Knysna community irate over proposed hikes - 33% for rates, 18% for electricity

‘I think there’s huge pressure on the municipality to amend the budget,” said Knysna ward councillor Sharon Sabbagh about plans by the municipality to increase the tariffs.

The municipality tabled its 2023/2024 medium-term expenditure framework budget report for council consideration at a meeting on Friday, 31 March. While residents have until Friday, 19 May to comment on the planned increases, councillors and the business chamber are not happy and fear the increases could cause ratepayers to leave, which could increase unemployment in the municipality.

“They are exceptionally irate,” said Sabbagh to Daily Maverick ahead of the public comments closing. Sabbagh is the ward councillor for Ward 9, one of the wealthiest areas in Knysna, which she says, along with Ward 10, contributes the highest revenue from rates. The two wards include Knysna Heights, Thesen Island, the Waterfront, the CBD and the industrial area. 

Sabbagh said that while the proposed electricity price increase was 18.65%, the biggest concern was that of property rates potentially increasing by 33%, according to the Knysna Business Chamber. Sabbagh told Daily Maverick retirees in the area would battle to pay the increase, and this could lead to them laying off employees such as domestic workers.

She started an online petition opposing the increases, which has garnered more than 4,000 signatures.

The public comment period for the budget closes on Friday, 19 May, with the final budget expected to be passed before 30 June. It will come into effect on 1 July.

Western Cape Premier Alan Winde — who was born in Knysna — was in the area campaigning with Sabbagh. Winde told the Knysna-Plett Herald the increases “will have a direct impact on household income, which will affect many jobs”.

The Greater Knysna Business Chamber has objected to the increases and described them as “totally unrealistic”. In their objection, they said Knysna ratepayers had been battered by Covid-19, load shedding and high inflation.

“This budget will exacerbate business closures and increase the already high unemployment in our town,” the objection read.

On the issue of property rates specifically, the business chamber said the potential 33% increase was “not acceptable” as the area was a tourist destination with many small and informal establishments offering tourist accommodation.

“Their individual cases are very different and the municipality needs to ensure that it does not charge excessive rates that destroy the business, and diminish the accommodation that can be provided to tourists,” read the objection.

Other increases include 9% for water, 6% for refuse removal and 5.3% for sanitation.

The communications manager for the municipality, Christopher Bezuidenhout, said: “The municipality has a well-established public participation process that must take place before the budget is finalised in May. This process provides an opportunity for all members of the public to submit their comments, suggestions and objections regarding the budget. The municipality is committed to reviewing all submissions received during this process.”

He said the municipality would not engage in discussions or respond to comments about the budget through the media, “to ensure that the public participation process remains open and fair and that all feedback is considered equally”. DM