- Council chairperson calls for new strategies
Kgatleng District Council Chairperson Daniel Molokwe says the council has experienced an under-collection of revenue for the financial year 2022/23.
The total collection of revenue as of 31st May 2022 is P663, 155 against the targeted estimate collection of P1, 521, 270 leading to an under-collection of P858, 114.
He said the under collections are due to non-collection in some votes like Advertising signs, interest on investment, sale of sundry items, and Matimela fund among others.
He told a full council meeting this week that no collections were made under interest on Investment as preparations for investing are underway. He said interest rates had been collected from financial institutions and an evaluation will be conducted by end of June 2022. “Sale of sundry items
will be conducted in second and third quarter respectively. As for the sale of the Matimela fund, the collection of Matimela has been temporarily suspended as Council is not in a position to look after Matimela animals.
“Under collection was also realised in numerous votes such as Plant hire, staff housing, and market stall rentals. The council needs to intensify collection strategies and also come up with new strategies for collection.
“One of Council’s strategies to raise its own income was the review of user charges and tariffs/fees,” he said, adding that the reviewed charges were put in use from the 1st of April 2022.
This, he said was applicable to Street Vendors and Hawkers Trading Certificates fees, where a fee of P50 was charged for issuance of new certificates and also on renewal of the same.
According to Molokwe, Kgatleng District Council did not charge the street vendors and Hawkers for the past 10 years while other Councils had long begun their charges as per the adopted National Model for the Street Vendors and Hawkers trading certificates.
He told councilors that since the implementation of this initiative, Council has generated a total sum of P11, 850 for 109 Hawkers and 128 Street Vendors certificates.
Molokwe explained that the actual expenditure as of 31st May is P27, 190, 772.12 while the estimated and projected expenditure for the second period (May) is P26, 139, 476, which implies an over-expenditure of P1, 051, 296.
He stated that the Revenue Support Grant (RSG) ceiling for the 2022/23 financial year has been finalised and Kgatleng District Council has been allocated P147, 712, 236. He said this implies a decrease of P2, 132, 878.00 from last year’s RSG. He pointed out that from the same RSG ceiling, Council is expected to cater for COVID-19 preventative measures at primary schools at a total sum of P4, 296, 924 and Insurance at a total sum P871, 666.
“We have been obliged to cut some activities and inadequately budget for some votes in order to adhere to the set RSG ceiling of P147, 712, 236.
“The total budget for Council for the financial year under review is P156, 839, 856 where our own source of revenue component is P9, 127, 620," the council chairperson said.