City of Johannesburg CONSOLIDATED GROUP ANNUAL PERFORMANCE REPORT FOR YEAR ENDED 30 JUNE 2009 In the future, Johannesburg will continue to lead as South Africa’s primary business city, a dynamic centre of production, innovation, trade, finance and services. This will be a city of opportunity, where the benefits of balanced economic growth will be shared in a way that enables all residents to gain access to the ladder of prosperity, and where the poor, vulnerable and excluded will be supported out of poverty to realise upward social mobility. The result will be a more equitable and spatially integrated city, very different from the divided city of the past. In this world-class African city, everyone will be able to enjoy decent accommodation, excellent services, the highest standards of health and safety, and quality community life in sustainable neighbourhoods and vibrant urban spaces. Glossary of Terms AG Auditor-General ARP Alexandra Renewal Programme CAPEX Capital Expenditure CoJ City of Johannesburg DPLG Department of Provincial and Local Government ED Executive Director EE Employment Equity EIA Environmental Impact Assessment EPWP Expanded Public Works Programme GAMAP Generally Accepted Municipal Accounting GRAP Generally Recognised Accounting Practice GDP Gross Domestic Product GDS Growth and Development Strategy HR Human Resources IDP Integrated Development Plan IFRS International Financial Reporting Standards JW Johannesburg Water KPA Key Performance Area KPI Key Performance Indicator LED Local Economic Development LG SETA Local Government Sector Education and Training Authority MFMA Municipal Finance Management Act No. 56 of 2003 MD Managing Director ME Municipal Entity MIG Municipal Infrastructure Grant MMC Member of Mayoral Committee MSA Municipal Systems Act No. 32 of 2000 NSDP National Spatial Development Perspective NT National Treasury OPEX Operating Expenditure PMS Performance Management System PT Provincial Treasury RED Regional Electricity Distributor SALGA South African Local Government Association SDBIP Service Delivery and Budget Implementation Plan SCM Supply Chain Management SDF Spatial Development Framework SoER State of Environment Report 1 TABLE OF CONTENTS Glossary of Terms Chapter 1: Introduction and overview 3 1.1 Executive Mayor’s Foreword 3 1.2 Accounting Officer’s Overview 5 1.3 Executive Summary 11 1.4 Introduction 16 1.5 Overview of the Municipality 18 1.6 Planning Processes 21 1.7 City Priorities for 2006 to 2011 22 1.8 Governance Structure 24 Chapter 2: Performance Highlights 31 2.1 Introduction 31 2.2 Communication, Inter-Governmental Relations and Public Participation 31 2.3 City Priorities for 2008/09 34 2.4 City’s Performance against the Five-Year and Annual Targets 35 2.5 Municipal Infrastructure Grant and Other Grants 67 2.6 Provision of Free Basic Services 68 2.7 Financial Performance for 2008/09 68 Chapter 3: Human Resources and Organisational Management 71 3.1 Introduction 71 3.2 Human Resources Strategy 71 3.3 Human Resources Management 71 3.4 Organisational Structure 75 3.5 Performance Management 77 3.6 Governance 80 Chapter 4: Functional Service Delivery Reporting 82 4.1 Introduction 83 4.2 Community Development 87 4.3 Corporate and Shared Services 101 4.4 Economic Development 105 4.5 Environmental Management 117 4.6 Financial Sustainability 127 4.7 Governance and Legislature 134 4.8 Health 151 4.9 Housing 161 4.10 Infrastructure and Services 167 4.11 Public Safety 177 4.12 Spatial Form and Urban Management 188 4.13 Transport 196 4.14 Preparation for the FIFA Confederations Cup 207 Part 2 Financial Report 214 1 Home to more than 3.8 million people 2 3 Chapter 1: Introduction and overview 1.1 Executive Mayor’s Foreword The financial year 2008/09 marks the medium period of our current political term. In our efforts to deal with poverty and under-development to improve the quality of life of citizens, our City remains committed to democratic governance to ensure that our short, medium and long term strategies, priorities and plans are implemented. Sustained implementation of our strategies contributes to the broader government programme of action as informed by the ruling party manifesto and political priorities. Performance in this 3rd year of the term represents our unwavering commitment as we have seen stable progress amidst external challenges. The national elections and subsequent reallocation of political roles in 2009 affected the City’s political executive leadership and thus oversight on programme implementation. The global economic downturn constrained budgetary commitments and attainment of certain service delivery targets. Despite these challenges, the City of Johannesburg has sustained constant service delivery performance. Good Governance and Financial