RESIDENTS: YOUR QUESTIONS ANSWERED


I pay about R 8,000 per month rates and taxes in Camps Bay of which I can see very little is spent in my neighbourhood. I support the local neighbourhood watch groups and private security companies as we cannot rely on the police. Now we are being asked to pay additional rates for a CID to do what the City of Cape Town should already be doing with our rates and taxes in the first place. How can this be justified?

This answer is provided by Chris Willemse, Chair of the Camps Bay & Clifton Ratepayers Association:

CID is the acronym for a City Improvement District, which is a legislated entity whereby the residents of a demarcated area (Camps Bay, in this case) agree to a percentage increase on their rates and where that full amount so levied, is used by that community to bolster services to actively fight, mainly, crime and grime. In other words, the CID could use the money to increase the number of policing members and cleansing staff.

The CID regulations derive its authority from national legislation and the process is driven by a volunteer steering committee – in this case by representatives of current civic bodies in the area.

You ask a valid question as to why, given our already high rates bill in the area, we should have to pay more.

Unfortunately, the answer is that we will receive no more services than at present and that if we don’t help ourselves, then nobody will. This is not a defeatist attitude but a pragmatic one occasioned by a failing police force and the City which is at full stretch and also tied up in its own bureaucracy. The situation is unlikely to improve in the near future.

The Covid-19 pandemic also saw a massive increase in the number of homeless people being attracted to Camps Bay, which has also brought a lot of “day trippers” to the area to beg from the increased number of post-Covid tourists. Security on the beachfront has become a major issue of late, with brazen attacks on members of the public.

All of this points to the need for the community to galvanize itself and take responsibility for its own future. In a perfect world, this would be the responsibility of the various authorities but that remains a dream here, sadly.

There are many local civic organizations that are successfully dealing with the many problems facing the community but they remain underfunded and cannot achieve their full potential.

These organizations are run by volunteers and are, basically, unsustainable unless supported by the entire community. They include CBCSI (security) and Ignisive (the reintegration of homeless people), CBCRA (planning and general matters), CPF (liaison with SAPS) and CBW (Camps Bay Watch) and others.

The CID has to operate with the framework of the Company’s Act and transparent budgeting and expenditure is the order of the day. This presents an opportunity for residents to become actively involved in their own affairs. The CBCRA is fully supportive of the CID initiative, as it will involve the entire community and all income from increased rates will be ring fenced for the use in this area (and not into the City’s bloated bureaucracy). 

How much would the additional levy for home owners be per month?

The law provides a comprehensive framework for the establishment of a CID that, amongst other things, mandates a public participation process to determine the amount of the levy. In essence, the amount of the levy will be determined by the level of services that property owners and residents expect the proposed CID to provide. The steering committee will put together a business plan to provide the services the community expects it to provide and this budget will be covered by the increase in rates.

In order to understand what people expect, a survey has been sent to approximately 2,000 property owners and is also available for non-owner residents and tenants to complete.

Once results have been collated (this is currently underway), in accordance with the mandated process, a business plan will be drawn up for presentation to the community at a public meeting. The format and contents of the business plan is governed by the City and the plan will be subject to approval by the City.

Feedback from the owners and residents is then used to revise the plan before it is presented again at a second public meeting, whereafter property owners will vote whether or not to approve the CID.

The same process has been adopted across Cape Town and the average additional levy across all CIDs is around 17.5%. The Steering Committee is hoping that Camps Bay’s comparatively large rates base will enable us to achieve a result in the region of 15%, preferably lower. The upper limit for the additional levy that a CID is allowed to implement is 25%. There are very few that have set the rate that high, and all of those are very small in comparison to Camps Bay.

For the average property owner in Camps Bay, paying in the region of R5,000 in rates per month, this will translate into an additional levy in the region of R750 per month.

Note that if you are the owner of a sectional title property (such as an apartment or unit in a townhouse complex) then the levy will apply to all of your units. For example, if your garage and/or storeroom is a separate unit from your apartment then the levy will apply to the sum of the rates for all of the separate units.

Will the full levy amount be allocated to the CID by CoCT or do they take a cut?

100% of the levy is ring-fenced and allocated to the CID. Every month the City will pay over 97% of the amount theoretically owing, regardless of what is collected. At the end of every financial year, a reconciliation for bad debts is done, whereafter the 3% retained every month will be paid over after deduction of actual non-payments.

