Few surprises are expected in tomorrow's City budget, with the lion's share going to installing, upgrading and maintaining infrastructure, transport and building houses.
ANOTHER record budget is expected to be announced by Executive Mayor Amos Masondo tomorrow when he speaks about the City's priorities for the 2009/2010 financial year.
The budget speech, an annual event, is taking place at 11.30am on 20 May at the Metro Centre's council chambers in Braamfontein; it is open to the public.
With a population growth of almost 2 percent a year, Joburg's infrastructure needs continue to exceed its available resources and there will be few surprises as to where capital spending will go.
The City's focus will continue to be on its service infrastructure upgrades and the 2010 FIFA World Cup™ - now just 387 days away.
Executive mayor, Amos Masondo arrives to deliver the 2008 budget speech
The main beneficiaries will no doubt again be City Power and Joburg Water - necessary allocations as Joburg continues to grapple with the challenges of infrastructure that is more than 50 years old.
Allocations to the 2010 Office will also be substantial to continue with the upgrading and beautifying of the Soccer City precinct and the Klipspruit Greening project in Soweto.
And the City will continue to pump huge amounts of cash into its world-class transport system, the Rea Vaya Bus Rapid Transit (BRT) system, one of Joburg's most ambitious projects and probably the most exciting for residents.
Phase 1A of the BRT is being completed. It will be used during the Confederations Cup, which kicks off in June. Phase 1B, which will be completed in time for the World Cup, is in the public participation and environmental assessment phases.
Other important sectors that are also expected to receive major cash injections are economic development where the focus will remain on the City's broadband project aimed at turning Joburg into a digital or smart city; and the building of more houses.
The biggest housing project the City is undertaking at the moment - in partnership with the provincial government - is at Doornkop, west of Soweto. Referred to as Lufhereng, the project will start with the building of some 25 000 different, mixed-use housing units. It is expected to take about nine years to complete.
Two budget lekgotlas
The City's budgeting process is a lengthy procedure that starts more than six months before final allocations are made. During this time it negotiates with the public and public representatives, and engages continuously with its departments and municipal-owned entities.
Every year the City holds two budget lekgotlas - the first, in the latter part of the previous year, is undertaken to assess the financial and non-financial performance of the City and its entities over the past year.
In January 2008, Joburg and its 14 municipal-owned entities received the first unqualified clean audit report from the auditor-general for the 2006-07 financial year. And it continues to improve its short and long-term Fitch credit ratings.
During this lekgotla the medium-term budget framework with the new projected parameters and spending for the next financial year is also presented to stakeholders for the first time.
This is followed by budget panel meetings in November and December to assess the proposed budgetary requests from the City's 14 entities and departments.
The budget panel has to ensure that budgetary requests are in line with the City's priorities, which include among others to address housing and essential services backlogs; provide affordable and efficient public transport to all its residents; and boost economic development.
The second budget lekgotla is held early in the new year to present the assessments of the budget panel and the draft budget allocations for each department and entity. Entities and departments prepare their draft budgets according to these allocations.
A month later, the draft medium-term budget is tabled before council for approval.
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