A City Improvement District (CID) or commonly known as a Special Rating Area (SRA) refers to a geographically-
The terms CID and SRA essentially refer to the same thing. The bylaw that enables CIDs to exist is called the SRA bylaw. The area that is described, and the classification requested for it are both also called the Special Rating Area (SRA). After the City approves the SRA, the term is hardly ever used, but is supplanted by the name City Improvement District (CID). This generalised explanation is true for our NCID.
CID = sid (as in the first syllable of “Sydney”) NCID = ensid
Typically, these would be services dealing with Urban Management issues like additional public safety measures, cleansing services, maintenance of infrastructure, upgrading of the environment, and Social Services issues like safety and security, vagrants etc.
By pooling their resources in an SRA, individual property owners can enjoy the collective benefits of a well managed area, a shared sense of communal pride, safety and social responsibility, and access to joint initiatives such as waste recycling, energy efficiency programs, etc. In the end, these all translate into a tangible boost in property values and capital investments.
An SRA is always initiated by a community, and not by the City. It usually starts with ‘champions’ within a community who feel the necessity to improve the environment within a defined area. – A steering committee is formed. – The steering committee does a needs analysis (a survey was conducted in Northpine), and from this they compile a five year business plan (including the motivation report, the implementation plan and a budget) indicating how the improvements are to be achieved, and present this to the community at a public meeting. – Thereafter property owners are lobbied for their support where a majority (more than 60% for an area classified as residential) has to give written consent to the formation of a SRA. – DONE Once this has been obtained, the steering group has to submit an application to the City. This needs to happen by the end September 2016. – The application is then advertised in the media and property owners are also notified to allow them to render any comments or objections. – The City then considers the application with the objections at a full sitting of Council. – After the City has approved the application, a non-profit company (NPC) is set up and a board is elected. – The NPC has to register for VAT, open a bank account and be registered as a vendor with the City, etc. This must all be in place before the City bills the property owners and pays over the levies to the SRA. – Northpine CID NPC is registered; bank account has been opened; City vendor registration is complete.
A CID is a non-profit company (NPC) managed by a board elected by its members, and operated by a management team appointed by the board. Property owners must sign up for NPC membership to allow them to participate in the CID`s affairs. The City is not involved in their day to day operations, but merely exercises financial oversight and legal compliance monitoring.
A CID is governed by the Companies Act (71 of 2008) and manages its own finances and appoints its own auditors. The audited financial statements (AFS) form part of the City’s consolidated accounts, which are reviewed by the Auditor-General. In addition, monthly financial reports are submitted to the City to monitor and to ensure that expenditure is incurred according to the budget. All CIDs have to submit the Chairman`s report and AFS to the relevant Sub-council, within two months of their AGM, for noting.
A CID is funded from the additional rates paid by property owners within the boundary of the SRA. It does not receive any grants or subsidies from the City, but does have the powers to raise additional income.
Yes. Once the City has approved an SRA, the participation of all property owners liable to pay the SRA additional rates, within the boundaries of the SRA, is mandatory. However, there are exceptions in terms of relief.
The following categories of owners / properties will be 100% exempted as per the SRA Policy: Indigent, Senior Citizens and Disabled Persons who meet the criteria for rates relief Properties registered in the name of and used primarily as a place of worship, Council owned properties used predominantly for official municipal business, Other properties that qualify for rates relief/exemption as per the City’s Rates Policy
No, it is ring fenced to be paid exclusively to the CID. It is not shared with other communities, departments or organisations.
Absolutely! Every property owner within the SRA should apply in writing to the CID Board for membership of the NPC. Only then are they able to participate in CID affairs.
No. Membership of the NPC is open primarily to the property owners of Northpine. However, the property owner may assign proxy to a tenant (for instance) by way of a proxy letter, that will enable the elected person to represent the respective property owner.
1. In order to qualify for membership, the property owner must be in good standing with regards to her rates account with the City. Rates payments must be up to date.
2. Presently, property owners who are exempted from paying rates are precluded from becoming a member. However, that may change in the future
A detailed account of the implementation plan can be downloaded from the document section of this web site. However, in a nutshell, the Northpine CID will:
1. Establish an operations office
2. Appoint a manager and assistant
3. Appoint a security company to do 24 hour safety patrolling and monitoring in the area
4. Implement cleaning and greening projects Initial efforts will favour mainly safety and security. As this aspect of the operations begins to show results, balance will shift to other delivery areas. For a complete picture, see the documents available in the Docs section.
Nothing. The NCID’s Memorandum of Incorporation (MOI) strictly prohibits its directors and board members from being paid for their services. In exceptional circumstances a director or board member may request reimbursement for personal expenses incurred in the process of executing NCID business. Apart from this, their services are offered on a purely voluntary basis.
“During the tender period for security services, I have noticed activities by security companies that seemed suspicious. Like higher visibility, more sign boards and moves to establish a local office. I suspect that the process is rigged!” The NCID cannot control what bidding companies do, as long as what they do does not transgress the strict conditions stipulated in the tender document. Apart from this, the NCID maintains a portfolio of evidence that provides an audit trail of all decisions made in the process up to and including the selection of the successful bidder.
Only the CID’s employees and service providers are paid. The employees are the CID Manager and the administrative assistant. The contracted security company is the most significant of its service providers.