WATCH LIVE | 2026/27 Budget Speech delivered by Exec. Dep. Mayor & Finance MMC, Cllr Loyiso Masuku

追加: 2026-05-27

[00:00:06]Good morning everyone. It is hereby notified that the 37th ordinary meeting which is the budget speech of the city of Johannesburg municipality will be held on Wednesday the 27th of May 2026 at 12:30 followed by the budget speech debate and consideration of reports on Thursday which is the 28th of May 2026 at 10:00 a.m. at the constant Konibapella Council Chamber at the Metropolitan Center in Brown Fontaine. We starting off with the opening and acknowledgements by the speaker.

[00:00:39]>> Councelor Kon, I saw your hand. Was it a point of order on the STC?

[00:00:45]>> No, no, no, Madam Speaker. I just wanted to address you on a matter that I think you need to follow up. Myself and MMC Mabaso have got private security over and above the single uh security uh protection that we have. Every time we come with our private security, we are told that they have to park outside.

[00:01:07]But a civilian, a civilian, Helen Zel, a civilian, >> private security is allowed to come inside our premises. They must go out.

[00:01:17]Madam Speaker, you need to deal with that. Helen Zil is a civilian.

[00:01:21]>> Thank you.

[00:01:21]>> She's a civilian. She's nobody.

[00:01:23]>> Thank you, councelor.

[00:01:24]>> She's nobody in the bigger scheme of things.

[00:01:26]>> Thank you, MMC.

[00:01:27]>> She's no one. She's nothing in the bigger scheme of things. Thank you very much.

[00:01:30]>> Thank you, sir. and this thing of her and this thing of her accessing our buildings here, it needs to be dealt with. She's she's nothing in the bigger scheme of things. Thank you very much, >> colleagues, councelor D Rocha. Councelor Drocha, would you want me to remove you?

[00:01:53]>> Thank you. Can we stop, please?

[00:01:58]I've allowed the counselor to speak.

[00:02:04]Colleagues, >> Council Councelor Avances Smith, are you responding to what the MMC has said?

[00:02:12]Because I'm going to rule on it.

[00:02:16]I don't need a response. I want to rule on it. I don't need a response.

[00:02:23]Counselors, I will I will deal with the issue. MMC and all other counselors I will deal with the issue. I know yourself and MMC Mabaso has private security because of the threats but I will deal with it uh as per the the council council I've ruled on this. I don't think we need to have a debate on this.

[00:02:50]>> Yeah, please write to me. Thank you colleagues. colleagues, all of us, we need to gather debate by 12:30 and it's 12:31.

[00:03:03]Executive Mayor of the City of Johannesburg, Councelor Silo Dada Morero in Absentia, Deputy Executive Mayor, who's also the MMC of finance, councelor Loiso Masuku, the whoop of council, councelor Kazamula Chahuk, chair of chairs, council of Wani Marma, all political party leaders and whoops, members of the mayoral committee, committee chairpersons of section 79 committees fellow councilors the city manager Dr. Floyd Brink secretary to council Mr. And Kobinga, officials of the city of Johannesburg, most importantly, residents of the city of Johannesburg, members of the media present, ladies and gentlemen, I welcome you all to the 37th ordinary council meeting of the city of Johannesburg municipality, but also councilors, please join me to further acknowledge the following guests. Honorable Pyaza Lusufi who is the Kaoang Premier. Honorable Bandlay Masuku Khaoang MPL Mr. Sasa Bona Mang the PMC Chairperson Mr. Emp Florenza Lightning Mr. Kumar Murugan Phillips SA Uba Udabazite Kumalo and his delegation Amatungua Royal Kingdom leaders OF ALL POLITICAL PARTIES represented in the chamber junior counselors junior student council you are all welcome to this sitting of our budget. I thank you.

[00:05:07]>> And we now proceed uh with applications for leave of absence.

[00:05:12]>> Colleagues, we have the following leave of absence. Councelor R. Harris, a late arrival. Councelor N. Mesi, family bereiement. We all know that the counselor has lost her mom. Uh, are there any further apologies from political parties? Can I see hands while the DA has two hands up?

[00:05:37]Councelor Masera.

[00:05:44]>> Good afternoon speaker and the colleagues. Thank you very much. Uh, speaker, I've got the following LOAs for DA counselors. Councelor Morin Ni ill health. Councelor Andrew Stewart will leave early. Councelor Michael Kryton party business. Councelor Mark Fand is in court today. Councelor Seu Matubani party business. Can councelor Linda Shackleford ill health. Lex Mazibuko party business. Mi party business. Um, councelor Uba Camela, party business.

[00:06:21]Councelor Mulani, private business. Councelor Florence Roberts, il health. Councelor Gary Ramaru, party business.

[00:06:33]Um, councelor Neon Peterson, private business. Councelor Michael Kryton, uh, party business. Councelor Stuart Morice, party business. Councelor Sean Chris party business councelor Laratum Pu Ill Health and the following three councilors will leave it too that is councelor Tarl Mayers councelor Fay Shame and councelor Rashid Landis. Thank you so much speaker.

[00:07:04]>> Councelor Safumba your hand was up.

[00:07:08]>> Thank you very much speaker. Um you acknowledged other leaders of uh other parties. May you kindly also acknowledge the presence of Helen Zilla who means something to us.

[00:07:18]>> Thank you. Ex >> councelor Safumba.

[00:07:24]Councelor Safumba. It works this way.

[00:07:27]When political parties have guests, they ask us to recognize the people that are in the gallery. Thank you so much, Councelor. Um, Ziggbe.

[00:07:43]Good afternoon, speaker. Councelor Guamanda um party business. Thank you.

[00:07:48]>> Thank you so much, Councelor Makuba.

[00:07:53]>> Thank you, speaker. For the IFP, it's councelor Nbe ill Health. Thank you, councelor. Councelor um Mo Mas Moape, you If it's not working, use the other mic.

