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The City of Cape Towns Role in Creating a Better Life for All

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The City of Cape Towns Role in Creating a Better Life for All Powered By Docstoc
					5 year plan (IDP) for the City
     Mayco Workshop




         Date: 15.02.07
General comments


 Executive Summary introduction to be reviewed
 Provision to be made for Executive Mayor and City Manager
 introductions
 Numbering on objectives went haywire, to be corrected;
 Objectives to be reviewed and repackaged in line with the final
 corporate scorecard;
 Prioritization categorization still to be done;
 Compliance documentation still to be completed.
The City’s long term vision


 The vision of the political leadership elected in March 2006 is that
 Cape Town will:
     be a prosperous city in which City Government will create an enabling
     environment for shared growth and economic development;
     become a city known for its effective and equitable service delivery; and
     distinguish itself as a well governed and efficiently run administration.
 In order to achieve this vision, the City should:
     actively contribute to the development of its human and social capital;
     offer high quality services to all who live in it, transact here and visit it as
     tourists or holiday makers;
     be known for its efficiency, effectiveness and clean and caring
     government.
Alignment with Provincial and National
Government
 Accelerated and Shared Growth-South Africa (ASGI-SA): State-led investment plan that with SOEs,
 strategic partnerships and all spheres of government. Emphasis on high impact state-led projects.
 National Spatial Development Perspective (NSDP):- Advocate capital investment in areas of growth
 potential (Metropolitan economic centres), emphasis on providing basic services and access to
 social services and human resource development in areas of need and less potential.
 Provincial Growth and Development Strategy (PGDS):- Focus on strengthening growth sectors,
 resource management and implementation strategies. Key pillars: growth, equity, empowerment
 and environmental integrity.
 The Provincial Spatial Development Framework (PSDF): Address urbanisation pressures on natural
 resources and economic and social divisions within cities and towns. Provide policy context for
 urban development and environmental resource protection.
 The Intergovernmental Development Agenda for Cape Town: Shared and sustainable growth and
 development in the functional region. Three critical outcomes have been identified by the National,
 Provincial, City and District representatives involved in the intergovernmental task team:
       A Shared Prosperity - 6% average GGP growth per annum to 2014, 50% reduction in
       unemployment and poverty.
       An Inclusive and Equitable Society - 50% improvement in the Access Index (incorporating
       proximity to service centres, public transport, education, health and recreation facilities and
       the upgrading of informal settlements), 50% improvement in the Integration Index (which
       includes settlement and economic activity patterns, black economic empowerment and
       gender) and 50% increase in the Skills Index (which incorporates pre-school, school and
       post-school learning performances)
       An Ecologically Sustainable future - No increase in the per capita ecological footprint.
Positioning the City in the global, national
and provincial arena


  Strategically position itself nationally and internationally,
  and meet the needs of all its citizens,
  address its development challenges in a coherent way,
  recognise our larger responsibility to fulfil


as a globally relevant city in the growth and development of the African
  continent
The 5 Principles Informing the Spatial
Framework and District Plans




1.   Consolidate, protect and improve access to natural resources
2.   Promote an equitable pattern of access
3.   Sustainable and accessible economic opportunities
4.   Settlement – An integrated development path
5.   Create more great people places
2   State of the City: A brief summary
Economic conditions


                                    Comparison of level of unemployment and GGP growth in Cape Town




● Jobless growth,                       35                                                                                   140.0

● High unemployment                     30                                                       102.3
                                                                                                           108.0
                                                                                                                   112.5
                                                                                                                             120.0
                                                                                          98.4
(13% in 1997, almost                                                90.3
                                                                            94.5
                                        25           82.4   86.1                                                             100.0
23% in 2004, and 20,                         82.3
                                                                                                               23.4
                                                                                                    23.8              20.7
7% in 2005) and a                       20                                                                                   80.0
                        % unempoyment




                                                                                                                                     GGP (R billions)
                                                                                   19.7
                                                                       18                    19.8

