Tough economic times and the local, draft municipal budget for 2019/20 – open for public comment – mean a tightening of belts, and proper budgeting for most residents.
Mayor Dudley Coetzee stated that the restoration of the damage to infrastructure, following devastating fires at the beginning of the year; the civil unrest of 2018; and the present state of the country’s economy make the task of balancing the cost of providing basic services to the residents of Overstrand a challenging exercise.
“The municipality tried to keep the rate increases affordable, and to the minimum required to maintain service delivery at an acceptable standard, as well as to ensure the continued maintenance and upgrading of existing infrastructure,” said a representative of Overstrand Municipality. “The budgeted property rates amount to R240 million.”
The draft annual budget, with the second review of the Integrated Development Plan (IDP) and Draft Water Services Development Plan (WSDP), was tabled on 27 March at a council meeting where the draft budget for the 2019/20 financial year was represented by a capital budget of R232,2 million, and an operational budget of R1,248 billion.
The proposed capital budget, allocated chiefly for the development and maintenance of infrastructure, shows an increase of R57 million, compared to the third adjustments budget of the current (2018/19) financial year. This, primarily, relates to the roll-over of projects amounting to R36,6 million.
Copies of documents are available at the municipal offices and libraries or download them from Overstrand Municipality’s website www.overstrand.gov.za
The closing date for written representation from the public is 30 April 2019. The municipality will consider concerns and comments before adopting the budget on 29 May 2019.
Top capital projects:
- New waste management facility for Hermanus – R20,3 million
- Water Master Plan implementation – R15 million
- Electrification of low-cost housing areas – R12 million
- Hermanus: MV & LV upgrade/replacement (R8,8million)
- CBD regeneration program – R7 million
- Vehicles for waste management – R5,9 million
- Kleinmond – sewer network extension – R5 million
- Hawston Industrial (Business) HUB – R4.5 million
- Stormwater – Main Rd and High Street – R4.5 million
The proposed, operating expenditure budget of R1,248 billion shows an increase of 8.1% over the current (2018/19) third-adjustment budget. The total revenue budget amounts to R1,228 billion. This includes capital transfer of R60,3 million.
The municipality relies largely on service charges to balance its budget. These are derived from:
- Electricity: R398,3 million
- Water: R118,8 million
- Sewerage: R77,8 million
- Refuse removal: R70,1 million
Proposed tariff increases:
- The proposed increase for electricity is 15% – based on the latest tariff application by Eskom to NERSA – subject to the final determination of the tariff increases by NERSA.
- Refuse removal charges are set to increase by 12.86%. This is due to increased costs incurred by Overstrand Municipality for dumping at the newly-constructed cell, with another contribution cost for moving the Hermanus Waste Management Facility, for which borrowing will be incurred.
- An increased property rate of 5.7% across the board, is proposed.
- The tariffs for sewage and water to increase by 5.7%
- Average increase for sundry tariffs amounts to 5.7%.