CITY BUDGET OF R9,3 BILLION APPROVED
Joint Statement by the Mayor, Alderman Gerald Morkel and the City Manager, Mr Robert Maydon. "For the first time since the amalgamation of seven former municipalities, the City of Cape Town has passed a consolidated budget, amounting to R9,3 billion for 2002/2003. This includes capital expenditure of R1,9 billion and an operating budget of R7,4 billion.
View Operating Budget - Income Graph View Operating Budget - Expenditure Graph
With over a third of South African cities facing bankruptcy, Cape Town assumed a responsible approach by developing a budget to fit income rather than looking for income to fit expenditure.
The budget for the coming year is all about long-term growth, financial prudence and compassionate governance. Sustainability is important, as Cape Town contributes more than 75% to the Western Cape economy and as much as 11% to the national economy. According to the National Treasury (formerly the Department of Finance), Cape Town is way ahead of all other South African metropoles in terms of financial accountability and community participation." |
Cape Flats Conebush - Leucadendron Levisanus
...laying the foundation for sustainable growth... |
Relief for the poor
In a groundbreaking move unmatched by any other city in South Africa, the City of Cape Town also approved R145 million to fund an indigent policy. "This compassionate package confirms the City's commitment to improve its poverty alleviation programme for those citizens who really cannot afford to pay for services." Total poverty relief now stands at R225 million in terms of free water, electricity and the indigent policy.
A GUIDE TO THE MUNICIPAL ACCOUNT - WHAT'S NEW?With effect from 1 July 2002, the City of Cape Town has adopted a uniform rates and tariffs system for the entire municipal area. Rates have also been levied based on the values contained in the new Property Valuation Roll. This has meant changes for many of our customers.
There are several charges on the municipal bill, which vary according to the type of property you own and how much water you consume. Here are the details:
SINGLE RESIDENTIAL PROPERTIES
- Rates, based on the total improved value of the property. The rate is 0,989 cents in the rand (a 30% discount from the 1,413 cents in the rand applicable to commercial and industrial property and vacant land).
- Solid waste levy, based on the total improved value of the property. The rate for residential properties is 0,0382 cents in the rand. This is paid by all properties, whether or not they make use of Council's refuse service.
- Refuse collection charge: R38,60 for a wheelie bin or R33,60 for collection of black bags. Sectional title properties pay only for the bins they use.
- Sewerage basic charge: R38 per property, with subsidies according to property value.
A CARING CITYProperty owners faced with rates increases should note that the City has systems in place to address their concerns. It is not the City's intention to financially prejudice any of its ratepayers or to compel them to leave their homes. Please contact the call centre 415-8460 for information.
- Sewerage consumption charge: based on 70% of water consumption to a maximum of 50kl of water. The table on the right applies:
|
| Consumption |
Charge per kilolitre |
| 0 - 4,2kl |
FREE |
| 4,3 - 14kl |
R2,04 |
| 14,1 - 35kl |
R3,25 | |
- Water consumption charge on a stepped tariff - the more you use the more expensive it becomes. The table on the right applies:
|
| Consumption |
Charge per kilolitre |
| 0 to 61kl |
FREE |
| 7 to 20kl |
R2,73 |
| 21 to 40kl |
R4,30 |
| 41 to 60kl |
R5,46 | |
- Electricity - There are now uniform tariffs across the City in the City's area of supply.
|
NON-RESIDENTIAL PROPERTYCommercial, industrial and vacant residential land pays rates based on 1,413 cents in the rand and a solid waste levy based on 0,0545 cents in the rand (payable whether or not the Council's refuse service is used). Sewerage basic charge is R1 200 a month, with a sliding scale of subsidies based on property value (properties valued at less than R500 000 pay R50 a month). Trade refuse is charged at R46,14 per bin per month and R19,52 for black bags.