[00:08:18]Thank you, speaker. Good day, counselors from the EFF. It's MMC GMA, party business. Councelor Makafula party business ill health councelorubani party business councelor Sani private business councelor Mukasi family commitment council lauro ill health the following councelor's request to leave at half one if we are not finished speaker councelor mapp and councel bambala thank you thank you councelor councela thank you madam speaker on The ANC we have Canela Mutupi and Canela Maka due to ill health. Thank you.

[00:09:01]>> Thank you so much councelor Sami.

[00:09:04]>> Good afternoon madam speaker for the patriotic alliance councelor caline family bereiement councelor ponsmbbe and councelor May is running late. Thank you.

[00:09:14]>> Thank you ma'am.

[00:09:16]Are these apologies noted?

[00:09:20]Thank you so much.

[00:09:23]We now proceed to the budget speech.

[00:09:44]Uh, Deputy Executive Mayor MMC Masuku, can you ascend to the podium to present the budget speech?

[00:10:29]Before you before you start, uh, deputy executive mayor, I would ask all the caucus leaders to ensure that your members are seated.

[00:10:59]and that we have no disruption.

[00:11:03]And those caucus leaders that I've spoken to, you know exactly what I'm saying. So, please, thank you, executive deputy mayor, MMC of Finance.

[00:11:17]Thank you very much. Um, Madame Speaker, uh, Executive Mayor Councelor Dada Morero, the premier of Koeng, um, Mr. Paza Alis Sufi, MC's present, and members of the provincial legislature, in particular, the chairperson of, uh, community safety, my husband, Dr. Aband Masuku, members of the meal committee who we have had the pleasure to serve with in this term. leaders from Sala, the chair of chairs, councelor Aldula Marma, the whip of council, uh, Kazamula Chawuk, chairpersons of committee, fellow counselors, the political management committee, chairperson of the ANC government of local unity and regional secretary of the ANC, Comrade Sasabona Mangan, leaders of political party, the city manager, Dr. Floyd Brink, group chief financial officer, Mr. Deu Moraka, senior managers and officials of council, business leaders, members of the media, residents of Johannesburg, comrades and pat and compatriots. Good afternoon, in.

[00:12:52]It is a great honor to table the budget for 2026 2027 medium term for the city of Johannesburg as delegated by the executive mayor councelor Dada Morero.

[00:13:07]The city of Johannesburg is a city that carries the hopes of millions, the weight of history and the expectations of South Africa.

[00:13:17]Johannesburg is where a young person from Limpo arrives with a bag and a dream. Where a young mother from Guanongo Quesad braves the bright city lights to earn a living for her children. Where sentence financial towers stand above communities still waiting for the full promise of democracy.

[00:13:44]Johannesburg is a micros of South Africa that is riddled with inequality and underbuckling under pressure. But it remains a city of resilience, work, struggle, ambition and hope. Our responsibility is to ensure that this hope is not betrayed by poor planning, defective governance and infrastructure collapse. This budget must be an economic instrument to support growth, expand access to service and enable investment and maintain existing infrastructure whilst investing in new services.

[00:14:23]Johannesburg is the heart economic heartbeat of South Africa. Home to approximately 5.9 million people in um 2.2.9 2.9 million households across the seven regions, contributing approximately 15% to the GDP um of our nation. The future of Johannesburg is not only a local issue. It is a national, economic and democratic imperative and I dare say, Madam Speaker, an international matter. The budget we present today represents the last financial account and budget for this political term. It will speak honestly about the journey we have traveled, the pressures we face and the Johannesburg we are determined to lead back to becoming a thriving worldclass African city. Our theme as presented for the state of the city address was foundation for the future. Your city, our city, Mr. the mayor. Our budget follows this theme directly by building Johannesburg together, investing today, securing tomorrow. It means we must build together because no government can rebuild Johannesburg alone. We must invest today because deferred investment because becomes tomorrow's crisis. we must secure tomorrow because this budget is for the city and that our children will inherit. In this budget, we choose responsibility over slogan. We choose repair over decline. We choose investment over neglect. We choose discipline over drift. This year carries deep historic resonance. We celebrate the 30th anniversary of our constitution, the 50th remembrance of the June 1976 student uprising, and the 70th anniversary of the 1956 women's march led by Mama Lilian Mama Sophie Dubrain, Merahima Musa, Mama Alpetina Cisuli, and Mama Helen Joseph and those were women of fortitude who we must always remember that we must never day fail. It is because of their sacrifices that South Africans will uh exercise the democratic right to vote in the upcoming local government elections on the 4th of November. Accordingly, this moment concerns more than figures on a page. It concerns the record we present, the values we uphold, and the future we are determined to build. An honest reflection, Madam Speaker, is what is going to be required in this moment. We must resist the temptation to speak only in victories and equally resist speaking only in crisis. Both would be dishonest.

[00:17:22]Therefore, where we have urged and felt short, we ask our residents of Johannesburg to forgive us. We recommmit to do better and serve with urgency.

[00:17:33]where we have made strides to uplifting our communities. We urge you residents or and business and community members, academia, youth, women, faith-based organization, the LGBTQIA+ community, the arts, the sportsing fraternity, the pe people with disability, civil society to continue joining with us because you attended all the IDP sessions and today we will present a reflection of your submissions in the IDP processes.

[00:18:08]Johannesburg is not a failed city. It is a city under pressure pressure. Service coverage remains significant. 99.3% of residents have access to water. 96% enjoy access to dignified sanitation.

