1. Parow Industria CID/SRA ANNUAL CHAIRPERSON / MANAGERS REPORT 2013 / 2014

2. INTRODUCTION The Parow CID is a non-profit organization, providing a “top up” service in security and cleansing since 1 st August 2001 The CID model is based on international practice that is aimed at preventing degeneration of cities and industrial areas into urban decay

3. MANAGEMENT & OPERATIONS The CID/SRA is managed by a Board of Directors elected by its members. The services provided incorporate the following:- Security / Safety Cleansing Urban Management initiatives Social Intervention initiatives Marketing

4. ACHIEVEMENTS / SUCCESSES TO DATE Transformed to a well managed area Decrease in crime 24 hr Security Patrols Regular integrated crime prevention operations Regular training

5. State of art control room 18 dome camera surveillance system Effective radio communication system

6. Two Mobile trailers donated by Dept. Community Safety Cameras mounted onto one of the trailers with on-board DVR recording system Controller deployed inside the trailer to monitor cameras

7. EMERGENCIES/ EVACUATION PLANNING Implementation of emergency plan & procedures guideline Regular practice of plan incorporating relevant emergency response services Updating of Hazardous Materials information

10. CLEANSING Decrease in presence of illegal dumping A co-ordinated cleansing service comprising of four workers Improved/maintained gardens and verges by business owners

11. Support to the City of Cape Town in diverting waste from landfill through a re-cycling project:- -Including learners from a local school -Previously unemployed people from the community -Participation by business owners where proceeds are channeled to a local school

12. Marketing with media coverage of newsworthy events. Regular updating of website www.parowindustriacid.co.za www.parowindustriacid.co.za Establishment of Security Service Providers Forum

13. Current projects receiving attention:- Landscaping of communal areas Development of the wetland Securing of CID boundaries Establishment of electronic business network directory Implementation of formal trading plan for informal traders

14. FINANCIAL In accordance with a Finance Agreement that exists between the Parow Industria Improvement District (CID/SRA ) and the City of Cape Town (COCT), the COCT pays over 97% of the annual budget to the CID/SRA in 1/12 installments and retains 3% as a provision for bad debts. Accordingly, the COCT paid over R2, 849 665.00 (excl VAT) and retained R88, 134.00 (excl VAT) for the 2013/2014 financial year. Retention of R340, 627.30 was refunded to CID/SRA in 2013/2014

15. FINANCIAL (CONT) The summary of retention transactions for the 2013/14 Financial year is as follows:- PAROW Opening balance excl. VATR796 365.95 Add: Retention 2013/14 excl. VAT R88 134.00 Over/under collection SRA additional rates R195 663.10 Less: Retention re-funded-R340 627.30 Closing Balance excl. VATR739 535.75 VATR103 535.01 Total RetentionR843 070.76

16. CLOSING Success of the CID/SRA is a joint venture that holds a benefit for all in that resources are pooled to facilitate a collective benefit inclusive of:- -Well managed area -Shared communal pride -Safety and social responsibility -Access to joint initiatives incorporating re- cycling, job creation etc. These benefits translate into increased property values and capital investments.

17. PAROW INDUSTRIA CID IMPLEMENTATION PLAN 2015/2020

18. PAROW INDUSTRIA CID OBJECTIVE:- SECURE A SAFE, ATTRACTIVE AND CLEAN BUSINESS AREA Action Steps Performance indicators Responsibility Success indicators

19. PROGRAMS INCORPORATED IN IMPLEMENTATION PLAN Management and operations Security/ Law Enforcement Cleansing Urban management Social intervention Marketing

20. PAROW INDUSTRIA IMPROVEMENT DISTRICT ASSOCIATION 5 YEAR BUDGET AS PER BUSINESS PLAN 2015/162016/172017/182018/192019/20 EXPENDITURE R R R R R 1. Employee Related 470 964 12.6% 498 142 12.4% 526 950 12.3% 557 487 12.1% 589 856 11.9% Salaries 413 400 438 204 464 496 492 366 521 908 UIF 5 114 5 421 5 746 6 091 6 456 Transport allowance 18 000 Bonus Provision 34 450 36 517 38 708 41 030 43 492 2. Core Business 2 433 982 64.9% 2 579 420 64.4% 2 733 585 63.7% 2 897 001 62.8% 3 070 221 62.2% Cleansing Services 308 142 326 630 346 228 367 002 389 022 Environmental Upgrading (Greening, landscaping, recycling, etc.) 10 000 Security Services - CCTV Network/wireless link rental 90 948 96 405 102 189 108 320 114 819 Security Services - CCTV monitoring 679 539 720 311 763 530 809 342 857 903 Security Services 1 345 353 1 426 074 1 511 638 1 602 337 1 698 477 Social Upliftment

