7 June 2007

By George Matlala

MORE money is being poured into new infrastructure in the mayor's 2007-08 budget,
with the City wanting to create an environment conducive to attracting investment.

Unveiling his R817-million budget, Mogale City Executive Mayor Koketso Calvin Seerane said it was a solid commitment to ensure service delivery. Capital expenditure was set at R90-million while the operational budget was set at R727-million.

Seerane delivered his budget at a special council meeting at Main Hall in Krugersdorp in May. Among those present were Dan Mashitisho, the municipal manager; Boyce Maneli, the chief whip of council; members of the mayoral committee; leaders of political parties and Mogale City residents.

"You touch people's lives through the decisions that you take on how to spend the budgets you pass from time to time," he said, quoting Finance Minister Trevor Manuel. The national minister was speaking at the South African Local Government Association conference in April.

Seerane emphasised that the budget and the Integrated Development Plan (IDP) were some of the tools the City would use to respond to its people's needs.

Though there was still room for improvement, Seerane noted that people were consulted during the preparation of the budget and IDP.

Those who participated included youth, business and religious groups and other community structures. According to the mayor, the budget was a true reflection of the people's aspirations and desires.

In an effort to determine their needs, the City had also undertaken on road shows in all wards, a step Seerane said would keep it on its toes. "You give real meaning to the long-held freedom cry that, ‘The people shall govern.'"

Capital budget
Seerane said the City's capital budget represented an unwavering commitment to ensuring service delivery. This year's capital budget was set at R90-million, R8-million more than last year's budget and R12-million more than the 2006-07 adjustment budget.

The focus would be on selective upgrading of existing infrastructure, with some R31-million set aside for the creation of new infrastructure. Another issue at the top of the agenda was water and sanitation, with R31 million spent on upgrading and installing water and sanitation infrastructure.

However, Seerane noted that the capital budget was not final, as more money was expected through funds and grants during the year. Funding would come from various sources, including the Department of Water Affairs and the Gauteng department of sports, recreation, arts and culture.

An additional capital grant of R11-million may also be available from other sources, including the Department of Housing and the West Rand District. "These grants will be used to fund specific capital projects agreed by the grant-donor organisations and will be added to the capital budget once the funds are secured through an adjustment budget process."

The City was also looking at raising R81-million through land sales, which would be added to the capital budget. "We are also looking at restructuring the existing loans from the Development Bank of Southern Africa, with the amount of R16-million, which may assist in securing more funding."

Investment projects in Mogale were also supported, and they may be totally funded by other government or private sectors. These projects were termed "out-of-books" since their funding did not flow through the City's bank account. These included the national housing development projects funded by the Gauteng department of housing.

Operational budget

The major portion – 56 percent – of the operational budget would be spent on infrastructure management, the mayor said. Some R407-million, which is R37-million more that last year’s budget, was set aside for the maintenance of and improvement to roads, electricity, water and sanitation, and repairs.

Another major focus was environmental management, with R92-million set aside to boost the City’s efforts to create a healthy environment, conducive to attracting investment.

"I wish to state that this budget speech represents the executive summary of our City's 2007-08 to 2009-10 financial years budgets and captures only the key factors. Details are presented with the budget report," Seerane concluded.

The budget

The tariffs

New budget to expand Mogale's mission and vision