Contact Us.

Do property owners have a say in a CID?

Yes, all property owners can participate in the affairs of the CID, but only members can vote at Members Meetings (e.g. AGM). Every property owner within the CID should apply in writing to the CID Board for membership of the NPC.

Who can become a Member of the CID?

Property owners liable for the additional rate are not automatic members and can sign up for membership to allow them to vote on the affairs of the CID. Property owners who receive a rates rebate are exempt from the additional rate and cannot apply for membership.

Who monitors the finances?

A CID is governed by the Companies Act (71 of 2008), manages its own finances and appoints its own service providers, accountant and auditor. CIDs are required to submit audited financial statements to the City annually for review and presents it at their Annual General Meeting (AGM) for adoption by the members. In addition, monthly financial reports are submitted to the City to monitor and to ensure that expenditure is incurred according to the approved budget. All CIDs have to submit their Annual Report and Annual Financial Statements to the relevant Subcouncil and CID Branch, within three months of their AGM, for noting.

How is a CID funded?

A CID is funded from the additional rates paid by property owners within the boundary of the CID. It does not receive any grants or subsidies from the City, but does have the powers to raise additional income.

How are the CID additional rates calculated?

The CID confirms the properties within the boundaries of the CID, which is linked to the municipal valuations according to the most recent general valuation roll.

The CID annually prepares an overall budget for the year. This is based on the specific needs of the area as set out in the approved Business Plan. Individual contributions are then calculated by dividing the budget total according to the municipal valuations of each property, proportional to the total valuation of the CID.

The CID Policy allows for a differentiation in tariffs for the different types of properties – be it residential, commercial or industrial.

This tariff is then expressed as a rate in the rand and is applicable over a financial year, which starts on 1 July.

The CID budget and proposed tariff have to be approved by Council, and advertised for comments and objections as part of the City’s budget process prior to implementation on 1 July.

How does the CID set its budget?

The CID sets its own budget according to input from its members as per the approved five-year Business Plan. Each year, the CID board has to submit a detailed budget to the City by 31 January. The proposed budget may not deviate materially from the approved business plan and must have been approved by the members at the last AGM. If there is a material deviation, an application in terms of Section 26 of the CID By-Law is required. The City evaluates the proposed budget for affordability and sustainability.

How are the CID additional rates collected?

The City collects the additional rates in the same manner as other property rates imposed by Council. The additional rate appears as a separate item (improvement district) on the monthly municipal account of each property owner liable to pay the CID additional rates within the CID.

How does the City resolve additional rates arrears?

Defaulters are subject to the City’s credit control and debt collection policies. As such, they can have their water and electricity services suspended or their clearance certificates withheld.

Is the payment of the additional rates mandatory for all properties within the CID?

Yes. Once Council has approved a CID, the participation of all property owners liable to pay the CID additional rates, within the boundaries of the CID, is mandatory. However, there are exceptions for those property owners who qualify for exemption.

What happens after the CID is approved?

After Council has approved the application, a Non-Profit Company (NPC) with members is set up by the Steering Committee who becomes the founding directors of the NPC. Within 6 months of setting up the NPC the first Members` Meeting is held to elect a board of directors. The NPC has to register for VAT, open a bank account and register as a supplier with the City and on the National Treasury Central Supplier Database (CSD). A Finance Agreement must then be concluded between the City and the NPC, which sets out the terms on which payments to the CID is made. This must all be in place before the City makes any payment to the CID. In the first year of operation, the NPC must submit an application to SARS for tax exemption.

Who manages the CID?

A CID is a NPC managed by a board elected by its members, and operated by a management team appointed by the board. The City is not involved in their day-to-day operations, but merely exercises oversight and legal compliance. A Councillor is appointed by the Executive Mayor to attend the CID Board meetings as an Observerfacilitating the City’s oversight of the NPC.