Notices

Mayoral Newsletter for 1 July 2021

This past week we have experienced two contrasting perspectives in the ongoing struggle to restore our local economy from the ravages of the Covid-19 pandemic.

Last week-end saw the holding of the George MUT (Mountain Ultra Trail) where tough trail-runners participated in a 60km event in the Outeniqua Mountains. This event epitomises what we are trying to achieve through sustainable events in George – encouraging and welcoming Tourism.

On the other hand, the country has returned to lockdown 4 regulations of the Covid-19 pandemic as the third wave affects Gauteng that could spread in the Garden Route and elsewhere. Once again, apart from the need for all of us to observe safe health protocols, our economy is facing another setback through the negative impact on events, accommodation establishments, restaurants, etc.

While we deal with the pandemic, it will be useful to plan for the restoration and reinvigoration of Tourism in George and the Garden Route through the systematic re-building of our events calendar so that everyone in our tourism economy can benefit: from our airport, car hire businesses, accommodation establishments, restaurants through to all the retail operations and employees who would all share in the money being spent by tourists visiting the area.

George is the ideal location for a whole range of sporting, adventure and activity pursuits from mountain biking, to running, golf, paragliding, surfing, hiking and much more. Just as the MUT has taken place, other sporting codes are encouraged to actively explore how events can be organised that can attract participants to George.

By way of illustration, the golf and bowls clubs could organise annual events where clubs from around the country are invited to send teams to compete in events in designated weeks of the year. We need to roll-out our hospitality talents where everything that our visitors experience will result in good messages being conveyed across the country. Their visit to George should not only be about a fantastic event and accommodation or the great climate, but also special food and activity experiences. The message that each of our visitors should remember is that they enjoyed their time so much that they wish to return for the same event in the next year and bring their friends along as well. This is how we will grow tourism.

There are many and varied activities that take place around George that can be turned into events that will attract tourists to George. Increased levels of tourism should also spur growth in the various arts and crafts being practised in George.

We need to develop all tourism activities, arts and crafts. Interested parties are welcome to forward their suggestions to supporttourism@george.gov.za so that collaboration opportunities can be explored.

The importance of well-functioning municipalities has once again been placed in the spotlight over recent weeks as the practical difficulties resulting from Eskom’s loadshedding become evident.

Eskom continues to grapple with generation capacity due to the poor maintenance at many of their power stations even in circumstances where the economy is functioning at a low level. While any form of loadshedding impacts on the municipality’s own use of electricity in buildings, facilities and pump stations, it is the inability to operate sewer and water pump stations that is of most concern. Pump stations are required to regularly fill water reservoirs or to pump sewage along the network to the waste water treatment works. When two loadshedding periods regularly arise within a few hours of each other this places additional pressure to achieve these operations. While our municipality has the use of generators, we are not able to cover all of our 150 pump stations across the water and waste water networks.

The announcement last week by the President that independent power producers will be able to erect 100 MW of generating capacity without the need to obtain generating licences has opened up the market for private sector investors to invest in solar, wind or other forms of renewable energy. This additional generating capacity that can be created is to be welcomed and we look forward to any opportunities that become available for George once the precise details of the recent announcement become clear. If these investments can be fast-tracked, it is possible that there could already be relief after 2 to 3 years.

In addition to the electricity challenges, some municipalities continue to experience difficulties in the supply of water and treatment of sewage. By way of example, the City of Johannesburg is reported to face challenges within its electricity distribution network as well as with water. We have recently also noted that milk producer Clover has decided to relocate its factory operations from Lichtenburg in the North-West to Ethekwini as a result of poor service delivery. Recently the chicken producer, Astral has obtained a High Court order for the National Government to intervene in the affairs of Lekwa Municipality (Standerton) as the result of similar poor service delivery.
The above examples are illustrations of why we are placing so much focus on our infrastructure and service delivery.

We recognise the importance of maintaining and refurbishing infrastructure and increasing our water and sewer capacity. This will require substantial capital investment and astute funding of this expenditure to balance the budget with appropriate proportions of grants, debt and internally generated funding. Constant efforts are also being made to improve service standards.

Mayor’s newsletter for 3 June 2021

Flowing from the approval of the Budget and Integrated Development Plan by Council last week, it is worth noting that various initiatives are underway to promote economic opportunities within the informal and SMME sectors of the local economy.

To assist informal traders in Pacaltsdorp and Touwsranten, trade stands will be erected in the next few months along with new informal trader containers in the George CBD. In Thembalethu a strategy is being formulated for the development and release of vacant business and industrial property. This will include the exploration of various funding solutions to support the installation of the infrastructure required to make these properties ready for occupation.

