The Executive Mayor of Mossel Bay, Alderlady Marie Ferreira, tabled a total draft budget of R1 029 461 664 for the 2016/2017 financial year at the Council meeting on 31 March 2016.
The total 2016/2017 budget is comprised of a capital budget of R152 222 003 and an operational budget of R877 239 661.
With the exception of electricity tariffs, for which an increase of 7,64 per cent is proposed, the proposed increase for other service tariffs is eight per cent across the board.
The 2 cent charge per kWh on electricity, which the Minister of Finance announced previously, has not been included in the tariffs nor in the purchase costs of electricity for purposes of drafting the proposed budget. Clarity and how it will be treated is still sought and an announcement will be made in due course.
It is proposed that the monthly subsidy for households registered as indigent or poor is increased from R429,06, plus VAT, per month to R463,36, plus VAT per month. Indigent households will continue to receive 50 kWh of free electricity per month.
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 R13 750 per month. The limit to qualify for a discount of 30% is increased to R18 300 for the 2016/2017 financial year.
Alderlady Ferreira said the capital budget, which shows a decrease of 12,5 per cent compared to the revised capital budget for the present financial year, will be funded with an amount of R107,4 million from the Municipality’s Capital Replacement Reserve, while the balance will be funded from external sources. Municipal Infrastructure Grant funding of R20,2 million will be the biggest external source of funding.
She said it is of the utmost importance that capital projects need to be prioritised to ensure that available funds are allocated towards the most important projects.
The proposed 2016/2017 capital budget will be allocated mainly to Technical Services (R85,2 million) and Planning and Integrated Services (which includes Roads and Stormwater as well as Housing) (R45,6 million).
The proposed operating expenditure budget amounts to R877 239 661, which is an increase of 5,5 per cent over the revised 2015/2016 budget. The proposed operating revenue budget is R902 059 864. If capital transfers and donated assets are excluded, it amounts to R864 600 128.
The total contribution of the National and Provincial Governments to the capital expenditure budget is 23,8 per cent.
The budget is open for public inspection on the Municipality’s website as well as at all municipal offices and libraries in the Mossel Bay municipal district. Comments on the budget must be forwarded in writing to the Municipal Manager, Mossel Bay Municipality, Private Bag X29, Mossel Bay 6500 or by e-mail to admin@mosselbay.gov.za by not later than 2 May 2016.