CID Initial Public Meeting: Understanding Community Improvement Districts

CID Initial Public Meeting 7PM | 18 AUGUST 2021

Agenda Welcome Annika Larsen 1. Introduction and Background Ed Brand & Neil Isdale 2. Panel Discussion Impact of CIDs Annika Larsen 3. Panel: Samuel Seeff, Jacques Weber, JP Smith, Francois Laurence Fresnaye CID Business Plan Overview 4. Public Safety Ryan Janks i. Cleaning & Greening Andreas Hauke ii. Social Responsibility Mike Philippides iii. Budget & Financial Impact Ed Brand & Neil Isdale 5. Management & Governance Ed Brand & Neil Isdale 6. Voting & Establishment Process Andreas Hauke 7. Questions Annika Larsen & Dan Stillerman 8.

Introduction & Background Ed Brand & Neil Isdale

What is a CID? A sustainable, well-regulated funding mechanism that gives communities control over how the additional rates levied on property owners are directed. Geographically defined contiguous area (refer proposed area) All property owners in the area fund via additional rates (some exemptions) Rates are collected by the city, ring-fenced 100% for the area Funds are paid to the Community managed NPC per the budget Community defines needs and how funds are spent in the area Focus is broader than Public Safety includes Cleaning, Greening & Social Highly regulated and transparent to benefit the community

Why in Fresnaye? Public safety incidents have created the public perception that more should be done to secure and monitor the area. General negative perception of public space and parks cleanliness. 47 other CIDs in the city working and providing benefits to their communities we will suffer by comparison if we don t act. Random survey of residents indicated overwhelming support for establishment (86%) and provided direction for community needs. 85% indicated they love the area & wouldn t want to live elsewhere. #WELOVEFRESNAYE

Common Concerns & Questions My rates are already ridiculous based on inflated property values. Why should I pay more? Can the City not just deliver the services needed How do I know that the money will be properly managed & allocated to the area? I already have security for my home & there is a street initiative in my street so why is this necessary?

Proposed Area The defined area includes the suburb of Fresnaye in its entirety along its cadastral boundaries which forms the largest part of the defined area. To the South West, the upper portion of Bantry Bay (De Wet Road, Ocean View Drive, Arcadia Road) that can only be accessed by road through Fresnaye via Ocean View Drive is included as a logical and adjacent extension which does not increase the road access points to the area. Includes 1,277 households. Detailed list of affected properties is in Annexure C of the business plan at www.fresnayecid.co.za

Interim Steering Committee Ed Brand 4yrs BA (Hons) LLB; MBA (Cambridge) - 20yrs in financial services across New York, London, Zurich & SA Chevon Feldman 8 yrs Medical Doctor currently completing a Masters in Public Health Joel Gamsu 22 yrs IT Professional, 22+ years in enterprise IT solutions, services and infrastructure management Andreas Hauke 1 yr Vienna Business School; Entrepreneur Production Company & Agency. 15+ yrs Marketing Experience Neil Isdale 8 yrs CA (SA) ; Masters in Finance (INSEAD) 20yrs in financial services across New York, Sydney, London & SA Ryan Janks 10 yrs Medical Doctor Mike Philippides 14 yrs Architect 20+yrs in the industry Gaynor Rayne 19 yrs Marketing Professional 20+yrs in financial services, logistics, education and retail

Panel Discussion Chair: Annika Larsen Samuel Seeff Jacques Weber Francois Laurence JP Smith

Business Plan: Public Safety Ryan Janks

Public Safety Challenge 97% of respondents ranked public safety as their major concern 39% reported being a direct/indirect victim of crime (123 incidents incl. housebreaking, car theft, assault, indecent exposure, mugging) 75% wouldn't allow their kids to walk alone in the neighbourhood (87% of respondents have kids under 18) Only 50% are comfortable walking alone in the neighbourhood 29% feel safe in the neighbourhood

Public Safety Solution 97% view cameras (CCTV & LPR), patrols & tactical response as key to address challenge Focus on public safety private space is generally secured so focus is on securing the streets/neighbourhood/public space Like having an alarm/beams at your house this would be the same as adding an electric fence to secure the perimeter, add another layer of defense/deterrent and early warning of potential threat 24/7 Cameras (Overview, Mountain, LPR) enhance currently non-existent neighbourhood perimeter security, creating a virtual boundary monitor movement in, out and through the neighbourhood proactive alert of vehicles connected to crime moving through the area through license plate recognition cameras

