Cape Town - The City of Cape Town is expecting R860 million
less in income but still has to find an
additional R386m to fund expenditure for the Covid-19 coronavirus
pandemic.
In explaining the readjustment of the City’s 2019/20 budget, mayor Dan Plato said the national government hasn't given any additional funding to mitigate the coronavirus crisis.
“So the City must see how it can fund what is required with a reduced budget in a sustainable manner that will not impose substantial rates and tariff shocks to residents and businesses over the medium to longer term.”
He said the R860m loss in income includes income from rates and tariffs, MyCiTi public transport fares, suspension of events by Cape Town Stadium and Cape Town International Convention Centre, and parking and development fee decreases.
“The adjustments budget (2019/20) clearly shows the Covid-19 crisis is not a once-off disruptive event. It will have long-term impacts on the City’s operations and programmes, its income sources for service delivery and on the general socioeconomic welfare of its residents and ratepayers,” said Plato.
Some of the key adjustments and additional expenditure for the current financial year (2019/20) include the reprioritisation and rephasing of projects and programmes, shifting funds within directorates, R63.5m for the provision of water and sanitation to informal settlements, where access to services is limited, is now enabled due to the national disaster declaration; R30.7m for building management, education and awareness at Community Rental Units; enhanced cleaning of homeless shelters and informal settlements; immediate procurement of personal protective equipment.
To date, 420 095 gloves, 285 760 masks (N95, FFP2, FFP1 and surgical) and 96088 units of hand sanitisers and anti-bacterial soap have been issued to members of staff; cleaning materials such as hand sanitisers, chemicals to disinfect floor areas at public transport interchanges and bus depots and humanitarian relief.
The City council has also agreed to shift R12m earmarked for community development initiatives to emergency food relief.
Deputy mayor and Mayco member for finance Ian Neilson said: “Rates and services income is the primary income source to pay for the delivery of basic and essential services. This is how the funding works for South Africa’s local governments.
"That's why rates and tariffs are so important, as the City emphasises. It does not make a profit from this income. In fact, it is not enough to deliver on all the basic and extra services that the City delivers and the shortfall is funded by other internal sources. The City is well managed so it is in a position to carry extra costs and underpayment of charges for a short while, but not indefinitely.”
@MarvinCharles17