Major tariff adjustments approved in CoE budget

The City of Ekurhuleni’s budget for the 2024/25 financial year was approved at an extraordinary council meeting on Friday at the Alberton Civic Centre.

The approved budget includes an operating budget of R60b, marking a 9% increase from the previous financial year, and a capital budget of R2.9b, reflecting a 5.4% increase.

They also approved major tariff adjustments, including a 4.9% increase in assessment rates, a 9% increase in water tariffs, a 7% increase in sanitation, and varying increases for electricity tariffs ranging between 11.02% and 12.74%.

The financial plan further includes providing free basic services to indigent households and various rebates for pensioners and low-income earners.

In light of these developments, the mayor, Nkosindiphile Xhakaza thanked the multi-party caucus for their unwavering support and cooperation in approving this crucial budget.

“Their commitment to the financial health and sustainability of our city has been instrumental in this progressive step towards improving the agility and restoration of quality service delivery in the city.”

The mayor highlighted the recent changes in the municipal leadership as a pivotal factor in the budget’s approval.

Last week saw the removal of the EFF’s Nkululeko Dunga as the city’s finance MMC.

“The decision to remove the MMC for Finance was not taken lightly, but it was necessary to address unforeseen misalignments and to ensure the swift adjustment and approval of our annual budget. This strategic move has paved the way for today’s success,” said Xhakaza.

Meanwhile, during the State of the City Address, Xhakaza highlighted six key pillars to propel the city forward.

These are:
• Provision of quality, equitable and sustainable services
• Repairs and maintenance of infrastructure
• Rebuilding of the fiscus
• Investment in critical infrastructure in partnership with the private sector
• Economic development focussing on the Aerotropolis, SMMEs and job creation
• Good, ethical and effective governance.
As part of the city’s ongoing efforts to improve its financial position, the city introduced a revenue enhancement plan.

This plan focuses on identifying revenue leakages, exploring new revenue opportunities, and implementing strategies to optimise revenue collection.

Successfully executing this plan will bolster the city’s liquidity status and ensure the continued delivery of quality services to the residents of Ekurhuleni.

“We have decided to appreciate the revenue challenges we face, hence we have elevated our revenue enhancement. We do this because we understand we need money to do our work and implement the IDPs as directed by our people,” added Xhakaza.