With regard to street traders who have stalls in the respective allocated areas of George, unused trade shelters are being relocated to other localities where footfall is more conducive to viable trade. Potential sites in Pacaltsdorp that align with the Go George bus routes and transfer sites have already been investigated. Through collaboration, re-location will commence shortly and continue depending on prospects of expanding the identified site and funding availability.

The existing database is being updated and under-utilised stands in the CBD will be re-allocated to open up opportunities for new traders to enter the marketplace.
We should emphasise that development and growth of our local economy is of critical importance not only for the jobs that they create but also ultimately to grow the revenue of the municipality.
Through our engagements with National Treasury we are preparing proposals to secure funding under the Neighbourhood Development Partnership Grant programme that can be utilised towards the upgrade, regeneration and restoration of inequalities within disadvantaged areas. This includes opportunities for trade and employment within the immediate neighbourhoods. The programme will render funding solutions to equip existing business and industrial sites in Thembalethu and Pacaltsdorp with facilities for traders and small industries and improve access to opportunities.
If we are successful with this application, it will certainly assist in supplementing the existing limited allocation of funds available on the Capital and Operational budgets for the 2021/2022 financial year. Plans will also be reviewed to see what improvements can be made and how training and skills development can be facilitated.
Residents are reminded that more vaccines are being made available for the over 60s as from 31 May. Residents can visit the municipal libraries for assistance in registering. If you do have access to the internet, please register your over 60 family members and friends as soon as possible at: https://vaccine.enroll.health.gov.za/#/. This portal can also be found via www.westerncape.gov.za
You can also dial *134*832# and follow the prompts (FREE on all South African Networks), or WhatsApp the word REGISTER to 0600 123456.

Mayoral newsletter for 6 May 2021

With the decline in the number of Covid-19 cases in recent months, it is becoming evident that citizens appear to be more willing to move around again, to travel and participate in social activities again.

ACSA recently commented on the welcome increase in passenger movements through the George Airport. Traffic on the N2 has also increased especially over long weekends as Capetonians head east along the Garden Route. It is also noticeable around George as people gather at popular venues to engage socially or “kuier”.

Along with these activities, my colleagues have also experienced increased interest from entrepreneurs in staging events. These are important “green shoots” that are starting to emerge as we embark on the “new normal”. It is vitally important that there is re-activation of tourism activities around George because of this sector’s importance for employment. Our participation in the Bloomberg Global Mayoral Challenge (“BGMC”) centred on reinvigorating tourism with a focus on the promoting of events. The organising and staging of events will remain risky until lockdown rules are fully relaxed. It is interesting however that entrepreneurs are becoming more innovative in their organisation to minimise costs.

As part of the research for the BGMC project, we identified that the Arts and Crafts sector should play an important role as Tourism gets back on its feet. We are seeing enquiries from Arts and Crafts role-players as they search for additional avenues to market their products. This sector provides livelihoods for many people who have developed creative skills to produce anything from works of art, items of clothing and handiwork through to jewellery, woodwork and leatherwork. There are “cottage industry” opportunities for many participants. Those with the skills could teach, mentor and transfer skills to emerging learners. Ultimately the objective should be to produce quality items that could even attract the interest of the retail or collector market.

At this stage the enquiries relate to how the municipality can facilitate the development of marketing channels for this sector. We are aware of numerous events in the planning stage that could be of benefit to the broader tourism sector. We are planning to engage interested parties shortly to establish how collaboration can best succeed. We would therefore welcome thoughts in this regard that can be sent to: supportbusiness@george.gov.za

As we think of tourism and the arts and crafts sectors we naturally need to connect the dots between the need for people to socially engage and travel and the activities and attractions that we can and do offer in the George area. For George to be successful, we need our citizens to be employed and participants in the economy. This is after all our ultimate objective.

