The FF Plus did not support the Johannesburg Metro Council’s budget of R83,7 billion for the 2024/25 financial year tabled earlier this week.
The fact that the budget is only 0,9% more than the initial 2023/24 budget, even though electricity tariffs have been increased by 12,72%, shows that the Metro’s revenue is busy shrinking.
The budget is completely out of touch with Johannesburg’s reality.
The budget fails to address the water crisis brought on by outdated infrastructure and leakages, the decay of the CBD, the vandalising and theft of electricity installations, and the fate of the municipal offices in Braamfontein which have been evacuated due to safety concerns.
Although the FF Plus appreciates the fact that property rates were increased by only 3,8%, the party rejects the increase of 7,7% for sanitation and 5,9% for refuse removal services.
Even though there is a serious backlog in maintaining and replacing infrastructure, the total capital budget has been slashed from R7,62 billion to R7,41 billion.
City Power’s capital budget was reduced by 5,38% to R1,28 billion, despite the great backlog in replacing, renewing and upgrading the electricity network.
Johannesburg Water has been allocated R1,22 billion, an increase of 13,9%. This increase, however, falls far short of addressing the estimated backlog of more than R20 billion in water infrastructure.
The collection rate was adjusted downwards to 86% and, consequently, bad debt provision was increased by 20,3% to R8,68 billion.
The Metro’s bad debt is the result of a tax boycott by certain areas, which has not been adequately addressed.
Despite the aforementioned, the budgets for the “politically facilitated agreement” and the “filling of strategic positions” were increased by 81,9% to R701 million and R100 million, respectively. The Mayoral Committee Member for Finance, Dado Morero, could not or would not disclose what the funds are earmarked for.
This budget fails to address the Metro’s many challenges.