METSIMAHOLO LOCAL MUNICIPALITY - MFMA

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DRAFT EXTRACT FROM THE MINUTES

SPECIAL COUNCIL MEETING

(NO. 8 OF 2019/20)

DATE: FRIDAY, 26 JUNE 2020 TIME: 14:00

VENUE: VIRTUAL MEETING ON MICROSOFT TEAMS:

TABLET, CELLPHONE, LAP TOP, OR

DESK TOP COMPUTER

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Draft: EXTRACT Minutes Special Council (No. 8 of 2019/20) – 26 June 2020 Page 1

DRAFT EXTRACT FROM THE MINUTES OF THE EIGHTH SPECIAL COUNCIL VIRTUAL MEETING (NO. 8 OF 2019/20) HELD ON FRIDAY, 26 JUNE 2020 AT 14:00

PRESENT

COUNCILLORS COUNCILLORS

1 K T Mabasa Speaker 22 T Mofokeng 2 S L Tshongwe (Ms) Executive Mayor 23 F J van der Merwe 3 V L Mashia Council Whip 24 J J Barnard

4 J M Molawa MPAC Chairperson 25 S M Matwa

5 N P Mokoena (Ms) 26 G S Burger

6 M S Poho 27 P Mohapi

7 L S Semonyo 28 J J Grobbelaar

8 M J Malindi 29 L J van Heerden

9 L Fisher 30 Z J Zwane

10 F Mosokweni 31 M T Mbana

11 K B Mofokeng 32 R Meyer (Ms)

12 L Makhefu 33 T du Toit

13 S J Nteso 34 J L Tsotetsi (Ms)

14 N M Mtshali (Ms) 35 M E Maseko

15 S S Kobo 36 L L Nhlapo

16 G B Nnune (Ms) 37 T J Taats

17 M M Telane (Ms) 38 T A Motaung

18 N N Dywili 39 T M Motloung

19 P M Mokoena (Ms) 40 M G Leotlela (Ms)

20 A K Mare 41 P M Mahlaela (Ms)

21 M Nkheloane (Ms) OFFICIALS ON DUTY

NAMES DESIGNATION

M Mathe Acting Municipal Manager

B Molotsi Acting Director: Organisational Development & Corporate Services P Qulunga (Ms) Financial Advisor

Dr. G Alberts Manager Communications T Thulo Manager Office of the Speaker

G Nhlapo Manager: ICT

L Mofokeng Assistant Manager: ICT

A M Seliane (Ms) Acting Manager: Administration Services / Scribe M Mnguni Researcher: Office of the Speaker

D Mofokeng Technician: ICT

N S Msimanga (Ms) Mayoral Committee Administrator / Scribe T Y Mkhumbeni (Ms) Language Practitioner: English / Sesotho R Ramokotjo-Tau (Ms) Communications Officer

INVITEE

NAMES DESIGNATION

A Vorster (Ms) Manager: Budget and Financial Statements

ABSENT WITH AN APOLOGY ABSENT WITHOUT AN APOLOGY Mr T Manale Administrator S Motjeane (Ms) Councillor

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I N D E X

DRAFT & EXTRACT: MINUTES - SPECIAL COUNCIL MEETING: 26 JUNE 2020 (NO. 8 OF 2019/20)

ITEM PAGE

1 OPENING 1

2 APPLICATION FOR LEAVE OF ABSENCE 1

3 OFFICIAL ANNOUNCEMENTS 1

4 Oversight report in respect of the 2018/19 Annual report: Metsimaholo Local Municipality

5 Final reviewed 2020/2021 reviewed Integrated Development Plan (IDP)

6 2020/2021 Medium Term Revenue and Expenditure Framework (MTREF) report and budget policies

7 2019/2020 Revised Service Delivery and Budget Implementation Plan (SDBIP)

9 CLOSURE

* * * * * * * * * * * * * * *

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COUNCIL DOD&CS ADMIN M I N U T E S

ITEM 1 OPENING

The Speaker, Councillor K T Mabasa welcomed all present. He then conducted a roll-call to ensure that a quorum was constituted before declaring the meeting officially opened, thereafter requested the meeting to observe a moment of silence.

There was a technical challenge with Microsoft Teams which lead to the meeting being moved to 14:00. The Speaker, apologized for the inconvenience caused and appreciated cooperation from all Councillors.