What options are there for people who cannot afford the extra levy?

In the first instance, the City offers a rebate scheme in cases of financial hardship. The Steering Committee is in the process of understanding the criteria for this, but can at least confirm that qualifying individuals will be rebated 100% of the CID levy.

The Steering Committee is also working on a second option for people who don’t qualify for the City’s rebate. It’s too early to give details of this, but the Committee is hopeful that this option will help also, and will share further details as soon as able.

Who will manage the CID program to ensure delivery rather than process?

All CIDs have the same governance structure, comprising a non-profit company with a board of directors (all of whom must be property owners in good standing with the City) that is responsible for the management of the CID.

In our case, all of the directors will serve pro bono in an oversight rather than operational or executive capacity.

Professional management will be employed to manage the day-to-day affairs of the CID. In due course it will be decided whether or not to employ additional employees and/or subcontractors in order to carry out the functions and services of the CID, in accordance with the business plan and the budget contained therein.

What percentage of the CID budget will be used to employ or contract CID management? eg will the steering committee be working as volunteers?

The current Steering Committee will become the inaugural Board of Directors if/when the CID is implemented, and will all work pro bono for the CID. Thereafter, directors will be re-elected annually (by members of the CID) in accordance with the City’s mandated processes.

In accordance with disclosures provided here, no member of the Steering Committee in any way currently derives nor in future expects or hopes to derive any financial or other benefit from the CID or the application process.

CID management and operations will either be employed or outsourced to suitably qualified professional service providers. The expected cost thereof is in process of being determined and will be set out clearly in the mandated business plan and budgets that will be presented to the community at the first public meeting.

How will the (financial) auditing of the CID be organized?

A firm of professional auditors will be employed for this purpose, selected in accordance with good governance principles.

Monthly management accounts will also be produced.

Cleaning: Chris and her team including CoCT are doing already an outstanding job so how would the cleaning of Camps Bay improve when the CID is there?

There are many areas within Camps Bay where volunteers are bearing all of the responsibility for services that the entire community should be providing.

Volunteer-driven activities are wonderful, but not sustainable nor fair when they depend on the hard work of only a few unpaid individuals. We have seen many such schemes fail when key individuals leave the community. These efforts would also be more effective if better coordinated and if they had access to administrative assistance and networks.

The CID’s primary role is therefore to make all such activities sustainable, continuing to use volunteers wherever possible, coordinating efforts, building institutional memory and relationships and providing additional resources so that the load is shared.

In addition, full-time managers and/or subcontractors employed by the CID would enable services to be expanded dramatically, for example by:

  • Proactive attention to all parks and public spaces in the neighbourhood, including the Little Glen and Big Glen (and of course the beachfront and commercial strip);
  • Graffiti removal, art upgrades and road marking repainting;
  • Dedicated law enforcement will be contracted to enforce the integrated waste management act to prevent illegal dumping and littering;
  • Social programs will aim to provide employment opportunities for homeless people currently living on the streets to further minimize street level waste; and
  • Subject to budget constraints and demand from property owners, there is also the possibility of additional days for refuse and recycling collection.
Vagrants & beggars: huge issue for Camps Bay but we always hear this problem cannot be solved effectively due to legal constraints, SAPS ineffectiveness, not aligned many different departments and vagrants not willing to move to shelters. How will a CID break through?

Camps Bay, especially the Beachfront, is a magnet for vagrants and beggars, especially during tourist season. Various government and municipal entities are tasked with managing the attendant problems of homelessness, vagrancy and crime – including Western Cape Provincial Social Development, SAPS, Law Enforcement and others.

The methods for dealing with vagrancy and homelessness are different depending on whether single individuals, families or children are involved. Each category has a different process stipulated by the authorities.

Navigating these processes requires significant collaboration and NGOs such as Ignisive are capable of building and maintaining the strong relationships required to deliver this collaboration. This has already been demonstrated.

Without the work that has already been done, Camps Bay’s vagrancy problem would be considerably worse than it currently is, and trying to stay on top of things requires continuous work.

