Big increases for muni managers?

Senior managers of Knysna Municipality are set to get an unexpected pay rise of up to 36%, if the draft budget for 2024/2025 financial year is approved in its present form.

The reason for the pay hike 'windfall' is that Knysna Municipality stands to be elevated from a level 3 category municipality, to a level 4 grading category by the Department of Cooperative Governance (Cogta).

Whether Knysna can afford the increases if they happen, remains a moot point.

The municipality would need to follow the "necessary processes" before any increases could be implemented and it has not done so, according to Western Cape local government MEC Anton Bredell.

An item under "High level summary detail of Employee Related Costs" in this year's draft budget, lists the "original budget" for senior management salaries for 2022/23 as about R4,577 137. The tabled 23/24 draft budget lists the senior management salaries as R7,164 047, whic is a 36% increase from the original budget.

Bredell said he was aware of Knysna's move in the budget to change its grading to grade 4, for both the upper limits for councillor remuneration and the upper limits for senior managers.

"Councillor remuneration is regulated by the national Minister of Cooperative Governance and Traditional Affairs," Bredell said. "The current applicable

Upper Limits Notice applicable to councillors was published by the minister on 18 August 2023. According to the Upper Limits Notice, municipalities are required to obtain the concurrence of the MEC for Local Government before implementing the provisions of the notice.

"Since the publication of the notice, Knysna Municipality has not sought the concurrence of my office for a change of grading."

He said based on records of the province, Knysna Municipality is still a grade 3 municipality for remuneration for councillors and senior managers.

In terms of the currently applicable Upper Limits of Total Remuneration Packages Payable to municipal managers and managers directly accountable to municipal managers, dated 14 June 2023, if a category of a municipality has changed the municipal council must apply in writing to the national minister to obtain approval, after consultation with the MEC for Local Government in the Province.

"No consultation has taken place with my office in relation to a change in category," said Bredell.

In response to an enquiry, Knysna Municipality communications manager Christopher Bezuidenhoudt said, "The municipality is currently graded as a category 3 municipality and is in the process of applying to be upgraded to a category 4 municipality. The 2024/2025 [budget] has made provision for the higher grade."