DA Proposes alternatives to the Tshwane Budget

DA PROPOSES ALTERNATIVES TO THE TSHWANE BUDGET

A municipal budget is very important as it is the only way we can rectify the problems in our Metro. According to Universal Access to Household Basic Services report commissioned by the Department of Cooperative Governance and Traditional Affairs, residents of the Tshwane Metro have the worse access to basic services of all Metro’s in South Africa. The alternatives to the proposed budget suggested below are essential to ensure that we use our funds effectively to address this situation.

Job Creation Through Economic Growth

The DA believes that the municipality should use levers in its budget to stimulate economic growth in order to create jobs. We also believe that investment into infrastructure should drive such economic growth. The following priority areas will therefore enjoy attention in a budget if the DA wins the election on 18 May 2011.

-                                               Increased expenditure on capital expenditure.

-                                               Increased expenditure on community safety.

-                                               More favourable property rates regime.

-                                               Combat massive municipal increases.

-                                               Improving public transport.

-                                               The introduction of incentives for alternative energy use.

Infrastructure

Capital budgets must reflect consistent efforts to address the backlogs in basic services and the renewal of the infrastructure of the existing services. We have tabled a capital budget approving R3,185,417,740 and rejecting R 2,792,813,826. Thus we have approved 53.28% of the internal requests and we have not even included nearly all of the requests of the community.

It is clear however that this administration does not take crime prevention seriously. Each year a very dismal amount is spent on this departments capital requests. Once again this year only 7% of the capital requests were accepted, the other 93% remains unfunded.

We need new fire stations in Mamelodi, and Winterveld and welcome the budgeted approval for the building of a fire station in Heuweloord. We thus feel an additional R8 million needs to be provided to give effect to this important area of community safety.

A small capital budget should be provided to ward committees to administer for minor upgrades and improvements. This will allow more meaningful inputs form the community and will bring government closer to the people. We propose R1million per ward for this year and depending on effectiveness increasing it in the coming years. These “discretionary” funds can also be used for maintenance in the ward.

The use of a municipal bond to fund the capital budget is a welcome innovation which we are happy to endorse as it falls within our funding model as well. Welcome to the 21^st century. A larger bond should be considered in order to fund and speed up the capital expenditure requests which are so desperately needed. The increased revenue collection will ensure that the interest element on the higher bond can be serviced.

Community Safety

The DA is pleased to see that our suggestion for additional police vehicles which we proposed last year are indeed included in this year’s budget. The money spent on these vehicles together with well trained metro police vehicles may mean the difference to some many residents’ lives. Provided that the vehicles are used for the wards are working with communities to prevent crime. The concern is that only R12 million has been budgeted which will not purchase sufficient vehicles. Almost R80 million in requests remain unaddressed. We would budget for at least an additional R24 million.

The R3million requested for speed enforcement camera’s would go a long way in assisting in stopping drag racers in Voortrekker road and other well known drag racing spots.

Property Rates

I have been hearing a lot about a “new business approach” to local government. However, a business which does not find solutions to problems will fail. Business does not have the luxury of hiding behind old practices and ways of looking at things. Here in this budget we see a prime example of excuses being thrown at rate payers who are faced with massive increases in property rates and massive increases they are. You must thus forgive me when I laugh at the statement our Mayor made on radio about not understanding what the fuss is about high rates increases.

This Metro has not told the residents living in Kungwini and Nokeng Tsa Taemane that:

-                                               Kungwini residents will pay more than 83% in property rates;

-                                               Kungwini business will experience a 34% increase;

-                                               Owners of vacant land in Kungwini face a 124% increase;

-                                               Kungwini’s small holding owners will now be classified as residential and face an increase of more than 424%;

-                                               Nokeng owners of vacant land will have an increase of more than 821%;

-                                               Nokeng owners of the current class of residential rural will have a 170% increase;

-                                               Nokeng properties classified as agriculture but now will be treated as residential with increases of around 429%; and

-                                               Nokeng business properties will experience a 130% increase.

These increases goes against the National Treasury circular 55 directive which requires municipalities to take into account local economic conditions and the affordability of services.

The Municipal Property Rates Act provides a municipality with a lot of discretion when formulating its’ rates policy, which in the end must be equitable to all per section 3(a). If a business approach is applied in this case of the Metsweding municipalities, then the DA would apply section 8(1) of the Municipal Properties Rates Act where it says that in the determination of different categories we may include categories determined according to the a) use of the property, b) permitted use of the property; or c) geographical area in which the property is situated.

Combat Excessive Increases

When you consider these high percentages you almost overlook the 8% increase for existing Tshwane residents. The City of Cape Town managed to keep their increase to under the recommended 6% set by National Treasury. Why can they do it and the Tshwane metro can’t? This means that this metro will have an increase 35.59% higher than Cape Town.

The excessive 8% increase contributes to an increase in local inflation and takes money out of the local economy that could have stimulated higher expenditure in the local economy thus contributing to its growth.

Improving Public Transport

The reduction of the public transport tariffs are welcomed and overdue but the city’s public transport system needs to be extended and the Bus rapid Transport system put back on track.

Alternative Energy Use Measures

We cannot continue to be held ransom by inefficient and poorly managed parastatals.  They need competition and we have to play a role in making sure that they improve their outputs and stop just passing on their inefficiency to us in the form of massive increases.

The DA proposes an additional once off rebate for households who install solar geysers of R1000 per household.  We would include this in our budget over the next five years, with current a contribution of R156 million for households. In the end our electrical supply is an important factor when trying to attract new business to our metro.