[00:18:26]92% have access to electricity and 87% are serviced by our fuse removal services. These numbers reflect the deliberate efforts and I repeat these numbers reflect the deliberate efforts of successive ANC administrations since 1996 to improve the lives of residents and expand services in an inclusive and transformative way. They reflect the successful equitable acqu allocation of resources and commitment to transform and human dignity. They also tell us that our task is to protect, maintain and modernize the foundation. Ours is to guarantee reliable and efficient delivery of services. A household may be connected to water, but if pipes repeatedly burst, dignity is interrupted. A home connected to electricity still suffers if the network is unstable. A road still exists even when port holes um are dangerous but the infrastructure must be maintained and fixed. Revenue collection and institutional reform are therefore are at the center of this budget.

[00:19:38]We built this foundation with the intention and commitment. Now our task is to protect what we've built, repair what has been worn out and invest further in what our people deserve.

[00:19:51]The difficult truth is that Johannesburg's combined backlog is estimated at over 220 billion.

[00:20:00]Non-revenue water losses stand at 44.7% and electricity losses at 27%.

[00:20:09]No honest budget speech can avoid these facts.

[00:20:13]Johannesburg cannot budget its way out of a 220 billion infrastructure backlog through municipal resources alone. We must fund what is urgent, protect what is essential, leverage what is possible and partner where our own resources fall short. For us to achieve this, the above, we must be able to manage every scent diligently and ensure accountability across all levels. We must exercise in word and in practice a zillot tolerance on corruption and uh maladministration as clearly articulated by the executive mayor in the state of the city address.

[00:21:02]The city continues to operate within a difficult social economic environment, global uncertainty, geopolitical tensions, volatile fuel prices and domestic infrastructure challenges have increased. Pressure on municipal consumers and have strained our revenue base. Despite these challenges, Johannesburg remains the economic engine of South Africa with and encouraging over recovery through tourism, retail, commercial property and growing investment in renewable energy and digital infrastructure.

[00:21:36]Cities across South Africa face widespread infrastructure challenges, aging assets and persistent underinvestment.

[00:21:44]Rapid migration resulting in increased and above projection demands on services is a reality and has placed excessive pressure on availability of resources.

[00:21:56]National Treasury has responded through grant reforms including per performance-based incentives for metropolic uh municipalities under the metro trading services reform program.

[00:22:10]The city's own revenue base remains um under pressure following benchmarking engagements with national treasury. The projected revenue collection rate has been adjusted from 88.6% to 86% in line with historical performance. Every rand lost through illegal connections, meter tempering, billing weaknesses, non-payment and water losses is a rand that cannot repair Johannesburg. We have put in place several revenue collection uh strategies namely automation of revenue management system, customer related data connections with registered bureaus, walking the floor program to improve customer relations and restore public uh perception of the city that cares while creating visibility, centralize query resolution and disconnections and also ensure that we go as we walk the floor.

[00:23:06]As you would have seen this morning, the executive mayor and administrators of the city of Johannesburg as a prelude to this budget were on the ground making sure we deal decisively with those who steal uh revenue from the city.

[00:23:23]Madame Speaker, these interventions are aimed at arresting revenue leakage and protecting the city's financial integrity and the ability to deliver critical services. Madam Speaker, allow me to now table before council the budget for the 2026 2027 financial year.

[00:23:42]Our operating revenue is at 90.4 billion.

[00:23:47]Operating expenditure 88.3 billion, projected surplus 2.1 billion, capital budget 8.8 8 billion which will rise to 2.5 2.3 billion over the medium term. Madame speaker, we are tableabling a total budget of 97.1 billion for the 2026 27 financial year for the residents of Johannesburg.

[00:24:24]Our key revenue drivers are electricity at 27.8 billion, water and wastewater 21.5 billion, property rates 18.8 billion, and refuse removal 3.6 billion.

[00:24:42]Every rand in this budget reflects our commitment to building Johannesburg together. investing today, securing tomorrow. The metro trading reforms is one of the single most consequent con consequential institutional transformation in Johannesburg's postdemocratic municipal history which is going to directly shape our major budget allocation.

[00:25:08]These di these reforms are necessary because we have diagnosed and the diagnosis is clear. Johannesburg's three core trading services which is electricity uh which we know it's under city power water and sanitation under job water and waste management under pick it up have been weakened by split accountability declining revenue collection insufficient capital investment governance failures and the non-revenue water losses which exceed 40% which I spoke about earlier electricity distribution losses stand at 27% and the combination infrastructure renewal backlog across Jober city power Joberg road agency exceeds 185 billion without meaningful institutional reform capital investment alone cannot achieve this and we have to work together to ensure sustainable service delivery. The metro trading services reform were developed in collaboration with uh national treasury and were formally launched uh through a turnaround strategy strategy which was approved by the city of Jober council on the 31st of July 2024.

[00:26:28]It addressed it addresses five conditions. The single point management accountability, revenue optimization and financial turnaround, institutional and governance reforms, increasing infrastructure investment through new financing mechanisms, including the uh financing incentive grant, which is up to 54 billion in grant for over six years for the eight metropolitan municipalities that demonstrate reform and performance-based incentives tied to a performance improvement action action plan.

[00:27:05]The metro trading services reform has direct and specific implications for this particular budget. Ring fencing of trading services revenue is progressively required. Changing the city's cross subsidi subsidization model loan funded capital projects must demonstrate improved revenue generation or reduced operational losses. National Treasury has made available up to 27.7 billion in performance linked incentive grants over the medium-term with potential to unlock over a 100red billion in combined infrastructure investment. But these grants are contingent on demonstration of reform not merely on submission.

[00:27:53]Madame Speaker, tariff setting is one of the most consequential decisions this that any council can take. Our policy is primised on three principles.

[00:28:06]Affordability of for residents, competitiveness and investment destination and cost recovery sufficient to maintain infrastructure.

[00:28:17]set tariffs um that are too low cannot sustain infrastructure.

