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The following speech on the Draft Budget for 2017/18 was delivered by the City’s Executive Mayor, Patricia de Lille, at the Council meeting on 29 March 2017.

Good morning, goeie dag, molweni, as-salaam alaikum, shalom.

Mr Speaker,

The Draft Budget that is before Council today is truly the first of its kind for the City of Cape Town.

The 2017/18 financial year brings with it the introduction of the very first budget which has been formed on the basis of the Organisational Development and Transformation Plan (ODTP).

When this plan was introduced in August 2016, we said it was rooted in creating greater parity of services for all the people of Cape Town.

It underscores our intensified commitment to redress by directly addressing the legacy of apartheid.

It also enhances accountability by bringing government closer to the people – specifically through the Area-based Directorate and the mayor’s representatives.

The ODTP emphasises 11 transformational priorities, which are:

  1. Excellence in basic service delivery
  2. Mainstreaming basic service delivery to informal settlements and backyard dwellers
  3. Safe communities
  4. Dense and transit-oriented growth and development
  5. Efficient, integrated public transport
  6. Leveraging technology for progress
  7. Positioning Cape Town as a forward-looking (innovative), globally competitive business city
  8. Resource efficiency and security
  9. Building integrated communities
  10. Economic inclusion
  11. Operational sustainability

The ODTP also enhances transparency because this year we are able to take a draft budget to people which clearly shows how much money is being spent in each area, and also how the transformational priorities have underpinned the way we propose that the budget should be allocated.

The proposed Capital Budget for 2017/18 is R6,8 billion and the Operating Budget is R37,5 billion.

This brings us to a total of R44,3 billion for the 2017/18 financial year.

Per area, the following Capex allocations are being proposed:

Area Proposed budget 2017/18 Total over three-year medium-term revenue and expenditure frameworks
Area North R693 488 208 R2 016 447 455
Area East R709 575 648 R2 702 507 921
Area Central R573 914 321 R1 244 350 542
Area South R551 030 474 R1 064 899 813
Corporate infrastructure R675 842 237 R1 836 078 262
Multi-ward R3 613 019 743 R11 547 079 776
Total R6 816 870 631 R20 411 363 769

Capital projects in Area North include the following:

Area North Proposed budget 2017/18
Bloemhof Network Control Centre R65 662 000
City Depot CBD (new) R57 191 110
Roads, Bulk: housing projects R48 000 000
Langa Hostels CRU Project: Special Quarters R41 083 588
Upgrading Solid Waste Management facilities R32 500 000
Vissershok South: LFG infrastructure R25 000 000
Dunoon Library construction R23 158 041
Langa Hostels CRU Project: New Flats R22 271 978
Hout Bay LV Depot R22 003 010
Vissershok North: design and develop Airs R21 500 000
Plattekloof Road dualling R21 000 000

Capital projects in Area East include the following:

Area East Proposed budget 2017/18
Zandvliet Wastewater Treatment Works extension R146 313 178
Congestion relief projects R58 100 000
Sir Lowry’s Pass River upgrade R46 230 000
Steenbras: refurbishment of main plant R40 000 000
UISP: Kalkfontein informal settlement R38 000 000
Macassar BNG Housing Project R28 380 000
Somerset West Fire Station R24 435 947
Blue Downs street lighting depot R22 534 900
Cemetery developments R20 500 000
Dualling: Broadway Boulevard, Beach Road, MR27 R20 000 000
R44 Extra in-bound lane, Foundry Precinct R18 000 000

Capital projects in Area Central include the following:

Area Central Proposed budget 2017/18
Borcherds Quarry Wastewater Treatment Works R95 500 000
Bellville Wastewater Treatment Works R71 649 995
Transmission System Development R40 645 400
Parow depot upgrade R36 206 000
Road rehabilitation: Hanover Park Phase 2 and Phase 3 R35 000 000
UISP: Agste Laan, Valhalla Park R33 000 000
Upgrading of drop-off facilities R26 800 000
Park Upgrades Programme R25 600 000
Roads: rehabilitation R19 950 000
Development of landfill infrastructure R18 780 000
ARTS: material recovery facility/MBT R17 173 000

Capital projects in Area South include the following:

Area South Proposed Budget 2017/18
Kommetjie Road dualling and Ou Kaapse Weg R66 000 000
Land acquisition for municipal purposes R52 850 000
IRT Phase 2A R50 000 000
Grassy Park Main Substation upgrade R48 500 000
IDA/UISP Sweet Homes, Philippi R35 000 000
Coastal Park: design and develop (MRF) R27 127 000
Noordhoek LV Depot R25 987 400
Upgrading Solid Waste Management facilities R21 240 000
New Pelican Park Clinic R18 268 188
Replace and upgrade water network R16 500 000
Retreat public transport interchange R15 000 000

Our proposed rates and tariff structure is as follows:

  • Rates: an average of 5% – down from 6% last year
  • Electricity: an average of 3,34% – down from 7,78% last year
  • Refuse: an average of 6,51% – down from 7,92% last year
  • Disposal: an average of 8,32% – down from 12,08% last year
  • Water: an average of 19,25% – up from 9,75% last year

While there is a proposed tariff hike of 19,75%, this is a year-on-year increase for Level 1 water and sanitation tariffs.

