More organisations join legal battle to stop City of Cape Town's tariff hikes

CIVIC organisation SA1st Forum has become the latest to join in the court battle challenging the City’s new fixed rate charges, saying the extent of these municipal increases will make ordinary citizens find it hard to keep up with maintaining their households. 

The South African Property Owners Association’s (SAPOA) was the first to haul the City before the courts over its decision to link specific fixed charges to property values.

SAPOA and other organisations, including SA1st Forum, want the increases to be set aside and for the City to undertake a "lawful, participatory, and transparent review process in order to produce a budget and tariff increases that are more affordable by the people of Cape Town”.  

The matter is expected to be heard in the Western Cape High Court next week. 

SA1st Forum argues that the City’s public participation process was flawed and wholly inadequate and failed to comply with Section 16 of the Municipal Systems Act; the unaffordability of the tariff increases for ordinary residents and ratepayers in violation of section 3(3) of the Municipal Property Rates Act 6 of 2004 and section 4(2) of the Municipal Systems Act.

“The untransparent manner in which the City Council conducted the public participation process in violation of Section 195(1)(e ) and (g) of the Constitution; (d) The budget is not pro-poor as claimed.”

The organisation also criticised the City for spending ratepayers’ money on responsibilities that fall under national government, such as policing and passenger rail. In addition, they pointed out that the City allocates billions to such projects, including millions spent on hosting what they describe as “vanity” events like the Formula E race.

“Ratepayers are already paying taxes to the national government to deliver such services. We are firmly of the view that the last thing we need in this City, burdened by a weak economy and a fiscus under so much pressure, are unaffordable and Rolls Royce projects seemingly to give effect to this mantra of Cape Town being a world class city. 

“The City Council has a top-heavy staff complement being employed at royal salaries and vanity projects that the fiscus simply cannot afford without milking the ratepayers and the selling off of some strategic assets.

"We submit that the City Council should provide a service to us as residents and ratepayers and the rates and charges should reflect the cost of those services. Instead of increasing the rates and services to levels much higher than inflation, the focus should rather be on extracting better value from existing operations and focus on delivering affordable and decent services without breaking the bank. In essence we are asking the mayor and his administration to live within their/our means,” court papers read.

The City said this was an ongoing court matter and would respond in due course. They referred the Cape Times to mayor Geordin Hill-Lewis’ July media statement. 

“The City’s budget protects homes under R2,5m and extends rates relief to many more middle-class homes, all while preserving the City’s critical infrastructure and service investments. In contrast, this court application by the richest of the rich property portfolio holders seeks to go back to a system of regressive taxation which hits ordinary families, and the poor, the hardest,” said  Hill-Lewis.

Cape Times