City of Johannesburg REVIEW OF RATES POLICY , RATES BY LAW - - PowerPoint PPT Presentation

City of Johannesburg

REVIEW OF RATES POLICY , RATES BY LAW Councillor Briefing 2017/18

2 2

Table of contents

• 1. Legislative background
• 2. Rates Policy review process
• 3. Stakeholders for Rates Policy review
• 4. The context for the review of the Rates Policy

– Risks

• 5. Proposed changes in draft Rates Policy
• 6. Property categories, Ratios and Rates for 2016/2017
• 7. Rates Base used to calculate rates for 2016/2017
• 8. Venues , dates and times for meetings
• 9. Communication strategy
• 10. Questions and discussion

3

Overview the Rates Policy Legislative background

 Property rates is a tax in terms of Section 11 of the Prescription Act 68 of 1969

and the Council may recoverrates in arrear for a period of up to 30 years

 The Rates Policy guides the City in all aspects of levying rates on property

• wners as required by the Local Government Municipal Property Rates Act 6, of

2004 (MPRA)

 Property Rates are levied as a cent in the Rand based on the market value of the

property as reflectedin the valuation roll

 Council levies different rates for different categories of rateable property based

• n zoning

 Council through the Rates Policy gives reductions and rebates on certain

categoriesof properties as promulgated

 Council must review Rates Policyannually  Council

must conduct public participation

• n the draft Rates Policy in

accordancewith Chapter 4 of the Systems Act

4

Rates Policy review Processes 2017/2018

 Rates Policyreview is divided into two phases  Phase one is when the City presents the first Draft to all the stakeholders

– Stakeholders will be required to make input and submission

 All inputs and submission received from all stakeholders will be consolidated

into a final draft Rates Policy.

– Final draft Rates will be table in Council in March as part of the Budget

approval process.

 Phase two of the Rates Policy review take place in April

– This phase takes place at the same time as the public consultation for IDP

and Budget

– Property Unit reports back to stakeholders on how their inputs have assisted

in updating the policy from the submissions and comments submitted

– Property Unit will present the proposed tariffs for 2017/2018 financial year – Stakeholders will be required to make inputs and submission one last time – A report will be prepared to Mayoral Committee and Council that contains all

the inputs and submissions from different stakeholders

– During the Budget speech, Council may respond

5

Rates Policy review Processes 2017/2018

 First phase public input into the Draft Rates Policy2017/2018  First phase starts on the 21st of January and end 21th February 2017  Due date for comments, submission and inputs is 21February 2017  Second phase proposed Rates Policyand proposed Tariffs (April 2017)  Draft Rates policy is availableon : www.joburg.org.za  Written comments can be:

Emailed to : RatesComment@joburg.org.za, pumzaj@joburg.org.za, tandisizwes@joburg.org.za Fax Number : 086 447 7567

6

Stakeholders for Rates Policy review 2017/2018

 Business Forum

– Business forum represent

a majority of business formations within Johannesburg

 SAPOA

– SAPOA represent a majority of property developers

 Ratepayers Association

– Ratepayer Association ratepayers from different areas with the City of

Johannesburg

 NGO’s

– NGO’s organisation that have interests in the City

 Management Agents association

– Represent management agents within the City that managing sectional and

non-sectionalized properties

 COGTA national and provincial  National Treasury  JAA

• Representing transferring attorneys

7

Draft Rates Policy 2017/2018 The Rates Policy review process for 2017/2018 financial year is done under the followingbackground :

 City is currently on its second Valuation roll under the MPRA as amended  The Rates Policy has been reviewed annually since 2008 to take into account

legislativechanges and City policy direction and public input

 The review was also done enhance policy while ensuring that the required

revenue is realized.

 The review of the Rates Policy considers the pro-poor policy of the City  it is important to ensure that there is alignment between the Rates policy and

• ther policies as well as the strategic direction adopted by the City

 Tariff Policy provides that Council rates should be affordable, competitive and

promote economicdevelopment.

 Civic education on the Rates policy, Rates By-law and its impact  Civic education on the impact of the amended Municipal Property Rates act  Implementation of the Mayoral ten point plan strategic directionfor the City.

