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Budget Speech as presented by the Honourable Executive Mayor, Clr. Koketso Calvin Seerane in the Mogale City Local Municipality's Council Chambers

31 May 2006


Madam Speaker: Councilor Noluthando Mangole

Chief Whip of Council: Councilor Boyce Maneli

Members of the Mayoral Committee

Leaders of political parties

Honourable Councilors of Mogale City

Municipal Manager, Directors and senior management of Mogale City Local Municipality

Members of the media

Good People of Mogale City:

INTRODUCTION
In Bloemfontein in December 1994, at the 49th and first National Conference of the ruling party after liberation, then National President of the Republic, Nelson Mandela said: "As has been pointed out here by many speakers, what is of immediate concern to us now are the forthcoming local government elections, which we must win at all costs. In many respects, these elections are far more important - far more crucial than the national elections on the 27th of April. It is in the level of local government that we come into physical contact with the problems of the people. It is at that level that delivery in terms of the RDP has to take place. We cannot be general in local government. We have to move from the elevated, from the general tone of our work, to specifics. At that level what the people want to hear is: how many jobs are we going to create within the next 12 months? How many houses are you going to build? How many clinics? How many schools? How many boreholes are you going to make? You have to know the conditions in that particular area very thoroughly to make an impact on people at that level!"

Since then, our country has had three local government elections. These three local government elections have a number of common features, including: an inimitable meeting of the minds between the electorate and the African National Congress. The confidence that the people of South Africa, and of Mogale City in particular put in the African National Congress is no mistake. It is because as Nelson Mandela said, we understand that this sphere of government is about moving from the general to the specifics. It is because we know, having come from such communities, that people need jobs, houses, clinics, schools, roads and basic water and sanitation. And we know this because we understand the conditions in these specific areas thoroughly to make an impact on people at that level. We know this because we identify with the realities of ordinary people who are our most important partner.

Madam Speaker, what Nelson Mandela spoke about in 1994 still characterizes our government's programme, attitude and vision. When President Thabo Mbeki wrote about the principal Order of the Day of our movement and government being "Let the work begin!", he had Mandela's words in mind, just 8 months after our victory in our country's historic first democratic elections of 1994.

And so I want to first and foremost thank the people of Mogale City for continuing to give real meaning to our hard-fought democracy. They deserve the credit because in all the three local government elections we have had, as well as in three national elections we have had, we in this city enjoyed peaceful, free and fair elections where the people expressed their choice. They have to know that by so doing, they have repeatedly provided an example for the rest in our continent and the entire world, that it is possible. It has become expected in the entire continent of Africa today that regular elections must happen, and they must happen without bloodshed and rigging. Our people have played a role in establishing such practices and they must be saluted for that.

NATIONAL AND INTERNATIONAL ANNIVERARIES
Madam Speaker, this year presents us with the opportunity to celebrate and commemorate a number of significant events in the history of our country and our continent. In a message to all patriots and struggling masses of our motherland after the June 1976 uprising, political prisoners on Robben Island wrote: "The evils, the cruelty and the inhumanity of apartheid have been there from its inception. And we have opposed it all along the line. What is now unmistakable, what the current wave of unrest has sharply highlighted, is this: that despite all the window-dressing and smooth talk, apartheid has become intolerable. This awareness reaches over and beyond the particulars of our enslavement. The measure of this truth is the recognition by our people that under apartheid our lives, individually and collectively, count for nothing....... The world is on our side. At all levels of our struggle, within and outside the country, much has been achieved and remains to be done. But victory is certain!"

In exactly 16 days, the world will join us in commemorating June 16, 1976. That same day will mark the 30th anniversary of the uprising. Indeed, our country has come a long way. Those that sacrificed their lives live on as martyrs of our noble struggle. We will forever honour them. We will forever remember them.

