Durban's newly incorporated rural areas are expected to place a huge strain on this year's eThekweni unicity council budget.
The council was feeling the pinch of taking on the new areas, which have expanded the metro region by 68 percent but has led to only a small growth in overall rates revenue, according to a draft budget plan discussed by councillors this week.
Largely rural or township areas, the new regions have poor infrastructure and as a result property values are generally low, contributing virtually no revenue into the rates pot.
The city, however, is still expected to deliver services to these communities.
The budget plan shows that city authorities are trapped between the horns of a dynamo, in that they have to meet the basic needs of the people. At the same time it needs to attract investors and keep the city on a par with the world's best.
In an attempt to achieve a balanced, deficit-free budget, the council is in the process of applying for R45-million from the State Treasury in respect of a Restructuring Grant.
Another negative factor on the budget was that new business developments, such as the Gateway shopping mall and the Village Green casino complex, were at this stage only contributing a "meagre" one percent to the unicity's rates coffers.
In addition, the city's income, drawn from water, electricity and rental tariffs - excluding rates - had increased marginally by only 2,7 percent, instead of the desirable six to seven percent increase.
That was because the tariffs were not keeping pace with the increase in expenditure and were not in line with inflation.
The plan is to up electricity tariffs by 6,5 percent, water by 9,9 percent, housing rentals by five percent. Collectively, these increases translate into a percentage higher than last year's increases.
A seven percent salary and wage increase for the unicity's employees was, according to the draft plan, another negative factor.
It also appears the budget will be unable to help officials fill the at least three thousand vacant posts in most unicity departments.
The current financial situation is such that only R50-million has been provided for new and vacant posts. But R400-million was required in order to help fill the positions.
In the run-up to the passing of the budget, the council will engage in a consultation campaign and invite inputs from ratepayers and the private sector.