Cape Town residents could be forking out more money for water, property, refuse and electricity if proposed increases are approved. Picture: Matthew Jordaan/African News Agency (ANA) Archives
Cape Town residents could be forking out more money for water, property, refuse and electricity if proposed increases are approved. Picture: Matthew Jordaan/African News Agency (ANA) Archives

Cape residents facing tariff increases in City’s 2020/21 draft budget

By Marvin Charles Time of article published Mar 31, 2020

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Cape Town - Cape Town residents could be forking out more money for water, property, refuse and electricity if proposed increases are approved.

The new tariff hikes are part of the City’s 2020/21 draft budget, which goes out for public consultation in April. The proposed budget for the 2020/2021 financial year amounts to R52.7billion and consists of R44bn for operational expenditure and R8.7bn for capital expenditure.

Mayco member for finance and deputy mayor Ian Neilson said: “The City is assisting residents where it can but unfortunately is not able to offer complete financial relief to all residents. The City cannot take on the task of significant economic support beyond its mandate, when that is the task of the national government, which sits on the national fiscus income of R1.5 trillion versus the City’s R50bn, which must be used to deliver services.”

He said the City’s budget, tabled for the 2020/21 financial year, again proposed a comprehensive social package of more than R3bn for qualifying residents and pensioners who were 60 years and older.

“Before the disaster declaration, in the months and weeks leading up to the tabling of the draft budget, much work was done on affordability aspects of rates and services given the already existing economic pressure on customers. Therefore, the draft budget proposes smaller increases of between 3.5% and 4.8%, in line with or below the inflation rate. A social assistance package for rates and services of more than R3bn is also proposed,” he said.

Some of the key rates and tariff increases include property rates, which increase by 4%, electricity increases by 4.8%, water and sanitation by 4.5% and refuse collection by 3.5%.

Spokesperson for Justice 4 Cape Town Ghalema Easton said: “They are trying to make money off communities which are absolutely at death’s door, with people struggling already.”

Stop City of Cape Town founder Sandra Dickson said: “The City had not even cleared the previous year’s backlog of objections to property valuations, but is yet again proposing to increase our property rates.”

@MarvinCharles17

[email protected]

Cape Argus

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