City avails R3,4 billion to help residents in need

31 March 2021

The City of Cape Town has made R3,4 billion available to help qualifying residents with rates and services relief as part of its Tabled Budget for 2021/22. The City continues to protect its residents and ratepayers as much as possible from rising costs, especially from Eskom’s massive price increase and to do this, extensive budget cuts have been made, most notably some R460 million has been cut on staffing and contracting services, while safeguarding basic service provision.

R1,4 billion for property rates relief.
R2 billion for indigent relief.
R8,4 billion strong capital budget to help boost local economic recovery to improve lives and livelihoods.
R460 million savings in staffing and contracting services costs and again, no performance bonuses for senior staff and management.

The City’s Budget for the 2021/22 financial year has been tabled in Council for public participation. The City has extended the comment period until 3 May 2021. Members of the public are encouraged to comment on the Tabled Budget from 1 April to 3 May 2021.

The City has achieved its 17th unqualified audit as per the Auditor-General.

Covid-19, weak economy, Eskom impact
‘The Covid-19 crisis, Eskom’s steep electricity increase of 15,06%, a very slow economic recovery and the general state of the national economy as well as the national government purse, are some of the biggest factors impacting the City’s R56,4 billion budget.

‘Looking ahead over the medium term, this Budget was prepared with the intention of keeping rates and service charges to the bare minimum to assist already struggling residents, communities and businesses. This, through profound cost cutting, savings and using internal funds to cushion residents. The City’s electricity tariff is proposed to increase with 13,5% from 1 July 2021. This is directly as a result of Eskom’s steep price increases. The City has done its utmost to absorb these increases, however, over the years, we have already made our energy operations very efficient, so there is not too much room for manoeuvre and the City can’t wholly absorb such high increases, bearing in mind that 65% of the City’s tariff income is used to buy bulk power from Eskom.

Doing more with less
‘The R683 million in savings achieved over the last budget period, will be used to offset the continued additional Covid-19 costs. We have focused much energy on closing down the income-expenditure gap to put the City on a more sustainable footing for the future. I know that driving such savings has not been easy for line departments. Our residents have high expectations of delivery from the City. Rightly so, and their historical experience of high levels of service from the City has given them certain expectations.

‘With a tightening of the belt, while at the same time experiencing a growing population to service, it is tough. However, emergencies also bring new ideas and experiences. So innovation is driven to achieve more with less,’ said the City’s Mayoral Committee Member for Finance, Alderman Ian Neilson.

Saving highlights

R460 million in staffing and contracted services
Training budget halved
Again, no performance bonuses for senior staff and management

www.capetown.gov.za/budget

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End

Published by:
City of Cape Town, Media Office

budget Council