Cape Town rates: 'Expanded relief measures will lead to lower monthly bills compared to original budget'

The City of Cape Town has tabled expanded rates relief measures and other changes to the proposed ‘Invested in Hope’ Budget for 2025/26., following widespread outrage over the decision to link property values to utility fees.

The public has the opportunity to comment until 13 June.

Mayor Geordin Hill-Lewis said the City had listened carefully to Capetonians during the initial public participation phase, and that changes to the budget will result in 'meaningfully lower increases' to bills.

"The (original) March budget was designed to protect families living in lower value homes in particular, and was deliberately designed to cross-subsidise this protection from higher value homes. The proposed amendments tabled today preserve that protection for families in lower value homes, but also considerably soften tariffs for the middle class whose feedback and concerns we heard."

Geordin Hill-Lewis, Cape Town Mayor

In conversation with John Maytham, Hill-Lewis ruefully acknowledges that many residents will likely still be upset with the new, adjusted increases, but says they have tried to ameliorate some of the steeper increases as best they can.

"We've trimmed a significant chunk off that city-wide cleaning tariff and we've trimmed a smaller little chunk off the fixed water charge."

Geordin Hill-Lewis, Cape Town Mayor

"And we found a way to do that without compromising too much - we've actually trimmed a little bit from the capital budget, but without compromising too much on those essential infrastructure investments."

Geordin Hill-Lewis, Cape Town Mayor

Looking at the hard numbers of the increases property owners will have to pay from 1 July, the Mayor cites some examples to illustrate his point.

"On a property of R7-7.5 million you'll pay R485.77 more, all the way up to R9-9.5 million it's R645.80 more. People often quote these scary-sounding percentages but the real figures I think are very manageable for MOST people."

Geordin Hill-Lewis, Cape Town Mayor

"We are trying to balance these pressures; most importantly we're trying to fund an enormously and yes unapologetically ambitious infrastructure programme because we really believe Cape Town needs it... and most residents would agree."

Geordin Hill-Lewis, Cape Town Mayor

Here, Hil-Lewis highlights the stress on Cape Town's water grid, sewer grid and road network which all need to be addressed.

He also points out that a full 50% of the City's budget is actually decided by the South African Local Government Bargaining Council in the form of salary increases and Nersa in the form of electricity increases.

Scroll up to the audio player to listen to the interview, and click here to read more detail about the proposed budget amendment measures