Madam Speaker, 10 years after the June 16 1976 uprising, South Africa was yet again ground for another blow to the struggle of the oppressed people of the world, of Africa and more specifically of the people of Mozambique. A plane heading towards Mozambique, one of the passengers being inspirational and revolutionary leader Samora Machel, went down. I remember that day clearly. The weather changed unexpectedly, it became very cloudy. Samora Machel was no more. In October 1986, just days before Comrade Samora's funeral, in a message on Maputo Radio Broadcast to the Mozambican people, the Machel family, Frelimo, and the Mozambican government. Nelson and Winnie Mandela issued the following joint statement: "Our grief for the loss of Comrade Samora is so deep that it breaks our hearts. Throughout the night we shall join you in the vigil. Throughout the day we shall cry with you for the loss of that powerful soldier, courageous son and noble statesman. We must believe that his death will give new strength to your and our determination to someday be free. For you it will be through victory over the immoral and lackey bandits. For us it will be victory over oppression. Our struggle has always been linked and together we shall emerge victorious."

This year marks the 20th anniversary of the death of Samora Machel on South African grounds. The details of why his plane went down are still not clear enough. Hell is awaiting those responsible. The spirit of Comrade Samora Machel still lives on.

CITY-WIDE TOUR
Madam Speaker, it has happened in many countries that a liberation movement comes into power and freedom fighters of yesterday become members of the government. Sometimes without any idea of mischief, they forget about the people who put them in power, and become a class, a separate entity unto themselves, who are not accountable to the people. Nelson Mandela says that one of the ways of preventing that temptation is for members of government to go regularly to their areas, talk to the people. Go to the squatter camps, enter the rooms and see how they live, talk to them also to explain to them, as feedback, what their government is doing to improve their lives.

In Mogale City, we believe in this. So much so that the very first thing we did when we took office was to embark on a city-wide tour to identify specific areas that can be dealt with immediately, to see for ourselves where and how people live, and to provide this much-needed feedback so that people understand that we exist because their lives must be better.

IDP AND BUDGET PROCESS
Madam Speaker, the Integrated Development Plan of Mogale City remains key in guiding the council with regard to Strategic Priority Areas. Since the election of the new Council, besides the City Wide Tour, we also held a Strategic Planning Session as part of the process of councilors and senior managers reassessing and confirming the IDP and budget, as presented to Council in March 2006.

Assisted by our district municipality as well as a number of provincial departments, including the department of housing, the new leadership sought to firstly:

  • Undertake a review of the municipality's vision, mission and strategic focus; developmental and institutional challenges; and service delivery and institutional achievements over the previous five years.

  • And secondly to:
  • Map out a Strategic Focus, Implementation and Resource Mobilisation Framework and Plan that will guide the municipality's service delivery over the next five years, starting with a 100 Day Service Delivery Plan which ends on 30 June 2006, the 2006/07 Budget aligned to the Integrated Development Plan as well as a Five Year Strategic Framework and Implementation Plan.
  • The analysis undertaken included:
  • Articulating hard service delivery choices based on the intimate understanding of the needs of the people of Mogale City

  • Developing a framework that optimizes the strengthening of the backbone of service delivery through
    • infrastructure maintenance to ensure that the contributory value of existing infrastructure is enhanced,
    • refurbishment and upgrading of existing infrastructure to extend the useful life of our assets and
    • the development of new infrastructure, specifically focusing on areas which have not had the benefit of basic services in previous eras;

  • Increasing our understanding of the critical success factors that will increase service delivery successes. This includes optimizing the investment in people; ensuring continued strong financial management with the focus on a prudent, viable financial regime; streamlining our processes and systems; and ensuring that outstanding legal matters are resolved urgently;



  • 100 DAY SERVICE DELIVERY PLAN
    Madam Speaker, since taking office, we also developed a 100 Day Plan that was based on the pre-election interface with the people of Mogale City, the city-wide tour as well as the Integrated Development Planning Priorities.

    Our delivery in the future is based on realities on the ground including that of the the 78 year old lady at Tholame Street who, while being a pensioner and supporting two children and three grandchildren, has still not registered as an indigent, the 20 year old young man who does not know what to do with his life in Sinqobile, and the 3 month old baby girl whose mother has to borrow money for taxi fares in order to take her to the nearest clinic for baby shots.

    This 100 day plan identified urgent needs and quick wins with specific focus on, amongst other:
    • The provision of water and temporary sanitation in rural areas;
    • The distribution of title deeds;
    • The registration of indigents;
    • The filling of potholes;
    • Dealing appropriately and decisively with illegal dumping; and
    • Land acquisition.

