04 April 2017
Draft 2017/18 Budget Tabled
The Executive Mayor of George, Ald. Naik today tabled the draft 2017/2018 budget during a Special council meeting. In terms of section 18(1) of the MFMA an annual budget may only be funded from, realistically anticipated revenues to be collected, which include, cash backed accumulated funds from previous years’ surpluses not committed for other purposes; and borrowed funds, but only for the capital budget.
Considering the prevailing economic challenges facing South Africa which will continue to pressurise municipal revenue generation and collection levels, George Municipality has adopted a conservative approach when projecting the revenue in the 2017/18 draft budget.
Alderman Naik stated George Municipality is organisationally obligated to improve efforts to limit non-priority spending and to implement stringent cost-containment measures.
For 2017/2018 MTREF the Budgeted Operating Revenue increases from R1 734 million to R1 915 million.
To fund the Operating budget, the following tariff increases are necessitated:
Ø Rates 11%
Ø Water 8%
Ø Electricity 1.88%
Ø Refuse 15%
Ø Sewerage 8%
Ø General Tariffs 6%
Capital Projects to be funded from the Capital Replacement Reserve (CRR) have been capped at R79,97 million, with R159 million (74,3%) of the total budget for Civil Engineering Services funded from grants. R73,63 million (46,23%) of the Grant funding is earmarked for the further rollout of the George Integrated Public Transport Network (GIPTN).
National Treasury has implemented mSCOA regulations which are applicable to all municipalities as from 1 July 2017. Technically, for a municipality to be regarded as mSCOA compliant on 1 July 2017 it must be able to transact across all the mSCOA segments and its core system and all sub-systems must seamlessly integrate.
George Municipality must therefore be able to accommodate the seamless integration of the Integrated Development Plan (IDP), Service Delivery and Budget Implementation Plan (SDBIP) and Budget facilities into the core financial system as these documents create a point of departure for the transactional environment come 1 July 2017. As an early implementer of mSCOA George Municipality is positive that we will meet the challenge to transact across all the mSCOA segments as set by National Treasury from 1 July 2017.
The Council of George Municipality invites all members of the community to comment or submit inputs in writing regarding the information pertaining to the Draft IDP and Budget before or on 8 May 2017.Last published 04 April 2017