This is a brief summary of the presentation held at the Mayoral Imbizo on Monday 29 April 2024:
- Mayoral welcome & introduction
- Annual meeting prior to budget for comment and discussion prior to approval
- IDP Manager newly appointed – René Uren introduced by the mayor (ruren@ndlambe.gov.za)
- It was raised that the Ward 10 Committee was largely not present – only Dawie van Wyk (NRF), Lindsay Burrow (PARRA) and Stuart Boucher (Royal Alfred Marina) were present.
- Nadine discussed the issues at hand
- It was again raised that it should be after working hours so that we can get better attendance
- New format for meeting put into place with a more diverse and interactive presentation.
Mr Klaas discussed and presented:
- Budget Deficit
- Acknowledged engagement is a requirement
- 1 July 2024 is the implementation date for the new valuations
- Municipality currently dealing with the objections
- R14.1 Billion to R18.4 Billion increase – there has been a decrease in the tariffs.
- The Tariff policy has to re-evaluated and adjusted in accordance with national legislation – NPRA.
- In future there will be no rebates for business tariff’s
- Residential and business tariff’s have been decreased
- 14% reduction in the residential tariff
- New category added – vacant and business have been added to the tariff lists now
- PARRA/NRF has requested that the new tariff is published as soon as possible – it will first need to be adopted by Council and it was requested that the Website needs to be updated with the information.
Ndlambe Services Tariff Study was presented:
- Consultant presented – Costing expert for Municipality (Mr Barnard)
- Presented his findings – as part of a cost of supply study
- Electricity – 16% increase:
- MFMA (Municipal Finance Management Act) requires application of cost reflective tariffs.
- NERSA requirement for electricity
- NLM is very scattered and therefore more expensive to provide services.
- He commended Ndlambe for their efforts to keep costs relatively low.
- The challenge is that the tariffs we are charged do not cover the costs to provide the services.
- Current tariff – domestic credit vs. Domestic pre-paid
- Impact of more residents having solar systems has affected the revenue.
- Ndlambe LM is buying electricity at R6.80 and selling for R1.30 therefore there is a shortfall.
- Loadshedding’s impact is significant on the tariff
- Indigents are heavily subsidised
- Equitable share is not covering the shortfall
- We await NERSA rate increase
- The impact on customers will depend on how much supply they use.
- We will move towards having excess electricity put back into the system – infrastructure and meters need to be installed. This will be applicable from 1 July 2024 but not certain that Ndlambe LM will have it all done by then. A stressed need to explain this to consumer.
Services (water, sewerage, sanitation, waste):
- Average increase proposed is 6.2% – in line with National Treasury guidelines
- This will be applied to all rates over and above any tariff structure changes.
- Water:
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Water vs. Drought rates
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Costs of sourcing water are expensive i.e. RO Plants and so forth
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Water losses are still a huge cost I.e. 10% allowed for and Ndlambe LM has a 45% water loss – a huge concern (this is leaks and illegal connections).
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Connection costs, supply, purification, production, administrative costs
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It is proposed that there is a 5% increase over the next 5 years
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Consideration needs to be given also to pricing for customers who use thicker pipes vs thinner pipes i.e. capacity charges
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Noted that maintenance rates are not sufficient .
- Sewerage & Sanitation:
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Proposals – increase equitable share to cover free service charges.
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Increase sewerage charges by once off 5%
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11.2 % increase for suctions
- Waste:
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9.2% increase for Environmental levy/charge
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We need to have recycling instituted
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This will reduce waste drastically and also the costs involved
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Apply current differentiated rates plus increases to the respective categories
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The consultant illustrated how electrical appliances affect the usage i.e. LED lightbulbs / Modern appliances – energy efficient solutions crucial.
General:
- Ms. Rice raised that it is there is a need for continued engagement.
- Dawie van Wyk has asked that the total cost of employees be provided – including pensions etc. This is to be provided by Mr Klaas.
- Announcer asked what is being done to reduce wastage e.g. water losses / misuse of vehicles / petrol for private use – this is to be presented by Mr Klaas. This was present in the Auditor General’s report. What measures have been done since then? Has there been an action plan put into place?
- Dr Vithi addressed that there is a team who goes out to monitor leaks and repairs
- Water meters are being installed as a priority to try and reduce water losses
- Education programs at schools to educate on water losses
- Asbestos pipes need to be replaced i.e. infrastructure upgrades are needed and have been addressed with the Minister.
- Ms Burrow (PARRA) requested feedback on state of roads – The roads within the ward cannot continue to degrade the way they are
- Dr Vithi has said that there is a struggle to get capital grants to increase and improve roads
- Technical department has been doing maintenance but its not sufficient
- Small revitalisation grant has been awarded i.e. R8 million has been granted but this is minimal but it would appear that this would be an ongoing project
- It was mentioned that Atherstone Road is due to be paved in the near future
- Grants remain challenging to acquire
- Business plans are addressed for road infrastructure
- Mr Boucher addressed and said that we are still the paradise of the Eastern Cape and commended Ndlambe LM on the state of Port Alfred in comparison to other Eastern Cape towns.
- Port Alfred needs to focus on the issues which our town is e.g. tourism infrastructure, retirement town but no private hospital
- It was suggested by Mr Boucher that Council should consider employing a legal advisor to assist them in making decisions
- We need to get our teeth into various projects around town
- Small town revitalisation
- We need to be proactive
- Mayor said we need to ensure we continually work towards funding and revitalisation
- Cllr Booysen – R11.6 million has been transferred as part of disaster relief. It is a conditional grant and has to be specifically used for each project
- Concerns about how ratepayers are going to afford these increases discussed
- Mr Klaas has said that there is not enough communication coming from Ndlambe LM – this was firmly approved.
- Spacial Development Plan:
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Erf 388 development – shopping mall to go in at Nemato. This is still a town planning issue.
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Investment task team has been put into place by the MM in the last 2 weeks to try and get development in.
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No other earmarked development at this stage.
SUMMARY OF THE INCREASES:
Electricity: + 16.5%
Sewerage: + 9.2% on connections and + 11.2% on pump outs
Water: + 11.2%
Environmental Levy: + 9.2%
Refuse: + 9.2%
