The growing costs of municipal employees were a flashing red light that council should not ignore.
In opposing the KwaDukuza 2017/18 budget tabled last week, DA caucus leader Madhun Sing said employee costs would rise R36 million over last year’s R359m, an increase of more than 11 percent, while total operating revenue is expected to grow by only seven percent.
“The red light is flashing and we must take stock of ourselves. Better management of our limited resources, and carrying out skills audits, training and development is required. If not managed it will lead to cash flow problems within a year or two. Revenue and expenditure management is fundamental to the sustainability of the municipality,” said Singh.
He said the party was also unhappy with the repairs and maintenance budget. The asset management plan requires 40% of the capital budget to go towards renewal of existing assets. Council has provided only 15%.
“While there are challenges in building new facilities especially in rural wards, this issue will impact negatively towards the ongoing health of the municipality,” he said.
The customer satisfaction survey carried out last year indicated that half of the municipality’s residents were not happy with the services of the municipality.
“Service delivery on all fronts is not up to the expectation of residents. We must improve service delivery and hold departments accountable. Cost containment measures must be adhered to in line with goods governance and best practice. We need to cut frills and channel funds towards service delivery.”
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