Thabazimbi Chair Person’s Forum’s letter to the municipal manager

THABAZIMBI – In a letter to the municipal manager, adv Ntsoane, dated 13 May 2013 regarding Thabazimbi Local Municipality’s Draft interim budget for the period 2013/14, the Chair Person’s forum wrote the following:

“The Thabazimbi Chair Person’s Forum hereby wishes to inform the municipality its concern for the increase in revenue budgeted. The increase reflected, is not entertained by the Forum as it does not recognise the economic constraints faced by the residents.

“Table 2 Summary of revenue classified by revenue source” reflects a increase in revenue of 13,6%, which is significantly different as provided for in MFMA Circular 67 by the National Treasury, which should be in the order of 5,5% as it is per this circular. This is more than double as indicated by National Treasury, all cost for the account of residents and paid by residents.

From the same table, as indicated above property tax is increased by 35%, indicated to be as a result of increased revenue from mining operations. The increase, in fact is not the case, but mainly due to the increase in the valuation roll to be implemented on 1 July 2013. Ignored is the fact that the valuation roll is increased in the excess of 70%, having a direct impact on property tax payable by all tax payers. The similar principle applies with respect to water and electric services, been increased by 12%. The fact that Magalies Water increased it’s cost by 10%, does not permit the municipality to increase the cost to 12% for this service. The same applies to the ESKOM increase of 8% for power supply, been increased to 12%. This increase is also not aligned to the recommended increase to be provided for by NERSA.

The forum is not insensitive to the need for improved office accommodation. With respect to the procurement of the Kransberg Hotel to satisfy this need, is rejected in total. The cost of alterations to convert this building to office space in addition is not reflected.

The Forum has no option to register it’s concern with the Council, ignoring all the basic requirements of legislation with respect to the municipal budgeting process, to ensure transparency and good governance. This a grave concern which has escalated out of control and seemingly not of importance to Councillors. The following is some of the legislative requirements not satisfied to date by the municipality with respect to the budget under review: not submitting a single financial control document to the National Treasury as called for by section 71 of the Municipal Finance Management Act; the interim adjustment budget for the period ending December 2012 has not been made available to the public for consideration; the Municipal Rates Policy for 2013/14 has not been made available for input to the public as prescribed by Act 6 of 2004. This document forms an integral part of the total budgeting process; the Draft Interim Budget for 2013/14 has not been made available to the public as prescribed by legislation. After various complaints, this requirement was satisfied on 1 May 2013 having the document placed on the municipalities web site; the public has not been invited for input on the budget by means of an advertisement in the local news papers, which is a legislative requirement. Due to the absence of this advertisement, the closure date for the submission of comments are unknown; the draft document indicating in detail the increase in tariffs for services provided by the municipality is not available for public input. In the budget document published on the municipal web site, this document is referred to be annexure 2., but not available.

This budget does not demonstrate the desperate economic welfare of the community. The economic activity of Thabazimbi is to a significant extend driven by the mining sector. The platinum mines are facing record low prices on its commodity and already announced major reduction in employment levels which directly impacts Thabazimbi. Similarly is Kumba Mining employees not secure of employment as a result of the possible closure of this operation. These two factors will not only impact the commercial sector, but also employees which are all residents of Thabazimbi and the ability to pay the drastic increase in property tax been reflected in this budget.

The forum hereby request that the concerns of it’s members are addressed to the satisfaction of It’s members. Members wish to extend the opportunity to the municipality to be engaged in a meeting to reflect and explain the concerns with the budget. To be noted that a meeting with the Manager Technical Services, Mr C Booysen already took place to address some of the matters directly under his jurisdiction. A meeting scheduled with the mayor has been deferred due to other commitments of herself.

To be noted is that this letter is submitted without prejudice of taking further action if the reflected concerns are not satisfactorily addressed.”