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Last modified: 01 Mar 2017
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Council approves adjustment budget

01 March 2017

The 2016/17 adjustment budget was passed without a hitch by the Kouga Council yesterday morning (28 February).

A municipal budget has to be adjusted if revenue and expenditure estimates change and to correct any errors in the annual budget, Executive Mayor Elza van Lingen explained.

The total adjustment budget amounts to R764-million, of which R695-million is for the operating budget and R68-million for the capital budget.

The Mayor said a big increase of R14-million in expenditure has been budgeted for by the municipality. This is to cater for bulk water purchases from the Nelson Mandela Bay Metro, in line with current billing trends.

“Total expenditure amounts to R 695-million in the adjustment budget compared to the original budget of R686-million,” she said.

She said there was a net increase in expenditure of R9-million due to a decrease in staff costs of R3,8-million and a decrease of R2,8-million in repairs and maintenance The latter has been transferred to the capital budget.

The adjustment budget makes provision for a R2,2-million increase in revenue, representing 0,35 % of the total budget.

In her State of the Municipality address yesterday, Mayor Elza Van Lingen said that the cash flow of the Kouga Municipality remains constrained but that the municipality is a going concern and in no danger of bankruptcy.