The Honourable Speaker, Councillor Morakane Mosupyoe
Chief Whip of Council, Councillor Jabu Mabona
Members of the mayoral committee
Leader of executive business
Chairpersons of section 79 Committees
Leader of the opposition
Leaders of all political parties
Honourable councillors and traditional leaders
The city manager
Deputy city managers and officials
Distinguished guests
Members of the media
Citizens of Tshwane
Ladies and gentlemen.
The German philosopher, Karl Marx, aptly cautioned in his eleventh thesis on Ludwig Feuerbach that ‘philosophers have only interpreted the world in various ways; the point is to change it'! In other words, we would have done our people a great disservice and dismally failed our Constitution if we only end after reflecting on the state of our society and the challenges it confronts. That will only constitute half of the responsibility we are charged with. The other half is to put in place a set of interventions to change whatever needs to; in order to move closer to
our goals.
After all, what Karl Marx was dissenting from was not the act of reflection or contemplation, but that such an exercise should not become an end in itself, without resulting in any meaningful impact in the way society is configured. The budget represents one of the most potent instruments in the repertoire of tools at our disposal that has a great potential of realising the council of that prestigious luminary Karl Marx.
Madam Speaker, during the State of City Address, the City of Tshwane launched a new logo with a pay-off line "Igniting Excellence". We take pleasure in presenting a budget speech and the Medium-Term Revenue and Expenditure Framework (MTREF) for the 2012/13, 2013/14 and 2014/15 financial years a tool to ignite excellence. This budget, Madam Speaker is an arsenal against the triple challenges of poverty, unemployment and inequality.
The National Treasury Budget Review 2012 notes that the South African economy has demonstrated resilience despite unsettled international economic conditions. The domestic outlook remains positive over the medium term, meaning that it is time again to invest in our city.
On 12 December 2011, the Global Credit Rating Agency announced a good credit rating for the CoT, as a result of prudent management and stable cash liquidity on the short term. The rating agency has confirmed the City stable outlook which was previously deemed as negative by Moody’s credit rating. This places the City in a competitive advantage as it will be in position to fund infrastructure capital investment projects at a competitive rate.
Madam speaker as indicated before the city intends to raise R10 billion in the debt capital market in the current Political term of office. In this regard it is my pleasure to announce that before the end of the 2011/12 Financial Year, the City will issue its inaugural municipal bond, "The Tshwane Bond". This will be made of R1.5 billion for the current financial year and the Domestic Medium Term Note will be to the value of R4.5 billion over the MTREF.
In the state of the city address we highlighted the need to promote sound and good governance, to illustrate such for the second year in succession the city has achieved an unqualified audit opinion from the Auditor General. In our pursuit for a clean audit opinion, the city has institutionalised the concept of Operation Clean Audit (OPCA) to an extent of appointing 28 OPCA Officers from all departments and regional offices within the city.
The roles and responsibilities of OPCA Officers is only to focus on achieving clean audit and address all the issues raised by Auditor General in the management letter. This institutional arrangement is over and above the OPCA Committee chaired by the Executive Mayor.
In the State of City Address we highlighted the fact that accurate billing of services is a critical aspect of sound and good governance aimed at ensuring sustainable use of City’s resources. The Security of Revenue Project which entails full roll out of prepaid electricity meters throughout Tshwane is now a reality.
On the 1 July 2012 in line with the revised Credit Control and Debt Collection Policy which is now back from public participation process, the city will promulgate a by-law that will state that rendering of Electricity in Tshwane will only be done on pre-paid electricity platform for all the users.
The cost of the security of revenue project is projected to be over R5 billion and the City have appointed a financial advisor to advise on the off balance sheet funding model for the project.
With the implementation of the macro structure that was approved by Council, regions will now play an active part in service delivery. For the first time in the history of Tshwane the operational budget has been regionalised and this will ensure that service delivery is brought close to respective communities.
With the configuration of SAP ERP Financial system during the adjustment budget more functions of the operational budget will be devolved to the regions. The core department will be responsible for formulation of polices and implementing of the capital programs on behalf of the regions. This madam speaker represents a significant shift in the delivery of services.
The Medium-term Revenue and Expenditure Framework
The 2012/13 MTREF has been compiled in accordance with the new approved macro organisational structure. The total revenue budget over the medium term is R74,2 billion, constituted by R22,3 billion for 2012/12, R24,5 billion for 2013/14 and R27,4 billion for 2014/15. Total revenue increased by 15,5% against the 2011/12 adjustment budget and by 17,0% against the 2011/12 approved budget.
