Paul Swart, the Mayor of one of the best municipalities in the Western Cape, Cape Agulhas Municipality (CAM), shared the approved 2023-’24 budget last week.
He highlighted that CAM was committed to the following major focus areas: youth development; development and upgrading of recreational facilities; social development and related projects; local economic development (LED); beautification of communities; sport development; uplifting and supporting the elderly; safety and security of the community and job creation initiatives/programmes.
“To achieve the goals in the focus areas identified,” the Mayor said, “it is imperative that we spend at least 95% of our budget allocations, tighten our oversight responsibility in every department, be open-minded, responsive and caring and to work closer as a collective and respect one another’s job and responsibility.” The increases for the basic services are:.Property rates: These cover the cost of the provision of general services. Determining the effective property-rate tariff is therefore an integral part of the municipality’s budgeting process.
The proposal for the 2023-’24 financial year is an average increase of 6% to 8% on the property rates revenue budgeted, based on the adjustment budget information for the 2022-’23 financial year. “This, in effect, means no rates increases are anticipated for the financial year due to the new valuation roll with a subsequent reduction in the c/R value to accommodate property value increases,” Swart explained.. Sale of water and impact of tariff increases: With effect from 1 July, with the implementation of the new budget and tariffs, the municipality implemented a significant change that will impact most households within the municipal areas if implemented. “Historically all municipal residential households received 6 kl free water monthly. Standard practice with most local municipalities is that this benefit is mostly only afforded to the registered indigents on the municipal database.
The municipal administrative, after numerous debates, decided to implement the following as part of the budget process: The 6 kl free water will only be available to households registered on the municipal indigent database register. All other households who historically also received the 6 kl free water will only be given 3 kl free with the implementation of the 2023-’24 financial year, and this benefit will be reduced to 0 with effect from the 2024-’25 financial year. An average increase of 6% (in line with projected CPI) in the water tariff is proposed for the 2023-’24 financial year.. Sale of electricity and impact of tariff increases: Based on the final approval from the National Energy Regulator of South Africa (Nersa) the municipality factored a 15,1% icrease into the projections. .Sanitation and impact of tariff increases: An average increase of 6 to 7,81% in the sanitation tariff is proposed for the 2023-’24 financial year. This is in line with projected CPI and is required to ensure the service provides a surplus to provide support to the capital funding requirements associated with the service.. Waste removal and impact of tariff increases: An average increase of between 6% and 7,38% in the refuse-removal tariff is proposed for the 2023-’24 financial year. The service is currently being operated at a deficit (also taking into account the municipality’s obligation to rehabilitate landfill sites).
Copies of this document can be viewed in the foyers of all municipal buildings, all local public libraries or on www.capeagulhas.gov.za
