WITH a substantial R1-billion budget under its belt, the uThungulu District Municipality says it is now a ‘major player in the province’ both economically and developmentally.
District Mayor Thembeka Mchunu gave the positive forecast during her presentation of the final budget to councillors in Richards Bay last week.
But while the bulk budget was largely welcomed, Mchunu warned that the budget was also one of ‘prudence and affordability’.
‘In preparing this budget, we were mindful of the current economic climate, the rising costs of electricity and fuel, and most especially, the drought ravaging our district,’ said Mchunu.
‘The national finance minister during his budget speech in February warned that we were entering a difficult fiscal period, where the focus needed to be on service delivery and all non-essentials should be trimmed from the budget.
‘He said government must be accountable to taxpayers and to make sure they get value for money.
‘If we cannot account for our actions then it is a serious challenge for us as the leadership of this municipality.’
The total revenue budget for the district for the 2015/16 financial year stands at R1.109-billion and the total expenditure is expected to be R1.156-billion.
Drought
The allocation for drought relief alone has been budgeted at R18-million. However should the drought persist further, the mayor said funding may be required to augment the shortfall.
‘Our tariff increase for the 2015/2016 financial year takes due consideration of a number of compelling factors including the high costs of water reticulation, the effect of the drought on the provision of services and escalating electricity costs.
‘This is however balanced with the need to be affordable and with due consideration of the financial constraints of our consumers,’ Mchunu said.
She further praised the municipality for achieving great success in eradicating backlogs in water and sanitation.
‘At Mthonjaneni and Ntambanana, we are only doing infills with sanitation. Our water backlogs have decreased from 81% to 39% between 2001 and now.’
The district also welcomed newly elected Council Whip Cllr Khulani Hadebe following the resignation of former whip Cllr Sifiso Ngema.
As part of the public participation process, a budget feedback session will be hosted during the State of the District address on 12 June at Ntambanana Municipality.
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