Knysna budget in a nutshell

KNYSNA NEWS - After a number of ward-based public participation meetings that aim to explain the 2017/2018 tabled budget to the people of the Greater Knysna, it has become clear that many residents still struggle to understand some aspects of the budget.

The first of these is the difference between the operational budget and the capital budget.

According to Knysna acting municipal manager Johnny Douglas, the operational budget is for expenses related to the day-to-day running of the municipality, and the capital budget refers to assets that are bought to be used in the provision of services.

The operating budget for the 2017/2018 financial year amounts to a surplus of R51.6-million, which represents a decrease of R26.7-million or 34.1% under the 2016/2017 adjusted budget.

The surplus is derived from the difference between the total operating revenue, R870 188 500, and the total operating expenditure, R818 557 887.

Revenue relates to the income the municipality expects to receive in the 2017/2018 financial period, and expenditure relates to the expenses the municipality expects to have.

Budget breakdown

Major revenue sources according to the municipality’s budget presentation are as follows:
• Assessment rates: R204.15-million
• Electricity: R233.24-million
• Water: R71.32-million
• Sewerage: R14.03-million
• Refuse: 19.96-million
• Grants and subsidies: R143.52-million

• Other: R128.78-million

Expected expenditure according to the municipality’s budget presentation:
•Employee-related costs: R227.176-million
• Remuneration of councillors: R8.267-million
• Debt impairment: R82.993-million
• Depreciation and asset impairment: R30.899-million
• Finance charges: R19.502-million
• Bulk purchases: R157.625-million
• Other materials: R31.746-million
• Contracted services: R29.676-million
• Transfers and grants: R2.280-million
• Other expenditure: R228.394-million

The total funded capital projects for this period amounts to R123.1-million.

A breakdown of the main focus areas:
• Water infrastructure: R27.7-million
• Electricity: R23.8-million
• Sanitation: R10.6-million
• Roads infrastructure: R9.7-million

• Refuse removal: R1.2-million

Public participation ends Friday

“We are having very active participation from the different communities thus far and a number of submissions have already been received. We are, however, expecting most of the submissions closer to the due date on May 12.

The municipality will only respond to all comments/submissions and inquiries after all the comments/submissions have been considered," said Douglas.

“Due to the socioeconomic nature of the various wards, the submissions vary in nature. Input received so far deals with service delivery issues, infrastructure development, job creation and skills development initiatives,” he added.

"Submissions" in this regard refers to input from the community; these are aspects that community members feel should receive attention in their area, comments and suggestions regarding the budget itself, and any queries that might exist.

Douglas said that responses to all submissions/inputs will be available on May 18. “We urge our residents to allow the legislative process to unfold,” he said.