The budget comprises R323,9 million’s capital expenditure and operational expenditure amounting to R877,2 million.
CDM Mayor, John Mpe addressed council and said that the budget is funded from grants to the amount of R950,7 million plus revenue from water sales, the interest on investments and other income from sale of tender documents, explaining that the budget is 91% grant funded.
“If you look at the operating revenue, apart from revenue from grants, there is an increase of 2% on the interest on investments, amounting to R21,2 million. Another increase of about 6% is on the water sales, amounting to R76,4 million,” Mpe said. According to Mpe, the municipality’s operating expenditure will be R877,2 million which includes R364,7 million budgeted for salaries and allowances of councillors to the amount of R17,3 million. An amount of R67,2 million is set aside for operating projects and repairs and maintenance will require R20,3 million. Capital projects remain the backbone of the municipality and an amount of R323,9 million is provided and being funded by equitable share and municipal infrastructure grants (MIG). The capital budget includes operations and maintenance amounting to R25,7 million. Corporate Services was allocated a budget of R8,5 million that will cover IT related expenses, purchase of furniture, vehicles and the fire services fleet.
Mpe emphasised that the budget will ensure that CDM will fundamentally change the financial structure of the district in order to change its course towards the type of a district it desires. “We desire a district that is developmental in nature, spatially integrated and united, embraces inclusive economic growth and allows us to remake ourselves in the medium term and beyond,” Mpe explained.
Mpe concluded by saying that this budget seeks to allocate resources for the priorities that the new council will implement in its first financial year which he believes will unite the municipality to extend basic services to more of its people. “It also enables us to substantially fund the start of a new mandate term taking into account the diverse aspirations of our people to have universal access to water and other basic services and live a better life,” he added.
