Tshwane Update Edition 3 July.Cdr

TSHWANEYour paper CITYCITY OF OF TSHW TSHWANEANE 18-29 July 2011 "we"we are the same" UPDATE MENLYN MAINE, TSHWANE TEAMS TSHWANE SE POORT TOT NEW PROJECT TO ANNOUNCE MAJOR DIE TOEKOMS P3 REDUCE ENERGY USE P9 CHANGES P12 TSHWANE AND WASHINGTON DC Receive your paper SIGN AN AGREEMENT ON regularly FRIENDSHIP AND COOPERATION This is the third edition of Tshwane Update. Our aim is to publish the paper on a bi-weekly basis so as to Staff Reporter give you, our residents, information about developments in Tshwane. The Executive Mayor of Tshwane, Councillor of their schools and universities. Kgosientso Ramokgopa, and the Mayor of While we have tried not to deviate Washington DC, Mayor Vincent Gray, signed a On the side of economic development and from this aim we have come across five-year friendship and cooperation tourism, the two cities will promote some challenges that have caused agreement on behalf of the two cities. collaboration and joint ventures among their delays in publication. However, we The agreement will focus on five strategic areas businesses, chambers of commerce and are working on these and promise of cooperation: entrepreneurs with a special focus on the that from now on we will publish the growth and development of business paper bi-weekly. - Cultural and educational exchange investment, trade and tourism. - Economic development and tourism The major challenge for us is to - Public health The two cities will also promote the exchange adjust our work schedules and set - Government and technology of social development, health policies and best aside sufficient time in between our - Public safety practices to strengthen the capacity and other responsibilities to produce a effectiveness of prevention and treatment professional paper. In my opinion Councillor Ramokgopa, the MMC for City programmes, such as those for HIV/AIDS and we have done remarkably well so Planning and Economic Development, related diseases. far. Councillor Subesh Pillay, and senior officials visited the United States of America at the Officials will also exchange ideas in the areas We have now worked out a beginning of July as part of a business and of government operations, e-governance, production schedule that will enable trade mission to Washington DC, New York smart city projects and green urban us to produce the paper on a and San Francisco. development. Expertise and best practices in regular basis. May we take this the areas of public safety and the reduction of opportunity to thank you for your The aim of the trip was to strengthen relations urban crime will also be shared. support and to promise you a paper with the cities of Washington, New York and that will keep on improving. San Francisco and to invite, encourage and We also wish to invite all our secure investment readers to send us contributions in opportunities, and the form of articles and letters to the establish linkages with editor. Contributions must be about businesses in the positive developments in Tshwane United States. or positive comments and suggestions to assist the City of The two cities are to Tshwane to improve its service promote the delivery. These improvements must development of benefit all residents. Partisan and programmes in the negative articles and letters will areas of culture, unfortunately not be published. education and arts so as to share Send your contributions, with photos experiences and learn if possible, to from each other. They [email protected]. will also promote educational exchange EDITOR between the administrators, teachers and students The Executive Mayor of Tshwane, Councillor Kgosientso Ramokgopa, and the Mayor of Washington D.C., Mayor Vincent Gray, signing a five-year agreement on friendship and collaboration between the two cities on 7 July. Celebrating 10 years of service delivery www.tshwane.gov.za City of Tshwane I Official (page) 2 18-29 July 2011 TSHWANE UPDATE News City celebrates audit report results Phalane Motale The City of Tshwane views the achievement some of the issues highlighted in the report. received clean audits in 2004/05 (financially of an unqualified audit report as a milestone "We are working closely with the executive unqualified with no other matters of and, better still, a building block because it mayor (Kgosientso Ramokgopa) on issues concern), there were 4 in 2008/09, and 7 in takes the City closer to its goal of building of improved governance and a clean audit," 2009/10. the newly-extended metro into a world-class Nombembe was quoted in the press. "The Nothing stops the City of Tshwane from African megacity. executive mayor is hands-on and is improving on the 2009/10 audit outcomes in The Auditor-General Terence Nombembe interested in getting a clean audit." the next reporting period. recently named the City of Tshwane as a Nombembe said improved municipal audit metropolitan municipality that has improved What is an unqualified audit? outcomes require a partnership that should its financial management over the previous be led by mayors. "Mayors