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The Citizen
28-05-2025
- Business
- The Citizen
How Joburg plans to spend R89 billion
For the 2025/26 financial year, Johannesburg will have an operating revenue of R84.8 billion The council chamber of the City of Johannesburg. Picture: Neil McCartney / The Citizen City of Johannesburg Finance MMC Margaret Arnolds has tabled a R89 billion budget to address the city's service delivery challenges. Arnolds delivered her first budget speech at the Connie Bapela Council chambers in Braamfontein on Wednesday. The primary driver of this growth in total revenue is the rise in service charges, mostly for water and electricity. '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.' Electricity service charges are budgeted at R25.6 billion, up by 12.5%. 'This reflects the approved tariff increase of 12.41%, which is a pass-through from Eskom. 'There is also a focused plan to reduce technical and non-technical electricity losses from 28% to 25.8%,' said Arnolds. Water and wastewater charges will generate approximately R20 billion, up 11.8% from the current year. 'This will be underpinned by an average tariff increase capped at 13.9%, despite a Rand water increase of 15.3%,' she said. Refuse removal revenue increases by 6.4% to R3.3 billion, with service reliability a core deliverable tied to the tariff increase of 6.6%. Property rates, the City's second-largest revenue stream, are expected to generate R18.1 billion, reflecting a 4.6% increase. Arnolds described this as a funded budget even through the city has been struggling with rate collection over the years. Keeping the lights on in Joburg R4.6 billion has been allocated to City Power over the next three years. This is meant to stabilise the grid to prevent collapse and strengthen the network to improve efficiency. 'This is also meant for the expansion of the grid to meet growing demand, prevent system collapse due to the ever-growing and changing energy landscape and to ensure revenue enhancement and reduction of technical losses,' said Arnolds. Water and Sanitation Johannesburg Water will receive the second-largest capital allocation of R5.6 billion over three years to address both service backlogs and infrastructure failure hotspots. The city will invest in new sewer connections to informal settlements and densified townships. Roads and Mobility At least R2.8 billion has been allocated to Johannesburg Roads Agency (JRA) for upgrading high-traffic corridors linking townships to economic centres, particularly in Diepsloot, Soweto, and Lenasia. On the other hand, R400 million has been allocated for expanding stormwater infrastructure in Orange Farm, Ivory Park and Braamfischeville, to prevent flash flooding. JMPD The Johannesburg Metro Police Department (JMPD) will be empowered by a R16 million investment in Public Safety. This will enable the city to fight crime using the latest technology. ALSO READ: Morero's vision to make Johannesburg a world-class African city A pro-poor budget? Arnolds said the city had come up with a tariff strategy which is balanced and progressive. 'It ensures services are funded sustainably without excessive burdens. 'It also ensures indigent households continue to benefit from the Expanded Social Package (ESP). 'We are in the process of reviewing our ESP policy to be more inclusive and allow access to more vulnerable individuals,' she said. Arnolds said the city had the poor in mind when crafting the 2025/2026 budget. 'In this budget, all residents will continue to receive the first 6 kiloliters of water for free, 'Expanded Social Package (ESP) qualifying residents receive up to 15 kiloliters of free water, 50 kilowatt hours (kWh) of free electricity, free sanitation, and refuse removal because in Johannesburg, we believe that basic services are a human right, not a privilege,' she said. Pensioners will receive up to 100% rates rebates on homes valued up to R2.5 million. 'Indigent households, child-headed families, people living with disabilities, and the unemployed are supported through targeted rebates and subsidies on municipal services, housing, and transport,' she said. Arnolds said the city will keep the prepaid electricity surcharge unchanged at R200 (excluding VAT). She said this is a deliberate act to protect the poor against rising energy costs. 'This budget makes it clear: we will not govern in a way that reproduces inequality. Our pro-poor programme is a political choice – rooted in the values of equity, dignity, and redress. 'It is a signal that in the City of Johannesburg, no one will be left behind. Not on our watch,' she said. According to Arnolds, employee-related costs remain the largest expenditure item, aligned with the Multi-year Collective Bargaining negotiated agreement of 5.35% salary increase. She said repairs and maintenance spending has been ringfenced and increased to address ageing infrastructure, with a growing share of operating directed toward proactive maintenance over reactive fixes. She said contracted services and professional fees have been limited in growth. 'This ensures the city does not outsource its core responsibilities unnecessarily,' she said. NOW READ: ANC faction takes aim at Joburg mayor Dada Morero
The Citizen
06-05-2025
- Politics
- The Citizen
Illegal EMPD strike fails to take off
