I am standing here today as the servant of the people of Metsimaholo Local Municipality who is sent to lead this community, and which is a call that I am honouring.

The Speaker of Council, Cllr. Lucas Fisher The Council Whip, Cllr. Fikile Mosokweni Members of the Mayoral Committee Honourable Councillors

The acting Municipal Manager, Mr Thomas Lindelo Mkaza Residents of Metsimaholo Municipal Area

Members of the Media Distinguished Guests Ladies and Gentlemen

Honourable Speaker

Even though in the recent past it had appeared that we were winning the fight against Covid-19, latest indications are that the fight is far from over. Our country and the world constantly face new corona virus variants and mutations. We remind our people to continue observing health protocols to protect themselves and their loved ones from this virus. The government has embarked on various phases of the vaccination rollout that seek to vaccinate healthcare workers, elderly adults, ordinary people and children. Although registration to be vaccinated is voluntary, we encourage our citizens to use this opportunity and register. However, the economic recovery that we all so dearly desire depends partly on vaccinating as many people as quickly as possible. This is to allow for increased tourism and other business activities, which will contribute to economic growth and job creation. In this regard, I would like to thank all our local health workers and volunteers who are working around the clock to make it happen.

However, as Metsimaholo Local Municipality even under these difficult and trying times, we remain focus and continue our commitment to ensure that basic services such as refuse removal, water and electricity are delivered to our people.

Local government in South Africa is assigned a crucial role of rebuilding local communities and environments, as the basis for a democratic, integrated, prosperous, and truly non-racial society. The Constitution of the Republic of South Africa (1996) mandates local government to: provide democratic and accountable government for local communities, ensure the provision of services to communities in a sustainable manner, promote social and economic development, promote a safe and healthy environment, and encourage the involvement of communities and community organizations in the matters of local government.

I am therefore challenging Council to reflect on how are we going to ensure that the Metsimaholo Local Municipality, fulfils the Constitutional mandate as reflected in section 152 and 153. We must be committed to further craft the developmental goals of Metsimaholo Local Municipality for the next five years, We are called upon to critically reflect on how are we going to resolve critical development challenges, that have been afflicting Metsimaholo Local Municipality for many years.

Honourable Speaker

The Municipality takes pride in serving the community as an extension of good governance and those decisions taken in the best interests of the people of Metsimaholo Local Municipality. There are of course challenges and achievements.

The challenges are not unique to Metsimaholo Local Municipality – and I am confident that with the existing leadership and collective wisdom of other political parties in Council, and the Administration- these challenges are not insurmountable. It is recognized that continued efforts must be placed on maintaining and improving existing performance in all areas. Every effort must be made to maintain a culture of service delivery and to maintain and enhance sound fiscal and administrative functioning at all costs. We and those that come after us will endeavour to ensure that our Municipality continues to perform, while providing the community with the required and expected levels of service delivery, local economic development, infrastructure development, fiscal control and sustainability and good governance within all spheres. Every effort will be made to meet and sustain community needs at all identified levels – as dictated and defined by the constraints of available infrastructure and financial resources.

As a municipality, it is incumbent upon the political and administrative leadership to provide what may be described as a vibrant local economy that is able to sustain financial independence and growth. By so doing it will be ensured

that both local enterprises and community members are and remain empowered – creating a community of motivated and capable individuals who are able to contribute towards the growth and sustainability of the community and the environment.

Mr Speaker

The main aim of any local municipality must focus to get the basics right. Therefore, what the Metsimaholo Local municipality must do:

1. Ensure there is clean water and a sanitary environment for every
2. Provide a hygienic environment to live and
3. Give residents their power
4. Create and maintain public spaces for all to enjoy

Furthermore, as a local municipality Metsimaholo must Bring jobs and investment to the local economy. Metsimaholo will focus first on getting the basics right, as the foundation to bringing in investment and jobs. Beyond that we are committed to improving the business environment by making it easier to do business.

Our focus as an institution is guided and driven by the Integrated Development Plan (IDP), which is developed as a five (5) year plan (aligned to the current term of office). This is revised and updated annually while taking current resources (detailing annual strategic objectives) into account. The strategic goals and priorities are cascaded into the strategic and operational plans of all directorates and related employee scorecards.

