Record budget for Joburg

The city’s capital expenditure over the next three years will equal R32 billion, with R10.4 billion budgeted for the 2014/15 financial year – growing from R4.5 billion in 2012/13.

The operating budget is R36.7 billion.

MMC for Finance Geoffrey Makhubo, who made the announcement said Joburg was in the best financial shape ever.

“We continue honouring our financial obligations… The city has a healthy cash balance, annual surpluses, investments in strategic infrastructure and reports from the auditor general,” he said.

“We have worked towards building up cash reserves through more stringent cash management… Despite monthly expenditure of R2.2 billion, we have maintained a monthly cash balance in excess of R5 billion.”

He said R100 billion would be invested in infrastructure over the next 10 years.

“This is a key tool for improved service delivery which gives the city the ability to change the urban environment for the better through infrastructural development,” he said.

One of the main focuses of the city council will be the Corridors of Freedom, which will see R2.6 billion pumped into the Rea Vaya construction on the Louis Botha Avenue corridor.

Further, about R225 million will be spent over the next three years on housing along the Corridors of Freedom.

The Corridors of Freedom is aimed at bringing people in outlying areas closer to employment and economic opportunities in the city, through the creation of high-density environments consisting of a combination of accommodation, business retail space and an affordable public transport system.

The housing department has been granted a R3.5 billion budget, which will be used to upgrade the city’s 180 informal settlements, 60 of which will be transformed into formal settlements.

The transport department was allocated R4.4 billion, which will be used to fund projects such as the extension of the Rea Vaya network and rolling out cycle lanes.

City Power was allocated R20.5 billion to refurbish its ageing infrastructure, and invest in new bulk infrastructure in Rivasdale, Reuven, Berea, Ferndale, Lenasia and Halfway House, among others. Part of the utility’s budget will also be spent on alarm monitoring devices to curb vandalism and cable theft, which contribute to power outages.

Joburg Water was granted R10.4 billion, which will be spent on addressing urban water management issues and a biogas to electricity project.

More than R200 million of the entity’s budget will be invested in rolling out prepaid water meters to enhance water conservation and address water losses.

Pikitup received R2.2 billion which will be used to build a transfer station at Linbro Park, and waste treatment facilities at Diepsloot and Orange Farm.

Investments will also be made in garden sites, cleaning informal settlements, buy-back centres and sorting facilities.

The Joburg Roads Agency was given an operating budget of R6.4 billion to maintain existing infrastructure and improve road safety and mobility.