Note to Editors: Please find attached English, Afrikaans and SeSotho soundbites.
The DA in Mangaung has proposed an alternative budget to that of the ANC which was tabled on 3 June 2022. Legal opinion has indicated that the budget was not lawfully approved, ultimately putting opposition parties in a bargaining position.
We would like to stress that this is not a fight against the proposed budget but rather a fight for service delivery supported by a budget that is realistic and sustainable. The DA strived to present a budget which does not exploit residents through unnecessary tariffs increases, unrealistic prospects of a 26 percentage growth in investments and an inflated salary bill of R2.4 billion.
The Democratic Alliance has made the following proposals regarding the tariff increases:
• 5% property tax, while the ANC proposed 6%
• 7.47% for electricity in line with NERSA and the Metro’s proposed tariff.
• 9% for water (in line with the increase in Bloemwater tariffs) without the additional proposed 4%
• Refuse removal 2.5% compared to the Metro’s 4.8%, as most residents already pay private contractors to remove their refuse.
With regard to the expenses, we proposed that the salary bill should be cut by R300 million. Our proposal decreases the budget for “other expenses” from R350 million to R200 million.
The DA’s proposal was drawn assuming an 80% collection rate, rather than the unrealistic 94% of the ANC budget.
The current budget does not speak to all residents, and we have put plans on the table to improve the income of the Metro and to allocate this to the upgrading of infrastructure in all wards. In addition, our proposal managed to budget an additional R260 million for Repairs and Maintenance which is critical to enable proper basic service delivery.
This is over and above the possible saving of R450 million per annum through the repairs of water leaks and the possible addition of R200 million through the effective spending on grants together with the R160 million per annum by the reduction of unnecessary outsourcing.
Unfortunately, the ANC is not willing to commit to a better life for all. We believe, if our proposals are accepted and introduced, it will not only ensure that the Metro can operate on the basis of a fully funded budget, but will also enable the delivery of basic services.