[00:28:23]If we set them too high, the residents cannot afford the services. Then non-payment rises and the revenue base then ends up collapsing. Getting this balance right is the discipline of responsible municipal finance. Madame Speaker, we do not take tariffs lightly, but neither have we forgotten that they we have the most vulnerable. The first 300,000 of residential property value remains exempt from rates. Pensioners whose gross monthly household income is lower than 13 um.519 and the property value up to 1.5 million, they receive a 100% rebate.

[00:29:06]Every household receives the first 6 kil of water free of charge.

[00:29:12]Indigent households of the expanded social package receive 15 kil of water and 50 kil hours of free electricity each month. More than 145,000 households are now registered on this social expanded social package up to 124,000 in 2015. This is a demonstration of a caring ANC government of local unity for 2026 27 tariff increases are driven primarily by the administr that by the cost administrator and the input cost increase from escom and rent water and they are largely outside the city's control because they are also compounded by uh inflation and the operating pressure.

[00:29:59]Electricity tariffs. City Power proposes an overall average tariff increase of 9.1%.

[00:30:07]This is consistent with ESCOM's bulk purchase cost increase following the nurs's approval on the 4th of March 4th of March 2026.

[00:30:17]By limiting increases to residential customers below the 9.1 rate, the effective average household increase is brought down to 8.63%.

[00:30:28]City P's cost of supply study confirms that reducing energy losses from approximately 27% to 15% would alone generate an additional revenue of up to 3.5 billion without further tariff increase. This is why the trading uh services reforms program I spoke about earlier is central to the city's um to city p's financial sustainability.

[00:30:57]on affordability. The residential prepaid low tariff for for registered indigent customers remains exempt from services and the network capacity charges. City P's average indigen tariff at 350 kilowatts per hour per month is lower than ESCOM. A 2% SH charge applies to businesses and law and large power users in order to support the network and sustain the network.

[00:31:28]On water and sanitation tariffs, Johannesburg waters increases are driven by the 11% bulk purchase cost increase from Rand water. Combined uh water and waste revenue is projected at 21.5 billion. Water tariffs use an increased block model and the first six kilometers per month is free.

[00:31:52]Sanitation tariffs on multi-dwelling units with earth size of 300 to a,000 square meters have 0% increase providing interim relief while alternative structure and we restructure a model for 2027 2028 for indigent households through the expanded social package free water allocation as mentioned earlier and a 100% rebate on sanitation charges.

[00:32:22]A water demand management levy of 10774 cents per month domestic connection covers the fixed network and availability cost. Pick it up tariffs increased by 6.2% below the increase in water and electricity reflecting the mandate to keep waste manage management accessible while advancing financial sustainability.

[00:32:49]Property rates increased by 3.6%.

[00:32:53]This is the lowest increase of any service charge deliberately set to balance budgetary requirements with affordability.

[00:33:02]The rebate structure projects p pensionize persons with disabilities, child- headed households and other vulnerable groups. Every rand of the rates rebate granted is a deliberate investments in the well-being of our residents and a balanced affordable tariffs are how we invest today in a city that works for everyone to together.

[00:33:26]Madame speaker alongside this budget we are tableabling a financial turnaround framework which will need to be approved by council. Financial recovery alone will not uh be achieved through colle revenue collection alone. It requires simultaneous action and expenditure control, trading services reform, audit remediation, entity stabilization, capital discipline, labor management stability and stronger oversight.

[00:34:06]The framework is organized around six pillars. Financial recovery, revenue enhancement, expenditure containment, creditor and liquidity reform, governance and compliance and labor stability. The framework is supported by the hybrid model of sweeping arrangements reform and a phased revenue sharing agreement commencing with job water on the 1st of July 2026.

[00:34:33]The immediate test in the immediate test is implementation discipline.

[00:34:40]Johannesburg has significant plans and diagnostic reports. The problem is not the absence of plans but the persistent failure to convert them into measurable outcomes. The city manager as the accounting officer in terms of the uh municipal systems act and manage and finance management act must and should assist in leading an integrated implementation model and align departments and entities service delivery priorities through measurable outcomes monthly reporting with the CEOs MDs and all department head herds implementing in their respective areas.

[00:35:21]It is of no use if we continue to have the plans and work but then the implementation falls short.

[00:35:32]Council must therefore mandate the city manager through a city-led implementation architecture with a single tracker reporting against measurable dashboard and the agreements of performance aligned to the framework.

[00:35:48]Council must continue to support efforts by the Khao provincial government cockta turnaround strategy which was launched by the premier overseen by MC Mamamulo as it is a as it complements the financial turnaround framework we are tableabling today. Madame speaker there can be no service delivery without revenue. There can be no infrastructure recovery without collaboration. There can be no investment without financial credibility. This budget strengthens revenue recovery through the revenue war room enforcement in line with section 118 in terms of how we seek to move. The debt relief program remains an important intervention for residents genuinely unable to pay. But we must be honest, a city cannot function if those who can afford to pay refuse to pay. Non-payment weakens service delay delivery. It delays maintenance and it punishes the poor. The social contract is clear. The city must bill correctly, deliver services and respond to complaints and residents and businesses and make sure that all government departments national and provincial they pay the city. This is what it means to build Johannesburg together. While we are taking decisive action to strengthen the city's finances, we are equally committed to ensuring that our recovery efforts remain centered and compassionate.

[00:37:24]Financial sustainability cannot come at the expense of those residents and institutions which demonstrate that they are willing to pay, but they need historic challenges resolved. To date, more than 9,000 residents, faith-based organizations, small businesses and enterprises, NOS's have already applied for our debt relief program. We are encouraged by those who have applied and these qualifying individuals are an indication that the organization stands to benefit from meaningful financial relief. these organizations. And as part of this intervention, the city anticipates implementing the write off of up to 50% of debt on qualifying accounts across Johannesburg before the 30th of June 2026.

[00:38:20]This program is intended not only to alleviate financial burdens but also to restore accounts to being manageable and create a sustainable foundation for future revenue collection. The program remains open and we encourage uh residents, businesses, faith-based organizations and institutions, pensioners to come forward and apply for the debt rehabilitation program which will close at the end of November 2026.

