The rates in Beaufort West have gone up by 700-800% because of the new rating of farms.  There is, however, a provision in law that the minister can put a cap on increases and Louis Reynolds wants to know if anyone can assist him how they go about approaching the minister for help on this subject.

St Francis Bay Residents Association is an apolitical organization. It was founded during the 70’s when St Francis Bay was still autonomous and not part of the Kouga Municipality. Since being incorporated into the Kouga Municipal area in 2000, service delivery has deteriorated at an escalating rate to the point where the town is looking decidedly run down. To add insult to injury we have recently experienced large increases in Rates and Taxes that are based an inflated Valuations Role and an extravagant inflated Municipal Budget. The Kouga Municipal area includes the towns of St Francis Bay, Cape St Francis, Oyster Bay, Humansdorp, Jeffreys Bay, Paradise Beach and Aston Bay.

St Francis Bay Residents Association decided to join the National Taxpayers Union, as we are not happy with the way in which our Municipal Officials and Mayor are dismissive of the concerns of ratepayers and mismanage funds. We are in need of legal and other advice on numerous issues. Our intension as an organization is to ensure that ratepayer’s money is used effectively to improve service delivery to all the communities within our area.

All the towns within the Kouga area are members of the Federation of Kouga Ratepayers and Residents Associations (FEKRRA). This body communicates with the Kouga Municipality on issues of mutual interest or concern.  The chairman of FEKKRA is Joe Oosthuizen.

Outshoorn is effectively operating without a local government as many of the elected and appointed officials have been fired for theft or corruption.  The residents of the town are waiting to have the municipality placed under administration.

T.R.I.F.

(Tulbagh Ratepayers & Inwoners Forum)

C/O P.O. Box 339

Tulbagh

6820

Chairman: Niël de Jager

Contact No: (023 230 0233 / 083 522 8666)

15 May 2009

Witzenberg Municipality

ATTENTION: THE MUNICIPAL MANAGER AND MANAGER FINANCIAL ADMINISTRATION

Dear David

Re: Draft Budget

Herewith the comments of T.R.I.F. regarding the above. We have raised a few points for your consideration, but wish to stress the comments regarding salary increases for councillors and senior staff.

When we look at the increases being put forward for the general staff of 11 – 16% and in excess of 16% for senior staff, one wonders;

a) How these increases are justified

b) Where the money will keep coming from in the future, especially as provision has already been made for the next two budget years of 11% and 10% respectively.

We also wish to enquire as to how these increases are warranted in the current very subdued economic situation. In addition o that, the Mayor spoke at the presentation on the 8^th May, 2009 about relief for the poor, but gave no details of what this would be.

We, the whole country, are supposed to be trying to close the gap between the, so called “rich” and “poor”, but with such extravagant salary increases, it appears the problem is being aggravated, or is it only the private sector who has to bear this burden?

Finally, one more point to bear in mind, is the fact that many of the taxpayers of the Witzenberg area have not received salary increases and many have even lost their jobs. I wonder what they will think of this situation? The people out there have to battle to cut costs in order to pay taxes and services, while others live in luxury.

We, the members of T.R.I.F. have given our support in the past and will continue to do so, as long as we see results, something that is not obvious at present.

We trust these comments will be considered in the same constructive way in which they have been put together.

Regards

Niel de Jager

Chairman T.R.I.F.

Dear Mr Kelder,

My questions to you are the following – if you are not in a position to answer them, please forward this email to whoever is in a position to answer them :

Cape Town – population 3,497,097
Total packages :
MM R1,603,619
CFO R1,291,826

George – population 135,409
MM R987,000
CFO R832,000
Mayor R610,000

Knysna – population 51,468
MM R1,321,000
CFO R1,153,000
Mayor R605,000
Deputy Mayor R487,000
Exec Committee Member 1 R458,000
Exec Committee Member 2 R456,000
Speaker R484,000
16 Councillors R2,048,000 (R128,000 each)
Director Community Services R865,000
Director Corporate Services R991,000
Director Planning& Devt R991,000
Director Technical Services R1,253,000
Director Strategic Services R991,000

1. According to the budgets the salaries of the Directors and top brass are in excess of George other than the mayor. But, George population at 2,63 times Knysna and thus size of job surely says that Knysna people are grossly overpaid ?. Everyone tells me that there is nothing we can do about these budgeted salaries as they can be approved without our input (who sets these massive salaries, and is there nothing we can do to have them reduced ???) Julle maak beswaar teen die oormatige salarisse en dien die beswaar by die munisipaliteit in. In terme van art 22 & 23 van die MFMA moet julle besware/insette op ‘n volle raadsvergadering bespreek word. As hulle dit doen is jy “ge-snoeker”. As hulle dit nie doen nie tree art 26 in werking !

