Service charges set to increase in EMLM

A DRAFT budget of more than R740-million for the 2017/18 financial year was approved by Enoch Mgijima Local Municipality (EMLM) council during an ordinary council meeting, with residents of the area set to face increases for services.

Increases include 6% each for rates and refuse collection and 2.2% for electricity.

Council approved that the first 50 kilowatt of electricity be provided free for registered indigents.

The indigent income levels have been set at R1 750 for destitute indigents and R2 540 for indigents.

The municipality tabled the total budget of R743.6-million comprising a R679.8-million operating budget and R63-million for capital projects.

The total budget showed a reduction of R168.9-million compared with the current financial year. The capital budget is funded mainly from government grants.

The budget was presented by chief financial officer (CFO) Nomthandazo Ntshanga, who said the municipal infrastructure grant funding was R52.3-million, the Integrated National Electrification Programme was set at R10-million and municipal generated funds for small capital purchases was R1.5-million.

Equitable share funding decreased from R167-million in the current financial year to R160-million for the 2017/18 financial year.

Due to current slow revenue collection, EMLM would have to limit non-priority spending.

“In many cases revenue billed is much higher than cash collected on that billing. Allocations for bad debt include R16.8-million for electricity, R12.3-million for rates and R14.4-million for refuse collection,” Ntshanga said.

Electricity bulk purchases would increase to R223.6-million in the 2017/18 financial year.

Current electricity losses were at 29% and were anticipated to decrease further in the 2017/18 medium term expenditure revenue framework with the implementation of the revenue enhancement strategy.

An amount of R5.4-million had been allocated in the operating budget for normal street maintenance and repairs. This was in addition to R21-million allocated in the capital budget through grant funding.

R1.5-million was included in the capital budget for the purchase of small equipment and machinery.

National Treasury, Ntshanga said, had indicated that 40% of the capital budget should be for renewal rather than for new infrastructure.

The intermodal transport facility had been allocated a total R7.5-million, phase 4 of the community lighting programme was funded by R7-million and R7.8-million would go to sport field projects.

Lesseyton and McBride sports fields would receive R2-million each, with R3.8-million to be set aside for the renovation of the Sterkstroom sports field.

The construction of new cemeteries in Ilinge and Whittlesea would receive R7.5-million and the Ilinge cemetery

R1.5-million. The upgrade of rural gravel roads in the municipal area would be allocated R2.5-million.

“Phase 5 of the surfacing of taxi routes in Molteno and Sterkstroom will receive an allocation of R3.4-million. Surfacing and paving of gravel roads in Ezibeleni and Mlungisi will receive R30-million,” Ntshanga said.

The improvement of rural roads and bridges would receive attention in the coming financial year with the construction of two bridges.

Phase 2 of Qwabi Bridge over Kuzingutu had been allocated R2.5-million, with Baccles Farm Bridge to benefit from R5.5-million. Fencing of grazing camps would receive R4.2-million.