Knysna Council set to double debt

KNYSNA COUNCIL SET TO DOUBLE DEBT

PROPOSED INCREASED STAFF ESTABLISHMENT TO COST RATEPAYERS R25 MILLION MORE

The Draft Municipal Budget proposes a massive increase in borrowings, from the current R35 Million to R66 Million in the 2018/2019 financial year. The significant increase in debt raises concerns that our children may be burdened with a legacy of unsustainable debt levels.

The organisational structure is currently being reviewed and the Council will be requested to approve the proposed new Micro Structure at a Special Council Meeting on 25 April 2018.

Council has already approved the new Macro Structure in which the Planning and Development Directorate has been abolished, following a recommendation from Mr. Chetty, who advised the Council that the new Macro Structure would be less expensive.

The Agenda for the meeting of 25 April includes a costing comparison between the current and proposed staff component. The savings promised by Mr. Chetty have come to naught and the proposed new staff establishment, in which the Planning Directorate has been disbanded, will cost ratepayers an additional R25 Million per annum!

Whereas the intention is to implement the new organisational structure in the 2018/2019 financial year, the additional R25 Million has not been budgeted for.

The question is how the municipality will finance the new bloated staff contingent.

Will we incur more debt or will service delivery be affected and capital expenditure be curtailed to pay for the proposed 88 new staff members?

The Agenda for the Special Council Meeting can be accessed via the following link: http://www.knysna.gov.za/…/u…/2014/10/Spec-Age-25-Apr-18.pdf