The South African Property Owners Association (SAPOA) remains in anticipation of a High Court judgement that could declare the City of Cape Town’s three fixed charges for water, sewage and cleaning unlawful, with the judgement now well beyond its expected delivery date.
SAPOA embarked on the high-stakes litigation against the City of Cape Town in July last year, challenging the 2025/26 budget’s fixed cleaning, water, and sewerage tariffs. Sapoa argues these charges are unconstitutional, unlawful “disguised rates” linked to property values rather than consumption.
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The case is backed by some of its most influential members that own various properties within Cape Town, including Tyger Valley, CapeGate and Canal Walk shopping centres, as well as Table Bay Mall and the V&A Waterfront. Furthermore, a number of the non-profit organisation’s members consist of smaller businesses with only a handful of properties in their portfolio.
Judgement overdue as complexity cited
SAPOA’s attorney Ben Groot this week revealed that whilst the judgement was expected by 5 March in accordance with normal judicial standards requiring delivery within three months of trial, the court has yet to hand down its decision on the matter, which is of significant public importance.
“We have no indication whatsoever of when the judgement will be delivered,” Groot told TygerBurger, expressing concern that the delay could affect public participation in Cape Town’s 2026/2027 budget process, which begins at the end of March.
“The case’s complexity has probably contributed to the delay, with Sapoa’s court papers alone comprising at least 6 000 pages, and AfriForum’s documentation totalling approximately 4 000 pages,” he said.
Afriforum brought its own case, but the matters were heard together. AfriForum’s Jurie Ferreira concurred that urgent clarity is required to enable the City to proceed with its 2026/27 budget planning.
Judge President Mabindla-Boqwana appointed a full bench to hear the matter, recognising its substantial public importance. The bench includes Judge President Mabindla-Boqwana herself, alongside Judges André le Grange and Kate Savage.
The urgency of the application was partly motivated by citizens’ need for insight to properly comment on municipal budgets, highlighting the case’s broader implications for municipal governance and public participation processes.
“Should SAPOA succeed, the immediate implications would probably see the three fixed charges based on property values set aside and declared unlawful,” said Groot, but noted that immediate implementation would depend on the court’s specific directions. He suggested it would make practical sense for charges to continue until 30th June, marking the end of the City’s financial year.
Groot indicated that an unsuccessful party may appeal the judgement, but that any appeals can only be considered once the judgement has been received.
“The urgency of the application was partly motivated by citizens’ need for insight to properly comment on municipal budgets, highlighting the case’s broader implications for municipal governance and public participation processes,” he said.
Political concern over budget timeline
Budget specialist and GOOD Party PR Councillor Sandra Dickson expressed dire concern over the delay in delivering the judgement on the case.
“This remains unresolved months after the December 2024 hearings whilst the 2026/27 City of Cape Town Budget is due out on 31st March 2026,” she toldTygerBurger.
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“The complexity, multiple parties, and the City’s constitutional threats have delayed judgement. However, ratepayers feel that the judgement should have been handed down timeously.”
Meanwhile, she said, Eskom’s disturbing trend of ramping up fixed charges, with the 8.76% tariff hike effective April 2026, spells more hardship for already overstretched ratepayers if the City prevails, layering property taxes onto already crushing bills. Preceding the court hearing, Dickson called for fair, consumption-based tariffs that reflect actual usage and are not discriminatory based on property values.
The City of Cape Town defended the case, maintaining that its fixed charges linked to property values represent a lawful and equitable approach to funding municipal infrastructure, arguing that cross-subsidisation ensures sustainability for all residents. Mayor Geordin Hill-Lewis views the policy as the only viable method to fund Cape Town’s record R40 billion infrastructure programme over three years, stating that wealthier residents helping fund services for the less fortunate creates “a working city of hope for all.”
