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Thursday, 14 January 2010

Your New Rates Municipal General Valuation Jan 2010

The City of Cape Town has revalued all the properties in the Cape Town Unicity in its Municipal General Valuation which was carried out on 1 July 2009.

It is currently posting its revised draft valuation of your property on the City’s website www.capetown.gov.za and you will shortly be receiving in the post a notice from the City officially notifying you of this revaluation with a request that you either accept it or object to it by a particular date (POSSIBLY IN APRIL 2010)

What can / should you be doing now that you have received your new draft rates revaluation?

You should now be establishing the factors / characteristics of your property which you can use to motivate a reduction in the valuation should you now feel that you have been overvalued.

Typical examples could be : a Council registered water course (river!) and immense rocks which eliminate your ability to develop further on your property as owners around you can with double / second dwellings, granny flats and the like - the presence of a six-metre wide overloaded Provincial registered trunk road (say Camps Bay Drive) on your front boundary which has dangerously speeding traffic on it and causes you difficulty in accessing / leaving your property by car for some hours during rush hours - the exposure to high winds and possible harm from fires in adjacent public open space, etc.

Other examples could be : a Council electrical or drainage servitude running through your property, a lack or loss of views compared with surrounding properties – steeply sloping sites - irregularly shaped sites inhibiting the ability to develop them properly or take advantage of the available view - south facing house - excessive distance from shops, schools, beach etc. necessitating wheeled transport for every journey – obliteration of views by adjacent building structures and so on

Once you have received your Council revaluation notice and before you rush into submitting an objection because you think it is too high, ask yourself whether you would have been prepared to sell your property in July 2009 (the date of the revaluation) for an amount less than the Council’s revaluation now presented to you in 2010. Only if you would have been prepared to have accepted a lower selling price (including the Selling Agent’s fees and VAT), should you then consider deciding whether to consult a qualified Valuer who will then be able to advise you as to whether your suggested lower valuation is valid or not.

Should you decide to approach a Valuer for professional advice, first request a fee quotation (probably on an hourly rate basis) before investigating with him / her as to whether your contention that the revaluation is too high is valid or not. If the Valuer disagrees with you, you have at least been given a quick and reasonably inexpensive professional opinion upon which you can decide whether to proceed with your objection or not. Should you be advised to or should you decide to proceed, you should then appoint the Valuer to assist you with your objection to the Valuation Court.

Estate Agents are also able to assist you with your objection and can help you considerably by presenting you with their written assessment of what your property would have sold for in July 2009.

The objection document is a very daunting document. CBRRA therefore suggests that you do not submit an objection without a technically correct motivation which is well prepared with professional help.

The South African Institute of Valuers can assist you with names of Valuers (Address c/o J.J.Hofmeyr & Sons, 13 Piers Road, Wynberg, 7800. Telephone 021 7611803).

Should you decide to object to the new revaluation which you have received, the document which you will shortly be receiving from the City will inform you where it has opened information centres which will assist you in the compilation of your objection. At these information centres, you will be able to ascertain the sales amounts and other details of the properties near your property to enable you to make an accurate comparison between such sold properties and your property.

Remember that if you live in a sectional title apartment block, you will again be billed separately and directly for your unit and not in your levy which used to reflect a proportion of the overall building rates bill.

Should your valuation have increased, this does not necessarily mean that your rates bill will escalate pro-rata to the valuation increase.

This is because the increase in the total overall value of all properties in the Unicity since July 2006 will probably mean that the Rate in the Rand may be adjusted down in this GV year. The current recession may even have had its effect on the new valuations, but this movement will differ from one suburb to another depending on the situations and market attractiveness of such suburbs. It could well happen again in this GV that in some areas the resulting new rates bills in July 2010 may result in lower rates bills in some areas and much higher rates bills in others.

This was considered to be a basic big flaw on the last GV and it will be interesting to see what happens this time – ie, has the City managed to improve its rating system so that all ratepayers are treated equally in their new rates rates valuations so that the new GV can be seen to have been equitable to all in terms of the Municipal Property Rates Act No 4 of 2004.

