The KwaDukuza municipality (KDM) has promised widespread cost-cutting measures in an attempt to balance its next budget.

During the tabling of the 2025/26 draft budget at council last week, KDM mayor Ali Ngidi said bulk purchases would be cut by R176.6-million, while hiring would be temporarily ceased and service contracts renegotiated. Bulk purchases primarily refers to the municipality’s buying of electricity, so a planned cut means curbing losses.

“The municipality will launch an aggressive drive to curb non-technical energy losses,” said Ngidi.

He said better debt collection and billing services would also be introduced.

This has been a familiar refrain at previous draft budgets, but the municipality has had to allocate extra money for bulk purchases in the last three mid-year adjustment budgets, indicating that previous plans did not materialise.

Rejecting the budget, Democratic Alliance caucus leader Privi Makhan said she believed the reductions were unrealistic. She also cited concerns about hidden tariff increases and insufficient funding for infrastructure renewal and capital projects.

“We do not support the moratorium on critical funded service delivery posts, but propose an immediate moratorium on political appointments,” she said.

The hidden tariff increases referred to by Makhan relate to property rates. The general property rate rebate has been reduced from 25% to 18%, an intervention welcomed by the Dolphin Coast Residents and Ratepayers Association (Docrra).

“We are pleased that after pushing for three years, KDM has decided to leave the randage the same and rather reduce the rebate percentage,” said Docrra finance subcommittee chairman, Brian Botes.

“The main benefit of this is the improved competitiveness of KDM as a destination. This, however, does not excuse KDM from trying to sneak a whopping 9.33% rates increase into this budget.”

Botes said this could drive down collection rates when combined with the refuse removal increase (maximum of 7.3%) and electricity increase (10.7%, subject to regulatory approval). Increases will be in place from July 1. Docrra will present their objections in full at the municipal imbizo at Umhlali Prep on April 9.

“A rate increase of 5.33% is our suggestion, with balancing of the budget done through a reduction of energy losses and equitable charging of services, such as waste collection.”

The draft budget is open for public comment for 90 days, during which the municipal leadership will visit each ward for the public imbizos.

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