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   Executive Mayor  

 




Contact Details:

 

Mrs. Carmen Ponte
PA to the Executive Mayor

Phone:
016-360-7418
Fax: 016-362-2794
E-mail: mayor@midvaal.gov.za



 

One of the youngest mayors in the country, Timothy Nast’s determination to implement good governance in Midvaal Municipality is bearing fruit.

Born in Johannesburg, Nast, 27, grew up in the picturesque village of Henley-on-Klip, where he cut his teeth in local government politics as a representative of the former Democratic Party which evolved into the Democratic Alliance.

 

Mayor’s vision for Midvaal

His vision for Midvaal, which has a population of more than 100 000, is “to keep it an area where people can live a good quality of life at an affordable rate”

Nast’s goal as executive mayor is to ensure that the municipal infrastructure is maintained and that Midvaal stays financially sound.

“The economic downturn forced the council in the beginning of 2009 to implement tough measures to protect its revenue stream.

“Daily, one hears of municipalities that are unable to meet their salary bills, because ratepayers are suffering financially in the recession. Businesses are being forced to lay off staff and to reduce working hours as the effects of the financial crisis hit home.

“Recently, the Minister of Finance announced that the national government’s revenue in the first quarter of this year fell short of its target by R15-billion. More and more of our ratepayers are finding it increasingly difficult to pay their rates and service bills.”

At the beginning of July, Nast called a meeting of the municipality’s 600 workers to explain the impact that the recession was having on the local authority, and how each one could implement savings in their respective departments by becoming cost-efficient.

“The process of debt-collecting is painful in these tough economic times, but the biggest mistake ratepayers can make is to ignore the outstanding amounts on their municipal accounts.

“We understand their situation, but those who are in financial difficulty are invited to make special arrangements with the municipality,” Nast said.

He pointed out that a municipality as small as Midvaal relies on income generated from the sale of water and electricity to large industries. “When these industries consume less, then we see a decline in our revenue which forces us to adjust our expenditure.

“Ordinary residents are also consuming less or, are simply unable to pay their municipal accounts, and this places even more strain on our resources.”

Fortunately, Midvaal’s administrative and political management foresaw this situation as far back as in January, when they were preparing the 2008/2009 revised budget, Nast said.

“Our response was to immediately freeze all vacant staff positions that were not required for essential service delivery. We also issued guidelines to all departments on how expenditure patterns would have to change in order to adjust to the declining income.”

The Municipal Manager, the Chief Financial Officer and Mayoral Committee Member for Support Services manage the day-to-day cash flow and inspect all requisitions thoroughly before they are approved. The mayor also receives almost daily reports on the municipality’s bank balance, as well as current and future commitments and he is often faced with making difficult political decisions.

“Financial, and specifically cash management in Midvaal is now our daily priority. We cannot allow a situation to unfold where we do not have enough cash in the bank to pay salaries and bulk purchases such as water and electricity.”

But Nast said that while the country’s economic outlook was bleak, there was much hope in Midvaal.

“By predicting this situation some months ago, we had the convictions to take tough decisions that would lessen the negative impact. Furthermore, the strict financial discipline and prudence practiced over the past eight years, also played a major role in assuring our soft landing in times when many municipalities are crashing,” Nast said.

He added that he was relieved when it finally became clear recently that Midvaal was “busy turning the situation around and that our outlook is indeed a positive one”.

The municipality recently experienced a payment rate of 109% and the overall payment rate for the year to-date is 92%.

“This is much higher than in other municipalities. Furthermore, our active cash-management strategy has ensured that we will not have to employ unnecessary delaying tactics in paying our suppliers and our biggest assets − our employees − will not have to worry about whether they will be paid at the end of the month.

“I have come to realise that our predictions had come true, that those organisations that have the determination and outright guts to tackle difficult decisions early on in this crisis, will also be the first to see a recovery.”

After completing his auditing articles, Nast is continuing with his studies in finance. Engaged to be married next year, he tries to balance his all-consuming job with regular exercise.

 
       


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