Pretoria - Tshwane remains at the upper end of South African municipalities with respect to the health of its credit rating, says executive mayor of the City of Tshwane, Kgosientso Ramokgopa.
Delivering the State of the City Address on Thursday, Ramokgopa said the financial position of the City continues to strengthen.
“The City's solvency and liquidity ratios are the major indicators of this improvement. The City holds total assets that can cover its total liabilities by more than two times.
“It should be noted that whilst the City was downgraded, as a natural consequence of the country’s downgrade, Tshwane remains at the upper end of South African municipalities with respect to the health of its credit rating,” he said.
According to the executive mayor, the City’s target is to remain above the break-even point with respect to the financial health measurements; adding that this is accordingly reflected in the liquidity position of the City.
He said this position is indicative of an improvement from the previous financial years.
“The cash position of the City has also continued to strengthen. This is demonstrated by the phenomenal growth of the City’s year-end cash closing balances, which has risen from R69 million in 2009 to a closing balance of R650 million in 2012.
“This growth is as a direct consequence of stringent and targeted financial prudence and austerity measures designed to build cash reserves and sustainability of the City,” he said.
Ramokgopa said at the end of March, the cash and cash equivalents amounted to over R900 million, excluding the short-term facilities of over R1.64 billion that have been negotiated with financial institutions.
He said the City continued to meet its monthly financial obligations.
“This total cash balance of over R900 million is further indicative of sustained capital spending by the City to ensure that valuable infrastructure is rolled out in all areas of the City, which will enable us to continue to deliver quality services as well as to improve upon service delivery,” he said.
The city hosts about 154 foreign missions, making Tshwane home to the second highest number of diplomatic missions in the world, only second to Washington D.C.
According to Ramokgopa, there are a number of game-changing interventions that have been identified during this term to position Tshwane as an African Capital City of Excellence.
The construction of the new face of the capital city, known as the Tshwane House - New Municipal Headquarters, is actively underway following the conclusion of a partnership agreement with the TselaTshweu Consortium.
He said this will enable greater ease of access to services for citizens and will further instil a culture of increased organisational efficiency, thereby allowing citizens to reap the benefits of more efficient and effective service delivery. - SAnews.gov.za
