The City of Johannesburg says it remains confident that it will generate sufficient revenue to fund its proposed R97.1 billion budget for the 2026/27 financial year, despite ongoing scrutiny over its financial stability and debt recovery performance.
Appearing before Parliament’s Standing Committee on Public Accounts on Tuesday, senior officials outlined an expanded revenue collection strategy aimed at strengthening the municipality’s financial position and ensuring that budgeted expenditure is fully backed by improved recoveries. The administration said a broader turnaround programme is already in motion.
Chief Financial Officer Tebogo Moraka told MPs that the city is actively improving its billing and collection systems and is exploring the use of advanced data analytics tools similar to those employed by the South African Revenue Service (SARS). The aim, he said, is to gain deeper insight into the city’s customer base and improve compliance.
The municipality is currently facing a legal challenge from the Democratic Alliance (DA), which has questioned the credibility of the budget and raised concerns about whether the city has the capacity to finance its spending commitments. Despite this, officials maintained that revenue performance is improving, citing a 90% collection rate recorded in April.
Moraka added that residential consumers account for approximately 62% of the city’s outstanding debt, making them a key focus area for improved enforcement and engagement. He said targeted interventions are being implemented in high-density inner-city areas, where non-payment in apartment blocks has significantly contributed to arrears.
Water services were identified as the largest single component of unpaid municipal accounts, further compounding the city’s revenue pressures.
However, DA MP Farhad Essack expressed scepticism about the municipality’s projections, pointing to an average debt collection period of 86 days and questioning whether the city’s operational systems are sufficiently efficient to support its revenue ambitions.
While acknowledging that recent audited financial statements do not yet reflect the anticipated improvements, Moraka said the municipality is refining its billing systems in collaboration with other metros, as part of a wider effort to strengthen financial management and improve long-term collection performance.