Mayor cuts fat for leaner budget

WITH the uThungulu District’s annual budget down by R3.97-million from 2015/16 projections, Mayor Thembeka Mchunu will scrutinise every cent spent against the backdrop of the tough economic climate, drought and escalating electricity costs.

Delivering her R1.074-billion budget speech recently, Mchunu said strict cost containment measures will be implemented, as well as cutting employee costs and increasing tariffs for services this year.

‘It was highlighted in the State of the Nation Address that excessive and wasteful expenditure has been reduced, but there is still more to do to cut wastage,’ said Mchunu.

‘New measures will include curtailment of overseas trips and the submission of strong motivations by those requesting permission to travel. The benefit to the country needs to be proved.

‘There will also be further restrictions on conferences, catering, entertainment and social functions.’

The salary budget for municipal employees increased by R1.8-million from last year’s projections, but it was resolved at a Budget Steering Committee meeting held in November that only critical positions should be included in the budget.

A total number of new posts requested was 81, but whittled down to 13.

‘Despite the proposed increase in staffing numbers, there has been a minimal increase in employee related costs,’ said Mchunu.

‘This is attributable to the fact that the overtime budget has been aligned to the overtime policy, where provision is made only to those employees earning below the threshold and those that are deemed as emergency or essential services employees.’

The annual increase in salaries will be 6% in line with the 2015 salary and wage agreement entered into between South African Local Government Association (SALGA), the employer body and organized labour.

Drought and rising tariffs

An amount of R34-million is being allocated to the drought relief vote in the next financial year.

Mchunu emphasized this should be adequate, but only if reticulation projects and the municipal water infrastructure grant’s drought intervention projects are rolled out in line with the approved budget.

In the midst of the drought, high costs of water reticulation and the effects on the provision of services has also necessitated tariff increases.

‘Balancing the need to be affordable and with due consideration of the financial struggles faced by our consumers, tariffs for services will increase by between 10% and 25% in the 2016/2017 year.’

The proposed increases are 10% for water, 10% for sanitation, 20% for waste (but 25% for building rubble and green waste) and 10% for cemeteries.

‘This draft budget will now go through the stringent community participation process, where our communities will be allowed to engage us on the budgetary decisions we have taken,’ Mchunu said.