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MAYOR OF KOPANONG LOCAL MUNICIPALITY, CLLR XOLILE MATWA AT THE TABLING OF THE 2021/2022
IDP/BUDGET
Acting Speaker Exco Members Fellow Councillors
The Municipal Manager and all management team present here
Distinguished guests Community Members Molweni!
Honourable Speaker,
Special greetings to all the essential workers:
Our beloved community members, the tabling of this budget stands out in history as a product of a compulsory new way of doing things.
Because of the COVID-19 pandemic, we have had to adapt to a new shift of delivering services to our people. I’m happy that despite the global COVID-19 challenges, technology still allows us to get in touch with our people.
Although we could not physically go out to all Wards to seek inputs from our stakeholders and community members, it gives me pleasure to note that the Municipality has succeeded in using various modern
communication channels to consult with our people. I can now proudly say that the budget I’m presenting here today is the joint product of the Municipality, our community and all our stakeholders.
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The budget I am presenting here today was prepared in line with our Integrated Development Plan and in terms of the Municipal Finance Management Act No 53 of 2003. This budget is presented in line with the assumptions and needs of our people, also taking into consideration the limited resources at our disposal.
Speaker, Before I present the budget, I feel that I would have not done my job diligently if I don’t touch on the issue of drug abuse by the youth of Kopanong, specifically Bethulie and Springfontein, where in the latter we recently lost a young person who was confirmed to have succumbed to a drug overdose. This is a nationwide concern and as Kopanong we cannot just fold our arms and become spectators. I urge the people of Kopanong to speak with one voice and say NO TO
DRUGS in KOPONONG.
We also urge our law enforcement agencies to be very harsh on DRUG dealers who are selling drugs to our children and our Communities.
The challenges of crime, drug abuse, HIV and Aids are a thorn in the flesh for our communities. Each one of us must play a role in making sure that these challenges are resolved. I’m happy that our
stakeholders, government departments and the private sector are also working with us to fight these challenges, particularly the Office of the Premier and Social Development.
Speaker, As we have already indicated we are tabling this Budget when our Country is still on a national lockdown which has a negative impact on the normal operations of the institution, particularly, on legislative requirements the Municipality did not consult with the community at large during the 1st draft but that has been corrected during the second round of the consultative processes of the IDP and Budget also published our IDP and Budget documents on our website for a period of 21 days as required by legislation for public comments and inputs. The Municipality could not collect the anticipated revenue and this is anticipated to continue and overflow to the 2020/2021
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budget. This situation has made it difficult for the Municipality to prepare a funded budget; However the Municipality had to make difficult choices in prioritizing its expenditure. The fact the
Municipality is unable to set aside a budget for maintenance will result in continued service delivery burdens.
On service delivery Acting Speaker, we boldly commit ourselves as this institution that we will allocate the much needed sites that meet the RDP standards to our communities.
1. On SMMEs
Kopanong Local Municipality has been working closely with other sector departments in order to access the Support Packages in the form of SMMEs and Spaza shops incentives schemes. The relief programme spearheaded by DESTEA is currently underway with some of the SMMEs having benefitted to the extent of
R10 000.00 per SMME.
PROGRESS.
The formalisation of all SMMEs and informal traders’ process by Kopanong Local Municipality and DESTEA in ensuring that they are registered with CSD, SARS as well as compliance with
Kopanong Standard Business Regulations By-laws and the
Standard Health Regulations has been completed after submission of 140 applications to SEDA and SEFA for existing and aspiring SMMEs within Kopanong Local Municipality. We are committed
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to prioritising local businesses, a clear demonstration of which is preferring our locals for procurement since the advent of the COVID-19 pandemic.
The pandemic did not only expose our vulnerability health-wise, but has also exposed that most of our local SMMEs were not benefitting from the Municipality as they should, owing largely to most of them being non-compliant. Of all service providers who were appointed for the procurement of PPE since the national lockdown, a few service providers from Kopanong Local
Municipality benefitted. We have since created our own data-base to track and facilitate the growth and compliance of our SMMEs.
