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The 2019 AGM of the BBRA will be held at 10H00 on Saturday 14 December 2019 in Crassula Hall, Betty's Bay.

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Subsequent to the report issued by Dan Fick a short while ago the Municipality held a public ward committee meeting on Monday 14 April 2014 @ 18H00 in Crassula Hall in the place of an OMAF meeting so that all property owners, where possible would be able to attend and express their views.

This event was well publicized but it was disturbing to note the few people who attended the meeting especially as the Mayor together with Directors and support staff were there to answer questions.

The following is a summary of the intentions with regard to the budget together with some background information.

Overstrand Income

Area          Percentage Increase

Property Rates        15-0%

Property Rates Undeveloped Erven    0-0%

Services – Water, Sewerage, Refuse  6-0%

Electricity        8-0%

Total Increase to Consumer    8-0% to 8-5% compared to just under 10% last year

Overstrand Expenditure

Area          Percentage Increase

Staff Salaries/Wages      9-4%

Explanations

1)  The budget is based on an inflation rate of 6-0%.

2)  Salaries/Wages are determined through collective bargaining on a national basis.

a.  Determining increases allows for inflation and notch increases.

b.  Salaries/Wages account for 31-6% of the operational budget which is within the guidelines of between 25% and 40%.

c.  Over the last two years only 13 staff have been appointed.

d.  A freeze has been placed on filling vacant posts which do not affect service delivery.

e.  A further saving on the salary budget of R1 million is being investigated through abolishing posts and centralization where prudent.

f.  Concerted efforts to improve on staff productivity.

g.  Senior management account for a small percentage of the salary/wage bill i.e.

i.  Mayor & Councilors    3%

ii.  Municipal Manager & Directors  5%

3)  Proposed Savings:

a.  Grants In Aid      R   200,000

b.  Festivals          R    320,000

c.  Ward Specific projects      R    650,000

d.  Baboon Monitoring Hermanus    R 1,356,400

e.  Closure Local Labour Promotion Office   R    104,000

Total Saving    R 2,630,400

4)  In the current year certain expenditure exceeded the total growth in income over the previous year of 10-8%. These were:

a.  18-7%    Chemicals

b.  13-4%    Fuel

c.  17-3%    Maintenance

d.  38-9%    Contracted Services

5)  The Municipality is currently investigating the possibility of outsourcing the operation and maintenance of the water and sewerage purification plants.

6)  The ageing vehicle fleet is becoming expensive to maintain and ways of financing the replacement of some of them are being investigated.

7)  The centralization of certain areas is being investigated such as Town Planning but if this occurs service will continue to be given in the various areas.

Overstrand Municipality has assured us that they will maintain quality services in core  areas

I will not go into detail on items in the capital budget but would like to point out that there is very little money to fund the many projects needing attention. Funds for capital expenditure come from certain sources i.e.:

1)  Borrowings – Limited to R40 million

2)  Surpluses from the previous year – Very small

3)  Proceeds from sale of land – A scarce commodity

4)  Grants – Designated for specific areas

We must reiterate that maintenance of roads and storm water channels is an operational issue and not a capital one.

The provision of new tarred roads and new storm water systems are of a capital nature and there is very little available to fund such areas particularly as they have to compete with the provision of new vehicles and other minor assets.

As can be seen from this information “money is tight” and you can be assured that your association will keep you informed of developments and will address issues where appropriate.