The DA commends the Efforts of the Multi-Party Coalition in the drafting of a truly Back-to-Basics Budget for the 2023/24 Financial Year

by Cllr. Alta de Beer — DA PR Councillor in Ekurhuleni

Date: 4 April 2023

Release: Immediate

Type: Media Statement

The Democratic Alliance (DA) in the City of Ekurhuleni (CoE) welcomes the Draft Medium-Term Revenue and Expenditure Framework (MTREF) for the 2023/24 to 2025/26 and the revised 2022/23 to 2026/27 Integrated Development Plan (IDP) as approved in the 30th of March 2023, Ordinary Council Meeting. The DA fully appreciates the enormous difficulties under which the Multi-Party Coalition presented this draft budget given the current economic outlook of the country and the effects of the global cost of living crisis.

Residents can look forward to the following proposed budgetary allocations:

• Cutting of the Mayoral discretionary fund of R1.2 billion as allocated by the previous administration to R1.5 million. The surplus of the funds has been redirected to reduce service delivery backlogs in the City.
• R54 million for the purchasing of new trucks and waste compactors to improve refuse removal and stabilise waste collection across the City. The increase in budget will also go a long way in ensuring that the City’s 47 IPPs are brought online amid the country’s loadshedding crisis and to reduce our reliance on Eskom’s supply by more than 25%.
• R360 million for the fixing of potholes in the City,
• R11 million for the purchase of additional fire engine trucks,
• Over R1 billion increase in the allocation to the energy department to address maintenance and repairs of infrastructure. 30% of the maintenance budget has been allocated to the energy department and another R1.6 billion for the building of substations, the electrification of informal settlements, and the repair of streetlights.
• R7 million for the upgrading of the Call Centre.

Another welcomed decision of the Multi-Party Coalition is the redirecting of an estimated R15 million from Real Estate for refurbishment of the Executive Mayor’s Office towards service delivery enhancement programmes. The re-allocated funds will respond to the following immediate needs within departments to meet the City’s back-to-basics mandate:

• R11 million to be allocated to the Department Disaster and Emergency Management Services for the procurement of specialised vehicles;
• R2.2 million to be allocated for the procurement of specialised vehicles and equipment, this includes the purchasing of road graders;
• R748 000 to be allocated to the Health Department for the purchase of specialised equipment to improve health services.
• R1 million for tools and special equipment for the parks department.

The above reallocation of mayoral funds shows the intention of the DA and the Multi-Party Coalition to prioritise accelerated service delivery to residents as opposed to the funding of vanity projects in the City.

Tariff increases is another highlight of this draft budget that residents can look forward to an includes the following:

• Property Rates — In the previous financial year there was no increase to the property rates, due to the property valuation roll adjustments. The proposed increase is 4.4% for the 2023/2024 financial year.

This is below the 6.9% inflationary increase as guided by National Treasury. Homeowners will therefore continue to receive the assessment rate exemption on the value of their homes.

The budget proposes that the first R250 000 is exempted from assessment rates. Pensioner rebates remains applicable in the proposed budget.

• Refuse removal — the proposed increase is 5.3% this is lower than the previous year increase of 7%.
• Water increases — proposed increase of 12% is as guided by Rand Water and out of the control of the City.
• Electricity increases — proposed increase ranges between 15% to 18.65%. This increase is as guided by NERSA and is beyond the control of the City.

On the 13th of January 2023, the former Executive Mayor, Ald. Tania Campbell, expressed concern about the 18.65% tariff increase approved by the NERSA and the potential impact it may have on the already stretched residents of Ekurhuleni, more especially the poor and indigent households. The Executive Mayor subsequently had a meeting with Eskom and expressed her disappointment in the increase given that residents are already plagued with 8- 10-hour load-shedding and unplanned Eskom power cuts. Former Executive Mayor Campbell further requested that National Government investigates alternative funding models to avert the unavoidable NERSA tariff increase. If NERSA heeds our call to reduce the increase, the City will reduce the tariff increase accordingly.

• Sanitation — In this proposed budget sanitation will not be linked to water consumption or Rand Water tariff increases as it was done in the past. The proposed increase is 5.3% versus the previous year’s increase of 11%.

As indicated above the former Executive Mayor and Executive have kept the increases that are in the control of the City below the inflation rate of 6.9%. The City has committed in the draft budget to continue the Council’s fight to assist the poorer communities in the City. Provision has been made for the supply of free basic services and social contributions to deserving households that includes registered indigent households.

In order to improve the City’s liquidity, increases to the operating expenditure were kept at the minimum with employee related costs being the only item that will see a proposed increase of 6.9%. The City will also have to tighten its belt around expenditure as there is no room in the draft budget for over expenditure especially around overtime.

To improve the City’s current financial position the following proposed decisions are included in the budget:

• No new projects unless funded from grants.
• No projects to be funded from external Loans.
• No loans to be taken in the new financial year by the City.

The proposed budget is fully funded and is based on a 90% collection rate. The DA would therefore like to encourage residents to as far possible try and meet their payment obligations for the services rendered as the budget can only be funded with adequate revenue.

The DA would also like to encourage residents to participate in the Budget/ IDP review process by providing comments at the scheduled public meetings that will take place from April 2023, which will also be accessible on-line and on social media.

Your input and comments are important to pave the way to an improved budget process. If suggestions cannot be accommodated within the confines of this budget, it can be considered in the adjustment budget or the review of the budget in the following year.

Although the Multi-Party Coalition is no longer in the governing seat, the above budget shows the commitment of the DA and its coalition partners to improve service delivery across the City. The DA would like to thank the Executive Mayor, the Executive Committee, the coalition partners, as well officials who assisted with the compilation of the proposed budget. We hope that the budget will remain as far possible unchanged by the new incoming Executive so that the residents of Ekurhuleni can reap the benefits of a budget that truly centered towards ensuring a back-to-basics approach to service delivery.

Cllr. Alta de Beer

DA PR Councillor in Ekurhuleni

082 777 1406