# Municipal tariff reforms get serious pushback

- Link: https://dearsouthafrica.co.za/news-2/municipal-tariff-reforms-get-serious-pushback/
- Published: 2025-05-15T13:15:36+02:00
- Author: dearSA

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### Municipal tariff reforms get serious pushback

#### Public participation platform DearSouthAfrica.co.za has launched a campaign encouraging South Africans across the country to have a say on increases proposed by their local municipality. To date, Over 46,000 angry residents have voiced their concerns.

![Municipal tariff reforms get serious pushback](https://cdn.dearsouthafrica.co.
za/wp-content/uploads/2025/05/15131507/Media-release-header-COCT.jpg "Media release
header COCT")

![DEAR-SOUTH-AfFRICA](https://cdn.dearsouthafrica.co.za/wp-content/uploads/2023/
02/08135845/DEAR-SOUTH-AfFRICA.png "DEAR-SOUTH-AfFRICA")

Property rates, electricity, water, sanitation, and refuse removal are just some
of the services that will see an increase in fees. Some municipalities have introduced
new services that carry additional fees. What this means is that some residents 
will end up paying 20-30% more for municipal services, severe enough to force some
to sell their properties.

**However, it seems the City of Cape Town is buckling under popular pressure**, 
after noisy protests against its proposed tariff reforms which include fixed charges
for water and sanitation, as well as a city-wide cleaning tariff based on property
values.

>  Residents have suddenly become activists and a petition has been launched to 
> block the City’s proposed new tariff system.

Cape Town has big ambitions, with plans to spend nearly R40 billion in the next 
year to maintain its status as a world class city. It has become a victim of its
own success. Those who bought properties 10 or 20 years ago may have seen massive
increases in their property values due to foreign and local buying – but their incomes
have not kept pace. Now they are forced to face the reality of what it means to 
live in a city with property values shooting up much faster than other parts of 
the country.

The City uses Computer-Assisted Mass Appraisal (CAMA) software, which compares property
sales data across about 885,018 rateable properties, of which 719,681 are residential,
and extrapolates this to come up with average market values.

#### This leaves plenty scope for mistakes.

For example, low-to-middle income areas like Grassy Park could find properties being
overvalued due to CAMA’s reliance on area averages, meaning residents end up paying
substantially more for services.

For retirees in areas where properties are valued at R2 million or more could find
themselves hit with a 57% increase in water and a 100% increase in sanitation services.

Fixed charges for water, sanitation, and cleaning – based on property values – will
generate additional revenue, with 100% increases in some categories. These reforms
aim to diversify income beyond rates, reducing reliance on market fluctuations.

If you live in Cape Town, you can view your property value here: available at www.
capetown.gov.za/propertyvaluations

If you disagree with your property valuation, you have 60 days to lodge grounds 
for the objection, along with documentation – such as comparable sales data to show
your property is overvalued.

Alongside Dear South Africa’s call for public participation, a petition organised
by the City of Cape Town Collective Ratepayers’ Association (CTCRA), which represents
more than 45 residents’ and ratepayers’ organisations, has so far collected more
than 12,000 signatures.

The petition argues that the proposed changes violate the Municipal Systems Act,
prejudices those who draw power from solar and direct from Eskom, while forcing 
those in central improvement districts (CIDs) to pay twice for cleaning services.

Another complaint is that fixing tariffs for water, sanitation and cleaning services
to property values is unlawful and violate the Municipal Systems Act’s obligation
to charge equitable, usage-based fees.

The South African Property Owners Association (Sapoa) weighed in with objections
of its own, arguing that the new cleaning tariff is nothing but a new tax, which
the City is prohibited from levying under the Municipal Fiscal Powers and Functions
Act.

The City has countered what it considers misinformation regarding the likely increase
in electricity tariffs – arguing the increase is as low as 3% for a R3 million home
using 750 units of electricity.

It is nevertheless considering softening the tariff impact by expanding rates exemptions
of R450,000 for homes beyond the current R5 million value threshold. It also proposes
raising the pensioner rebate beyond the current R22,000 a month income limit. Another
proposed concession is to reduce cleaning charges for properties valued between 
R2.5 million and R7.5 million.

Cape Town is clearly pulling away from the rest of the country in terms of services
and quality of life, and that comes at a cost. It plans to spend R39.7 billion in
infrastructure over the next year, to maintain its image as the “city of hope”.

Mayor Geordin Hill-Lewis points out that even with the new tariffs, Cape Town homeowners
in the R2.5 million bracket are still R700 better off each month than a Joburg resident
with the same property value.

Have your say on increases proposed by your municipality on the public participation
platform [here](https://dearsouthafrica.co.za/budget-22-23/) right away.

[ View more info](https://dearsouthafrica.co.za/budget-22-23/)