Public Safety Solution 24/7 Control Room Monitoring technology-enabled smart detection analytical intelligence to identify threats/alert dedicated control room operators technology acts as a virtual trip wire alerting operator to unusual behaviour & is back-up to anything potentially missed 24/7 Patrols & Response vehicle & foot patrols provide additional 24/7 visible, proactive, crime prevention in the area focused on public safety extra eyes on the ground for public safety providing real time intelligence/information (along with cameras) 24/7 response to control room alerts & flexibility to deploy patrols to public safety hotspots/areas of high pedestrian traffic Dedicated City Law Enforcement Officer dedicated weekday coverage from 6am to 9pm to enforce by-laws in the area to signal rule of law ability to process infringements either through criminal justice/social support infrastructure ensuring other patrolling/response resource is not absorbed with these issues

Business Plan: Cleaning & Greening Andreas Hauke

Cleaning & Greening Challenge Only 20% of respondents satisfied with the general cleanliness of the area Dissatisfaction with: maintenance of verges/channels next to the streets litter/dog fouling frequency of grass cutting illegal dumping urban decay Only 13% of respondents satisfied with state of public spaces/parks (87% of respondents have kids under 18)

Cleaning & Greening - Solution Focus: ensure urban environment of this naturally beautiful location is maintained at the right level halt decay & provide public spaces which are clean/well maintained in which residents can recreate & take pride Actions: regularly clean pavements/channels next to streets provide bins for litter & dog foul liaise with CTC on C3 fault report mechanism upgrade of parks/public spaces incl. mountain access points design, landscape & maintain existing planted areas trimming overgrown trees/plants replant areas overgrown with alien species with indigenous species upgrading children s play facilities & introducing exercise facilities traffic calming measures Create employment opportunities within the dedicated cleaning team linking with CID Social Responsibility aspects

Business Plan: Social Responsibility Michael Philippides

Social Responsibility 81% of respondents: raised homelessness as a source of concern in the area indicated they would like to see Fresnaye positively contributing to social initiatives Actions: partner with established NGOs (Project Hope, Straatwerk, Haven) & support financially dedicated fieldworker in the area to identify homeless who require social support (& notifying public patrols of any criminal elements) collaborate with Dept of Social Development & Early Childhood Development employment opportunities through CID Cleaning & Greening actions create awareness around homelessness & other social issues education, adult learning, skills, training support shelter, food, clothing Holistic solutions where Fresnaye can positively impact the lives of others while also improving the neighborhood will be actively encouraged/sought out

Business Plan: Finance & Governance Ed Brand & Neil Isdale

Budget & Finances Budget Process was driven by the results and priorities of the community survey Survey Responses Drove Budget Process Budget Allocation % Public Safety 62% Cleaning & Environment 10% Social Responsibility 4% Administration 18% Projects & Capex 3% Provision for Bad Debts 3%

Budget & Finances A detailed business plan and budget is available for review at www.fresnayecid.co.za High Level income & expense plan Total Year 1 to 5 Year 1 Year 2 Year 3 Year 4 Year 5 7,225,000 7,694,625 8,194,776 8,727,436 9,294,719 41,136,556 Income from add. Rates 7,225,000 7,694,625 8,194,776 8,727,436 9,294,719 41,136,556 Total Expenditure 980,000 1,043,700 1,111,541 1,183,791 1,260,737 5,579,769 Employee Related 5,500,000 5,857,500 6,238,238 6,643,723 7,075,563 31,315,024 Core Business 10,267 10,267 10,267 11,933 11,933 54,667 Depreciation 5,000 5,000 5,000 5,000 5,000 25,000 Repairs & Maintenance 310,750 293,674 312,762 333,092 354,745 1,605,023 General Expenditure 164,233 253,645 271,125 263,074 307,899 1,259,976 Projects 38,000 25,000 63,000 Capital Expenditure 216,750 230,839 245,843 261,823 278,842 1,234,097 Bad Debt Provision 3% Note: a 6.5% annual escalation has been applied

Impact to me? Additional property rates to be collected by the City of Cape Town and used to fund the FresnayeCID budget Everyone pays / obligatory Based on property value 2021/2022 Normal Rates at R 0,006030 of property value per annum for residential properties 2022/2023 Additional Rate at R 0,000393 of property value per annum for residential properties Approximately a 6.5% addition to existing rates Next slide for detail Property owners receiving partial or full relief in respect of rates will enjoy full exemption

