KAROO NEWS - The main challenge Dr Beyers Naudé Local Municipality (DBNLM) officials faced while adjusting the 2022/23 budget, was ensuring sufficient cash flow to carry the day-to-day operations.

After many discussions and amendments, DBNLM should in theory be able to make ends meet and the budget was approved by Council on 28 February.

Officials also managed to reduce the foreseen deficit from R49 412 710 to R15 200 790.

Councillor Ewald Loock explains that since a municipal financial year runs from 1 July to 30 June, a mid-year adjustment is standard procedure. "Remember, this is not a new budget. It is merely checking, shuffling and balancing the existing budget to make ends meet until the end of the current financial year."

In the first draft, no provision was made for interest charged by Eskom, so the original budget of R505 511 339 was increased to R531 979 335.

This means the operational surplus decreased with R49 412 710 and the overall surplus decreased from R11 267 206 to a deficit of R15 200 790.

Adjustments
Several adjustments had to be made - capital projects had to be reshuffled; information technology communications; contract services, specifically security services (the access control budget); vehicle expenses, bulk purchases, repairs and maintenance; and general expenses had to be shifted and/or decreased.

The adjustment budget also had to allow for certain unavoidable increases.

The main factors influencing expenses are load-shedding, higher fuel prices and the interest charged by Eskom.

"Load-shedding causes havoc. Fuel for generators to keep the computers going and the carting of water due to pumps not working during load-shedding, are unforeseen, new, constant expenses," says Councillor Adriaan van Heerden.

Council agreed that expenditure has to be curbed at all cost until 30 June.

Director of Financial Services, J Joubert, emphasised that any further changes would impact service delivery going forward.

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