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e-mail: web@thulamela.gov.za
Address
Private Bag X5066,
Thohoyandou, 0950
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Current News
Budget Speech by the
Honourable mayor of Thulamela
Municipality Khosi Vho-T.N
Makumbane.
VENUE : THOHOYANDOU TOWN HALL
DATE : 29 MAY 2009
TIME : 14H00
Madam Speaker, Honorable Councillors, Traditional
Leaders, Officials from office of the Premier,
Officials from all other sector Departments, Council
Employees, and members of the Public, I greet you all.
During the current Financial Year our programmes were
in line with the Five Year Local Government Strategic
Agenda. This is in line with the identified Five Key
Performance Areas, namely.
- Institutional Transformation and Development
- We have succeeded in insuring that Section 57
Managers sign their performance contracts
- We have reviewed Municipal Organogram in line with
the IDP priorities
-
We have advertised a post of a Senior Manager
Community Services
I am sure a due process will follow in order to
urgently fill the vacant post
- Our Audit Committee continues to meet periodically
to assist us in Financial and Performance matters
I am sure that these processes will assist us to
improve in our Financial Management and this will
make our Financial Audit to improve as well. We will
continue to ensure that our training programmes for
Councillors, Traditional leaders and Officials is
enhanced even in the new financial year.
- Financial Viability
Over the past Financial Year we embarked ourselves on the
drive for revenue collection increase.
The following are some of the factors that contributed greatly
to the low collecting of revenue:
- The fact that we are not Electricity Authority robs
us of the tool to compel people to pay for services for fear
of being cut from electricity supply.
Customers not getting statements because of the Post Office problems.
Lack of contact details and addresses on the database, which makes it
difficult for the Credit Control Section to work properly.
Late delivery of statements due to printing and folding problems.
To deal with some of these and other challenges the following
tasks were performed:
- The use of Debt Collectors and Ward Councillors to get the
correct customer information.
The appointment of a Service Provider to print and fold statements.
The use of Interns and appointment of additional staff in the Credit
Control Section.
These are just some of the responses that we have done in relation
to the challenges that I have outlined above. We are extending the
invitation to whoever may have other and better proposals to buttress
our financial viability.
- Service Delivery and Infrastructure Development
We are aware that the National Government has set targets
for the provision at minimum standards of service, for
example Water in 2008, Sanitation in 2010, Electricity
in 2012. We have made great strides to implement the above
targets. Due to our huge backlog it will not be possible
to meet the targets for water and sanitation. Hence we are
working with Vhembe District Municipality to speed-up our
efforts to reduce the backlog.
We are also encouraged by the co-operation we are getting
from Department of Minerals and Energy to forge a partnership
on electrification programme. These efforts will go a long way
towards addressing the 2012 deadline.
We are pleased to inform you that in our present Financial Year,
we were allocated R28,205,000 through Municipal Infrastructure
Grant (MIG). Majority of which went to Roads and Streets upgrades.
We are approaching the end of the Financial Year, and our books
show that we are in line to shall have spent all the money. Many
streets were attended to. Many streets even in the villages were
upgraded and tarred. We shall continue to do so even in the new
Financial Year.
- Local Economic Development
The Nandoni Dam will continue to provide Economic
opportunities for our Local Municipality and the
District in general in the field of Agriculture and
Tourism. We also expect that the dam will now be used
for the proposed Hydropower Electricity that will go a
long way to address electricity supply in our District.
Through the partnership with Vhembe District Municipality.
Shayandima Industrial Area Streets are being renovated and
upgraded. At the end of the Project the place will be accessible
to all potential investors.
- Good Governance and Public Participation
Our Ward Committees are functional. They form part of
the developmental agenda of the Municipality. They continue
to provide feedback to all the services that we are rendering.
During the course of this Financial Year we approved the
anticorruption strategy. Consequently, we have established an
Anticorruption Committee which is chaired by an independent or
outside person. We are pleased with the work that the committee
is doing. We also want all members of the public to have access
to the Toll-free number that we have established. We remain committed
to zero tolerance on fraud and corruption.
