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GROUP FINANCE

43 TABLING OF THE 2022/23 – 2024/25

MEDIUM-TERM OPERATING BUDGET
AND RELATED DOCUMENTATION

1 STRATEGIC THRUST

The Multi-Party Government (MPG) identified seven (7) Mayoral priorities, that the SDBIP
aims to achieve. Amongst other priorities, the priority relevant to GF is “A well-run City’’.

This essentially means that

• Joburg must become a centre of clean, honest government that puts residents
first, spends money wisely and is a pleasure to deal with.
• We must improve customer service and providing customers with services
that meet their individual needs and circumstances must be prioritised.

2 OBJECTIVE

To table before Council the draft medium-term operating budget for the 2022/23 to
2024/25 financial years in compliance with Section 16 (2) of the Municipal Finance
Management Act 56 of 2003 (MFMA, the Act).

3 SUMMARY

3.1 BUDGET PROCESS OVERVIEW

In terms of the Section 16 (2) of MFMA, the Mayor must table a draft annual budget at
a Council meeting 90 days before the start of the budget year.

In terms of Section 87 (1) of the MFMA, Municipal Entities are required to submit their
draft budgets to the parent municipality not later than 150 days before the start of the
entity’s financial year.

The budget process for 2022/23 commenced after the Office of the Executive Mayor
convened a political workshop from 3-5 January 2022 which formulated a set of
political priorities to inform planning and budgeting in the City of Johannesburg.
Departments and municipal entities (MEs) were requested to prepare budget proposals
and these budget proposals were then presented to the Budget Steering Committee
held on 1-4 February 2022. Departments and entities were requested to allocate
resources towards service delivery with a focus on Multi-party Government priorities
and initiatives.

The Minister of Finance’s budget speech was held on 23 February 2022 and the budget
does take in to account the latest national allocations as reflected in the Gazette. The
provincial allocation will be available later and the allocation will be included in the final
budget that will be submitted to Council during the month of May 2022.
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Consultation Process

The draft operating budget is tabled for information and consultation, rather than
approval and will be refined to consider the outcome of the public participation process.

3.2 MEDIUM-TERM OPERATING BUDGET

Medium-Term Budget Direction

The 2022/23 medium-term budget will focus on the following key political strategic
priorities:

 A city that gets the basics right;

 A safe and secure city;
 A caring city;
 A business-friendly city;
 An inclusive city;
 A well-run city; and
 A smart city.

Overview of the 2022/23 Medium-Term Budget

The proposed operating revenue budget is approximately R70.4 billion and the operating
expenditure budget is totalling R69.4 billion for the 2022/23 financial year. Revenue is
increasing by 7.7% and expenditure by 8.4% over the 2021/22 financial year.

The table below set out the medium-term revenue and expenditure budget for the
2022/23 - 2024/25 financial years.

Adjusted
Budget Budget Estimate Estimate
2021/22 2022/23 % 2023/24 2024/25
R 000 R 000 R 000 R 000
Revenue 65 365 136 70 417 387 7.7% 74 563 268 79 649 243
Internal revenue 8 826 364 9 325 087 5.7% 9 765 914 10 254 078
74 191 500 79 742 474 7.5% 84 329 182 89 903 321
Expenditure 64 060 106 69 409 540 8.4% 73 319 382 77 898 097
Internal expenditure 8 826 364 9 325 087 5.7% 9 765 914 10 254 078
72 886 471 78 734 628 8.0% 83 085 296 88 152 175
Surplus (Deficit) 1 305 029 1 007 847 1 243 886 1 751 146
Taxation 143 835 142 708 114 849 138 761
Surplus (Deficit) for the year 1 161 195 865 139 1 129 037 1 612 385
Capital grants and contributions 2 682 826 2 921 939 3 381 220 3 416 114
Surplus (Deficit) for the year including
3 844 021 3 787 078 4 510 257 5 028 499
capital grants and contributions
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The City is budgeting for a surplus (before taxation and capital grants) of R1 billion for
2022/23. The surplus will be applied towards the City’s working capital and funding of
capital investment.

Revenue Analysis

In 2021/22, the direct revenues were budgeted at R65.4 billion with revenue estimated
to be R70.4 billion in 2022/23.

Adjusted
Budget Budget Estimate Estimate
Revenue 2021/22 2022/23 % 2023/24 2024/25
R million R million R million R million
Property rates 13 479 14 133 4.8% 14 882 15 738
Service charges - electricity 19 834 21 758 9.7% 23 710 25 837
Service charges - water 8 909 9 777 9.7% 10 422 11 110
Service charges - sanitation 5 545 6 085 9.7% 6 487 6 915
Service charges - refuse 2 302 2 383 3.5% 2 508 2 657
Rental of facilities and equipment 490 516 5.3% 541 568
Interest - external investments 195 193 -0.7% 204 215
Interest - outstanding debtors 429 415 -3.2% 435 447
Fines, penalties and forfeits 850 892 4.8% 939 993
Licences and permits 9 9 5.0% 10 10
Agency services 350 367 4.9% 386 409
Transfers and subsidies received 10 846 11 585 6.8% 11 673 12 307
Other revenue 2 093 2 296 9.7% 2 359 2 437
Gains 35 7 -80.0% 7 7
Total revenue 65 365 70 417 7.7% 74 563 79 649

The increase of 7.7% in total revenue is made up of the 4.8% increase in property
rates, 9.7% in electricity revenue, 9.7% increase in water revenue, 9.7% increase in
sanitation revenue, 3.5% increase in refuse, 5.3% increase in rental of facilities, -0.7%
increase in interest external investments, -3.2% increase in interest outstanding
debtors, 4.8% increase in fines, 5% increase in licences and permits, 4.9% increase in
agency services, 6.8% increase in transfers received and 9.7% increase in other
revenue. Gains are decreasing with approximately by R27.9 million from the 2021/22
financial year.

The graph below reflects the percentages per revenue category of the total revenue of
the City.
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Fines, penalties
and forfeits
Interest - 1.3% Licences and Transfers and
outstanding
debtors permits subsidies…
Interest - external 0.0%
0.6% Other revenue
investments Agency services 3.3%
0.3%
Rental of facilities 0.5% Gains
and equipment 0.0%
0.7%
Service charges -
Property rates
refuse
3.4% 20.1%

Service charges -
sanitation
8.6%

Service charges -
water Service charges -
13.9% electricity
30.9%
The 2022/23 revenue budget for property rates, electricity, water, sewerage and refuse
amounts to R50.3 billion and it represents approximately 76.4% of the total revenue
budget of R65.9 billion.

The table below set out the average tariff increases for 2022/23 - 2024/25 financial
years.

Base Year Budget Year Budget Year +1 Budget Year +2

Service
2021/22 2022/23 2023/24 2024/25

Property rates 2.00% 4.85% 4.50% 4.50%

Electricity 14.59% 9.61% 10.00% 10.00%

Water 6.80% 9.75% 6.60% 6.60%
Sanitation 6.80% 9.75% 6.60% 6.60%
Refuse 4.30% 5.00% 4.50% 4.50%

The proposed tariff increases in the table above are averages, i.e. some customers may
pay more and others less than the average.

