The Executive Mayor of Mossel Bay, Alderlady Marie Ferreira, tabled a total draft budget of R904,4 million for the 2014/2015 financial year at the Council meeting on 27 March 2014. This represents an increase of 2,4% over the revised total budget of R883,5 million for the current financial year.
The total 2014/2015 budget is comprised of a capital budget of R123,2 million and an operational budget of R781,2 million. The operational budget includes departmental and non-cash transactions in the amount of R95,5 million. If this amount is subtracted the operational cash budget for 2014/2015 amounts to R685,7 million.
The Mayor announced that, with the exception of electricity tariffs, the proposed increase for services rendered by the Municipality as well as property rates is 6% across the board. The proposed electricity tariff increase is 7,39%, which is in line with the guideline increase for municipalities for the 2014/2015 financial year as approved by the National Electricity Regulator of South Africa (NERSA).
The plight of the poor has again received attention and it is proposed that the monthly subsidy for households registered as indigent or poor is increased from R381,88, plus VAT, per month to R404,79, plus VAT per month. Indigent households will continue to receive 50 kWh of free electricity per month. As in the present financial year they will also not pay for sewerage and refuse services and do not pay property rates on the first R50 000 valuation of their properties.
All households, including indigent and poor households, will continue to receive 6 kl of water and 20 kWh electricity free per month.
The total monthly income limit of a husband and wife at which pensioners will become eligible for a discount of 50% on their property rates is increased from R9 000 to R11 000 per month. The limit to qualify for a discount of 30% is increased from R12 000 to R14 000 for the 2014/2015 financial year.
Improved benefits are also proposed for pensioners as far as sewerage services are concerned. The 40% discount for the current financial year is increased to 50% and the monthly income limit to qualify for this is increased from R9 000 per month to R11 000 per month. The monthly income limit for pensioners to qualify for a discount of 30% is increased from R12 000 to R14 000.
The Municipality will again be dependent mainly on service charges to balance the operational revenue budget of R 685,7 million, after the exclusion of capital transfers and other non-cash and departmental income to the value of R 121,3 million.
Excluding departmental and other internal charges, the main contributors are the following:
– Electricity charges R 283,3 million.
– Water charges R 81,3 million.
– Sewerage charges R 34,5 million.
– Refuse removal charges R 30,6 million.
– Other R 29 million.
The main categories of expenditure from the cash budget for 2014/2015 will be the following:
– Employee-related costs of R 201,7 million, which at 29,4% of the cash budget is marginally below the national norm of 30%.
– Bulk purchases of R 223,7 million, or 32,6% of the cash budget.
– Other general expenses of R 98,1 million, or 14,3% of the budget. This category includes an amount of R 28,2 million in respect of housing top-structures, which is derived from Provincial Human Settlements Funding.
The 2014/2015 Capital Budget will be financed mainly from internal funding sources, ie the Capital Replacement Reserve, in the amount of R77,6 million, R19,8 million in Municipal Infrastructure Grants, ie MIG funding, and R13 million in Human Settlement Funding.
The major allocations in the Capital Budget are as follows:
– Streets and Stormwater R 35,4 million.
– Electricity Services R 24,4 million.
– Sewerage Services R 17,9 million.
– Water Services R 17,5 million.
– Human Settlements R 13 million.
The draft budget, together with the draft revised Integrated Development Plan that was tabled at the same meeting is now available for public inspection and comment at the municipal offices and libraries in Mossel Bay, D’Almeida, Hartenbos, Herbertsdale, Great Brak River, KwaNonqaba and Friemersheim as well as on the Municipality’s website at www.mosselbay.gov.za.
Comments or representations must be in writing and addressed to the Municipal Manager, Mossel Bay Municipality, Private Bag X29, Mossel Bay 6500. It can also be e-mailed to admin@mosselbay.co.za or faxed to (044) 606-5062. The deadline for comment and representations is 12:00 on Friday, 2 May 2014. •