knysna municipality revenue enhancement project municipal managers forum... · 2017. 9. 1. ·...

KNYSNA MUNICIPALITYRevenue Enhancement Project

August 2017

PwC

Agenda

1. Simola General Valuation Roll Validation 1.1- 1.6

2. Simola Services Validation 1.7- 1.8

3. Sparrebosch and Pezula General Valuation Roll Validation 2.1- 2.8

4. Initial finds “Quick Wins” 3.1- 3.4

5. Summary of Results 4.1

6. Knysna Lifestyle Estate 5.1- 5.3

7. Knysna Lifestyle Estate Services Validation 5.4

8. Proposed Occupation Certificate 6

9. Implementation of Supplementary Valuation Notices 7

PwC

1.1 General Valuation Roll Validation- Simola Country Estate.

• Validated categories and valuations assigned to properties in Simola Country Estate.

• Identified 10 improved properties incorrectly categorized as vacant land.

• Identified 1 property where the valuation was incorrectly entered due to a clerical error.

• Identified 2 properties where the valuation appears to low.

• Identified 1 property where the use is incorrectly indicated as PSI.

• The affected properties were inspected and photographed on 18 July 2017.

• Occupation certificates was requested from Building Control for improved properties categorized as vacant land.

• 4 /1o Occupation certificates was received from Building Control as at 31/07/2017.

• 14 Interim forms requesting a review of category/valuation was submitted to the municipal valuer for inclusion in Supplementary Valuation Roll 1.

PwC

1.2 Simola Country Estate- Valuation Outcomes

ErfGV

CategoryValuation

Inspection

Category

Occupation

Certificate

Revised

Category

Revised

Valuation

Additional

RatesPhot0

9791 Vacant R2,500,000 Improved 06/10/2015 Improved R12,000,000 R48,051.48


9801 Improved R1,100,000 Improved n/a n/a R11,000,000 R63,200.12


9826 Vacant R1,500,000 Improved Not available Improved R9,500,000 R44,569.98

PwC

1.3 Simola Country Estate- Valuation Outcomes

ErfGV

CategoryValuation

Inspection

Category

Occupation

Certificate

Revised

Category

Revised

Valuation

Additional

Rates

13850 Vacant R1,200,000 Improved Not Available Improved R10,000,000 R52,230.78

PwC

1.4 Summary-Simola Country Estate.

• Received feedback for 6 of the 14 interim submissions.

• The Municipal valuer provided “insert and delete” memorandums for the respective properties.

• The increased rates, based on the revised category and/or valuation in respect of the 6 properties amounts to R325,048.82 for the 2017/18 financial year.

• The revised valuations and/or categories is subject to the objection process as provided for in subsection 54 of the Municipal Property Rates Act, Act 6 of 2004. The increased rates is to be implemented in August 2017.

PwC

1.5 Simola Country Estate- Awaiting Valuation Outcomes

ErfGV

CategoryValuation

Inspection

Category

Occupation

Certificate

Revised

Category

Revised

ValuationPhot0

9836 Vacant R1,000,000 ImprovedNotAvailable

AwaitOutcome

Await Outcome

9848 Vacant R1,300,000 ImprovedNot Available

AwaitOutcome

Await

Outcome

16716 Vacant R900,000 Improved 27/01/2016AwaitOutcome

Await Outcome

13859 Improved R5,900,000 Improved n/a n/aAwait Outcome

PwC

1.6 Simola Country Estate- Awaiting Valuation Outcomes

ErfGV

CategoryValuation

Inspection

Category

Occupation

Certificate

Revised

Category

Revised

ValuationPhot0

16483 Improved R4,000,000 Improved n/a n/aAwait Outcome

16527 PSI R1,000 POS n/aAwaitOutcome

Await

Outcome

9845 Vacant R1,000,000 Improved Not AvailableAwait Outcome

Await

Outcome

18846 Vacant R1,100,000 Improved Not AvailableAwait Outcome

Await

Outcome

PwC

1.7 Simola Estate- Services Validation

ErfCurrent

CategoryServices Levied Services not levied

16483Residential Improved

Refuse Water Basic, Sewerage

16522 VacantRefuse Availability, ElectricityAvailability

Water Availability, Sewer Availability

16699Residential Improved

Water Refuse, Sewerage

16710 VacantRefuse Availability, ElectricityAvailability

Water Availability, Sewer Availability

16716 Vacant Refuse Water Basic, Sewer Basic

* The above table represents preliminary services anomalies identified

PwC

1.8 Simola Estate- Services Confirmation

Confirmation of Services

PwC

2.1 General Valuation Roll Validation- Sparrebosch and PezulaEstate.

� Validated categories and valuations assigned to properties in Sparrebosch and Pezula Private Estate.

