Honourable Members of the Executive Committee

BUDGET SPEECH OF THE THABAZIMBILOCALMUNICIPALITYPRESENTED BY THE HONOURABLE MAYOR, COUNCILLOR NALEDI LUCAS MATLOU – 31 MAY 2006

Honourable Speaker

Honourable Councillors

The Municipal Manager & Members of our Senior Management

Representatives of the Political Organisations and member of the public present in our mist.

On the 1st March 2006, our people went to the polls to make their mark and vote for their Local Government Representatives, ushering the second term of a democratic Local Government in South Africa. In his state of the nation address, President Thabo Mbeki described the second decade of our democracy as a “Decade of Hope”.

This hope manifests itself in the aspirations of our people and their confidence in their leaders and Government that can deliver on the pre-election promises.

This can never be more true for the ThabazimbiLocalMunicipality. I believe that we are all aware that this Municipality has been declared a project consolidate Municipality. This means therefore that the Municipality lacks the capacity necessary to perform critical functions required to deliver services to communities.

As we present the 2006/20077 budget, we do so conscious of the many challenges we faceof the concerns and expectations of communities and our unwavering resolve not to fail those who elected us into power. Madam Speaker, the age of hope must realise and we must begin a journey towards achieving and meeting the needs of our people. They deserve no less.

Madam Speaker, our vision as reflected in our IDP document, stated that we will strive “to be the leading Municipality that offers quality services to the broader community in the most economic, affordable, equitable and sustainable manner”.

In working towards achieving this noble vision, we commit ourselves through our mission to the upliftment of the community through provision of services by ensuring:

sensitiveness and responsiveness to the needs of the people
promoting participatory democracy and transparent governance
and facilitating economic growth and eradication of poverty

To this end, Madam Speaker, we have to commit ourselves through this budget to demonstrate our clear intentions to deliver a better life for our people.

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Madam Speaker, I have alluded elsewhere in this speech that we are a project consolidate Municipality. In our efforts to turn the situation around, a new organogram which we believe is geared towards a better service delivery, is presented:

Reviewed Organogram

The following departments, which include newly established departments, are proposed:

Department of Technical Services
Department of Finance
Department of Co-operate Services
Department of Social Services
Department of Planning & Economic Development

The only change in the reviewed organogram, is the introduction of the Department of Planning & Economic Development which will be responsible for among others:

IDP
LED & Town Planning

This department replaces the department of Communications and Marketing. A new Communications Unit has been created in the office of the Mayor. A requirement and implementation of the resolution of the National Conference of Communication Services in Municipalities.

The Council need to note also the introduction of the Manager in the office of the Chief Financial Officer. This new development is a recognition on our part of the importance and the critical role of Finance Department in the delivering of services. We also believe that the office of the Chief Financial Officer will be beefed up and can better discharge its functions as required by law.

The Development Bank of Southern Africa has once again responded positively to Governments efforts to capacitate municipalities by sending a team of experts to Thabazimbi to work with the Municipality and to transfer skills. The three members of the technical team will be based in Thabazimbi for a year and will be placed in the following departments:

Technical Services
Finance Department
Planning Department

We believe that their contribution will make a difference and leave us behind knowing that the Municipality can be able to stand on its own without the need for outside assistance.

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Secondly, the Municipality has as its core businesses, the responsibility to deliver

services to our people. As we enter the new financial year in July 2006, the new tariffs will come into effects from 1 July 2006.

1.Water supply

Basic charge:a)domestic undevelopedR11.40

b)domestic developed and occupiedR11.40

c)bulk, trade and industryR77.40

Charge of water supply per month:

Purified water to all domestic consumers:

a)Indigent 0 – 6klfree

b)Domestic consumers1 – 10klR3.55

11kl +R4.40

c)Leeupoort domesticper klR3.65

d)Regorogile informal settlement-per householdR25.00

e)Trade and industryR4.30

2.Sewerage tariffs

Basic charges-unconnected areas:

a)ThabazimbiR72.81

b)Rooiberg & NorthamR44.21

Basic charges-connected premises:

a)Private dwellings

Thabazimbi & RegorogileR72.81

Private dwellings

Rooiberg & NorthamR44.21

Informal settlementR31.00

Septic tanks-NorthamR55.26

(Per saction)

3.Electricity supply

Household consumers except prepaid consumer:

a)Basic chargeR13.35

b)Indigents consumers 0 – 50 KwhFree

Other tariffs related to the other services can be inspected at Municipal Offices at various service points. Except for electricity, the tariffs for:

i)waste

ii)sewerage and

iii)assessment rate show a 5.2% increase across these three areas

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Tariff increase in electricity amounts to 5.9%. This increase in tariffs is necessary to ensure that the Municipality continues to deliver services to residents and communities in a sustainable manner. It is also worth noting that there has not been an increase in assessment rates for the past two (2) years. In the same breath, free basic services will only be provided to indigent rather than to all consumers who can afford to pay for these services without assistance. The DPLG has set aside R17 155 000.00 towards the equitable share fund for Thabazimbi to assist indigents and vulnerable households.

In furthering our collective efforts as Municipality to deliver services to communities, a total amount of R93 498 539.00 towards the operational budget has been set asidee. This amount includes the salary budget. Projected operational budgets for 2007/2008 is R97 400 039.00 and R102 205 599.00 for 2008/2009.

In maximising on service delivery efforts, capital projects as identified in our Integrated Development Plan have been budgeted out of the following funds:

Municipal Infrastructure grant R13 000 000.00
Municipal Support Infrastructure grantR734 000.00

These projects are aimed at providing the necessary infrastructure needed to provide services to residents and businesses. In addition to projects that will be funded out of these funds, the following projects will be supported and funded by Anglo Platinum:

Community infrastructureR1 382 000.00
EducationR1 950 000.00

The following allocation has been made by the Department of Labour towards community projects for training purposes in and around Thabazimbi:

R2 162 357.00

These contributions by various institutions towards our service delivery efforts, need to be applauded. We must build strong partnerships with our stakeholders as we move towards the age of hope. The Constitution by Anglo Platinum towards the Municipality’s efforts to better the lives of our people is a step in the right direction. We believe other mines will come onboard as we seek to turn the situation around for the better. We also hope that with the abundance of expertise in the mines, the Municipality can tap into this resource, thereby creating an opportunity to develop internal capacity to meet its constitutional obligations.

This Council must commit itself towards building a viable organisation that will be in a position to eradicate poverty and building viable communities. We therefore, Madam Speaker, have to intensify our efforts to create a conducive environment for economic growth and creation of wealth.

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Similarly, a Local Economic Development Strategy tailored towards economic growth and exploiting our mining resources, our tourism and agricultural potential to our advantage.

Madam Speaker, it is very clear that we must put in place strategic plans in order to better respond to the many challenges this Municipality faces. Of critical importance are the following:

Spatial Development Framework
Housing Development Plan
Public Participation Policy
And the Implementation of our Communication Strategy

It is also critical that the Municipality moves urgently to establish Ward Committees. These structures are a Legislative requirement as reflected in the Structures Act. It is also the responsibility of the Municipality to ensure that Ward Committees are fully resourced and functional so that they will be able to carry out their responsibilities. We therefore require the full commitment of both Management and Councillors particularly Ward Councillors to ensure public participation takes place throughout the Municipal area of jurisdiction.

Finally, Madam Speaker, we present this budget to Council for adoption. We believe, as the Executive Committee, that this gives us an opportunity to start re-building the Municipality and propelling it towards efficient and effective service delivery. We also hope that we will at all the times involve communities in what we do and what we will be able to deliver to them in the next financial year 2006/2007.

I thank you