Councillors don't get 10%
2005-04-21
THE municipal councillors of Drakenstein will receive an increase of 7,5% in their remuneration, and not 10,07% as reported in the Paarl Post two weeks ago.
In the report, based on the comments of local business on the Integrated Development Plan and budget of Drakenstein, the 10,07% increase related to the total amount budgeted for councillors’ salaries, which included the additional full time post for a Whip (David Xhaso).
Councillor allowances are determined by National Government and only the increase approved by Government (7,5% or less) will be implemented once it is known.
In reaction to the comments on the reduction in the salary and wage bill for staff and feared deterioration in essential services, Mayor Herman Bailey said it was part of an ongoing process to streamline the staff component, taking into account the process of amalgamation as well as issues pertaining to changes in functions, attempts to improve productivity and ultimately to achieve savings which could be utilised to address backlogs in respect of infrastructure.
“The process will be monitored in order to ensure that service delivery is not negatively affected.
“Although the amount of R23,2 million for working capital is a substantial amount, it is necessary to ensure a cash-backed budget. It should be pointed out that the current payment rate of debtors billed is about 94%.
“It is a fact that a certain percentage of our community will always find it difficult to make ends meet and therefore the municipality constantly tries to improve its systems to ensure that those who are able to pay for services, indeed do so. This will ensure that the amount budgeted for working capital, is limited.
“The norm for capital charges as applied by National Treasury amounts to 15%. Our capital charges amount to 13% which is within the norm.
“Council is very aware of the constant pressure to limit increases. We are currently in discussion with Provincial Government regarding certain functions that we perform on their behalf in order to relieve Council from these expenditures.
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