� Identified 18 improved properties incorrectly categorized as vacant land.

� Identified 2 vacant properties incorrectly categorized as improved.

� Identified 5 properties where the valuation appears to be incorrect.

� Identified 3 other anomalies in categorization.

� The affected properties were inspected and photographed on 20 and 21 July 2017 respectively.

� Occupation certificates were requested for improved properties categorized as vacant land.

� 14/18 Occupation certificates were received from Building Control as at 31/07/2017.

� 28 Interim forms requesting a review of category/valuation was submitted to the municipal valuer for inclusion in Supplementary Valuation Roll 1.

PwC

2.2 Sparrebosch-Valuation Outcomes

ErfGV

CategoryValuation

Inspection

Category

Occupation

Certificate

Revised

Category

Revised

Valuation

Additional

RatesPhot0

10895 Vacant R500,000 Improved 07/10/1999 Improved R1,400,000 R3,868.70

11074 Vacant R2,300,000 Improved 03/02/2010 Improved R2,800,000 -R13,233.36

11119 Vacant R550,000 Improved 14/04/2016 n/a R3,400,000 R16,017.33

11230 Improved R1,000,000 Vacant n/a Vacant R500,000 R696.72

11261 PSI R1,000 Vacant n/a Vacant R550,000 R7,660.18

PwC


ErfGV

CategoryValuation

Inspection

Category

Occupation

Certificate

Revised

Category

Revised

Valuation

Additional

RatesPhot0

12260 Improved R1,900,000 Improved n/a Improved R3,000,000 R7,022.24

12267 Improved R600,000 Vacant n/a Vacant R600,000 R4,875.30

12349 Vacant R610,000 Improved Not Available Improved R4,500,000 R22,145.79


12451 Vacant R530,000 Improved Not Available Improved R4,600,000 R23,956.53

PwC


ErfGV

CategoryValuation

Inspection

Category

Occupation

Certificate

Revised

Category

Revised

Valuation

Additional

RatesPhot0


12455 Improved R1,100,000 Improved n/a Improved R4,500,000 R21,705.09


12419 Res R100,000 POS n/a POS R100,000 R773.80

PwC

2.5 Summary :Sparrebosch Estate.

• 17 interim forms were submitted to the municipal valuer for revision.

• Received feedback for all 17 interim submissions.

• 15 of the 17 interim submissions were successful.


• The increased rates, based on the revised category and/or valuation in respect of the 6 properties referred to above, amounts to R178,368.95 for the 2017/18 financial year.


PwC

2.6 Pezula Private Estate- Valuation Outcomes

ErfGV

CategoryValuation

Inspection

Category

Occupation

Certificate

Revised

Category

Revised

Valuation

Additional

RatesPhot0

13280 Vacant R1,100,000 Improved 21/09/2016ResidentialImproved

R9,100,000 R47,355.90

13287 Vacant R1,500,000 Improved Not AvailableResidential Improved

R6,500,000 R23,677.38

13304 Vacant R1,500,000 Improved Not AvailableResidential Improved

R10,000,000 R48,052.08

13306 Vacant R900,000 Improved 11/05/2017Residential Improved

R9,000,000 R49,445.28

PwC

2.7 Pezula Private Estate- Awaiting Valuation Outcomes

ErfGV

CategoryValuation

Inspection

Category

Occupation

Certificate

Revised

Category

Revised

Valuation

Additional

RatesPhot0

13340 Vacant R700,000 Improved 12/03/2012ResidentialImproved

R5,000,000 R24,374.28

13357 Vacant R1,300,000 Improved 12/04/2013Residential Improved

R5,800,000 R21,588.24


R10,000,000 R21,586.98


R8,000,000 R41,088.18

PwC

2.8 Pezula Private Estate- Valuation Outcomes

ErfGV

CategoryValuation

Inspectio

n

Category

Occupatio

n

Certificate

Revised

Category

Revised

Valuation

Additional

RatesPhot0

13505 Vacant R800,000 Vacant 23/08/2016Residential Improved

R5,500,000 R26,463.48

• 11 interim forms were submitted to the municipal valuer for revision.� Received feedback for 9 of the 11 interim submissions. • The Municipal valuer provided “insert and delete” memorandums for the respective properties.• The increased rates, based on the revised category and/or valuation in respect of the 4 properties, amounts to R303,631.80 for the 2017/18 financial year.• The revised valuations and/or categories is subject to the objection process as provided for in subsection 54 of the Municipal Property Rates Act, Act 6 of 2004. The increased rates is to be implemented in August 2017.

