Overwhelming support for R19,1 billion budget – NMBM

The Nelson
Mandela Bay Municipality’s R19,1 billion 2023-24 Capital and Operating budgets
received a clean bill of health from National Treasury and a unanimous
thumbs-up from all political parties represented in Council. The last time all
political parties voted in favour of the institution’s budget was in 2013.

Member of
the Mayoral Committee for Budget and Treasury Buyelwa Mafaya said the budget is
cash-backed and in compliance with section 18 of the Municipal Finance
Management Act (MFMA).

“I am also
pleased that National Treasury assessed our financial position and determined
that it is sound,” MMC Mafaya said.

The
operating budget is R17,2 billion and the capital budget is R1,9 billion, with
the cash holding currently at R4,8 billion. This will decrease to R3,5 billion in
the 2025/26 financial year.

Chief
Financial Officer Selwyn Thys said the reduction of the municipal operating
expenditure is a crucial matter that must be addressed.

“Over the
next three years we need to work towards a surplus budget. This is critical to
address our aging infrastructure that requires a cash injection to fast-track
the replacement of old infrastructure,” Thys said.

While
tabling the budget, Executive Mayor Gary van Niekerk said the budget is based
on an 80% revenue collection rate and that it is critical to continue collecting
revenue at this rate in order for the budget to remain fully funded. The
revenue collection rate in May was 83%.

“As part of
my first 100 days strategic plan, we will start the planning phase of implementing
the municipal standard chart of accounts (mSCOA), a requisite that is long
overdue. National Treasury has been very patient with the municipality regarding
this. We therefore put R20 million aside to get a team with a proven
track-record in place to ensure that we comply.

“I commit
to address 100 illegal electricity connections, 375 LED streetlights will be
installed, 4 500 water leaks repaired, 3 500 potholes filled and 32 000
kilometers of road painted.

“In
addition, 600 close circuit television cameras will be installed to enable
security surveillance and critical vacancies will be filled, amongst others,”
Mayor Van Niekerk said.

The
municipality’s disconnection/reconnection fee, a hot topic amongst political
parties, was reduced with 25% from R417 to R313.

#13;

Issued on
behalf the Office of the Executive Mayor by Nelson Mandela Bay Municipality Media
Management Officer Kupido Baron (0827802726 / 041 506 1500 / kbaron@mandelametro.gov.za / @kupidobaron).