Mayor defends increase

JON HOUZET

DESPITE numerous objections from ratepayers, Ndlambe mayor Sipho Tandani said a 12% budget increase was necessary to deal with service delivery issues and implored ratepayers to "bear with us”.

Tandani was speaking at Wednesday's council meeting to table the final budget for 2012/2013. After introducing the budget in a lengthy speech, he proposed that "no discussion be entertained” about it at the council meeting but councillors rather wait until a budget workshop in June.

Although the budget was tabled for approval, it was with the clause that this was not "final approval” but approval of the documents submitted for consideration.

The mayor acknowledged many public comments were received stating the 12% increase was "unacceptable” but he said they lacked recommendations on what should be taken out of the budget to reduce the increase.

"It is very difficult to deal with such comments when no alternatives are presented,” said Tandani.

However, Wednesday's council agenda included many written objections where such recommendations were made, with lists of budget items that ratepayers considered "excessive” or "wasteful” expenditure, like budgeting R120 000 for an advertising imbizo, R150 000 for municipal postage, R132 000 for photocopier paper, R15 000 each for laptops, R200 000 for training employees, R1,29-million for library salaries and R1,28-million for legal debt collection.

"The budget for the rental of office equipment appears extremely excessive at R2,2-million,” said Ndlambe Ratepayers Forum chairman Tom Cockbain.

Ratepayer groups further recommended salary freezes for top staff, that an increase for other staff be limited to the 6% inflation rate, and pointed out the potential income from debt collection – which Ndlambe undertook to pursue vigorously – was not reflected in the budget.

In his comprehensive comment on the budget, ratepayer Paul Probert said if the municipality collected just half of the R100-million in account arrears there would be "no need for budget increases for a couple of years”.

In his response to the comments and objections raised, Tandani said there was ratepayer opposition to a municipal salary increase every year, but "the response will always remain that local government salary increases are part of a central bargaining process and we are legally forced to abide by the decision of the South African Bargaining Council”.

"The issues regarding increasing the productivity of our staff will however be a matter high on my agenda,” he said.

He said the difference between residential rates and business rates – the draft budget was going to decrease business rates this year and raise residential and farm rates to make up the shortfall – would still be evaluated by council before approval of the final budget.

He admitted the municipality had not conducted a means test "of each household” but said the municipality used all information at its disposal to consider the impact of tariff increases on the community.

Ratepayer groups asserted the municipality was ignoring national Treasury guidelines regarding increases, as municipalities are advised to budget for a 5% cost of living adjustment and have to justify all increases over the 6% inflation rate.

Tandani insisted the municipality took the Treasury guidelines into account, "but one has to be realistic when dealing with electricity increases, petrol price increases and fixed cost increases that can't be avoided”.

"It would be irresponsible of the municipality to implement national Treasury guidelines when it knows that by doing so the municipality will face serous financial problems,” he said.

In the DA's response to the budget, caucus leader Ross Purdon said the DA could not support approval of the budget.

"We as the DA cannot support a 12% increase,” he said. "Budget cuts will have to be made to reduce the percentage increase to single figures, while retaining the capital portion of the budget at R5-million. We believe this can be done by all officials working smarter and more efficiently.”

Purdon also said the DA rejected the 10.5% salary increase "no matter what Salga, the unions and the Bargaining Council decide on. Treasury recommendation equate to half of this”.

After the meeting Ndlambe Action Group chairman Derek Victor said: "I can't tell the difference between this meeting and the one in March – what was the point of the meeting? And once again the finance director was not present.”

"I'm also disappointed in the mayor's failure to address the issue of the photocopier tender issue after he promised to at the public meeting earlier this month.”