GEORGE NEWS - Both local businesses and George Municipality experienced a rough financial year in 2020 with a loss of income this region has not seen before.
In his address to Council last Thursday, 25 February, Mayor Leon van Wyk said their debtors' book has increased from R240-million in January 2020 to R320-million in January 2021 - an increase of R80-million or 33%.
"We are having to make additional provisions in our financial statements for the possible irrecoverability of these debtors. In turn this impacts on our cash," said Van Wyk.
The municipality also experienced some reduction in electricity sales as well as revenue from sources other than core services.
The adjustment budget that was tabled and approved enables the municipality to adjust revenue and expenditure originally budgeted for the full year, to deal with the circumstances experienced during Covid-19. On a request for comment, Van Wyk said the effect is that the municipality has made savings on budgeted expenditure items and delayed the filling of staff vacancies.
"Adjustments were also made to the capital budget originally proposed for the year that commenced in July 2020, resulting in expenditure amounting to R218-million being shifted into the financial year commencing in July 2021. The rationale has been to only account for budgeted expenditure that can realistically be completed by June 2021."
Van Wyk added that a decision was also made not to raise additional loan funding in the meantime.
The municipality is continuing with major multi-year projects to expand the waste water and water treatment plants to cater for continued growth in economic activity requiring these services.
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