Council to incur more debt?

The Knysna council is set to double the municipality’s debt as a proposed increased staff establishment will cost ratepayers R25-million. So says the Knysna Ratepayers’ Association (KRA), which released a statement this week regarding a special council meeting where this proposal is expected to be resolved by council.

There is widespread speculation that the municipality wants to remove the director of Planning and Development, Marlene Boyce, and have thus already initiated a plan to have her removed.

According to the KRA, the draft municipal budget proposes a massive increase in borrowings, from the current R35-million to R66-million in the 2018/2019 financial year.

“The significant increase in debt raises concerns that our children may be burdened with a legacy of unsustainable debt levels,” the KRA said in the statement. “Council has already approved the new macrostructure in which the planning and development directorate has been abolished, following a recommendation from Mr Kam Chetty, (municipal manager) who advised the council that the new macrostructure would be less expensive.”

The agenda for the meeting of 25 April includes a costing comparison between the current and proposed staff component.

“The savings promised by Mr Chetty have come to nought and the proposed new staff establishment, in which the planning directorate has been disbanded, will cost ratepayers an additional R25million per annum! Whereas the intention is to implement the new organisational structure in the 2018/2019 financial year, the additional R25-million has not been budgeted for.”

According to the KRA, the question is how the municipality will finance the new bloated staff contingent.

“Will we incur more debt or will service delivery be affected and capital expenditure be curtailed to pay for the proposed 88 new staff members?”

A media enquiry sent two weeks ago to the municipality and again last week, was not responded to at the time of going to press.