CID Proposal for Marloth Park
MPRA believes that a CID (City Improvement District) would be a viable way of managing Marloth Park and securing its future. At the heart of it, A CID would be a co-operative management system between the municipality and property owners.
Why do we need a City Improvement District (CID) or Special Rated Area (SRA) for Marloth Park?
• Due to our bad security measures and bad ecological state, we are a huge security and ecological risk for the Kruger Park; and why we will not be considered to be included in the Greater Limpopo Trans-frontier Conservation Area (GLTCA) like others in the buffer zone around the Kruger at this point
Why do we need a City Improvement District (CID) or Special Rated Area (SRA) for Marloth Park?
• The Nkomazi municipality only receives an income from the rates and taxes of the urban areas within the Nkomazi area and not from the rural areas. The urban areas within the Nkomazi district consists of Marloth Park, Malelane, Hectorspruit and Komatipoort. There are an additional 29 rural communities. Grants only go to rural areas. The municipality does not have enough budget or resources to provide proper service delivery to all the urban and rural areas.
So what do we as owners do to become more self sufficient, help the municipality, and thus ensure the future of Marloth Park?
• We register a CID or SRA for Marloth Park.
What is a CID or SRA?
• A CID or SRA is a defined geographical area within which the property owners normally pay additional levies which is used to fund additional services to maintain and manage a public space and to enhance their investment.
• A CID or SRA is unique to every specific area within South Africa and gets structured as to the needs of that area, town etc.
But why should I pay an additional levy for service delivery that the municipality should provide?
• Firstly, the reality is that our country is in dire straits. It will unfortunately not get better; it will however get worse.
• Load shedding for example is country wide, it applies to all no matter what your stature, your race, your gender, or your age. The difference comes into how you help yourself through it. It is up to you. If you sit in the dark, it costs you nothing additional. If you run a generator, it is at an additional cost to you. If you run an inverter plus a battery and/or a solar system, it is an additional cost to you. The
same applies to fix and run our own services.
• MOST IMPORTANT, is that we will just have to pay an additional levy for most probably the first couple of months just to help us onto our feet. Thereafter, we should have already negotiated a CONSERVATION LEVY/FEE AT OUR ENTRY GATES payable by tourists and guests booking in for accommodation. These visitors use our infrastructure and our facilities free of charge, it is only fair that they contribute.
FACT
• Marloth Park Ratepayers Association did a survey during lock down in 2020.
• We worked out that we could have generated R2 113 464-00 for the period of 1st July 2020 to 30th November 2020, if we charged a R20 per person conservation fee. (July 2020 included no interprovincial travel).
• As per the municipal valuation role as of 2022 for Marloth Park, the rates paid by Marloth Park to the Nkomazi municipality is an amount of R1 549 007-60 per month, with a total amount of R17 681 915-64 per year. (Development of erven has since increased immensely, which means actual figures to be way in excess of those figures mentioned).
What would I have to pay for a couple of months to get us on our feet before we start generating an income at our entry gates?
• 0.2% of your municipal valuation of your property.
• eg. R1 000 000-00 valuation x 0.2% = R2000-00 per year, ÷ by 12 = R166-66 per month or
• eg. R250 000-00 valuation for a stand x 0.2% =R500 per year, ÷ by 12 = R41-67 per month
FACT
• As per the 2022 municipal valuation role, the valuation of the Marloth Park properties amounts to a
sum of R2 095 193 000-00 per year.
• If you work out an additional levy amount of 0.2% of that R2 095 193 000-00 valuation amount, it works out to R4 190 386-00 per year, and R349 198-83 per month that we could generate for Marloth Park as property owners.
Can the levies go up in a few months?
• No, the levy amount will stay 0.2% of your municipal valuation, it cannot change for any reason. The municipal valuation role gets done every 5 years.
I cannot pay as I am a senior dependant on my SASSA or I am needy
• Seniors who are dependant on their SASSA as their only income, or property owners who are needy, will be subsidised by other good Samaritan property owners who can afford the subsidy.
• Remember, if all works out with a conservation fee, NONE of us will have to pay an additional levy.
I am eager for discussions to be had with the municipality, and a proper business proposal for perusal thereafter. What must I do on my side?
• Please fill in the MANDATE FOR CID/SRA DISCUSSION and send it back to MPRA.
• Remember that EVERY OWNER needs to fill in a document if you are co-owners, a trust or a CC or a company.
• Please spread the word to neighbours or friends that might be new owners or not on the mailing list.
I would also like to join other property owners by already contributing to a VOLUNTARY CID/SRA
• Please fill in the MANDATE FOR A VOLUNTARY CID/SRA and send it back to MPRA.
• It would obviously be great if you could already pay your 0.2% but if you would like to pay more or less, please mark your voluntary payment per month on the form.
• A monthly statement will be sent out on whatsapp and email to yourselves as to what monies have been received and what you, the property owners, have decided it needs to be used for that month.