NMB projects collecting an extra R140m in rates in 2013/2014.

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Nelson Mandela Bay is projecting to collect an additional R140 million from rates in the 2013/14 financial year, pushing the total to R1.21 billion, according to a report from Acting Municipal Manager Themba Hani that will be submitted to Council next week.

A General Valuation of properties in the Metro is currently underway and the rates on the new valuations will be applicable from July 1, 2013, at the start of the next financial year.

The projection is also based on an increase of 13% in property rates from July 1, 2013.
In terms of the projections, the Metro will collect R1.36 billion from rates in 2014/15 and R1.51 billion the following year – increases in property rates are put at 12% and 11% respectively for the two financial years.

As far as service charges are concerned, the Metro is projecting an increase in revenue of R528 million, taking the total to R4.48 billion for 2013/14.

This is based on an increase of a 13% tariff increase for water, sanitation and refuse, decreasing to 12% and 11% respectively in the next two financial years.

The Metro’s multi-year budget makes provision for a 13.5% increase in the electricity tariff for each of the next three financial years, although this is subject to the National Energy Regulator of South Africa’s multi-year price determination for Eskom.

The revenue collection rate for the next three financial years has been set at 95% and no growth in the revenue base has been projected.

Maintaining the collection target rate is listed as one of the matters that could have a significant financial impact on future budgets.

With regard to maintenance, the report states that executive directors have been requested to finalise the evaluation and quantification of backlogs in order to address them within a reasonable time-frame.

It states that essential maintenance must be given priority and budget provisions must not be reduced in favour of other demands of short-term benefit, as this will contribute to the perpetuation of backlogs.

The report states that the increase in the budget for repairs and maintenance will be limited to 8% for the next three financial years.

(Source: Metro Minute - to subscribe mail metminutes@iafrica.com)