“RATES CUT” WAS NEVER REAL

GOOD Statement by Sandra Dickson, GOOD City of Cape Town Councillor:

Today’s announcement by the City of Cape Town confirms what many of us have warned all along: the much-publicised 10.2% property rates reduction was never a genuine relief for residents – it was built on a flawed and unlawful tariff model that has now collapsed under court scrutiny.

The City has now openly admitted that the so-called rate reduction will have to be revised, with cleaning costs being pushed back into property rates and a new tariff restructuring process being opened for public participation.

In plain language: Cape Town residents were sold a narrative that is now unravelling.

For months, the City insisted that its budget model would protect households.

Today it admits that:

• lower- and middle-income households may face higher fixed water and sanitation charges
• the 10.2% rates reduction is being changed
• the cleaning charge was never really gone – it is simply being moved back into rates
• higher-value properties may actually pay less in some areas under the new fixed-charge structure

This raises a serious question:

Who was really benefiting from this tariff model in the first place?

The City now claims it is “protecting” residents by increasing the rates-free rebate from R450,000 to R620,000, but residents should not be fooled by headline announcements before seeing the actual numbers.

The truth is simple:

If one charge goes down but another goes up, that is not relief – that is repackaging.

The Mayor’s attempt to blame the court ruling for this situation also avoids the real issue.

The Court did not say municipalities cannot raise revenue.

The Court found that the City’s tariff design crossed a legal line by effectively embedding property-based cross-subsidisation into service charges in a way that could not stand.

That is a City-made problem – not a court-made problem.

It is also deeply concerning that residents are again being asked to comment before the City has properly shown who will pay more, who will pay less, and by how much.

Cape Town ratepayers deserve more than political messaging and the shuffling of numbers on a bill.

They deserve:

• transparency
• lawful tariffs
• honest public communication
• and a budget that does not disguise tax increases as “reform”

The real test will come on 27 May, when the actual tables are published.

Until then, today’s media release amounts to one thing- an admission that the City’s budget model has been thrown into disarray, and that residents may once again be asked to pay more under a different name.

GOOD Healthcare: GOOD supports improving access to quality healthcare for all citizens.

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