Transcript
Page 1: City of Cape Town   Council Overview

City of Cape Town Council Overview

A comprehensive guide to Council’s structures, finance, governance, directorates and planning

June 2011

CITY UF CAPE TUWN ‘ ISIXEKO SASEKAPA ‘ STAIJ KAAPSTAD

THIS CITY WORKS FOR YOU

Page 2: City of Cape Town   Council Overview

GO

VERN

AN

CE

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 1

OVE

RVIE

WST

RUCT

URE

FIN

AN

CED

IREC

TORA

TES

PLA

NN

ING

GLO

SSA

RY

This handbook introduces the City of Cape Town.It provides important orientation informationregarding the municipality, its finances, service

delivery and capital programmes, and key issues thatwill be addressed by the new Council.

The City is a large, complex and diversified organisa-tion, with a proposed 2011/12 budget of R27,1 billion,which is inclusive of the operating budget of R22 bil-lion. The City has more than 220 councillors and 25 000staff serving 3,7 million residents across a sprawlingand diverse metro of 2 500 square kilometres.

The Administration delivers services such as water,electricity, waste removal, sanitation, new infrastruc-ture, roads, public spaces, facilities, housing develop-ments, the upgrade of informal settlements and exist-ing infrastructure, clinics, and more.

This city relies heavily on the team work between itselected councillors and the staff in its Administration,and understanding the City’s role and how it works isessential in contributing to successful service delivery.

Councillors and political office bearers bring externalknowledge, experience, and an understanding of theneeds of their ward and communities to the City.

The policy decisions and resolutions of Council guidethe staff and provide them with the mandate to deliverservices.

Effective service delivery requires an Administrationwith institutional knowledge, expertise, experience,financial sustainability, a ‘can do’ attitude and goodgovernance measures.

A city that runs smoothly contributes to economicgrowth and job opportunities by attracting businessesand investments, and here Cape Town has notched upmajor achievements. It successfully hosted the FIFA2010 Soccer World Cup – and gained more than R13billion’s worth of new infrastructure in doing so – andis recognised as Africa’s leading tourism, investmentand lifestyle destination.

However, despite the successes significant chal-lenges, gaps and needs remain. There is no room forcomplacency, and a partnership approach between theCouncil and the Administration is essential.

This is based on different, clear roles and responsibil-ities, a system of delegated authority, an onerous legaland financial framework. It also requires mutualrespect for each others’ objectives and deliverables.

Stable local government where there is continuity,sharing of institutional and external knowledge, jointobjectives and efforts – all vital for service delivery toall residents.

I trust that this publication will give every councillor,office bearer, role-player and stakeholder valuableinformation, context and insight into a city we areimmensely proud of.

Achmat EbrahimCity Manager

Foreword

Page 3: City of Cape Town   Council Overview

ContentsOverview of the City of Cape Town4 A brief history of the City5 Demographic and socio-economic overview

Political and administrative structuresThe City of Cape Town is a metropolitan municipality that employs more than 25 000 staff, who serve 3,7 millionresidents across a 2 400 km2 area. Cape Town is governed by a 221-member city council, which elects the Execu-tive Mayor, Deputy Mayor and Speaker. The City administration is led by the City Manager, supported by an Execu-tive Management Team.10 Overview of political governance structures13 Overview of the City administration14 The City’s staff complement

Finance and budgetIn the coming financial year, the City will spend R27,1 billion on providing services for its residents, and investingin its long-term strategy of infrastructure-led growth and development. The City’s functions, service delivery andgrowth are not possible without effective revenue collection and expenditure, excellent financial management andreporting, and viable and sustainable budgeting.

GovernanceThe City of Cape Town is funded by public money, and is therefore expected to exercise the highest levels of corpo-rate governance. This goes far beyond compliance with the extensive and comprehensive legislation – the City’sgovernance systems are designed to meet or exceed the highest professional standards and recommendations.

The City’s directoratesThe City’s service delivery sectors are divided into 12 directorates, each with focused and clear roles and responsi-bilities. They provide organisational support, services and infrastructure to residents across the metro. Each isresponsible for its own planning and budget in accordance with the City’s overall strategy.

Plans, frameworks and strategiesIn order to meet the needs of its residents and provide a foundation for growth and development, the City hasdeveloped several important plans, frameworks and strategies. These range from the five-year IntegratedDevelopment Plan (IDP) to strategies for improving transport. Some of these have been approved, and others arebeing developed for submission to appropriate Council forums.

Glossary

17

21

25

69

81

9

3

27 Office of the City Manager29 Internal Audit31 Community Services35 Corporate Services39 Economic, Social Development & Tourism 43 Finance

47 Health 49 Housing53 Safety & Security57 Strategy & Planning 61 Transport, Roads & Major Projects65 Utility Services

70 Integrated Development Plan71 Service Delivery and Budget Implementation Plan72 Annual and quarterly reporting73 Local Government Turnaround Strategy74 City Development Strategy

75 Integrated Transport Plan76 Cape Town Spatial Development Framework77 Infrastructure Asset Management Plan78 Draft Events Strategy79 Draft Economic and Human Development Strategy

The content of the report is as at the end of the term of office of the previous Council and administration.

Produced by the Communication Department of the City of Cape Town.

Editing, design and production: The Creative Store. Photographs: Bruce Sutherland and Jéan du Plessis. Printing: Frantic Digital

2 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

Page 4: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 3

PLA

NN

ING

STRU

CTU

REFI

NA

NCE

GO

VERN

AN

CED

IREC

TORA

TES

GLO

SSA

RY

Overview of the City of Cape Town

The City of Cape Town, as a metro municipality, is just ten years old, but as SouthAfrica’s oldest city, it has a municipal governance and service delivery heritage that

dates back more than 300 years.Council is responsible for continuing and strengthening this proud tradition, anddelivering the best infrastructure, services and economic opportunities to Cape

Town’s 3,7 million residents.

In this sectionA brief history of the City

Demographics and socio-economic overview

OVE

RVIE

W

Page 5: City of Cape Town   Council Overview

The City of Cape Town as the municipal enti-ty of today is just over ten years old. How-ever, the Mother City has the oldest munici-pal structure in the country, going back toits first Council meeting held on 8 April

1652 – on a sailing ship anchored in Table Bay.Three days before, Jan van Riebeeck and a party of

around 200 men and women had arrived to set up areplenishment station for the Dutch East India Compa-ny – Vereenigde Oost-Indische Compagnie (VOC).

This ‘council of policy’ meeting, to decide on the lay-out and construction schedule for a vegetable garden,settlement and a fort was held on board the Drome-daris, as there were not yet structures on land.

From company settlement to colonyThe VOC administered the settlement as a business, notas a civic entity. Residents did, over time, acquireincreasing representation on the council of policy, andon the councils that managed public safety andhygiene. However, the VOC’s fortunes eventually faded,and the Company collapsed in 1798. Administratively,Cape Town became a Dutch colony.

The Cape’s position on the trade route to the EastIndies made it strategically and economically important,and it changed hands several times. British forces cap-tured Cape Town in 1795, but it was returned to theNetherlands by treaty in 1803.

Cape Town, by then a possession of the BatavianRepublic and managed by a governor and an executivecouncil of four salaried officials, was granted the statusof a town, complete with a coat of arms.

Britain occupied the Cape again in 1806 following theBattle of Blaauwberg, and in 1814, the Cape was cededto Britain, and became the capital of the newly formedCape Colony. To manage the new administrative capital,a legislative council was formed in 1834.

The municipal eraThis was followed, in 1838, by the creation of a munici-pality covering Green Point and Sea Point. On 3 March1840, the Cape Town Municipality was established, toadminister a town with a population of 20 016 people.The Board of Commissioners and Wardmasters wasformed to shape regulations for the town, regulateincome and expenditure, and set property rates.

In the following year, the villages of Mowbray, Ron-debosch, Claremont and Wynberg combined to formthe Liesbeek Municipality. In 1886, however, Wynbergbroke away, followed shortly afterward by Claremont,and, in 1890, by Mowbray and Rondebosch.

In 1867, the Cape Town Municipality AmendmentAct, granting full municipal government, was enactedby the Cape Colonial Parliament. It made provision for18 town councillors and a mayor.

By 1900, there were 11 local authorities – the munic-

ipalities of Cape Town, Claremont, Green Point and SeaPoint, Kalk Bay, Maitland, Mowbray, Rondebosch,Simon’s Town, Woodstock and Wynberg, and the CapeRural Council, which administered non-municipal areas.

But by 1910, it had become apparent that havingmany small municipalities was inefficient. There was aduplication of resources and skills, and there was a big-ger problem – an acute water shortage. Individually,the municipalities could not afford to build their owndams, and the logical solution was to pool resources.

The first ‘unicity’In 1912, in the face of severe water restrictions, amunicipal union conference was held, and the outcomewas that, in September 1913, the eight municipalitiesof Cape Town, Claremont, Green Point and Sea Point,Kalk Bay, Maitland, Mowbray, Rondebosch and Wood-stock combined into the City of Cape Town. Wynbergremained a separate municipality until 1927, whenwater shortages forced it to join Cape Town.

As the city’s population increased, many surroundingsuburbs and villages grew into municipalities. FishHoek was incorporated in 1940, and by 1945, the endof World War II, four new municipalities – Bellville, Dur-banville, Goodwood and Parow – were formed.Pinelands became a municipality in 1948, and Milner-ton one in 1955. Eventually, Greater Cape Town had 39local authorities and 19 administrations.

After the 1994 elections, municipal governmentunderwent a complete overhaul. This was driven by thedesire to do away with racially based entities, and alsobecause many of the thousands of local authoritiesaround the country were too small to be effective.

From 58, to seven, to oneOn the eve of the 1996 local government elections, the58 entities that made up metropolitan Cape Town werecombined into seven – the municipalities of Blaauwberg,Cape Town, Helderberg, Oostenberg, South Peninsula,Tygerberg and the umbrella Cape Metropolitan Council.

The City of Cape Town itself came into being at mid-night on 4 December 2000, when these seven entitieswere merged into the Cape Town ‘Unicity’.

At the same time across the country, 283 other munici-pal councils (another five metropolitan councils, 231 localcouncils and 47 district councils) were also established.

The new Unicity had more than 27 000 staff and abudget of R8,9 billion (a capital budget of R2,1 billionand an operating budget of R6,8 billion).

At a practical level, there was the huge challenge ofmerging staff, functions, systems, infrastructure andequipment from the seven administrations into one entity.

Just over a decade later, the City now has a staff com-plement of just over 25 000 employees, and a budget ofR27,1 billion (a capital budget of R5,070 billion and anoperating budget of R22,1 billion).

A brief history of the City

The Kaapstad seal – theoldest civic coat of armsin South Africa – which

was granted by the Com-missioner-General of theBatavian Republic, AJ de

Mist, in June 1804.

KEY DATES• The first Council

meeting was held on8 April 1652 – on asailing ship.

• A legislative councilwas formed in 1834.

• In 1838, the firstmunicipality, coveringGreen Point and SeaPoint, was formed.

• The Cape TownMunicipality wasestablished in 1840.

• In 1900, there were 11local authorities, but by1913, eight of thesemerged into CapeTown.

• By 1994, Greater CapeTown had 39 localauthorities and 19administrations.

• In 1996, these 58entities were mergedinto seven.

• These seven entitieswere merged into theCity of Cape Town on4 December 2000.

4 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

Page 6: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 5

The Mother City is South Africa’s oldest city,its second-most populous and, with an areaof 2 455 km2, its largest. It is the legislativecapital of South Africa, the administrativeand economic centre of the Western Cape

Province, and Africa’s third-biggest economic hub.It produces 10,58% of South Africa’s gross domestic

product (GDP) and accounts for more than 71% of theWestern Cape’s economic activity. The city has a diversi-fied economy, and the three biggest sectors are:• finance, insurance, property and business services;• manufacturing; and• wholesale and retail trade, catering and accommo-

dation – much of this tourism-driven.

Cape Town is Africa’s most-visited tourist destina-tion, and the recipient of numerous travel and destina-tion awards. Tourism, conferences and conventions pro-vide almost 10% of the province’s GDP, and theseactivities are an important driver of economic growth.

PopulationLike other South African metros, Cape Town is charac-terised by a growing population, with an estimatedannual growth rate of 3%. The population of CapeTown was estimated to be 3,7 million in 2010. Whendetermining the projected population growth, birthrates, death rates, migration and the incidence ofHIV/Aids are taken into account.

KEY FACTS• In 2010, Cape Town’s

population wasestimated to be 3,7million.

• The annual growth rateis 3%.

• The population couldincrease to 4,3 millionover the next 20 years.

• Half of the people ofCape Town are youngerthan 26 years.

• In 2010, the estimatednumber of householdswas 1 060 964.

• This is projected toincrease to 1,45 millionby 2019.

• 72,5% of householdslive in formaldwellings, 17,1% livein informal dwellings,and 10,4% are‘backyarders’.

PLA

NN

ING

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

DIR

ECTO

RATE

SG

LOSS

ARY

Demographic and socio-economic overview

1. POPULATION TRENDS AND PROJECTIONS

2,4

2,6

2,8

3,0

3,2

3,4

3,6

3,8

4,0

4,2

4,4

4,6

4,8

5,0

5,2

5,4

1996 2001 2006 2011 2016 2021 2026 2031

Popu

latio

n in

mill

ions

High growth projection Medium growth projection

Actual population (trend)

Actual population (measured)

Page 7: City of Cape Town   Council Overview

6 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

As migration into Cape Town from rural areas andother provinces is the most uncertain of all the vari-ables, the population growth was projected using alow, medium and high migration rate.

Based on current and recent population data, themedium projection rates from a study in 2000 (by Pro-fessor Rob Dorrington of the University of Cape Town)give the best estimate of what the projected popula-tion of the city could be in 20 years’ time, and are cur-rently the agreed figures used for future planning.

By 2031, the population of Cape Town is projectedto grow to at least 4,3 million.

Cape Town’s population is relatively young, with28,3% of the population younger than 15 years, and5,2% older than 64 years in 2009. The median age ofthe population is 26 – in other words, half of the peo-ple of Cape Town are younger than 26.

Households and dwellingsThe number of households in the city is growing at afaster rate than the population. In 2010, the estimatednumber of households in Cape Town was 1 060 964,and this number is projected to increase to 1,45 millionby 2019.

The average household size for all households inCape Town has, however, declined from 3,92 people perhousehold in 1996 to 3,72 in 2001. This places addi-tional demand on the provision of housing, as there arean increasing number of households needing shelter.

Formal and informalA formal dwelling is defined as a structure built accord-ing to approved plans, such as a house on a separatestand, flat or apartment, townhouse, or flatlet.

An informal dwelling is defined as a makeshift struc-ture not erected according to approved architecturalplans, for example shacks or shanties in informal settle-ments or in backyards (Statistics SA).

The percentage of households living in formaldwellings has declined from 79,3% in 1996 to 71,6%in 2007. The percentage of households living in infor-

mal dwellings in settlements has declined from 15,9%in 1996 to 12,2 % in 2007, while households in infor-mal dwellings in yards have increased from 3,3% to10,7% over the same period.

The number of households living in informaldwellings has been increasing significantly, and wasestimated to be 291 826 in 2010. Projections indicatethat this trend will continue, unless innovative ways tosignificantly increase the delivery of low-cost housingare found. The number of households living in informaldwellings is estimated to grow to 417 213 by 2019.

Access to servicesThe information below is derived from the Statistics SA2009 General Household Survey and is not a directmeasure of possible backlogs in service delivery by thedifferent services. City services are not delivered tohouseholds as such, but to erven (properties) in the for-mal areas, and to service points in other areas.

In 2009, 89,7% of all households were connected tomains electricity supply, with 53,7% of these house-holds being supplied by the City of Cape Town. In someof the northern and eastern parts of the Cape Townmunicipal area, electricity is supplied by Eskom.

Refuse was removed from 95,0% of all householdsin 2009, either by the City of Cape Town or by busi-nesses contracted for this service by the City, and 3,6%used a communal refuse dump or communal container.

A total of 93,2% of households had access to a toi-let connected to the public sewer system in 2009.Another 0,8% had access to a flush toilet connected toa septic tank, a chemical toilet or a ventilated pit toilet,all of which are considered by national standards to beacceptable as a basic level of service.

Of all households having adequate toilet facilities,91,4% of these facilities are on their property, beingeither in their dwelling or in their yard, 2,4% are lessthan 200 m from their dwelling, and 0,1% are morethan 200 m from their dwelling.

In 2009, 99,6% of all households had access topiped water, with 76,7% having piped water in their

2. HOUSEHOLDS BY TYPE OF DWELLINGDwelling type 1996 2001 2005 2006 2007Formal dwelling 79,28% 78,83% 76,76% 75,50% 71,63%Informal dwelling in yard 3,34% 4,34% 5,89% 8,74% 10,67%Informal dwelling in settlement 15,87% 14,50% 12,62% 12,57% 12,24%Other (e.g. caravan, tent, traditional) 0,66% 2,33% 4,01% 3,19% 5,01%Unspecified 0,85% – 0,72% – 0,45%Source: Statistics South Africa – 1996 Census, 2001 Census and General Household Surveys

3. ECONOMIC AND EDUCATION INDICATORS1996† 2001† 2009‡

Annual income threshold R12 000 R19 300 R42 000Households with income below annual threshold 24,66% 39,00% 34,63%Adults (20+) with highest qualification lower than Grade 12 67,07% 62,03% 49,88%Economically active unemployed 19,55% 29,38% 24,15%Labour force in unskilled occupations 22,85% 21,46% 19,91%Sources: † Statistics South Africa – 1996 Census, 2001 Census, ‡ City of Cape Town

KEY FACTS• Average household size

declined from 3,92 to3,72 members.

• The percentage ofhouseholds living informal dwellings hasdeclined from 79,3% to71,6%.

• Those households ininformal dwellings inyards have increasedfrom 3,3% to 10,7%.An estimated 291 826households live ininformal dwellings.

• This number isprojected to grow to417 213 by 2019.

• 89,7% of householdsare connected to anelectricity supply.

• Refuse is removed from95,0% of households.

• In 2009, 93,2% ofhouseholds had accessto a toilet connected tothe public sewersystem.

• 1,8% of householdshave no access to toiletfacilities, 3,7% use abucket toilet, and 0,2%a pit toilet withoutventilation.

• In 2009, 99,6% of allhouseholds had accessto piped water.

• 48,3% of adults have aGrade 12 or higherlevel of education.

Page 8: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 7

dwelling and 14,7% in their yard. Public taps wereused by 7,4% of all households, and 0,8% used aneighbour’s tap. Only 0,3% of all households rely onaccess to piped water that is more than 200 m fromtheir dwelling.

Socio-economic indicatorsThe percentage of adults whose highest qualification isless than Grade 12, and the percentage of the labourforce in unskilled occupations, have declined since1996. Unemployment rose sharply in 2001, but hasshown some decline since.

There has been an increase in the percentage ofhouseholds earning less than the income thresholdsince 1996. The income threshold is currently R3 500per household per month.

Education Encouragingly, there is an increasing number of adultswho have at least Grade 12 as their highest level ofeducation. In 2009, 48,3% of adults in Cape Town hada Grade 12 or higher level of education, with just 1,4%having had no formal education.

However, access to tertiary education is still a chal-lenge for many. Having a higher level of educationincreases the likelihood of finding employment, andthis, in turn, will help reduce the unemployment rate.

In 2009, of the population aged 15 years and older,1,3% were totally illiterate and 7,2% were functionallyilliterate. Only 42,2% of children under the age of fiveyears were exposed to early childhood development(ECD) activities, but 96,5% of those aged 5 to 14 years

were attending an educational institution.

Income and unemploymentHousehold income is one of the indicators of poverty.Of all households in Cape Town, 34,6% have a monthlyincome of less than R3 500 (Statistics SA, 2009).

Unemployed persons are defined by Statistics SA asthose aged between 15 to 64 years who:• were not employed at the time of the survey;• actively looked for work;• had tried to start a business in the four weeks pre-

ceding the survey; and• were available for work, i.e. would have been able to

start work or a business in the week of the survey.Unemployment in Cape Town was at its highest(29,2%) in 2001; declined to 15,1% in 2006, and roseagain to 25,82% in 2010, the highest rate since 2001.

Cape Town needs to create an environment that willboth enable and encourage economic growth in theregion. This, in turn, will result in the creation of morejob opportunities, and will lead to reduced levels ofunemployment.

Health indicatorsCape Town’s infant mortality rate – the number ofdeaths of children under the age of 1 out of every1 000 live births – has shown a significant decline,from 25,16 in 2003 to 20,76 in 2009.

However, the incidence of HIV in Cape Town hasincreased from 17,0% in 2005 to 18,2% in 2009 (seeTable 5). This is higher than that for the Western Capeas a whole, which was at 16,8%, but is significantly PL

AN

NIN

GST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

DIR

ECTO

RATE

SG

LOSS

ARY

5. HEALTH INDICATORS2003 2004 2005 2006 2007 2008 2009

Infant mortality rate 25,16% 23,74% 22,28% 21,40% 20,28% 19,78% 20,76%

Incidence of HIV – – 17,0% 18,2% 17,6% 18,3% 18,2%

ART-dispensing facilities – – – 28 35 44 50

People registered for ART – – – 17 646 25 544 37 355 52 141Source: Health Department, City of Cape Town and the Western Cape Department of Health

4. UNEMPLOYMENT TRENDS

0%

10%

20%

30%

40%

50%

60%

1996 2001 2005 2006 2007 2008 2009 2010

Black Africans Coloureds Whites Total

KEY FACTS• Of those aged 15 and

older, 1,3% weretotally illiterate and7,2% were functionallyilliterate in 2009.

• 42,2% of childrenunder the age of 5were exposed to earlychildhood development(ECD) activities in2009.

• 96,5% of those aged 5to 14 attend aneducational institution.

• The unemploymentrate in 2010 was25,82%, the highestsince 2001.

• The incidence of HIVhas increased from17,0% in 2005 to18,2% in 2009.

• 52 141 people with HIVare registered forantiretroviral treatment(ART).

• The overall crime ratehas shown a decline –the murder rate hasdecreased, but drug-related and commercialcrimes are on theincrease.

OVE

RVIE

W

Page 9: City of Cape Town   Council Overview

lower than that for South Africa overall, where the inci-dence was at 29,4% in 2009.

The number of people with HIV registered for anti-retroviral treatment (ART) has increased from 17 646 inDecember 2006 to 52 141 in December 2009. In thesame period, the number of facilities dispensing ARThas increased from 28 to 50. These figures do notinclude treatment at private facilities.

CrimeThe overall crime rate (measured by reported crime)has shown a decline in Cape Town from 9 513 per100 000 in 2003/4 to 8 032 in 2009/10. The incidenceof murder is showing a decreasing trend, but is stillhigh, with 1 521 murders reported in 2009/10.

Commercial crime is showing an increasing trend,with 9 280 commercial crimes reported in 2009/10, anddrug-related crime has shown a dramatic increase, with39 175 reported cases in 2009/10, an increase of morethan 300% since 2003/4.

Although the overall crime rate has shown a declinein Cape Town, the level of crime and its associated

social and psychological consequences continue to bean area of concern.

Of particular concern is the dramatic increase indrug-related crime. As high levels of crime can nega-tively affect the economy in the city, this, in turn, canlead to rising poverty.

The way forwardTo meet the current and future needs of its residents,the City has formulated strategies and policies to guidedevelopment and growth. Central to these is the Inte-grated Development Plan (IDP), which is a five-yearplan, revised every year, informing the City’s policy andbudget decisions. The incoming Council is required torevise the IDP for its term of office.

The IDP is, in turn, shaped by policies relating to spa-tial development, transport, housing, social develop-ment, economic growth, environmental stewardship,and more.• Information on the IDP and associated strategies

and policies can be found in the “Plans, frameworksand strategies” section on page 68.

8 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

Page 10: City of Cape Town   Council Overview

OVE

RVIE

WFI

NA

NCE

GO

VERN

AN

CED

IREC

TORA

TES

PLA

NN

ING

GLO

SSA

RY

Political and administrativestructures

The City of Cape Town is a metropolitan municipality that employs more than25 000 staff, who serve 3,7 million residents across a 2 400 km2 area.

Cape Town is governed by a 221-member City Council, which elects the ExecutiveMayor, Deputy Mayor and Speaker. The City administration is led by the City

Manager, supported by an Executive Management Team.

In this sectionOverview of the political governance structures

Overview of the City administrationThe City’s staff complement

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 9

STRU

CTU

RE

Page 11: City of Cape Town   Council Overview

The SpeakerThe Speaker is the chairperson of Council and presidesover Council meetings. He or she is responsible formanaging community participation in local govern-ment, particularly through the ward forums, by ensur-ing they function effectively. The Speaker is elected byCouncil.

The Executive MayorThe Mayor is the head of local government in CapeTown. He or she is elected by Council every five yearsand has statutory powers and functions.

The mayor identifies the needs of the municipality,and recommends to Council ways and means for therealisation of those needs by means of the IntegratedDevelopment Plan and budget.

He or she monitors the administration, reviews theperformance of the municipality and oversees servicedelivery.

The Executive Mayoral CommitteeThe Mayoral Committee (Mayco) exercises the powers,functions and duties designated to it by Council anddelegated by the Executive Mayor. Designated powers,functions and duties are performed and exercised bythe Executive Mayor together with the members of thecommittee. Members are appointed to Mayco by theExecutive Mayor.

Mayco members held the following portfolios beforethe local government elections:• Community Services• Corporate Services and Human Resources• Economic Development and Tourism

Cape Town is a metropolitan municipality,governed by a city council. Council is botha legislative and ad executive body, and theConstitution empowers Council to makedecisions concerning the exercise of all the

powers and the performance of all the functions of themunicipality.

The governance structureThe diagram below shows the political governancearrangements in place before the 2011 local govern-ment elections, established in terms of the relevant sec-tions of the Municipal Systems Act. The following politi-cal structures are provided for:

CouncilCouncil is the legislative and executive body responsi-ble for governing Cape Town. Following the 2011 localgovernment elections the size of Council increasedfrom 210 to 221 councillors – 111 ward councillors and110 proportional (party list) councillors.

Council elects the Executive Mayor, the ExecutiveDeputy Mayor, the Speaker and the chairs of Section 79Committees, and appoints the City Manager, the ChiefWhip, and the Section 57 managers.

Some of Council’s many functions include: the devel-opment and implementation of bylaws, the IntegratedDevelopment Plan, tariffs for rates and services and thebudget, and service-level agreements.

Council also debates local government issues andratifies or rejects proposals, and disposes of capitalassets. Decisions taken by Council are implemented bythe City’s Executive Management Team (EMT).

Overview of political governance structures

Subcouncils

Wards

• Homeless Agency Committee• Rules Committee• Standing Committee on Public Accounts (SCOPA)• Spatial Planning, Environment and Land Use Management Committee (SPELUM)

SECTION 79

Audit Committee

SECTION 166

Ad hoc committees• City Development Strategy• Delegations Task Team• Informal Settlements

SA Police Service ActCivilian Oversight Committee

• Community Services• Corporate Services • Economic Development & Tourism• Finance• Health• Housing• Planning & Environment• Safety & Security• Social Development• Transport, Roads & Major Projects• Utility Services

SECTION 79 PORTFOLIO COMMITTEES

SECTION 62Planning and GeneralAppeals Committee

Council

Executive Mayor

Mayoral Committee

Speaker

SCHEDULE 1Disciplinary Committee

Energy Committee

SECTION 80 COMMITTEES

THE CITY’S POLITICAL STRUCTURES

10 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

Page 12: City of Cape Town   Council Overview

programmes undertaken by the City in this regard areproperly implemented, and stay on track.

