Municipal budget for 2015/16
A R2,2 billion budget for the coming financial year was announced by the Polokwane Municipality during its council sitting last week.
POLOKWANE – A R2,2 billion budget for the coming financial year was announced by the Polokwane Municipality during its council sitting last week. The budget seeks to ensure basic service delivery to all communities in the Polokwane area and also to contribute towards job creation. Rasepuetja Molepo, chairperson of the finance and local economic development portfolio, announced the budget. He said as a body that served local communities, the municipality knew that provision of services and job creation was one of the five priorities set by the national government and the budget therefore aimed to drive the IDP towards addressing these priorities.
The total operating expenditure for the 2015/16 financial year was appropriated at R2,2 billion, and when compared to the 2014/15 adjustment budget, had grown by 8,3%. The budget indicated a surplus of R116,6 million, which, according to Molepo, would be utilised to fund capital projects.
The amount provided for repairs and maintenance increased from R170,6 million to R177,2 million to ensure maintenance of infrastructure. A large percentage of the total capital expenditure would be utilised to renew existing assets. The capital budget of R580,1 million increased by 26,3% against the 2014/15 adjustment budget as a result of the incorporation of the roll-over amounts in the adjustments budget. Capital projects would be funded from grants to the amount of R465,5 million, whilst R114,5 million would be funded from own funds.
The capital budget included R46,5 million for sport and recreation, R292,6 million for roads and transport, R14,8 million for electricity and R171 million for water. The budget for sanitation amounted to R500 000.
Molepo described the budget and IDP as products of the strengthened public participation campaign the municipality conducted in order to better understand their priorities. “We will continue to remain vigilant in the monitoring and implementation of the approved cash flow strategy to curtail expenditure on non-service delivery projects or programmes until the economic meltdown ends. It is crucial to be responsive to all the consequences that arise from the global economic meltdown.” He said due to limited resources, the municipality had to cut back on needs registered by the ward committees and administration; it was still very difficult to balance the expenses with the proposed increase in income. The total revenue cost to provide free basic services to indigents amounted to R63,2 million. Free basic services rendered to indigents, included 6KL of water per month, 100 units of electricity per month, free sanitation and refuse removal services, and exemption for the first R100 000 of the valuation of their properties from the payment of rates. The total contribution to indigent households for free basic services and rates amounted to R260 per month.
He said the municipal revenue base remained insufficient and needed to continuously improve over time if the municipality was to realise its developmental “smart city” path.
