While several political parties opposed the City of Hope Budget – a R40 billion investment in basic infrastructure over the next three years – it was approved, with the DA's majority in council securing its adoption.
There are 231 seats in council, the DA has 135 of those, the ANC has 43, the EFF has 10, and the Good party has 9 seats.
This was the City of Cape Town's last budget meeting before the local government elections on Wednesday, November 4.
The council adopted the R87.79 billion budget for the financial year 2026/27 during a virtual special meeting on Monday, June 29.
Mayor Geordin Hill-Lewis presented the budget, which is "intact for the next three years while offering the widest rates relief and the lowest monthly bills among SA’s cities".
He said that this investment supported critical water, sanitation, electricity, and transport projects while maintaining Cape Town’s position as the metro with the lowest property rates in South Africa.
According to Hill-Lewis, significant relief measures were in place to protect households, including raising the rates-free property value threshold to R620 000, up from R450 000, for homes valued up to R8 million.
Pensioners benefit from an income threshold of R27 000 for rebates.
"This budget ensures Cape Town continues to be South Africa’s beacon of hope, offering the best services and value for ratepayer contributions, the widest social relief measures for struggling households, and the lowest property rates of all the metros by some distance," said Hill-Lewis.
ANC councillor Daliwonga Badela said they rejected the budget.
He highlighted the City's failing stormwater and road infrastructure, which disproportionately affects poor communities, creating significant safety risks and service-delivery inequality.
"It is, therefore, difficult to understand how a municipality that receives substantial grant funding from the national government can justify proposing MyCiTi fare increases, at approximately 50 percent," he said.
He acknowledged the increases in the fuel prices and other operating costs ("Cape Town's MyCiTi fare hike: Commuters face a 50% increase", Atlantic Sun Thursday, June 25).
Badela said: "While we acknowledge increases in fuel prices and other operating costs, such a steep fare increase is excessive and places an unfair burden on poor commuters.
"The City of Cape Town is a public institution established to serve its residents, not a corporate entity driven by profit," he said.
EFF councillor Andrew Arnolds rejected the R87.79 billion budget because it failed to address the poverty and inequality facing residents.
He criticised the municipality's reliance on outsourcing, noting that R11.4 billion was allocated to contracted services rather than building internal capacity, which he claims fosters corruption and waste.
Citing recent tender scandals and declining service delivery, the party asserts that the current administration prioritised consultancy over community needs.
"Instead of building internal technical capacity, the municipality increasingly relies on and spends billions on consultants and contractors to perform functions that should be undertaken by permanent municipal employees," said Arnolds.
GOOD party councillor Sandra Dickson criticised the City’s budget for hiking electricity, water, and refuse tariffs above inflation without justification.
Critical concerns include a massive, opaque increase in the "free basic services" budget, with R1.6 billion inexplicably classified as "other".
Dickson said that the City has lowered its housing delivery targets instead of addressing the systemic failure to utilise available land.
She said that delivery was failing to convert available land, capital budgets, and grants into housing opportunities.
"Targets are missed. Projects stall. Contracts fail. Awarded land remains untouched. This is the formal acceptance of failure," said Dickson.
Find Cape Community Media on TikTok and Instagram @ccmonlineza