The new draft budget launched by the Overstrand Municipality at a council meeting held on 30 March can have an enormous financial impact on the ratepayers’ pockets.
The Executive Mayor, Dr Annelie Rabie, quoted Dave Ramsey in her pro-poor budget speech: “A budget is telling your money where to go, instead of wondering where it went”.
She pointed out that the sustainability of a municipality is a key driver of building investment trust. “While Overstrand Municipality is currently financially sound and meets the prescripts of sustainability we do have to cut our coat according to our cloth. We currently have sufficient funding to cover four to six months of operational expenditure. I am comfortable we are in a safe position.”
She said council had adopted a resolution that the existing Integrated Development Plan (IDP) will be extended for the 2022-’23 financial year. “This gives us an opportunity, with effect from August 2022, to start the design of the new-generation IDP, with full focus on manifesting the 3Cs in pursuit of our overall vision of an #overstrand4all.” The three Cs are: communication, crime prevention and law enforcement, and cost and ease of doing business.Proposed budget for 2022-’23 . The budgeted revenue excluding capital grants received, amounts to R1,537 billion. . The budgeted operational expenditure amounts to R1,616 billion (this includes non cash items like depreciation). . The capital budget amounts to R212,8 million and will be used for very specific capital projects.
Rabie also explained that during the past two financial years, councillors have not received an increase. “No indication has yet been given whether councillors will receive an increase for 2022-’23,” she said. Staff vacancies are still frozen and these may be filled only after motivation to the Municipal Manager. New tariff increases on basic services for the next financial year. Rates 5,9%;. Sewer 4,3%; . Refuse 5,9%;? ??? . Water 4,9%;? . Electricity 10,33% (indicative, based on Eskom increases).
Interesting to note that as part of the Overstrand Municipality pro-poor approach to this budget, they have announced that for indigent households, the benefit of 6 kF of free water will be increased to 10 kF of water effective 1 July and in respect of sewerage the 4,2 kF free sewerage will increase to 7 kF. Allocations. For 2022-’23 R152,6 million has been appropriated for the development of basic services infrastructure, which represents 71,1% of the total capital budget of R212,8 million;. Wastewater infrastructure has the second highest allocation, at R45,9 million or 31,1%; of this amount. Water management at 25,7%;. Waste management represents 1,3% or R1,9 million and 42,8 % or R65,3 million is going towards electricity. . Over the three-year Medium-Term Expenditure Framework (MTREF), the capital housing grant expenditure relating to housing infrastructure provision amounts to R67,4 million. Top 10 capital projects. Low-cost housing construction contracts across the Overstrand at R39,785 million; . The new 66 kilovolt substation for Franskraal, Kleinbaai and Birkenhead in Gansbaai at R37,5 million;. The upgrading of pumpstations and rising mains across Overstrand?at R23,6 million;. Kleinmond Wastewater Treatment Works refurbish/upgrade at R20,2 million; . Replacement of waterpipes across the Overstrand receives R16,472 million;. Electrification of low-cost housing areas also across the Overstrand receives R16 million;. R11,013 million for the Masakhane Housing project in Ward 2; . The upgrade of water lines and a new booster pumpstation valves for Ward 2 R7 million; . Ward 1 receives R5,615 million for the upgrading of bulk water supplies;. Zwelihle Library R4,373 million.