    The 100 day plan as well as the IDP and Budget for the 2006/7 financial year was presented to communities through roadshows. These roadshows were well attended, and in general, communities were pleased with the areas prioritized within the plan for implementation.

    FIVE YEAR PLAN - HIGHLIGHTS
    In the same breath, our IDP focuses on programmes, projects and specific actions which are planned for the next five years. We are working on the basis of confirmed funding which will ensure the successful roll-out of the projects over the 2006/7 financial year. Additional focus is required in forecasting for the anticipated funding sources and partnerships that would enable Mogale City to increase Capital allocations and spending in years two and three of the Medium Term Revenue and Expenditure Plan.

    While it will be subjected to rigorous review annually, the 5 year plan has the following as its strategic focus areas:
  • Accelerated Service Delivery with specific focus on the provision of housing, water and sanitation, roads, electricity and refuse removal. The provision of houses, security of tenure and free basic services will remain a key focus area for our municipality for years to come. Here we specifically give attention to those areas that restore the dignity of our people. We cannot continue to have a situation where there are people for who water and electricity are rare scarce luxuries. These are basic necessities, and the provision thereof gives real meaning to the spirit and specifics of our constitution as the most progressive in the world. Our country can only prosper is all of us enjoy the fruits of our freedom. We will explore every possible means, we will use every available resource to ensure that this becomes a reality.
  • Infrastructure Development/Maintenance & Repairs -strengthening of the backbone of service delivery with specific attention to electricity, roads, water and sanitation. Focus will be on repairs and maintenance to ensure that the contributory value of existing infrastructure is enhanced; selective upgrading to ensure that the life of existing infrastructure is prolonged; as well as the creation of new infrastructure to ensure that new technologies of meeting the needs of the people of Mogale City are taken advantage of. This also includes improved management and maintenance of the Council's fleet and all other movable assets.
  • Rural Development - the issue of rampant illegal evictions is being dealt with, and we will continue to ensure that our people are treated with the dignity and respect they deserve. One of the ways through which we can arrest poverty and curb lack of tenure is through the establishment of economically viable and sustainable settlements for dispossessed and landless people. Our rural areas require our urgent and immediate attention and intervention. People live in squalor and sub-human conditions. There has not been much achievement here because we are dealing mostly with people that live in privately owned land, which is a problem in itself. The problem here arises because some of the private land owners who have people living on their land just refuse to work with the municipality to allow us to deal with these sub-human conditions. Don't get me wrong, there are many of the private land-owners that have expressed their willingness to work with us so that we give real meaning to the claim that ours is a society based on unconditional regard for another. This is an area that has to be addressed. Our commitment remains unshakable.
  • Local Economic Development - we pledge to accelerate the pace at which we pursue the general local economic development of the city, with initiatives like the Munsieville CBD, Leratong Intersection, Muldersdrift, CBD and Magaliesburg Precinct Plans, an Incentives Programme for CBD Renewal, Hekpoort Fresh Produce Market, the Ithembalethu and Rietfontein rural settlements and the Coronation Park/Bob van Reenen initiatives.

  • Madam Speaker, allow me to isolate the Bob van Reenen stadium initiative because out of all the things we do at council, this issue has generated the most interest not only in Mogale City, but in the province in general. Our city is fortunate to have been chosen as the most appropriate city to be home for the country's most followed soccer club. An amount of R800 million will be invested in the city over the next three years. This is an investment that is going to change the face of the city for forever. I want urge all residents of the city, Madam Speaker, to put their support behind this initiative.
    I call on all the people of our city to go out and sell this initiative, so we all take ownership of our city's development.
  • Economic Growth and Skills Development with specific focus on job creation with the municipality playing the role of enabler, encouraging an entrepreneurship spirit among the people of the city by providing adequate support for SMMEs, particularly among women and youth, and ultimately attracting investment into the City in line with our mission of being the most desirable place to invest.
  • Social Security and Development with focus on skills development and social well-being. Youth development is another key area that is going to receive increased attention in this term. A 23 year old freedom fighter who was hanged by the murderous apartheid system in 1979 had these last words: "My blood will nourish the tree that will bear the fruits of freedom. Tell my people that I love them. They must continue the fight." His name was Solomon Mahlangu. Young people in our city owe a great deal to him and many others. And so to accelerate and make it possible for young people in our city to pay the respect and dignity deserving of the likes of Solomon Mahlangu, we will be setting up a youth unit complete with the support staff which will be operating from the Office of the Executive Mayor. We do so because we believe that young people have a critical role to play in our city, and also because we agree that they are our future.