Ideally there should not be a situation which happened in the 2006 GV when of about 750 000 properties valued, 16% received reduced valuations, 50% received increased valuations by not exceeding 15%, 27% increased by between 15% and 39%, 5% increased between 30% and 40% and 2% increased by more than 40% some even up to 325%! Assuming that nobody whose valuations had increased by more than 15% would have objected, only about one third of the above total valuations would have been objected to, ie ±250 000 divided by ± 55 000 actual objections = ± 22%, which was far in excess of the City’s then claimed 8% objections.

For the next few years until the next GV, your new revaluation will stay constant (unless it is adjusted by a supplementary valuation in due course) and future rates bill increases will be based only on the Rate in the Rand applicable to your property.

One way or the other, be aware of your rights and start preparing to possibly pay more rates than the normal annual increase from July 2010 onwards, the extent of which will only be revealed to you after the forthcoming Council rates revaluation notice which you will be receiving shortly is received by you and the new Rate in the Rand is announced by the City when it announces its next budget this year.

Ratepayers / Residents' Audit of CCT's JUL'06 General Valuation (GCTCA)

In February 2007, The City of Cape Town released its new provisional Valuation Roll for Ratepayers’ responses or objections in preparation for the new rates bills. The new valuations were based on the City’s assessed market values of all types of properties as at 1 July 2006, using sample sales properties to interpolate the comparative values of unsold properties.

Ratepayers were given only 30 days within which to object, which period the GCTCA managed to increase to 60 days.

The information centres established to assist ratepayers in their objections supplied too little information for ratepayers to assess comparatively the accuracy of the City's valuation of their property.

Resulting from the widely differing and seemingly inconsistent valuations and rates bills which ratepayers eventually received, the GCTCA embarked upon an audit of the City’s 2006 General Valuation (GV).

This audit took over two years to complete, submit, discuss with City officials in an attempt to ascertain how the City had compiled its 2006 GV, what it has learned from its last two GVs it has executed and what it has learned from the extensive GCTCA audit and the other independent GV audit which was carried out by IPTI (the Canadian International Property Tax Institute).

Our audit also examined the City’s 2007 rates policy to establish a holistic impression of how of the rates formula would affect all ratepayers regardless of where they lived in the Unicity.

The above audit was prepared following a widespread impression amongst ratepayers, residents and property owners generally that the quality and accuracy of the City’s 2006 GV left much to be desired.

Areas of concern contained in the GCTCA audit included the obvious discrepancies in valuation in given areas, regardless of their economic levels.

For example, the City claimed that its 2006 GV had been a successful valuation because there had only been about 8% objections. The true analysis of this claim showed that of about 750 000 properties valued, 16% received reduced valuations, 50% received increased valuations by not exceeding 15%, 27% increased by between 15% and 39%, 5% increased between 30% and 40% and 2% increased by more than 40% some even up to 325%! Assuming that nobody whose valuations had increased by more than 15% would have objected, only about one third of the above total valuations would have been objected to, ie ±250 000 divided by ± 55 000 actual objections = ± 22%, which was in excess of the City’s claimed 8%.

High increases in valuations did not occur only in wealthy areas. The Bokaap was an example of such a situation where real hardship has resulted from the 2006 GV revised valuations, an entire area of seemingly asset-rich but cash-poor households.

Among many concerns, a difference of opinion arose with the City as to the proper interpretation of the basic component of the rates formula, the definition of “market value” as defined by the 2004 Municipal Property Rates Act and the lack of bigger rebates for indigent ratepayers at the bottom income earning levels.

The essence of the GCTCA’s concerns is that every ratepayer acknowledges that he or she will have to pay increased rates to help run the Unicity each year. However, every ratepayer wants to be treated equally in this matter. It is unacceptable and inequitable that, because of the valuation methodologies used, some people subsequently received reduced rates, some receive slightly increased rates and some receive massive increases, regardless of the economic levels of the areas in which they reside.

THE GCTCA believes that the City Valuation Department is indeed seeking ways to improve the quality of its 2006 GV and has welcomed a recent opportunity to continue with the dialogue which it initiated by means of its audit with City officials for the benefit of the City and all ratepayers.

At a meeting requested by the City’s Valuation Department, the GCTCA was shown how the City has reacted to the GCTCA and IPTI audits and has prepared for the new GV which was executed on 1 July 2009 with the new valuation roll and resulting rates bills due to be published in 2010. The GCTCA awaits the new GV with interest and continues to hope that it will play a constructive roll in the achievement of GVs which are fair to all concerned.

