The expected operating revenue totals R703 million and the operating expenditure, R840m.
The capital budget amounts to R102 m. The new budget takes effect next month.
Tariffs will increase as follow on 1 July:
•Water supply: 8.7%
•Electricity: 6.84% (pending Nersa approval)
•Assessment rates: 5.2% (with discount of 10% on residential and 5% on business properties).
•Sewerage, refuse removal, cemeteries, hire of halls, etc: 5%
Council also approved new financing of R30-million for its service delivery fleet for the new financial year.
The DA whip, Poloko Molaphene said the DA councillors rejected the draft budget as tabled since it did not comply with the legal requirement of stating ‘realistically anticipated revenue’ for the year.
He said this budget’s anticipated revenue was based on over-optimistic assumptions and not collection percentages actually achieved in previous years. The municipal manager, Mr Bruce Kannemeyer, defended the estimates, saying plans were in place to improve the revenue collection rate.
After a spirited debate, Molaphene asked for a vote and the names of the councillors who voted against the proposed budget to be recorded in the minutes. The three EFF councillors joined the DA in voting against the budget.
In her reaction, the caucus leader, Carina Serfontein said, ‘the dysfunctional municipality and extremely deficient service delivery are a direct result of poor administration and management. The budget is not achievable and our financial situation will not improve under this type of management.’
