24 May 2006
Madam Speaker: Councillor Nkele Ntingane
MECs
Members of the Provincial Legislature
Executive Mayors and Speakers
MMC for Finance and Economic Development: Councillor Parks Tau
Members of the Mayoral Committee
Council Chief Whip: Councillor Bafana Sithole
Fellow Councillors
City Manager: Mavela Dlamini
Acting Executive Director of Finance and Economic Development: Mankodi Moitse
Managers and Officials of Council
Members of the Community
Distinguished Guests
The Media
Ladies and Gentlemen
INTRODUCTION
Madam Speaker, there are moments in history that require revisiting. When we do so we discover that a systematic and critical research on our past reveals an unusual wealth of information. As we do so, we discover knowledge and deep revolutionary heroisms that inspires us to do more.
The year 2006, Madam Speaker, provides us with an opportunity to celebrate a number of significant anniversaries. A hundred years later the Bambatha uprising against poll tax springs to memory. Just three weeks ago, we celebrated the tenth anniversary of the adoption of our Constitution. Next month, we will commemorate the thirtieth anniversary of the June 16 1976 uprisings. On the 9th of August we will gather to mark the fiftieth anniversary of the march to the Union Buildings. In October, we will observe the 120th anniversary of the founding of the City of Johannesburg.
These are not mere dates and days. They tell us something about where we come from, where we are and where we are supposed to be going. They relate directly to our central tasks.
In this City, our citizens represent a tapestry of experience and struggles. We are a cosmopolitan society that seeks and is entitled to a legacy of freedom, human rights and equality.
On 1 March 2006, voters from the length and breadth of our City went to the polls to choose candidates and political parties of their choice. The mandate is clear:
- Govern the City in a manner that accelerate development, improves service delivery and ensures good governance.
We have therefore received an unequivocal mandate to deepen democracy, build a non-racial and a non-sexist society. The citizens of Johannesburg expect all of us to make a meaningful contribution towards the creation of a prosperous South Africa.
After the election of the Executive Mayor and the appointment of the Mayoral Committee in mid-March, the political leadership of this City has been intensively engaged in a process of unpacking the commitments we made in the ANC manifesto and firming up on our plans for this new electoral term.
Madam Speaker, we therefore meet today to unfold our roadmap for the future. We are unveiling the Growth and Development Strategy (GDS), a document that is our long-term strategy. We are also tabling a concrete plan for the next five years, the medium-term Integrated Development Plan (IDP) and the accompanying medium-term budget.
We seek to build a World-Class African City for All.
CHALLENGES FOR THE FUTURE
We are of the view, Madam Speaker, that the City of Johannesburg's record of good governance, service delivery and development in the 2000 to 2006 term of office is very positive indeed. Over the course of the last few months, the accomplishments of the City have been sufficiently highlighted and I believe that they do not need to be repeated.
It is important, however, to say that it is essential to
re-state the key challenges that face Joburg and elaborate on our plans.
We are aware that we have the responsibility to eradicate social inequalities, address the burning issue of poverty, deliver services, engage issues of urbanisation and migration, fight HIV and AIDS, ensure urban renewal and regeneration, on going upgrading of our technology in the municipal administration as well as growing the economy and job creation.
We know that we have to do more to unravel the distorted settlement patterns of apartheid and transform "dormitory townships", inner-city residential areas and informal settlements into normalised neighbourhoods.
We know that we must address the current dysfunctional housing market. At the moment the rate of formation of new housing opportunities at the lower end of the spectrum nowhere near matches the demand. We are indeed looking at how we can come up with initiatives in areas of affordable rental accommodation and in the range of options available between RDP housing and the first tier of bonded housing.
We have to address the spatial form of the City and ensure as far as possible that new residential areas are established closer to job opportunities and in places that have basic infrastructure. A survey conducted in 2003 shows that 48% of Johannesburg residents spend more than 10% of their monthly income on transport costs - a situation that reduces household disposable income.
We are aware of the need to address the high cost of doing business in Johannesburg and we have been engaging both the industry and the small business sector in search of practical solutions. We are examining the unnecessary regulatory burdens that might affect business and prevent them from operating at full potential. And we recognise our responsibility to provide appropriate economic infrastructure and service inputs at a competitive standard and price.
We are keenly aware of the concerns about crime coming from both the business community and ordinary residents. We remain committed to mobilising all the necessary resources to protect the lives, the property and the investments of all our citizens.
