In a city known for its inequality, a major shift in how municipal service charges are calculated is stirring up both praise and controversy.
Cape Town Mayor Geordin Hill-Lewis is standing firmly behind a new policy that links fixed service fees—like water and electricity infrastructure—to property values instead of charging everyone a flat rate.
And not everyone is happy about it.
Wealthy Property Owners Take the City to Court
The South African Property Owners Association (SAPOA), which represents some of the country’s richest commercial real estate players, has launched a legal challenge against the new system.
They’re arguing in the High Court that the model, part of the City’s 2025/26 “Invested in Hope” budget, is unfair and legally questionable.
SAPOA’s main issue? They say tying fees to property value will put unnecessary financial strain on big investors and commercial property holders.
Mayor Says the Rich Should Contribute More
Mayor Hill-Lewis isn’t buying it. He’s calling SAPOA’s opposition a clear attempt by major property owners to dodge their civic responsibilities.
“They’re basically arguing that massive property portfolios should be treated the same as modest households.
That’s not just unfair—it’s backwards,” the mayor said.
He emphasized that the reform is about protecting lower-income households, especially those living in homes valued under R2.5 million, while asking wealthier residents to contribute a more reasonable share to maintain the city’s infrastructure.
Out with the Old, In with the Fair
The city recently dropped its outdated “pipe levy” system, which charged people based on the size of their water connection—regardless of whether they lived in a modest home or a mansion.
That model meant luxury properties and small homes paid identical fixed fees, which Hill-Lewis called both outdated and regressive.
The new policy aims to correct that imbalance.
“If someone owns a high-value property, it’s fair that they pay more toward maintaining the infrastructure they still rely on,” he said.
Big Plans Need Big Investment
Cape Town has ambitious goals, including R40 billion in infrastructure investment planned over the next three years.
That includes upgrades and expansions to water, electricity, and other core services—especially in growing and underserved areas.
The mayor says this kind of development can’t happen if the wealthiest continue to be subsidized by lower-income households.
SAPOA Claims Policy Is Unlawful
SAPOA, meanwhile, insists the policy doesn’t hold up legally and is hoping to get it overturned in court.
They argue it could deter investment and put the future of commercial property development at risk.
But Hill-Lewis is sticking to his guns. He says SAPOA’s court challenge is essentially a push to bring back a system where the rich benefit off the backs of the poor.
Why Flat Fees Hurt Poorer Families More
The mayor made it clear: fixed costs exist whether someone uses a service or not.
“Even people with solar panels or boreholes rely on the City’s systems when something goes wrong,” he pointed out.
He also explained that flat fees eat up a much larger share of a poor household’s income than they do for wealthy families, making the old system fundamentally unfair.
Consultations Happened—But No Better Solution Offered
According to Hill-Lewis, the city has been in talks with SAPOA and other stakeholders throughout the budgeting process.
While SAPOA admitted the city’s infrastructure needs are real, they reportedly failed to provide a viable alternative to the current value-linked model.
City Stands Firm as Court Date Approaches
Despite the legal pressure, the City of Cape Town believes its policy is both legally defensible and socially just.
Hill-Lewis said they’ll continue to defend it in court and stand by the principle that those with more should give more.
“Cape Town must remain a city of hope,” he said. “And that only works if everyone contributes fairly to the systems that serve us all.”
The High Court is expected to hear the case in the coming weeks.
And the outcome? It could set a major precedent for how cities across South Africa structure their service fees moving forward.