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Important numbers

All service delivery issues (ALL HOURS)044 606 5000
Mossel Bay Fire and Rescue Services044 691 3722
Power interruptions (day)044 606 5000
Power disruptions (after hours)044 606 5000
Fire Station: Enquiries044 606 5000
Streets/Stormwater/Sewerage Defects044 606 5000
Water Disruptions (Day)044 606 5000
Emergencies (after hours)044 606 5000
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Friday°C
Sun
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Friday°C
Sun
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Friday°C
Sun
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Important numbers

All service delivery issues (ALL HOURS) 044 606 5000
Mossel Bay Fire and Rescue Services 044 691 3722
Power interruptions (day) 044 606 5000
Power disruptions (after hours) 044 606 5000
Fire Station: Enquiries 044 606 5000
Streets/Stormwater/Sewerage Defects 044 606 5000
Water Disruptions (Day) 044 606 5000
Emergencies (after hours) 044 606 5000

COUNCIL TABLES BUDGET OF R948,6 MILLION

News

News

27 March 2015

COUNCIL TABLES BUDGET OF R948,6 MILLION

The Executive Mayor of Mossel Bay, Alderlady Marie Ferreira, tabled a total draft budget of R948,6 million for the 2015/2016 financial year at the Council meeting on 26 March 2015. This compares with the revised total budget of R914,3 million for the current financial year.
 
The total 2015/2016 budget is comprised of a capital budget of R135,9 million and an operational budget of R812,7 million.
 
With the exception of electricity tariffs, for which an increase of 12,2 per cent is proposed, the proposed increase for other service tariffs is six per cent across the board. Although the electricity tariff increase is 12,2 per cent, as approved by the National Electricity Regulator of South Africa (NERSA), the annual Eskom tariff increase amounts to 14,29 per cent, which means that the Municipality has to absorb a portion of the Eskom increase.
 
The Minister of Finance in his budget speech announced a 2 cent charge per kWh on electricity, which has not been included in the tariffs nor in the purchase costs for purposes of drafting the proposed budget. Clarity is still sought in this regard and the impact on this on the budget will be made public as soon as possible.
 
The plight of the poor has again received attention and it is proposed that the monthly subsidy for households registered as indigent or poor is increased from R404,79, plus VAT, per month to R429,06, plus VAT per month. Indigent households will continue to receive 50 kWh of free electricity per month. As in the present financial year they will also not pay for sewerage and refuse services and do not pay property rates on the first R50 000 valuation of their properties.
 
All households, including indigent and poor households, will continue to receive 6kl of water and 20 kWh electricity free per month. Mossel Bay remains one of a handful of municipalities in South Africa, which still supplies free water on the abovementioned basis to households.
 

 The total monthly income limit of a husband and wife at which pensioners will become eligible for a discount of 50% on their property rates is increased to R12 750 per month. The limit to qualify for a discount of 30% is increased to R17 000 for the 2015/2016 financial year.
 
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                                            R 320,5 million.
-           Water charges                                                  R 93,9 million.
-           Sewerage charges                                            R 46,4 million.
-           Refuse removal charges                                   R 36,6 million.
-           Other                                                                R 32,7 million.
 
The main categories of expenditure from the cash budget for 2015/2016 will be the following:
 
-           Employee-related costs of R240,7 million, which at 29,6% of the cash budget is marginally below the national norm of 30%.
 
-           Bulk purchases of R251,3 million, or 30,9% of the operating budget.
 
-           Other general expenses of R145,3 million, or 17,9% of the operating budget. This category includes an amount of R24,2 million in respect of housing top-structures, which is derived from Provincial Human Settlements Funding.
 
The major allocations in the Capital Budget are as follows:
 
-           Streets and Stormwater             :                       R 36,1 million.
-           Electricity Services                   :                       R 21,9 million.
-           Sewerage Services                   :                       R 21,1 million.
-           Water Services                         :                       R 16,4 million.
-           Human Settlements                  :                       R 24,9 million.
 
 
The draft budget, together with the draft revised Integrated Development Plan 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 at www.mosselbay.gov.za.
 
Comments or representations must be in writing and addressed to the Municipal Manager, Mossel Bay Municipality, Private Bag X29, Mossel Bay 6500. It can also be e-mailed to admin@mosselbay.co.za or faxed to (044) 606-5062. The deadline for comment and representations is not later than Monday, 4 May 2015.