The South African Property Owners’ Association (Sapoa) has welcomed the City of Cape Town’s decision not to appeal the Western Cape High Court’s ruling of 30 April, while confirming it will now move to recover the legal costs it incurred in bringing the landmark case.

In a notice to members issued on 22 May, Sapoa chief executive Neil Gopal said the organisation was pleased the City had chosen to abide by the court’s decision rather than pursue further legal action.

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“We are glad to see that the City has decided to abide by the Court’s decision, and that it has decided not to waste further taxpayer’s funds in pursuing fruitless appeals,” Gopal said.

The case was brought by Sapoa to challenge the City’s tariff structures linked to property values. With the City now accepting the ruling, SAPOA confirmed it would scrutinise the new draft budget the City has undertaken to publish for public comment on 27 May.

“We will carefully study the new draft budget and will submit comment where necessary,” Gopal said.

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Other municipalities cautioned

Sapoa also used the notice to claim a measure of vindication on one of its long-held positions — that city-wide cleaning costs should be funded through property rates rather than as a separate tariff.

The City’s proposed amendments appear to reflect precisely that approach. “As Sapoa has stated all along during its engagement with the City, city-wide cleaning ought to be funded from property rates, and Sapoa is satisfied that the City now seems to be in agreement,” Gopal said.

The association also took the opportunity to urge other municipalities across the country, to avoid introducing tariffs linked to property values in light of the court’s findings.

Sapoa revealed it is currently engaged in exactly such a dispute with Mangaung Municipality, and expressed hope that the outcome in Cape Town would serve as a cautionary signal.

“Sapoa is currently engaging the Mangaung Municipality on precisely this issue, and we sincerely hope that Mangaung will pay heed to these calls,” Gopal said.

With the legal battle concluded, Sapoa confirmed it is now proceeding to recover its litigation costs from the City of Cape Town.