Not everyone was happy with the adjustment budget report for 2016/17 medium term revenue and expenditure framework report that Mr Linda Dhlamini, Lekwa mayor, presented to council on 28 February.
The ANC councillors welcomed the report that includes a total anticipated revenue of R575 966 112 which indicates a decrease in municipal revenue of R20 876 410.
Mr Dhlamini indicated that the adjustment budget seeks to propose a figure lower than the one that council approved.
He said the electricity revenue projected saw a R37-mil decline because of the smart meter project being halted.
According to him, the current deficit for the municipality has increased from R329-mil to R332-mil in the 2016/17 adjustment budget.
Mr Dhlamini also said it should be noted that it is not possible to further reduce the budget without affecting service delivery.
“This budget should be seen as a survival budget and unless the municipality can improve its revenue bases the situation will continue to deteriorate.”
He said the revenue side of municipal budgets will continue to be constrained, so the municipality will need to make some very tough decisions on the expenditure side.
However priority will still be given to:
• Ensuring that drinking water and wastewater management always meet the required quality standards.
• Protecting the poor.
• Ensure that public investment, services, regulations and incentives are focused in defined spatial area to optimise overall connectivity and access to opportunities.
• Provide clear signals to the private sector.
• Transport, human settlements, bulk infrastructure, economic infrastructure, land use management such as zoning, tax and subsidy incentives.
• Supporting meaningful local economic development initiatives that foster micro and small business opportunities and job creation, just to name a few.
Read the complete article in the next edition of the Standerton Advertiser.