Madam Speaker,
Over the past weeks we have seen Community Representatives
together with their Councillors having meetings of IDP/Budget
in all centres of the Municipality. The attendance in all the
meetings was very satisfactory. We have also noted the vigorous
debates in those meetings.
We may not have solved all the challenges satisfactorily,
but the engagement has helped us to have Municipal Programmes
that are indeed informed by the needs of our communities.
I am confident that Council will consider a recommendation from the
Finance Portfolio Committee which is recommending further engagements
with Community Representatives in all the centres that we have
established in the municipal area in order to discuss issues of payment
of service.
Madam Speaker,
We have reported in the previous financial year about the Neighborhood
Grant that we are the recipient of. Indeed in this financial year we are
happy to report that there is dust that is going up in all major sites.
This will go a long way to make land available for development, to help
minimize traffic congestion, to link existing nodes for development,
urban renewal, to provide community and commercial facilities. We are also
happy to inform you that as part of this programme the state of the Art Library
Construction is underway between Thohoyandou Indoor Sports Centre and Thohoyandou
Arts and Culture Centre.
Madam Speaker,
I am sure that those who have travel through Punda Maria road in the
Western-side of Hollywood Garage in Makwarela Extension 3 have seen a
major development going up. A Shopping Mall to be named Phangami Mall
is under construction. We are informed that the Mall will be opened by
October 2009. We are quite sure that the Mall will bring a positive impact
to our people. There will be employment of people by retail owners. Many people
will have access to shopping facilities without travelling long distances.
The Year 2009 was mainly characterized by the Provincial and the National
General Elections that were held on the 22nd of April 2009. We have seen long
lines of patient people waiting to cast their votes. We have seen men and women,
black and white, youths and disabled standing side by side to reach voting stations
to cast their votes. We are pleased by the peaceful atmosphere that prevailed during
election period.
It came as no surprise when the International Organizations described our elections
as credible, transparent, free and fair.
We would like to use this opportunity to congratulate the African National Congress
for having won the elections convincingly. The people have spoken. The people have
given the ANC another five year mandate to govern the country.
We are also excited by the changes that the new Administration has introduced with
regard to Departments. We are happy that the new arrangements are responsive to the
needs of our people.
Madam Speaker,
Councillors will also remember that we have lost a fellow Councillor
in March 2009 by the name of Councillor Nthudzeni Robert Ndou. It was a
sad moment indeed for all of us including the family. This sad moment has
forced us to have by-elections for Ward 2. The Independent Electoral
Commission decided that the by-elections be held on 6 May 2009. This made
us not to rest after April 22 general elections. Political Parties were soon
engaged again in campaigns in Ward 2. On the evening of April 6 2009 it was
confirmed that the ANC candidate, Mr. Ndevane Tshilidzi was the winner of the
by-elections with 93%. This clearly demonstrates that people are still confident
in the ruling party. We congratulate Mr. Ndevane for being elected as the next
Councillor for Ward 2. We are quite sure that he will carry on what the late
Councillor Ndou had initiated in that Ward. Welcome Hon. Cllr. Ndevane, working
together, we will do more.
Madam Speaker,
As we all know that the New Property Rates Tax is supposed to be implemented
with effect from 1 July 2009. Our public consultation that started last year will
continue to take place until the whole process is complete. Due to financial constraints
we could not do the valuation process for every inch of the soil of this Municipal Area.
We hope to complete the whole process in due course.
Madam Speaker,
As part of our inherent tradition in coming up with innovative ideas, this Municipality
decided to invite the Minister of DME for the launching of one of the Electrification
Projects in one of the most remote areas.
Vhutalu village is part of Thulamela, one of the areas that are said to be inaccessible.
Majority of people living within this village are dependant on what they produce
themselves from minute Crop Farming but yet they felt compelled to partner with the
Municipality.
