1. City of Johannesburg Stakeholder briefing
Rates Policy review 2018/2019

2. Table of contents 1. Legislative background
2. Rates Policy review process
3. Stakeholders for Rates Policy review
4. The context for the review of the Rates Policy
Risks
5. Proposed changes in draft Rates Policy
6. Property categories, Ratios and Rates for 2017/2018
7. Rates Base used to calculate rates for 2017/2018
8. Venues , dates and times for meetings
9. Communication strategy
10. Questions and discussion

3. Overview the Rates Policy
Legislative background
Property rates is a tax in terms of Section 11 of the Prescription Act 68 of 1969 and the Council may recover rates in arrear for a period of up to 30 years
The Rates Policy guides the City in all aspects of levying rates on property owners as required by the Local Government Municipal Property Rates Act 6, of 2004 (MPRA)
Property Rates are levied as a cent in the Rand based on the market value of the property as reflected in the valuation roll
Council levies different rates for different categories of rateable property based on zoning
Council through the Rates Policy gives reductions and rebates on certain categories of properties as promulgated
Council must review Rates Policy annually
Council must conduct public participation on the draft Rates Policy in accordance with Chapter 4 of the Systems Act

4. Rates Policy review Processes 2018/2019
Rates Policy review is divided into two phases
Phase one is when the City presents the first Draft to all the stakeholders
Stakeholders will be required to make input and submission
All inputs and submission received from all stakeholders will be consolidated into a final draft Rates Policy.
Final draft Rates will be table in Council in March as part of the Budget approval process.
Phase two of the Rates Policy review take place in April
This phase takes place at the same time as the public consultation for IDP and Budget
Property Unit reports back to stakeholders on how their inputs have assisted in updating the policy from the submissions and comments submitted
Property Unit will present the proposed tariffs for 2018/2019 financial year
Stakeholders will be required to make inputs and submission one last time
A report will be prepared to Mayoral Committee and Council that contains all the inputs and submissions from different stakeholders
During the Budget speech, Council may respond

5. Rates Policy review Processes 2018/2019
First phase public input into the Draft Rates Policy 2018/2019
First phase starts on the 27th of January and end 28th February 2018
Due date for comments, submission and inputs is 28 February 2018
Second phase proposed Rates Policy and proposed Tariffs (April 2018)
Rates policy is available on :
Written comments can be:
ed to :
Fax Number :

6. Stakeholders for Rates Policy review 2018/2019
Business Forum
Business forum represent a majority of business formations within Johannesburg
SAPOA
SAPOA represent a majority of property developers
Ratepayers Association
Ratepayer Association ratepayers from different areas with the City of Johannesburg
NGO’s
NGO’s organisation that have interests in the City
Management Agents association
Represent management agents within the City that managing sectional and non-sectionalized properties
COGTA national and provincial
National Treasury
JAA
-Representing transferring attorneys

7. Civic education on the Rates policy, Rates By-law and its impact
Draft Rates Policy 2018/2019
The Rates Policy review process for 2018/2019 financial year is done under the following background :
City is going to implement its third Valuation roll under the MPRA as amended
The Rates Policy has been reviewed annually since 2008 to take into account legislative changes and City policy direction and public input
The review was also done enhance policy while ensuring that the required revenue is realized.
The review of the Rates Policy considers the pro-poor policy of the City
It is important to ensure that there is alignment between the Rates policy and other policies as well as the Strategic Direction adopted by the City
Tariff Policy provides that Council rates should be affordable, competitive and promote economic development.
Civic education on the Rates policy, Rates By-law and its impact
Civic education on the impact of the amended Municipal Property Rates act
Implementation of the Mayoral ten point plan strategic direction for the City.

8. Risks that could impact rates revenue
Draft Rates Policy 2018/2019
Risks that could impact rates revenue
Credit rating of the Country is not looking good
Economic growth of the Country has slowed down
CPI target set by the Reserve Bank
Electricity increase
Basket of household goods have increased
Reduction in disposable income
More property owner depending on social grants
Business requesting more relief
Determination of ratios by CoGTA with immediate implementation
Reduction of Grants
Reduction of Business ratio to 1:2

9. Draft Rates Policy 2018/2019
Proposed change in the draft Rates Policy for 2018/2019
Aligning the structure of the Rates Policy to CoGTA Gauteng requirement
Rewording the sections of the Rates Policy to read correctly.
Replacing outdated legislation with current legislation
Aligning the Rates Policy with other City Policies
Creation of new property categories
Adding new definitions in line with Property Rates amendment act
Alignment of categories of properties and categories of ownership to remove the confusion that currently exists
Amending the requirements for sectional title properties to qualify for the appropriate rebates.

