Draft budget of R1,5b for Council
2011-03-10
Anne Kruger
THE Drakenstein Municipality has approved a draft budget of R1,5 billion for the next financial year, with ratepayers facing a hike of between 7% and 12% in their municipal accounts from 1 July, depending on the size of the household and the resultant use of services. The Council has approved an increase of 5% in property rates, a 7% increase for refuse and sanitation, 10% in water tariffs and a 20,38% increase in electricity tariffs (due to the steep increase in Eskom rates). The property rate increase has been fixed at 5% per year for three years until 2012, due to the relatively low generic growth in the local economy. Pensioners with a household income of R3780 or less, and disabled persons, pay 50% less on property tax (apply for the rebate at the municipal office). Indigent households with an income under R2808 receive subsidies on electricity (100 free units of electricity and 10 Kl of water free as well as R87,50 credit on sewerage and refuse removal). The capital budget amounts to R339 million, up 18% from R278 million last year. Of this total, R139 million will come from the Council’s own coffers, R137 million will be funded by loans and R63 million will come from state grants. The capital budget includes community halls planned for Fairyland and Groenheuwel, as well as Van Wyk’s Vlei, improvements to the Paarl waste water treatment works (R33 million) and the Wellington works (R13 million), as well as a new fence around the landfill site in Wellington (R5 million). The operating budget amounts to R1,245 billion (13% more than last year’s R1,1 billion), with the salary bill increasing by 11,5% (inclusive of 1% growth) and making up 25% of the expenditure. The budget for repairs and maintenance increases by 9,2% to R83 million. This includes maintenance of sewerage and water distribution, electrical connections and streets. This also includes IDP projects like mayoral bursaries, and ward projects like removal of alien vegetation. Cuts have been made on conference fees, consultancy fees and entertainment, to stay within the budget guidelines. The final budget will be approved in April.
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