Power outages, poorer quality drinking water, fewer refuse collection routes and a lack of critical repairs to sewage systems will be a likely outcome of a R372-million cut to this year's utility services budget.
And the directorate has been warned that there is no guarantee that these funds will be back on the budget in the next financial year.
Concerned officials from water services, solid waste and electricity services have written to city manager Achmat Ebrahim about the risks of postponing projects on their respective budgets to future financial years.
The city's R6,2bn budget has been cut by R600m because of the global economic crisis and caution from the National Treasury that municipalities had to "align" their spending plans to their expected revenue in their adjustments budgets.
There has also been a "downward trend" in service payments, an important income-generator for the city.
The city council last week approved a recommendation to delay externally funded projects to future financial years. This will affect all the city's directorates.
According to reports submitted yesterday to the city's utility services portfolio committee, water and sanitation's capital budget will be slashed from R576m to R176m, which could affect the city's ability to refurbish or replace ageing infrastructure.
This could affect the quality of the city's drinking water.
An amount of R74m has been cut from the pump stations and outfall sewers.
"This will lead to increased bursts, blockages, spillages, possible collapses with a consequential increase in repairs and maintenance," noted the report.
There could also be environmental consequences if pollution gets into wetlands and rivers.
Housing developments in Bellville and Century City may have to be put on hold if wastewater treatment and other infrastructure projects have budget cuts.
The solid waste budget has been cut by R88,9m with funds deferred to the next financial year.
Nineteen refuse collection compactors have to be replaced in the current financial year to maintain current service levels.
If the orders of these vehicles have to be delayed because of budget deferments, "we will not have service delivery in certain areas", the report said.
The budget cut of R50,3m for electricity's network infrastructure could affect the city's ability to provide supply to new developments, such as at Century City, and consumers risk extended power outages.
A cut of R20m for the Loch Road substation upgrade would put electricity supply to the southern suburbs at "significant risk" with a failure affecting up to 80 000 residential, commercial and industrial consumers at a cost of R50m.
Utilities executive director Bulumko Msengana said the city was facing a "huge cash flow problem".
He said: "If we don't take measures, extreme measures, we'll find ourselves in a much worse situation."
But Amina Kariem of utility services said the budget deferments would have an impact on service delivery.
Mayoral committee member for utility services Clive Justus said the drop in payment collection ratios were a warning sign that the city had to be financially prudent.
A one percent collection drop meant R150m less for the city's coffers.
However, Justus said the current utility services budget, after deferments, was still higher than previous years.
- Cape Times
And the directorate has been warned that there is no guarantee that these funds will be back on the budget in the next financial year.
Concerned officials from water services, solid waste and electricity services have written to city manager Achmat Ebrahim about the risks of postponing projects on their respective budgets to future financial years.
The city's R6,2bn budget has been cut by R600m because of the global economic crisis and caution from the National Treasury that municipalities had to "align" their spending plans to their expected revenue in their adjustments budgets.
There has also been a "downward trend" in service payments, an important income-generator for the city.
The city council last week approved a recommendation to delay externally funded projects to future financial years. This will affect all the city's directorates.
According to reports submitted yesterday to the city's utility services portfolio committee, water and sanitation's capital budget will be slashed from R576m to R176m, which could affect the city's ability to refurbish or replace ageing infrastructure.
This could affect the quality of the city's drinking water.
An amount of R74m has been cut from the pump stations and outfall sewers.
"This will lead to increased bursts, blockages, spillages, possible collapses with a consequential increase in repairs and maintenance," noted the report.
There could also be environmental consequences if pollution gets into wetlands and rivers.
Housing developments in Bellville and Century City may have to be put on hold if wastewater treatment and other infrastructure projects have budget cuts.
The solid waste budget has been cut by R88,9m with funds deferred to the next financial year.
Nineteen refuse collection compactors have to be replaced in the current financial year to maintain current service levels.
If the orders of these vehicles have to be delayed because of budget deferments, "we will not have service delivery in certain areas", the report said.
The budget cut of R50,3m for electricity's network infrastructure could affect the city's ability to provide supply to new developments, such as at Century City, and consumers risk extended power outages.
A cut of R20m for the Loch Road substation upgrade would put electricity supply to the southern suburbs at "significant risk" with a failure affecting up to 80 000 residential, commercial and industrial consumers at a cost of R50m.
Utilities executive director Bulumko Msengana said the city was facing a "huge cash flow problem".
He said: "If we don't take measures, extreme measures, we'll find ourselves in a much worse situation."
But Amina Kariem of utility services said the budget deferments would have an impact on service delivery.
Mayoral committee member for utility services Clive Justus said the drop in payment collection ratios were a warning sign that the city had to be financially prudent.
A one percent collection drop meant R150m less for the city's coffers.
However, Justus said the current utility services budget, after deferments, was still higher than previous years.
- Cape Times
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