City of Johannesburg Metropolitan Municipality - History

History

During the apartheid era, Johannesburg was divided into 11 local authorities, seven of which were white and four black or coloured. The white authorities were 90% self-sufficient from property tax and other local taxes, and spent Rand 600 (USD $93) per person, while the black authorities were only ten percent self-sufficient, spending Rand 100 (USD $15) per person.

The first post-apartheid City Council was created in 1995. The council adopted the slogan "One City, One Taxpayer" in order to highlight its primary goal of addressing inequal tax revenue distribution. To this end, revenue from wealthy, traditionally white areas would help pay for services needed in poorer, black areas. The City Council was divided into four regions, each with a substantially autonomous local regional authority that was to be overseen by a central metropolitan council. Furthermore, the municipal boundaries were expanded to include wealthy satellite towns like Sandton and Randburg, poorer neighbouring townships such as Soweto and Alexandra, and informal settlements like Orange Farm. The four councils or Metropolitan Local Councils (MLCs) were the Northern MLCl, Southern MLC, Eastern MLC and Western MLC (sometimes referred to as Metropolitan Substructures), under a central metropolitan council. This arrangement ended in 2000.

In 1999, Johannesburg appointed a city manager in order to reshape the city's ailing financial situation. The manager, together with the Municipal Council, drew up a blueprint called "Igoli 2002". This was a three-year plan that called upon the government to sell non-core assets, restructure certain utilities, and required that all others become self-sufficient. The plan took the city from near insolvency to an operating surplus of Rand 153 million (USD 23.6 million).

The plan was fiercely contested by trade unions, who argued that it would result in job losses and tariff increases. The core of Igoli 2002 was to restructure Metro Gas, Rand Airport, and some sports stadiums as stand-alone corporate entitites. The city bus service, the Johannesburg Zoo, the Civic Theatre, the Fresh Produce Market, and the city's property holdings were turned into corporations with the city as the single shareholder. Each was run as a business, with management hired on performance contracts.