Issued by: Joburg Metro Council
29 May 2002
Madam Speaker, MMC for Finance, Strategy and Economic Development, Councillor Kenny Fihla, MEC's, Members of the Provincial Legislature, Members of the Mayoral Committee, Councillors, Acting City Manager, Ms Phindile Nzimande, Executive Director Finance, Mr Roland Hunter, Senior officials in Council, The media, Distinguished guests, Ladies and gentlemen,
It is my pleasure to present to the citizens of the City of Johannesburg the 2002/03 budget.
On the capital side this budget stands at R1, 247 billion. We will continue to maintain it over the R1 billion mark in the medium term. Our operating budget stands at R11, 199 billion, rising slightly in the medium term. Overall, we present a sound budget, promising a better future for all the citizens of Johannesburg.
The consultative process leading to the formulation of this budget is reflective of the letter and spirit of the Constitution of the Republic of South Africa. It is in keeping with our view that participation is intrinsic to democracy. The city has, by engaging in this process, given a voice to the people to place specific issues on the agenda. We will continue to do so. We intend to remain accountable and transparent at all times. In these public participation processes, both the political representatives and officials have learnt from the people and vice versa.
Between February and May this year, the city hosted some 33 public participation sessions, attended by approximately 2700 people.
On 4 May 2002, the city convened a summit attended by about 500 stakeholders representing a wide range of interests within the city. The purpose was to get the views of the people on what should be contained in this budget. We also invited and received views from the general public on the budget.
In addition, Members of the Mayoral Committee have held regular meetings with various representatives and communities as well as special interest groups at a regional level. This has helped us to gain an insight into the communities of each region ad allowed them to have a better understanding of the work that this Council does, including matters of the budget.
In one of the aforementioned sessions, a public relations officer in Vorna Valley had this to say:
"More money should be allocated to services like road repair, fully staffed clinics, keeping open spaces clean and free from criminal activity, fighting crime.
The Council is trying to make a better life for all; they have good strategies and policies and the leadership team is clearly committed.
But they are trying to do too much at once - should do fewer things better; improve visibility of leadership; show more caring about the little things ... like robots being out of order and calls not being answered in departments.
I have phoned the call centre, and they were helpful."
Carole Mathibela, retired, living in Hillbrow had this to say:
"Priority should be safety and security, healthcare, street lights, water and sanitation.
The city is doing a good job of cleaning streets and getting rid of pavement street vendors. Water meters are not read properly, meter readers are guesstimating, which result in very high bills. I have phoned the call centre, but they could not help me."
Let me also acknowledge that throughout this process we have obtained valuable feedback. Allow me to also thank the citizens of Johannesburg for their rich ideas and comments. We really do appreciate the frank, open and reflective engagement.
A clear message coming from our people is that the city is doing a lot to improve the lives of the people and doing it right. But it is also clear that our people want more to be done right.
This budget is about doing more and doing it right. This is a budget that says we are visionary and that we care about the daily needs of our people.
Madam Speaker, Tiyiselani Manganyi was born in Mofolo Village, Soweto, on 11 November 1996. She is 6 years old and attends a pre-school. She will be starting school next year. She stays with her parents in Klipfonteinview (now part of the City of Johannesburg), an area with no schools, no proper sport facilities, no clinic, nor a creche. The area is partially electrified. The majority of the children attend school in one small hall.
At her age she has started to formulate a dream in her heart about what kind of place she would like to live in. Typical of children of her age, she would like to live in a house. She has started to develop expectations, albeit at an elementary level. She wants to enjoy herself in a park with her friends. She has a glimmer in her mind of a brighter future. She is young, enthusiastic, full of life and driven by an unstoppable zest for life.
This is a life and a dream we dare not betray. Indeed this budget seeks to build a brighter future for her.
Tiyiselani was just a year old when the Constitution of the Republic of South Africa crafted a vision for local authorities. Chapter 7 of the Constitution wants to see her live in a sustainable social and economic environment, in which her basic service needs will be met and her views will be listened to and respected.
This is a promise the Constitution made to her. This is a promise we in local government are obligated to realise.
In Johannesburg, we have already begun to craft a vision of a brighter future for Tiyiselani. We can see this future in the new logo we are launching today. This logo depicts the character, values and aspirations of the City of Johannesburg, namely a city that is an economic powerhouse in South Africa and a city that is culturally diverse, dynamic and vibrant.
It is a symbol, which allows the citizens of Johannesburg to express their pride and love for the city.
The logo personifies the smart and visionary vibrancy of Johannesburg. It says that Johannesburg is a city that has a bright future for all its citizens.
Madam Speaker, we are under no illusion about the difficulty of the road before us to attain the vision of a brighter future for the City of Johannesburg. We know that the road is fraught with immense challenges. Like many African cities, Johannesburg is faced with many challenges:
Madam Speaker, often the mistake is made that a budget is about empty promises. Far from that, this budget is informed by the aspirations and desires of the residents of Johannesburg. It is inspired by the vision to see Johannesburg transformed. It is a budget of the people and for the people.
