Latest news with #BasZuidberg
IOL News
01-08-2025
- Business
- IOL News
Legal showdown: Cape Town ratepayers back SAPOA in fight against unlawful municipal charges
The City of Cape Town is being challenged in court for how it calculates fixed municipal charges. Image: File Picture The Cape Town Collective Ratepayers' Association (CTCRA) has welcomed a court case brought by the South African Property Owners Association (SAPOA) against the City of Cape Town over how it calculates certain charges on municipal bills. SAPOA has taken the City to the Western Cape High Court, arguing that linking fixed water and sewage charges to property value is unlawful - a view shared by the CTCRA, a newly forming body made up of 57 civic and ratepayer associations across Cape Town. Its interim chair is Noordhoek Ratepayers' Association chairperson Bas Zuidberg. In response to SAPOA's legal challenge, Cape Town Mayor Geordin Hill-Lewis said in a statement that the association was acting to protect the profits of the country's wealthiest property owners at the expense of ordinary Capetonians. 'SAPOA represents the largest and wealthiest commercial property owners – primarily shopping mall owners – who have long benefited from the success of Cape Town,' said Hill-Lewis. 'Yet now they argue that they should contribute the same to infrastructure costs as low-income households, which would be patently unfair.' He said SAPOA's attempt to halt the City's 2025/26 budget amounted to a defence of regressive taxation. 'The effect would be for ordinary families to effectively subsidise the richest property owners.' The City replaced the former "pipe levy", which had charged households equally based on pipe size, with a more equitable system linking fixed charges to property value. 'It's simply unsustainable for a R50 million home and a R500 000 home to make the same fixed contribution,' Hill-Lewis said. In a statement, the CTCRA said the City's approach to charging residents contravenes national legislation governing municipal revenue and services. The cleaning charge, for instance, was cited as an example of a general cost, comparable to road repairs or emergency services, that should be covered by property rates and not billed as a separate fee tied to property value. The CTCRA warned that if the issue is left unchallenged, other municipalities may adopt similar practices. 'This isn't just about Cape Town. It's about fairness and following the Constitution,' the association said. The group confirmed that the billing issue affects both business and residential property owners. It is considering applying to the court as a friend of the court (amicus curiae) to support SAPOA's legal arguments. The association also criticised Hill-Lewis for what it described as a deflection from the legal substance of the case. The mayor hasn't addressed the actual legal points raised. Instead, he's tried to frame the issue as one group of residents versus another,' said Zuidberg. They noted that many of those who objected to the City's latest budget were ordinary middle-class residents, not wealthy property owners. 'We're talking about retired people, single parents and families living month-to-month. Just because they own homes doesn't mean they can afford hundreds of rands more each month." The CTCRA argued that equating property value with affordability is misleading and that the City should not assume the right to determine who can or can't afford to pay more. In response to the City's claim that its budget includes mitigation measures to protect vulnerable households, the association said this was irrelevant if the charges themselves are unlawful. It also rejected the City's defence of its policies as a matter of tax fairness. 'Service charges aren't taxes. They're fees for services delivered. They're not meant to be progressive or regressive,' said Zuidberg. CTCRA said it and other civic groups had suggested alternatives, such as boosting municipal efficiency or introducing a tourist overnight tax, but these proposals were ignored. 'This court case is about the law - and the City must follow it,' the association said. Get your news on the go, click here to join the Cape Argus News WhatsApp channel. Cape Argus
IOL News
23-05-2025
- Business
- IOL News
Cape Town ratepayers push back against ‘unfair' budget as City promises expanded relief measures
The City of Cape Town has been criticised over their budget plans Image: Unsplash As the City of Cape Town prepares to table its 2025/26 municipal budget, the Cape Town Central Ratepayers' Association (CTCRA) has accused it of sidelining residential stakeholders and pressing ahead with what they call steep and disproportionate rates hikes—despite a petition signed by over 10,000 residents opposing the move. CTCRA Chairperson Bas Zuidberg said the public participation process was undermined from the start. 'We requested an extension of 14 days to allow for broader public input, which was denied. To date, we have had no direct engagement with the City—only through ward councillors and the press,' he said. Zuidberg warned that many residents—particularly those with properties valued between R3 million and R7 million—face increases in the high double-digit percentages, depending on their utility usage. 'What's deeply frustrating is that the City made significant last-minute changes to the draft budget just three days before the deadline for comment, without any explanation or consultation. Ratepayers had no opportunity to respond to the full scope of these changes,' he said. A major sticking point has been the introduction and structure of fixed service charges, especially the cleaning tariff. 