Are mokopane ratepayers overcharged?

Charmaine Lourens (charmaine@noordnuus.co.za)
While the Mogalakwena municipality can boast that it is one of only a few municipalities in South
Africa that is still solvent, community leaders feel the municipality is unnecessarily placing
Mokopane’s residents under financial pressure.
The Mokopane Business Chamber says that the municipality has realised a R94-million surplus last year which it did not bring into account in its income budget for the 2013/14 financial year.
“The municipality is supposed to use the surplus money as a starting point for the new budget,” said Piet de Bruyn, Chartered Accountant and member of the Mokopane Business Chamber. He notes that this requirement is stipulated in the Municipal Finance Management Act.
“Why are surpluses not used as a source to lessen tariff increases?” he asked. “The municipality exceeds its budgeted figures every year. There is a definite pattern of over budgeting in the Mogalakwena Municipality. The paying consumers of this municipality are footing the bill for this and based on the Fourth IDP Representative Meeting, will be coughing up for overbudgeting again in the year to come.”
In a letter addressed to the Municipal
Manager, William Kekana, it was said the increase from
property rates is 17.96%. This is a clear indication that the property rates are too high. “We cannot accept that our tariffs for water are the highest in Limpopo. The number of paying consumers within the municipal area cannot afford to subsidise all the indigents in our municipality,” de Bruyn lamented
He said the Chamber has written letters dated from 31 October 2012 and a follow-up letter on
14 February 2013 regar-ding the proposed tariffs based on the 2013/2014 IPD
Review Meeting. “Sadly none of our objections were taken into consideration, and it can only be assumed that meetings were held as fronts of obeying the legislative procedure without taking comments into account in any way. We are still awaiting the follow-up meeting as promised at the Review meeting.”
In its response the municipality addressed various issues that were clearly communicated to it directly by the Business Chamber, but was never shared with the Northern News. In addressing these issues, the
municipality says there will be a R105-million [deficit] in 2013/14 and this money will be used as follows: Eskom upgrade - R5-million, servicing Ext 13 - R9-
million, refurbishing maturation ponds - R15-million, 2 x 5 ML sewer plants - R56-million, new office extensions - R10-million, water meters  for ext 19 - R6-million and phola park water meters - R3-million.
The remainder has not been committed but will be available for some unforeseen or emergency projects.
The municipality concluded saying it does not
believe tariff increases are unreasonable.
“National Treasury is the overseer of all municipal tariffs. Tariffs will only be adjusted if National
Treasury is of the opinion that tariffs are unbearable and
unrealistic.”