KENNISGEWING: FIN015/2021
2020/21 FINANSIëLE JAAR: AANSUIWERINGSBEGROTING 22 APRIL 2021
Kennis geskied hiermee ingevolge Artikel 28 (2) van die Wet op Plaaslike Regering: Munisipale Finansiële Bestuur, 2003 (Wet no.56 van 2003) en Artikel 23 van die Munisipale Begrotings en Verslagdoening Regulasies 2008 onderskeidelik, dat die Aansuiweringsbegroting goedgekeur is tydens die Raadsvergadering van 22 April 2021.
Ingevolge Artikel 21A van die Munisipale Stelsels Wet, 2000 (Wet no. 32 van 2000), gee George Munisipaliteit hiermee kennis aan die plaaslike gemeenskap dat die raadsbeluit, en alle ander tersaaklike dokumentasie, beskikbaar is op die webwerf van die Munisipaliteit: www.george.gov.za
Navrae in hierdie verband kan gerig word aan die Direkteur: Finansiele Dienste by tel 044 801 9035
DR M GRATZ
WAARNEMENDE MUNISIPALE BESTUURDER
_________________________________________________________________________
NOTICE: FIN015/2021
2020/21 FINANCIAL YEAR: ADJUSTMENT BUDGET 22 APRIL 2021
Notice is hereby given in terms of Section 28 (2) of the Local Government: Municipal Finance Management Act, 2003 (Act no.56 of 2003) and Section 23 of the Municipal Budgets and Reporting Regulations 2008 respectively, that the Adjustment Budget was approved during the Council meeting held on 22 April 2021.
In terms of Section 21A of the Municipal Systems Act, 2000 (Act No. 32 of 2000), George Municipality hereby notifies the local community that the Council Resolution, and all other relevant documentation will be available on the website of the Municipality: www.george.gov.za
Enquiries may be directed to the Director: Financial Services at 044 801 9035
DR M GRATZ
ACTINGMUNICIPAL MANAGER

Mayor’s Newsletter: Written 19 April 2021

On 31 March 2021, the Municipality’s draft budget for 2021/22 to 2023/24 was tabled in Council. In an earlier newsletter, I commented on the structuring of electricity tariffs as they form an integral part of municipal budgets.

Over the past decade, high electricity tariff increases have dominated the basket of services provided by municipalities to the extent of limiting realistic tariff increases required for water, sewerage, refuse and property rates to make overall increases to residential and business customers affordable.

Municipalities are “price-takers” for increases granted to Eskom by Nersa for the bulk electricity purchases as well as nationally negotiated salary increases for municipal employees. These two expense categories comprise 50% (R1249m) of our Operational Expenditure budget of R2496m. Contracted services which include the operational expenditure on Housing projects and GIPTN amount to R599m (24%). The remaining expenditure of R648m covers all the other categories.
For the Operational Budget to balance, Revenue needs to exceed the Expenditure. The increases for Employee Related Costs and

Bulk Purchases, therefore, result in other tariffs being much lower to ensure that affordable tariffs are levied to our customers.

Core Services Revenue is budgeted at R1619m (or 62%) out of Total Revenue of R2628m with Grants Received amounting to R707m (27%). The balance comprises Sundry Revenue of R302m (11%) which includes bus fares of R86m. Electricity contributes R875m or 54% of our Core Services Revenue.

In summary, the administered prices have squeezed the flexibility in levying above inflation tariffs on other services that would realistically provide for sufficient funding for the refurbishment of water, sewerage, roads and storm water infrastructure. The poor management at Eskom has therefore resulted in pressures on municipalities who should have been spending more to maintain and upgrade infrastructure that has served us for the past 40-50 years. In the coming years, the next challenge will be to increase expenditure on maintenance and refurbishment.

We have already embarked on a programme of improving productivity in spending less in certain areas to make more money available for upgrades in infrastructure.

As active citizens we all need to be mindful of our environmental footprint to assist in ensuring that our spending is productive. The Clean George campaign that has recently been launched is targeted to spend approximately R1 000 000 per month employing temporary workers to clean up litter, get streets and verges clean, etc. While providing necessary employment in austere times, these funds could be spent more productively to provide greater value to our communities, e.g. facilitating economic activity. By using the available refuse collection channels and stopping littering, our citizens could therefore help in improving the services of the municipality.
We all need to work together.

Die konsep begroting vir die 2021/22 finansiële jaar is verlede week ter tafel gelê en het die nuwe tariewe vir elektrisiteit ingesluit. Ek verduidelik hieronder hoe hierdie tariewe bepaal word.

Nersa (“National Energy Regulator of South Africa”) bepaal die verhoging van elektrisiteitspryse wat Eskom aan verbruikers mag deurgee. Die prys waarteen elektrisiteit aan Munisipaliteite (“Muns”) verkoop styg met 17,8%. ‘n Formule word deur Nersa gebruik om die prysstyging wat Muns aan verbruikers kan deurgee, te bepaal. Bedrae vir onderhoud, salarisse en die netto toelaatbare marges op elektrisiteit word in hierdie jaar se verkoopsprys-styging van 14,59% ingereken.

Eskom verskaf dus elektrisiteit aan Muns teen die grootmaat-prys. Muns is dan verantwoordelik om hul eie verspreidingsnetwerk en substasies in stand te hou om hulle huishoudelike- en besigheids- verbruikers van krag te verskaf. Die kostes om elektrisiteit te versprei sluit onder andere die volgende in: onderhoud op kraglyne, transformators, substasies, onderhoudspanne, waardevermindering op toerusting, asook die interne gebruik van krag (vir pompstasies, straatligte, geboue) en behels ongeveer 30% van die totale aankope.

