GMM budget is R3.2b for 2024/2025 financial year

SECUNDA – The Govan Mbeki Municipality (GMM) approved the 2024/25 budget comprising R3.1b for operating expenditure and R117.6m for capital investment programmes.

The total operating income budget is R3.2b, resulting in an operating surplus of R111.5m. After public consultations, the budget’s approval came during an ordinary council meeting held at Secunda Sasol Club on May 31.

Residents in the GMM will face these tariff increases for the next financial year. The tariff adjustments for the financial year 2024/2025 are as follows:

• Property rates – 4.9% as per the Consumer Price Index (CPI);
• Electricity – 9.86% as per NERSA guidelines;
• Water and sanitation – 5.9% as per Rand Water notice.
• Waste management – 4.9% refuse removal as per CPI;
• Miscellaneous – 4.9% as per CPI.

Water

• Tariff increase to community – 7.3% 5.9%;
• Rand Water increase to municipality 7.3% 5.9%.

Electricity

• Tariff increase to the community per NERSA guideline – 18.49%;
• Eskom’s increase to the municipality – 18.49%.

The principles and guidelines that had to be followed to compile the budget are:

• The Integrated Development Plan (IDP) was the primary point of reference for preparing the Medium Term Revenue and Expenditure Framework (MTREF) prepared and approved by the municipality, as per the Municipal Finance Management Act for 2024/2025.
•The previous budget of 2023/2024 was used as a baseline.
• CPI guidelines from the National Treasury were followed, except where specific sector increases are prescribed.
• Cost-reflective tariffs had to be developed.
• The guidelines also determined that strategies to reduce water and electricity losses need to be developed. The office of the National Treasury presented the financial recovery plan for the municipality and the findings to the council.

The treasury found the municipality is failing to honour and, therefore, is defaulting on its payment plan to bulk suppliers Eskom and Rand Water.

The treasury said the GMM is failing to manage water and electricity losses but applauded it for its programme of installing electricity smart meters. The feedback is that this programme needs acceleration.

Other matters that concerned the treasury were ghost vending, the GMM’s failure to maintain its infrastructure and incorrect billing.

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