Table of contents Glossary of terms Executive Summary 1 1. Introduction 13 1.1 Overview of the Municipality 13 1.2 Planning Process 19 1.3 City Priorities for 2006 to 2011 19 1.4 Governance Structure 22 2. Performance Highlights 29 2.1 Introduction 29 2.2 City Priorities and Performance Highlights for 2009/10 29 2.3 High Level Service Delivery Performance against Annual Targets 31 2.4 Inter-Governmental Relations, Communication, and Public Participation 40 3. Human Resources and Organisational Management 45 3.1 Introduction 45 3.2 Executive Management 45 3.3 Human Resources Strategy and Policies 45 3.4 Skills Development 46 3.5 Performance Management 48 4. Functional Service Delivery Reporting 53 4.1 Introduction 53 4.2 Community Development 55 4.3 Corporate and Shared Services 74 4.4 Economic Development 84 4.5 Environmental Management 120 4.6 Financial Sustainability 141 4.7 Health Services 155 4.8 Housing Delivery 174 4.9 Infrastructure and Services Delivery 181 4.10 Public Safety 195 4.11 Spatial Form and Urban Management 206 4.12 Transportation 251 4.13 2010 FIFA World Cup and Mayoral Legacy Projects 270 Executive summary The Consolidated Annual Report of the City of Johannesburg (CoJ) for the 2009/10 financial year is presented in accordance with Circular 11 of the Municipal Finance Management Act No 56 of 2003, detailing the Annual Report Guidelines prepared by the National Treasury. The first section of the report reflects on the City’s demographics, planning processes, priorities and governance structure. The demographics indicate a rapid urbanisation trend that is exacerbated by the Gauteng province’s status as South Africa’s economic hub. The CoJ in particular, tends to attract people from across the country and beyond. This puts pressure on the City’s resources for service delivery in an attempt to absorb the influx of especially poor households and communities. The planning process and outcomes define the City’s Growth and Development Strategy (GDS) and Integrated Development Plan (IDP), documents that entail a coherent strategic plan towards meeting the service delivery needs of the City’s citizenry. The strategic plan constitutes the City’s priorities, influencing the organisational structuring into key sector focus areas. This report is a reflection of annual progress made on the implementation of the strategic plan and is presented by these organisational key sector areas. The first section also indicates the governance model used in the City, highlighting the separation of Council executive and legislative functions, with a view to strengthening the participatory and Council oversight roles. The executive summary focuses mainly on the performance highlights and functional service delivery reporting sections of the report, reflecting on these according to the City’s organisational structure by sector. Community development The sector is driven by the strategic objective of measuring poverty and implementing the Extended Social Package, meant to assist poverty stricken households and individuals. The ESP has registered more than half a million (570 000) beneficiaries, reaching within annual and 5 year targets of 500 000 to 800 000. The services provided involved support to vulnerable households, (including 15 019 orphans against a targeted 10 000, as well as 229 child headed households), with education, skills development and food supply; improving access to social grants; rehabilitation of homeless and displaced persons from the streets; and provision of free basic services to all registered indigent households. The placement of job seekers through various mechanisms has helped reduce the dependency on the social package. Various other programmes were undertaken by the City to uplift community development. These ranged from sports, arts and culture programmes; human development such as caregiver training in Early Childhood Development, entrepreneurship development and support to vulnerable groups including 215 women and 49 companies owned by people with disabilities, and rehabilitation of 356 street children; to development of community infrastructure and facilities, involving revamping of stadia for the 2010 FIFA World Cup, grassing of informal sports fields and public environment upgrades. The maintenance of community facilities remains a challenge for the sector due to funding constraints. Corporate and shared services The City of Johannesburg (CoJ) has organised itself such that it has adequate institutional and human capital to advance towards a world-class City. This objective is carried out through the Corporate and Shared Services (CSS) sector, which has achieved 44% implementation of the workplace skills plan and 80% of employment equity targets across the CoJ during the period under review. It is clear that even more has to be done to improve the skills development within the City. CSS also commenced with preparations for staff succession and retention considering the upcoming end of local government term, and recorded 12% improvement in human resource services, as indicated by employee survey results. The sector facilitated the management of organisational resources according to plan, ensuring approximately 97% availability of fleet, 100% compliance of corporate buildings with Occupational Health and Safety Act building regulations, completion of the targeted 5 new public convenience facilities. Stabilisation of the labour environment is a concern for corporate services as the City often experiences industrial action. Economic development The economic development sector is responsible for the overall coordination and strategic direction of economic development in the City. The global economic conditions had a particularly detrimental effect on the economic development sector as investors were more risk averse. In facilitating investment, the sector attracted projects to the value of R1.714 billion into the Inner City through the Urban Development Zone Tax Incentive, as well as R1.523 billion private sector investment in Bruma, Newtown, Oasis Soweto, Market Theatre, Northcliff, Dube and Orlando West through the Johannesburg Property Company, against an annual target of R700 million, increasing investment to more than R9 billion over 5 years. The challenge with the leveraged investment is to translate the figures into implementation of tangible development projects that provide actual benefits. 1 The funding for the Jozi Equity Fund to support Small Medium and Micro Enterprises (SMME) had not been secured and this was deferred to the next financial year, amidst interaction with investors, including Old Mutual with an indication of R100 million potential investment. As such, financial support could not be granted to any of the targeted twenty SMME. Nevertheless, other forms of support were provided to SMME through The Business Place, including in excess of 1 000 SMME per month to start and formalise or access business opportunities, raising the total number of SMME assisted to date to 35 182. Furthermore, the sector, together with the LOC/FIFA, accredited over 2 000 informal traders to operate at Joburg Stadia during the 2010 FIFA World Cup. In addition, the City has supported informal trading by initiating and establishing the Informal Trading Forum, which has improved relationships with the 98 trader members as well as practical trading conditions. The City has exceeded the 5 year job creation targets through capital expenditure on the Extended Public Works Programme (EPWP). In the financial year under review, more than 40 000 EPWP jobs were created through the City’s CAPEX projects against a target of 20 000. The outcomes of the aggressive marketing approach by the Johannesburg Tourism Company to promote Johannesburg as a destination include entry into Skyscanner’s Top 50 destinations for UK travellers; improved International Congress and Convention Association business destination rankings from position 153 to 120; and dominating the international market share during the 2010 FIFA Soccer World Cup, with spectator numbers exceeding those of 2006 in Germany. The sector is particularly challenged and unfavourably affected by the global economic conditions and budgetary constraints. Consequently, investment could not be attracted for some of the City programmes such as the Jozi Equity Fund, Dirang Ba Bohle Community Bank and Soweto Empowerment Zone. The experienced challenges require the sector to intensify its facilitation role in programme implementation and focus on ensuring that key programmes aimed at developing the economy of the City are prioritised and implemented. Environmental management The CoJ recognises the contribution and significant role played by the natural environment in provision of sustainable services to its constituents. Issues of climate change, water pollution, air pollution, waste management, biodiversity and conservation continue to dominate City’s agenda in line with international trends and other cities. Further, compliance to applicable environmental regulation and overall literacy and awareness about environmental issues are just as dominant. At least four climate change mitigation programmes were implemented, against target of two. These were the Cosmo City climate proofing programme (400/700 households already completed); retrofitting of council owned buildings, use of clean technologies by the Rea Vaya Bus Rapid Transit and greening of traffic lights and streets. These programmes are on track and mostly funded externally. In terms of water courses, the sector