Buffalo City has proposed a R1,9-billion budget for the 2004/05 financial year, up from R1,4-billion the previous year.

Last year Buffalo City's executive mayor, Sindisile Maclean, tabled a "pro-poor" budget for the city's citizens; now he will try to extend the municipality's efforts in reaching the poor.

About 80 percent of the budget, or R1,5-billion, will cover operating costs such as the running of municipal departments. Twenty percent, almost R400-million, will be used for capital outlay.

This means municipal tariffs will increase by an average 6,89 percent. This shows a decreasing trend: last year's tariffs increased by 10 percent across-the-board. The proposed increases for 2005 and 2006 - of 5,52 percent and 5,13 percent - continue the downward trend.

Residents will now have to pay R44,37, up from R40,89, for municipal rates every month. Sewerage charges will increase from R46,80 to R50,08 a month. The price of water will also rise: 17 kilolitres of water will increase from R45,62 to R48,81 and 500 kilowatts of electricity will cost R168,99, up from R159,42. Refuse, at R44 a month, will reach R46,64.

Last month the municipality involved the public in its budget-review process in an effort to create awareness of municipal issues and encourage public participation in decision-making.

Maclean is expected deliver his state-of-the-city address and present the budget in King William's Town on 4 June.