Special Rating Areas (SRAs)
Property owners wanting enhanced service delivery in their area have the opportunity to establish a special rating area through a partnership with the City of Cape Town. The SRA establishment process is done “at risk” as the City does not provide seed capital and cannot guarantee approval.
What is an SRA?
A SRA is a clearly defined geographical area in which property owners pay additional property rates to fund “top up” municipal services to improve or upgrade that specific area. SRAs can be commercial, industrial, residential or a combination of any of these and are known as Improvement Districts, City Improvement Districts, Business Improvement Districts, or Community Improvement Districts.
“Top up” services typically include:
- additional public safety;
- cleansing services;
- urban maintenance;
- upgrading of the environment; and
- social upliftment
Setting up an SRA
A SRA is always initiated by the community, and is run by the community for the benefit of the community. An SRA can be established in residential, business or industrial areas or in areas with a combination of any of the three.
Here are the steps to establish an SRA (Special Rating Area):
- Initiate Contact with SRA Authority:
- Property owners from the area must first schedule a meeting with the SRA authority before commencing the establishment process.
- Understanding SRA and Expectations:
- During the meeting, property owners will gain a comprehensive understanding of what an SRA entails and what will be expected from them throughout the establishment process.
- Define Proposed SRA Boundary:
- Determine and define the boundaries of the proposed SRA. This step involves specifying the geographical area that the SRA will cover.
- Community Consultation on Needs:
- Engage with the community to gather input on the specific needs and priorities for the area. This feedback will be crucial for the development of the SRA’s business plan.
- Compile Business Plan:
- Based on the community’s input, create a detailed business plan outlining how the identified needs will be addressed within the SRA.
- Public Meeting for Presentation of Business Plan:
- Organise a public meeting to present the business plan to the community. During this meeting, community members have the opportunity to ask questions and seek clarifications.
- Obtain Majority Consent from Property Owners:
- Secure written consent from property owners within the proposed SRA. For commercial areas, a majority percentage of over 50% is required, while residential areas require a majority of 60%.
- Submit Application to the City:
- Once the required percentage of property owners has given their consent, the steering committee can proceed to formally submit an application for the establishment of the SRA to the City.
Following these steps will facilitate the establishment of the SRA and ensure that the process is conducted in a transparent and community-engaged manner.
The application must be received by the 30th of September if it is to be considered for implementation on the 1st of July of the following year. Obtaining the required support does not guarantee Council approval.
Once we have received your application and verified that the application is valid, we open it up to a public participation process for any property owner wishing to object against the establishment of the SRA. Your steering committee is required to hold a second public meeting and give feedback to the community on any further developments relating to the SRA application and respond to community questions. The application with all the comments and objection is then submitted to Council for consideration.
Please see attached links below.