Philip Bam
John Powell (CBRRA)
For GCTCA

September 2009

EXTRACT FROM THE CONSTITUTION OF THE GREATER CAPE TOWN CIVIC ALLIANCE


NAME
1. The name shall be THE GREATER CAPE TOWN CIVIC ALLIANCE, henceforth referred to as “The Alliance”.


NATURE

2. The Alliance shall be a voluntary association which represents residents, ratepayers, civics and other interest groups within Cape Town, that are concerned with matters of government local and other spheres and are not aligned to any political party or other structure with a separate existence from their constituent members.


LEGAL IDENTITY & PERSONA

3. The Alliance is a “universitas personarum”, an independent legal persona or entity, distinct from the individuals who comprise it, having the capacity of acquiring rights of property, of incurring obligations and of suing or being sued in its own name and having perpetual succession, and neither members nor the Executive Committee shall be answerable for the debts or engagements of the Association.


AREA

4. The area of The Alliance shall be the municipal area administered by the CITY OF CAPE TOWN.


OBJECTIVES

5. The objectives of The Alliance shall be the following:


5.1 To protect and promote the interests of its members in regard to objectives 5.2 and 5.3

5.2 To obtain membership of any forum or similar body established for the discussion of, or negotiations on, the constitutional status of local government.

5.3 To make representations to and, where relevant, to gain access to any forum, committee, federation or like body established for the discussion of, or required to deal with, the constitutional, financial or organisational changes to government with the purpose of ensuring that any such changes to government in the area covered by The Alliance furthers the interests of its constituent members.

5.4 To work for and promote the recognition of The Alliance as a body whose prior participation in the decision process would first be sought to ensure the favourable outcome of government decisions affecting its area.

5.5 To set up effective public participation systems to ensure effective participation by the people in planned and proposed government processes.

5.6 The Alliance shall not normally concern itself with any issue which is parochial or peculiar to a member’s area unless the principles involved could affect other members, or unless support on an issue or issues is so requested by the affected area’s chairperson.


MEMBERSHIP

6. The members of The Alliance shall be those bodies that are ratepayers, tenants, residents, non-politically aligned civics associations or other bodies constituted for similar purposes, which are not members of any other regional or national body with aims or objects conflicting with those of The Alliance, and which;

6.1 Have a constitution with the aim or object of promoting its members’ interests in local government;

6.2 Have a provable list of members in good standing;

6.3 Accept the objectives of The Alliance and this Constitution by a minuted resolution at a properly constituted general meeting of its members.

6.4 Notwithstanding that membership is restricted to organisations as referred to in 6 above, each member Body may be represented at any meeting of the Alliance whether General or Executive by not more that two participating members, excluding observing members and providing that those two members are duly mandated to represent the body they belong to.

6.5. It is hereby recorded that membership of The Alliance is granted to a member organisation and that the individuals so representing that organisation are understood to speak for and on behalf of their parent body and so carry that body’s mandate to express their views.

7. The bodies, which have attested to this Constitution, shall be the members of The Alliance together with any body that is admitted as a member in terms of Clause 8.

8. 8.1 After the founding of The Alliance, any body which applies for membership shall, if it qualifies in terms of the provisions of Clause 6, be admitted as a member, excepting that The Alliance reserves the right to associate or disassociate itself with any other body in accordance with the provision of this Constitution.

8.2 It is hereby noted that the Ratepayers, Civics and Residents Associations that caused the formation The Alliance in June 2005 are automatically accepted as full members of The Alliance and, by virtue of their involvement in the inaugural meetings of the Association, hereby bind themselves to this Constitution.

FOR FURTHER INFORMATION ABOUT THE GCTCA AND ITS ACTIVITIES, CONTACT JOHN POWELL OF CBRRA ON campsbayratepayers@gmail.com

Wednesday, 23 December 2009

Welcome, enjoy your visit and compliments of the season!

Having the privilege of living here all the year round, CBRRA and the residents of Camps Bay cordially open their arms to and welcome the many thousands of visitors to our beautiful suburbs which in Clifton, Camps Bay and Bakoven contain arguably the Cape’s best and most popular beaches per square meter of leisure space !

We trust that you will enjoy every moment of your visit(s) here, that you will look after yourself in the sun, in the water and on the roads and that you will contribute to the enjoyment of all beachgoers by taking your surplus baggage and rubbish with you when you leave.

