Budget Report from his Worship,
the Honourable Mr. Patrick Mabilo,
the Executive Mayor of the Sol Plaatje Municipal Council
on 28 May 2020
tabled to the council at the Council Chambers
Central Theme: 2020/2021 Budget Speech
“Don’t ask what the City can do for me?
Rather ask, “what can I do for my City?”
“Let’s work together to make
Sol Plaatje Municipality Great Again”
Executive Mayor - Budget Speech - Tabled to Council on 28- 0 5 - 2020
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Honourable Speaker: Ms Ingrid Koopman; The Central Theme of this 2020/2021 Budget Speech is “Don’t ask what the City can do for me? Rather ask, “what can I do for my City? & Let’s Work
Together to make Sol Plaatje Municipality Great Again”
Honourable Chief Whip of the Council of the Sol Plaatje Municipality;
Esteemed Members of the Executive Mayor’s Mayoral Committee & Chairpersons of Oversight Committees;
Honourable Councillors;
Representative of all Political Parties in Council;
The Acting Municipal Manager & Acting CFO;
Executive Directors and Senior Managers;
All Municipal Officials;
The Leadership of Organized Business; Organized Labour & Civil Society Organizations;
My Fellow Residents of the Sol Plaatje Municipality
Members of the Media
Distinguished Guest
Ladies and Gentlemen
Good Morning,
Executive Mayor - Budget Speech - Tabled to Council on 28- 0 5 - 2020
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Honourable Speaker,
Allow me to open my address here today with the words of our distinguished Premier, Dr. Zamani Saul, when he delivered his State of the Province Address (SOPA-2020) and Vision 2040 for the province.
As he quoted from our founding father of the nation utata Nelson Mandela when he opened the first State of the Nation Address of a Democratic South Africa. And I quote: “We must, regardless of the accumulated effect of our historical burdens, seize the time to define for ourselves what we want to make of our shared destiny.”
“Don’t ask what the City can do for me?
Rather ask, “what can I do for my City?”
“Let’s work together to make
Sol Plaatje Municipality Great Again”
Today, is my singular honour and privilege to table my Second Annual Budget and our 16th Annual Budget of the new democratic era, which saw the promulgation and implementation of a new financial regulatory regime as per the MFMA (Act 56 of 2003).
Executive Mayor - Budget Speech - Tabled to Council on 28- 0 5 - 2020
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This is our first Annual Budget Report in conjunction with the first Budget Statement of the sixth Provincial Administration and Provincial Legislature.
On this particular budget day, Honourable Members of this House, we as a city are under severe pressure to curb, contain and minimise the spread of the deadly Corona Virus (COVID-19). We are truly blessed as a City, a Province, a Country and a Continent to be the least affected by this life-threating strain of the Coronavirus, for now.
However, my fellow citizens we must remain vigilant in fighting this scourge as the World Health Organization (WHO) that Africa predicts it will be the hardest hit before we as humanity eventually win this war against this deadly and undefinable strain of the Coronavirus called COVID-19
“Don’t ask what the City can do for me?
Rather ask, “what can I do for my City?”
“Let’s work together to make
Sol Plaatje Municipality Great Again”
Executive Mayor - Budget Speech - Tabled to Council on 28- 0 5 - 2020
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Honourable Speaker, what does this mean for us as a Capital City and the economic hub of the province? It means that we as a council are bestowed with the responsibility to learn lessons from other provinces and countries which have successfully contained t he spread of the virus.
Also, Madam Speaker, it means we must then learn from those countries and cities across the globe which have been hit the hardest and most severe by this virus.
We are indeed in a better position to heed the call from the Highest Office in the land as well as the World Health Organization to be vigilant and put in place all necessary and relevant measures to curb the effect of this virus.
My fellow Councillors, it is our responsibility and accountability to ensure that each and every one of our citizens are educated (correctly & factually) about this virus and what basic measure to put in place as to prevent contracting and spreading this virus. It is also incumbent upon us as a collective and not as a divided house, along party lines to render all the necessary support our staff, our clients, our residents and every visitor to city requires to stay safe and healthy, while we battle this enemy.
“Don’t ask what the City can do for me?
Rather ask, “what can I do for my City?”
