On Tuesday, 30 May, Mzi Khumalo, Executive Mayor of the Rand West City Local Municipality (RWCLM) delivered his official 2017/ 18 Medium Term Revenue and Expenditure Budget speech to council and the community.
The total operating revenue has increased to R1,555 billion, with a total revenue growth of R348,2 million in comparison to the 2016/ 17 financial year. The total operating expenditure for the 2017/ 18 financial year has been appropriated at R1,549 billion and translates into a budgeted surplus of R5,8 million. The capital budget of R156,6 million for 2017/18 is 42,1 per cent less than the 2016/17 adjustment budget.
He said, “In order for the RWCLM to continue improving the quality of services provided to its citizens; it needs to generate the required revenue. In these challenging socio-economic times; strong revenue management is fundamental to the financial sustainability of every municipality. However, the reality is that we are faced with massive development backlogs and increasing levels of unemployment and poverty in our communities.”
Revenue generated from rates and services charges forms a significant percentage of the revenue basket for the municipality. This increases to R1,7 billion and R1,23 billion in the respective financial years of the MTREF.
Tariff increases for the new financial year include:
• Property rates:
Registered indigents will pay no property taxes. The property rates of the former Randfontein were lower than those of the former Westonaria. The general increase for former Randfontein properties will be 7 per cent whilst the Westonaria community will decrease by 20,7 per cent. This levels the rates out across the RWCLM.
• Electricity revenue:
A 1,8 per cent increase as approved by the National Energy Regulator of South Africa in the Eskom bulk electricity tariff to municipalities will be effective from 1 July 2017. The increase in the consumer tariff is therefore proposed at 2 proposed from 1 July 2017. All registered indigents will be granted 50kWh of free power per 30-day period. The basic electricity charge for all domestic consumers in Rand West City will be R55.
• Water revenue:
Rand Water has increased its bulk tariff by 10,2 per cent from 1 July 2017, a significant increase to the municipality. An average tariff increase of 12 per cent will therefore be levied on Randfontein consumers while Westonaria consumers will pay an additional 30 per cent for water from 1 July 2017. However, registered indigents will receive 6kl of water per 30-day period free of charge. The basic charge for water to Randfontein consumers will be R32 per month.
• Sanitation revenue:
An average sanitation tariff increase of 6,4 per cent will be levied on all consumers from 1 July 2017, but free sanitation will be supplied to all registered indigents.
• Refuse removal:
Registered indigents will not have to pay for refuse removal. An average 6,4 percent increase in the waste removal tariff will be levied against Rand West consumers. Collections will be done once a week in residential areas. Certain business customers will have more frequent refuse removals.
• Cemetery services:
All residents of the RWCLM will pay the same fees for a grave.
The rates for new graves are:
• Standard 6 feet – weekdays, R901,14; weekends, R1 351,15
• Standard 8 feet – weekdays, R1 240,62; weekends, R1 860,95
• Casket, standard 6 feet – weekdays, R1 240,62; weekends, R1860,95
• Casket 8 feet or oversize – weekdays, R1466,19; weekends, R2 199,29
The fees for reopening graves are:
• Standard 6 feet – weekdays, R563,92; weekends, R902,27
• Standard 8 feet – weekdays, R563,92; weekends, R902,27
• Casket, standard 6 feet – weekdays, R676,70; weekends, R1 015,05
• Casket 8 feet or oversize – weekdays, R789,49; weekends, R1 064.
The mayor then went on to say infrastructure development remains an important focus area for the next five years. “The intention of the municipality is to create an investment-friendly destination, a place where massive infrastructure development will characterise the outlook of the city,” he said.
A number of projects are to be implemented in the 2017/ 18 financial year and beyond, as follows:
• Roads and storm water drainage
Homestead Avenue, Bussing Road, Sutherland Street, Nhlapo Street, Sechoaro Street, Sonneblom Street, Jacob Tshweu Street, Mopedi Street, Ntuli Street and Mphephu Street are to be completed in the 2016/17 financial year.
Khumalo admitted that the roads of the RWCLM are in a bad condition. “In many wards, particularly in Randfontein, we have received the message – loud and clear. We will continue with the project to rehabilitate the roads in Mohlakeng and Toekomsrus, as part of Phase 5 of the project. A sum of R7,83 million has been set aside for the financial year 2017/ 18, a sum of R1,5 million for 2018/ 19 and R5 million for 2019/ 20. Our target is to refurbish Wards 8, 15, 16 and 20 with this money.”
As part of formalising Badirile and creating a new city, a sum of R9,5 million will be spent on road-building for the financial year 2017/ 18. In 2018/ 19, RWCLM will spend R5 million, and a further R5,8 million by 2019/ 20.
“The communities of Mohlakeng Exts 3 and 5 have been vociferous in their demands for decent infrastructure. We have listened and are responding. To this end we have reserved a sum of R7 million for the construction of roads in 2017/ 18, an amount of R10,1 million in 2018/ 19 and R8 million by 2019/20, particularly for Wards 11 and 15. The people of Iraq (nickname of a residential area in Ward 15) will be pleased with this development.
“The people of Mohlakeng Exts 4 and 7 will be pleased to know that we have reserved R5,4 million for the rehabilitation of roads in the 2017/ 18 financial year, R6 million for 2018/ 19 and R8 million for 2019/ 20. R1,3 million has been reserved for the financial year 2017/18 and R5 million in 2018/19 for the roads in Ward 2, Finsbury and the plots, particularly Brandeg Road.