Property rates: Projected property rates revenue is estimated at R14.1 billion,

approximately 4.8% increase from the 2021/22 financial year. The increase is based on
an average property rates tariff increase of 4.85%. The increase includes improvements
made to properties, subdivisions, consolidations and new properties.

Service charges - electricity: The projected electricity revenue of R21.8 billion is a 9.7%
increase from the 2021/22 financial year. The increase is based on a proposed average
tariff increase for electricity of 9.61%, the strategic drive to reduce total electricity
losses to a level of 21% in the 2022/23 financial year and turnaround strategy
programmes to enhance revenue and profitability of the company. The average bulk
purchase price increase from City Power’s main suppliers (Eskom, Kelvin, Ekurhuleni
and Mogale Municipalities) is assumed at 9.2%.
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Service charges - water and sewerage: The projected water and sewerage revenue is
estimated at R15.9 billion, approximately 9.7% increase from the 2021/22 financial
year. The increase is based on an average tariff increase of 9.75%, based on a
proposed Rand Water tariff increase of 8.8% and an estimated population growth
increase of 0.95%.

Service charges - refuse: The projected refuse revenue of R2.4 billion is a 3.5%
increase from the 2021/22 financial year. The increase is based on a proposed average
tariff increase of 5%, the year-to-date performance and a proposed stepped tariff to
ensure affordability for lower priced properties.

Rental of facilities are increasing by approximately 5.3% and is mainly due to the
increase in rental housing units and the increase in revenues on leases.

Interest earned decreased by R15 million in line with payment and liquidity levels of the
city.

Licenses and permits are increasing by 5% and agency services are increasing by 4.9%.

Income from fines, penalties and forfeits increased with an amount of R41.2 million or
4.8% from the 2021/22 financial year.

Operating grants are increasing by R739.4 million or 6.8% from the 2021/22 financial
year. The table below reflects the transfers and subsidies received for 2022/23 -
2024/25 financial years.

Adjusted
Budget Budget Estimate Estimate
Transfers and subsidies received 2021/22 2022/23 % 2023/24 2024/25
R million R million R million R million
Equitable share 5 468 6 279 14.8% 6 908 7 606
Levy Replacement 3 921 3 967 1.2% 3 854 3 882
Finance Management 1 1 0.0% 1 1
Programme and Project Preparation
80 78 -2.7% 82 81
Support Grant
Public Transport Network Grant: Opex 1 009 892 -11.6% 458 484
NDPG Opex: Public Employment
126 126 -0.3% 126
Programme (PEP)
EPWP 9 8 -9.7%
Energy Efficiency and Demand Side
10 -100.0%
Management Grant
Infrastructure Skills Development 8 6 -20.0% 6 7
Recap of Comm Librarries Cond Grant 8 12 60.5% 13 13
Libraries Plan 9 10 5.6% 10 10
Primary Health 154 160 4.1% 167 175
HIV AIDS 28 29 5.0% 31 31

United Nations Environment Programme 16 16 4.5% 17 18

Other 1 1 1 1
Total revenue 10 846 11 585 6.8% 11 673 12 307
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Other revenue reflects an increase of R203 million or 9.7% mainly due to the
operationalisation of Rea Vaya Phase 1C (a). The tariffs for minor services will mainly
increase in line with estimated inflation of 5%.

Expenditure Analysis

The expenditure budget in the current financial amounts to R64.1 billion. 2022/23
presents a budget of R69.4 billion, an increase of 8.4% from the 2021/22 adjusted
budget.

Adjusted
Budget Budget Estimate Estimate
Expenditure 2021/22 2022/23 % 2023/24 2024/25
R million R million R million R million
Employee related costs 17 125 18 191 6.2% 19 013 19 857
Remuneration of councillors 177 185 4.9% 193 202
Debt impairment 5 319 5 964 12.1% 6 175 6 608
Depreciation and asset impairment 4 333 4 550 5.0% 4 801 5 082
Finance charges 2 666 2 889 8.4% 3 038 3 210
Bulk purchases 13 700 15 352 12.1% 17 094 18 813
Inventory consumed 7 191 7 869 9.4% 8 401 8 967
Contracted services 6 818 7 850 15.1% 7 736 8 091
Transfers and subsidies paid 175 184 5.0% 193 64
Other expenditure 6 556 6 375 -2.8% 6 674 7 005
Losses
Total expenditure 64 060 69 410 8.4% 73 319 77 898

The increase of 8.4% in expenditure is a result of the increase in employee related cost
6.2%, remuneration of councillors 4.9%, debt impairment 12.1%, depreciation 5%,
finance charges 8.4%, bulk purchases 12.1% (Eskom/Kelvin Power Station), inventory
consumed 9.4% which includes the water purchases from Rand Water, contracted
services 15.1%, grants and subsidies paid increased by 5% and other expenditure
decreased by 2.8%. Increases in expenditure categories are explained later in the
report under each cluster per department or entity.

The graph below reflects the percentages per expenditure category of the total
expenditure of the City.
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Transfers and Other expenditure

subsidies paid 9.2% Employee related
0.3% Losses costs
Contracted
0.0% 26.2%
services
11.3% Remuneration of
councillors
0.3%

Inventory
consumed Debt impairment
11.3% 8.6%
Bulk purchases Depreciation and
Finance charges
22.1% asset impairment
4.2% 6.6%

Financial Position

The table below reflects the summary of the proposed financial position.

Adjusted
Financial position
Budget Budget Estimate Estimate
2021/22 2022/23 2023/24 2024/25
R million R million R million R million
Total current assets 20 194 20 219 19 925 22 995
Total non current assets 88 018 90 033 94 120 96 927
Total current liabilities 18 100 18 411 16 545 18 763
Total non current liabilities 27 504 25 447 26 594 25 224
Community wealth/equity 62 608 66 395 70 905 75 934

The projected current ratio over the medium term is projected to be above 1:1. Cash
reserves are used to fund capital investment, hence no material improvement in the
current ratio.

Cash Flow

The table below reflects the summary of the proposed cash flow.

Adjusted
Cash flow
Budget Budget Estimate Estimate
2021/22 2022/23 2023/24 2024/25
R million R million R million R million
Net cash from (used) operating 6 696 8 077 9 662 7 688
Net cash from (used) investing (6 532) (5 846) (8 198) (7 276)
Net cash from (used) financing 734 (2 105) (1 053) 501
Cash/cash equivalents at the year begin: 6 645 7 542 7 669 8 080
Cash/cash equivalents at the year end 7 542 7 669 8 080 8 992
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The cash of the City is projected to be approximately R7.7 billion at the end of the
2022/23 financial year. It will be approximately R9 billion in the outer year. Cash
reserves are applied towards capital infrastructure spending.

