A higher budget for 2015/2016
LUKHANJI Municipality is among 31% of South African municipalities considered to be in a state of catastrophe, Lukhanji executive mayor Nozi Makanda said shortly before the adoption of a R637.5-million budget during the state of the municipal address in Ilinge last Thursday.
The status of the municipality was indicated by research conducted in line with the Department of Co-operative Governance and Traditional Affairs’ ‘Back to Basics’ programme which focuses on the delivery of issues such as fixing street lights, leaking taps and collecting refuse. The programme followed Operation Clean Audit launched in 2009.
In the new budget, residents will be facing services increases, with electricity costs to rise 12.2%, rates by 6% and refuse collection by 8%. The first 50 kilowatts of electricity will be free to registered indigents.
The operating budget, which is for the day-to-day running of the municipality and which includes salaries, is R560-million while the capital budget, which accounts for service delivery, is R76.7-million. Makanda said the 2015/2016 budget was R113-million higher than the 2014/2015 budget, while the capital budget was R9.3-million higher and R5-million more than the draft budget.
“We have managed these increases in spite of the fact that
our equitable share allocation decreased by about R10-million. During the current fiscal year we received R118.3-million and the published allocation for 2015/ 2016 is R117.7-million.”
Provision had been made for a 6.79% increase in staff salaries, in line with the wage collective agreement which comes to an end next month. The increases, together with the filling of vacant posts, will push the salary budget to R172.9-million – R39.6-million more than the provision for the 2014/ 2015 financial year. “Electricity purchases will cost us R188.7-million during the 2015/ 2016 financial year. During the current financial year we have seen a reduction of electricity loss- es. Our losses currently stand at 31% and we anticipate a further reduction which will at least contribute towards alleviating some of the electricity purchases budget.”
According to National Treasury guidelines, 40% of a municipal budget should be allocated to the renewal of infrastructure instead of new infrastructure. During the current financial year only 22% was allocated to projects with a renewal component. “R11-million has been allocated towards the completion of the intermodal taxi rank. A further R14-million will be allocated in the next financial year. R11-million will go towards the community lightning programme with a further R4-million in the next financial year. Sport fields will receive R3.4-mil- lion with a further R29-million in the 2016/2017 financial year.”
R6.1-million has been allocated for the construction of cemeteries in Ilinge, Whittlesea and Lesseyton while community halls will be constructed in wards one and 17 at R5.8-million. The upgrade of rural gravel roads will receive R8-million, R2.2-million for the fencing of grazing camps while R800 000 will be used for construction of shearing sheds. Small business centres will be revitalised at R350 000. Surfacing of Lukhanji roads will get R12.5-million, electrical infrastructure R22.7-million and the purchase of two refuse trucks will cost R4.2-million. The budget for the mayoral car has been set at R1-million.