A CID will provide a sustainable solution to this by funding the necessary collaboration and resources required to better coordinate and access existing programmes and implement new programmes for minimizing vagrancy and its effects. The extent to which this could be done is subject to the budget that the CID has available, but could for example include:

  • Funding projects such as the Community Stewards Programme (already implemented by Ignisive, but woefully under-funded) which selects vetted individuals from among Camps Bay’s homeless to work as official car guards, provide crime intelligence, help displace aggressive, disorganised car guarding, and offer a dignified transition to formal employment;
  • Expanding the Community Stewards Programme (longer hours, plus other locations where informal car guards operate);
  • Providing funding for Responsible Giving campaigns, working with restaurants and guest houses to minimise hand-outs to those on the streets;
  • Providing a dedicated liaison with SAPS and the City to ensure that Camps Bay issues are on the agenda and dealt with by these organisations.
  • Building a database of contacts in existing public and non-governmental organisations who can supplement the resources deployed in Camps Bay.

All of these will make a difference and will be provided for in the initial business plan. Moreover, the volunteer capacity for such initiatives simply doesn’t exist, and they won’t happen without a CID.

A CID will also pursue the allocation of dedicated social workers and law enforcement officers to Camps Bay, which, when managed properly, would expedite the removal of those who should not be on the streets.

Finally, a CID will fund a strong private security presence along the beachfront and elsewhere in order to discourage and minimize crime.

Taken together, Camps Bay will cease to be comfortable place for vagrants and petty criminals, resulting in a cleaner, safer, neighbourhood. All of this can only be done with financial resources that a CID can provide. There is no viable or sustainable alternative.

Security: it is evident in the statistics that the crime is on the rise in CB despite good work by private security companies and Watchcon. The ineffectiveness of SAPS, the lack of Law and order and the bigger country problems (social economic, unemployment, rapidly lowering ethical standards etc) are key drivers. How will CID improve this?

The CID will aim to deploy a dedicated team of security services, including a combination of foot officers, mobile response, control centre, law enforcement and  technology to holistically address all issues of crime. Some of this is already being done by CBCSI, but with nowhere near the level of resources and funding required.

The CID will coordinate with statutory bodies such as the CPF (Community Policing Forum) and CBW (Camps Bay Watch) to minimize overlap and maximize collective effectiveness. Existing CBW and CBCSI Telegram and WhatsApp groups will be integrated and/or rationalized to maximize effectiveness of “eyes and ears” and information sharing.

The focus will be on enforcing bylaws to inculcate a culture of law abidance. Existing CBW and CPF relationships with primary agencies such as SAPS and City law enforcement units will be converted from part-time (provided by volunteers) to full-time (provided by CID employees and/or sub-contractors) to better and more consistently hold SAPS and the City accountable for the services that they are meant to deliver.

The CID also intends to expand the camera network, incorporating additional key points in the neighbourhood (e.g. green belts known to be access routes for criminals) into existing monitoring systems.

Overall, the aim is to increase our capacity and resources for proactive prevention, monitoring and response. What we’re seeing in Camps Bay in part follows naturally from the success of neighbouring CIDs, which has caused a natural migration of crime to areas such as Camps Bay where fewer policing and response resources are available.

Unfortunately a CID cannot address the socio-economic problems that lead to crime, but it can and will mitigate and improve the management of the consequences and thereby improve the situation for residents and businesses on a daily basis.

Electricity supply: enormous corruption, unbelievable poor ethical standards, technical skill issues at Eskom driven. Can CID play any role in this to improve the power supply to CB?

Power supply is unfortunately a national problem, and CIDs are by law limited to dealing with local problems.

That said, the CID will of course explore all options within its remit in this regard, including proactive management of Eskom and the City for satisfactory maintenance of all electrical infrastructure in Camps Bay.

In the unlikely event that the establishment of alternative sources of power within the neighbourhood and for the neighbourhood is possible and economically feasible, then the CID would certainly pursue that.

Pollution of the oceans/impact on swimmers, surfers and beachgoers of direct sewerage lines straight into our bays. Requires enormous investments to get this right. How can the CID contribute to improvement?

Similarly to the electricity problem, this is an area where the CID will engage with the responsible primary agency to ensure that the relevant infrastructure is regularly and proactively maintained, and will be the primary mechanism by which the community holds such agencies to account for delivery of services in a manner that minimizes the negative health, etc effects of sewerage disposal.

Rapidly rising rates for home owners in Camps Bay. What can the CID do to ensure the CoCT stays reasonable?

