Will the approved Mogale budget be fundamentally spent?

From July 1, residents of Mogale City Local Municipality will have to dig even deeper into their pockets just to keep the lights on. With the approval of the recent 2023/ 24 budget comes a tariff increase and a R100m overdraft. This, while Mogale City citizens continue to wonder where their hard-earned money is going.

The budget was approved with a 50% plus one vote from the local council, meaning 42 councillors voted for the budget and two voted against it. The Democratic Alliance and Freedom Front Plus (FF Plus) abstained from voting.

These two parties indicated that the questions they raised regarding the budget were not adequately answered. But what does this all mean for the average Joe? The main increases will be 6% for property tax, 15.10% for electricity, 9.2% for water, 9.2% for sewage, and 6% for refuse removal.

The FF Plus released a statement saying they did not support this budget because of excessive tariff increases.

“FF Plus made it clear that residents can not be burdened with excessive tariff increases and the municipality should investigate different sources of income. Mogale City has let other sources of income slip through their fingers – like the Krugersdorp Game Reserve, the dilapidation of the Bob van Reenen Stadium, and public swimming pools that had to close due to maintenance neglect, to name a few. Mogale City deserves better than an ANC-led council which will burden their residents with huge tariff increases,” read a statement from the political party.

The R4.3b budget which was presented by MMC for Finance, Doreen David was increased by 15.3% compared to the previous year. This includes a plan to spend R470m on human settlements and R80m to improve infrastructure at the Chamdor Industrial Park. R42m has already been spent to construct a reservoir in Leratong and another R40m will be needed for this project to be completed. This will be in preparation to develop Kagiso Extension 21 to 26 and the Leratong Mall.

“The Government of Local Unity has refocused the municipality towards the provision of basic services in rural areas and informal settlements as has been done for urban areas.”

Another R16m will be invested for the installation of water standpipes to save money on outsourcing water tanker services. R20m will also be spent on the construction of sports complexes in the next three years, with R10m to go towards the construction of the Ga-Mogale Sports Complex. Another R32m will be spent on roads and stormwater networks – especially in the Rietvallei area and Kagiso Extension 13 over the next three years.

During his budget speech, Executive Mayor Councillor Danny Thupane said, “The people of Mogale City deserve nothing less than a dedicated, empathetic, listening, and responsive government that is in touch with their wants and needs.”

He added that Mogale City’s unemployment rate stands at 47% of which most are youth.

“We are also mindful that this budget comes when most households are going through the worst financial challenges as a result of the downturn in the global and national economy. There is high competition for existing job opportunities because Covid-19 wiped many jobs away. As a consequence, and because of lay-offs and reduced domestic earnings, the collection of revenue by the municipality remains severely challenged,” he said.

Interesting expenditures outlined in the 2023/ 24 budget:

• R13m will be used to upgrade community halls.
• R90m will be used to fix the Flip Human Water Treatment Plant over three years and R25m for Percy Steward Treatment Plant over the next two years.
• R9m will be used to improve access and expand services at the Kagiso Elderly Care.
• Over the next three years R95m will be used to finish the new municipal building.
• R6m is budgeted to refurbish the Mogale City Museum.