Kouga draft budget

Draft budget and IDP approved unanimously

Kouga Municipality’s draft budget for the new financial year was unanimously approved by Council on Thursday (30/03/2017).

Executive Mayor Elza van Lingen said the draft budget, as well as the draft Integrated Development Plan (IDP), would now be taken to communities for feedback so that both documents could be finalised in line with legislation and what Kouga’s people consider to be the priorities.

The draft IDP for the five-year period 2017/2022 was also approved by Council at the same meeting. The final documents will be tabled to Council for adoption before the end of May 2017 and implemented from 1 July 2017.

The draft Medium Term Revenue and Expenditure Framework (MTREF) for the period 2017/2018 to 2019/2020 is the first budget to be compiled by the new DA-led Council following the local government election of August last year.

“We faced some significant challenges in compiling the draft, including, the higher costs of bulk water, fully implementing cost-containment measures, allocating sufficient funds for the rehabilitation and maintenance of infrastructure and achieving an acceptable cost coverage ratio,” the Mayor said.

“Funding also had to be set aside for our fleet replacement plan while additional money had to be budgeted for employee-related costs because of outstanding staff matters that were never concluded under the previous Council.”

Highlights of the draft budget are as follows:

OPERATING BUDGET

The operating revenue for 2017/18 totals R758, 009-million. This is an increase of 18,55% compared to the 2016/17 Adjustments Budget.

The main revenue sources are electricity (32,29%), property rates (23,32%), operating grants and subsidies (15,07%), water (9,89%) and sanitation (6,58%).

The operating expenditure for 2017/18 totals R811,469-million, resulting in a budget deficit of R53,46-million. It is a 16,67% increased compared to the 2016/17 Adjustments Budget.

The main expenditure items are employee-related costs (31,55%) and bulk electricity purchases (23,07%) and depreciation (10,32%).

The significant increase in operating revenue and expenditure results mainly from new reporting requirements set by the Municipal Standard Chart of Accounts (mSCOA), to be implemented country-wide by municipalities from 1 July 2017.

The proposed tariff increases are:

  • 8% for property rates
  • 9,5% for water
  • 9% for sanitation
  • 9% for refuse
  • 6% for the Environmental Management Fee
  • An average of 1,88% for electricity, subject to approval by the National Electricity Regulator of South Africa (Nersa).

CAPITAL BUDGET

The draft capital budget for 2017/18 totals R67,080-million, which is a slight decrease of 1,91% compared to the 2016/17 Adjustments Budget. It will mainly be funded from government grants and subsidies, as the municipality has reached its prudent borrowing limits and internal funding is limited.

Capital projects on the draft include almost R12-million for new vehicles to boost service delivery and R24,898-million to complete the upgrade of the Kruisfontein Waste Water Treatment Works at Humansdorp.

The Mayor stressed that both the budget and IDP were still in draft format and that changes could still be made to it.

“This is why we will be presenting the drafts to our communities during April and May so that their inputs can be taken into consideration when we finalise the documents.”

The dates of the meetings are published under New budget and IDP to be taken to communities for feedback

 

IDP meetings

New budget and IDP to be taken to communities for feedback

The Kouga Council would like to invite all residents and stakeholders groups to a series of community consultation meetings to discuss the new Integrated Development Plan (IDP) and budget for Kouga Municipality.

The draft IDP for 2017/2022 and draft budget for 2017/2018 were approved by the Kouga Council on Thursday (30/03/2017).

Kouga Executive Mayor Elza van Lingen said the drafts would be taken to the community for feedback in April and May.

“We promised residents that we would be transparent and include them in our processes. This series of meetings is an opportunity for residents to participate in how they are governed. We would like to encourage all communities to attend,” she said.

All but two of the meetings, at Paradise Beach and Ons Tuiste in Humansdorp, will start at 6pm.

The meetings have been scheduled as follows:

  • Ward One will have two meetings. The first meeting will take place on 18 April at the Oyster Bay Community Hall, followed by a meeting at the Sea Vista Community Hall on 20 Apri
  • Ward Two will meet on 19 April at the Pellsrus Community Hall.
  • Ward Three is set to meet on 11 April in the Newton Hall, Jeffreys Bay.
  • Ward Four will meet on 24 April at the Baptist Church Hall.
  • Ward Five will meet on 25 April at the Kruisfontein Community Hall.
  • Ward Six is set to meet on 26 April at the KwaNomzamo Community Hall.
  • Ward Seven will also have two meetings. The first meeting will take place on 2 May at the Loerie Community Hall, followed by a meeting at the Katrien Felix Hal in Thornhill on 3 May.
  • Ward Eight will also be meeting on 3 May but at the Newton Hall, Jeffreys Bay
  • Ward Nine will meet on 4 May at the Vusumzi Landu Hall, Hankey
  • Ward Ten is set to meet on 8 May at the Dan Sandi Community hall, Patensie.
  • Ward Eleven will be meeting on 9 May at the Newton Hall, Jeffreys Bay
  • Ward Twelve will be holding three meetings. The first will take place on 10 May at the St Francis Village Hall. The second will take place at the Paradise Beach Dutch Reformed Church hall at 3pm on 15 May and the third will take place at the Humansdorp Country Club on 16 May.
  • Ward Thirteen will meet on 11 May at the Weston Community Hall
  • Ward Fourteen is set to meet on 15 May at the Tokyo Sexwale Sportsfield
  • Ward Fifteen will be holding two meetings, both on 16 May. The first meeting will start at 3pm and take place at Ons Tuiste in Humansdorp. The second meeting will start at 6pm at the Humansdorp Country Club and will be a joint meeting with Ward Twelve.

Enquiries can be directed to the Manager: IDP, Colleen Dreyer, at cdreyer@kouga.gov.za or 042 200 2143.