KEY OPPORTUNITIES
The challenges are complex and enormous. We believe, however, that there are many opportunities. We need to identify these, act decisively and seize the moment.
The first important opportunity that we need to pick up on is the Gautrain. The injection of over R20 billion over the next five years will have a major positive impact on transport, spatial and economic influence on the City of Johannesburg and surrounding areas.
The second major opportunity is the Gauteng Global City Region initiative. This idea seeks to ensure greater collaboration between the provincial government and the various municipalities. This will enhance transport provision, service delivery and infrastructure development. It will also ensure greater co-operation, alignment and integration.
The third opportunity is the national goal to achieve a growth rate of 6% by 2010. The present economic growth coupled with Accelerated and Shared Growth Initiative of South Africa (ASGISA) provides us with the platform to strive for an even greater levels of growth. It affords us an opportunity to involve greater numbers of people to build the economy and share in its benefits.
The fourth key opportunity is the 2010 FIFA Soccer World Cup. As a City that will be hosting some of the major soccer matches, we have to speed up our efforts to improve transport, identify possible legacy projects and extend infrastructure.
These major opportunities, amongst others, need to be grasped and harnessed by our City in the interest of our long-term development.
PROCESSES LEADING TO THE SUMMIT ON GROWTH & DEVELOPMENT
The City of Johannesburg hosted its Growth and Development Summit on 12 May 2006 at NASREC.
The summit was attended by over 1 500 people from all walks of life. Participants included labour organisations; community trusts and community empowerment projects; non-governmental organisations (NGOs); faith-based organisations; planners and developers; academics and consultants; the professionals in organisations such as the Institution of Municipal Engineers of SA and the Electrical Engineers Association of SA; business associations such as JCCI / NAFCOC; various communities and government representatives: municipalities, provincial government departments as well as individual from the Presidency.
It is important to state that the summit was not the beginning, but the culmination, of a process of consultation and discussion that commenced in early April 2006. The process included:
- individual submissions from members of the public;
- inputs from meetings convened by ward councillors and
- the nine sector workshops that attracted participation from a diverse range of stakeholders.
- It is important to state that Members of this Council have also had an opportunity to deliberated upon the substance of the GDS and IDP in their respective Section 79 Portfolio Committees.
- Please allow me to highlight just a sample of the comments, from different sectors:
- The City was commended for its commitment to addressing poverty and emphasis was put on the need for more support to be given to vulnerable groups such as the aged and child headed households.
- Stakeholders were strongly supportive of a dedicated environmental MMC and department but pointed to weaknesses relating to enforcement of by-laws, "punishing offenders", dealing with illegal dumping, mine dumps and developments in certain areas that threaten wetlands such as the Jukskei catchment and Wilgespruit.
- Specific health service delivery concerns were raised:
- the queues and waiting time at clinics,
- role of environmental health officers and
- the prioritisation of HIV and AIDS support programmes.
- Concerns over power outages and the management of peak demand for electricity.
- Cleanliness and illegal dumping remain a problem in many parts of the City.
- Need for improved co-ordination between various crime-fighting bodies, particularly SAPS and JMPD coupled with the need for enhanced community involvement and responsibility for taking action against crime.
- Outstanding title deeds, transfer of housing projects and the issue of double allocation need to be resolved speedily.
- Improved transportation facilities for disabled persons. Involve disabled persons in decisions that affect them.
- Clear support programmes needed to facilitate development in the Second Economy and
- Implementing by-laws and regulations on overcrowded and abandoned buildings.
I believe, Madam Speaker, that it is important to state that stakeholders commended the City for an elaborate consultation process. They also called for a new and a regular platform to discuss youth development.
The diverse comments that were received have been carefully considered, and where appropriate, have been included in the updated versions of both the Joburg GDS and five-year IDP.
LAUNCH OF THE JOBURG GDS
Madam Speaker, I therefore have great pleasure in unveiling our Growth and Development Strategy. In our roadmap, this represents both the direction that we choose to travel and our ultimate destination. Andre Brink in his work 'On the Contrary' says: "There is an occasion on a journey to look past beginning and beyond end."
Given our time constraints today, please allow me to simply sketch the essential features of the Joburg GDS.