Rules CommitteeThe Rules Committee is concerned with the rules ofprocedure of Council and its committees. These rulesare intended to allow for orderly debate by as manycouncillors or members as is possible within reasonabletime constraints.

Spatial Planning, Environment and Land Use Man-agement Committee (SPELUM)The terms of reference of this committee relate to spa-tial planning, town planning, the environment andrelated matters. The committee considers land use andzoning applications, and does so in the broader contextof environmental and heritage impacts.

Standing Committee on Public Accounts (SCOPA)SCOPA is the mechanism through which Council exer-cises oversight over the expenditure of public money.

As far as financial management is concerned, SCOPAenables Council to fulfil its constitutional obligation toscrutinise and oversee executive action, by holding theaccounting officer and councillors accountable for theirspending of ratepayers’ money and their stewardshipover public assets in order to ensure regular, economi-cal, efficient and effective local government spending.

SCOPA conducts its affairs in a non-party politicalmanner so as to maximise the effectiveness of its work.The committee ensures that the City’s oversight report,as envisaged in Section 129 of the Municipal FinanceManagement Act (MFMA), is prepared for adoption byCouncil, and investigates and advises Council in respectof unauthorised, irregular or fruitless and wastefulexpenditure in terms of Section 32(2) of the MFMA.

Section 80 CommitteesCouncil appoints section 80 committees to assist eitheran executive mayor or an executive committee whennecessary, to assist with the efficient performance of

• Finance• Health• Housing• Planning and Environment• Safety and Security• Social Development• Transport, Roads and Major Projects• Utility Services

Committees of CouncilA municipal council may in terms of the Structures Actappoint committees to:• exercise any of its functions or obligations (section

79 committees)• assist the executive mayor (section 80 committees).

Section 79 committeesCouncil appointed 11 portfolio committees and theirterms of reference included policy formulation andimplementation within their specific functional areas.

Portfolio committees are chaired by councillors, whoare appointed by full Council. The following portfoliocommittees existed before the 2011 local governmentelections:• Community Services• Corporate Services and Human Resources• Economic Development and Tourism• Finance• Health• Housing• Planning and Environment• Safety and Security• Social Development• Transport, Roads and Major Projects• Utility Services

Homeless Agency CommitteeThe Homeless Agency Committee is the political over-sight body that ensures that issues relating to streetpeople (street children, adults and street youth) areadequately addressed, and that previous and future

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 11

OVE

RVIE

WFI

NA

NCE

GO

VERN

AN

CED

IREC

TORA

TES

PLA

NN

ING

GLO

SSA

RY

Permanent Section 80 committees advise Council on matters relating to energy, land use and planning, and homeless people.

STRU

CTU

RE

Page 13: City of Cape Town   Council Overview

functions. The following committee existed before the2011 local government elections

Energy CommitteeThe functional area of the Energy Committee includes,but is not limited to, non-fossil fuel-generated energysources, renewable energy and renewable fuels, climatechange and global warming, and reduction in carbonemissions and pollution within the city. The committeeis responsible for driving the effective integration of,and delivery on, all energy matters in the City.

Council also appoints the following committees interms of the Municipal Systems and Structures Acts:

Disciplinary Committee This Schedule 1 committee investigates and makes afinding on any alleged breach of the Code of Conductfor Councillors, and make appropriate recommenda-tions to Council. Also, it is concerned with investigatingand making findings on non-attendance of meetings,and imposing fines as determined by Council’s rules oforder.

Planning and General AppealsThis Section 62 committee considers appeals againstdecisions taken in terms of a power or duty delegatedor sub-delegated by a delegating authority to a politi-cal structure, political office-bearer, councillor or staffmember.

Office of the SpeakerThe Office of the Speaker’s responsibilities range fromcoordination of all processes flowing from subcouncildelegations, disciplinary investigations in terms of thecode of conduct for councillors, and the rules of meet-ings of political structures.

Subcouncils Subcouncils are established to assist the municipality inthe performance of its duties and the exercise of itspowers on a decentralised basis.

A metropolitan subcouncil may advise the Council

on what duties and powers should be delegated to it.The terms of reference of subcouncils are as follows:

• To make recommendations to Council on any matteraffecting its area of jurisdiction

• To exercise any power, duty or function delegated toit by Council in respect of its area of responsibility

• To exercise any power, duty or function conferredupon it in terms of the Subcouncil Bylaw

Ward forumsCouncil, by virtue of the operation of Section 17 of theMunicipal Systems Act and Section 72 of the StructuresAct, resolved to establish public participatory mecha-nisms, called ward forums, in all of the wards of theCity of Cape Town.

Council further resolved that the nature and type ofward forums are to be determined by subcouncils andas such ward forums exist as a public participatorymechanism at subcouncil level. The Office of the Speak-er, in terms of the System of Delegations, is chargedwith the overall oversight of said ward forums.

As a public participatory mechanism, ward forumsserve as a conduit for information into and out of theCity. Ward forums further make recommendations torelevant ward councillors or subcouncils and also serveas a tool to measure service delivery in their respectivewards.

Office of the Chief WhipThe Chief Whip, who represents the whips in general, isappointed by Council and has been delegated certainfunctions by Council. The Chief Whip’s responsibilitiesinclude: • ensuring that each of the political parties are fairly

represented on the various committees;• maintaining sound relations between the various

political parties;• attending to disputes between political parties; and• assessing the professional needs of the councillors,

arranging suitable training to develop political gov-ernance capacity, and improving councillors’ individ-ual skills.

Subcouncils and ward forums provide the link between residents and the administration.

12 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

Page 14: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 13

OVE

RVIE

WFI

NA

NCE

GO

VERN

AN

CED

IREC

TORA

TES

PLA

NN

ING

GLO

SSA

RY

Overview of the City administration

Mike RichardsonExecutive Director:

Finance(Chief Financial Officer)

David BerettiExecutive Director:Corporate Services

Hans SmitExecutive Director:

Housing

Office of the City ManagerOmbudsmanForensicsExecutive SupportGovernance & InterfaceIntegrated Development PlanOrganisational Performance Management

Lungile DhlaminiExecutive Director:

Utility Services

Lokiwe MtwaziExecutive Director:

Community Services

Ruby GelderbloemActing Executive Director:

Economic, SocialDevelopment & Tourism

Achmat EbrahimCity Manager

Richard BosmanExecutive Director:Safety & Security

Zulpha AbramsChief Audit Executive

Mike MarsdenExecutive Director:Transport, Roads& Major Projects

Dr Ivan BromfieldExecutive Director:

HealthActing Executive Director:

Strategy & Planning

EXECUTIVE MANAGEMENT TEAM

The City administration is led by the City Manager, supported byan Executive Management Team (EMT) appointed in terms ofSection 57 of the Municipal Systems Act. The City administra-

tion is currently structured as follows:

Executive Management TeamEach member of the Executive Management Team (EMT) heads adirectorate responsible for key functions of the organisation (see the“Directorates” section on page 25).

The EMT implements Council decisions, and leads the City’s drive to

achieve its strategic objectives, as outlined in the Integrated Develop-ment Plan (IDP) adopted each year.

Office of the City ManagerThe Office of the City Manager (OCM) is responsible for all aspects ofthe City’s governance and compliance with the relevant legislationand best practice.

Responsibilities include interface with residents, executive supportand forensics, and the ombudsman.

The OCM is also responsible for the IDP.

THE CITY’S EXECUTIVE STRUCTURE

STRU

CTU

RE

Page 15: City of Cape Town   Council Overview

The City of Cape Town is a service organisation,and its services are delivered primarily throughits employees. Therefore, a sizeable portion of

the R27,1 billion budget is absorbed by a workforce ofmore than 25 000 employees. The staff budget for2011/12 is R7 013 931 370 – more than R7 billion.

Overall staff numbersAs of 1 April 2011, there were 25 383 permanent andtemporary employees and 2 139 funded vacancies. Afunded vacancy is a position that has been identified,described and budgeted for, but has not yet been filledby a suitable person.

The distribution of City staff by occupational catego-ry and by directorates is given in the table below.

Training budgetThere is an acute shortage of skills, at both local andnational level, and to address this, the City investsheavily in training. The City’s 2011/12 budget for the

training and development of its staff is R61,3 million.This money is spent in the following areas:• Technical training• General training (including occupational health and

safety, labour relations, diversity, etc)• Leadership development• Adult education and training• Bursaries (both internal and external)• Learnerships• Internships• In-house training for studentsEmployees cover a skills range of almost all the occu-pations found in commerce and industry.

Trade union informationThere are two recognised trade unions within the Cityof Cape Town, with an overall 87,5% level of unionisa-tion. Of those who belong to a union, 12 282 employ-ees are affiliated to the South African Municipal Work-ers Union (SAMWU) and 9 294 employees are affiliated

14 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

OCCUPATIONAL CATEGORY FILLED POSTS FILLED POSTS VACANT POSTS TOTAL(Permanent) (Temporary)

Legislators, senior officials and managers 261 0 30 291Professionals 1 854 32 171 2 057Technicians and associate professionals 2 038 130 227 2 395Clerks 5 649 104 510 6 263Service and sales workers 2 683 754 181 3 618Craft and related trades workers 2 206 2 258 2 466Plant and machine operators and assemblers 3 100 31 421 3 552Elementary occupations 6 072 467 341 6 880TOTALS 23 863 1 520 2 139 27 522

The City’s staff complement

DIRECTORATE FILLED POSTS FILLED POSTS VACANT POSTS TOTAL(Permanent) (Temporary)

City Health 1 353 148 59 1 560Community Services 3 507 658 227 4 392Corporate Services 1 710 16 131 1 857Economic & Social Development 318 6 64 388Finance 1 483 24 113 1 620Housing 715 32 55 802Internal Audit 54 0 2 56Office of the City Manager 299 8 35 342Safety & Security 3 250 478 233 3 961Strategy & Planning 759 12 42 813Transport, Roads & Major Projects 1 701 8 182 1 891

15 149 1 390 1 143 17 682Utility Services 3 0 0 3Strategic Support 1 0 1 2Project Monitoring Unit 4 0 0 4Service Regulation and Logistics 12 0 1 13Cape Town Electricity 2 174 97 285 2 556Solid Waste Management 3 006 10 235 3 251Water and Sanitation 3 514 23 474 4 011Total Utility Services staff 8 714 130 996 9 840TOTALS 23 863 1 520 2 139 27 522

Page 16: City of Cape Town   Council Overview

The process included parity of payment for manyemployees, bringing their salaries onto the same scaleas their colleagues, and recognising levels of compe-tence or experience. During the same period, the fivelocal labour forums were established, providing a sig-nificant platform for employees to raise concerns andengage constructively on local-level issues withindepartments and directorates.

The final phase of this roll-out is the formal evalua-tion of every position in the City in terms of a standardnational job evaluation system called TASK. This projectis well under way and is expected to take another 18months to complete.

The City has received recognition from the Depart-ment of Co-operative Government and TraditionalAffairs for its Human Resources Strategy, which isembedded in the Integrated Development Plan (IDP),and provides direction for the various human resourcesinterventions. The City is one of the few local authori-ties with such a strategy in place.

Business improvement and transformationThe City has adopted an Organisational Developmentand Transformation Plan, which drives three strategiesto ensure the optimal provision, organisation anddeployment of City staff. The strategies are as follows:

to the Independent Municipal and Allied Trade Union(IMATU).

There is a national bargaining council, the SouthAfrican Local Government Bargaining Council, with ametropolitan division. Five local labour forums addressproblems at a directorate or departmental level.

Various collective agreements govern the relation-ship between the unions and the employer, and deter-mine what is dealt with at each level of bargaining:national, metropolitan and local. Councillors form partof the team, which represents the City at all three lev-els.

The City has enjoyed a high level of industrial stabili-ty over the past five years, with very few strikes arisingfrom local disputes. This is in part attributable to thecollective bargaining and HR strategies, which havebeen aimed at both stabilising the administration andbuilding constructive relationships with both unions.

The organisational realignment processDuring this period, the City implemented a major proj-ect aimed at stabilising the administration, called theorganisational realignment process (ORP).

This project placed all employees into standardised,comparable positions, on a single set of conditions ofservice and a single payscale.

OVE

RVIE

WFI

NA

NCE

GO

VERN

AN

CED

IREC

TORA

TES

PLA

NN

ING

GLO

SSA

RY

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 15

STRU

CTU

RE

Page 17: City of Cape Town   Council Overview

16 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

• Development of institutional frameworks and busi-ness systems to ensure delivery of the CommunityDevelopment Strategy

• Implementation of human capital management sys-tems and processes to enhance staff alignment withbusiness needs, and improve staff morale and per-formance

• Implementation of efficiency gains through business

improvement interventionsThe plan spells out the expected outcomes and the keyperformance indicators to ensure successful implemen-tation.The key general goals are to improve community satis-faction; improve operational efficiency; improveemployee satisfaction (‘loyalty’ indicator), and improvegovernance.

THE CITY’S EMPLOYMENT EQUITY PROFILE

Female Male TotalDisability

TargetAfrican Coloured Indian White Total African Coloured Indian White Total

Benchmark target (%) 13,85 23,80 0,37 8,08 46,10 15,89 27,37 0,55 10,09 53,90 100,00Top management (T23+)Actual 1 2 0 0 3 1 3 0 5 9 12 0Percentages 8,33 16,67 0,00 0,00 25,00 8,33 25,00 0,00 41,67 75,00 100,00Overall target 2 3 0 1 6 2 3 0 1 6 12Target short/over 1 1 0 1 1 0 0 -4 12Senior management (T19 - T22)Actual 4 3 0 7 14 11 14 1 29 55 69 1Percentages 5,80 4,35 0,00 10,14 20,29 15,94 20,29 1,45 42,03 79,71 100,00Overall target 10 16 0 6 32 11 19 0 7 37 69Target short/over 6 13 0 -1 0 5 -1 -22 68Professionally qualified and experienced (T14 - T18)Actual 84 179 5 204 472 127 473 22 700 1 322 1 794 36Percentages 4,68 9,98 0,28 11,37 26,31 7,08 26,37 1,23 39,02 73,69 100,00Overall target 248 427 7 145 827 285 491 10 181 967 1 794Target short/over 164 248 2 -59 158 18 -12 -519 1 794Skilled technical and academically qualified (T9 - T13)Actual 728 1145 14 531 2418 595 2243 24 945 3 807 6 225 125Percentages 11,69 18,39 0,22 8,53 38,84 9,56 36,03 0,39 15,18 61,16 100,00Overall target 862 1 482 23 503 2 870 989 1 704 34 628 3 355 6 225Target short/over 134 337 9 -28 394 -539 10 -317 6 225Semi-skilled and discretionary decision-making (T5 - T8)Actual 979 1 862 10 419 3 270 1 407 4 024 15 364 5 810 9 080 182Percentages 10,78 20,51 0,11 4,61 36,01 15,50 44,32 0,17 4,01 63,99 100,00Overall target 1 258 2 161 34 734 4 186 1 443 2 485 50 916 4 894 9 080Target short/over 279 299 24 315 36 -1539 35 552 9 080Unskilled and defined decision-making (T1 - T4)Actual 559 1 014 4 23 1 600 2 305 4 338 8 71 6 722 8 322 166Percentages 6,72 12,18 0,05 0,28 19,23 27,70 52,13 0,10 0,85 80,77 100,00Overall target 1 153 1 981 31 672 3 836 1 322 2 278 46 840 4 486 8 322Target short/over 594 967 27 649 -983 -2 060 38 769 8 322Race/gender rep. % 9,23 16,49 0,13 4,64 30,50 17,43 43,51 0,27 8,29 69,50 100.00TOTALS 2 355 4 205 33 1 184 7 777 4 446 11 095 70 2 114 17 725 25 502 510

Page 18: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 17

OVE

RVIE

WST

RUCT

URE

GO

VERN

AN

CED

IREC

TORA

TES

PLA

NN

ING

GLO

SSA

RY

Finance and Budget

In the coming financial year, the City will spend R27,1 billion providing services forits residents and investing in its long-term strategy of infrastructure-led growth

and development.The City’s functions, service delivery and growth are not possible without effectiverevenue collection and expenditure, excellent financial management and reporting,

and viable and sustainable budgeting.

In this sectionThe budget

The Medium-term Revenue and Expenditure Framework (MTREF)The City’s overall financial health

FIN

AN

CE

Page 19: City of Cape Town   Council Overview

Municipal finances are extremely com-plex: They involve public money, andas a consequence, are closely regu-lated by very specific and exactinglegislation that requires accountabili-

ty, cost-effectiveness, efficiency and transparency.As a municipality is an organisation that serves resi-

dents, the process of shaping strategies and decidinghow income will be raised, and how it will be spent, isa public process. Strategies and budgets must reconcilediverse economic, developmental and social needs withcurrent and future financial and social realities.

These needs and realities are ongoing, and meetingthem generally requires years of planning and imple-mentation within complex regulatory, logistical andpublic-participation parameters.

The City’s finances are therefore managed in thecontext of longer-term strategies and plans, such as thefive-year Integrated Development Plan (IDP). The IDPand related strategies, in turn, inform a three-year plan,the Medium-term Revenue and Expenditure Framework(MTREF). The annual budget, in turn, is shaped by theseplans and the prevailing economic realities.

Finance and oversightFinancing the services and infrastructure set out in thebudget requires setting and collecting rates and tariffs;careful management of income, revenue and debtors,and close control of how and where the money isspent. The procedures and frameworks for theseprocesses are set out in City bylaws and policies.

The City must also satisfy a range of oversight bod-ies, including the national Auditor-General, that it man-ages its finances and processes effectively, complieswith legal requirements, and does not engage inwasteful or fruitless expenditure.

It does this through effective corporate governance,in which it is a leader among South African metros.

Recent performanceThe City’s finances are well managed: The City collected94,39% of billing for rates and services as revenue dur-ing the past financial year, and spent 83,0% of its capi-tal budget and 97,4% of the operating budget.

In 2011, the City received its seventh unqualifiedaudit from the Auditor-General, and achieved a newmilestone by being the only one of the six metroscountrywide and the only municipality in the WesternCape to achieve a ‘clean’ audit.

In addition, Moody’s, a global rating agency, con-firmed Cape Town’s top rating of ‘Aa2.za with a stableoutlook’ for the sixth consecutive year.

This rating has helped the City to fund developmentby issuing three bonds to raise external finance. Thesebonds have raised R4,2 billion as part of the City’sR7 billion domestic medium-term note programme, andare listed on the Johannesburg Stock Exchange (JSE).The City has set aside R250 million for the repaymentof these bonds in 12 to 14 years.

The budgetThe annual budget describes all the City’s plannedexpenses and anticipated income for the next munici-pal financial year. It is also an organisational plan thatdescribes the City’s strategic focus in financial terms, ina manner that is affordable, credible and sustainable.

The R27,1 billion budget, up 17,5% on the previousyear’s R23,1 billion, is made up of two parts: an operat-ing budget and a capital budget. The budget is alsopresented in two stages: as a draft budget for com-ment and approval, and then as a final budget.

The budget is based on the income – or revenue –the City expects to derive from rates, service charges,and grants and subsidies.

The capital budgetThe capital budget is set aside for creating infrastruc-ture and services, such as roads, water, electricity, andthe many other utilities and services that Cape Townneeds in order to function, grow and provide economicopportunities to its residents.

The proposed capital budget is R5,070 billion, anincrease of 26,9% on the R3,995 billion capital budgetof the previous financial year. The biggest portion ofcapital expenditure will be in the areas of utility servic-es; transport, roads and major projects, and housing.• Utility Services R1,8 bn (35,6%)• Transport, Roads & Major Projects R1,8 bn (37,0%)• Housing R738 m (14,6%)Capital expenditure highlights include (these are mutu-ally exclusive):• R58 million for reconstruction of metro roads• R1,2 billion for IRT-related infrastructure • R804,6 million for electricity infrastructure • R740,5 million for housing • R377,5 million for wastewater management • R284,2 million for solid waste management • R134,2 million for sport and recreation

The operating budgetThe operating budget is used to cover the ongoingexpenses the City incurs in its operations. It coverssalaries, maintenance, bulk purchases of electricity andwater, payment to contractors for services rendered andgoods supplied, interest and loan payments, and anyother running costs.

The operating budget describes the City’s projectedexpenditure. For the 2011/12 financial year, this expen-diture is expected to be R22,1 billion, a 13,3% increaseon the R19,5 billion for the previous financial year.

Staff-related costs are the single biggest expendi-ture, at more than R7 billion – 32,0% of the total oper-ating budget. Bulk purchases of electricity and waterare the next-biggest, at R5,7 billion – 26,2% of thetotal operating budget.

Budgeted incomeIncome is derived from a variety of sources, includingproperty rates, service charges, rentals, interest, fines

18 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

KEY FACTS• The budget for the

2011/12 financial yearis R27,1 billion, a17,5% increase overthe previous year’sR23,1 billion.

• The operating budget isR22,1 billion, a 13,3%increase on the R19,5billion for the previousfinancial year.

• The capital budget isR5,070 billion, anincrease of 26,9% fromR3,995 billion in theprevious financial year.

• The biggest capitalexpenditure items willbe in the directoratesof Utility Services,Transport, Roads andMajor Projects andHousing.

• Operating income willrise from R19,4 billionto R21,9 billion.

• The City collected94,39% of billing forrates and services.

• The City spent 83,0%of its capital budgetand 97,4% of itsoperating budget in2009/10.

• The City received itssixth unqualified auditfrom the nationalAuditor-General.

• Cape Town has anexcellent investmentrating of ‘Aa2.za’.

Page 20: City of Cape Town   Council Overview

OVE

RVIE

WST

RUCT

URE

GO

VERN

AN

CED

IREC

TORA

TES

PLA

NN

ING

GLO

SSA

RY

and permits, and transfers from National Treasury.For the coming financial year, operating income(excluding accumulated surplus allocations) willincrease from R19,4 billion to R21,9 billion.

This 12,8% rise in revenue is necessary, in part, forthe appointment of additional staff in critical positions,and to meet the nationally negotiated and agreed paygranted by the SA Local Government Association’s(SALGA) national bargaining council in 2010.

The operating income will be funded through naturalgrowth and a range of rates and tariff increases.

Service charges for electricity, water and sanitation,and solid waste removal are the single biggest sourceof income, followed by rates (property taxes).

Rates are based on the market value of more than870 000 individual properties. These property valuesare adjusted at least every four years through a generalvaluation (GV), the most recent of which was conduct-ed in 2010, and supplementary valuations as necessary.

The amount that property owners pay in rates, the‘cents-in-the-rand’ rate, is set in the budget every year,and this year increased by 5,9%.

Tariffs for services such as electricity and water arealso set every year, as are the various forms of reliefand exemption designed to help those residents mostin need, such as the indigent and the elderly.

Transfers from National Treasury take many forms,including municipal infrastructure grants, housing allo-cations and social grants. These transfers are made interms of complex Division of Revenue Act (DORA) for-mulas designed to ensure that municipalities receive an‘equitable share’ of the allocations from the fiscus.

Medium-term Revenue and Expenditure FrameworkAlthough the budget sets out the City’s expenditure andincome for one financial year, it is drafted within thecontext of a longer-term plan, known as the Medium-term Revenue and Expenditure Framework (MTREF).

The MTREF sets out the economic context andassumptions that shape the compilation of the City’sbudget for the next three years. It factors in a widerange of variables, such as the economic climate, inter-est rate projections, anticipated increases in the cost ofelectricity and salaries, and the infrastructure invest-

Property rates,penalties &

charges21,12%

Service charges –electricity revenue

37,08%

Gains on disposal of PPE(plant, property and equipment)

Employee-relatedcosts

32,00%

Remunerationof councillors

0,49%

Debt impairment4,75%

Depreciation &asset impairment

6,31%

Service charges– water8,34%

Service charges– sanitation

4,52%

Service charges– refuse3,74%

Service charges– other2,85%

Rental of facilities& equipment

1,20%

Interest earned1,88%

Fines, licences,permits & services

1,52%

Transfers recognised– operational

8,66%

Bulk purchases26,21%

Contractedservices10,44%

Transfers &grants0,39%

Other expenditure15,93%

Other revenue8,60% 0,48%

Finance charges3,47%

PROJECTED INCOME

PROJECTED EXPENDITUREPROJECTED EXPENDITURECategory RandEmployee-related costs 7 063 638 894 Remuneration of councillors 108 785 820 Debt impairment 1 048 469 690 Depreciation & asset impairment 1 392 823 441 Finance charges 766 367 316 Bulk purchases 5 785 875 517 Contracted services 2 304 610 910 Transfers and grants 86 418 574 Other expenditure * 3 516 698 715 Total expenditure 22 073 688 877

PROJECTED INCOMECategory RandProperty rates 4 541 984 647 Property rates: Penalties and charges 85 759 268 Service charges: Electricity 8 125 663 538 Service charges: Water 1 828 095 026 Service charges: Sanitation 991 117 664 Service charges: Refuse 820 410 087 Service charges: Other 625 371 141 Rental of facilities and equipment 264 043 390 Interest earned on external investments 192 426 077 Interest on outstanding debtors 218 335 000 Fines 186 892 388 Licences and permits 30 045 985 Agency services 115 993 082 Transfers recognised 1 897 815 788 Other revenue * 1 884 096 166 Property, plant and equipment (PPE) 105 000 000 Total income † 21 913 049 247 * Too detailed to describe in these simplified tables.

Please refer to the full budget documents, availableon CityWeb and the City’s website.

† Income excludes accumulated surplus allocation.

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 19

FIN

AN

CE

Page 21: City of Cape Town   Council Overview

20 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

ment requirements.For example, adaptations have been made to the

previous MTREF to take account of changed conditions,which include lower interest rates, sharply higher ener-gy costs, the national three-year salary settlement, andlower collection ratios.

The MTREF is reviewed every year to ensure that thebudget is affordable and sustainable over at least themedium term.

The budget processAt the beginning of the financial year, in July, theprocess for determining the next budget begins, whena schedule for compiling a draft budget is tabled beforeCouncil. The timetable is then advertised to residents.The next steps are as follows:• August: Mayco and the Executive Management Team

(EMT) investigate past performance and trends inoperating and capital budgets; identify budget reali-ties, and set the criteria and basis of the City’s budg-et prioritisation process. Engagement with ward com-mittees to determine specific requirements begins.

• September: Service departments submit their budgetproposals for consideration to their portfolio com-mittees. The City consults with Province, neighbour-ing municipalities and other organisations.

• October to January: The EMT and the Budget Steer-ing Committee consider various scenarios of theMTREF forecasting model to ensure a sustainablefuture product.

• January: A three-year budget forecast (MTREFmodel) is submitted to Mayco for endorsement.

• March: The draft operating and capital budgets aretabled before Council.

• April: The budget, Integrated Development Plan (IDP)and tariff proposals are published for public com-ment and consultation.

• May: Comments received as a result of the publicparticipation process are submitted to the BudgetSteering Committee and Mayco.

• The full Council votes to adopt the budget.

The Budget Steering CommitteeThe Budget Steering Committee is ultimately responsi-ble for ensuring that an affordable and sustainablebudget, which best serves the City’s residents andstrategies, is produced, accepted and implemented.

The Committee is composed in terms of the Munici-pal Budget and Reporting Regulations of April 2009,which stipulate that the Committee must consist of atleast the following persons:• the councillor responsible for financial matters;• the Municipal Manager;• the Chief Financial Officer;• the senior managers responsible for at least the

three largest budget votes in the municipality;• the manager responsible for budgeting;• the manager responsible for planning; and• any technical experts on infrastructure.

