LEGAL PRECEDENT IS CLEAR: MUNICIPAL BUDGET CHANGES REQUIRE PUBLIC COMMENT

2 May 2025

GOOD Statement by Anton Louw,
GOOD City of Cape Town Councillor

02 May 2025

The GOOD party calls on the City of Cape Town to extend the public participation period on the Draft Budget, which is due to close today, in line with legal precedent and the principles of transparent governance.

Substantive changes have been made to the draft budget since it was first tabled, and residents deserve a fair opportunity to review and respond to these amendments. Anything less undermines the integrity of the consultation process and violates the spirit of meaningful public engagement.

In the case of Borbet South Africa (Pty) Ltd and Others v Nelson Mandela Bay Municipality (3751/2011) [2014] ZAECPEHC 35; 2014 (5) SA 256 (ECP ), the Eastern Cape High Court made it clear:
“During this phase, where amendments to or adjustments of the proposed budget are made as a result of the consultative process or otherwise, a council is obliged to publish such amendments and again call for comment.” [Para 29]
This judgment reinforces the principle that public participation must be carried out through successive rounds of notice and comment when material changes are introduced.

Changes by the City include:
• Extending the household rebate to all properties under R7 million in value
• Raising pensioner rebate monthly income limit from R22 000 to R27 0000
• Reducing City-Wide Cleaning charges for properties from R2.5 million to R7.5 million

GOOD maintains that the so-called amendments to the City’s Draft Budget are little more than cosmetic adjustments aimed at placating public frustration. However, when residents are given the time to properly interrogate the details, it will become clear that they are still facing sharp and unjustifiable rate increases.

Based on our analysis, the proposed rates remain significantly above inflation:
• Properties valued at R1,000,000: +4.7%
• Properties valued at R1,500,000: +6.17%
• Properties valued at R3,000,000: +9.75%
• Properties valued atR5,000,000: +16.16%
• Properties valued at R7,500,000: +17.09%
*Based on 15mm water meter size, 30kl water consumption, 750kWh prepaid electricity consumption, 1 refuse bin

GOOD urges the City to uphold the principles of transparency, accountability, and public inclusion. Extend the participation period. Publish the changes clearly. Allow the people of Cape Town the time and space to be properly heard.

Media Enquiries:media@forgood.org.za