OPSOMMING VAN KONSEP BEGROTING EN IDP 2012/13; 2013/14 EN 2014/15

OPSOMMING VAN KONSEP BEGROTING EN IDP 2012/13; 2013/14 EN 2014/15 A. WETLIKE ASPEKTE VAN BEGROTING Hoofstuk 4 van die MFMA handel oor die begroting van Plaaslike Owerhede. Graag bring ek die volgende wetlike aspekte van begroting onder u aandag: Appropriation of funds for expenditure 15. A municipality may, except where otherwise provided in this Act, incur expenditure only (a) (b) in terms of an approved budget; and within the limits of the amounts appropriated for the different votes in an approved budget. Annual budgets 16. (1) The council of a municipality must for each financial year approve an annual budget for the municipality before the start of that financial year. (2) In order for a municipality to comply with subsection (1), the mayor of the municipality must table the annual budget at a council meeting at least 90 days before the start of the budget year. (3) Subsection (1) does not preclude the appropriation of money for capital expenditure for a period not exceeding three financial years, provided a separate appropriation is made for each of those financial years. Contents of annual budgets and supporting documents 17. (1) An annual budget of a municipality must be a schedule in the prescribed format

(a) setting out realistically anticipated revenue for the budget year from each revenue source; (b) appropriating expenditure for the budget year under the different votes of the municipality; (c) setting out indicative revenue per revenue source and projected expenditure by vote for the two financial years following the budget year; (d) setting out (i) estimated revenue and expenditure by vote for the current year; and (ii) actual revenue and expenditure by vote for the financial year preceding the current year; and (e) a statement containing any other information required by section 215 (3) of the Constitution or as may be prescribed. (2) An annual budget must generally be divided into a capital and an operating budget in accordance with international best practice, as may be prescribed. (3) When an annual budget is tabled in terms of section 16 (2), it must be accompanied by the following documents: (a) draft resolutions (i) approving the budget of the municipality; (ii) imposing any municipal tax and setting any municipal tariffs as may be required for the budget year; (iii) approving the budgets for the relevant financial year of each municipal entity under the sole or shared control of the municipality; and (iv) approving any other matter that may be prescribed;

(b) measurable performance objectives for each vote in the budget, taking into account the municipality s integrated development plan; (c) a projection of cash flow for the budget year by revenue source, broken down per month; (d) any proposed amendments to the municipality s integrated development plan following the annual review of the integrated development plan in terms of section 34 of the Municipal Systems Act; (e) any proposed amendments to the budget-related policies of the municipality; (f) particulars of the municipality s investments; (g) any prescribed budget information on municipal entities under the sole or shared control of the municipality; (h) particulars of all proposed new municipal entities which the municipality intends to establish or in which the municipality intends to participate; (i) particulars of any proposed service delivery agreements, including material amendments to existing service delivery agreements; (j) particulars of any proposed allocations or grants by the municipality to (i) other municipalities; (ii) any municipal entities and other external mechanisms assisting the municipality in the exercise of its functions or powers; (iii) any other organs of state; (iv) any organisations or bodies referred to in section 67 (1); (k) the proposed cost to the municipality for the budget year of the salary, allowances and benefits of

(l) (m) (i) each political office-bearer of the municipality; (ii) councillors of the municipality; and (iii) the municipal manager, the chief financial officer, each senior manager of the municipality and any other official of the municipality at a remuneration package at least equal to that of a senior manager; the proposed cost for the budget year to a municipal entity under the sole or shared control of the municipality of the salary, allowances and benefits of (i) each member of the entity s board of directors; and (ii) the chief executive officer and each senior manager of the entity; and any other supporting documentation as may be prescribed. Publication of annual budget 22. Immediately after an annual budget is tabled in a municipal council, the accounting officer of the municipality must (a) in accordance with Chapter 4 of the Municipal Systems Act (i) make public the annual budget and the documents referred to in section 17 (3); and (ii) invite the local community to submit representations in connection with the budget; and (b) submit the annual budget (i) in both printed and electronic formats to the National Treasury; and (ii) in either format to any prescribed national or provincial organs of state and to other municipalities affected by the budget.