The expenditure budget for the medium term equates to R67,2 billion, constituted by R20,6 billion for 2012/13, R22,3 billion for 2013/14 and R24,2 billion for 2014/15. Total operating expenditure has increased by 14,7% against the 2011/12 Adjustments Budget and by 15,8% against the 2011/12 approved budget.
For the 2012/13 budget has been allocated per department in the following manner:
Department Budget 2012/13
- Service Infrastructure Department: R10 805 054 000
- Environmental Management: R1 577 784 000
- Financial Service: R1 483 800 000
- Transport and Roads: R1 468 182 000
- Metro Police Services: R1 158 730 000
- Regional Service Delivery: R840 478 000
- Corporate and Shared Services: R839 874 000
- Housing and Human Settlement: R455 309 000
- Emergency Services: R402 126 000
- City Planning and Development: R214 905 000
- Information & Communication Management: R317 292 000
- Economic Development: R160 136 000
Other departments
- Office of the City Manager: R 244 324 000
- Office of the Speaker: R185 349 000
- Other Votes (Department): R 545 893 000
Totl expenditure budget: R20 699 236 000
Let me emphasise that one of the key budget principle is to increase the percentage share of the maintenance budget. This is done to keep the integrity of our assets, especially in the more affluent areas. This saves us from expensive future replacements costs and improves public confidence in the leadership of the municipality. It is important that we incentivise these affluent communities to continue paying for their services; after-all they make the disproportionate contribution to our fiscus.
Madam speaker, the City of Tshwane currently has two active municipal owned entities namely: the Sandspruit Works Association and Housing Company Tshwane. The Tshwane Economic Development Agency (TEDA) entity which is currently dormant has been partially activated by the process of appointment of the Board of Directors. The budget for Tshwane Economic Development Agency (TEDA) will incorporated in the 2012/13 adjustment budget.
The expenditure budget allocated to Housing Company Tshwane for MTREF 2012/13 is R48
816 000. The expenditure budget allocated for Sandspruit Works Association for the MTREF
2012/13 is R1 206 687 000. The capital program of the city is indeed an arsenal for the fight against poverty, unemployment, inequality and addressing of the infrastructure backlogs thus standardising services through the city.
The capital budget for the approved 2011/12 financial year was R 3 185 417 740 having increased to R 3 403 637 183 during adjustment budget, for the 2012/13 financial year the city has taken a bold step and increased the capital budget to R 4 353 046 899. The city has increased its capital budget programme by R 1.1 billion which equates to 27%
increase from last year.
Madam speaker this audacious step signals a profound shift from a consumption driven City to an infrastructure investment driven City. The detailed capital programs per regions will be outlined later. Madam Speaker the total capital budget programme for the MTREF 2012/13 is R 13. 8 billion, which is R 2.7 billion more than the council approved MRTEF 2011/12. This capital infrastructure investment program will ensure that the city creates new economic nodes and revitalise the economy in the traditionally disadvantaged township.
Madam Speaker in the State of City Address, the West Capital Precinct was mentioned as one of the game changer which will serve as a catalyst to unlock development through a process of developing reform strategies which among others will alter the inner city urban reform. The SCM process for the appointment of suitably qualified developers has been activated.
It is my pleasure to announce that phase 1 of the project was finalised on the 25th May 2012 and the total development cost of Phase 1 is projected to be over R 6 billion. The process of appointing developers for the remainder of the project is scheduled to be completed in August 2012. This indeed is a breakthrough in our bold reform program to undermine apartheid spatial planning and bring people closer to centres of economic production.
As part of developing and creating our economic metropolitan nodes, the City has just finalised the development of Zone of Choice Spatial Development Framework. In order to unlock the economic potential of this node, the following projects have been included in the city's midterm budget: an amount of R35 100 000 for the upgrading of Lavender Road, and an amount of R12 200 000 has been allocated towards the Wonderboom Airport access along Lindveldt Avenue.
Madam speaker, City Planning and Development Department is in the process of finalising Centurion CBD Spatial Development Framework to guide public and private sector investment. The City has received a development proposal for the development of Centurion Symbio City Development on the Centurion Lake.
