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.

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