By Cheri-ann James

The first phase of Buffalo City Municipality’s (BCM) general valuation process should be completed by the end of October, with almost 80%of properties already visited by data collectors.

The municipality embarked on an information-gathering process of about 170 000 properties within the municipal boundary in February this year.

This new valuation roll – compiled in terms of the Municipal Property Rates Act of 2004 – will be implemented by July next year.

According to BCM chief financial officer Brian Shepherd, about 126 000 properties have already been visited. A further 32 000 properties, which comprise commercial, industrial, agricultural and public service infrastructure, still need to be visited.

“Property values will be generated from this point on. Only once property values are available, could the effect on rating be considered.”

Estate agents earlier warned that residents were likely to see a substantial increase in rates, as the municipality’s current valuation roll is based on values obtained between 1990 and 1998.

Shepherd said the municipality was now in the process of working on the draft property rates policy, which would categorise properties. Shepherd said there were a number of issues council had to consider such as who would be eligible for rebates and exemptions. “Then we will also look at organisations like sports clubs and churches,” he added.

He said Buffalo City’s new metropolitan status would not affect property rates and the general valuation process.

He did, however, say rates could be affected if BCM had additional functions without any additional funding. All owners would be officially notified of their property values by March next year.

Source: Daily Dispatch