The development will be the tallest building in Africa with 110 floors with the following development rights: 100 000m2 of retail, 350 000m2 of office and hotel development, and 1000 residential units. The development will create approximately 10 910 temporary jobs during construction and 4 804 permanent jobs post construction.
City of Tshwane has to date installed 16 447 solar water geysers with the assistance from Department of Energy and Eskom. By the end of June 2012, the municipality will have increased the solar water geysers installed to 17 100 around the city. The solar water geysers are installed in Garankuwa, Mabopane, Botshabelo, Rethabiseng, Olievenhoutbosch, Hammanskraal, Nellmapius and Mabopane.
In line with the city's strategic focus of building sustainable communities with clean, healthy and safe environments promotion of safe and integrated social services, the Ward-based Deployment Strategy of Metro Police aimed at deploying ten officers per ward at any given time is indeed becoming a reality.
As stipulated in our state of city address that the strategy will evolve in three interlinked phases:
The first phase is renewal of the ageing Metro Police fleet, Madam Speaker it is my pleasure to give feedback to Council that the City has taken ownership of 40 new Metro Police high performance operational vehicles, 7 off-road operational vehicles and 53 mountain/road bicycles.
As a commitment to a safer city through implementation of the ward based deployment strategy, the City for the MTREF 2012/13 has further allocated R 72 million for acquisition of specialized metro police vehicle. Madam speaker, the city is coming from its fourth instalment of the Tshwane International Trade and Infrastructure and Investment Conference (TITTIC) which according to the feedback from the delegates was a resounding success.
An enabling climate for investment is critical for economic growth and social development within the City. Thus the need for the City to invest in infrastructure to catalyse economic growth as the fight against the triple challenges of unemployment, poverty and inequality becomes an imperative. The City has taken a conscious decision to develop and promote a partnership with the automotive industry due to its strategic importance.
In order to demonstrate that the City is an active participant in this partnership and act as an enabler, an amount R 250 million for the next two year has been budgeted for the doubling of Simon Vermooten Road in Region 6. This project Madam Speaker will have positive economic outcomes especially in making sure that the Ford Motor Company anchored in Waltloo continues to be competitive.
Madam speaker in-line with the strategic focus of provision of municipal infrastructure and services, the Bus Rapid Transport System (BRT) which relates to the inner transport infrastructure receives an amount of R 2.2 billion for the three years which amounts to R 576 million for 12/13; R 642.6 million 13/14 and R 963 million for 14/15 Financial Year (FY).
As committed, the comprehensive update report will be table at Council. The fleet for Tshwane Bus Services will be replenished with an amount of 120 busses over the mid-term and funding was approved as part of the turnaround. The acquisition of new buses will inevitably double the revenue per kilometre and will reduce the fuel bill, with the introduction of the automated fare.
Collection (AFC) system we will also be able to account for all our buses and we will have accurate figures on kilometres travelled. Madam speaker, the City of Tshwane has embarked on an ambitious formalization programme, formalisation brings dignity to our people. The City has embarked on Proclamation process, which addresses the problem of people moving into their houses but is unable to get title deeds due to the fact that the areas remained un-proclaimed.
In 12/13 financial year the City has budgeted R262 million to complete about 55 kilometres of roads and storm-water system. A total of 8051 households will be able to get their title deeds. The City will be installing services in Hammanskraal West extension 2 to benefit about 2800 households. In Zithobeni 8 and 9 nearly 2500 households will benefit as we will be investing about R60 million towards services. We will also be building top structures for qualifying beneficiaries in the area.
Madam Speaker, the City is continuing with the programme of rolling out 240 l bins in exchange for the 85 l bins in various townships. An amount of R 85 million for the MTREF has been allocated for the replacement of 85 l bins with 240 l and this is part of programme of standardization of services.
Madam speaker, on the 18th May 2012 we launched the Two Parks per Ward Programme and
this was marked by the development of a symbolic "24-hour Echo Park" in ward 77
Olievenhoutbosch. An amount R 150 million for 2012/13 has been invested against the programme of Two Parks Per-Ward. The Two parks Per Ward Programme will speed up landscape beautification in Tshwane and overall address park development backlogs.
The proposed development and transformation of the open space network and managing it as eco parks provide environmental and social spin-offs such as reducing illegal waste dumping into the stream and improving human health conditions. In the state of the city address we reported that a procurement process to appoint suitability qualified developers strategically placed parcels of land within the city was nearing conclusion. It is my pleasure to report that we have concluded the process and we received proposal to that total development cost value of R 162 926 879 272.00.
