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Speaker 1: He's pulling up to your hood and your home to

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Speaker 1: here your neighborhood story. It's Leicester in your lounge, life

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Speaker 1: on cattle. We really, I really encourage Cape Tonians to

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Speaker 1: participate in a budgeting process, the budgeting process for the

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Speaker 1: City of Cape Town, not just in an election year,

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Speaker 1: but throughout. You have to be engaged so that when

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Speaker 1: a city tables a budget or eventually passes a budget,

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Speaker 1: that you know what is happening here. So what the

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Speaker 1: city is proposing. It's an eighty seven point eight billion

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Speaker 1: round budget. Is a forty billion rand infrastructure spend over

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Speaker 1: the next three years. It's that infrastructure lead strategy which

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Speaker 1: the city says will drive delivery and create about one

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Speaker 1: hundred and thirty thousand jobs, particularly construction jobs. But where's

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Speaker 1: that money going to? Sixteen billion for water and sanitation,

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Speaker 1: electricity upgrades, six roads, bottles and storm water almost four billion,

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Speaker 1: the my city expansion project, particularly to areas where we

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Speaker 1: need it most on the Cape Flats three billion. Money

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Speaker 1: going to housing in informal settlements three billion. The mayor pitching

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Speaker 1: this as a City of Hope budget. He claims that

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Speaker 1: the city still offers the lowest overall municipal Bulls amongst

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Speaker 1: the other metros. The good news is the is property

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Speaker 1: rates relief. The city's proposed budget says sixty percent of

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Speaker 1: households may see lower on unchanged rates, that rates formula

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Speaker 1: cut by ten point two percent, that rates three threshold

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Speaker 1: increased to five hundred thousand RAN, and expanded rebates for

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Speaker 1: pensioners and low income households. But the bad news, and

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Speaker 1: this is where advites tariffs that will still go up.

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Speaker 1: Electricity by six point six percent if you get you

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Speaker 1: electricity via prepaid meter from the City of Cape Town,

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Speaker 1: water and sanitation up four point five percent, and refuse

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Speaker 1: up by three point seven percent. So even if your

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Speaker 1: rate drops, your monthly bill could still rise. Joining me

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Speaker 1: on the line as the mayor, Jordan Hill Lewis, But

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Speaker 1: let me first talk about last night. You enjoyed your

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Speaker 1: time at DHL Stadium.

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Speaker 2: I did have a wonderful time, what an amazing vibe.

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Speaker 2: I'm sorry about the results, but it is still such

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Speaker 2: a great such a great game.

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Speaker 1: I wonder if, as mayor cont you just rename it

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Speaker 1: to GHL Stadium.

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Speaker 2: Much of.

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Speaker 1: The city needs the money as the naming sponsors. But

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Speaker 1: let's talk about the budget. You call this a budget

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Speaker 1: of hope, But what tangible change will what an ordinary

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Speaker 1: cape Tonian feeling the next, say, twelve months, Not just

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Speaker 1: in the lantern.

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Speaker 2: Those major infrastructure projects all result in better service delivery,

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Speaker 2: more reliable services, and certainly in the case of our

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Speaker 2: street level infrastructure like pipe replacements and drain replacements, pump

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Speaker 2: station replacements, it results in much more dignity because you

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Speaker 2: get fewer things like drain sewer blockages, sewer overflows, you

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Speaker 2: get more toilets. There's about three thousand new toilets per

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Speaker 2: year budgeted in there. So all of that results in

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Speaker 2: more dignity, and particularly in the water and sanitation space,

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Speaker 2: which takes forty percent of our new spend allocation. So

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Speaker 2: over and above our repairs and maintenance, there's new investments.

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Speaker 2: Forty percent of it just goes to water and sanitation.

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Speaker 1: Mister may I appreciate me in the city says well,

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Speaker 1: we're expanding the safety in it for the most vulnerable.

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Speaker 1: That that greats threshold increase to five hundred thousand rand.

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Speaker 1: Indigen grants that basket is improving. But when I talk

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Speaker 1: about the missing middle, there was a report released last

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Speaker 1: week saying that more and more young professional cape Tonians

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Speaker 1: are leaving the city. There's a reverse immigration back to

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Speaker 1: the city of Djobol because for young families starting their lives,

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Speaker 1: young professionals finding ever increasing unaffordable to live in the

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Speaker 1: city of Capelin, where's the relief for them.

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Speaker 2: So we've increased the rates rebate for all homes up

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Speaker 2: to eight million. That used to be all the way

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Speaker 2: down at five million a couple of years ago, and

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Speaker 2: we've increased it all the way up to eight million.

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Speaker 2: So what that means is that if you live in

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Speaker 2: any property in eight million round value or less, you

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Speaker 2: get that five hundred thousand round rates rebates per year.