“We will use part of our internal funding to supplement the work of rehabilitating the roads of Finsbury, Ten Acres and Hillside. We contemplate creating a smart city in Zuurbekom as it links Rand West City with Johannesburg, Sedibeng and the North-West, to resemble Rand West City. We have budgeted R6,5 million in 2018/ 19 for the construction of new roads. A further sum amount of R4,1 million has been allocated for 2018/19 and R5,5 million for 2019/20.
“The Westonaria cemetery, especially the roads leading to it and within it will be upgraded to the tune of R5 million in the financial year 2018/ 19.
“In Ward 26, Westonaria, roads in the vicinity of Hannes van Niekerk will be upgraded to the value of R6,8 million in the 2019/ 20 financial year. Road-building to the value of R6,5 million is planned for the financial year 2017/18 and a further amount of R1,8 million for the 2018/19, in Ward 28, Simunye.
“Storm water drains will be constructed in Mohlakeng and Toekomsrus. A sum of R1,5 million has been reserved for 2017/ 18, an amount of R4 million for 2018/ 19 and R5 million for 2019/20.”
• Sewerage network
The mayor said that in general, the sewerage network in Rand West City is in a poor conditon, with many complaints received about sewer problems and blocked drains. A sum of R1,5 million has been reserved for the rehabilitation of the sewer network in Mohlakeng and Toekomsrus in the 2017/18 financial year. A further sum of R6 million will be utilised in the 2018/19 and R10,3 million in the 2019/20 financial year. R5 million has been committed to the upgrading of the sewerage network in Hillshaven in 2018/19 and R15 million 2019/20.
• Prepaid water meters
A sum of R1,5 million has been reserved for 2017/18, an additional R1,5 million for 2018/19 and a further R1,5 million for 2019/20 for the installation of prepaid water meters. A sum of R15 million has been reserved for the next three years for the procurement of both prepaid and conventional water meters. The project will be rolled out to the entire Rand West City.
• Water tower
RWCLM will be continuing with the construction of the Droogheuwel Water Tower. A sum of R11 million has been reserved for the 2017/ 18 financial year and an amount of R53 million reserved for the 2019/ 20 financial year.
The community of Westonaria will benefit from the allocation of R13,4 million for the construction of an alternate water supply pipeline in the financial year 2017/ 18, and R9,6 million in 2018/ 19. A sum of R5 million has been allocated to a similar project in Glenharvie for 2018/ 19 and R10 million for 2019/ 20.
• Electricity
In Mohlakeng Ext 5, a sum of R13,5 million was reserved for the financial year 2016/ 17 but due to the late appointment of the contractor, the amount will be rolled over to 2017/ 18. The first phase of the electrification of the area will consist of bulk infrastructure – the main feeder line and switching station. The second phase will be house connections. The whole project will cost the municipality R60 million.
In Westonaria Borwa, the current service provider has vacated the site, largely due to interference from the community, and the municipality will have to appoint a new service provider. A sum of R9 million has been reserved for the construction of a new bulk substation in the 2017/ 18 financial year. An additional R7 million has been budgeted for the financial year 2018/ 19. A further R40 million will be utilised in 2019/20 to complete the construction of the sub-station.
Khumalo continued, saying, “Our quest to reduce electricity losses is beginning to bear fruit. The R2 million project on the electrification of the Nola, Delmas and Albany hostels in Mohlakeng has been completed. The second phase of electrifying the Madala hostel will start in two weeks, and be completed within two months. This will assist in reducing electricity losses.
“All the informal settlements that require electrification have been identified, and a list has been submitted to Eskom. A project plan between Rand West City Local Municipality and Eskom is being finalised. This process will require patience from the communities as the period for implementation will be 3 to 5 years.
“Lastly, a sum of R1,4 million has been reserved for the installation of high mast lights in Zuurbekom in 2018/ 19 and an additional amount of R2,5 million will be utilised for 2019/ 20.”
• Sport
Mzi said that sports unites the community; therefore the sum of R3,9 million has been reserved for the upgrading of Toekomsrus Stadium during the financial year 2017/18, with a further R5 million for 2018/19 and R10 million for 2019/20.
The Finsbury Sports Complex will be upgraded in 2018/19 to the tune of R2 million. A sum of R5 million has been set aside for the construction of a sports complex in Badarile in the 2017/18 financial year, and a sum of R1 million has been reserved for the upgrading of the Simunye Multi-Purpose Centre.
• Old age homes
R9 million has been reserved for the building of Toekomsrus Old Age Home and R10 million for the construction of the Bekkersdal Old Age facility.
• Municipal call centre
The Ntirhisano Service Delivery Programme has gone a long way towards improving the rate at which service delivery cases are resolved. As a result, R1,5 million has been budgeted for the development of a fully fledged, efficient Call Centre, which will further enhance the level of service delivery in the RWCLM.
• Education
Because education is the most potent weapon we have to defeat poverty, unemployment and inequality, the RWCLM has budgeted R3,1 million for the Mayoral Bursary Education Trust Fund. Private persons and businesses will also be lobbied to contribute to the education of our children.
“In conclusion,” said Mayor Khumalo, “the Rand West City Local Municipality has invested millions in the betterment of our people and that is why we can say that Rand West City is now a better place than it was before 1994. We remain committed to the principles of accountability, transparency, anti-corruption, proper financial management and effective internal control systems.”
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