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Reasons for CID

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The information which follows is a more detailed version of the information sheet hand delivered to all properties, residential and business in April 2008.

CIDs are essentially geographic areas in which the majority of property owners determine and agree to fund supplementary and complementary services to those normally provided by the local authority in order to maintain and manage the public environment at a superior level and thus enhance and protect their investments. 

Through the establishment of CIDs, urban management of defined areas is brought down to the street level with a focus and attention to detail that is not possible from local government. It is a given that the Johannesburg City Council will not be able to offer us any time soon a significant improvement in service delivery – and no magic wand is going to be waved to double the capacity of the over-stretched Parkview Police. 

As you are no doubt aware, the city relies on its citizens to report problems as there are too few inspectors and few electronic reporting mechanisms. In a recent Council survey, more than half of the residents declared themselves to be not satisfied with the state of affairs in Johannesburg. The main problems were listed as:

• Unemployment
• Crime 
•  HIV/AIDS

Regarding the Council's services, the following aspects were regarded to have deteriorated over the last 5 years:

• The Council's call centre
• The storm water system 
•  Neighbourhood streets 
•  Street lighting 
•  Electricity

We have to be realistic about the situation. Unless we introduce an element of self-help, the situation will continue to spiral downwards… more faulty streetlights, more potholes, more missing manhole covers, overgrown public spaces (both unsightly and providing shelter for criminals), more unchecked building sites, more crime… In contrast, managed environments offer friendly, clean and safe conditions that are a prerequisite for investment and growth. CIDs lead to the provision of managed environments and are a proven tool* in the fight against urban deterioration and decay and crime. (* See a note below from well-respected urban planner, Neil Fraser.)

The Johannesburg City Council, however, is constitutionally obliged to provide, at a pre-agreed level, the required essential services.

Funds contributed by the property owners may only be spent in the area in which they are collected, unlike rates.

Most of South Africa's urban areas are suffering from the effect of rapid urbanisation following the decades of apartheid control mechanisms. The older, more established areas in particular, are subject to increasing criminal activity and anti-social behaviour.  

While all thinking people understand the pressing social needs of our country, we are also entitled to feel safe in our homes and our suburbs and to live in an area that is clean and green. 

Communities that have investigated the benefits of a CID and are going that route include Sandhurst, Parkmore, Hurlingham, Illovo and Dunkeld. Craighall and Craighall Park cannot afford to be an isolated and unprotected enclave – we will all be the losers. 

1.       The improvement district approach is holistic

All issues that may be negatively impacting on an area are investigated and dealt with on an integrated basis. Security and cleaning are closely integrated. Overall management provides proper co-ordination, focusing services on where they are needed day-by-day.  

2.       The environment is enhanced, and investor confidence is strengthened

Enhancing the safety and cleanliness enhances the perceptions of an area.  

3.       The improvement district supports investment/increases property values

The perception of crime, grime and general environmental disorder in most urban areas has a negative impact on property values, lifestyle and development. The improvement district provides a results ­oriented set of programmes that produces immediate, tangible improvements.  

4.       An improvement district creates a positive identity for the area 

5.       The improvement district offers private sector management and accountability

The improvement district is constituted as a Section 21 Company with a board of directors comprising property owners, representatives of the residential association and a senior representative from the Joburg City Council. The majority of directors are required through the legislation to be property owners. Annual activities and budgets are developed by the CID management company which provides a full set of monthly management accounts overseen by the board, ensuring that the improvement district is directly accountable to those in the community who pay the levy. 

6.       The effectiveness of the improvement district is constantly measurable

Measurement can be made against, for example, crime statistics, visible improvements on pavements curbs and verges, rising property values before and after the formation of a CID. 

While the general consensus is that the formation of a CID is greatly beneficial, residents may be concerned that they have to pay an additional levy over and above their rates. Noting that there is provision for genuinely financially-strapped residents *, we have no option but to consider what we would like our area to be versus what we can expect from the Council. The analogy given is that although we pay our taxes, many of us prefer to use private hospitals rather than State facilities – we want our needs to be met efficiently, timeously and professionally.

Once a CID is officially registered, all property owners within the area are required by law to contribute. This avoids the situation of a small number of property owners refusing to contribute to the cost of the intervention whilst sharing in the benefits. Sharing the load between ALL property owners – including businesses and flat owners - is actually a major benefit for the whole area.

*All cases of genuine hardship are investigated. The process is dependent on the resident(s) concerned providing full financial disclosure. 

Applying for the formation of a CID

In terms of the current legislation and by-laws, a CID application can be submitted once 25% of the property owners in the area have approved the initiative. However the application will only be considered if 50% plus 1, or more, of the property owners representing 51% or more of the total property valuation of the area ultimately support the application. 

Costs are borne in proportion to the land value of an owner’s property.

An important part of the application is the submission of a business plan, compiled with input from residents. Supplementary services might include safety and security patrol officers (checking on eg building sites, vacant properties, illegal dumping), pavement cleaning, recycling collection, maintenance of public space (including transformation of Delta Park and the river area, potentially one of our area’s biggest assets), removal of illegal posters, rat-runningand such like. We can, for instance, budget for large speed bumps on every access road into our suburbs, noting that this is one example of a cost-effective crime deterrent.

Another potential project might be the introduction of town gas to our suburbs. A gas main runs along Jan Smuts and if a connection is possible, the costs involved (prohibitive for an individual) may well be feasible under the auspices of a CID. The steering committee is currently doing a preliminary investigation.

Further complementary services might include: web-based communication and information systems connecting all owners in the area, ie a fibre optic network which in turn could be used for a security camera surveillance system: it might also be connected to various local government departments. 

Through legislation, the cost of the provision of whatever services residents want a CID to provide, is spread on a pre-agreed equitable basis across all property owners within the geographic area. 

If you have any queries, members of the steering committee are available to assist:

• Chair:Paulette Malcolm: 011 787-3680, 082 452-9322, malcolmj@global.co.za
• Peter Heritage: 083 261-7576, peterlucy@absamail.co.za
• Kendall Rattey: 086 689-0610, prattey@mweb.co.za
• Chris Taylor:                              083 294-5845, chris@fr.co.za
• Richard King:                             083 401-5174, richard.king@za.bp.com
• Bianca de Roland Phillips083 390-7194brohleder@global.co.za
• Amy Allen:                                 083 443-4690, tonto@global.co.za
• Blyth Thompson: 083 288-7288, computerbird@telkomsa.net

 Ex officio:

• Ian Ollis, Ward Councillor: 011 881-6016, 082 714-7572, ianollis@lantic.net
• Wendy McAllister, Communications:                         011 325-7165, wendym@creativecoms.co.za
• Kagiso Urban, CID Establishment Project Leader:      011 447-8841

*A quote from Neil Fraser: “For over 20 years in the UK [and USA], city centre management has seen a change from the traditional local government-led model to include a variety of types of city partnerships between public and private sectors as well as the emergence of town centre managers (often with a team of specialists) that are paid for through a variety of funding streams, some by business, others by business and council , others by various combinations helping [an urban area] realise its natural role both as a prosperous location for business and investment, and as a focal point for vibrant, inclusive communities… [property owners benefit through] the demand for property, increasing both its capital worth and rentable value.“