MIDDELBURG – The Steve Tshwete municipality is concerned about the growing issue of delinquency in settling municipal service fees, which is disrupting the seamless provision of essential services.
Mayor Mhlonishwa Masilela raised this concern during his State of the Municipality Address at the Sydney Choma Banquet Hall on Friday, August 30, 2024.
Masilela highlighted that while the municipality’s collection rate exceeds 90%, there is still a portion of the population failing to meet their financial obligations for municipal services. “Their persistent neglect in settling their dues has a detrimental impact on the day-to-day operations of the municipality,” he emphasised.
He urged those facing financial difficulties to consult with their ward councillors, PR councillors, and officials to assess their eligibility for inclusion in the municipality’s indigent database. “Adhering to our indigent policy, this will enable the municipality to extend appropriate assistance for their municipal service payments,” the mayor explained.
In July 2024, the municipality received numerous applications from community members seeking inclusion in the indigent database, following the removal of ineligible residents from the register in the previous fiscal year. “We remain open to receiving applications from those rightfully deserving of indigent status,” he added.
Masilela also presented a “balanced and adequately funded” budget for the 2024/25 financial year. The municipality is set to allocate R2.8 billion, with approximately R217 million designated for capital projects and R2.6 billion for operational expenses.
The capital budget includes R19 million for road and stormwater projects, R31.7 million for electricity initiatives, and R96.5 million for water infrastructure. Waste management is allocated R23.8 million, while community assets, sports, recreation, finance, and administration receive R11 million, R7 million, and R6.9 million respectively.
Additionally, Masilela announced tariff adjustments: a 4.9% increase for sewerage, 12.71% for electricity, 4.9% for refuse removal, no change in property rates, and a 4.9% rise in water tariffs. “It is noteworthy that despite our challenging financial circumstances this fiscal year, our tariffs have remained stable,” the mayor stated. “An exception lies in the electricity tariff, which is subject to NERSA regulations.” He reiterated that to sustain quality services, the municipality must cover the costs associated with service provision. “In light of this, adjustments in tariffs are necessary to ensure adequate revenue generation to support our operations.”