Whilst a CID does not have any ability to influence the City’s property valuations or the level at which rates and taxes are set, a community approach to this issue might be facilitated through the CID and the Ratepayers Association. It is important to remember that none of us can determine where in the City our rates and taxes are spent, but all of the money collected via the CID will be spent in Camps Bay.

While the Steering Committee recognises that many property owners are unhappy with the valuations that they have received and therefore the rates that they must pay, it believes that it would be counter-productive to conflate this issue with all of the other pressing problems facing residents and property owners. The valuation issue should be pursued separately.

In other words, whether or not the City’s valuations process is fair does not change the need for us to take control of solving our neighbourhood’s problems with crime, vagrancy, cleansing, and so on.

Once established, will the CID continue in perpetuity? How are future budgets handled? And how can the CID be terminated in future if that is what residents want?

Once established, the CID will continue until it is dissolved. A business plan is submitted every 5 years in accordance with City of Cape Town procedures, subject to approval by members. (Any property owner within the boundaries of the CID, in good standing with the City, may become a member)

DISSOLUTION OF A SPECIAL RATING AREA 16. DISSOLUTION 

1.     The Council may dissolve a special rating area:

(a) upon written application signed by the majority of owners within the boundaries of the special rating area who are liable for paying the additional rate; or 

(b) after prior consultation by the CFO with the management body or the community, for any good cause, whereupon he or she may cause the management body to be wound up. 

(2) Upon the winding up of a management body, the entire net value of the management body, including its net assets remaining after the satisfaction of all its liabilities, shall be disposed of in terms of the relevant provisions of the Companies Act and the memorandum of incorporation of the management body.

We pay high rates in Camps Bay and see little benefit in terms of municipal services provided. Why should we have to pay more to get the services we should be getting already?

Our taxes subsidise municipal functions everywhere EXCEPT Camps Bay. Whilst ideally our taxes should be sufficient to keep Camps Bay at the standard we are used to, the reality is evident to anyone who goes to one of our parks or the beach.

At the moment, we benefit greatly from generous donations of money and time to security and cleanliness schemes from business and individuals, but it is not sustainable to rely on the same people indefinitely.

We will gravitate to the lowest common denominator if we rely on the State. Our town will be only as clean and as safe as any other township in the City. The small amount that will be added to our rates and spent directly in Camps Bay will preserve and enhance the value of our properties. It will replace many of the costs you currently have. Llandudno, Hout Bay and Clifton all have CIDs. That will push the crime and grime towards us and make it impossible for us to avoid the CID charge by moving anywhere else.

This is, in our view, the only option we have to preserve the value of our properties, responsibly address the social problems we have and put in place long-term programmes. It would be great if we could rely on the City to do all of this, but the reality is simply that we already rely on money and time invested by citizens and if we don’t formalise those systems, things will get a lot worse.

I understand that the CID will be incorporated as an NPC (Non Profit Company). Can it also be registered as PBO (Public Benefit Organisation), and will the levy on rates be S18A tax deductible?

The CID will be incorporated as a non-profit company (NPC) in accordance with City of Cape Town regulations and may also be registered as a PBO. We are awaiting finalisation of the City’s draft policy document on PBO status. The City has indicated that it has legal advice to the effect that the additional rates levies payable to the CID do not qualify for S18A deductions against ratepayers’ income tax.

Municipal property rates increases assume that council needs further funding to maintain infrastructure and services. Will the allocation of funds to the CID result in an adjustment to future property rates to account for self-funding by residents? If not, why not?

No, there won’t be any adjustment to future rates. The level of municipal rates is determined centrally according to a City-wide budget. In principle, CID contributions are for additional services that the City does not currently provide to Camps Bay, together with other services such as private security, cameras etc. Currently, the majority of the rates paid by residents in Camps Bay are used for other areas in the Cape Metropole. The rates that are raised by the CID would ALL be used for Camps Bay.

Will businesses in Camps Bay be treated differently to residents, and if so how?

If established, the additional rates levy will be mandatory on all business properties that fall within the area of the CID, as well as all residential properties. While the percentage increase will be the same for both, business premises normally pay municipal rates at a higher percentage than residential premises so to that extent, businesses will be contributing more.

What policing powers will the CID assume? For example will it have the powers to remove illegal structures, arrest lawbreakers, set up road blocks, carry out drug-related crime interventions and prevention, issue fines and respond to homeowner / business emergencies as a first responder?

