CoJ a step closer to passing its pro-poor budget

5 June 2018

The Democratic Alliance (DA) in Johannesburg congratulates Mayor Herman Mashaba and his team on moving forward with a pro-poor budget which is meant to uplift the lives of the poor particularly the residents of informal settlements and to develop the City going forward.

The 7.17% increase for electricity is due to the VAT increase that the City of Johannesburg was unable curb, which is a slight decrease from the 7.37% originally put forward. This budget will ensure that proper maintenance of electrical faults and that all Johannesburg residents have equal access to electricity.

The average tariff increase on water, sewerage and sanitation is 1% lower than the initial proposal of 13.3% which is based on the Rand Water tariff increase of 12.2% and includes a 1% retail margin. The retail margin is essential to cover the costs of maintaining bulk water infrastructure. Without this, the City will effectively be subsidising the supply of water and not covering its true costs.

The City of Johannesburg’s R59 billion budget for the 2018/2019 financial year is geared towards infrastructure development and service delivery.

The EFF abstained from the voting last week, which led to our initial rates and tariffs not being passed. In an effort to prevent any further delays, the Mayor and his team have amended the tariff increases, and the budget, and will present it again next Monday.

Despite the impact of these amendments on the City’s revenue base and operational expenditure budget, its various programmes will continue unabated, and the Mayor’s service delivery objectives remain a priority.

The DA will continue to provide quality services to all Joburg’s residents as promised during the 2016 Local Municipal Elections. Come 2019, we will bring Change to all Gauteng’s residents.

Issued by Heinrich Volmink, DA Regional Chairperson of the Johannesburg Region, 5 June 2018