Makhado capital budget is conservative, but optimistic

Capital expenditure of the Makhado Municipality is expected to be in excess of R183 million in the next 12 months, with most of the money going towards extending and maintaining the electrical infrastructure. Council also wants to finish several other projects, however, in the next financial year.

Two weeks ago, the mayor of Makhado Municipality, Cllr Shonisani Sinyosi, presented the 2018/19 budget during her State of the Municipality address held at Ha-Mutsha. The fairly conservative budget held few surprises and only a moderate increase in tariffs was announced. Operating expenditure had also been trimmed down. As usual, the proposed capital expenditure drew most of the attention.

Sinyosi emphasised Council’s commitment to fiscal prudence “that reduces unauthorised, irregular, fruitless and wasteful expenditure.” In general, the budget was set up in a conservative manner, realising that municipal revenue and cash flows are expected to remain under pressure in the 2018/19 financial year.

Sources of Income

The budget, in line with National Treasury regulations, has been compiled on a three-year basis. This makes it easier to spot and put into perspective longer-term expenditure, such as the replacement of certain vehicles. For example, Council budgeted R1,5 million to replace the mayoral vehicle, but no money has been set aside to buy mayoral cars for the following two years. A further R8 million has been set aside for this year to replace municipal vehicles, whereas in 2019/20 and 2020/2021, only R4 million per year is budgeted for this purpose.

The budget makes provision for three sources of income, namely own income, the Municipal Infrastructure Grant (MIG) and the Integrated National Electrification Programme (INEP).

Council expect to earn R78,93 million from own resources. This would mostly be the profit made from providing electricity and other services to consumers. The MIG allocation is R87,73 million, and R16,91 million is budgeted for INEP grants.

Upgrade of IT systems

Close to R5 million had been budgeted to upgrade the municipality’s IT infrastructure. The upgrade includes numerous aspects, such as purchasing new software and extending Internet connectivity at service points.

Council set R500 000 aside to upgrade the VOIP telephone system and a further R1 million for two Disaster Recovery Plan projects.

Even the councillors will have to “modernise” as R290 000 had been budgeted for phase two of the electronic distribution of agendas.

R53 million for electrical department

A big part of the capital expenditure goes to the electrical engineering department. This is to be expected, however, as the purchasing of electrical equipment such as transformers and ring units is a very expensive exercise.

R2 million has been budgeted to try and address the low-voltage problems rural farmers have to deal with. A further R2 million has been set aside to upgrade the Levubu East line. The Shefeera line will have to wait a while, but R4 million has been budgeted to address these problems in 2019/20. The urban substations will also be upgraded at a cost of R2,5 million.

Residents staying on the Roodewal road will be happy to hear that Council budgeted R2,5 million to upgrade this electrical line. To provide electricity to 170 new residential sites in Tshikota, R3 million was set aside.

In total, Council set aside R36,25 million of its own funds to upgrade the electricity network.

Electricity to various villages

The INEP funding for 2018/19 amounts to R16,91 million, and most of this money (R7,75 million) will be used to provide electricity to the villages of Muanandzhele and Mavhungeni. R2,01 million has been budgeted for the electrification of Mashau Tshilaphala village and R2,68 million to provide electricity to households in Mudimeli.

The line providing electricity to Songozwi farm will be upgraded at an expected cost of R1,78 million and a further R682 000 has been budgeted for providing electricity to the farm.

A new substation is planned for Ribolwa and the cost of this project is estimated at R2 million.

A tar road to Bungeni

Council hopes to upgrade various roads in the district from gravel to tar in the next year. The road between Chavani and Bungeni is the most expensive project, costing an expected R18 million. To provide a tarred access road to Valdezia will cost an estimated R15 million. R15 million has also been set aside to tar the road from Piesanghoek to Khunda.

Other roads to be upgraded include the Sereni Themba to Mashamba Post Office road (R2,3 million), the Tshikwarani/Manavhela access road (R1,8 million) and the Tshedza to Vuvha access road (R1,1 million).

Phase 2 of the road from Mbhokota to Mphagi will be upgraded (R5 million) and the second phase of the Mudimeli bridge and access road is expected to cost R3,3 million. Funding to upgrade the roads will come from the Municipal Infrastructure Grant.

Sport facilities and a landfill site

Council set aside R11 million in the budget to complete phase two of the Waterval sports facility. The Kutama/Sinthumule sports facility will also receive some attention, with R700 000 budgeted for this upgrade.

The relatively new landfill site just outside Louis Trichardt will also get a boost. An additional cell will be constructed at an estimated cost of R3,5 million.

Residents who have loved ones buried in the Makhado Municipal Cemetery will be delighted to hear that Council budgeted R2 million to erect a fence around the cemetery.

R3 million has been set aside in the budget for a market revitalization project at Erf 210, Burger Street. This is the market adjacent to the Shoprite centre.

New Council Chamber

A new Council chamber and offices are in the pipeline and R700 000 was set aside for this purpose in the next year. This money will be used for the planning stage, and in the following two years Council expects to spend R8 million on this project.

Under the “Building Maintenance” item, a few other projects stand out, including R600 000 budgeted for the renovation of the Vleifontein hall and fence. R500 000 has also been earmarked for the planning stage of a recreational facility at the N1 park next to the tourism kiosk.

More money into swimming pool

The municipal swimming pool will hopefully be operational again this year. The pool has not been in use for many years and hundreds of thousands of rands have been wasted in efforts to repair the facility. Council has now budgeted for another R1,1 million to have the pool repaired.

R500 000 has been budgeted to develop the Dzanani Park and R1 million has been earmarked to implement a management system for the cemetery.

As far as waste management is concerned, Council allocated R500 000 to rehabilitate the old landfill site. R500 000 has also been set aside to develop a carport and vehicle washing bay at the new landfill site.

Council budgeted R700 000 to refurbish the Waterval Traffic Station. This includes paving the area, installing an alarm system and equipping the station with a standby power generator.

Tshakhuma Fruit Market

Under the Local Economic Development category, several projects will receive a capital injection in the next year. The Tshakhuma Fruit Market will see a R2,4 million development, while the Dzanani Traders Market will receive R500 000.

R300 000 has been set aside to design an N1 Tourism Park. This will make provision for an arts and craft centre. In the following two years, Council hopes to spend R8 million to improve these facilities and, by doing so, promote tourism.

The budget also mentions R7,5 million that has been earmarked for the re-allocation of the stadium. It does not, however, specify where the stadium is.

News - Date: 24 June 2018

Anton van Zyl

Anton van Zyl has been with the Zoutpansberger and Limpopo Mirror since 1990. He graduated from the Rand Afrikaans University (now University of Johannesburg) and obtained a BA Communications degree. He is a founder member of the Association of Independent Publishers.

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