Finance committee welcomes Ekurhuleni budget
The Ekurhuleni Finance Committee has welcomed the Medium-term Revenue and Expenditure Framework for the period 2014/15, as tabled by the MMC for Finance, Moses Makwakwa, during the budget speech on Thursday, May 29.
Clr Neil Diamond, chairperson of the committee, says all departments need to address the serious issue of under-spending of grants and capital, as this is a core drawback in reducing the backlog of eradicating the inequality of the past.
“Reading, understanding and analysing the budget remain a challenge for the ordinary residents and the man on the street and we must address this going forward,” said Diamond.
Diamond added that the committee applauds the commitment of the Executive in keeping tariff increases as low as possible.
“In this time of economic pressure and the reduction of our average increase to 7.3 per cent in 2014/15, down from 8.6 per cent the previous year, should be viewed in context with other cities. The average increase for metro’s in Gauteng is higher than 7.3 per cent, and communities in Cape Town is 7.6 per cent, making Ekurhuleni a leader in fighting inflationary pressure and keeping tariff increases as low as possible,” he pointed out.
Diamond said he was very concerned about the proposed tariff increases in the Draft Budget, and how inflationary pressures would challenge the livelihood of residents.
“It is clear that he public participation process yielded results and the final tariff proposals are a clear commitment to balance inflation with affordability,” added Diamond.
Ekurhuleni Tariff increases are as follows:
* 7.5 per cent on assessment rates.
* Between 6.3 per cent to 7.3 per cent increase on electricity is well below the increase proposed by National Energy Regulator of South Africa (Nersa) and lower than Johannesburg and the City of Cape Town.
* 8.10 per cent increase on water for both residential and business, is lower than the increase in Cape Town and a big improvement on the previous 9.82 per cent.
* Eight per cent on sanitation for both residential and business.
* An increase on between 2.4 per cent to 7.1 per cent for residential waste management is also lower than Johannesburg, Tshwane and the City of Cape Town.
* Zero per cent increase on cemeteries – a clear indication that through public participation communities can give input and make this a budget of the people.
“There are still many service delivery challenges in Ekurhuleni; it is clear that the budget will enable the executive and officials to continue providing sustainable and quality services.”