The following Budget Assumptions were made:

CPI is estimated at 5% for 2022/23 and 4.5% for 2023/24 and 4.5% for 2024/25
financial years.

Estimated salary increases in line with the existing multi-year collective bargaining
agreement:

 4.9% - 2022/23.
 4.5% - 2023/24.
 4.5% - 2024/25.

Loans interest rates are estimated at 13.91% for 2022/23, 14.41% for 2023/24 and
14.47% for 2024/25.

Bulk purchases - City Power has assumed an average tariff increase of 9.2%. The cost
of water purchases from Rand Water is expected to increase by average 8.8%. Rand
Water purchases are now reflected under inventory consumed in terms of mSCOA
classifications.

The increase of debt impairment by 12.1% is in line with the projected collection level
of 90% for rates and services.

Finance charges are increasing by 8.4% over the 2021/22 financial year.

Contracted services increase by 15.1% mainly due to the increase in repairs and
maintenance for electricity infrastructure, allocation to cover shortfall on taxi
compensation, institutional review, GRAS (disciplinary board, advisory services, probity
and investigations into UIFW expenditure) and for the current valuation system.

Other expenditure is decreasing by 2.8%.

Reasons for the increase or decrease are explained later in the report under each
department or entity’s section.

Annexure A reflects the operating budget of the City including internal transfers.
Annexure B reflects the operating budget of the Core Administration.
Annexure C reflects the operating budget of the Municipal Entities.
Annexure D reflects the operating budget per vote (per department and municipal
entity).
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3.3 MEDIUM-TERM EXPENDITURE AND REVENUE PER CLUSTER:

For purposes of this report the expenditure growth percentage of the various
departments within the Core Administration is based on direct expenditure (excluding
internal transfers) and for the MEs it is based on total expenditure (including taxation) or
subsidies received.

SUSTAINABLE CLUSTER

Adjusted
Sustainable Cluster
Budget Budget Estimate Estimate
Revenue 2021/22 2022/23 2023/24 2024/25
R 000 R 000 R 000 R 000
Environment And Infrastructure 194 777 94 107 50 113 8 612
Housing 92 659 97 292 101 670 106 245
City Power 19 930 390 21 843 695 23 799 400 25 932 040
Johannesburg Water 14 647 259 16 065 953 17 122 035 18 233 850
Pikitup 3 454 219 3 668 821 3 851 358 4 063 100

Johannesburg Social Housing Company 331 837 348 080 364 520 382 192

Total Revenue 38 651 141 42 117 948 45 289 096 48 726 039

The Sustainable Cluster’s revenue budget increases by 9% from the 2021/22 financial
year.

Adjusted
Sustainable Cluster
Budget Budget Estimate Estimate
Expenditure 2021/22 2022/23 2023/24 2024/25
R 000 R 000 R 000 R 000
Environment And Infrastructure 155 697 163 326 171 176 179 636
Housing 1 047 479 1 097 601 1 148 675 1 208 490
City Power 19 752 000 21 673 382 23 699 224 25 782 659
Johannesburg Water 13 296 321 14 443 133 15 143 221 16 057 191
Pikitup 3 454 219 3 668 821 3 851 358 4 063 100

Johannesburg Social Housing Company 331 836 348 080 364 520 382 192

Total Expenditure 38 037 552 41 394 343 44 378 175 47 673 268

The Sustainable Cluster’s expenditure budget increases by 8.8% from the 2021/22
financial year. Below follow details of the expenditure budget per department and
municipal entity within the sustainable cluster:

Environment and Infrastructure

The revenue budget decreases by 51.7% to R94.1 million mainly as a result of a

decrease in concession fees from Kelvin Power Station due to the twenty-year contract
coming to an end in November 2022. The expenditure budget increases by 4.9% to
R163.3 million in line with the consumer price index. Below is a highlight of
programmes that are within the budget:
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 A city that gets the basics right:

 Prevention of untreated wastewater contaminating the environment;

and
 Improved waste management collection.

 A well-run city:

 Air Quality;
 Biodiversity management;
 Climate Change; and
 Open Space Planning.

Housing

The revenue budget increases by R4.6 million (5%) to R97.3 million in line with the
consumer price index. The expenditure budget increases by R50.1 million (4.8%) to
R1.1 billion in line with the consumer price index. Below is a highlight of programmes
that are within the budget:

 An inclusive city:

 Shelter and Accommodation – Upgrading of Informal Settlements;

 Shelter and Accommodation – Provision of Low-Cost houses Program;
 Construction of alternative housing units within the inner city;
 Refurbishment of flats, old age rentals and hostels; and
 Upgrading and Management of Informal Settlements (Acquisition of
land).

City Power

The expected surplus after taxation (excluding capital grants and contributions)
amounts to R170.3 million. Service charges - electricity: The projected electricity
revenue of R21.8 billion is a 9.6% increase from the 2021/22 financial year. The
increase is based on a proposed average tariff increase for electricity of 9.61%, the
strategic drive to reduce total electricity losses to a level of 21% in the 2022/23
financial year and turnaround strategy programmes to enhance revenue and profitability
of the company. The average bulk purchase price increase from City Power’s main
suppliers (Eskom, Kelvin, Ekurhuleni and Mogale Municipalities) is assumed at 9.2%.

The expenditure budget increases by 9.7% to R21.6 billion due to an increase in

employee related costs to cater for filling of critical strategic vacancies & alignment to
headcount structure; increase in contracted services to cater for repairs & maintenance
and consultation fees. Below is a highlight of programmes that are within the budget:
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 A city that gets the basics right:

 R20 billion-rand investment on fixing, replacing, and upgrading your

roads, bridges, water pipes, wastewater plants, and power grid; and
 A Vast Reduction in Electricity Outages.

 A safe and secure city:

 Buya Mthetho strategy to deal with theft and loss of assets; and
 Street Light Repairs.

 A caring city:

 Reducing the impact of COVID-19 and other pandemics.

 A business-friendly city:

 Improve ease of doing business;

 Skills for jobs and apprenticeship programmes for young people to gain
skills and experience;
 Compliance achieved on all non-compliance environmental directives;
 Redefine a customer centric service delivery value chain; and
 Business Continuity Support Programs and Plans.

 A well-run city:

 A financially sustainable City; and

 Revenue Enhancement Initiatives.

 A smart city:

 A smart City that embraces ICT innovation as a force for good.

Johannesburg Water

The expected surplus (excluding capital grants and contributions) amounts to R1.6
billion. Service charges - water and sewerage: The projected water and sewerage
revenue is estimated at R15.9 billion, approximately 9.7% increase from the 2021/22
financial year. The increase is based on an average tariff increase of 9.75%, based on a
proposed Rand Water tariff increase of 8.8% and an estimated population growth
increase of 0.95%.

The expenditure budget increases by 8.6% to R14.4 billion mainly to cater for an
increase of 8.8% for the water purchase price from Rand Water. Below is a highlight of
programmes that are within the budget:
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 A city that gets the basics right:

 R20 billion-rand investment on fixing, replacing, and upgrading your

roads, bridges, water pipes, wastewater plants, and power grid;
 Access to clean and reliable drinking water for all residents;
 Implement water management systems - reduction in water leaks;
 Prevention of untreated wastewater contaminating the environment;
and
 Compliance achieved on all non-compliance environmental directives.