We wish you and your families compliments of the season and hope that you will celebrate it happily in whatever manner you usually do in the realisation of the fact that the two richest possessions in our lives are our health and our cordial relationships with others.

And have a safe trip home with the fondest of memories of this neck of the woods !

* Bumpersticker seen in Camps Bay last year : “Welcome oomie, welcome tannie, we just like your lekker money” !!

Sunday, 6 December 2009

CBRRA co-opted two new members onto ManCo

CBRRA Manco was strengthened when two additional members were co-opted onto the committee at the monthly meeting held on 2 December 2009. The members are Richard Dames, who lives in Geneva Drive, and Charles Wells, from Atholl Road. They are joining several sub committees including finance, planning, heritage, environmental issues and cleansing.

Manco welcomes them and sincerely hopes that they will find their participation in CBRRA matters stimulating and rewarding.

Manco continues to seek people who are interested and motivated to be a part of the CBRRA action. This is essential to ensure continuity of the committee which is a vital factor in assisting residents in their dealings with Municipal and Governmental authorities.

If you are interested to join CBRRA's committee, please email us at campsbayratepayers@gmail.com.

Tuesday, 1 December 2009

An Update on the Oudekraal Site

Following the recent judgement in the High Court, The Argus, in an article dated 12 November 2009, as follows :

Oudekraal site may still be developed

Like initial reports about American writer Mark Twains's supposed death, any suggestion that Oudekraal has now been unequivocally saved from development may be greatly exaggerated. A new process initiated in may to explore development opportunities for this privately owned property stretching along the slopes of the Twelve Apostles between Camps Bay and Llandudno, is continuing, the consultant co-ordinating the process confirmed this week. This is despite the Supreme Court of Appeal (SCA) in Bloemfontein recetly upholding a Cape High Court decision that there are no township development rights on one of five erven making up this elite property, and confirmation last week that the surveyor-general's office had finally stamped "cancelled" across the township plan that dates from the 1950s.

Illegal structures on Camps Bay beach

In the second week of November 2009, there appeared on the lawns of the Camps Bay main beach, three structures which were purported to be public change rooms.

Made out of flimsy materials with no door locks and bolted to huge concrete blocks placed on the lawns for stability against the wind, the changing-rooms were festooned with what the Council termed “ambush marketing” promoting breakfast foods.

The structures rapidly became tatty as a result of their flimsiness and the action of the wind. There were signs of drug usage and faeces in the cubicles and it was obvious that they had to be removed without any delay.

The owners of the restaurants immediately behind them justifiably complained to the Council and were strongly supported by CBRRA, the Camps Bay Community Police Forum, Camps Bay Watch and the Camps Bay Community Security Initiative.

The “permit” which the advertisers had received from the Council for this project had erroneously been given to them by a junior clerk in the Council Sport and Recreation Department without any prior public participation or referral to CBRRA and the like.

In the face of extreme threats from the advertisers in respect of the legal consequences should they be forced to remove the structures, the Council gave them due notice of a deadline for the removal thereof in terms of the relevant advertising by-law. The deadline for the removal by the advertisers was not met and the Council duly removed the offending structures in the fourth week of November 2009.

CBRRA commends all the parties who took part in the wide public protest against these structures and thanks the Council for its prompt reaction. It wonders just how the advertisers ever thought that this campaign of theirs would ever further the cause of the products which they attempted to promote.

Guidelines on World Cup 2010

Introduction

The purpose of this document is to create awareness around probable business travel restrictions during the Soccer World Cup to be held June - July 2010.

Although the official World Cup is 11 June - 11 July 2010, the period between March and July 2010 will be an exceptionally busy period with the pre- and post- arrangements that will have a huge impact on business travel. The grid below indicates the magnitude of the disruption to business travel over this period which includes other major events beside the FIFA World cup.

