Proposed KDM budget to hurt ratepayers’ pockets

"We were forced to be extremely conservative in our planning" - KDM mayor, Lindile Nhaca.

Increases in the cost of electricity, rates and refuse services may soon hit KwaDukuza residents’ already tightened purse strings.

The proposed increases were revealed as part of KwaDukuza Municipality’s (KDM) 2022/2023 draft budget at council last Thursday.

This is the first step in the budgetary approval process, and the public still has time to comment before the budget passes at the end of May.

Headlining the changes are a 5% rates increase, from 0.824 to 0.865 cents in the rand, a refuse increase of 6% and an average electricity increase of 7.4%.

Democratic Alliance caucus leader Tammy Colley urged residents to comment on the draft budget.

“Any increases will be hard for consumers to accept with a basic grocery basket seeing a R400 increase this year – and a R90 increase in one month – and the petrol price skyrocketing. The funding comes from the public, so it is vital their voices are heard,” said Colley.

The suggested general rates rebate remains stable at 25%, which was welcomed by councillors.

Given the consistent blackouts and electricity issues in KwaDukuza, Independent Alliance caucus leader Melisizwe Ntleko cited the electricity increase as a primary concern.

“We already have some of the most expensive electricity in the province and we strongly believe the people of KwaDukuza had hoped to get relief from the financial oppression they currently face. The higher electricity costs are also going to motivate more electricity theft, further damaging the municipality’s ability to collect tariffs,” he said.

In her delivery of the draft budget, KDM mayor Lindile Nhaca stressed it was needs based.

“We were forced to be extremely conservative in our planning. We were underpinned by a variety of ideals but emerged with a budget that is needs driven with no room for ‘nice to haves’,” she said.

Elsewhere in the budget, capital expenditure sees a proposed increase of about R65-million, from R321-million to R386-million.

“I see the capital budget has increased steeply, but I am not sure why because the municipality seems to have neither the will nor the capacity to carry out these projects,” said ActionSA caucus leader, Nel Sewraj.

Nhaca referred to 44 projects already budgeted for, saying it was important for the municipality to focus on creating functional infrastructure.

Taking a big picture view, total expenditure has a proposed decrease from R2.166-billion to R2.129-billion. This is expected to bounce back by almost R100-million for the 2023/2024 budget.

“We unfortunately have to be realistic in these difficult times with limited resources available. I have, however, no doubt that with hard work and perseverance we will emerge from these challenging times, stronger and wiser,” said Nhaca.

The budget will be available for inspection at libraries and civic buildings across KwaDukuza, as well as on the municipal website at kwadukuza.gov.za.

To comment, either email municipalm@kwadukuza.gov.za or hand deliver a letter to one of KwaDukuza’s municipal offices.


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