● Mismatch between                      15
                                                       15
                                                             16.5
                                                                                                                             60.0

available skills and                    10    13.3                                                                           40.0
those that are needed                   5                                                                                    20.0
by    the    economy
                                        0                                                                                    0.0
remain in the city.
                                             1997 1998      1999 2000       2001 2002 2003                 2004 2005

                          Source:- Strategic Development Information & GIS using Quantec and STATSSA Labour Force Survey data
Infrastructure and Services
City of Cape Town                                            1996           2001          2004           2005
Demography
Number of Households                                       651 972        759 765                      845 000
Population                                                   2 563         2 893                        3 239    Investment into public
                                                              095           251                          768     infrastructure such as
Refuse Removal                                                                                                   public     transport   and
                                                                                                                 investment into bulk
% of households out without weekly refuse                                                 2.0%           3.6%    services systems has
                                                            10.2%          5.8%
removal                                                                                                          lagged behind advances
                                                                                                                 made in the extention of
Number of households without weekly refuse
                                                            65 882        45 031                                 basic      services    and
removal
                                                                                                                 housing        and      the
Water Supply                                                                                                     replacement,
                                                                                                                 rehabilitation         and
% of households without piped water on site                 10.2%          15.6%          6.0%           7.4%
                                                                                                                 preventative maintenance
Number of households without piped water on                                                                      of existing infrastructure
                                                            66 133        121 258
site                                                                                                             has suffered as a result of
                                                                                                                 the persistent focus on the
Toilet Facilities
                                                                                                                 (often reactive) extension
% of households without flush toilet                        10.4%          12.5%          9.7%           9.9%    of infrastructure at the
                                                                                                                 cost of maintenance.
Number of households without flush toilet                   67 785        96 799
Electricity Supply
% of households without electricity supply                  12.8%          11.2%          3.0%           4.7%
Number of households without electricity
                                                            82 928        87 024
supply
       Source: Strategic Development Information & GIS using STATSSA Census and General Household Survey data
Housing and shelter conditions

                                                                               Housing backlog compared to housing delivery
 The number of people
                                                                 350000                                                       350000
 living    in   informal
 settlements is growing                                          300000                                           300000      300000
 (23 000 families in                                                                        245000            265000
                                                                                   240000                265000
                                                                 250000                                                       250000
 1993 to 115 000
                                       Housing backlog (no. of
                                                                                               245000 245000

                                             dwelling units)
 families in 2005),                                              200000
                                                                               221000
                                                                                                                              200000




                                                                                                                                       housing delivery
 overcrowding         is
                                                                 150000   150000                                              150000
 increasing and
                                                                 100000                                                       100000

 household size is              50000                                                                                         50000
 declining.      These                                     4110 9729 1808 3469
                                      0                                                                                       0
 contribute   to    an                    1998 1999 2000 20012002 2003 2004 2005 2006 2007 2008 2009 2010
 increasing    housing
                       Source: Strategic Development Information & GIS using Housing Department data
 backlog (150 000 in
 1998 to approximately
 300 000 in 2006).
Safety and Security conditions


 Improving              situation                              Murder rate per 100 000

 (reduced      murder        and    100
                                                                86
 business crime),                   80
                                               77


 murders still high with 1856                                                   60
                                                                                                 55
                                                                                                            57
                                    60
 murders        in       2005/6,
 representing an annual             40

 murder rate of 57 per 100          20
 000 population (5 per day).
                                     0
 Drug related crime has                   2001/2002        2002/2003       2003/2004        2004/2005    2005/2006
 almost tripled in the past
 five years.                          Source: Strategic Development Information & GIS using SAPS data
                                                         Drug re late d crim e pe r 100 000
 Property     related      crime    700
 (especially          residential   600
                                                                                                           616



 burglaries)       has       also   500
                                                                                               482



 increased           (Reflecting    400
                                                                               314

 possible           connection      300       241              232


 between drugs and property         200

 crime.)                            100

                                     0
                                          2001/2002       2002/2003        2003/2004       2004/2005    2005/2006
Health, Social and Human conditions

