Executive Mayor of Cape Town, Geordin Hill-Lewis, tabled
the City of Cape Town budget for the 2025/26 financial year, during a City
council meeting on Thursday. The theme of Hill-Lewis’ administration has been about ‘Hope’.
And for his fourth – and second last – Budget of this administration, the sub
theme of the budget was named “Invested in Hope” Budget.

COURTESY: City of Cape Town
Hill-Lewis reiterated that each of the budgets in this term
has seen new capital expenditure records.
‘’This budget contains Cape Town’s planned infrastructure
investment over three years – at R39,7bn –more than the three Gauteng metros
combined, and will create over 130 000 construction-related jobs. Crucially, a
full 75% of this investment directly benefits lower income households. Our
record-setting investment in Cape Town’s water and sanitation infrastructure
gets another R5bn boost this year – more than double the R2.3bn we spent on
water and sanitation in our first budget in 2022.’’
‘’Over the next three years R16,6 billion is allocated to
water and sanitation. Just this portion of our capital budget is more than the
entire capital budgets of Tshwane and Ekurhuleni combined. In public transport,
over the three-year MTREF we’re spending around R4,5bn on our MyCiti expansion.
This is the biggest project of its kind in South Africa which, once completed,
is going to improve the lives of so many people along this route.
‘’We also march ahead on our mission to a decentralised
energy future that is less Eskom reliant, with R5bn of investment over the
medium-term framework in our city’s electricity grid,’’ said Hill-Lewis.
The Cape Town Mayor says the biggest chunk of the budget
will be allocated to the safety and security directorate. The Cape Town mayor
says the metro will deploy over 500 new officers across every community in Cape Town.
‘’This means that every ward in the city will now have a
permanent deployment of officers for the first time. We are going to post
officers in neighbourhoods where they will be stationed permanently, and where
they will get to know that community well. They will get to know the challenges
of the neighbourhood, they will get to know the problem buildings in the area,
and they will get to know the residents themselves,’’ said Geordin Hill-Lewis,
Cape Town Mayor.
‘’This kind of personal policing, where relationships and
trust are built with specific officers, can only lead to more positive
outcomes, and I look forward to seeing its impact once deployed. These new officers
are over and above the 400 new officers we’ve added to the ranks of law
enforcement and metro police since the start of this term.
‘’As they say, but wait…there’s more. You will remember
three years ago we funded a first small unit dedicated to doing armed escort
duties. Since then, attacks on frontline service staff and on our construction
sites have skyrocketed as extortion mafia have only grown bolder and more
brazen.’’
‘’We are sadly spending hundreds of millions of rands each
year in armed security with private security companies. This is money that
should be spent on basic services, or more infrastructure, but instead it must
be spent on simply guarding waste collection trucks, or sewer response teams,
as they try to deliver basic services in communities without harassment and
attack.
''Time and time again we hear the same feedback from our
teams – when there are blue lights there, there are no problems, no attacks. So
I am also pleased to announce that in this budget we are now insourcing some of
these security costs, and creating a much larger dedicated escort unit of 220
new officers. We hope this will put a stop to attacks on our frontline service
staff so that we can better service the public, especially in informal
settlements.''
‘’With today’s two announcements of over 700 new officers,
plus the 400 we have already funded and deployed since the start of this term
in office – this means we have funded over 1100 new officers since the start of
this term.’’
‘’This
is by far the biggest investment ever in making Cape Town safer. Our total
safety and security budget is now a massive R6,7bn for the coming year. This
really demonstrates our commitment to help SAPS fight crime and to do all we
can to make Cape Town safer. Already with our major LEAP deployments to our
metro’s most violent crime-impacted suburbs, we are seeing major successes in
taking guns and drugs off the streets. With our special CBD deployment, we saw
big increases in policing action to combat crime, and that has inspired us to
make this investment in dedicated officers for every single ward.’’
‘’We are determined to make every single rand of our safety
budget work as hard as it can to remove guns and drugs from our communities,
and to arrest the perpetrators of crimes. And when we do finally get the
devolved policing powers we have been asking for, our well-trained officers
will be in a position to investigate and build solid case dockets that will see
these perpetrators taken off the streets for long periods at a time,’’ he
added.
Hill-Lewis says his administration will continue to
advocate for the devolution of policing powers. In terms of electricity, and
Hill-Lewis says it will increase purchasing of electricity to city customers by
2%. This as NERSA approved a 12,74% increase for Eskom and an 11,32% Eskom
increase to municipalities
‘’This has been made possible by discontinuing the
contribution to services other than electricity, embedded in the cost of each
electricity unit. For the past three decades, the electricity tariff has
included a portion – around 10% – which goes towards various other City
services, such as area cleaning, which are otherwise largely funded by property
rates. This system was initiated when electricity was relatively cheap, and a
much smaller portion of the monthly household bill.’’
‘’But this will now be discontinued, following a
comprehensive review of the City’s electricity tariff structure. Now that we
have seen two decades of exorbitant Eskom electricity price increases – where
Eskom electricity now costs a full 400% more than it did in 2004 – there is no
more room in the electricity tariff to accommodate a contribution to other
services.’’
