During an ordinary council meeting on March 30, Kouga executive mayor, Horatio Hendricks, tabled the draft budget for the 2023/2024 financial year, which focused on enhancing the municipality’s revenue base to sufficiently cover costs incurred during the specific financial year, and keep increases affordable for all residents.
The draft budget highlighted four focus points, which will firstly see all residential properties valued at R400 000 and less not being required to pay property tax – which was previously R100 000, while the norm is just R85 000.
Secondly, the pensioners’ rebate will double, from R100 000 to R200 000, including the impermissible rate of R15 000.
The third focus point included a 23.8 percent reduction in the rates tariff on properties whose value has not increased more than 30 percent, and lastly, the municipality’s subsidy budget is R68 492 819, which equates to approximately R1 367 per indigent household per month.
To provide more detail, Hendricks said that the total operating revenue has increased 10.58 percent for the 2023/2024 financial year, compared to the 2022/2023 approved adjustment budget.
He said that the total operating expenditure for the new financial year increased by 10.44 percent, amounting to R1 301 060 billion.
Hendricks said that the bulk of the operating budget would go towards contracted services, including road maintenance (R10 million), vehicle maintenance (R8.9 million), sewer infrastructure maintenance (R7.2 million), maintenance of buildings and facilities (R6.1 million), and the consultancy fee for the renewable energy plant (R4.8 million).
“Funding for the operating budget will be obtained from various sources, of which the major contributors are service charges such as electricity, water, sanitation, environmental management fees, refuse collection, property rates and grants and subsidies received from national and provincial government,” said Hendricks.
“Once again, 16 percent of our total revenue budget comes from government grants and 84 percent is our own revenue.”
Hendricks said that tariff increases have been kept as low as possible, while still being cost-reflective, as is legally required.
He further said that the municipality has proposed a 23.8 percent reduction in the rates tariff for the new financial year, starting in July.
“If this reduction is approved it will mean that any property increasing in value by 30 percent or less, will experience a rates reduction. Property rates for residential houses will increase for properties whose value has increased by more than 30 percent,” said Hendricks.
He said the basic levy for water will increase with 7,2 percent, while the tariff for water consumption remains the same as the current financial year, should consumption be less than 9kl per household per month.
Hendricks said escalating punitive measures will be implemented for households using above 9kl per month, to curb high water users.
To curb high water usage, he said that the municipality aims to install smart water meters at all new buildings, which will enhance water saving measures, as well as identify water leaks.
Hendricks said that the tariff for sanitation and refuse will increase with 6.5 percent, while the tariff for environmental management will increase with 7 percent.
In addition, he said the tariff increase for electricity has been set for 15 percent.
“We have subsequently been informed that Eskom will increase their bulk tariff to municipalities with close to 19 percent, which might have an impact on our increase, as the tariff increase depends on the awarded increased percentage by NERSA to Eskom,” said Hendricks.
He further said that the total capital budget for 2023/2024 has doubled to R66 593 million, with at least six major projects expected in the Kouga region.
These projects include Mimosa Street Pipeline Replacement (R16 314 317), upgrading of the Sewerage Infrastructure in Hankey (R12 808 470), upgrading of KwaNomzamo Wastewater Treatment Works (R10 632 672), Paradise Beach Water Tower (R9 772 639), Ocean View 1 250 electrification (R4 086 956) and Energy Efficiency Projects (R3 478 260).
“I wish to thank our residents for their tenacity and trust. It is through this working social contract which contributes to our successfully high collection rate that allows us to have the lowest dependency on grant funding in the province at just 16 percent. This is an achievement that we should all be proud of and further speaks to our direction toward self-sufficiency,” said Hendricks.
– ISSUED BY KOUGA MUNICIPALITY
