The calculation of the rate-in-the-rand, which determines the rates a property owner will be paying from 1 July 2019, will be published with the 2019/20 tabled budget. It will go for public comment after the Council meeting at the end of March 2019, together with the Rates Policy, which sets out the 10 rating categories.

The revenue requirement for the 2019/20 budget is the main consideration when deciding on the rate-in-the-rand.

‘The City will determine how much money it requires to provide the optimum range of services to its residents, as well as the likely provision that needs to be made for rebates and indigent support. The City does not raise more money than is required to provide necessary services such as fire services, clinics, traffic services, libraries, cleaning and parks. There is no profit on municipal rates.

‘Given the average market-related increase of residential properties in Cape Town of 34% in the three years between the GV2015 and GV2018, a significantly lower rate-in-the-rand can be expected than the current rate,’ said the City’s Mayoral Committee Member for Finance, Alderman Ian Neilson.

The rating categories in the proposed Rates Policy, which are in line with national regulations, are:

• residential properties
• business and commercial properties
• industrial properties
• agricultural properties (any agricultural property not used for bona fide farming does not fall within this category)
• mining properties
• properties owned by an organ of state that are used for public service purposes
• public service infrastructure properties (PSI)
• properties owned by public benefit organisations (PBOs) and used for specified public benefit activities
• properties used for multiple purposes
• vacant land

An indication of the rates payable for each category will be available on the City’s website in April 2019, following the determination of the new rate-in-the-rand by Council, based on the City’s budget requirements for the 2019/20 financial year.

How to inspect the GV2018 Roll

Electronically until 30 April 2019:

• Visit the City’s website www.capetown.gov.za/generalvaluations
• Online objections should please be submitted electronically via the City’s e-services portal until 30 April 2019. Please visit https://eservices.capetown.gov.za/irj/portal
  
• Property owners are able to register for e-services to submit their objections online. This is the preferred option, as it is captured instantly on the City’s system.
• Alternatively, objectors can also download a pre-populated objection form and return it by email, including properly motivated corrections, until 30 April 2019. Please submit objections to valuationsobjections@capetown.gov.za

How to activate the municipal accounts feature on e-Services:

• Log on to e-services
• Submit a certified copy of your ID in order to activate the municipal accounts option
• Once you have applied to activate this service, the City will take a few days to verify your information before granting access

In person until 29 March 2019:

To accommodate a wide spread of communities, inspection venues will be available as follows:

• Four main venues are open for the full comment period on weekdays until 29 March 2019. The Cape Town Civic Centre venue is also open on Saturdays from 09:00 to12:00
• Roving venues are operational for shorter periods (3 to 5 days) on weekdays until 29 March 2019
• More information about the public inspection and objection venues can be obtained from the City’s website at www.capetown.gov.za/generalvaluations; or, for general queries (not objections), property owners may send an enquiry to valuations@capetown.gov.za

If objecting

• When submitting an objection, it is important to provide a motivation as to why it is believed that the valuation is incorrect. It is advisable to use sales of comparable properties sold on or around the date of valuation (2 July 2018) as motivation for an amended valuation
• A comparison with neighbouring properties on the valuation roll does not suffice as a motivation for an objection
• Please note that no late objections will be considered

How property valuations are done
The City chooses to conduct a general valuation every three years, instead of the legislatively mandated four-year period, in order to mitigate against large fluctuations in property values between general valuations.

The City Valuer makes use of a computer modelling programme called Computer-Assisted Mass Appraisal (CAMA) which uses sales data, aerial imagery and other property information (for example the property’s location, size, number of rooms, outbuildings, general quality and view) to determine the market value of a property.

The results are then reviewed by professional property valuers and adjusted if necessary. There is no involvement by councillors in the determination of property values, nor may they be involved in dealing with any objection to a valuation.

The City’s Valuation Office takes pride in being the leader in South Africa in respect of its valuation processes and implements several precautions to ensure that the valuations produced are accurate and market-related, including undergoing an independent external audit.

Please watch this video for more information on the GV2018 process: https://youtu.be/zk2DEZY4U-o

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