The Executive Mayor for Msukaligwa Municipality, Cllr Sipho Bongwe, recently presented the municipal 2015/2016 budget plan which will take effect on 1 July.
The municipality has a total revenue of R599 504 859 made up of R538 438 709 operating revenue and R61 066 150 in capital revenue. The total expenditure, however, is R736 488 560, resulting in a R136 983 701 deficit.
Challenges mentioned in the budget include a low payment rate of 25 per cent, due to non-payment, illegal connections, areas that are not metered and Eskom electricity provision in outside towns where the municipality is unable to disconnect electricity and water for non-payers. According to the municipality, the tariff structure is not cost reflective.
Budget expenditure challenges include increasing fuel costs, old infrastructure requiring maintenance, outdated equipment and vehicles and a high staff vacancy rate.
Bulk purchases of water and electricity, contracted services and salary costs account for 79 per cent of possible cash income.
Msukaligwa will be receiving R48 428 150 from the Municipal Infrastructure Grant (MIG) and R12 638 000 from the Integrated National Electrification Programme Grant.
Water projects will receive a whopping R34 200 000 for the drilling of boreholes in wards 8 to 16,18 and 19, extending water reticulation in Sheepmoor ward 11, the refurbishment of water treatment works in wards 12,13,14,15 and 19 among other things.
R14 228 150 has been set aside for sewer projects and R12 638 000 for electricity projects.
In the current financial budget year, councillors’ remuneration is set at a little more than R12 million and R162 891 231 has been set aside for employee related costs. Municipal contracted services will require R51 244 003 and the municipality will pay R204 776 545 for bulk purchases.
The municipality is concerned about the non-payment rate per town where in the 2014/2015 financial year, 64 per cent of Wesselton residents were not paying for their services,15 per cent in Ermelo, 48 per cent in Breyten, 79 per cent in Chrissiesmeer, 78 per cent in Davel, 83 per cent for Lothair, 93 per cent in Sheepmoor, 51 per cent for Warburton and 57 per cent for farms.
Tariff increases for the coming financial year include 12 per cent for sewerage and 10 per cent for both refuse removal and assessment rates.
Free basic services to subsidise 12 000 indigents amount to R17 823 000.
The 6kl free water for all households has been withdrawn for the 2015/2016 financial year and only indigents will be subsidised with the 6kl.
The water tariff also increaases by 12 per cent. A 12,20 per cent increase in electricity tariffs based on Eskom’s percentage is to be approved by NERSA.
The municipality has also reviewed its financial policies which include their credit control and debt collection policy, supply chain policy, free basic and indigent management policy and property rates, among others.
For more information on the municipal recovery plan, visit the municipal offices and website.
