Page 1

cape town central city

improvement district

clean // safe // caring // open for business

annual report 2013


vision

StrIVInG For a Central CItY DIStrICt tHat IS SaFe, Clean, CarInG, open For BuSIneSS anD a Centre For all aBoUt tHe cape town central city improvement district (ccid) A public-private partnership, the Cape Town Central City Improvement District (CCID) was established in November 2000 by local property owners with a vision for the area to rise from the “crime and grime” scenario it had fallen into, to once again become a safe, clean and caring urban environment. The term “City Improvement District” (CID) refers to a specific geographical area, approved by the City Council in terms of the municipal Property Rates Act, Section 22 (Special Rates Area), and the CID Bylaw, in which complementary top-up services are provided in addition to those rendered by its partners in the CBD – the City of Cape Town and the South African Police Service (SAPS). Operating with its own Board of Directors, the CCID’s managing agent is the Cape Town Partnership, a collaboration of public and private sectors working together to develop, promote and manage the Cape Town Central City. The Cape Town Central City is considered to be South Africa’s most vibrant and safest CBD. With the CCID having achieved its original mandate to establish the area as a successful work, live and play destination where it is business as usual for all its stakeholders, it has in the past few years also turned its sights towards showing the world beyond its boundaries that it is open for business.


CAPE TOWN CENTRAL CITY IMPROVEMENT DISTRICT

annUal report 2013

FOR THE YEAR ENDED 30 JUNE 2013

contents cHairperson’s reVieW: The business of delivering service

2

THe cciD’s buDgeT aT a glance: How far does a cciD rand go?

4

cHief operaTing officer’s Message: Thinking outside the box

6

safeTY & securiTY

10

urban ManageMenT

12

social DeVelopMenT

14

coMMunicaTions & MarKeTing

16

reTail opinion, business & resiDenTial surVeYs: Highlights

18

annual financial sTaTeMenTs  Directors’ Responsibility Statement  Directors’ Report  Independent Auditor’s Report  Statement of Comprehensive Income  Statement of Financial Position  Statement of Changes in Reserves  Statement of Cash Flows  Notes to the Financial Statements  Detailed Income Statement

20 21 22 23 24 25 26 27 28 38

THe cciD in 2013: staff and board Members

40

acKnoWleDgeMenTs anD THanKs

41


cHairperson’s reVieW

tHe BUsiness oF deliverinG service Looking beyond its role as a City Improvement District (CID) under the City of Cape Town Special Ratings Area Policy, Cape Town’s CCID sees itself as a business with a variety of excellent services to offer to its clients in the Central City.

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FOR A NUMBER OF YEARS now, the Cape Town Central City Improvement District (CCID) has conducted its work against two key themes. The first of these came about through our original mandate 13 years ago to get the basics right and benchmark the Cape Town CBD as a place that was safe, clean and caring. Once we had established practices for ensuring this theme was in a “business as usual” working order, we turned our sites towards marketing the area as an ideal location for investment from beyond our borders, through our “open for business” theme.

CENTRAL CITY IMPROVEMENT DISTRICT ANNUAL REPORT 2013

But just what business is the CCID itself in? What does a City Improvement District (CID) – of which there are 26 across the Western Cape — do? We’re often asked this question and the answer can be quite complex. That is until you think of us as a business ourselves, in which the top-up services we undertake — in addition to those delivered as standard procedure by our partners, the City of Cape Town and the South African Police Service (SAPS) — are seen as the “products” we provide. And in order to secure existing and draw new investment our way, we must ensure that we clearly identify and deliver Unique Selling Propositions (USPs) to both current stakeholders and potential future clients. For example, we provide additional safety and security products in the Public Safety Officers (PSOs) we contract to patrol the streets and the state-of-theart technology we acquire to assist them to constantly up the ante on the work they do. We provide urban management products in the additional cleaning and maintenance teams we contract and equipment we invest in to sweep the streets, deal with illegal dumping and — through our NGO partner, Straatwerk – provide 300 job opportunities to the less fortunate. We provide social development products through our team of fieldworks

who daily spend hours assessing, assisting and attending to the needs of the Central City’s homeless. In other words, adding additional value to the Cape Town CBD is our business and the standards to which we deliver this make up our USPs.

UnderstandinG tHe ccid’s BUdGet The CCID’s budget that it received in terms of the City’s Special Rating Areas Policy for the period under review was just under R38 million, against which it looked after an area in which the municipal value of the properties currently exceeds R23 billion. How this translated in the 2012/2013 financial year is that for every R1 million at which a Central City property is valued, the property owner paid approximatrely R183 per month as part of the monthly municipal levy for all the products the CCID delivered at street level. But what’s interesting about the CCID budget – and indeed the way in which municipal rates work in general — is that, although property values increase significantly year-on-year in the CBD, increases in the CCID’s budget, only ever rise proportionally in relation to standard inflation, and not in proportion to the new properties that come on line and the additional square meterage they bring with them.


cHairperson’s reVieW OPPOSITE The CCID’s Safety & Security personnel on the beat. RIGHT CCID’s Chairperson Rob Kane.

In other words, as the CCID, our budget is fairly rigid: if a new property is built and brings more bulk in square metres to the CBD (and therefore more meterage on which the City is able to charge municipal rates) the effect is not that the CCID receives more in levies, but rather that the CCID levies charged per square metre across the entire CBD go down during that financial year. So the more densification takes place, the more all ratepayers score, as their CCID levies per square metre decrease. However, on the CCID side, more square metres obviously places more demand on our products in terms of the increased footfall that comes into town. For example, it brings more employees to fill the desks in new buildings, more shoppers to experience the ever-increasing retail offerings, more residents attracted to an inner city lifestyle, more seats to be filled in new entertainment venues. Also, as the CBD becomes increasingly popular in terms of events and conferences, increasing numbers of visitors, are coming to our 1.6km2 corner of the world. It is therefore easy to understand how this heightened influx, against a budget that only increases marginally annually to meet inflation, places more demand on safety, security and urban management to keep our streets safe and clean. And of course, the attraction of economic opportunities places a higher demand on our social development team to deliver the caring side of our business, particularly in the trying times in which the country currently

finds itself with its high unemployment and homelessness.

ensUrinG we tHinK smarter

So then, what do we do in the face of these challenges? We do what any other good business would do: we think smarter about how we deliver against our USPs. We seek out new ideas and best practice examples from other parts of the world that can be well-adapted to our own South African scenario; we deliver better communications to stakeholders to ensure they understand both our product offering and the complementary ones offered by our partners; we undertake research to determine the exact parametres of our area and gauge public perception of our work, to find the areas in which we could improve. And we market ourselves to the world, building confidence and inviting investment. No doubt we will face challenges in the coming year, among them the growing social issues we face along with every other CBD in the country. We also hope to see inroads made into addressing the challenges that face public spaces as well as finding a way for formal and informal trading to co-exist more cohesively. But in spite of these challenges, it is clear we’re doing something – in fact quite a lot — right. A number of surveys have once again this year seen us voted the cleanest and safest CBD in South Africa, and for the 13th consecutive year, we’ve been given a clean audit. Plus there is much to look forward to in the year ahead as we enter our 14th year of operations: a recent residential survey which we conducted during 2013 high-

lighted the many reasons people love living in the CBD; a population that has grown significantly from around just a few hundred people in the early 2000s to (according to the latest SA census) more than 5 000 today. Our latest business and retail surveys show that confidence in the Central City remains high, in spite of economic conditions. The construction sites dotted around the city and particularly towards the lower end of Bree Street herald a number of exciting new developments that will open their doors over the next 12 months. We will see Cape Town being the World Design Capital (WDC) 2014, during which we know a spotlight will shine on the area of the CBD known as The Fringe – a hub in our East City precinct for the creative industries and knowledge economy. Plus, of course, the second edition of our State of the Cape Town Central City Report, currently in production and to be launched in February 2014 as the “2013 year in review”, is already a much-anticipated document, outlining as it does the course of

investment into the Central City. Just as with any other successful business, we owe our success to the Safety & Security, Urban Management, Social Development and Communications & Marketing teams that drive the CCID, under the dynamic dayto-day leadership of its Chief Operating Officer, Tasso Evangelinos, and under the excellent guidance of a dynamic Board. To our service providers and our partners, in particular the City of Cape Town, SAPS and the Cape Town Partnership, we owe a huge gratitude of thanks for creating the enabling environment in which we are able to conduct our business and successfully deliver our products to our clients.

ROB KANE Chairperson Cape Town Central City Improvement District

ANNUAL REPORT 2013 CENTRAL CITY IMPROVEMENT DISTRICT

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breaKing DoWn THe buDgeT

tHe ccid’s BUdGet

at a Glance:

what exactly did your ccid levy buy you during the 2012/13 Financial year? The CCID today boasts a task force of 600-strong who are deployed across the Central City, servicing the four departments of the CCID in the following ways.

