Special Rating Areas
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
SRAs in action
In Cape Town there are various types of Special Rating Areas which includes the following three types of Improvement Districts – City Improvement Districts, Business Improvement Districts and Community Improvement Districts.
Here are examples of Hout Bay’s SRAs in action:
- Mount Rhodes
- Oakwood Hughenden Meadows
- Scott Estate/Baviaanskloof
- For existing SRA business plans please search under our Agreements and contracts section in our document centre.
Setting up an SRA
A SRA is always initiated by the community, and is run by the community for the benefit of the community.
A SRA can be established in residential, business or industrial areas or in areas with a combination of any of the three.
Initiators should be property owners from the area and MUST first meet with us before starting the process. This will help you create a better understanding of what a SRA is and what will be expected of you when you start with the establishment process. The next step will be to define the boundary of the proposed SRA and consult with the community on what the needs are for the area, before compiling a business plan of how the needs will be addressed.
At a public meeting the business plan must be presented to the community where the community are allowed to ask questions. After this, you will need to obtain a majority percentage of property owners – over 50% for commercial areas, and 60% for areas classified as residential – to agree to the plan and give written consent, before your steering committee can submit an application to the City.
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 read our helpful FAQ sheet for more information on how SRAs work. We work strictly according to legislation detailed in the Special Rating Area By-law, Special Rating Amendment By-law, and Special Rating Areas Policy. Please read these documents in depth to ensure you have a proper understanding of the processes involved.