vision and mission documents/annual...1 our vision ... is for tshwane to be the leading african...

1

Our vision ... is for Tshwane to be the leading African capital city of excellence

that empowers the community to prosper in a safe and healthy

environment.

Our mission ... is to enhance the quality of life of all the people in Tshwane

through a developmental system of local government and by

Our value system ... has been developed to guide each employee on a daily basis

to realise the vision of the City of Tshwane. The value system

consists of the following values:

services for the whole community based on needs as-

sessments.

democratic participation in the Municipality’s activities.

core activities in a consistent manner.

best business practices.

ing the Municipality’s performance.

and non-discriminatory policies and practices.

The strategic focus areas of the City of Tshwane are based on

tegic areas are:

ensuring that infrastructure is maintained in all other parts

of the city.

more sustainable jobs are created and the city becomes

more globally competitive.

healthy and safe.

ment in the day-to-day affairs of the city and observing the

and accountable service.

institution so that it promotes good governance and high

that the staff are more representative of the society they

through a performance-based approach.

The above strategic focus areas are guided by the long-term goals

es of the past term and to review and align them to new

relations with other cities locally and internationally.

Vision and Mission

CHAPTER 1: INTRODUCTION AND OVERVIEW

Foreword by the Executive Mayor .................................................................... 4Executive Review by the City Manager .............................................................. 6Report of the Audit Committee ......................................................................... 8Introduction and Overview ............................................................................... 10Overview of the Municipality ............................................................................ 12Executive Summary .......................................................................................... 14

CHAPTER 2: PERFORMANCE HIGHLIGHTS

Free basic services .......................................................................................... 18Key successes and challenges .......................................................................... 19

CHAPTER 3: HUMAN RESOURCES AND ORGANISATIONAL MANAGEMENT

Organisational structure ................................................................................... 34Alternative Service Delivery ............................................................................. 34Organogram .................................................................................................... 35Staff Contingent .............................................................................................. 37HR Practices and Policies ................................................................................. 40Outstanding Amounts Owed ............................................................................. 46

CHAPTER 4: AUDITED STATEMENTS AND RELATED FINANCIAL INFORMATION

Audited Statements and Related Financial Information ....................................... 48Auditor General’s report – financial statements ................................................. 49Report of the Chief Financial Officer - financial statements ................................ 55Entities .......................................................................................................... 69Accounting Policies ......................................................................................... 70Financial Statements ........................................................................................ 83Performance Management Report ..................................................................... 170

CHAPTER 5: FUNCTIONAL SERVICE DELIVERY REPORTING

General Information ......................................................................................... 202Issues for Provincial Authorities to Report on .................................................... 206Functional analysis per Government Finance Statistics Classification .................. 207Executive and council ...................................................................................... 207Finance .......................................................................................................... 213Human Resources ............................................................................................ 215Planning and Development ............................................................................... 223Economic Development ................................................................................... 230Health .......................................................................................................... 241Community and Social Services ........................................................................ 246Social Development ......................................................................................... 259Housing .......................................................................................................... 261Public Safety ................................................................................................... 266Waste Management .......................................................................................... 273Waste Water Management ................................................................................ 275Transport ........................................................................................................ 279Roads .......................................................................................................... 279Water .......................................................................................................... 286Electricity ........................................................................................................ 290Street Lighting ................................................................................................. 294Footnotes ........................................................................................................ 296Notes .......................................................................................................... 298

2

The City of Tshwane Metropolitan Municipality – Annual Report 2006/07

TABLE OF CONTENTS

INTR

OD

UC

TIO

N A

ND

OV

ERV

IEW

CHAPTER 1

4


GROUP ACCOUNTING POLICIES FOR THE YEAR ENDED 30 JUNE 2006

OOnce again we present the City of Tshwane’s

since the formation of the City of Tshwane in

of the current leadership running the city.

The core mandate of local government is

service delivery. To this end we commit-

ted ourselves in the previous annual report

number of households that receive essential

services.

tried to meet most of the commitments we

completed and occupied houses in Win-

structure developments were added to the

created. The creation of these jobs has gone

a long way to contributing to halving poverty

by 2014.

that 19 256 stands were provided with water.

19 376 residential stands were provided with

sewer connections. As in the case of electri-

done by local labour.

The above are only some of the many public

because through these projects we delivered

services on the one hand and created jobs

on the other.

within the context of preparing for the 2010

was a catalyst for infrastructure development

and local economic development.

All these projects and developments were

made possible by the dynamic and ever

developing relationship that the City of

Tshwane continues to nurture with various

the business sector remained an inspiration

to us. The non-government sector was also

supportive.

An exciting development was the

ture between the City of Tshwane and the

residents and visitors would have noticed

of national government departments were

renovating buildings in the city or erecting

new ones.

staff. We concluded the year with a new or-

The structure was born out of a careful study

the city needed to be supported by a dynam-

ic and responsive structure.

With this vision and aligned structure the

City of Tshwane will continue to deliver on

its mandate.

Dr Gwen Ramokgopa

Executive Mayor

FOREWORD BY THE EXECUTIVE MAYOR

Chapter 1

Dr Gwen Ramokgopa, inaugurated on 27 May 2006.

6


TThe City of Tshwane attained major achievements in its endeavour to contribute to the upliftment

greater heights.

the 2006/07 budget was allocated to infrastructure development projects that straddle a number of

capital city.

City of Tshwane to ensure that developed strategies are supported by the organisational structure.

2000 when the City of Tshwane was born out of thirteen previous municipalities that were disestab-

lished and amalgamated into the City of Tshwane Metropolitan Municipality.

ture which did not correspond fully with the demands that were placed on the Municipality. With the

roll out effective service delivery would gain momentum.

the millions of people who will visit our country to watch the matches. We are ready to ensure that the

2010 World Cup is a major success that will help Africa to claim its rightful place in world affairs. We

aim to demonstrate that we are indeed Africa’s leading capital city of excellence.

At all times our goal is to ensure that we empower the community to prosper in a safe and healthy

Kiba Kekana

City Manager

Chapter 1

EXECUTIVE REVIEW BY THE CITY MANAGER

Mr Kiba KekanaCity Manager


REPORT OF THE AUDIT COMMITTEE

REPORT OF THE AUDIT COMMITTEE FOR THE YEAR ENDED 30 JUNE 2007

ATTENDANCE OF MEETINGS

Name of member Number of meetings held Number of meetings attended

6 6

6 5

6 4

6 4

AUDIT COMMITTEE RESPONSIBILITY

relevant legislation.

EFFICIENCY AND EFFECTIVENESS OF INTERNAL CONTROL

documented policies and procedures and inadequate management supervision and review.

oversight committee established to assist the Council to ensure appropriate standards in terms of handling public funds and serving

RISK MANAGEMENT

9

REVIEW AND EVALUATION OF THE ANNUAL FINANCIAL STATEMENTS

The Committee –

CONCLUSION

to the following issues that adversely affected the City of Tshwane:

The continuing instances of non-compliance with internal control procedures and performance management regulations

World Cup event.

Ms T Moja

Chairperson of the Audit Committee

10


Chapter 1

ACCESS TO BASIC SERVICES AND INFRASTRUCTURE

provision of and access to basic services were human rights.

ACCELERATED AND SHARED ECONOMIC GROWTH

tion and unemployment remained two of the most critical chal-

lenges facing the city. The city hosted a consultative summit in

REDUCING POVERTY AND BUILDING SUSTAINABLE COMMUNITIES

households had access to basic services. The number of reg-

unemployed residents.

Tshwane contributed as follows to the Top 20 Townships

project:

Table 1: Tshwane contributions (R) to the Top 20 Townships

Project

Township 2006/07

Atteridgeville

Mamelodi

FOSTERING PARTICIPATORY DEMOCRACY

The City of Tshwane izimbizo directly contributed to the realisa-

sible and accountable service by providing a vehicle for public

participation and engagement with government.

oral Committee subsequently implemented a new approach

where all Members of the Mayoral Committee held individual

and the Council. The purpose of this review was to enhance

executive accountability and oversight by establishing more

section 79 committees that report to the Council and thus

accountability and monitoring.

posts were created to alleviate high turnover and to ensure

possibility of establishing a call centre in the north was investi-

gated.

GOOD GOVERNANCE, FINANCIAL VIABILITY AND OPTIMAL INSTITUTIONAL TRANSFORMATION

monitoring and implementation capabilities. The following was

achieved:

decentralised service delivery model

1.1 INTRODUCTION AND OVERVIEW

12


Chapter 1

Geographical context

people.

Demography

Table 2: Main source of income (Household Survey 2005)

Salaries and/or

wages

Remittances Pensions and

grants

Sales of farm

products

Other non-farm

income

No income Total

442 675 3 750 620 210

1.2 OVERVIEW OF THE MUNICIPALITY

13

Table 3: Household income

Monthly household income Monthly household expenditure (General Household Survey, 2006)

(StatsSA)

95 921

20 356

60 301 126 212

95 921

76 033 55 533

66 194 65 630

50 099

21 361 25 242

5 494

25 242

1 951 626 011

TOTAL 597 520

Source: Statistics South Africa (2006)

14


Chapter 1

FUNCTIONAL SERVICE DELIVERY REPORTING

1.3.1 Vision

Our vision is for Tshwane to be the leading African capital city of

excellence that empowers the community to prosper in a safe

and healthy environment.

1.3.2 Mission

Our mission is to enhance the quality of life of all the people in

Tshwane through a developmental system of local government

1.3.3 Service delivery achievements for the 2006/07 fi nancial year

Electricity

Housing and Environmental Management

connections

Winterveld

Roads and Stormwater

tion

Water and Sanitation

Economic Development (including Transport)

10 bus terminals and taxi lay-bys per year.

Wonderboom Airport

foreign embassies and national/provincial government as

the entity doing most in the aviation/business sector over

the past 12 months to stimulate economic growth and de-

velopment in the Tshwane Municipal District.

Health and Social Development

1.3 EXECUTIVE SUMMARY

15

times

date

Metro police and Emergency Management Services

attended to

Finance

gated and corrected on the billing system.

1.3.4 Statement of fi nancial health

sional report prepared on a basis similar to the prescribed bud-

revenue and expenditure “actuals” represented approximately

The revenue variance is explained by:

the year-end accrual appropriation journals had to be

reduced the unfavourable variance.

The operating expenditure variance can be explained by:

The capital expenditure report was prepared on the basis of

into major output “type”. The summary report indicates the

following:

Table 4: Summary statement of capital expenditure

Description June YTD

Budget

R’000

June YTD

Actual

R’000

Variance

Favourable

(Unfavourable)

TOTAL capital

expenditure

1 590 251 224 407

TOTAL capital 1 590 251

than budget target

budget target

target

budget target

The summary report for outstanding debtors indicates that a

The summary report for outstanding creditors indicates that

majority of creditors were trade creditors.

16


Clr N Mokwena

MMC for City Planning

and Development

Clr B Lehobye

MMC for Community

Safety

Clr G Thwala

MMC for Corporate

and Shared Services

Clr T Ernest

MMC for Agriculture and

Environmental Management

Clr Z Masondo

MMC for Arts, Culture, Heritage,

Sports and Recreation

Clr S Pillay

MMC for Public

Works and

Infrastructure

Development

Clr A M Ditshoke

MMC for Housing

and Sustainable

Human Settlement

Development

Clr P Chueu

MMC for Economic

Development

Clr S Thipe

MMC for Health

and Social

Development

Clr W B Mahlangu

MMC for

Finance

Dr G M Ramokgopa

Executive Mayor

Clr T Komane

Chief Whip of Council

Clr K Dau

Speaker

PER

FOR

MA

NC

E H

IGH

LIG

HTS

CHAPTER 2


E2.1 Energy and Electricity

of supply. This included the generation of electricity and the

The department achieved the following:

13 110

6 303

quality of supply.

2.1.1 Level and standard of service1

The provision of services was guided by the following:

paid metre boxes and readyboard lifeline connections free

of charge.

2.1.2 Free basic electricity

consumers. The Tshwane supply area was divided into the

consumers in these supply areas. The City of Tshwane paid

areas.

Chapter 2

PERFORMANCE HIGHLIGHTS FREE BASIC SERVICES

1. The Council approved the service levels on 25 January 2007.

19

2.1.3 Progress with backlog eradication

30 June 2005 30 June 2006 30 June 2007

Required Budgeted Actual Required Budgeted Actual Required Budgeted Actual

Electricity backlogs (GWH per month)

Backlogs to be eliminated (number of

households not receiving minimum service)

Backlogs to be eliminated (percentage of

households identified as backlogs against

total number of households) 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0%

Spending on new infrastructure to eliminate

backlogs (R) 38 000 000 31 404 652 36 989 000 36 808 143 85 600 000 85 464 001

Spending on the renovation of existing

infrastructure to eliminate backlogs (R) 485 000 000 70 413 000 66 619 393 435 000 000 124 062 000 123 184 798 380 000 000 144 848 000 144 855 096

Total spending to eliminate backlogs (R) 485 000 000 108 413 000 98 024 045 435 000 000 161 051 000 159 992 941 380 000 000 230 448 000 230 319 097

Spending on maintenance to prevent the

creation of new backlogs (R) 450 000 000 240 450 782 122 618 832 450 000 000 226 387 882 160 466 070 450 000 000 195 526 054 196 581 921

2.2 Roads and Stormwater

the construction and maintenance of roads under the City of

Tshwane’s jurisdiction. These services related to all roads in the

The division achieved the following:


The provision of services was guided by the following:

with the full level of stormwater drainage.

Key successes and challenges


20


2.2.2 Progress with backlog eradication

30 June 2005 30 June 2006 30 June 2007


Backlogs to be determined (number of house-

holds not receiving minimum service)

Backlogs to be determined (percentage of

households identified as backlogs against total

number of households) 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0%

Spending on new infrastructure to eliminate

backlogs (R) 101 436 380 122 856 000 93 671 468 101 570 000 101 225 642 95 543 026 145 745 000 144 895 426 119 759 199

Spending on the renovation of existing infra-

structure to eliminate backlogs (R) 57 500 000 56 460 880 45 822 723 88 094 000 87 614 000 84 802 602 100 500 000 91 626 082 78 046 552

Total spending to eliminate backlogs (R) 158 936 380 179 316 880 139 494 191 189 664 000 188 839 642 180 345 628 246 245 000 236 521 508 197 805 751

Spending on maintenance to prevent the crea-

tion of new backlogs (R) 179 415 269 153 015 577 170 402 995 180 668 315 158 323 577 170 630 852 199 357 775 170 650 664 169 128 706

Total spending to eliminate backlogs (R) 698 936 380 320 729 880 269 437 772 784 664 000 414 890 642 403 001 202 1 036 245 000 613 215 971 573 831 759

Total spending on maintenance (R) 789 415 269 502 869 257 398 426 588 815 668 315 500 324 991 452 577 596 874 357 775 536 389 027 559 324 277

PERFORMANCE HIGHLIGHTS

Chapter 2

2.3 Transport Planning

The Transport Development Division envisioned the develop-

ment of an integrated transport system to meet the needs of all

transform Tshwane’s entire public transport system. The City

2.4 Water and Sanitation

leading local government provider of sustainable high-quality

water and sanitation services in Africa. The division consisted of

Consumer Management. The division achieved the following:

1 473


The provision of water services was guided by the following:

vided in proclaimed townships and metropolitan activity

development radius are provided with a full service.


21

The provision of sanitation services was guided by the follow-

ing:

metropolitan activity nodes for developments within a

full service.

holds as a service.

2.4.2 Free basic water and sanitation

2.4.2.1 Free basic water

l of water each month was provided free of charge

cross-subsidisation by large water consumers or households

l of free water

per month.

2.4.2.2 Free basic sanitation

l of waste water of 351 000 households was dis-

30 June 2005 30 June 2006 30 June 2007


Water backlogs (6 kl per month)

Backlogs to be eliminated (number

of households not receiving minimum

standard of service) 20 263 20 263 20198

Backlogs to be eliminated (percentage

of households identified as backlogs

against total number of households in

Tshwane) 0,0% 0,0% 3,6% 0,0% 0,0% 3,6% 0,0% 0,0% 3,6%

Spending on new infrastructure to

eliminate backlogs (R) 5 000 000 3 000 000 2 925 000 40 000 000 28 000 000 27 532 933 150 000 000 77 138 398 77 138 398



Total spending to eliminate backlogs

(R) 25 000 000 13 000 000 12 825 000 100 000 000 51 000 000 49 677 933 240 000 000 109 138 398 108 998 846

Spending on maintenance to prevent

the creation of new backlogs (R) 110 000 000 65 730 000 65 730 000 130 000 000 71 366 000 80 380 000 150 000 000 107 900 000 134 900 000

Sanitation backlogs

Backlogs to be eliminated (number

of households not receiving minimum

standard of service) 40 570 38 760 38 440

Backlogs to be eliminated (percentage

of households identified as backlogs

against total number of households) 0,0% 0,0% 7,2% 0,0% 0,0% 6,9% 0,0% 0,0% 6,8%

Spending on new infrastructure to

eliminate backlogs (R) 20 000 000 16 000 000 15 294 536 50 000 000 11 000 000 10 284 700 150 000 000 28 108 065 28 108 065



Total spending to eliminate backlogs

(R) 30 000 000 20 000 000 19 094 536 60 000 000 14 000 000 12 984 700 170 000 000 37 108 065 36 708 065

Spending on maintenance to prevent

the creation of new backlogs (R) 50 000 000 43 672 898 39 674 761 55 000 000 44 247 532 41 100 674 75 000 000 62 312 309 58 713 650

22


Chapter 2

2.5 Housing

ance areas:

ding of all infrastructure and services

for housing developments

The department achieved the following during 2006/07:

The establishment of sustainable human settlements called

for the development of urban cores that cluster social facilities

for the surrounding communities. This led to the approval of a

use of public transport.

peripheral area

2.6 Environmental Management

the year under review were the following:

the neighbouring community about the importance of water. The

theme for the day was “Coping with water scarcity”. To give ef-

with the prevention of water wastage from continuously running

taps.

The City of Tshwane participated in the annual provincial cam-

participation.

2.6.1 Parks and Horticulture

disadvantaged areas.

Department and had excellent results with by-law enforce-

and rehabilitating existing social and economic infrastruc-

ture in the previously marginalised 20 townships.

tained by means of the best horticultural practices and

decreased personnel corps.

2.6.2 Nature Conservation and Resorts


23

2.6.3 Environmental Planning

pact management.

nicipal departments on the changed requirements.

eign Affairs headquarters projects.

comments on the ever increasing and voluminous amounts of

development considerations.

2.6.4 Environmental Resource Management

Tshwane received a boost. The audit consisted of a systematic

with the auditing were the following:

holders and the public

Tshwane

tal aspects and impacts

vironmental management system

2.6.5 Cemetery Services

The section ran the following projects:

and paving of two internal roads

paving of internal roads

tute families to have their family members buried or cremated

with dignity. The cost of such burials and cremations was car-

2.7 Waste Management

2.7.1 By-law enforcement

Waste Management achieved the following:

illegal distribution of pamphlets.

ing and overgrown vacant stands.

were paid by 33 companies.

24


Chapter 2

2006.

sites.

l containers were provided for street clean-

income.

sector organisations and communities.


l l

l bins are replaced by the 240 l bins in a phased manner.

2.7.3 Free basic waste removal

The City of Tshwane serviced 731 552 basic waste removal

27 community-based contractors were appointed for this puprose. This created job opportunities and contributed to pov-

2.8 Sport, Recreation, Arts and Culture

should result in the establishment of world-class facilities in the

underdeveloped parts of Tshwane.

Tshwane.

programme on 20 October 2006.

2006.

2006.

2007.

2.9 Integrated Community Development

ties:

2.10 Health

2.10.1 Level and standard of service

the norm.



25

2.10.2 Primary Health Care

awareness of free services in Tshwane.

clinic.

extended.

ics was conducted between 26 March and 2 April 2007.

The results were as follows:

2.10.3 Environmental Health

management plan for Tshwane in accordance with legisla-

tion.

ed.

ted to the Council.

2.10.4 Emergency Medical Services (ambulances)

ance with provincial norms and standards: 47 026

for 2006/07:

Calls received

Total number of calls received

at the communication centre

72 253

RECEIVED CALLS ATTENDED TO: 85,83%

2.11 Community Safety

Community safety services offered by the City of Tshwane

2.11.1 Tshwane Metropolitan Police Service

The department achieved the following during the 2006/07

hanced following the employment of 650 new members.

talities on Tshwane roads compared to the previous year.

help enforce by-laws.

ing the hosting of major events was an important mile-

stone in the preparations for 2010.

out. The department managed and sustained the project

its roll-out in Atteridgeville.

26


Chapter 2

2.11.2 Disaster Management

Disaster management services were rendered in terms of the

duced a new approach to the management of disastrous situa-

tions by emphasising the need for preventive measures.

tion

The division achieved the following:

permission was sought to begin with the establishment of

interdepartmental planning clusters for the development

section 53 of the Disaster Management Act (Act 52 of

2.12 City Planning

quality of life in marginalised areas as well as to create more

economic development opportunities for the communities.

2006 and selected the City of Tshwane as a “strategic ally”. An

next step was to submit budgets for the capital funding of spe-

morial

ties in the north-west that previously did not have land-use

The following developments of substantial extent or strategic

importance were facilitated:

- a builder’s yard and home improvement centre


27

Annual total

2005/06

July to September

2006

October to December

2006

January to March

2007

April to June

2007

Annual total

2006/07

Building plan applications received 23 891 5 026 5 001 6 414 4 927 21 368

Building plan applications approved 21 494 3 761 2 946 5 323 4 644 16 674

Building plans outstanding 2 397 1 265 2 055 1 091 283 4 694

Approved construction area (M2) 3 872 867 757 841 572 431 721 040 929 106 2 980 418

Approved construction value (R) 13 555 034 500 2 652 443 500 2 003 508 500 2 523 640 000 3 251 871 000 10 431 463 000

Occupation certificates issued – residential 13 007 2 805 4 147 1 764 2 140 10 856

Occupation certificates issued – business 614 123 55 58 75 311

Number of applications outstanding on

1 July 2006

Number of new applications received in

2006/07

Total value of new applications received Number of applications outstanding on

30 June 2007

2 397 21 368 R10 431 462 7 091

town-planning schemes in the Tshwane area of jurisdiction with townships approved in terms of other legislation in a single town-

schemes.

Type Received Finalised

Quarter 1 2 3 4 Total 1 2 3 4 Total

Consent uses 207 25 162 174 568 184 13 160 141 498

Simultaneous consent uses and removals of restrictions 39 0 37 19 95 34 0 23 23 80

Subdivisions 98 18 81 82 279 84 11 104 85 284

Consolidations 24 1 13 26 64 25 2 15 16 58

Simultaneous subdivisions and consolidations 12 1 5 8 26 3 0 13 7 23

Divisions 18 3 10 13 44 14 2 12 19 47

Removals/amendments/consents of restrictive conditions 30 3 17 17 67 21 1 7 4 33

Rezoning 187 26 137 178 528 76 16 95 146 333

Township establishment 40 17 22 26 105 33 17 19 62 131

Amendments after township approval 46 40 37 18 141 61 40 50 22 173

Administrative closures 0 0 0 0 0 140 6 178 322 646

1 917 2 306

2.13 Economic Development

Tshwane requires an economy that can meet the needs of all

its economically active citizens and enterprises in a sustainable

problems and a vast list of community-based needs still had to

be addressed.

environment for business activities in the city by means of its

strategies and policies and sought to encourage positive reac-


Chapter 2

tion to and spin-offs from the private sector from targeted inter-

ment.

lowing:

tre from 9 to 10 October 2006. The summit culminated

the City of Tshwane was serious about the development

of the agricultural sector in Tshwane and was bent on

ensuring that its integrated agricultural development and

vantaged communities.

2.14 Corporate Services

approved by the Council. As part of the implementation

(full-time bursaries to 24 non-employees for critical and

were presented to 179 learners and apprenticeship pro-

grammes to 75 learners.

for 2007.

nisms to limit the casualisation of labour services were

developed.

contained information on occupational health and safety

ees.

following:

- Training of peer educators

- Training of City of Tshwane managers

- Disease management

and did so through a public participation process.

saving per month for the City of Tshwane.

logging system.

2.15 Finance

der review as on 7 August 2007. Total operating revenue real-


29

The following successes were achieved:

service delivery and further implementation of the Mu-

continuation of the City of Tshwane’s status as a leading

the Mayoral Committee on 12 October 2006.

delivery policy options and various funding alternatives in

spite of time constraints (a ten-month process achieved

the legislative prescriptions and timeframes and included

cial Management Division.

5

2.16 Good governance

reporting fraud and corruption and was to be operational from

with municipal performance evaluations.

30


Chapter 2

2.16.1 Customer Care

PROJECTS SUMMARY OF ACHIEVEMENTS AND INNOVATIONS

CUSTOMER CARE CALL CENTRE Call centre agents appointed: 55 (R6,7 million made available during the financial year for salaries and operating expenses)

Calls received: 391 056

Faxes received: 42 845

Emails received: 31 891

A “call logger” was installed to record all incoming and outgoing calls (calls can be listened to and agents can be coached and guided on how to

handle customer calls more efficiently).

HOTLINE NUMBERS INTRODUCED IN

THE NORTH

Hotline numbers were installed at the Customer Care centres in Ga-Rankuwa, Mabopane, Temba, Soshanguve and Rosslyn.

This initiative made our services more accessible, as the telephones allowed the poorest of the poor to contact the City of Tshwane free of

charge.

RATIONALISATION OF CUSTOMER

CARE CENTRES

All front-office employees of Client Services (Finance) were taken over by Customer Care on 1 November 2006. A total of 68 employees were

involved, and they were trained and deployed to the Customer Care walk-in centres.

All switchboard employees were taken over by the Customer Care Call Centre on 1 November 2006. The employees were trained for their

future work at the call centre.

CUSTOMER CARE WALK-IN CENTRES Altogether 699 253 customers visited our 18 customer care centres.

Walk-in centres were opened at Ga-Rankuwa, Mabopane and Soshanguve Block X, which brought the total number of centres to 23. The

Client Services (Finance) office at BKS, Fortsig, Bodibeng and Hammanskraal were transferred to the Customer Care Division as part of the

rationalisation of walk-in and call centres.

ESTABLISHMENT OF CALL CENTRE IN

THE NORTH

A report outlining the feasibility of the establishment of a call centre in the north was forwarded to the City Manager for approval.

BATHO PELE CONFERENCE AND

PLEDGE

The Batho Pele pledge was signed by management at the Batho Pele Conference at the Centurion Council Chamber on 28 May 2007.

CUSTOMER SATISFACTION SURVEY A customer satisfaction survey was conducted in 2007 to gauge the perceptions of communities of City of Tshwane services. Information gained

from the survey was reviewed and problem areas were identified. The final report and comparative analysis report were submitted to the Execu-

tive Mayor and Municipal Manager early in July 2007.

COMPILATION AND DISTRIBUTION

OF CUSTOMER CARE GUIDE (2ND

EDITION)

The Customer Care Guide contains the names and functions of all departments, telephone numbers, frequently asked questions and answers,

and other municipal information.

NORMS AND STANDARDS REPORT A Norms and Standards Report was approved by the City Manager.


31

2.16.2 Special programmes

hosted to present various economic empowerment op-

2.16.3 Strategic partnerships

tives:

and at no cost to those who could not afford the fees.

and encouraged them to remain in shelters and complete

their schooling. This was part of the students’ practical

course requirements.

presented programmes to correct deviant behaviour with

the help of various partners.

to be sent to the remaining schools. Over 1 000 copies

were made and an estimated 100 000 children and adults

domestic violence were provided with free shelter when

needed.

when needed.

tion measure.

lected 91 000 bags of litter. This led to urban regeneration and

direct investment in terms of property redevelopment of about

HU

MA

N R

ESO

UR

CES

and

orga

nisa

tiona

l man

agem

ent

CHAPTER 3

33.1 ORGANISATIONAL STRUCTURE OF THE CITY OF

TSHWANE

The organigram on page 33 gives an overview of the

organisational structure approved by the Mayoral Committee

3.2 ALTERNATIVE SERVICE DELIVERY

The City of Tshwane formulated and adopted an alternative

3.2.1 Business modelling

the establishment of various forms of business and/or alterna-

community.

3.2.2 Organisational design

3.2.2.1 Design methodology

The methodology followed in the development of the organisa-

tional structure included the following processes:

Chapter 3

34


HUMAN RESOURCES AND OTHER ORGANISATIONAL MANAGEMENT

Activity and process

1. Develop and implement purpose and functional structure template

2. Departments or units complete purpose and functional structure template

3. Scrutinise purpose and functional structures received and define KPAs

4. Develop organisational structure in terms of KPAs and match existing micro-level structures with the proposed structure

5. Organise validation sessions with management of departments, specialist units and MMCs

6. Share critical information and proposals on functional and organisational structure with management of departments, specialist units and MMCs at valida-

tion sessions

35

Mac

rost

ruct

ure

City

of T

shw

ane

Met

ropo

litan

Mun

icip

ality

MU

NIC

IPA

L M

AN

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ER

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IVE

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Inte

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OPE

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eral

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ager

Serv

ices

GO

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OR

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AN

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VIC

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TSH

WA

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RO

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POLI

TAN

PO

LIC

E

36

Chapter 3

HUMAN RESOURCES AND ORGANISATIONAL MANAGEMENT


following:

2007. The change from municipal entity to public entity meant

to revise it.

cause it called for a decision: “[T]transfer ownership as a result

of a sale or other transaction or otherwise permanently dispose

of a capital asset needed to provide the minimum level of basic

municipal services.”

notice on exemption from certain provisions of the Act. This

exemption made it possible for municipalities to transfer their

unclear what had to be done with non-core distribution assets

which called for the ring-fencing of street lights and related

activities by the department so that services could continue

uninterrupted.

such as telephones and information technology facilities was

whether it would be a municipal asset or had to be transferred

followed by the Council resolution of 31 May 2007 that the City

of Tshwane establish the TTA as a legal body separate from the

fore be an external service provider to the City of Tshwane. The

Council further resolved that the necessary applications for the

establishment of the TTA be submitted to the member of the

micro structures for the TTA.

mentation of bus rapid transit in Tshwane and made provision

for the establishment of appropriate institutional mechanisms.

this special-purpose vehicle.

Mayoral Committee approved the establishment of the Tshwane

a special-purpose vehicle. The roll-out of Teda would form part

3.2.3 Regional infrastructure analysis

to operationalise the regional model so as to bring municipal

principles.

37

3.2.4 Job evaluation and costing

able.

3.3 STAFF CONTINGENT OF THE CITY OF TSHWANE

NUMBER AND COST OF STAFF PER JOB FUNCTION

2005/06 2006/07

NUMBER R NUMBER R

All municipal staff 13 012 1 728 302 762 12 179 1 857 925 469

Professional (managerial/specialist) 966 472 947 562 908 35 154 989

Field (supervisory/foremen) 3 869 702 821 628 3 600 62 153 978

Office (clerical/administrative) 4 366 516 801 636 3 977 50 198 691

Non-professional (blue collar, outside workforce) 3 811 35 731 936 3 694 27 458 445

Key function 2004/05 2005/06 2006/07

Number of

posts

Number of

posts filled

Number of

posts

Number of

posts filled

Number of

posts

Number of

posts filled

Service Delivery 2 670 1 874 2 670 1 820 2 670 1 766

Social Development 1 546 932 1 546 953 1 546 923

Emergency Management Services 1 286 559 1 286 748 1 286 664

Housing, City Planning and Environmental Management 3 696 2 784 3 696 2 480 3 696 2 429

Metropolitan Police 3 094 1 615 3 094 1 621 3 435 1 582

Corporate Services 1 782 1 396 1 782 1 590 1 782 1 449

Economic Development and Tourism 974 626 974 763 974 642

Finance 1 208 862 1 208 677 1 208 642

Governance Operational Support 150 262 150 111 156 107

Electricity 2 878 1 923 2 878 1 935 2 878 1 879

Legal and Secretarial Services and Municipal Courts 338 192 338 200 338 186

Marketing 67 28 67 24 67 23

Office of the Chief Operating Officer 25 19 25 13 25 12

Office of the Municipal Manager 99 35 99 44 109 46

TOTAL 19 813 13 107 19 813 12 979 20 170 12 331

Chapter 3



Financial year R Percentage of total budget

2001/02 1 503 290 000 33,5

2002/03 1 662 200 000 32,0

2003/04 1 836 928 240 31,3

2004/05 2 092 836 481 31,66

2005/06 2 369 366 000 32,0

2006/07 2 412 004 371 28,91

Incumbent Pay number Designation Remuneration package

per annum (2006/07)

R

Bonus

R

BK Mosley-Lefatola 500605 Municipal Manager 1 030 044 65 106,00

TJ Makgabola 1002406 Chief Operating Officer 559 344 43 326,67

NV Makhari 10003848 Chief Financial Officer 867 000 –

H Msimang 10002322 Executive Head: Tshwane Metropolitan Police 839 016 142 266,00

JL Alberts 506522 Strategic Executive Officer: Emergency

Management Services

885 096 163 720,00

Vacant – Strategic Executive Officer: Service Delivery – –

ES Mhlongo 505436 Strategic Executive Officer: Social Develop-

ment

855 564 158 260,00

N Pillay 153581 Strategic Executive Officer: Housing, City

Planning and Environmental Management

855 564 53 017,00

Z Ndziba 10002930 Strategic Executive Officer: Corporate

Services

854 160 26 267,00

HJ Wiese 505444 Strategic Executive Officer: Economic

Development

855 564 53 017,00

DK Siwela 505908 Head: Legal and Secretarial Services and

Municipal Courts

855 564 –

39

Description Mayor Members of

the Mayoral

Committee

City Manager Chief Finan-

cial Officer

Strategic

Executive

Directors

Total

Salaries and wages R’000 10 219 585,00

Normal

Mamonare Patricia Chueu

Tessa Ernest

Subesh Pillay

Absolom Molafo Ditshoke

Sonto Sophia Thipe

Zodwa Lydia Masondo

Boesman William Mahlangu

Cornelius Thipe Mokoena

Gabriel Twala

Dikeledi Joahanna Lehobye

527 223,75

395 418,16

395 418,16

395 418,16

395 418,16

395 418,16

395 418,16

395 418,16

395 418,16

395 418,16

395 418,16

580 128,31 577 999,99 15 066 097,65

Strategic Executive Officer: Corporate Services 855 564,00

Strategic Executive Officer: Office of the Mayor 854 160,00

Chief of Staff 855 564,00

Head: Legal Services 855 564,00

Chief Operating Officer 855 564,00

Strategic Executive Officer: Emergency

Services

559 344,00

Strategic Executive Officer: Economic Develop-

ment

885 096,00

Strategic Executive Officer: Housing, City Plan-

ning and Environmental Management

855 564,00

Executive Head: Tshwane Metropolitan Police 839 016,00

Strategic Executive Officer: Social Development 855 564,00

Travel and motor car


Tessa Ernest

Subesh Pillay


Sonto Sophia Thipe

Zodwa Lydia Masondo



Gabriel Twala


175 741,25

131 805,59

131 805,59

131 805,59

131 805,59

131 805,59

131 805,59

131 805,59

131 805,59

131 805,59

131 805,59

1 493 797,15

40

Chapter 3



Description Mayor Members of

the Mayoral

Committee

City Manager Chief Finan-

cial Officer

Strategic

Executive

Directors

Total

Other benefits and allowances (specify) R ‘000


Tessa Ernest

Subesh Pillay


Sonto Sophia Thipe

Zodwa Lydia Masondo



Gabriel Twala


26 227,00

13 104,00

13 104,00

13 104,00

13 104,00

13 104,00

13 104,00

13 104,00

13 104,00

13 104,00

13 104,00

157 267,00

3.4 HUMAN RESOURCE PRACTICES AND POLICIES

3.4.1 Review of human resource policies

The table below shows the status regarding policies in the City of Tshwane.

POLICY TO BE RENEWED POLICY TO BE DEVELOPED

dures

part of the Remuneration Policy and the Retention Strategy)

services (still to be implemented)

41

line for recruitment and selection was drafted and would be discussed with the various City of Tshwane departments during 2007. All

3.4.2 Employment equity

Occupational categories Male Female White male Foreign nationals TOTAL

A C I A C I W W Male Female

Legislators, senior officials and

managers

142 14 11 66 4 5 87 219 0 0 548

Professionals 388 14 6 123 4 3 105 435 0 0 1 078

Technicians and associate profes-

sionals

370 16 10 283 20 6 276 631 0 0 1 612

Clerks 1 328 71 26 843 99 28 889 586 0 0 3 870

Service and sales workers 60 0 2 59 1 0 3 8 0 0 133

Skilled agricultural and fishery

workers

30 0 0 27 0 0 1 4 0 0 62

Craft and related trades workers 462 5 1 11 0 0 11 315 0 0 805

Plant and machine operators and

assemblers

924 10 2 28 1 0 12 159 0 0 1 136

Elementary occupations 3 220 13 0 179 3 0 4 28 0 0 3 447

TOTAL PERMANENT 6 924 143 58 1 619 132 42 1 388 2 385 0 0 12 691

Non-permanent 2 667 7 4 340 11 5 93 99 0 0 3 226

GRAND TOTAL 9 591 150 62 1 959 143 47 1 481 2 484 0 0 15 917

The status of employment equity per occupational level can be gleaned from the next table.

Occupational levels Male Female White male Foreign nationals TOTAL

A C I A C I W W Male Female

Top management 8 0 1 2 0 0 0 2 0 0 13

Senior management 134 14 10 64 4 5 87 217 0 0 535

Professionally qualified and experienced

specialists and mid-management

758 30 16 406 24 9 381 1 066 0 0 2 690

Skilled technical and academically qualified

workers, junior management, supervisors,

foremen and superintendents

1 880 76 29 940 100 28 904 913 0 0 4 870

Semi-skilled and discretionary decision-

making

924 10 2 28 1 0 12 159 0 0 1 136

Unskilled and defined decision-making 3 220 13 0 179 3 0 4 28 0 0 3 447

TOTAL PERMANENT 6 924 143 58 1 619 132 42 1 388 2 385 0 0 12 691

Non-permanent 2 667 7 4 340 11 5 93 99 0 0 3 226

GRAND TOTAL 9 591 150 62 1 959 143 47 1 481 2 484 0 0 15 917

42

Chapter 3



3.4.3 Skills development

The statistics on learning interventions are given in the table below.

OCCUPATIONAL CATEGORY TOTAL

Clerks 1 059

Craft and related trades workers 560

Elementary occupations 434

Legislators, senior officials and managers 60

Plant and machine operators and assemblers 178

Professionals 567

Service and sales workers 500

Skilled agricultural and fishery workers 72

Technicians and associated professionals 1 833

Bursars 1

Temporary employees 10

Learnership placements 49

Pensioners 2

Grand total 5 325

relevant to the target group.

leadership development programmes.

The table below gives the number of bursaries allocated for 2006/07.

210

20

60

Mayoral matric awards 30

Total 320

43

The next table offers an overview of learnerships and apprenticeships for 2006/07.

Name of learnership or

apprenticeship

Department Number of students

during intake of

learnership or

apprenticeship

Budget Provider Start date Proposed

ending date

LEARNERSHIPS

EPWP Vukuphile Learn-

ership

Service Delivery 33 Part of EPWP budget South Africa

Value Education

September

2006

June 2009

Environmental Edu-

cation, Training and

Development Practices

Learnership

Environmental

Management

1 Funded by the Depart-

ment of Environmental

Affairs and Tourism

Zanokuhle/

Wildlife and Envi-

ronment Society

of South Africa

10/04/07 April 2008

National Certificate: Fire

and Rescue Operations

(NQF 4)

Emergency Manage-

ment Services

29 learners Emergency

Management

Training

02/07/07 30/06/08

National Certificate: Elec-

trical Engineering (NQF 2)

Electricity 53

(50 employees did

the learnership, as

one withdrew and two

passed away)

None budgeted, all

costs paid in 2005/06

Integrated Adult

Training

19/06/06 08/09/06

Premos

(group of 50,

divided into five

groups of ten

employees)

Group 1:

11/09/06

09/02/07

Group 2:

05/03/07

30/06/07

Groups 3 to

5: dates not

available

Tshwane Electric-

ity HRD section

Group 1:

12/02/06

09/03/07

Group 1: Prac-

tical training

12/03/06

30/07/07

Group 2:

March 2007

29/06/07

Electricity Distribution Electricity Premos 11/09/007 Ongoing

Water Service HR 5 Premos 17/01/05

15/01/06

17/01/07

Completed

15/01/08

30/07/08

APPRENTICESHIPS

EPWP Electricity 94 Gauteng Province PGH and TFET 01/06/06 2009

Vehicle mechanic HR 38 Premos 17/01/05

15/01/06

24/01/07

Ongoing

44

Chapter 3



Name of learnership or

apprenticeship

Department Number of students

during intake of

learnership or

apprenticeship

Budget Provider Start date Proposed

ending date

Plumber HR 18 Premos 17/01/05

15/01/06

24/01/07

Ongoing

Welding HR 27 Premos 17/01/05

15/01/06

24/01/07

Ongoing

Fitting and turning HR 20 Premos 17/01/05

24/01/07

Ongoing

Boilermaker HR 10 Premos 17/01/05

24/01/07

Ongoing

Auto electrician HR 7 Premos 17/01/05

17/01/06

Ongoing

Electrician HR 30 Premos 17/01/05

15/01/06

24/01/07

Ongoing

Total 375

3.4.4 Occupational health and safety

injuries captured on the centralised reporting system and ranged from bee stings and emotional stress to fatalities. The number of

3.4.5 Employment wellness management

and/or emotional problems.

3.4.6 Performance management

45

action. The model suggested that the organisation be viewed from the following four perspectives as aligned to the City of Tshwane

environment:

delivery

deliver on the mandates and requirements of the City of Tshwane

3.4.7 Exit Interview Policy

3.4.8 Pension funds

The membership composition of the pension and provident funds is depicted below.

Fund 2006/07

Number of members

National Pension Fund for Municipal Workers 3 251

Municipal Gratuity Fund 1 452

Joint Municipal Pension Fund 64

Municipal Workers Pension Fund 1 859

Samwu National Pension Fund 979

Tshwane Municipal Provident Fund 1 639

Tshwane Municipal Pension Fund 327

Sala Provident Fund 97

Sala Pension Fund 992

Germiston Municipal Retirement Fund 2

Government Employees Pension Fund 122

Meshawu Gratuity Fund 61

Pension Fund for Councillors 108

TOTAL 10 953

46

Chapter 3



3.4.9 Medical aid funds

Membership of the medical aid funds is summarised in the next table.

Fund 2006/07

Number of members

Bonitas 2 685

Hosmed 4 191

Global (was Pretmed) 1 616

Munimed 1 368

LA Health 334

Samwumed 120

TOTAL 10 314

3.5 OUTSTANDING AMOUNTS OWED TO THE CITY OF TSHWANE

The table below shows the amounts owed by employees to the City of Tshwane in the year under review.

Number of employees Type of loan/outstanding debt Total owed (R)

168 Car loan 5 346 007,44

206 Council recovery loan 1 066 221,50

22 Lost goods loan 326 350,90

3 Study loan 15 130,36

6 743 784,90

AU

DIT

ED S

TATE

MEN

TSan

d re

late

d fin

anci

al in

form

atio

n

CHAPTER 4

Annual report 2006/07

Chapter 4

or notes to the accounts.

must comply with the following requirements:

to justify the rates and charges raised. The budget-to-actual

comparison must be in the same format as the approved

budget.

statement of changes in net assets and supporting notes

to the statements. They should also disclose information on

municipal entities.

are also applicable.

All intergovernment grants received through the Division of

must be provided as shown in the document Quarterly in-

formation on grants in order to align the intergovernment

must be provided for each grant in terms of the outputs and

inability to spend the funds in time or not properly account-

ing for the grant funds.

AUDITED STATEMENTS AND RELATED FINANCIAL INFORMATION

49

AUDITOR-GENERAL’S REPORTFINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2007

REPORT OF THE AUDITOR-GENERAL TO THE COUNCIL AND THE GAUTENG PROVINCIAL LEGISLATURE ON THE GROUP FINANCIAL STATEMENTS AND PERFORMANCE INFORMATION OF THE CITY OF TSHWANE METROPOLITAN MUNICIPALITY FOR THE YEAR ENDED 30 JUNE 2007

REPORT ON THE FINANCIAL STATEMENTS

Introduction

70 to 136.

statements

accordance with the basis of accounting determined by the

responsibility includes:

control relevant to the preparation and fair presentation

selecting and applying appropriate accounting

policies

the circumstances.

Responsibility of the Auditor-General

audit.

comply with ethical requirements and plan and perform the

statements are free from material misstatement.

5. An audit involves performing procedures to obtain audit

evidence about the amounts and disclosures in the

relevant to the entity’s preparation and fair presentation of

purpose of expressing an opinion on the effectiveness of

the entity’s internal control.

6. An audit also includes evaluating the:

appropriateness of accounting policies used

reasonableness of accounting estimates made by

management

Presentation of

Financial Statements

entities shall provide information on whether resources

were obtained and used in accordance with the legally

adopted budget. As the budget reporting standard is still

my audit of any disclosures made by the CTMM in this

respect will be limited to reporting on non-compliance with

this disclosure requirement.

and appropriate to provide a basis for my audit opinion.

Basis of accounting

statements on the basis of accounting determined by the

50


10. Property, plant and equipment

As previously reported in paragraph 4.2 of the 2005/06

Due to the current status of the property plant and

equipment that has a purchase value of less or equal

plant and equipment and decrease expenditure

calculated over the useful life as determined by the

accounting policy and the amount will be expensed

as depreciation and the carrying amount will decrease

depreciation amount and the effect on the net surplus

could not be determined.

register of the CTMM did not permit the application of

alternative audit procedures regarding the above items.

11. Creditors

Presentation of Financial Statements paragraph

accrual basis of accounting. This requires that the effects of

transactions are recognised when they occur. The CTMM

invoices and goods or services received before year-end.

As a result of unadjusted errors relating to transactions

individual creditors’ reconciliations were not performed for

all creditors.

12. Material losses as well as irregular or fruitless and

wasteful expenditure

or fruitless and wasteful expenditure and any criminal or

procedures could be performed to quantify the material

losses as well as the irregular or fruitless and wasteful

expenditure.

Provisions, Contingent Liabilities

and Contingent Assets.

14. Assessment rates and property values disclosed

The CTMM is currently still in the process of following up and

reconciling the valuation roll and the valuation roll values

with the relevant billing system regarding assessment rates.

There were no satisfactory alternative audit procedures

that could be performed to obtain reasonable assurance

that all assessment rates had been properly recorded and

accuracy of the assessment rates income as well as site

15. Regional services council (RSC) levies


51

accordance with the basis of accounting determined by the

Emphasis of matters

Tshwane was disclaimed. As a result of the

disclaimer no assurance could be given on the

The council failed to disclose the short-term

portion of arrangement debtors as a current asset.

Presentation

of Financial Statements

within one year must be disclosed separately and

not included in long-term receivables. Although

to clearly establish the amount of the short-term

not provide this information.

statements. The supporting information to this

matter could not be provided at the date of this

performed.

resolve the payment of this amount. The outcome

of the matter can presently not be reasonably

been made.

18. Basis of accounting

deviation from the basis of accounting applicable

to the municipality in terms for Government Notice

522 of 2007 issued in Government Gazette 30013

of 29 June 2007.

OTHER MATTERS

19. Non-compliance with applicable legislation

Act

advertisements as required by the supply chain

resulted to non-compliance with section 111 of the

52


the CTMM could not provide evidence that it was

although the CTMM provided interest-bearing

more detail on the loans refer to note 12 to the

20. Matters of governance

20.1 Audit committees

CTMM did not have an audit committee as required

audit committee not being in a position to review

A functioning system of internal audit did not exist

during the year under review for any the municipal

submitted for audit

due to subsequent additional information received

effected.

term loans was not separately disclosed in the

was therefore understated and the long-term loan

overstated.

22. Internal control

control component as indicated.


53

Reporting item Control environment Assessment of

risks

Control activities Information and com-

munication

Monitoring

Basis for qualification

Property Plant and Equipment

Creditors

Material losses, irregular or fruitless and wasteful

expenditure

Provision for rehabilitation of landfill sites

Assessment Rates and property values disclosed

Regional Services Council (RSC) Levies

Emphasis of matter

Municipal Entities

Short term arrangement debtors

Grants and subsidies paid

Basis of accounting

Other matters

Non compliance with applicable legislation

Matters of Governance

Material corrections of the financial statements

control review were the following:

Logical security controls were inadequate.

and basis and system administrators having access to

security administration functions.

modify tables that had been customised but not assigned

had access to maintain client-independent tables in the

production environment.

Change control was ineffective as the developer had access

documents were not always signed off at the appropriate

level of management before and after implementation.

23. Investigations in progress or completed

various departmental heads. The investigations covered a

wide range of activities of the CTMM and were still ongo-

ing at the date of this report and the effect therefore on the

24. Unaudited supplementary schedules

them.

Other reporting responsibilities

Reporting on performance information

54


port of a municipality must include the annual performance

report of the municipality prepared by the municipality in

Responsibility of the Auditor-General

General Notice 646 of 2007

in Government Gazette No. 29919 of 25 May 2007 and

appropriate evidence about the performance information

cedures selected depend on the auditor’s judgement.

ed below.

the reported performance information as set out on pages

not received in time.

The performance audit committee did not review all the

the functions of the performance audit committee were not

The policies and procedures relating to the performance

management system did not in all instances include all

laws and regulations applicable to the performance man-

included in the policies and procedures are the following:

and to the general public.

requiring the allocation of resources in the munici-

pal annual budget based on the development pri-

orities and objectives as well as the performance

targets set by the municipality.

performance was not compared to the targets set or the

the quarterly reports.

APPRECIATION

35. The assistance rendered by the staff of the CTMM during

the audit is sincerely appreciated.

21 December 2007


55

INTRODUCTION1.

community.

To provide quality basic services and infrastructure throughout the city

To ensure accelerated shared and higher local economic growth and development

having the capacity to execute its mandate

in strategic economic infrastructure but also how the private sector and the community react through complementary investments.

other economic opportunities.

planning principles were applied.

REVIEW OF OPERATING RESULTS2.

The 2006/07 budget of the City of Tshwane was approved by the Council on 31 May 2006 and the adjustments budget was approved

municipality only are included in this report.

