Adjustment Budget (2024 – 2025)
Items to note within the budget documents
1. Increase in Salaries and Councillor Allowances
Employee-related costs: Decreased slightly from R187,960,239 to R187,382,550 (-R577,689).
Remuneration of councillors: Increased significantly from R6,301,600 to R7,411,073 (+R1,109,473).
Overtime and standby budgets: Increased due to depletion, contributing to higher salary expenses.
2. Budget Removed from Napier (NP) and Nuwerus
Sewer Pumpstation: Security Fencing Napier budget remains at R999,995.
Sewer Pumpstation: Rehabilitation station (Old) NP increased from R780,800 to R1,580,800 (+R800,000).
Roads Infrastructure: NP Internal Roads (Engel/Joseph/Ad) removed entirely (R1,000,000 cut).
3. Spending That Should Not Be a Priority
Councillor salary increases (+R1.1m) during a financially strained period.
New chairs and furniture purchases:
Chair for Town Planning Manager: R5,000.
Chair for CFO and an employee: R15,000.
Furniture for Corporate Services Director: R50,000.
Revamp of the traffic department entrance: R250,000.
Christmas Lights Project: R500,000.
4. Lack of Spend on Infrastructure
Napier Internal Roads Budget Removed (R1 million cut).
Iris Street Pond project (Struisbaai North) cut by R1.7 million.
Bredasdorp Sewer Pump Station Refurbishment budget reduced.
Wastewater Services: Removal of Sewer Reticulation project (-R1,250,000).
Reduction in Road Upgrades for Informal Settlements (-R700,000).
Material Recovery Park Funding adjusted due to grant delays.
Reduction in Water Supply projects.
1. List of Budget Cuts
Infrastructure & Services Cuts
| Project / Item | Amount Cut (R) | Notes |
|---|---|---|
| Napier Internal Roads (Engel/Joseph/Ad streets) | R1,000,000 | Entire project removed |
| Iris Street Pond Project (Struisbaai North) | R1,700,000 | Large budget cut |
| Upgrading of Informal Roads (Ward projects) | R700,000 | Reduction in funding |
| Sewer Reticulation Replacement | R1,250,000 | Project removed |
| Zwelitsha Housing Water Supply | R100,000 | Project cancelled for this year |
| Struisbaai Sewer Overflow (Oester Ave) | R380,000 | Reduction in funding |
| Bredasdorp – Pumps in Ou Meule Rd SPS | R63,000 | Partial reduction |
| Bredasdorp – Procure Sewer Rods | R3,860 | Partial reduction |
| Refurbishment of Sewer Pump Station (Arniston) | R500,000 | Project removed |
| Fencing at Waste Facilities (Bredasdorp) | R250,000 | Reduction in security upgrades |
| Construction of Sludge Drying Beds (Bredasdorp WWTW) | R425,000 | Reduction in funding |
| Sewer Pumpstation Security Fencing (Napier) | R5 | Small reduction |
| Sewer Infrastructure Housing Sanitation (Zwelitsha) | R300,000 | Entire project removed |
| Electrification of Informal Settlements | R22,500 | Reduction in funding |
| Sidewalks – Longstreet Bredasdorp / Ou Meule | R74,000 | Partial reduction |
| Construction of Spookdraai Rd (Struisbaai – multi-year project) | R114,900 | Partial reduction |
| Roads Infrastructure: Upgrading of SBN Roads (MIG) | R19,062 | Partial reduction |
| Bulk water meters replacement – moved from roads projects | R250,000 (reallocated) | Budget transferred from road projects |
| Roads Access Boreholes, Reservoirs (All Towns) | R250,000 (reallocated) | Budget transferred to bulk water meters |
| Buildings: Stores – Electricity Store Expansion | R58,000 | Project removed |
| Smart City Project – Water Monitoring | R0 | No cuts, but no increase |
| Streetlights: Christmas Lights | R1,310 | Small reduction |
Total Budget Cut: ~R9.4 million
2. Uncollected Revenue & Revenue Shortfalls
| Revenue Category | Original Budget (R) | Adjusted Budget (R) | Revenue Lost / Not Collected (R) |
|---|---|---|---|
| Gains on Disposal of Assets (Property Sales) | 7,500,000 | 5,500,000 | R2,000,000 lost |
| Unspent Grants (National Transfers & Subsidies) | 27,266,478 | 31,308,779 | Some rollovers collected, but R10M still at risk |
| Electricity Service Charges (Eskom Loadshedding Impact) | 189,181,700 | 189,431,700 | +R250,000 (slight increase) |
| Water Service Charges | 43,943,610 | 43,943,610 | No increase (flat revenue) |
| Wastewater Service Charges | 16,223,500 | 18,223,500 | +R2,000,000 increase |
| Waste Management Service Charges | 23,874,044 | 26,374,044 | +R2,500,000 increase |
| Non-Exchange Revenue (Fines, Penalties, Forfeits) | 1,136,614 | 3,136,614 | +R2,000,000 increase |
Estimated Revenue Shortfall / Uncollected Funds
- Property Sales Not Completed: R2,000,000 lost
- At-risk Grant Rollovers: Up to R10,000,000 at risk if Treasury does not approve
- Electricity Revenue Uncertainty: While R250,000 increase was projected, the ongoing Eskom issues might impact actual collection.
Summary of Key Findings
- Total Budget Cuts: ~R9.4 million, with major reductions in Napier roads, sewer reticulation, and informal settlement infrastructure.
- Revenue Shortfalls: R2 million in lost property sales revenue, plus up to R10 million in delayed grants.
- Uncertain Revenue Collection: Electricity sales projections improved by R250,000, but this depends on Eskom’s reliability.
