Cash-strapped eThekwini calls for public comment on city’s draft budget

WITH just 60 days cash reserves on hand, eThekwini Municipality is urging all its ratepayers to keep up their rates and services payments to ensure the city is able to keep up uninterrupted service delivery. This was revealed at a meeting of the Executive Committee last week when the City’s consolidated R 52.3 billion draft budget for the 2020/2021 financial year was revealed and is currently available online for public comment. The consolidated budget consists of the capital budget of approximately R 6.9 billion and an operating budget of R 45.4 billion in 2020/21.

Msawakhe Mayisela, municipal spokesperson, said the budget has been tabled at a time when the country faces an economic crisis, together with the outbreak of the coronavirus pandemic that has brought markets to a standstill, globally. Despite these challenges,the city wanted to assure residents that uninterrupted service delivery remained a priority.

He said the municipality was aware of the ramifications of the national lockdown and had taken measures to assist residents. eThekwini, together with other metros is in discussions with National Treasury to allow consumers to enter into payment arrangements after the lockdown has been uplifted. This, he said, would however ber dependent on the state of the economy and affordability at that time.

Other interventions had also been introduced to mitigate the effects of the coronavirus pandemic and provide relief to consumers and business. These included that no water or electricity disconnections would be undertaken during the period of the lockdown, no interest would be charged on arrears incurred during lockdown and the deadline for the submission of rates rebate applications would be extended to 31 May.

ALSO READ: Metro police adopt zero tolerance for lockdown contraventions

He said the city would resume consultations with all stakeholders regarding the impact of the coronavirus after lockdown and will review budgets and approved cost containment regulations and policy will be stringently implemented and monitored.

“However, with only 60 days cash reserves on hand, the municipality is dependent on income from rates and services to ensure uninterrupted service delivery and thus appeals to those that can pay for services to continue to do so. In compiling the draft budget, the City had to adopt several interventions to cushion the most vulnerable citizens whilst still trying to balance fiscal discipline,” said Mayisela.

Tariff increases

Electricity – The electricity tariff increase is proposed at 6.9 per cent which is a 50 per cent reduction from the anticipated increase in the MTREF.

Water – Following the review by the Budget Prioritisation Committee, negotiations with Umgeni Water Board to reduce their tariff increase to 6.9 per cent a tariff increase of 9.9 per cent is being proposed.

Sewerage and refuse tariffs – Following the reprioritisation and reviewing of all expenditure items, the increase will be 9.9 per cent.

Indigent policy

To help homeowners during tough economic times, the City approved a new Indigent Policy in February which will provide welcome relief to those living on properties valued under R500 000. This is a huge increase in the qualifying threshold property value from R230 000 last year. The income per household has been capped at R3 600 per month to ensure that the right households are targeted.

Residents are encouraged to comment until 8 May on the proposed budget via email: Constance.Mwelase@durban.gov.za or info@durban.gov.za.

The draft MTREF 2020/2021 can be viewed via: https://www.durban.gov.za/Resource_Centre/reports/Budget/Pages/default.aspx

No hard copies will be available during the lockdown.

Do you want to receive news alerts via Telegram? Send us a message (not an sms) with your name and surname to 060 532 5535.

You can also join the conversation on Facebook, Twitter and Instagram.

PLEASE NOTE: If you have signed up for our news alerts you need to save the Berea Mail Telegram number as a contact to your phone, otherwise you will not receive our alerts

Here’s where you can download Telegram on Android or Apple.