                                         Poverty Level                                                                                                                                                       38%
 Trend towards rising poverty (from      40%
                                         35%                                                                                                     32%
 25% in 1996 to 38% of households        30%
                                                                                25%
 living below or marginally above        25%
                                         20%
 the household poverty line in           15%
 2005).                                  10%
                                          5%
 Rise in incidence of HIV                 0%
                                                                              1996                                                            2001                                                         2005
 prevalence.
                                        HIV Prevalence (%) by Health District                                                                                                              2001               2002               2003
 Increasing HIV prevalence among                                                                                                                                                           2004               2005

                                        35
 women visiting public health clinics                                                                             32.5

                                                                                                                                                                                                                         30.2
                                        30                                                                                                29.1


 (from 1,2% in 1994 to 15% in           25

 2005).                                 20
                                                    17.7
                                                                                                                                                          16.2                                             15.7
                                                                                                                                                                                   15.2          15
                                        15                                                        12.8                                                                12.4
                                                                                   11.5

                                        10
                                                                        7.3

                                            Source: Strategic Development Information & GIS using STATSSA
                                                                          5.1
                                          5
                                            Census and General Household Survey data
                                          0
                                               Athlone




                                                                                                                         Mitchells
                                                                              Central




                                                                                                         Khayelitsha




                                                                                                                                     Nyanga




                                                                                                                                                                 Peninsula




                                                                                                                                                                                                      Cape Town
                                                           Blaauwberg




                                                                                          Helderberg




                                                                                                                                                                                                                  South Africa
                                                                                                                                                  Oostenberg




                                                                                                                                                                             Tygerberg


                                                                                                                                                                                          Tygerberg
                                                                                                                          Plain




                                                                                                                                                                   South




                                                                                                                                                                                                        (Total)
                                                                                                                                                                                            West




                                                                                                                                                                                                                    (Total)
                                                                                                                                                                               East
Public Needs


 Public workshops were
 held as part of a National       30                      26
 Imbizo, and                      25
 Sub-Council workshops            20                              17
 were      held       where       15               11                            12
                                                                                           10
 members of the public            10                                       8
                                           6                                                    5
 could vote for priorities in      5   2                                                            3
 their community.                  0
  Housing      and     job




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 important priorities.




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                                               Source:- IDP Office Summary. January 2007
                                                            Goals:
Aim is to achieve the national                         A prosperous city
target of a 6-8% growth in the                  Effective and equitable service
Gross Geographical Product                                  delivery
                                                A well governed and efficiently
of Cape Town
                                                       run administration
Strengthening the important
pillars of urban efficiency (all
the required infrastructure
and resources in place) and                     5 YEAR PLAN FOR THE CITY

Institutional effectiveness (all                • Shared economic growth and
public and private institutions                 • development
                                                •Sustainable Urban Infrastructure
providing      effective    and                 and
efficient services and                            Services
                                                •Public Transport Systems
constructively   contributing                   •Integrated Human Settlements
                                    Urban       •Safety and Security                 Institutional
towards the growth and
                                                •Health, Social and Human Capital
development of the City).          Efficiency                                       Effectiveness
                                                  Development
                                                •Good Governance and Regulatory
                                                  reform
Strategy – Budget relationship

 Realities and                Visionary
  Challenges                 Framework


                             7 Strategic
                             Focus Areas


                 Strategic                  Prioritisation
                 Choices
                               Objectives              Programmes
            City
         Scorecard
    Directorate                  KPI’s                       Projects   Funding
    Scorecards                                                          Regime
Departmental                     Targets
                                                             Budgets
 Scorecards
Key Strategic Focus Areas
Strategic Focus Area 1: Shared Economic Growth
and Development

