The City of Cape Town recently tabled its draft budget for the 2016/2017 financial year.
This year, due to the latest general valuation for 2015, the proposed cent-in-the-rand on which the proposed rates increases are calculated has also been tabled.
The City is proposing the cent-in-the-rand reduces by 7 percent for residential properties from 0.6879 c/R (2015/16) to 0.6397 c/R (2016/17). This is largely due to the total value of the latest general valuation that has gone up significantly.
“Although there is still a valuation objection process under way and the final value could be somewhat lower, on the residential side we have essentially seen a growth of approximately 18 percent since the last valuation in 2012,” the City said in a statement. “In addition, the City’s latest general valuation shows the total valuation of all rateable properties has increased from R911 billion in 2012 to R1 156 billion in 2015, which is an important reason for the decrease in the rate-in-the-rand or the rates portion of a municipal bill.
“The total value of all properties within the municipal boundary, according to the valuation roll, is then used to calculate what portion of a cent out of the rand value of the property is needed to achieve the set budget needed from rates income. If the value of properties increases, the cent tariff will decrease,” said deputy mayor, Ian Neilson.
The percentage increase (or decrease) on the value of a particular property or properties did therefore not necessarily equate to the percentage increase/ decrease in future rates payments, he said.
The objection process for the latest general valuation is still under way and if a property owner disputes the valuation of their property, a well-motivated objection may be submitted by no later than Friday April 29 to the City Valuer.
In this objection, the property owner must show why the market valuation is incorrect.
* Visit www.capetown.gov.za/ propertyvaluations