The City of Cape Town’s 2009 General Valuation Roll (GV2009) was certified by the City Manager on 29 January 2010, and is now open to public inspection and objection at 18 public inspection venues. This new valuation roll will be used as a basis for property rates from July 2010.

A general valuation is conducted at least once every four years to ensure that the rates charged on residential and non-residential (agricultural and public service infrastructure) properties are fair and up-to-date. It is necessary to redo valuations because property values change within neighbourhoods and in relation to other neighbourhoods over time. This revaluation will establish a fair and equitable rates base for the next three to four years.

The public inspection and objection period begins on 22 February 2010 and closes 30 April 2010. Absolutely no late objections will be accepted after the 30 April 2010.

The General Valuation includes all the properties in the Cape Metropole area – about 780 000 in all. This includes residential, commercial, agricultural and public infrastructure properties.

As in the two previous general valuations, the City has adopted a mass valuation methodology that is in line with accepted mass valuation practices. This method is a systematic process of valuing many properties at a given date using statistical procedures based on property sales and market conditions around the date of valuation (1 July 2009). A physical inspection of each individual property is not compulsory.

Property owners will only know what the rates will be when the ‘cent in the rand’ is announced in June 2010. This will determine the amounts to be paid in rates. The City is working round the clock to have an indicative rate in the rand by the end of February 2010. This will only be an indication of the rates as the City is required by law to follow a budgeting process by with the rate in the rand is determined.

‘Our aim is to come with a valuation roll that is acceptable to all residents and property owners, because the values are fair and equitable and reflect market conditions as at the date of valuation (1 July 2009),’ says Christopher Gavor, Director of the City’s Valuation Office.

In addition, statistical control measures will be used to make sure the results conform to international standards for mass appraisals, and valuers will analyse whether the values generated reflect market conditions as at the date of valuation.

An internationally recognised independent body will also audit the City’s compliance with international best practice and the law.

Rates constitute about 24% of the City’s income and pay for services including building and maintaining roads, parks, running clinics and libraries and fire, rescue and traffic services. By law, a general valuation must be finished five months before rates are levied on it.

‘I truly believe we have done all we can, given the huge challenges, to ensure a fair, uniform and transparent general valuation,’ Gavor said. ‘We have put in the hard slog, we have tested our systems, and we are confident that the end result will be received with due regard for the fairness of the process.’