Budget 2022/23
The 2022/23 Budget was approved at the end of May 2022 and is geared towards maintaining financial stability while advancing service delivery and driving critical infrastructure investment.
Read more: City of Tshwane 2022/23
City of Tshwane’s vision
To become a prosperous capital city through fairness, freedom and opportunity
The vision of the City capitalises on Tshwane’s position as South Africa’s capital of opportunity and is embedded in the values of fairness, freedom and opportunity.
The 2022/23 Budget represents the collective strategic priorities of the City of Tshwane multiparty coalition government.
The ten strategic focus areas to develop Tshwane and fast-track service delivery are as follows:
1. Prioritise the electrical grid and water infrastructure
2. Provide stringent financial management and oversight
3. Be a business-friendly City that promotes employment and economic growth
4. Enhance City safety, security and emergency services
5. Maintain a clean and protected natural environment
6. Maintain and expand road infrastructure and public transportation
7. Be a caring City that supports the vulnerable and provides social relief
8. Modernise and digitise City processes
9. Provide a professional public service that drives accountability and transparency
10. Create a healthy and vibrant city
The City’s multiparty coalition government consists of the Democratic Alliance, ActionSA, Freedom Front Plus, African Christian Democratic Party, Inkatha Freedom Party and the Congress of the People.
The City approved a total budget of R44,9 billion for the 2022/23 financial year. The operating budget is R42,1 billion and the capital budget is R2,8 billion.
- The capital budget deals mainly with investment in infrastructure (such as constructing roads, the electricity distribution network and reservoirs, and upgrading community facilities).
- The operating budget deals with the day-to-day operations of the City to ensure delivery of services to all communities
Tariff increases
Water
A network availability charge for all properties irrespective of usage will be implemented. The network availability charge is equal to the first 9 kl charge for residential properties, which will cover the bulk cost and part of the operating costs.
The consumptive charges will increase by 9% on average.
Registered indigents and residents with a property value of R150 000 or less are exempted from the network availability charge.
12 kl of water per 30-day period will again be granted free of charge to registered indigent households. It should further be noted that free water is also supplied to informal areas by water tankers and standpipes.
The 9% water tariff increase is summarised as follows:
Sanitation
Sanitation charges are calculated according to the percentage of water discharged as indicated in the table below:
Comparison between current sanitation charges and increases
Registered indigents and residents with a property value of R150 000 or less are exempted from the network availability charge.
Electricity
The tariff increase for domestic, commercial and industrial customers is 7,47% in line with the National Energy Regulator of South Africa’s guideline for municipalities.
The tariff structure regarding households provides for inclining block tariffs. Registered indigents are granted 100 kWh free of charge.
The proposed sliding scale tariffs for the 2022/23 financial year that apply to households are as follows:
Refuse removal
A tariff increase of 6% for 2022/23 is proposed to render a stable refuse removal service to all areas.
Refuse removal charges are based on the volume of refuse removed (container size) per week.
Property rates
The first R15 000 of the market value of all residential properties is legislatively impermissible for the charging of property rates, and a further valuation reduction of R135 000 is granted by the City for charging property rates. All residential properties are thus not charged any property rates on the first R150 000 of the value and registered indigents pay no property rates. Furthermore, the social package is extended to all properties valued at R150 000 and below.
The residential tariff is the baseline tariff, which determines the ratios of some of the other tariffs. The rate ratio of residential to agricultural and public benefit organisations is legislatively determined to be 1:0,25.Based on a 6% increase from 1 July 2022, calculations can be done as follows:
Operating programmes
The following are some of the programmes accommodated within the operational budget:
- Bulk purchases: Electricity – R12,1 billion
- Bulk purchases: Rand Water – R3,5 billion
- Centurion Lake (maintenance) – R25 million
- Community development (food bank) – R4,8 million
- Drug and substance abuse – R33,8 million
- Electricity disconnections – R27,5 million
- Electricity main supply and electricity reticulation (repairs and maintenance) – R160,9 million
- Electricity reticulation and power stations (repairs and maintenance) – R83,1 million
- Eskom connections – R5,2 million
- Expanded Public Works Programme initiatives – R70 million
- Forensic audit – R28 million
- Household refuse removal – R745,1 million
- Housing top structures (Human Settlements Development Grant) – R34,8 million
- Inner city (household refuse removal) – R10,4 million
- Local economic development and SMME initiatives – R5,7 million
- Market infrastructure repairs and maintenance – R8,4 million
- Prevention of illegal land invasion – R31,6 million
- Rental of plant and equipment – R43,6 million
- Repairs and maintenance of clinics – R10,8 million
- Repairs and maintenance of infrastructure and facilities – R352,9 million
- Repairs and maintenance of resorts, dumping sites and nature reserves – R58,1 million
- Revenue enhancement: Debt collection – R148 million
- Sanitation chemical toilets – R37,5 million
- Sinkholes – R29,6 million
- Waste water purification – R73,8 million
- Water purification works – R13,5 million
- Water tankers (rudimentary services) – R291,7 million
- Wi-Fi – R23,8 million
Key capital projects
Some of the main projects and key focus areas of the budget and Integrated Development Plan to be addressed in 2022/23 include the following:
- Asset Protection Unit: Policing equipment – R1 million
- Bronkhorstbaai: Refurbish and upgrade water purification plant – R35 million
- Bus Rapid Transport infrastructure – R269,7 million
- Cable theft technology – R10 million
- Construction of 264 social housing units: Sunnyside– R8,5 million
- Construction of 607 social housing units: Timberlands – R38 million
- Construction of roads and storm water – R120,6 million
- Detail design and bulk infrastructure: Chantelle – R101 million
- Detail design and internal reticulation: Townlands – R85,2 million
- Electricity for All programme – R137 million
- Internal roads: Northern areas – R51 million
- Marabastad informal traders formalisation – R7 million
- New bulk electricity infrastructure – R101 million
- New Lusaka Clinic – R49 million
- Prepaid electricity meters – R57 million
- Purchase books, book security system, furniture and equipment (community libraries) – R14,5 million
- Purification plant upgrades – R36,1 million
- Redevelop hostels: Mamelodi – R3 million
- Redevelop hostels: Saulsville – R3 million
- Refurbish subtransmission electrical infrastructure – R114 million
- Refurbish water networks and address backlogs – R97 million
- Replace worn-out water network pipes – R75 million
- Replace, upgrade and construct waste water treatment works facilities – R146,8 million
- Services for township developments – R36,9 million
- Sewer reticulation and toilets: Ekangala Block A to F– R59 million
- Sewer reticulation: Kudube Unit 5 – R38 million
- Tshwane Automotive SEZ Phase 1 bulk infrastructure roll-out – R113 million
- Tshwane Public Lighting Programme – R13 million
- Tsosoloso Programme (upgrading roads in Saulsville) – R10,2 million
- Upgrading and extension of market facilities – R10 million
- Upgrading Caledonian Stadium – R25 million
- Upgrading of road from gravel to tar in Ekangala (Ward 102, 103, 104 and 105) – R13,2 million
- Upgrading Refilwe Stadium – R32 million
- Water conservation and demand management – R90 million