Consultations on tabled budgets 23. (1) When the annual budget has been tabled, the municipal council must consider any views of (a) the local community; and (b) the National Treasury and any provincial and national organs of state and municipalities which made submissions on the budget. (2) After considering all budget submissions, the council must give the mayor an opportunity (a) to respond to the submissions; and (b) if necessary, to revise the budget and table amendments for consideration by the council. (3) The National Treasury may issue guidelines on the manner in which municipal councils should process their annual budgets, including guidelines on the formation of a committee of the council to consider the budget and to hold public hearings. (4) No guidelines issued in terms of subsection (3) are binding on a municipal council unless adopted by the council. Approval of annual budgets 24. (1) The municipal council must at least 30 days before the start of the budget year consider approval of the annual budget. (2) An annual budget (a) (b) (c) must be approved before the start of the budget year; is approved by the adoption by the council of the resolution referred to in section 17 (3) (a) (i); and must be approved together with the adoption of resolutions as may be necessary (i) imposing any municipal tax for the budget year;

(ii) setting any municipal tariffs for the budget year; (iii) approving measurable performance objectives for each vote in the budget; (iv) approving any changes to the municipality s integrated development plan; and (v) approving any changes to the municipality s budget-related policies. B. RIGLYNE VIR 2012/13 BEGROTING Inleiding Nasionale Tesourie se omsendskrywe nommer 58 bepaal die riglyne hoe die begroting saamgestel moet word. Graag haal ek aan uit Nasionale Tesourie se omsendskrywe nr 58: 1.2 Procurement Reform and fighting corruption Municipalities are again advised that the supply chain compliance unit will also be focusing on municipal procurement processes. Consequently, municipalities can expect requests for information relating to their tender committees and processes as well as specific tenders and contracts. Municipalities are also encouraged to introduce greater transparency to municipal supply chain procedures. 3. Revising rates, tariffs and other charges When municipalities and municipal entities revise their rates, tariffs and other charges for their 2012/13 budgets and MTREF, they need to take into account the labour (i.e. the wage agreements with unions) and other input costs of services provided by the municipality or entity, the need to ensure financial sustainability, local economic conditions and the affordability of services, taking into consideration the municipality s indigent policy. Municipalities should also take into account relevant policy developments in the different sectors (such as the inclining block tariff (IBT) proposals from the National Energy Regulator of South Africa (NERSA)).

Municipalities should continue to explore appropriate ways of structuring the tariffs for utility services to encourage more efficient use of these services and to generate the resources required to fund the maintenance, renewal and expansion of the infrastructure required to provide the services. National Treasury continues to encourage municipalities to keep increases in rates, tariffs and other charges at levels that reflect an appropriate balance between the interests of poor households, other customers and ensuring the financial sustainability of the municipality. For this reason municipalities must justify in their budget documentation all increases in excess of the 6 per cent upper boundary of the South African Reserve Bank s inflation target. 3.1 NERSA s process to approve electricity tariffs It is very important that municipalities and NERSA work together to ensure that the process of approving electricity tariffs does not disrupt the process of compiling municipal budgets or compromise community consultations on the budget. It is for this reason that section 43 of the MFMA reads: 43 (1) If a national or provincial organ of state in terms of a power contained in any national or provincial legislations determines the upper limits of a municipal tax or tariff, such determination takes effect for municipalities on a date specified in the determination. (2) Unless the Minister on good grounds approves otherwise, the date specified in a determination referred to in subsection (1) may- (a) if the determination was promulgated on or before 15 March in a year, not be a date before 1 July in that year; or (b) if the determination was promulgated after 15 March in a year, not be a date before 1 July in the next year. So if NERSA only concludes its final determination for a municipality after 15 March, the municipality is not obliged to implement NERSA s final determination with effect from 1 July of the current year, unless the Minister on good grounds approves otherwise. 3.3 Water tariffs must be cost-reflective Municipalities are, therefore, encouraged to review the level and structure of their water tariffs carefully, with a view to ensuring:

Water tariffs are fully cost-reflective including the cost of maintenance and renewal of purification plant and water networks, and the cost of new infrastructure; Water tariffs are structured to protect basic levels of services; and Water tariffs are designed to encourage efficient and sustainable consumption (e.g. through increasing block tariffs). If a municipality s water tariffs are not fully cost reflective, the municipality should develop a pricing strategy to phase-in the necessary tariff increases in a manner that spreads the impact on consumers over a period of time. However, all municipalities should aim to have appropriately structured, cost-reflective water and sanitation tariffs in place by 2014. To mitigate the need for water tariff increases, municipalities must put in place an appropriate strategy to limit water losses to acceptable levels. In this regard municipalities must ensure that water used by its own operations is charged to the relevant service, and not simply attributed to water losses. Municipalities are reminded that particular attention needs to be given to ensuring that the property rates charged to key economic sectors, such as agriculture, remain affordable. 3.5 Solid waste tariffs Many municipalities solid waste tariffs do not cover the cost of providing the different components of the service. Where this is the case, municipalities should aim to have appropriately structured, cost-reflective solid waste tariffs in place by 2015. The tariffs for solid waste management must take into account that it is good practice to maintain a cash-backed reserve to cover the future costs of rehabilitating landfill sites. Municipalities are encouraged to explore alternative methodologies to manage solid waste, including recycling and incineration in plants that use the heat energy to generate electricity. 4 Funding choices and management issues