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SAFETY & SECURITY

SOCIAL DEVELOPMENT

(see pages 10-11 for a full breakdown of services delivered)

(see pgs 14-15 for a full breakdown of services delivered)

3 full-time CCID team members (including a Night Manager), overseeing a security service provider (Iliso Protection Services) employing 24/7:  230 Public Safety Officers, 7 safety & information kiosks, 12 bicycle patrol members, 6 rapid response vehicles – all dedicated to the CCID’s area of operation  8 Law Enforcement Officers via the City’s Rent-a-Cop programme

1 full-time CCID Social Development Manager who is also a registered social worker, 2 full-time registered auxiliary social workers and 1 experienced fieldworker, liaising with:

URBAN MANAGEMENT

COMMUNICATIONS & MARKETING

(see pgs 12-13 for a full breakdown of services delivered)

(see pgs 16-17 for a full breakdown of services delivered)

5 full-time CCID team members (including 3 precinct managers, overseeing:  a cleaning service provider (J&M Cleaning) employing 52 staff manned via two-way radio and dedicated to the CCID area 24/7, as well as  the 300-strong team employed via the NGO Straatwerk and who undertake: entry-level tasks such as sweeping and cleaning; technical-level tasks such as graffiti removal, rodent baiting and gardening services; and road maintenance including repairs to potholes, curb stones, paving and bollards, maintenance of road signs and street poles, repainting road markings, and the maintenance, repair and cleaning of storm water drains.

Over the year under review, the CCID had access to the services of the Cape Town Partnership’s team of communication professionals as well as private consultants across the fields of:  Research, writing and editing (City Views monthly newspaper, CCID Annual Report, State of the Cape Town Central City Report), social media (CCID Twitter and Facebook accounts) and online management (CCID website), and distribution of collateral  Design teams specialising in targeted campaigns  Access to analytical professionals in terms of conducting surveys and the research, compilation and mapping of strategic databases across the full range of investment (development and corporate), retail, residential and government services in the CCID area of operation.

CENTRAL CITY IMPROVEMENT DISTRICT ANNUAL REPORT 2013

  

Over 20 NGO partners The City of Cape Town Social Development and Early Childhood Development Directorate The Western Cape Government Department of Social Development.


breaKing DoWn THe buDgeT

How Far does a ccid rand Go? tHe CCID reCeIVeD a BuDGet In 2013 oF JuSt unDer r38 MIllIon aS ItS portIon oF tHe CItY’S MunICIpal leVY. WHere eXaCtlY DID tHat MoneY Go?

For every r1 collected in terms of the special ratings area levy, the ccid spent: 21c 50c on Safety & Security

21c on Urban Management

7c 8c

50c 14c

tHe ccid area at a Glance in 2013

7c on Social Development 8c on communications and marketing of the area 14c on administrative costs to run the CCID service PLUS: THE TANGIBLE VS THE INTANGIBLE For every R1 spent by the CCID, the public receives as much as R5 in terms of value-added services provided in consultation, cooperation, facilitation and administration.

With its budget of just under R38 million, the CCID delivered top-up services to: 1 400 PROPERTY PARCELS and 8 500 PROPERTY RECORDS with a total municipal value of R23 BILLION generating ANNUAL RATES OF R216 MILLION within an area of 1.6km²

Over 1 200 RETAILERS & 380 000m2 retail space

Over 5 000 RESIDENTS spread across 2 900 RESIDENTIAL UNITS

Over 120 000m² of public SQUARES AND SPACES

Over 2 300 BUSINESSES and 140 000 EMPLOYEES

Over 48.5km of SIDEWALKS

Over 7.7 MILLION COMMUTERS who enter the Central City every month

Approximately 900 INFORMAL TRADERS

15 500 STUDENTS and 1 280 FACULTY & STAFF who attend 49 EDUCATIONAL INSTITUTES during term time

ANNUAL REPORT 2013 CENTRAL CITY IMPROVEMENT DISTRICT

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cHief operaTing officer’s Message

tHinKinG oUtside tHe BoX

promoting the cciD’s services as the products we provide enables our stakeholders to understand and distinguish between what it is that we do, what it is that our partners do — and then, together, how we make ours a dynamic “downtown” area.

OVER THE PAST FEW YEARS, the CCID has undergone a significant shift in seeing itself and its four departments – Safety & Security, Urban Management, Social Development, and Communications & Marketing — as a business with products that it develops to service our clients and to this end it has sought out the world’s best examples for securing, maintaining and promoting a vibrant city centre. Along with being a very active member of the International Downtown Association and

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CENTRAL CITY IMPROVEMENT DISTRICT ANNUAL REPORT 2013

attending its conference each year (with the last held in Minneapolis, USA), the CCID also annually attends the world’s largest industrial cleaning, maintenance and building services trade fair, ISSA/INTERCLEAN (this year held in Warsaw), along with the world’s largest security event, IFSEC International held in Birmingham in the UK. Making the most of these visits, the CCID uses these occasions to establish valuable networking exchanges with other participating cities across the globe and

visit similar organisations close by (this year in Washington, DC), and the knowledge we have accumulated, along with the multitude of ideas we have adapted, could be published in a book on international best practice.

service delivery witH HiGH visiBility

Often it is the way in which we adapt ideas to a South African scenario that require the most “out-of-the-box” thinking, and we have found the best ideas enable


cHief operaTing officer’s Message

OPPOSITE The CCID’s LED Lighting Project on Greenmarket Square. THIS PAGE CLOCKWISE FROM RIGHT Tasso Evangelinos, the CCID’s COO. New motorcycle bays in Adderley Street. The Street Names & Numbering Project is being rolled out across the Central City, a first for a South African CBD.

us to combine job opportunities and excellent service delivery with high-visibility branding, so that people who see us at work have the confidence and peace of mind to know they are within the CCID’s boundaries. Examples of this include the 10 red mechanical sweepers we launched this year for use in public spaces. With form and function combining, this new equipment introduces German technology that elevates the art of cleaning and, by linking them to our Urban Management “Clean Campaign” and deploying them particularly during the busiest street hours of 11h00 to 15h00, we have ensured that they are both high-profile and highly effective as cleaning machines. Likewise, we deployed two new Public Safety Kiosks this year, thanks to generous sponsorship from the Department of Community Safety, Western

Cape Government. Along with the five other security kiosks we deploy, these have been strategically placed within the CBD for both security purposes and to serve as information centres around the clock.

ever improvinG oUr prodUct lines

Many of the projects we undertake are ongoing from year-to-year, ever improving on the products these deliver. The following outline a number of those in which we are currently engaged. MOTORCYCLE AND DISABLED PARKING BAYS: Based on international models, this project began last year with research funded by the CCID to identify and map appropriate areas for 140 new motorcycle and 42 new disabled parking bays across the CBD. A joint project with the City of Cape Town,

the municipality’s Roads Department this year began to implement the CCID’s findings, with the project being the first of its kind in South Africa to undertake coordinated research followed by consolidated, systematic roll out across an entire city centre. STREET NAMES AND NUMBERING PROJECT: Also based on international examples and making the Central City the first of its kind to roll out a project of this nature, site inspections funded by the CCID were undertaken last year in particular to confirm the CBD’s complex street number sequencing. Another joint project with the City, the results were then presented in a report to the City’s Roads Department. The financial year under review then saw the signage approved and installation begun by the City, with Long, Loop and Bree Streets already completed.

GIVE RESPONSIBLY: This project, which encourages donations to be channelled to NGOs that assist the indigent rather than by giving directly to people on the street and thus exacerbating the destructive cycle of direct handouts, was improved this year by the addition of an SMS donation line being set up, and a targeted marketing campaign that humanised some of the stories of people on the streets.

