The eThekwini Municipality says the city remains in a strong financial position despite mounting economic pressures and ongoing revenue collection challenges.
This emerged during a Finance Committee meeting held on Wednesday, where the municipality reported that while cash and cash equivalents have declined over the past eight months, the city continues to be supported by stable grant allocations from national and provincial treasuries.
As of 16 March, the city’s cash on hand stood at R6.3 billion, representing 43 days’ liquidity, inclusive of grant funding.
“All proposed policies and amendments [discussed at the meeting], will be submitted to full council for consideration and final approval,” the municipality said in a statement on Thursday.
The committee noted that the Revenue Management Directorate is intensifying efforts to recover more than R26 billion in outstanding debt through targeted interventions.
Key measures include reducing estimated meter readings to below 10%, enforcing disconnections for non-compliant customers, and implementing full debt control processes, including the issuing of final demand notices.
Additional measures include replacing faulty and tampered meters, conducting audits to detect illegal connections, and investigating prepaid meters that reflect zero consumption.
The municipality is also implementing cost-saving initiatives aimed at improving operational efficiency and reducing losses.
These include strengthening invoice verification processes, leveraging the use of technology to prevent fuel theft and misuse of municipal vehicles, and conducting regular unannounced stock audits to curb material theft.
“Government and parastatal debt, currently at R2.2 billion, is being escalated to the Presidential eThekwini Working Group [for intervention]” the municipality said.
Proposed tariff adjustments
The committee approved a proposed 5% increase in the deposit tariff under the Revenue Management Policy, which will be included in the 2026/27 Draft Budget and Integrated Development Plan (IDP) consultations.
“This adjustment reflects the cost incurred by the municipality when providing services to new customers prior to billing. During this period, the municipality must settle obligations with service providers, such as Eskom and Umngeni-uThukela Water,” the city said.
The municipality noted that the deposit serves as a security measure and is not recognised as municipal income.
Policy amendments under review
The committee also recommended several amendments to the draft Credit Control and Debt Collection Policy for public consultation and council approval.
To address undetected underground domestic water leaks, the municipality proposed a fixed monthly charge for all domestic water users.
The fund would be used to support billing adjustments or write-offs in qualifying cases.
“Customers will now have 180 days, up from 60 days from the date of repair, to submit a water loss notification form, along with supporting documentation, at Sizakala Centres or Revenue Customer Services centres.”
In addition, the revised policy strengthens procedures for lodging account disputes, requiring customers to submit written applications with supporting evidence. It also strengthens the authority of municipal officials to investigate and resolve such disputes.
Draft indigent support policy
The proposed amendments to the draft Indigent Support Policy will allow trained municipal officials, in addition to social workers, to conduct socio-economic assessments and verify applications for municipal support programmes.
The municipality said the change aims to improve efficiency and expand access to indigent support services. – SAnews.gov.za
