What is an Urban Improvement Precinct?
Provision is made in the Municipal Rates Policy for residents to set up an Urban Improvement Precinct in terms of the Special Rating Area (SRA) which is a defined area in which property owners contribute additional rates to fund “top up” services for the specific area in line with an approved business plan.
The SRA does not substitute city services but provides supplementary services, in our case primarily security, grass cutting and litter collection services. The community defines their own needs. The SRA is managed by a non-profit management company with an elected board of directors (all property owners in the area) and a representative committee. The SRA is funded from the additional rates paid by property owners within the boundary of the SRA.
The amount of these additional rates is determined by the budget, approved annually at an Annual Public Meeting by residents. This additional rate is collected by eThekwini Municipality from property owners. eThekwini Municipality pays these additional rates to the management company on a monthly basis. Services are then implemented as per the budget and business plan approved by residents at the Annual Public Meeting. Expenditure reports are tabled at board meetings and sent to eThekwini Municipality on a monthly basis. At the Annual Public Meeting, ratepayers view the Audited Annual Financial Statements, approve the Annual Business Plan and Annual Budget for the following year and re-elect directors of the management company.
An Urban Improvement Precinct is a way for residents to manage improvements and service delivery in their own area.
Within cities, urban decay can threaten the quality of life of residents and their confidence in the area which in turn affects property values. Examples of such decay include:
Crime and grime
Poor service in public areas
Poorly maintained infrastructure
Lack of social cohesion and interest in public spaces
All of the above factors are linked and, although safety and security is the number one priority of UIPs, it cannot be effectively addressed without addressing the whole. International research shows that areas that adopt a UIP approach to the management of public spaces in partnership with the municipality results in property values out performing areas without a UIP.
It is important to note that the services that an area will receive from the municipality is not linked to the amount of rates they may contribute to the city. The level of services from the Municipality is a set level of service. A UIP is able to fill that gap in order to ensure a higher level of service to public areas and at the same time it is able to hold the Municipality to account on service delivery more effectively than by individuals.
SAFETY
Improve safety and quality of life for the benefit of all
COMMUNITY
Retain existing community cohesiveness
PROPERTY VALUE
Create an environment which supports the growth of property values
ENVIRONMENT
Respond to the challenge of environmental sustainability
SERVICE DELIVERY
Partner with the Ethekwini Municipality and hold it accountable for prescribed services and enforcement of by-laws
The Urban Improved Precinct (UIP) is based on the Municipal Property Rates Act of 2004 which allows for the establishment of a Special Rating Area (SRA) for a defined geographical area. The property owners have to agree to pay for special services in addition to the normal municipal services.
The Manor Gardens UIP in terms of the Act must set up a non-profit company with a board of non-remunerated directors. The board will be constituted by representatives of the property owners. The board needs to approve a Business Plan and annual budget to provide the selected additional services.
The UIP budget is funded by the property owners and is calculated on a pro-rata basis using the existing municipal values of each property in the selected area. The payment is levied on the municipal rates bill and collected by the Municipality on behalf of the UIP NPO.
The UIP budget is funded by the property owners and is calculated on a pro-rata basis using the existing municipal values of each property in the selected area. The payment is levied on the municipal rates bill and collected by the Municipality on behalf of the UIP NPO.
As a guide, the rates are calculated as follows:
| Municipal Value | Proposed UIP Budget | Monthly Contribution |
| R500 000 | R269 000 | R65.84 |
| R1 000 000 | R269 000 | R131.68 |
| R2 000 000 | R269 000 | R263.40 |
We are currently in the voting stage. We have until the end of September 2024 to get the required votes to make our application to the city. To do this we require:
66% +1 of Residential Ratepayers (Single, Multiple + Complexes) to vote YES.
AND
50% +1 of Businesses to vote in favour.
If you are the owner of a property in the defined area you can vote in favour of the UIP to help get it established. Voting opens in September 2024.
You can also join the street team to help champion the effort to get votes in your street.
Students in the area can also join our student committee to help advise the steering committee on how best to serve the student community.
We are applying for a mixed SRA which includes residential and business properties in the area. Sectional titles and complexes will need consensus from their own governing bodies to vote in favour. Got any questions? You can chat to us about it.
Complexes:
Sectional Title Owners = Multiple Owners on one rateable property.
Formal voting will take place in a structured Body Corporate Meeting.
A meeting is required 50%+1 in support.
Each body corporate counts as one vote toward the overall tally.
You may have seen UIP signs up in other areas or on security guards patrolling promenades and streets. We’ve included a few with their websites so that you can see the improvements made over the years:
