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 City of Tshwane Annual Report 2008/2009

Panorama of the Union Buildings

and the surrounding gardens

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 VISION & MISSION

>> our 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.

>> our mission

Our Mission is to enhance the quality of life of all the people of Tshwane through a develop-
mental system of local government and by rendering efficient, effective and affordable services.

>> our value system

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:

• Community orientation: Provide and deliver sustainable services for the whole community
based on needs assessments.
• Transparency: Invite and encourage public sharing and democratic participation in the Mu-
nicipality’s activities.
• Commitment: Focus and concentrate on the Municipality’s core activities in a consistent
manner.
• Business orientation: Subscribe to and comply with the best business practices.
• Accountability: Report regularly to all stakeholders regarding the Municipality’s performance.
• Integrity: Conduct the Municipality’s business in a fair, responsible, flexible, equitable and
honest manner.
• Non-racialism and non-sexism: Promote mutual respect and non-discriminatory policies and
practices.

>> strategic focus areas

The strategic focus areas of the City of Tshwane are based on a manifesto mandate, which also
outlines target dates for the delivery of specific basic services to all residents. These strategic
areas are:

• Providing quality basic services and developing infrastructure, with priority being given to
communities in the northern parts of the city where there are huge backlogs, whilst ensuring
that infrastructure is maintained in all other parts of the city.
• Achieving a higher economic growth rate to ensure that more sustainable jobs are created

pg 4 // City of Tshwane Annual Report 2008/2009

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 VISION & MISSION

and the city becomes more globally competitive.

• Promoting thriving, sustainable communities jointly with other stakeholders through pro-
grammes that assist those vulnerable to poverty, and ensuring that the city is clean, healthy
and safe.
• Fostering participatory democracy by encouraging involvement in the day-to-day affairs of
the city and observing the principles of Batho Pele by providing a caring, accessible and ac-
countable service.
• Fast-tracking the transformation of the Municipality as an institution so that it promotes good
governance and high ethical standards; sustains financial viability; and ensures that the staff
are more representative of the society they serve, and so that capacity to execute mandates
is built in through a performance-based approach.

The above strategic focus areas are guided by the long-term goals outlined in the City’s Develop-
ment Strategy. These are to:

• Deliver on the manifesto and mandate to improve the quality of life of the people of Tshwane
and to make local government work better;
• Ensure continuity and change by building on the successes of the past term and to review
and align them to new strategic objectives;
• Achieve state-led development through an effective inter-governmental relations framework
that capitalises on available resources to optimise capacity;
• Foster sustainable integrated development focusing on economic, social and environmental
priorities;
• Provide quality services, implement the Batho Pele principles and achieve people-centred
development;
• Build the City of Tshwane’s institutional capacity to be efficient, financially viable and aligned
to the constitutional requirements for transformation;
• Ensure good governance that fosters participatory democracy, transparency, accountability
and decisive action against corruption;
• Develop strategic partnerships with civic organisations, business, labour movements, com-
munities and other institutions in the City to ensure a common vision;
• Use e-governance as a means of making government accessible to the people; and
• Capitalise on the capital status of the City and the various relations with other cities locally
and internationally.

City of Tshwane Annual Report 2008/2009 // pg 5

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 TABLE OF CONTENTS

0 1 CHAPTER ONE
INTRODUCTION AND OVERVIEW

1.1 Foreword by the Executive Mayor 8

1.2 Executive Review by the City Manager 10
1.3 Organogram 12
1.4 Report of the Audit Committee 13
1.5 Introduction 16
1.6 Overview of the Municipality 19
1.7 Executive Summary 20

0 2 CHAPTER TWO
PERFORMANCE HIGHLIGHTS

2.1 Energy and Electricity 25

2.2 Roads and Stormwater 28
2.3 Transport Planning 33
2.4 Water and Sanitation 33
2.5 Housing 38
2.6 Environmental Management 38
2.7 Waste Management 43
2.8 Sport, Recreation, Arts and Culture 43
2.9 Integrated Community Development 44
2.10 Health 46
2.11 Community Safety 48
2.12 City Planning 50
2.13 Economic Development 53
2.14 Corporate Services 58
2.15 Finance 59
2.16 Strategic Partnership

0 3 CHAPTER THREE
HUMAN RESOURCES AND ORGANISATIONAL MANAGEMENT

3.1 Organisational Structure 61

3.2 Alternative Service Delivery 61
3.3 Trends in Personnel Expenditure 63
3.4 Staff Information 63
3.5 Disclosure of Senior Staff Benefits 65
3.6 HR Practices and Policies 67
3.7 Employment Equity 68
3.8 Skills Development 70
3.9 Occupational Health and Safety 72
3.10 Performance Management 74
3.11 Pension Funds 74
3.12 Medical Aid Funds 75
3.13 Outstanding Amounts Owed 75

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 TABLE OF CONTENTS

0 4 CHAPTER FOUR
AUDIT STATEMENTS AND RELATED FINANCIAL INFORMATION

4.1 Auditor General’s Report 79

4.2 Report of the Chief Financial Officer 84
4.3 Accounting Policies 130
4.4 Financial Statements 125
4.5 Action Plan of the City of Tshwane 200

0 5
CHAPTER FIVE
AUDIT STATEMENTS AND RELATED FINANCIAL INFORMATION

5.1 General information 206

5.2 Corporate Performance Report 211
5.3 Issues for the Province to Report on 242
5.4 Functional Analysis per Government Finance Statistics Classification 243
Executive and Council 243
Finance 245
Human Resources 254
Planning and Development 282
Economic Development 297
Health 314
Community and Social Services 324
Social Development 343
Housing 347
Public Safety 355
Waste Management 360
Waste Water Management 366
Transport 375
Roads 387
Water 405
Electricity 421
Street Lighting 431
5.5 Municipal Entities 432

City of Tshwane Annual Report 2008/2009 // pg 7

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 CHAPTER ONE: Foreword by the Executive Mayor

>> 1.1 Foreword by the Executive Mayor

As a service to our City and as a tribute to the veterans of our democ-

racy and freedom, we renewed our commitment to the ‘business unusual’
approach for the 2007/8 financial year. This Annual Report presents the
successes and progress that we have achieved through partnerships with
resident communities, business and various stakeholders. We thank you all
for your support and indeed; working together we can and we will do even
more!

Of the many highlights this year, the most humbling for the Council and this capital of the Repub-
lic of South Africa, is the acceptance of the Award of the Freedom of the City of Tshwane by his
Excellency Mr Nelson Rolihlahla Mandela. We are hopeful that through this award all of us will
continuously be inspired by the legacy of his life and that of other veterans. The legacy of having
courage to sacrifice for peace, freedom and justice as well as passion of celebrating life through
service to humanity – especially for the benefit of those most vulnerable amongst us.

The year under review has been one full of progress and yet presented with challenges at local,
national and international fronts. The global financial crisis that commenced at the beginning
of the year and escalated rapidly affected every country, sector and to a large extent; every
household. The national electricity load shedding interventions also highlighted that our natural
resources as well as our planning capacity have not kept up with the extent and speed of service
delivery as reflected by the high household and business energy demands locally and nationally.
Yet another awakening is that development must be sustainable, responsible and mindful of the
legacy that we would all wish to leave behind for future generations.

pg 8 // City of Tshwane Annual Report 2008/2009

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 CHAPTER ONE: Forward by the Executive Mayor

Despite these challenging times, that include the rapid population increase as indicated by the
Statistics South Africa Community Survey conducted in 2007, we remained focused on improving
services to more than half a million customers; supporting over 40 000 indigent households and
continually strived to nurture an investor friendly environment. Access to potable water increased
to 97% of the population; thus enabling us to be on schedule to meet the National Target of
December 2008. Over and above other initiatives meant to assist us in keeping with our com-
mitment to make Tshwane a Child Friendly City, eighty crèches were supported.

Included in the report are numerous awards of excellence that the City received. On behalf of
the Mayoral Committee, Council and all our people we thank all employees that went beyond
the call of duty as public servants. We will build on these achievements and draw lessons from
the challenges we came across. Together we can do even more in building a caring, efficient
and developmental City!

Dr GM Ramokgopa
Executive Mayor

City of Tshwane Annual Report 2008/2009 // pg 9

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 CHAPTER ONE: Executive Review by the City Manager

>> 1.2 Executive Review by the City Manager

With the promulgation of the Municipal Structures Act of 1998, a new era of local government
came into being. This resulted in the implementation of a new local government system in 2000
and the ushering in of pioneer local government councils, as well as the amalgamation of 13
City and Town Councils in what was known as the Greater Pretoria area into the City of Tshwane.

To optimally restructure the institution, the Council opted for the Alternative Service Delivery
(ASD) model to drive the efforts of the new structure.

In the year under review; the amalgamation and restructuring process was completed resulting in
the stabilisation of the new organisational structure as well as the establishment of 5 regions to
realise our goal of bringing government closest to the people.

The 2007/08 year saw significant achievements for the City of Tshwane, in spite of the fiscal chal-
lenges such as escalating inflation, a weak exchange rate and an overall low national productiv-
ity rate which adversely affected many of our households. Despite these challenges, Tshwane still
managed to achieve an above-average economic growth, as predicted in the Executive Mayor’s
State of the City Address in March 2008.

Our vision as the City of Tshwane is to be the leading international African Capital City of Excel-
lence that empowers the community to prosper in a safe and healthy environment. We plan to
achieve this through a developmental system of local government and the rendering of efficient,
effective and affordable services. In order to realise our vision and succeed in our mission we
have articulated our goals in five strategic objectives:

1. To provide quality basic services and develop infrastructure;

2. To accelerate higher and shared economic growth and development;
3. To fight poverty, building clean, healthy, safe and sustainable communities;
4. To foster participatory democracy and Batho Pele principles through a caring, accessible and
accountable service; and
5. To ensure good governance, financial viability and optimal institutional transformation with
the capacity to execute our mandate.

Throughout the year we have monitored and evaluated ourselves against these goals by keeping
track of key performance areas; key performance indicators and targets as contained in the five-
year City scorecard (the detail of which is found in Chapter 1).

We note progress in Productivity; Financial Stability; Overall Management of the Municipality

and Corporate Governance. This indicates significant progress in driving the Municipality even
closer to its goal to be Africa’s leading capital City of Excellence.

pg 10 // City of Tshwane Annual Report 2008/2009

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 CHAPTER ONE: Executive Review by the City Manager

A major step forward in public participation in line with legislative requirements and the principles
of Batho Pele was achieved with the finalisation of the Stakeholder Management Framework,
which will deepen participatory democracy in the Tshwane metropolitan area. Improved public
consultation will go a long way towards enhancing the culture of paying for services and building
cooperation between the Municipality and the Community.

The Republic of South Africa is facing energy shortages as the national supplier; ESKOM is strug-
gling to meet all our energy requirements. This is further exacerbated by escalating electricity
tariffs. To placate the impact of this situation, the CoT has innovative schemes such as increasing
delivery of non-conventional sources of electricity such as gas and solar energy to ease the pres-
sure on energy providers and pave the way to more effective, reliable service delivery in future.

Along with the rest of the country we look forward to a successful 2010 World Cup tournament
when the international spotlight will fall on South Africa. The CoT is geared up and will be ready
for both the Confederation Cup in 2009 and the FIFA Soccer World Cup in 2010. Fighting the
scourge of crime remains a high priority not only to improve the safety of our communities, but
also to safeguard international visitors who will be descending on the City for the tournament.
The legacy of the Soccer World Cup is that it has been a catalyst for infrastructure upgrades and
this has consequently made our residents the prime beneficiaries of improved roads and services
that they will enjoy for years to come.

We trust that our determination to enhance the quality of life of the people of Tshwane will be
evident from the contents of this Annual Report and I am pleased to present it to our community
and stakeholders.

Regards,

Kiba Kekana
City Manager

City of Tshwane Annual Report 2008/2009 // pg 11

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 CHAPTER ONE: Organogram

1.3 >> organogram

K Dau Dr GM Ramokgopa T Komane

Speaker Executive Mayor Chief Whip

T Ernest N Mokwena B Lehobye G Thwala Z Masondo

MMC: Agriculture and MMC: City Planning, MMC: Community Safety MMC: Corporate and MMC: Sports, Recreation
Environmental Development and Regions Shared Services Arts & Culture
Management

S Pillay AM Ditshoke S Thipe P Chueu WB Mahlangu

MMC: Public Works and MMC: Housing and MMC: Health and Social MMC: Economic MMC: Finance
Infrastructure Development Sustainable Human Development Development
Settlement Development

pg 12 // City of Tshwane Annual Report 2008/2009

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 CHAPTER ONE: Report of the Audit Committee

>> 1.4 Report of the Audit Committee

We are pleased to present our report for the financial year ended 30 June 2008.

The Local Government Municipal Finance Management Act, 2003 (Act 56 if 2003), requires
that the Audit Committee meet at least four times a year. During the financial year under review,
six meetings were held. In addition to that, meetings were held with the Executive Mayor, City
Manager, Auditor General as well with the Internal Auditors’ Office. Matters that were discussed
at such meetings include issues related to Performance Management and Evaluation; Risk Man-
agement; Internal Control; Governance Process and Financial Reporting.

The attendance record for members of the Committee was as follows:

Name of Member Number of meetings held Number of meetings at-

during the year tended during the year
Mr K. Buthelezi (Chairperson) 6 6
Ms. K Rapoo 6 5
Mr M.G. Rangongo 6 5
Mr. R.T. Tshimomola 6 5
Ms V. Pillay 6 6
Mr P. Chwene 6 5

Audit Committee Responsibility

The Committee reports that it has as far as possible complied with its responsibility arising from
its Terms of Reference including the relevant legislative requirements.

Efficiency and Effectiveness of Internal Control

The deficiency and shortcomings reported by Internal Audit and the Auditor-General as well
as matters brought to the attention of the Accounting Officer by way of informal queries and
management letters indicates that the internal checking and control measures did not function
adequately in various respects during the year under review. Accordingly, the Auditor-General
has not placed any reliance on the internal controls in the finalisation of the year end audit.

There was notable improvement in the control environment through the establishment of the
Municipal Public Accounts Committee (MPAC) and the Oversight Committee that assisted the
Council in ensuring appropriate standards in terms of handling public funds and serving in public
office.

In addition, delegation of authority and the assignment of responsibility within the organisation
were also more clearly defined.

City of Tshwane Annual Report 2008/2009 // pg 13

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 CHAPTER ONE: Report of the Audit Committee

Furthermore the Committee has reviewed the Internal Audit Structure to enhance the internal
control environment of the City. The Committee further would like to acknowledge and appreci-
ate the support from the Mayoral Committee particularly, the Executive Mayor in this initiative.

Risk Management

While progress has been made in the establishment of the Risk Management Structure and
Framework, a formal Enterprise Wide Risk Management function and process was not estab-
lished and implemented for the year under review. This includes the establishment of a Risk Com-
mittee and the development of a Risk Management Policy.

In order to enhance the Risk Management process of the Municipality, the City is in the process
of relocating the Risk Management Unit to the City Manager’s Office so that it can work inde-
pendently and comply with relevant the legislation.

Performance Measurement

Management Reports:

The Committee noted an improvement in the method of reporting the performance of the City.

Performance Management

While the Committee acknowledges improvements in the Performance Management System, it

draws attention to the highlighted areas of non-compliance as contained in the Auditor-Gener-
al’s report and the Internal Audit Control environment report, which include the following:

• Non-compliance with regulatory requirements;

• No correlation between performance targets and the IDP;
• Targets inconsistent between IDP and annual performance report;
• Lack of sufficient appropriate audit evidence to support the actual targets achieved on ‘Pro-
viding quality basic services and infrastructure’;
• Lack of sufficient appropriate audit evidence to support the actual targets achieved on ‘Pro-
viding quality basic services and infrastructure’;
• Inconsistent with report relating to unaccounted water as per the water and sanitation report;
and
• Incomplete performance information submitted on the performance relating to the municipal
entities.

Furthermore, the annual performance report submitted for audit purposes on 31 August 2008

pg 14 // City of Tshwane Annual Report 2008/2009

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 CHAPTER ONE: Report of the Audit Committee

was incomplete and did not; in all instances include essential information as required by the
relevant laws and regulations.
Review and Evaluation of the Annual Financial Statements

The financial statements are prepared according to Basics of Accounting as determined by the
National Treasury and as set out in the Accounting Policy (please note 1 from the Basics of Ac-
counting applicable to the Municipalities in terms of General Notice 552 of 2007, issued in
Government Gazette 30013 of 29 June 2007 and in a manner required by the MFMA). The
Committee draws attention to other matters that are contained in the Auditor-General’s report.

The Committee has-

• reviewed the Consolidated Audited Annual Financial Statements for the year ended 30 June
2008;
• noted the actions taken by Management in respect of the previous year’s qualification and
emphasis of matter paragraph;
• reviewed responses by Management to the Management Report that was issued by the
Auditor-General;
• noted that the Consolidated Financial Statements include the results of all Municipal entities;
and
• taken cognisance of property rates and property values as well as property, plant and equip-
ment for continuous monitoring.

Conclusion

The Committee concurs and accepts the Auditor General’s report on the Annual Financial State-
ments for the year ended 30 June 2008. The Committee is of the opinion that the Audited An-
nual Financial Statements should be accepted and read together with the reports of the Auditor-
General.

The Committee fully supports the City on its journey of improved service delivery and a successful
Confederations Cup and 2010 FIFA Soccer World Cup 2010 soccer events.

Mr K. Buthelezi
Chairperson of the Audit Committee

City of Tshwane Annual Report 2008/2009 // pg 15

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 CHAPTER ONE: Introduction

>> 1.5 Introduction

Tshwane is the smallest of South Africa’s nine provinces, Gauteng (Sotho for “place of gold”).
Tshwane’s neighbouring provinces are the North West Province, Mpumalanga and Limpopo.

The City has about 10 inhabitants per hectare. The population of almost 2 million people has
on average the highest educational level in the country. The projected annual growth of the
population between 1996 and 2001 was 4,1%, which was substantially higher than the national
average of 2.1%.

According to the last Census that was conducted in 2001, the home language profile of Tshwane
indicates that the most widely used home language is Sepedi, followed by Afrikaans, Setswana,
Xitsonga, isiZulu and English. These six languages account for 84.68% of the population.

Financially, the City of Tshwane is currently one of the healthiest municipalities. It has been
awarded the highest short-term rating possible, an A+ long-term credit rating from CA Ratings,
which means its outlook is strong, and an A short-term rating, which means it is stable.

The ratings are based on the City of Tshwane’s ability to meet its long-term commitments, its
short-term liquidity and its level of administrative, executive and political stability.

The strategic focus areas of the City of Tshwane are based on a policy mandate with clearly de-
fined target dates for the delivery of specific basic services to all residents. These strategies are
aimed at:

1. Providing quality basic services and infrastructure

The City of Tshwane upholds the provision of and access to basic services as a human right ac-
cording to our country’s internationally acclaimed Constitution.

The following primary service delivery and infrastructure development achievements are noted
(see also the Executive Summary on p 19):

Housing Number of houses handed over to targeted recipients of low-income housing 6 152
Electricity Number of houses in the Electricity Service Authority area that were provided with a legal 22 777

electricity connection for the first time

Water Number of houses in the Water Service Authority area that were provided with water for 23 168

the first time (potable water within 200 m of the dwelling)

pg 16 // City of Tshwane Annual Report 2008/2009

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 CHAPTER ONE: Introduction

The following special projects have been raising the quality of life in specific communities:

TSOŠOLOŠO: This is one of the lead programmes of the City’s Development Strategy. It is aimed
at improving the quality of public spaces and creating economic opportunities in disadvantaged
areas, with particular attention to nodal interchanges and urban cores such as Saulsville CBD,
Mabopane Station, Eerste Fabrieke Station Town Centre and Hammanskraal.

A contract for funding the programme has been concluded with National Treasury. Business Plans
have been developed for 47 projects and detailed design frameworks have been completed for
the Denneboom and Mabopane station areas and the Eerste Fabrieke Town Centre.

GAUTRAIN STATIONS: The Gautrain Rapid Rail Link is destined to be the largest public invest-
ment project in Gauteng and indeed in South Africa. There is wide-scale interest from private
sector developers to develop infrastructure around the three stations in Tshwane (Centurion,
Pretoria and Hatfield). A large number of applications have already been lodged, or are in the
process of being finalised for a variety of developments in these areas. Certain developments are
already in the construction phase.

TSHWANE INTERNATIONAL CONVENTION CENTRE: In August 2002, the City of Tshwane

approved the development of the Tshwane International Convention Centre (TICC) as a Public-
Private Partnership (PPP) in principle.

This Special Mayoral Project will cost an amount of R3,5 billion and yield a gross lettable area
larger than 240 000 m². The City of Tshwane’s investment of R220 million will produce a capital
investment worth nearly 16 times the current market value of the land, in addition to economic
and social benefits. The project is estimated to create 10 000 jobs, of which half will be perma-
nent. The temporary jobs will provide capacity-building and skills transfer opportunities. Beyond
this, the City of Tshwane will receive substantial additional rates revenues and, as a result, will
boast over R80 million in additional infrastructure, with excess capacity to attract and serve ad-
ditional development in the area.

TSHWANE TOWN PLANNING SCHEME, 2008: The Land Use Legislation and Application
Management Section produced the first consolidated and modern Town Planning scheme in
Gauteng and South Africa. The Tshwane Town Planning Scheme, 2008, an in-house project
developed over five years, was completed on 19 June 2008. The design is the basis for the new
Tshwane Land Use Management System and will no doubt influence legislation in this field.

2. Accelerate higher and shared economic growth and development

Special projects were also introduced to stimulate local economic development, in particular,
entrepreneurial development, during 2007/08.

City of Tshwane Annual Report 2008/2009 // pg 17

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 CHAPTER ONE: Introduction

ENTREPRENEURIAL SKILLS TRAINING FOR INFORMAL FRESH PRODUCE RETAILERS: The

need to assist informal traders with sound business principles and customer retention resulted in
the training of 60 traders who were trained on Small Business and Administration Management;
Post-Harvest Technology and Product Knowledge; as well as Food Safety and Personal Hygiene.
The offshoot of the training was the creation of 28 additional jobs in the handling and distribution
of Fresh Produce to various regions in the Tshwane area.

3. Alleviate poverty and build clean, healthy, safe and sustainable communities

The increasing unemployment and poverty among the residents of Tshwane were eased when
the Energy and Electricity Department offered 28 382 temporary jobs under the supervision of
the Department of Labour. R4,4 million was spent on Job Creation (hourly rates) and a further
R2,2 million was obtained from the Department of Labour to assist the Municipality in facilitating
Skills Training. Electricity was supplied to more than 11 250 households and more than 2 000
street lights were installed. The Sport, Recreation, Arts and Culture (SRAC) Department spent R63
393.168 (90% of the capital budget) on its BEE Development Plan.

The following special projects were introduced to deliver community facilities:

• Nellmapius Community Centre: Indoor and outdoor sport centre: 65 temporary jobs cre-
ated;
• Atteridgeville Super Stadium: 254 temporary jobs created;
• Ga-Rankuwa Library: 34 temporary jobs created, 90% of budget spent;
• Temba Sport Complex: 22 temporary jobs created
(100% of budget spent – R1,500 000);
• Soshanguve Giant Stadium: 75 temporary jobs created, and 5,100 person days local labour
employed; and
• West End Disabled Sport Facility: Upgrading of sleeping quarters.

4. Ensure good governance, financial viability and optimal institutional transformation

with the capacity to execute the mandate

The principles of the Municipal Finance Management Act (MFMA) have been incorporated into
the Revenue Enhancement Strategy – a project that is undertaken in collaboration with Pricewa-
terhouseCoopers, which will enable the City of Tshwane to implement speedily and the remain-
der of the infrastructure backlog. This strategy will deliver R2 billion in savings or new income
over three years.

The Development Process, which runs concurrently with the Risk Management and Internal Con-
trol System (RMICS), contributes to the long-term financial sustainability of the City of Tshwane.
These projects are directly responsible for the production of income from the rates base, and will
ensure sound and sustainable financial management.

pg 18 // City of Tshwane Annual Report 2008/2009

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 CHAPTER ONE: Overview of the Municipality

5. Fostering participatory democracy

One of the pillars of the City of Tshwane’s five-year strategic business plan, namely to foster
participatory democracy, is sustained by the dynamic and ever developing relationship that the
City of Tshwane continues to nurture with various stakeholders. The non-government sector is
supportive and interest shown by the business sector remains an inspiration. At an organisational
level, community participation displayed, together with dedicated councillors and staff ensured
the success of our projects and developments.

>> 1.6 overview of the municipality

The City of Tshwane is governed by the Executive Mayor and the ten members of the Mayoral
Committee. Acting as a local Cabinet, their task is to implement the political mandate to improve
the socio-economic conditions of the people of Tshwane. The Municipal Manager and Chief Op-
erating Officer, assisted by the Strategic Executive Officers manage the following departments:

1. Metropolitan Police;
2. Economic Development;
3. Marketing and Tourism;
4. Social Development;
5. Corporate Services;
6. Emergency Management Services;
7. Service Delivery;
8. Legal Services;
9. Finance; and
10. City Planning, Housing and Environmental Management

The Council of the Municipality consists of elected Councillors from the City’s 76 wards, and the
administrative structure consists of appointed staff members.

Geographical area

The Gauteng Province covers a geographical area of 17 010 km2 (1.4% of South Africa), while
the City of Tshwane Metropolitan Municipality covers an area of 2 198 km2 (almost 65 km long
and 50 km wide). The 2,2 million residents inhabit the municipal areas of:

Pretoria Akasia Soshanguve

Centurion Mabopane Atteridgeville
Ga-Rankuwa Winterveld Hammanskraal
Temba Pienaarsrivier Crocodile River
Mamelodi

City of Tshwane Annual Report 2008/2009 // pg 19

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 CHAPTER ONE: Overview of the Municipality

Demographic profile

Total population (individuals):

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
2007 2 345 908 5,3
Source: *Stats SA (Census 2001), updated by annual household/community surveys

Growth in the total population (individuals and households):

Persons Households
Census: 2001 Community survey: Census: 2001 Community survey:
2007 2007
1 982 235 2 345 908 561 771 686 640
% Growth 2001 – 2007: 18,3% % Growth 2001 – 2007: 22,2%

>> 1.7 executive summary

The year under review was one of considerable success for the City of Tshwane and this was ac-
knowledged by means of local and international awards across a broad spectrum of areas. The
major drive continued to be the eradication of service delivery backlogs.

Detailed reports on all departments can be found in Chapter 2 (Performance Highlights) and
Chapter 5 (Functional Service Delivery). This summary highlights some of the major activities.

Worthy of particular noting are the following:

1. A total of 23 168 households were provided with water connections for the first time and 13
223 households were equipped with sanitation connections. Registered indigent consumers
(47 774 households) received 12 kilolitres of water and yielded 5,88 kilolitres of waste water
discharge each month, free of charge.
2. Considering that the Water and Sanitation Division’s vision is to be the leading local govern-
ment provider of sustainable, high-quality water and sanitation services on the African con-
tinent, an effective and efficient operation and maintenance of its vast infrastructure, which
has a replacement value of R10 647 045 690 is required.
3. A total of 22 777 households received first-time electricity connections and free basic elec-

pg 20 // City of Tshwane Annual Report 2008/2009

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 CHAPTER ONE: Overview of the Municipality

tricity has been provided to all the indigent consumers of Tshwane.

4. Among the achievements of the Housing and Sustainable Development Department are the
handing over of 6152 new houses to targeted low-income recipients; and the number of
rental units built over the past two years rose to 360.
5. Another success was the implementation of the Informal Settlement Management Plan and
the Land Invasion Management Plan, which has been used as a benchmark by the Gauteng
Province.
6. The Roads and Stormwater Division continued to eradicate backlogs at a constant pace,
using 100% local labour for each project and creating 1 385 short-term jobs. A marked
decline in fatalities and serious injuries from road traffic accidents bears testimony to the
success of the City’s policies and road safety projects.
7. Special programmes include ongoing cooperation on the Gautrain project, 11 projects
directly linked to preparations for the 2010 FIFA World Cup, as well as turnkey projects for
the eradication of roads and stormwater backlogs in Soshanguve and the rehabilitation of
sinkholes in dolomite areas.
8. Additional projects undertaken with strategic partners include the Shova Kalula (Easy Ride)
Cycle Project in Atteridgeville, and the provision/upgrading of internal roads and stormwater
infrastructure in the three Top 20 townships of Tshwane, namely; Soshanguve, Mamelodi
and Atteridgeville.
9. Environmental management continues to be a major focus for the City of Tshwane and a
host of initiatives saw considerable progress in this regard.
10. Among others, the year under review saw the planting of 12 000 street trees on road re-
serves and the improvement of several resorts, including the new Klip/Kruisfontein Resort,
Temba/Hammanskraal, Moretele Park, Ga-Mothakga Resort and Rietvlei Nature Reserve. A
concerted effort to comply with the Conservation of Agricultural Resources Act (CARA) saw
R3 million being allocated to this end.
11. Another important environmental development was the completion of the Environmental
Management Framework (EMF) Zone of Choice (ZOC), which will go a long way towards
fostering greater understanding and acceptance of land use policies and developing key
strategies for sustainable development. The Tshwane Integrated Environmental Policy (TIEP)
was also being implemented in terms of a five-year implementation plan ending in 2011,
which will further cement efforts to conserve and improve the environment.
12. Recycling was another major area of focus, with one achievement being the recycling of
around 19 tons of waste during the Pretoria Show. In addition, a law enforcement campaign
led to numerous arrests, convictions and fines.
13. Preparations for the 2009 Confederations Cup and the 2010 FIFA World Cup remained
high on the agenda for the Sport and Recreation Division. Activities in line with the Loftus
Versfeld Stadium precinct plan are progressing well and a number of improvements to meet
FIFA requirements were identified and completed. Training venues have been identified and
are being developed to FIFA’s standards to ensure that world-class facilities are provided in
the underdeveloped parts of Tshwane.

City of Tshwane Annual Report 2008/2009 // pg 21

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 CHAPTER ONE: Overview of the Municipality

14. A major step forward in alleviating poverty was the launching of a marketing campaign in
support of a mass registration process to encourage members of the public to apply for in-
clusion in the indigent register. To date 17 100 new indigent households have been verified.
Arrears of identified poor families unable to pay for municipal services have been scrapped
and continued access by poor families to free basic services has been assured.
15. Additional strategies to enhance Social Services during the fiscal year include a five-year
Integrated Childhood Development Strategy (ICDS) to guide municipal departments and
city-wide organisations to create a child-friendly city, and the implementation and funding of
numerous programmes to ensure the mainstream inclusion into society of the youth, women,
people living with disabilities and the elderly, so as to decrease their vulnerability.
16. In the area of health services, challenges exist in respect of manpower and funding. How-
ever, some achievements included:
• Clinics maintained the immunisation coverage in Tshwane at 95%, and 90% surveyed
respondents indicated they were satisfied with the clinic environment and 84% were
satisfied with the quality of healthcare of the professionals based there. Medicine avail-
ability was above 99% and vaccines were 100% available in clinics at all times.
• The average time taken for Ambulance Services to respond to an emergency call for
Priority 1 calls according to the set provincial norms and standards improved from 65%
to 83%.
• An HIV and Aids Employee Support Programme is rendering a counselling and disease
management support service as well as a 24/7 health helpline to all employees.
• The comprehensive Tshwane Aids Strategy 2007 – 2011 was approved by the Council
on 29 November 2007.

• Community Safety Services continue to receive priority attention. Among the developments
were the appointment of 350 recruits to the Tshwane Metropolitan Police Service (TMPS)
during the first quarter of 2008 and a new By-Law Enforcement Centre (BEC). A Disaster
Management Framework for the City of Tshwane has also been developed. The Fire Safety
Section has seen a reduction in significant fire incidents and losses, despite manpower short-
ages, and fire safety objectives are being met.
• Among the numerous achievements of the Metropolitan Planning Section was the finalisation
of the Tshwane Spatial Development Strategy: 2010 and Beyond. The Tsošološo Programme
was conceptualised to improve the quality of life in marginalised areas and create more
economic development opportunities for the local communities. Tshwane has been selected
as a “strategic ally” by National Treasury, and around R17 million in funding for technical
assistance has been approved. Another development has been the amalgamation of six
town-planning schemes into a single scheme.
• One of the City’s most innovative initiatives is the Smart City Project, arguably the single
most important vehicle for transforming the way people live, work and learn in Tshwane.
Focusing on five key development clusters, the City of Tshwane will deliver on the Smart City
Project with the support of strategic partnerships with entities including The Innovation Hub,

pg 22 // City of Tshwane Annual Report 2008/2009

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 CHAPTER ONE: Overview of the Municipality

Blue IQ and the City of Oulu in Finland.

• A major event for the Local Economic Development Division was the inaugural Tshwane In-
ternational Trade and Infrastructure Investment Conference (TITIIC) in May 2008, aimed at
positioning Tshwane as a preferred tourism, trade and investment destination in South Africa.
The City of Tshwane’s visible presence in the Rosslyn Auto Supplier Park strengthened the
interface with key stakeholders in the automotive industry, resulting in investments by compa-
nies including Ford Motor Company, TATA Motor Company and Nissan South Africa. Such
initiatives re-affirmed the City of Tshwane’s position as a key economic player in Gauteng
and also highlighted the importance of a more integrated approach to local economic de-
velopment between stakeholders at national and provincial government.
• Initiatives of the Agriculture and Environmental Management Department included the fund-
ing of various cooperatives, totalling R2,5 million. Additional major projects included the
Winterveld Citrus Project, the Women In Cooperatives Project and the Household Food
Security and Poverty Alleviation Programme. The Tshwane Fresh Produce Market, still the
second largest market out of the 19 markets in South Africa, is completely self-sustainable
and consistently achieves an operating surplus (anticipated to be at least R23 million for
2008/09).
• Key programmes promoting the tourism industry in Tshwane included the Tshwane Tour-
ism Awards Programme 2007, which acknowledged and rewarded service excellence, the
Tourism Indaba 2008, which saw a record number of delegates attending the year’s show,
township bed and breakfast grading, training and skills development of 15 SMMEs, and the
erection of directional signage for tourism.
• The approved Human Resources Development Strategy was being implemented on an on-
going basis. Among its achievements were the 8 078 individuals who were trained in terms
of skills priorities. One Integrated Transaction Processing System (OITPS) training was receiv-
ing separate, special attention.
• A major success of the Finance Department was its leading of the planning process for
integrated, focused service delivery and the implementation of the Municipal Finance Man-
agement Act (MFMA) and National Treasury financial management reforms, ensuring the
continuance of the Municipality’s status as a leading pilot municipality in local government
financial reforms.

The City of Tshwane achieved numerous accolades and awards during the financial year, includ-
ing:

• 1st prize for the Roads and Stormwater Division in the International Road Federation’s (IRF’s)
2007 road safety awards drive for a project called “Development and Implementation of
Road Safety Master Plans – an Inclusive Approach” in Ljubljana, Slovenia, in April 2008.
• The Environmental Policy and Resource Management Division harvested no less than 14
awards for the Municipality at the provincial Bontle ke Botho (BkB) 2007, among them the
coveted Best Performing Metro 2007, for the second year running.

City of Tshwane Annual Report 2008/2009 // pg 23

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 CHAPTER ONE: Overview of the Municipality

• Parks and Horticulture Services saw the City of Tshwane achieving a silver award at the Gar-
den World Spring Festival in August 2007, and another silver award at the annual Sunday
Tribune Garden and Leisure Show in Pietermaritzburg in October 2007.
• The 1st Gauteng Golden Circle Award for Best Municipality on Youth Development.
• Multilingualism and Nation Building Municipality of the Decade Award.

pg 24 // City of Tshwane Annual Report 2008/2009

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 CHAPTER TWO: Energy and Electricity

Among the strategic focus areas of the City of Tshwane are the provision of
quality basic services, the development of infrastructure and the achieve-
ment of a higher economic growth rate. The service delivery achievements
of 2007/08 are discussed below.

>> 2.1 Energy and electricity

The Energy and Electricity Department is responsible for providing a safe, effective and efficient
supply of electricity to communities and customers within its licensed area of supply. This includes
the generation of electricity, and the repair, maintenance, construction and development of the
electricity network to serve all industrial, commercial and residential consumers in the licensed
area of supply. Eskom supplies most of the areas to the north of the city, such as Ga Rankuwa,
Winterveld and Mabopane. The achievements of the Department are:

• 11 250 completed and occupied houses electrified

• 5 152 completed and occupied houses in Winterveld electrified
• 6 375 new private connections added to the network
• 18 619 households that were not electrified were supplied with free alternative energy equiv-
alent to 50 kW monthly.
• 2 651 residences were provided with prepaid meters.
• R251 213 170,00 was spent on the maintenance of electricity infrastructure.
• 100% of projects used local labour.
• 54 SMMEs were supported.
• 915 short-term jobs were created.
• The total income from electricity sales totalled R2 659 628 321.
• Power stations generated a total of 1 005 044 771 kilowatts.

City of Tshwane Annual Report 2008/2009 // pg 25

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 CHAPTER TWO: Energy and Electricity

• The energy system generated 9,789,883,844 kilowatts of which 8,783,839,973 kilowatts

were Eskom purchases.
• This financial year the whole country experienced load-shedding owing to a shortage in elec-
tricity supply/generation by Eskom. This led to a tariff increase of about 27% being allowed
by Nersa to assist Eskom with the building of new generation plants.

2.1.1 Level and standard of service 1

The following levels of service apply:

• Formalised (unproclaimed) townships receive 20 A prepaid meter boxes and ready-board

life-line connections free of charge.
• 50 kWh of free energy is provided per month.
• Underground (MV) and overhead (LV) networks are provided.
• High masts are installed in high-crime areas, open spaces, parks and public facilities such
as Metrorail stations and taxi ranks.
• Street lights are installed on main bus routes and streets that are not illuminated by way of
high masts, with the exclusion of private property, plots or agricultural holdings.
• Full service levels apply in proclaimed areas.

2.1.2 Free basic electricity

Free basic electricity has been provided to all the indigent consumers of Tshwane. The Tshwane
supply area is divided into two supplier areas, namely the Tshwane Energy and Electricity and the
Eskom supply area.

Free basic electricity of 50 kWh has been provided to all electricity consumers in these areas, and
the City of Tshwane has paid for the free electricity of consumers in the Eskom areas.

1
Service levels were approved by the Council on 25 January 2007.

pg 26 // City of Tshwane Annual Report 2008/2009

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Annual Report v2.indd 27
2.1.3 Progress with eradicating backlogs

30 June 2006 30 June 2007 30 June 2008

Required Budgeted Actual Required Budgeted Actual Required Budgeted Actual
Electricity backlogs (GOKWH per month)
Backlogs to be eliminated (number of
households not receiving a minimum
standard of service)
Backlogs to be eliminated (percentage – 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0%
households identified as backlogs/total
number of households)
Spending on new infrastructure to elimi- R36 989 000 R36 808 143 R85 600 000 R85 464 001 R42 555 000 R40 365 000
nate backlogs (R 000)
Spending on the renewal of existing infra- R435 000 000 R124 062 000 R123 184 798 R380 000 000 R144 848 000 R144 855 096 R138 995 000 R138 45,000
structure to eliminate backlogs (R 000)

City of Tshwane Annual Report 2008/2009 //

Total spending to eliminate backlogs (R R435 000 000 R161 051 000 R159 99,941 R380 000 000 R230 448 000 R230 319 097 R960 000 000 R181 550 000 R178 817 000
CHAPTER TWO: Energy and Electricity

000)

pg 27
Spending on maintenance to ensure that R450 000 000 R226 387 882 R 160 466 070 R450 000 000 R195 526 054 R196 581 921 R480 000 000 R220 023 237 R249 625 174
no new backlogs are created (R 000)

2009/06/04 09:12:06 AM
 CHAPTER TWO: Roads and Stormwater

>> 2.2 Roads and stormwater

The Roads and Stormwater Division is responsible for the construction and maintenance of roads
in the Municipality’s jurisdiction, excluding national and provincial roads which fall under the
jurisdiction of national and provincial government departments. The Section achieved the fol-
lowing:

• 77,5 km of roads constructed towards the eradication of backlogs

• 89,8 km of stormwater drainage systems constructed towards the eradication of backlogs
• 51,7 km of roads provided for growth
• 35 km of stormwater systems provided for growth
• 2 927,7 km of surfaced and gravel roads maintained
• 13,5 km of stormwater drains maintained
• Six intersections improved
• 26 bridges rehabilitated
• 100% of projects used local labour
• 1 385 short-term jobs created
• 5 390 traffic signals upgraded and maintained
• R110 617 090 spent on the maintenance of infrastructure

2.2.1 Level and standard of service 2

The following service levels apply:

• Primary or local distributor roads (Classes 3 and 4) constructed to full level of service (7,4
m asphalt and kerbs)
• Class 5 (local roads) constructed to an intermediate level of service (4,5 to 6 m seal/slurry
and edge beam/side drain)
• Full level of stormwater drainage for primary or local distributor roads (Classes 3 and 4)
• Varied levels of stormwater drainage for Class 5 (local residential roads) according to an
approved Council decision-making model

2.2.2 Achievements

The following achievements are worth special mention:

International Road Safety Award

The City of Tshwane was awarded the first prize in the International Road Federation’s (IRF’s)
2007 road safety award drive for a project called “Development and Implementation of Road
Safety Master Plans – an Inclusive Approach”. The award was announced by the IRF on 23 April
2008 at a ceremony in Ljubljana, Slovenia.
2
The Council approved service levels on 25 January 2007.

pg 28 // City of Tshwane Annual Report 2008/2009

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 CHAPTER TWO: Roads and Stormwater

The City of Tshwane’s project focused on the importance of an inclusive approach in the devel-
opment of road safety master plans, incorporating engineering measures, law enforcement ac-
tions, and education and awareness programmes. The project is unique in the following respects:

The road safety master plans enabled the City of Tshwane to identify and focus on vulnerable
road users, such as the youth, the poorer communities and the elderly. Youth and road safety
campaigns were run at schools in collaboration with the Tshwane Metropolitan Police to create
awareness that road accidents are the biggest cause of death internationally among people
between the ages of 10 and 25 years. This is according to a study of the World Health Organi-
sation.

Law enforcement and education programmes of the Tshwane Metropolitan Police supplemented
the road safety master plans and helped to reduce fatalities and serious accidents in the city.

Fatalities and serious injuries from road traffic crashes in Tshwane showed a marked reduction:
a 40% reduction in fatalities between 2002 and 2007, and more than 20% between 2006 and
2007 (from 271 in 2006 to 214 in 2007). The reduction in fatalities among the youth (6 to 20
years) from 28 fatalities in 2006 to 6 in 2007 was especially significant. Also, serious injuries
involving the youth decreased from 238 in 2006 to 206 in 2007.

Launch of the Real Rovers/Serapeng Road

The purpose of this project was to provide an access road of about 0, 96 km between Mam-
elodi East and Nellmapius Extension 6. It includes a road-over-rail bridge to cross the existing
overhead-electrified single railway line. The total contract amount was R19,36 million, and the
project was completed on 30 January 2008. The project spans Wards 18 and 40. With the as-
sistance of two Community Liaison Officers, it was possible to maximise the local labour content
and skills transfer opportunities created by the project. Skills transfer was achieved in respect of
the laying of paving blocks, the construction of a loffelstein retaining wall, the laying of kerbs, the
training of safety officers and the presentation of a safety induction course.

The project has the following benefits for the surrounding community:

• The road provides direct access for the developments south of the railway line to the Mam-
elodi Hospital, which is situated on the corner of Tsamaya Road and Serapeng Avenue.
• It provides improved access to the public transport facilities, schools and sport facilities de-
veloped along the Tsamaya Road Corridor.
• It provides more direct access from Tsamaya Road to the N4 and the eastern suburbs.
• It links the communities on opposite sides of the railway line.

City of Tshwane Annual Report 2008/2009 // pg 29

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 CHAPTER TWO: Roads and Stormwater

Road Safety Campaign at schools

As part of the National Transport Month, October 2007, the Traffic Engineering and Operations
Section launched the Youth and Road Safety Campaign on 1 October 2007 at Solomon Mah-
langu School in Mamelodi.

About thirty schools identified by Ward Councillors were visited during the campaign by officials
of the Traffic Engineering and Operations Section together with Metro Police officers, road safety
officers of the provincial and national government and the Ward Councillors. The officials ex-
plained the importance of safety on the roads to identified learners. Relevant campaign posters
and flyers were also handed out.

2.2.3 Special programmes

Gautrain project
The Roads and Stormwater Division is represented on the Gautrain Working Group relating to
construction work in the Tshwane area. Among others, the division has to approve way-leave
applications for work to be done in the public road reserve, traffic impact assessments, traffic
signalling installations, temporary diversions and a host of other construction activities.

2010 FIFA World Cup™ projects

The Roads and Stormwater Division has a total of 11 projects directly linked to the preparations
for the 2010 FIFA World Cup™. Design work has progressed well, and a number of EIA applica-
tions have already been submitted to the Gauteng Department of Agriculture and the Environ-
ment. R24,4 million of the total estimated cost in excess of R450 million has already been used
on these projects. Construction is expected to start early in the new financial year.

Turnkey projects for the eradication of roads and stormwater backlogs in Soshanguve
Three turnkey contracts were awarded for the design and construction of roads and stormwater
drainage systems in Soshanguve to eradicate the backlogs in the township. The combined total
contract amount is about R134 million, and the construction sites were handed over to the con-
tractors on 1 April 2008.

Although construction work only started in May 2008, R9,3 million (or 7% of the total contract
amount) has already been spent on these contracts.

The contract period for these contracts is two years, but will probably be completed sooner. It is
also the intention to award further turnkey contracts for upgrading roads and stormwater drain-
age systems in Soshanguve during 2009/10, if funds can be made available.

Rehabilitation of sinkholes in dolomite areas

The formation of sinkholes is caused by the erosion of fine subsurface material through water

pg 30 // City of Tshwane Annual Report 2008/2009

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 CHAPTER TWO: Roads and Stormwater

infiltration into cavities that developed in the subsurface rock over long geological periods. The
depths of these cavities and the volume of transported material these can accommodate deter-
mine the size of a sinkhole. The infiltration of water is a natural process, but is accelerated by
development and the failure of service installations.

The amount from the operating budget of 2007/08 spent to rehabilitate sinkholes totalled about
R3,75 million. Fortunately the developments on dolomite land have been identified as a corpo-
rate risk and a procedure has been approved to claim these costs from insurance.

2.2.4 Strategic partnerships

Shova Kalula (Easy Ride) cycle project in Atteridgeville

The Shova Kalula cycle project was initiated as a joint venture between the Department of Public
Transport, Roads and Works (DPTRW) and the City of Tshwane. The project was then devolved to
provincial level and the city entered into a partnership with the DPTRW.
The Department of Transport allocated 300 cycles to the City of Tshwane for the launch of the
project, which took place in Atteridgeville on 29 October 2007, during Transport Month. The
Minister of Transport also attended the launch. The cycles were handed over to learners and
commuters on the day of the launch to stimulate cycle use in Atteridgeville as part of the Shova
Kalula project. The aim of the project was two-fold: to assist needy children in Atteridgeville to
commute to school and to encourage rail commuters to use cycling as a mode of transport to
the stations.

During 2007/08 the city Roads and Storm Water Division constructed a total of 38,8 km of walk-
ways and cycle tracks, of which 18 km was provided under the so-called Ward-based Project.
Part of this is the provision and upgrading of internal roads and stormwater infrastructure in the
three Top 20 townships of Tshwane, namely Soshanguve, Mamelodi and Atteridgeville.

The current project includes the construction of concrete side drains, kerbing, labour-intensive
asphalt surfacing to correct drainage deficiencies and increase the lifespan of the road pave-
ments, and pedestrian walkways on streets in Atteridgeville (six contracts) and Block H, Soshan-
guve (six contacts).

This will provide an improved and safer environment for the community. Local labour is employed
on a temporary basis in terms of the Vuk’uphile principles and the Expanded Public Works Pro-
gramme.

The implementing public body for the project is the City of Tshwane, Roads and Stormwater Divi-
sion, and the total project value is R24 million (R2 million per learner contractor). The site was
handed over on 15 October 2007.

City of Tshwane Annual Report 2008/2009 // pg 31

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 2.2.5 Progress with eradicating backlogs

Annual Report v2.indd 32

pg 32
30 June 2006 30 June 2007 30 June 2008 Planned for 2008/09

//
Required Budgeted Actual Required Budgeted Actual Required Budgeted Actual Required Budgeted
Backlogs to be de-
termined (number of
households not receiving
a minimum standard of
service)
Backlogs to be deter- 0,0% 0,0% 0,0% 0,0% 0,0% 0,,0% 0,0% 0,0% 0,0% 0,0% 0,0%

mined (percentage –
households identified as
backlogs/total number of
households)
Spending on new infra- R101 570 000 R101 225 642 R95 543 026 R145 745 000 R144 895 426 R119 759 199 R314 640 000 R229 075 000 R159 623 987 R229 575 000 R 10 997 500

City of Tshwane Annual Report 2008/2009

structure to eliminate
backlogs (R 000)
CHAPTER TWO: Roads and Stormwater

Spending on the renewal R88 094 000 R87 614 000 R84 802 602 R100 500 000 R91 626 082 R78 046 552 R182 233 000 R232 456 000 R218 661 856 R226 535 000 R35 655 700

of existing infrastructure
to eliminate backlogs (R
000)
Total spending to elimi- R189 664 000 R188 839 642 R180 345 R246 245, 00 R236 521 508 R197 805 751 R523 873 000 R460 531 000 R378,285,843 R456 110 000 R346 653 200

nate backlogs (R 000) 628

Spending on mainte- R180 668 315 R158 323 577 R170 630 R199 357 775 R170 650 664 R169 128 706 R208 184 500 R200 093 000 R211 199 438 R244 120 000 R243 176 000

nance to ensure that no 852

new backlogs are cre-

ated (R 000)
TOTALS: Spending to R189 664 000 R188 839 642 R80345 628 R246 245 000 R236 521 508 R197 805 751 R523 873 000 R460 531 000 R378 285 843 R456 110 000 R346 653 200

eliminate backlogs
TOTALS: Spending on R180 668 315 R158 323 577 R170 630 R199 357 775 R170 650 664 R169 128 706 R208 184 500 R200 093 000 R211 199 438 R244 120 000 R243 176 000

maintenance 852

2009/06/04 09:12:26 AM
 CHAPTER TWO: Transport Planning / Water and Sanitation

>> 2.3 Transport planning

The Transport Development Division has as its vision the development of an integrated transport
system that meets the needs of all people of Tshwane in a sustainable and affordable manner.

Wonderboom Airport, being a municipal airport, experienced further growth in aircraft move-
ment (a record 136 400 movements were recorded for 2007, according to Air Traffic and Navi-
gational Services (ATNS)). All possible attempts were initiated to ensure compliance with the Civil
Aviation Authority’s requirements regarding Wonderboom Airport’s airport licence.

>> 2.4 Water and sanitation

The vision of the Water and Sanitation Division is to be the leading local government provider
of sustainable, high-quality water and sanitation services on the African continent. Its mission
is to add significant value to healthy and prosperous living in Tshwane through the provision of
sustainable water and sanitation services of high quality.

The Division achieved the following:

• 11 168 households were provided with a water service to eradicate backlogs.

• 1 217 households were provided with a sanitation service to eradicate backlogs.
• 918 short-term jobs were created.

2.4.1 Level and standard of service

The City of Tshwane’s water is supplied from external and its own sources. The external sources
are Rand Water and Magalies Water, which in total supply 81,3% of Tshwane’s water. The City of
Tshwane supplies the remaining 18,7% from its own dams, boreholes and springs.

The table below gives a summary of the City of Tshwane’s water supply assets, such as reservoirs,
water towers, pumping stations and water pipelines.

City of Tshwane Annual Report 2008/2009 // pg 33

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 CHAPTER TWO: Water and Sanitation

Table: Water infrastructure

Water supply REGION IN TSHWANE

Southern Central Eastern North North Outside Total
infrastructure
Western East West of Tsh-

wane
Reservoirs Number 24 36 28 15 23 7 133
Total ca- 196 350 630 746 311 155 98 720 269 925 143 200 1 650 096

pacity (kℓ)

Water towers Number 8 1 5 8 4 3 29

Total ca- 3 742 0 1 797 2 680 1 336 868 10 423

pacity (kℓ)

Pumping stations Number 35 8 32 28 7 12 122

of pumps
Pipelines (bulk and Length (m) 1 373 129 1 362 795 2 281 706 1 165 766 2 257 402 314 518 8 755 316

network)
Pipeline networks Length (m) 1 250 908 1 225 694 2 110 942 1 050 614 2 186 803 167 258 7 992 219

Pipelines: bulk Length (m) 121 469 136 777 164 591 109 942 65 384 142 657 740 820

Pipeline schematics Length (m) 752 324 6 173 5 210 5 215 4 603 22 277

Bulk water sources Mℓ per annum (06/07)

Rand Water (internal unit) 193 087
Rand Water (SWA) 24 156
Magalies Water (Klipdrift) 8 908
Temba WTP (Leeukraal Dam) 17 333
Roodeplaat WTP (Roodeplaat Dam) 17 483
Rietvlei WTP (Rietvlei Dam) 14 231
Springs and boreholes 22 885
TOTAL 298 083

Similar to the water supply system, the waste water system consists of a bulk system and an inter-
nal collector system, both of which are the property of the City of Tshwane.

Waste water is discharged to ten waste water treatment works with a combined capacity of 557
Mℓ per day through about 290 km of bulk outfall sewers. The following tables provide a summary
of the waste water treatment works and the sewer system:

pg 34 // City of Tshwane Annual Report 2008/2009

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 CHAPTER TWO: Water and Sanitation

Table: Waste water treatments works capacity

CAPACITY OF THE CITY OF TSHWANE WASTE WATER TREATMENT WORKS

Region Waste water treat- Discharge into Capacity 2006/07

ment works stream or river Mℓ/day % Load (Mℓ/day) Spare capacity

(Mℓ/day)
Southern Sunderland Ridge Hennops 45 8 51 -6
Central Western Daspoort Apies 60 11 40,4 19,6
North East Rooiwal Apies 245 44 155,9 98,1
Temba Apies 12,5 0,3 6,6 5,9
Babelegi Apies 4,7 0,8 1,7 3,0
North West Sandspruit Tolwane 20 4 5,3 14.7
Klipgat Tolwane 55 10 30,3 24,7
Rietgat Soutpan 27 5 10,5 16,5
Outside of Baviaanspoort Pienaars 58 10 34,3 23,7

Tshwane Zeekoegat Pienaars 30 5 39 -9

TOTAL 557,2 100 375,1 182,1

Table: Sewerage system capacity

CAPACITY OF THE CITY OF TSHWANE’S SEWER SYSTEM

Sewer infrastructure Region in Tshwane
Southern Central Eastern North East North West Total

Western
Pump stations Number 16 4 2 9 7 38
Manholes Number 23 536 16 877 36 113 10 987 30 991 118 504
Pipelines Length (m) 1 342 960 1 129 078 2 115 074 710 172 1 704 164 7 001 447
Pipelines: network Length (m) 1 124 425 867 946 1 829 045 482 951 1 420 045 5 724 412
Pipelines: collector Length (m) 167 161 205 497 218 728 117 095 190 628 899 109
Pipelines: bulk Length (m) 50 882 54 683 55 240 109 366 75 169 345 339
Pipelines: schematic Length (m) 492 953 12 062 760 18 322 32 588

As indicated above, the City of Tshwane has a huge water and sanitation infrastructure. The
replacement cost of the water and sanitation infrastructure amounts to R10 647 045 690. It is
therefore of the utmost importance that the existing infrastructure be operated and maintained in
an effective an efficient manner.

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 CHAPTER TWO: Water and Sanitation

2.4.2.1 Free basic water

Free basic water to all was suspended from 1 July 2007 and only registered indigent households
now receive 12 kℓ of water each month free of charge in Tshwane. Altogether 47 774 households
currently receive this service. In financial terms, this means a R21 504 048 cross-subsidisation by
large water consumers or households.

2.4.2.2 Free basic sanitation

Free basic sanitation to all was suspended from 1 July 2007 and only registered indigent house-
holds are now allowed 5,88 kℓ of waste water discharge each month free of charge in Tshwane.
Altogether 47 774 households currently receive this service. In financial terms, this means a R4
925 656 cross-subsidisation by large consumers or households.

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Annual Report v2.indd 37
2.4.3 Progress with eradicating backlogs

30 June 2005 30 June 2006 30 June 2007 30 June 2008

Required Budgeted Actual Required Budgeted Actual Required Budgeted Actual Required Budgeted Actual

Water backlogs (6 kℓ per month)

Backlogs to be eliminated (number 20 263 20 263 20198 15 863

of households not receiving minimum

standard of service
Backlogs to be eliminated (percentage – 0,0% 0,0% 3,6% 0,0% 0,0% 3,6% 0,0% 0,0% 3,6% 2,8%

households identified as backlogs/total

households in the Municipality) (total
households 565 000)
Spending on new infrastructure to elimi- R5 000,000 R3 000 000 R2 925 000 R40 000 000 R28 000000 R27 532 933 R150 000 000 R77 138 398 R77 138 398 R150 000 000 R103 291 736 R87 632 690

nate backlogs (R 000)

Spending on the renewal of existing infra- R20 000 000 R10 000 000 R9 900 000 R60 000 000 R23 000 000 R22 145 000 R90 000 000 R32 000 000 R31 860 448 R100 000 000 R101 061 790 R123 114 528

structure to eliminate backlogs (R 000)

Total spending to eliminate backlogs (R R25 000 000 R13 000 000 R12 825 000 R100 000 000 R51 000 000 R49 677 933 R240 000 000 R 109 138 R108 998,846 R170 000 000 R125 772 236 R109 169 083

000) 398

Spending on maintenance to ensure that R10 000 000 R65 730 000 R65 730 000 R130 000 000 R71 366 000 R80 380 000 R150 000 000 R107 900 000 R134 900 000 R200 000 000 R102 274 403 R111 280 841

no new backlogs are created (R 000)

Opex
Sanitation backlogs
Backlogs to be eliminated (number of 40 570 38 760 38 440 33 012

households not receiving the minimum

standard of service)
Backlogs to be eliminated (percentage – 0,0% 0,0% 7,2% 0,0% 0,0% 6,9% 0,0% 0,0% 6,8% 5,8

households identified (total households

565 000 as backlogs/total households)
Spending on new infrastructure to elimi- R20, 000 R16 000 000 R 5 294 536 R50 000 000 R11 000 000 R10 284 700 R150 000 000 R28 108 065 R28 108 065 R150 000 000 R53 962 614 R47 056 042

nate backlogs (R 000) 000

Spending on the renewal of existing infra- R10 000 000 R4 000 000 R3 800 000 R10 000 000 R3 000 000 R2 700 000 R20 000 000 R9 000 000 R8 600 000 R40 000 000 R34 609 000 R29 418 539

structure to eliminate backlogs (R 000)

City of Tshwane Annual Report 2008/2009 //

R30 000 000 R20 000 000 R19 094 536 R 60 000 000 R14 000 000 R12 984 700 R170 000 000 R37 108 065 R36 708 065 R170 000 000 R61 162 614 R54 256 042
CHAPTER TWO: Water and Sanitation

Total spending to eliminate backlogs (R

000)

pg 37
Spending on maintenance to ensure that R50 000 000 R43 672 898 R39 674 761 R55 000 000 R44 247 532 R41 100 674 R75 000 000 R62 312 309 R58 713 650 R75 000 000 R36 602 957 R40 276 2421

no new backlogs are created (R 000)

2009/06/04 09:12:45 AM
 CHAPTER TWO: Housing / Environmental Management

>> 2.5 Housing

The Housing and Sustainable Development Department achieved the following during 2007/08:

• 36 289 households provided with water through tanker services and stand pipes
• 6 152 new houses built in the municipal area
• 12 000 households provided with water
• 12 006 households provided with flush toilets
• 7 162 stands provided with roads and stormwater drainage
• 11 200 houses provided with electricity
• 6 208 families relocated to RDP houses and serviced stands (limited funds)
• Implementation of the Informal Settlement Management Plan and Land Invasion Manage-
ment Plan – used as a benchmark by the Gauteng Province
• Prevention of mass land invasion and evictions
• 4 149 title deeds registered
• 1 894 title deeds issued
• 5 212 beneficiaries/consumers educated

>> 2.6 Environmental management

Through the Environmental Policy and Resource Management Section of the City of Tshwane won
the coveted Best Performing Metro Prize (R200 000) at the provincial Bontle ke Botho (BkB) 2007
campaign. This prize was also won by the City of Tshwane in 2006. Ward 68 again won the prize
in the Most Sustainable Category (R50 000), and 12 wards won prizes in the Best Performing
Category and four in the Most Sustainable Category. The prize moneys amounted to R670 000.

2.6.1 Parks and horticulture

National Arbor Week

On 30 August 2007 the national campaign was launched in Tshwane. The President of the Re-
public of South Africa, Mr Thabo Mbeki, the Minister of Water Affairs and Forestry, Mrs Lindiwe
Hendricks, the Executive Mayor of the City of Tshwane, Dr Gwen Ramokgopa, the Members of
the Mayoral Committee, and the Councillors of the City of Tshwane launched this year’s Arbour
Week in Ga-Rankuwa. Trees were planted to promote the greening of South Africa.

The event also launched the Plant a Million Trees a Year, a campaign that seeks to accelerate the
Trees for Food Programme.

The focus was to highlight the opportunities for sustainable economic development, community
participation, poverty alleviation and job creation in forestry, and so contribute to growth, devel-
opment and a better life for all.

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 CHAPTER TWO: Environmental Management

Other highlights are as follows:

• The City of Tshwane won a Silver Award at the Garden World Spring Festival in August 2007.
• Another Silver Award was won at the annual Sunday Tribune Garden and Leisure Show in
Pietermaritzburg in October 2007.
• 12 000 street trees were planted on road reserves during the 2007/08 financial year.
• The Urban Forestry emergency team received a Service Excellence Award.
• During the completion of the Top 20 projects, R5 262 336,00 was spent on projects in previ-
ously disadvantaged areas as follows:

Description of application Project/category Cost of project

Saulsville: Township tree planting Environment and Tourism R 857 800
Atteridgeville rotary forest Environment and Tourism R 350 000
Atteridgeville: Erf 4468, Serote Environment and Tourism R 200 000
Atteridgeville: Township entrance, Church and Tlou Environment and Tourism R 350 000
Atteridgeville: Ga-Mothakga Resort Environment and Tourism R 888 151
Atteridgeville: Rehabilitation of watercourse areas Environment and Tourism R 200 000
Mamelodi: Townships tree planting Environment and Tourism R 130 320
Mamelodi: Nelson Mandela Park Environment and Tourism R 150 000
Mamelodi: Moretele Resort Environment and Tourism R 930 000
Mamelodi: Rehabilitation of watercourse and Soutpan Spruit Environment and Tourism R 40 000
Soshanguve: Township tree planting Environment and Tourism R 206 065
Soshanguve: Park Erf 217 Environment and Tourism R 200 000
Soshanguve: Park Erf 720 Environment and Tourism R 200 000
Soshanguve: Park Erf 926 Environment and Tourism R 200 000
Soshanguve: Rehabilitation of watercourse and Soutpan Spruit Environment and Tourism R 400 000
TOTAL R5 262 336

2.6.2 Nature conservation and resorts

The Resorts Subsection manages nine resorts, five caravan parks and two animal farms. Activi-
ties include overnight accommodation, shelters for small functions, barbecue facilities, children’s
play areas, events and refreshments.

At the new Klip-Kruisfontein Resort, R5 349 217 was spent on development. The electrical plan
and the building drawings are still being made. Several draft plans have been discussed and
adjusted, and will be circulated to the

Civil Engineer and health and safety officers for approval. The ring road with parking bays has
been constructed and tarred. The post and rail fence inside the resort on the side of the road is
being erected and the water network is being constructed.

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 CHAPTER TWO: Environmental Management

Development of new Temba/Hammanskraal swimming pool

A new swimming pool for Temba is under construction and the second phase of development
has been completed. During the 2007/08 financial year, R2 183 665 was spent on the site. The
project comprises a new swimming pool complex consisting of a children’s paddling pool, bath-
ing pool, water slide, refreshment kiosk, ablution facilities and offices for personnel.

Upgrading of resorts

Moretele Park
Gauteng Province approved R930 000 for the erection of a new entrance building as part of the
Top 20 project. The building has been completed. The upgrading of the community hall into a
jazz restaurant is in progress. R1 899 052 was spent to continue with projects according to the
master terrain development plan.

Ga-Mothakga Resort
Gauteng Province approved R888 555 to erect three more Kamikaze water slides as part of the
Top 20 project. The water slides were erected and the water pipe work and paving have been
completed. The stormwater flow was also addressed properly. The swimming pool with waterslide
upgrades will be open in the next season.

Construction of self-catering chalets at Rietvlei Nature Reserve

Overnight accommodation has been identified as a need in the self-catering market. The already
approved master terrain development plan for the Rietvlei Nature Reserve made provision for 30
chalets (sleeping four to six visitors at a time). Only two chalets are currently in operation and it
is important to complete the others in time for 2010.

An amount of R5 767 047 was spent to build seven new self-catering chalets, fully equipped and
ready for visitors. The road and the two parking areas for the current chalets were also upgraded.

Promote the learn-to-swim programme

The Swimming Pool Subsection launched swimming development programmes, especially in the
disadvantaged communities. Important role players in communities such as coaches and teach-
ers are given the opportunity to receive proper training to encourage and promote swimming as
a healthy sport and leisure activity in their communities. A total of 2 739 people completed the
training during the 2007/08 swimming season.

Implementation of the Conservation of Agricultural Resources Act (CARA)

The Nature Conservation Subsection manages the natural environment in Tshwane. Progress
has been made in addressing alien plants in the city. Projects are being run in conjunction with

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 CHAPTER TWO: Environmental Management

Working for Water and Working for Wetlands. About R3 000 000 was spent to comply with the
CARA legislation.

2.6.3 Open space planning

Environmental Management Framework for the City of Tshwane’s Zone of Choice

The formulation of the Environmental Management Framework (EMF) for the Zone of Choice
(ZOC) has been completed. This is a joint venture of the City of Tshwane Metropolitan Municipal-
ity and the Gauteng Department of Agriculture, Conservation and the Environment.

The Environmental Impact Regulations (regulations in terms of Chapter 5 of the National En-
vironmental Management Act, 1998 (Act 107 of 1998)) were published on 21 April 2006 in
Government Gazette R385, R386 and R387. These regulations came into effect on 3 July 2006
and make provision for the EMF as a regulatory instruments and decision-making tool.

The main element of the EMF is maps which are provided in a Geographic Information System
(GIS) format that can be queried by users. The official launch of the Zone of Choice EMF was to
be 1 July 2008 and an agreement would be signed between the City of Tshwane Metropolitan
Municipality and the Gauteng Department of Agriculture, Conservation and the Environment.

2.6.4 Environmental resource management

Annual greening of the Pretoria Show

The Environmental Policy and Resource Management Section participated in the Pretoria Interna-
tional Show since 2004, being responsible with other role players for the continued “greening”
of the show, which included: Organising basic environmental awareness campaigns; Reducing
electricity consumption; Introducing water-saving measures; Engaging in waste recycling and
composting; and, Eradicating alien invader plants and planting indigenous trees

Office paper recycling project

The Agriculture and Environmental Management Department (Environmental Management Divi-
sion) implemented a paper-saving and recycling initiative in municipal departments by supply-
ing specially manufactured recycling bins to them. Recycled paper was also distributed so as to
market recycled paper and dispel the myth that this type of paper is not compatible with office
machinery.

Continuous implementation of the Tshwane Integrated Environmental Policy

The Tshwane Integrated Environmental Policy (TIEP) is being implemented in terms of a five-year
implementation plan (the 2006/07 to 2010/11 financial years) which involves the drafting of
environmental strategic documentation (13 documents completed), the implementation of initia-
tives and programmes to achieve 14 environmental targets, as well as continuous awareness and
education activities.

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 CHAPTER TWO: Environmental Management

Among others, a project was implemented to install crushers at depots of the Electricity Division
to dispose of hazardous fluorescent light tubes under controlled conditions and according to
environmental best practices.

Environmental education and awareness

A DVD on the importance and impact of Bontle ke Botho was developed and shown for the first
time during the launch of the 2007 campaign. The DVD indicates some of the successful projects
at ward level and at schools. The DVD shows that it is possible for one to participate and win and
also encourages individuals to work and live a sustainable life. The Councillors received copies
of the DVD and it has also been distributed to schools and NGOs to use as an educational tool.

Trees for Homes celebration

The Trees for Homes event at Bochabelo Park in Mabopane Ward 22 celebrated the distribution
of 400 trees. The trees were donated by the Total Facilities Management Company through Food
and Trees for Africa. The Department of Water Affairs and Forestry (Regional Office) donated
100 trees to 500 low-cost houses next to Odi Hospital.

National Clean-up Week, 10 to 14 September 2007

The call to clean up our schools, streets, rivers, lakes, parks, open spaces and households went
out far and wide. Schools, municipal officials, companies, Councillors, environmental groups
and individuals of Tshwane responded by participating in clean-up campaigns. The Walter Si-
sulu Environmental Centre in Mamelodi went one step further with volunteers from the centre
joining several of the clean-ups and also organising educational programmes for learners from
various schools. These included the J Mahlangu, J Kekana, Morakoma, Moretele, Mveledzo,
Sindawonye, Tlakukani, Lehlabile and Somafco schools. Two of the schools participating in the
educational programme also participated in cleaning along the Moretele River. The learners had
an opportunity to investigate the effect of pollution on the river. Sadly, as is always the case, the
amount of rubbish littering the stream and the surrounding area was astonishing. Learners had
some interesting finds: sewage waste, dead carcasses, builder’s rubble, eroded soil and invader
plants.

Cemeteries
Two newly developed cemeteries were officially opened on 22 February 2008, namely Honing-
nestkrantz and Hatherly. These two cemeteries, situated in the north and south-east of Tshwane,
will alleviate the demand on Heatherdale, Soshanguve and Mamelodi cemeteries. The two new
cemeteries will also accommodate 1,5 m high headstones only and not the full monumental
masons. Promoting the green building concept will be the order of the day at the cemeteries.

Social package
One of the key aims of the City of Tshwane was to develop an Indigent Burial Policy to assist
destitute families, especially those without sufficient resources, to conduct burials/cremations for

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 CHAPTER TWO: Waste Management / Sports and Recreation

their own family members. Therefore, it will assist them to bury their family members in dignity.
The cost of this social package is carried by the City of Tshwane Cemetery Services.

>> 2.7 Waste management

The following projects were carried out by the Waste Management Division:

• The recycling projects were extended.

• The Marketing Section achieved the target of R20 million in March 2008.
• A function was held at the Mercedes Benz premises to hand over 20 Cosecos and 10 Cub
Meter collection trucks.
• Cleaning was done at the Pretoria Show. During the ten-day period of the show about 19
ton of waste was recycled.
• Permits have been issued to all landfill sites.
• The fine schedules were developed.
• Law enforcement resulted in the following:
- 42 court cases were opened on illegal dumping and illegal distribution of pamphlets.
- 700 contravention notices were issued for illegal dumping and overgrown vacant stands.
- 80 contravention notices on pamphlets were issued.
- 117 spot fines were issued, amounting to R25 000.
- 50 warrants of arrest were authorised by the Rondalia Court.
- 5 law enforcement operations were conducted, involving Peace Officers and the Metro
Police.
- 374 fines amounting to R285 000 were issued on illegal dumping.

Level and standard of service 3

• Full service levels (ie kerbside collection of 240 ℓ or 85 ℓ bins) apply in proclaimed townships
and metropolitan activity nodes for developments within a 20 km radius.
• The 85 ℓ bins are to be replaced by the 240 ℓ service over the next five years in a phased
manner.
• Basic and intermediate service levels in combination apply to informal (un-proclaimed) ar-
eas (ie provision of communal skips and plastic bags).

>> 2.8 Sport, recreation, arts and culture

2.8.1 Sport

The City of Tshwane is one of nine host cities for the 2009 Confederations Cup and the 2010
FIFA World Cup. To date, the focus, according to FIFA requirements, has been on the stadiums,
with other infrastructure projects in the planning phase. Loftus Versfeld Stadium has been ear-

3
The council approved the service levels on 25 January 2007.

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 CHAPTER TWO: Integrated Community Development

marked as the match venue for both events. The match venue and three training venues are all
being upgraded.

The detailed Loftus precinct plan was put together and presented during the FIFA inspection in
February 2008, resulting in requests for a few minor changes. Traffic management plans, polic-
ing models, disaster management plans, transport routes and the like are progressing well.
For the venue to meet FIFA requirements, a number of improvements have to be made by Octo-
ber 2008. The three training venues (Super Stadium in Atteridgeville, HM Pitje Stadium in Mam-
elodi and the Giant Stadium in Soshanguve) are being developed to FIFA’s standards to ensure
that world-class facilities are provided in the underdeveloped parts of Tshwane.

From the 2006/07 to the 2007/08 financial years, the following three new sport and recreation
facilities were completed and are currently operational: KT Motubatse Centre in Klip/Kruisfon-
tein; Nellmapius Community Centre; and, Akasia Multipurpose Centre. One new soccer field
was also constructed at the Pretoria North Sport Ground.

2.8.2 Culture

During the 2007/08 financial year the following events were presented by Library and Informa-
tion Services: Hosting of the international IFLA (International Federation of Library Associations)
pre-conference dinner; Opening of the KT Motubatse Library (Soshanguve); National Library
Week; and, Library Reading Awards

Two additional ABET centres were established at Olievenhoutbosch and Stanza Bopape, and
an additional 50 learners benefited from this. Learners were invited to attend some Council
meetings. In addition, two other projects were carried out. These were the Reading Awards com-
petition and the Take a Girl Child to Work in collaboration with telecommunications company,
Cell C.

>> 2.9 Integrated community development

2.9.1 Indigent households

In December 2007 a service provider was appointed to undertake registration of indigent house-
holds and the evaluation of the existing indigent household database. The City of Tshwane also
launched a marketing campaign to encourage mass registration of such households. 17 100
new indigent households were verified. The Indigent Policy was reviewed in the 2007/08 finan-
cial year, and the review included a public participation process and inputs from stakeholder
departments.

The implementation of the Indigent Policy has had the following impacts: Financial relief among
identified poor families after their arrears had been scrapped; Continued access by poor families

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 CHAPTER TWO: Integrated Community Development

to free basic services, which include 100 kilolitres of water and 12 kilowatt of electricity; and,
Contribution to the reduction of poverty among the poorest of the poor in Tshwane.

2.9.2 Early childhood development

Eighty (80) Registered Early Childhood Development (ECD) Centres throughout the city, mostly
operating as backyard crèches located in the underdeveloped areas, were funded by City of Tsh-
wane in 2007/08 with an average of 7 000 children. Each ECD centre was granted R100 000,
00 totalling R 8 000 000,00 disbursement in this financial year.

The impact of this ECD funding has been: improved learning environment for children through
provision of additional educational toys; capacity building through the provision of certificated
training for Educators and Care-givers; additional new and better facilities provided through
provision of financial resources; and, nutrition augmented by the creation and sustenance of
food gardens.

Four hundred and forty five (425) community members were trained in ECD practitioner courses.
A five-year Integrated Childhood Development Strategy (ICDS) to guide departments and city-
wide organisations to create a child-friendly city was approved by council.

2.9.3 Mainstreaming of vulnerable groups

The city seeks to ensure the implementation of programmes meant to ensure the mainstream
inclusion into society of the youth, women and people living with disabilities and the elderly, with
the express purpose of decreasing their vulnerability.

Some of the projects initiated in order to advance the development of vulnerable groups by
implementation of projects include: 60 projects for Women implemented to date; 50 projects for
Youth implemented to date; 60 projects for Elderly implemented to date; 30 projects for Children
implemented to date; and, 45 projects for People Living with Disability implemented to date.

Ten NGOs focusing on older persons were funded by City of Tshwane. Another ten NGOs were
funded focusing on people with disabilities. A Poverty Reduction and Community Development
Conference was convened attracting the participation of more than 300 delegates from govern-
ment, agencies, private sector, and civil society and research institutions.

The aim was to develop a strategy and an implementation plan towards alleviation of poverty in
the City, to make an impact on indigent exit programme and establish an advisory structure to
input on the realisation of the objectives contained in the Strategy and Plan. A Declaration was
adopted that commits all stakeholders to play a role in the war against poverty.

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 CHAPTER TWO: Health

With regards to youth development a Five-Year Youth Development Programme was completed
and its implementation is underway. Working with the Interim Youth Advisory Council (IYAC), a
By-Law on the establishment of Tshwane Youth Development Unit (YDU) was approved by Coun-
cil and an Operational Framework was completed with a start up budget of R1,7 million for the
next financial year. The City of Tshwane was also awarded for the 1st Gauteng Golden Circle
Award for Best Municipality on Youth Development.

>> 2.10 Health

Level and standard of service

• Number of professional nurses per 100 000 of uninsured population is 20 and the Depart-
ment managed to adhere to the norm
• Percentage implementation of identified Environmental Health functions prescribed by the
National Health Act for municipal health services is 35 and the Department could only man-
age to achieve 25% because of insufficient funds to appoint staff.
• Number of environmental health practitioners per 15 000 of population is 0.45 and the
Department could only manage 0,31 due to insufficient funds to appoint staff.
• The national norm for the utilisation rate for the clinics is 2,8 and the Department over-
achieved with regard to children under 5 by posting a 3,5 utilisation rate and under-achieved
with regard to adults where it posted a 1,7 utilisation rate.

2.10.1 Primary health care

• 1 176 943 Patients were treated in clinics in 0708, which is 4% more than in 06/07
• 52% of the LG clinics have extended their normal service hours from 7:00 to 16:00 week-
days to include Saturdays from 08:00 – 13:00 since May 2008
• The District Health Council was launched on 14 February 2008.
• Completed Capital Projects for Health Care:
- Extension of Stanza Two Clinic (multi-year project with construction phase in 08/09). R1,3
million spent in 2007/08.
- Extension of Lotus Garden Clinic (multi-year project with construction phase in 08/09)
R1,4 million spent in 2007/08
- Upgrading of clinic dispensaries for R1,9 million
• The clinics implemented a Tuberculosis crisis plan to combat TB in Tshwane with improve-
ment of the TB cure rate from 61% to 69,4%
• The clinics maintain the immunisation coverage in Tshwane at 95%
• The annual rating survey indicated that clients in clinics are 90% satisfied with the clinic en-
vironment and 84% satisfied with the quality of care of health professionals
• Medicine availability level in clinics was above 99%
• Vaccines were 100% available in clinics at all times
• A Tshwane Model for the provisioning of Pharmaceutical Services in clinics was developed,
which are the first in the country

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 CHAPTER TWO: Health

2.10.2 Municipal health services (environmental health)

• National Arbour Day (September 2007), World Food day (October 2007), National Water
week (April 2008) and World Environmental day (June 2008) were celebrated with commu-
nity events all over Tshwane.
• The Environmental Health by-laws were reviewed with public participation.
• The fines system relating to Environmental Health legislations has been approved and is
implemented.
• The tariffs for Environmental Health Services as approved by council have been implemented.
• Alignment of the Gautrain route is now included in the noise management system of Tsh-
wane.

2.10.3 Emergency medical services (ambulances)

• The Emergency Medical Services treated and transported 60843 patients in comparison with
the 2006/07 budget year of 53 621 patients
• 72 Special standby services were attended by the ambulance services this year in compari-
son of the 67 in the previous budget year
• The average time taken to respond to an emergency call for priority one calls according to
the set GPG norms and standard improved from 65% to 83%
• The calls and standbys were attended to by 26 ambulance supported by a number of vol-
unteers

2.10.4 HIV and Aids

• The Tshwane Aids Unit has continuous programmes in all areas. Some of the highlights are
focused along the main events during each year, comprising:
o Candle Lighting Memorial event during the month of May 08
• World Aids Day (Door-to-door campaign and the main event) during December 2007.
A total of 106 048 houses, plots, factories and farms were visited; 348 352 people were
reached; 526 930 condoms were distributed; while 2 465 referrals to various services were
made.
• Support groups have been established in the vicinity of 18 of our clinics where HIV positive
clients could be referred for continuity and support.
• The Workplace Programme for Tshwane Employees:
- HIV and Aids Peer Educators were trained bringing the total to 350 employees trained.
- Peer Educator Seminars were held and well by the Peer Educators.
- An HIV and Aids Employee Support Programme is in place rendering VCT services,
Counselling services, a Disease Management Support service as well as a 24/7 Health
Helpline to all employees.
• Exhibitions were staged at various events held in different parts of Tshwane, for example

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 CHAPTER TWO: Community Safety

the Candle-lighting memorial services; events commemorating Condom Week and Youth
Month. Exhibitions were also held at schools, Taxi Association and at the malls. A total of 3
024 people were reached through the exhibitions
• Capacity building programmes regarding HIV and Aids were rendered for different catego-
ries for women, youth, and people with disabilities, commercial sex workers, men and im-
migrants. 2 822 People attended the information sessions on HIV and Aids, 7 799 residents
of Tshwane attended the HIV and Aids events and 511 residents are formally trained in ses-
sions. Tshwane Aids Unit appreciates the participation of other role players. The City of Delft/
Tshwane sister relationship benefits Tshwane by means of a joint project to empower youth
with life skills to deal with the challenges of HIV and Aids.
• The Foundation for Professional Development and the City of Tshwane signed an MOU on
the development of an HIV Mapping Project which will assist members of the community and
service providers to access HIV and Aids services in Tshwane
• NGOs funded to render services: the seven NGOs awarded grant funding to render HIV and
Aids-related services are completing the projects by 30 June 2008
• The Tshwane Aids Strategy 2007 – 2011 was approved by the Council on 29 November
2007

>> 2.11 Community safety

Community Safety Services offered by the City of Tshwane include fire services, disaster manage-
ment and metropolitan policing. Fire and disaster management services are governed by service
delivery standards, which determine response times which influence facility and fleet positioning.

2.11.1 Tshwane metropolitan police services

General

• Finalisation of the ASD structure, completion of the migration and placement process and
realigning the current eight regions with the five of the city.
• Further expansion of the TMPS with the appointment of an additional 350 recruits during the
first quarter of 2008.

By-law policing

• In terms of By-law Policing, the City of Tshwane by-law pertaining to municipal functions
relating to substance abuse in the City of Tshwane was approved by Council on 29 May
2008 (awaiting publication in the Provincial Government Gazette). The public participation
for the by-law took place during June 2007 to August 2007 and extensive comments were
obtained. The by-law is the first of its kind in South Africa and outlines ways in which the
Municipality can contribute towards the fight against substance abuse.

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 CHAPTER TWO: Community Safety

• The By-law Policing Directorate also embarked on joint operations with role-players such as
the SAPS, Municipal Health Services and Fire Brigade to target places of entertainment and
other businesses as a contributor to crime prevention.
• Council approved the establishment of a By-law Enforcement Centre (BEC) by 30 June
2008, as a means of streamlining by-law enforcement in the City of Tshwane. The establish-
ment of the BEC will be the first of its kind.

Crime prevention

• Launch of the Peace and Development Project (PDP) in Central West Atteridgeville
• Allocation of funding for rollout of PDP Tshwane (South, North East, Central West)
• Advertising and recruitment of 345 PDP warden positions Tshwane
• Establishment of Community Marshals Stinkwater

Road policing

• The finalisation and upgrading of Walton and Centurion weighbridges

• The implementation of these weighbridges (which will assist law enforcement actions) will
assist in reducing the road infrastructure maintenance costs which is cause by the overload-
ing of motor vehicles. (cost of overloading of vehicles in Tshwane is estimated at R64 m per
annum)
• The City of Tshwane won the 2007 Road Safety Award of the International Road Federation
on 23 April 2008. The reward was for a project named “Development and Implementation
of Road Safety Master Plans - an inclusive approach” which stresses the importance of engi-
neering measures, law enforcement, education, awareness and evaluation.

2.11.2 Disaster management

Disaster management frameworks and disaster risk management plans are the strategic mecha-
nisms through which disaster risk management action is co-ordinated and integrated across all
spheres of government.

• A disaster management framework for City of Tshwane has been developed and a public
participation process will be conducted.
• A macro risk assessment for City of Tshwane has been executed and the results included in
the Disaster Risk Management Plan for City of Tshwane.
• Planning Forums for the development of generic contingency plans took place with the vari-
ous departments who have a responsibility in terms of disaster management.
• An awareness campaign was launched in Atteridgeville to make children aware of the dan-
ger of unexploded ordinances.
• The Disaster Management Centre played an important role in the coordination of the disas-
ter response to flood incidents in Tshwane during January 2008 and also the aftermath of
xenophobia during May and June 08.

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 CHAPTER TWO: City Planning

2.11.3 Fire brigade services

• With regard to operational responses this Section is meeting its objectives and deadlines,
although it is still experiencing an operational staff shortage. This shortage is also evident in
the Fire Safety Section. A new status report will reflect the actual staffing values during the
1st quarter report for 2008/09.
• One water tanker, one hazmat support unit and two rescue Pumpers were ordered and have
been delivered as part of the vehicle replacement programme.
• The Fire Safety Section performance is corroborated by the reduction in significant fire inci-
dents and losses incurred.
• Fire Safety objectives are being met and definite success is being achieved with the identifica-
tion and management of unsafe (bad) buildings.
• A third Fire Protection Association has been formally established.
• The Fire Brigade By-laws continue to improve our capacity to enforce regulations and codes
of practise and to manage violations forcefully.

>> 2.12 City planning

The Metropolitan Planning Section finalised the Tshwane Spatial Development Strategy: 2010
and Beyond. The purpose of the Strategy is to provide spatial guidance for the five -year pro-
gramme (IDP).

The Tsosoloso Programme was conceptualised to improve the quality of life in marginalised ar-
eas as well as to create more economic development opportunities for the local communities. A
submission to National Treasury for funding of the programme was submitted in May 2006. The
programme has been accepted by National Treasury. Tshwane was subsequently selected as a
“strategic ally” by the National Treasury. Funding amounting to about R 17 million for technical
assistance has been approved and is seen as the first phase of achieving the goals set for the pro-
gramme. A position for a full time Tsosoloso Programme Manager has been approved and will
shortly be filled. In addition, a team of external technical experts will be appointed on a project
management basis to deliver turnkey (planning to construction) assistance.

Other projects that were finalised by the Metropolitan Planning Section during 2007/08 were:

• Tshwane Vacant Land Database in conjunction with Regional Spatial Planning and Environ-
mental Planning
• The Tshwane Inner City Cultural Circle concept
• The Master Plan for the redevelopment of the Pretoria Station Precinct is co-ordinated by
Metropolitan Planning. Other partners are Intersite, Bombela (Gautrain) and Re Kgabisa
Tshwane.
• The Planning of the Mamelodi Magistrates Complex at Eerste Fabrieke Town Centre is com-

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 CHAPTER TWO: City Planning

pleted and the construction of the court will commence in August 2008.
• The Township Establishment of the Eerste Fabrieke Town Centre is far advanced and should
be finalised early in 2009. The Proposal Call to invite development partners from the private
sector should go out by October/November 2008.
• Planning inputs are provided for the 2010 FIFA World Cup precinct planning and City Beau-
tification project.
• A report dealing with the identification of sites for the Tshwane Jazz Precinct and Memorial
• The final draft of the Hatfield Spatial Development Framework is completed and is awaiting
the inputs of the traffic study for the area before being submitted to Council.
• Tshwane Rural Development Strategy
• Assisting with the allocation of land use rights in terms of the new Tshwane Town Planning
Scheme to properties in the North West that previously did not have land use rights (zonings)
• The finalisation of the Tshwane International Convention Centre proposals was submitted to
Council in May 2008.
• The Tshwane Household Survey has been completed and the results thereof will be published
shortly.

Cartography, a sub-section of Geomatics (Department City Planning, Development and Region-

al Services) participated in the GIMS Map Competition as part of the annual GIMS User Confer-
ence held from 1-3 October 2007. The cartographic team won the “Content” category, for the
map named “City of Tshwane Eastern Region”. This map is one of five designed to visualise the
new administrative regions, which indicated:

• Various boundaries including wards, suburbs, etc.;

• Transportation networks;
• Hydrograph features;
• Generalised land use cover; and
• Points of Interest

Building and zoning plans

Annual total July – Sept Oct –Dec Jan – March April – June Annual total
STATISTICS
2006/07 2007 2007 2008 2008 2007/08
Building plan applications 22 421 6 361 4 177 4 042 5 180 19 760
received
Building plan applications ap- 17 602 5 143 3 410 4 250 3 230 16 033
proved
Building plans outstanding 4 819 1 218 767 -208 1 950 3 727
Approved construction area 3 043 433 852 612 726 665 676 188 745 525 3 000 990
( M2 )
Approved construction value 10 3 789 3 759 3 279 653 3 639 112 14 468
(R) 652,015 663 100 759 750 350 250 188 450
500

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 CHAPTER TWO: City Planning

Building plan applications outstanding (backlog)

Applications No of new ap- Total value of new Applications

outstanding plications received applications received outstanding 4
1 July 2007 2007/08 R’000 30 June 2008
7 091 19 760 14 468 189 10 818

Building plan applications approved, July 2004 to June 2008

25 000

20 000

15 000
21, 494

17, 602

16, 033
15, 031

10 000
2004/2005

2005/2006

2006/2007

2007/2008

5 000

The Land Use Legislation and Application Management Section are responsible for the man-
agement and maintenance of the Town Planning Scheme(s) within the jurisdictional area of
Tshwane. The Draft Tshwane Town-planning Scheme, 2007 was approved by the Council in
November 2007.

The Draft Scheme was amended in March 2008. This entailed that the existing six town-
planning schemes previously applicable in the jurisdictional area of Tshwane as well as other
townships that were approved in terms of other legislation, was replaced by one single town
planning scheme.

4
(Applications outstanding 1 July 2008 + New applications received) – Building plan applications approved

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 CHAPTER TWO: Economic Development

Land use applications received and finalised in 2007/08:

Type Received Finalised

Quarter 1st 2nd 3rd 4th Total 1st 2nd 3rd 4th Total
Consent uses 150 140 98 116 504 107 128 101 82 418
Simultaneous consent uses and removal 32 18 20 31 101 17 19 18 16 70
of restrictions
Subdivisions 84 72 62 44 262 62 86 70 52 270
Consolidations 37 35 17 36 125 14 20 20 24 78
Simultaneous subdivisions and consoli- 10 11 6 7 34 2 4 7 4 17
dations
Divisions 11 10 9 10 40 13 9 9 7 38
Removal/amendments/consent of 0 1 0 0 1 0 1 0 0 1
restrictive conditions
Rezoning 228 190 145 179 747 127 117 140 130 514
Township establishment 22 20 12 10 64 37 31 33 45 146
Amendment after approval of township 6 15 9 9 39 39 15 23 4 81
Closed/withdrawn 0 0 0 0 0 252 132 107 118 609
1 911 2 242

Regional services

The five regions as identified in terms of the ASD process were established and four of the five
Regional Executive Directors were appointed. The scoping of the regions is in various stages of
completion and is deemed of critical importance to determine the needs of the different com-
munities of the city.

>> 2.13 Economic development

2.13.1 Local economic development

Tshwane International Trade and Infrastructure Investment Conference (TITIIC):

The inaugural Tshwane International Trade and Infrastructure Investment Conference (TITIIC) was
hosted by the Local Economic Development Division on behalf of the City of Tshwane from 28
to 30 May 2008 at the Tshwane Events Centre. The event was a result of a collaborative effort
between several Departments to position the City as a preferred tourism, trade and investment
destination in South Africa through showcasing inherent economic opportunities, natural scenic
endowment as well as to share the City’s future development plans with strategic stakeholders.
The conference attracted several national and international delegates and speakers from Cana-
da, USA, UK, Brazil, Botswana, as well as representatives from UNIDO, IEDC, National Treasury,
SADC Chamber of Commerce, Gauteng Provincial Government, HSBC Africa, Blue IQ and the
DTI amongst others. The 2008 TITIIC successfully attracted 572 delegates who actively partici-
pated in respective plenary sessions and 38 exhibitors from the creative industry sector, automo-
tive industry sector to infrastructure development stakeholders.

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 CHAPTER TWO: Economic Development

Sector development
Automotive development Sector Development: City of Tshwane through the Local Economic De-
velopment Division maintains a visible presence in the Rosslyn Auto Supplier Park to strengthen
the interface with key stakeholders. As a result of this engagement, the following investments
have been generated and others are in the pipeline into the City:

Direct investment by Ford Motor Company

The Ford Motor Company (FMCSA) has invested R1, 65 billion since 2000 and pays about R20
million in utilities to the City of Tshwane. The annual spend on non-production for BEE suppliers
amounts to R3,5 million and for production purposes spending is R5,5 million. South Africa is
on the short list for a major new investment by Ford Motor Company worldwide (ie T6 business
contract), and it is envisaged that an initial additional investment of R670 million will be made
in the Silverton facility . This investment would result in the number of vehicles produced and
exported varying between 60 000 to 90 000 units per annum, and the number of employment
opportunities is envisaged to increase by a further 500. This investment will have other multiplier
effects such as benefits that will be derived from the supplier development through a mini BEE
Supplier Park planned to be adjacent to the FMCSA plant in Silverton.

Direct investment by TATA Motor Company

The TATA Automobile Corporation recently purchased the old Nissan Diesel plant in Rosslyn for
R32 million. The intention is to commence assembly and manufacture of TATA vehicles during
the last quarter of 2008. Besides the envisaged commercial vehicle plant to be established in the
old Nissan Diesel plant in Rosslyn, a plant in William Hoy Street Rosslyn has also been purchased
and commissioned by the company. The entire project, inclusive of the still to be commissioned
commercial plant located in the old Nissan Diesel plant in Rosslyn, as well as the established bus
and truck plant in Rosslyn, has the potential of creating employment for 1 000 persons directly
and for 3 300 persons indirectly. The total initial investment in both initiatives will exceed R725
million.

Direct investment by Nissan South Africa

NISSAN Diesel South Africa is investing R11,9 million in its Rosslyn plant to cater for a greater
demand in commercial trucks. The company expects total demand for commercial trucks during
2008 to be in the region of 36 000 of which it is hoped 4 800 will be NISSAN Diesel trucks.
The plant in Rosslyn has the capacity to produce 6 000 units per annum from a semi-knocked-
down basis. With the R11, 9 million investment injection, this will be pushed up to 9 000 units.
Besides the mentioned investment, the company also plans to invest a further R8 million in its
operations to cater for the new NISSAN Diesel QUON Series of trucks. This Series is expected to
be launched in the local market later in 2008.

The above initiatives reaffirmed the City of Tshwane position as a key economic player in the
province and also highlighted the importance of a more integrated approach to local economic

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 CHAPTER TWO: Economic Development

development between stakeholders at national and provincial government in conjunction with

City of Tshwane through the development of integrated economic development strategies that
transcend all spheres of government and private sector stakeholders.

2.13.2 Agriculture

Owing to the approval of the ASD model for the City of Tshwane on 26 September 2007, which
led to the restructuring of the Departments and migration of functions across Departments the
Agriculture Division was formed within the Agriculture and Environmental Management Depart-
ment. Performance highlights of this Division are as follows:

The Department of Agriculture and Environmental Management applied for funds from the Re-
structuring Grant savings from the 2006/07 financial year and was granted permission to use
the funds to support Cooperative. The following cooperatives received support during the period
of review:

Name of Cooperative Funding

Winterveld Citrus Project R2 000 000
(NB, a separate report has already been submitted as approved by the portfolio Committee
of 3rd May 07)
Vukani Women Corp R50 000
Tivhusheni Soshanguve Vegetable produce cooperative/Klipkruisfontein R50 000
Morula Project R100 000
Mamelodi Vegetable Production cooperative R50 000
Legae Pele Castor Oil Cooperative R100 00000
Basiamang Women and Youth Agric Cooperative R100 000
Dikololo Women and Youth cooperative R 50 000
Total R2 500 000

Winterveld Citrus Project

The Winterveld Agricultural Project (Winterveld Citrus Project) is one of the successful flagship
projects within the City of Tshwane. The project celebrated its third harvest on 14 July 2007. it
was established in July 2002 and created an estimated 455 jobs and empowered around 2 275
family members. During the past four years, 43 000 citrus trees were planted. The project won
the 2006/07 Impumelelo Star Award.

Women in Cooperatives, 18 August 2007

The City of Tshwane Department of Agriculture and Environmental Management in partnership
with the Department of Economic Development held a ‘Women in Cooperatives workshop’ on
18 August 2007. The purpose of the workshop was to empower women through cooperatives in
the sectors of Agriculture, Environment, Housing and Creative Industries. The workshop was held
at the African Window National Cultural History Museum. The workshop was attended by 350
women who are involved in environmental and agricultural cooperatives.

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 CHAPTER TWO: Economic Development

Household Food Security and Poverty Alleviation Programme

This programme is a joint effort between local government and the Provincial Department of
Agriculture Conservation and Environment. The programme was initiated in 2004. The project
aims at alleviating poverty and promoting nutrition of the most vulnerable families.

The project is rolled out in the form of homestead food gardens and uses the family’s own yard
as a production site. Identified families are given starter packs, training and technical support.
The target for three years which is the envisaged lifespan of the project is 9 000 families.

2.13.3 Fresh produce market

The Fresh Produce Market Division has the following key performance areas: trading infrastruc-
ture and operations; trading operations support services; and, market system development.
The Tshwane Market is the second largest fresh of the 19 fresh produce markets in South Africa.
A cumulative turnover of R1 415 000 for the financial year ending 30 June 2008 is expected to
be realised (2006/07: R1 169 000). This represents a growth rate of 21,05% on the previous
financial year, whereas industry growth for this period was 16,93%.

The Tshwane Market achieved the second highest growth rate of the four biggest national mar-
kets. Market share increased from 17, 63% in the 2006/07 financial year to 17% and 97% in
the 2007/08 financial year. Produce sold for the 2007/08 financial year amassed to 493 408
ton and declined by 3, 01% compared to the previous financial year. Although the market expe-
rienced a decline in mass, it still performed better than the industry as a whole, which declined
by 8, 72%.

