Contents of the final budget for the current administration of the City of Johannesburg presented on Tuesday reveals some tariff hike as Joburg residents will have to pay an additional 5.9% in property rates from July.
Also, an additional 13.2% will be added to tariffs for water and sanitation services.
As specified by member of the mayoral committee for finance Geoffrey Makhubo while delivering the City of Johannesburg’s budget speech in the city’s central on Tuesday, Joburg residents should expect a 6.93% tariff hike for electricity‚ and an average 6% rise in tariffs for waste removal services‚
The 2016/2017 fiscal year budget represents the last of the current African National Congress (ANC) led city council. Makhubo categorized the budget as a reflection of five years of hardwork by the current administration‚ which includes the expansion of services and public transport in the city.
Makhubo boasted of their achievements during a briefing prior to his budget speech that irrespective of the limitations surrounding the economic growth in the country‚ the metro had hopes of meeting a revenue collection to operate at a rate of 92% to 93%.
“Our financial capacity has improved and I can say here without fear of contradiction this administration has delivered‚” he said.
A R45.3 billion operating budget‚ and R9.5 billion capital budget was tabled by Makhubo on Tuesday, 71% of which will be funded by loans and internal funds.
A GDP growth forecast of 0.7% was expected to put pressure on City revenues‚ Makhubo’s speech read.
The tariff hike for services when compared to 2015 increases, had seen reductions due to increase in internal productivity.
Makhubo added that a wide range of ratings agencies and analysts including ratings upgrades by global agencies Fitch (in December) and Moody’s (in May) shared the same view the the administration in Metro city has delivered.