Note to Editors: The following speech was delivered by Cllr Jacqui Uys, DA Tshwane Spokesperson on Finance, today. Please find a video of that here
The ANC/ActionSA/EFF government in Tshwane is excited to table a funded budget, but in reality they are tabling a budget that does not speak of good governance, rather it put the onus of the city’s financial rescue mission on the residents of Tshwane.
The DA has raised concerns on the newly introduced tax for waste removal, called a city cleansing levy, and while it is uncertain who exactly this tax will be levied to, what is clear is that the introduction of this tax could have been avoided.
In 2024 the DA-led coalition launched an audit to ensure that all properties that have bins lifted by Tshwane are, in fact, billed for this service and by the end of June 2024 there were good results from this audit ensuring an increase in revenue generation. This progress has regressed during the ANC administration, if the city only continued this work of fixing the administration of billing they could have avoided imposing a new tax. The DA rejects the implementation of this new tax.
We would like to thank the Executive Mayor for adhering to the calls of the DA and amending the draft budget to push back the implementation of a set network charge for electricity, affordable electricity is needed for economic growth.
While the Mayoral Charter for Financial rescue, as adopted by the DA-led administration, is still valid and not rescinded, we note in this budget that there is an absence of political will to do the work as stipulated in the charter. This can be seen by the reduction of funding to prepaid meters, a method to ensure that residents can better plan on their electricity spending and a tool to assist the city in revenue collection. We also see less funding allocated towards debt collection. This is of particular concern as this proposed funded budget relies on a 92.8% collection rate, while the city currently only averages at 89-90% collection.
The proposed budget is planning to fund this likely shortfall in cash collections with the increase of property tax brought on by the new valuations roll, the proposed budget only a projects a 10% increase, although the reality it will be closer to 30%.
The DA notes that the budget does try to compensate for the property valuation increased brought by the new valuation roll, but we maintain that the proposed decrease in rates ratio will not compensate for the high increases and that residents will still see a high increase in the rand amount demanded from them monthly.
To relieve this adverse impact on the pockets of consumers the DA proposes that the portion of residential properties that are not subjected to property rates are increased from baseline R150 000 to R450 000, which is closer to the norm implemented by other metros and will bring the relief needed by Tshwane Consumers.
The DA will work with ordinary residents of the city of Tshwane to submit our proposal that will leave the city without any option but to choose improved governance over increased taxes.