Cape Town's municipal bills: Rising costs and proposed relief measures
Image: Armand Hough / Independent Newspapers
Following public criticism over sharp increases in monthly bills, particularly among residents in the R4 million to R7 million property range, Cape Town Mayor Geordin Hill-Lewis has announced the City is considering new measures to cushion the blow of rising municipal bills in its R39.7 billion 2025/26 draft budget.
Speaking on Cape Talk, Hill-Lewis said that while the budget prioritises relief for properties under R2.5 million, the City is modelling expanded rebates for homeowners with properties valued up to R7 million.
'The criticism that I've heard, and which I really wholeheartedly accept, is that not everyone in the R4m–R7m property band is wealthy, or cash-flush,' Hill-Lewis said.
'You may have bought your home a long time ago, you've paid it off, now you have a very valuable home, but you don't have the income to match it.'
Relief measures under consideration include: Extending the current R450 000 rates-free benefit beyond the R5 million property value cap;
Increasing the income threshold for pensioner rebates (currently set at R22 000/month);
Reducing new City-Wide Cleaning charges for properties between R2.5 million and R7.5 million.
In a notable shift, the City cut Eskom's 11.32% electricity price hike to 2% for most households.
This is enabled by removing the 10% electricity surcharge that previously funded other City services, now replaced by a ring-fenced cleaning tariff.
While this tariff reform led to higher bills for some mid-range properties, Hill-Lewis argued that the electricity savings should significantly offset those increases.
'Total bill increases can drop dramatically when taking electricity usage into account due to the major price relief in Cape Town,' he said.
New water and sanitation tariffs will bring lower or minimal increases for 140 000 lower-income homes.
Meanwhile, 250 000 properties under R500 000 continue to receive free basic services, the highest allocation among SA metros.
Fixed charges will now be linked to property value, rather than connection size, to ease pressure on lower-income households.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
2 hours ago
- IOL News
SA sugar industry set for improved harvest; yet tariff uncertainty threatens the sector's future
SA Canegrowers says South Africa is currently experiencing a surge in deep-sea sugar imports. Much of this imported sugar is heavily subsidised in its country of origin, arriving in South Africa at a price far below local production costs undercutting local growers' sugarcane revenue and their financial sustainability. Image: Karen Sandison/Independent Newspapers Higgins Mdluli South Africa's sugarcane growers are expecting a significantly improved harvest this season, following a rebound in rainfall after last year's drier-than-normal conditions. The current estimate for the 2025 season stands at 17.7 million tons of sugarcane, up from 16.47 million tons in the previous year – which was the lowest crop in eight seasons. While this recovery in yield is welcome news, the industry's economic outlook remains under serious threat due to delays in adjusting South Africa's import tariff, the flood of cheap imports into the country and the looming 30% tariff from the United States on South African sugar exports. The delay in adjusting our own sugar import tariff to reflect current global realities is undermining the competitiveness of local producers. At the same time, the US tariff threatens our access to what has historically been one of our key premium export markets. South Africa is currently experiencing a surge in deep-sea sugar imports. Much of this imported sugar is heavily subsidised in its country of origin, arriving in South Africa at a price far below local production costs undercutting local growers' sugarcane revenue and their financial sustainability. Importers in South Africa are taking advantage of the gap between the current import duty and the level that should be in place, as provided for in legislation. However, the large amounts of cheap sugar entering South Africa do not benefit consumers - importers continue to sell at local retail and industrial prices, increasing profits at the direct expense of local farmers. SA Canegrowers represents over 24 000 small-scale and 1 200 large-scale sugarcane growers in South Africa. These growers provide jobs and economic stability in rural Mpumalanga and KwaZulu-Natal, in areas where opportunities are scarce. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Unrestrained sugar imports displace local product from shelves or as input for local commercial users, which lowers domestic sales. This lower level of local sales forces the industry to export more sugar at a significant price disadvantage. In 2017/18 and 2018/19, a similar delay in enacting fair import tariffs – as per South African government regulations – meant the South African sugar industry had to export large volumes of sugar to a highly distorted international market leading to significant financial losses for the industry. A repeat of this scenario will lead to job losses, as growers are also already facing many other threats, including the sugar tax and rising input costs. The South African sugarcane industry produces sufficient sugar to meet all demand in the Southern African Customs Union (SACU) and still have excess volume to export. With production levels back to normal, but with supressed local demand due as foreign sugar that displaces local sugar, more sugar will have to be exported at a considerable loss this year. This year, the global trading environment is even more uncertain. The likelihood of a 30% tariff on South African products entering the US, at least for the time being, further disadvantages South African sugar on the global market. We urge government to move swiftly: to revise the import duty in line with current global prices and to prioritise a new trade agreement with the US that safeguards our export potential. Higgins Mdluli is the chairman of SA Canegrowers. Image: Supplied * Higgins Mdluli is the chairman of SA Canegrowers. ** The views expressed do not necessarily reflect the views of IOL or Independent Media. BUSINESS REPORT
IOL News
5 hours ago
- IOL News
KZN Department of Transport takes action: Multiple road contracts at risk of cancellation
