Council has unanimously approved the City’s budget of R35.8bn for the 2014/2015 financial year. Mayor James Nxumalo tabled his third Medium Term Budget for adoption today, 29/05/13, at a special sitting of Full Council in KwaNyuswa, following an extensive consultation process held in April and May that saw the attendance of more than 20 000 citizens, businesses and other stakeholders in public meetings.

Mayor Nxumalo said this is a balanced budget which looks after the needs of those still wanting service delivery and the maintenance of existing infrastructure and services. It caters for service delivery needs, economic development and job creation.

“In drawing up this budget we were always guided by the need to respond to the present conditions that require us to increase our pace of service delivery, grow the economy and create jobs. Our theme is, “Consolidating our gains to fast-track service delivery and meet people’s needs’.”

“In the next five years we should continue to demonstrate to our people that our democracy will be more durable and responsive to the needs of the poor as we progress towards our 2030 vision of becoming Africa’s most caring and liveable City.”

The proposed R35.8bn budget for the 2014/2015 financial year comprises of a R5.7bn capital budget that continues to reflect consistent efforts to address backlogs in basic services and the renewal of the infrastructure in the City and an operating budget of 30.1bn that will make provision for the continuation of the services provided by the Municipality.

Mayor Nxumalo emphasised that the Municipality will prioritise the speeding up of service delivery and create job opportunities in response to calls by President Jacob Zuma and Premier Senzo Mchunu for all levels of government to fast track the delivery of people’s needs.

Some of the major capital programmes in the medium term capital budget are:

• R3.7 billion is set aside for addressing Infrastructure Backlogs
• R2.3 billion for low cost Housing and Infrastructure
• R3.1b for EThekwini Transport Authority (Including PTIS) for implementation of the IRPTN
• R762.9m for Electricity Infrastructure
• R815m is set aside for addressing Community Service Backlogs
• Water Loss intervention programme has an investment of R 185m
• Roads Rehabilitation and Reconstruction, and new access roads R1.3bn
• Wastewater Treatment Works: Upgrades/Expansion R1.5b
• Northern Aqueduct Water Project R 296.9m
• Western Aqueduct â€" Water - R980m
• Solid Waste fleet replacement - R160m
• New Central Library - R348m
• Ablution Blocks-Upgrade in Informal Settlements - R760m
• Town Centre Renewals â€" Nodal developments - R404m

Some of the Key Capital Outputs for 2014/15

• 8 500 new housing Units
• 650 former R293 Units to be upgraded
• 2000 new electricity connections (credit meters)
• 12 000 prepayment meter connections to informal settlements
• 488 additional ablution facilities to informal settlements per year
• Expansion and Upgrades to 6 waste Water treatment works
• 11.8 km of unsurfaced to surfaced roads
• 25.2 km of sidewalks
• 440 stormwater systems upgrading
• Increasing water supply capacity through the Western and Northern Aqueducts

Mayor Nxumalo added that youth development will be prioritised with the Youth Office expected to be established in the Mayor’s Office. He said youth issues will be mainstreamed in all units within the Municipality with the view to accelerate programmes of youth development and empowerment in particular skills development.

“Skills development and creation of opportunities for experiential training remains central in our response to the challenge of youth unemployment. We have set aside a total budget of R38.5m for skills development and job creation projects throughout the Municipality.”

“We are increasing learnerships through ensuring that all major projects incorporate skills development opportunities for the youth as participation goal. The budget for learnerships and apprenticeships is R4.9m and R7.4m respectively. The budget for skills programmes is R1.5m and R20.4m is available for the cooperatives programme,” he said.

The Mayor added that the Municipality will invest a further R1m to assist students with registration fees for tertiary studies next year. Early this year the Municipality assisted students who were battling to register for their studies due to financial constraints.

Mayor Nxumalo also listed a number of major investments to drive the City’s economic growth which are mainly anchored around the expansion of the Port of Durban and Dube Trade Port.

“According to the latest eThekwini Investment Dashboard, the number of construction jobs spanning a period of 20 years equates to 3.8 million with the number of permanent jobs at approximately 600,000. The total investment value of all projects is approximately R 507 billion with expected rates revenue of R 8.5 billion,” he said.

A social package totalling approximately R3.1 billion rand is also catered for in this budget and is funded mainly from the equitable share grant.

Free Basic Services:

• Properties valued up to R 185 000 will be exempt from paying rates. All other properties valued above R 185 000, the first R120 000 no rates charged
• Pensioners, child-headed households, disability grantees and the medically boarded are exempt from paying rates on the first R 460 000 of their property value (This amount is inclusive of the R 120 000 mentioned above). Rebate increases from R 259 per month to R 278 per month.
• The first 9kl of water is free to households with property values under R 250 000.
• The first 50kwh of electricity is free to residents using less than 150kwh per month in Eskom reticulated areas
• The first 65kwh of electricity is free to residents using less than 150kwh per month in eThekwini reticulated areas
• Residential property valued up to R 250 000 are exempt from domestic refuse removal tariff. In addition, a free basic refuse removal service is also available to indigent consumer units living in rural, informal settle
• The first 9kl of effluent disposal is exempt for all properties with values under R 250 000.

Tariffs

Tariffs have been set at affordable percentages. When rates, tariffs and other charges were revised, local economic conditions, input costs and affordability of services were taken into account to ensure financial sustainability in the City and investor confidence from business. Many opportunities are presented in the budget that will improve growth and enhance the rates base. Certainly this year’s single digit rates increase of 6.9% marks a great relief for ratepayers especially against a back ground of economic turbulence and fluctuations experienced presently.

Tariff Increases are as follows:

• Electricity â€" 7.39%
• Water â€" domestic 9.9%; Business: 12.9%
• Refuse removal - 7,9%
• Sanitation - 7,9%
• Rates â€" 6.9%

Slums clearance, eradication of transit camps, housing, provision of interim services to informal settlements and water supply are among the major projects that will receive priority in the coming financial year.

“A budget of R2.3 billion is set aside for low cost housing and related infrastructure. In addition, projects to upgrade the different Community Residential Units (CRUs) are underway in all CRUs in eThekwini. These include KwaMashu hostel with a total allocation of R41.7m, Glebelands (R15.5m), SJ Smith (R23.9m), Umlazi T (R43.7m), Kranskloof (R14.9m), Klaarwater (R28.2m), Dalton (R17m), KwaMakhutha (R14.9m) and Jacobs (R10.7m). This brings the total budget for CRU upgrade to over R210m,” said Mayor Nxumalo.

Mayor Nxumalo said: “I implore you fellow Councillors and officials to double your efforts in implementing our development programmes. In terms of our long term development goals, we set ourselves the target of being Africa’s most caring and liveable City by 2030. The time for action towards this vision is NOW!”

“Our term of office ends in 2016 and in the remaining period we intend to fast-track service delivery to ensure that many more of our fellow citizens can enjoy the fruits of our hard-earned freedom.”

Ends

Issued by eThekwini Municipality’s Head of Communications, Ms Tozi Mthethwa.

Contact Municipal Spokesperson Thabo Mofokeng on 031 311 4820 / 082 731 7456 or email Thabo1.Mofokeng@durban.gov.za, or Gugu Mbonambi on 031 311 4855 or 079 751 4986 email: Gugu.Mbonambi@durban.gov.za