Dear ratepayer,
All property owners will have received their July rates bill, which contained a nasty surprise in the form of a sharp increase. This communication is to explain what has happened and what the NRPA has done and continues to do on this subject.
First let’s look at what has changed on July 1st 2025:
- Average increases for property rates (first line on the bill) stand at ~8%, yet total bills (especially for higher-value properties) could rise by 20–40% in some cases due to increases in other charges or the introduction of new charges
- The City of Cape Town (CoCT) introduced 2 new fixed charges (sanitation for those connected to CoCT sewage and city-wide cleaning for everyone) which are both linked to property value. Residents with septic tanks are not charged for sewage. City-wide cleaning (says CoCT) was previously paid for through an additional charge on electricity units. The cost of electricity units has not gone up much to compensate for this separate cleaning charge
- Fixed service charges for water are now linked to property values, replacing pipe-size levies.
- CoCT has said that these increases are needed to fund a large increase in infrastructure spending (R40 billion in 3 years) and law enforcement capacity. They have not compensated these increases by reducing the budget in other areas, or by finding additional revenue sources.
- After considerable push back from the public concessions (see below) were made to ‘soften the blow’
NRPA, as member of the Cape Town Collective Ratepayers’ Association (CTCRA), objected to these increases on the following grounds:
- The increases (10-20% for properties between R5m and R15m) are far higher than inflation rate and therefore unaffordable for many residents who live off a pension or other fixed income source. With ever increasing valuations there is a real risk of municipal charges becoming unaffordable to increasingly large parts of our community
- We believe that CoCT did not make enough efforts to compensate the additional expenditure on infrastructure and law enforcement through budget cuts in other areas, or through additional revenue such as a tourist overnight tax
- We believe that linking fixed charges to property values is unlawful. CoCT may charge fixed connection levies for water and sewage but these should be a flat rate (as they are for electricity)
- We oppose the introduction of a separate city-wide cleaning charge. Instead, this is a service that like many others should be funded through the property rates. The added advantage of this alternative is that property rates do not collect VAT, while a separate charge does
- Everyone should pay for their electricity/water/sewage connection, however small the fee is, since things that are not paid are also not valued. This should be a basic principle and does not necessarily interfere with subsidisation of disadvantaged households
In an unprecedented show of dissent 14,000 residents objected to the first draft budget, many through a petition that NRPA and other Ratepayer Associations circulated among the community via mailings, facebook and whatsapp. These objections led to the following concessions in the second draft budget:
- Expanded R450k Rates-Free threshold from property values of R5 million to R7 million
- Reduced Fixed Water Charges for properties between R1 million and R25 million
- Reduced Cleaning Tariff for Residential Properties and vacant land under R20 million
- Income threshold for pensioner rebates raised from R22,000 to R27,000/month and rebate levels expanded
The second draft was approved by city council on June 28th.
While these concessions are welcome (they equate to approximately R500/month reduction for an average Noordhoek property), NRPA is of the opinion that the overall increases for the average household are still too high, and that the principle of linking fixed charges to property values is unlawful and must be changed. Of course we are also deeply disappointed that the public participation processes have proven again to be ineffective, with valid points being ignored by CoCT.
It is therefore that the NRPA has decided to join CTCRA in supporting a high court case that the South African Property Owners’ Association (SAPOA) is bringing against CoCT. This case is specifically aimed at the linking of fixed water and sanitation charges to property values and at the city-wide cleaning charge, which should not be funded through a separate charge, but through property rates. In a reaction the Mayor framed the high court case as one of “rich people opposing progressive taxation”, but this is factually incorrect. The current municipal taxes are already progressive. What is being opposed is the lawfulness of the mechanism that CoCT is applying to determine fixed charges.
This article is a nice summary of the current state of affairs should you want to read more background information: https://www.moneyweb.co.za/news/south-africa/its-the-middle-class-that-is-opposing-cape-town-tariffs/
You may also have heard or read in the news last week that high court cases were brought in Tshwane and Johannesburg against related fixed charges. In both those cases the municipality lost, which is encouraging while we wait for the Western Cape high court ruling on 17 & 18 September.
In the meantime, the following is important for ratepayers to note:
- The August municipal bill will be even higher than the July bill, since the increase in property rates (first item on the bill) only came into effect halfway through the bill period. The August bill will be the first where a full month is charged with the higher tariff
- The SAPOA high court case will not necessarily reduce your rates. If successful, CoCT will have to revisit the budget and make adjustments (within the boundaries of the law). We will have to wait and see what the outcome is. CoCT may also decide to appeal the decision
- Soon the 2025 valuation roll will be upon us. NRPA is expecting substantial increases in valuations in Noordhoek due to recent prices paid on the property market, which will have a knock-on effect on municipal bills. We will be organising a repeat of our 2023 workshop to unpack the appeal process for property owners
- There have been calls for a rates boycott on some social media channels. NRPA advises against this course of action, since you may become liable for penalties and could have your electricity and water cut off after 3 months of non-payment
Please reach out to the email address below should you have additional questions.
PS: should you be reading this while you are not yet NRPA member then please consider becoming member. Not only does the R300 annual membership fee help us to support some of the incredible work that other people are doing in the valley but (more importantly) it helps us – by being able to represent more ratepayers – in our efforts to protect your interests.
Visit nrpa.org.za to become a member.
Bas Zuidberg
Chairman NRPA
Chairman@nrpa.org.za