'Big bang' rates shock
29 January 2008, 10:49
By Heinz de Boer
There will be no phasing in of new property rates for local residents, who should brace themselves for what could be massive increases in their bills each month.
Fears that rates could increase by up to 200 percent on some properties were again raised at Monday's executive committee meeting, where the ANC objected to proposals for a phasing in of market-related valuations.
Instead, city manager Michael Sutcliffe said the council would implement the new rates and associated costs in a "big bang" manner.
This means that once council has finalised its valuation role and "rand ratage" percentage by July, residents would be expected to start paying what could be double, or even triple what they are paying now.
There will, however, be a period for objections to the new, market-related rates roll, but residents will be expected to pay until their appeals are finalised.
While relatively newly-rated properties in predominately affluent suburbs could see moderate increases, opposition parties claim the poorest of the poor could now be rated out of their homes.
People living in former council flats that were purchased for R20 000, but are now valued at over R200 000, could faced huge financial hurdles, said DA caucus leader John Steenhuisen.
Suburbs that could be badly affected include Chatsworth, Phoenix, Umlazi and KwaMashu.
"We are not calling for a general phasing in, but for the policy to make contingency plans for anomalies, where people may be expected to pay three or four times more than they are now," Steenhuisen said.
"This would provide relief to these people that may otherwise not be able to afford the new rates."
He predicted that Durban would follow Johannesburg's example and set the rate rand-age at 25 cents to the rand.
But, unlike the city of gold, Durban has shunned DA proposals that have been implemented in other ANC-led municipalities.
"The general principle that council has used over the past ten years is the 'big bang' one," Sutcliffe said.
He however refused to comment on the DA's claims that some residents could pay up to 200 percent more for rates.
"I really feel they are trying to confuse the public. We are now dealing with the rates policy, then public comment on the valuation role, then the budget and implementation of the policy.
"There may be some properties where the rates increase from R50 to R500. Are we now going to talk about percentages? I will not allow people to subvert the agenda of the programme," Sutcliffe said.
ANC exco member Logie Naidoo has also joined the rates fray, saying market valuations would forever level the playing fields in a city that was riddled with historical inequalities.
"This rates act is about equality," he said.
heinz.deboer@inl.co.za
There will be no phasing in of new property rates for local residents, who should brace themselves for what could be massive increases in their bills each month.
Fears that rates could increase by up to 200 percent on some properties were again raised at Monday's executive committee meeting, where the ANC objected to proposals for a phasing in of market-related valuations.
Instead, city manager Michael Sutcliffe said the council would implement the new rates and associated costs in a "big bang" manner.
This means that once council has finalised its valuation role and "rand ratage" percentage by July, residents would be expected to start paying what could be double, or even triple what they are paying now.
There will, however, be a period for objections to the new, market-related rates roll, but residents will be expected to pay until their appeals are finalised.
While relatively newly-rated properties in predominately affluent suburbs could see moderate increases, opposition parties claim the poorest of the poor could now be rated out of their homes.
People living in former council flats that were purchased for R20 000, but are now valued at over R200 000, could faced huge financial hurdles, said DA caucus leader John Steenhuisen.
Suburbs that could be badly affected include Chatsworth, Phoenix, Umlazi and KwaMashu.
"We are not calling for a general phasing in, but for the policy to make contingency plans for anomalies, where people may be expected to pay three or four times more than they are now," Steenhuisen said.
"This would provide relief to these people that may otherwise not be able to afford the new rates."
He predicted that Durban would follow Johannesburg's example and set the rate rand-age at 25 cents to the rand.
But, unlike the city of gold, Durban has shunned DA proposals that have been implemented in other ANC-led municipalities.
"The general principle that council has used over the past ten years is the 'big bang' one," Sutcliffe said.
He however refused to comment on the DA's claims that some residents could pay up to 200 percent more for rates.
"I really feel they are trying to confuse the public. We are now dealing with the rates policy, then public comment on the valuation role, then the budget and implementation of the policy.
"There may be some properties where the rates increase from R50 to R500. Are we now going to talk about percentages? I will not allow people to subvert the agenda of the programme," Sutcliffe said.
ANC exco member Logie Naidoo has also joined the rates fray, saying market valuations would forever level the playing fields in a city that was riddled with historical inequalities.
"This rates act is about equality," he said.
heinz.deboer@inl.co.za
- This article was originally published on page 2 of The Daily News on January 29, 2008
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