Steep increases for Nelson Mandela Bay services on the way

Nelson Mandela Bay ratepayers will have to dig deeper into their pockets from July 1 if proposed water, electricity, refuse and property rates increases are approved.

The municipality has proposed hikes of 7.5% for water, sanitation and refuse, 5% for property rates and 6.84% for electricity.

These are among the budget proposals that the city will be taking to residents over the next three weeks as it embarks on a public participation process.

That is if the council can adopt the draft budget on Tuesday for further refinement before the final budget must be approved by the end of June.

The electricity tariff increase proposal of 6.84% is subject to approval by the National Energy Regulator of SA (Nersa).

Of the city’s R12.5bn total draft budget, R10.7bn is the operating budget while R1.8bn is the capital budget for infrastructure development.

Major allocations in the capital budget are:

● Infrastructure and engineering – R482m;

● Water-related infrastructure – R317m;

● Sanitation – R306m;

● Electricity – R202m; and

● Human settlements – R200m.

Meanwhile, some of the biggest allocations in the operating budget are:

● Employee-related costs – R3bn;

● Remuneration of councillors – R80m; and

● Bulk electricity purchases – R3.3bn.

The draft budget was meant to be noted by the council on Thursday but was not tabled as the ruling coalition failed to reach a quorum after a 3pm break.

Budget and treasury political head and United Front coalition partner Mkhuseli Mtsila left the meeting shortly after 3pm, saying he had to attend a conference in Johannesburg.

This meant that without the opposition parties’ support, the coalition could not note the budget.

And when the opposition parties left the meeting, the coalition could not muster a 61-member quorum needed to hold a meeting.

In yet another marathon council meeting, where insults were hurled and councillors debated whether or not ANC councillor Bongo Nombiba should be in the chamber, speaker Buyelwa Mafaya eventually adjourned the meeting at about 6pm.

The council was also meant to debate a motion of no confidence in mayor Mongameli Bobani.

The meeting is set to resume on Tuesday.

The city initially failed to meet the March 29 deadline to note the budget that had been set by the National Treasury.

Acting city manager Peter Neilson said it would notify the National Treasury of the failure to table and note the draft budget. Chief whip Bicks

Ndoni said various parties had failed to reach common ground on how the Urban Settlement Development Grant (USDG) windfall amount of R200m should be spent.

The money was a bonus grant from the Treasury from other municipalities or government departments that did not spend all their money in the last financial year.

The parties discussed the matter during a multiparty caucus.

Ndoni said there was a clear intention by the opposition to collapse the meeting.

“In the multiparty caucus, we said these items can be tabled so that we are compliant,” he said.

“In terms of the regulations, we were supposed to do this by the 29th of March but we couldn’t have that meeting, we hoped that this matter was going to be addressed.

“We had to compromise to say that let us change the wording in terms of the [Urban Settlements Development Grant].

“This is politics because people were raising things around matters in the northern areas that were not reflected and we agreed, there were small things that we didn’t agree on.”

Ndoni said they had been under the impression that the smaller parties would at least be present to note the budget.

“We had agreed but now they are leaving us when we had reached an agreement that we allow the meeting to go on because we must have the meeting.

“We have compliance issues and we have R200m that we must agree to spend.

“We can’t afford to be seen as people who throw away R200m.

“That would be very stupid of us and we would look bad to residents.

“The money has to be spent between now and the end of June, finish,” he said.

Patriotic Alliance councillor Marlon Daniels said the coalition failed to indicate the wards where the grant would be allocated.

“The current coalition is neglecting the northern areas of Nelson Mandela Bay,” he said.

“The Patriotic Alliance shall not settle or support the draft budget for it does not accommodate our beloved northern areas.”

ACDP councillor Lance Grootboom said the Urban Settlements Development Grant ignored Uitenhage and the northern areas.

“The agreement we had reached last week was not adhered to and the only thing in those items was money going to various wards which were not very clear,” Grootboom said.

COPE councillor Siyasanga Sijadu said when her party and the DA and ACDP were in a coalition they were always accused of arrogance when they were in governance and that they did not consult.

“It boggles the mind how no consultation was made with COPE when it comes to the, budget, USDG or anything – which then says to me and the people I represent that their views don’t matter.

“This is a direction COPE can never support.

“I also had issues when I saw the allocation from the USDG that [sports, recreation, arts and culture] was only going to be R5m.

“As a city, we know all of our sports facilities are crumbling, they need upgrades and, in fact, there are so many informal settlements popping up that we need sports facilities and this is an issue for me,” Sijadu said.

DA councillor Nqaba Bhanga said it was waiting patiently for Bobani to face the Hawks and answer about the money allegedly stolen from the city after reports in The Herald stating that he was implicated in money paid to Milongani Eco-Consulting.