A CID does not have special policing powers. Where it will deliver on the examples above is by providing additional resources and coordinating those resources exclusively for the benefit of Camps Bay. For example, additional dedicated law enforcement officers would accelerate the process of removing illegal structures, issuing fines etc.

The purpose of these additional resources is to benefit the whole community; as such it would not replace alarm monitoring companies such as Bay Response and FADT. However, the additional tactical vehicles that the CID would deploy throughout Camps Bay could and would respond to any emergency, including a homeowner or business emergency, and we anticipate that this additional capability would shorten response times to all emergencies. 

If CID personnel will be reliant on municipal support, as is the case now, how will this most important aspect of what the CID is being set up to achieve be handled, or will we be faced with much of the same as at present? What assurances will there be that “we are still waiting for SAPS/Metro/Ambulance etc” responses be lessened?

The CID will continue to work with municipal and private suppliers. It is a firm principle of the CID set-up and governance that it provides a professional mechanism for coordinating all municipal and private resources, as well as adding to these resources. This professional coordination is key: although much has been achieved with volunteer resources, it is no longer sustainable. In our experience, “we are still waiting for…” often means “no one is talking to each other…”. Professional coordination will go a long way to solve this.

What are the thoughts around providing additional responder vehicles/teams to replace those currently operated by CBCSI?

Subject to consultation and the business plan we anticipate that there would be additional responder vehicles dedicated to the area under the CID.

Will the CID be in a position to operate road closure points at the entry/exit roads to Camps Bay at certain times, to deter, monitor criminal vehicles, assist neighbouring suburbs with their crime?

Any CID has limited powers and cannot shut down roads without the authority of a primary agency. Joint agency operations will be negotiated with Primary agencies such as SAPS and City to conduct Vehicle Check Points and roadblocks providing logistical support for these type of operations which ordinarily would not occur due to lack of resources.

Subject to consultation and the business plan, we would anticipate License Plate Recognition (LPR) cameras at all entry points to Camps Bay, and other strategic locations within the suburb, linked to the City-wide database so that all known suspicious vehicles entering will be immediately flagged, tracked and intercepted. The Steering Committee also will investigate other technological solutions to ‘virtually’ manage perimeter security.

Will vehicle fines be used for additional funding?

No, although the CID may fund additional traffic resources.

Will parking attendants /meters be installed?

This is not currently within the remit of the CID.

Apart from the mandatory levy on municipal rates, does the CID have any other means of raising finance?

The City regulates how a CID receives its income. There are processes by which a CID can apply to both the City and Province to address specific issues and this is something the CID would certainly consider once established.

What thoughts are in place to control the misuse of Liquor / Drugs on certain beaches?

These are governed by bylaws and are often overlooked by primary agencies such as SAPS. These laws fall under the custodianship of the City Law Enforcement. Subject to confirmation in the business plan, the CID will endeavour to contract a team of dedicated Law Enforcement officers that will focus on these type of offences.

How might the CID deal with alleged poachers using boats off the coast of Camps Bay?

A CID would have no jurisdiction to directly address this issue, but would be well-placed to apply the necessary pressure with the right authorities.


Frequently Asked Questions – Camps Bay


Why does Camps Bay need a CID?

Fewer and fewer public resources are being dedicated to Camps Bay. For example, only two Law Enforcement officers are typically allocated by the City to Camps Bay part time, and they are expected to enforce all by-laws, including dealing with vagrants and illegal shacks. Given the increasing pressure of illegal dwellings, this is not sustainable.

SAPS Camps Bay is heavily understaffed, with police numbers decreasing every year. With up to 20,000 visitors per day in summer, our police resources are completely inadequate.

Private security firms such as Bay Response and ADT do their best to assist, but their commercial interest, and duty of care, lies in monitoring and responding to clients’ house alarm systems, not policing public spaces, and their capacity is extremely limited.

Currently, CBCSI (Camps Bay Community Safety Initiative) is the only community-funded initiative that attempts to plug the holes in our community policing needs. You can read more about CBCSI here: https://cbcsi.org/

CBCSI is funded by voluntary contributions of R395 per month. Despite the best efforts of the Trustees, only around 20% of households contribute. As well as being an unsustainable drain on volunteer resources, this budget is nowhere near sufficient to put in place the safety and security and other solutions that we now desperately need. A well-funded, long-term, community-led solution to these and other problems is urgently needed, and a CID is the only realistic solution.

