property valuation rolls & revenue

Institute of Municipal Finance Officers

Property Valuation Rolls & Revenue

• Correctness of Valuation Rolls - Credibility

• Accurate tariffs – Prudent Monthly Accounts

• Sections 28 & 29 of the MPRA – Collections

• Sharing knowledge and experiences via IMFO


Correctness of Valuation Rolls (1)

• A Roll is like a monthly meter reading schedule

• Fundamental to fair and equitable rates accounts

• Determines the spreading of the rates burden

• Impacts on the ability to pay and cash flow

• Impacts on the credibility of the total budget

• Values must be market related on valuation date

• Accurate values engenders confidence in the roll

• Obviates excessive valuation objections



• Compare properties to Deeds Office data

• Compare new roll with current billing and roll

• Review all vacant erven against services billed

• Review all the billings to a property re usage

• Verify all changes in categories old vs. new roll

• Verify if rebates / exemptions should still apply

• Compare the new value to previous roll’s value

• Review “uitskieters” in the areas



• SV when improvements or use changes

• Building completion – trigger SV

• Different use approved – trigger SV

• SV performed as soon as possible

• Site inspections to detect new uses

• Illegal use, rectify/legalize, tariff

• Objections to a GV or SV - resolve ASAP


Accurate Tariffs (1)

• Combine municipal billings per property• Test affordability of Total Municipal Account• Can budget payment ratio be maintained• MTREF revenue increases show future spikes• Review activities to flatten spikes• Tariff setting is future looking• Rates levied impacts on the Roll’s credibility• Tariff setting impacts on the financial viability• Financial viability impacts private investments


Accurate Tariffs (2)

• Tariffs require policies and By-laws• Legislation / draft legislation affects policies• Impacts of legislation must be analyzed• Financial impacts must be quantified• Serious impacts - elevate to IMFO Forums• IMFO forums achieved great successes• Land Valuation Bill• MPRA Bill 2010

• Remaining risks being addressed• Become part of the solution


Collecting rates in arrears

• MPRA Sections 28 & 29 - tenants, occupiers & agents - Rates

• The Systems Act Section 104(1)(f)(iii) – Municipal Account

• Minister may make regulations or issue guidelines

• Interrupt municipal services, seize property, attachment rent

• Must be included in the debt collection policy & By-law

• Arrear accounts must attract restrictions or disconnections

• When reconnecting get the tenant to pay the rental to Council

• Tenant must discuss this with the owner


Systems Act Section 102(1)

• The Municipality may:

• Consolidate municipal accounts of a person

• Credit payment against any account of the person

• Take any actions provided for in Chapter 9

• Include Section 104 irrespective of regulations


MPRA & Systems Act

• MPRA - May recover rates via rent

• Systems Act – May consolidate accounts

• These two are not subject to regulations

• Credit Control and Debt Management Policy

• By-Law to enact the policy


Non Compliance with MPRA

• Refusal by tenants, occupiers & agents

• Seek other properties of the owner

• Take actions against property where he lives

• Take actions against the property in arrears

• Payment of the arrears or agreement re rental

• No deal - No services & attach all properties


Improve Revenue Management

• Register to be an IMFO Member today– Get yourself heard

– Provide input on IMFO Training Programmes

– Be part of the largest network of Municipal Finance Officials in Southern Africa

Questions

www.imfo.co.zaInstitute of Municipal Finance Officers

http://www.imfo.co.za/

property valuation rolls & revenue

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