The City of Cape Town has released its ‘Building Hope’ Budget, open for public comment. The proposed budget includes a social relief package of R4.3 billion aimed at providing assistance to residents and ratepayers in the upcoming financial year.
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This amount represents an increase of approximately R500 million compared to the current financial year.
The City has cited rising costs, including Eskom’s price hikes and the continuing economic impact of the COVID-19 pandemic and lockdown as reasons for the proposed relief package.
The City has also proposed a record R11 billion capital budget for the 2023/24 financial year, with plans for R120 billion in infrastructure investment over the next decade to create a resilient city of hope that can withstand future shocks and support economic growth.
The public is encouraged to review and provide feedback on the ‘Building Hope’ Budget until May 5, 2023.
‘With the rising costs, including Eskom’s price hikes and the lingering economic impact on residents from the Covid-19 pandemic and lockdown, the City has investigated absolutely every avenue to buffer residents where possible.’
‘We have done our best to keep affordability front of mind while not risking the delivery of services while investing in Cape Town’s future. As such, we have proposed a record R11bn capital budget proposed for the 2023/24 financial year.’
‘Over the next decade, some R120 billion in infrastructure investment is foreseen to build a resilient City of Hope that is well-positioned to weather the shocks of the future while also unlocking more meaningful economic growth. We urge members of the public to comment on this Building Hope budget until 5 May 2023,’ said the City’s Mayoral Committee Member for Finance Councillor Siskeko 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, with the first R450 000 of property value now rates-free. Over 700 000 properties foreseen 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 would 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 approximately 1% reduction amounts to some R100 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 R2 billion per month. 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.
- View the Tabled Budget here or go to your nearest subcouncil office or library for a copy of the budget.
- View the subcouncil public meeting schedule here.
- Written comments: By email: [email protected]
- Verbal inputs: 0800 212 176
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Picture: City of Cape Town