[00:38:52]to get. We want to work with you h in our communities because rebuilding the financial health of our city is a shared responsibility and a collective journey.

[00:39:03]Together through disciplined person partnerships and shared commitment, we can place our city towards a path of recovery.

[00:39:12]Madame Speaker, our workforce is our most valuable resource and must be adequately compensated.

[00:39:22]Equally, we want a professional workforce, reliable, efficient, and productive in service of our people. The politically facilitated agreement budget allocation addresses historic legacy salary disparities. The ANC led government of local unity has demonstrated its commitment to ensuring that workers receive fair compensation with the intention of accelerating service delivery, strengthen revenue collection and improve interface through a motivated and a skilled workforce workforce. Madame Speaker, much has been said about the PFA and the strong anti-workforce sentiments have found itself amongst opposition benches with the responsibility of incumbency that is upon us. We have and we will always act with reason, diligence and accountability.

[00:40:24]In this regard, as led by the executive mayor, we will continue our engagements with national treasury and minister in Gondoguana, we are committed to ensure that we maintain fiscal discipline and integrity of the city whilst meeting our obligations which were approved by council.

[00:40:48]Financial recovery is not an end in itself. It is what makes it possible to keep building Johannesburg together.

[00:40:56]Tradeoffs and discipline of a funded budget and this council deserves honesty about them and the structural choices embedded in this budget. Madame speaker, not every request can be possibly funded. Not every political priority can be accommodated.

[00:41:18]And I want to name the key tradeoffs plainly.

[00:41:22]Conditionality versus political priority projects. The the capital program draws approximately 5 billion national uh conditional grants. The urban uh um settlement development grant, public transport network grant, urban development financing grant, urban informal settlement uh partnership.

[00:41:44]uh each of these they are ringfest for specific purposes and this is the discipline and the understanding to ensure that what when uh something is ringfest it is utilized specifically for that they cannot be redirected to any other function at an infrastructure word level where community requests fall outside grant definitions projects can only be funded from the city's own cash or borrowing both severely constrained with the cash cost coverage ratio of only 9.8 days against a benchmark of 30 to 90 days.

[00:42:25]The rule is simple. Every capital commitment must have a named available and compliant funding source before it can enter the program.

[00:42:37]Tradeoff two is the loans that we have which account to 3.5 billion which is 39.9% of the capital budget. Every rent borrowed must be serviced from operating revenue. Interest and loans redemption represent approximately 7% of the total operating expenditure within the acceptable benchmark, but only if our borrowing remains disciplined. Under the Metro Trading Services reform, loan funded projects in trading services areas must demonstrate improved revenue generation or reduced operational losses.

[00:43:19]Trade of three ring fencing versus cross subsidi subsidization.

[00:43:25]For years, trading service supplasses have cross subsidized roads, public safety administration and entity subsidies. The metro trading services reform progressely progressively requires that we end this model.

[00:43:41]non-trading functions must increasely be funded from property rates, the equitable share and our own source of revenue. This structural shift intensifies in this uh medium-term period. The deliberate decision to protect and grow the service uh sustainable service cluster allocation by 9.7% is precisely to stabilize the revenue base on which all other services depend.

[00:44:11]The last trade-off being escom and rentwater creditor settlements which impose a capital direct constraint on new capital. Every rent collected to creditor repayments is unavailable for new infrastructure. This is the right tradeoff. Unresolved obligations would would damage the city's credit standing, risk supply interruptions, and undermine investor confidence. Some communities may not see new capital investments now because the city is honoring obligations that protect the system that serve them daily. This is an honest but a difficult message and national treasuries funding assessment requires adjustment through natural attrition of salary savings, customer collection level alignment and contracted services reductions. These are not discretionary choices. They are the conditions of a funded budget. They are the conditions that enable us to say that we are presenting a funded budget for the city of Johannesburg.

[00:45:19]Every commitment has a funding source.

[00:45:22]Every project has a compliant justification.

[00:45:26]This is what a funded budget looks like.

[00:45:29]discipline today is the investment that makes tomorrow possible. This is how we build Johannesburg together.

[00:45:39]Madame Speaker, the m the executive mayor in the state of the city was very clear.

[00:45:46]The city of Johannesburg will not win the battle of backlogs alone. The scale of our infrastructure challenges is going to require innovating funal models.

[00:45:59]This budget supports all these funding um alternative funding models through multi- uh lateral development banks, development finance institutions, national grants, provincial partnerships, public private partnerships as well as um private sector co-investment. Critically, the budget must also show commitment to maintenance of repairs and um of the existing infrastructure and must align to national treasuries guidelines on percentage of maintenance expenditure against revenue. As the city of Jober, we are increasing the budget for maintenance and repairs from 7% to 8% in to ensure that we have adequate resources towards critical day-to-day maintenance as well as uh deal with our water and sanitation in line with the trading services reform efforts. In the state of the city address, the executive mayor recorded 26.6 6 billion in investment that was attracted um and approximately 2 billion in economic activity from the international events including the U20 and G20 on the African continent which was hosted under his leadership and this is a demonstration that Johannesburg is open for tourism.

[00:47:23]This includes 27 billion in the foreign direct investments and 5.4 4 billion Microsoft data center, 7 billion waste to energy partnerships and the 760 million midrand bulk water storage facility. These investments show that Johannesburg is still investable and investor confidence survives on implementation of a stable governance and a city does not invest in uh uh attract investment only by wishing. It is through deliberate programs, international events that I have indicated we hosted.

[00:48:01]It attracts investments by adhering to the highest standard of of good governance and predictability. And lastly, consistent improvements to infrastructure.

[00:48:12]Every partnership forged is a commitment to investing today so that Johannesburg can thrive tomorrow.

