ETHEKWINI Municipality’s 2016/17 budget sees an electricity tariff increase of 7.64% and 12.5% for residential water, while the municipality aims to use the budget to increase wifi coverage and public transport access.
The budget, which was announced at city hall on 31 May, has increased from R31.7-billion in 2011 to R41.6-billion this year. The city’s capital budget has grown from R5.3-billion to R6.7-billion and it has over R6-billion in cash-on-hand. The operating budget, which funds the continued provision of services provided by the municipality, increased from R33.1-billion in 2015/16 to R34.9 billion in 2016/17.
Mayor James Nxumalo delivered the budget speech and service delivery track record for the past five years and said the municipality plans to step up efforts to bridge the gap between the rich and poor by creating sustainable economic growth and development opportunities for the youth and women, with R100-million set aside for youth programmes.
With over 1,500 kilometres of optic fibre cables already laid, free wifi is available at all municipal libraries and the municipality aims to launch free wifi in all major townships, rural areas and areas around universities or where there is a high concentration of students before the end of June.
According to Cllr Nxumalo, priorities to be addressed are access to public transport, climate change and mitigation, creating a safer and socially cohesive city economic growth and development, fighting diseases such as TB and HIV/Aids financial sustainability, human capital development, human settlements, job creation, service delivery backlogs, water and drought challenges and youth and women empowerment.
Also high on the municipality’s agenda is to create an alternative agricultural value chain which will benefit existing and emerging farmers, thus responding to issues of food security.
In terms of tariff increases Cllr Nxumalo said these were set according to the current economic climate, increase bulk purchases cross subsidisation, slow growth percentages and the decrease in consumption of water and electricity and were in-line with inflation.
Tariff increases include:
* Assessment rates: 6.9%
* Residential water: 12.5%
* Business water: 15.9%
* Electricity charges: 7.64%
* Sanitation: 9.9%
* Refuse removal: 7.9%.
The theme of the budget was ‘together advancing people’s power in eThekwini’ – which aimed to empower residents to contribute to the mainstream economy and not be perpetually dependent on the state.
The municipality’s targets for the next three years, according to Cllr Nxumalo, includes the building of 15,500 houses; four new fire stations; converting 38 kilometres of gravel to black-top; creating 90,000 expanded public works programme opportunities; installing 24,000 sewer connections; adding 37,500 water connections; providing 1,090 gap market housing opportunities; 10,500 rural sanitation areas; providing 12,538 serviced sites; 90,000 electricity connections; upgrading 1,400 pre-1994 housing stock and improving 174 clinics.
The mayor said the municipality established a city planning commission – the first in the country – whose main objective it is to guide the municipality on issues relating to the development of its long term growth and development strategy.
“Everything we have done since we have been in office has been geared towards changing the material conditions of our people. This budget is really our instrument to enhance that,” said Cllr Nxumalo.
“We must act strongly against those who destroy public facilities in the name of democracy. We are also against so-called businesses that want to stop work and prevent council employees from carrying out the work required by residents. We also appeal to workers not to use unreasonable means to demonstrate their grievances,” he said.
In the same vein, he added, the municipality must also act speedily and honestly to address issues that affect employees to ensure a harmonious labour relations environment was created.
