By Akani Nkuna
Mogale City mayor Lucky Sele has welcomed the Council’s approval of the 2024/25 Adjustment Budget, including the debt relief granted to the municipality by the National Treasury.
Sele described these developments as key steps toward financial stability and sustained service delivery.
“This debt relief, combined with the approved budget adjustment, marks a significant milestone in our efforts to strengthen the municipality’s financial position while enhancing essential services for Mogale City residents,” said Sele.
“The debt relief, which represents one-third of the municipality’s debt to Eskom, will be pivotal in easing the financial pressure on the municipality. This relief is a vital step towards ensuring that the municipality can continue to provide quality services to its residents without being hindered by overwhelming debt burdens.”
The 2024/25 mid-year adjustment budget is based on a projected revenue increase of R5 billion, with operating expenditure of R4.5 billion and capital spending of R446 million. This results in a surplus of R37 million and R448 million over the MTREF period.
Notably, the surplus reflects a R23.2 million improvement compared to the original budget, highlighting strengthened financial performance.
“The 2024/2025 Adjustment Budget is focused on addressing the most pressing service delivery needs within the municipality. It prioritizes critical infrastructure maintenance and aims to directly improve the daily lives of residents,” said Sele.
“The adjusted cash flow budget indicates that the municipality will close its books with a surplus of R147 Million for the financial year. Furthermore, the adopted adjustment budget in its current form is funded by R43 million.”
Financially, the municipality has made notable strides. In the 2023/24 financial year, it recorded a positive operating surplus of R584 million which Sele says that it has been effectively managed to settle both current and outstanding creditor obligations.
Furthermore, the municipality’s creditor aging analysis reflects significant progress, with outstanding debt decreasing from R682 million in July 2024 to R275 million in December 2024—a substantial reduction of R407 million.
The 2024/25 Adjustment Budget reflects a 28.8% increase, prioritizing key service delivery needs.
Allocations include R4.7 million for grass cutting, R8.8 million for pothole repairs, and R33 million for chemical toilets.
Additionally, R6 million is set aside for landfill site management, R12 million for refuse removal, R5.8 million for streetlight maintenance, and R12 million for electrical network maintenance to address vandalism and ensure a stable power supply.
In addition to these initiatives, several key projects will be implemented during the current adjusted financial year.
These include R17.7 million for Flip Human, R8 million for water pipeline replacement, and R12 million for refurbishing Lusaka 2 & 3 sewer pump stations.
Other allocations include R5.5 million for the Muldersdrift Reservoir, R14 million for the Ethembalethu sewer pump station upgrade, and R5 million for the Kagiso water supply tower.
Meanwhile, the Council acknowledged that customers were mistakenly billed for electricity in February 2025.
The Council further said corrections are in progress, with 80% resolved and residents with pending corrections will not face disconnections or interest charges, as any applicable credit control measures will be reversed for these accounts.
“Mogale City recognizes the importance of adhering to the conditions outlined by National Treasury, particularly the requirement to maintain Eskom’s current account while continuing repayment arrangements,” Sele said.
“Our administration remains dedicated to ensuring financial discipline and upholding governance principles in accordance with the Municipal Finance Management Act and the Municipal Systems Act.”
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