The budget speech, which included the proposed tariff increases for cape town has left many of the city’s residents shocked. The price of water and sanitation have increased significantly. The price of water increasing by almost 50% over the past two years. The increase will assist to make up for the shortfall of increased capital expenditure for various water projects around the city. The projects are required to add additional water capacity because of the intense drought that took place in Cape Town over the last few years.  So here is the rundown on the tariff increases.

The increases

  • Property rates by 7.20%
  • Electricity by 8.14 %
  • Water by 26.96%
  • Sanitation 26.96%
  • Refuse 5.70%

On top of that, they are some additional taxes that Capetonians must pay for. One of these is for ratepayers who own a property valued over R1m. They will have to pay an additional R150 pm for a fixed charge.

What it would be used for

Here is a list of some of the projects that are taking place next year:

  1. R235m for the dark fibre broadband infrastructure
  2. R135m for electrification
  3. R5m for CCTV installations
  4. R21m for cemetery developments
  5. R12m for sport and recreation facilities upgrades
  6. R240m for congestion relief projects
  7. R105m for land acquisition
  8. R5 097 million for Informal Settlements, Water & Waste Services
  9. Water & Sanitation: Potsdam Plant Re-use for R322,000
  10. Water & Sanitation: Macassar Plant Re-use for R50,000

How this would affect the city?

The Tariff increases will significantly affect the economy. Capetonians are struggling to pay for the expensive living costs in Cape Town, and with the proposed tariff increases will make the cost of living for Capetonians even higher. It is increasingly likely that people will need to start to tighten their belts to avoid going into debt and being unable to pay for municipal bills. 

How can you have your say

Until the 4th of May, Cape Town citizens can have their say in the budget plan. They can go to https://www.dearcapetown.co.za/coct-budget/ and send their feedback and thoughts to the government. Everyone’s comments can make a difference to the proposed increases. 

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