 A safe and secure city:

 Buya Mthetho strategy to deal with theft and loss of assets.

 A caring city:

 Reducing the impact of COVID-19 and other pandemics.

 A business-friendly city:

 Skills for jobs and apprenticeship programmes for young people to gain
skills and experience.

 An inclusive city:

 Upgraded informal settlements, with basic services, emergency access

and tenure security.

 A well-run city:

 A financially sustainable City;

 Improving and strengthening the City’s financial position through
prudent financial management practices;
 24hour access to city via professional call centre and interactive
website;
 Redefine a customer centric service delivery value chain; and
 Plug revenue leakages and increase proactive maintenance of
infrastructure.

 A smart city:

 A smart City that embraces ICT innovation as a force for good;

 Improve supply chain management and accountability through the open
tender system and smart apps; and
 Smart recruitment apps that employs qualified staff.
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GROUP FINANCE

Pikitup

The revenue budget increases by 6.2% to R3.7 billion. Service charges - refuse: The
projected refuse revenue of R2.4 billion is a 3.5% increase from the 2021/22 financial
year. The increase is based on a proposed average tariff increase of 5%, and a
proposed stepped tariff to ensure affordability for lower priced properties.

The expenditure budget increases by 6.2% to R3.7 billion mainly due projects aimed
and improving cleanliness of the City including an increase in inventory consumed to
cater for bin liners issued to Co-operatives who assist to keep the City clean as well as
for project A Re Sebetseng. The subsidy allocation to Pikitup increases by 12.7% to
R1.2 billion. Below is a highlight of programmes that are within the budget:

 A city that gets the basics right:

 Recycling at source;
 A Re-Sebetseng and Clean streets; and
 Improved waste management collection.

 An inclusive city:

 Upgraded informal settlements, with basic services, emergency access

and tenure security.

 A well-run city:

 A financially sustainable City;

 Your billing queries resolved within 7 days;
 Qualified, capable and customer-oriented city officials;
 Zero tolerance to corruption; and
 Redefine a customer centric service delivery value chain.

Johannesburg Social Housing Company (JOSHCO)

The revenue budget increases by R16.2 million (4.9%) to R348.1 million as a result of
an increase to other revenue and transfers and subsidies received: Inter-Company. The
expenditure budget increases by R16.2 million (4.9%) to R348.1 million as result of an
increase to other expenditure. Below is a highlight of programmes that are within the
budget:

 A city that gets the basics right:

 Improved quality of JOSHCO project buildings through building

conditions assessments, and maintenance program; and
 Achievement of all Service Level Standards, as per Service Delivery
Agreement.
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 A safe and secure city:

 Secured projects that guarantee tenant and JOSHCO staff safety,

through;
 Access controls; and
 Biometrics and CCTV installations.

 A caring city:

 Student accommodation delivered in region F and D;

 Roof top gardens in all suitable building to increase food security for
the tenants; and
 Early childhood centres in projects to support children development
while building a community.

 A business friendly city:

 Job Creation and Investment in local economy.

 An inclusive city:

 Tenanting of social housing and affordable housing units across the

city; and
 Large scale delivery of social housing and affordable housing units
across the city.

 A well-run city:

 A financially sustainable Entity; and

 Improving and strengthening the City’s financial position through
prudent financial management practices.

HUMAN AND SOCIAL DEVELOPMENT CLUSTER

Adjusted
Human and Social Development Cluster
Budget Budget Estimate Estimate
Revenue 2021/22 2022/23 2023/24 2024/25
R 000 R 000 R 000 R 000
Community Development 48 216 54 933 57 578 59 138
Health 182 864 190 625 199 095 206 676
Social Development 719 755 789 825
Public Safety 1 258 928 1 320 043 1 389 690 1 469 084
Johannesburg City Parks And Zoo 1 252 015 1 297 902 1 357 043 1 423 670
Joburg City Theatres 217 839 228 614 239 493 250 927
Total Revenue 2 960 581 3 092 872 3 243 688 3 410 320

The revenue budget of the Human and Social Development Cluster increases by 4.5%
from the 2021/22 financial year.
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Adjusted
Human and Social Development Cluster
Budget Budget Estimate Estimate
Expenditure 2021/22 2022/23 2023/24 2024/25
R 000 R 000 R 000 R 000
Community Development 1 324 613 1 399 664 1 467 240 1 539 348
Health 1 395 150 1 463 396 1 529 752 1 599 691
Social Development 341 523 358 386 375 318 393 112
Public Safety 5 791 415 6 075 705 6 356 482 6 633 341
Johannesburg City Parks And Zoo 1 252 015 1 308 902 1 370 343 1 435 670
Joburg City Theatres 217 839 228 614 239 493 250 927
Total Expenditure 10 322 555 10 834 667 11 338 628 11 852 089

The expenditure budget of the Human and Social Development Cluster increase by 5%
from the 2021/22 financial year. Below follows the budget per department and
municipal entity within the human and social development cluster.

Community Development

Community Development’s revenue budget increases by 13.9% to R54.9 million. The

expenditure budget increases by 5.7 % to R1.4 billion as a result of funding required for
the repairs and maintenance of facilities. Below is a highlight of programmes that are
within the budget:

 A business-friendly city:

 Skills for jobs and apprenticeship programmes for young people to gain
skills and experience;

 An inclusive city

 Arts and Culture Programmes;

 Heritage Programmes;
 Museums and Galleries Programmes;
 Sports and arts facilities that promote activities we enjoy doing as
community;
 Competitive Sport
 Mass participation and Recreation;
 Sport Development;

 Smart City

 Library Services Access ;

 Service Extension, Reading and Resource Development;
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GROUP FINANCE

 A well-run city

 Improving and strengthening the City’s financial position through

prudent financial management practices.
Health

The revenue budget increases by 4.2% to R190.6 million mainly due to an increase in
the Provincial Primary Health grant allocation. The expenditure budget increases by
4.9% to R1.5 billion in line with the consumer price index. Below is a highlight of
programmes that are within the budget:

 A city that gets the basics right:

 Compliance achieved on all non-compliance environmental directives.

 A caring city:

 Maternal Health Care/Children Health Care/HIV and AIDS/

Communicable Disease;
 Reducing the impact of COVID-19 and other pandemics;
 More local clinics closer to where residents live; and
 Drug Treatment Centres to combat the scourge of drugs and the
impact on addicts.

 A business-friendly city:

 Fair access to EPWP opportunities and fair allocation of local contracts

through an audited electronic system; and
 Jozi Ihlomile Program.

 A well-run city:

 A financially sustainable City.

 A smart city:

 The eHealth system to safeguard and manage patient data and reduce
queues and waiting times at clinics.

