POLOKWANE – The city council adopted a multi-year budget during a council meeting held last Thursday.
Electricity, water, sanitation, and waste removal services will all increase by 10%, while a six percent increase in assessment rates will take effect and a 6% increase in property rates.
Property rate tariffs are expected to bring in an increased income of R379 000 while tariffs for electricity will bring in the most revenue at R1,03 million, water revenue at R284 000, sanitation at R60 000 and waste management will show an increased income at R69 000.
The municipal budget shows that the expenditure on the services have also seen an increase:
• Water bulk purchases have been increased by 9,47%
• Electricity bulk purchases have been increased by 6,6%
• Management and waste water will stay more or less in line with the previous year.
Other increases include:
• Borrowing cost is projected to be at 10,5%.
With these increases, the municipality hopes to increase capital to R30 million by 2017 and to R60 million the following year with the view of decreasing the municipality’s loan application to R134 million in 2017 and R71 million the following year.
The vision is to have a surplus of R861 million in the 2016/17 financial year, R798 million in 2017/18 and R981 million in the 2018/19 year as mapped out in the municipality’s growth objectives.
The total capital budget of R1,096 billion will be funded by the:
• Municipal Infrastructure Grant (MIG).
• Regional Bulk Infrastructure Grant(RBIG)
• Neighbourhood Development.
• Water Services Operating Grant (WSOS)
• Public Transport Infrastructure System Grant(PTIG).
• Borrowing.
• Municipal funds.
The basis service delivery measurement shows no increase in the number of households receiving and paying for water, sanitation, electricity and refuse where there has been steady growth in 2012/13 to 2013/14 and again in 2014/15.
riana@nmgroup.co.za
