PLETTENBERG BAY NEWS - Bitou's draft budget is currently being placed under a magnifying glass before it needs to be passed in June this year.

Following an expert analysis of the draft budget, which was published recently, the Plettenberg Bay Ratepayers Association has raised concerns that the municipality could soon find itself in a position where it is unable to fulfill its service delivery mandate.

The association's chair Peter Gaylard said Bitou's revenue collection is "spiralling into total dysfunction". "The total debtors' outstanding amount continues to increase; rates, taxes and service charges are not being collected from most of Bitou's swelling population. The municipality itself accepts that the debt is 'huge'," Gaylard said.

He said despite this, the municipality is continuously increasing operating costs to the "detriment of the cash position". "Without proper funding in a well-managed revenue stream, Bitou will soon be unable to fulfill its service delivery mandate."

Over-expenditure on non-essentials

He said the records show that there is significant over-expenditure in all non-essential expense categories, such as seminars, conferences, professional services, consultants, sponsorships and entertainment. 

"And, essential costs such as maintenance and engineering services are significantly underspent. The municipality is increasingly being used to serve those who run it, not those for whom it should be run."

The association called on the municipality to weigh their decisions as to where they allocate budget against what the poorest of the poor or just the ordinary citizen in Plett would want the municipality to do with the available money.

"For example, would somebody who earns a salary too large to qualify as indigent and who consequently has a huge outstanding debt to the municipality, and as a further consequence now pays a punitive electricity rate, think it is a wise decision to spend R800 000 on Christmas festival lights, or R195 000 on planning a history festival, or literally millions on fencing or providing a fancy car and limitless and uncontrolled use thereof to the mayor? If Mr/Mrs Plett in the street would not think it wise, you must not do it."

Gaylard said they encouraged Council not to approve the budget as is and to make the delivery of services to the residents of Bitou top priority. "Produce a service delivery-focused budget in its place," he suggested. 

Some of the association's proposals include not spending municipal funds on the Extended Public Works Programme. Gaylard explained Bitou was spending R13-million on EPWP workers, while it has only received a grant for R990 000.

"It is not sustainable. Knysna receives an EPWP grant of R1,118-million and does not subsidise beyond that."

He said Bitou is also increasing operating expenditure by R17-million over the next three years, even though its collection rate is down to 85% and its household debt continues to climb. 

"Knysna's operating expenditure is basically flat. Can Bitou's proposed budget be funded from the expected income?"

Third of budget unaccounted for

Another concern for the association is employee costs. Gaylard explained under this expenditure there is a category called "other" for an amount of R276-million. "That is a very big unspecified bucket. It is one-third of the total operating budget and it is unaccounted for. How much is being budgeted for bonuses, payment in lieu of leave, overtime, bursaries for employees, bodyguards, personal security for mayor and deputy, travel, staff parties, etc.?"

He further said the capital budget is inadequate for the regular replacement of the ageing infrastructure in its present state. "Of the water distribution budget, pipe replacement is a meagre R2-million in 2021/22 only and that is all! A rule of thumb is 6% minimum of revenue (electricity, water, etc.) should be allocated annually for maintenance/upgrade of infrastructure."

The budget for contracted services of R113-million is in excess of the National Treasury guidelines of 6%, he said, questioning the need for so many contractors and consultants.

The proposed electricity tariff increase of 17,8% is also a big concern. 

"How will the average person, let alone the poor, afford that? Knysna's electricity is increasing by 14,59%. This needs to be urgently re-evaluated." The association called upon the municipality to provide residents with reliable up-to-standard services at a cost that is sustainable in the long term, realistically priced and affordable to all. "That and nothing else must be reflected in the budget."

The Bitou Municipality failed to comment on the issues raised before going to print.

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