STATE OF THE CAPE TOWN CENTRAL CITY REPORT: With the first of its kind having been published last year to great reception from its targeted audience as well as the media, the second report will make an appearance in February 2014 in order to document a full year in review. It will include the second year of comparative results from an online business survey conducted in the early part of 2013, as well as the results of the CCID’s

ANNUAL REPORT 2013 CENTRAL CITY IMPROVEMENT DISTRICT

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cHief operaTing officer’s Message

as WiTh everyThing We do, iT all JusT makes good business sense aT This poinT in The life of The ccid, as We sTrive To be ever evolving and ever meeTing The needs of our sTakeholders.

first-ever residential online survey. LED STREETLIGHT STRATEGY: As part of its key goals identified for improving safety during its second decade in operation, and working towards complementing the CCID’s fast-growing nighttime economy, last year was spent identifying opportunities and critical areas in the CBD that required special, cost-effective lighting initiatives. With these now identified, this year has seen not only the implementation of the project on Greenmarket Square (where lights have been installed in trees lit from 19h00 to 01h00), but the formation of working relationships with relevant private property owners on whose property further lights will be erected. It is expected that the next pilot project will be implemented before the year end. PORTABLE SMART SMOKER’S CIGARETTE POUCHES: Our initial order of 35 000 fireproof, pocket-sized cigarette pouches was distributed this year in a targeted campaign on the streets

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and in particular aimed at buildings were smokers congregate outside. Extremely well-received by the public and carrying the CCID’s 24-hour hotline number, another 35 000 have been reordered for distribution during the next year. THE “RAT PACK” RODENT BAITING PROJECT: Implemented a number of years ago, this project undertakes baiting twice a year (May and October) and is a joint project between the CCID and the City of Cape Town’s Department of Health and Environmental Affairs. It covers every street, gully, nook and cranny in the CBD, with the operation being performed by a six-man Straatwerk team (known as the “Rat Pack”) specially trained and accompanied by the City’s Department of Health & Environmental Affairs. The cost of the bait is covered by the CCID, and the operation enables regular baiting to occur – an exercise previously only able to be undertaken by the City on request or when a problem area presented itself. New methodology in the field is being invest-

CENTRAL CITY IMPROVEMENT DISTRICT ANNUAL REPORT 2013

igated to upgrade the system within the next year. RESEARCH AND THE COMPILATION OF DATABASES: For many years, the CCID has compiled numerous databases on the Central City, most of which are updated a number of times each year. More recently, a number of new surveys targeted specifically towards monitoring the economy of the CBD and investment into the area have been added to the mix and comparative analysis is now able to take place year-on-year. These surveys include: retail opinion and business surveys (conducted annually), a CBD user survey (repeated every three years), and the latest addition to the mix – a residential survey (conducted for the first time this year and to be undertaken annually.) The production of a nighttime economy database is currently being researched and mapped, in order to identify and strengthen the services this fast-growing market sector requires. THE “STASH IT, DON’T FLASH

IT” CAMPAIGN: heightening public awareness around leaving valuables in full view inside vehicles, this campaign was successfully rolled out across town with the much-valued cooperation of a number of parking garages, among them those belonging to the Growthpoint Property Group who were the first to take up the initiative. The campaign has also been adopted beyond our boundaries, with the CCID making open source materials available to fellow CIDs.

oUr BUsiness partners

Every good business has strong business partners, and ours in the Central City include our service providers who regularly rise to challenges with us. I would like to thank Iliso Security Services for the Public Safety Officers who patrol our streets as well as the behind-the-scenes staff who monitor, assess and refer the hundreds of operations that are conducted every day to keep our streets secure and our public safe. At times, the past year has been a challenge with strike action undertaken but


cHief operaTing officer’s Message

Iliso ensured that the CBD was still well-patrolled even during the strikes. The hard-working staff behind J&M Cleaning ensures that our streets are clean, particularly after the many big events that now happen across our CBD. While the City of Cape Town deploys its own excellent cleaning crews within the event area itself, it always amazes me to see how clean the streets are following a big event, especially when one considers the additional footfall that occurs. We have J&M to thank for this. We have NGO Straatwerk to thank for the 300-strong team spread across three levels of job creation, namely: entry level workers; the Dignity teams of technical-level workers who have proven themselves as willing to work towards rehabilitation; and the Straatwerk Road Maintenance team. Nothing we do would be possible without the City of Cape Town and the SAPS, and to the many people that we work with across each of these, we really value you as business partners. As we move from one financial

year to the next, we will be upping the game in our Communications & Marketing Strategy with the creation of a full-time, CCID-dedicated team based within our own operation. As we turn this corner, we would like to thank the Cape Town Partnership for their services in this field in the past (as well as for the ones they will continue to give us), but we are also excited at the possibilities that lie ahead as we move into an expanded area of education and information for our stakeholders and the highly targeted promotion of the area within the CCID boundaries. As with everything we do, it all just makes good business sense at this point in the life of the CCID, as we strive to be ever evolving and ever meeting the needs of our stakeholders.

OPPOSITE The Adderley Street Fountains. THIS PAGE CLOCKWISE FROM TOP LEFT New aspects of the “Give Responsibly” campaign; new sweepers offer ideal branding opportunities; the “Stash it, don’t flash it” campaign; new cigarette bins in the CBD; the Smart Smoker’s Pouch in use. LEFT A CCID fridge magnet provides all the important numbers for the CCID and its CBD partners.

TASSO EVANGELINOS Chief Operating Officer Cape Town Central City Improvement District

ANNUAL REPORT 2013 CENTRAL CITY IMPROVEMENT DISTRICT

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safeTY & securiTY

PRODUCING A SAFE AND

secUre central city The cciD’s safety & security teams, and in particular our public safety officers (psos), have the most visible of all the services we provide on the streets, ensuring that our stakeholders have peace of mind.

Fast Facts aBoUt tHe ccid saFety & secUrity department THE CCID DEPLOYS:

ABOVE A PSO assists a member of the public. LEFT One of the CCID’s seven public safety kiosks. OPPOSITE PAGE TOP A supervisor checks in with units on the street. OPPOSITE PAGE BELOW CCID PSOs are recognised for excellence in service delivery.

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 A 3-person, dedicated fulltime CCID-based core management team (including a Night Manager)  230 PSOs, contracted via Iliso Protection Services, to provide around-the-clock security on the streets of the CBD  12 PSOs on CCID-branded bicycle squad patrol for 24/7 rapid response  8 dedicated Law Enforcement Officers contracted via the City of Cape Town’s Rent-a-Cop programme  7 Public Safety & Information kiosks in strategic venues, manned 24/7

CENTRAL CITY IMPROVEMENT DISTRICT ANNUAL REPORT 2013

IT ALSO:  6 vehicles (5 branded and

1 unbranded) patrolling the CBD equipped with emergency supplies for traffic incidents, apprehensions and medical callouts.

 Operates its own 24/7 CCID control room with a high-tech incident mapping system and rapid response time.  Works closely with the City of Cape Town’s Cyclops “Eye in the Sky” Strategic Surveillance Unit (SSU). manned 24/7 predominantly by Metro Police with all incidents in the CBD relayed immediately to CCID response units for action.  Implements the Hero of the Month project which recognises the contributions to safety & security made by vigilant members of the public.


safeTY & securiTY

top departmental acHievements For tHe year

• A total of 7 KIOSKS are now deployed across the CBD, with the addition of two this year donated by the Department of Community Safety, Western Cape Government. Wherever these are placed, a reduction in either complaints or crime has been recorded. • A-GRADE CRIMES have been targeted over the past year, and together with the CCID’s partners at SAPS, great success has been achieved in arresting criminals and making a dent in the categories of: theft out of motor vehicles using remote jamming, chain snatching and ATM Fraud.

saFety & secUrity in nUmBers The following outlines some of the work of this team over the past financial year in numbers: arresTs MaDe TogeTHer WiTH our parTners:

assisTeD aT THe scene of MoTor-VeHicle acciDenTs:

2 268

376 times

parKing-relaTeD fines issueD: 11 842 amounting to

r4 800 650

criMe preVenTion iniTiaTiVes conDucTeD:

127 752

occasions on WHicH public assisTance Was renDereD:

1 314

assisTeD WiTH MeDical anD rescue callouTs:

227 times

Warnings issueD:

37 523

• The “STASH IT, DON’T FLASH IT” CAMPAIGN to stop thefts of visible valuables out of motor vehicles has been highly successful, with tremendous buy in from stakeholders (particularly retailers and garages) to the poster and pamphlet distribution. Open source material has also been made available to other CIDs/neighbourhoods. • A WELLNESS PROGRAMME for PSOs commenced this year, with a Wall of Excellence recognising high-achieving individuals in the field. An INTERNAL EDUCATION CAMPAIGN has also provided valuable training on topics such as social awareness, by law policies and law enforcement issues. In conjunction with the Communications & Marketing department, SENSITIVITY & MEDIA TRAINING was also conducted. • Established an UNDERCOVER UNIT in conjunction with the SAPS to undertake covert, intelligence-based crime-prevention operations. • The Department has engaged in a number of INNOVATIVE DEPLOYMENT STRATEGIES to cover the CBD’s growing footfall with the same number of staff still being deployed. • As part of the CCID’s STAKEHOLDER AWARENESS AND EDUCATION campaigns, a number of Safety Presentations have been made to schools, hotels and businesses over the past year. • With an average response time of under five minutes, the CCID Safety & Security unit is now the NUMBER 1 RESPONDENT in the CBD for the City’s Cyclops camera surveillance unit.

illegal TraDing offences DealT WiTH:

138

ANNUAL REPORT 2013 CENTRAL CITY IMPROVEMENT DISTRICT

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urban ManageMenT

TAKING STOCK OF OUR

central city

The cciD’s urban Management teams can be seen as the caretakers of our central city environment, ensuring that the spaces in between the buildings – from the streets and pavements to public areas – are in good, clean working order for the hundreds of thousands of people who pass through the cbD every day.

