GEORGE NEWS - The George mayor, Melvin Naik tabled the draft Capital and Operating multi-year budget for 2019/20 to 2021/22 and the draft reviewed 2019/20 Integrated Development Plan (IDP) at a Special Council meeting on Friday 29 March.
The mayor said that although the global economic growth outlook has improved the local economy’s 2018 projected GDP growth forecast has been revised down from 1,5% to 0,7% in 2018 with a moderate improvement over the medium term, 1,5% in 2019 increasing slightly to 1,7% in 2020 and 2,1% in 2021.
The municipal operating expenditure has increased from R1 963 bil this year to R2 282 billion for the 2019/20 financial year. The increase in expenditure is mainly due to:
Contracted services
This is mainly due to the increase in the budget for operational expenditure on housing projects and the GIPTN of R649 mil. Bulk purchases for electricity increased by 15,63% to R498 mil as well as an additional R15 mil for the regional landfill site. Bad debts to be written off in the 2019/20 budget is R71 mil.
The proposed tariff increases for the 2019/20 financial year is:
Property rates 7,5%
Electricity 14,6%
Water 6,0%
Sanitation 8,5%
Refuse 9,0%
Other 5,0%
The National Energy Regulator of South Africa (Nersa), has not published its final “Municipal Tariff Approval Process for the 2019/20 financial year”. However it is anticipated that Nersa will propose a 14,6% increase for municipal electricity tariffs.
The draft Capital Budget of R344 mil prioritizes the upgrading of the sewerage treatment works with loans of R84,4 mil in the next three years. The housing development in Thembalethu is one of the main developments putting pressure on the town’s waterworks as well as the sewerage treatment works. The electricity infrastructure is also not sufficient for the housing projects. The Western Cape Department of Human Settlements has indicated that they are willing to assist with possible grant funding of the housing project and its impact on the bulk infrastructure.
The draft budget which is on the municipal website will be taken to the residents for scrutiny and comment through the IDP meeting to be held in every ward during April and May.
The budget must be accepted by council before the end of May.
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