By so doing, it is ensured that every effort at any point in time is constantly being made to achieve the required targets and desired outcomes. The day to day struggles of ageing and poor infrastructure and limited financial and human resources continues to place strain on the ability of Metsimaholo Local Municipality to provide and improve its service delivery. These challenges are clearly reflected within service delivery initiatives and every effort is being made to improve service delivery performance at every level.

Care must be given that correct billing is done, and consumers receive the correct bills. Funds must be made available to implement alternatives for consumers to pay bills. Ease of access to payment options

No Unauthorized Expenditure. Strict controls on budget spending. Financial System to block overspending. Virement allowed only in extreme circumstances.

The municipality has in place a detailed Revenue Enhancement Strategy which must be rolled out in this financial year. This must be owned by everyone in the municipality. Very important that it is followed up on a monthly basis

Honourable Speaker, Council Whip and Honourable Councillors. Municipal Manager, section 56 managers and members of the community. It is a privilege to submit the final budget for the 2022/2023 to 2025/2026 financial years to Council for consideration and approval. Today’s comment is supplementary to and should be read together with the budget speech I delivered during the Council consideration of the draft budget.

Today I focus on the final steps taken to finalise the budget for five years. I previously emphasised matters that had an influence on the compilation of this budget and the IDP. On that occasion, emphasis was on the threats, challenges and opportunities currently impacting the Municipality, the Council and the budget.

I will not repeat myself but reiterate that environment in which the Municipality and Council currently operate is significantly different from the environment of the predecessor or previous Council.

Honourable Speaker, Honourable Councillors and members of the public, our 2022/2023 to 2025/2026, Budget we are presenting today is presented under challenging times with regard to the economic outlook of the Republic of South Africa, the Province and indeed that of Metsimaholo Local Municipality.

Milestone achieved

Honourable Speaker

The municipality already focused on the areas below as key image turnaround priorities for MLM:

• Strengthening of partnerships with key stakeholders and establishment of sustainable
• Change of the MLM Image and improve organisational
• Facelift of the Municipality through refurbishment and repair of municipal
• Improve CBD outlook  through cleanliness of streets, maintenance  of cemeteries, timely refuse

The provision of services remains the core mandate of this Municipality. Mr. Speaker, the scope of municipal services is extremely comprehensive, so please allow me to mention some of the following milestone that we have achieved since we were elected to office on the 03^rd of December 2021.

The following development projects were completed, amongst other:

EDUCATION AND YOUTH

We have paid registration fees for 77 young people through the Nthute Mayoral Tertiary Funding at different tertiary institutions such as Vaal University of Technology, Free State University, North West University, University of Johannesburg, Nelson Mandela University, Wits University, University of Cape Town, UNISA, Cape Peninsula University of Technology, Tshwane University of Technology, University of Pretoria, Tshwane TVET College and Central University of Technology. The budget for the registration fees was 500 thousand rand.

Recruitment and appointment of the Municipal Manager

Honourable Speaker, it has been sometime that our Municipality did not have an Accounting Officer. Amongst his/her roles is to provide guidance and advice on compliance with the Municipal Finance Management Act 56/2003, and all other pieces of legislation relevant to Local Government. We are proud that, Adv Mofokeng has been appointed and is assuming duties on the 01^st of June. Further, I am glad to report that, posts for Senior Managers in terms of section 56 of the Municipal Systems Act 32/2000, have been advertised and the Municipal Manager will oversee the whole process in terms of recruitment and duly report to this august house.

Public Private Partnership (PPP)

Honourable Speaker, we have been busy building relations with Private Sector. Purpose been that they assist the Municipality to deliver in its constitutional mandate (Section 152). We intend to increase efficiency, to bring about innovative technology which will add to the technological advancement of the institution. We have met with the following from the private sector; Sasol Firm,

Seriti Mine, Mission Point Mining, Naledi Light Industries Owner’s forum,

Standard Bank, Nedbank and Rand Water Foundation.

Sasol has committed and busy repairing all the high mast lights in Metsimaholo Local Municipality

Operation Patala

Operation patala has so far yielded positive results, the government institutions that owes the municipality have so far paid an amount of R26,4 million

Key priority projects

We have key priority projects that we will be rolling out for the 2022/2023 financial year which includes:

• Refengkgotso Sports Complex
• House electrification project in Themba Kubheka, Refengkgotso

BUDGET

Our Operating Revenue for the 2022/2023 financial year amounts to 1,830 billion rand and it increases over the medium term to 1, 916 billion rand in 2024/2025. The aforementioned figures, evidentely reflects that our Operating Revenue is increasing by 9.2 percent or 154 million rand for the 2022/2023 financial year compared to the 2021/2022 financial year, which is a call for concerned.