Tarrifs
The proposed tariff increases for the 2012/13 MTREF, for property rates, electricity and sanitation are 12% and for waste removal and water, 25% and 10% respectively. Revenue generated from property rates is R3,7 billion for 2012/13 and increases to R4,5 billion in the outer year of the medium term. At 18,2% of the operating revenue base, this remains a significant funding source for the municipality.
Service charges relating to electricity, water, sanitation and refuse removal constitutes the biggest component of the revenue basket of the City, totalling R12,5 billion for the 2012/13 financial year and increase to R15,7 billion by 2014/15. For 2012/13 services charges amount to 61,5% of the total revenue base. This growth can mainly be attributed to the increase in the bulk prices of electricity and water which have significantly increased from R2.7 billion in 2008/2009 to R9 billion in 2014/15.
Madam speaker, Eskom's drive to maintain security of supply over the next few years resulted
in a Power Purchase Agreement with the city to the effect that electricity generated by the city's power plants are sold to Eskom. An amount of R380,0 million has been provided against revenue and expenditure for this purpose.
The contract will be re-negotiated for implementation in the new financial year and should additional revenue be generated, it will be included in the 2012/13 adjustments budget to be utilised for repairs and maintenance of the power stations, improving generation capacity. An additional amount of R14,0 million was provided to the Housing and Human Settlement Department for the provision of water through water tankers (R8,0 million), the provision of chemical toilets (R1,0 million) and the marking and registration of shacks (R5,0 million).
The proposed tariff increases for the 2012/13 MTREF are more than the anticipated increases contained in the 2011/12 MTREF (totalling R278,0 million). The additional revenue to be generated owing to the higher percentage increases in tariffs amounts to the following:
Expected Revenue (R’million)
Electricity: (1% above NERSA indication) 78,0
Property rates (4%) 132,0
Sanitation (4%) 20,0
Waste removal (10%) 48,0
Total: 278,0
The higher proposed increases were necessitated owing to the following reasons (additional expenditure requirements):
- Capital expenditure funded from own sources increased by R298,1 million resulting in the borrowed funding of “own” capital expenditure ratio to decrease from 77,3% to 70,1%
- Early works on the Tshwane House project amounting to R39,0 million.
- An amount of R18,6 million was provided to the Service Infrastructure Department for mainly waste water purification.
- Repairs and maintenance to the ODI stadium amounting to R6 million.
- Moving towards full cost recovery with regards to the Waste Removal Service (R48,0 million).
- R130,0 million for the filling of critical unfunded vacancies and implementation of the new organisational structure. Focus on a safer city (appointment of Metro Police officers).
Madam speaker, the media space is littered with deliberate and misleading communication that the overall proposed tariff in Tshwane is 25%. In actual fact the average of the proposed tariff increases is 12,0% and this increase Madam Speaker compares well with our peers in the
Gauteng City Region and Coastal Metros.
The following stipulations in the Property Rates Policy are highlighted:
- The first R15 000 of the market value of a property used for residential purposes is excluded from the rate-able value (Section 17(h) of the MPRA). In addition to this impermissible value, a further R35 000 reduction on the market value of a property will be granted in terms of the CoT Rates Policy
- 35% Rebate will be granted on all residential properties (including state owned residential properties).
- 100% Rebate will be granted to registered indigents in terms of the CoT Indigent Policy.
- Including pensioners, physically and mentally disabled.
- A maximum/total rebate of 50% will be granted to owners of rate-able properties subject to total gross income of the applicant and/or his/her spouse, if any, not exceeding the amount equal to twice the annual state pension as approved by the National Government for a financial year or
- A maximum/total rebate of 40% will be granted subject to joint income of the applicant and/or his/her spouse if any, that is more than twice the annual state pension, but not exceeding R107 100 (increased with 6% from R100 980) for a financial year (amount reviewed during the CoT’s annual budget process)
The increase in the price of bulk water, supplied to municipalities is 11,3%.
It is estimated that bulk water purchases from Rand Water for the 2012/13, 2013/14 and
2014/15 financial years, will amount to R1 143,5 million, R1 307,2 million and R1 477,1 million respectively. The 10% proposed increase in water tariffs applicable to the residents of Tshwane from 1 July 2012, will generate R200,0 million additional revenue.