[00:48:19]The city power turnaround strategy uh that I spoke about earlier centers on five pillars. Infrastructure investment to rehabilitate the distribution network. Revenue enhancement and billing accuracy. Loss reduction through smart metering and supervisory control and data acquisition upgrades.

[00:48:40]diversification of energy mix through solar independent power producers and small-scale embedded generation and organizational restructuring and positioning of city power as an energy services platform.

[00:48:54]Madame speaker, the budget allocates approximately 28.3 billion in operating expenditure to city power and a capital program of 6.7 billion for the medium term. These resources will support the grid strengthening and strengthen the the the grid. Smart metering, electricity losses, electricity loss reduction, informal settlement electrification, public lighting and embedded generation and renewable energy projects. The city is finalizing the development finance linked to projects as approved by council yesterday, including the recent loan of KFW, which is worth uh 200 uh euros to support city powers infrastructure.

[00:49:43]Similarly, Madame Speaker, the city is engaged with constructive discussions with ESCOM on the current debt and recovery interventions with the support and collaborative efforts from national government um as well as regular regular uhization and working with SALA and regulators and financial institutions.

[00:50:06]Energy reform is not optional. It is central to Johannesburg's economic survival. We welcome the ongoing and uh dialogue between the minister of electricity and energy Dr. Hoseno Ramakopo as well as the ESCOM group CEO um Mr. Dan Morokane, ourselves in the city of Johannesburg led by the executive mayor, we are saying to council and residents, a secure energy f future is at the heart of building Johannesburg together and it starts with the investments that we make today including the intergovernmental relations that we are committed to on water and sanitation on water on waters uh reform.

[00:50:53]Johannesburg water targets non-revenue leak detection and the progressive replacement of the most vulnerable sections of the reticulation network.

[00:51:03]The target for 2627 is to reduce non-revenue water from 2 22 226 to uh below 185 megal liters per year. Every megal liter saved is a megal liter of expensive rand water bulk purchases. The V systems capacity constraints um is um adding urgency. Johannesburg cannot afford to lose 40% of treated water while we source the source system itself is under stress. The budget allocates approximately 21.6 billion in operating expenditure to Johannesburg water with 6.4 4 billion in capital investment over the medium term. Every liter saved, every pipe replaced, these are the investments today that secure tomorrow's water for every household in Johannesburg. A clean city is a dignified city. Residents do not ask for miracles. They ask that the refuse be collected and that illegal dumping be removed. Johannesburg is running out of landfill sites. That is an honest reflection we have to make. This is not a distant problem. It is a it is a structural risk. Pickicket up reform focuses on fleet modernization, progressive closure of the end of the landfill sites and planning for alternative waste treatment. Madame speaker, the operating expenditure allocated is approximately 5.2 2 billion which will support landfill rehabilitation, fleet reliability, waste um diversification as well as um illegal dumping removal as well as um leading programs to comage communities and educate them about the importance of a clean city. A clean city is a dignified city and cleanliness is part of building Johannesburg together.

[00:53:13]on roads, storm water and bridges.

[00:53:16]Every morning you have a masa who leaves so before sunrise to work in Santin.

[00:53:24]When the traffic lights fail, she pays the price. When the roads deteriorate, she pays the price. The cost is not only money. It is time away from children and the stress before work and at times lost income. Apartate special planning still shapes the daily lives of our working people. This budget, Madam Speaker, allocates 1.8 8 billion for roads and storm water operations and 570 million for capital investment supporting road infrastructure and uh resurfacing gravel roads upgrades, bridge rehabilitation, storm water infrastructure, traffic signals, the BRT and the public transport network. A port hole in Johannesburg is not just a port hole. It is a it is an indication and a symptom of maintenance deferred and this budget prior pri prioritizes maintenance and renewal. We no longer treat maintenance as an afterthought. It is the quiet work that prevents collapse. It is the trans it is the reliable transport we are investing in today so that um when we move everyone is able to move and Joberg works. The inner city is the pulse of the city of Joelberg. The state of the city address by the executive mayor identified a pipeline of inner city projects which include the inner city gateway high court precinct walkable network uh flat renewal Florence house hillbro hospital um um Jubet Park job art gallery Jack Mina facility and devilas the inner city uh spend is distributed across Multi votes towards precinct based revitalization, public environment upgrades, building rehabilitation, hijacked building interventions, public lighting by law enforcement, informal trading and partnerships with business and civil society. The rehabilitation of the inner city requires a multi-prong and multidisiplinary approach uh which encompasses all stakeholders.

[00:55:49]Township renewal remains equally central. The budget supports the Orange Farm renewal program, the Jabulani precinct upgrades, the Lufurang mixeduse development, the hostile developments, informal settlement upgrades, transit orientated development and inclusionary housing.

[00:56:11]The state of the city address recorded 9,188 inclusionary rehousing units processed and 1,364 transit oriented development units and major catalystic projects including the Lanzeria Smart City, Lufurang Southern Farms, Riverside mega project and Tangani mega project and these are projects that are going to change the lives of our people.

[00:56:41]The inclusive development of Johannesburg cannot be centered only in the affluent areas. That is why this budget is a is an inclusive budget. Budget that must not only speak about affluent areas. It must be inclusive of Orange Farm, Alexandra, Deep Sloot, Ivory Park, Elorado Park, Lanesia, Sutoto, Anna Dale, Ciptown, Rollerport, Zans, Spray, Rand, and the inner city. This is what an inclusive development and special justice uh justice requires. and rebuilding our inner cities and our communities and our township is special justice made real investing today so that all of them can thrive.

[00:57:35]Madame speaker on safety and law enforcement every evening there is a mother who waits to return home safely.

