Cape Town 2007 – 2012
Five Year Plan
Message from the Mayor
To all the citizens of Cape Town
Every five years, every municipal council must formulate
a five year development plan that sets out its strategic
objectives and informs its budget.
The City of Cape Town, has for the past seven months,
been engaged in a process of planning and consultation
to develop such a plan – known in terms of the law as the
Integrated Development Plan (IDP). We are continuing this
consultation.
The IDP can sometimes be so broad that it becomes meaningless. However, in this instance, there are three objectives
that stand out above all others:
• to provide decent municipal services to all, including
clean water, sewerage, electricity and refuse removal;
• to build an efficient administration with the capacity
to deliver these services and to maintain and further
expand municipal infrastructure; and
• to provide the right environment for the economy of
Cape Town to grow.
Our pledge to you involves getting these three things right.
To achieve them we will need to raise the quality of work
of the administration and hold individuals accountable for
the work they have undertaken to do.
We will also need to step up investment in infrastructure
significantly and invest adequately in the services needed
for Cape Town’s future.
For the past decade, there has been an underinvestment
in both new infrastructure, as the City has grown, and
in replacement, repairs and maintenance of our existing
assets. If we continue with this approach we will run into
one crisis after another. Our sewerage infrastructure, which
is already stretched, will be overwhelmed; our electricity
distribution will fail; our housing projects will remain nothing but blueprints; and our roads will go from congestion
to gridlock.
Investment in services and in repairs and maintenance is an
urgent priority. Good public services are also essential to attracting the investment we need to get the City growing.
These priorities are reflected in the budget published inside
this newsletter. You have the opportunity to comment on
both the budget and the five year plan in public hearings
and at sub-council level.
I hope you will do so.
Helen Zille
Executive Mayor
Cape Town 2007 – 2012
«
The focus areas of
the 5 year plan
Economic Growth
Municipal services
Economic growth and the creation of jobs are what the
people of Cape Town need most. The City will strive to
provide the best environment for the economy to grow.
It is the City’s prime responsibility to provide services to
residents, including water, sewerage, waste disposal and
electricity. A small percentage of the City’s growing population does not have access to basic services.
This means making it cheaper and easier to do business
by: facilitating easy and regular interaction between business and the City; promoting new partnerships with the
private sector, especially in tourism; and assisting small and
medium enterprises. A vital part of improving the business
environment will be the investments that the City intends
to make in transport (particularly public transport) and
municipal infrastructure.
The City is also aiming towards free and low-cost internet
supported by the development of a metropolitan wide area
network, which could be wireless enabled.
While the City has almost doubled in size over the past
20 years, the provision of new infrastructure has not kept
up with growth. Much of the City’s older infrastructure is
also in need of urgent replacement. Increased emphasis
on maintenance is a priority.
Not all the infrastructure requirements can be met at once
and the City plans to introduce various ways to promote the
sparing use of scarce resources like water and electricity.
Good governance
One of the most important aims of this five year period is
to improve the efficiency of the City’s administration. This
means getting the right people – particularly engineers and
project managers – to the right place in the organization
and improving the service culture and work ethic.
It also means reforming the way some things are done.
The City is exploring alternative ways to deliver municipal
services. It also aims to improve management of key financial areas such as income control, cash flow, asset and risk
management and support for the indigent.
» Cape Town 2007 – 2012
Public transport
Improving public transport is one of the City’s priorities in
this five year plan. However, the ultimate aim is much bigger: to create a transport legacy that will serve Cape Town
into the future.
To improve and promote public transport the City plans largescale investment in public transport infrastructure and a plan
for the City is in the final stages of production.
To reduce congestion, existing public transport priority lanes
will be enforced and new ones introduced.
Integrated Human
Settlements
The City faces many housing challenges. Some 350 000 families do not have adequate shelter and the housing backlog is
growing annually. Over the next five years the City aims to
steadily step up access to shelter by providing incremental
housing, starting with the provision of adequate services. The
programme to provide basic services to informal settlements
will be implemented.
The development of an integrated human settlement plan
includes not just houses, but all community facilities such as
cemeteries, sports facilities and libraries.
Safety and security
Crime threatens the well-being of citizens and the City’s
ability to attract and retain investment. The City aims to
make its contribution to preventing crime by improving its
performance in traffic policing, by-law enforcement and
general law enforcement.
High prominence is given to the upgrade of fire services.
The City plans to expand the CCTV network covering key shopping, business and transport locations and crime hotspots.
Health and social
development
Large parts of Cape Town are witness to chronic social problems from drug abuse and gangsterism to high infection
rates of HIV/Aids, sexually transmitted infections and Tuberculosis.
The City collaborates with other spheres of government in
promoting health and social development.
The City is responsible for air quality management and pollution control, including noise pollution.
