MAKHADO (LOUIS TRICHARDT) – Local taxpayers can expect less of a budget shock this year. This is in stark contrast to last year's 11% increase on rates and taxes and 9% increase on electricity.

Last years dramatic increase was almost double that of the 2001/2 financial year. Furthermore, the percentage increase in growth of the total Operating Budget of 24,66% was far higher than the 9% guideline determined by the national Department of Finance. The 2003/4 Operating Budget amounted to a record R186 766 320.

What the 2004/5 Operating Budget will total is still a confidential matter at this stage. Council was to take a decision on the draft estimates for the 2004/5 financial year on Monday during a special meeting, but Council opted to hold the matter in abeyance. Also on Council's agenda on Monday was the approval of the Integrated Development Planning Documents. The approval of these documents is essential as it directly determines Council's capital budget. This item on the agenda was also held in abeyance.

It was explained that the reason for holding the two items in abeyance was to allow for further discussions on the matter on May 20. It is said that, among the problems still to be sorted out, is the issue surrounding a huge amount of surplus funds from the supply of water. This amount must be paid to the Vhembe District Municipality who recently became responsible for the service.

Time, however, is running out fast for Council to finalize their estimates for the 2004/5 financial year. The final estimates must be sent to the office of the Minister of Finance before the end of May. Although officials remain tight-lipped as to the specifics of the estimates, initial indications are that local taxpayers can expect a 7% increase on basic services in accordance with government's guidelines and a 3,5% increase on electricity in accordance with the National Electricity Regulator's guidelines.