School Holidays: 27 March - 11 April, 26 April 10 June - 11 July

Events

Cape Argus 14-Mar
Comrades 30-May
Cape Epic 21 - 28 March
Two Oceans 03-Apr
Durban July 03-Jul
Grahams Town Festival 20 June - 08 July
2010 World Cup 11 June - 11 July
Public Holidays Human Rights day 21-Mar
Public Holiday 22-Mar
Good Friday 02-Apr
Family Day 05-Apr
Freedom Day 27-Apr
Workers Day 01-May
Youth Day 16-Jun

Around 2010 World Cup
- Media Groups arrive 25 April and depart two weeks after final
- Teams Arrive around 03 May
- Supporters arrive around 6 June until departure after post tours
- FIFA Family arrive around 01 May until 2 weeks after final

Overview of what is to be expected during the World Cup:

1. Volume of Travellers expected
The World Cup is approximately 15 times bigger than the 1995 Rugby World Cup. The media contingent that will attend is estimated at 30 000. Business travel is disrupted purely due to the volume of supporters.

All indications are that approximately 220 000 long haul visitors will attend, 180 000 visitors from Africa and an average of 150 000 local supporters. On any match day it is envisaged that 100 000 travellers will need to use a travel commodity i.e. flight or road / rail transportation.

An additional 2 000 busses have been imported (overload on road transport) to carry these supporters. It is predicted that supporters will watch their team play every 3 or 4 days. When their teams are not playing, supporters will frequent the Fan Parks or embark on tours within the city of their choice.

2. Fan Parks
Fan Parks are situated in central areas so that general public can watch all the games. Entrance to the Fan Parks is free and it is expected that these Fan Parks will attract a lot of visitors. In Germany 2006 one Fan Park attracted 500 000 spectators to watch one game. To avoid large transport infrastructure expense, training venues will also double as public viewing sites.

Fan Parks in the Western Cape
The Grand Parade Somerset West Road
Stellenbosch Bellville Velodrome
Swartklip Atlantis
Khayelitsha Imizamo Yethu (Hout Bay)

Training Facilities in the Western Cape
Newlands Rugby Ground UCT Rugby Ground
UWC Soccer Field Bellville Rugby Ground
Stellenbosch Rugby Ground Athlone Stadium

Fan Parks in Johannesburg (list to be updated)
Mary Fitzgerald Square in the Newton precinct
Fan Parks in Soweto are to be expected.
Innes-Free Park in Sandton,
Walter Sisulu Square in Kliptown

Fan Parks in Durban (list to be updated)
The Durban Beach Front has been earmarked as one of Durban's preferred sites for one or more Fan Parks during 2010.

3. Flights
To date no airline has released any prices or strategies for the World Cup period.
On pre and post match-days flights into and out of the venue cities will be overbooked. Due to the sheer volume of travellers, huge delays can be expected.
World Cup teams will use charter aircrafts and plan to use 2nd tier airports however their supporters will use the general airports. These airports will focus on scheduled international and domestic flights.

4. Accommodation
All the major hotel brands within South Africa have contracted with MATCH at a pre-defined room rate and therefore the normal Corporate rates will not be available during this period.
According to FIFA there is an approximate shortfall of 18 000 rooms for the World Cup. This supply and demand scenario allows B&B's / Guesthouses to offer rooms at a premium.

5. Car Rental
It is most likely that all car rental companies will go on "stop-sale" for the period of the World Cup and rental cars will be scarce.

6. Road Closures
It is indicated that there will be limited access and in some instances complete road closures in the areas surrounding the stadium and fan parks. This will make it difficult for travellers to move freely between offsite meetings.

7. Critical Date
The next critical date for the WC2010 is the 4th December 2009 when the Pool draw is completed. This draw will indicate where the teams will be based and where their supporters will be spending most of their time.

8. Fixtures
The match schedule will be updated after the draw on the 4th December 2009. Games will be played at: 13h30, 16h00 and 20h30. Travellers need to allow for traffic congestion both at the stadium and the Fan Parks. It is advisable to allow 2hrs lead time if travelling to / from these areas.


Recommendations for travel during this period
  • · Do not travel during these periods unless it is critical to travel.
  • Plan your trip well in advance, changes to a ticket over this period will be extremely difficult and very expensive.
  • Try to make appointments at a location that is in the opposite direction of a stadium / fan park..
  • Take flights during the times of when the games are being played. Games start at 13h30.
  • Allow for a minimum of 2 hours to get to the airport in Cape Town and possibly 3 hours for Johannesburg. The congestion on the roads both to and from the Airports is going to be chaotic - plan for delays.
  • Parking at the airport will be virtually impossible and it is advisable to get someone to drop / collect you from the airports. Transfer companies will be busy with tourists and will also be very expensive.