Theuns Koekemoer of Ballito writes:
I agree with KwaDukuza municipality on a CPI-based increase in rates, but nothing more.
My top concern is the increase in the cost of living.
Increases in rates should be capped at the consumer price index (CPI).
I live in an estate comprising 60 units in Ballito with most of the owners being pensioners.
Our municipality has proposed an increase in property values for a 4 bedroom unit from R1.79m to R2.9m, an increase of 62%.
The adjustment is similar for most of the units.
I am not disputing the valuation, but the end result.
Unless the rate randage reduces, the monthly rates are estimated to increase after rebates from R1 227 to R2 059 i.e. an increase of 68%.
Speculation is that this may be reduced by 25%.
The net result is still in excess of 40% which is much higher than the CPI. It is unfair and unacceptable.
KDM spokesman Sipho Mkhize replies:
All municipalities are guided by the Municipal Property Rates Act. Rates payable is determined by the property valuation and cannot be capped.
The valuations for the complex (name is known to the municipality) has been reviewed and it is noted that the valuations for the 2021 General Valuation Roll are consistent with property sales values over the last few years.
The increase of 62% mentioned above is based on correcting the market valuation for the unit.
The previous valuation was considerably lower than market valuation and the municipality has no records on file of an objection to correct that value.
Having reviewed the calculations above, we regret to inform that the calculations are incorrect.
Rates will be increasing from R1227.98pm to approx. R1573.09pm (using the 25% General Rebate) which equates to a 28% increase.
The reason for the increase can be attributed to the lower 2015 valuation.
Market research for the complex shows that the average sales value for the period 2016-2020 was approx. R2.5m.
Had the valuation been corrected, a reduction in rates could have been expected.
Stay in the loop with The North Coast Courier on Facebook, X, Instagram & YouTube for the latest news.
Mobile users can join our WhatsApp Broadcast Service here, or if you’re on desktop, scan the QR code below.