Since the previous budget, the city has scored considerable gains:
The newly-established call centre is increasingly getting better in rendering an excellent customer service;
We have established the Johannesburg Metropolitan Police Department which stands at more than 1200 policemen and women who are fully trained and in uniform. This is coupled with an increasing number of surveillance cameras installed to monitor crime in the city;
We have formed the Johannesburg Aids Council to help advise the Mayoral Committee to devise and implement strategies to combat HIV/Aids;
We have established the Hillbrow Market and completed the first two phases of the mini-markets in Doornfontein;
We have built and completed the Mary Fitzgerald Square, a major development at the cultural precinct in Newtown.
These are but a few of the successes we have made since the previous budget. No doubt the city is on track and is changing for the better.
The vision of a brighter future for the citizens of Johannesburg is gaining momentum.
The Joburg 2030 strategy marks an important paradigm shift in our approach to planning. The strategy is data-driven and forward-looking in approach. Joburg 2030 re-positions Council from being perceived simply as an administrative entity and a service utility. Local government should also be seen as an agent for economic growth.
Let me hasten to add that Joburg 2030 should not be misconstrued to mean that development seizes to take place until the year 2030. Our short-term plans, informed by Joburg 2030, will continue to be implemented as we move into the future.
Already contained in this budget, as will be the case in subsequent budgets, are the ingredients of Joburg 2030.
We believe that Joburg 2030 constitutes a solid basis for robust future growth of the city. Importantly, Joburg 2030 identifies strong pillars for a strong economy, namely:
Bringing about efficiencies in our transportation infrastructure;
Dealing with the skills mismatch in the labour market;
Realising the full potential of the property market;
Ensuring competitiveness and sustainability of our newly-formed utility companies;
Revamping our telecommunications infrastructure, and
Addressing the crime situation and reducing it to a manageable and acceptable level.
Joburg 2030 promises to create an enabling environment in which business will thrive. We want business to do business in Johannesburg easily, lucratively and safely. We expect business to grab this opportunity with both hands.
In a display of local investor confidence, several businesses moved into the inner city. This trend is encouraging. We would like to see more businesses invest in the city.
Madam Speaker, the City of Johannesburg stands on the threshold of better economic prospects for its citizens. The World Summit on Sustainable Development to be held during August- September this year exemplifies this. The Summit is important to this city and our country, as it is to the entire world.
A lot of work has gone into the preparations to host the 65 000 participants, including more than 100 heads of state.
Ten years after Rio, it is our turn in the City of Johannesburg to host the World Summit. Both in scale and significance, the Summit is the largest-ever conference in the City of Johannesburg.
The Summit is expected to contribute R1,3 billion to the national economy from which the city stands to gain about R1 billion. The Summit is expected to generate about 14 000 jobs in Johannesburg. Our tourism sector will be boosted considerably by the Summit.
The legacy of the infrastructure development will live long after the Summit. In preparation for the Summit, the City of Johannesburg through the Johannesburg Roads Agency, has contributed R56 million towards upgrading roads in Sandton.
The whole world stands to gain from better policies, which will be characterised by the need for balancing social, political, and economic development. Thus the world seeks to build a sustainable future. This is a future to which Johannesburg fully subscribes.
During the Summit, we will showcase several projects that we are involved in or those that we have initiated.
In the Alexandra Renewal Project, we will demonstrate our determination, despite great odds,! to address the massive housing backlogs, acute unemployment and environmental degradation.
In the Klip River and the Moroka Dam projects, we will show how we are succeeding in dealing with the pollution of our river systems and the rehabilitation of our wetlands.
The GreenHouse People's Environmental Centre, to be officially opened before the Summit, which we have established in collaboration with the Danish Co-operation for Environment and Development (DANCED), will show how we are encouraging local communities to use energy, water and other materials with sensitivity to the needs of future generations.
Come the Summit, Johannesburg will indeed be proud to say to the world that we are committed to building a better society today, without compromising the needs of future generations.
Madam Speaker, we are a city that cares about its future. But we are also a city that cares about the present. Indeed the present is a foundation upon which to build a better future.
That brings me to the 2002/03 budget. This budget sets the foundation for Tiyiselani Manganyi. When she turns 36 in 2030, she will be an adult in a city with adequate job opportunities, living in a house that has running water, electricity and an environment where her refuse is being removed regularly. She will live in a street without potholes and will have access to a reliable and efficient public transport system. She will also live in a safer city. Eventually, Tiyiselani will enjoy a quality of life that makes her a proud citizen.
Madam Speaker, contained in this budget are the very ingredients of a caring city. Any budget should not only address the bread and butter issues, but should also reflect support for long-term strategic priorities.
On the expenditure side, our budget clarifies how we intend to deploy limited resources towards meeting the vast needs of our people.
In the budget for 2001/02, Council put in place two elements of a social package, namely 6 kl of water free per month, and a 100% rates rebate for owners of properties worth less than R20 001.
In the case of electricity, despite both technical and political challenges, we committed ourselves to introducing lifeline tariffs on 1 July 2001.
