PAY YOUR RATES, URGES UMNGENI
UMngeni Municipality has started to issue section 129 notices to residents with the intention to get judgments against them as they try to recover R185 million owned to them in outstanding rates.
Mayor Chris Pappas said this was the last step before they go through the legal process where the municipality will take debtors to court.
“On receiving this section 129 notice, you should be aware that it is one of your last chances to do something to prevent legal action from the municipality.
“The notice is issued in terms of section 129 of the National Credit Act (NCA) and advises a consumer that they are in arrears of a certain amount in unpaid installment (s) at a given date.
“If the debtor does not comply with the outlined information in the letter of demand, then a summons will be issued. As a result, you will be required to defend the summons. If you do not or cannot do this, a judgment will be made against you,” said Pappas.
One of the biggest municipal creditors is Hilton with over R34 million, followed by Howick with over R24 million. Owners of vacant land owe umngeni R18 million.
Another issue draining municipal finances is electricity loss, with umngeni anticipating to lose R70 million in in 2023/2024. The majority of the losses occur in the Mpophomeni area.
Pappas said the municipality has increased its disconnection activities in an attempt to recover losses.
“This has yielded marginal gains however violence and intimidation have prevented meaningful gains. The municipality will continue to ramp up disconnection activities.
“This involves hard disconnections where cables are removed at the pole. We urge all residents to please speak to the neighbours, family and employees about electricity theft,” the mayor added.
“Out of 257 municipalities in South Africa 136 of them owe Eskom. I am pleased that we have managed municipal finances in such a way that we do not owe Eskom and are up to date with our accounts,” said Pappas.
Meanwhile, the municipality’s budget for the 2024/2025 financial year is in the draft phase and is currently out for public comment. umngeni is anticipating revenue of R619 million and expenditure of the same, with a surplus of R420 000.
Electricity will increase by 12.72%, while refuse will increase from R99 per month to R132 per month (including VAT) for domestic users.
“The municipality will increase rates by 5.6%. In addition to the 5.6% rural residential properties will receive less of a discount for living in rural areas. This is in response to the increase in services being offered in rural areas of programs that have been rolled out in rural areas thus reducing the divide between urban and rural.
“Furthermore, businesses and mining will receive less of a rebate as the municipality reduces COVID-19 adjustments from 2021. Agriculture, PBOS, and public service infrastructure receive a 75% discount on property tax,” said Pappas.