For Immediate Release – 28 March 2017
MAYOR TABLES RAY NKONYENI MUNICIPALITY
DRAFT BUDGET FOR 2017/2018
At its scheduled meeting of
March 2017, Council received and approved the municipality’s draft budget
tabled by Her Worship, Mayor Cllr Nomusa Mqwebu.
The tabled budget comprises of
a capital budget, inclusive of departmental requirements, as well as the
operational budget. The Mayor highlighted that the tabling of the document is a culmination of a process which began some
time ago, and in which the Municipal Manager and top management analysed the
state of the municipality’s finances, in the process making realistic
projections for the future.
Worship emphasized that the budget is premised on principles such as the
necessity for a credible budget based on realistic anticipated revenue; the
alignment of policies and our priorities; limitation on non- priority spending;
the consideration of the new General Valuation roll which comes into effect on
01 July 2017; as well as the current inflation rate which stands at 6,4 percent.
so far as the operational budget is concerned a total of R830 million, seven
thousand five hundred and twenty four rand is projected for 2017/2018. Income
is anticipated from rates, equitable share and tariffs levied for services.
Amongst items allocated in terms of expenditure from this budget are repairs
and maintenance of infrastructure, payment of salaries and general expenses.
terms of rates and tariffs the proposed increase is 6 percent, in line with
current inflation rates. However, in terms of electricity municipalities have
been advised to budget for a 0.31 percent adjustment as per NERSA guidelines up
until 05 April 2017 when the final Eskom tariffs shall be determined.
capital budget is projected at R132 million, seven hundred and eighty eight
thousand, one hundred and eighty five rand. This is inclusive of community
projects as well as departmental capital items. The capital budget will cater
for new infrastructure projects across the seven clusters of the municipality.
In total the Ray Nkonyeni
municipality draft budget for 2017/2018 stands at R1 billion, twenty seven
million, five hundred and twelve thousand, eight hundred and twenty nine rand.
The approval of Council
paves the way for public consultation to begin in all seven clusters in the
next month. Meetings will also be held with organized formations such as
business and civic associations. END
For more information contact:
Manager: Mayoralty and Communications
39 688 2056
72 057 5387
86 529 7121