Kopanong Local Municipality has enlisted the support of
DESTEA on the review of the Business Regulation By-Laws, this is done to ensure stringent By-Law enforcement in order to curb the growing number of illegal businesses within our area.
Focus is on spaza shops, street vendors, manufacturers, informal automobile establishments including but not limited to hair salons and those involved in clothing and Textile.
On Agriculture, the first key economic driver in the
Municipality, Kopanong has already allocated 20 020 hectares of commonage land to emerging farmers.
These lease agreements have been entered into between
Kopanong and the farmers for the period 01 April 2020 to 01 April 2025.
With regards to the revitalisation of the Bethulie Dam Resort, the Deputy Minister for Forestry, Fisheries and the Environment (DAFFE) visited Bethulie Dam on 27 April 2021 for engagement with Kopanong Local Municipality and the Ikwezi team
regarding plans to revitalise the resort as a tourist attraction site.
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The project is being implemented through the District Development Model ( One Plan)
Ekasi kitchen in Jagersfontein will soon be operational after Kopanong Local Municipality had offered its management a site to operate from whilst DESTEA has ensured provision of
electricity and a container.
As a commitment, we encourage our local business people in Kopanong who are in the construction industry to have the necessary documentation needed for bidding, so that they can participate and enjoy first preference. We further commit to engage with the appointed contractors to consider the local ones for Sub-Contracting, where such a threshold is satisfied for such.
Organisational Structures
Acting Speaker. The Municipality has had an expedition to fulfil its constitutional mandate to deliver basic services to Kopanong.
Municipal Council has developed a new organisational structure which is believed will assist in addressing the Municipal daily business and operational requirements in an attempt to improve quality service to its communities. All of the above exercises are made with the hope that this would bring stability, improve and advance service delivery.
The process of reorganising the structure underwent a consultative process with management and organised labour and was finally approved by Council on the 17th May 2021.
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2. Through Xhariep District Skills Development Forum a synergised and common Workplace Skills Plan (WSP) was developed and
submitted to LGSETA. All relevant stake holders, inclusive of labour component participated in the development of the WSP through a Training Committee and all the training needs for employees,
Councillors and the unemployed were identified and agreed upon. The minimum competency level report was also successfully submitted and approved by the Treasury.
Once the Municipality receives its mandatory grant as well as the discretionary grant applied for the funds would cater for the
empowerment and skilling of employees across the whole
Municipality, with training programs that will ensure that employees are competent enough to be able to perform their duties as expected;
3. The Municipality’s developed HR Strategy enabled Management to recognise the Municipal skills bank, its human capital shortcomings and enabled it to harness, nurture and retain internal skills by ensuring that employees are relevantly placed. At this juncture the Municipality is undergoing a process of placing, absorbing and promoting candidates across all municipal business units and the process takes into cognisance the following attributes to determine suitability of candidates:
1. Performance level;
2. Skill;
3. Education,
4. Relevant experience and 5. Personal Development.
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Acting Speaker: today we are tabling 2021/2022 Annual Budget in compliance with the requirement of MFMA, Act 56 of 2003 and also guided by many other policies and circulars.
On Human Settlement: Housing and Sites:
Acting Speaker: We would like to report back on the progress made since our tabling of the budget of 2020/2021. We commit the following:
allocation of sites to all residents of Kopanong Local Municipality
Mass classification houses(PHP Masa Kane)
Completion of BHG Projects(RDP)
On Site Allocations
1. Reddersburg : 514 Sites allocated
2. Edenburg: 114 Sites to be allocated(beneficiary identification) 3. Trompsburg: 80 Sites to be allocated- beneficiary identification 4. Fauresmith: 120 Sites allocated
5. Jargersfontein: 60 Sites to be allocated-beneficiary identification 6. Phillipollis: 260 Sites allocated
7. Gariepdam: 16 Sites allocated
8. Bethulie: 200 sites that will be allocated currently still doing identification of beneficiary
9. Springfontein: 528 Sites will be allocated soon. Currently the Contractor is on site and is busy building the infrastructure for Water and Sewerage.
