Cape Town’s ‘Building Hope’ Budget for 2023/24 was officially passed by the City Council today, 31 May 2023.
Addressing the council, Mayor Geordin Hill-Lewis said that the budget includes South Africa’s most comprehensive indigent relief package and a record infrastructure budget of R43 billion over three years – more than Joburg and Durban combined.
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Mayor Hill-Lewis said:
He continued, ‘While many other metros and municipalities are struggling to keep up with service delivery demand and the substantial investment in infrastructure that this requires, we have just tabled a record R11 billion capital expenditure budget, and we have clear plans and targets to stay ahead of the rate of population growth and urbanisation in Cape Town.’
The budget includes the most comprehensive social package of all the metros, with a 100% rate rebate for all properties valued less than R450 000, 15 kilolitres of free water and up to 60 free electricity units monthly.
Lifeline electricity customers will also pay 50% less in the 350 to 450 unit usage band and Eskom’s 18.5% will be reduced to 17.6% for all customers.
The budget makes it easier for more pensioners and social grant recipients to qualify for rate rebates by raising the qualifying income threshold to R22 000 per month.
Ratepayers in Cape Town will also benefit from the lowest rates in South Africa’s metros for residential and commercial properties based on the cent-in-the-rand rate, with the first R450 000 rate-free on all properties valued under R5 million.
The City’s ‘Building Hope’ budget positions Cape Town for economic growth and job creation, including:
- A R2.3 billion plan to end loadshedding.
- A 40% bigger infrastructure budget, surpassing even the World Cup investment at a record R11 billion.
- Big increases of 100% or more for better sanitation networks to meet the needs of a growing city.
- R2.2 billion for new water sources and R2.6 billion for better roads.
- R860 million in technology to make Cape Town safer, including CCTV, drones and dashcams.
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- Cape Town will spend more on infrastructure than Johannesburg and Durban combined over the next three years.
- Adjusted per capita, Cape Town is spending 105% more on infrastructure in 2023/24 than Joburg, South Africa’s largest city by population.
- Roughly 73%, or R8 billion, of Cape Town’s R11 billion capital budget, will go towards critical infrastructure servicing lower-income households.
- Despite much higher infrastructure investments than the rest, Cape Town is also South Africa’s metropolis with the lowest rates for both commercial and residential properties in 2023/24 based on the cent-in-the-rand rate, a statutory measure to calculate property rates.
He explained that investors are drawn to locations where they have faith in the future.
‘In Cape Town, they see a safe bet. They see a city planning far ahead and investing in the critical infrastructure that will make this a viable place to run a business decades into the future,’ he said.
Investors, according to the mayor, see Cape Town as a city that works hard to remove bureaucratic barriers rather than imposing them, as a city that cares for all of its residents, and as a city that fosters shared prosperity.
‘Investors are attracted to this kind of good governance, which leads to increased revenue, keeps rates in check and then allows for higher spending on services and infrastructure. It’s a virtuous cycle that raises the quality of life for all who live here,’ said Mayor Hill-Lewis.
- They are a homeowner.
- They earn R7 500 or less per month.
- They own only one property.
- They are the full-time occupants of the home.
- They use the home mainly for residential purposes.
- They are a child who lives in the home of a parent who has passed away.
- They received the house in a divorce settlement.
- They depend on a pension or a social grant for their livelihood.
Applicants will need:
- Proof of identification (ID book, card or passport).
- A bank statement for the last three months or a sworn affidavit stating that they do not have a bank account.
- A bond statement for the last three months or a sworn affidavit stating that they do not have a bond account.
- A copy of the estate documents if the applicant has inherited his or her house.
- Their latest salary or wage pay slip or a letter from an employer stating their income.
- A sworn affidavit if they are self-employed stating how much is earned per month.
- Proof of a disability grant, maintenance grant or pension is received.
- A sworn affidavit stating that they are unemployed.
- A sworn affidavit stating that they have no other source of income.
Mayor Hill-Lewis expressed gratitude to the city’s ratepayers for their support in the endeavour to create a ‘City of Hope’ for all.
‘I assure you, we will always strive to be responsible and accountable with your valuable rate contributions,’ he said.
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Picture: Stephan Louis / Unsplash