Transcript CoJ Template - Johannesburg

Medium Term Budget 2006/2007
City of Johannesburg
Department of Finance and Economic Development
Office of the Budget and Financial Planning
Total Budget for the 2006/07 financial year
Total Operating Budget =
R17.8 billion
Total Capital Budget
=
R3.2 billion
Total Budget for the City =
R21 billion
2
2004-05-06
Total Budget for the 2006/07 financial year
CITY OF JOHANNESBURG
TOTAL BUDGET
Expenditure
48%
Revenue
52%
Revenue
Expenditure
3
2004-05-06
Sources of Income COJ
The City anticipate to raise R17.9 billion, attributed mainly by
the following income sources;
•
Electricity charges R3.7 billion
•
Property Rates R3.1 billion
•
Water R3.3 billion
•
Subsidies R3 billion
•
Refuse R600 million
•
Fines and license fees R206 million
•
Interest earned on investment R335 million
4
2004-05-06
Sources of Income COJ
INCOME
WHERE IT COMES FROM
Subsidies
20.3%
Fines,licenses and
permits
1.4%
Other
6.6%
Electricity
24.8%
Interest
2.2%
Refuse
3.0%
Regional Levies
0.2%
Property Rates
20.7%
Water and Sewerage
20.7%
Electricity
Property Rates
Water and Sewerage
Regional Levies
Refuse
Interest
Subsidies
Fines,licenses and permits
Other
5
2004-05-06
How is budget spend
The City’s total operating expenditure for 2006/07 is R17.8
billion.
• The Utilities, Agencies and Corporate Entities make up 55% of
the City ‘s total budget.
•
City Power ‘s allocation amounts R3.7 billion
•
Joburg Water account for R3.3 billion
•
Pikitup account for R700 million
•
Joburg Roads Agency account for R424 million
•
City Parks account for R369 million
•
Metrobus account for R352 million
6
2004-05-06
How is budget spend
The core administration makes up 45% of the City’s total operating
budget.
•
Finance at R1.6 billion (this includes bad debts, depreciation
and debt servicing cost)
•
Metro police account for R839 million
•
Emergency services account for R376 million
•
Housing R473 million
•
Corporate services at R382 million
•
Community development at R496 million
•
Health at R267 million
•
Development Planning and Urban Management at R463 million
7
2004-05-06
How is budget spend
Expenditure per Entity
EXPENDITURE: UAC's
PER ENTITY
Market
1.5%
Parks
4.0%
Zoo
0.5%
Roads
4.6%
Bus
3.8%
Property Co.
0.4%
Civic
0.3%
Power
41.2%
Pikitup
7.6%
Water
36.1%
Power
Water
Pikitup
Roads
Parks
Zoo
Market
Bus
Civic
8
Property Co.
2004-05-06
Spending per department
EXPENDITURE : CORE ADMIN
PER FUNCTION
City Manager
28.2%
CSSS
4.8%
Finance
20.9%
Economic
0.7%
Community
6.3%
Transport.
5.5% EMS
4.7%
JMPD
10.6%
DPUM
5.8%
Housing
6.0%
Economic
Health
Community
3.4%
Water and Energy
Health
Housing
Transport.
Finance
CSSS
City Manager
Environment
0.8%
Water and Energy
DPUM
2.3%
JMPD
Environment
EMS
9
2004-05-06
Budget Highlights
•Establishment of 2010 project office
•Urban management in the regions
•Appointment of approximately 25 health care workers
•Additional 500 Metro Police Officers per annum
•Establishment of the by-law enforcement unit in JMPD
•Additional allocation for the maintenance of roads
infrastructure
•Upgrading of ablution facilities
•The greening of Soweto
•Additional allocation towards street cleaning and
Inner - City operations
•100 fire fighters
10
2004-05-06
Capital Estimates
Capital Estimates for three years
Funding Sources
Own Funding
2006/2007
