Cape Town passes the ‘Building Hope’ Budget for 2023/24

31 May 2023

‘Our budget team, which includes some of the smartest and most hard-working people in the City, managed to strike a perfect balance between ambitious forward planning, the immediate needs of the city’s most vulnerable residents, and respect and understanding for the increasing pressures felt by ratepayers.

While many other metros and municipalities are struggling to keep up with service delivery demand and the substantial investment in infrastructure that this requires, we have just tabled a record R11bn capital expenditure budget, and we have clear plans and targets to stay ahead of the rate of population growth and urbanisation in Cape Town,’ said Mayor Hill-Lewis.

The budget includes the most comprehensive social package of metros linking indigent relief to property value, with a 100% rates rebate for all properties valued under R450 000, 15kl of free water, and up to 60 free electricity units monthly.

Lifeline electricity customers will also pay 50% less in the 350 – 450 unit usage band, and the City has managed to reduce Eskom’s 18,5% to 17,6% for all customers.

The budget further makes it easier for more pensioners and social grant recipients to get rates rebates by raising the qualifying threshold to R22 000 monthly income.

Cape Town’s ratepayers will also benefit from the lowest rates for residential and commercial properties of South Africa’s metros based on the cent-in-the-rand-rate, with the first R450 000 rates-free on all properties valued under R5 million.

The City’s new Building Hope Budget positions Cape Town for economic growth and job creation, including:

A R2,3bn end load-shedding plan

40% bigger infrastructure budget, surpassing even the World Cup investment at a record R11bn

Big increases of 100% or more for better sanitation networks to meet the needs of a growing city

R2,2bn for new water sources, R2,6bn for better roads,

And R860m in Technology to Make Cape Town Safer, including CCTV, drones, and dashcams

Based on an analysis of tabled budgets for each of the metros:

Cape Town will spend more on infrastructure than Johannesburg and Durban combined over the next three years

Adjusted per capita, Cape Town is spending 105% more on infrastructure in 23/24 than Joburg – SA’s largest city by population

Roughly 73% - or R8bn - of Cape Town’s R11bn capital budget goes towards critical infrastructure servicing lower-income households in our city.

Despite much higher infrastructure investments than the rest, Cape Town is also SA’s metro with the lowest rates for both commercial and residential properties in 2023/24 based on the cent-in-the-rand rate, a statutory measure to calculate property rates.

Residents may qualify for indigent support if they:

-         are a homeowner

-         earn R7 500 or less per month

-         own only one property

-         are the full-time occupant of the home

-         use the home mainly for residential purposes

-         are a child who lives in the home of a parent who has passed away

-         received the house in a divorce settlement

-         depend on a pension or a social grant for their livelihood

Applicants will need:

-         proof of identification (ID book/card or passport)

-         a bank statement for the last three months or a sworn affidavit stating that they do not have a bank account

-         a bond statement for the last three months or a sworn affidavit stating that they do not have a bond account

-         a copy of the estate documents if the applicant has inherited his or her house

If residents are employed, they must also include:

-         latest salary/wage pay slip or a letter from an employer stating their income

-         a sworn affidavit if they are self-employed stating how much is earned per month

-         proof if a disability grant, maintenance grant or pension is received

If residents are unemployed, they must include the following in the application:

-         a sworn affidavit stating that they are unemployed

-         a sworn affidavit stating that they have no other source of income

Useful contacts and information:

For rates or services relief

-         Visit: https://www.capetown.gov.za/City-Connect/Apply/Financial-relief-and-rebates/Individuals/Apply-for-indigent-rates-relief or a City customer office.

-         Email: [email protected]

Pensioner rates relief

-         Pensioners 60 years or older and people who receive social grants amounting to no more than R17 500 may qualify for a rates rebate of between 10% and 100%. They are invited to go to the nearest City customer care office or send an email to [email protected]

-         For more information on how to apply for pensioner support: https://www.capetown.gov.za/City-Connect/Apply/Financial-relief-and-rebates/Individuals/Apply-for-senior-citizen-support

For payment arrangements

-        Visit: https://www.capetown.gov.za/City-Connect/Pay/Municipal-accounts/Electricity/arrange-a-payment-plan-for-debt-collection

-         Email: [email protected]

For a list of the City’s Cash Offices and Walk-in Centres, please visit: https://www.capetown.gov.za/Explore%20and%20enjoy/See-all-City-facilities/Our-service-facilities/Walk-in%20centres

Issued by Media Office, City of Cape Town, 31 May 2023