Fast Facts aBoUt tHe ccid UrBan manaGement department THE CCID DEPLOYS:  A 5-person, dedicated full-time CCID team of 2 supervisory managers and 3 dedicated precinct managers to oversee the CBD’s four precincts  53 professionally skilled cleaners, employed via J&M Cleaning, to top up the services offered by the City of Cape Town  A 300-strong semi-skilled cleaning and skilled road maintenance team for whom it creates job opportunities via the NGO Straatwerk.

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CENTRAL CITY IMPROVEMENT DISTRICT ANNUAL REPORT 2013


urban ManageMenT

UrBan manaGement in nUmBers The following outlines some of the work of this team over the past financial year in numbers: roaD MainTenance repairs unDerTaKen:

1 482

roaD MarKings painTeD:

255

MecHanical sWeeper proJecT: WasTe reMoVeD aMounTing To

12 060 kgs

eacH of 1 743 Drains is cleaneD approXiMaTelY:

12 times a year

amounting to 3 375 kgs of waste removed

OPPOSITE TOP & BOTTOM LEFT Straatwerk’s Road Maintenance team. OPPOSITE BOTTOM RIGHT One of 53 J&M cleaners in the CBD. THIS PAGE TOP Mechanical sweepers are deployed in public spaces. BOTTOM RIGHT Cleaning 24/7.

top departmental acHievements

inciDenTs of graffiTi reMoVeD:

1 518

illegal posTers iDenTifieD:

8 353

270 cciD cigareTTe bins cleaneD aMounTing To:

For tHe year

of cigarette butts

• After the closing of STRAATWERK’s previous premises, and a lengthy search that followed, the CCID was able to secure NEW PREMISES FOR THE NGO at the BoKaap Bath House with the assistance of the City of Cape Town.

bags filleD Via THe proVision of garDening serVices

• A multi-pronged, targeted CLEANING CAMPAIGN was launched including the portable Smart Smoker’s pocket pouch(of which 35 000 were distributed), 270 cigarette bins placed strategically across the CBD and introducing the new mechanical sweepers. As a result Cape Town has on numerous occasions been acknowledged to be THE CLEANEST CBD IN SOUTH AFRICA in user surveys and by official bodies.

1 095 kgs

4 775 kgs

• The year under review has seen a SUBSTANTIAL REDUCTION in litter, waste and illegal dumping due to the optimal partnering and operational efficiency of the CCID and City of Cape Town cleaning teams.

sTrings & sTicKers reMoVeD:

WasTe reMoVeD bY J&M cleaning To lanDfill:

illegal DuMping fines issueD: 22 amounting to

roDenT baiTing THrougHouT THe cbD bY THe 6-person raT pacK:

12 138

r22 000

802 tons

• Because of the CCID’s EFFICIENT AND ONGOING CLEANING OF STORM WATER DRAINS in the Central City, the • CBD once again (7th year in a row) saw no flooding as a • result of blocked drains during its heavy winter rainfall months – one of the only areas in Cape Town to be saved • this potentially disastrous annual occurrence.

2 times

per annum (May and october)

ANNUAL REPORT 2013 CENTRAL CITY IMPROVEMENT DISTRICT

13


social DeVelopMenT

TAKING CARE OF ALL

central city clients as is the nature of any cbD, the people to be found in central city go beyond the retailers, business people, residential complex dwellers or visitors. The homeless, unemployment and indigent also form part of a downtown, and are the clients that look to the services provided by the cciD’s social Development Department.

Fast Facts aBoUt tHe ccid social development department THE CCID DEPLOYS:  1 Fulltime Social Development Manager who is also a registered social worker  2 full-time registered auxiliary social workers and 1 experienced fieldworker

TOP Contents of a Care bag. MIDDLE Consulting with a client on the street. BOTTOM Receiving a donation from Wimpy. RIGHT Care bags at The Carpenter’s Shop. OPPOSITE The SMS line is an important new component of “Give Responsibly”.

14

CENTRAL CITY IMPROVEMENT DISTRICT ANNUAL REPORT 2013

In addition, it has an ongoing working partnerships with many of the NGOs and medical facilities that service the area across the full spectrum of adults and children, among them:

                   

District Six Haven Shelter Napier Street Haven Shelter St Anne’s Home ACVV The Ark The Carpenter’s Shop Booth Memorial Hospital Robbie Nurock Hospital Somerset Hospital Salesians Institute Scalabrini Centre Nazareth House Heaven’s Shelter Service Dining Rooms The Homestead Projects for Street Children Ons Plek Youth Solutions Africa Straatwerk Western Cape Street Childrens’ Forum Western Cape Street People’s Forum


social DeVelopMenT

social development in nUmBers The following outlines some of the work of this team over the past financial year in numbers:

293 clienTs

Were assisTeD, aMong THese:

91 adults

2000 care bags

Were sourceD anD DisTribuTeD To recipienTs aT parTner ngos in noVeMber 2012 anD MaY 2013

received services at shelters

donation diversity Over the past year, many Central City stakeholders have generously given a diverse range of donations to the CCID for distribution to partner NGOs. For example: • Hotels TSOGO SUN and TAJ CAPE TOWN donated clothing, bedding, towels, slippers, toiletries and coffee mugs for the Service Dining Rooms • Real estate agency PAM GOLDING CITY BOWL and the TOMORROW’S SOCIETY (in conjunction with VIDA e CAFFÈ) donated clothing • WIMPY ST GEORGE’S MALL donated lamb sausage

17 adults

were assisted to health care facilities

40 adults

were referred to straatwerk for an employment opportunity

600 cHrisTMas bags

Were sourceD anD DisTribuTeD To sTraa⁄erK anD THe serVice Dining rooMs for THeir enDof-Year cHrisTMas funcTions

For tHe year

58 adults

were assisted

436 pairs of Men sHoes anD 150 pairs of laDies

sHoes Were sourceD anD DisTribuTeD To recipienTs aT parTner ngos

87 children

were assisted, largely through preventative services rendered to day strollers and by referrals to the Department of social Development, ngos or contact made with familes

• The CCID also facilitated the DONATION OF FURNITURE AND FITTINGS from the full refurbishing of the PROTEA HOTEL IN SEA POINT to partner NGOS

top departmental acHievements

were reunited with family

8 mothers with children

• MEDIA 24 donated coffee sachets and washing powder

THe giVe responsibilY caMpaign’s neW sMs DonaTion line collecTeD

r13 832.50

In addition to the services rendered and the donations sourced, the following were among the Social Development Department’s highlights for the year: • The Department completed an in-depth SURVEY OF HOMELESS PEOPLE IN THE CENTRAL CITY, in partnership with the Cape Town Partnership and City of Cape Town, which supported the information previously gathered by CCID fieldworks about the number of individuals living on the streets. The survey also identified the hotspot areas as well as the changing dynamics on the streets, highlighting once again the preventative and rehabilitation services that are now so critically needed. • CCID fieldworkers have had considerable success with PREVENTATIVE MEASURES when identifying adolescent day strollers and new children who come into the Central City looking for opportunities to beg and make money, and who are often from communities and families with severe poverty and limited food at home. Regular meetings with the Western Cape Government Department of Social Development have ensured that, as according to the Children’s Act, these adolescents are afforded the necessary protection and family supportive services. • The CCID fieldworkers have also had considerable success in their relationships with MOTHERS USING CHILDREN TO BEG for money and food, with successful referrals to the Department of Social Development for family services.

ANNUAL REPORT 2013 CENTRAL CITY IMPROVEMENT DISTRICT

15


coMMunicaTions & MarKeTing

COMMUNICATING

oUr prodUct oFFerinG communications and marketing is all about getting the service message “out there” and in the case of the cciD, that means providing central city stakeholders, as well as anyone who may be passing through as a visitor or looking to invest, with the information they need, when they need it. it’s also about creating educational awareness of the cciD’s campaigns across safety & security, urban Management and social Development initiatives.

Fast Facts aBoUt tHe ccid commUnications & marKetinG During the period under review, the CCID worked through the Cape Town Partnership’s Communications & Marketing Department (and in turn its service providers in design, printing, database and survey production, and distribution), as well as through the services of a researcher shared between the two organisations, in order to produce the following collateral:  The publication and launch of the first-ever State of the Cape Town Central City Report, with 3 000 copies printed for distribution loc-

16

ally, nationally and internationally, and available online as a digimag and downloadable pdf. The publication was also distributed at the IDA Conference in Minneapolis where it was well received  Development of the architecture and implementation of the CCID’S dedicated new website (www.capetowncid.co.za)  Development and implementation of the SMS facility and activation elements of the “Give Responsibly” Campaign introducing illustrated characters based on real people. 30 000 brochures were printed and distributed, along with 1 000 street pole posters.

