Mutale Municipality

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MUTALE MUNICIPALITY

2013/2014

BUDGET ADJUSTMENT

Table of Content

No / Section Description / Page
No / Annexure
No
Table of Content / 1
PART 1 – ADJUSTMENTS BUDGET
Mayor’s report / 2-4
Resolutions / 5-6
Executive summary / 7
Adjustment budget tables / 8 / A and B
PART 2 –SUPPORTING DOCUMENTATION
Adjustment budget supporting documentation schedules / 8 / C
Municipal manager’s quality certification / 8 / D

2013/2014 MAYOR’SBUDGET ADJUSTMENTS SPEECH

Madam Speaker

Senior Traditional Leaders

Fellow Councillors

Members of Ward committees

Senior officials of the municipality

Ladies and gentlemen

Good Morning

Madam Speaker, it is my honour to welcome all councillors and officials as well as the stakeholders to this Special Council sitting.

We are meeting here today when we have lost one of the greatest leaders ever produced by our country and our movement the African National Congress. Tata Nelson Mandela Madiba`s revolutionary spirit will continue to inspire our efforts to ensure that the poor and the working class truly benefit from the material fruits of the freedom for which he fought for. Let us together re-double our efforts to realize his vision, shared by his people and humanity, for a better Mutale, Limpopo, South Africa, a better Africa and indeed a better humanity.

Madam Speaker, section 28 of Municipal Finance Management Act (MFMA) provides that a municipality may revise an approved annual budget through an adjustment budget.

The adjustment budget must focus on the following:

Revenue and expenditure estimates downward if there is material under collection of revenue during the current year.
May authorize the utilizations of projected saving is one vote towards ending spending another.
May authorized the spending of funds that were unspent
May correct any errors in the annual budget and may provide for any other expenditure within a prescribed format

Therefore, Madam Speaker, the Council should approves the Adjustments budget for 2013/2014 Financial year in order for the Mutale Local Municipality to comply with the provisions of section 28 (1-7).

BUDGET

Madam Speaker, our 2013/2014 budget is adjusted as follows:

Budget / Adjustment budget / Reason
Income / R92 538 099 million / R112 829 412 / Rollover from Disaster grant and under collection in Rates
Operational expenditure / R64 115 107 million / R 61 360 821 / Austerity measures

This is due to R24 700 000 received from National Disaster Management Centre at the end of 2012/2013 financial year for emergency relief to address areas that were affected by floods at the beginning of the year 2013.

Therefore, our capital budget for 2013/2014 is adjusted with the aim of addressing the following strategic focus areas:

PROJECTS
MIG Allocation / 2013/14 / ADJUSTMENT
Tshilamba Streets / 14,500,000 / 11,230,568
Gravelling of Guyuni to Tshianzwane road / 1,350,000 / 0
Gravelling of Tshipise to Mattani road / 2,533,000 / 0
Gravelling of Mukondeni to Thama road / 1,200,000 / 0
Construction of low level crossing over Mulondodi river / 1,200,000 / 0
Tshilamba Park / 3,000,000 / 0
Mutale Ext.1 Ring Road / 0 / 748,214
Masisi Streets phase 2 / 0 / 4,500,000
Masisi Streets phase 1 / 0 / 3,269,432
OWN SOURCE OF FUNDING
grader / 2,740,000 / 0
Land and buildings / 200,000 / 200,000
Survey equipments / 400,000 / 495,000
Motor vehicle / 210,000 / 300,000
Lashes, spades, wheelbarrows / 10,000 / 15,000
Sports fields / 0 / 500,000
Furniture / 35,000 / 0
Computer equipment / 350,000 / 770,000
Lawnmower / 45,000
Capital Projects Bio-Metric System / 450,000 / 0
Landscape / 100,000 / 50,000
Furniture / 130,000 / 190,000
Sound system / 10,000 / 10,000
2x Printer / 5,000 / 5,000
Disaster Relief Funds
Grader / 5,085,645
Vehicle / 271,997
Tipper Truck / 633,114
Front -End loader / 1,425,861
Thengwe-Tshandama Road / 1,000,000
Construction of Dotha culverts / 4,000,000
Construction ofNkotswi culverts / 3,920,000
Construction of Tshikotoni culverts / 1,000,000
Construction of Luphephe culverts / 1,500,000
Maludzhawela culverts / 1,500,000
Tshipise-Domboni road / 3,163,384
Mutele access road / 1,000,000
Lunangwe culvert / 200,000
28,423,000 / 47,028,214

Madam Speaker, our main sources of income are: property rates,refuse removal, rental, and licensing. For us to implement the above budget we will need support and co-operation from the community as a whole. Our customers and those benefiting from our services must pay for the services we are providing, for us to realize our SDBIP targets. Working together with the local communities, we can do more.

