The eThekwini Municipality was in good financial health, with a surplus of over R1 billion and on track to welcome tens of thousands of visitors to the city over the festive season.
This is according to Mayor Mxolisi Kaunda who delivered an optimistic overview of the City's financial situation, at a full council meeting on Monday, reinforcing its sustainability against a backdrop of global economic stressors.
"Honourable Councillors, eThekwini Municipality stands strong in the face of adversity," Kaunda said, referencing the trials posed by the Covid-19 pandemic, the civil unrest of 2021, and the devastating floods that have impacted the region.
Kaunda said that the municipality's cash on hand has rallied from a low point during the pandemic to R7.6 billion as of November 2023, well within National Treasury norms.
This fiscal buoyancy is a testament to the City's economic resilience, with liquidity indicators reflecting a healthy current ratio of 1.56 times as of October 2023.
“Total income as at October 2023 was R18.87 billion and total expenditure was R17.39 billion resulting in a surplus of R1.48 billion,” Kaunda said.
Kaunda outlined several key interventions aimed at bolstering the capital budget, including enhanced monitoring and procurement planning, as well as a commitment to fully expand grant funding by the end of the fiscal year.
“We are projecting to spend 100% of our grant funding by the end of the financial year in June,” he said.
Addressing infrastructural challenges, Kaunda highlighted comprehensive measures to mitigate water and electricity losses, exacerbated by ageing infrastructure and illegal connections.
He said the city was systematically installing Pressure Reducing Valves, and replacing domestic water meters in an effort to mitigate the city’s water losses.
The mayor also turned his attention to the city's rate clearance efficiency, a critical indicator of economic vitality.
“In fact, the issuing of rates clearance is a matter of strategic importance to the city and it is one of the indicators of economic growth. In addition, the World Bank has listed the issuing of rates clearance as one of the matters to consider when deciding on the city or country to do business with. We want to commend our revenue unit for accelerating this process from November 1, despite the challenges of meter reading. As at the end of November, our rate clearance was at 83.94%,” Kaunda said.
In a robust defence of the municipality's credit control measures, Kaunda disclosed the recent establishment of a disconnection committee, which has effectively disconnected services for over 90,000 customers who owed the City a collective R7.97 billion for both water and electricity.
“With the meter reading function having re-started last month, the number of the disconnections will pick up again and more orders will be issued,” Kaunda said.
He added that through these credit control initiatives in the last five months, the city has achieved higher than budgeted collections of R17.3 billion against a budget of R 16.6 billion.
With social considerations a priority, Kaunda touched on the council's approval of a debt relief programme that aims to aid thousands of residents struggling financially.
So far, the city has received 8,114 applications from struggling families valued at R712 million in capital debt and R74 million in interest debt.
“We are confident that as the programme comes to an end this month, more customers whose accounts are in arrears for a period of 90 days will take advantage of this opportunity,” Kaunda said.
Updating the council on the land release strategy, the mayor announced the awarding of several properties, prioritising empowerment through property ownership, "11 properties awarded, with significant representation by black and youth-owned companies," he said.
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