1. Presentation to President Thabo Mbeki Western Cape Provincial Imbizo 2007 Helen Zille Executive Mayor of Cape Town 22 July 2007

2. Contents 1Background 2Local Government Responsibilities 3Organisational Stability 4Performance Review – Management Efficiency 5IDP – Infrastructure Led Economic Growth 6Local Economic Development 7Housing and Basic Services 8Key Programmes and Projects 92010 Soccer World Cup 10Good Governance 11Blockages 12Conclusion

3. Background and context of this report December 2005Municipal Imbizo 1 March 2006New Multi-Party Coalition Government March 2006 to PresentInternal Focus on Organisational Stability IDP Focus on Infrastructure Led Economic Growth July 2007Provincial Imbizo

4. Local Government’s Core Mandate

5. Local Government Responsibilities Constitution LocalProvinceNational The core functions that Local Government must perform are set out in the following documents: ­ Chapter 7, ss156 of the Constitution - Powers and Functions of Municipalities ­ Part B of Schedules 4 and 5 of the Constitution ­ Local Government Legislation ­ IGR Framework Act Local Government is also guided by: ­ White Papers ­ Programmes of Action

6. 1 March 2006 New Government Elected

7. Initial Focus on Organisational Stability Legacy of 7 municipalities not properly realigned into 1 following formation of Unicity in 2000 City initiated Organisational Realignment Project ­ Executive Management Team aligned with Mayco portfolio structure ­ Placement of 21 500 employees into 1 realigned organisational structure with basic parity based on benchmark grades, salary scale & conditions of service ­ Reversing exodus of skills by proactively filling critical vacancies – So far 1800 new appointments made, 1200 to follow in year ahead Focus for next 3 years ­ to become internally efficient, to improve service delivery and to streamline transactions with customers (businesses and general public)

8. Performance Review

9. Performance Review - Overview Improved Balance SheetRecent Credit Rating upgrade: from A+long term / A1 short term to AA- long term / A1+ short term – the highest in South Africa next to Ekurhuleni Extensive debt management campaign has reduced outstanding debt owed to the City by R417 million Improved Operational Management Improved capital expenditure in 2006/07 highest so far in Unicity ( 77%) 2010 stadium will be substantially complete by end of 2009 Procurement time reduced from 14 weeks to 8 weeks Improved Services to the Poor Establishment of Indigent Register (budget for free basic services over R400million) 100% rebates on rates to those registered as indigent and over 100,000 properties valued under R88,000. R1,5 billion debt written off, mostly to the poor Improved Perception Rating for Cape Town Rated No. 1 Long-Haul Conference Destination in UK’s Meetings, Incentives, Conferences and Events international survey Rated No. 1 City in Middle East/Africa Region and No.10 globally by US Travel & Leisure Magazine

10. IDP focus: Infrastructure Led Economic Growth Core objective is to increase public investment in municipal infrastructure and services to lead economic growth and job creation City implemented above-inflation increase in rates and service charges for new infrastructure and to address service delivery backlogs, especially in sewerage, electricity and transport infrastructure Sustained under-investment in key infrastructure needs to be corrected Capital budget therefore increased from R2.5bn (2006/2007) to R4bn (2007/2008) Operating Budget increased to ensure City has capacity to spend capital budget (especially to fund maintenance and filling of critical vacancies)

11. Local Economic Development Improve access to ICT by establishing Municipal Broadband Network (R400m business plan currently under discussion) Already established 4 Digital Business Centres to extend small business access to IT and Web (Mitchells Plain, Khayelitsha, Gugulethu and Langa) Improve SMME access to finance through Business Place; joint public/private sector initiative (including Investec, Umsobomvu Youth Fund) with R2,1m loan funding granted in last 12 months Continued focus on internal efficiency, reducing transaction turnaround time and reducing red tape (guided by WESGRO’s investment constraints review) Build partnerships in Tourism to create labour intensive economic opportunities