Given on-going economic pressures referred to in section 1 above, the revenue side of municipal budgets will continue to be constrained, so municipalities will again need to make some very tough decisions on the expenditure side this year. Priority ought to be given to: Ensuring that drinking water and waste water management meets the required quality standards at all times; Protecting the poor; Supporting meaningful local economic development (LED) initiatives that foster micro and small business opportunities and job creation; Securing the health of their asset base (especially the municipality s revenue generating assets) by increasing spending on repairs and maintenance; and Expediting spending on capital projects that are funded by conditional grants. Municipalities must also ensure that their capital budgets reflect consistent efforts to address the backlogs in basic services and the renewal of the infrastructure of existing network services. 4.1 Eliminating non-priority spending Municipalities must pay special attention to controlling unnecessary spending on nice-to-have items and non-essential activities. The following examples of non-priority expenditure have been observed, and need to be eliminated: i. excessive sponsorship of music festivals, beauty pageants and sporting events, including the purchase of tickets to events for councillors and/or officials; ii. public relations projects and activities that are not centred on actual service delivery or are not a municipal function (e.g. celebrations; gala dinners; commemorations, advertising and voter education); iii. LED projects that serve the narrow interests of only a small number of beneficiaries or fall within the mandates of other government departments such as the Department of Agriculture; iv. excessive catering for meetings and other events, including the use of public funds to buy alcoholic beverages; v. arranging workshops and events at expensive private venues, especially ones outside the municipality (as opposed to using the municipality s own venues);

vi. excessive printing costs (instead of maximising the use of the municipality s website, including providing facilities for the public to access the website); vii. excessive luxurious office accommodation and office furnishings; viii. foreign travel by mayors, councillors and officials, particularly study tours ; ix. excessive councilor and staff perks such as luxurious mayoral cars and houses, notebooks, IPADS and cell-phone allowances; travel and subsistence allowances (certain of these may be irregular spending see paragraph 4.8 below); x. excessive staff in the office of the mayor particularly the appointment of political advisors and spokespersons ; xi. all donations to individuals that are not made in terms of the municipality s indigent policy or a bursary scheme; for instance donations to cover funeral costs (other than pauper burials which is a district municipality function); xii. costs associated with long-standing staff suspensions and the legal costs associated with not following due process when suspending or dismissing staff, as well as payment of severance packages or golden handshakes ; and xiii. the use of consultants to perform routine management tasks, and the payment of excessive fees to consultants. 4.9 Budget management issues dealt with in previous MFMA Circulars Municipalities are reminded to refer to MFMA Circulars 48, 51, 54 and 55 with regards to the following issues: 1. Mayor s discretionary funds and similar discretionary budget allocations National Treasury regards allocations that are not designated for a specific purpose to be bad practice and discourages them (refer to MFMA Circular 51). 2. Unallocated ward allocations National Treasury does not regard this to be a good practice, because it means that the tabled budget does not reflect which ward projects are planned for purposes of public consultation and council approval (refer to MFMA Circular 51). 3. New office buildings Municipalities are required to send detailed information to National Treasury if they are contemplating building new main office buildings (refer to MFMA Circular 51).

4. Virement policies of municipalities Municipalities are reminded of the principles that must be incorporated into municipal virements policies (refer to MFMA Circular 51). 5. Providing clean water and managing waste water Municipalities are reminded to include a section on Drinking water quality and waste water management in their 2012/13 budget document supporting information (refer to MFMA Circular 54). 7 Budget process and submissions for the 2012/13 MTREF Over the past number of years there have been significant improvements in municipal budget processes. Municipalities are encouraged to continue their efforts to improve their budget processes based on the guidance provided in MFMA Circulars 10, 19, 28 and 31 as well as the new regulations. Once more, municipalities are reminded that the IDP review process and the budget process should be combined into a single process. 7.1 Submitting budget documentation and schedules for 2012/13 To facilitate oversight of compliance with Municipal Budget and Reporting Regulations, accounting officers are reminded that: Section 22(b)(i) of the MFMA requires that immediately after an annual budget is tabled in a municipal council it must be submitted to the National Treasury and the relevant provincial treasury in both printed and electronic formats. The deadline for such submissions is Monday, 9 April 2012. Section 24(3) of the MFMA, read together with regulation 20(1), requires that the approved annual budget must be submitted within ten working days after the council has approved the annual budget. So if the council only approves the annual budget on 30 June 2012, the final date for such a submission is Thursday, 13 July 2012, otherwise an earlier date applies. The municipal manager must submit: the budget documentation as set out in Schedule A of the Municipal Budget and Reporting Regulations, including the main Tables (A1 - A10) and all the supporting tables (SA1 SA37) in both printed and electronic format; and the draft service delivery and budget implementation plan in both printed and electronic format; and in the case of approved budgets, the council resolution.

