27 FEBRUARY 2018
Honourable Speaker,
Deputy Mayor,
Honourable Councillors,
Municipal Manager,
All officials present,
Members of the Media,
Ladies and Gentlemen,
Sanibonani, good morning
Mr Speaker, it is the first time we meet as this body since the passing of one of the longest serving members of this Council, our beloved late Chief Whip Cllr Mashimane. May I request we all stand to observe a moment of silence in his memory

Mr Speaker, allow me to go back to the business of the day; to present the Adjustment Budget for 2017/2018.
As we consider this budget, we must be mindful that we do so under serious challenges; someof which are:
  • the ongoing difficulties in the national and local economy;
  • aging and poorly maintained roads and electricity infrastructure;
  • the need to reprioritize projects and expenditure within the existing resource envelope given the cash flow realities and declining cash position of the municipality;
  • increased cost and electricity (due to tariff increases from Eskom), which is placing upward pressure on service tariffs to residents. As we know, continuous high tariff increases are not sustainable – because in the long run they will no-longer be affordable;
  • wage increases for municipal staff and councillors that exceed consumer inflation, coupled with the need to fill critical vacancies;
To overcome the above we need to work together, as diverse we are. We need to work together in our roles in the business sector, in unions and in the various social formations. We must be reminded of what our State President Mr Cyril Ramaphosa said in his watershed State of the Nation Address earlier this month; when correctly pointed out that South Africa needs to confront the demon of corruption amongst others, in order to realise the vision of radical socio – economic transformation that we so desperately need.
With this in mind ladies and gentlemen, and within the limited resources at our disposal, we need to keep going forward because we have an obligation to change the lives of our people for the better.
Mr Speaker, Ladies and Gentlemen, let me remind this noble house that in terms of section 28 of the MFMA an adjustment budget may be tabled to Council at any time after the mid-year budget and performance assessment, but no later than the 28 February in a current year. The mid-year budget and performance assessment exercise, which was conducted in terms of Section 78 of the MFMA indicated that it is necessary for this Ray Nkonyeni municipal Council to consider an adjustment budget.
Mr Speaker and fellow councillors, the adjustment budget I am tabling this morning is split into two categories; the Operating and Capital Budget:
In so far as the operating budget is concerned, the main adjustments are as a result of the following:
Revenue – the revenue in the current year has grown to R448 million. This is largely due to increased tariffs, in particular the electricity tariff as determined by NERSA.
Salaries and allowances for staff and councillors – the total salary costs amount to R400 million, or 38% of the budget. The merger of the two former municipalities has had an impact in this regard.
Repairs and maintenance – repairs and maintenance comprises of amongst others the purchase of fuel, diesel, materials for maintenance, potholes, cleaning materials and chemicals. This group of expenditure has been prioritized to ensure sustainability of the municipality’s infrastructure. Included in the budget for repairs and maintenance, R29.4million relates to potholes and roads preventative maintenance. The roads rehabilitation programme amounting to R15 million has also been considered in the capital budget. The appropriation against this group of expenditure equals 5.3 per cent.
Mr Speaker and honourable councillors, the capital budget is financed through grants such MIG, Housing Grant, Provincial Treasury, the Department of Transport, Other Grants as well as internal funding.
In approaching the adjustment budget we propose to slightly reduce the internal departmental capital budget so as to ensure that the municipality secures reserves for future use. In terms of the cluster capital budget, there is a noticeable increase of just over R10 million. This is largely due to a re-prioritisation of funds to projects which will serve to benefit community needs on the ground.
For the benefit of our communities let me summarise how the adjusted capital budget has been allocated, in line with our established cluster approach:
Cluster 1 (Wards 30 to 36) R6 million, six hundred and sixty thousand rand
Cluster 2 (Wards 7, 8, 9 and 29) R3 million, four hundred and eighty thousand
Cluster 3 (Wards 1, 2, 6, 10, 11 and 19) R15 million, seven hundred and twenty one thousand, nine hundred and thirty four rand
Cluster 4 (Wards 3, 5, 25, 26, 27 and 28) R22 million, nine hundred and one thousand, six hundred and twelve rand
Cluster 5 (Wards 21 to 24) R7 million, three hundred and twenty thousand, two hundred and thirty nine rand
Cluster 6 (Wards 4, 17, 18, and 20) R39 million, five hundred and ninety six thousand, eight hundred and two and
Cluster 7 (Wards 12 to 16) R3 million, eight hundred twenty thousand rand
The Municipal Wide Projects are adjusted to total:
R40 million, one hundred and twenty three thousand, seven hundred and fifty four rand
The Departmental Capital is adjusted to:
R3 million, three hundred and twenty five thousand
Mr Speaker let me conclude by indicating that with this adjustment budget we are attempting to fulfill the vision envisaged by our founding fathers when they declared in the Freedom Charter that South Africa belongs to all who live in it, black and white.
In this year when we remember the iconic life of our Isithwalandwe Nelson Mandela, let us remember that it was he who said at his inauguration as the first president of a democratic South Africa;(quote) we understand it still that there is no easy road to freedom. We know it well that none of us acting alone can achieve success. We must therefore act together as a united people, for national reconciliation…for the birth of a new world.” Unqoute.
These words ring true today as much as they did back in 1994. Let us remember that what we do today, we do not for ourselves but for the entire people who reside in this beautiful part of the country.
And with those few words, I thank you