Object to the Draft 2025-26 budget for Cape Town

To: Council of the City of Cape Town
Subject: Objection to the Draft Budget for 2025–2026

Dear Sir/Madam,

I am signing this petition to formally object to the City of Cape Town’s draft budget for the 2025–2026 financial year. My reasons are outlined below:

1. Unrealistic Rates Increases
   Using the City's online rates calculator (https://web1.capetown.gov.za/web1/rtcalc/), I’ve found that my monthly rates are projected to increase by up to 30%. This is significantly higher than the current inflation rate of just 3.2% (as reported by Stats SA in February). And this is before any increase in my property value under the new valuation roll.
    
2. Excessive Increases Over Time
   While I understand the need to invest in infrastructure — especially in under-resourced areas — the proposed 11.4% budget increase is too high. It's more than three times the inflation rate and follows previous increases of 11.9% (2024) and 11.2% (2023).
   
   Many residents, including myself, simply cannot afford these continual hikes—especially those living in properties valued above R2 million. Homeowners with a single income or retirees earning more than R20,000 per month may face losing their homes.
   
   
3. Possible Breach of the Municipal Systems Act
   I believe the budget violates parts of the Municipal Systems Act 2020 (Articles 74(2)(b), 74(2)(d), 74(2)(h), and 74(3)) for the following reasons:
   • Tariffs based on property values: Fixed water and sewage tariffs are linked to property values in the draft budget, not actual service usage—this contradicts Article 74(2)(b).
   • City-wide cleaning fee: This service should be funded through general property rates, not a separate fee linked to property values (again breaching 74(2)(b)).
   • Unfair progressive levies: Basing levies on property value, rather than cost to the city, violates Article 74(2)(d).
   • Efficient use of resources: Reducing the cost of electricity for City power users provides an incentive to increase electricity consumption, violating 74(2)(h)
   • Discriminatory and inconsistent pricing: Fixed tariffs and rate-in-the-rand increases create unfair differences under 74(3). For example, a property valued at R10.001 million could pay up to 6% more than one valued at R10 million—an illogical jump that fails to follow a fair sliding scale. Also, these fixed service tariffs include VAT, further penalising properties valued over R2 million. 
     
     
4. Environmental and Fairness Concerns with Electricity Charges
   I believe lowering electricity charges to offset high property rates is the wrong approach. It encourages more electricity usage, which harms the environment and increases load-shedding risks.
   
   It also unfairly penalises residents who’ve invested in solar power, reducing their electricity use but still facing high property charges. This contradicts the City’s own sustainability goals.
   
   Meanwhile, residents connected to the Eskom grid (but still within city limits) don’t benefit from the electricity discount and still face the same property rate hikes—an unfair double burden.
   
   
5. Adjustment Needed for Property Value Threshold
   The current threshold for the R435,000 rates exemption applies only to homes valued at R5 million or less. Given the rise in Cape Town property values, this limit should be raised to R6 million to offer relief to more residents. While this increase in value is often seen as a positive indicator of a thriving city, it has also led to disproportionately higher municipal rates, even before this proposed hike.

   Property owners are being penalized for market-driven valuation increases over which they have no control.

In Summary: My Requests
To make the budget fairer and more realistic, I propose the City Council:

• Cut the overall budget to align with inflation—by reducing costs, improving efficiency, and spreading major projects over multiple years.
• Unlink fixed water and sanitation charges from property values—make them true “fixed” charges.
• Remove the city-wide cleaning levy—fund this through property rates like other municipal services.
• Increase electricity usage fees in line with inflation and lower property rates to balance the budget.
• Raise the property value threshold for the R435,000 exemption from R5 million to R6 million.

I am submitting my name, contact details, suburb, ward number, and email address as required. These will be shared with the Council through the Collective Ratepayers’ Association (CRA). The CRA is a grouping of 50+ ratepayer associations across the Cape Town Metro.

The information provided will be protected under the POPI Act.

PS: you will receive an email asking to confirm your email address (to make sure your not a bot!). Please click on the link in the email to confirm your objection. And don't forget to share this petition!

Cape Town Collective Ratepayers' Association (CTCRA)    Contact the author of the petition