Social Development

The revenue budget increases by 5% to R755 thousand mainly as a result of tariff

increases for the hiring of halls. The expenditure budget increases by 4.9% to R358.4
million in line with the consumer price index. Below is a highlight of programmes that
are within the budget:
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GROUP FINANCE

 A caring city:

 Support for vulnerable residents, including fair rebates on services;

 Assist the homeless including shelters, skills development,
rehabilitation facilities, and work opportunities in collaboration with
NGOs;
 Drug Treatment Centres to combat the scourge of drugs and the
impact on addicts;
 A food security programme in partnership with NGOs and the private
sector – small scale farming;
 Training and support for early childhood development;
 Consistent support and uplifting of marginalised communities such as
women, youth, people with disabilities and LGBTQIA+ through
coordinated programmes across all department;
 Substance Abuse Crisis Centre; and
 Substance Abuse Treatment Centre Programmes.

 A business-friendly city:

 Skills for jobs and apprenticeship programmes for young people to gain
skills and experience; and
 Urban Agriculture.

 A smart city:

 Policy Reform Initiatives.

Public Safety

The revenue budget increased by R61.1 million (4.9%) to R1.3 billion in line with the
indicatives. The expenditure budget increases by R284.3 million (4.9%) to R6.1 billion
in line with the indicatives. Below is a highlight of programmes that are within the
budget:

 A safe and secure city:

 Visible policing;
 By-Law enforcement in the City;
 Emergency Fire Management;
 Provision of ambulance services; and
 Security Services.

 A smart city:

 Integrated Intelligence Operating Centre.

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GROUP FINANCE

Johannesburg City Parks and Zoo

The revenue budget increases by 3.7% to R1.3 billion. The expenditure budget
increases by 4.5% to R1.3 billion in line with the consumer price index. The subsidy
allocation to City Parks and Zoo increases by 4% to R1.1 billion in line with the
consumer price index. Below is a highlight of programmes that are within the budget:

 A city that gets the basics right:

 Tree planting.

 A safe and secure city:

 150 park rangers to make our parks safe; and

 Buya Mthetho strategy to deal with theft and loss of assets.

 A caring city:

 Training and support for early childhood development.

 A business-friendly city:

 Job creation.

Joburg City Theatres

The revenue of Joburg City Theatres increases by 4.9% to R228.6 million. The
expenditure budget increases by 4.9% to R228.6 million in line with revenue. The
Joburg City Theatre’s subsidy increases by 4.4% to R173.4 million. Below is a highlight
of programmes that are within the budget:

 A caring city

 Reducing the impact of COVID-19 and other pandemics.

 A business-friendly city;

 Improve ease of doing business;

 Opportunity Centres to support businesses and encourage
entrepreneurs; and
 Promote business and leisure tourism as important job creators.

 An inclusive city

 Sports and arts facilities that promote activities we enjoy doing as a

community.
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GROUP FINANCE

 A well-run city

 Improving and strengthening the City’s financial position through

prudent financial management practices; and
 Improved customer satisfaction and quality of life.

ECONOMIC GROWTH CLUSTER

Adjusted
Economic Growth Cluster
Budget Budget Estimate Estimate
Revenue 2021/22 2022/23 2023/24 2024/25
R 000 R 000 R 000 R 000
Economic Development 134 877 133 700 126 000
Transport 1 161 383 1 246 700 832 722 881 046
Development Planning 89 304 93 684 97 900 102 307
Joburg Market 567 171 595 390 622 183 650 183
Metropolitan Trading Company 556 648 583 352 612 173 643 462
Johannesburg Property Company 893 787 958 934 1 026 770 1 100 091
Johannesburg Development Agency 118 249 124 057 129 745 135 770
Johannesburg Roads Agency 1 538 324 1 612 344 1 695 358 1 782 157
Metrobus 614 079 693 402 726 005 760 241
Joburg Tourism 17 024 82 159 85 083 88 960
Total Revenue 5 690 846 6 123 722 5 953 938 6 144 218

The revenue budget of the Economic Growth Cluster increases by 7.6%.

Adjusted
Economic Growth Cluster
Budget Budget Estimate Estimate
Expenditure 2021/22 2022/23 2023/24 2024/25
R 000 R 000 R 000 R 000
Economic Development 292 068 280 228 293 711 169 092
Transport 2 048 054 2 366 347 2 055 723 2 159 652
Development Planning 419 508 440 085 460 877 483 055
Joburg Market 451 227 468 726 491 063 514 704
Metropolitan Trading Company 556 648 583 352 612 173 643 462
Johannesburg Property Company 893 787 958 934 1 026 770 1 100 091
Johannesburg Development Agency 118 249 124 057 129 745 135 770
Johannesburg Roads Agency 1 603 576 1 682 772 1 761 205 1 845 304
Metrobus 614 079 693 402 726 005 760 241
Joburg Tourism 17 024 82 159 85 083 88 960
Total Expenditure 7 014 220 7 680 062 7 642 355 7 900 331

The expenditure budget of the Economic Growth Cluster increases by 9.5% from the
2021/22 financial year. Below follows the budget per department and municipal entity
within the economic development cluster.
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GROUP FINANCE

Economic Development

The revenue budget decreases by R1.2 million (-0.9%) due to the reduction of EPWP
grant funding. The expenditure budget decreases by R11.8 million (-4.1%) to R280.2
million mainly as of the Tourism function transferred to JTC. Below is a highlight of
programmes that are within the budget:

 A business friendly city:

 Improve ease of doing business;

 Revitalized industrial parks in townships that are safe and can attract
investment;
 Opportunity Centres to support businesses and encourage
entrepreneurs;
 Skills for jobs and apprenticeship programs for young people to gain
skills and experience;
 Fair access to EPWP opportunities and fair allocation of local contracts
through an audited electronic system;
 Restore the status of Joburg as the economic hub of the country and
the continent;
 Revitalize all CBDs through Central Improvement Districts, investment
incentives, property releases, and urban upgrades; and
 Determined participation in the green economy – amongst other
climate change interventions.

Transport Department

The revenue budget increases by R85.3 million (7.3%) to R1.3 billion due the increase
in other revenue by R202.4 million and the decrease in the Public Transport Network
Grant (PTNG) by R117.1 million. The operational expenditure budget increases by
R318.3 million (15.5%) to R2.4 billion due to the PTNG grant related expenditure, the
additional R33.8 million for the Rea Vaya Phase 1 (c)a and R183 million allocated for
taxi compensation.

Below is a highlight of programmes that are within the budget:

 An inclusive city:

 Safe and affordable public transport;

 Reclaim public spaces;
 Safe and reliable transportation systems; and
 Integrated transportation systems that are efficient.
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GROUP FINANCE

 A business-friendly city

 Job Creation and Investment in local economy;

 Safe and reliable transportation systems; and
 Integrated transportation systems that are efficient.

 A smart city

 Modernize

 New AFC (Automated Fare Collection) system;

 Interim System for the Rea vaya phase 1C(a); and
 Incorporation of smart technologies and APPs to communicate
with the community and stakeholders.