CENTRAL CITY IMPROVEMENT DISTRICT ANNUAL REPORT 2013

 Development and implementation of the highly successful “Stash it, don’t flash it” Campaign to deter valuables being left in plain sight in motor vehicles. 300 posters for retailers and 1 000 street pole posters were produced  Published the 2013 edition of the popular Best of Cape Town Central City Guide in conjunction with Eat Out. 80 000 copies were printed for distribution  Research, implementation and analysis of the results of an online business survey  Ongoing creation of a CCID image library  Production and publication of the monthly newspaper

City Views, of which 28 000 are distributed to CBD stakeholders and 22 000 to surrounding residential areas.  Development and distribution of 5 000 CCID “Useful numbers” fridge magnets that provide businesses and residents with practical contact information for a variety of City service departments in the CBD.  Printing and distribution of 15 000 copies of the CCID “Safety Tips” brochure, predominanately used by Safety & Security.  Development and rollout of sensitivity & media training for Safety & Security Public Safety Officers.


coMMunicaTions & MarKeTing

in tHe media

Following the appointment of FTI Communications in the previous financial year to concentrate primarily on delivering the “Open to Business” message, the following PR values were achieved through print, broadcast and online media coverage during the period under review: MEDIA TYPE MagaZine neWspaper raDio Web TV TOTALS

EXPOSURE

PR VALUE

ARTICLES/INTERVIEWS

1 082 128

r2 095 157.25

15

15 855 748

r2 704 888.20

62

r

739 104

41

r3 077 241.43

133

7 153 524 57 426 024 13 000 81 530 424

r

86 625.69

R8 703 016.57

1 252

promotional events • Planned and successfully co-hosted with the Cape Town Partnership a visit (July 2012) by TIM TOMPKINS, PRESIDENT OF THE TIMES SQUARE ALLIANCE IN MANHATTAN (NEW YORK, USA) which focused on public space management and the utilisation of space. • Hosted the CCID’s first PROPERTY BROKERS’ BREAKFAST (March 2013) for 130 participants which included, amongst others, a presentation on Future Cities by leading business futurist, Anton Musgrave of FutureWorld • Hosted WALKING TOURS FOR THE MEDIA, including City Press, Business Report and Finweek. • The CCID co-hosted, with the Cape Town Partnership, a STAKEHOLDERS EVENT on the night of the COMMUNITY JAZZ FESTIVAL in March on Greenmarket Square.

OPPOSITE Readers enjoying City Views. ABOVE Meticulous reproduction takes place at the printers. CLOCKWISE FROM TOP LEFT The CCID produces a number of publications.

prodUct review The CCID’s monthly newspaper CITY VIEWS: • received a Merit Award at the International Downtown Association (IDA) Achievement Awards • received awards in various categories at the SA Publishing Forum Awards, namely: Excellence in design Excellence in communications Excellence in writing Best publication with a small budget (2nd place) Best newspaper (3rd place)

ANNUAL REPORT 2013 CENTRAL CITY IMPROVEMENT DISTRICT

17


reTail, resiDenTial & business surVeY resulTs

HiGHliGHts

From ccid sUrveys during the course of the past financial year, the ccid conducted a number of surveys. these included: 

A BUSINESS SURVEY, conducted online by Sentinel Consulting in the first half of 2013, which outlined the perceptions of the CBD by the business community who operate strictly within the CCID boundaries. This follows on the CCID’s own survey conducted in 2012 and enables the CCID to measure any shifts in perception, attitude or experience from one year to the next. All businesses in the CBD with an email address were invited to participate, and a good sample representation of 256 (13.3%) respondents participated (as against 244 who participated in 2012.) A RESIDENTIAL SURVEY conducted online by the CCID (via SurveyMonkey) of residents living in and around the CCID

area (with 69% living directly within the CCID boundaries.) This is the first survey of its kind, and 220 respondents (of the over 5 000 residents who currently reside in the CBD, according to the latest SA Census) participated in what qualifies as a “dipstick” survey. A RETAIL OPINION SURVEY conducted by Geocentric Information Systems, who have been conducting this survey twice a year since 2009. A sample of 225 retailers (25%) based within the CCID boundaries is selected for this survey and are interviewed against a set questionnaire drawn up in conjunction with the CCID, and against which topical questions are added.

tHe FollowinG are HiGHliGHts From eacH sUrvey 1 tHe retail opinion sUrvey OPINION ON CURRENT BUSINESS STATUS (comparing October 2012’s results to May 2013) Question: “Based on actual sales, how do you experience business within the current economic climate?” Result: There has been a steady increase in business confidence from October 2012 to May 2013, and a drop in those that felt business was declining.

October 2012

May 2013

Business as usual

37%

43%

Growth in business

21%

24%

Decline in business

42%

33%

BUSINESS CONFIDENCE – WILL YOU STILL BE IN THE CBD ONE YEAR FROM NOW? Question: “Looking to a year from now, do you see yourself still wanting to be operating in the CBD?” Result: The responses show an overwhelming 84% positive response.

18

CENTRAL CITY IMPROVEMENT DISTRICT ANNUAL REPORT 2013


reTail, resiDenTial & business surVeY resulTs

2

tHe BUsiness sUrvey

The overall analysis of this survey showed a positive sentiment about the CBD as a destination for business with respondents saying that the CBD is successfully being developed and refurbished to promote the area as a business hub that enables growth. Knowledge of the CCID remains high and its services are rated in a very positive light. LEVEL OVERALL OF SATISFACTION BEING IN THE CBD 

Percentage of businesses who were delighted about being in the CBD rose from 81% in 2012 to 86% in 2013.

RATING OVERALL OF THE STATE OF CLEANLINESS IN THE CBD 

Percentage of businesses who recognised and appreciated the cleanliness of the CBD rose from 73% in 2012 to 77% in 2013.

RATING ASPECTS RELATED TO SAFETY & SECURITY 

3

Percentages of businesses who rated safety & security overall as good to excellent rose from 68% in 2012 to 71% in 2013. 74% feel safe to walk freely around the CBD.

More than 50% of residents have now lived in the Central City for more than 3 YEARS.

TOP THREE REASONS FOR LIVING IN THE CBD   

Businesses who were aware of the “Give Responsibly” campaign rose significantly from 40% in 2012 to 52% in 2013.

MAINTAINING STANDARDS 

Cape Town continues to grow as a good place to do business with positive views on maintaining standards rising from 69% in 2012 to 75% in 2013.

AWARENESS AND KNOWLEDGE OF THE CCID 

98% of all businesses demonstrated knowledge and awareness of the CCID in some way.

tHe residential sUrvey

LENGTH OF TIME AS A CBD RESIDENT 

AWARENESS OF THE “GIVE RESPONSIBLY” INITIATIVE

Being close to work The entertainment options on offer Easy access to other Cape Town neighbourhoods.

TOP FIVE PUBLIC SPACES IN THE CBD     

The Company’s Garden St George’s Mall Greenmarket Square The Fanwalk (Riebeek Street) Church Square

AWARENESS OF THE CCID’S PRESENCE IN THE CBD 

94% of all respondents were aware of the CCID in the CBD, with our Public Safety Officers having the highest awareness (84%), followed by Urban Management cleaning staff (63%) and the “Give Responsibly” campaign (37%).

ANNUAL REPORT 2013 CENTRAL CITY IMPROVEMENT DISTRICT

19


financials

annUal Financial statements

CAPE TOWN CENTRAL CITY IMPROVEMENT DISTRICT

[ASSOCIATION INCORPORATED UNDER SECTION 21] [REG NO: 1999/009132/08]

FOR THE YEAR ENDED 30 JUNE 2013 AUDITED

conTenTs // DIRECTORS’ REPONSIBILITY STATEMENT 21 / DIRECTORS’ REPORT 22 / INDEPENDENT AUDITOR’S REPORT 23 / STATEMENT OF COMPREHENSIVE INCOME 24 / STATEMENT OF FINANCIAL POSITION 25 / STATEMENT OF CHANGES IN RESERVES 26 / STATEMENT OF CASH FLOWS 27 / NOTES TO THE FINANCIAL STATEMENTS 28 / DETAILED INCOME STATEMENT 38 //

20

CENTRAL CITY IMPROVEMENT DISTRICT ANNUAL REPORT 2013


financials

directors’ responsiBility statement The directors are responsible for the preparation and fair presentation of the annual financial statements of Cape Town Central City Improvement District NPC, comprising the statement of financial position at 30 June 2013, and the statemens of comprehensive income, changes in reserves and cash flows for the year then ended, and the notes to the financial statements, which include a summary of significant accounting policies and other explanatory notes, in accordance with International Financial Reporting Standards and the requirements of the Companies Act of South Africa. In addition, the directors are responsible for preparing the directors’ report. The directors are also responsible for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and for maintaining adequate accounting records and an effective system of risk management, as well as the preparation of the supplementary schedules included in these annual financial statements. The directors have made an assessment of the Company’s ability to continue as a going concern and have no reason to believe the business will not be a going concern in the year ahead. The auditor is responsible for reporting on whether the financial statements are fairly presented in accordance with the applicable financial reporting framework.

