Geordin Hill-Lewis, Cape Town Mayor (Photo: Facebook)
The City of Cape Town will analyze the court ruling on its illegal rates and consider its appeal options.
The High Court in Cape Town ruled in AfriForum’s favor and determined that the Cape Town Metro’s implementation of its controversial tariff model for a cleaning charge is illegal, unconstitutional and invalid.
The controversial rates involve a cleaning charge and fixed rates for water and sanitation which are calculated on the basis of the property value.
However, according to Geordin Hill-Lewis, the mayor of Cape Town, the court order will be suspended if the metro appeals.
“It remains my firm belief that Cape Town cannot truly work unless it works for everyone. Every resident of every community depends on a future where everyone has access to basic services and infrastructure that create opportunities for work and growth. Cross-subsidisation – where those who are better off help us finance services for the less fortunate – is the fairest and most sustainable way to ensure a working city of hope for all.”
The point of using property values to determine fixed costs is to protect lower- and middle-income households, says Hill-Lewis. “The only alternative to this is that everyone has to pay a fixed cost, regardless of whether they are low-income or wealthy.
“The implication of the ruling could be that fixed costs rise for many families and fall for more affluent families. That is the perverse implication of this ruling, and why we will need to carefully consider how best to protect middle- and lower-income households.”
According to Hill-Lewis, the only other option would be to cut the metro’s infrastructure budget. “This would lead to a less functional city with less basic dignity for residents – a terrible and indefensible implication. We do not agree with this plan of action at all. Investment in infrastructure is at the heart of what makes a city work for everyone, and a growing economy.”
Hill-Lewis said another implication of the ruling, if it is not appealed, is that citywide cleaning costs are moved back to the property tax bill rather than being charged as a rate.
It is important to note that the citywide cleanup costs do not generate new revenue and the service still needs funding regardless of the ruling on how it is charged. Residents have always contributed to this service, including through electricity purchases. From 2025-26, city-wide cleaning was simply removed from electricity, which reduced prices and is shown separately on the monthly bill. In this way, waste management has become a self-financing service with delineated income.”
Hill-Lewis said the Cape Town Metro’s reforms are in line with the National Treasury’s reform programme, which has already made more than R400 million in incentive grants available to Cape Town. “This is part of a multi-billion rand funding pipeline in the coming years, thanks to the metro’s sustainable water, sanitation, electricity and waste services.”