Finance MMC Doctor Xhakaza presented Ekurhuleni’s metro’s 2018/19 budget on May 24.
The budget further cements its pro-poor focus tabling the R37.5-billion operating budget and R6.9-b capital budget.
Xhakaza said the mayor, Mzwandile Masina, presented the State of the City Address two months ago which shared concrete plans about the future.
“Today we have tabled a very progressive budget that can only make our metro a better place to live, play and invest. Our people have today, like every year, heard how we are going to spend their money on turning their lives around.
Highlighting some of the municipality plans this financial year, the metro is raising assessment rates by 6.9 per cent after keeping the increase to zero per cent in the previous year.
The National Electricity Regulator of South Africa (Nersa) recently announced a bulk electricity increase of 7.32 per cent but the municipality will increase electricity by between 5.32 and 8.5 per cent subject to usage.
The metro is also proposing a 12.96 per cent increase in water, the same increase announced by Rand Water.
Sanitation tariffs will increase by 9 per cent informed by the cost of sewer purification processes undertaken by ERWAT.
The refuse removal tariff will increase by 7.5 per cent for all users due to a similar increase in the cost drivers of the service.
“There will, however, be no increase in library and information services, library auditorium, cemetery and crematoria, use of arts, culture and heritage facilities and the hire of parks and facilities.
“The municipality will continue to provide services at tariffs that are cost-reflective but also taking into account the affordability levels for our citizens.”
“By the way, a comparative analysis of the tariffs among the metros in the country makes Ekurhuleni among the cheapest municipality to live in.”
- Focus on the poor
The revised indigent support policy increases the threshold for qualification from R3 200 to R5 090.
This will increase the number of people that qualify for services. To assist the indigent, the amount exempt from property rates increases to R150 000 from R250 000.
“The metro is also revising its credit control policy to address complaints about charges levied on disconnected services, reconnection fees and attorney fees on accounts handed over for collection. This will review charges upon investigation of each individual case.”
Xhakaza announced that the municipality will allocate R1.2-b to the human settlements department which will cover the acquisition of land and properties, electrification of informal settlements, and development of mega projects.
The maintenance of hostels and rental stock will receive R70-m.
He highlighted that to upgrade energy infrastructure, the energy department will receive R576-m to enhance the network in Alberton, Benoni, Boksburg, Brakpan, KwaThema and Daveyton.
It will also assist to broaden lighting to Katlehong, Etwatwa, KwaThema, Springs, Vosloorus, and Tembisa, among others.
A total of R678-m will go towards improvement of the road network with a total of R2-b in a three-year period.
This amount will fund the Construction of Daveyton CBD/N12 interchange, doubling Barry Marais road to ease congestion at the entrance of Vosloorus, rehabilitation of Kaalspruit and upgrading of roads in the eastern part of the municipality.
“Water and sanitation receive R623.7-m for the Pomona Eastern Out Fall Sewer phase three.”
“The repairs, upgrades and extension of water pipelines and construction of new reservoirs as well as towers will be installed in places such as Alberton, Katlehong, Thokoza, Tembisa, Etwatwa and Vosloorus.”
- Budget figures
For the 2018/19 financial year, the budgeted operating expenditure is expected to be R37.5-b comprising of revenue generated internally (R29.2-b), operating grants (R6-b) and capital grants (R2.3-b).
Spending on capital and infrastructure projects is expected to be R6.9-b in 2018/19, an increase of R300-m from the 2017/18 financial year.
The capital budget will comprise of revenue generated internally (R976.1-m), government grants (R2.3-b) and loans (R3.6-b).
- Transport
The municipality is channelling R727-m in the new financial year and R2.1-b in three years to transport.
Key projects in this regard include:
• Construction of the new taxi ranks Greenfield, Katlehong and Windmill Park at R45 million over three years.
• New licensing facilities in areas Katlehong, Edenvale, Tembisa, Vosloorus and Alberton – R353-m over three years.
- Sports, Recreation, Arts and Culture
The metro is allocating R113-m to the Department of Sport, Recreation, Arts and Culture and R400-m as part of the medium-term revenue expenditure framework (MTREF).
This investment will go to, among others:
• Construction of the Reiger Park Recreational Park – R10-m.
• Construction of the Windmill Park Recreational Park – R10-m.
- Waste and Environmental Management
The metro has aside R1.3-b in the MTREF and R472-b in the 2018/19 financial year – for the Waste and Environmental Management Department.
• Rehabilitation of the Boksburg Lake – R20-m in 2018/19 and R55-m as part of the MTREF.
- Human Settlement
The metro has allocated R1.2-b in 2018/19 and R3.8-b in the MTREF to human settlements.
• The Van Dyk park mega project receives R70-m in 2018/19 and R244-m in the MTREF.
ALSO READ AND COMPARE: Ekurhuleni metro’s 2017/18 budget highlights
Watch: Reaction to State of the City Address
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