OBJECTIVES
   Corporate Objective 1.1 :- Develop new and strengthen existing partnerships to meet the City’s
   strategic objectives focussing in particular on new direct investment and tourism.
   Corporate Objective 1.2:- Develop and implement low complexity and high impact Local Area
   Development (LED) initiatives
   Corporate Objective1.3:- Strengthen the City’s tourism capability and events management
   calendar 365 days a year.
   Corporate Objective 1.4:- Develop and grow SMME opportunities through 2010, Supply Chain
   Management processes and events to encourage SMME development.
   Corporate Objective 1.5 :- Direct investment in strategic infrastructure where economic benefits
   are demonstrated..
   Corporate Objective 1.6:- Proactively support the formal business environment.
   Corporate Objective 1.7:- Develop skills to support the growing sectoral economy and access to
   opportunities. Prioritise skills development based on the needs of the local economy to support
   continued economic growth and access to opportunities.
   Corporate Objective 1.8:- Develop policy to encourage economic growth, job creation and
   broader participation.
   Corporate Objective 1.9:- Support the expansion and development of established Businesses to
   strengthen the city’s economic base and competitiveness.
   Corporate Objective 1.10:- Support an enabling environment for the development of
   opportunities.
   Corporate Objective 1.11:- Hosting of the FIFA 2010 World Cup in the City of Cape Town in
   accordance with FIFA’s requirements and the City’s developmental objectives
Strategic Focus Area 2: Sustainable Urban
Infrastructure and Services

Key Objectives:-
  Corporate Objective 2.1:- Reduce service backlogs for infrastructure-related services
  in accordance with national objectives for basic services.
  Corporate Objective 2.2:- Develop an integrated programme approach to
  infrastructure and service planning and budgeting.
  Corporate Objective 2.3:- Develop demand management programmes for water,
  electricity, waste and transport and reduce attendant pollutants.
  Corporate Objective 2.4:- Conserve biodiversity and improve quality living
  environments through greening, education and access
  Corporate Objective 2.5:- Develop and maintain zoned public open spaces, beaches
  and resorts.
  Corporate Objective 2.6: -Prioritise essential large or bulk infrastructure programmes.
  Corporate Objective 2.7:- Reduce impact of flooding on community livelihoods and
  regional economies
  Corporate Objective 2.8:- Safeguard human health, protect natural aquatic
  environments, and improve and maintain recreational water quality.
  Corporate Objective 2.9:-. Develop a short, medium and long term burial facility plan
  towards the creation of dignified public spaces.
Strategic Focus Area 3:
Public Transport Systems

 Key Objectives:-
    Corporate Objective 3.1:- Improve public transport services and secure
    new investment in infrastructure
    Corporate Objective 3.2:-Promote use of public transport. Create a
    unified road-based public transport system utilising the optimum mode
    for a particular route/corridor. Promote use of public transport to access
    all facilities and services and reduce the need to use private cars.
    Corporate Objective 3.3:- Reduce the demand for travel and create
    conditions for all day public transport services.
    Corporate Objective 3.4:- Integrate Land Use and Transport
    Corporate Objective 3.5 Ensure that freight moves efficiently and safely
    within the City
    Corporate Objective 3.6:- Develop and implement a transport asset
    management plan for the City
Strategic Focus Area 4:
Integrated Human Settlements

Key Objectives:-
  Corporate Objective 4.5: Development of new housing opportunities.
      Corporate Objective 4.4: Development and Implementation of a incremental
      housing programme.
      Corporate Objective 4.6: Increase rental stock through social housing
      partnerships
      Corporate Objective 4.7: Redress land ownership inequities by providing
      Housing based on Restitution claim settlements.
      Corporate Objective 4.8: Facilitate gap housing programmes through
      partnerships with Banks and private sector developers.
  Corporate Objective 4.1: Transform dormitory suburbs into areas
  which support a greater mix of land uses, offer a range of amenities
  and are socially mixed facilities
  Corporate Objective 4.2: Put in place policy and spatial planning
  frameworks that will facilitate the development of integrated human
  settlements.
  Corporate Objective 4.3: Provide and maintain minimum level of service for
  all categories of libraries and community facilities.
Strategic Focus Area 5:
Safety and Security