“Let’s work together to make
Sol Plaatje Municipality Great Again” Executive Mayor - Budget Speech - Tabled to Council on 28- 0 5 - 2020
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Madam Speaker and Honourable Chief Whip allow me the opportunity to first thank my Mayoral Committee, my fellow Councillors as well as all political parties for their contribution and wavering support during this difficult and trying times while we under this hard lockdown. Furthermore, I would like to express my gratitude to our provincial government under the leadership of the Premier, Dr Saul for ensuring that the people of this province and particularly the citizens of our municipality remained safe and still remains safe while we all adhere to all the regulations set forth by the National Corona-Virus Command Council and its District Command Council in our own municipality.
Madam Speaker allow me also the opportunity to thank my Mayoral Committee and my fellow Council Members for their contribution to the realization of the multi-year Capital- and Operating budget for 2020/2021.
Also, Madam Speaker, I would like to give a very big thank you to the management team under the leadership of Acting Municipal Manager, Mr Mabija. We must never forget that we are partners when it comes to the management of the municipality and municipal funds for the benefit of the community and each of you plays a very important task and role in making this a reality.
Thanks to this year's Finance, Budget & Treasury teams and especially to our Acting CFO, for continuously keeping us abreast
Executive Mayor - Budget Speech - Tabled to Council on 28- 0 5 - 2020
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on the financial status of the municipality and ensuring that we remain liquid and honour our monthly obligations.
Also, a big thanks to the employees of Sol Plaatje Municipality for ensuring that basic service delivery continues through these tumultuous times and ensuring that quality basic service delivery is going to be our focus and our priority.
Solutions to our challenges:
The adjustment budget, adopted by council on 25th February 2020, as well as this budget reflects the serious challenges confronting the municipality such as a low revenue base, unfunded budgets, more than R50 Million budget deficit, serious cash flow constraints, which literally make us to conduct business on a day-to-day basis. Through all these challenges and obstacles facing us during these tumultuous financial crises, our communities expect changes to their living conditions.
“Don’t ask what the City can do for me?
Rather ask, “what can I do for my City?”
“Let’s work together to make
Sol Plaatje Municipality Great Again”
Executive Mayor - Budget Speech - Tabled to Council on 28- 0 5 - 2020
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Resources of the municipality must be utilised for the express purpose intended.
We are confronted with the following challenges in the municipal area, high unemployment (specifically the youth), poverty, inequality and the sever lack of economic growth and investment.
Revenue advancement must be strengthened and implemented as a matter of priority. We must rebuild the municipality and make it great again. We must forge ahead permitting neither adversity nor doubt to divert our attention. Let us put All our Shoulders to the Wheel.
“Don’t ask what the City can do for me?
Rather ask, “what can I do for my City?”
“Let’s work together to make
Sol Plaatje Municipality Great Again”
Executive Mayor - Budget Speech - Tabled to Council on 28- 0 5 - 2020
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We must focus on our key priorities that is the provision of quality and affordable services. The executive management team of the municipality must ensure that they execute they core mandate.
I must spell it out:
The city as well as all the wards must be kept clean as a priority and on a continuous basis, cleanliness is close to Godliness.
All sewer and water leaks must be fixed within a reasonable turnaround time; complaints must be updated accordingly
Electricity outages must be attended to timeously and speedily; pre-warning and advance notice must be provided to an affected resident.
On potholes, there’s is a concern that Kimberley has become leading city with potholes. As the Mayor and the team, we declare a war on potholes. Priority must be given to fixing of potholes
“Don’t ask what the City can do for me?
Rather ask, “what can I do for my City?”
“Let’s work together to make
Sol Plaatje Municipality Great Again”
Executive Mayor - Budget Speech - Tabled to Council on 28- 0 5 - 2020
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Madam Speaker, it is in this spirit, which I as the Executive Mayor and the Members of the Mayoral Committee, have embarked on an extensive campaign of the Executive Meets the People, the Khawuleza! Call To Action .
“Don’t ask what the City can do for me?
Rather ask, “what can I do for my City?”
“Let’s work together to make
Sol Plaatje Municipality Great Again”
As I speak to you here and now, a cry for quality service delivery has descended upon our city during the 108 Anniversary Celebrations of the ANC visit of the President and has captured our volunteers, young people, old people, people everywhere in the city.
