The eThekwini Municipality has officially adopted the 2012/2013 Budget at the Special Full Council sitting yesterday. ‘Mayor, Cllr James Nxumalo presented the R31.8 billion which consists of an operating budget of R26.5 billion and a capital budget of R5.3 billion.
Delivering his speech, Nxumalo emphasised the fact that the Municipality is on a sound financial position. He emphasised that the Municipality had presented a pro-poor budget that sought to address challenges of unemployment, poverty and inequality. ‘Through this budget we have attempted to respond positively to the plight of our communities who are facing tough socio-economic challenges,’ said Nxumalo
He also stated that the Regional Budget Hearings had been successful and stemming from this the Municipality had decided to heed the call of the community to drop the proposed R20 charge for properties valued at less than R185 000. He said the Municipality has increased the financial relief provided to the poor, including free 9kl of water and 65kwh of electricity. -The Mayor also emphasised that eThekwini is definitely in line with the national call for job creation and decent work. He said the Municipality’s workforce has increased by 23% to 22 644.
‘We are striving to provide jobs through our Expanded Public Works Programme, Zibambele Poverty Alleviation Programme. Furthermore 35% of the infrastructure capital budget of R2.39billion over three years is to be designed and implemented to maximise labour opportunities in line with the EPWP.’
He said eThekwini has once again achieved an unqualified audit report for the 2010/11 financial year with no issues being raised with regard to controls. ‘National Treasury has rated eThekwini the best performing metro based on a range of issues from capital expenditure to collection rates. The Municipality still maintains the best credit rating in the sector.’
Nxumalo said that over the past few years the Municipality has managed to contain tariff increases to inflationary related increases. This is apart from the electricity bulk increase from Eskom which is beyond our control. The water tariff hike is higher this year because of the Municipality’s contribution towards the building of the Spring Grove Dam in Mooi River.
The tariff increases for 2012/2013 are as follows:
Water: Residential – 12.5%
Water: Business – 15.5%
Electricity – 11%
Sanitation – 6.5%
Solid Waste – 7%
Rates – 6.5%
The Mayor also announce several economic development projects, including ‘the R4.6 million set aside for projects that will be undertaken to support the economic sector such as tourism and manufacturing which are job creators in the local economy.’
An amount of R254 million has been set aside for the provision of interim services to informal settlements. This will service about 10 000 households per annum. Services to be provided include water, sanitation, refuse removal, footpaths, road access and electricity where possible.
Nxumalo added that the Housing Department will be capacitated to increase the number of houses to be delivered from 8500 to 20 000.
He also emphasised that steps have been taken to deal with audit queries raised by the Auditor General and processes are already underway to deal with findings of the Manase Report. ‘This is a well balanced budget in terms of economic development and job creation on the one hand and social expenditure in terms of the poor on the other hand.’
