Following widespread backlash over tariff adjustments in March’s budget, the City of Cape Town recently tabled an amended municipal budget with additional relief measures for property owners.
As we reported, the City’s hotly contested water and sanitation tariff changes and the introduction of a city-wide cleaning tariff – based on the value of property – would have resulted in significant monthly municipal bill increases for property owners.
After receiving more than 14 000 submissions in response to the proposed tariff adjustments, the City’s revised budget contains several substantial relief measures for ratepayers.
These measures include:
- Extending the first R450 000 rates-free benefit to all residential properties with a valuation not exceeding R7 million.
- Lowering fixed water charges for properties valued between R1 million and R25 million.
- Reducing city-wide cleaning charges for residential properties valued at less than R20 million.
- Introducing a pensioner rebate (up to 100% of the charge) for city-wide cleaning.
- Increasing the qualifying monthly household income threshold for pensioners from R22 000 to R27 000, irrespective of property value.
In tabling these reforms, which have been welcomed by numerous stakeholders, the City has attempted to balance the demands of property owners with the need to ensure financial stability as it embarks on expansive infrastructural improvements.
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