At the 9th Ordinary Council Sitting for the 2021–2026 term held on 26 June 2024, Mogale City Council approved the budget for the 2024/25 financial year commencing on 1 July.
Delivering the Budget Speech aspects, Finance MMC Doreen David expressed her delight at the ultimate passing of the budget. “Our councillors critiqued the budget, raised concerns on a variety of areas that needed improvements, but they made sure it gets approved so that the city can continue to render services to its communities.”
The approved budget seeks to translate the municipality’s mission into tangible actions and ensure the continued provision of essential services to the community of Mogale City.
Giving a brief budget summary overview, the operating revenue increased by 6% from R4,255,317,660 in the 2023/2024 adjustment budget to R4,527,006,884 in the original budget 2024/205. Operating expenditure increased by 5% from R 3,906,559,863 in the 2023/2024 adjustment budget to R 4,103,136,932 in the 2024/2025 original budget. Meanwhile, the capital expenditure decreased by 21% from R 519,516,468 in the 2023/2024 adjustment budget to R 412,503,075 in the 2024/2025 original budget.
In assessing the budget, the below critical focal points were amongst those that were considered:
- Budget Priorities: Budget allocations are in line with the municipality’s strategic goals and priorities which include economic development, community services, environmental sustainability, and quality of life improvements. This means incremental budgeting is no longer applied instead, targeted essential and re-prioritization and efficiency gains in alignment with municipal priorities has become necessary
- Revenue Sources: Identifying and estimating sources of revenue such as taxes (property taxes, income taxes, etc), grants from higher levels of government, fees such as permits, licenses, and other income sources
- Expenditures: Categorising and allocating funds to various departments and services provided by the municipality focusing on critical departments to ensure effective and efficient service delivery
- Infrastructure Investment: Planning and budgeting for the maintenance, repair, and development of municipal infrastructure including roads, bridges, water, sewage and public buildings
- Debt Service: Managing and planning for repayment of existing debts and consider new debt for capital projects or other municipal needs
- Reserve Funds: Setting aside funds for emergency purposes, future projects, or unexpected expenses such as contingency reserves and capital reserves
- Compliance and Accountability: Ensuring compliance with legal and regulatory requirements, as well as accountability for how taxpayer funds are used
- Long-Term Financial Planning: Considering long-term financial sustainability, forecasting revenue and expenditure trends, as well as planning for future challenges and opportunities facing the municipality
By successfully accomplishing this budget plan, the city expects to significantly bolster its liquidity status and ensure the continued delivery of quality services to the residents of Mogale City.