Page Content
2009-08-20: City looking at plans to manage revenue and spending priorities
THE City of Johannesburg is City is embarking on a communication campaign with major creditors in the light of the global economic downturn. However, the City is committed to meet its obligations to service providers and financial institutions.
The slowdown in economic activity has affected governments and institutions across the world. Revenue is down as residents and consumers cut down on consumption and this resulting in a reduced demand for key services such as electricity and water.
The downturn came at a time when the City had taken on a number of extraordinary obligations in terms of infrastructure development and capital projects. Among these flagship projects are the preparations for the 2010 Soccer World Cup, the introduction of the Bus Rapid Transit system, the refurbishment of ageing infrastructure and the provision of essential services to a rapidly growing population.
Johannesburg is taking steps to address this trend by looking more closely at the management of its revenue streams as well as a thorough assessment of its spending priorities.
A report on this review process will be presented to the Council at its August meeting and steps will be introduced to manage revenue and expenditure in the current climate.
The City, however, remains committed to meet its obligations towards financial institutions, service providers and contractors. An example of this are the arrangements made with Eskom on the settlement of an outstanding account.
The City is also engaging its major contractors responsible for essential projects to ensure that payments are made in terms of agreements.
Issued by:
Gabu Tugwana
Communication Director
Public Liaison Department
City of Johannesburg
Tel: 011 407-7162
Cell: 0824955673
