Housing in Southern Africa May 2016

Infrastructure & Mixed Use

‘ Budgets cannot be developed by a government alone. They should be the product of collaboration between the government and the people it represents. ’

month per household for custom- ers using less than 250 kWh per month • 25kWhelectricity freeof chargeper month per household for custom- ers using more than 250 kWh but less than 450 kWh per month • Waste removal – consumers with properties valued up to R400 000 receive pro rata rebates up to 100% • Senior citizens and the disabled will receive rates rebates, which has been increased from R12 000 to R15 000 • Indigent rates rebate for people under 60 years has increased from R5 000 to R6 000 • Households with a gross monthly income of R4 000 or lesswill receive a 100% rates rebate, The total budget proposal is approxi- mately R40 billion, (R6 billion capital budget and R34 billion operating budget). The proposed city’s directorate allocations for Capital Expenditure (CapEx) andOperational Expenditure (OpEx) include: • City Health: R1 billion in OpEx and R37 million in CapEx • CityManager: R220million inOpEx and R38 million in CapEx • Community Services: R1,8 billion in OpEx and R180 million in CapEx • Corporate Services and Compli- ance: R2,5 billion in OpEx and almost R400 million in CapEx • E n e r g y , E n v i r o n m e n - t a l and Spa t i a l P l ann i ng : R580 million in OpEx and over R60 million in CapEx • Finance: R2,2 billion in OpEx and more than R136 million in CapEx • Human Settlements: almost R1,7 billion in OpEx and over R480 million in CapEx • Safety and Security: R2,7 billion in OpEx and R111 million in CapEx • Social Development and Early ChildhoodDevelopment: R290mil- lion in OpEx and over R17 million in CapEx • Tourism, Events and Economic

Development: R568million inOpEx and R42 million in CapEx • Utility Services: R16,6 billion in OpEx plus R3,2 billion in CapEx De Lille says that in addition to future allocations, one must also consider the record of historic allocations at the level of transformative projects. Budget allocations for priority proj- ects include: • The increase of electrification al- location of R105 million this year includes backyarddwellings, com- pared to R70,8 million last year • OakdaleSwitchingStationupgrade will cost R49,2 million, after an al- location of R71,6 million last year • Street lighting in low income areas has been increased toR65,8million compared toR30,8million last year • Zandvliet Wastewater Treatment Works extension will cost R198,8 million, in addition to R135,9 mil- lion spent in the previous year • Completion of Cape Flats 3 Bulk Sewer: R112,9 million, plus the R84,5 million allocation in 2015 • Rehabilitation and upgrading of roads: R108 million in addition to R46 million last year • Traffic congestion alleviation: R118 million for 2016, plus R97 million allocated last year • Backyard dwellers and informal settlements upgrades increased fromR134million, last year the city spent R79,6 million Broadband: R222 million will be al- located for 2016, last year the city invested R191 million • A further R508 million has been allocated for the roll out of the Integrated Rapid Transit system De Lille adds that the proposed bud- get is a representation of the city’s commitment to continue making the City of Cape Town even greater. She concludes, “Budgets cannot be developed by a government alone. They should be the product of col- laboration between the government and the people it represents. It is this collaboration that gives meaning to the endeavour of making progress possible together.” ■

• Upgrade of the Athlone Stadium and City Hall • Upgrade of the Matthew Goniwe Clinic Extension • Upgrade of the Gugulethu Clinic • Roll-out of substance abuse clinics • Restoration centre for street people • New municipal courts, including Wynberg and Mitchells Plain In terms of other strategic initiatives, the city proposed an investment of R229,2 million for the Expanded Public Works Programme (EPWP) to provide job opportunities. This is despite only receiving just over R30 million from national govern- ment; as well as indigent relief of R1,1 billion for the poorest in the city; and rates and rebates relief package of R1,4 billion. There is a Social Package provision of R2,5 billion to assist some of the financial burdens experienced by low income households: • 6 kl of water per month per house- hold free of charge • 4,2 kl sanitation per month per household free of charge • 4,5 kl of water and 3,15 kl for sew- erage charges on all properties valued at R300 000 or less • 60kWhelectricity freeof chargeper

May 2016