The Member of the Mayoral Committee for Finance, Councillor Funzela Ngobeni, delivered the budget speech for the City of Johannesburg on Wednesday, 22 May.
“This budget has its genesis in the halls and streets of this great city of ours” is how Ngobeni started the budget speech for the 2019/ 20 financial year.
According to Ngobeni, the budget presented is the tool to advance Diphetogo (Real Change), and will enable a tactical, progressive, and sustained advance towards real redress.
The city has delivered, among other things, 4 000 site and serviced stands, 6 261 mixed income housing units and electrified 2 600 households in informal settlements.
“We opened opportunity centres in Roodepoort, Diepsloot and Orange Farm – and are on the verge of launching a new opportunity seekers database which will connect job-seeking residents to work opportunities,” said Ngobeni.
The economic outlook has deteriorated during the 2018/ 19 financial year.
Ngobeni said,”Government is faced with increasing funding pressures from state-owned companies which require government financial support.”
Gross Domestic Product (GDP) growth in 2019 is expected to reach 1,5 per cent, improving moderately to 2,1 per cent in 2021.
Over 900 000 of our residents are unemployed and the national economic growth outlook remains depressed.
The proposed tariff increase for Johannesburg Water remains at 9,9 per cent, with a 5,5 per cent increase on property rates and 7 per cent for refuse removal.
The budget for 2019/ 20 financial year is R64,5 billion.
“The three-year medium-term capital budget of the Sustainable Cluster amounts to approximately R11,4 billion. The operating allocation for 2019/ 20 financial year is R33 billion. 160 000 people are on the housing list and our housing backlog is conservatively estimated at 300 000 units,” Ngobeni said.
The 2019/ 20 budget was allocated as follows:
• A budget of R3,5 billion and an operating budget of R1,1 billion is allocated to the Housing Department.
• R150 million is allocated for the purpose of developing temporary and emergency accommodation within the City.
• R391 million of the R1,9 billion USDG allocation from National Government is ring-fenced as a new grant, known as the Informal Settlements Upgrading Grant.
• The Environment and Infrastructure Department has been allocated a three-year capital budget of R440 million. R220 million of this allocation relates to the implementation of Waste Treatment Technologies.
• City Power has been allocated a three-year capital budget of R2,9 billion.
• R150 million has been made available for the rollout of new public lighting.
• Johannesburg Water is allocated an operating budget of R11,5 billion for the 2019/20 financial year, with a three-year capital budget of R3,2 billion.
• Pikitup has been allocated a three-year capital budget of R427 million.
• The Johannesburg Social Housing Company has been allocated a capital budget of R874 million over the next three years.
• The Human and Social Development Cluster budget amounts to approximately R1,1 billion.
• Operating expenditure has been allocated R9,5 billion for the 2019/ 20 financial year.
• The Community Development Department will receive a capital allocation of R321 million which will be utilised for the construction of multipurpose centres in Lehae, Matholesville, Kaalfontein and Drieziek.
• The Health Department has been allocated a multi-year capital budget of R217 million.
• Public Safety has been allocated a three-year capital budget of R277 million and an operating budget of R5,5 billion for the 2019/ 20 financial year.
• R70 million has been made available for establishing the Public Safety Integrated Intelligence Operations Centre.
• R80 million is set aside for renovations to the Central Fire station as well as R30 million
for fire and rescue equipment.
• R65 million has been allocated to Joburg City Theatres to continue with the upgrades to stage equipment for the City to continue earning revenues from local and international productions.
• The capital budget for the Economic Growth Cluster amounts to approximately R10,1 billion.
• The Economic Development Department has a capital budget allocation of R28 million and an operational allocation of R169 million.
• The Department of Transport receives an operating budget of R1,9 billion for the 2019/ 20 financial year and a three-year capital budget allocation of R3,1 billion.
• Metrobus is allocated an operating budget of R701 million and a three-year capital budget of R287 million.
• Development Planning’s operating budget amounts to R413 million for the 2019/ 20 financial year and a three-year capital budget of R828 million.
• Joburg Market received an operating budget of R362 million.
• The Johannesburg Property Company (JPC) received an operating budget of R674 million for the 2019/ 20 financial year, and a three-year capital budget of R136 million.
• Over R1,1 billion will also be made available for the resurfacing and rehabilitation of roads.
• R1 billion has also been set aside for stormwater drainage improvements.
• Group Finance is allocated an operating budget of R5,4 billion for 2019/ 20 and a multi-year capital budget of R5,5 million.
•Group Corporate Shared Services’ operating budget amounts to R534 million for 2019/ 20 and the three-year capital budget allocation is R787 million.
• The Legislature has been allocated a three-year capital budget of R16,5 million.
• The Group Forensic and Investigation Service’s operating expenditure budget for 2019/ 20 is R106 million.
• The Ombudsman’s operating expenditure budget is R34 million.
• The City Manager’s operating expenditure budget is pegged at R1,3 billion.
• R100 million has been set aside for the recruitment of a “Visible Service Delivery workforce”.
The Johannesburg Development Agency assists various City Departments with development facilitation and will continue to implement the following projects, among others:
• Balfour Park Transit Precinct Development (Louis Botha Corridor)
• Bana Kekeleni Hospice New Clinic in Alexandra
• Diepsloot Development Renewal Precinct Redevelopment
• Inner City Eastern Gateway
• Roodepoort CBD regeneration Renewal Precinct Redevelopment
• Marlboro South Light Industrial Business Hub Skills Development Centre