PHP mass classification Project
First Phase
Fauresmith: 67 Houses- 60 Complete
Jargersfontein : 115 Houses- 20 Foundations Complete
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Edenburg: 61 Houses -48 Complete
Reddersburg: 23 Houses- 23 Foundations only Tromspburg: 35 Houses- No progress
Second Phase
Phillipolis: 21 Houses- project started last Month Springfontein: 27Houses Project started last Month Bethulie: 7 Houses- no progress
NB! Our Challenge is still on infrastructure, new township establishments and town registers.
Currently Human Settlements is assisting us in the following towns Fauresmith : River Side- township establishment and town register Reddersburg: Mokai Moletsane- Infrastructure Water and Sewerage Springfontein: New Ext 1- infrastructure –Water and Sewarage
NB! Other towns will be attended in the next financial year of the department based on the approval of projects.
Acting Speaker: Fellow Councillors, Ba ahi Ba Kopanong let me give progress on capital projects for the financial year 2020/2021, and those outstanding will be overlapping to the next financial year 2021/2022.
REPORT BACK ON 20/21 PROJECTS
Let me give you a progress report on the implementation of some of the projects we announced last year for the 2020/2021 financial year.
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Trompsburg: Upgrading of a water pipe length of 550m in Madikgetla: Completed.
Upgrading of the sewer pump stations in Springfontein:
Construction stage.
Philippolis: Upgrading of Waste Water Treatment Works:
Construction stage
Jagersfontein treatment works-Mechanical: Completed.
:. Bethulie: The re-alignment of 1km reticulation pipeline in Vergenoeg and Manholes together with 3km pumping main.:
Construction phase.
The 2021/2022 financial year projects are as follows:
Trompsburg: Permitting and closure of existing disposal site and construction of a new disposal site(land fill site)
Bethulie/Lephoi: Construction of 600m paved road and storm water channels
Gariepdam: Design of a waste transfer facility
The projects that are overlapping from 2020/21 to 2021/22 financial year are:
Upgrading of the sewer pump stations in Springfontein
Bethulie: The re-alignment of 1km reticulation pipeline in Vergenoeg and Manholes together with 3km pumping main.
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The new projects that are for 2021/22 financial year are:
The Municipality will be prioritising the implementation of projects that were delayed by the COVID-19 pandemic and completing unfinished projects.
Honourable Speaker, for 2019/20 financial year, our Municipality was allocated (R3, 2 Million) for electrification and the allocation is apportioned as follows:
Fauresmith 86 household connections Edenburg Mini Sub-Station
The Projects are 100% complete. These projects were delayed due to COVID-19 pandemic, however the Municipality and Centlec managed to complete both projects in March 2021.
For 2020/21 financial year, Kopanong received an allocation of R 2 159 000.00, and these projects are at 60 percent completion. All the Electrification projects are still running and are anticipated to be completed in the next financial year.
Projects identified are as following:
Municipality Town Quantity Rate Funding
Kopanong
LM Trompsburg Main Sub 1
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300 R1 424100,00 Kopanong
LM Edenburg Infill. 17 7700 R130 900,00
Kopanong
LM Fauresmith infill 20 7700 R154 000,00
Kopanong LM
Springfontein
Connection 25 18000 R450 000,00
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TOTAL R2 159 000
In this maiden financial year of 2021/2022, no allocation was made for electrification.
Honourable Speaker, the following EPWP projects were implemented in this financial year of 2020/2021 under EPWP.
