VAALOEWER RATE PAYERS ASSOCIATION
P.O. BOX 6277, VANDERBIJLPARK, 1900, email: carl.scholtz@acenet.co.za, 083 6304619
30 JUNE 2009
OUR REF: C SCHOLTZ
YOUR REF: TW MOETI
ACTING MUNICIPAL MANAGER
EMFULENI LOCAL MUNICIPALITY
BY HAND
DEAR SIR,
RE: OBJECTION AGAINST NEW RATES TARIFFS ON VACANT LAND AS PER NOTICE NO. 62/2009 & 64/2009 (IMPACT OF NEW PROPERTY RATES POLICY AND TARIFFS).
As per the above notices published in the local newspapers it appears to be misleading in the sense that it does not allow the public to make any objections within a specified time frame, although the law allows for 30 days and the general public is not aware of this. We would also appreciate it to confirm in which publications did the adverts appear on 1st June 2009.
The status of rates tariffs up to 30th June 2009, applied to properties in Vaaloewer (average land valuation ranging from R5000.00 to R18 000.00) are as follow;
1. Developed property based on land value only of R13 000.00 @ 0.0966 = R104.65 per month.
2. Vacant residential land value of R5 000.00 (low) @ 0.15270 = R63.63 per month.
3. Vacant residential land value of R9 000.00 (average) @ 0.15270 = R114.53 per month.
4. Vacant residential land value of R18 000.00 (high) @ 0.15270 = R229.05 per month
All vacant land is rated at a much higher tariff equal to the business tariff applied to business properties, to promote and encourage development of land.
Based on the new proposed rates tariffs (average land valuation of R85 000.00 to R245 000.00) it will be as follow;
1. Developed property based on new valuation (land & improvements) of R500 000.00 less R150 000.00 rebate @ 0.0064 plus 30% discount = R130.66 per month.
2. Vacant residential land value R130 000.00 less R40 000.00 rebate @ 0.064 = R480.00 per month.
3. Vacant residential land value R180 000.00 less R40 000.00 rebate @ 0.064 = R746.66 per month.
4. Vacant residential land value R230 000.00 less R40 000.00 rebate @ 0.064 = R1013.33 per month.
As can be seen from the above examples this is our main reason for concern, which could impact negative on the growth and development of our Town Vaaloewer and many other developments within the municipal boundaries of Emfuleni. This could also have an impact on existing home owners in our area should a large number of vacant property owners abandon their vacant land due to not being able to afford the high rates & taxes.
Vaaloewer was originally proclaimed as a Holiday Township with the intention for owners to develop homes for weekend and holiday leisure, retirement or even permanent living. Due to this most properties are owned as second properties. You will realise that if economical times are good, this is an area where people want to and can afford to purchase property and develop homes on it. During bad economical times or when the country is in a recession like currently the situation, it is difficult for people to afford looking after their primary homes and second homes & properties have to take second priority. We all know that the Vaalriver is a major attraction for tourists and people from all over the country, which is also a good source of income for our region and generates work for many.
As from 2000 our town was demarcated back into the municipal boundaries of Emfuleni Local Municipality. Prior to this Vaalower as a Town functioned as an independent Rural Council under Western Gauteng Services Council. We had our own budget compiled yearly since 1994 and been able to contribute largely to the development of Vaaloewer by having various services upgraded and many projects completed.
For the past few years Vaaloewer was a forgotten & neglected area in terms of service delivery and upkeep, part of the major Emfuleni area with one budget for the whole area. Through our Rate Payers association we have over the past year been able to re-establish and build up strong ties with the various departments of the Municipality in assisting us with upkeep and upgrade of various services rendered (ie. roads, water purification & reticulation, electricity, refuse removal). The Rate Payers association has also negotiated for the subdivision and transfer (currently in process) of a portion of land in extent of ±8516m² on which the current municipal water purifying works are situated, to enable the council to take full ownership of that land which is still currently privately owned land. The current owners were taxed on the valuation of the land including the council water works and paid rates & taxes accordingly without any compensation from the council.
During the past few years when the property market was booming all over South Africa, many new people acquired land in Vaaloewer and within Emfuleni boundaries with the intention to develop a home on. As we are all fully aware that during the past year things have changed drastically with interest rates hikes, high cost of petrol and the increase in just about anything we need on a daily basis to live on. This caused that although property values were very high prior to the new valuations compiled as at July 2008, properties are now worth a substantial amount less due to the global economic situation affecting just about every citizen in South Africa.
All major Banks have made is more difficult for anyone to obtain bond finance to purchase property and or to develop it due to the National Credit Act that was promulgated and due to the affordability of individuals who are battling to cope with existing bond repayments, vehicle payments, loans and other credit etc. Due to this situation it has also impacted on all industries and business and job losses rise on a daily basis. Although various interest rate cuts have been given through to consumers, it is going to take some time for the whole market to recover.
We promote development in our area but have also experienced various difficulties in the past by getting developments off the ground due lack of getting the right support from the council. Some subdivisions have taken several years to be finalized before properties could be sold and houses developed thereon. There are also cases were owner’s battle for 6 months plus to get building plans approved through the correct channels just to find that other individuals develop without proper approval and having less problems getting their plans approved on the end of the day. This also causes people to loose interest in an area.
