GEORGE NEWS - The cost implication of the planned regional landfill site on the outskirts of Mossel Bay, for the use of B-municipalities in the Eden District, is clearly visible in this year's draft budget. George Municipality wants to contribute an amount of R9,5-million for this project.
The multi-year draft budget for 2018/2019 indicates a steep 15% increase in the cost of refuse removal as from 1 July. The draft budget breakdown further proposes the following increases: property rates 9%, water 8%, electricity 6,84%, sewerage 8,5% and general tariffs 6%.
In reference to the 15% increase in refuse removal, an agenda point reads as follows: "Although negotiations regarding the costs of the proposed regional landfill site is still ongoing, the current tariff will have to increase. A thorough tariff modelling exercise was done and it was decided that the refuse tariff be increased by 15%."
According to a chart indicating the proposed increases for the Medium Term Revenue Expenditure Framework (MTREF), a yearly 15% increase in refuse removal seems to be on the cards for the next three years.
The proposed package of free basic services to the indigent households amounts to R653,34 per home per month and includes 70kWh electricity units, 6kl water as well as the basic water charge for free.
Tabled ... and tabled again
The draft budget was tabled and accepted during a council meeting on 28 March. However, Council had to meet again on Monday at a Special Council Meeting to retable the budget. This after the provincial treasury referred the draft budget back due to administrative discrepancies.
These pertain to the Municipal Standard Chart of Accounts (mSCOA) budget processes (administrative issues) and non-compliance issues, such as that certain tables, as prescribed in the Municipal Budget and Reporting Regulations, were missing in the report.
A change in the mSCOA budget processes, which requires more time to complete, was given as the reason why the documentation wasn't ready for the tabling of the draft budget at the council meeting on 28 March. The opposition parties took great exception to this, saying the incompetence of the officials who need to prepare these documents should be addressed.
"Why must the budget be retabled if its only an administrative discrepancy? We call on the mayor to fire these individuals. Their time is long overdue," said PBI Councillor Virgill Gericke. This viewpoint was shared by the ANC, EFF and FF Plus.
Capital budget
The total capital budget for 2018/2019 is about R348-million. The budget committee has given high priority to the upgrading of the sewage treatment works and has committed to take up loans to fund this project to the total of R81,525-million over the next three years (R44,685-million for 2018/2019 and R36,840-million for 2019/2020).
R14,4-million from George's own funding, the Capital Replacement Reserve (CRR), was earmarked for the raising of the Garden Route Dam project. The extension of the waterworks is also regarded as crucial, but has been moved out to the 2019/20 financial year due to the impact that the taking up of external loans has on the operating budget and tariffs. The rehabilitation of the old waste-water treatment works has been included in the budget to put back the 6 mega litre module in operations.
• The operating expenditure has increased from about R1,8-billion (2017/18) to R2,02-billion (2018/19).
• There is currently a process underway with Council for the GO GEORGE bus fare tariff to be reviewed and increased during the current 2018/2019 budget process. Council intends replacing the single ticket with a two-trip ticket. The two-trip ticket will be valid for 30 days. Benefits include that it minimises the opportunity for fraudulent usage of tickets.
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