should pioneer financial years. An unqualified audit verifies that the financial and accounting and lead this joint venture." transactions of a municipality were dealt with in a manner that is The Consolidated General Report on the consistent with sound financial practices and legislation. In July 2009 the Minister for Cooperative Local Government Audit Outcomes released It provides comfort to investors that sound management Governance and Traditional Affairs recently showed that Tshwane obtained an principles are being applied and that there are controls in place introduced Operation Clean Audit 2014. In to safeguard the public's money. audit report that was financially unqualified, terms of this project, all 283 municipalities but with findings. The combination of a strong credit rating and an unqualified must have achieved clean audits on their audit opinion (both are issued by independent external bodies) financial statements by 2014. reduces the risk to investors when a municipality borrows According to Nombembe, one of the money. municipalities that has since been Municipalities have come a long way in the past few years in moving towards a clean Investors may not want to invest in organisations with low credit incorporated into the City of Tshwane – the ratings and adverse audit opinions, as the risk of not getting Metsweding District Municipality – has audit. While 61 municipalities received their investment back is too high. A higher risk is always received clean audits for two years in a row. financially unqualified audit opinions in accompanied with a high interest rate (if funds are invested at 2004/05, this figure increased to 94 in all). Nombembe added that his office was 2007/08, 117 in 2008/09 and 127 in A positive credit rating and audit outcome will therefore assist a working closely with the City to sort out 2009/10. Whereas only 2 municipalities municipality to attract loan funding at a more competitive interest, which means lower rates. RESIDENTS TO BENEFIT DESPITE TARIFF HIKES Phalane Motale Most residents in the expanded Tshwane stand to benefit from the A number of factors have new municipal tariffs which became effective on 1 July. This is been taken into account despite the recent price increases announced by the electricity and when calculating the water utilities, Eskom and Rand Water. property rates, but the Eskom has increased the price of bulk electricity supplied to principal factor that had to municipalities by 26,7 percent on 1 April. With a guideline tariff be taken into account was increase of 20,38 percent proposed by the National Energy the Municipal Cost Index, Regulator of South Africa (Nersa), the City decided on an increase which calculates the inputs of 19,8 percent for residential households. This is 0,58 percent less and raw material costs than proposed by Nersa. relevant to municipalities. The index was also Meanwhile, Rand Water announced a tariff increase of 12,9 percent considered when tariff for bulk water supplied, but the City has decided to increase the increases were calculated. water tariffs by 9 percent only, which is 3,9 percent less than the The current index stands Rand Water tariff increase. at 15,9 percent. Interestingly, the incorporation of the Nokeng and Kungwini Although property rates Regions into Tshwane initially meant that the Municipality was faced increased by 8 percent on with the challenge of having three different tariff structures for average, households in property rates, electricity, refuse removal, water and sanitation. Kungwini and Nokeng are However, in line with the Municipality's objective of ensuring the now enjoying a rebate of financial sustainability of the expanded City and improved R50 000. This includes compliance with the Municipal Property Rates Act of 2004, R15 000 impermissible Executive Mayor Cllr Kgosientso Ramokgopa announced the value plus a further R35 000 granted by the City of Tshwane. introduction of a single tariff system as from 1 July. Furthermore, registered indigent households will not be liable for The new tariffs will see households in Tshwane pay an average property rate charges. Therefore the poorer sections of increase of 13,8 percent for municipal services, while those in communities in previously disadvantaged areas in Nokeng and Kungwini (Bronkhorstspruit and surrounding areas) will pay an Kungwini will receive the same benefits as those in the other average 1,2 percent, and Nokeng (Rayton and Cullinan areas) an regions of Tshwane. Indigent households in Kungwini and Nokeng average 17,8 percent more on their municipal accounts. will also not pay for services, just as those in the rest of Tshwane. 3 TSHWANE UPDATE 18-29 July 2011 News School holiday programme a success The 2011 winter school holidays came and went, but unlike last year when the FIFA World Cup™ and its associated attractions kept everyone busy, children in Nokeng (Region 5) were offered a wide range of activities to keep them safe and entertained this time round.

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