#ReportBack: Sensible budgeting is critically needed
Of further concern is the inadequate allocation of R74-million for repairs of existing infrastructure. Regular water leaks, burnt out pumps and telemetry systems at reservoirs not working, led to water losses of R100-million in the last financial year alone.
The iLembe DA has some concerns regarding the municipality’s R1.5-billion budget.
Although the increase on water and sanitation is 4%, one must take into account new valuations on property were implemented. This resulted in an increase above the consumer price index, but no measure was put in place to cushion the increase in the form of a rebate.
The DA calls on council to develop a staggered policy to assist those who are older than 60 and not indigent.
A 25% rebate on sewer charges for ratepayers older than 60, and 30% for those older than 65, should also be considered.
The DA calls on council to review the indigent policy every two years instead of annually to eliminate unnecessary administration costs and delays in processing indigent applications before one qualifies for the standard benefits.
Indigent households should always receive 10kl of free water every month even if they have been disconnected, which is not the case currently. A policy review is required to give effect to basic human rights.
The threshold to qualify should be upped to R4 500 per month in combined income.
Of further concern is the inadequate allocation of R74-million for repairs of existing infrastructure. Regular water leaks, burnt out pumps and telemetry systems at reservoirs not working, led to water losses of R100-million in the last financial year alone.
Employee related costs are R304-million, whereas main internal revenue through water and sanitation is R288-million. According to revenue collection trends, only half of that amount will be realised.
It is clear the municipality is not sustainable and survives on grant funding from province and national government. Only critical posts should be filled.
The inability to collect monies for services provided is scary – a staggering R583.6-million is owed to council. More aggressive collection campaigns need to be put in place without fear or favour.
Selective write-offs before elections set a bad precedent. R70-million was written off in October 2021 alone, just days before the local government elections.
These all have an impact on the budget and service delivery of the municipality and should be urgently addressed.
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