As I table this Annual Budget here today, I wish to demonstrate that indeed, we are ready and committed to deliver and roll-out services to our people, because as stewards and custodians of this Budget, we are fully aware that is what our people expects from us…and nothing less. We are proudly saying as a council…it’s time to hurry up with the mandate to improve the lives of our people…. for the better. Therefore, my fellow councillors the time has come for us to move from Thuma Mina! to Khawuleza! Call To Action
Executive Mayor - Budget Speech - Tabled to Council on 28- 0 5 - 2020
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When this council and administration came into office on the 24 November 2018, I presented my vision, which was and still is grounded on the principles of being Pro Poor and Pro Local. This Vision present us with the perfect roadmap for united action, precisely, for it carries the support of the people out there…communities support this new administration and it is up to us not to disappoint them.
Leaders from all walks of life should be ready to rise above factional interests and sectional biased and with great majority pull together as one unified team to take our city forward and reclaim its status as the City of Firsts.
This challenge I put to all sections of our society; business, labour, public representatives, political leaders, activists, veterans and every citizen in each and every household in the Sol Plaatje Municipality.
The Sol Plaatje Municipality is centred on the people who live and work here.
“Don’t ask what the City can do for me?
Rather ask, “what can I do for my City?”
“Let’s work together to make
Sol Plaatje Municipality Great Again”
Executive Mayor - Budget Speech - Tabled to Council on 28- 0 5 - 2020
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We are a municipality hard at work to provide services of good quality and correct the mistakes of the past both distant as well as recent. With the recent results of the by-elections it is indicative that our government is a functional, trusted and reliable movement. I would like to extend my best wishes and heartfelt congratulations to all councillors who have been chosen as the people’s representatives for restoring confidence and to continuing to provide our people with quality services by our ANC led government.
As a municipality we remain committed to the transformation the social and economic statuses of our communities. We are fully committed to ensure that economic opportunities are made available to first-and-foremost our local businesses; the youth, woman and people with disabilities.
“Don’t ask what the City can do for me?
Rather ask, “what can I do for my City?”
“Let’s work together to make
Sol Plaatje Municipality Great Again”
Executive Mayor - Budget Speech - Tabled to Council on 28- 0 5 - 2020
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Honourable Speaker we have been granted a new opportunity of renewal, restoration and hope. The time has come to walk towards the new dawn. In restoring the municipality as a trustworthy and sustainable institution we are working towards taking it to greater heights.
Ladies and gentlemen, we have been confronted by the tough economic challenges as experienced in all corners of the country. The revenue collection has been on a downward trajectory with some residents, businesses, government departments and state- owned enterprises not paying their municipal debts.
With that we will strengthen the internal financial standings of the institution and enhance financial compliance and heighten performance management.
Cash flow system must be strengthened in order to coincide with budget expenditure to ensure revenue and expenditure are in sync.
Madam Speaker, we have to be frank and candid in acknowledging the number of challenges faced by the municipality, off which the Cash Flow, is our number one priority. The anticipated income streams are not forthcoming, and the budget has taken a downward turn compelling us to take extraordinary budgetary measures to ensure the municipality remains functional and stable.
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We are still faced with some of our ongoing challenges, namely the sewer spills, water cuts, and potholes and refuse collection and electricity cuts. Our teams have been working diligently on addressing these challenges, however chief amongst these are the vandalism of our assets, primarily our electrical infrastructure.
At this juncture, Honourable Speaker, I would like to express my gratitude for the unwavering commitment by executive, senior and line managers as well as our workers who are on the ground for the continued dedication and diligence in ensuring quality services reach all residents
We will be continuing with our massive clean -up campaign, in the Sol Plaatje Municipality that has been running since my inception in the Office. We have to ensure through a clean city campaign we draw much needed investment, expertise, innovation and development into Kimberley and its surrounding areas.
In order for the municipality to regain its financial standing, I as the Executive Mayor will ensure that fruitless expenditure and mismanagement are a thing of the past. I work endlessly to ensure that funds are accounted for to improve services to our people.
“Don’t ask what the City can do for me?
Rather ask, “what can I do for my City?”
“Let’s work together to make
Sol Plaatje Municipality Great Again”
Executive Mayor - Budget Speech - Tabled to Council on 28- 0 5 - 2020
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Madam Speaker, at this point allow me to share some of the key points of this year’s budget.
Operational Revenue:
The budget for operational revenue is R 2 212 561(Two billion two hundred and twelve million five hundred and sixty-one thousand) and expenditure is R 2 193 028(two billion one hundred and ninety- three million and twenty-eight thousand).
Operational Expenditure:
The net effect on operational expenditure budget was a decrease of R45 914 585 million.
Capital Expenditure:
Capital budget is R140 056 (One hundred and forty million and 56 thousand rand) and R434,403 (Four hundred and thirty-four million and four and three thousand rand) over the MTREF.