The KZN Department of Transport says it may cancel multiple road construction contracts due to poor performance by contractors. Image: Doctor Ngcobo / Independent Newspapers The KwaZulu-Natal Department of Transport has cancelled two contracts, one of which was valued at over R80 million, and is on the verge of cancelling several other contracts due to poor contractor performance. These contractors could also face penalties and recoveries for failed projects, the department warned. The department said 30 contracts are at risk of cancellation due to the poor performance of the awarded contractors. Transport MEC Siboniso Duma warned that the cancellation of contracts is just the beginning for contractors who fail to deliver. The department declined to comment on how much the contractors were paid for the two contracts which have been cancelled. It said it will first need to assess how much work has been done. 'We have projects that are underway, valued at R5 billion. What we want is value for money from those projects,' Duma stated. Duma confirmed the termination of a contract for the construction of road P577-02, which links Cowie's Hill and New Germany to the M13 and M19. The R87.8 million contract was awarded to a contractor on 9 June 2023, with work beginning on 2 August 2023. The project was due to be completed by 24 May 2024. However, more than 14 months later, Duma said the contractor had failed to make adequate progress. In his recent budget presentation, the MEC disclosed that over R3.8 billion would be allocated for constructing new infrastructure projects, while over R4.3 billion would be dedicated to maintaining the road network. Duma emphasised the importance of instituting recoveries against companies that fail to deliver. 'The failure is not just disruptive to service delivery; it is very costly to the department. If the contractor fails, we have to start the process of awarding all over again, which is time-consuming and expensive. That's why we must impose penalties and institute recoveries.' The department stated that the backlog in road infrastructure necessitates a strict approach towards contractors who do not complete projects on time. It believes that naming and shaming these contractors will serve as a deterrent for future contractors. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Currently, the department has a total of 39 active construction projects and 44 rehabilitation/resealing projects. 'There are 30 contractors from the Construction Industry Development Board (CIDB) grade 6 to grade 9 who are failing to complete capital projects on time across the province. Some projects have stalled, while others have been abandoned, with instances where site establishment has not even commenced. 'Engagements with these contractors have revealed that many face resource challenges, particularly cash flow issues. Other cited challenges include scope creep, which tends to increase once contractors are established on-site. Surprisingly, even long-established contractors with years of experience are among those failing to deliver,' the MEC stated. Duma added that these established contractors often take on too many projects simultaneously, which negatively impacts all their ongoing projects. When cash flow problems arise in one project, it affects other projects they are managing for the department. 'Contractors who fail to adhere to the new timelines will be terminated. The department has already identified contractors who are unlikely to complete their projects in the foreseeable future, necessitating their termination. 'Furthermore, the department will follow the necessary legal procedures to blacklist these contractors from future work with the department, which could last up to ten years. In addition, the department will take steps to recover funds due to the failures of these service providers. The MEC has directed that the supply chain management process be strengthened, including thorough vetting of contractors before hiring to ensure they have the requisite capacity. In some cases, contractors lack essential equipment, such as fleet (plant equipment),'Duma concluded. Professor Pundy Pillay of the Wits School of Governance stated that the government was justified in terminating contracts of individuals who are not performing. 'You can't have a situation where people are paid when they have not done the work. Everyone will take the money and not do the work,' he remarked. He added that the government complicates matters by not paying contractors on time. There should be a structured arrangement for payments, and these payments should be linked to the progress that has been made. Pillay expressed concerns about the recoveries threatened by the province, suggesting they are unlikely to yield results. 'That money spent on contractors is taxpayer money down the drain,' he concluded. Riona Gokool, the DA KZN spokesperson on Transport, raised concerns that the department has not been paying contractors on time, which has contributed to their negative performance. She said the department's failure to honour contractor payments has a devastating impact not only on small businesses and emerging contractors but also on job creation and community development, which are key pillars of its mandate. Mncedisi Maphisa, the chairperson of the Transport Portfolio Committee, said that the actions of the MEC have the committee's full support. 'Our job is to ensure service delivery, not to please service providers. If the MEC has done all he can to capacitate the contractor and that contractor still fails, we support the termination of such contracts. That must not only end in this field; all service providers in the department that are not performing should be dealt with,' he stated. THE MERCURY
Eyewitness News
18 hours ago
- Eyewitness News
CoCT invested R9.5 billion in infrastructure in 24/25 financial year, says Hill-Lewis
CAPE TOWN - Cape Town Mayor Geordin Hill-Lewis said the city had invested R9.5 billion in infrastructure in the 2024/2025 financial year, an all-time record for a South African metro. Hill-Lewis said that the money spent represented 92 percent of its full infrastructure budget. The mayor addressed the city council on Wednesday, saying that the only way for Cape Town to avoid some of the crises in other South African cities was to invest in infrastructure at a higher level. "It's one thing to announce new record infrastructure budgets every year, in our quest to invest in a better city, but those records mean little if the budgets just stay as numbers on a page. They actually have to be spent." Hill-Lewis told council that spending the allocated budget was no easy task. "I'm very pleased to let you know that our city spent 92.3 percent of our capital budget ... that is R9.5 billion." The mayor said that the safety and security directorate had the best percentage, with 99 percent of its R472 million budget spent.
