Ekurhuleni's jobless rate strains municipality
ONE rate-paying household in the Ekurhuleni metropolitan municipality subsidises three non-paying households.
The municipality expects this worrying situation to get worse over the next two to three years when the number of households being subsidised will double to six while the number of rate-paying households will remain the same.
This comes after a startling revelation was made indicating that Ekurhuleni's unemployment rate outstripped the national rate, which currently stood at about 24%.
The member of the mayoral committee for finance in the municipality, Moses Makwakwa, said this situation could hamper Ekurhuleni's financial sustainability.
To combat the debilitating effects of poverty and its potential impact on the municipality's financial viability, Makwakwa urged residents who qualified to register as indigents.
Makwakwa also announced that the indigent relief period would be extended from the current 24 months to 36 months while pensioners and other categories of people could, in future, be given permanent indigent status.
A further R20-million will be set aside to "support economic activities to stimulate and develop township economies and R8-million for a programme leading to the revitalisation of the manufacturing sector.
But Ekurhuleni's grand vision takes place against a background of stunted economic growth and a shocking skills shortage.
Makwakwa said the current economic growth rate "is insufficient to reduce unemployment" but that a glaring skills shortage also hampered the city's job creation plans.
"... only 8% of the Ekurhuleni population has more than a matric certificate, of which only 58000 have university degrees," said Makwakwa.
"A total of 92% of the unemployed in the region require unskilled or semi-skilled job opportunities."
Despite this bleak reality, Ekurhuleni managed to generate R23.8-billion in revenue.
The city's capital budget for the 2012/2013 financial year stood at R2.6-billion, with roads and storm-water getting the lion's share at R581-million.
Water and sanitation as well as energy also received larger allocations at R410-million and R398-million respectively.
Transport, human settlements, health and social development would each receive R86-million, R78.3-million, R115.2-million, respectively.

Comments
Wesm
TARRIFSThe following tariff increases are presented:
• Assessment Rates – 7.50% (all categories);
• Electricity – Income increase of 11.03%, individual increases ranging from a decrease of 25% to a 13.5% increase;
• Water – 11.3% for both residential and business (block tariffs are being restructured);
• Sanitation – 10.68% for both residential and business (block tariffs are being restructured);
• Solid Waste – 15% for both residential and business.
A typical bill of the Ekurhuleni Metropolitan Municipality is lower when compared to other metros. In a study done by National Treasury it was seen that bills range from R1 329.87 per month to R1 032.45 – the latter is the bill of Ekurhuleni! This is part of our effort to ensure that our services are affordable and competitive. it is also in line with our intention of being a preferred destination for doing business.
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LBS
"ONE rate-paying household in the Ekurhuleni metropolitan municipality subsidises three non-paying households."-----------------------------------------
I would say that the 'strain' is on the ratepayers carrying the burden and NOT the municipality!!
How long before these poor sods (ratepayers) also buckle under the pressure of supplying freebies to the majority?
We are fast becoming a country of parasites who don't contribute but demand, demand, demand and of course the ANC sees it as expedient to give, give, give simply because it is NOT their money but it does get them votes to stay in power and continue looting the public purse over and above their exorbitant salaries!
Something is going to break, and soon - all these freebies and free loaders are unsustainable!!
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Printa
What?Report Abuse
Mbelewolwazi
@WesmDon't you guys think it will be prudent to introduce flat rates for tthe two thirds who are not paying a dime currently. Don't you think it will serve as an incentive to pay something in and enhance revenue instead of nothing. The next best thing is to compel all house holds to have prepaid electricity so that if rates are not paid at all then electricity cannot be bought. The free loaders will complain of course but they will get used to it.
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swona
Wesmmaybe u working for ekurhuleni, but ur analysis of ekurhuleni bill in my house in Birchleigh is not the same as urs, in january I changed my metre to prepaid, before I changed my metre, I would pay R2 000,00 or more for electricity alone per month, and if water is expensive I would pay R400,00 on average, in a house where i share with my spouce and two kids undere the age of 12 with a full time helper! now I buy electricity for R600,00 a month, nothing has been reduced from before we got our prepaid metre, so in short per month ekurhuleni was taking R1400.00 a month from me! and a twist from my bill that makes me angry and laugh at the same time and be dissapointed, is water at my house from the month that an electric metre was connected has gone up to more than R1500,00 a month, April was R1998,37, I asked my nanny if she does not own a tanker pumping water from my house to her mother in Limpopo when I am at work! think Ekurhuleni is milking its residents, they must also introduce prepaid water metres, but O am scared they will charge us R2000,00 for refuse collection per month!
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