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Speaker 2: Now that that is obviously, you know, eight million is

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Speaker 2: well above what you might describe as the missing middle.

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Speaker 2: But we're aware that there are a lot of middle

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Speaker 2: income families, middle class families who live in have lived

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Speaker 2: in homes for a long time that have grown in

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Speaker 2: value considerably. So we're trying deliberately to protect the pockets

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Speaker 2: of those a families. And then in terms of the

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Speaker 2: cost of accommodation and housing, the only way to do

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Speaker 2: that is to is to increase the supply of accommodation

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Speaker 2: and we have other programs. Some of them are inside

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Speaker 2: the budget, but other than others are just in the

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Speaker 2: regulatory the planning environment space to make it easier to

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Speaker 2: increase the housing supply in case down and hopefully bring

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Speaker 2: down the average cost of accommodation.

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Speaker 1: Listening in and reading your speeches, so you somewhat intimate

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Speaker 1: that it's not the city's jobs to the city isn't

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Speaker 1: good at building houses and accommodation that you're saying that

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Speaker 1: is the housing agencies and the private sector that must

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Speaker 1: do that. But in terms of protection, the consideration and

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Speaker 1: the concept of for example, rent control is one thing

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Speaker 1: that you says would not work. But specifically, where are

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Speaker 1: you seeing the breathing room for the middle income community

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Speaker 1: in Cape Town, those people who are starting their lives,

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Speaker 1: young professionals, not just when it comes to the housing affordability,

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Speaker 1: but for all factors that impact them, whether it be electricity,

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Speaker 1: whether it be water, whether the cost of getting to

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Speaker 1: where they need to be every day.

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Speaker 2: So let's just start with what is the responsibilitivia City

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Speaker 2: of Capes and then we'll talk about that regulatory stuff

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Speaker 2: inside the city. If you look through the detail of

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Speaker 2: the budget, we've introduced various rebates for properties up to

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Speaker 2: one point two million. Those are those people starting out

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Speaker 2: getting their first place, moving out of their parents home.

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Speaker 2: And there's a range of service charge discounts not just

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Speaker 2: in the rates portion, but in refuse, in city cleaning,

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Speaker 2: in water and sanitation for properties up to one point

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Speaker 2: two million, and those discounts are listed in the budget tables.

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Speaker 2: Then we you know, obviously, when we roll out things

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Speaker 2: like the My City Cape Flats expansion, the total the

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Speaker 2: most expensive you use it anytime you like tickets is

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Speaker 2: if I recall correctly, one two hundred round one thousand,

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Speaker 2: three hundred round a month. And that is again precisely

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Speaker 2: designed so that people can use it to get to work,

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Speaker 2: use it socially as well. And there will be an

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Speaker 2: entire new section of the city along the Kpe Flats

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Speaker 2: to Kaili Cher and Mitchell's Plane, via Hanover Park, Googs Philippe,

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Speaker 2: Lansdowne Road, all of that that will be able to

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Speaker 2: use it in the coming eighteen months or so. And

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Speaker 2: then I would say on the in the kind of

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Speaker 2: other sphere of a regulation, yes, the you know, it

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Speaker 2: is a very very bad idea to try and manipulate

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Speaker 2: the rental market, because all that it actually results in

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Speaker 2: is less availability and higher prices because the provider of accommodation,

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Speaker 2: the you know, those people who build new buildings just

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Speaker 2: just run a run away. They run out of the

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Speaker 2: market and they go and build elsewhere, and so you

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Speaker 2: get less availability and higher prices. So the best way

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Speaker 2: to do it is to is to facilitate and incentivize

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Speaker 2: the increase in supply. And we do that in the

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Speaker 2: city by releasing our city owned land all over the

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Speaker 2: place for those developments. And we do that by using

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Speaker 2: the planning powers that we have to make it easier

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Speaker 2: to build things. It should not be taking three four

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Speaker 2: years to get permission to provide new housing supply in

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Speaker 2: the city, and we are actively trying to bring that

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Speaker 2: permitting period down dramatically.

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Speaker 1: What's the return of investments to the Cape Tonian if

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Speaker 1: the city in that what the Black Friday is sell

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Speaker 1: fifty properties sold. If I don't know exactly how much

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Speaker 1: the city made from that sale, but in the longer term,

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Speaker 1: how does that benefit the city of Cape Town and

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Speaker 1: its residency. If we're selling off city assets, surely those

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Speaker 1: assets could be used as some sort of reinvestment into

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Speaker 1: our communities.

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Speaker 2: That's exactly what they will be useful. Absolutely, that's exactly

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Speaker 2: private developers. But they paid dividends to the city forever

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Speaker 2: and a day, in perpetuity, long after you and I

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Speaker 2: are gone. They will still be paying dividends to the

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Speaker 2: city every single month, and those dividends will be used

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Speaker 2: to fund basic services across the city in the form

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Speaker 2: of rates income over and above what you sell them for.

