Annual budget 2021/22: City continues to prioritise support for residents amid ongoing Covid-19 impact

1. COUNCILSPEECH BY THE EXECUTIVEMAYOR, ALDERMAN DAN PLATO
26 May 2021
Annual budget2021/22: City continuestoprioritisesupportforresidentsamidongoingCovid-19
impact
Speaker,letme starttodayby welcomingyoutoyournew position,and congratulatingyoufor
takingup thiskeyseatinour council.I am confidentthatyour26 yearsas a councillorinservice to
the people of thiscitywill serve youingoodsteadtocontinue puttingthe peopleof ourbeautiful
cityfirst,and overseeingthese council meetingswithfairnessandprofessionalism.
Budget
Speaker,todayItable the City’sannual budgetof R56,6 billion,whichamountstoR8,3 billionforthe
capital budget,andR48,3 billionforthe operatingbudget.The annual budgetfor2021/22 outlines
the fundedcommitmentsof the City,whichwill seeusdeliveronourIntegratedDevelopmentPlan
(IDP) andassociatedstrategiesinordertoeffectivelysupportthe livesandlivelihoodsof all our
residents.
As the impactsof the global Covid-19pandemiccontinue tobe feltbyall,we have takenmeasures
to provide relief tostrugglingresidents.Asof 30 April 2021, we have writtenoff outstandingdebts
of residentstothe value of R295 million,withaproposal ontomorrow’scouncil agendatowrite off
a furtherR4 billioninoutstandingdebtfromresidentsfrompreviousyears.
We are also allocatingR3,35 billionforratesrelief forthe 2021/22 financial year.Thisconsistsof
R1,99 billionforindigentreliefandR1,35 billioninratesrebates.Thisisinadditiontothe dedicated
Covid-19relief budget,primarilyof R313 milliononthe OperatingBudget.
Knowingthe economicfalloutfromthiscrisisandhow ithas impactedonthe income levelsof
businessesandresidents,we have placedsignificantemphasisonensuringthatthisbudgetdoesnot
impose furthereconomichardship.Assuchwe have ensuredthat,throughextensive expenditure
cuts, the ratesand tariff increaseshave beenkepttoanabsolute minimum.Ratesincreasesare as
follows:4,5%average increase forrates,5% increase forwaterand sanitation,and3,5% for refuse
removal.The electricitytariff will be increasedby13,48%, withresidentsbeingsparedthe full
increase of 15,06% imposedbyEskom.
We continue tocall for National Governmenttomove fasterregardingIPPlegislationaswe are
currentlyhavingtoallocate 23% of ourtotal annual budgettowardsbulkelectricitypurchasesfrom
Eskom.I am sure that withcleanand reliable energyprovidedbyahost of independentpower
producers,we can reduce the amountwe spendonelectricity,andredirectthose fundstowards
more servicesforourresidents.
In lightof the pressure onthe National Budget,the tapering-offof transferstolocal governments
meansthat we will have lessavailablefromthatsource to fundouractivities,andthisshouldfurther
incentivise national governmenttoprovide urgentclarityonIPPs.

