Member of the Mayoral Committee for Finance and Economic Development, Councillor Doctor Xhakaza, delivered the Ekurhuleni metro’s budget speech in the Germiston Council Chamber today (May 23).
The budget was delivered on the back of achievement of 94 per cent revenue collection rate from the annual billing.
Among other achievements is an unqualified audit, with a reduction in the number of factors of concern to the Auditor-General.
Some of the highlights include:
• Zero unauthorised expenditure and zero fruitless and wasteful expenditure.
• 42 per cent reduction in irregular expenditure.
• Clean audit on performance information.
Xhakaza presented an annual budget of R48.9-billion for the 2019/20 financial year, with an operating expenditure of R41.5-b.
The operational expenditure is funded as follows:
• Revenue generated internally – R32.82-b.
• Operating grants – R5.9-b.
• Capital grants – R2.78-b.
Tariffs
The budget proposed an increase of 7.5 per cent for assessment rates, consistent with the consumer price index (CPI) of 5.2 per cent plus 2.3 per cent for real growth.
ALSO READ:
City Times photo competition deadline extended to May 31
Electricity tariffs will only be increased by between 13.07 per cent and 13.87 per cent depending on the usage, whereas the National Electricity Regulator of South Africa (Nersa) granted Eskom an increase of 15.63 per cent in March 2019.
This means the metro will absorb and not pass on to consumers the difference in percentage points between the two increases.
Water tariffs will increase by 15 per cent, which is equal to the increase announced by Rand Water.
Sanitation tariffs will 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, owing to the main cost drivers of the service.
There have not been tariff increases for cemetery and crematoria over the past five years. Due to the need to maintain the cemeteries, a nominal tariff increase of 5.2 per cent for residents and 6.5 per cent for non-residents was effected.
Social package
The metro will shoulder the cost of R4-b for the social package, an increase of R300-m compared to the previous financial year.
The complete package of indigent relief is as follows:
• 100 per cent rebate on assessment rates.
• Free refuse removal.
• First 100kWh of electricity per month is free. This is more than the provision made by national government policy and the metro will bear the costs of the difference.
• First 9kl of water and sewer per month is free.
• Special rates on emergency services such as ambulance and firefighting.
• Free indigent burial.
The metro continues to provide the first 6kl of water and sanitation free to all households with a property value of R750 000 or less.
To date, the indigent database has 112 000 members and the income threshold remains R5090 or less per household.
Human settlements
Xhakaza allocated R4.6-b in the Medium-Term Revenue and Expenditure Framework (MTREF) and R1.6-b for the 2019/20 financial year to the Department of Human Settlements.
Major projects in this regard include:
• Leeuwpoort mega project: R380-m for the MTREF and R165-m for the 2019/20 financial year.
• Chief Albert Luthuli mega project: R189.5-m for the MTREF and R60.5-m for the financial year.
• Esselen Park: R234-m for the MTREF and R107-m for the 2019/20 financial year.
• Clayville: R57.5-m for the MTREF and R30.5-m for the 2019/20 financial year.
A further R101-m has been set aside for the maintenance of hostels and rental stock.
Energy
A total of R2.29-b has been set aside for the MTREF and R706-m in the new financial year to cover the following:
• Electrification of informal settlements: R732-m for the MTREF and R202-m for the next financial year.
• Lighting programme of townships such as Thokoza, Tsakane, Tembisa, Etwatwa, Katlehong and others: R161-m for the MTREF and R46.5-m for the 2019/20 financial year.
Furthermore, R3-b has been budgeted for the MTREF and R892-m for the new financial year for the maintenance of the electricity infrastructure and the refurbishment of substations in areas such as Germiston, Edenvale and Kempton Park.
Refurbishment of towns and townships
The work to improve and give a facelift to the decaying urban centres such as Germiston, Boksburg, Kempton Park and the Alberton Boulevard will continue to turn them into modern urban centres with a vibrant corporate look that can attract and boost investor confidence.
In this regard, an amount of R998-m is set aside for the MTREF and R404-m for the 2019/20 financial year.
Key projects in this regard include:
• Kempton Park CBD: R186-m for the MTREF and R31-m for the 2019/20 financial year.
• Germiston CBD: R613-m for the MTREF and R188-m for the financial year.
The allocation for regeneration of townships is as follows:
• Tembisa: R124-m for the MTREF and R75-m for the new financial year.
• Kathorus: R75-m for the financial year.
• Wattville/Actonville: R110-m for the financial year.
Metro police and Disaster and Emergency Management Services
The EMPD and Disaster and Emergency Management Services have been allocated R914-m in the MTREF and R275-m for the new financial year.
The metro will also build new fire stations in, among other areas, Katlehong, Reiger Park and Olifantsfontein.
An amount of R98-m is budgeted for the recruitment of 266 additional metro police constables.
Cleaning
The metro has budgeted R305-m over the MTREF for waste removal, grass cutting, litter picking and tree felling.
Cost containment
Xhakaza committed the metro to radically altering the budget spent on catering without undermining the economic empowerment focus of this expenditure item.
Measures to recover costs incurred as a result of motorists who damage traffic signals, street lights and other municipal infrastructure will be strengthened.
He further committed that additional revenue sources will be used and all revenue leakages will be stopped.
For the detailed budget speech, visit ekurhuleni.gov.za
Like our Facebook page and follow us on Twitter.
For news straight to your phone invite us:
WhatsApp: 079 431 1217
Instagram: benonicitytimes.co.za
For more #hyperlocal news at your fingertips, visit Boksburg Advertiser, Springs Advertiser, Brakpan Herald, African Reporter and Kathorus Mail