However, this was not possible, because City Power only supplies part of the city, with the poorest areas being supplied directly by Eskom. It became of critical importance that if we were to go ahead and deliver this service, there was to be meaningful coordination between City Power and Eskom.
In addition, we actively engaged the Minister of Minerals and Energy Affairs with a view to finding what we then referred to as a "positive outcome."
We persevered because we knew that there was a better tomorrow. I am happy to announce that from 1 July 2002, this Council will provide 50kwh of free electricity per month to residents of the city.
Also, from 1 July 2002, households with incomes of R1 100 or less will be able, on application, to receive sanitation and refuse removal services for free.
In total, we are setting aside approximately R335 million to cover the cost of this social package, benefiting approximately 250 000 households throughout the city. This very substantial allocation is an indication of the seriousness with which Johannesburg approaches the problem of poverty and social deprivation.
On the revenue side, this budget hopes to be sensitive to the social conditions of the residents, to be economically sensible to the needs of business, in order to promote the relative competitiveness of the city, to be financially transparent, cost effective and be able to support the medium-term budget framework of the city.
Accordingly, the City of Johannesburg proposes the following tariff increases:
Clearly with this budget, our people will experience a significant improvement in their quality of life. But it is only with the cooperation of the people that this budget will be able to meet their needs. The people can and must lend a hand:
l By ensuring that the services they receive are used in an economic, efficient and responsible manner; and l By paying for services Government cannot go it alone. In order to succeed, government will need the involvement of the people themselves. We therefore would like to take this opportunity to urge citizens to do the right thing and pay for the services they consume. Furthermore, the city has allocated R38 million towards meeting the housing needs of its residents. While housing is the competency of the Gauteng Provincial Government, the City of Johannesburg, within its financial and administrative capacity, will continue to collaborate closely with the provincial government in meeting the city's crucial housing needs. In addition, Council-owned companies have been allocated funds to help meet the diverse needs of communities. R695 million in capital expenditure has been allocated for this purpose. It is allocated as follows:
This should help improve the city's water and electricity supply, and ensure that we continue to fix potholes on our roads, maintain our traffic lights, and rejuvenate our inner city.
Madam Speaker, we want to see the budget we present today translate into a concrete plan of action to improve the lives of the people. The Integrated Development Plan (IDP) is that plan.
The IDP outlines a road map for achieving Joburg 2030. It provides short to medium-term targets against which progress will be measured.
In the IDP, we have set clear targets for measurable improvements on all our key goals. Accordingly, the city envisages the following:
In line with Joburg 2030, by December 2002, we aim to have completed the new urban boundary for the city to ensure economies of scale for urban development. Joburg 2030 should result in the creation of more job opportunities;
To deliver a social package to the poor that aims to significantly increase the number of poor households with access to free basic services;
To promote the principle of Batho Pele, we aim to significantly improve the level of service delivery rendered by Council-owned companies, as well as increase the level of customer satisfaction;
To tackle the scourge of HIV/Aids, we aim to be more than half-way through with the implementation of the local government HIV/Aids programme, which entails management of sexually transmitted infections (STIs), promoting the use of condoms, especially among vulnerable groups, as well as an increased usage of counselling and testing services;
To enforce law and order, we are committed to reducing the levels of crime and ensure better enforcement of by-laws through increased metro police visibility, utilisation of a focused by-law enforcement team and a functioning Municipal Court;
To rejuvenate the inner city, we aim to reduce informal trading through stringent implementation of by-laws, ensure reinvigorated city improvement districts (CIDs) and investment in urban regeneration projects.
While we care about the needs of our citizens, we also care about the interests of our employees. The City of Johannesburg is committed to the implementation of equity and skills development, and will strive to meet its targets as planned.
Achieving these goals is an important cornerstone for the city to transform itself into a viable and vibrant city, a city in which its citizens will live with pride.
Madam Speaker, in this budget we are saying that the city remains focused; and measurable steps have been taken to achieve its goals. By 2030, we want Tiyiselani to be able to find Johannesburg a better place to live in, where her hopes and desires can be fulfilled, and a place she can truly call home.
But a budget on its own cannot get us to our destination. Involvement of the people is a critical ingredient for the city's ultimate success. There are various ways in which this can be done. One way is to be actively involved in government processes, including budget formulation, as has already been demonstrated by the participation of the residents of Johannesburg during this budget process. Another is to make a financial commitment towards the success of the city by paying for services. In this way we can ensure that the city is able to render the best customer service and meet the basic needs of its people.
The city will and must succeed. We owe it to ourselves. More importantly, we owe it to Tiyiselani. Come 2030, Tiyiselani will remember the commitment we made to her. When that time comes, Johannesburg will be the home of her dreams that will have been translated into reality.
The promise we make is a commitment we will keep. History will vindicate us.
Let us in this Council put service above self. We may come from different political parties but we remain united in our quest to address the bread and butter needs of all residents in this city. We must rise to the challenge. Let us march into the future as one. There is indeed a better tomorrow!
I thank you.