MAKING PROGRESS POSSIBLE. TOGETHER. INTEGRATED ANNUAL REPORT 2019/20 2 CITY OF CAPE TOWN MAKING PROGRESS POSSIBLE. TOGETHER. INTEGRATED ANNUAL REPORT 2019/20 INTEGRATED ANNUAL REPORT 2019/20 3 CONTENTS SFA 5: SFA 1: WELL-RUN CITY OPPORTUNITY CITY 159 47 SFA 2: SFA 4: SAFE CITY INCLUSIVE CITY 123 89 SFA 3: CARING CITY 101 4 CITY OF CAPE TOWN Vision and mission of the Strategic focus area 3: Significant accounting Appendix F: List of City of Cape Town 6 Caring city 101 policies 198 figures and tables 340 About this annual Strategic focus area 4: Statement of financial Appendix G: MFMA report 9 Inclusive city 123 position 214 Circular 63 appendices 342 Message from the Strategic focus area 5: Statement of financial Appendix H: Annual Executive Mayor 10 Well-run city 159 performance 215 report of the Municipal Statement by the City Statement of changes in Public Accounts Manager 12 net assets 216 Committee to the Council of the City Cash flow statement 217 of Cape Town 344 Statement of comparison Appendix I: City of 175 of budget and actual Cape Town trend amounts – economic OVERVIEW OF watchlist 346 entity 220 15 FINANCIAL Appendix J: 2019/20 OVERVIEW OF PERFORMANCE Statement of comparison integrated THE CITY OF of budget and actual governance report 347 AND ECONOMIC amounts – Municipality CAPE TOWN Appendix K: B-BBEE STABILITY of Cape Town 220 compliance performance About Cape Town 16 Operating results for Notes to the report 353 revenue and Overview of basic consolidated annual APPENDIX L: expenditure 176 services provided by the financial statements for 2019/20 INTEGRATED City of Cape Town 22 Net surplus result 177 the year ended GOVERNANCE REPORT 30 June 2020 222 362 Mapping the future of Capital expenditure 177 Cape Town – the MSDF Annexures 293 APPENDIX M: B-BBEE Consumer debtors and BEPP 23 178 compliance performance Investments and report 384 cash 179 APPENDIX N: B-BBEE Compliance Performance Borrowings 169 Information on Credit rating 169 319 compliance with the 27 APPENDICES B-BBEE Act is included in the annual GOVERNANCE, Appendix A: 2019/20 report under appendix COMPLIANCE annual performance K – Annexure A and B management report – AND RISK 386 City of Cape Town 320 MANAGEMENT APPENDIX N: B-BBEE 181 Appendix B: City governance Compliance Performance CONSOLIDATED Definitions for 2019/20 structures and Information on ANNUAL annual performance frameworks compliance with the 28 management report – FINANCIAL B-BBEE Act City of Cape Town 326 STATEMENTS is included in the annual Appendix C: 2019/20 Reporting entity’s report under appendix annual performance mandate 182 K – Annexure A and B management report – (continued) 388 Approval of the CTICC 332 APPENDIX O: City 47 consolidated annual Appendix D: 2019/20 of Cape Town cost PERFORMANCE financial statements 182 annual performance containment information REVIEW Report of the Auditor- management report – 389 Strategic focus area 1: General 183 Cape Town Stadium 334 Opportunity city 47 Appendix E: A list of General information 194 Strategic focus area 2: abbreviations used Safe city 89 in this report 336 INTEGRATED ANNUAL REPORT 2019/20 5 VISION AND MISSION OF THE CITY OF CAPE TOWN THE CITY OF CAPE TOWN’S VISION IS THREEFOLD: To be an opportunity city that creates To SERVE the an ENABLING To deliver citizens of Cape Town ENVIRONMENT for QUALITY services as a well-governed economic growth and job to all residents and corruption-free creation, and to PROVIDE administration HELP to those who need it most IN STRIVING TO ACHIEVE THIS VISION, THE CITY’S MISSION IS TO: Check CONTRIBUTE ACTIVELY to the development of its environmental, human and social capital; Check offer HIGH-QUALITY SERVICES to all who live in, do business in or visit Cape Town as tourists; and Check be known for its EFFICIENT, EFFECTIVE and CARING government. Spearheading this resolve is a focus on infrastructure investment and maintenance to provide a sustainable drive for economic growth and development, greater economic freedom, and increased opportunities for investment and job creation. 6 CITY OF CAPE TOWN In pursuit of its vision and mission, the City is building on the strategic focus areas (SFAs) it has identified as the cornerstones of a successful and thriving city, which also form the foundation of its five-year Integrated Development Plan. THE FIVE STRATEGIC FOCUS AREAS ARE AS FOLLOWS: SFA 5: SFA 1: WELL-RUN CITY OPPORTUNITY CITY This SFA is underpinned Create an environment where by the principles of the investment can grow and 2016 King IV Report on Corporate jobs can be created. Governance for South Africa. SFA 4: SFA 2: INCLUSIVE CITY SAFE CITY Create a city where everyone Create a safe living and business has a stake in the future and environment for its residents. enjoys a sense of belonging. SFA 3: CARING CITY Build a metro that offers a sustainable environment, a sense of belonging, access to services, and