Nelson Mandela Bay's 2015/16 draft budget has been approved.
It shows a 42 million rand surplus, which is a massive turnaround from the previous financial year's budget which reflected a 439 million rand deficit.
Councillor Rory Riordan, the head of Budget and Treasury in Mayor Danny Jordaan's new mayoral committee, announced at a special council meeting on Thursday that the lions share of the budget would go to engineering works, with 360 million rand being spent on capital projects for water and sanitation.
He said the close on 500 million rand turn around in the budget had been achieved through major cuts in staff expenditure.
He said that there was no crisis for now - however the budget would be very tight for the next two years.
Riordan added that tariff increases would also come into effect, rates on water would increase and sit at 13.5% and electricity at 12.2%.
These would most likely come into effect from the 1st of July.
Each ward would also receive an additional R200 000 for humanitarian aid.
Riordan said that the budget particularly prioritises township wards, sports, arts and culture to create opportunities to keep the young people occupied.
He says the long term aim is to claim Nelson Mandela Bay as the cultural city of South Africa.
