Kouga Municipality has tabled a revised draft of its 2020/21 Integrated Development Plan (IDP) and budget for public comment.
Kouga Speaker Hattingh Bornman said the original draft had been adopted by the Council on 26 March and advertised for comment, as required by law.
“Due to the COVID-19 lockdown, substantial changes had to be made to the draft,” he said.
Kouga CFO Riaaz Lorgat said the nationwide lockdown had impacted on the municipality’s revenue.
“The original draft budget was based on a 96% collection rate, but this has had to be decreased to 85% as many ratepayers and businesses have been struggling to pay their municipal accounts,” he said.
“The Council has further approved various payment relief options for municipal accountholders, which will also affect the municipal revenue in the new financial year.”
He said the revised draft operating revenue for the 2020/21 year was R904,99 million while the revised operating expenditure was R986,27 million.
“The focus has been on ensuring that the budget is fully cash-backed, with the deficit due to non-cash items,” he said.
He said the proposed tariff increases, effective from 1 July, were as follows:
* Property rates – 5,25%
* Water – 8,1%
* Sanitation – 7%
* Refuse – 7%
* Electricity – 6,25% average
* Environmental Management Fee – 0%.
He said key expenditure items included bulk water and electricity purchases (28,36%) and employee-related costs (33,53%), the latter being in line with the norm set by National Treasury.
The draft capital budget for the 2020/21 year amounts to R62,95 million.
A full list of funded projects can be viewed on the municipality’s website at www.kouga.gov.za
Photo: Joey Nel