Covid-19 impacts on municipal finances
George residents will have to fork out between 5% and 6,5% more for municipal services in the next financial year. This includes a rise of 6,22% for electricity, 6% for water, 6,5% for sanitation; 6,5% for refuse and 5% for general tariffs. After several attempts over the past few weeks to get a quorum and with a court order ensuring that all councillors attend and stay for the duration of the meetings, George now has a budget in place. In addition, the way has been paved for the widening of the bridge over the N2 to Thembalethu.
Two consecutive electronic council meetings were held on Tuesday to table and approve this year’s adjustment budget and next year’s budget, respectively. The meetings were interrupted so often due to a lack of internet connectivity that the first had to be temporarily adjourned. After a short investigation it was established that the problem was occurring all over the Western Cape.
Adjustment budget
The adjustment budget was approved during the first meeting, paving the way for the widening of the Thembalethu bridge. Tabling the adjustment budget, Mayor Leon van Wyk said that the municipality had received a Public Transport grant of
R82-million to be utilised as the municipality’s contribution to Sanral for the widening of the bridge.
The amount needed to be transferred to Sanral on the same day (Tuesday). Opposition parties welcomed the news.
Budget is ‘interim’
In his budget speech, Van Wyk said the delay in tabling the
2020/2021 budget was brought about partly as a result of the Covid-19 pandemic and its effects internationally, nationally and locally within George.
The lockdown, which has been in place since March, has impacted on the tabling of the draft budget, the participation process and the tabling for approval of the budget at different levels.
He said that, while the budget has been deemed to be credible and funded by National Treasury following its budget engagement with the municipality last week, the status needs to be considered an “interim” budget in view of the continuous assessment of Covid-19 on the finances of the municipality.
The way has been paved for the widening of the bridge over the N2 to Thembalethu.