Millions of Pula slipping through GCC’s outdated rates roll
The Gaborone City Council (GCC) has revealed that at least 45,000 plots in various parts of the capital are not included in the valuation roll, the instrument the local authority uses to gauge how much rates property owners should pay.
While the GCC has failed to update the valuation roll since 2008, it also faces a cash crunch that earlier this month was estimated at a deficit of P47.3 million. The valuation roll currently used by the local authority contains 55,000 properties and dates back to 2008. Since then, the city has not only expanded but some existing plots have been subdivided while the Self Help Housing Agency (SHHA) areas have moved from certificate to title, meaning they are required to pay rates.
Government intends to cut the revenue support grant it gives to local authorities over the next few years, with the urban councils particularly affected.
For 2022-23, the total funds government will give out to the local authorities have been cut by nearly P200 million and projections provided recently indicate more reductions from next year going forward.
“The last valuation was done in 2008, which translates to 14 years without valuation,” said GCC spokesperson, Isaiah Morewagae in response to emailed enquiries. “However Article 24 of the Valuation and Rating regulations state that ‘the Council shall as soon as possible, but not less than once every five years, cause to be made, a general valuation of all properties within the Council area.’”
The Council intends to update its valuation roll, with Invitation to Tender documents due to be floated by the week ending November 11. Morewagae said certain areas of the city were not reflecting in the current valuation roll used by the Council.
“Most areas are not included in rating roll, even the covered areas were not fully done, and the objective of this exercise is to value all properties within Gaborone including Phakalane, Gaborone North and some in the old SHHA,” he told Mmegi.
“Most SHHA plots have been converted to title deeds from certificates and as such are now required by law to pay rates. Updating the valuation roll has become an urgency for the local authority as its scrambles to raise its own revenues, in light of declining government funding and rising needs among residents of the capital.
According to figures shared previously by City Mayor, Austin
Abraham, the Council’s recurrent budget for this financial year is P387 million down from P393 million last year, while the amount of funding required around the city is on the rise.
“Council has over time been faced with diminishing revenue base and this has proved to be compromising its ability to deliver goods and services,” Abraham said at the June full council sitting.
“The cost of providing services has been constantly increasing over the years due to the effects of inflation, increasing cost of production and increased demand for goods and services as well as the effects of COVID-19.”
Part of the Council’s challenges also come from weak collection of rates from property owners already on the valuation roll.
The challenges have forced local authority to priorities areas for spending this year, which include facilities maintenance, street lighting, roads maintenance, vegetation control, destitute persons relief, payment of utilities such as electricity, procurement of schools stationary and others.
“Once again, I appeal to plot owners and all those owing Council to settle their bills for Council to continue with service delivery,” Abraham said at the local authority’s most recent sitting earlier this month.