Joburg’s people-centred budget – to the tune of R73.3 billion – is designed to resuscitate quality service delivery in the aftermath of the devastation of the Covid-19 pandemic on City coffers.
The Member of the Mayoral Committee (MMC) for Finance, Cllr Jolidee Matongo says the approved 2021/22 budget is anchored on the pleas of residents about affordability, the increased need for accelerated service delivery and the reconfiguration of the City’s spatial design.
MMC Matongo adds that the budget is also tailored to boost socio-economic development in Johannesburg.
“A difficult balancing act of our budget has enabled the City to take into account pleas from residents for minimal tariff increases in the finalisation of the proposed rates and tariffs for 2021/22 amidst the Covid-19 economic impact on the livelihoods of residents,” he explains.
The City has kept the new annual tariff increases as minimal as possible, with property rates meant to rise by only 2%, which is less than the current property rate charge of 4%.
Water and sanitation go up by 6.8%, which is equal to the pass-through cost from Rand Water. The City will continue providing all residents with free 6kl of water each month.
Refuse collection increases by 4.3%, which is lower than the increase of 5.2% in the current financial year. Electricity tariffs go up by 14.59%, a projection below the 15.09% that Nersa has granted to Eskom.
Cllr Matongo says tariff increases come after the City has already rolled out several relief measures to assist ratepayers struggling to pay their municipal accounts while also extending the benefit period for residents who are on the Expanded Social Package since the hard lockdown.
“Relief measures also include the expansion of pensioner rebates and most recently the improved Debt Rehabilitation Programme to cover more beneficiaries, including churches, non-profit organisations and small businesses,” he says.
MMC Matongo notes that the budget is also designed to support the Government of Local Unity’s rebuilding agenda to transform Johannesburg into a thriving City post the Covid-19 pandemic – through accelerated service delivery, and also the reintroduction of co-production of municipal services with residents.
“This is a people-centred budget, which is committed to several infrastructure projects across the City in a bid to revive our local economy and change the face of our communities,” he says, adding that the budget will operationalise community service facilities – including shelters for people, particularly children, affected by gender-based violence and address homelessness.
The 2021/2022 budget comprises an operational expenditure of R65.1 billion, with a capital expenditure of R8.2 billion and a three-year capital budget of R25.5 billion to enable the municipality to focus on strategic priority infrastructure turnkey projects in poor areas, including Orange Farm, Ivory Park and Kliptown.
“These projects are central to increasing the City’s economic nodes in line with our GDS 2040 strategy on socio-economic and spatial transformation,” says Matongo.
The MMC describes the budget as a balancing act of the interests of the people of Johannesburg, the City’s ability to continue delivering quality basic services and the institution’s financial sustainability.
“The City is faced with multiple challenges of youth unemployment and spatial design concerns that continue to block access to opportunities for underprivileged communities. We have had to prioritise investment in poor areas that also include Eldorado Park, Alexandra, as well as Zandspruit and Meriting,” MMC Matongo explains.
The full Budget Speech, which outlines the state of the City’s finances and the 2021/2022 budgetary allocations can be accessed on www.joburg.org.za.