The makeup of the capital program for 2020/21 is rightfully dominated by infrastructure projects consisting of roads, storm water, water, sanitation and electricity projects. Projects listed under infrastructure constitutes 88% of the allocated budget.
“Don’t ask what the City can do for me?
Rather ask, “what can I do for my City?”
“Let’s work together to make
Sol Plaatje Municipality Great Again” Executive Mayor - Budget Speech - Tabled to Council on 28- 0 5 - 2020
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The flagship project is the Lerato Park sewer upgrade project with a budget of R26.4m funded through the IUDG (Integrated Urban Development Grant) followed by roads program in Galeshewe continues with a budget of R13.5m. The Carters Glen Sewer Pump station received R20m from WSIG (Water Services Infrastructure Grant), the sink toilets R14.4m also funded from WSIG and part internal funding. The Lerato Park electrification of 675 homes received funding to the tune of R12.1m from the INEP (Integrated National Electricity Program) grant.
The Galeshewe storm water project will continue with funds secured from the Neighbourhood Development Partnership grant. Total budget is R20m and R64m over the MTREF (Medium Term Revenue and Expenditure Framework).
This project includes the finalization of the Kagisho Dam, which will form part of our revised IDP Programme for this budget year. The commencement date for this project is planned for the 01 July 2020 and all the relevant and necessary designs have been concluded.
“Don’t ask what the City can do for me?
Rather ask, “what can I do for my City?”
“Let’s work together to make
Sol Plaatje Municipality Great Again”
Executive Mayor - Budget Speech - Tabled to Council on 28- 0 5 - 2020
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The operational revenue budget of the municipality showed significant variances, pertaining to the Sale of Electricity with an initial projected loss of R116 million. These circumstances necessitated the adjustment of both the operational revenue, operational and capital expenditure budgets.
The capital budget, where additional funding has been received had to be considered as well as the outcomes of rollover approved by National Treasury. Some grants, such as the NDPG was also adjusted downwards and these changes had to be factored into both the adjustment and annual budgets.
Due to budgetary constraints and limited cash available, projects funded from internally generated funds (CRR) had to be reduced as well. Projects carried over from 2017/18 and which were at an advanced stage were provided for in the budget.
Debt management remains the biggest challenge with the average outstanding debt over 90 days averaging at 90% of the total outstanding debt.
This has been compounded by a lower collection rate of 73% for the year ended 30 June 2018. There has been improvement in this regard with the average collection rate hovering at 81% as at the end of December 2018.
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Service delivery
The slow progress of infrastructure projects was the result of disputes with contractors over the submission and payment of invoices. In some instances, the parts of the invoices were paid while projects were stopped due to non-payment.
Managers and supervisors must manage their subordinates and ensure that they enhance the performance of their respective departments. Managers and supervisors will be held accountable at all times.
Delays in the supply chain management (SCM) processes hamper the expenditure of infrastructure grants and further delaying the implementation of planned infrastructure projects. Most of the infrastructure projects in the implementation stage are underfunded due to the municipal financial constraints.
“Don’t ask what the City can do for me?
Rather ask, “what can I do for my City?”
“Let’s work together to make
Sol Plaatje Municipality Great Again”
Executive Mayor - Budget Speech - Tabled to Council on 28- 0 5 - 2020
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The Fourth Industrial Revolution (4IR) Remain a Massive Opportunity for the Youth.
Post COVID-19 Initiatives to be embarked upon by Sol Plaatje Municipality, is to give the Youth the Opportunities for Skills Development, Entrepreneurship & Job Creation.
Strategic pathways for the 4IR as a tool for improving outcomes in service delivery for Sol Plaatje Municipality. A 4IR Steering Framework establishment of 4IR structures at Sol Plaatje Municipality. Traditional ways of doing things are going to come to an end.
The 4IR Nerve Centre, establishes the 4IR Innovation Technology Hub. The 4IR Skills for the future work. Data science skills programme for youth. Re-skilling workshops for Local Government Corps and public campaigns to enable capability acquisition and awareness.
Job creation and entrepreneurship, commercialization of 4IR technologies in line with the province’s comparative advantages and resources to enable SMME access international markets.
Adopting 4IR pathways for Sol Plaatje Municipality to eradicate inequality and poverty, through Innovation, Creativity, A New Thinking and Fresh Approach to recover lost ground.
