Thomas Johnson, Belthorn Estate
At a community meeting on Wednesday October 12, ward councillor Zahid Badroodien said he'd like to establish a community improvement district (CID). It goes by various names, including “special ratings area”, and he said it would add a service to what the City is doing and the community would decide what they need and it would include local employees ("Water worries," Athlone News, October 19).
Typically CIDs are located in predominantly business districts and provide cleansing and security. The majority of rate-paying residents in a proposed area, not necessarily a ward, must approve its formation.
But what Mr Badroodien did not say is CIDs are funded by a levy on rates the City collects on its behalf and would add another level of red tape to service provision. By law, municipalities are responsible for all municipal services, whether CIDs exist or not. With CIDs in the picture, services and resident requests/complaints would be bounced between the two.
Municipalities like CIDs - it’s a win-win for them because they can reduce service in an area while still receiving full rates. But residents must pay extra for two entities - The City and CID - for some duplication of services. It makes no sense to pay two entities for the same thing.
CIDs are independent, not-for-profit organisations with their own management and boards. They report to their members - property owners/ratepayers, not the City or councillors. So Mr Badroodien speaks beyond his authority by stating that the CID "will include local employees".
He can’t make that promise because the CID management and board would be independent to make their own decisions.
CIDs are most effective in business districts where the traffic volume is high but less so in quieter residential areas. I don't know if Mr Badroodien gave it much thought, but I doubt it.
Does the City know about his proposal? A CID for the entire Ward 48 would be too large and unwieldy - the area is too big and not homogeneous.
As with all CIDs, a significant part of their income - a rates levy - goes to well-paid management salaries and consultant fees, not services residents can see. Ironically, high management fees are illustrated by the R300 000 cost to the City for Ward 48 by-law compliance officer Mogamad Lietch mentioned in the article.
The case for a CID must be made with a financial business plan, including what it would cost residents over and above what they're already paying for rates. But with rising food, power and fuel costs, a CID levy would be a burden especially to the many poor households in Ward 48. Even middle-class people everywhere are feeling the high cost of living.
It's a bad idea. It's understandable Mr Badroodien and the City want to reduce expenditure and work load but suggesting a CID for Ward 48 is not the way to do it. They have resources, not all of them well utilised all the time. They must just work with what they have.
Ward 48 councillor Zahid Badroodien responds:
A CID is based on international best practice. It is aimed at preventing the degeneration of cities and towns and the consequential urban decay, and facilitating their upliftment, economic growth and sustainable development.
A CID has the opportunity to enhance and supplement the municipal services provided by the City, facilitate investment in the special rating area, and facilitate a co-operative approach between the City and the private sector in the provision of municipal services.
The City recognises special rating areas as a potential tool for assisting it to fulfil its constitutional and statutory obligations to allow property owners within a geographical area to improve and upgrade their area by means of a property rate in addition to the standard property rate.
A CID offers a top-up service to the existing basket of services already delivered by the City of Cape Town.
A CID determines its own borders, its own business plan and its own priorities. It’s important to note that 60% of the community must support this proposal through a voting process. Those residents that qualify as indigent do not pay the additional fee as they are exempted but benefit from the services delivered by the CID.
The City does not see its role as advocating or initiating the establishment of special rating areas but rather facilitating the process with guidance and advice and assisting and helping to capacitate management bodies. This is a resident-led process.
There are a number of already existing CIDs in predominantly residential communities which function exceptionally with the support of their community.