SAPOA notified members last week that the City of Cape Town had published an Amended Budget on Wednesday 28 May 2025, following active and intense engagement between SAPOA and the Mayor and his executive team regarding the City’s proposed amended tariff structures and rates and tariff increases. The Mayor publicly acknowledged SAPOA’s constructive input and the effect that it had on specifically the city-wide cleaning levy.

As has been indicated, we remain concerned about the legality of the city-wide cleaning levy that the City wishes to impose from 1 July 2025. In the Amended Budget, it is indicated that only residential properties and vacant land will be liable for this levy during 2025/26, and that this levy will be raised on all types of properties within the City of Cape Town from 1 July 2026.

We furthermore remain concerned regarding the basic water tariff which is no longer calculated according to the diameter of the pipe connecting the property to the water grid, but rather on property value. The other main concern is the introduction of a basic sewerage levy which is similarly to be calculated according to property value.

Both of these issues were reflected in the initial budget.

The main changes to the proposed budget, that are of relevance, are the following:
  1. Relief is granted to lower value residential properties with regard to the basic water charge, over a span of property values.
  2. Further property rates relief for residential properties with a larger rates rebate.
  3. The cleaning levy will only be payable by residential and vacant land property owners for the current year. From 1 July 2026 the cleaning levy will be payable by all property owners.
  4. Residential properties and vacant land with a value of less than R20 million will receive a reduction in the cleaning levy, over a span of property values.

We are currently in the process of finalising our comments to the City of Cape Town on the Amended Budget.

We have also been invited to meet with the city officials to discuss these and other concerns.

Members are therefore requested to urgently provide us with the following:

  1. An indication and/or comment as to how the Amended Budget will impact members’ portfolio within the City of Cape Town; and
  2. Any questions that may be put to the city officials.

Kindly forward your comments to ceo@sapoa.org.za