The Tshwane Market plays an important role in the creation of jobs in the city. Over and above
the current 1 382 permanent jobs, many more jobs are created upstream and downstream as a
result of the activities of the market.

A market segmentation study in 2007 indicated that the informal sector’s purchases represents
35% of the market’s annual turnover and equates to purchases of about R566 million (2007/08).
The Tshwane Market consistently achieves an operating surplus and is therefore self-sustainable.
An operating surplus of at least R23 million is expected for the 2008/09 financial year. It is also
noteworthy that all capital expenditure is funded from the operating surplus for the financial year.
This lessens pressure on the Municipality to fund the Tshwane Market’s projects through external
loans.

After a lengthy process which included extensive consultation with the public and role players, the
new Market By-law was promulgated in June 2008.

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 CHAPTER TWO: Economic Development

2.13.4 Tourism

Tshwane Tourism Awards Programme 2007

The programme acknowledged and rewarded service excellence in the Tshwane tourism industry.
Tourism products were assessed in their respective categories by Qualified Assessors in coopera-
tion with the tourism industry. The Tshwane Tourism Awards recognise service excellence within
the Tourism industry in Tshwane. The Gauteng Tourism Authority recognises the awards as a
benchmark for best practice within the tourism industry in the Gauteng Province.
The Tshwane Tourism Awards Gala event took place on 11 April 2008 at the South African Re-
serve Bank, where winners of the various categories of the Awards Programme were recognised
with awards and certificates.

Tourism Indaba 2008

A record number of 12 900 delegates attended this year’s show, of which 603 were media.
Indaba took place from 10 to 13 May 2008 at the Nkosi Albert Luthuli International Convention
Centre in Durban. The City of Tshwane exhibited at the Indaba.

Township Bed and Breakfast grading

The project is geared towards facilitating the development of SMMEs in the tourism sector by
supporting emerging Bed and Breakfast establishments in Tshwane that offer a cultural home
stay experience. The Tourism Division in partnership with the Tourism Grading Council of South
Africa and the Bed and Breakfast Association in Tshwane have identified 81 Bed and Breakfast
establishments for grading. All the 81 establishments have undergone a process of assessment
by grading council assessors and most of these establishments will have been graded by the end
of the process.

Training and Skills Development

The Tourism Division identified and facilitated the training of 15 SMMEs with operational busi-
nesses in tourism. The training consisted of 8 toolkits that were developed by the Tourism En-
terprise Programme (TEP) and were presented by the authors and other industry experts. The 8
category winners of the Tshwane Tourism Awards also received training in those modules that
would assist in equipping them to exhibit their products and services at exhibition platforms such
as the Tourism Indaba. The database of SMMEs at the Tourism Division will be used to identify
SMMEs for training in the 8 toolkits as an ongoing process.

2.13.5 The SMART City Programme

A SMART city is defined by: a knowledgable workforce; broadband connectivity and innovation;
and, a marketing and lobbying force. The goal of the SMART City programme is to facilitate the
implementation of projects that stimulate economic development.

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 CHAPTER TWO: Economic Development

The City Development Strategy has identified the Smart City Project as one of the important
catalysts to transform the City into a more efficient and competitive city not only in South Africa
but in Africa. A number of “smart projects” were identified as a result of the Digital Hub project
that was undertaken to “pilot” usage of ICT’s to deliver key service delivery projects such as
“Automatic Meter Reading”, Provision of Broadband access to communities that had no access
to the internet and so forth.

The SMART City will focus on the following economic development clusters:

To deliver on the SMART city programme the City of Tshwane has embarked on the following
strategic partnerships:

• The Innovation Hub

• The Innovation Hub as a strategic partner in Gauteng will be helping the City of Tshwane
Smart City Project team with technical support on the development of smart city projects.
• Blue IQ
• The City has signed an agreement to work with the B-Link team under the Blue IQ to ensure
alignment with the B-Link and G-Link initiatives with Provincial and Central Government ICT
initiatives (e.g. Blue Umbrella)
• City of Oulu
• Oulu in Finland is a remarkable city, as it has managed to reinvent itself from a city relying
on primary industries, such as fishing and forestry, into a high-tech region within the space
of a few decades.

>> 2.14 Corporate Services

Human Resource Development Section

The approved Human Resources Development Strategy is being implemented on an ongoing
basis and the following achievements are of note:

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 CHAPTER TWO: Finance

• A total number of 8078 individuals were trained in terms of skills priorities excluding OITPS
training.
• Learnership programmes and apprenticeship programme were implemented of which the
details are reported in the template.
• The Leadership and Management Academy was launched at Premos.
• In partnership with the School of Public Management of the University of Pretoria, a success-
ful Local Government Conference was hosted.
• The Middle Management Development programme for Metro Police was completed by 24
learners and a successful certificate function in partnership with the University of Pretoria
took place at Premos.

>> 2.15 Finance

The Financial Services Department comprises the following divisions: Budget Office; Treasury
Office; Supply Chain Management; and, Revenue Management.

Achievements

• The Department led the planning process for integrated, focused service delivery and imple-
mentation of the Municipal Finance Management Act (MFMA) and National Treasury finan-
cial management reforms ensuring the continuance of the municipality’s status as a leading
pilot municipality in local government financial reforms.
• Team work finalised a successful fully-fledged financial planning process for the 2007/08
MTREF. The process involved an extensive community consultation process, the outcome of
which resulted in the timeous approval of a medium-term budget aligned to the Mayoral Five
Year Programme and imperatives of the City Development Strategy. Strengthened and more
experienced teamwork resulted in the compilation of the 2008/09 draft MTREF continuing
at an accelerated pace.
• The Department ensured the integration of the strategic planning initiatives, service delivery
policy options and various funding alternatives in spite of time constraints. All these pro-
cesses were undertaken within the legislative prescriptions and timeframes which included
extensive departmental training and capacity building.

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 CHAPTER TWO: Strategic Partnerships

>> 2.16 Strategic partnerships

The following strategic agreements are currently in place:

Country City Type of Date Place of

agreement signature
Europe

City of Tshwane Switzerland Basel Memorandum of 24 Sept 2004 City of Basel

Metropolitan Understanding
Municipality
City of Tshwane Belgium Maasmeschelen MoU 14 Nov 2003 City of Maasme-
Metropolitan schelen
Municipality
City of Pretoria The Kingdom of Delft Sister City Agree- 29 Nov 1999 City of Tshwane
the Royal Neth- ment
erlands
City of Tshwane Finland Oulu Sister City Agree- City of Oulu
Metropolitan ment
Municipality

Africa and the Middle East

City of Tshwane Democratic Algiers (Wilaya) Sister City Agree- 18 Oct 2001 City of Tshwane
Metropolitan People’s Republic ment
Municipality of Algeria
City of Tshwane Hashemite King- Amman Memorandum of 13 March 2002 City of Amman
Metropolitan dom of Jordan Understanding
Municipality
City of Tshwane Rwanda Kigali Protocol Agree- 27 July 2004 City of Tshwane
Metropolitan ment
Municipality

Asia and Australasia

City of Tshwane People’s Republic City of Tianjin Letter of Agree- 04 June 2004 City of Tianjin
Metropolitan of China ment
Municipality
City of Tshwane Vietnam Hanoi MoU 03 Nov 2007 City of Hanoi
Metropolitan
Municipality

Americas and the Caribbean

Pending agreements

City of Tshwane DRC Kinshasa Negotiations

Metropolitan (work in prog-
Municipality ress)
City of Tshwane Tunisia Tunis Work in prog-
Metropolitan ress
Municipality

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 CHAPTER THREE: Organisational Structure

>> 3.1 Organisational structure

>> 3.2 Alternative service delivery

The City of Tshwane embarked on the alternative service delivery (ASD) programme as a means
to improve efficiencies and effectiveness.

Organisational structures for all levels were approved on 26 September 2007, excluding Public
Works and Infrastructure Development, Information and Communication Technology (ICT) and
capacity problems at Community Safety as well as the final alignment in the Office of the Chief

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 CHAPTER THREE: Alternative Service Delivery

Financial Officer, which was finalised in June 2008. Further alignments related to the outcome of
the migration and placement process are being ringfenced as anomalies.

The placement process of employees (direct and selective) has been largely completed in
2007/08, except where structural amendments had been effected late in the 2007/08 financial
year, for example Public Works.

Special attention is also being given to start the staffing of the newly developed regions. Six inter-
nal business unit opportunities have been prioritised at a mayoral lekgotla. This process was set
in motion in terms of applicable legislation.

Progress with alternative service delivery mechanisms:

Mechanism 2006/07 2007/08

Regional Electricity Distributor (RED) • MSA section 78 process conducted Not reported

• However, the Cabinet changed the direction from

a municipal entity to a public entity on 25 October

2006.
Tshwane Transport Authority (TTA) • Public and stakeholder consultation process con- Not reported

ducted

• The Council resolved on 31 May 2007 that the

Municipality should go ahead with the establish-

ment of the TTA

Public Transport Operating Entity (PTOE) • The implementation framework for the implemen- Not reported

tation of the Tshwane Bus Rapid Transit (BRT) ap-

proved by the Council, including the establishment

of a PTOE to focus on the planning, implementa-

tion, operation, management and control of the

BRT system
Tshwane Economic Development • After the City of Tshwane growth and development Not reported

Agency (TEDA) summit, a TEDA was approved by the Mayoral

Committee
Regions • The five regions are: North East, East, North West, Not reported

Central West and South. Satellite offices have been

established to ensure that services are access able

to all residents.

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 CHAPTER THREE: Trends in Personnel Expenditure

>> 3.3 Trends in personnel expenditure

Financial year Rands Percentage of the 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 31.6%
2005/06 2 369 366 000 32,0%
2006/07 2 412 004 371 28.9%
2007/08 2 593 391 088 29.5%

>> 3.4 Staff information

Number and cost to 2005/06 2006/07 2007/08

employer of all Number R Number R Number R
municipal staff employed
13 012 1 728 302 12 179 1 857 925 12 939 1 973 864
TOTAL
762 469 656
Professional (Managerial/ 966 472947 562 908 35 154 989 803 31 089 709

Specialist)
Field (Supervisory/Foremen) 3869 702 821 628 3 600 62 153 978 3 760 65 916 377
Office (Clerical/Administrative) 4366 516 801 636 3 977 50 198 691 4 193 52 925 097
Non-professional (blue collar 3811 35 731 936 3 694 27 458 445 3 559 28 454 955

and outside workforce)

The table on the following page reflects the number of staff employed by the Municipality and
gives a breakdown per key function.

City of Tshwane Annual Report 2008/2009 // pg 63

Annual Report v2.indd 63 2009/06/04 09:14:27 AM

 2004/05 2005/06 2006/07 2007/08

Annual Report v2.indd 64

Key function Number of Number of Number of Number of Number of Number of Key function Number of Number of

pg 64
posts posts filled posts posts filled posts posts filled posts posts filled

//
Service Delivery 2 670 1 874 2 670 1820 2 670 1 766 Public Works and Infrastructure 2 670 1688
Electricity 2 878 1 923 2 878 1935 2 878 1 879 Electricity 2 878 1795
Housing, City Planning and Environ- 3 696 2 784 3 696 2480 3 696 2 429 Housing 3 696 2349

mental Management
City Planning and Regions
Social Development 1 546 932 1 546 953 1 546 923 Health and Social Development 1 546 893
Emergency Management Services 1 286 559 1 286 748 1 286 664 Emergency Management Services 1 286 755
Metropolitan Police 3 094 1 615 3 094 1621 3 435 1 582 Metropolitan Police 3 435 2131
Corporate Services 1 782 1 396 1 782 1590 1 782 1 449 Corporate and Shared Services 1 782 1614
Legal and Secretarial Services and 338 192 338 200 338 186 338 182

City of Tshwane Annual Report 2008/2009

Municipal Courts
Economic Development and Tourism 974 626 974 763 974 642 Economic Development and 974 689

Tourism
CHAPTER THREE: Alternative Service Delivery

Finance 1 208 862 1 208 677 1 208 642 Finance 1 208 646
Marketing 67 28 67 24 67 23 67 24
Governance Operational Support 150 262 150 111 156 107 156 107
Office of the Chief Operating Officer 25 19 25 13 25 12 25 12
Office of the Municipal Manager 99 35 99 44 109 46 Office of the City Manager 109 54
TOTAL 19 813 13 107 19 813 12979 20 170 12 331 20 170 12 939

2009/06/04 09:14:31 AM
 CHAPTER THREE: Disclosure of Senior Staff Benefits

>> 3.5 Disclosure of senior staff benefits

The following table reflects the remuneration packages of Section 57 employees:

Incumbent Pay number Designation Remuneration Bonus

package per R
annum
(2007/08)
R
KD Kekana 10003042 City Manager 1 054 944 Not indicated yet
M Lekgoro 10004909 SED: Strategy and Operations 815 472 Not indicated yet
NV Makhari 10003848 Chief Financial Officer 907 584 Not indicated yet
H Msimang 10002322 SED: Community Safety 892 968 Not indicated yet
M Makwarela 10004797 SED: Agriculture and Environmental 714 012 Not indicated yet

Management
N Lukhwareni 00500419 SED: Public Works and Infrastructure 865 056 Not indicated yet

Development
J de Beer 00505958 SED: Health and Social Development 700 008 Not indicated yet
M Phora 00504898 SED: Housing and Sustainable Human 834 456 Not indicated yet

Settlement Development
Z Ndziba 10002930 SED: Corporate and Shared Services 909 084 Not indicated yet
T Mhlekwa 10004903 SED: Economic Development 798 516 Not indicated yet
O Nkoane 10005868 SED: City Planning and Regional Services 834 456 Not indicated yet
GM Nkwane 10004049 CEO: 2010 878 052 Not indicated yet
P Aborn 00500427 Programme Manager: Tshwane House 951 432 Not indicated yet

City of Tshwane Annual Report 2008/2009 // pg 65

Annual Report v2.indd 65 2009/06/04 09:14:35 AM

 CHAPTER THREE: Disclosure of Senior Staff Benefits

3.5.1 Disclosures concerning councillors, directors and senior officials for the period 1
July 2007 to 30 June 2008

Description Mayor Members of Total Mayor Members of Total

the MC (list the MC (list

individually) individually)

Salaries and
2006/07 2007/08
Wages R’000
Normal R527 223.75 R15 066 097.65

Mamonare Patricia Chueu R395 418.16

Tessa Ernest R395 418.16

Subesh Pillay R395 418.16

Absolom Molafo Ditshoke R395 418.16

Sonto Sophia Thipe R395 418.16

Zodwa Lydia Masondo R395 418.16

Boesman William R395 418.16

Mahlangu

Cornelius Thipe Mokoena R395 418.16

Gabriel Twala R395 418.16

Dikeledi Joahanna R395 418.16

Lehobye

Travel and motor car R175 741.25 R1 493 797.15

Mamonare Patricia Chueu R131 805.59

Tessa Ernest R395 418.16

Subesh Pillay R395 418.16

Absolom Molafo Ditshoke R395 418.16

Sonto Sophia Thipe R395 418.16

Zodwa Lydia Masondo R395 418.16

Boesman William R395 418.16

Mahlangu

Cornelius Thipe Mokoena R395 418.16

Gabriel Twala R395 418.16

Dikeledi Joahanna R395 418.16

Lehobye

Other benefits and

allowances (specify) R26 227,00 R157 267,00
R ‘000

Mamonare Patricia Chueu R131 104,00

Tessa Ernest R131 104,00

Subesh Pillay R131 104,00

Absolom Molafo Ditshoke R131 104,00

Sonto Sophia Thipe R131 104,00

Zodwa Lydia Masondo R131 104,00

Boesman William R131 104,00

Mahlangu

Cornelius Thipe Mokoena R131 104,00

Gabriel Twala R131 104,00

Dikeledi Joahanna R131 104,00

Lehobye

pg 66 // City of Tshwane Annual Report 2008/2009

Annual Report v2.indd 66 2009/06/04 09:14:38 AM

 CHAPTER THREE: Human Resource Practices and Policies

>> 3.6 Human resource practices and policies

3.6.1 Review of HR policies

EXISTING POLICY NEW POLICY

(to be renewed) (to be developed)
GPMC Recruitment, Selection and Placement Policy Staffing Policy (in process)
Grading Scheme Policy on the control of Hazardous Biological Agents in
Appointment requirement guidelines/procedures the Workplace (in process)
Accelerated progression Retention strategy
Negotiated appointment notch Policy on the use of personnel agencies
Delegated authorities for certain grading scheme Use of pregnant employees in Emergency and Metro
aspects Police Services (addressed in the approved fitness for work
policy)
Waiving of appointment requirements: pinning principle Practice with regard to the use of psychometrical and
other tests
Transfer Policy Remuneration Policy
Drug and Alcohol Policy Desertion Policy
Management of Sick Leave Policy Funeral Policy
Acting Policy Overtime Policy
Career Management Policy Relocation Policy
Change of Shift Systems in Emergency Services Identification and handling of scarce type of employees
(Could be addressed as part of Remuneration as well as
Retention strategy)
Implementation of a uniform fixed allowance for Op- Retrenchment Policy
erational Personnel in Emergency Services
Employment Equity Policy Redeployment Policy
Medical Surveillance Policy Recognition of Prior Learning (RPL) Policy
Career Management Policy Experiential training policy
Bursary Policy

City of Tshwane Annual Report 2008/2009 // pg 67

Annual Report v2.indd 67 2009/06/04 09:14:42 AM

 >> 3.7 Employment Equity

Annual Report v2.indd 68

pg 68
2006/07

//
Occupational categories 2007/08 2006/07 2007/08
2006/07
2007/08

Male Male Female Female

African Coloured Indian White African Coloured Indian White African Coloured Indian White African Coloured Indian White TOTAL TOTAL

Legislators, senior officials and managers 142 14 11 219 35 3 3 40 66 4 5 87 11 1 14 548 107

Professionals 388 14 6 435 171 9 8 338 123 4 3 105 74 3 2 91 1078 696
Technicians and associate professionals 370 16 10 631 508 27 10 734 283 20 6 276 462 22 19 407 1612 2189
Clerks 1328 71 26 586 508 29 13 204 843 99 28 889 535 75 21 643 3870 2028

City of Tshwane Annual Report 2008/2009

Service and sales workers 60 0 2 8 1142 36 9 430 59 1 0 3 492 7 1 48 133 2165
CHAPTER THREE: Employment Equity

Skilled agricultural and fishery workers 30 0 0 4 25 1 1 28 27 0 0 1 4 13 62 72

Craft and related trades workers 462 5 1 315 827 9 2 378 11 0 0 11 21 10 805 1247
Plant and machine operators and assemblers 924 10 2 159 718 4 1 142 28 1 0 12 10 6 1136 881
Elementary occupations 3220 13 0 28 2252 11 211 179 3 0 4 198 3 3 3447 2678
TOTAL PERMANENT 6924 143 58 2385 6186 129 47 2505 1619 132 42 1388 1807 110 44 1235 12691 12063
Non-permanent employees 2667 7 4 99 340 11 5 93 3226
GRAND TOTAL 9591 150 62 2484 6186 129 47 2505 1959 143 47 1481 1807 110 44 1235 15917 12063

2009/06/04 09:14:46 AM
Annual Report v2.indd 69
Occupational levels 2006/07 2007/08 2006/07 2007/08
2006/07
2007/08

Male Male Female Female

African Coloured Indian White African Coloured Indian White African Coloured Indian White African Coloured Indian White TOTAL TOTAL

Top management 8 0 1 2 26 1 1 2 2 0 0 0 23 1 1 13 55
Senior management 134 14 10 217 31 3 2 77 64 4 5 87 4 1 16 535 134
Professional qualified and experienced 758 30 16 1066 118 10 7 400 406 24 9 381 65 4 2 148 2690 754

specialists and mid-management

S. Tech, Ac qualified work; Junior manage- 1880 76 29 913 1032 46 18 1246 940 100 28 904 576 32 17 576 4870 3543

ment, Supervisors, Foremen Superintendants

Semi-skilled and discretionary decision- 924 10 2 159 2329 47 19 515 28 1 0 12 931 70 23 488 1136 4422

making

City of Tshwane Annual Report 2008/2009 //

Unskilled and defined decision-making 3220 13 0 28 2650 22 265 179 3 0 4 208 3 7 3447 3155
CHAPTER THREE: Employment Equity

TOTAL PERMANENT 6924 143 58 2385 6186 129 47 2505 1619 132 42 1388 1807 110 44 1235 12691 12063
Non-permanent 2667 7 4 99 340 11 5 93 3226

pg 69
GRAND TOTAL 9591 150 62 2484 6186 129 47 2505 1959 143 47 1481 1807 110 44 1235 15917 12063

2009/06/04 09:14:50 AM
 CHAPTER THREE: Skills Development

>> 3.8 Skills development

2005/6 financial year

A total of 7 238 people were trained in terms of skills priorities. Altogether 3 690 people were
trained in SAP computer system transactions. The overall number of people who were trained
during 2005/06 is 10 928.

The total expenditure on training for various skills priorities was R4 628 063,02.

2006/07 financial year

A total of 7554 individuals were trained in terms of skills priorities, including OITPS training.

The total expenditure on training for various skills priorities was R6 615,081.19.

2007/08 financial year

A total number of 8 078 individuals were trained in terms of skills priorities, excluding OITPS
training.

The total expenditure on training for various skills priorities was R5 036 788.17

3.8.1 Skills levies

A total of R16 266 476, 26 was paid in skills levies to the LGSETA in the 2005/6 finan-
cial year.

A total of R14 554 673, 54 was claimed back in terms of Grants C and D in the
2005/06 financial year.

A total of R17 959 155.42 was paid in skills levies to the LGSETA in the 2006/07 finan-
cial year.

A total of R10 638 395.92 was claimed back in terms of Grant C in the 2006/07
financial year.

A total of R19 454 611.30 was paid in skills levies to the LGSETA in the 2007/08 finan-
cial year.

A total of R7 622 163.11 was claimed back in terms of Grant C in the 2007/08 finan-
cial year.

pg 70 // City of Tshwane Annual Report 2008/2009

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 CHAPTER THREE: Skills Development

3.8.2 Learning intervention statistics

OCCUPATIONAL CATEGORY 2006/07 2007/08

Clerks 1 059 1 474
Craft and related trades workers 560 554
Elementary occupations 434 471
Legislators, senior officials and managers 60 121
Plant and machine operators and assemblers 178 207
Professionals 567 606
Service and sales workers 500 1 910
Skilled agricultural and fishery workers 72 70
Technicians and associated professionals 1 833 2 041
Bursars 1
Temporary employees 10
Learnership placements 49
Pensioners 2
No classification available 624
Grand total 5 325 8 078

3.8.3 Bursaries

The total number of bursaries allocated for 2007/08 is as follows:

OCCUPATIONAL CATEGORIES TOTALS

Skilled agricultural and fishery workers
Technicians and associated professionals
Bursars 1 500
Temporary employees
Learnership placements
Pensioners
Grand total 1 500

2006/07 2007/08
Employees 210 192
Non-employees 20 16
Non-employees (social responsibility) 60 15
Mayoral Grade 12 Awards 30 29
Total 320 252

City of Tshwane Annual Report 2008/2009 // pg 71

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 CHAPTER THREE: Occupational Health and Safety

3.8.4 Learnerships and apprenticeships for 2007/08

Name of learnership Department Number of students Provider

Name of apprentice- during intake of
ship learnership or ap-
prenticeship
EPWP Service Delivery 33 South Africa Value Educa-
Vukuphile learnership tion
Environmental Education, Environmental Manage- 1 Zanokuhle/Wildlife and
Training and Development ment Environment Society of
Practices Learnership South Africa
National Certificate: Fire Emergency Management 29 Emergency Management
and Rescue Operations Service Department Training
(NQF 4)
Water Service Hand HR 5 Premos
EPWP Electricity 94 PGH and TFET
Vehicle Mechanic HR 43 Premos
Plumber HR 20 Premos
Welding HR 30 Premos
Fitting and Turning HR 27 Premos
Boilermaker HR 12 Premos
Auto Electrician HR 7 Premos
Electrician HR 34 Premos

Total 335

>> 3.9 Occupational Health and Safety

Activity Total employees/incidents Total employees/incidents

2006/07 2007/08
Medical surveillance including biological 3 500 3 362 employees
monitoring
Initial and exit medical examinations 968 752 employees
Evaluation of medically incapacitated employ- 107 76 cases
ees
Development of occupational risk profiles 420 408 profiles
Immunisation against Hepatitis B 1 123 1 402 immunisations
General medical services provided 10 062 10 566 clinic visits
Specialised and general health and safety 12 094 2 852 employees
training provided to employees
Legal compliance audits 147 162 audits
Inspections of workplaces 220 201 inspections
Accident recorded, investigated and legally 858 814 incidents
required documentation produced
Tenders and quotes evaluated in terms of 88 504 quotes and tenders
health and safety requirements
Health and Safety Committee meetings at- 360 285 meetings
tended as co-opted members
Occupational hygiene surveys performed 46 52
Assessment of stressors done 29 22

pg 72 // City of Tshwane Annual Report 2008/2009

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 CHAPTER THREE: Occupational Health and Safety

3.9.1 Employment Wellness Management

Summary of statistics for the period 1 July 2007 to 30 June 2008:

2006/07 2007/08
New cases 348 381
Follow-up 725 823
Closed cases 145
Total 1 073 1 349

Categories of problems managed in the City of Tshwane:

New Follow up Interview Counselling Number

cases of cases
closed
Personal Telephonic
1 Depression 44 92 43 55 58 13
2 Stress 50 89 52 49 64 17
3 Marital 28 114 70 139 96 19
4 Family 17 42 38 38 43 11
5 Children 12 19 17 19 16 2
6 Substance abuse 10 24 27 35 23 5
- Alcohol 10 68 46 64 48 14
- Other 15 31 38 34 29 4
7 Psychiatric problems 4 18 15 22 28 1
8 Interpersonal problems 25 40 22 18 16 7
9 Relationship problems 5 16 11 17 15 6
10 Injury on duty 2 6 8 3 8 1
11 Disciplinary-related affairs 13 39 32 36 34 9
12 Financial 33 66 34 45 45 5
13 PTSD 22 46 36 29 44 12
14 HIV and Aids 1 6 4 1 1 1
15 Fitness for duty 5 8 3 10 5 2
16 Maintenance 5 9 4 3 4 2
17 Other 43 42 3 5 7 0
18 Bereavement 2 1 2 1 2 2
19 Trauma 12 18 11 6 13 7
20 Work related 22 28 16 5 19 4
21 Medical treatment 1 1 2 0 2 1

Total 381 823 534 634 620 145

City of Tshwane Annual Report 2008/2009 // pg 73

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 CHAPTER THREE: Performance Management

>> 3.10 Performance management

During the 2007/08 financial year, the individual performance management policy for top man-
agement at organisational levels 1, 2 and 3 had to be revised. This is mainly to give effect to Reg-
ulation 805 of 2006 (Municipal Performance Regulation for Municipal Managers and Managers
directly accountable to Municipal Managers). Certain gaps were also identified after an audit of
the performance results of 2006/07. The new policy as developed for top management there-
fore focuses on the full implementation of the performance management principles as set out in
Regulation 805 and addresses the identified gaps in the City of Tshwane. Note must be taken that
although Regulation 805 only pertains to the City Manager and his or her direct reports (City of
Tshwane Departmental Heads), the principles are as far as possible also being made applicable
to the City of Tshwane level 3 posts (Divisional Heads) for purposes of consistency. The individual
performance management policy for permanent employees was also finalised to start giving ef-
fect to the proper aligned cascading of performance management to the lower levels.

>> 3.11 Pension funds

The composition of membership per pension and provident fund was as follows:

2006/07 2007/08
Fund
Number of members Number of members
National Pension Fund for Municipal Workers 3 251 3 114
Municipal Gratuity Fund 1 452 1 408
Joint Municipal Pension Fund 64 56
Municipal Workers Pension Fund 1 859 1 796
Samwu National Pension Fund 979 958
Tshwane Municipal Provident Fund 1 639 2 276
Tshwane Municipal Pension Fund 327 433
Sala Provident Fund 97 94
Sala Pension Fund 992 970
Germiston Municipal Retirement Fund 2 1
Government Employees Pension Fund 122 204
Meshawu Gratuity Fund 61 60
Pension Fund for Councillors 108 109

TOTAL 10 953 11 479

pg 74 // City of Tshwane Annual Report 2008/2009

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 CHAPTER THREE: Medical Aid Funds

>> 3.12 Medical aid funds

Membership of the medical aid funds was as follows:

2006/07 2007/08
Fund Number of members Number of members
Bonitas 2 685 2 860
Hosmed 4 191 4 277
Global (was Pretmed) 1 616 2 432
Pro Sano 0 0
Omnitop 0 0
Munimed 1 368 0
Medihelp 0 0
Bensure 0 0
LA Health 334 316
SamwuMED 120 183

TOTAL 10 314 10 068

>> 3.13 Outstanding amounts owed to the Municipality

by employees

Sundry debtors: Loans

Closing 30/06/2008
Loan type GL number
Number of loans Balance
Motor loans 50080 97 R 2 134 389,02
Computer loans 50100 No data available No data available
Study loans 50110 No data available No data available
University loans 50120 2 R 13 929,67
Damaged/lost goods loans 149300 22 R 206 675,75
Council recovery loans (overpayments etc) 149300 631 R 2 544 575,94

TOTAL R 4 899 570,38

City of Tshwane Annual Report 2008/2009 // pg 75

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 CHAPTER FOUR: Financial Statements

>> 4.1 REPORT OF THE AUDITOR GENERAL

Report of the auditor General to the gauteng provincial legislature and the council on the group
Financial Statements and Performance information of the City of Tshwane Metropolitan Municipal-
ity for the year ended 30 June 2008.

Report on the Financial Statement

Introduction
1. I have audited the accompanying group financial statements of the City of Tshwane Metro-
politan Municipality (City of Tshwane) which comprise the consolidated and separate Statement
of Financial Position as at 30 June 2008, consolidated and separate statement of financial per-
formance, consolidated and separate statement of changes in net assets and consolidated and
separate cash flow statement for the year then ended, and a summary of significant accounting
policies and other explanatory notes, as set out on pages [xx] to [xx].

Responsibility of the accounting officer for the financial statements

2. The accounting officer is responsible for the preparation and fair presentation of these finan-
cial statements in accordance with the basis of accounting determined by the National Treasury,
as set out in accounting policy note 1 and in the manner required by the Local Government: Mu-
nicipal Finance Management Act, 2003 (Act. 56 of 2003) (MFMA). This responsibility includes:

• designing, implementing and maintaining internal control relevant to the preparation and
fair presentation of financial statements that are free from material misstatement, whether
due to fraud or error
• selecting and applying appropriate accounting policies
• making accounting estimates that are reasonable in the circumstances.

pg 76 // City of Tshwane Annual Report 2008/2009

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 CHAPTER FOUR: Financial Statements

Responsibility of the Auditor-General

3. As required by section 188 of the Constitution of the Republic of South Africa, 1996 read with
section 4 of the Public Audit Act, 2004 (Act 25 of 2004) (PAA) and section 126 of MFMA, my
responsibility is to express an opinion on these financial statements based on my audit.

4. I conducted my audit in accordance with the International Standards on Auditing and General
Notice 616 of 2008, issued in Government Gazette 31057 of 15 May 2008. Those standards
require that I comply with ethical requirements and plan and perform the audit to obtain reason-
able assurance on whether the financial statements are free from material misstatement.

5. An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s judge-
ment, including the assessment of the risks of material misstatement of the financial statements,
whether due to fraud or error. In making those risk assessments, the auditor considers internal
control relevant to the entity’s preparation and fair presentation of the financial statements to
design audit procedures that are appropriate in the circumstances, but not for the 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
• overall presentation of the financial statements.

7. Paragraph 11 et seq. of the Statement of Generally Recognised Accounting Practice, GRAP 1

Presentation of Financial Statements requires that financial reporting by entities shall provide in-
formation on whether resources were obtained and used in accordance with the legally adopted
budget. As the budget reporting standard is not effective for this financial year, I have determined
that my audit of any disclosures made by the City of Tshwane in this respect will be limited to
reporting on non-compliance with this disclosure requirement.

8. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis
for my audit opinion.

Basis of accounting
9. The municipality’s policy is to prepare financial statements on the basis of accounting deter-
mined by the National Treasury, as set out in accounting policy note xx.

Basis for qualified opinion

Property rates and property values
10. I could not satisfy myself as to the accuracy, completeness and occurrence of the amounts
(current and corresponding figures) disclosed as property rates and property values in the state-

City of Tshwane Annual Report 2008/2009 // pg 77

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 CHAPTER FOUR: Financial Statements

ment of financial performance and note 18 to the financial statements, as incomplete and insuf-
ficient information was provided for audit purposes. No alternative audit procedures could be
performed and, consequently, I was unable to satisfy myself as to the completeness, occurrence
and accuracy of the property rates and the property values as at 30 June 2008 totalling R2,181
billion (30 June 2007: R1,719 billion) and R20,616 billion (30 June 2007: R21,333 billion),
respectively.

Property, plant and equipment

11. The City of Tshwane did not recognise certain items of property, plant and equipment with a
purchase value of less than or equal to R10 000. The cumulative amount of these items expensed
over the years total about R155,167 million. Expensing these amounts was in contravention of
the Generally Accepted Municipal Accounting Practice, GAMAP 17 Property, Plant and Equip-
ment, which states that an item of property, plant and equipment that qualifies for recognition as
an asset shall be carried at cost less any accumulated depreciation. Therefore the carrying value
of property, plant and equipment is misstated by an unknown amount, as the depreciation and
accumulated depreciation cannot be accurately determined. No alternative audit procedures
could be performed.

Qualified opinion
12. In my opinion, except for the effects of such adjustments, if any, as might have been deter-
mined to be necessary had I been able to satisfy myself as to the matters described in the Basis
for qualified opinion paragraphs, the financial statements present fairly, in all material respects,
the financial position of the City of Tshwane Metropolitan Municipality and group as at 30 June
2008 and its financial performance and cash flows for the year then ended, in accordance with
the basis of accounting and in the manner required by the MFMA.

Emphasis of matter

I draw attention to the following matter:

Amendments to the applicable basis of accounting
13. As set out in accounting policy note 1, the National Treasury approved a deviation from the
basis of accounting applicable to the municipality in terms of General Notice 552 of 2007, is-
sued in Government Gazette 30013 of 29 June 2007.

OTHER MATTERS
I draw attention to the following matters that relate to my responsibilities in the audit of the finan-
cial statements:

Internal controls
14. Section 62(1)(c)(i) of the MFMA states that the accounting officer must ensure that the mu-
nicipality has and maintains effective, efficient and transparent systems of financial and risk

pg 78 // City of Tshwane Annual Report 2008/2009

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 CHAPTER FOUR: Report of the Auditor General

management and internal control. The table below depicts the root causes that gave rise to the
inefficiencies in the system of internal control, which led to the qualified opinion. The root causes
are categorised according to the five components of an effective system of internal control. In
some instances deficiencies exist in more than one internal control component.

Reporting item Control en- Risk assess- Control Information Monitoring

vironment ment activities and commu-
nication
Property rates and property X X
values
Property, plant and equip- X
ment
Control environment: establishes the foundation for the internal control system by providing fundamental discipline

and structure for financial reporting.

Risk assessment: involves the identification and analysis by management of relevant financial reporting risks to

achieve predetermined financial reporting objectives.

Control activities: policies, procedures and practices that ensure that management’s financial reporting objectives

are achieved and financial reporting risk mitigation strategies are carried out.

Information and communication: supports all other control components by communicating control responsibilities

for financial reporting to employees and by providing financial reporting information in a form and time frame that

allows people to carry out their financial reporting duties.

Monitoring: covers external oversight of internal controls over financial reporting by management or other parties

outside the process; or the application of independent methodologies, like customised procedures or standard check-

lists, by employees within a process.

Non-compliance with applicable legislation

Municipal Finance Management Act

15. In 2001 the then City of Tshwane council resolved to provide an official residence to the
mayors of City of Tshwane. This provision of an official residence to a mayor does not fall within
the framework of the Remuneration of Public Office Bearers Act, 1998 (Act. 20 of 1998), which
in turn results in the transgression of section 167 of the MFMA which came into effect in 2004
and states that a municipality may remunerate its members of the political structure only within
the framework of the Remuneration of Public Office Bearers Act, 1998. If it falls outside this, it
must be classified as irregular expenditure and the municipality must take the appropriate steps
as required.

Matters of governance
16. The MFMA tasks the accounting officer with a number of responsibilities concerning financial
and risk management and internal control. Fundamental to achieving this is the implementation
of certain key governance responsibilities, which I have assessed as shown on the next page:

City of Tshwane Annual Report 2008/2009 // pg 79

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 CHAPTER FOUR: Report of the Auditor General

Matter of governance Yes No

Audit committee

• The municipality had an audit committee in operation throughout the financial year. X
• The audit committee operates in accordance with approved, written terms of reference. X
• The audit committee substantially fulfilled its responsibilities for the year, as set out in section
X
166(2) of the MFMA.

Internal audit

• The municipality had an internal audit function in operation throughout the financial year. X
• The internal audit function operates in terms of an approved internal audit plan. X
• The internal audit function substantially fulfilled its responsibilities for the year, as set out in
X
section 165(2) of the MFMA.

Other matters of governance

• The annual financial statements were submitted for audit as per the legislated deadlines in
X
section 126 of the MFMA.
• The annual report was submitted to the auditor for consideration before the date of the audi-
X
tor’s report.
• The financial statements submitted for audit were not subject to any material amendments
X
resulting from the audit.
• No significant difficulties were experienced during the audit concerning delays or the unavail-
X
ability of expected information.
• The prior year’s external audit recommendations have been substantially implemented. X

Implementation of Standards of Generally Recognised Accounting Practice (GRAP)

• The municipality submitted an implementation plan, detailing progress towards full compli-
ance with GRAP, to the National Treasury and the relevant provincial treasury before 30 X
October 2007.
• The municipality substantially complied with the implementation plan it submitted to the
National Treasury and the relevant provincial treasury before 30 October 2007, detailing its X
progress towards full compliance with GRAP.
• The municipality submitted an implementation plan, detailing further progress towards full
compliance with GRAP, to the National Treasury and the relevant provincial treasury before 31 X
March 2008.

Unaudited supplementary schedules

17. The supplementary information set out on pages XXXX to XXX does not form part of the finan-
cial statements and is presented as additional information. I have not audited these schedules
and accordingly do not express an opinion on them.

OTHER REPORTING RESPONSIBILITIES

Report on Performance Information

18. I have audited the performance information as set out on pages xx to xx.

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 CHAPTER FOUR: Report of the Auditor General

Responsibility of the accounting officer for the performance information

19. In terms of section 121(3)(c) of the MFMA, the annual report of a municipality must include
the annual performance report of the municipality prepared by the municipality in terms of sec-
tion 46 of the Local Government: Municipal Systems Act, 2000 (Act. 32 of 2000) (MSA).

Responsibility of the Auditor-General

20. I conducted my engagement in accordance with section 13 of the PAA read with General
Notice 616 of 2008, issued in Government Gazette 31057 of 15 May 2008 and section 45 of
the MSA.

21. In terms of the foregoing my engagement included performing procedures of an audit nature
to obtain sufficient appropriate evidence about the performance information and related sys-
tems, processes and procedures. The procedures selected depend on the auditor’s judgement.

22. I believe that the evidence I have obtained is sufficient and appropriate to provide a basis for
the audit findings reported below.

Audit findings (performance information)

Non-compliance with regulatory requirements

23. Although the integrated development plan (IDP) was adopted on 31 May 2007, the public
was only notified on 5 October 2007 and not on a timely basis as required by section 25(4) of
the MSA.

24. A performance management specialist was only appointed in January 2008 with the result
that there was no performance management specialist for the period 1 July 2007 to 31 Decem-
ber 2007. Furthermore, the terms of reference of the audit committee were not amended during
the 2007/08 financial year to make provision for the performance management specialist and
to incorporate the roles and responsibilities pertaining to performance management. The audit
committee charter was subsequently amended and approved by the council on 2 October 2008,
but the amendments made are only applicable to the 2008-09 financial year.

25. Two separate performance audit committees were established at the City of Tshwane. The
council appointed an audit committee and resolved that it be used as the City of Tshwane per-
formance audit committee during January 2008. Subsequent to this appointment, however, the
remuneration and performance management committee, established on 25 August 2005, was
also appointed as a performance audit committee by the mayoral committee per a resolution
dated 22 October 2008.

26. Measures to improve performance were not always disclosed in the annual performance
report, as required by section 46(1)(c) of the MSA.

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27. The internal audit unit did not perform audit evaluations and reviews on the 2007/08 first
and second quarterly performance reports, as required by section 45 of the MSA. Furthermore,
although the provisional 2007/08 mid-year report was submitted to the mayoral committee on
16 January 2008 and submitted to the council on 24 January 2008, this report was only referred
to internal audit for evaluation and review on 6 June 2008.

28. A signed service level agreement between the City of Tshwane and the Housing Company
Tshwane, as required in terms of sections 76 and 77 of the MSA, could not be provided for audit
purposes.

No correlation between performance targets in the IDP

29. The following were noted with regard to the performance targets as contained in the IDP:

• The sum total of the annual targets over a period of five years (2006-2011) does not agree
to the total as per the five-year departmental targets.
• In some instances, there is no correlation between the annual performance targets and the
departmental targets set for the five-year programme.

Targets inconsistent between IDP and annual performance report

30. Some of the approved targets as contained in the 2007/08 IDP are inconsistent with the
targets as reported in the 2007/08 annual performance report. The following targets serve as
examples:

• Quality infrastructure
• Maintenance of roads
• Maintenance of transport facility
• Maintenance of traffic signals

Lack of sufficient appropriate audit evidence

31. In verifying the actual performance against predetermined objectives of the City of Tshwane
for the 2007/08 financial year in relation to the development priority and objective “Provide
quality basic services and infrastructure” as contained in the 2007/08 annual performance re-
port, the following were noted:

• In some instances evidence submitted for audit purposes was not sufficient and appropriate
to support the actual targets achieved.
• In other instances evidence to support the actual targets achieved as contained in the
2007/08 annual performance report was not submitted for audit purposes as requested.

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 CHAPTER FOUR: Report of the Auditor General

Evidence inconsistent with reported performance information

32. The percentage of unaccounted for water as per the water and sanitation departmental
report did not agree with the percentage of unaccounted for water as reported in the 2007/08
annual performance report.

Incomplete performance information submitted

33. I was not able to verify that the performance information relating to the municipal entities
was incorporated in the 2007/08 City of Tshwane annual performance report. The performance
information relating to the percentage of unaccounted for water as detailed in the performance
report of the Sandspruit Works Association serves as an example.

Furthermore, the annual performance report submitted for audit purposes on 31 August 2008
was incomplete and did not in all instances include essential information as required by the rel-
evant laws and regulations.

OTHER REPORTS

Investigations
34. Various investigations are currently in progress at the City of Tshwane, in conjunction with
the internal audit unit and various departmental heads. The investigations cover a wide range of
activities at the City of Tshwane and were still ongoing at the date of this report. The effect on the
financial statements is therefore unknown.

APPRECIATION: The assistance rendered by the staff of the City of Tshwane during the audit is
sincerely appreciated.

Auditor General

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 CHAPTER FOUR: Report of the Auditor General

>> 4.2 Report of the Chief Financial Officer

4.2.1 Introduction

Over the past number of years the City of Tshwane has proved that it is committed to sound fi-
nancial management. The 2007/08 financial year is again a clear reflection that all roleplayers
have tried to balance investment in economic and social infrastructure, addressing the continued
promotion of growth and poverty alleviation and job creation.

The budget and the City of Tshwane’s five-year strategic plan are aligned with the vision and im-
peratives of national government, which are to address service delivery backlogs and to comply
with the Municipal Finance Management Act, 2003 (Act 56 of 2003). Furthermore, the budget
gives tangible meaning to the five-year programme and its priorities, which are to –

• provide quality basic services and infrastructure throughout the city;

• ensure accelerated shared and higher local economic growth and development;
• fight poverty and build clean, healthy, safe and sustainable communities;
• foster participatory democracy and Batho Pele principles through a caring, accessible and
accountable service;
• ensure good governance, financial viability, the building of institutional capacity and the
optimisation of transformation with the administration having the capacity to execute its
mandate.

This five-year strategic plan and programme of action are the foundation of the City of Tshwane’s
2007/08 Medium-term Revenue and Expenditure Framework (MTREF). All the initiatives and pro-
grammes which were included in the 2007/08 MTREF could only be sustained if sound financial
management and planning principles were applied.

A key requirement for the economic success of the City of Tshwane is its investment in strategic
economic infrastructure, complemented by private sector and community investments. The City
of Tshwane’s growth strategy seeks to increase the growth rate and translate it into job creation
and other economic opportunities.

The City of Tshwane has challenges similar to that of other metropolitan municipalities in ad-
dressing disparities in levels of service and infrastructural development in its area of jurisdiction.
This calls on the Municipality to use its resources wisely to satisfy the needs of the community.
As a developmental and caring local government, the City of Tshwane is committed to working
with residents to find sustainable ways to meet their social, economic and material needs and to
improve the quality of their lives. Local authorities have a duty to ensure that policies and legisla-
tion aimed at developing communities are implemented.

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 CHAPTER FOUR: Report of the Auditor General

4.2.2 Review of Operating Results

The 2007/08 budget of the City of Tshwane was approved by the Council on 31 May 2007 and
the adjustments budget was approved by the Council on 24 January 2008. Figures with regard
to the 2007/08 original budget as well as the adjusted budget are included in this report. The
budgets of the municipal entities are not included, as some of the budgets were unavailable.

4.2.2.1 General

Details of the 2007/08 operating results per department and classification of revenue and ex-
penditure are included in the Statement of Financial Performance and Annexure D. The operating
results are shown in the graph below:

The overall operating results for the year ended 30 June 2008 are as follows:

Description Original Adjusted Actual 2008 Actual Variance Actual 2007 Actual
budget 2008 budget 2008 Municipality 2008 actual/ Municipality 2007
Municipality Municipality R’000 Group adjusted R’000 group
R’000 R’000 R’000 budget R’000
%

REVENUE
Accumulated

surplus: 731 314 827 171 501 052 622 648

Beginning of year
Operating revenue
10 206 759 10 234 429 10 120 794 10 402 043 1,63 8 601 482 8 790 719
for the year
10 206 759 10 234 429 10 882 108 11 229 214 9 102 534 9 413 367

EXPENDITURE
Operating expendi-
9 037 141 9 338 367 9 263 350 9 588 216 2,67 8 288 558 8 547 579
ture for the year
Sundry transfers * 1 169 618 896 062 144 359 137 527 52 662 38 617

Accumulated sur-
1 474 399 1 503 471 761 314 827 171
plus: End of year
10 206 759 10 234 429 10 882 108 11 229 214 9 102 534 9 413 367

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 CHAPTER FOUR: Report of the Auditor General

* Sundry transfers consist of transfers to and from the reserves, for example offset depreciation for projects
financed from grants and the capital replacement reserve.

The actual net expenditure of the Municipality reflects an increase of 11,8% (group increased
with 12,2%) while the actual revenue of the Municipality has increased by 17,7% (group in-
creased with 18,3%) since 2006/07. The largest increase on revenue occurred in assessment
rates, service charges and government grants and subsidies. The largest increase on expenditure
occurred in remuneration, collection cost, bulk purchases, repair and maintenance, general ex-
penditure and the contribution to the provision for bad debt in respect of RSC levies.

4.2.2.2 Operating revenue

The following graph gives a breakdown of the largest categories of revenue.

4.2.2.3 Operating expenditure

The graph below gives the breakdown per main expenditure group.

Remuneration
The actual expenditure on remuneration expressed as a percentage of the total expenditure
shows a slight decrease from 29,10% (group = 28,61%) in 2006/07 to 28,29% (group =
27,80%) in 2007/08. According to INCA a benchmark of less than 35% is acceptable. The total
remuneration cost and the allocation of individual items in a remuneration package differ from
municipality to municipality. For example, certain municipalities are more contracts intensive

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 CHAPTER FOUR: Report of the Chief Financial Officer

whereas others might be more labour intensive. In terms of the restructuring grant, the target for
remuneration as a percentage of revenue is 33%.

2007/08 2006/07
Description
Parent R’000 Group R’000 Parent R’000 Group R’000
Total operating expenditure 9 263 351 9 588 216 8 288 558 8 547 579
Total operating revenue 10 120 794 10 402 043 8 601 482 8 790 719
Employee remuneration 2 621 003 2 665 394 2 412 004 2 445 747
Ratio: Percentage of total expenditure 28,29% 27,80% 29,10% 28,61%
Ratio: Percentage of total revenue 25,89% 25,62% 28,04% 27,82%
Percentage growth in remuneration 8,66% 8,98% 11,64% 11,60%

4.2.2.4 Government grants and subsidies

The following table and graph show the amounts of grants, contributions and subsidies received
from the central government and the Gauteng Provincial Government, which amounts have been
included in the total revenue as shown below:

2007/08 2006/07
Description
Parent R’000 Group R’000 Parent R’000 Group R’000
Equitable share 1 101 416 1 101 416 1 002 650 1 002 650
Provincial health subsidy 22 669 22 669 21 499 21 499
Provincial ambulance subsidy 35 079 35 079 31 200 31 200
National safety grant 0 0 419 419
Provincial motor vehicle licences refund 66 191 66 191 58 252 58 252
Capex: Grants and donations 467 680 467 680 317 834 317 834
Opex: Grants and donations 149 974 149 974 42 486 42 486
Finance management grant 699 699 2 118 2 118
Restructuring grant 52 228 52 228 48 371 48 371
Department of Water Affairs and Forestry 18 790 21 063 14 265 14 265
MSIG 2 502 2 502 2 000 2 000
Roodeplaat Temba Water Services Trust 0 0 25 000 0
Other 0 0 0 700
1 917 228 1 919 501 1 566 094 1 541 794

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 CHAPTER FOUR: Report of the Chief Financial Officer

4.2.3.Debtors

Details regarding the debtors are provided in note 13 (long-term receivables), note 15 (con-
sumer debtors) and note 16 (other debtors) of the Notes to the Consolidated Annual Financial
Statements.

The long-term receivables showed a decrease of R56,240 million (14,5%). This decrease can
mainly be ascribed to a decrease in the arrangements regarding consumer debtors (decrease of
R17,998 million), a decrease in the sale of land (R4,102 million), a decrease in motor car loans
to officials (decrease of R5,919 million) owing to the phasing out of these motor car loans, and
a decrease in housing loan debtors (increase of R8,520 million).

In the group the loan of R1,506 million to Botselo Water (relating to the Sandspruit Works As-
sociation entity) was redeemed during 2007/08.

For the Municipality the consumer debtors increased with R363,674 million (11,6%) in total and
for the group the consumer debtors increased with R419,736 million (12,75%).

The increase in debt per customer classification is made up as shown below:

Parent Group
Customer classification Increase / Increase /
Total Total
(decrease) (decrease)
R-million R-million
R-million R-million
Households 2 348,333 299,935 2 550,883 355,997
Industrial/commercial 666,941 (148,013) 666,941 (147,913)
National and provincial government 49,143 (23,227) 49,143 (23,227)
Other 445,797 234,979 445,797 234,979
Total 3 510,214 363,674 3 712,763 419,736

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 CHAPTER FOUR: Report of the Chief Financial Officer

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

Parent Group
Increase/ Increase/
Age analysis group Total Total
(decrease) (decrease)
R-million R-million
R-million R-million
Current (0 to 30 days) 1 038,362 147,584 1 240,911 203,646
31 to 60 days 197,017 5,962 197,017 5,962
61 to 90 days 101,992 36,443 101,992 36,443
Over 91 days 2 172,843 173,685 2 172,843 173,685
Total 3 510,214 363,674 3 712,763 419,736

The other debtors (debtors other than consumer debtors – see note 16 for details) for the Mu-
nicipality decreased with R52,852 million (9,9%) in total. For the group, other debtors decreased
with R41,913 million (7,4%).

The RSC levies debtors decreased with R36,054 million. These decreases were counteracted by
an increase in other current debtors of R29,389 million, which can mainly be ascribed to an in-
crease in sundry rentals and sundry year-end debtors which include outstanding ambulance sub-
sidies and outstanding health subsidies, waste management bulk containers, Sandspruit Works
Association outstanding credit notes and amounts paid in advance. For the group the housing
debtors increased with R9,768 million.

4.2.3.1 Consumer debtors

The following is an indication of the effectiveness of credit control measures, as well as the ability
to convert debt into cash:

2007/08 2006/07
Description Parent Group Parent Group
R’000 R’000 R’000 R’000
Debits levied: Consumer debtors 7 019 976 7 105 978 5 920 710 5 991 373
Balance on 1 July 3 146 540 3 293 028 2 959 669 3 211 075
Balance on 30 June 3 510 214 3 712 763 3 146 540 3 293 028
Average balance 3 328 377 3 502 896 3 053 105 3 252 052
Days in the financial year 366 366 365 365
Turnover: Number of days 173 180 188 198
Turnover: Number of times (levies/average balance) 2,11 2,03 1,94 1,84

From the table it is clear that, although the number of days to recover debt decreased from 188
to 173 since 2006/07, the outstanding consumer debt of the Municipality is still negative. This
high turnover has serious implications for the cash flow of the Municipality. For the group the
number of days to recover debt decreased from 198 to 180.

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 CHAPTER FOUR: Report of the Chief Financial Officer

A collection rate (for the Municipality only) calculated on the total levies for a period compared
to the total payments received during the same period is used to measure revenue recovery. The
credit control policy and the actions taken in terms of the policy started producing better results,
since an average collection rate of 99,0% (2006/07 = 98,3%) was maintained by the Munici-
pality during the 2007/08 financial year.

4.2.4 Capital Expenditure and Financing (only for the Municipality)

The Municipality’s original approved capital expenditure budget for 2007/08 amounted to R2
315 840 000 and was accepted by National Treasury. This capital budget was amended by
means of an adjustments budget approved by the Council on 24 January 2008 to R2 071 179
988 in total, as a result of strategic units requesting to review the performance of the capital
programme. Reductions in the following grant funding projects were addressed:

• Housing Government Programme by R219 million; and

• Provincial Grants and Subsidies by R40 million.

Actual capital expenditure incurred during the year in respect of property, plant and equipment
amounted to R1 757 902 300. The actual capital expenditure is 28,7% more than the previ-
ous financial year, but only relates to a 84,9% performance against the adjusted budget for
2007/08. The actual expenditure is 15,1% less than the adjusted budget, which can mainly be
attributed to non-achieving on the SDBIP targets due to various reasons, for example:

• Delays due to geological conditions

• Workmanship quality and material acquisition problems

The actual grant receipts for the 2007/08 financial year with regard to housing projects was
R178 541 819 (top structures = R137 576 552). However, the actual capital expenditure on
housing projects realised R187 192 505 (top structures = R125 601 978).

Actual capital expenditure according to asset class

Type of asset Actual 2008 R Actual 2007 R
Infrastructure 1 384 562 498 1 089 227 810
Community 94 565 396 35 857 650
Heritage 0 0
Housing 186 983 791 61 150 290
Land and buildings 3 751 441 120 966 020
Other 88 039 174 58 642 235
Total 1 757 902 300 1 365 844 005

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The graph shows the distribution of property, plant and equipment according to the type.

The above property, plant and equipment were financed from the following sources:

Actual as
Original Adjusted Actual
Actual 2008 percentage of
Type of finance budget 2008 budget 2008 2007
R-million adjusted budget
R-million R-million R-million
2008 (%)
Council funding 1 488 090 1 492 008 1 279 822 85,7 1 041 958
Provincial grants and subsidies 224 410 183 410 127 299 69,4 17 377
Government housing grant 303 782 84 322 62 191 73,8 86 304
Municipal infrastructure grant (MIG) 236 267 234 108 208 975 89,3 184 824
National Electricity Regulator (NER) 37 400 52 400 52 228 99,7 28 629
Other funding 28 350 24 933 17 288 69,3 6 752
Total 2 318 299 2 071 180 1 757 902 84,9 1 365 844

The following is a graphic presentation according to financing sources:

When comparing the actual expenditure to the budgeted expenditure, the financing source of
capital projects plays an important role. The funding from own sources, which are primarily the
capital replacement reserve and the external financing fund (external loans taken up), can largely
influence the following aspects:

• Depreciation
• The raising of loans
• The cash flow of the Municipality

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4.2.5. Accounting Ratio

4.2.5.1 Current asset ratio

The current asset ratio mainly involves the financial resources used in the operating 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 current liabilities are covered by the current assets. A larger
coverage means a lower risk, since short-term debt can be paid out of short-term assets. The
following table shows the calculation of the operating capital ratio:

2007/08 2006/07
Description Parent Group Parent Group
R’000 R’000 R’000 R’000
CURRENT ASSETS:

Cash 43 236 214 534 69 349 261 106

Inventory 216 602 232 919 165 944 209 738
Debtors 2 629 953 2 664 115 2 479 056 2 503 499
Investments 660 689 704 873 969 958 1 033 013
Short-term portion of long-term debtors 103 377 103 377 27 840 27 840
Total 3 653 857 3 919 818 3 712 147 4 035 196

CURRENT LIABILITIES:

Creditors 2 179 649 2 284 660 2 089 566 2 238 284

Provisions 0 782 0 2 319
Short-term portion of long-term liabilities 172 573 189 530 232 569 249 521
Short-term portion of finance lease liabilities 154 231 154 231 97 125 97 125
Deposits 267 979 269 510 257 579 257 579
Overdrawn bank account 106 407 106 679 46 002 46 002
Total 2 880 839 3 005 392 2 722 841 2 890 830
Net operating capital 773 018 914 426 989 306 1 144 366
Current asset ratio 1,27:1 1,30:1 1,36:1 1,39:1
Current asset ratio excluding consumer debt of 90 days 0,57:1 0,58:1 0,63:1 0,70:1
and older

The ratio decreased slightly since 2006/07. This is because the current liabilities increased by
3,9% (group = 2,2%) whereas the current assets increased by 0,5% (group = 0,9%). The de-
crease in current assets can mainly be ascribed to the decrease in investments as well as a de-
crease in cash. The increase in current liabilities mainly lies with the increase in deposits and an
increase in the bank overdraft as well as an increase in trade creditors.

In the 2007/08 financial year finance leases were accounted for under liabilities for the first time.
However, the 2006/07 figures were restated accordingly.

The private sector sets a ratio of 2:1 as being acceptable, but a norm for local government is

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currently not available. If the consumer debtors of 90 days and older are excluded from the cal-
culation, the ratio decreases considerably (see the table above).

4.2.5.2 Quick asset ratio (acid test)

This ratio is a more accurate test of a local authority’s ability to settle its short-term debt. When
calculating this ratio, only assets that can be converted into cash are taken into account.

Since material and stock are for the local authority’s own use and are not for sale, they are not
included in the calculations. The private sector sets a ratio of 1:1 as being acceptable.

The figures that follow reflect the Municipality’s quick asset ratio for the following years:

2007/08 2006/07
Description Parent Group Parent Group
R’000 R’000 R’000 R’000
Current assets 3 653 857 3 919 818 3 712 147 4 035 196
Less: Inventory 216 602 232 919 165 944 209 738
Total 3 437 255 3 686 899 3 546 203 3 825 458
Current liabilities 2 880 839 3 005 392 2 722 841 2 890 830
Quick asset ratio 1,19:1 1,23:1 1,30:1 1,32:1
Quick asset ratio excluding consumer debt older than 90 0,44:1 0,50:1 0,57:1 0,63:1
days

If the consumer debtors of 90 days and older are excluded from the calculation the ratio de-
creases considerably (refer to table above).

4.2.5.3 Solvability

In this ratio, the total assets are compared to the total liabilities, and it shows the ability of the
Municipality to meet its obligations in the long term.

A ratio of less than one is an indication of insolvency. The following table shows the calculation
of the solvency ratio as shown overleaf:

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2007/08 2006/07
Description Parent Group Parent Group
R’000 R’000 R’000 R’000
TOTAL ASSETS:

Current assets 3 653 857 3 919 818 3 712 148 4 035 196
Long-term receivables 189 763 189 763 322 027 323 533
Property, plant and equipment 9 841 958z 10 261 837 8 450 806 8 898 619
Total 13 685 578 14 371 418 12 484 980 13 257 348

TOTAL LIABILITIES:

Current liabilities 2 880 839 3 005 392 2 722 841 2 890 830
Plus: Long-term loans 2 705 772 3 211 660 2 602 026 3 137 492
Non-current provisions 87 211 87 211 5 263 5 263
Lease liabilities 107 165 131 413 107 703 107 703
Reserves 6 430 191 6 430 192 6 285 833 6 288 888
Total 12 211 178 12 865 868 11 723 666 12 430 176
Solvability ratio 1,12: 1 1,12:1 1,06:1 1,07:1

The total assets of the Municipality increased with 9,6% (group = 8,4%) while the total liabilities
increased with only 4,2% (group = 3,5%), resulting in an increase in the solvability ratio as stated
above.

Property, plant and equipment increased with 16,5% (group = 15,3%) while external loans in-
creased with 3,9% (group = 2,4%) and the accumulated funds increased with 2,2%.

4.2.5.4 Total long-term debt to total revenue ratio

According to credit rating companies, the benchmark for local government is a ratio of less than
50%. The ratio decreased from 35,34% (group = 40,85%) to 31,02% (group = 35,44%) since
2006/07. This decrease can be ascribed to the fact that the total debt increased with only 3,3%
(group = 2,6%) in relation to the increase of 17,7% (group = 18,3%) in total revenue.

2007/08 2006/07
Description Parent Group Parent Group
R’000 R’000 R’000 R’000
Total debt 3 139 741 3 686 834 3 039 423 3 591 841
Total revenue 10 120 794 10 402 043 8 601 482 8 790 719
Ratio 31,02% 35,44% 35,34% 40,85%

4.2.5.5 Inventory turnover (only with regard to the Municipality)

Inventory turnover is considered a key measure of management efficiency. It is a measure of

how often, during the course of a financial year, a company sells and replaces its inventory. As

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 CHAPTER FOUR: Report of the Chief Financial Officer

a general rule, a higher ratio for inventory turnover is better. However, the standard varies dra-
matically from industry to industry. A ratio of 2,5 times per year is considered acceptable for the
large municipalities.

• June 2008: 2,8 times per year

• June 2007: 2,8 times per year

Although the value of the inventory of the Municipality increased since 2006/07 with R50,7 mil-
lion (the main factor is the increase in the electricity inventory for project material), the turnover
remained unchanged on 2,8 times per year. This can be attributed to the fact that the turnover is
an average calculated for all inventory items in all stores.

4.2.5.6 Overdraft (cashbook balance) plus short-term loans to total operating revenue

Municipality Group
June 2008: 2,76% 2,85%
June 2007: 3,24% 3,36%

According to credit rating companies, the benchmark is a ratio of less than 5%. The ratio im-
proved due to a decrease in the short-term portion of external loans (decrease of 25,8%) and an
increase in revenue of 17,7% since 2006/07. The group showed a decrease in the short-term
portion of external loans of 24,0% and an increase of 18,3% in revenue since 2006/07.

4.2.5.7 Cash to interest coverage

This ratio indicates to what extent a local authority can generate sufficient cash from its normal
activities to cover its external interest liabilities. If the ratio is less than 1:1, it may indicate future
cash flow problems. The ratio for the past two financial years is as follows:

2007/08 2006/07
Description Parent Group Parent Group
R’000 R’000 R’000 R’000
Cash generated from operations (net cash flow) 1 593 885 1 611 774 1 130 748 1 184 648
Interest paid on external loans 362 150 431 882 351 219 430 866
Ratio 4,40:1 3,73:1 3,22:1 2,75:1

The ratio shows an increase as the interest paid on external loans increased with 3,1% (group
= 0,2%) and the cash generated from operations increased with 40,9% (group = 36,1%) since
2006/07.

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 CHAPTER FOUR: Report of the Chief Financial Officer

4.2.5.8 Capital charges (interest and redemption) to total annual operating revenue

2007/08 2006/07
Description Parent Group Parent Group
R’000 R’000 R’000 R’000
Total operating revenue 10 120 794 10 402 043 8 601 482 8 790 719
Interest paid on external loans 362 150 431 882 351 219 430 866
Depreciation 542 316 581 372 628 929 668 720
904 466 1 013 254 980 148 1 099 586
Ratio 8,94% 9,74% 11,40% 12,50%

4.2.5.9 Debt to cash ratio

This ratio is a yardstick to measure the time (in years) that it will take a local authority to pay off
its debt (loans) from cash generated by operating activities. The ratio for the past two financial
years is as follows:

2007/08 2006/07
Description Parent Group Parent Group
R’000 R’000 R’000 R’000
Long-term debt 3 139 741 3 686 834 3 039 423 3 591 841
Cash generated from operations 1 593 885 1 611 774 1 130 748 1 184 648
Ratio 1,97:1 2,29:1 2,69:1 3,03:1

The ratio shows a decrease, as the long-term debt increased with 3,3% (group = 2,6%) while the
cash generated from operations increased with 40,9% (group = 36,1%) since 2006/07.

4.2.5.10 Financing to capital expenditure ratio

Local authorities normally finance their capital expenditure from external loans. The financing to
capital expenditure ratio enables the user to analyse the extent to which external loans are used
to finance capital expenditure. The ratio for the past two financial years is as shown in the table
below:

2007/08 2006/07
Description Parent Group Parent Group
R’000 R’000 R’000 R’000
Increase/(Decrease) in long-term loans 43 749 14 176 636 453 631 346
Increase/(Decrease) in finance lease liabilities 56 569 82 895 204 827 204 827
100 318 97 071 841 280 836 173
Cash used in capital expenditure 1 929 741 1 939 749 1 609 973 1 617 886
Ratio 0,05:1 0,05:1 0,52:1 0,51:1

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 CHAPTER FOUR: Report of the Chief Financial Officer

A ratio smaller than 1:1 is an indication that more cash was spent on infrastructure (capital
expenditure) than was borrowed. If this ratio exceeded 1:1 over several years, it indicates that
too much funding is obtained externally which may even mean that loans are used to finance
operating expenditure. This ratio decreased drastically since 2006/07 (also refer to note 31 to
the Consolidated Annual Financial Statements).

4.2.5.11 Repairs and maintenance to annual operating revenue

2007/08 2006/07
Description Parent Group Parent Group
R’000 R’000 R’000 R’000
Annual operating revenue 10 120 794 10 402 043 8 601 482 8 790 719
Repairs and maintenance 894 629 897 807 727 352 731 220
Percentage 8,84% 8,63% 8,46% 8,32%

4.2.5.12 Net debtors to total annual operating revenue

2007/08 2006/07
Description Parent Group Parent
Group
R’000 R’000 R’000
Annual operating revenue 10 120 794 10 402 043 8 601 482 8 790 719
Net debtors (excluding provision for bad debt) 2 629 953 2 664 115 2 479 056 2 503 499
Percentage 25,99% 25,61% 28,82% 28,48%

4.2.6 Credit Rating

The firm Global Credit Ratings performed a credit rating of the Municipality during November
2007 (based on the annual financial statements for the year ending 30 June 2007) and the fol-
lowing rating was awarded to the City of Tshwane (stable rating outlook):

• Long term - A+ (single A plus): High credit quality. Protection factors are good. However, risk
factors are more variable and greater in periods of economic stress.
• Short term - A1 (single A one): High certainty of timely payment. Liquidity factors are excel-
lent and supported by good fundamental protection factors. Risk factors are minor.

4.2.7 Municipal Entities

4.2.7.1 Viable municipal entities

Of the entities evaluated the following were found to be viable and their restructuring in com-
pliance with the Municipal Finance Management Act and the Local Government Systems Act is
underway:

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 CHAPTER FOUR: Report of the Chief Financial Officer

• Civirelo Water
• Sandspruit Works Association
• Housing Company Tshwane
• Roodeplaat Temba Water Services Trust (the trust will be dissolved on 1 July 2008)
• Tshwane Economic Development Agency (newly created – not in full operation yet)

4.2.7.2 Entities not viable and to be liquidated

The following companies are not viable:

• Enterprise South Africa (liquidation finalised)

• Tradepoint Pretoria
• Tshwane Centre for Business Information and Support (Cenbis)
• Lebone Municipal Finance Corporation

4.2.7.3 Consolidation of municipal entities

Consistent with the previous three financial years, separate consolidated financial statements
were compiled for the City of Tshwane and its operational municipal entities, namely:

• Housing Company Tshwane

• Sandspruit Works Association
• Civirelo Water
• Roodeplaat/Temba Water Services Trust
• Tradepoint Pretoria (not viable – liquidation underway – no statements available for 2007/08)

4.2.8 Challenges Experienced During 2007/08 (by the Municipality)

4.2.8.1 Implementation of Accounting Standards

The City of Tshwane experienced problems with the implementation of certain accounting stan-
dards during the compilation of the 2006/07 financial statements and therefore had to make use
of the exemptions granted by National Treasury in Government Gazette 30013 of 29 June 2007.

These exemptions are explained in paragraph 1 of the Accounting Policies included in the Annual
Financial Statements.

As required by the stipulations of the Government Gazette, implementation plans were drawn up
and submitted to National Treasury during October 2007 and March 2008.

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 CHAPTER FOUR: Report of the Chief Financial Officer

4.2.8.2 Purification of Asset Register and establishment of Finance Lease Register

A project was undertaken to ensure a compliant asset register and purify the asset register data.
The purification for the 2006/07 and 2007/08 financial years has been finalised and the com-
pliant asset register is available on an external system, as the current SAP system could not ac-
commodate all the required fields and transactions. The required restatements were included in
the annual financial statements.

The project was extended to include the accounting for finance leases. The accounting for the
finance leases was done on the 80/20 principle. The required restatements were included in the
annual financial statements.

The 2007/08 exercise was a challenge, but the 2008/09 exercise will be an even bigger chal-
lenge, as the information on the asset register in the external systems will have to be loaded and
maintained on the SAP system. The maintenance of the lease register will also have to be ad-
dressed as a matter of urgency.

4.2.9 Appreciation

I am grateful to the Executive Mayor, Members of the Mayoral Committee, Councillors, Office of
the Municipal Manager and Strategic Executive Directors for the support they have given me and
my personnel during the 2007/08 financial year. A special word of appreciation to everybody
for the months of hard work, sacrifices and concentrated efforts during the financial year to en-
able my Department to finalise and submit the annual financial statements within the prescribed
period of two months after year end (ie 31 August) as well as the consolidated annual financial
statements within the prescribed period of three months after year end (ie 30 September).

N V Makhari
Chief Financial Officer

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 CHAPTER FOUR: Accounting Policies

>> 4.3 ACCOUNTING POLICIES

1 Basis of Presentation

The annual financial statements have been prepared on an accrual basis of accounting and are
in accordance with the historical cost convention unless otherwise stated.

These financial statements have been prepared in accordance with the Standards of Generally
Recognised Accounting Practices (GRAP) and the Standards of Generally Accepted Municipal
Accounting Practices (GAMAP) prescribed by the Minister of Finance in terms of General Notice
991 and 992 of 2005. These standards are summarised as follows:

GRAP 1 Presentation of financial statements
GRAP 2 Cash flow statements
GRAP 3 Accounting policies, changes in accounting estimates and errors
GAMAP 4 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

Accounting policies for material transactions, events or conditions not covered by the above
GRAP and GAMAP standards have been developed in accordance with paragraphs 7, 11 and
12 of GRAP 3. These accounting policies and the applicable disclosures have been based on the
South African Statements of Generally Accepted Accounting Practices (SA GAAP), including any
interpretations of such statements issued by the Accounting Practices Board.

The Minister of Finance has, in terms of General Notice 522 of 2007, exempted compliance with
certain of the above standards and aspects or parts of these standards. Details of the exemptions
applicable to the Municipality have been provided in the notes to the annual financial statements
(also refer to the relevant paragraph in the accounting policies).

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 CHAPTER FOUR: Accounting Policies

The entity has elected to early adopt the following requirements in GRAP, GAMAP or SA GAAP,
which were exempted in terms of General Notice 552 of 2007:

Standard no Standard Extent of exemption from standard Exemption period
title
GAMAP 17 Property, plant Review of useful life of items of PPE recognised in the For the 2006/07 and
and equipment annual financial statements [paragraphs 59-61 and 2007/08 financial
(PPE) 77] years
Review of depreciation method applied to PPE recog-
nised in the annual financial statements [paragraphs
62 and 77]
The entire standard to the extent that it relates to water For the 2006/07 and
stock that was not purchased by the Municipality 2007/08 financial
years
IAS 17 (AC 105) Leases Recognising operating lease payments/receipts on a For the 2006/07 and
straight-line basis if the amounts are recognised on the 2007/08 financial
basis of the cash flows in the lease agreement. [SAICA years
circular 12/06, paragraphs 8-11 and paragraphs 33,
34, 50, 51 of IAS 17 (AC 105)]
GAMAP 9 Revenue Initial measurement of fair value discounting all future For the 2006/07 and
receipts using an imputed rate of interest (SAICA circu- 2007/08 financial
lar 09/06, paragraph 12) years
IAS 39 (AC 133) Financial Initially measuring financial assets and financial liabili- For the 2006/07 and
instruments: ties at fair value (SAICA circular 09/06, paragraph 43, 2007/08 financial
Recognition AG 70, AG 64 and AG 85 of IAS 39/AC 133) years
and measure-
ment
IAS 20 (AC 134) Accounting for Entire standard excluding paragraph 24 and 26, For the 2006/07 and
government paragraph 25 of GAMAP 17 and paragraphs 42 – 46 2007/08 financial
grants and of GAMAP 9 years
disclosure of
government
assistance

The principal accounting policies adopted in the preparation of these annual financial statements
and which have been consistently applied, except where an exemption has been granted, are
disclosed below.

Assets, liabilities, revenue and expenses have not been offset except when offsetting is required
or permitted by a standard of GAMAP or GRAP.

2 Basis of Consolidation

Investments in associates, subsidiaries and joint ventures are carried at cost in the annual finan-
cial statements of the Municipality. Separate consolidated financial statements are prepared to
account for the Municipality’s share of the net assets and post-acquisition results of these invest-
ments.

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 CHAPTER FOUR: Accounting Policies

The consolidated annual financial statements incorporate the financial statements of the Munici-
pality and municipal entities controlled by the Municipality.

The results of municipal entities acquired or disposed during the year are included in the con-
solidated Statement of Financial Performance from the effective date of acquisition or up to the
effective date of disposal, as appropriate.

Where necessary, adjustments are made to the annual financial statements of municipal enti-
ties to bring the accounting policies used into line with those used by the Municipality and other
municipal entities included in the group.

2.1 Presentation Currency

These annual financial statements are presented in South African rand and are rounded to the
nearest rand.

2.2 Going Concern Assumption

These annual financial statements have been prepared on a going concern basis, except for
those municipal entities which are currently being liquidated.

2.3 Property, Plant and Equipment (PPE)

2.3.1 Fixed assets are stated –

• at historical cost less accumulated depreciation and any write-downs, or
• at fair value (market value) at date of acquisition less accumulated depreciation where assets
have been acquired by grant or donation.

Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent expenditure
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset,
as appropriate, only when it is probable that future economic benefits or service potential over
the total life of the asset in excess of the most recently assessed standard of performance of the
existing asset will flow to the Municipality.

All other repairs and maintenance are charged to the Statement of Financial Performance during
the financial period in which they are incurred.

The cost of an item of property, plant and equipment acquired in exchange for a monetary or
non-monetary asset, or a combination of monetary and non-monetary assets, is measured at its

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 CHAPTER FOUR: Accounting Policies

fair value. If the acquired item could not be measured at its fair value, its cost was measured at
the carrying amount of the asset given up.

The difference between the depreciation based on the revalued carrying amount of the asset
charged to the Statement of Financial Performance and the depreciation based on the asset’s
original cost is transferred from other reserves to the accumulated surplus/deficit.

2.3.2 Depreciation

Depreciation is recognised on a straight line basis over the estimated useful life of the asset to its
residual value from the day that the asset is ready for use. Land is not depreciated.

Depreciation on other assets is calculated using the straight-line method to allocate their cost or
revalued amounts to their residual values over their estimated useful lives, as follows:

Estimated useful lives of assets:

Asset category Years Asset category Years

Infrastructure Other
Roads and paving 30 Buildings 30
Pedestrian malls 30 Specialist vehicles 10
Electricity 20-30 Other vehicles 5
Water 15-20 Office equipment 3-7
Sewerage 15-20 Furniture and fittings 7-10
Housing 30 Watercraft 15
Community Bins and containers 5
Buildings 30 Bins and containers 5
Recreational facilities 20-30 Other plant and equipment 2-5
Security 5 Landfill sites and quarries 1 – 50

Residual value is what the asset would currently receive if in the condition it would be at the end
of its useful life. The asset’s residual value and useful life are reviewed, and adjusted if appropri-
ate, at each reporting date.

The actual useful life of assets, residual values and the depreciation method are assessed annu-
ally and may vary depending on a number of factors.

In reassessing an asset life, factors such as technological innovation, product life cycle and main-
tenance programme are taken into account.

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 CHAPTER FOUR: Accounting Policies

3 Impairment of property, plant and equipment

The City of Tshwane adopted the exemptions granted in Government Gazette 30013 of 29 June
2007 with regard to the impairment of assets.

4 Disposal of property, plant and equipment

The gain or loss on the disposal or retirement of an item of property, plant and equipment is
determined as the difference between the sales proceeds and the carrying value of the asset on
the date of disposal, and is recognised in the Statement of Financial Performance.

5 Heritage assets

These are assets that are defined as culturally significant resources and are not depreciated, as
they are regarded as having an infinite useful life. However, if improvements to heritage assets
are conducted and registered as subassets and the useful life of the improvements can be deter-
mined, the depreciation charge of the relevant property, plant and equipment category is used
for the depreciation of the subasset which was capitalised against the heritage asset.

6 Land

Land is not depreciated as it is deemed to have an indefinite useful life.

7 Incomplete construction work

Incomplete construction work is stated at historical cost. Depreciation only commences when the
asset is commissioned into use.

8 Investment Property

Investment property, which is property held to earn rental revenue or for capital appreciation, is
stated at cost less accumulated depreciation and accumulated impairment losses. Depreciation
is calculated on cost, using the straight-line method over the useful life of the property, which is
30 years.

The City of Tshwane adopted the exemptions granted in Government Gazette 30013 of 29 June
2007 to the extent that the property is accounted for under GAMAP 17.

9 Intangible Assets

The City of Tshwane adopted the exemptions granted in Government Gazette 30013 of 29 June

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 CHAPTER FOUR: Accounting Policies

2007 with regard to the recognition, measurement and disclosure of intangible assets except for
computer software.

Intangible assets are carried at cost less accumulated amortisation and any impairment losses.
Software is amortised on a straight-line basis over its anticipated useful life.

Generally, costs associated with developing computer software programmes are recognised
as an expense as incurred. However, costs that are clearly associated with an identifiable and
unique product, which will be controlled by the Municipality and have a probable benefit exceed-
ing the cost beyond one year, are recognised as intangible assets.

Expenditure which enhances and extends the benefits of computer software programmes beyond
the original life of the software is capitalised. Computer software development costs recognised
as assets are amortised using the straight-line method over their useful lives. Costs associated
with the maintenance of existing computer software programmes are expensed as incurred.

10 Agricultural/Biological Assets

Agricultural/biological assets, which are defined as living animals or plants, are recognised on
the Statement of Financial Position of the Municipality, if the Municipality –

• controls the asset as a result of a past event;

• regards the inflow of future economic benefits from the use of the asset to be probable; and
• is able to measure the fair value of the asset reliably. This implies that an active market has
to exist for the agricultural asset.

Agricultural/biological assets are stated at fair value less estimated point of sale costs with any
resultant gain or loss recognised in the Statement of Financial Performance.

11 Inventory

Net realisable value is the estimated selling price in the ordinary course of business, less appli-
cable variable selling expenses.

Consumable stores, raw materials, work in progress and finished goods are valued at the lower
of cost and net realisable value. In general, the basis of determining cost is the weighted average
cost of commodities. If inventories are to be distributed at no charge or for a nominal charge they
are valued at the lower of cost and current replacement cost.

Land held for development, including land in the process of development until legal completion
of the sale of the asset, is initially recorded at cost.

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 CHAPTER FOUR: Accounting Policies

Where, through deferred purchase credit terms, cost differs from the nominal amount which will
actually be paid in settling the deferred purchase terms liability, no adjustment is made to the cost
of the land, the difference being charged as a finance cost.

Unsold properties are valued at the lower of cost and net realisable value on a weighted average
cost basis. Direct costs are accumulated for each separately identifiable development. Cost also
includes a portion of overhead costs, if this relates to development.

Cost of inventory comprises all costs of purchase, cost of conversion and other cost incurred in
bringing the inventory to its present location and condition.

Redundant and slow-moving inventories are identified and written down from cost to net realis-
able value with regard to their estimated economic or realisable value. Consumables are written
down with regard to their age, condition and utility.

The City of Tshwane adopted the exemptions granted in Government Gazette 30013 of 29 June
2007.

12 Reserves

The Municipality creates and maintains reserves in terms of specific requirements.

12.1 Capital Replacement Reserve (CRR)

To finance the provision of infrastructure and other items of property, plant and equipment,
amounts are transferred from the Statement of Financial Performance to the Capital Replacement
Reserve in terms of the implementation guidelines for GAMAP/GRAP.

These transfers from the net surplus may only be made if they are backed by cash. The amount
transferred to the CRR is based on the Municipality’s need to finance future capital projects in-
cluded in the Integrated Development Plan. The following provisions are set for the creation and
utilisation of the CRR:

• The cash which backs up the CRR is invested until it is used. The cash may only be invested
in accordance with the investment policy of the Municipality.
• Interest earned on the CRR investment is recorded as part of total interest earned in the State-
ment of Financial Performance.
• The CRR may only be used for the purpose of purchasing items of property, plant and equip-
ment for the Municipality and may not be used for the maintenance of these items.
• Whenever an asset is purchased out of the CRR, an amount equal to the cost price of the as-
set purchased is transferred from the CRR into a future depreciation reserve called the Capi-

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 CHAPTER FOUR: Accounting Policies

talisation Reserve (CR). This reserve is equal to the remaining depreciable value (book value)
of assets purchased out of the CRR. The Capitalisation Reserve is used to offset depreciation
charged on assets purchased out of the CRR to avoid double taxation of the consumers.
• If a gain is made on the sale of assets previously purchased out of the CRR, the gain on these
assets sold is reflected in the Statement of Financial Performance.

12.2 Capitalisation Reserve

On the implementation of GAMAP/GRAP, the balance on certain funds, created in terms of the
various provincial ordinances applicable at the time, which had historically been used for the
acquisition of items of property, plant and equipment, have been transferred to a Capitalisation
Reserve instead of the accumulated surplus/(deficit) in terms of a directive (budget circular) issued
by National Treasury.

The purpose of the Capitalisation Reserve is to promote consumer equity by ensuring that the
future depreciation expenses that will be incurred over the useful lives of these items of property,
plant and equipment are offset by transfers from this reserve to the accumulated surplus/(deficit).
The balance on the Capitalisation Reserve equals the carrying value of the items of property,
plant and equipment financed from the former legislated funds. When items of property, plant
and equipment are depreciated, a transfer is made from the Capitalisation Reserve to the ac-
cumulated surplus/(deficit).

When an item of property, plant and equipment is disposed, the balance in the Capitalisation
Reserve relating to such item is transferred to the accumulated surplus/(deficit).

12.3 Government Grant Reserve

When items of property, plant and equipment are financed from government grants, a transfer
is made from the accumulated surplus/(deficit) to the Government Grant Reserve equal to the
government grant recorded as revenue in the Statement of Financial Performance in accordance
with a directive (budget circular) issued by National Treasury.

When such items of property, plant and equipment are depreciated, a transfer is made from the
Government Grant Reserve to the accumulated surplus/(deficit)

The purpose of this policy is to promote community equity by ensuring that the future depreciation
expenses that will be incurred over the useful lives of government grant-funded items of property,
plant and equipment are offset by transfers from this reserve to the accumulated surplus/(deficit).
When an item of property, plant and equipment financed from government grants is disposed,
the balance in the Government Grant Reserve relating to such item is transferred to the accumu-
lated surplus/(deficit).

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 CHAPTER FOUR: Accounting Policies

12.4 Self-insurance Reserve

A Self-insurance Reserve has been established and, subject to external insurance where deemed
necessary, covers claims that may occur. Premiums are charged to the respective services taking
into account claims history and replacement value of the insured assets.

• Contributions to and from the reserve are 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 amount of insurance premiums paid to external insurers is regarded as an expense
and must be shown as such in the Statement of Financial Performance. The premiums do not
affect the Self-insurance Reserve.
• Claims received from external insurers are used in the calculation of a profit or loss on the
scrapping of damaged assets and are therefore effectively recorded in the Statement of Fi-
nancial Performance.
• Claims received to meet repairs of damages on assets are reflected as income in the State-
ment of Financial Performance.

The Self-insurance Reserve is based on recognised insurance industry principles. In determining

the level of capacity required an agreed methodology has been adopted. The calculation of the
required capacity of the Self-insurance Reserve is consistently applied annually based on the fol-
lowing methodology:

• Determination of the forecast surplus (free) capacity within the Self-insurance Reserve
• The following liabilities are taken into account in determining this surplus capacity:
o Reported known outstanding claims
o Statistically forecast losses for the remainder of the underwriting period
(IBNR = claims incurred but not yet reported)
o Probability and quantification of a catastrophe loss
• Comparison of the surplus (free) capacity to the declared value of the highest service delivery
asset to determine the shortfall that exists, based on the assumption that sufficient capacity
will be built up to cover that asset through the Self-insurance Reserve over an agreed period
of time
• Spreading of the shortfall over a five-year period (in terms of the Long-term Insurance Strat-
egy)
• Adjustment for inflation with the agreed relevant indices
• Determination of the annual premium contribution to reach the target capacity over a five-
year period
• Application of a probability and affordability factor to the ideal premium contribution to
determine the budgeted premium contribution over a five-year period

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 CHAPTER FOUR: Accounting Policies

12.5 Self-insurance Future Depreciation Reserve

An amount equal to the carrying value of items of property, plant and equipment that had his-
torically been used for the acquisition of property, plant and equipment from the Self-insurance
Reserve has been transferred to a Self-insurance Future Depreciation Reserve instead of the ac-
cumulated surplus/(deficit).

The purpose of this reserve is to promote consumer equity by ensuring that the future deprecia-
tion expenses that will be incurred over the useful lives of these items of property, plant and equip-
ment are offset by transfers from this reserve to the accumulated surplus/(deficit).

The balance on the Self-insurance Future Depreciation Reserve equals the carrying value of the
items of property, plant and equipment financed from the former Self-insurance Reserve. When
items of property, plant and equipment are depreciated, a transfer is made from the Self-insur-
ance Future Depreciation Reserve to the accumulated surplus/(deficit). When an item of property,
plant and equipment is disposed, the balance in the Self-insurance Future Depreciation Reserve
relating to such item is transferred to the accumulated surplus/(deficit).

13 COID Reserve

The Municipality has been exempted from making contributions to the Compensation Commis-
sioner for Occupational Injuries and Diseases (COID). In terms of this exemption the Municipality
has established a COID Reserve to offset claims from employees.

Amounts are transferred to the COID Reserve from the accumulated surplus based on the statu-
tory rate of contributions set out in the Compensation for Occupational Injuries and Diseases
Act, 1993 (Act 130 of 1993) as well as additional amounts deemed necessary to ensure that the
balance of the reserve is adequate to offset potential claims.

Contributions to the COID Reserve are based on 1% of the annual remuneration of employees
who qualify for COID benefits. All employees earning more than R189 840 per year are rein-
sured by what is called a “COID Wrap-around Policy”.

Claims are paid as determined by the Compensation Commissioner and are reflected in the
Statement of Financial Performance. Claims are settled by transferring a corresponding amount
from the COID Reserve to the accumulated surplus in the Statement of Changes in Net Assets.

14 Donations and public contributions

Revenue received from donations and public contributions may be transferred to the Capital
Replacement Reserve (CRR) and used via the CRR to finance items of property, plant and equip-
ment.

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 CHAPTER FOUR: Accounting Policies

15 Capital Reserve account

The Capital Reserve is to be created by the borrower and to be held in the Capital Reserve Ac-
count for the repayment of costs of upgrades, etc required by the operating agreement.

16 Debt Service Reserve account

The Debt Service Reserve is to be created by the borrower and to be held in the Debt Service
Reserve account. If the required level is exceeded the excess can be deposited in the distribution
account. The amount in the account will be used for the repayment of the term loan.

17 Operating Reserve account

The Operating Reserve is to be created by the borrower and to be held in the Debt Service Re-
serve account for the repayment of operating costs in respect of the water project.

18 Housing Development Fund

Sections 15(5) and 16 of the Housing Act, 1997 (Act 107 of 1997), which came into operation
on 1 April 1998, require that the Municipality maintain a separate housing operating account.
This legislated separate operating account will be known as the Housing Development Fund.

The Housing Act also requires, in terms of section 14(4)(d)(iii)(aa) read with, inter alia, section
16(2), that the net proceeds of any letting, sale of property or alienation, financed previously
from government housing funds, be paid into a separate operating account and be used by the
Municipality for housing development subject to the approval of the MEC responsible for hous-
ing.

The following provisions are set for the creation and use of the Housing Development Fund:

• The Housing Development Fund has its own separate bank account/allocated investments
and is backed by cash.
• Any contributions to or payments from the fund are shown as transfers in the Statement of
Changes in Net Assets.
• Interest earned on the investments backing up this fund is recorded as part of interest earned
in the Statement of Financial Performance and can be transferred via the Statement of
Changes in Net Assets to the Housing Development Fund.
• Any cash-backed surplus/deficit on the Housing Statement of Financial Performance must be
transferred to the Housing Development Fund.

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 CHAPTER FOUR: Accounting Policies

19 Provisions

Provisions are recognised when the Municipality has a present legal or constructive obligation as
a result of a past event, when it is probable that an outflow of resources will be required to settle
the obligation and when the amount can be reliably estimated. Provisions are not recognised for
future operating losses.

Where there are a number of similar obligations, the likelihood that an outflow will be required
in settlement is determined by considering the class of obligations as a whole. A provision is
recognised even if the likelihood of an outflow with respect to any one item included in the same
class of obligations may be small.

Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate.
Provisions are measured at the present value of the expenditures expected to be incurred to settle
the obligation. The increase in the provision due to passage of time is recognised as interest
expense.

19.1 Clearing of alien vegetation

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 exist.

19.2 Cleaning up of illegal dumping

Currently the Municipality is cleaning up illegal dumping on an ongoing basis as part of mainte-
nance; therefore there is no cleaning backlog that needs to be erased. No provision is currently
made for the cleaning up of illegal dumping.

19.3 Landfill sites

The Municipality has an obligation to rehabilitate its landfill sites in terms of its licence stipula-
tions. A provision has been established in 2007/08. The amount of the provision is recognised
at the present value of the expenditure expected to be required to settle the obligation, and is
carried at amortised cost.

19.4 Quarries

In terms of the Mineral and Petroleum Resources Development Act, 2002 (Act 28 of 2002),
section 52 (2)(d), the City of Tshwane is required to rehabilitate its quarries and borrow pits af-
ter these quarries and pits have been closed. The amount of the provision is recognised at the

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 CHAPTER FOUR: Accounting Policies

present value of the expenditure expected to be required to settle the obligation, and is carried
at amortised cost.

20 Retirement Benefits

20.1 Pension, provident and retirement funds

The Municipality and its employees contribute to various pension, provident and retirement funds
and its councillors contribute to the Pension Fund for Municipal Councillors.

The retirement benefits are calculated in accordance with the rules of the funds. Full actuarial val-
uations are performed by the relevant funds on a regular basis. The City of Tshwane accounted
for pension funds in terms of the exemptions granted in Government Gazette 30013 of 29 June
2007, in which no provision was created but only the contributions disclosed.

Current contributions are charged against the operating account of the Municipality at a percent-
age of the basic salary paid to employees, or allowances in the case of councillors.

Pension contributions in respect of employees who are not members of a pension fund are recog-
nised as an expense when incurred.

A provision is raised as the best estimate of the current cost of paying future pensions to employ-
ees who have become disabled as a result of injuries sustained while on duty.

20.2 Medical Aid: Continued members

The Municipality provides certain post-retirement medical benefits by funding the medical aid
contributions of certain retired members of the Municipality. According to the rules of the medical
aid funds with which the Municipality is associated, a member (who is on the current conditions of
service) who is on retirement, is entitled to remain a continued member of such medical aid fund,
in which case the Municipality is liable for a certain portion of the medical aid membership fee.

The City of Tshwane accounted for medical aid in terms of the exemptions granted in Govern-
ment Gazette 30013 of 29 June 2007, in which no provision was created but only the contribu-
tions disclosed.

21 Leases

The City of Tshwane adopted the exemptions granted in Government Gazette 30013 of 29 June
2007 with regard to operating leases.

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 CHAPTER FOUR: Accounting Policies

21.1 The Municipality as lessee

The City of Tshwane leases certain property, plant and equipment. Leases of property, plant and
equipment where the City of Tshwane assumes substantially all the risks and rewards of owner-
ship are classified as finance leases. Finance lease assets and liabilities are recognised at the
inception of the lease at the lower of the fair value of the leased asset and the present value of
the future minimum lease payments.

Each lease payment is allocated between the liability and finance charges so as to achieve a
constant rate on the finance balance outstanding. The corresponding rental obligations, net of
finance charges, are included in other long-term payables.

The interest element of the finance cost is charged to the Statement of Financial Performance over
the lease period so as to produce a constant periodic rate of interest on the remaining balances
of the liability for each period. The property, plant and equipment acquired under finance leases
are depreciated over the shorter of the useful life of the asset or the lease term.

Operating leases are those leases which do not fall within the scope of the above definition.
Payments made under operating leases are charged against income on a straight-line basis over
the period of the lease.

The Municipality will not incur a foreign currency lease liability other than that allowed by the
Municipal Finance Management Act, 2003 (Act 56 of 2003).

21.2 The Municipality as lessor

When assets are leased out under a finance lease, the present value of the lease payments is
recognised as a receivable. The difference between the gross receivable and the present value of
the receivable is recognised as unearned finance income.

Lease income is recognised over the term of the lease using the net investment method, which
reflects a constant periodic rate of return.

When assets are leased out under an operating lease, the asset is included in the Statement of
Financial Position based on the nature of the asset.

22 Financial Instruments

The City of Tshwane adopted the exemptions granted in Government Gazette 30013 of 29 June
2007 with regard to IFRS 5 and IFRS 7.

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 CHAPTER FOUR: Accounting Policies

22.1 Financial assets

The City of Tshwane classifies its financial assets in the following categories:

• Loans and receivables

• Held to maturity
• Available for sale

The classification depends on the purpose for which the financial assets were acquired. Man-
agement determines the classification of its financial assets at initial recognition. With regard to
reclassifications of financial assets, the entity shall not reclassify a financial instrument into or out
of the fair value through profit or loss category while it is held or issued.

(a) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable pay-
ments that are not quoted in an active market. They are included in current assets, except
for maturities greater than 12 months after the reporting date. These are classified as non-
current assets. The City of Tshwane’s loans and receivables comprise “trade receivables and
other receivables” and cash and cash equivalents.

(b) Held-to-maturity investments

Held-to-maturity (HTM) investments are financial assets with fixed or determinable payments
and fixed maturity where the entity has the positive intent and ability to hold the investment to
maturity. These investments have been normally encumbered and therefore must be held to
maturity. The value of the investments is recorded at trade date.

HTM financial instruments created by the Municipality and not held for trading are recog-
nised at amortised cost using the effective interest rate method. Amortised cost is the amount
at which the financial asset was measured at initial recognition minus principal repayments,
plus or minus the cumulative amortisation of any difference between that initial amount and
the maturity amount and minus any write-down for impairment of uncollectability.

(c) Available-for-sale financial assets

Available-for-sale financial assets are non-derivatives that are either designated in this cat-
egory or not classified in any of the other categories. They are included in non-current assets
unless management intends to dispose of the financial asset within 12 months of the report-
ing date.

Regular purchase and sales of financial assets are recognised on the trade date – the date
on which the City of Tshwane commits to purchasing or selling the asset. Investments are
initially recognised at fair value plus transaction costs for all financial assets not carried at

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 CHAPTER FOUR: Accounting Policies

fair value through profit or loss. Financial assets carried at fair value through profit or loss
are initially recognised at fair value, and transaction costs are expensed in the Statement of
Financial Performance.

Offsetting of financial assets and liabilities

A financial asset and a financial liability are only offset and the net amount presented in the
Statement of Financial Performance when and only when –

(a) the City of Tshwane has a legally enforceable right to set off the recognised
amount; and
(b) the City of Tshwane intends either to settle on a net basis, or realise the asset
and settle the liability simultaneously.

In accounting for a transfer of a financial asset that does not qualify for derecognition, the City
of Tshwane will not offset the transferred asset and the associated liability.

Derecognition
Financial assets are derecognised when the right to receive cash flows from the investments has
expired or has been transferred, and the Municipality has transferred virtually all risks and re-
wards of ownership. Available-for-sale financial assets and financial assets at fair value through
profit or loss are subsequently carried at fair value. Loans and receivables are carried at amor-
tised cost using the effective interest method.

Impairment
Where investments have been impaired, the carrying value is adjusted by the impairment loss,
which is recognised as an expense in the Statement of Financial Performance in the period that
the impairment is identified. Impairment losses recognised in the Statement of Financial Perfor-
mance on equity instruments are not reversed through the Statement of Financial Performance.
Impairment testing of trade receivables is described in note 15.3.

Disposal
On disposal of an investment, the difference between the net disposal proceeds and the carrying
amount is charged or credited to the Statement of Financial Performance.

Counterparty exposure
The City of Tshwane limits its counterparty exposure arising from the money market by dealing
only with well-established financial institutions confirmed by the rating agency appointed by the
Chief Financial Officer.

The credit ratings of these institutions are reviewed quarterly and investments are spread across
different types of approved investments and institutions.

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 CHAPTER FOUR: Accounting Policies

Hedging
Hedging is not applicable to the accounting treatment of financial instruments in the City of
Tshwane.

