2020/2021 BUDGET SPEECH - RNM MAYOR, CLLR NCP MQWEBU - Ray Nkonyeni Municipality
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EMBARGOED UNTIL DELIVERED 05/27/2020
2020/2021 BUDGET SPEECH
RNM MAYOR, CLLR NCP MQWEBU
27 MAY 2020, ON AIR PRESENTATION
Mr Speaker,
AmaKhosi Ahloniphekileyo,
Deputy Mayor,
Executive Committee Councillors
Hounarable Councillors,
Municipal Manager,
Heads of Departments and all other officials,
Abasakazi be Ugu Youth Radio ne Gagasi FM nabalaleli
isikakhulukazi abangaphansi kuka Masipala wase Ray Nkonyeni
Ngibingelele nakulabo abasibukele bukhoma ku Facebook Page
yase Ray Nkonyeni Municipality
Good Evening to everyone,
Today, I present the Ray Nkonyeni Municipality 2020/2021 Budget in a
unique way as we are faced by an extra ordinary situation not only as
South Africa but the world as a whole. The outbreak of COVID-19
pandemic has forced us to do things in different and unfamiliar ways as
we ensure compliance with measures that are meant to prevent the
spread of the pandemic. Whilst we comply with these measures we have
to also ensure that we balance that with legislated directives when
conducting our business, and I will dwell more on this later on.
I would be failing on my responsibilities as the Mayor, if I don’t commend
the majority of citizens of Ray Nkonyeni Municipality who continue to
abide by different directives from our national government, as our country
is still under the National State of Disaster as was declared by the
President, His Excellency Mr Cyril Ramaphosa. It is the wish of the
leadership of the municipality for the rest of the citizens, young and old
and of all races, to understand that these directives are meant to protect
2020/2021 Budget Speech- May 27, 2020 1EMBARGOED UNTIL DELIVERED 05/27/2020
each one of us from the virus. Abiding by these directives and practicing
the preventative measures will be more critical at this time, as we are
about to move to Alert Level 3 as from 01 June 2020, as pronounced by
the President, but also considering that we now entering into the cold
season. Research has shown that CORONAVIRUS favours cold
temperatures, and therefore we should expect the most severe outbreaks
of the virus during winter. We can all contribute towards minimizing the
spread of the virus by adhering to the Five Basic Preventative Measures
and thereby protecting ourselves from being infected and also from
spreading the virus, those Basic Preventative Measures are:
1. Wash your hands regularly with water and soap or use an alcohol-
based sanitizer;
Geza izandla zakho njalo-njalo, usebenzise amanzi nensipho
okanye i sanitizer ene alcohol;
2. Cover the mouth with the tissue when coughing or sneezing and
immediately dispose it properly or use your elbow;
Vala umlomo nge tissue uma ukhohlela noma uthimula bese
uyilahla ngokushesha endaweni efanele okanye uzivale
ngendololwane;
3. Avoid touching eyes, nose and mouth with our hands;
Sigweme ukuzithinta amehlo, ikhala nomlomo ngezandla;
4. Use a cloth mask or a homemade mask covering your mouth and
nose whenever you leave home or in a public place;
Sisebenzise i-cloth mask noma isikhafu sizivale umlomo
namakhala uma uphuma ekhaya noma uma nje sisezindaweni
zomphakathi;
2020/2021 Budget Speech- May 27, 2020 2EMBARGOED UNTIL DELIVERED 05/27/2020
5. Keep a social or physical distance of 1.5m to 2m between yourself
and the next person whenever you are not at home;
Gcina ibanga elingangegxathu nohafu ukuya kumagxathu amabili
phakathi kwakho nomunye umuntu uma nje ungekho ekhaya;
Most importantly, stay at home if there’s nothing important for you to be
outside; Okubaluleke kakhulu, ukuhlala ekhaya uma kungekho lutho
olubalulekile olukwenza uphume ekhaya.
As I proceed to the actual business of the day, earlier on I indicated that
whilst we have to comply with the directives by our National Government
which are in line with the National State of Disaster, we are also expected
to comply with legislated directives in conducting our business. We are
towards the end of our financial year, and in terms of the Municipal
Finance Management Act (MFMA), Act No. 56 of 2003, Chapter 4
Subsection 16(1) requires that the budget of the municipality be approved
before the start of the financial year, which starts on 01 July. The legislated
process towards this approval, requires municipalities to consider the
Draft Budget at least 90 days before the beginning of the financial year
and then approve the final budget at least 30 days before the beginning
of the year. Indeed, and as an institution that complies with legislation, on
26 March 2020 we met at Uvongo Civic Centre to consider the Draft
Budget which was later made public. Consultations, as required by
Subsection 23 of the MFMA and also by Chapter 4 of the Municipal
Systems Act, were done.