The total revenue expected to be generated from sanitation services amount to R555,0 million, for the 2012/13 financial year. NERSA indicated a guideline bulk purchase increase (from Eskom) for municipalities, of 13,5% and a tariff increase for municipalities customers of 11,03%.
The bulk purchases with regards to the selling of electricity to consumers within the CoT boundaries (excluding the Power Purchase Agreement with Eskom) amounts to R5 500,0 million, R6 242,5 million and R7 085,2 million for the 2012/13, 2013/14 and 2014/15 financial years respectively.
The specific circumstances of the CoT necessitated an average increase of 12,0% which will be submitted to NERSA for consideration and approval. The expected revenue to be generated from the sale of electricity amounts to R8,8 billion (estimated 12,0% increase), R9,8 billion (estimated 12,0% increase) and R11,0 billion (estimated 13,0% increase) for the 2012/13,
2013/14 and 2014/15 financial years respectively.
Currently solid waste removal is operating at a deficit. In normal terms the rendering of this service should at least break even, which is currently not the case. The CoT therefore embarked on a solid waste strategy to ensure that this service can be rendered in a sustainable manner over the medium- to long-term.
The deficit regarding the rendering of this service should be managed towards breaking even in 2015/16, as the revenue base is not sufficient to accomplish such earlier. Thereafter, the strategy should be amended to result in a surplus of at least 10% by 2020/21.
A tariff increase of 25% for solid waste removal per annum over the three year MTREF is proposed, especially owing to the cost of absorbing the labour brokers in a phased approach and roll out of a standard service level in all areas. Every 1% tariff increase generates R4,9 million and it will therefore take more than 3 years to achieve full cost recovery.
The proposed tariff increase will result in revenue to the amount of R606,3 million, R756,3 million and R945,3 million being generated for solid waste removal during the 2012/13, 2013/14 and 2014/15 financial years respectively.
Capital budget
The capital budget of R4,4 billion for 2012/13 relates to an increase of 27,9% to the, 2011/12
Adjustments Budget. For 2013/14 and 2014/15, this programme increases to R4,5 billion and
R5,0 billion respectively. Madam speaker, the Capital Budget is funded from internally generated revenue (including Public Contributions and Donations), borrowings (loans and/or bonds) as well as grant funding.
The 2012/13 and 2013/14 allocations as were approved with the 2011/12 MTREF was utilised as the departure point for the compilation of the 2012/13 MTREF. The internal funding affordability level was modelled at approximately R2,0 billion over the medium-term.
Madam speaker, Integrated development planning in the South African context is amongst others, an approach to planning aimed at involving the municipality and the community to jointly find the best solutions towards sustainable development. Furthermore, integrated development planning provides a strategic environment for managing and guiding all planning, development and decision making in the municipality.
It is important that the IDP developed by municipalities correlate with national and provincial intent. It must aim to co-ordinate the work of local and other spheres of government in a coherent plan to improve the quality of life for all the people living in that area.
The City of Tshwane is the Water Services Authority in its area of jurisdiction in terms of the Water Services Act, 1997. The City also performs the functions of the Water Services Provider in Tshwane, with the exception of Winterveldt, Mabopane and Ga-Rankuwa, where a municipal entity wholly owned and controlled by the City is performing the functions on behalf of the City.
An organ of state, the Magalies Water Board, is contracted in terms of a performance agreement to execute the Water Services Provider functions in the Greater Temba and Hammanskraal areas. The City of Tshwane is in the process to take over these functions from Magalies Water. The City is determined to improve these supply systems in order to ensure that all areas of the City are operated and managed to ensure excellence in drinking water quality management.
A thorough strategic review of the greater City of Tshwane Waste Water Treatment Works (WWTW) was completed in 2011 and an upgrade programme was compiled to comply with the waste water treatment standards. A total investment of R2,1 billion over the next 5 years is needed to upgrade and extend the WWTW to comply with standards and meet expected growth in waste water volumes. This programme forms part of the MTREF.
Madam Speaker these are some of highlight projects that will be under taken during the medium-term includes:
- Environmental Management (replacement of bins) – R85,0 million
- Acquisition of Land – R301, 9 million
- Transportation initiatives – R2,2 billion
- Upgrading of Stadiums – R 338,7 million
- Fire fighting, emergency and Metro service vehicles – R100,0 million
- Hostels – R130,0 million
- Electricity for all (backlog eradication) – R178,0 million
- New Bulk Infrastructure – R616,0 million
- Public lighting – R71,0 million
- Automated meter reading – R300,0 million
- New waste water treatment works – R1,1 billion
- Upgrading and renewal of sewers – R81,6 million
- Bulk supply and backlog eradication of water R 487 million
- Construction of the Cullinan Library Park which will be first flagship Library Park in Tshwane for R20 million.