Derivative financial instruments

Derivative financial instruments, principally interest rate swap contracts, are used by the City of
Tshwane in its management of financial risks. Derivative financial instruments are initially mea-
sured at fair value on the contract date and are remeasured to fair value at subsequent reporting
dates. Payments and receipts under interest rate swap contracts are recognised in the Statement
of Financial Performance on a basis consistent with the corresponding fluctuations in the interest
payment on floating rate financial liabilities. The carrying amounts of interest rate swaps, which
comprise net interest receivables and payables accrued, are included in assets and liabilities
respectively.

22.2 Interest-bearing borrowings

Interest-bearing borrowings are recognised initially at fair value, net of transaction costs incurred.
It should also be added that interest-bearing borrowings are classified as non-current and current
liabilities.

Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net
of transaction costs) and the redemption value is recognised in the Statement of Financial Perfor-
mance over the period of the borrowings using the effective interest method.

Interest-bearing borrowings are classified as non-current and current liabilities unless the Munici-
pality has an unconditional right to defer settlement of the liability for at least 12 months after
the reporting date.

The interest risk is managed by maintaining an appropriate mix between fixed and variable rate
borrowings. The Municipality borrows more than 50% of funds at a fixed rated to reduce the risk
of interest fluctuations.

22.3 Accounts receivable

Trade receivables

Trade receivables are recognised initially at fair value and subsequently measured at amortised
cost using the effective interest method, less provision for impairment. A provision for impairment
of trade receivables is established when there is objective evidence that the Municipality will not
be able to collect all due amounts according to the original terms of the receivables.

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 CHAPTER FOUR: Accounting Policies

Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or
financial reorganisation and default or delinquency in payments (more than 30 days overdue)
are considered indicators that the trade receivable is impaired. The amount of the provision is
the difference between the asset’s carrying amount and the present value of estimated future
cash flows, discounted at the original effective interest rate. The carrying amount of the asset
is reduced through the use of a provision for bad debt account, and the amount of the loss is
recognised in the Statement of Financial Performance. When a trade receivable is uncollectable,
it is written off against the provision for bad debt account for trade receivables. Subsequent re-
coveries of amounts previously written off are credited in the Statement of Financial Performance.

Accounts receivable are carried at anticipated realisable value. An estimate is made for doubtful
receivables based on a review of all outstanding amounts at year end. Bad debts are written off
during the year in which they are identified. Amounts with regard to arrangement of consumer
debtors are classified as long-term receivables.

22.3.1 Provision for bad debt

Provision for bad debt is made by means of an annual contribution of electricity and water levies,
debtor’s revenue from Fire Brigade Services, Ambulance Services and Rentals, but excluding the
Tshwane Market.

The annual contribution is determined by calculating the estimated non-payment by debtors for
the financial year. The percentage contribution is calculated during the budget process each year
and reviewed at year end.

23 Accounts receivable

23.1 Trade creditors

Trade payables are recognised initially at fair value and subsequently measured at amortised cost
using the effective interest method.

23.2 Accrued leave pay

Liabilities for annual leave are recognised as they accrue to employees. Provision is based on the
potential liability (value of leave credits as at 30 June) of the Municipality.

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 CHAPTER FOUR: Accounting Policies

24 Investment in municipal entities

Municipality: Investments in municipal entities under the ownership control of the Municipality are carried at cost
in the Municipality’s unconsolidated annual financial statements.
Group: The results and assets and liabilities of municipal entities are incorporated with the group annual
financial statements using the equity method of accounting.

Where the Municipality transacts with its municipal entities or its municipal entities transact with each
other, unrealised gains and losses are eliminated to the extent of the Municipality’s interest in the
relevant municipal entity, except where unrealised losses provide evidence of an impairment of the
asset transferred.

Where the Municipality is no longer able to exercise control over the municipal entity, the equity
method of accounting is discontinued. Such entity will either be accounted for as an associate, if the
Municipality is able to exercise significant influence, or an investment. The carrying amounts of such
investments are reduced to recognise any decline, other than a temporary decline, in the value of
individual investments.

25 Cash and Cash Equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-
term highly liquid investments with original maturities with three months or less, and bank over-
drafts.

Bank overdrafts are shown within borrowings in current liabilities on the Statement of Financial
Position. Finance charges on bank overdrafts are expensed as incurred.

26 Foreign Currency Transactions

Transactions in foreign currencies are initially accounted for at the rate of exchange ruling on
the date of the transaction. Trade creditors denominated in foreign currency are reported at the
Statement of Financial Position date by using the exchange rate at that date. Exchange differ-
ences arising from the settlement of creditors or from reporting of creditors at rates different from
those at which they were initially recorded during the period are recognised as revenue or as
expenses in the period in which they arise.

Where the transaction is covered by a forward exchange contract, the rate specified in the con-
tract is used. The Municipality will not incur a foreign currency liability other than that allowed by
the Municipal Finance Management Act, 2003 (Act 56 of 2003).

27 Revenue Recognition

Revenue is derived from a variety of sources which include rates levied, grants from other tiers of
government and revenue from trading activities and other services provided.

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 CHAPTER FOUR: Accounting Policies

Revenue comprises the fair value of the consideration received or receivable for the supply of
services in the ordinary course of activities. Revenue is shown net of value-added tax, returns,
rebates and discounts.

Revenue is recognised when it is probable that future economic benefits or service potential will
flow to the Municipality and these benefits can be measured reliably.

The percentage-of-completion method is used to recognise revenue on long-term contracts.

Management exercises judgement in calculating the deferred revenue reserve which is based on
the anticipated cost of repairs over the life cycle of the equipment applied to the total expected
revenue arising from maintenance and repair contracts.

The City of Tshwane adopted the exemptions granted in Government Gazette 30013 of 29 June
2007 with regard to the initial measurement of fair value at a discounted rate.

27.1 Revenue from exchange transactions

27.1.1 Service charges relating to electricity, water and sanitation

Service charges relating to electricity, water and sanitation are based on consumption. Meters
are read and billed on a monthly basis and revenue is recognised when invoiced. Estimates of
consumption are made monthly when meter readings have not been performed.

The estimates of consumption are recognised as revenue when invoiced. Adjustments to esti-
mates of consumption are made in the invoicing period when meters have been read. These
adjustments are recognised as revenue in the invoicing period.

27.1.2 Services provided on a prepayment basis

Various services are provided on a prepayment basis, in which case no formal billing takes place
and income is accrued when received. Revenue is recognised at point of sale.

27.1.3 Interest earned on outstanding debtors

Interest on outstanding debtors is recognised on a time-proportionate basis.

27.1.4 Income from agency service

Income from agency services is recognised on a monthly basis once the income collected on be-
half of agents has been quantified. The income is recognised in terms of the agency agreement.

27.1.5 Housing rental and instalments

Income in respect of housing rental and instalments is accrued monthly in advance. Finance
income from the sale of housing by way of instalment sales agreements or finance leases is
recognised on a time-proportionate basis.

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 CHAPTER FOUR: Accounting Policies

27.1.6 Sale of goods

Revenue from the sale of goods is recognised when all the following conditions have been satis-
fied:

• The Municipality has transferred to the buyer the significant risks and rewards of ownership
of the goods.
• The Municipality retains neither continuing managerial involvement to the degree usually
associated with ownership nor effective control over the goods sold.
• The amount of revenue can be measured reliably.
• It is probable that the economic benefits or service potential associated with the transaction
will flow to the Municipality.
• The costs incurred or to be incurred in respect of the transaction can be measured reliably.

27.1.7 Interest earned on investments

Interest earned on investments is recognised on a time-proportionate basis that takes into ac-
count the effective yield on the investment.

27.1.8 Collection charges

Collection charges are recognised when such amounts are incurred.

27.2 Revenue from non-exchange transactions

27.2.1 Revenue from rates

Revenue from rates is recognised when the legal entitlement to this revenue arises. A site-rating
system is applied. In terms of this system, assessment rates are levied on the land value of prop-
erty and rebates are granted subject to certain conditions. A composite rating system charging
different rate tariffs is employed. Rebates are granted to certain categories of ratepayers.

27.2.2 Regional Establishment Levy and Regional Services Levy

Revenue from Regional Services Levies is recognised on an accrual basis. The accrual is calcu-
lated on past experience of amounts collected since the abolishment of Regional Services Levies
and Regional Establishment Levies on 1 July 2006.

27.2.3 Fines
Revenue from the issuing of fines shall be recognised when –
(a) it is probable that the economic benefits or service potential associated with
the transaction will flow to the Municipality;
(b) the amount of the revenue can be measured reliably; and
(c) the stage of completion of the transaction at the reporting date can be mea-
sured reliably.

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 CHAPTER FOUR: Accounting Policies

Therefore:
(i) Income in respect of traffic fines, spot fines and certain licences is accrued
when received, and
(ii) Revenue from the issuing of summonses is only recognised when notified by
the public prosecutor of the amount actually collected.

The accrual is calculated based on past experience of amounts collected on fines and sum-
monses issued.

27.2.4 Donations and contributions

Donations are recognised on a cash receipt basis or where the donation is in the form of proper-
ty, plant and equipment, when such items of property, plant and equipment are brought into use.

Contributed property, plant and equipment are recognised when such items of property, plant
and equipment are brought into use.

27.2.5 Revenue from recovery of unauthorised, irregular, fruitless and wasteful expendi-
ture
Revenue from the recovery of unauthorised, irregular, fruitless and wasteful expenditure is based
on legislated procedures, including those set out in the Municipal Finance Management Act,
2003 (Act 56 of 2003), and is recognised when the recovery thereof from the responsible coun-
cillors or officials is virtually certain.

28 Conditional Grants and Receipts

Revenue received from conditional grants, donations and funding is recognised as revenue to
the extent that the Municipality has complied with any of the criteria, conditions or obligations
embodied in the agreement. A liability is recognised when the criteria, conditions or obligations
have not been met. The City of Tshwane adopted the exemption granted in Government Gazette
30013 of 29 June 2007.

29 Borrowing Costs

Borrowing costs are recognised as an expense in the Statement of Financial Performance, except
for the Roodeplaat Temba Water Services Trust where the borrowing costs are capitalised.

30 Value-Added Tax

The Municipality accounts for value-added tax on the cash basis.

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 CHAPTER FOUR: Accounting Policies

31 Segmental Information

The City of Tshwane adopted the exemptions granted in Government Gazette 30013 of 29 June
2007.

Segmental information on property, plant and equipment, as well as income and expenditure, is
set out in Annexures C and D consistent with previous years.

The principal segments have been identified on a primary basis by service operation and on a
secondary basis by the classification of income and expenditure.

The primary basis is representative of the internal structure for both budgeting and management
purposes. The secondary basis classifies all operations based on the classification of income and
expenditure

32 Grants-In-Aid (EXPENSE)

The Municipality annually awards grants to individuals and organisations based on merit. When
making these transfers, the Municipality does not –

• receive any goods or services directly in return, as would be expected in a purchase or sale
transaction;
• expect to be repaid in future; or
• expect a financial return, as would be expected from an investment.

These transfers are recognised in the financial statements as expenses in the period that the
events giving rise to the transfer occurred.

33 Unauthorised Expenditure

Unauthorised expenditure is –

• expenditure that has not been budgeted;

• expenditure that is not in terms of the conditions of an allocation received from another
sphere of government, municipality or organ of state; and
• expenditure in the form of a grant that is not permitted in terms of the Municipal Finance
Management Act, 2003 (Act 56 of 2003).

Unauthorised expenditure is accounted for as an expense in the Statement of Financial Perfor-

mance and where recovered, it is subsequently accounted for as revenue in the Statement of
Financial Performance.

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 CHAPTER FOUR: Accounting Policies

34 Irregular Expenditure

Irregular expenditure is expenditure that is contrary to the Municipal Finance Management Act,
2003 (Act 56 of 2003), the Municipal Systems Act, 2000 (Act 32 of 2000), the Public Office
Bearers Act, 1993 (Act 20 of 1998) or in contravention of the Municipality’s Supply Chain Man-
agement Policy. Irregular expenditure excludes unauthorised expenditure.

Irregular expenditure is accounted for as an expense in the Statement of Financial Performance

and where recovered, it is subsequently accounted for as revenue in the Statement of Financial
Performance.

35 Fruitless and Wasteful Expenditure

Fruitless and wasteful expenditure is expenditure that was made in vain and would have been
avoided had reasonable care been exercised.

Fruitless and wasteful expenditure is accounted for as an expense in the Statement of Financial
Performance and where recovered, it is subsequently accounted for as revenue in the Statement
of Financial Performance.

36 Comparitive Information

36.1 Current year comparatives

Budgeted amounts have been included in the annual financial statements for the current financial
year only.

36.2 Previous year comparatives

When the presentation or classification of items in the annual financial statements is amended,
previous period comparative amounts are reclassified. The nature and reason for the reclassifica-
tion is disclosed.

The comparative figures (2006/07 accounting policy and disclosures) may not be consistent with
the current year accounting policies and disclosures due to the application of the exemptions in
terms of Government Gazette 30013 of 29 June 2007.

37 Taxation

The City of Tshwane Metropolitan Municipality is exempt from tax in terms of section 10(1)cB(i)
(ff) of the Income Tax Act.

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 CHAPTER FOUR: Accounting Policies

38 Estimates

The preparation of financial statements in conformity with GRAP requires the use of certain
critical accounting estimates. It also requires management to exercise its judgement in applying
the City of Tshwane’s accounting policies. The areas involving a higher degree of judgement or
complexity, or areas where assumptions and estimates are significant for the financial statements
are disclosed in the notes to the financial statements were applicable.

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 CHAPTER FOUR: Financial Statements

>> 4.4 FINANCIAL STATEMENTS

Consolidated Statement of Financial Position as at 30 JUNE 2008

MUNICIPALITY

Note 2008 2007 2008 2007

R R R R

NET ASSETS AND LIABILITIES

Net assets 7,904,591,040 7,047,147,850 7,933,662,866 7,116,059,562

Housing Development Fund 1 128,919,887 141,152,353 128,919,887 141,152,353

Capital Replacement Reserve 307,157,479 501,152,806 307,157,479 501,152,806

Capitalisation Reserve 2,114,595,750 2,008,028,104 2,114,595,750 2,008,028,104

Government Grant Reserve 3,795,803,234 3,506,835,333 3,795,803,234 3,509,888,886

Self-insurance Reserve 14,552,843 65,637,380 14,552,843 65,637,380

COID Reserve 68,873,273 62,694,963 68,873,273 62,694,963

Future Depreciation Reserve: Self-insurance 288,643 332,487 288,643 332,487

Non-Distributable Reserve 0 0 0 0

Donations 0 0 1,200 1,200

Unappropriated surplus 1,474,399,931 761,314,424 1,503,470,557 827,171,383

Non-current liabilities 2,900,147,756 2,714,992,509 3,432,361,668 3,250,458,238

Long-term liabilities 2 2,705,771,524 2,602,026,465 3,211,659,565 3,137,492,194

Finance lease liabilities 3.1 107,164,783 107,702,894 131,412,532 107,702,894

Deferred operating lease liability 3.2 0 0 2,078,122 0

Non-current provisions 4.4 87,211,449 5,263,150 87,211,449 5,263,150

Current liabilities 2,880,839,354 2,722,840,506 3,005,392,920 2,890,829,869

Consumer deposits 6 267,978,963 257,579,090 269,510,010 257,579,090

Creditors 7 1,740,375,706 1,820,360,314 1,831,764,930 1,966,023,163

Unspent conditional grants and receipts 8 334,892,132 210,990,931 339,175,084 210,990,931

VAT 9 104,380,809 58,214,444 113,720,301 61,270,221

Bank overdraft 18 106,407,370 46,002,138 106,678,519 46,002,138

Provisions 5 0 0 782,275 2,318,467

Current portion of long-term liabilities 2 172,572,966 232,569,002 189,530,393 249,521,272

Current portion of finance lease liabilities 3.1 154,231,408 97,124,587 154,231,408 97,124,587

Total: Net assets and liabilities 13,685,578,150 12,484,980,865 14,371,417,454 13,257,347,669

ASSETS

Non-current assets 10,457,274,114 9,184,116,909 10,884,010,197 9,640,227,058

Fixed assets 9,575,902,472 8,242,557,019 9,982,017,021 8,675,496,151

Property, plant and equipment 10.9 9,467,414,348 8,135,246,469 9,863,525,657 8,560,694,944

Investment property 10.10 10,453,152 11,950,766 20,453,152 19,441,423

Intangible assets 10.11 98,034,972 95,359,784 98,038,212 95,359,784

Leased assets 10.13 251,314,511 197,234,792 265,078,327 212,108,488

Biological assets: Livestock 11 14,741,255 11,014,558 14,741,255 11,014,558

Investments 12.1 425,553,069 411,283,908 432,410,787 418,075,178

Long-term receivables 13 189,762,807 322,026,632 189,762,807 323,532,683

Current assets 3,228,304,036 3,300,863,956 3,487,407,257 3,617,120,611

Inventory 14 216,602,417 165,944,194 232,918,710 209,737,781

Consumer debtors 15 2,393,172,131 2,044,386,698 2,401,319,812 2,047,011,821

Other debtors 16 236,781,016 434,668,931 262,795,274 456,486,840

Current portion of long-term receivables 13 103,377,148 27,840,367 103,377,148 27,840,367

Call investment deposits 12.2 235,135,631 558,674,497 272,462,172 614,937,475

Bank balances and cash 18 43,235,693 69,349,269 214,534,141 261,106,327

Total: Assets 13,685,578,150 12,484,980,865 14,371,417,454 13,257,347,669

City of Tshwane Annual Report 2008/2009 // pg 125

Annual Report v2.indd 125 2009/06/04 09:18:20 AM

 Consolidated Statement of Financial Performance

Annual Report v2.indd 126

pg 126
MUNICIPALITY

//
2008 2007 2008 2007
Note Actual Adjustment Actual Adjustment Actual Adjustment Actual Adjustment
budget budget budget Budget
R R R R R R R R
REVENUE
Property rates 19 2,181,017,691 2,007,541,000 1,719,224,465 1,735,113,478 2,180,952,393 2,007,541,000 1,719,158,593 1,735,113,478

Service charges 20 4,838,958,770 4,769,479,797 4,211,357,728 4,246,657,264 4,925,025,127 4,769,479,797 4,282,086,701 4,246,657,264

Regional Services Levies – turnover 0 20,000,000 0 16,000,000 0 20,000,000 (38,135) 16,000,000

Regional Services Levies – remuneration 0 0 0 0 0 0 0 0

Rental of facilities and equipment 84,317,308 74,495,934 70,027,787 56,193,546 90,860,818 74,495,934 84,451,009 56,193,546

City of Tshwane Annual Report 2008/2009

Interest earned – external investments 135,554,608 113,303,229 134,186,955 47,942,050 158,014,824 113,303,229 154,277,171 47,942,050
CHAPTER FOUR: Financial Statements

Interest earned – outstanding debtors 179,065,234 160,432,604 142,516,022 137,007,800 194,352,139 160,432,604 155,842,736 137,007,800

Fines (traffic fines) 38,302,819 49,433,869 38,389,834 42,742,689 38,302,819 49,433,869 38,389,834 42,742,689

Licences and permits 29,498,520 23,049,903 21,816,684 34,297,845 29,498,520 23,049,903 21,816,684 34,297,845

Government grants and subsidies 21 1,917,227,861 2,201,857,795 1,566,093,641 1,749,343,822 1,919,501,081 2,201,857,795 1,541,794,233 1,749,343,822

Other income 22 542,818,099 619,483,107 510,831,552 457,747,540 691,502,194 619,483,107 605,903,099 457,747,540

Public contributions 165,369,329 155,000,000 165,566,509 50,012,825 165,369,329 155,000,000 165,566,509 50,012,825

Gains on disposal of property, plant and equipment 4,936,900 40,352,144 20,915,400 14,500,000 4,936,900 40,352,144 20,915,400 14,500,000

Gain: Changes in fair value of livestock 11 3,726,697 0 555,578 0 3,726,697 0 555,578 0

TOTAL: REVENUE 10,120,793,836 10,234,429,382 8,601,482,155 8,587,558,859 10,402,042,841 10,234,429,382 8,790,719,412 8,587,558,859

2009/06/04 09:18:24 AM
Annual Report v2.indd 127
MUNICIPALITY

2008 2007 2008 2007

Note Actual Adjustment Actual Adjustment Actual Adjustment Actual Adjustment
budget budget budget Budget
R R R R R R R R
EXPENDITURE
Employee-related costs 23 2,621,002,843 2,729,726,831 2,412,004,372 2,551,422,155 2,665,393,656 2,729,726,831 2,445,747,160 2,551,422,155
Remuneration of councillors 24 44,201,359 47,914,093 45,946,048 46,762,692 44,201,359 47,914,093 45,946,048 46,762,692
Bad debts: Contribution 179,914,390 19,920,755 106,752,294 106,649,267 230,254,392 19,920,755 114,705,781 106,649,267
Bad debts: Written off - consumer and sundry debtors 100,732,978 109,100,000 86,736,741 0 100,732,978 109,100,000 86,736,741 0
Collection costs 72,224,153 63,178,651 49,538,121 50,669,138 72,224,153 63,178,651 49,538,121 50,669,138
Depreciation 542,316,164 728,387,673 628,929,878 592,729,286 581,372,889 728,387,673 668,719,807 592,729,286
Interest paid 25 362,149,670 382,138,723 351,218,853 345,899,657 431,881,950 382,138,723 424,856,905 345,899,657
Bulk purchases 26 2,206,818,210 2,232,955,941 2,130,979,261 1,989,821,178 2,214,193,693 2,232,955,941 2,136,832,836 1,989,821,178
Repairs and maintenance 43 894,628,918 749,310,022 727,352,320 674,906,579 897,807,296 749,310,022 731,219,500 674,906,579
Grants and subsidies paid 27 11,584,679 12,285,250 8,392,257 11,634,800 11,584,679 12,285,250 8,392,257 11,634,800
Loss on disposal of property, plant and equipment 23,423,391 9,900 9,915,217 5,525,863 23,423,391 9,900 9,917,937 5,525,863
General expenses 28 2,204,353,890 2,263,439,651 1,730,792,294 2,010,014,816 2,315,145,666 2,010,014,816 1,824,966,065 1,829,805,777

City of Tshwane Annual Report 2008/2009 //

TOTAL: EXPENDITURE 9,263,350,645 9,338,367,490 8,288,557,656 8,386,035,431 9,588,216,102 9,084,942,655 8,547,579,158 8,205,826,392
CHAPTER FOUR: Financial Statements

Net surplus for the year 857,443,191 896,061,892 312,924,499 201,523,428 813,826,739 1,149,486,727 243,140,254 381,732,467

pg 127
Refer to Annexure E for the comparison with the approved budget.

2009/06/04 09:18:28 AM
 Statement of Changes in Net Assets for the year ended June 2008: Municipality

Annual Report v2.indd 128

Housing Capital Capitalisation Government COID Self-insurance Self-insurance: Accumulated Total

pg 128
Development Replacement Reserve Grant Reserve Reserve Reserve FDR surplus/(deficit)

//
Fund Reserve
R R R R R R R R R
2007
Balance at 1 July 2006 150,463,875 357,857,950 2,177,575,289 3,348,292,166 70,050,967 128,555,010 376,331 524,027,798 6,757,199,386
Net surplus for the year 316,319,629 316,319,629
Previous year adjustments (see note 42) (26,371,166)
Asset purification/retirements (6,162,391) (20,056,037) 26,218,428 0
Property, plant and equipment pur- (94,508,184) 94,508,184 0
chased: Capitalised
Capital grants used to purchase PPE 317,833,940 (317,833,940) 0
(revenue recognised)
Contribution: Workmen’s compensation (7,356,004) 7,356,004 0
(from employees)
Transfer from Housing Development (9,311,522) 9,311,522 0

City of Tshwane Annual Report 2008/2009

Fund
CHAPTER FOUR: Financial Statements

Transfer from Insurance Reserve 0 (62,917,630) 62,917,630 0

Transfer to Capital Replacement Reserve 28,367,158 (28,367,158) 0
(Tshwane Market)
Transfer to Capital Replacement Reserve: 209,435,882 (209,435,882) 0
General
Offsetting of depreciation (257,892,978) (139,234,736) 0 (43,844) 397,171,558 0
Balance at 30 June 2007 141,152,353 501,152,806 2,008,028,104 3,506,835,333 62,694,963 65,637,380 332,487 761,314,423 7,047,147,849

2009/06/04 09:18:32 AM
Annual Report v2.indd 129
Housing Capital Capitalisation Government COID Self-insurance Self-insurance: Accumulated Total
Development Replacement Reserve Grant Reserve Reserve Reserve FDR surplus/(deficit)
Fund Reserve
R R R R R R R R R
2008
Net surplus for the year 857,443,191 857,443,191

Asset purification/retirements (18,593,963) (85,335,055) 0 103,929,018 0

Property, plant and equipment purchased: Capi- (378,715,875) 378,715,875 0

talised
Capital grants used to purchase PPE (revenue 467,680,281 (467,680,281) 0
recognised)
Contribution: Workmen’s compensation (from 6,178,310 (6,178,310) 0
employees)
Transfer from Housing Development Fund (12,232,466) 12,232,466 0

Transfer from Insurance Reserve (51,084,537) 51,084,537 0

Transfer to Capital Replacement Reserve (Tshwane 16,219,136 (16,219,136) 0

City of Tshwane Annual Report 2008/2009 //

Market)
Transfer to Capital Replacement Reserve (public 168,501,412 (168,501,412) 0
CHAPTER FOUR: Financial Statements

contributions)
Offsetting of depreciation (253,554,266) (93,377,325) 0 (43,844) 346,975,435 0

pg 129
Balance at 30 June 2008 128,919,887 307,157,479 2,114,595,750 3,795,803,234 68,873,273 14,552,843 288,643 1,474,399,931 7,904,591,040

2009/06/04 09:18:36 AM
 CHAPTER FOUR: Financial Statements

The accumulated surplus of R1 474 399 931 is earmarked to be used in 2008/09 for the
provision for employee benefits to comply with the accounting standard as prescribed.

Note: Capitalisation Reserve
The handling of the Capitalisation Reserve differs from the guidelines of National Treasury as
indicated in the specimen financial statements in the sense that:

• The amount used to finance property, plant and equipment from the Capital Replacement
Reserve since the implementation of GAMAP is not transferred to the accumulated surplus
but to the Capitalisation Reserve.
• The reasons for this deviation are the following:
• To offset future depreciation charges via a transfer from the reserve to prevent double taxa-
tion of ratepayers.
• To prevent distortion of the accumulated surplus which could possibly lead to utilisation other
than the offsetting of depreciation.
• An accumulated surplus is not used to finance deficits on future budgets as a result of depre-
ciation charges.
• The financing and offsetting of depreciation of property, plant and equipment financed from
the Capital Replacement Reserve should be treated the same as property, plant and equip-
ment financed from the Government Grant Reserve

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

• Accumulated surplus would increase with R380 171 127 (2006/07 = R 94 508 184 and
2005/06 = R302 183 695 and 2004/05 = R 909 806 168).
• The Capitalisation Reserve would decrease with R380 171 127 (2006/07 = R94 508 184
and 2005/06 = R302 183 695 and 2004/05 = R909 806 168).

pg 130 // City of Tshwane Annual Report 2008/2009

Annual Report v2.indd 130 2009/06/04 09:18:39 AM

Annual Report v2.indd 131
Statement of changes in Net Assets: Group

Housing Capital Capitalisation Government COID Self- in- Self- in- Roodeplaat Roodeplaat Housing Accumu- Total
Development Replacement Reserve Grant Reserve Reserve surance surance: Temba Water Temba Company lated surplus/
Fund Reserve Reserve Future Services Water Ser- Tshwane: (deficit)
Deprecia- Trust: Debt vices Trust: Grant
tion Service Statutory Reserve
Reserve Reserve Donations
Fund

R R R R R R R R R R R R
2007
Balance at 1 July 2006 150,463,875 357,857,950 2,177,575,289 3,348,292,166 70,050,967 128,555,010 376,331 13,219,924 1,200 2,952,495 645,623,926 6,894,969,133

Net surplus for the year 246,535,385 246,535,385

Previous year adjustments: Parent (26,371,166) (26,371,166)

(see note 42)

Correction of previous year accumu- 926,210 926,210

lated surplus: Entities

Correction of errors of previous (13,219,924) 101,058 13,118,866 0

years (audit adjustments – entities)

Asset purification/retirements (6,162,391) (20,056,037) 26,218,428 0

Property, plant and equipment (94,508,184) 94,508,184 0

capitalised
Capital grants used to purchase PPE 317,833,940 (317,833,940) 0

(revenue recognised)
Contribution: Workmen’s compensa- (7,356,004) 7,356,004 0

tion (from employees)

Transfer from Housing Development (9,311,522) 9,311,522 0

Fund
Transfer from Insurance Reserve (62,917,630) 62,917,630 0

Transfer to Capital Replacement 28,367,158 (28,367,158) 0

City of Tshwane Annual Report 2008/2009 //

Reserve (Tshwane Market)
Transfer to Capital Replacement 209,435,882 (209,435,882) 0
CHAPTER FOUR: Financial Statements

Reserve: General
(257,892,978) (139,234,736) (43,844) 397,171,558 0

pg 131
Offsetting of depreciation
Balance at 30 June 2007 141,152,353 501,152,806 2,008,028,104 3,506,835,333 62,694,963 65,637,380 332,487 0 1,200 3,053,553 827,171,383 7,116,059,562

2009/06/04 09:18:43 AM
 Housing Capital Capitalisa-tion Government COID Self- in- Self Insur- Roodeplaat Roodeplaat Housing Accumu- Total
Develop- Replace- Reserve Grant Reserve Reserve surance ance: Future Temba Water Temba Water Company lated surplus/

Annual Report v2.indd 132

ment Fund ment Reserve Reserve Deprecia-tion Services Services Tshwane: (deficit)

pg 132
Reserve Trust: Debt Trust: Statu- Grant

//
Service tory Dona- Reserve
Reserve tions Fund

Net surplus for the year 813,826,739 813,826,739

Correction of previous year 70,076 70,076

accumulated surplus: Sandspruit

(see note 42)
Correction of previous year (3,053,553) 14,679,980 11,626,427

accumulated surplus: Housing

Company (see note 42)
Correction of previous year ac- (7,809,766) (7,809,766)

cumulated surplus: Roodeplaat

Temba (see note 42)

City of Tshwane Annual Report 2008/2009

Correction of previous year ac- (110,172) (110,172)
CHAPTER FOUR: Financial Statements

cumulated deficit: Civirelo (see

note 42)
Asset purification/retirements (18,593,963) (85,335,055) 103,929,018 0

Property, plant and equipment (378,715,875) 378,715,875 0 0

capitalised
Capital grants used to purchase 467,680,281 (467,680,281) 0

PPE (revenue recognised)

Contribution: Workmen’s com- 6,178,310 (6,178,310) 0

pensation (from employees)

Transfer from Housing Develop- (12,232,466) 12,232,466 0

ment Fund
Transfer from Insurance Reserve (51,084,537) 51,084,537 0

Transfer to Capital Replacement 16,219,136 (16,219,136) 0

Reserve (Tshwane Market)

Transfer to Capital Replacement 168,501,412 (168,501,412) 0

Reserve: General
Offsetting of depreciation (253,554,266) (93,377,325) (43,844) 346,975,435 0

Balance at 30 June 2008 128,919,887 307,157,479 2,114,595,750 3,795,803,234 68,873,273 14,552,843 288,643 0 1,200 0 1,503,470,557 7,933,662,866

2009/06/04 09:18:47 AM
 CHAPTER FOUR: Financial Statements

Cash Flow Statement

MUNICIPALITY GROUP
Note 2008 2007 2008 2007
R R R R

Cash Flow from Operating Activities

Cash receipts from ratepayers, government and other 9,821,550,379 8,224,845,277 10,113,562,700 8,665,483,570

Cash paid to suppliers and employees (8,227,664,950) (7,094,097,142) (8,501,788,219) (7,480,835,124)

Cash generated from/(used by) operations 29 1,593,885,429 1,130,748,135 1,611,774,481 1,184,648,446

Interest received 135,554,608 134,186,955 158,014,824 154,277,171

Interest paid (362,149,670) (351,218,853) (431,881,950) (424,856,905)

Net Cash from Operating Activities 1,367,290,367 913,716,237 1,337,907,355 914,068,712

Cash flows from Investing Activities

Purchase of property, plant and equipment (1,929,741,341) (1,609,972,661) (1,939,748,515) (1,623,895,875)

Gain: Change in fair value of livestock (3,726,697) (555,578) (3,726,697) (555,578)

Proceeds on disposal of fixed assets 4,936,900 20,915,400 4,936,900 20,915,400

Proceeds on disposal of investments - - - -

Decrease/(increase) in non-current loans 54,734,651 (40,773,238) 56,240,702 (42,279,289)

Decrease/(increase) in non-current investments (14,269,160) 71,258,929 (14,335,608) 117,917,651

Net Cash from Investing Activities (1,888,065,647) (1,559,127,148) (1,896,633,218) (1,527,897,691)

Cash flows from Financing Activities

New loans raised/(repaid) 43,749,023 636,452,546 14,176,492 631,346,357

Lease liabilities 56,568,710 204,827,481 82,894,581 204,827,481

Increase in consumer deposits 10,399,873 21,486,701 11,930,920 21,486,701

Net Cash from Financing Activities 110,717,606 862,766,728 109,001,993 857,660,539

Net Cash Flow (410,057,674) 217,355,817 (449,723,870) 243,831,560

Net Increase/(Decrease) in Cash and Cash Equivalents (410,057,674) 217,355,817 (449,723,870) 243,831,560

Cash and cash equivalents at the beginning of the year 30 582,021,628 364,665,811 830,041,664 586,210,104

Cash and cash equivalents at the end of the year 30 171,963,954 582,021,628 380,317,794 830,041,664

City of Tshwane Annual Report 2008/2009 // pg 133

Annual Report v2.indd 133 2009/06/04 09:18:51 AM

 CHAPTER FOUR: Financial Statements

Notes to the Consolidated Annual Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R

1 Housing Development Fund

Housing Development Fund 128,919,887 141,152,353 128,919,887 141,152,353

Unappropriated surplus 197,926,350 210,158,816 197,926,350 210,158,816
Loans extinguished by government on 69,006,463 69,006,463 69,006,463 69,006,463
1 April 1998

The Housing Development Fund is represented by

the following assets and liabilities:
Housing selling scheme loans 108,239,423 103,434,420 108,239,423 103,434,420
Other debtors 12,687,578 9,961,181 12,687,578 9,961,181
Bank and cash 7,992,886 27,756,752 7,992,886 27,756,752

Total: Housing Development Fund assets and 128,919,887 141,152,353 128,919,887 141,152,353
liabilities

2 Long-Term Liabilities

Local registered stock 318,161,284 315,714,882 318,161,284 315,714,882

Long-term loans: 2,560,183,206 2,518,880,585 3,083,028,674 3,071,298,584
Annuity loans 2,073,261,434 1,906,549,057 2,073,261,434 1,906,549,057
Term loans 486,921,772 612,331,528 1,009,767,240 1,136,935,795
Capitalised lease liability 0 0 27,813,732
2,878,344,490 2,834,595,467 3,401,189,958 3,387,013,466
Less: Current portion transferred to current li-
172,572,966 232,569,002 189,530,393 249,521,272
abilities
Local registered stock 42,227,760 0 42,227,760 0
Annuity loans 101,842,510 77,569,002 101,842,510 77,569,002
Term loans 28,502,696 155,000,000 45,460,123 171,952,270

Total: External loans 2,705,771,524 2,602,026,465 3,211,659,565 3,137,492,194

Refer to Annexure A for more detail on long-term

liabilities.

Amount invested specifically for the repayment of 568,644,654 634,478,486 568,644,654 634,478,486
long-term liabilities (see note 31 for more detail)

Maturity value of amount invested as security 815,559,792 1,201,630,598 815,559,792 1,201,630,598

for long-term liabilities

3 Lease Liabilities

3.1 Finance lease liabilities

Gross liability 191,297,442 163,509,221 215,545,191 163,509,221
Future finance charges on finance leases 70,098,750 41,318,260 70,098,750 41,318,260
Total: Finance lease liability 261,396,192 204,827,481 285,643,941 204,827,481

pg 134 // City of Tshwane Annual Report 2008/2009

Annual Report v2.indd 134 2009/06/04 09:18:55 AM

 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R
Non-current portion of finance lease liability
Gross liability 88,717,416 89,372,207 112,965,165 89,372,207
Future finance charges on finance leases 18,447,368 18,330,687 18,447,368 18,330,687
107,164,784 107,702,894 131,412,533 107,702,894

Current portion of finance lease liability

Gross liability 102,580,026 74,137,014 102,580,026 74,137,014
Future finance charges on finance leases 51,651,382 22,987,573 51,651,382 22,987,573
154,231,408 97,124,587 154,231,408 97,124,587

Finance lease liabilities – minimum future lease payments:

No later than one year 102,580,026 74,137,014 102,580,026 76,177,822

Later than one year, no later than five years 88,717,416 89,372,207 89,679,098 91,513,618
Later than five years 0 0 23,286,067 23,631,513
191,297,442 163,509,221 215,545,191 191,322,953
Future finance charges on finance leases 70,098,750 41,318,260 70,098,750 41,318,260
Present value of finance lease liabilities 261,396,192 204,827,481 285,643,941 232,641,213
Refer to Annexure A for more detail on finance lease
liabilities.

The present value of finance lease liabilities may be analysed as follows:

No later than one year 154,231,408 97,124,587 154,231,408 97,124,587

Later than one year, no later than five years 107,164,784 107,702,894 107,164,784 107,702,894
261,396,192 204,827,481 261,396,192 204,827,481

Fair value of loans (amortised cost ie PV) 261,396,192 204,827,481 261,396,192 204,827,481

Collateral held in terms of the above lease

251,314,511 197,234,792 251,314,511 197,234,792
(net book amount of leased assets) (see note
1013)

Lease liabilities are effectively secured as the rights to the leased asset revert to the lessor in the event of default.

Term loans are secured by:

(1) a general notarial bond over the movable assets of the trust; (2) cession of the Temba Lease Agreement; and (3) Debt Service
Reserve Account, Capital Reserve Account and Operating Reserve Account. These loans are repayable six-monthly over 15 years.

Housing Company Tshwane

A secured loan bearing interest at 14% per year from National Housing Finance Corporation Ltd, repayable in the remaining 188
monthly instalments (initially 240 monthly instalments). Secured by a mortgage bond over the investment property with a fair value
of R10 000 000 (subject to pending valuation results) plus a cession of all banking accounts, debtors books and all risk insurance
policies.

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

City of Tshwane Annual Report 2008/2009 // pg 135

Annual Report v2.indd 135 2009/06/04 09:18:59 AM

 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R
3.2 Deferred lease liabilities
Balance at the beginning of the year (only
1,873,039 0
brought in in 2007/08)
Expense realised 205,083 0
Balance at the end of the year 2,078,122 0

4 Non-Current Provisions

4.1 Clearing of Alien Vegetation

Opening balance at the beginning of the year 5,263,150 2,869,225 5,263,150 2,869,225

Contributions during the year 3,716,659 6,292,554 3,716,659 6,292,554

Expenditure during the year (3,190,344) (3,898,629) (3,190,344) (3,898,629)
Closing balance at the end of the year 5,789,465 5,263,150 5,789,465 5,263,150

In terms of the Conservation of Agricultural Resources Act, 1983 (Act 43 of 1983), the provision for the clearing of alien vegatation
was established in 2005/06 as a start to address the backlogs that exist. The provision will be phased in over a period of time.

4.2 Rehabilitation of Landfill Sites

The provision for landfill sites has been established in the 2007/08 financial year only.

Opening balance at the beginning of the year 0 0 0 0

Contributions during the year 63,360,000 0 63,360,000 0
Expenditure during the year 0 0 0 0
Closing balance at the end of the year 63,360,000 0 63,360,000 0

4.3 Rehabilitation of Quarries

The provision for quarries has been established in the 2007/08 financial year only.

Opening balance at the beginning of the year 0 0 0 0

Contributions during the year 18,061,984 0 18,061,984 0
Expenditure during the year 0 0 0 0
Closing balance at the end of the year 18,061,984 0 18,061,984 0

4.4 Total: Non-current provisions

Opening balance at the beginning of the year 5,263,150 2,869,225 5,263,150 2,869,225
Contributions during the year 85,138,643 6,292,554 85,138,643 6,292,554
Expenditure during the year (3,190,344) (3,898,629) (3,190,344) (3,898,629)
Closing balance at the end of the year 87,211,449 5,263,150 87,211,449 5,263,150

5 Current Provisions

Performance bonus 782,275 2,318,467

Special projects 0 0

782,275 2,318,467

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R

5.1 Reconciliation of Current Provisions

5.1.1 Performance bonus

Balance at the beginning of the year 2,318,467 1,964,363

Contributions to provision 782,275 354,104

Use of provision (2,318,467) 0

Balance at the end of the year 782,275 2,318,467

5.1.2 Special projects

Balance at the beginning of the year 0 2,495,167
Contributions to provision 0 0
Use of provision 0 (2,495,167)
Balance at the end of the year 0 0

6 Consumer Deposits

Electricity and water 267,978,963 257,579,090 269,510,010 257,579,090

Guarantees held in lieu of electricity and 128,909,639 115,829,785 128,909,639 115,829,785

water deposits

7 Creditors

Trade creditors 967,517,682 1,074,289,037 983,370,640 1,090,826,440

Payments received in advance 3,873,614 6,147,161 58,127,847 100,858,338
Retentions 96,661,285 80,391,743 103,699,574 90,378,713
Staff leave accrual 257,311,987 226,880,894 259,776,832 226,885,121
Deposits 17,931,509 14,845,980 20,024,840 16,667,509
Other creditors 397,079,629 417,805,499 406,765,197 440,407,042

1,740,375,706 1,820,360,314 1,831,764,930 1,966,023,163

Total: Creditors

8 Unspent Conditional Grants and Receipts

8.1 Conditional grants from other spheres of 324,296,799 198,708,969 324,296,799 198,708,969
government
Municipal Infrastructure Grant (MIG) 35,892,625 19,794,905 35,892,625 19,794,905
Housing projects 19,132,755 25,714,685 19,132,755 25,714,685
Department of Water Affairs and Forestry (DWAF) 0 22,391,328 0 22,391,328
Finance Management Grant (FMG) 1,304,688 1,503,403 1,304,688 1,503,403
Municipal System Improvement Grant (MSIG) 498,400 3,000,000 498,400 3,000,000
Restructuring Grant 86,786,106 78,921,695 86,786,106 78,921,695
Department of Provincial and Local Government 49,431,225 0 49,431,225 0
HIV/Aids Operational Grant
Transportation and Engineering 8,000,000 8,000,000 8,000,000 8,000,000
Department of Public Works 7,322,068 7,322,068 7,322,068 7,322,068
Transport: World Cup Soccer 115,785,094 24,150,000 115,785,094 24,150,000
Eskom 12,953 5,780,000 12,953 5,780,000
Provincial Local Economic Development Projects 130,885 2,130,885 130,885 2,130,885
Grant

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R
8.2 Other conditional receipts 10,595,333 12,281,962 14,878,285 12,281,962
National Electrification Fund 4,198,110 4,025,783 4,198,110 4,025,783
Bontle ke Botho 1,457,223 177,223 1,457,223 177,223
Gauteng: Agriculture, Conservation and Environment 440,000 8,078,956 440,000 8,078,956
DPLG: Health 1,500,000 0 1,500,000 0
Monument Golf Club 3,000,000 0 3,000,000 0
Other: Sandspruit 0 0 4,282,952 0
Total: Conditional grants and receipts 334,892,132 210,990,931 339,175,084 210,990,931

See note 20 for reconciliation of grants from other spheres of government.

These amounts are invested until used.

9 VAT
VAT payable 104,380,809 58,214,444 113,720,301 61,270,221

VAT is payable on the receipts basis. Only once payment is received from debtors is VAT paid over to SARS.

10 Property, Plant and Equipment

Reconciliation of carrying values

10.1 Infrastructure
Carrying value at 1 July 5,335,829,652 4,572,768,786 5,344,147,652 4,578,920,873
Cost 7,336,282,784 6,450,648,987 7,346,503,035 6,457,836,217
Accumulated depreciation – cost (2,000,453,132) (1,877,880,201) (2,002,355,383) (1,878,915,344)

Acquisitions 2,299,852,932 158,454,785 2,300,296,509 160,620,367

Additions 1,876,235,172 217,828,990 1,877,650,290 220,862,011
Capital under construction 639,207,766 250,981,817 639,207,766 250,981,817
Transfer: Threshold assets – cost (107,017) 107,017
Transfer: Threshold assets – depreciation 106,686 (106,686)
Depreciation – based on cost (215,589,675) (310,356,353) (216,561,547) (311,223,461)

Carrying value of purification/transfers (964,766,260) 604,606,081 (964,766,260) 604,606,081

Cost (966,379,735) 416,715,973 (966,379,735) 416,715,973
Accumulated depreciation – cost 1,613,475 187,890,108 1,613,475 187,890,108

Carrying values at 30 June: 6,670,916,324 5,335,829,652 6,679,677,570 5,344,147,652

Cost 8,885,238,970 7,336,282,784 8,896,874,339 7,346,503,035
Accumulated depreciation – cost (2,214,322,646) (2,000,453,132) (2,217,196,769) (2,002,355,383)

10.2 Community
Carrying value at 1 July 768,321,582 212,730,759 768,321,582 212,730,759
Cost 1,024,618,757 389,646,613 1,024,618,757 389,646,613
Accumulated depreciation – cost (256,297,175) (176,915,854) (256,297,175) (176,915,854)

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R
Acquisitions 112,882,539 (36,106,350) 113,072,682 (36,296,493)
Additions 146,170,690 6,900,014 146,170,690 6,900,014
Capital under construction 8,353,798 (22,463,288) 8,353,798 (22,463,288)
Transfer: Threshold assets – cost (200,589) 200,589
Transfer: Threshold assets – depreciation 10,446 (10,446)
Depreciation – based on cost (41,451,806) (20,733,219) (41,451,806) (20,733,219)

Carrying value of purification/transfers (29,901,839) 591,697,173 (29,901,839) 591,697,173

Cost (29,901,839) 650,334,829 (29,901,839) 650,334,829
Accumulated depreciation – cost 0 (58,637,656) 0 (58,637,656)

Carrying value at 30 June: 851,302,282 768,131,439 851,302,282 768,131,439

Cost 1,149,040,817 1,024,418,168 1,149,040,817 1,024,418,168
Accumulated depreciation – cost (297,738,535) (256,286,729) (297,738,535) (256,286,729)

10.3 Heritage
Carrying value at 1 July 3,733,422 3,221,102 3,733,422 3,221,102
Cost 3,813,988 3,221,102 3,813,988 3,221,102
Accumulated depreciation – cost (80,566) 0 (80,566) 0

Acquisitions (38,675) 0 (38,675) 0

Additions 0 0 0 0
Capital under construction 0 0 0 0
Depreciation – based on cost (38,675) 0 (38,675) 0

Carrying value of purification/transfers 0 512,320 0 512,320

Cost 0 592,886 0 592,886
Accumulated depreciation – cost 0 (80,566) 0 (80,566)

Carrying value at 30 June: 3,694,747 3,733,422 3,694,747 3,733,422

Cost 3,813,988 3,813,988 3,813,988 3,813,988
Accumulated depreciation – cost (119,241) (80,566) (119,241) (80,566)

10.4 Housing
Carrying value at 1 July 201,630,395 220,074,355 201,630,395 220,074,355
Cost 234,965,906 227,228,983 234,965,906 227,228,983
Accumulated depreciation – cost (33,335,511) (7,154,628) (33,335,511) (7,154,628)

Acquisitions 84,530,648 (61,060,788) 84,530,648 (61,060,788)

Additions 81,746,559 0 81,746,559 0
Capital under construction 6,035,290 (59,745,969) 6,035,290 (59,745,969)
Depreciation – based on cost (3,251,201) (1,314,819) (3,251,201) (1,314,819)

Carrying value of purification/transfers (132,579,480) 42,616,828 (132,579,480) 42,616,828

Cost (132,579,480) 67,482,892 (132,579,480) 67,482,892
Accumulated depreciation – cost 0 (24,866,064) 0 (24,866,064)

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R
Carrying value at 30 June: 153,581,563 201,630,395 153,581,563 201,630,395
Cost 190,168,275 234,965,906 190,168,275 234,965,906
Accumulated depreciation –cost (36,586,712) (33,335,511) (36,586,712) (33,335,511)

10.5 Stock
Carrying value at 1 July 1,019,408 0 1,019,408 0
Cost 1,142,732 0 1,142,732 0
Accumulated depreciation – cost (123,324) 0 (123,324) 0

Acquisitions 0 0 0 0
Additions 0 0 0 0
Capital under construction 0 0 0 0
Depreciation – based on cost 0 0 0 0

Carrying value of purification/transfers 0 1,019,408 0 1,019,408

Cost 0 1,142,732 0 1,142,732
Accumulated depreciation – cost 0 (123,324) 0 (123,324)

Carrying value at 30 June: 1,019,408 1,019,408 1,019,408 1,019,408

Cost 1,142,732 1,142,732 1,142,732 1,142,732
Accumulated depreciation –cost (123,324) (123,324) (123,324) (123,324)

10.6 Land
Carrying value at 1 July 998,891,764 1,089,837,130 998,891,764 1,089,837,130
Cost 1,140,397,933 1,095,638,197 1,140,397,933 1,095,638,197
Accumulated depreciation – cost (141,506,169) (5,801,067) (141,506,169) (5,801,067)

Acquisitions 1,104,434 10,452,013 1,104,434 10,452,013

Additions 1,104,434 10,452,013 1,104,434 10,452,013
Capital under construction 0 0 0 0
Depreciation – based on cost 0 0 0 0

Carrying value of purification/transfers 0 (101,397,379) 0 (101,397,379)

Cost 0 34,307,723 0 34,307,723
Accumulated depreciation – cost 0 (135,705,102) 0 (135,705,102)

Carrying value at 30 June: 999,996,198 998,891,764 999,996,198 998,891,764

Cost 1,141,502,367 1,140,397,933 1,141,502,367 1,140,397,933
Accumulated depreciation – cost (141,506,169) (141,506,169) (141,506,169) (141,506,169)

10.7 Buildings
Carrying value at 1 July 417,141,081 740,713,636 422,489,863 744,743,588
Cost 701,317,311 1,121,682,404 707,455,026 1,126,353,083
Accumulated depreciation – cost (284,176,230) (380,968,768) (284,965,163) (381,609,495)

Acquisitions 6,005,757 55,733,407 7,178,708 57,052,237

Additions 77,379,357 110,514,007 78,724,850 111,981,043
Capital under construction 0 0 0 0
Depreciation – based on cost (71,373,600) (54,780,600) (71,546,142) (54,928,806)

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R
Carrying value of purification/transfers (58,755) (379,305,962) (58,755) (379,305,962)
Cost (67,846) (530,879,100) (67,846) (530,879,100)
Accumulated depreciation – cost 9,091 151,573,138 9,091 151,573,138

Carrying value at 30 June: 423,088,083 417,141,081 429,609,816 422,489,863

Cost 778,628,822 701,317,311 786,112,030 707,455,026
Accumulated depreciation – cost (355,540,739) (284,176,230) (356,502,214) (284,965,163)

10.8 Other
Carrying value at 1 July 408,679,165 459,205,392 820,460,860 898,611,995
Cost 808,407,385 838,961,627 1,285,958,277 1,305,612,005
Accumulated depreciation – cost (399,728,220) (379,756,235) (465,497,417) (407,000,010)

Acquisitions 9,184,029 (60,360,738) (13,688,823) (93,350,046)

Additions 67,356,442 23,771,923 74,599,765 34,672,435
Capital under construction 64,752,621 39,967,354 64,752,621 39,967,354
Transfer: Threshold assets – cost (8,493,291) 8,493,291
Transfer: Threshold assets – depreciation 1,513,405 (1,513,405)
Depreciation – based on cost (115,945,148) (131,079,901) (153,041,209) (167,989,835)

Carrying value of purification/transfers/disposals (54,047,451) 9,834,511 (55,148,078) 8,219,023

Cost (63,108,790) (102,786,810) (63,135,727) (102,786,810)
Accumulated depreciation – cost 9,061,339 112,621,321 7,987,649 111,005,833

Carrying value at 30 June: 363,815,743 408,679,165 744,644,073 820,460,860

Cost 868,914,367 808,407,385 1,353,681,645 1,285,958,277
Accumulated depreciation – cost (505,098,624) (399,728,220) (609,037,572) (465,497,417)

10.9 TOTAL: Property, Plant and Equipment

Carrying value at 1 July 8,135,246,469 7,298,551,160 8,560,694,946 7,748,139,802
Cost 11,250,946,796 10,127,027,913 11,744,855,654 10,605,536,200
Accumulated depreciation – cost (3,115,700,327) (2,828,476,753) (3,184,160,708) (2,857,396,398)

Acquisitions 2,513,521,664 67,112,329 2,492,455,483 37,417,290

Additions 2,249,992,654 369,466,947 2,259,996,588 384,867,516
Capital under construction 718,349,475 208,739,914 718,349,475 208,739,914
Transfer: Threshold assets – cost (8,800,897) 8,800,897
Transfer: Threshold assets – depreciation 1,630,537 (1,630,537)
Depreciation – based on cost (447,650,105) (518,264,892) (485,890,580) (556,190,140)

Carrying value of purification/transfers/disposals (1,181,353,785) 769,582,980 (1,182,454,412) 767,967,492

Cost (1,192,037,690) 536,911,125 (1,192,064,627) 536,911,125
Accumulated depreciation – cost 10,683,905 232,671,855 9,610,215 231,056,367

Carrying value at 30 June: 9,467,414,348 8,135,246,469 9,863,525,657 8,560,694,944

Cost 13,018,450,338 11,250,946,796 13,522,336,193 11,744,855,652
Accumulated depreciation – cost (3,551,035,990) (3,115,700,327) (3,658,810,536) (3,184,160,708)

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R
10.10. Investment Property
Carrying value at 1 July 11,950,765 1,678,026 19,441,422 9,168,683
Cost 44,792,509 1,707,296 52,283,166 9,197,953
Accumulated depreciation – cost (32,841,744) (29,270) (32,841,744) (29,270)

Acquisitions (1,497,613) 391,840 (1,497,613) 391,840

Additions 0 450,000 0 450,000
Capital under construction 0 0 0 0
Depreciation – based on cost (1,497,613) (58,160) (1,497,613) (58,160)

Carrying value of purification/transfers/disposals 0 9,880,899 2,509,343 9,880,899

Cost 0 42,635,213 2,509,343 42,635,213
Accumulated depreciation – cost 0 (32,754,314) 0 (32,754,314)

Carrying value at 30 June: 10,453,152 11,950,765 20,453,152 19,441,422

Cost 44,792,509 44,792,509 54,792,509 52,283,166
Accumulated depreciation – cost (34,339,357) (32,841,744) (34,339,357) (32,841,744)

10.11 Intangible Assets

Carrying value at 1 July 95,359,784 158,519,840 95,359,784 158,519,840
Cost 125,103,123 198,133,925 125,103,123 198,133,925
Accumulated depreciation – cost (29,743,339) (39,614,085) (29,743,339) (39,614,085)

Acquisitions 2,675,188 (40,089,559) 2,663,953 (40,089,559)

Additions 33,843,313 171,421 33,846,553 171,421
Capital under construction 0 0 0 0
Depreciation – based on cost (31,168,125) (40,260,980) (31,182,600) (40,260,980)

Carrying value of purification/transfers/disposals 0 (23,070,497) 72,375 (23,070,497)

Cost 0 (73,202,223) 14,475 (73,202,223)
Accumulated depreciation – cost 0 50,131,726 57,900 50,131,726

Carrying value at 30 June: 98,034,972 95,359,784 98,038,212 95,359,784

Cost 158,946,436 125,103,123 159,007,576 125,103,123
Accumulated depreciation – cost (60,911,464) (29,743,339) (60,969,364) (29,743,339)

10.12 GRAND TOTAL

Carrying value at 1 July 8,242,557,018 7,458,749,026 8,675,496,152 7,915,828,325
Cost 11,420,842,428 10,326,869,134 11,922,241,943 10,812,868,078
Accumulated depreciation – cost (3,178,285,410) (2,868,120,108) (3,246,745,791) (2,897,039,753)

Acquisitions 2,514,699,239 27,414,610 2,486,451,463 (2,280,429)

Additions 2,275,035,070 370,088,368 2,285,042,244 385,488,937
Capital under construction 718,349,475 208,739,914 718,349,475 208,739,914
Transfer: Threshold assets – cost 0 8,800,897
Transfer: Threshold assets – depreciation 0 (1,630,537)
Depreciation – based on cost (478,685,306) (558,584,032) (516,940,256) (596,509,280)

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R
Carrying value of purification/transfers/disposals (1,181,353,785) 756,393,382 (1,179,930,594) 754,777,894
Cost (1,192,037,690) 506,344,115 (1,189,497,384) 506,344,115
Accumulated depreciation – cost 10,683,905 250,049,267 9,566,790 248,433,779

Carrying value at 30 June: 9,575,902,472 8,242,557,018 9,982,017,021 8,675,496,152

Cost 13,222,189,283 11,420,842,428 13,736,136,278 11,922,241,943
Accumulated depreciation – cost (3,646,286,811) (3,178,285,410) (3,754,119,257) (3,246,745,791)

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

The Council has approved a process for the purification of these globular assets to the individual assets. The Municipality is now in
the third year of a three-year cycle to purify the data of the fixed asset register. All new assets acquired since 1 July 2004 are recog-
nised and depreciated individually as per the requirements of GAMAP 17.

Note: No revaluation and/or impairment of assets can be undertaken until the purification process is finalised.

The purification process entailed 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 their correct recording 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

10.13 Leased Assets

Carrying value at 1 July 197,234,792 135,342,897 212,108,487 151,997,351
Cost 267,593,177 164,174,783 285,232,242 183,291,200
Accumulated depreciation – cost (70,358,385) (28,831,886) (73,123,755) (31,293,849)

Acquisitions 54,079,719 61,891,895 53,277,944 61,398,224

Additions 116,938,302 103,418,394 116,938,302 103,418,394
Capital under construction 0 0 0 0
Depreciation – based on cost (62,858,583) (41,526,499) (63,660,358) (42,020,170)

Carrying value of purification/transfers/disposals 0 0 (308,104) (1,287,087)

Cost 0 0 0 (1,477,352)
Accumulated depreciation – cost 0 0 (308,104) 190,265

Carrying value at 30 June: 251,314,511 197,234,792 265,078,327 212,108,489

Cost 384,531,479 267,593,177 402,170,544 285,232,244
Accumulated depreciation – cost (133,216,968) (70,358,385) (137,092,217) (73,123,755)

Accounting for finance leases was only done from 2007/08. However, the 2006/07 figures were restated.

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R

11 Biological Assets: Livestock

Carrying amount at the beginning of the financial year 11,014,558 10,458,980 11,014,558 10,458,980
Gain: Changes in fair value due to physical changes 3,726,697 555,578 3,726,697 555,578
and price changes
Carrying amount at the end of the financial year 14,741,255 11,014,558 14,741,255 11,014,558

12 Investments

12.1 Held-to-Maturity Investments

Unlisted
Shares * 0 1,128,029 0 1,128,029
Municipal stock 3,033,002 6,056,959 3,033,002 6,056,959
* A contract is in place with a specific maturity date. 3,033,002 7,184,988 3,033,002 7,184,988
Financial instruments
Fixed deposits 416,767,411 398,992,765 423,625,129 405,784,035
Assurance companies 5,752,656 5,106,155 5,752,656 5,106,155
422,520,067 404,098,920 429,377,785 410,890,190
Total: Held-to-maturity investments 425,553,069 411,283,908 432,410,787 418,075,178

12.2 Available-for-Sale Investments

Short-term deposits and call deposits 235,135,631 558,674,497 272,462,172 614,937,475
TOTAL INVESTMENTS 660,688,700 969,958,405 704,872,959 1,033,012,653
Market value of listed investments, and manage-
ment’s valuation of unlisted investments

Unlisted investments 660,688,700 969,958,405 704,872,959 1,033,012,653

No impairment occurred during the financial year.

Average rate of return on long-term investments: 14,10% (2006/07 = 13,30%)
Average rate of return on short-term investments:10,43% (2006/07 = 8,50%)

The Municipal Finance Management Act, 2003 (Act 56 of 2003), requires local authorities to invest funds that are not immediately
required with prescribed institutions. 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.

13 Long-Term Receivables

Consumers: Arrangement debtors 202,597,529 220,595,717 202,597,529 220,595,717

Housing loans 59,092,140 67,613,043 59,092,140 67,613,043
Motor car loans 2,161,952 8,080,676 2,161,952 8,080,676
Loans to sports clubs 1,688,951 1,729,108 1,688,951 1,729,108
Computer loans 0 65 0 65
Study loans 13,930 15,546 13,930 15,546
Sale of land 65,779,894 69,882,327 65,779,894 69,882,327
Samrand Development (Pty) Ltd 0 18,152,564 0 18,152,564
Loan to Botselo Water: Sandspruit 0 0 1,506,051
331,334,396 386,069,046 331,334,396 387,575,097

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R
Less: Current portion transferred to current 103,377,148 27,840,367 103,377,148 27,840,367
receivables 227,957,248 358,228,679 227,957,248 359,734,730
Less: Provision for bad debt: Housing loans 38,194,441 36,202,047 38,194,441 36,202,047
Total: Long-term receivables 189,762,807 322,026,632 189,762,807 323,532,683

Reconciliation of Bad Debt Provision

Balance at the beginning of the year 36,202,047 34,306,320 36,202,047 34,306,320
Contributions to provision 1,992,394 1,895,727 1,992,394 1,895,727
Balance at the end of the year 38,194,441 36,202,047 38,194,441 36,202,047

Consumer: Arrangement Debtors
A policy exists granting 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 year and are repayable over
periods of 20 and 30 years.

Motor Car Loans

Senior staff were entitled to motor car loans which attract interest at 8,5% per year and which are
repayable over a maximum period of six years. This practice has been terminated in terms of the
MFMA and the last loan will be fully repaid in October 2009.

Loans to Sports Clubs

Sports clubs that do qualify, sign a 99-year leasehold agreement with the Municipality at a nomi-
nal amount and are provided with financial assistance from the Municipality to build or improve
a facility, which funds are repayable over a period. The club has no claim to the improvements
after the leasehold agreement has expired.

Computer Loans
Staff were entitled to an interest-free computer loan which was repayable over a period of five
years. This practice has been terminated in terms of the MFMA and the last loan will 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 has been terminated in terms of the
MFMA. The last payment cannot be determined at present as some of the employees are still
studying.

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 CHAPTER FOUR: Financial Statements

Children of employees of the Municipality also qualified for study loans which attracted an in-
terest rate applicable during the period of application as determined by the Municipality at the
time of the application and the approval thereof. No more new study loans are issued by the
Municipality.

Sale of Land Debtors

Vacant properties are sold through a process administered by Property Legal Services. Contracts
are signed and advices for the opening of individual accounts, which indicate the amount of
the deposit (10%) and VAT (14%), are issued. The contract stipulates from when interest is pay-
able (immediately after signing the contract or after 12 months). The interest rate used is the
Municipality’s mortgage bond rate which currently is 11%. Interest is calculated monthly on the
outstanding balance of the property.

Samrand Development (PTY) LTD

This debtor holds a long-outstanding consumer debt. The negotiations were completed during
2007/08, the necessary offsetting was done and the assets were brought into account.

Loan to Botselo Water (Sandspruit)

This loan is unsecured, interest free with no specific terms of repayment.

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R

14 Inventory

Stock represents consumable stock, raw materials, 196,287,554 140,829,697 212,603,847 184,623,282
work in progress and finished goods.
Quarry 812,232 501,539 812,232 501,539
Coal (power stations) 16,287,079 22,031,408 16,287,079 22,031,408
Plants 55,127 99,379 55,127 99,379
Bulk water 3,160,425 2,482,172 3,160,425 2,482,172
Net inventory 216,602,417 165,944,195 232,918,710 209,737,780

15 Consumer Debtors

The City of Tshwane (parent) has a consolidated account billing system. The debtors are divided per service category on a pro rata
basis based on the levies. The provision for bad debt is therefore not available per income group.

Service debtors 3,510,213,512 3,146,540,369 3,712,763,228 3,293,028,331

874,215,083 694,221,969 874,199,921 694,221,969

Electricity 1,420,106,081 1,352,679,005 1,420,017,104 1,352,679,005

Water 767,648,642 679,889,865 970,302,497 826,377,827

Sewerage 190,015,285 169,777,929 190,015,285 169,777,929

Refuse removal 258,228,421 249,971,601 258,228,421 249,971,601

Less: Arrangement debtors 202,597,529 220,595,716 202,597,529 220,595,716

3,307,615,983 2,925,944,653 3,510,165,699 3,072,432,615

Less: Provision for bad debt 914,443,852 881,557,955 1,108,845,887 1,025,420,794

Consumer debtors per balance sheet 2,393,172,131 2,044,386,698 2,401,319,812 2,047,011,821

The Council approved R110 955 058 including VAT to be written off for the parent. However, only R100 732 978 (2007: R86 736
741) was written off as bad debt by the parent municipality. This represents 0,99% (2007: 1,01%) of the total operating income for
the year.

Ageing: Total
Current (0 – 30 days) 1,038,361,586 890,777,901 1,240,911,302 1,037,265,863
31 – 60 days 197,017,183 191,055,500 197,017,183 191,055,500
61 – 90 days 101,991,952 65,548,626 101,991,952 65,548,626
91 + days 2,172,842,791 1,999,158,342 2,172,842,791 1,999,158,342
3,510,213,512 3,146,540,369 3,712,763,228 3,293,028,331

Rates: Ageing
Current (0 – 30 days) 331,763,142 226,797,015 331,747,980 226,797,015
31 – 60 days 43,852,936 44,312,481 43,852,936 44,312,481
61 – 90 days 30,332,616 23,153,018 30,332,616 23,153,018
91 + days 468,266,389 399,959,455 468,266,389 399,959,455
874,215,083 694,221,969 874,199,921 694,221,969
Electricity: Ageing
Current (0 – 30 days) 378,056,908 405,700,048 377,967,931 405,700,048
31 – 60 days 133,732,668 94,168,975 133,732,668 94,168,975
61 – 90 days 32,478,155 17,724,793 32,478,155 17,724,793
91 + days 875,838,350 835,085,189 875,838,350 835,085,189
1,420,106,081 1,352,679,005 1,420,017,104 1,352,679,005

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R

Water: Ageing
Current (0 – 30 days) 169,801,796 168,963,447 372,455,651 315,451,409
31 – 60 days 53,091,401 36,569,219 53,091,401 36,569,219
61 – 90 days 20,609,103 16,514,682 20,609,103 16,514,682
91 + days 524,146,342 457,842,517 524,146,342 457,842,517
767,648,642 679,889,865 970,302,497 826,377,827
Sanitation: Ageing
Current (0 – 30 days) 42,146,336 39,039,899 42,146,336 39,039,899
31 – 60 days 12,606,297 7,949,450 12,606,297 7,949,450
61 – 90 days 4,438,100 3,406,292 4,438,100 3,406,292
91 + days 130,824,552 119,382,288 130,824,552 119,382,288
190,015,285 169,777,929 190,015,285 169,777,929
Solid Waste: Ageing
Current (0 – 30 days) 46,798,851 50,277,491 46,798,851 50,277,491
31 – 60 days 10,505,708 8,055,375 10,505,708 8,055,375
61 – 90 days 5,771,804 4,749,841 5,771,804 4,749,841
91 + days 195,152,058 186,888,894 195,152,058 186,888,894
258,228,421 249,971,601 258,228,421 249,971,601

Summary of consumer debtors by customer classification

Household 2,348,332,840 2,048,397,780 2,550,882,556 2,194,885,742

Industrial/commercial 666,940,567 814,953,956 666,940,567 814,953,956
National and provincial government 49,142,989 72,370,428 49,142,989 72,370,428
Other 445,797,116 210,818,205 445,797,116 210,818,205
Total consumer debtors by customer classification 3,510,213,512 3,146,540,369 3,712,763,228 3,293,028,331

Reconciliation of Bad Debt Provision

Balance at the beginning of the year 881,557,955 830,673,256 1,025,420,794 1,068,446,752
Contributions to provision 32,885,897 50,884,699 83,425,093 (43,025,958)
Balance at the end of the year 914,443,852 881,557,955 1,108,845,887 1,025,420,794

16 Other Debtors

Housing debtors 12,687,578 9,961,181 31,267,285 21,499,010

Government subsidies 12,303,500 7,075,000 12,303,500 7,075,000
RSC levies debtor 200,675,211 236,729,088 200,675,211 236,729,088
Amounts paid in advance 0 50,826,104 4,169,752 54,415,928
Other current debtors 257,117,885 231,044,616 275,294,722 245,905,087
482,784,174 535,635,989 523,710,470 565,624,113
Less: Provision for bad debt 246,003,159 100,967,058 260,915,197 109,137,273
Total: Other debtors 236,781,015 434,668,931 262,795,273 456,486,840

Reconciliation of Bad Debt Provision

Balance at the beginning of the year 100,967,058 46,995,190 100,967,058 46,995,190

Contributions to provision 145,036,101 53,971,868 145,036,101 62,142,083
Balance at the end of the year 246,003,159 100,967,058 246,003,159 109,137,273

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R

17 Call Investment Deposits

Other deposits/call investments 568,644,654 634,478,486 605,971,195 690,741,464

Other deposits of R42 555 306 911 (2007 = R411 283 908) are ring-fenced and attributable to the Capital Replacement Reserve
of R307 157 479. Fixed deposits amounting to R568 644 654 (2007 = R634 478 486) have also been ring-fenced for repaying
long-term liabilities. Refer to note 31.

18 Bank, Cash and Overdraft Balances

The Municipality (parent) has the following bank accounts:

18.1 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)
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 15,413,275 (29,715,301) 15,413,275 (29,715,301)
Cash book balance at the end of the year 12,781,873 15,413,275 12,781,873 15,413,275
Bank statement balance at the beginning of the year 17,907,552 60,295,912 17,907,552 60,295,912
Bank statement balance at the end of the year 37,657,228 17,907,552 37,657,228 17,907,552

FNB
Cash book balance at the beginning of the year (2,374) 3,509,343 (2,374) 3,509,343
Cash book balance at the end of the year 8,630,642 (2,374) 8,630,642 (2,374)
Bank statement balance at the beginning of the year 10,499,069 3,517,003 10,499,069 3,517,003
Bank statement balance at the end of the year 9,594,524 10,499,069 9,594,524 10,499,069

Standard Bank (opened 1 July 2006)

Cash book balance at the beginning of the year (45,999,764) 0 (45,999,764) 0
Cash book balance at the end of the year - (overdrawn) (106,407,370) (45,999,764) (106,407,370) (45,999,764)
Bank statement balance at the beginning of the year 38,863,430 0 38,863,430 0
Bank statement balance at the end of the year 11,907,106 38,863,430 11,907,106 38,863,430

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R

18.2 Insurance contingency (opened 1 July 2005)

Absa (Account 4062593950)
Cash book balance at the beginning of the year 41,285,499 7,972,921 41,285,499 7,972,921
Cash book balance at the end of the year 7,449,875 41,285,499 7,449,875 41,285,499
Bank statement balance at the beginning of the year 41,285,499 7,972,921 41,285,499 7,972,921
Bank statement balance at the end of the year 7,449,875 41,285,499 7,449,875 41,285,499

18.3 Tshwane Market (primary account)

FNB – Church Square branch (Account 51421161509)
Cash book balance at the beginning of the year 12,408,157 7,073,890 12,408,157 7,073,890
Cash book balance at the end of the year 14,111,226 12,408,157 14,111,226 12,408,157
Bank statement balance at the beginning of the year 12,604,882 6,665,740 12,604,882 6,665,740
Bank statement balance at the end of the year 14,801,812 12,604,882 14,801,812 12,604,882

18.4 Petty cash/cashier floats 262,077 242,338 270,993 247,262

18.5 BANK ACCOUNTS: MUNICIPAL ENTITIES

18.5.1 Roodeplaat/Temba Water Services Trust

Absa – Current account (Account 4058159742)
Cash book balance at the beginning of the year 36,772,659 39,183,111
Cash book balance at the end of the year 27,932,978 36,772,659
Bank statement balance at the beginning of the year 36,772,659 39,183,111
Bank statement balance at the end of the year 27,932,978 36,772,659

Absa – Deposit account – Roodeplaat (Account 4059250408)

Cash book balance at the beginning of the year 13,150,214 22,074,114

Cash book balance at the end of the year 0 13,150,214
Bank statement balance at the beginning of the year 13,150,214 22,074,114
Bank statement balance at the end of the year 0 13,150,214

Absa – Debt Service Reserve account (Account 4058337269)

Cash book balance at the beginning of the year 97,790,718 90,045,565

Cash book balance at the end of the year 108,720,424 97,790,718
Bank statement balance at the beginning of the year 97,790,718 90,045,565
Bank statement balance at the end of the year 108,720,424 97,790,718

Absa – Deposit account – Temba (Account 405832325)

Cash book balance at the beginning of the year 5,624,184 30,685,615

Cash book balance at the end of the year 0 5,624,184
Bank statement balance at the beginning of the year 5,624,184 30,685,615
Bank statement balance at the end of the year 0 5,624,184

Absa – Operating Reserve account (Account 4058337073)

Cash book balance at the beginning of the year 543,094 501,538

Cash book balance at the end of the year 603,053 543,094
Bank statement balance at the beginning of the year 543,094 500,338
Bank statement balance at the end of the year 603,053 543,094

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R
Absa – Capital Reserve account (Account 4058337358)

Cash book balance at the beginning of the year 10,841,875 10,000,341

Cash book balance at the end of the year 12,052,595 10,841,875
Bank statement balance at the beginning of the year 10,841,875 10,000,341
Bank statement balance at the end of the year 12,052,595 10,841,875

18.5.2 Trade Point Pretoria

Absa – Current account (Account 4054625800)
Cash book balance at the beginning of the year 112,278 112,278
Cash book balance at the end of the year 50,670 50,670
Bank statement balance at the beginning of the year 176,645 176,645
Bank statement balance at the end of the year 50,413 50,413

18.5.3 Sandspruit Works Waste Water Treatment

Absa – Current account (Account 4051139634)
Cash book balance at the beginning of the year 7,030,146 4,469,149
Cash book balance at the end of the year 482,713 7,030,146
Bank statement balance at the beginning of the year 6,985,969 4,517,902
Bank statement balance at the end of the year 482,713 6,985,969

18.5.4 Sandspruit Works ODI Water

Standard Bank – Current account (Account 032250738000)

Cash book balance at the beginning of the year 5,672,412 11,518,431

Cash book balance at the end of the year 9,771,497 5,672,412
Bank statement balance at the beginning of the year 0 12,958,687
Bank statement balance at the end of the year 10,205,841 0

Standard Bank – Current account (Account 031906842000)

Cash book balance at the beginning of the year 44,588 105,948

Cash book balance at the end of the year (271,149) 44,588
Bank statement balance at the beginning of the year 0 439,551
Bank statement balance at the end of the year 97,226 0

Standard Bank – Call account (Account 738717959002)

Cash book balance at the beginning of the year 0 14,197

Cash book balance at the end of the year 0 0

Bank statement balance at the beginning of the year 0 14,197

Bank statement balance at the end of the year 0 0

Standard Bank – Call account (Account 738717959003)

Cash book balance at the beginning of the year 0 618,109

Cash book balance at the end of the year 0 0
Bank statement balance at the beginning of the year 0 618,109
Bank statement balance at the end of the year 0 0

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R
Standard Bank – Call account (Account 738717959001)

Cash book balance at the beginning of the year 5,923,714 4,236,574

Cash book balance at the end of the year 8,685,895 5,923,714
Bank statement balance at the beginning of the year 0 4,236,574
Bank statement balance at the end of the year 8,685,895 0

Enterprise South Africa

Absa – Current account (Account 4059489340)
Cash book balance at the beginning of the year 0 (5,843)
Cash book balance at the end of the year 0 (5,843)
Bank statement balance at the beginning of the year 0 8,740
Bank statement balance at the end of the year 0 8,740

Civirelo Water
Absa – Current account (Account 4052561692)
Cash book balance at the beginning of the year 4,252,125 4,117,177
Cash book balance at the end of the year 2,084,786 4,252,125
Bank statement balance at the beginning of the year 6,011,060 4,117,177
Bank statement balance at the end of the year 1,849,223 6,011,060

Housing Company Tshwane

Absa – Current account (Accounts 4057481879
and 4065722829)
Cash book balance at the beginning of the year 3,999,822 3,805,095
Cash book balance at the end of the year 849,007 3,999,822
Bank statement balance at the beginning of the year 3,709,294 3,742,286
Bank statement balance at the end of the year 787,871 3,709,294

Tshwane Centre for Business Information and Support

Absa – Current account (Account 4050437263)
Cash book balance at the beginning of the year 94,686 94,686
Cash book balance at the end of the year 55,914 55,914
Bank statement balance at the beginning of the year 71,884 71,884
Bank statement balance at the end of the year 53,375 53,375

PROPERTY RATES
Actual income 2,181,017,691 1,719,224,465 2,180,952,393 1,719,158,593

Site values as at 1 July:

Residential 14,313,139,046 14,495,588,615 14,313,139,046 14,495,588,615

Other 8,302,880,615 6,837,110,872 8,302,880,615 6,837,110,872

Total property valuation * 22,616,019,661 21,332,699,487 22,616,019,661 21,332,699,487

* The decrease in the valuation since 2006/07 is 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 are levied on the site valuations. A rebate is granted to owners of special
dwellings. People 60 years or older, and physically or mentally handicapped people who can substantiate receipt of a social pension,
and people certified by the Medical Officer of Health as physically or mentally handicapped, can qualify for a rebate, subject to certain
other conditions. The tariff applicable is 14,43c/rand (2006/07 = 13,48c/rand).

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R

Service Charges
Sale of electricity 3,034,977,097 2,664,517,715 3,033,671,453 2,664,157,955
Sale of water 1,232,886,383 1,036,700,846 1,320,258,384 1,107,789,579
Refuse removal 267,689,295 250,699,662 267,689,295 250,699,662
Sewerage and sanitation charges 303,405,995 249,566,964 303,405,995 249,566,964
Total: Service charges 4,838,958,770 4,201,485,187 4,925,025,127 4,272,214,160

21 Government Grants and Subsidies

Equitable share 1,101,416,093 1,002,649,865 1,101,416,093 1,002,649,865

Housing: Municipality 0 0 692,552

Magalies Water 0 0 8,040
Sandspruit: Department of Water Affairs and Forestry 0 2,273,220 0
Provincial Health Subsidies 22,669,000 21,498,600 22,669,000 21,498,600
Provincial Ambulance Subsidy 35,079,283 31,199,756 35,079,283 31,199,756
National Safety Grant 0 418,718 0 418,718
Provincial motor vehicle licences refund 66,191,344 58,252,483 66,191,344 58,252,483
Capex: Grants and donations 467,680,281 317,833,940 467,680,281 317,833,940
Opex: Grants and donations 24,371,883 3,471,779 24,371,883 3,471,779
Finance Management Grant 698,715 2,117,862 698,715 2,117,862
Restructuring Grant 52,227,861 48,371,166 52,227,861 48,371,166
Municipal Systems Infrastructure Grant 2,501,600 2,000,000 2,501,600 2,000,000
DWAF Grant (parent) 18,789,823 14,264,950 18,789,823 14,264,950
Top Structure Grants 125,601,978 39,014,522 125,601,978 39,014,522
RTWST Grant 0 25,000,000 0 0
Ntsika 0 0 0 0
SEDA 0 0 0 0
Total: Government grants and subsidies 1,917,227,861 1,566,093,641 1,919,501,081 1,541,794,233

21.1 Equitable share

In terms of the Constitution, this grant is used to subsidise the provision of basic services to indigent community members. All registered
indigent households receive a monthly subsidy, which is funded from this grant.

Total amount of equitable share received 1,101,416,093 1,002,649,865 1,101,416,093 1,002,649,865

Monthly grant received by all registered indigents 148 168 148 168

21.2 Provincial Health Subsidies

Balance unspent at the beginning of the year 0 0 0 0
Current year receipts (included in Public Health Vote) 22,669,000 21,498,600 22,669,000 21,498,600
Conditions met (transferred to revenue) (22,669,000) (21,498,600) (22,669,000) (21,498,600)
Conditions still to be met (transferred to liabilities, 0 0 0 0
see note 8)

The Municipality renders health services on behalf of the provincial government. This grant has been used exclusively to fund clinic
services (included in the Social Development Vote in Annexure D). The conditions of the grant have been met. There was no delay or
withholding of the subsidy.

Percentage of expenditure incurred refunded = 14,94%

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R

21.3 Provincial Ambulance Subsidy

Balance unspent at the beginning of the year 0 0 0 0
Current year receipts ( included in the emergency Medical 35,079,283 31,199,756 35,079,283 31,199,756
Services Vote)

Conditions met ( transferred to revenue) (35,079,283) (31,199,756) (35,079,283) (31,199,756)

Conditions still to be met (transferred to liabilities, 0 0 0 0
see note 8)

The Municipality renders ambulance services on behalf of the provincial government and is reimbursed. This grant has been used ex-
clusively to fund the rendering of ambulance services (included in the Emergency Medical Services Vote in Annexure D). The conditions
of the grant have been met. There was no delay or withholding of the subsidy.

Percentage of expenditure incurred refunded = 64,08%

21.4 MIG
Balance unspent at the beginning of the year 19,794,905 0 19,794,905 0
Current year receipts 236,438,749 205,944,000 236,438,749 205,944,000
Conditions met (transferred to revenue) (220,341,029) (186,149,095) (220,341,029) (186,149,095)
Conditions still to be met (transferred to liabilities, 35,892,625 19,794,905 35,892,625 19,794,905
see note 8)

This grant is used to construct roads and sewerage infrastructure as part of the capital expenditure (included in the Roads and Sewerage
Votes in Annexure B). No funds have been withheld.

21.5 Finance Management Grant

Balance unspent at the beginning of the year 1,503,403 3,121,266 1,503,403 3,121,266
Current year receipts 500,000 500,000 500,000 500,000
Conditions met (transferred to revenue) (698,716) (2,117,863) (698,716) (2,117,863)
Conditions still to be met (transferred to liabilities, 1,304,687 1,503,403 1,304,687 1,503,403
see note 8)

This grant is 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 have been withheld.

21.6 Municipal System Improvement Grant

Balance unspent at the beginning of the year 3,000,000 5,000,000 3,000,000 5,000,000
Current year receipts 0 0 0 0
Conditions met (transferred to revenue) (2,501,600) (2,000,000) (2,501,600) (2,000,000)
Conditions still to be met (transferred to liabilities, 498,400 3,000,000 498,400 3,000,000
see note 8)

This grant is used to assist municipalities in building in-house capacity to perform their functions and stabilise institutional and gover-
nance systems as required by the Local Government: Municipal Systems Act, 2000. No funds have been withheld.

21.7 Restructuring Grant

Balance unspent at the beginning of the year 78,921,695 102,292,860 78,921,695 102,292,860
Current year receipts 150,000,000 25,000,000 150,000,000 25,000,000
Conditions met (transferred to revenue) (142,135,589) (48,371,165) (142,135,589) (48,371,165)
Conditions still to be met (transferred to liabilities, 86,786,106 78,921,695 86,786,106 78,921,695
see note 8)

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R

This grant is funded by National Treasury to assist local government pilot municipalities with institutional, financial and economic
restructuring in line with the City Development Strategy, which is aligned to the national government’s development strategy. No funds
were withheld.

21.8 Department of Water Affairs and Forestry

Balance unspent at the beginning of the year 22,391,328 13,990,911 22,391,328 13,990,911
Current year receipts 21,092,500 22,399,000 21,092,500 23,091,552
Conditions met (transferred to revenue) (43,483,828) (13,998,583) (43,483,828) (14,691,135)
Conditions still to be met (transferred to liabilities, 0 22,391,328 0 22,391,328
see note 8)

This grant was received for the supply of water services for community upliftment.

21.9 City of Tshwane Metropolitan Municipality (Housing Company)

Balance unspent at the beginning of the year 0 0
Current year receipts 117,439 156,444
Conditions met (transferred to revenue) (117,439) (156,444)
Conditions still to be met (transferred to liabilities, 0 0
see note 8)

This grant was received for the administration and operation of Housing Company Tshwane.

21.1 Magalies Water

Balance unspent at the beginning of the year 0 0
Current year receipts 0 8,040
Conditions met (transferred to revenue) 0 (8,040)
Conditions still to be met (transferred to liabilities, 0 0
see note 8)

This grant was received for the installation of water for communal benefit.

21.11 Sandspruit: Department of Water Affairs and Forestry

Balance unspent at the beginning of the year 0 0
Current year receipts 2,273,220 15,921,068
Conditions met (transferred to revenue) (2,273,220) (15,921,068)
Conditions still to be met (transferred to liabilities, 0 0
see note 8)

This grant was received for the refurbishment at Klipgat and Temba Waste Water Treatment Plants.

21.12 Changes in levels of government grants

Based on the allocations set out in the Division of Revenue Act, 2007 (Act 1 of 2007), no significant changes in the level of government
grant funding are expected in the next three financial years.

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R

22 Other Income

Drain-cleaning fees 1,211,910 1,211,073 1,211,910 1,211,073

Reconnections fees 64,805,089 62,458,097 64,805,089 62,458,097
Sewerage fees: Industrial effluent 19,763,957 19,071,458 19,763,957 19,071,458
Interest on housing sales 0 0 0 0
Interest on property sales 5,107,253 3,534,827 5,107,253 3,534,827
Reminder fees 9,400,900 12,816,235 9,400,900 12,816,235
Ambulance fees 5,594,646 3,048,946 5,594,646 3,048,946
Airside income 3,154,100 2,405,526 3,154,100 2,405,526
Connection fees: Urban areas 8,164,438 7,136,538 8,164,438 7,136,538
Cemetery fees 5,016,915 3,662,486 5,016,915 3,662,486
Fees for relaxation of building line 1,641,185 2,249,467 1,641,185 2,249,467
Building plan fees 34,139,148 37,801,683 34,139,148 37,801,683
Library fines 1,051,969 1,091,704 1,051,969 1,091,704
Restaurant sales 1,164,367 1,590,920 1,164,367 1,590,920
Sundry fees 4,517,334 4,492,746 4,517,334 4,492,746
Sundry services 12,659,014 18,518,735 12,659,014 18,518,735
Income from grave services 4,266,198 3,861,237 4,266,198 3,861,237
Application fees 3,927,229 3,967,200 3,927,229 3,967,200
Connection fees 16,220,728 22,789,593 16,220,728 22,789,593
Approval fees: Advertisements 24,761,792 18,071,202 24,761,792 18,071,202
Discount on prompt payments 14,195,991 18,986,536 14,195,991 18,986,536
Market fees 70,793,414 58,483,778 70,793,414 58,483,778
Lodging fees 1,145,624 1,289,166 1,145,624 1,289,166
Parking fees: Vehicles 2,914,839 2,666,683 2,914,839 2,666,683
Training fees recovered 7,622,163 8,927,123 7,622,163 8,927,123
Dumping fees 13,995,089 13,155,331 13,995,089 13,155,331
Income from bulk containers 24,007,366 26,939,459 24,007,366 26,939,459
Sale of livestock 2,891 15,888 2,891 15,888
Sale of stone 6,685,746 3,474,334 6,685,746 3,474,334
Sale of unusable stock 3,953,857 4,656,164 3,953,857 4,656,164
Sales: Aeroplane fuel 29,155,543 16,402,250 29,155,543 16,402,250
Transport fees 45,956,506 44,180,382 45,956,506 44,180,382
Capital income recovered: Insurance claims 2,347,901 475,510 2,347,901 475,510
Claims recovered: Compensation Commissioner 13,553,858 12,606,126 13,553,858 12,606,126
Bad debt recovered 23,248,755 22,625 23,248,755 22,625
Land sales 3,135,084 43,869,372 3,135,084 43,869,372
Miscellaneous 53,535,300 24,901,152 202,219,395 119,972,699
Total: Other income 542,818,099 510,831,552 691,502,194 605,903,099

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R

23 Employee-Related Costs

Salaries and wages 1,672,674,723 1,498,980,113 1,717,065,536 1,532,722,901

Contributions to UIF, pensions and medical aids 495,024,195 515,389,693 495,024,195 515,389,693
Overtime payments 148,420,027 120,883,844 148,420,027 120,883,844
Long-service awards 7,773,287 7,671,604 7,773,287 7,671,604
Travel allowances 178,255,582 170,357,918 178,255,582 170,357,918
Housing benefits and allowances 24,863,274 19,697,494 24,863,274 19,697,494
Performance bonuses 424,329 382,814 424,329 382,814
Other allowances 93,567,426 78,640,892 93,567,426 78,640,892
Total: Employee-related cost 2,621,002,843 2,412,004,372 2,665,393,656 2,445,747,160

Remuneration of the Municipal Manager

(During 2006/07 the Municipal Manager of the parent
was only in office for six months.)
Annual remuneration 891,165 381,162 891,165 381,162
Performance bonuses 0 65,106 0 65,106
Car allowances 128,400 120,000 128,400 120,000
Medical and pension fund contributions 0 13,860 0 13,860
Total 1,019,565 580,128 1,019,565 580,128

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 681,561 476,456 681,561 476,456

Performance bonuses 0 0 0 0
Car allowance 132,000 88,000 132,000 88,000
Medical and pension fund contributions 20,316 13,544 20,316 13,544
Total 833,877 578,000 833,877 578,000

Remuneration of Strategic Executive Directors

Annual remuneration:
Technical services 775,056 765,564 775,056 765,564
Corporate services 2,610,872 3,395,889 2,610,872 3,395,889
Community services 2,255,382 3,625,428 2,255,382 3,625,428
Performance bonuses:
Technical services 0 0 0 0
Corporate services 0 69,594 0 69,594
Community services 0 570,283 0 570,283
Car allowance:
Technical services 90,000 90,000 90,000 90,000
Corporate services 484,000 549,146 484,000 549,146
Community services 253,914 506,712 253,914 506,712
Medical and pension fund contributions:
Technical services 0 0 0 0
Corporate services 20,316 35,160 20,316 35,160
Community services 38,272 158,664 38,272 158,664
6,527,812 9,766,440 6,527,812 9,766,440

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MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R

Total:
Technical services 865,056 855,564 865,056 855,564
Corporate services 3,115,188 4,049,789 3,115,188 4,049,789
Community services 2,547,568 4,861,087 2,547,568 4,861,087
Total: Remuneration of Strategic Executive Directors 6,527,812 9,766,440 6,527,812 9,766,440

24 Remuneration of Councillors

Mayor’s allowance 370,044 294,068 370,044 294,068

Councillors’ allowances 27,806,355 30,160,657 27,806,355 30,160,657
Councillors’ pension contributions 2,931,804 3,219,512 2,931,804 3,219,512
Travelling allowances 10,633,608 11,532,641 10,633,608 11,532,641
Councillors’ medical contributions 810,628 739,170 810,628 739,170
Councillors’ housing allowances 1,648,920 0 1,648,920 0
Total: Remuneration of Councillors 44,201,359 45,946,048 44,201,359 45,946,048

In-kind benefits
The Executive Mayor, Speaker and Members of the Mayoral Committee are full-time. Each is 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 Subsec-
tion has seven staff members, of which five are VIP protection officers.

25 Interest Paid

Long-term liabilities 329,835,287 313,550,043 399,560,180 387,188,062

Leases 29,523,804 37,082,547 29,523,804 37,082,547
Bank overdrafts 2,790,579 586,263 2,797,966 586,296
Total: Interest on external borrowings 362,149,670 351,218,853 431,881,950 424,856,905

26 Bulk Purchases

Electricity 1,540,732,190 1,460,232,898 1,541,157,374 1,460,729,587

Water 666,086,020 670,746,363 673,036,319 676,103,249
Total: Bulk purchases 2,206,818,210 2,130,979,261 2,214,193,693 2,136,832,836

27 Grants and Subsidies Paid

Grants-in-aid 1,094,524 1,066,397 1,094,524 1,066,397

Grants-in-aid: Assessment rates 10,490,155 7,325,860 10,490,155 7,325,860
Total: Grants and subsidies paid 11,584,679 8,392,257 11,584,679 8,392,257

Grants-in-aid is are funds allocated to non-governmental organisations involved in empowerment programmes for the following vulner-
able groups: the youth, children, women, people with disabilities and the elderly.

By way of a majority decision the Municipality has awarded a grant-in-aid on the assessment rates of rateable properties of the classes
referred to in Section 32A of the Local Authorities Rating Ordinance, 1977 (Ordinance 11 of 1977), after the owner of such property
has applied to the Municipality in writing for this grant-in-aid.

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R

28 General Expenses

Included in general expenses are the following amounts above R40 million

Project-linked housing: Top structures 125,601,978 134,903,365 125,601,978 134,903,365

Rental of property, plant and equipment 158,269,883 106,333,883 158,269,883 106,333,883
Household refuse removal 51,225,642 96,024,704 51,225,642 96,024,704
Electricity disconnections 41,664,038 33,928,641 41,664,038 33,928,641
Service providers 74,036,441 76,976,217 74,036,441 76,976,217
Insurance premiums and excesses 50,992,065 65,634,075 50,992,065 65,634,075
Telecommunication 67,798,767 60,019,644 67,798,767 60,019,644
Private sector labour 89,007,286 58,427,175 89,007,286 58,427,175
Special projects 57,324,522 53,149,572 57,324,522 53,149,572
Restructuring/transformation 53,088,532 48,371,166 53,088,532 48,371,166
Rental of property 70,359,518 47,980,620 70,359,518 47,980,620
Watchmen services 80,157,450 45,734,451 80,157,450 45,734,451
Implementation: OITPS 43,965,459 42,983,067 43,965,459 42,983,067
Other 1,240,862,309 860,325,714 1,351,654,085 954,499,485
Total: General expenses 2,204,353,890 1,730,792,294 2,315,145,666 1,824,966,065

29 Cash Generated by Operations

Net surplus for the year 857,443,191 312,924,499 813,826,739 243,140,254

Adjustment for:
Prior-year adjustments (22,976,036) 3,776,564 (22,976,036)
Prior-year adjustments: Property, plant and equipment (2,540,304)
Depreciation 542,316,164 628,929,878 581,372,889 668,719,807
Depreciation corrections 0 1,425,219 0
Gain on the disposal of property, plant and equipment (4,936,900) (20,915,400) (4,936,900) (20,915,400)
Contribution to Provision for the Rehabilitation of Quarries 18,061,985 0 18,061,985 0
Contribution to Provision for the Rehabilitation of Landfill Sites 63,360,000 0 63,360,000 0
Contribution to Provision for Clearing up Alien Vegetation 526,315 6,292,554 526,315 6,292,554
Expenditure: Provision for Clearing up Alien Vegetation 0 (3,898,629) 0 (3,898,629)
Contribution to bad debt provision 179,914,389 106,752,294 237,195,408 20,894,086
Transfer to reserves 0 101,059
Liquidation of municipal entity 0 0 825,151
Investment income (135,554,608) (134,186,955) (158,014,824) (154,277,171)
Interest paid 362,149,670 351,218,853 431,881,950 424,856,905

Operating surplus before working capital changes: 1,883,280,208 1,224,141,058 1,985,935,041 1,162,762,580

Decrease/(increase) in inventories (50,658,221) (57,478,614) (23,180,928) (84,990,324)

(Increase)/decrease in debtors (381,671,331) (109,337,219) (437,733,084) (4,419,700)
(Increase)/decrease in other debtors 52,851,814 (15,144,431) 41,913,643 43,912,168
(Decrease)/increase in conditional grants and receipts 123,901,202 34,491,069 128,184,154 34,491,069
Increase/(decrease) in provisions 0 0 (1,536,192) (2,141,063)
Increase/(decrease) in creditors (79,984,608) 162,644,178 (134,258,233) 163,576,123
Increase/(decrease) in VAT 46,166,365 (108,567,906) 52,450,080 (128,542,405)
Cash generated from operations 1,593,885,429 1,130,748,135 1,611,774,481 1,184,648,448

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R

30 Cash and Cash Equivalents

Cash and cash equivalents included in the cash flow statement are shown in the following statement of amounts indicating financial
position:

Bank balances and cash 43,235,693 69,349,269 214,262,992 261,100,667

Call investment deposits 235,135,631 558,674,497 272,462,172 614,937,475
Bank overdraft (106,407,370) (46,002,138) (106,407,370) (45,996,478)
Total: Cash and cash equivalents 171,963,954 582,021,628 380,317,794 830,041,664

31 Use of Long-term Liabilities Reconciliation

Long-term liabilities (see note 2) 2,878,344,490 2,834,595,467 2,878,344,490 2,834,595,467

Used to finance property, plant and equipment – at cost 3,474,287,272 2,717,572,357 3,474,287,272 2,717,572,357
Subtotal (595,942,782) 117,023,110 (595,942,782) 117,023,110

Cash set aside for the repayment of long-term liabilities 568,644,654 634,478,486 568,644,654 634,478,486
Cash invested for the repayment of long-term (1,164,587,436) (517,455,376) (1,164,587,436) (517,455,376)
liabilities (see note 17)

Long-term liabilities have been used in accordance with the Municipal Finance Management Act. Sufficient cash has been set aside to
repay long-term liabilities on their redemption date.

Included in the amount used to finance PPE (R3 501 258 960) is temporary advances (R761 199 084), which were temporarily fi-
nanced out of revenue in expectation of the receipt of external loans over the year end.

32 Additional Disclosures in terms of the Municipal Finance Management Act

32.1 Contributions to organised local government

Opening balance 78,729 69,522 78,729 69,522
Council subscriptions 1,006,419 935,819 1,006,419 935,819
Amount paid – current year (1,006,419) (857,090) (1,006,419) (857,090)
Amount paid – previous years (78,729) (69,522) (78,729) (69,522)
Balance unpaid (included in creditors) 0 78,729 0 78,729

32.2 Audit fees

Opening balance 1,811,162 0 1,886,162 (14,053)
Current year audit fee 8,381,197 8,692,761 8,693,672 7,753,195
Amount paid – current year (6,518,057) (6,881,599) (6,830,532) (5,942,033)
Amount paid – previous years (1,811,162) 0 (1,886,162) 14,053
Balance unpaid (included in creditors) 1,863,140 1,811,162 1,863,140 1,811,162

The balance is with regard to the previous financial year and was paid in the next financial year.

