The new municipal budget for 2022/’23 has recently been tabled and approved and residents can expect a cost increase in the basic services.
In her bugdet speech executive mayor of the Stellenbosch Municipality, Gesie van Deventer said the past two years of Covid-19 lockdowns has had a significant impact on their budget, and this impact cannot be understated. Numerous projects had to be paused to accommodate the impact of this and also to make money available for Covid-19 control measures.
“We have to work smarter and more innovative with our budget, but we also have to be realistic about the money available. It is definitely not business as usual,”she added.
The anticipated overall revenue budget increase was limited to 6.62% resulting in annual operating revenue increasing from R2 116 590 768 in 2021/’22 to R2 256 812 246 in 2022/’23. This, according to Van Deventer, reflects the inflation expected over the financial year and does not constitute a real increase or profit margin.
In the 2022/’23 financial year, the Property Rates Tariff paid by owners will increase with 6.20%, whilst total rates also increased with 6.20%.
The proposed electricity tariff of 7.90% is lower than the increase in electricity bulk purchases for the 2022/’23 financial year of 8.61% as approved by NERSA (National Electricity Regulator of South Africa) for implementation by all Municipalities.
Although the proposed tariffs increase with only 7.90%, the Municipality is experiencing a decrease in electricity demand as consumers are utilising alternative energy sources.
“Taking cognizance of the challenges that the Province is facing as a water scares Province, and an anticipated dry winter associated with climate change, the plight of the poor and the affordability of basic services, the average tariff increase for the rest of the consumptive water scales is 6.20%,” Van Deventer said.
The proposed increase tariff for sewerage (sanitation) is 6.50%.
“Refuse removal services, like sanitation are also classified as an economical service.
“This means that the service charges for refuse must cover the cost of providing the service, it must at least break even.”
Van Deventer said the Municipality will implement an above inflation tariff increase as this service does not break even and to provide for the additional expenditure for the transport of the waste from the Stellenbosch Landfill Site.
“The solid waste tariffs were modelled to give effect to the principle of the service charge being cost reflective as the service cannot be cross-subsidised. It is proposed that the tariff increases by 8.00% as a result of the before mentioned. It is however lower than last year’s increase, which was 12%.”
The budget sees an increase in annual operating expenditure from R1 977 679 012 in 2021/’22 to R2 102 064 809 in 2022/’23.
“This 6.29% increase is primarily due to increases in several expenditure categories
The capital budget increases from R403 507 636 in 2021/’22 to R409 273 204 in 2022/’23.
The budget allocated for water across the municipality for the next three years is R181 709 470 with the sanitation budgeted at R110 500 000.
The following has been budgeted for housing projects over the next 3 years to create more housing opportunities:. Housing projects, Langrug, R4 000 000.. Cloetesville (380) FLISP, Cloetesville Ward 17, R1 100 000. Cloetesville Infill (738) FLISP, Cloetesville Ward 16 & 17, R850 000. Erf 64, Kylemore, R6 225 000. Erf 7001 and other possible sites for mix-used development in Cloetesville Ward 17, R1 050 000. Erven 81/2 and 82/9, Stellenbosch Kayamandi, R875 000. Jamestown housing, Jamestown R13 928 000. Kayamandi town centre, R15 000 000. Kayamandi Watergang Northern Extension (2000), Kayamandi R5 700 000. Klapmuts La Rochelle (100), La Rochelle Informal Settlements, R433 000. La Motte Old Forest Station (±430 services & ±430 units), La Motte, R1 250 000. Lapland Precinct Tenantville, R1 000 000. Stellenbosch Adam Tas Transit Oriented Development (3500), R3 500 000
Creating opportunities for especially the youth through sport and recreation is very important according to Van Deventer for that reason mor ethan R13 000 000 was allocated to upgrade sports facilities.
Indigent households in 2022/’23 will receive: 100 units of free electricity per month; 6 kilolitres of free water per month, free refuse removal services, free sanitation services.
“This indigent subsidy will be credited to the customer’s account during the monthly billing run. The indigent subsidy is funded through our equitable share allocation.
“For the 2022/’23 financial year the qualifying criteria for indigent status is households (main bread winner/s) earning less than R6 500 per month as indicated by the Municipality’s amended Indigent Policy.
“The Municipality also succeeded in accessing the EPWP Incentive Grant for Municipalities in a bid to give some relief to the poorest of the poor by means of contract employment opportunities over the short term. The allocation for the 2022/’23 financial year is R4 928 000.”
