SAPOA has raised concern on certain issues emanating from the City of Cape Town’s recently published draft 2025/2026 Draft Budget out for comment, 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 Draft Budget proposes an average increase in property rates of 7.96% with fixed water charges to be determined by property value; the introduction of fixed sanitation charges, to be similarly determined by property value, and the introduction of a city-wide cleaning tariff, also based on property value.
SAPOA says it has addressed urgent correspondence to the executive management of the City of Cape Town, highlighting its concerns regarding these proposals, including the above-inflation rates increase, which it notes is unsustainable and contrary to National Treasury Guidelines; the methodology for calculating fixed water and sanitation charges based on property value – which 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, and the cleaning tariff which 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,” it says.
“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 says that it plans to meet with the City Executive on an urgent basis to discuss these concerns, with the aim of having them removed from the Budget.
