Posted by: Saving Water SA (Cape Town, South Africa) - partnered with Water Rhapsody conservation systems – 31 March 2010

The Executive Mayor of Cape Town, Alderman Dan Plato, has tabled a draft budget proposing an increase of the operating budget by 14% to R19.3 billion. The capital budget declines to R3.55 billion from R5.59 billion, as 2010 World Cup funding comes to an end and future borrowings are limited.

Tariff increases include average increases of 24,6% for electricity, 10% for water and sanitation, and 18% for refuse collection.

“The significant jump in electricity prices is inevitable because of the 28.9% Eskom bulk tariff increase to local government,” says Alderman Ian Neilson, Executive Deputy Mayor and Mayoral Committee Member for Finance.

“The significant increase in refuse collection tariffs is due to the closure of older refuse disposal sites and the subsequent need to transport refuse over much further distances than before. It also provides for a significant replacement of refuse collection trucks.

“The latest general valuation has increased the total property valuation by 27% to R805 billion. However, the total required increase in rates income is only 9.3%, leading to a reduction in the rate to 0,531 cents-in-the-rand. The initial value deduction has been increased from R88 000 to R200 000,” he says. Continue reading Cape Town proposes budget increase of 14%