{"id":55129,"date":"2019-06-06T06:01:42","date_gmt":"2019-06-06T04:01:42","guid":{"rendered":"https:\/\/novanews.co.za\/kougaexpress\/council-approves-new-budget-tariffs-20190605-2\/"},"modified":"2025-03-21T10:34:05","modified_gmt":"2025-03-21T08:34:05","slug":"council-approves-new-budget-tariffs-20190605-2","status":"publish","type":"post","link":"https:\/\/novanews.co.za\/kougaexpress\/council-approves-new-budget-tariffs-20190605-2\/","title":{"rendered":"Council approves new budget, tariffs"},"content":{"rendered":"\n<p>DESPITE fierce expostulation from the opposition, the Kouga Council approved the municipality\u2019s operating and capital budgets for the new financial year, starting onJuly 1, at a meeting last Thursday.<\/p>\n\n\n\n<p>Ward 7 Councillor Chico Februarie, who opposed the budget on various occasions and threatened to obtain legal advice, says, \u201cThe budget and IDP are not a true reflection of the vital needs of community members in less fortunate wards.<\/p>\n\n\n\n<p>\u201cIt does not stand for the poorest of the poor.\u201d<\/p>\n\n\n\n<p>Executive Mayor Horatio Hendricks says every effort had been made to ensure that the budget was \u201cpro poor and fully funded\u201d.<\/p>\n\n\n\n<p>According to the approved budget, Kouga\u2019s total operating revenue for the new financial year will increase to R836,693 million. This is 10,06% or R76,46 million more compared to the 2018\/19 adjustments budget.<\/p>\n\n\n\n<p>Hendricks says the operating budget was dependent on the municipality maintaining a collection rate of 96%.<\/p>\n\n\n\n<p>\u201cIt will be funded from various sources, the major contributors being electricity (33,11%), property rates (23,51%), operating grants and subsidies (15,91%), water (9,1%) and refuse (6,42%).<\/p>\n\n\n\n<p>The total operating expenditure for the 2019\/2020 financial year amounts to R897,137 million, with the major operating expenditure items being employee-related costs (32,43%), bulk electricity purchases (25,9%) and depreciation (9,49%). <\/p>\n\n\n\n<p>\u201cThe staff b<span>udget provides for a general increase of 6,5% in line with the approved Salary and Wage Collective Agreement. It is encouraging to see that employee-related costs are well below the 35% guideline issued by National Treasury,\u201d says the Mayor.<\/span><\/p>\n\n\n\n<p>The budget for repairs and maintenance amounts to R43,692 million, of which 66,27% will be spent on infrastructure assets, including, roads and stormwater, electricity, water, sanitation, solid waste, community, sport and recreational facilities.<\/p>\n\n\n\n<p>In order to fund the operating budget, the following increases in property rates and service charges were approved:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li> Property rates: 6,5%<\/li>\n\n\n\n<li> Water: 7,5%<\/li>\n\n\n\n<li> Sanitation: 7%<\/li>\n\n\n\n<li> Refuse: 7%<\/li>\n\n\n\n<li> EMF: 0%<\/li>\n\n\n\n<li> Electricity 14,26%.<\/li>\n<\/ul>\n\n\n\n<p>The Mayor says the municipality had kept tariff increases as low as possible.<\/p>\n\n\n\n<p>\u201cIn some instances, especially when it comes to electricity, this proved to be a challenge, with NERSA giving Eskom the go-ahead to increase its bulk tariff to municipalities by 15,63% from 1 July 2019.\u201d <\/p>\n\n\n\n<p>Also approved by Council is the capital budget, amounting to R93,11 million.<\/p>\n\n\n\n<p>\u201cThis is a sharp decrease of 55,56% or R116,405 million compared to the 2018\/19 adjustments budget,\u201d Hendricks said.<\/p>\n\n\n\n<p>\u201cThis decrease is due to the Water Services Infrastructure Grant which the municipality received in the 2018\/2019 financial year for drought-intervention projects.\u201d<\/p>\n\n\n\n<p>He says the capital budget once again reflected the strides Kouga has made to strengthen its financial position, with 45,1% of R41,994 million of the budget being funded from the municipality\u2019s own income.<\/p>\n\n\n\n<p>The remaining 54,9% or R51,117 million will be funded through government grants and subsidies.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>DESPITE fierce expostulation from the opposition, the Kouga Council approved the 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