After a tense debate last Friday, the Ngwathe Council, despite strong objection from the DA, approved the draft budget for the new financial year for public discussion this month. Service charges are proposed mostly to increase by 4.4%, except electricity.

Electricity might increase by 12,74% as a result of increases already announced by Eskom (although still subject to approval by NERSA, the energy regulator). Water charges are also proposed to rise by 9.85%, and property rates will change in accordance with the new property valuations.

The full new budget proposals are open for inspection at all municipal offices, and on Ngwathe’s official municipal website. They will be aired in public meetings throughout Ngwathe in the weeks ahead.
The DA in Council insisted that its opposition against the proposed draft budget, “forced through by the ANC majority” be formally recorded.

Councillor Arnold Schoonwinkel, the DA caucus spokesperson on Ngwathe’s finance, complained that councillors were being duped into poor decisions through assumptions.

He said the collection rate of billed invoices now was around 50%. “Yet we are being asked to believe that Ngwathe can push this up to 85% within three months – something it has not been able to do in 10 years. Even so operating revenue is projected to amount to R1.19b,” he said.

“This is not enough to cover projected operating expenditure of R1.25b,” Schoonwinkel told Council.

A projected operating deficit of R53.78m would remain, and legislation does not allow deficits,” he added.

Both the Freedom Front Plus and NgwatheRA (now AARON) also did not support the proposed draft budget, with AARON saying that they as a ‘matter of principle and in keeping the law’, do not support an unfunded budget.

Councillors once again emphasised that public input is of utmost importance in the process of ensuring that issues highlighted in the proposed draft budget, will be addressed. “Unfortunately, public participation meetings are poorly attended,” they said.