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In the context of urban management, "UIP" and "SRA" are interchangeable terms, both referring to a legal mechanism, the Urban Improvement Precinct (UIP), which is technically known as a Special Rating Area (SRA). It's a defined geographic area where property owners agree to pay additional taxes (a special levy) to fund services beyond those provided by the municipality, such as enhanced security, cleaning, and improved infrastructure. 

Here's a more detailed explanation:

  • Special Rating Area (SRA): This is the technical term under the Municipal Property Rates Act of 2004. 

  • Urban Improvement Precinct (UIP): This is the more common and user-friendly term for the SRA, according to urbanmgt.co.za. 

  • Purpose: SRAs/UIPs are established to improve the quality of life in a specific area by providing services that exceed the standard municipal services, often focusing on crime reduction, cleaning, and enhancing the overall environment. 

  • Funding: Property owners within the SRA/UIP pay a special levy, which is collected by the municipality and then paid to the UIP (a non-profit entity or company) that manages the additional services. 

  • Governance: The UIP is managed by a board of property owners or their representatives. 

  • Examples: SRAs/UIPs can be found in various areas, including Umhlanga's beachfront promenade and in Umhlanga, The Witness reports. 

Formation of UIP for Munster Ratepayers.

NB : UIP (Urban Improvement Precinct) and SRA Special Rating Area) are interchangeable terms

 

UIP: Urban Improvement Precinct. (Designated area within a city or town that have been identified for special attention and investment to improve their condition, appearance, and functionality.) They are usually established by local stakeholders such as property owners residents businesses and municipal authorities who collaborate to provide additional services such as security patrols, waste management, landscaping, maintenance and beautification projects.

Examples of flourishing UIP’s Umhlanga Urban Improvement Precinct Waterfall City, Ballito.

 

Why the need to form a UIP

 

To provide shortfall services that municipalities now do not provide such as security lighting beautification of the suburb and other maintenance. We all pay rates or should do but all of us are fully aware of the shortcomings of the municipality in our area. Why pay for medical aids when there is a health service. Why pay for security when there is a police force? Why pay for private schooling when education is provided by the state? The answer is the same for all the above in that we do not get the services we need or wish for. We might all feel that we are being shortchanged by the municipality and we demand the services, but the practical reality is that the municipality is not able to supply the level of services we demand. The municipalities in all areas of our country are overburdened by a commitment to all South Africans to raise their standard of living to try and make South Africa a better country to live in. This ideal may seem to be pie in the sky and annoying to many people, but we live in this great country and need a commitment by all South Africans to get this country back on track. Getting angry with the municipality because you do not seem to be getting your bang for the buck or believing that a rate boycott will alter attitudes in municipalities is simply the wrong path to take. Rate boycotts do not work and would result in a complete collapse of what is left of the municipality. Simply not helpful to anyone.

One of the ways forward is to form a UIP to improve our town our standard of living and increase the value of our properties. Not committing to such a project would simply doom our town to the very opposite.

UIP formation

In order to form a UIP we need the commitment of all ratepayers in Munster to add a certain amount to their rates each month that would be collected by the municipality and then returned to us in its entirety less 2.5% for collection. The amount that is collected by the UIP would be under our control to do whatever needs to be done to improve our town without the hindrance by the municipality. We will have full choice on how this money is spent and is audited on an annual basis by the UIP committee. The process is completely transparent and is governed by an act of Parliament. Southbroom has been running a UIP for over 14 years and not one cent has been misappropriated, stolen or missing. Southbroom 20 years ago used to have upwards of 20 break-ins a month. Today Southbroom is crime free with the crime prevention  run completely through the monies brought in via the UIP. We may not have the number of ratepayers or the financial clout that these Southbroom ratepayers have but I believe that many Munster residents would be keen to have zero crime with more lighting less potholes more beautification projects, increased protection of our marine reserve and beach.

In order to form a UIP we need the backing of 66%+1 of all ratepayers in Munster. Once we have achieved these numbers all residents of Munster will be committed to the payment of the UIP together with their rates. The UIP payment becomes part of your commitment to the municipality and therefore needs to be paid monthly or upfront annually and therefore it follows that these two amounts are levied on all properties whether freestanding, community style or undeveloped stands. On sale of any property rates and UIP payments need to be fully paid up in order for the transfer of the property to take place.

The UIP committee is beholden to the community is voted in by the community and can be removed by the community so complete transparency is the order of the day to make this small town a greater place.

What we need to do

The essential requirement in order to go forward with a UIP formation is to establish an accurate data base of all ratepayers in the community and for that we would need everyone’s commitment to complete this rather daunting task. Once the data base is complete a vote by all Munster ratepayers will take place and if it passes the 66%+1 vote the UIP can be formed with the establishment of a committee to oversee the finances and all future projects.

Amount to be committed

Municipal Rate plus R 150.00 UIP levy per month

UIP formation process.

 

1 . Define the area of the UIP

2 . Apply to the municipality with at least 25% support of ratepayers.

3 . Advertise the application and hold public meetings for comment.

4 . Obtain municipal approval.

5 . Obtain 66% +1 support of all ratepayers whether they voted or not.

6 . Register section 21 company  Munster Property Owners Association Munster Property Owners    Association (MPOA).

7. Appoint Board of Directors and the board appoints a chairman.

8 . Open bank accounts.

9 . Implement business plan.

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