KNYSNA NEWS - Knysna mayor Mark Willemse tabled his first budget for Greater Knysna at a council ordinary meeting on Thursday 27 May.

The 2019/2020 budget amounts to about R1 182 500-billion comprising R217.5-million in capital expenditure and R965-million for operating expenses.

Focus of the final budget
Willemse said the budget focuses on investing in the upgrading and renewal of existing infrastructure and creating new infrastructure. "This is an important means of promoting sustainable growth and reducing poverty, and our budget allocations reflect this purpose." The mayor said the focus is on economic infrastructure and includes electricity transmission; wastewater treatment works; road building and maintenance; and water storage upgrades and network pipe replacement.

"We know that poor infrastructure makes it impossible for the economy of Knysna to thrive, making infrastructure investment in this budget a vital ingredient in achieving the necessary economic growth within the municipal area," Willemse said.

He added that the budget policy framework for the next three years reflects a greater alignment with the National Development Plan (NDP), as spending programmes begin to address economic constraints and the need for greater local government efficiency. "We have therefore revised our spending plans and reprioritised funding to ensure that key objectives are achieved, and that revenue generating and well-performing programmes are funded.

"Expenditure plans reflect both the medium-term investment plans and long-term goals identified in the NDP. We continue to reduce non-priority spending and reprioritise expenditure to focus on core infrastructure and service delivery issues in this medium-term revenue expenditure framework.

"To the community of the Knysna municipal area, I can safely say that the journey to improve the condition of our infrastructure (water, roads and electricity) is, at last, well and truly under way."

Capital budget
The 2019/2020 capital budget amounts to R217.5-million, which flows from the IDP revision process, contains information obtained from relevant stakeholders through ward committee and public participation processes, Willemse said.

The final budget takes into account the input given by Greater Knysna communities during the public meetings held in all 11 wards. The approximated funds in the capital budget have been earmarked as follows:

R14-million for roads infrastructure, mainly Grey Street.

R14-million for water management devices.

R17-million for the continuation of the Charlesford scheme.

R9-million for the upgrades at the Knysna wastewater treatment works.

Operating budget
The operating budget amounts to R964 910 000, which represents an increase of R50.9-million, or 5.6%, when compared with the last adjusted budget for 2018/2019, the mayor said, and that the cost drivers for the increase in the budget can be summarised as follows:

An increase of 7.1% in the wage bill, based on the new agreement that comes into effect on 1 July 2019.

A 15.3% increase in the purchase of electricity from Eskom.

Transporting waste to Mossel Bay.

Adhering to the Department of Waters Affairs' standards for operating water purification and wastewater treatment plants.

Inflationary pressure and the general increase in the price of goods and services.

Recent and expected fuel price increases and other production costs.

Operational requirements to ensure service delivery standards are complied with, referring specifically to electricity, roads, water, wastewater and waste removal.

Increases
Willemse said revenue sources remain under strain and that, in an attempt to balance service delivery with affordability, proposed tariff increases have been limited as follows:

Property rates: between 2.5% and 3.5%, household dependent.

Water services: 5.5%.

Sewerage charges: 4%.

Electricity services: 13.1%.

Refuse removal: 7.5%.

Indigent subsidies
As usual, the mayor continued, the budget makes provision for indigent support, however, he warned recipients that indigent subsidies would be withdrawn from any person who allows illegal electricity connections to their premises and/or subleases their premises, meaning that the applicant is not personally occupying the premises, but is benefiting from the subsidy.

On a monthly basis, the indigent subsidy allows for 50kW of free electricity; 6kl of free water (3kl of free water for all other households); 100% subsidy on sanitation; 100% subsidy on refuse removal; and rates as per the rates policy depending on the value of the property.

Willemse also had some good news for the business sector. Accommodation establishments with one to eight rooms will receive a 40% rebate on service charges, and sectional title units and hotels will receive a 10% rebate on sewer and water service charges.

"Thank you to every ratepayer who regularly pays their municipal accounts. Your moral and financial support allows us to better serve you," Willemse said, adding, "I would also like to thank the citizens of the Greater Knysna municipal area for engaging with and questioning this IDP and budget during the public participation process held in April."

The municipality said the final budget documents would be available within 10 days on www.knysna.gov.za or that copies could be obtained from the municipal offices in Clyde Street.

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