The Emfuleni Local Municipality Council has approved the budget for the 2023/2024 financial year on 31 May 2023 .
This is in line with the Municipal Finance Management Act (MFMA), which requires that the budget of a municipality must be tabled for approval 30 days before the beginning of the new financial year i.e., by 31 May 2023.
The Municipal Spokesperson, Makhosonke Sangweni c says the task of compiling the budget has not been easy as the municipality is facing many challenges among them is the payment for services by communities which impacts on the ability of the municipality to provide services in a sustainable manner.
“The municipality is aware of challenges of unemployment in our communities and the impact that increase in rates and taxes has on the affordability of the services. This is the reason why ELM has kept other cost increases in line with inflation rate.” said Makho in a statement.
“Approved tariff adjustments for electricity and water, which their increases are beyond the control of the municipality and are informed by increases of bulk electricity and water from Eskom and Rand Water are 15.1% and 9.2% respectively. Other tariff adjustments are 5.3% and are informed by the projected Consumer Price Index (CPI) of 5.3% which is in terms of the National Treasury MFMA Circular 123.”
“The budget addresses the well-known challenges of basic services infrastructure and provision has been made to fix particularly the water and electricity infrastructure as the impact of high distribution losses in these services renders them as unsustainable. “
“Waste has been a challenge, from the current financial year (2022/2023) Emfuleni has procured compactor trucks and, more will be added in the 2023/2024 financial year so that service level standards as approved by Council are met.”
The municipality encourages all residents who can afford to pay for services to do so and those that cannot afford to register for free basic services in line with the Indigent Policy.
Sangweni said the budget was approved with a Budget Funding Plan which targets a collection rate of 80% in the 2023/2024 financial year. This is in line with the requirements of MFMA Circular 124 on municipal Eskom Debt Relief.
Eskom got a court request to hold onto the municipal bank account last December to recover R1.3-billion owed to the power utility.
“The municipality made an application for Eskom Debt Relief in terms of MFMA Circular 124 and must meet the conditions set by the Circular in order to have its Eskom debt as at 31 March 2023 to be written off. “said Sangweni
“Council approved that the application should be made in a special meeting held on 18 May 2023. Among the conditions is that the municipality must achieve collection rates of 80% in the 2023/2024 financial year and 85% and 95% in the 2024/2025 and 2025/2026 financial year respectively.”
“The municipality must also install electricity and water meters to qualify for the debt write-off. Further and detailed communication will be made regarding the relief in the near future.”
“We must work together as all stakeholders in the Vaal (RESIDENTS and BUSINESS etc.) to make Emfuleni Local Municipality a Municipality of choice.”
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