Cape Town 2007 – 2012
«
Budget
Total budget: R 20, 3 billion
Total Budget: R20,3 billion
R3,8 billion
The 2007/8 budget increases by almost a
R16.4bn to R20.3bn.
Capital Budget
quarter, from
Operating Budget
et: R20,3 billion
This substantial increase will allow the City
to spend more on repairs, ����������������
replacement and
maintenance of crucial infrastructure and to
invest in new infrastructure.
R3,8 billion
R16,5 billion
Without this large increase in spending the
standard of key services – water, the treatment
of sewerage, electricity and roads – cannot be
sustained. Years of underinvestment means
Capital Budget
Operating Budget
2007/8 Operating Budget – Expenditure
(This includes the City’s running expenses)
2007/08 Operating Expenditure Budget (%)
City Improvement District
0.32%
Community Development Corporate Services
2.69%
5.97%
Economic and Social
Development
1.44%
Finance Services
4.86%
Health Services
2.29%
Integrated Human Settlement
4.75%
Utility Services
46.54%
Internal Audit
0.08%
Office of the City Manager
1.43%
Rates & Other
7.80%
Safety & Security
5.56%
Transport , Roads & Stormwater
8.18%
» Cape Town 2007 – 2012
Strategy and Planning
1.66%
Service Delivery Integration
6.43%
2007/8
More money to go on:
• new roads
• electricity distribution infrastructure, such as
substations
• housing
that Cape Town cannot delay any further in
upgrading and expanding of infrastructure.
• repairs and maintenance of traffic signals,
roads, sidewalks, bridges, stormwater drains,
parks and cemeteries
It’s for these reasons that the City has decided
on an above inflation increase in rates and services charges. The average rate of increase for
rates and services for 2007/8 will be 15%.
• repairing water leaks
Electricity charges will increase 5,6% ; waste
removal by 11% and water and sanitation by
19%. The water tarriff will be “stepped” so if
residents save water they will pay less.
• maintenance of refuse removal equipment and
fleet
• water and toilets to informal areas
• upgrading sewerage treatment plants
• new landfill (dumping) sites and facilities
• emergency services, especially fire fighting
services
2007/8 Capital Budget
Capital Expenditure / Directorate
(This includes investment in new infrastructure and equipment)
Office of the City Manager
0.92%
Internal Audit
0.01%
Strategy & Planning
1.31%
Community Development
4.42%
Economic & Social Development
0.81%
Transport, Roads & Stormw ater
19.93%
Service Delivery Integration
29.07%
Finance Services
0.61%
Integrated Human Settlement
Services
7.81%
Corporate Services
1.48%
Utility Services
32.06%
Safety & Security
0.86%
Health
0.70%
Cape Town 2007 – 2012
«
2010
The hosting of several of the matches, including a semi-final, of the
2010 FIFA World Cup will be a boon
for Cape Town.
The World Cup is the biggest sporting event in the world
and boasts a cumulative television audience of 25 to 28
billion viewers over the duration of the tournament. It
provides Cape Town with an opportunity to show-case its
scenic beauty and is an excellent marketing opportunity.
Although the City sees the event as an opportunity, it has
carefully avoided abusing rate-payers’ money or income
from services to pay for 2010. The total cost of the new
stadium being constructed in Green Point will be R2,857
billion. Of this, the City will contribute R400 million from
its own budget and has set aside another R100 million
for contingencies. The bulk of the funding comes from the
national treasury.
The City will also make available a further R185 million
from its reserves, which will be recouped once the operator
contract begins, on completion of the stadium. The recovery of the R185 million has been guaranteed by Investec
bank.
» Cape Town 2007 – 2012
The hosting of 2010 will also leave a very positive legacy
if it is well-managed. It has provided the catalyst for the
City (and other spheres of government and state-owned
enterprises) to invest heavily in public transport – and an
estimated R1,9 billion is to be spent in the period leading
to 2010. This includes large investments in rail and rail
facilities like stations and the promotion of 18-hour a day
transport services. This will be the lasting legacy for the
people of Cape Town.
Apart from contributing to the stadium, the City will also
use its budget to invest in events and venues related to
2010, such as fan parks.
Major Projects of
the five year plan
Roads
Emergency services
Spending on roads is a priority in this year’s budget
and there are a large number of projects spread
over several years. This includes more maintenance
for roads but also the construction or large-scale
upgrading of certain key roads.
Cape Town’s emergency services, especially its
firefighters, play a critical role in protecting both
lives and the natural environment. The City needs
to almost double its fire-fighting capacity – from
700 to 1300 staff – to provide a proper service.
Emergency services are to receive an additional
R22 million for staffing and R44 million for operational expenditure.
For example, the Strandfontein road is to be upgraded at a cost of R70 million to facilitate access
in and out of the new housing development at
Pelican Park.
