The five year Integrated Development Plan and 2011/12 Budget for the Nelson Mandela Bay Municipality was approved at a full meeting of council today.
Savings worth R45 million were identified resulting in proposed tariff increases being reduced significantly to 11.5% across the board from 15% for water, 14% – property, and 14 % – Sanitation and refuse collection.
The increases for electricity have been determined per customer category with 16% for beneficiaries of the Assistance to the Poor Programme, 22% for other domestic consumers, 24% for small businesses and 28% for Medium and large businesses.
The IDP and Budget were approved today following an extensive public participation process in terms of which public meetings were held with various ward clusters from the beginning until 12 May 2011. Following this process, the revised Budget was tabled at the first meeting of the newly formed council on 31 May 2011.
At the meeting, the Executive Mayor, Cllr Zanoxolo Wayile, decided to allow more time for stakeholders to make input, effectively extending the 21 days prescribed by legislation for consulting with communities. While the public participation process was underway, council convened on a weekly basis as guided by legislation until the budget and IDP were approved today.
Both the Acting Executive Mayor, Cllr, Nancy Sihlwayi and Budget and Treasury Portfolio Chairperson, Cllr Balu Naran, said the municipality would focus on increasing its revenue base to ensure the successful implementation of the IDP and the Budget. Among other things, Cllr. Sihlwayi said the municipality would work hard to increase the sources of funding for its capital budget and ensure it did not rely mostly on government grants.
Budget allocations for wards will be done within seven days in line with the 80/20 principle which dictates that 80% of the budget be spent on underdeveloped wards. The revised IDP has a credible list of ward priorities based on which allocations will be made.
Editors Notes: In a nutshell; the average tariff increase for a small household is set at 12.6% compared to the average tariff increase for a large household that is set at 16.4%.
The Nelson Mandela Ratepayers Association came out with guns blazing against the increases and revealed an important leg of their strategy that they would follow should they take the Municipality to court i.e. the lack of consultation by the municipality with stakeholders and ratepayers. So, what has the municipality been doing? Consulting with stakeholders and ratepayers.
Remember, consulting is just chin wagging and useless in the absence of an actual end goal to work towards.
And the other ‘stumbling block’ was removed by NERSA yesterday who agreed to the Municipalities application in full except for the domestic tariffs which will be reduced by approximately 0.02%. The financial impact of this reduction over the financial year is approximately R1.9 million. This revenue reduction will be absorbed into the operating budget of Council.
A quick way for the council to absorb the 0.02% reduction would be to accelerate land disposal.
What sticks in my craw is the fact that services provided by government do not have a competitor, I cannot decide to pay some other municipality or private concern for water, electricity, rates or sewage. The only time I get to exercise my choice is when an election rolls around. In the meantime I have to stand mutely by and watch councillors graduate from old skedonks to fancy luxury vehicles.
With the Mayor off to get investment from China I had a little look around to see if I could see any Chinese tourists – NONE. I need to remind you Mr Mayor that; “In the Nelson Mandela Bay Stadium in Port Elizabeth, nearly all the 50 000 seats were made in China and installed by Chinese workers.” THIS is not investment nor were the more than 12 million Jabulani Soccer balls, millions of Vuvuzelas and other fan paraphenalia sold to eager World Cup fans.
We need investment that will ensure that our citizens get jobs and that sustainable skills transfer takes place.
I fear that you Mr Mayor will be taken to the cleaners by foreigners well versed in ‘economic terrorism’.
NMB Communications
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