SPTC hamstrung by budgetary constraints
Tapela Morapedi | Wednesday March 29, 2017 14:51
The council’s finance committee chairman, Molosiwa Molosiwa told a special full council meeting that the bulk of the current financial year’s recurrent budget would be consumed by personal emoluments hence no major projects are anticipated in the town.
SPTC’s total budget is P130 million that is financed by revenue support grant of P116 million and income from own source of P14 million.
In the past financial year, the council recorded a 32% decline in interest on investments, development that Molosiwa said calls for the council to come up with new sources of revenue.
Molosiwa said it is evident that funds will not be able to carryout all activities as expected hence close monitoring and adherence to the budget need to be emphasised to avoid cost overruns.
He said as a result, all projects should be implemented on time and within budget.
“All activities that the council can do without should be put on halt and cost saving measures in votes such as overtime and utilities should be put in use. There should also be close monitoring on utilisation on such,” he said.
The council registered a nine percent decrease in civic centre fees as one of the community centres has been converted into a home economics training centre and therefore, will not be used for civic bookings.
The lease rental budget has also gone down as some of the lease agreements have not been renewed or cancelled such as that of Barclays Bank in Botshabelo.
However, the council anticipates a slight revenue growth of seven percent in park usage as the park remains one of the most visited leisure centres. By-law fines have also experienced an 11% increase from the previous year’s collection. There has been no change on the insurance commission.
There has also been an increase of 23% on market fees as the lease for factory shells and market stalls has been revised.
Councillors felt that the stadium, which has generated a lot of profit, should be rehabilitated to maximise its use to generate more money.
They said facilities like the abattoir that services neighbouring villages as well must always be fully operational.