The GDS starts with an interpretation of what the future may hold on the basis of current and future trends and dynamics. Some of the issues analysed include the following:
- accelerating pace of urbanisation;
- the higher rate of fertility coupled with higher rate of mortality;
- the projected doubling of the number of households between 2001 and 2012;
- the restructuring of City's economy towards the service economy;
- the continuing urban sprawl and de-densification of the urban form;
- the reduction of the global stocks of fossil fuels and
- the anticipated widespread water scarcity in future.
Based on this analysis, we have then developed a clear argument for how to approach future development opportunities and challenges. Our 'development paradigm' boils down to the following six principles:
- Proactive absorption of the poor;
- Balanced and shared growth;
- Facilitated social mobility;
- Settlement restructuring;
- Sustainability and environmental justice and
- Innovative governance solutions
We have synthesized a single vision statement on what the future ought to be like 25 to 30 years from now. This new vision of the City of Johannesburg reads:
"In the future, Johannesburg will continue to lead as South Africa's primary business city, a dynamic centre of production, innovation, trade, finance and services. This will be a city of opportunity, where the benefits of balanced economic growth will be shared in a way that enables all residents to gain access to the ladder of prosperity, and where the poor, vulnerable and excluded will be supported out of poverty to realise upward social mobility. The result will be a more equitable and spatially integrated city, very different from the divided city of the past. In this world class African city for all, everyone will be able to enjoy decent accommodation, excellent services, the highest standards of health and safety, access to participatory governance, and quality community life in sustainable neighbourhoods and vibrant urban spaces."
FIVE-YEAR INTEGRATED DEVELOPMENT PLAN (IDP)
Madam Speaker, for the first time we present a full five-year Integrated Development Plan (IDP) for approval by the Council. I am immediately reminded of the Kikuyu (Kenyan) proverb that states: "One who never travels thinks it is only his mother who is a good cook!"
The IDP represents the immediate and intermediate stages of our journey. It charts out our five-year or medium-term plan for development and service delivery.
President Thabo Mbeki, in his 2006 State of the Nation address, emphasised the importance of every South African municipality having a realistic IDP to meet the country's development objectives, as well as the high aspirations of the South African people.
The IDP is, therefore, the strategic development plan for the City over this new term of office. It takes account of, and is informed by, the electoral mandate, the aspirations of local communities and stakeholders, the available resources and capacities and intergovernmental alignment required to accelerate growth, reduce poverty, broaden and strengthen service delivery and foster socio-economic development.
The IDP is directly informed by the GDS. The last section of the GDS maps out our long-term goals and strategic interventions. These are the long-term destination points, and the routes we will follow to get there, on our extended journey. The IDP picks these up and spells out their practical implications in clear 5-year objectives and programmes of action. These are where we want to get to in our journey over the next five years.
The IDP is not only informed by our long-term view in the GDS. In addition, it is underpinned by a new set of Six Mayoral Priorities.
While the priorities span across a range of City activities, they provide a sense of focus and urgency. Their brevity also enables us to simply convey to the broader community and City stakeholders our points of emphasis over the next five years. The new Six Mayoral Priorities are as follows:
- Economic growth and job creation
- Health and Community Development
- Housing and services
- Safe, clean and green city
- Well governed and managed city
- HIV/AIDS
I will devote some time for consideration of each of these priorities, as anchor points of our 2006/2011 IDP.
Firstly, on Economic Development and Job Creation our vision is to develop the City's economy such that it plays a role as the key economic hub on the continent, and increasingly become a national economic-growth leader by ensuring sustainable-shared growth that benefits all. Our IDP programmes for economic development include the following:
- The Sector Support Programme seeks to expand the base of the city economy through support to targeted sectors and industries with greatest potential for growth and labour absorption. These support some of the sectors identified in the Provincial Government GDS. Targeted sectors include cultural/creative industries, the tourism sector, business process outsourcing (BPO), and the small construction industry.
- The Beneficiation Programme will encourage the adding of value to locally produced goods before they are exported. For example we want to facilitate the growth of high-value added manufacturing, tourism and creative industries around Jewel City.
- The Emerging Industries Support Programme aims to facilitate development of current contractors into sustainable small-businesses in construction and materials supply, develop and operationalise a regional equity fund, and facilitate access to commercial and industrial property more suitable to the space requirements of start-up firms.
