Newcastle Municipal budget – what you can expect
Here's what you can expect for the 2020/21 financial year.
This evening Newcastle Mayor, Dr Ntuthuko Mahlaba presented the Newcastle Municipality’s annual budget for 2020/21.
Titled ‘The People’s Budget’, Cllr Mahlaba explained: “Funds allocated to all municipalities belong to the people, not specific individuals, nor to officials or their friends, nor to any particular business or business person.”
He addressed residents on radio and through live streaming via the municipal Facebook page, reiterating the responsibility of those in government, to improve the community.
“Our task ahead is to advance towards a society that is currently experiencing socio-economic challenges. Our responsibility is to provide water and sanitation, construct more roads in Madadeni, Osizweni, Normandien, Charlestown, Blaauwbosch, Ngogo and every other corner of this beautiful municipal area.”
Cllr Mahlaba confirmed the municipality has had to ‘restructure finances and adopt and enforce strict cost containment measures’ and has made an application for financial relief to ease the burden of residents who are struggling to pay for basic necessities.
He also highlighted several achievements in terms of completed projects.
The total consolidated budget for the 2020/21 financial year is R2.5 billion – R2.4 billion has been allocated for the operational budget and R125.5 million for capital projects.
The following has been allocated towards the operational budget:
R126 million – bulk water purchase
R534 million – bulk electricity purchase
R593 million – employee related costs
R420 million – depreciation
R185 million – debt impairment
R183 million – other expenditure
R41 million – interest loans
R95 million – repairs and maintenance
R28 million – remuneration of councilors
R16 million – contracted services.
Tariff increases:
Ratepayers can expect between a 5% and 6.55% increase for water services, refuse removal, property rates, sanitation and electricity services.
For the full story, buy this week’s copy of the Newcastle Advertiser, on sale from Thursday (July 2, 2020).
ALSO READ: Residents share views on proposed tariff increases
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Email: Reveshni Douglas (Editor) at reveshni@caxton.co.za
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