8

Draft Rates Policy 2017/2018 Risks that could impact rates revenue

 Credit rating of the Country is not looking good  Economicgrowth of the Country has slowed down  CPI target set by the Reserve Bank  Country experiencing sever drought  City credit rating is sitting at (AA-.zaf/F1+.zaf stable)  Electricityincrease  Basket of household goods have increased  Reduction in disposable income  More property owner depending on social grants  Business requesting more relief  Determination of ratios by CoGTA with immediate implementation  Reduction of Grants  Reduction of Business ratio to 1:2

9

Draft Rates Policy 2017/2018 Proposed change in the draft Rates Policyfor 2017/2018

 Aligning the structure of the Rates Policy to

CoGTA Gauteng requirement

 Rewording the sections of the Rates Policyto read correctly.  Replacing outdated legislationwith current legislation  Aligning the Rates Policywith other City Policies  Adding new definitions in line with Property Rates amendment act  Alignment of categories of properties and categories of ownership to

removethe confusion that currently exists

 Amending the requirements for sectional title properties to qualify

for the appropriate rebates.

10 10

Categories , Ratios and Rates



No Category Ratio Rates for 2016/17 (Cents in the Rand) 1 Agricultural Residential 1:0.9

0.006225

2 Agricultural Business 1:2.6

0.017982

3 Agricultural other 1:0.9

0.006225

4 Residential 1:1

0.006916

5 Consent use 1:1.2

0.013833

6 Business and Commercial 1:2.6

0.017982

7 Sectional title business 1:2.6

0.017982

8 Sectional title residential 1:1

0.006916

9 Sectional title other 1;1

0.006916

10 Municipal property 11 Farming 1:0.25

0.001729

12 Mining land 1;2.6

0.017982

13 Vacant land 1:’4

0.027665

14 PSI 1;0.25

0.001729

15 PSI privately owned 1:0.25

0.001729

16 Private open spaces 1;0.25

0.001729

17 State 1:1.5

0.010374

18 Public benefit 1:0.25

0.001729

19 Education 1:0.25

0.001729

20 Religious 21 Multipurpose Residential 1:1

0.0069161

22 Multipurpose Business 1;2.6

0.018674

1 Penalty tariff : Illegal use 1:4

0.027665

11 11

Categories , Ratios and Rates



Category Normal/ AD2 / RESI Nr Properties Gross Value AD2 32 R 0 NORMAL 4,166 R 0 Agricultural Business AD2 11 R 112 130 000 Agricultural Business NORMAL 271 R 2 253 622 000 Agricultural Other AD2 45 R 68 320 000 Agricultural Other NORMAL 467 R 1 045 289 000 Agricultural Residential AD2 96 R 387 280 000 Agricultural Residential NORMAL 5,966 R 17 398 167 000 Business & Commercial AD2 1,618 R 9 717 846 000 Business & Commercial NORMAL 26,871 R 215 733 551 000 Business & Commercial RESI 477 R 4 328 781 000 Consent Use NORMAL 32 R 96 602 000 Education AD2 33 R 133 810 000 Education NORMAL 917 R 10 402 925 000 Farming NORMAL 17 R 38 110 000 Mining AD2 3 R 0 Mining NORMAL 71 R 537 631 000 Multiple Purpose NORMAL 79 R 426 057 000 Multiple Purpose RESI 5 R 109 540 000 Municipal AD2 5,896 R 8 900 575 770 Municipal NORMAL 365 R 587 638 000 Private Open Space AD2 150 R 129 412 000 Private Open Space NORMAL 739 R 942 420 000 Public Benefit Organisations NORMAL 2 R 29 000 000 Public Service Infrastructure AD2 3,052 R 1 577 700 000 Public Service Infrastructure NORMAL 6,474 R 5 815 901 000 Public Service Infrastructure Private AD2 123 R 24 889 000 Public Service Infrastructure Private NORMAL 1,184 R 181 331 000 Religious AD2 37 R 41 170 000 Religious NORMAL 1,320 R 347 5813 000

12 12

Categories , Ratios and Rates



Category Normal/ AD2 / RESI Nr Properties Gross Value Residential AD2 8,034 R 3 351 154 000 Residential NORMAL 521,405 R 440 129 734 800 Sectional Title Business AD2 29 R 33 180 000 Sectional Title Business NORMAL 8,696 R 17 554 345 592 Sectional Title Business RESI 5,486 R 3 751 031 000 Sectional Title Other NORMAL 8,303 R 792 953 200 Sectional Title Residential AD2 1,162 R 493 733 000 Sectional Title Residential NORMAL 191,520 R 134 362 205 032 State AD2 422 R 1 678 482 000 State NORMAL 977 R 15 697 787 000 Vacant Land AD2 6,178 R 2 834 326 000 Vacant Land NORMAL 35,329 R 23 595 306 530 Total 848,060 R 928 769 748 925

