Ratepayers challenge municipality

May 26, 2008

Zululand OBSERVER

	Ratepayers challenge municipality Dalena van Jaarsveld UMLALAZI ratepayers are up in arms about a proposed 6.1% rates increase, claiming breach of faith on the part of the uMlalazi Municipality who promised relief this year when motivating for the massive increases in the 2007/2008 financial year. Average rate increases last year came to 106% for Mtunzini and 52% for eShowe, while Gingindlovu was allocated a 32% decrease. At the time the municipal management blamed national government for the state of affairs because of a R4-million equitable share reduction. Ratepayers grudgingly accepted this with the expectation that the situation would be normalised during the 2008/2009 financial year. But the Mtunzini Ratepayers' Association (MRA), who conducted a detailed analysis of the proposed budget, has fired a letter to the Municipal Manager requesting some explanation. The five-page document questions why the R4-million equitable share increase for the new financial year is to be utilised for purposes not including direct relief to uMlalazi's 'already beleaguered ratepayers' as was done in the past. The MRA says only R1.9-million of the equitable share has been allocated to rates relief, but that amount has been absorbed for the creation of new posts and related costs. Should that amount be applied to help the overtaxed ratepayers, a decrease of 6% instead of the 6.1% increase would be possible. Application of the full R4-million government grant could translate to a 16% rates decrease. Allocations questioned While the Association states that it accepts the principle of cross-subsidisation of poor rural areas within the municipal boundaries, budget allocations relating to various projects are questioned, including: • R2-million on rural roads and causeways - a responsibility still with the KZN government's Department of Transport; • R400 000 for rural education enhancement which is not a core function of a municipality, but the Department of Education; • Amounts of R1.4-million and R400 000 for rural fire tender and disaster relief staff which should be the responsibility of the District Municipality – or at least some contribution by them; • R4.5-million 'top up' for the Sunnydale Housing project, considering that housing provision and funding is the responsibility of the provincial Department of Housing. According to the MRA's letter, future income escalation should also be taken into consideration to ensure balanced longer-term planning. The 180 units at the eShowe Golf Estate and 600 units at the Zini River Estate development will eventually boost the annual income by R8.3-million, while the phasing in of farms as rate-paying entities will eventually provide an additional R3.3-million per annum. Municipal manager Chris Gerber on Friday confirmed that the municipality had received the MRA letter, but said that the municipality would only comment once it had been tabled at Wednesday's Council meeting.