The City of Johannesburg said it recorded another revenue collection milestone in August after collecting R3.2 billion.
MMC for Finance, Dr Rabelani Dagada said the City had forecast the debt to revenue ratio to be 40.7 per cent, which is well within its target.
“Our main liquidity ratio measure, [the] cost coverage ratio, is also projected to be a healthy 36 days, well above National Treasury benchmark,” Dagada said.
He highlighted this after the African National Congress claimed that the City would soon be in financial ruin.
Despite Dagada’s assurances about the cost coverage ratio, Municipal Money, a National Treasury initiative which highlights how municipalities use their money, said that ideally, a municipality should have at least three months of cost cover.
The first quarter numbers of the 2017/18 fiscal year will be updated at the end of September.
The City’s financial performance for 2016/17 is yet to be audited by the Auditor General.
Meanwhile, Dagada said residents would be happy to know that the City is making steady advancements in resolving the billing crisis.
“Currently, only 17 000 billing queries on our billing system are yet to be resolved.
“This compared to more than 100 000 open queries when this administration began. Of these, 53 per cent are 30 days old, 30.87 per cent are between 31 to 60 days old, while 7.98 per cent are between 61 to 90 days old.”
Details: For more details about how the City manages its budget, visit www.municipalmoney.gov.za/profiles/municipality-JHB-city-of-johannesburg
Watch this video about cash balances and coverage:
ALSO READ:
ANC concerned about Joburg financial ‘crisis’
Joburg finances are in a healthy state – Dagada
