KwaDukuza budget changes not enough to ease burden on cash-strapped residents, say opposition parties
While the budget was passed, some opposition councillors believe it will worsen the financial situation of many residents.
The KwaDukuza council last Wednesday adopted the 2023/2024 budget by a large majority vote, but opposition parties argued that objections by residents had fallen on deaf ears with increases proposed in the draft budget only marginally lowered.
The budget passed with a vote of 36 for and 18 against.
Mayor Lindile Nhaca described the budget as “historic,” saying it spoke volumes about the municipality’s resolve to address the region’s socio-economic challenges. Property rate increases will now be 6.5% instead of the 7% initially proposed, refuse tariffs will be 9.5% higher (0.5% lower than initially announced), while the electricity tariff increase dropped to 15.1% (from 18.65%).
Responding to the ‘pro-poor’ budget, DA caucus leader Tammy Colley expressed outrage and said the “unacceptable and above inflation increases” were an insult to citizens who took the time to object.
“Residents made it clear these increases are unaffordable. This could see collection rates fall below the budgeted 95% – a drop from the draft budget’s estimation of 96%, further proof that KwaDukuza Municipality knows collection will be a challenge going forward,” she said.
She raised concerns about electrical losses of almost 27% (about R250-million), employee-related costs making up 24% of the operational budget – an increase of 5.4% this year – while critical posts affecting service delivery remained vacant.
ActionSA caucus leader Nel Sewraj also expressed his disappointment.
“Even though there has been an outcry against the initial 7% property rates hike, it has fallen on deaf ears because the municipality is still demanding a steep 6.5% hike,” he said, noting it was higher than National Treasury’s projected 5.4% inflation rate.
He said the increases were too steep given the current economic climate and was concerned about losses in the electrical department.
“At least bring our municipality back to losses of 8-12% – the industrial norm – and, if done, we could save R100-120-million per year and use these savings to cushion the tariff increases imposed on our residents,” Sewraj said.
On another issue, Independent Alliance’s Melisizwe Ntleko said the municipality had yet to deliver on its promise of upgrading the Ballito taxi rank.
In her budget presentation, Nhaca said R2-million had been allocated to the Ballito taxi rank for commuter shelters and upgrades to ablution facilities, with R6-million budgeted for the KwaDukuza taxi rank.
“When you spoke of the KwaDukuza taxi rank being privatised, we were reminded of the Ballito taxi rank where nothing has been done for the past five years,” Ntleko said.
He also raised concerns about rate exemptions for all properties with a value below R130 000.
“The RDP houses you are building now as the African National Congress are valued at R130 000. Now this, on its own, is saying that you want to make the people you regard as poor pay rates already,” Ntleko said.
He added electricity increases would see a rise in illegal connections and that the property rates increases would cause people to live on the streets.
“We therefore cannot support a budget that intends to oppress our people, especially the poor,” he said.
The Inkatha Freedom Party, Economic Freedom Fighters, African Transformation Movement, African Christian Democratic Party, African Independent Congress and the ANC voted for the adoption of the budget.
The municipal budget for 2023/2024 comes to R3.523-billion, with a capital budget of R950.8-million.
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