The City of Johannesburg's final 2026/27 budget still fails to resolve its underlying crisis of infrastructure decline, weak financial management, rising debt and poor service delivery, despite public pressure leading to some meaningful changes in the initial draft budget.

In a joint statement released on Wednesday, the Johannesburg Crisis Alliance (JCA), JoburgCAN and WaterCAN said that the budget, adopted against a backdrop of growing concern about the city's financial sustainability, lays bare the deep financial, governance and service delivery challenges confronting the municipality.

While organised public participation succeeded in securing a few important changes to the draft budget, including substantial increases in repairs and maintenance spending and reductions to proposed board-member posts, the changes do not resolve Johannesburg's deeper crisis.

The city, however, continues to face weak revenue collection, rising customer debt, escalating water and electricity losses, inadequate capital investment, unresolved governance failures and insufficient transparency, the parties said in the statement.

The trio identified several key concerns with the final budget, noting that residents continue to face rising tariffs and charges, including steep increases in the water demand management levy, which the city retained.

From July, households will pay R107.74 a month and businesses R413.84 a month, excluding VAT.

The JCA and its partner organisations objected to this increase during the public participation process because it places an additional burden on residents already struggling with the rising cost of living.

The household levy increases by 65.6% compared with 2025/26 and has increased by 77.9% since 2024/25.

“While the city argues that the levy is necessary to fund the sustainability and maintenance of water and sanitation services, we remain concerned that a 65.6% increase in the water demand management levy is simply too significant to pass without scrutiny,” it said, adding that if this levy has the potential of generating about R1.7-billion a year, the city must show residents exactly where that money is in the budget and how it is going to be spent.

“There can be no blank cheque. If the increase proceeds, the revenue must be fully ring-fenced for water and sanitation. Johannesburg residents deserve transparency, accountability and proof that higher tariffs will result in better services.”

Further, in the submissions on the city's draft Budget 2026/27, the organisations warned that repairs and maintenance spending “appears to be falling sharply, despite enormous infrastructure backlogs and worsening service delivery failures".

In the city's response, set out in its report on the public participation process, it said this comment was "highly appreciated" and acknowledged the urgent need to improve cash holdings in order to provide more resources for repairs and maintenance.

The final Budget 2026/27 to 2028/29, adopted by council on May 28, nearly doubles the repairs and maintenance budget, from an average of 4.1% of the value of property, plant and equipment budgeted over the medium term in the draft budget to an average of 8% over the medium term in the final budget.

“The roads budget has been cut, but the city intends to significantly increase repairs and maintenance spending on electrical, water and sanitation infrastructure.”

There was a significant reduction in the number of board member posts for city entities, from a proposed increase from 70 positions to 385 in the draft, to an increase to 88 positions.

“While the reduction from the proposed 385 positions to 88 is welcome, serious questions remain about why such a substantial increase was proposed in the first place and why similar figures have appeared in budget documents over several years. We have raised concerns that the dramatic increase in board member positions could create opportunities for politically connected appointments ahead of the November local elections,” the statement noted.

The total city personnel numbers have also been revised. The draft budget planned an increase from 38 479 positions to 40 707, now amended in the final budget to a lower increase to 40 176.

The tripling of senior management posts remains, rising from 330 positions currently to 1 025. Despite these large staff numbers, the city still reports no roads or sanitation professionals, and no roads, sanitation or refuse technicians.

The partner organisations also raised concerns about the cost of executives and entity CEOs. These allocations increased further in the final budget.

“The cost of senior managers rises from R54.18-million in the draft budget to R57.14-million in the final budget, while the cost of entity CEOs rises from R42.47-million to R43.37-million.”

Meanwhile, although the city is budgeting for revenue of R90-billion, its financial position remains fragile.

“National Treasury's trading services reform programme has not made sufficient progress. Billing problems, inadequate collections and rising customer debt continue. The city owes Eskom over R5-billion, and the Presidential Johannesburg Working Group was recently told that Joburg Water currently owes about R500-million to contractors. The city's goal of paying creditors within 30 days still appears far off.

“Water and electricity losses continue to cost the city heavily. Council was told that water losses have risen to 48.7% and electricity losses to 32%.”

Further, the city's yearly report and financial statements for 2024/25, tabled this week, record additional irregular expenditure of R3.77-billion during the year, bringing the closing balance to R9.28-billion.

Another R9.11-billion in unauthorised expenditure was recorded during the year and, after write-offs of R18.46-billion, the year closed with a balance of R3.68-billion.

“These figures point to deeply concerning governance failures.”

JCA, JoburgCAN and WaterCAN also remain concerned about persistent transparency gaps in the city's budget documentation, and the withdrawal of key reports from the council agenda only reinforces concerns about the city's financial position and readiness to implement meaningful reform.

“We demand that the city must now publish the withdrawn Financial Turnaround Plan for public comment, explain how it intends to fund and implement infrastructure recovery, and demonstrate that this budget will be matched by credible delivery, accountability and reform.

"The challenge now is ensuring that the city follows through with transparency, accountability and delivery while addressing the deeper financial and governance crisis confronting Johannesburg.

“This budget should not be judged by the promises it contains, but by the results it delivers. The real test will be whether the city can translate this budget into measurable improvements in people's daily lives.”

JCA, JoburgCAN and WaterCAN will continue to monitor implementation, demand transparency and hold the city accountable for every commitment made.