- We also want to make sure that people who were denied access to economic opportunities in the past, and areas of our City that did not benefit from economic activity historically, can really participate in our economy. This is our contribution to the 'shared' component of the Accelerated and Shared Growth Initiative. Amongst other things we will be scaling up our skills development programme, and our area development programme in the next few years. For example, the exiting new initiative called the Soweto Empowerment Zone will come to fruition in this term of office.
- Secondly, on the Health and Community Development priority we will work towards a City with a high quality, efficient, accessible and equitable health system for all.
- The Environmental Health Programme will work with business, partner organisations and communities to promote and support the achievement of consistently high standards of public health in food establishments, ECD facilities and the urban environment.
- The Communicable Disease Outbreak Response Improvement Programme will strengthen surveillance of emerging and re-emerging communicable illnesses and outbreaks in the city.
Some of our programmes include:
- The Social Package Programme, which will refine our support to indigent households. We already offer over R550 million in subsidised services to poor and vulnerable households. We believe that this can be better targeted.
- The Early Childhood Development (ECD) Programme will enhance the quality of ECD care through the provision of institutional support to ECD facilities across the city. We are completing a census of all ECD facilities across the City, after which we will be in a much better position to know what support they need. In the spirit of co-operative governance, and ASGISA, we will be approaching the Gauteng Provincial Government to see what bold and innovative new measures we can introduce working side by side.
- The Women Development Programme will promote the development and inclusion of women.
- The Sports Development Programme will improve citywide social cohesion through sport and recreation activities. Madam Speaker, on this one I believe there are major opportunities for leveraging off the excitement and energy of the 2010 FIFA Soccer World Cup to ensure that all our communities have access to quality locally organised sporting facilities and activities, across a wide range of sporting codes.
- The Youth Development Programme will run an awareness campaign using youth role models to counter drug use and alcohol abuse, expand the youth diversion programme for youth at risk of crime, and support youth mentorship and peer-support programmes run by partner organisations. We will also explore options for a Youth Forum for the City.
The third priority is Housing and Services. Our aim is the creation of sustainable settlements where there are a wide range of accommodation opportunities that are of good quality, adequately serviced and well-located coupled with a backbone of efficient and well-maintained service infrastructure, extended to all, so that all citizens can access an expanding package of innovative, safe, reliable and affordable services. This priority covers a very wide range of activities for the City including housing, water and sanitation, electricity and solid waste services. Therefore, a sample of the programmes that we will implement is presented here.
- The Informal Settlements Programme aim, where possible and appropriate, to formalise existing informal settlements through the relevant town planning and land registration process, and upgrade through the provision of services. We will reach the target of formalising all informal settlements within this term of office. We will also see major upgrading in these settlements through the provision of basic services, for which clear national commitments have been set down.
The formalising of informal settlements means amongst others that:
- the inclusion of the settlement in a township register;
- the provision of basic services such as water and sanitation;
- the location of each shack or unit on a particular street;
- the designated street should have a name, and each shack/unit should have a number;
- each shack/unit should be in a yard that is fenced and
- each informal settlement must have a clear programme for the removal of waste.
- The Basic Services Delivery Programme will strive over the next five years to eliminate all backlogs in access to basic services. The specific targets include:
- Achieve 98% coverage of at least LOS 1 for water;
- Achieve 95% coverage of at least LOS 1 for sanitation;
- Reduce reliance on chemical toilets to no more than 2% of the total population;
- Collect waste once a week from all formal and informal settlements by 2008;
- Distribute electricity to at least 95% of formalised households;
- Provide street lighting to 95% of formal areas in Johannesburg and
- Provide street lighting to at least 60% of informal settlements.
- The Housing Programme seeks to ensure the provision of affordable home-ownership and rental accommodation at scale, addressing the needs of a range of housing segments, with a special focus on the needs of poorer residents not currently catered for. Through both the City's own means, and in partnership with other actors and stakeholders, deliver 100 000 well-located and good quality housing units over the next five years. This includes the delivery of 15 000 rental housing units, 30 000 housing units through a Community Builder Programme and 50 000 mixed income housing units.
- The Service Delivery Improvement Programme sets out to achieve the following targets over the next five years:
- Reduce illegal dumping by 30% by 2008;
- Reduce electricity billing losses from 3% to 1%;
- Reduce electricity outages by 50% in year 2010 (bulk, medium and low voltage);
- Reduce unaccounted for water to 25% by 2011;
- Complete Operation Gcin'amanzi by January 2008 and
- Reduce illegal electricity connections by 70%.
