Mayor presents R41.6bn eThekwini budget

eThekwini Metro mayor James Nxumalo presented a R41.6 billion budget for the 2016/17 financial year, with huge rates rebates for the poor.

Durban – eThekwini Metro Municipality mayor James Nxumalo on Tuesday presented a R41.6 billion budget for the 2016/17 financial year, up from R39.1 billion the previous year.

Presenting the budget at the Durban City Hall, Nxumalo said it took account of expected constraints caused by the current economic climate but also aimed to address the needs of the city’s residents.

The city would spend R6.7 billion on capital projects while R34.9 billion would be spent on operating costs in the coming year.

Not only would the city’s ratepayers see their rates increase, their water and electricity tariffs would also increase.

The budget was the last that Nxumalo was likely to present as he is no longer the chairman of the African National Congress’s eThekwini region, and therefore unlikely to be mayor of the metro following the August 3 local government elections.

“We were here deployed and it was an honour to serve,” Nxumalo said to loud cheers as he finished his speech.

Durban’s residents would see their property rates increase by 6.9 percent, while residential customers would pay 12.5 percent more for water and businesses would pay 15.9 percent more for water.

Houses valued below R185 000 will not be liable for rates while child-headed households and those headed by pensioners, disability grantees, and the medically boarded will not be liable for rates on properties valued at less than R460 000.

Electricity tariffs would increase by 7.64 percent, while sanitation costs would increase by 9.9 percent and refuse removal would go up by 7.9 percent.

Nxumalo said the increases needed to be viewed in light of the increases levied by Eskom and Umgeni Water.

“The adverse impacts of the current economic climate coupled with unfavourable external pressures on services, make tariff increases higher than the CPI levels inevitable,” he said.

He said that over the next three years the municipality would spend R3.3 billion on housing and ?R3.6 billion on road upgrades while R1.7 billion would be spent on electricity infrastructure.

Most of the opposition parties criticised the budget, giving specific focus to housing, the municipality’s police force and the growing rate of water loss.

Wayne Thring from the African Christian Democratic Party said it was “scandalous” that water loss rates had increased from 18 percent to 40 percent since 2000.

The Inkatha Freedom Party eThekwini leader Mdu Nkosi questioned: “The mayor says this government has delivered, but why are there so many service delivery protests?”

African News Agency