9 July 2004

By Dante Mashile

Mogale City mayor Lentswe Mokgatle presented his 2004/2005 budget in June, focusing on the municipality's goal of improving people's lives.

"This is our goal and drive. We are committed to move our city decisively towards the eradication of poverty and underdevelopment," Mokgatle said.

This is the first time the City has presented its Medium-Term Income and Expenditure Framework (MTIEF), a three-year budgeting framework covering all aspects of income and expenditure.

For the next three years Mogale City's Integrated Development Plan and the MTIEF will be geared to building a financially strong municipality that is able to foster economic growth and development, and facilitate job creation and poverty alleviation.

One of the municipality's priorities in the next three years is the fight against HIV/Aids, the mayor said.

Fighting crime and facilitating the empowerment of vulnerable groups are also on the agenda. "We plan to support various programmes ranging from food security, education to supporting home-based care centres."

Criminals and fraudsters will be dealt a severe blow through joint efforts with the South African Police Service, public safety departments of neighbouring municipalities, the business sector and communities.

A municipal police programme will be implemented, increasing crime and traffic law enforcement initiatives, while also putting into place programmes that will empower and enable communities to play a greater role in combating crime, Mokgatle said.

Making Mogale a Human Rights City is also a priority, he added. The Human Rights City initiative will be rolled out through programmes that will consolidate governance structures.

"Achieving our mandate of being a developmental, participative and accountable municipality is what we have worked for over the past few years. In the next three years, we plan to consolidate these achievements by focusing on promoting and ensuring the protection of the human rights of our residents, visitors and investors."

The 32 ward offices and ward committees will be fully functional. Community and stakeholder participation and reporting will also be strengthened.

The IDP and MTIEF are underpinned by aligning programmes and financial allocations to local and national priorities, financial sustainability and viability of the municipality and compliance to new and existing legislation and national treasury guidelines.

Mogale City's budget for the financial year 2004/2005:

• Capital Budget R216 738 245
• Operational Budget R577 815 359
• Envisaged Income R579 210 434

"We shall be gearing ourselves in the new financial year to improve the municipality's financial viability by increasing the collection of debt, employing revenue enhancement mechanisms and reducing costs," Mokgatle said.

The Capital Budget will go towards various infrastructure services projects, social economic development within Mogale City, shared services, strategic services, and the offices of the mayor and speaker.

The primary goals are financial sustainability, revenue enhancement, cost reduction and greater public participation.

The Capital Budget allocations are:
Envisaged Infrastructure Services Projects for 2004/2005

• Housing R141 177 041
• Electricity, Roads and Storm Water R32 913 000
• Water and Sanitation R27 696 481
• Integrated Environmental Management R15 554 925

Social Economic Development Programme

• Community Services R15 612 200
• Rural Development R9 617 159
• Local Economic Development R100 000

Shared Services

• Financial Services R6 800 000
• Corporate Services R3 138 000
• HR Services R100 000

Strategic Services

• Marketing and Communication R860 000
• Internal Audit R60 000
• Strategic Services R550 000
• Public Safety R5 260 014

Political Office

• Mayor's and Speaker's offices R463 000

The primary effect of the infrastructure services budget will be a reduction in the housing backlog, greater access to free basic services, and job creation.

Priority housing projects are under way in Kagiso Ext 12 and Rietvallei Proper, Sinqobile, Munsieville Ext 4 and Rietvallei Ext 1, totalling about 6 900 housing units. These projects should be completed by the end of November.

The municipality will take care of poor households first when rolling out the free basic services programme.

It was also very important to improve billing and revenue collection efforts, Mokgatle added.

The Muldersdrift area will receive attention with respect to building a reservoir, constructing bulk sewer network and bulk water pipe link, which will be completed by June next year.

Among other things, the primary concerns to be addressed by the social economic programme will include economic development, security of tenure and support for people infected and affected by HIV/Aids.

The city plans to convert overhead wires to cable meters and install pre-paid meters in Munsieville. Noordheuwel, Factoria, Kenmare and Silverfields will have distribution lines and electricity supply capacity strengthened from 6,6kV to 11lkV.

A new substation, transmission lines as well as the distribution lines are planned to service the Pinehaven corridor and Muldersdrift. This will be completed by the end of June next year. The private sector will be brought in as a strategic partner in planning, financing, implementing and managing the project.

The Luipaardsvlei Landfill Site will be maintained by a cooperative. "In both the current and new financial year about 17 small businesses will benefit from the landfill site. Furthermore, more than 50 temporary jobs will be created," Mokgatle said.

Mogale City's operating budget's key items are:

Total expenditure R577 815 539
• Total Income R579 201 052
• Total Surplus R1 386 074

New Rates

Mogale City also announced new rates for the upcoming year.

"These tariffs are presented to promote social and economic development and at the same time provide services to communities in an efficient and sustainable manner," said Mogale City mayor Lentswe Mokgatle.

• The assessment rates tariffs increase by seven percent.
• The electricity tariff is in line with Year Three of the proposed restructuring plan approved by National Electricity Regulator. The proposed increase will be from seven to eight percent. "This will be levied as from 1 September, as per regulator approval," Mokgatle said.
• The water tariff will increase by 10 percent.
• Waste services will go up by 10 percent.
• The general tariff for Integrated Environmental Management will increase by 10 percent across-the-board with effect from 9 July.
• The general tariff for Local Economic Development will also be increased by 20 percent across-the-board, with effect from 9July.

Source: Dikgang Tsa Mogale