Frustrated North Coast homeowners await municipal feedback on 1 604 property valuation objections

KwaDukuza residents who objected to their new property valuations are frustrated that the municipality has billed them at the higher rates.

Four months after the new general valuation roll (GVR) was issued and many residents lodged objections, they have not heard back from KDM and are unsure whether they have to pay the higher tariffs.

The GVR released by KDM on March 5 saw many business and homeowners facing a steep increase in rates for the next four years.

“The rates for our home in Ballito have almost doubled as a result of this new valuation. I handed my objection in on April 9, but have yet to get a response,” said Ballito resident, Jenny Crisp.

KDM has indicated that residents who lodged objections can make arrangements to continue at the lower rate until a decision is made.

“Council is not unsympathetic should a ratepayer wish to pay a lower amount due until the objection outcome is finalised. Appropriate arrangements must be made at our credit control department in this regard,” said KDM spokesperson, Sipho Mkhize.

Ratepayers do so at their own risk however, and will be liable for the increased rates together with interest charges if their objection is not successful.

But if an objection is successful, ratepayers can ask for a refund of the excess rates paid, or they can elect to use the refund to offset rates billing in subsequent months, he said.

Mkhize also confirmed that unlike the relief measures offered by eThekwini Metro for residents and businesses affected by July’s unrest, KDM would not be offering the same.

“eThekwini metropolitan municipality is the only one in the province to have done this – given their resource base,” he said.

KDM did however announce a debt relief scheme last week granting an amnesty period for service and connection charge debtors.

KDM CFO, Shamir Rajcoomar told Council last week that they had received 1 604 objections and were trying to deal with them as fast as possible, July’s unrest as well as key members of the valuation staff contracting Covid-19 had delayed the process.

“As matters stand right now, objections are being dealt with in clusters. Those who have objected will be informed individually of the results,” he said.

Mkhize said the first batch of 500 finalised objections will reflect on September statements. Residents are also allowed to object to the outcome of the initial objection.

“Should ratepayers not be satisfied with the outcome of the objection, their attention is drawn to Section 53 of the Municipal Property Rates Act which allows an objector 30 days from the date of the objection outcomes notice to apply in writing to the municipal manager to furnish reasons for the decision of the municipal valuer. The appeals form and prescribed fee can be requested from the rates department.”

Following an outcry from a number of their constituents, some ward councillors raised questions about the validity of the valuations.

“How authentic is this valuation roll? Is it not one of the requirements that a physical inspection has to be done to these properties?” asked Ward 23 councillor, John Phahla.

Rajcoomar said properties are valued through a combination of deeds office reports, diagram maps, GIS mapping, sales data, building plans and, in some cases, physical inspections.

“We have to recognise that in a project of this nature, there will be gaps. The GVR process is safeguarded by the fact that it is public and anyone can object to the valuations.”

What determined the valuation was the earning potential of the property, not the construction cost of a building on it.

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