2. WithR11,1 billionallocatedtowardsourWaterandWaste DepartmentandR13,8 billiontowards
Energyand Climate Change,these twodepartmentstake upjustoverhalf of our total operational
budget.R4,6 billionisallocatedtowardsourSafetyandSecurityDirectorate,withR4,2billion
allocatedtowardsCommunityServicesandHealth.
Furtherdetailsforeachof the directorateswillbe discussedbyeachof the Mayoral Committee
Members.
A critical part of the budgetaryprocessforanyCitythat wantsto ensure itisaccountable and
responsive toitsresidents,ispublicparticipation.Inspite of the challenges, we continuetoface as a
resultof the global Covid-19pandemic,andthe limitationsplacedonpublicgatherings,the Cityof
Cape Town wasable to safelyhost68 ward basedfocusgroupson the draft budgetacrossthe City
and where residentsweren’table toattendinpersonwe made use of servicessuchasSkype.While
we continuedtoplace advertsinnewspapers,includingcommunitypapersdistributeddirectlyto
our residents’postboxes,we alsomade use of social mediaandensuredthe budgetwasavailableat
all of ourlibrariesforthe publictoengage with.
To all the residentswhoprovidedinput,thankyou.Thisisyourbudget,andwithall the submissions
we receivedfromyouduringthe publicparticipationprocesswe are able todeliverabudgetthat
takesintoaccount yourneeds,the challengesyouare facing,andhow bestwe can continue toserve
you.
Our budgethasbeena careful balancingactbetweenmeetingthe service deliveryneedsof all
residentsandbusinessesinthese tryingtimesandstemmingfurthereconomicdecline inthis
constrainedcontext.We acknowledgeandthankresidentsandbusinessesfortheircontinuedhigh-
level of payments,whichiskeytoensuringthatthe municipalitycancontinue toprovide servicesto
all whoseeka livelihoodinourCity.
Unfortunately,untilsuchtime aswe reach herd-immunity,throughthe roll-outof aneffective global
vaccinationprogramme,we anticipate thatwe willcontinuetooperate withinthe constraintsof
some formof lockdownimposedthroughthe National DisasterEmergencyRegulations,andthe
associatedadditionalcostsof deliveringserviceswithinthe publichealthresponse.
These constraintswill notpreventusfromdeliveringservices,whichsustainbothlivesand
livelihoods.We are fullycommittedtocontinue chartingarecoverypathfor the City,andensuring
that the bestservicespossible are deliveredasefficientlyaspossible.The investmentsmade through
thisbudgetwill notonlyhelptoensure servicesare deliveredandcommunitiesare protected,but
theywill alsosupportthe recoveryof oureconomy.

3. Amongthese cutsisa commitmentthatthere will be zeropercentcostof livingincreaseinthe
salariesandwagesprovisioninthe 2021/22 financial year.Toachieve this,the Cityhaspetitioned
the Local GovernmentBargainingCounciltonotaward any salaryincreasesforstaff andcouncillors.
We understandthatthishasbeena hard yearfor staff and councillors,whohave admirably
continuedtodeliverservicesandsupport communitiesundertryingcircumstances,butwe all need
to make sacrificesinorderto achieve longertermsustainability.
It issimplynotacceptable thatthose inthe publicsector,byvirtue of beingsubjecttocollective
agreementsshouldimpose furtherstrainonthe residentswe serve,however,shouldthe bargaining
council bindusto makingsuch increases,the City’sstaff numberswill have tobe decreasedto
achieve thiscommitment.
Give DignityCampaign
Speaker,aswinterfastapproaches - some mightsay itis alreadyhere lookingatsome of the severe
coldfrontswe’ve hadinrecentweeks - I wantto share withour councillorstodaymore information
on our Give Dignitycampaign,andhope thattheyare promotingthiscampaignineachof their
wards.
The City’sGive DignityCampaignadvocatesforalternative,more impactful waysof helpingpeople
to getoff the streetssustainably.Itisimportantthatdonationsencourage reintegrationandgo
directlytosupportingpersonswhohave committedtorebuildingtheirlivesoff the streets.
There isan official Give DignitySnapScanthatresidentscanuse tomake donations,ortheycan
donate directlytosheltersandNGOs.Bydoingthis,residentscanhelptosupportpeople stayoff the
streetsona sustainable basisasregisteredorganisationscanprovide warmbeds,social worker
support,substance abuse rehab,andotherservicesthatwill helpthose livingonthe streetwith
reintegration.
On several occasionsoverrecentweeks,IjoinedourReintegration Unitofficialswhiletheywere
carryingout theirdutiesacrossthe City.Theyworkdailyto linkwillingindividualstosheltersand
Safe Spacesand reunite familieswherepossible.Helpisprovidedtogetoff drugsviathe Matrix
programme,accessto EPWP jobs,obtainIDdocuments,social grants,employmenttrainingand
more.What became clearto me is thatdrugs are withoutquestionamajorreasonwhymany are
livingonthe streets.
While sheltersandsocial welfare remainsthe constitutional mandate of nationalandprovincial
government,the Citycontinuestogoabove andbeyondto assist.
Covid-19FoodRelief