Electricity and water are the primary source of our income and it stands at an average of 25 percent for electricity and an average of 29 percent for water per year over the medium term.

We currently support indigent households with 6 kilolitres free water, 50 kilowatts electricity, sanitation and waste removal, as well as a 50 rand subsidy on property rates. We call on all our communities whose income is in the threshold of R5460 AND LESS, to take advantage by coming forward to apply for the said subsidies.

Property rates contribute an average of 11 percent to our income for the next three years.

ESKOM bulk tariffs have increased to 9.6 percent compared to last year’s 17 percent to municipalities with effect from the 1st of July 2022. We have submitted an application to NERSA regarding revised tariffs and awaiting approval. Based on the Eskom increases, our consumer tariff will increase by 7.47 percent to offset the additional bulk purchase cost starting from the 1st of July 2022. The electricity service reflects a deficit of 34 million rand, a decrease from R59MILLION, last financial year.

PROPOSED TARIFFS

• Businesses -waste removal: increase of 4.1% (across all municipal boundary) as of 1^st July 2022.
• Sanitation for households: increase of 1%.
• Sanitation for light industries and businesses: change to R8,29 and based on 75% of water The tariff of R8,29 remain unchanged.
• Our sanitation tariff for households increases with 1%
• Property Rates: an increase of 6% excluding industries, with effect from 01^st of July
• The rebate on properties increased by 15 thousand rand to 65 thousand

The cost of buying bulk water from Rand Water increases by 8.8 percent. Our water tariff will increase by 4 percent. Businesses, schools and industries will pay a flat tariff, increased by 4.1 percent.

An overall impact of the increases of tariffs on households’ bills have been kept to an average of 6 percent, pending on the use of water, electricity and new property valuation.

Our operating and capital grants amount to 410.2 million rand for the 2022/2023 financial year and will decrease to 394 million rand for the 2024/2025 financial year. All these grants represent an average of 21 percent of our total budgeted revenue over the next three years

OPERATING EXPENDITURE

• For the 2022/2023 financial year the operating expenditure appropriation is 6 billion rand and translates into a budgeted surplus of 182.8 million rand, taking into account capital grant revenue amounting to 156.2 million rand.
• Compared to the 2021/2022 Budget, operational expenditure has increased by 7 percent in the 2022/2023 budget and
• For the two outer years of the MTREF, operational expenditure has grown by 4.9 percent and 4.7 percent,
• The operating surplus for the two outer years is 103.1 million rand to 9 million rand.

Our budget allocation for employee cost for the 2022/2023 financial year amounts to 434.8 million rand. It is important to note that our employee cost equals 26.4 percent of the total operating expenditure as opposed to the average of 30 percent norm highlighted in the MFMA circular 71.

Bulk purchases of water and electricity remain the largest expenditure items on the budget. Purchases of water and electricity from Rand Water and Eskom respectively have been budgeted 602 million rand or 36.6 percent of the total operating expenditure in the 2022/2023 financial year and will increase in 2024/2025 financial year to 652.4 million rand or 36.1 percent. Honourable Speaker and members of the public, we are honouring our bulk service accounts payment and we are not owing Eskom and Rand Water.

Aligned to the priority given to preserving and maintaining the municipality’s asset base and current infrastructure, the 2022/2023 budget and MTREF provide a total expenditure of the next three years of 142.6 million rand, not taking into account our labour cost and capital renewal projects.

Capital budget, Basic infrastructural and social services have been prioritised in our budget.

Our total Capital Budget increases from 245.6 million rand in 2021/2022 financial year to 309.6 million rand in 2022/2023 financial year. For the 2023/2024 financial year our capital budget decreases to 199 million rand, and it increases to 211.7 million rand in 2024/2025 financial year.

Members of our community, our municipality will be receiving allocations of 331 million rand over the next three financial years from the national fiscus, in terms of the Division of Revenue Act (DORA) as our Municipal Infrastructure Grant (MIG), Regional Bulk Infrastructure(RBIG), Water service Infrastructure grant(WSIG) and Integrated National Electrification programme’s (INEP) conditional capital grants to speed up the rolling out of basic municipal infrastructure to households.