C. BEDRYFSBEGROTING Tans beloop die tekort vir die 2012/13 begroting R36 393 038. Die kapitaal begroting vir bogenoemde tydperk (2012/13) beloop R72 296 000. Die waarskynlikheid dat 100% van kapitaal bestee gaan word is nie goed nie. Die tekort as n persentasie van totale begroting (kapitaal en bedryfsbegroting) beloop 15.22%. UITGAWE SALARISSE EN LONE Salarisse en lone verhoog vanaf R39 706 158 (2011/12) na R45 684 817 (2012/13). Ingesluit in die salarisse en lone is die vergoeding van Raadslede. Salarisse en lone neem toe met ongeveer R5 978 659 of 15.08%. Daar is vir n salaris aanpassing van 7.5% voorsien. n Nuwe ooreenkoms moet met unies onderhandel word en is daar nie duidelike riglyne nie. Die oortydbegroting het toegeneem vanaf R1 205 960 (2011/12) tot R3 610 813 (2012/13). n Toename van R2 404 853 of 199.41%. Oortyd is n probleem en word nie beheer nie. Die oortyd as n persentasie van totale salaris begroting beloop 7.9%. Indien die oortyd gebruik word om addisionele personeel aan te ste,l kan daar ongeveer 60 addisionele werknemers aangestel word. Die salarisse en lone as n persentasie van die totale begroting beloop 31.91%. (38.84% 2011/12). Indien die voorsiening vir waardevermindering en voorsiening vir slegte skuld vanaf die totale uitgawes afgetrek word, beloop die salaris-en lone komponent van die totale begroting 40.04% wat onaanvaarbaar is. Nasionale Tesourie se riglyn beloop ongeveer 30%. ALGEMENE UITGAWE Die algemene uitgawes verhoog vanaf R49 537 426 (2011/12) tot R61 079 112. (2012/13) n Toename van R11 541 686 of 23.30%. Genoemde afwyking kan aan die volgende toegeskryf word:

Behuising was voorheen nie as uitgawe begroot nie. (Bedrag R12 020 000.00.) Vêrder is daar addisioneel voorsiening gemaak vir die opmeet van erwe. (Bedrag R500 000.00.) HERSTEL EN ONDERHOUD Herstel en onderhoud verhoog vanaf R3 227 188 (2011/12) na R5 251 867. (2012/13) n Toename van R2 024 679 of 62.74%. Die bates van die Raad moet behoorlik in stand gehou word en moet gelde beskikbaar wees om onderhoud aan bates te doen. Daar is addisioneel begroot vir die volgende: Elektrisiteitsnetwerk R427 680 (2011/12) R1 250 000 (2012/13) Water network R153 252 (2011/12) R 350 000 (2012/13) Nasionale Tesourie is uiters bekommerd dat Rade nie genoegsaam begroot vir herstel en onderhoud om bates behoorlik in stand te hou nie. RENTE OP LENINGS In die kapitaal begroting is daar voorsiening gemaak vir die volgende lenings: Landfill site R1 800 000.00 Trucks and equipment R3 200 000.00 Electrification R1 500 000.00 R6 500 000.00 Daar is addisioneel begroot vir die rente op genoemde lenings. WAARDEVERMINDERING Daar moet waardevermindering op die bates afgeskryf word en die waardevermindering moet as n koste in die inkomstestaat aangetoon word. Tans het die Raad nie n behoorlike Bate Bestuurstelsel nie en sal daar so gou moontlik n behoorlike stelsel aangekoop moet word indien die stelsel van Sebata nie gebruik word nie. Daar kan nie behoorlik vir waardevermindering begroot word nie aangesien daar geen stelsel is nie. n Bedrag van R23 725 594 was in die 2010/11 finansiële state afgeskryf teen inkomste. Daar is vir die 2012/13 finansiële jaar slegs R17 780 084 begroot. Daar is ondervoorsien vir waardevermindering en sal genoemde syfer jaarliks aangepas moet word om die korrekte bedrag te voorsien.