2.1 GENERAL

05 000

10 000

Rm

illio

n

Inco

me

Expen

ditur

eSur

plus/D

efici

t

OPERATING RESULTS 2006/07(Municipality)

Adjusted budget

Actual

REPORT OF THE CHIEF FINANCIAL OFFICER

Chapter 4

56



Description Original

budget

2007

R’000

Adjusted

budget

2007

R’000

Municipal-

ity actual

2007

R’000

Group

actual

2007

R’000

Variance

actual/

adjusted

budget

%

Municipality

actual

2006

R’000

Group

actual

2006

R’000

REVENUE

Accumulated surplus: Beginning of year 524 028 645 624 293 819 374 064

Operating revenue for the year 8 448 683 8 587 559 8 604 455 8 793 692 0,2 8 204 120 8 433 932

8 448 683 8 587 559 9 128 483 9 439 316 8 497 939 8 807 996

EXPENDITURE

Operating expenditure for the year 7 899 977 8 386 035 8 288 135 8 547 157 (1,2) 7 633 199 7 822 374

Sundry transfers 548 706 201 524 52 662 38 617 340 712 339 998

Accumulated surplus: End of year 787 686 853 542 524 028 645 624

8 448 683 8 587 559 9 128 483 9 439 316 8 497 939 8 807 996

2.2 OPERATING REVENUE

OPERATING REVENUE 2006/07 (Municipality)

15%

4%

20%

30%

12%

19%Opex grants andsubsidiesCapex grants

Assessment rates

Electricity sales

Water sales

Other

57

2.3 OPERATING EXPENDITURE AND REMUNERATION

OPERATING EXPENDITURE 2006/07(Municipality)

Other general e xpenses

W ater purchasesE lectricity purchases

E mployee costs Repairs and maintenance

DepreciationC ontributions

Description 2006/07 2005/06

Municipality

R’000

Group

R’000

Municipality

R’000

Group

R’000

Total operating expenditure 8 288 135 8 547 157 7 633 199 7 822 374

Total operating revenue 8 604 455 8 793 692 8 204 120 8 433 932

Employee remuneration 2 412 004 2 445 747 2 160 602 2 191 596

Ratio: % of total expenditure 29,10% 28,61% 28,30% 28,01%

Ratio: % of total revenue 28,03% 27,81% 26,34% 25,99%

% Growth in remuneration 11,64% 11,60% 4,38% 5,77%


Chapter 4


0

5 000

10 000

R million

2006 2007

Financial year

REMUNERATION vs OPERATINGEXPENDITURE (Municipality)

Total operatingexpenditure

Remuneration

2.4 GOVERNMENT GRANTS AND SUBSIDIES

total revenue.

Description Municipality

2006/07

R’000

Group

2006/07

R’000

Municipality

2005/06

R’000

Group

2005/06

R’000

Equitable share * 1 002 650 1 002 650 261 870 261 870

Provincial Health Subsidy 21 499 21 499 10 912 10 912

Provincial Ambulance Subsidy 31 200 31 200 30 641 30 641

National Safety Grant 419 419 757 757

Provincial motor vehicle licences refund 58 252 58 252 51 325 51 325

Capex: Grants and donations 317 834 317 834 360 157 360 157

Opex: Grants and donations 42 486 42 486 1 530 1 530

Finance Management Grant 2 118 2 118 2 956 2 956

Restructuring Grant 48 371 48 371 42 550 42 550

Department of Water Affairs and Forestry 14 265 14 265 2 150 18 071

IMEI grant 0 0 410 410

MSIG 2 000 2 000 0 0

Roodeplaat Temba Water Services Trust 25 000 0 20 000 0

Other 0 700 0 4 248

1 566 094 1 541 794 785 258 785 427

* The large increase in equitable share allocation is due to the RSC levies being replaced after abolishment of these levies.

59

GOVERNMENT GRANTS AND SUBSIDIES2006/07 (Municipality)

66,2%1,5%1,4%

2,0%

3,8%

0,9%

21,0%

3,2%Equitable share

Other

Health

Ambulance

Licences

Water Affairs andForestryCapex grants

Restructuring

DEBTORS AND CREDIT CONTROL3.

housing loan debtors and land sale debtors were due to the

sale of houses and vacant land on credit in terms of Council

resolutions.

The abovementioned increases were counteracted by a decrease

to the phasing out of these motor car loans.

Municipality Group

Total

R’000

Increase/(decrease)

R’000

Total

R’000

Increase/(decrease)

R’000

Households 2 048 398 (55 927) 2 194 886 (160 845)

Industrial/Commercial 814 954 214 141 814 954 214 141

National and provincial government 72 370 22 056 72 370 22 056

Other 210 818 6 601 210 818 6 601

Total 3 146 540 186 871 3 293 028 81 953


Chapter 4

60


The increase in consumer debt per ageing analysis is as follows:

Age analysis group Municipality Group

Total

R million

Increase/(decrease)

R million

Total

R million

Increase/(decrease)

R million

Current (0 – 30 days) 890 778 201 063 1 037 266 96 145

31 – 60 days 191 055 75 205 191 055 75 205

61 – 90 days 65 549 (28 093) 65 549 (28 093)

91 + days 1 999 158 (61 304) 1 999 158 (61 304)

Total 3 146 540 186 871 3 293 028 81 953

to an increase in sundry rentals and sundry year-end debtors

the group the other debts in total decreased with an amount of


Municipality

R’000

Group

R’000

Municipality

R’000

Group

R’000

Debits levied: Consumer debtors 5 920 710 5 991 373 5 498 619 5 577 326

Balance on 1 July 2 959 669 3 211 075 2 711 187 2 711 187

Balance on 30 June 3 146 540 3 293 028 2 959 669 3 211 075

Average balance 3 053 105 3 252 052 2 835 428 2 961 131

Turnover: Number of times (debits levied/average

debtor balance)

1,94 1,84 1,94 1,88

Days 365 365 365 365

Turnover: Number of days 188 198 188 194

Municipality was still at unacceptable levels. This high turnover

total levies for a period compared to the total payments received

during the same period is used to measure revenue recovery.

in 2006/07.

CAPITAL EXPENDITURE AND FINANCING 4.(ONLY WITH REGARD TO THE MUNICIPALITY)

The Municipality’s original approved capital expenditure budget

means of an adjustment budget approved by the Council on

61

Actual capital expenditure incurred during the year in respect of

against the adjusted budget for 2006/07. The actual expendi-

Actual capital expenditure according to asset class

Type of asset Actual 2007

R

Actual 2006

R

Infrastructure 1 089 227 810 1 213 252 166

Community 35 857 650 56 778 541

Heritage 0 947 857

Housing 61 150 290 120 631 425

Land and buildings 120 966 020 12 879 273

Other 58 642 235 145 096 290

Total 1 365 844 005 1 549 585 552

CAPITAL EXPENDITURE 2006(Municipality)

0

500

1,000

1,500

Infras truc ture C o mmunity H eritage H o us ing Land andbuildings

Other

R m

illio

n

Actual 2007 Actual 2006

Type of property, plant and equipment


Chapter 4

62


Original

budget

2007

R million

Adjusted

budget

2007

R million

Actual

2007

R million

Actual

as % of

adjusted

budget

2006 %

Actual

2006

R million

Council funding 1 194 170 1 193 170 1 041 958 87 883 078

Provincial grants and subsidies 20 100 25 707 17 377 68 35 560

Government Housing Grant 273 723 130 000 86 304 66 373 051

Municipal Infrastructure Grant (MIG) 205 944 205 944 184 824

90

195 555

National Electricity Regulator (NER) 25 000 28 600 28 629

100

8 895

Other funding 5 830 6 830 6 752 99 53 447

Total 1 724 767 1 590 251 1 365 844 86 1 549 586

PROPERTY, PLANT AND EQUIPMENT FUNDINGSOURCES 2006/07 (Municipality)

0

300

600

900

Councilfunding

Grants andsubsidies

Housing MIG Other NER

Funding source

R m

illio

n

Adjusted budget

Actual

When comparing the actual expenditure to the budgeted

aspects:

Depreciation

The raising of loans

The Municipality had minimal control over the commencement

by those sources and which had to be included in the budget

63

ACCOUNTING RATIOS5.

5.1 OPERATING CAPITAL RATIO

erating cycle of a local authority. Operating capital represents

the surplus of current assets over current liabilities. This is a

useful indicator when determining the ability to fund operating

expenditure. This ratio measures the extent to which the cur-

rent liabilities are covered by the current assets. A larger cover-

short-term assets. The following table shows the calculation of

the operating capital ratio:


Municipality

R’000

Group

R’000

Municipality

R’000

Group

R’000

CURRENT ASSETS

Cash 69 349 261 106 18 812 240 360

Inventory 165 944 209 738 108 466 124 747

Debtors 2 479 055 2 503 499 2 459 431 2 561 989

Investments 969 958 1 033 013 858 112 911 564

Short-term portion of long-term debtors 27 840 27 840 16 321 16 321

Total 3 712 146 4 035 196 3 461 142 3 854 981

CURRENT LIABILITIES

Creditors 2 099 438 2 248 157 2 000 998 2 168 759

Short-term portion of long-term liabilities 232 569 249 521 59 411 75 328

Deposits 257 579 257 579 236 092 236 092

Provisions 0 2 318 0 4 460

Overdrawn bank account 46 002 46 002 29 715 29 721

Total 2 635 588 2 803 577 2 326 216 2 514 360

Net operating capital 1 076 558 1 231 619 1 134 926 1 340 621

Operating capital ratio 1,41:1 1,44:1 1,49:1 1,53:1

cribed to the increase in investments as well as an increase in

inventory and debtors. The increase in current liabilities mainly

lay with the increase in the short-term portion of long-term liabili-

in trade creditors and deposits.

5.2 QUICK ASSET RATIO (ACID TEST)

This ratio is a more accurate test of a local authority’s ability

The private sector regards a ratio of 1:1 as being acceptable.


Municipality

R’000

Group

R’000

Municipality

R’000

Group

R’000

Current assets 3 712 146 4 035 196 3 461 142 3 854 981

Less: Inventory 165 944 209 738 108 466 124 747

Total 3 546 202 3 825 458 3 352 676 3 730 234

Current liabilities 2 635 588 2 803 577 2 326 216 2 514 360

Quick asset ratio 1,35:1 1,36:11 1,44:1 1,48:1


Chapter 4

64


5.3 SOLVABILITY

long term. A ratio of less than one is an indication of insolvency. The following table shows the calculation of the solvency ratio:


Municipality

R’000

Group

R’000

Municipality

R’000

Group

R’000

TOTAL ASSETS

Current assets 3 712 146 4 035 196 3 461 142 3 854 981

Long-term receivables 357 848 359 354 294 668 294 669

Property, plant and equipment 8 235 388 8 683 199 7 458 749 7 932 429

Biological assets 11 015 11 015 10 459 10 459

Total 12 316 397 13 088 764 11 225 018 12 092 538

TOTAL LIABILITIES

Current liabilities 2 635 588 2 803 577 2 326 216 2 514 360

Plus: Outstanding loans 2 602 026 3 137 492 2 138 733 2 680 339

Non-current provisions 5 263 5 263 2 869 2 869

Accumulated funds 6 285 833 6 288 888 6 233 172 6 249 345

Total 11 528 710 12 235 220 10 700 990 11 446 913

Solvability ratio 1,07:1 1,07:1 1,05:1 1,06:1

5.4 TOTAL LONG-TERM DEBT TO TOTAL REVENUE

RATIO

2006. This increase could be ascribed to the increase in ex-


Municipality

R’000

Group

R’000

Municipality

R’000

Group

R’000

Total debt 2 834 595 3 387 013 2 198 143 2 755 667

Total revenue 8 604 455 8 793 692 8 204 120 8 433 932

Ratio 32,94 % 38,52 % 26,79 % 32,67 %

5.5 INVENTORY TURNOVER (ONLY WITH REGARD

TO THE MUNICIPALITY)

large municipalities.

purchases between October 2005 and May 2006. Departments

had to use the inventory that was already in the stores and were

two power stations.

65

5.6 OVERDRAFT (CASH BOOK BALANCE) PLUS SHORT-TERM LOANS TO TOTAL OPERATING REVENUE


Municipality

R’000

Group

R’000

Municipality

R’000

Group

R’000

Cash book balance (overdraft) 46 002 46 002 29 715 29 721

Short-term loans 232 569 249 521 59 410 75 328

278 571 295 523 89 125 105 049

Total revenue 8 604 455 8 793 692 8 204 120 8 433 932

Ratio 3,23% 3,36% 1,09% 1,25%

5.7 CASH TO INTEREST COVERAGE

follows:


Municipality

R’000

Group

R’000

Municipality

R’000

Group

R’000

Cash generated from operations (net cash flow) 1 059 563 1 113 464 1 152 473 1 291 060

Interest paid on external loans 314 136 387 774 266 630 284 046

Ratio 3,37:1 2,87:1 4,32:1 4,54:1

5.8 DEBT TO CASH RATIO


Municipality

R’000

Group

R’000

Municipality

R’000

Group

R’000

Long-term debt 2 834 595 3 387 013 2 198 143 2 755 667

Cash generated from operations 1 059 563 1 113 464 1 152 473 1 291 060

Ratio 2,68:1 3,04:1 1,91:1 2,13:1


Chapter 4

66


5.9 FINANCING TO CAPITAL EXPENDITURE RATIO


Municipality

R’000

Group

R’000

Municipality

R’000

Group

R’000Increase/(decrease) in long-term loans 636 453 631 346 277 201 479 973

Cash used in capital expenditure 1 335 222 1 349 145 1 549 586 1 687 970

Ratio 0,48:1 0,47:1 0,18:1 0,28:1

A ratio smaller than 1:1 is an indication that more cash is spent

6. CREDIT RATING

lowing rating was awarded to the City of Tshwane (stable rating

Long term - A+ (single A plus): High credit quality. Protec-

tion factors are good. However, risk factors are more vari-

able and greater in periods of economic stress.

Short term - A1 (single A one): Very high certainty of time-

ly payment. Liquidity factors are excellent and supported

by good fundamental protection factors. Risk factors are

minor.

7. MUNICIPAL ENTITIES

relevant legislation. The entities that were incorporated prior to

the amalgamation of the erstwhile municipalities into the City

of Tshwane Metropolitan Municipality were not controlled by

the relevant departments as the case should have been. This

entities towards the City of Tshwane.

The status of the municipal entities is followed up on a continuous

7.1 VIABLE MUNICIPAL ENTITIES

Of the entities evaluated the following were found to be viable

and the process of restructuring them to be compliant with the

Civirelo Water

7.2 ENTITIES NOT VIABLE AND TO BE LIQUIDATED

The following companies were not viable:

7.3 DEREGISTRATION OF MUNICIPAL ENTITIES

67

Tswaing Crater Museum

7.4 ERROR IN LISTING AS MUNICIPAL ENTITY

The following companies were erroneously listed as municipal

entities under the control of the City of Tshwane Metropolitan

Municipality:

regulation of all city improvement districts.

The following company was erroneously listed as a municipal

entity under the control of the City of Tshwane Metropolitan

Municipality:

on municipal entities.

7.5 CONSOLIDATION OF MUNICIPAL ENTITIES

Civirelo Water

8. CHALLENGES EXPERIENCED DURING 2006/07

8.1 IMPLEMENTATION OF ACCOUNTING STAND-

ARDS

The City of Tshwane experienced problems with the imple-

mentation of certain accounting standards and therefore had

these exemptions are explained in paragraph 1 of the Consoli-

Treasury during October 2007.


CITY OF TSHWANE METROPOLITAN MUNICIPALITY

CONSOLIDATED ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED

30 JUNE 2007

REGISTERED OFFICE:

anager:

Munitoria

Auditors:

Bankers:

Legal form: Local authority/metropolitan municipality

Operations and principal activities:

The City of Tshwane is a local authority and renders a municipal

service to the community.

Legislation governing the Municipality’s operations:

entities

Controlling entity: City of Tshwane

ernment’s determination in accordance with this Act.

GENERAL INFORMATION

69

A. ENTITIES CONSOLIDATED

statements:

The budgets of the above entities were not consolidated as

most of the budgets were not available.

B. ENTITIES NOT CONSOLIDATED

zette 29773 of 13 April 2007:


C. ERRORS IN LISTING AS MUNICIPAL ENTITY

The following companies were erroneously listed as municipal

entities under the control of the City of Tshwane:

be left as is in the interim.

porated. The error will be corrected in line with the new section

ENTITIES

70


1. BASIS OF PRESENTATION

unless stated otherwise.

GRAP 1 Presentation of financial statements

GRAP 2 Cash flow statements

GRAP 3 Accounting policies, changes in accounting estimates and

errors

GAMAP 4 The effects of changes in foreign exchange rates

GAMAP 6 Consolidated financial statements and accounting for controlled

entities

GAMAP 7 Accounting for investments in associates

GAMAP 8 Financial reporting of interests in joint ventures

GAMAP 9 Revenue

GAMAP 12 Inventories

GAMAP 17 Property, plant and equipment

GAMAP 19 Provisions, contingent liabilities and contingent assets

aspects or parts of them. Details of the exemptions applicable to the City of Tshwane are listed below.

STANDARD NO STANDARD TITLE EXTENT OF EXEMPTION FROM STANDARD EXEMPTION PERIOD

GRAP 3 Accounting policies,

changes in accounting

estimates and errors

Identification and impact of GRAP standards that have been issued but are not yet effec-

tive and changes to accounting policies (paragraphs 14, 19 and 30 to 31)

For the 2006/07 and 2007/08

financial years

GAMAP 17 Property, plant and equip-

ment (PPE)

Review of useful life of items of PPE recognised in the annual financial statements

(paragraphs 59 to 61 and 77)

For the 2006/07 and 2007/08

financial years

GAMAP 17 Property, plant and equip-

ment (PPE)

Review of depreciation method applied to PPE recognised in the annual financial state-

ments (paragraphs 62 and 77)

For the 2006/07 and 2007/08

financial years

Impairment of non-cash-generating assets (paragraphs 64 to 69 and 75(e)(v) to (vi))

Impairment of cash-generating assets (paragraphs 63 and 75(e)(v) to (vi))

IAS 39 (AC 128) Impairment of assets Entire standard For the 2006/07 and 2007/08

financial years

GAMAP 12 Inventories The entire standard relative to the immovable capital assets inventory that has been ac-

counted for in terms of GAMAP 17

For the 2006/07 and 2007/08

financial years

ACCOUNTING POLICIESFOR THE YEAR ENDED 30 JUNE 2007

71

The entire standard relative to water stock that has not been purchased by the City of

Tshwane

For the 2006/07 and 2007/08

financial years

IAS 40

(AC 135)

Investment property The entire standard relative to property that has been accounted for in terms of GAMAP

17

For the 2006/07 and 2007/08

financial years

Disclosure of the fair value of investment property if the cost model has been applied

and where the City of Tshwane has recognised the investment property in terms of this

standard (paragraphs 79(e)(i) to (iii))

For the 2006/07 and 2007/08

financial years

IAS 17

(AC 105)

Leases Recognising operating lease payments or receipts on a straight-line basis if the amounts

have been recognised on the basis of the cash flows in the lease agreement (SAICA

circular 12/06, paragraphs 8 to 11, and paragraphs 33, 34, 50 and 51 of IAS 17

For the 2006/07 and 2007/08

financial years

IAS 38

(AC 129)

Intangible assets The entire standard except for the recognition, measurement and disclosure of computer

software and website costs (SIC 32/AC 432) – all other costs have been expensed

For the 2006/07 and 2007/08

financial years

IAS 19

(AC 116)

Employee benefits Defined benefit accounting relative to defined benefit plans accounted for as defined

contribution plans and the defined benefit obligation disclosed by narrative information

(paragraphs 29, 48 to 119, 120A(c) to (q))

For the 2006/07 and 2007/08

financial years

GAMAP 9 Revenue Initial measurement of fair value, discounting all future receipts using an imputed rate of

interest (SAICA circular 09/06 and paragraph 12)

For the 2006/07 and 2007/08

financial years

IAS 39

(AC 133)

Financial instruments:

Recognition and meas-

urement

Initial measuring of financial assets and financial liabilities at fair value (SAICA circular

09/06, paragraph 43, AG 70, AG 64 and AG 85 of IAS 39/AC 133)

For the 2006/07 and 2007/08

financial years

IFRS 5

(AC 142)

Non-current assets held

for sale and discontinued

operations

Classification, measurement and disclosure of non-current assets held for sale (para-

graphs 6 to 14, 15 to 29 (relative to non-current assets held for sale) and 39 to 42)

For the 2006/07 and 2007/08

financial years

IFRS 7

(AC 144)


Disclosure

Entire standard to be replaced by IAS 32 (AC 125), issued August 2006 and effective for

financial statements covering periods beginning on or after 1 January 1998

For the 2006/07 and 2007/08

financial years

IAS 14

(AC 115)

Segment reporting Entire standard For the 2006/07 and 2007/08

financial years

IFRS 8

(AC 145)

Operating segments Entire standard For the 2006/07 and 2007/08

financial years

IAS 11

(AC 109)

Construction contracts Entire standard For the 2006/07 and 2007/08

financial years

IFRS 3

(AC 140)

Business combinations Entire standard For the 2006/07 and 2007/08

financial years

IAS 20

(AC 134)

Accounting for

government grants and

disclosure of government

assistance

Entire standard excluding paragraphs 24 and 26, paragraph 25 of GAMAP 17 and para-

graphs 42 to 46 of GAMAP 9

For the 2006/07 and 2007/08

financial years

72


2. BASIS OF CONSOLIDATION

account for the City of Tshwane’s share of the net assets and

post-acquisition results of these investments.

the municipal entities it controls.

The results for the municipal entities that were acquired or

disposed of during the year were included in the consolidated

acquisition or up to the effective date of disposal.

nicipal entities were adjusted to bring the accounting policies

used by them in line with those used by the City of Tshwane and

other municipal entities included in the group.

3. PRESENTATION CURRENCY

est rand.

4. GOING CONCERN ASSUMPTION

were being liquidated.

5. PROPERTY, PLANT AND EQUIPMENT (PPE)

5.1 FIXED ASSETS

accumulated depreciation where assets have been acquired

by grant or donation.

measured at the carrying amount of the asset.

asset would probably be enhanced in excess of the originally

the original best estimate of the expected useful life of the as-

and was expensed. The enhancement of an existing asset so

that its use was expanded and the further development of an

asset so that its original life was extended were examples of

subsequent expenditure that could be capitalised.

5.2 DEPRECIATION

cost over the estimated useful lives of the assets. The deprecia-

tion rates were based on the following estimated useful lives

(unless a technical assessment of an individual asset conclud-

Years

Infrastructure

30

30

20-30

Water 15-20

15-20

30

Community

30

20-30

5

Leased assets 22

Other

20-30

10

Other vehicles 5

3-7

7-10

Watercraft 15

5

10-15

Other plant and equipment 2-5

Chapter 4


73

item was calculated as the difference between the sales pro-

ceeds and the carrying value and was recognised in the state-

to its recoverable amount and an impairment loss was charged

5.2.1 Heritage assets

the improvements were registered as subassets and the useful

tion of the subasset that was capitalised against the heritage

asset.

5.2.2 Land

5.2.3 Incomplete construction work

preciation only began when the asset was commissioned.

5.3 DISPOSAL OF PROPERTY, PLANT AND EQUIP-

MENT

The difference between the carrying amount of assets (cost

formance.

6. INVESTMENT PROPERTY

depreciation and accumulated impairment losses.

Owner-occupied properties were held for production and ad-

ministrative purposes. This distinguished owner-occupied

properties from investment properties.

A gain or loss arising from a change in fair value was included

it arose.

7. INVENTORY

goods were valued at the lower of cost and net realisable

valued at the lower of cost and current replacement cost.

Unsold properties were valued at the lower of cost and net

realisable value on a weighted average cost basis. Direct costs

Cost also included a portion of overhead costs.

version and other costs incurred in bringing the inventory to its

present location and condition.

written down from cost to net realisable value with regard to

their estimated economic or realisable values. Consumables

nised as an expense in the period in which the related revenue

was recognised. The amount of any write-down of inventories to

net realisable value and all losses of inventories were recognised

as an expense in the period the write-down or loss occurred.

as a reduction in the amount of inventories recognised as an

expense in the period in which the reversal occurred.

8. CREDITORS

8.1 TRADE CREDITORS

Trade creditors were stated at their nominal value.

74


8.2 ACCRUED LEAVE PAY

Liabilities for annual leave were recognised as they accrued to

9. RESERVES

The City of Tshwane created and maintained reserves in terms

9.1 CAPITAL REPLACEMENT RESERVE (CRR)

used. The cash could only be invested in accordance with

the investment policy of the City of Tshwane.

formance.

City of Tshwane but not for their maintenance.

amount equal to the cost price of the asset purchased was

used to offset depreciation charged on assets purchased

9.2 CAPITALISATION RESERVE

certain funds created in terms of the provincial ordinances

purpose of this reserve was to promote consumer equity by

ensuring that the future depreciation expenses that would be

9.3 GOVERNMENT GRANT RESERVE

community equity by ensuring that the future depreciation

items funded by a government grant were offset by transfers

9.4 SELF-INSURANCE RESERVE

account the claims history and replacement value of the insured

assets.

Contributions to and from the reserve were transferred via

the statement of changes in net assets to the reserve in line

with the amount provided for in the operating budget.

The total amounts of insurance premiums paid to external

insurers were regarded as expenses and had to be shown

Chapter 4


75

Claims received from external insurers were used in the

assets and were therefore effectively recorded in the state-

city required an agreed method was adopted. The calculation of

account in determining this surplus capacity:

of the highest service delivery asset to determine the short-

capacity would be built up to cover that asset through the

Determining the annual premium contribution to reach the

Applying a probability and affordability factor to the ideal

premium contribution to determine the budgeted premium

pose of this reserve was to promote consumer equity by ensur-

ing that the future depreciation expenses that would be incurred

9.5 COID RESERVE

ployees.

cumulated surplus based on the statutory rate of contributions

deemed necessary to ensure that the balance of the reserve

was adequate to offset potential claims.

Claims were paid as determined by the Compensation Com-

formance. Claims were settled by transferring a corresponding

the statement of changes in net assets.

9.6 DONATIONS AND PUBLIC CONTRIBUTIONS

9.7 CAPITAL RESERVE ACCOUNT

costs of upgrades etc required by the operating agreement.

9.8 DEBT SERVICE RESERVE ACCOUNT

into the distribution account for use in the repayment of the term

loan.

76


9.9 OPERATING RESERVE ACCOUNT

ment of operating costs in respect of the water project.

10. HOUSING DEVELOPMENT FUND

the City of Tshwane maintain a separate housing operating

housing operating account and be used by the City of Tshwane

for housing development subject to the approval of the member

Any contributions to or from the fund were shown as trans-

fers in the statement of changes in net assets.

nancial performance and could be transferred via the state-

11. PROVISIONS

ably.

amount of a provision was the present value of the expenditure

expected for settling the obligation.

11.1 CLEARING OF ALIEN VEGETATION

to be phased in.

11.2 CLEANING UP OF ILLEGAL DUMPING

The City of Tshwane was cleaning up illegal dumping sites con-

dumping sites.

11.3 LANDFILL SITES

The City of Tshwane had an obligation to rehabilitate its land-

made for this.

12. RETIREMENT BENEFITS

12.1 PENSION, PROVIDENT AND RETIREMENT

FUNDS

The City of Tshwane and its employees contributed to various

the rules of the funds. The funds performed regular actuarial

valuations. The City of Tshwane accounted for pension funds in

contributions disclosed.

The contributions were charged against the operating account

of the City of Tshwane at a percentage of the basic salary paid

a pension fund were recognised as an expense when incurred.

A provision was raised as the best estimate of the current cost of

paying future pensions to employees who had become disabled

as a result of injuries on duty.

Chapter 4


77

12.2 MEDICAL AID: CONTINUED MEMBERS

The City of Tshwane provided certain post-retirement medical

tired members of the City of Tshwane. According to the rules

of the medical aid funds with which the City of Tshwane was

liable for a certain portion of the medical aid membership fee.

The City of Tshwane accounted for medical aid in terms of the

2007 in which no provision was issued but only the contribu-

tions disclosed.

13. ACCOUNTS RECEIVABLE

Accounts receivable were carried at anticipated realisable

value. An estimate was made for doubtful receivables based

Amounts for arrangements with consumer debtors were classi-

The annual contribution was determined by calculating the

percentage contribution was calculated during the budget

process each year and reviewed at year-end.

14. LEASES

14.1 THE CITY OF TSHWANE AS LESSEE

and rewards associated with ownership of an asset were trans-

and the corresponding liabilities were raised. The cost of the

line basis over its estimated useful life. Lease payments were

costs were expensed when incurred.

Operating leases were leases that did not fall in the scope of the

straight-line basis over the period of the lease.

The City of Tshwane did not incur a foreign currency lease liabil-

14.2 THE CITY OF TSHWANE AS LESSOR

sale agreements were recorded as receivables at the amount

lease or instalment sale income was allocated to accounting

City of Tshwane’s net investment outstanding for the leases or

instalment sale agreements.

straight-line basis over the term of the lease.

15. FINANCIAL INSTRUMENTS

accounting.

Hedging

had a legally enforceable right to set off the recognised

intended to settle on a net basis or realise the asset and

settle the liability simultaneously.

transferred asset and the associated liability.


Derecognition

ing liability would be recognised for that servicing contract.

in its entirety but the transfer resulted in the acquisition of a

servicing liability would be recognised at fair value.

or loss.

sured at fair value on the contract date and were remeasured to

under interest-rate swap contracts were recognised in the state-

was the fair value of the consideration given. The fair value was

Transaction costs were included in the initial measurement of

es and duties. Transaction costs did not include debt premium

tive or holding costs.

entity and not held for trading were subsequently recognised

the cumulative amortisation of any difference between that ini-

for impairment or uncollectability.

15.1 INVESTMENTS

The City of Tshwane was allowed to have the following types

of investment:

has the positive intent and ability to hold the investment to

maturity.

disposal proceeds and the carrying amount was charged or

The City of Tshwane limited its counterparty exposure arising

ratings of these institutions were reviewed quarterly and invest-

ments were spread across different types of approved invest-

ment and institution.

vestment Advisory Committee.

15.2 INTEREST-BEARING BORROWINGS

performance over the period of the borrowings on an effective

interest basis.

details.


Chapter 4

79

15.3 INVESTMENT IN MUNICIPAL ENTITIES

the City of Tshwane were carried at cost in its unconsolidated

The results and assets and liabilities of municipal entities were

equity method of accounting.

Where the City of Tshwane transacted with its municipal enti-

ised gains and losses were eliminated to the extent of the City

where unrealised losses provided evidence of an impairment of

the asset transferred.

Where the City of Tshwane was no longer able to exercise con-

16. FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currencies were initially accounted for

at the rate of exchange on the date of the transaction. Trade

creditors denominated in foreign currency were reported at the

of creditors or from the reporting of creditors at rates different

from those at which they were initially recorded during the pe-

riod were recognised as revenue or as expenses in the period

in which they arose.

Where the transaction was covered by a forward exchange con-

Tshwane did not incur a foreign currency liability other than that

17. REVENUE RECOGNITION

from trading activities and other services provided.

measurement of fair value at a discounted rate.

17.1 REVENUE FROM EXCHANGE TRANSACTIONS

17.1.1 Service charges relating to electricity, water and

sanitation

were based on consumption. Meters were read and billed on a

monthly basis and revenue was recognised when invoiced.

made monthly. The estimates of consumption were recognised

as revenue when invoiced. Adjustments to estimates of con-

sumption were made in the invoicing period when meters were

read. These adjustments were recognised as revenue in the

invoicing period.

17.1.2 Services provided on a prepayment basis

17.1.3 Interest earned on outstanding debtors

portionate basis.

17.1.4 Dividends

Dividends were recognised when the right to receive payment

was established.

17.1.5 Income from agency services

basis once the income collected on behalf of agents had been

ment with the agency.

17.1.6 Housing rental and instalments

in advance.

portionate basis.


17.1.7 Sale of goods

rewards of ownership of the goods to the buyer.

The City of Tshwane would retain neither continuing mana-

gerial involvement to the degree usually associated with

ownership nor actual control over the goods sold.

The amount of revenue could be measured reliably.

The costs incurred or to be incurred in respect of the trans-

action could be measured reliably.

17.1.8 Interest earned on investments

investment.

17.1.9 Collection charges

Collection charges were recognised when such amounts were

incurred.

17.2 REVENUE FROM NON-EXCHANGE

TRANSACTIONS

17.2.1 Revenue from rates

of property and rebates were granted subject to certain condi-

tions. A composite rating system charging different rate tariffs

ratepayer.

17.2.2 Regional Establishment Levy and Regional Services

Levy

by all registered levypayers. Owing to the reliable measurement

of the amount and the stage of completion of the transaction at

17.2.3 Fines

tial associated with the transaction would accrue to the City

the stage of completion of the transaction at the reporting

date could be measured reliably.

of the amount actually collected was received from the public

prosecutor.

17.2.4 Donations and contributions

Donations were recognised on a cash-receipt basis. Where

same way.

17.2.5 Revenue from the recovery of unauthorised, irregular,

fruitless and wasteful expenditure

certain.


Chapter 4

18. CONDITIONAL GRANTS AND RECEIPTS

ing was recognised as revenue to the extent that the City of

gations embodied in the agreement. A liability was recognised

19. BORROWING COSTS

20. VALUE-ADDED TAX

The City of Tshwane accounted for value-added tax on a cash

basis.

21. SEGMENTAL INFORMATION

of income and expenditure.

The primary basis was representative of the internal structure

for both budgeting and management purposes.

The secondary basis comprised all operations based on the

22. GRANTS-IN-AID

The City of Tshwane annually awarded grants to individuals and

ment.

expenses in the periods in which the events giving rise to the

transfers occurred.

23. AGRICULTURAL OR BIOLOGICAL ASSETS

was able to measure the fair value of the asset reliably (im-

Agricultural or biological assets were measured at fair value

costs.

24. CASH AND CASH EQUIVALENTS

change in value.

incurred.

25. UNAUTHORISED EXPENDITURE

Unauthorised expenditure was accounted for as an expense in

performance.

26. IRREGULAR EXPENDITURE

formance.

27. FRUITLESS AND WASTEFUL EXPENDITURE


28. COMPARATIVE INFORMATION

28.1 CURRENT-YEAR COMPARATIVES

the City of Tshwane only.

28.2 PREVIOUS-YEAR COMPARATIVES

29. TAXATION

The City of Tshwane was exempt from tax in terms of section


Chapter 4

CONSOLIDATED STATEMENT OF FINANCIAL POSITIONFOR THE YEAR ENDED 30 JUNE 2007

Note MUNICIPALITY GROUP

Jun 2007 Jun 2006 Jun 2007 Jun 2006

R R R R

NET ASSETS AND LIABILITIES

Net assets 7 073 519 015 6 757 199 386 7 142 430 727 6 894 969 133

Housing Development Fund 1 141 152 353 150 463 875 141 152 353 150 463 875

Capital Replacement Reserve 501 152 806 357 857 950 501 152 806 357 857 950

Capitalisation Reserve 2 008 028 104 2 177 575 289 2 008 028 104 2 177 575 289

Government Grant Reserve 3 506 835 333 3 348 292 166 3 509 888 886 3 351 244 661

Self-insurance Reserve 65 637 380 128 555 010 65 637 380 128 555 010

COID Reserve 62 694 963 70 050 967 62 694 963 70 050 967

Future Depreciation Reserve: Self-insurance 332 487 376 331 332 487 376 331

Non-Distributable Reserve 0 0 0 13 219 924

Donations 0 0 1 200 1 200

Unappropriated surplus 787 685 589 524 027 798 853 542 548 645 623 926

Non-current liabilities 2 607 289 615 2 141 601 649 3 142 755 344 2 683 208 082

Long-term liabilities 2 2 602 026 465 2 138 732 424 3 137 492 194 2 680 338 857

Clearing of alien vegetation 3 5 263 150 2 869 225 5 263 150 2 869 225

Current liabilities 2 635 588 459 2 326 216 535 2 803 577 822 2 514 360 843

Consumer deposits 5 257 579 090 236 092 389 257 579 090 236 092 389

Creditors 6 1 830 232 854 1 657 716 136 1 975 895 703 1 802 447 040

Unspent conditional grants and receipts 7 210 990 931 176 499 862 210 990 931 176 499 862

VAT 8 58 214 444 166 782 350 61 270 221 189 812 626

Bank overdraft 16 46 002 138 29 715 301 46 002 138 29 721 144

Provisions 4 0 0 2 318 467 4 459 530

Current portion of long-term liabilities 2 232 569 002 59 410 497 249 521 272 75 328 252

Total net assets and liabilities 12 316 397 089 11 225 017 570 13 088 763 893 12 092 538 058

ASSETS

Non-current assets

Property, plant and equipment 9 8 107 967 858 7 258 937 075 8 548 290 030 7 725 125 960

Investment property 9.6 2 069 866 1 678 026 9 560 523 9 168 683

Intangible assets 9.7 125 348 933 198 133 925 125 348 933 198 133 925

Biological assets: Livestock 10 11 014 558 10 458 980 11 014 558 10 458 980

Investments 11 411 283 908 482 542 837 418 075 178 535 992 829

Long-term receivables 12 357 848 009 294 668 524 359 354 060 294 668 524

Current assets 3 300 863 957 2 978 598 203 3 617 120 611 3 318 989 157

Inventory 13 165 944 195 108 465 581 209 737 781 124 747 457

Consumer debtors 14 2 044 386 698 1 985 934 178 2 047 011 821 1 999 566 163

Other debtors 14 434 668 931 473 496 368 456 486 840 562 423 325

Current portion of long-term receivables 12 27 840 367 16 320 964 27 840 367 16 320 964

Call investment deposits 11 & 16 558 674 497 375 568 880 614 937 475 375 570 877

Bank balances and cash 17 69 349 269 18 812 232 261 106 327 240 360 371

Total assets 12 316 397 089 11 225 017 570 13 088 763 893 12 092 538 058


MUNICIPALITY

2007 2006

Note Actual Adjustment budget Actual Adjustment budget

R R R R

REVENUE

Property rates 18 1 719 224 465 1 735 113 478 1 624 061 411 1 553 500 000

Service charges 19 4 201 485 187 4 246 657 264 3 874 557 374 3 927 000 000

Regional Services Levies - turnover 0 16 000 000 615 438 946 400 000 000

Regional Services Levies - remuneration 0 0 280 130 907 180 000 000

Rental of facilities and equipment 70 027 787 56 193 546 57 845 796 47 656 617

Interest earned - external investments 134 186 955 47 942 050 103 544 892 40 421 000

Interest earned - outstanding debtors 142 516 022 137 007 800 50 335 097 120 000 000

Fines (traffic fines) 38 389 834 42 742 689 22 896 150 45 060 000

Licences and permits 21 816 684 34 297 845 19 712 738 24 182 580

Government grants and subsidies 20 1 566 093 641 1 749 343 822 785 258 061 1 610 343 679

Other income 21 523 676 893 457 747 540 591 213 956 370 394 742

Public contributions 165 566 509 50 012 825 146 433 866 69 000 000

Gains on disposal of property, plant and equipment 20 915 400 14 500 000 12 992 300 0

Gain: Changes in fair value of livestock 10 555 578 0 10 458 980 0

Gains on disposal of investment 0 0 9 239 965 0

TOTAL REVENUE 8 604 454 955 8 587 558 859 8 204 120 439 8 387 558 618

EXPENDITURE

Employee-related costs 22 2 412 004 372 2 551 422 155 2 160 602 277 2 340 229 068

Remuneration of Councillors 23 45 946 048 46 762 692 34 795 326 36 219 283

Bad debts: Contribution 106 752 294 106 649 267 163 427 961 128 160 811

Bad debts: Written off - consumer and sundry debtors 86 736 741 0 169 512 894 0

Collection costs 49 538 121 50 669 138 47 409 666 47 037 274

Depreciation 558 584 032 592 729 286 509 425 753 515 238 852

Interest paid 24 314 136 306 345 899 657 266 630 167 297 000 000

Bulk purchases 25 2 130 979 261 1 989 821 178 1 853 026 444 1 854 880 000

Repairs and maintenance 42 727 352 320 674 906 579 674 270 199 425 437 435

Grants and subsidies paid 26 8 392 257 11 634 800 10 225 682 10 560 000

Loss on disposal of property, plant and equipment 9 915 217 5 525 863 0 0

General expenses 1 837 798 359 2 010 014 816 1 743 872 341 1 829 805 777

TOTAL EXPENDITURE 8 288 135 328 8 386 035 431 7 633 198 710 7 484 568 500

Net surplus for the year 316 319 627 201 523 428 570 921 729 902 990 118

Refer to Annexure E for the comparison with the

approved budget.

CONSOLIDATED STATEMENT OF FINANCIAL POSITIONFOR THE YEAR ENDED 30 JUNE 2007

(

GROUP

2007 2006

Actual Adjustment budget Actual Adjustment budget

R R R R

1 719 158 593 1 735 113 478 1 624 061 411 1 553 500 000

4 272 214 160 4 246 657 264 3 953 264 956 3 927 000 000

(38 135) 16 000 000 614 845 390 400 000 000

0 0 280 130 907 180 000 000

84 451 009 56 193 546 65 318 263 47 656 617

154 277 171 47 942 050 113 798 238 40 421 000

155 842 736 137 007 800 72 187 793 120 000 000

38 389 834 42 742 689 22 896 150 45 060 000

21 816 684 34 297 845 19 712 738 24 182 580

1 541 794 233 1 749 343 822 785 427 554 1 610 343 679

618 748 440 457 747 540 703 163 633 370 394 742

165 566 509 50 012 825 146 433 866 69 000 000

20 915 400 14 500 000 12 992 300 0

555 578 0 10 458 980 0

0 0 9 239 965 0

8 793 692 212 8 587 558 859 8 433 932 144 8 387 558 618

2 445 747 160 2 551 422 155 2 191 596 373 2 340 229 068

45 946 048 46 762 692 34 795 326 36 219 283

114 705 781 106 649 267 163 427 961 128 160 811

86 736 741 0 223 121 894 0

49 538 121 50 669 138 47 409 666 47 037 274

598 373 961 592 729 286 534 010 119 515 238 852

387 774 358 345 899 657 284 046 441 297 000 000

2 136 832 836 1 989 821 178 1 828 614 565 1 854 880 000

731 219 500 674 906 579 677 048 665 425 437 435

8 392 257 11 634 800 10 297 629 10 560 000

9 917 937 5 525 863 0 0

1 931 972 128 2 010 014 816 1 828 005 088 1 829 805 777

8 547 156 828 8 386 035 431 7 822 373 727 7 484 568 500

246 535 384 201 523 428 611 558 417 902 990 118


Housing Development

Fund

Capital Replacement

Reserve

Capitalisation Reserve

R R R

2006

Balance at 1 July 2005 115 769 796 294 729 858 2 096 886 592

Net surplus for the year

Prior year adjustments (see Note 41)

Asset purification/retirements (3 714 660)

Property, plant and equipment purchased (302 183 695) 302 183 695

Capital grants used to purchase PPE (revenue recognised)

Contribution: Workmen’s Compensation (from employees)

Transfer from Housing Development Fund (195 092)

Transfer to Housing Developoment Fund 34 889 171

Transfer from Insurance Reserve

Transfer to Capital Replacement Reserve (Tshwane Market) 19 946 098

Transfer to Capital Replacement Reserve: General 181 084 046

Transfer to Capital Replacement Reserve (public contributions) 159 186 329

Transfer to Capital Replacement Reserve: Insurance replacement 5 095 314

Offsetting of depreciation (217 780 338)

Balance at 30 June 2006 150 463 875 357 857 950 2 177 575 289

2007


Asset purification/retirements (6 162 391)

Property, plant and equipment purchased: Capitalised (94 508 184) 94 508 184



Transfer from Housing Development Fund (9 311 522)

Transfer to Housing Developoment Fund




Offsetting of depreciation (257 892 978)

Balance at 30 June 2007 141 152 353 501 152 806 2 008 028 104

The accumulated surplus of R787 685 589 was earmarked by the City of Tshwane (parent) to be used in 2007/08 for provision for employee benefits to comply with

the accounting standard as prescribed.

Note: Capitalisation Reserve

The handling of the Capitalisation Reserve differed from the guidelines of National Treasury as indicated in the specimen financial statements in the following sense:

* The amount used to finance property, plant and equipment from the Capital Replacement Reserve since the implementation of GAMAP was not transferred to the accumu-

lated surplus, but to the Capitalisation Reserve.

The reasons for this deviation were the following:

* To offset future depreciation charges via a transfer from the reserve to prevent double taxation of ratepayers;

* To prevent distortion of the accumulated surplus which could lead to utilisation other than the offsetting of depreciation;

* An accumulated surplus was not used to finance deficits on future budgets as a result of depreciation charges; and

* The financing and offsetting of depreciation of property, plant and equipment financed from the Capital Replacement Reserve had to be treated the same as property, plant

and equipment financed from the Government Grant Reserve.

The effect on the financial statements would be the following if the guidelines of National Treasury were followed:

* Accumulated surplus would increase with R94 508 184 (2005/06 = R302 183 695 and 2004/05 = R 909 806 168).

* The Capitalisation Reserve would decrease with R94 508 184 (2005/06 = R302 183 695 and 2004/05 = R909 806 168).

STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED JUNE 2007 : PARENT

Government Grant

Reserve

COID Reserve Self-insurance Reserve Self-insurance: FDR Accumulated Surplus/

(deficit)

Total

R R R R R R

3 135 576 175 64 980 064 184 096 536 420 175 293 818 461 6 186 277 657

315 352 113 315 352 113

255 569 616 255 569 616

(11 682 409) 15 397 069 0

360 156 571 360 156 571

(360 156 571) (360 156 571)

5 070 903 (5 070 903) 0

195 092 0

(34 889 171) 0

(50 446 212) 50 446 212 0

(19 946 098) 0

(181 084 046) 0

(159 186 329) 0

(5 095 314) 0

(135 758 171) (43 844) 353 582 353 0

3 348 292 166 70 050 967 128 555 010 376 331 524 027 798 6 757 199 386

316 319 629 316 319 629

(20 056 037) 26 218 428 0

0

317 833 940 (317 833 940) 0

(7 356 004) 7 356 004 0

9 311 522 0

0

0 (62 917 630) 62 917 630 0

(28 367 158) 0

(209 435 882) 0

(139 234 736) 0 (43 844) 397 171 558 0

3 506 835 333 62 694 963 65 637 380 332 487 787 685 589 7 073 519 015


Housing Develop-

ment Fund

Capital Replacement

Reserve

Capitalisation

Reserve

Government Grant

Reserve

R R R R

2006

Balance at 1 July 2005 115 769 796 294 729 858 2 096 886 592 3 135 576 175


Prior year adjustments (see Note 41)

Sandspruit ODI accumulated surplus 30 June 2005

Transfer to reserves - entities

Asset purification/retirements (3 714 660) (11 682 409)

Property, plant and equipment purchased (302 183 695) 302 183 695 360 156 571



Transfer from Housing Development Fund (195 092)

Transfer to Housing Development Fund 34 889 171


Tranfer to Capital Replacement Reserve (Tshwane Market) 19 946 098

Transfer to Capital Replacement Reserve 181 084 046

Transfer to Capital Replacement Reserve (public contributions) 159 186 329

Transfer to Capital Replacement Reserve 5 095 314

Offsetting of depreciation (217 780 338) (135 758 171)

Balance at 30 June 2006 150 463 875 357 857 950 2 177 575 289 3 348 292 166

2007


Correction of previous year accumulated surplus - entities

Correction of errors of previous years (audit adjustments - entities)

Asset purification/retirements (6 162 391) (20 056 037)

Property, plant and equipment capitalised (94 508 184) 94 508 184

Capital grants used to purchase PPE (revenue recognised) 317 833 940


Transfer from Housing Development Fund (9 311 522)




Offsetting of depreciation (257 892 978) (139 234 736)

Balance at 30 June 2007 141 152 353 501 152 806 2 008 028 104 3 506 835 333

STATEMENT OF CHANGES IN NET ASSETS FOR THE YEAR ENDED JUNE 2007 : GROUP

COID Reserve Self-insurance

Reserve

Self-insurance:

Future

Depreciation

Reserve

Roodeplaat

Temba Water

Services Trust:

Debt Service

Reserve

Roodeplaat

Temba Water

Services Trust:

Statutory

Donations Fund

Housing

Company

Tshwane: Grant

Reserve

Accumulated surplus/

(Deficit)

Total

R R R R R R R R

64 980 064 184 096 536 420 175 13 219 924 1 200 3 053 553 374 063 627 6 282 797 500

355 988 801 355 988 801

255 569 616 255 569 616

714 274 714 274

(101 058) 0 (101 058)

15 397 069 0

360 156 571

(360 156 571) (360 156 571)

5 070 903 (5 070 903) 0

195 092 0

(34 889 171) 0

(50 446 212) 50 446 212 0

(19 946 098) 0

(181 084 046) 0

(159 186 329) 0

(5 095 314) 0

(43 844) 353 582 353 0

70 050 967 128 555 010 376 331 13 219 924 1 200 2 952 495 645 623 926 6 894 969 133

246 535 384 246 535 384

926 210 926 210

(13 219 924) 101 058 13 118 866 0

26 218 428 0

0

(317 833 940) 0

(7 356 004) 7 356 004 0

9 311 522 0

(62 917 630) 62 917 630 0

(28 367 158) 0

(209 435 882) 0

(43 844) 397 171 558 0

62 694 963 65 637 380 332 487 0 1 200 3 053 553 853 542 548 7 142 430 727

90


MUNICIPALITY GROUP

Note 2007 2006 2007 2006

R R R R

CASH FLOW FROM OPERATING ACTIVITIES

Cash receipts from ratepayers, government and

other

8 250 794 113 7 880 427 088 8 675 983 601 8 040 847 579

Cash paid to suppliers and employees (7 191 230 665) (6 727 953 848) (7 562 519 840) (6 749 787 604)

Cash generated from/(utilised by) operations 28 1 059 563 448 1 152 473 240 1 113 463 761 1 291 059 975

Interest received 134 186 955 103 544 892 154 277 171 113 798 238

Interest paid (314 136 306) (266 630 167) (387 774 358) (284 046 441)

NET CASH FROM OPERATING ACTIVITIES 879 614 097 989 387 965 879 966 574 1 120 811 772

CASH FLOW FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment (1 335 221 663) (1 549 585 552) (1 349 144 879) (1 687 969 982)

Gain: Change in fair value of livestock (555 578) (10 458 980) (555 578) (10 458 980)

Proceeds on disposal of fixed assets 20 915 400 12 992 300 20 915 400 13 053 663

Proceeds on disposal of investments - 9 239 965 - 9 239 965

Decrease/(increase) in non-current loans (76 594 615) 47 597 720 (78 100 666) 47 597 720

Decrease/(increase) in non-current investments 71 258 929 (30 997 759) 117 917 651 (78 087 387)

NET CASH FROM INVESTING ACTIVITIES (1 320 197 527) (1 521 212 306) (1 288 968 072) (1 706 625 001)

CASH FLOW FROM FINANCING ACTIVITIES

New loans raised/(repaid) 636 452 546 277 201 058 631 346 357 479 973 468

Increase in consumer deposits 21 486 701 (4 392 536) 21 486 701 (4 392 536)

NET CASH FROM FINANCING ACTIVITIES 657 939 247 272 808 522 652 833 058 475 580 932

NET CASH FLOW 217 355 817 (259 015 819) 243 831 560 (110 232 297)

NET INCREASE/(DECREASE) IN CASH AND

CASH EQUIVALENTS

217 355 817 (259 015 819) 243 831 560 (110 232 297)

Cash and cash equivalents at the beginning of the

year

29 364 665 811 623 681 630 586 210 104 696 442 401

Cash and cash equivalents at the end of the year 29 582 021 628 364 665 811 830 041 664 586 210 104

CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2007 – GROUP

91

DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

1 HOUSING DEVELOPMENT FUND

Housing Development Fund 141 152 353 150 463 876 141 152 353 150 463 876

Unappropriated surplus 210 158 816 219 470 339 210 158 816 219 470 339

Loans extinguished by government on 1 April 1998 69 006 463 69 006 463 69 006 463 69 006 463

The Housing Development Fund was represented by the following assets

and liabilities:

Housing selling scheme loans 103 434 420 97 667 737 103 434 420 97 667 737

Other debtors 9 961 181 7 912 349 9 961 181 7 912 349

Bank and cash 27 756 752 44 883 790 27 756 752 44 883 790

Total Housing Development Fund assets and liabilities 141 152 353 150 463 876 141 152 353 150 463 876

2 LONG-TERM LIABILITIES

Local registered stock 315 714 882 314 780 812 315 714 882 314 780 812

Long-term loans: 2 518 880 585 1 883 362 109 3 071 298 584 2 440 886 297

Annuity loans 1 906 549 057 1 257 690 062 1 906 549 057 1 257 690 062

Term loans 612 331 528 625 672 047 1 136 935 795 1 164 079 818

Capitalised lease liability 0 27 813 732 19 116 417

2 834 595 467 2 198 142 921 3 387 013 466 2 755 667 109

Less: Current portion transferred to current liabilities 232 569 002 59 410 497 249 521 272 75 328 252

Local registered stock 0 0 0 0

Annuity loans 77 569 002 46 185 641 77 569 002 46 185 641

Term loans 155 000 000 13 224 856 171 952 270 29 142 611

Total external loans 2 602 026 465 2 138 732 424 3 137 492 194 2 680 338 857

Refer to Annexure A for more detail on long-term liabilities.

