The Independent Democrats (ID) in Cape Town called an emergency caucus on Monday to discuss the impact of the draft budget on the 406 739 households across the city.
According to caucus leader and mayoral committee member Simon Grindrod — who leads 22 Independent Democrats councillors on the 210 member council — a report by the city’s finance department detailed the actual impact of proposed increases in rates and water tariffs on communities across Cape Town.
The report reveals that 52% of households would experience increases between 15% and 50% in rates and tariffs, Grindrod said.
The ID, which is part of the multiparty administration in the city, could oppose the budget — expected to be put to councillors next week — particularly if the burden was seen to be falling on the working class community.
Grindrod said the caucus would ponder this presentation before discussing the party’s response. But he warned that an initial discussion by the caucus ”has already sounded alarm bells and they have consulted their constituencies over the weekend”.
Among the more hard-hitting statistics which emerged last week was that 64% of households valued at under R250 000 would experience increases of between 15% to 30%.
Over 7 300 of the poorest households in properties valued at under R88 000 would be paying over R150 per month more, claimed Grindrod.
On the other end of the scale, 79 243 properties valued at R500 000 and above would be hit by a 15% to 30% increase.
Grindrod said the ID had also noted with concern many representations from citizens disturbed by the outcome of the recent general property valuation exercise undertaken by the city.
The increase on the municipal account for poorer households was a direct result of the water tariff increase, he said, whereas the increase for more affluent households was as a result of the valuation. ‒ I-Net Bridge