NMB City Hall
The Nelson Mandela Bay Municipality budget was approved at Friday's council meeting following a presentation by Mayoral Committee Member for Finance, Malcolm Figg.
Figg told Council that collection revenue had been revised down from 88% to 85% because of the impact of the coronavirus and that there was an 81% collection rate decline in the first six months of the 2020/2021 financial year.
He said there had been delays in conditional grants with R750 million outstanding and that National Treasury had not approved roll over applications.
Figg reminded Council that Capital projects could not commence until funds had been transferred to the municipality’s account.
He presented a consolidated adjusted budget amounting to R13.406 billion made up of an operating budget of R12.306 billion and a capital budget of R1.372 billion.
Notable figures in the financial performance forecast showed that when the fuel levy of R322 million is excluded from total operating revenue the result is an operating deficit of R209 million.
Electricity revenue is projected to reduce by R4.4 million while bulk purchase for electricity decreases by R69 million.