The City’s overall financial health

Cash, investments, and funding of commitmentsThe cash and investments balance as at 31 March 2011was more than R6 billion. All the City’s statutory com-mitments are fully cash-backed, as are the reserves thatare set aside for future capital expenditure and contin-gencies.

The various cost-efficiency initiatives had a positiveimpact on cash flows, as did the debt collection drives,which enabled the City to finance its capital pro-gramme for the current year internally. Even though theCity will finance its capital programme internally, it willnevertheless remain in a positive cash flow position.

Cash coverage of normal operationsThe City’s cash coverage remains strong, and is suffi-cient to cover two months of average monthly pay-ments as and when they fall due, even in a crisis situa-tion, such as during rates and services boycotts.

This position is despite the City opting not to raiseany loans for its current capital programme. The pro-jected forecast to date gives three months cash flowcoverage, which indicates the City’s ability to supportits budget sufficiently.

Creditors outstandingInformation relating to creditors outstanding for morethan 30 days, along with reasons for delayed settle-ment, is included on the accompanying CD.

Current collection levels and debtors outstandingThe current collection level on rates and services is94,39%, and the total for debtors outstanding for morethan 30 days for rates and services is R3,983 billion.

Loans, and finance and redemption paymentsThe City’s current balance of outstanding loans isR5,7 billion, of which R4,2 billion are in bonds. The Cityhas, to date, set aside funds of R250 million for therepayment of these bonds in 12 to 14 years.

Interest and redemption payments for the year totalR674 million for interest and R486 million (inclusive ofsinking funds) for redemption during 2010/11, at anaverage loan rate of 11,6%.

2009/10 audit outcome, and audit issuesThe City received an unqualified audit report for the2009/10 financial year from the Auditor-General, and,in terms of Section 124(e), the report contains noissues for which management comments and correctiveactions are required. The City was the only SouthAfrican metro to receive a ‘clean’ audit report.

Management issues of a housekeeping nature wereidentified and are being dealt with on a monthly basisand reported quarterly to the Audit Committee. TheAuditor-General performed a walk-through on theresolved issues, and is satisfied with their status asreported.

KEY DOCUMENTS• The 2011/12 budget• The IDP (Integrated

Development Plan)• The annual report for

2009/10• The Spatial Develop-

ment Framework• The April financial

statementsThese documents areavailable in PDF formaton the accompanying CD,on CityWeb and the City’swebsite.

Page 22: City of Cape Town   Council Overview

The City of Cape Town is funded by public money, and is therefore expected toexercise the highest levels of corporate governance.

This goes far beyond compliance with the extensive and comprehensivelegislation – the City’s governance systems are designed to meet or exceed the

highest professional standards and recommendations.

In this sectionThe Directorate: Internal Audit (DIA)

The Audit Committee The Standing Committee on Public Accounts (SCOPA)

The anti-corruption hotline

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 21

OVE

RVIE

WST

RUCT

URE

FIN

AN

CED

IREC

TORA

TES

PLA

NN

ING

GLO

SSA

RY

Governance

Good corporate governance touches every aspect of the organisation, from managing expenditure effectively to controlling waste and fraud.G

OVE

RNA

NCE

Page 23: City of Cape Town   Council Overview

22 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

The term ‘corporate governance’ refers tothe set of laws, processes, customs, policiesand institutions affecting the way anorganisation such as the City is directed,administered or controlled. It also includes

the relationships among the many stakeholdersinvolved, and the goals for which the City is adminis-tered.

Many aspects of corporate governance, such as anindependent audit committee, are legal requirementsset out in the legislation that applies to municipalities,and are monitored by authorities and institutions suchas the national Auditor-General.

However, truly effective governance goes beyondlegislative compliance: It embraces local and interna-tional best practice, and strives to strengthen the pro-fessional standards and ethics within the organisation.

The City is one of the first municipal entities to havetaken several important measures: the formation of aStanding Committee on Public Accounts (SCOPA), theinstitution of an anti-corruption hotline, and the formaladoption of the King Code of Governance Principles forSouth Africa, 2009 (‘King III’).

The King recommendations are considered to be oneof the best codes of governance worldwide, and KingIII has broadened the scope of governance into onewhere the core philosophy revolves around leadership,sustainability and ethical corporate citizenship.

The Directorate: Internal AuditAs per King III, a key principle of good corporate gover-nance is that a combined assurance model should beapplied to provide a co-ordinated approach to all assur-ance activities.

This combined assurance must be sufficient to satisfythe Audit Committee that any significant risk areas fac-ing the organisation are adequately addressed.

The Directorate: Internal Audit (DIA) developed acombined assurance framework, which details keyassurance providers, roles and responsibilities, as wellas the type, level and frequency of interaction required.In line with National Treasury guidelines, assuranceproviders are categorised according to the ‘three linesof defence’ model:

First line of defenceManagement is responsible for establishing, maintain-ing and ensuring proper governance, risk managementand internal control processes. Management shouldconsider risks, determine how much risk is acceptable,and strive to maintain risk within those parameters.

Management should provide at least partial assur-ance on all areas. Their reports and associated repre-sentations will offer the audit committee significantassurance in a well-managed organisation.

Second line of defenceThis constitutes functions that provide significant assur-ance, or perhaps in some cases more accurately, ‘reas-

surance’ that management is indeed on top of the reg-ulatory, statutory, environmental, ethical and qualityrequirements and associated risks, critical to the ongo-ing and future success of the organisation.

Examples of key assurance providers in this categoryinclude:• Integrated Risk Management (reporting to, among

others, the Risk Committee);• Forensic Services;• Legal Services;• Environmental Resource Management;• Occupational Health and Safety; and• The City Ombudsman.

Third line of defenceThis is made up of independent assurance providersand oversight committees, such as:• Internal Audit;• External Audit;• Audit and Performance Committee;• Standing Committee on Public Accounts (SCOPA);

and• Civilian Oversight Committee (CIVOC).The combined assurance framework was approved bythe Audit Committee, and implemented by internalaudit and other assurance providers.

The DIA, with input from other assurance providers,reports quarterly to senior management and the AuditCommittee on the implementation of the combinedassurance framework. The framework will be evaluatedand reviewed annually to ensure its adequacy, effec-tiveness, efficiency and relevance.

Each oversight committees has specific terms of ref-erence and requirements regarding its composition.

The Audit Committee Every municipality is obliged to establish an independ-ent audit committee in terms of Section 166 of theMunicipal Finance Management Act No. 56 of 2003(MFMA), as amended.

The Audit Committee’s function is to assist Councilin discharging its duties relating to:• the safeguarding of assets;• the operation of adequate systems;• control processes; and• the preparation of accurate financial reports and

statements in compliance with all applicable legalrequirements and prescribed accounting standards.

The Audit Committee does not have executive responsi-bility, and acts primarily in an oversight capacity tomanagement and Council.

The terms of reference of the Audit Committee wererevised, updated and approved by Council on 10 June2009 for the 2009/10 financial year, and include thefollowing:

MembershipThe Audit Committee’s terms of reference require aminimum of five independent members, who collective-

Page 24: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 23

OVE

RVIE

WST

RUCT

URE

FIN

AN

CED

IREC

TORA

TES

PLA

NN

ING

GLO

SSA

RY

ly have the requisite knowledge of auditing, risk man-agement, finance, governance, performance manage-ment, operations, information technology, relevantfinancial reporting and legislative frameworks.

No councillor or employee of the City may be amember of the Audit Committee. Council approves theappointment of the chairperson from the members ofthe Audit Committee. The appointment of members ofthe Audit Committee should be approved by Council fora term of three years, and, if re-elected, members mayserve for only one further three-year term.

ResponsibilitiesThe responsibilities of the Audit Committee includeoversight with regard to:• the Auditor-General;• financial statements;• internal control;• internal audit;• performance management;• entities; and• risk management, including fraud and information

technology-related risks.

AuthorityThe Audit Committee shall have direct access to:• the Mayor;• the Mayoral Committee (Mayco);• the City Manager and executive directors;• the Chief Audit Executive;• the Auditor-General;• any councillor(s); and• the Standing Committee on Public Accounts (SCOPA).

MeetingsThe Audit Committee should meet at least four timesper annum as per its approved terms of reference,although additional special meetings may be called.Although no specific meetings are held with the Audi-tor-General’s office, they are in attendance at all AuditCommittee meetings.

Reporting and accountabilityThe chairperson of the Audit Committee accounts tothe City Manager, Mayco and Council for the Commit-tee’s activities and any other matters arising from theabove responsibilities. The minutes of all meetings ofthe Audit Committee are submitted to Mayco andCouncil, and the chairperson of the Audit Committeemeets with the City Manager and the Mayco memberfor Finance twice a year to discuss issues of concern.The effectiveness of the Committee is monitored byMayco and Council annually.

The performance of the Audit Committee wasassessed through a self-assessment and a stakeholderassessment. The overall score of the self-assessmentwas rated as ‘good’, while the stakeholders rated theAudit Committee’s performance as ‘excellent’.

Flowing from the outcome of the performance

assessment, the Audit Committee has compiled anaction plan which identified specific activities toaddress the areas requiring improvement. The AuditCommittee has continued to monitor progress in termsof the action plan on a quarterly basis.

Standing Committee on Public AccountsInternal Audit assisted the Standing Committee on Pub-lic Accounts (SCOPA) – the first effectively functioningSCOPA of a municipality in the country – in creatingwork methods that have resulted in establishing abest-practice model for the rest of the country.

The oversight role of SCOPA has become moreestablished in the City, as indicated by the mattersreferred to it for investigation and recommendations,which were supported by Council for implementation.

SCOPA successfully conducted the oversight process,which included reviewing the City’s annual report, andholding management accountable for the handling ofpublic funds and resources.

The SCOPA terms of reference were approved byCouncil on 31 May 2006. Membership is defined byCouncil, and comprises councillors representing variouspolitical parties. The Committee is chaired by a council-lor from the opposition party.

The anti-corruption hotlineThe City has a dedicated anti-corruption hotline, whichmay be used to report any instances of alleged corrup-tion involving City officials.

Any employee or member of the public may call theCity’s toll-free anti-corruption hotline on 0800 32 31 30to report suspected corruption.

The City is always grateful to employees who assistin ensuring that its officials deliver the highest possiblelevel of service. This hotline has greatly assisted Councilin rooting out corruption in the past.

Corruption includes any number of illegal activities,ranging from the misappropriation of funds, to nepo-tism, fraud and fuel siphoning. The City adopts a zero-tolerance approach to all forms of corruption – eventhose that may seem minor.

Most fraud involves several parties. The “Resist,Refuse, Report” slogan encourages anyone who isaware of corruption to speak up and break the cycle.

When a case of alleged corruption is reported to thehotline, it is logged for investigation. If the investigationproves that the allegation is true, the City takes actionto deal with the offender. The prosecution of officials forcorrupt activities serves as a warning for other officialsthat this sort of conduct will not be tolerated.

Anyone who calls the hotline will be asked to pro-vide details of the incident, the names of the individu-als involved, and the date(s) on which the incidentoccurred.

Complainants are welcome to remain anonymous,but are advised to provide their own details to assist inany investigation. Complainants may be called uponduring the investigation to submit an affidavit.

GO

VERN

AN

CE

Page 25: City of Cape Town   Council Overview

24 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

Page 26: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 25

OVE

RVIE

WST

RUCT

URE

GO

VERN

AN

CEG

OVE

RNA

NCE

PLA

NN

ING

GLO

SSA

RY

The City’s directorates

The City’s service delivery sectors are divided into 12 directorates, each withfocused and clear roles and responsibilities. They provide organisational support,

services and infrastructure to residents across the metro. Each is responsible for itsown planning and budget in accordance with the City’s overall strategy.

In this sectionThe Office of the City Manager

Internal AuditCommunity ServicesCorporate Services

Economic, Social Development & TourismFinance

City HealthHousing

Safety & SecurityStrategy & Planning

Transport, Roads & Major ProjectsUtility Services

DIR

ECTO

RATE

S

Page 27: City of Cape Town   Council Overview

26 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

Page 28: City of Cape Town   Council Overview

The Office of the City Manager of the City ofCape Town is responsible for the overallleadership of the organisation, and forensuring statutory compliance and goodgovernance. It is committed to the provision

of sound governance systems, processes and proceduresto facilitate decisions taken by the City and its leaders.

The City Manager currently fulfils a dual role in thecontext of the City’s present structures, both as organi-sational and directorate head.

He is required, as City Manager, to carry out theresponsibilities as listed under Section 55 of the Munic-ipal Systems Act, in terms of which he is the head ofthe administration and the City’s accounting officer.

The City Manager is also the executive head of theOffice of the City Manager. This directorate supportsthe executive and political decision-making process,and ensures compliance with statutory requirementsand City policies and procedures.

The Office of the City Manager consists of the fol-lowing departments:• Executive Support (41 staff)• Forensic Services (19 staff)• Governance & Interface (218 staff)• Integrated Development Planning &

Organisational Performance Management (20 staff)• Ombudsman’s Office (12 staff)

Executive SupportExecutive Support renders a specialised strategic and

operational support service to the City’s executive andadministrative decision-making authorities. It develops,manages and maintains sound governance systems,processes and procedures as a key component of theprofessional support given to Council and the CityManager.

These ensure that Council’s directives are carried out(in consultation with directorates and departments),and that a structured database of tools and informa-tion is in place to improve the effectiveness of decision-making bodies and to ensure that access to records ofdecision is always available.

The Department also ensures that the City’s lan-guage policy is implemented to enable effective inter-nal and external communication.

Forensic ServicesForensic Services serves to promote justice in theadministration of matters in respect of which the Cityhas executive authority, thereby ensuring fairness in theadministration of practices, processes and policies.

The Department provides a proactive and reactiveinvestigative forensic and advisory service, managesthe operations of the fraud hotline, prepares and imple-ments fraud awareness and anti-corruption policies,and conducts departmental fraud reviews.

Governance & InterfaceGovernance & Interface department provides a diverserange of expertise to ensure the promotion of organisa-

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

DIR

ECTO

RATE

SPL

AN

NIN

GG

LOSS

ARY

City ManagerAchmat Ebrahim5th floor, Podium

Executive Management Team (EMT)

Executive Personal AssistantDianne de Vos

5th floor, Podium

Strategic AdvisorArno Vorster

5th floor, Podium

Legal AdvisorLes Barchard

5th floor, Podium

Director:Executive Support

Gillian Kenhardt5th floor, Podium

OmbudsmanMbulelo Baba

3rd floor, Tower Block

Chief Forensics:Forensic Services

Vincent Botto44 Wale St

Acting Director:Governance & Interface

Trevor Hollis-Turner5th floor, Podium

Director:IDP & OPM

Martin van der Merwe13th floor, Tower Block

OFFICE OF THE CITY MANAGER – STRUCTURE AND KEY PERSONNEL

Office of the City ManagerExecutive Support | Forensic Services | Governance & InterfaceIntegrated Development Planning (IDP) | Ombudsman’s Office

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 27

KEY FACTSStaff complement

307Operating revenue

R2 244 000Operating expenditure

R320 441 000Capital expenditure

R20 055 000

Page 29: City of Cape Town   Council Overview

28 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

tional values and good governance principles. Its serv-ice offerings include the following:• Providing management, legal, administrative and

logistical services to Council, political executive offi-cers and subcouncils

• Managing and co-ordinating Council’s public partici-pation process

• Managing and executing executive special projects• Facilitating, co-ordinating and promoting intergov-

ernmental and international relations• Planning, managing and executing designated proj-

ects utilising internal, external and internationalfunding

• Ensuring execution of Council’s social crime preven-tion initiatives

• Providing executive, legal and management support,including administrative services, to the City’s 23subcouncils and 111 ward participatory structures

• Facilitating, co-ordinating and promoting liaison withthe designated organs of state, e.g. the IndependentElectoral Commission.

Integrated Development PlanningThe Integrated Development Planning & OrganisationalPerformance Management (IDP&OPM) Departmentguides, directs and facilitates the development, imple-

mentation and monitoring of, and reporting on, theCity’s Integrated Development Plan (IDP), the corporateService Delivery Budget Implementation Plan (SDBIP)as well as directorate SDBIPs.

This includes the production of the City’s annualreport. This department facilitates the implementationof the organisational performance management systemas well as the performance management plans andevaluation processes for Section 57 (contract) appoint-ments, and also executes special projects, such as theCity’s partnership with higher learning institutions.

Ombudsman’s OfficeThe Ombudsman’s Office serves as a catalyst betweenthe administration and its customers; as a neutral thirdparty that represents the interests and rights of theCity’s customers by holding civil servants accountableto the people.

The Office investigates and facilitates the resolutionof matters regarding alleged maladministration, injus-tice or poor service delivery by, or gross negligence of,any City employee, and institutes formal mediationprocesses.

It also promotes a co-operative relationship betweenthe City and a number of Chapter 9 institutions, suchas the Office of the Public Protector.

KEY CITY POLICIES Name of policy Purpose

Public Engagement Policy Sets out a framework for public participation processes

External Relations Policy Provides an implementation protocol applicable to international and inter-governmental relations

KEY PROCESSES AND POLICIES REQUIRING COUNCIL’S INPUTName of policy Purpose

Subcouncils Bylaw Provides for the establishment and functioning of subcouncils

Subcouncils Rules of Order Sets out procedures for subcouncil meetings

Ward Forums/CommitteesRules of Establishment andOrder

Sets out procedures for the establishment and functioning of ward forums

System of Delegations Aims to maximise administrative and operational efficiency, and provides for adequate checks and balances bydelegating powers, functions and duties

KEY PROJECTSName of project Purpose

Electronic agenda To evaluate the current agenda production and distribution process in order to make the process more efficientand effective and achieve savings on printing of agendas

Sustainable Communities(VPUU) phases 3 and 4

To contribute to violence prevention in Khayelitsha, and consequently improve the quality of life of the popula-tion

Community DevelopmentWorkers – pilot project

To implement an agreement between the City of Cape Town and the Provincial Government to run a six-monthpilot project

Councillors’ inductionprogramme

To introduce newly appointed councillors to the City of Cape Town, and orientate them with regard to the City'spolicies and local government processes

Political support staff –smooth transition

To ensure an efficient and effective administrative support service to the political leadership

Improvement tosubcouncils

To upgrade subcouncil offices and improve the interface between Council and the public

Mayoral projects To plan and implement projects identified by the Executive Mayor

KEY CONTACTSThe City ManagerAchmat Ebrahim

Tel021 400 1330

Fax021 400 1332

[email protected]

Executive AssistantDianne de Vos

Tel021 400 1331

Page 30: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 29

The Internal Audit Directorate is an inde-pendent directorate of the City of CapeTown, and is a significant contributor togovernance within the organisation. Itsfunction is a requirement of the Municipal

Finance Management Act (MFMA), Act 56 of 2003, andit is largely directed by the standards for the profes-sional practice of internal auditing of the internationalInstitute of Internal Auditors (IIA).

The Directorate is mandated through its charter toprovide independent, objective assurance and consult-ing services, geared towards adding value and improv-ing the City’s operations.

It helps the organisation accomplish its objectives bybringing about a systematic, disciplined approach toevaluate and improve the effectiveness of risk manage-

ment, control and governance processes.Internal Audit’s plans, which are aligned with the

City’s strategy and most pertinent risks, are supportedby senior management and approved by the independ-ent Audit Committee.

It communicates audit results to the various levels ofmanagement, including executive directors and the CityManager, as well as to other assurance providers andthe Audit Committee.

2009/10 internal audit outcomesOutcomes of the 2009/10 internal audit conducted bythe Directorate included:

Execution of the annual internal audit plan In terms of the MFMA and IIA standards, the Direc-

PLA

NN

ING

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

DIR

ECTO

RATE

SG

LOSS

ARY

Internal AuditInternal Audit

KEY FACTSStaff complement

54Operating expenditure

R32 964 000Capital expenditure

R171 000

Internal Audit provides and implements the essential governance controls that make the City work for its residents and its staff.

Page 31: City of Cape Town   Council Overview

30 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

torate developed and executed its risk-based internalaudit plans. A three-year rolling audit plan and a one-year operational audit plan were approved on 10 June2009 by the Audit Committee.

Internal Audit reconsiders its audit plans quarterly toensure that audit projects undertaken are aligned withthe most pertinent risks. A revised operational auditplan was approved on 25 January 2010, and 81,67% ofthe planned audit projects were completed.

Monitoring the resolution of audit findingsThe “percentage audit findings resolved as per follow-up audits” is a corporate scorecard indicator. The Direc-torate measured results through follow-up audits todetermine the status of corrective actions implementedto address weaknesses identified per audit.

The target was introduced in the 2007/8 financialyear as the first reported measurement on the imple-mentation of internal audit recommendations. The tar-get was not achieved due to the lack of business imple-mentation of audit recommendations within agreedtimeframes.

This indicator was removed from the corporatescorecard with effect from 2010/11. The possible nega-tive impact of the removal of this indicator was report-ed to the Audit Committee, the Mayoral Committee(Mayco) and Council.

Quality assurance improvement programme In line with the requirements of the IIA, the Directoratehas a quality assurance improvement programme toenable an evaluation of its conformance with the IIAstandards and code of ethics. The programme alsoassesses the efficiency and effectiveness of the internalaudit, and identifies opportunities for improvement.

The programme includes ongoing quality assessment

reviews on individual audit projects, annual internalquality assessments and external quality assessments.In terms of the IIA standards, external assessmentsmust be conducted at least once every five years by aqualified, independent reviewer or review team fromoutside the organisation. An external quality assurancereview was completed in June 2009 and rated theInternal Audit Directorate as operating at the highestlevel of conformance in terms of the IIA standards, andat the second-highest level of maturity in terms of theprivate-sector internal audit capability maturity model.

Annual assessment of the City’s internal controls A total of 46 reports were issued during 2009/10. Themajority of reports received a “caution” / “majorimprovements needed” rating, which supports InternalAudit’s annual assessment of the City’s system of inter-nal controls.

Highlights for 2009/10• The achievement of a “Generally Conformed” rating

as per internal quality assessment reviews• The formulation, adoption and roll-out of a commu-

nication strategy across all directorates• The facilitation of Council’s adoption of King III• The issue of the annual report providing an opinion

on the system of internal controls within the City• The formulation, adoption and implementation of

the combined assurance framework for the City• The formulation of a continuous auditing strategy• The successful completion of the control self-assess-

ment pilot project• The development and implementation of a compe-

tency framework for the Directorate• The provision of support to oversight committees,

such as the Audit Committee and SCOPA.

KEY PROJECTSName of project Purpose

Control self-assessment The Directorate conducted its first control self-assessment (CSA) engagement during the 2009/10 financial year.The Strategic Human Resource (HR): Recruitment and Selection Department was used as a pilot for the CSA, forwhich a final CSA report was issued during the quarter. CSAs will be further rolled out in the City and are includ-ed in the Directorate’s plan. The primary objectives of CSAs are to empower business with a process that allowsmanagement and work teams, who are directly involved in a business unit, function or process, to participate ina structured manner for the purpose of:• creating risk and control awareness among management and staff; • identifying risk exposures of the selected activity;• assessing the control processes that mitigate or manage those risks;• identifying and developing action plans to reduce risks to acceptable levels; and• communicating final results in a formal report to management.

Continuous auditingstrategy

The Directorate developed a continuous auditing strategy and completed a pilot project during the 2009/10financial year. It is to be further rolled out across the City to enable line management to obtain on-going assur-ance regarding the accuracy and validity of large volumes of data flowing through their systems, through the iso-lation and containment of control failures on a timely basis.

Chartered AccountantsAcademy

National Treasury, accredited by the South African Institute of Chartered Accountants (SAICA) as an approvedtraining organisation, approached the Internal Audit Directorate to facilitate the establishment of the City as aprimary site for training candidate chartered accountants. The training programme commenced during 2009/10and implementation is co-ordinated by Internal Audit.

KEY CONTACTSChief Audit Executive

Zulpha AbramsTel

021 400 1337Fax

021 418 8040E-mail

[email protected]

Executive AssistantSeu-ling Pastor

Tel021 400 1338

Page 32: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 31

The Community Services Directorate isresponsible for providing community facili-ties across the city, to support and promotehealthy lifestyles and to facilitate communi-ty development programmes.

Often, these programmes involve collaboration andpartnerships with churches, community organisations,NGOs, the corporate sector, different tiers of govern-ment and other stakeholders.

City ParksThe City Parks Department is responsible for greening,conserving and managing zoned public spaces, includ-ing 11 district parks, 3 133 community parks, 36 ceme-teries, one crematorium, and 1 862 hectares (ha) of

centre islands, nature sensitive areas and recreationalareas alongside rivers and water bodies.

Other core functions include the planting of trees,supporting the protection of biodiversity, and theimplementation of water-saving initiatives.

The 3 133 community parks are maintained to astandard that ensures that they are in a condition forcommunities to use at all times.

To ensure that parks are maintained in an equitablemanner across the city, a uniform set of maintenancestandards for all maintenance functions have beendeveloped and implemented. The selected standardsfocus on mowing – which is set to at least nine cutsper year – and to keep these parks clean by conductinglitter picking on a weekly basis.

PLA

NN

ING

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

DIR

ECTO

RATE

SG

LOSS

ARY

Community ServicesCity Parks | Library and Information Services | Sports, Recreation & Amenities

KEY FACTSStaff complement

4 165Operating revenue

R72 904 000Operating expenditure

R1 234 456 000Capital expenditure

R145 037 000

The City provides a wealth of facilities for learning and leisure.

Page 33: City of Cape Town   Council Overview

32 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

KEY COMMUNITY SERVICES POLICIES Name of policy Department and purpose

City Parks

Mowing of ResidentialVerges Policy

To ensure that City Parks carries out mowing on zoned public open spaces only and not on residential verges

Tree Policy To ensure a consistent approach to the planting, maintenance and removal of trees, and to encourage best horti-cultural practices when dealing with trees

Interment/Burial Strategy To provide interment services that meet the needs of the community in an effective and efficient manner

Public Parks Bylaw To regulate the admission of persons, animals and vehicles to public parks in order to provide for the use andenjoyment of public parks, and to determine conduct that will not be permitted within public parks

Library and Information Services (LIS)

General Legislation informs provision of service. As LIS is an unfunded mandate, national or provincial legislation applies(Constitution, Schedule 5A, Provincial Library Ordinance, No. 16 of 1981 and Standard Bylaw PN 640 of 1990).These documents are available from the Director: LIS

LIS Strategy: Minimumservice levels (open hours)

Three tiers (city-wide – open 63 hours per week; regional – open 45 hours per week; community libraries – open35 hours per week); further information can be obtained from the Director: LIS

KEY COMMUNITY SERVICES PROCESSES AND POLICIES REQUIRING COUNCIL INPUT Name of policy Department and purpose

City Parks

Cemetery Bylaw andConsolidation of PublicOpen Spaces Approach

To repeal the Cape Metropolitan Council: Bylaw for Cemeteries and Crematoria, 2000, to provide for the control,regulation and development of cemeteries, the disposal of corpses and the interment of human remains in a dig-nified manner, and matters connected therewith

Consolidation of PublicOpen Spaces Approach

To develop a methodology that can be used to:• identify and reserve adequate usable public open spaces to address the recreational needs of future genera-

tions in an equitable manner; and• reduce the number of land assets to be managed and thereby release budgets for improving the standard of

service delivery and the quality and sustainability of parks

Greening Strategy To provide, improve and enhance the value of green spaces and the environment in a qualitative and sustainablemanner, to be used for passive and active recreation and social activities, to contribute aesthetic value to theurban landscape, and to address the effects of global warming

Facility Management To provide a strategic framework for the provision and integrated management of urban public open space facili-ties so as to optimise the experience of current and future users of the facility

Planning and DevelopmentStrategy

To provide planning services that respond to the needs of the community and align with the City’s policies andprocedures in a manner that is both efficient and effective

Library and Information Services

Implementation protocolNone at this stage

This protocol is intended to formalise the arrangement between the Province and the City with respect to therendering of public library services. The draft is currently being considered by the MEC for Arts and Culture,whereafter it will be returned to the City. It is anticipated that this will be signed off shortly. Council supports theassignment of this function to the City, but the process must be undertaken in terms of applicable legislation.

