Cape Argus News

City weighs appeal as fixed tariff judgment sparks fallout

Theolin Tembo|Published

The City of Cape Town said that it is considering its appeal options after the Western Cape High Court ruled that certain fixed charges should not be linked to property value.

Image: File

The Good Party is seeking legal advice to compel the City of Cape Town to comply with a recent Western Cape High Court ruling that declared its fixed tariffs unlawful and inconsistent with the Constitution and national legislation.

The High Court on Thursday declared the City's fixed tariffs unlawful and invalid as they are inconsistent with the Constitution, national legislation and the City's tariff by-law.

Judge President Nolwazi Mabindla-Boqwana, as well as presiding judges Judge Andre Le Grange and Judge Katharine Savage, heard arguments by the City, SAPOA, and AfriForum over the fixed charges in the 2025/26 budget.

SAPOA and AfriForum challenged the City’s fixed tariffs and their decision to link certain fixed charges to property values.

In its main application, SAPOA asked for the three tariffs in the budget, namely the Cleaning Tariff, the Fixed Water Charge, and the Fixed Sanitation Charge, to be declared unconstitutional and invalid.

The court also ordered that those charges are to be set aside with effect from June 30.

Mayor Geordin Hill-Lewis said the implication of the ruling “might be that fixed charges go up for many families, and go down for more affluent families”.

“That is the perverse implication of this ruling, and why we will have to carefully consider how best to protect middle and lower-income families going forward,” Hill-Lewis said.

Democratic Alliance federal leader, and City of Cape Town Mayor. Geordin Hill-Lewis.

Image: Armand Hough/Independent Newspapers

The City said it will consider its options for appeal and that the court order will be suspended should it choose to appeal.

The Good Party, which was granted leave by the court to intervene in the application brought against the City, said that they noted the mayor’s remarks.

Party Secretary-General, Brett Herron, said: “While the court was clear on the unlawfulness of the City’s fixed cleaning, water, and sanitation tariffs, setting them aside prospectively from 30 June 2026, the consequence remains unresolved. A very significant amount of money was collected from residents under the unlawful regime over the past year. By not dealing with this matter, the court left a live issue of unlawful enrichment on the table that must still be addressed,” Herron said.

Herron said if the mayor were allowed to charge residents whatever he wishes, it would effectively force members of these groups to consider downgrading their accommodation.

“Hill-Lewis’s suggestion that the only alternative to his unlawful tariff model is a flat charge for everyone is false. It is a political scare tactic, not a legal or policy reality.”

Good Party Secretary-General, Brett Herron.

Image: Armand Hough/Independent Newspapers

Manager of Local Government Affairs at AfriForum, Morné Mostert, said they approached the case with a focus on the Municipal Systems Act and the Constitution.

”It’s not wrong for a municipality to try to be innovative in the tariffs. We see a lot of municipalities struggling in South Africa to fund specific services. It's not a particularly bad idea that municipalities are trying innovative practices, but it is important that it is still aligned with specific legislation.”

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