Latest news with #CapeTownCollectiveRatepayers'Association
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
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
30-04-2025
- Business
- IOL News
Cape Town residents rally against proposed rate increases with new petition
The graph was taken from a thorough analysis conducted by Jon Lijnes, Noordhoek resident. As the deadline for public participation on the City of Cape Town's draft budget for 2025/26 approaches on May 2, the Noordhoek Ratepayers' Association (NRPA) is urging residents to sign a petition opposing the proposed budget. Initiated by the Cape Town Collective Ratepayers' Association (CTCRA) — a coalition of more than 50 civic organisations — the petition has gained significant traction, particularly among communities in the Far South. The petition raises concerns over the City's proposed shift to fixed monthly charges for essential services such as water, electricity, sanitation, and cleaning. These changes are not only seen as unfair but may also be legally questionable. Both the NRPA and the Fish Hoek Valley Ratepayers' and Residents' Association raised the alarm earlier this month, warning that the budget's structural changes could result in monthly increases of up to 30% for many households — especially those in properties valued above R3 million. The NRPA is particularly concerned about the financial burden these increases will place on residents, especially pensioners and those already struggling with rising living costs. The petition highlights several pressing concerns regarding the City of Cape Town's proposed budget for 2025/26 including rate increases of up to 30%, driven by higher property values; the City's move from usage-based billing to property value-based charges for essential services like electricity, water, sanitation, and cleaning; and 11.4% increase to the City's budget; Mayco member for finance, Siseko Mbandezi, when announcing the budget, said the City is investing R39.7bn in infrastructure over the next three years for better water and sanitation, roads, electricity services, public transport and more. He said for every R1 in property rates, Cape Town residents fund Policing, Traffic, Fire and Disaster services (29 cents); infrastructure investment (14 cents); free and subsidised services to the poor (15 cents); customer care, IT and service delivery (15 cents); parks, public spaces, environment and libraries (13 cents); MyCiTi public transport (six cents); economic growth, tourism and informal trading programmes (four cents); city clinics and health services (four cents). "There are also material changes in the tariffs for water and sanitation and urban waste management in the way that it is calculated and how it will be displayed on accounts, but not necessarily in the cost impact. Importantly, all income from rates and tariffs go toward paying for service delivery. "In general, it must be pointed out that the City of Cape Town offers the lowest property rates for commercial, industrial, and residential properties, based on an analysis of the 2025/26 draft budgets tabled by each metro. The rate-in-the-rand is a statutory formula used by municipalities to calculate property rates. The formula shows how much a person would pay in rates for every rand of their property value," said Mbandezi. Cape Argus