Management The adequacy of internal management controls is a reflection of the City’s good governance practices. Evaluation of our financial and performance management systems by the Auditor General resulted in the third successive unqualified audit opinion. It is therefore no surprise that the long term credit rating outlook was maintained at a satisfactory AA- during the financial year. In addition, the City successfully implemented the new Rates Act and substantially reduced the debtor’s book through increased collection of outstanding revenue. Human Resources Development The development of human resources is critical in ensuring improved service delivery. Annual Workplace Skills Plans are developed and implemented, with competency assessments continuously conducted and training interventions effected to address identified skills gaps. Community Development and Safety Human development is not only internally focused through staff development, but also looks externally to improve Joburg’s people. The City embarked on several initiatives to promote skills development, library information services, entrepreneurship skills, and sports and arts and culture development. In absorption of the poor, we have intensified the Expanded Social Package Services to improve social assistance through provision of support services to vulnerable households and groups. Our care for communities is also evident in the several safety initiatives that the City conducted, which include fire safety, safety awareness to prevent drowning and traffic control to reduce road fatalities. Increased efforts will continue to be unleashed to combat crime. Economic Development The City contributed to the national goal of job creation with the provision of more than 50 000 jobs through the Expanded Public Works Programme and Property Boomshare Strategy. Although potential investors were more risk averse considering the economic climate, outward investment in excess of R5 billion was secured in various areas within the City boundaries, including the Johannesburg Central Business District. Environmental Management Our environmental footprint in contributing towards the global efforts to manage the effects of climate change is marked by the year’s focus on facilitating implementation of a range of environmental tools, including the Climate Change Mitigation Strategy. Other focused interventions are aimed at improving the quality of water resources, air quality, energy saving, and greening the City through tree planting and development of eco-parks. 2 3 Health Services In a bid to improve access to health services, the City has extended service hours and increased its fixed clinic service points. We have intensified the fight against HIV and AIDS through implementation of various programmes and better coordination with other spheres of government and civil society. Our HIV and AIDS prevalence rate has shown a decreasing trend in the past 3 years. Housing Delivery The City of Joburg upholds the political commitment to better the lives of South Africans through accelerated housing delivery. More than 20 000 housing units were built during 2008/09, through mixed income, rental housing and community builder and people’s housing processes. Our future plans include increased focus on the formalisation of informal settlements, as this has implications for the provision of other basic services. Infrastructure and Basic Services We have made great strides in the provision of basic services to our citizens, with all indigent households within the City receiving free basic services. All our households have access to a basic level of water service. We have extended a daily waste collection service to promote cleanliness and hygiene standards in informal settlements. The City is, through various means, dealing with the challenges of unaccounted for water and electricity losses. Transportation The Bus Rapid Transit has been the City’s major transport focus for the year under review, with completion of Phase 1A, including 20 stations despite stakeholder management challenges. Transportation arrangements were successfully coordinated for the FIFA Confederations Cup. Confederations Cup, FIFA 2010 and Mayoral Legacy Projects The successful hosting of the FIFA Confederations Cup affirmed the whole of South Africa’s capability to host the 2010 FIFA Soccer World Cup. As a host City, we are on schedule with preparations for the World Cup, ranging from security, transportation, accommodation arrangements to training and match venues and so on. The 2010 World Cup legacy is already implicit in the multi-million rand cash injection for the regeneration of the urban environment. Mayoral Legacy Projects, such as greening of sports fields, development of Inner City street furniture