News from Barberton: Submitted by Andy Nuns.
Just so you have a record of it the following was the outcome of our meeting with the National Treasury and the Umjindi Municipality on the 7th August.
We had a 3 hour meeting with the National Treasury, the Municipality and the Valuators.
The following was decided:
Agricultural Holdings/Farms
The Municipality admitted that the information held by them (including the valuation roll) was inadequate/incorrect to process any rates at this stage and they accepted they had not Consulted properly with this sector. In consequence, they would temporarily suspend any rates payable and they would consult regularly with this sector by holding meetings with them. Only when all items had been satisfactorily resolved would rates become payable but these may be backdated to 1 July 2009.
Barberton Townfolk ratepayers
It was decided that this could not be resolved immediately because a lot of work still needs to be done on the valuation roll. A supplementary valuation roll may be prepared to correct the position but we are still looking into this .
Consequently, and while we consider reasonable progress is being made to resolve the issue , the Ratepayers Association indicated that its members who are part of the dispute would pay the old property rates plus 10% instead of witholding the new property rates in full. In addition, the ratepayers members would pay the new electricity, water, sewerage and refuse removal costs in full.
The Municipality are not happy with this approach.
Regards
Andy Nuns
Subsequent to above we only paid old rates plus 10% for July and we are waiting to see what happens. In the meanwhile we are specifically identifying large tracts of under/overvaluations so we can demonstrate the whole valuation roll is flawed.
They have identified from legal cases that theoretically you can only withold rates if services are not up to scratch. We have explained it is the admin services which are very poor and these resulted in the flawed valuation roll which does not comply with the provisions of the ACT etc.
They also have a local bye law which theoretically allows for them to take your electricity payments (including prepaid) and allocate them to the rates – probably copied it from Durban. Besides giving them Nersa rulings which indicate they cannot do this we have pointed out that as their valuation does not comply with the provisions of the ACT and it treats people unfairly it is not valid and as such they cannot charge us any rates at all as the old roll has expired and the new one is invalid. The Municipality admitted in meetings (and we confirmed this in writing at the time) that the new roll is not market value it is market value less a recession allowance. Consequently it does not comply with the ACT as the recession happened after the date of the valuation. Also the recession allowance has ben applied in an unfair manner and it differs on properties from 90% (former disadvantaged areas) to 70% to nil percent to plus 30%. Overall the valuation roll was reduced by 50% for the recession. It is this overall low value which has resulted in us being landed with a rate of 0,009 cents in the rand which is totally out of line with all surrounding towns. We have copies of the two valuations – the first one which municipality said was too high and the second one where the discounts were included and we have put them together so you can compare the value on the two valuations for each stand. Had the valuation roll not been amended our rate would have been .0045cents in the rand.
In addition we have pointed out to them that if we withold rates or pay a lesser amount we are not in arrears but merely disputing the amount of the rates and in addition we dispute their right to charge us anything at all on an invalid valuation roll and the amount we are paying (old rates plus 10%) has merely been done as an act of good faith while progress to resolve the Dispute is being made. By inference we are saying there are no arrears to which electricity payments can be allocated.
Regards
Andy
082 880 7469