DA takes Municipality to court
2009-06-25
Anne Kruger
THE Cape Supreme Court is to hear an urgent application today by the Democratic Alliance to block the planned property rate increase planned by the Drakenstein Municipality for 1 July. Former Drakenstein councillor Deetlefs du Toit (recently elected as MP) brought the application, supported by the DA and Tokkie de Beer (chairperson of the Wellington business chamber), objecting to the “misleading” way in which the Municipality advertised the proposed property rate increase at 7,5%, while actually budgeting for an increased income of 26,6% (and in other documents 20%) from this source. “This percentage increase far exceeds the percentages advertised. It cannot on any reasonable interpretation be said that either the average or the actual increase for property rates is 7,5%.” According to the application, the public notices and advertisements knowingly misrepresented the actual intention of the Municipality. The application was thus also brought against Dr Sidima Kabanyane (Drakenstein municipal manager), Drakenstein mayor Charmaine Manuel, finance councillor JT Basson and finance director Cavin Petersen in their personal capacities, as well as (in their official capacities) against the Premier of the Western Cape, the Western Cape Provincial Ministers of Local Government and Finance, and the National Minister of Finance. The application requests that the court declare the approval of the annual budget by the municipal council unlawful and that the four municipal representatives pay personally for the court action. According to the application, the municipal advertisement on tariff increases “did not accurately or even substantially convey the actual financial impact on ratepayers of the increases - the actual rate increases being in fact far higher than those advertised”. The DA also points out that public comments were ignored, and not submitted to councillors before approval of the budget on 27 May. The conduct is dubbed “illegal and reprehensible.” “The public has been completely misinformed as to the true budget,” in contravention of the provisions of the Municipal Finance Management Act, which forbids officials or councillors from providing false or misleading information. “A wilful misrepresentation has been made to the unsuspecting public who will ultimately be liable for payment of the tariffs and taxes imposed. The increases in fact approved were never advertised. “By acting in the way that they did, they have effectively avoided public response to the proposed increases, more particularly by publicly portraying them as being lower than the current inflation rate of 8,1%. “In addition the members of the municipal council were precluded from taking into account the actual response of the public to the proposals. “Accordingly, the entire process of adopting the budget was fatally flawed and the budget was illegally adopted.” Lawyer Leon van Rensburg, representing the DA, previously submitted in a letter to the Municipality that the electricity tariff increase was advertised at 25%, but that the tariff eventually approved would amount to an increase of 33%. This was because the revenue increase from property rates had been decreased from 26% (in the draft budget), to 20% in the budget finally approved, allegedly by shifting a large portion of the revenue to be raised, onto the electricity charges. The residential property rate has been fixed at 0,49c in the rand, and especially property owners in high density complexes have been affected by increased property valuations. Their property rates will increase by 30% and more. In another document submitted to court, the Residents’ Association of De Oude Renbaan retirement village in Paarl South points out in a letter to the Municipality that the property rate increase should not be more than 0,42 cents in the rand. A higher rate will severely affect residents, most of whom are retired: “This policy of increasing the tax burden of residents will have catastrophic results and is unsustainable.” The Municipality is opposing the application.
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