Amount invested specifically for the repayment of long-term liabilities

(see Note 29 for more detail) 634 478 486 559 653 150 634 478 486 559 653 150

Maturity value of amount invested as security for long-term liabilities 1 201 630 598 1 244 224 512 1 201 630 598 1 244 224 512

Roodeplaat Temba Water Services Trust:

Capitalised lease liability: City of Tshwane

Lease liabilities are effectively secured as the rights to the leased assets

revert to the lessor in the event of default, subject to the cession of the lease

agreement as security for the bank borrowings.

Finance lease liabilities: Minimum lease payments:

Not later than 1 year 2 040 808 171 377

Later than 1 year and not later than 5 years 2 141 411 2 394 417

Later than 5 years 23 631 513 23 956 838

27 813 732 26 522 632

NOTES TO THE CONSOLIDATED ANNUAL FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 JUNE 2007

92


DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

Term loans are secured by:

1. A general notarial bond over the movable assets of the Trust. 2. Cession of the Temba Lease Agreement. 3. The Debt Service Reserve Account, the Capital

Reserve Account and the Operating Reserve Account. These loans are repayable six-monthly over 15 years.

Housing Company Tshwane

A secured loan bearing interest at 14% a year from National Housing Finance Corporation Ltd - repayable in 240 monthly instalments. Secured by a mortgage bond

over the investment property with a book value of R7 490 657 plus a cession of all banking accounts, debtors books, all risk insurance policies.

Interest-free loan convertible to a grant on meeting certain criteria from the Gauteng Partnership Fund with a book value of R293 000.

3 NON-CURRENT PROVISIONS

3.1 CLEARING OF ALIEN VEGETATION

Opening balance at the beginning of the year 2 869 225 0 2 869 225 0

Contributions during the year 6 292 554 2 869 225 6 292 554 2 869 225

Expenditure during the year (3 898 629) 0 (3 898 629) 0

Closing balance at the end of the year 5 263 150 2 869 225 5 263 150 2 869 225

In terms of the Conservation of Agricultural Resources Act, 1983 (Act 43 of

1983), the provision for the clearing of alien vegetation was established in

2005/06 as a start to address the backlogs that existed. The provision would

be phased in over a period of time.

3.2 REHABILITATION OF LANDFILL SITES

No provision for the rehabilitation of the landfill sites was made as no

backlog currently existed. The rehabilitation was done as part of normal

repair and maintenance. (See paragraph 11.3 of the Group Accounting

Policies.)

4 CURRENT PROVISIONS

Performance bonus 2 318 467 1 964 363

Special projects 0 2 495 167

2 318 467 4 459 530

4.1 RECONCILIATION OF CURRENT PROVISIONS

4.1.1 Performance bonus

Balance at the beginning of the year 1 964 363 0

Contributions to provision 354 104 1 964 363

Utilisation of provision 0 0

Balance at the end of the year 2 318 467 1 964 363

4.1.2 Special projects

Balance at the beginning of the year 2 495 167 0

Contributions to provision 0 7 810 176

Utilisation of provision (2 495 167) (5 315 009)

Balance at the end of the year 0 2 495 167


93

DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

5 CONSUMER DEPOSITS

Electricity and water 257 579 090 236 092 389 257 579 090 236 092 389

Guarantees held for electricity and water deposits 115 829 785 93 626 411 115 829 785 93 626 411

6 CREDITORS

Trade creditors 1 084 161 577 1 026 813 126 1 100 698 980 1 035 778 785

Payments received in advance 6 147 161 6 997 383 100 858 338 110 374 496

Retentions 80 391 743 68 291 428 90 378 713 76 687 870

Staff leave accrual 226 880 894 195 073 278 226 885 121 195 088 738

Deposits 14 845 980 10 552 337 16 667 509 10 552 337

Other creditors 417 805 499 349 988 584 440 407 042 373 964 814

Total creditors 1 830 232 854 1 657 716 136 1 975 895 703 1 802 447 040

7 UNSPENT CONDITIONAL GRANTS AND RECEIPTS

7.1 Conditional grants from other spheres of government 198 708 969 170 698 389 198 708 969 170 698 389

Municipal Infrastructure Grant (MIG) 19 794 905 0 19 794 905 0

Housing projects 25 714 685 3 873 808 25 714 685 3 873 808

Department of Water Affairs and Forestry (DWAF) 22 391 328 13 990 911 22 391 328 13 990 911

Finance Management Grant (FMG) 1 503 403 3 121 266 1 503 403 3 121 266

Municipal System Improvement Grant (MSIG) 3 000 000 5 000 000 3 000 000 5 000 000

Restructuring Grant 78 921 695 102 292 860 78 921 695 102 292 860

Department of Provincial and Local Government HIV/Aids Operational Grant 0 5 443 600 0 5 443 600

Transportation and Engineering 8 000 000 6 616 440 8 000 000 6 616 440

Department of Public Works 7 322 068 8 722 068 7 322 068 8 722 068

Transport: World Cup Soccer 24 150 000 13 150 000 24 150 000 13 150 000

National Lottery Fund Operational Grant 5 780 000 0 5 780 000 0

Provincial Local Economic Development Projects Grant 2 130 885 8 487 436 2 130 885 8 487 436

7.2 Other conditional receipts 12 281 962 5 801 473 12 281 962 5 801 473

National Electrification Fund 4 025 783 4 054 573 4 025 783 4 054 573

Bontle ke Botho 177 223 360 000 177 223 360 000

Gauteng: Agriculture, Conservation and Environment 8 078 956 460 000 8 078 956 460 000

Gauteng: Tourism 0 400 000 0 400 000

Gauteng: Library and Information 0 526 900 0 526 900

Total conditional grants and receipts 210 990 931 176 499 862 210 990 931 176 499 862

See Note 19 for reconciliation of grants from other spheres of government.

These amounts are invested until utilised.

94


DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

8 VAT

VAT payable 58 214 444 166 782 350 61 270 221 189 812 626

VAT is payable on a receipt basis. Only once payment is received from

debtors is VAT paid over to SARS.

9 PROPERTY, PLANT AND EQUIPMENT

Reconciliation of carrying values

9.1 INFRASTRUCTURE

Carrying value at 1 July 4 572 768 786 3 641 750 954 4 578 920 873 3 647 269 273

Cost 6 450 648 987 5 237 396 821 6 457 836 217 5 243 314 147

Accumulated depreciation - cost (1 877 880 201) (1 595 645 867) (1 878 915 344) (1 596 044 874)

Acquisitions 158 454 454 720 912 186 160 620 367 721 545 954

Additions 217 828 990 493 541 052 220 862 011 494 810 956

Capital under construction 250 981 817 506 954 620 250 981 817 506 954 620

Depreciation - based on cost (310 356 353) (279 583 486) (311 223 461) (280 219 622)

Carrying value of purifications/transfers 598 304 434 210 105 646 598 304 434 210 105 646

Cost 471 770 408 212 756 494 471 770 408 212 756 494

Accumulated depreciation - cost 126 534 026 (2 650 848) 126 534 026 (2 650 848)

Carrying value at 30 June 5 329 527 674 4 572 768 786 5 337 845 674 4 578 920 873

Cost 7 391 230 202 6 450 648 987 7 401 450 453 6 457 836 217


9.2 COMMUNITY

Carrying value at 1 July 212 730 759 188 785 942 212 730 759 188 785 942

Cost 389 646 613 332 868 072 389 646 613 332 868 072

Accumulated depreciation - cost (176 915 854) (144 082 130) (176 915 854) (144 082 130)

Acquisitions (36 296 493) (6 768 052) (36 296 493) (6 768 052)

Additions 6 900 014 5 424 497 6 900 014 5 424 497

Capital under construction (22 463 288) 5 937 251 (22 463 288) 5 937 251


Carrying value of purifications/transfers (3 755 695) 30 712 869 (3 755 695) 30 712 869

Cost (10 624 739) 45 416 793 (10 624 739) 45 416 793


Carrying value at 30 June 172 678 571 212 730 759 172 678 571 212 730 759

Cost 363 458 600 389 646 613 363 458 600 389 646 613



95

DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

9.3 HERITAGE


Cost 3 221 102 2 273 245 3 221 102 2 273 245

Accumulated depreciation - cost 0 (273 937) 0 (273 937)

Acquisitions 0 947 857 0 947 857

Additions 0 947 857 0 947 857

Capital under construction 0 0 0 0

Depreciation - based on cost 0 0 0 0

Carrying value of purifications/transfers (18 628) (273 937) (18 628) (273 937)

Cost (18 628) 0 (18 628) 0



Cost 3 202 474 3 221 102 3 202 474 3 221 102


9.4 HOUSING


Cost 227 228 983 106 597 558 227 228 983 106 597 558


Acquisitions (61 060 788) 119 316 606 (61 060 788) 119 316 606

Additions 0 (22 445) 0 (22 445)

Capital under construction (59 745 969) 120 653 870 (59 745 969) 120 653 870


Carrying value of purifications/transfers 0 0 0 0

Cost (32 330) 0 (32 330) 0

Accumulated depreciation - cost 32 330 0 32 330 0


Cost 167 450 684 227 228 983 167 450 684 227 228 983


9.5 OTHER


Cost 838 961 627 804 926 064 1 305 612 005 1 136 081 469


96


DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

Acquisitions (67 340 624) (143 723 432) (93 350 046) (34 356 647)

Additions 23 771 923 53 649 325 34 672 435 189 627 042

Capital under construction 39 967 354 (70 791 394) 39 967 354 (70 791 394)


Carrying value of purifications/transfers/disposals (3 324 753) 40 478 540 (4 940 241) 40 417 176

Cost (113 288 913) 51 177 632 (113 288 913) 50 962 895



Cost 789 411 991 838 961 627 1 266 962 881 1 305 612 005


9.6 INVESTMENT PROPERTY

Carrying value at 1 July 1 678 026 371 109 9 168 683 7 861 766

Cost 1 707 296 383 906 9 197 953 7 874 563

Accumulated depreciation - cost (29 270) (12 797) (29 270) (12 797)

Acquisitions 391 840 366 780 391 840 366 780

Additions 450 000 383 253 450 000 383 253


Depreciation - based on cost (58 160) (16 473) (58 160) (16 473)

Carrying value of purifications/transfers/disposals 0 940 137 0 940 137

Cost 0 940 137 0 940 137

Accumulated depreciation - cost 0 0 0 0


Cost 2 157 296 1 707 296 9 647 953 9 197 953

Accumulated depreciation - cost (87 430) (29 270) (87 430) (29 270)

The Municipality was still busy with the purification of the property, plant

and equipment register. Therefore the values reflected under investment

properties might be a misrepresentation of the actual asset situation. Most

investment properties were still included under land and buildings.

9.7 INTANGIBLE ASSETS


Cost 198 133 925 88 396 588 198 133 925 88 396 588



97

DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

Acquisitions (40 089 559) (1 978 255) (40 089 559) (1 978 255)

Additions 171 421 15 701 335 171 421 15 701 335



Carrying value of purifications/transfers/disposals 6 918 652 94 036 003 6 918 652 94 036 003

Cost 9 718 652 94 036 003 9 718 652 94 036 003

Accumulated depreciation - cost (2 800 000) 0 (2 800 000) 0


Cost 208 023 998 198 133 926 208 023 998 198 133 926


9.8 CAPITALISED LEASED ASSETS

Carrying value at 1 July 0 0 16 654 454 17 523 382

Cost 0 0 19 116 417 19 116 417

Accumulated depreciation - cost 0 0 (2 461 963) (1 593 035)

Acquisitions 0 (493 671) (868 928)

Additions 0 0 0 0


Depreciation - based on cost 0 0 (493 671) (868 928)

Carrying value of purifications/transfers/disposals 0 0 (1 287 087) 0

Cost 0 0 (1 477 352) 0

Accumulated depreciation - cost 0 0 190 265 0

Carrying value at 30 June 0 14 873 696 16 654 454

Cost 0 0 17 639 065 19 116 417

Accumulated depreciation - cost 0 0 (2 765 369) (2 461 963)

9.9 LAND AND BUILDINGS


Cost 2 217 320 600 2 204 441 326 2 221 991 279 2 204 540 771


Acquisitions 66 185 420 25 859 647 67 504 250 29 792 315

Additions 120 966 020 95 858 950 122 433 056 100 430 184




DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

Carrying value of purifications/transfers 158 269 371 (48 065 607) 158 269 371 (48 065 607)

Cost 148 819 665 (82 979 677) 148 819 665 (82 979 677)

Accumulated depreciation - cost 9 449 706 34 914 070 9 449 706 34 914 070


Cost 2 487 106 285 2 217 320 599 2 493 244 000 2 221 991 278


9.10 TOTAL


Cost 10 326 869 134 8 777 283 580 10 831 984 495 9 141 062 830


Acquisitions 20 244 250 714 933 338 (2 773 789) 827 997 631

Additions 370 088 368 665 483 824 385 488 949 807 302 679

Capital under construction 208 739 914 562 754 347 208 739 914 562 754 347


Carrying value of purifications/transfers 756 393 381 328 481 525 753 490 496 328 420 162

Cost 506 344 115 321 347 382 504 866 753 321 132 645

Accumulated depreciation - cost 250 049 266 7 134 143 248 623 743 7 287 517


Cost 11 412 041 531 10 326 869 133 11 931 080 111 10 832 252 501


Refer to Annexure B (for analysis per class) and Annexure C (for a

segmental analysis)

Upon implementation of GAMAP 17 on 1 July 2004, all assets in the capital

ledger were transferred to the asset register in the format of globular assets

per asset class/type. Individual assets were shown in the asset register, but

with a nil value as the value was reflected in the globular asset.

A process has been approved by the Council for the purification of these

globular assets in line with the individual assets. The Municipality is now in

year three of a three-year cycle to purify the data of the fixed asset register.

All new assets acquired since 1 July 2004 were recognised and depreciated

individually as per the requirements of GAMAP 17.

Note must be taken that no revaluation and/or impairment of assets could be

undertaken until the purification was finalised.


99

DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

The purification entails the following:

Compilation of policies and procedures, revision of asset class structure and

modification of business processes to ensure compliance with GAMAP 17

Analysis of capital ledger transactions to ensure correct recording thereof

on the fixed asset register

Complete verification and take-up of the physical assets with the assistance

of the departments

Purification of the fixed asset register by merging the two sets of data with

the assistance of the departments

A tender was awarded to a firm to assist in the purification process.

This process was only finalised by the end of October/November 2007.

10 BIOLOGICAL ASSETS: LIVESTOCK

Carrying amount at the beginning of the year 10 458 980 0 10 458 980 0

Gain: Changes in fair value due to physical changes and price changes 555 578 10 458 980 555 578 10 458 980

Carrying amount at the end of the financial year 11 014 558 10 458 980 11 014 558 10 458 980

11 INVESTMENTS

11.1 HELD-TO-MATURITY INVESTMENTS

Listed:

Stock 0 5 000 000 0 5 000 000

Unlisted:

Shares (a contract is in place with a specific maturity date) 1 128 029 1 128 029

Municipal stock 6 056 959 6 056 959 6 056 959 6 056 959

7 184 988 6 056 959 7 184 988 6 056 959


Fixed deposits 398 992 765 466 780 248 405 784 035 520 230 240

Insurance companies 5 106 155 4 705 630 5 106 155 4 705 630

404 098 920 471 485 878 410 890 190 524 935 870

Total held-to-maturity investments 411 283 908 482 542 837 418 075 178 535 992 829

11.2 AVAILABLE-FOR-SALE INVESTMENTS

Short-term deposits and call deposits 558 674 497 375 568 880 614 937 475 375 570 877

TOTAL INVESTMENTS 969 958 405 858 111 717 1 033 012 653 911 563 706

Market value of listed investments, and management’s valuation of unlisted

investments:

Listed investments 0 5 000 000 0 5 000 000

Unlisted investments 969 958 405 853 111 717 1 033 012 653 906 563 706

No impairment occurred during the financial year.

100


DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

Average rate of return on long-term investments: 13,30%

(2005/06 = 13,25%)

Average rate of return on short-term investments: 8,50%

The Municipal Finance Management Act, 2003 (Act 56 of 2003), requires

local authorities to invest funds, which are not immediately required, with

prescribed institutions and the period should be such that it will not be

necessary to borrow funds against the investment at a penalty interest rate

to meet commitments.

IMPAIRMENT GAIN/LOSS ON INVESTMENTS

During the 2005/06 financial year Tswaing Electricity Project (Pty) Ltd and

Lebone Municipal Finance Corporation were liquidated.

Impairment gain: Tswaing Electricity Project (Pty) Ltd 0 9 239 965 0 9 239 965

Impairment loss: Lebone Municipal Finance Corporation 0 (100) 0 (100)

No amount was received from Lebone Municipal Finance Corporation.

12 LONG-TERM RECEIVABLES

Consumers: Arrangement debtors 220 595 717 143 061 938 220 595 717 143 061 938

Housing loans 103 434 420 97 667 736 103 434 420 97 667 736

Motor car loans 8 080 676 20 383 146 8 080 676 20 383 146

Loans to sports clubs 1 729 108 1 786 494 1 729 108 1 786 494

Computer loans 65 3 821 65 3 821

Study loans 15 546 23 096 15 546 23 096

Sale of land 69 882 327 64 217 013 69 882 327 64 217 013

Samrand Development (Pty) Ltd 18 152 564 18 152 564 18 152 564 18 152 564

Loan to Botselo Water: Sandspruit 0 0 1 506 051 0

421 890 423 345 295 808 423 396 474 345 295 808

Less: Current portion transferred to current receivables 27 840 367 16 320 964 27 840 367 16 320 964

394 050 056 328 974 844 395 556 107 328 974 844

Less: Provision for bad debt: Housing loans 36 202 047 34 306 320 36 202 047 34 306 320

Total long-term receivables 357 848 009 294 668 524 359 354 060 294 668 524

RECONCILIATION OF BAD DEBT PROVISION

Balance at the beginning of the year 34 306 320 0 34 306 320 0

Contributions to provision 1 895 727 34 306 320 1 895 727 34 306 320

Balance at the end of the year 36 202 047 34 306 320 36 202 047 34 306 320


101

DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

CONSUMERS: ARRANGEMENT DEBTORS

A policy exists that grants consumer debtors an opportunity to make arrangements to pay off their arrear debt over a certain period.

HOUSING LOANS

Housing loans are granted to qualifying individuals in terms of the Provincial Administration’s Housing Programme. These loans attract interest of 13,5% per annum

and are repayable over periods of 20 and 30 years. These loans have various terms.

MOTOR CAR LOANS

Senior staff were entitled to motor car loans at an interest of 8,5% per annum which were repayable over a maximum period of six years. This practice was termi-

nated in terms of the MFMA and the last loan would be fully repaid in October 2009.

LOANS TO SPORTS CLUBS

Sports clubs that qualified, signed a 99-year leasehold agreement with the Municipality at a nominal amount and were provided with financial assistance from

the Municipality to build or improve a facility, the funds being repayable over a period. The club would have no claim to the improvements after the expiry of the

leasehold agreement, though.

COMPUTER LOANS

Staff were entitiled to an interest-free computer loan which was repayable over a period of five years. This practice was terminated in terms of the MFMA and the

last loan would be fully repaid in 2009.

STUDY LOANS

Employees were entitled to interest-free study loans which were repayable over a period of one year after the completion of their studies. This practice was termi-

nated in terms of the MFMA. The last payment could not be determined as some of the employees were still studying.

Children of employees of the Municipality also qualified for study loans at an interest rate applicable during the period of application as determined by the

Municipality at the time of the application. No more new study loans were issued by the Municipality.

SALE OF LAND DEBTORS

Vacant properties were sold through a process administered by Property Legal Services. Contracts were signed and advices for the opening of individual accounts,

which indicated the amount of the deposit (10%) and VAT (14%) were issued. The contract stipulated as from when interest was payable (immediately after sign-

ing the contract or after 12 months). The interest rate used was the Municipality’s mortgage bond rate which was 11%. Interest was calculated monthly on the

outstanding balance of the property.

SAMRAND DEVELOPMENT (PTY) LTD

This debtor refers to the long outstanding consumer debt of Samrand.

LOAN TO BOTSELO WATER (SANDSPRUIT)

This loan was unsecured and interest free and without specific terms of repayment.

102


DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

13 INVENTORY

Stock represented consumable stock, raw materials, work in progress and

finished goods. Where necessary specific provision was made for obsolete

stock. 140 829 697 103 038 372 184 623 283 119 320 248

Quarry 501 539 281 373 501 539 281 373

Coal (power stations) 22 031 408 2 244 533 22 031 408 2 244 533

Plants 99 379 75 415 99 379 75 415

Bulk water 2 482 172 2 825 889 2 482 172 2 825 889

Net inventory 165 944 195 108 465 582 209 737 781 124 747 458

14 CONSUMER DEBTORS

The City of Tshwane (parent) had a consolidated account billing system.

The division of debtors per service category was done on a pro rata basis

based on the levies. The provision for bad debt was therefore also not

available per income group.

Service debtors 3 146 540 369 2 959 669 372 3 293 028 331 3 211 074 853

Rates 694 221 969 831 081 071 694 221 969 831 081 071

Electricity 1 352 679 005 1 163 640 622 1 352 679 005 1 163 640 622

Water 679 889 865 580 090 538 826 377 827 831 496 019

Sewerage 169 777 929 144 602 857 169 777 929 144 602 857

Refuse removal 249 971 601 240 254 284 249 971 601 240 254 284

Less: Arrangement debtors 220 595 716 143 061 938 220 595 716 143 061 938

2 925 944 653 2 816 607 434 3 072 432 615 3 068 012 915

Less: Provision for bad debt 881 557 955 830 673 256 1 025 420 794 1 068 446 752

Consumer debtors per balance sheet 2 044 386 698 1 985 934 178 2 047 011 821 1 999 566 163

The Council approved an amount of R100 777 966 to be written off for the

parent. However, only R86 736 741 (2006: R168 492 129) was written off

as bad debt by the parent municipality. This represented 1,01% (2006:

2081%) of the total operating income for the year of the parent municipality.

Ageing: Total

Current (0 - 30 days) 890 777 901 689 715 136 1 037 265 863 941 120 617

31 - 60 days 191 055 500 115 850 492 191 055 500 115 850 492

61 - 90 days 65 548 626 93 641 547 65 548 626 93 641 547

91 + days 1 999 158 342 2 060 462 197 1 999 158 342 2 060 462 197

3 146 540 369 2 959 669 372 3 293 028 331 3 211 074 853

Rates: Ageing

Current (0 - 30 days) 226 797 015 113 917 075 226 797 015 113 917 075

31 - 60 days 44 312 481 35 043 713 44 312 481 35 043 713

61 - 90 days 23 153 018 23 144 317 23 153 018 23 144 317

91 + days 399 959 455 658 975 966 399 959 455 658 975 966

694 221 969 831 081 071 694 221 969 831 081 071


103

DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

Electricity: Ageing

Current (0 - 30 days) 405 700 048 363 365 851 405 700 048 363 365 851

31 - 60 days 94 168 975 42 225 333 94 168 975 42 225 333

61 - 90 days 17 724 793 41 481 404 17 724 793 41 481 404

91 + days 835 085 189 716 568 034 835 085 189 716 568 034

1 352 679 005 1 163 640 622 1 352 679 005 1 163 640 622

Water: Ageing

Current (0 - 30 days) 168 963 447 144 304 035 315 451 409 395 709 516

31 - 60 days 36 569 219 26 752 755 36 569 219 26 752 755

61 - 90 days 16 514 682 18 901 690 16 514 682 18 901 690

91 + days 457 842 517 390 132 058 457 842 517 390 132 058

679 889 865 580 090 538 826 377 827 831 496 019

Sanitation: Ageing

Current (0 - 30 days) 39 039 899 32 182 355 39 039 899 32 182 355

31 - 60 days 7 949 450 4 284 728 7 949 450 4 284 728

61 - 90 days 3 406 292 3 702 793 3 406 292 3 702 793

91 + days 119 382 288 104 432 981 119 382 288 104 432 981

169 777 929 144 602 857 169 777 929 144 602 857

Solid waste: Ageing

Current (0 - 30 days) 50 277 491 35 945 820 50 277 491 35 945 820

31 - 60 days 8 055 375 7 543 965 8 055 375 7 543 965

61 - 90 days 4 749 841 6 411 342 4 749 841 6 411 342

91 + days 186 888 894 190 353 157 186 888 894 190 353 157

249 971 601 240 254 284 249 971 601 240 254 284

Summary of consumer debtors by customer classification:

Household 2 048 397 780 2 104 324 923 2 194 885 742 2 355 730 404

Industrial/commercial 814 953 956 600 812 883 814 953 956 600 812 883

National and Provincial Government 72 370 428 50 314 379 72 370 428 50 314 379

Other 210 818 205 204 217 187 210 818 205 204 217 187

Total consumer debtors by customer classification 3 146 540 369 2 959 669 372 3 293 028 331 3 211 074 853


Balance at the beginning of the year 830 673 256 703 785 974 1 068 446 752 703 785 974

Contributions to provision 50 884 699 126 887 282 (43 025 958) 364 660 778

Balance at the end of the year 881 557 955 830 673 256 1 025 420 794 1 068 446 752

104


DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

15 OTHER DEBTORS

Housing debtors 9 961 181 7 912 349 21 499 010 7 912 349

Government subsidies 7 075 000 2 820 000 7 075 000 2 820 000

RSC levies debtor 236 729 088 326 736 740 236 729 088 326 736 740

Amounts paid in advance 50 826 104 11 032 54 415 928 76 654 046

Other current debtors 231 044 616 183 011 437 245 905 087 195 413 146

535 635 989 520 491 558 565 624 113 609 536 281

Less: Provision for bad debt 100 967 058 46 995 190 109 137 273 47 112 956

Total other debtors 434 668 931 473 496 368 456 486 840 562 423 325


Balance at the beginning of the year 46 995 190 86 540 713 46 995 190 86 540 713

Correction of balance of 2004/05 0 (41 779 882) 0 (41 779 882)

Contributions to provision 53 971 868 2 234 359 62 142 083 2 352 125

Balance at the end of the year 100 967 058 46 995 190 109 137 273 47 112 956

16 CALL INVESTMENT DEPOSITS

Other deposits/call investments

Other deposits of R418 739 211 (2006 = R357 857 950) were ring-fenced

and attributable to the Capital Replacement Reserve of R501 152 806.

Fixed deposits amounting to R634 478 486 (2006 = R559 653 150) were

also ring-fenced for the purposes of repaying long-term liabilities. Refer to

Note 30. 558 674 497 375 568 880 614 937 475 375 570 877

17 BANK, CASH AND OVERDRAFT BALANCES

The Municipality (parent) had the following bank accounts:

17.1 Current account (primary bank account)

Standard Bank - Primary account (41 080 1453)

Standard Bank - Cashier deposit account (41 080 1569)

Standard Bank - Wonderboom Airport account (41 080 1674)

Standard Bank - Collection account (41 080 1658)

Absa - Main account (4060 738 263)

Absa - SAP collection account (4061 025 439)

Absa - Old main account (4053 381 912)

Absa - Pretoria collection account (4053 381 857)

Absa - Centurion collection account (4053 486 168)

Absa - Akasia collection account (4053 388 003)

Absa - GPMC collection account (4048 828 191)

Absa - Housing collection account (4054 433 297)


105

DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

Absa - Wonderboom Airport account (4059 414 365)

FNB Main - Pretoria branch account (5142 0107 207)

FNB - Pretoria collection account (5142 0108 130)

FNB - Centurion collection account (6202 7802 869)

FNB - Akasia collection account (6202 7803 023)

FNB - Housing collection account (5142 1127 486)

FNB - SAP collection account (6207 4177 786)

FNB - Traffic collection account (6206 7460 586)

ABSA

Cash book balance at the beginning of the year - overdrawn (29 715 301) (38 962 372) (29 715 301) (38 962 372)

Cash book balance at the end of the year - overdrawn 15 413 275 (29 715 301) 15 413 275 (29 715 301)

Bank statement balance at the beginning of the year 60 295 912 56 479 853 60 295 912 56 479 853

Bank statement balance at the end of the year 17 907 552 60 295 912 17 907 552 60 295 912

FNB

Cash book balance at the beginning of the year 3 509 343 2 498 456 3 509 343 2 498 456

Cash book balance at the end of the year (2 374) 3 509 343 (2 374) 3 509 343



STANDARD BANK (opened 1 July 2006)

Cash book balance at the beginning of the year 0 0 0

Cash book balance at the end of the year - overdrawn (45 999 764) (45 999 764) 0

Bank statement balance at the beginning of the year 0 0 0

Bank statement balance at the end of the year 38 863 430 38 863 430 0

17.2 Insurance contingency (opened 1 July 2005)

ABSA account (4062593950)

Cash book balance at the beginning of the year 7 972 921 0 7 972 921 0

Cash book balance at the end of the year 41 285 499 7 972 921 41 285 499 7 972 921

Bank statement balance at the beginning of the year 7 972 921 0 7 972 921 0


106


DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

17.3 Tshwane Market (primary account)

FNB - Church Square branch account (51421161509)

Cash book balance at the beginning of the year 7 073 890 6 442 133 7 073 890 6 442 133

Cash book balance at the end of the year 12 408 157 7 073 890 12 408 157 7 073 890



17.4 Petty cash/cashiers floats 242 338 256 078 247 262 261 061

17.5 BANK ACCOUNTS: MUNICIPAL ENTITIES

17.5.1 Roodeplaat/Temba Water Services Trust

Absa - Current account (4058159742)

Cash book balance at the beginning of the year 39 183 111 1 074 955

Cash book balance at the end of the year 36 772 659 39 183 111

Bank statement balance at the beginning of the year 39 183 111 1 074 955

Bank statement balance at the end of the year 36 772 659 39 183 111

Absa - Deposit account - Roodeplaat account (4059250408)





Absa - Debt Service Reserve account (4058337269)





Absa - Deposit account - Temba account (405832325)





Absa - Operating Reserve account (4058337073)

Cash book balance at the beginning of the year 501 538 1 114

Cash book balance at the end of the year 543 094 501 538

Bank statement balance at the beginning of the year 500 338 1 114

Bank statement balance at the end of the year 543 094 500 338


107

DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

Absa - Capital Reserve account (4058337358)

Cash book balance at the beginning of the year 10 000 341 (1 786 802)


Bank statement balance at the beginning of the year 10 000 341 (85)


17.5.2 Trade Point Pretoria






17.5.3 Sandspruit Works Waste Water Treatment






17.5.4 Sandspruit Works ODI Water

Standard Bank - Current account (032250738000)





Standard Bank - Current account (031906842000)




Bank statement balance at the end of the year 0 439 551

Standard Bank - Call account (738717959002)


Cash book balance at the end of the year 0 14 197




DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R



Cash book balance at the end of the year 0 618 109








17.5.5 Enterprise South Africa


Cash book balance at the beginning of the year 0 (5 843)

Cash book balance at the end of the year 0 (5 843)



17.5.6 Civirelo Water






17.5.7 Housing Company Tshwane




Bank statement balance at the beginning of the year 3 742 286 990 484


17.5.8 Tshwane Centre for Business Information and Support







109

DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

18 PROPERTY RATES

Actual income 1 719 224 465 1 624 061 411 1 719 158 593 1 624 061 411

Site values as at 1 July

Residential 14 495 588 615 15 451 995 608 14 495 588 615 15 451 995 608

Other 6 837 110 872 9 369 325 676 6 837 110 872 9 369 325 676

Total property valuation 21 332 699 487 24 821 321 284 21 332 699 487 24 821 321 284

(The decrease in the valuation since 2005/06 was due to the

reconciliation between the VAL system and the SAP billing system

which was started during 2006/07.)

The last valuation came into effect on 1 July 2002. Rates were levied on the

site valuations. A rebate was granted to owners of special dwellings. Per-

sons of 65 years or older, and physically or mentally handicapped persons

who could substantiate receipt of a social pension, and persons certified

by the Medical Officer of Health as physically or mentally handicapped,

could qualify for a rebate, subject to certain other conditions. The tariff was

13,48c/R (2005/06 = 12,72c/R).

19 SERVICE CHARGES

Sale of electricity 2 664 517 715 2 513 150 345 2 664 157 955 2 513 101 970

Sale of water 1 036 700 846 905 434 503 1 107 789 579 984 016 492

Refuse removal 250 699 662 240 037 915 250 699 662 240 037 915

Sewerage and sanitation charges 249 566 964 215 934 611 249 566 964 216 108 579

Total service charges 4 201 485 187 3 874 557 374 4 272 214 160 3 953 264 956

110


DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

20 GOVERNMENT GRANTS AND SUBSIDIES

Equitable share 1 002 649 865 261 870 276 1 002 649 865 261 870 276

Housing: Municipality 0 0 692 552 2 668 663

Magalies Water 0 0 8 040 1 348 465

Sandspruit: Department of Water Affairs and Forestry 0 0 0 15 921 068

Provincial health subsidies 21 498 600 10 911 995 21 498 600 10 911 995

Provincial ambulance subsidy 31 199 756 30 641 169 31 199 756 30 641 169

National Safety Grant 418 718 756 565 418 718 756 565

Provincial motor vehicle licences refund 58 252 483 51 325 305 58 252 483 51 325 305

Capex: Grants and donations 317 833 940 360 156 572 317 833 940 360 156 572

Opex: Grants and donations 3 471 779 1 530 458 3 471 779 1 530 458

Finance Management Grant 2 117 862 2 955 963 2 117 862 2 955 963

Restructuring Grant 48 371 166 42 549 758 48 371 166 42 549 758

Municipal Systems Infrastructure Grant 2 000 000 0 2 000 000 0

DWAF Grant (parent) 14 264 950 2 150 000 14 264 950 2 150 000

Topstructure grants 39 014 522 0 39 014 522 0

IMEI Grant 0 410 000 0 410 000

RTWST Grant 25 000 000 20 000 000 0 0

Ntsika 0 0 0 151 797

SEDA 0 0 0 79 500

Total government grants and subsidies 1 566 093 641 785 258 061 1 541 794 233 785 427 554

20.1 Equitable share

In terms of the Constitution, this grant was used to subsidise the provision

of basic services to indigent community members. All registered indigents

received a monthly subsidy which was funded from this grant.

Total amount of equitable share received 1 002 649 865 261 870 276 1 002 649 865 261 870 276

Monthly grant received by all registered indigents 168 166 168 166

20.2 Provincial health subsidies

Balance unspent at beginning of year 0 0 0 0

Current year receipts - included in public health vote 21 498 600 10 911 995 21 498 600 10 911 995

Conditions met - transferred to revenue (21 498 600) (10 911 995) (21 498 600) (10 911 995)

Conditions still to be met - transferred to liabilities (see Note 7) 0 0 0 0

The Municipality rendered health services on behalf of the provincial govern-

ment. This grant was used exclusively to fund clinic services (included in the

social development vote in Annexure D). The conditions of the grant were

met. There was no delay or withholding of the subsidy.


111

DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

Percentage of expenditure incurred refunded = 16,20%

20.3 Provincial ambulance subsidy


Current year receipts - included in emergency medical services vote 31 199 756 30 641 169 31 199 756 30 641 169


Conditions still to be met - transferred to liabilities (see Note 7) 0 0 0 0

The Municipality rendered ambulance services on behalf of the provincial

government and was reimbursed. This grant was used exclusively to fund

the rendering of ambulance services (included in the emergency medical

services vote in Annexure D). The conditions of the grant were met. There

was no delay or withholding of the subsidy.

Percentage of expenditure incurred refunded = 70,49%

20.4 MIG

Balance unspent at beginning of year 0 38 042 268 0 38 042 268

Current year receipts 205 944 000 155 019 913 205 944 000 155 019 913


Conditions still to be met - transferred to liabilities (see Note 7) 19 794 905 0 19 794 905 0

This grant was used to construct roads and sewerage infrastructure as

part of capital expenditure (included in the roads and sewerage votes in

Annexure B). No funds were withheld.

20.5 FINANCE MANAGEMENT GRANT

Balance unspent at beginning of year 3 121 266 3 077 229 3 121 266 3 077 229

Current year receipts 500 000 3 000 000 500 000 3 000 000


Conditions still to be met - transferred to liabilities (see Note 7) 1 503 403 3 121 266 1 503 403 3 121 266

This grant was funded by National Treasury to assist local government pilot

municipalities with financial management and budget reforms, as part of the

national reform programme. No funds were withheld.

20.6 MUNICIPAL SYSTEMS IMPROVEMENT GRANT


Current year receipts 0 3 000 000 0 3 000 000

Conditions met - transferred to revenue (2 000 000) 0 (2 000 000) 0


112


DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

This grant was used to assist municipalities in building in-house capacity to

perform their functions and stabilise institutional and governance systems as

required in the Local Government: Municipal Systems Act of 2000. No funds

were withheld.

20.7 RESTRUCTURING GRANT


Current year receipts 25 000 000 65 000 000 25 000 000 65 000 000



This grant was funded by National Treasury to assit local government pilot

municipalities with institutional, financial and economic restructuring in

line with the City Development Strategy, which was aligned to the National

Government’s Development Strategy. No funds were withheld.

20.8 DEPARTMENT OF WATER AFFAIRS AND FORESTRY


Current year receipts 22 399 000 0 23 091 552 4 388 663



This grant was received for the supply of water services for community

upliftment.

20.9 CITY OF TSHWANE METROPOLITAN MUNICIPALITY (HOUSING

COMPANY)

Balance unspent at beginning of year 0 0

Current year receipts 156 444 0

Conditions met - transferred to revenue (156 444) 0

Conditions still to be met - transferred to liabilities (see Note 7) 0 0

This grant was received for the administration and operation of Housing

Company Tshwane.

20.10 GAUTENG PROVINCIAL GOVERNMENT: HOUSING


Current year receipts 0 0

Conditions met - transferred to revenue 0 (22 767 419)


This grant was received for the installation of sanitation, water and roads for

communal benefit.

20.11 MAGALIES WATER


Current year receipts 8 040 1 348 465


113

DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

Conditions met - transferred to revenue (8 040) (1 348 465)


This grant was received for the installation of water services for communal

benefit.

20.12 SANDSPRUIT: DEPARTMENT OF WATER AFFAIRS AND FORESTRY


Current year receipts 0 15 921 068

Conditions met - transferred to revenue 0 (15 921 068)


This grant was received for the refurbishment at the Klipgat and Temba

Waste Water Treatment Plants.

114


DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

20.13 Changes in levels of government grants

Based on the allocations set out in the Division of Revenue Act (Act 1 of

2007), no significant changes in the level of government grant funding were

expected over the forthcoming three financial years.

21 OTHER INCOME

Drain-cleaning fees 1 211 073 1 082 283 1 211 073 1 082 283

Reconnections fees 62 458 097 19 336 395 62 458 097 19 336 395

Sewerage fees: Industrial effluent 19 071 458 15 904 897 19 071 458 15 904 897

Interest on housing sales 12 845 341 7 802 403 12 845 341 7 802 403

Interest on property sales 3 534 827 5 054 322 3 534 827 5 054 322

Reminder fees 12 816 235 5 264 524 12 816 235 5 264 524

Ambulance fees 3 048 946 2 352 944 3 048 946 2 352 944

Airside income 2 405 526 1 689 516 2 405 526 1 689 516

Connection fees: Urban areas 7 136 538 6 600 830 7 136 538 6 600 830

Disconnection investigation fees 0 14 795 291 0 14 795 291

Cemetery fees 3 662 486 2 473 798 3 662 486 2 473 798

Fees for relaxation of building line 2 249 467 1 276 604 2 249 467 1 276 604

Building plan fees 37 801 683 34 807 691 37 801 683 34 807 691

Library fines 1 091 704 1 148 275 1 091 704 1 148 275

Restaurant sales 1 590 920 1 489 921 1 590 920 1 489 921

Sundry fees 4 492 746 11 140 239 4 492 746 11 140 239

Income from grave services 3 861 237 3 721 529 3 861 237 3 721 529

Application fees 3 967 200 3 461 865 3 967 200 3 461 865

Connection fees 22 789 593 22 161 026 22 789 593 22 161 026

Approval fees: Advertisements 18 071 202 11 813 765 18 071 202 11 813 765

Discount on promp payments 18 986 536 12 337 723 18 986 536 12 337 723

Market fees 58 483 778 51 263 922 58 483 778 51 263 922

Lodging fees 1 289 166 1 008 045 1 289 166 1 008 045

Parking fees: Vehicles 2 666 683 2 182 549 2 666 683 2 182 549

Training fees recovered 8 927 123 16 265 946 8 927 123 16 265 946

Dumping fees 13 155 331 7 205 581 13 155 331 7 205 581

Income from bulk containers 26 939 459 24 191 144 26 939 459 24 191 144

Sale of livestock 15 888 29 361 15 888 29 361

Sale of stone 3 474 334 4 038 088 3 474 334 4 038 088

Sale of unusable stock 4 656 164 3 359 926 4 656 164 3 359 926

Sales: Aeroplane fuel 16 402 250 21 822 197 16 402 250 21 822 197

Transport fees 44 180 382 38 612 706 44 180 382 38 612 706

Capital income recovered from insurance claims 475 510 20 359 957 475 510 20 359 957

Claims recovered from Compensation Commissioner 12 606 126 11 606 567 12 606 126 11 606 567

Bad debt recovered 22 625 11 202 755 22 625 11 202 755


115

DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

Housing schemes: Sale of houses 0 31 250 221 0 31 250 221

Land sales 43 869 372 10 522 993 43 869 372 10 522 993

Miscellaneous 43 419 887 150 576 157 138 491 434 262 525 834

Total other income 523 676 893 591 213 956 618 748 440 703 163 633

22 EMPLOYEE-RELATED COSTS

Salaries and wages 1 498 980 113 1 380 012 131 1 532 722 901 1 411 006 227

Contributions to UIF, pensions and medical aids 515 389 693 422 396 813 515 389 693 422 396 813

Overtime payments 120 883 844 107 473 054 120 883 844 107 473 054

Long-service awards 7 671 604 8 114 054 7 671 604 8 114 054

Travel allowances 170 357 918 154 356 772 170 357 918 154 356 772

Housing benefits and allowances 19 697 494 20 723 638 19 697 494 20 723 638

Performance bonus 382 814 369 532 382 814 369 532

Other allowances 78 640 892 67 156 283 78 640 892 67 156 283

Total employee-related cost 2 412 004 372 2 160 602 277 2 445 747 160 2 191 596 373

REMUNERATION OF THE MUNICIPAL MANAGER

(During 2006/07 the Municipal Manager of the parent was only in office

for six months.)

Annual remuneration 381 162 705 564 381 162 705 564

Performance bonuses 65 106 163 178 65 106 163 178

Car allowance 120 000 240 000 120 000 240 000

Medical and pension fund contributions 13 860 26 172 13 860 26 172

Total 580 128 1 134 914 580 128 1 134 914

REMUNERATION OF THE CHIEF FINANCIAL OFFICER

(The CFO of the parent was only appointed on 15 November 2006, and

at a lower salary package.)

Annual remuneration 476 456 548 447 476 456 548 447

Performance bonuses 0 152 264 0 152 264

116


DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

Car allowance 88 000 100 000 88 000 100 000

Medical and pension fund contributions 13 544 90 573 13 544 90 573

Total 578 000 891 284 578 000 891 284

REMUNERATION OF STRATEGIC EXECUTIVE OFFICERS

Annual remuneration

Technical services 765 564 1 235 502 765 564 1 235 502

Corporate services 3 395 889 2 384 737 3 395 889 2 384 737

Community services 3 625 428 3 251 601 3 625 428 3 251 601

Performance bonuses

Technical services 0 195 861 0 195 861

Corporate services 69 594 254 410 69 594 254 410

Community services 570 283 542 173 570 283 542 173

Car allowance:

Technical services 90 000 238 800 90 000 238 800



Medical and pension fund contributions

Technical services 0 135 606 0 135 606



9 766 440 9 328 628 9 766 440 9 328 628

Total:

Technical services 855 564 1 805 769 855 564 1 805 769

Corporate services 4 049 789 3 076 837 4 049 789 3 076 837

Community services 4 861 087 4 446 022 4 861 087 4 446 022

9 766 440 9 328 628 9 766 440 9 328 628

23 REMUNERATION OF COUNCILLORS

Mayor’s allowance 294 068 280 764 294 068 280 764

Councillors’ allowances 30 160 657 24 608 991 30 160 657 24 608 991

Allowance of the Speaker 0 51 241 0 51 241

Councillors’ pension contributions 3 219 512 2 749 668 3 219 512 2 749 668

Travelling allowances 11 532 641 5 989 758 11 532 641 5 989 758

Councillors’ medical contributions 739 170 625 186 739 170 625 186

Councillors’ housing allowances 0 489 718 0 489 718

Total remuneration of councillors 45 946 048 34 795 326 45 946 048 34 795 326

In-kind benefits


117

DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

The Executive Mayor, Speaker and members of the Mayoral Committee

were full-time employees. Each was provided with an office and secretarial

support at the cost of the Municipality. According to the organisational

structure of the parent the Executive Mayor Protection Subsection had

40 staff members.

24 INTEREST PAID

Long-term liabilities 313 550 043 265 790 172 387 188 062 283 105 853

Bank overdrafts 586 263 839 995 586 296 940 588

Total interest on external borrowings 314 136 306 266 630 167 387 774 358 284 046 441

25 BULK PURCHASES

Electricity 1 460 232 898 1 253 088 580 1 460 729 587 1 253 122 177

Water 670 746 363 599 937 864 676 103 249 575 492 388

Total bulk purchases 2 130 979 261 1 853 026 444 2 136 832 836 1 828 614 565

26 GRANTS AND SUBSIDIES PAID

Grants-in-aid 1 066 397 1 060 000 1 066 397 1 060 000

Donations - SEDA 7 325 860 7 325 860 71 947

Grants-in-aid: Assessment rates 9 165 682 0 9 165 682

Total grants and subsidies paid 8 392 257 10 225 682 8 392 257 10 297 629

The grants-in-aid were in respect of the funding of non-governmental organi-

sations involved in empowerment programmes for the following vulnerable

groups: youth, children, women, people with disabilities and the elderly.

The Municipality awarded a grant-in-aid on the assessment rates of rateable

properties in the classes referred to in section 32A of the Local Authorities

Rating Ordinance, 1977 (Ordinance 11 of 1977), after the owner of such

property had applied to the Municipality in writing for such a grant-in-aid.

27 GENERAL EXPENSES

Included in general expenses were the following amounts above

R40 million:

Project-linked housing: Top structures 134 903 365 119 322 077 134 903 365 119 322 077

Rental of property, plant and equipment 106 333 883 87 891 464 106 333 883 87 891 464

Household refuse removal 96 024 704 51 893 667 96 024 704 51 893 667

Service providers 76 976 217 64 385 764 76 976 217 64 385 764

Insurance premiums and excesses 65 634 075 151 110 905 65 634 075 151 110 905

Telecommunication 60 019 644 46 472 166 60 019 644 46 472 166

Private sector labour 58 427 175 55 160 295 58 427 175 55 160 295

Special projects 53 149 572 32 716 608 53 149 572 32 716 608

Restructuring/transformation 48 371 166 41 745 871 48 371 166 41 745 871


DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

Rental of property 47 980 620 50 226 202 47 980 620 50 226 202

Watchmen services 45 734 451 34 338 652 45 734 451 34 338 652

Implementation: OITPS 42 983 067 0 42 983 067 0

836 537 939 735 263 671 836 537 939 735 263 671

28 CASH GENERATED BY OPERATIONS

Net surplus/(deficit) for the year 316 319 629 570 921 729 246 535 384 611 558 417

Adjustment for:

Depreciation 558 584 032 510 951 723 598 373 961 536 271 862

Depreciation corrections 0 2 353 110 0 2 353 110

Depreciation on disposals, transfers and adjustments 0 (7 134 143) 0 (7 134 143)

Gain on disposal of property, plant and equipment (20 915 400) (12 992 300) (20 915 400) (12 992 300)

Gain on disposal of investment (liquidation of municipal entities) 0 (9 239 965) 0 (9 239 965)

Contribution to provision for clearing up alien vegetation 6 292 554 2 869 225 6 292 554 2 869 225

Expenditure: Provision for clearing up alien vegetation (3 898 629) 0 (3 898 629) 0

Correction: Provision for bad-debt housing 0 (41 779 882) 0 (41 779 882)

Contribution to bad-debt provision 106 752 294 163 427 961 20 894 086 401 201 457

Provision for audit fees 0 0 0 0

Previous-year operating transactions 0 0 0 (110 882)

Transfer to reserves 101 059

Liquidation of municipal entity 0 0 825 151 0

Beneficiary distribution 0 0 0 0

Investment income (134 186 955) (103 544 892) (154 277 171) (113 798 238)

Interest paid 314 136 306 266 630 167 387 774 358 284 046 441

Operating surplus before working capital changes: 1 143 083 831 1 342 462 733 1 081 705 353 1 653 245 102

Decrease/(increase) in inventories (57 478 614) 50 202 086 (84 990 324) 34 235 940

(Increase)/decrease in debtors (109 337 219) (259 278 799) (4 419 700) (510 684 280)

(Increase)/decrease in other debtors (15 144 431) (1 743 764) 43 912 168 (10 216 556)

(Decrease)/increase in conditional grants and receipts 34 491 069 (11 063 068) 34 491 069 (11 164 126)

Increase/(decrease) in provisions 0 0 (2 141 063) 4 459 531

Increase/(decrease) in creditors 172 516 718 (39 375 385) 173 448 663 36 433 363

Increase/(decrease) in VAT (108 567 906) 71 269 437 (128 542 405) 94 751 001

Cash generated from operations 1 059 563 448 1 152 473 240 1 113 463 761 1 291 059 975

29 CASH AND CASH EQUIVALENTS

Cash and cash equivalents included in the cash flow statement comprised

the following statement of amounts indicating financial position:


119

DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

Bank balances and cash 69 349 269 18 812 232 261 100 667 240 360 187

Call investment deposits 558 674 497 375 568 880 614 937 475 375 568 880

Bank overdraft (46 002 138) (29 715 301) (45 996 478) (29 721 144)

Total cash and cash equivalents 582 021 628 364 665 811 830 041 664 586 207 923

30 UTILISATION OF LONG-TERM LIABILITIES RECONCILIATION

Long-term liabilities (see Note 2) 2 834 595 467 2 197 367 109 2 834 595 467 2 197 367 109

Used to finance property, plant and equipment - at cost 2 717 572 357 1 931 694 790 2 717 572 357 1 931 694 790

Subtotal 117 023 110 265 672 319 117 023 110 265 672 319

Cash set aside for the repayment of long-term liabilities 634 478 486 559 653 150 634 478 486 559 653 150

Cash invested for the repayment of long-term liabilities (see Note 16) (517 455 376) (293 980 831) (517 455 376) (293 980 831)

Long-term liabilities were utilised in accordance with the Municipal Finance

Management Act. Sufficient cash was set aside to ensure that long-term

liabilities could be repaid on redemption date.