What will happen to CBCSI after a CID is formed?

CBCSI will no longer be necessary and will fall away, since we will then have a comprehensive and sustainable safety and security solution in place.

I understand that a CID is funded by an additional levy on everybody’s municipal rates. But how much more will I actually have to pay?

The legislation allows for a wide range on the amount of the additional levy. The provisional amount will be included in the first draft of the Business Plan and may be revised as part of the public participation process. At this stage we estimate that it will amount to an additional 10-15% of your rates bill, approximately.

What do you need from me now?

We need all property owners to complete the Urban Management Survey on this link:

Urban Management Survey

The results of this survey will give the Steering Committee valuable information on which to base our business plan.

I’m a property owner but I haven’t yet received an email about the Urban Management Survey. What should I do?

The database provided to us by the City of Cape Town is unfortunately not 100% accurate or complete. Please email us with your name, address, email address and cell number to connect@campsbaycid.org

What happens next?

Once the results of the survey have been analysed, and the first draft of the business plan completed by the Steering Committee, there will be a first Public Meeting, which we anticipate will take place in April 2023.

When will the CID be operational?

If all goes according to plan, the CID could be up and running as early as July 2024. Meeting this target will not be easy, but with your support it is achievable.

Where can I find more information about CIDs generally?

A general list of FAQs about CIDs, provided by the City of Cape Town, can be found here further down on this page.

If you still have further questions that you feel haven’t been adequately answered, please feel free to email the Steering Committee on connect@campsbaycid.org.

You can also follow us on WhatsApp, Telegram, FaceBook, Instagram for updates and information.


Frequently Asked Questions – CoCT


What is a CID?

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

What is the difference between a SRA and a CID?

The terms SRA (Special Rating Area) and CID (City Improvement District) are interchangeable.  SRA is used in legislation and policies, whereas CID is used in operational terms.

What is the regulatory framework governing CIDs?

CIDs are governed by Section 22 of the Municipal Property Rates Act (MPRA), the Municipal Finance Management Act (MFMA), the Companies Act (Non Profit Company – NPC), the SA Constitution and the City of Cape Town’s Special Rating Area By-law of 2012.

Why establish a CID?

According to the SA Constitution (Sections 152 and 153), the objective of a local authority is to provide all its residents with certain basic services such as water, electricity, sanitation and refuse removal, etc. – up to an equitable standard. For communities who wish to enjoy municipal services of a higher level, a CID provides them with the option of paying for these additional services, which should be affordable and sustainable.

What types of ‘top-up’ services are provided in a CID?

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, etc.

Does the formation of a CID mean that the City can reduce the level and quality of its services?

No. The City is obligated to sustain existing service levels and to provide basic services as per the Constitution. Each CID will engage with the various service departments regarding the level of services to be provided by the municipality. This enables the CID to decide on the ‘top-up’ services required.

What are the benefits for CID members?

By combining their resources in an CID, 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.

Are there different types of CIDs?

No, but an CID can consist of industrial, commercial and residential components, or a combination of all three.

How many CIDs are there in Cape Town?

There are currently 39 CIDs in the City of Cape Town. Two communities are applying for establishment, and many others have expressed interest in establishing a CID.

How does one establish a CID?

An CID 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. They then 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 50% in an area classified as commercial and more than 60% for an area classified as residential) has to give written consent to the formation of a CID.

Once this has been obtained, the steering group has to submit an application to the City. The application is then advertised in the media and property owners are also notified to allow them at least 60 days 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 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 makes any payment to the CID.

Who manages the CID?

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.

Who monitors the finances?

An CID is governed by the Companies Act (71 of 2008) and manages its own finances and appoints its own auditors. The audited financial statements 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 Subcouncil, within two 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 management confirms the properties within the boundaries of the CID, which is then linked by the City to the municipal valuations according to the most recent general valuation roll.

The CID management 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 up 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 Rand 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 the City, and advertised for comments and objections as part of the City’s budget process prior to implementation on 1 July.

How are the CID additional rates collected?

The City collects the additional rates on behalf of the CID. It does not go to the City, although they share an invoice to save on collection costs. 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.

What happens to the difference between the actual billing and the pay-over?

