‘Budget of 2 cities’ lashed

Mayor Patricia de Lille

Mayor Patricia de Lille

Published May 25, 2016

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Quinton Mtyala

THE City of Cape Town boasted yesterday it had contained rates and tariff increases in its new budget, but opposition parties have slammed mayor Patricia de Lille’s administration for spending plans they say benefit only a select few.

De Lille, presenting her fifth budget, announced that of the City’s total budget of R41 billion:

l Rates across the City on average would increase by 6%.

l Refuse collection would increase by 7.92%.

lTariffs for sanitation increase by 9.75%.

l Water tariffs increase by 9.75%.

l Electricity will on average rise by 7.78%, but domestic users will see only a 6.6% hike.

lDisposal remains un-changed at 12%.

De Lille said the City’s budget would be spent on additional provisions like easing road congestion; investment in the City’s CCTV camera network; buying new fire engines; rolling out substance abuse centres; and three new municipal courts in Wynberg, Blue Downs and Mitchells Plain.

The City’s relief for the poorest households will amount to R1.1bn, while rates rebates will come to R1.4bn.

Broken down, this means poor households will receive six kilolitres of water for free each month; 4.2 kilolitres for sanitation; 60kWh of electricity free of charge for households using less than 250kWh per month; and 25kWh free of charge for those households which use more than 250kWh but less than 450kWh each month.

De Lille had harsh words for the Social Justice Coalition (SJC), which has been advocating particularly for improvements in the City’s provision of sanitation in informal areas.

She said the SJC was not representative and only worked in “certain parts of Khayelitsha”, and did not include other communities or those living in backyards.

De Lille argued the City could not install “full-flush” toilets on privately owned land, in areas of extreme high density, beneath power lines, landfill sites, along railway lines and road reserves.

“Up to 82% of informal settlements are either fully or partially affected by one or more of the abovementioned constraints,” said De Lille.

The City’s Utility Services directorate gets the largest chunk of the budget with R16bn on its operational budget, while R3.5bn goes on its capital expenditure programme for 2016/2017.

In response, ANC caucus leader Xolani Sotashe criticised the budget, saying it was one of “two cities”, one for the poor and one for the rich.

“The only way to measure whether this city is becoming a truly South African city is the change so desired in the material well-being of the previously marginalised, predominantly coloured and African (communities),” said Sotashe.

He criticised the DA administration, saying it had not worked to eradicate poverty “as quickly as possible”.

ANC councillor Bheki Hadebe said the City had failed to spend its meagre budget allocations for areas like Imizamo Yethu in Hout Bay.

And while the City had spent millions on the MyCiTi bus rapid transport system, Hadebe juxtaposed this with “open drains” in Khayelitsha.

Hadebe said Cape Town was the second largest spender of any metro, with R1.4bn allocated to its transport, roads and stormwater capex budget.

“However, it is very disturbing to note that this allocation has been reduced to R208 million. It is also disturbing to note that the portfolio being led by Brett Herron has only been able to spend R950m,” said Hadebe.

The man who has drafted Cape Town’s budgets for the last decade, deputy mayor and Mayco member for finance Ian Neilson, boasted about the City’s financial performance, saying it had 12 years of unqualified audits and four years of clean audits.

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