  • Madam Speaker, the issue of HIV/AIDS remains one of the core focus areas for our municipality. We agree, in line with national and provincial government policy, that our approach must be comprehensive and holistic, and not just single out one form of intervention and present that as the answer. We must challenge ourselves around the question of prevention as much as we deal with the question of treatment. Our approach to treatment too, must be comprehensive, holistic and realistic given the material conditions on the ground. This is too big a problem for simplistic and narrow-minded solutions. A lot has been debated around this issue. Ours is a comprehensive, holistic and realistic approach. Over and the above the programmes that are in existence here in Mogale City, programmes of home-based care, programmes of food parcels to HIV/AIDS orphans, programmes of providing support for those infected by the desease, we are of the view that we are all affected by HIV/AIDS, and so we will strengthen our efforts to ensure that as a city and as a country, we deal a serious and permanent blow to HIV/AIDS.
  • Democracy and Good Governance is a key component in the implementation of our plan with specific focus being given to Community and Stakeholder Participation and Capacity Building. The internal processes of the municipality must ensure that the gains of the liberation struggle do in fact translate into real change for our people. In everything we do both as politicians and administrators, we must conduct ourselves in a manner that is responsible, accountable and rooted in the communities we serve.

  • Public Participation - we are extending the notion of democratic participation through the election of ward committees, which is currently underway with the assistance of the Independent Electoral Commission. We are strengthening that with community policing forums and youth forums as a means of getting closer to our communities so that we can understand their needs better.

  • Creative ways of increasing community participation include the new Executive Mayor's monthly column with two of Mogale City's most consistent local publications, namely Mogale Sun and Krugersdorp News. Here we strive to encourage the readers to engage us, raise their issues and have direct responses from the Executive Mayor.

    These are not only initiatives we will be rolling out. The issue must not be that of minimal compliance with the law, but it must about carrying out our task guided by the spirit of that law. So over and above the ward committee system, we are going to be working closely with different sectors of our population to extend a warm hand of co-operation. Residents of this city cannot be curious by-standers while the politicians and officials run their city. Over the next couple of months we will set up various platforms so that the council can interact with various groupings, including business, labour, civil society, the church and others. Over and above informing the community on municipal activities, we want to start engaging different groupings to seek advice and counsel on other areas where we do not possess the necessary expertise. We know that we cannot go it alone. These platforms must also include an element that makes it possible and attractive for ordinary residents to engage us as and when they find it necessary. There is a wealth of expertise and a body of knowledge out there, and it is important for us to tap into it.
  • Inter-Governmental Relations - no municipality can successfully better people's lives if it does not forge healthy and co-operative relations with other spheres of government, particularly provincial departments. We have taken a conscious decision to strengthen these relations because we know that we share the same desire with these provincial departments, and that is to accelerate the pace at which we deliver the long-held freedom cry of a better life for all.


  • We will work also with our sister municipalities in the West Rand as well as our District Municipality to contribute to a realization of the drive to establish and sustain the Gauteng Province as a competitive City-Region. To this end, we will work towards changing apartheid's spacial planning and development, and thereby integrate our communities and our towns.

    2006/07 CAPITAL AND OPERATING BUDGET
    Madam Speaker, I now turn to the 2006/07 budget.

    CAPITAL BUDGET
    The Capital Budget proposed for the 2006/7 financial year amounts to R82 million.
    • Infrastructure is to receive 37% or R31 million
    • Water and Sanitation 35% or R28 million
    • Housing receives 10% or R8.7 million
    • Integrated Environmental Management 7% or R5,5 million
    • Community Services 6% or R4,6 million
    • Other Directorates 5% or R3,7 million

    Key Infrastructure projects include:
    • Enhancement and upgrade of Low Voltage Infrastructure
    • Development and upgrade of the Muldersdrift electricity supply
    • Upgrade of the Chamdoor and Factoria supply
    • Upgrade and replacement of outdated traffic lights
    • Refurbishment of old Sub-stations
    • Roads and Stormwater in Muldersdrift, Magaliesburg, Hekpoort, Tarlton as well as in Kagiso and Lusaka