The City pays the CID a monthly amount equivalent to one-twelfth of its approved budget less 3% as a provision for bad debts. The provision for bad debts is kept in a ring-fenced account for the CID. At the end of the financial year the City reconciles the billing with the CID budget pay overs and any under or over billing is offset against the accumulated bad debt account. This account is subsequently compared with the arrears as at the end of the financial year. When the latter is less than the accumulated bad debts, 75% of the difference is paid to the CID as per the Finance Agreement concluded between the City and the CID.

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

Yes. Once the City 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 in terms of relief.

Who can be exempted from paying the CID additional rates?

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 who qualify for rates relief/exemption as per the City’s Rates Policy
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. The City does not get involved in this process. 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. If there is a material deviation, an application in terms of Section 11 of the SRA By-Law is required. The City evaluates the proposed budget for affordability and sustainability.

What if the valuation base changes within a financial year?

The valuation base is a snapshot at a point in time (end February) and is used to calculate the additional rate (Rand-in-the-Rand) for the following financial year. However, municipal valuations can change within a financial year due to interim valuations, Valuation Court rulings, sub-divisions, rezoning or other technical adjustments. Should the valuation base decrease or increase substantially, the City must inform the CID in order to recalculate the CID’s additional rate.

Can my CID additional rates be spent anywhere in the City?

No, it is ring-fenced to be reinvested back exclusively into 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.

Do members have a say in a CID?

Absolutely! Every property owner within the CID should apply in writing to the CID Board for membership of the NPC. Only then are they able to participate in CID affairs.

You may be interested in reading or downloading the following documents:
  • Credit Control and Debt Collection Policy
  • SRA By-law (2012)
  • SRA Amendment By-law (2016)
  • SRA Policy (2017)

Disclosure


Disclosure of financial interests and potential conflicts of interest as may pertain to the establishment and operation of the Camps Bay CID

General disclosure for all members of the Steering Committee and the Management team

Unless stated otherwise to the contrary below, none of the Steering Committee or Management team members:

  1. Has any interest, direct or indirect, in any business or commercial entity operating in Camps Bay;
  2. Currently derives or expects in future to derive any financial or commercial benefit, direct or indirect, from the CID application process;
  3. Expects or intends to derive any financial or commercial benefit, direct or indirect, from the operation of the CID if and when it is established.

All of the Steering Committee members will offer their services pro bono for the duration of the CID application process and will make themselves available to continue to serve pro bono if the CID is established.

Specific disclosures for individual members of the Steering Committee

Spencer McNally is a trustee of the Camps Bay and Clifton Safe Community Trust (CBCSCT), which is a non-profit NGO that raises funds for security and related matters in Camps Bay and surrounds, and is the entity that funds CBCSI (the Camps Bay Community Safety Initiative). If the CID is established then it is expected that CBCSI and its services will be subsumed into the CID, while CBCSCT is expected to remain in place for purposes of raising funds for any security-related projects beyond the scope or budget of the CID. Spencer has never derived any financial benefit from CBCSCT, nor any entity contracted to CBCSCT, and does not intend to do so in future.

Louise Cooke is a trustee-elect of CBCSCT. Louise has never derived any financial benefit from CBCSCT, nor any entity contracted to CBCSCT, and does not intend to do so in future.

Gavin Reynolds occasionally rents out part of his primary residence.

Richard Bendel rents out part of his primary residence.

Until 2020, Jonathan Tillett occasionally rented out part of his primary residence but no longer does so.

Theresa Massaglia is founder and director of Ignisive, the NGO that initiated and manages the Community Stewards social upliftment programme operating on the Camps Bay beachfront. Other than reimbursement for out-of-pocket expenses, Theresa does not receive any form of remuneration from Ignisive. Theresa provides Human Resources and Organizational Development consulting services to corporate clients, which occasionally includes businesses operating in Camps Bay.

Kim Faclier has no financial interests or potential conflicts to disclose.

Shayne Krige has no financial interests or potential conflicts to disclose.

Specific disclosures for members of the Management team

Martin Steinau serves as a paid consultant to CBCSCT, acting as project manager for the CID application process. Martin intends to make himself available for full-time employment by the CID if and when it is established.

Muneeb Hendricks servesas a paid consultant to CBCSCT, acting as security and operations consultant for the CID application process. Muneeb intends to make himself available for full-time employment by the CID if and when it is established.


Do you still have questions?

Follow Us


Website by