Proposed 13% Kouga tariff increase

The Kouga Council has proposed that all tariffs be increased by 13%, except for that of the electricity tariff.
The proposed electricity tariff will increase on average by 8%, but will still be subject to NERSA approval. These proposals were among others in the Draft Annual budget of the Kouga Local Municipality. They were outlined in the Executive mayor Booi Koerat’s report tabled last month.
He said: “These proposals are of course not the final product. There are some more processes to follow and it is possible that some adjustments may have to be to made to arrive at a final budget for tabling to Council by the end of May 2013.”
Koerat said the Operating Budget for 2013/2014 amounts to R586 milion. Total operating expenditure has grown by 11% or R58 million for the 2013/2014 financial year when compared to the 2012/2013 Adjustments Budget of R527 million. The capital budget for 2013/14 is R33 million.
The mayor also said before submitting the proposed tariffs for the 2013/2014 financial year that in revising the rates, tariffs and other charges for the Budget, labour costs, other input costs of services provided by the municipality, increases in external costs such as bulk services costs, the maintenance of infrastructure, the need to ensure financial sustainability, local economic conditions and the affordability of services and the municipality’s indigent policy, were some of the factors that influenced the increases proposed to Council.
“There is also a directive from National Treasury to ensure that tariffs are cost reflective by 2014.”
He said it was his privilege to submit the 2013/2014 Draft Medium Term Revenue and Expenditure Framework (MTREF) to Council as prescribed in section 16(2) of the MFMA. “Council’s strategic objectives of service delivery include the continuation of an acceptable level of services, as well as improvement in those areas where it is still lacking. Our focus in compiling this budget has been on finding a balance between good service delivery and collectable income based on the past financial year.
“Efficient and financial discipline will be vital to ensure the long term financial sustainability of this institution and that the scarce resources available are channelled to areas of greatest need. In order to address the above, this Budget aims to improve operational efficiencies.”
Koerat said, in this regard, the following areas will be prioritised internally:
•Reduction in overtime, telephone and cell phone usage and travelling; audit of all contracted services, such as photocopier machines being leased; streamlining the use of contracted security services; organisational restructuring; closing the gaps continuously for possible fraud and corruption; fiscal issues that will be prioritised and will increase budget availability include the following: enhancing revenue collection; focusing on repairs and maintenance to reduce water and electricity losses; and streamlining trading services to ensure long-term sustain ability.

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