[00:57:47]Her expectations are clear. She wants working street lights. She wants a safe park. She wants visible law enforcement, emergency services that respond, public spaces where women and children can move without fear. And these is what they deserve and need from a city of Joelberg. This budget speaker allocates 7.2 2 billion towards JMPD visibility by law enforcement, emergency services, CCV uh CCTV and the integrated intelligent police center, public lighting, urban management, inner city enforcement and disaster management. The rule is not of this budget also supports the work to make sure that we deal with cable theft, vandalism because we can no longer normalize it. This budget supports enforcement that is firm, fair, and developmental.

[00:58:53]Madame Speaker, we must also state that our infrastructure is under attack.

[00:59:01]Organized syndicates are destroying millions in infrastructure, targeting traffic signals, electricity transformers, water pumps, uh, pipes and road rails and paving on our sidewalks.

[00:59:15]The scourge of illegal mining in some of our areas on the reef undermines and the structural integrity also is criminality which terrorizes our communities. Our investment in safety and security will immediately deal and arrest these coordinated attacks. We must claw back the significant resources we currently utilize to replace and repair infrastructure uh damaged stolen by criminals. And we we will continue to urge and uh uh work with JMPD to ensure that our central business districts are reclaimed from the tentacles of crime and crime. And this budget allocation makes it easy for us to deal with this particular decay. Safety is the foundation on which everything else is built on. And we can only build Johannesburg together when every resident is secure. The true purpose of government is to improve the lives of our people. This budget, Madame Speaker, places a strong emphasis on community upliftment and inclusive development.

[01:00:27]Free basic services for qualifying households, indigent households, informal settlement upgrading, 2,200 additional households connected to the water and above 3,000 to sanitation.

[01:00:42]Social housing above 2,000 units that are going to be constructed and four identified hosts to be upgraded.

[01:00:52]2,000 new title deeds to be issued in high density residential zones.

[01:01:00]Expanded public works program which will assist with over 12,000 job opportunities for the 2026 2027 financial year.

[01:01:12]social development budget um of um 49 million supporting women, persons with disabilities, children, LGBTQIA plus community and the vulnerable groups, every household uplifted, every job created. No community will be forgotten and no community will be left behind. on good governance and accountability and the clean audit that we speak about and live by. Financial recovery cannot succeed without governance reform.

[01:01:47]Revenue collection without clean administration will fail and without procurement discipline will falter.

[01:01:55]Every reform without consequence management will fail. The budget supports stronger governance through improved audit action plans, consequence management, anti-corruption interventions, internal controls, risks management, supply chain discipline and performance mo monitoring. Madame Speaker, in quoting the executive mayor, he said, "Corruption must not be tolerated and where it occurs, arrests must be made."

[01:02:32]This must not be a ceremonial statement.

[01:02:35]It must be an operating principle. This budget is not only about how much money is allocated. It is about whether the money is spent well. Underspending on capital is not a saving. It is delayed service delivery. It is stealing from the downthroen.

[01:02:59]Poor procurement planning is not um administration. It is and and it must it must be improved in line with the framework that will require approval tomorrow. This is why the city will strengthen capital expenditure, monitoring of projects and uh consequence management and where delivery fails without justification all responsible must be brought to book.

[01:03:26]We will also introduce and institutional and institutionalize a culture of interim financial statements because we want to strengthen good good governance and we appreciate the support that we have received from the auditor general in working towards ensuring that Johannesburg is in good financial states. The city of Johannesburg budget embeds a cost containment primary um preliminary through workforce discipline and operational risks. Employee costs are managed via a 2.5% natural attrition and contracted services are held to just 2.4% growth.

[01:04:11]operational costs to 1.1%.

[01:04:14]Procurement discipline is enforced through the SCM policy. On the revenue and asset side, the budget treats loss reduction as its most powerful cost and containment lever. City power targets electricity losses down to 25% of bulk purchases, meter programs, and prepaid metering rollouts. tackle non-revenue water and illegal connections as well as penalties to create both deterred and cost recovery. Repairs and maintenance are held at 8% of PPE and 40% plus of capital spending goes to asset renewal.

[01:04:54]Both national treasury benchmarks designed to avoid uh far consilia emergency and interventions later.

[01:05:03]Underpinning all of this is an 80% 86% debt collection rate target, active tariff uh reflection reviews as and a formal treasury structural reform program. Good governance is not optional. This is the foundation and which we are building today and together.

[01:05:28]Mr. Mayor, it must be mentioned that our city has faced immense challenges.

[01:05:37]The lack of stability and political ineptitude born out of the 2016 and 2019 calamity of the then Democratic Alliance leadership under the government uh led by the accidental mayor. and again in 2021 to 2023 under the urswwell doctor who turned politician.

[01:06:02]Mr. Mayor, Mr. Mayor, this has left severe entrenched challenges in the system which are yet to be fully ventilated and exposed. I can safely say you have laid the foundation. You have contributed in a very short space of time including your time as MMC finance and for and for that >> and for that Mr. Mayor, we thank you for saving Johannesburg in the short space of time.

[01:06:48]>> Major, may you continue to do the work.

[01:06:59]Madame Speaker, I also wish to take this opportunity to pay tribute to my late comrades Jeff Makubo, Jolim Matongo and Imperane, two of whom served as MMC's for finance and later served as executive mayors.

[01:07:19]May their souls rest in peace.

[01:07:26]These three gentlemen made a significant contribution which is being continued by the current executive mayor. They made a contribution to shaping the development and ad advancement of our great city of Joelberg in pursuit of retaining Johannesburg as a worldclass African city. Coalition governance has brought both opportunities and challenges and the political contestation has at times produced delays and uncertainty.

[01:08:04]Yet the city of Johannesburg continued to function under the ANC government of local unity.

