GEORGE NEWS - Residents need to steel themselves for possible steep increases in municipal tariffs. This became clear when George Mayor Leon van Wyk tabled the multi-year Draft Capital and Operating Budget for 2022/23 to 2024/25 on Monday 28 March at a special council meeting.

Among the proposed increases are:

• Electricity tariffs: 8%
• Property Rates: 8%
• Water: 10%
• Sanitation and refuse: 9%

According to Van Wyk, other service tariffs will generally increase by 6%, although each individual tariff has been re-assessed to become more cost reflective, as many of the present tariffs are not in line with the costs of the services.

Van Wyk said the determi-nation of tariff increases is largely driven by the electricity bulk purchase increases of 9,61% approved by Nersa, and salary increases of 4,9% approved by the bargaining council for municipal employees.

"The increased emphasis that we are placing on infrastructure renewal and expansion will also require adjustments to tariffs in excess of the generally regarded 3 to 6% inflation band."

He said the tabled budget needs to be credible. Activities must be consistent with the Integrated Development Plan. Given the financial constraints, service delivery and performance targets must be achievable, while revenue and expenditure projections must be consistent with past performance so as not to jeopardise the financial viability of the municipality.

"We have accordingly taken into account the state of the SA economy as well as that of the region and George, the stage of post Covid-19 recovery and its impact on our community. At the same time, we have to address our ageing infrastructure and the requirements to increase the treatment capacities for the supply of water and for wastewater."

Towards the end of 2021, the municipality learned that a BFI (Budget Facility for Infrastruc-ture) grant of almost R1,2 billion has been awarded to George to upgrade our water infrastructure.

George is now on the threshold of becoming a significant intermediate city.

He said the draft budget shows that some bold decisions have to be taken to place George on a path towards infrastructure renewal and growth, specifically regarding its capacity of managing wastewater and water, becoming energy secure, improving safety, and being "green" and clean.

"This budgeted programme over the next three years, we trust, will increase economic activity, grow jobs and position George as a significant magnet intermediate city within South Africa."

Dirk Wessels, member of the mayoral committee for finance and strategic services, told George Herald on Monday that the final budget will be tabled before the end of June. 

Usually not many changes are made to the draft budget. The community will still be allowed to make inputs and the final budget will come into effect on 1 July.

READ MORE: This is how some of the money will be spent

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