Over the last few weeks, the City of Johannesburg has been contending with the results of a decision taken by National Government, particularly the Department of Cooperative Governance and Traditional Affairs (CoGTA) to amend the property categories in Section 8(2) of the Municipal Property Rates Act (MPRA).
Despite attempts to retain the education category, National CoGTA advised the City that it had to align with the amendments made.
Joburg was not the only municipality affected by these amendments.
In the 2021/22 Financial Year, several pre-schools, schools and other educational institutions – both public and private – were categorised by the City's Rates Policy (and in line with the then Section 8(2) categorisation) as "education".
It is vital to note that some had been historically categorised as "business and commercial" and are therefore not affected by the changes to Section 8(2) of the MPRA.
In the last month, the City of Johannesburg has been dealing with queries, complaints and court cases by stakeholders about the Section 8(2) amendments by National CoGTA.
During this time the Mayoral Committee and City, particularly the MMC for Finance and the Revenue Department as well as the Department of Legal and Contracts, have been working around the clock to find a workable solution that does not unduly penalise ratepayers or place the City on the wrong side of the law or Auditor-General.
My management team and I are insistent on being a caring City that is business-friendly. While we have had no choice but to comply with the amendments, we have been working hard to find a solution that creates a win-win for all in the short term while we address a long-term strategy, and we are confident that we have found a solution.
A Mayoral Committee report will advise Council that the rates for public and private schools, previously under the category “education”, will now increase by up to 5%, equal to the general rate increase. This will apply to bills levied from 1 July 2022.
The process and finer details are being worked on to ensure that the changes are executed seamlessly.
This solution has been created with a backdrop that once a municipal budget has been adopted, the Municipality and its residents are bound by law to adhere to what is adopted.
The City of Johannesburg's Legal and Contracts Department has requested a meeting with the legal counsel of the parties who have brought action against the City to put the proposal on the table for their clients to consider.
The City hopes that in reaching out with a win-win solution, an end can be brought to the matter, along with a commitment from the City to address the issue more permanently in the next fiscal year. The City of Johannesburg is committed to the Mayoral priorities, which are:
1. Getting the basics right
2. A safe and secure City
3. A caring City
4. A business-friendly City
5. An inclusive City
6. A well-run City
7. A smart City
We have been at the helm of this administration for almost nine months. In that time, we have found that a lot has been broken, not maintained, and so not working. All of this has an impact on our residents. We have never denied those things that need attention.
Still, my commitment to the residents of Johannesburg remains the same - we will take ownership, not because we created the mess, but because we care. Our residents have the right to the truth. We are preparing a report, which will be made public, for residents about the work we have done since taking office.
All will see what has been achieved in the short time we have been in office and what we have done as part of our Golden Repair commitment.
Finally, I extend appreciation and thank our patient residents, who support us to succeed.
ENDS
For media queries, please contact:
Mabine Seabe
Director: Mayoral Communication
Private Office of the Executive Mayor
084 677 7851
Michelle Ashburner
Deputy Director: Communication and Stakeholder Management
Office of the MMC of Finance
078 800 3643
22/08/2022