31 ADDITIONAL DISCLOSURES IN TERMS OF MUNICIPAL FINANCE

MANAGEMENT ACT

31.1 CONTRIBUTIONS TO ORGANISED LOCAL GOVERNMENT

Opening balance 69 522 69 771 69 522 69 771

Council subscriptions 935 819 832 788 935 819 832 788

Amount paid - current year (857 090) (763 266) (857 090) (763 266)

Amount paid - previous years (69 522) (69 771) (69 522) (69 771)

Balance unpaid (included in creditors) 78 729 69 522 78 729 69 522

31.2 AUDIT FEES

Opening balance 0 (785 710) (39 053) (828 747)

Current year audit fee 8 692 761 3 192 349 7 678 195 2 729 024

Amount paid - current year (6 881 599) (3 192 349) (5 942 033) (2 754 024)

Amount paid - previous years 0 785 710 39 053 814 694

Balance unpaid (included in creditors) 1 811 162 0 1 736 162 (39 053)

The balance was that of the 2005/06 financial year and was paid in July

2007.

31.3 VAT

VAT inputs receivables and VAT outputs receivables are shown in Note 8.

All VAT returns were submitted by the due date throughout the financial year.

31.4 PAYE AND UIF

Opening balance 25 601 727 25 831 261 25 601 727 26 715 862

Current year payroll deductions 330 757 910 319 487 165 353 550 300 323 500 051

120


DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R


Amount paid - previous years (25 601 727) (25 831 262) (25 601 727) (25 934 217)

Balance unpaid (included in creditors) 28 010 795 25 601 727 28 012 013 26 383 373

31.5 PENSION AND MEDICAL AID DEDUCTIONS

Opening balance 0 0 0 0

Current year payroll deductions and Council contributions 646 873 547 603 264 638 646 873 547 603 264 638


Amount paid - previous years 0 0 0

Balance unpaid (included in creditors) 0 0 0 0

Amounts for 2005/06 were restated in respect of the parent due to a duplica-

tion that was only picked up in 2006/07.

31.6 COUNCILLORS’ ARREAR CONSUMER ACCOUNTS

Amounts outstanding for more than 90 days:

Aucamp M G W 6 872 0 6 872 0

Blaauw M P 8 585 0 8 585 0

Buthelezi M M 48 779 0 48 779 0

Dlamini S S 0 365 0 365

Dzumba K Y 12 741 0 12 741 0

Huma S E 0 3 368 0 3 368

Isabel Peach Family Trust 0 18 644 0 18 644

Joubert J H 0 1 354 0 1 354

Kekana K C 848 2 424 848 2 424

Kgashane S 27 159 0 27 159 0

Kwenda L H 179 0 179 0

Ledwaba D C 3 694 0 3 694 0

Makola M A 11 325 0 11 325 0

Mamabolo C S 0 8 706 0 8 706

Moagi C M 1 527 0 1 527 0

Modisakeng T B 0 340 0 340

Mogaladi M J 214 0 214 0

Mokoele D P 0 56 826 0 56 826

Monnamorwa D K S 0 9 224 0 9 224

Morudi M S 4 754 0 4 754 0

Motobatse M M 0 1 585 0 1 585

Mthetwa D 4 724 0 4 724 0

Naid A T 304 0 304 0

Ndoko E N 506 0 506 0

Ndoko G 0 3 496 0 3 496

Nkuna G and MM 0 8 547 0 8 547

Nkwashu M S 332 0 332 0


121

DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

Ramokgopa K D 5 786 0 5 786 0

Segabutla L O 684 0 684 0

Seoketsa G 27 750 24 118 27 750 24 118

Total 166 763 138 998 166 763 138 998

Councillors with payoff arrangements

Campbell A W 1 426 0 1 426 0

Dzumba K Y 1 566 0 1 566 0

Feldman J D 23 678 0 23 678 0

Huma S E 5 727 0 5 727 0

Khubeka K E and M M 0 24 333 0 24 333

Kutumela Jan 5 293 0 5 293 0

Kutumela M J 2 141 10 430 2 141 10 430

Mamabolo C S 6 714 0 6 714 0

Matjokane N Y 57 198 0 57 198 0

Morudi M S 9 470 0 9 470 0

Mthetwa D 3 728 0 3 728 0

Rambau T V 3 605 0 3 605 0

Ramokgopa G M 832 0 832 0

Segabutla L O 520 0 520 0

Swarts A P 1 664 0 1 664 0

Theron D P 5 260 0 5 260 0

Thipe S S 3 037 0 3 037 0

Thobejane P T M 2 457 0 2 457 0

Vilakazi N E 0 25 942 0 25 942

Total 134 316 60 705 134 316 60 705

122


DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

Total amount outstanding

Aucamp M G W 6 872 0 6 872 0

Blaauw M P 8 585 0 8 585 0

Buthelezi M M 48 779 0 48 779 0

Campbell A W 1 426 0 1 426 0

Dlamini S S 0 365 0 365

Dzumba K Y 14 307 0 14 307 0

Feldman J D 23 678 0 23 678 0

Huma S E 5 727 3 368 5 727 3 368

Isabel Peach Family Trust 0 18 644 0 18 644

Joubert J H 0 1 354 0 1 354

Kekana K C 848 2 424 848 2 424

Kgashane S 27 159 0 27 159 0

Khubeka K E and M M 0 24 333 0 24 333

Kutumela Jan 5 293 0 5 293 0

Kutumela M J 2 141 10 430 2 141 10 430

Kwenda L H 179 0 179 0

Ledwaba D C 3 694 0 3 694 0

Makola M A 11 325 0 11 325 0

Moagi C M 1 527 0 1 527 0

Mogaladi M J 214 0 214 0

Morudi M S 14 224 0 14 224 0

Mamabolo C S 6 714 8 706 6 714 8 706

Matjokana N Y 57 198 0 57 198 0

Modisakeng T B 0 340 0 340

Mokoele D P 0 56 826 0 56 826

Monnamorwa D K S 0 9 224 0 9 224

Motobatse M M 0 1 585 0 1 585

Mthewa D 8 452 0 8 452 0

Naid T 304 0 304 0

Ndoko E N 505 0 505 0

Ndoko G 0 3 496 0 3 496

Nkuna G and MM 0 8 547 0 8 547

Nkwashu M S 332 0 332 0

Rambau T V 3 605 0 3 605 0

Ramokgopa G M 832 0 832 0

Ramokgopa K D 5 786 0 5 786 0

Segabutla L O 1 204 0 1 204 0

Seoketsa G 27 750 24 118 27 750 24 118

Swarts A P 1 664 0 1 664 0

Theron D P 5 260 0 5 260 0

Thipe S S 3 037 0 3 037 0

Thobejane P T M 2 457 0 2 457 0

Vilakazi N E 0 25 942 0 25 942

Total arrear consumer accounts 301 078 199 703 301 078 199 703

Information regarding Councillors’ accounts in arrears for more than

90 days during the financial year was not available.


123

DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

32 CAPITAL COMMITMENTS

Commitments in respect of capital expenditure (budgeted amounts for

next financial year):

- Approved and contracted for 1 940 572 750 1 414 399 500 1 940 572 750 1 414 399 500

Infrastructure 1 489 453 000 975 024 500 1 489 453 000 975 024 500

Community 95 012 000 76 972 000 95 012 000 76 972 000

Other 124 847 750 109 080 000 124 847 750 109 080 000

Housing 231 260 000 253 323 000 231 260 000 253 323 000

- Approved but not contracted for 375 267 250 310 367 500 375 267 250 310 367 500

Infrastructure 321 887 250 139 375 000 321 887 250 139 375 000

Community 30 900 000 137 665 000 30 900 000 137 665 000

Other 7 480 000 33 327 500 7 480 000 33 327 500

Investment property 2 000 000 0 2 000 000 0

Housing 13 000 000 0 13 000 000 0

2 315 840 000 1 724 767 000 2 315 840 000 1 724 767 000

This expenditure will be financed from:

- City of Tshwane’s own funding (external loans and/or Capital Replacement

Reserve) 1 516 940 000 1 200 000 000 1 516 940 000 1 200 000 000

- Provincial grants 223 610 000 20 100 000 223 610 000 20 100 000

- Government housing 303 782 000 273 723 000 303 782 000 273 723 000

- MIG 234 108 000 205 944 000 234 108 000 205 944 000

- National Electrification Fund 37 400 000 25 000 000 37 400 000 25 000 000

2 315 840 000 1 724 767 000 2 315 840 000 1 724 767 000

33 RETIREMENT BENEFIT INFORMATION

33.1 PENSION FUNDS

Most employees of the Municipality were members of one of the following

funds and those who were not, were paid a lump-sum gratuity at retirement

age. The Municipality’s contributions to these funds are reflected as a

charge against income in the financial statements.

124


DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

DEFINED CONTRIBUTION PLANS (AS CLASSIFIED BY THE RELEVANT

FUND):

33.1.1 Tshwane Municipal Provident Fund, which was a defined contribution plan

and subject to the Pension Funds Act of 1956. The fund was not required to

be actuarially valued. No benefits could be unfunded and the Municipality

therefore had no obligation in this regard. 2 261 (19,08% ) of the

Municipality’s employees were members of this fund. The total contributions

in terms of the rules of the plan (included in employee remuneration, Note

22) amounted to: 78 931 464 Not available 78 931 464 Not available

33.1.2 The Councillors of the City of Tshwane Metropolitan Municipality were mem-

bers of the Pension Fund for Municipal Councillors, which was a defined

contribution fund and governed by the Pension Funds Act of 1956. The fund

was established in 1988. The actuarial valuation carried out on 30 June

2006 reported the fund to be in a sound financial positiion. 109 (0,92%) of

the Municipality’s employees were members of this fund. The total contribu-

tions in terms of the rules of the plan (included in employee remuneration,

Note 22) amounted to: 6 114 079 Not available 6 114 079 Not available

33.1.3 The National Fund for Municipal Workers was a defined contribution plan

and there were no statutory requirements to do an actuarial valuation. The

Municipality had no obligation to finance any deficit. The latest voluntary

actuarial valuation as at 30 June 2005 reported the fund to be in a sound

financial position. 3 240 (27,34%) of the Municipality’s employees were

members of this fund. The total contributions in terms of the rules of the

plan (included in employee remuneration, Note 22) amounted to: 134 875 445 Not available 134 875 445 Not available

33.1.4 The SALA Provident Fund was a defined contribution plan. An actuarial

valuation was carried out every three years. The Municipality had no obliga-

tion to finance any deficit. The actuarial valuation performed on 30 June

2004 reported the fund to be financially sound. 97 (0,82%) of Municipal em-

ployees were members of this fund. The total contributions in terms of the

rules of the plan (included in employee remuneration, Note 22) amounted to: 941 353 Not available 941 353 Not available

33.1.5 The SAMWU National Provident Fund was a defined contribution fund. The

fund was subject to actuarial valuation. The fund was not underwritten.

The actuarial valuation performed on 30 June 2006 reported the fund to be

in a sound financial position. 984 (8,30%) of the Municipality’s employees

were members of this fund. The total contributions in terms of the rules of

the plan (included in employee remuneration, Note 22) amounted to: 22 739 165 Not available 22 739 165 Not available

33.1.6 The Germiston Municipal Retirement Fund was a defined contribution plan

and was governed by the Pension Funds Act of 1956. Actuarial valuations

were performed every three years. The actuarial valuation performed

on 30 June 2006 reported the fund to be in a sound financial position.

3 (0,03%) of the Municipality’s employees were members of this fund. The

total contributions in terms of the rules of the plan (included in employee

remuneration, Note 22) amounted to: 163 310 Not available 163 310 Not available


125

DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

33.1.7 The Meshawu National Local Authorities Retirement Fund was a defined

contribution plan (established on 1 August 1996) and was governed by the

Pension Funds Act of 1956. The actuarial valuation done on 31 January

2001 reported the fund to be in a sound financial position with a funding

level of 118,8%. 63 (0,53%) of the Municipality’s employees were members

of this fund. The total contributions in terms of the rules of the plan (included

in employee remuneration, Note 22) amounted to: 1 187 310 Not available 1 187 310 Not available

33.1.8 The Municipal Gratuity Fund was a defined contribution plan governed by

the Pension Funds Act of 1956. The Municipality had no obligation to meet

unfunded benefits. The actuarial valuation was carried out every two years.

The actuarial valuation done on 30 June 2004 showed the fund to be in a

sound financial position. 1 463 (12,35%) of the Municipality’s employees

were members of this fund. The total contributions in terms of the rules of

the plan (included in employee remuneration, Note 22) amounted to: 47 420 095 Not available 47 420 095 Not available

DEFINED BENEFIT PLANS (AS CLASSIFIED BY THE RELEVANT

FUNDS):

33.1.9 The Tshwane Municipal Pension Fund was a defined benefit plan governed

by the Pension Funds Act of 1956. The consulting actuaries reported that

the fund was in a sound financial position with a funding level of 100% as

at 31 December 2006. 469 (3,96%) of the Municipality’s employees were



33.1.10 The SALA Pension Fund was a private fund. The actuarial valuation was

carried out annually since 1 July 1998. The actuarial valuation performed

on 1 July 2004 showed an unfunded liability of R516,62 million (81,9%

funding level). The Municipality’s employees made up approximately 5,4%

of the total membership and therefore the Municipality’s possible liability

with regard to the unfunded liability was calculated at R28 104 128. 994

(8,39%) of the Municipality’s employees were members of this fund. The

total contributions, in terms of the rules of the plan (included in employee

remuneration, Note 22) amounted to: 24 348 071 Not available 24 348 071 Not available

126


DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

33.1.11 The Government Employees Pension Fund was a defined benefit plan

and was governed by the Government Employees Pension Fund Law,

1996, in terms of Proclamation 21 of 19 April 1996. Actuarial valuations

were performed every three years. The actuarial valuation performed on

31 March 2004 reported the fund to be in a sound financial position with a

funding level of 96,5%. 216 (1,82%) of the Municipality’s employees were



33.1.12 The Joint Municipal Pension Fund was not a pure defined benefit fund,

but a hybrid fund (which had qualities of both a defined benefit and defined

contribution fund) and was governed by the Pension Funds Act of 1956.

Actuarial valuations were performed every three years. The actuarial valu-

ation performed on 31 December 2005 reported a funding level of 97,7%,

resulting in a shortfall of R44,237 million. The Municipality’s employees

made up approximately 1,78% of the total membership. The Municipality’s

possible liability with regard to unfunded benefits was calculated to be R4

737 363. 74 (0,63%) of the Municipality’s employees were members of this

fund. The total contributions in terms of the rules of the plan (included in

employee remuneration, Note 22) amounted to: 3 258 823 Not available 3 258 823 Not available

33.1.13 The Municipal Employees Pension Fund was a defined benefit plan and

was governed by the Pension Funds Act of 1956. The actuarial valuation

performed on 28 February 2005 reported the fund to be in a sound financial

position with a funding level of 106,9%. 1 876 (15,83%) of the Municipal-

ity’s employees were members of this fund. The total contributions in

terms of the rules of the plan (included in employee remuneration, Note 22)

amounted to: 40 958 555 Not available 40 958 555 Not available

33.2 MEDICAL AID FUNDS

The erstwhile City Council of Pretoria and Town Council of Centurion

resolved to continue subsidising employees who retired while being

members of Global Health and Munimed respectively. This liability was

confirmed by the Section 12 Notice in terms of the Structures Act, 1998.

The liability only applied to employees from these two erstwhile councils

who retired as members of the undermentioned medical schemes. The total

contributions are included in employee remuneration, Note 22). 29 488 485 24 479 353 29 488 485 24 479 353

Global Health (1 540 pensioners) 26 479 908 26 479 908

Munimed (125 pensioners) 3 008 577 3 008 577

TOTAL CONTRIBUTIONS (included in employee remuneration - Note 22) 417 586 956 Not available 417 586 956 Not available


127

DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

34 CONTINGENT LIABILITIES

34.1 HOUSING LOANS

Guarantees for housing loans to employees at financial institutions 2 237 322 2 759 796 2 237 322 2 759 796

With the implementation of the MFMA, no new guarantees were issued.

The liability would therefore decrease in future. The property was used as

collateral in cases of default on payments.

34.2 INDEMNIFICATION

Value of investments ceded to the Workmen’s Compensation Commissioner

in compliance with the requirements of the Compensation for Occupational

Injuries and Diseases Act, 1993: 24 357 428 20 801 187 24 357 428 20 801 187

The capitalised value as at 31 December 2006 as calculated by the Depart-

ment of Labour amounted to: 27 392 475 24 357 428 27 392 475 24 357 428

Consistent with prior years the amendment to the cession would be

addressed in the following financial year.

34.3 INSURANCE CLAIMS

Pending claims against the Council in respect of vehicle accidents and

public liabilities which originated before 30 June: 61 382 669 76 783 015 61 382 669 76 783 015

The payment of claims against the City of Tshwane was provided for in the

Self-insurance Reserve, which had a balance of R128,6 million.

34.4 RETIREMENT OF REDUNDANT EMPLOYEES

The retirement of redundant employees resulted in the following estimated

long-term liabilities (these liabilities were budgeted for annually):

*Pension fund contribution with regard to all employees who received

packages and who qualified for a monthly pension up to the approved age

of retirement. 69 995 000 60 893 000 69 995 000 60 893 000

*Sick fund contribution payable to Pretmed with regard to all employees who

received packages and who were deemed to be full members of the fund up

to the approved age of retirement. 44 593 000 44 834 675 44 593 000 44 834 675

34.5 ENTERPRISE SOUTH AFRICA (Section 21 Company)

The company failed to register for VAT when it was founded in 1999. The

company was liable for output VAT of approximately R1 013 000, excluding

possible interest and penalties. The company would be able to claim input

tax on its qualifying expenses, but the amount could not be determined at

the time (the saving as a result of the input tax was not significant).

35 IN-KIND DONATIONS AND ASSISTANCE

The Municipality received the following in-kind donations and assistance:

Description:

- Secondment of International Finance Advisor by National Treasury


DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

36 PRIVATE-PUBLIC PARTNERSHIPS

The City of Tshwane had only one such partnership, ie Tswaing Electricity

Project (Pty) Ltd. The liquidation of this company was started during

the 2004/05 financial year. The liquidation process was finalised during

2005/06.

37 EVENTS AFTER THE REPORTING PERIOD

No material events occurred with respect to the 2006/07 financial year.

37.1 EXTERNAL LOANS

DBSA: Loan at 5% (nacs) of Targeted Infrastructure Programme (TIP) 0 100 000 000 0 100 000 000

DBSA: Loan at 121,5 basis points over the R156 (Government Bond rate) 0 400 000 000 0 400 000 000

Ivuzi Annuity loan at 13,5% 0 200 000 000 0 200 000 000

The offer of the R100 million was conditional on the R400 million being ac-

cepted. The term would be 15 years from date of disbursement. The loan

was to be amortised over the period of the loan. The repayment would be

six-monthly (nacs). This was an unsecured loan.

Roodeplaat Temba Water Services Trust

The City of Tshwane took the decision to terminate the Trust on 28 February

2008. Arrangements were made to transfer all business assets to the City of

Tshwane which would take over the business of the Trust.

Commitments: The Trust entered into a lease agreement with the City of

Tshwane by which the Roodeplaat Plant property would be leased from the

City of Tshwane. The lease was classified as an operating lease and the

Trust had a commitment to make the following two payments in the next

financial year:

31 December 2007 = R246 735,00 and 30 June 2008 = R252 811,00

38 COMPARISON WITH THE BUDGET

The comparison of the actual financial performance with that budgeted is set

out in Annexures E, F and G.


129

DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

39 DIRECTORS EMOLUMENTS

39.1 CIVIRELO WATER

Paid by company for services as directors 521 850 172 000

39.2 HOUSING COMPANY TSHWANE

Paid by company for services as directors 0 66 500

Expense allowances 0 6 000

40 RELATED PARTY DISCLOSURES

40.1 PARENT

The following municipal entities were under the control of the erstwhile/

disestablished municipalities. The City of Tshwane Metropolitan Municipality

became the parent municipality on 5 December 2000 as a result of the

successor-in-law principle.

40.1.1 Transactions between related parties

The parent of the Tshwane Centre for Business Information and Sup-

port (Cenbis) parent is the City of Tshwane. Details and amounts of

the transactions are as follows:

Received RSC levies 6 870 0 6 870

Civirelo Water’s parent is the City of Tshwane. Details and amounts of

the transactions are as follows:

Received RSC levies 119 286 0 119 286

Creditors 1 860 802 74 581 306 1 860 802 74 581 306

Water sales 40 976 503 71 147 640 40 976 503 71 147 640

Housing Company Tshwane’s parent is the City of Tshwane. Details

and amounts of the transactions are as follows:

Received RSC levies 0 6 769 0 6 769

Received electricity and water sales 562 558 270 888 562 558 270 888

Paid general expenses 156 444 0 156 444 0

Debtors transferred 0 4 576 464 0 4 576 464

Roodeplaat Temba Water Services Trust’s parent is the City of

Tshwane. Details and amounts of the transactions are as follows:


Paid water (water sales to the City of Tshwane) 104 212 872 89 604 011 104 212 872 89 604 011

Beneficiary distribution 25 000 000 20 000 000 25 000 000 20 000 000

Paid general expenses 0 1 720 000 475 727 1 720 000

Grant received 0 2 009 123 0 2 009 123

Interest - finance lease 4 718 102 2 752 438 4 718 102 2 752 438

Lease charges 475 727 704 630 475 727 704 630

130


DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

Accounts receivable 12 149 142 12 504 886 12 149 142 12 504 886

Accounts payable 4 112 185 0 4 112 185 0

Deferred operating lease liabilities 1 873 039 1 644 136 1 873 039 1 644 136

Finance lease liabilities 28 113 989 25 021 351 28 113 989 25 021 351

Roodeplaat Temba Water Services Trust: Transactions with Magalies

Water

Production overheads, accounts payable, accounts receivable, etc 34 383 373 29 027 128

Roodeplaat Temba Water Services Trust: Transactions with Absa

Corporate and Merchant Bank

Interest received 13 636 652 547 800

Interest paid 30 442 816 7 564 880

Bank charges 1 165 444 547 724

Capitalised interest/accrued interest 0 18 446 580

Long-term loan 234 079 776 239 999 094

Sandspruit Works Association Division: ODI Water Sales’s parent is

the City of Tshwane. Details and amounts of the transactions are as

follows:


Paid water 50 983 935 63 801 855 50 983 935 63 801 855

Sundry creditor (water) 0 9 822 644 0 9 822 644

Received water 20 382 060 0 20 382 060 0

Operating loss account 4 112 685 4 398 120 4 112 685 4 398 120

Trade Point Pretoria’s parent is the City of Tshwane. Details and

amounts of the transactions are as follows:

Paid general expenses 0 191 102 0 191 102

40.1.2 No transactions between related parties

No transactions took place between the City of Tshwane Metropolitan Mu-

nicipality and the entities listed below, as the entities had been dormant for a

number of years and therefore did not engage in any financial transactions.

These entities also did not compile financial statements. The legal status of

the entities currently is as follows:

Companies deregistered in terms of Government Gazette No 29773 of

13 April 2006:

The Centurion Community Protection Company


Greater Pretoria Safety and Security Association

Lebone Municipal Finance Corporation

Greater Pretoria Metro Festival Company

Prelight (Pty) Ltd

Tswaing Water and Sanitation Services

Tswaing Environmental Health Services (Pty) Ltd


131

DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

Moreletakloof Conservation Company

Pretoria Inner City Association

Tswaing Civil Projects (Pty) Ltd

Tswaing Waste Removal Services

Rep Ba-Agi

Biz Africa 372

Jacaranda Carnival - duplicated - is the same company as National Youth

Festival

National Youth Festival

The following company was liquidated:

Tswaing Electricity Project (Pty) Ltd (final liquidation completed during

2005/06)

Company not consolidated:

Museum Park:

This entity had an agreement with the City of Tshwane Metropolitan Munici-

pality to rent the parking lot at the City Hall to generate income. The entity

submitted financial statements for the year ended 28 February 2006. These

financial statements were, however, not consolidated due to the following:

The directors were not councillors or employees of the Municipality.

According to the financial statements, no income was received from the

Municipality from 1 March 2005 to 28 February 2006.

The entity does not consist only of the Municipality’s museums but also

national museums and other projects.

The Municipality did not have any shareholding in the entity.

The difference between the reporting dates was more than three months as

stipulated in the Specimen Consolidated Municipal Annual Financial State-

ments dated September 2006.

41 PRIOR YEAR ADJUSTMENTS (see Statement of Changes of Parent)

Revenue of the 2005/06 financial year was adjusted in respect of

RSC levies (increase in revenue and creating a debtor) 250 958 343 160 950 691

Training fees recovered: Amount allocated to revenue in 2006/07 but

received in 2005/06 1 711 273 1 711 273

Writing back of the provision for obsolete stock 2 900 000 2 900 000

Total prior year adjustment 255 569 616 165 561 964

42 INTERNAL COST

Repairs and maintenance:

External 727 352 320 674 270 199 727 352 320 674 270 199

Total 1 325 085 430 1 095 350 905 1 325 085 430 1 095 350 905

Less: Internal 597 733 110 421 080 706 597 733 110 421 080 706

132


DESCRIPTION

MUNICIPALITY GROUP

2007 2006 2007 2006

R R R R

General expenses:

External 1 837 798 359 1 743 872 341 1 837 798 359 1 743 872 341

Total 2 628 171 254 2 607 982 555 2 628 171 254 2 607 982 555

Less: Internal 790 372 895 864 110 214 790 372 895 864 110 214

43 FINANCIAL INSTRUMENTS

43.1 RISKS

In the course of the Municipality’s business operations it is exposed to interest rate, credit, liquidity and market risk. The Municipality has developed a comprehensive

risk management process to monitor and control these risks. The risk management process relating to each of these risks is discussed under the headings below.

43.1.1 Interest rate risk

The Municipality managed its interest rate risk by maintaining an appropriate mix between fixed and floating interest rate borrowings and investments, as well as

by entering into interest rate swap contracts on outstanding borrowings. The Municipality’s exposure to interest rate risk and the effective interest rates on financial

instruments at statement of financial position date was as follows:

Description Floating rate Fixed rate Non-interest bearing Total

Amount Weighted

average

effective

interest rate

Weighted

average period

for which rate

is fixed

Amount Weighted

average

period until

maturity

R R % Years R Years R

Year ended 30 June 2007

Assets:

Investments 424 973 396 544 985 009 14.36 13.55 969 958 405

Long-term receivables:

Housing loans 103 434 420 13.87 30 103 434 420

Motor car loans 8 080 676 8.61 6 8 080 676

Loans to sports clubs 1 729 108 11.99 10 1 729 108

Study loans 15 611 1 15 611

Sale of land 69 882 328 11.09 5 69 882 328

Samrand Development (Pty) Ltd 18 152 563 18 152 563

Trade receivables:

Consumer 1 932 654 004 10.5 1 1 213 886 365 3 146 540 369

Other 300 248 462 300 248 462

Cash 69 349 269 69 349 269

Total financial assets 494 322 665 2 660 765 545 1 532 303 001 4 687 391 211

Liabilities


133

Interest-bearing borrowings 192 331 528 2 317 263 939 11.31 15.49 2 509 595 467

Interest rate swaps 125 000 000 200 000 000 19.13 17.79 325 000 000

Trade payables:

Creditors 1 749 841 111 0.08 1 749 841 111

Retention 80 391 743 1 80 391 743

Consumer deposits 257 579 090 0.08 257 579 090

Unspent grants and receipts 210 990 931 0.08 210 990 931

VAT 52 402 061 0.08 52 402 061

Bank overdrafts 46 002 138 46 002 138

Total financial liabilities 363 333 666 2 517 263 939 2 351 204 936 5 231 802 541

130 988 999 143 501 606 (818 901 935) (544 411 330)

Year ended 30 June 2006

Assets:

Investments 380 274 510 477 837 207 14.33 13.55 858 111 717


Housing loans 97 667 736 13.88 30 97 667 736

Motor car loans 20 383 146 8.61 6 20 383 146

Loans to sports clubs 1 786 494 6.77 10 1 786 494

Study loans 26 917 1 26 917

Sale of land 64 217 013 9.89 5 64 217 013


Trade receivables:

Consumer 2 269 954 236 10.5 1 689 715 136 2 959 669 372

Other 267 821 941 267 821 941

Cash 18 812 232 18 812 232

Total financial assets 399 086 742 2 931 845 832 975 716 557 4 306 649 131

Liabilities

Interest-bearing borrowings 206 447 858 1 666 695 063 14.17 15.04 1 873 142 921

Interest rate swaps 125 000 000 200 000 000 19.13 17.79 325 000 000

Trade payables:

Creditors 1 589 424 708 0.08 1 589 424 708

Retention 68 291 428 1 68 291 428

Consumer deposits 236 092 389 0.08 236 092 389

Unspent grants and receipts 176 499 862 0.08 176 499 862

VAT 166 782 350 0.08 166 782 350

Bank overdrafts 29 715 301 29 715 301


37 923 583 1 065 150 769 (1 261 374 180) (158 299 828)

Interest rate swaps

The Municipality entered into interest rate swap contracts that entitled it to receive interest at fixed rates/floating rates on notional principal amounts and that obliged it

to pay interest at variable rates/fixed rates on the same amounts. The interest rate swaps allowed the Municipality to raise long-term borrowings at fixed rates/floating

rates and effectively swap them into variable rates/fixed rates in terms of the structured finance contractual requirements.

The estimated fair value gain/(loss) indicated below was determined by comparing the interest rate swap contracted values (fixed rate) with the variable rate paid.

134


At the statement of financial position date the Municipality entered into the following interest rate swaps relating to specific statement of financial position items:

Date Fixed rate Fair value Estimated fair

value gain/

(loss)

% R R

Year ended 30 June 2007 30 June 1998 17.55 125 000 000 10 374 232

19 January 1994 19.13 200 000 000 (20 136 827)

325 000 000 (9 762 595)

Year ended 30 June 2006 30 June 1998 17.55 125 000 000 11 180 757

19 January 1994 19.13 200 000 000 (20 136 827)

325 000 000 (8 956 070)

43.1.2 Currency risk

The Municipality undertook certain transactions denominated by foreign currencies. Hence exposure to exchange rate fluctuations might arise. The Municipality,

however, managed this risk by entering into contracts where the risk was carried by the service provider.

43.1.3 Credit risk

Financial assets which potentially subjected the Municipality to the risk of non-performance by counter-parties and thereby subjected it to concentrations of credit risk

consisted mainly of trade receivables. Credit risk was controlled through the application of a credit control policy and monitoring procedures. Where necessary, the

Municipality obtained appropriate deposits and guarantees from debtors to mitigate risk.

The Municipality limited its treasury counter-party exposure arising from the money market by only dealing with well-established financial institutions confirmed by

the rating agency appointed by the Chief Financial Officer. The Municipality only dealt with financial institutions with a short-term credit rating of A+ and long-term

credit rating of AA- and higher at an international accredited credit-rating agency. The Municipality’s exposure was continuously monitored and the aggregate value of

transactions concluded was spread among different types of approved investments and institutions.

Credit risk with respect to trade receivables was limited due to the large number of customers in the Municipality’s customer base and their dispersion across different

industries and geographical areas. The Municipality did not have any significant exposure to any individual customer or counter-party. Accordingly, the Municipality

did not consider there to be any significant concentration of credit risk, which had not been adequately provided for. Trade receivables were presented net of the

allowance for impairment.

The major concentrations of credit risk that arose from the Municipality’s receivables in relation to customer classification were as follows:

30 Jun 2007 30 Jun 2006

% %

Consumer debtors:

Household 59,4 65,2

Industrial/commercial 23,6 18,6

National and Provincial Government 2,1 1,7

Other consumer debtors 6,1 6,3

Other debtors:

Housing 0,3 0,2

Government subsidies 0,2 0,1

RSC levies 0,1 2,3

Amounts paid in advance 1,5 0,0

Other 6,7 5,6

100,0 100,0


135

43.1.4 Liquidity risk

The Municipality managed liquidity risk through proper management of working capital, capital expenditure and actual versus forecast cash flows. Adequate reserves,

liquid resources and unutilised borrowing facilities were also maintained. Capital expenditure, budgeted and forecast cash flow calculations were to be funded as

follows from the capital market:

30 Jun 2008 30 Jun 2009 30 Jun 2010

R R R

External funding: Capital expenditure 500 000 000 450 000 000 400 000 000

43.1.5 Market risk

The Municipality was exposed to fluctuating market prices inherent in the purchasing of electricity, water and coal used in the delivery of electricity and water services.

The Municipality managed this risk by giving any price increases through to the consumers on an annual basis. An agreement was entered into with both Eskom and

Rand Water that tariff increases would occur only once a year.

43.2 FAIR VALUES

The Municipality’s financial instruments consisted mainly of cash and cash equivalents, trade receivables, investments, trade payables, long-term debt and derivative

instruments (interest rate swaps).

No financial asset was carried at an amount in excess of its fair value and fair values could be reliably measured for all financial assets that were available-for-sale or

held-for-trading.

The following methods and assumptions were used to determine the fair value of each class of financial instrument:

Cash and cash equivalents

The carrying amount of cash and cash equivalents approximated fair value due to the relatively short-term maturity of these financial assets and financial liabilities.

Trade receivables (debtors)

The carrying amount of trade receivables, net of provision for impairment (provision for bad debt), approximated fair value due to the relatively short-term maturity of

these financial assets.

Investments

Investments were carried at their original cost in the statement of financial position, except for those where the interest received semi-annually was capitalised. The

fair value of publicly traded instruments was based on quoted market prices for those investments.

Trade payables

The carrying amount of trade payables approximated fair value due to the relatively short-term maturity of this financial liability.

Interest-bearing borrowings

Subsequent to initial recognition, interest-bearing borrowings were stated at amortised cost with any difference between cost and redemption value being recognised

in the statement of financial performance over the period of the borrowings on an effective interest basis. The fair value of interest-bearing borrowings with variable

interest rates approximated their carrying amounts.

Derivatives (interest rate swaps)

Derivative financial instruments (interest rate swaps) were initially measured at fair value on the contract date and were remeasured at fair value at subsequent report-

ing dates.

136


The fair value of financial liabilities at statement of financial position date was as follows:

Year ended Fair value Carrying

amount

R R

30 June 2007:

Liabilities

Interest rate swaps 325 000 000 325 000 000

30 June 2006:

Liabilities

Interest rate swaps 325 000 000 325 000 000

43.3 MATURITY PROFILE

The maturity profiles of financial assets and liabilities at statement of financial position date were as follows:

1 year or less 1 to 5 years Over 5 years Total

R R R R

Year ended 30 June 2007:

Assets:

Investments 558 674 498 327 427 539 83 856 368 969 958 405


Housing loans 103 434 420 103 434 420

Motor car loans 8 080 676 8 080 676

Loans to sports clubs 1 729 108 1 729 108

Study loans 15 611 15 611

Sale of land 69 882 328 69 882 328


Trade receivables:

Consumer 2 925 944 652 220 595 717 3 146 540 369

Other 300 248 462 300 248 462

Cash 69 349 269 69 349 269


Liabilities

Interest-bearing borrowings 30 005 000 349 612 242 2 129 978 225 2 509 595 467

Interest rate swaps 125 000 000 200 000 000 325 000 000

Trade payables:

Creditors 1 749 841 111 1 749 841 111

Retention 80 391 743 80 391 743

Consumer deposits 257 579 090 257 579 090

Unspent grants and receipts 210 990 931 210 990 931

VAT 52 402 061 52 402 061

Bank overdrafts 46 002 138 46 002 138



137

Year ended 30 June 2006:

Assets:

Investments 375 989 527 364 226 067 117 896 123 858 111 717


Housing loans 97 667 736 97 667 736

Motor car loans 20 383 146 20 383 146

Loans to sports clubs 1 786 494 1 786 494

Study loans 26 917 26 917

Sale of land 64 217 013 64 217 013


Trade receivables:

Consumer 2 816 607 434 143 061 938 2 959 669 372

Other 267 821 941 267 821 941

Cash 18 812 232 18 812 232


1 year or less 1 to 5 years Over 5 years Total

R R R R

Liabilities

Interest-bearing borrowings 1 280 812 373 000 000 1 498 862 109 1 873 142 921

Interest rate swaps 0 125 000 000 200 000 000 325 000 000

Trade payables:

Creditors 1 589 424 708 1 589 424 708

Retention 68 291 428 68 291 428

Consumer deposits 236 092 389 236 092 389

Unspent grants and receipts 176 499 862 176 499 862

VAT 166 782 350 166 782 350

Bank overdrafts 29 715 301 29 715 301


HEDGING

Hedging was not applicable in the environment of the Municipality.


ANNEXURE ASCHEDULE OF EXTERNAL LOANS AS AT 30 JUNE 2007: PARENT

Opening balance

R

EXTERNAL LOANS:

LOCAL REGISTERED STOCK:

Issued Loan number Interest rate (%) Redeemable

1997 105 16.65 2014.06.30 94,729,851

1993 104 14.15 2008.09.30 40,000,000

1984 43 16.25 2004.04.30 5,000

1990 55 16.40 2011.06.30 14,768,034

1992 62 13.50 2011.06.30 21,258,263

1993 63 14.00 2011.06.30 35,019,664

1997 65 15.75 2011.06.30 50,000,000

2000 66 16.50 2011.06.30 59,000,000

TOTAL LOCAL REGISTERED STOCK 314,780,812

TERM LOANS:

DBSA: Bullet portion 13.50 2018.04.30 50,000,000

DBSA: Floating rate Variable 2019.10.31 78,331,528

Nedbank loan B1 Variable 2008.05.28 30,000,000

ABSA Bank loan B3 Variable 2011.06.30 84,000,000

INCA loan 17.15 2011.06.30 45,000,000

ABSA Bank BA rate Variable 2007.01.31 500,000

Future Syndications Variable 2008.06.30 125,000,000

Rand Merchant Bank Variable 2014.04.30 12,840,519

ABSA Bank Arbitrage 19.13 2011.10.31 200,000,000

TOTAL TERM LOANS 625,672,047

ANNUITY LOANS:

DBSA 13.5 2018.04.30 249,331,006

DBSA Local Authorities 13.5 2012.12.31 18,826,189

DBSA (Restructuring) 10.87 2018.12.31 257,830,455

INCA 11.66 2019.06.30 18,925,076

INCA 9.52 2020.03.31 215,109,025

INCA 11.01 2020.06.30 48,580,168

DBSA 9.36 2020.12.31 270,524,362

INCA 10.92 2020.12.31 98,563,782

INCA 10.81 2021.06.30 80,000,000

DBSA 5.0 2021.12.31

DBSA 9.835 2021.12.31

Ivuzi 13.5 2021.12.31

TOTAL ANNUITY LOANS 1,257,690,063

TOTAL EXTERNAL LOANS 2,198,142,922

139

Received during the year Redeemed during the year Closing balance Carrying value of Property, Plant &

Equipment

Other Costs in accord-

ance with the MFMA

R R R R R

367,789 95,097,640 91,171,640

40,000,000 38,348,644 Not

5,000 4,794 Applicable

(44,884) 14,723,150 14,115,321

(271,307) 20,986,956 20,120,533

882,472 35,902,136 34,419,956

50,000,000 47,935,806

59,000,000 56,564,250

934,070 0 315,714,882 302,680,944

50,000,000 47,935,806

78,331,528 75,097,698

30,000,000 28,761,483 Not

84,000,000 80,532,153 Applicable

45,000,000 43,142,225

500,000 0 0

125,000,000 119,839,514

12,840,519 0 0

200,000,000 191,743,222

0 13,340,519 612,331,528 587,052,101

8,460,660 240,870,346 230,926,281

941,278 17,884,911 17,146,552

4,949,594 252,880,861 242,440,955

707,161 18,217,915 17,465,809 Not

7,842,941 207,266,084 198,709,334 Applicable

1,580,458 46,999,710 45,059,379

4,484,846 266,039,516 255,056,370

3,016,711 95,547,071 91,602,516

2,311,059 77,688,941 74,481,639

100,000,000 2,703,217 97,296,783 93,279,993

400,000,000 10,718,270 389,281,730 373,210,666

200,000,000 3,424,811 196,575,189 188,459,801

700,000,000 51,141,006 1,906,549,057 1,827,839,296

700,934,070 64,481,525 2,834,595,467 2,717,572,340

140


Opening balance

R

EXTERNAL LOANS:

LOCAL REGISTERED STOCK:

Issued Loan number Interest rate (%) Redeemable

1997 105 16,65 2014.06.30 94 729 851 1993 104 14,15 2008.09.30 40 000 000 1984 43 16,25 2004.04.30 5 000 1990 55 16,40 2011.06.30 14 768 034 1992 62 13,50 2011.06.30 21 258 263 1993 63 14,00 2011.06.30 35 019 664 1997 65 15,75 2011.06.30 50 000 000 2000 66 16,50 2011.06.30 59 000 000

TOTAL LOCAL REGISTERED STOCK 314 780 812

TERM LOANS:

DBSA: Bullet portion 13,50 2018.04.30 50 000 000

DBSA: Floating rate Variable 2019.10.31 78 331 528

DBSA (Roodeplaat/Temba Trust) 121 771 451

Nedbank loan B1 Variable 2008.05.28 30 000 000

Nedbank (Roodeplaat/Temba Trust) 174 149 846

Absa Bank loan B3 Variable 2011.06.30 84 000 000

Absa (Roodeplaat/Temba Trust) 234 077 797

National Housing Finance Corp 14,00 5 418 660

Gauteng Partnership Fund 0,00 293 000

Rand Water (ODI) 0,00 2 697 017

INCA loan 17,15 2011.06.30 45 000 000

Absa Bank BA rate Variable 2007.01.31 500 000

Future syndications Variable 2008.06.30 125 000 000

Rand Merchant Bank Variable 2014.04.30 12 840 519

Absa Bank arbitrage 19,13 2011.10.31 200 000 000

TOTAL TERM LOANS 1 164 079 818

ANNUITY LOANS:

DBSA 13,5 2018.04.30 249 331 006

DBSA local authorities 13,5 2012.12.31 18 826 189

DBSA (restructuring) 10,87 2018.12.31 257 830 455

INCA 11,66 2019.06.30 18 925 076

INCA 9,52 2020.03.31 215 109 025

INCA 11,01 2020.06.30 48 580 167

DBSA 9,36 2020.12.31 270 524 362

INCA 10,92 2020.12.31 98 563 782

INCA 10,81 2021.06.30 80 000 000

DBSA 5,0 2021.12.31

DBSA 9,835 2021.12.31

Ivuzi 13,5 2021.12.31

TOTAL ANNUITY LOANS 1 257 690 062

LEASE LIABILITY (Roodeplaat/TembaTrust) 19 116 417

TOTAL EXTERNAL LOANS 2 755 667 109

ANNEXURE ASCHEDULE OF EXTERNAL LOANS AS AT 30 JUNE 2007: GROUP

141

Received during the year Redeemed during the year Closing balance Carrying value of property,

plant and equipment

Other costs in accord-

ance with the MFMA

R R R R R

367 789 95 097 640 91 171 64040 000 000 38 348 644 Not

5 000 4 794 Applicable(44 884) 14 723 150 14 115 321

(271 307) 20 986 956 20 120 533882 472 35 902 136 34 419 956

50 000 000 47 935 80659 000 000 56 564 251

934 070 0 315 714 882 302 680 945

50 000 000 47 935 806

78 331 528 75 097 698

3 228 549 3 228 573 121 771 427 121 771 427

30 000 000 28 761 483

13 220 738 160 929 108 160 929 108 Not

84 000 000 80 532 153 Applicable

5 921 297 5 919 317 234 079 777 187 030 977

441 077 4 977 583 4 977 583

293 000 293 000

143 644 2 553 373 0

45 000 000 43 142 225

500 000 0 0

125 000 000 119 839 514

12 840 519 0 0

200 000 000 191 743 222

9 149 846 36 293 868 1 136 935 796 1 062 054 196

8 460 660 240 870 346 230 926 281

941 278 17 884 911 17 146 552

4 949 594 252 880 861 242 440 956

707 161 18 217 915 17 465 808 Not

7 842 941 207 266 084 198 709 333 Applicabe

1 580 458 46 999 709 45 059 379

4 484 846 266 039 516 255 056 370

3 016 711 95 547 071 91 602 516

2 311 059 77 688 941 74 481 639

100 000 000 2 703 217 97 296 783 93 279 993

400 000 000 10 718 270 389 281 730 373 210 666

200 000 000 3 424 811 196 575 189 188 459 801

700 000 000 51 141 006 1 906 549 056 1 827 839 294

8 697 314 27 813 731 14 565 592

718 781 230 87 434 874 3 387 013 466 3 207 140 027

142


Asset class Note

Cost/revaluation

Opening balance Additions Under constructionDisposals, transfers

and adjustmentsClosing balance

R R R R R

INFRASTRUCTURE

Airport 7 703 778 2 198 806 9 902 584

Electricity 1 592 399 484 73 289 235 101 234 158 1 766 922 877

Information technology 392 279 218 10 621 298 (256 412 115) 146 488 401

Roads 2 026 754 093 28 791 055 215 852 561 2 271 397 709

Security 51 743 387 11 611 860 3 409 416 66 764 663

Sewerage 602 091 766 52 741 297 90 982 710 745 815 773

Water 642 145 048 38 575 439 315 506 833 996 227 320

General 23 241 986 1 196 845 24 438 831

Assets under construction 1 112 290 227 250 981 817 1 363 272 044

6 450 648 987 217 828 990 250 981 817 471 770 408 7 391 230 202

COMMUNITY ASSETS

Global: General 199 326 829 (19 214 589) 180 112 240

Recreation 131 857 843 6 900 014 8 589 850 147 347 707

Assets under construction 58 461 941 0 (22 463 288) 35 998 653

389 646 613 6 900 014 (22 463 288) (10 624 739) 363 458 600

HERITAGE ASSETS

Museum pieces and artworks 386 428 386 428

General 2 834 674 (18 628) 2 816 046

3 221 102 0 0 (18 628) 3 202 474

HOUSING

Dwellings: Indigent 1 156 316 0 1 156 316

General 29 173 782 (32 330) 29 141 452

Assets under construction 196 898 885 (59 745 969) 137 152 916

227 228 983 0 (59 745 969) (32 330) 167 450 684

OTHER

General 163 204 589 7 840 297 (15 352 197) 155 692 689

Books 13 082 405 (142 591) 12 939 814

Emergency equipment 9 840 136 (20 679) 9 819 457

Furniture and fittings 17 834 627 (3 427 412) 14 407 215

Computer equipment 176 181 449 499 002 (32 419 719) 144 260 732

Office equipment 11 436 190 (1 004 183) 10 432 007

Plant and equipment 138 295 647 2 607 811 (11 299 710) 129 603 748

Vehicles 279 908 488 12 824 813 (49 622 422) 243 110 879


838 961 627 23 771 923 39 967 354 (113 288 913) 789 411 991

ANNEXURE BANALYSIS OF PROPERTY, PLANT AND EQUIPMENT AS AT 30 JUNE 2007: PARENT

143

Accumulated depreciation

Carrying valueOpening balance Additions

Disposals, transfers and

adjustmentsClosing balance

R R R R R

2 530 656 402 580 2 933 236 6 969 348

589 570 745 76 222 100 (40 977 781) 624 815 064 1 142 107 813

190 706 125 26 901 123 (162 409 583) 55 197 665 91 290 736

760 550 737 104 762 643 (60 863 818) 804 449 562 1 466 948 147

19 796 397 11 006 803 162 092 30 965 292 35 799 371

192 369 579 30 224 114 (2 427 842) 220 165 851 525 649 922

116 211 150 59 713 672 140 511 345 316 436 167 679 791 153

6 144 812 1 123 318 (528 439) 6 739 691 17 699 140

1 363 272 044

1 877 880 201 310 356 353 (126 534 026) 2 061 702 528 5 329 527 674

118 461 265 11 290 520 (6 147 645) 123 604 140 56 508 100

58 454 589 9 442 699 (721 399) 67 175 889 80 171 818

35 998 653

176 915 854 20 733 219 (6 869 044) 190 780 029 172 678 571

386 428

2 816 046

0 0 0 0 3 202 474

136 010 42 753 178 763 977 553

7 018 618 1 272 066 (32 330) 8 258 354 20 883 098

137 152 916

7 154 628 1 314 819 (32 330) 8 437 117 159 013 567

60 417 157 22 025 080 (16 583 216) 65 859 021 89 833 668

8 721 817 4 328 976 (110 979) 12 939 814 0

4 631 193 2 777 438 125 923 7 534 554 2 284 903

3 591 839 1 644 838 (1 055 436) 4 181 241 10 225 974

110 430 579 36 472 685 (32 636 002) 114 267 262 29 993 470

3 305 741 2 199 699 (518 361) 4 987 079 5 444 928

60 184 934 25 838 159 (8 031 761) 77 991 332 51 612 416

128 472 975 35 793 026 (51 154 328) 113 111 673 129 999 206

0 0 69 145 450

379 756 235 131 079 901 (109 964 160) 400 871 976 388 540 015

144


Asset class Note

Cost/revaluation



R R R R R

INVESTMENT PROPERTY

Parking 1 323 390 450 000 1 773 390

Industrial sidings 383 906 383 906

1 707 296 450 000 0 0 2 157 296

INTANGIBLE ASSETS

Computer software 198 133 925 171 421 0 9 718 652 208 023 998

198 133 925 171 421 0 9 718 652 208 023 998

LAND AND BUILDINGS

Land 1 095 638 197 10 452 013 38 427 340 1 144 517 550

Buildings 1 121 682 404 110 514 007 110 392 325 1 342 588 736

2 217 320 600 120 966 020 0 148 819 665 2 487 106 285

TOTAL 10 326 869 133 370 088 368 208 739 914 506 344 115 11 412 041 530

ANNEXURE BANALYSIS OF PROPERTY, PLANT AND EQUIPMENT AS AT 30 JUNE 2007: PARENT

145





R R R R R

3 676 45 363 49 039 1 724 351

25 594 12 797 38 391 345 515

29 270 58 160 0 87 430 2 069 866

39 614 085 40 260 980 2 800 000 82 675 065 125 348 933

39 614 085 40 260 980 2 800 000 82 675 065 125 348 933

5 801 067 (5 795 036) 6 031 1 144 511 519

380 968 768 54 780 600 (3 654 670) 432 094 698 910 494 038

386 769 835 54 780 600 (9 449 706) 432 100 729 2 055 005 556

2 868 120 108 558 584 032 (250 049 266) 3 176 654 874 8 235 386 657

146


Asset class Note

Cost/revaluation



R R R R R

INFRASTRUCTURE 9.1

Airport 7 703 778 2 198 806 9 902 584

Electricity 1 592 399 484 73 289 235 101 234 158 1 766 922 877

Information technology 392 279 218 10 621 298 (256 412 115) 146 488 401

Roads 2 026 754 093 28 791 055 215 852 561 2 271 397 709

Security 51 743 387 11 611 860 3 409 416 66 764 663

Sewerage 602 091 766 52 741 297 90 982 710 745 815 773

Water 642 145 048 38 575 439 315 506 833 996 227 320

General 23 241 986 1 196 845 24 438 831


Sandspruit Works Association 7 187 230 3 033 021 10 220 251

6 457 836 217 220 862 011 250 981 817 471 770 408 7 401 450 453

COMMUNITY ASSETS 9.2

Global: General 199 326 829 (19 214 589) 180 112 240

Recreation 131 857 843 6 900 014 8 589 850 147 347 707


389 646 613 6 900 014 (22 463 288) (10 624 739) 363 458 600

HERITAGE ASSETS 9.3

Museum pieces and artworks 386 428 386 428

General 2 834 674 (18 628) 2 816 046

3 221 102 0 0 (18 628) 3 202 474

HOUSING 9.4

Dwellings: Indigent 1 156 316 1 156 316

General 29 173 782 (32 330) 29 141 452


227 228 983 0 (59 745 969) (32 330) 167 450 684

ANNEXURE BANALYSIS OF PROPERTY, PLANT AND EQUIPMENT AS AT 30 JUNE 2007: GROUP

147





R R R R R

2 530 656 402 580 2 933 236 6 969 348

589 570 745 76 222 100 (40 977 781) 624 815 064 1 142 107 813

190 706 125 26 901 123 (162 409 583) 55 197 665 91 290 736

760 550 737 104 762 643 (60 863 818) 804 449 562 1 466 948 147

19 796 397 11 006 803 162 092 30 965 292 35 799 371

192 369 579 30 224 114 (2 427 842) 220 165 851 525 649 922

116 211 150 59 713 672 140 511 345 316 436 167 679 791 153

6 144 812 1 123 318 (528 439) 6 739 691 17 699 140

0 0 1 363 272 044

1 035 143 867 108 1 902 251 8 318 000

1 878 915 344 311 223 461 (126 534 026) 2 063 604 779 5 337 845 674

118 461 265 11 290 520 (6 147 645) 123 604 140 56 508 100

58 454 589 9 442 699 (721 399) 67 175 889 80 171 818

35 998 653

176 915 854 20 733 219 (6 869 044) 190 780 029 172 678 571

0 0 386 428

0 0 2 816 046

0 0 0 0 3 202 474

136 010 42 753 178 763 977 553

7 018 618 1 272 066 (32 330) 8 258 354 20 883 098

137 152 916

7 154 628 1 314 819 (32 330) 8 437 117 159 013 567


Asset class Note

Cost/revaluation



R R R R R

OTHER 9.5

General 163 204 589 7 840 297 (15 352 197) 155 692 689

Books 13 082 406 (142 591) 12 939 815

Emergency equipment 9 840 136 (20 679) 9 819 457

Furniture and fittings 17 834 627 (3 427 412) 14 407 215

Computer equipment 176 181 449 499 002 (32 419 719) 144 260 732

Office equipment 11 436 190 (1 004 183) 10 432 007

Plant and equipment 138 295 647 2 607 811 (11 299 710) 129 603 748

Vehicles 279 908 488 12 824 813 (49 622 422) 243 110 879

Assets under construction 29 178 096 39 967 354 0 69 145 450

Tradepoint Pretoria 0 0

Cenbis: Furniture and equipment 580 824 580 824

Housing Company: Furniture and equipment 289 732 (12) 289 720

Sandspruit: Other equipment 6 056 200 806 696 6 862 896

Civirelo: Office, IT equipment and software

85 940 85 940

Roodeplaat/Temba: Work in progress 459 637 682 10 093 828 0 469 731 510

1 305 612 006 34 672 447 39 967 354 (113 288 925) 1 266 962 882

INVESTMENT PROPERTY 9.6

Parking 1 323 390 450 000 1 773 390

Industrial sidings 383 906 383 906

Housing Company: Investment property 7 490 657 7 490 657

9 197 953 450 000 0 0 9 647 953

INTANGIBLE ASSETS 9.7

Computer software 198 133 925 171 421 0 9 718 652 208 023 998

LAND AND BUILDINGS 9.9

Land 1 095 638 195 10 452 013 38 427 340 1 144 517 548

Buildings 1 121 682 404 110 514 007 110 392 325 1 342 588 736

Sandspruit ODI: Land and buildings 4 670 679 1 467 036 6 137 715

2 221 991 278 122 433 056 0 148 819 665 2 493 243 999

LEASED ASSETS 9.8

Roodeplaat/Temba: Plant and equip-ment

19 116 417 (1 477 352) 17 639 065

19 116 417 0 0 (1 477 352) 17 639 065

TOTAL 9.1 10,831,984,494 385,488,949 208,739,914 504,866,751 11,931,080,108

ANNEXURE BANALYSIS OF PROPERTY, PLANT AND EQUIPMENT AS AT 30 JUNE 2007: GROUP

149





R R R R R

60 417 157 22 025 080 (16 583 216) 65 859 021 89 833 668

8 721 817 4 328 976 (110 979) 12 939 814 1

4 631 193 2 777 438 125 923 7 534 554 2 284 903

3 591 838 1 644 838 (1 055 436) 4 181 240 10 225 975

110 430 579 36 472 685 (32 636 002) 114 267 262 29 993 470

3 305 741 2 199 699 (518 361) 4 987 079 5 444 928

60 184 934 25 838 159 (8 031 761) 77 991 332 51 612 416

128 472 975 35 793 026 (51 154 328) 113 111 673 129 999 206

0 0 69 145 450

0 0 0

550 463 550 463 30 361

153 469 59 704 299 213 472 76 248

3 758 417 735 503 4 493 920 2 368 976

33 000 37 100 70 100 15 840

22 802 637 36 023 117 1 615 488 60 441 242 409 290 268

407 054 220 167 935 325 (108 348 373) 466 641 172 800 321 710

3 676 45 363 49 039 1 724 351

25 594 12 797 38 391 345 515

0 0 7 490 657

29 270 58 160 0 87 430 9 560 523

39 614 085 40 260 980 2 800 000 82 675 065 125 348 933

5 801 068 (5 795 036) 6 032 1 144 511 516

380 968 768 54 780 600 (3 654 670) 432 094 698 910 494 038

640 727 148 206 788 933 5 348 782

387 410 563 54 928 806 (9 449 706) 432 889 663 2 060 354 336

2 461 963 493 671 (190 265) 2 765 369 14 873 696

2 461 963 493 671 (190 265) 2 765 369 14 873 696

2,899,555,927 596,948,441 (248,623,744) 3,247,880,624 8,683,199,486

150


Departments

Cost/revaluation



R R R R R

Governance Services 2 067 032 (68 779) 1 998 253

Municipal Manager 466 362 (46 151) 420 211

Chief Operating Officer 60 389 857 11 034 546 (28 859) 71 395 544

Emergency Management Services 152 743 644 3 982 704 8 004 453 597 541 165 328 342