In his opening remarks, the Speaker, Councillor K T Mabasa requested that the sequence of the items as they appear on the agenda be changed as follows:

- Item 8 (Budget related policies form part of the MTREF report)

- 2020/2021 Draft Service Delivery and Budget Implementation Plan (SDBIP) be discussed as the last item.

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ITEM 2

APPLICATION FOR LEAVE OF ABSENCE

RESOLVED FOR

ATTENTION That leave of absence from the eighth Special Council virtual meeting

(No. 8 of 2019/20) held on Friday, 26 June 2020 at 14:00 be granted to Councilor L Fisher who requested to be late as well as to the Administrator, Mr T Manele.

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ITEM 3

OFFICIAL ANNOUNCEMENTS

3.1 The Speaker, Councillor K T Mabasa made the following announcements:

3.1.1 That Councillors should take note that Corona Virus does exist and it kills. He then reported that there was a Fezile Dabi District Municipality employee who tested positive for COVID-19 and she works closely with his wife. He further explained that the Department of Health advised him to self-isolate and get tested and further reported that the sixth floor offices will be deep cleaned and disinfected over the weekend.

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3.1.2 That it be noted that all Councillors received tablets and were also receiving cellphone allowances on monthly basis. Councillors were urged to refrain from using Metsimaholo WiFi and make use of their tools of trade in order to comply with the rules and regulations of the Disaster Act, because Metsimaholo WiFi was being overloaded thus leading to poor quality of the virtual meetings.

3.2 There were no official announcements from the Executive Mayor and the Acting Municipal Manager.

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ITEM 4

OVERSIGHT REPORT IN RESPECT OF THE 2018/19 ANNUAL REPORT:

METSIMAHOLO LOCAL MUNICIPALITY

ATTENTION 1 That the Oversight report be adopted.

2 That the 2018/19 Annual report be approved without reservations.

3 That the 2018/19 Annual report and the Oversight report be submitted to the Provincial Legislature as required by the Municipal Finance Management Act 56 of 2003.

ITEM 4.1

TABLING OF THE BUDGET SPEECH BY THE EXECUTIVE MAYOR The Speaker, Councillor K T Mabasa handed over to the Executive Mayor, Councillor S L Tshongwe to deliver the budget speech on the proposed 2020/2021 budget.

The Executive Mayor, Councillor S L Tshongwe read the budget speech that was aligned to the 2020/2021 Integrated Development Plan to the meeting.

That note be taken that the 2020/2021 Budget Speech was also broadcast live on the Metsimaholo Facebook page.

COUNCIL MPAC COUNCIL MPAC COUNCIL MPAC

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COUNCIL AMM MIDP/PMS COUNCIL AMM MIDP/PMS ITEM 5

FINAL REVIEWED 2020/2021 REVIEWED INTEGRATED DEVELOPMENT PLAN (IDP)

ATTENTION 1 That cognisance be taken of the contents of the report.

2 That note be taken that Council approved the Draft 2020/2021 Integrated Development Plan (IDP).

ITEM 6

2020/2021 MEDIUM TERM REVENUE AND EXPENDITURE FRAMEWORK (MTREF) REPORT

ATTENTION That Council approved the annual budget of the municipality for the

financial year 2020/2021 and 2022/2023 as set out in the

2020/2021 Medium Term Revenue and Expenditure Framework (MTREF) Report, subject to the following resolutions:

COUNCIL

That the Council in terms of Section 24 of the Municipal Finance Management Act (Act 56 of 2003) approves the following resolutions:

COUNCIL

1 That the annual budget of the municipality for the 2020/21 financial year and the multi-year and single-year capital appropriations as set out in the following tables:

Council

1.1 Budgeted Financial Performance (revenue and expenditure by standard classification) as contained in Table 18 on page 91;

1.2 Budgeted Financial Performance (revenue and expenditure by municipal vote) as contained in Table 19 on page 93;

1.3 Budgeted Financial Performance (revenue by source and expenditure by type) as contained in Table 21 on page 96; and 1.4 Multi-year and single-year capital appropriations by municipal vote

and standard classification and associated funding by source as contained in Table 22 on page 99.

