LETTER TO THE EDITOR: Cape Town mayor can learn from finance minister's budget
Cape Town Mayor Geordin Hill-Lewis should table a revised Draft Budget and deliver a Budget that is realistic, linked to the CPI of 4.5%, to make it affordable to ratepayers, says the writer.
Image: Phando Jikelo
EXAMINING the history of the growth in the City of Cape Town budgets, it can clearly be seen that since 2021/22 Budget growth picked up substantially. The Capital Budget grew from a modest R3.7 billion to a humongous R12.7 billion in only four years.
Taken against the South African economy which has a growth rate of 1.4% (revised down from 1.9%) the City’s Budget growth of around 9% per year, is totally out of proportion with the rest of the country. In the latest National Budget the minister announced that future grants to municipalities will be lower due to National Budget constraints.
Yet, the Mayor of Cape Town will not budge on his aggressive Capital Expansion for future projects.
In the light of the national government's financial constraints, a Metro like the City of Cape Town simply cannot continue as if it is not part of the larger country.
The disastrous results of this Mayor's lack of strategic vision, are clearly visible after the latest Budget fiasco with the COCT Draft Budget for 2025-26. Ratepayers have reached the end of their ability to absorb the ever increasing number of fixed charges the City introduces to fund their ambitious expansion plans.
The link to property values which creates an exponential rate of tariff increases can simply not be implemented in this tight fiscal environment of national growth of only 1.4%.
On 28 May 2025, the Mayor should therefore table a revised Draft Budget and deliver a Budget that is realistic, linked to the CPI of 4.5%, to make it affordable to ratepayers.
The new fixed charges must be removed and above all, an alternative to the link to property values to determine the water fixed charge must be found. (A simple flat rate as what is applied for electricity is suggested.)
The Mayor should demonstrate the same restraint as what was shown in the national budget. The finance minister was forced through effective opposition in a GNU where no single party had the majority to push through what it wanted.
Sandra Dickson | STOP City of Cape Town