The officers who participated in the illegal strike in March could lose their jobs An Ekurhuleni Metro police car outside the Boksburg vehicle pound, 27 May 2022. Picture: Neil McCartney / The Citizen A planned strike by the Ekurhuleni Metro Police Department (EMPD) officers on Tuesday never materialised. There were reports that EMPD officers would stage a sit-in at their offices in Kempton Park. However, the municipality's spokesperson Zweli Dlamini confirmed to The Citizen that this did not take place. The officers are unhappy about their wages, and they have also complained about their working conditions. Previous illegal strike In March, more than 300 disgruntled officers blocked important arterial routes around the metro, including the R24m N3, R21, N12, and N17. The strike was declared illegal, and some of the officers who participated in the strike are currently facing disciplinary action. The city emphasised that EMPD officers fall under essential services, and their participation in the protest directly contravenes the Labour Relations Act. ALSO READ: Nearly 400 suspended EMPD officers facing the axe over illegal strike action Economic sabotage Opposition parties in the Ekurhuleni council described the illegal strike as economic sabotage because the municipality is home to many heavy industries. At the time, The Citizen reported that MMC of Finance Jongizizwe Dlabathi had criticised the South African Police Service (SAPS) for allowing the EMPD officers to block the roads. 'The police could have done better in terms of curtailing this kind of lawlessness on our national highways. 'This whole event was unfortunate and has inconvenienced people and businesses. This kind of action must not be promoted,' Dlabathi said. Meanwhile, the South African Municipal Workers Union (SAMWU) has criticised the municipality for allegedly threatening to fire the employees who were part of the strike. NOW READ: Gauteng government setting 'terrible example' by owing City of Ekurhuleni R382.3m
The Citizen
29-04-2025
- Politics
- The Citizen
Gauteng government setting ‘terrible example' by owing City of Ekurhuleni R382.3m
ACDP said it's not fair that government departments are treated differently to residetns when it comes to paying municipal bills. City of Ekurhuleni signs near the Germiston Civic center, 10 October 2022. Picture: Neil McCartney / The Citizen The African Christian Democratic Party (ACDP) in Ekurhuleni says it is 'shocked' that the Gauteng government owes the municipality R382.3 million for water and electricity. ACDP councillor Palesa Yates told The Citizen on Tuesday that R41.1 million of the amount owed has been owed for more than three months. 'The ACDP recently asked a question in council on the matter and was shocked to discover that various departments of our provincial government owe the City of Ekurhuleni R382.3 million. 'The Gauteng provincial government must pay its water and lights accounts on time,' Yates said. Government departments that do not pay their municipal bills on time set a 'very bad example to residents' who have their electricity cut off for non-payment, she added. 'It is not fair that government departments should be treated differently from ordinary residents,' she said. ALSO READ: City of Ekurhuleni and its R1.6 billion Eskom debt – How will it affect residents? More government entities owe the municipality Written replies to questions in council revealed that other state entities also owe the municipality. 'According to question responses tabled in council, the South African Revenue Services (Sars) owes R1.6 million, the Department of Correctional Services owes almost R17.6 million, and the Department of Infrastructure Development owes almost R170 million in rates,' she said. Yates said it is difficult to cut off municipal services for government departments and entities. 'The city forces residents to pay by cutting off their water and lights; but this can be a challenge when it comes to some government departments like basic education or health, for example. 'It would be wrong to cut off water to a hospital, for example, because patients will suffer. Different tiers of government, however, have platforms where they can engage. Robust engagements need to happen,' she said. Ekurhuleni's debt collection campaign Last year, the City of Ekurhuleni launched a campaign to recoup more than R26 billion from residents and businesses who have defaulted on their municipal accounts. During the launch of this campaign, the MMC of Finance, Jongizizwe Dlabathi, told The Citizen that residents who owe the municipality for services should pay or have their lights cut off. He advised that those struggling to pay should contact the city. What is the importance of paying for rates and services? Meanwhile, Yates said if metros and municipalities are not paid for services, they will run out of money to do maintenance work like fixing potholes and dealing with power outages. 'All users of municipal services must pay – unless they are indigents,' she said. The Citizen contacted the Gauteng provincial department for comment about its debt to the City of Ekurhuleni. However, the provincial government's spokesperson, Vuyo Mhaga, referred the media enquiry to the Gauteng Department of Infrastructure Development (DID). No response was received from DID at the time this article was published. NOW READ: The race to save Johannesburg: Who has the best plan to rescue the city?
