Madam Speaker, Cllr Patricia Kumalo;
Executive Mayor of the City of Ekurhuleni Clr Mondli Gungubele;
Chief Whip of Council, Cllr Robert Mashego;
Members of the Mayoral Committee;
Leaders of all parties in Council;
Honourable fellow Councillors;
City Manager, Mr Khaya Ngema;
Chief Operations Officer, Dr Imogen Mashazi
The senior management of the Municipality;
The leadership of business and labour;
Members of the media;
Distinguished guests - including family representatives of the late Lungile Mtshali;
Residents, ladies and gentlemen.
Introduction
At the outset let me borrow some words from our beloved Nelson Mandela: “We enter into a covenant that we shall build a society in which all South Africans, both black and white, can walk tall, without any fear of their hearts, assured of their inalienable right to human dignity – a rainbow nation at peace with itself and the world.”
Madam Speaker, it gives me great pleasure to once again present the reviewed Integrated Development Plan (IDP) as well as the Medium Term Revenue and Expenditure Framework (MTREF) for the period of 2013/14 to 2015/16 – following the State the City Address presented by the Honourable Executive Mayor, Clr Mondli Gungubele, on 19 March.
In essence we are tabling a budget that seeks to continue to respond to the City of Ekurhuleni’s service delivery, economic and infrastructure development - in line with the Municipality’s theme for the year which is: Strengthening social maturity by advancing social cohesiveness in pursuit of a prosperous City.
Of note is that in the State of the City Address, the Executive Mayor articulated in detail the building blocks of a liveable, productive and future City, therefore this budget endeavours to deliver on that trajectory.
Furthermore, this budget will continue to give expression on our concerted efforts to accelerate service delivery commitments, namely:
- Building local economies to create more decent employment and sustainable livelihoods;
- Improving on the performance of our local public services and broadening of access to them;
- Building social cohesion and safer communities;
- Promoting more active public participation; and
- Ensuring more effective, accountable and clean local governance.
These commitments constitute a mandate we must deliver on during our term of office, and the budget is one of the critical tools that we must effectively utilise to realise these commitments.
Notably, the recent State of the City Address demonstrated the progress made by the ANC-led government in delivering basic services to our communities since the first democratic elections in 1994.
While there has been a significant achievement over the years, we are the first to admit that there is still a lot that needs to be done and we want faster change.
Madam Speaker, we have adopted the Growth and Development Strategy (GDS) 2055 which tells us the things that need to be done if we are to have a sustainable City that is capable of delivering. The GDS, which has been described by some experts as one of the best in the country, has contributed on how we have developed the budget, informed by its analysis.
As a country we have also adopted the National Development Plan (NDP), a strategic roadmap that draws all South Africans to a common vision. The 2030 plan calls upon us to reconstruct and develop our country by dealing with the identified primary challenges which include unemployment and infrastructure that is poorly-located, inadequate and under maintained. We cannot ignore the reality of dealing with the decaying infrastructure backlog, poor quality of public services, high level of corruption and a divided society.
Executive Mayor, whilst we have laid some foundation in dealing with job creation, in this budget speech we agree with the intensification of job creation activities and the funding thereof. This will make sure that we advance our fight against poverty and continue to deliver a better life for Ekurhuleni residents.
Through our continued and strengthened public participation, we received positive feedback which in turn enabled us to better understand their priorities. Ours is to live up to their expectations and spend this budget in a focused and impact-based manner as opposed to a piecemeal approach. It therefore remains key that we remind ourselves that for us to achieve this, we need a capacitated, stabilised, modernised and operational service delivery environment.
Socio Economic Outlook
Ekurhuleni municipality is located within a province that has a fast growing population. Therefore, we are not immune to the socio economic challenges presented by this ever growing population. This situation increases the strain on our budget, especially when it comes to the provision of basic services. Whilst we operate with minimum resources, it is worth mentioning that according to the Gauteng City-Region Observatory report (GCRO), Ekurhuleni residents are fairly satisfied with the services we are providing.
