By Lehlohonolo Lehana.
The cash-strapped City of Tshwane Finance MMC Jacqui Uys tabled a R50.6 billion budget on Tuesday morning as it looks to improve service delivery.
The city’s proposed R50.6-billion 2024/25 budget which includes R48.3-billion in operating costs and R2.3-billion in capital infrastructure investment.
It shows that residents will feel the pinch when electricity tariffs increase by 12%, water and sanitation by 5.9%, property rates by 5% and a 5% hike for refuse removal by 1 July 2024.
For a greater part of 2023, the city was candid about its severe financial constraints, part of which it attributed to the previous ANC-led administration, which had been at the helm for nearly two decades before being replaced by a DA-led coalition in 2016.
The city could barely pay its debt, including to Eskom and Rand Water, and its finances were further crippled by a protracted municipal strike by workers who were demanding a 5.4% salary increase, the final phase of a three-year wage agreement signed at the South African Local Government Bargaining Council in 2021.
The city refused multiple times to bow to political pressure to grant the salary increases, saying it was unfeasible to do so. On Tuesday, however, Uys delivered what would be good news for employees.
She announced that the 2024/25 financial year budget had made provision for salary increases of 5.1% for employees and 5% for councillors.
“We have had difficult years of no increments and this will offer a little bit of relief to all. The city values its workforce. We have hard-working officials in this city who are worth every cent they earn,” said Uys.
“Despite making provision for salary increments, the city remains in a financially challenging position. Therefore, all employees should continue working to help with the financial rescue of the city,” she said.
Tshwane has also been battling with revenue collection, particularly from its debtors, and as a result has had to introduce Tshwane Ya Tima, a campaign to clamp down on clients who fail to pay their bills, including households and businesses, in an attempt to claw back some of the more than R6-billion owed to the municipality.
Uys revealed that the city had already issued almost 40,000 letters of demand to defaulting consumers who run up high service bills and fail to pay the city.
In addition, she said a project management office has been established to take charge of each aspect of the city’s revenue value chain. This includes rolling out prepaid electricity meters, dispatching bills, speedily resolving disputes and implementing credit control and debt collection measures such as issuing summons against debtors.
The city has allocated a combined budget of R4.5-billion for the 2024/25 financial year. Uys said this allocation would help enhance safety and drive quality emergency services for residents.
R3.4-billion will go towards the Tshwane Metro Police Department to empower officers to fulfil their mandate, which includes road policing, by-law enforcement and crime prevention.
“R1.038-billion will go towards the Emergency Services Department to continue rendering lifesaving services and to strengthen the department’s capacity to effectively respond to emergencies,” said Uys.
Uys announced that the Water and Sanitation Department had been allocated R536-million for the current financial year. Of this, R150-million will be used for the Rooiwal Wastewater Treatment Works Phase 1 upgrade.
Several other initiatives are aimed at refurbishing, upgrading and constructing water reservoirs in and around the city.
“When we speak of our commitment to the Mayoral Charter of ensuring sustainable water and electricity supply, it is not just political talk – we mean business. We care about the provision of potable water and uninterrupted power supply to our residents,” she said.
Uys also announced that a combined operational and capital budget of R1.1-billion has been allocated to the Department of Human Settlements.
Of the R1.1-billion, the city’s Group Property would receive just over R1-billion to focus on the management and maintenance of its core buildings that house city employees.
Councillors from the parties represented in council will debate and vote for the budget on Thursday.