28 February 2018
Mogale City adjustment budget steers municipality to full recovery
Mogale City Local Municipality held a special council meeting yesterday where the Executive Mayor Patrick Lipudi tabled the adjustment budget for the 2017/2018 financial year which was subsequently approved.
The municipality has managed to produce a solid budget after reprioritisation of expenditure by following stringent cost-containment measures. The leadership of the municipality took full cognisance of the fact that Mogale City is in no way immune to harsh economic realities associated with the ongoing economic crisis in the country. Among the impacts are the serious cash flow challenges due to increase in the debt book, water losses, ageing infrastructure requiring upgrade to accommodate rapid development of the city.
The proposed operating revenue budget has been adjusted by R126 million from R2,6 billion to R2,7 billion based on the actual cash collected for the first half of the financial year. This income excludes capital transfers. It should be noted that the budget is now informed by cash collected and not anticipated collection as well as well as short-term debt or overdraft of R50 million to be repaid on 30 June 2018.
Total operating expenditure including non-cash items was adjusted by R176 million from R2,5 billion to R2,67 billion which translates into an operating surplus of R279 million which includes funds for capital transfers from national and provincial treasury (out of this surplus R229 million is grant funding for capital budget projects).
Whilst expenditure will increase from R2,5 billion to R2,6 billion, there will be R7,8 million decrease in employee expenses and R2,3 million in special projects.
There will also be a savings of R8 million in bulk purchases identified in water purchases.
The capital budget increased by R71 million (24%) to R365 million when compared to the original budget of R293 million.
The total consolidated adjustment budget for 2017/2018 moves Mogale City into the R3 billion mark reflecting growth of the city and prudence within as well as viability of the institution.
“We have maintained a steady hand over the finances of the municipality in order to stabilise the institution post a disastrous 2016/2017 financial year and we are pleased that the results are now beginning to show,” said the executive mayor Patrick Lipudi after the meeting. “We are confident that the people of Mogale City will now see accelerated provision of services from now onwards.”
Council also approved the Spatial Planning and Land Use Management (SPLUMA) By-Law as per the promulgated SPLUMA Act of 2013. The By-Law was circulated internally for comment and Public Consultations were done in 2016, with further consultations done in the year 2017. The By-Law will be promulgated so that the municipality will be able to consolidate processes and procedures, to facilitate and make arrangements for the implementation of land development and land development applications, spatial planning and a land use scheme within the Mogale City jurisdiction.
Council approved a list of municipal-owned land parcels to be sold to the public for residential and church purposes. The land acquisition and disposal policy by which the sale of municipal stands will be done, will also be considered in a special meeting of council to sit in the beginning of March. The full list and date of disposal will be published to the public.
Issued by:
Mogale City Local Municipality
Enquiries to be directed to:
Spokesperson: Nkosana Zali
Cell: 0834332908
Tel: (011) 668 0500/0513
Email: nkosana.zali@mogalecity.gov.za