Budget focus on service delivery

King Cetshwayo District Mayor NP Mkhulisi presenting the draft budget

THE King Cetshwayo District Municipality tabled its 2017/2018 to 2019/2020 draft budget at a council meeting last week, prioritising water and sanitation, local economic development, sports development, society’s marginalised groups and the landfill site.

District Mayor NP Mkhulisi said the municipality serves a population of almost one million people and the bulk of the budget is allocated to water and sanitation as the district is a water services authority.

‘Our aim is to maintain tariff increases at levels that reflect an appropriate balance between the affordability to poorer households and other customers, while ensuring the financial sustainability of the municipality.

‘Overall, the total revenue anticipated for the municipality in the 2017/18 financial year is R998,7-million. This is a net decline of R139m from the projections.

‘Our tariff increase for the 2017/2018 financial year is once again compiled against the backdrop of a number of tough economic factors, including the effect of the drought and resultant increase in water tanker costs, and the reduction in our grant funding.

‘This is however balanced with the need to remain affordable and with due consideration of the tough economic climate under which our consumers are struggling.

‘Water tariff increases will average 6%, sanitation and cemetery tariffs will increase by 10% while solid waste tariffs will go up 20%. Ad hoc service charges will increase by 10%,’ she said.

Budget expenditure

• The overall expenditure for the 2017/18 financial year is R998.7million rand, decreasing by R138m from the 2017/18 indicative budget approved in the 2016/17 Medium-Term Revenue and Expenditure Framework (MTREF)

• Operational budget, including employee costs, is R618-million, an increase of R24.9-million from the 2017/18 indicative budget approved in the 2016/17 MTREF

• Salary increases of 7.36% has been factored into the draft for 2017/18 in terms of the current collective wage agreement, with the total salary budget amounting to R227-million

• A budgeted increase of 7.36% has been provided for Councillor allowances, noting that these are determined in terms of the Remuneration of Public Office Bearers Act

• There has been an increase of 11% in the salary budget compared with the indicative budget during the 2016/17 MTREF. This is as a result of the 7.36% increase together with the new posts that have been created during the course of the 2016/17 financial year.


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