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Makhado Mayor David Mutavhatsindi, seated next to Vhavenda King Toni Mphephu Ramabulana, during the Makhado Municipality's budget speech at the Waterval Hall last Friday evening.

Name change high on budget agenda

 

Residents in the Makhado municipal area will have to absorb a 12,2% rise in electricity tariffs, but other rates will only increase by 4,8% in the year to come.

During the annual budget speech delivered by the mayor of the Makhado Municipality, Cllr David Mutavhatsindi, at Waterval last Friday, he reflected on the past year’s achievements.  He started off, however, by addressing the highly controversial issue of the name of the town, Louis Trichardt.

“There are those who always want to convince us that the renaming of our towns and public institutions cannot be a priority when there is still huge backlog in terms of service delivery,” said Mutavhatsindi. He said that these people seldom explained why they advocated for a name to be used of someone who only stayed in the area for a very short time, but objected to that of a historic leader who defied colonial rule for many years.

“… together with the National Department of Arts and Culture, we have put together a legal team that is meant to challenge how the review of the name was processed,” he said. Mutavhatsindi added that a street-renaming committee was appointed to ensure that the street names of the town “also speak to the history of the liberation of our country.”

Muthavhatsindi shifted the focus to the manner in which the Municipal Infrastructure Grant (MIG) was spent over the past year. During the 2013/14 financial year, the municipality received close to R45 million for the manner in which they succeeded in spending this money. Sadly, this grant was not fully spent during 2014/15 due to, said Mutavhatsindi, the Limpopo Road Agency that caused a delay in approving projects such as those at Chabani, Bungeni and Magau. “…but we are sure 100% expenditure will be achieved before the cut-off date and no money will be returned back or rolled over,” said Mutavhatsindi.  

For the coming year, the municipality has budgeted for a 16,1% increase in operational revenue, totalling R751,59 million. Operational expenditure is expected to rise by 9,1%, totalling R835,13 million, leaving a shortfall of just over R83,5 million. This will be funded through capital transfers, which leaves a final surplus of roughly R41 million.

A big chunk of the expenditure will go towards employee-related costs and remuneration of councillors at an incremental rate of 4.4%. The total salary bill to the amount of R264,14 million will include the budgeted positions to be filled during the new financial year.

Residents will also have to tighten their belts as electricity, property and service rates increase. Electricity rates are budgeted to increase by 12.2%, property rates by 4.8%, services by 4.8% and sundry tariffs by 4.8%.

The total budget to implement capital projects is R492,86 million. This includes money from equitable shares, various grants and integrated national electrification and public works programmes.

This money will go towards the achievement of the municipality’s seven strategic objectives, such as investment in the local economy and human capital, accessible basic infrastructure services and sound financial management and viability.

Income that the municipality generate by their own means (service fees, licences, permits and interest) are budgeted to be spent on salaries, debt impairment, finance charges, bulk purchases and other expenditure.

Mutavhatsindi indicated that grant money will help to ensure that the municipality becomes a city by 2025 and gave examples of certain projects that are already being funded. These projects include the upgrading of some streets in Tshikota (completed), tarring of roads in Eltivillas (completed), the new landfill site in Louis Trichardt (still in progress), the upgrading of Vuwani's sport facilities (in progress) and the upgrading of the road between Chavani and Bungeni (in progress).

Other projects that the municipality will implement in the coming year include: assisting in the development of the new Motor City on the corner of Rissik Street and the N1, developing tourism by means of scholarship programmes and the annual Makhado Show.

These projects will also aid the municipality, said the mayor, in remaining one of the top six of municipalities in the province that are “doing relatively well” as listed in the recent Back-to-Basics Report. “Our attainment of a clean audit will take the municipality to another level, that of excellence, and the next level will be to attain greatness,” said Mutavhatsindi.

News - Date: 03 July 2015

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Ms Elisa Tambani and Cllr Sarah Luduvhungu, photographed at the Makhado Municipality's budget speech at Waterval last Friday.

Takalani Sengani and Thompho  Maivha of Nzhelele, wearing traditional attire, entertained the guests by rendering poems during the Makhado Municipality's budget speech last Friday evening.

 

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Kaizer Nengovhela

Kaizer Nengovhela started writing stories for Limpopo Mirror in 2000. Prior to that he had a five year stint at Phala-Phala FM as sports presenter. In 2005 Kaizer received an award from the province's premier as Best Sports Presenter. The same year he was also nominated as Best Sports Reporter by the Makhado Municipality. Kaizer was awarded the Mathatha Tsedu award in 2014.

Email: [email protected]

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