The Ekurhuleni current unemployment rate of 29% as per Statistics SA, coupled with a relatively low skilled population, is a serious threat to our City’s growth and development. The decline in the manufacturing sector has a serious impact on the City’s socio economic environment, in particular the high unemployment rate. This results in non-availability of sufficient disposable income, part of which would have been used to pay for services.
We have prioritised both the revitalisation of the manufacturing sector and Aerotropolis, a move that should give hope to the future of our economy and the people.
Madam Speaker, the NDP makes a point that for us to have an economy that will create more jobs the following, amongst others, must be undertaken:
- Increase exports;
- A more efficient and competitive infrastructure;
- Expanded skills base; and
- Support for small business.
These proposals are consistent with the GDS 2055 analysis which includes the long term economic investment on job creation instead of short term jobs, industry-based skills development, the addressing of the infrastructure backlog, and the mainstreaming SMMEs from the major value chain.
In his 2013 National Budget Speech, Minister of Finance Pravin Gordhan indicated that exports grew by just 1.1% in real terms last year (2012), while imports increased by 7.2%. Being a manufacturing-driven metro and with the opportunities presented by the OR Tambo International Airport, we must support our industry in exploiting more export opportunities.
The Minister further cited the fact that a significant increase in private sector investment and competitiveness is needed in the wider economy such as agriculture, manufacturing, tourism, and communications – every sector has to play its part in expanding trade, investment and job creation.
Focus areas
The following constitute key budget focus areas:
- Broadening of basic services as our core area of focus;
- Social support;
- Intensification of job creation activities as one of the building blocks of a liveable City;
- Infrastructure development as well as maintenance;
- Good governance and clean administration;
- Accelerating the implementation of flagship projects;
- Support for the development of youth, women and people with disabilities; and
- Social cohesion in pursuit of a prosperous City.
Revenue, Expenditure and Reserves
Our total budgeted operating revenue for the 2013/14 financial period is R26.5 billion, representing 11% growth from the 2012/13 adjusted budget. We successfully issued the fourth bond on the 13th of May 2013 with bids totalling almost R1.2 billion. The bond was overly subscribed by 1.48 times, it was amortised and without creating a sinking fund.
This shows that the investors have confidence in the financial performance of the Metro and do not see the risk of investing in it as being excessive.
Since the introduction of a tool to follow through on outstanding debts from other government departments, I am excited to announce that we have, from October 2012 to April 2013, collected almost R180 million which was above the collection target of R150 million.
Madam Speaker, our revenue base remains insufficient and needs to be improved over time if we are to realise our development path. We once more call upon our residents to demonstrate their citizenry support by prioritising payment of municipal services. Without their regular and timeous payment, the dream of delivering quality and sustainable services and that of being a developmental City will only be a farfetched reality.
It is befitting that we express our sincere gratitude to all individual residents and businesses who continue to pay their municipal accounts. It is out of these contributions that we are able to sustain and expand service delivery. To those who are neglecting their responsibility of paying, we will intensify the application of credit control measures as well as instituting legal action. Such strong measures are required if we are to manage bad debts and enhance our revenue collection.
We are worried about the theft of electricity which impacts on our revenue and we call for more radical by-law measures to be applied.
Our message is unambiguous – all those who can afford to pay must pay and continue to do so. For those who cannot afford, please note that no one will be assumed to be an indigent until such time they are registered. Therefore, those who qualify for an indigent benefit must take it upon themselves to come forward and register.
In light of the above, the Siyakhokha Siyathuthuka community-oriented campaign to create awareness is unfolding. Its objective includes, amongst others, communicating the importance of paying for services, identification of water leakages (loss), billing verification and promotion of E-Siyakhokha.
The programme will take the form of door-to-door by Siyakhokha Brigades, and culminate into road-shows during the second phase. We will be investing R1.6 million in the first phase of the programme, and are in the process of finalising the recruitment of Siyakhokha Brigades.
As we intend to move towards a 95% collection rate in future years, the Siyakhokha Siyathuthuka programme is certainly one of the key initiatives. It will kick start with the already identified nine customer care areas; mainly Eskom supplied areas with low payment rate.