‘’And so we have now done away with this practice to assist
households with the rising cost of electricity, which is a disproportionate
part of monthly household expenses. Cape Town has also made unprecedented moves
for any metro to offer protection to our Lifeline electricity customers.’’
‘’You will remember that in 2023 we raised the number of
units that Lifeline customers can buy at the cheaper, subsidised rate from 350
to 600 units a month. What this means is that Lifeline customers who use 600
units a month will pay more or less the same in this coming year as they did
three years ago. Of the metros, Cape Town stands alone in this support measure.
‘’Lifeline customers will further pay no fixed charge,
while City customers on the Domestic Tariff will make a proposed fixed monthly
contribution of R59,90 to ensure sustainable electricity services.’’
Hill-Lewis announced two changes to fixed charges for water
and sanitation The first change is that fixed water and sanitation charges will
now be determined by the value of your property and not connection size
‘’In the past, households were charged a particular fixed
charge for water based on the size of their water connection – for most homes
this was a 15mm connection. This also meant that a well-off household and a
low-income household who had the same connection size paid the same fixed
charge. Now this fixed charge will be determined by the respective property
values, resulting in a saving for the lower income household.’’
The second change is that sanitation, which used to only be
an estimated charge based on the volume of water usage, says Hill-Lewis, will
now include a fixed charge.
‘’This fixed portion will be offset by a reduction in the
volumetric tariff. So the overall cost to the household remains the same, only
the structure of the tariff changes. These latest changes will enable
infrastructure investment into the future and sustainable service delivery,
while offering greater protection to our most economically vulnerable residents,’’
said Cape Town Mayor, Geordin Hill-Lewis.
With regards to waste management in Cape Town, there is a
change in how the City charges for waste services which will reflect on
ratepayer’s bills. Previously only refuse removal was shown on the bill. Now ratepayers will see
both refuse and city-wide cleaning reflected eon the bill.
‘’This is not an additional or new expense to customers:
the removal of the electricity contribution to rates fully buffers the
financial impact of the new City-wide Cleaning tariff. The City-wide Cleaning
tariff will therefore not be a new charge, but merely a change in the method of
how City customers contribute to the funding of this service.’’
Indeed, most consumers will still be slightly better off
after the change, even if only by a few rands a month. Waste collection
continues to be funded by its own tariff, which increases by 7,36% for 25/26 as
the City continues to focus in particular on improving waste and cleansing
services in areas with lots of backyarders and in informal settlements,’’ added
Hill-Lewis.
Furthermore, a total of R88m annually will go to the City’s
new Highway and CBD cleaning initiative, helping to keep Cape Town clean Over
the same three-year period, says Hill-Lewis, it will be investing a billion
Rand in street lights and traffic signals, and just over a billion Rand to
purchase more refuse removal vehicles and plant.
He also announced that the City has set aside R2,6bn for
road maintenance, R687m for road upgrades and R294m for various congestion
relief projects over the three-year MTREF.
A further R123m has been set aside for upgrades to sports
facilities, R66m to upgrade our city’s recreation hubs and community halls, and
R171m for parks and public spaces.
Additionally, Libraries get R191m in this budget for
upgrades and books, and public swimming pools will get more than R95m to ensure,
says Hill-Lewis, that they look pristine and operate smoothly.
In terms of homelessness, and R200m is allocated over the
three-year medium-term framework to expand and operate these dignified shelters
to more parts of the city.
Hill-Lewis also touched on the above-inflation property
rates increase of 7.96%. According to the mayor, this is to cover the major
growth in more policing resources for a safer Cape Town.
‘’This is all literally being invested straight back into
our plan to safeguard our city and its residents. Even with this increase, Cape
Town still has the lowest property rates for residential, commercial and
industrial properties, as calculated with the nationally-applied
rate-in-the-rand formula. In fact, even with the 2025/26 increase applied, Cape
Town’s residential rate-in-rand remains below last year’s levels in all other
cities.’’
‘’For the current General Valuation (GV) term, there is
also a Rates relief increase of 50% for all residential properties under R5
million, with the first R450 000 of property value Rates-free, the highest of
all metros. Not only do Capetonians see real results from their rates
contributions, and higher property value growth than anywhere else, they also
get the best bang for their buck on the property rates itself.’’
‘’We have also, once again, funded the most comprehensive
social package in the country, valued at R5,2 billion for 2025/26, up from
R3,75 billion in 2022/23. This includes R2,4 billion in rates rebates and R2,8
billion in indigent relief. We continue to offer the highest allocation of free
water at 15Kl and free sanitation at 10Kl of all metros in South Africa, and
the widest criteria for Lifeline Electricity as mentioned earlier,’’ concluded
Cape Town mayor Geordin Hill-Lewis
The City of Cape Town's 2025/26 Budget has been tabled and
is open for public participation, before it is implemented on 1 July 2025.
Done by: Mitchum George