The City of Tshwane MMC for Finance, Cllr Jacqui Uys delivered the 2024/25 Budget Speech at Tshwane Council Chamber on Tuesday, 4 June 2024. In formulating the budget, we have ensured that it is based on a financially sound plan that will stabilize the city’s finances while prioritizing service delivery for all, says MMC Uys. This budget will ensure that the needs of our society are met by spending public funds on service delivery issues such as water, electricity and roads projects.
MMC Uys tabled a total budget of R50,6 billion, comprising an operating budget of R48,3 billion and a capital infrastructure investment budget of R2,3 billion for the 2024/25 financial year. The budget is allocated as follows,
Energy and Electricity supply
R20 million was allocated to battery surge protection at substations.
R177 million was allocated towards electricity network maintenance material of which R20 million is ringfenced for rerouting feeder cables to the Rua Vista and Doornpoort supply areas to prevent continuous outages.
A total of R1 million has been dedicated to Gomsand and Claudius substations for repairs.
A further R54 million is allocated to strengthening the 11kv cable network, with focus areas like panels in secondary substations, network upgrades and strengthening of overhead networks.
R179 million was allocated to the upgrading of:
- Kentron substation – R 38 million
- Soshanguve powerline project – R60 million
- Wapadrand substation – R30 million
- Monavoni substation – R31 million
- Mooikloof – R15 million
- Pyramid – R25 million
- Rosslyn – R13 million
- Kwagga infeed station – R5 million
In instances where power outages do occur, the City allocated funds to speed up repair times
- R5 million to trunked radio communications
- R5 million to fault reporting and dispatch
- R25 million to replacing test equipment
To do its job effectively the Energy Task Team has a budget allocation of R 50 million.
Water and sanitation
The department was allocated approximately R536 million for the 2024/25 financial year. Key projects include the following.
49% of the Capital budget towards the prioritisation of the electrical grid and water infrastructure in Tshwane was allocated. This allocation is approximately R1.1 billion of the Capital budget.
Roads
For 2024/25 budget we have allocated:
- Bus Rapid Transit transport infrastructure – R218 million
- Rehabilitation of roads – R30 million
- Internal roads: Northern areas – R20 million
- Services for township developments – R40 million
- Flooding backlogs – R102 million
- Upgrading of road from gravel to tar in Ekangala (Ward 102, 103, 104 and 105) – R22,5 million
Community Safety
R4.5 billion was allocated for the 2024/25 financial year.
R3.416 billion will go towards TMPD to empower law-enforcement officers to fulfill their critical mandate. R3 million of this allocation will be going towards a pilot project to implement smart security services for protection of our assets.
R1.038 billion will go towards ESD to continue rendering lifesaving services and to strengthen the department’s capacity to effectively respond to emergencies.
Providing sustainable housing solutions
For this financial year, the department has a combined operational and capital budget of R1.1 billion.
- A total of R32 million was allocated for Township Establishment during 2024/25 financial year.
- R55 million was allocated for relocations of beneficiaries to permanent stands.
- The City further allocate a total of R57 million for the provision of rudimentary sanitation services to informal settlements.
- R270 million for the provision of rudimentary water services in informal settlements. (Water tankers).
- To restore dignity to residents, R248 503 169 was allocated to the Department of Human Settlements to utilize for the provision of water and sanitation; construction of roads and stormwater, which will be prioritized in the old townships of Mamelodi, Soshanguve, Olievenhoutbosch, Zithobeni, Refilwe, Mabopane, Ga-Rankuwa and Winterveld.
- Following the success of Townlands, the City is now investing in another Social Housing Project in Chantelle with a capital budget allocation of R98.4 million
Supporting the vulnerable
Some of the programmes include the Tshwane Food Bank which supports more than
15 000 families and 24 non-governmental organisations annually. The Food Bank has an allocation of R5,6 million to continue its important work.
The department is also committed to assist in the fight against unemployment, an allocation of R18,5 million towards Expanded Public Works Programme initiatives was made.
Other support services include R2.5 million for Early childhood development centres.
A healthy and vibrant city
It is on this note that the Health Department has been allocated R559 million.
A total of R104 million to go towards Municipal Health Services (MHS) to enforce health and safety compliance and ensure a clean, healthy and safe environment for all.
- R41 million to go towards HIV and AIDS management and prevention programmes (R26 million is from grant funding).
- R 37 million for Pharmaceutical Services to stock medicines.
- R30 million for anti-substance and drug abuse programmes.
- 5 million New Lusaka Clinic in Mamelodi.
- R55m for filling critical vacancies
Keeping our city clean
A total of R2,079 billion was allocated for the 2024/25 financial year.
R567.8 million has been allocated for household refuse removal services.
R111.2 million will go towards clearing illegal dumping and R30.8 million for rental of specialized equipment to assist in this endeavor.
R262,7 million will go to nature conservation and resorts for the maintenance and management of the different reserves and resorts and taking care of the animals.
R2,3 million is earmarked for initiatives aimed at environmental preservation and the removal of invasive plant species.
R660 000 is allocated towards various agricultural initiatives to support agricultural development, promote food security, and enhance the livelihoods of farmers within Tshwane.
Revenue enhancement and Financial Rescue
For the upcoming financial year we’ve made the following allocations to fully capacitate our revenue-collection operations.
- Prepaid electricity meters rollout to address under metering – R 75 million
- Debt collection
- R 52.1 million – meter readers
- R 54.6 million – debt collections
- R 49.5 million – cash collection fees
- Credit control operations R 91.9 million
- Electricity losses (management) R 20 million
- Tendering bills on WhatsApp and USSD R 3 million
- Revenue management war room R 2 million
- New electricity connections R2 million
- Water Conservation R60 million
- Water leak repairs and water losses R50.2 million
R75 million was allocated to upgrade the prepaid TID system in order to be ready for the November 2024 deadline and ensure our prepaid meters continue to function.
Rates and tariffs
We have worked hard to keep rates and tariff increases within our control as low as possible.
Our tariff increases are in line with inflation and are as follows.
- 5.9% water and sanitation
- 5% refuse removal
- 5% property rates
Out of our control is the increase imposed on us by our bulk electricity supplier Eskom, leading to a 12% electricity increase. Furthermore, registered indigent households pay no property rates and continue to benefit from various social relief packages offered by the City. With this budget we have also taken the policy decision to extend our pensioners rebate to be in place for three years without requiring our elderly to apply every year.
In her conclusion, MMC Uys appealed to both political and administrative arms to start working together to restore the hope of Tshwane residents through quality service delivery guided by this budget. The 2024/2024 budget is geared towards stabilizing City finances by rendering core municipal services within the city’s financial limits.