The J.B. Marks Municipality approved the 2023/24 annual budget by a council vote during a special council meeting at the Dan Tloome Chambers on Thursday, 8 June.
Thirty-five council members voted for the budget to be approved and adopted, while 18 members (DA and FF Plus) voted against approving the budget, which they deemed unfunded. The EFF Council members abstained from voting.
The executive mayor of J.B. Marks Municipality, Gaba Thithiba Ka Qhele, reiterated in his budget address on the Medium-Term Revenue and Expenditure Framework that the budget had been revised in the past week after data streams were corrected regarding capital expenditure in the budget.
“The budget has been prepared conservatively to ensure sufficient revenue will be raised and appropriated to fund the expenditure items. The operating budget reflects a net surplus of R280 million. The latter projected surplus is based on revenue, which is anticipated to be billed,” stated Ka Qhele in his address.
“Capital expenditure has been budgeted at R189 million, made up of R137 million in conditional grants from the National Government and an additional R56 million from the internal municipal reserves,” explained Ka Qhele.
Here is a quick run-through of the main aspects of the 23/24 budget:
- Water provision tariffs go up seven per cent as of 1 July 2023.
- Registered indigents will receive a 50 per cent rebate in terms of the Indigent Policy.
- The municipality will award a 75 per cent tax rebate on properties of certain classes like registered public benefit organisations.
- The municipality will increase its tariff on electricity sales by nine per cent, three per cent above the general increase on all other revenue-raising items and 9.65 per cent less than the 18.65 per cent Nersa-approved increase. This implies that the municipality will carry and fund the difference of 9.65 per cent from its other revenue-raising sources.
- Electricity tariffs:
- R5.1 million has been set aside for Small, Medium and Micro Enterprises in the 23/24 financial as a means to improve job creation. Currently the unemployment rate in the province stands at 53%.
Internally Funded Projects:
Municipal Infrastructure Grant Projects:
Opposition parties are astonished that the budget was approved for the second year in a row without realistic funding and revenue streams.
“The DA’s opposition to the budget is supported by National Treasury’s report to Council that the budget was “not credible, was unfunded and unsustainable,” stated DA councillor in J.B. Marks, Madra de Bruin.
The Freedom Front Plus also said in Council that the budget address as well as tariff documents were received late and that the budget should not be approved now.
FF Plus ward councillor, Ian de Villiers, added that it was worrisome that there was no long-term plan regarding the municipalities’ finances.
The DA agreed with this sentiment.
“National Treasury also recommended a credible financial plan be submitted to ensure the budget is credible and sustainable. Unfortunately, no such plan was made available,” stated De Bruin.
According to the DA, a properly-managed integrated development plan (IDP) public participation process should have happened long before the draft budget was tabled for consideration.
“Through clever accounting, Mayor Gaba Thithiba Ka Qhele budgeted R406 million in depreciation and debt impairment. This is a desperate attempt to hide that the budget is unfunded. National Treasury has only made R113 million available in funding to J.B. Marks, a reduction of R124 million allocated last year,” added De Bruin.
*The Herald will provide a detailed analysis on the new tariffs and budget in due course.
