Latest news with #MargaretArnolds
IOL News
5 days ago
- Business
- IOL News
Johannesburg's R89. 4 billion budget faces fierce opposition from councillors
City of Johannesburg debated the R89.4 billion budget for the 2025/26 financial year on Thursday at the council chambers in Braamfontein. Image: Nhlanhla Phillips / Independent Newspapers City of Johannesburg opposition councillors on Thursday were critical of several aspects of the R89.4 billion budget for the 2025/26 financial year, saying it ignored the crisis facing the municipality. Finance MMC Margaret Arnolds tabled the budget, which she said was fully funded, and announced plans to get the country's economic hub back on track. DA shadow finance MMC Chris Santana said Johannesburg, South Africa's economic heartbeat, is in crisis, and that systemic inefficiencies, misplaced priorities, and a lack of accountability have eroded its potential. He said infrastructure lies in neglect, leaving the forgotten ratepayers and residents of Soweto, Orange Farm, Lenasia, Roodepoort, Randburg, Sandton, Alexandra, and Diepsloot to bear the burden of the city's failure in delivery. 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Next Stay Close ✕ Santana added that the DA rejected the business-as-usual approach, which places undue strain on residents already grappling with economic hardships. Instead, the DA has proposed a 0% increase in property rates, which reflects stagnant or declining property values due to infrastructure decay, 12.41% for electricity, 13.9% for water, 4.6% for sanitation linked to property rates for residential users, and refuse removal to balance affordability and service delivery. On Wednesday, Arnolds announced a 12.5% increase in electricity, reflecting the approved tariff increase of 12.41%, which is passed through from Eskom. In addition, water and wastewater charges will be up by 11.8%, which Arnolds said was underpinned by an average tariff increase capped at 13.9%, despite Rand Water's 15.3% hike. The municipality is also increasing refuse removal revenue by 6.4% while property rates, which are the city's second-largest revenue stream, increase by 4.6%. Santana said the City of Johannesburg should cap employee-related costs at 4.6% in line with inflation and dissolve non-performing municipal-owned entities' boards to curb wasteful expenditure. He also said councillors' remuneration increases should be reduced to 3%, reflecting fiscal restraint. Other proposals include maintaining debt impairment at 0% increase by enhancing revenue collection strategies, and also capping other losses at 0% by addressing technical and non-technical losses at City Power and Joburg Water. Santana said on the basis of these interventions, the municipality would still end up with a surplus of R3.7bn before capital transfers and taxation. 'We reject the network capacity charge for customers not directly supplied by City Power for reliance on its network. This charge, ranging from R70 to R280.30, excluding value-added tax (VAT), requires clarity and public consultation to ensure fairness,' he said. Arnolds indicated that the controversial prepaid electricity surcharge will remain unchanged at R200 (excluding VAT), which is a deliberate act to protect the poor against rising energy costs. However, ActionSA councillor Lebo Modukanene said the R200 prepaid electricity surcharge is legalised extortion. 'This flat rate is legalised extortion, it is a poverty tax, it punishes pensioners in Moffatview Old Age Home, whose slips show half their grants spent on electricity,' she said.
The South African
5 days ago
- Business
- The South African
Billions allocated to rescue Johannesburg's infrastructure
The City of Johannesburg has committed over R13 billion in multi-year funding to stabilise struggling municipal entities, improve service delivery, and support long-term economic growth. Finance MMC Margaret Arnolds revealed the allocations during the city's 2025/26 budget speech on Wednesday, pledging to move Johannesburg 'from planning to progress.' Johannesburg's municipal entities are under significant strain. Years of underinvestment, ageing infrastructure, and revenue shortfalls have created essential services backlogs. Furthermore, Arnolds said the new budget responds to that challenge, reflecting a 'statement of intent' from the city and its residents. 'This budget was built through public dialogue, regional forums, and sectoral engagements,' she said. 'And in every hall, every meeting, every township, the message was clear: We want a city that works.' City Power, which owes Eskom over R1 billion, will receive R4.6 billion over the next three years. The allocation aims to help stabilise the city's power grid. 'This infrastructure will not only support economic continuity, but also enhance household financial stability,' said Arnolds. In addition, Johannesburg Water will receive the largest allocation, R5.6 billion, to address a R27 billion infrastructure backlog and reduce water losses. 'Through intentionally increasing infrastructure investment, the city will begin to claw back on water losses that eat away at resources that could potentially be available to re-invest in infrastructure for the future,' Arnolds noted. The water utility loses over R2 billion annually due to leaks and illegal connections and is owed nearly R500 million by government departments and state-owned entities. Furthermore, the Johannesburg Roads Agency (JRA) has been allocated R2.8 billion, with R400 million earmarked for expanding stormwater infrastructure in flood-prone areas like Orange Farm and Ivory Park. The goal is to boost urban resilience and improve access between townships and economic hubs. 'These investments are part of the broader spatial transformation agenda, creating inclusive, walkable neighbourhoods and connecting marginalised communities to the city economy,' said Arnolds. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
Eyewitness News
6 days ago
- Business
- Eyewitness News
CoJ allocates R3bn to revamp CBD
JOHANNESBURG - The City of Joburg has now put plans to revamp the CBD on paper, with R3 billion allocated to improve conditions in the area. But this R3 billion is not exclusive to the city centre, as it will also go towards refurbishing other underdeveloped communities is Johannesburg. Finance MMC Margaret Arnolds announced during her budget speech on Wednesday that Eldorado Park, Lenasia South, Diepsloot and Orange Farm would also benefit from the money. Opposition parties in Johannesburg are concerned about the metro's efforts to revamp the CBD, arguing that the area needs a dedicated budget of its own. They believe the R3 billion allocated to underdeveloped communities was not enough, given the extent of decay in some areas. But Arnolds said city's departments also have their own individual budgets allocated specifically for the rejuvenation of the CBD. "These allocations include bulk infrastructure upgrades, human settlements support, and roads and stormwater systems linked to economic nodes." The Gauteng government is also running its own programme intended to rejuvenate Johannesburg's CBD.
