R49-billion budget for the City

MEMBER of the Mayoral Committee (MMC) for Finance and Economic Development, councillor Doctor Xhakaza, delivered the City’s budget speech at the Germiston Council Chamber on May 23.

The speech highlighted the control of tariff increases, merging of social packages and improving infrastructures in business centres. As part of new developments, the Alberton Boulevard, among other urban centres, will be revamped and given a vibrant corporate look that will attract and boost investor confidence.

The budget was delivered on the back of achievement of 94 per cent revenue collection rate from the annual billing.

Xhakaza’s speech presented an annual budget of R48.9 billion for 2019/20 financial year, with an operating expenditure of R41.5 billion. The allocation of funds will cover numerous aspects such as human settlements, energy, renovation of towns and townships, cleaning, disaster and emergency services.

Tariffs

Electricity tariffs will only be increased by between 13.07 per cent and 13.87 per cent depending on the usage. Water tariff will increase by 15 per cent, which is equal to the increase marked by Rand Water.

Sanitation tariffs are said to increase by 11 per cent, which is informed by the cost of sewer purification processes undertaken by the East Rand Water Treatment Company (ERWAT).

The refuse removal tariff will increase by 7.5 per cent for all users due to the main cost drivers of the service.

Due to the need to maintain cemeteries, residents will receive a tariff increase of 5.2 per cent and those who are non-residents will receive a 6.5 per cent.

Social package

This is an umbrella of benefits which are freely allocated to residents. The City will take up the cost of R4 billion for the social package which includes:

A 100 per cent refund on assessment rates.

Free refuse removal.

First 100kWh of electricity per month is free.

First nine kilolitres of water and sewer per month is free.

Special rates on emergency services such as ambulance and fire-fighting, and free needy burial.

This, according to Xhakaza’s speech, is more than the provision made by the national government policy and the City will bear the costs of the difference.

Metro police and Disaster and Emergency Services Management: The EMPD, Disaster and Emergency Services has been allocated R914-million.

Cleaning

The City has budgeted R305m over the MTREF for waste removal, grass cutting, litter picking and tree felling.