The full Council of Overstrand Muncipality has unanimously approved its Integrated Development Plan and a R1.135 billion budget for the 2017/18 financial year.
The total 2017/18 budget is comprised of a capital budget of R97.6 million and an operational budget of R1.038 billion.
With the exception of property rates, which will increase by 7.4%, other service tariffs, will, on average, increase by 6%. Electricity consumption increases by a maximum of 1,88%.
The charge for the first 6kl of water increases by 11,5% or 46 cents per 1 000 litres. Indigent households, will continue to receive 6kl of water free per month
OPERATING REVENUE BUDGET
The total operational revenue amounts to R993.2 million, with a budget deficit of R44.6 million.
The deficit is mainly due to non-cash items such as depreciation, provision for post-retirement benefits and debt impairment for traffic fines amounting to R160 802 798, of which a major portion for of depreciation relates to unbundled assets with the implementation of GRAP. “This means that, despite the deficit, our budget is fully cash-backed, as confirmed by Provincial Treasury in their assessment of the new budget”, executive mayor Smith said.
Funding for the 2017/18 operating budget will be obtained from various sources. These include service charges such as electricity, water, sanitation and refuse collection. Other major funding sources include property rates as well as grants and subsidies received from national and provincial government.
The impact on the average household in terms of municipal accounts will be as follows:
Property rates: Residential 7,40%
Sewerage tariffs 6%
Refuse tariffs 6%
The Capital budget for 2017/18 totals R97,6 million, which 13% more than the 2016/17 adjustments budget.
This now includes an amount of R1 632 000, which was identified as roll over projects from 2016/17, as well as a reduction in the Housing allocation that was brought forward to the 2016/17 financial year and reprioritisation of the 2017/18 allocation.
A total of R7,8 million of the capital budget will be used to purchase new vehicles from own funds.
Other highlights on the capital budget include:
- R9.4m for Hawston housing project: Integrated Residential Development Plan - IRDP (Ward 08)
- R8.2 for WWTW upgrade in Stanford - (Ward 11)
- R5m towards upgrading of pump stations - Overstrand
- R4.65m to Hermanus: Medium Voltage (MV) & Low Voltage (LV) Electricity upgrade/replacement (Ward 03)
- R4.5m to Hawston: bulk water upgrade for housing project (Ward 08)
- R4.1 towards installation of civil services for Beverly hills housing project (Ward 02)
- R4m to Hawston housing project – Access and Main Collector Roads (Ward 08)
- R4m towards electrification of low cost housing areas (Wards 04,05,06)
- R3.9m to Hawston housing project bulk storm water (Ward 08)
- R3.8m towards new reservoir for Pringle Bay (Ward 10)