Residents of the Mogale City Local Municipality (Krugersdorp, Magaliesburg, Muldersdrift) are herewith forewarned that the level of service delivery by the Municipality will continue to decline drastically over the course of the next few years.
The reason for the Municipality’s bleak prospects is that the number of residents paying for services keeps decreasing.
In the 2022-23 financial year, the council’s collection rate for services was 88%, while the target was 91%.
In the first quarter of the current financial year, Mogale City’s collection rate for services dropped to a mere 75%.
According to the council, the drop in the revenue collection rate for services is largely due to the unfavourable economic conditions in the country, as well as rising interest rates and the inflation rate.
The council is encouraging residents to apply to be registered as indigent.
Such short-sightedness will, however, result in even fewer residents paying for services.
It is also important to note that the construction of the Brickvale housing scheme in Tarlton is expected to be an immense financial burden on Mogale City’s finances, which will further impede proper service delivery to paying residents.
During an oversight visit to Brickvale, it came to light that no water meters have been installed at any of the residential units.
In addition, none of the residents have received municipal bills so far. This is alarming seeing as some of the residential units were handed over to residents last year already.
The latest figures indicate that 275 of the units are already occupied, while no services are being paid for.
At the end of the day, the Brickvale scheme will consist of approximately 6 000 units, which will make it 20% larger than Munsieville.
Mogale City simply cannot afford to provide free services to more and more residents, while the financial burden on loyal taxpayers keeps growing.
The table below offers an overview of the collection rates of the various areas in Mogale City (the amounts are expressed in rand):
|Area||Services used||Amount paid||Difference||Collection rate|
Since the municipal elections two years ago in 2021, the FF Plus has used every opportunity it had to insist that the council should intensify its credit-control measures, but the party’s pleas have fallen on deaf ears.
During today’s council meeting (31 October 2023), the FF Plus once again raised the matter, but once again, its requests were ignored.
The current situation is unsustainable and will undoubtedly lead to a further decline in service delivery because there is simply not enough money.