Sports, Recreation & Amenities

Policy for Use of SportsComplexes

This policy will provide and clarify the rights, roles and responsibilities of the various role players (the City andcommunity user groups) in effectively managing sports complexes. The policy will provide clarity on usage, vend-ing and trading, advertising, maintenance obligations, seasonality and tariffs.

Ongoing challengesOngoing challenges include the level of vandalism andanti-social behaviour at public parks, which increasesrepair costs and has a negative impact on the ability toadhere to maintenance standards.

To address the escalating city burial demand result-ing from population growth and an earlier deathoccurrence due to infectious diseases, City Parks hascommenced a process to identify, reserve and in duecourse develop new burial areas to cater for futureurban development (i.e. 10-15-year scenario) withinthe city’s urban edge.

Strong competition for scarce metropolitan land and

the poor environmental performance of certain ceme-teries, given the high winter water-table of the CapeFlats, have prompted the City to pursue other intermentoptions to supplement traditional in-ground burial,including cremation and other corpse reduction tech-nology, above-ground interment options, and re-employment of existing and ‘closed’ cemeteriesthrough grave re-use.

Library and Information ServicesTwo city-wide libraries, 22 regional libraries, 74 com-munity libraries, four satellite libraries and three mobilelibraries provide residents with access to services and

Page 34: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 33

resources required for their information, education, cul-ture and recreational needs. Library and InformationServices has more than 745 000 members.

Programmes at the libraries offer a variety of devel-opmental activities, ranging from storytelling, schoolholiday and reading programmes to peer leadershipand capacity-building programmes.

Three categories of minimum open-hour standardsare set for libraries:• City-wide libraries at 63 hours per week• Regional libraries at 45 hours per week• Community libraries at 35 hours per week

Friends and volunteersProperly constituted Friends of the Library organisa-tions and/or volunteers assist at more than 30 Citylibraries, helping to meet minimum opening hours,donating funding, or through in-kind contributions suchas assisting with shelving of library materials. Everyeffort is being made to encourage the establishment ofFriends organisations in more libraries.

Being an unfunded mandate, the City will continuewith efforts in reaching a resolution with Province onthe funding of library services in Cape Town.

Implementation of the planned new library automat-ed management system will make library processesmore efficient. With external funding received, one newlibrary, Kuyasa Library in Khayelitsha, is planned for the2011/12 financial year.

Sports, Recreation & AmenitiesThe Sports, Recreation & Amenities Department pro-vides, manages and maintains a number of communityfacilities, and provides and facilitates recreation pro-grammes in communities and at City facilities.

Community facilities include the following:• 180 community centres (including halls, recreation

centres, multi-purpose centres, civic centres, youthand family centres), used by a cross section of insti-tutions, ranging from non-governmental organisa-tions (NGOs) to ratepayer associations, youth groups,religious groups and sport and recreation clubs

• 187 sports facilities (consisting of indoor facilities,outdoor facilities and stadia)

• Outdoor sports facilities which include 524 individualformal sports fields

• 37 swimming pools• 28 beaches• 14 resortsA comprehensive set of uniform maintenance standardshas been implemented for these facilities. This is a sig-nificant step in making a commitment to our communi-ties on what they can expect when they visit or usethese facilities.

The City has institutionalised the relationship withusers through the Municipal Facility Management Com-mittees (MFMCs) to assist the City with the manage-ment of facilities. Where MFMCs are fully operational,the associated sports fields tend to be used accordingto their threshold norms, and the standards are main-tained on a sustainable basis.

The following approaches are being followed tomaintain and increase service standards:• Investigate alternate means to support the recover-

ing of facilities and services, e.g. exploring externalfunding possibilities through naming and advertisingrights, sponsorships, grant funding and partnerships

• Establish partnerships with community-based stake-holders, which will lead to the sharing of responsibil-ities with regard to the maintenance, managementand security of facilities

• Engage with commercial partners and donors for thedevelopment of community facilities and amenities,making sure the ongoing services are realisable

PLA

NN

ING

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

DIR

ECTO

RATE

SG

LOSS

ARY

KEY COMMUNITY SERVICES PROJECTSName of project Department and purpose

City Parks

Upgrades Metro South-East CemeteryVaalfontein CemeteryWallacedene CemeteryAthlone/Nantes ParkJack Muller ParkMaitland Cemetery

Library and Information Services (LIS)

Key projects Kuyasa Library (externally funded)Planning, design & commencing construction (more information available from Director: LIS)As LIS is an unfunded mandate, no capital budget is provided and, therefore, no major infrastructure projects canbe planned for/undertaken until funding is provided for this purpose.

Sports, Recreation & Amenities

Key projects Seawinds – sports complex phase 3 R3 406 315Imizamo Yethu – develop sports complex R5 971 950Witsands, Atlantis – construct sports complex R4 431 038Wallacedene – construct sports complex R3 900 000Masibambane Hall – additions and alterations R3 600 000

KEY CONTACTSExecutive Director Lokiwe Mtwazi

Tel021 400 1210

Fax021 400 1269

[email protected]

Executive Assistant:Funeka Xamlashe

Tel021 400 1335

Page 35: City of Cape Town   Council Overview

34 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

Page 36: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 35

The City of Cape Town’s Corporate ServicesDirectorate is a multi-disciplinary partnerproviding value-adding strategies, processes,policies, systems, interventions, knowledgeand expertise to all other directorates.

Its services encompass strategic human resources,information systems and technology, communications,specialised technical services, personnel services, cus-tomer relations and employment equity.

These are achieved by maintaining and improvingservice delivery, and ensuring quality and affordabilitywithin an increasingly constrained global economic cli-mate through:• leading and directing the organisation to new think-

ing, strategies, processes and new approaches inservice delivery and business transformation;

• providing a framework for maximising intellectualcapital within the organisation;

• creating a centre of knowledge and best practice;• aligning and optimising staff and business processes

to satisfy business and community needs;• optimising the City of Cape Town as a world-class

brand;• driving a professional service culture that focuses on

community responsiveness, results and problem solv-ing;

• developing enabling policies that are outcomes-focused;

• delivering high-quality specialist corporate services tothe organisation; and

• achieving economies of scale through providing effi-cient and effective transactional services.

PLA

NN

ING

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

DIR

ECTO

RATE

SG

LOSS

ARY

Corporate ServicesStrategic Human Resources | Information Systems & TechnologyCommunication | Specialised Technical Services | Personnel ServicesCustomer Relations | Employment Equity | Legal Services

KEY FACTSStaff complement

1 726Operating revenue

R27 282 000Operating expenditure

R1 622 353 000Capital expenditure

R208 630 000

Corporate Services provides the wealth of strategies, processes, policies and systems that underpin each directorate.

Page 37: City of Cape Town   Council Overview

36 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

KEY CORPORATE SERVICES POLICIES Name of policy Department and purpose

Strategic Human Resources and Personnel Services

HR policies and proceduresand collective agreements(union agreements)negotiated by the SouthAfrican Local GovernmentBargaining Council(SALGBC).

These include:• conditions of service, benefits and remuneration;• employee code of conduct;• time and attendance management;• education, training and development;• recruitment and selection;• individual performance management;• employee benefits;• discipline, grievance and incapacity management;• employee wellness;• occupational health and safety;• appointments and terminations;• declaration of financial interest, private work and gift register; and• operational policies, including transportation, cell phones, catering and beverages.Human resource policies can be obtained from the City’s intranet under “HR policies”.

Information Systems and Technology

Personal Computers forCouncillors

The policy in terms of which personal computers, related services and IT equipment is issued to councillors.

Electronic CommunicationPolicy

This policy provides the rules for the use of any electronic communications tools within the City of Cape Town.

Legal Services

Policy on the Provision ofLegal Representation forStaff and Councillors

This policy seeks to provide a City employee or councillor with legal representation, subject to terms and condi-tions, where legal proceedings have been instituted against the employee or councillor as the result of any act oromission in the exercise of his or her powers or the performance of his or her duties; or the employee or council-lor has been summoned to attend any inquest or inquiry arising from the exercise of his or her powers or theperformance of his or her duties. Draft submitted to portfolio committee for comment.

Specialised Technical Services

Corporate Transport Policy To regulate the use of Council vehicles in respect of legislation, application, manner, hours, safety, etc. In draftformat and awaiting feedback from the Bargaining Forum.

Security Policy andProcedures

To provide clarity on how security is managed at City-owned buildings and facilities, in order to achieve consis-tent and standardised safety and security services

Office Space Planning andAllocation

To facilitate the provision of optimal workplace allocation and accommodation (including matters relating tobeverages, cleaning, parking and interior decorating) to Council staff

Parking Policy To regularise parking at all Council facilities, and to ensure a transparent and equitable process in the allocationand control of official parking

Communication

Communication Strategy Document providing an overview of the communication discipline, its key business areas and the broad directionin which the discipline is moving. Available from the Director: Communication.

Media Protocol Document to regularise the manner in which staff interact with the print, radio and television media; providingguidance to line departments on how to appoint specialist spokespersons. Available from the Manager: Media.

Brand Architecture Policy concerning the design and utilisation of the City’s identification logo, its key features and method of appli-cation. Available from the Head: Admin & Production.

Customer Relations

Citizen RelationshipManagement Strategy

The Citizen Relationship Management Strategy describes the customer relations activities at political, corporateand function-specific level. Available from the Manager: Customer Relations.

Employment Equity

Staff Women EmpowermentStrategy

The strategy provides a framework to address the gender imbalances that exist within the City, to ensure equi-table representation of women in all occupational categories and levels within the organisation. The document isavailable on request from the Employment Equity Department.

Staff Disability Strategy The strategy is aimed at creating an enabling environment for persons with disabilities, to secure and retainemployment with the City. The strategy is available on the City’s Intranet under “HR policies, Employment Equity”.

Anti-Discrimination in theWorkplace Policy

This policy aims to give effect to the Constitution, the Employment Equity Act, and the Promotion of Equality andPrevention of Unfair Discrimination Act, and ensure that no unfair discrimination takes place in the City as aworkplace. The document is available on request from the Employment Equity Department.

Page 38: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 37

Core functionsCorporate Services comprises the following departments:

Strategic Human Resources (HR)HR’s function is to maximise the human capital poten-tial of the City by providing corporate direction in termsof human resources policies, strategies and alignment ofpeople with business needs, including talent manage-ment, business improvement, quality management,change management, collective bargaining and provid-ing consultative services to line management.

Information Systems & Technology (IS&T)IS&T’s function is to provide and support the computerinfrastructure, networks and systems that enable theCity’s numerous information technology (IT) systems.Without these systems – financial, logistic, HR, projectsetc. – and networks – e-mail, telephones etc. – the Citywould not be able to provide any municipal services norcommunicate with its residents.

Legal ServicesThe Department’s function is to provide an effective andefficient legal support service to Council in order toenable it to deliver on its constitutional mandate withinthe relevant legal framework, namely to manage andlimit the legal risks of the City of Cape Town.

Specialised Technical Services (STS)The STS Department’s function is to maintain and opti-mise the potential of the City’s buildings, corporatevehicle fleet and radio communications, in order toenhance service delivery.

Personnel ServicesThe Department’s function is to optimise humanresources management by empowering line manage-ment through the provision of advisory services, opera-tional systems and processes in terms of personneladministration, training and development, payroll serv-ices, occupational health and safety, and care for thewell-being of employees.

CommunicationThe Department’s function is to ensure a credible, pro-fessional and cost-effective information flow betweenthe City, its staff, residents, news media and all otherstakeholders pertaining to service delivery and otherCity activities, information and initiatives.

Customer RelationsThe Department’s function is to provide a customer rela-tions service to the City’s customers in order to addresstheir requirements in terms of access to municipal serv-ice delivery, thereby creating a positive image of theCity.

Employment EquityThe Department’s function is to provide corporate direc-tion, ensuring compliance with employment equity leg-islation, and the achievement of a diverse and represen-tative workplace.

Key initiativesThe Directorate’s key initiatives include the following: • The Human Resources (HR) Strategy is aimed at deliv-

ering the right people, with the right skills, in theright place at the right time and cost.

• E-HR is aimed at providing staff and managementwith cutting-edge computer-based systems andtools, increasing efficiency, saving costs and improv-ing morale. E-HR is based on the single largest roll-out of SAP functionality in local government in theworld.

• The implementation of a world-class municipalbroadband network (fibre optic network) for the Cityis under way and will give Cape Town a significanteconomic advantage.

• The implementation of cross-cutting businessimprovement projects will provide a combined returnon investment of over R100 million per annum andimprove service delivery and customer satisfaction.

• The ongoing roll-out of improvements in occupationalhealth and safety management ensures that employ-ees, councillors and the communities coming into

PLA

NN

ING

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

DIR

ECTO

RATE

SG

LOSS

ARY

Page 39: City of Cape Town   Council Overview

38 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

direct contact with City facilities and services canexpect high safety standards to be maintained at alltimes.

• A Major Events Strategy aims to support the City’sambitions to become a desirable international eventscapital.

• The Customer Relations Strategy will guide the Direc-torate’s daily interactions with City roleplayers andcustomers, and includes the simplification and expan-sion of communication channels and networks.

• A focused intervention to expand employment oppor-tunities to women and people with disabilities recog-nises that these vulnerable citizens currently struggleto access available opportunities.

• Bridging the digital divide empowers disadvantagedcommunities through free access to information andcommunications technologies.

• An Education, Training and Development Strategy insupport of local economic skills development initia-tives includes in-service training, internships, artisansand learnerships, and bursaries.

• Providing citizens with consistent and transparentcommunication offers them access to informationand knowledge of their legal rights.

• A strategic review of the corporate fleet and facilitiesmanagement aims to align with best practice andtechnology in responding to environmental and ener-gy reduction challenges.

Key challenges• Building and sustaining a world-class city• Managing the planned creation of a single public

service• Re-engineering the City fleet and facilities in the con-

text of the economic and energy crises• Appropriate talent management strategies to address

the effects of a reducing pool of graduates and skills• Enhancing economic development through the ongo-

ing expansion of the City’s fibre-optic broadbandproject

• Delivering more with less in a climate of rapid urban-isation and rising unemployment through appropriatebusiness improvement and staffing strategies

• Creating appropriate labour interventions and legalmechanisms for managing and responding to increas-ingly violent and litigious reactions from communitiesand employees facing the consequences of the globaleconomic and energy crises.

KEY CORPORATE SERVICES PROCESSES AND POLICIES REQUIRING COUNCIL INPUTName of policy Purpose or requirement

Section 78 process(Specialised Electronic andRadio Services)

The City operates a radio trunking communications network that serves the City’s emergency and municipal serv-ices, neighbouring municipalities, provincial government and national government organisations, with more than10 000 radios. Due to major upgrades, the City undertook a Section 78(1) investigation, according to the Munici-pal Systems Act (MSA), into the city’s internal capacity to continue delivering this service. A report was submittedto council in November 2010 recommending that, before a decision is taken, an investigation and assessment ofexternal service delivery options be undertaken according to section 78(3) of the MSA. This report will be submit-ted to Council in June 2011.

Customer Service Charter The Charter is a high level document containing the City’s commitment to its customers in terms of customerinteractions. It outlines the commitment to working in partnership with customers to deliver excellent service.This includes responsibilities to customers regarding customer interactions as well as customer expectations. Italso explains how complaints will be dealt with. Consideration and approval.

Electronic CommunicationPolicy

The City has provided councillors and many staff members with electronic communication tools to enhance theirproductivity and enable them to communicate with various stakeholders. If used inappropriately these toolsincrease the City’s exposure to various risks, lead to unproductive behaviour and the misuse of its resourcesthrough non-work related web browsing, misuse of e-mail systems, and onward transmission of viruses andunacceptable content. This can increase the vulnerability of the City’s systems to malicious attacks by externalparties. This policy provides the rules for the use of electronic communications tools within the City.

Legal Tariffs Approval

Key projects Significant capital projects to be undertaken in the medium term include:• Facilities Management structural rehabilitation project• Retrofitting Civic Centre lighting• ‘Dark fibre’ broadband projectThe following additional key programmes and projects will be undertaken:• Staff loyalty and productivity • Improving efficiency and effectiveness of core business processes• Unified citizen interaction channels• Mobile services activation – transactional service for mobile phones• Absenteeism and time management• Operationalisation of the CANTO digital asset management system• Major event: Festive Season switch-on in late November 2011

KEY CONTACTSExecutive Director

David BerettiTel

021 400 5050Fax

021 400 1213E-mail

[email protected]

Executive Assistant:Allizon Sangster

Tel021 400 1231

Page 40: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 39

The Economic, Social Development andTourism Directorate promotes economicdevelopment and opportunities – from abusiness to a community level; responsibleand sustainable tourism strategies, and

social development to promote empowerment withindisadvantaged communities. It also manages the City’simmovable property to optimise usage and value.

The Directorate takes its lead from Section 152 ofthe Constitution, namely to promote social and eco-nomic development, create a safe and healthy environ-ment, and encourage involvement of communities and

community organisations in matters of local govern-ment programmes.

The departments driving this objective are those ofEconomic and Human Development, Tourism, SocialDevelopment and Property Management. In brief, eachdepartment’s purpose is as follows.

Economic and Human DevelopmentThe Economic and Human Development Departmentpromotes economic development practices throughimplementing the City’s Economic Development Strate-gy (EDS). The City’s EDS aims to organise all available

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

PLA

NN

ING

GLO

SSA

RY

Economic, Social Development & TourismEconomic and Human Development | Social DevelopmentProperty Management | Tourism

KEY FACTSStaff complement

324Operating revenue

R174 947 000Operating expenditure

R298 458 000Capital expenditure

R167 051 000

The Directorate promotes social and economic development and encourage community involvement in local government programmes.

DIR

ECTO

RATE

S

Page 41: City of Cape Town   Council Overview

40 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

KEY SOCIAL DEVELOPMENT PROCESSES AND POLICIES REQUIRING COUNCIL INPUT Name of policy Department and purpose or action required

Social Development

ECD Policy Consideration and approval of the policy described above

Social Development Strategy Consideration and input of the strategy described above

Youth Policy Consideration and approval of the policy described above

Disability Policy Consideration and approval of the policy described above

Tourism

New Tourism DevelopmentFramework (TDF)

The current TDF was approved in 2004. A process has been initiated for the development of a TDF for the period2011- 2016/17.

Economic Development

Comment on EDS Written and verbal comments regarding the policy described above

Comment on the GlobalCompetitiveness Study

Written and verbal comments regarding the project described above

Property Management

Revised AdvertisingMethodology for CertainCategories of PropertyTransactions

This methodology comprises the placement of an annual advertisement communicating the intention of Councilto grant or renew the rights to use, manage and control certain categories of assets under specific circumstances,and calling for comments and/or objections. The methodology, which replaces the individual ‘advert-per-transac-tion’ system, is being implemented, and any objections arising from such advertisement will be referred to Coun-cil for consideration and decision.

Property ManagementBusiness ImprovementProject

Alignment with international best practice and new property management governance strategy requires theestablishment of an Independent Advisory Board, a Property Portfolio Performance Committee, as well as the cre-ation of asset portfolios and the development of portfolio-specific strategies.

KEY ECONOMIC, SOCIAL DEVELOPMENT AND TOURISM POLICIES Name of policy Department and purpose

Social Development

Early ChildhoodDevelopment (ECD) Policy

Provides a guiding framework for the City’s ECD strategy and supporting programmes, including guidelines inrespect of the planning and health and safety requirements for safeguarding the interests of children throughECD. The policy has been advertised in the press as part of the public participation process.

Draft Social DevelopmentStrategy Framework

Provides guidance on meeting the developmental needs of residents by focusing on the provision of the basicfoundation and building blocks that will ultimately lead to a sustainable social infrastructure

Youth Policy The Youth Policy provides guidance on how the City will create a supportive environment that is in tune with theneeds of young men and women, and is aimed at providing a holistic approach to youth development

Disability Policy Provides guidance on how the City will create a supportive environment for addressing the needs of disabledpeople. It is aimed at clarifying the role of the City as a local authority in addressing the interests of the disabled.

Tourism

Tourism DevelopmentFramework (TDF) for theCity of Cape Town

A plan for the development of the tourism sector in Cape Town, including public and private sectors and commu-nities. The purpose of the TDF is to guide the development of tourism products and experiences, and to proposeactions ensuring that tourism generates economic, social and environmental benefits. Approved in 2004.

Responsible Tourism (RT)Policy and Action Plan

The Responsible Tourism Framework and Action Plan/Programme has been developed to ensure that Cape Towndevelops as a ‘responsible tourism’ destination, focusing on the triple bottom line, comprising social, economicand environmental aspects. Approved in 2009.

Economic Development

Global CompetitivenessProject

The project investigates supply-side conditions and locational attributes that either hinder or improve the globalcompetitiveness of Cape Town’s economy.

Economic DevelopmentStrategy (EDS)

The project is about developing a 2020 economic vision for Cape Town, and creating strategies for Cape Town toachieve its 2010 economic vision.

Cost of Doing Business The purpose of this study is to create a plan to reform regulatory practices (i.e. procedures and processes) thatincrease the cost of establishing/operating a business in Cape Town, and also reduce a business’ ability torespond quickly to changes in its environment.

Property Management

Bylaw Relating toImmovable Property

Enabling legislation for the management of immovable property, including certain matters not provided for in thegoverning national legislation (MFMA and MATR). Approved in 2010.

Policy on the Managementof Certain of the City'sImmovable Property

A guiding framework for the management of immovable property assets in a manner that is compliant with leg-islation, that is aligned with international best practice in the management of public property assets, and thatsupports the strategic objectives of the City. Approved in 2010.

Page 42: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 41

resources towards agreed goals, and to ensure align-ment with the plans of internal and external economicdevelopment agents and partners. The Department’sstrategic objectives are to:• facilitate the creation of an efficient, effective and

equitable spatial economy, where the economy’swealth, assets and economic opportunities are dis-persed throughout the city;

• channel the development of Cape Town’s productiveassets (capital, land, natural resources, workforce,patents, intellectual capital and creative capital) tocreate a competitive economy that attracts invest-ment and increases its exports; and

• promote a model of economic development that pro-vides all communities with opportunities to sharethe benefits associated with economic growth (i.e.jobs and investment) and technological innovation(i.e. access to technologies that allow the poor toaccess affordable amenities and services).

TourismThe Tourism Department strives to develop Cape Townas one of the world’s sought-after destinations. As thecustodians of the City’s local tourism constitutionalmandate, the Department provides leadership in pro-moting Cape Town as a top-quality destination throughresponsible development and innovative strategic mar-keting in partnership with industry.

Four goals have been identified: sector leadership;destination and product development; sector support,and corporate excellence. These goals are driven via thefocus areas of responsible tourism for destination sus-

tainability, tourism infrastructure, and tourism growthwith special attention to the domestic market.

Social DevelopmentThe Social Development Department creates opportuni-ties for communities to meet their developmentalneeds in order for them to become resilient and self-reliant, as well as able to participate in the local andglobal economy. The Department is geared towards cre-ating opportunities through:• the promotion of early childhood development (ECD)

and the provision of ECD centres of excellence;• facilitating the provision of social infrastructure; • the promotion of arts, culture and heritage;• the promotion of social entrepreneurship; • the facilitation of corporate social investment (CSI)

contributions that enable developmental pro-grammes; and

• addressing social development needs through target-ed programmes focusing on early childhood develop-ment; street people; youth development; substanceabuse prevention in support of the City’s SubstanceAbuse Programme; disability; gender equality, andpoverty alleviation.

Property ManagementThe Property Management Department’s functionsintersect with the objectives of all City departmentsthrough the deployment of existing property assets andthe acquisition of property and rights in property, tosupport the programmes of infrastructure-led economicdevelopment.

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

PLA

NN

ING

GLO

SSA

RY

KEY CONTACTSActing Executive Director

Ruby GelderbloemTel

021 400 2589Fax

021 400 4711E-mail

[email protected]

Executive AssistantCecile Swart

Tel021 400 2589

DIR

ECTO

RATE

S

Page 43: City of Cape Town   Council Overview

42 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

The purpose of Property Management is to optimisethe management of the City’s immovable property(land and buildings). To achieve this objective, theDepartment has shifted its business culture from reac-tive property administration to one of proactive assetperformance management.

An extensive business improvement process hasbeen executed, which has resulted in a revised strategy

and business plan, revised organisational structure,documented business processes, standard operatingprocedures, standard documents and outcomes-basedresource loading.

These are further supported by quality managementprinciples and systems as well as the management ofinteraction with dependencies and stakeholders bymeans of service-level agreements.

KEY ECONOMIC, SOCIAL DEVELOPMENT AND TOURISM PROJECTSName of project Department and purpose

Social Development

ECD constructionprogramme

Construction of ECD centres of excellence in Leonsdale and Delft

Tourism

Lookout Hill, Khayelitsha Lookout Hill is a tourism facility, located strategically at the junction between Khayelitsha and Mitchells Plain.The facility was built around 2003, and has an exhibition centre, amphitheatre, restaurant, arts and craft hives,curio shops and a meeting room. The facility has a boardwalk that stretches over 164 steps to a platform on themount of a sand dune. A plan is being implemented to improve safety and security, the boardwalk, landscapingand parking, etc.

Two Oceans Craft andCultural Centre (TOCCC),Masiphumelele)

The TOCCC is a cultural tourism centre located at the entrance of Masiphumelele. The centre is a platform for thecreation, marketing and retail of local craft and cultural products. It is a key tourism attraction for Masiphumelele,housing a small coffee shop, craft huts and amphitheatre. The TOCCC is flanked by several other economic devel-opment infrastructures – such as a taxi rank, proposed retail land, etc. – which are planned to be part of an eco-nomic development corridor for the area.

Economic Development

Facilities improvement Structural work to comply with occupational health and safety legislation and the installation of prepaid electric-ity metering at: Bloekombos phases 3/4, Gugulethu Gateway, Gugulethu meat market, Schaapkraal/Oasis hive,Heideveld Station, Nyanga job centre, Khayelitsha training centre, Ravensmead business hive,Wesbank Uluntu plaza, and Uitsig entrepreneurial centre

Nomzamo Business Centre Structural work to comply with occupational health and safety legislation

Masincedane SkillsDevelopment Centre

Construction of four additional training rooms

Property Management

Business improvementproject

Alignment of Department structure and functions with international best practice based on property asset lifecycle principles. This includes development of business processes, standard operating procedures, standard docu-ments, service-level agreements, and the implementation of a quality management system.

Redevelopment of BellvilleVelodrome

The R2,5 billion mixed-use development by Devmet Property Developments (Pty) Ltd, being facilitated by theProperty Management Department, is one of the largest and most expensive property developments to be under-taken within the City of Cape Town.

Cape Town InternationalConvention Centre

Property Management is playing a pivotal role in the planning for, and execution of, the R500 million expansionof the Cape Town International Convention Centre (CTICC) approved by Council in March 2011.

