Although the Makhado Municipality’s budget was presented and approved on Friday evening May 30, residents were left in the dark as to how much more they will have to pay for municipal services for the next financial year. No figures to that effect were included in the budget speech delivered by Mayor Glory Mashaba.

However, in an advertisement published by the Makhado Municipality in this week’s edition, the municipality announces a 6% tariff increase for various services, as well as a 13% increase for electricity as from July 1. As for assessment rates, the rate adopted by Council for the 2008/9 financial year will be implemented from February 1, 2009.

In her speech, Mayor Mashaba indicated that the purpose of the budget was to "extend its reach to areas that were marginalized in the past, without neglecting those that were well looked after."

About the new budget, she indicated that it has been drawn up in compliance with the Municipal Structures Act and the Municipal Financial Management Act, and as such is informed and aligned to the IDP objectives.

She acknowledged that residents had to be consulted "and be allowed to have input in mapping out their future in line with the government service Batho Pele principles" which is in keeping with the Constitution of the country. To that effect, she indicated that several public hearings were held at which these principles were applied.

In terms of revenue collection, Mashaba indicated that revenue collection, especially in R293 towns, was "a great challenge to the municipality. Currently the bill at the R293 towns ... is standing at R39 790 882, which is 55% of the total debts for services rendered by the municipality".

To assist with the debt collection, the services of a private firm have been acquired and more than R5 million in outstanding debts have been collected in Louis Trichardt town alone.

With regard to grants from the national government and other sources, a total of R152 964 00 has been made available. A total of R51,7 million has been allocated by the Vhembe District Municipality for the development of bulk water supply infrastructure, while it also supplied an amount of R23 million for the provision of bulk and household sanitation. Of this amount, R10 million is scheduled to be used for the Louis Trichardt sewage treatment works, while another R10 million has been set aside for the upgrading of the municipal waste disposal plant. More good news for residents is that R16 million has been budgeted for refurbishing the roads in the CBD. The electricity backlog will be addressed by the spending of R11,5 million supplied by the Vhembe District Municipality.

Mashaba also touched on material losses suffered by the municipality in terms of vandalism and theft, and specifically with reference to the copper cables that supply electricity to pump stations. She stressed the fact that the culprits are often known to residents, but nothing is done about it and they are allowed to get away with their crimes.

As far as revenue generation is concerned, the projected income for the 2008/9 financial year is R339 605 801, of which the equitable share grant totals R104 655 000. Expenditure, on the other hand, will amount to R346 722 471, which leaves a shortfall of R7 116 670. In the mayor’s speech, however, she indicates that the deficit will be R54 768 170, which she ascribes to the "Depreciation that was introduced by General Accepted Municipal Accounting Practice … The depreciation expense is R64 580 000 and it is a non-cash item. Part of the depreciation will be funded by reserves and accumulated surplus as indicated in the detailed budget". Some confusion exists about these figures and at the time of going to press, the office of the spokesperson of the municipality had not been able to supply an answer.

In terms of salaries and wages, the amount of R131 552 000 set aside constitutes 39% of the operational budget. This is once again outside the 35% by national guidelines. As far as the operational budget is concerned, the total estimate amounts to R339,6 million. Some of the projects for which money has been set aside are the following:

* Tourism R200 000

* Mountain Marathon R7 900

* Kremetart Cycle Tour R9 700

* Hanglip 54 Golf Tournament R16 000

* Bosveld Marathon R7 900

* Land of Legend Marathon R7 900

* Makhado Football Marathon R18 500

* Contribution to Entrepreneurs Week R10 000

More information and feedback regarding the budget will appear in next week’s Zoutpansberger.