Johnathan Paoli
Ekurhuleni Executive mayor Nkosindiphile Xhakaza has expressed his confidence that the African National Congress (ANC)-led metro was on track in ensuring financial stability and effective service delivery through its annual budget.
Xhakaza and newly-appointed Member of the Mayoral Committee (MMC) for Finance, Jongizizwe Dlabathi briefed the media on Wednesday at the OR Tambo precinct in Germiston, on developments within the metro and outlined some of the elements of the approved annual budget.
Xhakaza said the executive’s attempt at turning things around for the city has been a story of resilience, dedication and progress.
“This journey, though filled with challenges, has been marked by significant strides towards restoring delivery and rebuilding public trust in our local government,” he said.
The Mayor said one of the key initiatives was the establishment of the “Service Delivery War Room” – a multi-departmental platform designed to enhance coordination and tackle service delivery issues head-on.
Xhakaza praised the milestones achieved in terms of the contentious issue of waste collection in the metro and said that in a span of 90 days, the executive facilitated the opening up of the Rietfontein landfill site, and the delivery of 13 waste compactor trucks.
“This significant enhancement to our waste management infrastructure will greatly improve the efficiency and reliability of waste collection services across the city, leading to cleaner neighbourhoods and a healthier living environment for all residents,” he said.
Xhakaza said his government was committed to sustainable economic development and job creation, which is illustrated by the inauguration of the Vosloorus Multi-Purpose Centre and the launch of the “Fetsa Tlala Agriculture Support programme” for emerging Black farmers and cooperatives.
He praised the recent accolades received by the metro at the 2nd annual South African Local Government Association Municipal Audit Awards last week, in which the city won two awards for reducing unauthorised, irregular, fruitless and wasteful expenditure and for implementing effective consequence management.
Finance MMC Dlabathi outlined some of the infrastructure interventions as outlined in the recently approved budget.
Dlabathi said the budget was developed through extensive consultation with the multi-party caucus and rigorous planning in the finance budget steering committee.
“This budget reflects our commitment to promoting good governance and ensuring the financial sustainability of our city,” Dlabathi said, adding that the administration is committed to maintaining financial stability while addressing the needs of residents and driving sustainable urban development.
The MMC said the total revenue for the 2024/2025 fiscal year is projected to be R60.67 billion, an increase from the revised budget of R55.56 billion for 2023/24.
In terms of expenditure, they have budgeted R60.07 billion for the fiscal year, up from R55.08 billion in the revised budget for the last year, he said.
An operating surplus of R601.9 million is being anticipated by the administration, and expected to grow throughout the next three years, ensuring sound financial footing.
Dlabathi confirmed that R475 million has been allocated for road repairs and maintenance, and R420 million for upgrading and maintaining the stormwater drainage systems.
He said the energy department has been allocated a capital budget of R5.52 billion, R2.636 billion for the roads and stormwater department, R590 million for the water and sanitation department, R353 million for the transport department, and R492.5 million for the human settlements department.
The MMC announced tariff adjustments, namely: property rates by 4.6%, sanitation by 6%, refuse removal by 5.3%, water by 6%, electricity by 11.75%.
Dlabathi said the executive understood the impact of these increases on residents and have ensured that they are kept to a minimum while still enabling the effective delivery of essential services.
He outlined the Revenue Enhancement and Cost Containment Framework (RECCF) – a strategic initiative aimed at bolstering revenue generation and enhancing frugality in the city.
The RECCF will establish monitoring structures, including the Technical War Room Committee and the Administrative Oversight Committee.
Dlabathi said the framework will be rolled out in three phases, namely: financial rescue, stabilisation and sustainability.
He called upon stakeholders to support the budget and work together to create a better Ekurhuleni for all.
“This budget is a testament to our commitment to building a responsive and agile service delivery orientated city,” Dlabathi said.
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