Property and rightsacquisitions in support ofthe IRT project

Numerous properties and rights in properties are in the process of being acquired from landowners to providefor the integrated rapid transit bus routes and depots and for bulk infrastructure developments and expansionsthroughout the city

Security of tenure – churchsites

Process to legitimise church organisations’ occupation of sites in various areas, including Khayelitsha and formerIkapa areas, in a manner that is compliant with governing legislation; preparation of sites for sale by competitiveprocess, and completion of transfer of sites already sold in terms of Council approval

Revised advertisingmethods for low-impactproperty transactions

Advertising costs are expensive, and resistance is being experienced with renewal of leases, particularly low-impact and low-value transactions. Revised advertising methodology has been developed and will be implement-ed from 1 July 2011 to test for process objections.

Consumer Protection Act –compliance and readiness

All contracts, business processes, standard operating procedures and standard documents are being assessed forcompliance, and the necessary amendments are being made.

Property releaseprogramme

Council-owned properties not required for municipal services, and with a total value of more than R300 million,will be put to the market for disposal to support and facilitate economic and social development.

Establishment ofcomprehensive immovableproperty assets register

Implementation of Government Immovable Asset Management Act (GIAMA) at local government level is immi-nent. The City's state of readiness is being assessed and a project being scoped to develop a roadmap towardscompliance.

Page 44: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 43

The Finance Directorate is responsible for thecollection, management, investment andexpenditure of the City’s monies, in accor-dance with national legislation and policy,generally accepted accounting principles,

and international best practice.The Directorate’s key functions are as follows:

BudgetThe budget is a very detailed list of all planned expens-es and revenues. It is an organisational plan stated inmonetary terms, and describes the strategic focus ofthe City in financial terms, in a manner that is afford-able, credible, viable and sustainable.

The budget is divided into an operating budget anda capital budget. The operating budget covers the costsof running the City, such as salaries and wages, andpayment for goods and services.

The bulk of the capital budget is spent on core infra-structural services for water, electricity, sanitation, solidwaste, transport, roads and major projects.

The Budget Department prepares a draft budget,which is published for comment and adjustment. Thedraft budget must be approved by Council before themunicipal financial year begins on 1 July.

The budget also provides a means to measure theactual financial operation of the City against what wasanticipated or forecast.

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

PLA

NN

ING

GLO

SSA

RY

FinanceBudget | Expenditure | Inter-services Liaison | Integrated Risk ManagementHousing Finance and Leases | Revenue | Shareholding ManagementSupply Chain Management | Treasury | Valuations

KEY FACTSStaff complement

1 507Operating revenue

R390 011 000Operating expenditure

R1 567 385 000Capital expenditure

R5 062 000

The infrastructure and services the City provides depend on professional financial management.D

IREC

TORA

TES

Page 45: City of Cape Town   Council Overview

44 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

KEY FINANCE POLICIES Name of policy Type and purpose

Bylaws

Credit Control and DebtCollection Bylaw

To give effect to the municipality's credit control and debt collection policy, its implementation and enforcementin terms of Section 156(2) of the Constitution, and Sections 96 and 98 of the Municipal Systems Act, 2000; toprovide for the collection of all monies due and payable to the municipality; and to provide for matters incidentalthereto

Special Rating Areas Bylaw To give effect to Council's policy on special rating areas; to provide for the establishment of special rating areas;to provide for additional rates, and to provide for matters incidental thereto

Tariff Bylaw To give effect to the policy on the levying of fees for a municipal service provided by the municipality or by wayof service delivery agreements

Policies and procedures

Credit Control and DebtCollection Policy

The credit control policies deal with financial management, including housing debt. Policies cover general princi-ples, employer deductions, councillor and municipal staff arrears, credit control, disputes, irrecoverable debt, spe-cial rating areas, indigent relief, debt management actions, property management, collection processes, and cred-it and refunds.

Housing Debt ManagementPolicy

Housing Indigent Policy

Special Rating Areas Policy Sets out Council's position on special rating areas and the factors that will influence Council's decision whetheror not to determine a particular special rating area.

Tariff Policy Policy on the levying of fees for a municipal service provided by the municipality or by way of service deliveryagreements that complies with the provisions of the Municipal Systems Act, the Municipal Finance ManagementAct and any other applicable legislation.

Policy for the Allocation ofGrants-in-Aid

Sets out Council's position on the allocation of grants-in-aid

Virement Policy Sets out Council’s position on the regulated transfer or re-allocation of money from one budget vote or accountto another (virement), as defined in the Municipal Finance Management Act (MFMA), Act 56 of 2003.

Integrated RiskManagement Policy

Financial policies

Accounting Policy

These outline principles and processes within the City. Various acts and regulations offer guidelines to manageprocesses. All approved policies are available in hard copy, on CityWEB, and on the City’s website.

Asset Control Policy andProcedures

Cash Management Policyand Procedures

Accounts Payable Policyand Procedures

Management of ForeignCurrency Exchange Risk

Contract Sureties: ApprovedPolicies

General Insurance FundPolicy

Group Life InsuranceScheme Policy

Voluntary Group LifeInsurance Scheme Policy

KEY FINANCE PROCESSES AND POLICIES REQUIRING COUNCIL INPUT Name of process Action required

Budget process Approval to be granted

KEY FINANCE PROJECTSProvided for in 2011/12budget and Medium-termRevenue and ExpenditureFramework (MTREF)

This detailed information is available on CityWeb and on CD.

Page 46: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 45

The Budget Department’s core functions are:• the formulation of budget strategy;• ensuring the integrity of the budgetary data;• corporate monitoring, controlling and reporting; and• the facilitation of adjustments, within the applicable

legislative and technical framework, to the capitaland operating budgets.

ExpenditureThe Expenditure Department’s functions include ensur-ing accurate and timeous payments to the City’s suppli-ers, councillors, officials and third parties; managingthe payroll, and providing support services to theFinance Directorate.

Inter-services LiaisonThe Inter-services Liaison Department assists other Citydepartments experiencing difficulties with processes,tariffs or financial viability, and provides financial con-trol and administrative support for grants-in-aid and forthe city improvement districts (special rating areas).

The Department also manages the development ofthe rates policy, the setting of tariffs for municipal serv-ices, and the impact these charges have on residents.

Furthermore, the Department models the totalmunicipal account (TMA) distribution to ensure a fairdistribution of all billed municipal charges, and toensure that these charges can be collected.

Integrated Risk ManagementThe Integrated Risk Management Department isresponsible for assessing and managing governanceissues and risks that could affect the City.

The Department manages risk through:• understanding the strategic objectives of the organi-

sation as well as the internal and external environ-ment in which it operates;

• the assessment of risks through risk identification,analysis and evaluation;

• the treatment of risks to minimise or prevent a recur-rence of an event; and

• the monitoring of risks. The Department won a prestigious Institute of Risk

Management (South Africa) Public Sector Award in2010, and received a rating of 3,9 – one of the highestratings in the country – when the National Treasuryconducted its annual risk management maturity surveyin September 2010.

Housing Finance and LeasesThe Housing Finance and Leases Department managesa comprehensive financial service that covers allaspects of the City’s housing developments. Its func-tions include managing housing subsidies and develop-ment grants from Province and National Treasury, infor-mal settlement upgrades, housing debtor managementand operational funding programmes.

The Department’s functions are aligned with nationalhousing and financial legislation and national housingand other national infrastructure funding programmes.

The Department also operates the various computersystems and financial procedures associated with theCity’s Property Management debtor portfolio.

RevenueThe Revenue Department is responsible for creatingand sustaining a solvent and prosperous City by:• billing and collecting funds due to the City, including

water, electricity, rates and any other tariffs;• ensuring that accurate, transparent accounting

Cape Town InternationalConvention Centre(CTICC), in which the Cityof Cape Town is thelargest single shareholder,generated R137,9 millionof revenue during thepast financial year.This represents a 13%increase on the R119,9million of the previousyear. During the yearunder review, the CTICChosted 553 events, whichincluded 39 internationalevents.

PLA

NN

ING

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

DIR

ECTO

RATE

SG

LOSS

ARY

Page 47: City of Cape Town   Council Overview

46 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

processes and policies which are compliant with rel-evant legislation, are in place;

• managing and controlling the flow of funds receivedby the City;

• providing a financial reporting function to the City,other stakeholders and residents;

• collecting all outstanding revenue in terms of theCity’s debt management and indigent policies; and

• aligning business processes to meet the City’s objec-tives.

The Department has four main areas of work:• Debt management, including disconnections, legal

processes and arrears• Debtors and cash, including payment arrangements

and rates clearances, prepaid electricity and theCity’s pension payment files

• Special services, such as motor vehicle registrations• Technical services, such as billing and database man-

agement

Shareholding ManagementThe Shareholding Management Department managesthe legislated relationship between the City and itsmunicipal entities and strategic partners, ensuring goodgovernance and protecting the integrity of the City’sshareholding investments.

Supply Chain Management (SCM)The SCM Department manages the supply and acquisi-tion of goods and services, and the provision of stores.This includes equipment, services, construction workand the disposal of goods no longer needed.

SCM is also responsible for administering tenderprocesses and selecting contractors to assist in the pro-vision of municipal services.

In addition, SCM is responsible for ensuring a sound,sustainable and accountable supply chain that pro-motes local economic development and encouragessmall businesses and joint venture partnerships. This

procurement system strives to be fair, equitable, trans-parent, competitive and cost-effective.

TreasuryThe Treasury Department is responsible for managingthe City’s accounting function and cash flow, makinginvestments, raising external finance through bondissues (or servicing existing loans), conducting its bank-ing transactions, and safeguarding its assets and liabili-ties.

Treasury also facilitates the City’s annual credit rat-ing, and manages its insurance portfolio (as the Cityself-insures). It ensures compliance with relevant legis-lation by reporting timeously and safeguarding assetsin order to achieve the strategic and operational objec-tives of the Department in an efficient, effective andeconomic manner.

ValuationsThe Valuations Department attaches a market value tomore than 780 000 residential, commercial, agriculturaland public infrastructure properties for rating purposes.

A general property valuation is conducted at leastonce every four years to ensure that the rates chargedon properties are fair and reflect current values. This isa requirement in terms of the Local Government:Municipal Property Rates Act of 2004.

The City uses a mass appraisal methodology that isin line with international valuation practices. Thismethod is a systematic process of valuing many proper-ties at a given date, using geo-spatial data and statisti-cal procedures based on property sales and marketconditions around the date of valuation.

The last general valuation was held in 2009, and thegeneral valuation roll was certified by the City Manageron 29 January 2010. Two supplementary valuationshave since been held. The actual property taxes thatproperty owners pay are based on the property value,and this can be a contentious process.

KEY CONTACTSExecutive Director:

(Chief Financial Officer) Mike Richardson

Tel021 400 3265

Fax021 400 5660

[email protected]

Executive AssistantRushda Cummings

Tel021 400 5021

Property rates are animportant source of

income for the City, andthe Valuations

Department conducts ageneral property

valuation at least onceevery four years, to

ensure that the ratescharged on properties are

fair and reflect currentvalues.

Page 48: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 47

City Health’s mission is to make Cape Towna healthier city by continuing to strive toensure adequate and equitably distributedresources, which deliver improved-quality,comprehensive, cost-effective, primary

health care services.This aim will be achieved through a district health

system with a committed workforce supported bystrong, competent shared leadership, who will developstrong teams in collaboration with, and with commit-ment from, the community and other partners.

The City is committed to working with all spheres ofgovernment to meet the national, provincial and Citytargets, so that there is a coordinated and integrateddistrict health service for the citizens of Cape Town.

Environmental healthThe core business of City Health is environmentalhealth services, or municipal health services. Municipalhealth services are defined in the National Health Act(Act 61 of 2003) as including:• water quality monitoring;• food control;• waste management;• health surveillance of premises;• surveillance and prevention of communicable dis-

eases;• vector (pest) control;• environmental pollution control;• disposal of the dead; and• chemical safety.

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

PLA

NN

ING

GLO

SSA

RY

City HealthEnvironmental Health | Personal Health | Specialised Health

KEY FACTSStaff complement

1 501Operating revenue

R361 225 000Operating expenditure

R697 404 000Capital expenditure

R19 848 000

City Health delivers primary health care, and monitors and strives to reduce environmental health hazards. DIR

ECTO

RATE

S

Page 49: City of Cape Town   Council Overview

48 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

Air pollution is a key factor that affects the health ofa city. Air pollution levels are frequently high in ourinformal areas and even inside shacks. The City hasadopted an Air Quality Management Plan, which out-lines the strategies to be used to deal with air pollu-tion. City Health also deals with all aspects of noisepollution.

Personal healthIn addition, the City also delivers, in partnership withProvincial Government, the personal primary healthcare component – clinic services – via an infrastructureof 82 clinics, 24 satellite clinics, four community healthcentres (CHCs) and four mobile clinics.

Services include women and child health services(preventive and promotive services, i.e. family planningand immunising and treating sick children under 13

years); HIV/Aids/STI and TB control, and substanceabuse. These clinic services are delivered in partnershipwith the Provincial Health Department’s Metro DistrictHealth Services (PGWC: MDHS) who run 47 CHCs and24-hour emergency services at primary level along withsix district hospitals.

City Health is faced with an increasing need forhealth services, as shown by the burden of disease(BOD) and customer satisfaction survey, but the avail-able resources have not grown proportionally. Theresources relate to the following:• Staffing: Extra staff are needed for those areas with

high traffic to reduce long waiting times.• Security: Certain areas require extra security for staff

and patients.• Funding: Adequate funding is needed for pharmaceu-

ticals and medical tests.

KEY HEALTH POLICIES Name of policy Type and purpose

Environmental HealthBylaw

Bylaw regulating environmental health in the city of Cape Town. Approved in June 2003

Air Quality ManagementBylaw

Bylaw regulating air quality management in the city of Cape Town. Approved in July 2010

Keeping of Animals andPoultry Policy

Policy regulating the keeping of animals and poultry

District Health Plan This joint plan between the City and Province is a statutory attachment to the Integrated Development Plan (IDP)

City Health HIV/Aids/TBPlan

To work together with the Provincial Health Department to mainstream a multi-sectoral response that mobilisesall City sectors in a developmental intervention to fight HIV/Aids and TB, thereby reducing the number of newinfections. Statutory attachment to the IDP.

Air Quality ManagementPlan

To reduce the adverse health effects of poor air quality on the citizens of Cape Town, especially during ‘brownhaze’ episodes – and thus to be the city with the cleanest air in Africa. Statutory attachment to the IDP.

KEY HEALTH PROCESSES AND POLICIES REQUIRING COUNCIL INPUT Animal Welfare Policy A task team is being set up to drive the development of this policy.

Alcohol and Other DrugHarm Minimisation andMitigation Strategy, 2011-2014

The City of Cape Town recognises that the harmful use of alcohol and other drugs has consequences for the well-being of users, their families and the broader society. This document details the City’s strategic plan to minimiseand mitigate the harm of alcohol and other drug (AOD) use (including tobacco usage). Version 13 April 2011.

KEY HEALTH PROJECTSEerste River Clinic New facility

Get Tested campaign HIV counselling and testing

Multi-sectoral action teams Funding for projects, one in each health subdistrict, linked to HIV, using Global Fund money

Matrix outpatienttreatment centres

For the treatment of substance and alcohol abuse

Handwashing campaign Health and hygiene

KEY CONTACTSExecutive Director

Dr Ivan BromfieldTel

021 400 2100Fax

021 421 4894E-mail

[email protected]

Executive Assistant:Linda Bosman

Tel021 400 4285

Page 50: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 49

The Housing Directorate derives its key man-date from the Constitution (Section 26) andthe National Housing Act of 1997. There arealso other pieces of legislation that governits operations.

The Directorate’s main function is to “initiate, co-ordinate, facilitate, promote and enable housing devel-opment” for its poorer communities (households whohave a monthly income of R3 500 and less). This isachieved by addressing issues of land, municipal servic-es and infrastructure, and creating an enabling environ-ment for housing development, within its availableresources.

Funding to deliver on this mandate is accessed inthe form of grants from the National Department of

Human Settlements on an annual basis, which is aug-mented by considerable City funding contributions.

The Directorate utilises the range of national hous-ing programmes established by the National Depart-ment of Human Settlements. Each of these programmessets out policy, application and implementation proce-dures for effective delivery of a range of housingopportunities.

In 2007, the Directorate produced its first five-yearIntegrated Housing Plan, which is a legislative require-ment, and constitutes the principal framework for hous-ing delivery for the short, medium and long term by theCity. This plan is reviewed annually, and also forms thebasis for the insert of the housing chapter in the City’sIntegrated Development Plan (IDP) and annual report.

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

PLA

NN

ING

GLO

SSA

RY

HousingDevelopment Services | Existing SettlementsHousing, Land and Forward Planning | Informal Settlements | New SettlementsStrategy, Support and Co-ordination | Urban Renewal Programme

KEY FACTSStaff complement

747Operating revenue

R427 512 000Operating expenditure

R752 811 000Capital expenditure

R751 000 000

The City has been granted levels 1 and 2 accreditation, which allows it to implement national housing programmes. DIR

ECTO

RATE

S

Page 51: City of Cape Town   Council Overview

50 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

UrbanisationCape Town’s urban population has grown rapidly overthe last 20 years, almost doubling in size, and nowstands at just over 3,7 million. The next few decadeswill see an unprecedented scale of urban growth indeveloping countries such as South Africa.

Urbanisation – the increase in the urban share oftotal population – is inevitable, but it can also be posi-tive. The current concentration of poverty, informalgrowth and social disruption in many of Cape Town’ssuburbs does paint a threatening picture. However, nomajor city has ever achieved significant economicgrowth without urbanisation. Cities concentrate pover-ty, but they also represent the best hope of escaping it.

The City has established an Urbanisation Departmentto address the impact of urbanisation in Cape Townproactively. The Department will focus closely on thedemographics and the longer-term and broader visionof the use of urban space to reduce poverty and pro-mote sustainability. The Department will also facilitate

strategies across a broad spectrum on how to generateemployment; how to reduce the City’s ecological foot-print; how to improve governance, and how to admin-ister increasingly complex urban systems, including afocus on community health, community engagement,education, safety, security and basic service provision.

The vision is that this kind of people-centred devel-opment will knit together the social fabric, and encour-age economic growth for all of Cape Town’s communi-ties, including the poor.

AccreditationThe City has been granted levels 1 and 2 accreditation,which allows it to implement national housing pro-grammes; receive funding directly from National Treas-ury and assume responsibility for beneficiary manage-ment, subsidy budget planning and allocation, and pri-ority programme management and administration.

The next step is for the City to apply for level 3accreditation, and thus become a fully accredited

KEY HOUSING POLICIES Name of policy Type and purpose

Housing Allocation Policy Outlines principles and processes in the identification of beneficiaries and tenants for new housing developmentsand rental stock respectively

Unlawful Occupation Policy Policy for normalising eligible unlawful occupants in the City's rental stock who moved in before 1 March 2006,and for taking legal action against those who moved in after this date

Indigent Policy Policy to provide rental relief to indigent families (those with a household income of less than R3 500 per month) living in the City's rental stock

Credit Control Policy Part of the Credit Control Policy deals with the financial management of the City’s rental and home ownershipstock.

Draft Procedures for theCancellation of Deeds ofSale

Outlines principles and procedures for dealing with beneficiaries who are no longer in occupation of their serv-iced sites in the former black local authorities areas and are no longer traceable, and the consequent sale to thecurrent or approved occupier

KEY HOUSING PROCESSES AND POLICIES REQUIRING COUNCIL INPUT Name of policy Action required

Tenancy ManagementPolicy

Draft policy to be workshopped and submitted for approval

Backyarder Policy Follow-up workshops and approval

Urbanisation FrameworkStrategy

To be approved by Council

Page 52: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 51

municipality with fully assigned powers to deliver on itsconstitutional mandate of providing access to adequatehousing opportunities to, especially, its poorer commu-nities.

The Urban Settlements Development GrantThis grant replaces the previous ‘MIG Cities’ grant andthe ‘service portion’ of the human settlements develop-ment grant (HSDG). The intent of the grant is to aug-ment and support grant allocations from provinces tomunicipalities under the HSDG, and it should also sup-port integration of HSDG projects with mainstream Citydevelopment.

By accessing this grant, the City will be able to: • improve development planning and inter-governmen-

tal co-ordination (all three spheres) of development;• be a proactive developer of infrastructure by mobilis-

ing domestic capital, while at the same time address-ing and redressing the location of development;

• manage its capital expenditure in an integratedmanner, across all services, in good locations andcovering the lifespan of projects;

• be pro-poor and focus on economic growth;• address inequality and poverty alleviation and eradi-

cation; and

• lower the costs incurred by poorer households inaccessing serviced urban land with secure tenure.

The City has compiled a three-year budget, which alsoincorporates its projected equitable share allocation inthe Division of Revenue Act (DORA).

Through its various departments, the Directorate fur-ther delivers on its mandate by:• the identification, acquisition and sale of land for

housing development, and liaising with the HousingDevelopment Agency (HDA) and Province for therelease of well-located state land for housing devel-opment;

• supporting the Provincial Land Claims Commissionerin resolving land restitution claims; and

• facilitating the development of social and ‘gap’(affordable) housing by engaging the City’s privatehousing partners.

The Directorate further plays a key role in the landrestitution process by:• the roll-out of the City’s Informal Settlements Master

Plan by co-ordinating delivery of basic municipalservices to the City’s informal settlements by the var-ious services departments of the City;

• monitoring and reporting on the number of jobopportunities that the City provides in terms of the

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

PLA

NN

ING

GLO

SSA

RY

KEY HOUSING PROJECTS – UNDER CONSTRUCTIONProject No of units Area

Bardale 5 947 Blue Downs

Brown's Farm phase 6 678 Brown's Farm

Drommedaris social housing: Communicare 219 Brooklyn

Hostels redevelopment – Ilinge Labahlali 326 Nyanga

Kewtown infill: People’s Housing Process (PHP) 236 Athlone

Kuyasa Village 1, phase 2 2 399 Khayelitsha

Masiphumelele school site (private) 352 Noordhoek

Mfuleni flood relief PHP consolidation 4 461 Mfuleni

Mitchells Plain infill phase 1 1 345 Mitchells Plain

Morgan’s Village 3: Cape Town Community Housing Company (CTCHC) 341 Mitchells Plain

Nonqubela phase 2 1 250 Khayelitsha

Nyanga upgrade 2 070 Nyanga

Philippi East phase 5 405 Philippi

Philippi Park (PHP) 1 100 Philippi

Sercor Park phase 2 119 Strand

Silvertown, Khayelitsha 1 316 Khayelitsha

Site C: Survey and subdivision: Provincial Housing Development Board (PHDB) 6 265 Khayelitsha

Steenberg social housing: Social Housing Company (SOHCO) 450 Steenberg

Somerset West 10 ha site 390 Somerset West

Temperance Town: Gordon’s Bay 70 Gordon’s Bay

Wallacedene phase 3 1 108 Kraaifontein

Wallacedene phase 4 735 Kraaifontein

Wallacedene phase 5 537 Kraaifontein

Wallacedene phase 6 1 204 Kraaifontein

Wallacedene phase 7 582 Kraaifontein

Wallacedene phase 8 573 Kraaifontein

Wallacedene phase 9 942 Kraaifontein

Westcape (CTCHC) 341 Mitchells Plain

Witsand phase 2 1 835 Atlantis

KEY CONTACTSExecutive Director

Hans SmitTel

021 400 2873Fax

021 400 5351E-mail

[email protected]

Executive AssistantNathalene Jordaan

Tel021 400 5479/1811

DIR

ECTO

RATE

S

Page 53: City of Cape Town   Council Overview

52 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

Expanded Public Works Programme (EPWP) as wellas co-ordinating the application and expenditure ofUrban Settlements Development Grant (USDG) fundsfor the provision of bulk infrastructure linked tohousing developments;

• the in situ upgrade of informal settlements, the day-to-day management of the settlements as well aspreventing planned invasions of vacant City andProvince (by agreement) land identified for futurehousing development;

• delivering new housing opportunities through theapplication and implementation of the range ofnational housing programmes in the City’s varioushousing projects;

• managing the City’s approximately 43 500 rentalunits, 21 000 home ownership units, 11 000 hostelbeds and 11 old-age cottages; and

• the implementation of the two national urbanrenewal pilot programmes for the Western Cape inKhayelitsha and Mitchells Plain.

KEY HOUSING PROJECTS – IN PLANNING STAGES AND PROPOSEDProject No of units Area

In the planning stage

Atlantis Kanonkop (ext.12) phase 1 526 Atlantis

Belhar Pentech infill 347 Belhar

Delft, The Hague 2 395 Delft

Dido Valley 600 Simon’s Town

Driftsands 2 500 Driftsands

Edward Street: Ottery sustainable development 100 Ottery

Eureka-Leonsdale 375 Elsies River

Gugulethu infill (Erf 8448/MauMau) 1 054 Gugulethu/Nyanga

Happy Valley phase 2 1 350 Blackheath

Hazendal infill (Bokmakierie) 166 Athlone

Heideveld Duinefontein Road 699 Heideveld

Imizamo Yethu – phase 3 400 Hout Bay

Kleinvlei Erf 901 65 Blackheath

Macassar 1 500 Macassar

Manenberg infill: The Downs 651 Manenberg

Masiphumelele – phase 4 252 Kommetjie

Morkel's Cottage 400 Rusthof, Strand

Morningstar 150 Durbanville

Ocean View (Mountain View) 547 Ocean View

Ocean View infill 412 Ocean View

Proposed

Darwin Road 2 500 Kraaifontein

Garden Cities housing project 4 000 Durbanville

Green Point phase 3 500 Khayelitsha

Hangberg community residential units (CRUs) 70 Hangberg

Hanover Park 700 Hanover Park

Hostels redevelopment – Nyanga CRU n/a Nyanga

Hostels redevelopment – Gugulethu CRU n/a Gugulethu

Hostels redevelopment – Langa CRU n/a Langa

Kalkfontein phase 3 Upgrading of Informal Settlements Programme (UISP) 1 000 Blue Downs

Kapteinsklip 1 000 Mitchells Plain

Kensington CRU 180 Kensington

Mfuleni ext 1 & 2 700 Mfuleni

Mitchells Plain infill: Westgate 1 000 Mitchells Plain

Nonqubela Makhaza: consolidation 700 Khayelitsha

Nonqubela Site B: consolidation 1 500 Khayelitsha

Nooiensfontein 1 100 Blue Downs

Silvertown consolidation 1 316 Khayelitsha

Sir Lowry’s Pass Village (Pinetown and Balestra) 140 Sir Lowry’s Pass

Swartklip/Denel land 1 500 Khayelitsha

Vlakteplaas 500 Strand

Wallacedene phase 10A 1 617 Kraaifontein

Wallacedene phase 10B 256 Kraaifontein

Page 54: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 53

The safety and security function includes thefunctional areas of metro police, trafficservices, bylaw enforcement, disaster riskmanagement, fire and rescue, and the 107emergency call centre.

Law enforcement departmentsThe City’s three law enforcement departments areMetro Police, Traffic Services and Law Enforcement &Specialised Services. The objectives and priorities ofthese departments are set out in the City’s overarchingLaw Enforcement Plan, which includes the legislativelyrequired Annual Police Plan of the Metro Police.

Metro PoliceThe Metro Police was established in terms of the SouthAfrican Police Services Act. Its mandate is the enforce-ment of traffic laws, enforcement of bylaws, and crimeprevention. Its current operational focus areas includeaddressing disorder in the City, and clamping down ondrug and alcohol-related offences in terms of the City’sAlcohol and Drug Strategy.

