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BITOU EXECUTIVE MAYOR, COUNCILLOR MEMORY BOOYSEN, TABLES FINAL BUDGET (2016/2017) OF THE CURRENT COUNCIL

Date: Monday, 6 June 2016

In the words of Executive Mayor, Councillor Memory Booysen, as he rised to present his final budget to the Bitou Council:" As we have committed in the last four years, our Budget has proven to be an instrument to create hope in challenging economic times, the times that appear to remain with us for longer than we had anticipated. The 2016/ 2017 final draft budget creates hope, for our community and business alike as we will be continuing with creating infrastructure investment and improving living conditions whilst at the same time creating employment opportunities."

The final draft budget as presented to Council on Tuesday, 31 May 2016, amounted to R629 550 million, comprising R116 064 million in capital expenditure and R522 388 million in operating expenses.

The operating budget for 2016/2017 financial year amounts to R579,3 million which represents an increase of R20,1 million or 3,6% over the May adjusted budget for 2015/2016.

Mayor Booysen added that the capital budget was funded with R 49 965 million from national and provincial grants, R 25 498 million from borrowings and the balance of R 38 601 million from internally generated funds.

In terms of the capital expenditure, Mayor Booysen added that

R 28 514 million for housing and infrastructure;

R 39 631 million for roads transport;

R 14 048 million for electricity services;

R 13 389 million for water services; and

R 16 862 million for waste water

Over and above Escom’s electricity price increase set by the National Electricity Regulator at 7.64%, which will directly be passed onto the consumer, Bitou municipality has also approved 6% tariff increase for water consumption.

The sewage and refuse tariffs will increase by 6% and 9% respectively and rates on domestic properties will increase by 6 %. "The finance department has always argued that property rates remain a tax and that Council should strive to obtain the maximum revenue out of the rates revenue base."

Provision is made in the operating budget for subsidies to indigent households in the amount of R594.90 per month; this includes 6 kiloliters free water, 50 units of electricity, a 100% subsidy for refuse removal and sewerage charges as well as exemption from paying basic charges on water and electricity. The subsidy allowed, exceeds the national norms and stretches the affordability threshold of the municipality.

The total amount in respect of free services, inclusive of free services given in the Escom distribution areas and assessment rebates exceed R51,0 million in the 2016/ 2017 financial year.

Click on links to View the Approved Budget Tariffs and IDP 2016 - 2017 and the Annual Budget Reporting 2016 - 2017 documents

Enquiries: Manfred Van Rooyen, Mayoral Spokesperson/Media Liaison, Office of the Executive Mayor, Bitou Municipality, Sewell street, Plettenberg Bay, 6600

Tel: 044 501 3015/ 501 3009 Mobile: 063 407 3112

E-mail:MvanRooyen@plett.gov.za