APPROVAL OF THE ANNUAL FINANCIAL STATEMENTS The annual financial statements of Cape Town Central City Improvement District, as identified in the first paragraph, were approved by the board of directors and are signed on its behalf by:

R Kane

JM Rippon

(Chairman)

(Director)

Date

Date

DECLARATION BY COMPANY SECRETARY In my capacity as company secretary, I hereby confirm, in terms of the Companies Act, 2008, that for the year ended 30 June 2013, the Company has lodged with the Registrar of Companies all such returns as are required of a Company in terms of this Act and that all such returns are true, correct and up to date.

Webber Wentzel (Company Secretary)

Date:

ANNUAL REPORT 2013 CENTRAL CITY IMPROVEMENT DISTRICT

21


financials

directors’ report

for THe Year enDeD 30 June 2013 The directors have pleasure in presenting their report for the year ended 30 June 2013.

BUSINESS ACTIVITIES The Company provides additional security, cleansing, maintenance services, marketing and social development in the Cape Town City area.

GENERAL REVIEW OF OPERATIONS The business and operations of the Company during the year under review continued as in the past year and we have nothing further to report thereon. The financial statements adequately reflect the results of the operations of the Company for the year under review and no further explanations are considered necessary.

SHARE CAPITAL The Company does not have share capital.

SUBSEQUENT EVENTS TO THE REPORTING DATE There are no posts reporting events that need to be reported.

DIRECTORS The following directors who held office during the accounting year and/or at the date of this report:

Director F Jacobs D Stoll R Kane (Chairperson) CEP Keefer RN Harris NK Ramasar HC Truter JM Rippon MN Flax RT Yach JD Leibman R van Wyk T Capstick-Dale I Ho-Yee G Fisher G Elliot A Varacchia

Date Appointed

28 August 2012

13 November 2012 13 November 2012 16 April 2013

SECRETARY Webber Wentzel

Business address:

Postal address:

15th Floor, Convention Tower

PO Box 3667

Heerengracht

Cape Town, 8000

Foreshore, Cape Town, 8001

22

Date Resigned

CENTRAL CITY IMPROVEMENT DISTRICT ANNUAL REPORT 2013


financials

independent aUditor’s report

To THe MeMbers of cape ToWn cenTral ciTY iMproVeMenT DisTricT npc We have audited the financial statements of Cape Town Central City Improvement District NPC, which comprise the statement of financial position at 30 June 2013, and the statements of comprehensive income, changes in reserves and of cash flows for the year then ended, and the notes to the financial statements, which include a summary of significant accounting policies and other explanatory notes, as set out on pages 24 to 37.

DIRECTORS’ RESPONSIBILITY FOR THE FINANCIAL STATEMENTS The Company’s directors are responsible for the preparation and fair presentation of these financial in accordance with International Financial Reporting Standards and the requirements of the Companies Act of South Africa, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

AUDITOR’S RESPONSIBILITY Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

OPINION In our opinion, the financial statements present fairly, in all material respects, the financial position of Cape Town Central City Improvement District NPC, at 30 June 2013 and its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards and the requirements of the Companies Act of South Africa.

OTHER MATTERS Without qualifying our opinion, we draw attention to the fact that supplementary information set out on pages 38 to 39 does not form part of the financial statements and is presented as additional information. We have not audited these schedules and accordingly we do not express an opinion thereon.

OTHER REPORTS REQUIRED BY THE COMPANIES ACT As part of our audit of the financial statements for the year ended 30 June 2013 we have read the Directors’ report for the purpose of identifying whether there are material inconsistencies between this report and the audited financial statements. This report is the responsibility of the directors. Based on reading this report we have not identified material inconsistencies between this report and the audited financial statements. However, we have not audited this report and accordingly do not express an opinion thereon.

KPMG Inc.

Per: BR Heuvel Chartered Accountant (SA) Registered Auditor Director ANNUAL REPORT 2013 CENTRAL CITY IMPROVEMENT DISTRICT

23


financials

statement oF compreHensive income for THe Year enDeD 30 June 2013

Note

Revenue Other income

2

Expenditure

2012 R

37 710 208

35 499 308

70 452

125 643

(37 273 830)

(35 517 952)

Surplus from operations

3

506 830

106 999

Finance income

4

177 937

189 236

684 767

296 235

-

-

684 767

296 235

Net surplus for the year Other comprehensive income for the year

Total comprehensive income for the year

24

2013 R

CENTRAL CITY IMPROVEMENT DISTRICT ANNUAL REPORT 2013


financials

statement oF Financial position for THe Year enDeD 30 June 2013

Note

2013 R

2012 R

6

696 510

585 573

5 234 795

4 968 845

1 832 655

918 583

Cash and cash equivalents

3 402 140

4 050 262

Total assets

5 931 305

5 554 418

5 571 582

4 886 815

359 723

667 603

5 931 305

5 554 418

Assets Non current assets Plant and equipment Current assets Receivables

7

Reserves and liabilities Reserves Accumulated surplus

Current liabilities Payables Total reserves and liabilities

8

ANNUAL REPORT 2013 CENTRAL CITY IMPROVEMENT DISTRICT

25


financials

statement oF cHanGes in reserves for THe Year enDeD 30 June 2013

Accumulated surplus R Balance at 1 July 2011 Total comprehensive income for the year

296 235

Balance at 30 June 2012

4 886 815

Balance at 1 July 2012

4 886 815

Total comprehensive income for the year Balance at 30 June 2013

26

4 590 580

CENTRAL CITY IMPROVEMENT DISTRICT ANNUAL REPORT 2013

684 767 5 571 582


financials

statement oF casH Flows for THe Year enDeD 30 June 2013

Note

2013 R

2012 R

11

(560 602)

282 849

177 937

189 236

(382 665)

472 085

(382 456)

(400 289)

116 999

-

Net cash outflow from investing activities

(265 457)

(400 289)

Net (decrease)/increase in cash and cash equivalents

(648 122)

71 796

4 050 262

3 978 466

3 402 140

4 050 262

Cash flows from operating activities Cash (utilised)/generated by operations Interest received Net cash (outflow)/inflow from operating activities

Cash flows from investing activities Additions to plant and equipment Disposals from plant and equipment

Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

8

ANNUAL REPORT 2013 CENTRAL CITY IMPROVEMENT DISTRICT

27


financials

notes to tHe Financial statements for THe Year enDeD 30 June 2013 1. Reporting entity Cape Town Central City Improvement District NPC (the “Company”) is a company domiciled in South Africa. The address of the Company’s registered office is 10th Floor, The Terraces, 34 Bree Street, Cape Town.

1.1

BASIS OF PREPARATION 1.1.1

Statement of compliance The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) and the interpretations adopted by the International Accounting Standards Board (IASB) and the requirements of the Companies Act of South Africa.

1.1.2

Basis of measurement The financial statements are prepared on the historical cost basis, except for financial instruments that are carried at fair value. These financial statements are prepared on the going concern basis. The accounting policies set out below have been applied consistently to all periods presented in these financial statements.

1.1.3

Use of estimates and judgements The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.

Significant accounting policies 1.2

PLANT AND EQUIPMENT (i)

Owned assets Plant and equipment are stated historical cost less accumulated depreciation and accumulated impairment losses. When parts of an item of plant and equipment have different useful lives, they are accounted for as separate items of plant and equipment.

28

(ii)

Subsequent costs The Company recognises in the carrying amount of an item of plant and equipment the cost of replacing part of such an item when that cost is incurred if it is probable that the future economic benefits embodied with the item will flow to the Company and the cost of the item can be measured reliably. All other costs are recognised in profit or loss as an expense when incurred.

(iii)

Depreciation Depreciation is charged to profit or loss on a straight line basis over the estimated useful lives of each part of an item of plant and equipment.

CENTRAL CITY IMPROVEMENT DISTRICT ANNUAL REPORT 2013


financials

notes to tHe Financial statements [cont] for THe Year enDeD 30 June 2013

Significant accounting policies [cont] 1.2

PLANT AND EQUIPMENT [CONT]

The useful lives used are: Motor vehicle

5 years

Furniture

6 years

Fittings

3 years

Office equipment

6 years

Computer hardware

3 years

Computer software

2 years

Residual values, if significant, are reassessed annually.

1.3

IMPAIRMENT

The carrying amounts of the Company’s assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognised in the statement of comprehensive income.

(i)

Calculation of recoverable amount The recoverable amount of other assets is the greater of their net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For an asset that does not generate largely independent cash inflows, the recoverable amount is determined for the cash-generating unit to which the asset belongs.