On 11 July 2011, Ekurhuleni Metropolitan Municipality (EMM) rolled out Electronic Bill Presentment and Payment facility (eSiyakhokha). The objective of this facility is to improve service delivery by increasing the channels for delivery of customer statements and payment of EMM customer accounts. Since implementation there are 82 000 registered accounts and we have collected R213 million through this platform.
Our objective in 2013/14 is to increase the number of users and to extend the service to include SMS, email, and interactive statements.
With regards to billing, the accuracy and completeness of billing, including the use of interim billing, is still a challenge. I, however, want to give assurance that we will continue to explore a permanent solution. Various controls and processes have been implemented to ensure completeness of revenue and accuracy of billing.
Let me also indicate that reliable and correct data is an important input in the billing process. Whilst we acknowledge some dissatisfaction by account holders on the use of interims, the system used is based on previous recorded consumption in respect of each individual and will be aligned to actual consumption immediately when a reading is obtained.
In another attempt to increase collection rate, the re-introduction of debtor payment incentive schemes, such as interest waiver scheme, will again be evaluated during the year.
Financial stability
Madam Speaker, our ability to collect revenue as well as prudent revenue management has significantly contributed to our current status of being a financially viability municipality. This has been echoed by the third quarter liquidity result showing 69 days cash flow strength, meaning that we will be in a position to meet our obligations for the next two months in case we experience a negative eventuality on revenue collection. We are working towards meeting the 90 days National Treasury requirement.
Moving to the expenditure part, the 2013/14 total operating expenditure will amount to R26.5 billion which includes fixed costs such as human resources, depreciation, bulk purchases, provision for bad debts, interest expenses and contracted services.
Turning to the capital expenditure, our 2013/14 allocation is R2.9 billion, an increase of approximately 16.6% compared to 2012/13 adjusted budget of R2.6 billion. This is a result of increase in grant funding and unacceptable delays in the implementation of some 2012/13 projects. For the periods of 2014/15 and 2015/16 we are projecting capital budgets of R3.1 billion and R3.4 billion respectively.
Capital Investment Framework (CIF)
The capital budget was guided by the principles of Capital Investment Framework: 30% for Urban Restructuring, 39% for Upgrade and Renewal, 30% for Economic Development and 1% for Local Intervention. Project feasibility in terms of realistic timelines and budget phases, as well as geographical focus, were some of the elements taken into consideration. It should be explained that not all ward priorities will be addressed within one financial year.
The time has come for us to begin expanding our capital funding sources. In this regard, Finance Department will be at the forefront of exploring other infrastructure development funding avenues so as to complement our traditional capital sources. In light of our attempt to accelerate maintenance and curb a further decaying infrastructure, this indeed is necessary.
Whilst we intend to expand our capital funding sources, we equally need to build Capital Replacement Reserves (CRR) and our target is to set aside R750 million by the end of this financial year and we will continue to build it further in the next financial year.
We are seriously concerned about the low spending pattern with regards to the implementation of capital budget. Our communities can no longer tolerate under spending since they suffer the consequences, moreover considering that more still needs to be done. Poor planning as well as project monitoring and capacity constrain will no longer be considered as compelling reasons for under spending.
From Finance’s point of view we have introduced an early warning system for departments as one of our efforts of being an activist treasury, wherein MMCs and HODs are notified about spending and for them to explain negative variances on spending.
Political heads must take it upon themselves to monitor spending in their respective portfolios and that there must be consequences for non-spending.
Our Risk Management Department and Enterprise Project Management Office are also expected to complement our monitoring by flagging projects’ spending risks.
In terms of operating spending, our performance is fairly good. We must, however, explore opportunities of cost cutting and in exercising our treasury function we have requested departments to identify areas of possible cost savings.
Costs such as for telephone calls, printing, uncontrolled overtime, overseas trips that are of less value and other non critical office consumables are some of the cost cutting areas we will be focusing on. We have also noted the extent to which consultants are used to perform operational activities and with the implementation of the Institutional Review, we expect this to start declining.
In principle, costs that are not directly essential for the carrying out of operations must be significantly curbed. Equally, our supply chain management has a responsibility of procuring economically and the immediate establishment of a Cost Management Unit is a necessary control measure. Beyond the budget as proposed, the departments were given an instruction to provide a saving of 6% for general expenditure. All of these Madam Speaker are a clear indication of austerity measures we are putting in place.
