I am deputy chairman of the SA Local Government Association’s Western Cape municipal finance working group. Recent media articles have warned that municipalities face numerous problems in the near future (Towns and cities in trouble, November 28). There is an urgent need to address the flaws within the current municipal model. With no plan to address unemployment through attractive economic policies that encourage deregulation, the number of indigents who are unable to pay for essential municipal services will grow. Without economic growth and employment, it has become increasingly tough to collect municipal debt, pay for bulk electricity and water or undertake essential maintenance on infrastructure. Meanwhile, the employee costs for all municipalities are projected to increase much faster (by 29.6%) than actual operating expenditure on materials, bulk purchases and so on (by 17.9%) in the three-year period from the 2016-17 to 2019-20 budget years, according to the Treasury. The co...
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