Excerpts from the Mayor's Budget Speech - 27 May 2010

Transparency
The administration had put teams together to go to the different wards to listen to inputs from the community. Madam Speaker, let me use the opportunity to thank all ward councillors for chairing these sessions. Also, a word of appreciation to members of the community for making valuable and insightful submissions.

I want to assure you that your contributions have been taken into account in the final budget that is submitted to Council. However, some of your requests could not be accommodated as only matter included in our IDP [Integrated Development Plan] can be considered for budget purposes. I have instructed the administration to accommodate the new submissions in our IDP review process.

Economic crunch
We are extremely sensitive to the economic crunch that impacts negatively on the lives of our communities. As a result we have during the meeting of our Budget Committee explored the possibility of granting more relief to our pensioners by, for instance, increasing the limit for indigent subsidy.

Medium term objectives
We attempted to utilize a community based development model whereby the needs of the public were elicited by ward and the ranking determined by the backlog in basic services.

Where the 2090/2010 budget was focussed on the delivery of basic services as well as attempting to improve social development, the 2010/2011 budget is a defined effort to address the delivery of water and sanitation. We cannot as local government sit back while the poor household does not have ample potable water and safe sanitation. Infrastructure development for the delivery of basic services to the poorest of the poor [therefore] received the largest allocation.

An increase in employment of approximately 10% is indicative of our commitment to lower unemployment. A significant increased budgetary allocation is made to local economic development to fortify our effort to address poverty

Operating budget
The operational revenue will be sourced as follows
• Assessment rates R115 million
• Electricity R138 million
• Water R37 million
• Sewerage R26 million
• Refuse R18 million
• Equitable share R33 million.

The main tariff increases remains unchanged from the tabling of the draft budget at:
• Assessment rates 5.7%
• Electricity 28.5% (average)
• Sewerage Revised hydraulic tariff
• Refuse 5.7%
• Water Revised

The provisions for staff costs accounts for 35% of the total operating budget. Salaries increase by 9.5%. This is in line with the collective agreement reached by the South African Local Government Bargaining Council.

Capital budget
• Governance and Administration nil million
• Community and Public Safety R5.7 million
• Economic and Environmental Services R2 million
• Trading Services R32 million

Infrastructure and Service Delivery receives 82% of the capital budget. The actual projects associated with these capital outlays can be found in the Budget and IDP.

Praise
It is important to mention the following as an indication of the ability of the organization [Kouga Municipality] to take us forward into the new election period thus giving confidence to the public:
1. We were commended for the best Integrated Development Plan (IDP) by the Provincial Government;
2. Recognition was granted to us for the best model of Annual Report;
3. We won the runner up award for Housing Delivery;
4. To crown it all we received an Unqualified Audit Report, excellent.

(Although DAtanet cannot vouch for it, the full text of the Mayor’s Budget Speech should be found on the Kouga Municipality website, www.kougamunicipality.gov.za)