IOL News
6 days ago
- Politics
- IOL News
Joburg's budget aims to combat rampant crime and improve safety
The Johannesburg Metropolitan Police Department has been allocated more resources to tackle crime across the city. The Johannesburg Central Business District (CBD), once a vibrant epicentre of finance and commerce, is now grappling with an alarming rise in crime that casts a long shadow over its efforts for revitalisation. But there is a glimmer of hope, with the city yesterday announcing new plans to tackle the scourge. As the police force employs various strategies to enhance security, the persistent issues of theft, robbery, and hijackings have put both residents and businesses on edge. The CBD's reputation for being a high-crime area is not unfounded, as reports indicate a worrying trend in criminal activity. Victims recount harrowing experiences, from being held at gunpoint during daylight hours to having their vehicles forcibly taken in broad daylight. The subject of the high crime rate in the province featured prominently in the White House last week when the South African delegation was hosted by the US government. Last year, Gauteng Premier was quoted as saying the crime in the province is giving him ''sleepless nights'. However, this could change if the City of Johannesburg has its way. Yesterday, the City of Joburg's pledge to protect residents from rampant crime across the municipality should come as a relief; moreover, as the city prepares to host world leaders later this year. Johannesburg will be hosting the G20 Summit, a meeting of heads of state and government held from 22 to 23 November 2025 Finance MMC Margaret Arnolds has announced increased resources for the Johannesburg Metropolitan Police Department (JMPD). Arnolds tabled the R89.4 billion budget for the 2025/26 financial year at the council chambers in Braamfontein yesterday.
IOL News
6 days ago
- Business
- IOL News
Johannesburg's R89 billion budget: Can it meet service demands?
Finance MMC Margaret Arnolds tabled the City's budget In Braamfontein, Johannesburg on Wednesday. Image: Nokuthula Mbatha Independent Newspapers Johannesburg Finance MMC Margaret Arnolds unveiled the R89 billion budget for the upcoming financial year, signalling the city's intent to meet rising service demands despite persistent fiscal hurdles. The budget has increased from R83 billion. Delivering her speech in Braamfontein on Wednesday morning, Arnolds' budget outlined a city leaning heavily on water and electricity charges, which continue to be Johannesburg's most significant revenue streams. With property rates and refuse collection fees also increased, the city is turning to its ratepayers to bolster financial stability. The City of Johannesburg faces two chronic challenges: unreliable revenue collection and infrastructure decay. These realities continue to undermine service delivery in one of Africa's largest metros. Arnolds clarified that the budget is fully funded. This assurance comes at a critical time, with residents increasingly vocal about service delivery shortfalls, load shedding, and water interruptions. The revenue surge was largely driven by higher service charges. Electricity and water tariffs are expected to rise significantly, placing pressure on both households and businesses already grappling with inflation and economic strain. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ 'Revenue for 2025/26 reflects a 9.3% increase compared to the previous year. This increase is primarily driven by service charges, which account for the largest share of the City's revenue base,' she said. According to Arnolds, electricity service charges are budgeted at R25.6 billion, water and wastewater charges will generate approximately R20 billion. Property rates are expected to generate R18.1 billion, and fuel levy allocations from National Treasury will amount to R4.57 billion. Increased property rates and refuse collection fees further contribute to the city's projected income, she said. While these moves are necessary to keep the city functioning, they risk deepening inequality in communities already under economic stress. As Johannesburg enters the new fiscal year, the question remains: can this ambitious budget restore public confidence and deliver real change on the ground? Arnolds is betting R89 billion that it can. 'The Joburg we want is not separate from the Africa we want - it is the foundation, the test, and the opportunity. Through this budget, Johannesburg is reaffirming its place as a World Class African City,' she said. IOL Politics
