DA urges City of Joburg's finance boss Dada Morero to review rate increases

Buyers must take into account interest rate increases and other cost inflations when deciding how much to spend on a property in the current market. Picture: Supplied.

Buyers must take into account interest rate increases and other cost inflations when deciding how much to spend on a property in the current market. Picture: Supplied.

Published Aug 1, 2023

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Johannesburg - The DA in Johannesburg has called on the MMC of Finance, Dada Morero, to urgently review the implementation of the increased rates resulting from a revaluation of properties by the city.

DA caucus leader Belinda Kayser-Encheozonjoku, said councillors were inundated with calls from panicked residents regarding confusion brought on by the General Valuation Roll increases.

She said the increases had resulted in higher rates and tariffs, as well as changes to pensioner rebates, that were still open for submission.

“We note the notice that went out on 31 July 2023 wherein the city advises residents that the objection period to the changes has reopened, however as per usual the city is mum on the outcome of the objections that have already been submitted.

“Some residents have seen an increase in their property values of up to 150% above current market values. This proves to be wholly irrational, as certain properties couldn’t be sold at their true market value, and following the city’s flawed logic, the very same property would now be worth more than double its original valuation,” she said.

Kayser-Encheozonjoku said the DA was concerned with the way the revaluation exercise had been completed this year; and added that the anomalies that were popping up were evidence of either a flaw in the system, or of the complete disregard with which the city handled its duties.

“While residents grapple with serious failures in service delivery, they are expected to cough up more money for fewer services at highly inflated rates.

“We are of the view that if the implementation of rate increases isn’t drastically reviewed, the city will collapse due to a mass exodus of (residents from) high rate paying areas who are selling below market value, in an effort to leave the city in their numbers.

“Residents are struggling to pay their rates as is, and increasing them will not result in higher revenue collection,” Kayser-Encheozonjoku said.

She said to avoid a total collapse of the city’s revenue collection, the DA wanted the MMC to urgently review the way the revaluations were done, and proposed the following:

* Pause the new rate increase implementation while the valuation roll is re-opened, allowing residents to pay rates on the previous value of their property while objections & pensioner rebates assessments are being done;

* Check whether the system they use is malfunctioning, or whether it was only a desktop exercise done with revaluations and to rectify problems immediately;

* An urgent review of sewerage charges. An increase of 9.3% is advertised but residents are seeing up to a 200% increase in their sewerage charges. The rebate must apply to both residents on ESP and pensioners;

* Make section 71 reports available to Councillors as a matter of urgency.

She added: “The DA calls on the MMC to deal with billing issues and consider our proposals to avoid a collapse of the City. We will continue to fight for fairness for all our residents and to ensure that this administration cannot use a billing system as a cover for corruption at the expense of our residents.”

The Saturday Star