What is an SRA?
A Special Rating Area (SRA) refers to a clearly defined geographical area, in which property owners contribute
additional rates to fund ‘top up’ services for that specific area as per the approved Business Plan.
What is the regulatory framework governing SRAs?
SRAs are governed by Section 22 of the Municipal Property Rates Act (MPRA), the Municipal Finance
Management Act (MFMA), the Companies Act (Non Profit Company – NPC), the SA Constitution and the City of
Cape Town’s Special Rating Area By-law of 2012.
Why establish an SRA?
According to the SA Constitution (Sections 152 & 153), the objective of a local authority is to provide all its
residents with certain basic services such as water, electricity, sanitation and refuse removal, etc – up to an
equitable standard. For communities who wish to enjoy municipal services of a higher level, an SRA provides
them with the option of paying for these additional services, which should be affordable and sustainable.
What types of ‘top-up’ services are provided in a SRA?
Typically, these would be services dealing with Urban Management issues like additional public safety
measures, cleansing services, maintenance of infrastructure, upgrading of the environment, and social services,
etc.
What is the regulatory framework governing SRAs?
SRAs are governed by Section 22 of the Municipal Property Rates Act (MPRA), the Municipal Finance
Management Act (MFMA), the Companies Act (Non Profit Company – NPC), the SA Constitution and the City of
Cape Town’s Special Rating Area By-law of 2012.
Does the formation of an SRA mean that the City can reduce the level and quality of its services?
No. The City is obligated to sustain existing service levels and to provide basic services as per the
Constitution. Each SRA will engage with the various service departments regarding the level of services
to be provided by the municipality. This enables the SRA to decide on the ‘top up’ services required.