CHDM tables hefty budget
THE Chris Hani District Municipal (CHDM) council approved its 2015/ 2016 R1.7-billion capital and operation budget during the State Of the District Address at the Sandringham Sports Club on Wednesday.
The capital budget stands at R767-million with an operating budget of R874-million, with a budget deficit, attributed to non cash items, of R87-million. The capital budget is 23% more than the 2014/2015 adjusted budget while the operating budget has increased by 4%. “The capital programme decreases to R600-million in the 2016/17 financial year and R558-million in 2017/18. The municipality has to fully implement the revenue enhancement strategy to increase the revenue base of the municipality,” Koyo said. He said the main source of funding for the district authority was from conditional grant
funds.
In the 2015/16 budget year contracted services will cost R21-million and bulk purchases R26-million while R115-million has been set aside for depreciation and asset impairment and councillor remuneration will stand at R11-million.
CHDM was currently constrained with capacity and skills issues in various departments hence the use of service providers to enhance business process flows.
The preparation of annual financial statements, chief financial officer support and security services is set to cost the district authority R25-million in the upcoming financial year - a 6% in- crease. The equitable share projects of various departments linked to the service delivery and budget implementation plan would be to the value of R98-million. The budget for debt impairment constitutes 11% of the operating budget and was based on a collection rate of 40% and the debt write-off policy of CHDM. In the 2015/16 financial year the amount equals R100-million. The transfers and grants amount to R20.6-million and include a transfer to the Chris Hani Development Agency of R15.6-million and the indigent subsidy of R3-million.
THE Chris Hani District Municipality would have to generate the required revenue to continue improving the quality of services it had to provide to citizens, executive mayor Mxolisi Koyo said during the State of the District address on Wednesday.
Koyo said the municipality had to improve the revenue cycle in order to have funds available to improve the cash flow position of the municipality and its liquidity.
The budgeted allocation for employee-related costs for the 2015/2016 financial year would R259-million, or 27% of the total operating expenditure.
“Based on the three year Salary and Wage Collective Agreement, salary increases have been factored into this budget at a percentage increase of 6% for the 2015/16 financial year. Budget appropriations total R115-million for the 2015/16 financial year and equate to 13% of the total operating budget.”
Operating programmes to be funded from the equitable share fund will total R91-million. Engineering services would receive R100-million, integrated development and planning R49-million, health and community services R14-million, corporate services R19-million and the municipal manager’s office, which includes communication services, R8-million.
Capital income will include R70-million from provincial treasury, water services operating grants (WSOG) of R5-million and a rural households infrastructure grant (RHIG) of R4-million. The municipal water infrastructure grant (MWIG) will be R121-million, the regional bulk infrastructure grant (RBIG) R276-million and municipal infrastructure grant R189-million. The MIG, RBIG, RHIG, and WSOG are conditional grants allocated to specific projects.
Emalahleni capital projects will include R20-million on the Dordrecht bucket toilet eradication, R8-million for a sanitation backlog, R22-million for cluster 2 water backlog and R4-million for Mhlanga ward 14 water supply. CHDM will spend R3-million on the upgrading of the Molteno oxidation pond in Nkwanca. In Intsika Yethu, R10-million will be used for the ward 8 sanitation pilot project of the VIP toilets, R13-million on a ward one sanitation project and cluster six, seven and eight VIP toilets will cost R12-million.
Cradock water and sanitation services in Inxuba Yethemba will receive R3.1-million. Lukhanji will receive R31-million including payments of R4.5-million each to the Zingquthu water supply backlog and Ilinge bulk services, R6-million for a Queenstown bulk water upgrade and R5.8-million for phase six of the Hewu water supply. R10-million will be spent in Cala, Sakhisizwe, on bulk water and sanitation services. In Tsolwana R2.5-million will be spent on a sanitation project, R2-million for Tarkastad bulk services and R1-million for a Hofmeyr water and sewer bulk services upgrade. From the RBIG, Lukhanji will receive R87-million for the augmentation of the Queenstown water supply from Xonxa Dam, Intsika Yethu R88-million for a water backlog project and Tsolwana will get R18-million for Hofmeyr’s water supply.
The water tariffs for households will be unchanged at R8.66 for 0 – 6kl per month, R10.02 for 5 – 15kl and R12.28 for 16 – 30kl. It will remain R15.29 for 31 to 45kl, R16.70 for 46 – 60kl and R18.85 for more than 60kl. Basic charges for businesses will be reduced to R127 and non governmental organisations will pay R118. Further information on the applicable tariffs is available from the municipality.
To install a water consumption management meter in order to restrict the flow through the connection to 30kl or less per month will cost R2 691 for a 15 millimetre connection. In businesses, to terminate or reinstate the water supply will cost R836.
DA councillor Robert Venske asked that part of the budget dealing with water and sanitation not be approved as there were unresolved challenges with unhappy customers in the district. CHDM integrated planning and economic development portfolio head Ray Shweni persuaded Venske to accept and not lead to a vote on the adoption of the budget. “If we do not approve it councillor Venske is indirectly saying let us not collect and create more problems. Upon adoption of the budget transitional mechanisms will take place to deal with problems.”
Speaker George Xoseni said the general feeling was that the budget be approved, and note would be taken of what Venske had said.