The call
made by President Cyril Ramaphosa of “Thuma Mina” together with an emphasis to action local government’s mandate, resonated throughout the
final Budget speech 2019/20 delivered by Mayor Zandile Gumede. The City’s R50.6billion consolidated budget
was presented at a sitting of full council, on, 29 May 2019 at City Hall.
“A lot has been done and we are proud of the progress we have made.
The most important thing is that we are transforming lives and impacting
communities. Our democracy
is
growing.”
Gumede
outlined the plans for the City going forward including the catalytic projects
that will transform the Durban’s landscape and promote future growth and development.
“The catalytic projects planned for the City will have a huge
economic and social impact. This will be measured in terms of the number of
jobs created and how it supports mixed-use development by integrating
commercial and housing needs, which will generate additional income through
rates,” said Mayor
Gumede.
The
budget is a direct response to the call from communities who participated in
the two-month long draft budget consultation process.
“They came out in their numbers during our budget hearings. We must
not disappoint them by asking them to contribute and later ignore their
requests. Our people are not asking for much, they want simple things like
speed humps, fixing of potholes, streetlights, passages and cleaning of their
areas.
If we
want our people to trust us on bigger things, let us deliver on these small
things. We want less workshops and talk shops but actual delivery. We have
spoken and strategised for far too long, now it’s time for action. We have a lot of theories and documents on our
table, but less action” added Gumede.
The
budget speech also highlighted the progress made through the Radical Economic
Transformation (RET) framework through execution and monitoring of RET
projects.
The
Radical Agrarian Socio-Economic Transformation (RASET) programme was another
success brought to light that is now integrated in the structure of the
organisation, with the approval of the RASET Agribusiness Department
organogram.
In terms
of the City’s economic
development, Gumede outlined the Shape Durban initiative which is the new
inclusive economic growth plan that the municipality has developed. It is a
five year partnership that aims to build a stronger and more inclusive economy through
concrete interventions.
The
municipality has also appointed “Team Durban” that will provide strategic foreign direct investment advice and
support to the city and act as a sounding board for council leadership and the
new Invest Durban Unit on business and investment promotion matters.
Further,
the Municipality's Investment Promotion Strategy and Implementation Plan is an
integrated approach that will allow for the majority of our local citizens to
access public transport, goods and services in a cost-effective and efficient
manner and to also to respond to growing the City’s rates base. This will enable the City to meet the local socio-economic
obligations.
In her
address Gumede welcomed the announcement made by newly appointed Premier, Sihle
Zikalala on the continuation of the provision of houses and ensuring a sustainable
livelihood to all.
Over the
next few years, the Province has promised to deliver no less than 125 000
units. One of the major focus of the Premier’s administration will be to develop and implement a clear plan to
provide houses to all people who reside in transit camps.
BUDGET
FOR 2019/20
The
budget aims to facilitate and ensure the provision of infrastructure, services
and support. The budget is expected to create an enabling environment for all
residents to utilise their full potential and access opportunities. “This is action budget, it an
implementation season, an age of Thuma Mina! We want action that is our
emphasis,” said Gumede.
“The budget supports the City’s commitment to broadening service delivery, attracting investors
and expanding investment in infrastructure, within the current constrained economic
environment we are currently experiencing.”
The
Municipality has identified priority areas to be addressed during the 2019/20
financial year to ensure immediate measures to reignite development and
structural reforms over the medium term in line with the strategic vision
outlined in the Integrated Development Plan (IDP).
The
Capital expenditure is budgeted to rise to R 7.9 billion in 2019/20 and is
allocated to meeting infrastructure and household services needs and backlogs
over the medium term. About R 3.7 billion of this is directed to new housing
developments and interim servicing of informal settlements.
SOCIAL
PACKAGE
As a
caring City, provision has been made for residents who are unable to pay for
basic services. The City’s social package of R 3.9 billion for 2019/20 is partially funded
by the Municipality’s equitable share allocation of R 3.2 billion from national government.
The basic social package aims to help more vulnerable residents by supporting
them with basic services and also by providing them with rates relief in the
form of rebates or discounts. This is an affirmation of the Municipality’s commitment to push back the frontiers
of poverty by providing support to residents who cannot afford to pay, because
of adverse social and economic realities said Gumede.
The
social package is outlines as follows:
Assessment
Rates
Residential
Properties valued up to R 230 000 will be exempt from paying rates. All other
properties valued above R 230 000, the first R 120 000 no rates charged.
Pensioners,
child-headed households, disability grantees and the medically boarded are
exempt from paying rates, with the maximum rebate not exceeding R 4 373.
