Index Kouga Local Municipality budget adopted unanimously
Date Added: 05 June 2015

Kouga Local Municipality will start the new financial year on a high note following the unanimous approval of its 2015/2016 budget by the Kouga Council at the end of May.

The 2015/2016 review of the Integrated Development Plan (IDP) was also adopted unanimously at the same meeting.      

New Kouga Local Municipality Mayor, Daphne Kettledas, who called on councillors to unite in their commitment to bettering the lives of Kouga’s people, said that the new budget had been streamlined to eliminate wastage and maximise service delivery, especially to poor and disadvantaged areas.  

OPERATING REVENUE

The operating revenue for 2015/2016 has been set at R638,7 million. This is an increase of 6% or R37,3 million when compared to the 2014/2015 adjustment budget.

The expected income from rates and service delivery is:

RATES & TARIFFS

Residents can expect to pay on average between 6% and 12,2% more for services in the new financial year, starting July 2015.

Property rates will increase by 6% for businesses and 6% for residential properties. A 6% increase is also on the cards for refuse removal and sanitation.

Electricity and water will see the biggest price increases, prompted by the rising cost of purchasing these services from Eskom and the Nelson Mandela Bay Metro respectively as well as the increasing cost associated with repairing and maintaining the required infrastructure.

A tariff increase of 12% will be implemented for water from July 1, 2015, while the consumer tariff for electricity will increase by an average of 12,2% to offset the additional bulk purchase cost of 14,24%, also from July 1.

OPERATING EXPENDITURE

The operating expenditure for the new year has been set at R689,2 million, which is 2% or R12 million more than the 2014/2015 adjustment budget. The total includes an estimated R80 million for depreciation, which is a non-cash item.

Key expenditure items include R200,8 million for bulk purchases and R212,4 million for employee-related costs. Six percent of the operating budget will be put towards repairs and maintenance.

CAPITAL PROJECTS

The capital budget for the new year totals R63,57 million. It will be funded by conditional grants amounting to R33,36 million and own funding of R30,21 million. This is an increase of 35% or R16,37 million when compared to the 2014/2015 adjustment budget.

Highlights of the capital budget include: