Joburg’s financial health is in such a good state, international rating agencies such as Fitch and Moody’s have given the city a positive review.

Unveiling Joburg’s 2014/2015 annual report last week, Member of the Mayoral Committee for Finance, Councillor Geoffrey Makhubo said this is a stamp of approval and means the city is in safe hands.

“The fact that we’ve received favourable ratings from the two major agencies is good news for residents of the City. It means we can get access to credit at good rates to continue our work of rolling out infrastructure throughout the city,” said Makhubo.

The City of Joburg’s 2014/15 revenue jumped 8% to R42 billion. The bulk came from service charges such as water and lights. Total expenditure, which represented a 12% increase, was R37.8 billion and the city has R4.9 billion cash in its coffers.

“I’m pleased to report that the city received an unqualified audit opinion from the Auditor-General. It is also worth noting that the number of municipal entities that achieved clean audits has increased to six,” said Makhubo.

The six include the Joburg Social Housing Company, Joburg Theatres, Joburg Roads Agency, Pikitup, Joburg Property Company and the Joburg Development Agency.

Makhubo said Joburg achieved a R3.9 billion surplus as a result of the “city’s financial management strategy and development plan”.

EPWP, Jozi@work and smart meters steal the show

Some of the highlights in the 12 months under review include the installation of 61 871 electricity smart meters, resurfacing 675.6km of city roads, rolling out 100 Wi-Fi hotspots in clinics, libraries and theatres, supporting 4 681 small, medium and micro enterprises, creating 51 977 Extended Public Works Programme opportunities and 2 496 jobs through Jozi@Work.

“On average, 5 500 individuals in the city benefited from Johannesburg’s food programmes, 6 160 orphans and vulnerable children were supported through the city basket of services and 39 078 food insecure households received support.

“We said we’ll put the city in a healthy financial position and we did. As we reach for the end of the term of office, we can safely say we’ve indeed established a solid financial foundation. The city is in good hands. The positive feedback from rating agencies, investors and Joburg residents is that the city is delivering,” said Makhubo.

–Mongadi Mafata