To this end, the Substance Abuse Enforcement Unitas well as a highly trained Dog Unit were establishedin recent years, and proved to be valuable contributorsto all law enforcement agencies involved in the com-bating of the illicit drug trade.

PLA

NN

ING

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

DIR

ECTO

RATE

SG

LOSS

ARY

Safety & SecurityMetro Police | Traffic Services | Law Enforcement & Specialised ServicesEmergency Call Centre | Fire & Rescue Services | Disaster Risk Management

KEY FACTSStaff complement

3 728Operating revenue

R232 116 000Operating expenditure

R1 260 296 000Capital expenditure

R36 101 000

The City’s Safety and Security Directorate is better resourced than it had been, thanks to increased budget allocations.

Page 55: City of Cape Town   Council Overview

54 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

Traffic ServicesThis department was established in terms of theNational Road Traffic Act. It has an Operations Sectionwhich undertakes specialised and general activities.

The Licensing and Lipro Section deals with all learnerand driver licence testing as well as card conversionsand renewals. This section also manages the trafficcourt division as well as the public/private partnershipagreement on traffic cameras. Learner’s and driver’slicences as well as card licences are issued on anagency basis for Province in exchange for agency fees.

Law Enforcement and Specialised ServicesThe Law Enforcement and Specialised Services Depart-ment enforces bylaws and regulations. Its powers arederived from the Criminal Procedure Act. It deals with

general bylaw enforcement in residential areas andresorts as well as specialised enforcement through vari-ous units dealing with copper theft, informal trading,displaced people, land invasion, liquor control andproblem buildings.

The Department plays a major role over the festiveseason as well as at other public events. It monitorsand manages land invasion incidents, actively support-ing the Housing Directorate in dealing with land inva-sion actions.

Civilian oversightA Civilian Oversight Committee (CIVOC), as required interms of Section 64 of the South African Police ServicesAct, has been re-introduced during 2006. This commit-tee, which is tasked with ensuring proper civilian over-

KEY SAFETY AND SECURITY POLICIES Name of policy Type and purpose

Policy for the Establishmentof a Reserve LawEnforcement Service

Policy approved by Council on 26 August 2010, and awaiting final approval from Minister of Justice and Consti-tutional Development. Implementation of this policy will allow the City to recruit reserve law enforcement mem-bers, and will bolster the City’s law enforcement capacity. Policy available from Anton Visser, 021 400 2933.

Annual Police Plan for theMetro Police

The Annual Police Plan sets out the objectives and strategies of the Metro Police. The plan is required in terms ofthe South African Police Services Act.

Annual Law EnforcementPlan (Traffic and LawEnforcement)

The Annual Law Enforcement Plan sets out the objectives and strategies of the Traffic and Law Enforcementdepartments, and is distinct from the Annual Police Plan.

Disaster Management Plan The Disaster Management Plan sets out the City’s response to a comprehensive range of scenarios.

KEY SAFETY AND SECURITY PROCESSES AND POLICIES REQUIRING COUNCIL INPUT Name of policy Purpose or action required

Annual Police Plan for theMetro Police

Council is required to approve the Annual Police Plan for the period 1 July 2011 to 31 June 2012.

KEY SAFETY AND SECURITY PROJECTSDisaster Management Additions and alterations to the disaster management centre – R1 000 000

Fire & Rescue Simon’s Town and Fish Hoek fire structure upgrades – R7 500 000Melkbosstrand Fire Station upgrade – R5 074 803

Property improvements Shooting range – R 100 000Various city-wide improvements – R2 400 000

Traffic Services Upgrade Mitchells Plain driver testing centre – R1 224 000Establish the Maitland impound facility – R3 300 000Upgrade Traffic Services centre – R 1 035 000

Metro Police CCTV cameras for Wynberg and Claremont – R1 500 000

Page 56: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 55

sight of the City’s three law enforcement departments,comprises two members of Council and ten membersof civil society.

The CIVOC continues to perform its oversight func-tions with distinction, and is in fact setting the nationalbenchmark as far as the functioning of such bodies isconcerned.

Crime-prevention initiativesThese initiatives include an externally funded memberprogramme, a reservist member system, a neighbour-hood watch assistance project, and a neighbourhoodsafety officer project.

Externally funded member programmeIn December 2007, the City adopted a policy thatwould allow the private sector, the city improvementdistricts and other agencies to sponsor the deploymentof members of the City’s law enforcement departments.At present, a total of 48 members of the Law Enforce-ment and Traffic departments are externally funded.

Reservist member systemReservist members can boost deployment numbers sig-nificantly and the City has adopted a policy that wouldallow residents to become reservist members of theLaw Enforcement Department.

It is expected that full implementation of the policywould be achieved during the new financial year with anumber of residents being recruited and deployed inthe capacity of reservist law enforcement membersacross the city.

Neighbourhood watch assistance projectThe City’s neighbourhood watch assistance project, amayoral initiative, was launched in August 2008. Itsmain objective is strengthening the crime and disorderprevention capacity of local communities.

Neighbourhood safety officer projectThis is a combined initiative with the NetherlandsPolice Agency that entails the implementation of thephilosophy of problem-orientated policing. It providesfor a specific police official to be designated as thesafety co-ordinator and problem solver in a particulararea. Pilot programmes have been launched, andprogress is monitored.

City Emergency ServicesCity Emergency Services comprises the 107 call centre,Fire & Rescue Services and Disaster Risk Management.

Emergency call centre (107)The City has a single emergency number (107) to acall-taking and dispatching centre, which directs callsto appropriate institutions and agencies. The centre haswell-trained quality-controlled operators.

Education and public awareness campaigns are con-ducted at schools and old-age homes as well as frail-care facilities. The call centre plays a key role over thefestive periods and for tourists in the city.

Fire & Rescue ServicesThe City’s Fire & Rescue Services, established in termsof the Fire Brigade Services Act, responds to fires andemergencies as well as medical rescues. It also has pro-grammes to educate and raise awareness around fireand life safety as well as building, structure and eventssafety, with a registered training and education facilityin Epping.

The service has benefitted from significant invest-ment over the last few years due to 2010 funding tobring it on par with the SANS 10090 Code on Commu-nity Protection Against Fire.

Disaster Risk ManagementThe City has a clear mandate in terms of the DisasterManagement Act to prevent and mitigate the effects ofdisasters. To this end, the City’s Disaster Risk Manage-ment Centre (DRMC) aims to identify, prevent andreduce the occurrence of disasters, and soften theimpact of those that cannot be prevented.

The DRMC has a well-established volunteer corps. Itplays a key role in event safety, co-ordination of corpo-rate safety initiatives, festive season planning, winterpreparedness planning as well as taxi unrest, servicedelivery protests and xenophobia issues.

This functional area includes the preparation andexecution of the City’s Disaster Risk Management Plan,as well as the effective coordination and alignment ofprocesses and regular reviews thereof.

The plan is a legislative requirement in terms of theDisaster Management Act, which also requires that theplan forms an integral part of the City’s IntegratedDevelopment Plan (IDP).

PLA

NN

ING

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

DIR

ECTO

RATE

SG

LOSS

ARY

KEY CONTACTSExecutive Director:Richard Bosman

Tel021 400 3355

Fax021 400 5923

[email protected]

Executive AssistantLameez Matthys

Tel021 400 2710

Page 57: City of Cape Town   Council Overview

56 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

Page 58: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 57

The Strategy and Planning Directorate isresponsible for planning, from the approvalof development plans to developing long-term strategies; for ensuring that thoseplans are economically, environmentally

and socially sensible, and for providing the informationand approvals that make the City’s goal of infrastruc-ture-led development feasible and attractive.

The Directorate’s key functions are:• planning for the city’s short and longer-term growth

and development path through the City Develop-ment Strategy (CDS) and spatial development plans;

• providing access to accurate and reliable strategicand spatial information to inform development plan-ning and decision making;

• providing an efficient and effective service to proper-ty owners and developers in terms of the approval

processes for building development and land usemanagement applications;

• enforcement of the City’s building development andland use regulations;

• facilitating a city-wide climate change response thataddresses issues of climate change mitigation, cli-mate adaptation and resilience, and a reduction inCape Town’s carbon footprint; and

• ensuring that the city’s key economic and socialasset – its natural environment – is protected, inte-grated with urban landscapes, and optimised formaximum social and economic benefit.

Planning & Building Development Management The functions, duties and responsibilities of the Plan-ning & Building Development Management (PBDM)Department are set out in Council’s system of delega-

PLA

NN

ING

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

DIR

ECTO

RATE

SG

LOSS

ARY

Strategy & PlanningSpatial Planning and Urban Design | Environmental Resource ManagementStrategic Development Information and Geographic Information Systems (GIS)Planning & Building Development Management | Development Facilitation Unit

KEY FACTSStaff complement

812Operating revenue

R76 729 000Operating expenditure

R389 297 000Capital expenditure

R46 570 000

The city’s growth requires long-term planning and design, and the management of the natural resources that make Cape Town unique.

Page 59: City of Cape Town   Council Overview

58 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

KEY STRATEGY & PLANNING POLICIESName of Policy Type and purpose

Spatial Planning and Urban Design

Spatial DevelopmentFramework (SDF)

Endorsed by Council on 30 March 2011. The SDF replaces outdated spatial plans and policies that have beenused to inform land use decisions, and will guide the way Cape Town should grow in the future.

Strategic Development Information & GIS

Information and KnowledgeManagement Framework

To move the City towards the establishment and use of an integrated knowledge hub, which will act as a one-stop portal/gateway for users to access development data, information and knowledge resources.

Spatial InformationStrategy

To improve management of the City’s spatial information to ensure data integrity, sharing of and access to infor-mation, and the application of spatial information to support planning and service delivery.

Environmental Resource Management (ERM)

Integrated MetropolitanEnvironmental Policy (IMEP)

IMEP is an overall guiding policy for environmental sustainability in Cape Town. It sets policy goals and aframework for developing sector-specific implementation strategies.

Coastal Zone ManagementStrategy

The effective protection and management of the city’s coastline and coastal processes

Local Biodiversity Strategyand Action Plan

The effective protection and management of the city’s biodiversity and natural ecosystems, and institutionalprocesses and action plans

Environmental Educationand Training Strategy

A strategy aimed at implementing environmental education and training for both members of the public and Citystaff

Cultural Heritage Strategy The effective protection and management of the city’s cultural heritage

Energy and Climate ChangeStrategy

To reduce the city’s energy usage and carbon footprint, and implement renewable-energy projects

Energy and Climate ChangeAction Plan

An action plan for the implementation of the Energy and Climate Change Strategy, including updated targets

Invasive Alien SpeciesStrategy

The eradication of invasive alien plant and animal species in the city

tions, and shape PDBM’s legal and functional mandate.These delegations set out the legal obligations, pow-

ers, procedures, etc. to which Council, and therefore theDepartment, must adhere when processing develop-ment applications, such as planning and building devel-opment applications.

Numerous laws directly affect the Department’smandates, including land use planning ordinances,scheme regulations, and national building regulationsand standards.

Other legislation that has an indirect bearing on theDepartment’s work includes that relating to environ-mental health and environmental management, her-itage resources, and outdoor advertising.

The core functions and services provided by thePBDM Department are delivered through a decen-tralised service delivery model, which consists of eightplanning district offices. This service is providedthrough a system of customer interfaces, from the frontcounters to the technical specialist back office.

Most of the powers, duties and functions to performthe core functions are sub-delegated to officials in thedistricts to finalise development applications. The direc-tives and supporting functions to the district offices arecentralised, and mostly provided by this section situat-ed at head office in Cape Town.

Spatial Planning and Urban DesignThe Spatial Planning and Urban Design (SPUD) Depart-ment aims to lead and guide the spatial and physicaltransformation of Cape Town, through co-ordinating,developing and monitoring spatial policies, plans anddevelopment. Such plans must inform and lead theCity’s investment and development trajectory.

The Department is responsible for preparing, as partof Cape Town’s IDP, a city-wide spatial developmentframework. This requires integrating and balancing thevarious requirements of different sectors (such as hous-ing, transport, utilities and economic development) thataffect and influence the spatial growth, form and per-

Page 60: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 59

formance of Cape Town. Urban design guidance is provided by means of spa-

tial planning and urban design frameworks, policiesand guidelines, as well as ongoing strategic advice andmonitoring to assist in their implementation.

The Department also aims to demonstrate spatialplanning and urban and landscape design policy andprinciples through design, facilitation and implementa-tion of strategic capital programmes and projects, andfrequent qualitative input into land use and buildingdevelopment applications made to the City.

Development Facilitation Unit (DFU)The Development Facilitation Unit (DFU) facilitates andco-ordinates major projects (with a value greater thanR100 million) and strategic projects identified byMayco in order to ensure a coherent and efficient Cityresponse to these developments.

The DFU also enables major developments on Coun-cil-owned land to market and promote the City as adesirable investment location for property developmentprojects in partnership with the private sector.

Given the key role in city development played by cer-

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

PLA

NN

ING

GLO

SSA

RY

KEY STRATEGY & PLANNING PROCESSES AND POLICIES REQUIRING COUNCIL INPUT Name of policy/process Type and purpose

Planning & Building Development Management (PBDM)

Cape Town Zoning Scheme A Cape Town Zoning Scheme (CTZS) was endorsed by Council in December 2010, and is currently with the MECfor recommendation. The CTZS collapses 27 different schemes, dating from the 1940s, throughout the City intoone unitary scheme.

Cape Town Zoning Scheme:Conversion of Zoning Maps

A component of a zoning scheme is the zoning maps. In replacing the existing zoning maps a new convertedzoning map needs to be compiled.

Draft Planning Bylaw Municipal planning is a municipal legislative competency.

Local Area Policies Policies for: Belvedere Road, Boston, Brighton Road, Weltevreden Valley (Schaapkraal), Claremont CBD edges,and Old Stikland Outspan and surrounding areas

Building Bylaw Sections regarding boundary walls and fences

Review of existing policies Review of policies relating to early childhood development centres, tourist accommodation, and the sale of alco-holic beverage from residential properties

Spatial Planning and Urban Design

Medium to long-termgrowth options study

To consider the phasing and costs of growth in the two growth corridors identified for Cape Town

Final draft integrateddistrict spatial developmentplans and environmentalmanagement frameworks

Provide a further level of planning and guidance to the City’s Spatial Development Framework (CSDF) at the dis-trict and subdistrict level

Final Draft DensificationPolicy

Guide appropriate location for, and informants to, sensitive densification in Cape Town

Final Draft DevelopmentEdges Policy

Guide the process of review of the urban edge, and the assessment of applications to amend the urban edge

Tall Buildings Policy Guide the preparation and assessment of tall-building applications

Urban Design Policy Provide urban guidance to the preparation and assessment of development proposals

Local area plans/policies • Kapteinsklip development framework• Table View beachfront development framework• Urban edge and development guideline for the Schaapkraal smallholdings in the Philippi horticultural area

Strategic Development Information & GIS

City Development Strategy To develop a longer-term, 20 to 30-year City Development Strategy (CDS) and plan to influence and inform thefuture development path of Cape Town. A draft strategic framework for a CDS for Cape Town 2040 (April 2011)has been completed under guidance of Mayco. The identification of a political champion to lead the process isseen as an important next step.

Environmental Resource Management (ERM)

Revision of IMEP, updatingof Environmental Agenda

Approval of an Integrated Metropolitan Environmental Policy (IMEP) and Environmental Agenda

Invasive Alien Species Policy Approval of the policy for eradication of invasive alien plant and animal species in the city

Faunal Policy To provide a holistic and consistent approach to the management of indigenous mammal fauna on City-ownedland. Approval still pending.

Baboon Policy To define the City's approach on how the municipality deals with the baboon issue. Approval still pending.

Safety and Security Policyfor Nature Reserves

To ensure that security on City nature reserves is handled in a consistent way to ensure the protection of visitors,staff, infrastructure and biodiversity. Approval still pending.

South-east StrandveldImplementation Plan

A conservation implementation plan for the most important strandveld biodiversity remnants that is least in con-flict with alternative proposed land uses. Approval still pending.

DIR

ECTO

RATE

S

Page 61: City of Cape Town   Council Overview

60 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

tain state-owned enterprises and other organisations,such as Eskom, Telkom, Intersite, Wesgro and the CapeTown Partnership, the DFU liaises closely with suchorganisations to ensure regular structured engagement.

Strategic Development Information & GISThe Strategic Development Information & GIS (geo-graphic information systems) Department is responsiblefor the provision of strategic development informationand knowledge and related support services to enabledecision makers to address a wide range of develop-ment needs within the city, with limited resources.

The Department’s strategy and business plan areguided by the City’s Information and Knowledge Man-agement (IKM) Framework, as well as, among otherlaws, the Municipal Systems Act (Section 26), in termsof which municipalities are required to monitor andmeasure levels of development.

Environmental Resource Management (ERM)Environmental Resource Management (ERM) leads theimplementation of an Integrated Metropolitan Environ-mental Policy (IMEP) and Environmental Agenda, there-by ensuring that the City’s environment is protectedand sustainably utilised for its communities.

ERM is also mandated to manage the global respon-

sibility for Cape Town to ensure that the unique, diverseand endemic biodiversity, coastal landscapes andecosystems and the exceptional heritage and culturalresources within its boundaries are protected, managedand integrated with the City’s urban landscape andsocial fabric.

Planning district service delivery modelThe implementation of the eight-district service deliverymodel is a success story that entailed the rationalisa-tion of 17 disparate and understaffed offices into eightintegrated service centres. The model integrates thefunctions of planning and building management, spa-tial planning and urban design, and environmentalmanagement in the eight district-based offices.

Four regional enforcement units were set up, eachcovering two planning districts. Implementation of themodel started in September 2007, and was completedin December 2008.

The current focus is on streamlining the cross-direc-torate service integration in respect of land use man-agement and building plan approval processes, and theformulation of the City Spatial Development Frame-work (SDF) and the eight-district spatial developmentplans (SDPs) and environmental management frame-works (EMFs).

KEY STRATEGY & PLANNING PROJECTSName of project Department and description

Spatial Planning and Urban Design

Local Area PriorityInitiatives (LAPIs)

To provide forward local area plans for public investment in: Mfuleni; Site C, Khayelitsha; Lentegeur, MitchellsPlain, Valhalla Park, Gugulethu/Manenberg, Langa and Du Noon

Quality public spaceprogramme

Completion of 23 quality public spaces as amenities for the residents

Athlone Power Station Redevelopment of the Athlone Power Station site into a mixed-use urban district

Salt River Market Revitalisation of historical market, with the intention to provide gap housing and upgraded commercial facilities

Monwabisi coastal node Feasibility study for development around the Monwabisi coastal resort that will link Khayelitsha to the sea

Strategic Development Information & GIS

Integrated SpatialInformation System (ISIS)

ISIS improves the integrity of property information by bringing together property data, processes and informationsystems. System development has been completed and will ‘go live’ when system testing has been completed.

Knowledge Hub To establish a one-stop web-based portal/gateway to access development data, information and knowledge

Spatial reporting tool To provide spatial and indicator data through a map-based viewer to all City departments and to the public

Community satisfactionsurvey

This annual survey provides a statistically robust measure of the satisfaction levels of households and businesseswith City of Cape Town services

State of Cape Town report To provide an overview and analysis of the most pertinent issues influencing the development of Cape Town

Information and KnowledgeManagement (IKM) Policy

The aim of the policy is to establish better practice in information and knowledge management, and to manageinformation and knowledge in a way that supports the City’s immediate and long-term business requirements.

2010 World Cup socio-impact assessment

To assess the short-term economic, social and sport impacts of the World Cup on Cape Town, in partnership withthe Cape Higher Education Consortium. The release of the results is expected around June 2011.

Environmental Resource Management (ERM)

Youth EnvironmentalSchool (YES) programme

Makes young learners across the city aware of the environment by providing formal environmental education at23 nature reserves. To date, over 55% of schools have been reached in Cape Town – more than 65 000 learners.

Sustainable Livelihoodsprogramme

Promotes livelihoods and greening interventions among poor communities by promoting community food gar-dens, indigenous gardening and soil protection. Communities are also capacitated on resource-efficient living.

Rietvlei offices Construction of biodiversity management offices at Rietvlei Nature Reserve is under way.

False Bay offices Construction of biodiversity management offices at False Bay Nature Reserve is under way.

Development Facilitation Unit (DFU)

There are 34 major developments in process at various sites across the metropolitan areas.

KEY CONTACTSActing Executive Director

Dr Ivan BromfieldTel

021 400 2100Fax

021 421 4894E-mail

[email protected]

Executive Assistant:Ndzuki Maqungo

Tel021 400 4007

Page 62: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 61

The Transport, Roads & Major Projects Direc-torate plays a critical role in the planningand management of the transport, roadand stormwater functions, and in the deliv-ery of major projects such as the 2010 FIFA

World Cup and the integrated rapid transit project.The Directorate delivers a range of functions through

its six departments:

TransportThe Transport Department leads and directs the trans-port functions of the City in order to meet non-

motorised, road, air, water, rail, freight and all othertransport needs. This is achieved by ensuring the provi-sion of a coherent transport network, system, infra-structure and services.

Roads & StormwaterThe Roads & Stormwater Department is primarilyresponsible for roads and stormwater systems plan-ning, the implementation of all capital infrastructureprogrammes, as well as the management and mainte-nance of the associated infrastructure.

A current business improvement initiative within the

PLA

NN

ING

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

DIR

ECTO

RATE

SG

LOSS

ARY

Transport, Roads & Major Projects Transport, Roads & Stormwater | Development Services | Technical OperationsIntegrated rapid transit | Cape Town Stadium | Urban Renewal Programme

KEY FACTSStaff complement

1 709Operating revenue

R521 889 000Operating expenditure

R1 855 942 000Capital expenditureR1 876 566 000

Cape Town Stadium and the integrated rapid transit (IRT) system are two of the biggest projects in the City’s recent history.

Page 63: City of Cape Town   Council Overview

62 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

KEY TRANSPORT, ROADS & MAJOR PROJECTS POLICIES Name of policy Type and purpose

Transport

Integrated Transport Plan(ITP) 2006 – 2011

The ITP is a five-year strategic plan prepared in terms of the requirements of the National Land Transport Act of2009. It comprises a number of strategies, which include transport safety, public transport, transport infrastruc-ture, travel demand management, freight, non-motorised transport, ports, airports, the road network, asset man-agement, funding and public consultation.

Roads & Stormwater

Footways Implementation This policy aligns with the City’s Integrated Transport Plan (ITP) to provide pedestrian facilities

Gated Development Policy This policy proposes the City’s approach to gated communities and access

Provision of Road Toll This policy advocates alternatives to the proposed N1/N2 toll road being operated as a tolled road

Provision of Roads inInformal Settlements

This policy set minimum levels of service pertaining to the provision of roads in informal settlements (on publicland only) and ensures that communities living in informal settlements have adequate mobility

Recovery of Damages toNon-insured City property

The policy promotes the recovery from the responsible person/s of the cost of repair or replacement of City-owned property that is accidently, intentionally or carelessly damaged

Traffic Calming A policy regulating the use of physical traffic calming measures on certain roads

Unmade Roads Providing a mechanism for determining the priorities for the upgrading of unmade roads and streets in the city

Draft Security Hut Policy To manage and regulate the process for the placement of security huts within the reserves of municipal publicroads and streets

KEY TRANSPORT, ROADS & MAJOR PROJECTS POLICIES REQUIRING COUNCIL INPUTName of policy Type and purpose

Transport

Development of a Five-yearHigh-level Business Plan

Approval, monitoring and oversight of the implications of the requirements of the National Land Transport Actfor the City of Cape Town

Single Point of Authority forTransport

Formalise the establishment of a single point of authority for transport in terms of Section 93 of the NationalLand Transport Act (NTLA) of 2009. Approval, monitoring and oversight on grouping of all transport functions ina single, well-managed structure, with clear distinction between strategic and operational functions.

Assignment of AdditionalTransport Functions

Process on assignment of additional transport functions in terms of the requirements of the NLTA, Municipal Sys-tems Act, and other local government legislation. Includes approval of feasibility studies and the development ofthree and four-year business plans and due diligence reports.

Integrated Transport Plan Approval, monitoring and oversight of development of the outline of transport priorities, strategies and pro-grammes for the next five years, and as a sector plan and input into the Integrated Development Plan (IDP).Approval, monitoring and oversight of area transport plans to ensure alignment with development objectives.

Transport Safety Plan Approval, monitoring and oversight of the development of a five-year plan focusing on transport safety interven-tions to ensure improved transport safety

Roads & Stormwater

Fuel Levy Allocation Approval from Budget Steering Committee and Council regarding redirecting the full fuel levy allocation for roadinfrastructure development and maintenance

Business ImprovementProject

Approval from portfolio committee and Council for the implementation of recommendations from the BusinessImprovement Project, to enhance services rendered with particular reference to the Operations and AssetsBranch, and the Infrastructure, Maintenance and Depots Branch

Security Hut Policy Complete the public participation process for the implementation of the Security Hut Policy

Policy on DevelopmentContributions

Developing a new policy to replace the Interim Policy on Development Contributions, and to determine the typesof applications where development contributions in terms of Policy MC 45/09/04 will be applicable. Report on aquarterly basis on the development of this new policy to portfolio committee and final approval by Council.

Pavement and BridgeManagement Systems

Report on a six-monthly basis on the progress of these two systems to the portfolio committee, and finalapproval by Council

Integrated rapid transit (IRT) project

Traffic Calming A policy regulating the use of physical traffic-calming measures on certain roads

Land Acquisition Approval of land acquisition for IRT facilities

IRT Operating Companies Formation and appointment of IRT operating companies

Cape Town Stadium

Business Plan Framework Discussion by EMT Review Management Team, and approval

Stadium and Park Staffing Approval of structure

Tariff Structure Approval for tariff structure for Cape Town Stadium and Green Point Park for 2011/12

Rezoning Approval

Page 64: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 63

Department entails the improvement of the functionali-ty of depot operations. The key objective is to enhancethe effectiveness and efficiency of the services renderedby the Department through various depots city-wide.

Integrated Rapid Transit (IRT)The Integrated Rapid Transit (IRT) Department aims toprovide elements of an effective and efficient road-based public transport system consisting of a networkof bus rapid transit (BRT) services, support feeder busservices, and infrastructure that integrates with othertransit modes into a high-quality city-wide transit net-work.

The IRT implementation team is supported by an IRToperations team.

Technical DepartmentWith the conclusion of the 2010 FIFA World Cup eventin July 2010, the focus of the 2010 Technical Depart-ment would be the completion of Green Point Park, therehabilitation of Green Point Stadium (including a syn-thetic athletic track) and the rehabilitation of the sportsfields on Green Point Common.

The 2010 Technical Department is in the process ofwinding up operations, as all major programmes relat-ed to the 2010 World Cup have been successfully com-pleted.

The 2010 Operations staff have been seconded on atemporary basis to manage the stadium and GreenPoint Urban Park in terms of efficient and effectivebusiness principles.

PLA

NN

ING

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

DIR

ECTO

RATE

SG

LOSS

ARY

KEY PROJECTS OF THE TRANSPORT, ROADS & MAJOR PROJECTS DIRECTORATEProject Type and purpose

Transport

Public transportinfrastructure upgrades

Ongoing upgrades and investment in public transport infrastructure, including:• public transport interchanges;• Park & ride infrastructure projects at rail stations; and• public transport support infrastructure (stops, embayment, signage, etc.).

