The City of Johannesburg’s combined operational and capital budget has grown to a record R47.1 billion, after exceeding R40 billion last year, finance MMC Geoffrey Makhubo said on Tuesday.<\/p>\n
“The City is financially in the best shape yet,” Makhubo said.<\/p>\n
“The city has a healthy cash balance, annual surpluses, our investments in strategic infrastructure and the reports from the auditor general,” he said.<\/p>\n
“We built up substantial cash reserves through more stringent cash management. Despite monthly expenditure of R2.2 billion, the city has monthly cash balance in excess of R5 billion.”<\/p>\n
The city’s capital expenditure over the next three years would equal R32 billion, with R10.4 billion budgeted for the 2014\/15 financial year.<\/p>\n
It was also on track to invest R100 billion in infrastructure over a 10-year period, with the infrastructure capital budget having grown from an initial R4.5 billion in the 2012\/13 financial year to R10 billion this coming financial year.<\/p>\n
“This is a key tool for improved service delivery which gives the city the ability to change the urban environment for the better through infrastructural development,” he said.<\/p>\n
IT and broadband<\/strong><\/p>\n Group Corporate Shared Service\u2019s operating budget amounted to R834 million for 2014\/15 and the three year capital budget allocation for Group Corporate and Shared Services is R1.6 billion for various projects.<\/p>\n “Key focus areas include ICT \u2013 infrastructure renewal and optimisation, software upgrades, broadband migration city-wide, and procurement of new fleet vehicles,” Makhubo said.<\/p>\n Electricity<\/strong><\/p>\n Regarding rates and tariffs, electricity would increase by an average of 7.05%, which would provide the city with revenue of R13.6 billion.<\/p>\n “Registered indigents will continue to receive free electricity, free water, and free sanitation in terms of Johannesburg’s extended social package,” Makhubo said.<\/p>\n “The tariffs for waste removal services will increase by six percent for domestic households and eight percent for businesses and commercial customers.”<\/p>\n The proposed increases would generate sufficient revenue to ensure Pikitup could sustain its current service levels and extend services to new areas and housing developments.<\/p>\n Property<\/strong><\/p>\n Properties valued at less than R200,000 and households registered for the extended social package would continue to receive free refuse removal services.<\/p>\n The property rates tariff would increase by five percent, while water and sewerage tariff increases would be around 8.9%.<\/p>\n Looking ahead, Makhubo pointed to “a smart City where there will be universal access to telecommunications at affordable prices as well as widespread ability to utilise these services”.<\/p>\n Reporting with Sapa<\/em><\/p>\n Free WiFi for Joburg<\/strong><\/a><\/p>\n Joburg: Africa\u2019s best city for youth<\/strong><\/a><\/p>\nMore on the city of Joburg<\/h3>\n