This is one of those relationships that touched the hearts of many ministries including
the ministry of Minerals and Energy. As part of the Municipality’s briefing during the
Minister’s visit, we displayed the collective capacity of ourselves with Eskom in fast
tracking the electrification of our villages.
The Minister having realized that Thulamela does not have a license to reticulate electricity,
but remaining in the fore front in processing this service to its inhabitants without deriving
any benefit from all these massive investments, the Minister in observing these efforts, made
the following commitments.
- The establishment of an integrated energy centre
- To allow Thulamela Municipality to champion the piloting in renewable energy.
- The establishment of a Hydropower Station at Nandoni Dam in recognition of the abundance
of water resource out of Nandoni Dam and
- Lastly, for the initial R30m commitment towards realizing the 2012 universal access to
electricity by all South African Households.
It is on this background that Thulamela Municipality will this single Financial Year electrify
3000 households.
The importance of the establishment of the Hydropower Station is huge. Our view as a Municipality
and as part of our tradition to always think of innovative ideas to fast tract service delivery to
all and to assist our people in improving their economic standard, the Hydropower Station will
assist in many ways.
It will augment the energy capacity pooling from Eskom.
As the Municipality we are prepared to surrender our allocated power by Eskom to the surrounding
Municipalities such as Makhado & Mutale because we will be able to provide the whole of Thulamela.
As a Municipality, partnering with DME & Service Providers a sizeable progress has already been made.
The possibility is the Hydropower Station will be functional by 2010.
The following are units that will be electrified at a cost of R30m through the DME Grant during the
Financial Year 2009/10:
| VILLAGE |
UNIT |
PROJECT COST |
| Tshikunda |
40 |
R 400,000 |
| Tshamutavha |
40 |
R 400,000 |
| Murangoni |
240 |
R2,400,000 |
| Khumbe Zone 5 |
73 |
R 730,000 |
| Tshirenzheni |
114 |
R1,140,000 |
| Maphophe |
81 |
R 810,000 |
| Tshilungwi |
160 |
R1,600,000 |
| Vondwe Doyoyo |
82 |
R 820,000 |
| Vondwe Block 5 |
88 |
R 880,000 |
| Lukau |
100 |
R1,000,000 |
| Ngwenani |
325 |
R3,250,000 |
| Mpandoni |
51 |
R 510,000 |
| Duvhuledza |
149 |
R1,490,000 |
| Tshivhungululu |
84 |
R 840,000 |
| Josefa |
300 |
R3,000,000 |
| Mvelaphanda |
630 |
R6,300,000 |
| Mangondi |
332 |
R3,320,000 |
| Mavhola |
23 |
R 230,000 |
| Makonde -Jim Masindi Tshituni |
22 |
R 220,000 |
| Muhotoni |
66 |
R 660,000 |
|
TOTAL |
3000 |
R30,000,000 |
Madam Speaker,
As 2010 Legacy projects, FNB has funded the laying of the artificial
turf to Makwarela Stadium. It is the only facility of this kind in the
Province. A great achievement indeed.
Madam Speaker,
Who of us ever thought of seeing live games broadcasting from
Tshifulanani Stadium? The completion of Tshifulanani Stadium is
a milestone to the residents of Tshifulanani village. The benefits
that come with this Project is that small businesses especially the
hawkers are now able to derive income on weekly basis from the sales
of their goods.
Madam Speaker,
Malamulele Boxing Gym has been completed at a cost of R12.m and we
are now planning for its official opening. The gym is of International
Standard. The Minister of Sports and Recreation will officially open this
facility soon. The facility is strategically placed and we are convinced that
we will produce more champions.
Madam Speaker,
According to Economists, two consecutive quarters of negative growth means an
economy is technically in recession. South Africa has lurched into a recession
for the first time in 17 years. Gross Domestic Product (GDP) – a measure of the
total value of goods produced and services provided in a country in one year –
for the first quarter of 2009 the economy tumbled by an analyzed 6,4% after declining
1,8% in the final quarter of 2008.