 A safe and secure city:

 Reclaim public spaces: Road safety and education outreach

programmes; and
 Tough on crime: Working with the JMPD to address encroachment on
Rea Vaya dedicated bus lanes.

 A city that gets the basics right:

 Holistic infrastructure strategy: Rollout and maintenance of transport

infrastructure including the Rea vaya, public transport facilities,
complete streets etc.

 A caring city:

 Keeping communities in good health: Ongoing implementation and

compliance with covid-19 protocols for staff, transport stakeholders
including commuters and the community.

Development Planning

Development Planning’s revenue budget increases by 4.9% to R93.7 million. The

expenditure budget increases by 4.9% to R440.1 million. Below is a highlight of
programmes that are within the budget:

 A safe and secure City

 Regular inspections to crack down on illegal building and land use.

 43.22

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GROUP FINANCE

 A caring City

 Global environment fund.

 A business-friendly City

 Approval of building plans within statutory timeframes;

 Approval of outdoor advertising applications within 90 days;
 Approval of rezoning, township and site development plan applications
within turnaround times;
 Development of bulk contributions policy;
 Development of outdoor advertising by-law; and
 Modernization of built environment automation system.

 A smart City

 Intelligent predictive modelling and data for smart decision making,

policy, good infrastructure and economic growth; and
 Maintenance of Corporate Geo-informatics spatial information.

 A well-run City

 Qualified, capable and customer-oriented city officials; and

 Plug revenue leakages and increase proactive maintenance of
infrastructure.

 An inclusive City

 Increase in the delivery of housing; speed up issuing of title deeds;

support expansion of sites and services program;
 Development plans that make your neighbourhood far more liveable,
enjoyable, and accessible;
 Development of Inner-City spatial planning tool;
 Implementation of inclusionary housing policy and transit orientated
development plan; and
 Maintenance of the Capex JSIP management tool.

Joburg Market

The revenue budget increases by R28.2 million (5.0%) to R595.4 million. The increase
is mainly as results of the increase in rental facilities income and an increase in the
sweeping account as well as an increase in the interest on external investment (bank).
The expenditure budget increase by R17.5 million (3.9%) to R468.7 million. Below is a
highlight of programmes that are within the budget:
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GROUP FINANCE

 A city that gets the basics right:

 Market Recapitalization:
 Market Repairs and Maintenance; and
Business Continuity.

 A safe and secure city:

 Integrated Waste Management;

 Surveillance and Enforcement; and
 Food Safety Measures.

 A caring city:

 Food support : To Support CoJ Indigent Programmes.

 A smart city:

 Overcome Power supply interruptions – Safe night time market

operations and the reduction of quality problems of produce in cold
storage and ripening caused by power failures.

 A business friendly city:

 To Provide Market Access to Farmers and Buyers for the Distribution of

Fresh Produce; Stakeholder and SMME support.

 An inclusive city:

 To Expand Opportunities to Historically Disadvantaged Groups: EPWP

and Learnerships.

 A well-run city:

 To ensure adherence to Good Governance Practices.

 A smart city:

 Introduction of Innovative Solutions and Technologies to Improve

Efficiencies.

Metropolitan Trading Company

Revenue of the entity increases by 4.8% to R583.3 million and the expenditure budget
increases by 4.8% to R583.3 million. Below is a highlight of programmes that are
within the budget:
 43.24

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GROUP FINANCE

 Through a smart city to bridge digital gap:

 Improve connectivity throughout the city to support economic growth

by providing free Wi-Fi services to citizens; and
 WIFI Access point rollout 400 access points.

Johannesburg Property Company (JPC)

The revenue budget decreases by R65.1 million (7.3%) to R958.9 million as a result of
a decrease to transfers and subsidies received: Inter-Company. The expenditure budget
increases by R65.1 million (7.3%) to R958.9 million as a result of a decrease to internal
transfers. Below is a highlight of programmes that are within the budget:

 A business friendly city:

 Unlocking Investment attraction opportunities through property

transactions and developments; and
 Create an environment for economic growth so that SMME and
business can invest and create the jobs that will continue to make
Joburg the City of opportunities.

 An inclusive city:

 Acquisition of properties to develop, repackage, and release as part of

addressing the urban decay and for service delivery purposes.

 A well-run city:

 Improving and strengthening the entity ’s financial position through

prudent financial management practices and increase revenue
generation; and
 Proactively contribute to and build a sustainable, social inclusive
competitive entity.

Johannesburg Development Agency

The revenue of Johannesburg Development Agency increases by 4.9% to R124.1

million. Expenditure increases in line with revenue by 4.9% to R124.1 million. The
subsidy increases by 1.4% to R41.2 million. The Agency’s programmes are day to day.

Johannesburg Roads Agency

The revenue budget increases by R74 million (4.8%) to R1.6 billion in line with
inflation. The expenditure budget increases by R79.2 million (4.9%) to R1.7 billion in
line with the Consumer Price Index. Below is a highlight of programmes that are within
the budget:
 43.25

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GROUP FINANCE

 A city that gets the basics right:

 Gravel Roads;
 Bridges;
 Stormwater;
 Road Resurfacing and Rehabilitation; and
 New Roads and Upgrading.

 A smart city:

 Traffic Signals Upgrade – Mobility.

Metrobus

The revenue budget increase by R79.3 million (12.9%) to R693.4 million mainly due to
the increased subsidy in line with the increase in expenditure. The expenditure budget
increases by R79.3 million (12.9%) to R693.4 million mainly due to the R18.7 million
allocated to contracted services for OHASA building compliance and R38.8 million for
the increase in diesel costs. Below is a highlight of programmes that are within the
budget:

 A smart city:

 Procurement of cashless ticketing system;

 Improve customer/community satisfaction;
 Reduce cash losses; and
 Improve revenue collection.

 A safe and secure city:

 Reclaim public spaces: Driver training and collaboration with the JMPD.

 A well-run city:

 Zero tolerance to corruption;

 Governance that reduces corruption; and
 Affordable services and tariffs.

 An inclusive city:

 Safe and affordable bus system; and

 Safe and reliable bus transportation system.

 A business friendly city:

 Job Creation and Investment in local economy: Assisting small to

medium companies;
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GROUP FINANCE

 A city that gets the basics right:

 Bus refurbishment;
 Increased bus economic life;
 Bus availability and reliability;
 Revenue increase Reduction of unemployment;
 Acquisition of new buses; and
 Infrastructure improvement strategy: Renovation and maintenance of
Metrobus buildings.

