COCT BUDGET 2019

The City of Cape Town has asked for your input on the proposed tariff increases in the draft budget 2019/20. Please use the form below to add your name and comment.

If you object or support the budget, please give a reason why. Should you be at a loss for words, read the summary, live input or documents below the form. Feel free to copy and paste into the message area provided. If you don’t take any action, your inaction will be regarded as tacit agreement.  Closing date is 24 April 2019

SUMMARY

PROPERTY VALUATION and RATES

The 2019/20 Budget tabled on 28 March 2019 has changes to the way property rates will be calculated in future.
There is an increase from the point where property rates start to be payable. It was increased from R200 000 to R300 000. The Rate in Rand was lowered from 0.007154 to 0.00555. It represents a 22% drop in the Rate in Rand rate.
The nett effect of these changes is that properties that had a property valuation (GV2018) increase of 30% will be paying the same rates as before. Lower than 30% property valuation will see a decrease in property rates. Those with a property valuation increase (GV2018) of more than 30% will progressively see an increase in their property rates bill.

Table of new Rate in Rand Rates:

WATER TARIFFS

The Water Levy (Pipe Levy) and structure to calculate it remained the same. However, the block structure for the way water is charged was changed.
The block structure was changed and Level 3 Water Restriction is Now Level 1  (In effect they renamed the Levels and Level 3 has now become Level 1).   The Water tariff will, therefore, increase from R12.85 for Level 1/Kl to new Level 1 which is R14,91 per Kl.      This represents a 16% increase. The City says the Water Tariff increase was 8.88%.
This change in the block structu
re is a stealth way to increase the Water Tariffs by 16% and calling it an 8.88% increase. 

ELECTRICITY

The Electricity Levy was increased from R150 to R163.32.  (8.88% increase).
Direct Eskom supplied customers still pay less than COCT supplied customers. (28% Cheaper)
Home User Tariff is applicable to the following consumers:
– Credit meters
-Prepayment meters installed at a property valued more than R1m

Domestic Full
-Prepayment meters for properties between R400 000 and R999 999

LIFE LINE
-Prepayment meter installed and a property value of less than R400 000

PENSIONERS

Pensioners received no further rebate than in the past in this Budget.
Pensioners earning less than R15 000 per month can apply for the same stepped rebate in their property rates as before.
Please suggest ways in which the City can assist Pensioners to cope with their municipal utility Bills.

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I understand that property rates are based on valuation of property. The city needs to collect rates to deliver services to its residents. What I would like to know is by how much more in total is the city collecting in rates after the new valuations. My gut feeling is this must have increased significantly as my rates went up by more than 50%. If the overall collection is anything higher than 10% it is unjustifiable as this would be in way excess of inflation. However, I am yet to met anyone whose rates have not increased by less than 20% so I would think that the overall increase must be north of 20%! Can the city disclose by how much it has inflated the total rates collected so that we can judge whether it is fair? Remember by taxing the residents more the city is taking money out of the economy and limiting economic growth. The city is very unproductive in spending its revenue collected and is far better leaving the money in the economy for the economy to grow and create more employment.
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DOCUMENTS

Download the Draft Budget 2019/20
Download the budget presentation
Download the Public Meeting Schedule