The City’s 2023/24 Council-approved Budget includes the new property rates and tariffs that will be visible in municipal accounts from the July billing cycle. [image: City of Cape Town] <cityofcapetown.evlink19.net/servlet/link/28659/119611/66218742/616409>
30 June 2023
*New rates and tariffs come into effect from 1 July 2023*
*Dear valued customer and ratepayer,*
The City’s 2023/24 Council-approved Budget includes the new property rates and tariffs that will be visible in municipal accounts from the July billing cycle. Thank you for the input provided during the public participation process.
*Affordability for our customers has been top of mind, along with ensuring that the income from rates and services is sufficient to cover the cost of providing services in Cape Town.*
We’ve all been battered and bruised by the unprecedented levels of Eskom load-shedding over the past year. This, as we are still recovering from the lingering impacts of the Covid-19 pandemic and lockdown, as well as South Africa’s economic state.
Despite these challenging circumstances, we are prioritising continued investment into basic services. As such, Cape Town has an ambitious infrastructure investment portfolio of R120 billion over the next 10 years.
Over the next three years, we will invest more in critical basic services infrastructure than Johannesburg and Durban combined (R43bn). We are achieving this, while maintaining South Africa’s lowest commercial and residential property rates based on a rate-in-the-Rand comparison of metros.
Our aim is to boost job-creating economic growth and sustainability, as we build towards our long-term vision of a city of hope for all.
*Two big priorities are energy and water security.*
Overall, Cape Town is planning to add up to one gigawatt of independent power supply to end load-shedding in Cape Town, with the first 650MW to come on line within five years, including enough capacity to protect against four Eskom load-shedding stages by 2026.
There are also big infrastructure budget increases of 100% or more for better sanitation networks (including the annual pipe replacement), R2,2 billion for new water sources and other major increases for upgrades to sewer pump stations and wastewater treatment works. The City hopes residents will understand the slightly above-inflation water and sanitation tariff to fund these major infrastructure investments.
To fund our service provision and to cater for our growing city, the following is required:
*Rates*:
– *Property rates: 6,09% increase* in rates revenue required to fund shared services such as parks, fire services, health and community facilities. Rates increases from 1 July 2023 will vary among ratepayers due to the introduction of the new General Valuation Roll reflecting the market valuations of all properties as at 1 July 2022. – *Some residents will also benefit from up to a 50% rates relief increase*: with the first R450 000 of residential property valuations being rates-free for all properties of R5 million and under; the highest relief provided by metros. 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.
*Tariffs*:
– *Water and sanitation: 8,6% increase* to cover costs and build water resilience, as Cape Town is in a water-scarce region. The cost of providing the water service remains largely the same regardless of how much or how little water flows through the system or how much water is in the dams. – *Electricity: 17,6 % (Eskom-driven increase)*: The City has been able to reduce Eskom’s 18,49% increase to 17,6%, and offer protection for lower income customers on the subsidised Lifeline tariff, while still funding plans to end sole reliance on expensive Eskom power as soon as possible. – *Refuse: 5,5% increase*
*Income from rates and services goes toward the provision of services.*
Visit the rates and tariffs page <cityofcapetown.evlink19.net/servlet/link/28659/119611/66218742/616410>
*Tips to manage household bills*
– Use less water or electricity and you pay less – Reduce your geyser’s temperature to 60 degrees Celsius to reduce costs – Buying electricity in bulk is not cheaper. Rather buy small amounts as required to stay on the cheaper tariff band.
We thank our loyal customers and ratepayers for your continued support. You are helping to make Cape Town shine as an example of what a metro in South Africa can achieve with hard work, vision and clean governance.
The average annual payment ratio of 97% shows the great level of trust you have in this metro. Thank you for your payments. The ratings agency Moody’s has also just rated Cape Town as stable due to ‘excellent management practices’.
We are ready to do what is required to make Cape Town a future-fit city. As always, there is room for improvements and we will work hard over the next year to sharpen our efforts and do better.*Yours in service, Kevin Jacoby Chief Financial Officer, City of Cape Town* [image: Information] Subscribe to City News Online <cityofcapetown.evlink19.net/servlet/link/28659/119611/66218742/616411> (CNO) to receive the latest news and information from the City of Cape Town. CNO is issued fortnightly and includes recent highlights, service delivery notices and alerts. © City of Cape Town, 2023
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*New rates and tariffs come into effect from 1 July 2023*
*Dear valued customer and ratepayer,*
The City’s 2023/24 Council-approved Budget includes the new property rates and tariffs that will be visible in municipal accounts from the July billing cycle. Thank you for the input provided during the public participation process.
*Affordability for our customers has been top of mind, along with ensuring that the income from rates and services is sufficient to cover the cost of providing services in Cape Town.*
We’ve all been battered and bruised by the unprecedented levels of Eskom load-shedding over the past year. This, as we are still recovering from the lingering impacts of the Covid-19 pandemic and lockdown, as well as South Africa’s economic state.