- The Resource Conservation Programme has also set tangible targets:
- Recycle at least 15% waste by 2010;
- Reduce waste to landfill by 15% by 2010;
- 50% green waste diverted to compost facilities by 2010; and
- 97% compliance with the environmental legislation including an emphasis on oil spillage at electrical substations.
The fourth priority is a Safe, Clean and Green City, which points to an outcome that is the result of integrated programmes by a number of City departments and municipal entities. The priority covers a city where life, property and lifestyles are safe and secure, that the external environment is free of pollution and promotes environmental sustainability. Amongst others, the following programme will be implemented:
- The Crime Prevention Programme targets interventions to reduce crime and mitigate community conflict. There will be a focus on crimes that affect business and impact on perceptions of Johannesburg to ensure that there are no significant real or perceived risks to investment. But we are also making a women's safety a priority by aiming to reduce social crimes.
- The Traffic Safety Enforcement Programme will aim to give proactive information and education and ensure effective road-traffic law enforcement. We want to reduce road fatalities and injuries, and foster a culture of adherence to road-traffic laws.
- The Disaster Management Programme seeks to prevent avoidable disasters through information and education programmes, especially in disadvantaged areas at greater risk of fires, flooding and other disasters.
- The Biodiversity Protection Programme aims to conserve and preserve sensitive habitats and biodiversity by protecting formally recognised conservation areas.
- The City Greening Programme has set the following concrete targets over the next five years:
- o Expand the number of trees on sidewalks and in parks and private properties by 100 000;
- o Ensure that at least 5% of buildings in the City have green cover and
- o Enhance the integrity of the urban forest, something we are coming to see as a major environmental asset unique to this city.
- The fifth priority is a Well-Governed and Managed City. This encompasses good governance, spatial integration, urban management and an accessible, safe and affordable transport system. The following sample of programmes is highlighted.
- The Growth Management Programme seeks to encourage and enforce a compact urban form by minimising demand for investment and services on the urban periphery and optimal utilisation of investment within the urban core, namely, land, infrastructure and capital expenditure.
- The Development Application Improvement Programme will aim to improve the management of development applications still further. We will not have a situation where people have to wait months and months for their application to be approved or denied, and because of this just take the law into their own hands and build anyway. We will improve the interface with public on land use management and building plan application process through help desk, professional advice and information dissemination. Within this, we will prioritise development and building applications that support priority nodes and areas intended for densification
- The Urban Management Programme will focus on priority areas such as the Johannesburg inner city and the Randburg, Roodepoort and Lenasia CBDs.
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- The Strategic Public Transport Network (SPTN) Infrastructure Programme aims to prioritise the north-south, NASREC and Ellis Park flagship components. By the 2010 FIFA Soccer World Cup we aim to see road infrastructure and related furniture in place that really supports public transport. These will be the first public transport priority routes around the City, but not the only ones.
- In the area of financial sustainability we have developed a wide range of projects that envisage a city that is able to finance affordable and equitable delivery and development, and that maintains financial stability and sustainability through prudent expenditure, sound financial systems and a range of revenue and funding sources. A key programme here is to improve our customer service and interface. Others focus is on enhancing our revenue streams and expanding capital finance.
- In relation to good governance, there are also a wide range of programmes that will ensure that we maintain a solid record of ethical governance; and works much more effectively with other spheres of government, business, civil society and international partners to meet emerging development challenges.
- Sixthly, on the priority of HIV and AIDS, our long-term goal is to massively reduce HIV and AIDS prevalence/incidence rates and that reduces the impact of HIV and AIDS on communities. Our programmes in this regard as follows:
- The HIV Prevention Programme in partnership with communities, civil society and other spheres of government, seeks to prevent the spread of HIV and AIDS through community mobilisation, information and condom provision. This work should include a close collaboration between government and faith-based organisations.
- The Care and ART Support Programme. A very important new initiative here will be to facilitate the rollout of ART in the City, by for example supporting treatment adherence. We will start small and scale up our efforts over time.
- The HIV and AIDS Community Care and Capacity Development Programme will strengthen the capacity of communities to manage the impact of HIV and AIDS by expanding Jozi Ihlomile and other community outreach programmes that identify people or households in need; scale up nutrition programme such as the Food Bank to support individuals living with AIDS; introduce and roll out targeted training programmes and technical support for households affected with AIDS, in order to enhance self-sufficiency in respect of nutrition through initiatives such as community-gardens.
