ELECTRICITY and business water had the highest tariff increases in eThekwini Municipality’s budget which was approved by majority vote in a special sitting of full council yesterday.
The R39.1 billion budget for the 2015/16 financial year was tabled by Mayor James Nxumalo and was seen to be “pro-poor.”
Addressing the media today during a presentation of the key budget highlights, Nxumalo said the Municipality’s budget has been developed in line with the City’s overall planning framework in mind and includes programmes as well as projects to achieve eThekwini’s strategic objectives.
The lion’s share of the Municipality’s Capital Budget will be pumped into low-cost housing and infrastructure development throughout the city.
The Municipality’s major Capital Programmes for the next three financial years include:
- Low cost housing and infrastructure to the tune of R 3, 21 billion;
- eThekwini Transport Authority road upgrade amounting to R3, 2 billion;
- An amount of R 874,9 million to address community service backlogs;
- An amount of R 1, 67 billion for electricity infrastructure;
- A roads rehabilitation and reconstruction programme, together with new
- access roads to the tune of R 1, 65 billion.
- An amount of R1.155 billion for the Western and Northern Aqueduct.
Nxumalo said this is a balanced budget which is aimed at changing people’s lives through radical economic transformation and accelerated service delivery.
“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.
Nxumalo said the key strategic focus for the Municipality is to ensure that the City becomes financially resilient in an environment characterised by huge demands on the budget.
These demands include addressing issues related to the aging infrastructure, developing new infrastructure and closing the social gap.
“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,” said Nxumalo.
Nxumalo said that in drafting the tariff increases, the City took cognisance of economic conditions, input costs and the affordability of services to ensure the financial sustainability of the city.
He said revenue generated from rates and service charges accounts for 67.7 per cent of the total revenue. Electricity charges account for 35.6 per cent equivalent to R 11.8 billion and are projected to increase to R 14.7 billion by 2017/18.
The main tariff increases for the 2015/16 financial year are:
• 6.9 per cent for assessment rates
• 9.5 per cent for residential water
• 12.9 per cent for business water
• 12.2 per cent for electricity charges
• 7.9 per cent for sanitation
• 7.9 per cent for refuse removal