PwC

3.1 Initial Findings- “Quick Wins”.

� The initial validation focussed on properties that drastically reduced in valuation and properties that was incorrectly categorized in Knysna Central.

� 6 anomalies were identified and verified during the initial assessment. Interim request forms was submitted to the municipal valuer for inclusion in Supplementary Valuation Roll 1.

PwC

3.2 Initial finds “quick-Wins” Valuation Outcomes

ErfGV

CategoryValuation

Inspection

Category

Occupation

Certificate

Revised

Category

Revised

Valuation

Additional

RatesPhot0

10915 Business R2,500,000 Business n/a n/a R25,000,000 R319,213.13

15269 Res Imp R30,000 Business n/a Business R1,540,000 R21,706.49

2897 Res Imp R1,700,000 Business n/a Business R1,700,000 R15,168.18

13720 Vacant R1,000,000Residential Improved

16/08/2013Residential

ImprovedR5,900,000 R26,463.36

PwC

3.3 Initial Findings- “Quick Wins”.

� Feedback for 4 of the 6 interim submissions was received by 31 July 2017.


• The increased rates, based on the revised category and/or valuation in respect of the 4 properties, amounts to R382,551.16 for the 2017/18 financial year.


PwC

3.4 Initial finds “quick-Wins” Awaiting Valuation Outcomes

ErfGV

CategoryValuation

Inspection

Category

Occupation

Certificate

Revised

Category

Revised

ValuationPhot0

4598State Owned

R600,000ResidentialImproved

n/aAwait Outcome

Await Outcome

8568Place of worship

R1,600,000 Educational n/aAwait Outcome

Await

Outcome

PwC

4. 1 Summary: Simola Country Estate, Sparrebosch, Pezula Estate and initial finds.

� 48 interim forms were submitted to the municipal valuer for revision.

� Feedback for 27 of the 48 interim submissions was received by 31 July 2017.

� 25 of the 27 interim valuation requests were successful.

� The successful interim requests resulted in an increase of R114, 860,000 in the total valuation base.

� The addition rates, based on the revised category and/or valuation, for the 2017/18 financial yearamounts to R1,189, 600.73 .

� The revised valuations and/or categories is subject to the objection process as provided for in subsection 54 of the Municipal Property Rates Act, Act 6 of 2004.

� The increased rates is to be implemented in August 2017.

PwC

5.1 General Valuation Roll Validation- Knysna Lifestyle Estate.

• Validated categories and valuations assigned to properties in Knysna Lifestyle Estate.

• Identified 17 improved properties categorized as vacant land

• 16 /17 Occupation certificates was received from Building Control as at 31/07/2017.

• Identified 23 properties registered at deeds office prior to May 2017 not reflected in the valuation roll.

• 16 of the 23 unregistered properties were found to be improved.

• 14/16 Occupation certificates could be provided.

• 7/14 Occupation certificates were issued prior to May 2017.

PwC

5.2 Knysna Lifestyle Estate- Interim Submissions

ErfGV

CategoryValuation

Inspection

Category

Occupation

Certificate

Revised

Category

Revised

ValuationPhot0

17866 Vacant R960,000 Improved 10/11/2015Await Outcome

Await Outcome


Await Outcome


Await Outcome


Await Outcome

*The above table represents 4/17 improved properties categorized as vacant land

PwC

5.3 Knysna Lifestyle Estate- Interim Submissions

ErfGV

CategoryValuation

Inspection

Category

Occupation

Certificate

Registration

DatePhot0

19655 n/a R0 Improved 21/10/2016 23/02/2016

19656 n/a R0 Improved 03/04/2017 10/08/2016

19669 n/a R0 Improved 02/09/2016 08/02/2016

19672 n/a R0 Improved 03/01/2017 19/07/2016

* The above table represents 4/23 registered properties not reflected in the valuation roll

PwC

5.4 Knysna Lifestyle Estate- Services Validation

ErfCurrent

CategoryServices Levied Services not levied

17899 VacantWater availability, Refuse Availability and Electricity Availability

Sewerage Availability

19680 Vacant No account (Property Improved)Water availability, Refuse Availability, Sewer Availability and Electricity Availability.

17867 Vacant No account

Water Availability, Refuse Availability, Sewer Availability and Electricity

Availability.

* The above table represents preliminary services anomalies identified

PwC

6. Proposed Occupation Certificate

KnysnaMunicipality Occupation Certificate Proposed Occupation Certificate

PwC

7. Section 49 Supplementary Valuation Notice

Supplementary Valuation Roll Notice

Thank you…

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knysna municipality revenue enhancement project municipal managers forum... · 2017. 9. 1. ·...

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