Thulamela to implement new property rates

Date: 13 June 2014 By: Phathutshedzo Luvhengo

The Thulamela Municipality approved a record budget of R883,6 million two weeks ago, but the extra money to pay for the expenses will have to come from the taxpayers as well as the selling of assets, such as land.

Thulamela Mayor Grace Mahosi presented the budget to members of the public, the executive committee, senior traditional leaders, ward councillors, and other relevant stakeholders on 30 May at the municipal council chamber.

A large amount of the additional income meant to finance Council's expenses will come from the implementation of the new property valuation roll. "The assessment rates for the 2014/15 financial year is R103,8 million, while in the previous financial year it was R35 million," she said. Whether Council will be able to collect the money is debatable. In her address, Cllr Mahosi referred to the problems of collecting debt. "Our financial firm ground lies in our will and strategies which can remove us from our stagnant revenue collection," she said.

In the past year, the municipality managed to collect about 40% of their outstanding debt, but the mayor believes this can improve dramatically. Council budgeted for a 50% collection rate in the new year.

Another source of revenue that Council is about to explore, is the issuing of fines. Traffic offenders will seemingly have to be extremely careful, as the Thulamela Municipality plans on writing three times as many tickets as in the previous year. The budgeted income from traffic fines is R3 million, compared to the R1 million the previous year.

Land owners who  use their property illegally have to be extremely worried, as Council has budgeted for R6,2 million income via these type of fines. In the previous year, Council did not budget for any income from this source.

By far the biggest additional revenue earner is the selling of sites. Council hopes to earn R92 million through the selling of such land. "We have more than 187 hectares (available) for business development in Malamulele, Thohoyandou J and K area and other residential sites in various areas," Cllr Mahosi said.

As far as tariff increases are concerned, these will seemingly be very moderate and based on the inflation rate. "The tariff increment has been provided for as per guideline received on the predicted trends in the inflation forecast (CPIX)," she said.

In her budget speech, Mayor Mahosi mentioned the successes of the past year. These include the electrification of several areas, the job creation projects and the various housing projects. The municipality, through its Environment and Waste Management Plan, managed to create in excess of 500 job opportunities. "We successfully commissioned a youth job in a Waste EPWP Programme worth R6 million with grant funding from the Department of Environmental Affairs," she said.

As far as expenses are concerned, the municipality expects the salary bill to rise by R16,8 million, totalling R227 million. A further R45 million is budgeted for electricity projects, but this expense will be funded by a long-term loan. Council also plans on spending R8,5 million in the new financial year on the re-gravelling of streets.

As far as capital projects are concerned, a total of R333 million was set aside for new projects. The bulk of the money, R248 million, will go towards building roads and storm-water drainage networks. The Building Department was also allocated a budget of R37 million, compared to the R15 million received last year.

Cllr Mahosi emphasized that the municipality will support small enterprises, cooperatives, the informal sector and rural small farmers. “We will establish community and village markets by non-financial means, as a way of ensuring food security while improving household and community income,” she added.

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Phathutshedzo Luvhengo

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