Faced with ailing infrastructure and sewer spills amid a growing population, Cape Town mayor Geordin Hill-Lewis has proposed a budget of R10.9 billion to address and improve its response to these issues.
In tabling his R69.9bn budget for the 2023/2024 financial year, Hill-Lewis said the R10.9bn budget would go towards capital expenditure.
“That’s more than was spent in the 2010 World Cup with all its mega projects, and it’s 40% up from this year’s budget. To put this into context, from 1 July, we plan to build R30 million (worth) of infrastructure every day of the year, including weekends.”
Hill-Lewis also promised to ramp up infrastructure investment over the next three years, finally reaching R18bn.
“Looking even further down the road, over the next ten years, we will spend R120bn on infrastructure projects, the bulk of which will go towards upgrading and expanding water and sanitation infrastructure across the Metro.”
The proposed capital budget for water and sanitation was set at R2.3bn to increase over the coming years gradually.
“By 2025, it will be R7.8bn. That means the water and sanitation budget in 2025 will be bigger than our entire capital budget this year,” he promised.
A total of R11m was put aside for rapid response sewer spill teams, R16m for sewer pump station response teams, and R31m for extra cleaning of drains and flooding prevention.
An estimated R1.4bn will be used for bulk sewer upgrades to the Milnerton, the Cape Flats, Gordon’s Bay and Philippi sewer mains.
The budget also proposed a total social support package of R4.3 bn. Of this amount, R1.96bn would go towards rates rebates and R2.37bn for free basic services for the poor.
Properties valued at R450 000 or below, or with household income below R7 500, would also receive:
* 100% rebate for property rates and refuse removal
* 15kl free water and 10.5kl free sanitation
* Up to 60 free units of electricity
The proposed electricity tariff structure would also see residents pay 17.6% more from July 1. The threshold for the first block of the lifeline tariff would be raised from 350 units to 600 units purchased in a month.
“If we had to substantially subsidise the Eskom hike (18.49%), we would have to slash the budgets for basic services,” said Hill-Lewis.
He further explained that R2.3bn would go towards ending load shedding which would benefit independent power purchases and “power heroes“ who used less power at peak times.
In line with the project to buy back excess solar power from households and businesses, the feed-in tariff would now be 10.15%.
“This makes solar even more attractive. We want as many residents and businesses as possible to help us end load-shedding over time, and there are no limits to how much power you can sell us,” Hill-Lewis said.
Civil society group, STOP COCT, welcomed the proposed tariffs for households.
However, its spokesperson Sandra Dickson said there was nothing to celebrate regarding the looming electricity tariffs.
“The City’s 60% bulk purchase from Eskom should be the only portion of City electricity costs affected by the Eskom increase (18.49%). However, the City still adds a whopping 17.6% increase to personnel salaries, maintenance and other overheads.
“The 17.6% is way above the current inflation rate of 6.9%, which would be justly applied to salaries and other overheads,“ said Dickson.
The Cape Chamber of Commerce and Industry said the City’s “steep” electricity tariff increase was “inevitable” due to Eskom’s increase.
“Subsidising Eskom was not a viable option for the City – it would have significantly eroded the available budget for service delivery and indigent relief.
“We support the City’s efforts to cushion the blow for the most vulnerable, in the form of rates relief increase for poorer households,” said Chamber President Jacques Moolman.
The draft budget is open for public comments until May 5.
Weekend Argus