Have your say regarding the Draft Rates Policy

The Draft Rates Policy for the Msunduzi Municipality has been formulated in terms of the Municipal Property Rates Act (2004).

This policy may be viewed, during office hours, from 1 December 2007 to 31 December 2007 at the following Municipal offices:

Reception Counter, City Hall;1^st Floor, Compen Building, Information Centre, Church Street;   8^th Floor, Professor Nyembezi Centre, 341 Church Street;  Banking Hall, A S Chetty Centre, 333 Church Street;  Northdale – Civic Centre, Bombay Road; Ashburton Municipal Office; Electricity House, Havelock Road; Gedi Offices, Imbali; Edendale East Office, Willowfountain Road; Edendale Depot, Old Edendale Road;  Ashdown Municipal Offices; Sobantu Municipal Offices;  All Municipal Libraries.

It may also be viewed on the Municipal website at www.msunduzi.gov.za

Written comments and representations can be sent to the:Strategic Executive Manager : Finance ;P O Box 26; Pietermaritzburg; 3200

Organisations that may require additional briefing sessions on the draft policy can request such a meeting by sending a fax to the Strategic Executive Manager: Finance at 0333922506.  This fax number can also be used to submit written comments.  All submissions should include full names, account number, property description, postal address and any other contact details.

The closing date for all comments and representations is 18 January 2008.

Why do we need a new Rates Policy?

A new Rates Policy is needed in terms of Part 1 of the Municipal Property Rates Act.  It is envisaged that the new valuation roll will be delivered to the Municipal Valuer by no later than 31 January 2008.

The new valuations are based on market values as apposed to the land and depreciated cost of buildings methodology used previously.  Whilst values of all properties will most certainly increase, the rate randage will be adjusted to ensure that any increase in rates payable will, as far as possible, be reasonable. 

The Municipal Property Rates Act requires that all properties are valued and that individual sectional title units are valued separately.  Each sectional title unit owner will receive a rates account from July 2008.

Certain properties will be valued for the first time and Section 21 of the Municipal Property Rates Act specifies how these new properties will be rated.  It should be noted that Section 21 of the Municipal Property Rates Act does not apply to sectional title units as these have previously paid rates through their Body Corporate. 

There are also a range of rebates that Council is considering and these details are set out in the Draft Rates Policy.  The finalisation of the content of the Rates Policy will only be done after due consideration of all inputs received during the public participation process.

The final Rates Policy for 2008/2009 will be tabled for approval at a Council meeting scheduled for January/February 2008.

The new Rates Policy, once approved by Council, will be implemented on 1 July 2008.

Some key principles

The Municipal Property Rates Act contains several basic principles that have been taken into account by the Municipality when developing the Draft Rates Policy.  These principles should be considered when formulating your submission:

·           Equity – ensuring that the system is fair and reasonable;

·           Affordability – ensuring that rates and tariffs are affordable;

·           Poverty alleviation – making sure that the very poor are assisted;

·           Social and economic development - encouraging a better quality of life for residents and promoting growth and investment in the City;

·           Financial sustainability – ensuring the long term viability of the City;

·           Cost efficiency – developing a system that is cost-efficient to administer.

MUNICIPAL  MANAGER

R F HASWELL (JP)