Job creation, poverty eradication, youth development, provision of integrated human settlements and economic development, among others, will be major focus areas of the Nelson Mandela Bay Municipality in the R7.5 billion Budget for the 2011/12 financial year.
Over 33 thousand new jobs valued at R87,5 million (See: Editors Notes below for reasons why the unions may be a tad pissed off) will be created during the ensuing financial year mainly through the provision of integrated human settlements and infrastructure, service delivery and developmental initiatives.
These are part of the draft 2011/12 Integrated Development Plan (IDP) and Budget that was approved at a joint meeting of the Mayoral and Budget & Treasury Committees of the Nelson Mandela Bay Municipality today.
The IDP and Budget for the ensuing three financial years is strongly influenced by the key strategic regional development imperatives and planned expenditure has been represented in terms of its impact on these. This underscores the importance of the strategic alignment of the IDP and Budget of the municipality with regional priorities in line with the resolutions of the economic summit held in the Bay, among other things.
The proposed budget for the ensuing financial year is close to R7.5 billion, with R1,435 billion and R6,035 billion allocated to the capital and operating budgets respectively.
In order to respond to the financial challenges experienced by the municipality in the current financial year, a strong emphasis has been placed on sufficient cash-backing of the budget. Rigorous analytical processes have taken place within the municipality to ensure that the projected expenditure is backed by realistic estimates of revenues.
Additionally, the municipality is proceeding with the implementation of its financial recovery plan, putting emphasis on initiatives to increase revenue generation and unlocking donor funding, while measures are intensified to increase the revenue collection rates.
Even with these initiatives, the draft budget remains conservative in its estimates of revenues in order to ensure there is no repeat of the mistakes which led to the cash flow challenges experienced this year. In this regard project spending will be aligned with income, the housing revolving fund will be kept at sustainable levels, and intergovernmental relations will be improved to address municipal spending on unfunded mandates.
Notwithstanding a slight decrease of 12% compared to the current financial year, the proposed budget remains bold in terms of addressing key developmental and service delivery imperatives of the municipality.
The capital budget will be financed mainly through government grants with major sources being 34.81% from the Urban Settlements Development Grant that has replaced the Municipal Infrastructure Grant, 27.87% from the Drought Relief Grant, 13.94 percent from the 2010 Public Transport Integrated System Grant and 10.69% from the fuel levy.
Service charges remain the major source of funding for the operating budget contributing 49% of the total, followed by government grants at 34% and property rates at 13%.
Proposed changes to tariff charges to be effective at the beginning of the ensuing financial year on 1 July 2011 are as follows: property rates – 14%, Water – 15%, Sanitation – 14%, Electricity – 24% and refuse collection is 14%.
The draft IDP and Budget have been approved for a further consultative process and need to be approved by council no later than 31 May 2011, a month before the start of the new financial year.
Editors Notes – With respect to the 87.5 Million and 33 000 jobs I have made the following assumptions:
- A financial year is 12 months long,
- Each job created will last for at least the length of a financial year,
- R87,5 Million is the total that will be paid to 33 000 people over the entire financial year.
I then took 87 500 000 and divided it by 33 000 and then by 12 to get a monthly salary of 220.95 per person per month.
I wonder what the unions will say about this?
NMB Communications
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