The 2013/14 Operating and Capital Budget, indicative budget forecasts for 2014/2015 and 2015/2016, as well as draft budget related policies were approved by Council, with the abstention of the opposition members in the discussion and voting because certain agenda items had been distributed too late. Councillors of the ANC and NICO said this situation deprived them of taking informed decisions. Speaker Anton Coetsee, however, ruled after consultation with Mayor Nicolette Botha-Guthrie, Municipal Manager Coenie Groenewald and other role players that all councillors were in fact placed in a position to study the amendments to the budget and related documents by Friday of the previous week and that the Final Budget document that was distributed the day before the meeting was basically a compilation of information given previously.
The final adjustments to the 2013/14 Budget show an increase in the total revenue -  R786 million against the R782 million proposed in the draft budget - despite the fact that revenue from rates were reduced with R4,8 million and the income from water consumption with R120 000. The increase was brought about by housing project rollovers of R5,5 million, an NDPG grant allocation of R4 million and a public contribution  of R2,5 million for an eco centre at the Stony Point Nature Reserve.
On the Expenditure side the operational budget was reduced to R824 million from the R829 million proposed two months ago. This was brought about by a reduction of R4,85 million in the reseal of roads, anticipated savings on Blue Flag beaches and a transfer of ward project funding to the Capital Projects Budget.
The Capital Budget was increased to R110 million because of the housing project rollovers and the contribution towards the Stony Point Eco Centre, although an administrative correction on the INEP grant reduced the funds available for electrification projects with R3 million.
Property rates were brought down on commercial land with improvements to 0.00545 (from the proposed 0.00566), residential land with improvements to 0.0036 (from the proposed 0.0037) and bona fide agricultural land to 0.00090 (from the proposed 0.00093). The implication of this is that increases on property tax will be substantially lower than originally proposed: improved residential 4.05 %  instead of  6.94 %; and  improved commercial property 6.03 instead of 10.12.
Various other changes were made to the schedule of rates and tariffs, such as
• The provision of a clear definition of smallholdings which may apply for rebates or exemptions;
• A provision that privately owned properties designated or used for conservation purposes will not be rateable;
• A reduction in the proposed increase of the water tariff for wet industries using an average of 100 kℓ per day over the previous 365 days from 40 per cent to 20 per cent;
• A change in the refuse tariff structure which will imply that units in residential complexes will be charged separately;
• A clarification of what the rental tariffs for community halls will be for events hosted by the Municipality (free of charge), festivals (R750 per day) and elections (which will be in line with IEC policy).
• A stipulation that parking fees at Grotto and Kleinmond beaches will only be charged during the Western Cape December School holiday period and not during Easter;
• The re-introduction of a quarter hour parking tariff in the Hermanus CBD on weekdays; and
• The extension of a low season discount of 50 per cent to all the municipal caravan park resorts for pensioners, large groups from caravan clubs and large groups of campers  (not caravans).
As part of the process Council approved thirteen revised policies on property rates, tariffs, customer care, credit control and debt collection, the indigent, asset management, travel and subsistence, petty cash, supply chain policy management, investment and cash management, virement, budget, funding and reserves and borrowing. Two new policies were adopted on contract management and long term financial planning and implementation.