These programmes that come out of our Sector Plans in the IDP make the Six Mayoral Priorities real and concrete. They are but a sample of the bold, comprehensive and integrated programmes that chart the road that we intend to journey on in the course of the days, months and years ahead.
MEDIUM TERM BUDGET
Madam Speaker, I now turn to the Medium Term Budget. A Senegalese proverb says "Love, pain and money cannot be kept a secret; they soon betray themselves." Indeed, it is time to end the embargo and reveal what the numbers hold and how they talk to the plans that I had outlined earlier.
This year we present a spending plan of R21 billion, made up of a capital budget of R3,2 billion and an operating budget of R17,8 billion.
Revenue
The City anticipates raising revenue of R17,9 billion for 2006/07, R19 billion for 2007/08 and R19,9 billion for 2008/09. We have budgeted for average tariff increases of 5,1% for property rates, 5,1% for minor tariffs, 5,1% for domestic refuse removal, 8,2% for electricity charges and 8,1% for water.
The tariff increases for Johannesburg Water and City Power are above inflation. Over the next five years, the City will be investing approximately R6 billion on electricity and water capital infrastructure alone. In the 2006/07 financial year, capital spending for water and electricity will total R1,4 billion.
The City derives its revenue from the following major sources: electricity: 24,8%; water: 20,7%; property rates: 20,7%; refuse removal: 3%; fines and licence fees: 1,4%; operating and capital grants account for 20%; and minor tariff charges make up the rest.
Operating Expenditure
The City's total operating expenditure for 2006/07 is set at R17,8 billion, an increase of approximately R1,2 billion over the 2005/06 Budget. The City is budgeting for an operating surplus of R124,8 million for 2006/07 financial year, R209 million for 2007/08 and R293,5 million for 2008/09 financial year.
The operating surplus will be applied to address capital infrastructure backlogs.
The City of Johannesburg's 15 Municipal Entities (MEs), namely, City Power, Johannesburg Water, Pikitup, Johannesburg Road Agency, MetroBus, City Parks, Joburg Zoo, Johannesburg Development Agency, Johannesburg Property Company, Johannesburg Fresh Produce Market, Metro Trading Company, Johannesburg Tourism Company, Johannesburg Social Housing Company, Johannesburg Civic Theatre and Roodepoort Civic Theatre make up 53% of the City 's total budget.
City Power's allocation amounts to R3,8 billion, Johannesburg Water to R3,3 billion, Pikitup to R700,6 million, Joburg Roads Agency to R424 million, City Parks to R369 million, Metrobus to R352 million and the remainder is allocated to other entities.
The core administration makes up 47% of the City's total operating budget. Allocations are made to the City's new core departments, approved by Council in April 2006. These are Office of the Executive Mayor, Finance, Revenue and Customer Relationship Management, Economic Development, Corporate and Shared Services, Development Planning and Urban Management, Transport, Environment, Infrastructure and Services, Emergency Management Services, Metropolitan Police Department, Community Development (including Arts, Culture and Heritage Services), Health Services and Housing.
The core administration is made up of Finance at R1,6 billion that includes bad debts, depreciation and debt servicing costs. Subsidies to the Municipal Entities total R1,7 billion. Metro Police account for R839,5 million, Emergency Management Services account for R376 million, Housing totals R473 million, Corporate and Shared Services receive R382 million, Community Development is allocated R496 million, Health totals R267 million, Development Planning and Urban Management account for R463 million and the remainder goes to support functions.
The allocations support the core functions of the City of Johannesburg. In determining the final allocations, additional allocations were made to certain departments and entities to strengthen existing priority programmes or to initiate new priorities, in line with the Joburg GDS and 2006/11 IDP. Conversely, departments and entities were expected to increase their revenue and/or drive up efficiencies, thereby creating the space for additional spending on critical areas of service delivery.
Therefore, some of the key highlights of the operating budget, especially for the 2006/07 financial year, are as follows:
- Funding to the amount of R8 million has been made available for the establishment of a 2010 FIFA Soccer World Cup project office, based in the Office of the Executive Mayor.
- Mainstreaming and implementation of the Human Development Strategy, especially Early Childhood Development, will receive an amount of R6 million.
