Member of the mayoral committee responsible for finance, Moses Makwakwa, delivered the city’s R29.5-b budget for the 2015/2016 financial year on Thursday, May 28.
This year’s budget increased by 10.9 per cent compared to last year’s R26.6-b.
Makwakwa acknowledged that the collection rate for the city is below target.
“In the midst of the current socio-economic climate we remain committed to the 93 per cent collection target,” he said.
Rate-paying citizens were commended for their continued payment for services and for the increase in the use of the e-Siyakhokha online system.
“Currently we have 170 000 registered accounts, a 107 per cent increase on the 82 000 we had in the 2013/2014 financial year,” said Makwakwa.
He stressed that socio-economic conditions of the city and that of its citizens were considered when the tariff increases were drawn up.
The city’s budget includes tariff increases of 7.5 per cent for assessment rates, 12.2 per cent for electricity, 14.5 per cent for water and 9.5 per cent for sanitation, while refuse removal will increase by 8 per cent.
The electricity increase is determined according to Eskom, which is line with the National Electricity Regulator of South Africa (NERSA).
The increase in water rates was decided by Rand Water.
Tariffs for cemeteries, libraries, recreational halls and the hiring and use of sports and recreational facilities remain unchanged.
Makwakwa did not hold back in boasting that the city is the most affordable metro, in the country, to live in.
The average monthly household bill in Ekurhuleni is R1 403.79 – compared to Johannesburg’s R1 837 average household bill.
With over 100 000 indigent households in Ekurhuleni, the city will spend R2.5-b as a social package for indigents and other households.
They will receive 100 per cent rebates on assessment rates, a free 9kl of water, free 9kl of sanitation, free refuse removal and 100 kilowatts of free basic electricity.
“We provide free basic services to all residents of Ekurhuleni which includes; R150 000 on property value is exempted from assessment rates, a free 6kl of water and sanitation, 100kW of free electricity to low end-users, additional pensioner’s rebate on property assessments, while churches and NGOs will still be exempt from assessment rates,” said Makwakwa.
He also expressed concern over the metro’s under spending patterns on its capital budget – which are below 90 per cent, saying: “The under spending is working against our political mandate to accelerate service delivery and development.
”During the 2014/2015 budget statement I pronounced that there would be consequences for under spending, and I reiterate this call.
“In this regard we are closely watching the organisational performance report, which will determine the kind of action to be taken”.
Expenditure allocation breakdown:
- R14.6b for Medium Term Revenue Expenditure Framework (MTREF), 40 per cent will be spent on upgrading infrastructure, 30 per cent will be spent on changing the city’s landscape and a further 30 per cent will be used for economic development.
- R825-million has allocated for transport infrastructure repairs and maintenance.
- R1.2-b towards roads and storm water, including improving pedestrian walk ways in 71 wards which include Daveyton, Etwatwa and Wattville.
- R1.4-b towards street and high mast lighting, upgrading substations, network enhancement and electrification and alternative energy sources.
- R1.1-b will be used for upgrading water and sewer networks and maintaining water infrastructure.
- R579-m will be allocated for human settlement development and urban renewal.
- R128-m towards the rehabilitation of existing emergency infrastructure.
- R193-m on sports, recreation and arts and culture.
- R104-m for provision of health care, early childhood development and promotion of healthy lifestyle- the construction of Crystal Park Clinic has been included.
- R267-m in keeping the city clean through intensified cleaning waste management, grass cutting, illegal dumping, cleaning of lakes, dams and township entrances.
- R26-m has been allocated for bursaries and skills development programme.
- R89-m will be spent on digitalising the city through installing 326 hotspot sites.
Tariff increases breakdown:
- Assessment rates to increase by 7.5 per cent
- Electricity tariffs to increase by 12.2 per cent
- Water tariffs to increase by 14.5 per cent
- Sanitation tariffs to increase by 9.5 per cent
- Refuse removal cost to increase by 8 per cent
