GRAAFF-REINET NEWS — The Dr Beyers Naudé Local Municipal Council tabled its Draft IDP and Budget documents at a Special Council meeting on February 28 where several community members were present.
Mayor Deon de Vos emphasised that the tabling of these two documents were not without its challenges. He touched on the different tariffs that were used in the former municipalities.
"We are coming from different municipalities where different socio-economical circumstances prevailed. In these different municipalities, different policies and tariffs were used and this will reflect in the budget."
He continued by saying that tariff stabilisation will be phased in the next three years.
In terms of the electricity tariffs, Mayor de Vos explained that NERSA (the National Energy Regulator of South Africa) has set the increase fairly low for this year.
"Many municipalities, including this one, is reliant on its electrical sales to subsidise its income. Our biggest challenge in compiling this budget is the former Ikwezi and the non-availability of credible information which, in turn, provides a challenge in compiling a realistic budget," he said.
"Despite the challenges we have in the Budget and Treasury Department, including having a Chief Financial Officer in an acting capacity, we have nonetheless compiled the draft budget without any outside support."
In his report to Council, the Mayor explained that the objective of Council is to successfully implement the Municipal Integrated Development Plan, Service Delivery and Budget Implementation Plan, and its midterm revenue and expenditure budget framework in line with the legislative frameworks in place.
"This budget was prepared in line with the financial recovery plan, which needed to be compiled in light of the challenges facing the municipality.
"One cannot consider the budget without taking into account the impact and risk posed by the amalgamation process. The budget consultation process will have to be prioritised in order to finalise matters around employee cost, transfers from national government and financial management and systems."
The Mayor reminded the house that the effective management and conclusion of the amalgamation process is in the interest of all affected parties.
"In light thereof, this house will do its utmost to ensure that this Council is afforded the best chance to succeed in a challenging environment."
The Capital budget proposes to spend R51.8 million on Technical and Electrical Services. Of the total budget of R407.3 million, 72% is spent on Corporate Services, Infrastructure and Technical Services, as well as Electrical Services. Direct support to poor households is 6% of the budget (R22 746 145).
The Draft Budget also proposes the following increases:
• Property Rates: 6,4%
• Water: 6.4%
• Electricity: 1.88%
• Refuse: 6.4%
• Sanitation: 6.4%
• Other small tariffs: 6.4%
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