Ugu approves budget of R1.5 billion for new financial year

Ugu District Municipality approved the final draft budget which has gone through a series of public consultations during April, at a virtual council meeting held yesterday (May 27).

“The approval of this budget for the upcoming financial year starting on July 1, 2021 signals a high level of commitment by the municipal leadership in rapidly responding to the service delivery of water and sanitation services in the district,” said municipal spokesperson, France Zama.

Council has approved a total budget of about R1.5 billion for the 2021/22 financial year with an allocation of about R1.3 billion to operational budget and a capital budget allocation of more than R345 million.

“This draft budget is seeking to strike a balance between ongoing service delivery issues of water and sanitation while also responding to the developmental challenges confronting the district. This budget is influenced by the current economic challenges faced by the country and our district in general, emanating from the effects of the Covid-19 pandemic,” added Mr Zama.

The approved budget will mainly focus on the core municipal function of water and sanitation services with major projects of water and sanitation expected to be implemented across the district to ensure security of water supply in the district. An allocation of more than R140 million has been made towards the maintenance of infrastructure.

“Tariff increases for the year have been kept at below minimum despite the major increases on our input costs from Eskom imposing a tariff increase of 15.5 percent. Umgeni Water tariff increase of above five percent on bulk water supply and a projected staff increases of 5.5 percent.”

A tariff increment of 6.5 percent for water and sanitation services has been approved and will be levied to all customers with effect from July 1, 2021.

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