City Service Delivery on track despite economic downturn

CITY OF CAPE TOWN - MEDIA RELEASE - 16 NOVEMBER 2009

After three years of record infrastructure investment in Utility Services the residents of Cape Town need have no fears that their municipal services will be curtailed says Alderman Ian Neilson, Executive Deputy Mayor and Mayoral Committee Member for Finance.

“In fact, the proposed investment in Utility Services (Water and Sanitation, Electricity and Solid Waste Management) this year, despite the restructuring of the City’s budget, remains an all-time record and will significantly add to the capacity of the City to enhance its service delivery,” Neilson said.

“Projects have not been cancelled; they have only been rescheduled, on average by a few months, to match available funding. This is to ensure that the City does not face the more undesirable risk of inadequate cash flow that is required for continuing operations,” Neilson said.

The existing municipal service delivery levels will be maintained. The City is reprioritizing the manner in which it implements key projects and striving to do more with less. Austerity and prudent financial management will be compelling themes in a new City management approach based on a determination to protect ratepayers from unaffordable tariff increases. Services also need to enhance their revenue collection and sharpen their pencils so that the delayed projects can be proceeded with as soon as possible.

The budget allocations to the Utility Services Directorate has doubled in the past few years - from R960 million in 2005/6 to R1.8 billion in 2009/10. A total of R3.2 billion has been invested in utilities infrastructure in the intervening three years.

“Despite the fact that the City is re-phasing 17% of capital projects for Utility Services, the budget is still the highest recorded thus far,” Neilson said.


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Issued by: Communication Department, City of Cape Town

Media enquiries: Ald Ian Neilson, Tel: 021 400 1306 or Cell: 083 306 6730