eThekwini Municipality Mayor, Mxolisi Kaunda has unveiled a 10-point plan to institutionalize the New Normal occasioned by the COVID-19 pandemic and drive radical socio-economic transformation during the tabling of the City’s 2021/22 Budget today.
Through the R52.3 billion budget the city aims to implement, among other things, the industrial strategy to reposition Durban as a competitive global port city as well as drive the social procurement policy framework, which comprises the allocation of 30% of the city’s procurement spend for the benefit of Co-operatives and Social Enterprises.
The Mayor also highlighted several initiatives that demonstrate that the Municipality is committed to creating stability and giving hope to residents, amid the precarious financial situation facing residents in the wake of Covid-19.
The 2021/22 Budget comprises an operating budget of R47.0 billion and a capital budget of R5.3 billion. This budget is based on an improved collection rate by the city of 95%.
CLEAN ADMINISTRATION
Mayor Kaunda said that the current administration remains committed to clean and transparent governance and that service delivery is at the forefront of all activities. “You will recall that last year, the Auditor-General’s (AG) report indicated that the city incurred irregular expenditure to the value of over R2 billion. The recently released AG report shows that the City continues to perform positively, financially, with an unqualified audit opinion and we have managed to significantly reduce irregular expenditure by over R1 billion.
The Mayor assured residents that the City will continue to spend their hard-earned money prudently. “In this regard, we intend to keep the lights on and taps running uninterrupted, ensuring that residents get full value for money.”
In addition, through the hugely successful, first-of-its-kind Economic Recovery Plan, the City has been able to attract over R3.4 billion in foreign direct investment through catalytic projects.
PUBLIC CONSULTATION
The Municipality hosted budget hearings in six regions where various community structures fully engaged with the council and provided input on the 2021/22 budget. The regional hearings ensured there was maximum reach to communities as the City also partnered with both mainstream and community media. Various sectors of society including business, amaKhosi and people with disabilities, were also consulted.
Mayor Kaunda said: “We assure you that all the contributions made by communities and various stakeholders have been considered in this budget. As a responsive government, we have increased the zonal blocksum of R330m to R990m over the Midterm Review. This provision will be utilised to address concerns relating to pedestrian bridges, traffic calming measures, health hazards, sidewalks, passages, and other critical issues, more especially in the underdeveloped areas.”
TARIFF INCREASES
Tariff increases for the 2021/22 financial year have been set at the lowest percentages ever seen in the last five years. In his address, Mayor Kaunda explained that the Eskom bulk electricity increase and the Umgeni Water Board bulk water increase are out of the City’s control, but the plight of residents have been taken into consideration. “Despite all the challenges, we have tried to keep the increases to affordable levels considering the tough economic climate facing our residents,” he said.
Property Rates: 4.9%.
Refuse : 4.9%
Water: 8.5%
Sanitation: 8.5%
Electricity: 14.59%
SERVICE DELIVERY TARGETS
The Municipality has prioritised various service delivery targets in the 2021/22 budget.
• Build 5064 houses
• Facilitate 2500 water connections
• Facilitate 8000 electricity connections
• Facilitate 2500 sewer connections
• Lay 37 km of gravel to black-top roads
Building safer communities remains a priority. This ultimately creates a positive investor climate in the City. Crime statistics show that Umlazi and Inanda continue to be hotspots in eThekwini. This has further fuelled the city’s resolve to create plans to fight crime, including investing R69 million for smart policing.
Mayor Kaunda explained: “Apart from crime Webinars, we also launched programmes aimed at dealing with the scourge of Gender-Based Violence (GBV). The main purpose of these programmes is to call on men to be part of the solution in the fight against GBV. “Working with law enforcement, we have undertaken joint intelligence-driven operations in crime hotspots. There are specialized teams deployed in these hotspots to tackle crime,” he said.
Recently, the Community Safety Forum and Local Drug Action Committee was launched. In additions, street lighting will be improved, while an amount of R69m has been allocated towards strengthening smart policing technology.
The Mayor thanked all residents and stakeholders for participating in the budget process and bade a fond farewell to the City’s outgoing Chief Financial Officer, Dr Krish Kumar, who will be retiring next month after a service period spanning decades.