SRA Special Rating Area Proposal

Special Rating Area proposal for Botha’s Hill

How times have changed!

Present Day Botha’s Hill

                                                                                                   1.       An advertising jungle

                                                                                                   2.       Litter

                                                                                                   3.       Breakdown of services

                                                                                                   4.       Graffiti and Crime

Be responsible, say police

Police have urged motorists to be more vigilant and security conscious.

25 July 2012 |

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2.Not rated yet.

HILLCREST SAPS has warned car owners to take responsibility for their own safety.

Lt France Mkhize, Hillcrest SAPS spokesperson said the warning followed after  police noticed how some motorists parked their vehicles in isolated area, or parked outside premises with the doors unlocked.

"This escalates hijackings. The community is urged to be vigilant at all times and take responsibility for their own safety.  They must not make themselves vulnerable to potential criminals.  The police will always do their best to create a safe and secure environment, but the community is also urged to play their role in the prevention of crime, " Mkhize said.
Police have also urged motorists to fit their cars with a tracking device to assist the police in case of hijackings

This is far from the quaint rural village?

Objectives for a better Botha’s Hill

                                                                                        1.       Secure property values

                                                                                        2.       Ensure that Botha’s Hill’s environment remains conducive for business activity (tourism)

                                                                                        3.       Create an environment that is cleaner, greener and safer for public use

                                                                                        4.       Support the enforcement of by-laws

                                                                                        5.       Greening

The sustainable way to achieve these objectives is to:-

Create a Special Rating Area

What is an SRA?

A Special Rating Area (SRA) is a non-profit company in a defined geographic area within which property owners agree to pay for supplementary and       complimentary services set to enhance the physical and social environment of the area.

The services to be provided, which include safety and security together with improving the Botha’s Hill area, are defined in an Implementation Plan submitted to council together with a Business Plan and Budget.

A SRA makes an agreement with the municipality, according to a local by-law, for the municipality to collect a SRA levy, from the ratepayers in the area, over  and above the normal rates charges.

The money collected, unlike the rates, is a dedicated levy which can only be spent in the specific SRA area and is used to give “top up” services as per the agreed Business Plan.

Services provided by the SRA are supplementary to those provided by the Local Authority, which still continues to provide normal services.

The advantages of establishing a SRA

/ The cost of providing supplementary services will be borne by all property owners

/ Costs are borne in proportion to the value of the property

/ The Special Rating Area approach is holistic

/ The Special Rating Area creates a positive identity for the area

/ The Special Rating Area provides private sector management and accountability

/ The improvement of property values

/ To put forward ideas for change to council

The Botha’s Hill Special Rating Area, if accepted by Council, will be managed by a non-profit

Section 21 Company.

Members of the SRA and the Directors of the Section 21 Company will be property owners (or their representatives) within the SRA.

The Directors will receive no remuneration.

At least 66% of the property owners in the specified area must agree to the proposal

Area to be covered?

Where are we and what are the options being investigated?

   The process can take up to 6 months

   A committee has been formed

   We are gathering all needed information (the ground work is the most important for submission)

   Starting to engage with the relevant role players in the community

   Gathering ideas/recommendations

   Learning from other SRA’s

   Formulating a budget to manage the proposal

What are we investigating?

   Full time Manager

   Bicycle Patrols

   Vehicle patrols/motorbikes

   These Huts will be manned 24 Hours by trained Staff

   Walking patrols

Where do you fit in?

        1.      Be proactive (there will be resistance)

        2.      Provide us with the relevant information

        3.      Volunteer your time to get the SRA off the ground

        4.      Spread the news

How it works in Cape Town?

   Special Rating Areas - A Multitude of Benefits

   Article By Anna-Marie Smith 19 Aug 2011

   Property owners in a number of Cape Town suburbs have gained from the additional services made possible as a result of Special Rating Areas.

The city of Cape Town Special Rating Areas (SRAs) is the municipal facility of an additional rate levied on property, payable by owners in a defined area, to raise funds for the improvement or upgrading of such an area. It is a vehicle created to serve the purposes of upliftment, rejuvenation and sustainability when a collective of real estate owners are in agreement of such needs. SRA’s provide a formal structure through which to finance additional services, such as crime prevention in residential areas where contributions that were previously optional, result in non-payments, and lapsing of services as a result.

The product of SRA’s (previously known as Central Improvement Districts, CID’s) forms part of the City’s Integrated Development Plan, which in itself is obligated to fulfil the guidelines of its Rates Policy. The city has confirmed the benefits of long-term SRA’s to include increased property values and enhanced standards of living, and in 2010 was administering a total of 22 SRA’s. The SRA policy statement implemented by the city on 1 July 2011 states that the model is based on international best practice, aiming to prevent degeneration of cities and towns and the onset of urban decay.

The policy facilitates economic growth and sustainable development of areas to enhance and supplement municipal services already provided by the City. It is also aimed at further investment into areas where, through co-operation between the city and private business municipal services could serve to uplift degenerated areas and uplift distressed business and mixed-used areas that could slow residential property investment.

SRA’s have to submit five year business plan within the framework of Section 21 companies to be approved by the city, as well as annual budgets in terms of the SRA By-Law. Additional costs payable by property owners is usually where difficulties arise in obtaining agreement from a majority of residents in an area. The city requires written proof of a majority vote of 60% of the residential special rating area owners in approval of the application.

While most applications are successful, some do not succeed as was recently seen in the Far South residential suburb of Capri, where the required majority was not obtained due to the unaffordability of additional costs to be levied over and above existing monthly rates.

Individual SRA’s are unique in nature due to geographical settings, population density, zonings and property values. ‘Top up’ services provided by SRA’s have produced phenomenal improvements as seen throughout the city including Cape Town Central, Sea Point, Green Point, Claremont, Athlone, Muizenberg, and Fishhoek. Other areas where property owners have benefited from the implementation of detailed five year SRA business plans are Zwaanzwyk, Groote Schuur, Maitland and Zeekoevlei. A current SRA application under review by the city is for the Kommetjie geographical area located along the Atlantic Ocean Coast towards Cape Point.

The city says it remains obligated to sustain existing service levels after the establishment of an SRA, and by working closely with city officials’ additional services are determined.