The municipal manager Johan Leibbrandt reacts to criticism over the proposed 2022-’23 budget:
Drakenstein Municipality is well aware that the tabling of proposed municipal tariffs sparks public debate and media coverage, and so it should be.
However, the debate and coverage should be fair and factually based. To say that the municipality’s rates and tariffs are excessive, is simply irresponsible and untrue.
The facts tell a very different story.
A recent independent study by the Western Cape Government confirmed that Drakenstein Municipality’s property rates, and its water and sanitation tariffs are of the lowest in the Western Cape.
The study compared all 25 Western Cape municipalities’ rates for a residential property with a market value of approximately R2 million in 2021-’22. It revealed that Drakenstein Municipality’s rates are of the lowest in the province.
Most municipalities whose rates are currently lower than Drakenstein’s, must still update their property valuation rolls, which will cause their rates to increase. Drakenstein already updated its valuation roll last year; therefore our property owners will not have to prepare for any further steep increases.
The same study compared water and sanitation costs for Western Cape households with a monthly water consumption averaging between 10 and 100 kilolitres. In the majority of these kilolitre categories (70%), the study ranked Drakenstein Municipality’s water and sanitation tariffs the lowest in the province.
It is important to keep in mind that the inflation figure for local government is higher than the normal consumer inflation rate (CPI) of approximately 5%, because many of the services that municipalities deliver, necessitate us to procure fuel, of which the price has increased drastically. The municipality also pays more for bulk electricity and bulk water, and the material and goods required to do maintenance and deliver services are also much more expensive.
The true inflation figure for local government is approximately 9,5%, which is also the figure that municipalities should increase their rates by to remain financially sustainable. This is what happens elsewhere in the country, where we see proposed increases of up to 11%.
Drakenstein will however not increase its services to match the local government inflation rate of 9,5%. Our property rates will increase with 0%, water and sanitation with 6,9% and refuse removal with 7,5%.
Eskom had applied to Nersa to raise electricity bills by a massive 20,5%. Drakenstein was one of the municipalities that lodged a formal objection against this application. We were successful. Nersa approved an Eskom increase of 8,61%, which is in our view still too high.
While this means that the municipality will have to pay Eskom 8,61% more for bulk electricity this year, we will increase electricity for our residents with 7,71% (subject to Nersa’s approval).
In spite of all this, Drakenstein is one of the municipalities that render the highest percentage of relief to our poor residents. That is while the municipality is burdened with one of the highest number of poor and unemployed residents: 57%.
We do all of this to assist our ratepayers, as we know Covid-19 and the sharp rise in the fuel price are affecting people’s pockets.
We encourage our ratepayers to give their inputs with regard to our Draft IDP (Integrated Development Plan) and Draft Budget at our IDP Open Days; email idp@drakenstein.gov.za; or write to the Office of the City Manager, Drakenstein Municipality, PO Box 1, Paarl, 7620, before 29 April.
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Also read letter on page 10 from the Drakenstein Community Forum.
