The City of Cape Town’s Council approved the establishment of the Little Mowbray and Rosebank Improvement District (LMRID) on Thursday, 28 April 2016. This is another example of the City’s drive to expand inclusive urban management practices based on partnerships with local communities.
New SRA for Cape Town metro
‘The LMRID will become the 35th Special Ratings Area (SRA) in the metro. Essentially, what characterises SRAs is the bottom-up and collaborative approach to urban management that is deployed. A community in a geographic area usually identifies which additional service needs are required for its area and these services are then paid for and managed by themselves.
‘This is how residents and local businesses take ownership of their communities in partnership with the City and is a key element in making sustainable progress possible,’ said the City’s Executive Deputy Mayor, Alderman Ian Neilson.
Special Rating Areas in Cape Town have been constituted in accordance with the Constitution of South Africa and all of the applicable national legislation and City policies.
The Steering Committee, which made the application, obtained 66,8% support from property owners for the proposed LMRID Business Plan and 6,7% objected to the establishment of the SRA. The support from the property owners is required as additional rates are levied on those who own property and who are not exempt from rates because they are indigent. This does, however, not dismiss the general views or needs expressed by the community at large.
Joint venture with community boosts services and security
‘The SRA concept has proven to be a good joint venture between Council and property owners or residents to improve local areas without Council having to neglect or shift its primary duties. SRAs have also proven to be successful in combatting crime and unlocking the investment potential of business districts,’ said Alderman Neilson.
The non-profit company that will be required to be registered to manage the SRA must operate in a transparent manner in accordance with the applicable legislation where good governance and sound fiscal controls are of paramount importance.
Background:
- Each SRA controls their own money (the additional rates collected) and sets their own budget
- The additional rates collected are ring-fenced for spending in a particular SRA, as per the approved business plan
- Each SRA can appoint its own service providers
- Property owners receiving any rates relief are exempt from contributing
- Contributions are capped
- Each SRA determines its own standard or service levels
- As it concerns public money, the spending and governance is monitored by the City
- The City collects the additional rates and transfers this to the relevant SRAs to ensure sustainability