- Centurion Lake – R 10 million
- Sustainable Agricultural Villages (SAV) as part of promoting local economic growth.
This concept of agricultural villages is aimed at creating community based assets that facilitate job creation and income generation opportunities as well as development of entrepreneurs. An amount of R 30 million has been budget for SAV. With regard to the Tsosoloso project, we have spent R 9.5 million on technical assistance in the 2011/12 financial year preparing the following plans;
1. Business Plan for Olievenhoutbosch Township
2. Business Plan for Atteridgeville, Saulsville and Lotus Gardens
3. Business Plan for the Mabopane and Soshanguve townships
4. Business Plan for the Temba and Hammanskraal areas &
5. Business Plan for Zithobeni, Refilwe and Ekangala townships.
These plans were submitted in February 2012, and they are in a final stage of approval. Capital Projects for implementation in the 2012/13 financial year will be selected from these Business plans upon approval. The focus for the new financial year will be around the Urban Core areas in line with the Tshwane Metropolitan Spatial Development Framework.
The areas around the Stations are regarded as priority nodes and focus areas for implementation. A maximum of four projects will therefore be implemented with the allocated R50 million from the Neighbourhood Partnership Development Grant from National Treasury.
Region 1 Capital Programme
The total mid-term budget for capital programmes in region is R 3.6 billion for the three years. The highlight projects links to region 1 are as follows:|
- An amount of R 40 million for the midterm has been allocated for electrification of Winterveldt which will impact ward 9, 12 and 24.
- The upgrading of the Soshanguve Giant Stadium has been given a R 318 million and Madam speaker it is expected that Giant Stadium will be completed during the 2013/14.
- An amount of R 90 million for the mid-term has been allocated for the storm water drainage system in Garankuwa which impact ward 30,31 and 32.
- Eradication of the flooding backlogs in Soshanguve South and Akasia, an amount of R 56 million has been allocated for the mid term.
- Upgrading of Mabopane roads which will impact ward 19.20,21 & 22 an amount of R 55 million has been allocated and R 20 million for eradicating of flooding backlogs in Mabopane.
- For the construction of internal roads which will impact 19,20,21,22, 30, 31 & 32 an amount of R 178,6 million has been allocated.
- Housing and Human Settlement an amount of R 1.7 billion has been allocated for formalisation programme linked to housing allocation.
- An amount of R 2.9 million has been allocated for the development of the Klip- Kruisfontein cemetery in ward 90.
Region 2 Capital Programme (Hammanskraal)
The mid-term capital budget for region 2 is R 3.03 billion and the following projects linked to the region are highlighted:
- The development of the cemetery in the north further fiscus injection to an amount of R29.4 million after purchase agreement has been concluded during 2011/12 financial year.
- For replacement, upgrade and construct of water treatment works an amount of R 1.18 billion has been allocated for the midterm.
- An amount of R 16 million has been allocated for construction of a new clinic in Doornpoort.
- Further development of Hammanskraal Multipurpose Sports and Recreation Centre and amount of R 20 million has been allocated.
Region 3 Capital Programme
Amount of R 667.9 million has been allocated for capital programs in region 3 for the mid-term budget. Let me highlight the following flagship capital programs in the region :
- An amount of R 13.5 million has been allocated for the construction of a new clinic Gazankulu clinic next to an informal settlement in Atteridgeville.
- An amount of R 15 million has been allocated for extension of Danville clinic.
- An amount of R 55.4 million has been allocated for redevelopment of hostels in Saulsville (Phase 3b and 4a).
- Construction of Lotus Gardens Multi-purpose Sports facility an amount of R 10 million has been allocated.
- An amount of R 50 million for the mid-term has been allocated for upgrading of Maunde Street.
Region 4 Capital programme
For the mid term bugdet an amount of R 115.4 million has been allocated for capital programs in region 4.
The following are the highlights of the pragrams in the region:
- An amount of R 15 million has been allocated for the extension of Olivenhoutbosch clinic. An amount of R 15 million has been alloacted for the Olivenhoutbosch Multi- purpose Sports Centre.