No rates
levied on the first R 30 000 value of vacant land and Outside the Urban
Development Line
Water
The first
6kl of water is free to households with property values under R 250 000.
Electricity
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
Refuse
Removal
Residential
property valued up to R 250 000 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 settlements and non-kerbside
residents.
Sewerage/Sanitation
The first
6kl of effluent disposal is exempt for all properties with values under R 250
000. In addition, a free basic service is also available to indigent consumer
units with VIP’s, urine
diversion toilets and in informal settlements serviced by means of a
toilet/ablution block within 200m.
TARIFF
INCREASES
As a
caring city, every effort has been made to cushion the ratepayers and customers
under the current state of the economy. The rates increase of 6.9% is about the
lowest in the country, especially when compared to Johannesburg (11.7%) and
Cape Town (averaging about 9% revaluing of properties)
The
electricity tariff increases of 13.07% are an indicative increase due to the
15.69% increase expected from Eskom. However, should NERSA further review the
Eskom increase, the City will also review the tariffs.
Water
tariff increase of 15% for domestic consumers and 15.5% for business are based
on the Umgeni Water Board increase of 9.6% and takes into account the
additional capital expenditure on Water in terms of the rollout of the Western
Aqueduct, huge urbanization increase trends, provision of ablution facilities,
as well as free basic water. The sewer tariff has been contained to 9.9%
despite similar challenges to water in terms of increased service delivery
demands, capital expenditure, ablution blocks and additional servicing of pit
latrines.
The 9.9%
refuse tariff increase is due to additional areas being serviced, additional
cleaning of the beachfront, CBD, and townships, and hence the increase above
CPI could not be avoided.
JOB
CREATION, SKILLS, POVERTY ALLEVIATION & YOUTH DEVELOPMENT
Through
township renewal projects, the City has succeeded in bringing economic
opportunities and job creation closer to the people.
The
2019/20 budget makes provision for the continuation of following projects:
- A
capital budget provision of R9m, and an operating budget of R6.8m has been made
for the Agri-park in the 2019/20 year. To create 19,925 jobs over 5 years.
- The
Zibambele Programme (R 101 m) benefits over 6 500 of the City’s most destitute citizens
-
Sihlanvimvelo stream cleaning (R 39.7m) – over 500 jobs created.
- 1 500
caretakers employed at ablution facilities with a further 70 to be employed as
further ablution facilities are completed
- 1 600
people employed by DSW utilizing the EPWP grant. Target to create 25 855 work
opportunities.
- Use of
1 483 plumbing contractors on a rotational basis to undertake water related
services
- 17
major contractors employing about 1 800 people for refuse removal services
- 140
community based contractors utilized in the roll out of rural water and sanitation
projects
- A
provision of R 87.7 m has been made to increase the number of soup kitchens
from 74 currently to 92. The main aim is to have 1 soup kitchen per ward. About
450 beneficiaries are served in each soup kitchen site.
- 426
Agro Ecology community gardens. Total Agricultural Operational Budget of R
31.3m. Total Agricultural Capital Budget of R 19,8m
- Youth
Development initiatives for the 2019/20 year amount to R 6.2 m trainee and
graduate trainee bursary/loan student programs. In addition there is provision
of R 19.5 m in respect of other youth development initiatives.
- 10
graduate engineers employed under the Water mentorship program
The
following have been achieved through the eThekwini Municipal Academy (EMA) and
has benefitted a number of young people:
- Work
experience training to 1 118 students
-
Apprenticeships – 801
- Skills
Programmes – about 1 077
learners have benefited
-
Learnerships – about 371
learners
-
Bursaries awarded to 120 students
-
Financial relief to 138 students towards their university fees
- We have
rolled out 31 Career Expos and 30 Life Orientation educators trained
- Our
Career Expo and Youth Employability indaba attracts more exhibitors and
visitors from schools, communities, corporate and government entities.
- Successful
Girls Leadership Camp in Ntshongweni Dam last year.
CLIMATE
CHANGE
In
response to climate change and in light of the recent devastating floods the
City will implement tangible initiatives to protect its citizens as well as its
economic investments.
The City’s Disaster Management and Emergency
Control operates on a 24/7 basis to provide services in terms of Disaster
Management Operations, Emergency call taking,
Dispatching
of all Emergency Services, CCTV monitoring and programs such as risk assessment
and risk reduction interventions.
A provision
of R10m has been made in the operating budget for additional staff and general
expenses and a further provision has been made in the Operating budget for
R9,3m for
additional Fire and Emergency staff.
Gumede
concluded her address by reaffirming her commitment to work together with all
stakeholders and make eThekwini the best city to live in.
The
Municipality's budget for the 2019/20 financial year was approved by Council.
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