COUNCIL TABLES BUDGET OF R731,4 MILLION
Mossel Bay Municipality
NEWS RELEASE
DATE : 30 MARCH 2010
COUNCIL TABLES BUDGET OF R731,4 MILLION
The Executive Mayor of Mossel Bay, Alderlady Marie Ferreira, tabled on 30 March 2010 a total budget of R731,4 million for the 2010/2011 financial year. This represents an increase of only 3,3 per cent compared to the original budget of R707,7 million for the current financial year.
In her budget speech the Mayor said the small increase is indicative of responsible budgeting as well as Council’s empathy for ratepayers in the difficult economic conditions being experienced at present. It is also well below the norm laid down by the National Treasury.
The budget for the 2010/2011 financial year comprises an operating budget of R592 755 904 and a capital budget of R138 645 630. It is based on service delivery goals or performance objectives identified as priorities in the Municipality’s approved Integrated Development Plan (IDP), which was also tabled at the meeting.
The operational budget includes departmental as well as non-cash transactions to the value of R85,7 million, which, if it is subtracted, decreases the operating budget to R507 037 232.
The Mayor said the bulk of the 2010/2011 capital budget is devoted to infrastructure improvements in the following services:
- Streets and Storm Water R20,4 million.
- Sewerage R17,5 million.
- Water R45,5 million.
- Cleansing R3,2 million.
- Public Safety and Rescue Services R3,3 million.
- Electricity Distribution R31,2 million.
- Sport and Recreation R6,9 million.
- Housing R5,3 million.
The National Government will contribute R26,3 million to the Municipality’s capital budget and R35,9 million to the operating budget. The Provincial Government will add R5,3 million to the capital budget and R14,4 million to the operating budget.
The Mayor announced that the basic electricity tariff for households will remain unchanged for the 2010/2011 financial year while consumer tariffs will be increased by 22,03 per cent. This is well below the increase of 28,9 per cent, which was approved by the National Electricity Regulator. The prepaid tariffs for indigent households will be increased by twelve per cent.
All domestic electricity consumers who are on the one-part prepaid tariff at present, will be transferred to the two-part tariff structure, which means that they will, like credit customers, pay a monthly basic charge of R148,54, plus VAT, plus a reduced charge of 63,7 cents, plus VAT, per unit used. The present unit charge is 84,2 per cents, plus VAT.
Consumers who can prove that they have a monthly household income of no more than R10 000 and who were permanent residents at that address for at least nine months of the year and whose average monthly electricity purchases for the previous four months have been less than 600 kWh, can however apply to remain on the one-part tariff system.
The first six kilolitres of water per month will continue to be free, but the basic monthly water tariff will increase from R85,48, plus VAT, per month to R93,17, plus VAT, per month. The tariff for consumption of 7 kilolitres to 20 kilolitres per month will increase from R3,61, plus VAT, to R4, plus VAT, per kilolitre. The tariff for consumption from 21 kilolitres to 30 kilolitres per month will go up from R3,61, plus VAT, to R5, plus VAT, per kilolitre. Thereafter the tariffs will increase at consumption intervals of ten kilolitres up to 80 kilolitres per month. The tariff for consumption between 61 kilolitres and 80 kilolitres will increase from R7,30, plus VAT, to R15, plus VAT, per kilolitre. For consumption of more than 80 kilolitres per month, the tariff will go up from R9,83, plus VAT, to R20, plus VAT, per kilolitre. The incremental tariff increase structure is aimed at discouraging the excessive use of water.
Sewerage tariffs will remain unchanged for the second year in succession while the tariff for domestic refuse removal will be increased from R67,47, plus VAT, to R77,59, plus VAT, per household per month. The tariff for old age homes and retirement villages will increase from R33,47, plus VAT, to R38,80, plus VAT, per month, per household.
A structural change is to be introduced in two phases with regard to property rates. This is necessary to gradually increase the ratio between the two main categories, namely industrial/commercial and residential to the accepted norm of 50:100. The present ratio is 42,4:100 and this will be increased to 46:2:100 in the 2010/2011financial year.
The tariff for residential properties, including flats and group housing but excluding accommodation establishments, is to be increased from R0,001763 to R0,002074. A new tariff of R0,003142 is introduced for accommodation establishments, regardless of their zoning, as well as for agricultural properties or portions of such properties if they are used for business or industrial purposes. Accommodation establishments, for which consent use has been approved previously, pay residential rates at present. Agricultural properties, excluding land used for business or accommodation purposes, will be rated at R0,000518 in 2010/2011.
The first R50 000 of the valuation of residential properties will again exempted. Pensioners will qualify for a discount of 50 percent on property rates if the total monthly income of husband and wife does not exceed R5 000. The latter limit compares with the R3 000 in force at present. The upper limit to qualify for a pensioner discount of 30 per cent will be increased from R5 000 to R8 000 per month.
The service account subsidies for indigent households will be increased from R268,11, plus VAT, to R315,53, plus VAT, per month. The subsidies of poor households will be R230, plus VAT, compared to R180, plus VAT, at present. These households will continue to receive 50 kWh of free electricity per month as well as 6 kilolitres of free water.
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 7 May 2010.
Ends
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