Residents of the Makhado Municipality got a sneak peek into the 2020/21 budget for the region during Mayor Samuel Munyai's annual budget speech that was delivered on air last Thursday.
"Let me first acknowledge that we present the IDP and Budget Statement for 2020/2021 financial year under very challenging and unique circumstances. For the first time in 26 years of democracy, the nation and the world are experiencing unprecedented levels of pain and human suffering, disease, and death caused by the global outbreak of COVID-19," Munyai said.
Munyai tabled a R971,001 million operational revenue budget for 2020/21, with operational expenditure that will amount to R965,598 million. The operational expenditure includes the non-cash items, amounting to R120,089 million for depreciation and R41,135 million for assets and debt impairment. The final capital budget estimate for 2020/21 amounts to R247,179 million.
To balance the books, Munyai announced a 6,22% increase in electricity tariffs and a 4,6% increase in property rates and all other services. As for salary and wages, an overall increment rate of 6,25% was agreed upon by the bargaining council, effective from 1 July this year. The total salary bill for the coming year will total R287,567 million and, according to the municipality's calculations, this amounts to 29,78% of their total operating budget.
Some of the major changes from the tabled budget include an increase on expenditure by R46 million for RAL- and Eskom-related projects that were initially capitalised instead of being budgeted for under the expenditure budget in the tabled budget. Contracted service has also been increased by R4 million to cover the budget for residential site planning and surveying in Dzanani township.
Capital projects not completed from the municipality's own funds amounting to R35 million have also been rolled over to the 2020/2021 budget year, and other income has been adjusted down by R36 million of agency fees, taking into consideration the accrual accounting. This has been recognised in the cash-flow statement.
The total grants that are going to be received by the municipality for the 2020/21 financial years amount to R493,312 million. From National Treasury they will receive an Equitable Share of R385,034 million, while receiving R88,968 million from the Municipal Infrastructure Grant (MIG). The Financial Management Grant will be R1,7 million, while they will receive R2,270 million from the Expanded Public Works Program and R15,340 million from the Integrated National Electrification Programme (INEP).
As for the capital budget, it will be divided between the following departments: technical services (R184,954 million), community services (R12,270 million), finance (R31,129 million), corporate services (R15,311 million) and regional offices (R3,515 million).
Among the projects to benefit from the capital budget and MIG are R15,445 million for the Waterval sport facility's phase 3; R4,8 million for the fencing of the Makhado municipal cemetery; R20,546 million for phase 3 of the Valdezia, Xitacini-to-Jiweni road; R2,381 million for the Lutanandwa access road and bridge; R5 million for the Rivoni-to-Xihlobyeni access road and R2,5 million for the Sane-to-Natalie bridge.
A few projects will also be implemented during the coming financial year, with the help of the INEP grant. These include R6,7 million for the Muanandzhele feeder line over a distance of 15km; R4,6 million for Muanandzhele Phase 3 Kanana, which will benefit 450 households; and Buysdorp will get 101 household connections funded by Eskom
Some of the projects to be implemented via the municipality's own income during the next year include R6 million for the upgrading of stormwater infrastructure and the resurfacing of roads; R500 000 for the revitalization of the Burger Street market in Louis Trichardt; R10,7 million for a new council chamber and offices, R2 million for the refurbishment of the Tourism Information Centre; and R10,7 million for the construction of an admin block at the Makhado vehicle testing ground. In addition, the Rathidili incubation centre will receive R4 million and the Tshakhuma fruit market R15 million.
The municipality will also give R10 million for the rehabilitation of Dzanani streets; R3,5 million for the N1 Tourism Park, inclusive of the arts and craft centre; R6 million for the Waterval sports facility phase 3; R2,5 million for the Kutama/Sinthumule sports facility; R2 million for the proper design of the Waterval Clinic road to Waterval ring road; R2 million for the rehabilitation of Djunane street at Waterval; R1,5 million for the rehabilitation of Joe Slovo Street in Vleifontein; R1 million for ablution blocks and a changing room at the municipal workshop for standby workers; R1 million for phase 3 of the Tshikwarani-to-Zamekomste road; and R600 000 for renovations to the Dzanani Regional Office building.