Currently ratepayers within Vaaloewer fund a security service at own cost to prevent brake-ins into houses, which occur often and we have very little support from the Police as they are far away and also do not have the manpower to deal with the large demographic area of Vanderbijlpark and surrounding areas. This also has a negative impact to any new buyers in the area that want to develop. No point in developing a weekend/ holiday home to find it broken into several times a year.
As we are situated ±35 km’s from Vanderbijlpark it is clear that all residents residing at Vaaloewer have to travel long distances at great cost, shops are not close by and more expensive than in town were large retail stores are situated. Development cost is much higher and more expensive to build so far out as high delivery cost applies to all building material needed on site.
We hereby attach a comparison of tariffs and rates levied in various surrounding towns based on a residential vacant land value of R130 000-00, R230 000-00 and R500 000-00 just for calculation purposes. On this can be seen what other towns charge for the same values. The tariffs and rates that Emfuleni intends charging are much higher, exorbitant and totally out of line than even charged in JHB, which we surely cannot be compared with.
We hereby propose that the council charge the same rate as for businesses as is currently the case or to compile a rate based on combination of what the neighbouring towns are charging. We further look forward to a positive response and mutual understanding for future dealings.
Yours faithfully,
_________________________________________
For VAALOEWER RATE PAYERS ASSOCIATION
CARL SCHOLTZ – CHAIRMAN
083 6304619
COPY: ALL VAALOEWER RATEPAYERS
VAALOEWER
Vaaloewer is the most south-western point within the area of jurisdiction of the Emfuleni local Munisipality and is in extent approximately 2.6km² in size, thus representing a very small area of the total geographical area of the Emfuleni Local Municipality. The town previously formed part of the Western Gauteng Services Council within situated
Vaaloewer was declared an approved township by the Administrator of the former Transvaal Administration through Administrator’s Notice 1386 as published in the provincial Gazette of 29 August 1973. The approved township was made subject to the conditions as set out in the Schedule that accompanied Administrator’s notice 1386.
In terms of section 89 (1) of the Town-planning and Townships Ordinance, 1965, the Administrator has further approved of the amendment of the Malelane Town-Planning Scheme, 1972, to conform with, the conditions of establishment and the general plan of Vaaloewer Township. This amendment is known as the Malelane Amendment Scheme no. 7 (Administrator’s Notice 1389 published in the Provincial Gazette of 29 August 1973).
Vaaloewer Township is thus subject to the conditions as set out in the aforementioned Schedule as well as the Malelane Town-Planning Scheme, 1972.
• Proclaimed as a Town in 1973 by Rimba Investments (Pty) Ltd – Developers. Craboni Investments owned Rimba Investments with directors Prof. Jan Crawford, Piet Botha and Nicolaas v Niekerk who were all auditors from Pretoria. Werner Ackerman (Mimi Coertze’s husband) was also later involved and his holiday house was built were Goose Bay Canyon Conference Centre is today situated and the amphitheatre was originally built for Mimi to sing from.
Abri & Pieter Struwig acquired Volksland Estates (Pty) Ltd in 1981 as sole agents for Vaaloewer.
Abri & Pieter Struwig later acquired Rimba Investments from Craboni Investments in 1983.
Hugh Temlett and Johnny Breedt took over Rimba in 1990 and later Evert Scholtz and a Malasian Company also became involved until all properties were sold to individual owners
• 1973 – 1990 services maintained by developers – Private Town
• 1991 – Services taken over by Peri Urban (Local Government Affairs Council) on request of the Vaaloewer Action Committee (property owners thinking that we would get better services for less money and also receive government grants for projects). The Vaaloewer Action Committee was chaired by Hennie vd Walt a weekend homeowner (councilor in Edenvale and also served on the Regional Services Council) and Eddie v Zyl a permanent resident.
The only grants obtained at the time were for the development of the Water reservoir, purchase of a TLB and tractor all financed by Regional Services Council funding. All services ie. roads, water reticulation, electrical network, parks and open spaces were transferred by Rimba Investments to Peri Urban as per original township proclamation conditions.
• 1993 – Vaaloewer Rate Payers Association formed under leadership of Ben Smith, a homeowner and ex President of SASBO Union. Other chairpersons were André Benadie, Ben v Niekerk, Flip v Zyl, Lappies Labuschagne, Hugh Temlett and Carl Scholtz (current).
• 1994 – Achieved after arbitration, Agreement between LGAC, Rimba Investments & Rate Payers: approval of subdivision of Erf 1 Vaaloewer (riverfront) for development and portion to be donated to the ratepayers of Vaaloewer. Erf 3/1 Kingfisherbend riverfront homes. Erf 4/1 Boatclub & units. Erf 5/1 Conference centre & accomodation. Erf 6/1 stand zoned for 2 homes, Erf 7/1 Birdhaven residential development. Rem Ext Erf 1 now owned by Vaaloewer Voluntary Association formed in 1997 (riverfront nature park area for use by all residents) to control and upkeep area for use of residents, by paying yearly subscriptions.
