The mayor of the City of Mbombela (CoM), Sibongile Makhushe, tabled the R3.7b operating budget and medium-term revenue and expenditure framework for the 2022/23 financial year on May 30.
The DA rejected the budget on the basis that the current liabilities of the CoM, R24b, exceed the currents assets of R1.092b and these figures are only a full year forecast and not the actual standing of financial position.

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“Previous year audited outcomes the current liabilities will exceed this figure and operational expenditure will most likely also exceed the budgeted forecast. The budget as tabled by the executive mayor made no clear provision for funding this shortfall which will, as in the case of the last three financial years, put additional strain on the financial position of the municipality and will most definitely affect service delivery projects as well as operational commitments. The DA proposed that internally generated funds be used only for servicing outstanding creditors and maintenance of infrastructure,”said DA councillor, Sanley van der Merwe.

Other political parties approved the budget in the hope that it would speed up the service delivery in the City.
Makhushe indicated that the municipality’s service charge tariffs and property rates increase will be kept at 6% for the 2022/23 budget year.
This increase also takes into account the level of consumer price index, averaging 4.5%, and the inflation for various commodities such as transport and fuel.

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Eskom’s application was approved at 8.61 % for municipal bulk electricity purchase effective from July 1.
“In responding to the municipal developmental priorities, water supply accounts for 26% of the total operating expenditure budget. It also responds to public safety, waste and environmental management, electricity supply as well as roads infrastructure development and storm-water as municipal developmental priorities. The operating budget expenditure is biased towards service delivery departments that are key to the core mandate of the City,” she said.

In the same meeting the council rejected current projects with a variation order budget of 20% and decided that the matter should be referred to the municipal public accounts committee to be investigated and verified for its value for money.
The council is to convene another meeting within seven days to approve these before National Treasury reclaims the funds.

Some key projects to be implemented:
• R34m for the planned and reactive maintenance of the electricity network.
• R14m towards the planned maintenance and repairs of public lighting infrastructure.
• R12.5m for the formalisation of informal areas for revenue enhancement.
• R4m for the transfer of title deeds to the relevant beneficiaries and finally.
• R63m for the operations and maintenance of water infrastructure.

National Treasury has granted the CoM the total capital expenditure grants amounting to R484m for the 2022/23 financial year.
This includes R384m for the municipal infrastructure grant, R30m for the water services infrastructure grant, R10m for the regional bulk infrastructure grant, R1m for the neighbourhood development partnership grant, R55m for the integrated national electrification programme grant and R4.2m for the energy efficiency and demand side management grant.