Cape Towns Property Valuation system flawed

ACDP has been saying this for 10 years now.
1. Property rates as well as charges to households for electricity, water, refuse removal and sanitation have risen every year for the last 10 years in a row by far more than CPIX. On average, electricity has gone up by over 400%, water and rates by 150% and so it goes on.
2. The general valuations process is surely deeply flawed when municipal house values rise higher than the market value rises, when municipal house values (thus rates accounts) for two identical houses next to each other differ substantially because the one has a nicer garden and paint job.

These two in combination are causing CT to become an unaffordable city to live in because home owners need to recoup the massive rates increases by increasing their rentals, while others can no longer afford to live in their own homes so their arrears escalates, etc.

These two are caused by the DA City govenment BY DESIGN.

Why – to fund their unquenchable thirst for increased revenue that funds their growing Opex and Capex budgets required to fund all these fancy projects that impress the voters (ticking the “City delivers” box), example being that the ratepayers PAY R38 per MyCiti trip per commutter through the City’s subsidies on the service – instead of cutting expenditure, running a modest administration and leaving income in ratepayers pockets.

When ratepayers can’t pay say R2000 monthly rates for an ordinary middle class house and end up in arrears, every 2 or 3 years the City writes off R1 billion or so of rate payers debt – and that further impresses the ratepayers because it ticks the “The City cares” box.

On 03 August, 66% ratepayers rewarded the DA with another 5 year term giving them permission to continue with this style of governance.

Cape Town is a very expensive city to live in and it’s not going to improve for another 5 years – in fact it will become more expensive.

Article here

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