City of Johannesburg finance head Dada Morero tabled a R80.9bn budget for the 2023/24 financial year on Tuesday and urged the private sector to work with the municipality in solving the socio-economic challenges in SA’s richest and largest metro.
The current government of local unity has inherited a city reeling under financial challenges and neglected infrastructure, and Morero said the budget alone was insufficient to fund its operations and roll out services to its 6-million residents. The municipality needs a minimum of R4.3bn a month, he said.
“We call upon the private sector especially our investor community to help us to leverage this budget so that we can make every cent count and do more,” said Morero, who is the ANC Joburg regional chair.
Of the total budget, R73.3bn is for operational expenditure and R7.6bn for capital expenditure “with a three-year capital budget of R24.4bn”, Morero said. The city’s expenditure has been increasing in recent years, with a budget allocation of R68.1bn for 2020/21, R73.3bn for 2021/22, and R77.3bn for 2022/23.
Johannesburg Water received R15.6bn for operational requirements and R3.1bn for capital expenditure (R2.6bn for water and R514m for sewerage).
“The allocated budget will focus on programmes geared towards water and sewer pipe replacement, upgrades and storage infrastructure, the Wastewater Treatment Works Programme, as well as repairs and maintenance,” Morero said. “Sewer upgrades will be done in many areas including Orange Farm, Lanseria, Soweto, Diepsloot, Ennerdale and Cosmo City.”
City Power was allocated R23.7bn plus a three-year capital budget of R4.3bn for projects including the rollout of rooftop solar panels for poor households, energy efficiency efforts, public lighting, and IT network upgrades.
Morero said property rates, the city’s second-largest source of revenue, will increase by 2%. The electricity tariff will rise 14.97%, while water and sanitation tariffs will increase by 9.3%. The refuse tariff will be 7% higher.
“The projected revenue for electricity increases by 18.5% to R23.5bn. The increase is largely a result of the 14.97% pass through cost from Eskom as well as the strategic drive to reduce total electricity losses to a level of 23% in the new year,” Morero said.
Other highlights:
- Pikitup, the metro’s waste collection agency, was allocated R3.4bn for operations and R179.7m for capital spend;
- The Johannesburg Roads Agency was apportioned a three-year capital budget of R2.5bn and a R1.5bn operating budget;
- Metrobus received R663m for operations and a three-year capital budget of R354m to buy new buses and to refurbish the engines and gearboxes of its current fleet, and to implement a cashless ticketing system;
- The Joburg Market was allocated operating expenditure of R567m and a three-year capital budget of R356m;
- The Johannesburg Tourism Company — R73m operating budget, R11.7m capital budget;
- Johannesburg Property Company — R1.1bn operating budget, R254m capital budget;
- Johannesburg Development Agency — R119m operating budget, R1.3bn capital budget;
- Metropolitan Trading Company — R594m for operations, R21m capital budget;
- Johannesburg City Parks and Zoo — R1.3bn for operations, capital budget of R205m; and
- Joburg Theatres — R263m for operations and R73m to upgrade stage equipment and renovations in all the metro’s three theatres: Roodepoort , Soweto , and Joburg Theatre,
The metro’s portfolios also received allocations, with the human and social development cluster, housing community development, the health, and social development departments, Joburg City Parks and Zoo and Joburg Theatres receiving an operating budget of R10.9bn and a capital budget amounting to about R1.3bn.
Breaking down the cluster into departmental allocations, Morero said the community development department will receive R1.4bn for operations and R238.7m for capital spend.
Morero said the revenue budget for the health department increases by 4.5% to R199.8m mainly “due to an increase in the provincial primary health grant allocation”.
The department’s operating expenditure budget increases by 6.7% to R1.5bn due to an additional allocation of R10m for the rollout of sanitary pads. The health department received R337.6m in capital spend.
The social development department was allocated R359m for operations R307m to assist the homeless, including shelters and rehabilitation facilities, and to help address skills development.
Public safety was allocated R146m for ccapityal projects and R6.1bn for operations; while the economic development department has been allocated an operational budget of R256m and R11.5m for capital spend.
The transport department received a capital budget of R1.6bn to assist in projects including Rea Vaya, while the group finance department was allocated R5.6bn in operational expenditure and R48m for projects over the medium-term.
Morero said his department will focus on strengthening the city’s financial position by focusing on billing and customer service, and improving its profitability and liquidity ratio.
The environment and infrastructure services department received R133.7m for operational expenses and R57m for capital spend.
The human settlements department has been allocated an operational expenditure budget of R1.2bn, and a multiyear capital budget of R5.5bn over the medium-term.
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