City of Ekurhulen projects R1.2bn in revenue collection
Johannesburg - The City of Ekurhuleni is projecting R1.2 billion in revenue collection due to the Covid-19 pandemic.
A presentation mayor Mzwandile Masina made to the virtual meeting of the cooperative governance and traditional affairs portfolio committee on Wednesday showed that the city's targeted revenue collection for the financial year was 94% but the projected collection stood at 90%.
Masina revealed that the city collected 86.9% in March, which had dropped to 67.2% in April and projected 65% in May.
He expected the revenue collection to pick up in June to 70% given the directive by the Department of Cooperative Governance and Traditional Affairs to enforce credit control measures.
Masina said the city has shelved the customer relief proposals after it was told a meeting with Cogta Minister Nkosazana Dlamini Zuma not to introduce them.
He said the city was hoping to benefit from the R20 billion package announced by President Cyril Ramaphosa for municipalities.
"We believe that it can have a role to play in dealing with revenue loss."
The city has made an application for R32.7m from the disaster management relief fund in April and a response was being awaited.
Masina was convinced that the disaster management relief fund would ease some pressures from revenue collection decline.
He said the collapse of revenue was a worry to the city and that it was not going to be easy.
The mayor also said revenue decline was a reality.
"We have to continue with credit control in order to see the situation."
Masina said they continued to pay Eskom and Rand Water hoping to recover monies from residents for services rendered.
"We have a responsibility all of us to acknowledge that fact and devise strategies," he added.