Latest news with #CTCRA
Zawya
26-05-2025
- Business
- Zawya
Massive public outcry over Cape Town's controversial 2025/26 budget proposals
The City of Cape Town has received significant public pushback to its proposed R84.1bn 2025/26 budget, with more than 14,000 submissions received during the public-participation process held from 28 March to 2 May 2025. The objections focus on the proposed tariff structure, which is based on property values and includes fixed charges for water and sanitation (as opposed to being based solely on estimated volumetric usage), as well as a new city-wide cleaning charge to fund street sweeping and the removal of illegal dumping. This has prompted more than 10,000 residents to sign a petition against the reforms. The petition is led by the City of Cape Town Collective Ratepayers' Association (CTCRA), which represents over 45 ratepayer groups. Critics argue that the removal of cleaning charges from electricity bills—under pressure from National Treasury—has simply led to their reintroduction as separate levies. While the city claims electricity tariffs will only rise by 2%, experts note this is misleading and does not reflect the full impact on ratepayers, especially those in Eskom-supplied areas or with solar power. City officials said while the proposed budget is meant to protect households under R2.5m, it has heard the concerns of ratepayers in higher-value properties particularly those of the NRPA and the Fish Hoek Valley Ratepayers' and Residents' Association who warned that the budget's structural changes could result in monthly increases of up to 30% for many households — especially those in properties valued above R3m. Fixed-charge backlash Keith Barton, chairperson of the Bergvliet Meadowridge Ratepayers' Association, says the draft budget unfairly shifts the burden onto middle- and upper-income households through steep increases in fixed charges linked to property values. 'If approved, this budget will cause financial strain for many middle-income homes. "A typical R4.2m property in our suburbs would pay R920 more per month in fixed charges — irrespective of the amount of electricity and water consumed. Households with solar and boreholes using minimal City services could see monthly municipal bills rise by over 30%. 'The City says this new structure ends the past practice of cross-subsidising other municipal services via electricity sales. We do not believe that municipal charges should be so heavily skewed towards a property's value instead of its consumption of services. 'However, we believe that, if the City is hell-bent on this method of imposing charges, it should mitigate the effect of the increases by adopting a phased approach that gradually phases out cross-subsidies while incrementally introducing the new fee structure over several years instead of doing this in a single budget cycle,' Barton said. City rethinks tariffs On the back of this public outcry, sources say that the City intends to amend and republish the budget, followed by an additional two-week public-consultation period. While the City has not officially confirmed this, it acknowledged that it is considering steps to ensure the final budget is legally adopted before the new financial year begins on 1 July 2025, in accordance with the Municipal Financial Management Act. Relief measures proposed In response to the outcry, Mayor Geordin Hill-Lewis has proposed potential relief measures, including extending rates-free thresholds, easing pensioner-rebate criteria, and reducing cleaning charges for certain properties. Despite the criticism, the City maintains that its service delivery is superior to other metros and that major infrastructure upgrades—costing R40bn—are necessary. However, the CTCRA argues that these upgrades could be phased in more gradually and calls on the City to explore alternative revenue streams rather than disproportionately targeting ratepayers. With limited time left before the 1 July implementation deadline, the City faces pressure to amend the budget and still comply with legal and administrative requirements. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
IOL News
26-05-2025
- Business
- IOL News
Cape Town residents voice concerns over proposed budget hikes
The Cape Town Collective Ratepayers' Association (CTCRA) says over 10 000 residents signed a petition opposing the City's budget, but their concerns have been dismissed and meaningful engagement remains lacking. Image: Supplied Concerns are mounting among residents over the City of Cape Town's proposed 2025/26 budget and its impact on property rates. Bas Zuideberg, chairman of the National Property Ratepayers' Association has voiced concerns about the lack of engagement with residential ratepayers, highlighting a petition signed by over 10,000 residents opposing the hikes that was dismissed by the City. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. 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Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ As the deadline for budget approval looms, ratepayers are calling for transparency and fairness in the proposed changes, warning that rising costs could push long-term homeowners out of their properties. When asked whether public participation had been extended as requested, Zuideberg said the CTCRA had asked the City to extend public participation on the budget by 14 days, but this did not happen. According to him, the CTCRA has had no direct interaction with the City on the budget aside from discussions with ward councillors and press reports. While commercial ratepayers' groups were contacted, residential ratepayers were largely excluded from consultation. He also noted that the City made changes to the draft budget just days before the deadline without publishing details on how these changes would affect different homeowner categories. Regarding the City's relief measures, the CTCRA acknowledges the need for investment in infrastructure and support for vulnerable residents. However, Zuideberg argued the City did not consider spreading investments over a longer period or seeking alternative revenue sources before deciding on rate increases. The association points out inefficiencies in the City's budget and calls for fairer fixed charges that do not disproportionately affect certain homeowners. They also suggest the City explore new revenue options such as a tourist overnight tax, which could raise significant funds without burdening residents. Concerning residents' ability to afford the increases, Zuideberg warned that many long-term homeowners could be priced out of their properties as rates rise faster than incomes. Without changes, some may be forced to sell, exacerbating housing shortages and disrupting communities. The association also highlighted the impact of short-term rentals and called for policies to address this growing issue. Despite these concerns, Zuideberg expressed scepticism that the City would listen to residents' input. "The CTCRA is working with ward councillors to raise objections and is exploring legal challenges should the budget proceed unchanged," he said. In response, the City of Cape Town said that it would table expanded rates relief measures and other budget changes at the City Council meeting on Wednesday. The public will be able to comment on these amendments from Wednesday May 28 to Friday June 13. Mayor Geordin Hill-Lewis said: 'We aim to soften monthly bill increases even further, on top of the already significant electricity price relief for households.' He added: 'Cape Town's monthly bills remain the lowest of any major South African city, despite delivering better services and public value.' Addressing calls to shift the cleaning charge to electricity tariffs, Hill-Lewis said, 'Our modelling shows this would negatively impact households, so this option has been dismissed.' He also reassured residents that no non-urgent major infrastructure projects will be delayed. "We remain committed to maintaining Cape Town's high service standards," Hill-Lewis said. 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.
Eyewitness News
19-05-2025
- Business
- Eyewitness News
Thousands of ratepayers call on CoCT to relook its proposed rate increases
CAPE TOWN - Thousands of ratepayers are calling on the City of Cape Town to relook its proposed rate increases, which could see homeowners paying up to 40% more for municipal bills. The proposed tariff structure, which is based on property value, will introduce fixed charges for water, sanitation and include a new citywide cleaning tariff. A petition to challenge the proposed rate hikes has garnered more than 10,000 signatures from homeowners across the metro. The Cape Town Collective Ratepayers Association (CTCRA) is calling on the City of Cape Town to offer ratepayers relief from its proposed municipal rate increases. City officials said while the proposed budget is meant to protect households under R2.5 million, the city has heard the concerns of ratepayers in higher value properties. Social justice activist Sandra Dickson said the proposed rates charges should not be based on property value. "Ratepayers will settle for nothing less than a complete relook at the myriad of fixed charges, removing them and removing the link to property value, which is used to extort money from ratepayers." The city said rebates for homes valued at R7 million and below and lower citywide cleaning charges are among the budget changes the city council will consider on 29 May.
