{"id":50718,"date":"2021-06-03T06:28:22","date_gmt":"2021-06-03T04:28:22","guid":{"rendered":"https:\/\/novanews.co.za\/kougaexpress\/council-approves-municipal-budget-for-20212022-20210602-2\/"},"modified":"2021-06-03T06:28:22","modified_gmt":"2021-06-03T04:28:22","slug":"council-approves-municipal-budget-for-20212022-20210602-2","status":"publish","type":"post","link":"https:\/\/novanews.co.za\/kougaexpress\/council-approves-municipal-budget-for-20212022-20210602-2\/","title":{"rendered":"Council approves municipal budget for 2021\/2022"},"content":{"rendered":"<p>KOUGA Municipality\u2019s budget and tariffs for the 2021\/22 financial year, starting July 1, were approved unanimously by council on Monday, May 31.<\/p>\n<p>This despite challenges such as maintaining an acceptable employee related cost ratio, curtailing electricity and water losses at acceptable levels and increased costs associated with bulk electricity purchases.<\/p>\n<p>Kouga Executive Mayor, Horatio Hendricks, said that every effort had been made to ensure that the budget was pro poor and fully funded.<\/p>\n<p>\u201cThe tabling of our budget for the new financial year comes at a time when our country once again, and in particular our municipality, finds itself in crisis,\u201d said Hendricks. <\/p>\n<p>\u201cThe COVID-19 pandemic is going into a third wave \u2013 with the country back to an adjusted alert level 2 \u2013 while we are still batting the prevailing and prolonged drought, with Day Zero predicted within the next four to five months. <\/p>\n<p>\u201cThat is if the winter rains do not come. <\/p>\n<p>\u201cThese natural disasters have the potential to cripple our financial position and compromise the municipality\u2019s ability to deliver services to the community.<\/p>\n<p>\u201cDespite these circumstances, our budged remained consistently cash-backed over a very difficult term.\u201d <\/p>\n<p>Budget<\/p>\n<p>Based on a collection rate of 93%, due to the COVID-19 lockdown, the total budget amounts to just over R1 billion \u2013 which is testament to the municipality\u2019s seriousness about taking Kouga forward and it being serviced. <\/p>\n<p>Just over R1.07 billion of the total budget is for the operating budget and R61 million is for the capital budget of the municipality.<\/p>\n<p>\u201cThe operating budget will be funded from various sources, the major contributors being service charges (55.74%), property rates (22.65%), and grants and subsidies (15.81%) \u2013 a clear indication that as Kouga we are not dependent on national grand funding to survive,\u201d said Hendricks.<\/p>\n<p>The total operating expenditure for the 2021\/22 financial year amounts to just over R1.07 billion, with the major operating expenditure items being employee-related costs at over R378 million (35,24%) and bulk electricity purchase at over R290 million (26.99%).<\/p>\n<p>Tarif increases<\/p>\n<p>To fund the operating budget, the following increases in property rates and service charges were approved, with effect from Thursday, July 1:<\/p>\n<ul>\n<li> Property rates: 5.25%<\/li>\n<li> Water: 7.1%<\/li>\n<li> Sanitation: 6.5%<\/li>\n<li> Refuse: 6.5%<\/li>\n<li>Electricity: 14.59% (in line with NERSA recommendations)<\/li>\n<li>Environmental management fee: 0%<\/li>\n<\/ul>\n<p>Hendricks said that the municipality had kept tariff increases as low as is possible. <\/p>\n<p>\u201cIn some instances, especially when it comes to electricity, this proved to be a challenge, with Eskom increasing its bulk tariff to municipalities,\u201d he said.<\/p>\n<p>Major capital projects include the upgrading of gravel roads at a cost of R14.2 million, and the upgrade of the Hankey Waste Water Treatment Works at a cost of R9.2 million.<\/p>\n<p>The Sea Vista Sports Field in St Francis Bay will, furthermore, be upgraded at a cost of R4.1 million this year, while the electrification of Ocean View will be done to the tune of R6.7 million.<\/p>\n<p>\u201cThis is a clear indication that our budget is fully pro poor,\u201d said Hendricks.<\/p>\n<p>Augmentation fees<\/p>\n<p>According to Hendricks, the overall positive news is the reduction in augmentation fees to support poorer communities and stimulate development in the region. This includes:<\/p>\n<ul>\n<li> Electrical augmentation \u2013 reduced by 30%<\/li>\n<li> Rezoning application \u2013 decreased by 23%<\/li>\n<li> Rezoning application specific to RDP and low-cost housing areas \u2013 decreased by 45%<\/li>\n<li>Departure application \u2013 decreased by 23%<\/li>\n<li>Departure use in RDP\/low-cost housing areas \u2013 reduced by 45%<\/li>\n<li> Subdivisions decreased by 23% and sub-divisions in RDP low-cost housing areas \u2013 decreased by 45%<\/li>\n<li> Consent use application \u2013 decreased by 48%<\/li>\n<li> Refuse augmentations \u2013 decrease by 10%<\/li>\n<li> Additional dwellings less than 60m\u00b2 \u2013 no charge.<\/li>\n<\/ul>\n<p>Drought mitigation<\/p>\n<p>\u201cWhile the municipality has weathered the storm remarkably well, and maintained a collection rate of 93%, we will feel the impact of the ongoing drought in the new financial year,\u201d explained Hendricks.<\/p>\n<p>\u201cTherefore, we will probably have to reallocate internal funding towards drought mitigation projects to ensure residents continue to have access to water,\u201d he added. <\/p>\n<p>\u201cBusiness plans have been submitted to national government to help us mitigate the crisis, but there is no doubt that we will have to play our part to ensure the taps in Kouga do not run dry.\u201d<\/p>\n<p>\u2013 ISSUED BY KOUGA <\/p>\n<p>MUNICIPALITY<\/p>\n","protected":false},"excerpt":{"rendered":"<p>KOUGA Municipality\u2019s budget and tariffs for the 2021\/22 financial year, starting July 1, were approved unanimously by council on Monday, May 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