Ake ngithi ukwenaba ngisho ukuthi lokhu kwenzeke kanjani njengoba sazi
ukuthi besekuqala i Lockdown…
It is worth mentioning, that immediately after the consideration of the Draft
Budget on 26 March 2020, on the midnight of the same day, our country
2020/2021 Budget Speech- May 27, 2020 3EMBARGOED UNTIL DELIVERED 05/27/2020
started with the Nationwide Lockdown aimed at flattening the curve of the
spread of the CORONAVIRUS. In order to comply with both the
Nationwide Lockdown Regulations and also with the legislation in terms
of consultation on the considered draft budget, we opted for alternative
ways of consulting our communities. These alternative ways were
advertised on all local newspapers, on local community radio and also on
our Facebook Page. In the main and instead of contact roadshows or
Izimbizo, we had 5 radio slots, which were 04 on Ugu Youth Radio and 01
on Gagasi FM. During these slots, which were on the 14th, 21st, 23rd and
30th of April 2020 in Ugu Youth Radio, and the 28th of April in Gagasi FM,
I, as the Mayor, together with the Municipal Manager and our Senior
Manager: Mayoralty and Communications were live on air, where in I
firstly tabled the summary of the draft budget and later on engaged with
our communities. On these days, we also responded to questions that
came through our Ray Nkonyeni Municipality Facebook Page. Whilst we
had also created an e-mail address specifically for comments on the Draft
Budget, our management also engaged with the KZN South Coast
Residents and Ratepayers Association of which the last engagement was
held on 07 May 2020. With these engagements, we are confident that
whilst we were under immense pressure to comply with the lockdown
regulations but we also complied with the legislation meant to ensure
public consultation in the process of approving 2020/2021 budget.
As I stated during the March Draft Budget, when developing the budget,
municipalities are guided by legislation and various circulars from both our
National and Provincial Treasury. Most of these circulars highlighted the
difficulties faced by our country, and cautioned that these economic
challenges will make it impossible for National and Provincial Government
to allocate adequate resources to municipalities in general.
2020/2021 Budget Speech- May 27, 2020 4EMBARGOED UNTIL DELIVERED 05/27/2020
Furthermore, these challenges exert pressure on revenue generation and
collection levels, hence we were advised to adopt a conservative
approach when doing revenue projections but also to be prudent in
projecting expenditure.
It’s a known and undisputed fact that the current outbreak of
CORONAVIRUS, worsened the very same volatile economic
environment. The National State of Disaster which was justifiably declared
by the President, led to a cessation of most of the economic activities and
this resulted to more economic distress. All that I have highlighted,
including inputs and comments during the consultation process meant that
there would be some notable changes in the budget I am presenting today
to the one I presented on 26 March 2020. One substantial example is that
of Capital Projects which were meant to be completed by 30 June 2020,
which will not be completed as work had to be suspended as a result of
Nationwide Lockdown. As a result, such projects had to appear in the
2020/2021 Budget hence they are now forming part of the budget I am
presenting today.
As I proceed to the actual budget for 2020/2021, allow me to start by
dealing with the issue of increase or adjustment on our rates, tariffs of
charges and electricity charges for 2020/2021. Ngizoqala ngikhulume
ngokunyuswa kwama rates, imali ekhokhelwa izinsiza ezinikezelwa u
Masipala kanye nokukhokhelwa kukagesi.
It would be remembered that in our March Draft Budget, we had proposed
the increase of 6% on rates and tariff of charges for services and 13% for
electricity within our area of distribution. After thorough consideration of
the current economic decline, the negative effects that are as a of COVID-
19 outbreak, and also considering National Treasury Circular Number 99,
2020/2021 Budget Speech- May 27, 2020 5EMBARGOED UNTIL DELIVERED 05/27/2020
we, as a caring government that is in touch with its citizens, then decided
to reduce the increases for rates, tariffs of charges and electricity. This
therefore means in the budget I am presenting today for 2020/2021 we
decided to cap the increase in line with the projected Consumer Price
Index (CPI) Inflation for 2020/2021, which is 4, 5%. Ngamanye amazwi,
njengohulumeni onakekelayo, sithe asingayinyusi imali yamarates kanye
nokukhokhelwa kwezinsiza ibe ngaphezulu kwesivuthelo noma amandla
emali. Ingakho sithe sizokunyusa ngo 4, 5%.
