On 22 May 2024 representatives from PARRA and NRF attended a meeting with Ndlambe Municipality to discuss the draft budget. Here are the notes made by our Deputy Chairman, Mr Dawie van Wyk:
Note for the record Port Alfred and Ndlambe Ratepayers 2024-25
Budget Questions
22 May 2024
Present: Ndlambe LM: Diane May, U Xako, S Babama and R Uren
Ratepayers: D van Wyk, J De Wit, R Schenk, Jan Smit, B Venter and Ren Mouton
1. Liquidity Ratios:
The table was incorrectly populated and will be redistributed.
2. Catering:
The excessive amount of nearly R 2 million is not Ndlambe’s core business of providing services to the ratepayers and must be curbed. Ratepayers want their money spent on providing services not on frivolous items like catering and food.
3. Total debt:
Masakhane Report R 264 911 503.67 yet only R34 398 004.00 is being written off in 2024-5. Ndlambe is taking active steps to identify the debt and see what can be recovered and what has to be written off. Analyse the debt: for example: who is not paying – business or residential?
Formulate a strategy to Reduce the debt / or Improve collection. Alienation of the land might not work as a strategy given that property in question is a primary property. (not a secondary property). It also appears that for most people not paying are genuinely not able to afford to pay.
A large percentage of the debt is “inherited” from the long-gone amalgamation process – the impact of which still haunts us.
Unpack the debt recovery strategy sufficiently enough so that it is very clear exactly what needs to be done to improve the situation. For example, who owes what? How will we recover it? Who is be recovering the outstanding amounts? How will it be monitored? How will it be reported back to the Ratepayer’s Associations
4. Wage Bill:
Unathi Xako will hold a session with Ren Mouton/Dawie van Wyk to explain the discrepancy in the calculations. The ratepayers had previously asked for a “cost per employee to Ndlambe LM” but have to date not received an answer.
5. Cash donations:
This amounts to R R2 090 004 and an increase of 41% compared to 2023. This needs to be investigated. Again these activities are social activities and not Ndlambe’s core business of providing service delivery. Departments should rather go to the Region, Province or National Government to raise funds for these non-core activities.
6. Consultants:
The Treasury has indicated that consultants should be not used excessively. Ndlambe consultants costs went up by 69% from R20 409 888.00 to R34 398 004.00 (2024-5 budget). This was noted.
7. Bonuses:
This will be covered under item 6 when investigated.
8. Allowances:
Again this will be covered in item 6 when investigated.
9. Comparison: 2023/4 to 2024/5
Cash Donations and Local Artists and Performers showed massive increases. These activities must not be funded from the ratepayer’s contributions but rather from their respective Departments in the Region, Province or National Government.
10. Tariff Increases:
Due to the under recovery and lack of capital to fix the infrastructure Ndlambe’s Tariffs for 2024-25 have increased significantly. The appointed Service Provider explained the breakdown of these tariffs at the various Imbizos held. Six percent was inflation and the balance was to cover all operational expenses and to recoup money lost by Ndlambe LM through providing services at a cost that was lower than the actual costs to the Municipality.
Sewage 9.2%
Pump outs 11,2%
Refuse 11, 2%
Environmental levy 9,2%
11. Rates are going to decrease by 14% to 0.011 cents in the Rand from 0.0125 (includes 10% rebate):
This is largely due to the increase in the value of all properties in the New Valuation roll by a significant amount. The 10% rebate is now included in the rate charged reducing the current rate of 0.139 to 0.0125.
The Objections should all be finalised by the Valuator before the of May 2024 and communicated to the relevant objectors will be sent as soon a the data had been captured.
12. BRAGG Questions:
Input questions from BRAG (Jacque de Wit) after their Imbizo at Bushman’s River: The list of BRAG’s questions and Ndlambe’s responses was tabled.
Clarity was reached after discussion on the projected rate of bad debts budgeted for and the unaffordable tariff increases to the pensioners.
13. Items in the budget that needed comment:
a. Survey 500 000.00
b. Youth Day Donations 100 000.00
c. Public Entertainment 90 000.00
d. Radio programmes 129 800.00
e. Artists and performers 750 000.00
Ratepayers want their money spent on providing service delivery and not on non-core items like those listed above.
General discussions were also held about the apparent low productivity and the wasting of resources when doing maintenance:
14. Productivity:
Discussions on the low productivity of Ndlambe Workers: The Municipality must start speaking to staff about productivity, about effectiveness and efficiencies. How to optimise resources, time, material and money. Work needs to be supervised – not just left to the people on the ground. There has to be oversight and accountability for work done vs time spent. According to the rate payers there are just too many municipal officials who are not working efficiently.
15. Financial Plan:
The financial plan should spell out precisely:
• What we plan to do to reduce municipal debt.
• What we plan to do to recover outstanding debt.
• What we plan to do to increase revenue collection.
• What we plan to do to reduce the writing off of bad debt.
• What we plan to do to ensure that the salary or wage bill does not exceed the 32% cap as per the MFMA.
16. Maintenance Plan: (that will accompany the maintenance budget).
The plan should cover maintenance of all municipal services rendered.
• What maintenance will be done exactly where, when and the cost thereof?
• Outline what approaches need to be taken for each maintenance intervention.
