Thabazimbi Municipality 2013/14 Municipal budget

By Jan Viljoen

THABAZIMBI – The Thabazimbi Local Municipality’s 2013/14 budget was approved on 31 May 2013 by the councillors. The consequences of the approval of this budget have a direct influence on every inhabitant of Thabazimbi and the area falling within the jurisdiction of this municipality. Much has been written the past two weeks about the budget which has been approved, to be implemented on 1 July 2013. It was clearly stated that the approval of this budget indicates either the lack of commitment or it could be as a result of incompetence of councillors. The increase of residential property rates by 19% and more, the 100% plus increase in electricity supply to business and commercial users are only part of the problem. If we have to analyse the budget in depth, the mentioned items are the pinnacle of the iceberg.

To be remembered, all councillors are remunerated for the work being done. It is only then fair that ratepayers get then a reasonable return on the tax they are paying for the service to be provided on there behalf by councillors. Unfortunately it is not the case. The 2013/14 approved municipal budget proof that this expectation is a fallacy.

The purpose of the council meeting of 31 May 2013 was to approve the 2013/14 municipal budget. This budget reflects all income and expenditure planned for the coming financial year. On the revenue side it includes the income derived from property tax, power supply, sanitation, refuse removal and water services. In the ideal world it is expected that each councillor comes prepared to the council meeting. It is also expected that they have applied there mind to the content and scrutinized the information to make an informed decision. In making the decision it is needed to consider the sustainability of the budget with respect to the affordability to tax payers and that of the municipality to provide services. The only evidence demonstrated to this effect was when councillors agreed not to purchase Kransberg hotel and to remove this item in total from the budget. Unfortunately this only came about as a result of pressure applied by opposition party councillors.

The total lack of commitment of some councillors is demonstrated by the fact that on arrival at the council meeting, the budget document was still sealed in the envelope it was delivered. At the commencement of the meeting the document was removed and looked at, the first time. The same councillors then without exception voted for approval of the budget. The question then begged to be asked, how did they apply there mind to the content. Similarly we need to concern our self for those councillors not even taking the time to attend this meeting, this to be the most important meeting of the year.

In essence, the budget can only be approved once all evidence in the budget has been analysed and found correct and sustainable once implemented. All evidence available indicate that the above mentioned is too much of an effort and of no consequence to the councillors. The following are some of the problems demonstrating this: the property tax payable was approved without the rates been reflected in the budget. How is it then possible to calculate the impact of property tax on rate payers not having this information available The dear consequence of this action is that property tax increases by 19% for residential property having its market valuation been increased by 60%. During the same meeting rate payers is assured that the increase is limited to 5,6% by the mayor. What has now been approved? The cost of electricity supply to commercial and businesses increases by more than 100%. The budget reflects that the increase on sanitation services increases by 12%, 10% or 5.6%. The question then is what figure was approved by councillors?

It is time that residents start to ask for explanations. It is also time that residents pool there resources to oppose incompetent decisions being made on their behalf. The worst part of these decisions is that they are compelled to pay for it from hard earned earnings. For this, sufficient vehicles are in place to address this issue by joining eitherthe Thabazimbi Tax Payers Association, the Thabazimbi Chamber of Commerce or AFRI Forum or any of the other representative organizations which are in place.

– On behalf of the Thabazimbi Chairpersons Forum: Jan Viljoen