BYDRAES EN VOORSIENINGS Die bydraes en voorsiening verhoog vanaf R6 308 579 (2011/12) na R12 086 026 (2012/13). n Verhoging van R5 777 447 of 91.58%. Genoemde styging kan toegeskryf word aan die verhoging in slegte skulde. Die voorsiening vir slegte skulde verhoog vanaf R5 367 386 (2011/12) tot R11 288 576 (2012/13). Daar is vir die volgende voorsien: Rehabilitation of tip site R 250 000.00 Retirement benefits and R 150 000.00 Provision for bad debt R11 288 576.00 Leave Reserve R 397 450.00 Daar word pogings aangewend om uitstaande debiteure te vorder, maar is nie suksesvol nie. Volgens GRAP moet daar vir die voorsiening van Rehabilitation of tip site en retirement benefits voorsien word. n Aktuaris sal korrekte bedrag bepaal en sal dit in aansuiwerings begroting reggestel moet word, indien nodig. KAPITAAL UIT CRR (Capital replacement reserve) & SKENKINGS Volgens GRAP mag n munisipaliteit bydrae to n fonds maak. (CRR Capital Replacement Reserve.) Hierdie fonds MOET 100% uit kontant opgemaak word en mag hierdie fonds nie aangewend word vir enige ander doeleindes as om kapitale bates te finansier nie. Geld mag nie uit fonds geleen word en weer later terugbetaal word nie. Volgens die 2012/13 begroting gaan daar ongeveer R3 383 100 aan kapitale uitgawes spandeer word wat uit eie fondse finansier moet word. Hierdie gelde moet uit die CRR na die bedryfs begroting oorgeplaas word. Tans is die kontantvloei van Tsantsabane Munisipaliteit uiters swak en kan daar feitlik geen kapitaal spandeer word uit eie fondse nie. Die Munisipaliteit brei uit en is kantoorspasie uiters beperk. Daar sal voorsiening gemaak moet word vir kantoorspasie.

Die totale kapitaal begroting vir 2012/13 beloop R70 308 180. kapitaal begroting word soos volg finansier: Die CRR / Eie fondse R 3 383 100 Eksterne Lenings R 6 500 000 Skenkings / Grants R60 425 080 R70 308 180 Genoemde kapitaal begroting kan toegeskryf word aan die grootmaat dienste wat gelewer moet word om aan Kolomela en Assmang se behoeftes te voldoen. Indien geen skenkings gelde ontvang word nie, kan geen kapitaal aangegaan word nie. Die bydrae van MIG vir die 2012/13 finansiële jaar beloop ongeveer R12 432 000.00. INKOMSTE ELEKTRISITEIT (11,03%) Die totale inkomste ten opsigte van elektrisiteit beloop ongeveer R28 075 541. Volgens Nasionale Tesourie se omsendskrywe 58 en NERSA se riglyne moet tariewe nie meer as met 11,03% verhoog word nie. Eskom gaan wel sy tariewe met ongeveer 13,5% verhoog vanaf 1 Julie 2011. Tsantsabane Munisipaliteit verhoog sy elektrisiteits tariewe met 11,03% soos aanbeveel deur NERSA. Daar moet nog aansoek gedoen word by NERSA om tariewe te verhoog met 11.03%. Dit mag gebeur dat NERSA ander tariewe goedkeur as wat in begroting vervat is. Dit is baie belangrik dat Tsantsabane Munisipaliteit goedkeuring by NERSA ontvang vir sy elektriese tariewe. Indien daar nie vroegtydig goedkeuring verkry word nie, kan Tsantsabane Munisipaliteit se lisensie om krag te versprei weggeneem word en kan u boetes betaal. NERSA versoek dat elektrisiteit in blok tariewe verkoop moet word. Tsantsabane Munisipaliteit moet gaan bepaal of sy stelsel wel blok tariewe kan hanteer.

