Newsletter
April 2026
The Valuation Roll – The Foundation of Revenue
A message from our sales and marketing manager
Over the past few months, we’ve spent a significant amount of time working inside municipalities, engaging with finance teams, reviewing data, and trying to understand where the real pressure points are.
And one thing has become very clear…
Most municipalities are focusing heavily on debt collection — but the real issue often starts much earlier in the process.
It starts with the valuation roll.
Because if the valuation roll is not accurate, everything that follows is affected. Billing becomes inconsistent. Revenue becomes unreliable. And over time, the entire financial position of the municipality is built on information that simply doesn’t reflect reality.
We’ve seen municipalities aggressively trying to collect revenue that should never have been billed in the first place. At the same time, we’ve also seen large portions of legitimate revenue that are never billed at all.So before focusing on collection, the more important question becomes:Are we billing correctly?
IN FOCUS: THE VALUATION ROLL THE FOUNDATION OF REVENUE
Working closely with our professional valuer, PH Venter, we’ve been unpacking the role that valuation rolls play in municipal finance.
An accurate valuation roll is not just a compliance requirement — it is the foundation of a fair and sustainable revenue system.
When the roll is accurate, the tax burden is distributed fairly, and municipalities are able to plan and operate with confidence. But when inaccuracies exist, the impact is far more serious than most realise.
In many cases, valuation rolls are incomplete. Properties that should be included are missing, new developments are not captured, and structural changes are not reflected. The result is simple — if a property is not on the roll, it is not being billed, and that revenue is effectively lost.
In other instances, properties are significantly undervalued. This often happens when valuations are not updated regularly or when outdated market data is used. While this may not immediately raise concern, it slowly erodes the municipality’s revenue base over time, creating a gap that becomes increasingly difficult to recover.
On the other end of the spectrum, we also see properties that are overvalued or incorrectly included in the billing system. This creates a different kind of problem — one where revenue appears strong on paper but is never realised due to disputes, appeals, and resistance from property owners.
The Real Impact on Municipalities
What makes this particularly important is that these issues don’t exist in isolation.
An inaccurate valuation roll sets off a chain reaction. Billing inaccuracies lead to collection challenges. Collection challenges lead to growing debtor books. And growing debtor books place increasing pressure on cash flow and service delivery.
At that point, municipalities often respond by intensifying collection efforts, when in reality, the underlying issue lies in the quality of the data driving the billing process.
In simple terms, many municipalities are trying to fix a collection problem that is actually a data problem.
A Shift in Approach
From what we are seeing on the ground, there is a need for a shift in how revenue is approached.
Instead of starting with the question, “How do we collect more?”, the more effective starting point is to ask, “Are we billing correctly in the first place?”
When the valuation roll is accurate and aligned with actual property data, everything else begins to stabilise. Billing becomes more reliable, collections improve naturally, and revenue becomes more predictable and manageable.
If revenue is the engine of a municipality, then the valuation roll is what drives it.And when that foundation is not accurate, no amount of pressure on collections will resolve the problem.
LOOKING AHEAD: A BREAKTHROUGH IN MUNICIPAL DECISION-MAKING
Something is coming — and we believe it’s going to change the way municipalities operate.
For the first time, we are bringing together everything that typically slows municipalities down — legislation, policies, financial rules, and operational complexity — and turning it into something simple, accessible, and immediate.
We are in the final stages of developing an in-house artificial intelligence platform built specifically for local government.
Not adapted. Not generic.
Built from the ground up for municipalities.
Imagine being able to:
- Instantly understand how a decision impacts your revenue
- Navigate complex legislation without uncertainty
- Get clear, practical answers to real operational questions — in seconds
No more digging through policies.
No more uncertainty in interpretation.
No more delays in decision-making.
This is about giving municipalities clarity, confidence, and control — in real time.
We believe this will be a first-of-its-kind platform in South Africa, and a major step forward in how municipalities manage revenue, compliance, and financial decision-making.
Invitation to Be Part of Something New
We are opening this up to three forward-thinking municipalities to join us as pilot partners.
This is not just early access — this is an opportunity to be part of building something that will shape the future of municipal operations.
As a pilot municipality, you will:
- Work directly with us as the platform evolves
- Influence how it is built around real-world challenges
- Gain early access to a tool designed to give you a measurable advantage
This is for municipalities that want to move ahead — not catch up.
If you’re interested in being part of this, we would like to have that conversation with you.
Need Assistance With Municipal Finance?
- Annual Financial Statements
- Fixed Asset Registers
- Valuation Roll Management
- mSCOA Compliance