Despite these challenging circumstances, we are prioritising continued investment into basic services. As such, Cape Town has an ambitious infrastructure investment portfolio of R120 billion over the next 10 years.
Over the next three years, we will invest more in critical basic services infrastructure than Johannesburg and Durban combined (R43bn). We are achieving this, while maintaining South Africa’s lowest commercial and residential property rates based on a rate-in-the-Rand comparison of metros.
Our aim is to boost job-creating economic growth and sustainability, as we build towards our long-term vision of a city of hope for all.
*Two big priorities are energy and water security.*
Overall, Cape Town is planning to add up to one gigawatt of independent power supply to end load-shedding in Cape Town, with the first 650MW to come on line within five years, including enough capacity to protect against four Eskom load-shedding stages by 2026.
There are also big infrastructure budget increases of 100% or more for better sanitation networks (including the annual pipe replacement), R2,2 billion for new water sources and other major increases for upgrades to sewer pump stations and wastewater treatment works. The City hopes residents will understand the slightly above-inflation water and sanitation tariff to fund these major infrastructure investments.
To fund our service provision and to cater for our growing city, the following is required:
*Rates*:
– *Property rates: 6,09% increase* in rates revenue required to fund shared services such as parks, fire services, health and community facilities. Rates increases from 1 July 2023 will vary among ratepayers due to the introduction of the new General Valuation Roll reflecting the market valuations of all properties as at 1 July 2022. – *Some residents will also benefit from up to a 50% rates relief increase*: with the first R450 000 of residential property valuations being rates-free for all properties of R5 million and under; the highest relief provided by metros. 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.
*Tariffs*:
– *Water and sanitation: 8,6% increase* to cover costs and build water resilience, as Cape Town is in a water-scarce region. The cost of providing the water service remains largely the same regardless of how much or how little water flows through the system or how much water is in the dams. – *Electricity: 17,6 % (Eskom-driven increase)*: The City has been able to reduce Eskom’s 18,49% increase to 17,6%, and offer protection for lower income customers on the subsidised Lifeline tariff, while still funding plans to end sole reliance on expensive Eskom power as soon as possible. – *Refuse: 5,5% increase*
*Income from rates and services goes toward the provision of services.*
Visit the rates and tariffs page <cityofcapetown.evlink19.net/servlet/link/28659/119611/66218742/616410>
*Tips to manage household bills*
– Use less water or electricity and you pay less – Reduce your geyser’s temperature to 60 degrees Celsius to reduce costs – Buying electricity in bulk is not cheaper. Rather buy small amounts as required to stay on the cheaper tariff band.
We thank our loyal customers and ratepayers for your continued support. You are helping to make Cape Town shine as an example of what a metro in South Africa can achieve with hard work, vision and clean governance.
The average annual payment ratio of 97% shows the great level of trust you have in this metro. Thank you for your payments. The ratings agency Moody’s has also just rated Cape Town as stable due to ‘excellent management practices’.
We are ready to do what is required to make Cape Town a future-fit city. As always, there is room for improvements and we will work hard over the next year to sharpen our efforts and do better.*Yours in service, Kevin Jacoby Chief Financial Officer, City of Cape Town* [image: Information] Subscribe to City News Online <cityofcapetown.evlink19.net/servlet/link/28659/119611/66218742/616411> (CNO) to receive the latest news and information from the City of Cape Town. CNO is issued fortnightly and includes recent highlights, service delivery notices and alerts. © City of Cape Town, 2023
You are receiving this email as an e-Billing subscriber. Please unsubscribe <cityofcapetown.evlink19.net/servlet/link/28659/119611/66218742/616412> if you no longer wish to receive these communications.
Website <cityofcapetown.evlink19.net/servlet/link/28659/119611/66218742/616413> | eServices <cityofcapetown.evlink19.net/servlet/link/28659/119611/66218742/616414> | Report a Fault <cityofcapetown.evlink19.net/servlet/link/28659/119611/66218742/616415> | Contact Us <cityofcapetown.evlink19.net/servlet/link/28659/119611/66218742/616416> | Facebook <cityofcapetown.evlink19.net/servlet/link/28659/119611/66218742/616417> | Twitter <cityofcapetown.evlink19.net/servlet/link/28659/119611/66218742/616418> | CCT Alerts <cityofcapetown.evlink19.net/servlet/link/28659/119611/66218742/616419> | YouTube <cityofcapetown.evlink19.net/servlet/link/28659/119611/66218742/616420> For enquiries please call our call centre at 0860 103 089 Privacy Policy <cityofcapetown.evlink19.net/servlet/link/28659/119611/66218742/616421> | Terms and Conditions <cityofcapetown.evlink19.net/servlet/link/28659/119611/66218742/616422>
Tariff_highlights_infographic.pdfNew rates and tariffs come into effect from 1 July 2023