Residential rates and rebates

The first R15 000 value of all residential properties is legislatively impermissible for charging property rates, and a further valuation reduction of R135 000 is granted by Council for charging property rates. All residential properties are thus not charged any property rates on the first R150 000 of the value and registered indigents pay no property rates. Furthermore, the social package will be extended to all properties valued at R150 000 and lower.

Rebates for pensioners, people living with disabilities and/or medically boarded persons are also granted, subject to the criteria set in the Rates Policy.

Rebate on the total market value of all unregistered erven in a township

Incentive description

This incentive is for the purpose of levying property rates on a category of “Township Development” instead of “Vacant”.

When a developer proclaims a township, an entry is opened in the valuation roll that contains all the unregistered erven (the properties still belong to the developer). There will be a rebate on the total market value applicable for the entry in the valuation roll; the category will be “Township Development” and the rate will be lower than for the “Vacant” category.

Qualifying criteria

This includes all proclaimed townships of which the unregistered erven still belong to the developer, excluding those portions in respect of which a certificate of registered title has been issued by the Deeds Office.

Application procedure

As soon as the township has been proclaimed and registered in the Deeds Office and upon receiving the conditions of establishment, the process of valuation will commence.

 

Spatial planning

Offsetting development charges on multiple townships

Incentive description

Where a developer has offered to provide and construct bulk engineering services that will serve multiple townships owned by the same developer, offsetting of engineering services contributions may be done for multiple townships instead of on a township-by-township basis, provided there is a causal link between the service and the townships that are being developed.

The objective of the service is for developers to be able to develop within a municipal infrastructure zone or precinct for the purposes of investment and to be able to connect to bulk engineering services that are constructed for the purposes of these townships.

Qualifying criteria

Developers that are developing multiple developments within the same municipal infrastructure zone or precinct may qualify.

The townships must be developed by the same developer, and the developer must offer to build or construct the bulk engineering services. The offer and the terms of the offsetting must be captured in an overarching engineering services agreement (and individual agreements for the townships) and form part of the conditions of establishment for the townships.

Application procedure

The townships must be developed by the same developer, and the developer must offer to build or construct the bulk engineering services. The offer and the terms of the offsetting must be captured in an overarching engineering services agreement (and individual agreements for the townships) and form part of the conditions of establishment for the townships.

 

Water and sanitation

Bulk service contribution rebate scheme

Incentive description

A 10% rebate on water and sanitation bulk service contributions entails the provision of rebates on bulk service contributions for water and sanitation in respect of all land use applications, such as rezoning, township establishments and consent use.

Qualifying criteria

To qualify for the rebate scheme, the development must be approved in accordance with the following process:

·         Approved conditions of establishment.

·         The application is received and assessed for availability of bulk services to accommodate the proposed development.

·         If bulk services are available, the conditions of establishment will be approved.

·         Upon approval of the conditions of establishment, bulk service contributions are calculated and incorporated into the service-level agreement.

Application procedure

·         Submission of application for development in line with the above-mentioned qualifying conditions.

·         Time frame: 60 days to draft the service-level agreement, from the time of receiving the service report with the approved conditions of establishment.

·         Possible fast-tracking and prioritisation for approved strategic investments.

 

Electricity and energy

Bulk service contribution rebate scheme

Incentive description

·         The bulk service contribution is calculated on the relevant connecting point on the network. The contribution covers the network preceding the connection point in accordance with the applicable tariffs.

·         Developers contribute according to the load impact of their development.

·         The bulk levying policy is pro-developer.

·         The developer can install external services and obtain 100% offset of this cost from the bulk contribution payable.

·         The developer can control the timing of its township development.

·         The developer benefits from the reimbursement medium-voltage refund factor for the installation of internal services and pays half of the shared network cost of a township.

·         Consideration of the socio-economic conditions for residential development (after diversity maximum demand) is possible, based on the location of the development.

·         The developer benefits from installing a more cost-effective network and saves paying a full quota charge per erf.

·         Application of the reimbursement medium-voltage refund factor for the installation of internal services contributes to half the shared network cost of a township and the bulk service contribution for residential developments is subject to a quota charge calculation based on after-diversity maximum demand.

Qualifying criteria

All new township developments are subject to the successful conclusion of a service agreement with the relevant department.

Application procedure

Once the conditions of establishment of the township are approved, the developer or a duly appointed electrical engineer can request access to the incentive.

 

Events

Destination events incentive: Hosting

Incentive description

This incentive entails providing and securing appropriate and relevant City services on behalf of the event organiser as well as financing select services in line with the City’s policy on marketing and events.

Once a partnership agreement between the event organiser and the City is signed, the City will assist with securing and financing City services, such as metro police services, emergency services, bus services and waste management services. Waste management services are only incentivised for events that are held at City-owned venues.

Qualifying criteria

To qualify for this incentive and service offering, the event must be approved in accordance with the following process:

·         The event must demonstrate a measurable socio-economic impact.

·         The event must take place in a City-owned venue to qualify for incentivised waste management services.

·         The event must be approved by the Joint Operations Committee (JOC) before the incentive and services can be granted.

Application procedure

·         The process commences with the event organiser submitting a proposal to the Communication, Marketing and Events Department.

·         The proposal is evaluated in line with the City’s policy on marketing and events.

·         Feedback is provided within 7 to 30 days to the event organiser as to whether the proposal has been approved or declined.