Ekurhuleni metro’s latest budget includes an increase of 7.5 per cent for assessment rates.
This was revealed during the City’s budget speech presented by the MMC for Finance and Economic Development, Doctor Xhakaza, at the Germiston Council Chamber on May 23.
According to Xhakaza, this is consistent with the consumer price index of 5.2 per cent plus 2.3 per cent for real growth.
According to the MMC, electricity tariffs will only be increased by 13.07 per cent and 13.87 per cent, depending on the usage.
“The National Energy Regulator of South Africa (Nersa) has granted Eskom an increase of 15.63 per cent in March 2019,” said Xhakaza.
“This means the City will absorb, and not pass to consumers, the difference in percentage points between the two increases.”
Water tariff will increase by 15 per cent, which is equal to the increase pronounced by Rand Water.
Sanitation tariffs will increase by 11 per cent, which is informed by the cost of sewer purification processes undertaken by the East Rand Water Treatment Company.
The refuse removal tariff will increase by 7.5 per cent for all users due to the main cost drivers of the service.
Furthermore, Xhakaza said there have not been tariff increases for cemetery and crematoria over the past five years.
According to him, due to the need to maintain the cemeteries, a nominal tariff increase of 5.2 per cent for residents and 6.5 per cent for non-residents has been effected.
Operational expenditure
Xhakaza presented an annual budget of R48.9-billion for 2019/20 financial year, with an operating expenditure of R41.5-b.
The operational expenditure is funded as follows:
• Revenue generated internally – R32.82-b
• Operating grants – R5.9-b
• Capital grants – R2.78-b
He also made mention of proposed developments for Boksburg, which includes the Reiger Park Fire Station and a facelift to the decaying urban centres in Boksburg.
His speech focused on the City’s pro-poor agenda, fiscal prudence and additional revenue sources, tariff increases, consolidation of social packages and investment in capital infrastructure for economic stimulation.
The budget was delivered on the back of achievement of 94 per revenue collection rate from the annual billing.
The collection rate for revenue services is at 94 per cent on its annual billings.
Xhakaza said among other achievements is the unqualified audit, with a reduction in the number of factors of concern to the auditor-general. Some of the key highlights include the zero unauthorised expenditure, zero fruitless and wasteful expenditure, 42 per cent reduction in irregular expenditure and clean audit on performance information.
For more #hyperlocal news at your fingertips, visit Benoni City Times, Springs Advertiser, Brakpan Herald, African Reporter and Kathorus Mail.
