CITY OF CAPE TOWN
19 APRIL 2023
MEDIA RELEASE
About two weeks left to comment on the City’s 2023/24 budget
Residents have about two more weeks to comment on the City of Cape Town’s ‘Building Hope’ budget for the 2023/24 financial year. The budget shows what spend and projects are proposed in communities and neighbourhoods across the metro; the assistance available to residents and ratepayers and the proposed tariffs for services, of which all income is used to cover the cost of service provision. Read more below:
‘Proposed community projects, basic service delivery, plans to end load-shedding, the programme to enhance water and wastewater resilience and the income required from rates to pay for shared services such as fire services and parks are important aspects that can be found in the budget document. The draft budget also proposes some R4,3 billion in rates and services relief, approximately R500 million more than the current financial year,’ said the City’s Mayoral Committee Member for Finance, Councillor Siseko Mbandezi.
Proposed relief highlights:
· R4,3bn social package: up from R3,75bn in 22/23, with R1,96bn in rates rebates and R2,37bn in indigent relief.
· 50% rates relief increase: proposed for all residential properties of R5 million and under, and no rates payable on the first R450 000 of all properties. Over 700 000 properties are expected to benefit, representing 80% of all properties in our city.
· More pensioners and social grant recipients will benefit from rates rebates: by raising the upper qualifying limit from R17 500 to R22 000 total monthly household income.
· 192 500 properties valued at R450 000 or below, or household income below R7 500, will receive these monthly benefits:
– 100% rebate for property rates and refuse removal
– 15kl free water and 10,5kl free sanitation
– Up to 60 free electricity units
· Lifeline tariff changes: customers consuming more than 350 units currently pay R3,71 per unit, but with changes to the Lifeline tariff structure, will now pay R1,84. Lifeline customers do however still need to be mindful that the Block 1 threshold was raised to 600 units to allow people to use more during winter months, and that an average monthly consumption limit of 450 units still applies over a 12-month period to remain in this tariff category.
‘The City has been able to reduce Eskom’s 18,49% increase to 17,6%. This reduction amounts to some R15 million per month that the City is absorbing while still funding a reliable electricity service and plans to end the City’s sole reliance on Eskom’s expensive power as soon as possible. If the City were to absorb the entire tariff increase, it would amount to more than R180 million per year. The City, and its ratepayers, simply cannot afford this.
‘About 70% of the City’s tariff income goes toward buying bulk electricity from Eskom, the biggest cost driver, with the remaining 30% invested back into service delivery and ending load-shedding,’ said Councillor Mbandezi.
Proposed increase in rates revenue required:
· Property rates: 6,9% increase required to fund shared services such as parks, fire services and health.
Proposed average tariff increases
· Water and sanitation: 8,6% (to cover costs and build water resilience, as Cape Town is in a water-scarce region)
· Electricity: 17,6% (Eskom- and load-shedding-driven)
· Refuse: 5,5%
To view the tabled Budget please visit the draft budget or go to your nearest subcouncil office or library for a copy of the budget.
Community-based organisation (CBO) representatives may contact their subcouncil managers for further details on their respective area-based community meetings.
View the subcouncil public meeting schedule here.
Written comments
By email: Budget.Comments@capetown.gov.za
Through your Ward Councillor/Subcouncil offices
Verbal inputs Phone: 0800 212 176
For assistance to comment in English, Afrikaans or isiXhosa, please phone 0800 212 176
Visit www.capetown.gov.za/HaveYourSay for more information.
End
Issued by: Media Office, City of Cape Town
Media enquiries: Councillor Siseko Mbandezi, Mayoral Committee Member for Finance, City of Cape Town, Cell: 076 278 1257, Email: siseko.mbandezi@capetown.gov.za
19 APRIL 2023
MEDIA RELEASE
About two weeks left to comment on the City’s 2023/24 budget
Residents have about two more weeks to comment on the City of Cape Town’s ‘Building Hope’ budget for the 2023/24 financial year. The budget shows what spend and projects are proposed in communities and neighbourhoods across the metro; the assistance available to residents and ratepayers and the proposed tariffs for services, of which all income is used to cover the cost of service provision. Read more below:
‘Proposed community projects, basic service delivery, plans to end load-shedding, the programme to enhance water and wastewater resilience and the income required from rates to pay for shared services such as fire services and parks are important aspects that can be found in the budget document. The draft budget also proposes some R4,3 billion in rates and services relief, approximately R500 million more than the current financial year,’ said the City’s Mayoral Committee Member for Finance, Councillor Siseko Mbandezi.
Proposed relief highlights:
· R4,3bn social package: up from R3,75bn in 22/23, with R1,96bn in rates rebates and R2,37bn in indigent relief.
· 50% rates relief increase: proposed for all residential properties of R5 million and under, and no rates payable on the first R450 000 of all properties. Over 700 000 properties are expected to benefit, representing 80% of all properties in our city.
· More pensioners and social grant recipients will benefit from rates rebates: by raising the upper qualifying limit from R17 500 to R22 000 total monthly household income.
· 192 500 properties valued at R450 000 or below, or household income below R7 500, will receive these monthly benefits:
– 100% rebate for property rates and refuse removal
– 15kl free water and 10,5kl free sanitation
– Up to 60 free electricity units
· Lifeline tariff changes: customers consuming more than 350 units currently pay R3,71 per unit, but with changes to the Lifeline tariff structure, will now pay R1,84. Lifeline customers do however still need to be mindful that the Block 1 threshold was raised to 600 units to allow people to use more during winter months, and that an average monthly consumption limit of 450 units still applies over a 12-month period to remain in this tariff category.
‘The City has been able to reduce Eskom’s 18,49% increase to 17,6%. This reduction amounts to some R15 million per month that the City is absorbing while still funding a reliable electricity service and plans to end the City’s sole reliance on Eskom’s expensive power as soon as possible. If the City were to absorb the entire tariff increase, it would amount to more than R180 million per year. The City, and its ratepayers, simply cannot afford this.
‘About 70% of the City’s tariff income goes toward buying bulk electricity from Eskom, the biggest cost driver, with the remaining 30% invested back into service delivery and ending load-shedding,’ said Councillor Mbandezi.
Proposed increase in rates revenue required:
· Property rates: 6,9% increase required to fund shared services such as parks, fire services and health.
Proposed average tariff increases
· Water and sanitation: 8,6% (to cover costs and build water resilience, as Cape Town is in a water-scarce region)
· Electricity: 17,6% (Eskom- and load-shedding-driven)
· Refuse: 5,5%
To view the tabled Budget please visit the draft budget or go to your nearest subcouncil office or library for a copy of the budget.
Community-based organisation (CBO) representatives may contact their subcouncil managers for further details on their respective area-based community meetings.
View the subcouncil public meeting schedule here.
Written comments
By email: Budget.Comments@capetown.gov.za
Through your Ward Councillor/Subcouncil offices
Verbal inputs Phone: 0800 212 176
For assistance to comment in English, Afrikaans or isiXhosa, please phone 0800 212 176
Visit www.capetown.gov.za/HaveYourSay for more information.
End
Issued by: Media Office, City of Cape Town
Media enquiries: Councillor Siseko Mbandezi, Mayoral Committee Member for Finance, City of Cape Town, Cell: 076 278 1257, Email: siseko.mbandezi@capetown.gov.za
About two weeks left to comment on the City’s 2023/24 budget