Financial Impact PRELIMINARY MODELLING OF FINANCIAL IMPACT - RESIDENTIAL PROPERTIES (0.000393) 2022/23 PROPOSED BUDGET 2022/23 MUNICIPAL PROPERTY VALUE ANNUAL CONTRIBUTION (VAT EXCL.) ANNUAL CONTRIBUTION (VAT INCL.) MONTHLY CONTRIBUTION (VAT EXCL.) MONTHLY CONTRIBUTION (VAT INCL.) 10 000 000 3 930.00 4 519.50 327.50 376.63 7 225 000 15 000 000 5 895.00 6 779.25 491.25 564.94 20 000 000 7 860.00 9 039.00 655.00 753.25 AVERAGE: MEDIAN: 15 946 304 13 300 000 6 266.90 5 226.90 7 206.93 6 010.94 522.24 435.58 600.58 500.91

Financial Impact PRELIMINARY MODELLING OF FINANCIAL IMPACT - NON-RESIDENTIAL PROPERTIES (0.001138) 2022/23 PROPOSED BUDGET 2022/23 MUNICIPAL PROPERTY VALUE ANNUAL CONTRIBUTION (VAT EXCL.) ANNUAL CONTRIBUTION (VAT INCL.) MONTHLY CONTRIBUTION (VAT EXCL.) MONTHLY CONTRIBUTION (VAT INCL.) 10 000 000 11 380.00 13 087.00 948.33 1 090.58 7 225 000 15 000 000 17 070.00 19 630.50 1 422.50 1 635.88 20 000 000 22 760.00 26 174.00 1 896.67 2 181.17 AVERAGE: 10 031 787 MEDIAN: 11 416.17 11 607.60 13 128.60 13 348.74 951.35 967.30 1 094.05 1 112.40 10 200 000

Management & Governance FresnayeCID as a registered NPC will need to comply with Companies Act and other regulatory frameworks FresnayeCID will be managed by a salaried full-time manager, taking direction from: Board of directors Elected at an Annual General Meeting Directors will be allocated to a portfolio Non remunerated Annual audits Oversight from City of Cape Town

Voting Process & Next Steps Andreas Hauke

Vote YES to support the business plan by 24 Sept 2021 Voting Process 1,277 properties in the FresnayeCID area 767 need to vote YES to achieve the more than 60% support to lodge an application One property One Vote How to vote: Generate voting form online Scan and email to info@fresnayecid.co.za Deadline for all voting forms to be handed in: 24 Sep 2021 Take note: Questions: info@fresnayecid.co.za Resolution form to be signed for legal entity owners with company registration documents Proxy form required if a natural person is represented Voting Instructions and Video available on www.fresnayecid.co.za

Next Steps and Timeline Action Item Initial meeting with the City officials Confirmation of steering committee Define the area to be considered Arrears check performed by the City If step 4 positive, proceed to undertake urban management survey (questionnaire) Compile urban management survey and have it approved by the City Obtain responses from property owners (20% sample). Obtain responses from passers-by (supplementary to urban management survey) Evaluate responses and determine what the needs are; if feedback positive the process can continue Prepare a business plan to address the needs in the area CID Department of the City to verify the business plan i.t.o. Legal Compliance Arrange public meeting and present business plan Obtain property owners consent forms (need more than 60%) If more than 60% of property owners support is obtained prepare application (motivational report etc.) and submit to the City City internal processes City will require the advertisement of the application 60-day comment period soliciting of objections. Arrange public meeting before expiry of the 60-day comment period. If no objections further internal process (budgeting processes etc. submission to Council for approval) If approved activities and commence on 1 July 2022 Post establishment activities Establish non-profit company Elect office bearers Get bank account, SARS and other matters in order Appoint staff and service providers to deliver additional services. Status Complete Complete Complete Complete Complete Complete Complete Complete Complete Complete Complete In Progress Next Step Target Date Stream # 1 2 3 4 5 6 7 8 9 10 11 12 13 Initiate Survey Develop Plan 18-Aug-21 Build Support 14 15 16 17 18 19 20 21 22 23 24 Next Step 30-Sep-21 Objection Process 1-Jul-22 Establish