Sewerage or wastewater treatment
Staffing
Cape Town’s sewerage infrastructure has not been
expanded despite the large growth of the City over
the past 20 years. The City’s waste-water treatment
works are under stress and this, in turn, threatens
our greatest asset – the natural environment. It also
constrains development and economic growth.
To meet all the requirements set out in the five
year plan, Cape Town needs more skilled staff,
especially more engineers and project managers.
Without them, the City will find it difficult to meet
its targets in housing and in the maintenance and
building of infrastructure. Additional funding has
been set aside for staffing.
A sum of R285 million over three years has been
budgeted for upgrading six of the City’s sewerage
works.
Electrical infrastructure
There is an urgent need to upgrade facilities that
are involved in the distribution of electricity, such
as sub-stations, transmission lines and switching
stations. Three areas have been prioritized for the
first cycle: the City business district, Roggebaai and
Green Point. Other areas will follow according to
the infrastructure upgrade programme.
Transport
The upgrading of public transport facilities feature
large in this year’s five year plan. Apart from the
large investment (R1,9bn) by all three spheres of
government in transport, the City also plans to
invest money in some of the busiest “corridors”
or routes to promote frequent public transport,
even during non-peak periods such as weekends.
The dedication of certain lanes as public transport
lanes will be enforced to promote the use of public
transport and improve its efficiency.
Infrastructure asset management
This year the City plans to put in place a planned
maintenance programme for infrastructure like
roads, electricity and water. Preventative maintenance will save the City costs in the long term.
When maintenance is neglected, infrastructure
like pipes, pumps and sub-stations end up having
to be completely replaced. The City wants to avoid
this happening in the future.
Metropolitan police plan
A safe city is a priority particularly in the context
of the hosting of the FIFA 2010 World Cup. The
City is developing an operational plan so that
together with other law enforcement agencies
we can co-ordinate enforcement and build a
safer city.
Cape Town 2007 – 2012
«
Our commitment to
Cape Town
The five year plan commits the City to meeting specific targets
over the next five year period. The performance of the City will be
measured by their success in achieving them. The targets include:
Economic development:
Public transport:
• Number of direct jobs created:
13 000 per year by 2012
(currently some 7000 direct jobs are
created per year)
• reduction of average commuter
time from 45 minutes to 35 minutes by 2012
• an additional 35km of dedicated
bus lanes by 2012
• Direct investment: R3,6 billion per
year by 2012
(currently in excess of R2 billion is
invested annually)
Management of City
infrastructure:
• development of a planned maintenance plan for electricity; sewerage; water, roads and stormwater;
and solid waste disposal
Basic services:
• Basic sanitation to all by 2012
(currently 96,9% of households
have sanitation)
• No more bucket toilets in formal
areas by 2007
• Basic water to all
(target achieved)
• 95,8% of households to have access to a basic amount of electricity by 2012
(currently 90% of households have
access to electricity)
• 99% of households to have solid
waste removal by 2012
(target achieved)
Your role in the IDP
The Integrated Development Plan (IDP)
is the five year plan that guides all planning
and development in a municipality and tells
us where to apply our resources.
The aim of the IDP is to develop citywide
plans that benefit the City as a whole, as
well as particular communities. It is the
product of an extensive process of planning
and consultation, repeated annually.
Consultations with City stakeholders and
various political parties resulted in
the Draft IDP (2007 -2012) being tabled
in council during March 2007. Citizens
participated in finalizing the Draft IDP during
Human Settlements:
• 12 000 new housing opportunities created per year by 2012
(currently 8335 housing opportunities are created each year)
• Upgrading of informal settlements
according to approved plans
• 95% of community facilities to
be maintained according to
standards (currently only 50% of
facilities are properly maintained)
April – and May 2007, via 23 Public Hearings
at sub-council level, where verbal- and
written submissions on the Draft IDP were
received from citizens. The revised IDP will
now be tabled in council on the 30th May
2007 for final approval.
All submissions have been forwarded to the
relevant departments, who will proceed with
the required actions/interventions.
Please note that the next opportunity for
your input on the IDP (City’s five year plan)
will take place in September/October 2007.
This will give you another opportunity to
influence budgets and plans of the City.
Issued by the City of Cape Town, IDP and Performance Management office.
» Cape Town 2007 – 2012
Conservation of
natural resources:
• 98% compliance with Department of Water Affairs and Forestry
guidelines in effluent standards by
2012
• Ensure 85% of recreational waters
comply with health standards by
2012
Financial
Management:
• Ensure 98% of budget spent
(increase from 95%)
• Collect 98% of billed amount
(increase from 94%)
For more information on the Public Participation
Process regarding the IDP (City’s plans for the
next five years) contact the IDP office:
Tel
Fax lines
E-mail
Website
021 400 5978 / 5979 & 5135
021 400 4909
Margaret.Isaacs@capetown.gov.za
www.capetown.gov.za.