The approach for the compilation of the current budget (2022/23 financial period ending 30 June 2023), was to a large extent the continuation of another year, marked by the challenge of the severe economic impact of the worldwide pandemic since the start of 2020 three years ago.
During this public participation process with the draft budget being considered, our communities are provided again with the context and strategy followed since April 2020, immediately after the announcement of the COVID pandemic at the time -
Stringent measures were implemented during those budget processes to ensure minimal increases in tariffs for municipal services approved over the past 3 years with only 4,5% across the board for 2020/21, followed by 4% for 2021/22 and increases ranging from 4.9% for water, refuse at 5.9% and sewage service charges at 4,3% for the current financial year (2022/23).
Stringent measures were implemented during those budget processes to ensure minimal increases in tariffs for municipal services approved over the past 3 years with only 4,5% across the board for 2020/21, followed by 4% for 2021/22 and increases ranging from 4.9% for water, refuse at 5.9% and sewage service charges at 4,3% for the current financial year (2022/23).
This strategy was implemented after careful consideration of our own position, as conscious decisions to contain at least the cost of municipal services for these two budget cycles, in view of the COVID-19 hard lockdown and subsequent devastating effect on our communities, causing many businesses to close doors for months and in some instances permanently closing down, causing job losses and hardship for those who were self-employed at the time.
This approach represented the extreme caution and care exercised by the municipality to contribute in alleviating the burden on communities in containing rates- and tariff increases.
The municipality was however confronted since February 2022 with skyrocketing oil prices, which caused petrol and diesel prices to rise drastically over the past year. Before-mentioned context provides the basis for the compilation of the draft MTREF budget for 2023/24, and recommended tariffs included in this report.
The Budget Steering Committee recommended revenue projections for 2023/24 based on tariff increases for the respective basic municipal services ranging from 6,5% to 7.5%. Electricity increase is indicated as 15% (more information later on).
A new, discounted rate in the rand in comparison with current rate, will be applicable for the calculation and levying of property rates, which calculations will furthermore be based on the new property valuations in accordance with the new Valuation Roll for implementation from 1 July 2023.
These increases are now also recommended to Council in the draft MTREF Budget Report (2023/24), tabled in Council earlier today.
To be noted that the continuation of rebates is recommended for the new financial period (2023/24).
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