Kopanong’s allocated Expanded Public Works Programme is still underway:
EPWP PROJECTS (INCENTIVES) 2021-2022
Honourable Speaker, the following projects will be implemented in this financial year of 2021/2022. Under EPWP Kopanong
allocated Expanded Public Works Programme is R 1 054 982.00 and this will entail various projects that alleviate poverty by creating employment but also seeks to augment service delivery such as the cleaning of landfill sites, storm water channels and cemeteries and household profiling just to name a few. The Following Towns will be the beneficiaries of EPWP 2021/2022 Projects:
Faure smith
Jergersfontein
Edenburg
Trompsburg
Phillippolis
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Acting Speaker, 2021/2022 financial year. It must therefore be noted that the Municipal Infrastructure Grant (MIG) will be allocated R 21 494 000, 00. (Twenty one million four hundred and ninety four thousands rands)
INFRASTRUCTURE PROJECT RBIG (REGIONAL BULK INFRASTRUCTURE GRANT)
Acting Speaker: NB! The Department of Water Affairs has allocated R3, 000,000.00 for the Jagersfontein/Faure smith Bulk water scheme in order to address the water crisis in these areas and projects are as
Upgrading of Jaggersfontein water treatment plant Phase 2 the project is now at practical completion stage
INFRASTRUCTURE PROJECT WSI (WATER SERVICES INFRASTRUCTIRE GRANT) 2021-2022
Acting Speaker Department of Water Affairs has also allocated R32 000 000.00 (Thirty Two Million Rands):
1. Phillippolis waste water treatment works
2. Prepaid water meters(feasibility study and pilot project) 3. Upgrading of asbestos and steel infrastructure for water and
sanitation,
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OPERATING REVENUE FRAMEWORK
Acting Speaker ,the 2021/22 MTERF budget has been prepared during difficult times where the economy of the country has been badly affected by COVID -19 pandemic lockdown, which contributed to the closure of some businesses in the small and impoverished
Municipalities like Kopanong Local Municipality, resulting in the rate of unemployment increasing. The impact of this unemployment is witnessed by the number of indigent applications that the
Municipality has received. The Municipality only survived in the 2020/21 financial year due to the financial assistance that National Treasury provided, which was a once off bail out and did not factor through 2021/22 financial year.
The loss of income by the majority of the community members and closure of some businesses, has impacted on the ability to pay for services, thereby negatively affecting revenue collection. The
anticipated third wave of COVID-19 poses further risks in the plans of the Municipality to implement measures that seek to improve revenue collection.
Acting Speaker, Local Economic Development will be the only long lasting solution to improve the lives of our people and alleviate
poverty in the Kopanong Local Municipality. However, the
Municipality is situated in the most rural area of the Province, with its most economic activities being farming, which has its own
challenges.
Hard choices had to be made in compiling this budget, especially with regard to service delivery issues and infrastructure development
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amongst the nine towns. Furthermore, balance had to be struck
between acquisition of new assets and maintenance of old assets. The Municipality is dependent wholly on the conditional grants to deliver its infrastructure.
The Municipality will continue with the implementation of cost containment measures, in the drive to focus the resources towards service delivery matters.
OPERATING REVENUE EXCLUDING GRANTS
The total operating revenue budget in 2021/22 financial year amount to Three Hundred and Thirty Three Million Eight Hundred and Sixty Five Thousand Rand, an increase of 10% compared to Three Hundred and Three Million Four Hundred and Thirty Eight Thousand Rand in 2020/21 financial year adjustment budget.
The Municipality anticipates to collect a total of Six Hundred and Sixty Nine Million Six Hundred and Thirty Thousand Rand for the two outer years. Our main sources of revenue that informed this budget are as follows:
• Water – the average increase on water tariffs is 31%. This increase is the results of the
combination of the introduction of the basic levy of R120 and tariff increase of 15%
Based on cost recovery this has increased the anticipated water revenue from Thirty Three Million Seven Hundred and Sixteen Thousand Rand in 2020/21 financial year to Forty Eight Million Eight Hundred and Twenty Thousand Rand in 2021/22
financial year.
• Property Rates – the average increase on property rates tariffs is 22%, resulting in an increased anticipated property rates from
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Thirty One Million Two Hundred and Sixty Thousand Rand in 2020/21 financial to Forty Million One Hundred and Seventy Two Thousand Rand in 2021/22 financial year. This increase is informed by the drive of the municipality to align with the legal prescripts. The municipality has different groups of consumers, some tariffs were decreased and some increased to achieve this alignment. Details are contained in the tariff list as published.