 Key Objectives:-
     Corporate Objective 5.1 Community and youth programmes directed at
     reducing crime and lawlessness.
     Corporate Objective 5.2:- Improve urban design to reduce crime and
     emergencies.
     Corporate Objective 5.3 The on- ongoing expansion of the CCTV
     network covering key economic and transport locations as well as crime
     hot spot areas.
     Corporate Objective 5.4 Improve law enforcement (traffic policing,
     licencing services and general law enforcement) through more visible
     actions.
     Corporate Objective 5.5 Develop of disaster risk assessment and pro-
     active disaster prevention and response plans.
     Corporate Objective 5.6 Fast, efficient and equitable emergency
     response to safeguard life, property, the environment and livelihoods.
Strategic Focus Area 6:
Health, Social and Human Capital Development

 Key Objectives:-
     Corporate Objective 6.1 :- Maximising social cohesion and minimising
     social exclusion.
     Corporate Objective 6.2 :- Enabling vulnerable groups (Youth and Children,
     Women,and Disabled) to enter the mainstream.
     Corporate Objective 6.3:- Supporting communities towards the eradication of
     extreme poverty amongst those excluded from the formal and informal economy
     Corporate Objective 6.4 :- Skills and capacity development to enable
     individuals, groups and communities to actively engage and benefit from
     developmental interventions (infrastructural, economic or social) check
     Corporate Objective 6.5 :- Use of the City’s community facilities as hubs for
     economic development and social capital. (Youth, women empowerment and
     early childhood development.
     Corporate Objective 6.6 :- Provision of effective environmental health services
     including Air Quality Management and Pollution Control programmes (Including
     noise pollution).
     Corporate Objective 6.7:- Provision of effective primary health care services in
     close collaboration with Provincial Health Services with a special emphasis on
     maternal and child health care and HIV/AIDS/STI and TB control.
Strategic Focus Area 7:
Good Governance and Regulatory Reform

 Key Objectives:-
     Corporate Objective 7.1:- Optimise the development of our Organisation staff
     and promote skills development.
     Corporate Objective 7.2:- Enhance service delivery through exploring alternative
     service delivery mechanisms.
     Corporate Objective 7.3:- Strategically utilise information technology to support
     the transformation of public services to provide better and more efficient
     government.
     Corporate Objective 7.4: Improve the service culture and workplace ethics by
     accomplishing sound financial governance, improved accountability and
     transparency.
     Corporate Objective 7.5:- Management of key financial areas such as income
     control, cash flow, indigent support, alternative income opportunities, asset
     management and risk management
     Corporate Objective 7.6:- Improve the regulatory environment (Bureaucratic red
     tape).


 Note: no objective re intergovernmental linkages etc ?
4. Financial Strategy
The key challenges that will need to be
the focus of City resources include



 Rising levels of unemployment and the need to create substantial
 opportunities for job creation;
 In-migration of people from other areas of South Africa, but also
 outward migration of scare skills;
 Social and economic development along major corridors such as the
 N2 and Klipfontein;
 Preparing the City and its facilities for the 2010 Soccer World Cup;
 Infrastructure backlogs that are inhibiting economic growth.
Financial Strategies


 Reducing salary costs to acceptable levels, taking into account the City’s new
 operating model and transferring savings to improve asset maintenance
 levels;
 Reducing the cost of servicing long-term debt by creative methods of
 borrowing and capital financing;
 Reducing the dependency on cross-subsidisation from tariff-based services
 to within acceptable norms;
 Maintaining rate and tariff adjustments within national norms and guidelines,
 ensuring the national and local economy are not undermined;
 Making adequate provision for free basic services for the poor, to ensure that
 there is no further marginalisation of poorer communities or individuals
 through the entrenchment of the Indigent Policy;
 Preparing realistic income budgets with adequate provision for non-recovery
 to ensure the expenditure reflected for each year can be fully covered by
 cash receipts;
 Ensuring that adequate cash reserves are maintained to cover legislated
 funds and provisions.
Medium-term budget projections –
MTIEF