AFFORDABILITY The City of Cape Town is concerned about the impact of municipal bills, and has approved the following subsidies for residential properties:
- Rates - R50 000 of the total improved value will be discounted for rates. This means that properties valued at less than R50 000 will pay no rates, and other residential properties subtract the first R50 000 from their value for rates purposes.
- Solid waste levy - The same R50 000 discount is applied to this levy.
- Refuse collection - To assist the poor, the following will apply:
- Properties valued at less than R50 000 - 100% subsidy.
- Properties valued at under R100 000 - 50% subsidy (R19.30 payable for a bin or R16,80 for blackbags).
- Sewerage basic charge - This charge of R38 per improved residential property has been subsidised as is shown in the table below:
| Property Value |
Subsidy |
You Pay |
| < R50 000 |
R38 |
Nothing |
| < R75 000 |
R33 |
R5 a month |
| < R100 000 |
R31 |
R7 a month |
| < R300 000 |
R28 |
R10 a month |
| < R600 000 |
R23 |
R15 a month |
| < R1 million |
R11 |
R27 a month |
| < R1,5 million |
R8 |
R30 a month |
- Sewerage consumption charge - The first 4,2kl is free (based on 70% of 6kl free water).
- Water charge - The first 6kl is free.
- Electricity charge - The first 20 kWh is free.
- Indigent grant - To assist the poor, residential properties valued at under R100 000 will receive a R20 a month credit towards paying for sewerage and water.
HELP
All residents who experience difficulties with paying their municipal account, or who have received very high increases, can contact their local council office. Arrangements can be made to defer full payment until later in the financial year.
REBATES
| TABLE OF INCOME & REBATE % |
| Monthly Household Income |
% |
| 0 - 1200 |
75 |
| 1201 - 1300 |
70 |
| 1301 - 1400 |
60 |
| 1401 - 1500 |
50 |
| 1501 - 1700 |
40 |
| 1701 - 1900 |
30 |
| 1901 - 2200 |
20 |
| 2201 - 2500 |
10 |
| For more information, call 415-8460, or complete an application form at offices in the various administrations. |
All existing rebates to religious bodies, welfare and charitable organisations and sporting bodies will continue until further notice. The Council has also considered the following rebates:
- Elderly and disabled property owners: Applicable to property owners aged 60 years and older, and those who receive a disability grant from the Department of Welfare, with a total monthly household income of up to R2 500. Agricultural and rural properties
- Agricultural and rural properties, as well as smallholdings, used for bona fide farming, residential or nature conservation, are rated at 1,413 cents in the rand. Rebates under consideration provide that such properties valued at less than R1million will qualify for a rebate of 50% on the rates portion of their account. This excludes the solid waste levy. Those valued at more than R1million can apply for a grant in lieu of rates.
Municipal Bill Calculator
|
| Step 1 |
| Calculate the net value of your property plus monthly rates |
| Total improved value |
|
R................. |
| Deduct rebate |
- |
R 50 000.00 |
| Net Value |
= |
R................. x 0.9892c |
| Annual rate |
= |
R................. divided by 12 |
| Monthly rate |
= |
R................. |
|
|
|
| Step 2 |
|
|
| Calculate solid waste levy and refuse collection charge |
| Net value(see above) |
|
R................. x 0.0382c |
| Annual charge |
= |
R................. divided by 12 |
| Monthly charge |
= |
R................. |
| Refuse collection charge(bin or bag) |
+ |
R................. |
| Total |
= |
R................. |
|
|
|
| Step 3 |
| Calculate sewerage charge |
| Basic charge (refer to table) |
|
R................. |
| Consumption charge (refer to table) |
+ |
R................. |
| Total |
= |
R................. |
|
|
|
| Step 4 |
| Calculate water charge |
|
|
|
(refer to table) |
|
R................. |
|
|
|
| Grand Total |
|
R................. |
For more information on how to apply, contact 415-8460.
Except for rates, all tariffs must have V.A.T. added at 14%.