• Sanitation – the average increase on sanitation tariffs is 16%, informed by the decreases and increase in tariffs among the different groups of consumers in a drive to bring fairness and alignment by the municipality. The anticipated revenue in this regard is Twenty One Million Five Hundred and Twenty Seven Thousand Rand in 2021/22 financial compared to Twenty Million and Thirty Eight Thousand Rand in 2020/21 financial year.
• Refuse Removal - the average increase on sanitation tariffs is 6%, informed by the decreases and increase in tariffs among the different groups of consumers in a drive to bring fairness and alignment by the municipality.
• The anticipated revenue in this regard is Fifteen Million Nine Hundred and Sixty Eight Rand in 2021/22 financial year as compared to Thirteen Million Three Hundred and Seventy Rand in 2020/21 financial year.
• Electricity – the average increase on electricity tariff is 12% as guided by National Electricity Regulator of South Africa (NERSA). The anticipated revenue is Seventy Seven Million Five Hundred and Two Thousand Rand in 2021/22 financial year
OPERATING EXPENDITURE
Acting Speaker, the operating expenditure of the Municipality, excluding capital grants related expenditure is estimated at a total of One billion Two Hundred and Seventy Two Million Rand over a
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period of three years (MTREF). The details of this estimated amount per financial year is as follows:
• Four Hundred and Eighteen Million Nine Hundred and Eighteen Thousand Rand in 2021/2022;
• Three Hundred and Ninety Nine Million Eight Hundred Thousand Rand in 2022/2023; and
• Four Hundred and Fifty Eight Million Two Hundred and Seventy Four Rand in 2023/2024 financial years respectively.
The bulk of operating expenditure goes to employee costs amounting to One Hundred and Twenty Five Million Rand or 38% of total operating expenditure excluding non- cash items.
An amount of Forty Six Million Rands has been budgeted for as debt impairment and Thirty Million Rands for interest on outstanding debtors, together giving an indication of the difficulty to debt collection as well as the inability of the consumers to pay. This situation impacts negatively on service delivery. It is therefore important to have robust consumer awareness on the impact of not paying services.
CONCLUSION
Let me conclude my address by urging our community members to be safe from the COVID-19 pandemic at all times. Coronavirus is here and it will stay with us for a long time. Judging by the number of increasing positive cases in Kopanong, it is clear that we still have a long way to go in fighting this pandemic. Government has done everything possible to protect us but it is now in our hands to defeat this virus.
We can flatten the curve by practicing the highest form of hygiene, including sanitising and washing our hands with clean water and soap for 20 seconds, observing adequate social distancing, wearing of
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masks and regularly washing of the mask. Only go out when there is a need to do so – otherwise staying at home will save your life.
Honourable Speaker and Honourable Councillors, it has been a great journey of 15 years with Kopanong Local Municipality. It would however be a misrepresentation to say that the journey was rosy and devoid of difficulties. However, the road travelled was made that much more bearable by your continued support and the team effort that we have all exerted.
I wish each and everyone one of you well in your future endeavours and I rest confident that whichever space you finds yourselves in, you will excel because you went through the best preparatory school, which is Kopanong Local Municipality.
Finally, we thank all the essential workers who have been in the forefront since this pandemic hit us in March 2020. Some of them have lost their lives trying to save the lives of others. May their souls continue to rest in peace!
My humble plea is that let us all observe the lockdown regulations at all times. This too shall pass and one day, life will go back to normal again.
Lastly let me take this opportunity to thank all Councillors that served with me to this term of Council, also wishing all Councillors the best with the upcoming Local Government Elections. Let me thank the Municipal Manager and his team for the team work they have displayed during difficult times in our Municipality. Most
importantly, I unreservedly thank my family for their unselfishness in allowing me to serve the community of Kopanong.
