Budget time: and Knysna faces some hefty increases
KNYSNA - Knysna residents face some significant tariff increases in the proposed budget, tabled by Mayor Aubrey Tsengwa on 29 March.
The recommended tariff increases for the new financial year include: electricity (15%), water (4,9%), sanitation (4,9%) and refuse (10%)
Property and business rates will see an increase of 4,9% on all categories, said Tsengwa.
Indigent residents, senior citizens and people living with disabilities may apply for a rates rebate. A gross monthly household income of R5 500pm qualifies for a 100% rebate. These households also qualify to receive 6kl of water and 50kWh of electricity cost-free each month.
Sharon Sabbagh, the DA Ward 9 councillor, said the proposed tariff increases are concerning, particularly on the back of last year's tariff hikes, and are not conducive to the services being delivered.
Paying more for service delivery failures
"Cost containment measures are not adequately addressed. It is unacceptable to expect residents to continue to fund the proposed revenue increases, yet no clear plan is in place to address the many service delivery failures and the related wasted expenditure," Sabbagh said.
"Residents are encouraged to attend the IDP public participation meetings and make written submissions on the draft budget. This is after all, in the mayor's words, 'Have your say. Your Town. Your Budget'. I urge residents to do just this. Should any resident with financial expertise wish to be involved in a team scrutinising the budget, to prepare comprehensive written submissions, please contact me via WhatsApp on 083 775 2709 or email ssabbagh@knysna.gov.za," she said.
Tsengwa said the draft budget reflected a steadfast commitment to addressing the challenges faced by the municipality against the backdrop of a less favourable than anticipated economic outlook for our country and region.
"Despite the prevailing economic challenges, the draft budget remains committed to serving the needs of our community," Tsengwa emphasised. "It is imperative that we focus our resources where they are most needed, ensuring the continued well-being and development of the greater Knysna area."
Where the money will be going
Among the highlights in the proposed budget are:
R32,2m from the Provincial Human Settlement department has been earmarked for various housing projects within the area
The National Department of Energy has allocated R15,7m for the electrification of houses in Hlalani and upgrading the Knysna main substation
R3,2m for the establishment of fire stations in Rheenendal and Khayalethu
A R1,2m allocation through the Expanded Public Works Programme for job creation
R51,5m allocated for repairs and maintenance of municipal infrastructure assets
Waste management operational costs increased from R10m to R20,3m to address current backlogs
The total 2024/2025 municipal expenditure budget tabled is R1,315,8bn, of which capital expenditure is limited to a total of R88,8m made up of R23,3m from municipal generated funds (CRR) as well as R65,5m from grant funding. The operating expenditure budget equates to R1,227bn.
Asked whether the above figures are correct, Knysna's communications manager Christopher Bezuidenhoudt said, "This is a draft budget that must still receive stakeholder inputs, including community participation, which might lead to changes. The figure stated below is correct as presented."
The 2024/2025 tabled budget, tariffs and budget-related policies are available on the municipal website, www.knysna.gov.za. Stakeholders are invited to submit written representations regarding the 2024/2025 tabled budget to the chief financial officer via email at budget@knysna.gov.za, or in person at the Finance Directorate in Clyde Street, Knysna by 10 May.