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Property Valuation Rolls & Revenue

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).

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Property Valuation Rolls & Revenue

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  1. Institute of Municipal Finance Officers

  2. 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 Institute of Municipal Finance Officers

  3. 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 Institute of Municipal Finance Officers

  4. Correctness of Valuation Rolls (2) • 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 Institute of Municipal Finance Officers

  5. Correctness of Valuation Rolls (3) • 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 Institute of Municipal Finance Officers

  6. 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 Institute of Municipal Finance Officers

  7. 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 Institute of Municipal Finance Officers

  8. 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 Institute of Municipal Finance Officers

  9. 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 Institute of Municipal Finance Officers

  10. 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 Institute of Municipal Finance Officers

  11. 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 Institute of Municipal Finance Officers

  12. 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.za Institute of Municipal Finance Officers

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