2007/2008
2008/2009
R’000
R’000
R’000
2,412,202
2,041,276
2,000,129
Grant and donations
487,717
625,652
393,870
Municipal Infrastructure Grant
293,300
338,500
296,200
3,193,219
3,005,428
2,690,200
The City will be investing approximately R9 billion over next three
years.
11
2004-05-06
Sources of Funding Capex – 2006/2007
CAPITAL BUDGET
PER SOURCE
MIG
9.2%
Loan & Own funding
75.5%
Other Grant funding
15.3%
The envisaged capital spending is approximately R3.2 billion and will be
financed through a combination of borrowing and surplus cash to the tune of
R2.4 billion and R781 million from the Consolidated Municipal Infrastructure
programme and other provincial and government transfers.
12
2004-05-06
Capital budget
More money will go towards;
•
Electricity infrastructure R713 million
•
Water R726 million
•
Roads R284 million
•
Housing R128 million
•
Development Planning R84 million
•
Community Development R177 million
•
Johannesburg development agency R158 million
•
Transportation R335.6 million
13
2004-05-06
Capital budget per entity
CAPITAL BUDGET : ME'S
PER ENTITY
City Power
33.4%
JHB Water
34.0%
Pikitup
2.4%
Roodepoort Civic
0.1%
Social Housing Co.
1.1%
Roads
13.3%
Metro Trading Co.
0.1%
Metrobus
0.4%
Tourism Co.
0.1%
Fresh Produce Market
2.5%
Property Co.
2.8%
Develop Agency
7.4%
Zoo
0.9%
City Parks
1.4%
14
2004-05-06
Capital budget per Department
CAPITAL BUDGET : CORE ADMIN
PER FUNCTION
Economic Dev.
0.0%
Corp Shared Services
1.5%
Dev. Planning
8.0%
Rev & Customer Rel Mngmt
22.4%
Transportation
31.8%
Finance
4.2%
Environment
0.3%
OEM
1.0%
Infrustructure & Services
0.0%
Health
0.9%
MPD
1.3%
EMS
1.6%
Community Dev.
17.0%
15
2004-05-06
Capital budget per Department
Total Capital Expenditure for Programmes
2006/2007
Housing Programme
7%
2010 Programme
12%
The Urban Marginalised
Areas Programme (UMAP)
23%
Sustainable Environment
Programme
2%
Strategic Infrastructure
Investment Programme
16%
Corridor Development
Programme
7%
The Regeneration
Programme (RP)
14%
Nodal Programme
6%
Strategic Transportation
Interventions Programme
(STIP)
13%
16
2004-05-06
Proposed Tariff increase
Tariffs
2006/07
Assessment Rates
5.1%
Water
8.1%
Electricity
8.2%
Refuse Removal
5.1%
Minor Tariffs
5.1%
17
2004-05-06
Impact of the Tariff increase
Current
Proposed
Increase
Diepkloof
R249.78
R273.28
R23.50
Eldorado
R251
R273.28
R22.28
R60.78
R66.36
R5.58
R992.47
R1 029.12
R36.65
R3 292.56
R3 451.54
R158.98
Ivory Park
Randparkridge
Sandown
18
2004-05-06
Social Packages
The City is spending approximately R570 million towards the
social package
Assessment rates

100% rebate on properties worth less than R20 001

40% remission for pensioners who qualify on properties worth more
than R20 001
Water

Free 6 kl per household per month
Electricity

Free 50 kwh per household per month (All customers on lifeline)
19
2004-05-06
Social Packages
Service subsidy is available to the following categories of
people(refuse collection and sanitation)

Total Family income should not exceed the maximum income
threshold which will be equivalent to twice the value of National
grant plus R1

The unemployed, orphans, pensioners, HIV/AIDS patients and
persons with disability grants, are also catered for. (only
applicants who qualify in terms of the policy)
20
2004-05-06
THANK YOU
21
2004-05-06