Municipal tariffs hiked by 6%
MUNICIPAL tariffs are set to go up on average by 5.96 percent from July 1 as the Sol Plaatje City Council yesterday tabled conservative tariff increases for the city.
The draft budget, which now has to go for public consultation was tabled at a special council meeting yesterday.
The final budget will be adopted in May.
The draft budget proposes a rates increase of six percent, an electricity increase of 5.95 percent, a water increase of 5.9 percent, a 5.95 percent increase for sewer and sanitation, and a six percent increase in cleansing and refuse collection.
In terms of electricity tariffs, the guidelines must still be issued by the National Energy Regulator of SA (Nersa).
In tabling the draft budget, the city’s executive mayor, Mangaliso Matika, pointed out that should the tariff increase proposed not be in line with Nersa, the assumptions will be reviewed immediately, and the budget will be corrected.
He added that a benchmark exercise conducted by the municipality on electricity tariffs in the city had been completed and this report will come under discussion soon.
According to Integrated Development Plan 2017 to 2022, the society and organisational needs in the next five years are just over R6 billion. This includes an estimated R2 billion for the development and construction of a purification plant in Douglas or any other feasible alternative in the Orange River for the city.
According to Matika, the report on the proposed Orange River plant will be presented to council in due course.
Among the flagship projects for 2018/19 to 2020/21 (the next Medium Term Revenue and Expenditure Framework) is the completion of the Gogga Pump Station upgrade; the R425 million upgrading of stormwater infrastructure in Galeshewe, which was started in 2017 and will continue for the next three years and will also see as part of the project the upgrading of the Tlhageng Dam; the R12 million upgrading of the Galeshewe and Carters Glen substations; and the upgrading of the current transformers at Riverton in preparation for the commissioning of the new water purification plant.
A number of areas will also be electrified with effect from July 2018, including 949 houses in Snake Park, 300 in Platfontein, 48 in Kutlwanong, 139 in Santa Centre, 106 in Ramorwa and 49 in Mathibe Street.
The ongoing Ritchie Bulk Water Supply Augmentation has started and an amount of just over R10 million has been allocated to complete the project in the coming financial year.
“This project will unlock housing development in Ritchie as well as water supply capacity for both consumption and the installation of flush toilets in all housing development projects that are upcoming,” Matika pointed out.
“The link services for water and sanitation in Lerato Park has also been awarded and we are awaiting confirmation from MIG offices with regards to other administrative matters surrounding this project. The contractor is expected to take over site before May 2018 and continue into the 2018/19 financial year. The completion of the link services will enable the Department of Coghsta to proceed with Phases 3 to 5 of Lerato Park.”
A total of R23 million of MIG funds will be invested in resealing and paving of roads in various wards in the city, while R14 million has been allocated for the construction of toilets to replace the zinc toilets in Kutlwanong.
A total of R23 million has also been set aside for the city’s pipe replacement programme, which is aimed at fixing leaks and reducing water loses.
Matika pointed out that the plight of homelessness continued to create havoc for cities, leading to land grabs, invasions and disagreements with communities. “South Africa is for all of us, we belong here, and we stay here.”
In an attempt to provide security of tenure, the municipality has identified various areas with the potential for human settlements.
“Over the coming three years the municipality will embark on the process of the formalisation of approximately 5 500 low cost housing and roughly 300 middle income erven throughout the municipality.
“This will assist in ensuring that those who cannot afford bonds from major retail banks and also do not qualify for the BNG (Breaking New Ground) houses, are afforded an opportunity to acquire property and develop their own houses, with government assistance through the FLISP program.
“This will also redress the ever growing number of service delivery protests whilst individual households’ security of tenure is realised.”
He added that there were also a number of proposed private investments on the cards in Kimberley, including student accommodation.
“Given the pace of the growth of the university in recent years, there has been a need to look at creating investment opportunities in the student accommodation area. We will make the announcement in this area at the appropriate time as this needs to managed with the involvement of the university.”
Other planned investments include the third phase of the university (recreational facilities and ancillary uses at Hoffe Park), office and an optician in Mac Dougall Street and the development of 90 residential flats in Petrus Street.
“A major catalytic initiative will soon be announced for the planned development along the R31. This development should create much needed catchment along this very busy route for all passing motorists, while creating a new hub for economic growth.”
In terms of government investment, Matika added that it was anticipated that investment in the development of BNG Houses in Diamond Park would continue as funded and developed by Coghsta, while other projects include the renovation of a primary school in Greenpoint by the Department of Public Works and the development of the proposed court and library in Ritchie.
The revenue budget for the next three years is projected at R6.58 billion, which is an average of just over R2.2 billion per annum, while the operational expenditure is projected at R6.55 billion.
An operating surplus
R28 million is projected.
“The operating surplus is critical to boost our contribution to the capital replacement reserve fund, to fund the capital projects planned for each financial year,” Matika pointed out.
Meanwhile, it is estimated that households benefiting from indigent support will increase to 15 000 in 2018/19, 16 000 in 2019/20 and 17 000 households in 2020/21.
The Indigent Policy allows for free basic services for qualifying households.
“For the next five years, the support shall be retained at 6kl of water per month, 50 units of electricity, fully subsidised refuse removal and sanitation service charges. The policy further considers special merits on rates for child-headed households, and those who are sick, disabled and vulnerable by providing an exemption for rates.” of