Social Support Package
As a caring government, we have a responsibility to provide social support to poor communities. We have allocated over R2 billion a year for social support package. This is a relief to the disposable income of account holders and a clear indication of a caring municipality.
This support covers, amongst others, free basic water and sewer of 6kl per household (9kl for indigent), free basic electricity of 100Kwh (including Eskom supplied areas), refuse collection at no cost for indigents, 100% assessment rates rebate to indigent households and the first R150 000 assessment rates exemption to residential properties, funeral support to indigents, and water and ablution facilities to informal settlement.
In its current form, our social support package is more than what we receive as an equitable share grant.
Madam Speaker and fellow Councillors, the municipality is currently piloting Business Process Management for indigent registration in three sites, namely Germiston, Kempton Park and Tembisa. This will assist in improving the 21 days turnaround response time to applications.
Taking into consideration the extent of support we provide to households, inclusive of registered indigents, we have noted with grave concern the excessive use of water which is not paid for. We are appealing to the people of Ekurhuleni to please use water responsibly and within the perimeters of household affordability. We are writing off almost R485 million as a result of excessive water usage and losses each year, and this cannot continue.
Water is a scarce resource – let’s all protect amanzi!
Local Intervention Initiatives
Madam Speaker, I wish to reiterate the excitement of the Executive Mayor in announcing that the Lungile Mtshali Poverty Alleviation Programme has been allocated R101 million. This budget shows clearly our commitment to this project which will see each ward receiving R1 million.
The late Cllr Lungile Mtshali and former MMC for Finance, may her soul rest in peace, was a servant of the people and was a kind person, living up to her name. Fellow Councillors it is, therefore, not a coincidence that the programme which she pioneered will continue her legacy of community upliftment.
This allocation will be used to advance our agenda of addressing ward priorities thus closing the service delivery gap in our communities. Critical is that its utilisation must contribute to local job creation and social urbanisation – while also ensuring that communities are at the forefront of taking the lead in the improvement of their places of residence.
The criteria for allocation will be communicated through the project milestone programme in order to provide better understanding on the purpose for which the funds are to be used.
The soon to be finalised targeted procurement policy will, in addition to our multi-prong job creation initiatives, assist in redressing the economic imbalance and spread access to economic opportunities particularly amongst women, youth and people with disabilities.
As to the Grant in Aid, an amount of R22.5 million will be allocated as part of supporting initiatives aimed at assisting the realisation of our municipal priorities as well as the advancement of social cohesion and developmental milestones. The Grant in Aid policy will be reviewed in due course.
Tariffs
In order to continue providing sustainable services, the Municipality should be in a position to cover costs associated with the provision of services. In this regard, some of our operational cost drivers may necessitate an increase above the urban consumer price index.
It is on this basis that we review our tariffs in order to ensure that our revenue base is able to fund sustainable service provision and therefore propose the following tariff increases:
- On assessment rates, NO tariff increases are recommended this year. There is, however, a new valuation roll that is being introduced as per the Municipal Property Rates Act 6 of 2004 and this will result in an increase to most property owners. The residential rebate of R150 000 will remain unchanged. We granted extension for objections following the late distribution of section 49 notices due to the Post Office strike, which was called off on 18 April 2013. The new valuation roll will come into effect from the 1st of July 2013.
- A 9.82% increase for Water for both residents and business is proposed.
- For solid waste, 15% is proposed. To assist the poor, a rebate of 15% will be granted to all residential households with a property value of less than R300 000 and a stand size of less than 300 square metres.
- A 7.6% increase for Sanitation for both residents and business.
- For electricity, a decrease of 7.69% and 8.5% increase is proposed. The proposed increases are compliant to the guidelines as set out by NERSA. The increases for bulk purchases will be 7.3%. We will continue to pursue discussions on taking over other Eskom supplied areas.
- Cemetery fees - an increase of 0% to 5.5% is tabled. Ekurhuleni cemetery fees remain affordable in comparison with Johannesburg, Tshwane and Midvaal.