In accordance with the City’s financial plan, the MTIEF has been
  reviewed to determine the income envelope and affordability level for
  the 2007/08, 2008/09 and 2009/10 financial years, noting that these
  outer years are indicative at this stage.
These projections were based on:
  Anticipated CPIX of 5.1% for outer years;
  Expected growth in the City’s economic and income base, generally
  in the range of 2% - 4%;
  Projected staff costs;
  Realistic target income collection rates for municipal services;
  Growth in repairs and maintenance expenditure;
  Affordable and sustainable rates and tariffs; and
  Capital expenditure programmes and their impact on revenue
Capital budget


The City can          High Level      Capital   Budget   2007/08      2008/0      2009/1
realistically       Summary                                             9           0
afford        and                                        Indicative   Indicativ   Indicativ
                                                          Budget      e Budget    e Budget
sustain a capital
spend of            Funding Sources                        Rm           Rm

 R881m
                    External Financing Fund (EFF)              881        824         824
(2007/08),
                    Capital Replacement Reserve (CRR)          411        336         336
R824m
                    Capital Grants and Donations (CGD)         822        494         494
(2008/09) and
                    Revenue                                       0          0           0
R824m
                    Revenue – Insurance                           7          0           0
(2009/10).
                    TOTAL                                   2 121       1 654       1 654
Operating Budget - Revenue
High Level Operating Budget Summary –    2007/08      2008/09        2009/10
   INCOME
                                        Indicativet   Indicative   Indicative


Funding Sources                            Rm           Rm             Rm
Rates                                         2 837        3 010         3 194
User Charges                                  5 695        6 175         6 732
Rent                                            236          248            261
Interest Earned                                 371          387            422
Fines                                           176          185            195
Other Income                                    339          351            362
Grants and Subsidies                          2 726        2 622         2 730
Internal Billing                              2 412        2 534         2 748
Accumulated surplus                             143          142            136
TOTAL                                       14 935        15 654        16 780
Operating Budget - Expenditure



         High Level Operating Budget Summary -        2007/08     2008/09      2009/10
         EXPENDITURE
                                                      Indicativ   Indicative   Indicative
                                                      e Budget     Budget       Budget
         Expenditure Category                           Rm          Rm           Rm
         Salaries, Wages and Allowances                  3 665        3 924        4 192
         General Expenses & Other                        3 779        4 006        4 244
         Indigent Relief                                   234          246          259
         Bulk purchases                                  2 185        2 402        2 655
         Financing Costs                                 1 273        1 517        1 645
         Insurance Claims                                    82          87           92
         Repairs and Maintenance                           621          665          712
         Appropriations                                    542          122           74
         Activity Based Costs and Internal Billings      2 554        2 685        2 907
         TOTAL                                          14 935       15 654       16 780
5. Prioritising the allocation of resources
5. Prioritising the
allocation of resources


1. Strong impact          0                  +             ++
    on growth             C1                 B1            A1

   2. Support               -                0             +
economic growth            C2                B2            A2

  3. Neutral to           --                  -             0
economic growth           C3                 B3            A3

                     C. Discretionary                   A. Basics re
                                          B. Support
                   (Non-Constitutional)                Constitutional
                                           Services
                                                        Obligations
Prioritisation


 an optimal return in terms of shared and sustainable growth, aimed at
 achieving the 6 to 8% GGP growth targets for the City;
 institutional stability;
 enabling the City to provide basic and enhanced services effectively
 and efficiently;
 redressing of backlogs in a focussed and structured manner,
 enable the City to leverage maximum business activity (commercial
 and industrial) that will support shared growth, with the eventual aim
 to
 reduce poverty and inequality and a better life for all.
6. Development directions over the next 5
                 years
6. Development directions



 Spatial alignment of public and private investment
 2010 FIFA World Cup
 Economic development opportunities
 Residential densification
 Urban renewal
Recommendations to Mayco


Mayco to


•   comment on the framework, layout and content of the draft IDP
    document


    to enable the IDP office to refine and finalise the draft for formal
    submission to portfolio committees, Mayco and Council;
Action Sheet


Item     Activity   By Whom   By When
Action Sheet


Item     Activity   By Whom   By When

				
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