Additional FAQ
Q: Why does the proposed area not include the whole of Tamboerskloof?
A: Ideally, the defined area would have been the whole of the suburb of Tamboerskloof. But the breakdown of standalone properties vs sectional title units in such an area would be one third to two thirds.
Experience clearly shows that engaging with and gathering support from the owners of sectional title units on the prospect of establishing a CID is considerably more challenging and time-consuming than from owners of standalone properties. This is for multiple reasons: sectional title units are often rental properties whose owners are less engaged with the local community; owners already pay levies and thus can be more resistant to additional costs; owners are often less concerned about the upkeep of public spaces since they are one step removed being in apartments and; owners can often be older people or first time buyers all of whom can be more resistant to additional costs.
The challenge to engage with the owners of sectional title units is not peculiar to CIDs though as most body corporates will confirm they struggle to achieve quora at AGMS for similar reasons.
Thus, the very specific boundary that has been proposed for TBKCID was drawn to create an area with the lowest density of sectional title to maximise the prospect of being able to establish TBKCID without undue delay. The proposed defined area had to be approved by the dedicated CID Dept at the City of Cape Town, and extensive discussion was had in arriving at the current map.
The area can be expanded in the future and in fact this is precisely the process Clifton is currently going through. But what is required for expansion is a group of property owners motivated to drive the expansion which requires an ancillary budget and business plan on which property owners in the expansion zone vote.
Q: Is there a difference between residential and commercial CIDs?
A: No, they are all governed by the same legislation, are all audited, must all publish the same documentation annually and follow the same operational protocols. There are slightly different voting thresholds in the establishment phase (lower for commercial areas) and the additional CID rate paid differs (higher for commercial).
Q: Who can be a director of a CID and how are they elected?
A: All directors (whether in residential, commercial or blended CIDs) must be property owners within the defined area. They must comply with CIPC requirements in terms of being a person of good standing to be nominated for election. Elections take place annually at AGMs and are voted on by members of the company. All property owners are eligible to become members of the company. Membership is free and requires only the completion of a simple form but must be applied for – this is a CIPC requirement. At each AGM a third of the elected board must step down but may stand for re-election.
Q: What will the CID cost me?
A: In the first year, the cost, including VAT, will be R133.88 per R1m of municipal property valuation
Q: How does my contribution change year on year?
A: For each of its five years, the CID’s budget is entirely fixed in absolute terms. Over the five-year period, on average, the budget increases by 5.3% each year but this is not entirely linear given the timing of certain budgeted expenditure, particularly projects. The budget and percentage increase in each year can be found on page 28 of the Final Business Plan which is available on the home page of the TBKCID website. If nothing else changes, the R133.88 (incl VAT) of year one cost will increase by the same percentage increase in the budget every year. However, in a year when municipal values are revised by CCT (currently every three years), this percentage change may differ. For example, in a revaluation year, if the increase in the aggregated municipal value of the properties in TBKCID is greater than the percentage increase set for the TBKCID budget, then the percentage increase in the actual amount paid per R1m of property value by each household, will be LESS than the increase in the TBKCID budget. Yes, we know that’s a lot of mental maths! Contact us if you prefer to see that walked through in simple number terms.
Q: When and how does my municipal property value change?
A: The City of Cape Town currently revises municipal values every three years. The revaluation takes into account several factors including transaction values of your and neighbouring and/or comparable properties. If you sell your property, at the next revaluation, that sale value will be taken into account but it is not the municipal value that will automatically be applied to your property at the next revaluation.
Q: The voting process has commenced and there seems to be no deadline, when does voting end?
A: CCT provides standardised timelines for the establishment of CIDs which stipulate that votes supporting any application for the establishment of a CID must be submitted by the October of a given year with the aim of the CID establishing on 1 July the following year since all CIDs follow CCT’s financial year of 1 July – 30 June. But there is considerable flexibility in this. All voting periods commence with the conclusion of the second public meeting and the business plan which supports the potential establishment of the CID is valid for 9 months from this date. However, an application can be made for extension of the validity period of the business plan and voting period and there are many recent precedents for extensions being granted – although TBKCID sincerely hopes this won’t be required!