A City Improvement District (CID) also known as a Special Ratings Area (SRA) is a non-profit organisation operating within a defined geographic area within which property owners agree to pay a levy for supplementary and complimentary services set to enhance the physical and social environment of the area.
A CID, according to the SRA by-law collects a CID levy from the ratepayers in the area over and above the normal rates charges. The money collected, unlike the rates, is a dedicated levy which can only be spent in the specific CID area and is used to provide “top up” services according to an approved Business Plan. These services provided by the CID are supplementary to those provided by the City of Cape Town, which continues to provide normal services.
The advantages of establishing a CID
- The cost of providing supplementary services will be borne by all property owners
- Costs are borne in proportion to the value of the property
- The Improvement District approach is holistic
- Provides enhancement of the environment and strengthens investor confidence
- The Improvement District creates a positive identity for the area
- The Improvement District provides private sector management and accountability
- The improvement of property values
- To put forward ideas for change to council