1. City of Johannesburg Department of Finance and Economic Development Office of the Budget and Financial Planning Medium Term Budget 2006/2007

2. 22004-05-06 Total Budget for the 2006/07 financial year Total Operating Budget =R17.8 billion Total Capital Budget =R3.2 billion Total Budget for the City = R21 billion

3. 32004-05-06 Total Budget for the 2006/07 financial year

4. 42004-05-06 Sources of Income COJ The City anticipate to raise R17.9 billion, attributed mainly by the following income sources; Electricity charges R3.7 billion Property Rates R3.1 billion Water R3.3 billion Subsidies R3 billion Refuse R600 million Fines and license fees R206 million Interest earned on investment R335 million

5. 52004-05-06 Sources of Income COJ

6. 62004-05-06 How is budget spend The City’s total operating expenditure for 2006/07 is R17.8 billion. The Utilities, Agencies and Corporate Entities make up 55% of the City ‘s total budget. City Power ‘s allocation amounts R3.7 billion Joburg Water account for R3.3 billion Pikitup account for R700 million Joburg Roads Agency account for R424 million City Parks account for R369 million Metrobus account for R352 million

7. 72004-05-06 How is budget spend The core administration makes up 45% of the City’s total operating budget. Finance at R1.6 billion (this includes bad debts, depreciation and debt servicing cost) Metro police account for R839 million Emergency services account for R376 million Housing R473 million Corporate services at R382 million Community development at R496 million Health at R267 million Development Planning and Urban Management at R463 million

8. 82004-05-06 How is budget spend Expenditure per Entity

9. 92004-05-06 Spending per department

10. 102004-05-06 Budget Highlights Establishment of 2010 project office Urban management in the regions Appointment of approximately 25 health care workers Additional 500 Metro Police Officers per annum Establishment of the by-law enforcement unit in JMPD Additional allocation for the maintenance of roads infrastructure Upgrading of ablution facilities The greening of Soweto Additional allocation towards street cleaning and Inner - City operations 100 fire fighters

11. 112004-05-06 Capital Estimates The City will be investing approximately R9 billion over next three years. Capital Estimates for three years Funding Sources 2006/2007 R’000 2007/2008 R’000 2008/2009 R’000 Own Funding2,412,2022,041,2762,000,129 Grant and donations487,717625,652393,870 Municipal Infrastructure Grant293,300338,500296,200 3,193,2193,005,4282,690,200

12. 122004-05-06 Sources of Funding Capex – 2006/2007 The envisaged capital spending is approximately R3.2 billion and will be financed through a combination of borrowing and surplus cash to the tune of R2.4 billion and R781 million from the Consolidated Municipal Infrastructure programme and other provincial and government transfers.

13. 132004-05-06 Capital budget More money will go towards; Electricity infrastructure R713 million Water R726 million Roads R284 million Housing R128 million Development Planning R84 million Community Development R177 million Johannesburg development agency R158 million Transportation R335.6 million

14. 142004-05-06 Capital budget per entity

15. 152004-05-06 Capital budget per Department

16. 162004-05-06 Capital budget per Department

17. 172004-05-06 Proposed Tariff increase Tariffs2006/07 Assessment Rates5.1% Water8.1% Electricity8.2% Refuse Removal5.1% Minor Tariffs5.1%

18. 182004-05-06 Impact of the Tariff increase CurrentProposedIncrease DiepkloofR249.78R273.28R23.50 EldoradoR251R273.28R22.28 Ivory ParkR60.78R66.36R5.58 RandparkridgeR992.47R1 029.12R36.65 SandownR3 292.56R3 451.54R158.98

19. 192004-05-06 Social Packages The City is spending approximately R570 million towards the social package Assessment rates  100% rebate on properties worth less than R20 001  40% remission for pensioners who qualify on properties worth more than R20 001 Water  Free 6 kl per household per month Electricity  Free 50 kwh per household per month (All customers on lifeline)

20. 202004-05-06 Social Packages Service subsidy is available to the following categories of people(refuse collection and sanitation)  Total Family income should not exceed the maximum income threshold which will be equivalent to twice the value of National grant plus R1  The unemployed, orphans, pensioners, HIV/AIDS patients and persons with disability grants, are also catered for. (only applicants who qualify in terms of the policy)

21. 212004-05-06 THANK YOU