Corporate Services 1 844 580 978 14 124 197 26 761 393 (48 512 712) 1 836 953 856

Economic Development 307 868 352 19 300 998 22 915 335 (17 501 354) 332 583 331

Financial Services 54 378 877 (9 638 455) 44 740 422

Housing, City Planning and Environmental

Management

1 843 772 720 84 328 227 (236 509 403) 286 668 611 1 978 260 155

Legal and Secretarial Services 25 522 654 549 986 (18 240) 26 054 400

Marketing and Tourism 709 958 (21 138) 688 820

Metro Police Services 91 061 868 11 174 678 14 105 701 (6 686 729) 109 655 518

Social Development 373 001 061 73 325 790 (37 484 555) 56 688 474 465 530 770

Service Delivery: 3 592 118 452 90 768 995 285 253 724 162 065 770 4 130 206 941

Roads and Stormwater 2 016 320 025 372 586 116 565 633 51 555 687 2 184 813 931

Water and Sanitation 1 575 798 427 90 396 409 168 688 091 110 510 083 1 945 393 010

Electricity 1 978 187 318 73 082 782 114 108 730 82 846 137 2 248 224 967

TOTAL 10 326 869 133 370 088 371 208 739 910 506 344 116 11 412 041 530

ANNEXURE CSEGMENTAL ANALYSIS OF PROPERTY, PLANT AND EQUIPMENT AS AT 30 JUNE 2007: PARENT

151





R R R R R

997 707 484 784 (58 198) 1 424 293 573 960

106 554 73 764 (37 077) 143 241 276 970

965 873 651 539 (12 757) 1 604 655 69 790 889

56 460 716 18 709 094 (1 156 779) 74 013 031 91 315 311

351 414 006 117 112 033 (56 422 164) 412 103 875 1 424 849 981

78 914 748 16 906 559 (22 462 070) 73 359 237 259 224 094

29 136 883 7 693 697 (9 562 441) 27 268 139 17 472 283

344 484 606 69 334 616 (42 361 891) 371 457 331 1 606 802 824

1 244 119 664 320 (7 945) 1 900 494 24 153 906

135 757 64 646 (8 406) 191 997 496 823

30 458 956 13 703 218 (3 915 477) 40 246 697 69 408 821

101 462 058 23 313 151 (4 065 880) 120 709 329 344 821 441

1 179 339 305 191 401 371 (52 217 511) 1 318 523 165 2 811 683 776

727 224 735 96 626 927 (62 831 274) 761 020 388 1 423 793 543

452 114 570 94 774 444 10 613 763 557 502 777 1 387 890 233

692 998 820 98 471 240 (57 760 670) 733 709 390 1 514 515 577

2 868 120 108 558 584 032 (250 049 266) 3 176 654 874 8 235 386 657

152


Departments

Cost/Revaluation Accumulated depreciation

Carrying

valueOpening

balanceAdditions

Under Con-

struction

Disposals,

transfers

and adjust-

ments

Closing

balance

Opening

balanceAdditions

Disposals,

transfers and

adjustments

Closing

balance

R R R R R R R R R R

Governance

Services

2 067 032 (68 779) 1 998 253 997 707 484 784 (58 198) 1 424 293 573 960

Municipal

Manager

466 362 (46 151) 420 211 106 554 73 764 (37 077) 143 241 276 970

Chief Operating

Officer

60 389 857 11 034 546 (28 859) 71 395 544 965 873 651 539 (12 757) 1 604 655 69 790 889

Emergency

Management

Services

152 743 644 3 982 704 8 004 453 597 541 165 328 342 56 460 716 18 709 094 (1 156 779) 74 013 031 91 315 311

Corporate

Services

1 844 580 979 14 124 197 26 761 393 (48 512 712) 1 836 953 857 351 414 006 117 112 033 (56 422 164) 412 103 875 1 424 849 982

Economic

Development

308 449 176 19 300 998 22 915 335 (17 501 354) 333 164 155 79 465 211 16 906 559 (22 462 070) 73 909 700 259 254 455

Financial

Services

54 378 877 (9 638 455) 44 740 422 29 136 883 7 693 697 (9 562 441) 27 268 139 17 472 283

Housing, City

Planning and

Environmental

Management

1 851 553 109 84 328 227 (236 509 403) 286 668 611 1 986 040 544 344 638 075 69 334 616 (42 361 891) 371 610 800 1 614 429 744

Legal and

Secretarial

Services

25 522 654 549 986 (18 240) 26 054 400 1 244 119 664 320 (7 945) 1 900 494 24 153 906

Marketing and

Tourism

709 958 (21 138) 688 820 135 757 64 646 (8 406) 191 997 496 823

Metro Police

Services

91 061 868 11 174 678 14 105 701 (6 686 729) 109 655 518 30 458 956 13 703 218 (3 915 477) 40 246 697 69 408 821

Social

Development

373 001 060 73 325 790 (37 484 555) 56 688 462 465 530 757 101 462 058 23 372 855 (4 065 581) 120 769 332 344 761 425

Service Delivery: 4 088 872 600 106 169 576 285 253 724 160 588 420 4 640 884 320 1 210 071 191 229 706 074 (50 792 287) 1 388 984 978 3 251 899 342

Roads and

Stormwater

2 016 320 025 372 586 116 565 633 51 555 687 2 184 813 931 727 224 735 96 626 927 (62 831 274) 761 020 388 1 423 793 543

Water and

Sanitation

2 072 552 575 105 796 990 168 688 091 109 032 733 2 456 070 389 482 846 456 133 079 147 12 038 987 627 964 590 1 828 105 799

Electricity 1 978 187 318 73 082 782 114 108 730 82 846 137 2 248 224 967 692 998 820 98 471 242 (57 760 669) 733 709 393 1 514 515 574

10 831 984 494 385 488 952 208 739 910 504 866 754 11 931 080 110 2 899 555 926 596 948 441 (248 623 742) 3 247 880 625 8 683 199 486

ANNEXURE CSEGMENTAL ANALYSIS OF PROPERTY, PLANT AND EQUIPMENT AS AT 30 JUNE 2007: GROUP

153

ANNEXURE DCONSOLIDATED SEGMENTAL STATEMENT OF PERFORMANCE FOR THE YEAR ENDED 30 JUNE 2007

MUNICIPALITY

2007 2006

SERVICE Actual IncomeActual

ExpenditureSurplus/ (Deficit)

Original Budget

Surplus/ (Deficit)Actual Income

Actual


R R R R R R R

Governing Services 311,725 105,305,696 (104,993,971) (117,551,441) 564,349 123,373,050 (122,808,701)

Municipal Manager 735,230 98,500,356 (97,765,126) (138,496,605) 5,281 26,578,403 (26,573,122)

Emergency Management

Services36,332,635 232,333,288 (196,000,653) (211,735,814) 35,556,025 203,691,779 (168,135,754)

Corporate Services 46,077,730 786,583,576 (740,505,846) (713,453,365) 50,594,426 863,860,425 (813,265,999)

Economic Development 156,560,575 378,087,419 (221,526,844) (179,219,353) 141,146,200 317,552,221 (176,406,021)

Finance 3,299,593,111 969,620,200 2,329,972,911 1,968,422,831 3,659,207,975 1,434,004,442 2,225,203,533

Housing, Planning &

Environmental Services523,198,050 1,340,322,326 (817,124,276) (651,629,292) 419,221,532 1,103,001,886 (683,780,354)

Legal and Secretarial

Services77,656 72,750,288 (72,672,632) (77,070,574) 1,219,138 68,981,897 (67,762,759)

Metro Police 122,633,746 464,367,134 (341,733,388) (354,248,533) 99,326,805 407,151,115 (307,824,310)

Social Development 57,855,485 336,979,980 (279,124,495) (286,297,174) 18,176,317 258,618,479 (240,442,162)

Service Delivery: 1,581,289,274 2,031,811,961 (450,522,687) (452,585,140) 1,203,137,144 1,654,343,024 (451,205,880)

Roads & Stormwater 59,903,280 622,600,734 (562,697,454) (568,275,316) 13,451,459 503,193,540 (489,742,081)

Waste water treatment 27,244,420 129,521,971 (102,277,551) (92,050,934) 1,875,394 129,226,504 (127,351,110)

Waste water collection 322,150,751 100,259,746 221,891,005 197,396,915 234,447,622 65,622,001 168,825,621

Water supply 1,171,990,823 1,179,429,510 (7,438,687) 10,344,195 953,362,669 956,300,979 (2,938,310)

Electricity 2,779,789,738 2,859,579,109 (79,789,371) 58,617,769 2,575,965,247 2,460,132,909 115,832,338

Subtotal 8,604,454,955 9,676,241,333 (1,071,786,378) (1,155,246,691) 8,204,120,439 8,921,289,630 (717,169,191)

1,388,106,007 1,356,770,119 1,285,190,920

Less: Departmental

charges and other internal

costs

SURPLUS FOR THE YEAR

316,319,629 201,523,428 568,021,729

154



ROODEPLAAT TEMBA

2007 2006



Original Budget


Actual

Expenditure

Surplus/

(Deficit)

R R R R R R R

Governing Services

Municipal Manager


Services

Corporate Services

Economic Development

Finance

Housing, Planning &

Environmental Services


Services

Metro Police

Social Development

Service Delivery: (10,542,693) 40,773,601 (51,316,294) (10,657,710) (24,791,052) 14,133,342

Roads & Stormwater

Waste water treatment

Waste water collection

Water supply (10,542,693) 40,773,601 (51,316,294) (10,657,710) (24,791,052) 14,133,342

Electricity

Subtotal (10,542,693) 40,773,601 (51,316,294) (10,657,710) (24,791,036) 14,133,342

0 0

Less: Departmental


costs


(51,316,294) 14,133,342

155

CIVIRELO

2007 2006



Original Budget


Actual


R R R R R R R

Governing Services

Municipal Manager


Services

Corporate Services


Finance

Housing, Planning &



Services

Metro Police

Social Development

Service Delivery: 46,115,714 60,343,920 (14,228,206) 75,026,687 60,348,931 14,677,756

Roads & Stormwater



Water supply 46,115,714 60,343,920 (14,228,206) 75,026,687 60,348,931 14,677,756

Electricity

Subtotal 46,115,714 60,343,920 (14,228,206) 75,026,687 60,348,931 14,677,756

Less: Departmental


costs

0 0


(14,228,206) 14,677,756

156



HOUSING COMPANY TSHWANE

2007 2006



Original Budget


Actual


R R R R R R R

Governing Services

Municipal Manager


Services

Corporate Services


Finance

Housing, Planning &



Services

Metro Police

Social Development 14,331,235 17,668,108 (3,336,873) 7,505,873 5,987,689 1,518,184

Service Delivery:

Roads & Stormwater



Water supply

Electricity

Subtotal 14,331,235 17,668,108 (3,336,873) 7,505,873 5,987,689 1,518,184

Less: Departmental


costs

0 0


(3,336,873) 1,518,184

157

SANDSPRUIT (ODI & Waste)

2007 2006



Original Budget


Actual


R R R R R R R

Governing Services

Municipal Manager


Services

Corporate Services


Finance

Housing, Planning &



Services

Metro Police

Social Development

Service Delivery: 139,329,351 140,205,615 (876,264) 156,761,250 146,028,990 10,732,260

Roads & Stormwater

Waste water treatment 139,329,351 140,205,615 (876,264) 156,761,250 146,028,990 10,732,260


Water supply

Electricity

Subtotal 139,329,351 140,205,615 (876,264) 156,761,250 146,028,990 10,732,260

Less: Departmental


costs

0 0


(876,264) 10,732,260



ENTERPRISE SOUTH AFRICA

2007 2006



Original Budget


Actual


R R R R R R R

Governing Services

Municipal Manager


Services

Corporate Services

Economic Development 0 0 0 0

Finance

Housing, Planning &



Services

Metro Police

Social Development

Service Delivery:

Roads & Stormwater



Water supply

Electricity

Subtotal 0 0 0 0 0 0 0

Less: Departmental


costs

0 0


0 0

159

TRADE POINT PRETORIA

2007 2006



Original Budget


Actual


R R R R R R R

Governing Services

Municipal Manager


Services

Corporate Services

Economic Development 3,650 30,258 (26,608) 271,340 421,354 (150,014)

Finance

Housing, Planning &



Services

Metro Police

Social Development

Service Delivery: 0 0 0 0 0 0

Roads & Stormwater

Waste water treatment 0 0 0 0 0 0


Water supply

Electricity

Subtotal 3,650 30,258 (26,608) 271,340 421,354 (150,014)

Less: Departmental


costs

0 0


(26,608) (150,014)

160



CENBIS

2007 2006



Original Budget


Actual


R R R R R R R

Governing Services

Municipal Manager


Services

Corporate Services

Economic Development 0 904,265 1,179,105 (274,840)

Finance

Housing, Planning &



Services

Metro Police

Social Development

Service Delivery: 0 0 0 0 0 0

Roads & Stormwater

Waste water treatment 0 0 0 0 0 0


Water supply

Electricity

Subtotal 0 0 0 904,265 1,179,105 (274,840)

Less: Departmental


costs

0 0


0 (274,840)

161

GROUP

2007 2006



Adjustment

Budget Surplus/

(Deficit)

Actual IncomeActual

Expenditure

Surplus/

(Deficit)

R R R R R R R

Governing Services 311,725 105,305,696 (104,993,971) (117,551,441) 564,349 123,373,050 (122,808,701)

Municipal Manager 735,230 98,500,356 (97,765,126) (138,496,605) 5,281 26,578,403 (26,573,122)


Services36,332,635 232,333,288 (196,000,653) (211,735,814) 35,556,025 203,691,779 (168,135,754)

Corporate Services 46,077,730 786,583,576 (740,505,846) (713,453,365) 50,594,426 863,860,425 (813,265,999)

Economic Development 156,564,225 378,117,677 (221,553,452) (179,219,353) 142,321,805 319,152,680 (176,830,875)

Finance 3,299,593,111 969,620,200 2,329,972,911 1,968,422,831 3,659,207,975 1,434,004,442 2,225,203,533

Housing, Planning &

Environmental Services523,198,050 1,340,322,326 (817,124,276) (651,629,292) 419,221,532 1,103,001,886 (683,780,354)


Services77,656 72,750,288 (72,672,632) (77,070,574) 1,219,138 68,981,897 (67,762,759)

Metro Police 122,633,746 464,367,134 (341,733,388) (354,248,533) 99,326,805 407,151,115 (307,824,310)

Social Development 72,186,720 354,648,088 (282,461,368) (286,297,174) 25,682,190 264,606,168 (238,923,978)

Service Delivery: 1,756,191,646 2,273,135,097 (516,943,451) (452,585,140) 1,424,267,371 1,835,929,893 (411,662,522)

Roads & Stormwater 59,903,280 622,600,734 (562,697,454) (568,275,316) 13,451,459 503,193,540 (489,742,081)

Waste water treatment 166,573,771 269,727,586 (103,153,815) (92,050,934) 158,636,644 275,255,494 (116,618,850)

Waste water collection 322,150,751 100,259,746 221,891,005 197,396,915 234,447,622 65,622,001 168,825,621

Water supply 1,207,563,844 1,280,547,031 (72,983,187) 10,344,195 1,017,731,646 991,858,858 25,872,788

Electricity 2,779,789,738 2,859,579,109 (79,789,371) 58,617,769 2,575,965,247 2,460,132,909 115,832,338

Subtotal 8,793,692,212 9,935,262,835 (1,141,570,623) (1,155,246,691) 8,433,932,144 9,110,464,647 (676,532,503)

Less: Departmental


costs

1,388,106,007 1,285,190,920


246,535,384 608,658,417

162


DESCRIPTIONActual Budget Variance Variance

R R R %

REVENUE

Property rates 1 719 158 593 1 735 113 478 (15 954 885) (0,92)

Service charges 4 272 214 160 4 246 657 264 25 556 896 0,60

Regional Services Levies – turnover (38 135) 16 000 000 (16 038 135) (100,24)

Rental of facilities and equipment 84 451 009 56 193 546 28 257 463 50,29

Interest earned – external investments 154 277 171 47 942 050 106 335 121 221,80

Interest earned – outstanding debtors 155 842 736 137 007 800 18 834 936 13,75

Fines (traffic fines) 38 389 834 42 742 689 (4 352 855) (10,18)

Licences and permits 21 816 684 34 297 845 (12 481 161) (36,39)

Government grants and subsidies 1 541 794 233 1 749 343 822 (207 549 589) (11,86)

Other income 618 748 440 457 747 540 161 000 900 35,17

Public contributions 165 566 509 50 012 825 115 553 684 231,05

Gains on the disposal of property, plant and equipment 20 915 400 14 500 000 6 415 400 44,24

Gain: Change in fair value of livestock 555 578 0 555 578 100,00

Total revenue 8 793 692 212 8 587 558 859 206 133 353 2,40

EXPENDITURE

Employee-related costs 2 445 747 160 2 551 422 155 (105 674 995) (4,14)

Remuneration of councillors 45 946 048 46 762 692 (816 644) (1,75)

Bad debts: Contribution 114 705 781 106 649 267 8 056 514 7,55

Bad debts: Written off 86 736 741 0 86 736 741 100,00

Collection costs 49 538 121 50 669 138 (1 131 017) (2,23)

Depreciation 598 373 961 592 729 286 5 644 675 0,95

Interest paid on external borrowings 387 774 358 345 899 657 41 874 701 12,11

Bulk purchases 2 136 832 836 1 989 821 178 147 011 658 7,39

Repairs and maintenance 731 219 500 674 906 579 181 701 633 26,92

Grants and subsidies paid 8 392 257 11 634 800 (3 242 543) (27,87)

Loss on disposal of property, plant and equipment 9 917 937 5 525 863 4 392 074 79,48

General expenses – other 1 931 972 128 2 010 014 816 (78 042 688) (3,88)

Total expenditure 8 547 156 828 8 386 035 431 161 121 397 1,92

NET SURPLUS/(DEFICIT) FOR THE YEAR 246 535 384 201 523 428 45 011 956 22,34

ANNEXURE EACTUAL OPERATING REVENUE AND EXPENDITURE PER TYPE VERSUS THE BUDGET

FOR THE YEAR ENDED 30 JUNE 2007

163

Explanation of significant variances (greater than 10%) versus budget

Levies were based on turnover of companies. Abolished from 1 July 2006.

Bus rentals realised more than projected owing to greater demand. Data purification on municipal-owned leased properties resulted in more rentals than previously projected.

Favourable growth rate compared to the conservative planned budget.

Owing to a decision of the National Director of Public Prosecutions to limit the lifespan of fines to two years. The implementation of a website for electronic payments and credit

card payment was an effort to address the shortfall in fines.

Provincial Call Centre could only handle a booking level of less than 40% for driver’s licence testing. The switchover to e-Natis in April 2007 hampered revenue collection.

Project-linked housing (top structure) grants budgeted for but not received. Restructuring grant - only R25 million was received of the budgeted R75 million. Communiqué from

EM to MEC with request to release allocation of R50 million submitted.

Conservative planned budget - increase in reconnection fees, market fees, transport fees and land sales.

Budgeted conservatively - major increase in endowment contributions and township development contributions.

During adjustments budget a conservative amount was budgeted due to uncertainty about this type of revenue.

Amount not budgeted for.

Savings were owing to non-filling of vacancies.

Amount not budgeted for.

Depreciation did not realise fully owing to the late spending on capital projects and purifying of assets under construction.

Fewer external loans were taken up than anticipated owing to lower than expected expenditure on capital.

Actual load growth increased for both bulk water and electricity with 1,6% from budgeted 4%. Growth load increased due to harsh winter and severe drought conditions.

Fewer applications for grants and subsidies were received than anticipated during budget process.

More items were disposed of against a loss than anticipated during the budget process.

164


DESCRIPTIONActual Budget Variance Variance

R R R %

REVENUE

Political office 311 725 188 674 123 051 65,22

Municipal Manager 735 230 4 732 663 (3 997 433) (84,46)

Emergency Management Services 36 332 635 33 758 659 2 573 976 7,62

Corporate Services 46 077 730 52 422 742 (6 345 012) (12,10)

Economic Development 156 564 225 175 373 945 (18 809 720) (10,73)

Finance 3 299 593 111 3 112 944 599 186 648 512 6,00

Housing, City Planning and Environmental Management 523 198 050 668 157 206 (144 959 156) (21,70)

Legal and Secretarial Services 77 656 352 283 (274 627) (77,96)

Metro Police 122 633 746 127 471 869 (4 838 123) (3,80)

Social Development 72 186 720 61 576 927 10 609 793 17,23

Service Delivery: 1 756 191 646 1 537 535 585 218 656 061 14,22

Roads and Stormwater 59 903 280 72 216 679 (12 313 399) (17,05)

Waste Water Treatment 166 573 771 27 379 286 139 194 485 508,39

Waste Water Collection 322 150 751 300 092 296 22 058 455 7,35

Water Supply 1 207 563 844 1 137 847 324 69 716 520 6,13

Electricity 2 779 789 738 2 813 043 707 (33 253 969) (1,18)

Total revenue 8 793 692 212 8 587 558 859 206 133 353 2,40

EXPENDITURE

Political office 105 305 696 117 740 115 (12 434 419) (10,56)

Municipal Manager 98 500 356 143 229 268 (44 728 912) (31,23)

Emergency Management Services 232 333 288 245 494 473 (13 161 185) (5,36)

Corporate Services 786 583 576 765 876 107 20 707 469 2,70

Economic Development 378 117 677 354 593 298 23 524 379 6,63

Finance 969 620 200 1 144 521 768 (174 901 568) (15,28)

Housing, City Planning and Environmental Management 1 340 322 326 1 319 786 498 20 535 828 1,56

Legal and Secretarial Services 72 750 288 77 422 857 (4 672 569) (6,04)

Metro Police 464 367 134 481 720 402 (17 353 268) (3,60)

Social Development 354 648 088 347 874 101 6 773 987 1,95

Service Delivery: 2 273 135 097 1 990 120 725 283 014 372 14,22

Roads and Stormwater 622 600 734 640 491 995 (17 891 261) (2,79)

Waste Water Treatment 269 727 586 119 430 220 150 297 366 125,85

Waste Water Collection 100 259 746 102 695 381 (2 435 635) (2,37)

Water Supply 1 280 547 031 1 127 503 129 153 043 902 13,57

Electricity 2 859 579 109 2 754 425 938 105 153 171 3,82

Net expenditure 9 935 262 835 9 742 805 550 192 457 285

Less: Departmental charges and other internal costs 1 388 106 007 1 356 770 119 31 335 888

Net expenditure 8 547 156 828 8 386 035 431 161 121 397 0

NET SURPLUS/(DEFICIT) FOR THE YEAR 246 535 384 201 523 428 45 011 956 (8,76)

ANNEXURE FSEGMENTAL ANALYSIS: ACTUAL OPERATING REVENUE AND EXPENDITURE PER STRATEGIC UNIT VERSUS

BUDGET FOR THE YEAR ENDED 30 JUNE 2007

165

Explanation of significant variances (greater than 10%) versus the budget

More revenue from rental of facilities realised than projected during the budget.

Capex grants not recognised as revenue due to non-spending on capital projects.

Grants and subsidies received not recognised as revenue due to under/non-spending on projects. Sale of aeroplane fuel realised less than budgeted.

Fewer top structure grants for project-linked housing were received than projected.

Nominal amount budgeted, which did not realise as projected.

Capital grants and donations not recognised as revenue due to underspending on capital projects.

Savings on employee costs, depreciation and general expenditure.

Savings on employee costs, depreciation and general expenditure.

Underspending on Restructuring Grant allocation; MSIG; feasibility studies corporately budgeted and allocated; saving due to VAT corrections.

166


DepartmentAdditions/actual Assets under construction Total additions

R R R

Municipal Manager 8 129 338 11 034 546 19 163 884

Emergency Management Services 5 502 124 8 004 453 13 506 577

Corporate Services 36 324 211 26 761 393 63 085 604

Economic Development 23 016 448 22 915 335 45 931 783

Financial Services 4 996 367 4 996 367

Housing, City Planning and Environmental Management 473 100 389 (236 509 403) 236 590 986

Legal and Secretarial Services 0 549 986 549 986

Metro Police Services 10 886 868 14 105 701 24 992 569

Social Development 133 002 874 (37 484 555) 95 518 319

Service Delivery: 258 835 724 285 253 724 544 089 448

Roads and Stormwater 117 626 272 116 565 633 234 191 905

Water and Sanitation 141 209 452 168 688 091 309 897 543

Electricity 203 309 752 114 108 730 317 418 482

Net expenditure 1 157 104 095 208 739 910 1 365 844 005

ANNEXURE GACTUAL CAPITAL EXPENDITURE VERSUS BUDGET

FOR THE YEAR ENDED 30 JUNE 2007: PARENT ONLY

167

Budget Variance Variance Explanation of significant variances (greater than 5%) versus budget

R R %

48 500 000 29 336 116 60,49 Tender process for ward projects started late in financial year.

13 700 000 193 423 1,41

67 000 000 3 914 396 5,84 Tender process started late in financial year.

76 330 000 30 398 217 39,82 Work delayed by environmental inputs and tender process.

21 800 000 16 803 633 77,08 Large amount provided for replacement of assets via insurance claims.

295 935 000 59 344 014 20,05 External funding limited by grants received from province - claims had to be expedited; land purchasing delayed by

price negotiations and legal process.

5 000 000 4 450 014 89,00 Legal processes delayed purchasing of land.



607 489 000 63 399 552 10,44

293 345 000 59 153 095 20,17 Tender process delayed, EIA approval delayed, surety delays by contractors.

314 144 000 4 246 457 1,35

318 548 000 1 129 518 0,35

1 590 251 000 224 406 995 14,11


Name of grant Name of organ of state or municipal entity Quarterly receipts

Opening

balance

Sept Dec Mar

R R R R

Capital grants:

Roodeplaat/Temba: Magalies Water Magalies Water 0 0 0 0

Roodeplaat/Temba: DWAF Department of Water Affairs and Forestry 0 0 0 0

Economic Development Gauteng Sport and Recreation 3 478 630 174 502 1 800 000

National Electricity Fund National Electricity Regulator 4 054 573

Gauteng project-linked housing Gauteng: Housing Department 0 24 621 000 8 835 000 11 610 102

North-West project-linked housing North-West: Housing 3 873 808 13 141 964

Municipal Infrastructure Grant (MIG) Department of Provincial and Local Government 0 15 000 000 85 000 000 80 697 438

Gautrans job creation Gautrans 5 000 000

Water and Sanitation Department of Water Affairs and Forestry 13 990 911

Electricity for All Department of Mineral and Energy Affairs 0 6 250 000 7 000 000 15 350 000

Transportation Gauteng Department of Transportation Engineering 1 500 000

Eskom Eskom 5 780 000

World Cup Soccer 2010 Gauteng Department of Transportation Engineering 13 150 000 11 000 000

Unforeseen water problems Gauteng Department of Public Works 8 022 068

53 069 990 57 045 502 113 976 964 115 237 540

Operational grants/subsidies:

HIV/Aids Department of Provincial and Local Government 5 443 600

Transportation Gauteng Department of Transportation 116 440

Ambulance subsidy Gauteng Department of Health 0 7 898 006 7 767 250 7 767 250

Health subsidy National Department of Health 0 3 080 000 5 900 000 7 075 000

National Safety Grant National Department of Safety 0 399 925 18 793

Top structures: project-linked housing North-West Housing 5 008 806

Finance Management Grant National Treasury 3 121 266 500 000

Restructuring Grant National Treasury 102 292 860 25 000 000

Municipal System Improvement Grant National Treasury 5 000 000

Equitable share Department of Provincial and Local Government 0 334 283 465 250 662 466 417 703 934

Economic Development Gauteng Sport, Recreation, Arts and Culture 0 460 000

Refurbishment of Temba Works Department of Water Affairs and Forestry 0 0 8 641 400 5 576 800

Housing accreditation Gauteng Housing Department 0

Bontle ke Botho Gauteng: Agriculture, Conservation and Environment 360 000

Library Gauteng Department of Library and Information Services 526 900 500 000

Tourism Gauteng Department of Tourism 400 000

Environmental Gauteng Agriculture, Conservation and Environment 460 000

Motor vehicle licences refund Gauteng Department of Transport 0 10 088 874 14 931 497 14 117 415

Unforeseen water problems Gauteng Department of Public Works 700 000

Miscellaneous Various 0 525 663

123 429 872 356 250 270 313 881 406 452 240 399

Revenue per statement of financial performance (see Note 20)

Unspent conditional grants per statement of financial position (see Note 7)

ANNEXURE HDISCLOSURES OF GRANTS AND SUBSIDIES IN TERMS OF SECTION 123 OF THE MFMA (ACT 56 OF

2003): GRANTS AND SUBSIDIES RECEIVED DURING THE FINANCIAL YEAR ENDED 30 JUNE 2007

169

Expenditure Closing

balance

Grants and sub-

sidies delayed/

withheld

Reason for delay/

withholding of

funds

Did your municipality comply with

the grant conditions in terms of grant

framework in the latest Division of

Revenue Act

Reason for

non-compli-

ance

Jun Total Jun Jul to Jun

R R R R

8 040 8 040 8 040 0 None None Yes n/a

692 552 692 552 692 552 0 None None Yes n/a

4 350 000 9 803 132 2 053 291 7 749 841 None None Yes n/a

4 054 573 28 790 4 025 783 None None Yes n/a

42 448 170 87 514 272 65 400 571 22 113 701 None None Yes n/a

5 810 288 22 826 060 20 903 610 1 922 450 None None Yes n/a

25 246 562 205 944 000 186 149 095 19 794 905 None None Yes n/a

5 000 000 0 5 000 000 None None Yes n/a

22 000 000 35 990 911 13 998 583 21 992 328 None None Yes n/a

0 28 600 000 28 600 000 0 None None Yes n/a

1 500 000 3 000 000 0 3 000 000 None None Yes n/a

5 780 000 0 5 780 000 None None Yes n/a

24 150 000 0 24 150 000 None None Yes n/a

8 022 068 700 000 7 322 068 None None Yes n/a

102 055 612 441 385 608 318 534 532 122 851 076

5 443 600 5 443 600 0 None None Yes n/a

116 440 116 440 0 None None Yes n/a

7 767 250 31 199 756 31 199 756 0 None None Yes n/a

2 000 000 18 055 000 16 055 000 2 000 000 None None Yes n/a

418 718 418 718 0 None None Yes n/a

34 005 716 39 014 522 39 014 522 0 R78 3 million NHRBC enrolment

awaited

Yes n/a

0 3 621 266 2 117 863 1 503 403 None None Yes n/a

127 292 860 48 371 166 78 921 694 R50 million Slow performance Yes n/a

5 000 000 2 000 000 3 000 000 None None Yes n/a

1 002 649 865 1 002 649 865 0 None None Yes n/a

460 000 0 460 000 None None Yes n/a

445 750 14 663 950 14 264 950 399 000 None None Yes n/a

1 678 535 1 678 535 0 1 678 535 None None Yes n/a

360 000 182 777 177 223 None None Yes n/a

60 000 1 086 900 1 086 900 0 None None Yes n/a

400 000 400 000 0 None None Yes n/a

460 000 460 000 0 None None Yes n/a

19 114 697 58 252 483 58 252 483 0

700 000 700 000 0 None None Yes n/a

525 663 525 661 2 None None Yes n/a

65 071 948 1 311 399 558 1 223 259 701 88 139 855

1 541 794 233

210 990 931

4.1 PERFORMANCE REPORT

Chapter 4

170


4.1.1 STRATEGIC OBJECTIVES

Accelerate higher and shared economic growth and development

4.1.2 KEY PERFORMANCE AREAS

KPA KPI BACKLOG

Eradication/reduction of infrastructure backlogs The percentage of households1 with access to basic

levels of service (water, sanitation, electricity, solid

waste removal ), roads and stormwater and housing

(NKPI)

Backlogs

In view of this indicator being an aggregated indicator,

the backlogs per type of service differed and are

discussed below per service.

146 664 households were living in informal settlements

of which 93% (136 397 residents) were South African

citizens.

240 969 informal dwelling units had to be formalised.

23,6% of the total households lived in informal settle-

ments.

1. For purposes of the 2006/07 financial year the total number of households in Tshwane was estimated at 620 210 as per Stats SA General Household Survey 2005.

171

FIVE-YEAR PROGRAMME TARGET 2006/07

TARGET

ACHIEVED 2006/07

(Reported against the indicator

(KPI)/measure)

COMMENTS ON

VARIANCE

Eradicate basic services backlogs equal to or lower

than national targets.

Targets set per

function

Housing: 80% of 136 000 = 112 000. 6 000 top

structures

7 609

Of the 146 644 households living in informal settlements

at the beginning of the financial year, 139 055 still lived

in informal settlements, which equalled 22,4% of the

population of 620 210.

Of the 620 210 households, 481 155 (77,6%) had

access to formal housing.

65 settlements2 could be formalised.

By 2009, all informal settlements that could be

established as townships would be established and the

rest would be established by 2014.

20% of 65

settlements

that could be

established =

13.

18 areas were proclaimed. It needs to be understood that

there was a difference between

establishing a settlement,3

proclaiming a township4 and

formalising informal settlements.5

2. For purposes of the 2006/07 financial year the total number of households in Tshwane was estimated at 620 210 as per Stats SA General Household Survey 2005.3. As per HCPEM departmental detail report for the fourth quarter of 2006/07.4. Established township = township approved by the Council.5. Proclaimed township = township proclaimed in the Provincial Gazette after it was approved by the Council.


Chapter 4

172


KPA KPI BACKLOG

Water: 20 2636

600 (functional analysis)

Housing: 112 000

The Electricity Department would electrify houses

delivered by the Housing Department in terms of the

housing backlog.

Other than the housing backlog there was no backlog,

excluding figures in the Eskom supply areas.

6. Formalising township (Housing Department) = township that was pegged and ready for the installation of services – thus a township where stands could be identified.7. The water backlog was estimated at 28 869 per reviewed IDP 2006-2011 but was estimated at 20 263 as per information provided by the Department of Public Works

and Infrastructure for the analysis of backlogs (see Chapter 2 of this report).8. It was decided (see five-year programme: detailed city plan) that 112 000 (82%) of 136 000 top structures would be electrified.9. Figure provided by the City of Tshwane Electricity Department in the fourth quarter report.

173


TARGET

ACHIEVED 2006/07


(KPI)/measure)

COMMENTS ON

VARIANCE

Basic water for all by 2008

Upgrade the 20 263 households with a water service

below basic level to at least a basic level before

December 2008.

Provide services to the houses as they are built by the

Housing Department.

11 430

(1 430 = Water

and Sanitation

Department)

(10 000 = Hous-

ing Department)

20 198 water connections

Households with access to basic level or higher level

water:

Tshwane report card survey (HSRC, 2006) indicated 89%

of households had access to piped water.

Water Department functional analysis: 396,419 residents

had access to piped water inside dwelling.

109 206 had access to piped water from a tap < 200 m

from dwelling.

82% of residents had access = 505 625 households.

Planning (land-use) process to

be finalised

The network pipelines together

with the house connections were

installed but not connected due

to the process of identifying the

beneficiaries who would occupy

the relevant stands (1 816) once

the area was formalised.

(Majaneng/Morokolong/Greater

Temba)

The difference between the

HSRC figure and the lower figure

might be attributed to residents

with access to piped water but

within a distance > 200 m from

the dwelling.

Electricity equals the housing backlog (112 000)7

(excluding figures in the Eskom supply areas).

6 000

6 941 in Win-

terveld

11 131

13 110 in Winterveld

47 964 Eskom consumers8 and 445 0539 Tshwane

households = 493 027. This forms 79,5% of the total of

620 210 households with access to electricity.

The HSRC Tshwane citizens’ report card survey done in

2006 reported 82% access.

Note: The annual report of

2005/06 indicated an estimated

backlog of 8 746 connections

(p 204).

The target was exceeded due to

additional connections provided

in Eskom areas.


Chapter 4

174


KPA KPI BACKLOG

Sanitation: 38 76010

Housing: 112 000

An estimated 402 km of Class 4 roads (bus routes)

which were gravel roads at the time.

An estimated 2 357 km of Class 5 roads (internal

roads) which were gravel roads12 at the time.

146 664 households in informal settlements minus

44 16214 households provided with skips and refuse

removal by plastic bags = 102 502.

10. 420 812 City of Tshwane households with electricity as per City of Tshwane annual report 2005/06 (p 16) plus 11 131 plus 13 110 (achievement in the year under review).

11. Previously estimated at 96 426 (City of Tshwane reviewed IDP 2006-2011), later estimated at 38 760. Figure provided by the Department of Public Works and Infrastructure for the analysis of backlogs (see Chapter 2 of this report).

12. HSRC, 2006: Tshwane citizens’ report card survey.13. Figures from a report that served before the Council on 25 January 2007: Defining service levels.14. Note: The estimated cost of backlogs on roads was R6 200 million and on stormwater R1 200 million.15. City of Tshwane annual report 2005/06, p 187.16. HSRC, 2006: Tshwane citizens’ report card survey.

175


TARGET

ACHIEVED 2006/07


(KPI)/measure)

COMMENTS ON

VARIANCE

Contribute towards the national target of universal

basic sanitation by 2010.

12 963 (Hous-

ing Department

as well as

Water and Sani-

tation)

20 849 sewer connections

Households with access to basic level or higher level

sanitation:

Flush toilets: 72%

VIP toilets: 23%

95% with access11

Reduce the current backlogs of roads by 14% by 2011,

25% by 2016 and 60% by 2020.13

14% (= 327,6 km) by 2011

Upgrade and

construct:

41,7 km of

road; and

25,7 km of

stormwater

40,46 km of road

There was a total of 7 863 km of road in Tshwane of

which 5 536 was tarred.

39,7 km of stormwater

All work on roads planned in

Block HH in Soshanguve did not

materialise, due to lack of capac-

ity of the contractor.

The stormwater target was

exceeded because of fund real-

location during project execution.

Provide general access to solid waste removal by

2011.

10 000 7 500

84,6% of households with access to basic level or higher

level waste removal services

90% households in formal areas had access to full (kerb-

side) waste removal.15

36% households in informal areas had weekly refuse

removal.16

Awaiting final resolution from the

Council regarding 85/240 -litre

containers


Chapter 4

176


17. HSRC, 2006: Tshwane citizens’ report card survey.18. A decision was taken at the end of the second quarter of the 2006/07 financial year to focus on the eradication of backlogs (see second quarter organisational

performance report, Annexure A 1.2.2) rather than providing infrastructure for growth, due to resource constraints. This decision specifically related to housing but would impact on water and sanitation, electricity and the other infrastructure departments.

KPA KPI BACKLOG

Provide quality infrastructure for growth. Provision of infrastructure per type proportionate to

new demand/need (growth)







177


TARGET

ACHIEVED 2006/07


(KPI)/measure)

COMMENTS ON

VARIANCE

Provide infrastructure that meets growth demands and

prevents the creation of new backlogs.17

Targets set per

function

The infrastructure prioritised to deliver services

demanded in the city:

Electricity

Housing top structures

Waste service points

Parks

Water

Roads

Stormwater drainage

Sewerage

Provide 11 131 new electricity infrastructure develop-

ments per projected annual growth.

2 132 Electricity

6 305 infrastructure developments were added to the

network.

3 839 of these were provided by private developers.

Additional funding was made

available and private developers

provided additional develop-

ments.

Provide 10 000 top structures per annum per projected

annual growth.

10 000 Housing

Could not be achieved due to resource constraints. Focus

was on eradication of backlogs first as approved in the

second quarter report of 25 January 2007.

Top 20 projects would not provide any additional funding.

The intention of the Premier was clarified –- projects of

the current IDPs should be identified and reported (in the

three major townships – Atteridgeville, Soshanguve and

Mamelodi).

Due to funding limitations only

the eradication of the backlog

was being dealt with – external

funding was determined by the

province.

Provincial delivery was much

lower than projected due to

outstanding registration by the

province, with NHBRC to act as

developer.

Provincial delivery was included

in the achieved target under

backlogs above.

Provide 112 294 new waste service points.18 16 000 Waste service

Total of 13 078 new service points were provided, exclud-

ing 85l containers.

Provide 1 000 km of water pipes for growth 100 km Water infrastructure

Water: 110,7 km bulk water and water network pipes

were provided.

Provide 70 km of new road for growth. 13,5 km Roads

37,5 km of road for growth

Township developers completed

more work than expected due to

the boom in the economy.


Chapter 4


19. Baseline was 715 356 service points with approximately 3% annual growth.

KPA KPI BACKLOG

Ensure maintenance of existing infrastructure. Percentage expenditure on infrastructure

maintenance (R)

Ensure optimal resource utilisation. Percentage water and electricity unaccounted for

Ensure optimal resource utilisation.

Optimise labour intensity and community involvement. No of service delivery initiatives with local labour

content proportionate to the total

179


TARGET

ACHIEVED 2006/07


(KPI)/measure)

COMMENTS ON

VARIANCE

Provide 28 km of new stormwater drainage. 3,2 km Stormwater drainage

34,48 km of stormwater drainage for growth provided

Township developers completed

more work than expected due to

the boom in the economy.

Provide 1 500 km of sewer pipes to cater for growth. 45 km Sewer infrastructure

Sanitation: 31,08 km bulk sewer and sewer network pipes

provided

The 2006/07 budget was

depleted.

Ensure expenditure on infrastructure maintenance is

in line with national norms and standards by 2011.

13,2% Repairs and maintenance to total operating income

9,13%19

R725 763 000

Housing:

Funding constraints only allowed

for day-to-day maintenance.

Percentage water and electricity losses unaccounted

for must be in line with internationally accepted

benchmarks by 2011.

Water

The annual

programme

target was:

“Reduce water

unaccounted

for from 26%

to 23% (3%

reduction per

year).”

27,8% The annual percentage reduction

in UAW was changed to 1% until

such time that the billing informa-

tion on SAP was stabilised, as

resolved per special report to the

CM, dated 20/04/2007.

Baseline, however, was 26% and

became 29,8% on a recalcula-

tion.

Electricity

9%

8,36% The figure for losses depended

on the billing and purchases

figure. If the billing figure was not

accurate, the losses figure would

not be reliable.

By 2011 all labour-intensive initiatives of the City of

Tshwane must have 90% local labour.

OMM All infrastructure departments achieved 100%.


8 of the 10 capital projects initiated at Wonderboom

Airport were completed with a large contingent (50% to

80%) of local labour.


Chapter 4


KPA KPI BACKLOG

Leverage growing and strategic sectors in the City of

Tshwane to optimise investment opportunities and fo-

cus on establishing an integrated economy.

The number of City of Tshwane LED initiatives (includ-

ing capital projects) that focused on strategic and grow-

ing sectors proportionate to the total

Percentage growth in the City of Tshwane’s GVA21

Decrease in the Gini coefficient

20. Information as per Finance Department report on the provisional financial statements dated 27 July 2007.21. Presentation by the SEO: Economic Development, Dr Wiese, at an economic development planning lekgotla during February 200722. Cities’ Network 2004 (p 180) – Tshwane’s % GVA (gross value-added) growth in 2002 was 5%, but its contribution to national GVA for 2002 was 10%. These were

two separate measures.23. GVA = GDP minus taxes on products plus subsidies on products. Therefore GVA = (C+I+G+(X-M)) – Tc+ TPc. 24. Information provided by the Economic Development Department for the fourth quarter report.25. A coefficient close to 1 indicates greater inequality.26. The closer the Gini coefficient to 1, the more unequal the income distribution.


TARGET

ACHIEVED 2006/07


(KPI)/measure)

COMMENTS ON

VARIANCE

All City of Tshwane local economic initiatives should

focus on the growth of strategic sectors with the help of

strategic partners by 2008.

The sectors where the City of Tshwane can influence

growth directly are:20

Knowledge-intensive industries

Information and communications technology

Biotechnology

Electronics

Advanced materials manufacturing

Defence spin-off technologies

Aerospace clustering

Automotive clustering

Logistical clustering

Urban agriculture

Tourism

Second economy

Baseline to be

established

1. Knowledge-intensive industries

Smart City Initiative with the Office of the Executive Mayor

and the Electricity and City Planning Departments and

IMD

2. Information and communications

ICT sector with IMD and City Planning Department

3. Biotechnology

Biotech sector with Agriculture Department

4. Automotive cluster

Auto sector with Infrastructure and Public Works and City

Planning Departments

5. Aerospace cluster

The entire Wonderboom Airport capital budget was ear-

marked to promote growth of the aerospace cluster.

Over and above the initiatives mentioned above, the

Economic Development Department had 12 approved

capital projects, focusing on urban agriculture (7), the sec-

ond economy (2) and tourism (2). Therefore 11 out of 12

projects focused on growing and/or strategic sectors.

6% growth of GVA22 per annum 6% The GVA per capita for the City of Tshwane in 2006 was

R48 399.

It achieved 7,8% GVA growth for the period 2006-2007 ac-

cording to Global Insight23 (based on information provided

by Stats SA and other economic data).

Gauteng achieved 6,1% and

SA 4,9%.

Decrease Gini coefficient24 by 0,1 per annum (baseline

(0,75) (2001).

The household Gini coefficient 25(PDG method) as used

by the SACN was 0,72 for Tshwane in 2005.

Other methods in use, eg Global Insight, showed a Gini

of about 0,64 for South Africa in general and 0,59 for

Gauteng (for individuals).

Reduce by 0,1 The household Gini coefficient was

0,5726 for Tshwane in 2006.

The Gini coefficient for South Africa for the same period

was 0,64.

This means that Tshwane achieved greater equality be-

tween the highest paid and lowest paid individuals, than

the country as a whole.


Chapter 4


KPA KPI BACKLOG

Increase participation and broaden the contribution in

growing the city’s economy through the development of

SMMEs, cooperatives, the informal sector and the role

of black people, women and youth.

