Sibulele Kasa|Published
De Goede Hoop homeowners in Kraaifontein are disputing a municipal water and wastewater account that has exceeded R500 000 after the City retrospectively loaded 13 002 kilolitres of consumption following the reinstatement of a bulk meter previously removed from its system.
The body corporate says estimated billing and subsequent account adjustments have placed financial pressure on homeowners. The City said the matter is being assessed by the City Ombud.
The 192-unit development’s trustees say the dispute is linked to its construction history, which included a work stoppage and restart before management was transferred to residents.
Many homeowners are first-time buyers, and the trustees are also dealing with outstanding defects, infrastructure and maintenance concerns, historical liabilities and other unresolved issues, said board chairman Reginald Cupido.
He said the municipal account had been one of the body corporate’s most challenging issues.
Account exceeds R1 million
He said when the trustees first engaged with the City in late 2024, the municipal account was approaching R1 million. The amount was subsequently reduced through payment arrangements with the City and special levies raised by the body corporate.
A further payment arrangement was entered into in March 2026 in respect of the outstanding arrears, with the expectation that the amount would be settled in early 2027.
However, the trustees subsequently raised concerns about the basis of that arrangement.
"It was not made clear to the trustees at the outset that the account position underlying the arrangement included estimated consumption.
“This was particularly concerning because the body corporate was already dealing with the separate retrospective billing issue arising from the period when the bulk meter was not operational,” Cupido said.
Subsequent adjustments and reversals caused the account position to change again, according to the trustees, with the outstanding amount once again exceeding R500 000.
Cupido said this has placed financial strain on the body corporate and, ultimately, the homeowners.
Dispute over bulk meter and retrospective billing
The development’s construction history is central to the trustees’ concerns about the municipal account.
Calgro M3, the developer, said the development started in 2016/17, with construction in most of Scottsdene halted in March 2018 following land invasions involving numerous half-built units in the area.
Construction at De Goede Hoop resumed in approximately March 2022, with the development completed in December 2023, the developer said.
According to documentation provided by Cupido, the bulk water meter was removed from the City’s system in 2020. The City subsequently confirmed that the removal was erroneous and that the meter was reinstated on August 8, 2023.
The documents stated that the developer’s municipal account was billed until February 22, 2023, with the body corporate’s account becoming active from February 23, also in 2023. The developer did not dispute this statement.
Cupido said the developer’s final bill reflected a water charge of R162.78 for nine days, but did not show a water-consumption volume or consumption-based charge. The property was also described on the bill as “vacant land”.
However, the developer said it was not able to comment on how the City described the property on its billing.
"What we can confirm is that Calgro M3 accounted for, and paid, the water and sewer consumption attributable to its construction activities during the build period, based on a detailed calculation of construction water usage," it said in response to Northern News.
Account activated before meter reinstatement
The body corporate’s account therefore became active while construction was still under way and before the bulk meter was reinstated, according to the trustees.
After the meter was reinstated in August 2023, 13 002 kilolitres of bulk consumption was retrospectively loaded for the relevant period.
The retrospective consumption has since become a key part of the dispute, including questions about how consumption should be allocated between household use, common-property use and construction-related consumption.
Cupido said the Body Corporate also commissioned an independent utilities reconciliation to better understand the consumption and potential construction-related component.
Calgro M3 said: "We confirm that the Body Corporate's municipal account became active while construction on the final phase was still under way.
"This is not unusual in a phased development where completed units are occupied while later blocks are being built, and it is precisely why Calgro M3 calculated and paid its share of consumption for the relevant construction period."
Calgro M3 further said it regarded its obligations in respect of water, sewer charges for the construction period and other related matters as settled, and had not disputed the City’s bulk meter readings.
"Following a site visit and a detailed analysis shared with the body corporate, Calgro M3 calculated its construction-related share of the water and sewer charges for the completion of Block C (September to December 2023) and paid this amount to the body corporate, and it was accepted as settled."
Matter escalated to City
Cupido said the trustees had also engaged with the developer, Calgro M3, regarding matters arising from the development’s history.
“The wider concern is that when developments stop, restart and eventually transition to resident management, unresolved matters arising from the development process can ultimately become the financial and practical responsibility of homeowners and their body corporates,” he said.
The trustees want clarity from the City on the management of the water arrangement during the stop-and-restart process, the basis for retrospective billing, the continued use of estimated consumption and the subsequent adjustments made to the account.
The City was asked about the retrospective consumption, estimated billing, removal of the meter and the activation of the body corporate’s account before the meter was reinstated.
In response, the City said that the matter was with the City’s independent office of the ombudsman for assessment.
"As it is being assessed by the City Ombud, no further information will be given as it is an active assessment, and this is one of the last ports of call once an applicant has exhausted other City departments."