THE severe drought and hammering effects of load shedding has taken its toll on the City of uMhlathuze, with the municipality posting a deficit of R39.3-million in the proposed adjustment budget for 2014/15.
The drop from a surplus of R7.3-million is largely as a result of increased expenditure on water purchases.
This is in light of extremely low levels at Lake Mzingazi (33.2%) and Lake Cubhu (32%) as at 31 December.
At Thursday’s Executive Committee meeting in Richards Bay, Councillors heard that apart from the bulk purchase budget of R89.6-million for water, the municipality had to cater for an additional expenditure of R42.5-million.
And according to City Mayor Elphas Mbatha, this figure could increase if the drought persists.
‘An application will be made through the Department of Cooperative Governance and Traditional Affairs for drought relief funding. There is a need to create more awareness among residents about the drought and for municipal restrictions and punitive measures to be implemented,’ said Mbatha.
Councillor visits to various sites will also be scheduled to inspect water connections and meter installations.
‘This is to ensure that we cut down on water losses. We will also do inspections of car washers as only legal businesses will be allowed to operate. However, they must also show how used water is utilised,’ said Mbatha.
Last week, illegal car washers in Biyela Street were still seen in action, accessing water from a broken pipe despite the ban on all non-essential use of water.
Slump
With ongoing load shedding and consumers utilising less power, there has also been a massive slump in revenue from the sale of electricity, standing at R90-million.
Other areas of concern included the increase in overtime expenditure of R2.9-million, a spike of R4.2-million in legal fees owing to ongoing litigation and an increase of R3-million in security costs.
Mbatha called on officials to ‘deal efficiently with tenders’ to avoid delays, cancellations and legal objections.
‘There is a need for officials to take great care in reducing expenditure. They are not doing their homework beforehand when it comes to tenders, resulting in cancellations and insufficient funds.’
Chief Financial Officer Mxolisi Kunene said there would be no advertisements for any new staff apart from those which were already in the process, as well as essential appointments.