- For road improvements an amount of R 6.5 millionn has been allocated.
- Upgrading of sewer systems to the value of R 24.6 mililion.
- Upgarding of the ladium secondary network R4.5 million
- Construction of cycle and pedestrian paths R8 million
Region 5 Cpaital programme
An amount of R 272.7 million has been allocated for the capital programs in region 5 and highlights of the projects are as follows:
- For the upgrading if the Fire House in Rayton an amount of R 3.5 million has been allocated.
- An amount of R 15 million for the mid-term has been allocated Sustainable Agricultural Villages (SAV).
- An amount of R 10 million for the midterm has been allocated for water supply in the agricultural holdings.
- As indicated before the first Library Park in City will be constructed in region 5 and an amount of R 20 million has been allocated.
- The programme for replacement worn out networks pipes region 5 has been prioritized and an amount of R 140 million for the midterm has been allocated.
Region 6 Capital Programme
An amount of R 796 million has been allocated for the capital programs in region 6 and highlights of the projects are as follows:
- An amount of R 15 million has been allocated for the Kleinsondert Sustainable Agricultural Village (SAV).
- The redevelopment of hostels in Mamelodi has been prioritized an amount of R 65 million for the midterm has been allocated.
- An amount of R 163 million has been allocated for the replacement and upgrading of redundant bulk pipeline infrastructure in various wards.
- An amount of R 82.5 million has been allocated for the Moreletaspruit Outfall sewer.
- The construction of Solomon Mahlangu Freedom Square – Cultural Centre has been prioritised and an amount of R 36 million for the midterm has been allocated.
- An amount of R 9 million for storm water drainage for Mahube Valley has been allocated.
- R 34 million has been allocated for flooding backlogs in Mamelodi, Eersterust & PTA Eastern areas
Region 7 Capital Programme
An amount of R 122.1 million has been allocated for the capital programs in region 6 and highlights of the projects are as follows:
- The replacement of placement of swivel bins in Metsweding has been prioritized and an amount R 4 million has been budgeted.
- An amount of R 10 million has been budgeted for the construction of EkangalaCommunity Library.
- The project for upgrading of roads from gravel to tar in Zithobeni and Ekangala has been prioritised and an amount of R 50 million for the medium term has been allocated.
- An amount of R 10 million for the upgrading of Fire House in Ekangala has been budgeted for the 2 years.
- The project for the upgrading and extension of Zithobeni Clinic has been prioritized and an amount of R 15. 5 million in the mid-term and extension of Rethabiseng clinic R 13. 5 million has been budgeted.
- Development of cemetery in ward 102 has been allocated an amount of R 10 million for the mid-term job creation. In conjunction with efforts from our partners and entities, the city has committed to create no less than 55 000 EPWP jobs this coming financial year. In addition to the operational and capital resources that departments use for the short term job creation, sufficient resources to the tune of R60m were further allocated to the project for each of the 3 years.
Free Basic Services: Assisting the poor
The city is robustly investing by the increase in capital projects, but will remain to assist the poor with free basic services of double the amount recommended by national government to accommodate larger indigent households.
Households that cannot pay for services and are registered as indigent, in terms of the Indigent policy will again receive 12 kℓ of water and 100 kWh (units) of electricity and pay no property taxes. The target is to register 150 000 indigent households by 2016. Therefore 110 000, 130
000 and 140 000 households is targeted to be registered in the 2012/13, 2013/14 and 2014/15 financial years respectively.
It should be noted that only formalised indigent households (registered properties, within municipal accounts attached thereto) can be registered, in order to
receive free basic metered services.
This will cost the city R556 million Rand in 2012/13 and this is the investment and commitment the City is making to the poorest of the poor. The number of households in informal areas that receive free services and the revenue foregone of these services (eg. the provision of water through stand pipes, water tankers, etc) are not taken into account in this amount.
Integration of Staff
Integrating staff from the erstwhile municipalities has been progressing well with almost all staff seconded to regions and departments. Council will soon be deliberating on the placement and migration policy that will allow the population of the regionalized organizational structure.
We remain aware that a journey of a thousand miles must begin with a single step. We remain as uncompromising and unrepentant when coming to the fight and assault against poverty, inequality and unemployment. Let us pull up our sleeves and get to work; the future is bright.
Thank you.
