Tariffs relief prioritised in Jozi

SERVICE DELIVERY: CITY’S R68.1BN BUDGET ‘RESPONDS TO PEOPLE’S NEEDS’

City of Joburg passes its R68.1bn budget in the nick of time, narrowly escaping administration.

‘Covid-19 turned global economy upside down and the city has not been an exception.’

After many delays, seen as threatening adherence to governance, the City of Joburg yesterday passed a R68.1 billion 2020-2021 long-awaited budget – in line with the extended deadline which would have expired today.

The Gauteng government gave the city, which twice delayed the tabling, an ultimatum to table the budget or face being put under administration.

In terms of the Municipal Finance Management Act (MFMA) of 2003, a council should approve an annual budget for a municipality before the start of its financial year on 1 July.

In line with the MFMA, the Gauteng provincial executive council authorised the MEC for finance to approve the city expenditure, while awaiting the tabling of the metro budget.

The budget, tabled by Joburg member of mayoral committee (MMC) for finance Jolidee Matongo, was passed by 228 votes, with 29 councillors voting against.

Prioritising tariffs relief and rebates for pensioners – amid the impact of Covid-19 on Johannesburg residents – it represented an operating budget of R60.6 billion and a capital of R7.5 billion – with a threeyear capital budget appropriation of R22.6 billion requested.

The budget also placed housing and the provision of water, electricity, and road infrastructure development at the top priorities – alongside basic service delivery.

“It is clear that the Covid-19 pandemic has turned the global economy upside down, and the City of Joburg has not been an exception,” said Matongo.

He said the country’s economic meltdown due to the pandemic and the subsequent national lockdown, had a ripple effect the decline of the city’s revenue collection record – from April to date.

“The tariff setting process, which was presented through a public participation engagement, took into consideration the likely impact the initially proposed tariff increases had on the local economy, businesses and residents,” said Matongo.

There was also an increase in demand “on limited and fast-depleting resources where the municipality needs to continue to set its tariffs to ensure that there is sufficient revenue for service delivery”.

“As the economic hub of the country, our tall order has been to urgently explore ways in which we can offer relief to the people of Joburg.

“The tariffs contained in the budget demonstrate our commitment to inclusivity and accountability to the residents,” added Matongo.

Following public concerns and suggestions expressed by Johannesburg residents to the proposed tariffs, Matongo said the city took a decision to withdraw the proposed fixed charges of R200 for residential and R400 for commercial prepaid electricity.

Property rates tariffs, said Matongo, would also be reduced from the proposed 4.9% to 4%, with the water tariff dropping from the initial proposed 8.6% to 6.6%.

With the electricity tariff also decreasing from 8.10% to 6.23%, business rates ratio would be reduced from 1:2.6 to 1:2.5.

In explaining tariff relief interventions, Matongo said the pensioner income qualifying criteria increased by 6% – meaning a pensioner with a property value of below R2.5 million and an income of below R10 338 for the lower limit or below R17 719 for the upper limit, would receive a 100% rebate on their rates.

“This means more pensioners will now qualify for the city’s rebates.

“The city under the Government of Local Unity has gone to great lengths to develop a balanced budget that is responsive to the needs of the people of Johannesburg and the tough economic times we face today,” he said.

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More pensioners will now qualify for the city’s rebates