It is important to mention the fact that residents are the ultimate beneficiaries of these proposed tariff increases. I also want to indicate that our ratepayers must derive value for money out of these proposed increases, therefore business must be “unusual” and that departments must focus on delivering quality services.
- Clean water provision must be sustained;
- Electricity must be supplied with minimal disruption;
- Grass must be cut and picked up;
- Waste must be collected as per schedule and neatly;
- Potholes must be properly fixed.
Madam Speaker, other proposed tariff increases are contained in the budget documents for Council approval as well.
Capital allocation per department
The allocation of capital budget is to a great extent influenced by the community inputs on the Integrated Development Planning (IDP) process and some of the common priorities which emanated from this process include:
- Construction and tarring of roads and storm water;
- Human settlements;
- Construction and upgrading of sport facilities;
- Clinics;
- Installation of high mast and street lights; and
- Construction and upgrading of community halls, multi-purpose centres, libraries, taxi ranks and parks.
I must allude to the fact that there was an improvement in the manner in which consultation and public participation was carried out. Political parties were taken into confidence with regard to the principles of the IDP, budget and pricing. This was done prior to the presentation of the draft IDP and Budget. Another platform was created through Oversight Committees to further interrogate the budget details. The public participation process further granted Councillors, as public representatives, an opportunity to make their comments.
Through the Budget Steering Committee process, the readiness of departments was ascertained as to project planning and ward priorities alignment to budget, procurement and capacity to implement budget to a maximum level.
Such a process, therefore, guided the following proposed departmental allocations:
Economic Development
The department has been allocated R69 million to respond to the economic realities of unemployment, skills development and to provide support for small business.
- R11 million for Township Enterprise Hub;
- R5.8 million for Township Economic Development;
- R5 million for Community Agricultural Projects;
- R4 million for trading stalls; and
- R10.4 million for Extended Public Works projects.
As we roll out the multi-year budget and through the job creation strategy, the department will embark on the following programmes:
- R6 million for the Recognition of Prior Learning Programme in order to grow the number of artisans in Ekurhuleni;
- R15 million for Youth Work Readiness and Experiential Learning Programme in order to place matriculants in various companies or organisations with a monthly stipend of R1 500 per month over 12 months;
- R15 million for the Young Graduate Placement and Experiential Learning Programme in order to place graduates in various companies or organisations with a monthly stipend of R2 500 per month over 12 months.
It is envisaged that through these financial investment and strategic partnerships, the EMM will contribute to the creation of an additional 2 000 work, or income earning, opportunities in the regional economy annually. The department has appointed 20 learner contractors to implement projects to the value of R48 million under the Township Economies Programme.
Water and sanitation
A total budget of R419 million has been allocated. This will cover:
- R150 million to deal with water loss. The successful implementation of this programme will not only protect our revenue, but also place us in a position to further broaden water access;
- R62 million for the Palm Ridge Phases 5 and 6 bulk and essential services;
- R11 million for human settlement essential services;
- R12 million for Etwatwa Ext 35 essential services; and
- R2.1 million for water services vehicles.
In 2013/14 we are providing free 6 kilolitres of clean water at a cost of R328 million to all households as well as an additional three kilolitres of free water to registered indigents at a cost of R13 million. The cost of free sanitation service is R270 million with an additional R10 million for registered indigents. We will continue to do so, including to informal settlements.
Madam Speaker, as part of broadening access and as pronounced by the Executive Mayor in his State of the City Address, we will, through our multi-year capital budget connect 44 000 households to water and sanitation. In addition, the multi-year budget will ensure that 80 informal settlements receive alternative sanitation facilities.
Roads and storm water
An amount of R648 million will be allocated to this department compared to the R581 million allocated during 2012/13. This clearly demonstrates that we are serious about responding to some of the infrastructure backlog as guided by the Growth and Development Strategy analysis. This allocation will cover 97 projects, including:
- R196 million for continued rehabilitation of roads in the six regions;
- R79 million for roads infrastructure in the low cost housing areas;
- R60 million for the construction of tertiary roads;
- R57 million for storm water on an as and when required basis; and
- R14 million for traffic calming measures such as traffic signals and speed humps.