12. Housing and Basic Services Housing backlog in city: housing database currently contains around 400 000 applicants With limited resources in context of massive scale of need, our focus is on provision of basic services and an incremental approach to housing provision City accelerated provision of housing opportunities – 2003/04 - 1 808 housing opportunities 2004/05 - 3 469 housing opportunities 2005/06 - 4 585 housing opportunities 2006/07 - 7 530 housing opportunities Informal Settlements Master Plan sets out framework for provision of services & upgrading of all 226 informal settlements around City. Completion of phase 1(essential services) within 2 years. Rate of housing delivery constrained by: ­ Land shortage for housing: 8,750 hectares required ­ Delays in Housing Accreditation for Cape Town ­ EIA, TIA and other legislative processes – It currently takes between 18 to 24 months to release land before a housing project can start

13. Key Programmes & Projects Presidential Urban Renewal Programme: - Continued progress on key anchor projects as well as the eight projects being implemented as part of Project Consolidate - Funding issues with regard to certain projects (e.g. Budgeted funds late or not yet available for Lentegeur Public Transport Interchange & Station Upgrade) Expanded Public Works Programme (EPWP): - Well established and mainstreamed, 10 817 jobs created to date - City’s draft policy to guide employment of people from community within EPWP presently being debated in Committee system of Council - policy became necessary to counter irregularities arising from patronage in selection of workers

14. 2010 Soccer World Cup 2010 stadium will be substantially complete by end of 2009 Critical risk: ­ exposure to excessive price increases from construction industry with serious capacity problems ­ demanding timelines are being closely managed 2010 Joint Host City Transport Plan in being implemented As part of World Cup: ­ Green Point common area is being redeveloped into consolidated sports precinct & urban park ­ 23 public viewing spaces being established (one in each sub-council)

15. Good Governance Provincial Imbizo & IDP Workshops: Various Provincial Imbizo & IDP Public-, Sub- Council- & Ward workshops held for public to identify their local & metropolitan priorities -Problem: Need for better coordination between City and Province as times/programmes of the Provincial Imbizo process clashed with City’s IDP public participation Ward Forums: City is implementing ward forums to facilitate participation by local communities. In this regard, the City is exercising its discretion as granted by Section 72 of the Municipal Structures Act Strengthening of Institutions: CTRU, Wesgro and other agencies to improve governance. Performance review of CTRU showed failure to meet required standards. Engagement between City and CTRU is ongoing.

16. Critical Challenges

17. Blockages Housing - biggest constraint is access to well-located land for incremental housing development – will be facilitated by: ­ Making available state-owned land for affordable housing (e.g. Culemborg, Youngsfield, Ysterplaat) ­ Provision of funding by Dept of Land Affairs will assist acquisition of land for housing. City has not had response to repeated requests in this regard. Housing - delay in granting City Phase 1 of housing accreditation is limiting capacity to accelerate housing delivery (backlog of approximately 400 000 grows by 16,000 per year – we must therefore create over 16,000 opportunities per year to reduce backlog) Housing - Development & investment will be facilitated by reducing ‘red tape’ with respect to planning legislation & EIA / housing subsidy applications

18. Blockages (continued) Budget - implementation of projects and expenditure of budget can be improved through: ­ better alignment of planning & budgeting processes of all spheres, including SOEs ­ speedier transfer of funding ­ review of supply chain management regulations ­ Issue of unfunded mandates critical & requires urgent resolution by Provincial & National Government Electricity – Problems around electricity provision by ESKOM – delays in electricity provision in Eskom supply areas Safety and Security – Important that organisational structures set out in National Drug Master Plan adhered to by Province and City so that roles / responsibilities within spheres of government are clearly defined and two spheres can co-ordinate

19. Conclusion City made substantial progress to ensure that foundations of service delivery are firmly in place Focus in terms of 2007/08 IDP & Budget is on infrastructure-led economic growth for job creation Room for improvement of co-operative governance – in many areas our role as local government would be greatly facilitated through better coordination between spheres of government City is committed to intergovernmental processes within its constitutional mandate

20. Enkosi Thank you Dankie