Metro's financial crisis is growing
The DA has raised alarms over the city's escalating deficit, which has now grown by a staggering R859-million.
This is according to Jacqui Uys, the party's spokesperson on finance in the metro.
This growing deficit is a stark contrast to the claims of the ANC's deputy mayor, Eugene Modise, who insisted at a city council budget approval meeting that the city's financial woes are over.
Uys, however, argues that the situation is far from resolved and that the current government's handling of finances is putting the city's future at risk.
The most immediate concern, according to Uys, is the rapid growth of the metro's deficit.
'The greatest risk for the city to continue to deliver quality services to residents is financial decline,' Uys explained. 'We are already seeing that the city is struggling to deliver key services like keeping the lights on, repairing potholes, maintaining streetlights, and fixing water leaks.'
She said when the DA was in control of the city, a comprehensive financial recovery plan was adopted, targeting a R3-billion deficit.
By the end of September 2024, the plan showed some success, improving the city's revenue collection by R315-million.
'Unfortunately, this positive momentum appears to have reversed under the current leadership, with the city's collection rate showing a decline of more than R850-million by April this year, a 19% shortfall from the target.
Uys points out that the city's current administration is not prioritising debt collection in the way it should be.
She believes this lack of focus on debt collection has compounded the city's financial troubles.
As of March, Tshwane had outstanding debt amounting to R5.7-billion.
Given these arrears, Uys is sceptical of the current administration's ability to maintain a funded budget for the upcoming 2025/26 financial year as promised by the ruling government.
'If the city is collecting under target, with R5.7-billion in unpaid debtors, they will not balance their books by June 30,' she said.
'This means they will start the new financial year with a deficit, and will not have enough income to cover their expenses.'
The current administration, led by the ANC and its allies, has claimed that the city has a 'funded' budget for the upcoming financial year.
However, Uys is not convinced.
According to her, this notion of a funded budget is based on overly optimistic assumptions about the city's revenue collection.
'The city's ability to balance its books will be severely hampered if it continues to miss its revenue targets,' Uys argued.
'They are essentially trying to tax their way out of financial trouble, but residents are already burdened with high rates. Increasing taxes and introducing new levies, like the newly introduced waste levy, will make it harder for residents to pay their bills, which makes the 93% revenue collection target set for 2025/26 unrealistic.'
While the new waste levy and increased income from a revised property valuation roll are expected to generate more revenue, Uys warned that this approach risks overburdening residents, who are already stretched thin by escalating costs.
In an attempt to address the city's mounting debt, the coalition government has introduced debt relief schemes and incentive programmes.
However, Uys is highly critical of these initiatives.
'The debt relief scheme was structured in a way that benefits the wealthy, who can afford to pay but choose not to,' she said. 'It did not benefit the average household, which may want to pay their bills but is unable to do so due to financial constraints.'
One of the key measures that the DA introduced during its time in power was the Mayoral Charter for financial recovery, adopted in June 2024.
Uys strongly believes that this plan is the key to the metro's financial health and has called on the current administration to implement it.
The Deputy Mayor has been approached for comment, but none was received at the time of publication.
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