Of note is that we have increased the allocation in respect of the Eastern Region for both the rehabilitation of roads and road construction for low cost housing from a total of R44 million to R136 million. This is in line with a view of focused development.
Transport
The department has been allocated a capital budget of R373 million to pursue projects:
- Integrated Rapid Public Transport Network (IRPTN) at a cost of R301 million of which R243 million is funded largely by the Public Transport Infrastructure and Systems Grant and R58 million from our fiscal. The full implementation of this project will have a major spin off socially, economically and in infrastructure. Jobs will be created, travelling times will be seamless and critically the cost of travelling will be affordable in the future.
- R39.5 million for the upgrading of six taxi ranks covering Germiston Station Taxi Rank, a joint venture between Ekurhuleni, Passenger Rail Agency of South Africa (PRASA) and Gauteng Department of Roads and Transport; Germiston Station Taxi Rank; Bluegumview Taxi Rank; New Vosloorus Hospital Taxi Rank (Vosloorus); Palm Ridge Taxi Rank; Phuthaditjaba Taxi Rank and Ramaphosa Taxi Rank. Construction on the Ramaphosa Taxi Rank is scheduled to commence in this financial year whilst construction on the rest will commence in 2013/14 financial year until 2014/15.
- R12 million for the replacement of municipal buses.
Energy
In addition to the already connected 82.2% households as per the Census report, we have with the 2012/13 budget of R138 million already connected 580 households in the area of Chief Albert Luthuli Extension 2 and 3 as well as Endayeni, and will in due course complete the connection of 7 184 households in Palm Ridge Phase 5, Mayfield Extension 6, 7 and 8, Kwa-Thema Extension 3 and Chief Albert Luthuli Extension 5.
We have also spent R37 million for the replacement of 7 850 street lights across Ekurhuleni with energy saving lamps. Furthermore, we have spent R87 million on energy efficiency projects since the 2009/10 financial year which included, amongst others, the installation of 3 910 solar water heaters in Kwa-Thema, Volsoorus and Tembisa.
For the upcoming financial year we have allocated R354 million for the department to continue providing sustainable electricity and to expand connection thereof.
This budget will be used for:
- R174 million for network enhancement to curb electricity downtime and to comply with NERSA standards in respect of restoring power outages across the City, including corporate substations;
- R112 million for the electrification programme which will connect about 5 008 households in the 2013/14 covering Mayfield Ext 1, 9 and 11, Kwa-Thema Ext 5, Esselen Park Ext 3 and Chief Albert Luthuli Ext 6. We are planning to further connect 10 477 between the periods of 2014/15 and 2015/16;
- R26 million for the installation of protective structures and pre-payment meters to reduce electricity theft and thus protecting our revenue base;
- R19.6 million for the installation of 72 high mast lights per year for the next three financial years; and
- Provision of 12 solar high mast lights to informal settlements and the installation of 8 000 PV solar lighting units to informal settlements is planned for the 2013/14 and 2014/15 financial years with a budget of R11 million. This programme was successfully officially launched and work has already been completed at the following settlements: Zama-zama, Emlotheni, Umgababa, Homeseekers (Emlotheni 1) and currently busy with Thusong.
Human Settlements
Based on the current accreditation capacity, R71 million has been allocated for this department to implement the following significant projects:
- R15 million for land acquisition in order to provide new human settlements;
- R21 million for upgrading and refurbishment of Council owned rental stock; and
- R10 million for the Tembisa Urban Renewal project.
Certain implementation projects will also be taken over by EMM during the 2013/14 financial year in terms of Level 2 accreditation. An Annual Performance Plan (APP) has been prepared on accredited projects for 2013/14 at an amount of R191 million wherein 360 houses will be built. This allocation has been included in the operating budget.
In so far as the redevelopment of hostels, the State of the City Address has alluded to the fact that the Kwa-Thema, Thokoza, Wattville and Kwa-Mazibuko has been prioritised and will be jointly undertaken by Gauteng Government and Ekurhuleni Metropolitan Municipality.
