Cape Town ratepayers warned of significant municipal bill hikes in draft budget
Cape Town residents face above-inflation municipal bill increases under the City’s draft 2026/27 budget, according to ratepayer groups.
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Cape Town ratepayers could face municipal bill increases above inflation over the next three years under the City’s draft 2026/27 budget, the Cape Town Collective Ratepayers’ Association (CTCRA) warned on Tuesday.
CTCRA chairperson Bas Zuidberg said the City’s claim that “around 60% of homes will see a property rates decrease or no change” does not reflect the full impact of the budget once service charges are included.
“If one adds the effect on the other charges, water, sanitation, city-wide cleaning, then a very different conclusion must be drawn,” he said.
The City tabled its draft budget alongside new 2025 property valuations, saying measures such as a lower rates formula and a higher rates-free threshold would cushion households.
However, Zuidberg said valuation increases and tariff adjustments would “present ratepayers with increases well above inflation and are eroding the disposable income of residents”.
The group cited average freehold valuation increases of 26%, with about 69% of properties rising above 11.3%, which it said would translate into higher rates bills despite the reduced rate-in-the-rand.
“The vast majority of homeowners in high-growth areas will see their monthly rates bills rise significantly, rendering the City’s ‘relief’ claim moot,” Zuidberg said.
In its analysis, CTCRA said ratepayer revenue is projected to rise from R48.7 billion in 2025/26 to R51.5 billion in 2026/27, with further increases in outer years exceeding inflation.
It said real increases could exceed five percentage points beyond 2026/27, while the share of the City’s budget funded by ratepayers is set to rise from about 68% to over 72%.
GOOD Party councillor and Stop CoCT founder Sandra Dickson said the City’s messaging was misleading once valuation increases are taken into account.
“If your property value increases by more than about 11%, that increase outweighs the 10.2% reduction, meaning your final bill goes up, not down.”
She also claimed the City’s online calculator “creates the impression of savings” by not factoring in updated GV2025 valuations.
Responding, Mayco Member for Finance Siseko Mbandezi said proposed increases are “relatively in line with inflation”, except for electricity tariffs driven by Eskom.
He said the 10.2% reduction in the rate-in-the-rand and expanded relief measures are intended to shield households, with around 60% expected to see a decrease or no change in rates.
“Valuation increase percentage does not necessarily equate to the exact rates increase percentage,” Mbandezi said.
Mbandezi said affordability remains a key consideration in the budget and pointed to relief measures, including increased thresholds and rebates for qualifying households.
The CTCRA has encouraged residents to review the draft budget and submit comments before the public participation deadline on April 30.