WATER (18,%) Water is n skaars hulp bron en moet baie goed bestuur word. Die tarief is baseer op die bestuur van water aanvraag deur n hoër tarief vir groot hoeveelhede te hef en n basiese voorsiening van gratis water aan hulpbehoewende huishouding. Die water tarief verhoog met ongeveer 18%. Die inkomste uit waterverkope beloop ongeveer 6.52% van die totale inkomste. Tariewe ten opsigte van water sal in die toekoms vêrder aangepas moet word om te voorsien aan al die behoeftes van alle gemeenskappe. Die begrote inkomste beloop (2012/13) R 9 313 324.00 Die begrote uitgawes beloop (2012/13) R15 756 080.00 (Tekort ) (R 6 442 756.00) Tans beloop die blok tarief soos volg: 0-30 kl @ R7.85 /kl 31-55 kl @ R9.03 /kl 56-105 kl @ R10.39 /kl 106 kl and more @ R14.07 /kl Daar word voorgestel dat die blok tarief soos volg verander: 0-6 kl @ R7.85 /kl 7-15k @ R9.03 /kll 16-30kl @ R10.39 /kl 31 kl and more @ R14.07 /kl Indien bogenoemde aanvaar word, sal tariewe baie meer styg as die gemiddelde 18%. Die aankoopkoste van water beloop ongeveer R6 960 000 en kan ons nie die water teen n verlies verkoop nie. Die grootste problem wat Tsantsabane Munisipaliteit sal moet oorkom is om waterverliese te beperk aangesien die water baie duur is en die verbruiker nie vir die verliese moet betaal nie. Vêrder moet daar met Kolomela en Assmang onderhandel word om te help met die boor van boorgate en oprigting van resiviors en pyplyne.

Nasionale Tesourie het melding gemaak dat tariewe kostes moet reflekteer. Waterdienste MOET nie teen n verlies bedryf word nie. Indien die korrekte waardevermindering in berekening gebring moet word, sal tariewe verder moet toeneem. Dit is uiters noodsaaklik dat voorafbetaalde watermeters installeer moet word by hulpbehoewende inwoners wat meer as die toegelate 6 kl verbruik en nie daarvoor betaal nie. Wanneer voorafbetaalde watermeters gebruik word, kan daar oorweeg word om die hoeveelheid water te verhoog aan die hulpbehoewende inwoners. RIOOL GELDE (18.0%) Riolerings-gelde word aangepas met ongeveer 18.0%. Die voorsiening van riool dienste is n ekonomiese diens wat vir homself moet betaal en wat nie deur ander tariewe subsidieer moet word nie. Die inkomste en uitgawes vir die 2012/13 begroting beloop soos volg: Inkomste R6 864 201 Uitgawes R7 770 994 Tekort R 906 793 Uitgawe Suiweringswerke R4 798 847 Totale tekort vir jaar (R5 705 64) n Nuwe tarief is geskep vir Mall wat ontwikkel word. VULLISVERWYDERING (18.0%) Die skoonhou en afvalbestuur van die munisipaliteit is arbeidsintensief en duur. Vêrder is hierdie diens n ekonomiese diens wat nie deur ander tariewe subsidieer moet word nie. Die tekort vir die 2012/13 finansiële jaar beloop ongeveer R3 223 174. Die tarief word vir die volgende drie jaar met 18% verhoog sodat diens op n surplus bedryf kan word. Daar behoort n ondersoek gedoen te word om te bepaal of diens nie meer effektief gelewer kan word nie. Die Raad moet nie staatmaak om slegs tariewe te verhoog nie. Die uitgawes moet aangespreek word.

EIENDOMSBELASTING Genoemde tarief verhoog met ongeveer 9,0%. Eiendomsbelasting moet aangewend word om nie winsgewende dienste soos Biblioteke, Verkeer, Paaie en Strate asook die administratiewe koste te dek. Vêrder behoort die belasting op landbou grond so aangepas te word dat dit in ooreenstemming is met die groter streek. Die verhouding waarteen landbou grond belas word is 1: 0.10. n Nuwe tarief is ingebring om myneiendom te belas. Die verhouding waarop gebou binne die myngebied belas gaan word is 3:1. Tans is ons besig met n Interim waardasie. Sodra genoemde waardasie afgehandel is, sal alle nuwe eiendom belas word. Die beraamde addisionele inkomste op genoemde eiendomme beloop ongeveer R5 000 000.00. TARIEWE Indien bogenoemde tariewe toegepas word, sal n gemiddelde huishouding se diensterekening met ongeveer 11,35% toeneem. Genoemde verhoging is vêr bo die inflasiekoers en sal daar aan die publiek verduidelik moet word waarom styging bo inflasiekoers is. Die redes vir verhoging kan soos volg verduidelik word: Elektrisiteit Genoemde styging kan aan Eskom probleme toegeskryf word en het Munisipaliteit geen beheer oor genoemde styging nie. Water Tans word die water wat vanaf Sedibeng aangekoop word teen n verlies verkoop en kan die Munisipaliteit nie water teen verlies verkoop nie. Eie bronne moet ontwikkel word en sovêr moontlik moet daar nie van Sediben se water gebruik gemaak word nie. Tans beloop die uitstaande water rekening van Sediben Water ongeveer R18,0 miljoen. Vullisverwydering en Riool gelde Genoemde dienste is ekonomiese dienste en mag nie teen verliese bedryf word nie. Tans word riool en vullis dienste teen verliese bedryf. Daar sal baie meer inisatief aan die dag gelê moet word met die berekening van tariewe. Daar moet nie net na tarief verhogings gekyk