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2 That the financial position, cash flow budget,

reserve/accumulated surplus, asset management and basic service delivery targets are noted as set out in the following tables:

Council

2.1 Budgeted Financial Position as contained in Table 23 on page 102;

2.2 Budgeted Cash Flows as contained in Table 24 on page 104;

2.3 Reserves and accumulated surplus reconciliation as contained in Table 25 on page 105;

2.4 Asset management as contained in Table 26 on page 107; and 2.5 Basic service delivery measurement as contained in Table 27

on page 112.

3. That the Council, in terms of Section 75A of the Local Government: Municipal Systems Act (Act 32 of 2000) considered the tariffs with effect (billing) from 1 July 2020:

Council

3.1 The tariffs for property rates – as set out on page 13-14 3.2 The tariffs for electricity – as set out on page 17-20 3.3 The tariffs for the supply of water – as set out on page 15-17 3.4 The tariffs for sanitation services – as set out on page 21-23 3.5 The tariffs for solid waste services (cleansing) - as set out on page

23-24

4. That the Council, in terms of 75A of the Local Government:

Municipal Systems Act (Act 32 of 2000) considered with effect (billing) from 1 July 2020 the tariffs for other services, as set out on page 28 to 77 respectively.

Council

5 That the capital projects to be financed from own funds (accumulated surplus) be implemented subject to the improvement of the cash flow position of the Municipality and subject to affordability

Council MM Directors

6. That note be taken that the Budget Related Policies were reviewed for approval by Council.

Council MM Directors 7. That the financial lease of R18.9 million plus VAT to finance the

purchase of vehicles to improve service delivery be implemented in terms of MFMA.

MM CFO

8. That the Council approves that the municipality to raise an overdraft facility of R10 million with its primary bankers for utilisation in the 2020/2021 financial year.

Council MM CFO

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9. That the option investigated by the Municipal Manager to take up external borrowing of R41.3 million to finance the installation of services at 122 un-service stands in Vaal-park.

Council MM DTIS CFO 10. That the option investigated by the Municipal Manager to take up

external borrowing of R155 million (period of 3 years implemented) to finance the rehabilitation / resurfacing of roads.

Council MM DTIS CFO 11. That Operation Patala and Revenue Enhancement Strategy be

submitted to Council and be implemented in order to obtain 83%

collection rate.

Council MM CFO 12. That note be taken that Public Participations were done via social

media, website, pamphlets and notice in newspapers.

Council Speaker

Man: Communications

CFO 13 That the community be informed through e-mails and social media

of the property Rates Policy, Indigent Policy, Tariff Policy and Debt Collection and Credit Control Policy.

COUNCIL SPEAKER MM

CFO 14 That a report regarding fleet of the municipality be submitted to

Council.

MM DTIS DOD&CS 15 That vacancies for 2020/2021 be phased in during the year. MM

DIRECTOTS 16 That no interest on outstanding accounts for services (excluding

rates) should be charged in July and August 2020.

COUNCIL MM

CFO 17 That the approved indigent households receive 10kl free water for

July and August 2020.

COUNCIL MM

CFO 18 That a policy for pauper burials be submitted to Council. AMM

DSS 19 That all Budget related policies as attached to the report be

approved.

COUNCIL CFO 20 That note be taken that Councillor T du Toit from FF+ was against

the approval of the 2020/2021 Medium Term Revenue and Expenditure Framework (MTREF).

COUNCIL

ITEM 7

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COUNCIL AMM

MIDP&PMS COUNCIL AMM

MIDP&PMS AMM

MIDP&PMS 2020/2021 DRAFT SERVICE DELIVERY AND BUDGET IMPLEMENTATION PLAN (SDBIP)

ATTENTION 1 That the Council takes note of the 2020/2021 Draft Revised

Service Delivery and Budget Implementation Plan (SDBIP).

2 That the 2020/2021 Draft Service Delivery and Budget Implementation Plan (SDBIP) be approved by Council.

3 That the 2019/2020 Revised Service Delivery and Budget Implementation Plan (SDBIP) be made public.

ITEM 8 CLOSURE

The Speaker, Councillor K T Mabasa thanked all Councillors for their participation thereafter declared the meeting officially closed.

THE MEETING CLOSED AT 16:52 APPROVED BY (NAME) : SIGNATURE: CHAIRPERSON :

DATE :