32.3 VAT

VAT inputs receivables and VAT outputs receivables are shown in note 9.
All VAT returns have been submitted by the due date throughout the financial year.

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R

32.4 PAYE and UIF

Opening balance 28,010,798 25,601,727 28,012,016 25,601,727
Current year payroll deductions 355,353,962 330,757,910 360,353,795 353,550,300
Amount paid – current year (325,358,372) (302,747,115) (330,195,695) (325,538,287)
Amount paid – previous years (28,010,795) (25,601,727) (28,012,013) (25,601,727)
Balance unpaid (included in creditors) 29,995,593 28,010,795 30,158,103 28,012,013

32.5 Pension and medical aid deductions

Opening balance 0 0 0 0
Current year payroll deductions and Council contributions 698,773,018 646,873,547 698,773,018 646,873,547
Amount paid – current year (698,773,018) (646,873,547) (698,773,018) (646,873,547)
Amount paid – previous years 0 0 0 0
Balance unpaid (included in creditors) 0 0 0 0

32.6 Councillor’s arrear consumer accounts

Amounts outstanding for more than 90 days

Aucamp, MGW 0 6,872 0 6,872

Blaauw, MP 0 8,585 0 8,585
Buthelezi, MM 59,636 48,779 59,636 48,779
Dzumba, KY 11,466 12,741 11,466 12,741
Dichabe, MM 112 0 112 0
Dlamini, SS 274 0 274 0
Hoseka, NP 2,882 0 2,882 0
Huma, SE 1,546 0 1,546 0
Kekana, KC 0 848 0 848
Kgashane, S 0 27,159 0 27,159
Kwenda, LH 0 179 0 179
Ledwaba, DC 5,278 3,694 5,278 3,694
Lehobye, MJ 315 0 315 0
Linde, E 921 0 921 0
Majeng, MJ 288 0 288 0
Maluleka, EM and HW 1,295 0 1,295 0
Makola, MA 0 11,325 0 11,325
Moagi, CM 0 1,527 0 1,527
Moagi, TS 1,772 0 1,772 0
Modumaela, BE 4,342 0 4,342 0
Mogaladi, MJ 103 214 103 214
Morudi, MS 21,936 4,754 21,936 4,754
Mthetwa, D 0 4,724 0 4,724
Naid, AT 0 304 0 304
Naiker, SS 1,144 0 1,144 0
Ndoko, EN 0 506 0 506
Nkwashu, CS 1,754 0 1,754 0
Nkwashu, MS 0 332 0 332
Ramokgopa, KD 0 5,786 0 5,786
Segabutla, LO 112 684 112 684
Seoketsa, G 0 27,750 0 27,750
Total 115,176 166,763 115,176 166,763

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R

Councillors with Payoff Arrangements

Campbell, AW 0 1,426 0 1,426

Dzumba, KY 0 1,566 0 1,566
Feldman, JD 0 23,678 0 23,678
Huma, SE 0 5,727 0 5,727
Kutumela, J 0 5,293 0 5,293
Kutumela, MJ 0 2,141 0 2,141
Lepati, MA 9,276 0 9,276 0
Mamabolo, CS 5,596 6,714 5,596 6,714
Mokgalapa, S and BP 2,729 0 2,729 0
Matjokane, NY 0 57,198 0 57,198
Morudi, MS 0 9,470 0 9,470
Mthetwa, D 10,000 3,728 10,000 3,728
Rambau, TV 4,900 3,605 4,900 3,605
Ramokgopa, GM 0 832 0 832
Segabutla, LO 0 520 0 520
Seoketsa, G 30,914 0 30,914 0
Swarts, AP 2,575 1,664 2,575 1,664
Theron, DP 0 5,260 0 5,260
Thipe, SS 0 3,037 0 3,037
Thobejane, PTM 0 2,457 0 2,457
Thipe, J 2,312 0 2,312 0
Total 68,302 134,316 68,302 134,316

Total Amount Outstanding

Aucamp, MGW 0 6,872 0 6,872

Blaauw, MP 0 8,585 0 8,585
Buthelezi, MM 59,636 48,779 59,636 48,779
Campbell, AW 0 1,426 0 1,426
Dlamini, SS 274 0 274 0
Dichabe, MM 112 0 112 0
Dzumba, KY 11,466 14,307 11,466 14,307
Feldman, JD 0 23,678 0 23,678
Hoseka, NP 2,882 0 2,882 0
Huma, SE 1,546 5,727 1,546 5,727
Kekana, KC 0 848 0 848
Kgashane, S 0 27,159 0 27,159
Kutumela, J 0 5,293 0 5,293
Kutumela, MJ 0 2,141 0 2,141
Kwenda, LH 0 179 0 179
Ledwaba, DC 5,278 3,694 5,278 3,694
Lehobye, MJ 315 0 315 0
Lepati, MA 9,276 0 9,276 0
Linde, E 921 0 921 0
Majeng, MJ 288 0 288 0
Maluleka, EM and HW 1,295 0 1,295 0
Makola, MA 0 11,325 0 11,325

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R

Moagi, CM 0 1,527 0 1,527

Moagi, TS 1,772 0 1,772 0
Modumaela, BE 4,342 0 4,342 0
Mogaladi, MJ 103 214 103 214
Morudi, MS 21,936 14,224 21,936 14,224
Mamabolo, CS 5,596 6,714 5,596 6,714
Matjokana, NY 0 57,198 0 57,198
Mokgalapa, S and BP 2,729 0 2,729 0
Mthewa, D 10,000 8,452 10,000 8,452
Naid, AT 0 304 0 304
Naiker, SS 1,144 0 1,144 0
Ndoko, EN 0 505 0 505
Nkwashu, CS 1,754 0 1,754 0
Nkwashu, MS 0 332 0 332
Rambau, TV 4,900 3,605 4,900 3,605
Ramokgopa, GM 0 832 0 832
Ramokgopa, KD 112 5,786 112 5,786
Segabutla, LO 0 1,204 0 1,204
Seoketsa, G 30,914 27,750 30,914 27,750
Swarts, AP 2,575 1,664 2,575 1,664
Theron, DP 0 5,260 0 5,260
Thipe, SS 0 3,037 0 3,037
Thipe, J 2,312 0 2,312 0
Thobejane, PTM 0 2,457 0 2,457
Total arrear consumer accounts 183,478 301,078 183,478 301,078

Information on arrear accounts for more than 90 days of Councillors during the financial year is not available.

33 Capital Commitments

Commitments in respect of capital expenditure (budgeted amounts next financial year):

Approved and contracted for 2,489,482,188 1,940,572,750 2,489,482,188 1,940,572,750

Infrastructure 2,015,657,358 1,489,453,000 2,015,657,358 1,489,453,000
Community 253,603,000 95,012,000 253,603,000 95,012,000
Other 147,150,000 124,847,750 147,150,000 124,847,750
Housing 73,071,830 231,260,000 73,071,830 231,260,000
Approved but not contracted for 672,282,990 375,267,250 672,282,990 375,267,250
Infrastructure 454,306,800 321,887,250 454,306,800 321,887,250
Community 22,045,400 30,900,000 22,045,400 30,900,000
Other 175,930,790 7,480,000 175,930,790 7,480,000
Investment property 0 2,000,000 0 2,000,000
Housing 20,000,000 13,000,000 20,000,000 13,000,000
3,161,765,178 2,315,840,000 3,161,765,178 2,315,840,000

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R

This expenditure will be financed from:

The Municipality’s own funding (external loans and/or 2,138,968,400 1,516,940,000 2,138,968,400 1,516,940,000
Capital Replacement Reserve)
• Capital Replacement Reserve 61,315,790 0
• Provincial grants 26,070,000 223,610,000 26,070,000 223,610,000
• Government housing 84,321,988 303,782,000 84,321,988 303,782,000
• PTIS 501,654,000 0
• MIG 288,935,000 234,108,000 288,935,000 234,108,000
• National Electrification Fund 60,500,000 37,400,000 60,500,000 37,400,000
3,161,765,178 2,315,840,000 2,598,795,388 2,315,840,000

34. Retirement Benefit Information

34.1 Pension Funds

Most employees of the Municipality are members of one of the following funds and those who are not, are 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.

Defined Contribution Plans (as classified by the relevant Fund)

34.1.1 The Tshwane Municipal Provident Fund is a defined

contribution plan and subject to the Pension Funds Act of
1956. The fund is not required to be actuarially valued.
No benefits can be unfunded and the Municipality there-
fore has no commitment in this regard. A total of 2 276
(18,83% ) of the Municipality’s employees are members
of this fund. The total contributions, which are in terms of
the rules of the plan (included in Employee remuneration,
note 23) amount to: 87,684,898 78,931,464 87,684,898 78,931,464

34.1.2 The Councillors of the City of Tshwane Metropoli-

tan Municipality are members of the Pension Fund for Mu-
nicipal Councillors, which is a defined contribution fund
and governed by the Pension Funds Act, 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 position. A total of109 (0,952%) of the Munici-
pality’s employees are members of this fund. The total
contributions, which are in terms of the rules of the plan
(included in Employee remuneration, note 23) amount to: 5,531,174 6,114,079 5,351,174 6,114,079

34.1.3 The National Fund for Municipal Workers is a

defined contribution plan and there are no statutory re-
quirements to do an actuarial valuation. The Municipality
has no commitment to finance any deficit. The latest vol-
untary actuarial valuation as at 30 June 2005 reported the
fund to be in a sound financial position. A total of 3 112
(27,12%) of the Municipality’s employees are members of
this fund. The total contributions, which are in terms of the
rules of the plan (included in Employee remuneration, note
23) amount to: 143,286,240 134,875,445 143,286,240 134,875,445

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R

34.1.4 The SALA Provident Fund is a defined contribution

plan. An actuarial valuation is carried out every three years.
The Municipality has no commitment to finance any defi-
cit. The actuarial valuation performed on 30 June 2004
reported the fund to be financially sound. A total of 94
(0,82%) of the Municipality’s employees are members of
this fund. The total contributions, which are in terms of the
rules of the plan (included in Employee remuneration, note
23) amount to: 990,670 941,353 990,670 941,353

34.1.5 The Samwu National Provident Fund is a defined

contribution fund. The fund is subject to actuarial valua-
tion. The fund is not underwritten. The actuarial valuation
performed on 30 June 2006 reported the fund to be in a
sound financial position. A total of 958 (8,35%) of the Mu-
nicipality’s employees are members of this fund. The total
contributions, which are in terms of the rules of the plan
(included in Employee remuneration, note 23) amount to: 24,682,623 22,739,165 24,682,623 22,739,165

34.1.6 The Germiston Municipal Retirement Fund is a

defined contribution plan and is governed by the Pension
Funds Act, 1956. Actuarial valuations are performed every
three years. The actuarial valuation performed on 30 June
2006 reported the fund to be in a sound financial position.
One (0,00%) of the Municipality’s employees is a member
of this fund. The total contributions, which are in terms of
the rules of the plan (included in Employee remuneration,
note 23) amount to – 63,513 163,310 63,513 163,310

34.1.7 The Meshawu National Local Authorities Retire-

ment Fund is a defined contribution plan (established on
1 August 1996) and is governed by the Pension Funds Act,
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%. A total of 60 (0,55%) of the Mu-
nicipality’s employees are members of this fund. The total
contributions, which are in terms of the rules of the plan
(included in Employee remuneration, note 23) amount to: 1,266,225 1,187,310 1,266,225 1,187,310

34.1.8 The Municipal Gratuity Fund is a defined contri-

bution plan which is governed by the Pension Funds Act,
1956. The Municipality has no commitment to meet un-
funded benefits. The actuarial valuation is carried out every
two years. The actuarial valuation done on 30 June 2004
showed the fund to be in a sound financial position. A total
of 1 408 (112,26%) of the Municipality’s employees are
members of this fund. The total contributions, which are
in terms of the rules of the plan (included in Employee re-
muneration, note 23) amount to: 50,573,279 47,420,095 50,573,279 47,420,095

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R

34.1.9 The Tshwane Municipal Pension Fund is a defined

benefit plan and is governed by the Pension Funds Act,
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. A total of 433 (3,77%) of the
Municipality’s employees are members of this fund. The to-
tal contributions, which are in terms of the rules of the plan
(included in Employee remuneration, note 23) amount to: 22,425,591 22,327,388 22,425,591 22,327,388

34.1.10 The SALA Pension Fund is a private fund. The

actuarial valuation has been 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 make
up about 5,4% of the total membership and therefore the
Municipality’s possible liability with regard to the unfund-
ed liability is calculated at R28 104 128. A total of 970
(8,45%) of the Municipality’s employees are members of
this fund. The total contributions, which are in terms of the
rules of the plan (included in Employee remuneration, note
23) amount to: 25,698,482 24,348,071 25,698,482 24,348,071

34.1.11 The Government Employees Pension Fund is a de-

fined benefit plan and is governed by the Government Em-
ployees Pension Fund Law, 1996, in terms of Proclamation
21 of 19 April 1996. Actuarial valuations are performed
every three years. The actuarial valuation performed on 31
March 2004 reported the fund to be in a sound finan-
cial position with a funding level of 96,5%. A total of 46
(1,78%) of the Municipality’s employees are members of
this fund. The total contributions, which are in terms of the
rules of the plan (included in Employee remuneration, note
23) amount to: 5,042,778 4,831,406 5,042,778 4,831,406

34.1.12 The Joint Municipal Pension Fund is a hybrid fund

(which has qualities of both a defined benefit and defined
contribution fund) and is governed by the Pension Funds
Act, 1956. Actuarial valuations are performed every three
years. The actuarial valuation performed on 31 Decem-
ber 2005 reported a funding level of 97,7%, resulting in a
shortfall of R44,237 million. The Municipality’s employees
make up about 1,78% of the total membership. The Mu-
nicipality’s possible liability with regard to unfunded ben-
efits is calculated to be R4 737 363. A total of 56 (0,483%)
of the Municipality’s employees are members of this fund.
The total contributions, which are in terms of the rules of
the plan (included in Employee remuneration, note 23)
amount to: 3,171,218 3,258,823 3,171,218 3,258,823

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R

34.1.13 The Municipal Employees Pension Fund is a de-

fined benefit plan and is governed by the Pension Funds
Act, 1956. The actuarial valuation performed on 28 Feb-
ruary 2005 reported the fund to be in a sound financial
position with a funding level of 106,9%. A total of 1 796
(15,64%) of the Municipality’s employees are members of
this fund. The total contributions, which are in terms of the
rules of the plan (included in Employee remuneration, note
23) amount to: 42,410,036 40,958,555 42,410,036 40,958,555

34.2 Medical Aid Funds

The former City Council of Pretoria and Town Council of
Centurion resolved to continue subsidising employees who
retire 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 applies to employees from these two former councils
who retire as members of the undermentioned medical
schemes. The total contributions are included in Employee
remuneration, note 23). 29,049,392 29,488,485 29,049,392 29,488,485

Keyhealth (on 1 January 2008 Global Health and Mu- 28,925,636 29,488,485 28,925,636 29,488,485
nimed became Keyhealth)
Bonitas 79,265 79,265
Hosmed 24,235 24,235
Medihelp 20,256 0 20,256 0

TOTAL: CONTRIBUTIONS (included in Employee 441,876,119 417,584,949 441,696,119 417,584,949

remuneration, note 23)

35 Contingent Liabilities

35.1 Housing Loans

Guarantees for housing loans to employees at financial 2,023,797 2,237,322 2,023,797 2,237,322
institutions

Since the implementation of the MFMA, no new guarantees have been issued. The liability will therefore decrease in future. The
property is used as collateral in cases of default on payments.

35.2 Indemnification
Value of investments ceded to the Workmen’s Compensa- 32,996,015 24,357,428 32,996,015 24,357,428
tion Commissioner in compliance with the requirements of
the Compensation for Occupational Injuries and Diseases
Act, 1993
The capitalised value as at 31 December 2006 as calcu- 32,996,015 27,392,475 32,996,015 27,392,475
lated by the Department of Labour amounted to:

Consistent with previous years, the amendment to the cession will be addressed in the following financial year:

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R

35.3 Insurance Claims

Pending claims against the Municipality in respect of 57,139,428 61,382,669 57,139,428 61,382,669
vehicle accidents and public liabilities which originated
before 30 June

The payment of claims against the City of Tshwane is provided for in the Self-insurance Reserve, which has a balance of R128,6 million.

35.4 Retirement of Redundant Employees

The retirement of redundant employees resulted in the following estimated long-term liabilities (these liabilities are budgeted for an-
nually):

*Pension fund contribution with regard to all employees 63,603,000 69,995,000 63,603,000 69,995,000
who received packages and who qualify for a monthly pen-
sion up to the approved age of retirement.
*Sick fund contribution payable to Pretmed with regard 46,102,000 44,593,000 46,102,000 44,593,000
to all employees who received packages and who are
deemed to be full members of the fund up to the approved
age of retirement.

35.5 Enterprise South Africa (section 21 company)

The company failed to register for VAT when it was founded in 1999. The company will be liable for output VAT of about R1 013 000,
excluding possible interest and penalties. The company will be able to claim input tax on its qualifying expenses, but the amount cannot
be determined at this time (the saving as a result of the input tax will not be significant).

36 In-Kind Donations and Assistance

The Municipality received the following in-kind donations and assistance:

Description:
Secondment of International Finance Adviser by National Treasury. These advisers were recalled with effect from the end of May 2008.

37 Public-Private Partnerships

The City of Tshwane had only one such partnership, ie Tswaing Electrical Project (Pty) Ltd. The liquidation of this company was started
during the 2004/05 financial year. The liquidation process was finalised during 2005/06.

38. Events after the Reporting Period

No material events occurred with respect to the 2006/07 financial year.

38.1 External loans

DBSA: Loan at 11,315% over 20 years 200,000,000 200,000,000
DBSA: Loan at 6,25% over 20 years 50,000,000 50,000,000
250,000,000 250,000,000

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R

38.2 Investments
Absa call investment at 11,55% 49,000,000 49,000,000
Investec call investment at 11,50% 49,000,000 49,000,000
Nedcor call investment at 11,65% 49,000,000 49,000,000
RMB call investment at 11,50% to 11,00% 49,000,000 49,000,000
Stanlib call investment in respect of Contingency 169,020,600 169,020,600
Insurance Fund
365,020,600 365,020,600

38.3 Short-term loan

Absa short-term loan at 13,85% 84,000,000 84,000,000

38.4 Roodeplaat/Temba Water Services Trust (RTWST)

Loans taken over from 1 July 2008 with the disestablish- 518,067,525 518,067,525
ment of the trust

39 Comparison with the Budget

The comparison of the actual financial performance with that budgeted is set out in Annexures E, F and G.

40 Directors’ Emoluments

40.1 Civirelo Water

Paid by company for services as directors 678,212 521,850

41 Related-Party Disclosures

41.1 Parent
The following municipal entities were under the control of the former/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.

41.1.1 Transactions between related parties

Civirelo Water’s parent is the City of Tshwane. Details and amounts of the transactions are as follows:
Gauteng Housing via City of Tshwane 975,800 0 975,800 0
Creditors 20,000 1,860,802 20,000 1,860,802
Water sales 0 40,976,503 0 40,976,503

Housing Company Tshwane’s parent is the City of Tshwane. Details and amounts of the transactions are as follows:
Sundry debtors (unpaid reimbursement budgeted 128,604 0 128,604 0
amounts)
Received electricity and water sales and rates and 490,482 562,558 490,482 562,558
taxes
Paid general expenses 117,439 156,444 117,439 156,444

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) 101,413,208 104,212,872 101,413,208 104,212,872
Beneficiary distribution 0 25,000,000 0 25,000,000
Interest – finance lease 3,283,804 4,718,102 3,283,804 4,718,102
Lease charges 704,630 475,727 704,630 475,727

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R

Roodeplaat Temba Water Services Trust’s parent is the City of Tshwane. Details and amounts of the transactions are as fol-
lows (continued):
Accounts receivable 14,120,965 12,149,142 14,120,965 12,149,142
Accounts payable 0 4,112,185 0 4,112,185
Deferred operating lease liabilities 2,078,122 1,873,039 2,078,122 1,873,039
Finance lease liabilities 25,976,434 28,113,989 25,976,434 28,113,989

Roodeplaat Temba Water Services Trust: Transactions with Magalies Water

Production overheads, accounts payable, accounts 0 34,383,373
receivable, etc

Roodeplaat Temba Water Services Trust: Transactions with Absa Corporate and Merchant Bank
Interest received 0 13,636,652
Interest paid 0 30,442,816
Bank charges 0 1,165,444
Capitalised interest/accrued interest 0 0
Long-term loan 0 234,079,776

Sandspruit Works Association Division: ODI Water Sales’ parent is the City of Tshwane. Details and amounts of the transac-
tions are as follows:
Outstanding payments in respect of water and 108,207 0 108,207 0
electricity
Bulk containers 5,007 0 5,007 0
DWAF subsidy paid to Sandspruit 11,937,780 0 11,937,780 0
Paid water 49,206,105 50,983,935 49,206,105 50,983,935
Sundry creditor (water) 2,353,438 0 2,353,438 0
Received water 34,675,380 20,382,060 34,675,380 20,382,060
Operating loss account 3,001,199 4,112,685 3,001,199 4,112,685

Trade Point Pretoria’s parent is the City of Tshwane. No Under liquida-tion Under liquidation Under liquidation Under liquidation

related-party transactions occurred.

The City of Tshwane is the parent of the Tshwane Centre Under liquidation Under liquidation

for Business Information and Support (Cenbis). No related-

party transactions occurred.

Enterprise South Africa’s parent is the City of Tshwane. No Under liquidation Under liquidation

related-party transactions occurred.

42 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 debtor creation 160,950,691 0 160,950,691

Training fees recovered amount only allocated to revenue 1,711,273 0 1,711,273
in 2006/07 but received in 2005/06
Write-back of the provision for obsolete stock 2,900,000 0 2,900,000
Total prior-year adjustment in respect of 2005/06 done 0 165,561,964 0 165,561,964
in 2006/07

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R

Expenditure of the 2006/07 financial year was restated in respect of:

Reclassification of operating leases to finance leases -99,848,247 -99,848,247
Write-back of interest on long-term debtors 35,821,377 35,821,377
Prepaid electricity sales in respect of 2006/07 posted in -9,872,540 -9,872,540
2007/08
Depreciation of leased assets 70,358,385 70,358,385
Interest on lease liabilities 37,082,548 37,082,548
Restatement of threshold assets (net of depreciation and -7,170,357 -7,170,357
reversal of expense to assets)
Municipal entities: Audit adjustments 3,776,566
Total prior-year adjustment in respect of 2006/07 26,371,166 30,147,732

Restatement of Statement of Financial Position

Accounting for lease assets (brought in for the first time in 261,396,192 204,827,481 261,396,192 204,827,481
2007/08, but restated 2006/07)

43 Operating Leases – Non-Cancellable

The amounts of minimum lease payments under non-cancellable operating leases in respect of photocopier equipment are as follows
for:

* The next year 5,497,215 4,870,119 5,497,215 4,870,119

* Years 2 through 5 combined 3,078,233 3,090,083 3,078,233 3,090,083
* Beyond five years 0 0 0 0
Total 8,575,448 7,960,202 8,575,448 7,960,202

44 Unauthorised, Irregular, Fruitless and Wasteful Expenditure

44.1 Unauthorised expenditure

Reconciliation of unauthorised expenditure:
Opening balance 0 0 0 0
Unauthorised expenditure in current year 51,175 0 51,175 0
Unauthorised expenditure awaiting authorisation 51,175 Not available 51,175 Not available

Incident 1: Unapproved travelling to Swaziland during November 2007.

Disciplinary steps: A report to obtain approval has been submitted to the City Manager.
Incident 2: Insurance claims not reported in good time and repudiated claims not compliant with procedural deadlines.
Disciplinary steps: Disciplinary actions taken against the relevant employee.

44.2 Fruitless and wasteful expenditure

Reconciliation of fruitless and wasteful expenditure:
Opening balance 0 0 0 0
Fruitless and wasteful expenditure in current year 1,242,964 0 1,242,964 0
Fruitless and wasteful expenditure awaiting condo- 1,242,964 Not available 1,242,964 Not available
nation/repayment

Incident 1: Theft of laptop which an employee failed to register as an insurance claim for R24 200.
Incident 2: Petty cash – late A Baduza for R756.

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 CHAPTER FOUR: Financial Statements

MUNICIPALITY GROUP
DESCRIPTION
2008 2007 2008 2007
R R R R

44.2 Fruitless and wasteful expenditure (continued)

Incident 3: Unauthorised trip to Namibia by Dr M Kruger in the Office of the City Manager.
Incident 4: Supply of fuel to contractor by Housing and Sustainable Human Settlement Development.

Disciplinary steps: Incident 1 – A departmental hearing was held on 27 June 2008. The employee signed admission of guilt and the
amount will be deducted from his salary.
Disciplinary steps: Incident 2 – Awaiting approval of a report sent to the Strategic Executive Director to write off this expenditure.
Disciplinary steps: Incident 3 – Awaiting authorisation.
Disciplinary steps: Incident 4 – Investigation underway.

44.3 Irregular expenditure

Reconciliation of irregular expenditure:
Opening balance 0 0 0 0
Fruitless and wasteful expenditure in current year 6,980 0 6,980 0
Irregular expenditure awaiting condonation 6,980 Not available 6,980 Not available

Incident: Cash shortage at Premos restaurant. Action/steps: Manager undertook in writing to replace cash shortage.

44.4 Unauthorised expenditure due to late approval of deviation report

General Assessments 212,146,820 0 212,146,820 0
Corporate and Shared Services 43,028,671 0 43,028,671 0
Economic Development 2,218,079 0 2,218,079 0
Agriculture and Environmental Management 202,865,365 0 202,865,365 0

Refer to Annexure F for reasons for deviations.

45 Financial Instruments (only for the Municipality)

45.1 Risks
In the course of the Municipality’s business operations it is exposed to interest rate, credit, liquid-
ity 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.

45.1.1 Interest rate risk
The Municipality manages 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 the date of Statement of Financial Position
are as follows:

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 CHAPTER FOUR: Financial Statements

Fixed rate Non-interest bearing

Amount Weighted Weighted Amount Weighted
Floating average average average
Description Total
rate effective period for period un-
interest which rate til maturity
rate is fixed

R R % Years R Years R

Year ended 30 June 2008

Assets
Investments 197,926,170 462,762,530 14.21 14.03 660,688,700

Long-term receivables: 0

Housing loans 59,092,140 13.87 30 59,092,140

Motor car loans 2,161,352 8.66 6 2,161,352

Loans to sport clubs 1,689,951 11.99 10 1,689,951

Study loans 13,930 13,930

Sale of land 65,779,894 11.09 5 65,779,894

Trade receivables:
Consumer 2,471,851,926 14.5 1 1,038,361,586 3,510,213,512

Other 482,784,175 482,784,175

Cash 43,235,693 43,235,693

Total: Financial assets 241,161,863 3,063,337,793 1,521,159,691 4,825,659,347

Liabilities
Interest-bearing borrowings 162,331,528 2,488,146,829 11 15.48 2,650,478,357

Interest rate swaps 227,866,133 20.51 17.79 227,866,133

Lease liabilities 261,396,192 261,396,192

Trade payables:
Creditors 1,643,714,421 0.08 1,643,714,421

Retention 96,661,285 1 96,661,285

Consumer deposits 267,978,963 0.08 267,978,963

Unspent grants and receipts 334,892,132 0.08 334,892,132

VAT 104,380,809 0.08 104,380,809

Bank overdrafts 106,407,370 106,407,370

Total: Financial liabilities 530,135,090 2,716,012,962 2,447,627,610 5,693,775,662

-288,973,227 347,324,831 -926,467,919 -868,116,315

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 67,613,043 13.87 30 67,613,043

Motor car loans 8,080,676 8.61 6 8,080,676

Loans to sport 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 Develop- 18,152,563 18,152,563

ment (Pty) Ltd

Consumer 1,932,654,004 10.5 1 1,213,886,365 3,146,540,369

Other 535,635,989 535,635,989

Cash 69,349,269 69,349,269

Total: Financial assets 494,322,665 2,624,944,168 1,767,690,528 4,886,957,361

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 CHAPTER FOUR: Financial Statements

Fixed rate Non-interest bearing

Amount Weighted Weighted Amount Weighted
Floating average average average
Description Total
rate effective period for period un-
interest which rate til maturity
rate is fixed

R R % Years R Years R
Liabilities
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

Lease liabilities 204,827,481 204,827,481

Trade payables:
Creditors 1,739,968,571 0.08 1,739,968,571

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 58,214,444 0.08 58,214,444

Bank overdrafts 46,002,138 46,002,138

Total:Financial liabilities 568,161,147 2,517,263,939 2,347,144,779 5,432,569,865

-73,838,482 107,680,229 -579,454,251 -545,612,504

45 Interest rate swaps

The Municipality has entered into interest rate swap contracts that entitle it to receive interest at
fixed rates/floating rates on notional principal amounts and that oblige it to pay interest at vari-
able rates/fixed rates on the same amounts. The interest rate swaps allow 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.

At the date of Statement of Financial Position the Municipality had entered into the following
interest rate swaps relating to specific Statement of Financial Position items:

Fixed Fair value Estimated fair

Date rate value gain/(loss)
% R R
17.55 125,000,000 9,994,859
30 June 1998
Year ended 30 June 2008 19.13 200,000,000 -15,660,192
19 January 1994
325,000,000 -5,665,333
17.55 125,000,000 10,374,232
30 June 1998
Year ended 30 June 2007 19.13 200,000,000 -20,136,827
19 January 1994
325,000,000 -9,762,595

pg 174 // City of Tshwane Annual Report 2008/2009

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 CHAPTER FOUR: Financial Statements

45.1.2 Currency risk

The Municipality undertakes certain transactions in foreign currencies. Therefore exposures to
exchange rate fluctuations might arise. However, the Municipality manages this risk by entering
into contracts where the risk is carried by the service provider.

45.1.3 Credit risk
Financial assets, which potentially subject the Municipality to the risk of non-performance by
counter-parties and thereby subject the Municipality to concentrations of credit risk, consist main-
ly of trade receivables. Credit risk is controlled through the application of a credit control policy
and monitoring procedures. Where necessary, the Municipality obtains appropriate deposits and
guarantees from debtors to mitigate risk.

The Municipality limits 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 deals with financial institutions with a short-term
credit rating of A+ and a long-term credit rating of AA- and higher at an international accredited
credit-rating agency. The Municipality’s exposure is monitored continuously and the aggregate
value of transactions concluded is spread among different types of approved investments and
institutions.

Credit risk with respect to trade receivables is limited due to the large number of customers
comprising the Municipality’s customer base and their dispersion across different industries and
geographic areas. The Municipality does not have any significant exposure to any individual cus-
tomer or counter-party. Therefore the Municipality does not consider there to be any significant
concentration of credit risk that had not been adequately provided for. Trade receivables are
presented net of the allowance for impairment.

The major concentrations of credit risk that arise from the Municipality’s receivables in relation
to customer classification are as follows:

30 June 2008 30 June 2007

% %
Consumer debtors:
Household 58.81 55.63
Industrial/commercial 16.70 22.13
National and provincial government 1.23 1.97
Other consumer debtors 11.16 5.73
Other debtors:
Housing 0.32 0.27
Government subsidies 0.31 0.19
RSC levies 5.03 6.43
Amounts paid in advance 0,00 1.38
Other 6.44 6.27
100,00 100,00

City of Tshwane Annual Report 2008/2009 // pg 175

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 CHAPTER FOUR: Financial Statements

45.1.4 Liquidity risk

The Municipality manages liquidity risk through proper control of working capital, capital expen-
diture and actual versus forecast cash flows. Adequate reserves, liquid resources and unused
borrowing facilities are also maintained. Capital expenditure, budgeted and forecast cash flow
calculations are funded as follows from the capital market:

30 June 2008 30 June 2009 30 June 2010
R R R
External funding: Capital expenditure 500,000,000 450,000,000 400,000,000

45.1.5 Market risk
The Municipality is 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 manages
this risk by passing any price increases through to consumers annually. An agreement has been
entered into with both Eskom and Rand Water that tariff increases occur only once a year.

45.2 Fair values
The Municipality’s financial instruments consist mainly of cash and cash equivalents, trade re-
ceivables, 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 are available for sale or held for trading.
The following methods and assumptions are used to determine the fair value of each class of
financial instrument:

Cash and cash equivalents
The carrying amount of cash and cash equivalents approximates fair value owing 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)
approximates fair value owing to the relatively short-term maturity of these financial assets.

Investments
Investments are carried at their original cost in the Statement of Financial Position, except where
the interest is received semi-annually and capitalised. The fair value of publicly traded instru-
ments is based on quoted market prices for those investments.

pg 176 // City of Tshwane Annual Report 2008/2009

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 CHAPTER FOUR: Financial Statements

Trade payables
The carrying amount of trade payables approximates fair value owing to the relatively short-term
maturity of this financial liability.

Interest-bearing borrowings
After initial recognition, interest-bearing borrowings are stated at amortised cost with any differ-
ence between cost and redemption value being recognised in the Statement of Financial Perfor-
mance over the period of the borrowing on an effective interest basis. The fair value of interest-
bearing borrowings with variable interest rates approximates their carrying amounts.

Derivatives (interest rate swaps)
Derivative financial instruments (interest rate swaps) are initially measured at fair value on the
contract date and are remeasured to fair value at subsequent reporting dates.

The fair value of financial liabilities at the date of Statement of Financial Position are as follows:

Fair value Carrying amount

Year ended
R R
30 June 2008
Liabilities
Interest rate swaps 200,000,000 200,000,000

30 June 2007
Liabilities
Interest rate swaps 325,000,000 325,000,000

45.3 Maturity profile
The maturity profiles of financial assets and liabilities at the date of Statement of Financial Posi-
tion are as follows:

City of Tshwane Annual Report 2008/2009 // pg 177

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 CHAPTER FOUR: Financial Statements

One year or One to five Over five Total

less years years
R R R R
Year ended 30 June 2008
Assets
Investments 235,135,271 354,801,402 70,752,027 660,688,700
Long-term receivables:
Housing loans 59,092,140 59,092,140
Motor car loans 2,161,952 2,161,952
Loans to sport clubs 1,689,951 1,689,951
Study loans 13,930 13,930
Sale of land 65,779,894 65,779,894
Trade receivables:
Consumer 3,309,178,466 201,035,046 3,510,213,512
Other 482,784,175 482,784,175
Cash 43,235,693 43,235,693
Total: Financial assets 4,070,347,535 623,778,294 131,534,118 4,825,659,947

Liabilities 2,678
Interest-bearing borrowings 40,635,123 353,495,679 2,284,213,688 ,344,490
Interest rate swaps 200,000,000 200,000,000
Lease liabilities 154,231,408 107,164,784 261,396,192
Trade payables:
Creditors 1,643,714,421 1,643,714,421
Retention 96,661,285 96,661,285
Consumer deposits 267,978,963 267,978,963
Unspent grants and receipts 334,892,132 334,892,132
VAT 104,380,809 104,380,809
Bank overdrafts 106,407,370 106,407,370
Total: Financial liabilities 2,748,901,511 660,660,463 2,284,213,688 5,693,775,662

Year ended 30 June 2007:

Assets
Investments 558,674,498 327,427,539 83,856,368 969,958,405
Long-term receivables:
Housing loans 67,613,043 67,613,043
Motor car loans 8,080,676 8,080,676
Loans to sport clubs 1,729,108 1,729,108
Study loans 15,611 15,611
Sale of land 69,882,328 69,882,328
Samrand Development (Pty) Ltd 18,152,563 18,152,563
Trade receivables:
Consumer 2,925,944,652 220,595,717 3,146,540,369

pg 178 // City of Tshwane Annual Report 2008/2009

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 CHAPTER FOUR: Financial Statements

One year or One to five Over five years Total

less years
R R R R
Other 535,635,989 535,635,989
Cash 69,349,269 69,349,269
Total: Financial assets 4,089,620,019 625,986,260 171,351,082 4,886,957,361

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
Lease liabilities 97,124,587 107,702,894 204,827,481
Trade payables:
Creditors 1,739,968,571 1,739,968,571
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 58,214,444 58,214,444
Bank overdrafts 46,002,138 46,002,138
Total: Financial liabilities 2,645,276,504 657,315,136 2,129,978,225 5,432,569,865

45.4 Hedging
Hedging is not applicable in the environment of the Municipality.

City of Tshwane Annual Report 2008/2009 // pg 179

Annual Report v2.indd 179 2009/06/04 09:21:47 AM

 ANNEXURE A
Schedule of External Loans as at 30 June 2008: Municipality

Annual Report v2.indd 180

pg 180
//
Opening balance Received during Redeemed during Closing balance Carrying value Other costs in
the year the year of property, plant accordance with
and equipment the MFMA
R R R R R R

EXTERNAL LOANS:
LOCAL REGISTERED STOCK:
Issued Loan number Interest rate (%) Redeemable
CHAPTER FOUR: Annexure A

1997 105 16.65 2014.06.30 95,097,640 427,261 95,524,901 115,302,720

1993 104 14.15 2008.09.30 40,000,000 629,329 40,629,329 49,041,371 Not
1984 43 16.25 2004.04.30 5,000 812 5,812 7,015 applicable

City of Tshwane Annual Report 2008/2009

1990 55 16.40 2011.06.30 14,723,150 0 52,530 14,670,620 17,708,078
1992 62 13.50 2011.06.30 20,986,956 427,166 21,414,122 25,847,779
1993 63 14,00 2011.06.30 35,902,136 1,014,364 36,916,500 44,559,825
1997 65 15.75 2011.06.30 50,000,000 50,000,000 60,352,180
2000 66 16.50 2011.06.30 59,000,000 59,000,000 71,215,572

Total Local 315,714,882 2,498,932 52,530 318,161,284 384,034,539

Registered Stock

TERM LOANS:

DBSA: Bullet portion 13.50 2018.04.30 50,000,000 1,724,111 51,724,111 62,433,257

DBSA: Floating rate Variable 2019.10.31 78,331,528 78,331,528 94,549,569
Nedbank loan B1 Variable 2008.05.28 30,000,000 30,000,000 0 0 Not
Absa loan B3 Variable 2011.06.30 84,000,000 84,000,000 101,391,662 applicable
INCA loan 17.15 2011.06.30 45,000,000 45,000,000 54,316,962
Future syndications Variable 2008.06.30 125,000,000 125,000,000 0 0
Absa arbitrage 19.13 2011.10.31 200,000,000 27,866,133 227,866,133 275,044,356

Total: Term Loans 612,331,528 29,590,244 155,000,000 486,921,772 587,735,805

2009/06/04 09:21:51 AM
Annual Report v2.indd 181
Opening balance Received during Redeemed during Closing balance Carrying value Other costs in
the year the year of property, plant accordance with
and equipment the MFMA
R R R R R R

ANNUITY LOANS:

DBSA 13.5 2018.04.30 240,870,346 7,982,838 9,545,225 239,307,959 288,855,138

DBSA local authorities 13.5 2012.12.31 17,884,911 3,256,607 14,628,304 17,657,001
DBSA (restructuring) 10.87 2018.12.31 252,880,861 16,926,776 235,954,085 284,806,866
INCA 11.66 2019.06.30 18,217,915 781,919 17,435,996 21,046,007 Not
INCA 9.52 2020.03.31 207,266,084 4,784,312 8,554,391 203,496,005 245,628,549 applicable
INCA 11.01 2020.06.30 46,999,710 1,745,330 45,254,380 54,624,009
DBSA 9.36 2020.12.31 266,039,516 15,100,632 250,938,884 302,894,172
INCA 10.92 2020.12.31 95,547,071 3,327,019 92,220,052 111,313,623
INCA 10.81 2021.06.30 77,688,941 2,544,987 75,143,954 90,702,028
DBSA 5.0 2021.12.31 97,296,783 7,157,290 90,139,493 108,802,297
DBSA 9.835 2021.12.31 389,281,730 20,006,820 369,274,910 445,730,914
Ivuzi 13.5 2021.12.31 196,575,189 7,107,777 189,467,412 228,695,426
DBSA 6.25 2028.06.30 50,000,000 50,000,000 60,352,180
DBSA 12.81 2028.06.30 200,000,000 200,000,000 241,408,718

Total: Annuity Loans 1,906,549,057 262,767,150 96,054,773 2,073,261,434 2,502,516,928

Total: External Loans 2,834,595,467 294,856,326 251,107,303 2,878,344,490 3,474,287,272

FINANCE LEASES:

Absa Variable * 0 14,157,827 641,760 13,516,067 13,418,190

AMASONDO Variable * 95,083,055 11,827,659 32,257,188 74,653,526 69,617,177
CITY OF TSHWANE Variable * 14,124,515 4,537,163 4,672,562 13,989,116 13,606,230
DATACENTRIX Variable * 2,827,464 20,433,200 5,582,330 17,678,334 16,998,761 Not
DEBIS FLEET MANAGEMENT Variable * 16,552,991 1,816,363 5,628,998 12,740,356 12,217,884 applicable
FLEET AFRICA Variable * 23,716,140 4,937,354 15,614,851 13,038,643 11,813,111
IMPERIAL Variable * 0 10,892,634 1,719,426 9,173,208 9,012,510

City of Tshwane Annual Report 2008/2009 //

STANNIC Variable * 853,324 97,819 463,673 487,470 392,313
STANDARD BANK Variable * 21,725,602 13,523,878 7,124,827 28,124,653 27,512,587
CHAPTER FOUR: Annexure A

VIAMAX Variable * 21,019,152 58,351,876 13,900,641 65,470,387 64,284,362

VUSWA Variable * 8,925,238 7,308,609 3,709,415 12,524,432 12,441,386

pg 181
Total: Finance Leases 204,827,481 147,884,382 91,315,671 261,396,192 251,314,511

* Variable linked to prime rate

2009/06/04 09:21:55 AM
 ANNEXURE A
Schedule of External Loans as at 30 June 2008: Group

Annual Report v2.indd 182

pg 182
Opening bal- Received Redeemed Closing bal- Carrying Other costs in accor-

//
ance during the during the ance value of prop- dance with the MFMA
year year erty, plant and
equipment
R R R R R R

EXTERNAL LOANS:
LOCAL REGISTERED STOCK:

Issued Loan number Interest rate Redeemable

(%)
1997 105 16.65 2014.06.30 95,097,640 427,261 95,524,901 115,302,720
CHAPTER FOUR: Annexure A

1993 104 14.15 2008.09.30 40,000,000 629,329 40,629,329 49,041,371 Not

1984 43 16.25 2004.04.30 5,000 812 5,812 7,015 applicable
1990 55 16.40 2011.06.30 14,723,150 0 52,530 14,670,620 17,708,078

City of Tshwane Annual Report 2008/2009

1992 62 13.50 2011.06.30 20,986,956 427,166 21,414,122 25,847,779
1993 63 14,00 2011.06.30 35,902,136 1,014,364 36,916,500 44,559,825
1997 65 15.75 2011.06.30 50,000,000 50,000,000 60,352,180
2000 66 16.50 2011.06.30 59,000,000 59,000,000 71,215,572

Total: Local Registered Stock 315,714,882 2,498,932 52,530 318,161,284 384,034,540

TERM LOANS:

DBSA: Bullet portion 13.50 2018.04.30 50,000,000 1,724,111 51,724,111 62,433,257

DBSA: Floating rate Variable 2019.10.31 78,331,528 78,331,528 94,549,569
DBSA (Roodeplaat/Temba Trust) 121,771,427 71,104 0 121,842,531 88,646,036
Nedbank loan B1 Variable 2008.05.28 30,000,000 30,000,000 0 0
Nedbank (Roodeplaat/Temba Trust) 160,929,108 495,890 0 161,424,998 117,314,541 Not
Absa loan B3 Variable 2011.06.30 84,000,000 84,000,000 101,391,662 applicable
Absa (Roodeplaat/Temba Trust) 234,079,777 720,219 0 234,799,996 171,703,445
National Housing Finance Corporation 14,00 4,977,583 492,640 4,484,943 4,484,943
Gauteng Partnership Fund 0,00 293,000 293,000 293,000
Rand Water (ODI) 0,00 2,553,373 2,553,373 0 0
INCA loan 17.15 2011.06.30 45,000,000 45,000,000 54,316,962
Future syndications Variable 2008.06.30 125,000,000 125,000,000 0 0
Absa arbitrage 19.13 2011.10.31 200,000,000 27,866,133 227,866,133 275,044,356

Total: Term Loans 1,136,935,796 30,877,457 158,046,013 1,009,767,240 970,177,771

2009/06/04 09:21:59 AM
 Opening bal- Received Redeemed Closing bal- Carrying Other costs in accor-

Annual Report v2.indd 183

ance during the during the ance value of prop- dance with the MFMA
year year erty, plant and
equipment
R R R R R R

ANNUITY LOANS:

DBSA 13.5 2018.04.30 240,870,346 7,982,838 9,545,225 239,307,959 288,855,138

DBSA local authorities 13.5 2012.12.31 17,884,911 3,256,607 14,628,304 17,657,001
DBSA (restructuring) 10.87 2018.12.31 252,880,861 16,926,776 235,954,085 284,806,866
INCA 11.66 2019.06.30 18,217,915 781,919 17,435,996 21,046,007 Not
INCA 9.52 2020.03.31 207,266,084 4,784,312 8,554,391 203,496,005 245,628,549 applicable
INCA 11.01 2020.06.30 46,999,710 1,745,330 45,254,380 54,624,009
DBSA 9.36 2020.12.31 266,039,516 15,100,632 250,938,884 302,894,172
INCA 10.92 2020.12.31 95,547,071 3,327,019 92,220,052 111,313,623
INCA 10.81 2021.06.30 77,688,941 2,544,987 75,143,954 90,702,028
DBSA 5.0 2021.12.31 97,296,783 0 7,157,290 90,139,493 108,802,297
DBSA 9.835 2021.12.31 389,281,730 0 20,006,820 369,274,910 445,730,914
Ivuzi 13.5 2021.12.31 196,575,189 0 7,107,777 189,467,412 228,695,426
DBSA 6.25 2028.06.30 0 50,000,000 0 50,000,000 60,352,180
DBSA 12.81 2028.06.30 0 200,000,000 0 200,000,000 241,408,718

Total: Annuity Loans 1,906,549,057 262,767,150 96,054,773 2,073,261,434 2,502,516,928

LEASE LIABILITY (Roodeplaat Temba Trust) 27,813,731 27,813,731 0 0

Total: External Loans 3,387,013,466 296,143,539 281,967,047 3,401,189,958 3,856,729,239

FINANCE LEASES:

Absa Variable * 0 14,157,827 641,760 13,516,067 13,418,190

AMASONDO Variable * 95,083,055 11,827,659 32,257,188 74,653,526 69,617,177
CITY OF TSHWANE Variable * 14,124,515 4,537,163 4,672,562 13,989,116 13,606,230 Not
DATACENTRIX Variable * 2,827,464 20,433,200 5,582,330 17,678,334 16,998,761 applicable
DEBIS FLEET MANAGEMENT Variable * 16,552,991 1,816,363 5,628,998 12,740,356 12,217,884
FLEET AFRICA Variable * 23,716,140 4,937,354 15,614,851 13,038,643 11,813,111
IMPERIAL Variable * 0 10,892,634 1,719,426 9,173,208 9,012,510
STANNIC Variable * 853,324 97,819 463,673 487,470 392,313

City of Tshwane Annual Report 2008/2009 //

STANDARD BANK Variable * 21,725,602 13,523,878 7,124,827 28,124,653 27,512,587
VIAMAX Variable * 21,019,152 58,351,876 13,900,641 65,470,387 64,284,362
CHAPTER FOUR: Annexure A

VUSWA 60 MONTHS Variable * 8,925,238 7,308,609 3,709,415 12,524,432 12,441,386

LEASE LIABILITY (Roodeplaat/TembaTrust) 27,813,731 300,259 3,866,241 24,247,749 13,763,816

pg 183
TOTAL: FINANCE LEASES 232,641,212 148,184,641 95,181,912 285,643,941 265,078,327

* Variable linked to prime rate

2009/06/04 09:22:02 AM
 ANNEXURE B
Analysis of Property, Plant and Equipment as at 30 June 2008: Municipality

Annual Report v2.indd 184

pg 184
Asset class Note Cost/revaluation Accumulated depreciation Carrying value

//
Opening balance Additions Disposals Transfers Closing balance Opening balance Additions Disposals, transfers Closing balance

and adjustments

R R R R R R R R R R
Infrastructure 9.1
Assets under construction 1,363,272,045 639,207,766 -948,660,148 1,053,819,663 0 0 0 0 1,053,819,663
Electricity 1,780,446,672 569,451,672 -9,684 0 2,349,888,660 614,846,210 42,351,358 -5,574 657,191,994 1,692,696,666
General 37,685,781 21,106,126 -117,812 0 58,674,095 19,990,726 4,882,395 -102,621 24,770,500 33,903,595
Roads 2,399,351,197 722,677,814 0 0 3,122,029,011 834,684,279 104,441,756 0 939,126,035 2,182,902,976
Water and sanitation 1,755,527,089 562,892,543 -17,592,091 0 2,300,827,541 530,931,917 63,807,480 -1,505,280 593,234,117 1,707,593,424

7,336,282,784 2,515,335,921 -17,719,587 -948,660,148 8,885,238,970 2,000,453,132 215,482,989 -1,613,475 2,214,322,646 6,670,916,324
CHAPTER FOUR: Annexure B

Community Assets 9.2

General 988,620,104 145,970,101 0 0 1,134,590,205 256,297,175 41,441,360 0 297,738,535 836,851,670

City of Tshwane Annual Report 2008/2009

Assets under construction 35,998,653 8,353,798 0 -29,901,839 14,450,612 0 0 0 0 14,450,612

1,024,618,757 154,323,899 0 -29,901,839 1,149,040,817 256,297,175 41,441,360 0 297,738,535 851,302,282

Heritage Assets 9.3

General 3,813,988 0 3,813,988 80,566 38,675 0 119,241 3,694,747

3,813,988 0 0 0 3,813,988 80,566 38,675 0 119,241 3,694,747

Housing 9.4
Housing assets 97,812,990 81,746,559 0 0 179,559,549 33,335,511 3,251,201 0 36,586,712 142,972,837
Assets under construction 137,152,916 6,035,290 0 -132,579,480 10,608,726 0 0 0 0 10,608,726

234,965,906 87,781,849 0 -132,579,480 190,168,275 33,335,511 3,251,201 0 36,586,712 153,581,563

Stock 9.5
Stock 1,142,732 0 0 0 1,142,732 123,324 0 0 123,324 1,019,408

1,142,732 0 0 0 1,142,732 123,324 0 0 123,324 1,019,408

Land 9.6
Land 1,140,397,933 1,104,434 0 0 1,141,502,367 141,506,169 0 0 141,506,169 999,996,198

1,140,397,933 1,104,434 0 0 1,141,502,367 141,506,169 0 0 141,506,169 999,996,198

2009/06/04 09:22:06 AM
Annual Report v2.indd 185
Asset class Note Cost/revaluation Accumulated depreciation Carrying value
Opening balance Additions Disposals Transfers Closing balance Opening balance Additions Disposals, transfers Closing balance

and adjustments

R R R R R R R R R R
Buildings 9.7
Buildings 701,317,311 77,379,357 -67,846 0 778,628,822 284,176,230 71,373,600 -9,091 355,540,739 423,088,083

701,317,311 77,379,357 -67,846 0 778,628,822 284,176,230 71,373,600 -9,091 355,540,739 423,088,083

Other 9.8
General 739,261,935 58,863,151 -16,324,792 0 781,800,294 399,728,220 114,431,743 -9,061,339 505,098,624 276,701,670
Assets under construction 69,145,450 64,752,621 0 -46,783,998 87,114,073 0 0 0 0 87,114,073

808,407,385 123,615,772 -16,324,792 -46,783,998 868,914,367 399,728,220 114,431,743 -9,061,339 505,098,624 363,815,743

Total Property, Plant 9.9

11,250,946,796 2,959,541,232 -34,112,225 -1,157,925,465 13,018,450,338 3,115,700,327 446,019,568 -10,683,905 3,551,035,990 9,467,414,348
and Equipment
Investment Property 9.10
Investment assets 44,792,509 0 0 0 44,792,509 32,841,744 1,497,613 0 34,339,357 10,453,152

44,792,509 0 0 0 44,792,509 32,841,744 1,497,613 0 34,339,357 10,453,152

Intangible Assets 9.11

Computer software 125,103,123 33,843,313 0 0 158,946,436 29,743,339 31,168,125 0 60,911,464 98,034,972

125,103,123 33,843,313 0 0 158,946,436 29,743,339 31,168,125 0 60,911,464 98,034,972

Total 9.12 11,420,842,428 2,993,384,545 -34,112,225 -1,157,925,465 13,222,189,283 3,178,285,410 478,685,306 -10,683,905 3,646,286,811 9,575,902,472

City of Tshwane Annual Report 2008/2009 //

CHAPTER FOUR: Annexure B

pg 185

2009/06/04 09:22:10 AM
 ANNEXURE B
Property, Plant and Equipment as at 30 June: Group

Annual Report v2.indd 186

pg 186
Asset class Note Cost/revaluation Accumulated depreciation Carrying value

//
Opening balance Additions Disposals Transfers Closing balance Opening balance Additions Disposals, transfers Closing balance
and adjustments

R R R R R R R R R R
Infrastructure 10.1
Assets under construction 1,363,272,045 639,207,766 -948,660,148 1,053,819,663 0 0 0 0 1,053,819,663
Electricity 1,780,446,672 569,451,672 -9,684 0 2,349,888,660 614,846,210 42,351,358 -5,574 657,191,994 1,692,696,666
General 37,685,781 21,106,126 -117,812 0 58,674,095 19,990,726 4,882,395 -102,621 24,770,500 33,903,595
Roads 2,399,351,197 722,677,814 0 0 3,122,029,011 834,684,279 104,441,756 0 939,126,035 2,182,902,976
Water and sanitation 1,755,527,089 562,892,543 -17,592,091 0 2,300,827,541 530,931,917 63,807,480 -1,505,280 593,234,117 1,707,593,424
Sandspruit Works Association 10,220,251 1,415,118 11,635,369 1,902,251 971,872 2,874,123 8,761,246
CHAPTER FOUR: Annexure B

7,346,503,035 2,516,751,039 -17,719,587 -948,660,148 8,896,874,339 2,002,355,383 216,454,861 -1,613,475 2,217,196,769 6,679,677,570

Community Assets 10.2

988,620,104 145,970,101 0 0 1,134,590,205 256,297,175 41,441,360 0 297,738,535 836,851,670

City of Tshwane Annual Report 2008/2009

General
Assets under construction 35,998,653 8,353,798 0 -29,901,839 14,450,612 0 0 0 0 14,450,612
1,024,618,757 154,323,899 0 -29,901,839 1,149,040,817 256,297,175 41,441,360 0 297,738,535 851,302,282

Heritage Assets 10.3

General 3,813,988 0 3,813,988 80,566 38,675 0 119,241 3,694,747
3,813,988 0 0 0 3,813,988 80,566 38,675 0 119,241 3,694,747

Housing 10.4
Housing assets 97,812,990 81,746,559 0 0 179,559,549 33,335,511 3,251,201 0 36,586,712 142,972,837
Assets under construction 137,152,916 6,035,290 0 -132,579,480 10,608,726 0 0 0 0 10,608,726
234,965,906 87,781,849 0 -132,579,480 190,168,275 33,335,511 3,251,201 0 36,586,712 153,581,563

Stock 10.5
Stock 1,142,732 0 0 0 1,142,732 123,324 0 0 123,324 1,019,408
1,142,732 0 0 0 1,142,732 123,324 0 0 123,324 1,019,408

Land 10.6
Land 1,140,397,933 1,104,434 0 0 1,141,502,367 141,506,169 0 0 141,506,169 999,996,198
1,140,397,933 1,104,434 0 0 1,141,502,367 141,506,169 0 0 141,506,169 999,996,198

2009/06/04 09:22:14 AM
Annual Report v2.indd 187
Asset class Note Cost/revaluation Accumulated depreciation Carrying value
Opening balance Additions Disposals Transfers Closing balance Opening balance Additions Disposals, transfers Closing balance
and adjustments

Buildings 10.7
Buildings 701,317,311 77,379,357 -67,846 0 778,628,822 284,176,230 71,373,600 -9,091 355,540,739 423,088,083
Sandspruit: land and buildings 6,137,715 1,345,493 7,483,208 788,933 172,542 961,475 6,521,733
707,455,026 78,724,850 -67,846 0 786,112,030 284,965,163 71,546,142 -9,091 356,502,214 429,609,816

Other 10.8
General 739,261,935 58,863,151 -16,324,792 0 781,800,294 399,728,220 114,431,743 -9,061,339 505,098,624 276,701,670
Assets under construction 69,145,450 64,752,621 0 -46,783,998 87,114,073 0 0 0 0 87,114,073
Cenbis: furniture and equipment 580,824 580,824 550,463 550,463 30,361
Housing Company: equipment and furniture 289,720 83,510 30,963 404,193 213,472 10,968 224,440 179,753
Sandspruit: other equipment 6,862,896 1,798,280 8,661,176 4,493,920 1,260,137 5,754,057 2,907,119
Civirelo: office, IT equipment and software 85,940 50,573 -57,900 78,613 70,100 4,863 -43,425 31,538 47,075
Roodeplaat Temba: work in progress 469,731,512 5,310,960 475,042,472 60,441,242 35,820,093 1,117,115 97,378,450 377,664,022
1,285,958,277 130,859,095 -16,324,792 -46,810,935 1,353,681,645 465,497,417 151,527,804 -7,987,649 609,037,572 744,644,073

Total Property, Plant and Equipment 10.9 11,744,855,654 2,969,545,166 -34,112,225 -1,157,952,402 13,522,336,193 3,184,160,708 484,260,043 -9,610,215 3,658,810,536 9,863,525,657

Investment Property 10.10

Investment assets 44,792,509 0 0 0 44,792,509 32,841,744 1,497,613 0 34,339,357 10,453,152
Housing Company: investment property 7,490,657 2,509,343 10,000,000 0 0 10,000,000
52,283,166 0 0 2,509,343 54,792,509 32,841,744 1,497,613 0 34,339,357 20,453,152

Intangible Assets 10.11

Computer software 125,103,123 33,843,313 0 0 158,946,436 29,743,339 31,168,125 0 60,911,464 98,034,972
Civirelo: intangible assets 3,240 57,900 61,140 14,475 43,425 57,900 3,240
125,103,123 33,846,553 0 57,900 159,007,576 29,743,339 31,182,600 43,425 60,969,364 98,038,212

Total 10.12 11,922,241,943 3,003,391,719 -34,112,225 -1,155,385,159 13,736,136,278 3,246,745,791 516,940,256 -9,566,790 3,754,119,257 9,982,017,020

City of Tshwane Annual Report 2008/2009 //

CHAPTER FOUR: Annexure B

pg 187

2009/06/04 09:22:18 AM
 ANNEXURE C
Segmental Analysis of Property, Plant and Equipment as at 30 June 2008: Municipality

Annual Report v2.indd 188

pg 188
//
Service Cost/revaluation Accumulated depreciation Carrying
value
Opening bal- Additions Disposals Transfers and Closing bal- Opening bal- Additions Disposals, Closing bal-
ance adjustments ance ance transfers ance
and adjust-
ments
R R R R R R R R R R

Office of the Executive Mayor and Municpal Manager 455,797,859 86,117,737 -86,351 -41,254,266 500,574,979 85,639,522 -45,489 -45,489 194,305,204 306,269,775

Financial Services 54,732,738 2,593,153 0 -548,872 56,777,019 8,012,207 0 0 31,274,307 25,502,712

General Assessments 22,130,746 4,726,547 0 0 26,857,293 1,829,265 0 0 16,158,026 10,699,267

Corporate and Shared Servcies 1,373,658,282 10,392,280 -64,973 0 1,383,985,589 31,469,493 -33,034 -33,034 248,818,045 1,135,167,544
CHAPTER FOUR: Annexure C

Community Safety 299,541,656 45,531,662 -73,900 -17,244,269 327,755,149 27,516,693 -63,388 -63,388 166,178,075 161,577,074

Economic Development 251,928,132 25,152,027 -147,182 -3,217,329 273,715,648 8,404,331 -84,914 -84,914 121,127,964 152,587,684

City of Tshwane Annual Report 2008/2009

Health and Social Development 116,342,037 11,075,180 -1,816,628 -820,863 124,779,726 8,132,364 -613,858 -613,858 35,716,771 89,062,955

City Planning and Regional Services 112,913,791 10,359,799 -36,732 -81,852,059 41,384,799 4,993,176 -26,256 -26,256 17,226,737 24,158,062

Sport and Recreation 385,929,629 102,039,944 -165,800 -25,755,660 462,048,113 107,442,485 18,123,958 -23,703 125,542,740 336,505,373

Housing and Sustainable Human Settlement Development 1,318,384,622 606,246,187 0 -348,015,905 1,576,614,904 178,181,331 25,447,638 0 203,628,969 1,372,985,935

Agriculture and Environmental Management 342,062,649 57,873,771 -118,560 -13,135,174 386,682,686 104,475,008 20,209,862 -50,848 124,634,022 262,048,664

Public Works: 6,687,420,282 2,031,276,259 -31,602,098 -626,081,067 8,061,013,376 2,132,511,570 238,906,798 -9,742,414 2,361,675,954 5,699,337,422

Transport 0 18,603,738 0 -24,494,547 -5,890,809 0 0 0 0 -5,890,809

Roads and Stormwater 2,462,645,700 758,894,017 -1,039,218 -240,462,413 2,980,038,086 854,089,403 100,412,700 -493,209 954,008,894 2,026,029,192

Water and Sanitation 1,971,903,062 561,122,508 -18,877,100 -85,780,077 2,428,368,393 562,755,334 77,400,494 -2,037,175 638,118,653 1,790,249,740

Electricity 2,252,871,520 692,655,996 -11,685,780 -275,344,030 2,658,497,706 715,666,833 61,093,604 -7,212,030 769,548,407 1,888,949,299

Total 11,420,842,428 2,993,384,545 -34,112,225 -1,157,925,465 13,222,189,283 3,178,285,410 478,685,306 -10,683,905 3,646,286,811 9,575,902,472

2009/06/04 09:22:22 AM
Annual Report v2.indd 189
ANNEXURE C
Segmental Analysis of Property, Plant and Equipment as at 30 June 2008: Group

Service Cost/revaluation Accumulated depreciation Carrying

value
Opening bal- Additions Disposals Transfers and Closing bal- Opening bal- Additions Disposals, Closing bal-
ance adjustments ance ance transfers and ance
adjustments
R R R R R R R R R R

Office of the Executive Mayor and City Manager 455,797,859 86,117,737 -86,351 -41,254,266 500,574,979 108,711,171 85,639,522 -45,489 194,305,204 306,269,775

Financial Services 54,732,738 2,593,153 0 -548,872 56,777,019 23,262,100 8,012,207 0 31,274,307 25,502,712

General Assessments 22,130,746 4,726,547 0 0 26,857,293 14,328,761 1,829,265 0 16,158,026 10,699,267

Corporate and Shared Services 1,373,658,282 10,392,280 -64,973 0 1,383,985,589 217,381,586 31,469,493 -33,034 248,818,045 1,135,167,544

Community Safety 299,541,656 45,531,662 -73,900 -17,244,269 327,755,149 138,724,770 27,516,693 -63,388 166,178,075 161,577,074

Economic Development 252,508,956 25,152,027 -147,182 -3,217,329 274,296,472 113,359,010 8,404,331 -84,914 121,678,427 152,618,045

Health and Social Development 116,342,037 11,075,180 -1,816,628 -820,863 124,779,726 28,198,265 8,132,364 -613,858 35,716,771 89,062,955

City Planning and Regional Services 112,913,791 10,359,799 -36,732 -81,852,059 41,384,799 12,259,817 4,993,176 -26,256 17,226,737 24,158,062

Sport and Recreation 385,929,629 102,039,944 -165,800 -25,755,660 462,048,113 107,442,485 18,123,958 -23,703 125,542,740 336,505,373

Housing and Sustainable Human Settlement Development 1,326,164,999 606,329,697 0 -345,475,599 1,587,019,097 178,394,803 25,458,606 0 203,853,409 1,383,165,688

Agriculture and Environmental Management 342,062,649 57,873,771 -118,560 -13,135,174 386,682,686 104,475,008 20,209,862 -50,848 124,634,022 262,048,664

Public Works: 7,180,458,596 2,041,199,923 -31,602,098 -626,081,067 8,563,975,354 2,200,208,016 277,150,780 -8,625,299 2,468,733,497 6,095,241,857

Transport, 0 18,603,738 0 -24,494,547 -5,890,809 0 0 0 0 -5,890,809

City of Tshwane Annual Report 2008/2009 //

Roads and Stormwater 2,462,645,700 758,894,017 -1,039,218 -240,462,413 2,980,038,086 854,089,403 100,412,700 -493,209 954,008,894 2,026,029,192
CHAPTER FOUR: Annexure C

Water and Sanitation 2,464,941,376 571,046,172 -18,877,100 -85,780,077 2,931,330,371 630,451,780 115,644,476 -920,060 745,176,196 2,186,154,175

Electricity 2,252,871,520 692,655,996 -11,685,780 -275,344,030 2,658,497,706 715,666,833 61,093,604 -7,212,030 769,548,407 1,888,949,299

pg 189
Total 11,922,241,943 3,003,391,719 -34,112,225 -1,155,385,159 13,736,136,278 3,246,745,791 516,940,256 -9,566,790 3,754,119,257 9,982,017,020

2009/06/04 09:22:25 AM
 ANNEXURE D
Consolidated Segmental Statement of Performance for the year ended 30 June 2008

Annual Report v2.indd 190

pg 190

SERVICE Municipality Group

//
2008 2007 2008 2007
Actual Actual Surplus/ Adjustment Actual Actual ex- Surplus/ Actual Actual ex- Surplus/ Adjustment Actual Actual Surplus/
income expenditure (deficit) budget income penditure (deficit) income penditure (deficit) budget income expenditure (deficit)
surplus/ surplus/
(deficit) (deficit)
R R R R R R R R R R R R R
Office of the Executive 11,033,805 221,747,407 -210,713,602 -241,647,049 1,347,372 409,934,727 -408,587,355 11,033,805 221,747,407 -210,713,602 -241,647,049 1,347,372 409,934,727 -408,587,355

Mayor and City Man-

ager
CHAPTER FOUR: Annexure D

Corporate and Shared 44,694,749 838,438,644 -793,743,895 -742,596,826 43,099,583 556,704,160 -513,604,577 44,694,749 838,438,644 -793,743,895 -742,596,826 43,099,583 556,704,160 -513,604,577

Services

City of Tshwane Annual Report 2008/2009

Economic Development 144,541,237 260,487,869 -115,946,632 -104,925,277 128,427,937 241,145,450 -112,717,513 144,541,237 260,487,869 -115,946,632 -104,925,277 128,431,587 241,175,708 -112,744,121

Financial Services 63,067,055 409,853,892 -346,786,837 -421,112,961 70,333,210 351,837,200 -281,503,990 63,067,055 409,853,890 -346,786,835 -421,112,961 70,333,210 351,837,200 -281,503,990

General Assessments 3,777,582,087 491,791,096 3,285,790,991 3,446,309,574 3,229,275,213 556,931,260 2,672,343,953 3,777,582,087 491,791,096 3,285,790,991 3,446,309,574 3,229,275,213 556,931,260 2,672,343,953

Housing and Sustain- 200,527,837 289,419,196 -88,891,359 -63,398,837 139,775,647 285,843,419 -146,067,772 200,527,837 289,419,196 -88,891,359 -63,398,837 139,775,647 285,843,419 -146,067,772

able Human Settlement

Development

Sport and Recreation 39,610,992 152,738,147 -113,127,155 -130,108,622 40,902,547 133,585,868 -92,683,321 39,610,992 152,738,147 -113,127,155 -130,108,622 40,902,547 133,585,868 -92,683,321

Community Safety 146,452,724 715,137,886 -568,685,162 -584,662,583 124,717,679 576,230,416 -451,512,737 146,452,724 715,137,886 -568,685,162 -584,662,583 124,717,679 576,230,416 -451,512,737

Agriculture and Environ- 338,760,687 862,876,215 -524,115,528 -290,050,273 303,466,585 692,879,558 -389,412,973 338,760,687 862,876,215 -524,115,528 -290,050,273 303,466,585 692,879,558 -389,412,973

mental Management

2009/06/04 09:22:29 AM
Annual Report v2.indd 191
SERVICE Municipality Group

2008 2007 2008 2007

Actual Actual Surplus/ Adjustment Actual Actual ex- Surplus/ Actual Actual ex- Surplus/ Adjustment Actual Actual Surplus/
income expenditure (deficit) budget income penditure (deficit) income penditure (deficit) budget income expenditure (deficit)
surplus/ surplus/
(deficit) (deficit)
R R R R R R R R R R R R R
Health and Social 67,882,436 241,085,729 -173,203,293 -191,723,260 53,941,713 208,511,894 -154,570,181 84,380,608 267,178,702 -182,798,094 -191,723,260 68,272,948 226,180,002 -157,907,054

Development

City Planning and 68,470,615 134,583,253 -66,112,638 -75,479,150 67,110,477 107,579,422 -40,468,945 68,470,615 134,583,253 -66,112,638 -75,479,150 67,110,477 107,579,422 -40,468,945

Regional Services

Public Works: 5,218,169,612 4,645,191,311 572,978,301 295,457,155 4,399,084,192 4,167,374,282 279,785,003 5,482,920,445 4,943,963,797 538,956,648 295,457,155 4,573,986,564 4,408,697,418 165,289,146

Roads & Stormwater 201,376,207 487,490,999 -286,114,792 -327,844,653 59,903,280 391,522,056 -331,618,776 201,376,207 487,490,999 -286,114,792 -327,844,653 59,903,280 391,522,056 -331,618,776

Transport 54,603,935 95,655,404 -41,051,469 -10,745,918 28,132,639 76,207,732 54,603,935 95,655,404 -41,051,469 -10,745,918 28,132,639 76,207,732 -48,075,093

Electricity 3,191,679,242 2,729,798,526 461,880,716 342,542,330 2,789,662,278 2,449,088,349 340,573,929 3,191,679,242 2,729,798,526 461,880,716 342,542,330 2,789,662,278 2,449,088,349 340,573,929

Water and Sanitation 1,770,510,228 1,332,246,382 438,263,846 291,505,396 1,521,385,995 1,250,556,145 270,829,850 2,035,261,061 1,631,018,868 404,242,193 291,505,396 1,696,288,367 1,491,879,281 204,409,086

Surplus for the year 10,120,793,836 9,263,350,645 857,443,191 896,061,891 8,601,482,155 8,288,557,656 312,924,499 10,402,042,841 9,588,216,102 813,826,739 896,061,891 8,790,719,412 8,547,579,158 243,140,254

City of Tshwane Annual Report 2008/2009 //

CHAPTER FOUR: Annexure D

pg 191

2009/06/04 09:22:33 AM
 ANNEXURE E
Actual Operating Revenue and Expenditure per type in contrast to the Budget for the year ended 30 June 2008

Annual Report v2.indd 192

pg 192
//
Description Actual Budget Variance Variance Explanation of significant variances (greater than 10%) in con-
R R R % trast to the budget

Revenue

Property rates 2,180,952,393 2,007,541,000 173,411,393 8.64

Service charges 4,925,025,127 4,769,479,797 155,545,330 3.26
Regional Service Levies – turnover 0 20,000,000 -20,000,000 -100,00 The RSC levies received were appropriated to sundry debtors created in the previous finan-
cial year as levies were abolished.
Rental of facilities and equipment 90,860,818 74,495,934 16,364,884 21.97 More bus rentals than anticipated were realised. “Sundry properties” was overcollected due
to premises taken over from other departments. Final payments received from RTWST for
CHAPTER FOUR: Annexure E

the rental payable on 30 June 2008 in respect of the Roodeplaat and Temba properties
according to the lease agreement.

City of Tshwane Annual Report 2008/2009

Interest earned – external investments 158,014,824 113,303,229 44,711,595 39.46 More favourable interest rates realised better investment income compared to the conser-
vatively planned budget.
Interest earned – outstanding debtors 194,352,139 160,432,604 33,919,535 21.14 Growth in the collection of instalment payment plans for debtors who arrange to pay their
arrears in monthly instalments.
Fines (traffic fines) 38,302,819 49,433,869 -11,131,050 -22.52 Factors that contributed were the culture of non-payment, insufficient paypoints, the lack
of capacity of magistrates to administer traffic fines and the unsuccessful prosecution of
cases. Interventions include sting operations by the Tracings Unit, agreement with the SA
Post Office to receive payments countrywide and the implementation of the Administrative
Adjudication of the Road Traffic Offences Act, 1998 (Act 46 of 1998), as amended.
Licences and permits 29,498,520 23,049,903 6,448,617 27.98 More income was received than anticipated in the conservatively planned budget.
Government grants and subsidies 1,919,501,081 2,201,857,795 -282,356,714 -12.82 The restructuring grant funding increased by R50 million during the adjustments budget,
and the implementation of projects will roll forward to 2008/09. The allocation for the
2010 FIFA World Cup™ is to be used during 2008/09 owing to the implementation of the
project continuing to September 2008. The allocation of PTIS funds was not fully used, as
the project implementation was delayed and will roll forward to 2008/09.
Other income 691,502,194 619,483,107 72,019,087 11.63 Problems relating to the billing of waste services led to income not being collected. The
Finance Department was consultated to look at possible ways to ensure that all services
are billed. The undercollection on land sales was as a result of the moratorium on the sale
of land.
Public contributions 165,369,329 155,000,000 10,369,329 6.69

2009/06/04 09:22:37 AM
Annual Report v2.indd 193
Description Actual Budget Variance Variance Explanation of significant variances (greater than 10%) in con-
R R R % trast to the budget
Gains on the disposal of property, plant and 4,936,900 40,352,144 -35,415,244 -87.77 Uncertain income. Is dependent on asset cleanup and the disposal of obsolete assets.
equipment

Gain: change in the fair value of livestock 3,726,697 0 3,726,697 100,00 The revaluation of livestock at year end culminated in a gain.
Total revenue 10,402,042,841 10,234,429,382 167,613,459 1.64

Expenditure

Employee-related costs 2,665,393,656 2,729,726,831 -64,333,175 (2.36)

Remuneration of Councillors 44,201,359 47,914,093 -3,712,734 (7.75)
Bad debts: contribution 230,254,392 19,920,755 210,333,637 1055.85 A conservative amount was budgeted. The calculation of the provision is processed at
year end.
Bad debts: written off 100,732,978 109,100,000 -8,367,022 (7.67)
Collection costs 72,224,153 63,178,651 9,045,502 14.32 The service provider was not appointed. Negotiations with the City of Tshwane Legal Ser-
vices are in progress.
Depreciation 581,372,889 728,387,673 -147,014,784 (20.18) The increase was due to the asset purification process and the accounting for finance
leases.
Interest paid on external borrowings 431,881,950 382,138,723 49,743,227 13.02 The increase was due to the accounting for leases at year end.
Bulk purchases 2,214,193,693 2,232,955,941 -18,762,248 (0.84)
Repairs and maintenance 897,807,296 749,310,022 26,932,403 3.59 More actual repairs and maintenance work was required than anticipated during the bud-
get process.
Grants and subsidies paid 11,584,679 12,285,250 -700,571 (5.70)
Loss on the disposal of property, plant and equip- 23,423,391 9,900 23,413,491 236499.91 Uncertain expenditure. Only a nominal amount was budgeted.
ment
General expenses – other 2,315,145,666 2,010,014,816 305,130,850 15.18

City of Tshwane Annual Report 2008/2009 //

Total expenditure 9,588,216,102 9,084,942,655 503,273,447 5.54
CHAPTER FOUR: Annexure E

Net Surplus for the Year 813,826,739 1,149,486,727 -335,659,988 (29.20)

pg 193

2009/06/04 09:22:41 AM
 ANNEXURE F
Segmental: Actual Operating Revenue and Expenditure per Strategic Unit in contrast to the Budget for the year ended 30 June 2008

Annual Report v2.indd 194

pg 194
//
Description Actual Budget Variance Variance Explanation of significant variances (greater than 10%) in contrast
to the budget
R R R %
Revenue

Office of the Executive Mayor and City 11,033,805 61,820,434 -50,786,629 (82.15) Soccer 2010 stadium rebuilding funds were not spent as the project implementation begins from
Manager July to September 2008.
Corporate and Shared Services 44,694,749 52,813,147 -8,118,398 (15.37) A major contributor was the loss on the sale of assets.
Economic Development 144,541,237 153,344,513 -8,803,276 (5.74)
Financial Services 63,067,055 63,931,335 -864,280 (1.35)
CHAPTER FOUR: Annexure F

General Assessments 3,777,582,087 3,725,953,850 51,628,237 1.39

Housing and Sustainable Human Settlement 200,527,837 258,475,315 -57,947,478 (22.42) Confirmation was not received from the Province to spend all the funds allocated in respect of

City of Tshwane Annual Report 2008/2009

Development top structure grants.
Sport and Recreation 39,610,992 40,291,654 -680,662 (1.69)
Community Safety 146,452,724 143,420,971 3,031,753 2.11
Agriculture and Environment Management 338,760,687 369,960,577 -31,199,890 (8.43)
Health and Social Development 84,380,608 64,782,576 19,598,032 30.25 Revenue of the municipal entity was included, but not budgeted for on consolidation.
City Planning and Regional Services 68,470,615 63,213,490 5,257,125 8.32
Public Works: 5,482,920,445 5,236,421,520 246,498,925 4.71
201,376,207 243,647,639 -42,271,432 (17.35) PTIS/RG funds were not fully recognised owing to underspending on project implementation. The
Roads and Stormwater unspent balance was carried forward to 2008/09.
54,603,935 106,430,891 -51,826,956 (48.70) PTIS/RG funds were not fully recognised owing to underspending on project implementation. The
Transport
unspent balance was carried forward to 2008/09.
3,191,679,242 3,172,166,208 19,513,034 0.62
Electricity
Water and Sanitation 2,035,261,061 1,714,176,782 321,084,279 18.73 Revenue of municipal entities was included, but not budgeted for on consolidation.

Total revenue 10,402,042,841 10,234,429,382 167,613,459 1.64

2009/06/04 09:22:44 AM
Annual Report v2.indd 195
Description Actual Budget Variance Variance Explanation of significant variances (greater than 10%) in contrast
to the budget
R R R %
EXPENDITURE

Office of the Executive Mayor and City 221,747,407 511,094,727 -289,347,320 (56.61) The soccer 2010 stadium rebuilding project implementation begins from July to September
Manager 2008.
Corporate and Shared Services 838,438,644 592,964,271 245,474,373 41.40 Restatement on depreciation owing to the purification process on the fixed asset register
Economic Development 260,487,869 258,269,790 2,218,079 0.86
Financial Services 409,853,890 485,044,296 -75,190,406 (15.50) Owing to effective negotiating and structuring of the insurance portfolio, as well as the imple-
mentation of the Risk Management and Insurance Strategy, a major saving realised on the insur-
ance premium.
General Assessments 491,791,096 279,644,276 212,146,820 75.86 The budget allocation for interest paid was moved to individual departments and no budget was
allocated to this vote. Depreciation – asset purification could only be done on this vote owing
to a lack of information. Accounting for leases was done in total on this vote – no budget was
provided for the accounting for leases. An additional provision of R125 million was made for
RSC levies bad debt.
Housing and Sustainable Human Settlement 289,419,196 321,874,152 -32,454,956 (10.08) Restatement on depreciation owing to the purification process on the fixed asset register
Development
Sport and Recreation 152,738,147 170,400,276 -17,662,129 (10.37) Restatement on depreciation owing to the purification process on the fixed asset register
Community Safety 715,137,886 728,083,554 -12,945,668 (1.78)
Agriculture and Environment Management 862,876,215 660,010,850 202,865,365 30.74 Expansion of services rendered, increase in fuel prices, and higher maintenance costs on ve-
hicles, machines, buildings and sites
Health and Social Development 267,178,702 256,505,836 10,672,866 4.16
City Planning and Regional Services 134,583,253 133,511,097 1,072,156 0.80
Public Works: 4,943,963,797 4,940,964,365 2,999,432 0.06
Roads and Stormwater 487,490,999 571,492,292 -84,001,293 (14.70) Restatement on depreciation owing to the purification process on the fixed asset register
95,655,404 117,176,809 -21,521,405 (18.37) The 2010 soccer-related expenditure did not progress as planned. The implementation is to roll
Transport

City of Tshwane Annual Report 2008/2009 //

over to 2008/09.
2,729,798,526 2,829,623,878 -99,825,352 (3.53)
Electricity
CHAPTER FOUR: Annexure F

Water and Sanitation 1,631,018,868 1,422,671,386 208,347,482 14.64 Restatement on depreciation owing to the purification process on the fixed asset register

pg 195
Net expenditure 9,588,216,102 9,338,367,490 249,848,612
NET SURPLUS FOR THE YEAR 813,826,739 896,061,892 -82,235,153 (9.18)

2009/06/04 09:22:48 AM
 ANNEXURE G
Actual Capital Expenditure in contract to the Budget for the year ended 30 June 2008: Municipality Only

Annual Report v2.indd 196

pg 196
//
Service Actual Budget Variance Variance Explanation of significant variances (greater than 5%) in contrast to
the budget

R R R %
Corporate and Shared Services 56,064,009 78,969,801 22,905,792 29.01 Several IT tenders were not approved, and there were insufficient funds for the establishment of the
call centre.
Economic Development 22,544,229 40,473,750 17,929,521 44.30 The approval of the bus project was delayed. There was a delay in the upgrading of buildings
owing to the contractor being in breach of contract. The savings on projects were due to lower
tender amounts.
Financial Services 11,131,247 11,900,000 768,753 6.46 The tender process started late in the financial year because the upgrading of the paypoint and
insurance replacement project is dependent on claims.
CHAPTER FOUR: Annexure G

Housing and Sustainable Human Settle- 186,983,791 233,234,988 46,251,197 19.83 Projects were not implemented because funds were not approved/received from the Province and
ment Development the upgrading of the Schubart Park and Kruger Park blocks was not implemented.

City of Tshwane Annual Report 2008/2009

Sport and Recreation 66,666,245 73,998,000 7,331,755 9.91 The Nellmapius Community Centre project could not be implemented. This project will be repriori-
tised in future years.
Community Safety 21,544,824 35,150,000 13,605,176 38.71 The purchase of vehicles was delayed.
Agriculture and Environmental Manage- 42,936,806 46,850,000 3,913,194 8.35 Dispute resolution regarding the outsourcing of refuse removal resulted in delays.
ment
Health and Social Development 6,272,719 6,279,000 6,281 0.10
City Planning and Regional Services 4,283,612 8,000,000 3,716,388 46.45 Delay in Phase 2 – to continue in July 2008

Public Works: 1,339,474,818 1,536,323,549 196,848,731 12.81

Roads and Stormwater 442,898,465 555,743,000 112,844,535 20.31 The EIA studies were delayed.
Transport 27,725,543 71,300,000 43,574,457 61.11 There were delays in the procurement process, and MIG funding was awaiting business plan
approval.
Electricity 398,567,457 421,985,549 23,418,092 5.55 The late posting of reservations caused a variation in the contractor payments as a result of the
escalation in material prices.
Water and Sanitation 470,283,353 487,295,000 17,011,647 3.49
Net expenditure 1,757,902,300 2,071,179,088 313,276,788 15.13

2009/06/04 09:22:52 AM
 ANNEXURE H
Disclosures of Grants and Subsidies in terms of Section 123 of the MFMA (ACT 56 of 2003)

Annual Report v2.indd 197

Name of grant Name of organ of state or Quarterly receipts Expenditure Closing Grants and Reason Did your municipality Reason
municipal entity balance subsidies for delay/ comply with the grant for
Opening September December March June Total June
R delayed/ withhold- conditions in terms of non-
balance R R R R R R
withheld ing of the grant framework com-
R
July to June funds in the latest Division of pliance
Revenue Act?

Capital grants:

Economic Development Gauteng: Sport, Recreation 3,749,841 0 0 1,990,000 0 5,739,841 4,624,440 1,115,401 None None Yes n/a

National Electricity Fund National Electricity Regula- 4,025,783 0 23,900,000 28,500,000 0 56,425,783 52,227,673 4,198,110 None None Yes n/a
tor
Gauteng: project-linked Gauteng: Housing Depart- 22,113,701 0 6,620,688 24,164,814 10,179,765 63,078,968 62,190,527 888,441 None None Yes n/a
housing ment
North West: project- North West: Housing 1,922,450 0 0 0 0 1,922,450 0 1,922,450 None None Yes n/a
linked housing
Municipal Infrastructure Department: Provincial and 19,794,905 34,755,000 161,683,749 40,000,000 256,233,654 220,341,029 35,892,625 None None Yes n/a
Grant (MIG) Local Government
Gautrans Job Creation Gautrans 5,000,000 0 0 0 0 5,000,000 0 5,000,000 None None Yes n/a

Water and Sanitation Department of Water Af- 21,992,328 0 0 0 25,677 22,018,005 22,018,005 0 None None Yes n/a
fairs and Forestry
Electricity for All Department of Mineral and 0 0 0 0 0 0 0 0 None None Yes n/a
Energy Affairs
Transportation Gauteng Department 3,000,000 0 0 0 0 3,000,000 0 3,000,000 None None Yes n/a
Transportation Engineering
Eskom Eskom 5,780,000 0 0 0 0 5,780,000 5,767,047 12,953 None None Yes n/a

World Cup Soccer Gauteng Department 0 15,159,374 15,159,374 0 30,318,748 10,603,832 19,714,916 None None Yes n/a
2010: roads Transportation Engineering
World Cup Soccer Gauteng Department 0 24,215,626 24,215,626 0 48,431,252 0 48,431,252 None None Yes n/a
2010: Transport Transportation Engineering
Restructuring Grant National Treasury 0 56,747,798 0 33,252,202 0 90,000,000 89,907,728 92,272 None None Yes n/a

City of Tshwane Annual Report 2008/2009 //

Unforeseen water Gauteng: Department of 7,322,068 0 0 0 0 7,322,068 0 7,322,068 None None Yes n/a
problems Public Works
CHAPTER FOUR: Annexure H

Sandspruit Works As- Various spheres of govern- 0 0 0 0 4,282,952 4,282,952 0 4,282,952 None None Yes n/a

pg 197
sociation ment
94,701,076 91,502,798 69,895,688 288,965,765 54,488,394 595,270,769 467,680,281 131,873,440

(continued overleaf)

2009/06/04 09:22:56 AM
 Name of grant Name of organ of state or Quarterly receipts Expenditure Closing Grants and Reason Did your municipality Reason
municipal entity balance subsidies for delay/ comply with the grant for
Opening September December March June Total June

Annual Report v2.indd 198

R delayed/ withhold- conditions in terms of non-
balance R R R R R R

pg 198
withheld ing of the grant framework com-
R
July to June funds in the latest Division of pliance

//
Revenue Act?

Operational grants/subsidies:

Health: HIV and Aids National Department of 2,000,000 0 0 1,500,000 0 3,500,000 2,000,000 1,500,000 None None Yes n/a
Health
Heath subsidy National Department of 0 4,552,000 5,813,500 12,303,500 22,669,000 22,669,000 0 None None Yes n/a
Health
Ambulance subsidy Provincial Department of 0 757,440 17,110,372 8,550,500 8,660,970 35,079,282 35,079,282 0 None None Yes n/a
Health
CHAPTER FOUR: Annexure H

Top structures: project- North West Housing 1,410,484 24,363,984 35,411,076 15,146,285 62,655,207 138,987,036 125,601,978 13,385,058 None None Yes n/a
linked housing

City of Tshwane Annual Report 2008/2009

Finance Management National Treasury 1,503,403 500,000 0 0 0 2,003,403 698,716 1,304,687 None None Yes n/a
Grant
Restructuring Grant National Treasury 78,921,694 40,000,000 19,950,001 50,000 138,921,695 52,227,861 86,693,834 None None Yes n/a

Municipal System National Treasury 3,000,000 0 0 0 0 3,000,000 2,501,600 498,400 None None Yes n/a
Improvement Grant
Equitable Share Department of Provincial 0 367,138,698 275,354,023 458,923,372 0 1,101,416,093 1,101,416,093 0 None None Yes n/a
and Local Government
Refurbishment of Temba Department of Water Af- 399,000 6,237,250 2,448,750 6,341,250 3,363,573 18,789,823 18,789,823 0 None None Yes n/a
Works fairs and Forestry
Department of Water Department of Water Af- 2,676,000 2,676,000 2,676,000 0
Affairs fairs and Forestry
Housing Accreditation Gauteng Housing Depart- 268,050 3,000,000 2,003,800 0 5,271,850 2,335,043 2,936,807 None None Yes n/a
ment
Bontle Ke Botho Gauteng: Agriculture, Con- 177,223 610,000 0 0 670,000 1,457,223 0 1,457,223 None None Yes n/a
servation and Evironment
Sport and Recreation Gauteng: Sport, Recreation 0 0 0 1,390,000 0 1,390,000 1,390,000 0 None None Yes n/a

Arts and Culture Gauteng: Sport, Recreation 0 0 0 0 1,757,000 1,757,000 1,757,000 0 None None Yes n/a

2009/06/04 09:23:00 AM
Annual Report v2.indd 199
Name of grant Name of organ of state or Quarterly receipts Expenditure Closing Grants and Reason Did your municipality Reason
municipal entity balance subsidies for delay/ comply with the grant for
Opening September December March June Total June
R delayed/ withhold- conditions in terms of non-
balance R R R R R R
withheld ing of the grant framework com-
R
July to June funds in the latest Division of pliance
Revenue Act?

Loftus upgrade 2010 Gauteng Department of 4,000,000 0 0 52,777,600 2,517,380 59,294,980 10,848,271 48,446,709 None None Yes n/a
Transport
Agriculture Gauteng Department of 460,000 0 0 440,000 0 900,000 460,000 440,000
Agriculture, Conservation
Motor vehicle licences Gauteng Department of 0 11,728,105 16,598,061 4,707,409 33,157,769 66,191,344 66,191,344 0 None None Yes n/a
refund Transport
World Cup Soccer: Gauteng Department 0 7,000,000 144,495 0 7,144,495 2,905,569 4,238,926 None None Yes n/a
roads Transportation Engineering
World Cup Soccer: Gauteng Department 0 0 23,712,500 19,687,500 0 43,400,000 0 43,400,000 None None Yes n/a
transport Transportation Engineering
Monument Golf Club Monument Golf Club 3,000,000 0 0 0 0 3,000,000 0 3,000,000 None None Yes n/a

95,139,854 454,011,477 385,186,782 597,375,712 125,135,399 1,656,849,224 1,449,547,580 207,301,644

Revenue according to the Statement of Financial

Performance (see note 21)
1,917,227,861

Unspent conditional grants according to the State-

ment of Financial Position (see note 8)
339,175,084

City of Tshwane Annual Report 2008/2009 //

CHAPTER FOUR: Annexure H

pg 199

2009/06/04 09:23:04 AM
 CHAPTER FOUR: Financial Statements

>> 4.5 Action Plan Regarding the Audit Report

Financial Statements

Property rates and property values

1. could not satisfy myself as to the accuracy, completeness and occurrence of the amounts
(current and corresponding figures) disclosed as property rates and property values in the state-
ment of financial performance and note 18 to the financial statements, as incomplete and insuf-
ficient information was provided for audit purposes. No alternative audit procedures could be
performed and, consequently, I was unable to satisfy myself as to the completeness, occurrence
and accuracy of the property rates and the property values as at 30 June 2008 totalling R2,181
billion (30 June 2007: R1,719 billion) and R20,616 billion (30 June 2007: R21,333 billion),
respectively.

Management response
The match and reconciliations between Property Valuation and the SAP billing systems done
by interfacing the two systems was performed regularly until the end of January 2008 and was
stopped to allow the testing and implementation of the MPRA (Municipal Property Rate Act, 2004
(Act 6 of 2004)) to link with the Billing System.

The cut-off date for capturing supplementary valuation information onto the property valuation
system for general valuation of 2002 was 1 February 2008 to facilitate the implementation of
the MPRA by 1 July 2008. It was essential to halt the interfacing with SAP to prevent billing errors
and any subsequent delay in the implementation of the MPRA. The testing included the creation
of sectional title units on the property valuation and SAP billing system and reconciliation with the
deeds registration information system.

Planned action
The City Manager will ensure that the data is reconciled between the Registrar of Deeds, GIS,
property valuation and the SAP billing systems to address the audit qualification.

2. Property, plant and equipment

The City of Tshwane did not recognise certain items of property, plant and equipment with a pur-
chase value of less than or equal to R10 000. The cumulative amount of these items expensed
over the years total about R155,167 million. Expensing these amounts was in contravention of
the Generally Accepted Municipal Accounting Practice, GAMAP 17 Property, Plant and Equip-
ment, which states that an item of property, plant and equipment that qualifies for recognition as
an asset shall be carried at cost less any accumulated depreciation. Therefore the carrying value
of property, plant and equipment is misstated by an unknown amount, as the depreciation and
accumulated depreciation cannot be accurately determined. No alternative audit procedures

pg 200 // City of Tshwane Annual Report 2008/2009

Annual Report v2.indd 200 2009/06/04 09:23:07 AM

 CHAPTER FOUR: Financial Statements

could be performed.
Management comment
The Council approved revisions to the asset management policy in May 2008. The policy pro-
vides for a threshold value on the capitalisation of assets. The policy also provides the Chief
Financial Officer with the prerogative to institute any threshold value he or she deems fit. The
definition of materiality as per the Accounting Standards Board was taken into consideration
when determining the threshold value of R10 000,00. The approved policy furthermore proposes
a retrospective implementation and adjustment of the threshold value (up to where the value was
previously increased to R100,000,00) which was duly carried out.

The value of R155,167 million indicated in the audit report refers to the total value of items
recorded on the register dealing with low-value assets, and not assets expensed during the
2007/08 financial year. The management of the items on this system has been decentralised to
departments. It is the responsibility of the Chief Financial Officer to ensure proper controls.

In reviewing the GAMAP/GRAP statements, no expressed objection could be found to the imple-
mentation of a threshold value in the management of assets. The City of Tshwane is obliged to
adhere to the threshold value stated in the policy as there is no contradictory financial legislation
or guidelines on the matter.

Planned action
We take note of the Auditor-General’s expressed concerns regarding the City of Tshwane’s ap-
plication of a threshold value in the capitalisation of its assets. Urgent attention will be given to
the matter and the pertinent financial policies, procedures and processes will be addressed to
ensure compliance with the accounting standards.

3. Municipal Finance Management Act

In 2001 the then City of Tshwane Council resolved to provide an official residence to the mayors
of the City of Tshwane. This provision of an official residence to a mayor does not fall within the
framework of the Remuneration of Public Office Bearers Act, 1998 (Act 20 of 1998), which in
turn results in the transgression of section 167 of the MFMA which came into effect in 2004 and
states that a municipality may remunerate its members of the political structure only within the
framework of the Remuneration of Public Office Bearers Act, 1998. If it falls outside this, it must
be classified as irregular expenditure and the municipality must take the appropriate steps as
required.

Planned action
The Accounting Officer in consultation with the Audit Committee will compile a report to the
Mayoral Committee and Council to address this issue.

City of Tshwane Annual Report 2008/2009 // pg 201

Annual Report v2.indd 201 2009/06/04 09:23:11 AM

 CHAPTER FOUR: Financial Statements

Report on Performance Information

4. Non-compliance with regulatory requirements

Although the integrated development plan (IDP) was adopted on 31 May 2007, the public was
only notified on 5 October 2007 and not in good time as required by section 25(4) of the MSA.

Planned action
Although the City of Tshwane did not achieve compliance with legislation in the 2007/08 finan-
cial year, this was corrected in the 2008/09 financial year for the second revision of the IDP. The
City Manager will continue to ensure compliance through the IDP process plan and ensure that
resources are made available for this purpose.

4.1 A performance management specialist was only appointed in January 2008 with the result
that there was no performance management specialist for the period 1 July 2007 to 31 Decem-
ber 2007. Furthermore, the terms of reference of the audit committee were not amended during
the 2007/08 financial year to make provision for the performance management specialist and
to incorporate the roles and responsibilities pertaining to performance management. The audit
committee charter was subsequently amended and approved by the Council on 2 October
2008, but the amendments made are applicable to the 2008/09 financial year only.

Planned action
This matter was resolved. The performance specialist was appointed and the audit committee
charter was approved by the Council.

4.2 Two separate performance audit committees were established at the City of Tshwane. The
Council appointed an audit committee and resolved that it be used as the City of Tshwane per-
formance audit committee during January 2008. Subsequent to this appointment, however, the
remuneration and performance management committee, established on 25 August 2005, was
also appointed as a performance audit committee by the mayoral committee per a resolution
dated 22 October 2008.

Planned action
The Mayoral Committee has deliberated on this matter and a report will be tabled to the Council
during the 2008/09 financial year to confirm the roles of the two committees.

5. Measures to improve performance were not always disclosed in the annual performance re-
port, as required by section 46(1)(c) of the MSA.

Planned action
The City Manager will ensure that all departments comply with reporting requirements. Reports

pg 202 // City of Tshwane Annual Report 2008/2009

Annual Report v2.indd 202 2009/06/04 09:23:15 AM

 CHAPTER FOUR: Financial Statements

that do not meet all requirements, including being signed off by the SED, will not be accepted.
The City Manager will implement corrective measures where there is non-compliance.

6. The internal audit unit did not perform audit evaluations and reviews on the 2007/08 first and
second quarterly performance reports, as required by section 45 of the MSA. Furthermore, al-
though the provisional 2007/08 mid year report was submitted to the Mayoral Committee on 16
January 2008 and submitted to the Council on 24 January 2008, this report was only referred
to internal audit for evaluation and review on 6 June 2008.

Planned action
This issue will be addressed in the 2008/09 financial year. A new structure has been approved
to beef up the internal audit capacity.

7. A signed service level agreement between the City of Tshwane and the Housing Company
Tshwane, as required in terms of sections 76 and 77 of the MSA, could not be provided for audit
purposes.

