1. Special Rating Areas Roles and Responsibilities ATHCID 13 November 2012 and 28 January 2014 Presented by: Inter-Services Liaison Dept. - Finance

2. Legal framework SRA By-Law - Section 22 of MPRA - MFMA - MSA - Constitution (Schedules 4 & 5) - Comp Act NPC (Sect 21) SRA Policy Rates Policy Credit Control and Debt Collection Policy

3. Documentation SRA By-law SRA Policy Frequently Asked Questions Establishment Timelines Presentation: Introduction Finance Agreement List of existing SRAs Generic MOI

4. RELATIONSHIPS MEMBER CoCT SRA Mandate to implement Business Plan Non-profit Company membership Billing Receipting Debt management Guide establishment process Finance Agreement Compliance Political representation Service Departments

5. Monitoring & Oversight by City Post Establishment Compliance - Extension of boundaries - Renewal of term - Companies Act - Annual reports and Implementation Plan - Payments - Review annual budgets - Annual Financial Statements

6. Role of SRA Boards Implementation of Business Plan - Appoint service providers / staff - Manage daily operations Compliance with Companies Act (MOI) - Board meetings - AGM - Audited AFS - Appointment of Directors - Appointment of Auditors - Chairman’s Report / Annual Report

7. Role of SRA Boards continued/… Compliance with SARs requirements - VAT and Tax Compliance with SRA By-law and SRA Policy - Financial reporting - Annual budgets with implementation plan - Renewal applications - Interaction with appointed politician(s) on SRA Board - Interaction with Council service departments - Submit Annual Report and audited AFS to Subcouncil - Provide input to IDP and Council budget

8. Role of Service Departments Review Business Plan of pending SRA iro feasibility and alignment with SDBIPs / IDP Review Business Plan of SRAs Interact with SRAs in respect of services (co- operation, co-ordination and synchronisation)

9. Role of Finance Inter-Services Liaison Department - Establishment process - Annual review and alignment of SRA By-law and SRA Policy with legislation and best practice - Compliance by SRA with SRA By-law, SRA Policy, relevant legislation (MFMA, MSA, MPRA and Companies Act) and Finance Agreement - Financial reporting between SRA and City - Reports to Finance Portfolio Committee, Mayco & Council

10. Role of Finance continued/… Inter-Services Liaison Department / continued… - Oversight and monitoring function - Financial modelling to determine c/r and ensure affordability and sustainability - Ongoing purification of data (Property and other) - Interact with Revenue in respect of billing and debt management - Process monthly payments to SRAs - Annual review of accumulated retention - Ongoing advice and guidance to SRAs

11. Role of Finance continued/… Budgets - Include bottom-line SRA Budgets in the City’s Budget Revenue Department - Billing, receipting / collection - Debt management in respect of SRA arrears - Apply exemption criteria for relief Valuations - Ongoing valuation roll purification

12. Role of Finance continued/… Expenditure - Physical payments Treasury - Consolidation of SRAs AFS with City’s AFS Supply Chain Management - Vendor management

13. Role of Subcouncils Nomination of political representatives Noting SRA Annual Reports and AFS Ad hoc interventions with SRAs

14. Role of Politicians Appointed by Executive Mayor Attend, participate but not to vote at SRA Board Meetings (Not an observer) Be familiar with content of Business Plan of SRA Interact regarding matters of mutual concern Facilitate pooling of resources for maximum benefit to community Guide SRA regarding functions to be aligned with IDP

15. Role of Politicians/continued… Facilitate service delivery from City where lacking or unacceptable Inform SRA of City’s vision and bigger picture approach as SRAs are localised Serve as link with Subcouncil and City to maximise efficiency Refrain from involvement with daily administration and operational matters (legal opinion) Guard against Council abdicating responsibilities

16. SRA Team contact details George van Schalkwyk george.vanschalkwyk@capetown.gov.za 021 400 1985 Eddie Scott eddie.scott@capetown.gov.za 021 400 1872 Joepie Joubert joepie.joubert@capetown.gov.za 021 400 5138 Runan Rossouw runan.rossouw@capetown.gov.za 021 400 5148

17. Questions

18. Let us work together for a better city