13

Dates and Venues

Venue Region Date Time Orlando East Community Hall Orlando East Soweto D 21/01/17 14:00-16:00 Dhlamini Hall Koma Road Soweto D 21/01/17 10:00-12:00 Protea Glen Library Milkhood Street Ext 2 Soweto D 28/01/17 10:00-12:00 Hilbrow Recreational Centre Corner Clarendon King George and Pretoria Street Hillbrow F 23/01/17 18:00-20:00 Mondeor Recreation Centre Corner Dayleford Road and Columbine Avenue Mondeor F 24/01/17 19:00-21:00 Eureka House 92 Marborough Road Springfield F 25/01/17 18:00-20:00 Ennerdale Civic Centre Corner Katz and Smith Street Ennerdale, Ext 9 G 26/01/17 18:00-20:00 Eldorado Don Matteman Civic centre L4046 Link Road Eldarado, Ext 5 G 30/01/17 18:00-20:00 Lenasia Civic Centre No 1 Rose Avenue Lenasia Extension 1 G 31/01/17 18:00-20:00 Orange Farm Multi-pupose Hall 15825 Link Road Orange farm, Ext 4 G 01/02/2017 18:00-20:00

14

Dates and Venues

Venue Region Date Time Ivory Park North Hall, Ivory Park A 26/01/17 18:00-20:00 Midrand Fire Station Cnr First and Smuts Street Midrand A 06/02/17 18:00-20:00 Diepsloot Youth Hall Ingonyama drive Diepsloot A 25/01/17 18:00-20:00 Marks Park, Pavilion Hall Judith Road Emmarentia B 02/02/17 18:00-20:00 Danie Van Zyl Recreational Centre Rex & Plantation Street Montclaire B 11/02/17 10:00-12:00 Jabula Recreation Centre Cnr Anne Street& Athlone Avenue Sandringham E 07/02/17 18:00-20:00 East Bank Hall Cnr Springbok and Impala Street Alexandra E 04/02/17 10:00-12:00 Ernest Ullman Park Recreation Centre 1 Alna Street Gallor Manor Sandton E 08/02/17 18:00-20:00 Cosmo City MPCC Angola Drive Cosmo City C 09/02/17 18:00-20:00 Roodepoort City Hall Corner Dieperink & Berlandina Street Roodepoort C 13/02/17 18:00-20:00 Braamfischerville MPCC Loerieblaar Ave Braamfischerville C 28/01/17 18:00-20:00

15

COMMUNICATION STRATEGY

Internal StakeholderRelations:

 Councillor’s briefing  MayoralCommittee  Sub-Mayoral Committee  Section 79 Committee briefing to be done  Newsroom – presentation to be done to all City communicators  All COJ staff (including MEs)

– COJ message – Group Finance message

 Letter to Head of CRUMinforming of public meetings in regions  Letters to MDs for JWater, City Power and Pikitup as well as relevant

departments, like Planning, Valuations, LIS etc. to request representation at meetings.

16

STAKEHOLDER RELATIONS

External: Presentations to be done to the following external stakeholders:

• Business Forum
• JAA (Conveyancing attorneys, Johannesburg Attorneys

Association)

• SAPOA
• NAMA
• Key and VIP account holders (including Government, i.e.

education, human settlement, etc.)

• SMS campaign to all customers – sms will go out per region

17

COMMUNICATIONS – MEDIA & PR

External:

• Press releases – to be issued
• Series of follow up articles will be done (regionally) – will include

issues addressed last year

• Letter to each editor of Caxtons informing and inviting them to

meetings

• Interviews to be arranged with various radio stations ahead of

public meetings

• Social media (Facebook and twitter messages)
• IVR message
• Statement message
• Website (all information to be placed on website)

18

COMMUNICATIONS

Customer newsletter Jozinet (to be inserted in all customer’s

statements)

Internal GroupFin Newsletter – to be emailed to all staff Posters to be put up in all Customer ServiceCentres Pamphlets to be placed in all Customer ServiceCenters Newspaper ads in all Caxton (regional) and daily newspapers Billboardadvertisingto start week of 16-20 January 2017 Rates Policy Booklet – to be handed out at meetings Electronic media pack (to be emailed to journalists) Public meeting dates schedule (1st round) placed on website MMS campaign (3-4 days to be send before meetings starts)

19 19