21. 3. Depreciation 293 829 7.8% 311 329 7.8% 335 079 7.8% 366 329 7.9% 403 829 8.2% 4. Repairs and Maintenance 73 000 1.9% 77 380 1.9% 82 023 1.9% 86 944 1.9% 92 161 1.9% 5. Services Accounts ex CCT 600 0.0% 636 0.0% 674 0.0% 714 0.0% 757 0.0% 6. Interest Paid 0.0% 7. General Expenditure 262 894 7.0% 278 668 7.0% 295 389 6.9% 313 114 6.8% 331 899 6.7% Accommodation (Rent) 18 360 19 462 20 630 21 868 23 180 Accounting fees 8 170 8 660 9 180 9 731 10 315 Administration and management fees Auditor's remuneration 22 000 23 320 24 719 26 202 27 774 Avertising 5 798 6 146 6 515 6 906 7 320 Bank charges 20 800 22 048 23 371 24 773 26 260 Computer expenses (including Website) 2 300 2 438 2 584 2 739 2 903 Contingency / Sundry 12 000 12 720 13 483 14 292 15 150 Donations 24 000 25 440 26 966 28 584 30 299 Entertainment 5 000 5 300 5 618 5 956 6 313 Insurance 48 996 51 936 55 052 58 355 61 856 Lease rental on equipment 32 700 34 662 36 742 38 947 41 284 Marketing and promotions Meeting expenses 13 000 13 780 14 607 15 483 16 412

22. Motor vehicle expenses 650 689 730 774 820 Newsletter expenses Office security Operational costs Postage 1 000 1 060 1 124 1 191 1 262 Printing and stationery 10 500 11 130 11 798 12 506 13 256 Protective clothing 5 500 5 830 6 180 6 551 6 944 Secretarial duties 13 000 13 780 14 607 15 483 16 412 Staff welfare (tea, Coffee, etc.) 6 400 6 784 7 191 7 623 8 080 Subscriptions Telephone and fax 12 720 13 483 14 292 15 150 16 059 Training Traveling Other: Specify

23. 8. Operational Projects - 0.0% - - - - Provide Detail 9. Capital Projects - 0.0% - - - - Provide Detail 10. Capital Expenditure (PPE) 100 000 2.7% 140 000 3.5% 190 000 4.4% 250 000 5.4% 300 000 6.1% Office Furniture Office Equipment Computer Equipment CCTV Cameras 100 000 140 000 190 000 250 000 300 000 Electric Fence Security Equipment Vehicles Other: Specify

24. 11. Future Provision - 0.0% - - - - Assets Operational Project Capital Project Other: Specify 12. Bad Debt Provision 3% 112 431 3.0% 120 172 3.0% 128 774 3.0% 138 297 3.0% 148 105 3.0% TOTAL EXPENDITURE 3 747 700 100.0 % 4 005 747 100.0 % 4 292 474 100.0 % 4 609 886 100.0 % 4 936 828 100.0 % INCOME R R R R R 1. Revenue - SRA Add Rates -3 747 700 100.0 % -4 005 747 100.0 % -4 292 474 100.0 % -4 609 886 100.0 % -4 936 828 100.0 % 2. Other: Specify 0.0% TOTAL INCOME -3 747 700 -4 005 747 -4 292 474 -4 609 886 -4 936 828 (SURPLUS) / SHORTFALL - - - - - BUDGET GROWTH 19.89%6.89%7.16%7.39%7.09% Approved Budget for 2014/153125 824

25. PAROW INDUSTRIA CID IMPLEMENTATION PLAN 2015/2016

26. PAROW INDUSTRIA CID OBJECTIVE:- SECURE A SAFE, ATTRACTIVE AND CLEAN BUSINESS AREA Action Steps Performance indicators Responsibility Success indicators

27. PROGRAMS INCORPORATED IN IMPLEMENTATION PLAN Management and operations Security/ Law Enforcement Cleansing Urban management Social intervention Marketing

