Cape Town - Capetonians are going to have to find ways to stretch their money further after Mayor Geordin Hill-Lewis tabled the draft budget for the 2022/2023 financial year.
Residents will see their rates increase by 5.2%, tariffs on refuse will increase by 5%, water and sanitation by 5%, with an additional 1.5% specifically for expanding access to water to the poorest residents living in informal settlements.
The biggest increase will come from electricity. Hill-Lewis said that because of Eskom’s 9.61% increase that was approved by the National Energy Regulator of SA (Nersa), “we are bound to a 9.5% increase in electricity tariffs this year”.
The City of Cape Town’s total budget for this year stands at R61.5 billion, and Hill-Lewis highlighted all the ways how the City intends to allocate ratepayers’ money on safety, water and sanitation, infrastructure, transport and more.
“We have been able to increase the budget without implementing above-inflation rates increases – Cape Town already has the lowest residential and commercial property rates of any metro in South Africa, and we plan to keep it that way.
“We have also been able to put this budget together while asking for only inflation-related increases on our service tariffs. All of these increases are in line with or below inflation forecasts for the coming year.
“These increases are also the lowest of any metro in the country that has tabled its budget thus far,” Hill-Lewis said.
"I want to thank our ratepayers for their support of our vision to make Cape Town a flourishing and prosperous city.
“The significant commitments made in this draft budget are being met by modest increases on what we charge residents in taxes and service tariffs. But we know this is still a substantial burden commitment for our residents.
“We will use this money to improve every one of our resident’s lives,” he said.
Here is a closer look at how the City of Cape Town plans to divvy up it’s R61.5 billion budget.