The draft budget for the 2015/2016 municipal financial year – due to start on July 1 – is out for public comment and it is not good news.
The proposed hikes in tariffs are: rates up 8%, refuse removal up 7% and electricity up 12%.
The total budget is R264 146 454.
The capital budget is R43 000 000 with Municipal Infrastructure Grant money from the State contributing R14 000 000.
In addition, in his notes, Mayor Mahaye warns that the theft of electricity is running at about R1-million a month and if this is not stopped it could cripple the municipality.

Other challenges noted by Mayor Mahaye include the vacancies in senior posts currently occupied by ‘actors’.
“These managers have put much effort into managing these departments. Efforts are being made to fill other key positions.”

An independent firm is currently auditing all meters and those who have tampered have been fined.

“Total electricity losses in the previous financial year have amounted to over R12-million. We have made some progress since hiring an independent firm of auditors to check all meters and bring offenders to book.
“Management will continue to monitor this and losses and theft such as this impacts on the financial stability of the municipality.”
Other challenges noted by Mayor Mahaye include the vacancies in senior posts currently occupied by ‘actors’.
“These managers have put much effort into managing these departments. Efforts are being made to fill other key positions.”
Ongoing non-payment of service charges has meant that the municipality has had to set aside R10-million for bad debt which consumers have to pay for.
Salaries and allowances make up 32% – or just over R85-million – of the total operating budget.
Response from ERA
In his reaction, FC Bester, chairman of the Endumeni Residents’ Association, said it was a disappointing draft budget. “All tariffs are way above inflation.
The only one we know they have no power over, are the electricity charges. There is always much talk about trimming expenses but talk is cheap.