Overstrand Council unanimously approved the Executive Mayor’s Budget and Integrated Development Plan for the 2020/21 financial year on Wednesday, 27 May 2020.
Given the current challenges that ratepayers and the Municipality face, sweeping changes to the proposed draft budget had to be considered to mitigate risks resulting from the outbreak of the COVID-19 Coronavirus.
Combined, the 2020/21 Expenditure Budget will amount to R1.342 billion Operational Expenditure and R303.7 million capital expenditure.
The revenue, including capital grants, amounts to R1.287 billion.
With the exception of electricity, other service tariffs will, on average, increase by 4,5%. The basic and unit charge for electricity will increase by 6,22% (pending NERSA approval).
The cost of electricity from ESKOM to the Municipality will increase by 6,9% and in terms of the directive from NERSA the electricity tariff to Municipal consumers will increase by 6,22%, decreasing from 15% as was included in the Draft Budget.
The tariffs for refuse removal are set to increase by 4,5% in accordance with the 2020/21 budget.
The property rates for all categories of property - business and undeveloped erven included, will be reduced from 6,9% as proposed in the Draft Budget, to 4,5%.
For water and sewage, tariffs have been set with an average increase of 4,5%. This includes the first 6kl of water consumed. Indigent households, will continue to receive 6kl of water free per month.
Water-borne sewage for single and intermediate residential units will be calculated at 70% of potable water consumed with a cap of 35 kℓ. Water-borne sewage for general residential units (blocks of flats) will be calculated at 90% of potable water consumed with a cap of 50 kℓ. In terms of water-borne sewerage, all properties will also pay a basic charge subject to the classification of the service.
The impact on the average medium sized household in terms of municipal accounts for the coming financial year is as follows:
Property rates: Residential 4,5%
Sewerage tariffs 4,5%
Refuse tariffs 4,5%
To assist in rebuilding the economy of the Overstrand, R15 million has been provided for temporary positions to help in creating jobs for our residents.
All items of a Capital nature that can result in job creation have also been included in the budget, particularly where this will address ageing water reticulation systems, as well as sewerage projects, and importantly also, storm water projects.
Businesses and residential ratepayers who found themselves under financial stress may enter into an extended term payment agreement with the Municipality for their March, April, May and June Municipal accounts.
A temporary adjustment for all accommodation establishments to be charged the residential property rates tariff retrospectively from April through to June will also be considered at a Special Council meeting in June.
No new posts were added to the staff establishment for the new financial year of 2020/21, therefore the 57 new permanent staff positions proposed in the Draft Budget have been withdrawn. This includes the additional Law Enforcement staff. The Law Enforcement Division will be reorganized to allow for the K9 units planned for Gansbaai and Kleinmond to be established.
The Driver’s Licence testing centres planned for these two areas have been postponed.
Copies of the reviewed IDP and documentation pertaining to the approved 2020/21 Budget are on the municipality's website (go to www.overstrand.gov.za, click on strategic documents and then on Budget or IDP).