28. PAROW INDUSTRIA IMPROVEMENT DISTRICT ASSOCIATION 2015/16 PROPOSED BUDGET As per Business PlanProposed BudgetVariance EXPENDITURE R R R 1.Employee Related 470 964 12.6% 470 964 12.6% - 0.0% Salaries 413 400 - UIF 5 114 Transport allowance 18 000 Bonus Provision 34 450 - 2.Core Business 2 433 982 64.9% 2 433 982 64.9% - 0.0% Cleansing Services 308 142 - Environmental Upgrading (Greening, landscaping, recycling, etc.) 10 000 - Security Services - CCTV Network/wireless link rental 90 948 - Security Services - CCTV monitoring 679 539 - Security Services 1 345 353 - Social Upliftment - - -

29. 3. Depreciation 293 829 7.8% 293 829 7.8% - 0.0% 4. Repairs and Maintenance 73 000 1.9% 73 000 1.9% - 0.0% 5. Services Accounts ex CCT 600 0.0% 600 0.0% - 6. Interest Paid - 0.0% - - #DIV/0! 7. General Expenditure 262 894 7.0% 262 894 7.0% - 0.0% Accommodation (Rent) 18 360 - Accounting fees 8 170 - Administration and management fees - - - Auditor's remuneration 22 000 - Avertising 5 798 - Bank charges 20 800 - Computer expenses (including Website) 2 300 - Contingency / Sundry 12 000 - Donations 24 000 - Entertainment 5 000 - Insurance 48 996 - Lease rental on equipment 32 700 - Marketing and promotions - - - Meeting expenses 13 000 - Motor vehicle expenses 650 - Newsletter expenses - - - Office security - - - Operational costs - - - Postage 1 000 - Printing and stationery 10 500 - Protective clothing 5 500 - Secretarial duties 13 000 - Staff welfare (tea, Coffee, etc.) 6 400 - Subscriptions - - - Telephone and fax 12 720 - Training - - - Traveling - - - Other: Specify - - - 8. Operational Projects - 0.0% - - #DIV/0! Provide Detail - - - - - - - - - - - - - - - 9. Capital Projects - #DIV/0! - - Provide Detail - - - - - - - - - - - - - - - 10. Capital Expenditure 100 000 2.7% 100 000 2.7% - 0.0% Office Furniture - - - Office Equipment - - - Computer Equipment - - - CCTV Cameras 100 000 - Electric Fence - - - Security Equipment - - - Vehicles - - - Other: Specify - - - - - -

30. Provide Detail - - - - - - 9. Capital Projects - #DIV/0! - - Provide Detail - - - - - - - - - - - - - - - 10. Capital Expenditure 100 000 2.7% 100 000 2.7% - 0.0% Office Furniture - - - Office Equipment - - - Computer Equipment - - - CCTV Cameras 100 000 - Electric Fence - - - Security Equipment - - - Vehicles - - - Other: Specify - - - - - -

31. 11.Future Provision - 0.0% - - #DIV/0! Assets - - - Operational Project - - - Capital Project - - - Other: Specify - - - 12.Bad Debt Provision 3% 112 431 3.0% 112 431 3.0% - 0.0% TOTAL EXPENDITURE 3 747 700 #DIV/0! 3 747 700 #DIV/0! - 0.0% INCOME R R R 1.Revenue - SRA Add Rates -3 747 700 100.0% -3 747 700 100.0% -0.0% 2.Other: Specify - - - TOTAL INCOME -3 747 700 - (SURPLUS) / SHORTFALL - - - Budget Split BUSINESS PLANPROPOSED BUDGETVARIANCE Commercial 0% - Residential 0% - Total Budget -0% - -

32. THE END

33. SECURITY REPORT & PROPOSAL: INSTALLATIONOF PHASE IV TO SURVEILLANCE SYSTEM Addressing crime is a T E A M effort T = Together E = Everyone A = Achieves M = More We cannot address what we do not know

34. CONCERNS 2013/2014 BURGLARY BUSINESS SERIOUS AND VIOLENT CRIME PRESENCE OF TROLLEYS AND WHEELIE BINS TRAFFIC VIOLATIONS

35. INHIBITING FACTORS FAILURE TO REPORT INCIDENTS LACK OF PRO-ACTIVENESS LACK OF EFFECTIVE COMMUNICATION INSUFFICIENT STREET LIGHTING PRESENCE OF DENSE BUSH AND TREES LIMITATIONS IN TERMS OF CAMERA SYSTEM CAPABILITIES

