GEORGE NEWS - George Municipality's mid-year adjustment budget was approved by Council during a special council meeting last Friday afternoon, 23 February.

The mid-year adjustment budget process allows municipalities to respond to changes that have affected the planned local government spending for that year. "Various items in the capital and operating budget for the 2023/2024 financial year needed adjustments, but without any major changes," said Portfolio Councillor for Finances Dirk Wessels.

Budget bomb

The decrease in electricity sales due to load shedding is still one of the biggest blows to the municipality's operating revenue.

In his address to Council, Mayor Leon Van Wyk said the fact that George has been affected by the ongoing load shedding has resulted in less revenue derived from electricity sales. "This has been coupled with increasing operational costs and a reduction in grant funding from National Treasury throughout the country," said Van Wyk.

"George capital projects funded by grants have been prioritised over those funded by own revenue and debt-based funding (loans), to retain the grant funding which is accompanied by strict guidelines and time frames. Operationally money has been moved to keep up with the increase in costs, an example being the chemicals required for water treatment."

Operational budget

The operating revenue adjustment of R82 387 079 is mainly due to the following: a decrease in the electricity service charges; increase in water service charges due to the impact of the emergency tariffs on revenue; additional grants received; an increase in interest on investment due to excess funds being invested with a higher interest rate, and transport fees being decreased due to the impact of not all Go George routes in Thembalethu being rolled out as planned.

Nice to know

• Provincial Treasury has allocated an additional R63,117m during its adjustment budget
• Grant funding is decreased with R8 381 914 from R742 847 022 to R734 465 108.
• External funding (Extended Fund Facility) for 2023/24 is therefore reduced with R102 193 828 from R396 698 257 to R294 504 429.

Visit from treasury

A delegation of National Treasury officials visited George last week for the 2023/24 mid-year budget and performance assessment which focused on the state of services, including electricity, waste, and water and sanitation services.

A full day of interactive presentations by each directorate was held on Thursday 22 February, followed by site visits on Friday 23 February to the existing 20Ml/d water treatment works which has been upgraded, the new 20Ml/d module, a new residual handling facility and the clear water rising main which is being upgraded.

The group also visited the Garden Route Dam pump station suction pipe upgrade project and the 1MWp solar PV plant.

George CFO Riaan du Plessis said the session last week provided National Treasury with a valuable opportunity to get a clearer understanding of the practical day-to-day challenges the municipality deals with in ensuring effective service delivery in the current difficult fiscal climate of high interest rates and costs of living. "The visit further gives opportunity for National Treasury to visit in person the projects that are funded by the various grants allocated in the Division of Revenue Act," said Du Plessis.

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