Record budget for district

May 30 , 2008

Zululand OBSERVER

	Record budget for district Tanya Waterworth WHILE a record budget was presented to council at the uThungulu District Municipality, concern was expressed as to reaching future targets. The District's Multi-Year Budget and IDP Report for 2008/09 and 2010/11 financial years listed an Operating Revenue of R386 816-million for the ensuing year, increasing to R394 272-million and R411 210-million for the proceeding two financial years, while Operating Expenditure totalled R276 922-million for the next year, with R299 555-million and R334 503-million for the following two years. Capital Expenditure totalled R170 894-million for the ensuing year and decreasing to R124 718-million and R91 707-million for the proceeding financial years. While the sound financial structures and policies at the municipality resulted in an unqualified audit for the sixth consecutive year, uThungulu District Mayor, Stan Larkan said in his address to council that the Replacement Levy Grant, which was implemented following the abolition of the previous form of levy collection, was 'no substitute' in terms of potential revenue income collected. As the grant makes up a major portion of income for the district, Larkan said, 'Placing dependence on the Levy Grant makes it difficult to predict the future in terms of achieving the 2012 targets for water and sanitation services as prescribed by National Government and unless substantial funding is received, future targets are simply unattainable.' Tariffs The proposed water tariff increase for the various categories range from 6% for domestic consumption and up to 23% for commercial, with it being noted that six kilolitres free water is for domestic consumption only, while availability charges for all urban areas will increase by 6%, as will standpipe and un-metered household connections. Other tariff increases such as sanitation, solid waste and cemetery will also increase by 6%. As provider of electricity to Nkandla only, a 15% increase was announced for various consumers' load usage (subject to NER approval), including single phase and maximum demand meters. From the floor, the across-the-board 15% increase for businesses and households was questioned. The mayor responded by saying the increase was reasonable and added that the municipality may come under pressure to absorb more expected increases during the year.