RATING VALUATION PROPOSAL

Background

As part of a comprehensive property rates administration optimisation, we propose to conduct a

property rating valuation of all zones covering rateable properties within your District. This is in
view of the identified difficulty of a lack of an updated valuation list of properties within your
District.

With reference to section 96(9) of the Local Government Act 462 of 1993, which gives the
guidelines and the appropriate methodologies for conducting a rating valuation, we will
undertake the exercise to capture and update the valuations list for the purposes of generating
revenue through property rates. Using qualified and accredited valuers and with reference to the
stipulated regulations from the statutory agencies, TRUSTWORK will provide the expertise and
the methodologies to produce a valuation list that will form the basis of a GIS-based Property
Rate Database Development.

Methodology

Determination of Rating Methodology

With the guidance of the relevant parts of Act 462, we will use the approved methodology which
will be validated by the Land Valuation Board. As stipulated by Section 96(9) of the Act, the
Depreciated Replacement Cost method will be the valuation method used to asses the rateable
values of the properties to be listed.

Preparation of Master Map

Using Modern Mapping Methods and GIS Tools, a Master Map or Frame of the area under
consideration will be produced to form the basis of the exercise. Such a Master Map will
determine the area extent of the District and the built up areas. The comprehensive overview
provided by such a Master Map will make it possible for valuers and planners to determine how
the subdivisions will be done in an efficient and cost effective manner. The master map will be
rendered in both hard and soft copies to make it possible to integrate it with other layers.

Divisional Plans
A divisional plan derived from the master map will be produced to create subdivisions of the
built-up areas. This will be done to group predominantly residential areas, high value residential
areas, commercial areas and developing areas. Such a frame will provide that basis for making a
prior decision of the areas to be considered priority areas for rating valuation to optimise
revenue. It will also be used as a basis for the organisation physical planning and re-demarcation.

For the valuation purposes the divisional plans will provide the working frameworks for drawing
the valuation list at the end of the exercise giving indications of the estimated numbers and
values of rate revenue to be mobilised from each division. This exercise will also be done using
cartographical and GIS tools. The main output will be neighbourhood maps covering the areas of
interest. Each division will be assigned a unique two digit code for identification and future use a
basis for analysis. Each division will form a valuation area with its unique characteristics.

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Preparation of Block Plans
Using the Divisional Plans as the base, each division will be subdivided into blocks using a grid
system. The grid could either be a geographic are coordinate grid with strict reference to streets
and boundaries of suburbs. The block plans will enable valuers and field workers to have
manageable sizes to work in during the creation of the valuation list. Each block would
tentatively have between 25-40 individual properties composing the block.

All the individual blocks will be presented contagiously and individually in a map with a scale
that will enable users to differentiate and make out clearly the individual rateable premises. The
use of vector data or imagery layers to make a geo-referenced frame. The block plan provides a
simplified reference for identifying rateable properties. Each property will be assigned a unique
for digit code for easy identification and tracking in drawing up the valuation list. In addition to
the four digits code house numbers will be used as and when it is available.

Valuation List
Using the identification and zoning information from the field, we will use valuation
mathematical models to generate rating list and rate .such a list will be informed by a
categorisation of properties based on certain benchmarks to inform the applicable rates to be
levied on each property. Some of the benchmarks to be considered in categorising properties
include:
Types of Building
Building materials used
Use of the Building (Commercial/Residential)
Valuation Area location

Logistics
Some of the logistics to be used in the preparation of the valuation list include the following:

Field Notebook
This will contain all the details of the property enumerated. Such details as the type of ownership
details, material used, constructional details, dimensions, roofing materials, Divisional Plan code,
Block Plan code, Property code, date of visit, property enumerator etc.

Property Record Sheet

This is created using a standardised form using the Land Valuation Board schedules. It is
designed in a specific way and it is completed by transcribing the exact information from the
field notebook. Every rateable property must have its own property record sheet. By using a GIS
based property all such information would be captured in softcopies to cut down on paperwork
and cost.

Valuation List
The valuation list will be a summary of all the property valued together with its payable rates
providing quick-at glance information for administrative purposes.

Training Manual

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Training manuals will be provided for all the participating personnel.

Budget
Budget is attached.

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