2012-05-30: Record Joburg budget benefits service delivery and infrastructure provision
ON 24 May 2012, the City of Johannesburg Council approved combined Budget of R37.6 billion of R33.4 billion for operational expenditure in the 2012-13
financial year and R4.2 billion for capital projects.
The budget is designed to ensure continuous service delivery to the people of Johannesburg and the extension of these services across the city to benefit
all communities. It also provides the basis for our future plans to create much needed jobs through our infrastructure programmes which will increase over
the next ten years.
"In the State of the City address earlier this year, the Executive Mayor, Councillor Mpho Parks Tau, announced that the City, in partnership with the
private sector, intends to invest R100 billion over the next 10 years in infrastructure to unlock economic opportunities, expand investment and create
jobs", said Councillor Geoffrey Makhubo, Member of the Mayoral Committee for Finance.
This year's R 4.2 billion allocation for capital expenditure will, in the medium term, grow to R7.3 billion and cumulatively reach R100 billion in ten
years. This expenditure includes capital grants, loans, own investment and public private partnerships. Over time we would like to increase the proportion
of capital budget to total budget.
The City's immediate attention is to continue to rebuild its cash reserves in order to improve its capacity to invest. In the medium term budget framework,
the City is committed to increasing its investment in economic infrastructure in collaboration with the Presidential Infrastructure Commission and private
sector.
Highlight of some major initiatives contained in the 2012/13 Budget 2012 are as follows:
City Power receives R12.6 billion for its operating expenditure and an additional R953 million for capital projects. This dominant focus is to improve the
quality of supply and quality of service. We will be investing in infrastructure to reduce technical and non-technical losses in electricity as well as new
service connections and public lighting. There will also be a strong emphasis on demand side management and the installation of smart and pre-paid meters as
well as solar heating rollout.
Johannesburg Water is allocated R5.8 billion on the operational budget and a capital budget of R728 million. The level of water losses remains our biggest
concern. We will implement programmes to repair and maintain our water network to reduce water losses. Other areas to be addressed are to provide households
in informal settlements access to basic sanitation and to improve response times to service failures.
Pikitup receives R1.33 billion and R54 million, respectively. This will go towards actions against illegal dumping, the regular collection of refuse, street
and Inner City cleaning and informal settlements cleaning. Our initiatives to promote recycling and separation at source will be implemented in the
following areas - Orange Farm, Zondi, Ivory Park, Diepsloot and Waterval. We started a process towards alternative waste treatment technology and
continuation of the harvesting of landfilled gas to energy project.
Johannesburg Roads Agency is allocated R274 million for capital expenditure and R548 million for its operational budget. The money will go mainly towards
preventing roads from deteriorating further. Other projects will include the maintenance of roads, bridges and storm water systems.
Joshco, the Johannesburg Social Housing Company gets a combined total of R234 million to continue its work on projects such as the City Deep mixed housing
development; Fleurhof rental new housing project, the staff hostel redevelopments in Anthea, Selby and Orlando Ekhaya and the Dobsonville social housing
project.
On the operational side the Johannesburg Metropolitan Police Department (JMPD) receives R1, 64 billion for traffic enforcement, crime prevention and bylaw
enforcement. The Budget provides for the deployment of 10 JMPD officers per ward that was announced in the State of the City Address. This will assist in
strengthening by-law enforcement throughout the City. We will also focus our energies on community-based policing in partnership with other law enforcement
agencies and the private sector.
R677 million goes to Health and Social Development. We are aware of the fact that a large percentage of our citizens remain poverty stricken. Included in
this budget is an amount of R7 million to start a Food Resilience Programme which will ensure access to food for the poor and the vulnerable; improve food
production capacity of households and poorly resourced farmers and improve nutrition security of our citizens and healthy living life style.
R401.6 million, operational and R529.7 on capital expenditure are allocated for Housing. The bulk of the capital allocation is from the Urban Settlement
Development Grant and the focus will be on road and storm water management; infrastructure renewal and new bulk infrastructure in various areas such as
Fleurhof Mixed Development, Kanana Park, Kliptown, Lakeside, and the Lehae and Lufhereng Mixed Developments.
Community Development receives an operational budget of R780 million. The focus will be support to schools and lifelong learning; sports and recreation
development programmes including the Soweto Theatre which was launched on Friday, 25th May 2012; youth and women skills development and learn to swim
programmes. The City will also upgrade community facilities such as recreation centres, swimming pool, libraries and sports grounds. The City has also made
provision for its commitment towards hosting AFCON matches in January 2013.
A capital budget of R992.6 million and an operational budget of R855.8 million are allocated to the department of Transport. This will mainly go towards
extending the Rea Vaya BRT system to new areas. This project will be a catalyst for improved and integrated public transport as well as contributing to the
fundamental pillars of Johannesburg's competitiveness as a City. We will also introduce programmes to promote behavioural change towards road safety and
public transport usage and complete streets and streets alive.
The remainder of the Budget is divided between the other City departments and entities.
For more information contact:
Nkhensani Makhobela
Tel: 011 407 6431
Cel: 082 461 7075