Support and develop SMMEs and/or cooperatives that

empower black people, women and the youth.

Establish strategic partnerships to ensure a focused

common vision and good value system for economic

governance.

Rand value of investment in Tshwane as a direct result

of strategic partnerships

Percentage of business in Tshwane that indicates that

the City of Tshwane’s efforts to create an enabling

business environment have improved over the past

year

Implement job creation initiatives.

The number of jobs created through a municipality’s

initiatives (local economic development), including

capital projects (NKPI)

Intercept the cycle of poverty by investing in human

resource development programmes that optimise the

wellness and potential of people from birth.

Departmental level KPA

27. Global Insight information provided by the Economic Development Department for the fourth quarter report.28. Marketing Surveys and Statistical Analysis (MSSA), 2007; Tshwane business satisfaction survey.29. Global Insight information provided by the Economic Development Department for the 4th quarter report.


TARGET

ACHIEVED 2006/07


(KPI)/measure)

COMMENTS ON

VARIANCE

At least 8 000 SMMEs and/or cooperatives by 2011, of

which 75% are to be owned by black people, women

or the youth

Electricity: 10

E c o n o m i c

Development:

1 500

20 were supported by the Electricity Department.

3 091 were supported by the Economic Development

Department.

In order to achieve the five-year

target, 1 600 SMMEs must be

developed a year.

The baseline for current rand value should be deter-

mined in 2006 and then a target should be set.

R100 million A total of R106 million was invested.

80% of businesses are to indicate satisfaction with the

City of Tshwane’s efforts to create an enabling busi-

ness environment by 2009.

Baseline to be

established

45% of businesses surveyed rated the City of Tshwane’s

efforts as “average” to “very good” in creating an enabling

environment for business development. 27

62% of formal businesses

28% of informal businesses

Results of the survey indicated

that the Municipality was not

meeting the needs of the smaller

businesses. A strategy had to

be developed to address these

perceptions.

Create at least 5 000 permanent jobs per annum

through initiatives (LED) with strategic partners, includ-

ing capital projects.

5 000 100 - LED A total of 61 319 jobs were

created in Tshwane’s economic

environment.28

Create at least 53 000 short-term jobs29 through initia-

tives (LED), including capital projects (NKPI).

10 600 3 663 – LED

100 – Transport

143 – Agricultural Tading

1 730 – Water and Sanitation

832 – Roads and Stormwater

802 – Electricity

Total: 7 270

The Stats SA general household survey for 2006

states that out of an estimated 626 011 households an

estimated 318 054 had expenditure levels of less than

R1 200 per month, ie 50,8% of households in the city.

There was no city-level indicator

for the KPA – therefore it was

impossible to report progress on

the interception of poverty.


Chapter 4


KPA KPI BACKLOG

Reduce the burden of poverty through an effective

indigent policy that enhances access for all those who

qualify, and link indigent families to targeted poverty

alleviation programmes that will improve household

income.

Percentage of households earning less than R1 70030

per month with access to free basic services (NKPI)

30. Number of short-term jobs created in the execution of projects (City of Tshwane standard is 1 job = 240 person days).31. Approximately twice the pension amount per month, and would change as pensions changed.


TARGET

ACHIEVED 2006/07


(KPI)/measure)

COMMENTS ON

VARIANCE

100% of households earning less than R1 100 per

month must have access to free basic services (NKPI).

100% In the financial year 2006/07 a policy was in place that

ensured free basic services (water, sanitation and elec-

tricity) to all households in formal areas.

Social Development reported

that all indigent31households

(46 800) received free basic

services.

100% must receive free electricity. 100% in the

Tshwane supply

area

100% in the Tshwane supply area

31 611 of 42 337 (77%) in Eskom supply areas

100% must receive free waste removal services. Establish a

baseline.

90 000 households had access to free basic services. 90

skips were placed and emptied in informal areas each

month.

Of the 90 000 households, 39 609 received free plastic

bags.

24,75%

100% must receive free basic water. 100% in formal

areas

100% of formalised households received free basic water.

391 227 households received free basic water (detailed

departmental analysis).

100% of informal settlements received water via JOJO

tankers.

100% must receive free basic sanitation. 100% in formal

areas

100% in formal areas


Chapter 4


KPA KPI BACKLOG

Promote viable communities by establishing mixed

human settlements closer to economic opportuni-

ties with social, cultural and economic development

programmes that enable celebration of diversity and

foster social inclusion.

Percentage of settlements close to economic op-

portunities

Decrease the vulnerability of targeted groups at risk

through mainstream programmes for children, the

youth, women, the disabled and the elderly.

Percentage increase in the Tshwane CDI (standard of

living) as measured by the SACN

Promote a culture of competitive and professional

sports activities and prepare the city to host the Africa

and World Soccer Cups in 2009 and 2010 respectively.

No of world-class sports events taking place in

Tshwane

Ensure the safety of our communities, businesses and

roads through fostering a culture of respect for the

rights of all.

Percentage of residents in Tshwane that indicate that

the Municipality’s efforts to promote a safe environ-

ment by enforcing laws have improved over the past

year

32. Social package policy: For instance, if the total gross monthly income of all the members of the household does not exceed the joint pensions of two old-age state pensioners.

33. The benchmark was Cape Town with a CDI of 73,2. The standard of living of the people was better the closer the figure was to 100.34. The 2006 SACN report used the Human Development Index (HDI). The HDI is a composite index of economic and social well-being, based on life expectancy,

educational attainment and a decent standard of living. An HDI value of between 1 and 0,8 is regarded as high, between 0,799 and 0,5 as medium and between 0,499 and 0 as low.

35. Information provided by the Economic Development Department.


TARGET

ACHIEVED 2006/07


(KPI)/measure)

COMMENTS ON

VARIANCE

70% of settlements close to economic opportunities,

either through being located there or by having op-

portunities developed in the area

A total of 27 applications for developments close to

economic opportunities were approved.

80% of these applications were within 5 km of economic

opportunities.

In order to increase the measur-

ability of this indicator the follow-

ing standards were used:

“Close” was defined as within a

5 km radius.

“Economic opportunity” was

identified as economic nodes

and corridors as per the

Tshwane Spatial Development

Strategy.

The indicator was to be changed

to:

Number of new settlements

developed/townships established

within a 5 km radius of economic

opportunities (nodes and cor-

ridors identified in the Tshwane

Spatial Development Strategy).

Raise the current Tshwane CDI from 62,0 to 64,0.32 Establish a

baseline.

HDI33 of 0,71 reported by Global Insight34 for the period

under review

The City of Tshwane fall in the

above average category of

higher than 0,69.

In view of the SACN change,

this indicator had to be reviewed

and adjusted to the Human

Development Index (HDI) used

internationally.

Ten world-class sports events by 2011 (ie two a year) 2 Six events were held.

95% of residents surveyed by 2009 indicating that the

Municipality’s efforts to promote a safe environment by

enforcing laws have improved over the past year.

Baseline to be

established

The residents and businesses satisfaction survey

(2006)35 indicated that 57% of business managers/own-

ers and one-third of households reported seeing a metro

police officer in their area at least once a day, while a

further quarter saw an officer at least once a week. One

in five households (20%) indicated that they never saw an

officer in their area.


Chapter 4


KPA KPI BACKLOG

Promote a clean, healthy and sustainable environ-

ment and reduce the burden of preventable diseases

(chronic illnesses, TB, HIV and Aids) on the people

and the economy.

Percentage of the uninsured population who have

access to municipal health services (or availability of

clinics, health care practitioners and essential drugs)

Ensure that the city has a disaster prevention and

management plan as well as optimal capacity to

respond to emergencies.

The preparedness of the City of Tshwane to prevent

and manage a disaster or emergency as reflected in

interdepartmental cooperation structures; availability

of people, procedures, equipment and information per

type of emergency and disaster

36. City of Tshwane Customer Care Division 2006.


TARGET

ACHIEVED 2006/07


(KPI)/measure)

COMMENTS ON

VARIANCE

100% of the uninsured population must have access to

municipal health services.

98% 98% of households had access to primary health care

within a radius of 5 km.

This indicator measured “munici-

pal health services”, not primary

health care – the report also in-

cluded access to primary health

care via provincial clinics, health

care practitioners and essential

drugs provided. Therefore it did

not reflect only the Municipality’s

achievement.

The City of Tshwane must be prepared for 70% of pos-

sible disasters in line with the disaster management

plan, and 90% prepared for emergencies in terms of

the emergency management plan.

Baseline to be

established

Disaster Man-

agement:

90%

The Department achieved a score of 129%, which means

that it over-achieved against its targets for the financial

year against the index for preparedness for emergencies

and disasters.

This KPI represented an index36

consisting of a number of indica-

tors that are weighted and then

calculated.

A policy document for disaster

risk management (Disaster

Risk Management Framework

for Tshwane) was developed

and submitted to the Mayoral

Committee for approval and

permission to commence with

the establishment of interdepart-

mental planning clusters for the

development of generic and risk-

specific contingency plans.

A macro disaster risk as-

sessment for the Tshwane

geographical area was done,

resulting in the identification of

ten priority risks for Tshwane.

The results were included in the

Disaster Risk Management Plan

for Tshwane.


Chapter 4

190


KPA KPI BACKLOG

Optimise effective community participation in the

ward committee system by strengthening the capacity

and effectiveness of the ward committees to support

the ward councillors’ capacity to engage in sectoral

activities.

Number of initiatives implemented to strengthen ward

committees

Strengthen ward committees’ capacity to engage in

sectoral activities linked to the national, provincial and

citywide programmes through, among others, the sup-

port and involvement of the community development

worker (CDW) programme.

Percentage of ward committees functioning actively,

performing the functions of ward committees in the

system of participatory democracy

Entrench a customer-focused approach to residents

and businesses by setting standards guided by the

Batho Pele principles.

Degree of compliance of City of Tshwane service

delivery with Batho Pele norms and standards

Good governance Percentage of Tshwane’s residents who indicate that

the City of Tshwane governs well

Sustainability management Percentage of municipal debt over 90 days

37. This index comprises the indicators on the departmental scorecard for the 2005/06 financial year and includes, for instance, response to fire incidents.

191


TARGET

ACHIEVED 2006/07


(KPI)/measure)

COMMENTS ON

VARIANCE

The number of initiatives implemented must be in line

with the needs identified.

One induction

session,

two training

sessions, one

conference

One induction programme,

two Housing consumer education workshops for council-

lors and ward committees

100% of ward committees should fulfil their functions. 100% Seven out of 76 wards were not fully functional.

92,8% of ward committees functioned actively.

All areas of service delivery are to comply by 2010. Standardise

procedures

by developing

norms and

standards.

A norms and standards document was submitted for

approval by the Customer Care Division.

The report of the Office of the City Manager (setting

customer care service standards) was approved by the

City Manager on 22 May 2007.

It was not clear if this applied

only to the Customer Care

Relations Management Section

or to all other sections in the

Municipality, hence the delay.

Training for all departments

on how to set and implement

norms and standards was to be

done in consultation with the

Municipality’s training facility.

95% of Tshwane residents surveyed should indicate

that the City of Tshwane governs well.

Establish a

baseline.

The Tshwane residents and businesses satisfaction

survey of May 200737 indicated the following:

Less than half (46%) of the total sample (n = 1 200)

felt that the City of Tshwane was doing a good job in

delivering the service needed.

8% of business respondents and 4% of households

claimed to have been offered a bribe from a city official

in the past 12 months. This statistic may be regarded as

high, depending on the weighting of the severity of the

bribe.

There was no significant differ-

ence between the household and

business segment respond-

ents on the perception of the

Municipality doing a good job.

Reduce municipal debt over 90 days from 78% to 68%

by 2011.

76% 75%


Chapter 4

192


KPA KPI BACKLOG

Efficiency gains in rand value due to the implementa-

tion of alternative service delivery mechanisms

Remuneration as a percentage of the total operating

budget

Prudent financial management Financial viability as expressed by:

A=(B-C)/D38

Financial viability as expressed by:

A=B/C40(NKPI)

Prudent financial management Financial viability as expressed by:

A=(B+C)/D41 (NKPI)

Percentage of the Municipality’s capital budget actually

spent on capital projects identified for a particular

financial year as per the IDP (NKPI)

38. City of Tshwane: Customer Care Division, 2007 (research report for the City of Tshwane Metropolitan Municipality, June 2007, p98).39. A = debt coverage, B = total operating revenue received, C = operating grants, D = debt service payments due within the financial year.40. Financial viability figures for the NKPI taken from the Finance Department’s second provisional report to the Mayoral Committee.41. A = outstanding service debtors to revenue, B = total outstanding service debtors, C = annual revenue actually received for service.42. A = cost coverage, B = all available cash at a particular time, C = investments, D = monthly fixed operating expenditure.43. Finance Department’s second provisional report, 27 June 2007.

193


TARGET

ACHIEVED 2006/07


(KPI)/measure)

COMMENTS ON

VARIANCE

A comparison of expenditure prior to and after imple-

mentation of alternative service delivery mechanisms

should show savings by 2011.

Cost of organi-

sational struc-

ture as on 1

July 2006 to be

maintained or

reduced (taking

the municipal

cost index into

account).

Cost of

remuneration

for financial

year 2005/06

to equal

R2 369 366 000

(12 979

positions to be

filled).

Average salary

per employee to

equal

R182 553,81

pa.

Cost of remuneration for financial year 2006/07 = R2 412

004 371 (12 331 positions were filled). Average salary per

employee = R196 604,92 pa.

Increased total employee cost

only 1,8% for the year despite an

agreement with Salga and the

unions to increase salaries. This

was an excellent achievement in

managing remuneration costs.

In line with the restructuring grant targets (ie 28%) 32,6% 27,97%

Financial viability is to be achieved in terms of the

restructuring grant targets.

Debt coverage

of 8,2

839

Outstanding

service debtors

to revenue of

20%

23,7%

Cost coverage

of 1,0

Cost coverage of 0,9

The percentage of budget spent must be in line with

the restructuring grant conditions, with 99% achieved

by 2009.

95% 85,9%42


Chapter 4

194


KPA KPI BACKLOG

Local government responsiveness to residents Percentage of residents surveyed who indicates

satisfaction with the City of Tshwane’s responsiveness

Monitor and evaluate performance. The degree to which City of Tshwane programmes,

projects and initiatives respond to the needs and priori-

ties of its communities

Ensure cooperative governance (IGR). The degree of integration between the City of Tshwane

and other spheres of government in the delivery of

critical programmes or initiatives

Perform risk management. The degree to which the City of Tshwane’s risk man-

agement practices reflect international best practice,

norms and standards

195


TARGET

ACHIEVED 2006/07


(KPI)/measure)

COMMENTS ON

VARIANCE

80% of residents surveyed should indicate they are

satisfied with the City of Tshwane’s responsiveness.

Establish

baseline.

Respondents to the Tshwane residents and businesses

satisfaction survey 2006 rated the Municipality’s respon-

siveness43 at 49,8%.

22% of respondents in the above survey lodged com-

plaints during the previous 12 months, of which 79% felt

that their complaints were not dealt with satisfactorily.

Improve service delivery so that all programmes,

projects and initiatives make a positive impact on the

communities in terms of their identified needs and

priorities.

All pro-

grammes,

projects and

initiatives must

be planned

for develop-

mental impact

(incorporates

developmental

targets; for

instance to

increase the

percentage of

local vendors

used by the

Municipality

to support job

creation in the

local (Tshwane)

area.

A baseline is to

be established

Legal and Secretarial Services: 76%

Electricity: 62%

Social Development: 100%

Sport, Recreation, Arts and Culture: 100%

Water and Sanitation: 85,9%

Emergency Management Services: 37,65%

Tshwane Metro Police: 100%

Corporate Services: 70%

Local Economic Development: 85%

Tourism: 94%

Agricultural Trading: 90%

“Impact” was understood to be

the difference between the out-

come of a sample exposed to

the Municipality’s activities and

the outcome that would have oc-

curred without the intervention.

The Municipality was not able

to assess the impact of using

local vendors on its employment

levels, but did measure an as-

sumed input.

Achieve full integration of the delivery of critical

programmes by 2011.

Integrate critical

programmes

in the City of

Tshwane’s

planning.

All critical national programmes were considered in the

planning for the 2006/07 Medium-term Revenue and

Expenditure Framework.

See the development of detailed

departmental business plans

as described in the 2006-2011

reviewed IDP (Chapters 3 and 4

of the IDP).

Bring a City of Tshwane risk management practice to

be in line with international best practices and norms

and standards by end 2007/08.

100% of risk

management

practices as per

Strategic Risk

Register must

be imple-

mented.

The target was not achieved by all departments.

Proof of achieving action plans was submitted only by

Economic Development (82%), Emergency Management

(100%), Electricity (100%), Finance (87%), Corporate

Services (56%), Governance (71%), Metro Police (80%),

Water and Sanitation (83%), Social Development (95%),

Housing (100%) and Roads and Stormwater.

.


Chapter 4

196


KPA KPI BACKLOG

Ensure sound human resources management. Percentage of human resource practices that reflect

best practice and compliance with legislation

Implement e-governance. Degree of response of ICT to organisational service

delivery needs

Establish a public accounts committee. Time frame for the establishment of a public accounts

committee

197


TARGET

ACHIEVED 2006/07


(KPI)/measure)

COMMENTS ON

VARIANCE

75% of all City of Tshwane human resource practices

are to be in line with international best practices, norms

and standards, and to comply 100% with legislation.

This KPI represented an index, which consisted of a

number of indicators that are weighted and then calcu-

lated. Compliance with the following pieces of legislation

was monitored by Corporate Services:

Basic Conditions of Service Act – 100%

Labour Relations Act – 100%

Skills Development Act – 100%

Occupational Health and Safety Act – 90%

Employment Equity Act – 80%

Human resource practices were not formally bench-

marked against best practice. This exercise would be

undertaken in 2007/08.

Ensure integrated systems that support service deliv-

ery and instil accountability by 2008.

Engage with

role-players to

ensure system

integration for

development

process.

This KPI required an evaluation of support to the organi-

sational service delivery needs.

The design of an integrated database (SAP, GIS and

IBIS) was in progress.

Various interfaces were developed to enhance integration

with other systems.

The following integration was done:

1. Interface between SAP and the valuation system

2. Interface between GIS, LIS and SAP

3. Interface management tool implemented to facilitate

interface files between SAP and external systems

4. SAP asset management integrated with the inventory

control system

5. Interfaces between IBIS and SAP

6. Electronic payment interfacing between Standard Bank

and SAP

7. Enhanced interfacing between Cashbook, Cashiers

and SAP

Finalise the

establishment

of the public

accounts com-

mittee.

The committee was established and approved by the

Council.


Chapter 4


KPA KPI BACKLOG

Customer relations management Percentage of residents surveyed who indicate satis-

faction with the City of Tshwane’s responsiveness

Skills audit: Recruitment, retention and succession

planning

Percentage of rare and essential skills retained per

job category

Ensure employment equity.

Number of people from employment equity target

groups employed per organisational level in compli-

ance with the Municipality’s EE plan (a national KPI)

Human resource development plan

Percentage of the Municipality’s budget spent on

implementing its workplace skills plan (a national KPI)

199


TARGET

ACHIEVED 2006/07


(KPI)/measure)

COMMENTS ON

VARIANCE

80% of customers surveyed annually must indicate

that they are satisfied with the City of Tshwane’s

responsiveness.

The Tshwane residents and businesses satisfaction

survey of 2006 yielded responses of “always true” or

“true most of the time” for the following aspects of service

delivery in the city:

Consultation: 28%

Service standards: 18%

Access: 41%

Courtesy: 36%

Information: 31%

Openness and transparency: 24%

Redress: 19%

Value for money: 26%

Also see the KPA above “Local

government responsiveness

to residents”, where the same

indicator was used.

It was recommended that the two

KPAs be merged for the 2007/08

financial year report.

Ensure that 70% of rare and essential skills per job

category are retained by 2011.

A thorough skills audit was to be done during the 2007/08

financial year to establish rare and essential skills reten-

tion strategies aligned to the ASD.

R6 million worth of bursaries was offered to employees

and non-employees.

Annually achieve the targets set out in the Municipal-

ity’s EE plan thereby achieving 100% of the EE plan

by 2011.

Improve EE

levels where

positions are

advertised

externally.

Levels 1 to 4:

African: 208 employees 38% (25,9% male) (12,% female)

Coloured: 18 employees 3,3% (2,6% male) (0,7% female)

Indian: 16 employees 2,9% (2% male) (0,9% female)

White: 306 employees 55,8% (40% male) (15,9% female)

Achieve national norms and standards by 2011 in

terms of the percentage of the budget to be spent on

implementing the workplace skills plan.

1% of the

remuneration

budget

The City of Tshwane was paying 1% of the remuneration

budget as levies to the SETA, which was estimated to be

R18 024 404.

Skills levies paid in 2006/07: R8 729 737,55 m

Grants claimed: R4 485 109,75 m

Training budget for 2006/07: R31 598 914 m

CHAPTER 5 FUN

CTI

ON

AL

SER

VIC

E D

ELIV

ERY

REP

ORT

BA

SED

ON

TH

E FU

NC

TIO

NA

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LASS

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N S

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M F

OR

GO

VER

NM

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FIN

AN

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STAT

ISTI

CS

5.1 General information

The City of Tshwane Metropolitan Municipality has been clas-

The Municipality was established on 5 December 2000 through

the integration of various municipalities and councils that had

The new municipality was formed through the amalgamation of

the following local authorities:

The Town Council of Centurion

5.1.1 Demography

5.1.1.1 Total population

Year Number Growth

%*2001 1 985 982 -

2002 2 029 670 2,2

2003 2 074 320 2,2

2004 2 119 960 2,2

2005 2 172 960 2,5

2006 2 227 284 2,5

*Stats SA (Census 2001)

Note: The Economic Development Department indicated that according

to the Global Insight study, the estimated population for 2005 would be

2 403 000.

5.1.1.2 Indigent population

the total gross monthly income of all the members of the

household does not exceed the joint pensions of two old-

the applicant as well as any other member of the house-

the improved municipal value of the property on which the

were registered as indigent.

Chapter 5

202

5.1 GENERAL INFORMATION


5.1.1.3 Total number of voters

5.1.1.4 Age breakdown

Age

Persons 2001 % 1996 %

0 to 4 155 757 7,8 153 381 9,2

5 to 14 331 106 16,7 297 471 17,9

15 to 34 806 811 40,6 660 365 39,7

35 to 64 603 816 30,4 473 503 28,5

65 and older 88 492 4,5 78 714 4,7

Total 1 985 982 100,0 1 663 434 100,0

5.1.1.5 Population groups

Persons 2001 % 1996 %

African 1 442 579 72,6 1 144 200 68,5

Coloured 38 720 1,9 29 613 1,8

Indian 30 130 1,5 24 716 1,5

White 474 553 23,9 471 258 28,2

Total 1 985 982 100,0 1 669 787 100,0

203

Chapter 5

204


5.1.1.6 Household income1

Monthly household income

No income 85 811

R1 – R400 20 356

R401 – R800 60 301

R801 – R1 600 84 747

R1 601 – R3 200 86 642

R3 201 – R6 400 76 033

R6 401 – R12 800 66 194

R12 801 – R25 600 50 099

R25 601 – R51 200 21 361

R51 201 – R102 400 5 494

R102 401 – R204 800 2 784

R204 801 – 1 951

Unspecified 35 748

TOTAL 597 520

General household survey 2006 (Stats SA)

Estimated expenditure of Tshwane households

R0 – R399 95 921

R400 – R799 126 212

R800 – R1 199 95 921

R1 200 – R1 799 80 776

R1 800 – R2 499 55 533

R2 500 – R4 999 65 630

R5 000 – R9 999 50 485

R10 000 or more 25 242

Don’t know 5 048

Refuse to provide information 0

Unspecified 25 242

Total 626 010

5.1 GENERAL INFORMATION

205

5.1.2 Geography

Figure 5: Provincial context Figure 6: Tshwane: Size and dimensions

PWV2N4

R21

N1

50km

CBD

65km

219 847 ha

N

Source: City of Tshwane Metropolitan Municipality

Chapter 5

206


UNIT OF FOCUS WHAT WAS COM-

PLETED

Number of

households with

access to at least

basic services

WHAT WAS BE-

ING ADDRESSED

Households with

access below

basic services

WHAT WAS

DEALT WITH AT

ALL, WHY, AND

WHAT WERE THE

FUTURE PLANS

WHAT WERE THE

FINANCIAL

IMPLICATIONS

AND WHERE

WAS ADDI-

TIONAL FUNDING

NEEDED

WHAT WERE

THE LEGAL

IMPLICATIONS

Water (access to potable

water, backlogs)

537 100 Water and sanitation:

20 263

Housing: 36 289

Total: 56 552

0 Water and sanitation

only:

Total required: R125 m

Shortfall: R13 m

National target of Dec

2008 might be missed if

funds were insufficient.

Sanitation (hygienic

sanitation) backlogs

455 500 Water and sanitation:

38 760

Housing: 136 394

Total: 175 154

0 Water and sanitation

only:


Shortfall: R115 m




Electricity ( access to

electricity) backlogs

493 017 Electricity: 7 500

Housing: 136 394

Total: 143 894

0 Electricity, funds

required: R490 m

Shortfall: R121,7 m



funds were insufficient.MIG ( status and

number of projects and

expenditure trends)

14 projects for the

financial year.

Total budget for

2007/08:

R79 200 000.

Water: 20 263

Housing: 36 289

Total: 56 552

Sanitation: 38 760

Housing: 136 394

Total: 175 154

0 Water only:


Shortfall: R13 m

Sanitation only:


Shortfall: R115 m







5.2 ISSUES FOR PROVINCIAL AUTHORITIES to report on

Chapter 5

207

5.3.1 Mayoral Committee and Council

Overview and description of key issues

The City of Tshwane is a municipality with a mayoral executive

system combined with a ward participatory system in accordance

whom 76 were ward councillors and 76 proportionally elected

opposition.

charged with executing the mandate to uplift the socio-economic

conditions of residents.

i) Effective community participation

councillors and ward committees in their respective zones. The

2006.

The number of ward committee meetings held for the period un-

understanding of how the different wards fared:

WARDS NUMBER OF MEETINGS

74 16 meetings12/ 31/ 48/ 61/ 63/ 68/ 71 11 meetings each43/ 62/ 66/ 70 10 meetings each8/ 13/ 27/ 32/ 40/ 42/ 51/ 53/ 57/ 64/

65/ 72/ 75/ 76

9 meetings each

6/ 7/ 14/ 19/ 22/ 28/ 46/ 47/ 56/ 73 8 meetings each1/ 9/ 20/ 30/ 38/ 41/ 44/ 54/ 60/ 69 7 meetings each35 6 meetings3/ 21/ 23/ 25/ 34/ 52/ 59/ 67 5 meetings each10/ 11/ 26/ 33/ 36/ 45 4 meetings each15/ 16/ 17/ 18/ 37 3 meetings each24/ 29/ 58 2 meetings each2/ 4/ 5/ 39/ 49/ 50/ 55 No meetings

lowing were programmes that were arranged in the year under

review:

Bontle ke Botho

cused on community participation in the following issues:

Distribution of cleaning and washing material

World Aids Day for 2006

5.3 FUNCTIONAL ANALYSIS PER GOVERNMENT FINANCE STATISTICS (GFS) CLASSIFICATION

Chapter 5


Imbizos

The mayoral imbizos provide a platform for engagement with

The objectives of the imbizos are -

to provide a platform for face-to-face interaction with the

oral Committee to the living conditions of Tshwane resi-

to provide a platform for members of the community and

tunity to interrogate leaders on the City of Tshwane’s pro-

to create a platform for the Municipality to showcase its

to strengthen the ward councillors and ward committees in

the respective wards through the encouragement of public

participation in municipal affairs.

2007:

community in Ward 24.

16 August 2006: Temba

Cooperatives summit

Drug by-law consultation

Launch of quality health care campaign

209

ii) Local government’s responsiveness to residents

NO DATE

RECEIVED

DATE

CONSIDERED

SUBMITTED BY SUBJECT OF PETITION

RECEIVED/REPORT CONSIDERED

169 12/07/2006 Clr P Gohl Deterioration of the municipal bus service

209 08/11/2006 Clr MGW Aucamp Objections against the taxi rank in De Villebois Mareuil Drive,

Moreleta Park225 12/07/2006 Clr CJ Napier Public participation process during the 2005/06 budget and

IDP process226 12/07/2006 Clr P Gohl Public participation process during the 2005/06 budget and

IDP process228

12/07/2006

K Selelo Utilisation of a sports field in Unit 5, Temba

239 08/08/2006 Mr MB Lebopo Concerns of residents of Annlin Extension 36

254 12/09/2006 Clr DJ Erasmus Traffic-calming measures and pedestrian walkways in Karel

Trichardt and Dorp Streets, Suiderberg, Mountain View256 08/08/2006 Clr EF Landman Condition of the road reserve at the intersection of Station

Avenue with Botha and Unie Streets, Lyttelton258 08/08/2006 Clr JD Feldman Request for traffic control at the corner of Tiptol and Berghaan

Streets, Silverton Extension 5262 08/08/2006 Clr AW Campbell Proposed traffic calming in Bleshoender and Flamink Streets,

Silverton Extension 5264 08/11/2006 Clr PE Millar Crime prevention in Kilner Park

269 08/11/2006 Clr PML Mdhluli Concerns regarding the Central View Development Project

Steering Committee276 12/09/2006 Clr LM Modumaela Concerns of residents of Block PP, Boikhutsong, Orange Farm

272 12/07/2006 Mr A Moloi Request for Apollo lights in Block B, Mabopane

278 08/11/2006 Clr C Spoelstra Upgrading of the road system around Main Road, Irene

283 12/09/2006 Mr P Mabuza Provision of houses in Soshanguve South Extension 2

283 04/10/2006 Mr P Mabuza Provision of houses in Soshanguve South Extension 2

286 12/09/2006 Clr J Engelbrecht Request for the cutting of grass in Hendrik Avenue, Wierda

Park292 12/09/2006 Clr AW Campbell Agreement between the City of Tshwane and DRW Hood

regarding the construction of houses in Eersterust293 08/11/2006 Clr AW Campbell Management and allocation of graves in the Eersterust

Cemetery294 12/09/2006 Mr F Nkoana Concerns regarding houses in Soshanguve South Extension 3

294 04/10/2006 Mr F Nkoana Concerns regarding houses in Soshanguve South Extension 3

295 03/7/2006 Clr CJ Napier Objection against the development of Erf 393, Doringkloof

296 03/7/2006 Ms MM Twala Cleaning of streets in ward 7

Chapter 5

210


NO DATE

RECEIVED

DATE

CONSIDERED



297 03/07/2006 Clr M Essop Electrical power failure in Vrolikspruit Street, Erasmia

298 03/07/2006 Clr M Essop Fencing off of Eskom erf in Himalaya Street, Laudium

299 03/07/2006 Mr S Mapula Speeding problems in Dlangamantla Street, Mamelodi East

300 03/07/2006 Clr Ndoko Condition of roads in Block AA, Soshanguve

301 10/07/2006 Clr TM Ngwenya Safety concerns of the residents of Block DD, Soshanguve

302 10/07/2006 Clr TM Ngwenya Request for the tarring of roads in Block DD, Soshanguve

303 10/07/2006 Mr TP Mabima Objections against the allocation of accommodation in the

Saulsville Hostels

304 12/07/2006 Sanco Union Branch Request for speed-calming measures in Soshanguve Blocks P

and SS on Soutpan Road (K53)

305 31/07/2006 Clr D Baker Request for traffic-calming measures at the corner of Ashton

Street and Brompton Road, Lynnwood Manor

306 22/08/2006 Clr DP Theron Condition of Zita Park, Garsfontein

307 06/09/2006 ST Sithole Complaints against street parties held in Block U, Mabopane

308 06/09/2006 N Dlepuma Request from the Sediba Community Church for the allocation

of property in Philip Nel Park

309 06/09/2006 Clr DG van der Merwe Request for the removal of the taxi problem outside 52 Selati

Street, Alphen Park

310 06/09/2006 Clr K Meyer Concerns of residents regarding the open field on Petrick,

Mayo and Tipperary Roads, Faerie Glen

311 06/09/2006 Clr CJ Napier Request for the upgrading and improvement of the alley

between Kruger and DF Malan Avenues, alongside Trichard

Road, Kloofsig312 06/09/2006 Clr PJ Fourie Noise pollution from the LA Bush Restaurant, Myburg Street,

Capital Park

313 06/09/2006 Clr S Rens Request for the reallocation of Constable Hendricks from Metro

Police to Crime Prevention Unit

314 06/09/2006 Middle Village Community

Representative Council

Request for the confirmation of the demarcation of Midas

Square, Hebron

315 23/10/2006 Clr DC Baker Request for improvement of the parking area at Glenwood

Centre, Lynnwood Glen

316 23/10/2006 Clr SD Rens Illegal road over Erf 4468/9, Kudube Extension 4

317 23/10/2006 Clr E Linde Twister’s Pub, cnr 24th Avenue and Hertzog Street

211

NO DATE

RECEIVED

DATE

CONSIDERED



318 23/10/2006 Clr CJ Napier Security concerns at Fleur Park, Lyttelton Manor East

319 23/10/2006 Clr MGW Aucamp Traffic safety between Rigel turn-off and the R21 turn-off on

the N1

320 23/10/2006 Clr M Essop Conditions on Erf 2486, Laudium (608 Bengal Street)

321 23/10/2006 Clr M Essop Alienation of Erf 1320, Laudium

322 23/10/2006 Mr M van Niekerk Request for traffic-calming measures in Elsiesrivier and East-

side Streets, Eersterust Extension 6

323 13/12/2006 Mr LE Mathole Grievance regarding an eviction of a tenant of Flat A1901,

Schubart Street Flats

324 13/12/2006 Ms HM Kekae Request for municipal services in Blocks F4 and F2, New

Eersterust

325 13/12/2006 Mr W Maifadi Concerns about the building specifications of toilets in

Soshanguve Extension 38

326 13/12/2006 Mr P Sekoba Request for a new clinic in Majaneng

327 13/12/2006 Clr AW Campbell Request for the re-instatement of the Silverton 1 bus at 06:50

328 13/12/2006 Clr AW Campbell Complaints regarding the unsatisfactory bus service in

Eersterust

329 13/12/2006 Mr A Mathibe Business plan for Sechaba-Sizwe social housing

iii) Intercepting the cycle of poverty by investing in human resource development programmes that optimise the wellness and

potential of people from birth

of the following:

Development of policy and strategies

structure in Tshwane to develop it’s youth.

a child-friendly city.

Chapter 5

212


Mainstreaming

An interim youth advisory council was established and en-

recommendation of a model for the institutionalisation of

youth development.

mation to empower them

young people on labour-intensive construction

appointment of 50 young people who are on the youth

portunity to discuss a variety of issues with municipal poli-

ticians

children on visits to museums

Mabopane: door-to-door campaign in Mabopane to em-

ing and reenactment of the 1956 women’s anti-pass law th anniversary

of the march.

business sector

of Tshwane Multi-party Women’s Caucus as part of the

16 days of activism campaign

rica: a civil women’s organisation lobbying and champion-

ing women development and gender equity issues across

all spheres of society

C to expose young women at schools to opportunities in

the corporate world and role models for their future ca-

Training of 60 informal fresh-produce retailers and han-

Women cleaning services at the City of Tshwane Trans-

port public facilities

Planning and coordination

for children for approval by the Mayoral Committee and

Council

Monitoring and evaluation by setting performance targets

(indicators)

Reporting

Public support for targeted groups

Coordination of visits to schools as part of child safety

cial Dialogue

national campaign to stop abuse of women and children

213

iv.) Good governance

resolution and local government legislation. A compliance unit

adhered to.

members of the Mayoral Committee and the City Manager in

line with the approved system of delegations. Though this sys-

be done to restructure and provide resources to enable the

Council to perform its supervisory role optimally. To enhance

tee was established.

city’s strategic objectives. To that end this committee also re-

the annual report. The Audit Committee chair reported directly

to the Mayoral Committee.

formance evaluations.

As for a anti-fraud and anti-corruption mechanisms were con-

Our customer care services could be accessed free of charge

on the hotlines that were introduced the previous year in the

manner.

5.3.2 Finance and administration

5.3.2.1 Finance

a) Overview and description of key issues

budget and implementing and maintaining a control system to

position.

Details Number RDebt of less than R3 000 and older than 90 days written off 397 311,73Property rates (total): Number and value of rateable properties 472 740 20 701 235 272,36Value of residential properties 422 375 12 873 764 098,36Value of other properties 50 365 7 827 471 174,00Rates collectable for the 2006/07 financial year 1 668 006 954,00Regional Services Council levies: Number of registered levy payers 51 612Total establishment levy 61 747 985,23Total services levy 27 741 848,44Levies collected for the 2006/07 year 89 489 833,66Policy on the indigent:Quantum (number of households affected) 47 474Quantum (total value across Tshwane) 109 000 1 147 770,00

Basic social package quantum (total value across Tshwane) 50 000 000,00

Chapter 5

214


Debtor billings

Details Average number of debtors per

month

Value for the year

RWater 282 322 964 450 451,00Electricity 282 122 2 485 646 609,00Sanitation 274 633 231 831 720,00Waste 324 503 224 493 982,00Assessment rates 363 247 1 668 006 954,00

Total 1 526 827 5 574 429 716,00

Debt collection

Total levied Total collected % collection

5 574 429 716,00 5 479 664 410,82 98,3%

Analysis of debt

Current outstanding 30 days outstanding 60 days outstandingMore than 90 days

outstandingTotal outstanding

359 051 887,85 177 937 763,24 81 300 644,09 1 851 362 288,12 2 469 652 603,30

b) Key performance areas

Key

performance

area

Performance dur-

ing the year and

actual achieve-

ment against

targets

Actual

2003/04

Actual

2004/05

Actual

2005/06

Target

2006/07

Actual

2006/07

Target

2007/08

Sustainability man-

agement

Collection rate Average collection

rate of 98,4%

Average collection

rate of 98%

Average collection

rate of 98,6%

98% Average collection

rate of 98,3%

98%

Read 85% of meters 85,09%Percentage expected

versus actual accounts

billed

90% 98% 92%

Percentage of actual

meters read

85% 85,09 87%

Improve response

times to customer

enquiries

42 days 33 days 25 days

Percentage of munici-

pal debt over 90 days

76% 66% 65%

215

5.3.2.2 Human resources


lated to the management of human resources in the City of

legislation to ensure occupational health and safety of all em-

ployees.

i) Salary administration

section 57 employees.

-

the standardisation of conditions of service for bus -

drivers.

Changed employment contracts for metropolitan police

The division coordinated the submission of annual statements

by employees who participated in the homeowners’ allowance

scheme to ensure they adhered to policy rules and regulations.

Annual statements had to be submitted at the end of April 2007.

Transport allowances

The division received and approved applications according to

advised management on ad hoc tariff increases that had to

and therefore the goal of the subsection was to be as effec-

also assisted in grievances relating to transport allowances or

problems on the system were resolved when necessary.

Bursaries

were assisted with the administration of bursaries. This were a

continuous process. This subsection also assisted the Career

ries when required.

The objectives were to render service and give advice on ben-

the Municipality for overpayments and write-offs.

was put on hold after negotiations.

med agreed to pay only from 2005 since the other debt

had lapsed.

tration personnel visit the Municipality for an account dis-

a result of incorrect billing.

did not belong to a group life insurance scheme.

The division met with the Municipality’s group insurance

Chapter 5

216


A leave credit report or year-end report was submitted to

The audit query on the system’s implementation of leave

policy was attended to.

iii) Human resource development

ments and captured on the electronic learner management

indicating all the training needs that could be addressed by the

resources. A quality management system was in place to en-

sued to learners for achievements.

iv) Labour relations operations

A collective bargaining strategy was formulated for alter-

native service delivery.

The following collective agreements were concluded:

-

-

allowance

-

Training:

Training on disciplinary procedure was given to munici--

pal departments.

An induction document was compiled and presented to -

new employees.

A document on grievance procedure was compiled and -

presented to new employees.

v) Occupational safety

the assistance provided to the City Manager in accordance with

During the year under review the procedure for the reporting of

3 500 employees

provided to 10 062 employees

at the City of Tshwane

visits

documentation produced

requirements

co-opted members

46 occupational hygiene surveys performed

Assessed 29 stressors

vii) Employee wellness operations

The following statistics are available for the mentioned period:

217

b) Analysis of the function

Details 2005/06 2006/07

Number R Number R

Number and cost to employer of human resource staff

employed:

- Professional (managers/specialists)

- Field (supervisors/foremen)

- Office (clerks/administrative assistants)

- Non-professional (blue collar and outside workers)

25 12 526 496 25 13 744 812

0 0 0 0

220 17 372 095 215 18 872 337

14 980 725 17 1 252 436

c) Key performance areas

Departmental key

performance areas

Departmental

indicators

Five-year pro-

gramme targets

2006/07 annual

targets

Cumulative actual

performance in

year

Reasons for

performance/un-

der-performance

on planned target

Implementation of

Human Resources

Transformation Plan by

2009

Percentage imple-

mentation of Human

Resources Transforma-

tion Plan in line with

legislation and best

practice

100% implementation

of Human Resources

Transformation Plan by

2009

40% 50% Human Resources Stra-

tegic Framework and

Shared Service Delivery

Model approved by the

Portfolio Committee on

25 October 2007Employee grievance

management

Percentage decrease in

grievances

50% decrease in griev-

ances by 2011


ances


ances

Grievances about issues

relating to previous

restructuring have

tapered off.

Skills development Percentage of municipal

employees trained

on customer relations

management

60% of employees to

be trained in customer

relations management

by 2011

Percentage of municipal

employees trained

in customer relations

management

Human Resources

Department: total of 220

employees trained in

customer care during

2006/07Number of learners

completing learner-

ship programmes with

relevant SETAs

Average of 20 learners

per department to

complete learnership

programmes with rel-

evant SETAs by 2011

80 122

Number of employees

who have gone through

the recognition of prior

learning (RPL) process

At least 1 000 municipal

employees to go through

the RPL process

200 Policy is in place No directives from SETA

Chapter 5


Departmental key

performance areas

Departmental

indicators

Five-year pro-

gramme targets

2006/07 annual

targets

Cumulative actual

performance in

year

Reasons for

performance/un-

der-performance

on planned target

Percentage improve-

ment in organisational

skills capacity per an-

num

Improve organisational

skills capacity by at least

5% per annum.

5%

80% of 5 501

7 554 trained = 137% The indicator was

problematic, not clear or

measurable and difficult

to report on. To deter-

mine existing capacity

required drawing up

personal development

plans for all employees.

A relevant skills audit

and job profiles with

allocated competencies

needed to be com-

pleted to determine the

improvement of skills

capacity.

Steps required to

achieve this indicator:

Skills audit,

personal development

plans and

competency matrix for

all job levels

Proposed indicator:

Percentage implementa-

tion and compliance with

targets set in approved

City of Tshwane Skills

Development Plan -

measurement of

improvement in skills

capacity not possible.Implement alternative

service delivery options.

Time frame for comple-

tion of detailed organisa-

tional design

Detailed organisational

design to be complete

by December 2006

100% completion of

organisational design

up to level 5 by end of

December 2006

Consultants provided

the Council with propos-

als by end of November

2006. Approved in

principle by the Council.

The City Manager

established the ASD

project office to take the

process forward.

219

Departmental key

performance areas

Departmental

indicators

Five-year pro-

gramme targets

2006/07 annual

targets

Cumulative actual

performance in

year

Reasons for

performance/un-

der-performance

on planned target

Implement the new ASD

structure.

Time frame for

implementation of new

organisational structure

New structure should be

fully implemented within

a financial year.

Percentage implemen-

tation of organisation

structure up to level 3 by

end June

Consultants provided

the Council with propos-

als at end November

2006. Approved in

principle by the Council.

The City Manager

established an ASD

project office to take the

process forward.Implement an organisa-

tional change of culture

programme.

Aspects of culture

change achieved

Achieve a change in

culture that addresses

critical bottlenecks in

service delivery.

None – dependent on

finalisation of ASD

Dependent on finalisa-

tion of ASD

Performance manage-

ment

Levels to which the

individual performance

management system is

cascaded

Cascade the perform-

ance management sys-

tem to all levels of the

organisation by 2010.

Cascaded up to level 6.x Each HOD was respon-

sible for implementing

policies, procedures

and systems as com-

municated by Human

Resources. Human

Resources therefore

played a facilitative

role. Each HOD was

measured on his/her

individual scorecard

regarding implementa-

tion. Level 6 in this case

referred to the pre-ASD

structure, therefore

former Deputy Manager

level. A great effort was

made to discuss the

policies with the unions

in detail to reach a

collective agreement on

two policies. The unions

were seeking a mandate

from their members.

Agreements on two poli-

cies were therefore not

concluded. However the

system was implement-

ed on a trial basis down

to level 6 in the 2006/07

financial year.

Chapter 5

220


5.3.2.3 Other administration


i) Procurement

Demand management

Demand management ensured that the resources required

were well planned in advance so that they could be delivered

quality and quantity.

Logistics management

Logistics management addressed the setting of inventory lev-

management and vendor performance.

Disposal management

Disposal management was responsible for obsolescent plan-

posal strategy and the physical disposal process.

Acquisition management

Acquisition management established the total cost of ownership

published criteria and ensured that proper contract documents

were signed.

The details of tender/procurement activities for 2006/07 are as

follows:

Details of tender/procurement activities

Total number of times that Tender

Committee met during the year

Bid Evaluation Committee – three

times a month

Bid Adjudication Committee – twice

a monthTotal number of tenders considered 250Total number of tenders approved 235Average time taken from tender

advertisement to award of tender

90 days

by 2009:

221

ii) Customer care

The Customer Care Division established 23 customer care centres to serve the Tshwane community. These centres dealt with per-

KPA PRIORITIES/PROGRAMMES TARGET R’000

Develop a policy on City of Tshwane

employee awards to foster Batho Pele

principles.

Industrial theatre One per annum during the third

quarter

One awareness programme per

annum during the third quarter

Industrial theatre was deleted

from the GM scorecard by the

former Customer Care in the

2005/06 financial year.

Establish call centre in the north to make

the City of Tshwane more accessible.

Construct and renovate call centre in

the north.

Complete call centre by fourth

quarter (construction and renovation

only).

The City Manager held the

matter in abeyance for further

consideration.

Manage the regional customer care centre

and support services.

Ring-fence client services (finance) and

switchboard.

Finalise ring-fencing by the first

quarter.

Ring-fencing of client services

was finalised in Oct 2005.

No cost to CRM. Salaries

were covered by Finance

Department.Develop a perception survey policy to

assess Batho Pele compliance in the City

of Tshwane.

Internal and client perception survey Policy to be developed by the first

quarter

One annual perception survey R250 969Ensure compliance with Batho Pele

principles and service quality principles,

and norms and standards in the City of

Tshwane.

Develop Batho Pele policy and pro-

grammes.

Approve norms and standards policy

by the fourth quarter.

Complete the policy on quality as-

surance by the third quarter.

The approved norms and

standards policy was to be

implemented during the

2008/09 financial year.

No cost involved.

Funds made available to

purchase software: R4 millionIntroduce and develop the capacity of

Customer Relations Management.

Develop, introduce and implement a

corporate quality assurance system.

Develop a training programme in col-

laboration with Human Resources.

Tender on quality assurance system

by the third quarter

One training programme by the

fourth quarter

Abandoned in the 2005/06

financial year.

Abandoned in the 2005/06

financial yearAttend to 87,6% of calls on time. In-house training contributes to exceed-

ing the set target. Set norms and

standards to address the promptness of

other departments.

Total calls received in 2006/07

financial year = 391 056, of which

366 125 were answered immediately

(93,62%).

No cost

iii) Corporate services

Chapter 5

222


b) Key performance areas

Departmental KPA Key performance indicators Target 2006/07 Achieved 2006/07

Good governance through effective and efficient

corporate management policies and practices

Percentage compliance with all relevant

legislation, policies and procedures

100% 100%

Sustainability management Percentage increase in revenue collection 2% 2%Number of properties valued as a ratio of

total number of properties over a period of

three years

100%, split over three

years

Achieved

Prudent financial management Completed evaluation of the fleet study

and the implementation of the findings by

12/2007

100% complete 100% complete

Corporate human resource management – poli-

cies and practices

HIV and Aids awareness and VCT:

Number of peer educators/ and HIV/Aids

counsellors

10 10

HIV/Aids awareness and VCT:

Number of staff who have undergone VCT

100 100

Percentage representation of designated

groups according to departmental employ-

ment equity plan

80% Not achieved

Corporate risk management – policies and

practices

Management of assets and insurance

claims: Percentage risk reduction

Reduce by 2% 2%

Degree of compliance of municipal buildings

with requirements of Occupational Health

and Safety Act (OHSA) and City of Tshwane

building regulations

100% 100%

OHSA-compliant municipal-owned buildings

for which the Building Maintenance Section

is responsible

100% 100%

ICT services that support service delivery Percentage implementation of approved IT

governance model

40%

Number of IT-related initiatives implemented

that take government closer to the people

Two initiatives Two

Number of service level agreements

(SLAs) completed on internal support and

maintenance

Three Three

Degree of integration of the SAP system Two systems integrated TwoPercentage SAP system up and running 95% 95%Percentage IT infrastructure up and running 95% 95%

Ensure that human resource practices are in

line with international best practice, norms and

standards, and comply fully with applicable local

legislation

Percentage implementation of SLAs 100% 100%

Develop human resources Percentage implementation of Human

Resource Transformation Plan and labour

relations strategy

100% by 2009 Achieved

Percentage implementation of skills develop-

ment plans

70% by fifth year Achieved

Percentage improvement in skills capacity 5% improvement in

skills capacity per

annum

Not achieved

223

Departmental KPA Key performance indicators Target 2006/07 Achieved 2006/07

Percentage implementation of Human

Resource Transformation Plan

40% by first year 40%

Development of culture change framework,

cascading of individual performance agree-

ments

Cascade performance

management system up

to level 4.

Achieved

Percentage implementation of approved

skills development plan, career management

plan and competency framework

70% by fifth year Achieved

Increase participation and broaden the contribu-

tion in growing the city’s economy through the

development of SMMEs, cooperatives, the

informal sector and the roles of black people,

women and the youth.

Percentage of BBBEE vendors used 80% 80%

Improve local government’s responsiveness to

residents.

Percentage of telephone calls attended to on

time by customer care

83,60% During 2006/07, 391 056

calls were received, of

which 366 125 (93,62%)

were attended to im-

mediately.

Base customer relations management on Batho

Pele principles.

Percentage of municipal employees trained

in customer relations management

60% of all employees

by 2011

All customer care staff

were trained in the use of

the customer interactions

centre (CIC).Percentage reduction in customer

complaints relating to the Municipality’s

responsiveness

Establish a baseline. 696 544

5.3.3 Planning and development

5.3.3.1 City planning


ning and land-use management. All of the division’s functions

were performed in an integrated and holistic manner to ensure

functional interaction between the regions. The four issues of

major importance were:

Movement

Urban boundary

Open space and conservation

ning scheme for Tshwane. The draft scheme was unanimously

converted into the new proposed scheme notation. The formal

14 May 2007.

as the formal township establishment process had never been

concluded. Once the legal status of these areas had been de-

The City of Tshwane promised to formalise 13 informal areas by

to date. These were:

Chapter 5

224


and policies.


