SECUNDA – The Govan Mbeki Municipality held a public participation meeting at the Lillian Ngoyi Centre on 13 April as part of the IDP and Budget Consultation process for the 2016/2017 financial year.
The executive mayor, Ms Lindi Masina, addressed the nearly 200 residents who were in attendance.
This meeting was convened to address the proposal of the draft budget, but the mayor also spoke about two contentious issues, namely the Eskom energy crisis and debt, and the valuation roll.
With regard to the Eskom energy crisis, she confirmed that the Govan Mbeki Municipality is in negotiations with Eskom to come to a payment agreement.
“Eskom indicated its willingness to stay the interest on the capital debt from the date of signature of the new repayment agreement.
“At present the municipality is paying upwards or R2.6 million per month in interest and such a stay of interest will bring welcome relief to the municipality.”
Ms Masina indicated that Council is in discussions regarding the valuation of property in the Govan Mbeki Municipality and that they would reach an agreement on the increase in municipal property tax rates.
The draft budget was presented by the chief financial officer, Mr Johnny Mokgatsi.
He explained the budget document and drew the community’s attention to certain increases and industry specific rates.
The water tariff is set to increase by a proposed 11.9 per cent as this is the increase levied on the municipality by Rand Water.
Electricity will increase by 7.6 per cent, although Eskom has increased the cost of electricity by 9.4 per cent.
This has been the trend for the past few years, with Eskom increasing the cost of electricity by more than 14 per cent in 2015, but the municipality only increased the cost to consumers by 12.7 per cent.
The municipal property rates are set to be increased by 12 per cent, even if the value of certain properties has increased by 100 per cent.
Finally, the waste management fee is set to increase by six per cent, as will the cost of miscellaneous services as per the Consumer Price Index.
The basic customer account for average consumption is estimated at R1 120-26 per month for 2016 and R1 137-69 for 2017.
The final budget will be agreed upon at the next council meeting that was preliminary scheduled for 26 May.
Residents who want to object or peruse the draft budget document, can visit www.govanmbeki.gov.za.