Coming to electricity tariffs, and let me also clarify that this refers to areas
where electricity is supplied by Ray Nkonyeni Municipality, and those
areas are Port Shepstone CBD, Albersville and Oslo Beach; we are
proposing the increase of 8, 1% instead of the initial 13%, and this 8, 1%
is subject to NERSA approval. Yize ukuphila nokusebenza kuka Masipala
wethu kuncike kakhulu emalini esizingenisela yona (own revenue
streams) nokungaphezu kuka 70%, kodwa sibone kufanele ukuthi
njengoba isimo somnotho singamile kahle, sibe nesabelo zimali
esingabeki umthwalo omkhulu kubahlali isikakhulukazi abakhokhi bama-
rates.
Lesi sabelo zimali engisethulayo sizama ngayo yonke indlela ukuthi
sibhekelele izimo zokungalingani kwemiphakathi ekhona ngaphansi kuka
Masipala wethu, siphinde futhi sizame ukuthi sihambisane nosomqulu
wakuzwelonke, i National Development Plan, owesiFundazwe sethu sa
KwaZulu-Natal, i Provincial Growth and Development Strategy kanye ne
Ugu District Development and Growth Strategy, kodwa isikakhulukazi
sihambisana nosomqulu wethu wentuthuko edidiyelwe, phecelezi,
Integrated Development Plan (IDP).
2020/2021 Budget Speech- May 27, 2020 6EMBARGOED UNTIL DELIVERED 05/27/2020
Ngaphezulu kwalokho, ngonyaka odlule ngenyanga ka November
sahambela kuwo wonke ama Cluster kumasipala wethu, nalapho
imiphakathi yafaka khona izicelo. Siphinde futhi sabheka imibiko
yemihlangano yemiphakathi yezigceme, kanye neyemihlangano eyaziwa
ngama Cluster Meetings. Yonke lemibiko iye yasinika umhlahla-ndlela
wokuthi okuphi okufanele sikubeke phambili uma sihlela noma uma
sesenza lesi sabelo zimali.
Kubalulekile ukuthi sikuqonde ukuthi asikwazi ukwenza konke ngesikhathi
esisodwa, noma ngonyaka zimali owodwa ngenxa yokuthi imali ekhona
ayilingani nezidingo zemiphakathi yethu. Uma kuwukuthi
esizokumemezela namuhla akukufakile lokho enicabanga ukuthi
kubaluleke kakhulu, sicela nisibekezelele, isimo sezomnotho asisihle
neze hhayi e Ningizimu Afrika kuphela kodwa cishe emhlabeni wonke,
ngakho ke ningasingasoli singaboli benu.
Okunye emangikusho ukuthi kunokuthize ebesijwayele ukuthi sikwabele
imali esingakufakanga kulesi sabelo-zimali ngenxa yokuthi okunye
kwakho akuhambisani nesimo esisengaphansi kwaso esimayelana
nokugwema ukusabalala kwe COVID-19. Sinenkolelo yokuthi
kusazothatha isikhathi ukuba isimo sibuyele kwesijwayelekile,
njengokuthi kusazothatha isikhathi eside ukuthi kuvumeleke ukuhlangana
kwabantu abaningi ezindaweni zemiphakathi, ngalesosizathu, lokho
okuhlanganisa abantu abaningi ndawonye asikufakile kulesi sabelo
zimali.
