The changes made by Cape Town Mayor Geordin Hill-Lewis to soften proposed tariff increases does not adequately address the public outcry over the massive increases the City’s draft budget will bring about to total municipal bills come 1 July.
This is the view held by civic activist and founder of Stop CoCT Sandra Dickson.
In response to the mayor’s announcement last week, Dickson in a statement to the media made commentary saying these reliefs placates public outcry while leaving the real problems untouched.
“The Mayor does not recognise the multiples of the inflation rate (4,5%) bills are increasing by. This increase is mostly the result of the fixed charges. The overall increase in municipal bills even after these changes are 5 – 24% as a result of the proposed draft budget. He makes mention of the ‘softening’ of the cleaning tariff cross-subsidisation, but with no concrete numbers or real indication of how much relief this will bring.”
According to Dickson the extension of the rates rebate for properties to R7 million cuts the effect on bills by about R250 a month for some homeowners, but remains a paltry concession compared to the overall massive hikes of up to 24%.
She says the increase in the pensioner rebate income threshold from R22 000 to R27 000 monthly allows more pensioners to qualify, but that it is not clear how meaningful this relief will be.
“Based on calculations made by Stop CoCT on the City’s now adjusted rates calculator, under R1,5 million property owners now actually pay a bit more, while the decrease for those above R1,5 million is below expectations.
Above inflation
In general, overall increases to municipal bills is still above the 4,5% inflation rate and in the range of 5 – 24% plus, she says.
“Three out of the four fixed charges – water, sanitation, and cleaning, remain intact and are explicitly linked to property values rather than proportional reflection of the City’s cost. No attention is given to the requirement by law that these fixed charges have to be proportional to the City’s actual fixed costs.”
These concerns were among the topics discussed at a meeting representative of several ratepayers’ organisations held in Pinelands last Wednesday. Attendees were visibly unhappy, and the possibility of civil action was raised, according to a feedback report. In closing she states that the changes offer no serious solutions, limited alternatives, and no real empathy for the financial burden placed on homeowners struggling to keep up.
“The (Mayor’s statement) ignores the fundamentally unfair system of charging fixed fees based on property values which the City determines and control. This approach punishes those who have made genuine efforts to reduce consumption by installing solar panels and water-saving devices. This mean nothing when your bill is dictated by your home’s market price.”
In a separate statement City spokesperson Luthando Tyhalibongo, said an extensive public participation process has been conducted in excess of the 30-day period specified in the Municipal Property Rates Act.
“Following the closure of the public comment period on 2 May, comments received via public participation processes will be collated, considered and responded to. Council is bound by legislation to adopt a new financial year budget along strict timeframes of no less than 30 days before the starts of the new financial year on 1 July as per Section 24(1) of the Municipal Financial Management Act. Council will consider the adoption of the City’s budget at its meeting of 29 May.”
