The City of Cape Town has released its draft budget for 2025/26 which covers proposed changes to municipal rates and charges for 2025/26. The proposed increases are set to come in to effect from 1 July 2025. Full details of the budget proposal can be viewed at:
https://resource.capetown.gov.za/documentcentre/Documents/Forms%2c%20notices%2c%20tariffs%20and%20lists/DraftBudget2025-26_Advert.pdf
CoCT proposes to introduce two new charges to rates accounts based on property value. In addition, the City proposes to change the way of calculating the fixed charge for municipal water supply such that it will be based on property value. An bove-inflation increase is also proposed for the fixed charge for electricity.
For example, a typical residential property with a municipal valuation of R4.2 million would experience the following increases (inclusive of VAT):
- New city-wide cleaning tariff: approx. R477 per month
- New sewerage fixed cost: approx. R157 per month
- An increase of 113% in the fixed charge for water connection
- An increase of 39% in the fixed charge for electricity connection
If the budget is approved, these 4 increases alone will result in an amount of R920 (including VAT) that would be added to the monthly rates account from 1 July 2025 in the above example, regardless of how much water or electricity is used. Property rates, water consumption and waste collection charges are also set to rise by 7- 8% frm 1 July 2025.
You can use this rates calculator to work out the effect of the proposed price hikes and new charges for your property: https://web1.capetown.gov.za/web1/rtcalc/
N.B. N.B. A public meeting to present the proposed budget will take place on Wednesday 23 April at 18:00 at the Sub-council offices at the Alphen Centre in Constantia, (see link below).
https://drive.google.com/open?id=15FzfsKOsGU2h_CJ9zhYoNw4ztd6nBzC2&usp=drive_fs
The public participation process for objections / comments / responses closes on 2 May 2025. To find out more or to submit your comments, visit this link:
BMRA will be submitting comment as we consider that the proposed rate increases are a form of wealth tax and in our opinion, price hikes should rather be based on consumption. The price increases will also be unaffordable for many residents.
If you wish to see how the City distributes and spends its income rates and charges, use the link below.
https://drive.google.com/open?id=18VGbccTmMJsAh4ThJuGqRCJZR8tYKesJ&usp=drive_fs