Daar is verskillende tariewe waarteen Eskom krag aan Muns verkoop afhangende van “piek” of “nie-piek” tye vir “winter” en “somer”. Die totale bedrag vir aankope vir die jaar is dus die kilowatt-ure teen die verskillende tariewe. Die Muns moet gevolglik daagliks statistiek hou van hulle aankope en verkope teenoor die verskillende tariewe en wie die verbruikers is.
Om die verkoopspryse te bepaal moet elke Mun die verbruikspatroon ontleed. Nywerhede word teen “time of use” tariewe gehef; “piek”-tariewe is dus baie duurder as ander tye. Die tarief vir verkope aan huishoudings word teen ‘n gemiddelde prys vir die jaar bepaal wat laer is as die hoë “winter-piek” pryse (maw die Mun verkoop teen ‘n verlies) maar wat ook die laer “somer”- en “nie-piek” tye in ag neem.

Ons Mun gebruik tans (2020/21) nog ‘n eenmalige tarief van 206,4 sent per kilowatt-uur sonder BTW (237,3 sent BTW ingesluit) vir alle verkope aan huishoudelike verbruikers (deernis-gevalle betaal minder vir ‘n getal eenhede). Sommige van ons naburige Muns het alreeds ‘n basiese beskikbaarheids-heffing begin toepas waar huishoudings ‘n bedrag van byvoorbeeld R50 (of R100) per maand betaal voordat hulle kilowatt-uur eenhede aankoop. Die aanvanklike blok eenhede wat aangekoop word sal dan goedkoper wees as die eenmalige tarief wat George hef maar daarna styg die tarief soos addisionele blokke aangekoop word. Hierdie stelsel word ook die “inclining block tariff” stelsel genoem. George moet nog die besluit neem of die laasgenoemde stelsel in die toekoms ingestel gaan word.

Die verkope van elektrisitiet vir 2021/22 word op R875m beraam (teenoor aankope van R616m) wat 54% van George se inkomste uit kerndienste en belasting verteenwoordig. Hierdie inkomstebron is dus uiters belangrik vir ons hele samelewing.

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The draft budget for the 2021/22 financial year was tabled last week and included the new tariffs for electricity. The Executive Mayor Leon Van Wyk, explains below how these rates are determined.

Nersa (National Energy Regulator of South Africa) stipulates the increase in electricity prices that Eskom may pass on to consumers. The price at which electricity is sold to Municipalities (“Muns”) increases by 17.8%. A formula is used by Nersa to determine the price increase that Muns can pass on to consumers. Amounts for maintenance, salaries and the net allowable margins on electricity are included in this year’s sales price increase of 14.59%.

Eskom therefore supplies electricity to Muns at the bulk price. Muns is then responsible for maintaining their own distribution network and substations to power their domestic and business consumers. The costs of distributing electricity include the following: maintenance on power lines, transformers, substations, maintenance teams, depreciation on equipment, as well as the internal use of power (for pump stations, street lights, buildings) and comprises approximately 30% of total purchases .

There are different rates at which Eskom sells power to Muns depending on “peak” or “non-peak” times for “winter” and “summer”. The total amount for purchases for the year is therefore the kilowatt hours at the different rates. The Muns must therefore keep daily statistics of their purchases and sales against the different tariffs and who the consumers are.

To determine the selling prices, each Mun must analyse the consumption pattern. Industries are charged at time of use rates; “Peak” rates are therefore much more expensive than other times. The tariff for sales to households is determined at an average price for the year which is lower than the high “winter-peak” prices (ie the Mun sells at a loss) but which also includes the lower “summer” – and “not peak ”times.

Our Mun currently uses (2020/21) another one-off rate of 206.4 cents per kilowatt hour without VAT (237.3 cents VAT included) for all sales to domestic consumers (indigent consumers pay less for a number of units). Some of our neighbouring Muns have already started applying a basic availability levy where households pay an amount of, for example, R50 (or R100) per month before purchasing kilowatt-hour units. The initial block of units purchased will then be cheaper than the one-time rate charged by George but thereafter the rate will increase as additional blocks are purchased. This system is also called the “inclining block tariff” system. George has yet to decide whether the latter system will be introduced in the future.

Sales of electricity for 2021/22 are estimated at R875m (compared to purchases of R616m) which represents 54% of George’s revenue from core services and taxes. This source of income is therefore extremely important for our entire society.