Our Municipal Infrastructure Grant over three financial years amounts to 151 million rand and will be spent on the following projects:

• We have budgeted an amount of 7 million rand in the 2022/2023 financial year and 2023/2024 financial year for the installation of water meters at 2 537 residential sites and 55 bulk water meters at Themba Kubeka in Refengkgotso.

• We have also budgeted 4 million rand in the 2022/2023 financial year, 5.3 million rand in 2023/2024 financial year and 8 million rand in the 2024/25 financial year for the replacement of old galvanized water pipes in Zamdela.
• Construction of roads: paving of roads as well construction of gravel roads, we have budgeted an amount of 5 million rand in the 2022/2023, 2023/2024 and 2024/2025 financial years.
• There will be an upgrading of Zamdela cemetery, and we have budgeted 2 million rand during the 2023/2024 financial year and 4 million rand in 2024/25 financial
• For the Sports Complex in Refengkgotso, we have budgeted an amount of 9 million rand for the 2022/2023 to 2023/2024 financial years, which will be financed by MIG.

For the upgrading of the water pump station, Sasolburg we have budgeted an amount of 21.1 million rand over the medium term.

For the rehabilitation of our wastewater treatment plant at Refengkgotso, the Regional Bulk Infrastructure (RBIG) has budgeted an amount of 50 million rand in 2022/2023 financial year and 5 million rand in the 2023/24 financial year.

The Water Service Infrastructure grant (WSIG) has also budgeted an amount of 42.3 million rand for wastewater treatment works at Oranjeville over the medium term.

The Water Service Infrastructure grant (WSIG) has also budgeted an amount of 7 million rand for water treatment works at Oranjeville for the 2022/23 financial year.

Furthermore, 6 million rand has been budgeted for over the medium term for installation of electricity in non-electrified areas.

• Our budget over the medium-term amounts to 78 million rand for the upgrading of roads and will be funded from borrowing as well as 47 million rand from own
• We will install services at the 122 un-serviced stands at Vaalpark at a cost of 61 million rand over the medium
• Provision has also been made for the upgradings over the medium

Social Services Directorate: we have made a total allocation of 57 million rand of the total capital budget over the next three financial years, mainly for the finalization of the sports complexes in Refengkgotso, Metsimaholo township, and Zamdela cemetery and vehicles and equipment for service delivery.

On average projects to be undertaken in both Technical Services and Social Services departments will make up approximately 97.9 percent of the total capital budget over the medium term.

Mr. Speaker, it is also important to emphasize that in the 2022/2023 financial year just over 50 percent of our capital budget will be financed through grants and decrease to 42.2 percent in 2024/5 financial year. This shows that unlike with the operating budget, we are over-reliant on external sources for the funding of our capital budget.

Capital projects financed from External borrowing increase from 18.1 percent in 2022/2023 to 24.1 percent in 2024/2025 financial year. External borrowing(loans) amounts to 151 million rand over the medium term.

Financial institutions finance vehicles mainly for service delivery amounts to

20.5 million in the 2022/23 financial year.

Mohlomphehi Motsamaisi wa Dipuisano ha ke ya qetellong ke rata ho lebisa diteboho tse menahaneng ho wena Motsamaisi wa Dipuisano, Makhanselara a Hlomphehileng, Rasephadi wa Masepala, Modulasetulo wa MPAC, Ditho tsa komiti ya Majoro, Ditho tsa Sehlopha sa Thusetso Masepaleng, Acting Municipal Manager, Management le Staff, Mafapha a fapaneng a mmuso ekasitana le bohle ba nang le seabo tshebetsong ya Masepala wa Metsimaholo.

Ke sa lebale ho lebisa diteboho ho Lelapa la ka, Setjhaba sohle sa Metsimaholo se kenyeleditseng ka hare, Baruti, Beng ba kgwebo, dikereke le di NGOs.

Ka hodima tsohle ke lebohe Ntate Modimo ka Paballo ya hae le mohau wa hae o ntekaneng.

Mr Speaker, the road ahead of us present enormous challenges as well as greater opportunity to change the lives of the marginalized and previously disadvantaged communities of Metsimaholo Municipality. As this is our opportunity to change the lives of our community for the better, we dare not fail in delivering to the expectations of our communities.

In conclusion, Honourable Speaker I would like to beseech this Council to approve and adopt this budget unanimously for financial year 2022/2023, and for the outer years 2023/2024, 2024/2025 and 2025/2026, as well as the related budget policies and the Integrated Development Plan.