Cape Town Rate Payers Rates To Increase From 1 July 2021
The new proposed budget would see water tariffs increase by 5%, largely due to "upgrades and extensions to the wastewater treatment plants, the installation of water connections and the testing of meters".
The electricity tariff increase will increase by 13%, the City argued, which was much less than the Eskom's hike.
All the proposed tariff increases were scheduled to take effect from July 1.
In tabling the proposed budget earlier this week, Mayor Dan Plato noted that the Covid-19 pandemic had placed a "huge strain" on residents and on the City's capacity to deliver financially sustainable services.
Cost containment measures would include zero salary increases for employees and councillors, reduced dependency on consultants and other contracted services, Plato added.
Chief financial officer Kevin Jacoby said in a statement on Wednesday that the latest increase was the lowest for a metro in the country, as far as the City was aware.
He said the cost of providing services outpaced the income it received from rates and tariffs.
"The City has experienced increases in its input costs across the board, such as from Eskom for the bulk electricity that the City onsells to its customers. Some 65% of the income from the electricity tariff goes to buying electricity from Eskom," Jacoby said.
According to Jacoby, the City made R3.3 billion available for rates and services assistance in the new financial year.
"Those severely impacted financially by Covid-19 can contact the City to find out more about the relief options available," Jacoby said.
"Interest-free payment arrangements are available for those who qualify."