eTHEKWINI Municipality tabled its draft 2015/16 budget of R39.1-bn at an executive committee and full council meeting on Tuesday, 31 March.
With the growing electricity crisis, Eskom has set a bulk purchase increase at 14.24%, however guided by the National Energy Regulator, eThekwini has set the electricity tariff at 12.2%.
The municipality additionally faces a huge challenge of water loss which is currently at 35%.
Leakages and overflowing reservoirs are some of the factors that have a cost implication on the budget. Thus the water tariff increase has been set at at 9.5% for residential consumers and 12.9% for business.
Other tariff increases are assessment rates at 6.9%; sanitation at 7.9% and refuse at 7.9%
The capital budget of R6.1bn has five strategic focus areas: Social, economic, asset management and rehabilitation, environmental, admin and support systems. The increased operating budget is R33.1bn with the main driving costs being R5.9bn for water services, R2.1bn for sanitation, R12.5bn for electricity, R1.6bn for engineering services and R3.1bn for community and emergency services.
The city has prioritised growing the economy and job creation, expanding and improving municipal infrastructure, accelerating and improving service delivery to communities, fighting poverty and building safe, sustainable communities and improving skills development to raise productivity. One of the highlights of this is that R65.8m is provided for youth development initiatives benefiting 2,367 pupils.
Mayor James Nxumalo encouraged all to attend and participate in the budget consultation process. “This is a people’s budget owned by the citizens of the city.” The budget will be taken to communities during April where citizens will be given a platform to comment and ask pertinent questions. The municipality will take these concerns and comments forward before the adoption of the budget on 27 May.