We have also taken into consideration a concern that the current process of allocating houses overlooks backyard dwellers and as we acquire and build, they will be considered.
Health and Social Development
The department has an operational budget of R756 million and a capital budget of R91 million. The combination of this allocation seeks to ensure that we accelerate access to health care and to continue improving facilities to provide a comprehensive package of primary health care services to the community of Ekurhuleni. Key projects will cover:
- Increasing access to 80% HIV-positive clients by providing ARV services;
- Building and appointment of personnel for new facilities; and
- Reduction of rodent infestation.
In the current financial year the Health Department finalised the construction of Tembisa Health Community Centre (THCC) and 1st Avenue Clinic whilst the construction of the following clinics is continuing: Alra Park, Reiger Park, Joy, White City and Tamaho clinics. Tswelopele Clinic in Vosloorus, Motsamai and Palmridge clinics will be completed in the 2014/15 financial year. This is part of the long term commitment of building 17 clinics in the next five years. Two additional projects will be initiated for the extension and upgrading of Selope Thema as well as Esangweni clinics.
Environmental Resource Management
The department has been allocated a capital budget of R83 million of which R22 million will be used to deliver the Beautification of Lakes as part of the flagship projects and parks. In this regard the following lakes and parks have been identified, namely Boksburg, Germiston (which is nearing completion), Dries Niemandt and Blaauwpan, Murray Park, Winnie Mandela Park and President Park and four lakes in Benoni.
Furthermore, R21 million will be used to replace redundant fleet and procurement of specialised vehicles. Other funded activities are cemetery development, ground work, landscaping, building upgrades, water quality improvement and weed control. Grass cutting and horticulture maintenance are funded under the R609 million allocated for operations and of importance is that there must be a shift from the current ordinary service to quality service. Grass cutting must be accompanied by cleaning.
Waste Management
The total capital budget allocated to the department is R120 million and will be spent on the following:
- R43 million for the procurement of refuse removal vehicles to sustain and address service delivery backlog on waste collection in light of new developments;
- R6 million for the supply of bulk containers and recycling bins; and
- R42 million for the cell and storm water development at Weltervreden and Rietfontein, Rooikraal, Simmer and Jack and Platkop landfill sites to comply with the legislation.
A total of 64 000 informal settlement households that were without collection services will in due course enjoy the service with co-operatives being drawn into the mainstream of the refuse collection business in Ekurhuleni. Furthermore, we will roll out 240 litre bins in the 2013/14 financial year at a cost of R20 million.
Sport, Recreation, Arts and Culture
Madam Speaker, the department of SRAC is also central in our endeavour of advancing social cohesion. In this regard, we have allocated a total capital budget of R168 million compared to the 2012/13 adjusted budget of R115 million for the department to delivery on projects such as:
- R18 million for the construction of the Germiston Theatre which will be completed in the 2013/14 financial year;
- R2.5 million to upgrade memorial sites such as the Thami Mnyele wall of remembrance and the Indaba Tree (Kwa-Thema), which will be completed in the 2013/14 financial year;
- R33 million for the construction of new libraries in Brakpan and Tsakane which will be completed in the 2013/14 financial year. The upgrade to the Tembisa Library will commence in 2013/14 and completed in 2015/16;
- R43 million for the rehabilitation and upgrading of Boksburg, Kwa-Thema, Wattville and Duduza stadiums;
- R15 million for the rehabilitation of swimming pools, including Katlehong and Alra Park;
- R4.5 million for the rehabilitation of sport facilities as well as R3 million for the resurfacing of hard courts.
Our emphasis once more is that such investment must take sport development in the City to another level and produce quality sport participants capable of competing provincially, nationally and internationally.
Community Safety
Ekurhuleni Metropolitan Police Department (EMPD)
We have allocated R51 million to the department to continue creating safer communities through crime prevention, by-law and traffic law enforcement working in partnership with communities.
The budget will cover, amongst others:
- R16 million for additional vehicles - critical tools necessary for the execution of EMPD operations;
- R16 million for the construction of Tokoza and Zonkizizwe precincts, to be completed in the 2013/14 financial year, as well as planning for the Tembisa and Kempton Park precincts which will be constructed during the 2014/15 financial year; and
- R3 million for the refurbishment of some of the EMPD facilities.
