The 2019/20 draft budget was tabled at the March meeting of Council. Now councillors, residents and stakeholders have some time to review and digest the proposed budget.
The draft annual budget as well as the 2nd Review of the Integrated Development Plan (IDP) and Draft Water Services Development Plan (WSDP) for the 2019/20 financial year is available to the community for representations and comment.
Residents can peruse copies of these documents at the municipal offices and libraries, or download it from Overstrand Municipality’s website (www.overstrand.gov.za).
The closing date for written representation from the public is set for 30 April 2019. The Municipality will take concerns and comments forward before the adoption of the budget on 29 May 2019.
Mayor Coetzee stated that the restoration of the damage to infrastructure following the devastating fires at the beginning of the year, the civil unrest of 2018 and the present state of our countries economy make it a challenging task of balancing the cost of providing basic services to the residents of Overstrand.
The draft budget for the 2019/20 financial year is represented by a capital budget of R232,2 million and an operational budget of R1,248 billion.
The proposed capital budget shows an increase of R57 million, compared to the third adjustments budget of the current (2018/19) financial year. This mainly relates to the roll-over of projects amounting to R36,6 million.
The 2019/20 capital budget is allocated mainly for the development and maintenance of infrastructure.
The top 10 capital projects are as follows:
Hermanus New Waste management Facility (R20,3 million)
Water Master Plan Implemetation (R15 million)
Electrification of low cost housing areas (R12 million)
Hermanus: MV & LV Upgade/replacement (R8,8million)
CBD Regeneration Program (R7 million)
Vehicles – 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 mainly on service charges to balance its budget, which are derived from the following sources: Electricity (R398,3 million), Water (R118,8 million), Sewerage (R77,8 million) and Refuse Removal (R70,1 million).
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. The budgeted property rates amounts to R240 million.
- 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 is set to increase by 12.86%, in view of the increased costs to be incurred by Overstrand Municipality in dumping at the newly constructed Cell 4, with another contribution cost the moving of the Hermanus Waste management Facility, for which borrowing will be incurred.
- It is proposed to increase Property Rates by 5,7% across the board.
- The tariffs for sewage and water to increase by 5.7%
- Average increase for sundry tariffs amounts to 5.7%.