Tag Archives: draft budget

The City of Cape Town draft Budget 2018-2019 comment period is open

The City of Cape Town’s draft Budget 2018-2019 is available for comment until 16:30 on Friday, 4 May 2018.

A budget of R 49.1 billion will be spent in the metropolitan area to ensure that services are maintained, improved and expanded, that capital projects are rolled out and that the Integrated Development Plan (IDP) is implemented.

The effect of the unprecedented and continuing drought is a strong theme and has influenced many factors, including tariff increases and reviews in tariff structure. 

2016-2017 Budget highlights:

Created 45 370 EPWP job opportunities; invested R 3.7 billion (2015/16: R 3.3 billion) in repairs and maintenance; installed 1 747 subsidised electricity connections; provided 676 new taps and 2 085 new toilets to informal settlements; achieved 69,86% employment rate of people from employment equity target groups at the highest levels of management.
• Review the draft 2018/2019 Budget documents
• Comment online and read the common draft Budget FAQs
• You can see what an existing tariff will look like under the new draft Budget by reviewing Annexure 6 and the various documents by Directorate.
• For a comprehensive overview of the tabled budget and proposed changes, please read Annexure A.

Highlights from Annexure A:

• An allowance of R 76 million for indigent relief.
• Introduction of a fixed service charge for both water and electricity.
• Planned capital expenditure includes R 5 billion for Informal Settlements, Water & Waste. Services, R 1.7 billion for the Transport & Urban Development Authority and R 1.1 billion for Energy.
• Simplifying the steps of the water and electricity tariff from six to four.
The proposed average rates and tariff increases for 2018-19 are shown the table below. 

Important things to remember:
• The City does not make any profit on the sale of water or electricity.
• The National Energy Regulator of South Africa (NERSA) approved an average percentage price increase of 5.23% to Eskom for the 2018-19 financial year, which translates to a 7.32% increase for municipalities.
Frequently asked questions:
• Rates and valuation FAQs
• Electricity tariff FAQs