Mogale City’s Draft Budget (Part 3): Rising service costs and more
In the recent budget, MCLM revealed that electricity tariffs are expected to increase by 11.3% – subject to approval by the National Energy Regulator.
With the Krugersdorp News simplifying the Mogale City Local Municipality’s (MCLM) recent Medium-Term Revenue and Expenditure Framework (MTREF), or the draft budget, part three includes a backdrop of slow national economic growth and rising service costs.
• Also read: Mogale City’s Draft Budget (Part 2): The role of IDPs in guiding service delivery
The budget cites that the National Treasury has lowered its 2024 economic growth forecast to 1.1%, with only a modest recovery expected in the coming years. Although inflation is cooling and household spending is improving slightly, many residents are still struggling to pay their municipal bills, putting pressure on local revenue.
The municipality faced several challenges while preparing its MTREF, as outlined in the budget. These include ageing infrastructure, high water losses, rising bulk water and electricity tariffs, and the ongoing impact of load-shedding, especially on local businesses and small enterprises.
The budget continued to manage these pressures; MCLM is implementing cost-containment measures and prioritising essential spending.
Electricity tariffs are expected to increase by 11.3% – subject to approval by the National Energy Regulator – while water tariffs may rise by 15.3%, pending national approval. However, MCLM has committed to keeping property rates unchanged for the next two years to ease the financial burden on residents, given the increase in property values in the new valuation roll.
Other planned increases include a 4.4% rise in refuse removal and other minor service charges, aligned with inflation. Despite these hikes, Mogale says it aims to keep tariffs affordable and continue offering free basic services to qualifying households.
All grant-funded projects will proceed only once the relevant funding has been officially allocated in line with national legislation.
Let us know what you think by emailing us at heinrichg@caxton.co.za/ krugersdorpnews@caxton.co.za.
