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Moqhaka budget approved

The total revenue budgeted for the Moqhaka Municipality for the 2019-’20 financial year is projected at R911 million.

The budget was approved at a council meeting on Friday (28/06).

“Revenue to be generated from property rates and service charges constitutes 71% of our revenue basket,” said the executive mayor of Moqhaka, Cllr Lucky Phooka.

Phooka said this budget is investor friendly. “It invites the private sector to assist the municipality through investment in the appropriate infrastructure development in order to meet the basic needs and economic growth of our municipality,” he said.

The contribution of property rates has been set at R81 million, which represents 9% of the total operating revenue.

The projected electricity contribution is R355 million (39%), and water, sanitation and refuse removal contributions will make up the remainder of 15%, 5% and 4% respectively.

The municipality will impose average tariff increases of 9% for assessment, 13,07% for electricity and 6% for water, sewer and refuse. Other revenue of 9% included in the budget will be derived from building plans, sale of erven, connection fees and advertising fees.

Phooka noted that the national economy has shrunk by 3,2% in the last quarter, which is a clear indication of tough economic conditions.

The municipality has outstanding debts of R682 million.

“We humbly request the community to honour the payment of municipal services.

“This will play a pivotal role in the achievement of the revenue projections,” he said.

The budget however did not impress the DA.

“We rejected the whole budget based on the public protection that was done and especially the increases in tariffs,” David Nzunga of the Moqhaka DA said.

The Freedom Front Plus also opposed the budget.

“The budget for the upgrading of the infrastructure is totally insufficient to sustain Moqhaka’s deterioration and decay, and the rates increases on properties were not as required by law, or as discussed with the community on the Integrated Development Plan (IDP) meetings,” says Jèan Hattingh of the FF Plus.

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