Budget ‘focused on service delivery’
At a special council meeting on Thursday, 31 May the executive mayor of Mossel Bay, Alderman Harry Levendal's 2018/19 draft municipal budget of R1.1 billion was approved.
The mayor, however, called on all beneficiaries of free basic services as provided for in the budget to review their circumstances to ensure they do, in fact, continue to qualify for the relief afforded to them.
Do the right thing
All those who qualify according to the council policy for the free basic services are requested to review their circumstances. The free basic services are meant to assist the poor and should a household income be more than R6 760 per month, you are obligated to contact the municipality immediately to be taken off the list of qualifying indigents. This is the right thing to do morally, the mayor says. Norms and values and ethical behaviour can make it possible for the municipality to serve all its people, he adds.
Free basic services
"The 2018/19 budget is again focused on service delivery," the mayor says. "The plight of the poor has again been considered and it is proposed that households classified as indigent will receive a monthly subsidy of R636.72, inclusive of VAT, on their household accounts, subject to certain conditions regarding monthly income and water and electricity consumption.
"Households classified as poor will receive a subsidy of R318.36, inclusive of VAT.
"These households will continue to receive six kilolitres of water free and pay no basic charges on water. Indigent households will continue to receive 50 kWh of free electricity per month. As in the present financial year they will also not pay for sewerage and refuse removal services and do not pay property rates on the first R81 000 valuation of their properties, if the market value of the house is less than R81 000; otherwise the indigent household will receive a subsidy equal to the market value property or the first R50 000.
Pensioners
The 2018/19 budget again brings financial relief to pensioners in the form of special rebates on property rates and sewerage charges.
Equitable share
The Municipality annually receives an equitable share, which is designed to fund the provision of free basic services to people who cannot afford these basic needs. For the 2018/19 year, the municipality will receive an amount of R80 258 000.
More than R1 billion
The total budget for 2018/19 amounts to R1.1 billion.
This consists of a capital budget of R181 million and the operating budget of ust below R1 billion. The capital budget amounts to 15% of the total budget and the operating budget to 85% of the total budget.
The proposed capital budget shows an increase of 19% compared to the revised capital budget for 2017/18. The proposed operating expenditure budget shows an increase of 5% over the revised 2017/18 budget.
Mayor Levendal said through the ongoing and successful execution of the Ward Discretionary Funding Model the municipality could take needed infrastructure development and service improvement to all 14 wards.
"In addition, the management team provided guidance on what is necessary to maintain as well as expand infrastructure to be able to cope with the future growth of Mossel Bay."
Mayor Levendal also stressed that many of the recent developments in recent months were as a direct result of the intervention of his office.
"The clinic being completed in Asla Park is the result of our intervention, our negotiation with PetroSA to have the clinic erected. "The DA does not take the accolades for it," the mayor said.
He also alluded to other successes, such as the new housing development for the Khayelitsha area, where people are living in dire conditions.
He alluded to the proposed Mayixhale Road Corridor, saying his office has engaged with he provincial government for more money to make this development, that will enhance local economic development, a reality.
"Even the Shoprite development at the kwanonqaba MALL was the result of negotiations and land being made available to ensure that the people of KwaNonqaba do not have to travel at a cost to shopping areas in town. I was instrumental in having the Thusong Centre placed where it is, a location that benefits all of our people. The services of Cape Access greatly benefits the young people of the area.
The free basic services are meant to assist the poor and should a household income be more than R6 760 per month, you are obligated to contact the municipality immediately.