help to those who need it. THESE FIVE FOCUS AREAS INFORM ALL THE CITY’S PLANS AND POLICIES. INTEGRATED ANNUAL REPORT 2019/20 7 VISION AND MISSION FOCU OBJ NCE C S IC EC A TA I A G T M RG EG R E IV R T E T E O E A A S F T A S S R R R T The five focus E T S The City’s strategic S areas inform all of P The City’s progress focus areas are broken the City’s short- and is monitored against down into strategic long-term plans: the identified objectives to ensure performance targets. improved alignment. IAL ISS RAMM ER UE G ES T S RO A These are P M the issues that the City must consistently The operational keep in mind in order to carry programmes and out operations in alignment projects that drive with the five strategic focus the City’s strategic areas. These issues must be developments. integrated into all planning in a transversal manner. Some of the City’s material issues Check Sustainable, integrated human Check Sustainable land use include the following: settlement efficiencies and development Check Addressing climate change Check Social sustainability with a Check Customer communication and and improving resource focus on poverty alleviation satisfaction measurement efficiency and urban resilience Check Economic sustainability Check Sustainable procurement with Check Efficient water supply, through financial prudence preference and support of SMEs use and management Check Effective and transparent Check Infrastructure maintenance Check Efficient energy supply, governance and management and development use and management of risk Check Transformation, diversity Check Effective, integrated Check Achieving environmental and talent management waste management sustainability and Check Efficient and effective biodiversity objectives corporate administration Figure 1: Elements feeding into the City of Cape Town’s vision and mission 8 CITY OF CAPE TOWN ABOUT THIS ANNUAL REPORT This 2019/20 integrated annual report continues the These include, but are not limited to, the following: City of Cape Town’s journey towards fully integrated reporting. As such, it aligns as far as possible with the recommendations of the 2016 King Report on Check The City’s Service Delivery Corporate Governance for South Africa (or King IV), and Budget Implementation as well as globally accepted standards for integrated Plans (SDBIPs) 2019/20 reporting. Check The City’s 2019/20–2021/22 budget It offers the reader a comprehensive view of Check The Integrated Public Transport the City’s financial, operational, social and Network (IPTN) 2032 environmental efforts, performance, successes and challenges for the 12 months from 1 July 2019 to Check The Transit-Oriented Development 30 June 2020, which represents the administration’s (TOD) Strategic Framework financial year. It also reflects the City’s progress Check The Built Environment against the objectives set in its Integrated Performance Plan (BEPP) Development Plan (IDP) for the five years from 2017 to 2022, but with a particular focus on the IDP Check The Cape Town Spatial amendments for the 2019/20 period. Development Framework Check The report is further informed by a number of other The City of Cape Town City plans and strategic documents produced by its Economic Growth Strategy various directorates and business areas. Check The City of Cape Town Social Development Strategy The content of this annual report is structured around the five strategic focus areas (pillars) and their underlying objectives, as contained in the City’s five-year IDP. It is also linked to various material issues highlighted in the IDP and the City’s other sector plans. These are issues that the City is working to address as part of delivering its service mandate within the context of its five strategic focus areas and long-term vision. INTEGRATED ANNUAL REPORT 2019/20 9 MESSAGE FROM THE EXECUTIVE MAYOR The global coronavirus pandemic presented unexpected and significant challenges to the City of Cape Town administration in the 2019/20 financial year. These necessitated the reconfiguration of priorities, including reorganising budgets, to ensure that basic service delivery was maintained. We worked hard to continue providing quality services to our residents throughout the Covid-19 crisis. Fortunately, the drought conditions that had beset humanity. Our staff on the front lines and behind the Cape Town since 2017 have improved. In terms scenes have done sterling work. Our communities, of water availability, we are in a better position assisted by the City, have reached out to their fellow now than we were two years ago, and have begun residents with care and compassion. implementing a strategy to diversify our water sources to become a water-resilient city. As future Although the pandemic has had a significant effect rainfall remains uncertain, it is important to continue on how we operate, we still managed to spend 96% our water-wise habits.