(ii)

Reversals of impairments An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

ANNUAL REPORT 2013 CENTRAL CITY IMPROVEMENT DISTRICT

29


financials

notes to tHe Financial statements [cont] for THe Year enDeD 30 June 2013

Significant accounting policies [cont] 1.4

FINANCIAL INSTRUMENTS Measurement Non-derivative financial instruments Non-derivative financial instruments comprise receivables, cash and cash equivalents and payables. Non-derivative financial instruments are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition non-derivative financial instruments are measured as described below. A financial instrument is recognised if the Company becomes party to the contractual provisions of the instrument. Financial assets are derecognised if the Company’s contractual rights to the cash flows from the financial assets expire or if the Company transfers the financial asset to another party without retaining control or substantially all risks and rewards of the asset. Financial liabilities are derecognised if the Company’s obligations specified in the contract expire or are discharged or cancelled. Non-derivative financial instruments are measured at amortised cost using the effective interest rate method, less any impairment losses. Subsequent to initial recognition these instruments are measured as set out below. Receivables Receivables originated by the Company are stated at cost less allowance for doubtful debts. Cash and cash equivalents Cash and cash equivalents are measured at fair value. Payables Payables are recognised at amortised cost.

30

1.5

REVENUE

1.6

FINANCE INCOME

1.7

OTHER INCOME

1.8

COMPARATIVE FIGURES

Revenue comprises levy income from ratepayers, excluding VAT which is collected from the City of Cape Town.

Finance income comprises interest income on funds invested. Interest income is recognised as it accrues, using the effective interest method.

Other income includes project income, management fee income and sundry income. Project income consists of various dedicated projects funded externally. Sundry income includes allowances for non-delivery of services.

Where material, comparative figures are reclassified to conform with the current year presentation.

CENTRAL CITY IMPROVEMENT DISTRICT ANNUAL REPORT 2013


financials

notes to tHe Financial statements [cont] for THe Year enDeD 30 June 2013

2013 R

2012 R

46 619

-

Project income

-

35 209

Sundry income

23 833

90 434

70 452

125 643

80 180

73 500

Depreciation

201 139

239 082

Operating lease charges - property and equipment

471 710

490 832

1 199 868

1 110 990

177 937

189 236

2. Other income Gain on sale of fixed assets

3. Surplus from operations is arrived at after taking into account: Auditor’s remuneration - current year

Management fees and operation costs – Cape Town Central City Partnership

4. Finance income Interest received on bank balance

5. Income tax expense Provision has not been made for current taxation, or deferred taxation as the Company is an approved Public Benefit Organisation in terms of Section 30 of the Income Tax Act and is exempt from income tax in terms of section 10(1)(cN) of the Income Tax Act.

ANNUAL REPORT 2013 CENTRAL CITY IMPROVEMENT DISTRICT

31


financials

notes to tHe Financial statements [cont] for THe Year enDeD 30 June 2013 6. Plant and equipment Cost R

Accumulated depreciation R

Carrying amount R

1 053 549

(418 783)

634 766

149 070

(144 019)

5 051

Fittings

87 213

(71 564)

15 649

Office equipment

39 216

(23 156)

16 060

Computer hardware

513 466

(491 588)

21 878

Computer software

66 357

(63 251)

3 106

1 908 871

(1 212 361)

696 510

Motor vehicles

919 726

(415 965)

503 761

Furniture

149 070

(141 766)

7 304

Fittings

87 213

(48 508)

38 705

Office equipment

29 724

(18 612)

11 112

Computer hardware

491 325

(466 634)

24 691

Computer software

61 972

(61 972)

-

1 739 030

(1 153 457)

585 573

Owned assets

2013 Motor vehicles Furniture

2012

32

CENTRAL CITY IMPROVEMENT DISTRICT ANNUAL REPORT 2013


financials

notes to tHe Financial statements [cont] for THe Year enDeD 30 June 2013 6. Plant and equipment (cont) Carrying amount at beginning of year R

Additions R

Disposals R

Depreciation R

Carrying amount at end of year R

503 761

346 438

(70 380)

(145 053)

634 766

7 304

-

-

(2 253)

5 051

Fittings

38 705

-

-

(23 056)

15 649

Office equipment

11 112

9 492

-

(4 544)

16 060

Computer hardware

24 691

22 141

-

(24 954)

21 878

Computer software

-

4 385

-

(1 279)

3 106

585 573

382 456

(70 380)

(201 139)

696 510

236 740

391 642

(124 621)

503 761

Furniture

10 415

-

-

(3 111)

7 304

Fittings

62 516

-

-

(23 811)

38 705

Office equipment

15 524

-

-

(4 412)

11 112

Computer hardware

98 449

8 647

-

(82 405)

24 691

Computer software

722

-

-

(722)

-

424 366

400 289

-

(239 082)

585 573

Owned assets

2013 Motor vehicles Furniture

2012 Motor vehicles

ANNUAL REPORT 2013 CENTRAL CITY IMPROVEMENT DISTRICT

33


financials

notes to tHe Financial statements [cont] for THe Year enDeD 30 June 2013 7. Receivables 2013 R

2012 R

1 800 554

918 583

11 914 949

10 748 654

Allowance for doubtful debts

(11 914 949)

(10 748 654)

Prepaid expenses - insurance

32 101

-

1 832 655

918 583

Cape Town Central City Partnership NPC Levy income retained by the City of Cape Town included in receivables

The Company receives levy income from the City of Cape Town (“the City”) which the City collects from ratepayers. In terms of the agreement, the City of Cape Town retains a reserve of 3% of all payments due to the CID. This reserve covers any shortfall which may be suffered by the City of Cape Town as a result of non-payment or short payment of the CID levy by property owners.

8. Payables Accruals

118 629

561 575

Other Payables

154 146

-

86 948

106 028

359 723

667 603

VAT payable

34

CENTRAL CITY IMPROVEMENT DISTRICT ANNUAL REPORT 2013


financials

notes to tHe Financial statements [cont] for THe Year enDeD 30 June 2013 9. Financial risk management The Company has exposure to the following risks from its use of financial instruments: • credit risk • liquidity risk This note presents information about the Company’s exposure to each of the above risks, the Company’s objectives, policies and processes for measuring and managing risk. Further quantitative disclosures are included throughout these financial statements. The directors have overall responsibility for the establishment and monitoring of the Company’s risk management policies and procedures which have been established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and procedures are reviewed regularly to reflect changes in market conditions and the Company’s activities. Credit risk Credit risk is the risk of financial loss to the Company if a counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables and cash and cash equivalents. An allowance for impairment is established based on managements’ estimate of identified incurred losses in respect of specific trade and other receivables. Bad debts identified are written off as they occur. Reputable financial institutions are used for investing and cash handling purposes. Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation. Fair value of financial instruments The Company’s financial instruments consist mainly of cash at the bank and cash equivalents, receivables and payables. The estimated net fair value at which financial instruments are carried on the statement of financial position at 30 June 2013 have been determined using available market information and appropriate valuation methodologies, but are not necessarily indicative of the amounts that the Company could realise in the normal course of business.

9.1 CREDIT RISK

At reporting date there were no significant concentrations of credit risk.

The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the statement of financial position.

ANNUAL REPORT 2013 CENTRAL CITY IMPROVEMENT DISTRICT

35


financials

notes to tHe Financial statements [cont] for THe Year enDeD 30 June 2013 9.1 CREDIT RISK (CONT) The maximum exposure to credit risk at the reporting date is: 2013 R

2012 R

Receivables

1 800 554

918 583

Cash and cash equivalents

3 402 140

4 050 262

5 202 694

4 968 845

9.2 Liquidity risk The following are contractual maturities of financial liabilities, including interest payments and excluding the impact of netting agreements Carrying amount

Contractual cash flows

6 months or less

6 - 12 months

2-5 years

More than 5 years

(272 775)

(272 775)

(272 775)

-

-

-

(561 575)

(561 575)

(561 575)

-

-

-

30 June 2013 Non-derivative financial liabilities Payables

30 June 2012 Non-derivative financial liabilities Payables

36

CENTRAL CITY IMPROVEMENT DISTRICT ANNUAL REPORT 2013


financials

notes to tHe Financial statements [cont] for THe Year enDeD 30 June 2013 10. Related parties 10.1 IDENTITY OF RELATED PARTIES The Company’s income is received in the form of levy income paid to the Company by the City of Cape Town on behalf of the rate payers. The directors are listed in the directors’ report. Cape Town City Centre Partnership NPC.