2. Our Ratepayer Association almost disintegrated due to lack of interest in the town. I think the people felt that it had no relevance and the complaints made by it were fobbed off by the top brass. People have been much too complacent ! Due to my highly contentious letter, the town is fired up and want blood !!. (We hear that the mayor was escorted out of the “coloured area” meeting due to an angry and mainly COPE audience). We have a meeting scheduled for Thursday 28th May in Knysna town to try to get more town support for the RA and to give feedback on the budget. THE POINT HERE IS that yes, our resurrected RA has voiced objections to the budget and has received a reply of sorts. Not good enough !! Increased salaries include 11% increase for fixed packages – but from a massively skewed and high base !!!. Who set these massive salaries – are they not accountable ??. On Friday there is a council meeting to “consider” the budget.
Make 100% sure that your inputs have been discussed at this meeting. Make sure that you are there to listen and observe.
3. The budget contains R857,000 in “performance bonuses”. No one in the town feels that there has been anywhere near “outstanding” performance, and according to the 1/2 Yearly Audit Committee report there were 8 items of shortcomings in MSA (Municipal Services Act ??). The report says clearly that the main purpose of the PMS (Performance Management System) is NOT to provide bonuses for top officials, but rather to ensure the achievement of service delivery objectives. Top management should therefore ONLY be rewarded for “outstanding performance”. The report further says that NO bonuses can legally be awarded and paid PRIOR to the adoption of the PMS. Bonuses are dependent on the evaluation of performance against performance targets, which are based on those set for the municipality, which cannot be set prior to the PMS being adopted. The report claims the targets were “soft”, the public was not made aware of its rights to participate in the setting of KPI’s (key performance indicators) and performance targets. Council approved the recommended bonuses without the benefit of the Municipal Performance Report, the Audit Committee Report on Performance Management or the Auditor Generals Report on Performance Management. The council could not have taken AFFORDABILITY into account as it did not have the Annual Report. It is clear that we cannot afford these bonuses as is clearly reflected in the underbudgetting for essential repairs and maintenance. Study the provisions of the MFMA relating to performance bonuses carefully.

4. Entertainment and functions – under current economic conditions, the excessive wining and dining of top executives out of OUR funds is considered totally UNJUST. While they say there is no money, they have money to blow on food and drink at functions. And they want R800,000 on capital expenditure for for “executive and council”.

The main intention of this request is for you to advise me “what can be done to halt or reduce these massive salaries”, “terminate performance bonuses” until such time as proper evaluation takes place, targets are not soft, and the bonus is a REWARD for “excellent and outstanding performance” AND the town can AFFORD them ? See above. Refer also to circular 48 from the Dept of Finance which we circulated earlier.

One wonders why unions want 20% increases in the light of the skewed and excessive salaries that the bosses get. One manager asked me why his boss (a “Director”) gets R500,000 more per annum than he does – and he does the work !!!.
“No provision has been made for resealing of roads for 2009/2010. R10-R16 million was required over 2 years to catch up with resealing plans. Roads that cannot be maintained will return to gravel roads”. Add this point to your inputs into the budget.

Jaap, it may look like ours is a well run town and we are no-where near the total breakdown of other towns you are trying to help. We don’t want to get to that level of town where there is a breakdown of infrastructure. Prevention is better than curing ! There is absolutely no reason why residents should wait unitil everything has collapsed. A stitch in time saves nine !

Yours faithfully

Ian Stewart
Accountant
ian@outfin.co.za
Tel / fax 044 3826039
Knysna

Have objected to their municipal budget.

• As a result of a meeting with the municipality, the RA managed to eliminate over-charging on the water accounts.
• The Calitsdorp RA has objected strongly to the considered purchase of a luxury car for the mayor.  Not only has this expense not been budgeted for, but it is considered an unnecessary expense agains the background of economic hardship that many of the town’s residents endure.