16 Feb 2020

Selebi Phikwe Town Council 2019/2020 financial year end deficit has been attributed mainly to under collection on the council’s own sources of income.

Delivering the recurrent budget proposal for the 2020/2021 financial year during a full council session recently, the council’s finance committee chairperson, Mr Oageng Makgosa explained that although the council was within target, a deficit budget was anticipated at the end of the financial year, partly due to increment of members’ salaries and allowances such as Ward Development

Committees allowances, which effected in April and October 2019.

He explained that the approved budget for 2019/2020 was P135 937 400 with a current expenditure of P112 961 005,  noting that the council collected P11 219 508 of the P14 500 990 of total revenue budgeted for.

Mr Makgosa said the council total budget amounted to P136 006 330 against the submitted budget requirements of P166 118 520.

He explained that the budget proposal stood at P146 840 490 to be financed by an overall estimated revenue support grant of P132 006 330, which constituted 90 per cent of the total estimated income while the council’s own source of revenue represented only 10 per cent.

He explained that the original budget could not be met due to financial constraints.

Mr Makgosa said it was evident from the budget that not all activities would be possible.

Taking the council through an analysis of the council’s own income sources, Mr Makgosa said abattoir fees income increased by more than 100 per cent, from P328 050 to P694 000 as a result of the new fees introduced by the council April last year.

He said tender fees income increase of 26 per cent was due to anticipated procurement on work, supplies and services to be undertaken in year 2019/2020 as a result of Economic Stimulus Programme, constituency projects, destitute housing projects and other special funds.

He explained that the budget for school fees for 2019/2020 increased by 33 per cent as the council anticipated an increase in the number of foreign students as investors set businesses in Selebi Phikwe, noting that government had shown commitment in resuscitating the town’s economy.

Mr Makgosa said the service levy income was still the same as the number of plot holders paying service levy had not changed and also that the council anticipated no change in the stadium fees vote.

Furthermore, he said there was no increase anticipated for the staff housing fees income as the council was still undertaking renovations, adding that some council houses were in ruins.

Selebi Phikwe mayor, Mr Lucas Modimana said the council needed to broaden its revenue income and intensify revenue collection.

He challenged councillors to mobilise the constituents to pay their rates since the town’s existence depended on it. ENDS