Kouga Municipality’s cash-backed draft budget and tariffs for the 2021/2022 financial
year, starting July 1, were approved unanimously by Council on Tuesday, March
31.
This,
despite challenges such as maintaining an acceptable employee related cost
ratio, curtailing electricity and water losses at acceptable levels and
increased cost associated with bulk electricity purchases.
Kouga
Executive Mayor, Horatio Hendricks, said that every effort had been made to
ensure that the budget was pro-poor and fully funded.
The
total draft budget amounts to just over R1 billion, of which just over R1 074
million is for the operating budget and R61 million for the capital budget of
the municipality.
“The
operating budget will be funded from various sources, the major contributors
being property rates (22.65%), bulk electricity (34.61%), sanitation (6.07%)
and refuse (5.77%),” Hendricks said.
The
total operating expenditure for the 2021/2022 financial year amounts to just
over R1 074 million, 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%).
In
order to fund the operating budget, the following increases in property rates
and service charges were approved, with effect from July 1, 2021:
Property
rates: 5.25%
Water:
7.1%
Sanitation:
6.5%
Refuse:
6.5%
Electricity:
14.59%
Environmental
Management Fee: 0%
Hendricks
said that the municipality had kept tariff increases as low as is possible. “In
some instances, especially when it comes to electricity, this proved to be a
challenge, with Eskom increasing its bulk tariff to municipalities, he said.
“R10
million was set aside to cater for the ongoing road resealing project
throughout Kouga – including Tokyo Sexwale and Pellsrus. The upgrading of
gravel roads received a budget of R14.2 million. The
Sea Vista Sports Field in St Francis Bay will, furthermore, be upgraded at a
cost of R4.1 million this year, while the sanitation system in Hankey will be
upgraded to the tune of R9.2 million. Other
projects include the electrification of RDP houses at a cost of R6.7 million.”
Kouga
Speaker, Hattingh Bornman, said that members of the ANC refused to comply with
the Rules of Order and decided to leave the meeting at own will.
“We
will continue to provide excellent services for all communities and build on
previous successes in the next financial year.”