Planned action
The process to put a governance structure for the HCT in place is at an advanced stage. The
report regarding the appointment of the Board of Directors for HCT will be tabled at the Council
meeting of 29 January 2009 for approval. As soon as the Board of Directors is appointed, it must
adopt an SLA and refer this to the Council for approval.

No correlation between performance targets in the IDP

8. The following were noted with regard to the performance targets as contained in the IDP:

• The sum total of the annual targets over a period of five years (2006 to 2011) does not
agree with the total as per the five-year departmental targets.
• In some instances, there is no correlation between the annual performance targets and the
departmental targets set for the five-year programme.

Planned action
During the 2007/08 financial year changes were made to targets and indicators on the SDBIP
after the IDP was approved. This resulted in discrepancies between the IDP and the SDBIP. Some
corrections are being made in the 2008/09 year with an adjusted SDBIP which will be submitted
to the Mayoral Committee once the adjusted budget is approved by the Council.

Further corrections with regard to the annual targets in relation to the five-year targets are being
made in the third revision of the IDP to be submitted to the Council in May 2009, as such correc-
tions would involve the amendment of the IDP and have to be subjected to a public participation

City of Tshwane Annual Report 2008/2009 // pg 203

Annual Report v2.indd 203 2009/06/04 09:23:18 AM

 CHAPTER FOUR: Financial Statements

process and approved by the Council. Since the Auditor-General report was only completed
during the mid-term of the 2008/09 financial year, these matters could not be resolved in the
2008/09 IDP second revision.

Targets inconsistent between IDP and annual performance report

9. Some of the approved targets as contained in the 2007/08 IDP are inconsistent with the
targets as reported in the 2007/08 annual performance report. The following targets serve as
examples:

• Quality infrastructure
• Maintenance of roads
• Maintenance of transport facility
• Maintenance of traffic signals

Planned action
There was a change of information between the approval of the 2007/08 IDP and the 2007/08
SDBIP which resulted in some discrepancies. As indicated above, some of the issues are to be
resolved in the 2008/09 financial year by ensuring no major changes to the SDBIP once the IDP
was approved, and by taking through adjustments made to the SDBIP as a result of the approved
adjustments budget into an adjusted SDBIP that will be submitted to the Mayoral Committee for
approval in March.

Further, as indicated above, the risk of inconsistent targets will be further minimised through the
IDP third revision to be submitted to the Council in May 2009. Departments are to ensure that
information submitted for planning purposes consistently correlates with budget and planning
guidelines and budget allocations to ensure that there are no inconsistencies.

Lack of sufficient appropriate audit evidence

10. In verifying the actual performance against predetermined objectives of the City of Tshwane
for the 2007/08 financial year in relation to the development priority and objective “Provide
quality basic services and infrastructure” as contained in the 2007/08 annual performance re-
port, the following were noted:

• In some instances evidence submitted for audit purposes was not sufficient and appropriate
to support the actual targets achieved.
• In other instances evidence to support the actual targets achieved as contained in the
2007/08 annual performance report was not submitted for audit purposes as requested.
• Planned action
• The City Manager will take steps to ensure that all departments submit evidence of perfor-

pg 204 // City of Tshwane Annual Report 2008/2009

Annual Report v2.indd 204 2009/06/04 09:23:22 AM

 CHAPTER FOUR: Financial Statements

mance to Internal Audit as required for verification of performance. The City Manager will
implement corrective measures where there is non-compliance.

Evidence inconsistent with reported performance information

11. The percentage of unaccounted for water as per the water and sanitation departmental
report did not agree with the percentage of unaccounted for water as reported in the 2007/08
annual performance report.

Planned action
All departments will ensure correct reporting substantiated with the evidence above. The City
Manager will implement corrective measures in the event of non-compliance.

Incomplete performance information submitted

12. I was not able to verify that the performance information relating to the municipal entities
was incorporated in the 2007/08 City of Tshwane annual performance report. The performance
information relating to the percentage of unaccounted for water as detailed in the performance
report of the Sandspruit Works Association serves as an example.

Furthermore, the annual performance report submitted for audit purposes on 31 August 2008
was incomplete and did not in all instances include essential information as required by the rel-
evant laws and regulations.

Planned action
All departments will ensure that all reporting requirements are consistently complied with, as
communicated by the City Manager. The City Manager will implement corrective measures in
cases of non-compliance.

City of Tshwane Annual Report 2008/2009 // pg 205

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 CHAPTER FIVE: Functional Service Delivery

Report based on the functional classification systems for government finance statistics

>> 5.1 General information

The City of Tshwane Metropolitan Municipality has been classified as a Category A, Grade 6,
urban municipality by the Municipal Demarcation Board in terms of Section 4 of the Local Gov-
ernment: Municipal Structures Act, 1998. It was established on 5 December 2000 through the
integration of various municipalities and councils that had previously served the greater Pretoria
and surrounding areas.

The new Municipality was formed through the amalgamation of the following local authorities:

• The Greater Pretoria Metropolitan Council

• The City Council of Pretoria
• The Town Council of Centurion
• The Northern Pretoria Metropolitan Substructure
• The Hammanskraal Local Area Committee
• The Eastern Gauteng Services Council
• The Pienaarsrivier Transitional Representative Council
• The Crocodile River Transitional Council
• The Western Gauteng Services Council
• The Winterveld Transitional Representative Council
• The Temba Transitional Representative Council
• The Mabopane Transitional Representative Council
• The Ga-Rankuwa Transitional Representative Council
• The Eastern District Council

pg 206 // City of Tshwane Annual Report 2008/2009

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 CHAPTER FIVE: Functional Service Delivery

5.1 General information

The Municipality is divided into 76 wards. A total of 1 070 590 residents were registered as vot-
ers in the 76 wards, using the municipal ward delimitation of the Municipal Demarcation Board
for the 2005/06 local elections. Information from Provincial Gazette 84, 28 February 2005, as
amended, indicates the following number of voters per ward:

WARD 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Number of reg- 15 14 14 12 13 12 12 12 12 16 13 13 13 12 15
istered voters 916 368 171 897 040 894 666 860 091 191 743 371 111 148 450

WARD 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Number of reg- 12 15 14 12 14 13 14 16 12 12 15 14 13 13 12
istered voters 150 876 478 731 586 408 918 169 377 745 222 566 492 456 786

WARD 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45

Number of reg- 12 12 13 13 12 15 15 15 13 15 14 15 15 15 15
istered voters 420 312 104 417 425 159 291 240 997 966 137 575 316 843 338

WARD 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60

Number of reg- 15 15 16 13 14 12 15 14 13 13 15 16 15 15 15
istered voters 641 526 154 496 184 535 985 813 134 538 046 057 644 684 344

WARD 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76

Number of reg- 13 12 12 12 15 13 12 12 14 15 12 14 15 14 14 12
istered voters 398 400 812 671 648 976 174 486 039 245 909 066 508 065 100 805

City of Tshwane Annual Report 2008/2009 // pg 207

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 CHAPTER FIVE: Functional Service Delivery

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 CHAPTER FIVE: Functional Service Delivery

5.1.1 Demography

5.1.1.1 Total population (individuals)

Year Number Growth %

*2001 1 985 982 Data not available
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
2007 2 345 908 5.3
Source: *StatsSA (Census 2001), updated by annual household/community surveys

5.1.1.2 Growth in the total population (individuals and households)

People Households
Census: 2001 Community survey: 2007 Census: 2001 Community survey: 2007
1 982 235 2 345 908 561 771 686 640
Percentage growth 2001 to 18,3% Percentage growth 2001 to 22,2%
2007: 2007:

5.1.1.3 Age breakdown

Age breakdown 1996 2001 Age breakdown 2007

Number % Number % Number %
0 to 4 153,381 9,2% 155,757 7,8% 0 to 10 460,430 19,6%
5 to 14 297,471 17,9% 331,106 16,7% 11 to 20 369,901 15,8%
15 to 34 660,365 39,7% 806,811 40,6% 21 to 30 484,037 20,6%
35 to 64 473,503 28,5% 603,816 30,4% 31 to 40 420,012 17,9%
Over 65 78,714 4,7% 88,492 4,5% 41 to 50 295,540 12,6%
51 to 60 170,452 7,3%
61 to 70 85,491 3,6%
71 to 120 60,044 2,6%
Total 1663,434 1985,982 2,345,907

City of Tshwane Annual Report 2008/2009 // pg 209

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 CHAPTER FIVE: Functional Service Delivery

5.1.1.4 Population groups

1996 2001 2007

% % %
African 1,144,200 68,5% 1,442,579 72,6% 1,749,723 74,6%
Coloured 29,613 1,8% 38,720 1,9% 47,705 2%
Indian or Asian 24,716 1,5% 30,130 1,5% 30,715 1,3%
White 471,258 28,2% 474,553 23,9% 517,764 22,1%
Total 1,669,787 100% 1,985,982 100% 2,345,907 100%

5.1.2 Household income

Monthly income 2005 2007 5
% No %
No income 14,4% 117,717 16,87%
R1 to R400 3,4% 17,915 2,57%
R401 to R800 10,1% 44,039 6,31%
R801 to R1 600 14,2% 128,217 18,38%
R1 601 to R3 200 14,5% 83,865 12,02%
R3 201 to R6 400 12,7% 67,029 9,61%
R6 401 to R12 800 11,1% 71,469 10,24%
R12 801 to R25 600 8,4% 45,287 6,49%
R25 601 to R51 200 3,6% 25,395 3,64%
R51 201 to R102 400 0,9% 7,303 1,05%
R102 401 to R204 800 0,5% 3,313 0,47%
R204 801 or more 0,3% 2,266 0,32%
Response not given 6% 83,792 12,01%
Total 100% 697,607 100%

5 StatsSA community survey 2007

pg 210 // City of Tshwane Annual Report 2008/2009

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 CHAPTER FIVE: Strategic Objectives

5.1.3 Employment by age group 6

Age Employed Percent- Unem- Percent- Not eco- Not ap- Total
group age em- ployed age un- nomically plicable/
ployed employed active institutions
15 to 19 12 262 0.7 15 296 0.9 147 669 18 330 193 558
20 to 25 100 923 6.1 79 091 4.8 98 745 18 489 297 249
26 to 30 135 510 8.1 60 198 3.6 31 255 10 154 237 117
31 to 35 144 087 8.7 46 167 2.8 22 045 9 702 222 002
36 to 40 140 339 8.4 31 487 1.9 19 764 6 423 198 013
41 to 45 112 351 6.8 23 231 1.4 19 958 5 619 161 159
46 to 50 96 369 5.8 15 689 0.9 17 171 5 149 134 378
51 to 55 66 069 4.0 8 260 0.5 22 114 3 358 99 802
56 to 60 40 141 2.4 3 921 0.2 24 183 2 406 70 650
61 to 65 17 369 1.0 1 299 0.1 28 460 2 211 49 338
Total 865 420 52% 284 639 34,2% 431 364 81 841 1 663 266

5.1.4 Indigent population

The City of Tshwane’s social package policy allows for residents to register as indigents, provided
that –

1. the total gross monthly income of all the members of the household does not exceed the joint
pensions of two old age state pensioners;
2. the applicant and any other member of the household do not own fixed property other than
the one on which they reside; and
3. the improved municipal value of the property on which the household resides does not ex-
ceed R150 000.

During the 2007/08 financial year, 47 774 households were registered as indigent.

>> 5.2 Corporate Performance Report

5.2.1 Strategic objectives

The Council approved the following strategic objectives as the basis for its five-year programme:

• Provide quality basic services and infrastructure

• Accelerate higher and shared economic growth and development
• Fight poverty, and build clean, healthy, safe and sustainable communities
• Foster participatory democracy and Batho Pele principles through a caring, accessible and
accountable service
• Ensure good governance, financial viability and optimal institutional transformation with
capacity to execute its mandate

6 StatsSA. SuperCROSS. Copyright © 1993-2008 Space Time Research Pty Ltd. 2 July 2008

City of Tshwane Annual Report 2008/2009 // pg 211

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 5.2.2 Key performance areas
Progress at the end of June of the 2007/08 financial year

Annual Report v2.indd 212

pg 212
KPA KPI Backlogs Five-year programme Achieved 2006/07 Five-year programme 2007/08 annual IDP/ 2007/08 SDBIP 2007/08 adjustments Actual 2007/08 Comments on vari-

//
target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to
improve performance

Eradication /reduc- The percentage of Since this indicator Eradicate basic Water: 89% 7 Eradicate basic Eradicate basic 563 936 households n/a Piped water:97,1%8 SDBIP targets were
tion of infrastructure households with is an aggregated services backlogs ac- services backlogs ac- services backlogs ac- receive water (666 724 house- based on household
backlogs access to basic levels indicator, the cording to or earlier cording to or earlier cording to or earlier holds) growth assumptions.
of water, sanitation, backlogs per type of than national targets than national targets than national targets The 2005 household
electricity, solid waste service differ and are survey (SSA) esti-
removal, roads and discussed below per mated a total of 621
stormwater, and service. 210 households.
housing (NKPI) Therefore the City of
Tshwane planned for
example that 90,8%
of households would
receive water.
CHAPTER FIVE: Strategic Objectives

Electricity: 100% in 431 441 households Electricity: 77,4%

City of Tshwane Annual Report 2008/2009

the Tshwane supply receive electricity (531 459 house-
area and 82% 9 for holds)
all areas in Tshwane

Sanitation: 95% 10 495 135 households Sanitation: 97,6% The current CS survey
receive sanitation (670 161 house- indication is that
holds) we have achieved
97,1%.

Waste removal: 760 634 waste Waste removal: The target for waste
84,6% removal points 77,1% (529 399 removal points in-
households) (Com- cludes businesses – it
munity Survey StatsSA is the number of bins
2007) removed.

7 8 9 10
HSRC Tshwane citizen’s report card survey done in 2006 StatsSA 2007 community survey HSRC Tshwane citizen’s report card survey done in 2006 HSRC, 2006, Tshwane citizen’s report card survey

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Annual Report v2.indd 213
KPA KPI Backlogs Five-year programme Achieved 2006/07 Five-year programme 2007/08 annual IDP/ 2007/08 SDBIP 2007/08 adjustments Actual 2007/08 Comments on vari-
target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to
improve performance

146 664 households Housing: 80% of 136 7609 of 620210 Contribute towards 6000 top structures 77,36% (486 767 n/a PRTs 11 = 5 810 69,9% (479 962)
are living in informal 000= 112 000 households, 481 155 the national target of out of a projected City of Tshwane= households live in
settlements of which (77,6%) have access formalising informal 629 218 households) 6 152 formal dwellings 12
93% (136 397) are to formal housing. settlements by 2014 have access to formal 11 962
South African citizens. by providing 6 000 housing.
top structures per
annum in addition to
the Gauteng 12 000
top structures per
annum

Eradication /reduc- The percentage of 240 969 informal Of the 146 644 Establish townships 77,36% of house- 77,36% of house- n/a 72,1% (CS 2007: The estimated
tion of infrastructure households 13 with dwelling units that households living in from informal settle- holds live in formal holds live in formal Stats SA) (494 793 number of house-
backlogs access to basic levels should be formalised informal settlements ments at a rate of dwellings. dwellings. households out of holds has increased
of housing (NKPI) at the beginning of 10% per annum the estimated total of according to the CS
the financial year, (estimated 486 767 (estimated 486 767 686 640 households) 2007, which impacts
139 055 still live out of 629 218) 14 out of 629 218) 15 on the percentages
in informal settle- achieved.
ments, which equals
22,4% of the popula-
tion of 620210.

Universal basic Provide 12 000 Provide 12 000 n/a 12 000 water con-
water by 2008 and residential stands residential stands nections
contribute towards with sewer and water with sewer and water 12 006 sewer con-
the national target connections connections nections
of universal basic
sanitation by 2010

11 12 13
PRT stands for Gauteng Professional Resource Team StatsSA 2007 community survey For purposes of the 2007/08 financial year the total number of households in the City of Tshwane is estimated at 686 640 according to the StatsSA community
14 15
survey 2007. See the approved first revised IDP 2007/08 for details on the calculation of the estimated total number of households in Tshwane. See the approved first revised IDP 2007/08 for details on the calculation of the estimated total number
of households in Tshwane.

City of Tshwane Annual Report 2008/2009 //

CHAPTER FIVE: Strategic Objectives

pg 213

2009/06/04 09:23:58 AM
 KPA KPI Backlogs Five-year programme Achieved 2006/07 Five-year programme 2007/08 annual IDP/ 2007/08 SDBIP 2007/08 adjustments Actual 2007/08 Comments on vari-
target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to

Annual Report v2.indd 214

improve performance

23,6% of the total 65 settlements 16 that 18 areas were Establish townships 30% 17 of settle- 7 of the 42 remaining 0% – only one town- Outstanding power of

pg 214
households live in can be formalised proclaimed from informal settle- ments that can be informal settlements ship approved attorney

//
informal settlements ments at a rate of established
By 2009, establish all 10% per annum. It needs to be under-
informal settlements stood that there is a
that can be estab- difference between
lished as townships establishing a settle-
and establish the rest ment 18 , proclaiming
by 2014. a township 19 and
formalising informal
settlements 20.
22
The percentage of Water: 20 263 Universal basic water 20 198 water con- Universal basic water 7535 (Water and 100% of households n/a 97,1% of households Community survey
households 21 with by 2008 nections by 2008 Sanitation) in proclaimed areas have access to piped StatsSA 2007
access to basic levels 600 have access water
of water (NKPI) Upgrade the 20 263 Households with 12 000 (Housing)
(Functional analysis) households with a access to basic or 11 168 connections
below basic level of higher water: 100% of informal provided by the
CHAPTER FIVE: Strategic Objectives

City of Tshwane Annual Report 2008/2009

Housing: 112 000 water service to at Tshwane report card settlements receive Water and Sanitation
least a basic level survey (HSRC, 2006) water Division
before December indicates that 89% of
2008 households have ac- 12 000 (Housing)
cess to piped water – see above under
Provide services to formalisation of
houses as they are Water Department settlements
built by the Housing functional Analysis:
Department. 396 419 residents Total: 23 168 water
have access to piped connections
water inside the
dwelling 100% of households
109 206 have access in unproclaimed
to piped water from a areas have access to
tap less than 200 m water through Jojo
from the dwelling tankers.
82% of residents have
access = 505625
households

16 17 18 19
According to the HCPEM departmental detail report for the fourth quarter 2006/07 In total 19 informal settlements are to be formalized accumulatively Established township means a township approved by the Council. Proclaimed township
20
means a township proclaimed in the Provincial Gazette after is was approved by the Council. Formalising townships (Housing Department) = township that was pegged and ready for the installation of services – therefore a township where stands can be
21 22
identified. For the 2007/08 financial year, the total number of households in the City of Tshwane is estimated at 686 640 according to the StatsSA community survey 2007. The water backlog was estimated at 28 869 per reviewed IDP 2006-2011,
but is now estimated at 20 263 according to the information provided by the Department of Public Works and Infrastructure for the analysis of backlogs (see Chapter 2 of this report)

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Annual Report v2.indd 215
KPA KPI Backlogs Five-year programme Achieved 2006/07 Five-year programme 2007/08 annual IDP/ 2007/08 SDBIP 2007/08 adjustments Actual 2007/08 Comments on vari-
target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to
improve performance

Eradication/reduc- The percentage of The Electricity Depart- Electricity equals the 11 131 Electrify 112 000 of 12 000 completed 100% of households n/a 77,4% (CS 2007) The department
tion of infrastructure households with ac- ment will electrify housing backlog 136000 houses by and occupied houses in proclaimed areas reports that 380 863
backlogs cess to basic levels of houses delivered by (112 000) (exclud- 13 110 in Winterveld 2011 electrified 11 250 completed households in the
electricity (NKPI) the Housing Depart- ing figures in the and occupied houses Tshwane distribution
ment in terms of the Eskom supply areas) 47 964 Eskom con- 7 200 completed and electrified area and 86 240
housing backlog. sumers + 445 053 occupied houses in households in the
Tshwane households Winterveld electrified 5152 completed and Eskom distribution
There is no backlog, = 493 027. This occupied houses in areas have access
other than the forms 79,5% of the Winterveld electrified to electricity, that is
housing backlog and total of 620210 467 100/686 640
excluding figures in households with ac- = 68%.
the Eskom supply cess to electricity.
areas These figures are low-
The HSRC Tshwane er than the estimates
citizen’s report card derived from the
survey done in 2006 StatsSA community
reports 82% access survey, namely 77,4%
(531459 house-
holds).

The funds allocated

could only accom-
modate 11,250 +
5,152 = 16,402
towards backlog
eradication

23 24
For the 2007/08 financial year, the total number of households in Tshwane is estimated at 686 640 according to the StatsSA community survey 2007. It was decided (see the five-year programme: detailed city plan) that 112 000 (82%) of 136 000 top
25 26
structures will be electrified. Figure provided by the City of Tshwane Electricity Department in the fourth quarter report 420 812 City of Tshwane households with electricity according to the City of Tshwane annual report 2005/06, p16 + 11 131 + 13
27
110 (achievement of the year under review) This includes houses electrified by other partners through service level agreements.

City of Tshwane Annual Report 2008/2009 //

CHAPTER FIVE: Strategic Objectives

pg 215

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 KPA KPI Backlogs Five-year programme Achieved 2006/07 Five-year programme 2007/08 annual IDP/ 2007/08 SDBIP 2007/08 adjustments Actual 2007/08 Comments on vari-
target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to

Annual Report v2.indd 216

improve performance

The percentage of Sanitation: 38 760 29 Contribute towards 20 849 sewer con- Universal basic 1 500 (Water and 1 500 (Water and n/a 97,6% (Community

pg 216
households 28 with the national target nections sanitation by 2010 Sanitation) Sanitation) survey StatsSA 2007)

//
access to basic levels Housing 112 000 of universal basic
of sanitation (NKPI) sanitation by 2010 Households with 12 000 (Housing) 12 000 (Housing) 1 217 sewer con-
access to basic or nections
higher sanitation:
(Water and Sanita-
flush toilets: 72% tion)
VIP toilets: 23%
95% with access 30 12 006 sewer con-
nections

Housing – see above

under formalisation
of settlements

Total: 13 223
CHAPTER FIVE: Strategic Objectives

City of Tshwane Annual Report 2008/2009

Eradication/reduc- Length of roads up- An estimated 402 To reduce the current 40.46 km of road To reduce the current 39.6 km (RandSW) 88.1 km of intermedi- 71.1 km 77.5 km (RandSW) IDP target exceeded
tion of infrastructure graded to reduce the km of class 4 roads backlog of roads by backlogs by 14% by ate or higher level of
backlogs backlogs (in km) (bus routes), which 14% by 2011, by There is a total of 2011, by 25% by 4000 stands (20 roads managed as a 7 162 stands
are currently gravel 25% by 2016 and by 7863 km of roads 2016 and by 60% km of roads and proportion of the total
roads. 60% by 2020 z in Tshwane, of which by 2020 stormwater (Housing class 4 and 5 roads (44.76 km) (Housing
5536 km are tarred. Department) in the city Dept)
An estimated 2357 14% = 327.6 km
km class 5 roads (in- by 2011
ternal roads), which
are currently gravel
roads 31 .

28 29
For the 2007/08 financial year the total number of households in Tshwane is estimated at 686 640 according to the StatsSA Community survey 2007. Previously estimated at 96 426 (City of Tshwane reviewed IDP 2006-2011) now estimated at 38 760.
30 31
Figure provided by the Department of Public Works and Infrastructure for the analysis of backlogs (see Chapter 2 of this report). HSRC, 2006, Tshwane citizen’s report card survey. Figures from a report that served before the Council on 25 January
32
2007: defining service levels. Note: The current estimated cost of backlogs regarding roads is R6 200 million and regarding stormwater R1 200 million.

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Annual Report v2.indd 217
KPA KPI Backlogs Five-year programme Achieved 2006/07 Five-year programme 2007/08 annual IDP/ 2007/08 SDBIP 2007/08 adjustments Actual 2007/08 Comments on vari-
target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to
improve performance

Length of intermedi- 39.7 km of storm- To reduce the current 38.1 km of storm- 81.2 km of storm- 88.9 89.8 km Target exceeded
ate or higher level of water backlogs by 14% by water water
stormwater drainage 2011, by 25% by
systems managed to 2016 and by 60%
reduce backlogs by 2020

Eradication/reduc- The percentage 33 of 146 664 (households Universal access to 7 500 Universal access to 18 000 18000 in informal n/a 25% of 160 052 Awaiting a final
tion of infrastructure households with ac- in informal settle- solid waste removal solid waste removal areas households = 40 resolution from the
backlogs cess to basic levels of ments – 44 162 34 ) by 2011 84,6% of households by 2011 (72 000 (Reduce the backlog 000 households in Council regarding
solid waste removal (households provided with access to over the next five of 102 502 by 18 informal settlements 85/240 ℓ containers
(NKPI) with skips and refuse basic or higher waste years) 000)
removal by plastic removal services
bags – 102 502)
90% households in
formal areas with ac-
cess to full (kerb-side)
waste removal 35

36% in informal
areas have weekly
refuse removal 36

33 34 35
For the 2007/08 financial year the total number of households in the City of Tshwane is estimated at 686 640 as per StatsSA Community survey 2007. City of Tshwane annual report 2005/06, p 187. HSRC, 2006. Tshwane citizen report card
36
survey. HSRC, 2006. Tshwane citizen report card survey

City of Tshwane Annual Report 2008/2009 //

CHAPTER FIVE: Strategic Objectives

pg 217

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 KPA KPI Backlogs Five-year programme Achieved 2006/07 Five-year programme 2007/08 annual IDP/ 2007/08 SDBIP 2007/08 adjustments Actual 2007/08 Comments on vari-
target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to

Annual Report v2.indd 218

improve performance

Provide quality infra- Provision of infra- Provide infrastructure The infrastructure Provide infrastructure See details for each function below

pg 218
structure for growth structure per type that meets growth prioritised to deliver that meets growth

//
as a proportion to demands and prevent on the new demand demands and prevent
new demand/need the creation of new for services in the city the creation of new
(growth) backlogs 37 was the following: backlogs

- Electricity
- Housing top
structures
- Waste service points
- Parks
- Water infrastructure
- Roads
- Stormwater drain-
age
- Sewer infrastructure

Provide 11 131 new Electricity Provide 11 131 new 2 100 4 629 (projected n/a 6 375 Provided by private
CHAPTER FIVE: Strategic Objectives

City of Tshwane Annual Report 2008/2009

electricity infrastruc- 6 305 infrastructure electricity infrastruc- growth for house- developers
ture developments developments were ture developments holds requiring full
per projected annual added to the network. per projected annual services)
growth growth
3 839 of these were
provided by private
developers.

Provide quality infra- Provision of infra- Provide 10 000 top Could not be KPA removed owing to insufficient resources
structure for growth structure per type structures per annum achieved owing to
as a proportion to per projected annual resource constraints.
new demand/need growth Focus on the eradica-
(growth) tion of backlogs first
as approved in the
second quarter report
of 25 January 2007

37
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 the second quarter organisational performance report, Annexure A 1.2.2), rather than providing infrastructure for growth,
owing to resource constraints. This decision specifically relates to Housing but will consequently impact on Water and Sanitation, Electricity and the other infrastructure departments.

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Annual Report v2.indd 219
KPA KPI Backlogs Five-year programme Achieved 2006/07 Five-year programme 2007/08 annual IDP/ 2007/08 SDBIP 2007/08 adjustments Actual 2007/08 Comments on vari-
target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to
improve performance

Provide quality infra- Provision of infra- Provide 112 294 Waste service Provide 54 000 new 16 000 16 000 n/a 11 830
structure for growth structure per type new waste service Total of 13 078 waste service points
as a proportion to points 38 new service points over the next five
new demand/need provided, excluding years
(growth) 85 ℓ containers which
were none.

Installation of bulk 1000 km of water Water infrastructure 35 990 m of bulk 43 453 m 19244 m 45453 m 19 244 m See the footnote for
water pipelines (m) pipes provided for Water: 110,7 km water pipelines details 40.
growth bulk water and
(new, upgrading and water network pipes
replace) provided

Installation of internal 1 000 740 m 355 002 m 317 386 m 355 002 m 317 386 m See the footnote for
water network pipe- details 41.
lines (m)

(new, upgrade and

replaced)

38 41
Baseline is 715 356 service points with about 3% annual growth Various projects contribute to this KPI:
710023: Planned 7200 m – actual 8092 m, construction was accelerated.
40
Various projects contribute to this KPI: 710025: Planned 2500 m – actual 7060 m, construction was accelerated.
710308: Planned 7863 m – actual 4745 m, owing to excessive rock, high ground water levels. 710026: Planned 27390 m – actual 37525 m, construction was accelerated.
710383: Planned 4000 m – actual 3630 m, pipeline overestimated. 710031: Planned 3300 m – actual 1230 m, project schedule amended owing to Vodacom installing cables in the area.
710391A & 710392A: Planned 8100 m – actual 0 m, R22 m DWAF funds spent on network refurbishment. 710390: Planned 128000 m – actual 113886 m, excessive ground water affected progress.
710393A: Planned 573 m – actual 0 m, legal process with road reserves caused delay. 710391A: Planned 52000 m – actual 247969 m, construction started late because contractor was committed to another project.
711328B: Planned 1200 m – actual 840 m, delay in pipe delivery. 710392A: Planned 20380 m – actual 30515 m, contractor ahead of schedule.
711328C: Planned 3400 m – actual 0 m, delay in pipe deliveries and national steel shortage. 710878B: Planned 1000 m – actual 0 m, delays owng to the procurement process.
711331: Planned 1330 m – actual 0 m, late appointment of consultant by Rand Water. 710878F: Planned 9000 m – actual 18383 m, initial delay owing to extensive rain, construction was accelerated.
711332: Planned 4500 m – actual 0 m, delay owing to contractor not having the required CIDB grading. 711410: Planned 4000 m – actual 4581 m, construction accelerated.
711335A: Planned 1800 m – actual 2950 m, work accelerated. 711533: Planned 92982 m – actual 60488 m, pipeline to be installed was overestimated.

City of Tshwane Annual Report 2008/2009 //

711335C: Planned 4100 m – actual 0 m, delay owing to lengthy procurement process and steel shortage. 712527: Planned 1500 m – actual 1495 m, project ahead of schedule.
711338: Planned 2700 m – actual 2573 m, excessive rock and GDACE authorisation. 712528: Planned 1500 m – actual 3216 m, construction was accelerated.
CHAPTER FIVE: Strategic Objectives

711339: Planned 1000 m – actual 1574 m, backlog of previous year eradicated. 712594: Planned 1500 m – actual 1966 m, project ahead of schedule.
711340: Planned 2687 m – actual 2932 m, delay in GDACE authorisation in previous year. 712596: Planned 3000 m – actual 39801 m, construction was accelerated.

pg 219

2009/06/04 09:24:22 AM
 KPA KPI Backlogs Five-year programme Achieved 2006/07 Five-year programme 2007/08 annual IDP/ 2007/08 SDBIP 2007/08 adjustments Actual 2007/08 Comments on vari-
target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to

Annual Report v2.indd 220

improve performance

Increase reservoir 99 Mℓ 0 Mℓ 0 Mℓ 0 Mℓ 0 Mℓ Project preplan-

pg 220
capacity (megalitres) ning and no actual

//
construction planned
for 2007/08.

Provide quality infra- Provision of infra- Provide 70 km of new Roads Provide 70 km of new 12.4 23.9 km of roads for 21.83 km 51. 7 km Township developers
structure for growth structure per type road for growth road for growth. growth completed more work
as a proportion to 37,5 km of roads for than expected owing
new demand/need growth to the boom in the
(growth) economy.

Provide 28 km of new Stormwater drainage Provide 28 km of new 4.4 7.8 km of stormwater 19.7 km 35 km Township developers
stormwater drainage Stormwater drainage completed more work
systems 34.48 Km of storm- systems than expected owing
water drainage for to the boom in the
growth provided economy.

Length (m) of bulk Provide 1500 km of Sewer infrastructure Increase sewer 7 523 m 6 597 m 7 523 m 6597 m upgraded. Various projects
sewer pipelines sewer pipes to cater infrastructure from contribute to this KPI.
CHAPTER FIVE: Strategic Objectives

for growth Sanitation: 31,08 2006/07 - 2012 to: The department 0 new See footnote 42.

City of Tshwane Annual Report 2008/2009

(new, upgrade and km bulk sewer and changed this to
replace) sewer network pipes 22 374 m bulk sewer 1507– it is not clear
provided pipelines where this target
comes from

Length (m) of internal Increase sewer 61 268 m 47 425 m 61 268 m 0 new Various projects
sewer network pipe- infrastructure from contribute to this KPI.
lines (m) 2006/07 - 2012 to 47 425 m upgraded See footnote 43.
415 628 m internal and replaced
(new, upgrade and sewer network
replace) pipelines

Increase waste water 380 Mℓ/d Increase sewer 20 Mℓ/d 0 Mℓ/d 20 Mℓ/d 0 Mℓ/d Increase in capacity
treatment capacity infrastructure from planned for the end
(megalitres) 2006/07 - 2012 of the 2007/08
to 35 Mℓ/day waste financial year, is
water delayed to July
2008 owing to civil
contractor not being
on schedule. Full
penalties paid by civil
contractor.

42 43
710007: Planned 1500 m – actual 1266 m, delay owing to heavy rain. 710010A: Planned 300 m – actual 0 m, rescheduled owing to a lack of funding.
711528: Planned 2100 m – actual 914 m, pipes to be installed overestimated. 710753: Planned 17148 m – actual 28003 m, excessive rock and groundwater conditions.
712121: Planned 2416 m – actual 4417 m, project ahead of schedule. 710878: Planned 28800 m – actual 0 m, delay with site layout, project rescheduled.
711404: Planned 10260m – actual 12373 m, initial delay owing to GDACE, construction was accelerated.
711528: Planned 4080m – actual 6369 m, pipes were underestimated.
711526: Planned 680 m – actual 680 m, project had to be rescheduled, new contractor was appointed.

2009/06/04 09:24:28 AM
Annual Report v2.indd 221
KPA KPI Backlogs Five-year programme Achieved 2006/07 Five-year programme 2007/08 annual IDP/ 2007/08 SDBIP 2007/08 adjustments Actual 2007/08 Comments on vari-
target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to
improve performance

Ensure maintenance Percentage expendi- Expenditure on infra- Repairs and Expenditure on 9.24% 10.93% 9.24% 16%
of existing infra- ture on infrastructure structure maintenance maintenance to total infrastructure has
structure maintenance (R) is in line with national operating income increased to 14% by
norms and standards 9,13% 44 2011
by 2011
R725 763 000

Ensure that resources Percentage unac- Percentage unac- WATER: Reduce unaccounted 26,9% 27,9% 26,9% April 2008: UAW is calculated
are used optimally counted for water counted for water 27,8% for water to 26% 27,9% retrospectively (about
losses to be in line in 2011 (about 1% three months lag).
with internationally reduction per year) 45 Reduction of 1%
accepted benchmarks a year until such
by 2011 time that the billing
information on SAP
has been stabilised.
The division is imple-
menting the Water
Loss Management
Strategy.
Further details in
footnote 46

Ensure that resources Percentage unac- Percentage unac- ELECTRICITY: Reduce unaccounted 9% 9% departmental n/a 9,5% Data on electricity
are used optimally counted for electricity counted for electricity 8,36% for electricity in line target sales is only available
losses to be in line with internationally up to mid-May 2008
with internationally accepted benchmarks and therefore a
accepted benchmarks projected figure for
by 2011 unaccounted electric-
ity is included

Optimise labour Number of service By 2011 all labour- All infrastructure By 2011 all labour- Public Works and No corporate target n/a Water and Sanitation: Delays and the
intensity and com- delivery initiatives with intensive initiatives of departments achieved intensive initiatives of Infrastructure Devel- 27.84% underestimation of
munity involvement local labour content the City of Tshwane 100% the City of Tshwane opment: 40% total labour needed
as a proportion of should have 90% should have 90% Electricity: 100% for construction has
the total local labour Details in footnote 47 local labour Water and Sanitation: affected the planned
30% Roads and Stormwa- percentages.

City of Tshwane Annual Report 2008/2009 //

ter: 100%
Electricity: 40%
CHAPTER FIVE: Strategic Objectives

44 45
Information according to Finance Department report dated 27 July 2007 on the provisional financial statements. The percentage reduction in UAW on an annual basis is revised to 1% until such time that the billing information on SAP has been
46
stabilised as resolved in accordance with the special report to the City Manager dated 20 April 2007. The baseline was, however, 26% and becomes 29,8% on a recalculation. The normal schedule for the calculation of UAW is as follows, say for month

pg 221
47
x: Receive the data middle of month x+1 Data analysis about one week. IMQS population about one week. Therefore data update on IMQS first week in month x+2. Implementation of the Water Loss Management Strategy. Eight of the ten
capital projects initiated at Wonderboom Airport were done with a large contingent (50% to 80%) of local labour.

2009/06/04 09:24:33 AM
 KPA KPI Backlogs Five-year programme Achieved 2006/07 Five-year programme 2007/08 annual IDP/ 2007/08 SDBIP 2007/08 adjustments Actual 2007/08 Comments on vari-
target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to

Annual Report v2.indd 222

improve performance

Leverage growing The number of initia- All City of Tshwane See footnote 49 All initiatives led by All initiatives led by Increase the number n/a Automotive sector The ICT, Logistics

pg 222
and strategic sectors tives (including capi- local economic initia- the City of Tshwane the City of Tshwane annually. Focus on, support report Hub and Bio-Tech

//
in the city in a way tal projects) led by tives should focus on should focus on should focus on ICT, Biotechnology, clusters were trans-
that optimises invest- the City of Tshwane growing and strategic growing and strategic growing and strategic aerospace village ferred to Agriculture
ment opportunities that focus on strategic sectors with strategic sectors by 2008 sectors by 2008 and Environmental
and focuses on estab- and growing sectors partners by 2008 Management, Public
lishing an integrated as a proportion of See footnote for Works and Infrastruc-
economy the total details 48 ture and the Office of
the Chief Information
Officer. There is
ongoing consultation
between LED and the
above department.

Percentage growth in 6% growth of GVA51 The GVA per 6% growth in the 6% 6% n/a 5,9% According to Global
the City of Tshwane per annum capita for the City of City of Tshwane GVA Insight, the GVA in
50
GVA Tshwane in 2006 was 2007 was R157,741
R48 399. billion and the GVA
CHAPTER FIVE: Strategic Objectives

City of Tshwane Annual Report 2008/2009

growth rate for 2007
The City of Tshwane was 5,9% at current
achieved 7,8% prices
GVA growth for the
period 2006-2007
according to Global
Insight 52

48
The sectors where the City of Tshwane can influence growth directly are: knowledge-intensive industries; information and communications technology; biotechnology; electronics; advanced materials ; manufacturing; defence spin-off technologies; aero-
49
space cluster; automotive cluster; logistical cluster; urban agriculture; tourism; 2nd economy. Smart City initiative with the Office of the Executive Mayor, Electricity, City Planning and IMD; Information and Communications ( ICT SECTOR with IMD and
City Planning); Biotechnology (Bio-tech Sector with Agriculture); Automotive cluster (Auto sector with Infrastructure and Public Works, City Planning); Aerospace cluster; The entire Wonder-boom Airport capital budget was earmarked to influence growth of
the Aerospace cluster. The Economic Development Department had 12 approved capital projects of which the sectors focused on were as follows: 7 on urban agriculture; 2 on the second economy; 2 on tourism (i.e. 11 out of 12 projects focused on growing
50 51
and/or strategic sectors) Page 180 of cities network 2004- The percentage growth of GVA (gross value added) in Tshwane (2002) was 5%, but its contribution to National GVA for 2002 was 10%. These are 2 separate measures. GVA = GDP- taxes
52
on products + subsidies on products. Therefore GVA =(C+I+G+(X-M)) - Tc+ TPc. Information provided by the Economic Development Department for the fourth quarter report

2009/06/04 09:24:37 AM
Annual Report v2.indd 223
KPA KPI Backlogs Five-year programme Achieved 2006/07 Five-year programme 2007/08 annual IDP/ 2007/08 SDBIP 2007/08 adjustments Actual 2007/08 Comments on vari-
target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to
improve performance

Decrease in the Gini Decrease Gini The household Gini- Decrease in the Gini Decrease in the Gini 0.56 (Reduction of n/a 0.63 The target of 0.1
coefficient coefficient by 0.1 coefficient was: co-efficient by 0.1 pa co-efficient by 0.1 0.01) in the five-year
p/a (baseline (0.75) per annum programme was
55
(2001) 0.57 for the City erroneous and
of Tshwane in 2006 unachievable – it was
The household Gini- meant to be 0.01
54
coefficient (PDG The Gini in South
method) as used Africa for the same According to Global
by the SACN was period was 0.64. Insight the average
0.72 for the City of Gini for the City of
Tshwane in 2005. This means that Tshwane is 0.63
the City of Tshwane (as follows: blacks
Other methods in achieved greater (0.61); whites (0.44);
use, for example equality between the coloureds (0.52) and
Global Insight show highest paid and low- asians (0.54).
the Gini around est paid individuals,
0.64 for South as compared with the
Africa in general and country as a whole.
0.59 for Gauteng
Province (that is, for
individuals)

Invest in economic Hours in the day Reduce the time to 66,5 minutes for Reduce time to travel Review the City of Reduce travel time to n/a Appoint service Procurement delayed
infrastructure and a travelled between travel between homes all service providers between homes and Tshwane policy and 65 minutes average provider to do Status went out on tender 2x
transport system that home and work and work in line with and all transport in work in line with implement electronic Quo investigation
promotes greater Gauteng province the city Gauteng province ticketing The survey further
efficiency regarding targets and in targets and in The draft Tshwane indicated that 30,4%
56
logistics, and opti- partnership with key partnership with key Household survey of respondents do not
mise the productivity roleplayers roleplayers indicates that: 11,8% travel to get to work
of human capital by of individuals spend or school and that
reducing travelling less than 10 minutes 36,4% of respondents
time between home to access public do not use public
and work transportation transport.

8,1% spend 10-20

minutes;

City of Tshwane Annual Report 2008/2009 //

4,8% spend 20-30
CHAPTER FIVE: Strategic Objectives

minutes and 2,8%

spend 30-40 minutes

pg 223
54 55 56 57
The nearer to 1 the more unequal a society is. The closer the Gini-coefficient moves to 1 the more unequal the income distribution. Global insight report as provided by the Economic Development Department for the 4th quarter report. Done
by Market Research Solutions in commission of the City Planning Department.

2009/06/04 09:24:41 AM
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target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to

Annual Report v2.indd 224

improve performance

Regeneration and % of inner city regen- 80% of needs in 80% of needs in None None n/a - Commissioned Ur-

pg 224
development of eration compared terms of regenera- terms of regenera- ban Econ to develop

//
potentially viable eco- to the total need in tion of the inner city tion of the inner city a Business Retention
nomic nodes focusing terms of: achieved by 2011, in achieved by 2011, in and Attraction
on the inner city and a) businesses terms of: terms of: Strategy
targeted areas based b) open space a) businesses, a) businesses, - Entered into a
on efficient land use c) social infrastruc- b) open space b) open space partnership arrange-
ture c) social infrastruc- c) social infrastruc- ment with NWDC/
d) economic infra- ture ture AIDC to establish
structure d) economic infra- d) economic infra- enterprise incubators
e) historical buildings structure structure in Babelegi and Ga
e) historical build- e) historical build- Rankuwa
ings 57 ings 58 - The approved Inner
City Spatial Develop-
ment Framework
giving effect to four
planning precincts.
CHAPTER FIVE: Strategic Objectives

City of Tshwane Annual Report 2008/2009

- Signing of the MOU
with the Department
of Public Works on
Rekgabisa Tshwane
Project.
- Technical team on
the implementation
of the Lilian Ngoyi
Square
- Opening of the
Bloed Street taxi mall

Increase participation Number of SMMEs At least 8 000 20 were supported Develop and 10 (Electricity) 600 SMMEs devel- n/a 54 (Electricity)
and broaden the con- and/or cooperatives SMMEs and or coop- by Electricity support at least 8 oped
tribution in growing that empower black eratives by 2011, of 000 SMMEs and/ 1 600 (Economic 237 (FPM)
the city’s economy people, women and which 75% are to be 3 091 were sup- or cooperatives by Development) 300 SMMEs sup-
through the develop- the youth supported black person/women/ ported by Economic 2011 59 ported 55 (Agric and EM)
ment of SMMEs, and developed youth owned Development
cooperativecoopera- 300 Cooperatives 5(Transport Planning)
tives and the informal supported
sector 2007(LED)
30 Cooperatives
developed

57 58 59
Capital Theatre, Palace of Justice (Mandela holding cell), Synagogue Rivonia Trial. Capital Theatre, Palace of Justice (Mandela holding cell), Synagogue Rivonia Trial. Contribute to 2010 legacy projects through establishment of Fan Parks with
broadcasting rights, Tshwane Tourist memorabilia opportunities, Apply for selling rights & sponsorship rights from FIFA, Alternative transport opportunities e.g. Rickshaws (Tourism contribution).

2009/06/04 09:24:45 AM
Annual Report v2.indd 225
KPA KPI Backlogs Five-year programme Achieved 2006/07 Five-year programme 2007/08 annual IDP/ 2007/08 SDBIP 2007/08 adjustments Actual 2007/08 Comments on vari-
target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to
improve performance

Establish strategic Rand value of invest- The baseline for R106 million was Achieve at least R300 R150M No corporate target n/a About R713,9 million
partnerships to ensure ment in Tshwane as a current rand value invested in total m of investment in has been invested in
a focused common direct result of strate- should be determined Tshwane as a result of the Auto Sector
vision and good eco- gic partnerships in 2006 and then a strategic partnerships.
nomic governance target set
value system % of business in Tsh- 80% of business 45% of businesses 80% of business none none n/a 62% of Formal Annual perception
wane indicated that indicated satisfaction surveyed rated the indicates satisfaction Business rated City of survey – it was re-
the City of Tshwane’s with the City of City of Tshwane’s with City of Tshwane’s Tshwane’s efforts as solved that survey be
efforts to create an Tshwane’s efforts to efforts as ‘average’ efforts to create an average to good. done after comple-
enabling business create an enabling to ‘very good’ in enabling business tion of the ASD
environment have business environment creating an enabling environment by 2009 28% of Informal Busi- Regional Model
improved over the by 2009 environment for busi- nesses rated City of
past year ness development. 60 Tshwane as average Many indicators
62% of formal and to good. changed in the SDBIP
28% of informal to improve measur-
businesses ability of indicators.

Implement job The number of jobs Create at 5 000 100- LED Create at 5 000 5000 5000 formal jobs in n/a 40 000 62
creation initiatives created through a permanent jobs with 59000 61 permanent jobs with the economy
Municipality’s (local strategic partners per strategic partners per 30 (FPM)
economic develop- annum from initia- annum from initia- 20 (Agric and EM)
ment) initiatives, tives (LED),including tives (LED), including
including capital capital projects capital projects 1500 direct jobs
projects (NKPI) created in the auto
sector (LED) and
3300 indirect jobs to
be created

Create at least 3 663 – LED Create at least 552 (RandSW) None n/a 1385 (RandSW)
53000 short term 100 – Transport 53000 short term 509 (Water and 918 (Water and
jobs 63 from initiatives 143 – Agricultural jobs 64 (ie 10 600 per Sanitation) Sanitation)
(LED),including capi- trading annum) from initia- 10 (Transport) 120( Transport
tal projects (NKPI) 1730 - Water and tives (LED), including 600(Electricity) Planning)
Sanitation capital projects 60 (Agricultural 915 (Electricity)
832 - Roads and (NKPI) Trading) 85 (FPM)
Stormwater 1760 (Housing) 24 (Agric and EM) 4
802 – Electricity 45 WBA 112 (Housing) 140

City of Tshwane Annual Report 2008/2009 //

TOTAL: 7270 TOTAL: 3 536 (HSD)
30 (WBA)
CHAPTER FIVE: Strategic Objectives

8 (LED)
TOTAL: 7 737

pg 225
60 61 62 63
Marketing Surveys and Statistical Analysis (MSSA), 2007. Tshwane Business satisfaction survey. Source Global Insight (2008). Source Global Insight (2008) . Number of short term jobs created in the execution of projects (CoT Standard is 1
64
Job = 240 man days). Number of short term jobs created in the execution of projects (CoT Standard is 1 Job = 240 man days).

2009/06/04 09:24:49 AM
 KPA KPI Backlogs Five-year programme Achieved 2006/07 Five-year programme 2007/08 annual IDP/ 2007/08 SDBIP 2007/08 adjustments Actual 2007/08 Comments on vari-
target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to

Annual Report v2.indd 226

improve performance

Intercept the cycle of Departmental level No target Estimated 318 054 There is no city level indicator for the KPA – therefore it is not possible to report progress on the interception of poverty at this level. Refer to func-

pg 226
poverty by investing KPA h/ holds spend less tional reporting on projects and initiatives.

//
in human resource than R1200-00 per
development month. 65
programme that Number of essential Implement at least 6 Implement at least 2 (CSS) None n/a 1(SRAC) Operational indica-
optimise the wellness skills development ini- 1 community skills 1 community skills tors taken to the
and potential of our tiatives implemented development initiative development initiative 2 (HSD) 38 (Hand SD) departmental plans
people from birth in communities in per community per per community per from the 0708 year
throughout life partnership with key annum annum 210 community
role-players such as members trained (ED)
the SETA’s and in line
with the sector skills
plans

% of the population None None None None 224 256 or fewer n/a 47,6% (1 116 297) 148 915 households
living below R3000- households living of the population to be living on an
00 per annum in below the poverty line live on R3000 or less income of R4 800
constant 2000 rand per annum) – this or less per annum (
CHAPTER FIVE: Strategic Objectives

City of Tshwane Annual Report 2008/2009

is a total population 20,8% of the total
figure) (STATSA number of estimated
Community survey households (713
2007 estimate) 66 407) 67

Reduce the burden of % of households 100% of households For the financial year 100% of households 100% 65 097 households 20,7% (52000 47 774 households
poverty through an earning less than earning less than 2006/07 a policy earning less than (25,9%) divided by 251215) according to indigent
effective indigent pol- R1700 68 per month R1100 per month was in place ensuring R1700/m have register.
icy that enhances the with access to free have access to free free basic services access to free basic
access for all those basic services (NKPI) basic services (NKPI) (water, sanitation services (NKPI) 307 888 (15,5% of
who qualify and link and electricity) to all households) house-
indigent families to households in formal holds in the City of
targeted poverty al- areas. Tshwane earning
leviation programmes less than R1600 per
that would improve month 69.
household income

65 66 67
The StatsSA General Household survey for 2006. This is out of an estimated 626 011 households, i.e. 50,8% of households in the city. CS 2007 (Stats SA) indicates 19.4% (133 483 households) earning an income of R4800 or lower per annum.
68
The draft Tshwane Household survey done by Market Research Solutions in commission of the City Planning Department. Approximately twice the pension amount per month- and will change as pensions change. Therefore reporting will not be against
69 69
R1100 per month. According to the StatsSA 2007 community survey. According to the StatsSA 2007 community survey.

2009/06/04 09:24:53 AM
Annual Report v2.indd 227
KPA KPI Backlogs Five-year programme Achieved 2006/07 Five-year programme 2007/08 annual IDP/ 2007/08 SDBIP 2007/08 adjustments Actual 2007/08 Comments on vari-
target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to
improve performance

Reduce the burden of Percengage of house- 100% receive free 100% in the Tshwane All households that 100% in the Tshwane 65097 households n/a 70 000 customers 47774 from the
poverty through an holds earning less basic Electricity supply area. earn less than R1700 area of supply receive free basic including Eskom indigent register
effective indigent pol- than R1700 70 per receive free basic services areas
icy that enhances the month with access 31 611 of 42 337 services
access for all those to free basic services (77%) in Eskom sup-
who qualify and link (NKPI) ply areas
indigent families to % of households 100% receive free 90 000 households 100% receive free 100% receive free 65097 households n/a 100% 4 7774 from the
targeted poverty al- earning less than waste removal have access to free waste removal waste removal receive free basic indigent register
leviation programmes R1700 71 per month services basic services by services services services
that would improve with access to free the placing and
household income basic services (NKPI) emptying of 90 skips
in informal areas per
month

Of the 90 000
households 39 609
receive free plastic
bags

24, 75%

% of households 100% receive free 100% of formalised 100% receive free 100% receive free 65097 households n/a 47774 Indigent This applies to house-
earning less than basic water households receive basic water basic water receive free basic households receive holds registered on
R1700 72 per month free basic water services free basic water the indigent register
with access to free and achievement is
basic services (NKPI) 391,227 households 100% of informal based on the number
receive free basic settlements receive of households
water (Detailed de- water via JOJO registered.
partmental analysis) tankers

City of Tshwane Annual Report 2008/2009 //

100% of informal
settlements receive
CHAPTER FIVE: Strategic Objectives

water via JOJO

tankers

pg 227
70 71
Approximately twice the pension amount per month- and will change as pensions change. Therefore reporting will not be against R1100 per month. Approximately twice the pension amount per month- and will change as pensions change. There-
72
fore reporting will not be against R1100 per month. Approximately twice the pension amount per month- and will change as pensions change. Therefore reporting will not be against R1100 per month.

2009/06/04 09:24:57 AM
 KPA KPI Backlogs Five-year programme Achieved 2006/07 Five-year programme 2007/08 annual IDP/ 2007/08 SDBIP 2007/08 adjustments Actual 2007/08 Comments on vari-
target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to

Annual Report v2.indd 228

improve performance

% of households 100% receive free 100% in formal areas 100% receive free 100% receive free 65097 households n/a 47774 Indigent This is dependent on

pg 228
earning less than basic sanitation basic sanitation basic sanitation receive free basic households receive the registration of

//
R1700 73 per month services free basic sanitation indigent
with access to free
basic services (NKPI) 100% of informal
settlements have
access to chemical
toilets

Promote viable % of settlements 70% of settlements The Department 20% of all new 3% 83% To increase the
communities by es- close to economic close to economic reported that a total settlements close to measurability of this
tablishing mixed opportunities opportunities either of 27 applications for economic opportuni- (81 townships) indicator the follow-
human settlements through being development close to ties by 2011 ing is used:
closer to economic % of new settlements located there or by economic opportuni- ie 83% of 81 town-
opportunities with so- that are developed having opportunities ties were approved. ship applications
cial, cultural and eco- close to eco- developed in their were within 5 km of
nomic development nomic opportunities area 80% of these ap- economic opportuni-
programmes that (2007/08 IDP) plications were within ties) 74
CHAPTER FIVE: Strategic Objectives

City of Tshwane Annual Report 2008/2009

enable celebration 5 km of economic
of diversity and foster opportunities.
social inclusion. % community satis- 60% 60%+ n/a 87% of residents do According to Tshwane
faction with quality not consider reloca- Household survey
of life tion to another city.
Majority of Formal
Businesses expect
turnover to be higher
for the current finan-
cial year.
Majority of Informal
Businesses expect
turnover to remain
the same as 2006/07
year.

Decrease the vulner- Number of initiatives Implement a 1 (SRAC) 15 Implement a 5 1 (SRAC) n/a 1 (SRAC)
ability of targeted implemented that minimum of 100 (HandSD) minimum of 100 20 (HandSD) 245 (HandSD)
groups at risk through benefit vulnerable initiatives that benefit initiatives that benefit
mainstreamed groups vulnerable groups vulnerable groups
programmes for chil- by 2011 by 2011
dren, youth, women,
disabled and elderly

73 74
Approximately twice the pension amount per month- and will change as pensions change. Therefore reporting will not be against R1100 per month. “Close” is defined as within a 5 km radius. “Economic opportunity” is identified economic nodes
and corridors as per the Tshwane Spatial Development Strategy. It is proposed that the indicator be changed to: Number of new settlements developed / townships established within a 5 km radius of economic opportunities (nodes and corridors identified
in the Tshwane Spatial Development Strategy).

2009/06/04 09:25:01 AM
Annual Report v2.indd 229
KPA KPI Backlogs Five-year programme Achieved 2006/07 Five-year programme 2007/08 annual IDP/ 2007/08 SDBIP 2007/08 adjustments Actual 2007/08 Comments on vari-
target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to
improve performance

Promote a culture of Number of world 10 world class sports 6 events were held 10 world class sports 2 No corporate level n/a 4
competitive and pro- class sports events events by 2011 (ie 2 events by 2011 target
fessional sports activi- taking place in per annum)
ties and prepare the Tshwane
city to host the Africa
and World Soccer
cups in 2009 and
2010 respectively

Ensure the safety of % of residents in Tsh- 95% of residents The Residents’ and 95% of residents No specific annual No corporate target n/a No survey done Annual perception
our communities, wane that indicated surveyed by 2009 business satisfaction surveyed by 2009 target. survey – it was re-
businesses and roads that the Municipality’s indicated that the survey (2006) 75 indicated that the solved that survey be
through fostering a efforts to promote a Municipality’s efforts indicated that 57% of Municipality’s efforts done after comple-
culture of respect for safe environment by to promote a safe Business managers/ to promote a safe tion of the ASD
the rights of all enforcing laws have environment by owners and one environment by Regional Model
improved over the enforcing laws have third of households enforcing laws have
past year. improved over the reported seeing a improved over the
past year metro police officer past year
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.

75
City of Tshwane Customer Care Division 2006.

City of Tshwane Annual Report 2008/2009 //

CHAPTER FIVE: Strategic Objectives

pg 229

2009/06/04 09:25:05 AM
 KPA KPI Backlogs Five-year programme Achieved 2006/07 Five-year programme 2007/08 annual IDP/ 2007/08 SDBIP 2007/08 adjustments Actual 2007/08 Comments on vari-
target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to

Annual Report v2.indd 230

improve performance

Decrease the crime % reduction in resi- Achieve a decrease Not reported Achieve a decrease To be determined 10% n/a City of Tshwane:

pg 230
levels working with dential burglary of 1% below the of 1% below Gauteng -2.95%

//
the National Criminal Gauteng crime levels crime levels for Gauteng: -3.96%
Justice System, the % reduction in busi- per type of crime Not reported crimes identified as a 10% n/a City of Tshwane:
South African Police ness burglary priority in Tshwane +1,9%
Services, Business Gauteng: + 6.83%
and communities,
% reduction in vehicle Not reported 10% n/a City of Tshwane:
ensuring visible polic-
theft - 2,2%
ing and strengthening
Gauteng: - 4.12%
the municipal court
system % reduction in car Not reported 10% n/a City of Tshwane: +
hi-jacking 1.05%
Gauteng: +6,9%

% reduction in assault Not reported 10% n/a City of Tshwane: -

0.65%
Gauteng: +0.32%

% reduction in rape Not reported 10% n/a City of Tshwane:-

CHAPTER FIVE: Strategic Objectives

City of Tshwane Annual Report 2008/2009

4.85%
Gauteng: -3,3%

% reduction in public Not reported 10% n/a City of Tshwane:

violence - 1,1%
Gauteng: -2,3%

Promote a clean, % of uninsured 100% of uninsured 98% of households 100% of population 80% of households 100% n/a 100%
healthy and sustain- population who have population have have access to PHC have access to with an access to
able environment and access to municipal access to municipal within a radius of municipal health PHC within a radius
reduce the burden of health services (as a health services 5 km. services of 5 km
preventable diseases factor or availability
on our people and of clinics, health care
our economy includ- practitioners and
ing Chronic illnesses, essential drugs)
TB, HIV and Aids. % of uninsured 100% of uninsured 98% 100% 98% 98% n/a 98%
population with ac- population have ac-
cess to personal PHC cess to personal PHC
services services

2009/06/04 09:25:09 AM
 KPA KPI Backlogs Five-year programme Achieved 2006/07 Five-year programme 2007/08 annual IDP/ 2007/08 SDBIP 2007/08 adjustments Actual 2007/08 Comments on vari-
target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to
improve performance

Ensure that the The preparedness of City of Tshwane is The department City of Tshwane has 1 level 2 plan No corporate target Upgrade to level Level 2 DRM plan

Annual Report v2.indd 231

city has a disaster City of Tshwane to prepared for 70% of achieved a score of documented a Disas- 2 plan developed
prevention and prevent and manage possible disasters in 129% which means ter Risk Management
management plan a disaster or emer- line with the disaster that it had over Plan (on 3 levels) Draft DRM Frame-
as well as optimal gency as reflected management plan, achieved against its with responsibili- work approved
capacity to respond in interdepartmental and 90% prepared targets for the finan- ties identified and
to emergencies. cooperation struc- for emergencies in cial year against the contingency planning
tures, availability of terms of the emer- index for prepared- implemented by all
people, procedures, gency management ness for emergencies departments and
equipment and plan. and disasters. entities
information per type
of emergency and
disaster.

Number of com- 48012 53 637 48012 88% of fire incidents 12 000 n/a 60 915 76
munity safety and life responded to, 87% of (ambulance services)
threatening incidents specialised and hu-
responded to per manitarian requests Fire Brigade
annum and 2700 hazardous
substance activities (All incidents 12 276)

Optimise effective Number of initiatives The number of initia- 1 induction pro- Complete implemen- No SDBIP target The ward committees
community par- implemented to tives implemented gramme tation of initiatives are being reimbursed
ticipation in the ward strengthen ward com- is in line with needs for the out of
committee system mittees identified 2 Housing Consumer pocket expenses is
by strengthening education workshops being paid out to all
the capacity and for councillors and members after every
effectiveness of the ward committees formal meetings and
ward committees activities of public
to support the ward participation.
councillors’ capacity
to engage in sectoral
activities.

Strengthen ward % of ward com- 100% of ward com- 7 out of 76 wards not 100% of ward com- 100% 100% n/a 99% 75 of 76 wards
committees capacity mittees functioning mittees fulfilling their fully functional mittees fulfilling their functional. 1 ward
to engage in sectoral actively performing functions functions committee officially
activities linked to the functions of ward 92,8% of ward declared unofficial
the national, pro- committees in the committees function and therefore did not
vincial and city-side system of participa- actively. perform. (Citizens
programmes through tory democracy Scorecard Survey).
amongst others

City of Tshwane Annual Report 2008/2009 //

the support of the Footnote for ad-
involvement of the ditional notes 77
CHAPTER FIVE: Strategic Objectives

Community Develop-
ment Workers (CDW)
programme.

pg 231
76 77
This figure includes the patient head count + the selective standby services. Business Satisfaction reported that 83% of Informal and 85% of Formal Businesses are Un/aWARE of the ward committee. 80% Informal and 84% Formal Businesses are Un/
aWARE of their ward councillor. 92% Informal and 93% Formal Businesses are Un/aWARE of the councillors’ role and function. Tshwane Survey indicated that 58% of residents do not know their ward councillor and less than 30% participated in ward commit-
tee meetings.

2009/06/04 09:25:14 AM
 KPA KPI Backlogs Five-year programme Achieved 2006/07 Five-year programme 2007/08 annual IDP/ 2007/08 SDBIP 2007/08 adjustments Actual 2007/08 Comments on vari-
target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to

Annual Report v2.indd 232

improve performance

Entrench a customer Number of service All areas of service A norms and All areas of service Establish norms and 100% compliance n/a CRM: 23 walk-in CRM had a specific

pg 232
focused approach to delivery areas that delivery comply by standards document delivery comply by procedures for service centres have imple- target of Implementa-

//
citizenry and business comply with Batho 2010 has been submitted 2010 delivery areas mented with 4 centres tion strategy on
by setting standards Pele norms and for approval by the with Batho Pele norms and standards
that we achieve standards Customer Care 18 walk-in centres operating procedures by 3rd quarter
guided by the Batho Division. have implemented namely Akasia, Cen-
Pele principles Batho Pele operating turion, Soshanguve
Report of the Office procedures and Munitoria.
of the Municipal
Manager: Setting 4 City Planning
Customer Care
Service Standards 11 Electricity
was approved by the
Municipal Manager
on 22 May 2007.

Entrench a customer % of quality standards Reduce customer Not reported None CRM: 90% of 85% n/a 91% (CRM)
focused approach to achieved in terms complaints relating to complaints handled
CHAPTER FIVE: Strategic Objectives

City of Tshwane Annual Report 2008/2009

citizenry and business of response times to CTMM responsive- immediately 90% of complaints
by setting standards customer requests/ ness by 5% per handled immediately
that we achieve complaints annum and (Customer Care)
guided by the Batho
Pele principles 95% of complaints
responded to within
14 days by 2011

Water: Water: Water: Water: Water: Target achieved.

75% in 48 hours 75% in 48 hours 75% in 48 hours 75% in 48 hours 75% in 48hrs

Sanitation: Sanitation: Sanitation: Sanitation: Sanitation: Severe pipe break-

80% in 8 hours 80% in 8 hours 80% in 8 hours 80% in 8 hours 75% in 8 hrs ages on large diam-
eter pipes took longer
than 48hrs to repair.
Lack of appropriate
materials and skilled
staff caused delays.

No target No target Electricity NRS 04778: n/a 100%

100%

No target No target No target Electricity NRS 04879: n/a 76%

80%

78
NRS 047 standards are regulating electricity supply quality of services. NRS 047 sets the standard for processing of requests for supply, revenue management, repair of customer faults, frequency and repair of network faults, the handling of consumer
79
complaints, provision and maintenance of street lighting and consumer education. NRS 048 sets the technical standards to which suppliers should adhere.

2009/06/04 09:25:18 AM
Annual Report v2.indd 233
KPA KPI Backlogs Five-year programme Achieved 2006/07 Five-year programme 2007/08 annual IDP/ 2007/08 SDBIP 2007/08 adjustments Actual 2007/08 Comments on vari-
target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to
improve performance

Ensure access by % key issues con- Achieve 100% Not reported Achieve 100% n/a n/a IDP consulted on The 0708 SDBIP
communities and sulted on with com- consultation per key consultation per key needs id and draft was developed on
stakeholders to the munity members in issue issue IDP. Report on the the changed City
system of petitions formal participatory changes to the city scorecard.
and ensure its processes before key scorecard as per
responsiveness and decisions the SDBIP sent to
efficiency Council. MTEF
consulted on.

Good governance The% of residents of 95% of City of The Tshwane’s Resi- 95% of City of No target No Corporate level n/a 15,4% of respon- CRM did not con-
Tshwane who have Tshwane residents dents and Business Tshwane residents target defined for the dents were dissatis- duct the perception
indicated that City of surveyed indicated satisfaction survey for surveyed indicated year in the SDBIP. fied with accuracy survey due to ASD
Tshwane governs well that City of Tshwane May 2007 80 indi- that City of Tshwane and correctness of processes, however
governs well cated the following. governs well monthly accounts on the draft Tshwane
See footnote : 81 the 10-point scale Household survey
done by Market
43,9% of respondents Research Solutions
dissatisfied. in commission of the
City Planning Depart-
38,4% satisfied. ment was used.

A city wide perception

survey will be done
in the new financial
year.

Good governance Audit qualifications to CTMM achieves 2006/07 financial City of Tshwane No qualifications No qualifications n/a 0708 information not
the annual report unqualified audits statements qualified achieves unqualified yet available.
in 6 areas. See foot- audits annually
note for details. 82 Awaiting AG feed-
back by 31 Dec 08.

City of Tshwane Annual Report 2008/2009 //

80 8%
City of Tshwane. Customer Care Division. 2007 (Research report for the City of Tshwane Metropolitan, June 2007, page 98). 81 Less than half (46%) of total sample (n = 1200) felt that the CoT is doing a good job in delivering the service needed.
82
(Eight percent) of business respondents and 4% of households claim 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 a bribe. Property, plant &
CHAPTER FIVE: Strategic Objectives

equipment; Creditors; Material losses, fruitless & wasteful expenditure; Provision for rehabilitation of landfill sites; Assessment rates & property values disclosed; RSC levies.

pg 233

2009/06/04 09:25:23 AM
 KPA KPI Backlogs Five-year programme Achieved 2006/07 Five-year programme 2007/08 annual IDP/ 2007/08 SDBIP 2007/08 adjustments Actual 2007/08 Comments on vari-
target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to

Annual Report v2.indd 234

improve performance

Good governance Number of days No target No report No target No target 6 working days n/a The department indicates that reporting on

pg 234
taken before ap- this is impossible. Resolutions of meetings are

//
proved minutes of finalised four days after the meeting and dis-
meetings are finalised tributed to departments. Minutes of meetings
and distributed are approved at the subsequent meeting and
only distributed on request.

Good governance Number of judgments Decrease the legal Not reported Decrease the legal 25% Reduce by 5% n/a Total: Claims and collec-
against the City of claims against the claims against the Judgements against tions:
Tshwane Municipality by 1,5% Municipality by 1,5% = 11, judgements Judgements against
per annum per annum = 5, judgements
for = 30, settlements
= 43 for = 5, settlements
= 32

Litigations:
Judgements against
= 6, judgements
CHAPTER FIVE: Strategic Objectives

City of Tshwane Annual Report 2008/2009

for = 25, settlements
= 11

Number of City of All municipal-owned 100% of Council All municipal-owned 8 All municipal 85% n/a 85% Departmental target
Tshwane buildings buildings are compli- owned buildings for buildings are compli- properties structurally reported in Depart-
compliant with ance with the OCHSA which the Building ance with the OCHSA analysed Akasia Buildings Akasia Buildings: mental Annual report:
building regulations and City of Tshwane Maintenance Section and City of Tshwane 100% 96% “70% of Properties
as a proportion of building regulation is responsible building regulation that Building Main-
total City of Tshwane by 2011 by 2011 tenance Section is
owned buildings responsible for”

Funds insufficient for

100% compliance
in the 2007/08
financial year

R operating cost per No target R126 400 n/a No target R126 400 Not reported Not reported Not reported
fleet vehicle owned by
the City of Tshwane

R operating cost per No target R 175 800 n/a No target R 175 800 Not reported Not reported Not reported
fleet vehicle leased by
the City of Tshwane

2009/06/04 09:25:27 AM
Annual Report v2.indd 235
KPA KPI Backlogs Five-year programme Achieved 2006/07 Five-year programme 2007/08 annual IDP/ 2007/08 SDBIP 2007/08 adjustments Actual 2007/08 Comments on vari-
target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to
improve performance

Number of depart- 100% Compliance 20% no target no target No defined target 87% 60%
ments compliant to with National Ar-
the National Archives chives Act by 2010
act as a proportion of
all Departments

Sustainability man- % of municipal debt Reduce municipal 75% Reduce municipal 74% over 90 days No SDBIP target n/a 73,6% (provisional
agement over 90 days debt over 90 days debt over 90 days figure period 12)
from 78% to 68% by from 78% to 70%
2011. by 2011

Efficiency gains in A comparison of ex- Cost of remuneration A comparison of ex- none none n/a Total size of org
Rand value due to penditure before and financial 2006/07 = penditure before and structure 2005/6: 19
the implementation after implementation R2 412 004 371 after implementation 813 (filled 12979)
of alternate service of alternate service of alternate service (65%)
delivery mechanisms delivery mechanisms (12 331 positions delivery mechanisms
shows savings by filled) Average sal- shows savings by (R2 369 366 000)
2011 ary per employee = 2011
R196 604.92 per Total size of org
annum) structure 2006/07:
20 170 (growth in
number of positions:
1,8%) (filled 12331)
(61%)

(R2 412 004 371)

Total size of org

structure 2007/08:
20 170(filled 12939)
(64%)

(R2 593 391 088)

Average salary per

employee = R200

City of Tshwane Annual Report 2008/2009 //

432.11 per annum

Remuneration as In line with Restructur- 27.97% In line with Restructur- 21,9% 21,9% n/a 28%
CHAPTER FIVE: Strategic Objectives

a percentage of ing Grant targets ing Grant targets

the total operating (ie 28%) (ie 28%) All projections

pg 235
budget achieved as per
MTREF

2009/06/04 09:25:31 AM
 KPA KPI Backlogs Five-year programme Achieved 2006/07 Five-year programme 2007/08 annual IDP/ 2007/08 SDBIP 2007/08 adjustments Actual 2007/08 Comments on vari-
target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to

Annual Report v2.indd 236

improve performance

Prudent financial Financial viability as The financial viability 8 84 The financial viability 12.9 All projections 7.5 7.3

pg 236
management expressed by: is to be achieved in is to be achieved in achieved as per

//
terms of the restruc- terms of the restruc- MTREF
i. A=(B-C)/D 83 turing grant targets turing grant targets
12.9

Financial viability as 23,7% 18,9% All projections 17% 27,2%

expressed by: achieved according
to the MTREF
ii. A=B/C 85 (NKPI)
18,9%

Financial viability as Cost coverage of 0.9 The financial viability 1.2 1.2 0.7 0.7
expressed: is to be achieved in
terms of the restruc- All projections
iii.A=(B+C)/D86 turing grant targets achieved according
(NKPI) to the MTREF

Prudent financial Number of financial No specific target No consolidated No specific target No specific target All financial targets n/a 12 out of the 17 There are 17 KPI’s 89
CHAPTER FIVE: Strategic Objectives

management targets as projected report according to the indicators 87 were of which nine are in

City of Tshwane Annual Report 2008/2009

per 2007/08 MTREF MTREF achieved achieved or advanta- accordance with the
achieved geous in financial RG agreement and
terms 88 for the City of three are regulated 90
Tshwane – eg Interest
paid was lower than
projected

Percentage of a The percentage of the 85,9% 91 The percentage of the 95% 98% n/a 85% Provisional figure
Municipality’s capital budget spent is in line budget spent is in line (period 12)
budget actually spent with the restructuring with the restructuring
on capital projects grant conditions with grant conditions with
identified for a 99% achieved by 99% achieved by
particular financial 2009 2009
year as per the IDP
(NKPI)

83 84
A= Debt coverage, B= total operating revenue received, C= operating grants, D= debt service payments due within the financial year. Financial viability figures for the NKPI taken form the Finance Department 2nd provisional report to Mayoral Com-
85 86
mittee. A= outstanding service debtors to revenue , B= total outstanding service debtors, C= annual revenue actually received for services. A= cost coverage, B= all available cash at a particular time, C=investments, D= monthly fixed operating
87 88
expenditure. Achievements were calculated from the Adjustments Budget targets. When the City of Tshwane does not spend the projected amount of Capex, it will impact positive on its finances because less money will be borrowed and less money
89 90
will be paid for interest and loan repayments. This will, however, impact negatively on service delivery targets such as connections made or bulk infrastructure constructed. See Finance functional report for details. DPLG R796 August 2001.
91
Finance Department 2nd Provisional report 27 June 2007.

2009/06/04 09:25:35 AM
Annual Report v2.indd 237
KPA KPI Backlogs Five-year programme Achieved 2006/07 Five-year programme 2007/08 annual IDP/ 2007/08 SDBIP 2007/08 adjustments Actual 2007/08 Comments on vari-
target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to
improve performance

Local government
responsiveness to
residents

Percentage of resi- 80% of residents sur- Respondents to the 80% of residents One perception No corporate level n/a Tshwane Household Annual perception
dents surveyed who veyed annually indi- Tshwane residents’ surveyed annu- survey target for the year survey on conducted. survey – it was re-
indicated satisfaction cate they are satisfied and business ally indicate they Currently serving at solved that survey be
with City of Tshwane with City of Tshwane satisfaction survey are satisfied with the At the operational the Cluster. done after completion
responsiveness responsiveness 2006 rated the city’s response from the level a survey was of the ASD Regional
92
responsiveness at City of Tshwane to be conducted Tshwane Survey Model.
49,8% towards assessing the indicated that 60% of
achievement of the residents are satisfied
22% of respon- five-year target. with the current
dents to the above changes. Business
survey have lodged Satisfaction survey
complaints during the indicated that 38% of
previous 12 months cases were resolved
of which 79% felt that fully and 25%
their complaints have partially.
not been dealt with
satisfactorily

Performance monitor- The degree to which Improve service See footnote for Improve service n/a n/a n/a n/a This indicator was
ing and evaluation City of Tshwane delivery such that all details 93 delivery such that all not measurable and
programmes, projects programmes, projects programmes, projects therefore not taken
and initiatives and initiatives make a and initiatives make a up into the SDBIP
respond to the needs positive impact on the positive impact on the for 0708, and will
and priorities of its communities as per communities as per therefore not be
communities their identified needs their identified needs reported on.
and priorities and priorities

Ensure cooperative Degree of integration Achieve full integra- All Critical National Achieve full integra- All critical as identi- 3 programmes n/a 3 (Housing) Projects are
governance (IGR) between the City of tion of the delivery of programmes were tion of the delivery of fied (Housing) implemented and
Tshwane and other critical programmes considered in the critical programmes All information budgeted for by
spheres of govern- by 2011 planning for the by 2011 received was incor- GDoH

City of Tshwane Annual Report 2008/2009 //

ment in the delivery of 2006/07 Medium porated into the IDP
critical programmes Term Revenue and (OEMCM)
CHAPTER FIVE: Strategic Objectives

or initiatives Expenditure Frame-

work

pg 237
92 93
I.e. promptness. R&SW: 73.6% Legal & Secretarial 76% Electricity 62% Social Development 100% Sport, Recreation, Arts & Culture 100% Water & Sanitation: 85.9% Emergency Management Services 37,65% Tshwane Metro Police Depart-
ment: 100% Corporate Services 70% Local Economic Development: 85% Tourism 94% Agricultural Trading Division 90%

2009/06/04 09:25:40 AM
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target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to

Annual Report v2.indd 238

improve performance

Perform risk manage- The degree to which All City of Tshwane The target was not All City of Tshwane Department indicated the indicator to be immeasurable and replaced the indicator with the one below, reading: “%

pg 238
ment City of Tshwane risk management achieved by all risk management compliance with principles of gap analysis by departments”

//
risk management practices in line with departments. Refer to practices in line with
practices reflect international best the footnote 94 international best
international best practice and norms practice and norms
practice, norms and and standards by end and standards by end
standards 07/08 2007/08.

Percentage compli- 75% 18,5% 40% compliance with 40% n/a 45%
ance with principles the principle of gap
of gap analysis by analysis by depart-
departments ments

Sound human re- Percentage of human 75% of all City of This KPI actually 75% of all City of 75% No SDBIP target n/a 75% It is not clear whether
source management resource practices Tshwane human represents an index. It Tshwane human the benchmarking
that reflect best prac- resource practices are consists of a number resource practices are was completed.
tice and compliance in line with interna- of indicators that are in line with interna-
with legislation tional best practice, weighted and then tional best practice,
norms and standards, calculated. norms and standards,
CHAPTER FIVE: Strategic Objectives

City of Tshwane Annual Report 2008/2009

and 100% comply and 100% comply
with legislation See footnote for with legislation
details 95

Number of employee 50% decrease in not reported 50% decrease in 20% CS and other 100% n/a Nine lodged (Hand Non-comparative
grievances lodged as grievances by 2011 grievances by 2011 relevant departments SD) information – no cor-
a proportion of the porate level reporting
total staff component 0,3% CSS provided

94
Proof of achievement on action plans was submitted by Economic Development (82%), Emergency Management (100%), Electricity (100%), Finance (87%), Corporate Services (56%), Governance (71%), Metro Police (80%), the Office of the City Manager
(0%), Water and Sanitation (83%), Social Development (95%), Housing (100%), and Roads and Stormwater (89%), Legal and Secretarial Services and Municipal Courts (0%).
95
Compliance to the following pieces of legislation is currently monitored by Corporate Services. Compliance to the following applicable legislation: Basic Conditions of Service Act - 100%; Labour Relations Act- 100%; Skills Development Act -100%; Oc-
cupational Health and Safety Act- 90%; Employment Equity Act- 80%; Current Human Resources Practices have not formally been benchmarked against best practices and such exercise will be undertaken in 07/08

2009/06/04 09:25:44 AM
Annual Report v2.indd 239
KPA KPI Backlogs Five-year programme Achieved 2006/07 Five-year programme 2007/08 annual IDP/ 2007/08 SDBIP 2007/08 adjustments Actual 2007/08 Comments on vari-
target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to
improve performance

E-governance Degree of response Ensure integrated This KPI requires an Ensure integrated 95% of organisa- No Corporate SDBIP n/a Risk manage-
of ICT to organisa- systems that support evaluation of the systems that support tional service delivery target. Departmental ment – pilot project
tional service delivery service delivery and systems support to the service delivery and needs met SDBIP target= proposal under
needs ensure accountability organisational service ensure accountability consideration
by 2008. delivery needs. De- by 2008. Introduction of an
tails in footnote 96 integrated risk man- E-billing – tender in
agement system – ac- progress
countability; Upgrade
plan of SAP System; SAP upgrade –
Implementation of an upgrade plan and
online billing system roadmap developed
– Service provider
proposal is under
consideration

% of internal respon- No specific target not reported corpo- No specific target No specific target 98% n/a User satisfaction sur- % of user satisfied
dents satisfied with IT rately vey – not achieved with IT unknown –
services survey not done

IT Service desk report

s– available on the
Intranet -plan to
present the report to
top management

Establish a public ac- Timeframe for the The public accounts The committee was KPA was achieved in the previous financial year
counts committee establishment of committee should established and ap-
a public accounts be appointed by end proved by council.
committee 0607

Number of reports No specific target IDP, MTEF, quarterly No specific target No specific target All legislated reports n/a IDP, SDBIP, the MTREF,
submitted to Council reports the adjustments
committees estab- budget and quarterly
lished in terms of the performance reports

City of Tshwane Annual Report 2008/2009 //

MSA and MFMA have been submitted
to MAYCO and
CHAPTER FIVE: Strategic Objectives

Council.

96
The design of an integration database (to integrate data between SAP, GIS and IBIS) is in progress. Various interfaces developed to enhance integration to other systems. The following integration was done: 1. Interface between SAP and Valuation system;

pg 239
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. Interfacing between Cashbook, Cashiers and SAP enhanced

2009/06/04 09:25:48 AM
 KPA KPI Backlogs Five-year programme Achieved 2006/07 Five-year programme 2007/08 annual IDP/ 2007/08 SDBIP 2007/08 adjustments Actual 2007/08 Comments on vari-
target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to

Annual Report v2.indd 240

improve performance

Customer relations Percentage of resi- n/a 80% of customers Results of the resi- 80% of customers Integrated with the KPA “Local government responsiveness to residents” above where exactly the same indicator was used.

pg 240
management dents surveyed who surveyed annually dents and business surveyed annually

//
indicated satisfaction indicate that they are satisfaction survey indicate that they are
with City of Tshwane satisfied with City of 2006 showed all satisfied with City of
responsiveness Tshwane responsive- areas requiring Tshwane responsive-
ness improvement. See ness
footnote for details 97

Skills audit: recruit- Percentage of rare Ensure that 70% of A thorough skills Ensure that 70% of No annual target No corporate SDBIP n/a 13% year 1
ment, retention and and essential skills rare and essential audit will be done rare and essential target
succession planning retained per job skills per job category during FY 07/08 that skills per job category
category are retained by 2011 will establish rare and are retained by 2011
essential skills reten-
tion strategies aligned
to the ASD

R6 m worth of
bursaries was offered
CHAPTER FIVE: Strategic Objectives

City of Tshwane Annual Report 2008/2009

to employees and
non-employees.

97
The Tshwane residents’ and business satisfaction survey 2006 indicated respondents thought “always true” or “most of the time true” for the following statements on 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%.

2009/06/04 09:25:53 AM
Annual Report v2.indd 241
KPA KPI Backlogs Five-year programme Achieved 2006/07 Five-year programme 2007/08 annual IDP/ 2007/08 SDBIP 2007/08 adjustments Actual 2007/08 Comments on vari-
target (2006/07 IDP) target (2007/08 IDP) MTREF target budget target ance/measures to
improve performance

Ensure employment The number of Annually achieve the 208 employees 38% Achieve 90% 97% (RandSW or 4 No SDBIP targets n/a 58,2% of employees
equity people from employ- targets set out in the (25,9% male) (12% representation of des- people from assistant defined for the (levels 1 to 4) are
ment equity target Municipality’s EE female) of levels 1 to ignated groups in the manager upwards, corporate level. from the designated
groups employed per plan, thereby achiev- 4 are African institution by 2011 75% housing, 80% groups
organisational level ing 100% of the EE Community (EMS);
in compliance with plan by 2011 18 employees 3,3% Total number of
the Municipality’s (2,6% male) (0,7% 100% metro police, employees appointed
EE plan female) of levels 1 to 75% City planning; levels 1 to 4: 189 of
4 are coloured which 46 are female
(a national KPI) 75% AEM; 80% (24,3%) and 143
16 employees water and sanitation; (75,7%) are male.
2,9%(2% male) (0,9% 85,1% finance; 70%
female) of levels 1 to Corporate services 84 (44,4%) are African
4 are Indian 5 (0.03%) are Coloured
306 employees 5 (0.03%) are Indian
55,8% (40% male) 95 (50%) are white
(15,9% female) of
levels 1 to 4 are white

Human resource Percentage of a Achieve national The City of Tshwane 1% of the remunera- No specific target No corporate target n/a R19 454 611.30
development plan Municipality’s budget norms and standards paid 1% of the remu- tion budget as levies (that is 1% of the
spent on implement- by 2011 in terms of neration budget as to the SETA remuneration budget)
ing its workplace the percentace of the levies to the SETA, an was paid in skills lev-
skills plan budget to be spent estimated R18 024 ies to the LGSETA
on implementing the 404, 00. 98
(a national KPI) workplace skills plan.

98
Skills levies paid 2006/07 R8,729 737.55m; Grants Claimed R4, 485 109.75m; Training Budget for 2006/07 R 31 598 914 m

City of Tshwane Annual Report 2008/2009 //

CHAPTER FIVE: Strategic Objectives

pg 241

2009/06/04 09:25:58 AM
 >> 5.3 Issues for Province to report on

Annual Report v2.indd 242

pg 242
Unit of Focus What has been completed What is being currently What has not been dealt What are the financial What are the legal implications?
Number of households with access addressed with at all, why, and what implications and where is

//
to at least basic service Households with below basic are the future plans additional funding needed
service
15 863 None Additional funds for bulk services National target of Dec 2008 may be
need to be provided for. missed if funds are insufficient
Backlog only related to formalised
areas

33 012 None Additional funds for bulk services National target of Dec 2010 may be
need to be provided for. missed if funds are insufficient
Backlog only related to formalised
areas
CHAPTER FIVE: Strategic Objectives

City of Tshwane Annual Report 2008/2009

467 100 Electricity: 16 402 Report to install temporary • Temp. electricity (43 000) National target of Dec 2011 may be
Housing: 133 811 electrification as basic instead R150 m missed if funds are insufficient
Total:150 213 of public lighting • Bulk (170MVA per annum
for three years R960 m

Water: Water: None No additional funding is needed National target of Dec 2008 for the eradi-
3247 4613 for the 2007/08 and 2008/09 cation of the water infrastructure backlog
(29% MIG funding) (29% MIG funding) financial years. and the national target for the eradication
100% expenditure 100% expenditure Additional funding is needed of the sanitation infrastructure backlog may
for the 2009/10 and 2010/11 be missed if:
Sanitation: Sanitation: financial years. 1. Funds are insufficient,

6030 17748 2. Construction material is not available,

(54% MIG funding) (54% MIG funding) 3. The lengthy procurement process is not reduced

100% expenditure 100% expenditure by at least 50%,

4. Suitable contractors are not available to be

Roads and Stormwater: Roads and Stormwater: appointed,

10 projects R79 463.35 5. Weather conditions is abnormal,

6. The performance of consultants and contractors

are not according to planning,

7. Geological conditions are not what is expected

2009/06/04 09:26:02 AM
 CHAPTER FIVE: Functional Statistics Analysis

>> 5.4 Functional analysis per Government Finance Statistics (GFS)

Classification

5.4.1 The Executive and the Council

a. Overview and description of key issues

The Governance and Secretariat Service Division is responsible for the overall implementation of
the Mayoral Committee System through the following areas: Governance Compliance (ensures
compliance with legislation and policies for the City of Tshwane and municipal entities, advises
on the corporate system of delegations and ensures compliance with procurement policies),
Mayoral Committee Support (provides secretariat support and resolution tracking for the Mayoral
Committee and other committees of the Executive Mayor), Statutory and Non-statutory Commit-
tee Support (provides secretariat support to S80 Committees, bid committees, audit committees,
etc), International and IGR Section (coordinates the City of Tshwane’s international relations pro-
gramme, and monitors and advises on IGR engagements), Mayoral Outreach and Stakeholder
Management (coordinates external stakeholder relations and community outreach programmes
for the executive, for example the quarterly imbizos, monthly community visits and stakeholder
consultative forums by the executive) and Elections Services (supports the IEC, the Council and
the Office of the Speaker with regard to elections and participatory democracy programmes).

The Special Programmes Division provides support to enable the Executive Mayor to fulfil her
political mandate:

• It ensures that all the needs of the residents of the City of Tshwane are met, with special em-
phasis on five focus areas: the youth, children, gender, the elderly and the disabled.
• The main focus of the unit is policy mainstreaming, planning and coordination, monitoring,
reporting and advocacy.

The aims of the division are to –

• raise awareness of the problems experienced by the youth, children, the elderly and the
disabled;
• ensure that the services rendered by the different departments of the Municipality address the
needs of these groups;
• participate in national activities that highlight the needs of these groups;
• facilitate links between services initiated by the Municipality and those of other stakeholders;
• work closely with the Integrated Community Development Unit and its political incumbent in
the implementation of policies relating to these groups; and
• highlight key issues that need to be elevated by the Executive Mayor as special projects.

City of Tshwane Annual Report 2008/2009 // pg 243

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 CHAPTER FIVE: Functional Statistics Analysis

The Office of the Speaker

• The Speaker presides over meetings of the Council and ensures that they are conducted in
accordance with the Rules and Orders of the Municipality.
• The Council has in place a Rules Committee that represents all political parties and is
chaired by the Speaker. All councillors are required to adhere to the Code of Conduct for
Councillors, which was established by national legislation. This code is aimed at ensuring
that councillors are held accountable to the community for their actions.
• The Council has entrusted the facilitation of public participation to the Speaker. The Office
of the Speaker is therefore a link between the Council and the communities. Under the guid-
ance of the Municipal Manager, the Office of the Speaker makes use of ward, petition and
other committees to promote and enhance public participation.
• The Office of the Speaker is also responsible for the overall coordination of Council and S79
Committees, including secretariat support.

Ward committees

• The purpose of ward committees is to enhance participatory democracy in local government.

The committees are chaired by ward councillors and are made up of elected volunteers from
the community who represent different interests in the ward.
• A ward committee makes recommendations to its ward councillor on matters affecting the
ward. The ward councillor in turn may refer matters to the Executive Mayor or the Council.
The committee may also advise the ward councillor.
• The Office of the Speaker provides the framework within which the ward committees’ activi-
ties take place and assists with the administrative functioning of the ward committees.

Petition Committee

• Members of the community can make a request, make a submission or lodge a complaint
regarding municipal service delivery through the Petition Committee.
• It consists of representatives of various political parties and is chaired by the Speaker.

Other committees

• The Speaker is a member of the Speakers’ Forum, which is a body consisting of the speakers
in Gauteng. This forum engages in discussions on matters of mutual concern.
• The Speaker is involved in the Gauteng branch of the South African Local Government As-
sociation (Salga). This association concerns itself with national and provincial matters and
how they impact on local government.

pg 244 // City of Tshwane Annual Report 2008/2009

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 CHAPTER FIVE: Functional Statistics Analysis

The Office of the Chief Whip

• This unit is mainly responsible for the political operations of the Council. This includes acting
as a link between the executive (the Mayoral Committee and the legislature (the Council) of
the local government and between the ruling party and other parties in the Council. It also
ensures that discipline is maintained at all times.
• Since the Chief Whip is elected from the ruling party in the Council, one of the key political
responsibilities of this office is to ensure that the strategic direction adopted by the Municipal-
ity is in line with the mandate and policy directives of the ruling party.
• Ensuring that the meetings of the Council and the committees of the Council are quorate;
• Promoting and maintaining positive party-to-party relations;
• Discussing with the Office of the Speaker the order of business of the Council, for example
whether a debate on an item should be allowed or whether an item should be debated or
put to the vote;
• Organising party caucuses for portfolio committee and Council meetings, planning their
agendas and making the necessary logistic arrangements for them;
• Arranging for the necessary resources to be made available to councillors;
• Coordinating the constituency work of councillors;
• Receiving, considering and processing applications for leave of absence by councillors in
accordance with the Council’s policy; and
• Preparing for special debates (for example, the debate on the State of the City Address
or on the budget). Despite the political differences between parties, the behind-the-scenes
negotiations conducted by this office often ensure that contentious issues are resolved in a
manner that is consistent with our democratic values as a nation.

5.4.2 Finance and administration

5.4.2.1 Finance

Overview and description of key issues

The Financial Services Department’s main aim is to manage the corporate financial affairs of the
Municipality and to ensure that financial resources are generated and used optimally. It provides
the municipal departments with financial services and performs a strategic financial management
function in the organisation.

Its responsibility includes drawing up the municipal budget and implementing and maintaining a
control system to ensure accurate information about the Municipality’s financial position.

City of Tshwane Annual Report 2008/2009 // pg 245

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 CHAPTER FIVE: Functional Statistics Analysis

Procurement

In terms of the Supply Chain Management Policy (SCMP) of the City of Tshwane, three commit-
tees were established in October 2005 to regulate the competitive bidding process, that is, the
Bid Specification Committee, the Bid Evaluation Committee and the Bid Adjudication Committee
(see section 26 of the SCMP).

In terms of section 26(2), the Accounting Officer did appoint the members to these three com-
mittees.

