POLOKWANE – Polokwane Mayor John Mpe tabled the municipality’s 2022/23 Integrated Development Plan (IDP) and budget, reflecting increases for services, except for water and electricity at last Thursday’s virtual council meeting.
The proposed tariffs will now, together with the IDP, be subject to a public participation process before the final budget is approved before implementation on 1 July and the first round of sessions for wards 19, 20, 21, 22, 23 and 39 will be held on Friday from 18:00 at the Jack Botes Hall to allow the public to give inputs.
According to the draft budget all tariffs for municipal services except water and electricity will increase by 5.3% (CPI plus 0,5%).
Water will increase by 9% (Lepelle Northern Water’s bulk price plus 0,5%) and electricity with 9.6%, as approved by Nersa.
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The total budget will be R5.1b, with R4.2b for operational expenses and R967m for capital expenditure and according to the report before council, a number of challenges had an influence on the budget.
The ongoing difficulties in the national and local economy, the increased costs of bulk water and electricity, National Treasury’s austerity measures with minimal growth in grant allocations and high backlogs in service delivery projects and further demands due to urbanisation were some of the factors cited.
The economic slowdown and unemployment impact on collection rates and the limited availability of own funding and the high inflation due to the European war also had an influence.
“To mitigate and adapt to these challenges, the municipality will have to resort to budgetary constraints and enforce better processes for better productivity and do more for less,” the report suggested and stated that a number of measures will be implemented to meet with these objectives.
A reduction in operational expenses and in particular where more own staff could be utilised instead of external service providers, downscaling of own funded capital projects, increases in tariffs (excluding water and electricity) in line with inflation and aligning electricity tariffs in line with Eskom’s time of used method to contain Eskom bills are some of the measures and will also include allocation of resources to revenue generating projects and to impose hefty penalties for consumers who break and illegally connect meters.
To sustain cash flow, credit control and cut-offs will continue on a daily basis (except Fridays) with a standby team to assist customers willing to settle their debts after hours.
Indigents will still enjoy some relief, with households with a combined income not exceeding R4 700 per month, child headed families and people with disabilities receiving 6kl of water, 100 units of electricity, refuse removal and sewerage per month free of charge.
A 100% rebate on assessment rates will also be applicable. Owners of residential properties who are dependent of social grants with a combined income not exceeding R9 000 per month will also qualify for an 80% rebate on assessment rates.