word nie, maar na produktiwiteit van die werkerkorps. Is daar nie te veel werknemers wat niks doen nie? Word werknemers produktief aangewend? Kan die dienste nie goedkoper gelewer word nie? Wat se besparings word deur bestuur ingebring om kontantvloei te verbeter? Indien tariewe jaar-na-jaar verhoog word, sal die gemiddelde inwoner nie meer die dienste kan bekostig nie. Vêrder sal die Raad ook nie al die werknemers kan betaal nie. Die Raad en werknemers moet met voorstelle kom om dienste goedkoper te lewer. KONTANTVLOEI Die kontantvloei van Tsantsabane Munisipaliteit is uiters swak en moet daar daadwerklike stappe geneem word om die uitstaande debiteure te vorder. Die uitstaande debiteure het toegeneem vanaf R50 592 493 (2009/10) tot R58 668 479 (2010/11). n Toename van R8 075 986 of 15.96%. Vêrder het uitstaande debiteure vir die vyf maande vanaf 1 Julie 2011 tot 30 November 2011 gestyg tot R66 683 205. n Toename van R8 014 726 of 13.66% in ses maande. Tsantsabane Munisipaliteit kan nie sy verpligtinge nakom ingevolge die MFMA nie. (Betaling van krediteure binne 30 dae.) Die kontantvloei van Tsantsabane Munisipaliteit is so swak dat die Februarie 2012 salarisse nie betaal kon word nie. Die MIG fondse is gebruik om salarisse te betaal. Aan die einde van Maart 2012 ontvang Tsantsabane Munisipaliteit equitable share wat genoegsaam sal wees om salarisse te betaal. Die problem gaan ontstaan aan die einde van Mei 2012 en Junie 2012. Daar sal nie genoegsame kontant voorhande wees om uitgawes te dek as uitstaande debiteure nie gevorder word nie. Volgens die Finansiële State van die Raad wat op 30 Junie 2011 geëindig het, het die bedryfsbates en laste soos volg beloop: Bedryfsbates R24 870 245 (2009/10) R21 181 313 (2010/11) Bedryfslaste R37 798 334 (2009/10) R63 569 716 (2010/11) Die bedryfslaste oorskry die bedryfsbates met R42 388 403. Tegnies is Tsantsabane Munisipaliteit bankrot. Die verhouding tussen bates en laste is 1 : 3. Die laste oorskry die bates met 3 x (keer). n Bedrag van R18 796 479 is ingesluit in die bedryfsbates soos bo genoem. Genoemde bedrag is reeds toegewys aan projekte en behoort gelde aan die

Tsasamba rekening. Indien laasgenoemde bedrag vanaf die bedryfsbates afgetrek word, beloop die bedryfsbates slegs R2 384 834. Die verhouding tussen bates en laste is dan 1 : 26.65. Indien die 2010/11 finansiële state (Statement of Financial Performance) ontleed word, is dit skokkend dat die heffings uit dienstegelde slegs R32 047 088 beloop terwyl die salarisse vir die jaar R33 198 270 beloop. Die dienstegelde kan nie die salarisse betaal nie. DAAR IS GROOT FOUT BY TSANTSABANE MUNISIPALITEIT EN SAL DAAR DRINGEND ondersoek ingestel moet word of alle debiteure rekenings ontvang en of die tariewe korrek toegepas word. Geen kapitaal projekte kan onderneem word nie aangesien kontant aangewend moet word om bedryfsuitgawes te dek soos salarisse en lone, herstel en onderhoud op paaie en strate, water- en riool netwerke. Tans het die finansiële posisie so versleg dat slegs salarisse betaal kan word en geen onderhoud op infrastruktuur gedoen word nie. Tsantsabane Munisipaliteit sal vêrder alle uitstaande skuld wat nie vorderbaar is nie moet afskryf as slegte skuld. Die voorsiening vir slegte skuld behoort so aangepas te word dat debiteure wat ouer as 90 dae is, gedek kan word. Tsantsabane Munisipaliteit as n lopende saak word bevraagteken. Die Raad en Bestuur moet bogenoemde aangeleentheid in n baie ernstig lig beskou. Jaar-na jaar word daar kennis geneem van swak resultate sonder enige verbetering. Die Raad moet aksie neem teen swak resultate. Tsantsabane Munisipaliteit kan sy situasie verbeter. Die begroting vir 2012/13 is nie befonds nie en sal daar daadwerklik na die kontantvloei gekyk moet word. Die Raad en Bestuur sal n plan van aksie moet opstel hoe die 2012/13 begroting finansier gaan word. Daar wag vir die Raad en Bestuur groot uitdagings om die finansies van Tsantsabane Munisipaliteit op n gesonde voet te kry.