Transport network systemsmanagement

Ongoing upgrade of the area traffic signal system and infrastructure, and transport safety projects

Non-motorised transportprojects

Ongoing upgrade and construction of walking, cycling and public space enhancement projects

Roads & Stormwater

Bulk infrastructure Bulk roads and stormwater infrastructure for housing projects – R35 mVlakteplaas bulk roads and stormwater infrastructure – R5 m

Roads Reconstruction of roads across the metro – R58 mRehabilitation of roads across the metro – R10 mPelican Park – Strandfontein Rd – R24 m

Rail Khayelitsha rail extension – R22 m

Non-motorised transport City-wide improvements of R20 m, and R10 m for implementing a city-wide plan

Integrated rapid transit (IRT) project

IRT implementation • IRT: West Coast corridorTwo new contracts have commenced and two new tenders awarded, and work will continue in the new finan-cial year.

• IRT: Inner-city serviceTo be completed once IRT route is finalised

• IRT: Fare collectionProject commenced in March 2011 after an appeal process. Will continue in new financial year.

• IRT: Control centreTender awarded, but there was an appeal. Awaiting outcome before work can commence, hopefully in newfinancial year.

Cape Town Stadium

Ongoing Provision of fire & access control system maintenance services R2 345 000Provision of audio visual system maintenance services R940 000 Provision of heating, ventilating and cooling (HVAC) & mechanical pump maintenance services R750 000 Provision of lift maintenance services R320 000 Provision of general building maintenance services R1 230 000 Provision of cleaning and waste management services R2 400 000 Provision of electrical, lighting & power generation system maintenance services R2 888 000 Provision of pitch maintenance services R1 700 000 Provision of landscaping maintenance services R2 700 000 Provision of specialised stadium infrastructure cleaning services R1 400 000 Safety and security R4 000 000 IT services R796 000

KEY CONTACTSExecutive Director:

Mike MarsdenTel

021 400 5010Fax

021 400 1390E-mail

[email protected]

Executive Assistant:Trish Kirby

Tel021 400 5011

Page 65: City of Cape Town   Council Overview

64 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

Page 66: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 65

The Utility Services Directorate aims toensure sustainable municipal infrastructureand services – water, sanitation, electricityand solid waste – that will enable econom-ic development and provide equitable

access to basic services for all citizens of Cape Town.The Directorate’s policies and strategies are intended

to address the provision of basic municipal servicesrelated to electricity supply, water treatment and sup-ply, sewerage treatment, and the provision of wastemanagement services.

These policies and strategies are geared to complyand align with national legislation and other regulatorypolicies related to municipal services.

SanitationAll formal properties in the city receive sanitation serv-ices in the form of a metered connection, while a smallnumber of erven that do not have a piped sewer con-nection have septic tanks. A backlog in basic sanitationas a result of the current growth is found only in theinformal settlement environment, which the City aimsto eliminate by 2015/16.

WaterAll formal properties in the city receive water through ametered connection. In informal settlements, the focusis for provision of a minimum service through commu-nal services.

PLA

NN

ING

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

DIR

ECTO

RATE

SG

LOSS

ARY

Utility ServicesElectricity Services | Water and Sanitation | Solid Waste Management

KEY FACTSStaff complement

8 884Operating revenueR12 468 206 000

Operating expenditureR11 338 763 000Capital expenditureR1 806 505 000

Behind the basic services on which residents rely is an enormous infrastructure, managed and maintained by more than a third of the workforce.

Page 67: City of Cape Town   Council Overview

66 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

KEY UTILITY SERVICES POLICIES Name of policy Type and purpose

Electricity Services

Electricity Supply Bylaw To give effect to the policy on the levying of fees for a municipal service provided by the municipality or by wayof service delivery agreements

Electrification Policy The policy for providing this municipal service

Metering Policy The policy for providing this municipal service

Review of the business plan Adoption and approval of the Integrated Development Plan (IDP), which includes the business plan for ElectricityServices

Water and Sanitation

Water Services Act Provides for the rights of access to basic water supply and basic sanitation; the setting of national standards andnorms; standards for tariffs, and water service development plans, and provides a regulative framework for waterservices institutions and water services intermediaries

Water Bylaw Provides operational and administrative requirements for the provision of water installations; water use; the rolesand functions of the owner; the powers and responsibilities of the Director: Water & Sanitation; the service levels;recovery of costs; duties of the public; dealing with emergency situations; entry authority to water services facili-ties; delegations by the City Manager to the Director: Water & Sanitation; issuing of compliance notices; offencesand penalties; plan approval; fire installations; water restrictions and conservation, and persons required to doplumbing work

Treated Effluent Bylaw Controls and regulates treated effluent in Cape Town and provides for matters connected with it

Wastewater Bylaw Provides the operational and administrative requirements for the handling of sewerage and industrial effluent

Strategic Plan Provides the framework for the strategic management of the Department

Five and ten-yearinfrastructure plans

The Department has a ten-year Wastewater Strategy Plan, a Bulk Water Master Plan, a ten-year Water DemandManagement Plan, and is in the process of developing a five-year Reticulation Upgrade, Replacement andRefurbishment Plan. Annual maintenance plans exist for reticulation and wastewater services.

Solid Waste Management

Integrated WasteManagement (IWM) Policy

Aims to reduce generation of waste and the environmental impacts of waste, so that the socio-economic develop-ment of South Africa, the health of the people and the quality of environmental resources are no longer adverselyaffected by the effects of waste (National Waste Management Strategy Implementation Report, 2004, p. 1)

Integrated WasteManagement (IWM) Bylaw,2009, and IWMAmendment Bylaw, 2010

Aligns with the new National Environmental Management Waste Act to introduce waste minimisation, to preventenvironmental damage, to ensure all waste management role players do their business in accordance with legis-lation, to ensure contracting and payment for services to collect and dispose of waste, and to be able to enforcethe law and recover costs where littering and illegal dumping of waste are prosecuted

Accreditation Policy forWaste Management ServiceProviders

This IWM Bylaw requirement regulates waste management service providers and their associated activities toreduce potential risks and impacts on health, safety and the environment as well as on resources

Alternative Service DeliveryMechanisms

In terms of Section 78(3), “Assessment of Alternative Service Delivery (ASD) mechanisms”, of the MunicipalSystems Act (MSA), an assessment was required to enable Council to make an informed decision as to the mostappropriate mechanisms for the Solid Waste Management Department to meet new legislative requirements, andto reduce waste and divert waste from landfill.

KEY UTILITY SERVICES POLICIES REQUIRING COUNCIL INPUTName of policy Type and purpose

Electricity Services

Review of the business plan Adoption and approval of the Integrated Development Plan (IDP), which includes the business plan for ElectricityServices

Water and Sanitation

Review of the WaterServices Development Plan

The Water Services Development Plan is a statutory plan in terms of the Water Act.

Solid Waste Management

Implementation of MSAS78(3) recommendations

Implementation of recommendations contained in report as per Council resolution C34/03/11. Revising IntegratedWaste Management Policy requires Council approval. Revising Integrated Waste Management Plan requiresCouncil approval to continue public/private partnership initiatives once feasibility and risk assessments have beenconcluded (unlikely to be within the first six months).

Integrated WasteManagement Plan andPolicy

The Integrated Waste Management Plan and Policy includes the 20-year capital infrastructure plan for solid wastemanagement services in the city. This is part of the IDP, and is a statutory requirement as per the NationalEnvironmental Management: Waste Act of 2008 (NEMWA), and has been a part of the IDP since 2006.

Page 68: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 67

While the priority has been to provide an emergencylevel of service to all households in all settlements, theCity is also extending the basic-level coverage and den-sity of services.

The City exceeds the national standard, which is toprovide access to potable water within a 200 m radiusof a dwelling unit, and has far fewer households shar-ing a tap than the national minimum standard of 25households per tap.

ElectricityThe City’s Electricity Services Department provides elec-tricity distribution services to approximately 70% of thecity’s residents, with some areas in the eastern andnorthern parts of the city serviced by Eskom.

Electricity service availability and access backlogsare mainly still a problem in informal settlements, andthese are being addressed by the Department andEskom’s electrification programmes.

As approximately half of the poor households in thecity fall within Eskom’s service area, the national powerprovider and the City work together to ensure effectiveplanning and provision of electrification programmes.

Certain informal areas are excluded from the electri-fication programme if the dwellings are:• below the 50-year floodline;• on unsuitable land, such as landfill sites;• in road, rail or power line reserves; or• on private property.At this stage, the bulk of the electrical connectionbacklog in informal areas is found in the Eskom supplyportion of the city.

Refuse removalThe City delivers a weekly kerbside refuse collectionservice to all formal properties within its administrativeboundaries. Informal settlements receive integratedarea cleaning and refuse removal services, includingdoor-to-door bagged refuse removal. The refuseremoval service is a guaranteed service plannedaccording to a weekly scheduled programme.

Of the estimated total of 189 593 informal settle-ment households, 187 697 receive solid waste removalservices, leaving a backlog of around 1%.

The backlog is a result of ongoing informal house-hold and settlement growth, but is dealt with on anintegrated basis as soon as information of the location

of new informal households becomes available to theSolid Waste Management Department.

Free basic services are accommodated in the City’sTariff Policy to ensure that access to basic services ispossible without inducing economic hardship on thepoor, and the indigence level has been lifted to ensurethat tariff increases can be accommodated even wherethe amount provided in terms of National Treasury’sequitable share grant is insufficient.

The approval of the 2011/12 MTREF budget byCouncil will be key in making this policy effective.

Challenges and risksSeveral strategic development or risk issues have alsobeen accommodated in policy or strategy. In this con-text, population and economic growth is factored in.Summarised, these are as follows:• Security of water supply: The Western Cape is a

water-scarce region that is likely to be affected byclimate change in the immediate future. The Waterand Sanitation Department’s strategy is to examinethe feasibility of using or developing untappedresources or mechanisms to reduce the risk.

• Water demand management: This is directly linked towater security. It is managed through the WaterBylaw, stepped tariffs and communications cam-paigns. Pressure management implementation, areametering and water demand management devicesform part of the implementation of the strategy.

• Electricity demand-side management: Much of this ismanaged through stepped tariffs. In terms of infra-structure, more energy-efficient street lighting infra-structure is being deployed to reduce the power con-sumed to provide public and street lighting and traf-fic signals. The medium-voltage infrastructure isbeing upgraded and strengthened in various parts ofthe city to cope with new growth and deal withbacklogs. A change in public behaviour is targetedthrough an energy-saving campaign that will contin-ue into the foreseeable future.

• Waste minimisation: A comprehensive review of thecurrent waste service in terms of the Municipal Sys-tems Act, Section 78, has been concluded and therecommendations have been adopted by Council.The Integrated Waste Management Policy and Planalready allows for various initiatives that make upthe waste minimisation part of the City’s waste man-

PLA

NN

ING

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

DIR

ECTO

RATE

SG

LOSS

ARY

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 67

DIR

ECTO

RATE

S

KEY CONTACTSExecutive DirectorLungile Dhlamini

Tel021 400 2500

Fax021 400 5913

[email protected]

Executive Assistant:Nobby Mentoor

Tel021 400 3500

Page 69: City of Cape Town   Council Overview

68 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

agement strategy, but will be augmented due to therecommendations.

• Infrastructure asset management: The three depart-ments have all developed first-stage infrastructureasset management plans, and are in the process ofdata capture and data verification for different assettypes. The SAP system is also being developed to

integrate different modules which will eventuallyallow seamless asset and financial maintenanceusing a full life-cycle asset management approach.This is a long-term project involving many depart-ments across Council with a scope of at least tenyears, considering that there are more than3 000 000 assets on the City’s books.

KEY UTILITY SERVICES PROJECTSName of project Type and purpose

Electricity Services

Upgrades andrefurbishment

Upgrading and refurbishment of existing infrastructure across the metro as part of the network developmentprogramme. The most significant projects to be undertaken during the 2011/12 financial year are:• replacement of 33 kV cables from Oakdale to Boston (R54 million);• replacement of the Vanguard transformer (R41 million); and• replacement of system equipment (R96 million).Continued conversion of 180 000 mercury-vapour street lighting lamps to the brighter, more environmentallyfriendly, energy-efficient high-pressure sodium lamps, which will reduce energy consumption by at least 12%.

Water and Sanitation

Water demandmanagement

The main programmes and projects that form part of the water demand management strategy are the:• water leaks repair programme;• pressure management programme;• roll-out of water management devices;• treated-effluent re-use programme; and• educational and awareness programmes.

Increased treatmentcapacity, improvedprocesses or improvedeffluent quality

Key projects include:• extension to the Zandvliet Wastewater Treatment Works (R55 million);• Bellville Wastewater Treatment Works upgrade (R102 million);• new bulk sewer for Thornton/Langa (R45 million); and• Athlone Wastewater Treatment Works upgrade (R11,5 million).

Main projects for bulkwater, reticulation andsanitation over the next sixmonths

The bulk water augmentation scheme links Cape Town to the Berg River Dam. The scheme phases are the: • 300 megalitre (Mℓ) Muldersvlei reservoir and linking pipelines with the Wemmershoek pipeline; • potable water pipeline from Muldersvlei reservoir to Spes Bona; • 500 Mℓ/day Muldersvlei Water Treatment Plant (MWTP) and raw-water pipeline from Berg River Dam; and• Voëlvlei Dam to Glen Garry reservoir transfer scheme components.

TMG feasibility study andpilot project

To assess the feasibility of utilising the Table Mountain Group (TMG) aquifer as a potential water source. Workon a pilot well field with an approximate yield of 5 million m3 per year is planned for 2011/12. The informationgathered from the study will be used to make a decision on the feasibility of a future water supply scheme.

Infrastructure upgrades andrefurbishments

• Wemmershoek Dam spillway radial gates refurbishment• Standby alternator sets (standby power) at multiple stations• Molteno No. 2 pump station 3,3 kV starter panel replacement• Blackheath Water Treatment Works residual water recovery pump station 400 kW motor replacement• Kildare pump station motors and control equipment replacement• Replace and upgrade water network city-wide (R51 million)• Conterman’s Kloof water mains to Parklands (R30 million)• Wastewater treatment infrastructure replacement and refurbishment city-wide (R30 million)• Sewer network replacement and refurbishment city-wide (R29,3 million)• Kraaifontein Wastewater Treatment Works upgrade (R25 million)• De Grendel reservoir upgrades (R24 million) • Informal areas incremental upgrade (R34,3 million)

Solid Waste Management

Implementation of theIntegrated WasteManagement (IWM) Policy

• Upgrade and replacement of Solid Waste plant and vehicles (R137 million)• Development of landfill infrastructure (R157 million)• Rehabilitation and closure of landfill sites (R40 million)• Acquisition of plant and equipment: refuse compactor vehicles and other refuse trucks• Construction of lined cells at Vissershok North landfill site• Final extension of the current regional landfill facility• Rehabilitation of landfill sites: Completion of the rehabilitation of the Swartklip landfill site • Construction of drop-off facilities: Spine Road drop-off project in Mitchells Plain

Page 70: City of Cape Town   Council Overview

PLA

NN

ING

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

DIR

ECTO

RATE

SG

LOSS

ARY

PLA

NN

ING

Plans, frameworks and strategies

In order to meet the needs of its residents and provide a foundation for growthand development, the City has developed several important plans, frameworks and

strategies. These range from the five-year Integrated Development Plan (IDP) tostrategies for improving transport. Some of these have been approved, and others

are being developed for submission to appropriate Council forums.

In this sectionIntegrated Development Plan (IDP)

Service Delivery and Budget Implementation Plan (SDBIP)Annual and quarterly reporting

Local Government Turnaround StrategyCity Development Strategy

Cape Town Spatial Development FrameworkIntegrated Transport Plan

Infrastructure Asset Management and PlanningDraft Economic and Human Development Strategy

Draft Events Strategy

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 69

Page 71: City of Cape Town   Council Overview

Integrated development planning is a processthrough which municipalities prepare a developmentplan that will be implemented over a five-year peri-

od. The Integrated Development Plan (IDP) guides andinforms all planning, budgeting, management and deci-sion making.

In a nutshell, integrated development planning isabout the municipality identifying its priority issues orproblems, which, in turn, determine its vision, objec-tives and strategies, followed by the identification ofprojects to address the issues.

A critical phase of the IDP is to link planning to themunicipal budget – in other words the allocation ofinternal or external funding to those identified proj-ects – because this will ensure that implementation ofprojects, and hence development, is directed by the IDP.

The legal status of an IDPThe Municipal Systems Act of 2000 requires all munici-palities to draft IDPs, which supersede all other plansof the municipality. However, that is not the only rea-son why municipalities must prepare the plans.

Municipalities have to ensure that the quality of lifefor its citizens is improved through the provision ofbasic services, creation of jobs, promotion of democra-cy, accountability, and eradication of poverty.

Preparing and having the IDP therefore enables themunicipality to be able to manage the process of fulfill-ing its developmental responsibilities.

The lifespan of an IDPIn terms of the Municipal Systems Act, every newCouncil that comes into office after the local govern-ment elections has to prepare its own IDP, which willguide that Council for the five years that it is in office.

The IDP processIntegrated development planning is a participatory

process, which requires involvement of a wide range ofstakeholders. It takes a municipality six to nine monthsto complete an IDP. The IDP is reviewed annually.

Through the IDP, the municipality is informed aboutthe problems affecting its municipal area and, beingguided by information on available resources, is able todevelop and implement strategies and projects toaddress the problems.

The core components of the IDPThe IDP is made up of the following core components:• The analysis: An assessment of the existing level of

development, which includes identification of com-munities with no access to basic services

• Development strategies: The municipality’s vision,Council’s development priorities and objectives, anddevelopment strategies

• Projects: Major programmes and projects• Integration: It includes important planning tools (dis-

cussed later in this section) such as the SpatialDevelopment Framework, the Disaster ManagementPlan and budget (both capital and operational budg-et), and key performance indicators and targets.

Management of the IDP processThe Executive Mayor has the responsibility to managethe preparation of the IDP, or assign this responsibilityto the Municipal Manager. In the City, the IDP Directorreports directly to the City Manager. In most municipal-ities, this function falls within the Office of the Munici-pal Manager, while the Executive Committee or Mayormanages the process.

Next stepsCouncil must approve a process plan before 30 August2011 for the drafting of the IDP for the new term ofoffice. The new IDP will be approved by Council on31 May 2012.

Integrated Development Plan (IDP)

DOCUMENT LINKS• The 2011/12 IDP

This document isavailable in PDF formaton the accompanyingCD, on CityWEB andthe City’s website.

KEY CONCEPTS• Integrated development

planning is aparticipatory processthrough whichmunicipalities prepare adevelopment plan.

• The IDP helps the Cityin identifying priorityissues or problems,which, in turn,determine its vision,objectives andstrategies.

• This IDP is implementedover a five-year period

• The new Council mustprepare its own IDP.

• Council must approve aprocess plan for a newIDP before 30 August2011.

• An IDP is required interms of the MunicipalSystems Act.

70 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

Page 72: City of Cape Town   Council Overview

PLA

NN

ING

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

DIR

ECTO

RATE

SG

LOSS

ARY

PLA

NN

ING

The Service Delivery and Budget ImplementationPlan (SDBIP) is a detailed annual plan that giveseffect to the IDP and the budget, and is effective

if the IDP and budget are aligned with each other.The SDBIP therefore serves as a ‘contract’ between

the administration, Council and the community. Itexpresses the goals and objectives set by Council asquantifiable outcomes that can be implemented by theadministration over the next 12 months.

This provides the basis for measuring performance inservice delivery against end-of-year targets and budgetimplementation.

The process of preparing an SDBIP book must com-ply with Section 53 (1)(c)(ii) and 69 (3)(a) of the Munic-ipal Finance Management Act, Act 53 of 2003, as wellas the municipal budget and reporting regulations.

Brief overview of contentThe SDBIP is essentially the management and imple-mentation tool that sets out in-year information, suchas quarterly service delivery and monthly budget tar-gets, and links each service delivery output to thebudget of the municipality.

This provides credible management information anda detailed plan for how the municipality will providesuch services, as well as the inputs and financialresources to be used.

The SDBIP indicates the responsibilities and outputsfor each of the managers in the top management team,the inputs to be used, and the time deadlines for eachoutput.

The SDBIP therefore determines the performanceagreements of the City Manager and senior managers,

including the outputs and deadlines for which they willbe held responsible.

The SDBIP should also provide all expenditure infor-mation (for capital projects and services) per municipalward, so that each output can be broken down perward, where this is possible, to support ward council-lors in service delivery.

ResponsibilitiesThe Municipal Manager is responsible for the prepara-tion of the SDBIP, which, legally, must be submitted tothe Mayor for approval once the budget has beenapproved by Council.

The SDBIP requires detail for five components:• Monthly projections of revenue to be collected for

each source, such as rates or service charges• Monthly projections of expenditure (operating and

capital) and revenue for each budget vote• Quarterly projections of service delivery targets and

performance indicators for each vote• Ward information for expenditure and service deliv-

ery• Detailed capital works plan broken down by ward

over three yearsOther components that form part of the SDBIP bookare the five-year corporate scorecard as well as theindicator definitions.

Next stepsAll the components above would have served beforeCouncil by 11 May 2011. The final 2011/12 SDBIP bookwill be approved by the Executive Mayor within 28 daysof the approval of the budget in May/June 2011.

DOCUMENT LINKS• The SDBIP

This document isavailable on CityWEB.

KEY CONCEPTS• The SDBIP is a detailed

annual plan that giveseffect to the IDP and thebudget.

• It expresses the goalsand objectives set byCouncil as quantifiableoutcomes that can beimplemented over thenext 12 months.

• The SDBIP containsinformation such asquarterly servicedelivery and monthlybudget targets.

• The SDBIP indicates theresponsibilities andoutputs for each of themanagers in the topmanagement team.

• The SDBIP also providesexpenditure informationfor capital projects andservices by ward.

Service Delivery and Budget Implementation Plan (SDBIP)

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 71

Page 73: City of Cape Town   Council Overview

from each revenue source, and for each vote in themunicipality's approved budget for the relevantfinancial year

• Particulars of any corrective action taken or to betaken in response to issues raised in the Auditor-General’s audit report

• Any explanations that may be necessary to clarifyissues in connection with the financial statements

• Any information as determined by the municipality• Any recommendations of the municipality's Audit

Committee• Any other information as may be prescribed

Next stepsThe next annual report will be submitted to Council on31 January 2012 for the 2010/11 financial year.

Quarterly performance reportsThe Municipal Systems Act and Municipal Planning andPerformance Management Regulations require munici-palities to submit quarterly performance reports on pre-determined performance objectives.

The main purpose of quarterly performance reportsis to review the performance of the municipalityagainst predetermined performance objectives on acontinuous basis, in order to improve:• the economy, efficiency and effectiveness of the

municipality;• the efficiency of credit control and revenue and debt

collection services; and• the implementation of the municipality’s bylaws.

Next stepsThe next quarterly report (4th quarter) will be submit-ted to portfolio committees, Mayco and Council duringAugust 2011.

The City compiles and publishes quarterly andannual reports. The quarterly reports are mainlyfor internal use, and help the municipality to

monitor performance against targets. The annual reportis a much more detailed document, and is available inprint and on the City’s public website.

The annual reportThe annual report is compiled in accordance withChapter 12 of the Municipal Finance Management Act(MFMA). The purpose of an annual report is:• to provide a record of the activities of the municipal-

ity during the financial year to which the reportrelates;

• to provide a report on performance against thebudget and Integrated Development Plan (IDP) ofthe municipality for that financial year; and

• to promote accountability to the community for thedecisions made during the year by the municipality.

Requirements for the annual reportThe following is required, by law, to be included in theannual report: • Consolidated annual financial statements• Auditor-General’s audit report, in terms of Section

126(3), on those financial statements• Annual performance report of the municipality pre-

pared by the municipality in terms of Section 46 ofthe Municipal Systems Act

• Auditor-General’s audit report in terms of Section45(b) of the Municipal Systems Act

• An assessment of any arrears on municipal taxes(rates) and service charges

• An assessment of the municipality's performanceagainst the measurable performance objectivesreferred to in Section 17(3)(b) for revenue collection

Annual and quarterly reporting

DOCUMENT LINKS• The annual report

This document isavailable in PDF formaton the accompanyingCD, on CityWEB andthe City’s website.

• Quarterly reportsThese documents areavailable in PDF formaton CityWEB.

KEY CONCEPTS• The annual report

provides a record of theactivities of themunicipality during thefinancial year.

• It also provides a reporton performance againstthe budget and the IDP.

• The annual reportprovides accountabilityto the community forCouncil’s decisions.

• The next annual reportwill be submitted toCouncil on 31 January2012.

• Quarterly performancereports review theperformance of themunicipality.

72 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

Page 74: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 73

PLA

NN

ING

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

DIR

ECTO

RATE

SG

LOSS

ARY

The City’s turnaround strategyThe City of Cape Town’s turnaround strategy (TAS) isincorporated in the City’s IDP, and, therefore, hasalready implemented a number of measures that dealwith the issues raised, by:• ensuring that the provision of basic services are pri-

oritised (see strategic focus area 2 and the MTREFsections in 2010/11 IDP);

• ensuring a clean and responsible government (seestrategic focus area 8 and the Governance section ofthe 2010/11 IDP);

• ensuring financial sustainability (see the MTREF sec-tion of 2010/11 IDP review); and

• dealing with human resources (see strategic focusarea 8 of 2010/11 IDP review).

Outstanding issuesThe two most important issues the City needs to dealwith in its turnaround strategy are:• urbanisation and informal settlements (see various

initiatives in the strategic focus areas in the 2010/11IDP relating to service delivery, healthy communities,spatial planning and economic development inpreparing for urbanisation); and

• ensuring meaningful community involvement (theCity recently approved a Public Participation Policyto facilitate improved participation).

PLA

NN

ING

Local Government Turnaround Strategy

Nine province-wide assessments of 283 munici-palities were carried out in 2009 by theDepartment of Co-operative Governance and

Traditional Affairs (CoGTA), led by the Minister, Mr Sice-lo Shiceka, together with the respective MECs responsi-ble for local government.

The purpose of the provincial assessments was todetermine the key problems in different thematic areas,and to establish the root causes for the poor perform-ance, ineffective service delivery and distress of dys-functional municipalities.

The results of the assessments were analysed, andissues arising out of/from the overview report led tothe establishment of the Local Government TurnaroundStrategy (LGTAS).

The LGTAS was approved by Cabinet on 2 December2009, and all municipalities are now required to pre-pare a turnaround strategy.

Some of the immediate implementation priorities ofthe LGTAS are to: • address the immediate financial and administrative

problems in municipalities;• tighten and implement a transparent municipal sup-

ply chain management system; and• overcome a ‘one size fits all’ approach by differenti-

ating responsibilities and simplifying IntegratedDevelopment Plans (IDPs).

KEY CONCEPTS• The Local Government

Turnaround Strategywas derived from the2009 assessments of283 municipalities.

• The aim is to identifykey issues inperformance andservice delivery.

• All municipalities arerequired to prepare aturnaround strategy.

• The City’s turnaroundstrategy is part of theIDP.

• Outstanding issuesinclude those relatingto urbanisation andinformal settlements,and improvedcommunityinvolvement.

Page 75: City of Cape Town   Council Overview

The challenges facing the city mean that a shift inthinking and action is needed to secure CapeTown’s liveability and prosperity for current and

future generations. We are living in a world of rapid,unprecedented change, and we have to change with itin a proactive, imaginative and visionary way.

The City has recognised the need to develop alonger-term, 20 to 30-year City Development Strategy(CDS) to influence and inform the future developmentpath of Cape Town.