    Key Water and Sanitation projects include:
    • Refurbishment of Percy Stewart Water Care Works
    • Lusaka Pump Station development
    • Rural Water and Sanitation
    • Water Demand Management
    • Prepaid Water Meters
    • Muldersdrift reservoir and outfall sewer

    Housing projects planned for 2006/07
    are included in the book of Mogale City are:

    Madam Speaker let us acknowledge that these housing projects are jointly funded with the Gauteng Housing Department. We will deliver 520 houses through PHP in Kagiso Ext. 12 and Rietvallei Proper and Ext. 1, and 300 houses through an independent contractor. Working with the Gauteng Department of Housing we intend to build an additional 400 houses in Sinqobile, 335 houses in Rietvallei 3A, and we will service 469 in the rural areas of Muldersdrift and Rietfontein. At the same time we are working to complete the planning activities regarding housing development in the Tarlton, Nooitgedacht, Hekpoort, and Magaliesburg areas.

    We will complete the servicing of 930 stands in Rietvallei Ext. 5 and construct the required pump station and rising main in partnership with the Gauteng Department of Housing.

    We will be completing the township establishment process of Sinqobile Ext. 1 which will link with the planning activities in preparation of the conversion of the Kagiso hostel. Another major focus will be the renewal of the Munsieville areas through an assortment of interventions including:
    • Improvements to the living conditions in the Horse Shoe area
    • Eradicating the informal settlement of Pango
    • Converting the Munsieville hostel
    • Developing the Commando land into a Social Housing initiative which will provide good quality affordable rental housing and integrate our communities.

    We will be hard at work in partnership with the financial service institutions such as ABSA bank and the Gauteng Department of Housing in identifying opportunities that will enable the development of integrated and sustainable human settlements such as that of the Kagiso-Azaadville Node.

    Integrated Environmental Management's major project is the continued development and upgrade of the Luipaardsvlei Landfill Site to meet legislative requirements and to provide services to the West Rand region. Verbal agreement for funding of the Hekpoort cemetery has been received from the West Rand District Municipality.


    Community Services projects mainly include completion of the following sports complexes:
    • Kagiso Ext 13
    • Rietvallei 2 & 3
    • Johanna Botha
    • Azaadville
    Additional MIG funding is sought in the 2006/7 financial year to fast-track the Hekpoort and Munsieville Sports Complex projects.

    Other Capital Projects include but are not limited to:
    • Development of Prescinct Plans
    • Leratong Township Establishment
    • Enhancing Information Technology, Information Management and electronic communication
    • Revenue Enhancement Project

    Funding of Capital Projects is derived from the following sources:
    • National government grants including MIG: 52%;
    • Council funds, most of which is from the proceeds of the sale of land: 33%;
    • Grants from provincial government, most of which is for Housing Projects: 13%; and
    • Public contributions: 3%.

    OPERATING BUDGET

    The total operating budget proposed for Mogale City Local Municipality for 2006/07 is R690 million including a R7 million contribution to Capital Replacement Reserve. The budget is R50 million or 7.7% above the 2005/06 Adjustments Budget approved by Council on April 26, 2006. Of the Operating Budget, Infrastructure receives R252 million or 36% and Water and Sanitation receives R159 million or 23%. These two areas make up 59% of the City's total budget.


    Other core departments include Integrated Environmental Management with R74 million (11%), Community Services with R52 million (8%), Public Safety with R38 million (6%), Finance with R25 million (4%) and Housing with R17 million (2%), Rural Development, Tourism and LED with R24 million (3%) and Municipal Manager, Human Resources and Corporate Services with R15 million (2%).

    Revenue
    The main sources of revenue to fund operating expenditure as well as to fund a component of the Capital Budget (contribution to Capital Replacement Reserve) are:
    • Assessment Rates: 17% or R119 million
    • Tariffs levied for services:
      • Electricity: 31% or R216 million
      • Water and Sanitation: 26% or R170 million
      • Refuse Removal: 6% or R42 million
      • Other Service Charges: 4% or R29 million
    • Government Grant and Subsidies: 11% or R76 million
    • Other income: 5% or R37 million
    The rates, tariffs and charges to be implemented from 1 July 2006 are as follows:
    • Property rates: 6%
    • Electricity tariffs: -17.38% to 16.79% (in line with the National restructuring guidelines for electricity tariffs. Approval for implementation of tariffs is still awaited from the NER)
    • Water tariffs: 6%
    • Sanitation tariffs: 6% from 1 October 2006
    • Refuse collection tariffs: 6%
    • Other user charges: 3% to 20% (based on cost recovery and alignment to charges in other regions).