Due to the increase imposed since the implementation of water restrictions, residents have already been paying more at the Level 2 and Level 3 reduction tariffs.

Due to refinements in the pricing model for Level 2 and 3 reduction tariffs, the proposed increase at the Level 3 reduction tariff (currently being applied) actually only varies between 1,4%, 5,85% or 7,33% on the Domestic tariffs, depending on the amount of water being used.

Only those using in excess of 50 kl will see a 19,19% hike in July 2017 if the proposed rates are approved in May.

While the hike in the water tariff is considerate, the current drought crisis has heavily impacted the provision of this service.

We have to continue our aggressive capital programmes to ensure water security, implementation of augmentation schemes, extensions to wastewater treatment plants, appropriate capacity levels, and asset replacements programmes to ensure proper asset management.

The severity of the drought necessitates the acceleration of our repairs and maintenance programme as well as staffing strategy to ensure that service delivery and responsiveness expectations are being met.

Despite comments from the National Government calling our poverty alleviation programme ‘overly generous’, we continue to provide assistance to those who need it most.

Residents who qualify for social package assistance are exempt from these tariff increases.

The total cost of the social package for the 2017/18 financial year amounts to approximately R2,7 billion, which is up from R 2,5 billion last year.

Indigent relief for the most vulnerable has been increased from R1,1 billion to R1,3 billion.

Rates rebates worth R1,4 billion will be made available.

The proposed social package to assist in relieving some of the financial burden experienced by poor households is as follows:

  • Any household with a gross monthly income of R4 000 or less will get a 100% rates rebate
  • For the indigent rates rebate for persons younger than 60 years, the maximum monthly household income is R6 000
  • For the senior citizen and disabled person rates rebate, maximum monthly household income is R15 000
  • 60 kWh of electricity free of charge per month per household for those using less than 250 kWh per month
  • 25 kWh of electricity free of charge per month per household for those using more than 250 kWh but less than 450 kWh per month on average with a property value of R400 000 or less
  • Waste removal: consumers whose properties are valued between R1 and R400 000 receive rebates between 0% and 100%
  • Waste removal: qualifying indigent applicants receive between a 0% and 100% rebate as per the criteria set out in the Credit Control and Debt Collection Policy
  • Additional 4,5 kl of water, including sewerage charges, for all properties valued at R400 000 or less

These benefits remain unchanged after we extended the qualification criteria last year.

The only two proposed changes are therefore as follows:

  • Firstly, previously all households received 6 kl of water per month/household free of charge. For 2017/18, the proposal is that 6 kl of water is only free for properties valued at less than or equal to R400 000
  • Secondly, previously all households received 4,2 kl sanitation per month/household free of charge. For 2017/18, the proposal is that the 4,2 kl sanitation is only free for properties valued less than or equal to R400 000

However, those who do not qualify for indigent assistance will only pay R4/kl (excl. VAT) for the first 6 kl of water. They will also only pay R3,85/kl (excl. VAT) for the first 4,2 kl for water used for sanitation. This is part of a phased approach to ease the current strain on residents’ pockets.

Some of our proposed 2017/18 Operating Budget highlights include:

Social Services:

  • R5,5 million for the Nutrition Programme to address malnutrition in the Western Cape
  • R2,8 million to organisations assisting street people through diversion, skills development, and shelter programmes
  • R4 million for EPWP opportunities linked to the above
  • R217 million for the HIV and AIDS Programme, to sustain health and wellness, prevent new HIV victims, and prevent STI and TB infections
  • R943 million for personal primary healthcare services

Informal Settlements, Water and Waste Services:

  • R11,4 million for the apprenticeship (trade-orientated training) programme to preserve institutional knowledge within the Solid Waste Management Department and the Water and Sanitation Management Department
  • R20 million in order to increase the separation of recyclable waste from the organic waste at formal residential properties
  • R28,4 million for capacitating the asset management function, first-level response teams, water management device teams, sewer teams and the associate dispatch teams to improve responsiveness
  • R39 million to ensure enhanced and proactive maintenance
  • R50 million provision for future infrastructure projects


Transport and Urban Development Authority:

  • R497,6 million for the construction of 3 153 top structures
  • R30,9 million for  the Glenhaven Social Housing Project
  • R629 million for ongoing roads, stormwater and traffic signals maintenance
  • R284 million for metro and local road reseal to address the mounting backlogs
  • R134 million for river, stream, canal, and gulley cleaning and maintenance of stormwater systems
  • R583 million to provide affordable alternative road-based public transport
  • R54,5 million for security at the 50 public transport interchanges
  • R17,8 million for cleaning services at 55 public transport interchanges, i.e. cleaning of toilets during operational hours, chemical toilets, and sanitary services to ensure compliance with basic health and safety standards


  • R20 million provided for artisan posts in order to accommodate apprentices being trained within the directorate
  • R30 million for new sustainable energy markets
  • R32 million for additional Eskom connections (Pinotage and Oakdale)

Corporate Services

  • R5,5 million for external bursaries
  • R6,7 million for leanerships
  • R9,9 million for apprenticeships

This is to provide financial assistance and opportunities to those in need from our communities, while addressing the need for specific scarce skills within the City.

We are looking forward to young residents taking up these opportunities, as we do our part to ensure that youth are afforded opportunities to uplift themselves and their families out of poverty.

Another catalytic project in this vein is the Mayor’s Job Creation Programme. This is a separate programme from the Expanded Public Works Programme, which will continue to be funded by the R30 million we receive from the National Government.

The Mayor’s Job Creation Programme will differ in that it will have increased funding into skills development or capacity-building programmes that will enable participants to exit the programme into formal employment more confidently. R340 million has been made available for this programme.

We have some exciting pilot projects coming up which are sure to improve service delivery and enhance economic inclusion. More details on these projects will be shared in due course.

Some other key capital projects include:

  • New ECD centres in Strand and Heideveld to assist with development of children in poor communities: R16,2 million
  • New clinics in Fisantekraal and Pelican Park to provide a one-stop service: R22,9 million
  • IT modernisation to render integrated, streamlined and efficient business processes e.g. booking and reservation systems at community facilities and appointment systems at City clinics: R5 million
  • Upgrade of the Manenberg Precinct and integrated parks projects: R18 million
  • Continuation of broadband roll-out to build a metro area telecommunications network to serve the needs of the City, residents and businesses: R260 million
  • Upgrade of informal markets and facilities to contribute to the City’s strategic objective to create opportunities for growth and jobs: R3,8 million
  • Ongoing roll-out of the IRT Project: Phase 2A to the Metro South-East, linking Mitchells Plain and Khayelitsha to the Wynberg and Claremont public transport hubs: R462,6 million
  • Public transport interchange programme, which includes allocations for development and/or upgrading of inner-city and Bellville public transport hubs, Retreat and Somerset West public transport interchanges, Makhaza bus and taxi facilities, and the Dunoon and Masiphumelele taxi facilities: R108,7 million
  • Congestion relief – ongoing projects include the dualling of Kommetjie Road, Plattekloof Road, Broadway Boulevard and Jip de Jager Drive: R239,6 million
  • Roads rehabilitation programme to upgrade existing concrete roads in Hanover Park, Heideveld, Gugulethu, Bonteheuwel and Bishop Lavis: R131,1 million
  • Construction of civil and electrical infrastructure for the establishment of an Informal Settlements Programme in Kalkfontein informal settlement: R38 million and Sweet Homes, Philippi: R35 million
  • Installation of water dispensing and management devices in City rental stock units as part of the Backyarder Programme: R15,2 million
  • Informal settlements sanitation installation: R22 million
  • The electrification programme to provide subsidised connections to informal settlements and subsidised housing development will continue in areas such as Manenberg, Gugulethu, Valhalla Park, Bonteheuwel, Langa, Mfuleni, Strand, and Atlantis: R60,5 million
  • Install electricity connections directly for backyarder dwellings at Council rental units – current areas targeted are Kalksteenfontein, Bonteheuwel, Newfields, Hanover Park and Parkwood: R50 million

Mr Speaker, over the next few weeks, we will be presenting this draft budget at two meetings each in all four quadrants across the city.

I really want to make an appeal to all residents to exercise their civic duty and give us their input.

I want the public to remember that even though the City is the custodian and I am the accounting officer, this is their money.

To all councillors and subcouncils, I also request that you consult with your communities at the budget presentations that will be held at subcouncil meetings.

I am looking forward to your valued input so that we can all work together to make our great city even greater.

I hereby table the budget for public participation.

Let us continue to make progress possible, together. Laat ons vooruitgang moointlik maak, tesame. Senza inkqubela yenzeke, Sisonke.

Thank you, baie dankie, enkosi.

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