DA unpacks metro’s service delivery and budget implementation plan
Clr Bruce Reid, Shadow MMC for Finance in Ekurhuleni, has commented on Ekurhuleni’s unaudited fourth quarter service delivery and budget implementation plan (SDBIP).
The year under review is July 2016 to June 2017, which encompasses the entire financial year.
According to Reid, the capital budget for the financial year was R5.1-billion
“This was financed by loans of R1.8-b, national and provincial grants of R1.8-b and internal sources were R1.4-b,” he said.
Reid said the municipality was only able to spend R4.2-b (or 83.25 per cent) of the budget.
The major departments where money was spent were:
- Human settlements: R606-million
- Energy: R579-m
- Roads and storm water: R518-m
- Transport: R458-m
- Water and sanitation: R268-m
- Disaster and emergency management services: R170-m
- Economic development: R143-m
- Waste management: R121-m
- Sports, heritage, recreation, arts and culture: R108-m
- Health and social development: R79-m
Meanwhile, the income for Ekurhuleni for the year was budgeted at R34.245-b.
The main sources of revenue are:
- Electricity: R13.4-b
- National and provincial grants: R5.1-b
- Property rates: R4.6-b
- Water: R4.2-b
- Sanitation: R1.6-b and
- Refuse: R1.4-b
“The actual income received was R33.494-b which is R750-m lower than the budgeted figure.
“Water and sanitation were down by R354-million and electricity sales down by R130-m. It is noted that there was not an equal drop in electricity purchased from Eskom. This worryingly indicates that there is increased electricity theft in Ekurhuleni.”
The expenditure for the year was budgeted at R34.228-b with the major expenditure items being:
- Electricity: R13.3-b (Eskom)
- Water: R4-b (Rand Water)
- Waste water management: R732-m (ERWAT)
- Solid waste: R1.2-b
- Employee costs: R6.3-b and
- Depreciation: R1.9-b
Reid highlighted that Ekurhuleni only managed to spend R33-b last year, which is a massive R1.1-b less than the budget.
“The biggest area of underspending was on maintenance, which was R504-m under. The result of this can be felt throughout the metro where our CBDs and infrastructure are in desperate need of upkeep.”
Meanwhile, in terms of maintenance:
- Energy underspent by R114-m
- Water and sanitation underspent by R115-m
- Roads and storm water underspent by R92-m
- Real estate underspent by R43-m
“The collection rate for the year was only 92.05 per cent of services invoiced. This leaves a debtors book of R13.33-b of which R6.493-b (or 48.8 per cent) has been provided for as a bad debt.
“As of June 30, Ekurhuleni had 53 days of cash on hand with investments of R2.3-b and bank accounts of R6.2-b.
“The unencumbered cash is R4.7-b, so Ekurhuleni spends R85-m per day,” Reid said.