The details of tender/procurement activities for 2007/08 are as follows:

Details of tender/procurement activities

Number of times that the tender committee met during 22

the year
Total number of tenders considered 249

Total number of tenders approved 236

Average time taken from tender advertisement to award Varies depending on complexity

of tender

The following targets were set by Gauteng Province, and the Municipality will align itself to
achieve them by 2009:

• 50% of municipal procurements will be from BEE enterprises

• 15% from small and micro enterprises
• 20% on black women owned enterprises
• 10% on youth
• 5% on the disabled

pg 246 // City of Tshwane Annual Report 2008/2009

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Annual Report v2.indd 247
Tenders awarded to BBBEE for 2007/08:

Month Total Not claimable Net Total BEE men BEE Women White Women White Men
July 2007 R 371,717,317.96 R 2,000,000,00 R 369,717,317.96 R 81,373,393.64 R 52,670,873.07 R 60,104,226.74 R175,568,824.51

Aug 2007 R 90,762,330.87 R 117,000,00 R 90,645,330.87 R 34,856,425.85 R 23,928,599.29 R 862,787.89 R 30,997,517.84

Sep 2007 R 49,526,447.71 R 6,763,055.33 R 42,763,392.38 R 18,928,777.12 R 7,013,873.17 R 6,211,600.44 R 10,609,141.65

Oct 2007 R 126,573,428.61 R 37,885,181.40 R 88,688,247.21 R 55,624,815.94 R 20,120,247.19 R 1,529,087.04 R 11,414,097.04

Nov 2007 R 20,496,829.18 R 202,676,00 R 20,294,153.18 R 14,541,948.64 R 592,914.45 R 870,375.18 R 4,288,914.91

Dec 2007 R 327,074,163.31 R 0,00 R 327,074,163.31 R 160,224,861.19 R 53,756,960.50 R 22,817,644.91 R 90,274,696.71

Jan 2008 R 60,585,191.44 R 4,936,053.50 R 55,649,137.94 R 29,065,424.63 R 8,536,150.92 R 5,245,080.53 R 12,802,481.86

Feb 2008 R 20,464,790.40 R 0,00 R 20,464,790.40 R 14,565,403.79 R 619,015.46 R 0,00 R 5,280,371.15

Mar 2008 R 300,184,036.59 R 23,794,464.41 R 276,389,572.18 R 155,198,983.70 R 26,436,562.19 R 11,953,939.54 R 82,800,086.75

Apr 2008 R 237,609,931.83 R 13,930,324.35 R 223,679,607.48 R 83,403,852.82 R 35,551,408.77 R 9,295,469.74 R 95,428,876.15

May 2008 R 378,316,462.47 R 230,168,484.41 R 148,147,978.06 R 117,590,138.55 R 18,390,574.28 R 596,341.04 R 11,570,924.19

Jun 2008 R 128,099,334.64 R 4,726,146.46 R 123,373,188.18 R 52,880,907.71 R 17,212,649.27 R 18,511,504.77 R 34,768,126.43

City of Tshwane Annual Report 2008/2009 //

Total R2,111,410,265.01 R 324,523,385.86 R 1,786,886,879.15 R 818,254,933.58 R 264,829,828.56 R 137,998,057.82 R565,804,059.19
CHAPTER FIVE: Functional Statistics Analysis

% 100,00% 45.79% 14.82% 7.73% 31.66%

Total 2006/07 R2,648,187,167.72 R8,841,363.73 R2,639,345,802.99 R1,109,134,343.27 R201,638,452.65 R145,930,096.24 R1,182,642,911.83

pg 247
% 100% 42.02% 7.64% 5.53% 44.81%

2009/06/04 09:26:24 AM
 CHAPTER FIVE: Functional Statistics Analysis

i. Revenue management

Details Number R
Debt of less than R3 000 and older than 90 days written off 7,679,490
Property rates (total): number and value of rateable properties 360,976 19,578,033,872
Number and value of residential properties 343,340 13,047,567,965
Number and value of other properties 36,770 7,568,451,696
Rates collectable for the 2007/08 financial year 2,056,171,035
Regional Services Council (RSC) levies: number of registered 52, 1 61(current) Phased out

levypayers
Total establishment levy 13,971,073.90
Total services levy 31,096,906.42
Levies collected for the 2007/08 financial year 45,067,980.32
Policy on the indigent: No data available
Quantum (number of households affected) 47 474 72,538,582
Quantum (total value across Tshwane) 109,000 166,548,120
Basic social package quantum (total value across Tshwane) 50,000,000,00 pa

ii. Debtor billings

Average number of debtors Value for the year

Details
per month R
Water 255,921 1,215,772,693.37
Electricity 238,406 2,820,474,600.27
Sanitation 253,636 300,855,267.27
Waste 289,467 271,325,359.16
Assessment rates 269,162 2,056,171,034.98
Total 1,306,592 6,664,598,955.05

Debt collection

Total levied Total collected Percentage collected

6,664,598,955 6,631,275,960 99,5%

Analysis of Debt

Current out- 30 days out- 60 days out- More than 90

Total outstanding
standing standing standing days outstanding
489,372,541 161,822,704 84,182,885 2,056,108,055 2,791,486,185

pg 248 // City of Tshwane Annual Report 2008/2009

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 CHAPTER FIVE: Functional Statistics Analysis

iii. Corporate financial key performance indicators

Adjustments
Actual Budget Actual Annual targets Actual year to
Description budget
2005/06 2006/07 2006/07 2007/08 date 2007/08
2007/08

Restructuring grant indicators

Capital expenditure budget 83% 90% 86% 95% 100% 84,9%

indicator 99
Depreciation plus external 10,4% 11,4% 10,7% 15% 11,7% 9,8%
interest paid to TOI 64
Employee costs to TOI 28,9% 31,1% 29,7% 31,8% 28,8% 28.%
Net debtors to TOI 31,5% 21% 24,8% 14% 18,3% 29,3%
Annualised debtors collection 101% 98% 98,1% 98% 98% 101,4%
Repairs and maintenance 14,7% 13,2% 9% 13,5% 11,7% 16%
to TOI
Creditors days outstanding 30 30 30 30 30 30

Debt management

Depreciation to Opex 6,7% 7,2% 6,7% 8.06% 7,8% 6,3%

Interest as percentage of 3,4% 4% 3,7% 3.75% 3,7% 3,4%
revenue
Loan repayments as percent- 5,6% 9,8% 5,8% 6.01% 10,5% 6%
age of revenue

Borrowing management

Capital charges to operating 10,2% 11,5% 10,5% 7,6% 11,9% 10%

expenditure
Revenue management
Consumer debtors greater n/a 86% 75% 74% 86% 74%
than 90 days
Outstanding debtors to 29,6% 20% 28,8% 18,9% 17% 27,3%
revenue

Creditors management

Creditors system efficiency 100% 100% 100% 100% 100% 100%

IDP regulation financial viability

i) Debt coverage 14.1 8.2 8 12.9 7.5 7.3

ii) Outstanding service debt- 71,5% 20% 23,7% 43% 17% 27,2%
ors to revenue
iii) Cost coverage 1.6 1 0.9 1.2 0.7 0.7

Effectiveness

Capex benefit ratio 15,2% 16,3% 14,1% 18,2% 18,2% 16,4%

99
Budget targets and actuals are the year-to-date expenditure, i.e. until June 2008 compared to the “year-to-date” targets

City of Tshwane Annual Report 2008/2009 // pg 249

Annual Report v2.indd 249 2009/06/04 09:26:34 AM

 b) Key performance areas

Annual Report v2.indd 250

pg 250
Activities/ initia- Five-year pro- Achieved Reasons for
KPA KPI Target 2007/08 Actual 2007/08 Rating

//
tives gramme target 2006/07 variance
Increase participa- Facilitate broad- Percentage of local 5% Not reported on 5% 40.79% The actual reflects
tion and broaden based black vendors used that locality only and not
the contribution in economic empower- are black people black local people
growing the city’s ment
economy through
the development of
SMMEs, coopera-
tives, the informal
sector and the role
of black people,
women and youth

City of Tshwane Annual Report 2008/2009

Amount spent by No rand value No rand value No rand value R1 083 084 762.14 Target achieved
the City of Tshwane target set target set target set
through procure-
CHAPTER FIVE: Functional Statistics Analysis

ment policies on
BBBEE
Number of BEE 60% 51.30%
procurement
transactions as a
proportion of the
total number of
procurement trans-
actions

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Annual Report v2.indd 251
Activities/ initia- Five-year pro- Achieved Reasons for
KPA KPI Target 2007/08 Actual 2007/08 Rating
tives gramme target 2006/07 variance
Reduce the burden Provide poverty Rand value of social Reviewed annu- R72,538,582 Reviewed annu-
of poverty through alleviation through support package ally based on tariff ally based on tariff
an effective indigent the municipal social increases and regis- increases and regis-
policy that enhances package tered indigents tered indigents
the access for all
those who qualify
and link indigent
families to targeted
poverty alleviation
programmes that
would improve
household income
Prudent financial Municipal credit Short term: A1 Short term: A1 Short term: A1 Short term: A1 Target achieved
management rating Long term: A+ Long term: A+ Long term: A+ Long term: A+

Borrowing manage- Borrowing to asset 22,1% 23,1% 21.6 22.05% Target achieved
ment ratio
Debt management Debt coverage 18.4 10.7 18.7 16.05
Outstanding debtors 32% 70,3% 44% 36.06%
to revenue
Expenditure man- Percentage operat- 98% 84.72% 98% 81,8%
agement ing budget spent
to achieve set
outcomes
Revenue manage- Percentage expected 99% 98% 92% 99,7% Target achieved
ment as opposed to ac-

City of Tshwane Annual Report 2008/2009 //

tual accounts billed
CHAPTER FIVE: Functional Statistics Analysis

Percentage increase 5,9%

in revenue collec-

pg 251
tion through legal
processes

2009/06/04 09:26:44 AM
 Activities/ initia- Five-year pro- Achieved Reasons for
KPA KPI Target 2007/08 Actual 2007/08 Rating

Annual Report v2.indd 252

tives gramme target 2006/07 variance

pg 252
Number of require- 100% Not reported on 100% by 30 June 100% compliance Target achieved

//
ments of the Munici- 2008 with all provisions of
pal Property Rates the act.
Act complied with
Increase meter Percentage of total Increase by 2% a 85.09% 84% 84,7% Target achieved
reading meters read year
Sound HR manage- Train employees Number of employ- No target set Not reported on 621 781 Target achieved
ment according to the ees trained
departmental skills
development plan
Implement a work- % of operating No target set Not reported on No target set 51.53% of training Target achieved
place skills plan budget spent on budget spent
implementing the

City of Tshwane Annual Report 2008/2009

workplace skills plan
Performance man- Cascade scorecards Levels to which the Level 5 100% 100% 100% based on Target achieved
agement down to all organi- scorecards have old structure and
CHAPTER FIVE: Functional Statistics Analysis

sational levels been cascaded functions

Risk management Reduce controllable Percentage decrease Decrease by 2% a 70.85% increase in 92 claims 55 claims Target achieved
insurance claims by in insurance claims year claims compared to
2% a year due to controllable previous years 40% decrease in
events departments claims achieved
Reduce the cost Percentage reduc- 0,005% decrease 0,005% 0,005% decrease 22.88% reduction Target achieved
of insurance by tion in cost of insur- in cost in relation to in cost in relation to
0,005% a year ance a year declared asset base declared asset base

2009/06/04 09:26:49 AM
Annual Report v2.indd 253
c) Progress with project implementation

Adjust- R spent
R start fin
KPA Project name Project number Fund ments end June Ward Comments/corrective action
year
budget 2008
Procurement Buildings and equipment 712444 1 1,800,000 1,800,000 1,785,202 58 Project completed
Risk management Insurance replacements (City 712449 1 8,000,000 5,000,000 4,560,727 Tshwane wide Accurate forecasting cannot be done on this
of Tshwane contribution) project since it is merely a provision for the
replacement of assets to ensure compliance
with GAMAP/GRAP. Expenditure occurs as and
when departments submit valid claims. WBS
numbers and budgets are then allocated to the
projects. The procurement of the replacements
is the responsibility of the departments.
Insurance replacements 712450 1 5,000,000 2,500,000 4,483,653 Tshwane wide See comments above
Stanza Bopape erection of a 712599 1 1,800,000 1,800,000 13,659 16 The closing date of the tender was 2 June 2008
new paypoint and a contractor will be appointed after evalu-
ation is completed. However, the funds will not
be spent this financial year.

The project is a rollover project with R700 000

available in the next financial year. A special
endeavour will be made to raise funds during
the 2008/09 adjustments budget to complete
the project in the next financial year.
Entrench a Renovation and upgrading of 712607 1 1,000,000 800,000 288,006 34 The project is being done in phases. The first
customer-focused Soshanguve Block H phase has been completed in this financial year.
approach to resi- Project plans have been amended and the other

City of Tshwane Annual Report 2008/2009 //

dents and business minor repairs and restorations will be accom-
CHAPTER FIVE: Functional Statistics Analysis

by setting standards modated within the 2008/09 operating budget

that we achieve

pg 253
guided by the Batho
Pele principles

2009/06/04 09:26:54 AM
 CHAPTER FIVE: Functional Statistics Analysis

5.4.2.2 Human Resources

a) Overview and description of key issues

The Human Resources Division has been identified as a strategic vehicle in the management of
human resources in the City of Tshwane with specific reference to –

1. an effective organisation which will respond appropriately to change;

2. the obtaining, development, justification and use of human resources required;
3. the creation and maintenance of a cooperative climate of relationships in the organisation;
and
4. the meeting of the organisation’s social and legal responsibilities.

Through its human resource strategy the Human Resources Division aims to contribute to the
achievement of the objectives and the fulfilment of the social responsibilities of the City of Tsh-
wane. The human resource strategy is consistent with the corporate vision of HR and is captured
in similar terms. The central feature of the delivery of the HR strategy is the formation of strategic
partnerships with key stakeholders to meet the City of Tshwane strategic aims.
To this end the key strategic priorities of the HR strategy are –

• leading a citywide approach to the support, reward, development and management of staff
so that consistent levels of high performance are the norm;
• the building of institutional capacity to achieve successful change in the short and long term
through appropriate leadership and support for managers;
• the establishment and maintenance of effective relations with staff, individually and collec-
tively and with their recognised trade unions to achieve high levels of employee engagement;
• the development of an environment that fosters employee well-being, respect for diversity
and difference and in which there is no tolerance of unfair discrimination;
• the development and delivery of HR systems, policies, procedures and structure in a way that
is cost efficient and consistent with other elements of the HRS; and
• the development of the role of human resources staff such that through behaviour and activ-
ity every opportunity is taken to model, promote and sustain effective business partnering
with stakeholders.

The demands and expectations placed on HR are changing. This requires HR to respond in ways
that are different and that enable us to engage more effectively with operating units and other
key stakeholders. The nature of that relationship will be as partners, with mutual respect for what
each party brings to the relationship.

Effective partnership working will take effort and it is vital that all members of HR work hard to es-
tablish and to maintain effective relationships. The establishment of HR as a business partner for

pg 254 // City of Tshwane Annual Report 2008/2009

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 CHAPTER FIVE: Functional Statistics Analysis

effective and professional customer focus is central to the achievement of this element of the HRS.
The organisational arrangements within HR have been revised to ensure that HR is fit for purpose
and has the capacity and capability to respond to the demands placed on it. The review process
resulted in the realignment of HR into the following key performance areas:

1. Tshwane Training Academy

Acts as the training services provider within the City of Tshwane, ensuring the following perfor-
mance targets

• Support the implementation of the HRS

• Have a comprehensive range of training programmes targeted at meeting the needs of the
personal development plans
• Develop the manager as key focus of organisational change, by improving management
and leadership skills, knowledge and behaviours through targeted training programmes
• Strengthen the role of managers in training and developing their staff
• Provide flexible, responsive and accessible training opportunities to advance a positive work-
ing environment
• Have an induction training policy which promotes the integration of newly appointed staff
into the workplace, in addition to formal induction training
• Adopt a quality approach to the three elements of the training cycle, that is, training needs
analysis, delivery and evaluation
• Maximise the range of training and development methods/ options for staff including greater
emphasis on aspects such as on-the-job training and coaching, mentoring, self-learning,
computer-based training, e-learning and action learning
• Have reliable management information systems to maximise economy and efficiency in
training and development activities.
• Interact, where feasible, with other organisations in identifying and replicating best practice
and realising potential for economies of scale
• The design is also ring fenced to be merged with the Internal Business Unit on Leadership
and Management Academy.

2. Strategic HR Centre of Excellence

Provide end-to-end Strategic HR Centre of Excellence Services to the City of Tshwane based on
the Business Strategy of Strategic Human Resources, ensuring the following performance targets

• Climate and Culture Surveys

• Change Management System Development and Monitoring
• Change Management Awareness Creation Operation
• Individual Performance Management Enabling Operations

City of Tshwane Annual Report 2008/2009 // pg 255

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 CHAPTER FIVE: Functional Statistics Analysis

• Individual Performance Management Adjudication and Rewarding Operations

• Individual Performance Management Performance and Non-performance Management
• Process Application
• OrganisationOrganisational and Business Modeling Design
• Productivity and Integrated Process Management
• Remuneration Management
• Job Evaluation Management
• HR Policy and Process Research Management

The Strategic HR Centre of Excellence is primarily involved in the Stage 3 of the ASD programme
involved in the following work streams:

• Organisational Design
• Communication and Change Management
• Business Modelling and Corporate Governance Framework
• Job Evaluation and Costing
• Process Integration
•

3. Labour Relations Management

To provide end-to-end Labour Relations Operations to the City of Tshwane based on the Business
Strategy of Strategic Human Resources, ensuring the following performance targets

• Guide the Council on strategic labour matters

• Render a consultation service to client departments regarding the application of policies
• Maintain negotiation forums
• Collective Bargaining
• Industrial Relations Client Services
• Arbitrations Assistance

Labour Relations is also involved in the Stage 3 of the ASD programme involved in the activities
of the Collective Bargaining Work stream.

4. HR Strategic Operations

Provide end-to-end HR Strategic Operations support to the City of Tshwane based on the Busi-
ness Strategy of Strategic Human Resources, ensuring the following performance targets

• HR Plans, Policies, and Procedures Management

pg 256 // City of Tshwane Annual Report 2008/2009

Annual Report v2.indd 256 2009/06/04 09:27:06 AM

 CHAPTER FIVE: Functional Statistics Analysis

• HR Process, Practices, Systems and Solutions Implementation and Coordination

• HR Relationship Management
• HR Project Management

HR Strategic Operations are also playing the business integration role of key accounts manage-
ment in terms of the above performance targets.

5. Strategic Occupational Health and Safety

Empower the local authority and affiliated service delivery agencies to ensure health and safety in
the work place, thereby comply with legislation; prevent loss of productivity and undue financial
expenditure, ensuring the following performance targets

• Occupational Health and Safety Management System Enhancement

• Occupational Health and Safety System Compliance

6. Employment Equity Management

Facilitate the implementation of EE in support of the City of Tshwane’ strategic objectives, ensur-
ing the following performance targets

• EE Process Management
• Corporate EE Performance Areas Development
• EE Auditing Management
• EE Plan Ma
• EE Plan Compliance

Employment Equity is also playing a vital role in the population of the ASD detail design to ensure
application of the EE policy and strategy.

7. HR Shared Services

Contribute to the improvement of the quality of services within the City of Tshwane by providing
organisation-wide effective and efficient transversal, transactional and professional HR services
that will enable line management to focus on their core business and provide the opportunity to
excel.

HR Shared Services has been established to contribute to the following objects:

City of Tshwane Annual Report 2008/2009 // pg 257

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 CHAPTER FIVE: Functional Statistics Analysis

• To contribute to the improvement of the quality of services.

• To deliver best practice procedures and systems that provides organisation wide transac-
tional and professional support services.
• To enable line management to focus on their core business and provide the opportunity to
excel

The following KPA has been ring fenced as HR Shared Services, including performance targets:

• Salary, Benefits and Funds Administration Management

- To administer the salaries of officials, office bearers and Section 57 employees in terms of
the relevant legislation, policies and budget constraints
- To administer the benefits and funds of all officials, office bearers and Section 57 employees
in terms of the relevant legislation and policies, as well as the individual’s specific conditions
of appointment.

• HR Helpdesk Operations Management

- To provide an One Stop enquiry, information, advisory and administration service to all
officials, ex-officials, office bearers, Section 57 employees, as well as prospective employees

• Recruitment Operations Management

- The recruitment of suitable candidates to vacant posts and ensuring a long-term satisfied
workforce
- The selection of suitable candidates for vacant positions
- Ensure correct and timeous appointments are done
- Keep abreast of current and new legislation in the recruitment field
- Recruitment and Exit Interviews Management
- Highlights of 2007/08: eight positions of Strategic Executive Director were filled (only
four are still vacant and specific employees are acting in those positions); 23 positions of
Executive Director were filled (only eight are still vacant and specific employees are acting
in those positions).

• Occupational Health and Safety Operations Management

Comprehensive occupational health, occupational safety and occupational hygiene ser-
vices are provided and include amongst others the following services:
- Medical Incapacitation Management
- Medical surveillance
- Occupational Health and Safety Training Management
- To provide Occupational Health services to the City of Tshwane
- To provide Occupational Hygiene services to the City of Tshwane
- To provide administrative support to the Occupational Health and Safety unit of the City
of Tshwane

pg 258 // City of Tshwane Annual Report 2008/2009

Annual Report v2.indd 258 2009/06/04 09:27:15 AM

 CHAPTER FIVE: Functional Statistics Analysis

• HR Information Management
- To provide a registration and archive service in terms of the relevant legislation
- To render an administrative, technical support service to the Division

Process related to the above KPAs has also been mapped to ensure mutual understanding in
preparation of service level agreements with client departments.

b) Analysis of the function

Details 2005/06 2006/07 2007/08

Number and cost to employer of Number R Number R Number R
human resource staff employed:
- Professional 25 12 526 496 25 13 744 812 24 14 195 19 4
(Managerial/Specialist)
- Field 0 0 0 0 0 0
(Supervisory/Foremen)
- Office 220 17 372 095 215 18 872 337 197 19 292 327
(Clerical/Administrative)
- Non-professional 14 980 725 17 1 252 436 15 2 105 090
(blue collar, outside workforce)

City of Tshwane Annual Report 2008/2009 // pg 259

Annual Report v2.indd 259 2009/06/04 09:27:19 AM

 c) Key Performance Areas

Annual Report v2.indd 260

pg 260
Activities/ Initia- Five-year pro- Achieved Corrective Ac-
KPA KPI Target 2007/08 Actual 2007/08 Rating

//
tives gramme target 2006/07 tions
Human Resource Recognition of prior Number of employ- RPL at least 1 000 20 RPL advisors 20 RPL advisors 20 RPL advisors Target achieved
Development learning (RPL) ees that have been employees in the trained trained trained
taken through the City of Tshwane
RPL process CS:
Subject to SETA ac-
creditation
CRM training % of City of Tshwane 60% of employees HRD: Total number Advanced customer
employees trained trained on CRM by of employees care programme
on customer rela- 2011 trained in 2006/07 to start in August
tions management in customer care 2008.
= 220

City of Tshwane Annual Report 2008/2009

Facilitate Learner- Number of learners An average of 122 80 63 learners (EPWP)
ship programmes completing learner- 20 learners per
ship programmes department com- Vukuphile learner-
CHAPTER FIVE: Functional Statistics Analysis

with the relevant plete learnership ship);

SETA’s programmes with 1 learner (Environ-
the relevant SETA’s mental Education,
by 2011 Training and Devel-
opment Practices
Learnership)
% improvement in Improve organisa- 7554 trained = See footnote
organisational skills tional skills capacity 137%
capacity per annum by at least 5% per
annum
Number of em- 8 078 This means that
ployees trained in 62,4% of City of
accordance with the Tshwane employees
Skills Development were afforded a
Plan training/ skills devel-
opment opportunity

2009/06/04 09:27:24 AM
Annual Report v2.indd 261
Activities/ Initia- Five-year pro- Achieved Corrective Ac-
KPA KPI Target 2007/08 Actual 2007/08 Rating
tives gramme target 2006/07 tions
% of operating R5 036 788 was
budget spent on spent on skills
implementing the training
workplace skills plan
Performance Man- Levels to which the Cascade the perfor- Each HOD is respon- Cascade up to level 6 Levels 1, 2 and Cascading to man-
agement individual perfor- mance management sible for implementing 3 implemented ager and deputy
mance management system to all levels policies, procedures (Note: Level 6 and policy for top manager was
system is cascaded of the organisation and systems as com- indicated here is the management was implemented on trial
by 2010 municated by HR. HR pre-ASD level and revised. basis in 06/07, but
therefore plays a facili- refers to previous was kept in abey-
tative role. Each HOD deputy manager level. ance in 07/08 due
is measured on his or At that stage there was to major changes
her individual score an extra level of Chief in organisational
card regarding imple- Operating Officer structures and job
mentation. Level 6 in which fell away in ASD. contents of ASD
this case refers the pre The deputy manager which caused uncer-
ASD structure, meaning organisational level is tainties which could
former Deputy Man- therefore now level 5.) only be addressed
ager level. The Unions by placement
are currently seeking process on new
a mandate from their structures, which
members. Agreements commenced during
for two policies have 07/08. Cascading
therefore not been to be implemented

City of Tshwane Annual Report 2008/2009 //

concluded yet, however at Directors level
the system has been in terms of change
CHAPTER FIVE: Functional Statistics Analysis

implemented on a management 08/09

trial basis in 06/07 FY

pg 261
down to level 6.

2009/06/04 09:27:28 AM
 Activities/ Initia- Five-year pro- Achieved Corrective Ac-
KPA KPI Target 2007/08 Actual 2007/08 Rating

Annual Report v2.indd 262

tives gramme target 2006/07 tions

pg 262
Manage employee % of employee 80% 77.77% 70% 80% Target achieved

//
grievances grievances finalised
% decrease in griev- 50% decrease in 28% decrease in 10% decrease in 80% employee Target achieved
ances Grievances by 2011 grievances Grievances grievances finalised.
Manage employee Number of em- 2 2
discipline ployees disciplined
according to the dis-
ciplinary procedure
Implement a HR %implementation of 100% imple- 50% 40% Approved by May- HR Strategic
transformation plan HR transformation mentation of HR oral Committee Framework and
by 2009 plan in line with transformation plan Shared Services
legislation and best by 2009 Delivery Model
practice were approved at

City of Tshwane Annual Report 2008/2009

Portfolio Committee
of 25.10.07.
Implement Alterna- Timeframe for The detailed or- Resolve consultants 100% completion Org structures ap- 95% implementation
CHAPTER FIVE: Functional Statistics Analysis

tive Service Delivery completion of de- ganisational design did provide propos- of organisational proved 26.09.07. and migration of
options tailed organisational should be complete als to the Council design up to level 5 Certain amend- employees complet-
design by December 2006 end November by end of December ments were enter- ed by June 2008.
2006. The Council 2006 tained during 2008 5% to be finalised in
approved in prin- and Public Works 2008/09 F/Y
ciple and Infrastructure
Development
The City Manager Department was
established an ASD approved in June
project office to take 2008.
the process forward.

2009/06/04 09:27:33 AM
Annual Report v2.indd 263
Activities/ Initia- Five-year pro- Achieved Corrective Ac-
KPA KPI Target 2007/08 Actual 2007/08 Rating
tives gramme target 2006/07 tions
Timeframe for the The new structure Implementation of Org structures Top management
implementation of should be fully organisation struc- implemented up to survey to assess
new organisational implemented within ture up to level 3 by level 3. Placement the impact of ASD-
structure 1 financial year end June process of person- baseline report.
nel on structures Target achieved.
on all levels nearly
finished.
Implement an or- Aspects of culture Achieve a change None – dependent None – dependent None – dependent
ganisational culture change achieved in culture that on finalisation of on finalisation of on finalisation of
change programme addresses criti- ASD ASD. ASD.
cal bottlenecks in
service delivery

City of Tshwane Annual Report 2008/2009 //

CHAPTER FIVE: Functional Statistics Analysis

pg 263

2009/06/04 09:27:37 AM
 5.4.2.3 Other Administration

Annual Report v2.indd 264

pg 264
i. Office of the Executive Mayor and City Manager

//
a. Key Performance Areas

Five-year Comments/
Activities/ Initia- Achieved
KPA KPI programme Target 2007/08 Actual 2007/08 Rating Corrective Ac-
tives 2006/07
target tions
Leverage growing and International Market-
strategic sectors in the City ing: Exhibitions
in a way that optimises International Market- % of implementation of Articles in 20 publica- All publications planned
investment opportunities ing: Publications plans for International tions were done and copies
and focus on establishing Marketing: Publications were delivered in the
an integrated economy office
LED marketing plans % of implementation • Meetings Africa City of Tshwane partici-
of local Economic De- • Tourism Indaba pated in the exhibitions.

City of Tshwane Annual Report 2008/2009

velopment marketing • Soccerex Exhi-
plans Exhibitions bition
• International
CHAPTER FIVE: Functional Statistics Analysis

trade fair.
• OR Tambo In-
ternational trade
exhibition
Events % in developing new • New Year Cel- 3 events were success-
events in the city ebration fully developed
• Citizens Excel-
lence Awards
• Diplomatic Civic
Reception
Branding of the city % branding of all Brand 100% of events 100% of events Target achieved
events organised or co- (70 events) branded
organised by the city

2009/06/04 09:27:42 AM
Annual Report v2.indd 265
Five-year Comments/
Activities/ Initia- Achieved
KPA KPI programme Target 2007/08 Actual 2007/08 Rating Corrective Ac-
tives 2006/07
target tions
SMART City pro- • Automatic meter No data available
gramme reading
• Tetra digital
radio system
• City wide broad-
band roll-out
• Integrated IT
infrastructure
strategy
Promote a culture of Promotion of 2010 % of implementation Hosting a 2010 Mar- All programmes and Target achieved
competitive and profes- activities 2010 programmes/ keting and Communi- activities successfully
sional sports activities and activities cation workshop implemented
prepare the city to host the Design and develop-
Africa and World Soccer ment of a composite
cups in 2009 and 2010 logo and designs of
respectively various applications
Compilation of
corporate iden-
tity manual and
procedures for use of
composite logo
Marketing of 2010
through exhibitions
and events
1000 days count-

City of Tshwane Annual Report 2008/2009 //

down to Africa’s first
CHAPTER FIVE: Functional Statistics Analysis

world cup
Production of promo-

pg 265
tional and branding
material

2009/06/04 09:27:47 AM
 Five-year Comments/
Activities/ Initia- Achieved
KPA KPI programme Target 2007/08 Actual 2007/08 Rating Corrective Ac-

Annual Report v2.indd 266

tives 2006/07
target tions

pg 266
Establish effective stake- Stakeholder engage- % implementation of Campaigns imple- All campaigns success- Target achieved

//
holder forums that are ment marketing programmes mented: fully implemented
inclusive and foster a to market municipal • 11 Mayoral
non-racial, non-sexist, services and mayoral Imbizo’s
democratic, caring and imbizos • 7 other cam-
prosperous society, focused paigns
on achieving the city’s
socio-economic goals
% in supporting strate- • 32 Planned 100% of all planned Target achieved
gic events in the city strategic events the events were
achieved.
% awareness and • Development Changing the visual Composite logo
compliance of the city of all munici- look and feel of the has been inte-
brand pal forms and Municipality grated in the city

City of Tshwane Annual Report 2008/2009

templates brand and will be
• Compilation of used until 2010
brand manual
CHAPTER FIVE: Functional Statistics Analysis

• Compilation of
brand strategy
• Branding of mu-
nicipal buses
Entrench a customer focused Marketing and Commu- Answer 3 media queries 1 news conference per In total about 60 media
approach to citizenry and busi- nication of key Municipal daily. month. In all 3 press enquiries were received
ness by setting standards that Services conferences during the during the quarter.
we achieve guided by the Batho Issue 2 press releases per Quarter were held.
Pele principles week. Answered average of 1
1 Photo shoot per day media query daily.

Issued 3 press releases per

week. In total 34 state-
ments issued during the
Quarter

In total about 40 state-

ments were issued during
the quarter

2009/06/04 09:27:51 AM
Annual Report v2.indd 267
Five-year Comments/
Activities/ Initia- Achieved
KPA KPI programme Target 2007/08 Actual 2007/08 Rating Corrective Ac-
tives 2006/07
target tions
Editing, translation and Number of pages (Edit/translate/proof- 88% of target achieved Assisting Brand
proofreading services edited per annum read/ outsource some - Edited/translated/ Management
(including outsourcing) 15 600 pages per proofread 13 732 Committee with
for all departments and annum) pages the redesigning
offices of the Munici- of external City of
pality Tshwane forms,
applications, etc
and the editing
and translation
of the forms etc
in line with the
Tshwane Language
Policy
Coordinate and ad- Number of Council Administrate interpret- 77% The number of
minister a formal and and City Planning ing services for 11 Council meetings
informal interpreting meetings provided with Council Meetings was reduced to six
service interpreting services and 11 City Planning a year and some
Meetings per annum City Planning
meetings were
cancelled.
Promote multilingual- Represent City of Tsh- 100% achieved Awarded
ism in terms of legisla- wane at three meet- the PanSALB
tion to internal and ings of the National Multilingualism
external clients Language Forum per Award 2007 for
annum Municipality of

City of Tshwane Annual Report 2008/2009 //

the Decade which
CHAPTER FIVE: Functional Statistics Analysis

promotes multilin-
gualism

pg 267

2009/06/04 09:27:56 AM
 Five-year Comments/
Activities/ Initia- Achieved
KPA KPI programme Target 2007/08 Actual 2007/08 Rating Corrective Ac-

Annual Report v2.indd 268

tives 2006/07
target tions

pg 268
Respond and manage Number of customer No targets are set. 95 These stats are

//
customer complaints complaints received The goal is to deal only for the Private
with all complaints Office of the City
received. Manager.

Systems will be
set up to improve
record keeping in
this regard. Info is
only for six months
from Jan 2008 to
June 2008 when
reporting was ef-
fected.

City of Tshwane Annual Report 2008/2009

Sound HR management Implement training ac- Number of employees Internal training
cording to a depart- trained done: 49 Employees
mental workplace skills attended internal train-
CHAPTER FIVE: Functional Statistics Analysis

plan ing at Premos

External training
done: 50 Employees
attended external train-
ing provided by regis-
tered service providers

Manage employee Percentage of em- One grievance resolved

grievances ployee grievances
finalised
Manage employee Number of employees No disciplinary actions
discipline disciplined accord-
ing to the disciplinary
procedure

2009/06/04 09:28:01 AM
Annual Report v2.indd 269
Five-year Comments/
Activities/ Initia- Achieved
KPA KPI programme Target 2007/08 Actual 2007/08 Rating Corrective Ac-
tives 2006/07
target tions
Cascade scorecards Levels to which the Level 3
down to all organisa- scorecards have been
tional levels cascaded
Review current Timeframe for the Draft review of the
performance manage- review of the perfor- performance manage-
ment system within six mance management ment policy submitted
months of 06/07 finan- system. by BPME to the SED
cial year and conduct strategy and operations
annual reviews. in March 08.
Implement and ensure The number of people Black Female (4)
EE from the employment Black Male (6)
equity target groups
employed in the three
highest levels of man-
agement in compliance
with the Municipality’s
approved employment
equity plan, short term
employment, and long
term employment.
(NKPI)
Percentage of newly (6.10%) 32 Appoint-
appointed employees ments made in terms of
from EE target groups the ASD structure (524
positions)

City of Tshwane Annual Report 2008/2009 //

CHAPTER FIVE: Functional Statistics Analysis

pg 269

2009/06/04 09:28:06 AM
 Five-year Comments/
Activities/ Initia- Achieved
KPA KPI programme Target 2007/08 Actual 2007/08 Rating Corrective Ac-

Annual Report v2.indd 270

tives 2006/07
target tions

pg 270
Promote a new organi- Number of broadcasts 11 broadcasts/video’s 2) Partnership with

//
sational culture to City of Tshwane TUT
employees 3) Waste Manage-
ment video
4) SAMDI Broad-
casting – Learning
channel
5) Building Control
Video’s
6) Electricity –pow-
er saving Video
7) Electricity –shed-
ding some light
on load shedding

City of Tshwane Annual Report 2008/2009

Video
8) Foreign Missions
Video
CHAPTER FIVE: Functional Statistics Analysis

9) Bontle ke Botho
Video
10)Updated Pta.
Show Video
11) Tshwane Em-
bassy Community
Project
12) State of the
City Broadcast

2009/06/04 09:28:11 AM
 CHAPTER FIVE: Functional Statistics Analysis

ii. Customer Care

The Customer Care Division has established 23 customer care centres to serve the Tshwane
Community. A Call Centre was established to deal with all in bound calls and written enquiries.
Residents of Tshwane are welcome to contact us by email, post or telephone or by visiting the
centre closest to your residential area.

a.) Analysis of the Function

2006/07 2007/08
Details
Number R Number R
Number and cost to employer of
Customer Care staff employed:
- Professional (Managerial/Specialist) 14 11 244 911 13 10 444 911
- Field (Supervisory/Foremen) - - - -
- Office (Clerical/Administrative) 114 16 755 089 154 22 223 462
- Non-professional (blue collar, - - - -
outside workforce)

City of Tshwane Annual Report 2008/2009 // pg 271

Annual Report v2.indd 271 2009/06/04 09:28:15 AM

 b.) Key Performance Areas

Annual Report v2.indd 272

Activities/ Initia- Five-year pro- Achieved

pg 272
KPA KPI Target 2007/08 Actual 2007/08 Rating Corrective Actions
tives gramme target 2006/07

//
City of Tshwane Annual awards func- CRM: 1 awareness CRM: Distributed CRM: City excel- CRM: City service CRM: Industrial theatre
employee awards tion held programme per pamphlets on Batho lence award, Batho excellence awards was removed from the
to foster Batho Pele annum. Pele principles. The Pele day, Customer held on 26 May 2008. scorecard of the Gen-
Principles industrial theatre did Care week Batho Pele day held on eral Manager: Customer
1 industrial theatre not take place. 28 May 2008 Care.
Call centresz Time frame for the CRM: Establish CRM: Construc- CRM: Establish a CRM: The physical con- A project plan was
establishment of a a Call Centre by tion was held in call centre in the struction of the building submitted requesting
call centre in the the 4th quarter abeyance due to North became the responsibil- R10 mill CAPEX.: The
North (construction and insufficient funds ity of the Administrative physical construction
renovation only) Services Division. The of the building became
CRM division will be the responsibility of the
responsible for the Administrative Services

City of Tshwane Annual Report 2008/2009

operational capacity of Division.
the project.
Percentage of calls Address 87,6% of CRM: Total calls for CRM: Address CRM: 432 525 Processes in place to ad-
CHAPTER FIVE: Functional Statistics Analysis

addressed on time calls on time Fin Year 06/07 = 87,6% of calls on TOTAL: 81% 101 dress calls on time, e.g
391 056 calls re- time (539 368) recruiting of more call
ceived of which 366 centre agents.
125 were answered
immediately which
represents 93.62%
Percentage of callers CRM: 99% CRM: 86% 102
that receive the right
information with the
first call
Number of calls CRM: n/a CRM: 180 000 CRM 539 388 CRM:432 525
received by call
centres
Regional customer Number of custom- CRM: 73 000 CRM: 517 888 CRM: 816 544 CRM: 615 966 Most customer queries
care centres ers visiting customer were resolved through
care centres the call centre

101 102
Abandoned calls: 82 322 Calls received: 438 559. 328 752 contacts logged in relation to 383 041 complaints (notifications) logged.

2009/06/04 09:28:19 AM
Annual Report v2.indd 273
Activities/ Initia- Five-year pro- Achieved
KPA KPI Target 2007/08 Actual 2007/08 Rating Corrective Actions
tives gramme target 2006/07
Perception Survey 1 perception survey per Survey completed Conduct a city wide No survey was conducted Annual perception survey – it
Policy to assess Batho annum perception survey in was resolved that survey be
Pele compliance within 4th quarter done after completion of the
the City of Tshwane ASD Regional Model

Survey to commence Jan 09.

Ensure compliance with Percentage of City of 60% of all employees 100% of Customer Batho Pele train the Batho Pele train the trainer Supervisors completed the
Batho Pele Principles Tshwane employees by 2011 Care staff trained on trainer Batho Pele train the trainer
and Service Quality trained on Customer use of Customer Inter- course
Principles, Norms and Relations Management actions Centre (CIC)
Standards within the A new advanced course on
City of Tshwane Batho Pele will be developed
Approved Norms and Implementation Implementation strategy on Implementation of norms
Standards Policy by 4th strategy on norms norms and standards was and standards in progress.
Quarter and standards by 3rd approved by the Mayoral
quarter Committee on 16 January Some Departments busy with
Policy on Quality As- 2008. individual charters as per the
surance by 3rd Quarter draft provided by CRM.
Departments were
informed to draft service
charters according to the
templates and guidelines
provide by the CRM
division.

The CRM division in

collaboration with the
Strategic HR division will
present advanced training
module
% reduction in cus- Establish a baseline CRM: 1 090 309 85% per annum CRM: TOTAL 103: CRM division is not in con-

City of Tshwane Annual Report 2008/2009 //

tomer complaints relat- 1 003 022 (8% decrease) trol of complaints received
ing to City of Tshwane
CHAPTER FIVE: Functional Statistics Analysis

responsiveness SLAs to be entered into

with other departments, this

pg 273
will reduce the number of
complaints received.

103
1st quarter: 271 589, 2nd quarter: 225 079, 3rd quarter: 244 995, 4th quarter: 261 359

2009/06/04 09:28:24 AM
 c.) Progress with Project Implementation

Annual Report v2.indd 274

pg 274
Adjustments R spent end June Comments/ Corrective Ac-
KPA PROJECT n/aME Project number R start fin yr Ward

//
budget 2008 tion
Establish a call centre Customer Care Centre: 712484 5,000,000 Northern Areas CRM: The budgeted amount was
in the North Northern Areas insufficient to carry the estimated
cost.

A project plan was submitted

requesting R10 mill CAPEX. The
project is transferred to Administra-
tive services division.

City of Tshwane Annual Report 2008/2009

iv. Corporate Services
a) Analysis of the Function
CHAPTER FIVE: Functional Statistics Analysis

2007/08
Details
Number R
Number and cost to employer of Administra-
tive Services staff employed:
- Professional (Managerial/Specialist) 20 2 466 184
- Field (Supervisory/Foremen) 131 15 118 225
- Office (Clerical/Administrative) 248 35 812 446
- Non-professional (blue collar, outside workforce) 340 28 710 483

2009/06/04 09:28:28 AM
 b) Key Performance Areas

Annual Report v2.indd 275

Activities/ Initia- Five-year pro- Achieved
KPA KPI Target 2007/08 Actual 2007/08 Rating Corrective Actions
tives gramme target 2006/07
Increase participation and Percentage of BBBEE 80% 65% 65% Hardly any black owned
broaden the contribution in Vendors used SMME entities are
growing the city’s economy involved in the me-
through the development chanical maintenance
of SMMEs, cooperative- environment regarding
cooperatives, the informal the supply of genuine
sector and the role of black spare parts and services.
people, women and youth Therefore acquired from
agents appointed by the
vehicle and equipment
manufacturers.
Support good governance Risk management % Compliance with 100% No data available
through effective and ef- all relevant legisla-
ficient corporate manage- tion, policies and
ment policies and practices procedures
Sustainability man- % increase in rev- 100% 2% 100% 100% Function transferred
agement enue collection Only stated with to Financial Services
new roll on 1 July Department
2007
Manage the valu- Number of proper- Only stated with Finalise new valua- Submit report for
ation roll and the ties valued as a new roll on 1 July tion roll Policy, By-Law and
implementation of ratio to total number 2007 Credit Control By-
the Municipal Prop- of properties over a Laws by February
erty rates Act period of three years ‘08
Number of require- Implementation Approved 29.05.08
ments of the munici- through Council Adoption of the
pal property rates Report draft property rates
act, complied with policy and draft
by-laws in terms of

City of Tshwane Annual Report 2008/2009 //

Sections 3(1) and
CHAPTER FIVE: Functional Statistics Analysis

6(1) of the Munici-

pal Property Rates

pg 275
Act, 2004 (Act 6 of
2004) the “MPRA

2009/06/04 09:28:33 AM
 Activities/ Initia- Five-year pro- Achieved
KPA KPI Target 2007/08 Actual 2007/08 Rating Corrective Actions

Annual Report v2.indd 276

tives gramme target 2006/07

pg 276
Improve fleet man- % utilisation of the Efficiencies in fleet CSS: 84% Report on alternatives to

//
agement efficiency allocated budgeted management are the current fleet manage-
funds for addressing to be optimized by Implementation of ment situation has been
departmental fleet 2010 efficiency recom- complied and submitted
needs (= degree mendations to the Portfolio Commit-
of efficiency of fleet tee Same was referred
management) back for minor additions.
The report will serve at
the mayco in January
2009.
Number of fleet Reduce by 2% per 80% 85% 88% Report on alternatives to
vehicles managed annum the current fleet manage-
ment situation has been
complied and submitted

City of Tshwane Annual Report 2008/2009

to the Portfolio Commit-
tee Same was referred
back for minor additions.
CHAPTER FIVE: Functional Statistics Analysis

The report will serve at

the mayco in January
2009.
Number of vehicles CB437/2007 (17
bought (2007/ only)
2008) CB20/2008 (4 only)
Total 21 only
Total no of ve- Owned 2500
hicles owned by the Leased 1000
council (per vehicle Hired 75
category/type) Required 3575

Total Fleet leased

Total fleet required

2009/06/04 09:28:38 AM
Annual Report v2.indd 277
Activities/ Initia- Five-year pro- Achieved
KPA KPI Target 2007/08 Actual 2007/08 Rating Corrective Actions
tives gramme target 2006/07
Prudent Financial Completed evalu- 100% complete Not yet finalised
management ation of the Fleet
Study and the
implementation
of the findings by
12/2007
ICT services that % implementation of
support service approved IT gover-
delivery nance model
Number of IT 2 initiatives
related initiatives
implemented that
take government
closer to the people
Degree of integra- 2 systems integrated
tion of the SAP
system
% SAP system up 95% No data available
and running
% IT infrastructure 95% No data available
up and running
Records and Ar- Percentage of de- 100% Compliance 20% 40% 60% ASD has slowed down
chives management partments comply- with National Ar- the progress of amalga-

City of Tshwane Annual Report 2008/2009 //

ing to the National chives Act by 2010 mation and separation of
Archives Act functions
CHAPTER FIVE: Functional Statistics Analysis

pg 277

2009/06/04 09:28:44 AM
 c) Project Implementation

Annual Report v2.indd 278

pg 278
Project Adjustments R spent end
KPA PROJECT n/aME R start fin yr Ward Comments/ Corrective Action
number budget June 2008

//
Improve fleet manage- Vehicles 710869 5,000,000 Tshwane wide
ment efficiency
Land Purchase and 710880 5,000,000 Tshwane wide (Acquisitions still with Legal Services)
Sundry Properties
Buildings and facilities' HB Phillips Elevators 712581 1,400,000 1,308 million 58 Multi year project: lifts ordered and deposit paid
management Replacement
Information Manage- Upgrade of It Infra- 710200 5,000,000 Tshwane wide
ment structure
One Integrated 710213 30,000,000 Tshwane wide SAP Upgrade -in the process of planning for an
Transaction Processing upgrade that will bring about of benefits:
• The ease of integration with other systems in the
System
City such Geographic Information Management

City of Tshwane Annual Report 2008/2009

System, Property Management system etc.
• Alignment with the ASD service delivery model
• Integrated Asset Management
CHAPTER FIVE: Functional Statistics Analysis

• Integrated Property Management capability for

the City’s assets

Computer Equipment 710268 3,000,000 Tshwane wide

Deployment (Printers)
Integration 710341 5,000,000 Tshwane wide
Telecommunication
Equipment
Implementation of Stor- 710344 10,000,000 Tshwane wide
age Area Network
GIS 712446 1,000,000 Tshwane wide
E-initiatives 712554 6,000,000 Tshwane wide
Supporting the Smart
City

2009/06/04 09:28:49 AM
Annual Report v2.indd 279
iv. Legal Services
Key Performance Areas

Comments/
Activities/ Initia- Five-year pro- Achieved
KPA KPI Target 2007/08 Actual 2007/08 Rating Corrective Ac-
tives gramme target 2006/07
tions
Increase participa- Alienation of im- Percentage of 60% by 2011 0% 10% 0%
tion and broaden movable property council’s immovable
the contribution in property alienated
growing the city’s to BEE for commer-
economy through cial purposes
the development of Percentage of 45% per annum No data available
SMMEs, coopera- council’s immovable
tivecooperatives, the property alienated
informal sector and to BEE
the role of black
Complete the review Timeframe for No data available
people, women and
of the BBBEE policy completion of review
youth
by 31 Dec 2006, of BBBEE policy
with annual reviews
by Dec each year.
Decrease the crime Municipal Court % Number of cases Achieve an 80% 80% 85%
levels working with on the Court roll success rate for
the National Crimi- successfully pros- prosecutions by
nal Justice System, ecuted 2010Achieve an
the SAPS, business 80% conviction rate
and communities at municipal courts
ensuring visible po- by 2010
licing and strength- Number of new 80 000 143 556 Depends on law
ening the municipal cases in municipal enforcement and
court system court (1 July 2007 – notices paid or
30 June 2008) withdrawn

City of Tshwane Annual Report 2008/2009 //

Total number of 80 000 146 265 This implies that
CHAPTER FIVE: Functional Statistics Analysis

cases in municipal 2709 cases from the

court (ie not fi- previous period was

pg 279
nalised on 30 June carried over to this
2008) financial year

2009/06/04 09:28:54 AM
 Comments/
Activities/ Initia- Five-year pro- Achieved
KPA KPI Target 2007/08 Actual 2007/08 Rating Corrective Ac-

Annual Report v2.indd 280

tives gramme target 2006/07
tions

pg 280
Number of cases 20% 15% (11 348) Achieved by 5%

//
withdrawn from the
court roll
% decrease of the 20% 15%
number of cases
withdrawn from the
court roll.
Number of finalised 80 000 143 556
cases
% success rate for 60% 80% 85%
prosecutions
Prudent financial Revenue collection % increase in by 5% pa n/a n/a There is an
management via the courts/legal revenue collec- increased “vide”

City of Tshwane Annual Report 2008/2009

processes should tion through legal reports of CFO:
increase processes Revenue Manage-
ment for consoli-
CHAPTER FIVE: Functional Statistics Analysis

dation statistics ie
Integrated approach
for revenue collec-
tion

2009/06/04 09:28:59 AM
Annual Report v2.indd 281
Comments/
Activities/ Initia- Five-year pro- Achieved
KPA KPI Target 2007/08 Actual 2007/08 Rating Corrective Ac-
tives gramme target 2006/07
tions
Perform risk man- Decrease the legal % decrease in legal by 1,5% per annum Baseline = 753 887 No data available
agement claims against the claims against the
Municipality Municipality
Decrease the no of Number of judge- 1,5% per annum Claims and collec-
judgements against ments against the tions:
the Municipality City of Tshwane Judgements against
= 5, judgements
for = 5, settlements
= 32

Litigations:
Judgements against
= 6, Judgements for
= 25, settlements
= 11

Total:
Judgements against
= 11, judgements
for = 30, settle-
ments = 43
No legal opinions 513 requests
provided as a 513 legal opinions/
proportion of those comments provided

City of Tshwane Annual Report 2008/2009 //

requested
CHAPTER FIVE: Functional Statistics Analysis

pg 281

2009/06/04 09:29:04 AM
 CHAPTER FIVE: Functional Statistics Analysis

5.4.3 Planning and Development

5.4.3.1 City Planning

a) Overview and description of key issues

The City Planning and Development Division’s main functions are Spatial Planning and Land-Use
Management. All of the Division’s functions are performed in an integrated and holistic manner
to ensure functional interaction between the regions and deals with four issues of metropolitan
importance, namely:

• Densification
• Movement
• Urban boundary
• Open space and conservation

The Section: Land Use Legislation and Application Management embarked on the compila-
tion of one Town Planning Scheme for Tshwane. The Draft Tshwane Town Planning Scheme was
unanimously approved by Council on the 23rd November 2006. Thereafter the zoning of all
the land parcels (about 450 000) were converted into the new proposed scheme notation. The
Draft Scheme was amended by virtue of a Council Resolution in March 2008. The Tshwane Town
Planning Scheme, 2008 was promulgated on 23 April 2008 and came into operation on 19
June 2008.

Another major project being undertaken is the audit of unproclaimed townships. Many areas,
although formally developed, do not have separate title for the individual erven as the formal
township establishment process was never concluded. Once the legal status of these areas has
been determined, the appropriate legislation and mechanisms can be used to reach proclama-
tion and the transfer of properties to beneficiaries

Strategic or catalytic projects such as the Gautrain Stations Development Frameworks, The Free-
dom Park/Salvokop Development Framework, the Akasia CBD Redevelopment Plan, the Metro-
politan Urban Cores Development Guidelines and the Eerste Fabrieke Town Centre were under-
taken to implement the spatial plans and policies.

The management of outdoor advertising entails the receipt and evaluation of outdoor advertising
applications on both private and municipal property, entering into agreements with advertisers on
municipal property, contract management of about 300 agreements and the financial manage-
ment of the funds generated by such agreements (projected income 2007/08 – R24 m). It also
entails close liaison with the Integrated Communications and Marketing Department in ensuring
the effective use of outdoor advertising, which is acknowledged to be one of the most effective
communication media available, in getting the Municipality’s message across.

pg 282 // City of Tshwane Annual Report 2008/2009

Annual Report v2.indd 282 2009/06/04 09:29:09 AM

 CHAPTER FIVE: Functional Statistics Analysis

This includes negotiating advertising space and reduced rates for the display of the Municipality’s
own advertisements on outdoor signs.

The Office also provides an essential input into the policing and enforcement of the outdoor
advertising bylaws by the Metro Police and Development Control Unit.

The City of Tshwane has adopted five regions, namely, North East, East, North West, Central
West and South. Satellite offices have been established to ensure that services are accessible to
all residents The long-term objectives of the city are to inter alia, develop regional centres that
will provide comprehensive municipal services and inculcate a customer centric culture based on
the Batho Pele principles.

City of Tshwane Annual Report 2008/2009 // pg 283

Annual Report v2.indd 283 2009/06/04 09:29:13 AM

 b) Analysis of the function

Annual Report v2.indd 284

pg 284
2005/06 2006/07 2007/08
Analysis of the function

//
Total R Total R Total R
1. Number of City Planning staff and their cost to the Municipality 341 83 145 676 285 85 229 045 324 103 769 067
- Senior managerial (general manager, managers) 8 4 448 264 7 4 332 116 8 6 712 028.60
- Managerial (deputy managers, chiefs, assistant managers) 53 21 039 279 38 18 632 901 54 25 822 242.40
- Professional (architects, consultants, project managers, etc) 146 40 136 417 151 48 662 593 125 46 338 787.60
- Field (supervisors, foremen) - - - -
- Office (clerical, administration, secretarial, etc) 119 16 006 198 76 11 905 929 116 22 045 500.40
- Non-professional (drivers, workshop assistants, etc) 15 1 515 518 16 1 695 506 21 4 073 746.80
- Non-professional (clerical, administrative)
- Temporary - - - -

City of Tshwane Annual Report 2008/2009

2. - Contract 46 2 710 565 56 70 3 471 202
3. Details and cost of incentives for business investment Not Applicable 54 25 822 242.40
4. Details and cost of urban renewal strategies Done in House Indirect cost to 125 46 338 787.60
CHAPTER FIVE: Functional Statistics Analysis

Council
5. Details and cost of rural development strategies: Done in house Only indirect
A multidisciplinary rural strategy to address development in the rural cost to Council,
areas (in process of being drawn up) strategy done in
house
6. Number of people employed through job creation schemes: Not applicable 116 22 045 500.40
- Short term employment
- Long term employment
Number of building inspectors employed and their cost to the Municipal- 21 4 073 746.80
ity:
- Chief Building Inspectors 4 1 135 298 6 1 582 129 6 1 727 895.16
- Building Inspectors 26 8 947 573 26 6 879 657 31 8 014 113.20

2009/06/04 09:29:18 AM
Annual Report v2.indd 285
2005/06 2006/07 2007/08
Analysis of the function
Total R Total R Total R
-Temporary 3 479 426 3 508 192
- Contracts 6 1 727 895.16
7. Details of building plans:
-Number of site development plans approved 1399 1362 864
- Number of building plans approved 21 494 16 674 15 781
Number of building plans approved (residential and non-residential 20 032
combined)
8. - Value of building plans approved 12 762 536 300 10 431 463 000 14 468 188 450
9. Number of building related inspections conducted 73 460 80 592 64 244
10. Number of contravention notices served 3 135 2 654 3213
Number of occupation certificates issued. 13 621 11 167 11 192

City of Tshwane Annual Report 2008/2009 //

CHAPTER FIVE: Functional Statistics Analysis

pg 285

2009/06/04 09:29:22 AM
 c) Key Performance Areas

Annual Report v2.indd 286

pg 286
Activities/ Initia- Five-year pro- Achieved Actual Rat- Comments/ Corrective
KPA KPI Target 2007/08

//
tives gramme target 2006/07 2007/08 ing Actions
Eradicate/reduce in- Contribute towards Percentage of settle- At a rate of 10% pa. 30% 104 No data available
frastructure backlogs the national target of ments established as
formalising informal townships/ land devel-
settlements by 2014 opment application
by establishing town-
ships from informal
settlements
Provide for the Facilitate controlled Metropolitan Spatial A draft MSDF was MSDF will be Terms of reference Owing to capacity prob-
demand/growth in city development Development Frame- finalised in June revised in the finalised lems, the target could not be
housing services in work (MSDF) main- 2006. 2007/08 financial achieved.
formalised (pro- tained year
claimed) areas

City of Tshwane Annual Report 2008/2009

Strategic development Tshwane Spatial De- Completion of Approved on 2 Approved on
frameworks compiled velopment Strategy: TSDS 2010 and August 2007
2010 and beyond beyond
CHAPTER FIVE: Functional Statistics Analysis

completed. 2 August 2007

Number of residential 50600 10000 10000 10290 Application driven. Decline in
building plans ap- economy has negative influ-
proved ence
Total number of build- 16 674 15 000 16,033
ing plans approved
Value of building plans R10 431 463 000 R9 900 550 000 R14 468 188 450
approved

104
in total 19 informal settlements to be formalised accumulatively

2009/06/04 09:29:27 AM
Annual Report v2.indd 287
Activities/ Initia- Five-year pro- Achieved Actual Rat- Comments/ Corrective
KPA KPI Target 2007/08
tives gramme target 2006/07 2007/08 ing Actions
Number of site devel- 1 362 1300 864
opment plans approved
Number of residential 3000000 58795 60000 46520 Application driven. Decline in
building-related inspec- economy has negative influ-
tions conducted ence
Number of residential 50600 10856 10000 9447 Application driven. Decline in
occupation certificates economy has negative influ-
issued ence
Number of develop- 50 9 12 10 Application driven. Decline in
ment projects facilitated economy has negative influ-
i.t.o Section 7(6) ence
Number of residential 480 431 This indicator is responding to
properties in formalised applications for development
(proclaimed) areas and is as such not “achieved”
by the CP Department
Land use manage- Number of land-use 12500 1917 applications No targets set – Ap- 1896 applications Application driven
ment applications finalised were received. plication driven were received.

2306 applications 2946 applications

were dealt with of were dealt with of
which 646 were ad- which 605 were
ministratively closed administratively
due to non compli- closed due to non
ance or awaiting compliance or

City of Tshwane Annual Report 2008/2009 //

further information awaiting further
CHAPTER FIVE: Functional Statistics Analysis

from the applicant. information from

the applicant.

pg 287

2009/06/04 09:29:33 AM
 Activities/ Initia- Five-year pro- Achieved Actual Rat- Comments/ Corrective
KPA KPI Target 2007/08

Annual Report v2.indd 288

tives gramme target 2006/07 2007/08 ing Actions

pg 288
No of Development Various develop- Drafting and Site Development

//
projects ment projects were implementation Plans for Hatfield
initiated successfully of new develop- and Pretoria Sta-
facilitated. ment strategies and tion approved.
- Revision of Gautrain interventions aimed
Stations Development at developing the June 2008.
Framework neglected northern
- Facilitation of various
parts of the city.
large developments
around the Gautrain
Stations
- Urban Core Devel-
opment Guidelines
- Finalisation of the
Tsosoloso Programme

City of Tshwane Annual Report 2008/2009

to re-develop the pre-
viously marginalised
areas
CHAPTER FIVE: Functional Statistics Analysis

- Securing funds from

the National Treasury
for the Tsosoloso
Programme

Land use legislation Approval of Town Plan- The Draft Tshwane Approval of the new Tshwane Town Implementation of new Tsh-
ning scheme Town Planning was Tshwane Town Plan- Planning Scheme wane Town Planning Scheme –
approved on the ning Scheme was promulgated Implemented on 19 June 2008
23rd November on 23 April 2008.
2006. The Public
participation pro-
cess completed.

2009/06/04 09:29:37 AM
Annual Report v2.indd 289
Activities/ Initia- Five-year pro- Achieved Actual Rat- Comments/ Corrective
KPA KPI Target 2007/08
tives gramme target 2006/07 2007/08 ing Actions
Regeneration and de- Percentage of inner city 1. Cascading/ translation of ap-
velopment of potentially regeneration compared to proved RSDF’s into projects for
viable economic nodes the total need in terms of: implementation through Regional
focusing on the inner a) businesses business plans to be finalised by
city and targeted areas b) open space 31 March 2009. Translation of the
based on efficient land c) social infrastructure approved Inner City Framework
use d) economic infrastructure into projects to inform inner-city
e) historical buildings development Re-Kgabisa Tshwane
initiatives and departmental budget-
ing and implementation.
2. Institutional Mechanism for
the management of the Tsh-
wane Inner City Regeneration
Programme for the Implemen-
tation of Rekgabisa Tshwane
MOU with Public Works -
proposal to be finalised by 28
February 2009.
3. One Stop Corporate Busi-
ness Centre to be launched on
31 March 2009 in the inner
city
4. One portion of Marabastad
Open space to be completed
by 30 June 2009
5. Owing to the funding
availability restriction of the
R10 million internal funding
requirements from the city,
alternative avenues are to be
explored with both the Province

City of Tshwane Annual Report 2008/2009 //

and the Private Sector for the
CHAPTER FIVE: Functional Statistics Analysis

development of the Lilian

Ngoyi Square.

pg 289
6. Opening of Bloed Street –
Project Delivered successfully

2009/06/04 09:29:42 AM
 Activities/ Initia- Five-year pro- Achieved Actual Rat- Comments/ Corrective
KPA KPI Target 2007/08

Annual Report v2.indd 290

tives gramme target 2006/07 2007/08 ing Actions

pg 290
Percentage of settle- 20% 16% 20% 83% Compiling precinct Spatial De-

//
ments close to eco- (81 townships) velopment Framework’s as part
nomic opportunities of the Tsošološo Programme at
the identified economic node.
Comment on appli- Number of economic 1900 315 applications 380 470 applications Request driven
cations for business opportunities per eco- commented on commented on
licenses nomic node (ie business Comments requested by Econ
licenses issued, incl. Dev
hawker licenses)
Number of business/ 4533 5129 These indicators are re-
commercial properties sponding to applications for
development and is as such
not “achieved” by the CP
Department

City of Tshwane Annual Report 2008/2009

Number of industrial/ 4001 4763
manufacturing proper-
ties
CHAPTER FIVE: Functional Statistics Analysis

Promote viable com- Compiling strategic Tshwane Spatial De- Completion of Approved on 2 Target Achieved
munities by establish- development frame- velopment Strategy: TSDS 2010 and August 2007
ing mixed human works 2010 and beyond beyond
settlements closer to completed.
economic oppor- Compile the regional Number of regions with The eight RSDF’s RSDF’s for the 5 Draft RSDF’s for RSDF’s to be submitted to
tunities with social, development frame- development frame- were finalised in new ASD Regions to the 5 ASD regions Council for approval in 08/09
cultural and eco- works works June 2006 be completed and completed
nomic development submitted to Infra-
programmes that structure Cluster
enable celebration
Number of regional Eight regional devel- The RSDF’s must Draft RSDF’s for RSDF’s to be submitted to
of diversity and foster
development frame- opment frameworks be re-aligned to the the 5 ASD regions Council for approval in 08/09
social inclusion
works compiled five ASD Regions completed

2009/06/04 09:29:47 AM
Annual Report v2.indd 291
Activities/ Initia- Five-year pro- Achieved Actual Rat- Comments/ Corrective
KPA KPI Target 2007/08
tives gramme target 2006/07 2007/08 ing Actions
Number of spatial de- 20 5 5 Hatfield Spatial Hatfield SDF: Awaiting Traffic
velopment frameworks Development Study before submitting to
updated/revised Framework com- Council
pleted
Called for tenders from consul-
Saulsville Station: tants but none received
Saulsville Station
Development
Framework
Compilation and imple- Seven SDF’s and two Spatial Development Completed, Council Approved by Council:
mentation of the local UDF’s were finalised. Frameworks for the approval pending
Spatial Development following areas to public participation. 1. Mabopane Station Urban
Frameworks (SDF’s) and The policy for a Place be developed and 1. Brooklyn Urban
Design Framework
Policies of Child Care was ap- submitted to Council design framework 2.
proved by Council. for approval: Gezina station
2. Denneboom Station Urban
1. Brooklyn Urban 3. Waverley/Villeria
Design Framework
The policy for Com- design framework SDF
munes was approved 2. Gezina station 4. Mamelodi: T
by Council. 3. Waverley/Villeria section Other precint based Spatial
SDF 5. Pretoria West Development Framework are
4.Mamelodi: T section densities pending public participation
5. Pretoria West 6. Monovani/South prior submission for Council
densities Western Region SDF structures approval.
6. Monovani/South 7. Soshungeve South
Western Region SDF
7. Soshungeve South
8. Mabopane Sta-

City of Tshwane Annual Report 2008/2009 //

tion Urban Design
Framework
CHAPTER FIVE: Functional Statistics Analysis

9.
Denneboom Station

pg 291
Urban Design Frame-
work

2009/06/04 09:29:52 AM
 Activities/ Initia- Five-year pro- Achieved Actual Rat- Comments/ Corrective
KPA KPI Target 2007/08

Annual Report v2.indd 292

tives gramme target 2006/07 2007/08 ing Actions

pg 292
The rendering of a Number of requests 300 000 66 000 52 000 102 632 Target exceeded

//
general geomatic for land information
service (including geomatic
information) finalised
The maintenance of 100% of all re- Attending to 100% Attending to 100% Services are extended as part
the Land Information quests for informa- of requests for in- of requests for in- of regional model implementa-
System tion was attended to formation received formation received tion
To provide the City 100% of all re- Attending to 100% 100% of all Services are extended as part
of Tshwane with quests for informa- of requests for in- requests for of regional model implementa-
integrated spatial tion was attended to formation received information was tion
information attended to
Ensure the safety of Number of city devel- 20 000 2655 4000 2641 Staff shortage hampers efficient
our communities, opment contravention functioning of the Section.
businesses and roads notices issued Routine inspections cannot be

City of Tshwane Annual Report 2008/2009

through fostering a done and Section can only re-
culture of respect for spond to complaints received.
the rights of all, the
CHAPTER FIVE: Functional Statistics Analysis

Number of convictions 20000 1895 4000 362 Department dependent on

laws that govern us all on city development Magistrates who postpone/
and a high moral and contraventions delay finalisation. Dept has no
ethical standard control re the process or Court
rolls

2009/06/04 09:29:57 AM
Annual Report v2.indd 293
Activities/ Initia- Five-year pro- Achieved Actual Rat- Comments/ Corrective
KPA KPI Target 2007/08
tives gramme target 2006/07 2007/08 ing Actions
% reduction in bad build- 21 Bad buildings Eradication of 10 Bad 9 Bad buildings under Reconstitution the Bad Building
ings in the City of Tshwane under investigation Buildings in the Inner investigation programme. Including the
City reviewing of the Bad Buildings
Approx 1895 court Approx 362 court
cases for NBR, TPS Committee
cases for NBR, TPS 4000 convictions
and outdoor advertis-
and outdoor advertis-
ing by-laws finalised Capacitating the Unit with
ing by-laws finalised 4000 convictions
adequate resources including
2231 Contravention
720 Contravention dedicated resources for legal
notices issued for city
notices issued for TPS planning (TPS, NBR, process especially for High
transgressions ODA) transgressions Court cases.

374 Contravention Removed:

notices issued for 63 142 Placards (in-
clude posters, boards,
outdoor advertising
standing boards and
banners)
Removed:
44 542 Placards (in- 311 fixed signs (pole
clude posters, boards, signs)
standing boards and
banners) 254 fixed Graffiti: 135 sqm
signs (pole signs) Graf-
fiti: 135 sqm Bridges cleaned,
cement washed and
treated with anti
graffiti: 23 bridges
measuring

City of Tshwane Annual Report 2008/2009 //

4338 m² in total
CHAPTER FIVE: Functional Statistics Analysis

Use legal proceed- Reduction in the no 50 8 10 12 Request driven

pg 293
ings to eradicate bad of bad buildings per
buildings economic node

2009/06/04 09:30:06 AM
 Activities/ Initia- Five-year pro- Achieved Actual Rat- Comments/ Corrective
KPA KPI Target 2007/08

Annual Report v2.indd 294

tives gramme target 2006/07 2007/08 ing Actions

pg 294
Decentralise service Operational regions Number of regional 5 operational Regions could not 4 Regional Executive Direc-

//
delivery closer to offices established Regional Offices be fully established tors only appointed late in
communities that and implemented FY 07/08. Scoping has been
provides one-stop due to late ap- done. RED offices in process of
comprehensive mu- pointment of REDs being operational in FY 08/09
nicipal services and and insufficient
integrated govern- resources
ment information
and communication
centres
Respond to customer Respond and Number of customer 5000 959 1000 992 Request driven
management and manage customer complaints regarding
reduce customer complaints on city contraventions of City
complaints planning legislative Planning legislation

City of Tshwane Annual Report 2008/2009

contraventions
Implement standard Number of service 4 4 4 4 Target achieved
Batho Pele compliant points with Batho Pele
CHAPTER FIVE: Functional Statistics Analysis

operating procedures operating procedures

at all customer con-
tact points and service
desks
Sustainability man- Realise revenue R13.1 million R16 million R24.3 million (as Target exceeded
agement targets from outdoor at 30 June 2008 –
advertising exact amount to be
confirmed
Prudent financial Capital expenditure Percentage of Capex 90% 94% 90% 80% 80% of R6 million spend…
management spent additional R2 mill wrongly bud-
geted under City Planning
Manage remunera- Remuneration as a 81% 78% 81% 79% City Planning’s budget consist
tion to be within RG percentage of the total 80% of HR costs of Profession-
targets adjusted operating als and high level staff
budget

2009/06/04 09:30:15 AM
Annual Report v2.indd 295
Activities/ Initia- Five-year pro- Achieved Actual Rat- Comments/ Corrective
KPA KPI Target 2007/08
tives gramme target 2006/07 2007/08 ing Actions
Train employees Implement train- Number of employees 220 18 50 115 Limited bookings per depart-
according to the ing according to a trained ment. Limited budget for
departmental skills departmental work- external training
development plan place skills plan
% of operating budget 0.13% on external 0,22% on external Internal Training budgeted for
spent on implement- training training and provided by HR
ing the workplace skills
plan
Performance manage- Manage employee Percentage of employee 100% 90% 100% 95% The Transport allowance griev-
ment grievances grievances finalised ance is still pending
Manage employee Number of employees 0 9 0 2
discipline disciplined accord-
ing to the disciplinary
procedure
Cascade scorecards Levels to which the 5 4 Corporate policies determine
down to all organisa- scorecards have been pace
tional levels cascaded
Employment equity Implement and The percentage of people 70% 70% 60% 20% Appointments on the highest
ensure EE from the employment levels are almost done in this
equity target groups em- department. 12 vacancies to
ployed in the three highest
be filled. ASD process currently
levels of management
stalling filling of these positions
in compliance with the
Municipality’s approved
employment equity plan,
short term employment,
and long term employ-
ment. (NKPI)

City of Tshwane Annual Report 2008/2009 //

All incidences of Ensure departmental Number of incidences Data not available Data not available Data not available Data not available
CHAPTER FIVE: Functional Statistics Analysis

fruitless and wasteful compliance with leg- of fruitless expenditure

expenditure and the R islation and no audit

pg 295
value thereof qualifications R value of fruitless
expenditure

2009/06/04 09:30:21 AM
 d) Project Progress

Annual Report v2.indd 296

Comments/

pg 296
PROJECT n/ Adjustments R spent end
KPA Project number Fund R start fin yr Ward Corrective Ac-

//
aME budget June 2008
tion
Decentralise service Akasia Offices: 7 119 14 1 6 000 000 4 Phase 1: Completed
delivery closer to Combined One (complete at least
communities that Stop Offices for 6 up to foundation
provides one-stop Sections level if weather, cir-
comprehensive cumstances permit)
municipal services
and integrated gov-
ernment information
and communication
centres

City of Tshwane Annual Report 2008/2009

CHAPTER FIVE: Functional Statistics Analysis

2009/06/04 09:30:27 AM
 CHAPTER FIVE: Functional Statistics Analysis

5.4.3.2 Economic Development

(a) Overview

The City of Tshwane through the Department of Economic Development continues to position it-
self in a manner that seeks to provide leadership and facilitate strategic partnerships in economic
development to create an enabling environment that seeks to ensure economic competitiveness,
growth, job creation and poverty eradication as anticipated by the Tshwane Growth and Devel-
opment Strategy (TGDS) and City Development Strategy (CDS).

In this regard, City of Tshwane is the third largest economy in Gauteng with municipal provincial
economic and employment shares estimated at 19% in 2007/08. The key employment sectors
are general government services, financial and business services, manufacturing and the retail
trade. The main sectors contributing to the economic output were wholesale and retail trade,
manufacturing and transport and communications.

According to extrapolated data from Global Insight, the City of Tshwane’s economy has been
on a gradual upward trend, having yielded a higher than national average annual GDP of
R138,847,325,000 (which represents a growth rate of 5,9% in 2007/08), whereas GVA is esti-
mated at 4,7% in the same period. This upward growth trend was accompanied by an additional
13 832 new jobs (ie from 83 498 jobs in 2006 to 97 330 jobs in 2007), therefore lowering the
unemployment rate to 19%. To sustain the higher growth trajectory, the City of Tshwane continues
to develop and implement sector development strategies and policies that seek to integrate the
second economy whilst encouraging the growth of the first economy.

These interventions include targeted economic integration and incentives programmes towards
SMME and CooperativeCooperatives Development, Export Market Development and Promotion,
Investment Attraction and Business Retention, Business Regulation, Economic Infrastructure De-
velopment, Broad Based Black Economic Empowerment and Sector Development and Support.
In addition, City of Tshwane also intensified engagements with strategic stakeholders such as
Tshwane Business Council and also entered into strategic partnerships with like-minded private
and/or public organisations.

The strategic objective of the Local Economic Division is to provide leadership and facilitate stra-
tegic partnerships in economic development to ensure competitiveness, growth, job creation and
poverty eradication as anticipated by the TGDS through:

• SMME and CooperativeCooperatives Development;

• Export Market Development and Trade Promotion;
• Investment Attraction and Business Retention;
• Business Regulation;

City of Tshwane Annual Report 2008/2009 // pg 297

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 CHAPTER FIVE: Functional Statistics Analysis

• Economic Infrastructure Development;

• Broad Based Black Economic Empowerment; and
• Sector Development and Support.

The role of the Tshwane Market is to provide a central marketing distribution system primarily
for the City of Tshwane and secondarily for the rest of South Africa. In the execution of its role
as the central distribution system for the City of Tshwane the market strives to fulfil the following
objectives:

• To enhance food security for the City of Tshwane by attracting fresh produce to the market;
• To enhance food safety for the City of Tshwane by regularly inspecting and testing fresh pro-
duce sold at the market;
• To provide infrastructure and services which satisfy the market users’ needs;
• To contribute towards the city’s economic growth; and
• To contribute towards the city’s job creation targets.
• Tshwane market has the following sections:
• Trading Infrastructure and Operations provides specialised services in the following fields:
- Trading Operations Management
- Trading Infrastructure Management
• Trading Operations Support provides specialised services in the following fields:
- Financial Services
- Information Technology Services
- Security Management Services

Market System Development provides specialised services in the following areas:

• Project Management Services

• Market Development and Client Information

Tourism as a Division of the Economic Development Department has as its main responsibility the
achievement of the second City Strategic Objective, “to accelerate higher and shared economic
growth and development”. It seeks to achieve this by “optimising city-wide Tourism opportunities
from a Cultural, Business and Capital City status perspective”.

The overall approach to tourism development and promotion is to ensure sustainable and re-
sponsible tourism development that aims to encourage all tourism stakeholders to jointly grow
the tourism economy in Tshwane whilst providing social and economic benefits to local commu-
nities and respect for the environment.

Sustainable and responsible tourism development explicitly recognises interdependence between

environmental, communal, industry, economic and policy issues, and is specifically aimed at

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 CHAPTER FIVE: Functional Statistics Analysis

protecting and enhancing both the natural and cultural environment, while meeting basic human
needs, promoting equity and resulting in an improved quality of life for all.

The Department of Agriculture and Environmental Management is a completely new department

with a new Agricultural Division and its associated migrated functions from Economic Develop-
ment, Health and Social Development, Housing and Waste Management and new migrated
functions that include Streetscape Management and Climate Change Control. The Agriculture
Management Division comprises the following two Sections:

• Agricultural Policy, Planning and Enhancement

• Agricultural Development Programme Management

The mission of the Agriculture Management Division is to facilitate agricultural information dis-
semination, resource mobilisation, programme and projects and the formation of necessary
effective partnerships.

(b) Description of key issues

The Tshwane Market is situated in ward 3 and serves residents, businesses and producers across
the length and breadth of South Africa.

There are 19 markets throughout South Africa that are managed by a market authority (ie a
local authority) or a market management company (ie a private company/organisation). These
markets provide a physical market place for the distribution of fresh produce in the country. Their
primary clients are producers and buyers from all provinces within the country and they compete
with each other for both the producers’ and the buyers’ business. The following diagram provides
an illustration of how the market functions as a distribution centre:

Diagram 1: Overview of Distribution Channel

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 CHAPTER FIVE: Functional Statistics Analysis

Although the market contributes significantly towards the food safety and food security of the
city, few households buy directly from there. Produce sold at the market can be classified into the
following broad categories:

a) 48% of produce is sold to wholesalers and retailers.

b) 11% of produce is sold to chain stores.
c) 35% of produce is sold to the informal sector.
d) 5% of produce is sold to contract buyers and processors.
e) 1% of produce is sold to households.

The following chart provides a more detailed segmentation of the Tshwane Market’s sales ac-
cording to the type of buyer:

Chart 1: Buyer Segmentation of Produce Sales for the Tshwane Market

Markets play an important national role in the country’s economy and contribute about R7, 8
billion (2007/08) thereto. About 75% of produce sold takes place at four markets in the country
viz Johannesburg, Tshwane, Cape Town and Durban markets. For the 2007/08 financial year the
Tshwane Market’s turnover (ie produce sales) amounted to about R1, 4 billion which represents
a market share of 17, 9% and growth of 21, 05%.

Agriculture is the link to sustainable and broad based development and poverty eradication
in the City of Tshwane. It is a source of food and can provide employment opportunities to its
citizens. To ensure that Agriculture fulfils this role, the City of Tshwane developed an Agriculture
Development Policy which is intended to provide a framework for sustainable, integrated and
coordinated development of Agriculture and related activities in the City of Tshwane.

The Tshwane Agricultural Policy is a City and Stakeholder response to both the implementation
requirements of the Tshwane Growth and Development Strategy and Accelerated and Shared
Growth Initiative for South Africa” (ASGISA). It is a response which is in line with the two of the
five City core development strategies namely:

• Promote accelerated and shared economic growth and development ;

• Fight poverty and build clean, healthy safe and sustainable communities.

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 CHAPTER FIVE: Functional Statistics Analysis

The vision of the Policy is:

“A delivery-focused, people-centred agricultural activity that accelerates and promotes

sustainable economic growth and profitable partnerships in Agriculture to the mutual
benefit of related sectors and the residents of Tshwane.”

This will be in operation through the Tshwane Integrated Agricultural Development Strategy.

(c) Analysis of the Function

Statistical information and R expendi- 2006/07 2007/08

ture
No Cost No Cost
Number and cost to employer of all Economic 319 R 45,717,256
development personnel:
Professional (Directors/Managers) 54 R 16,115,551 SED: 6 3 791 093
FPM 105 :11 6 890 925
LED: 11 5 887 588
T: 8 4 430 219
Total 36 20 999 825
Field (Supervisory/Foremen) SED: 0 0
FPM: 35 5 455 318
LED: 0 0
T: 4 1 438 632
Total 39 6 893 950
Office (Clerical/Administrative) 202 R 23,655,459 SED: 4 683 515
FPM: 73 10 049 266
LED: 15 5 347 136
T: 8 1 107 799
Total 100 17 187 716
Non-professional (blue collar, outside workforce) SED: 0 0
FPM: 61 6 316 682
LED: 5 370 146
T: 17 204 000
Total 83 6 890 828
- Temporary 25 R 1,969,595 FPM: 12 FPM:
R89,597
- Contract 38 R 3,976,651 FPM: 2 FPM:
R11,616
Note: total number to be calculated on full-time
equivalent (FTE) basis, total cost to include total
salary package
Detail and cost of incentives for business invest- R (000s)
ment:
TATA, Wonderboom Airport R106 million No data
available
Number of people employed through job creation No data
schemes: available
- Short-term employment 3663
- Long-term employment 100

105
Fresh Produce Market (FPM)

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 CHAPTER FIVE: Functional Statistics Analysis

Statistical information and R expendi- 2006/07 2007/08

ture
No Cost No Cost
Note: total number to be calculated on full-time
equivalent (FTE) basis, and should only be based
on direct employment as a result of municipal
initiatives
Type and number of grants and subsidies re- R (000s)
ceived:
Grant from Gauteng Tourism Authority (GTA) for 1 R400 000,00 No data
feasibility study for Mamelodi Rondavels (Tourism available
Division)
2010 FIFA World Cup funding received from R27 million R 41 000 000 No data
Department of Transport (DoT) (Operational) available
and R14 mil-
lion (Capital)
Note: total value of specific planning and devel-
opment grants actually received during year to be
recorded over the five quarters - Apr to Jun last
year, Jul to Sep, Oct to Dec, Jan to Mar, Apr to
Jun this year.

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Annual Report v2.indd 303
(d) Key Performance areas

Activities/ Initia- Five-year pro- Achieved

KPA KPI Target 2007/08 Actual 2007/08 Rating Corrective Actions
tives gramme target 2006/07
Leverage growing Facilitate growth in % Growth in the City 4,5% per annum 4,5% No data available
and strategic sec- the tourism market of Tshwane tourism
tors in the City in a of overnight visitors market of over-
way that optimizes night visitors in the
investment oppor- Gauteng region
tunities and focus
on establishing an
integrated economy
Implement the Tour- Number of pro- 5 5 5 5 Target achieved
ism master plan grammes of the Tsh-
wane tourism master
plan implemented.
- Township Bed and 25 BandB’s and 1 Advice was given 30 Township Band 30 Target achieved
Breakfast - Commu- tavern to establishment B’s to be capaci-
nity Capacitation owners to improve tated
the quality of their
establishments to
meet the standard.
SA Host Training 55 hosts trained 30 hosts trained 0 hosts trained Report was approved late and
there was no sufficient time to
advertise a tender and imple-
ment the training before June
2008, as the budget allocated
was R100 000, 00. The allo-

City of Tshwane Annual Report 2008/2009 //

cated budget was then used for
CHAPTER FIVE: Functional Statistics Analysis

paying the advertising cost for

advertising on radio stations the

pg 303
announcement for the tourism
information audit.

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 Activities/ Initia- Five-year pro- Achieved
KPA KPI Target 2007/08 Actual 2007/08 Rating Corrective Actions

Annual Report v2.indd 304

tives gramme target 2006/07

pg 304
Township Tour 46 tour guides Owing to commit- 30 tour guides 0 tour guides Report was approved late and

//
Guide Training ment many people trained trained there was no sufficient time to
did not attend the advertise a tender and imple-
Workshop ment the training before June
2008, as the budget allocated
was R100 000, 00. The allo-
cated budget was then used for
paying the advertising cost for
advertising on radio stations the
announcement for the tourism
information audit.
Creating platforms 15 SMMEs 15 SMMEs 15 Achieved
for emerging Tour-
ism Businesses In-

City of Tshwane Annual Report 2008/2009

ternational Pretoria
Show;
- Freedom Day 150 SMMEs 50 SMMEs 100 Achieved
CHAPTER FIVE: Functional Statistics Analysis

Exhibitions
150 SMMEs 50 SMMEs 75 Achieved
- Women’s day
Exhibitions 139 signs 100 signs 110signs Achieved

Tourism Signage- To
develop Tourism
infrastructure.%
growth as stipulated
in Tourism Master
Plan.

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 Activities/ Initia- Five-year pro- Achieved

Annual Report v2.indd 305

KPA KPI Target 2007/08 Actual 2007/08 Rating Corrective Actions
tives gramme target 2006/07
Execute Tourism Number of tourism 2 major Interna- 2 regional exhibi- 2 regional exhibi- Achieved.
Events Implementa- events implemented tional/regional tions tions 1. Pretoria International Show
tion Programme exhibitions 2 national exhibi- 2 national exhibi- from 22 August – 2 September
by planning and 4 major local/ tions tions 2007
executing exhibitions domestic tourism 3 international 3 international 2. S A Week in Washington
and events exhibitionsW exhibitions exhibitions DC 23 September – 1 October
2007
3.African Iron Horse Rodeo – 12
– 14 October 2007
4.International Fair on 3
November 2007 at the Union
Buildings lawns
5. Meetings Africa, Sandton
Convention Centre: 28 February
– 1 March 2008
6. Tourism Indaba in Durban
from 10 – 13 May 2008
Execute Critical 1 Directory 1 Directory A mobility impaired A-Z Guide/
Success Factors Directory was developed
implementation
by facilitating and
promoting initiatives
for improvement
of accessibility –
Batho-Pele principle
Physically chal-
lenged friendly
facilities
Execute Tourism 1 Collaborative 1 Collaborative 1 Tshwane Tourism Awards on 11
Training and Skills Award Award April 2008, hosted at SA Reserve
Development Bank, Tshwane

City of Tshwane Annual Report 2008/2009 //

Programme by
CHAPTER FIVE: Functional Statistics Analysis

coordinating the
execution of the

pg 305
annual Tshwane
Tourism Awards

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 Activities/ Initia- Five-year pro- Achieved
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tives gramme target 2006/07

pg 306
Review and align the Tshwane Re- 1 0 RTO could not be established

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organisational struc- gional Tourism due to organised labour re-
ture to the strategic Organisation (RTO) questing more involvement and
objectives established as per information
business plan by 30
June 2008
Clustering Process- 54 30 6 Associations
Community Tourism.
Facilitate growth of Turnover of the Tsh- FPM: R 2 470 FPM: R1 169 million FPM: R1 271 million FPM: R1 415 million Target achieved
agricultural trad- wane Fresh Produce million
ing in the City of market
Tshwane
Market share of FPM: 18,5% FPM: 17,6% FPM: 17,5% FPM: 17,9% 0,47% better than targeted%

City of Tshwane Annual Report 2008/2009

Fresh produce
markets in SA Achieved. Good performance
attributed to efficient and neat
CHAPTER FIVE: Functional Statistics Analysis

facilities, a strong focus on

clients and service delivery
Total R of Fresh FPM: R 12 400 FPM: R6 738 million FPM: R6 800 million FPM: R7 879 million
produce markets million
in SA
Growth in turnover 2% better than The market achieved Better than industry Market: 21,05% Achieved. Good performance
industry a growth in turnover growth attributed to efficient and neat
of 14.09% Industry: 16,93% facilities, a strong focus on
clients and service delivery.
Growth in mass 2% better than Market achieved a Better than industry Market: -3,01% Achieved. Good performance
industry growth in mass of growth attributed to efficient and neat
7.42% Industry: -8,72% facilities, a strong focus on
clients and service delivery.

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Annual Report v2.indd 307
Activities/ Initia- Five-year pro- Achieved
KPA KPI Target 2007/08 Actual 2007/08 Rating Corrective Actions
tives gramme target 2006/07
% Utilisation of rent- 98% 92% 95% 97% Target exceeded. Well drawn
able floor space- up lease contracts and constant
offices demand for facilities.
% Utilisation of rent- 98% 99.51% 95% 96% Target exceeded. Well drawn
able floor space- up lease contracts and constant
stores demand for facilities.
Establish strategic Focus the major- Number of strategic 14 sectors Automotive sector 1) A major new R400 million in Scoping Studies were under-
partnerships to ity of trade/invest- sectors invested in investment by Ford Business Process taken on the development of
Motor Company
ensure a focused ment initiatives on as a result of initia- Outsourcing, Agro- identified sectors
world-wide (ie T6
common vision and growing/strategic tives facilitated by business contract), and processing and
good economic economic sectors in City of Tshwane. it is envisaged that an Manufacturing
governance value the City of Tshwane initial additional invest-
system ment of R670 million
will be made in the
Silverton facility and
R540 million in the Port
Elizabeth engine plant
2) The TATA Auto-
mobile Corporation
recently purchased
the old NISSAN Diesel
plant in Rosslyn for R32
million. The total initial
investment in both
initiatives will exceed
R725 million.
3) NISSAN Diesel
South Africa is investing
R11, 9 million in its
Rosslyn plant to cater
for a greater demand
in commercial trucks.

City of Tshwane Annual Report 2008/2009 //

The company also
plans to invest a further
CHAPTER FIVE: Functional Statistics Analysis

R8 million in its opera-

tions to cater for the

pg 307
new NISSAN Diesel
QUON series of trucks

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tives gramme target 2006/07

pg 308
Number of invest- 20 - Pre-feasibility study 4 Automotive Sector The ICT, Logistics Hub and Bio-

//
ment/trade promo- into the ITC sector Support Report Tech clusters were transferred to
tion initiatives that - Pre-feasibility study Agriculture and Environmental
focus on growing/ into the logistics Management, Public Works and
strategic sectors of cluster Infrastructure and the Office
the economy as a - Pre-feasibility into of the CIO. There’s ongoing
proportion of all the Bio-Tech cluster consultation between LED and
investment/trade the above department.
promotion initiatives
Facilitate strategic Percentage of 20 1 4 Through maintain-
partnerships with strategic partner- ing a visible pres-
economic roleplay- ships 106 that result ence in the Rosslyn
ers to increase in direct investment Auto Supplier Park
investment in Tshwane and regular contacts

City of Tshwane Annual Report 2008/2009

with strategic stake-
holders, it resulted
in large scale invest-
CHAPTER FIVE: Functional Statistics Analysis

ments that have

been generated and
others that are in the
pipeline
Regeneration and Facilitate the im- Number of business 1 275 1 368 Target achieved
development of provement / regen- licenses cancelled/
potentially viable eration of economic expired per eco-
economic nodes nodes nomic node
focusing on the in-
ner city and targeted
areas based on
efficient land use

106
A strategic partnership is considered concluded when a MOU has been signed. The partnership is considered strategic when the MOU states the investment in monetary terms of the partner to be made in a strategic/growing sector in the city, e.g. an MOU
with an international bank, where direct investment is forthcoming to Tshwane by the establishment of a branch of the bank in the city or the set of a banking call centre in the city etc. (knowledge-intensive industries)

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Annual Report v2.indd 309

tives gramme target 2006/07
Number of 4 0 2 1)Commissioned
economic nodes Urban Econ to
regenerated as per develop a Business
business plan Retention and At-
traction Strategy
2)Entered into a
partnership arrange-
ment with NWDC/
AIDC to establish
enterprise incuba-
tors in Babelegi and
Ga Rankuwa
Issue/renew busi- Number of licences New informal trade No data available
ness licenses issued/renewed stalls and mainte-
nance of stalls (59)
New hawkers
licenses (580)
Renewals of hawkers
licenses (361)
Event licenses (119)
New trading permits
(66)
Renewals of existing
stand permits (563)
Formal business
(361)
Increase participa- Women’s Month 45 45 40 75 Target achieved
tion and broaden Workshop- Recog-
the contribution in nising Women in the
growing the city’s Tourism industry.
economy through
the development

City of Tshwane Annual Report 2008/2009 //

of the SMMEs, Co-
CHAPTER FIVE: Functional Statistics Analysis

operativeCoopera-
tives, the informal

pg 309
sector and the role
of black people,
women and youth

2009/06/04 09:31:23 AM
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pg 310
Youth in Tourism 35 35 35 0 There was a delay due to the

//
Conference-ca- MOU that was supposed to be
pacitating of young signed by the City of Tshwane
people and Youth in Tourism; finally the
new SED recommended that the
relationship not be based on an
MOU, as it has legal conse-
quences and recourses that can
cost Council and the Youth in
Tourism money unnecessarily.
It was however postponed for
the 2008/09 financial year on
agreement.
HIV Training –rais- 18 Townships 18 Townships 0 HIV training was a once off

City of Tshwane Annual Report 2008/2009

ing awareness in training organised by TEP (Tour-
different Townships ism Enterprise Programme).
in Tshwane
CHAPTER FIVE: Functional Statistics Analysis

Develop and Number of Informal 60 traders per 60 informal traders 60 traders 60 informal traders Achieved. Use of reliable service
support at least 8 Traders trained financial year trained by 30 June were trained by 30 provider.
000 SMMEs and/ (Number of SMMEs 2007 May 2008.
or cooperatives by developed)
2011 100% class at-
tendance was
achieved.
936 (LED) 300 (LED) 395 (LED These include various training
programmes for SMMEs
Number of SMMEs FPM: 250 FPM: 165 FPM: 117 FPM: 177 Target achieved
supported 48 (LED) 1200 (LED) 1440(LED) These include SMMEs and
cooperativecooperatives who
attended workshops and infor-
mation sessions

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Annual Report v2.indd 311
Activities/ Initia- Five-year pro- Achieved
KPA KPI Target 2007/08 Actual 2007/08 Rating Corrective Actions
tives gramme target 2006/07
Number of coop- 6 7 These are new cooperativeco-
erativecooperatives operatives that have been estab-
developed lished through LED support
Number of coop- 80 165
erativecooperatives
supported 650 potential coop-
erativecooperatives
reached through
road shows
Use local vendors Percentage of local By 2010 80% of FPM: 82% FPM: 85% FPM: 85% Target achieved
vendors used by the total vendors used LED: 75% LED: 90%
department for non by the Municipality
specialised services are local.

FPM: 85%
Ensure the safety Ensure a safe mar- % Successful ap- 64% Successful ap- 50% 50% Successful ap- 69% Successful ap- Most of the vacancies for the
of our communi- keting environment prehensions prehensions prehensions prehensions section Market Safety Services
ties, businesses have been filled. This has im-
and roads through proved the overall effectiveness
fostering a culture of of security.
respect for the rights
of all, the laws that
govern us all and
a high moral and
ethical standard
Entrench a customer Respond to cus- Number of customer FPM: n/a FPM: 0 FPM: This target is FPM: 2
focused approach tomer complaints complaints received not to be projected
to citizenry and per function but the objective

City of Tshwane Annual Report 2008/2009 //

business by setting is to respond to
CHAPTER FIVE: Functional Statistics Analysis

standards that we all complaints and

achieve guided reduce the number

pg 311
by the Batho Pele through improved
principles. service delivery

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pg 312
Prudent financial Manage remunera- Remuneration as FPM: 62% FPM: 64% FPM: 64% FPM: 63% FPM: Target achieved

//
management tion to be within RG a percentage of
targets the total adjusted
operating budget
Sound human Train employees Number of employ- FPM: All employees FPM: 131 FPM: 134 FPM: 156 FPM: Target achieved
resource manage- according to the ees trained to be trained
ment departmental skills
development plan
Implement a work- Percentage of FPM: 59% FPM: 58% FPM: 100% FPM: 88% FPM: External service provider
place skills plan operating budget
spent on implement-
ing the workplace
skills plan

City of Tshwane Annual Report 2008/2009

Manage employee Percentage of em- FPM: 90% FPM: 100% FPM: 90% FPM: 100% FPM: Target exceeded
grievances ployee grievances
finalised
CHAPTER FIVE: Functional Statistics Analysis

Manage employee Number of em- FPM: n/a FPM: 4 employees FPM: n/a FPM: 3 employees
discipline ployees disciplined disciplined in terms disciplined in terms
according to the dis- of disciplinary of disciplinary
ciplinary procedure procedure procedure
Cascade scorecards Levels to which the FPM: Level 5 FPM: Level 5 FPM: Level 5 FPM: Level 5 FPM: Target achieved
down to all organi- scorecards have
sational levels been cascaded
E-governance Integrated account 2 Smart box units 2 smart box units 2 Smart box units 0 Smart Box units 2 Smart box units were imple-
payment solution were implemented mented by April 2007. FNB
using smart box by April 2007 identified further critical back
technology at the office development. As a result
FPM implementation was postponed
to July 2008. Absa has been
appointed as the market’s new
banker with effect from 1 July
2007. In the light thereof and
problems experienced with FNB
the project has been suspended

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Annual Report v2.indd 313
Activities/ Initia- Five-year pro- Achieved
KPA KPI Target 2007/08 Actual 2007/08 Rating Corrective Actions
tives gramme target 2006/07
Electronic sales % availability of 99,5% System avail- 99,6% 99,5% System avail- 99,6% System avail- Regular maintenance of network
system Electronic sales ability ability ability according to maintenance plan.
system Good network support from IMD
and service providers.
Perform risk man- Ensure departmental No incidences of FPM: 0 FPM: 0 FPM: 0 FPM: 0 FPM: Target achieved
agement compliance with fruitless and wasteful
legislation and no expenditure and the
audit qualifications R value thereof
Consignment audits Number of audits 300 per annum 330 Audits 25 Audits per month 302 Target exceeded. Attributed to
at the market agents conducted equals to 300 per pro-active planning.
year
Audits on direct R recovery of market R3 m R 1 012 896.14 R1,2 m R2,2 Target exceeded. Increase attrib-
deliveries to tenants: dues direct turnover uted to better and more focused
recovery of market achieved control measures.
dues
Facilities manage- Maintenance of Percentage of 95% 98.43% 95% 96% On target. Can be attributed to
ment buildings at the maintenance budget pro-active planning.
market spent

City of Tshwane Annual Report 2008/2009 //

CHAPTER FIVE: Functional Statistics Analysis

pg 313

2009/06/04 09:31:43 AM
 CHAPTER FIVE: Functional Statistics Analysis

5.4.4 Health

The Vision of the Health and Social Development department is ensuring a healthy and em-
powered community and the mission is to facilitate and provide an integrated and comprehen-
sive system of health and social services, facilities and programmes to promote a poverty-free,
healthy, safe and sustainable community in Tshwane.

The Health and Social Development Department has three divisions and two units, namely:

• Integrated Community Development (ICD)

• Primary Health Care Services in clinics (PHC),
• Pharmaceutical Services
• Municipal Health Services (MHS)
• Emergency Medical Services (EMS) (Previously placed at the community Safety Department)
• HIV and Aids Unit
• Management and Office Administration Unit

a.Overview and description of key issues

The Health Act 61 of 2003 defines municipal health services as water quality monitoring, food
safety, waste management, health surveillance of premises, control of communicable diseases,
vector control, and environmental pollution control, disposal of the dead and chemical safety.
Currently the Municipal Health Services Section is only doing 25% of the duties prescribed in the
Act.

Provincial Health Legislation rules that emergency medical services and primary health care ser-
vices are functions of the Province, but according to section 56 of the Constitution the functions
should be closest to the people. Salga is also against centralising the services on provincial level.
The updated Tshwane Aids Strategy 2007 – 2011 makes provision for the City of Tshwane to
respond optimally to the Aids epidemic. Issues that need to be implemented are: mainstreaming
HIV and Aids in departmental plans, contingency measures to ensure the maintenance of ser-
vices, risks management and programmes to ensure the support to employees.

5.4.4.1 Environmental Health

Some Key issues facing Environmental Health Services/Municipal Health Services (MHS) are:

• Issues relating to vagrants, the homeless, immigrants and asylum seekers, especially those
in Marabastad and surrounding.
• Bad buildings giving a picture of dilapidation in some parts of the City.
• Recent xenophobic activities displacing people to areas of less resources and services.

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 CHAPTER FIVE: Functional Statistics Analysis

• Pollution of streams through waste and or illegal activities.

• Certain informal settlements not meeting minimum acceptable standards of hygiene and
human habitation.
• Informal traders in the city not conforming to standards in terms of hygiene and food regula-
tions, eg chopping of bovine heads in the streets, and maize cooking activities.
• Animal care issues in some areas not complying to the by-laws
• Vector Control complaints
• Illegal dumping in some areas of Tshwane, particularly in some townships and suburbs.
• Some public places still not complying to Tobacco control Regulations.
• Atmospheric pollution activities such as burning of tires, particularly in cold weather months.
• Insufficient public toilets in the city and its surroundings.
• Handling and disposal of Health Care Risk Waste (Medical Waste).
• Some initiation schools operating without proper registration
• Overgrown stands not well cared for.
• Illegal conversion of buildings into churches and /or residential premises not in line with
zoning and or land use rights.

5.4.4.2 Primary Health Care

The Service Level Agreement on Primary Health Care (PHC) and the Memorandum of Under-
standing (MOU) on the Emergency Medical Services (EMS) between the City of Tshwane and the
Gauteng provincial government states that the City of Tshwane has to maintain the current level
of service delivery. A number of local government clinics need extensions and upgrading.

Primary Health Care services are 27% subsidised by province. The total Local Government (LG)
budget for PHC was R 85 403 515 with a subsidy of R23 million from Gauteng Provincial Ser-
vices. Medicines are supplied in kind to municipal clinics by the provincial government. The sub-
sidy also does not include the Laboratory tests from LG clinics. All vacant Health Services posts
in clinics are now being filled by provincial services.

R spent
Adjust-
Project at the
Division Project Name Budget ments Ward
number end June
budget
2008
Health Care Extension of Stanza Bopape 710201 1,320,000 1,254,000 1,253,891 17
Clinic
Health Care Extensions Lotus Gardens 710203 1,500,000 1,425,000 1,424,028 7
Clinic
Health Care Upgrading of Clinic Dispen- 712278 2,000,000 1,900,000 1,896,162 Tsh-
saries wane
wide

City of Tshwane Annual Report 2008/2009 // pg 315

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 CHAPTER FIVE: Functional Statistics Analysis

5.4.4.3 Ambulances (Emergency Medical Services)

Currently the ambulances are operated from the Primary health Care Clinics. These new ar-
rangements work well as the emergency medical services are now nearer to the community and
more accessible to the citizens.

The total operational expenditure for 200708 for EMS is R56 800 000 with a subsidy of R34
000 from Provincial Services. The subsidy excludes the provision of the ambulances to the EMS
services.

