Mayor announces multibillion rand budget

The executive mayor of the Tshwane metro, councillor Kgosientso Ramokgopa, announced the metro’s R28 billion budget for the 2014/15 financial year on Monday.

The budget, presented under the theme ‘Financing for Development – Taking Our Capital City Forward’, is the second largest after the Johannesburg metro.

Addressing a gathering at the Sammy Marks council chamber, the mayor said the set ambitious revenue forecasts and capital investment partnerships were necessary to bring to life the commitments he made at his election in 2011.

”Today’s budget policy statement is informed by our developmental programmes in physical infrastructure investment, skills development, safety and security, research and innovation and inclusive growth, among others, aimed at mitigating the effects of high unemployment and inequality levels, aimed at the growth potential of the city” Ramokgopa said.

The 2014/15 Medium-term Revenue and Expenditure Framework (MTRF) presents a spending plan of about R27,6 billion which includes R23,8 billion for the operating budget, R3,8 billion for the capital budget and a surplus of R1 billion from a zero surplus in the 2013/14 financial year.

The metro is aiming at maintaining high credit and liquidity ratings, cushioning against market shocks and creating room for flexibility and agility. Some of the main projects and IDP key focus areas in the 2014/15 financial year include, among others, the following:

· R40 million has been allocated to Health and Social Development towards a new clinic in Soshanguve – the New Gazankulu Clinic, the upgrading and extension of the Zithobeni Clinic and the upgrading of early childhood development centres.

· An amount of R851 million will go to Housing and Human Settlements for water provision, sewerage for a low-cost housing project linked with the acquisition of land and the Winterveldt land management programme.

· R150 million from the Neighbourhood Development Partnership grant will be spent on the following Tsosoloso (renewal) projects:

– Mabopane taxi rank

– Saulsville walkways

– Hammanskraal bridge

– Atteridgeville bridge

– Solomon Mahlangu museum

These medium to long-term projects were initiated by the metro but their implementation will be effected through public-private partnerships and private investments.

The metro will continue to support and facilitate the implementation of the following transformative projects:

Social Infrastructure

• Greening of sports fields – R22,0 million

• Upgrading of Zithobeni sport stadium – R30,0 million and Refilwe stadium – R20,0 million

• Roll-out of bulk 240 l and 1 000 l containers in Region 7 – R5,6 million

• E-initiative supporting the Smart City project – R30 million; and R150 million for the free Wifi roll-out to the rest of the city.

Water Services Infrastructure

• Reservoir extensions – R57,5 million; new bulk infrastructure – R130 million

• Replacement and upgrading: redundant bulk pipeline infrastructure – R59,9 million

• Refurbishment of water networks and backlog eradication – R177,5 million; replacement, upgrade, and construct waste water treatment works facilities – R145,9 million

• Replacement of worn out network pipes – R20,4 million

Electricity and Energy

• Tshwane public lighting programme – R40,0 million

• Electricity for all – R292,0 million

• Roll-out of prepaid electricity meters (indigents) – R25,0 million

Roads and Transport Infrastructure Development

• Doubling of Simon Vermooten – R136,0 million

• Internal roads: northern areas – R399,2 million

• Collector road backlogs: Mamelodi – R17,5 million

• TRT – transport infrastructure – R731,5 million

• Flooding backlogs: networks and drainage canals – R139,1 million

• Mabopane station – R18,0 million

The mayor also reflected on the implications of the metro’s incorporation of the former Metsweding and Kungwini areas and celebrated the recommendation of the Financial and Fiscal Commission that the city should be compensated through a transitional demarcation grant to mitigate the associated costs of the merger.

He said the commission found that the merger had been costly for the metro, considering that the financial and fiscal implications of boundary changes had not been established before the actual decision to change boundaries was pronounced. “Had this been done, it would have enabled all other stakeholders to make informed decisions.” Ramokgopa said.

He stated in conclusion that: “We remain persuaded that the measures spelled out in the framework were necessary and viable; and whether or not they are successful in nudging us closer to our ideal of a better life will be attested to by the dynamics of the cycle ahead of us.”