Capital underspend ‘a worry’
That was the big question at Tuesday’s Exco sitting after just R184.4-million (33.62%) of the Proposed Adjusted Capital Budget of R548-million had been spent by the end of February
JUST how much of the City of uMhlathuze’s budgeted capital expenditure will in fact be spent by the end of the financial year?
That was the big question at Tuesday’s Exco sitting after just R184.4-million (33.62%) of the Proposed Adjusted Capital Budget of R548-million had been spent by the end of February.
With the reported figure projected to reach 51% at the end of April, and with ‘all projects now committed’, this was expected to rise to 78% by the end of June.
On the positive side, the monthly budget statement summary for February 2017 (year to date) shows a surplus of R90.9-million, implying good ability to raise and collect its budgeted income.
Mayor Mhlongo said it was also pleasing to note all procurement transactions had been done on ‘a fair basis’.
Big brother debt
Government debt remains a problem.
Although most of government’s 396 accounts with council have been paid, a small group of property related accounts are in arrears.
Eight of the ‘top 10’ in the 90 days plus category are in the name of the Department of Public Works, one with KZN Province and one with the Minister of Land Affairs.
Together they total R3.57-million.
If positive payment outcomes are not forthcoming after negotiations, disconnection of services will be considered.
Wasted water woes
Illegal connections are the single greatest contributor to water and electricity losses.
Leakages and lack of meters are also problems.
While water losses have been reduced from 36% to 21% over the past three years, this is still seen as highly excessive.
Technical and social interventions, such as visiting schools and wards, are being conducted.
Disaster management disaster
The municipality is not complying with the Disaster Management Act and has two options.
One is to establish its own fully-fledged disaster management unit, separate from the Fire Department, which now handles the concern.
The other is to sign an MOU and affiliate to the District Disaster Forum.
The first option was considered preferable.
‘We should build capacity so as to respond better to our citizens,’ said Cllr Mhlongo.
We built this city
Building statistics for the first quarter of 2017 showed vastly improved growth.
January plans approved:
Dwellings – 7. Cost R3 112 000
Dwellings alterations/extensions – 4. Cost R1 995 000
Group housing (20 units) – 1. Cost R11 641 000
Gen industrial – 2. Cost R38 290 000
Gen industrial alt/ext – 2. Cost R41 013 000
School adds/alts – 2. Cost 6 391 000
January buildings completed:
Dwellings adds/alts – 2. Cost R910 000
February plans approved:
Dwellings – 3. Cost R9 450 000
Dwellings alterations/extensions – 22. Cost R15 491 000
General industrial – 2. Cost R52 360 000
General industrial ext/alt – 1. Cost R1 127 000
February buildings completed:
Dwellings – 1. Cost R300 000
Commercial alts – 4. Cost R6 144 000
March plans approved:
Dwellings adds/alts – 12. Cost R8 281 000
General industrial – 1. Cost R17 815 000
March buildings completed:
Dwellings – 4. Cost R1 578 000
Commercial alterations – 1. Cost 2 480 000.
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