MOSSEL BAY NEWS - The executive mayor of Mossel Bay, Alderman Harry Levendal, tabled a total draft budget of R1 062 149 729 for the 2017/18 financial year at a special meeting of the Mossel Bay Town Council on Friday, 31 March. This was the first time an initial budget exceeding R1 billion had been proposed for Mossel Bay.
Alderman Levendal said council, cognisant of the heavy burden ratepayers were carrying in the present negative economic climate, had endeavoured to keep the rate increases to the absolute minimum required to maintain service delivery levels at an acceptable standard as well as to ensure continued maintenance and upgrading of infrastructure.
15% increase in refuse charges
He said that, except for electricity tariffs, for which an increase of 1,88 percent is proposed, and refuse charges, for which an increase of 15 percent is proposed, an increase of six percent across the board was proposed.
The increase in the electricity tariffs is the percentage by which NERSA allows municipalities to increase their tariffs.
The increase in refuse charges is the first of approximately four increases above the inflation rate that will be made.
This additional tariff increase will contribute to the costs of the proposed new regional landfill facility for the Eden District municipal area, which is also intended to service Mossel Bay.
New legislation has resulted in extremely high specifications for new landfill sites but the Municipality has started investigating several additional waste management options, including increased recycling, as an alternative to participating in the regional landfill site to reduce the cost for ratepayers.The total 2017/18 budget comprises a capital budget of R141 996 778 and an operational budget of R920 152 951.
The capital budget amounts to 13,4 percent of the total budget and the operating budget to 86,6 percent.
Service delivery
The municipality's first Integrated Development Plan (IDP) for the present council cycle was tabled at the same meeting. In tabling the IDP and the draft annual budget for the 2017/18 financial year as well as the two outer years as prescribed by the Municipal Finance Management Act, Alderman Levendal said the budget was again focused on service delivery and that communities were consulted on their needs through the IDP processes.
Alderman Levendal said the plight of the poor had again received attention and it was proposed that the monthly subsidy for households registered as indigent or poor was increased to R501,83 plus VAT per month on their household accounts, subject to certain conditions regarding monthly income and water and electricity consumption.
The monthly income limit of a husband and wife at which pensioners will become eligible for a discount of fifty percent on their property rates and sewerage charges is R14 575 per month. The limit to qualify for a discount of 30% is R19 400 for the 2017/18 financial year.
All households, including indigent and poor households, will continue to receive 6kl of water and 20kWh electricity free per month. Mossel Bay remains one of few South African municipalities which still supplies free water on this basis to all households.
The municipality will again be dependent mainly on service charges to balance the operational revenue budget.
Excluding departmental and other internal charges, the main contributors are the following:
• Electricity charges: R377,6 million.
• Water charges: R111,1 million.
• Sewerage charges: R57,8 million.
• Refuse removal charges: R42,7 million.
The total contribution of the national and provincial governments to the capital budget amounts to 21,4 percent of the budget. Their total contribution to the operating revenue budget amounts to R116 582 830, or 12,7 percent.
The major allocations in the capital budget are as follows:
• Technical Services (Electricity, Sewerage and Water Services): R76,55 million.
• Planning and Integrated Services (including Roads and Storm Water Services and Human Settlement): R47,76 million.
• Community Services: R12,44 million.
The internal Capital Replacement Reserve, which stands at R94,39 million, will be the main source of funding for capital projects, while Municipal Infrastructure Grant (MIG) funding will contribute R21,46 million.
The draft budget, together with the draft revised IDP 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.
Comments invited
Comments or representations must be in writing and addressed to the Municipal Manager, Mossel Bay Municipality, Private Bag X29, Mossel Bay 6500.
They can also be emailed to admin@mosselbay.co.za or faxed to 044 606 5062. The deadline for comment and representations is no later than Friday, 5 May.
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