In a landmark court case, the Western Cape High Court ruled in favour of the South African Property Owners Association and AfriForum at the end of last month. The court declared the City of Cape Town’s property value-based fixed charges for cleaning, as well as elements of its water and sanitation tariffs, unlawful.
The charges have been set aside from 30 June 2026, although they remain in place for now and may be suspended should the City proceed with an appeal. Calls are now mounting for the City to reimburse residents. Responding to questions from Impact News, STOP COCT founder and GOOD Party representative, Sandra Dickson (pictured), said the judgment should have clear financial consequences for the City. “Any unlawful collection of money so declared by the courts should lead to reimbursement by the guilty party. If the roles were reversed, the City would expect residents to pay what is owed, and therefore should do the same,” she said.
The City said it is considering whether to appeal the judgment and has raised concerns about the wider implications for municipalities nationally. Mayor Geordin Hill-Lewin says the ruling is not retrospective and that current tariffs remain valid until 30 June 2026. Hill-Lewis has also opposed calls to reduce infrastructure spending, arguing that investment in services and infrastructure is central to Cape Town’s growth and functionality. “Property-linked charges help subsidise lower-income households, and the judgment could increase costs for ordinary families while lowering them for wealthier residents,” he said. “The first choice would be that the City pay back the hard cash they took from households in cash refund,” said Dickson. Her organisation rejected alternatives such as tariff adjustments or future credits, warning that these would not provide meaningful relief to households already under financial pressure. They believe future tariff reductions would be impractical, given the City’s pattern of above-inflation increases, which would not adequately compensate residents for past payments.
According to STOP COCT, figures previously mentioned by the City suggest it could face billions in liability. While the Mayor has indicated a possible exposure of around R4.5 billion, the organisation estimates that approximately R3 billion relates specifically to the fixed charges that were struck down.
Dickson said residents repeatedly rejected both the fixed charges and the link to property values during these engagements, but the City “would not change its stance one iota”. She said her organisation made extensive but unsuccessful efforts to engage the City before the matter reached court. Groups such as SAPOA, AfriForum and the Cape Town Collective Ratepayers Association held in-person meetings with City officials. At the same time, STOP COCT remained vocal during public participation processes linked to the City’s annual budgets. Legal action ultimately became unavoidable.
STOP COCT is calling for a return to a consumption-based tariff system. The organisation argues that the principle of “you pay for what you use” is fair, as higher usage would naturally result in higher costs without relying on property-linked charges. It also called on the City to scale back what it described as overly ambitious plans and align spending with what residents can realistically afford.With the City now reviewing its tariff structure, STOP COCT is encouraging residents to become actively involved in the process. Residents are urged to contact their ward councillors and ensure their concerns are represented as decisions are made. For many households, the final outcome will determine not only future costs, but whether they will see any of the money they believe was unlawfully collected returned.
