The City of Cape Town recently published its draft 2025/2026 Budget (“the Budget”) for public comment. Comments close on 2 May 2025, and SAPOA intends submitting detailed comments prior to that date.

SAPOA is concerned about a number of issues emanating from the Budget, specifically above-inflation increases in property rates, the introduction of a “City-Wide Cleaning Tariff”, and a change in the way in which water and sanitation tariffs are billed.

In short, the Budget proposes the following changes:

  1. An average increase in property rates of 7.96%.
  2. Fixed water charges are to be determined by property value.
  3. Fixed sanitation charges are introduced, similarly determined by property value.
  4. The introduction of a city-wide cleaning tariff, also based on property value.

SAPOA has now addressed urgent correspondence to the executive management of the City of Cape Town, highlighting a number of concerns regarding these proposals. These include the following:

  • The above-inflation rates increase is unsustainable and contrary to National Treasury Guidelines.
  • The methodology for calculating fixed water and sanitation charges, based on property value, offends the prescripts of the applicable legislation which provides that, in general, the amount paid in respect of services are to be in proportion to the usage of that service.
  • The cleaning tariff is especially problematic. SAPOA has been advised that the proposed tariff constitutes a tax, and that the municipality is not entitled to raise further taxes without the authorisation from the Minister of Finance, which has to be published in a regulation.

Whilst it is indeed so that electricity increases are substantially lower than the increases allowed by NERSA, the fact is that the other tariff increases and changes are improper, and that there is no legal basis for their implementation.

SAPOA will therefore attempt to meet on an urgent basis with the City Executive to discuss these concerns, with the aim of having them removed from the Budget.

Members will be kept updated on the progress of the matter.