Ratepayers challenge unfair water and sewage charges

The City of Cape Town Collective Ratepayers Association ( CTCRA)  argues that linking fixed water, sewage, and city-wide cleaning charges to property values unfairly impacts sectional title owners, leading to increases of 30% or more – double those for similar properties outside sectional title developments.

They contend that the City’s rates calculator did not account for sectional titles, potentially leading to underrepresentation in public participation, and that the City did not fully consider the impact before implementing these changes.

The CTCRA is a constituted association with 40 member ratepayer associations and civic organizations.

It has filed an additional affidavit to the Western Cape High Court case which was brought via the South African Property Owner’s Association (SAPO) which challenges the City’s 2025/2026 budget.

The association maintains that fixed water and sewage charges should be linked to actual costs, not property values, and that a separate city-wide cleaning charge is unlawful, advocating for its funding through property rates to ensure fairness and avoid VAT.

They believe these changes would create a fair and equitable solution as intended by the Municipal Systems Act.

The answering and submitting affidavits were shared with the Cape Argus, in which Bas Zuidberg, CTCRA chairperson, highlights specific issues: Fixed water charges: Now per unit instead of per development, causing up to 900% increases for some units, fixed sewage charges: new per-unit charge significantly increases costs for sectional titles compared to cluster developments, City-wide cleaning fee: new per-unit charge for sectional titles, despite owners already paying body corporates for common area cleaning.

In a statement shared,  CTCRA submitted  additional affidavit in SAPOA high court case against the City, which was officially constituted on August 4, has submitted an as amicus curiae.

“In the additional affidavit CTCRA makes the following points: The linking of fixed water, fixed sewage and city-wide cleaning charges to property values is leading to increases of 30% and more in monthly bills for owners of units within sectional title developments,” it stated.

“These increases are double those for properties of similar values outside of sectional title developments (which are already unfair to middle class owners).

“The increases stand in sharp contrast to the increases for cluster developments of the same cumulative value, but which have not been sectionally titled, due to the structure of the property valuation bands.

“These increases have come as a surprise to sectional title owners, since the CoCT rates calculator did not cater for this category of ownership. CTCRA believes that this would have led to an underrepresentation of this group of owners in the public participation process for the budget.

“Given the evidence presented in the affidavit, the City does not appear to have fully considered the impact of the new link to property values before enacting it.”

 CTCRA said they continue to hold the view that the linking of fixed water and sewage charges to property value bands is unlawful and instead it should be linked to the actual cost incurred by city. 

“Doing so would also address the disparity between sectional title and cluster developments described above.

"Strictly speaking, owners in sectional title units should pay lower fixed water & sewerage charges to the city, since the body corporate manages their local infrastructure as well as the collection of these charges from individual units, which reduces the city’s maintenance and administration costs.

“Creating a separate City-wide cleaning charge is unlawful. Instead these activities should be funded out of the property rates, where, due to the linear nature of the rate-in-the-rand, all property owners will be charged fairly and progressively, irrespective of the property value band. Additionally, this will remove the VAT currently charged on the city-wide cleaning tariff.

"Implementing these changes will constitute a fair and equitable solution for all property owners as intended under the Municipal Systems Act.”

In Zuidberg’s submission via the affidavit, he said they were of the view two solutions were possible: “Fixed charges for water and sewage should be determined per connection, applying a consistent approach to both sectional title and cluster developments

“The city-wide cleaning charge should be levied through property rates using a "rate-in-the-rand mechanism" to ensure fairness and avoid VAT.”

When approached for comment , the City said it is a court matter.

SAOP was also approached for feedback on the matter but did not respond.

In a over 600 page answering Affidavit which includes Mayor Geordin Hill-Lewis’ affidavit, the city cited that they opposed the relief sought.

The Mayor said the budget compiled nationally using the Division of Revenue Bill - that the total national allocation to the City is R9, 590 billion in 2025/2026, decreasing to R8.902 billion in 2027/2028.It said this allocation consists of the Local Government   Equitable Share and infrastructure grants.

It added that as of June 2025, 12 196 properties, which is approximately 1.8 % of all metered connections which are recorded in the city's database was registered as having boreholes or well.

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