10.2 MATERIAL RELATED PARTY TRANSACTIONS Management fees and operational costs to Cape Town Central City Partnership – Note 3 Levy income received from the City of Cape Town – R 37 710 208 (2012: R35 499 308) Trade receivable from Cape Town Central City Partnership NPC - Note 7

11. Cash generated by operations 2013 R

2012 R

506 830

106 999

Gain on sale of plant and equipment

(46 619)

-

Depreciation of plant and equipment

201 139

239 082

Cash generated by operations before working capital changes

661 350

346 081

Increase in trade and other receivables

(914 072)

(519 598)

(Decrease)/increase in trade and other payables

(307 880)

456 366

(560 602)

282 849

Surplus from operations Adjustment for:

12. Standards and Interpretations not yet effective There are Standards and Interpretations in issue that are not yet effective. The directors have considered all of these Standards and Interpretations and found none to be applicable to the Company and therefore expect none to have a significant impact on future financial statements.

13. Subsequent events to the reporting date There are no posts reporting events that need to be reported.

ANNUAL REPORT 2013 CENTRAL CITY IMPROVEMENT DISTRICT

37


financials

detailed income statement for THe Year enDeD 30 June 2013

2013 R

2012 R

37 710 208

35 499 308

Other income

248 389

314 879

Interest received

177 937

189 236

70 452

125 643

37 958 597

35 814 187

(37 273 830)

(35 517 952)

80 180

73 500

-

183 000

1 554

1 480

213 402

231 099

6 530 888

6 154 987

32 503

34 425

6 770

870

201 139

239 082

3 608

5 920

68 206

91 609

Gifts

1 648

6 682

Insurance

7 645

45 342

Management fees and salaries

7 249 562

6 581 326

Marketing

2 391 826

2 266 767

Revenue

Sundry income

Expenditure Auditor’s remuneration Bad debts Bank charges Cellphone costs Cleaning Computer Expenses Courier Depreciation Electricity and water Entertainment

38

CENTRAL CITY IMPROVEMENT DISTRICT ANNUAL REPORT 2013


financials

detailed income statement [cont] for THe Year enDeD 30 June 2013 Office expenses

50 021

79 798

Other expenses

3 541

7 339

Printing and stationary

150 101

155 549

Rent expense

471 710

490 832

Social Services

959 326

551 411

Staff Costs

168 378

99 589

18 434

8 428

Security expense

17 835 400

17 254 824

Telephone and fax

50 000

40 995

Travel

74 924

140 552

Urban management fees

703 064

772 546

Net surplus for the year

684 767

296 235

Subscriptions

ANNUAL REPORT 2013 CENTRAL CITY IMPROVEMENT DISTRICT

39


THe faces of THe cciD

tHe ccid in 2013

BACK, FROM LEFT TO RIGHT: Kerry Harwin (PA to COO), Mark Williams (Social Development), Paul Lotter (Urban Management), Carlisle Marankey (Urban Management), Muneeb Hendricks (Safety & Security), Headman Siralarala (Social Development), Alec van de Rheede (Safety & Security), Arnold Smith (Safety & Security), Lynn Thomas (Urban Management), Andrew Fleming (Research), Aziza Patandin (Communications & Marketing). FRONT, LEFT TO RIGHT: Tasso Evangelinos (COO), Pat Eddy (Social Development), Dean Ramjoomia (Social Development), Carola Koblitz (Communications & Marketing), Mmiselo Ntsime (Urban Management). MISSING: Richard Beesley (Urban Management)

tHe ccid Board Rob Kane (Chair)

Abu Varacchia

Charles Keefer

David Stoll

Faieda Jacobs

Gary Fisher

Grant Elliot

Henry Truter

Imraan Ho-Yee

Julian Leibman

Martin Rippon

Nawal Ramasar

Riaan van Wyk

Richard Harris

Tamra Capstick-Dale

Theodore Yach

40

CENTRAL CITY IMPROVEMENT DISTRICT ANNUAL REPORT 2013


acKnoWleDgeMenTs

witH oUr tHanKs THE CCID’S SUCCESS IS DUE to the wonderful partnerships in which it operates, and the teams that are responsible for the work on the ground. As we close this report, we would like to express our thanks. The first of these goes to my own colleagues at the CCID — the dynamic individuals that work within Safety & Security, Urban Management, Social Development and with the incorporation this year of our new, CCID-dedicated Communications & Marketing division. As always, there have been goodbyes, this year to precinct manager Sarel Strydom, but we welcome, in stronger numbers as well as names, the new additions to our Urban Management team in Lynn Thomas (assistant manager), and both Carlisle Marankey and Paul Lotter to the precincts. We also welcome Carola Koblitz (manager) and Aziza Patandin (production & projects) as members of the new Communications & Marketing team. The next is the CCID Board, whose members provide invaluable guidance and I say a heartfelt thanks to our Chairperson Rob Kane and members Theodore Yach, Faieda Jacobs, Richard Harris, Nawal Ramasar, Tamra Veley, Charles Keefer, Julian Leibman,

Martin Rippon, David Stoll, Henry Truter, Grant Elliot, Gary Fisher, Imraan Ho-Yee and Riaan van Wyk as well as Abu Varacchia, whom we welcomed onto the Board this year. We also thank Cllr Taki Amira and Paul Williamson who are seconded onto the Board by the City of Cape Town. A special word of thanks is extended to our Ward Councillor, Dave Bryant. Among our most important partners are our service providers, who daily walk the streets of the CBD with us, matching us step for step. These include Managing Director Sharon Fortune and her team at J&M Cleaning Services, Hannes van der Merwe who heads up our NGO partner, Straatwerk, and Louis Rademeyer who, through Iliso Protection Services, keeps our public safe and secure. We also extend our thanks to the men and women who form part of these operations at ground level. Working with our new Communications & Marketing team are our PR, design and publication partners FTI Consulting, New Media Publishing and Design Infestation, but as always we would also like to thank the members of the hardcopy, online and broadcast media, especially those who understand the work we do and help us to put it “out there”. Our relation-

ship with all of you is extremely important to us. We know the past year has delivered many challenges along with the successes, and to this end we particularly acknowledge the work that has been done towards social development, especially among our NGO partners who include The Homestead, Ons Plek, Salesians Institute, Western Cape Street Children’s Forum, Street Peoples’ Forum, The Carpenter’s Shop, the Scalabrini Centre, the Haven Shelter, the Cape Town Drug Counselling Centre, St Anne’s, ACVV, the Booth Memorial Hospital, the Robbie Nurock and Chapel Street Community Day Hospitals, The Ark and U-turn. As always, our most crucial and collaborative partner is the City of Cape Town, and there are many people we should be thanking by name if we had the space. We hope those mentioned in the following departments in turn extend their thanks to their teams: Johan de Beer and the Roads Department; Bettie Leedo of the Department of Health and Environmental Affairs; Pauline McConney of City Parks; Claire McKinnon of the Cleaning Department; Paul Williamson and Janice Adams of the Business Area Management Department; Fred Williams and his

colleagues at Water & Sanitation; Pat Abrahams and his colleagues at Electricity Services; Sydney Scheepers and his colleagues at Public Lighting; Eddie Scott, Joepie Joubert and Runan Rossouw of the Inter Service Liaison Department; and Richard Bosman and his entire team at Law Enforcement. We would also like to thank our other important partners in Safety & Security, namely Brigadier Colin Govender and his SAPS team. In conclusion, I would also like to thank the Cape Town Partnership, under the leadership of CEO Bulelwa Makalima Ngewana, and the divisions within that organisation with which we collaborate closely. But the final thanks goes to those who enable us to be a vibrant “downtown” – the stakeholders and particularly the ratepayers of the Cape Town Central City. You are truly our greatest partners in sharing the vision of having a Central City that is “safe, clean, caring and open for business.” TASSO EVANGELINOS

credits WHERE TO FIND US:

EDITORIAL TEAM:

CCID, 10th Floor, The Terraces, 34 Bree Street, Cape Town 8001 Tel: +27 21 419 1881; email info@capetowncid.co.za

Editor: Carola Koblitz (CCID) Managing editor: Aziza Patandin (CCID) Art director: Sam Bainbridge (Design Infestation) Photographic contributers: Anita van Zyl, Bruce Sutherland (courtesy of the City of Cape Town), Ed Suter, Lisa Burnell, Production: Design Infestation Printer: Fairstep Graphic Design & Printing Research, data and surveys: Andrew Fleming (CCID), Gene Lohrentz (Geocentric Information Systems), Anneke Greyling (Sentinel Consulting)

www.capetowncid.co.za COPYRIGHT: No part of this publication may be reproduced without prior permission of the publishers (the CCID) and the reference “Cape Town Central City Improvement District” as photo and text source. No liability is assumed for unsolicited text and photos. Printed in the Republic of South Africa.

ANNUAL REPORT 2013 CENTRAL CITY IMPROVEMENT DISTRICT

41


There are huge returns to be gained from an area and its economic stakeholders if they together build common brand platform identity, narratives and a shared market strategy. But the key brand asset that a city has is its people and its organisations. Greg Clarke Internationally renowned city and regional development advisor, speaker and facilitator “Telling the Business Story�, Cape Town, July 2013

CCID 2013 Annual Report  
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