36. INTEGRATED EXPECTATIONS REPORT ALL CRIME RELATED INCIDENTS TO SAPS AND CID EFFECTIVE POLICING AND INCREASED VISIBILITY REGULAR CHECKS OF ALARMS/ COMMUNICATION SYSTEMS PARTICIPATION IN JOINT SECURITY SERVICE PROVIDERS FORUM PARTICIPATION IN CID’S INTEGRATED HANDHELD COMMUNICATION SYSTEM PRO-ACTIVE APPROACH: STREET LIGHTING/ NUMBERING/ NAMES OPTIMAL USE OF CID CAMERA SYSTEM/ PATROL VEHICLES/ MOBILE TRAILER UNITS EXERCISE STRICT ACCESS CONTROL INSTALLATION OF PASSIVE ALARMS IN ROOF TOPS EDUCATION OF EMPLOYEES REGARDING CID ACTIVITIES DISPLAY SAPS AND CID CONTROL ROOM NUMBERS AND EMERGENCY GUIDELINE THROUGHOUT COMPANY

37. COMPARATIVE STATISTICS 2001 – JULY 2014 RE-ACTIVE SERVICES (Unaudited statistics based on reports received from security service provider, SAPS and business owners Crime 19992000200120022003200420052006200720082009201020112012 20132014 ROBBERY1114 101368356426210 ATTEMPTED ROBBERY 111334332 BREAK IN’S656147612135151918251815332734 ATTEMPTED BREAK IN 13667188273710518 THEFT OUT OF M/V153161246647 THEFT OF M/V111233251153 Vehicle Hi-jacking1

38. PRO-ACTIVE SERVICES 2001 - 2013 SERVICETotal OPEN GATES/WINDOWS CHECKED645 FIRES200 ACCIDENTS274 STANDBY WHILE OWNERS LOCK UP1 083 ASSISTANCE TO STRANDED VEHICLES500 SUSPICIOUS VEHICLES CHECKED837 SUSPICIOUS PERSONS CHECKED993 TROLLEYS CHECKED8 010 BURST PIPES/BLOCKED DRAINS REPORTED279 HORSE + CARTS CHECKED194 ANIMAL CRUELTY52 PREVENTION OF LITTERING66 PREVENTION OF DUMPING711 LITTER REMOVAL BY WASTE BUSTERS/CLEANERS 4 311 Refuse bags & 2 513 bins FAULTY STREET LIGHTS REPORTED1 623 ALARMS CHECKED7 503

40. PAROW INDUSTRIA CID FINANCIAL PRESENTATION 2013/2014 BY MR C.J SCHELTEMA

44. Statement of Financial Performance R,000 2012 2013 Budget Revenue 2,705 3,183 2,679 There-off retention 140 402 - Expenses Total 2,651 2,983 2,679 Security related 1,897 2,055 1,999 Employee related 569 686 487 Surplus54 200 -

45. ACTUAL BUDGET 2012/13 INCOME Levies received collected via COCT2 678 5832 761 426 Less Bad Debt Provision Retained82 843 Interest20 472 Donation (Trailer)80 900 Retention Refund402 368 TOTAL3 182 3232 678 583 EXPENDITURE OPERATIONAL EXPENDITURE Employee Related405 733352 933 Contracted Services:- Cleansing Camera Monitoring Security Services Environmental Upgrading (greening) Social Upliftment (Dare to Dream) 279 552 550 086 1 148 559 - 134 832 519 287 1 196 669 5 622 Depreciation246 329150 000 Repairs and Maintenance110 061133 156 Service Accounts ex CCT500 General Expenditure:- Auditors remuneration Bank Charges Gifts and donations Insurance Marketing / Promotion/Advertising Printing and stationery Lease rentals Sundry Expenses Telephone and Fax 25 250 17 559 28 794 40 364 6 353 28 764 41 698 39 707 13 689 21 357 11 701 15 956 29 784 2 831 6 360 38 293 40 602 13 078 TOTAL EXPENDITURE2 982 4982 678 583 Total comprehensive income for the year199 825 PAROW INDUSTRIA IMPROVEMENT DISTRICT ASSOCIATION NPC INCOME STATEMENT FOR PERIOD 1 JULY 2012 TO 30 JUNE 2013 R,000

