eTHEKWINI Municipality’s R39.1-billion pro-poor budget for 2015/16, tabled by Mayor James Nxumalo was approved by majority vote during a special sitting at full council at city hall on Wednesday, 27 May.
The lion’s share of the municipality’s R6.1 billion capital budget will be pumped into low-cost housing and infrastructure development throughout the city.
The major capital programmes for the next three financial years include:
- Low cost housing and infrastructure to the tune of R3,21-bn;
- eThekwini Transport Authority road upgrade amounting to R3,2-bn;
- R874,9-m to address community service backlogs;
- R1,67-bn for electricity infrastructure;
- Roads rehabilitation and reconstruction programme with new access roads to the tune of R1,65-bn.
- R1.155- for the Western and Northern aqueduct.
“We are now in our third decade of freedom but our economy remains untransformed with many of our people dependent on the state for grants. Through radical economic transformation we hope to build a society where citizens are not perpetually dependent on the state but are economically independent,” said Nxumalo.
“This budget contains priority issues of concern to the people of eThekwini. The constant power outages have been identified by the municipality as a risk. A multilateral forum has been set-up to come up with strategies to mitigate the impact of load shedding on the city’s operations and the local economy.”
Nxumalo said that in drafting tariff increases, the city took cognisance of economic conditions, input costs and the affordability of services to ensure financial sustainability.
“Revenue generated from rates and service charges accounts for 67.7% of the total revenue. Electricity charges account for 35.6 percent equivalent to R11.8-bn and is projected to increase to R14.7-bn by 2017/18.
Tariff increases for 2015/16 are:
- 6.9 % for assessment rates
- 9.5 % for residential water
- 12.9 % for business water
- 12.2 % for electricity charges
- 7.9 % for sanitation
- 7.9 % for refuse removal
“The significant contributory factor for the increase in rates and service charges must be viewed in the context of the percentage increases of bulk purchases of both Eskom at 14.24% and Umgeni Water at 7.7%. The municipality is opposed to Eskom’s proposal to implement further electricity increases and has called on National Treasury to intervene.”
City manager Sibusiso Sithole said the municipality has reported the highest number of work opportunities created, totalling 134,883.
“Another shining example is the Zibambele Poverty Alleviation programme which has created about 6,000 jobs. We have placed emphasis on youth and skills development and have budgeted R65.8-m with 2,367 learners benefitting from this initiative.”