- The appointment of approximately 25 additional health care workers will provide the opportunity for the expansion of the City's HIV and AIDS programme as well as improvement in the expansion and access to primary health care is supported by an allocation of R6 million.
- R2 million is allocated for the appointment of 10 additional environmental health officers who will assist in the reduction of pollution, promote food safety and ensure vector control.
- An additional allocation of R10 million on the operating budget for housing top structures has been made, which complement the capital allocation of R128 million.
- Provision of R20 million has been made for the appointment of 500 additional Metro Police officers per annum over the next three years who will make a substantial contribution to crime prevention, traffic management and by-law enforcement.
- A by-law enforcement unit will be established in JMPD to provide an integrated approach to City by-law management and the reduction of infringements and this will receive an additional amount of R3 million.
- Emergency response improvement programme will see the appointment of additional fire fighters and emergency response team over the medium term period funded in the first year from cost savings of R14,9 million.
- The City's commitment to realising a safe, efficient and affordable public transport will receive additional support of R7,5 million.
- An additional allocation of R8 million has been made to JRA for the maintenance of the roads infrastructure
- Operation Clean Audit Report will also receive additional funding of R7,5 million.
- Implementation of Human Resources Shared Services Centre by the Corporate and Shared Services Department will receive an additional allocation of R2,4 million.
- Implementation and mainstreaming of environmental policies are supported in the Budget in the amount of R4,5 million and waste licensing will receive R2,9 million.
- The greening of Soweto will receive R7,6 million, which will primarily be driven by the planting of street trees to enhance the quality of life and the environment; in 2006/07, 5 000 trees will be planted.
- An additional allocation of R61,8 million is made to Pikitup to support street cleaning and inner city operations, the rollout of 240lts bins to Orange Farm, round collected refuse to accommodate waste volume growth in all regions and towards the transfer facilities from Linbro Park to Goudkoppies.
- A further allocation of R9,6 million was made to Metro Trading Company for the management of markets and taxi ranks.
- R5 million has been made available for the establishment of the new regional electricity distributor, named Johannesburg Restructuring of the Electricity Distribution (JORED).
- Public conveniences will be supported by a total of R2,5 million.
Capital Expenditure
The City projects capital spending of approximately R14 billion for the next fives years. In the 2006/07 financial year we will invest R3,2 billion on capital infrastructure, which will be financed through a combination of borrowing, surplus cash and grant funding. Grant funding from national government totals 8% of the total capital budget and 2% is received from provincial government.
The lion's share of capital spending`, Madam Speaker, will be made by City Power and Johannesburg Water, which will receive R713 million and R726 million respectively. An amount of R284 million will be spent on roads by the Johannesburg Roads Agency. Transport receives R335,6 million, Community Development's capital spending is set at R177 million, Housing at R128 million, the Johannesburg Development Agency is allocated R168 million, while the remainder will be provided to other areas of service delivery.
Some of the highlights of the capital budget are as follows:
- Johannesburg Roads Agency will receive a total allocation of R284 million, including a national Municipal Infrastructure Grant of R65 million, which will be used for tarring gravel roads in Diepsloot, Orange Farm and Ivory Park; R40 million to upgrading Koma Rd in Soweto; and R50 million to improve mobility in the City.
- Transport will receive R86 million for the development of the North-South SPTN Flagship Project, from Regina Mundi to Parktown; R42 million for the Baragwanath taxi rank; and R38 million for the N17 access to Soweto of the department's total allocation of R335 million
- R259 million is allocated to Johannesburg Water to continue the roll out of Operation Gcina'manzi, the City's innovative and extensive process of replacing the degraded water network; it is envisaged that 58 034 meters will be installed between July and December 2006, resulting in 6,4 million kilolitres of water conserved that amounts to R17,9 million.
- R69 million has been provided for the provision or upgrading of water and sanitation services in low income areas.
- City Power will spend about R100 million on refurbishment of substations, which will make a major impact on rehabilitation of the network thereby reducing electricity outages.
- City Power will also spend R57 million on the provision of public lighting in the inner city, Meadowlands, Midrand, Northcliff, Orange Farm, Lenasia and Soweto.
- R50 million is allocated to electricity service connections in Hurst Hill, Alexandra, Lenasia, Midrand, Randburg and Roodepoort; and R32 million for normalisation of the network in Alexandra.