Disaster and Emergency Management Services
The capital budget of R69 million has been allocated to the department to be used to implement some of the following strategic projects:
- Construction of Duduza, Zonkizizwe, Kwa-Thema, Germiston and Albertina Sisulu fire stations at a budgeted cost of R25.5 million. Duduza and Zonkizizwe will be completed in 2013/14 financial year, whereas Kwa-Thema and Germiston will be completed in 2014/15 financial year. Albertina Sisulu and Tokoza fire stations will be completed in 2015/16 financial year;
- R26 million for specialised vehicles. It is worth mentioning that 48 new and fully equipped ambulances will be in service in the new financial year. This will greatly ensure that our emergency services improve its efficiency and reach a wider population, inclusive of informal settlement areas.
Information and Communication Technology
Madam Speaker, as we embark on the Digital City programme, our immediate and primary focus is the stabilisation of the information and communication environment, as well as ensuring that both general and application controls are in place.
Furthermore, business processes and systems integration needs to be re-configured such that our systems enable us to improve local public service offering.
With a budget allocation of R153 million we therefore expect pragmatic and tangible results in addressing ICT focus areas, including digital city programmes such as fibre network which has been allocated R40 million and R50 million for the Digital City Services/Services Integrator.
Customer Relations Management
We allocated R65.3 million to this critical component of our institution so that we continue to improve the manner in which we interface with our communities. This allocation will cover, amongst others:
- R18 million for the upgrading of Brownfields Customer Care Centre;
- R5.5 million for Daveyton building upgrade;
- R1.3 million for Nigel building upgrade;
- R16.1 million for building upgrade and new building in Tembisa and Winnie Mandela;
- R15 million for Vosloorus building upgrade; and
- R15 million for the Unified Command Centre.
Closing remarks
In conclusion Madam Speaker, community needs will always exceed municipal financial resources. What is important, however, is that there must be a demonstration that there is a willingness on the side of the Municipality to address such needs, many as they are. This ANC-led municipality has, without a doubt, used its limited revenue to better the lives of our communities and to indeed restore their dignity.
Working together more with our communities is still going to be done. What we are presenting today is a budget that is underpinned by:
- The core mandate of providing sustainable basic services and their expansion thereof; and
- Our growth and development trajectory which inculcates infrastructure development, urban acupuncture and the modernisation of our City.
The anticipated outcome out of the R9 billion multi-years CAPEX is that of building a liveable, productive, cohesive and prosperous City.
We do all of these consciously and guided by our transformation agenda of improving the socio economic conditions of our people. In just 19 years, notable and significant progress has been made and there is no doubt that our transformation journey is on course.
The R520 million investment in flagship projects is in line with one of the pillars of our vision, that of being a preferred destination for growth and development. It is through investing in these catalytic projects that we can indeed build a developmental and prosperous City for our future generations.
As this ANC-led government we remain committed in running a clean, accountable and effective administration in order to deliver on our socio economic development agenda. The recent unqualified audit outcome (our fourth in a row) with a reduction in the number of findings from 109 to 87 is a positive step towards a clean audit.
As I have said in the previous budget speech, proper financial management and effective internal control systems are an integral aspect of good governance which all of us must embrace.
A process of reviewing the financial viability of our municipal entities is nearing finalisation and we are looking forward to the recommendations. The intention is to optimise the performance of these entities with minimum dependence on the Municipality. This is done in the interest of enhancing good governance.
I want to take this opportunity to convey special thanks to the team who worked tirelessly in the preparation of the IDP and Budget. To further thank the robust inputs and support from Councillors and the Budget Steering Committee. Most importantly, I want to appreciate community participation in the process, as all these things are done in the interest of serving them.
I once again wish to quote former President Mandela when he said, “It should never be that the anger of the poor should be the finger of accusation pointed at all of us because we failed to respond to the cries of the people for food, for shelter and for the dignity of the individual.”
Madam Speaker, I therefore table a budget for the people, based on their needs, growth and development.
I thank you.
