The City of Johannesburg's executive mayor Amos Masondo recently unveiled a record-breaking budget of R25-billion for the 2007-08 financial year.
He said the City needed to accelerate growth, making sure it was "balanced and shared", while at the same time allowing the "proactive absorption of the poor".
"We need to acknowledge the fact that certain parts of our city are growing at levels beyond 30 percent. We need to identify which growth areas should be nurtured and supported."
"Johannesburg accounts for over 16,9 percent of South Africa's gross domestic product and employs 12 percent of the national work force. In this regard, the City needs to grow at a much higher pace if the country is to achieve a 6 percent growth rate; we have set ourselves a 9 percent economic growth rate."
Opportunities
Masondo said it was important to seize the investment opportunities created by the 2010 Fifa World Cup™, the Gautrain and the Bus Rapid Transit system.
"We also need to look at investing in freight and logistics. There has been an acknowledgement of the centrality of [City Deep] and we need to encourage its expansion. If this is the main inland port in Johannesburg and Gauteng, we need to give this project special attention."
In addition, the City would pay special attention to the R1-billion Orlando Ekhaya project, ensuring that there was leverage of private sector resources.
Kliptown developments, the Alexandra Renewal Project and the inner city rejuvenation were essential instruments of development, Masondo said, adding that the National Treasury Neighbourhood Development Grant had allocated R2,2-million in technical assistance funding to complete outstanding planning work in Kliptown and R30-million for project implementation.
"During his State of the Province address, Premier Mbhazima Shilowa announced the extension of the Alexandra Renewal Project to 2011. The City will be investing R88-million in the [initiative] in the upcoming financial year. One of the key projects for the year is land acquisition in Linbro Park to continue the work that is currently being undertaken in Alexandra township."
The budget also considered the commitments made by the City at the Inner City Summit, on 5 May. Masondo said the City would commit R2-billion in capital allocation to inner city rejuvenation over the next five years. In the next financial year there would be a R300-million capital allocation and a R100-million operational allocation for improvements to service delivery in the area.
Safety and security
For sustainable development to take place, Johannesburg had to ensure a safe and secure environment. It had developed the City Safety Strategy and worked closely with the South African Police Service.
"In this budget we will allocate R38,1-million during the 2007-08 financial year, R219-million during the 2008-09 financial year and R276,892-million during the 2009-10 financial year to increase the number of metropolitan police officers and to support their training and deployment."
Provision would also be made for one additional vehicle for every three officers. The Johannesburg metropolitan police department would train and employ 840 officers from 1 July and 1 160 officers from 2008. By the end of 2010 there would be 4 000 officers.
In addition, the City would invest R50-million to support specific sectors, including its broadband network; the SMME Fund, a R500-million enabling fund; and the Soweto Empowerment Zone.
Looking at positive developments already in the bag, Masondo said Joburg had recorded sound financial achievements, with rating agencies upgrading its long-term rating. In its credit rating report in April, Fitch Rating upgraded the City's long-term credit rating from A to A+ and confirmed its short-term credit rating at F1."
Facts and figures
Joburg's population is estimated to have grown from 3 225 791 in 2001 to 3 790 324 in 2006 - an average increase of 3,5 percent a year. Specifically, the number of people with an education level of grade 12 and higher was rising rapidly. And the budget has taken into account this rapid population increase.
It is made up of a capital budget of R4,7-billion, up R1,25-billion or 35 percent over the previous year, and an operating budget of R21-billion, R2,9-billion more than in 2006-07.
"This significant rise is indicative of the broader economic growth and development that is taking place within Johannesburg and within the broader province of Gauteng … In terms of revenue, the City intends to raise a total of R21,1-billion for 2007-08 and R22,3-billion for the 2008-09 financial years."
Masondo also proposed a 2 percent surcharge be levied on business customers on the tariffs for trading services, namely water, electricity and refuse removal, in terms of the Constitution and the Municipal Systems Act.
"The proposed surcharge will be an additional 2 percent of the already determined municipal base tariff … Our estimates are that the surcharge will add an additional R67-million to the City's revenue."
Source: joburg.org.za
Read more
