The Executive Mayor of Mossel Bay, Alderlady Marie Ferreira, tabled a total draft budget of R811,6 million for the 2012/2013 financial year at the monthly Council meeting on 29 March 2012. The budget is comprised of an operational budget of R690,1 million and a capital budget of R121,5 million.
The overall budget represents a decrease of 1,04 per cent compared to the revised budget of R820,2 million for the 2011/2012 financial year. The operational budget includes departmental and non-cash transactions, which, if subtracted, reduces the operational budget to R597,4 million.
The Mayor announced that increases of eight per cent each are proposed in respect of water tariffs, refuse removal tariffs and property rates. The tariff on sewerage charges remains unchanged while an increase of 11,03 per cent in electricity tariffs are proposed. The proposed electricity tariff increase is less than the Eskom increase of 13,5 per cent and is also subject to approval by the National Electricity Regulator of South Africa (NERSA).
Alderlady Ferreira said it is estimated that the effect on the proposed tariff increases on a normal household will be 9,93 per cent per annum. However, if electricity is excluded from the average increase on the services over which the Municipality has control, namely water, refuse removal and sewerage, the average increase is 6,4 per cent.
She said the budget is based on good service delivery but that the Eskom price increases, which continue to be way above the inflation rate, continue to contribute to the ever increasing burden on ratepayers who are confronted by rising costs on many fronts. This also impacted on the Municipality’s ability to keep rates and tariff increases at the levels that Council would like to and maintain Mossel Bay’s hard-won reputation as one of South Africa’s leading municipalities.
The Mayor said the bulk of the 2012/2013 capital budget is devoted to infrastructure improvements in the following services:
Streets and Storm Water R29,7 million.
Development and Planning R22,6 million.
Electricity Services R20,9 million.
Sewerage Services R13,4 million
Water Services R8,6 million.
Corporate Services R8,6 million..
The Development and Planning Budget includes R22,5 million for infrastructure for the Asazani/Izinyoka housing project, while the Corporate Services budget includes R4 million towards the Thusong multi-purpose centre that will be built in Asla Park.
The budget document is available for public inspection and comment at municipal offices and libraries in Mossel Bay, D’Almeida, KwaNonqaba, Great Brak River, Hartenbos, Friemersheim and Herbertsdale. It will also be placed on the Municipality’s website. Comments must be in writing and reach the Municipal Manager, PO Box 25, Mossel Bay, 6065, by not later than 4 May 2012.