Q&A with municipality following open letter to Mayor

HESSEQUA NEWS - Following an open letter from Heidelberg resident Alexander Panzek to Hessequa Municipality Executive Mayor Grant Riddles, South Cape Forum posed eight (8) questions to the mayor and Didi Budricks, head of PR, admin and auxiliary services at the municipality.

Here is the complete Q&A. A shortened version appears in this week’s paper.

Q1: Why do you choose not to respond to Mr Panzek’s open letters in public? Is it because of the style in which the letters are written?

An official meeting has been scheduled between Mr Panzek and Administration for Monday, 8 April 2024 at 10:00 where this issue will be addressed. [The municipality has informed South Cape Forum that it is a closed meeting and that South Cape forum will not be able to attend. Ed]

Q2: Despite objections to last year's 21-32amp prepaid electricity levy, it was voted in by council. Please justify the levy.

The levy introduced was coupled with a reduction in the purchasing tariff of electricity. The basic charge levy is required to maintain electricity infrastructure on an ongoing basis for availability of electricity irrespective of consumption levels.

Q3: Mr Panzek states: “There was also plenty of objections from residents and organisations to the 15% refuse increases in 2018/19, 2019/20, 2020/21, almost doubling our refuse charges in only 3 years, ignored by the mayor and his council voting for these and other ridiculous increases.” Can you please explain and justify the increases?

The municipality responded to all the formal objections lodged on the refuse tariff increases in the respective years. In summary the refuse removal trading service was operating at a deficit and we were not recovering all the costs being incurred from the tariff levied which justified the increases.

Q4: Mr Panzek states that Speaker, Mr Andrew Stroebel has acknowledged that electricity increases should also be 'inflation rate based'. Were the increases not inflation rate based in the past? What is the practical implications of this acknowledgement?

The electricity increases are not decided at a local Council level, but rather by the National Energy Regulator of South Africa (NERSA) and communicated to municipalities. The percentage increases that are above inflation have been imposed on municipalities based on applications made to NERSA by ESKOM supported by various projects and maintenance requirements to stabilise the national electricity grid. The acknowledgement must therefore not be taken out of context.

Q5: It is no secret that most people are suffering and cannot make ends meet. Will council consider lowering the minimum income to ensure that more residents and pensioners qualify for lower electricity rates and other basic services?

We have proposed this year that we increase the Indigent Qualifying household by 2.22% in addition to the two state pension limit. This was done even though the National treasury reduced our Equitable Share grant that funds Indigent Programme by almost R1 million or 1.34%

Q6: Will residents in general see some relief with lower municipal rates in future?

The municipality is not exempt from Inflation and other economic factors as it procures goods and services from the open market, it is therefore almost impossible to keep rates the same or lower it.

Q7: Will it be possible to cut municipal expenditure to facilitate this?

We have already commenced with reducing our expenditure levels in categories of expenditure within our control and this was necessitated to reduce the effect of Nationally negotiated employee related costs increases as well as the portion of the Bulk Electricity increases that is not allowed to be added to consumer tariff increases. This results in a lower increase in tariffs that would ordinarily be required.

Q8 In what ways have Hessequa residents’ lives improved under your leadership?

2017/18:

First step to move away from Service Provider / Centralised Fire Fighting Service
76% of capital expenditure just on basic services(Water, Sanitation, Electricity, Waste & Roads/Stormwater)
Successful housing project delivery (170 Units) – R11M grant spent successfully
Various Development Initiatives: LED & Tourism

2018/19:

Procurement of Fire Fighting Infrastructure to decentralise service to towns
77% of capital expenditure just on basic services(Water, Sanitation, Electricity, Waste & Roads/Stormwater)
Committed R6M for upgrading of sports fields
Completion of Witsand Desalinisation Plant to augment existing sources
Support to public transport institutions (Hessequa Taxi Association)
First in Southern Cape to implement Auto Number Plate Recognition
Approval of Housing Projects / Serviced sites for Melkhoutfontein Expansion, Heidelberg Site 4, “Dollar Square”, Eikeweg Informal Settlement, Thembani Street Informal Settlement Riversdale
Data cleansing project for housing beneficiaries
Implementation of Card Payment facilities

2019/20:

Mobile Thusong programme reaching new record of 2469 beneficiaries
Opening of more e-centres at Hessequa Libraries serving 19 797 beneficiaries in 2019/2020 FY
Implementing major service delivery measures during COVID-19
No service interruptions during pandemic
Major review of municipal resorts & review efficiencies to support possible privatisation of some resorts
83% of capital expenditure just on basic services(Water, Sanitation, Electricity, Waste & Roads/Stormwater)
Blue Flag status for all Beaches, first municipality in Country.
Decentralised firefighting service established

2020/21

Further expansion of e-Centres in Hessequa due to good governance
Successful lobbying for, and completion of Youth Café
Approval of R120M for Housing in Hessequa
Major Covid support to needy households
Upgrading of Lukhanyo Creche
Electrification of informal households
Second year of Blue Flag status for all Beaches
82% of capital expenditure just on basic services(Water, Sanitation, Electricity, Waste & Roads/Stormwater)
Entrepreneurship Support Agreement established with banking institution to support new small businesses

2021/2022

Re-election of DA & as Executive Mayor with larger support
Approval of Slangrivier Housing Project
New Driving Range for all Driving Schools in Hessequa
Major renovations to Municipal Resorts
Approval of business plans applying for funds for the Kwanokuthula Business Hub
72% of capital expenditure just on basic services(Water, Sanitation, Electricity, Waste & Roads/Stormwater)
Responding to Community Safety concerns from the public – Expansion of Law Enforcement function

2022/23

Upgrading of sport facilities
Opening of another e-Centre
Completion of Slangrivier Consolidation Project
Appointment of Law Enforcement Officers
Expansion of Law Enforcement infrastructure
Implementation of new Client Services System
Implementation of upgraded financial system
Achievement of 10^th Unqualified Audit Result – Sign of good governance
Committing in capital budgets to investment in own Water Purification Infrastructure for Heidelberg
Governance Performance Index – Independent (Private Institution) announces Hessequa 3^rd in South Africa as small municipality and 7^th compared to all municipalities, including metros, in South Africa: https://digitalmallblobstorage.blob.core.windows.net/wp-content/2021/10/Governance_Performance_Index_ZAR_2021.pdf

The Municipality also included a list of capital and other projects, dating from 2016. Readers should be able to access the table on the Municipality’s website. Ed

Alexander Panzek.