The CDS needs to give collective strategic directionto the five-year Integrated Development Plans andannual business plans, as well as other public and pri-vate sector plans and processes.

In February 2010, the Mayor appointed a City Devel-opment Strategy (CDS) Mayco Subcommittee to over-see the drafting of a CDS. From this emanated a draftstrategic framework for the long-term development ofCape Town. Known as Cape Town 2040 – A StrategicFramework for a City Development Strategy (CDS) forCape Town, the draft was endorsed by the Mayor andMayoral Committee on 2 June 2010.

In November and December 2010, initial engage-ment sessions with three groups of city leaders frombusiness, education/academia and professional bodieswere completed. Further work was undertaken in Janu-ary and February 2011 with key specialists, both inter-nal and external, from the economic, social develop-ment and natural environment sectors.

Additional refinement of the strategic frameworkwas completed – resulting in A Draft Strategic Frame-work for a City Development Strategy for Cape Town2040 (April 2011).

The April 2011 draft was reviewed by Mayco and theExecutive Management Team (EMT) on 6 April 2011. Itwas agreed to table the draft as part of the handoverdocuments to the new Mayor for consideration.

Overview of content The draft CDS strategic framework outlines a draftlong-term vision; a ‘picture’ of Cape Town in 2040. Inorder to build on Cape Town’s strengths and acknowl-edging its weaknesses, six focus areas are identified,which give a more specific indication of where to focusefforts towards realising the vision for 2040. The sixfocus areas are:• economic attractors;• nature;

• people;• optimal infrastructure;• city form; and• knowledge and skills.Four strategic levers are derived from these focus areas.These are broad statements of intended strategicactions, and are at the heart of the CDS. They are:• economic growth and prosperity;• social development;• natural environment; and• city form and infrastructure.A long-term core focus, such as the focus on sharedexport-linked, resource-efficient economic growth,gives more clarity and direction in order to movetowards a future Cape Town imagined in the visionstatement. For Cape Town to succeed, it is importantthat there is both economic and social development.

Next steps The intention of the draft strategic framework for aCDS for Cape Town 2040 is to have an entry point doc-ument to widen the process through further city-wideengagements (June 2011 onwards), with the aim ofdeveloping a CDS for approval during 2012.

The identification of a champion to lead the processis seen as an important next step.

A communications process plan and dedicatedresources would need to be in place to support theengagement and CDS process plan. It is hoped that theengagement processes will encourage creative contri-butions from the people of Cape Town. A starting pointwould be an educational awareness-building exerciseacross the city through the exchange of information on‘getting to know the city now’ and in the future.

A joint process with other spheres of government,city leaders and others, will lead to partnershiparrangements for the joint action and implementationof the plans as well as to develop a framework forgood governance, budgeting and monitoring.

This will also allow for co-ownership of, and buy-into, the process to select the optimal strategic choicesthat will offer maximum all-round impact, and toensure its implementation and achievement of out-comes to realise the City’s vision.

It is anticipated that the outcomes of this processwill ensure that Cape Town is made resilient, adapt-able, sustainable and ready for a long-term successfulfuture as a world-class city.

City Development Strategy

KEY CONCEPTS• The City Development

Strategy (CDS) is a 20 to30-year plan toinfluence and inform thefuture developmentpath of Cape Town.

• The CDS strategicframework outlines adraft vision of CapeTown in 2040.

• To date, the processinvolves City officials,leaders from business,academia andprofessional bodies

• The CDS aims to buildon Cape Town’sstrengths, whileacknowledging itsweaknesses.

• The long-term focus ison shared, export-linked, resource-efficienteconomic growth,supported by socialdevelopment.

74 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

Page 76: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 75

PLA

NN

ING

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

DIR

ECTO

RATE

SG

LOSS

ARY

PLA

NN

ING

The Integrated Transport Plan (ITP) is a statutoryrequirement in terms of the National Land Trans-port Act of 2009, and constitutes the statutory

transport sector plan – part of the Integrated Develop-ment Plan – in terms of the Systems Act of 2000.

Legislatively and in terms of the regulations, a trans-port plan must be prepared within a broader timelinecontext, but must have a five-year horizon, while theplan needs to be reviewed annually.

The ITP is the highest-level transport policy instru-ment and tool for the identification and prioritisation oftransport policies and programmes that will promotethe vision and goals of the City.

The ITP gives a summary of the current transport sit-uation, identifies specific needs, and assesses these interms of the strategic informants, with a view to identi-fying those projects that best address the overall needsof the City.

The result is an enabling plan and framework for thedevelopment and implementation of all transport-relat-ed plans and programmes, at both the overarching andthe modal or sectoral level.

The objective of the ITP is to provide a clear andcomprehensive record of the motivated policies andprogrammes of intervention to be taken by the City toachieve its vision for the future of Cape Town, andtransport in particular, taking cognisance of provincialand national policy.

The ITP focuses on achieving an integrated approachto all transportation planning in support of the Inte-grated Development Plan of the City, by seeking com-monality between the City’s transport vision, keythemes and transport strategies, and a ‘sustainabletransport’ triple bottom line approach.

Overview of contentThe content of the ITP comprises a cascading logic ofelements, as reflected in the national guidelines for thepreparation of a comprehensive integrated transportplan. The document includes:• an introduction, purpose and objectives;

• the transport vision, goals and strategies;• a transport register;• the context and relationship between the spatial

plans;• economic and environmental strategies;• public consultation inputs;• a city-wide needs assessment;• specific transport strategies (public transport, travel

demand management, freight logistics, asset man-agement and maintenance, and other strategies);

• the overall projects programme; and• the financial and budgetary framework.

Current statusAs per the formal categorisation and gazetting processby the Provincial MEC for Transport and Public Works,the City of Cape Town is a ‘Category A’ municipality interms of the National Land Transport Transition Act of2000 and the formal Transport Planning Authority,responsible for preparing a comprehensive integratedtransport plan.

The City ITP was approved by formal Council resolu-tion on 26 November 2009, and granted subsequentapproval by the MEC for Transport and Public Works on3 March 2010. The rail component of the ITP must beapproved by the National Department of Transport.

Next stepsIn compliance with, and in terms of, the respective reg-ulations, the present ITP is going through an annualtechnical review process.

This was a key requirement as stipulated by the MECfor Transport and Public Works, while this process isexpected to be concluded by June 2010.

Subsequent to that phase of the planning and prepa-ration process, the City will be engaging in a totalreview of the Integrated Transport Plan 2006-2011.

This will set the base and will follow through on thenext comprehensive ITP, based on current policy frame-works and imperatives, to work toward a reworked andreformulated plan, with particular focus areas.

Integrated Transport Plan

KEY CONCEPTS• The ITP is the highest-

level transport policyinstrument and tool forthe identification andprioritisation oftransport policies andprogrammes.

• The ITP focuses onachieving an integratedapproach to alltransportation planningin support of the City’sIDP.

• The ITP has a five-yearhorizon, and isreviewed annually.

• The ITP gives asummary of the currenttransport situation,identifies specific needs,and assesses these witha view to identifyingpotential projects thatbest address the overallneeds of the City.

Page 77: City of Cape Town   Council Overview

76 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

terms of the Land Use Planning Ordinance (LUPO) andby the Provincial Government (EMF component only) interms of the National Environmental Management Act(NEMA) by the end of 2011.

On completion, the city-wide SDF and the SDPs willinform the preparation of the annual IDP review aswell as the development of new IDPs.• A draft Densification Strategy has also been pre-

pared in support of the CTSDF strategies.• A draft Development Edges: Urban and Coastal

Edges Policy has also been prepared.The plans and policies of the SDF will:• indicate the areas best suited to urban development,

the areas that should be protected, and the areaswhere development may occur if it is sensitivelymanaged;

• provide investors with a clear idea of where theyshould invest;

• guide public investment in infrastructure and socialfacilities;

• be used to assess development applications submit-ted by property developers; and

• guide changes in land use rights.

The Cape Town Spatial Development Framework(CTSDF) was endorsed by Council on 30 March2011, and is being submitted to the Provincial

Government of the Western Cape for approval in termsof the Land Use Planning Ordinance (provincial plan-ning legislation).

The CTSDF will replace a number of outdated spatialplans and policies that have been used to inform landuse decisions to date. The CTSDF will guide the wayCape Town should grow in the future, and contains thefollowing three key strategies:• Planning for employment and improved access to

economic opportunities• Managing growth and creating a balance between

urban growth and environmental protection• Building an inclusive, integrated, vibrant cityIntegrated district-level spatial development plans

(SDPs) and environmental management frameworks(EMFs) are currently being finalised for Cape Town’seight functional planning districts, in line with, andinformed by, the city-wide SDF.

These plans will replace outdated regional plans, andare due for completion and approval by Council in

Cape Town Spatial Development Framework

KEY CONCEPTS• The CTSDF replaces

outdated spatial plansand policies.

• The CTSDF will guidethe way Cape Townshould grow.

• It indicates the areasbest suited to urbandevelopment, and theareas that should beprotected.

• It deals with matterssuch as densification,the urban edge, and theprotection of naturaland environmentalresources.

• The CTSDF has beensubmitted for approvalby Province.

Page 78: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 77

PLA

NN

ING

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

DIR

ECTO

RATE

SG

LOSS

ARY

PLA

NN

ING

The creation of Integrated Asset ManagementPlans (IAMPs) is a requirement of both NationalTreasury and the Department of Co-operative

Governance and Traditional Affairs. In some cases, suchas for electricity, water and sanitation services, it is alsoa requirement of the sector departments.

The primary goal of IAMPs is to optimise asset con-dition and the application of funds and resources bysystematically generating management information.

This information is used to decide when to acquire,repair, maintain and retire assets, in order to provideand sustain acceptable and affordable services. Thisprocess is known as full life-cycle asset management.

Infrastructure Asset Management ProjectAn Infrastructure Asset Management Project was initi-ated in 2008, after a decision to focus on the UtilityServices Directorate’s Electricity Services, Water & Sani-tation, and Solid Waste Management departments.

A key recommendation from the project was to focusadvanced asset management plans on high-risk assets(approximately 2% of total), which will require thedevelopment of detailed Level 3 plans. The remainderof assets could be managed using basic Level 1 plans.

The identified high-risk asset groups are:• the medium-voltage (MV) reticulation network and

infrastructure; • wastewater treatment plants; and • the Solid Waste compactor fleet. The project ended without being fully completed inFebruary 2010, when the budget was depleted. TheUtility Services Directorate, however, continued withthe data capture and database development, as well asthe development of first stage IAMPs.

Current statusAll Utility Services departments have prepared and for-malised first stage asset management plans (whichinclude replacement planning, i.e. capital works), andare using these to some degree for maintenance.

This includes plans for the high-risk asset groupsidentified by the departments and agreed to by theExecutive Management Team. These groups include the

City’s wastewater treatment plants, the Solid Wastecompactor fleet, and the medium-voltage assets.

Electricity Services has advanced beyond this stage,and has an integrated financial asset register and infra-structure asset register for the medium-voltage assetson the City’s SAP database system.

The SAP system is being developed to integrate dif-ferent modules which will eventually allow seamlessasset and financial maintenance.

The Roads Branch of the Transport, Roads & MajorProjects Directorate has a pavement management sys-tem that is being enhanced, but that needs to be inte-grated with SAP. Other departments in the Directorateare developing plans and generating data.

Proposed corporate IAMP processGiven the experience gained, it will be appropriate toextend the project to key departments where assetcosts are high and where there is a need to implementa formalised asset management approach.

The directorates that should be included are:• Housing (for rental stock);• Corporate Services (fleet and facilities management);• Property Management; and• Community Services (Sport & Recreation).Proposals for a corporate IAMP process have been putto the EMT. The report proposes a draft asset manage-ment strategy and roll-out plan with supporting poli-cies that will result in the generation and completionIAMPs for other Council departments as well.

This is a long-term process, considering that thereare more than 3 000 000 assets on the City’s books.

A Mayco strategic working group has been formed,to develop principles for finalising the strategy andplan for infrastructure and infrastructure developmentplanning, within the Medium-term Revenue and Expen-diture Framework.

Infrastructure development planning must be linkedto development priorities derived from the City Devel-opment Strategy and the Economic Development Strat-egy, as well as the multi-year projects for the creationof infrastructure, as identified in the sector plans orbusiness plans of the infrastructure departments.

Infrastructure Asset Management Plan

KEY CONCEPTS• The Integrated Asset

Management Planhelps to optimise themanagement and useof infrastructure andassets.

• An Infrastructure AssetManagement Projectwas started in 2008,and focused on UtilityServices.

• Asset groups identifiedas high-risk include themedium-voltagereticulation networkand infrastructure,wastewater treatmentplants, and the SolidWaste compactor fleet.

• Proposals for acorporate assetmanagement processhave been put to theExecutive ManagementTeam.

Page 79: City of Cape Town   Council Overview

Events have become an important feature of

Cape Town, and the City is in the process of

developing a Major Events Strategy. This builds

on the existing Events Policy and Events Bylaw, and is

shaped by extensive practical experience.

As a local government, the City of Cape Town stages

many events across the metro area whenever new or

upgraded facilities and infrastructure, such as water

works or community halls, are opened.

These highlight and showcase service delivery.

Events are also used to launch campaigns or initiatives

in communities. There also are ceremonial events such

as the awarding of civic honours.

International eventsCape Town has attracted some major international

events, with large crowds of spectators and huge tele-

vision viewerships. Cape Town was a most successful

host city for the 2010 FIFA World Cup, hosting eight

matches, including a semi-final.

A total of 507 000 spectators attended these match-

es at the new multi-purpose Cape Town Stadium;

580 000 people walked the “fan walk” from the central

city to the stadium; 560 000 watched the entertain-

ment and live screening at the Fan Fest on the Grand

Parade, while 206 000 watched live screenings of World

Cup matches at four public viewing facilities across the

metro area.Events such as these benefit the economy, as thou-

sands of spectators, participants and support staff

spend money on car rental, accommodation, goods,

services and shopping.Events create job opportunities for residents, volun-

teers, staging companies, informal traders, entertainers

and service providers. Events also create civic pride.

Major events can result in upgraded and new facili-

ties. Cape Town gained almost R13 billion in new and

upgraded infrastructure as a result of the World Cup.

These upgrades include the airport, Cape Town Station,

Hospital Bend and M5/Koeberg Road interchanges and,

of course, the new stadium.

There are several categories of events, such as sport

and outdoor events, arts, culture, heritage, entertain-

ment, community, endurance and adrenaline.

The convention marketCape Town has an array of built event venues, includ-

ing the Cape Town International Convention Centre,

which is capable of hosting up to 10 000 delegates and

is now set to double its capacity.

There are also sport venues for various sports – from

rugby, cricket and soccer, to ice hockey, cycling and

gymnastics. There are many unique outdoor settings for

events, including beaches, Kirstenbosch Botanical Gar-

dens, Signal Hill and the Grand Parade.

Cape Town has a proud track record of successfully

hosting large international events. The Two Oceans

marathon attracts over 20 000 runners, the Cape Argus

Pick n Pay cycle tour attracts over 30 000 competitors

and the Cape Town International Jazz Festival more

than 30 000 spectators.As a maritime city, Cape Town also attracts interna-

tional yacht racing (Cape to Rio, Volvo Ocean Racing).

In addition, World Cup events in rugby and cricket as

well as the Indian Premier League cricket and many

international rugby tests have been held in Cape Town.

Draft Events Strategy

KEY CONCEPTS• Events benefit the local

economy as thousandsof participants,spectators, and supportstaff spend money ongoods and services.

• Events create jobopportunities forresidents, volunteers,staging companies,informal traders,entertainers andservice providers.

• Cape Town has an arrayof built event venues,including the Cape TownInternationalConvention Centre(CTICC).

78 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

Page 80: City of Cape Town   Council Overview

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 79

PLA

NN

ING

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

DIR

ECTO

RATE

SG

LOSS

ARY

PLA

NN

ING

The Economic and Human Development Strategy(EDS) is a ten-year strategy that sets the direc-tion for the city’s economic development.

This direction is influenced by policies such as thenational New Growth Path (NGP), the City’s IntegratedDevelopment Plan (IDP), City Development Strategy(CDS) and Spatial Development Framework (SDF). TheEDS is also influenced by analytical research such asthe Global Competitiveness Study.

As the EDS is designed to give direction to the City’seconomic interventions, the strategy’s purpose is to: • align the City’s economic development goals, strate-

gies and policies with national and provincial goals,strategies and policies;

• provide a long-term vision of the desired state ofCape Town’s economy;

• provide stakeholders with a reference point for mak-ing long-term planning decisions;

• identify programmes that will allow Cape Town toachieve its economic vision; and

• prioritise and co-ordinate the allocation of resourcesto ensure that the programme’s targets are achieved.

The EDS focus The strategy is a technical, practical plan that outlineshow the Strategy and Planning Directorate will allocateits resources to create a vibrant, inclusive economy.Given this tactical-analytical approach, the Directorateanalysed the natural, built, economic and social environ-ment to identify interventions, such as the following:

Built environment• Make it simpler, faster, cheaper and safer for individ-

uals to move around the city by reforming thedesign of the transport system

• Campaign for a compact, mixed-use and publictransport-orientated city

• Promote densification to curb urban sprawl • Encourage access to affordable housing for the

urban poor in centrally located areas

Economic environment• Promote knowledge-based industries and value-

added manufacturing activities • Support the development of the informal sector as a

stepping stone into the formal economy • Encourage the development of community

economies in the city’s marginalised areas• Increase the city’s competitiveness by reducing the

cost of doing business• Work with business and academic institutions to

form innovation networks that package innovationinto commercial products

• Address factors that strengthen supply chains, valuechains and links between firms, paying particularattention to buyer-supplier relations, and knowledge

and learning capabilities

Social environment• Use innovative technologies to improve people’s

access to basic services • Draw on the City’s cultural diversity to create an

environment that promotes creativity and design • Influence the design of the Province’s education sys-

tem from Grade 0 to Grade 12 to foster entrepre-neurship at a young age, and work with stakeholdersto improve the quality of education offered in town-ship schools

• Collaborate with business and academic institutionsto turn knowledge into practical skills and businessacumen

Natural environment• Reduce the city’s energy-intensive nature • Encourage the growth of innovative green industries • Curb the degradation of the City’s natural assets

An overview of the EDS’s six objectives • Invest in Cape Town: Investment generates employ-

ment, encourages knowledge spill-overs, andincreases tax revenue. These factors contribute tobuilding productive capacity.

• Inclusive economies: Cape Town has huge persistentsocial and economic inequalities that keep a largesection of its population living in poverty. Economicinterventions are required to create opportunities foreveryone to participate in the economy.

• Foster entrepreneurship: The City of Cape Townshould encourage ‘opportunity-driven’ entrepreneursas a strategy to reduce unemployment.

• Develop a green economy: An erratic supply of ener-gy could derail economic development. This strategyaddresses the need to secure reliable energy, andexplores business opportunities in renewable energy.

• Support social cohesion: Reduce social fissures inCape Town, and also build new sources of cohesion,through increasing a sense of belonging, andstrengthening institutions that affect divisions, suchas income, employment and capabilities.

• Develop a compact city: Explores the effect that thecity’s spatial form has on economic growth. The city’scurrent spatial form produces a divided growth path,which is inefficient and unsustainable. One of thegoals of this strategy is to create a form that pro-motes the efficient and equitable flow of resources.

Next steps • A strategy workshop will be held with Mayco.• The EDS will be updated to reflect Mayco’s com-

ments.• The EDS will be presented to the appropriate com-

mittees for approval.

Draft Economic and Human Development Strategy

KEY CONCEPTS• The EDS is a ten-year

strategy that sets thedirection for the city’seconomic development.

• The EDS is influencedby national policies, theCity’s strategies, andthe results of research.

• It is a practical planthat outlines how theCity will allocateresources to create avibrant, inclusiveeconomy.

• It deals with matterssuch as transport,densification, affordablehousing, improvededucation, developmentof the informal sector,innovation networks,and more.

• The EDS seeks tomaximise Cape Town’seconomic strengths.

• A strategy workshopregarding the EDS willbe held with Mayco.

Page 81: City of Cape Town   Council Overview

80 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

Page 82: City of Cape Town   Council Overview

PLA

NN

ING

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

DIR

ECTO

RATE

SG

LOSS

ARY

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 81

Adjustment budget − The formal means by which amunicipality may revise its budget during a financialyear. Prescribed in Section 28 of the Municipal FinanceManagement Act.Allocations − Money received from Province andNational TreasuryBEE – Black economic empowerment. A system to givepreviously disadvantaged groups economic opportuni-ties. It includes measures such as employment equity,skills development, ownership, management, socio-eco-nomic development and preferential procurement.Budget − The City’s annual financial planBudget-related policy – Policy affecting, or affectedby, the budget. Examples include tariff policy, rates pol-icy, and credit control and debt policy.Budget Steering Committee – Committee estab-lished to provide technical assistance to the Mayor indischarging the responsibilities set out in Section 53 ofthe Municipal Finance Management ActCapital expenditure − Spending on assets such asland, buildings and infrastructure. Any capital expendi-ture must be reflected as an asset on a municipality’sbalance sheet.Cash flow statement − A statement showing whenactual cash will be received and spent by the City, andthe month-end balances of cash and short-term invest-ments.CBD – The central business districtCCTV – Closed-circuit televisionCID – A city improvement district. A defined area inwhich the majority of property owners determine andagree to fund supplementary and complementary serv-ices in addition to those normally provided by the City.CIDs are Section 21 companies (non-profit entities)managed by a member-elected board and operated bya board-appointed management team. Similar to spe-cial rating areas.CMTF – Cape Metropolitan Transport FundConvenco – The Cape Town Convention Centre Com-pany (Pty) Ltd. Owns the CTICC. The City of Cape Townhas a 50,2% shareholding. The other shareholders arethe Provincial Government and Sunwest International.CPI − Consumer price index. An index of the cost ofgoods and services to a typical customer, whichdescribes the rate of inflation.CPIX − Consumer price index, excluding mortgagecostsCRU – Community residential unitCTCHC – Cape Town Community Housing CompanyCTICC – Cape Town International Convention CentreDMTN – Domestic medium-term note, the City’smunicipal bond programme, which provides capitalfundingDORA − Division of Revenue Act, the legislation thatspecifies the annual allocations from National Govern-

ment authoritiesDORB − Division of Revenue Bill. Legislation tabled inParliament, but not yet enacted, which shows theannual allocations from National Government to localauthoritiesECD – Early childhood development. The formal teach-ing and care of young children by people other thantheir family,or in settings outside the home.EMT – The City’s Executive Management Team, com-prising the City Manager, the executive directors andChief Audit Executive. The EMT reports to the City Man-ager.EPWP – Expanded Public Works Programme. A Nation-al Government programme aimed at providing povertyrelief and skills transfer for unemployed personsthrough temporary work.Equitable share − A general grant paid to municipali-ties, predominantly aimed at assisting municipalitieswith covering the costs of free basic services.FBS – Free basic service. Provision of a defined supplyof electricity, water, sanitation and refuse removal at nocharge to the resident.FC&D – Finance charges and depreciation.GDFI − Gross domestic fixed investment. The value ofnew or existing fixed assets owned by the businesssector, governments and households.GFS − Government finance statistics. An internationallyrecognised classification system that facilitates compar-isons between municipalities.GIA – Grants-in-aid. Money granted by the City orother arms of government to a social or NGO pro-gramme.GV – General valuation. A general property valuation isconducted at least once every four years to ensure thatthe rates charged on properties are fair and reflect cur-rent values. This is a requirement in terms of the LocalGovernment: Municipal Property Rates Act of 2004.IBT – Inclining block tariff. A pricing structure for utilityservices, whereby the unit price increases above certainconsumption levels. A well-designed inclining block tar-iff reduces bills for low-use consumers, keeps billsunchanged for average-use consumers, and increasesbills for high-use consumers.IDP − The five-year Integrated Development Plan. TheCity’s main strategic planning document, which isrevised every year.IRT – Integrated rapid transit. The MyCiTi bus-basedpassenger transport system, which uses dedicated buslanes and is integrated with other transport and NMTsystems.IWM – Integrated waste managementKPI − Key performance indicators. Measures of serviceoutput and/or outcomes.LED – 1. Local economic development. 2. Light emit-ting diode, which is an energy-efficient, long-life light.

Glossary of terms

Page 83: City of Cape Town   Council Overview

82 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

Mayco − Mayoral CommitteeMFMA − Municipal Finance Management Act (Act No53 of 2003). The principal piece of legislation relatingto municipal financial management.MIG – Municipal infrastructure grant. Transfers fromNational Treasury and/or Province for the purpose ofbuilding infrastructure.MOA – Memorandum of agreementMPRA – Local Government: Municipal Property RatesAct (Act 6 of 2004)MTREF − Medium-term Revenue and ExpenditureFramework. The MTREF effectively represents a munici-pality’s medium-term financial plan. It is an annual,rolling, three-year expenditure plan that sets out antici-pated revenue and projected expenditure for the budg-et year, plus two outer financial years.MYPD – Multi-year price determination. System ofscheduled rate increases over a number of years, gener-ally for bulk services such as Eskom.NEMA – National Environmental Management ActNEMWA – National Environmental Management:Waste Act of 2008NERSA – National Energy Regulator of South Africa.Regulates the electricity, piped-gas and petroleumpipeline industries.NGO – A non-governmental organisationNMT – Non-motorised transport, such as cycle andpedestrian facilitiesNWMSI – National Waste Management Strategy imple-mentationOperating expenditure − Spending on the day-to-dayexpenses of a municipality such as general expenses,salaries and wages, and repairs and maintenanceOPM – Organisational performance managementPHDB – Provincial Housing Development BoardPHP – People’s Housing ProcessPPE – Property, plant and equipmentPPP – Public/private partnership. A government service

that is funded and operated through a partnership ofgovernment and one or more private-sector companiesPPU – Public Participation UnitProvince – The Provincial Government of the WesternCapePTI – public transport interchangePTIF – Public Transport Infrastructure FundRates − A local government tax based on assessed val-uation of a property. Also called property rates.R&M – repairs and maintenanceRSC – Regional Services CouncilSALGBC – South African Local Government BargainingCouncil. Forum for determining salaries and wages inthe local government sector.SCM – supply chain managementSDA – service delivery agreementSDBIP − Service Delivery Budget Implementation Plan.A detailed plan comprising quarterly performance tar-gets and monthly Budget estimates.SETA – Sectoral Education and Training AuthoritySFA – strategic focus area. The main priorities of theCity, as set out in the IDP. Budgeted spending mustcontribute towards achieving these strategic objectivesSMME – small, medium and micro-sized enterpriseSOHCO – Social Housing CompanySRA – special rating area; similar to CIDSubcouncils – administrative areas into which theCity’s metropolitan area is divided, each of which ismade up of a number of wards. There are a total of 110wards, each of which is represented by a councillor. Award, in turn, is made up of a number of suburbs.TMA − Total Municipal AccountUISP – Upgrade of Informal Settlements ProgrammeVirement – the process of reallocating money withinvarious subdivisions of a voteVote – one of the main segments into which a budgetis divided, usually at directorate levelWDV – written-down value

Page 84: City of Cape Town   Council Overview

PLA

NN

ING

CITY OF CAPE TOWN COUNCIL OVERVIEW 2011 83

OVE

RVIE

WST

RUCT

URE

FIN

AN

CEG

OVE

RNA

NCE

DIR

ECTO

RATE

SG

LOSS

ARY

Page 85: City of Cape Town   Council Overview

84 CITY OF CAPE TOWN COUNCIL OVERVIEW 2011

Page 86: City of Cape Town   Council Overview

Recommended