A City Improvement District (CID) or commonly known as a Special Rating Area (SRA) refers to a geographically-defined area in which property owners contribute additional rates to fund top-up services for that specific area as per the approved Business Plan.

The terms CID and SRA essentially refer to the same thing. The City declares a Special Rating Area in terms of Section 22 of the Municipal Property Rates Act which then operates as a City Improvement District to improve and upgrade the area.

CID = sid (as in the first syllable of “Sydney”)

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 and vote in the CID`s affairs. The City is not involved in day-to-day operations, but exercises oversight in terms of administrative and fiscal governance as well as the services which are aligned with the City’s Integrated Development Plan, to ensure legislative compliance.

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. The CID Board is accountable to the community on how the budget is spent.

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 and vote in CID affairs.

Yes, anyone in the community can participate, but only registered NPC members may vote on CID matters.

Yes, eligible owners of property within the FCID area must apply to the CID Board to become a member of the NPC, and cannot be denied membership, provided they are not exempt from paying the additional rates.

Nothing. The Fresnaye CID’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 Fresnaye CID business. Apart from this, their services are offered on a purely voluntary basis.

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.

A CID (also referred to as a special rating area (“SRA”)) is merely a geographic area, designated by the City for purposes of levying the additional rate, which funds improvements and upgrades of that area. Once the CID (or SRA) is determined by Council, the City’s SRA By-law & Policy require – (1) the establishment of a non-profit company (“NPC”) to carry out the proposed improvements and upgrades; and (2) that registered owners of property who are liable to pay the additional rate be entitled to membership of the NPC (NPCs have members; not shareholders).

The NPC requirement essentially functions as an additional check & balance; to ensure proper governance in the spending of what is essentially taxpayers’ money. The procedural requirement that relevant property owners apply for membership is therefore a requirement of the Companies Act.

When we receive your application, we verify your entitlement to membership against the property register obtained from the CoCT. No membership or application fees are payable and members do not incur any liability for the obligations of the FCID NPC . Membership allows you to vote on how the management body (the FCID NPC) should implement and manage the FCID. Other interested and affected parties who are not eligible for membership (e.g. property owners who are exempt from paying the additional rate or tenants) are more than welcome to attend and participate in FCID NPC members’ meetings, but are not entitled to vote on any resolutions.

A CID provides a clear, well-tested way to boost municipal services by channelling 100% of the additional money raised back into the neighbourhood.

As much as we all want our rand to stretch further, the reality is that we already supplement existing government provided infrastructure and services e.g. private security, medical services, and schooling.

Unless we work together as a community and introduce the CID, we won’t be able to effectively implement the changes that we need.