Background
Since 1994, central government and local authorities have adjusted the utilization of capital and revenue by appropriately prioritizing the provision of basic services to poor and disadvantaged communities. A consequence of this has been that in most towns and cities a lower proportion of available municipal rates revenue has been utilized for the provision of services to developed areas, than was previously the case.
The SRA By-Law provides for an additional rate to be levied on property owners within a Special Rates Area in respect of a predominantly residential area if a majority of at least 60% of property owners in the intended SRA have consented to the establishment of an SRA for their area. Unlike the revenue collected from traditional rates and taxes, the SRA levy is ring-fenced specifically for improving services exclusively within the Special Rates Area in which the SRA levy is paid. The SRA levy is collected by the municipality and disbursed to a non-profit company which manages the SRA with a mandate to enhance and supplement the provision of municipal and other public services in accordance with a business plan and budget approved by property owners and the municipality. The non-profit SRA Company is subject to audit and the municipality retains oversight of its affairs to ensure that it fulfils its approved mandate. Property owners in the SRA are eligible to be shareholders in the SRA Company and are entitled to vote at shareholder meetings.
MOTIVATION FOR A SPECIAL RATES AREA
It is an excellent proven vehicle for communities to drive the change they wish to see:
• The model is successful and is used widely across the Cape Peninsula (> 26 SRA’s)
• The model has been successfully used across a wide range of communities and is well adapted for commercial, residential, high income and low income precincts.
• The fund raising mechanism is effective and low cost (essentially bolted on to the municipality’s monthly billing system for free).
• The municipality remains responsible for debt collection and for bad debts.
• All funds raised through the levy are ring-fenced for use exclusively within the SRA area.
• The SRA Company is 100% in control of its budget and funds and appoints its own service providers.
• The SRA mechanism has strong checks & balances in place to protect the community
• The municipality checks on compliance by the SRA Company with its approved budget and business plan.
• The SRA Company’s accounts are audited annually.
• Property owners are eligible to be members/shareholders in the SRA Company and to appoint its board.
• The financial contributions of SRA property owners are scaled according to the municipal valuations of their property/ies (which should address a lot of people’s affordability concerns), but every property owner gets an equal vote.
• The SRA gives communities considerable leverage with service providers (SAPS, Law Enforcement, and municipal departments like cleansing, roads, electricity, etc).
• For the past number of years, priority has been given by the municipality to the provision of basic services in previously disadvantaged areas. Because of this, those of us in developed areas are aware that while we may wish for better service delivery, we will need to be more pro-active and will have to supplement the budget for service delivery in our areas.
A perception survey is required to establish community sentiment – key outcomes could be:
• Survey respondents are dissatisfied with municipal service delivery
• Safety and security, litter and cleanliness, maintenance of public spaces and social issues identified as key concerns.
• Respondents are prepared to pay an additional modest SRA levy.
This is the right thing for Greyton to do
• There is a strong indication that the community wants improved security, maintenance of public areas and better management of social services, and that they would be prepared to pay towards that.
• Crime is on the increase in our area and it is affecting our quality of life. For a relatively modest sum of money a properly constituted SRA can implement a safety and security plan in the public space.
• A managed safety and security plan in the public space should eliminate much of the criminal and anti-social activities in our community.
• 50% +1 vote in support of the SRA is required from property owners within the proposed SRA.
• The property owners must approve a 5 year business plan to which the SRA Company must adhere.
• The SRA budget is very modest and has been tailored to meet priorities and financial constraints expressed in the perception survey. It aims to achieve a lot for very little overhead cost.
• We have structured a business plan with low overhead costs. Unlike other SRA’s, we will propose to keep monthly overhead costs to a minimum by saving on the costs of premises, and keeping assets to the bare requirements.
• We can achieve this because we intend to secure the services of volunteers on a part time basis.
• We estimate that the monthly cost will be approximately R74 per month for every R1m in the municipal valuation of your property. If we all contribute, we will all benefit.
• Property owners will be fully informed via publicized public information meetings and the SRA website and will have adequate opportunity to vote on the proposal and lodge objections.
This is a once-off opportunity
TWK ByLaw Community Fire Safety