The Municipality’s 2012/2013 budget of R811,6 million, which the Executive Mayor, Alderlady Marie Ferreira, tabled in Council on 29 March 2012, contains some good news for pensioners, indigent and poor households as well as municipal water and electricity clients.
The Mayor announced that the monthly subsidy on the municipal service accounts of households classified as indigent and poor will be increased to R360,27 including VAT, subject to certain conditions with regard to monthly income and water and electricity consumption.
This compares with R345,02, plus VAT, for indigent households and R260, plus VAT, for poor households in the 2011/2102 financial year. The increase amounts to approximately 38,5% in the case of poor households.
These households will continue to receive 6 kilolitres of water free and pay no basic charges on water. Indigent households will continue to receive 50 kWh of electricity free per month and poor households 20 kWh per month. They also do not pay for sewerage and refuse services and do not pay property rates on the first R50 000 valuation of their properties.
The total monthly income limit of a husband and wife at which pensioners will become eligible for a discount of fifty per cent on their property rates will be increased from R7 000 per month to R9 000 per month.
Pensioners with a total monthly income exceeding R9 000 but not more than R12 000 per month will qualify for a discount of thirty per cent. The upper limit in the latter category has been increased from R10 000 per month.
Pensioners will also for the first time receive a discount in respect of sewerage fees. The discount will amount to 40 per cent for pensioners with a total household income not exceeding R9 000 per month and 30 per cent when their income is more than R9 000 but does not exceed R12 000 per month.
All other households will continue to receive their first 6 kilolitres of water and 20kWh of electricity per month free, while the same property rate exemption on the first R50 000 of the value of a residential property as for 2011/2012 financial year is also recommended
Alderlady Ferreira said that Mossel Bay is one of a small minority of municipalities to subsidise services for the poor from own resources. The subsidies of indigent households are financed from the equitable share, while poor households are subsidised from Council’s internal income sources at a cost of R4,1 million for the 2012/2013 financial year.Last published 10 June 2016