With more than R26-billion in the pot to be divided up between City entities, the mayor has once again tabled a record budget.

Mayor Amos Masondo arrives with MMC for community development, Nandi Mayathula-Khoza

THE City of Johannesburg has announced a historic budget of R26-billion for the 2008-09 year, more than 13 percent higher than in the last financial year.

The capital budget is R5,2-billion and the operating budget is about R21-billion.

Tabling the budget on Wednesday, 21 May, Executive Mayor Amos Masondo said it reflected both the size and scope of the activities of democratic local governance in Johannesburg.

"It [the budget] leaves no person in our city untouched. What is presented here and what the council will vote on will have a direct and measurable impact on the lives of our people."

However, the mayor also pointed out that it was being delivered in a period of tight financial conditions and global uncertainties.

"It is also presented against the backdrop of developing changes within the City’s revenue landscape, such as the introduction of the new Municipal Property Rates Act and the new Valuation Roll, the proposed electricity increases from Eskom and the rising rate of inflation."

Operating budget
Of the total operating budget, Masondo said community development would receive R553,4-million; about R115-million would go to transportation.

Other allocations include:

• Housing receives R685-million;
• Metro police receives R1,2-billion;
• Emergency services receives R472-million;
• Health receives R357-million; and
• Development planning and urban management receives a share of R463-million.

The municipal entities account for about 57,5 percent of the total budget. Of the operating budget, the lion’s share goes to City Power, which gets R5-billion. The balance is split between the other entities:

• Joburg Water receives R3,7-billion;
• Johannesburg Roads Agency receives R496-million;
• Pikitup receives R1,1-billion;
• Metrobus receives R402-million; and
• Johannesburg Fresh Produce Market receives R159-million.

Capital budget
From the capital budget, the allocations are:

• City Power receives approximately R1-billion;
• Joburg Water receives R872-million;
• Pikitup receives R29-million;
• Johannesburg Roads Agency receives R242-million;
• City Parks receives R42-million;
• Inner city regeneration receives R200-million; and<
• Johannesburg Development Agency receives R92-million for projects such as the Greater Ellis Park precinct (R10-million), Greater Newtown (R12-million), Nasrec (R15-million) and the development of the Randburg CBD (R12-million).

In addition, R26-million has been allocated to sport and community facilities in marginalised areas and Soweto.

Key areas have been identified for priority development during the 2008-09 financial year. Masondo said the City would upgrade informal settlements in line with the national target of formalising all informal settlements in the country by 2014.

"The current reality in Johannesburg is that there are 182 informal settlements accommodating 180 000 households in informal structures. Residents of informal settlements live in a state of legal insecurity and have little incentive to invest their own resources in the physical environment. As a result, homes in informal settlements are often unsafe, unhealthy and generally provide inadequate living environments."

Masondo said the City's 2008-09 housing budget of R721-million was an increase of 130 percent.

"This allocation includes R371-million for housing top-structures, R90-million for land acquisition and R80-million towards mixed-income housing projects, where our goal is to also leverage funds from the private sector."

Approximately 3 500 rental units will be developed in 2008-09, and a further 4 000 in the following financial year. The Johannesburg Social Housing Company's capital budget amounts to R239,8-million, of which R37-million will be allocated for hostel conversion and medium-density housing.

"Our projections are that approximately 1 147 rental units, 1 851 special units, 468 hostel redevelopment units, 228 inner city residential units and 404 public stock refurbishment units will be developed during 2008-09," Masondo said.

Alexandra Renewal Project
The Alexandra Renewal Project, recently extended to 2010, receives R40-million and R70-million goes to engineering services at Cosmo City. Inner city generation will receive R2-billion over the next five years. In the current budget, R250-million has been allocated to the project and an additional R200-million for capital expenditure.

With 25 months until the 2010 FIFA World Cup, an amount of R789,1-million has been provided for 2010 projects. Some R580-million will go towards the completion of Soccer City, R130-million for the work done at Ellis Park Stadium and R82-million for the greening of the Klipspruit and its wetland system.

A project closely related to the World Cup is the International Broadcast Centre (IBC), which will be located in the Nasrec precinct. Masondo said the City would invest R120-million in hosting the IBC; R1-billion has been set aside for the redevelopment of the Nasrec area.

The IBC would leave a lasting legacy in Johannesburg. "We believe that the IBC will contribute to the telecommunication and broadcasting infrastructure, which will improve the lives of all our people," he said.

Transport
"The budget for transportation will increase by 31,7 percent in the coming year. Of the R981-million allocated, R332-million will go towards Intelligent Transit Systems and R419-million to take the Rea Vaya Bus Rapid Transit system forward."

A significant portion of the budget has been earmarked for crime prevention and the strengthening of public safety measures. Crime prevention gets R576-million and R494-million goes towards traffic safety enforcement.

The City's HIV and Aids support programmes would receive approximately R45-million in the 2008-09 financial year, according to Masondo.

"Once again the budget reflects our commitment to provide quality health services to our communities in collaboration with the other spheres of government."

He added that there was a number of HIV and Aids programmes and outreach campaigns in 12 areas across the City. The City would focus on extended prevention campaigns and comprehensive and integrated treatment programmes that would specifically target City employees.

In conclusion, Masondo said the 2008-09 budget was more than mere balance sheet of revenue versus expenditure.

"This budget comes at the tail end of a lengthy process of participation. This consultation was held with communities and stakeholders across the length and breath of our city. We sought to reach out to every region and locality."

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