'The City has chosen a paternalistic approach: 'we know what's best for you'. But the reality is that 25% of properties are now paying for 60% of services. That is neither proportional nor fair,' said Zuidberg. CTCRA argues that alternative revenue options, such as a modest overnight tourist tax, should be explored to offset the need for sharp increases in residential rates. 'The City didn't do its homework. It didn't consider spreading investments over a longer term, or cutting fat in the system before turning to ratepayers for more money,' Zuidberg said. The association warns that many long-time residents, including pensioners, are now being priced out of their homes. 'People are being told they're living above their means and should simply move. That's not a 'budget of hope' for them,' said Zuidberg. Civic activist Sandra Dickson, founder of Stop COCT, echoed the frustration. 'The range of increases to our total municipal bills currently ranges from 5–24%. This is multiples of the current inflation rate,' she said. 'The City persists with the four Fixed Charges (two new) without proportionally reducing the consumptive portions of the tariffs.' 'This link to property values to determine Fixed Charges is not a true reflection of the City's costs to provide the services. This budget is a disaster in the making as it is not balanced, it is out of proportion, not linked to inflation and purely designed to extort money from already struggling ratepayers.' In response to the growing backlash, the City issued a statement outlining upcoming changes to the budget and public participation process. Mayor of Cape Town, Geordin Hill-Lewis said balancing the national Budget should not come at the expense of municipal infrastructure grants or service delivery allocations. Image: Henk Kruger / Independent Newspapers 'The City of Cape Town will next week table expanded rates relief measures and other changes to the budget. The public will have an opportunity to comment on changes to the City's proposed budget for 2025/26 following the tabling at the City Council's sitting on Wednesday, 28 May. Amendments resulting from the latest National Budget tabled this week will also be adopted before the start of the new financial year." The public will be able to comment from 28 May to 13 June on proposed changes to the City's Invested in Hope budget for 2025/26. "Cape Town has tabled a South African-record R40bn infrastructure budget, the widest social relief net of any city, and next week we'll table measures for even further relief on monthly bills, which are already the lowest of SA's cities, despite Cape Town delivering better services and public value compared to other metros. 'We've listened carefully to Capetonians and will propose expanded relief measures to further soften monthly bill increases in addition to the major electricity price relief for all households," the City said. The City's Mayoral Committee this week considered a report on public participation, including a petition calling for the raising of residential electricity prices instead of a City-wide cleaning charge. Our modelling shows this will negatively impact households and that it is better to pursue other relief measures. The City said it is also not feasible to phase out critical and urgent infrastructure upgrades as the petition requests. "Cape Town will not follow the path of decline seen in other cities, and there are no non-urgent major infrastructure projects in our capital budget. 'We've thoroughly examined the budget to find innovative means to further soften the impact on monthly bills and will table these amendments at Council for public comment from 28 May – 13 June. Amendments to commercial tariff structures will also be tabled,' said Mayor Geordin Hill-Lewis.' [email protected] Weekend Argus
Eyewitness News
19-05-2025
- Business
- Eyewitness News
45 ratepayer associations call on CoCT to mitigate proposed municipal tariff hikes
CAPE TOWN - A collective of 45 Ratepayers Associations is calling on the City of Cape Town (CoCT) to create additional revenues to mitigate proposed municipal tariff increases. The proposed tariff structure, which is set to be implemented on 1 July, could see ratepayers forking out up to 40% more for municipal bills. Homeowners face paying fixed charges for water, sanitation, and a new city-wide cleaning tariff, all based on property value. The Cape Town Collective Ratepayers Association (CTCRA) has garnered more than 10,000 signatures from homeowners across the metro to petition against the city's proposed rate increases. ALSO READ: Thousands of ratepayers call on CoCT to relook its proposed rate increases CTCRA spokesperson, Bas Zuidberg, said the collection is calling on the city to offer ratepayers more relief. "Besides budget cuts, we also need to look at additional revenue, such as a tourist tax that can make sure the burden on homeowners is lightened." Zuidberg said the collective believes rates and charges should not be based on property value. "Secondly, to return to the fixed charges as they were in previous years without the link to property values, since the Municipal Systems Act requires charges to be fair and in proportion to usage of the service." The city said measures to reduce the tariff increases will be considered at a council meeting on 29 May.