EMS is responsible for the following services:

• Pre-hospital care of patients

• Transport of patients
• Inter-hospital transfers
• Special events and standby services

Call Analysis:

Novem- March
Percent- July - Percent-
Total ber 2007 2008 Total
Type age of October age of
2006 /07 - Febru- - June 2007 /08
Total 2007 Total
ary 2008 2008
Priority 1 912 1,3% 253 223 345 690 1%
Priority 2 34 073 47% 12919 12719 14567 34 205 42%
Priority 3 21 594 30% 20498 6728 7234 24 460 30%
Priority 4 1 042 1,4% 703 401 526 1 488 2%
Total trans- 57 621 79,7% 60 843 74%
port
No service/ 14 632 20,3% 6 331 6 704 7 982 21 017 26%
transport 107
Total 72 253 100% 40 704 26 775 30654 81 860 100%

107
No services transport is high, as when LG ambulances arrived at the scene the private ambulances have already responded to the calls - especially Motor
Vehicle Accidents. (The private ambulances then take the patients with medical aids to private hospitals.)

The increase of calls for ambulances is the result of the increase of traffic volume, influx of people
to Tshwane and the AIDS/TB epidemic.

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 CHAPTER FIVE: Functional Statistics Analysis

Breakdown of types of incidents:

November
Total July -
Total 2007 to March to Total
Type 2006 /07 October
2006 /07 February June 2008 2007 /08
(%) 2007
2008
030 Pedestrian 3 030 3.69% 3.227% 3.01% 3.27% 3.19%
031 Motor 5 983 7.28% 6.01% 5.61% 6.10% 5.92%
032 Taxi 354 0.43% 0.48% 0.40% 0.35% 0.40%
033 Bus 55 0.07% 0.08% 0.04% 0.07% 0.06%
034 Aeroplane 3 0,00% 0,00% 0,00% 0.01% 0,00%
035 Heavy Vehicle 219 0.27% 0.20% 0.22% 0.15% 0.19%
036 Department 157 0.19% 0.20% 0.10% 0.05% 0.11%
Vehicle
037 Train 30 0.04% 0,00% 0.01% 0.02% 0.01%
038 Fell From A Train 343 0.42% 0.18% 0.18% 0.21% 0.19%
039 Motorbike/Bicycle 868 1.06% 0.69% 0.57% 0.64% 0.63%
040 Assault 11 560 14.06% 11.96% 12.55% 11.80% 12.08%
041 Domestic Accident 1 461 1.78% 1.26% 1.21% 1,00% 1.15%
042 Industrial Accident 338 0.41% 0.44% 0.41% 0.37% 0.40%
043 Sport Injury 189 0.23% 0.08% 0.08% 0.10% 0.09%
044 Gun Shot 809 0.98% 0.82% 0.98% 1,00% 0.94%
045 Burns 274 0.33% 0.48% 0.40% 0.45% 0.44%
046 Amputation 16 0.02% 0.02% 0.02% 0.03% 0.02%
047 Bleeding 1 589 1.93% 1.66% 1.47% 1.01% 1.35%
048 Animal Attack 256 0.31% 0.12% 0.20% 0.14% 0.15%
049 Dislocation 330 0.40% 0.93% 1.27% 1.11% 1.10%
050 Medical 12 438 15.13% 19.27% 20.79% 20.23% 20.11%
051 Maternity 5 658 6.88% 9.13% 8.76% 8.86% 8.91%
052 Asthma 833 1.01% 1.70% 1.34% 1.59% 1.55%
053 Epilepsy 2 239 2.72% 1.85% 1.56% 1.30% 1.55%
054 Diabetic 1 423 1.73% 1.17% 1.04% 1.02% 1.08%
055 C.V.I. 487 0.59% 0.64% 0.80% 0.62% 0.68%
056 Heart Attack 1 361 1.66% 1.20% 1.28% 1.15% 1.20%
057 Drowning 355 0.43% 0.02% 0.06% 0.02% 0.03%
058 Psychiatric 1 923 2.34% 0.28% 0.29% 0.34% 0.29%
059 Anaphylaxis 150 0.18% 0.07% 0.07% 0.06% 0.07%
060 Asphyxia 2 458 2.99% 2.12% 1.71% 1.57% 1.78%
061 Unconscious 1 255 1.53% 0.60% 0.61% 0.48% 0.56%
062 Paediatric 1 210 1.47% 2.67% 3.04% 2.39% 2.68%
063 Collapse 2 629 3.20% 3.92% 3.54% 3.54% 3.66%
064 Transfer Of Patient 14 195 17.27% 20.28% 20.18% 23.30% 21.40%
065 Full Resuscitation 940 1.14% 1.43% 1.25% 1.42% 1.37%
066 Emphysema 39 0.05% 0.02% 0.02% 0.02% 0.02%
067 Suffocation 31 0.04% 0.02% 0.02% 0.02% 0.02%
068 Contagious 1 508 1.83% 1.79% 1.57% 1.43% 1.58%
Diseases
069 Rape 38 0.05% 0.01% 0.05% 0.02% 0.02%
070 Miscarriage 1 005 1.22% 0.98% 0.88% 0.84% 0.89%

City of Tshwane Annual Report 2008/2009 // pg 317

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 CHAPTER FIVE: Functional Statistics Analysis

November
Total July -
Total 2007 to March to Total
Type 2006 /07 October
2006 /07 February June 2008 2007 /08
(%) 2007
2008
200Jump Of A Struc- 96 0.12% 0.10% 0.13% 0.10% 0.11%
ture
201 Overdose 981 1.19% 0.90% 0.98% 0.89% 0.92%
202 Gassing 32 0.04% 0.04% 0.03% 0.02% 0.03%
203 Gun 43 0.05% 0.04% 0.07% 0.04% 0.05%
204 Slit Wrists 124 0.15% 0.16% 0.08% 0.05% 0.09%
205 Poisoning 722 0.88% 0.55% 0.65% 0.72% 0.65%
206 Hanging 109 0.13% 0.09% 0.24% 0.07% 0.13%
222 Bomb Threat 14 0.02% 0,00% 0.01% 0.01% 0.01%
333 Riot 2 0,00% 0,00% 0,00% 0.01% 0.01%
444 Hostage 0 0,00% 0,00% 0,00% 0,00% 0,00%
500 Injure-By Fire 1 0,00% 0,00% 0.02% 0,00% 0.01%
Works
777 Flooding 18 0.02% 0.03% 0.21% 0.02% 0.08%
888 Building Collapse 7 0.01% 0,00% 0,00% 0,00% 0,00%
999 Bee Attack 20 0.02% 0.03% 0.01% 0.01% 0.01%

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Annual Report v2.indd 319
(b) Analysis of the Function

2005/6 2006/07 2007/08

Comment/
Description
Corrective Action
No R cost No R cost No R cost
Number and cost to employer of all 189 R 36 794 545 185 R41 942 070 233 R 50 135 131 Annual increase, more overtime
ambulance service personnel: (include contract and appointment of managers
workers) and unifix allowance
- Professional (Doctors/Specialists) n/a n/a
- Professional (Nurses/Aides) n/a n/a
- Para-professional (Ambulance 185 R37 881 794 146 R 46,533,707
officers qualified)
- Non-professional (Ambulance 1 R 160 160 1 R 170 160
officers unqualified)
- Temporary -
- Contract 98 R3 900 116 86 R 3,627,904
Note: total number to be calculated R41 942 070 R 50 135 131
on full-time equivalent (FTE) basis,
total cost to include total salary
package
Number and total operating cost 3 City of 1 x City of Tshwane R (000s) 1 x City of Tshwane R (000s) All ambulances are on the pro-
of ambulance vehicles servicing Tshwane Ambu- Ambulance and 40 Ambulance and 47 vincial asset register
population: lance and 30 GPG ambulances GPG ambulances
GPG (These are the avail- (These are the avail-
able ambulances able ambulances but
4 primary re- but not manned) 6 not manned) 6 primary
sponse vehicles primary response response vehicles and
vehicles. 4 logistical car.
- Aged less than ten years <total> <cost> We do not keep ambulance

City of Tshwane Annual Report 2008/2009 //

- Aged ten years or greater <total> <cost> statistics broken down in age in
EMS
CHAPTER FIVE: Functional Statistics Analysis

Note: this figure should be taken

pg 319
from the plant replacement sched-
ule

2009/06/04 09:32:10 AM
 2005/6 2006/07 2007/08
Comment/

Annual Report v2.indd 320

Description
Corrective Action
No R cost No R cost No R cost

pg 320
//
Total annual patient head count: 62 496 57 621 60 843
- 65 years and over stats n/a stats n/a
- between 40 and 64 years stats n/a stats n/a
- between 15 and 39 years stats n/a stats n/a
- 14 years and under stats n/a stats n/a
Note: list total number transported 53621 60 843
Type and number of grants and R (000s)
subsidies received:
GPG Subsidy for ambulance 1 GPG Subsidy R38 967 006 1GPG Subsidy R34 202 000

Note: total value of specific health ambulance grants actually received during year to be recorded over the five quarters - Apr to Jun last year, Jul to Sep, Oct to Dec, Jan to Mar, Apr to Jun this year.

City of Tshwane Annual Report 2008/2009

Total operating cost of health R49 088 167 R56 779 074
(ambulance) function
Number and cost to employer of all 467 77 171 862 257 263 62719
CHAPTER FIVE: Functional Statistics Analysis

health personnel:
- Professional (Doctors/Specialists) 17 15 5 000 15 5400
- Professional (Nurses/Aides) 190 181 29 000 182 31320
Provincial Staff in LG clinics 10 27
- Para-professional (Clinic staff 25 24 5 000 33 7425
qualified)
- Non-professional (Clinic staff 34 34 4 000 28 3557
unqualified)
- Temporary 0 3 R 230 2 160
- Contract 0 0 1 145
Subsidy of Gauteng Province R18 600 R23 254
Total operating cost of health R79 mil R85 403 515
(clinic) function

2009/06/04 09:32:14 AM
Annual Report v2.indd 321
(d) Key Performance Areas

KPA KPI Achieved 2006/07 Target 2007/08 Achieved 2007/08 Rating Corrective Action

Maintain number public health Number of public health clinics 23 LG clinics, 35 Provincial 23 LG clinics, 35 Provin- 23 LG clinics, 35 Provin- The implication is that there is
clinics in Tshwane clinics and 4 Catcha clinics cial clinics and 4 Catcha cial clinics and 4 Catcha on average
clinics clinics
37 837 community members to
be served per clinic
Number of clinic users per an- 1,112,554 clinic users 1 033 861 1 176 943 Although no new staff, more
num patients are seen, with quality
to sacrifice
Ensure EDL medicine is avail- Percentage of EDL medicine 99,3% EDL medicine avail- 90% 97,7% Not applicable
able at all PHC clinics available to PHC clinics at all able to PHC clinics at all time
time
Ensure professional nursing Number of professional nurses 21.4 of professional nurses 23:100000 20:100000 Include Chief Nurse
staff are available at clinics per 100000 of uninsured popu- per 100000 of uninsured Only for the City of Tshwane
lation population
Average patients per Professional 35 39 35 Although no new staff, more
Nurse per day patients are seen per nurse
Implement at least 5 health Number of health awareness 7 5 7
awareness campaigns per campaigns implemented per
annum annum
Deliver HIV campaigns at the Number of HIV campaigns deliv- 10 10 13 Increased demand for interven-
district health level ered per annum tions
Improve TB case finding rate to TB case finding Index rate 3% 3.20% 3.20% TB cases are increasing be-
4% by 2011 cause of the AIDS epidemic.
Maintain number TB cases Number of new TB cases per 100 <500 538 <600
under 500 per 100 000 popu- 000 of population -annualised
lation

City of Tshwane Annual Report 2008/2009 //

Implement the Legislated envi- % implementation of identified 25% implementation of 27% 25% Difficult to create new posts on
CHAPTER FIVE: Functional Statistics Analysis

ronmental Health functions Environmental Health functions identified Environmental the structure. This indicator can
prescribed by the National Health Health functions prescribed only comply with the appoint-

pg 321
Act for municipal health services by the National Health Act for ment of extra staff on the staff
municipal health services establishment.

2009/06/04 09:32:19 AM
 KPA KPI Achieved 2006/07 Target 2007/08 Achieved 2007/08 Rating Corrective Action

Annual Report v2.indd 322

pg 322
Number of environmental health 0.31 0.32 0.31

//
practitioners per 15000 of
population
Support NGOs to render HIV Number of programmes initiated 7 0 0 Target for five-year programme
and Aids programmes to the and implemented by funded already achieved in 06/07
community NGOs to render HIV and Aids
services in the community
Provide ambulance services Number of patients attended to 47 026 48 000 60 843 The decrease in staff members
per year, on request in accor- are supplemented by contract
dance with provincial norms and workers which allow for higher
standards production
No of, selective, special standby 16 12 72 Target achieved
services attended to by ambu-
lance services, on request, per

City of Tshwane Annual Report 2008/2009

year
Average time taken to respond to 65% 83% Target achieved
CHAPTER FIVE: Functional Statistics Analysis

an emergency call for priority one

calls according to the set GPG
norms and standards
Expenditure management Operational expenditure 97% 95% 91% Vacant posts in clinics were
filled by Gauteng Province and
a number of vacancies in the
A group result in not spending
of funds
Train employees according to Number of employees trained 1000 1708 Exceed target as there was a
the departmental skills devel- number of training needs in
opment plan the Dept.

2009/06/04 09:32:24 AM
Annual Report v2.indd 323
KPA KPI Achieved 2006/07 Target 2007/08 Achieved 2007/08 Rating Corrective Action

Manage employee grievances Percentage of employee griev- 90% 88% 8 out of 9 grievances for the
ances finalised (Indicate number year were solved
of grievances)
Manage employee discipline Number of employees disciplined <150 per annum 31 Target achieved
according to the disciplinary
procedure
Cascade scorecards down to Levels to which the scorecards Level 5 Level 5 Target achieved
all organisational levels have been cascaded
Implement and ensure EE The number of people from the 1 SED and 3 ED in HSD. One SED and one ED post Target achieved
employment equity target groups 100% EE compliance filled. 100% EE compli-
employed in the three highest ance
levels of management in compli-
ance with the Municipality’s ap-
proved employment equity plan,
short term employment, and long
term employment. (NKPI)
Ensure departmental compli- Number of incidences of fruitless 0 0 Target achieved
ance with legislation and no expenditure, R value of fruitless
audit qualifications expenditure

City of Tshwane Annual Report 2008/2009 //

CHAPTER FIVE: Functional Statistics Analysis

pg 323

2009/06/04 09:32:29 AM
 CHAPTER FIVE: Functional Statistics Analysis

5.4.5 Community and Social Services

(a) Overview and description of key issues

5.4.5.1 Environmental Management

The aesthetics of a city not only enhances our lifestyle, but also improve our mood, sense of
belonging and ecological integrity. The Environmental Management Division is mainly respon-
sible to ensure that Tshwane residents have access to parks, landscaped public facilities, nature
reserves, resorts and swimming pools, safe, adequately maintained and aesthetic public open
spaces, and to a clean and sustainable living environment.

The mission of the Environmental Management Division is to promote ecological integrity through
the protection, utilisation and enhancement of natural and open space resources by integrating
environmental considerations into the sustained management and development of our city.
The Environmental Management Division comprises the following Sections:

• Open Space Planning

• Environmental Policy and Resource Management
• Nature Conservation and Resorts
• Parks, Horticulture and Cemetery Services Provision Management

5.4.5.2 Environmental Policy and Resource Management Section

The Environmental Policy and Resource Management Section’s strategies are based on the re-
alisation that:

• The City of Tshwane’s own activities and operations can degrade the environment;
• The City of Tshwane as an organ of state must give effect to the Constitutional Rights of the
community to have the environment protected and should therefore hold the environment in
trust for communities.

The Section therefore focuses on:

• Corporate environmental compliance and responsibility;

• State of the environment reporting;
• Environmental information management to guide decision making;
• Providing environmental policy directives relating to governance issues and environmental
protection;
• Providing information to guide decision making;
• Facilitating environmental education.

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 CHAPTER FIVE: Functional Statistics Analysis

5.4.5.3 Environmental Planning Section

The Section is strategically responsible for policy formulation with regard to open space planning
(Tshwane Open Space Framework) and undertakes high order strategic planning studies such as
Environmental Management Frameworks and Strategic Environmental Assessments within priority
intervention areas.

5.4.5.4 Cemetery Services

To provide aesthetically acceptable burial space for the residents of the City of Tshwane and to
render a crematorium service through:

• The supply of aesthetically acceptable burial space;

• The rendering of a cremation service.

5.4.5.5 Parks and Horticultural Services

Tshwane Parks is primarily responsible for making the city liveable through the provision of parks
and other recreation facilities. It also beautifies he city through landscaping and maintenance
of city entrances, traffic islands, malls, boulevards and squares. The Section is responsible for
the horticultural maintenance of undeveloped open space and road reserves as well as sport
facilities and Council gardens. The Urban Forestry Sub-Section plants 10 000 trees on road
reserves annually and maintains the existing more than 240 000 trees. The Nursery provides all
the plants required for the city and also trains horticultural students from the Tshwane University
of Technology. The Technical Support Services Sub-Section amongst others provides for a Park
Rangers Service.

5.4.5.6 Nature Conservation and Resorts

This section supplies, promotes and maintains urban conservation, outdoor leisure, visitor facili-
ties and water related activities to residents and tourists in the Tshwane Metro boundaries.

In pursuing the aim of the City to become an internationally acclaimed jazz capital, the Environ-
mental Management Division committed itself to the re-design and planning of Moretele Park
Recreation Resort in Mamelodi to become a world-class venue for music festivals and has to date
invested R3 660 000 to improving the facility. The city is excited at the long term vision for the
facility encapsulated in the Master Development Plan. This plan was developed in conjunction
with the local community and jazz fraternity and aims to promote Moretele Park as the premier
location for music festivals.

City of Tshwane Annual Report 2008/2009 // pg 325

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 CHAPTER FIVE: Functional Statistics Analysis

5.4.5.7 Environmental Resource Management

This section’s functions include amongst others annual reporting on the State of the Environ-
ment, an environmental policy and legislation service, environmental management systems and
programmes in the City of Tshwane, environmental risk assessment and management, execution
of environmental audits and monitoring the enforcement of mitigation conditions within EIAs (En-
vironmental Impact Assessment) as well as designing and implementing general awareness and
job specific environmental training programmes for employees of the City of Tshwane.

Since there is an increasing trend and demand for Municipalities to demonstrate transparency
and accountability beyond the domains of social and financial performance, the City of Tshwane
has decided to disclose its environmental performance through, for the first time, the inclusion of
the following environmental indicators.

i. Open Space Planning Section

The Open Space Management Section is committed to realising a sustainable Open Space Net-
work which provides the setting for our capital city, is of high international standard yet based in
the African context, empowers the community to prosper in a safe and healthy environment and
protects the integrity of its ecological systems.

A natural environment which is supportive to the present and future generations of the City of
Tshwane and which services the city and community’s socio-economic, cultural and environmen-
tal needs equitably through:

• Optimizing natural resource and socio-economic relationships towards the restructuring of

our city;
• Promoting and facilitating best practice in the sustainable protection, use and integration of
open space resources within development;
• Creating a well planned open space environment that provides and appropriate setting for
a variety of activities and benefits the city as a whole.

ii. Nature Conservation and Resorts

Ensures the effective, affordable and appropriate services relating to Nature Conservation and
Resorts through:

• The protection, conservation and use of natural resources in such a way that current and
future residents and visitors to the CTMM will benefit optimally;
• The supply, promotion and maintenance of outdoor facilities and resorts to meet the leisure
and outdoor needs of the residents and visitors to Tshwane; and

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 CHAPTER FIVE: Functional Statistics Analysis

• The supply, development and maintenance of swimming facilities in resorts; to manage these
facilities as one of the main attractions to the resorts; to include swimming related facilities;
and to enhance the diversity of leisure facilities related to water activities.

b) Analysis of the function

2005/06 2006/07 2007/08

Details
To-
Total R Total R R
tal
Number of staff associated with cemetery 35 6 419 315 35 6 419 315 35 7 484 800
services and their cost to the Municipality:
Total operating cost of community and 632 916 000 294 1 212 973 218 378 600 00
social services function:
Number of staff associated with Parks and 1049 R13 367 1053 R13 767 1467 R80,116,824
Horticultural Services and their cost to the 695 695
Municipality:
Total operating cost of Parks and Horti- R147 606 R149 835 R149,879,709
cultural Services function: 719 887
Number of staff associated with Nature 467 9 109 951 474 9 789 717 561 R23 519 455
Conservation and Resorts Services and their
cost to the Municipality:
Total operating cost of function 48 375 33 353 R67 108 900
940 137
Number of staff associated with Environ- 11 4 967 430 13 5 217 621 12 5 485 932
mental Resource management and their
cost to the Municipality:
Total operating cost of function: 5 738 886 6 041 398 6 851 666.86

City of Tshwane Annual Report 2008/2009 // pg 327

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 c) Key Performance Areas

Annual Report v2.indd 328

pg 328
Five-year
Activities/ Target Actual Comments/ Cor-

//
KPA KPI programme Achieved 2006/07 Rating
Initiatives 2007/08 2007/08 rective Actions
target

Eradicate infrastructure Provide parks in Number of new a minimum of 12 6 new parks were devel- 12 1 Only 1 new park was
backlogs areas of current parks in areas of parks in areas of oped in the North developed as no addi-
backlog backlog current backlog tional operating budget
was provided.
Provision of infrastructure Development and Number of new 12 new parks were 12 0 No additional operat-
per type as a proportion maintenance of parks for growth developed as new ing budget was provid-
to new demand/need decorative and projects and 12 existing ed. Funds were spent
(growth) play parks parks were upgraded as on existing projects
second and third phase where maintenance
projects capacity exists

City of Tshwane Annual Report 2008/2009

Provision of a Number of Plants 104 401 plants issued. 141,839 plants
nursery and train- issued issued.
ing service Value: R2,613,865
CHAPTER FIVE: Functional Statistics Analysis

Value:
R2,298,737
Ensure maintenance of Maintain/ Up- Maintenance of: All maintenance car-
existing infrastructure grade parks 339 Developed Parks, ried out as planned.
397 Undeveloped Parks,
7 Decorative Parks, 111 Problems were experi-
Developed traffic islands, enced with the renewal
47 Undeveloped traffic of the grass cutting
islands, 28 Cemeteries, contract. Labour and
106 Council Facilities, machines were hired
and 160 Sports Facili- in to deal with the
ties. problem.
Provision of a Number of Indoor 1472 indoor plants 17,502 indoor
nursery and train- plants maintained maintained. plants maintained
ing service
Value: R389,153 Value: R387,411

2009/06/04 09:32:48 AM
Annual Report v2.indd 329
Five-year
Activities/ Target Actual Comments/ Cor-
KPA KPI programme Achieved 2006/07 Rating
Initiatives 2007/08 2007/08 rective Actions
target

Decorations at Number of deco- 30 Decorations created 60 Decorations

events rations created
Income value R112,459,
Value of decora- but discounted by 100% Income value R
tions created 88,896 discount-
ed by R22,787
Urban forestry Number of trees 10 830 trees 10 000 12 000 Target achieved
planted Total of: 240 000+
Optimise labour intensity Use SMME con- Number of SMME A minimum of 50 50 48 Target achieved
and community involve- tractors/Coopera- contractors used SMME contrac-
ment tiveCooperatives tors/Cooperative-
in environmental Cooperatives per
management annum
initiatives and
operations
Regeneration and de- Open space Percentage of in- 80% of needs in The Proposed Open 3 Local Open
velopment of potentially development ner city regenera- terms of regen- Space Prioritization Plan:
viable economic nodes tion compared to eration of the in- Strategy document was Zone of Choice
focusing on the inner city the total need ner city achieved finalised Inner City local
and targeted areas based by 2011 Mamelodi West
on efficient land use

City of Tshwane Annual Report 2008/2009 //

CHAPTER FIVE: Functional Statistics Analysis

pg 329

2009/06/04 09:32:53 AM
 Five-year

Annual Report v2.indd 330

Activities/ Target Actual Comments/ Cor-
KPA KPI programme Achieved 2006/07 Rating
Initiatives 2007/08 2007/08 rective Actions

pg 330
target

//
Increase participation and Support SMMEs Number of 8000 SMMEs 48 + 7
broaden the contribu- SMMEs de- and/or coopera-
tion in growing the city’s veloped and tives by 2011
economy through the supported (that
development of SMMEs, empower black
cooperativecooperatives, people, women
the informal sector and and youth)
the role of black people, Support coopera- Number of coop- 7 The Agriculture Division
women and youth tivecooperatives eratives supported is a new establishment
constrained by both
financial and human
resources. Most of the

City of Tshwane Annual Report 2008/2009

current achievements
is the result of col-
laboration with external
CHAPTER FIVE: Functional Statistics Analysis

stakeholders
Utilise local Percentage of lo- By 2010 80% of 75% 100% Target achieved
vendors cal vendors used total vendors used
by departments by the Municipal-
for non-spe- ity are local
cialised services
Reduce the burden of pov- Provide free basic Number of 100% of applica- Target achieved
erty through an effective services to citizens indigent burials/ tions provided
indigent policy earning less than cremations
R1700 per month

2009/06/04 09:32:57 AM
Annual Report v2.indd 331
Five-year
Activities/ Target Actual Comments/ Cor-
KPA KPI programme Achieved 2006/07 Rating
Initiatives 2007/08 2007/08 rective Actions
target

Promote viable communi- Provide recre- Number of mu- 23 New resorts and Swim-
ties by establishing mixed ational facilities nicipal swimming ming Pools in progress
human settlements closer pools managed – 2 under construction
to economic opportunities Cost of municipal 10 272 433 R3 479 958
with social, cultural and swimming pools
economic development per annum
programmes that enable
Number of resorts 9 Resorts 9 Resorts
celebration of diversity and
managed 3 Caravan Parks and
foster social inclusion
several camping sites
Cost of resorts 10 674 384 29 219 293
management
Ensure the safety of our Manage danger- M2 grass cut Seasonal in Undetermined The grass cut here
communities, businesses ous situations in nature is done by the Parks
and roads through foster- the city Not to be pro- section in public open
ing a culture of respect for jected spaces
the rights of all, the laws
that govern us all and a
high moral and ethical
standard
Promote a clean, healthy Nature Conserva- Number of facili- 5 Nature Reserves 12 Nature
and sustainable environ- tion ties maintained to 3 Bird sanctuaries Gen- reserves
ment and reduce the ensure a sustain- eral urban nature areas 6 Bird Sanctuaries
burden of preventable able environment (rivers, ridges, mountains

City of Tshwane Annual Report 2008/2009 //

diseases on our people and wet lands)
and our economy includ-
CHAPTER FIVE: Functional Statistics Analysis

Cost of environ- 12 384 768 R20 003079

ing Chronic illnesses, TB, mental sustain-
HIV and Aids ability manage-

pg 331
ment

2009/06/04 09:33:01 AM
 Five-year

Annual Report v2.indd 332

Activities/ Target Actual Comments/ Cor-
KPA KPI programme Achieved 2006/07 Rating
Initiatives 2007/08 2007/08 rective Actions

pg 332
target

//
Promote a clean, healthy Formulate and Number of ? 10 10 o Shova Kulula Project
and sustainable environ- implement projects to be o Medicinal Plants Strategy
ment and reduce the environmental implemented o Green Buildings By-law
and incentives scheme
burden of preventable resource manage-
o BKB
diseases on our people ment, strategies,
o Continuous EMS’s and
and our economy includ- systems and
RAMS’
ing Chronic illnesses, TB, projects to pro-
o Continuous Environmen-
HIV and Aids mote corporate tal Audits
environmental o Office paper recycling
compliance project
o Greening of the Show
project
o Eradication of alien

City of Tshwane Annual Report 2008/2009

invasive species project
o Water Wise Municipal
Buildings (cancelled)
CHAPTER FIVE: Functional Statistics Analysis

Implement Number of 41 Cemeteries Owing to budget

environmental cemeteries and 1 Crematorium constraints the two
health functions crematoria man- additional cemeteries
according to the aged soon to be operational
National Health are without personnel
Act and OPEX.
Promote a clean, healthy Number of buri- 201 420 40 284 12 248 Burials
and sustainable environ- als/ cremations and Cremations
ment and reduce the Promote “green” Number of prod- 5 Product catego- Identify and maintain Maintain usage Usage of 10 In process of be-
burden of preventable procurement” ucts identified in ries per annum usage of 5 “green: prod- of 10 “green” green products ing included in the
diseases on our people support of green identified ucts currently procured in products cur- currently procured Environmental Best
and our economy includ- procurement, a standardised manner rently procured in a standardised Practices Guideline
ing Chronic illnesses, TB, procured by the in a standardised manner main-
HIV and Aids City of Tshwane manner tained.

2009/06/04 09:33:06 AM
Annual Report v2.indd 333
Five-year
Activities/ Target Actual Comments/ Cor-
KPA KPI programme Achieved 2006/07 Rating
Initiatives 2007/08 2007/08 rective Actions
target

Respond and Number of 60 265

manage customer customer com-
complaints in the plaints regarding
Agriculture and environmental
Environmental management
management services
department
Management and Cost of man- 2 150 385 R1 330 000
administration of agement and
environmental administration
function
Risk management No incidences None
of fruitless and
wasteful expen-
diture and the R
value thereof
Financial Sustainability Realise revenue Percentage of 85%
management generation targets planned revenue
targets realised
Plants sold 44 236 Plants sold 24 805 plants
sold
Value R628,140 (in-
come) Value 363 892
Decorations and 48 loads 34 loads
hiring (Rand

City of Tshwane Annual Report 2008/2009 //

value) Value: R51 880 Value 28 110
CHAPTER FIVE: Functional Statistics Analysis

Entrance fees and 5 612 770 8 133 297

hiring of facilities

pg 333
Recreation and
conservation

2009/06/04 09:33:11 AM
 Five-year

Annual Report v2.indd 334

Activities/ Target Actual Comments/ Cor-
KPA KPI programme Achieved 2006/07 Rating
Initiatives 2007/08 2007/08 rective Actions

pg 334
target

//
Sound human resource HRD Number of em- 312
management ployees trained
Labour relations Percentage of em- 50%
ployee grievances
finalised
Number of No targets are 4
employees disci- set – the goal
plined according is actually to
to the disciplinary through good
procedure management
practice reduce
disciplinary action

City of Tshwane Annual Report 2008/2009

over time
Performance Levels to which Level 2
management the Scorecards Level 3 in process
CHAPTER FIVE: Functional Statistics Analysis

have been cas-

caded
Employment The number of 49
Equity people from the
employment
equity target
groups employed
in the three
highest levels of
management in
compliance with
the Municipality’s
approved em-
ployment equity
plan, short term
employment, and
long term employ-
ment (NKPI)

2009/06/04 09:33:16 AM
Annual Report v2.indd 335
d) Project Progress

Adjustments R spent end

KPA PROJECT n/aME Project number Fund R start fin yr Ward
budget June 2008
Eradicate infrastructure backlogs Development of Parks (Backlog and New) 710348 1 4 500 000 3 830 201 Tshwane wide
Provide Infrastructure for Growth
Provide Infrastructure for Growth Purchase of Mechanical Stump Cutter 710352 1 500 000 421 230 All
Resorts Self Catering Chalets at Rietvlei Nature 710445 3 5 780 000 5 767 047 47
Reserve
New Swimming Pool Temba/Hammansk- 711578 1 2 300 000 2 183 665 74
raal
Upgrade Moretele Park Resort 711581 1 2 000 000 1 899 052 6
New Soshanguve Recreational Resort (Klip- 711582 1 3 000 000 3 000 000 37
kruisfontein Resort)
New Soshanguve Recreational Resort (Klip- 711582 5 2 500 000 2 349 217 37
kruisfontein Resort)
Open space development Landscaping of Traffic Islands and En- 712471 1 2 000 000 1 785 310 All
trances
Implement environmental health functions Eersterust Cemetery Upgrading: Office 711386 1 1 000 000 936 730 43,67,28,41
according to the National Health Act Block (Fencing and Roads)
Atmospheric Pollution Monitoring Network 711562 1 1 800 000 1710 000 Tshwane wide
(Include Dispersion Modelling and VOC

City of Tshwane Annual Report 2008/2009 //

and BTX and PM 1 Monitoring Network)
CHAPTER FIVE: Functional Statistics Analysis

Formulate and implement environmental Green Buildings Programme 712497 1 1 500 000 1 381 021 Tshwane wide
resource management, strategies, systems

pg 335
and projects to promote corporate environ-
mental compliance

2009/06/04 09:33:20 AM
 CHAPTER FIVE: Functional Statistics Analysis

5.4.5.8 Sport, Recreation, Arts and Culture

(a) Overview and description of key issues

Community Libraries and Information Services act as an agent for community development and
education by providing services to all people in Tshwane in their need for lifelong learning, cul-
tural expression and recreation. Services include:

• Information Provision
• Support to education
• Develop and maintenance of a reading culture
• Develop and maintain electronic network
• Present outreach and development programmes
• Develop and maintain existing facilities
• Develop new facilities in underdeveloped areas
• Ensure equal distribution of facilities, services and programmes

The Arts, Culture and Heritage Division is the custodian of arts, culture and heritage in
the City of Tshwane. The division’s key mandate is the promotion and development of
arts, culture and heritage by initiating, coordinating, organising and managing arts and
culture programmes, events and facilities. Culture is promoted by:

• The development of Arts, Culture and Heritage in the City of Tshwane areas.
• The cultural diversity of Tshwane.
• Ensuring access at cultural facilities by all communities of Tshwane.
• Providing the necessary culture infrastructure for the development of arts and culture.
• Upgrading of Museums
• Construction of the Suurman Community Hall
• Indigenous Dance and Music Development
• Classical Dance Development
• Visual Arts Development
• GEBRASA Cross Cultural Exchange Programme
• Cultural Heritage and Legacy Programme
• Museum Educational Assistants and Tour Guide Training Programme

The Sport Division strives to provide excellent sport and recreation facilities and services to all
people in Tshwane, to enhance their quality of life. Sport management entails:

• Effective maintenance of sport and recreation facilities in the City

• Develop sport and recreation related infrastructure in areas with the greatest need
• Upgrading of sport and recreation infrastructure in line with changing community needs

pg 336 // City of Tshwane Annual Report 2008/2009

Annual Report v2.indd 336 2009/06/04 09:33:23 AM

 CHAPTER FIVE: Functional Statistics Analysis

• Presentation of world class sport events

• Presentation of sport development programmes
• Partner with the Provincial Government to ensure the success of their Mass Participation
Programme
• Provide a sport and recreation related information service to the community at all service
points

(b) Analysis of the function

2006/07 2007/08
Nature and ex-
tent of facilities Number
Number of Number of R opera- Number R opera-
provided: of facili-
facilities: users tional cost of users tional cost
ties:

Library services 38 2 201 524 10 940 968 45

(2 not open pending 2,458,617 17,232,689

naming process)
Museums and art 3 museums and 1 32000 3 museums and 41 334 6 312 013

galleries art gallery 1 art gallery

Other community 6 culture facilities 120 000 users 6 culture halls 140 000 3 158 995

halls/facilities per year

- Sporting facilities 16 Multipurpose 14 892 bookings 16 Multipurpose

(specify) Courts per year Courts

28 Rugby Fields ± 28 925 book- 28 Rugby Fields 28 048 for the

30 Cricket Pitches ings per year 30 Cricket year

Pitches

31 Netball Courts 31 Netball

Courts

32 Basketball 32 Basketball

Courts Courts

313 Tennis Courts 313 Tennis

Courts

88 Soccer Fields 88 Soccer Fields

117 Scraped 117 Scraped

Fields Fields

40 Bowling 40 Bowling

Greens Greens

20 Korfball Courts 20 Korfball

Courts

11 Athletics Tracks 11 Athletics

Tracks

1 Hall for 1 Hall for

Disabled Disabled

1 Tug of War Field 1 Tug of War

Field

16 Squash Courts 16 Squash

Courts

15 Softball 15 Softball

Diamonds Diamonds

8 Hockey Fields 8 Hockey Fields

City of Tshwane Annual Report 2008/2009 // pg 337

Annual Report v2.indd 337 2009/06/04 09:33:27 AM

 CHAPTER FIVE: Functional Statistics Analysis

2006/07 2007/08
Nature and ex-
tent of facilities Number
Number of Number of R opera- Number R opera-
provided: of facili-
facilities: users tional cost of users tional cost
ties:
2 Pigeon Clubs 2 Pigeon Clubs

1 Wrestling Club 1 Wrestling Club

1 Gymnastics 1 Gymnastics

Club Club

38 Jukskei Pits 38 Jukskei Pits

2 Golf Courses 2 Golf Courses

2 Pitch ‘n Putt 2 Pitch ‘n Putt

1 Radio Yacht 1 Radio Yacht

Club Club

2 Driving Ranges 2 Driving Ranges

(Golf)

3 Runners Clubs 3 Runners Clubs

5 Sport Centres 5 Sport Centres

Total Sport 300 306

Facilities
Number and cost Number of R(000s) Number of R(000s)

to employer of personnel personnel

all personnel as-

sociated with each
community services
function:
Library services 193 32 800 000 195 2,458,617 33,400,675

(visitors)

Museums and art 21 5 700 000 04 39 000 5 564 144

galleries
Other community 29 2 720 000 07 140 000 3 158 995

halls/facilities
Sporting facilities 95 28 925 bookings 14 900 000 28 048 book-

ings

pg 338 // City of Tshwane Annual Report 2008/2009

Annual Report v2.indd 338 2009/06/04 09:33:32 AM

Annual Report v2.indd 339
(c) Key Performance Areas

Initiatives/ Ac- 5 year pro- 2006/07 2007/08 Comments/Cor-

KPA KPI 2007/08 target Rating
tivities/Projects gramme target achievement achievement rective Action

Manage arts, Manage heritage Number of muse- 3 3 3 3 Target achieved

culture and heritage sites ums/heritage sites Upgrading of muse- Upgrading of muse-
facilities and pro- managed ums - implementing ums - upgrading of
grammes of Audio guides Fort Klapperkop
Melrose House
Number of visitors 175,000 35,000 35,000 37,775 Target achieved
per museum/heri-
tage site
Manage art galleries Number of art 1 1 1 1 Target achieved
galleries
Number of visitors 20 000 4 000 4 000 3559
per art gallery
Implement arts, Number of arts, 5 per annum 5 5 5 Target achieved
culture and heritage culture and heritage - Antique and Crafts - Antique and Crafts
programmes programmes imple- fairs 16 Dec and fairs 16 Dec and
mented 1 May 1 May
- International - International
Museum Day May Museum Day May
2007 2008
- Olievenhout- - Youth Cultural
bosch Visual Arts Dance Showcase
programme June 2008

City of Tshwane Annual Report 2008/2009 //

- Contemporary - Education As-
CHAPTER FIVE: Functional Statistics Analysis

Dance programme sistants Develop-

- Indigenous clas- ment programme

pg 339
sical African drum- 2007/08
ming programme

2009/06/04 09:33:37 AM
 Initiatives/ Ac- 5 year pro- 2006/07 2007/08 Comments/Cor-
KPA KPI 2007/08 target Rating

Annual Report v2.indd 340

tivities/Projects gramme target achievement achievement rective Action

pg 340
Provide library Number of library By 2011 there 1/50000 1/48000 1/46,189 Once the librar-

//
services to the com- facilities per popula- should be 1 library ies are open at
munity tion per area per 42000 people Ga Rankuwa and
per area Nellmapius result is
1/44,132
Total number of 46 38 45 45 Libraries handed
libraries/service over to City of
points Tshwane though not
open for community
Number of profes- 1.8 1.51 1.76 1,63 Pending resignations
sionally qualified li-
brarians per 50000
capita

City of Tshwane Annual Report 2008/2009

Number of library 3,500,000 1,314,178 2,500,000 2,458,617 Depending on
visitors services offered at
libraries
CHAPTER FIVE: Functional Statistics Analysis

Number of edu- 2,000,000 1,271,007 1,800,000 1,688,078 Depending on no

cational enquiries of users
dealt with
Number of library 1,600,000 per 1,485,603 per 1,500,000/ 2, 227, 1,215,581/ 2, 345, Depending how
books population population 284 = 0.673 books 908 = 0,518 books many material
per capita per capita per capita discarded and how
much new stock
acquired
Promote competitive Provide at least 1 Number of sports 1/7100 1/7300 1/7100 1/7250 The ever increasing
sport sports facility per facilities provided migration to the city
7100 population by per number of
2011 population
Total number of 310 300 307 306 307
sports facilities
Present at least Number of sports 12 12 12 13 Target achieved
12 annual sports development pro-
development pro- grammes
grammes

2009/06/04 09:33:41 AM
 Initiatives/ Ac- 5 year pro- 2006/07 2007/08 Comments/Cor-
KPA KPI 2007/08 target Rating

Annual Report v2.indd 341

tivities/Projects gramme target achievement achievement rective Action

Hold at least 2 Number of world 2 2 2 10 Target achieved

events per annum class sports events
co-hosted per an-
num
Facilitate community Number of com- Sport and Recr: 17 16 17 17 Target achieved
access to halls munity halls
Culture: 7 5 5 5 Target achieved
Construction of
Temba Community
Hall
Construction of
Suurman Commu-
nity Hall
Number of functions Sport and Recr: 20115 25690 28048 Target achieved
per community hall 29 450
(bookings)
Culture: 6 100 over 1 000 1 000 1 586 Target achieved
5 yr target
Batho Pele Implement standard Number of service All facilities 300 359 359 Target achieved
Batho Pele com- points with Batho
plaint operating Pele operating
procedures at all procedures
customer contact
points and service
desks
Human resource Manage employee Percentage of em- 100% 100% 100% 100% Target achieved
management grievances ployee grievances
finalised
Manage employee Number of em- No data available No data available No data available No data available
discipline ployees disciplined

City of Tshwane Annual Report 2008/2009 //

according to the dis-
ciplinary procedure
CHAPTER FIVE: Functional Statistics Analysis

Cascade scorecards Levels to which the Level 5 Level 3 Level 3 Level 3

pg 341
down to all organi- scorecards have
sational levels been cascaded

2009/06/04 09:33:46 AM
 d.) Project Progress

Annual Report v2.indd 342

pg 342
Adjustments R spent End

//
KPA PROJECT n/aME Project No Fund Budget Ward Progress with Target
Budget June 2008

Provide library Upgrading Temba Community 710103 1 No data available No data available No data available 75 No data available
services to the com- Library
munity Ga-Rankuwa Library 712265 1 6,000,000 Same 5,897,802 32 Project completed successfully
Facilitate community Nellmapius Community Centre 710700 5 3,000,000 Same 151,539 40 Contract could not be implemented due to
access to halls unforeseen circumstances
Promote competitive Atteridgeville Superstadium 710713 1 6,000,000 5,700,000 5,665,095 62 Project phase completed
sport Atteridgeville Superstadium 710713 5 14,000,000 13,985,594 62 Project phase completed successfully
H/Skraal Multip. Sport and 711433 1 2,000,000 1,900,000 1,891,733 73 Project phase completed successfully
Recreation Centre

City of Tshwane Annual Report 2008/2009

H/Skraal Multip. Sport and 711433 5 No data available No data available No data available 73 No data available
Recreation Centre
Mabopane Golf Development 712606 3 3,000,000 No data available No data available 22 Project moved to 2008/09 fin year
CHAPTER FIVE: Functional Statistics Analysis

Facility
Upgrading of the Soshanguve 710690 1 33,062,000 31,108,000 31,028,916 33 Project phase completed successfully
Giant Stadium
Upgrading of the Soshanguve 710690 5 7,000,000 Same 6,994,149 33 Project phase completed successfully
Giant Stadium
Completion of Temba Stadium 710691 3 1,500,000 Same 1,447,778 75 Project phase completed successfully
Completion of Temba Stadium 710691 1 No data available No data available No data available 1 No data available
Saulsville Arena 710689 1 No data available No data available No data available 63 No data available
Manage arts, Upgrading of Museums 711442 3 300,000 No data available No data available 1 Project withdrawn from Gauteng SRAC
culture and heritage Solomon Mahlangu Freedom 711439 1 No data available No data available No data available 38 No data available
facilities and pro- Square - Cultural Centre
grammes
Hammanskraal Cultural Centre 712397 1 No data available No data available No data available 73 No data available
West End Facility for the Dis- 712549 3 490,000 Same 484,823 1 Project completed successfully
abled
73,998,900 67,567,429 91% of capital budget

2009/06/04 09:33:50 AM
 CHAPTER FIVE: Functional Statistics Analysis

5.4.5.9 Social Development

(a) Overview and description of key issues

Integrated community development entails:

• The implementation of the indigent policy and the maintenance of the indigent programme
and the exit programme for the indigent;
• Early Childhood Development, which is one of the World Health Organisation’s first priority
programmes in the world for children aged 0 to nine years. Currently the funding and staff
enables us to concentrate on the 0 to 5 age group. Because of a lack of capacity, pro-
grammes for those aged 6 to nine years are not yet fully operational. We need to promote
partnerships with community-based organisations (CBOs) and non-governmental organisa-
tions (NGOs) to address the needs of the following:
o Children in crisis
o Child-headed families
o Support to caregivers
o Special programmes for traumatised children;
• The implementation of programmes meant to ensure the mainstream inclusion into society
of the youth, women and people living with disabilities and the elderly, with the express pur-
pose of decreasing their vulnerability. Multi-sectoral collaboration is needed, championed
by ICD. These efforts will have an impact on crime prevention, joblessness, social isolation
and psychosomatic diseases;
• Empowerment and capacity-building of NGOs and faith-based organisations (FBOs) to
ensure effective and efficient service delivery at grass roots level; and
• Social research to guide and inform development initiatives which are geared towards pov-
erty alleviation and improving the lives of people.
• Development of policies/ strategies for targeted groups

(b) Analysis of the function

2006/07 2007/08
Nature and extent of facilities provided:
No R No R
Child care (including crèches etc) 10 18 mil 10 22 mil
Aged care (including aged homes, home help) 1 30 000 1 50 000
Number and cost to employer of all personnel associated 108 19 million 110 25 mil
with each community services function:
Child care (including crèches etc) 60 13.8 Million 80 8 mil
- Aged care (including aged homes, home help) 0 10 1 million
Total operating cost of community and social services 23 million 39 million
function

City of Tshwane Annual Report 2008/2009 // pg 343

Annual Report v2.indd 343 2009/06/04 09:33:54 AM

 c) Key Performance Areas

Annual Report v2.indd 344

Explanation of
Key Performance Achieved 2007/08

pg 344
KPI Achieved 2005/6 2007/08 Target Rating variance/Correc-
Area (KPA) 2006/07 Achieved
tive Actions

//
Implement at least 1 Number of essential 1 6 8 38 Exceed target as AIDS/
community skills devel- skills development HIV training was not
opment initiative per initiatives implemented incorporated in the
community per annum in communities in target
partnership with key
role-players such as the
SETA’s, and in line with
sector skills plans.
Maintenance of an Number of indigents 2 000 46 800 52 000 47 774 17 271 indigents are
Indigents database (households) on the captured and verified
indigent register by the service provider
appointed, but the data

City of Tshwane Annual Report 2008/2009

is not captured on the
treasury register. The
service provider have
CHAPTER FIVE: Functional Statistics Analysis

to capture and verify

90000 indigents but
only did 17271
Number of indigent Not applicable 100% of forms 100% of forms 17 100
households evaluated received from finance received from finance
evaluated evaluated
Number of indigent Not applicable 114 150 1 240 1100 indigents submit-
households linked to ted to Electricity for
exit programmes automated meter read-
ing project
Number of beneficia- 156 000 143 322
ries to municipal sup-
port grant (Beneficia-
ries are all members of
the indigent household
on the grant)

2009/06/04 09:33:59 AM
Annual Report v2.indd 345
Explanation of
Key Performance Achieved 2007/08
KPI Achieved 2005/6 2007/08 Target Rating variance/Correc-
Area (KPA) 2006/07 Achieved
tive Actions
Decrease the vulner- Number of projects 4 6 5 50 Target achieved
ability of targeted implemented for the
groups at risk through youth
mainstreamed pro-
grammes for children,
youth, women, dis-
abled and elderly
Number of projects 3 4 4 60 Target achieved
implemented for
women
Number of projects 2 3 3 45 Target achieved
implemented for the
disabled
Number of projects 4 4 5 60 Target achieved
implemented for the
elderly
Number of projects Not applicable 1 1 0 The Homeless forum
implemented for the disbanded
homeless
Number of projects 3 7 4 30 Target achieved
implemented for
children
Number of initiatives Not applicable 15 20 245
implemented that ben-

City of Tshwane Annual Report 2008/2009 //

efit vulnerable groups
CHAPTER FIVE: Functional Statistics Analysis

% increase in the Not applicable 0% 5% 8%. R9 million were give to

expenditure on pro- NGO crèches for ben-

pg 345
grammes that benefit efit of poor children
vulnerable groups

2009/06/04 09:34:03 AM
 Explanation of
Key Performance Achieved 2007/08
KPI Achieved 2005/6 2007/08 Target Rating variance/Correc-

Annual Report v2.indd 346

Area (KPA) 2006/07 Achieved
tive Actions

pg 346
Provide affordable Number of child care 10 10 10 Target achieved

//
edu-care (pre-school facilities managed by
facilities) the City of Tshwane
Number of children per 150 in 9 centres and Average of 120 chil- The number of children
child care facility 60 in the small facility dren in 9 big facilities are growing in the
and 58 for the smallest crèches as In Sept 7
facility the average were 76
children per big facility,
and 54 in the small
facility
Number of children Minimum=25:1 and Average of 29:1 The number grew from
cared for per staff maximum=30:1 20 to 29 children per
member teacher in nine months

City of Tshwane Annual Report 2008/2009

Number of standards To be developed and Standard to be devel- Still busy with consulta-
for pre-school facilities implemented oped tion process
implemented
CHAPTER FIVE: Functional Statistics Analysis

d) Project Progress

R spent
Adjust-
Project at the
KPA PROJECT n/aME Fund Budget ments Ward
number end June
budget
2008
Initiatives that benefit vulnerable groups Community Empowerment Centres: Tunnels/Equip. 71 0316 5 1 700 000 1 700 000 1 698 626 17

2009/06/04 09:34:07 AM
 CHAPTER FIVE: Functional Statistics Analysis

5.4.6 Housing

a) Overview

The newly formed Housing and Sustainable Development Department was established by July
2007 as a result of the implementation of the Alternative Service Delivery Programme. The
Department previously formed part of the Housing, City planning and Environmental Manage-
ment Department where it featured as a Division. The Housing and Sustainable Development
Department comprises two Divisions viz Housing Provision and Resource Management as well
as Housing Administration. Housing is responsible for the provisioning of adequate housing op-
portunities for all residents of the City of Tshwane and performs the following functions:

• Rental housing administration

• Hostel redevelopment
• Sales, transfers and beneficiary administration
• Informal settlement and land invasion management
• Institutional housing facilitation
• Community participatory management
• Consumer education
• Demand database administration
• Housing provision project management

These functions include the role of “developer”, but not the management of the entire subsidised
housing programme for Tshwane which currently falls within the jurisdiction of provincial gov-
ernment. The Municipality has a mandate to fulfil the role of a developer and to implement all
provincially approved subsidised housing projects.

Furthermore, in striving towards the development of sustainable human settlements the Housing
and Sustainable Development Department realised that urban cores must be developed as cen-
tres for the clustering of social facilities to provide services to surrounding communities. This led
to the approval of the Housing Densification Strategy during the year under review. Densification
in the housing provision strategy includes the reduction of urban sprawl, reduction of expenditure
on bulk and link services, the densification and integration of the City, improvement of the socio-
economic situation of the poor, optimising the use of available land, and the improved usage of
public transport services. This implies that the following strategy is to be followed:

• High density housing in the inner city, within a 5 km radius, with high levels of services to be
provided;
• Medium density housing around the inner city, within a 20 km radius, with high levels of
services to be provided to all units; and,
• Low density on the periphery of the city, within a 20 km radius, with high levels of services for
private development and intermediate levels of services otherwise.

City of Tshwane Annual Report 2008/2009 // pg 347

Annual Report v2.indd 347 2009/06/04 09:34:12 AM

 CHAPTER FIVE: Functional Statistics Analysis

b) Description of key issues

The following were the key issues for the 2007/08 financial year:

• Provide on-line information on National Home Builders Registration Council (NHBRC) re-
quirements, the landlord and tenant tribunal process and the housing subsidy
• Run a consumer education programme
• Provide housing opportunities for the low income families of Tshwane including affordable
rental accommodation (hostel redevelopment)
• Land identification and acquisition
• Set up labour base construction projects to create employment opportunities for the unem-
ployed within the City of Tshwane (about 100 jobs)
• Provide a shelter for the homeless
• Appoint security companies to ensure that no land and/or building invasion takes place
• Promote staff development
• Financial management
• Implementation of Informal Settlement Management Plan. This has been regarded as a
benchmark for Gauteng Province.
• Provide clean water through water tankers and JoJo tankers to informal settlement com-
munities
• Provide chemical toilets at informal settlements.
• A demand database was introduced in collaboration with Gauteng Province from 1 June
2 008 and will run through to 31 July 2008 to update all information of applicants. This
database will then become the responsibility of the Department.
• Twenty prioritised township programmes in Mamelodi, Atteridgeville and Soshanguve.
• Accreditation business plan was finalised.

c) Analysis of the Function

2005/06 2006/07 2007/08

Description
Total R Total R Total R
Number and cost of all 280 41 548 861 320 58 178 195
personnel associated with
the provision of municipal
housing:

- Senior managerial (general 7 4 550 000 5 3 058 859 3 3 127 630

manager, managers)

- Managerial (deputy 6 2 760 600 7 3 410 689 6 3 020 950

managers, chiefs, assistant
managers)

- Professional (architects, 47 15 560 500 15 4 862 095 14 5 703 544

consultants, project manag-
ers, etc)

- Office (clerical, administra- 97 16 610 000 110 21 538 609 129 27 405 866
tion, secretarial, etc)

pg 348 // City of Tshwane Annual Report 2008/2009

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 CHAPTER FIVE: Functional Statistics Analysis

2005/06 2006/07 2007/08

Description
Total R Total R Total R
- Non-professional (drivers, 9 963 000 143 6 678 609 9 2 328 761
workshop assistants, etc)

- Workers 108 6 400 000 113 8 245 550 123 14 501 500

- Temporary Not available Not available 36 1 326 000 36 2 089 944

- Contract 36 1 300 000 Not available Not available Not available Not available

Number and total value of housing projects planned:

- The 2007/08 financial

year

Serviced stands 12 000 157 656 000 12000 168 000 000 12 000 191 904 000

Top-structures 6 000 112 752 000 6000 112 800 000 6 152 184 363 136

Serviced stands (complete 150 052 2 255 131 508 150 052 2 255 131 508 58 460 794 950 368
by 2010)

Top-structures (complete 160 052 3 440 957 948 160 052 3 440 957 948 26 899 888 373 136
by 2010)

Total of type, number and value of housing provided (2007/08):

- Residential stands serviced 20 473 527 555 706 Water 156,609,579 Water Water 35 978 806
19 256 12 000
Sewer
Sewer Sewer 12 28 359 221
19 376 006

- Low-cost housing top- 5 949 119 312 240 PRTs = 1,725 133,162,615 PRTs =5 810 125 175 979
structures
City of Tshwane City of
= 5,884 Tshwane
7,609 6 152
11 962

- Hostels redeveloped (ie 320 48 000 000 360 35 629 314 0 completed 21 645 142
number of family units – still under
developed) construction

- Rental units available (no 2 312 Not available 2312 Not available 2312 Not available
new units developed)

- Rental units in Schubart 1 134 Not available 1134 Not available 1134 Not available
Park and Kruger Park

- Institutional housing units Planning and - Planning and 2705 units Units still in plan-
Planning Process (Private design design Townlands = ning phase – await-
funds) HCT = 767 units HCT = 767 767 ing funding
Yeast = 460 units Absa
units Yeast = 460 Olieven-
units houtbosch =
1263
Yeast = 675

Total number and value of A total of 5 452 921 A total of 5 919 478 49,5% Accumulative
rental received from Munici- 53.85% was 53.98% was income:
pality-owned rental units received from received from R6 057 479
all units (flats, all units (flats, Projected Income:
houses, etc)- houses, etc – R12 218 197,00
2312 units)

Estimated backlog in number Not available Not available Not available Not available Not available
of housing units (and cost to
build them):

From aerial photographs 160 052 5 846 379 500 133 811 4 873 530 431 133 811 6 021 495 000
taken during February 2005
and counted in March 2005
(number of families)

Type of habitat breakdown Not available Not available Not available

(estimates):

City of Tshwane Annual Report 2008/2009 // pg 349

Annual Report v2.indd 349 2009/06/04 09:34:21 AM

 CHAPTER FIVE: Functional Statistics Analysis

2005/06 2006/07 2007/08

Description
Total R Total R Total R
- Number of people living in 5 Not available 5 Not available Not available Not available
a house or brick structure

- Number of people living in 5 Not available 5 Not available Not available Not available
a traditional dwelling

- Number of people living in 5 Not available 5 Not available Not available Not available
a flat in a block of flats

- Number of people living 5 Not available 5 Not available Not available Not available
in a town, cluster or semi-
detached group dwelling

- Number of people living 5 Not available 5 Not available Not available Not available
in an informal dwelling or
shack

-Number of people living

in a

room or flat let 3 Not available 3 Not available Not available Not available

Type and number of grants Services and Top 166,966,327.11 Top Structures 71,475,510,00 Services and Gauteng
and subsidies received: structures 21,284,358,00 Services 85,129,903.21 Top structures Services
MIG 188,250,685.11 156,605,413.21 MIG R21 172 616.76
Houses
R102 801 928,00
MIG
R1 855 333,00
North West
Houses
R49 385 832.72
Total
R175 215 710.40

- Hostel redevelopment (July 226 R48 000 000 360 Saulsville Hostels 240 Saulsville Hostels
2007 to June 2008) received 8,835,000 0,00
Mamelodi Hostels Mamelodi Hostels
3,336,802 0,00

- Gauteng Provincial Services Services 0 0

Government (subsidies R 55 863 201 R246 066 677
allocated directly to a Houses Houses
regional professional team R 155 625 386 R104 977 398
ie not provided for on City of Hostels
Tshwane budget) R16 960 000
Total Total
R 211 488 587 R368 004 075

Total operating cost of - 426 112 979 - R130 636 568 - R252 444 599.48
housing function (total (Excluding top-
from medium term budget structures)
2007/08)

pg 350 // City of Tshwane Annual Report 2008/2009

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Annual Report v2.indd 351
d) Key Performance Areas

Five-year pro- Achieved Corrective Ac-

KPA Activities/ Initiatives KPI Target 2007/08 Actual 2007/08 Rating
gramme target 2006/07 tions

Eradication/ reduce Provide in the demand Number of stands provided 58 000 19 256 12 000 12 000 Target achieved
of infrastructure for access to intermediate with water connections
backlogs or higher levels of water
services in formalised
(proclaimed) areas
Provide sewer connec- Number of residential 60 000 19 376 12 000 12 006 Target achieved
tions to formalise informal stands provided with sewer
settlements connection
Percentage of households No data available 100% 100% 100% This KPA was well
in informal settlements pro- performed with lim-
vided with chemical toilets ited funds; additional
and pit latrines provided by funds were requested
residents and provided.
Providing top structures Number of top structures 6000 top structures 7609 6 000 6 152 Target exceeded
provided per annum in addi-
tion to the Gauteng

12 000 top struc-

tures pa
Develop family units at Number of completed fam- at least 240 family 360 240 0 completed – still Target not achieved.
hostels ily units at hostels units per annum under construction
Additional projects
identified with fund-

City of Tshwane Annual Report 2008/2009 //

ing Planning
CHAPTER FIVE: Functional Statistics Analysis

were done for the

2008-2009 financial

pg 351
year to start the pro-
cess. commitment

2009/06/04 09:34:30 AM
 Five-year pro- Achieved Corrective Ac-
KPA Activities/ Initiatives KPI Target 2007/08 Actual 2007/08 Rating

Annual Report v2.indd 352

gramme target 2006/07 tions

pg 352
Establish informal settle- Percentage of settlements Establishing town- 12 of 65 settle- 25% of 42 remain- 0% - only 1 town- Departmental risk

//
ments as townships established as townships/ ships from informal ments that can be ing informal settle- ship approved Power of Attorney
land development applica- settlements at a rate established were ments = 10 on signatory not
tion of 10% pa. established approved and this
caused the delay on
establishment
Provide infrastruc- Provide in the demand for Percentage of informal 100% 100% 80% 100% Monitoring and
ture for growth access to water services settlements (unproclaimed inspections was done
in informal settlements areas) receiving water by continuously. This
(unproclaimed areas) mobile tankers, Jojo water function was well
tanks and/or standpipes performed with limited
funds.
Provide roads to manage Number of residential 6 000 per annum 12 450 6 000 7 162 Target exceeded

City of Tshwane Annual Report 2008/2009

the growth in the city stands provided with roads (30 km) (44.76 KM)
and stormwater drainage
Provide for the Rental administration Number of rental units 2 410 No data available 2 410 2 410 CRU programme only
CHAPTER FIVE: Functional Statistics Analysis

demand/growth in provided as a proportion of operational from the

housing services total number of rental units last part 2007. With
in formalised (pro- demanded (ie as a propor- these funds we might
claimed) areas tion of the waiting list) be able to build or
refurbish current units.
Housing infrastruc- Repairs and Maintenance Cost of repairs and main- Target < 30% of No data available R 20 137 623 Accumulative Credit control still not
ture maintenance of Rental Units tenance as a percentage of TOI per annum projected income income effective. Only an aver-
the total operating income (including selling of R6 057 479 age of 50% of money
for housing services rental scheme units) due is realised
Accumulative
Budgeted mainte- Expenditure A service level agree-
nance R6 990 507 ment must be signed
R3 114 309 with the Finance Depart-
Projected Income ment to address this
R12 218 197 problem.

Preventative measures
must be put in place;
tenants must only be
allocated units that they
can afford.

2009/06/04 09:34:35 AM
Annual Report v2.indd 353
Five-year pro- Achieved Corrective Ac-
KPA Activities/ Initiatives KPI Target 2007/08 Actual 2007/08 Rating
gramme target 2006/07 tions

Increase participa- Support and develop Number of cooperativeco- 2 No data available No data available No data available Community not
tion and broaden SMMEs and cooperative- operatives supported ready for the concept
the contribution in cooperatives of cooperativecoop-
growing the city’s eratives. They want
economy through individual ownership.
the development of
SMMEs, coopera- Alternative Coop-
tivecooperatives, the erativeCooperatives
informal sector and must be investigated;
the role of black maintenance co-op’s
people, women and or cleaning co-op’s
youth
Develop viable Intercept the cycle of Number of community 24 000 No data available 4800 5212 Target achieved
communities poverty by investing members trained through
in a Human Resource City of Tshwane facilitation
Development programme processes
that optimizes the well-
ness and potential of
our people from birth
throughout life
Ensure the safety Influx control 26 982 Shacks 29 302 shacks to Shack marking The xenophobia
of our communi- marked be marked and =11178 cases hamper reg-
ties, businesses registered istration and shack
and roads through 12 059 Registration = 7 463 marking. Availability
fostering a culture of Shacks registered of houses/ serviced
respect for the rights Relocation = 6 208 stands/approval and
of all, the laws that 13 339 funds
govern us all and Data captured
a high moral and Buildings and facilities’ Number of rental facilities 100% Rental units = 2410 Rental units = 2410 Rental units = 2410 Target achieved

City of Tshwane Annual Report 2008/2009 //

ethical standard management managed by the Housing Hostels (family units
CHAPTER FIVE: Functional Statistics Analysis

department compliant with Hostels (family units Hostels (family units and single beds) =
building regulations as a and single beds) = and single beds) = 23487

pg 353
proportion of total rental 23487 23487
facilities managed

2009/06/04 09:34:39 AM
 Five-year pro- Achieved Corrective Ac-
KPA Activities/ Initiatives KPI Target 2007/08 Actual 2007/08 Rating

Annual Report v2.indd 354

gramme target 2006/07 tions

pg 354
Entrench a customer Manage and respond to Number of customer com- No data available No data available <18 100

//
focused approach customer complaints plaints received
to citizenry and
business by setting
standards that we
achieve guided
by the Batho Pele
principles
Prudent Financial Expenditure management % Opex spent 95% No data available 95% 102% Target exceeded
management % Capex spent 98% No data available 98% 79% Enhance project
management capac-
ity
Sound human Train employees accord- Number of employees 280 5% 84 = 30% 194 = 70% Target exceeded

City of Tshwane Annual Report 2008/2009

resource manage- ing to the departmental trained
ment skills development plan
Percentage of operating 0
CHAPTER FIVE: Functional Statistics Analysis

budget spent on imple-

menting the workplace
skills plan
Performance manage- Percentage of employee No data available No data available No target set – 4 cases
ment grievances finalised Manage as neces- 2 finalised
sary 2 in process
Number of employees No data available No data available No target set – No data available Not applicable as no
disciplined according to the Manage as neces- data is available
disciplinary procedure sary
Levels to which the score- No data available No data available New level 5 New level 5 Target achieved
cards have been cascaded

2009/06/04 09:34:44 AM
Annual Report v2.indd 355
Five-year pro- Achieved Corrective Ac-
KPA Activities/ Initiatives KPI Target 2007/08 Actual 2007/08 Rating
gramme target 2006/07 tions

Employment equity The number of people from No data available No data available No data available 2 1 x black female
the employment equity appointed as SED
target groups employed in and 1 x black male
the three highest levels of appointed as ED
management in compli-
ance with the Municipal-
ity’s approved employment
equity plan, short term
employment, and long
term employment. (NKPI)
Percentage of newly ap- 22,5% 12 All appointments
pointed employees from EE were from EE desig-
target groups nated group
Number of EE forum meet- No data available No data available 4 meetings No data available The Corporate
ings held Employment Equity
Forum has been sus-
pended pending the
migration and place-
ment of employees
in their respective
departments follow-
ing the collective
agreement.

City of Tshwane Annual Report 2008/2009 //

CHAPTER FIVE: Functional Statistics Analysis

pg 355

2009/06/04 09:34:48 AM
 (e) Progress with project implementation

Annual Report v2.indd 356

R at start of Adjustments R spent end

pg 356
KPA Project Name Project number Fund Ward Comments/corrective action
financial year budget June 2008

//
Respond and Acquisition: Fire- 710564 1 10 000 000 9 500 000 9 420 624 assigned Tshwane wide The following vehicles were purchased:
manage danger- fighting vehicles as at 30/06/08 2 x skid units
ous incidents (fire, 1 x dry chemical powder unit
life-threatening 2 x engine companies
emergencies and 1 x Hazmat unit
disasters)
These are all replacements for vehicles
nearing the end of their lifespan (exceed-
ing 15 years). The advantages are lower
maintenance costs and reduction in down-
time which has an overall positive effect on
service delivery.

City of Tshwane Annual Report 2008/2009

Two skid units and one DCP unit were de-
livered in January 2008. One prime mover
CHAPTER FIVE: Functional Statistics Analysis

and one LDV delivery vehicle was delivered

in May 2008. Two engine companies were
delivered at the end June 2008.
ReRespond and Refurbishment of 711454 1 1 000 000 950 000 864 159 assigned Tshwane wide Two vehicles (Fleet No 23/001 and
manage danger- fire-fighting vehicles as at 30/06/08 23/041) were refurbished and delivered.
ous incidents (fire,
life-threatening
emergencies and
disasters)
En Ensure the safety Upgrading Drivers 712552 1 1 000 000 950 000 810 310 48, 57, 61, 66, Quotations were lesser than the planned
of our communities, Licensing Testing 69, 70 budget. Some of the funds were saved for
business and roads, Centres (DLTC) in tax rebate.
fostering a culture of Centurion
respect for the rights
of all, the laws that
govern us all and
a high moral and
ethical standard

2009/06/04 09:34:52 AM
Annual Report v2.indd 357
R at start of Adjustments R spent end
KPA Project Name Project number Fund Ward Comments/corrective action
financial year budget June 2008
Decrease the crime Establishment of 712022 1 7 000 000 6 650 000 636 815 Ward 9, 11, 12, The dispute in land ownership delayed the
levels working with Metro Police Offices (-350 000) 14, 19, 20, 21, expenditure of funds. R6,000,000 was
the National Crimi- for Region 1 22, 24, 25, 26, transferred to Project 712348 (upgrading
nal Justice System, 27, 29, 33, 34, of control room). Only R650, 000 was
the South African 35, 36 spent on Project 712022.
Police Services,
business and com-
munities, ensuring
visible policing and
strengthening the
municipal court
system
Decrease the crime The establishment of 712345 1 4 000 000 3 800 000 3 490 429 Tshwane wide R1, 225,000 was spent on CCTV infra-
levels working with network infrastruc- (-200 000) structure. The remaining funds were for tax
the National Crimi- ture (IT and CCTV) rebate.
nal Justice System,
the South African
Police Services,
business and com-
munities, ensuring
visible policing and
strengthening the
municipal court
system

City of Tshwane Annual Report 2008/2009 //

CHAPTER FIVE: Functional Statistics Analysis

pg 357

2009/06/04 09:34:56 AM
 R at start of Adjustments R spent end
KPA Project Name Project number Fund Ward Comments/corrective action

Annual Report v2.indd 358

financial year budget June 2008

pg 358
Decrease the crime Purchasing of 711524 1 3 000 000 1 150 000 976 989 Tshwane wide The remaining funds were planned for the

//
levels working with cameras and other (-1 850 000) purchasing of 2 hand-held machines but
the National Crimi- relevant equip- it was decided that additional cameras
nal Justice System, ment for speed law should be bought because the old hand-
the South African enforcement held machine was scrapped. No tender
Police Services, was in place and the funds were not suf-
business and com- ficient to purchase additional cameras.
munities, ensuring
visible policing and
strengthening the
municipal court
system
Ensure the safety of Development/ 712347 1 6 000 000 6 400 000 989 648 Tshwane wide Construction of the Centurion Weigh
our communities, Construction of (+400,000) Bridge was completed in March 2008.

City of Tshwane Annual Report 2008/2009

business and roads, Tshwane Overload The EIA took six months for approval from
fostering a culture of Control Programme GDACE for the construction of the Akasia
respect for the rights infrastructure Weigh Bridge, resulting in a delay of
CHAPTER FIVE: Functional Statistics Analysis

of all, the laws that expenditure.

govern us all and
a high moral and
ethical standard

2009/06/04 09:34:59 AM
Annual Report v2.indd 359
R at start of Adjustments R spent end
KPA Project Name Project number Fund Ward Comments/corrective action
financial year budget June 2008
DeDecrease the Upgrading of the 712348 1 4 000 000 4 800 000 3 900 457 Tshwane wide A report was submitted to the procurement
crime levels working Metro Police Control (+800 000) committee to use the City of Cape Town
with the National Room/Ops Room/ tender document for the purchasing of the
Criminal Justice CCTV Control Room Tetra Communication System. Approval
System, the South (Phase 1) thereof was not received from the City
African Police Ser- Manager. A WBS (Work Breakdown Struc-
vices, business and ture) was created for the purchasing of a
communities, ensur- command vehicle for event management
ing visible policing but the tender was not approved.
and strengthening
the municipal court
system
FF Facility manage- Renovation and up- 711455 1 1 000 000 950 000 945 764 assigned Tshwane wide The following projects were completed:
ment grading of facilities as at 30/06/08
Non-slip flooring (approximately R200
000)

Bay doors (approximately R380 000)

The remainder of the funds was used for

other smaller renovations to various fire-
stations in Tshwane.

City of Tshwane Annual Report 2008/2009 //

CHAPTER FIVE: Functional Statistics Analysis

pg 359

2009/06/04 09:35:03 AM
 CHAPTER FIVE: Functional Statistics Analysis

5.4.7 Waste management

(a) Overview and description of key issues

As a result of alternative service delivery (ASD), Waste Management became a Division, aiming
at ensuring that waste functioning was made more efficient and responsive to the needs of the
residents. Waste Management forms part of the Agriculture and Environmental Management
Department.

Waste Management’s mission and key performance areas are the collection, transport, treatment
and disposal of waste in an environmentally friendly and economical way and educating present
and future generations of Tshwane about waste management through city cleansing, inner-city
cleansing, refuse removal (domestic collection service), community-based contracts, inspectorate
services, bulk services and fleet management, landfill management, clearing of vacant stands
(illegal dumping), management and maintenance of infrastructure, and the collection, transpor-
tation and disposal of garden and domestic refuse.

(b) Analysis of the function

2005/06 2006/07 2007/08

Details
Total R Total R Total R
Number of staff associated with refuse removal and their cost to the Municipality: No data available

Professional (engi-
neers,
consultants) No data available No data available

Fieldworkers (supervi- 66 4 620 000 66 4 827 622 No data available No data available

sors/foremen)
Office workers (cleri- 66 6 600 000 65 6 907 622 No data available No data available

cal/administration)
Non-professional 465 13 031 208 457 12 678 830 No data available No data available

workers (blue collar,

outside workforce)
- Temporary workers - No data available No data available

- Contract workers 1 206 50 524 341 1206 51 534 828 No data available No data available

Number of households receiving regular refuse removal services, and frequency and cost of service: No data available

-Removed by the Mu- 721 790 153 76 243 731 552 8 818 416
nicipality at least once
a week
-Removed by the Mu- 44 162 9 252 822 45 344
nicipality less often
-Communal refuse Data not Data not
dump used available available
-Own refuse dump Data not Data not
available available

pg 360 // City of Tshwane Annual Report 2008/2009

Annual Report v2.indd 360 2009/06/04 09:35:07 AM

 CHAPTER FIVE: Functional Statistics Analysis

-No rubbish disposal Data not Data not

available available

Total and projected tonnage of all refuse disposed:

- Domestic/com- 2 335 46 396 874 1 856 518 108 36 877 564 2 476 906 t 45 912 410
mercial 243
- Garden 268 552 8 037 986 657 252 6 390 198 651 648 t 6 126 816
Total number of refuse disposal sites:
- Domestic/com- 9 46 386 874 9 36 877 564 9 45 912 410
mercial
- Garden 11 8 037 986 11 6 390 198 11 6 126 816
Anticipated expan- No data available

sion of refuse removal

service:
- Domestic/commer- 439 012 21 599 380 336 580 17 553 337
cial (number of clients)
- Garden (number of Data not Data not

clients) available available

Free basic service provision:

- Quantity (number of 90 000 1 656 000 90 000 1 656 000

households affected)
- Quantum (value to - 18 - 40 18 - 40
each household)
Total operating cost of 259 309 858 236 072
Waste Management 614
Section

108
Decrease due to recycling activities

City of Tshwane Annual Report 2008/2009 // pg 361

Annual Report v2.indd 361 2009/06/04 09:35:11 AM

 (c) Key performance areas

Annual Report v2.indd 362

pg 362
Activities/ Initia- Five-year pro- Achieved Comments/ Correc-
KPA KPI Target 2007/08 Actual 2007/08 Rating
tives gramme target 2006/07 tive Actions

//
Eradication/reduc- Refuse collection Number of sites in un- 90 000 40 000
tion of infrastructure proclaimed areas serviced
backlogs
Provide quality infra- Refuse collection Tons of waste disposed of 1 651 252 No data available
structure for growth and treated
Waste removed (tons per 317 000 No data available
annum) by contractors
Square metres (m²) of 26 676 653 m² Seasonal in nature 18 579 117,85 m2
grass cut 38 867 520 ±
3 999 338
Cubic metres (m³) of il- 374 976 m³ 1 615 332,15 m3

City of Tshwane Annual Report 2008/2009

legal dumping removed
5 784 004
Number of new house- 112 294 9 762 16 000 11 830 The restriction on the data
CHAPTER FIVE: Functional Statistics Analysis

hold waste removal office at Waste Manage-

service points ment to create Business
Partners contributes largely
to the delivery of new
services especially for the
RDP houses
No of swivel bins 95 100 1 585 1 585 has been Target achieved
delivered
No of new business/com- All applications All applications 2 041
mercial waste removal provided for provided for
service points
Total tonnage domestic No target – total No target – total 2 451 597 ton
waste collected tonnage is collected tonnage is collected

2009/06/04 09:35:15 AM
Annual Report v2.indd 363
Activities/ Initia- Five-year pro- Achieved Comments/ Correc-
KPA KPI Target 2007/08 Actual 2007/08 Rating
tives gramme target 2006/07 tive Actions
Total tonnage commercial DATA NOT AVAIL- DATA NOT AVAIL- 230 850 ton
waste collected ABLE Depends on ABLE Depends on
demand demand
Recycle waste Tonnage of disposed 34 011 t
waste treated/recycled
Ensure maintenance Landfill manage- Number of buyback 3 No data available
of existing infrastruc- ment centres operated
ture
Number of weighbridges 6 No data available
operated
Capacity of landfill/refuse 15% 3 000 000 t before 2 476 906 t before Annual project of 3 million
disposal site as a propor- recycling recycling ton waste before recycling
tion of projected tonnage and 2.5 million after
demand p.a. 2 500 000 t after 2 442 894 t after recycling.
recycling recycling
Implemented recycling
initiatives where waste is
generated.
Operational expen- Waste removal services 10,7% (corporately) Total operating in-
diture on repairs repairs and maintenance come: R24 856 141
and maintenance to the total operating
income for waste removal Repairs and main-
tenance: R105 714
702 = 42%

City of Tshwane Annual Report 2008/2009 //

CHAPTER FIVE: Functional Statistics Analysis

pg 363

2009/06/04 09:35:19 AM
 Activities/ Initia- Five-year pro- Achieved Comments/ Correc-
KPA KPI Target 2007/08 Actual 2007/08 Rating

Annual Report v2.indd 364

tives gramme target 2006/07 tive Actions

pg 364
Increase participa- Optimise labour No of community-based 27 No data available
tion and broaden intensity and com- contracts

//
the contribution in munity involvement
growing the city’s through contract
economy through management Clean-
the development of ing of public areas
SMMEs, coopera-
tives, the informal
sector and the role
of black people,
women and the
youth
Promote viable (sus- Improve environ- Tonnage of disposed Depends on amount Depends on amount 34 011 ton
tainable) communi- mental sustainability waste treated/recycled of waste disposed of of waste disposed of

City of Tshwane Annual Report 2008/2009

ties by establishing Reduce per capita % reduction per capita 5 275 kg
mixed human waste disposal to waste disposal to landfill
settlements with landfill
CHAPTER FIVE: Functional Statistics Analysis

social and cultural

programmes that
enable the celebra-
tion of diversity and
foster social inclu-
sion
Entrench a customer Respond and No of customer com- No target is set. The 1 858
–focussed approach manage customer plaints regarding waste goal is to respond
to citizenry and complaints in the management services to all and to reduce
business by setting Agriculture and through improved
standards that we Environmental Man- service delivery
achieve, guided agement Depart-
by the Batho Pele ment
principles
Sustainability man- All revenue gen- R income generated 13 192 287 No data available
agement eration targets are
realised by depart-
ments that generate
revenue

2009/06/04 09:35:23 AM
Annual Report v2.indd 365
d) Landfill yearly waste volumes received: 2001/02 – 2007/08

SITE/2007 2001/02 Ton 2002/03 Ton 2003/04 Ton 2004/05 Ton 2005/6 Ton 2006/07 Ton 2007/08 Ton
Derdepoort 199 823 176 724 475 618 413 158 431 573 251 947 222 180
Garstkloof 551 459 229 080 695 481 315 366 267 721 233 730 134 082
Ga-Rankuwa 146 467 112 356 79 009 42 248 96 077 126 961 152 138
Hatherley 127 892 143 700 157 719 183 646 230 953 288 054 219 652
Kwaggasrand 134 834 169 092 366 416 405 663 403 755 310 984 334 837
Onderstepoort 151 046 209 280 335 824 331 556 473 511 683 521 610 612
Soshanguve 85 047 92 964 113 159 97 478 96 995 197 673 136 685
Temba 154512 52 368 25 872 22 871 63 556 41 331 34 002
Valhalla 441 168 212 916 494 085 363 490 271 102 267 639 397 391
Subtotal 1 992 248 1 398 480 2 743 183 2 175 476 2 335 243 2 401 840 2 241 594

e) Project progress

R at start of finan- Adjustments R spent end June

KPA PROJECT NAME Project number Fund Ward
cial year budget 2008
Provide quality infra- Bulk containers 712090 1 6 000 000 No data available 7 135 410 Tshwane wide
structure for growth 240 litre containers 712092 1 8 000 000 No data available 784 864 Tshwane wide
1000 litre containers 712093 1 1 000 000 No data available 949 221 Tshwane wide

City of Tshwane Annual Report 2008/2009 //

Swivel bins 712094 1 2 000 000 No data available 2 399 562 Tshwane wide
CHAPTER FIVE: Functional Statistics Analysis

pg 365

2009/06/04 09:35:27 AM
 CHAPTER FIVE: Functional Statistics Analysis

5.4.9 Waste-water Management

(a) Overview and description of key issues

Waste-water collection management includes the operation and maintenance of municipal sew-
erage services and the facilitation of development in the city, being responsibilities of the Water
and Sanitation Division. The sewerage functions of the Municipality are administered as follows
and include:

• Ongoing assistance to facilitate new developments and ensure that sewerage infrastructure
was installed in accordance with standards and specifications. However, the personnel situ-
ation is severely impacting on this responsibility and the division is no longer able to cope
with the increasing workload.
• Analysis of all aspects of the systems to proactively identify worn-out infrastructure, problems
and bottlenecks.
• The augmentation of the Pienaars River Outfall Sewer: The construction of about 4 km out-
fall sewer and 453 m of concrete lined sewer tunnel at a cost of R55 million.
• The augmentation of the Moreletaspruit Outfall Sewer: Four main contracts were awarded
and work started late in the financial year. About 1 km of outfall sewer and pipe jacking was
done at a cost of R10 million.
• Continuous management and control to ensure availability of service.

The Water and Sanitation Division is also responsible for waste-water management. These ser-
vices include chemical and bacteriological analyses, but do not take account of stormwater man-
agement and drainage systems which resides within the jurisdiction of the Roads and Stormwater
Division. The following were among the functions performed during the 2006/07 financial year:

• The treatment of waste water to the prescribed standards set by the Department of Water
Affairs and Forestry.
• Ongoing assistance to ensure that new infrastructure is developed and waste-water treat-
ment infrastructure is built in accordance with the latest technology and specifications.
• Chemical and bacteriological analyses (according to the required standards) of water in
the waste-water treatment process, water in rivers and industrial effluents. The number of
analyses for the period was –
- 25 456 river analyses;
- 2 834 power station analyses;
- 18 602 industrial effluent analyses; and
- 58 673 waste-water treatment and borehole analyses.
• Continuous management and control to ensure the optimum availability and performance
of the waste-water treatment works.

pg 366 // City of Tshwane Annual Report 2008/2009

Annual Report v2.indd 366 2009/06/04 09:35:31 AM

Annual Report v2.indd 367
(b) Analysis of the function

2006/07 2007/08
Number and cost to employer of all personnel associated with sewerage functions:
No R (000s) No R (000s)
- Professional workers (engineers/consultants) 16 35 000 16 42 000
- Fieldworkers (supervisors/foremen) 44 44
- Office workers (clerical/sdministration) 15 15
- Non-professional workers (blue collar, outside workforce) 148 148
- Temporary workers 4 4
- Contract workers 18 18
Note: total number to be calculated on full-time equivalent (FTE) basis, total cost to include total salary 245 35 000 245 42 000
package
Number of staff associated with the waste-water treatment function and their cost to the Municipality: No data available No data available No data available No data available
- Legislators, senior officials and managers 4 No data available 4 No data available
- Technicians and associate professionals 24 No data available 24 No data available
- Clerks 5 No data available 5 No data available
- Plant and machine operators and assemblers 25 No data available 25 No data available
- Elementary workers 186 No data available 186 No data available

Note: total number to be calculated on full-time equivalent (FTE) basis, total cost to include total salary package

244 32 400 244 37 500

Number of households with sewerage services, and type and cost of service: No R (000s) No R (000s)
- Flush toilet (connected to sewerage system) 376 000 60 000 382 000 No data available
- Flush toilet (with septic tank) n/a No data available No data available No data available

City of Tshwane Annual Report 2008/2009 //

- Chemical toilet n/a No data available No data available <cost>
- Pit latrine with ventilation 8 700 On-site: owners are No data available On-site: owners are
CHAPTER FIVE: Functional Statistics Analysis

responsible responsible

pg 367
- Pit latrine without ventilation (Includes informal areas) 174 612 On-site: owners are No data available On-site: owners are
responsible responsible

2009/06/04 09:35:36 AM
 2006/07 2007/08

Annual Report v2.indd 368

Number and cost to employer of all personnel associated with sewerage functions:
No R (000s) No R (000s)

pg 368
//
- Bucket latrine n/a No data available No data available <cost>
- No toilet provision n/a No data available No data available <cost>
Note: if other types of services are available, please provide details 32 712 272 328
Anticipated expansion of sewerage (number of households): 7 000 95 million No data available No data available
- Flush/chemical toilet No data available No data available
- Pit latrine 7 000 95 000 No data available No data available
- Bucket latrine <total> <cost>
- No toilet provision <total> <cost>
Estimated backlogs (excluding informal areas) 38 218 550 million 32 712 792 328

Note: provide total number of households anticipated to benefit and total additional operating cost per year to the Municipality

The Municipality was mandated to –

City of Tshwane Annual Report 2008/2009

- replace, upgrade or construct waste-water treatment works. 20 Mℓ per day 20 million 20 Mℓ per day 44 million
Waste-water treatment works and the design capacity of each:
CHAPTER FIVE: Functional Statistics Analysis

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
Effluent standards set by the Department of Water Affairs and Forestry for discharges into a river 20 Mℓ per day 139 million 20 Mℓ per day 139 million

2009/06/04 09:35:40 AM
Annual Report v2.indd 369
2006/07 2007/08
Number and cost to employer of all personnel associated with sewerage functions:
No R (000s) No R (000s)
- pH ≥ 6,5 ≤ 8,5 ≥ 6,5 ≤ 8,5
- Electrical conductivity ≤ 80 mS/m ≤ 80 mS/m
- Nitrate (as N) ≤ 6 mg/ℓ ≤ 6 mg/ℓ
- Free and saline ammonia (as N) ≤ 1 mg/ℓ ≤ 1 mg/ℓ
- Chemical oxygen demand (as O) ≤ 50 mg/ℓ ≤ 50 mg/ℓ
- Orthophosphate (as P) ≤ 0,9 mg/ℓ ≤ 0,9 mg/ℓ
- Suspended solids ≤ 10 mg/ℓ ≤ 10 mg/ℓ
- Free residual chloride (as CI) ≤ 0,2 μg/ℓ ≤ 0,2 μg/ℓ
- Faecal coliforms ≤150 ≤150
CFU/100 mℓ CFU/100 mℓ
Free basic service provision:
- Quantity (number of households affected) 351,000 91 200 34 656 4 925
- Quantum (value to each household) 260 142
Note: Provide details of how many households receive the FBS provision, and the average value it means 34,656 142
per household. Describe in detail the level of free basic services provided.
Total operating cost of waste-water treatment function 122 million 154 169 358
Total operating cost of sewerage function 145 000 120 297 877

City of Tshwane Annual Report 2008/2009 //

CHAPTER FIVE: Functional Statistics Analysis

pg 369

2009/06/04 09:35:44 AM
 (c) Key performance areas

Annual Report v2.indd 370

Activities/ Initia- Five-year pro- Actual Target Comments/ Cor-

pg 370
KPA KPI Actual 2007/08 Rating
tives gramme target 2006/07 2007/08 rective Actions

//
Provide quality basic Ensure sewer capac- Length of bulk sewer net- Annual targets: 0m 1 507 m 0 m new IDP 710393B: The instal-
services and infrastructure ity to meet the grow- work pipelines installed 2006/07: 0 lation of 1 507 m was
– sanitation services ing demand 109 (m) to support growing 2007/08: 1 507 6597 m upgraded planned. The contractor
was appointed in Feb
demand (new) 2008/09: 1 280 and replaced
2008. Delays due to:
2009/10: 4 500
2010/11: 2 000
Dispute amongst Joint
Venture Contractors

Legal and tender processes

6 597 m of bulk water
pipes were upgraded and
replaced (see mainte-

City of Tshwane Annual Report 2008/2009

nance). Variance on targets
will be installed in the next
financial years
CHAPTER FIVE: Functional Statistics Analysis

Length of internal Annual targets: 3 134 m 0m 0 m new 0 m of new internal

sewer network pipelines 2006/07: 3 134 sewer network pipes was
installed (m) to support 2007/08: 0 47 425 upgraded planned. 47 425 m of
internal sewer network
growing demand (new) 2008/09: 59 720 and replaced
pipes were upgraded and
2009/10: 159 400
replaced.
2010/11: 86 000
Mℓ waste water treat- Annual targets: 557,2 Mℓ /d 20 Mℓ /d 0 Mℓ /d Increase in capacity
ment capacity upgraded 2006/07: 0 Mℓ /d planned for the end of the
(capital) 2007/08: 20 Mℓ /d 2007/08 financial year, is
delayed to July 08 due to
2008/09: 0 Mℓ /d
civil contractor not being
2009/10: 0 Mℓ /d
on schedule.
2010/11: 16 Mℓ /d
2011/12: 85 Mℓ /d
Full penalties paid by civil
contractor

109
Bulk and internal network sewer pipelines and waste water treatment capacity are provided to formal and informal areas in an integrated way and therefore no differentiation is made between proclaimed and un-proclaimed areas in this regard.

2009/06/04 09:35:48 AM
Annual Report v2.indd 371
Activities/ Initia- Five-year pro- Actual Target Comments/ Cor-
KPA KPI Actual 2007/08 Rating
tives gramme target 2006/07 2007/08 rective Actions
Eradicate the back- No of households with Annual targets: 1 473 3 311 1 217 This division is committed
log in formal areas a below basic level of 2006/07: 1 473 to achieve the 2010 sani-
(proclaimed areas) service provided with 2007/08: 3 311 tation targets. It is however
with access to at at least a basic level of 2008/09: 4 585 subject to:
least a basic level of sanitation service 2009/10: 2 019
sanitation 2010/11: 26 108 • The approval of the spe-
cial procurement process
for the appointment of con-
sultants and contractors.
• The performance of con-
sultants and contractors.
• Availability of required
construction material and
contractors with the neces-
sary CIDB registration.
•Suitable weather and
geological conditions.

Continuously repair and Waste-water treat- Mℓ /day waste water Annual targets: 380 Mℓ/d 557,2 Mℓ/d 527 Mℓ/d Normal daily flow received
maintain existing sewer ment treated per day 2006/07: 380 Mℓ/d at WWTW.
infrastructure 2007/08: 577,2 Mℓ/d
2008/09: 577,2 Mℓ/d The first upgrade of 20
2009/10: 577,2 Mℓ/d Mℓ/d for Sunderland Ridge
2010/11: 577,2 Mℓ/d WWTW is due for comple-
2011/12: 678,2 Mℓ/d tion by July 2008, one
month delay due to the
civil contractor not being
on schedule.

Full penalties paid by the

civil contractor. Increase in
capacity planned for the
end of the 2007/08 finan-

City of Tshwane Annual Report 2008/2009 //

cial year, is delayed to July
08 due to civil contractor
CHAPTER FIVE: Functional Statistics Analysis

not being on schedule.

pg 371
Full penalties paid by civil
contractor.

2009/06/04 09:35:52 AM
 Activities/ Initia- Five-year pro- Actual Target Comments/ Cor-
KPA KPI Actual 2007/08 Rating

Annual Report v2.indd 372

tives gramme target 2006/07 2007/08 rective Actions

pg 372
Repairs and mainte- Sewer repairs and A minimum of 14% 9,55% 9,29% 10,93% Monthly/Quarterly per-

//
nance budget maintenance to TOI (total per annum formance dependant on
operating income for various factors. Done
sewer) as and when required.
A minimum of 14% per
annum is required to
ensure networks are
kept in good condition.
R spent on infrastructure NA R149 830 000 R101 725 000 R113 506 458 Monthly/Quarterly
(upgrade and replace) performance dependant
on various factors.

Project implementation
as per Project Manage-
ment and Control

City of Tshwane Annual Report 2008/2009

(PMandC) process to
achievement of the an-
nual targets.
CHAPTER FIVE: Functional Statistics Analysis

Private blockage 3 085 complaints No annual target. 3 285 complaints

removals R1 021 million Complaints are
attended to as and R1,091 million
when received.
Municipal blockage 16 568 com- No annual target. 23 742 complaints
removals plaints R9 243 Complaints are
million attended to as and R11,819 million
when received.
Entrench a customer -fo- Manage response Number of customer No annual target. Sanitation:
cused approach to citizenry times to customer re- complaints received per Complaints are
and business by setting quests and enquiries function attended to as and Received: 6709
standards that we achieve, when received Completed: 4577
guided by the Batho Pele
principles

2009/06/04 09:35:56 AM
Annual Report v2.indd 373
d) Progress with project implementation

Project R at start of finan- Adjustments R spent end

KPA Project Name Fund Ward
number cial year budget June 2008

Continuously repair and maintain exist- Upgrading of sewers in Mamelodi 710007 1 20 000 000 28 396 000 28 393 708 6, 15, 18, 23, 28, 38,
ing sewer infrastructure 40, 67
Continuously repair and maintain exist- Upgrading of sewers in the Tshwane 710010 1 1 725 000 425 000 424 726 51, 51, 51, 51, 62,
ing sewer infrastructure area - Atteridgeville sewer networks 62, 62, 62, 63, 63,
63, 63, 68, 68, 68,
68, 72, 72, 72, 72
Eradicate the backlog Extension of the Sunderland Ridge 710364 5 10 000 000 10 000 000 10 000 000 47, 48, 57, 61, 64,
Waste-water Treatment Works 65, 66, 69, 70
Eradicate the backlog Extension of the Sunderland Ridge 710364 1 20 000 000 21 950 000 18 023 259 47, 48, 57, 61, 64,
Waste-water Treatment Works 65, 66, 69, 70
(WWTW)
Continuously repair and maintain exist- Replacement, upgrading and construc- 710411 1 6 000 000 7 000 000 6 921 773 3, 5, 6, 22, 37, 49,
ing sewer infrastructure tion of waste-water treatment works 70, 74, 75
Eradicate the backlog Mandela Village sewer replacement 710753 5 9 000 000 9 000 000 8 999 996 73
Continuously repair and maintain exist- Mandela Village sewer replacement 710753 1 8 600 000 4 312 000 2 690 719 73
ing sewer infrastructure
Continuously repair and maintain exist- Replacement of sewers 711404 1 8 000 000 8 000 000 7 998 955 11, 25, 26, 27, 29,
ing sewer infrastructure 33, 34, 35, 36, 37,
48, 57, 61, 64, 65,
66, 69, 70, 101
Continuously repair and maintain exist- Klerksoord and Heatherdale main 711528 1 8 600 000 11 284 000 11 284 000 4

City of Tshwane Annual Report 2008/2009 //

ing sewer infrastructure sewer
Ensure sewer capacity to meet the Bulk sewer in Klip-Kruisfontein 711534 1 150 000 150 000 73 962 39
CHAPTER FIVE: Functional Statistics Analysis

growing demand

pg 373
Eradicate the backlog Sewer networks: Soshanguve Blocks 711756 1 340 000 3 685 000 3 665 836 39
TT and TT Ext

2009/06/04 09:36:00 AM
 Project R at start of finan- Adjustments R spent end
KPA Project Name Fund Ward

Annual Report v2.indd 374

number cial year budget June 2008

pg 374
Eradicate the backlog Kopanong housing project bulk water 710393 1 3 180 000 1 500 000 1 474 338 20

//
and sewerage (sewer)
Continuously repair and maintain exist- Moreletaspruit outfall sewer 712121 1 24 500 000 29 130 970 29 076 706 41, 42, 43, 44, 45,
ing sewer infrastructure 46, 47, 52
Implement job creation initiatives Re-establishment of WWC operational 712123 1 8 000 000 800 000 799 482 4, 11, 12, 19, 20, 21,
depots 22, 25, 26, 27, 29,
30, 31, 32, 33, 34,
35, 36, 37, 39, 49,
73, 74, 75
Continuously repair and maintain exist- Extension of Zeekoegat WWTW 712125 1 3 000 000 3 000 000 2 998 080 40, 41, 42, 43, 44,
ing sewer infrastructure 45, 46, 47, 52, 56,
100
Eradicate the backlog Extension of Temba WWTW 712126 5 2 159 000 2 158 998 8, 73, 74, 75, 76

City of Tshwane Annual Report 2008/2009

Eradicate the backlog Extension of Temba WWTW 712126 1 8, 73, 74, 75, 76
Continuously repair and maintain exist- Extension of Klipgat WWTW 712127 1 1 000 000 550 000 524 503 9, 12, 19, 20, 22, 29,
ing sewer infrastructure 30, 31, 32, 33, 35, 36
CHAPTER FIVE: Functional Statistics Analysis

Continuously repair and maintain exist- Extension of Rooiwal WWTW 712128 1 3 000 000 1, 2, 4, 5, 7, 49, 50,
ing sewer infrastructure 51, 52, 53, 54, 55,
56, 58, 59, 60, 61,
62, 63, 66, 68, 71, 72

2009/06/04 09:36:04 AM
 CHAPTER FIVE: Functional Statistics Analysis

5.4.10 Road Transport

5.4.10.1 Transport Planning

a) Overview and description of key issues

The Transport Development Division consists of 6 sections namely:

1. Transport Research, Economics and Funding

2. Transport Planning and Information Systems
3. Transport Operations Development
4. Transport Facility Development
5. Municipal Transport Services
6. The Wonderboom Airport which was also placed as a functional responsibility with the Trans-
port Development Division since 1 July 2007

Strategic objectives

To identify, plan, construct, operate, manage and control transport facilities (including public
transport roads/routes and airports) through -

• developing technical tools to ensure a fully integrated and sustainable transport system for
the City of Tshwane and to oversee the development, implementation and monitoring of the
Integrated Transport Plan (ITP);
• eradicate transport infrastructure backlogs;
• improving the utilisation of public transport modes;
• leasing of new buses for Tshwane Transport according to a replacement programme;
• managing and maintaining public transport facilities; and
• to operate, manage and develop Wonderboom Airport in accordance with (South African
Civil Aviation Authority (CAA) requirements and International Civil Aviation Organisation
(ICAO) standards ensuring optimal aviation safety.

