Pro-poor Bitou budget gets the nod

PLETTENBERG BAY NEWS - There is some good news for Bitou residents buckling under financial pressure as Council approved "pro-poor" budget policies.

During a special council meeting on 7 June, Council approved a rebate structure for service charges for low-income households earning less than R14 743 per month.

This did however not come easy. Bitou coalition caucus leader Bill Nel said during the five weeks leading up to the tabling of the budget, the opposition put the DA/AUF/PDC coalition under intense pressure, including bringing a motion of no confidence in the mayor and deputy mayor. The motion failed.

"This is a concept that I, as the Ward 2 councillor since 2018, have presented to two previous chief financial officers and two previous municipal managers," said Mayor Dave Swart.

"In desperation to get a rebate structure for basic service charges considered by the previous ruling party I even shared it publicly on my Facebook page in 2019. All to no avail - until now."

He said that, with a coalition team that recognises the need to make Bitou service charges more affordable to low-income households, the concept was presented earlier this year and accepted in principle by the then CFO and municipal manager. This has now resulted in the increase in the indigent qualifying household income from R3 500 per month to R5 200 per month.

This means more households will now qualify for 6Kl per month free water with no basic service charge; 50 units free electricity per month with no basic service charge; free refuse removal; free sewerage, and no property rates up to a maximum municipal valuation of R350 000.

Swart further said the funding for these subsidies will come from the National Treasury's equitable share granted to municipalities.

In addition to increasing the indigent income level, low-income households will now be assisted with rebates on basic service charges.

Category A: R5 201 – R6 710: 40% rebate.
Category B: R6 711 – R8 723: 30% rebate.
Category C: R8 724 – R11 340: 20% rebate.
Category D: R11 341 – R14 743: 10% rebate.

"In addition to these rebates, to assist households who have not been able to pay their outstanding municipal service accounts, a once-off amnesty for consumer debt has been approved for debt older than 90 days as at 31 March 2022."

Any consumers who are prepared to pay a once-off 50% of this outstanding debt will have the remaining 50% written off.

Those who cannot settle 50% of their outstanding debt as a once-off payment, will be able to arrange to pay off the outstanding debt over six months at a 30% discount on their overdue amount.

"I urge all households to pay their monthly services accounts. This is important for Bitou Municipality to ensure ongoing service delivery, as the income from these service charges is essential if the municipality is to continue providing adequate basic services to all communities in Bitou."

Bitou Mayor Dave Swart