Cape Town - The City of Cape Town’s municipal valuations have come under fire from ratepayers and lobby groups who have accused it of pushing up their property valuations to extract more rates from them.
This after a Muizenberg pensioner, who objected to the City increasing the municipal valuation of his flat from R2.2 million to R3.2m, was successful in his challenge after the City cut his valuation by more than R1m.
David Liebrecht, 69, has been worried that as a pensioner he would not be able to afford the new rates.
In March, Liebrecht sent a lengthy objection letter to the City as well as a market-related assessment from a reputable estate agent valuing his flat at between R1.8m and R1.9m as opposed to the City’s R3.2m.
By the end of June, he did not hear back from the City so he contacted the Cape Argus to share his plight.
He said although his flat was in Muizenberg, he was on the first floor and had “no view of the sea, a railway line on one side and noisy False Bay College on the other”.
He said he found the flats above his had more space and better positioning for views and less noise seemed to be paying lower rates and he questioned the fairness of the situation. In the face of all the evidence Liebrecht came up with, the City backed down.
City spokesperson Luthando Tyhalibongo admitted the valuation was incorrect.
Tyhalibongo said: “His objection application has been considered and his valuation will be lowered to close to what he was expecting. The formal notification will be sent within the next month.”
He said the property valuation change was implemented with effect from July 1 and following the successful objection, no rates would need to be paid on the incorrect valuation.
“Any property owners that have not yet had their objection submission dealt with should pay the minimum of their monthly rates due in June to ensure their municipal rates accounts remain up to date while the matter is resolved.”
Yesterday, Liebrecht confirmed that he called the City himself and confirmed his new valuation at R2.1m, which he felt would be more within his means.
Stop CoCT founder Sandra Dickson said: “There was a property valuation, GV2022, which was done last year, and it took effect on July 1, 2023.
“This means if your property’s value is now over a million all of a sudden you are slapped with a service fee, a fixed charge of R252 a month, which is also something that is causing a lot of unhappiness.”
Electricity tariffs Must Fall lobby group spokesperson Natasha Gertse said: “Property valuations were based on assumptions and from sales of properties around your areas. Physical checks were not carried out.”
Last month the SA Property Owners Association (Sapoa) said municipalities were charging commercial property rates that contravene Treasury guidelines, were way above inflation.
Business Report reported that municipalities had regularly increased rates by more than 10% per annum over the past few years, far more than the annual consumer price index.
Water and property rate prices have increased 140% between 2010 and 2021, almost double the rise in inflation.