When going straight to numbers, let me start with the Projected
Operating Income for 2020/2021 which is, One billion Eighty million, Six
hundred and Seventy thousand rand (R1 080 670 000. 00). This projected
operating income is from the following two sources:
2020/2021 Budget Speech- May 27, 2020 7EMBARGOED UNTIL DELIVERED 05/27/2020
Grant Revenue – Three hundred and Thirty Six million Eight hundred
thousand rand (R336,8 million) (Mangisho ukuthi lemali ingaphansi
kwaleyo ebesiyithole kulonyaka zimali esikuwo nophela zingu 30
June 2020)
Total Own Revenue (okungama Rates nama Service Charges) –
Seven hundred and Thirteen million Nine hundred thousand (R713,9
million) and our own revenue is made up of the following:
Property rates – R457,9 million
Service charges – R210,7 million
Investment revenue – R2,5 million
Other revenue – R72,8 million
Uma sengiza ekuyihlukaniseni indlela ezosebenza ngayo lokho esikubiza
nge Operating Expenditure; it comprised of:
Total Department budget (imali iminyango eyahlukene
yakaMasipala ehlukaniselene ngayo yona ingu) – Five hundred
million Two hundred and Sixty One thousand Nine hundred and Twenty
Nine rand (R500, 261, 929. 00)
Remuneration for both Officials and Councillors (imihlomulo
noma amaholo abasebenzi kanye nama Councillors) – Four
hundred and Fifty Nine million Six hundred and Fifty Nine thousand
Five hundred and Forty Seven rand (R459, 659, 547. 00)
Fleet Budget (okuyimali ebhelele izimoto zomkhandlu) – Fifty Four
million Four hundred and Forty Seven thousand Eight hundred and
Three rand (R54, 447, 803. 00)
Repairs and Maintenance (imali yokulungisa nokunakekela) – Fifty
Two million Five hundred thousand (R52,500, 000. 00 million)
Isiyonke lemali engenhla okuyi Operating Expenditure ingu One billion
Sixty Three million Eight hundred and Sixty Nine thousand Two hundred
and Seventy Nine rand (R1, 063, 869, 279. 00).
2020/2021 Budget Speech- May 27, 2020 8EMBARGOED UNTIL DELIVERED 05/27/2020
Ake ngibalule izinto ezimbalwa kulezo eziyingxenye ye Operating
Expenditure yethu isikakhulukazi lapha kwi Department Allocation:
Potholes – Twenty Two million Eight hundred and Sixty Two, Two
hundred and Sixty Eight rand (R22, 862, 268.00)
Plant hire – Seven million Five hundred and Forty Six thousand Two
hundred and Five rand (R7,546,205.00)
SMME Development – One million Seven hundred and Fifty
thousand rand (R1, 750, 000. 00)
Support to Co-operatives – One million Five hundred thousand rand
(R1, 500, 000. 00)
Youth Empowerment – One million One hundred and Seventy
Seven thousand rand (R1, 177, 000. 00)
Informal Traders Development – One million rand (R1, 000, 000.
00)
Poverty Alleviation Programmes Five hundred thousand (R500,
000. 00)
Investment Promotions – Four hundred thousand (R400, 000. 00)
NPOs & NGOs Grants – Four hundred thousand (R400, 000. 00)
The above are just few of the projects under Operating Expenditure and
in the Departmental Allocation.
Moving on to our Capital Budget which seeks to deliver on Infrastructural
needs for our people, whilst mindful of our resolve to remain financially
prudent.
Ngezizathu engike ngazibalula ngasekuqaleni isabelo sethu esibhekene
nokwakhiwa kwengqalasizinda kuye kwafuneka siyehlise uma
uqhathanisa naleyo ebesinayo kwisabelo-zimali zonyaka ka 2019/2020.
Okunye okufanele sikuqaphele ngayo lemali ukuthi ayisayifaki imali
eqondene nokwakhiwa kwezindlu ngenxa yokuthi uMnyango
weZokuhlaliswa KwaBantu eSifundazweni usuyazenzela okuningi manje.
2020/2021 Budget Speech- May 27, 2020 9EMBARGOED UNTIL DELIVERED 05/27/2020
Our Capital Budget for 2020/2021 is Ninety Eight million Six hundred and
Thirty thousand and Thirty Seven rand (R98, 630, 037. 00) excluding VAT.
Sources of Income for our Capital Budget are as follows:
Grant Funding – Eighty million Eleven thousand Nine hundred and
Fifteen rand (R80, 011, 915. 00)
Internally Funded – Fifteen million One hundred and Eighteen
thousand One hundred Twenty Two (R15, 118, 122. 00)
DBSA Loan – Three million Five hundred thousand (R3, 500, 000. 00)
Our Capital Expenditure is divided into Cluster Capital Projects,
Municipal Wide Projects and Departmental Capital Projects.