    CHALLENGES WITH REGARD TO SPENDING THE BUDGET
    The timeous implementation of the budget aligned to available cash flow remains a problem. Strong focus over the past two years in controlling spending in line with available resources has led to certain projects being rolled out slower than one would have hope. However, in order for Mogale City to grow from strength to strength this was required. Where funding sources were readily available, Mogale City has shown its ability to deliver with speed. This is especially true with MIG funded projects as well as Community Services projects.

    In order to fast-track the remaining internally funded areas of our operating and capital project, the Councillors, administration and the communities need to lock arms and forge on together to ensure:
    • Increased payment levels from all communities within Mogale City which will allow speedy delivery of high level services. A major drive has been embarked on to register and confirm indigents within our boundaries. For those who are not approved as indigents, strong credit control action will be taken.
    • Illegal connections will be dealt with strictly and legal action taken against the thieves of our electricity and water supply
    • Vandalism and theft of electrical cables also needs Council and communities, along side the law, to unite in the fight against such evil acts which are extremely costly to Council as well as to the communities of Mogale City.


    New methods of monitoring budget implementation are being developed in order to involve Portfolios and Ward Committees more in this critical process and to ensure speedy delivery of projects. An enhancement to be introduced in the next budget cycle will include a Budget Tips Campaign where good ideas for the budget can be forwarded to the Executive Mayor and the MMC for Finance for assessment and inclusion where possible in the future roll-out of he budget.

    CONCLUSION
    Madam Speaker, in his call - the Order of the Day: let the work begin!, upon the election and appointment of Executive Mayor's and councilors after March 1, 2006, President Thabo Mbeki recalled Nelson Mandela's words when he said: "We can proudly say to the founders, the country is in the hands of the people: the tree of liberty is firmly rooted in the soil of the motherland!" The President urged all of us as representatives of the people, to remember that we have arrived at the moment when the motherland, in all its institutions and programmes, will and must, at last, and after many centuries, respond to the genuine interests of all our people, in conditions of liberty for all. He declared that nothing whatsoever should and will divert us, the genuine cadres and servants of the people from the loyal, disciplined and principled defence and pursuit of this perspective, focused on the radical and continuous improvement of the quality of life of all our people and the restoration of the dignity of all these masses. Whether we remain a people's government or not will be defined by what we do in this regard, and nothing else.

    And so in conclusion Madam Speaker, at our last council meeting of the year 2005, former Executive Mayor, Adv. Lentswe Mokgatle said: "Armed with the Freedom Charter, against the backdrop of the first decade of our Freedom, embracing our second decade of Freedom, with vigor, passion and dedication, we will come back chanting freedom songs. With Oliver Tambo, Nelson Mandela and Thabo Mbeki, we will, in a few months time, return to these Chambers to inaugurate our second five years of developmental local government. Whoever will be the Executive Mayor then, we will return to continue bettering people's lives with a re-newed mandate".

    We have returned. We have returned as servants of the people of Mogale City to strengthen the drive to deliver an improvement in people's lives. In explaining the challenges facing Tanzania, Mwalimu Julius Nyerere once said "while they are trying to reach the moon, we are still trying to reach the next village". Such is our challenge. We have people living in sub-human conditions just a stone throw away from council offices. We cannot accept such things to prevail in our city. We would have failed if we do not ensure that come 2011, the people of this city at least enjoy all the basic services that are due to them, irrespective of their social and economic standing. This is something we have to achieve. This is what humanity dictates.

    I would like to thank all councillors, employees, residents and our businessmen and women for their support and counsel. Lets join together in declaring and pledging that ALL OUR BLOOD, ALL OUR SWEAT FOR THE QUEST FOR TRUE HUMANITY!

    I thank you and God bless you all.



    Mayor Calvin Koketso Seerane
    Mayor Calvin Koketso Seerane


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