(Photo: Jhua-Nine Wyrley-Birch/Maroela Media)
The City of Cape Town will not appeal against the Cape Town High Court’s ruling regarding the metro’s declared illegal fares.
The metro is now simply going to make another plan to assist lower and middle income households, says Geordin Hill-Lewis, the mayor of Cape Town.
This plan entails that all residents pay the same fixed rates, but that lower and middle income households with so-called lower valuation properties enjoy greater discounts on property taxes.
In an interview with Maroela Media, Hill-Lewis said that the metro relies on the Cape Town High Court’s ruling that the metro’s implementation of its tariff model for a cleaning charge is illegal, unconstitutional and invalid.
The rates included a cleaning charge and fixed rates for water and sanitation which are calculated on the basis of the property value. However, this made Hill-Lewis and his administration unpopular with some Cape Town residents and they were eventually dragged to court over it.
Geordin Hill-Lewis in his mayoral office. (Photo: Jhua-Nine Wyrley-Birch/Maroela Media)
“The court said that the principle of fixed levies to fund infrastructure is supported and completely understandable. The principle of cross-subsidization is also supported and understandable. But you can’t use property values.”
“And we accept that,” says Hill-Lewis.
However, the metro still believes cross-subsidisation – where more affluent residents help fund services for less affluent residents – is the fairest way to fund infrastructure for all residents.
This is why the metro has now come up with a different plan.
This new plan entails that all residents pay the same fixed charge, but that there is a greater discount on property tax for properties with a lower value.
“Ultimately, the total municipal bill is the same for the lower-income households,” says Hill-Lewis.