 A caring city:

 Keeping employees and communities in good health: Ongoing

implementation and compliance with covid-19 protocols for staff,
transport stakeholders including commuters;

Johannesburg Tourism Company

The revenue budget increases by R65.1 million (382.6%) to R82.2 million mainly due
to the establishment of the entity. Expenditure budget increases by R65.1 million
(382.6%) to R82.2 million. Below is a highlight of programmes that are within the
budget:

 A business friendly city:

 Establishment of the Tourism Real Estate - To unlock tourism economic

potential to achieve tourism growth in Johannesburg through real
estate;
 Establishment of Medical Tourism - To unlock tourism economic
potential to achieve tourism growth in Johannesburg through upgrading
of Medical Tourism facilities and other related activities;
 Catalyze Business Tourism - To maximize on business tourism potential
to grow the market and revenue in Johannesburg; and
 Township Tourism Programme - To connect a critical mass of tourism
products and use the route a vehicle to develop, position and promote
heritage offerings.

 A safe and secure city:

 Tourism Safety - To improve tourism safety in tourism hotspots in the

City for Johannesburg to become a safe tourist destination.

 A caring city:

 Tourism Job Retention and Creation - To support the tourism industry

to retain and create jobs for improved livelihoods.
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GROUP FINANCE

 A well-run city:

 City of Johannesburg and Lions Cricket Club Strategic Partnership - To

manage reputation of the destination and maximizing use of Wanderers
Cricket Stadium as COJ asset.

 An inclusive city:

 City of Johannesburg and Southern African Association for the

Conference Industry Strategic Partnership - To facilitate inclusive
business tourism and mainstream participation to related opportunities
to achieve tourism growth and enhance sector performance; and
 Convention Bureau: MICE Bidding Support and Coordination - To
increase Joburg’s market share of the MICE industry;

 A well-run city:

 Destination Attractiveness/Competitiveness - To position Johannesburg

as a leading business and lifestyle destination;
 Tourism Travel Trade: To conduct product promotion and destination
awareness for the City of Joburg; and
 Staging Johannesburg Exhibition - To showcase what Joburg has to
offer.

 A smart city:

 Destination Technological Access - To become a smart destination

support through a Smart City Priority objective.

GOOD GOVERNANCE CLUSTER

Adjusted
Good Governance Cluster
Budget Budget Estimate Estimate
Revenue 2021/22 2022/23 2023/24 2024/25
R 000 R 000 R 000 R 000
Group Forensic Investigation Services
Office Of The Ombudsman
City Manager 81 326 78 898 82 382 81 895
Group Information And Communication
Technology
Group Finance 23 628 541 25 176 790 26 483 799 28 112 945
Group Corporate And Shared Services 13 758 12 571 12 867 14 176
Speaker: Legislative Arm Of Council
Municipal Entities Accounts 210 981 187 122 193 067 199 280
Total Revenue 23 934 606 25 455 381 26 772 115 28 408 296

The revenue budget of the Good Governance Cluster increases by 6.4%.

 43.28

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GROUP FINANCE

Adjusted
Good Governance Cluster
Budget Budget Estimate Estimate
Expenditure 2021/22 2022/23 2023/24 2024/25
R 000 R 000 R 000 R 000
Group Forensic Investigation Services 111 175 116 619 122 029 127 779
Office Of The Ombudsman 34 848 36 564 38 266 40 053
City Manager 1 619 100 1 767 170 1 801 482 1 891 256
Group Information And Communication
917 201 962 408 1 011 302 1 064 577
Technology
Group Finance 5 643 901 6 066 395 6 346 193 6 690 526
Group Corporate And Shared Services 478 353 521 892 545 393 550 175
Speaker: Legislative Arm Of Council 466 147 500 752 525 735 553 351
Municipal Entities Accounts 1 764 503 1 851 032 1 947 144 2 053 922
Total Expenditure 11 035 228 11 822 832 12 337 544 12 971 639

The expenditure budget of the Good Governance Cluster increases by 7.1%. Below
follow the key focus areas for the budget per department within the good governance
cluster.

Group Forensic Investigation Services

Group Forensic Investigation Service’s expenditure budget increases by 4.9% to

R116.7 million. Below is a highlight of programmes that are within the budget:

 A well-run city with zero tolerance for corruption:

 Citizens of the City are encouraged to report cases of fraud and

corruption, theft of CoJ assets, maladministration, unauthorised,
irregular, fruitless and wasteful expenditure, cyber-crime and hijacked
properties by using the Anti-fraud and corruption hotline (0800 002
587) and email [email protected];
 Internal and external stakeholders are being educated about their roles
and responsibilities in assisting the City in preventing crimes, reporting
systems, and GFIS success stories through anti-fraud and corruption
awareness programs;
 The City has taken a zero-tolerance stance to fraud and corruption,
asset theft, hijacked properties, cyber-crime, vandalism,
maladministration (including Unauthorized Irregular Fruitless and
Wasteful (UIFW)), security breaches, and illicit connections;
 The Whistle Blowers Policy, which was authorized by the Council, is in
place and provides for the reporting of wrongdoing as required under
the Protected Disclosure Act (no 56 of 2000) and the MFMA financial
misconduct regulations. The Anti-Fraud and Corruption Hotline, which
is open 24 hours a day, seven days a week, is one of many community
reporting options;
 Intensify the combined operation that will be carried out to aid in
revenue collection with the help of Buya Mthetho initiatives; and
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GROUP FINANCE

 All reported concerns will be handled at the appropriate degree of

independence, and the multi-agency approach will be encouraged
through the utilization of other Law Enforcement Agencies (LEAs).

Ombudsman

Ombudsman’s expenditure increases by 4.9% to R36.6 million. Below is a highlight of

programmes that are within the budget:

 A city that gets the basics right, as well as a caring city:

 Proactive investigations by ensuring that service delivery failures,

complaints, human rights violations and maladministration are attended
and dealt with in a proper manner;
 Resolving complaints and disputes for the citizens of Johannesburg in
an amicable manner;
 Ensure the adherence to the principles of procedural fairness and
administrative justice;
 Acknowledging all complaints received from members of public relating
to alleged acts of maladministration by the City’s administration and its
employees, are investigated properly and dealt with; and
 Community outreach programs that educate residents on their human
rights and responsibilities.

The City Manager’s expenditure increases by 9.1% to R1.8 billion. The major increase
is attributable to Augmented Visible Service Delivery program, UIFW expenditure
investigations, probity advisory services and Disciplinary Board. Below is a highlight of
programmes that are within the budget:

 A well-run city:

 Ensure legally sound contracts that protect the interests of the CoJ and
promote service delivery;
 Provide and coordinate support to ME boards, management of the
business of the executive and its committees with respect to the
service delivery mandate of the MEs; and
 Cutting wasteful expenditure on non-core functions by monitoring
resolution of audit queries raised in the AGSA management letter.

 An inclusive city:

 Facilitation of IDP, CBP, Mayoral Imbizo in collaboration with the Office

of the Speaker and Group Communication; and
 Conduct responsive service delivery operations: A re Sebetseng
campaigns.
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GROUP FINANCE

 A safe and secure City:

 Increasing public safety to create security;

 Creating a city that is honest and open and fights corruption;
 Ensure successful prosecutions on by-law related infringements; and
 Reducing petty crimes and enforcing by-laws.

 A smart city:

 Maximise use of technology to empower residents and find solutions to

most pressing challenges.

