Ekurhuleni delivers 2014/15 budget
The City of Ekurhuleni has made great strides towards being a metro in which everyone works together to ensure a better life for all. Our budget for 2014/15 comes as South Africa celebrates 20 years of a democratic government and three weeks after the national polls in which for the fifth time the ANC was chosen as the preferred party to move our country forward. Ekurhuleni continues to innovatively use limited municipal resources to improve the lives of our people. Like the country, our metro is vastly different to before 1994. The budget seeks to continue the service delivery legacy through: • Continuing the provision of sustainable services, with much more improved quality; • Accelerating the broadening of services
to areas where there is none; and • Ensuring that our city’s outlook enables us to be a preferred destination for growth and development. The budget seeks to accelerate growth, create work opportunities and build a more equal society. Our budget modelling aligns with the Integrated Development Plan (IDP), a product of public participation. In taking our city forward, we are guided by the Growth and Development Strategy 2055 as well as the National Development Plan.
Medium Term Revenue and Expenditure Framework
Our revenue is R85 billion which is made up of R28 billion in 2014/15. The main contributors to the R28 billion are: • R4 billion from assessment rate • R12 billion from electricity sale • R1 billion from refuse collection • R4 billion from water and sanitation • R5 billion from government grants • R2 billion from other revenue
Proposed Tariff
To continue providing sustainable services, we are proposing the following tariff increase: • 0% increase on cemeteries and
recreational halls • 7.5% on assessment rates; • Eskom’s national tariff increase is
8.06%, however Ekurhuleni is absorbing at least 1.3% of ESKOM charges by only passing the increase of an average of between 6.3% to 7.6% on electricity.
• 8.1% increase on water for both residential and business which is the same increase by Rand Water.
• 8% on sanitation for both residential and business. • Refuse removal increase ranges between 2.4% to 7.1% for residents and
6% for business. The average increase on an account will be about 7.3% compared to the 9.3% average increase in 2013/2014 budget.
Social Support Package
The municipality will provide the following social package relief: • The first R150 000 on property value is
exempted from assessment rates. • For pensioners, an additional rebate for property assessments ranges from 10% to 100%. • Churches and non-governmental organisations are exempted from assessment rates. • All households will still enjoy 6 Kilolitres
of water and sanitation service for free. • We will continue to give an additional incentive of 100 Kilowatts of free basic electricity to low end users.
Indigents
We have allocated just under R800
million, therefore all our registered indigents will continue receiving the following services: • 100% rebates on assessment rates • Free 9 Kilolitres of water • Free 9 Kilolitres of sanitation • Free refuse removal • 100 Kilowatts of free basic electricity
and • Free burial To build social cohesion, R17 million has been set aside for the Grant in Aid programme.
Debt collection
Through the implementation of the revised revenue protection and enhancement project, we will continue with the battle of improving on collection so we can continue with service delivery. The elements of the project include: • Intensifying awareness campaign
through Siyakhokha Siyathuthuka. • Promoting the e-Siyakhokha registration
drive. • Applying aggressive credit control
measures to recover outstanding debt. • Engaging into public private partnership to eradicate the unacceptable levels of water losses and to install meters where stands are unmetered. • We will re-open the interest waiver scheme on outstanding accounts for business and residents.
Expenditure Framework Our expenditure is R85 billion, made up of R28 billion in 2014/15, representing an increase of 5.7% year on year. The main contributors to the R28 billion are: • R10 billion for Bulk Water, Electricity and Sewer • R2 billion for repairs and maintenance • R5 billion for personnel costs • R1 billion for bad debt provision • R2 billion for depreciation • R8 billion for general and grants expenditure
Capital Investment
Ekurhuleni will be investing R12 billion over the Medium Term Revenue and Expenditure Framework period. R3.6
billion has been allocated for urban restructuring, R4.8 billion for upgrading and renewal and R3.6 billion for economic development. Our long-term infrastructure investment is projected to be R85 billion.
Our capital investment of R12 billion will be spent in the following manner:
Transport, Roads and Stormwater
R4 billion has been allocated on transport, roads and stormwater.
Human Settlements
Ekurhuleni is geared for the full accreditation of providing houses to the residents. R4.3 billion will be added to Ekurhuleni’s capital investment programme as soon as the full accreditation is assigned.
Real Estate
R891 million (R266 million 2014/2015) is allocated for development and renewal of public facilities such as densification of Council buildings, Germiston Civic Precinct, upgrading of community parks and cemeteries.
Community Safety
R661 million (R235 million 2014/2015) is set aside for community safety.
Disaster and Emergency
• R174 million (R57 million 2014/2015) for fire stations, this will cover among others Albertina Sisulu Corridor, Duduza, Kwa–Thema, Germiston, Thokoza and Katlehong.
• R96 million (R29 million 2014/2015) for specialised vehicles.
Information and Community Technology
R556 million (R177 million 2014/2015) is allocated:
• R274 million (R78 million 2014/2015) towards the digitising of Ekurhuleni, providing youth with broadband connectivity.
• R276 million (R97 million 2014/2015) allocated for the system enhancement such as network and server
Environmental Resources Management
• R18 million (R6million 2014/2015) towards rehabilitation of Payneville Ext 3,Boksburg Lake, Natalspruit Catchment and degraded Wetlands
• R12 million (R4 million 2014/2015) for upgrading the Ambient Air Quality Monitoring Stations
Waste Management
• R238 million (R63 million 2014/2015) for the upgrading of the Simmer & Jack and Platkop waste fill sites as well as and other public offloading facilities.
• R114 million (R49 million 2014/2015) for waste removal trucks
Health and Social Development
R423 million has been allocated of which R329 million will be for construction and upgrading of the clinics in Villa Lisa, Dukathole, Selope Thema, Esangweni, Tsietsi, Chief Albert Luthuli, Crystal Park, Khumalo, Motsamai and Bonaero Park.
Sports, Recreation, Arts And Culture
We have allocated R330 million
(R122 million 2014/2015).
City Planning And Economy Development
We have allocated R174 million (R63 million 2014/2015) to spearhead planning and to facilitate the city’s economic development, growth and job creation. We have allocated R120 million for skills development and bursaries. We are allocating R330 million towards the Lungile Mtshali Community Development Programme as part of closing service delivery gaps, improving social urbanisation and job creation.
Customer Relations Management
We have allocated R60 million of which R44 million relates to 2014/2015. R33 million for upgrading and construction of customer care centres. An additional R25 million is allocated for Unified Command Centre. The journey of fast tracking socioeconomic development continues and we invite residents to rally a long side.That is how we can have a partnership that works for all.