Kouga’s new billion-Rand budget and ‘pro-poor’ budget

Kouga Municipality released its draft 2022-2023 budget at a council meeting today, 30 March, announcing a R1.3+-billion operating expenditure budget and a pro-poor budget.
The main increases announced are as follows:
Operating Revenue
The total operating revenue has increased by 10.58% (by R111,727 million) to R1,168,034,215 for the 2023/2024 financial year compared to the 2022/2023 approved adjustment budget.
The total operating expenditure for the new financial year is R1,301,060 billion, a 10.44% increase.
The bulk of the operating budget the municipality says will go towards contracted services, including road maintenance (R10 million), vehicle maintenance (R8.9 million), sewer infrastructure maintenance (R7.2 million), maintenance of buildings and facilities (R6.1 million), and the consultancy fee for the renewable energy plant (R4.8 million).
Funding for the operating budget is to be derived from service charges for electricity, water, sanitation, environmental management fees, refuse collection, property rates and grants and subsidies received from national and provincial government. And 16% of the total revenue budget comes from government grants and 84% is our own revenue.
Tariff Increases:
Property Rates:
A 23.8% reduction in the rates tariff for the new financial year starting in July 2023. This means any property increasing in value by 30% or less, will experience a rates reduction.
Property rates for residential houses will increase for properties where the value has increased by more than 30%.
Pro-poor budget: All residential properties valued at R400 000 and less will not pay property rates. This was previously R100 000, while the norm is R85 000.
The pensioners rebate will double from R100 000 to R200 000, including the impermissible rate of R15 000.
There will be a 23.8% reduction in the rates tariff on properties whose value has not increased by more than 30%.
Total indigent subsidy budget is R68 492 819, which equates to approximately R1 367 per indigent household per month.
Water:
Basic water increase of 7.2% but escalating punitive measures will be implemented for households using more than 9kl per month.
Smart water meters are planned for all new buildings.
Sanitation and refuse: An increase of 6.5%,
Environmental management: An increase of 7%.
Eskom will also likely increase its bulk tariff to municipalities
Capital Budget:
Total capital budget for 2023 -2024 has doubled to R66.593-million.
Major capital projects include:
*Mimosa Street Pipeline Replacement – R16 314 317.00
*Upgrading of the Sewerage Infrastructure in Hankey – R12 808 470.00
*Upgrading of KwaNomzamo Wastewater Treatment Works – R10 632 672.00
*Paradise Beach Water Tower – R9 772 639.00
*Ocean View 1 250 Electrification – R4 086 956.00
*Energy Efficiency Projects – R3 478 260.00