All agricultural properties effectively categorised as residential.
On the 30th of May 2024 councillors attended a budget workshop in which we were taken through the main budget tables. All proposed changes to the advertised Draft Budget were discussed with councillors, who also provided their input.
Thereafter the budget was twice postponed until it served before council on the 13th of June 2024.
The Mayor presented the budget, without drawing the attention of councillors to significant changes that had been made behind closed doors.
One of these changes is patently unlawful and impacts all agricultural properties:
“Agriculture taken back to residential base rate for all. From 1 July applications MUST be submitted”
Despite the fact that section 8(d) of the Municipal Property Rates Act, provides that each municipality must have “agricultural properties” as part of its rates categorisation, with effect from 30 June 2024, Knysna effectively has no properties categorised as “agricultural” for rates purposes.
Each and every owner of an agricultural property will have to apply again for the property to be categorised as “agricultural”.
This is illegal, as the categorisation of each property is included in the valuation roll, and the only lawful way to change the categorisation is by including the property in the supplementary valuation roll. This may only be done if the category has changed. Each owner has to be informed and has to have an opportunity to object. The municipal valuer makes the final decision.
Council today disregarded the valuation roll and unlawfully usurped the function of the municipal valuer.
The budget therefore is compromised, as the municipality relies on the additional R6.6 million it anticipates to receive from the unlawful categorisation of all agricultural properties as “residential”. Owners of agricultural properties will no doubt apply to be re-categorised as “agricultural”, and other than an administrative nightmare, this will result in a significant budget shortfall.
The budget includes the paltry sum of R100 000 for Knysna Animal Welfare, an absolute disgrace, considering that this organisation has not received a cent from the municipality since 2020.
The ANC, EFF, PA and PBI also showed a complete disregard for the environment, by increasing the rates on Private Open Space properties by 100%.
We trust that Provincial and National Treasury will reject the budget and ensure that the municipality follows lawful processes when effecting changes to the valuation roll.
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