Ratepayers challenge City budget

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 (NRPA) and spokesperson for the Cape Town Collective Ratepayers' Association (CTCRA), has shared some of the top frequently asked questions his group has received about the budget, along with the association’s responses.

The CTCRA has voiced strong concerns over the budget, highlighting a lack of meaningful engagement with residential ratepayers. 

They also question the fairness of the planned rate increases, especially in light of last-minute changes to the draft budget and the City’s dismissal of a petition signed by over 10 000 ratepayers opposing the hikes.

When asked whether public participation had been extended as requested, Mr 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, Mr 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, Mr 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, Mr 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 in a media release today, Friday May 23, that it would table expanded rates relief measures and other budget changes at the City Council meeting on Wednesday May 28. 

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, Mr 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," Mr Hill-Lewis said.