Mogale celebrates debt relief as newly adjusted budget is approved
MCLM's adjustment budget was approved by the council and according to the mayor, from a financial standpoint, the municipality has made significant progress.
Mayor Lucky Sele is pleased to announce the approval of the 2024/ 25 adjustment budget and welcomes Mogale’s debt relief.
The budget was approved by Mogale City Local Municipality’s (MCLM) council on February 26 and celebrated the debt relief granted by the National Treasury.
“This marks an important milestone in ongoing efforts to stabilise and strengthen the financial position of our municipality while simultaneously improving essential services to the residents of Mogale City,” the mayor’s spokesperson, Palesa Molefe, said.
She further explained this budget is focused on addressing the most pressing service delivery needs within the municipality and it prioritises critical infrastructure maintenance and aims to directly improve the daily lives of residents.
According to Molefe, the proposed mid-year adjustment budget for 2024/ 25 shows a projected revenue increase of R5b. Operating expenses are estimated at R4.5b, with capital spending at R446m. This results in a surplus of R37m for the year and R448m over the Medium-Term Revenue and Expenditure Framework period. The surplus has increased by R23.2m compared to the original budget.
She said from a financial standpoint, the municipality has made significant progress.
“In the 2023/ 24 financial year, the municipality achieved a positive operating surplus of R584m. This surplus has been carefully managed and used to settle both current and outstanding creditor obligations. Additionally, the municipality’s creditors’ ageing analysis shows a marked improvement, with outstanding debt reduced from R682m in July 2024 to R275m in December 2024 – an encouraging improvement of R407m,” she explained.
The 2024/ 25 adjustment budget includes a 28.8% increase, directly addressing key service delivery demands.
Notable allocations include:
• Grass cutting: An additional R4.7m to maintain cleanliness and upkeep of municipal spaces
• Road maintenance (potholes): R2m was allocated for essential pothole repairs to improve road safety and accessibility. The allocated amount for the financial year is R8.8m
• Chemical toilets: R33m to enhance sanitation services in the municipality
• Landfill site management: R6m to ensure the proper management and maintenance of waste disposal sites
• Refuse removal: R12m for ongoing and improved waste collection services to ensure cleanliness and health standards
• Streetlight maintenance: R5.8m to maintain well-lit streets and enhance public safety
• Network maintenance: R12m allocated for addressing vandalism of electrical infrastructure (11/33kV high voltage and substations), ensuring a stable power supply
This budget will also target projects including:
• Flip Human Water Works: R17.7m
• Water pipeline replacement: R8m
• Refurbishment of Lusaka 2 & 3 sewer pump station: R12m
• Muldersdrift reservoir: R5.5m
• Refurbishment of the Ethembalethu sewer pump station: R14m
• Kagiso water supply tower: R5m
She continued that the adjusted cash flow budget indicates that the municipality will close its books with a surplus of R147m for the financial year. Furthermore, the adopted adjustment budget in its current form is funded by R43m.
Molefe also said the mayor expressed deep gratitude for the debt relief granted by the National Treasury which represents one-third of the municipality’s debt to Eskom.
“Mogale City recognises the importance of adhering to the conditions outlined by the National Treasury, particularly the requirement to maintain Eskom’s current account while continuing repayment arrangements. Our administration remains dedicated to ensuring financial discipline and upholding governance principles by the Municipal Finance Management Act and the Municipal Systems Act,” she stated.
Sele said the positive transformation in the municipality’s financial management, as acknowledged by the National Treasury, reflects the hard work and commitment of the entire administration.
“We thank the National Treasury for their invaluable support and commend the municipality’s finance team for their dedication to improving the municipality’s financial standing. As we move forward, the municipality remains firmly committed to transparent, responsible governance. Our collective efforts will continue to improve the quality of life for residents, ensuring a prosperous and sustainable future for all,” he said.
Share your views about the budget and what you expect from the government by sending an email to krugersdorpnews@caxton.co.za.
