Cape Town seeks public input on ‘Building Hope’ budget for 2023/24

Cape Town residents have been given until 5 May 2023, to comment on the city’s ‘Building Hope’ budget for the 2023/24 financial year, according to the city’s Mayoral Committee Member for Finance, Councillor Siseko Mbandezi.

Mbandezi explained that the budget outlines proposed projects and expenditures in various communities and neighbourhoods within the metro.

It also suggests tariffs for services and available assistance for residents and ratepayers.

Essential information

He confirmed that the budget includes essential information such as proposed community projects, plans to improve basic service delivery, strategies to put an end to load shedding, measures to enhance water and wastewater resilience, and the income required from rates to pay for shared services like fire services and parks.

The draft budget proposes providing about R4.3 billion in rates and services relief, which is approximately R500 million more than the current financial year.

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The proposed relief highlights include R4.3bn social package, 50% rate relief increase 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 the city.

Rates rebates

In addition, Mbandezi explained, more pensioners and social grant recipients will benefit from rate rebates by raising the upper qualifying limit from R17 500 to R22 000 total monthly household income.

He also said that about 192 500 properties valued at R450 000 or below or household income below R7 500 will receive monthly benefits such as a 100% rebate for property rates and refuse removal, 15kl free water and 10.5kl free sanitation, and up to 60 free electricity units.

“The Lifeline tariff structure has also changed with customers consuming more than 350 units currently paying R3.71 per unit now paying R1.84.

“The city has reduced Eskom’s 18.49% increase to 17.6%, absorbing some R15 million per month 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. The city cannot absorb the entire tariff increase as it would amount to more than R180 million per year,” he said.

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Approximately 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.

The proposed increase in rates revenue required is a 6.9% increase to fund shared services such as parks, fire services, and health.

The proposed average tariff increases include water and sanitation at 8.6%, electricity at 17.6%, and refuse at 5.5%. All income generated from these tariffs will be used to cover the cost of service provision.