CAPE TOWNS “RATES INCOME FOREGONE” REPORT FOR 2013/14

BACKGROUND:

The Local Government Property Rates Act (6 of 2004) requires such an annual report, relating to rates income foregone through exemptions, rebates and reductions granted by the municipality to its ratepayers

The ACDP supports this decision and has done so since it was part of the co-government of the City between 2006 – 2009.

But the ACDP has 3 concerns / questions:

  1. After all 680,000 households received residential value reductions of R200,000 each, why are so few indigent households (only 3695 – pg 14) approved to benefit through the Indigent policy?

And why do they only benefit to the amount of R1,000 each per annum when for many more, their arrears is far more than R1,000?

Surely the Indigent Policy needs an assessment on why so few households are applying or are approved for beneficiation through this decision today.

  1. Why raise the rates levied to ratepayers at the beginning of each FY, through exorbitant rates increases, knowing that these are unaffordable – and then forego the income at the end of the FY? Why not anticipate such income foregone and not raise the rates levied to ratepayers to that level at the beginning of the year?

This whole exercise is surely nothing more than a trumpet-blowing exercise by a self-named caring government.

  1. Why is the report itself so thin of vital information?

If we are to take informed decisions on such important matters like this, the report should at least provide a history of this item over the last 3 years and make projections as to what council is likely to face next FY and the MT

The ACDP asks that this information be included in future reports.

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