Cape Town Mayor Geordin Hill-Lewis has publicly criticized the South African Property Owners Association (SAPOA) for opposing the city’s new municipal tariff structure, arguing that the association is prioritizing profits over fairness.
This follows SAPOA’s High Court application to review and potentially overturn three fixed municipal charges introduced under the city’s 2025/26 “Invested in Hope” budget. These charges—covering water, sanitation, and cleaning—are now linked to property value, rather than consumption or infrastructure size.
“They now argue that the city should charge the biggest property owners the same as individual low-income families,” Hill-Lewis said. “The city simply cannot agree. That would be regressive, place a disproportionate burden on ordinary families, and be patently unfair.”
⚖️ Equity vs. Profit: The Heart of the Debate
Hill-Lewis defended the new tariff model as a more equitable system, ensuring that wealthier households and businesses contribute proportionally to the city’s infrastructure costs. He emphasized that the previous “pipe levy” model—based on water pipe size—was outdated and unfair, requiring vastly different properties to pay the same fixed charges.
SAPOA, which represents many of South Africa’s largest commercial property owners, argues that the new charges resemble property rates and violate the Property Rates Act. The association claims the model could force vulnerable homeowners to sell due to unaffordable municipal bills.
🏙️ Infrastructure Investment and Social Responsibility
The mayor highlighted that the city’s budget protects homes valued under R2.5 million and expands rates relief for middle-income households. He also noted that SAPOA failed to propose a viable alternative to the fixed charge model, despite acknowledging the need for Cape Town’s R40 billion infrastructure investment over the next three years.
“Cross-subsidising, where the better off among us help to fund services for the less fortunate, is the only sustainable way to ensure a working city of hope for all,” Hill-Lewis added.