Analysis of the function 2005/06 2006/07 Planned: 2007/08

Total R Total R Total R1. Number of city-planning

staff and their cost to the

Municipality

341 83 145 676 285 85 229 045 329 97 258 459

- Senior managerial (general

manager, managers)

8 4 448 264 7 4 332 116 11 7 480 546

- Managerial (deputy

managers, chiefs, assistant

managers)

53 21 039 279 38 18 632 901 38 18 751 733

- Professional (architects,

consultants, project manag-

ers, etc)

146 40 136 417 151 48 662 593 156 51 006 474

- Field (supervisors, foremen) - - - -- Office (clerical, administra-

tive, secretarial, etc)

119 16 006 198 76 11 905 929 110 18 387 692

- Non-professional (drivers,

workshop assistants, etc)

15 1 515 518 16 1 695 506 14 1 632 014

- Non-professional (clerical,

administrative)- Temporary - - - -

2. - Contract 46 2 710 565 56 3 114 776 60 3 214 0763. Details and cost of incentives

for business investment

Not applicable

4. Details and cost of urban

renewal strategies

Done in-house Indirect cost to

Municipality5. Details and cost of rural

development strategies:

A multidisciplinary rural strate-

gy to address development in

the rural areas was drawn up.

Done in-house Only indirect cost

to Municipality:

strategy done

in-house

225

Analysis of the function 2005/06 2006/07 Planned: 2007/08

Total R Total R Total R6. Number of people em-

ployed through job creation

schemes:

- Short-term employment

- Long-term employment

Not applicable

Number of building inspectors

employed and their cost to

the Municipality:- Chief building inspectors 4 1 135 298 6 1 582 129- Building inspectors 26 8 947 573 26 6 879 657-Temporary 3 479 426- Contract

7. Details of building plans:- Number of site development

plans approved

1 399 1 362

- Number of building plans

approved

21 494 16 674

8. - Value of building plans

approved

12 762 536 300 10 431 463 000

9. Number of building-related

inspections conducted

73 460 80 592

10. Number of contravention

notices served

3 135 2 654

Number of occupation certifi-

cates issued

13 621 11 167

Chapter 5

226


c) Key performance areas

Key performance

area

Performance dur-

ing the year and

actual achieve-

ment against

targets

Actual

2005/06

Actual

2006/07

Target

2006/07

Planned targets

as per approved

budget

2007/08

Metropolitan Spatial Planning

Drafting and revising the

Metropolitan Spatial De-

velopment Framework

(MSDF)

A draft MSDF was final-

ised in June 2006.

Approved in November

2005

No additional work – the

MSDF would be revised

in the 2007/08 financial

year.

No target for the

2006/07 financial year

The MSDF would be

revised in the 2007/08

financial year.

Compiling strategic de-

velopment frameworks

Retail strategy and inner

city housing strategy

completed

Tshwane Spatial

Development Strategy

(TSDS): 2010 and be-

yond completed

Completion of TSDS:

2010 and beyond

Completion of TSDS:

2010 and beyond

Doing spatial planning Rural SDF compiled Hatfield Spatial De-

velopment Framework

(SDF) completed

Completion of Hatfield

SDF

Refine Hatfield SDF -

target by Feb 2008.

Metropolitan Planning -

would be responsible

for drafting the revised

and updated SDF

Nelson Mandela Drive

Play a leading role in -

the city’s preparations

for 2010, eg the SDF

for the Loftus precinct

and others.

Closer cooperation -

and liaison with the

Transport Division to

ensure the integration

of transport and land-

use system.

Compilation of -

Tshwane-wide poli-

cies, eg revising the

densification strategy.

Liaison and consulta--

tion with neighbouring

metropolitan and

district authorities.

227

Key performance

area

Performance dur-

ing the year and

actual achieve-

ment against

targets

Actual

2005/06

Actual

2006/07

Target

2006/07

Planned targets

as per approved

budget

2007/08

Regional Spatial Planning

Compilation of eight

regional spatial devel-

opment frameworks

(RSDFs)

The eight RSDFs were

finalised in June 2006.

These RSDFs were be-

ing realigned to the five

ASD regions.

RSDFs completed Draft RSDFs for five

ASD regions completed

RSDFs for five new ASD

regions to be completed

Compilation and imple-

mentation of the local

spatial development

frameworks (SDFs) and

policies

Hammanskraal SDF-

Heatherdale, Winter--

snest SDF, Pretoria

North SDF, Jacqueline

Drive SDF, Rubenstein

Drive SDF, Pretoria

West SDF, Rietval-

leirand and Waterkloof

Agricultural Holdings

SDF.

Division of agricultural -

land.

Others – créches, etc.-

Completed: Hammansk-

raal SDF, Heatherdale,

Wintersnest, Pretoria

North SDF, division of

agricultural land

Hammanskraal SDF –

report being drafted

Andeon, Kirkney and

Zandfontein urban

development zones and

Lotus Gardens node –

being compiled by the

Housing Department

Pretoria North CBD

– SDF approved on 24

April 2007

SDFs for the following

areas to be developed

and submitted to the

Council for approval:

Hammanskraal,

Andeon, Kirkney and

Zandfontein urban

development zone

April 2008

Land-use Management

Land-use management About 2 500 land-use

applications were dealt

with.

Almost 950 more ap-

plications were finalised

than received. This

could be attributed to

the number of applica-

tions (1 085) that had

been closed admin-

istratively because of

non-compliance by the

applicant.

2 503 applications were

received, of which 53

were administratively

closed upon submis-

sion of the relevant

documentation from the

applicants.

3 458 applications were

dealt with, of which

1 085 were administra-

tively closed because

of non-compliance by

applicants or waiting for

further information from

them.

106 city-planning reports

served before the

Council.

1 917 applications

received

2 306 applications dealt

with, of which 646 were

administratively closed

because of non-compli-

ance by or waiting for

further information from

the applicants.

176 city-planning reports

served before the

Council.

Chapter 5


Key performance

area

Performance dur-

ing the year and

actual achieve-

ment against

targets

Actual

2005/06

Actual

2006/07

Target

2006/07

Planned targets

as per approved

budget

2007/08

Development facilitation Various development

projects and initiatives

(in line with the planning

frameworks) were initi-

ated successfully:

Revision of the Gau--

train stations develop-

ment framework

Facilitation of various -

large developments

around the Gautrain

stations

Urban core develop--

ment guidelines

Finalisation of the -

Tsosoloso programme

to redevelop previ-

ously marginalised

areas

Securing funds from -

the National Treasury

for the Tsosoloso

programme

Drafting and imple-

menting new develop-

ment strategies and

interventions aimed

at developing the

neglected northern parts

of the city

Target date: April 2008

Gautrain:

Awaiting results of traffic

assessment for study

area

Land-use Legislation and ApplicationLand-use legislation and

application:

Compiling and maintain-

ing new zoning scheme

as required by the

Gauteng Planning and

Development

Act, 2003

Significant progress

was made with

capturing and verifying

existing zonings of all

properties in the newly

established metropolitan

area, specifically those

parts of the city where

zoning information was

lacking.

Almost 96% of all land-

use data were captured.

Embarked on the

compilation of one town-

planning scheme for

Tshwane

Draft Tshwane Town--

planning Scheme

approved on 23

November 2006

Public participation -

process completed

Approval of new

Tshwane Town-planning

Scheme

229

Key performance

area

Performance dur-

ing the year and

actual achieve-

ment against

targets

Actual

2005/06

Actual

2006/07

Target

2006/07

Planned targets

as per approved

budget

2007/08

Development ControlLaw enforcement

regarding illegal land-

uses, illegal building

work, illegal occupation

of buildings and illegal

outdoor advertising

Eradication of illegal -

land-uses, building

structures and outdoor

advertising

Increasing success -

achieved in the High

Court, Municipal Court

and Development

Control Court

Ten bad buildings were

being investigated

Nearly 800 court cases.

NBR, TPS and outdoor

advertising by-laws

15 000 contravention

notices issued for TPS

transgressions

50 contravention notices

issued for outdoor ad-

vertising

Removing all illegal

advertising on road

reserves and municipal

property

21 bad buildings under

investigation.

Nearly 1 895 court cas-

es, on non-compliance

with outdoor advertising

by-laws finalised

720 contravention

notices issued for

TPS transgressions

374 contravention no-

tices issued on outdoor

advertising

Removed

44 542 placards (includ-

ing posters, boards,

standing boards and

banners), 254 fixed

signs (pole signs), graf-

fiti (135 m2)

Demolishing ten bad

buildings in the inner city

Building ControlApproval of building

plans

Building plans 21 494 16 674 15 000

Value of building plans

approved

R1 276 253 300 R10 431 463 000 R990 055 000 000

Approval of site devel-

opment plans (SDPs)

SDPs 1 399 1 362 1 300

GeomaticsRendering a general

geomatic service

Most requests with

regard to surveys,

production of maps and

provision of information

were attended to in

the most effective and

efficient manner.

All requests were at-

tended to.

All requests for informa-

tion were attended to.

Attending to all requests

for information


for information

Chapter 5

230


Key performance

area

Performance dur-

ing the year and

actual achieve-

ment against

targets

Actual

2005/06

Actual

2006/07

Target

2006/07

Planned targets

as per approved

budget

2007/08

Maintenance of land

information system

Ongoing and accurate

capture of land informa-

tion for various parts of

the city


tended to.




for information


for information

To provide the City of

Tshwane with integrated

spatial information

This KPA did not exist

but required urgent at-

tention if the Municipality

wanted to improve its

information integrity,

availability and solution

possibilities.


tended to.




for information


for information

Streetscape Management

Management and

control of outdoor adver-

tising, and design and

implementation of plans

and policies to improve

the quality of the city’s

streetscape

Total income from

outdoor advertising was

R14 million against a

budgeted income of

R9 million.

R13,1 million

5.3.3.2 Economic development

(a) Overview and description of key issues

were:

1. To enhance local economic development through local eco-

nomic development projects that contribute to economic

creation of an environment conducive to investment and

creation of an awareness of the two economies that are

present in Tshwane and of the need to reduce poverty and

unemployment and prevent economic retardation (espe-

facilitation of economic activity in Tshwane that is char-

acterised by innovative high-tech enterprises in globally

competitive niche clusters and sectors that require semi-

and

support of urban agriculture.

2. To develop the economic environment of Tshwane through

the management and enhancement of sustainable and re-

sponsible tourism development and promotion. The growth

in tourism would be facilitated by establishing a regional tour-

to enlarge the impact on the second economy communities

3. To provide transport services and infrastructure.

4. To develop the economic environment of Tshwane by creat-

establishing unique trade centres where price forming and

231

nities nationally and internationally and managing infor-

managing and overseeing projects and ensuring that es-

establishing and developing agricultural trading infrastruc-

protecting the assets and personal safety of the different

(i) Economic growth

Chapter 5

232


(ii) Creation of employment

employment

0

1996 1997 1999 2000 2001 2002 2003 2004 2005 2006

0

Figure 2: Formal and informal employment

Source: Global Insight 2007

(iii) Supporting of growing and strategic sectors in the city to optimise investment opportunities and establish an integrated

economy

233

0.52

0.54

0.56

0.60

0.62

0.64

0.66

1996 1997 1999 2000 2001 2002 2003 2004 2005 2006

CoT

Figure 3: Gini coefficient

Source: Global Insight 2007

(iv) SMME development

improve a lot more if more formal jobs were created and new

businesses were established.

The City of Tshwane committed itself to facilitating the establish-

egy. Through this strategy it provided responsive and targeted

for this valuable business sector of our economy.

on a regular basis through various forums. One such forum was

resulted in a number of prioritised interventions which would be

ers.

in Tshwane.

opment as it contributed to the creation of jobs and alleviation of

to the City of Tshwane’s vision of it being a leading African capi-

tal city of excellence.

Chapter 5

234


(b) Analysis of the function

Statistical information and R expenditure 2005/06 2006/07

No Cost No Cost

Number and cost to employer of all economic develop-

ment personnel:

319 R45 717 256

- Professional (directors and managers) 54 R16 115 551

- Non-professional (clerical and administrative) 202 R23 655 459

- Temporary 25 R1 969 595

- Contract 38 R3 976 651

Note: total number to be calculated on full-time equiva-

lent basis; total cost to include total salary package

Detail and cost of incentives for business investment: R(000s)

TATA, Wonderboom Airport R106 million

Number of people employed through job creation

schemes:

- Short-term employment 3 663

- Long-term employment 100

Note: total number to be calculated on full-time equiva-

lent (FTE) basis; and should only be based on direct

employment as a result of municipal initiatives

Type and number of grants and subsidies received: R(000s)

Grant from Gauteng Tourism Authority for feasibility

study for Mamelodi Rondavels (Tourism Division)

1 R400 000,00

2010 FIFA World Cup funding received from Depart-

ment of Transport

R27 million (opera-

tional) and R14 million

(capital)

R41 000 000

Note: Total value of specific planning and development

grants actually received during the year to be recorded

over the five quarters - Apr to June last year; and July

to Sept, Oct to Dec, Jan to Mar, Apr to June this year

235

(c) Key performance areas

Local Economic Development

Key performance area Performance during the year,

performance targets against

actual achievement and

plans to improve perform-

ance

Current Target

Job creation through special eco-

nomic development initiatives

Business Week Initiative

Growth and Development Strategy

Agricultural Summit

SMME Summit

Creation of an enabling environment

for the retention, expansion and at-

traction of investments

Investment promotion Approved investment promotion

strategy

Approved investment promotion

strategy

New informal trade stalls and mainte-

nance of stalls

New hawker licences

Renewals of hawker licences

Event licences

New trading permits

Renewals of existing stand permits

Formal business

59

580

361

119

66

563

361

999

16

Support and development of SMMEs Micro MBA

Advanced entrepreneurial training

School entrepreneurship

Incubators

Cooperative support

Unzip programme

Start-up support

Tshwane business club

Information desk

Technical skills

50

51

Feasibility study

Feasibility study

48

715

Establish

120

Chapter 5

236


Agricultural Trading

KPA KPI Actual 2005/06 Target

2006/07

Actual

2006/07

Variance Reason for under-

performance / steps

taken to improve

performance

Planned

2007/08

1. To provide and

improve trade

centres for the

marketing of agri-

cultural produce

1. Maintenance

of buildings at the

market

98,43% 95% 106,6% 11,6% Unforeseen breakages

occurred during the last

quarter.

95%

2. Convert part

of the old house-

wives market into

four processing

facilities.

Relocation of housewives -

market to new retail

facility on western side of

the market

Plan to convert part of -

the old housewives mar-

ket into four processing

facilities

Four

processing

units by 30

June 2007

Number of

units reduced

from four

to three; all

three units

completed

One unit Decided to combine the

two proposed processing

areas to accommodate a

new buyer from Johan-

nesburg and this resulted

in three processing areas

Project com-

pleted

2. To develop

agricultural trade

centres

1. Growth in

turnover

16,25 Better than

industry’s

growth

The market

achieved a

growth in

turnover of

14,09%.

Growth

was 5,90%

better than

industry

growth.

Target achieved Better than

the industry’s

growth

2. Growth in

mass

-2.40% Better than

industry’s

growth

The market

achieved

a growth

in mass of

7,42%.

Growth

was 2,80%

better than

indus-

try growth.

Target achieved Better than

the industry’s

growth

3. Train informal

traders.

60 60 traders

by 30 June

2007

60 informal

traders trained

by 30 June

2007

100% class

attendance

Target achieved 60 informal

traders of

whom 15 were

young people

4. Develop a

marketing plan for

the division.

Activity plan was in place

to promote the services

of the Tshwane Market. A

marketing plan would be

developed for the 2006/07

financial year.

Marketing

plan for

2006/07 by

30 August

2006

The SED

signed the

marketing

plan on 30

August 2006

and it was

implemented.

The budget

was spent

according to

the official

marketing

plan.

Target achieved Marketing plan

for 2007/08 by

31 December

2007

237


2006/07

Actual

2006/07


performance / steps

taken to improve

performance

Planned

2007/08

5. Upgrade the

Tshwane market

website to include

historical informa-

tion.

Website existed but only

current trading information

was available.

To be com-

pleted by

September

2006

Historical

information

button was

developed and

implemented

by 9 Septem-

ber 2006

Buyers,

producers

and industry

role play-

ers were

using the

information

as part of

their man-

agement

decisions.

Target achieved Further devel-

opment of the

website

Develop the

website to sup-

port the City

of Tshwane’s

website.

6. Strategic

workshop for all

role players at the

Tshwane Market

Planned a workshop for all

industry role players at the

Tshwane Market

To be

completed

by March

2007

The workshop

was held with

the Economic

Development

cluster on 24

August 2007.

Other role-

players in

the industry

were not

involved in

the work-

shop.

Management took a deci-

sion to fund other priority

projects and therefore

the workshop was to be

carried over to the next

financial year.

Feasibil-

ity study to be

undertaken

to investigate

the possible

establishment

of the market

in the north

7. Percentage

market share of

fresh-produce

markets

16,90% 16,90% The market

achieved a

market share

of 17,63%.

The market

share was

0,73%

better than

the targeted

share.

Target achieved 17,80%

3. To manage

agricultural trade

centres

1. Utilisation of

rentable office

floor space 92%

90% 92% 2% Above target

90%

2. Utilisation of

rentable store

floor space

99%

95% 99,51% 4,51% Above target

95%

Chapter 5



2006/07

Actual

2006/07


performance / steps

taken to improve

performance

Planned

2007/08

3. Consignment

audits at the

market agents

240 25 audits

per month,

equal to

300 per

year

330 audits 30 Above target 350

4. Audits on direct

deliveries to ten-

ants: Recovery of

market’s dues

Market’s dues recov-

ered on a turnover of

R793 540,00

Market’s

dues re-

covered on

a turnover

of R850

000,00

R1 012 896,14

direct turnover

achieved

R162 896 Above target Market

dues were

recovered on

a turnover of

R800 000,00.

5. Electronic

sales system

availability 99,5%

99,50% 99,60% 0,10% Above target

99,5%

6. Ensure a

safe marketing

environment.

64% Successful

apprehen-

sions =

66%

50% 16% 54% of all incidents were

produce theft, which was

the primary reason for

not meeting the target.

Reaction to such incidents

was dependent on fast,

accurate information to

apprehend the perpetra-

tor. Unfortunately this

was not the case in most

instances and resulted in

a low success rate.

50%

7. Integrated

account payment

solution using

Smart Box tech-

nology

Phase 1: Planning for

Smart Box units for market

users

Implemen-

tation of two

Smart Box

units by

30 Decem-

ber 2006

Two Smart

Box units

were imple-

mented by

April 2007.

FNB identified further

critical back office

development. As a result

implementation was post-

poned to July 2008.

Implementation

of two Smart

Boxes by 30

June 2008

239

Tourism

Key performance area Performance during the year, performance targets

against actual achievement and plans to improve

performance

Current Target

KPA1. Achieve 4,5% growth per annum in

overnight tourists.

Average yearly contribution in tourism industry adding 4,6% to Gauteng

economy (source: GTA)

± 4,6% 4,5%

KPA 2.1 Leverage growing and strategic sec-

tors in the city to optimise investment opportu-

nities and establish an integrated economy.

1. Township Bed and Breakfast – community capacitation and ensuring

that standards were adhered to

Most establishments not suitable for grading; owners advised to

improve quality of establishments to meet required standards

25, plus one

tavern

80

KPA 2.4: Optimise citywide tourism opportuni-

ties to befit a cultural and business capital city.

2. SA host training –

community tourism

(capacitation and empowerment)

KPA 2.5: Increase participation and broaden

the contribution to growing the city’s economy

through the development of SMMEs, coopera-

tives, the informal sector and the role of black

people, women and the youth.

Township tour guide training – community tourism (capacitation and

empowerment)

3.Tour operators/guide workshop) – due to other commitments many

people did not attend the workshop.

KPA 2.12: Review and align the organisational

structure to the strategic objectives.

4.Clustering process – community tourism (capacitation and empower-

ment)

5. Women’s month workshop – Recognising women in the tourism

industry

6. Youth-in-tourism conference – capacitation of young people

54

45

35

54

45

35

7. HIV training – raising awareness in different townships in Tshwane

8.International Pretoria Show – creating a platform for emerging tour-

ism businesses

9. Heritage Day celebration – creating a platform for emerging tourism

businesses

18 townships

20

180

-Hammanskraal

23 people

-Ga-Rankuwa

23

-Soshanguve 29

-Atteridgeville 33

-Inner city 51

-Stanza Bopape

35

18 townships

120

180

-Hammanskraal

23 people

-Ga-Rankuwa

23

-Soshanguve 29

-Atteridgeville 33

-Inner city 51

-Stanza Bopape

35

Chapter 5

240




performance

Current Target

10. Freedom Day exhibitions – creating platform for emerging tourism

businesses

11. Women’s Day exhibitions – creating platform for emerging tourism

businesses

Tourism businesses

12. Feasibility study for Mabopane, Atteridgeville and Soshanguve – to

develop tourism infrastructure (percentage growth as stipulated in

Tourism Master Plan)

20 SMMEs

200 SMMEs

100 SMMEs

100 SMMEs

20 SMMEs

200 SMMEs

100 SMMEs

100 SMMEs

13. Tourism signage – to develop tourism infrastructure (percentage

growth as stipulated in Tourism Master Plan)

Feasibility study

for the three

areas was

successfully

completed.

139 signs

To unlock tour-

ism potential in

all three areas

139 signs

Implementation of tourism events – hosting

Tourism Month, Woman’s Month, and Youth-in-

tourism activities in Tshwane

14. Had a tour for the Swedish representatives of the International

Educational and Cultural Exchange Programme in March 2007 and the

Gabon delegation (for Gauteng Tourism Authority) 6 – 9 May 2007 and

participated in National Heritage Day and World Tourism Day.

One media tour

One industry

tour

Two main events

One media tour

One industry

tour

Two main eventsCarried out Tourism Events Implementation

Programme by giving ad hoc event support

and facilitating linkage between organisers

and service providers/artists

National Library Week in Saulsville Library in Atteridgeville,

17 May 2007;

IV FASU Games at UP from 1 to 8 July 2006;

Mandela Birthday Bash, Hammanskraal, 13 to 15 August 2006; Free-

dom Day celebrations; Accommodation Conference, October 2006.

About six ad hoc

events

Five ad hoc

events

Carry out Tourism Events Implementation

Programme by planning and holding exhibi-

tions and events

1. IMEX in Frankfurt from 17 to 19 April 2007

2. Chinese Outbound Travel and Tourism Market from 14 to

16 May 2007

3. Tourism Indaba in Durban from 12 to 15 May 2007

4. ITB in Berlin from 7 to 11 March 2007; Meetings Africa, Sandton

Convention Centre, 27 February to 1 March 2006

5. SA Week in Washington, 7 to 9 September 2006

6. World Travel Market, 6 to 9 November 2006 at Excel Exhibition

Centre in London

7. Pretoria International Show from 23 August to 3 September 2006 at

the Tshwane Events Centre

8. SAACI conference and expo from 13 to 15 August 2006 at the Inter-

national Convention Centre in Durban

9. International Fair on 11 November 2006 at the Union Buildings

Six major inter-

national/regional

exhibitions;

three major

local/domestic

tourism exhibi-

tions

Two regional

exhibitions;

two national

exhibitions;

three interna-

tional exhibitions


241



performance

Current Target

Implement critical success factors by facilitat-

ing and promoting initiatives to improve acces-

sibility – Batho Pele principles.

Friendly facilities for the physically challenged

1. Mobility impaired A – Z Guide/Directory

2. Pretoria Show – the division collaborated with the Friends of the Zoo

on an exhibition of taxidermy animal trophies for the handicapped.

3. SA Tourism Sho’t Left packages included tours for people with dis-

abilities.

One directory

One exhibition

One tour pack-

age

One directory

One exhibition

One tour pack-

age

Carry out Tourism Training and Skills Develop-

ment Programme by coordinating the annual

Tshwane Tourism Awards.

Tshwane Tourism Awards were handed over at the CSIR International

Convention Centre, Tshwane, on 13 April 2007.

One collabora-

tive award

One collabora-

tive award

5.4.1 Health


5.4.1.1 Environmental health

water quality

Air-quality management

Waste management

Disposal of the dead

Chemical safety

Client and information services

5.4.1.2 Primary health care

maintain the current quality of primary health care serv-

load.

5.4.1.3 Ambulances (emergency medical services)

accordance with provincial norms and standards.

Chapter 5

242


Type Emergency Medical Services call analysis 2006/07

JUL TO OCT NOV TO FEB MAR TO JUN TOTAL

Priority 1 276 365 271 912

Priority 2 7 547 13 404 13 122 34 073

Priority 3 6 227 8 222 7 145 21 594

Priority 4 261 345 436 1 042

No service/

transport

4 504 4 892 5 236 14 632

Total 18 815 27 228 26 210 72 253

TYPE JUL

TO OCT

NOV TO

FEB

MAR

TO

JUN

TOTAL

Pedestrian 030 3,76% 921 848 951 2 720

Motor vehicle accidents

031

7,37% 1 875 1 744 1 713 5 332

Taxi

032

0,29% 92 124 1O4 216

Bus

033

0,06% 15 17 15 47

Pediatric 062 3,16% 621 680 988 2 289

Maternity 051 9,58% 1 894 2 478 2 556 6 928

Total 24,22% 5 418 5 891 6 223 17 532


243



No R cost No R cost

Number and cost to employer of all ambulance service staff 189 36 794 545 185 41 942 070

- Professional workers (doctors/specialists) N/a <cost>

- Professional workers (nurses/aides) N/a <cost>

- Para-professional workers (qualified ambulance officers) 185 37 881 794

- Non-professional workers (unqualified ambulance officers) 1 160 160

- Temporary workers –

- Contract workers 98 3 900 116

Note: Total number to be calculated on full-time equivalent (FTE) basis; total

cost to include total salary package.

41 942 070

Number and total operating cost of ambulance vehicles servicing population - 3 City of

Tshwane and 30

GPG ambulances

- 4 primary re-

sponse vehicles

- 1 City of

Tshwane and

40 GPG ambu-

lances (these are

available but not

manned)

- 6 primary re-

sponse vehicles

R (000s)

- Aged less than ten years <total> <cost>

- Aged ten years or more <total> <cost>

Note: This figure should be taken from the plant replacement schedule.

Total annual patient head count 62 496 57 621

- 65 years and over Stats n/a

- between 40 and 64 years Stats n/a

- between 15 and 39 years Stats n/a

- 14 years and under Stats n/a

Note: Give total number transported. 53 621

Type and number of grants and subsidies received R (000s)

Chapter 5

244



No R cost No R cost

GPG subsidy for ambulance 1 GPG subsidy R38 967 006

Note: Total value of specific health ambulance grants actually received during year to be recorded over five quarters: April to June in 2006, July to September

2006, October to December 2006, January to March 2002 and April to June 2007

Total operating cost of health (ambulance) function R49 088 167

Statistical information 2005/06 2006/07

No R No R’000

Number and cost to employer of all health staff 467 77 171 862 257

- Professional workers (doctors/specialists)

17 15 5 000

- Professional workers (nurses/aides)

190 181 29 000

- Para-professional workers (qualified clinic staff)

25 24 5 000

- Non-professional workers (unqualified clinic staff)

34 34 4 000

- Temporary workers

0 3 230

- Contract workers

0 0

Total operating cost of health (clinic) function 79 mil


245


KPA KPI Achieved

2005/06

Achieved

2006/07

Target Comment on variance

Provide primary health care serv-

ices to uninsured population.

Per cent households with

access to PHC within a

radius of 5 km

80% 98% 80% Adherence to business plans and

continuous monitoring of performance

Increase no of clinic users a year

to at least 1 224 355 by 2011.

No of clinic users a year 1 033 861 1 112 554 clinic

users

1 007 280 Improvement of services at clinics and

monitoring of queues contributed to the

achievement of the target.

Ensure EDL medicine is available

at all PHC clinics.

Per cent of EDL medicine

available to PHC clinics at

all times

90% 99,3% EDL

medicine available

to PHC clinics at

all times

90% Continuous engagement with the GPG

and monitoring of deliveries to the

City of Tshwane ensured availability

of drugs.

Ensure professional nursing staff

are available at clinics.

No of professional nurses

per 100 000 of uninsured

population

21 21,4 profes-

sional nurses per

100 000 of unin-

sured population

21 Will continue to negotiate with the GPG

for staff allocations. Provincialisation of

primary health care was a risk, since

vacancies had to be filled by the GPG.Run HIV campaigns. No of HIV campaigns a

year

N/a 10 10

Implement the legislated environ-

mental health functions.

Per cent implementation

of identified environmental

health functions prescribed

by the National Health

Act for municipal health

services

N/a 25% implementa-

tion of identified

environmental

health functions

prescribed by the

National Health

Act for municipal

health services

35% No budget to appoint environmental

health practitioners to extend services

Attend to patients (ambulance

services) in accordance with

provincial norms and standards.

No of patients attended to

a year, on request and in

accordance with provincial

norms and standards

69 677 47 026 38 000

Chapter 5

246


5.4.2 Community and social services


5.4.2.1 Environmental Management

ensure that the City of Tshwane’s residents were provided with

open spaces and a clean and sustainable living environment.

The section was also responsible for the facilitation and coordi-

ernment level and the management of development impacts on

mented from an open-space perspective on about 1 000 devel-

ery of a design service and this included the design of nine new

projects.

The activities of the division were carried out by the following

sections:

5.4.2.2 Environmental Planning

The section was responsible for the formulation of policy on

priority intervention areas.

5.4.2.3 Cemetery Services

and appropriate services in terms of aesthetically acceptable

41 cemeteries and one crematorium.

5.4.2.4 Parks and Horticultural Services

This section was responsible for the horticultural development

open spaces.

5.4.2.5 Nature Conservation and Resorts

related activities were provided and promoted.

facility. The master development plan was developed in collabo-

ration with the local community and jazz fraternity.

5.4.2.6 Environmental Resource Management

This function included:

environmental management systems and programmes in

execution of environmental audits and monitoring of the

designing and implementing general awareness and job-

ees.

to disclose its environmental performance in terms of environ-

mental indicators.


247


2005/06 2006/07

Details Total R Total RNumber of staff associated with Cemetery

Services and their cost to the Municipality

35 6 419 315 35 6 419 315

Total operating cost of Cemetery Services 632 916 000 294 1 212 973

2005/06 2006/07

Details Total R Total R

Number of staff associated with Parks and

Horticultural Services and their cost to the City

of Tshwane

1 049 13 367 695 1 053 13 767 695

Total operating cost of Parks and Horticultural

Services

147 606 719 149 835 887

2005/06 2006/07


Number of staff associated with Nature

Conservation and Resorts and their cost to the

Municipality

467 9 109 951 474 9 789 717

Total operating cost of function 48 375 940 33 353 137

2005/06 2006/07


Number of staff associated with Environmental

Resource Management and their cost to the

City of Tshwane

11 4 967 430 13 5 217 621

Total operating cost of function 5 738 886 6 041 398

AMOUNT BEE MEN BEE WOMEN WHITE WOMEN WHITE MEN ORGAN OF STATE

R2 648 187 167,72 R1 109 134 343,27 R201 638 452,65 R145 930 096,24 R1 182 642 911,83 R8 841 363,73

100% 41,88% 7,61% 5,51% 44,66% 0,33%

Chapter 5



Key performance

area

Performance during the

year and actual achieve-

ments against targets

Actual

2005/06

Actual

2006/07

Target

2006/07

Development and

maintenance of decora-

tive and play parks

New parks were developed in

the northern areas.

Infrastructure and depots were

upgraded to ensure the render-

ing of an effective service.

6 new parks were

developed as new

projects and 16 existing

parks were upgraded as

second-phase projects.

6 new parks were devel-

oped in the north.

The parks depot at Gars-

fontein was successfully

relocated to Pretorius Park.

3 existing parks were upgraded,

and

25 existing parks were up-

graded as second, third and

fourth-phase projects

4 500 000

Development and

maintenance of decora-

tive and play parks

New parks The Proposed Open-space

Prioritisation Strategy

document was finalised.

12 new parks were

developed as new projects

and 12 existing parks were

upgraded as second and

third-phase projects.

12

Upgraded

parks (maintained parks)

245 developed parks

and 300 undeveloped

parks were maintained

throughout Tshwane.

Maintenance of

339 developed parks,

397 undeveloped parks,

7 decorative parks,

111 developed traffic

islands,

47 undeveloped traffic

islands,

28 cemeteries, 106 other

municipal facilities, and

160 sports facilities

339 developed parks

397 underdeveloped parks

7 decorative parks

111 developed traffic islands

47 underdeveloped traffic islands

28 cemeteries

106 other municipal facilities,

and 160 sports facilities

Provision of an urban

forestry service

Approximately 10 000 trees

were planted.

10 972 trees 10830 trees 10 000 trees


249

Key performance

area

Performance during the



Actual

2005/06

Actual

2006/07

Target

2006/07

Provision of a nursery

and training service

To propagate and provide

enough plants for Tshwane’s

parks, traffic islands, squares

and boulevardsPlants issued 104 755 plants issued,

Value: R2 071 770

104 401 plants issued

Value: R2 613 865

120 000

Indoor plants maintained 1 400 indoor plants

maintained

Value: R393 227

1472 indoor plants main-

tained

Value: R389 153

1 400

Plants sold

32 947 plants sold

Value: R445 834

(income)

44 236 plants sold

Value R628 140 (income)

R321 466 + 25%

Generate income

through decorations

and hiring out of plants.

Doing decorations and hiring out

plants to generate an income for

the Municipality

31 decorations

Value: R48 622Decorations and hiring (rand

value)

35 loads of plants hired

out

Value: R19 046 (income)

48 loads

Value: R51 880 (income)

Decorations done for free and

the value thereof

21 decorations created

(income value R52 000,

but discounted to

R29 728)

29 decorations built

for mayoral or of-

ficial purposes (income

value R100 977, but

discounted by 100%)

30 decorations created

Income value R112 459,

but discounted by 100%

Chapter 5

250


Key performance area Performance during the year

and targets

Actual

2005/06

Actual

2006/07

Target

2006/07

Management and administration General 3 208 253 2 150 385 5 596 298Swimming pools Maintain and manage 23 municipal swim-

ming pools.

13 510 378 10 272 433 12 264 896

Resorts

Maintain and manage 9 resorts, 3 cara-

van parks and several camping sites.

14 381 434 10 674 384 14 390 110

Nature conservation

Maintain and manage 5 nature reserves,

3 bird sanctuaries and general urban

nature areas (rivers, ridges, mountains

and wetlands).

15 315 283 12 384 768 16 264 456

Total income Entrance fees and hiring of facilities

(activities)

5 524 091 5 612 770 6 735 324

Key performance area Performance during the



Actual

2005/06

Actual

2006/07

Target

2006/07

Development of Hatherley and

Honingnestkranz cemeteries

Phase 2 completed for both cem-

eteries; construction of infrastruc-

ture (phase 3) to be undertaken in

the next financial year.

R1 144 928

+

R923 978

=

R2 068 906

R919 056

R997 438

R1 000 000

R1 000 000

Eersterust Cemetery Landscaping and paving of internal

roads

R960 263 R387 725 R750 000

Lotus Gardens Cemetery Upgrade of water pressure system

and admin block, building of a

guardhouse and paving of 2 internal

roads

R744 385 R ??? R ???

Upgrading of existing cemeter-

ies:

Atteridgeville and Saulsville

cemeteries

Winterveld Cemetery

Atteridgeville Cemetery:-

Concrete pathways, resurfacing

of asphalt roads and repairs of

pedestrian gates

Saulsville Cemetery: -

Upgrade of electrical work, new

main electrical connection to

property, upgrade of new en-

trance and exit gates, landscap-

ing and concrete grave markers,

and repair and installation of new

irrigation system

Five Acres, Ten Acres and New -

Winterveld cemeteries:

Fencing and paving of internal

roads

R 561 772

R18 206

R 750 000

R610,00


251

Key performance area Performance during the



Actual

2005/06

Actual

2006/07

Target

2006/07

Ga-Rankuwa Cemetery Fencing and internal roads R44 779 R1 000 000

Soshanguve Cemetery Fencing, water connection,

new entrance and exit gates, up-

grade of admin building, landscap-

ing and paving of internal roads

R865 803 R1 316 000

Dilopye Cemetery Internal roads, fencing

Grave markers, repair of building

and water connections

R80 716 R154 000

Other cemeteries Suurman: Geotech studies

Grave markers on various roads

R859 277 R1 163 256

Mamelodi cemeteries Fencing

Water connection east

Internal roads

R1 942 866 R2 000 000

Key performance area Performance during the year and

targets

Actual

2005/06

Actual

2006/07

Target

2006/07

Target

2007/08

Environmental training and aware-

ness

10 programmes implemented 12 13 10 10

Environmental risk management 5 programmes implemented 5 5 5 5Corporate environmental compli-

ance

25 programmes implemented 25 30 40 30

Environmental policies and strate-

gies

Development of 7 environmental strategies

or policies

7 19 19 3

TARGET ACHIEVED 30 JUNE 2007

Ensure that at least 25 product categories procured by the City of

Tshwane are identified and procured at least partly in an environment-

friendly manner.

Programme established

10 product categories identified

Reduce the environmental impact of municipal activities through reduc-

tion by 10% in non-recycled internal paper consumption, water consump-

tion and energy consumption per employee.

Paper consumption programme established and project in progress

Consultant appointed to audit water consumption and make recommen-

dations on various municipal buildings

Energy consumption programme established and project to retrofit

selected municipal buildings in the 2007/08 financial year in the planning

phase

Chapter 5

252


TARGET ACHIEVED 30 JUNE 2007

Incorporate appropriate environment-responsible technologies into all

City of Tshwane infrastructure, facilities, new municipal buildings and

subeconomical housing projects.


Guidelines on green infrastructure and facilities and supporting MIS

finalised

Environmental considerations included in the project plan for the new

Munitoria

Energy consumption programme established and the project to retrofit

selected municipal buildings in planning phase

Project in progress at Rooiwal Power Station to replace geysers with

solar panels Establish an incentive scheme for developers to integrate environmental

best practices into their project planning.


Project brief finalised

Quotation obtained

Process initiated for Bid Committee approval

To be implemented in 2007/08 financial yearIncorporate bicycle routes in at least 5% of Tshwane’s roads. Programme established

Pilot project in progress in Atteridgeville

Establish an incentive scheme for commuters who use public transport. Baseline study of City of Tshwane ITP finalised


Reduce unaccounted water losses in Tshwane by 5%. Incorporated into scorecard of the Water and Sanitation Division

Water and Sanitation operational matterRehabilitate 3% of existing, degraded wetlands in Tshwane. Programme in progress

Baseline study conducted and 2 wetlands identified for rehabilitation

Negotiations in progress to initiate rehabilitationEnsure that the City of Tshwane’s contribution to air pollutants in

Tshwane does not exceed South African air quality standards for more

than 10 days a year.


Target contained in, and managed in terms of, the Tshwane Air Quality

Management Plan

Provide one hectare socio-economic space for every 1 000 people in

Tshwane.


Target contained in the Tshwane Open-space Framework and operations

of the Environmental Planning SectionDiversify energy supply and increase renewable and cleaner energy

sources by 3%.


Target contained in and managed in terms of, the Sustainable Energy

and Climate Change Strategy

Use of methane gas initiated Eradicate 100% of alien invasive species in municipal nature reserves. Programme established

Part of operations of Nature Conservation and Resorts Section Promote urban greening through the establishment of at least 4 000 new

indigenous trees in Tshwane.


Part of operations of Parks and Horticulture SectionReduce per capita waste disposal to landfill by 15%. Programme established

Council report being processed

Building rubble and garden waste recycling tenders still outstandingUndertake reasonable measures to ensure that emergencies attended

to by the City of Tshwane are undertaken in an environment-responsible

manner.

Programme in progress

Council report being processed


253

5.4.2.7 Sport, recreation, arts and culture


agent for community development and education by providing

services were included:

Development and maintenance of a reading culture

programmes

Management and development of an electronic informa-

ers such as government and communities

of Tshwane

velopment of art and culture

Upgrading museums

Developing indigenous dance and music

Developing classical dance

Developing visual art

gramme

Training museum educational assistants and tour guides

Maintaining sport and recreation facilities in Tshwane

properly

Developing sport and recreation-related infrastructure in

areas with the greatest need

Upgrading sport and recreation infrastructure in line with chang-

ing community needs

success of their mass-participation programme

ice to the community at all service points

World Cup

Continuously supporting and interacting with local sport

the subdivision

use of sport and recreation facilities

Chapter 5

254


(b) Analysis of the function:

Nature and extent of facili-

ties provided

2006/07

No of facilities No of users R operational cost

- Library services 38 2 201 524 10 940 968

- Museums and art galleries 3 museums and 1 art gallery 32 000

- Other community halls or

facilities

16 sport facilities, 6 culture facilities 14 892 bookings a year

(sport) and 120 000 users

per year (culture)

- Sport facilities (specify) Multipurpose courts (16)

Rugby fields (28)

Cricket pitches (30)

Netball courts (31)

Basketball courts (32)

Tennis courts (313)

Soccer fields (88)

Scraped fields (117)

Bowling greens (40)

Korfball courts (20)

Athletics tracks (11)

Hall for the disabled (1)

Tug-of-war field (1)

Squash courts (16)

Softball diamonds (15)

Hockey fields (8)

Pigeon clubs (2)

Wrestling club (1)

Gymnastics club (1)

Juskei pits (38)

Golf courses (2)

Pitch ‘n putt courses (2)

Radio yacht club (1)

Driving ranges (2)

Runners’ clubs (3)

Sport centres (5)

About 28 925 bookings

a year

Number and cost to employer of all personnel associated with each community

services function:

R(000s)

- Library services 193 32 800 000

- Museums and art galleries 21 5 700 000

- Other community halls or

facilities

29 2 720 000

- Sport facilities 95 14 900 000

255


Key performance area Actual performance

for 2005/06

Cost of

events for

2005/06

Actual events

2006/07

Target

monetary

value 2006/07

Planned events

2007/08

1. Enhance customer

relations management

and service delivery

levels through Batho Pele

principles.

2. Cultural development:

Performing arts and visual

arts

3. Facility management:

Development of new facili-

ties, upgrading of existing

facilities, maintenance of

heritage sites, management

of existing facilities (opera-

tions including rentals)

4. Event management:

Cultural programmes, com-

munity projects, exhibitions

1.1 Antiques and crafts

fairs, 16 Dec and 1 May

1.2 International Museum

Day, May 2006

3.1 Upgrading of museums:

Installation of emergency

generator at Pretoria Art

Museum

3.2. Construction of the

Mabopane Dance Hall

3.3. Construction of the

Chief Tshwane statue

4.1 Freedom Day

4.2 Women’s Day

4.3 Unveiling of the Solo-

mon Mahlangu statue,

17 Sep 2005

4.4 Opening of the

Saulsville Arena, 15 Dec

2005

4.5 Launch of the Mayoral

Choir, 16 Dec 2005

4.6 Opening of the Mabo-

pane Dance Hall, 20 Jun

2006

4.7 Sasol New Signatures

exhibition

Not available 1.1 Antiques and crafts


1.2. International Museum

Day, May 2007

2.1 Olievenhoutbosch

visual arts programme

2.2 Contemporary dance

programme

2.3 Indigenous classi-

cal African drumming

programme

3.1 Upgrading of muse-

ums: Implementing audio

guides at Melrose House

3.2 Construction of Temba

Community Hall

3.3 Construction of Suur-

man Community Hall

4.1 Reconciliation Day

4.2 Unveiling of the Chief

Tshwane statue

44 Heritage Day

4.5 Freedom day

4.6 120 years celebration

of Melrose House

4.7 Archaeology of Time

exhibition

4.8 Sasol New Signatures

exhibition

4.9 Hiding behind simple

things

4.10 Confluence 2007 (col-

laboration with Ekurhuleni

and Johannesburg)

R 670 713,16 1.1 Antiques and crafts


1.2 International Mu-

seum Day, May 2008

2.1. Youth Cultural

Dance Show, June

2008

2.2. Education as-

sistant development

programme,

2007/08

3.1 Upgrading of muse-

ums: Upgrading of Fort

Klapperkop

4.1 Capacity-building

programme, Dec 2007

4.2 Symposium, Feb

2008

4.3 Human Rights Pro-

gramme, Mar 2008

4.4 Solomon Mahlangu

Day, 6 Apr 2008

4.5 Freedom Day cel-

ebrations, Apr 2008

4.6 Croatian graphic

art, 14 Mar to 30 Apr

2007

Chapter 5

256



for 2005/06

Cost of

events for

2005/06

Actual events

2006/07

Target

monetary

value 2006/07

Planned events

2007/08




4.7 Solomon Mahlangu

Day, 22 Apr 2007

4.8 Freedom Day,

27 Apr 2007

4.9 Nelson Mandela

celebrations, Jul 2007




4.10 Sasol New Signa-

tures exhibition, Aug to

9 Sep 2007

4.11 Women’s Day,

9 Aug 2007

4.12 Feast of the

Clowns, 25 Aug 2007

4.13 Soul of Africa

exhibition, Sep to Nov

2007

4.14 Launch of the

audio guides, 5 Sep

2007

4.15 Pale ya Rona

Carnival, 8 Sep 2007

4.16 1 000 Days

Countdown to 2010,

15 Sep 2007

4.17 African literature

workshop, 19 Sep 2007


for 2005/06

Cost of

events for

2005/06

Actual events

2006/07

Target

monetary

value 2006/07

Planned events

2007/08

Enhance customer relations

management and service

delivery levels through


1. National Library Week

2.Opening of Winterveld

Library

3. Launch of Halala Compu-

ter Centre 4.

ABET training started in

Ga-Rankuwa

Not available 1. LIASA Conference, Sep

2006

2. Launch of the ABET

programme in Temba,

Hammanskraal and Ga-

Rankuwa, 26 Oct 2006

R 207 832 1. Opening of KT

Motabatse

2. Opening of Nell-

mapius

3. SA Library Week

257


for 2005/06

Cost of

events for

2005/06

Actual events

2006/07

Target

monetary

value 2006/07

Planned events

2007/08





5. Start of programme for

youth attendance of Council

meetings

6. Youth training on job

hunting, interview skills

7. Tshwane reading awards

8. Authorship programme

3. Launch of SA Library

Week, 17 Mar 2007 at

Saulsville Library

4. Youth development

training, Apr 2007

5. Computer training at

3 facilities; certificates

handed over on 25 Jun

6. Learners attending

Council meetings

4. ABET training

5. Computer training

6. Learners attending

Council meetings

7. Tshwane reading

awards

8. Authorship pro-

gramme





1. Opening of Super Sta-

dium, 6 Aug 2005

2. Tshwane Sport Day,

9 Sep 2005

3. City-to-City Heritage

Marathon, 25 Sep 2005

4. National Business Relay,

8 Oct 2005

5. Sport day for the disa-

bled, 10 Jun 2006

6. Presentation of develop-

ment programmes in

athletics, soccer, basketball,

netball, tennis and cricket

R443 099,33 1. City of Tshwane Sport

Day, 6 Sep 2006

2. City-to-City Heritage

Marathon, 25 Sep 2006.

3. National Business Relay,

7 Oct 2006

4. Mayoral Golf Day, 20

Oct 2006

5. OR Tambo Games, 20

Oct 2006

6. Sport Day for the Disa-

bled, 5 May 2007

7. Presentation of 17 de-

velopment programmes

R 415 866,89 1. National Life Saving

Championships

2. Netball Indaba

3. Sport Day for the

Disabled

4. International Korfball

Tournament

5. Dlala Ntombazana

6. 1 000 Days to 2010

7. International street

soccer match

Chapter 5



for 2005/06

Cost of

events for

2005/06

Actual events

2006/07

Target

monetary

value 2006/07

Planned events

2007/08

7. Establishment of the

sport councils in all six

demographic areas

8. Implementation of the

Hub Programme

9. Establishment of three

new hubs in Tshwane

8. Monthly Sport Council

meetings in all six geo-

graphical areas

9. Establishment of one

new hub in Tshwane

10. Completion of

Soshanguve Block X multi-

purpose sport facility

11. Completion of Klip-

Kruisfontein Community

Centre

12. Presentation of sport-

related workshops on:

- How to establish a club

- How to manage a club

9. City of Tshwane

Sport Day

10. International Karate

Championships

11. National Cricket

Club Championships

12. International

COSAFA matches

13. OR Tambo Games

14. Basil Mutual Learn-

ing Project: Student

Exchange Programme

15. Street Soccer

League finals

16. Telkom satellite

broadcast at the State

Theatre

17. National Bulls

Championships

18. Sport Day for the

Disabled

19. Completion of

Block K sport facility in

Soshanguve

20. Establishment

of two new hubs in

Tshwane

21. Presentation of

sport-related work-

shops on:

- How to establish a

club

- How to manage a

club

- Safety in sport

- Marketing sport

- HIV and sport

259

5.4.2.8 Social development


Dedicated municipal employees volunteered to present the programmes.

to train 25 000 youths in various entrepreneurial programmes. These programmes were aligned to address and reduce the indigent

Tshwane communities.


Statistical information 2006/07

No R

Nature and extent of facilities provided

- Child care (including crèches, etc) 10

- Aged care (including homes for the aged, home help) 1

Number and cost to employer of all personnel associated with each community service

function- Child care (including crèches, etc) 60 13,8 million

- Aged care (including homes for the aged, home help) 0

Total operating cost of community and social services function 23 million

Chapter 5

260



Key performance area 2005/06 2006/07 2007/08

Achieved Achieved Target Explanation of

variance

Planned targets

according to ap-

proved budget

No of essential skills development ini-

tiatives implemented in communities

in partnership with key roleplayers

such as the SETAs, and in line with

sector skills plans

1 6 1 6

Maintenance of an indigent database 2 000 46 800 52 097 The department was

awaiting the appoint-

ment of a service

provider. Tender

documents were be-

ing processed.No of indigent households evaluated Not applicable All forms received

from Finance were

evaluated.

All forms received

from Finance were

evaluated.

Not applicable

No of indigent households linked to

exit programmes

Not applicable 133 100 180

No of projects implemented for the

youth

4 6 5 Not applicable

No of projects implemented for

women



disabled



elderly



homeless

Not applicable 1 1 Not applicable

No of projects implemented for

children


No of initiatives implemented that

benefit vulnerable groups

Not applicable 15 15 20

% increase in expenditure on

programmes that benefit vulnerable

groups

Not applicable 0% 5% Few departments

responded to our

template, which made

it difficult to determine

progress on this KPI.

