What projects are included in the budget?

For the first time in years, the Makhado Municipality has tabled a budget where its revenue exceeds the expenditure.

A surplus of R24 million is budgeted for the financial year 2014/15. The budgeted income totals R770 million and the operational expenditure R746 million.

These are some of the figures announced by the mayor, Cllr David Mutavhatsindi, during his State of the Municipality address on 27 June at Dzanani.

In the previous financial year, Council budgeted for a deficit of R29.5 million. In addition to that, R27 million had to be returned to the national treasury for municipal infrastructure grants that had not been spent. The mayor announced that the municipality received an allocation of R45 million more as a result of spending all its MIG (Municipal Infrastructure Grant) funding. “The R45 million has already been committed to speeding up service delivery to our communities. This means more capital projects for 2014/2015… (we) will continue to attract more funding because delivering quality services is what we can do best,” Mutavhatsindi said.

Of the R746 million budgeted expenditure, R150.9 million (20.2%) will be utilized for capital projects, nearly R17 million more than the R134 million of the 2013/14 financial year. The largest portion of just under R138.3 million (nearly 92% of the capital budget and 18.5% of the total expenditure) will understandably be used for capital projects in the technical services department. An amount of R8 million will be spent on capital projects in the community services department, R3.6 million in the corporate services department and the balance by Planning and Development and Budget and Treasury.

Many of the projects to be undertaken pertain to the civil engineering section of the technical services department. Poorly maintained streets and roads have long been a source of frustration. Streets in Tshikota, as well as Pretorius Street in Makhado (Louis Trichardt), will be upgraded to a cost of R20 million, funded by the MIG. The central business district and Ruh Street will be rehabilitated for R17.4 million. Another R12 million is budgeted for the tarring of streets in Eltivillas. An amount of R20 million will be spent on the Ledig (Industrial) road and R5 million on Robert Khoza Street. The first phases of the Magau road and the Tshivhazwaulu road to Rasivhetsela will be completed for R5 million and R4.6 million respectively. The Sereni Themba access road to the Mashamba Post Office and the bridges on that road will cost just under R14.2 million. The Mphaila bridge and access road (second phase) will be completed to the tune of R7 million and the Madzuwa bridge for R5.5 million. The Piesanghoek to Khunda road “and stormwater” will cost R5.5 million.

An amount of R3 million of MIG funds has been allocated for the new Makhado landfill site. The upgrading of the Bungeni and Vuwani sports facilities will cost R6 million and R5.4 million respectively. Six projects, including the fencing of the Waterval stadium (R350 000), will be funded out of the municipal income. The civil engineering projects total R105.8 million and the tools and equipment to be bought from municipal income total R1.23 million.

Much-needed upgrading of many electrical lines and bulk supply lines and other work in the electrical engineering section is budgeted for from municipal income to the tune of R7.4 million. Electrification in Wisgalaza and Murunwa village will be funded by the Integrated National Electrification Programme (INEP) to the value of R7 million. Electrification in the Makhado licencing areas will be funded by municipal income (R4 million). The total cost of the electrical engineering work and electrification will be R18.4 million, while the tools, equipment and materials will be R4.7 million out of municipal income. The technical services department has furthermore budgeted for vehicles to the amount of R5.57 million.

The existing landfill site on the Vondeling road just outside Makhado (Louis Trichardt) falls under the community services department and an amount of R3 million had been budgeted for its rehabilitation for 2014/15 and R1.2 million for the following financial year. This department will also upgrade and refurbish several parks and recreation facilities (R440 000) and construct and upgrade several testing stations (R500 000). Animal lovers will be relieved to hear that the municipal pound facilities will receive R530 000 for construction and upgrading. The balance of this department’s budget of R8 million (all funded by municipal income) is made up of electricity generators for the traffic stations, and other tools and equipment. 

The corporate services department will spend their budget of R3.6 million on network infrastructure and office furniture and equipment.

Compared to the bill for capital projects of R150.9 million, the total salary bill for municipal employees is R228 090 000. Add to that the remuneration of councillors of R20 675 000, and one finds that salaries total R248 765 000, which is 33,3% of the budgeted expenditure.

Date:04 July 2014

By: Linda van der Westhuizen

Linda van der Westhuizen has been with Zoutnet since 2001. She has a heart for God, people and their stories. Linda believes that every person is unique and has a special story to tell. It follows logically that human interest stories is her speciality. Linda finds working with people and their leaders in the economic, educational, spiritual and political arena very rewarding. “I have a special interest in what God is doing in our town, province and nation and what He wants us to become,” says Linda.

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