Adjustment Budget receives approval for 2023/2024

KOUGA – Kouga Municipality’s mid-year Adjustment Budget for the 2023/2024 financial year was approved by Council on Tuesday during a virtual Ordinary Council Meeting.

This was after the mid-year financial report was tabled and approved, which required that an Adjustment Budget be tabled.

The 2023/2024 Adjustment Budget amounts to R1,559 billion, comprising R1,432 billion for the Operating Budget and R127,102 million for the Capital Budget.

The Operating Adjustment Budget reflects an increase of R164,077 million (12.94%), compared to the original approved 2023/24 Operating Budget of R1,268 billion. The increase in the Operating Budget is mainly made up of increased inventory consumed, debt impairment, finance charges, contracted services, and transfers and subsidies.

The Capital Adjustment Budget reflects an increase of R47,759 million (60.19%) compared to the original approved capital budget of R79,343 million.

It must be noted that the approved budget for 2023/2024 reflected a funding surplus of R14,795 million, while the 2023/2024 Adjustment Budget reflected a funding surplus of R7,042 million. The funding surplus decreased by R7,753 million due to additional funding for the resealing of roads, the upgrade of the La Mer Pumpstation, and the sourcing and securing of additional groundwater supply in Humansdorp.

“The essential improvement of the municipality’s water infrastructure, aimed at providing drinking water to residents, demanded an extra investment exceeding R15 million,” said Kouga Executive Mayor Hattingh Bornman. “This encompassed the enhancement of the La Mer Pumpstation, which will incur a cost of close to R10 million, as well as the identification and securing of additional groundwater for Humansdorp, totalling R6,3 million.

“In addition, R2,6 million is needed to drill and equip new boreholes in St Francis Bay.”

“The upgrading of the KwaNomzamo Sewerage Pumpstation and the Hankey Waste Water Treatment Works necessitated an extra investment of R1,2 million and R5,2 million, respectively.

“Additionally, R10 million will be used to reseal roads, while R800 000 will be allocated for the improvement of gravel roads.”

According to Bornman, the Ocean View electrification project received a financial boost exceeding R1,2 million, and the enhancement of the bulk 66kv overhead lines secured additional funding close to R1,4 million.

Moreover, the Loerie Sports Field will incur an additional cost of R2.2 million.

  • Free basic services to poor households
  • Free 50kwh of electricity, plus basic charges
  • Free 12klof water, plus basic charges
  • Free monthly refuse charges
  • Free monthly environmental fees
  • Free monthly sewerage charges (based on 12kl of water)
  • Less extra R85 000 on the value of the property for rates charged.