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Joburg: City in healthy financial state

Feb 24 2012 13:37

Johannesburg - The City of Johannesburg on Friday said it was ahead of its revenue collection targets and on track to meet goals set in the 2011/12 budget.

"Figures for the first half of the financial year reflect the robust health of Johannesburg finances and a growing confidence among ratepayers who contribute to the city's coffers," mayoral committee member for finance Geoff Makhubo said in a statement.

"We are making steady progress to strengthen our revenue collection service and restore confidence in the integrity of our billing data," he said.

A revenue roadmap, announced in November last year, was already achieving measurable results, and the city was getting positive feedback from ratepayers whose billing concerns were being resolved.

The figures for the six months - compiled at the end of January - showed the city collected R11.86bn, 56.6% of the adjusted budget of R23.4bn.

"We have exceeded our revenue targets by R466.2m, and I am confident that we will also meet the 12-month goals," Makhubo said.

Johannesburg had a cash balance of over R2bn by the end of January, "which reflects the healthy financial position of the city".

"Our new revenue and customer relations system is being put in place over a 19-month period, but we are already seeing improved results," Makhubo said.

"We are improving the quality of the customer's interaction with the city and introducing a step-change in our collection system."

He said: "Our customers are showing greater inclination to pay for services such as water, electricity and waste removal, as they gain more confidence in the data that are reflected on their bills."

The six-months figures Makhubo referred to showed an operating surplus of R785.8m against a budgeted surplus of R688.7m.

The city's total operating budget for 2011/2012 was adjusted upwards by R836.8m to R32.81bn, while the capital budget increased from R3.72bn to R3.74bn.

Its budget for the 2012/2013 financial year is expected to be tabled in May.

johannesburg  |  city of johannesburg



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