10. Categories , Ratios and Rates
Business & Commercial
AD2
1729
PBO 30
RESI 2
Consent Use
Normal 33
Education
1044 44
Farming 27
Mining 68 3
Multiple Purpose
271 1
Multiple Purpose Business 7
Multiple Purpose Residential 23
Municipal 39
6215
Municipal: Not Rateable 4
Private Open Space
819
167
Public Benefit Organisations 54
Public Service Infrastructure
6158
3502
Public Service Infrastructure Private
1286
152
Religious
1380
Religious purposes
Residential
524559
10996

11. Categories , Ratios and Rates
Residential
PBO
191
Residential: A
Normal 50
Sectional Title 11
AD2 1
Sectional Title Business
8716 32
RESI
5443
Sectional Title Other
8295
Sectional Title Residential
199331
1762
State
928
330 5
Vacant Land
33526
7888 10
Total
861623

12. Dates and Venues Venue Region Date Time
Orlando East Community Hall Soweto D
27/01/18
14:00-16:00
Dhlamini Hall Koma Road
10:00-12:00
Protea Glen Library Milk hood Street Ext 2 Soweto
03/02/18
Hillbrow Recreational Centre F
29/01/18
18:00-20:00
Mondeor Recreation Centre
30/01/18
19:00-21:00
Eureka House 92 Marlborough Road
31/01/18
Ennerdale Civic Centre Corner Katz and Smith Street
Extension G
01/02/18
Eldorado Don Matteman Hall
05/02/18
Lenasia Civic Centre No 1 Rose Avenue, Lenasia Ext 1
15/02/18
Orange Farm Multi-purpose Hall, Extension 4
08/02/18
Ivory Park North Hall, Midrand A
12/02/18
Midrand Fire Station
14/02/18
Diepsloot Youth Hall, Main Road ,Diepsloot
Marks Park Pavilion Hall B
19/02/18

13. Dates and Venues Dannie Van Zyl Recreation Centre, Claremont B
24/02/18
10:00-12:00
Jabula Recreation Centre Cnr Anne Street & Athlone Avenue, E
21/02/18
18:00-20:00
East Bank Hall ,Cnr Springbok & Impala Str
10/02/18
Ernest Ullman Park Recreation Centre, No 1 Alna Street, Gallo Manor
26/02/18
Cosmo City MPCC ,Angola Drive, Cosmo City C
27/02/18
Roodepoort City Hall
28/02/18
Braamfischerville MPCC, Loerieblaar Ave ,Braamfischerville
14:00-16:00

14. STAKEHOLDERS Internal Stakeholder Relations: Councillor’s briefing
All COJ staff (including MEs)
COJ message
Group Finance message
Letter to Head of CRUM informing of public meetings in regions
External:
Presentations to be done to the following external stakeholders:
Business Forum
JAA (Conveyancing attorneys, Johannesburg Attorneys Association)
SAPOA
NAMA
Key and VIP account holders (including Government, i.e. education, human settlement, etc.)
SMS campaign to all customers – sms will go out per region

15. COMMUNICATIONS – MEDIA & PR
External:
Press releases – to be issued
Series of follow up articles will be done (regionally) – will include issues addressed last year
Letter to each editor of Caxtons informing and inviting them to meetings
Interviews to be arranged with various radio stations ahead of public meetings
Social media (Facebook and twitter messages)
IVR message
Statement message
Website (all information to be placed on website)

16. COMMUNICATIONS
Internal GroupFin Newsletter – to be ed to all staff
Posters to be put up in all Customer Service Centres
Pamphlets to be placed in all Customer Service Centers
Newspaper ads in all Caxton (regional) and daily newspapers
Radio live reads
Electronic media pack (to be ed to journalists)
Public meeting dates schedule (1st round) placed on website
MMS campaign (3-4 days to be send before meetings starts)

17. Email your comments to: ratescomments@joburg. org
your comments to: Questions and Discussion Thank you