Mangisho ukuthi amanye alama projects engizowabala aqale ukwenziwa
kulonyaka zimali kodwa ke ngenxa yesizathu engisibalulile ngasekuqaleni
(ekuwukumiswa komsebenzi ngenxa yemibandela ye Lockdown),
kuyacaca ukuthi angeke aphele ungakashayi umhla zingu 30 June 2020,
ngakho ke kuye kwafuneka ukuthi siwabekele imali, futhi iningi laleyo mali
izoqhamuka emalini yangaphakathi, internal funds: (Reference to the
Attachment)
Clusters are allocated funds as follows:
Cluster 1 (Wards 30 to 36) – Sixteen million Six hundred thousand
rand (R16, 600, 000. 00
Cluster 2 (Wards 07, 08, 09 and 29) – Eight million Two hundred
thousand rand (R8, 200, 000. 00)
Cluster 3 (Wards 01, 02, 06, 10, 11 and 19) – Four million Eight
hundred thousand rand (R4, 800, 000. 00)
Cluster 4 (Wards 03, 05, 25, 26, 27 and 28) – Nineteen million Eight
hundred thousand rand (R19, 800, 000. 00)
Cluster 5 (Wards 21 to 24) – Six million Nine hundred thousand rand
(R6 900 000. 00)
2020/2021 Budget Speech- May 27, 2020 10EMBARGOED UNTIL DELIVERED 05/27/2020
Cluster 6 (Wards 04, 17, 18 and 20) – Fourteen million Four hundred
thousand rand R14, 400, 000. 00)
Cluster 7 (Wards 12, 13, 14, 15 and 16) – Seven million Eight hundred
thousand rand (R7, 800, 000. 00)
Then the Municipal Wide Projects of which all Clusters will also be
benefitting, there is Thirty Two million Seven hundred and Thirty One
thousand Six hundred and Forty rand (R32, 731, 640. 00)
Lastly under the Capital Expenditure we have Departmental Capital
which is allocated One million Two hundred and Seventy Forty thousand
Two Hundred and forty Two rand (R1, 274, 242. 00)
The Total Capital Expenditure Budget inclusive of VAT is One
hundred and Fifteen million Five hundred and Five thousand Eight
hundred and Eighty Two rand (R115, 505, 882. 00).
In summary, the 2020/2021 Final Budget I am presenting today is as
follows:
TOTAL REVENUE – One billion One hundred and Eighty One million
Nine hundred and One thousand Six hundred and Forty rand (R1, 181,
901, 640. 00)
TOTAL EXPENDITURE including capital – One billion One hundred and
Sixty Two million Four hundred and Ninety Nine thousand Three hundred
and Sixteen rand (R1, 162, 499, 316. 00)
I am glad Mr Speaker to say our Budget for 2020/2021 has a surplus of
R116,9 million in our income statement prior to considering capital
expenditure and net Reserves of Nineteen million Four hundred and Two
thousand Three hundred and Twenty Four rand (R19, 402, 324.00) after
accounting for capital expenditure.
As I conclude, let me announce that on Friday 29 May 2020 starting at
09h00 we will be having a virtual Council meeting to debate for purposes
of approving the budget that I have just presented. I invite interested
citizens who would like to follow the proceedings to tune in on Ugu Youth
Radio at 93. 4 fm or alternatively they can send their e-mail addresses to
2020/2021 Budget Speech- May 27, 2020 11EMBARGOED UNTIL DELIVERED 05/27/2020
Simon.April@rnm.gov.za so that they can receive a link that will enable
them to observe the said meeting.
Bonke abafisa ukulalela umhlangano oyobe wenziwa
ngokobuchwepheshe njengoba singakwazi ukuhlangana ndawonye
ngenxa yemibandela yokugwema ukuthelelelana nge COVID-19,
bangalalela umsakazo Ugu Youth Radio ku 93.4 fm ukusukela ngo 09h00,
okanye bathumele ama e-mails ku Simon.April@rnm.gov.za ukuze
bathole i-link abayokwazi ukuthi bathamele kuyo lomhlangano
esizowubamba sibe sizindaweni ezahlukene.
In conclusion, I would like to thank our management as a whole for
ensuring that we fulfil our obligation to present this budget to our
communities on time, a big thanks to the Municipal Manager Mr Max Mbili,
with his team and more importantly the Treasury team under the
stewardship of the Acting CFO, Mr Nkazimulo Mavundla and the
Manager: Budgeting and Reporting, Ms Snikiwe Qwabe (CA) SA.
I thank you,
CLLR NCP MQWEBU
HER WORSHIP THE MAYOR
RAY NKONYENI MUNICIPALITY
2020/2021 Budget Speech- May 27, 2020 12You can also read