• 1994/5 – Services taken over by Western Vaal Metropolitan Council (VDBP Municipality)
• 1995 – Vaaloewer Rate Payers Association registered as a Party to contest in the municipal elections
• November 1995 – Vaaloewer municipal services moved from VDBP Municipality to Western Gauteng Services Council (demarcation of areas) with the municipal elections and the Vaaloewer Rural Council were formed and ratepayers were elected as councilors to represent Vaaloewer. Councilors during this period were Hans vd Merwe, Martin Struwig, Ans & Raul Stausebach, Dennis Wilson, Ben Smith, Norman Cassel, Johan Werner and Hugh Temlett all residents of Vaaloewer.
• 1997 – Vaaloewer Voluntary association was formed by the Rate Payers Association to take ownership of the remaining ext erf 1 Vaaloewer. Transfer of the property was only finalised into the name of the association on 30 November 2005 due to various reasons, mainly from Rimba Investments (developers) side.
• 1997 – Land Development Objectives (LDO’s) phase 1, for a five-year period was compiled. The community of Vaaloewer was involved in the process and through this certain projects and developments were identified and prioritized and completed during 1998.
• 1998 – LDO’s phase 2
• 1999 – LDO’s phase 3
• 2000 – LDO’s phase 4
• December 2000 municipal elections – Vaaloewer demarcated back to Emfuleni Local Municipality (VDBP) and Vaaloewer Rural Council cease to exist. Vaaloewer’s budget, employees, assets and liabilities will now be part of Emfuleni.
• Rate Payers Association to be more active to ensure that basic services are rendered, necessary upgrades done and new projects identified and implemented.
• 2001 – 2009, Emfuleni Local Municipality – not much achieved to date and Ratepayers association again communicated with various departments (2008/9) in order to deal with problems, identified by the community.
Rate Payers through Vaaloewer Voluntary association negotiate with Council to obtain the town hall (Rimba originally built the hall and later transferred it to Peri Urban at no cost). Due to moratorium on sale of council owned property nothing has been finalised to date.
• 2008/9 – ???????????????????????????????????? Carl to complete negotiations with council ****************
• 2009 – The Rate Payers association has negotiated for the subdivision (currently in process) of a portion of land in extent of ±8516m² on which the current municipal water purifying works are situated. This will enable the council to take full ownership of the land, which is still currently privately owned land by Vaaloewer Voluntary Association. The current owners were taxed on the valuation of the land including the council water works and paid rates & taxes accordingly without any compensation from the council since 1997.
• 6/2009 – Emfuleni Local Municipality publish new rates tariffs in local press to be implemented 1/7/2009. On vacant land the tariff is ten times higher than on a developed property. See objection of the Vaaloewer Rate Payers Association.
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1997 – Land Development Objectives (LDO’s) for a five-year period was compiled. The community of Vaaloewer was involved in the process and through this certain projects and developments were identified and prioritized and completed during 1998;
1. Water inlet structure/ pump station and new pipeline to reservoir, R550 000
2. Vaaloewer ave from Entrance to Candy’s was tarred, R698 000
3. Fire Hydrants, R11 000
4. Six street lights at strategic points, R11 000
5. RAID project – main entrance building upgraded to establish offices for administration, R140 000
6. Kopano Housing project – R15 000 grants from government for first time homeowners. Fifteen beneficiaries identified through public participation. Six stands purchased from individual owners and subdivided into eighteen stands of ±300m² on which sixteen houses were completed. Project cost R300 000. To date none of these properties were legally transferred to the owners as was originally agreed to by all parties concerned, which needs some clarity with Emfuleni council.
7. Protection, Security and access control
8. Fencing of town, Secure and Maintain
1998 – LDO’s phase 2;
1. Tarring of roads River, Vink & Visarend, R500 000
2. Upgrading storm water system, R200 000
3. Installation of street lights, R30 000
4. Active promotion of town with newsletters
5. Installation of fire hydrants, R10 000
6. Upgrading of internal electricity distribution network and completion of ring network, R100 000
7. Fencing of refuse dump & planting of trees, R30 000
8. Beatification of town by planting indigenous trees, R10 000
9. Notice board at entrance, R1500
10. Maintenance of the water reticulation network and regular monitoring of the water quality
11. Compilation of a strategy to restrict traffic violations in the town
12. Establish, in conjunction with Vaal River Representative council, emergency services to include fire and ambulance to be implemented in Aug 1998 at Vaal River Representative council – Louisrus
1999 – LDO’s phase 3;
1. Advertising sign at the intersection to Vaaloewer/ Lindequesdrift/ Potchefstroom, R30 000
2. Extension of electrical network in River, Vink and Korhaan streets, R113 000
3. Stormwater projects in Hadeda, Riverview, Katlagter, Hoep-Hoep and Suikerbos streets, R177 000
4. Further upgrade of water purification works, R64 000
2000 – LDO’s phase 4; All plans and projects were re-prioritized and will be handed to the new Council