The contraction in growth had been blamed in the slump in export demand due to the
worldwide credit crunch. This had forced manufactures and miners to cut production.
In an effort to fight off a prolonged recession, the South African Reserve Bank had
already cut rates four times since December 2008 by a cumulative 350 basis points.
Madam Speaker,
Our Municipality was not spared from global recessionary effects. As a result of the
effects of this economic down-turn this Municipality was during the course of the year
compelled to adjust (reduce) the 2008/09 budget. The 2009/10 budget has as a result also
been drastically reduced.
An amount of R18m will during the 2009/10 Financial Year be spent on the construction
of Lufule/Tshikweta/Mavhunda access road. Of this amount R12m will be coming from Municipal
Infrastructure Grant (MIG) while this Municipality will provide a counter funding of R6m.
Construction of Maniini Ring Road will receive a total amount R13m, of which R10.7m will come
from MIG and the balance of R2.3m will be funded by this Municipality.
Constructing Tshifudi Sports Facility will be done at R10m MIG providing R9.2m and R800,000
counter funded by Thulamela Municipality.
Five Solid Waste Transfer Stations to be constructed at Makonde, Tshitereke, Saselamani,
Mulenzhe and Tshikombani villages will receive R4.2m, of which MIG will provide R3.75m and
counter funded at R450,000
Madam Speaker, Traditional Leaders, Honorable Councillors and members of the Public the
total budget for the Financial Year 2009/10 is R372,875,544 categorized and summarized as
set-out hereunder.
BUDGET SUMMARY 2009/2010
OPERATING BUDGET SUMMARY BY CATEGORY
| REVENUE |
|
| Assessment rates |
7,500,000 |
| General levy |
20,500,000 |
| Equitable Share |
158,199,000 |
| MIG Grant |
45,507,000 |
| Financial Management Grant |
750,000 |
| Municipal System Improvement Grant |
735,000 |
| Grant VDM |
35,034,304 |
| Electricity Grant |
37,230,000 |
| Neighbourhood Development Partnership Grant |
3,000,000 |
| Free Basic Services Grant (Water) |
6,181,883 |
| Other Income
|
58,238,357 |
| TOTAL INCOME |
372,875,544 |
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| EXPENDITURE |
|
| Operating Expenditure |
|
| Salaries and Wages |
107,388,370 |
| Councillors Allowances |
19,345,657 |
| General Expenditure |
56,567,900 |
| Repairs and Maintance |
27,575,000 |
| Non- Cash Item |
5,700,917 |
| Contribution |
1,000,000 |
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TOTAL OPERATING BUDGET |
217,577,844 |
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CAPITAL BUDGET SUMMARY BY VOTES |
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| Corporate |
900,000 |
| Municipal Manager |
300,000 |
| Building |
1,450,000 |
| Roads and Storm water |
50,330,000 |
| Council General Expenses |
37,230,000 |
| Public Safety |
1,880,000 |
| Financial Services |
2,406,700 |
| Sports and Recreation |
24,875,000 |
| Planning and Development |
22,204,000 |
| Health and Waste Management |
12,222,000 |
| Water |
1,500,000 |
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| TOTAL CAPITAL BUDGET |
155,297,700 |
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TOTAL BUDGET |
372,875,544 |
Madam Speaker,
Please allow me to table before you a brief overview of the 2009/10
budget estimate.
Capital Budget
The total Capital Budget for the 2009/10 is R155,297,700 which is a
decrease by 37% to the amount that was budgeted for in the 2008/09
Financial Year.
Operational Budget
The total Operational Budget for 2009/10 Financial Year is R217,577,844 a
decrease by 2% to what was budgeted for in the previous Financial Year.
Madam Speaker,
I feel greatly honoured to be able to present before you the 2009/10 budget
estimates for consideration and adoption by this budget meeting of today the
29 May 2009.
Thank you
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