Observatory Community

WHAT IS A CID?

A CID is a City Improvement District established by agreement of businesses and/or residents in a particular area to ‘top up' services provided by the City Council. The City will charge a CID levy over and above the normal rates charges, payable by all ratepayers in the area. Among the extra services provided by a CID are security and cleansing. The proposed OBSID will include both a residential and a commercial component.
A detailed Business Plan has been worked out and is available on this website. Hard copies will also be available at the Obs library, where residents may make their own photocopies.
CIDs have been successfully set up in other areas of Cape Town, such as Sea Point, the City of Cape Town, Camps Bay, Green Point and Woodstock. We are following in their footsteps but the longer we delay and the more they succeed, the greater the pressure from undesirable elements we will have to endure

WHAT ARE THE ESTIMATED COSTS?

The CID levy is expressed as a cent in the rand of the rated value of the properties in the area. It will appear as a separate item on the monthly municipal account sent out by the City Council. There are around 500 commercial properties in Observatory with a total rated value of nearly R900 million. There are just short of 2000 residential properties with a total value of R1.666 million. The rates currently charged by the City Council are: for commercial properties - .00861 cents in the rand; for residential properties - .00459 cents in the rand. The probable levy for residential properties is .0012 cents in the rand, and for commercial properties .0015 cents in the rand. This means that a residential house valued at R1 million would pay an annual levy of R1200 or R100 a month.
On this basis we estimate that the CID levy on residential properties would yield a sum of R2 million, and the levy on commercial properties would yield R1.3 million, making a total annual income for the CID of R3.3 million. The final figures depend on the degree of sign up that we get: we can exclude poorly supported areas from the CID and thus save expense. However, due to an element of fixed supervisory costs, the greater the number of participants the lower the rate in the rand can be.

HOW DOES IT WORK?

The management body of the CID is a Section 21 company. Each month the City pays one twelfth of the annual budget to the CID. The CID will be run by a Manager who will be responsible to the Board of the Section 21 company. Board members will in turn be responsible to and elected by ratepayers in the designated area.
Once the CID is approved, all ratepayers have to pay the levy as part of their monthly municipal account. The money collected must go to the CID, and must be used to provide the services specified in the Business Plan (and approved by ratepayers). Property owners who are landlords have the option of passing the levy on to their tenants. Persons who are over 65 or in circumstances of financial hardship can apply to the CID for concessions or exemption in respect of the monthly levy.

HOW DO WE GET APPROVAL FROM THE CITY COUNCIL?

1. First we must get the written support of 25% by number and value of property owners in the area. Then a public meeting must be held to inform residents of the planned CID, after which a written application must be submitted. This must include an improvement plan, and payment of a fee to the Council. The application must be advertised, with time allowed for objections. We need to complete this phase by the end of May 2008.
2. If the Council approves the application, the CID has six months in which to get the written approval of at least 75% of property owners in the area. (In the case of a CID which only represents commercial property owners, the figure drops to 50%).
3. Once majority approval has been obtained, a Section 21 company is set up, and the CID Plan is then implemented. At the inception of a CID a three year budget is adopted, based on the Business Plan.

WHAT ARE THE BENEFITS

These are spelt out in the business plan. Foremost among the benefits is creating a suburb in which residents feel safe in their homes and on their streets.
• The CID will provide for dedicated foot and bicycle patrols on the area, with a minimum of eight patrol officers on shift at any one time, supported by a patrol vehicle. The CID will work together with the Woodstock Police and the Neighbourhood Watch to reduce crime and establish a visible police presence in the area.
• Your street will be cleaned once a week - grime, litter and graffiti will become things of the past.
• Problems associated with the presence of homeless or displaced people will dealt with in a holistic way. The result will be a reduction of littering and anti-social behaviour. A safe, clean public toilet will be a priority. The setting up of a suitable night shelter will be another priority.
• The CID will work together with the Observatory Civic Association to help ensure that the historic character of Observatory is respected, and that public spaces (parks, the village green) are well-maintained and safe. The appearance of our suburb will be greatly enhanced. Improvements will include replacement of wire-mesh fencing on concrete poles by railings; the use of brick paving in the CBD; Victorian-style lamp standards; and the planting of flowers and trees.
• Perhaps the biggest benefit is that everyone contributes - there are no freeloaders.