The municipal cash cow will fatten up nicely despite the nationwide lockdown, with new tariff increases announced by the council during a special sitting.

While rumours abound that the nationwide lockdown may be extended until August, residents of Middelburg should brace for a municipal tariff increase on July 1.
The total operating revenue is projected to increase from R1.76 billion to R1.92 billion.

The main sources of municipal revenue are property rates, electricity supply, waste management, wastewater management and water infrastructure.

The proposed revenue adjustments on the 2020/2021 budget are average increases of 5.8% on property rates, 8.1% on sewerage tariffs, 6.1% on refuse removal, 6% on water and 11.1% on electricity.

The increases will be implemented to cover the shortfall on the budget of R177.7 million with the total budget amounting to R2.61 billion, of which R808.6 million will be spent on the capital programme, and R1.93 billion on the municipality’s operational budget.

Over the next financial year the municipality will be spending:

R335.5 million on finance and administration.
R46.8 million on community facilities and social services.
R734.6 million on electricity services.
R17.1 million on planning and development.
R101.5 million on transport.
R111.6 million on water services.
R126.6 million on waste management.
R104.3 million on wastewater management.
R10.1 million on environmental services.
R65.5 million on sport and recreation.
R119.2 million on public safety.
R78 million on executive and council.
R25.9 million on licensing.
R6.7 million on municipal auditing.
The capital budget amounts to R2 billion over the next three financial years.
The main capital allocation for the coming financial year include:
R158.7 million for electricity services.
R198.8 million for water services.
R51.6 million for sewerage.
R17.3 million for refuse removal.
R92 million for roads.
R97.3 million on finance and administration.
R56.6 million for community and social services.
R21.5 million on sport and recreation.

With the increases, the municipality aims to source R413.5 million on property rate increases, R724.2 million on electricity tariff hikes, R84.5 million on waste management, R78.5 million on wastewater management and R117 million on water tariffs.

The first approval of the budget is set to take place on May 31, after the period for public participation has been extended to May 4 due to the national lockdown.
Presently all libraries and municipal offices, where the budget is open to public scrutiny, are closed.

The municipality is awaiting further announcements by the national government on the possible extension of the national state of emergency timeframe.