Property valuations will be abused to increase income for the council from property rates
11 June 2018
It is easy to understand the concern that the new Cape Town property valuations will be abused to increase income for the council from property rates.
Government grants to local authorities have been reduced and income from the sale of water and electricity is down because people have found ways to use less power and water so we do have a city hungry for more revenue from property rates.
The real problem, however, is the high cost of running the city. That includes a dozen years of above inflation salary increases. The fix is to reduce administrative costs and not to bleed property owners dry.
The problem of high pay for bureaucrats is not confined to the municipalities but to the whole public service and State owned enterprises like Eskom. Ironically, Eskom has been the first to make a stand against ever increasing-salaries with a decision for zero increases for next year. Municipalities should follow Eskom’s example.