Ugu finances healthy

2015-07-02 06:00

Ugu mayor and Son

Ugu mayor and Son

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UGU Distict Municipality mayor Ntombifikile Gumede delivered her state of the district address at the Port Shepstone Civic Centre on Tuesday night.

In her speech she informed municipality mayors about the achievements the district municipality­ has obtained in the past 2013/2014 financial year.

Gumede said the state of the district address reviews the distance the municipality has travelled towards implementing the mandate given by the community during the 2011 local government elections.

“I am pleased to say that we have managed to do more to implement the commitments we made since we came into office.”

She said the address also gave her an opportunity to report to the people the vision for the future of the district.

The mayor touched on the most important factor that comes with running a municipality - the financial aspects and position.

The mayor admitted that the municipality was under a lot of strain, but today the situation has improved.

“The municipality has improved its audit opinion from the disclaimer in the 2012/13 financial year to a qualified audit opinion in 2013/2014 year.”

She said they still a challenge when it comes to debt collection and managing revenue­.

“The debt collection ratio is currently at 87% and council has adopted revenue enhancement and debt reduction strategies­ which are currently under implementation,” said Gumede­.

She encouraged people to pay for services as the municipality depends on them to sustain a healthy financial position.

One of the other major challenges that affects the finances of the municipality is illegal water connections.

Council has granted amnesty on illegal connections and communities have been urged to report to the municipality to qualify for the amnesty.

She also announced the total­ budget for the next financial­ year, approved by council.

“Council has approved a total budget of R1 194 342 721 with an allocation of R395 9072 920 for capital investment and R798 369 801 for the operational budget,” said Gumede.

In closing the mayor thanked mayors of the six municipalities­ under the district municipality, municipal manager and the staff for their hard work and dedication in ensuring that the municipality stays in a healthy financial position

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