47. PROPOSED UTILIZATION OF ACCUMULATED SURPLUS 2013/2014 EXPENDITUREAPPROVED BY MEMBERS 2012 AGMPROPOSED REALIGNMENT 1. Operational Projects429,382180,290 Security32,760 Camera Monitoring98, 250 Maintenance24, 445 Cleansing27,01524, 835 Upliftment of area402,367- 2. Capital Projects27,015130, 000 Landscaping27,015 Network upgrade130, 000 3. Assets146, 107 Office Furniture Office Equipment Computer Equipment Motor Vehicles Cameras146, 107 TOTAL EXPENDITURE456,397

48. PROPOSED BUDGET 2014/2015 As per approved business plan & budget (R) Proposed Budget (R) EXPENDITURE 1.Employee Related393, 893 Salaries360, 871 UIF2,723 Bonus Provision30, 299 2.Contracted Services2, 166, 5932, 153, 959 Cleansing services291, 239 Environmental Upgrading (Greening, Landscaping, recycling, etc,) 6, 317 Camera Monitoring562, 055 Security Services1, 300, 665 Social Upliftment (Dare to dream)6, 317 3. Depreciation150, 000118,117 4. Repairs & Maintenance120, 646 5. Services Accounts ex CCT585 6. Interest Paid--

49. PROPOSED BUDGET 2014/2015 7. General Expenditure200,332244,849 Accommodation (Rental)14,66618, 000 Accounting fees7, 000 Advertising3, 3505, 000 Auditor’s remuneration23, 996 Bank Charges13, 24519, 000 Function and meetings9, 090 Gifts and donations18, 673 Insurance33,71565,460 Lease rental on equipment27, 16030, 100 Marketing and promotions3,182 Printing and stationery7, 576 Sundry Expenses8,259 Telephone and fax14, 695 Travelling22, 72518, 000

50. PROPOSED BUDGET 2014/2015 8. Capital Expenditure Office Furniture Office Equipment Computer Equipment Cameras Specify Other 9. Bad Debt Provision 3%93,775 TOTAL EXPENDITURE3,125,824

51. FINANCIAL (CONT) The summary of retention transactions for the 2012/13 Financial year is as follows:- PAROW Balance of accumulated retention account as at 30 June 2013 VAT incl. 907 857.18 Less SRA Arrears>30 Days as at 30 June 2013 -390 103.69 Difference between retention and arrears 517 753.49 75% of difference available for refund to SRA (VAT incl.) 388 315.12 Less VAT 47 687.82 75% of difference available for refund to SRA (VAT excl.) 340 627.30

52. PROPOSED UTILIZATION OF ACCUMULATED SURPLUS 2014/2015 EXPENDITUREPROPOSED BUDGET 1. Operational Projects262, 077 Security33, 879 Camera Monitoring180, 715 Maintenance20, 087 Cleansing27,396 2. Capital Projects- 3. Assets78, 550 Office Furniture- Office Equipment- Computer Equipment- Motor Vehicles- Cameras78, 550 TOTAL EXPENDITURE340, 627

53. 5 YEAR BUDGET 2010/112011/122012/132013/142014/15 EXPENDITURE 1.Employee Related312,000330,720350,563371,597393,893 Salaries288,000305,280323,597343,013363,594 Bonus24,00025,44026,96628,58430,299 2.Contracted Services1,613,2681,710,0641,812,6681,921,4292,036,714 Security1,048,0681,110,9521,177,6091,248,2661,323,162 CCTV monitoring445,200471,912500,227530,241562,055 Cleansing120,000127,200134,832142,922151,497 3. Other442,194477,291515,352556,639601,442 Audit fees19,00820,14821,35722,63823,996 Camera system214,170235,587259,146285,061313,567 Dare to Dream Campaign5,0045,3045,6225,9596,317 Function/Meetings7,2007,6328,0908,5759,090 Landscaping5,0045,3045,6225,9596,317 Marketing2,5202,6712,8313,0013,182 Printing & Stationery6,0006,3606,7427,1477,576 Sundry153,648162,867172,639182,997193,977 Tlephone11,64012,33813,07813,86314,695 Traveling18,00019,08020,22521,43922,725 4. Bad Debt Prov.73,22077,87982,84388,13493,775 TOTAL EXPENDITURE2,440,6822,595,9542,761,4262,937,7993,125,824 INCOME2,440,6822,595,9542,761,4262,937,7993,125,824 BUDGET GROWTH9.92%6.36%6.37%6.39%6.40%