Residents of Cape Town are expressing concerns that rising municipal bills could become unaffordable for residents, especially pensioners and households on fixed incomes.
The Cape Town Collective Ratepayers' Association (CTCRA) issued a serious warning regarding the worsening 'tariff affordability crisis,' which is caused by the city's current approach to budgeting and the results of the municipal valuation.
This umbrella organization represents 45 ratepayers' associations and civic groups across Cape Town, covering approximately 100,000 residential properties. The association expressed concern that utility bills are unsustainable for residents, particularly pensioners with fixed incomes.
While acknowledging Cape Town as a relatively well-managed metropolis with necessary infrastructure ambitions, the association criticized the City's 'top-down' budgeting approach. According to the association, the municipality first determines a total target expenditure, then subtracts expected revenue from non-paying ratepayers, and assigns the remaining amount to property owners.
The association's internal analysis shows that without policy changes, Cape Town residents will face an average bill increase of 10% annually in the foreseeable future, which is roughly three times the current inflation rate. It is also noted that over the next three years, the city's total expenditure will increase by 20%, and the share financed directly by ratepayers will rise from 68% to 72%.
The association stated that 'municipal bills currently exceed medical and insurance expenses,' citing unofficial resident accounts questioning their ability to remain in their homes.
The association also raised issues concerning the Municipal Valuation Roll. Although property valuations reflect general trends in the housing market, CTCRA pointed out significant internal discrepancies between comparable homes, with property value adjustments varying from 0% to over 100%.
Furthermore, the association opposed city mechanisms that link basic service charges, such as water supply, sanitation, and city cleaning, to property valuation rather than actual consumption. Citing previous High Court rulings, the group argued that linking charges to property value effectively functions as an unauthorized second property tax.
To alleviate pressure on local households, the association strongly urged the City of Cape Town to launch an official cost optimization program. Key proposals include expanding revenue from non-paying ratepayers: seeking greater contribution from the national government and generating income from tourists using city infrastructure.
It is also proposed to audit municipal operating costs to eliminate inefficiencies, postpone non-essential projects, and ensure the City does not 'live beyond its means.' Furthermore, transparent reporting is required, including regular public updates on cost-cutting initiatives, similar to updates on beach water quality and reservoir levels.
Despite the City reporting a historically low level of formal valuation objections at 7,000 cases, which municipal officials interpreted as consent, the association insists that this low figure reflects widespread dissatisfaction among ratepayers with the objection process. The association stated that it will continue to engage directly with city officials on the budgeting process to protect property owners.