4. Speaker,Imentionedafewminutesagothatthe City continuestoprovide Covid-19relieffunding
for our residentsasithasdone overthe past year.Much of thishas gone towardscritical food-aid
that wasnecessaryforour many residentswhofoundthemselvesunemployedasaresultof the
national lockdowns.
Some mighthave forgottenbynowaboutthe alarmingscenesof shopsbeinglootedandfoodtrucks
beingtorchedduringthe firstweeksof lockdownlastyear.Byrollingoutouremergencyfoodaid
relief toover260 soupkitchensacrossthe city we quicklysaw the lootingandtheftof foodcome to
an end.
Withall thisgood workbeingdone,I finditgreatlydisappointingthatsome shamelesspoliticiansare
nowtryingto smearour critical relief effortsbymakingfalse accusationsandthrowingmudinthe
hope that some will stick,evenafterthe truthhascome out.We know that a lie can get halfway
aroundthe worldbefore the truthhasa chance to getits pantson.
The DA councilorwhowas lastweekaccusedof fraudis cooperatingfullywiththe authorities.When
allegationsagainstherwere firstbroughttoour attentionseveralweeksago, the Speaker’soffice
launchedafull investigationwithoutdelayandfoundnomalpractice wascommitted.
I am veryconcernedthatthe Hawksseemtobe actingon false informationprovidedtothem, and
have issuedmediastatementsthattheyhave hadtocorrect a daylater.While all the mediahouses
ran withthe original storyof fraudand corruptionI have onlyseenahandful coverthe backtracking
of the Hawks.
I trust that if anyone isfoundtohave misledthe Hawks,andwastedtaxpayers’moneyon
manufacturedwitchhunts,thattheywill be heldresponsible.
I have saidit before,andIam sayingit againtoday,our mediahave a responsibilitytoscrutinisethe
informationtheyare given,insteadof justprintingthe liestheyare told.
Vandalism
Speaker,whilewe roll outourwinterreadinessprogramme andassistourresidentsmostinneed,I
finditdeeplydisturbingthatsome inourcommunitiesthinkitisokaytosteal anddestroythe city
infrastructure thatdeliverscritical servicestoourresidents.
One area that has beenparticularlyhardhitinrecentweeksisoursewerage infrastructure.
Currently,25 sewage pumpstationsacrossourcity have beenvandalisedorimpactedbytheft.
It isestimatedthatthese operatingcosts,includingrepairsandthe hiringof mobile equipmentto
minimise seweroverflows,couldcostapproximatelyR30million.While thiscostisstaggering,the

5. impacton our communitiesisevenworse astheynow have todeal withoverflowingsewerageasa
resultof the infrastructure thathas beenstolenanddamaged.
I wantto warn those whoare committingthese crimesthattampering,theftandvandalismof
essential governmentinfrastructure,isseenasa prioritycrime due tothe extremelynegativeimpact
on the rightsof communities,andasperSection2 of the Criminal MattersAmendmentAct(Act18
0f 2015), imprisonmentnotexceeding30yearsand finesnotexceedingR100 millionare possible,
whenfoundguilty.SoIwantto call onour communitiestoplease reportanyone suspectedof being
involvedinthesecrimes –theyare stealingthe serviceswe provide toyou.
That is whywe are offeringarewardof R20 000 fromthe Mayor’s Special Fundtoanyone who:
Providesinformationthatwillleadtothe arrestand prosecutionof peoplewhovandalise,damage,
or steal essential infrastructure
Providesinformationthatwillhelpusrecoverstolenmunicipal property,equipmentandgoodsthat
mustimprove residents’lives
Closingremarks
Speaker,the ongoingimpactof the global coronaviruspandemicwillcontinuetobe feltbyour
residents(andthe world) forsome time tocome.ButI know that byworkingtogether,we canget
throughthese toughtimes.We made itthrough2020 by workingtogetherandwe will make it
through2021. Asa residentover60 I wasencouragedtoget vaccinatedandlastweekIsat downin
the nurse’schairand receivedmyvaccine.Itwasquick,pain-freeandIcarriedon withmy day.
I wantto encourage all our residentswhoqualifyforthe vaccine toplease goandgetone.While the
vaccine rolloutisa national governmentprogramme,the Cityisassistingwithover300 of our
trainedstaff membersadministeringthe vaccine atmore than 70 sitesacrossthe city. With
sufficientherdimmunitythere shouldbe noneedforthe continuedextensionof the National
DisasterRegulations.
End
Publishedby:
Cityof Cape Town,MediaOffice