The PoKZN argued that it required additional funding because, if the first tranche was to be used to pay outstanding amounts, the remaining balance for the 2010/11 financial year will be R39 million which is too little compared to the budget required. The PoKZN reported that a number of municipalities had not been apportioned rate payments due to insufficient funding. However, the PoKZN added that all (except for two) municipalities were billing the PoKZN. The PoKZN stressed that, without additional funding, it will not be able to fulfil its mandatory obligations.