What will your Rate Payers Association do?

by | Dec 8, 2025

Why is the City of Cape Town municipality doing something that is not in our best interest?

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Legal proceedings over the City of Cape Town’s fixed tariffs intensified this week as the City defended its approach to charging for essential services. The dispute centres on whether certain charges, in particular fixed water, sanitation, and refuse tariffs linked to property values, are legally permissible.

The South African Property Owners Association (SAPOA) and AfriForum have heroically brought an application asking the Western Cape High Court to declare three tariffs in the City’s budget unconstitutional:

  • the Cleaning Tariff
  • the Fixed Water Charge
  • the Fixed Sanitation Charge

Their argument is that these tariffs operate like property rates, but are not treated as such in law, and therefore exceed the City’s lawful powers.

 

The City’s questionable counter-move

In its counter-application, the City has taken the unusual step of challenging national legislation if it loses the case. It argues that Section 75A of the Municipal Systems Act, the section governing municipal service charges, is unconstitutional if interpreted in a way that prevents the City from levying the disputed fixed tariffs.

According to the City, the inability to apply fixed charges would weaken its ability to recover costs and deliver basic services equitably. For this reason, it has asked the court to declare aspects of the Systems Act invalid should SAPOA and AfriForum succeed.

Why would the City do something that is clearly not in our interest?

 

What will your Rate Payers Association do?

Residents’ organisations across the metro are watching the proceedings closely. Ratepayers’ associations typically engage on budget matters, service delivery and tariff structures that affect households and businesses.

The court’s decision will likely have long-term implications for municipal finance, property owners, and the balance of power between local and national government. For Cape Town residents, the judgment may determine how future service tariffs are designed and who bears the costs. What will your Rate Payers Association do if the City wins? Make sure that you are an active member of your local Rate Payers Association so that you can find ways to defend your community.

Either way, we need to muscle up and organize ourselves to do what is in the interest of our community. This means engaging with the current political system, but knowing that this system is narrowing and has been behaving unethically, we also have to build outside of the current political system.

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