The Dolphin Coast Residents and Ratepayers’ Association (Docrra) is preparing to mount a legal challenge to the KwaDukuza 2021/22 budget and property rates increases in particular.
KDM’s proposed tariff increases were passed at a virtual council meeting last Thursday, with only the Democratic Alliance objecting to the new budget and tariff increases.
Docrra chairman, Deon Viljoen said on Tuesday the association was taking legal advice as the municipality had failed to participate with the community during their preparation of the budget.
“The municipality contacted us at the last minute to engage and ask questions. Docrra is not satisfied with the participation that it has received on the budget and we are consulting with lawyers to establish what the next step is.
“At our engagement meeting with municipal officials last Wednesday – one day before the budget was presented to council – they admitted that the budget was on their agenda for the next day and there would be no changes to it,” said Viljoen.
“After unpacking the 522 page budget our alarming concern is that property rates will be increased by a larger percent than what the municipality cares to admit. The calculations are misleading as they failed to add that property values have increased on average by 32% which translates to rate increases of around 11%. At the same time the municipality themselves have objected to the rates of 2 000 properties that they feel are too low.”
At the meeting last week, Mayor Dolly Govender blamed time constraints for the late engagement process with Docrra.
Residents face further hefty rises in tariffs come July 1 when the new municipal financial year begins.
The budget amounts to just over R2 billion, of which R1.87 billion is for the operating budget and R321 million is for capital expenditure.
The operating budget will be funded from various sources, the main contributors being property rates (R528 million), bulk electricity (R887 million) and refuse (R65 million).
The municipality said its proposed electricity hike of 17.8% – a jump from 6.9% last year – follows the 15.67% increase in the price of bulk electricity from Eskom.
While Cllr Govender said the municipality had kept tariff increases as low as possible, given the economic impact of the Covid-19 pandemic, this had proved a challenge.
Democratic Alliance caucus leader, Madhun Sing said the valuation roll on property would impact ratepayers.
“With unemployment over 30%, slow economic growth, the pandemic and many other uncertainties will put ratepayers in a very awkward position in paying for services.”
Sing also raised concerns at the high employee related costs which accounted for 25% (R511 million) of the total operational expenditure budget.
Councillors received a pay hike of 4% while staff salaries increased by 8.25%.
The African National Congress, Inkatha Freedom Party, Economic Freedom Fighters, Al Jama-ah and the Independent Party supported the budget.
Cllr Jennifer Vallan on behalf of the ANC said the budget sought to address service delivery.
She said council was concerned at invasions of council-owned land earmarked for service delivery projects.
“As the ANC we are calling on the municipal manager and our legal department to take necessary legal action against land invaders and ensure security companies and anti-land invasion units are visible on the ground.”
Vallan also stressed council needed to move away from depending on consultants and contractors.
“We must make sure we skill our employees and utilise them optimally. We have also noted that in terms of our bylaws there is a lack of reinforcement from a number of departments. We want to urge all business units of the bylaws that have been adopted by council and there must be compliance of these bylaws and enforcement.
The increases for the new financial year are: Rates: 8%; Water and sanitation: 7%; Refuse: 4%; Electricity: between 15 -17.8%.