Not applicable

261

5.4.3 Housing


er and to implement all provincially approved subsidised hous-

tion of the provincial government at the time.

curb land invasion and manage informal settlements in or-

perform a community liaison function to ensure that de-

velopment was informed by and met the needs of the tar-

provide low-cost housing for households earning less than

destigmatise hostels by redeveloping them into family

empower communities through housing support centres

the importance of savings and by equipping them with

facilitate the provision of institutional housing in order to

subsidy funding from the provincial government and im-

plement the projects.

year:

subsidy

ployment opportunities for the unemployed in Tshwane

Appoint security companies to ensure that no land and/or

Chapter 5

262



Description 2004/05 2005/06 2006/07

Total R Total R Total R

Number and cost of all personnel associ-

ated with the provision of municipal housing

280 41 548 861

- Senior management (general manager

and managers)

7 4 224 579 7 4 550 000 5 3 058 859

- Management (deputy managers, chiefs

and assistant managers)

7 2 997 884 6 2 760 600 7 3 410 689

- Professionals (architects, consultants and

project managers)

34 10 235 736 47 15 560 500 15 4 862 095

- Fieldworkers (supervisors, foremen) - - - - - -- Office workers (clerical, administrative

and secretarial)

118 18 732 340 97 16 610 000 110 21 538 609

- Non-professional workers (drivers and

workshop assistants)

7 695 800 9 963 000 143 6 678 609

- Workers 135 10 935 427 108 6 400 000 113 8 245 550- Temporary - - - - 36 1 326 000- Contract 36 1 200 000 36 1 300 000 - -Number and total value of housing projects

planned- 2006/07 financial year Serviced stands 10 000 120 000 000 12 000 157 656 000 12000 168 000 000 Top structures 5 000 94 000 000 6 000 112 752 000 6000 112 800 000- Future years Serviced stands (completed by 2010) 150 052 1 800 624 000 150 052 2 255 131 508 150 052 2 255 131 508 Top structures (completed by 2015) 160 052 3 008 977 600 160 052 3 440 957 948 160 052 3 440 957 948Total of type, number and value of housing

provided in 2006/07

Gauteng Provincial Government (RPT) subsidies allocated directly to a regional professional team, ie

not provided for on the City of Tshwane budget- Residential stands serviced 12 729 152 748 000 20 473 527 555 706

Water

19 256

Sewer

19 376

156 609 579

263

Description 2004/05 2005/06 2006/07


- Top structures for low-cost housing 4 853 91 236 400 5 949 119 312 240 RPTs = 1 725

City of

Tshwane =

5 884

7 609

133 162 615

- People’s Housing 206 3 872 800 0 0 0 0- Hostels redeveloped (ie number of family

units developed)

226 15 820 000 320 48 000 000 360 35 629 314

- Rental units available (number of new

units developed)

2 309 - 2 312 - 2312 -

- Rental units in Schubart Park and Kruger

Park

1 182 - 1 134 - 1 134 -

Planning for institutional housing (private

funds)

Planning and

design

HCT = 767

units

- Yeast = 381

units

Planning

and design

HCT = 767

units

- Yeast =

460 units

- Planning and

design

HCT = 767

units

- Yeast = 460

unitsTotal number and value of rental received

from municipal rental units

A total of

66,96% was

received from

all units (flats,

houses, etc)

5 152 596 A total of

53,85%

was

received

from all

units (flats,

houses,

etc)

5 452 921 A total of

53,98% was

received

from all

units (flats,

houses, etc –

2 312 units)

5 919 478

Estimated backlog in no of housing units

(and cost to build them)From aerial photographs taken during

February 2005 and counted in March 2005

(number of families)

160 052 4 929 601 600 160 052 5 846 379 500 133 811 4 873 530 431

Type-of-habitat breakdown (estimates)- Number of people living in a house or

brick structure

5 - 5 - 5 -

- Number of people living in a traditional

dwelling 5 -

5 - 5 -

- Number of people living in a flat in a block

of flats

5 - 5 - 5 -

- Number of people living in a town house,

housing cluster or semi-detached group

dwelling

5 - 5 - 5 -

- Number of people living in an informal

dwelling or shack

5 - 5 - 5 -

- Number of people living in a room or

flatlet

3 - 3 - 3 -

Type and number of grants and subsidies

received

Services

and top

structures

MIG

166 966 327,11

21 284 358,00

188 250 685,11

Top structure

services

71 475 510,00

85 129 903,21

156 605 413,21

Chapter 5

264


Description 2004/05 2005/06 2006/07


- Hostel redevelopment (July 2006 to June

2007)

0 0 226 48 000 000 360 Saulsville hostels

8 835 000

Mamelodi hostels

3 336 802

- Gauteng Provincial Government (subsi-

dies allocated directly to a regional profes-

sional team, ie not provided for on the City

of Tshwane budget)

19 634 147 255 000 Services

55 863 201

Houses

155 625 386

Total

211 488 587

Services

R246 066 677

Houses

104 977 398

Hostels

16 960 000

Total

368 004 075

- North-West Provincial Government 0 0 0 0 0 0

Total operating cost of housing func-

tion (total from medium-term budget

2006/07)

- 105 596 739 - 426 112 979 - 130 636 568

(excluding top

structures)


KPA KPI Five-year programme

target

Achieved 2006/07 Planned

2006/07

Explanation of

variance

Establish informal settle-

ments as townships

Percentage of settlements

established as townships

or land development ap-

plications

By 2009, all informal set-

tlements that could be es-

tablished as townships had

to be established, and the

rest had to be established

by 2014.

Of 65 settlements that

could be established, 12

were established.

13

Provide top structures Number of top structures

provided

112 000 7 609 6 000

Develop at least 700 family

units a year at hostels

Number of completed family

units at hostels

3 500 360 366 Target not met by

6 units owing to

budget constraints

– dependent on

external funding

by Province

265

KPA KPI Five-year programme

target

Achieved 2006/07 Planned

2006/07

Explanation of

variance

Provide roads and stormwa-

ter pipes in order to formal-

ise informal settlements

Number of residential

stands provided with roads

and stormwater drainage

6 000 a year 12 450 6 000

Provide water connections

in order to formalise informal

settlements


stands provided with water

connection

112 000 19 256 10 000

Provide sewer connections

in order to formalise informal

settlements


stands provided with sewer

connection

112 000 19 376 12 000

Key performance

area

Performance during the year

and actual achievements against

targets

Actual 2004/05 Actual

2005/06

Actual

2006/07

Target

2006/07

Hostel redevelopment In Saulsville, 262 family units were devel-

oped. Redevelopment of Mamelodi hostels

proceeded in May 2005 and 98 units were

constructed in the 2006/07 financial year.

226 320 360 366

Provision of housing Residential stands serviced and top structures

built:

- Houses (structures)

5 059

5 949 7 609 6 000- Serviced stands

Water

Sewer

12 729 20 473 19 256

19 376

10 000

12 000Rental administration Fifth year of implementation of a cost-recov-

ery policy (to be implemented over a five-year

period). Collection was measured against the

fourth increased rental amount.

66,96%

Fourth phase of

full cost recovery

was implementted

to run concurrently

with the financial

year. Rentals

increased on

1 July 2006.

Fifth phase of full

cost recovery was

implementted to

run concurrently

with the financial

year. Rentals

increased on

1 July 2007.

Full cost recovery

of rentals was

achieved by July

2007.

Chapter 5

266


Key performance

area

Performance during the year

and actual achievements against

targets

Actual 2004/05 Actual

2005/06

Actual

2006/07

Target

2006/07

Land invasion manage-

ment

For the Municipality to address the current

housing backlog of 133 070 families by

delivering that number of serviced stands by

the year 2010 and top structures by the year

2015, the influx of people to the city had to be

measured and controlled. Counts from aerial

photos were completed in February 2007.

Continued to im-

plement policy and

did socio-economic

survey

104 509 shacks

marked

39 303 shacks

registered

289 500 shacks

data captured

26 982 shacks

marked

12 059

shacks registered

13 339

shacks data

captured

2 600

shacks marked

10 000

shacks registered

13 000

shacks data

captured

Institutional housing In order to contribute to the integration and

densification of the city, the Housing Divi-

sion facilitated and provided support for the

initiatives of all social housing institutions in

Tshwane.

Planning and

design:

HCT = 767 units;

Yeast = 381 units

0 0 0

5.4.4 Public safety

5.4.4.1 Metropolitan policing


made to ensure community involvement and to apply the City of

of all other departments in creating a safer city for all.

objectives:

Crime prevention

players

Decentralisation of policing to eight regions to ensure ac-

licing methods to ensure equitable services

meter system and hand-held law enforcement equipment

267


Statistical details 2005/06 2006/07

No R ‘000 No R

Number and cost to employer of all

personnel associated with policing and

traffic control

- Professional workers (senior manage-

ment)

111 73 738 827 14 1 388 304,60

- Fieldworkers (detectives/supervisors) 35 275 49 016 308

- Office workers (clerical/administrative) 336 437 13 123 713,06

- Non-professional workers (visible street

policing)

986 248 944 775 1025 46 942 294

- Volunteer workers 0 0 <cost>

- Temporary workers 0 0 <cost>

- Contract workers 179 14 588 062 129 1 454 469,84Note: Total number to be calculated on full-time equivalent (FTE) basis, and total cost to include total salary package. Office workers included desk-bound

police and traffic officers; non-professional workers included aides.Total number of call-outs attended Not available 12,242Average response time to call-outs Not available 2 minutesTotal number of targeted violations, eg

traffic offences

Camera

565 073

Camera

631 966Section 341

165 811

Section 341

185 843

Section 56

133 92

Section 56

122 140Type and number of grants and subsidies

received

Licensing services:

Refund: Motor vehicle

1 200 000 Licensing services:

Refund: Motor vehicle

44 940 000

Government grants:

Safety services

756 565

Total operating cost of police and traffic

function

375 949 265 405 448 794

Chapter 5


Key performance

area

2005/06 2006/07Achieved Achieved

No R No RRoad Policing Operations

and Auxiliary Services

rendered specialised func-

tions and collaborated

with internal and external

partners (eg the regions,

the province and RTMC),

with the primary focus on

enhancing road safety.

The City of Tshwane had

a mandate to enforce the

National Road Traffic Act

and applicable by-laws to

regulate traffic in order to

enhance road safety in

Tshwane.

14% reduction in fatal

accidents

23 039 326 Reduction in fatalities -

per 10 000 registered

vehicles: 12,6%

Current death rate per -

10 000 registered vehi-

cles: 3,08;

Reduction through the -

following interventions:

Freeway patrol: 600

prosecutions;

Speed law enforcement:

62 892 prosecutions;

Public vehicle law en-

forcement and coordina-

tion: 950 prosecutions;

Events management

and coordination: 1 284

events;

Internal and external op-

erations coordinated: 184

internal and 37 external;

Escort of local and

international dignitaries:

110 days:

Road infrastructure

interventions and actions:

6 067

Overload law enforce-

ment: 596 prosecutions.

27 678 000

269

2007/08Target Explanation of variance Planned targets as per approved budget

No R No RReduction of fatal acci-

dents per 10 000 registered

vehicles: 5% a year

26 512 000 All road-policing interventions and

operations in Tshwane (eg speed

law enforcement, overload control,

road blocks, drink-and-drive road

blocks, Arrive Alive Campaign

and the Pedestrian in Traffic cam-

paigns) were aimed at reducing

fatalities on Tshwane’s roads.

The value of every life lost is R1m,

according to the CSIR. This loss in

Tshwane amounted to R264m in

2005/06 and R245m in 2006/07.

The reduction amounted to R19m.

The estimated damage to

Tshwane’s roads amounted to

R63m a year.

8% a year.

Key issues for 2008/09:

1. Reduce accidents by a further

8% per 10 000 registered

vehicles

2. Reduce the speed offences rate

by at least 2%

3. Reduce overloading of goods

vehicles by at least 5%

4. 1 00% success in events

coordination

5. 100% success in coordinating

internal and external operations

29 096 924

Chapter 5

270


Key performance

area

2005/06 2006/07Achieved Achieved

No R No RPreventing crime -

through environmental design and redesign, in particular by applying sound design strate-gies and management principles to the physical environmentPreventing crime through -

social crime prevention by developing, coordinat-ing and integrating projects and programmes based on a contributor and causal factor analy-sis, research, community needs assessments and continuous liaison with internal departments and government and non-government institutionsEducating the community -

and creating awareness of crime and crime preventionCarrying out the man--

dates of the White Paper for Safety and Security, national, provincial and local crime preven-tion strategies and the Tshwane Safer City Policy

1. Environmental design

and re-design interven-

tions: 351

2. Specialised crime

prevention operations:

257

3. Social crime prevention

interventions: 186

12 642 400 1. Environmental design

and redesign interven-

tions: 305

2. Specialised crime pre-

vention operations: 214

3. Social crime prevention

interventions: 232

14 309 700

By-law policing in the City

of Tshwane was done by

the centralised By-law

Policing Directorate, which

used a regionalised model.

By-law policing was divided

into (i) the operational

coordination of internal and

external by-law policing

activities and (ii) strategic

processes such as formu-

lating and administering

by-law policing policies,

procedures and strategies,

and engineering by-laws.

Operations (jointly by BLP

Directorate and Regional

Policing): 160

Full needs assessment of

street-parking facilities in

the City of Tshwane

8 162 982 Annual target (calculated

cumulatively from July

2006) achieved: 34%

Notices actually issued:

24 291

4 149 100

271

2007/08Target Explanation of variance Planned targets as per approved budget

No R No ROne % below the Gauteng

average decrease in

housebreaking and

theft of motor vehicles by

30 June 2007, through:

1. projects, programmes

and education and aware-

ness interventions: 200

2. law enforcement and

coordination of operations

(own/joint): 200

3. environmental design

and redesign interventions

and designing out crime at

priority locations/hotspots:

200

4. joint operations to fight

crime in partnership with

key strategic partners such

as the SAPS and business:

200

13 996 400 Targets were exceeded by far, as

partnerships were formed and joint

ventures were embarked on.

1. Internal policing operations

contributing to the 1% decrease in

reported crime levels per type of

crime: 392

2. Social crime prevention inter-

ventions (projects, programmes)

contributing to the 1% decrease in

reported crime levels per type of

crime: 200

3. Environmental design and

redesign interventions contributing

to the 1% decrease in reported

crime levels per type of crime: 200

4. Joint operations to fight crime

with key strategic partners (SAPS

and business): 392

16 527 200

Notices issued for by-law

transgressions by 30 June

2007: 90% increase

6 672 300 Transgressors were warned

verbally.

Few resources in regional policing,

and these were used for other

priorities.

New officers needed more

exposure.

Community first given an opportu-

nity to rectify; TRAFMAN system

did not allow for capturing hereof.

1. Operations to reduce by-law

transgressions: 300

2. By-law complaints attended

to: 7%

3. Notices issued for by-law

transgressions: 22 479

6 519 800

Chapter 5

272


5.4.4.2 Emergency management services


ices Department were directly related to its core business:

-

To render a disaster management service -

To provide an integrated and inclusive support service-

under review:

ted to the Mayoral Committee for approval.

Tshwane was developed and submitted to the Mayoral

Committee for approval and permission to commence

with the establishment of interdepartmental planning clus-

tingency plans.

City of Tshwane.

(b) Analysis of the emergency management function

Jul 2005 – Jun

2006

Jul 2006 – Jun

2007

Jul 2007 – Oct

2008

Total number of call-outs attended by fire brigade (fires) 4 880 4 792 1 374Average response time to fire brigade call-outs (fires)Total number of call-outs attended by rescue services 7 327 7 915 2 008Average response time to rescue call-outs Total number of call-outs attended by special services 738 652 174Average response time to rescue call-outs Total number and type of emergencies leading to a loss of life or disasterType and number of grants and subsidies received


KPA KPI Achieved 2005/06 Target

2006/07

Achieved 2006/07 Explanation of

variance or steps

to improve per-

formance

Use local vendors to

increase participation

and broaden the con-

tribution to growing the

city’s economy through

the development of

SMMEs, cooperatives,

the informal sector and

black people, women

and the youth.

Percentage of local

vendors used by the

department

Not measured 22% 37.65% Since some EMSD

equipment was special-

ised, local vendors could

often not be used.

Attend to requests for

disaster management

information.

Percentage of requests

for disaster risk man-

agement information

attended to annually

95% 100%

273

KPA KPI Achieved 2005/06 Target

2006/07

Achieved 2006/07 Explanation of

variance or steps

to improve per-

formance

Attend to all fire

requests.

Percentage of fire

incidents attended to on

request

87% 100% or 4 792 fire

requests attended to

Conduct 8 300 urban

development control

activities a year by 2011.

No of urban develop-

ment control activities

concluded

8 000 13 872

Conduct 2 750 hazard-

ous substance activities

a year by 2011.

No of hazardous

substance activities

concluded

2 650 3 785

Attend to 90% of

rescue, specialised and

humanitarian requests

by 2009/10.

Percentage of special-

ised and humanitarian

incidents attended to on

request

85% 100% or 8 567, of which

2 181 were rescues

5.4.5 Waste management


The Waste Management Division provided and managed refuse

ply with applicable legislation. Waste Management rendered a


Details 2005/06 2006/07

Total R Total R

Number of staff associated with refuse removal and their

cost to the Municipality

- Professional (engineers,

consultants) - Fieldworkers (supervisors/foremen) 66 4 620 000 66 4 827 622

- Office workers (clerical/administrative) 66 6 600 000 65 6 907 622

- Non-professional workers (blue collar, outside workforce) 465 13 031 208 457 12 678 830

- Temporary workers -

- Contract workers 1 206 50 524 341 1 206 51 534 828

Number of households receiving regular refuse removal

services, and frequency and cost of service

- Removed by City of Tshwane at least once a week 721 790 15 376 243 731 552 8 818 416

- Removed by Municipality less often 44 162 9 252 822 45 344

- Communal refuse dump N/a N/a

- Own refuse dump N/a N/a

- No rubbish disposal N/a N/a

Total and projected tonnage of all refuse disposed

- Domestic/commercial 2 335 243 46 396 874 1 856 51844 36 877 564

Chapter 5

274


Details 2005/06 2006/07

Total R Total R

- Garden 268 552 8 037 986 1657 252 6 390 198

Total number of refuse disposal sites

- Domestic/commercial 9 46 386 874 9 36 877 564

- Garden 11 8 037 986 11 6 390 198

Anticipated expansion of refuse removal service

- Domestic/commercial

(number of clients)

439 012 21 599 380 336 580 17 553 337

- Garden (number of clients) N/a N/a

Free basic service

- Quantity (number of households affected) 90 000 1 656 000 90 000 1 656 000

- Quantum (value to each

household)

– 18 – 40 18 – 40

Total operating cost of Waste Management Division 259 309 858 236 072 614



and actual achievements

against targets

Actual

2005/06

Actual

2006/07

(as at 31 March 2007)Landfill management Buy-back centres operated 3 3

Weighbridges operated 6 6

Refuse collection Waste disposed of and treated (tons) 2 335 243 1 651 252

Households

Refuse collection for unproclaimed

areas (sites)

28 000 90 000

Contract cleaning of public areas Community-based contracts 28 27

(1 cancellation due to non-perform-

ance)Waste removed (tons a year) 48 000 317 000

Cleaning of vacant stands Cutting of grass 38 800 000 m² 26 676 653 m²

R3 999 338

Removal of illegal dumping 499 968 m³ 374 976 m³

R5 784 004,80

Marketing and auditing Increased number of service points

Income generated

13 424

R21 599 379,72

9 762

R13 192 287,84

275

TSHWANE LANDFILL SITES ANNUAL REPORT FOR 2006/07: WASTE RECEIVED PER TON

SITE JUL 2006 AUG SEP OCT NOV DEC JAN-2007 FEB MAR APR MAY JUN TOTALS

Derdepoort 54 266 43 771 50 936 18 509 16 354 12 293 17 240 9 168 11 378 5 908 4 748 7 376 251 947

Garstkloof 35 009 33 112 26 843 18 848 13 394 14 756 17 866 14 790 14 943 19 544 8 816 15 809 233 730

Ga-Rankuwa 17 067 9 708 16 374 8 838 10 272 10 625 9 748 8 627 9 014 9 066 7 253 10 369 126 961

Hatherley 22 829 28 749 28 434 19 417 24 722 23 370 23 096 25 548 32 365 21 262 8 618 29 644 288 054

Kwaggasrand 29 306 21 391 29 368 22 963 21 183 28 889 31 929 22 390 29 474 23 356 20 282 30 453 310 984

Onderstepoort 75 185 60 734 61 937 49 106 45 408 50 596 55 773 50 032 55 204 53 963 49 186 76 397 683 521

Soshanguve 16 233 13 752 19 361 18 245 15 982 15 143 18 215 17 552 17 889 13 341 13 650 18 310 197 673

Temba 6 520 5 164 5 601 3 742 2 997 2 518 2 903 2 376 2 678 2 107 1 832 2 893 41 331

Valhalla 13 630 12 965 13 602 17 876 20 636 19 449 18 463 27 558 38 672 30 017 23 412 31 359 267 639

SUBTOTAL 270 045 229 346 252 456 177 544 170 948 177 639 195 233 178 041 211 617 178 564 137 797 222 610 2 401 840

SITE 2001/02

Ton

2002/03

Ton

2003/04

Ton

2004/05

Ton

2005/06

Ton

2006/07

Ton

2007/08

Kg

Derdepoort 199 823 176 724 475 618 413 158 431 573 251 947 42 798 818

Garstkloof 551 459 229 080 695 481 315 366 267 721 233 730 54 739 900

Ga-Rankuwa 146 467 112 356 79 009 42 248 96 077 126 961 38 554 000

Hatherley 127 892 143 700 157 719 183 646 230 953 288 054 83 812 420

Kwaggasrand 134 834 169 092 366 416 405 663 403 755 310 984 123 750 135

Onderstepoort 151 046 209 280 335 824 331 556 473 511 683 521 262 453 726

Soshanguve 85 047 92 964 113 159 97 478 96 995 197 673 61 949 000

Temba 154 512 52 368 25 872 22 871 63 556 41 331 9 542 000

Valhalla 441 168 212 916 494 085 363 490 271 102 267 639 121 686 000

SUBTOTAL 1 992 248 1 398 480 2 743 183 2 175 476 2335243 2 401 840 799 285 999

5.4.6 Waste water management


Waste water management included the operation and main-

tenance of municipal sewerage services and the facilitation of

development in this regard. The sewerage functions of the City

of Tshwane included:

Ongoing assistance to facilitate new developments and

ensure that sewerage infrastructure was installed in ac-

poor staff situation impacted negatively on this responsi-

bility and the section was unable to cope with the increas-

Comprehensive analysis of the systems to proactively

Chapter 5

276


Continuous management and control to ensure the avail-

ability of service.

to stormwater management and drainage systems. The follow-

ing waste-water management functions were performed in the

Treatment of waste water in line with the standards set by

Ongoing assistance to ensure that new infrastructure was

developed and waste water treatment infrastructure was

built in accordance with the latest technology and speci-

Chemical and bacteriological analyses (according to the

-

-

-

-

Continuous management and control to ensure the op--

timum availability and performance of the waste water



Number and cost to employer of all staff associated with

sewerage functions:

No R (000s) No R (000s)

- Professionals (engineers/consultants) 11 R2 650 16 R 35 000

- Field workers (supervisors/foremen) 52 R13 500 44

- Office workers (clerical/administrative) 16 R2 770 15

- Non-professional workers (blue collar, outside workforce) 150 R12 700 148

- Temporary workers 3 R280 4

- Contract workers 9 R630 18

Note: Total number to be calculated on full-time equivalent

(FTE) basis; total cost to include total salary package.

241 R32 538 245 R 35 000

Number of staff associated with the waste water treatment

function and their cost to the Municipality:

- Legislators, senior officials and managers 4 4

- Technicians and associated professionals 14 24

- Clerks 5 5

- Plant and machine operators and assemblers 35 25

- Elementary workers 171 186

Note: Total number to be calculated on full-time equivalent

(FTE) basis; total cost to include total salary package.

229 R37 million 244 R32,4 million

Number of households with sewerage services, and type

and cost of service:

No R No R

- Flush toilet (connected to sewerage system) 370 00045 R56,000 000 376 000 R 60 000 000

- Flush toilet (with septic tank) N/a <cost>

- Chemical toilet N/a <cost>

277


- Pit latrine with ventilation 17 000 On-site: Owners are

responsible

8700 On-site: Owners are

responsible

- Pit latrine without ventilation (includes informal areas) 93 000 On-site: Owners are

responsible

174 612 On-site: Owners are

responsible

- Bucket latrine N/a <cost>

- No toilet provision N/a <cost>

Details of other types of services

Anticipated expansion of sewerage (number of house-

holds):

6 000 90 million 7 000 R95 million

- Flush/chemical toilet <total> <cost>

- Pit latrine 7 000 R 95 000

- Bucket latrine <total> <cost>

- No toilet provision <total> <cost>

Estimated backlogs (excluding informal areas) 96 426 560 million 38 218 R550 million

Total number of households anticipated to benefit, and total

additional operating cost per year to the City of Tshwane

The Municipality was mandated to –

Replace, upgrade or construct waste water treatment

works.

20 Mℓ per day R39,6 million 20 Mℓ per day R20 million

Waste water treatment works and the design capacity of

each:

Rooiwal 245 Mℓ per day 245 Mℓ per day

Daspoort 60 Mℓ per day 60 Mℓ per day

Baviaanspoort 58 Mℓ per day 58 Mℓ per day

Zeekoegat 30 Mℓ per day 30 Mℓ per day

Sunderland Ridge 45 Mℓ per day 45 Mℓ per day

Sandspruit 20 Mℓ per day 20 Mℓ per day

Rietgat 27 Mℓ per day 27 Mℓ per day

Klipgat 55 Mℓ per day 55 Mℓ per day

Temba 12,5 Mℓ per day 12,5 Mℓ per day

Babelegi 4,7 Mℓ per day 4,7 Mℓ per day

Anticipated expansion of waste water treatment works 20 Mℓ per day R139 million 20 Mℓ per day R139 million

Effluent standards set by the Department of Water Affairs

and Forestry for discharges into a river- pH

- Electrical conductivity

- Nitrate (as N) ℓ ℓ- Free and saline ammonia (as N) ℓ ℓ- Chemical oxygen demand (as O) ℓ ℓ- Orthophosphate (as P) ℓ ℓ- Suspended solids ℓ ℓ- Free residual chloride (as CI) ℓ ℓ

Chapter 5



- Faecal coliforms

CFU/100 mℓ CFU/100 mℓFree basic service:

- Quantity (number of households affected) 475 195 100 million 351 000 R91 200

- Quantum (value to each household) R260

Detail Total Cost

Details on how many households receive the free basic service, the average value per household and the level of service

Total operating cost of waste water treatment function R114,6 million R122 million

Total operating cost of sewerage function R132,3 million R145 000


Key performance

area

Performance during the year and actual

achievements against targets

Actual

2005/06

Actual 2006/07 Target

2006/08Private blockage remov-

als

Private sewer blockage complaints were dealt with on

a daily basis (during normal working hours and on an

overtime basis).

4 192 complaints

(R1,75 million)

3 085 complaints

(R1 021 million)

Dependent

on complaints

receivedMunicipal blockage

removals

Municipal sewer blockage complaints were dealt with

on a daily basis (during normal working hours and on

an overtime basis).

18 263 complaints

R11,63 million)

16 568 complaints

(R9 243 million)

Dependent

on complaints

received

Logistical, fleet and

stores management

The required management and control functions

were performed to ensure the availability of vehicles,

machinery, equipment, materials, etc.

406 work orders

(R1,135 million)

Material costs: R2,378

million

255 work orders R2 430

million (works and orders

and material)

R1 966 million

System development New developments were managed and facilitated when required, but the staff situation had a negative effect on ability to fulfil

this function.Upgrading and replace-

ment of worn-out sewers

The existing waste water collection system was analysed to proactively identify worn-out infrastructure, problems and bottle-

necks in order to upgrade or replace pipes in good time. Replacement and upgrading projects were evaluated and processed

in terms of urgency and the availability of funds. The current inspection contract was focused on the northern and southern

areas of Tshwane, with a view to future rehabilitation contracts there. The latest contract focused on rehabilitation of sewers in

the southern area (Centurion, where weathering dolomite was an issue) and CCTV inspections and condition assessments in

the northern areas.

279

5.4.7 Road transport

5.4.7.1 Transport planning


namely:

Transport Operations Development

Strategic objectives

developing technical tools to ensure a fully integrated and

sustainable transport system for the City of Tshwane and

leasing new buses for Tshwane Transport according to a

managing and maintaining public transport facilities.

Key issues

important guidelines for the provision of an integrated public

mation of the entire public transport system of Tshwane.

urban mobility through the provision of segregated right-of-way

the performance and amenity characteristics of a modern rail-

of the cost.

via Menlyn into Mamelodi. The Mabopane area suffers from

Thousands of commuters face serious delays each morning

fer in the city centre.

Chapter 5


(b) Key performance areas

Key performance area Performance during the year,

performance targets against actual

achievement, and plans to improve

performance

2005/06 2006/07 Target

Public transport operations

development

Strategic Public Transport Network: Document

completed and utilised in the implementation of

BRT Phase 1

Integrated Transport Plan (ITP) approved in

January 2007 and to be implemented

Planning for the overall review to be done in

2007/08

N/a

Public transport facilities

development

Regular updating of list of formal and informal

public transport facilities

Transport economic research

and funding

Completion of scoping study for BRT

Funds received from the Department of Trade

and the French Development Agency

Introduction of Big Tree

system resulting in a

55% saving on travel

time on the Moloto/

Pretoria route

Reduction in time

to travel between

home and work in

line with Gauteng

targets, and in

partnership with

key roleplayers

Determining

baseline and

targets in line

with policyTransport planning and informa-

tion systems

Development of a strategic public transport

plan

Report submitted to the

Council

100% complete

by June 2007

Maintainence and cleaning of

all public transport facilities 47 public transport facilities maintained

47 48

5.4.7.2 Public buses


The strategic objectives of this function were to:

expand services to the currently unserved areas in

Tshwane.

and 2009/10.

The public bus service responsibilities of the City of Tshwane

included the following:

Transportation of residents

The City of Tshwane was considering alternative institutional ar-



Total

No

Cost

R

Total

No

Target

R

Cost

R

1. Number and cost to employer of all public

buses serving staff

464 71 379 361 334 52 859 691

- Professional workers (engineers/consult-

ants)

2

- Fieldworkers (supervisors/foremen, includ-

ing inspectors)

24

- Office workers (clerical/administrative) 9- Non-professional workers (blue collar,

outside workforce, including drivers)

272

- Temporary workers 27- Contract workers 0Note: Total number to be calculated on full-time equivalent (FTE) basis; total cost to include total salary package.2. Number and total operating cost of public

buses serving residents

109 370 450

- Aged less than 10 years 0 0- Aged 10 years or older 296 296 33 647 802 49 530 000Note: This figure should be taken from the plant replacement schedule.3. Total kilometres of all bus travelling 8 200 000 8 369 123Note: Total number of kilometres travelled by entire fleet for the year4. Total number of passengers 13 100 000 14 279 126 Note: Total number of paying passengers

travelling per year

Chapter 5



Total

No

Cost

R

Total

No

Target

R

Cost

R

5. Total number of bus-related complaints 1 663 40 a year Note: Total number of complaints received

from paying passengers per year6. Type and number of grants and subsidies

receivedContribution from the Municipal Tax Fund 24 387 700 24 000 000Note: Total value of specific bus transport

grants actually received during year to be

recorded over five quarters (Apr to Jun 2006,

Jul to Sep 2006, Oct to Dec 2006, Jan to Mar

2007, Apr to Jun 2007)7. Total operating cost of public bus service 149 643 171 83 437 690



against actual achievement, and plans to improve

performance

Current Target

Investigate the expansion of

the municipal bus service to

the northern/southern region

of Tshwane

New routes identified and services to be commissioned after obtaining

permits for the new routes

Submission made to

Department of Trade

Mar 2008

Introduce a fleet management

system

Three-phased framework set up, with the first phase being implemented

and evaluated

Implementation and

evaluation of first phase

Mar 2008

Review the organisational

structure to meet the needs

and goals of a separate entity

Approved structure realigned with best practices of a separate entity Review of purpose of

portfolio

Mar 2008

Acquire 100 new buses on a

full maintenance lease

Supplier was appointed; first batch of 16 buses was to be delivered in

March 2008

Implementation of

agreed objectives of the

tender

Mar 2008

Introduce electronic fare

collection

Tender document submitted to Bid Specification Committee Awaiting tender

advertisement in Nov/

Dec 2007

Dec 2007

Rent buses

5.4.8 Roads


ment.

The division consisted of the following sections:

sponsible for the planning and management of the roads

and stormwater infrastructure of the City of Tshwane

water infrastructure to support and facilitate economic

growth

roads and stormwater infrastructure maintainable and

serviceable through proper management systems

safety

management of projects

plan for and provide roads and stormwater infrastructure

to support and facilitate economic growth and to promote

provide the management and support services needed.

year:

Maintaining existing infrastructure

Optimising the use of local labour in labour-intensive ini-

tiatives

growth demands

Optimising the implementation of contracts with the aid of

lines and learnerships

Optimising the use of local vendors

Creating short-term jobs in construction and maintenance

trian safety measures to ensure safety on our roads

services

ings

procedures

norms and standards

Applying sound human resource management

Applying integrated performance management principles

and reporting

Chapter 5





road maintenance and construction

No R No R

- Professional workers (engineers/consultants) 134

142 196 345

183 150 544 000

- Fieldworkers (supervisors/foremen) 106 212

- Office workers (clerical/administrative) 202 84

- Non-professional workers (blue collar, outside work-

force)

532 463

- Temporary workers 1

- Contract workers 0

Note: Total number to be calculated on full-time equiva-

lent (FTE) basis; total cost to include total salary package

974 142 196 345 954 162 078 953

No

<km>

R

<cost>

No

<km>

R

<cost>

Total number, kilometres and total value of road projects

planned and current

36 112,92 million 34 101,6 million

Upgrading of roads (number) 33 98,92 million 8 23,84 million

New collector and access roads (number) 3 14,million 26 77,76 million

Feasibility studies and/or detailed designs of roads

(number)

22 projects 3,2 million 8 6,5 million

- New bituminised (km) (intermediate standard) 14 1 2 617 26 7 6 400

- Existing resurfaced (km) 294 31 444 166 8 35 028

- New gravel (km) 161 14 483 106 8 16 020

- Existing re-sheeted (number)

Total kilometres and maintenance cost of existing roads

provided

R

- Tar (km) 5 333 32 713 5 536 23 800

- Block pavement (km) 64 1 69

- Concrete and other types of surface (km) 18 1 18

- Gravel (km) 2 276 15 994 2 240 11 700

- Road markings repainted (km) 387 km 7,0 million 277 km 5,17 m

- Traffic signs replaced/installed (number of signs) 13 681 10,7 million 12606 7,38 m

Note: If other types of road were provided, please provide

details.

Average frequency and cost of re-tarring, re-sheeting

roads

R

- Surfaced 1:19 years 84 623/km 1:30 years 210 000/km

- Gravel 1:5 years 50 357/km 1:20 years 150 000/km

Note: Based on maintenance records

Estimated backlog in number of roads, showing km and

capital cost

R (000s)

- Surfaced (km) 2 276 7 030 000 2 265 7 000 000

- Gravel (km) 1 747 262 050 1 720 300 000

Total 4 023 7 292 050 3 985 km 7 300 000


Detail Total Cost

Note: Total number should appear in IDP, and cost in

future budgeted road construction programme.

Type and number of grants and subsidies received No R (000s) No R (000s)

MIG 13 (budget

R67 449 642)

66 274 000 spent 10 (budget

R58 000 000)

50 626 000 spent

Consolidated Municipal Infrastructure Programme 10 projects 58 million 25 projects 58 million

Gauteng Department of Public Transport, Roads and

Works (Gautrans)

2 projects 4 3 million None

South African National Roads Agency None None None

Public Transport Infrastructure and Systems Fund (PTIF)

(conditional grant from the Department of Transport)

5 3 million None

Public Works Department 1 project 1 project 0 7 million

Total operating cost of road construction and mainte-

nance (operational teams, depots, vehicles, machinery

and equipment of the Operational Services Section)

249 million 256 million

Total operating cost of road construction and mainte-

nance

Total opex and

capex

Opex 410 612

Capex 229 009

Total opex and capex Opex 421 423

Capex 251 795

Total 639 621 Total 673 218


Key performance area Achieved

(2005/06)

Achieved

2006/07

Target

2006/07

Explanation of

variance

Target

2007/08

Eradication of road backlogs by upgrading, sealing

and construction

49,9 km 40,46 km 41,7 km Work that was planned for

Block HH in Soshanguve did

not materialise, due to the

contractor’s lack of capacity.

88,1 km

Eradication of stormwater backlogs 63,71 km 39,7 km 25,7 km More stormwater systems

were constructed than antici-

pated, especially in Mabopane

Block C, New Eersterust and

Ramotse.

81,2 Km

Number of short-term jobs created (1 job = 240

person days)

730 832 502 The number of locals on reac-

tive maintenance exceeded

the target.

890

Number of contracts implemented through the

EPWP (with EPWP learnerships or according to

EPWP guidelines) Not measured

37 36 Target achieved 59

Number of road safety devices provided to enhance

the safety of roads (speed humps, raised pedes-

trian crossings, mini circles, chokers, etc)

194 277 87 The actual measurement was

inclusive of all elements of the

devices, although these were

not envisaged during planning.

250

Chapter 5


5.4.9 Water


and water storage and distribution.

The City of Tshwane was mandated to:

and conduct chemical analyses on water samples in terms

ensure the operation and maintenance of water distribu-

investigate the implementation and optimisation of more

The strategic objectives regarding water were the following:

Accelerate higher and shared economic growth and de-

velopment

able communities

ice

institutional transformation with capacity to execute the

mandate of the institution

tional targets

policy

with best practice




water distribution

No R(000’s) No R (000s)

- Professional workers (engineers/consultants) 22 19 R 54,400

- Fieldworkers (supervisors/foremen) 17 22

- Office workers (clerical/administrative) 15 14

- Non-professional workers (blue collar, outside workforce) 274 254

- Temporary workers 4 5

- Contract workers 3 2

Note: Total number calculated on a full-time equivalent

(FTE) basis; total cost included total salary package.

335 R48, 826 316 R 54,400

Total volume and cost of bulk water purchases in kilolitre

and rand, by category of consumer

Mℓ per day R per Mℓ Mℓ per day R per Mℓ

Total for all sources 263 162 Mℓ 2,77 per kℓ 771,84 2,94 per kℓ

- Category 1 Rand Water (megalitre per day) 574,314 2 940

- Category 2 Magalies Water 9,53 3 000

- Category 3 Rietvlei (internal source) 39 1 050

- Category 4 Fountains and boreholes (internal source) 59 1 050

- Category 5 Temba (internal source) 47,39 2 936

- Category 6 Roodeplaat (internal source) 49,8 2 936

Total volume and receipts for bulk water sales in kilolitre

and rand, by category of consumer

R (000s) R (000s)

All categories 163 633 Mℓ 907 890 197 692 1 047 000

Total year-to-date water losses in kilolitre and rand R (000s)

Water losses amounted to 27,8% of total volume supplied,

ie 771,84 megalitre per day.

19% of total volume

supplied

1 774 214,57 Mℓ per day 1 700

Number of households with water service, and type and

cost of service

No R(000’s) No R (000s)

- Piped water inside dwelling 388 419 R 29 000 396 419

- Piped water inside yard

- Piped water on community stand: distance < 200 m from

dwelling (including informal settlements)

97 000 18 000 109 206

- Piped water on community stand: distance > 200 m from

dwelling

27 000 1 800 55 968 (including

informal areas)

Note: If other types of service were available, please

provide details.

Number and cost of new connections No R(000’s) No R (000s)

TOTAL 5 170 10 000 5 550 12 000

Number and cost of disconnections and reconnections R (000s)

Restricted supply 39 080 9 700 62 806 17 800

Reconnections 14 733 24 514

Number and total value of planned and current water

projects

R (000s)

- Current (financial year after year reported on) (2007/08) 12 38 000 35 335 000

- Planned (future years) (2008/09) 24 284 000

Note: Provide total project and project value as per initial or

revised budget.

Chapter 5




water distribution

No R(000’s) No R (000s)

Anticipated expansion of water service

- Piped water inside dwelling 73 000 21 000 80 000 30 000

Note: Provide total number of households anticipated to

benefit and total additional operating cost per year to the

City of Tshwane

Estimated backlog in number and cost to provide water

connection

No R(000’s) No R (000s)

- Piped water inside dwelling 27 000 301 000 20 263 263 000

- Piped water inside yard

- Piped water on community stand, distance < 200 m from

dwellingTOTAL 20 26346

Note: Total number should appear in IDP, and cost in future

budgeted capital housing programmes.

Free basic services

- Quantity (number of households affected) 539 772 120 000 391 227 138 800

- Quantum (value to each household): 6 kℓ a month at

R2 936 per kℓ6 kl 120 000 6 kl 172,12

Note: Provide details of how many households received

free basic services, and the average value it meant per

household. Describe in detail the level of the services

provided.Type and number of grants and subsidies received R (000s) R (000s)

Provincial grants 1 12 000 4 25 000

MIG 4 11 053 14 79 200

Note: Total value of specific water grants actually received

during the year to be recorded over five quarters (April to

Jun 2006, Jul to Sep 2006, Oct to Dec 2006, Jan to Mar

2007 and Apr to Jun 2007Total repairs and maintenance cost of water distribution 97 51 million 97,8 million

Total income (water and sanitation) 944 470 000

1 456 millionTotal expenditure (water and sanitation) 726 332 000

1 253 millionSurplus (water and sanitation) 218 136 000

211 million

Total operating cost of water distribution 97 800

46. The decrease is due to recycling activities.


Key performance area Achieved 2005/06 Actual for 2006/07

Actual performance achieved over the financial year, and the

variance between performance planned and actual performance,

providing an explanation of the variance. Also provide details of any

improvements planned for the next year.

No R No R

Operating, monitoring, maintaining and repairing bulk water systems 114 25,1 million 115 25,58 million

Number of bacteriological and chemical tests a day at internal bulk

water sources

330 tests a

day

1,15 million 350 tests

a day

1,20 million

Length of bulk supply pipelines replaced and installed (km) 5,38 km 12,5 million 11,566 km 46 million

Length of redundant pipelines in the network replaced (km) 40,2 km 35,56 km

Length of pipelines installed to extend the network into new areas

(km)

22,2 km 44,41 km

Number of new metered water connections 5 170 5 550

Water purification (daily)

Rietvlei 41,88

Mℓ/day

R1,03/kℓ 41,90 Mℓ/d R0,99/kℓ

Temba 45,69

Mℓ/day

R2,77/kℓ 47,03 Mℓ/d R2 936/kℓ

Roodeplaat 51,84

Mℓ/day

R2,77/kℓ 50,15 Mℓ/d R2 936/kℓ

Maintaining, replacing and repairing defective components (bulk water and water distribution)

Replacing/upgrading pump stations 1 290 000

Upgrading of reservoir inlet/outlet systems 1 3,09 million

Replacing, repairing and calibrating telemetry and measuring equip-

ment

1 360 items 1,5 million Telemetry

operation on

contract

2,2 million/year

Annual average cost of metering 344 779

connections

20,5 million 349 912 22,5 million

Annual average maintenance cost of networks 35 396

incidents

(9 550 km)

73,3 million 31 779

incidents

75,4 million

Replacing redundant pipe networks 40,2 km 23 million 36,6 km 27,2 million

Extending networks into new areas 22,2 km 4,2 million 41,65 km 19,2 million

Supplying water to informal areas (piped) 1 216 Mℓ 5,04 million 3 041 Mℓ 9,1 million

Chapter 5

290


5.4.10 Electricity

5.4.10.1 Distribution


The electricity purchase and distribution functions of the City

of Tshwane included the provision of electricity and alternative

energy to the residents of Tshwane and other areas in terms of

these services excluded all Tshwane areas that were directly

two divisions:

The strategic objectives of the department were the following:

dress new needs

Target procurement programmes that support broad-

development

to the indigent

Consolidate the consumer base and support maximum

revenue collection

consultation with employees/representatives and partici-

pation in and implementation of programmes that promote

equity and gender representation

tricity connections to end users

Maintenance of electricity generation and distribution in-

frastructure to ensure reliable and continued supply

businesses and industry



Number and cost to employer of all staff

associated with electricity distribution

No R (000s) No R (000s)

- Professional workers (engineers/consult-

ants)

184 402 007

- Fieldworkers (supervisors/foremen) 172

- Office workers (clerical/administrative) 71

- Non-professional workers (blue collar,

outside workforce)

1 338

- Temporary workers

- Contract workers 849 45 600

TOTAL 1 880 340 324 1 879 378 386

291


Note: Total number to be calculated on full-time equivalent (FTE) basis; total cost to include total salary package.

Total quantity and cost of bulk electricity

purchases in kilowatt hours and rand, by

category of consumer

No R (000s) No R (000s)

- Residential 3 853 927 548 708 916

- Commercial 1 288 041 432 208 118

- Industrial 4 520 055 798 540 029

- Other

TOTAL 9146,8 GWh 1 446 310 9 662 GWh 1 457 063

Total quantity and receipts for bulk electricity

sales in kilowatt hours and rand, by category

of consumer:

No R (000s)

- Household 3 206,4 GWh 1 155 390 3 442,9 GWh 1 309 062

- Commercial 1 271,6 GWh 406 843 1 150,6 GWh 387 102

- Industrial 3 717 GWh 864 223 4 038,0 GWh 997 199

- Other (smallholdings) 149,5 GWh 56 997

TOTAL 8 344,5 GWh 2 483 453 8 631,5 GWh 2 693 363

Total year-to-date electricity losses in

kilowatt hours and rand

No R (000s) No R (000s)

TOTAL 712 767 327 113 330 807,6 GWh 142 194

Cost of lossesNumber of households with electricity ac-

cess, and type and cost of service

R (000s)

Detail No R (000s) No R(000’s)

- Electrified areas

- Municipal 343 245 1 605 178 360 564

(including bulk residential

connections)

2 379 367

- Eskom 54 210 N/a 47 964 N/a

- Alternative energy source City did not provide alternative energy.

- Gas Not available Not available Not available Not available

- Paraffin Not available Not available Not available Not available

- Solar power Not available Not available Not available Not available

- Wood Not available Not available Not available Not available

- Non-electrified Not available Not available Not available Not available

Note: If other types of service were avail-

able, please provide details.

Number and cost of new connections No R (000s)

Number and cost of new connections

(private developments)

3 654 4 747 3 839 23 400

Total (all developments) 8 623 22 662

Chapter 5

292



Number and cost of disconnections and

reconnections

196 415 32 928

(including the 328 280

final demands delivered

and the 51 101 illegal con-

nection inspections done)Total 118 972 23 543 196 415 32 928

Number and total value of planned and cur-

rent electrification projects

R (000s)

- Current (financial year after reporting year)

(2007/08)

32 368 335

- Planned (future years) (2008/09) 27 409 651

Note: Provide total number of projects and

project value as per initial or revised budget.

Anticipated expansion of electricity service No R (000s) No R (000s)

Total 11 265 112 000 12 000 63 600

Note: Provide total number of households

anticipated to benefit and total additional op-

erating cost a year for the City of Tshwane.

Estimated backlogs in, and cost to provide,

electricity connections

R (000s)

Total 8 746 35 500 12 000 63 600

Note: Total number should appear in the IDP, and cost should appear in future budgeted capital housing programmes.

Free basic services No R (000s) No R (000s)

- Quantity (number of households affected) 376 721 86 354 394 168 89 372

- Quantum (value to each household) 50 kWh a month 19,34 a month 50 kWh a month 20,48

Note: Provide details of how many house-

holds received free basic services, and

the average value it meant per household.

Describe in detail the level of the services.

50 kWh a month per residential premises in the demarcated area of Tshwane (City of Tshwane

licence area, and Eskom licence area within the City of Tshwane boundaries)

Type and number of grants and subsidies

received

No R (000s) No R (000s)

MIG 2 38 000 8 065 houses were to be

electrified

25 000

DME 11 500 houses were to be

electrified

28 600

Note: Total value of specific electricity

grants actually received during the year to

be recorded over five quarters (Apr to Jun

2006, Jul to Sep 2006, Oct to Dec 2006, Jan

to Mar 2007 and Apr to Jun 2007 Total operating cost of electricity distribution 2 486

293

Key performance area/

functional information

2005/06 2006/07 2007/08

Achieved R Target Achieved Variance explained Planned (as per

budget)Eradicate/reduce infrastructure

backlogs

2 819

4 719

6 000

6 941 (Winterveld

and Eskom areas)

11 131

13 110

Target exceeded due

to additional con-

nections provided in

Eskom areas

78 million

(12 000 eradica-

tions)

54 million

(7 200 eradica-

tions)Provide quality infrastructure for

growth

3 654 4 747 393 2 132 6 305

3 839 new

connections by

private develop-

ers

Demand driven 2 333

Ensure maintenance of existing

infrastructure

144 841 000 195 226 000 197 332 000 Serious need for main-

tenance

221 190 000

Ensure optimal resource utilisa-

tion (unaccounted electricity)

8% 9% 8,36% 9%

Optimise labour intensity and

community involvement

100% 20% 100% All labour-intensive

projects used local

labour

100%

Increase participation and

broaden the contribution in grow-

ing the city’s economy through

the development of SMMEs,

cooperatives, the informal sector

and the role of black people,

women and the youth

Not measured 10 20 Target exceeded

because 9 HDI

companies were

appointed for labour

and maintenance

contracts and 11 HDI

companies to supply

various materials to

the department.

20

Implement job creation initiatives Not measured 583 802 More jobs cre-

ated through capital

projects (EPWP)

600

Reduce the burden of poverty

through an effective indigent

policy that enhances access for

all those who qualify, and link

indigent families to targeted pov-

erty alleviation programmes that

improve household income.

Not measured 100% 100% for

Tshwane area;

32 270 out

of 47 964 in

Eskom areas;

100% of Eskom

configuration

Free basic

services were

to be discontin-

ued, except for

registered indigent

residents.

Chapter 5

294


Key performance area/

functional information

2005/06 2006/07 2007/08

Achieved R Target Achieved Variance explained Planned (as per

budget)Provide at least 6 000 residences

with prepaid meters

Not measured 2 000 4 681 Target exceeded due

to more applications

received. KPI was

application driven.

1 000

5.4.10.2 Street lighting


The street-lighting responsibilities of the City of Tshwane in-

cluded the following:

Lighting up public roads and public areas for safety and

Maintaining existing street lighting and area lighting (high

lic places in the area of jurisdiction of national or provincial

ments.

Cable theft

Late delivery and cost escalation of materials

Continuous increase in copper price



1. Number and total operating cost of street lights

servicing the population

No R (000s) No R (000s)

Number of street lights and high-mast lights 52 022 (south) 2 464 222 750 162 000

Note: Total number of street lights should be avail-

able from the municipal inventory.

2. Total bulk kilowatt hours consumed for street

lightingGigawatt hours 56 096 200 kWh 16 060 18,2 14 100

Note: Total number of kilowatt hours consumed by

all street lighting for the year

47. The 2005/06 annual report incorrectly recorded 390 000 households with sewerage services due to insufficient information at the time. No accurate system existed to

count the number of flush toilets. However, the above figures are a more accurate representation since they are based on GIS data.

295



and actual achievement

against targets

Actual

2005/06

Actual

2006/07

Target

2006/07

Maintenance of existing infra-

structure

Street lights were maintained and com-

plaints were dealt with within an average

of five days.

New complaints dealt

with within five days

95% of new complaints

dealt with within five days

New complaints dealt

with within five days

Acquisition of Consolidated Mu-

nicipal Infrastructure Programme

(CMIP) funding

Funding was obtained from the CMIP/

MIG.

R13 069 000 R11 500 000 R11 500 000

Installation of additional street

lights

Additional street lights were installed. 824 1 400 1 200

Installation of additional high-

mast lights

Additional high-mast lights were installed. 182 118 112

Chapter 5

296


of households in Tshwane was estimated at 620 210 as

quarter of 2006/07.

cil.

ment in the fourth quarter report.

City of Tshwane annual report 2005/06 p 16 plus 11 131

infrastructure departments.

rate measures.

partment for the fourth quarter report.

income distribution.

ment Department for the fourth quarter report.

Tshwane business satisfaction survey.

velopment Department for the fourth quarter report.

projects (City of Tshwane standard is 1 job = 240 person

would change as pensions changed.

monthly income of all the members of the household does

not exceed the joint pensions of two old-age state pen-

sioners.

standard of living of the people was better the closer the

5.5 FOOTNOTES

297

partment.

36 This index comprises the indicators on the departmental

nance Department’s second provisional report to the May-

oral Committee.

ceived for services.

penditure.

2007

44 The decrease was due to recycling activities.

45 The 2005/06 annual report incorrectly recorded 390 000

a more accurate representation since they are based on


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