OPSOMMING 2011/12 2012/13 Salarisse en lone R 39 706 158 R 44 968 017 Algemene uitgawes R 49 537 426 R 52 555 213 Herstel en Onderhoud R 3 227 188 R 5 251 867 Rente en waardevermindering R 3 442 493 R 18 898 969 Bydraes R 6 308 579 R 12 086 026 R102 221 844 R133 760 092 Inkomste R106 314 518 R 97 367 054 Surplus(Tekort) R 4 092 674 (R36 393 038) Kapitaal uitgawes R109 306 106 R 72 296 000 Die tariewe is met gemiddeld 11.35% aangepas. Die werklike inkomste genereer nie soos begroot nie en is die inkomste konserwatief bereken. Dit help nie ons toon inkomste wat nie werklik gaan realiseer nie. Die begroting moet reg befonds word. SLOTSOM Die begroting moet in die Nationale Tesourie formaat opgestel word. Genoemde formaat sal so spoedig moontlik voltooi word en aan die Raad voorgelê word. Daar is baie agterstande in Tsantsabane Munisipaliteit wat in die volgende vier jaar aangespreek moet word. Die interne water- en riool-netwerk van Tsantsabane Munisipaliteit is baie oud en sal daar daadwerklik aandag aan die interne dienste gegee moet word. Die bestaande infrastruktuur moet behoorlik onderhou word. Die paaie en strate moet gereeld herseël word. Geld moet nie op die nice to have spandeer word nie, maar werklike dienslewering moet aangespreek word. Die Raad het n omkeer strategie goedgekeur. Hierdie omkeer strategie MOET uitgevoer word. Daar lê vir die Raad, en senior amptenare groot uitdagings voor in die volgende vier jaar. Nasionale Tesourie het regulasies afgekondig wat vanaf 1 Julie 2009 in werking getree het. Genoegsame personeel moet na die Budget and Treasury afdeling toegewys word sodat werk betyds afgehandel kan word soos vereis deur Nasionale Tesourie.

Geen interns is vir die jaar aangestel nie. Geen CFO is aangestel nie. Vakante posisies in die Finansiële afdeling is nog steeds nie gevul nie. Die pos Direkteur Tegniese dienste is vakant en nog nie aangestel nie. Die Munisipale Bestuurder se kontrak eindig aan die einde van Mei 2012 en moet genoemde onsekerhede uit die weg geruim word. Indien die Raad n persoon aanstel sonder die nodige kwalifikasies en ondervinding sal die doelwit van die Nasionale Regering nie bereik word nie. Tsantsabane Munisipaliteit moet werk na n ongekwalifiseerde oudit verslag en moet die basiese dinge korrek gedoen word. Die Raad, Bestuur en alle amptenare moet n voorbeeld vir die gemeenskap wees. Daar moet goeie werk etiek en trots by die werknemers gevestig word. Alle Raadslede en amptenare se dienste rekenings moet betaal word alvorens daar na die publiek gekyk word. Dissipline moet in die werkplek gevestig word en goeie kommunikasie tussen werkgewer en werknemer moet nagestreef word. Vêrder moet daar op n gereelde grondslag met publiek gekommunikeer word. Goeie verhoudings met die mynhuise is van kardinale belang vir die munisipaliteit en ontwikkeling in die regsgebied van Tsantsabane Munisipaliteit. Tsantsabane Munisipaliteit moet n omgewing skep waar dit maklik is om n besigheid te bedryf en om werksgeleenthede te skep. Die doelwit van die Nasionale regering met werkskepping moet nagestreef word. Dankie