Residents blast proposed hefty 12% rates increase

SUNSHINE Coast residents have reacted angrily over plans for yet another hefty rates increase.

Proposals to increase rates at Ndlambe by 12% were given the thumbs down by more than 80 ratepayers at a meeting with mayor Sipho Tandani and municipal officials on Tuesday night.

Another major bone of contention was a proposed 10.5% increase in salaries which - when added to grants and councillor allowances - accounts for almost half of the annual R265-million budget.

Ndlambe Action Group (NAG) leader Derek Victor, who has been heading up an ongoing rates withholding campaign, slated the proposed rates increase, saying it was double the 6% government limit.

He said the 10.5% salary increase was significantly higher than the 6.5% increase for Buffalo City Metro.

Kicking off the meeting, Tandani said the fact that there had been no capital budget for the past four years was clearly evident all over Ndlambe.

"On every corner you will find a pothole. I as mayor cannot hide the potholes, just go outside and you will see them."

Tandani said a delegation would go to the Development Bank of South Africa (DBSA) next week to try and access funds.

The DBSA plan was, however, labelled crazy by resident Paul Probert.

Explaining the proposed budget - which has been tabled, but not approved - Ndlambe director of financial management Howard Dredge said R179-million of the budget came from ratepayers and consumers, while a further R90-million came from grants.

He said the numbers painted a bleak picture, especially since the government was phasing out grants which the municipality relied on to survive.

"If they fall away we will have to rely on ratepayers and consumers to make up (the difference)."

According to Dredge, improved debt collection processes to try and recoup some of the outstanding R100-million would help improve the situation.

Dredge said the 12% rates increase was not cast in stone.

He said the proposed 10.5% salary increase would in all likelihood come out at 8%, with the difference ploughed into other things.

Port Alfred Residents and Ratepayers Association leader Tim Cockbain said the proposed 12% increase was unacceptable considering the high number of rate paying pensioners in the area.

A deadline tomorrow for residents' comments was extended to 4pm on Monday afternoon.

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