[01:08:14]Clinics have remained open. Emergency personnel have remained on duty. workers continue to serve residents. Even so, the era of coalition governance must not divert our focus on long-term planning in favor of short-term party political gains. We must consistently act in ways that show you care for sustainability and growth. The current coalition has made every effort possible against a consistent push back from the voices of the privileged minorities to ensure we save the people of Johannesburg equitably and with requisite sensitivity to the needs and frustrations and their means. We are a government committed to serving the residents of our uh city and we commit and our actions are informed by our unwavering commitment to justice, redress and progress. Madame Speaker, in conclusion, this 97.1 uh budget is about laying a foundation for the future. A future where infrastructure works, where communities are uplifted, where young people can access opportunity, where government is responsive and and accountable, where Johannesburg once again stands proudly as a worldclass city. The challenges before us remain real, and we did not and have never shied away from them. We have confronted the challenges yet we continue to do the work amidst all of that. But so too it is important that we remember that Johannesburg has always been a city of courage, innovation, and a city of possibility. A city that has never been defeated by its difficulties.

[01:10:12]Through this budget, we commit 8.8 8 billion in capital investment for the 202627 financial year and a 25.3 billion over the medium term. Through this budget, we will protect core services.

[01:10:29]We will strengthen financial discipline.

[01:10:31]We will implement the metro trading services reform that will transform our entities to resilient, accountable and financially sustainable utilities. We will direct 60% of capital to historically marginalized areas. We will set measurable targets and track them publicly. As we approach the government, the local government elections on the 4th of November. We must recommit ourselves to a politics of service rather than division. Residents alone, they know what they need to do.

[01:11:08]Residents want water that is flowing in the taps. They want reservoir builds and the ANC le government of local unity has already started on the program of building reservoirs as you would have seen with the Brixton launch that was done um earlier in the month.

[01:11:29]Madame Speaker, Executive Mayor, when we return after the 2026 local government elections, when we return after the 2026 local government elections in November, we will continue to ensure the stable, compliant, and honestly constructed financial foundation we have led. Madame Speaker, this is the last budget before our residents return to the polls on the 4th of November 2026. They will be asked to choose between two paths and the contrast could not be clearer.

[01:12:16]One path is the path that we offer defined by stability, investment, fiscal discipline, infrastructure renewal and opportunities for young people. a path where the ANC le government of local unity has kept the lights on during the worst period of offload shedding this country has experienced in many years and we have exceeded over 365 days where city power built through working together is stabilized where we stabilize Joberg water where we turn around the Johannesburg road agency where we expand free basic services.

[01:13:03]That is the path residents are going to choose.

[01:13:11]They will not choose the path that is marked by uncertainty that is marked by collapsing coalitions and service disruptions.

[01:13:22]They will not choose a path of people who choose to swim instead of contra problems.

[01:13:31]We have seen that path. We have seen how it undermines service delivery and belittles the genuine needs of our people.

[01:13:42]That path is a bad path that will not happen here provided the residents choose continuity and discipline in the coming elections.

[01:13:55]We believe that a workingclass mother in Alexandra or Sutoto deserves reliable water. That a young person from uh Tabazimi coming here with a bag of dreams deserve a city that works. That a pensioner sitting in Pumlamashi deserves safety and dignity. That is the Johannesburg we are building. That is the Johannesburg on the path of renewal and service to the people. This budget is about building a stronger and a more resilient Johannesburg for the future generations. If we work together, government, business, labor, civil society, faith-based organization, there is no challenge we cannot overcome. This is your city. This is our city. and together we will build the foundation for the future, investing today and securing tomorrow. I thank you Madame Speaker.

[01:14:59]Mr. Mayor, I now present you with the budget book of the city of Johannesburg.

[01:15:22]Open it so we can see there's no money inside.

[01:15:50]Hey, heat.

[01:17:08]Thank you counselors.

[01:17:10]>> Please don't.

[01:17:11]>> Thank you counselors.

[01:17:13]Thank you counselors.

[01:17:17]Thank you counselors.

[01:17:20]>> Thank you so much.

[01:17:24]>> Thank you counselors. Point of order.

[01:17:28]>> Point of order. Madam Speaker, can we be seated?

[01:17:35]>> Can we be seated? Councelor Belinda, point of order on the singing. Thank you.

[01:17:44]Madam Speaker, we are not allowed to bring dangerous weapons into this house.

[01:17:50]Councelor Kun has just started whipping in this house and I want to remind the house I want to remind the singing is there but capacity do law >> councelor Belinda >> you can go councelor Belinda >> are all the other men that's sitting on the other side are they wearing belts No counselor. Counselor.

[01:18:27]>> Counselors. No counselor. Coun MMC. I'm not going to give you a chance. I'm not going to give you a chance.

[01:18:38]Counselor, I'm not giving you I DIDN'T GIVE YOU A CHANCE TO SPEAK. COLLEAGUES, I'm not sure. But counselors, can we continue? I I asked the question if any other man in the room is not wearing a belt please. Thank you.

[01:19:01]Colleagues, colleagues, no counselors. Counselors, please. WE WERE SO PATIENT with the speech.

[01:19:11]Counselors, no. NO, NO, COUNSELOR BELINDA, YOU DON'T do that. I'm going to CONTINUE WHERE COUNCELOR YOU ARE BIASED, SPEAKER. BIAS.

[01:19:22]>> I'm not biased.

[01:19:24]>> I'm not biased.

[01:19:28]>> THANK YOU SO MUCH, MMC Masuku, um, WHO'S ALSO THE DEPUTY executive mayor for presenting THE CITY'S LAST BUDGET SPEECH of the political term of office.

[01:19:43]Councelor, thank you so much once again.

[01:19:46]But as we usually do, you will all be granted an opportunity to comment on the budget speech and consider the reports tomorrow at 10:00 in the council chamber. We have come to the end of our meeting. THANK YOU VERY MUCH councilors and thank you so much to the guests in the gallery for honoring us for this day. to all the media people. THANK YOU SO MUCH. Thank you.

[01:20:22]>> The meeting has been adjourned. You can all go home. Thank you.