According to the DA, this will be done through three simple and effective methods, namely revenue enhancement, cost-cutting and eradicating corruption.
The proposal was delivered by the DA shadow MMC for Finance in Ekurhuleni, Clr Edward Taylor, who has been a councillor since 2000.
According to Taylor, fixing the problems in these three broad areas, which underpin the entire budget, has proven successful where the DA governs and, if implemented in Ekurhuleni, would ensure a well-run city.
“The Ekurhuleni metro’s budget is hindered by loss of revenue of approximately R1.2-billion due to uncollected rates and service charges and long-outstanding debts from other spheres of government and local businesses.
“It is vital that the metro increases its collection rate from the existing 87 per cent to, at the very least, its own target of 93 per cent or ideally the DA’s proposed target of 95 per cent.”
Taylor mentions that a fair, consistent, and firm debt collection drive would enable the metro to vastly increase revenue collection which, in turn, would directly benefit every resident in the metro.
The additional revenue collected under this plan can improve service delivery, increase capital development and even provide for lower tariffs.
According to Taylor, the most obvious way to save money in a personal budget rings for a major metro budget – cut the costs on unnecessary line items.
“There are several obvious areas in which the metro can tighten its belt such as dispensing with extravagant events, gala dinners, expensive study tours and excessive overtime salaries, all of which can be reined in quickly and significantly.
“Steps would be taken to ensure that public money is no longer spent on party political events and campaigns. Only events that provide value will be celebrated and even then, not in an ostentatious manner.
“Further, the DA budget would rewrite the handbook for the Mayoral Committee and senior managers, which would curb costly protection services for officials and councillors where not absolutely necessary.
“Every department and senior post would be analysed to establish its value to resident, directly or indirectly, and superfluous departments or positions would be closed or absorbed into other structures.”
Other cost-saving measures would include radical reductions in water and electricity losses, coupled with closer monitoring of over-consumption of services by registered indigents.
“Addressing these sources of waste would yield hundreds of millions of rands of available cash to fund the metro’s programmes.”
Furthermore, Taylor says that corruption is a poison that taints every sphere of government and it costs Ekurhuleni’s residents not only money, but basic services as well.
“The current closed tender process, excessive wasteful expenditure and lack of consequence for those involved in fraud must be stopped.
“Fortunately, the means of stopping the most serious and expensive corruption is a simple matter of opening the tender process to public scrutiny, ensuring rapid investigation of corruption allegations with swift justice if found guilty, and would speed up disciplinary processes, and stop long suspensions on full pay as the DA has done in Cape Town and the Western Cape and would do here.”
According says Taylor that once these three pillars of Ekurhuleni’s budget have been brought in the line and the metro has more liquid cash to spend on its operating budget, it will in turn have more capacity to borrow money to fund capital projects.
“The overall effect, as proven by Cape Town, would be a fiscally well managed city that attracts investors who create the vitally needed jobs. This is needed in an industrial city like Ekurhuleni with the highest unemployment rate in Gauteng.”
