Dear Members,
The 2023/24 draft budget is on the Bitou website and attached below if you would like to look at it.
The revenue increase of 11.6% to R899 million, is concerning and possibly overstated, given the collection rate, and potential decline in electricity revenue due to so many people supplementing their usage with solar. The increase in revenue appears solely based on rates and user tariff increases with little impact from any revenue enhancement plans.
Planned expenditure is in line with the higher revenue with a small surplus forecast. We see no cost reductions nor planned efficiencies to offset these large tariff increases. Tariffs appear to be set on the basis of an inefficient cost base .
The two biggest categories of expenditure are salary related and bulk purchases, and we need to know more about what they comprise.
Proposed tariff increases are as follows;
Waste removal – 17.2%
Property rates – 7.2%
Water – 6.8% with rumours of punitive charges
Sewerage – 6.8%
Electricity – (NERSA +-18%)
A public participation for Ward 2 on the budget and IDP are scheduled at Piesang Valley Hall on Tuesday, 18 April at 5:30. We have submitted a list of questions to the mayor for him to respond to at the meeting. We hope you can join us.
Kind regards,
Steve Pattinson