- The balance of about approximately R450 million will be allocated to a variety of electricity infrastructure development projects across the City.
- Johannesburg Development Agency will receive a total of R168 million that will support regeneration of Randburg, Fashion District, Soweto Empowerment Zone, Constitutional Hill, Greater Kliptown and Newtown.
- Programme Phakama, aimed at the creation of a single customer value chain and a single revenue value chain across the City, including the municipal entities, will receive an allocation of R228 million.
- Emergency Management Services will receive a total of R17 million made up of R4,4 million for a fire station in Dieplsloot, R4 million for upgrading the Rietfontein Training Academy and R3 million for BESAFE centres.
- Johannesburg Metropolitan Police Department will receive R6 million for construction of a licensing onestop shop in Dube, Soweto
- The SAP R3 Motheo Programme is the new financial system that will align and integrate with Programme Phakama that seeks to provide a stable, sustainable and cost-effective operational platform is allocated R28 million.
- Community Development will receive R11 million for libraries, R7,7 million for social services and R158 million for sport and recreation facilities.
- Health will be spending R9 million for upgrading the Michael Maponya, Mayfair and Senoane clinics.
- Development Planning and Urban Management will receive a total of R84 million of which R46 million is allocated to Cosmo City for engineering services; and R39 million for storm water lines rehabilitation in Alexandra.
- The expansion of the facilities at the Johannesburg Fresh Produce Market will funded by a total amount of R 20 million.
- About R500 million will be spent by the City on projects relating to the 2010 FIFA Soccer World Cup, made up of upgrading water, electricity, sporting and transportation infrastructure and the upgrading of the Ellis Park and NASREC precincts.
* Housing, including social housing, will receive a total capital allocation of R128 million for the provision of essential services to Kliptown, Golden Triangle, Thulamtwana, Vlakfontein West and Orange Farm Ext 9 (R40 million); conversion of the Diepkloof Hostel into family units (R8,7 million); Municipal Infrastructure Grant funding has been secured for infrastructure provision to Stretford Ext 2, Zandspruit Phase 2 and Lawley Ext (R30 million); and City funding City Deep, Elias Motsoaledi, Vlakfontein Ext, Weiler's Farm and Doornkop (R42 million).
These projects total R3 billion and will go a long way to addressing the City's critical infrastructure backlogs.
Tariffs
The intention of the City is to provide the best services and address all the challenges facing services delivery. The tariff charge is affected by a variety of external factors such as inflation, to an extent by some national government policy decisions, certain international factors as well as the employment and affordability demographics of the City's residents.
The average electricity tariff will increase by 8,2%, water and sanitation by 8,1%, refuse removal by 5,1% and assessment rate will rise by 5,1%. All minor tariffs are increased at an average of 5.1%.
The impact of the tariff increase on the ratepayers from the 1July 2006 will mean that a ratepayer in Diepkloof who was paying R249,78 will now pay R273,28. The ratepayer in Eldorado Park paying R251 will now pay R273,28. The ratepayer in Ivory Park who was paying R60,78 will now be paying R66,36. The ratepayer in Randpark Ridge who was paying R992,47 will now pay R1029,12. Finally the ratepayer in Sandown who was paying R3 292,56 will now be paying R3 451,54.
Social package
The City will continue to commit more funds to supporting communities in need. The City spends approximately R570 million on its social package, which covers free basic electricity in City Power and Eskom supply areas, refuse removal, free basic water and the property rates rebates.
All households in the city are entitled to 6 kilolitres of free water per month and 50-kilowatt hours of free electricity per month. There is a 100% rebate on properties where the land value is less than R20 001.
On application, certain target groups such as pensioners; disabled persons; unemployed persons; and HIV/IADS patients and/or their orphans may apply for relief.
CONCLUSION
Madam Speaker, I think you will agree with me when I say that the roadmap is clear. We have demonstrated that the path to development, prosperity and the attainment of a World Class African City for All has been charted.
I want to take this opportunity to thank all the Members of the Mayoral Committee, the Councillors, managers and officials of the City and all those that have had a hand in making sure that this budget day is a success.
Allow me to close by quoting the words of Olive Schreiner, in her book 'Thoughts on South Africa': "It is customary to ridicule the traveller who passes rapidly through a country, and then writes his impression of it. The truth is he sees much that is hidden forever from the eyes of the inhabitants. Habit and custom have blinded them".
Thank you
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