The Emalahleni Executive Mayor C.N Nkalintshali tabled the 2023/2024 final budget in the special council meeting held on the 19 May where it was approved.
The municipal budgets are set out to implement programmes as laid out in the Integrated Development Plan (IDP).
The capital expenditure budget amounts to R241,3million, with the operational expenditure amounting to R4,9billion for the next financial year.
The municipality will supplement its main five (5) revenue resources by implementing the following approved revenue streams from the 1st July:
- Property rates 5.3%
- Electricity 15.10%
- Water 5.3%
- Sanitation 5.3%
- Refuse 10.40%
The increase in the electricity tariff of 15.10% for customers is considerably less than the 18.70% tariff increase in the bulk purchase from Eskom allowed by the National Energy Regulatory of South Africa.
However, the difference has been absorbed through subsidy from other revenue streams.
The approved budget for 2023/2024 financial year reflects a surplus of R23,3million under financial performance.
The surplus will be achieved through the following revenue assumption:
- Implementation of the annual increment on service charges;
- Reduction on a rebate for agricultural farms from 90% to 75% as per the PMRA act;
- A rebate of 5% on business properties will be removed;
- Prepaid meters with zero sales on prepaid will be billed a flat rate of 600 units (which amounts to R1 374.48);
- Eliminating electricity losses in 2023/2024 financial year which will translate into an annual revenue of R50 million.
- Introduction of a refuse tariff for household with second dwelling or boarding rooms;
- Implementation of revenue enhancement strategies.
The approved operational expenditure budget amounts to R4,9billion which includes amongst the following:
- Employee related cost amounting to R1,1billion;
- Bulk purchases for electricity at R1,6billion;
- Finance charge budget amounts to R99,3million (Subject to approval of the debt relief application by the National Treasury);
- Provision for doubtful debt budgeted for R879,0million (The calculation for provision for doubtful debt is based on budgeted collection rate of 80%);
- Budget for contracted services amounts to R455,9million
It must be noted that this budget is based on a payment rate of 80% as per the debt relief policy.
For this to be achieved it will require Emalahleni communities to pay their services.
Emalahleni Local Municipality