Ratepayers association slams KwaDukuza municipality’s ‘unjustified’ draft budget

KwaDukuza residents are in for a shock from the proposed municipal budget this year, which if passed as is will mean increases of 17.8% for electricity and 9.3% for property rates.

The Dolphin Coast Residents and Ratepayers Association (Docrra) has rejected the draft budget for the new financial year saying the increases are not justified given the current economic climate.

The civic organisation said the budget lacked transparency and was not measurable.

Other increases planned are 4% for refuse removal and water and sanitation tariff increases for both residential and business will be in line with the Umgeni Water Board increase of 7%.

Siza Water managing director, Shyam Misra said Umgeni Water’s increase will be a major cost driver in their tariff determination and said they would be making their submission to the iLembe district for approval.

The municipality said its proposed electricity hike of 17.8% follows the 15.67% increase in the price for bulk electricity from Eskom.

KwaDukuza mayor, Dolly Govender, told the Integrated Development Plan (IDP) mayoral imbizo hosted by the iLembe Chamber of Commerce last Friday that above-inflation price increases were beyond their control.

The 2021/2022 draft budget and IDP has to be approved by the end of June as the budget takes effect from July 1.

A third adjustment was made to the draft budget at a virtual council meeting last Thursday after forced budget cuts of R630 000 were tabled.

The money taken from the municipal infrastructure grant (MIG) will go back to national government to fund the business rescue plan for state-owned South African Airways (SAA).

Mayor Govender tabled the estimated R2.1 billion draft budget for the 2020/21 financial year at the end of March of which R2.073 billion is for operational expenditure and R301 million for capital expenditure.

One of the municipality’s biggest costs is staff salaries with R511 million – an increase of 4% – budgeted for the 2021/2022 financial year.

Councillors are also set to get a pay rise, with R25.4 million (capped at 3.9%) budgeted for the new financial year – despite ratepayers pushing for a freeze on salaries last year.

At present councillors receive R282 870 per year.

Docrra and the iLembe Chamber of Commerce, Industry and Tourism both asked the mayor for a 2 week extension on the public participation process.

The municipality took the draft budget and integrated development plan (IDP) to public consultation in April.

It is a legal requirement that the budget and IDP undergo a public participation process before it can be adopted.

Docrra chairman, Deon Viljoen told mayor Govender that the numbers in calculating the average increase on the property valuations were not properly disclosed in the document published for public comment.

“Docrra has an issue with the presentation as it misrepresents and misleads the community when KDM states there is zero % randage increase and a 25% discount where applicable.”

“Firstly, why does it not state there is also a property value increase which makes all the difference? Docrra’s estimate is that the property valuation could on average be around 34% but we do not know. What we do know is that the budget for rates and taxes, despite the zero % randage increase and 25% discount, will still increase by 9.3%.”