I Thank You

Budget Resolutions

The Council resolves:

1That in terms of section 24 of the Municipal Finance Management Act ,56 of 2003,the adjustments budget of Mutale Municipality for the financial year 2013/2014; and indicative allocations for the two projected outer years 2014/2015and 2015/2016 ;and the multi year and single year capital appropriations are approved as set-out in the following tables:

1.1Budgeted financial performance (revenue and expenditure by standard classification);

1.2Budgeted financial performance (revenue by source and expenditure by municipal vote);

1.3Budgeted financial performance (revenue by source and expenditure by type); and Multi-year and single year capital appropriations by municipal vote and standard classification and associated funding by source.

2That the financial position ,cash flow ,cash backed reserve accumulated surplus ,asset management and basic services delivery targets are adopted as set-out in the following tables:

1.1Budgeted financial position

1.2Budgeted cash flows

1.3Cash backed reserves and accumulated surplus reconciliation;

1.4Asset management; and

1.5Basic service delivery

3That in terms of section 24(2) (c)(i) and (ii) of the Municipal Finance Management Act,56 of 2003 and sections 74 and 75A of the Local Government :Municipal Systems Act ,Act 32 of 2000 as amended ,the tariffs for the supply of Water ,Electricity, Waste services, sanitation services and property rates as set out in Budget Chapter 21 and annexure C is used to prepare the estimates of revenue by source ,are approved with effect from 1 July 2013.

4That in terms of section 5 of the Municipal Property Rates Act, 6 of 2004, the rates policy (or the amendments to the rates policy) as set out in budget Chapter 19 and Annexure D is approved.

5That in terms of section 24(2)(C)(iii) of the Municipal Finance Management Act, 56 of 2003 ,the measurable performance objectives for capital and operating expenditure by vote for each year of the medium term revenue and expenditure framework as set out in supporting table SA7 are approved

6That in terms of section 24(2)(C)(iv) of the Municipal Finance Act ,56 of 2003,the amendments to the integrated development plan as set out in Budget Chapter 17 are approved.

7That in terms of section 24(2)(c)(v) of the Municipal Finance Management Act,56 of 2003 ,The budget-related policies ,including any amendments as set out in Budget Chapter 19 were approved for the budget year 2013/2014.

8The Basic Services Package as set out in budget is approved for the budget year 2013/2014.

______

NETSHIPISE LIVHUWANI DATE

SPEAKER

3. Executive Summary

The budget has been compiled and funded in terms section 28 of Municipal Finance Management Act. The adjustment budget has been approved by council on 26 February 2014

The revenue sources to fund both operating and capital expenditure for 2013/2014 financial year are as follows:

Budget / Adjustment budget / Reasons
Grants and Subsidies / R78 593 000 / R100 197 000 / Rollover from Disaster grant
Accumulated Funds [own/other income] / R13 945 107 / R12 632 412 / Increase in the sale of sites
External Borrowings / Nil / Nil
TOTAL BUDGET / R92 538 107 / R112 829 412

The Adjusted Capital budget for 2013/2014 financial year is R47 028 214

The operating budget for 2013/2014 is subdivided as follows:

Budget / Adjustment budget / Reasons
Employee related costs / 33, 009,351 / 31, 338, 929 / Vacant posts
Councillors remuneration / 6,886, 108 / 7, 071, 994 / Implementation of upper limits
Repairs & Maintenance / 6,359,715 / 4, 561,852 / Austerity measures and new assets bought
General Expenditure / 17,859,933 / 18,388,046 / Increase due to disaster projects
Total operating expenditure / R64, 115 107 / R61, 360 821

4.1 Adjustment budget tables

The adjustment budget tables are detailed in annexure A. It includes the following:

Number / Description
Table B1 / Adjustments Budget Summary
Table B2 / Adjustments Budget Financial Performance (standard classification)
Table B3 / Adjustments Budget Financial Performance (revenue and expenditure by municipal vote)
Table B4 / Adjustments Budget Financial Table Performance(revenue and expenditure)
Table B5 / Adjustments Budget Capital Expenditure by vote and funding
Table B6 / Adjustments Budget Financial Position
Table B7 / Adjustments Budget Cash Flows
Table B8 / Cash backed reserves/accumulated surplus reconciliation
Table B9 / Asset management
Table B10 / Basic service delivery measurement

5. SUPPORTING DOCUMENTATION

The budget is accompanied by supporting documents in terms of section 17 (3) of the MFMA.

See supporting tables SB1 –SB 20 in annexureB

5.1Municipal manager’s quality certification

Refer to Annexture C