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Speaker 2: You sell them for X million now, but they will

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Speaker 2: deliver infinitely more. That's one hundred times that over years

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Speaker 2: in the form of the income that they delivered to

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Speaker 2: the city, which we then use for the funding of

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Speaker 2: services all over the city. The fact is that not

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Speaker 2: all properties are suitable for low income housing developments because

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Speaker 2: they require a certain scale to make them feasible. These

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Speaker 2: are mainly smaller properties or heritage properties that the city

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Speaker 2: has no alternative use for, and in fact, worse than that,

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Speaker 2: they become neglected and derelict of the time and sights

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Speaker 2: of urban decay.

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Speaker 1: I also note that the city is pushing aheads now

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Speaker 1: being budget at at one hundred and fourteen million ran

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Speaker 1: that end to barrier war and also noting from your speech,

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Speaker 1: you seem more strident, more tough on crime. That's the

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Speaker 1: impression I get from from reading your speech and one

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Speaker 1: hundred and fourteen million round. You say we'll go to

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Speaker 1: protecting not only the residents who live alongside the end

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Speaker 1: to but also the motors. But how where's the investment

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Speaker 1: in the softer things, the community changing things, not just

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Speaker 1: displacing crime, but also the interventions from a community based

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Speaker 1: crime prevention perspective.

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Speaker 2: Well, also in that speech you will have seen the

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Speaker 2: three hundred million rand development redevelopment of Strength and Tan

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Speaker 2: Pavilion that is a beautiful it will be a beautiful

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Speaker 2: community facility and recreation space. The extra hundred and city

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Speaker 2: million rand injections this year alone into repairing and upgrading

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Speaker 2: community facilities, sports grounds, soccer fields across the Cape Flats.

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Speaker 2: So you know, the point I was trying to make

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Speaker 2: is that there are tons and tons of those softer

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Speaker 2: investments that the city is doing. Just in this year

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Speaker 2: alone we have opened a number of new athletics tracks,

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Speaker 2: repaired stadiums that would derelict, installed new soccer field in

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Speaker 2: Bishop Lavis, Mandela Park and Kai Lecher in Atlantis, and

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Speaker 2: more and more. So you know, I'm just not going

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Speaker 2: to the point I was making is I'm not going

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Speaker 2: to take that kind of political posturing from those opponents

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Speaker 2: of a project that is absolutely necessary to improve the

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Speaker 2: safety of everyone in Cape Town who uses the end.

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Speaker 1: To response from two, three, four of our listeners saying

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Speaker 1: they want to more clear direct answer the mayor is

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Speaker 1: not answering the question of how they are helping the

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Speaker 1: Middle Coast. Maybe you'd like to emphasize, repeat, reiterate your

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Speaker 1: response to listeners here.

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Speaker 2: Yes, sure, so you get for all properties up to

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Speaker 2: and including eight million rand in value, we have just

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Speaker 2: increased it to that amount. You get a property rates

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Speaker 2: value rebate of five hundred thousand Rand. We have introduced

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Speaker 2: that precisely to help people who live in that Maybe

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Speaker 2: a few years ago they lived in a home of

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Speaker 2: three million, and their home has expanded rapidly in value,

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Speaker 2: and so they don't they under the old system, they

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Speaker 2: would not have qualified for any rebates at all. That's

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Speaker 2: why we've expanded those rebates precisely to look after that

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Speaker 2: kind of what you described as the missing middle. Now,

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Speaker 2: in reality, not many of us would describe someone living

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Speaker 2: in an eight million round home in the missing middle.

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Speaker 2: But nevertheless, we know that there are some families who

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Speaker 2: used to live in a much more modestly valued home.

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Speaker 2: Because Cape Town has done so well, those values have

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Speaker 2: increased tremendously, and we are trying to protect their pockets specifically,

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Speaker 2: that's the first thing. Then in the much lower end

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Speaker 2: of the spectrum, up to one point two million round

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Speaker 2: in value, there's a number of discounts that we offer

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Speaker 2: on all of our tariff lines on water and sanitation,

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Speaker 2: on refuse, and on rates, and those are published in

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Speaker 2: the budget tables. But they are also designed to help

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Speaker 2: people living in a let's say a one point two

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Speaker 2: million round apartment, your first place, you want to start

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Speaker 2: a family, whatever, those are designed to help those people.

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Speaker 1: May I join your Lewis really appreciate your time. I

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Speaker 1: urge Cape Tonians go engage on the budget. If you

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Speaker 1: have and opposition make that submission. It's time now for

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Speaker 1: a public participation phasing this eighty seven billion RAN city

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Speaker 1: budget