2010 – Vanderbijlpark: The Executive Mayor, Clr Assistance Mshudulu hosted the media briefing in the council chamber to highlight the need for residents to pay for the municipal services on the 1 October 2010. The purpose of that media briefing was to present to residents the intention of the municipality's programme of action for revenue enhancement.

Local government's core legislative mandate is to provide basic services to communities. The execution of this core mandate rests on the equitable share allocated by the national fiscus to municipalities.

This allocation is not enough given the mammoth challenges of developmental municipalities in relation to infrastructural development, refuse removal, provision of water, electricity, sanitation, better roads and health.

Municipalities on the other hand rely on the revenue collected from residents for the services provided. The acceleration of service delivery and the provision of quality services for a better life of our residents require the creation of a sound, viable and sustainable financial base.

For these to be realized, residents are expected to contribute to the creation of a financially viable municipality through payment of services. During the process of the Integrated Development Plan and Budget public participation processes, communities contributed towards the design of the IDP through input. This input consisted of priorities to change the lives of our people for the better.

For this to be attained, a budget is a necessary tool. The budget consists of operational and capital expenditure for capital projects and maintenance. The nature and magnitude of these projects and their maintenance informs the budget. However, revenue collected from communities through payment for services rendered, constitutes a substantial part of the budget.

Government has committed itself through the 2010/11 budget to meet the IDP targets as informed by community inputs. It should be recalled that the budgetary and IDP process were people led and people driven, thus making our people truthful and legitimate owners and guardians of service delivery and reconstruction and development for the next 12 months.

Emfuleni Local Municipality is faced with the difficulty of accelerating service delivery and to provide basic services to communities. This accounts for:

• Delays in collection of refuse;
• Provision of electricity and water;
• Construction of sewer and road networks;
• Provision of health services;
• Provision of community and public safety;
• Provision of emergency services; and
• Caring for the elderly, women, youth, children and people with disabilities, amongst others.

Failure by communities to pay for services rendered to residents derails the aspirations of the people as contained in the IDP and the overall strategic objectives and the mandate of local government. As at the present day, the municipal debt has reached high proportions to the level of incapacity for Emfuleni to render services to communities. The current debt due to non payment by consumers stands at two billion rand and is increasing daily. In some Wards, the payment levels are below 30% and even as low as 7.6%. Of great concern is that not only the poorest sections of our communities owe the municipality, but also the wealthy sections of our communities.

Emfuleni's failure to pay Eskom and Rand Water will result in the entire municipality without electricity and water. In order to improve this sad state of affairs and to enable the Municipality to discharge its service delivery mandate, communities are encouraged to pay their current account.

The fourth quarter local government budget statement released by the National Treasury last month covers revenue and expenditure for the twelve months of the 2009/10 municipal financial year which ended in June, reflects municipal's consumer debts amounting to R56.1 billion nationally. The largest component of the debt relates to households which account for 56.3 percent or R31.6 billion. The figures indicate that local government is facing serious challenges from unpaid debt. This sorry state of affair indicates that urgent attention is needed.

Emfuleni Local Municipality acknowledges that there are residents who genuinely cannot afford to pay for services. Such residents are encouraged to register as indigent households with the department of social services so that they can benefit. A household qualifies as Indigent if the gross household income is less than R2160.00 per month (i.e. two state pensions). Indigent households once verified and approved qualify for the following subsidy:

• Water up to (6kl plus 4kl subject to affordability)
• Electricity (50kwh)
• Sewer (full)
• Refuse (full)
• Rates (full)
• Rentals (50%)

Based on the analysis, there are almost 20 000 potential indigent households that are not registered. Such indigent households are earnestly called upon to register. Those who do not qualify as indigents must pay their municipal accounts including their arrears. If they cannot afford to pay, the municipality has introduced incentive policies to accommodate such residents.

A resident will be entitled to a 50% discount after paying 50% of the principal debt outstanding. Interest and penalties will be written off. If a resident cannot afford to pay the 50% in one payment, they can arrange to:

• Pay the monthly current account every month for 6 months
• Thereafter a rand-for-rand discount will be given from the 7th month onwards. Interest and penalties will be written off.

As for the business sector, the Municipality will give a discount of up to 30% on settlement of outstanding accounts. Penalties and interest will also be written off. There is also a benefit of a 7% discount on those who settle their principal debt within six months, no matter the nature of the debt.

As part of the measures to counter the non-payment challenge, the municipality has developed a Revenue Enhancement programme of action which includes public participation through the IDP process. Ward Councillors, Ward coordinators and CDW's have been briefed on this programme.
In the same spirit communities are urged to use water and electricity wisely. Water continues to be wasted through leaks, in households, carwashes and businesses. Water wastages and losses account for a massive bill for communities and business. This increases the cost of acquiring and sourcing water from Rand Water.

Residents are urged to switch lights off during the day. Switch off non essential and report any illegal connections and re-connections of electricity and water metres. Those who steal these services do so at the expense of paying residents. Their action has a negative effect on the ability of Emfuleni to continue to render services to the entire community.

This application of strict credit control has already started with the municipal employees and councillors defaulting on municipal account since August 2010. This will be extended to other government employees with properties within the Emfuleni Local Municipality.

Take the responsibility to pay for the municipal debts. Pay your current account now.

For general account billing inquiries please phone:
016 950 5109 or 016 950 5107

For indigent administration:
Cleo Musi Sebokeng 016 592 2321
Nomlinda Mashiloane Vereeniging 016 450 3084
Amy Senkgane Vanderbijlpark 016 950 5234
Salhmiwa Mathe Evaton 016 596 1020/1/2/3