Cape Town’s proposed budget, which includes increased tariffs and rates, has been met with objections from many ratepayers.
The draft budget was tabled in March. Calls for the public participation period to be extended were rejected.
Among the controversial topics was a citywide cleaning tariff alongside regular refuse removal, expected to be on ratepayers’ bills from July. There were complaints about the proposed fixed water and sanitation charges, and a standard R339.89 fixed electricity charge regardless of usage.
The city says it is modelling measures that include expanding property rates relief by extending the first R450,000 rates-free benefit to more homes valued beyond the R5m cut-off; raising pensioner rebate qualifying criteria higher than the current R22,000 monthly income; and reducing cleaning charges for properties valued between R2.5m and R7.5m. It says the 2025/2026 budget was designed to bring relief for households under R2.5m.
The City of Cape Town Collective Ratepayers’ Association, which represents about 40 ratepayer organisations, says it is disappointed with the budget.
Spokesperson Bas Zuidberg tells the FM it’s “perplexing” that the city made changes to the draft three days before the public participation deadline. He says a petition signed by about 10,000 people was ignored.
“Though the city rates calculator was updated with the changes, we believe that ratepayers are entitled to all the details since we are paying for a large part of the budget, and that we shouldn’t have to run the calculator 100 times to see the effect in each category and utility usage scenario. We should also have been given time to react to the full breadth of the changes.
“We are not interested in hearing how bad other metros are. We live here and we cannot afford the increases,” says Zuidberg.
The association wants infrastructure investments spread over a longer period, and for other revenue streams to be considered.
Jens Horber, a researcher with housing advocacy group Ndifuna Ukwazi (“Dare to know”), says rental units could become even more expensive, particularly in areas close to the city centre such as Woodstock and Salt River.
He says the focus seems to be on pensioners and properties in the R4m-R7m band.
We are not interested in hearing how bad other metros are. We live here and we cannot afford the increases
— Bas Zuidberg
“Areas such as Woodstock and Salt River have seen rising property prices over a number of years and homeowners here may have lower incomes but still earn above the indigent relief threshold or not be pensioners, so rates relief should be tied more directly to property value and income to address this ‘missing middle’.
“It does appear that the city has fully embraced the principle of cross-subsidisation and is willing to back this stance in responding to objections from ratepayers with some concessions made that do not erode the overall effect,” says Horber.
He says it is vital that the city implement its inclusionary housing policy. “More effective regulation of short-term rental accommodation, for example Airbnb, is also an urgent priority. Delays have only resulted in the continuing displacement of working- and middle-class people from the city centre,” he says.
Political parties have been part of the rates debate. GOOD proposed an audit of municipal salaries and a review of ward allocations, particularly those that underspend their budgets. Build One South Africa says the increases will “deepen the economic strain on households” and “must be challenged”.
Mayoral committee member for finance Siseko Mbandezi says the city is considering all inputs received from public participation, including the petition. “All comments will be responded to,” he tells the FM.
“There are no major infrastructure projects in the city’s budget that are not urgent. These include critical upgrades to wastewater treatment works, the sewer and water networks, the electricity grid, roads and other infrastructure. It is vital that Cape Town invest to ensure it is an even better city to live in for all in the future, and to avoid the path of decline seen in other cities that fail to make the necessary investments now,” he says.
“At the same time, this budget also contains the most inclusive social assistance package of any metro. While the budget is built to protect households under R2.5m, the city has further heard the concerns of ratepayers in higher-value properties,” he says.
Mbandezi says the council is bound by legislation to adopt a new budget before the start of the new financial year on July 1.
The budget is expected to be on the agenda of the council meeting scheduled for May 29.
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