Speech by the City’s Executive Mayor, Patricia de Lille,
on the tabling of draft budget
Mr Speaker,
In terms of the Municipal Finance Management Act (MFMA), a local
government must submit a concept or draft budget to the public for its
consideration and comment before a final budget can be presented to the
Council.
This is an important legislative requirement.
It ensures that, across all departments, our intentions for how we spend
all of our money in terms of both operating expenditure (opex) and
capital expenditure (capex), are available for public scrutiny and
correction where required.
It is during this phase of the budget process that all those claiming that
we do not spend the majority of our budget on the poorer areas of Cape
Town should make their public submissions based on proof.
In my years as Mayor, not once has any substantive proof to counter our
evidence of pro-poor spending ever been offered.
The meaningful corrections that are offered must be in terms of ensuring
that our budget aligns with our public mandate, as expressed in our
corporate strategies and our Integrated Development Plan (IDP).
In compiling this draft budget, we have followed the process prescribed
by legislation and adhered to the guidelines stipulated by the National
Treasury.
Furthermore, we have enhanced these processes by adding in additional
layers of strategy and internal oversight.
These layers began with a framework that was sent to all departments
clarifying their strategic objectives, programmes and projects as well as
transversal goals.
In addition, we laid out the restrictive criteria that departments would
need to apply in their budget submissions.
These came in a series of questions and interrogations to ensure strategic
alignment, maximum value-add and efficiencies.
As such, we asked directorates:
1. What is needed to execute the City’s strategy in your directorate
2. What resources are needed; what prioritisations are required
3. What exclusions need to be made; what expenditure repurposing is
required
4. What revenue can be sourced
5. What efficiencies can be achieved
6. What additional revenues can be sourced
7. What business improvement processes can be undertaken
8. An indication of where staff vacancies have been cut
9. Indications of plans to adhere to service delivery standards with
reduced resources
10. And capital spending programmes in the MTREF period, with
indications of how capital spending is occurring sustainably with
expenditure on asset maintenance as per National Treasury guidelines.
After a rigorous process of budget submissions and debate, we have
arrived at the draft budget submitted to Council to release for public
participation.
In total, the proposed opex budget is approximately R28 billion and the
proposed capex budget is just over R6 billion.
In terms of capex, we have split our costs between new and renewed
capital projects by R3,5 billion in the case of the new assets and projects
and R2,5 billion in the case of existing assets and projects – achieving a
desirable split between new investments and looking after existing assets,
a split that is consistent with the prescriptions of the National Treasury.
Major proposed capex funding within the opportunity city include funding
for: broadband infrastructure; the Khayelitsha/Mitchells Plain Mesh
Network; the Bellville Transfer Station; IRT acquisitions; and a new
electricity depot.
Propositions for the caring city include: land acquisition; Council rental
stock upgrades; the second phase of the Garden Cities project; and the
Macassar and Gugulethu housing projects.
Proposed projects for the inclusive city include: funds for the Mayoral
redress programme; the new regional library in Kuyasa, Khayelitsha; and
the Strand Pavilion Precinct Upgrade.
The safe city sees additional capital allocated to the Safety and Security
Directorate to fulfil law enforcement requirements.
Within the opex budget, an increase would go to the City Manager to
implement a common project management methodology across the City
to improve the technical capacity of our service delivery.
Compliance and Auxiliary Services has a proposed increase to cater for
urban regeneration and sufficiently fund our municipal court system.
Finance and Economic, Environmental and Spatial Planning would also
receive additional funds to help with numerous data clean-up operations
that will assist us in understanding property distributions across the city
and further enhance our revenue-generating capacity.
We further propose additional funds to Human Settlements to finance the
Anti-Land Invasion Unit and to Safety and Security for neighbourhood
watch and neighbourhood safety officers as well as the reservist
programme.
Further funds are proposed for the Expanded Public Works Programme
(EPWP) and for Solid Waste Management to implement a weekend refuse
removal programme in informal settlements.
In addition, the repairs and maintenance budget of Transport for Cape
Town would also be increased to address necessary road repairs across
the city.
And perhaps, most significantly, a substantial increase to Social
Development and Early Childhood Development to increase the capacity
of trained staff; Early Childhood Development roll-out and the
refurbishment of existing facilities.
In total, for our service delivery budget, our proposed budget would see
67% of our spending be targeted towards the poor in the city – a
powerful testament to this government’s commitment to reconciliation
through substantive redress measures.
And in terms of our proposed rates and service charge increases, we have
kept our increases as low as possible and as close to the Consumer Price
Index of 5,9 as we can in order to ensure that, in difficult times, we do
not pass on additional burdens to the consumer.
As such, we propose the following charges:
1.
2.
3.
4.
Rates: 6%
Electricity: 7,6%
Water and Sanitation: 8%
Solid Waste: 5,9%
This is a reduction in the increases from last year, which were as follows:
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

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A rates increase of 6,10%
A sanitation increase of 9,53%
A water increase of 9,53%
An electricity increase of 7,86%
This draft budget proposed today is fully balanced and fully funded.
In conclusion, the document before us today is fully in line with our
strategic vision for the city.
It adequately funds our five pillars and ensures that we commit ourselves
to redress and reconciliation while taking the lead in driving economic and
social development in the metro region.
In the interests of meeting the needs of the people of Cape Town, I
propose it for public participation.
Thank you, baie dankie, enkosi.