Johannesburg - The city of Ekurhuleni’s comparative cost of services is the lowest in the country, meaning that the city is the cheapest type municipality to live in.
This is according to Ekurhuleni's member of the mayoral committee for finance Moses Makwakwa, who was delivering his 2016/17 budget speech on Thursday.
He said this finding was made last year in an independent report by the South Africa Cities Network.
Makwakwa announced that assessment rates would increase by 7.5 percent.
This is lower than the average rate increase of other metros of 8.1 percent.
Based on Nersa's approval, the electricity tariff will increase between 7.64 percent and 9.4 percent, depending on the consumption level.
Other increases are as follows: water will increase by 9 percent and sanitation by 9 percent.
Refuse removal goes up by 8 percent for both business and residential; and there is a 0 percent increase in cemetery fees for Ekurhuleni residents, but 10 percent for outsiders. There will be no increase in the following services:
Library and information services.
Use of arts, culture and heritage facilities.
Sport and recreational facilities.
However, on the downside, the population is estimated to increase by an average of 2.5 percent between 2014 and 2019, with a proportionally low disposable household income, Makwakwa said.
“Added to this is the declining contribution by the manufacturing sector, with low export earnings. This is despite concerted government interventions to rejuvenate the sector through the revitalisation of the manufacturing and industrial sectors,” he said.
“Although there are concerns, the economy has been resilient and the city is working hard to improve its growth prospects and to build investor confidence.
“Despite this, we have maintained a pro-poor orientation on public spending to improve social development through the sustainable provision of basic services.
“This is due to our prudent and sustained macro-economic policies, as well as consistent and sound budgetary policies,” he said.
Makwakwa added he had commissioned the Department of Finance to conduct value-engineering processes on revenue in energy and water infrastructure, to minimise and eventually reduce leakages. “This is triggered by the continuous decline of our revenue, especially in electricity,” he said.
Makwakwa said the city would be clamping down strongly on illegal outdoor advertisers.
“It is also a matter of grave concern that the city is losing income on illegal outdoor advertisements. We have identified strategic areas for outdoor advertisements to be released to the market soon.
“In the same vein, we have set revenue targets for the department of city planning in this area,” he said.
The number of accounts had risen from 170 000 in the last financial year to 250 000. Makwakwa said payment had been made easier through the introduction of the e-Siyakhokha payment channel.
“We are committed to liberating our people from the bondage of service delivery blockages, poverty, unemployment, inequality and economic deprivation.”
@annacox
The Star