Group Information and Communication Technology:

Group Information Communication Technology’s expenditure budget increases by 4.9%

to R962.4 million due to an allocation for IT related services. Below is a highlight of
programmes that are within the budget:

A smart city:

 A smart City that embraces ICT innovation as a force for good.

Group Finance

Group Finance`s revenue budget increases by 6.6% to R25.2 billion. The expenditure
increases by 7.5% to R6.1 billion. The budget exceeded the parameters due to
preparation of the General Valuation 2023. Below is a highlight of programmes that are
within the budget:

 A caring city:

 Support for vulnerable residents through fair property rates rebates;

 Stakeholder engagement on Property Rates Policy;
 Fair and accurate billing based on revised property rates; and
 In conjunction with Department of Economic Development run
procurement workshops for SMMEs.

 A well-run city:

 Improve governance and attainment of a clean audit;

 Improvement of profitability and liquidity ratio of the city;
 Implementation of Supply Chain Management Strategy;
 Implementation of phase II of Zenzele (e-Joburg Billing Portal; and
 Maintaining a clean audit outcome, as well as developing and
maintaining the city's valuation roll.
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GROUP FINANCE

 A smart city:

 Communication/Stakeholder Engagement - Service Delivery Outreach

Programme and public participation processes in activities such as
Property Rates Policy reviews; and
 Fostering an active and involved citizenry through virtual public
hearings when deciding tariff hikes and disseminating the new Property
Rates Policy, as well as continuing innovation in user interface through
Zenzele Portal.

Group Corporate and Shared Services

Group Corporate Shared Service’s revenue budget decreases by 8.6% to R12.5 million.
The expenditure budget increases by 9.1% to R521.9 million as a result of additional
funding of R20 million required for the institutional review. Below is a highlight of
programmes that are within the budget:

 A caring City

 Study opportunities for the young – Study bursaries for under-

privileged individuals.

Speaker: Legislative Arm of Council

Speaker’s Office expenditure budget increases by 7.4% to R 500.8 million. The

department is in the process of electing new ward committee members, and section 79
committees, as well as community gatherings, will be held physically. Below is a
highlight of programmes that are within the budget:

 A well-run city:

 Providing support to strengthen Sec 79 Committees and Chairpersons

in order to enhance oversight and scrutiny over the executive;
 Training of Councillors and Ward Committees;
 Efficient By-Law making review process in consultation with
communities to enable development and revision of City Policies;
 Increase public participation and stakeholder engagement through
timely publication of the IDP and Budget Review Process;
 Conduct education sessions for the public on IDP and Elections; and
 Creating a platform for communities to raise issues for redress by the
City.
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City of Johannesburg Council 2022-03-16/17

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GROUP FINANCE

Municipal Entities Accounts

The revenue for the municipal entities accounts decreases by 11.3% to R187.1 million
mainly due to the reduction of gains (JPC portfolio account). The expenditure for the
municipal entities accounts increases by 4.9% to R1.9 billion. The increase in
expenditure relates to the increased provision for depreciation and asset impairment,
other general expenditure (utility charges), and internal charges.

4 POLICY IMPLICATIONS

None.

5 LEGAL AND CONSTITUTIONAL IMPLICATIONS

This report is in compliance with the provisions of The Municipal Finance Management
Act (Act 56 of 2003).

6 FINANCIAL IMPLICATIONS

Consolidated Operating Budget 2022/23 2023/24 2024/25

(including internal transfers) R 000 R 000 R 000

Direct revenue 70 417 387 74 563 268 79 649 243

Direct expenditure 69 409 540 73 319 382 77 898 097
Taxation 142 708 114 849 138 761
Capital grants and contributions 2 921 939 3 381 220 3 416 114

Surplus (Deficit) for the year 3 787 078 4 510 257 5 028 499

7 COMMUNICATION IMPLICATIONS

In terms of Section 24 of the MFMA, the Accounting Officer must inter alia, submit the
approved budget to National Treasury and Provincial Treasury immediately after the
approval of the budget.

The approved budget will also be communicated to the community and various
stakeholders in the manner prescribed by law.

8 OTHER BODIES/DEPARTMENTS CONSULTED

Group Legal and Contracts, all Core Departments and Municipal Entities.

9 KEY PERFORMANCE INDICATOR

Management of the budget process in compliance with the Municipal Finance

Management Act Chapter 4.
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COJ : MAYORAL COMMITTEE 2022-03-13

GROUP FINANCE

IT IS RECOMMENDED

1 That the draft consolidated operating revenue of R70.4 billion, operating

expenditure of R69.4 billion, taxation of R142.7 million and capital grants and
contributions of R2.9 billion for the City of Johannesburg for the financial year
2022/23, and the indicatives for the projected medium-term period 2023/24 to
2024/25 be noted as set out in the following attachments:

(1) The consolidated operating budget for the City, Core Administration and
Municipal Entities as reflected in Annexure A, B and C.

(2) The operating revenue and expenditure budget by vote for the City as
reflected in Annexure D.

2 That the subsidies payable by Core Administration to the following Municipal

Entities be noted:

Adjusted
Municipal Entity
Budget Budget Estimate Estimate
2021/22 2022/23 2023/24 2024/25
R 000 R 000 R 000 R 000
Pikitup 1 091 488 1 229 923 1 284 434 1 344 818
Johannesburg Roads Agency 1 393 046 1 459 259 1 535 885 1 613 436
Metrobus 517 074 602 927 630 734 659 493
Johannesburg City Parks and Zoo 1 026 855 1 067 789 1 116 473 1 172 288
Johannesburg Development Agency 40 735 41 286 43 144 45 118
Johannesburg Property Company 526 278 554 305 609 098 663 622
Metropolitan Trading Company 268 325 282 711 297 999 312 385
Johannesburg Social and Housing Company 54 329 48 004 48 617 48 122
Joburg City Theatres 166 152 173 464 181 268 189 429
Joburg Tourism 17 024 82 159 85 083 88 960
Total subsidies to ME's 5 101 306 5 541 826 5 832 735 6 137 671

3 That the supporting information contained in the 2022/23 – 2024/25 Draft

Medium-Term Revenue and Expenditure Budget document as required in terms of
Section 17(3) of the Municipal Finance Management Act (Act 56 of 2003) be
noted in conjunction with this report.

4 That the Accounting Officer:

(1) In accordance with chapter 4 of the Systems Act:

(a) Make public the annual consolidated operating budget and other
documents referred to in section 17(3) of the MFMA; and
(b) Invite the local community to submit representations in connection
with the annual consolidated operating budget.
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COJ : MAYORAL COMMITTEE 2022-03-13

GROUP FINANCE

(2) Submit the annual consolidated operating budget:

(a) In both printed and electronic formats to the National and Provincial
Treasury; and
(b) In either format to any prescribed national or provincial organs of state
and to such other municipalities as may be affected by the budget.

(GROUP FINANCE)
(Ntuthuzelo April)
(Tel. (011) 358-3290)
(tc)

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