Councillor clarifies UIP process

The idea to form Urban Improvement Precincts (UIPs) to combat crime in Toti is not a new one and the right structures need to first be put in place before application.

Ward 97 councillor, Andre Beetge said a UIP is now known as a Special Rating Area (SRA) after legislation was changed in 2006.

“It is one of the options to address area upliftment, not excluding the eradication of crime by means of private-funded initiatives, in addition to existing municipal services and other official services.

It is one of the options to address area upliftment

It is not a new topic, but something pondered upon by Sapphire Coast Tourism, CCPO, private security companies and myself for more than three years. Given its complex nature, initiatives towards a ‘value for money’ mindset already started with the public-funded installation of spotlights and cameras along Beach Road, with it being the first agreed area in relation to crime statistics and manageability,” said Cllr Beetge.

On application to the planning and development unit in terms of the eThekwini Municipality Special Rating Area policy, the municipality may establish a SRA and levy an additional rate on property in that area to raise funds for maintaining, improving or upgrading that area.

However, Beetge said the following steps need to be followed first:

1. An application must be preceded by a public meeting.
2. The purpose of the public meeting would be for the applicant to consult with owners within the proposed SRA with regards to proposed boundaries and proposed area improvements or upgrading.
3. Prior to the public meeting, the applicant must give notice by pre-paid registered post, hand delivery (with proof of receipt) or in any other manner approved by the Chief Financial Officer (CFO) to all owners of rateable properties within the proposed boundary.
4. The notice must convey the applicant’s intention to apply for the establishment of a SRA, and must include the purpose of the meeting; details of where and when it is to be held; proposed boundaries and supplementary services; the proposed annual budget and additional property rates; a final date by which objections may be lodged; eThekwini Municipality’s address where proposals may be inspected and objections may be lodged.
5. A notice must be published in a newspaper circulating within the jurisdiction of the proposed SRA at least 10 working days before the meeting.
6. Every notice must state that written objections to the SRA’s establishment, or the provisions of the motivation report and implementation plan, may be lodged with eThekwini Municipality by a date specified in the notice.
7. Any property owner who will be liable for paying the additional rate may submit a written objection which has to be received by the municipality no later than 14 working days after the public meeting.
8. The public meeting must be held not less than 10 working days and not more than 30 working days after the notice, at the place, date and time as per the notice provided, which must be within the boundaries of the proposed SRA, unless the CFO approves another venue in writing before the public meeting is held.
9. A representative of eThekwini Municipality must attend.
10. Interested people at the public meeting must be furnished with all relevant information relating to the proposed SRA, including information to be set out in the motivation report and implementation plan and given opportunity to ask questions, express their views and make representation.
11. The application, including the business and implementation plan, and all objections must be available for inspection at the municipal offices for the 14 working day period that objection may be lodged.

“Following compliance to the application and establishment requirements, the SRA management company must enter into a section 67 agreement with the municipality and approval for the establishment sought from council at the annual budget meeting – following which the municipality will levy the special rate against certain expectations,” said Cllr Beetge. “While the initiative has in principal been applied successfully in Umhlanga and Florida Road in Durban, my office is yet to be approached on the identification or establishment of a SRA locally.”

Ins and outs of establishing SRA

An SRA may be established once the following criteria have been fulfilled:

• Boundaries must be defined and all properties must be adjacent to each other.
• An SRA may contain not less than 200 properties, or the total value of the properties must exceed a value as determined by council.
• A non-profit company registered in terms of the Companies Act 71/2008 to manage the SRA.
• In order for the application to be considered, a sufficient number of property owners falling within the proposed boundaries must sign the form prescribed by the municipality to show that at least 66% of the number of owners and 51% of the value of property have voted in favour of the SRA’s establishment or in the case of ‘business and commercial’ properties, at least 51% of owners in number voted in favour of the establishment of the SRA – provided that residential owners will be zero rated in respect of the additional rate.
• The application must be accompanied by the non-profit company’s budget, business plan and implementation plan by no later than 31 August preceding the start of the new municipal financial year for which the application is made.