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The use of 4IR for decision-making is key. The technology will help us in our key focus mandates.
A.- use of such technology to detect water leaks early.
B – use of electricity smart metering technology to detect tampering and meter by-pass.
These are just some of the benefits of 4IR that our municipality will embark on in our new budget.
The above and more will be guided by development of a coherent 4IR strategy designed for our unique conditions that will utilize the opportunities of 4Ir to reduce poverty and inequality among our people.
“Don’t ask what the City can do for me?
Rather ask, “what can I do for my City?”
“Let’s work together to make
Sol Plaatje Municipality Great Again”
Executive Mayor - Budget Speech - Tabled to Council on 28- 0 5 - 2020
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POST CORONAVIRUS INITIATIVES
On Tuesday, 21 April, President Cyril Ramaphosa had this to say about South Africa’s fight against the Covid-19 pandemic. We are resolved not merely to the return of our economy to where it was before the Covid-19 pandemic. However, to forge a new economy in a new global reality, building on the cooperation that is being forged among all social partners during this crisis.
As a municipality, we are tasked with the responsibility to devise a clear coherent and comprehensive post Covid-10 plan for our municipality.
Amongst others, is to vigorously pursue the following outstanding initiatives to strengthen Partnerships with Strategic Organizations:
Kimberley Rehabilitation and Development, Changing the Face of Kimberley
Partnership with the JLD Institute for an economic investment
Partnership with Vaal University of Technology (VUT) for the youth skills development and job opportunities
Multimillion Solar farm opportunity
Partnership with the Groskop Lift in Mpumalanga to invest in the development of the Big Hole Precinct.
Strategic engagement with respective Ministers and Deputy Ministers and other State-Owned Enterprises
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Create incentives for manufacturing-based entities and other business opportunities that will create jobs around the city of Kimberley.
We will leverage the Sol Plaatje University and other institutions of higher learning to benefit of the city, such research and development.
Infrastructure development is paramount to our city’s growth therefore we are supporting the Premier when he said we need to transform the city into a “construction site” where cranes are all around us.
We must follow-up on these initiatives as a matter of priority on all possible opportunities for the city.
“Don’t ask what the City can do for me?
Rather ask, “what can I do for my City?”
“Let’s work together to make
Sol Plaatje Municipality Great Again”
Executive Mayor - Budget Speech - Tabled to Council on 28- 0 5 - 2020
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Honourable Speaker allow me to remind us to what the Honourable Premier of the Northern Cape said in both his 2019 & 2020 SOPA, about his Vision of a MODERN, GROWING AND SUCCESSFUL province (city of Kimberley). I quote: “A Modern, Growing and Successful Province. Such a Province will care for the vulnerable and make life worth living for them, such a province will be at the cutting-edge of the Fourth Industrial Revolution and prioritizes quality education and training. Such a province will strive to improve the health profile of its residents. It will be a province whose youth have reasonable opportunities and are allowed to dream. Furthermore, Madam Speaker, ladies and gentlemen, a Modern Growing and Successful Province is one where our people, especially woman and children, can freely enjoy their streets without fear of being molested or abused. In such a province, people who are differently abled or disabled are embraced and equitably given opportunities. This will be a province with a strong and caring government that actively fights corruption and laziness. Such a province will build partnership between the different sectors of society for shared growth and development. The elected leaders of this Modern, Growing and Successful Province are hard-working, they pay attention to detail, are incorruptible and shun self-indulgence such as red carpets, blue-lights, security upgrades, State houses, etc. Such a province gives hope to the hopeless in a very practical way”
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Madam Speaker, as I close the Mayor’s Budget Speech, I beseech all of us to internalise this vision of the Premier for the province and make it our Vision for the City and the Municipality, where the people are truly our number one priority. I would like quote from the Bible, The King James Version of the Book of Proverbs 29:18 says,
“Where there is no vision, the people perish: but they that keepeth the law, joyful is he.”
Without a long-term plan—without a vision—people (we) are doomed to wander aimlessly.
Sol Plaatje Municipality as a matter of priority must finalise its 2040 vision, inclusive of all stakeholder inputs.
Therefore, I urge all of us to roll-up our sleeves and make Sol Plaatje Municipality great again!
“Don’t ask what the City can do for me?
Rather ask, “what can I do for my City?”
“Let’s work together to make
Sol Plaatje Municipality Great Again”
I thank you!
Executive Mayor - Budget Speech - Tabled to Council on 28- 0 5 - 2020
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