Key issues

The critical key issues regarding Wonderboom Airport are to ensure that CAA compliance re-
quirements are at all times met as prescribed by the applicable legislation, as well as to enhance
the development of the airport to become a fully sustainable entity.

City of Tshwane Annual Report 2008/2009 // pg 375

Annual Report v2.indd 375 2009/06/04 09:36:09 AM

 CHAPTER FIVE: Functional Statistics Analysis

b) Analysis of the function

2006/07 2007/08
Details
Number R Number R
Number and cost to employer of transport planning staff employed:
- Professional workers 16 411 045,60 16 52 6238.83
(managerial/specialist)
- Field workers (supervisory/foremen) 6 116 209.95
- Office workers 21 265 109,00 13 290 734.98
(clerical/administrative)
- Non-professional workers 11 108 917.81
(blue collar, outside workforce)

pg 376 // City of Tshwane Annual Report 2008/2009

Annual Report v2.indd 376 2009/06/04 09:36:13 AM

Annual Report v2.indd 377
(c) Key performance areas

Comments/
Activities/ Initia- Five-year pro- Achieved
KPA KPI Target 2007/08 Actual 2007/08 Rating Corrective Ac-
tives gramme target 2006/07
tions
Invest in economic Wonderboom No of aircraft move- 100% compliance Complete plan- Negotiate funding 136 400 aircraft New record.
infrastructure and a Airport, operations, ments with CAA require- ning activities to to proceed with initi- movements experi-
transport system that management and ments develop airport’s ated projects, aim at enced Complete prepara-
promotes greater development real develop-ment 100% CAA require- tory work for arriv-
efficiency regard- potential ment compliance als, departure halls,
ing logistics, and initiate scheduled
optimise productivity flights, comply
of human capital by 100% to CAA
reducing travelling compliance require-
time between home ments, enhance
and work aviation safety
% compliance of 100% compliance Status quo investiga- 100% complete 30% complete ROD on submitted
WBAs operations tion completed EIA outstanding -
with aviation legisla- delay by GDACE.
tion Operational
manual, airport
emergency plan,
aviation safety plan
completed.
To improve the func- Number of feasibility 2 feasibility studies Status quo analysis 1 feasibility study 1 complete Target achieved
tionality of public studies
transport Transport Authority TA implemented Council report Implement TA MEC approval Letter submitted by
(TA) established outstanding EM to MEC.
TIFA 110 establish- Begin construction Council approval Appoint facilitator Facilitator not ap- No funds available.
ment facilitated and appointment of and initiate feasibil- pointed
project co-ordinator ity study

City of Tshwane Annual Report 2008/2009 //

To develop and Data inputs to exist- 100% review of ITP Council approval 100% complete 100% complete Service provider to
CHAPTER FIVE: Functional Statistics Analysis

maintain an ing ITP be appointed.

Integrated Transport

pg 377
Plan (ITP)
110
Tshwane International Freight Airport

2009/06/04 09:36:18 AM
 Comments/
Activities/ Initia- Five-year pro- Achieved
KPA KPI Target 2007/08 Actual 2007/08 Rating Corrective Ac-

Annual Report v2.indd 378

tives gramme target 2006/07
tions

pg 378
To complete plan- Output: Fully opera- Completion of 100% operational 20% complete op- 100% ops plan Target achieved

//
ning and detail tional BRT system. phase 1 1st phase (1:92 km erational plan and completed
design of the 1st that will run from begin detail design
phase of the Bus Outcome: Effective Mabopane through
Rapid Transit System and efficient usage the CBD past Hat-
(BRT) of the BRT System field via Menlyn into
that provides a Mamelodi)
quality, safe and
reliable PT service
Invest in economic To improve the utili- Status quo inves- Annual review Consultant ap- 20% improvement 20% completed BRT operational
infrastructure and a sation of PT modes tigation on use of pointed plan completed
transport system that private cars and
promotes greater changes in travel
efficiency regard- patterns
ing logistics, and Maintain and clean Number of public Cleaning and 48 48 48 Of the 15 facilities

City of Tshwane Annual Report 2008/2009

optimise productivity all public transport transport facilities maintenance of all constructed, 2 have
of human capital by facilities per annum maintained facilities to be added to the
reducing travelling facilities that need
CHAPTER FIVE: Functional Statistics Analysis

time between home to be maintained

and work (cleaned) by the city
annually – ie 50
for the 2008/09
financial year.
R spent on opera- R 25 M R 15 M R 15 M R 15 M Target achieved
tional repairs and
maintenance of
public transport
facilities
Eradicate public No of public Construct 47 public 18 18 facilities 15 facilities con- Lost staff
transport facility transport facilities transport facilities by structed
backlogs constructed 2011
Number of new and 4 per annum 4 4 0 Availability of funds
informal facilities
formalised to basic
level of service per
annum

2009/06/04 09:36:22 AM
Annual Report v2.indd 379
Comments/
Activities/ Initia- Five-year pro- Achieved
KPA KPI Target 2007/08 Actual 2007/08 Rating Corrective Ac-
tives gramme target 2006/07
tions
Increase participa- Give preference Percentage of local 90% 60% 70% 70% Target achieved
tion and broaden to local vendors to vendors used for
the contribution in provide non-spe- non-specialised
growing the city’s cialised service services
economy through
the development of
SMMEs, coopera-
tives, the informal
sector and the role
of black people,
women and the the
youth
Prudent financial Expenditure man- % Capex spent 100% (WBA) 100% (WBA) Target achieved
management agement 85% 67,1% 70% 45,75% (Transport
Planning)
% Opex spent 100% (WBA) 100% (WBA) Target achieved
100% 100% 95% 51,33% (Transport Income received from
Planning) NDOT has decreased
the expenditure pattern
as the amounts will
be rolled over into the
2008/09 finacial year.
Remuneration as a To be established 10% 10% 9% WBA: The remunera-
% of the total tion budget has to be
adjusted to make
provision for the new
permanent organisa-
tional structure (once
approved) as to staff
the airport to meet

City of Tshwane Annual Report 2008/2009 //

CAA requirements
and ensuring the
CHAPTER FIVE: Functional Statistics Analysis

optimal working of the

airport according to

pg 379
the airport’s license
requirements

2009/06/04 09:36:27 AM
 Comments/
Activities/ Initia- Five-year pro- Achieved
KPA KPI Target 2007/08 Actual 2007/08 Rating Corrective Ac-

Annual Report v2.indd 380

tives gramme target 2006/07
tions

pg 380
Sound HR manage- Performance man- % of employee To address all griev- 100% To have the first and WBA: The first The airport’s validated
organisational structure

//
ment agement grievances finalised ances successfully second personnel personnel griev-
grievance addressed ance can only be needs to be approved

successfully addressed if a
permanent structure
is approved for
the airport. The
second grievance
process is in stage
3 and needs to be
finalised.
Number of employ- 15 3 5 8 Improvement on
ees trained training pro-
grammes

City of Tshwane Annual Report 2008/2009

Number of em- 100% 100% No targets set – 1
ployees disciplined deal with disciplin-
according to the dis- ary matters as
CHAPTER FIVE: Functional Statistics Analysis

ciplinary procedure needed

Levels to which All management Manager Manager and chief Manager and chief
individual perfor- levels level level
mance management
is cascaded

2009/06/04 09:36:32 AM
Annual Report v2.indd 381
d) Progress with Project Implementation

Project R at start of Adjustments R spent end Comments/ Correc-

KPA Project Name Fund Ward
number financial year budget June 2008 tive Action

Wonderboom Airport, op- Electrical reticulation 712571 1 750 000 No data available 750 000 50 Less than 50% of target
erations, management and upgrade reached due to lack of
development appropriate budget (the
available budget was 100%
spent)
Upgrade water reticula- 712572 1 500 000 No data available 500 000 50 Less than 50% of target
tion reached due to lack of
appropriate budget (the
available budget was 100%
spent)
Eradicate public transport facil- Mabopane Station Modal 710657 5 13 000 000 13 000 000 9 134 004 19
ity backlogs Interchange
Eradicate public transport facil- Mabopane Station Modal 710657 1 3 000 000 3 000 000 1 298 929 19
ity backlogs Interchange
Eradicate public transport facil- Dr George Mukhari 710658 1 1 250 000 700 000 349 432 31
ity backlogs Hospital, Bus and Taxi
Facilities
Eradicate public transport facil- Pretoria CBD Public 710661 1 1 250 000 1 250 000 1 213 950 3
ity backlogs Transport Facilities
Eradicate public transport facil- Provide Bus and Taxi Lay- 710662 1 1 ,500 000 1 500 000 913 887 Tshwane wide
ity backlogs bye’s and Shelters
Eradicate public transport facil- Dairy Mall Taxi Rank: Pro- 710667 1 5 000,000 3 500 000 1 751 967 60

City of Tshwane Annual Report 2008/2009 //

ity backlogs vide Paving Shelter Lights
Eradicate public transport facil- Marabastad Bus Facilities 710670 1 1 000 000 1 550,000 747 293 3
CHAPTER FIVE: Functional Statistics Analysis

ity backlogs

pg 381
Eradicate public transport facil- East Lynne Bus and Taxi 710671 5 4 000 000 4 000 000 0 52
ity backlogs Facilities

2009/06/04 09:36:37 AM
 Project R at start of Adjustments R spent end Comments/ Correc-
KPA Project Name Fund Ward

Annual Report v2.indd 382

number financial year budget June 2008 tive Action

pg 382
Eradicate public transport facil- Saulsville Station Pedes- 710743 1 500 000 No data available 0 68

//
ity backlogs trian Facility
Eradicate public transport facil- Klip-Kruisfontein Multi- 711754 5 1 500 000 1 500 000 1 374 425 37
ity backlogs modal Transfer Facility
Eradicate public transport facil- Rainbow Junction/Pretoria 712382 5 1 800 000 1 800 000 No data available 50
ity backlogs North Public Transport:
2010
Promote a culture of com- Loftus Versfeld Pedestrian 712561 3 2 000 000 No data available No data available 56
petitive and professional sports Link (DOT FUNDED)
activities and prepare the city
to host the Confederation and
FIFA World Cup events in 2009
and 2010 respectively

City of Tshwane Annual Report 2008/2009

Promote a culture of com- Other Transport Support 712592 3 4 000 000 4 000 000 No data available Tshwane wide
petitive and professional sports Projects - 2010 (Transport
activities and prepare the city Infrastructure)
CHAPTER FIVE: Functional Statistics Analysis

to host the Confederation and

FIFA World Cup events in 2009
and 2010 respectively
Sustainability management Electronic Ticketing Sys- 712593 1 15 000 000 15 000 000 No data available Tshwane wide
tem (Bus Service)
Sustainability management Electronic Ticketing Sys- 712593 3 10 000,000 10 000 000 No data available Tshwane wide
tem (Bus Service)
Eradicate public transport facil- Construction of the Bloed 712614 1 1 000 000 No data available No data available Tshwane wide
ity backlogs Street Taxi Facility
Eradicate public transport facil- Ward-based Project: 712617 1 7500 000 7 500 000 3 673 793 8, 9, 12,14,19,
ity backlogs Transport 20, 21, 22, 24,
30, 31,32 ,40
(Nellmapius
part), 43, 48,
73, 74, 75, 76

2009/06/04 09:36:41 AM
 CHAPTER FIVE: Functional Statistics Analysis

5.4.10.2 Public Buses

(a) Overview and description of key issues

The Tshwane Bus Services provides the following services:

• Transportation of residents and visitors in certain areas of the city

• Special bus hires
• Bus contract services
• Repair and maintenance of buses
• Route planning and time scheduling
• Ticket sales at ticket outlet points

The bus services needs an electronic-fare collection system which will encompass ticketing, sur-
veillance cameras, tracking system and communication system. A tender has been awarded to
determine the specifications for such a system and it is hoped that the recommendations will be
finalised, where after the bus services will, subject to funds being available, go out on tender to
acquire the technology. It is envisaged that the installation of this system will boost revenue by
about 30% as a result of enhanced revenue collection.

(b) Analysis of the function

2006/07 2007/08
Statistical information and R expenditure
Total No Cost Total No Cost
1. Number and cost to employer of all public bus 334 52 859 691 433 74 625 087
service personnel:
- Professional workers (engineers/consultants) 2 No data avail- 1 475 542
able
- Fieldworkers (supervisors/foremen including 24 No data avail- 9 2 302 596
inspectors) able
- Office workers (clerical/administration) 9 No data avail- 14 2 393 548
able
- Non-professional workers (blue collar, outside 272 No data avail- 371 68 941 439
workforce including drivers) able
- Temporary workers 27 No data avail- 21 511 962
able
Contract workers 0 No data avail-
able

Note: Total number to be calculated on full-time equivalent (FTE) basis, total cost to include total salary package

City of Tshwane Annual Report 2008/2009 // pg 383

Annual Report v2.indd 383 2009/06/04 09:36:45 AM

 CHAPTER FIVE: Functional Statistics Analysis

2005/6 2006/07 2007/08

Total No Cost Total No Cost Total No Cost

Number and total operat- 109 370 450 No data No data No data No data avail-
ing cost of public buses available available available able
servicing population:
Aged ten years or greater 296 No data avail- 296 R49 530 000 296 R72 402 894
able

Note: this figure should be taken from the plant replacement schedule

Total kilometres of all 8 200 000 No data avail- 8 369 123 No data No data No data avail-
buses travelled: able available available able

Note: total number of kilometres travelled by entire fleet for year

Total number of passen- 13 100 000 No data avail- 14 279 126 No data No data No data avail-
gers: able available available able

Note: total number of paying passengers travelling for year

Total number of bus re- 1 663 No data avail- 40 per annum No data No data No data avail-
lated complaints received: able available available able

Note: total number of complaints received by paying customers for year

Contribution from the No data 24 387 700 No data R 24 000 000 No data R 24 467 799
Municipal Tax Fund available available available

Note: total value of specific bus transport grants actually received during year to be recorded over the five quarters -
Apr to Jun last year, Jul to Sep, Oct to Dec, Jan to Mar, Apr to Jun this year

Total operating cost of No data 149 643 No data R83 437 690 R106 796 092
public bus service function available 171 available

pg 384 // City of Tshwane Annual Report 2008/2009

Annual Report v2.indd 384 2009/06/04 09:36:49 AM

Annual Report v2.indd 385
(c) Key performance areas

Comments/
Activities/ Initia- Five-year pro-
KPA KPI Actual 2006/07 Target 2007/08 Actual 2007/08 Rating Corrective Ac-
tives gramme target
tions
Invest in economic Investigate the Jun 2009 Submission was No data available No data available Subject to the ap-
infrastructure and a expansion of mu- made to DoT for proval of the budget
transport system that nicipal bus services permits for new required for the
promotes greater to the northern/ identified routes extra resources and
efficiency regard- southern region of and services will be personnel required
ing logistics, and Tshwane commissioned after to expand to these
optimise productivity obtaining permits routes
of human capital by
reducing travelling
time between home
and work
Facilitate the Numner of new 300 by 2011 0 100 Awaiting finalisa- Supplier has been
provision of new buses provided for tion of the Finance appointed. Bus de-
buses for the public the public transport Agreements by the livery three months
transport system system CFO where after behind schedule but
delivery will take steps put in place to
place of the first rectify this. End de-
consignment of livery time remains
buses unchanged.

City of Tshwane Annual Report 2008/2009 //

CHAPTER FIVE: Functional Statistics Analysis

pg 385

2009/06/04 09:36:53 AM
 Comments/
Activities/ Initia- Five-year pro-
KPA KPI Actual 2006/07 Target 2007/08 Actual 2007/08 Rating Corrective Ac-

Annual Report v2.indd 386

tives gramme target
tions

pg 386
Introduction of a June 2009 Framework com- Tender not approved

//
Fleet Management pleted, having three for advertisement by
System phases. The first Tender Specification
phase is in the pro- Committee, To be
cess of implementa- split from Electronic
tion and evaluation Fare Collection
tender. With the
envisaged recapi-
talisation of the Bus
Fleet this will be
addressed as part of
the procurement of
the new vehicles
Sustainability man- Review the organi- Type of municipal Comparison of No data available Complete a section Was done but this This must be revised

City of Tshwane Annual Report 2008/2009

agement sational structure to entities established expenditure before 78(1) investigation did not include the to include the
meet the needs and and after implemen- needs of those com- requirements for
goals of a separate tation of alternate munities which do expansion to these
CHAPTER FIVE: Functional Statistics Analysis

entity service delivery not currently benefit areas

mechanisms shows from a public trans-
savings by 2011 port service.
Prudent financial Ensure departmental No incidences of No data available No data available No data available R36 820 000 A system was put
management compliance with fruitless and wasteful in place to monitor
legislation and no expenditure and the monthly deviations
audit qualifications R value thereof
Sound HR manage- Manage employee % of employee No data available No data available 90% 97% Target achieved
ment grievances grievances finalised
Train employees Number of employ- No data available No data available No data available 52
according to the ees trained
departmental skills
development plan

2009/06/04 09:36:57 AM
 CHAPTER FIVE: Functional Statistics Analysis

5.4.11 Roads and Stormwater

(a) Overview and description of key issues

The planning, provision and maintenance of roads, stormwater and traffic signalling infrastruc-
ture are the responsibility of the Roads and Stormwater Division of the Municipality’s Public
Works and Infrastructure Development Department. The Roads and Stormwater Division com-
prises the following sections:

Infrastructure Planning and Management

Responsible for the planning and management of the roads and stormwater infrastructure of the
City of Tshwane Metropolitan Municipality

Infrastructure Provision
Providing a roads and stormwater infrastructure to support and facilitate economic growth.

Infrastructure Maintenance Management

Keep the roads and stormwater infrastructure maintainable and serviceable through proper man-
agement systems.

Traffic Engineering and Operations

Responsible for the optimisation of traffic control systems to improve traffic flow and to alleviate
traffic congestion and improve safety.

Project Management
Project management of projects

Operational Services
Operational construction and maintenance of road stormwater systems and traffic control sys-
tems.

Divisional Support
The rendering of generic support services for human resource management, financial manage-
ment and generic support services.

To render a management support function in relation to business planning, performance man-

agement and monitoring and risk management.

City of Tshwane Annual Report 2008/2009 // pg 387

Annual Report v2.indd 387 2009/06/04 09:37:01 AM

 CHAPTER FIVE: Functional Statistics Analysis

Strategic objectives
The strategic objectives of the Roads and Stormwater Division are to –

• plan for and provide roads and stormwater infrastructure to support and facilitate economic
growth and to promote social development;
• keep roads and stormwater infrastructure maintainable and serviceable;
• promote traffic safety;
• optimise traffic control systems to improve traffic flow;
• alleviate traffic congestion; and
• provide the management and support services needed.

The following were the key issues for the 2007/08 financial year:

• Eradication of infrastructure backlogs

• Provide infrastructure for growth
• Maintain existing infrastructure
• Optimise the use of local labour in labour intensive initiatives
• Provide new infrastructure in local economic nodes that meet the growth demands
• Optimise the implementation of contracts through EPWP guidelines and learnerships
• Optimise the use of local vendors
• Optimise the creation of short-term jobs in the execution of construction and maintenance
works
• Provide and maintain infrastructure and traffic/pedestrian safety measures that will ensure
the safety of our roads environment
• Foster participatory governance and Batho Pele principles through caring, accessible and
accountable services
• Ensure good governance by addressing all audit findings
• Apply prudent financial management principles and procedures
• Apply risk management principles that are in line with international best practice, norms and
standards
• Apply sound human resource management practices
• Ensure that responsiveness to client needs are effective and on time
• Apply integrated performance management principles and reporting
• Strive for the achievement of employment equity targets
• Maintain, update and implement the divisional workplace skills plans

pg 388 // City of Tshwane Annual Report 2008/2009

Annual Report v2.indd 388 2009/06/04 09:37:06 AM

 CHAPTER FIVE: Functional Statistics Analysis

(b) Analysis of the function

Details 2006/07 2007/08

Number and cost to employer of

all personnel associated with road No R No R
maintenance and construction:
- Professional workers 183 173
(engineers/consultants)
- Fieldworkers (supervisors/foremen) 212 206
- Office workers (clerical/administration) 84 78
R150 544 000 R158 902 680
- Non-professional workers 463 438
(blue collar, outside workforce)
- Temporary workers 1 5
- Contract workers 0 0
Note: total number to be calculated on 954 R162 078 953 900 R158 902 680
full-time equivalent (FTE) basis, total cost to
include total salary package

City of Tshwane Annual Report 2008/2009 // pg 389

Annual Report v2.indd 389 2009/06/04 09:37:09 AM

 (c) Statistical iInformation

Annual Report v2.indd 390

pg 390
Statistical Information 2006/07 2007/08

//
Total number, kilometres and total 34 R101,6 M 79.1 R378 285
value of road projects planned and
current:
Upgrading of roads (number) 8 R23,84 M 36.8 R11 705
New collector and access roads 26 R77,76 M 42.3 R366 580
(number)
Feasibility studies and/or detailed 8 R6,5 M 27.1 R27 500
designs of roads (number)
- New bituminised (km) (Intermediate 26,7 R6,400 32.5 No data available
standard)
- Existing resurfaced (km) 166,8 R35,028 207.3 No data available

City of Tshwane Annual Report 2008/2009

- New gravel (km) 106,8 R16,020 281.55 No data available
Total kilometres and maintenance cost R (000s)
associated with existing roads provided
CHAPTER FIVE: Functional Statistics Analysis

- Tar (km) 5,536 R23,800 5,621 No data available

- Block pavement (km) 69 69
- Concrete and other types of surfaces 18 21
(km)
- Gravel (km) 2,240 R11,700 2,210 No data available
-Road markings repainted (in kilo- 277km R5,17M 958.03 No data available
metres)
-Traffic signs replaced/ installed (num- 12606 R7,38M 36,862 No data available
ber of signs)
Average frequency and cost of re- R (000s)
tarring, re-sheeting roads
- Surfaced 1:30 years R210,000/km 1:30 years No data available
- Gravel 1:20 years R150,000/km 1:20 years No data available
Note: based on maintenance records No data available

2009/06/04 09:37:14 AM
 Statistical Information 2006/07 2007/08

Annual Report v2.indd 391

Estimated backlog in number of roads, R (000s)
showing kilometres and capital cost
- From substandard to surfaced roads 2,265 R7,000,000 2 200 R 5,500,000
(km)
- From substandard to gravel roads 1,720 (Length of gravel roads not on R 300,000 250 R 4 500
(km) 10 year construction programme)
Total: 2 759 km (Total backlog deter- R7,300,000 2 450 R5 504 500
mined by ITS in project prioritisa-
tion project)
Detail Total Cost

Note: total number should appear in IDP, and cost in future budgeted road construction programme

Type and number of grants and subsi- No R (000s) No R (000s)

dies received:
MIG 10 (budget R58,000,000) R50,626,000 10 projects R79 463,35
Spent
• Consolidated Municipal 25 R58 million Nil
Infrastructure Programme
• Gauteng Department of Public projects
Transport, Roads and Works
(Gautrans) 0 projects 1 project
• South African National Roads 0 projects Nil R nil spent
Agency
• Public Transport Infrastructure and None 9 Projects R10,603,832
Systems Fund (PTIF) Conditional
Grant from Department of Transport
• Public Works Department 1 project 1 Project R4,139,617
• Restructuring Grant Fund None R0,7 million 10 Projects R89,219,077
Total operating cost of the road R 256 million R211,2 M
construction and maintenance
function (operational teams,

City of Tshwane Annual Report 2008/2009 //

depots, vehicles, machinery and
CHAPTER FIVE: Functional Statistics Analysis

equipment of the Operational

Services Section)

pg 391
Total operating cost of road con- Total Opex and Capex expenditure Opex: R421,423 Total Opex and Capex expenditure Opex: R475,571 M
struction and maintenance function Capex: R251,795 Capex: R443,347 M
Total R673,218 Total R918 918 M

2009/06/04 09:37:19 AM
 (d) Key performance areas

Annual Report v2.indd 392

Comments/
Activities/ Initia- Five-year pro-

pg 392
KPA KPI Actual 2006/07 Target 2007/08 Actual 2007/08 Rating Corrective Ac-
tives gramme target
tions

//
Reduce/ eradicate Upgrade roads to Length of roads (km) 213,10 km 40,5 km 39,6 km ( IDP 1st 77,5 km The approved 5
the backlog for reduce backlogs upgraded to reduce revision) year target was to
roads by sealing and the backlogs (in km) reduce the (value of)
construction 71,1 km (SDBIP) roads and stormwa-
ter backlogs by 14%
in 2011. The 213,1
km is the total target
for each of the five
years from 2006/07
to 2010/11. The
backlog as estimat-
ed at the start of the

City of Tshwane Annual Report 2008/2009

2007/08 financial
year was 2357 km
(see SDBIP 111
CHAPTER FIVE: Functional Statistics Analysis

2007/08)
Build new storm- Length of open 178,7 km 15,9 km 30,7 km 53,7 km
water systems to stormwater drainage
eradicate backlogs systems constructed
Length of closed Included in the 23,8 km 58,2 km 36,1 km The EIA approval
stormwater drainage 178,7 km above for a number of
systems constructed projects to reduce
flooding backlogs
took longer than an-
ticipated, with quite
a few still outstand-
ing at the end of the
financial year.
Build new roads Construct new roads Length of roads (km) 70 km 37,5 km 21,8 km 51,7 km Target achieved
to provide for the provided to manage
growth in the city the growth in the city

2009/06/04 09:37:23 AM
Annual Report v2.indd 393
Comments/
Activities/ Initia- Five-year pro-
KPA KPI Actual 2006/07 Target 2007/08 Actual 2007/08 Rating Corrective Ac-
tives gramme target
tions
Total length of roads Included in the 70 1,3 km 2,2 km 1,6 km Unexpected delays
upgraded to man- km above occurred on the
age the growth Simon Vermooten
Road Project
Km of class 4 and 5 Included in the 70 36,2 km 19,6 km 49,5 km The length of Class
roads provided in km 4 road taken over
formal (proclaimed) from private devel-
areas per service opers was not con-
level agreements to sistently measured
manage the growth during 2007/08.
The lengths for
2006/07 and
2007/08 are for
all classes of roads
taken over from
private developers
Construct new Length of new 28 km 34,6 km 19,7 km 35,0 km Target exceeded
stormwater drainage stormwater drainage
systems systems provided
Continuously repair Length of Roads 2 018,1 km 4 240,6 km 2 541,5 km 2 929,7 km Target exceeded
and maintain exist- maintained
ing roads infrastruc-
ture
Number of bridges 63 12 14 26 Target exceeded

City of Tshwane Annual Report 2008/2009 //

rehabilitated and
CHAPTER FIVE: Functional Statistics Analysis

maintained
Number of traffic 18 348 3 543 3 860 5 390 Target exceeded

pg 393
signals upgraded
and maintained

2009/06/04 09:37:28 AM
111
Service Delivery and Budget Implementation Plan
 Comments/
Activities/ Initia- Five-year pro-

Annual Report v2.indd 394

KPA KPI Actual 2006/07 Target 2007/08 Actual 2007/08 Rating Corrective Ac-
tives gramme target
tions

pg 394
Length of stormwa- 34,33 km 14,8 km 11,6 km 13,5 km Target exceeded

//
ter drainage systems
maintained
Number of catch Not included in the 38 526 34 825 37 818 Target exceeded
pits repaired or five-year pro-
cleaned gramme - only in
the SDBIP
R spent on infra- Not Included in the R93 612 151 R114 356 003 R110 617 090 These are the direct
structure mainte- five-year pro- costs for RandM of
nance (Opex) gramme – all RandSW infra-
structure
R spent on opera- Not Included in the R98 334 624 R85 737 204 R100 582 348 These figures are
tional maintenance five-year pro- the internal costs

City of Tshwane Annual Report 2008/2009

gramme - only in of labour, vehicles,
the SDBIP equipment, machin-
ery and materials
CHAPTER FIVE: Functional Statistics Analysis

related to the main-

tenance operational
teams.
Support and de- Give preference Percentage of local 80% 74,8% 75% 77,2% The conditions of
velop SMME’s and to local vendors to vendors used for contracts are stating
cooperatives provide non-spe- non-specialised clearly that all la-
cialised service services bour to be supplied
by the contractor
must be local
Support job creation Create temporary The number of jobs 3 064 832 1 045 1 385 The City of Tshwane
through labour (short-term jobs) in created through the standard is that 1
intensive projects the implementation Municipality’s LED short-term job =
and EPWP of capital projects initiatives, includ- 240 person days
ing capital projects
(NKPI)

2009/06/04 09:37:32 AM
Annual Report v2.indd 395
Comments/
Activities/ Initia- Five-year pro-
KPA KPI Actual 2006/07 Target 2007/08 Actual 2007/08 Rating Corrective Ac-
tives gramme target
tions
No of contracts 269 37, of which 12 59, of which 24 had 50, of which 12 The target for learn-
implemented were learner- ship to be learner -ship were learner -ship ership contractors
through EPWP contractors contractors contractors are dependent on
external funding by
the SETA, and could
therefore not be
reached.
Ensure the safety Increase pedestrian Length of walkways Not included in the 12,6 km 70,2 km 38,8 km The underachieve-
of our communi- safety constructed (includ- five-year plan – ment in 2007/08
ties, businesses ing cycle tracks) SDBIP indicator was due to the short
and roads through time frame allocated
fostering a culture of for the ward-based
respect for the rights project; shortage of
of all, the laws that concrete material
govern us all and for walkways (lower
a high moral and supply rate than
ethical standard anticipated); an
unprotected strike by
council employees
which caused delays
and damages to
some of the walkway
routes
Construct road Number of speed Provide 551 speed 277 103 228 Target exceeded

City of Tshwane Annual Report 2008/2009 //

safety devices humps, raised humps, raised
CHAPTER FIVE: Functional Statistics Analysis

pedestrian crossings pedestrian crossings

and related safety and related safety

pg 395
devices provided devices by 30 June
2010

2009/06/04 09:37:36 AM
 Comments/
Activities/ Initia- Five-year pro-
KPA KPI Actual 2006/07 Target 2007/08 Actual 2007/08 Rating Corrective Ac-

Annual Report v2.indd 396

tives gramme target
tions

pg 396
Respond to cus- Manage response % compliance with Reaction time of two 83.8% 85% reaction time 95%

//
tomer complaints times to customer turnaround times for days due to danger- of two days due to
requests and en- service provision to ous road- user situa- dangerous road-
quiries customers tions not included user situations
in the five-year
programme; five-
year programme
target is: All service
delivery areas to
comply with Batho
Pele norms and
standards
Prudent financial Spend capital % of a Municipal- 99% by the year 85.8% 97% 79.8% A significant number

City of Tshwane Annual Report 2008/2009

management budget ity’s capital budget 2010/11 of stormwater
actually spent on related projects
capital projects experienced long
CHAPTER FIVE: Functional Statistics Analysis

identified for a par- delays due to the

ticular year as per long time it took to
the IDP (NKPI) obtain EIA approval.
Procurement for a
number of large
projects (eg the
Soshanguve project)
also took longer
than planned.
Remuneration as a% 28% by year five 35,3% 29,6% 33,4% Target exceeded
of the total adjusted
operating budget

2009/06/04 09:37:41 AM
Annual Report v2.indd 397
Comments/
Activities/ Initia- Five-year pro-
KPA KPI Actual 2006/07 Target 2007/08 Actual 2007/08 Rating Corrective Ac-
tives gramme target
tions
Skills development Train employees Number of employ- Not included 212 No target set in 244 Target exceeded
according to the ees trained in the five-year Divisional Business
departmental skills programme – only Plan
development plan SDBIP
Performance man- Manage employee % of employee Not included 100% 100% 100% Target exceeded
agement grievances grievances finalised in the five-year
programme at
divisional level
Manage employee No of employees Not included 10 0 8 Target exceeded
discipline disciplined accord- in the five-year
ing to the disciplin- programme at
ary procedure divisional level
Cascade scorecards Levels to which All 3 4 2 Not all the manag-
down to all organi- individual perfor- ers and deputy
sational levels mance management managers reported
is cascaded in accordance with
the scorecards.

No scorecard was
signed.
Risk management Reduce controllable Reduce controllable 2% per annum -34% -5% -63%
insurance claims insurance claims by
2% per annum

City of Tshwane Annual Report 2008/2009 //

CHAPTER FIVE: Functional Statistics Analysis

pg 397

2009/06/04 09:37:45 AM
 (e) Progress with project implementation

Annual Report v2.indd 398

Project R at start of Adjustments R spent end

pg 398
KPA PROJECT NAME Fund Ward
number financial year budget June 2008

//
Provide infrastructure for growth Contributions: Services for Township Develop- 710115 1 15,000,000 28,000,000 22,199,567 Tshwane wide
ment
Ensure the safety of our communities, Replacement of Traffic Signs 710221 1 3,675,000 14,675,000 14,662,323 Tshwane wide
businesses and roads
Infrastructure Maintenance Rehabilitation of Bridges 710223 1 1,575,000 1,575,000 1,487,698 Tshwane wide
Infrastructure Maintenance Essential and Unforeseen Road Improvements 710226 1 1,200,000 2,700,000 1,426,700 Tshwane wide
Ensure the safety of our communities, Parking Bays at Schools 710227 1 800,000 800,000 529,627 Tshwane wide
businesses and roads
Ensure the safety of our communities, Cycle and Pedestrian Paths for Tshwane 710228 1 3,000,000 917,125 916,753 Tshwane wide
businesses and roads
Ensure the safety of our communities, Cycle and Pedestrian Paths for Tshwane 710228 3 No data available 2,082,741 2,082,741 Tshwane wide

City of Tshwane Annual Report 2008/2009

businesses and roads
Ensure the safety of our communities, Traffic Calming and Pedestrian Safety for 710229 1 4,000,000 3,124,625 2,162,761 Tshwane wide
businesses and roads Tshwane
CHAPTER FIVE: Functional Statistics Analysis

Ensure the safety of our communities, Traffic Calming and Pedestrian Safety for 710229 3 No data available 1,375,375 1,375,375 Tshwane wide
businesses and roads Tshwane
Infrastructure to accelerate economic Establish Road Reserves for Main Routes 710257 1 200,000 200,000 0 Tshwane wide
growth
Infrastructure to accelerate economic Upgrading of Roads in Marabastad 710259 1 No data available 4,650 4,650 3
growth
Infrastructure to accelerate economic Upgrading of Roads in Marabastad 710259 5 4,000,000 4,000,000 3,316,766 3
growth
Ensure the safety of our communities, Traffic Lights/Traffic Signal System 710395 1 1,500,000 1,500,000 1,262,422 Tshwane wide
businesses and roads
Ensure the safety of our communities, Traffic Signals to Meet Legal Requirements 710398 1 2,500,000 2,500,000 2,280,268 Tshwane wide
businesses and roads
Infrastructure maintenance Extension of Atcon Traffic Control System 710399 1 1,000,000 1,000,000 742,079 Tshwane wide
Infrastructure maintenance Implement Real Time Traffic Control Pilot 710402 1 1,000,000 10,000 No data available Tshwane wide
Project

2009/06/04 09:37:49 AM
Annual Report v2.indd 399
Project R at start of Adjustments R spent end
KPA PROJECT NAME Fund Ward
number financial year budget June 2008
Eradication of backlogs Matenteng Main Transport Route, Stinkwater 710597 5 8,500,000 10,100,000 9,139,738 14
Ensure the safety of our communities, Shova Kalula Bicycle Project 710609 1 300,000 300,000 297,618 51,62,63
businesses and roads
Ensure the safety of our communities, Shova Kalula Bicycle Project 710609 3 700,000 No data avail- No data available 51,62,63
businesses and roads able
Eradication of Backlogs Major Collector Road: Soshanguve Block DD/ 710901 1 2,100,000 2,100,000 682,594 26,33
CC
Infrastructure maintenance Rehabilitation of Roads 710902 1 31,325,000 30,744,925 30,475,632 N East, N West, Rest of
Tshwane
Infrastructure maintenance Rehabilitation of Roads 710902 3 No data available 27,775,425 27,775,425 N East, N West, Rest of
Tshwane
Infrastructure for growth Doubling of Church Street over the Railway 710928 1 100,000 400,000 277,463 56
Line
Eradication of backlogs Real Rover Road to Serapeng Road 710936 1 16,000,000 3,680,671 918,588 18, 4
Eradication of backlogs Real Rover Road to Serapeng Road 710936 3 No data available 10,869,329 10,869,328 18, 4
Eradication of backlogs Access Road to Mamelodi X18 (K54) 710937 1 1,100,000 2,000,000 160,417 10
Eradication of backlogs Access Road to Mamelodi X18 (K54) 710937 5 No data available No data avail- No data available 10
able
Infrastructure for growth Doubling of Lynnwood Road 710939 1 35,000,000 8,836,125 8,515,040 40,44,46
Infrastructure for growth Doubling of Lynnwood Road 710939 3 0 No data avail- 12,163,875 12,163,875 40,44,46
able
Infrastructure for growth Doubling of Simon Vermooten 711800 1 9,000,000 25,000,000 17,517,195 40,41,43
Infrastructure for growth Doubling of Simon Vermooten 711800 3 10,000,000 No data avail- No data available 40,41,43
able
Eradication of backlogs Internal Roads: Northern Areas 711863 1 5,453,000 21,653,000 20,815,550 62,6,73,34,19,29,21,13

City of Tshwane Annual Report 2008/2009 //

Eradication of backlogs Internal Roads: Northern Areas 711863 5 26,105,000 27,905,000 27,902,985 62,6,73,34,19,29,21,13
Eradication of backlogs Formalise and Align New Access to Odenburg 712253 1 25,000 25,000 No data available 22
CHAPTER FIVE: Functional Statistics Analysis

Gardens

pg 399
Eradication of backlogs Formalise and Align New Access to Odenburg 712253 5 325,000 325,000 No data available 22
Gardens

2009/06/04 09:37:53 AM
 Project R at start of Adjustments R spent end
KPA PROJECT NAME Fund Ward

Annual Report v2.indd 400

number financial year budget June 2008

pg 400
Ensure the safety of our communities, Traffic Flow and Safety on Corridors 712501 1 1,500,000 1,500,000 1,378,132 Tshwane wide

//
businesses and roads
Ensure the safety of our communities, Traffic Flow and Safety on Corridors 712501 3 No data available 200,000 No data available Tshwane wide
businesses and roads
Ensure the safety of our communities, Traffic Flow Improvement at Intersections 712502 1 2,000,000 2,000,000 1,499,499 Tshwane wide
businesses and roads
Eradication of backlogs Collector Road Backlogs: Mamelodi 712521 1 3,500,000 1,120,000 538,846 6,10,15,16,17,18,23,
28,38,67,Part of 40
Eradication of backlogs Collector Road Backlogs: Atteridgeville 712522 1 3,000,000 1,000,000 724,738 Part of
7,51,62,63,68,71,72
Eradication of backlogs Loftus: Upgrading of Charles Street 712537 3 6,000,000 5,000,000 3,016,996 56
Ensure the safety of our communities, Hatfield: Upgrading of Pretorius Street 712538 3 7,000,000 5,400,000 616,857 56
businesses and roads

City of Tshwane Annual Report 2008/2009

Infrastructure to accelerate economic Hatfield: Upgrading of Schoeman Street 712539 3 7,000,000 5,400,000 760,761 56
growth
CHAPTER FIVE: Functional Statistics Analysis

Infrastructure to accelerate economic Hatfield: Upgrading of Duncan/Gordon Street 712540 3 5,000,000 1,600,000 891,934 56
growth
Infrastructure to accelerate economic Hatfield One-Way System 712541 3 1,000,000 1,600,000 908,560 56
growth
Infrastructure to accelerate economic Upgrading of Maunde 712544 1 2,000,000 No data avail- No data available 3,51,62
growth able
Infrastructure to accelerate economic Upgrading of Maunde 712544 3 10,000,000 5,200,000 1,537,780 3,51,62
growth
Infrastructure to accelerate economic Giant Stadium: Buitekant Str 712545 1 2,000,000 No data avail- No data available 33
growth able
Infrastructure to accelerate economic Giant Stadium: Buitekant Str 712545 3 3,000,000 3,000,000 692,095 33
growth
Infrastructure to accelerate economic Wonderboom Airport Access: Lindveldt Avenue 712546 3 10,000,000 7,000,000 1,128,651 50
growth
Infrastructure to accelerate economic Catalytic Project: G9 Western Bypass 712604 1 No data available No data avail- No data available 55,7,3
growth able

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Annual Report v2.indd 401
Project R at start of Adjustments R spent end
KPA PROJECT NAME Fund Ward
number financial year budget June 2008
Infrastructure to accelerate economic K69 Between Waterkloof Air Force Base and 712547 3 15,000,000 1,300,000 1,050,198 59,42,46
growth R21
Eradication of backlogs Upgrading of Roads and Appurtenant Storm- 712605 1 43,515,000 11,683,361 6,478,738 11, 12, 25, 26, 27, 29,
water Systems in Soshanguve 33, 34, 35, 36
Eradication of backlogs Upgrading of Roads and Appurtenant Storm- 712605 5 9,900,000 9,900,000 9,899,999 11, 12, 25, 26, 27, 29,
water Systems in Soshanguve 33, 34, 35, 36
Eradication of backlogs Upgrading of Roads and Appurtenant Storm- 712666 3 90,000,000 26,416,639 26,324,505 11, 12, 25, 26, 27, 29,
water Systems in Soshanguve (RG) 33, 34, 35, 36
Infrastructure to accelerate economic Upgrading of Lavender Road (Southern Portion 712610 1 21,500,000 14,000,000 6,108,400 49;50
growth of K97)
Eradication of backlogs Upgrading of Mabopane Roads (Red Soils) 712611 1 10,000,000 10,000,000 9,754,287 19,20,21
Eradication of backlogs Upgrading of Sibande Street, Mamelodi 712612 1 500,000 100,000 No data available 6,23
Infrastructure to accelerate economic Counter funding for 2010 Projects 712613 1 16,400,000 8,900,000 7,424,182 3,33,42,46,51,56,59,62
growth
Eradication of backlogs Ward-Based Project: Roads and Stormwater 712616 1 7,500,000 5,530,000 5,349,995 8,9,12,14,19,20,
21,22,24,30,31,3
2,40 (Nellmapius
part),43,48,73,74,75,76
Eradication of backlogs Essential/Unforeseen Stormwater Drainage 710116 1 5,000,000 7,100,000 6,602,740 Tshwane wide
Problems
Eradication of backlogs Apies River: Canal Upgrading, Pretoria Central 710117 1 550,000 550,000 539,521 Tshwane wide
Eradication of backlogs S/W Box Culvert Under Railway Line, H/Skraal 710127 1 3,800,000 6,300,000 1,089,238 74
Eradication of backlogs Concrete Canal: Sam Malema Road, Win- 710128 1 3,000,000 3,000,000 2,264,170 9
terveld
Eradication of backlogs Major Stormwater System, Mamelodi X 8 710129 1 925,000 925,000 393,890 17
Eradication of backlogs Stormwater System in Eersterust X 2 710139 1 5,000,000 3,200,000 3,182,803 43
Eradication of backlogs Major Stormwater Systems: Klip-Kruisfontein 710143 1 4,000,000 5,000,000 3,952,406 37;39

City of Tshwane Annual Report 2008/2009 //

Eradication of backlogs Rehabilitation of Stormwater Systems and 710220 1 6,000,000 36,000,000 35,678,839 Tshwane wide
Sidewalks
CHAPTER FIVE: Functional Statistics Analysis

Eradication of backlogs Rehabilitation of Stormwater Systems and 710220 5 10,000,000 10,000,000 9,999,999 Tshwane wide

pg 401
Sidewalks
Eradication of backlogs Block W - Stormwater Drainage 711164 1 2,700,000 200,000 No data available 25

2009/06/04 09:38:02 AM
 Project R at start of Adjustments R spent end
KPA PROJECT NAME Fund Ward

Annual Report v2.indd 402

number financial year budget June 2008

pg 402
Eradication of backlogs Block W - Stormwater Drainage 711164 5 3,100,000 6,200,000 4,659,681 25

//
Eradication of backlogs Stormwater Drainage Mahube Valley 711213 1 2,000,000 2,000,000 906,699 17
Eradication of backlogs Stormwater Drainage Mahube Valley 711213 5 1,200,000 2,700,000 2,682,244 17
Eradication of backlogs Magriet Monamodi Stormwater System 711262 1 3,000,000 3,272,210 2,659,792 73
Eradication of backlogs Magriet Monamodi Stormwater System 711262 3 0 2,227,790 2,227,790 73
Ensure the safety of our communities, Major S/Water Drainage System: Cambridge 711263 1 1,000,000 3,000,000 2,219,499 66
businesses and roads Road
Eradication of backlogs Major S/ Water Drainage System: Matenteng 711264 1 5,000,000 5,000,000 611,225 14
Eradication of backlogs Major S/ Water Drainage System: Matenteng 711264 3 0 No data avail- No data available 14
able
Ensure the safety of our communities, Hartebeest Spruit: Canal Upgrading 711265 1 100,000 100,000 23,882 42
businesses and roads

City of Tshwane Annual Report 2008/2009

Ensure the safety of our communities, Moreleta Spruit: Flood Structure 711267 1 4,000,000 2,200,000 568,001 45, 47
businesses and roads
Ensure the safety of our communities, Montana Spruit: Channel Improvements 711268 1 7,000,000 1,500,000 704,369 5
CHAPTER FIVE: Functional Statistics Analysis

businesses and roads

Ensure the safety of our communities, Stormwater Box Culvert: Meadow Ave 711269 1 3,500,000 3,500,000 3,141,948 40
businesses and roads
Ensure the safety of our communities, Stormwater Culvert Underneath N1 Freeway 711270 1 4,700,000 3,242,244 1,648,875 64
businesses and roads
Ensure the safety of our communities, Stormwater Culvert Underneath N1 Freeway 711270 3 No data available 1,957,756 1,957,755 64
businesses and roads
Ensure the safety of our communities, Major S/Water Drainage System: Majaneng 711273 1 7,000,000 7,000,000 6,309,788 76
businesses and roads
Eradication of backlogs Major S/Water Drainage System: Majaneng 711273 5 No data available No data avail- No data available 76
able
Ensure the safety of our communities, Major S/Water Canal Hennopspark 711275 1 2,000,000 2,000,000 860,387 69
businesses and roads
Eradication of backlogs Major S/Water Drainage Channels: Ga- 711284 5 8,000,000 8,000,000 6,527,984 30,31,32
Rankuwa

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Annual Report v2.indd 403
Project R at start of Adjustments R spent end
KPA PROJECT NAME Fund Ward
number financial year budget June 2008
Eradication of backlogs Stormwater Drainage Systems in Ga-Rankuwa 711285 5 4,000,000 4,000,000 3,955,596 30
View
Infrastructure for growth Olievenhoutbosch Activity Spine 711325 1 6,000,000 6,000,000 5,981,489 64, 65
Infrastructure for growth Doubling of Simon Vermooten 711800 1 9,000,000 25,000,000 17,517,195 40,41,43
Infrastructure for growth Doubling of Simon Vermooten 711800 3 10,000,000 No data avail- No data available 40,41,43
able
Eradication of backlogs Internal Roads: Northern Areas 711863 1 5,453,000 21,653,000 20,815,550 62,6,73,34,19,29,21,13
Eradication of backlogs Internal Roads: Northern Areas 711863 5 26,105,000 27,905,000 27,902,985 62,6,73,34,19,29,21,13
Infrastructure maintenance Centurion Lake and Kaal Spruit 712217 1 175,000 175,000 123,648 57,65,69
Eradication of backlogs Flooding Backlogs: Stinkwater and New 712219 1 722,000 722,000 No data available 8;13;14
Eersterust Area
Eradication of backlogs Flooding Backlogs: Stinkwater and New 712219 5 4,278,000 1,278,000 70,700 8;13;14
Eersterust Area
Eradication of backlogs Flooding Backlogs: Soshanguve and Win- 712220 1 No data available No data avail- No data available 9;11;12;22;24;25;26;27;
terveld Area able
29;33;34;35;36;49
Eradication of backlogs Flooding Backlogs: Soshanguve and Win- 712220 5 5,000,000 4,000,000 2,496,135 9;11;12;22;24;25;26;27;
terveld Area
29;33;34;35;36;49
Eradication of backlogs Flooding Backlogs: Mabopane Area 712221 1 4,000,000 8,036,968 7,617,153 19;20;21;22
Eradication of backlogs Flooding Backlogs: Mabopane Area 712221 3 No data available 2,463,032 2,463,031 19;20;21;22
Eradication of backlogs Flooding Backlogs: Mamelodi, Eersterust and 712223 1 2,000,000 2,000,000 83,394 6,10,15,16,17,18,
Pretoria Eastern Area
23,28,38,
40,41,43,44,45,46,
47,52,67

City of Tshwane Annual Report 2008/2009 //

Eradication of backlogs Flooding Backlog: Network 3, Kudube Unit 11 712503 1 No data available 75
CHAPTER FIVE: Functional Statistics Analysis

Eradication of backlogs Flooding Backlog: Network 2F, Kudube Unit 6 712504 1 No data available 75
Eradication of backlogs Flooding Backlog: Network 5A, Matenteng 712506 1 1,750,000 2,190,000 972,456 75

pg 403
Eradication of backlogs Flooding Backlog: Network 2H, Kudube Unit 7 712507 1 1,850,000 1,850,000 956,092 8

2009/06/04 09:38:10 AM
 Project R at start of Adjustments R spent end
KPA PROJECT NAME Fund Ward

Annual Report v2.indd 404

number financial year budget June 2008

pg 404
Eradication of backlogs Flooding Backlog: Network 1B, Suurman 712508 1 No data available No data avail- No data available 76

//
able
Eradication of backlogs Flooding Backlog: Network 1D, Suurman 712509 1 No data available No data avail- No data available 8
able
Eradication of backlogs Flooding Backlog: Network 1E, Suurman 712510 1 No data available No data avail- No data available 8
able
Eradication of backlogs Flooding Backlog: Network C5, C6, C11 and 712511 1 No data available No data avail- No data available 62
C13, Atteridgeville able
Eradication of backlogs Flooding Backlog: Network 5D, Mandela Vil- 712512 1 2,000,000 2,000,000 501,488 73
lage Unit 12
Eradication of backlogs Flooding Backlogs: Soshanguve South and 712513 1 3,400,000 3,400,000 3,392,196 2,4, Part of
Akasia Area 20,35,36,37,39
Eradication of backlogs Flooding Backlogs: Olievenhoutbosch and 712514 1 500,000 500,000 No data available 7, 57, 48, 61, 64, 65, 66,

City of Tshwane Annual Report 2008/2009

Centurion Area 69, 70
Eradication of backlogs Flooding Backlog: Network 2B, Ramotse 712515 1 2,500,000 500,000 No data available 73
CHAPTER FIVE: Functional Statistics Analysis

Eradication of backlogs Flooding Backlog: Network 2D, New Eerster- 712516 1 2,500,000 2,500,000 No data available 13
ust X 2
Eradication of backlogs Flooding Backlog: Drainage Canals along 712518 1 2,500,000 2,500,000 No data available 15;16
Hans Strydom Dr, Mamelodi X 4 and 5
Eradication of backlogs Flooding Backlog: Network 1A, 1C and 1F, 712520 1 No data available No data avail- No data available 73
Ramotse able
Eradication of backlogs Flooding Backlog: Network 1A, 1C and 1F, 712520 5 9,000,000 1,000,000 549,111 73
Ramotse
Eradication of backlogs Flooding Backlog: Network 3A, Kudube Unit 9 712523 1 3,600,000 1,600,000 363,988 74
Eradication of backlogs Waterkloof Air force Base SW Canal 712524 3 6,840,000 6,840,000 4,139,617 57, 59

2009/06/04 09:38:14 AM
 CHAPTER FIVE: Functional Statistics Analysis

5.4.12 Water

(a) Overview
The national government has set a number of targets for service delivery as part of its programme
to improve the lives of its citizens, and in particular the most impoverished communities. These
targets include eradication of backlogs for water and sanitation and the elimination of all infor-
mal settlements either through upgrading or resettlement in more favourable conditions.

(b) Description of activities and key Issues facing service delivery in the period under re-
view

The Water and Sanitation Division has a leading role to play in realising at least three of the main
strategic thrusts of the CDS.

It plays as critical a role in the execution of the strategic objectives of the current five-year plan
(IDP) which are:

1. Provide quality basic services and infrastructure

2. Accelerate higher and shared economic growth and development
3. Fight poverty, build clean, healthy, safe and sustainable communities
4. Foster participatory democracy and Batho Pele principles
5. Ensure good governance financial viability and optimal institutional transformation to ex-
ecute its mandate

It is critical to achieve these strategic objectives: it has the sole mandate on the first strategic
objective, while making a significant contribution to the economic and social objectives and
incorporating the remainder in its modus operandi.

(c) Analysis of the function

Number and cost to employer of all person- 2006/07 2007/08

nel associated with the water distribution
function: No R(000’s) No R (000s)

- Professional (engineers/consultants) 22 79 156,478,280

- Fieldworkers (supervisors/foremen) 17 168
- Office workers (clerical/administration) 15 51
- Non-professional workers (blue collar, outside 274 501
workforce)
- Temporary wokers (Opex) 4 153 <cost>
- Contract workers (Capex) 3 5 3,079,039
Note: total number to be calculated on full-time 335 957 159,557,319
equivalent (FTE) basis, total cost to include total salary
package.

City of Tshwane Annual Report 2008/2009 // pg 405

Annual Report v2.indd 405 2009/06/04 09:38:18 AM

 CHAPTER FIVE: Functional Statistics Analysis

(d) Statistical Information

Statistical information: 2006/07 2007/08

Total volume and cost of bulk

Mega litre R per Mega litre per R per Mega
water purchases in kilolitres and
per day Mega litre day litre
rand, by category of consumer

Total for all sources 771,84 R 2,94 per kℓ No data available No data available
- Category 1, Rand Water (Mega litre 574,314 R 2,940 495,64 Mℓ /d R3,069
per day)
- Category 2, Magalies Water 9,53 R3,000 See Temba and Roodeplaat
- Category 3, Rietvlei (internal source) 39 R 1,050 36,95 Mℓ /d R0,48
- Category 4, Fountains and boreholes 61,02 Mℓ /d R0,48
(internal source)
- Category 5, Temba (internal source) 47,39 R 2,936 47,33 Mℓ /d R3,069
- Category 6, Roodeplaat (internal 49,8 R 2,936 44,8 Mℓ /d R3,069
source)
Total volume and receipts for bulk No R(000’s) No R (000s)
water sales in kilolitres and rand, by
category of consumer:
All categories 197 692 R 1 047,000 685,74 Mℓ /d R1 850 891,73/
day
Total year-to-date water losses in No R(000’s) No R (000s)
kilolitres and rand
27,6% water losses of total volume 214,57 R1,700 203,18 Mega litre R1,758
supplied, ie 735,51 Mega litre per day Mega litre per day
(April 2008) per day
Number of households with water No R(000’s) No R (000s)
service, and type and cost of ser-
vice:
- Piped water inside dwelling 396,419 <cost> 15,863 R613,360
- Piped water inside yard <total> <cost> No data available No data available
- Piped water on community stand: 109,206 <cost> No data available No data available
distance < 200 m from dwelling (in-
cluding informal settlements)
- Piped water on community stand: 55 968 <cost> No data available No data available
distance > 200 m from dwelling (including
informal
areas)
Note: if other types of services are
available, please provide details
Number and cost of new connec- No R(000’s) No R (000s)
tions:
TOTAL 5,550 R12,000 6 186 R12,000
Number and cost of disconnections No R(000’s) No R (000s)
and reconnections:
Restricted supply 62,806 R17,800 74,910 R22 105
Reconnections 24,514 29,426
Number and total value of water No R(000’s) No R (000s)
projects planned and current:

pg 406 // City of Tshwane Annual Report 2008/2009

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 CHAPTER FIVE: Functional Statistics Analysis

Statistical information: 2006/07 2007/08

Total volume and cost of bulk

Mega litre R per Mega litre per R per Mega
water purchases in kilolitres and
per day Mega litre day litre
rand, by category of consumer

- Current (financial year after year 35 R335,000 49 331 235

reported on) (2007/08)
- Planned (future years) (2008/09) 24 R284,000 58 472 120
Note: provide total project and project 66 487 295
value as per initial or revised budget
Anticipated expansion of water No R(000’s) No R (000s)
service:
- Piped water inside dwelling 80,000 R30,000 No data available No data available
Note: provide total number of house- No data available No data available
holds anticipated to benefit and total
additional operating cost per year to
the Municipality
Estimated backlog in number (and No R(000’s) No R (000s)
cost to provide) water connection:
- Piped water inside dwelling 20 263 R263 000 15,863 R613,360
-Piped water inside yard No data No data No data available No data available
available available
-Piped water on community stand, No data No data No data available No data available
distance < 200 m from dwelling available available
TOTAL 20 263 112
15,863 R613,360
Note: total number should appear in No R(000’s) No R (000s)
IDP, and cost in future budgeted capital
housing programmes
Free basic service (FBS) provision: No R(000’s) No R (000s)
- Quantity (number of households 391,227 R138,800 34,656 R21,504
affected)
- Quantum (value to each household) 6 kℓ R172,12 6 kℓ R3,50
6 kiloliter per month at R2,936 per
kiloliter
Note: Provide details of how many 34,656 R365
households receive the FBS provision,
and the average value it means per
household. Describe in detail the level
of free basic services provided.
Type and number of grants and No R(000’s) No R (000s)
subsidies received:
Provincial grants 4 R 25,000 6 25 800
MIG 14 R79,200 20 79 200
Note: total value of specific water No R(000’s) No R (000s)
grants actually received during
year to be recorded over the five
quarters - Apr to Jun last year, Jul to
Sep, Oct to Dec, Jan to Mar, Apr to
Jun this year

112
The Water backlog was estimated at 28 869 per reviewed IDP 2006-2011 but is now 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

City of Tshwane Annual Report 2008/2009 // pg 407

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 CHAPTER FIVE: Functional Statistics Analysis

Statistical information: 2006/07 2007/08

Total volume and cost of bulk

Mega litre R per Mega litre per R per Mega
water purchases in kilolitres and
per day Mega litre day litre
rand, by category of consumer

Total repairs and maintenance: R97,8 million R197,725,458

(WandS) (including municipal entities)
- Total income (WandS) R1 456 million -R1,770,510,228
(including municipal entities)
- Total expenditure (WandS) R1 253 million R1,368,345,918
(including municipal entities)
- Surplus (WandS) R211million -R403,302,704
(including municipal entities
Total operating cost (WandS): R97,800 R1,368,345,918
(excluding municipal entities)

pg 408 // City of Tshwane Annual Report 2008/2009

Annual Report v2.indd 408 2009/06/04 09:38:30 AM

Annual Report v2.indd 409
(e) Key performance areas

Activities/ Initia- Five-year pro- Achieved Comments/ Corrective

KPA KPI Target 2007/08 Actual 2007/08 Rating
tives gramme target 2006/07 Actions
Provide a con- Bulk-water networks Length of bulk-wa- Annual targets: 2 500 m 17 860 m 9 135 m Variance and delays due to:
tinuous sustainable terpipelines installed 2006/07: 2 500 • Delivery of pipes
water supply to meet (m) to support grow- 2007/08: 17 860 • Dispute amongst Joint Venture
Contractors
the growing demand ing demand (new) 2008/09: 10 070
• Legal and tender processes
2009/10: 3 180
• Natural causes, high ground water
2010/11: 3 300
levels, flooding, excessive rocks, tree
2011/12: 1 600
roots, poor soil conditions, etc.

Variance on targets will be installed in

the next financial years.

Internal networks Length of internal Annual targets: 5 762 m 16 500 m 30 024 m Target exceeded.
water network 2006/07: 5 762
pipelines installed 2007/08: 16 500
(m) (new) 2008/09: 35 800
2009/10: 10 200
2010/11: 5 500
2011/12: 9 780
Water purchases Mℓ/d of water 705 Mℓ /d 705 Mℓ /d 720 Mℓ /d 618 Mℓ /d The water consumption target is
purchased from based on estimates for a normal
external providers year. When the Mℓ purchased
is less than projected it could

City of Tshwane Annual Report 2008/2009 //

actually be a positive sign. This
CHAPTER FIVE: Functional Statistics Analysis

figure is indicative of an average

usage of 9kl per capita per

pg 409
month, purchased from external
providers.

2009/06/04 09:38:35 AM
 Activities/ Initia- Five-year pro- Achieved Comments/ Corrective
KPA KPI Target 2007/08 Actual 2007/08 Rating

Annual Report v2.indd 410

tives gramme target 2006/07 Actions

pg 410
Water from own Mℓ /d of water from Own sources are 95 Mℓ /d 95 Mℓ /d 99,08 Mℓ /d Own sources are already 100% used.
Severe droughts can influence the

//
sources own sources: (Riet- already used 100%
vlei, boreholes and production from Rietvlei and dolomite
fountains. No corrective actions can
fountains)
be taken – weather related. Average
usage of water per capita per month
is about 10.4kl of which the city
can only provide 13, 5% from own
sources.

Manage private ap- Number of private 5 000 5 480 5 480 5 488 Only estimates can be made on the
plications applications target according to figures from previ-
provided with water ous years. Private applications cannot
be controlled by this Division, based
connections per year
on application rate from private
(residential, business
applicants.
or industrial connec-

City of Tshwane Annual Report 2008/2009

tions)
Increase reservoir Mℓ reservoir capac- Annual targets: 1 651 Mℓ 0 Mℓ 0 Mℓ Project pre-planning and no actual
construction. Capacity increase of 18
CHAPTER FIVE: Functional Statistics Analysis

capacity to support ity increased to 2006/07: 30 Mℓ

demand growth support growing 2007/08: 0 Mℓ Mℓ planned for 2008/09.

demand 2008/09: 18 Mℓ
2009/10: 51 Mℓ
2010/11: 65 Mℓ
2011/12: 50 Mℓ
Eradicate the back- Connections No of households 2006/07: 942 942 5 624 11 168 Target exceeded.
log in formal areas with a below basic 2007/08: 5 624
(proclaimed areas) level of service pro- 2008/09: 16 813
with access to at vided with at least a
least a basic level of basic level of water
water service service
Maintain water pro- Water purification Mℓ/d water purified 36 Mℓ /d Rietvlei 36 Mℓ /d 35,88 Mℓ /d Dependant on demand
vision infrastructure 41,90 Mℓ/d
Temba
47,03 Mℓ/d
Roodeplaat
50,15 Mℓ/d

2009/06/04 09:38:40 AM
Annual Report v2.indd 411
Activities/ Initia- Five-year pro- Achieved Comments/ Corrective
KPA KPI Target 2007/08 Actual 2007/08 Rating
tives gramme target 2006/07 Actions
Repairs and Mainte- Water repairs and A minimum of 14% 13,21% 10,42% 11,31% Monthly/quarterly performance
nance budget maintenance to per annum dependant on various factors.
TOI (total operating
Done as and when required. A mini-
income for water)
mum of 14% per annum is required
to ensure networks are kept in good
condition.

R spent on opera- na R151 376 368 R145 811 311 R151 395 815 Monthly/quarterly performance
tional maintenance dependant on various factors. Done
(Opex) as and when required.

Maintain (upgrade) Metre bulk water Annual targets: 2 035 m 22 593 m 6 319 m Variance and delays due to:
bulk water pipelines pipelines upgraded 2006/07: 2 035 • Delivery of pipes
(capital) 2007/08: 16 500 • Dispute amongst Joint Venture
Contractors
2008/09: 12 063
• Legal and tender processes
2009/10: 3 628
• Natural causes, high ground water
2010/11: 150
levels, flooding, excessive rocks, tree
2011/12: 0
roots, poor soil conditions, etc.
• Variance on targets will be installed
in the next financial years

Maintain (upgrade) R spent on infra- R564 540 000 R109 822 000 R254 040 000 R246 984 206 Monthly/quarterly performance
infrastructure structure (upgrade dependant on various factors.
and replace) Project implementation as per Project
Management and Control (PMandC)
process to achievement of the annual
targets

Metre bulk water Annual targets: 0m 3 000 m 3 790 m Target exceeded.

pipelines replaced 2006/07: 0

City of Tshwane Annual Report 2008/2009 //

(capital) 2007/08: 3 000
CHAPTER FIVE: Functional Statistics Analysis

2008/09: 5 600
2009/10: 0

pg 411
2010/11: 5000
2011/12: 0

2009/06/04 09:38:44 AM
 Activities/ Initia- Five-year pro- Achieved Comments/ Corrective
KPA KPI Target 2007/08 Actual 2007/08 Rating

Annual Report v2.indd 412

tives gramme target 2006/07 Actions

pg 412
Internal water net- Metre internal Annual targets: 72 457 m 338 502 m 287 362 m Variance and delays due to:
• Delivery of pipes

//
work pipelines (m) network pipelines 2006/07: 72 457
upgraded (capital) upgraded (capital) 2007/08: 338 502 • Dispute amongst Joint Venture
Contractors
2008/09: 242 503
• Legal and tender processes
2009/10: 216 900
• Natural causes, high ground water
2010/11: 98 520
levels, flooding, excessive rocks, tree
2011/12: 115 380
roots, poor soil conditions, etc.
• Variance on targets will be installed
in the next financial years.

Support job creation EPWP contracts No of contracts 50 na 25 21 General conditions of contract

through labour implemented requirements according to the City of
intensive projects through EPWP Tshwane EPWP policy.

and EPWP
Give preference Percentage of local 100% 60% 70% Target achieved

City of Tshwane Annual Report 2008/2009

to local vendors to vendors used for
provide non-spe- non-specialised
cialised services services
CHAPTER FIVE: Functional Statistics Analysis

Entrench a Comply with Water quality to 6 000 tests/month 1 900 tests/month 1 900 tests/month 5825 tests/month Higher number of tests now being
customer-focused minimum water SANS 241 and (99,65%) done due to new instrumentation
approach to citi- services standards number of tests acquired which is able to monitor
more parameters and at a faster rate.
zenry and business as required by the performed
Increased monitoring on raw water
by setting standards Department of
sources due to increasing pollution.
that we achieve Water Affairs
Started monitoring of Temba WTW.
guided by the Batho
No E.Coli failures for June 08.
Pele principles
Manage response No of customer No annual target. Water: Severe pipe breakages on large di-
times to customer complaints received Complaints are Received: 7994 ameter pipes can take more than 48
requests and en- per function attended to as and Completed: 8052 hours to repair. Appropriate materials
and skilled staff should be available
quiries when received
to shorten the repair time on large
water leaks.

Sound HR manage- Train employees No of employees na 393 109 212 Target achieved
ment according to the trained
departmental skills
development plan

2009/06/04 09:38:49 AM
Annual Report v2.indd 413
Activities/ Initia- Five-year pro- Achieved Comments/ Corrective
KPA KPI Target 2007/08 Actual 2007/08 Rating
tives gramme target 2006/07 Actions
% of operational 0,002% R488 275 R396 242 R362 927 92% budgeted for workplace skills
budget spent on imple- plan was spent.
menting the workplace
skills plan

Manage employee % of employee griev- 100% 100% 50% 100% The division does not have control
grievances ances finalised over the occurrence of grievances
related to unsatisfactory working
conditions according officials.

Cascade scorecards Levels to which 5 5 5 5

down to all organi- individual perfor-
sational levels mance management is
cascaded

Implement and The number of people n/a 4 5 0 Moratorium placed on appointment

ensure EE from the employment of levels 5 and 4 due to the finalisa-
equity target groups tion of the ASD process.
employed in the three
highest levels of man-
agement in compliance
with the Municipality’s
approved employment
equity plan, short-term
employment, and
long-term employment.
(NKPI)

Risk management Reduce controllable Reduce controllable n/a 43 claims 105 – increased An increase of 36% on all insurance
insurance claims insurance claims by 2% with 36% claims in comparison with 2006/07

City of Tshwane Annual Report 2008/2009 //

per annum financial year.
% compliance with n/a 40% 40% 40% Target achieved
CHAPTER FIVE: Functional Statistics Analysis

principles of Gap
analasys by depart-

pg 413
ments

2009/06/04 09:38:53 AM
 (f) Progress with project implementation

Annual Report v2.indd 414

pg 414
R at start of finan- Adjustments R spent end June
KPA Project Name Project number Fund Ward

//
cial year budget 2008

Eradicate the backlog Township water services 710022 1 4,000,000 8,660,000 7,863,002 City wide
development: Tshwane
contributions
Provide a continuous Lengthening of network 710023 1 3,500,000 3,500,000 3,492,931 7, 27, 36, 42, 48, 59,
sustainable water sup- and supply pipelines 65, 66, 66, 101, 101,
ply to meet the growing 101, 101
demand
Provide a continuous Upgrading of networks 710024 1 1,300,000 1,300,000 1,298,684 2, 3, 7, 41, 42, 42,
sustainable water sup- where difficulties exist 46, 52, 55, 56, 56,
ply to meet the growing (Master Plan items) 56, 59, 66, 101, 101,
demand 101, 101, 101

City of Tshwane Annual Report 2008/2009

Implement job creation Water supply to agri- 710025 1 1,500,000 3,840,000 3,836,775 7, 7, 7, 49, 55, 101,
initiatives cultural holdings 101, 101
CHAPTER FIVE: Functional Statistics Analysis

Maintain water provi-

sion infrastructure
Replacement of worn- 710026 1 19,000,000 23,058,000 22,058,697 1, 1, 1, 3, 3, 3, 3, 5,
out network pipes 6, 7, 34, 36, 40, 41,
41, 42, 42, 45, 45,
46, 46, 49, 52, 52,
52, 55, 55, 56, 56,
56, 56, 57, 59, 59,
60, 60, 68, 101, 101,
101, 101
Maintain water provi- Water network upgrad- 710031 1 2,000,000 2,000,000 1,995,401 56, 56, 56, 56, 56,
sion infrastructure ing in Hatfield 56, 56, 58
Maintain water provi- Cathodic survey of 710039 1 1,000,000 350,000 173,782 3, 6, 28, 38, 38, 40,
sion infrastructure main pipelines 43, 50, 58, 59, 60,
65, 67, 67, 101

2009/06/04 09:38:57 AM
Annual Report v2.indd 415
R at start of finan- Adjustments R spent end June
KPA Project Name Project number Fund Ward
cial year budget 2008

Provide a continuous Installation of bulk 710054 1 100,000 100,000 98,722 4, 4, 6, 6, 26, 34, 35,
sustainable water sup- meters and loggers at 36, 36, 37, 41, 43,
ply to meet the growing reservoirs 46, 48, 52, 54, 55,
demand 56, 57, 57, 59, 60,
64, 65, 65, 65, 67,
67, 69, 70
Maintain water provi- Upgrading of pump 710307 1 400,000 400,000 400,000 45, 47, 47, 47, 59,
sion infrastructure stations 59, 59, 65
Maintain water provi- Soshanguve bulk pipe- 710308 5 700,000 2,700,000 2,700,000 19, 20, 26, 29, 33, 35
sion infrastructure line replacement
Maintain water provi- Soshanguve bulk pipe- 710308 1 45,300,000 36,050,000 35,961,553 19, 20, 26, 29, 33, 35
sion infrastructure line replacement
Eradicate the backlog Hammanskraal West 710383 5 6,000,000 6,000,000 5,999,999 74
bulk water pipeline
Provide a continuous Hammanskraal West 710383 1 7,300,000 6,154,500 5,042,903 74
sustainable water sup- bulk water pipeline
ply to meet the growing
demand
Maintain water provi- Upgrading water net- 710390 5 10,000,000 10,600,000 10,599,997 8, 76
sion infrastructure works: Greater Temba
Eradicate the backlog Upgrading water net- 710390 1 18,120,000 13,588,850 13,588,844 8, 76
works: Greater Temba
Maintain water provi-
sion infrastructure
Maintain water provi- Mabopane/Winterveld 710391 5 4,000,000 5,020,386 5,020,384 20, 21

City of Tshwane Annual Report 2008/2009 //

sion infrastructure water network refur-
bishment
CHAPTER FIVE: Functional Statistics Analysis

Maintain water provi- Mabopane/Winterveld 710391 1 1,000,000 6,000,000 1,820,683 20, 21

pg 415
sion infrastructure water network refur-
bishment

2009/06/04 09:39:01 AM
 R at start of finan- Adjustments R spent end June
KPA Project Name Project number Fund Ward

Annual Report v2.indd 416

cial year budget 2008

pg 416
Maintain water provi- Ga-Rankuwa water 710392 5 1,000,000 1,000,000 999,998 32

//
sion infrastructure networks refurbishment
Maintain water provi- Ga-Rankuwa water 710392 1 4,100,000 4,100,000 3,228,114 32
sion infrastructure networks refurbishment
Provide a continuous Telemetry of reservoirs 710555 1 500,000 345,000 342,013 4, 4, 5, 6, 26, 36, 37,
sustainable water sup- 37, 43, 47, 47, 55,
ply to meet the growing 61, 61, 61, 64, 66,
demand 67, 67, 69
Eradicate the backlog Refurbishment of water 710878 1 11,950,000 509,000 504,915 73, 74
networks and backlog
eradication
Eradicate the backlog Refurbishment of water 710878 5 6,500,000 7,320,614 6,874,146
networks and backlog

City of Tshwane Annual Report 2008/2009

eradication
Eradicate the backlog Refurbishment of water 710878 3 22,000,000 22,000,000 20,540,176
networks and backlog
CHAPTER FIVE: Functional Statistics Analysis

eradication
Maintain water provi- Mamelodi R5 Link to 711328 5 7,000,000 7,000,000 6,751,820 10, 17, 40
sion infrastructure Garsfontein - Phase 4
Maintain water provi- Mamelodi R5 Link to 711328 1 15,700,000 17,260,000 15,005,390 10, 17, 40
sion infrastructure Garsfontein - Phase 4
Eradicate the backlog Pipe reinforcement 711331 3 3,000,000 3,000,000 3,000,000 9, 12, 24
Klipgat, Mapopane
and Winterveld res-
ervoir
Eradicate the backlog Pipe reinforcement 711331 1 5,850,000 1,780,000 1,780,000 9, 12, 24
Klipgat, Mapopane
and Winterveld res-
ervoir
Eradicate the backlog Klip/Klipkruisfontein 711332 5 10,400,000 4,400,000 1,112,805 37, 39
Phase 3 Bulk Water
Supply reservoir

2009/06/04 09:39:05 AM
Annual Report v2.indd 417
R at start of finan- Adjustments R spent end June
KPA Project Name Project number Fund Ward
cial year budget 2008

Eradicate the backlog Klip/Klipkruisfontein 711332 1 6,000,000 37, 39

Phase 3 Bulk Water
Supply rReservoir
Provide a continuous Winterveld supply 711333 1 46,000 9
sustainable water sup- pipeline
ply to meet the growing
demand
Maintain water provi- Replacement and 711335 1 23,620,000 25,086,680 21,753,403 41, 45, 46, 47, 53,
sion infrastructure upgrading of deficient 54, 58, 59, 60, 65, 69
bulk pipeline
Provide a continuous Extension, Klapperkop 711338 5 3,000,000 3,000,000 2,999,997 56, 58, 59
sustainable water sup- main outflow
ply to meet the growing
demand
Provide a continuous Extension, Klapperkop 711338 1 16,910,000 19,605,000 19,604,731 56, 58, 59
sustainable water sup- main outflow
ply to meet the growing
demand
Maintain water provi- Klapperkop Muckle- 711339 1 6,145,000 11,245,000 11,244,683 1, 58, 60
sion infrastructure neuk pipe link
Provide a continuous Klapperkop Heights 711340 5 6,400,000 6,400,000 6,399,998 57, 59
sustainable water sup- pipe reinforcement
ply to meet the growing

City of Tshwane Annual Report 2008/2009 //

demand
CHAPTER FIVE: Functional Statistics Analysis

Provide a continuous Klapperkop Heights 711340 1 6,950,000 11,750,000 11,749,999 57, 59

sustainable water sup- pipe reinforcement

pg 417
ply to meet the growing
demand

2009/06/04 09:39:09 AM
 R at start of finan- Adjustments R spent end June
KPA Project Name Project number Fund Ward

Annual Report v2.indd 418

cial year budget 2008

pg 418
Provide a continuous Upgrade Laudium/ 711342 1 3,000,000 2,400,000 2,389,139 61

//
sustainable water sup- Erasmia bulk system
ply to meet the growing
demand
Provide a continuous Monument Park reser- 711343 1 500,000 350,000 342,384 65
sustainable water sup- voir extension
ply to meet the growing
demand
Provide a continuous Valhalla reservoir 711344 1 2,000,000 No data available 66
sustainable water sup- extension
ply to meet the growing
demand
Maintain water provi- Garsfontein pipe rein- 711345 1 2,500,000 1,000,000 997,719 5, 6, 28, 38, 40, 41,

City of Tshwane Annual Report 2008/2009

sion infrastructure forcement 42, 43, 44, 45, 46,
47, 52, 53, 54, 56, 67
Maintain water provi- Replacement heights: 711347 1 100,000 100,000 99,959 1, 3, 59
CHAPTER FIVE: Functional Statistics Analysis

sion infrastructure Hercules bulk main

system
Eradicate the backlog Temba Water purifica- 711348 1 200,000 8, 14, 73, 74, 75, 76
tion plant
Maintain water provi- Water connections: 711410 1 2,000,000 2,000,000 1,656,503 11, 11, 11, 11, 11,
sion infrastructure Soshanguve new pipes 11, 26, 27, 33, 34, 36
Eradicate the backlog Water networks: Ramo- 711533 5 4,400,000 4,400,000 4,399,999 73
tse/Morokolong
Eradicate the backlog Water networks: Ramo- 711533 1 30,400,000 33,400,000 33,399,996 73
tse/Morokolong
Maintain water provi- Reduction water losses: 711542 1 2,000,000 2,000,000 1,999,981 City wide
sion infrastructure water networks
Maintain water provi- Relocation: Water 711895 1 1,100,000 1,100,000 500,318 31
sion infrastructure meters and network
refurbishment, Mabo-
pane/Ga-Rankuwa

2009/06/04 09:39:13 AM
Annual Report v2.indd 419
R at start of finan- Adjustments R spent end June
KPA Project Name Project number Fund Ward
cial year budget 2008

Implement job creation Purification plant 711921 1 2,850,000 2,850,000 2,845,305 2, 5, 49, 50, 42, 45,
initiatives upgrade (Rietvlei) 46, 47
Maintain water provi- Construction of new 712124 1 500,000 500,000 2, 4, 11, 12, 25, 26,
sion infrastructure water depots 27, 29, 32, 33, 34,
35, 36, 37, 39
Eradicate the backlog Sekampaneng reservoir 712129 5 800,000 200,000 200,000 8, 74
Maintain water provi- BLK - individual 712133 1 200,000 350,000 349,987 46
sion infrastructure residents - Clifton/
Dommisse
Provide a continuous BLK - individual resi- 712135 1 3,000,000 2,000,000 1,999,979 48, 70
sustainable water sup- dents - Heuweloord
ply to meet the growing
demand
Maintain water provi- BLK - individual 712141 1 500,000 500,000 355,329 42
sion infrastructure residents - Waterkloof
Ridge X 2
Eradicate the backlog BLK plus reservoir - 712142 3 800,000 799,982 73, 74, 75
Babelegi
Maintain water provi- Rietvlei Dam repairs/ 712145 1 500,000 500,000 499,979 47
sion infrastructure safety
Provide a continuous Upgrading of pump 712147 1 2,455,000 3,457,684 3,111,135 42, 42, 45, 45, 65,
sustainable water sup- station 65, 69, 69, 101, 101,
ply to meet the growing 101

City of Tshwane Annual Report 2008/2009 //

demand
CHAPTER FIVE: Functional Statistics Analysis

Provide a continuous BLK - individual 712150 1 500,000 2,726,316 2,654,600 47, 65

sustainable water sup- residents - Pierre van

pg 419
ply to meet the growing Ryneveld
demand

2009/06/04 09:39:17 AM
 R at start of finan- Adjustments R spent end June
KPA Project Name Project number Fund Ward

Annual Report v2.indd 420

cial year budget 2008

pg 420
Maintain water provi- Network upgrading in 712527 1 1,000,000 1,000,000 999,206 48, 57, 61, 64, 65,

//
sion infrastructure the Centurion area 66, 69, 70
Maintain water provi- Network upgrading in 712528 1 1,000,000 1,000,000 999,641 52, 52, 52, 53, 53, 53
sion infrastructure the Moot area
Provide a continuous Reservoir extensions 712534 1 900,000 1,400,000 1,396,267 38, 40, 41, 43, 44,
sustainable water sup- 45, 46, 47, 50, 65, 67
ply to meet the growing
demand
Maintain water provi- Network upgrade in 712594 1 1,000,000 1,000,000 999,620 4
sion infrastructure the Rosslyn area
Maintain water provi- Network upgrade in 712596 1 2,000,000 2,000,000 1,997,777 3, 3, 3, 59, 60, 60, 60
sion infrastructure the CBD and Pretoria
West

City of Tshwane Annual Report 2008/2009

Eradicate the backlog Ward-based project: 712618 1 7,500,000 3,750,000 3,749,999 City wide
water and sanitation
CHAPTER FIVE: Functional Statistics Analysis

2009/06/04 09:39:21 AM
 CHAPTER FIVE: Functional Statistics Analysis

5.4.13 Electricity

Distribution
(a) Overview and description of key issues

The electricity supply and distribution functions of the Municipality include the provision of elec-
tricity and other alternative energy to the residents of Tshwane and other areas in terms of the
National Energy Regulator of SA (NERSA) license of supply.

These services extend to include all areas in terms of the NERSA license of supply for the Tshwane
Energy and Electricity Division, but do not take account of ESKOM areas of supply within the city
boundaries in terms of the NERSA license of supply for ESKOM which resides within the jurisdic-
tion of ESKOM. The Municipality has a mandate to generate electricity, develop the energy busi-
ness, distribute electricity to end-users and operate and maintain the networks.

Energy and E
lectricity became a division of the Public Works and Infrastructure Development Department with
effect from 1 July 2007. Energy and Electricity is therefore one of four divisions of Public Works.
Strategic objectives

The strategic objectives of the Energy and Electricity function are to -

• provide access to electricity to all residing within the city’s boundaries;

• implement infrastructure investment programmes that address new needs;
• provide integrated maintenance for all infrastructure;
• target procurement programmes that supports BBBEE and local economic empowerment;
• provide a free basic energy and social support package for the indigent;
• consolidate the consumer base and support maximum revenue collection; and
• develop the department’s human capital through training, consultation with employee/rep-
resentatives, participation and implementing programmes that promote equity and gender
representation.

Key Issues
The key issues for 2008/09 are:

• The eradication of infrastructure backlogs by 2012 by providing electricity connections to

end-users
• Maintaining the current electricity generation and distribution infrastructure to ensure reliable
and continued supply (limiting the number of outages)
• Promoting the usage of electricity by the general public, businesses, and industry

City of Tshwane Annual Report 2008/2009 // pg 421

Annual Report v2.indd 421 2009/06/04 09:39:26 AM

 CHAPTER FIVE: Functional Statistics Analysis

(b) Analysis of the function

Statistical information 2006/07 2007/08

Number and cost to employer

of all personnel associated
No R (000s) No R (000s)
with the electricity distribution
function:
- Professional workers 184 188
(engineers/consultants)
- Fieldworkers (supervisors/foremen) 172 212
- Office workers 71 378 386 147 409 842
(clerical/administration)
- Non-professional 1,338 1256
(blue collar, outside workforce)
- Temporary workers <total> <cost> - -
- Contract workers <total> <cost> 796 67 950
TOTAL 1 879 378 386 2 603 477 792

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 elec- No R (000s) No R (000s)

tricity purchases in kilowatt hours and
rand, by category of consumer
- Residential 3,853,927,548 R 708,916 3 926 524 059 717 539
- Commercial 1,288,041,432 R 208,118 1 508 164 439 275 604
- Industrial 4,520,055,798 R 540,029 4 364 195 347 797 520
- Other <volume> <cost> <volume> <cost>
TOTAL 9 662 GWh 1 701 012 487 9 799 GWh 1 791 663
Total quantity and receipts for bulk
electricity sales in kilowatt hours and
rand, by category of consumer:
- Household 3 415,2 GWh 1 132 993 125 3 602 550 848 1 447 068
- Commercial 1 343,4 GWh 451 572 058 1 383 727 439 470 173
- Industrial 3 927,5 GWh 1 012 181 241 4 004 110 356 1 092 287
- Other (smallholdings) <volume> <cost> 108 421 769 DATA NOT
AVAILABLE
TOTAL 8 854,3 GWh 2 664 517 714 9 098.8 GWh 3 009 528
Total year-to-date electricity losses in No R (000s) No R (000s)
kilowatt -hours and rand
TOTAL 807,6 GWh 142 194 116 659 GWh 120 395
Cost of losses
Number of households with electricity
access, and type and cost of service:
Detail No R (000s) Total No R(000’s)
- Electrified areas
- Municipal 361 898 <cost> 380 863
Including bulk
residential con-
nections
- ESKOM 47,964 DATA NOT AVAIL- 86 240
ABLE
- Alternate energy source City does not provide alternate energy

pg 422 // City of Tshwane Annual Report 2008/2009

Annual Report v2.indd 422 2009/06/04 09:39:30 AM

 CHAPTER FIVE: Functional Statistics Analysis

Statistical information 2006/07 2007/08

Number and cost to employer

of all personnel associated
No R (000s) No R (000s)
with the electricity distribution
function:
- Gas Not available Not available Not available Not available
- Paraffin Not available Not available Not available Not available
- Solar 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 services are available, please provide details

Number and cost of new connections: No R (000s) No R (000s)

Number and cost of new connections 3 839 R 23,400 6 375 25 814
(private developments)
Total (all developments) 8,623 R 22,662 6 375 25 814
Number and cost of disconnections 196 415 R32 928 451874 R12,723,
and reconnections Including the 328 Includes Final
280 Final De- Demand notices
mands delivered delivered
and the 51 101
illegal connection
inspection done
Total 196,415 R32 928 451,874 R12,723,
Number and total value of electrifica- R (000s) R (000s)
tion projects planned and current:
- Current (financial year after year 32 R 368,335 32 R 421 985
reported on) (2007/08)
- Planned (future years) (2008/09) 27 R 409,651 27 R 442 790
Note: provide total project and
project value as per initial or revised
budget
Anticipated expansion of electricity No R (000s) No R (000s)
service:
Total 12 000 R63 600 16 402 R150 300

Note: provide total number of households anticipated to benefit and total additional operating cost per year to the
Municipality

Estimated backlog in number (and R (000s)

cost to provide electricity connec-
tions):
Total 136,000 113
R680,000 R63 16 402 R150 300
12 000 600

Note: total number should appear in IDP, and cost in future budgeted capital housing programmes

Free basic service (FSB) provision: No R (000s) No R (000s)

- Quantity (number of households 394 168 89 371 721 About 70 000 Value not
affected) customers includ- available
ing Eskom areas as yet

113
This backlog refers to the Housing backlog

City of Tshwane Annual Report 2008/2009 // pg 423

Annual Report v2.indd 423 2009/06/04 09:39:34 AM

 CHAPTER FIVE: Functional Statistics Analysis

Statistical information 2006/07 2007/08

Number and cost to employer

of all personnel associated
No R (000s) No R (000s)
with the electricity distribution
function:
- Quantum (value to each household) 50 kWh per R20,.48 100 kWh for R 43.43
month indigent consum- (Indigent)
ers and 50 kWh R71.72
for customers (customers
consuming less consuming
than 200kWh / less than
month 200 kWh/
month)
Note: Provide details of how many
households receive the FBS provision,
and the average value it means per 100 kWh per month provided only to registered indigents.
household. Describe in detail the level
of free basic services provided.
Type and number of grants and subsi- No R (000s) No R (000s)
dies received:
MIG 8 065 houses to R11 500
be electrified

R 25,000
DME 11 500 houses to 11 250 R45 000
be electrified

R 28,600

Note: Total value of specific electricity grants actually received during year to be recorded over the five quarters - Apr
to Jun last year, Jul to Sep, Oct to Dec, Jan to Mar, Apr to Jun this year

Total operating cost of electricity R2,486,429 Data not avail- R2,646,710

distribution function able

pg 424 // City of Tshwane Annual Report 2008/2009

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Annual Report v2.indd 425
(c) Key Performance Areas

Activities/ Initia- Five-year pro- Achieved Target Actual

KPA KPI Rating Comments/ Corrective Actions
tives gramme target 2006/07 2007/08 2007/08
Eradication/reduc- Residential connec- Number of com- Electrify 112 000 of 11 131 12 000 11 250 No sufficient houses available to be
tion of infrastructure tions pleted and occupied 136000 houses by connected. Led by Housing dept. The
backlogs houses electrified 2011 114 shortfall has been recurring every year
hence this matter will be referred to DME
to approve the electrification of informal
settlement
Connections in Win- Number of com- 13 110 7 200 5 152 “Same as above”
terveld and Eskom pleted and occupied
areas houses in Winterveld
electrified
Provide quality infra- Provide bulk infra- Number of new Provide 11 131 new 6 305 2 333 6 375 Demand driven. Target exceeded
structure for growth structure to support connections (private electricity infrastruc-
connections made developments) ture developments 3 839 – new
by private develop- as per projected connections by
ers annual growth private develop-
ers
Km of 11 kV over- 37 km 31 km Network driven. Proper network focusing
head lines added to will done in future
the network
Km of 11 kV 39 km 40,2km Target achieved
underground

City of Tshwane Annual Report 2008/2009 //

cables added to the
network
CHAPTER FIVE: Functional Statistics Analysis

114
This includes houses electrified by other partners through service level agreements

pg 425

2009/06/04 09:39:42 AM
 Activities/ Initia- Five-year pro- Achieved Target Actual
KPA KPI Rating Comments/ Corrective Actions

Annual Report v2.indd 426

tives gramme target 2006/07 2007/08 2007/08

pg 426
Provide households Number of non- At least 1% of 20 000 18 619 Reason for not achieving the 20,000:

//
in informal areas electrified house- households using Some customers refuse to accept the
(unproclaimed ar- holds supplied with non-conventional LP Gas packages hence they were not
eas) (non-electrified) free alternative energy per type by registered. This project has been discon-
with access to energy equivalent 2011 tinued by DME pending the formulating
alternative forms of to 50 kw monthly of by-laws to govern the installation of
basic energy per type alternative energy
Provide quality infra- Number of non- 70 70 The Division does not have budget for
structure for growth electrified house- • 50 Solar Water alternative energy. The Division will wait
holds supplied with Heaters for the approval of application of funds
free alternative • 10 Ethanol before publishing the target
energy (LP gas) • 10 LPGas in
equivalent to 50 kw Winterveld
monthly by the DME

City of Tshwane Annual Report 2008/2009

Provide quality infra- Change at least 6 No of residences 4 681 1 000 2 651 Target exceeded due to more applica-
structure for growth 000 residences to changed to prepaid tions received. KPI is application driven.
CHAPTER FIVE: Functional Statistics Analysis

prepaid meters meters

Provide public No of Informal 2 3
lighting areas(unproclaimed
areas) with access
to public lighting (ie
street lights and high
mast lights)
Ensure maintenance R spent on opera- Expenditure on 197 332 000 220 023 237 251 213 117 Serious needs for maintenance.The
of existing infrastruc- tional maintenance infrastructure main- Division will request more funds from
ture tenance is in line Finance Department
with national norms
and standards by
2011

2009/06/04 09:39:46 AM
Annual Report v2.indd 427
Activities/ Initia- Five-year pro- Achieved Target Actual
KPA KPI Rating Comments/ Corrective Actions
tives gramme target 2006/07 2007/08 2007/08
Ensure maintenance R spent on infra- R53,6m R52,9m On target
of existing infrastruc- structure upgrade (ie
ture increasing the life of
an asset) (capital)
Repairs and mainte- 14% 7% 7% 8.2%
nance to TOI (total
operating income)
for electricity
services
Ensure maintenance Ensure optimal Reduce unaccount- 8,36% 9% 9,5% The Division has started to installed me-
of existing infrastruc- resource utilisa- ed for electricity in ters on public lighting network to reduce
ture tion (unaccounted line with interna- the unaccounted losses
electricity) tionally accepted
benchmarks
Regeneration and Implement contracts Implement 269 8 8 Target achieved
development of through EPWP contracts 115 through
potentially viable the EPWP
economic nodes
focusing on the in-
ner city and targeted
areas based on
efficient land use
Increase participa- Give preference Percentage of local 80% 40% 65% Target achieved
tion and broaden to local vendors to vendors used for
the contribution in provide non-spe- non-specialised
growing the city’s cialised service services
economy through
the development of
SMME’s, coopera-

City of Tshwane Annual Report 2008/2009 //

tives, the informal
CHAPTER FIVE: Functional Statistics Analysis

sector and the role

of black people,

pg 427
women and youth

115 This target includes all functions that implement the Expanded Public Works Programme (EPWP)

2009/06/04 09:39:52 AM
 Activities/ Initia- Five-year pro- Achieved Target Actual
KPA KPI Rating Comments/ Corrective Actions

Annual Report v2.indd 428

tives gramme target 2006/07 2007/08 2007/08

pg 428
Entrench a customer- Respond and man- Number of customer No target set 7 437 Dependant on outages happening. Load

//
focused approach to age customer com- complaints regarding the goal is to shedding had an impact.
citizenry and business plaints on electricity electricity services respond to all
by setting standards
complaints
that we achieve guided
by the Batho Pele
principles
Sound human resource Skills development Number of employees Corporate services 4 723 No actual no. of courses set in advance.
management trained to improve organi- Some arranged as and when they are
sational skills capac- available.
ity by 5% pa
Manage employee % of employee griev- 100% 100% Al step 2 grievances finalised
grievances ances finalised

Employee discipline No of employees disci- 9 at DC level. We intent to finalise all cases as they are

City of Tshwane Annual Report 2008/2009

plined according to the None at divi- reported on Divisional level. Tribunal
disciplinary procedure sional level cases to be finalised by Legal Services
Sound human resource Cascade scorecards Levels to which Corporate target to 4 4 Target achieved
CHAPTER FIVE: Functional Statistics Analysis

management down to all organi- individual perfor- cascade to level 5

sational levels mance management is as per the 0607 IDP
cascaded

Implement and The number of people Corporate target: 1 1 Target achieved

ensure EE from the employment 90% representation
equity target groups by 2011 across the
employed in the three
organisation
highest levels of man-
agement in compliance
with the Municipality’s
approved employment
equity plan, short-term
employment, and
long-term employment.
(NKPI)

2009/06/04 09:39:56 AM
Annual Report v2.indd 429
d) Progress with project implementation

Project R at start of Adjustments R spent end June

KPA Project Name Fund Ward
number financial year budget 2008

Ensure maintenance of existing infrastructure Upgrading/ Strengthening of Existing Network 710005 1 6,000,000 0 4,386,590.90 Tshwane wide
Schemes
Provide quality infrastructure for growth Payments to Townships for Reticulated Towns 710006 1 5,000,000 0 5,775,101.80 Tshwane wide
Eradication/Reduction of infrastructure back- Njala Infeed Station Stage II Extension 710156 1 13,500,000 0 13,002,646.32 47, Tshwane wide
logs
Eradication/Reduction of infrastructure back- Sub-Transmission System Equipment Refurbish- 710163 1 6,000,000 0 5,993,486,97 Tshwane wide
logs ment
Eradication/Reduction of infrastructure back- 11 kV Panel Extension in Substations 710164 1 5,500,000 0 5,492,466.11 Tshwane wide
logs
Ensure maintenance of existing infrastructure Groenkloof: Erect Substation Switch-Yard, Cable 710167 1 6,000,000 0 5,982,228.10 59, 56, 42
Eradication/Reduction of infrastructure back- Wapadrand Substation Stage II Extension 710168 1 5,700,000 0 5,699,952.35 40, 42, 44, 45, 46
logs
Eradication/Reduction of infrastructure back- Pumulani Substation Stage II Extension 710169 1 17,000,000 0 16,987,999.49 5, 43, 49, 52
logs
Eradication/Reduction of infrastructure back- Claudius Substation Stage II Extension 710172 1 18,000,000 0 17,999,743.49 7, 48, 66, 70, 71,
logs 72, 61
Ensure maintenance of existing infrastructure Replacement of Obsolete and Dangerous 710176 1 6,000,000 0 5,993,311.99 Tshwane wide
Switchgear
Provide quality infrastructure for growth Low -Voltage Network within Towns 710177 1 9,435,000 0 9,150,329 Tshwane wide
Eradication/Reduction of infrastructure back- Electricity for All 710178 1 25,500,000 21,095,000 46,281,261.50 Tshwane wide
logs
Eradication/Reduction of infrastructure back- Electricity for All 710178 6 37,400,000 15,000,000 52,227,673.36 Tshwane wide
logs

City of Tshwane Annual Report 2008/2009 //

Ensure maintenance of existing infrastructure Geospatial Information Technology Implementa- 710180 1 3,000,000 0 3,000,000 Tshwane wide
tion
CHAPTER FIVE: Functional Statistics Analysis

Provide quality infrastructure for growth Communication Upgrade: Optical Fibre Net 710325 1 1,000,000 0 990,281.74 Tshwane wide

pg 429
Ensure maintenance of existing infrastructure Strengthening 11 kV Cable Network 710480 1 13,000,000 0 12,812,961.98 Tshwane wide
Ensure maintenance of existing infrastructure Strengthening 11 kV Overhead Network 710481 1 9,000,000 0 8,788,013.63 Tshwane wide

2009/06/04 09:40:00 AM
 Project R at start of Adjustments R spent end June
KPA Project Name Fund Ward

Annual Report v2.indd 430

number financial year budget 2008

pg 430
Provide quality infrastructure for growth Substations 710484 1 1,200,000 0 1,198,020.20 Tshwane wide

//
Eradication/Reduction of infrastructure back- Wingate Substation Extension 711511 1 10,000,000 0 10,000,000 45, 46, 47, 57, 65
logs
Eradication/Reduction of infrastructure back- Centurion CBD Capacity Upgrade 711703 1 7,000,000 0 6,987,625.42 65, 64, 66, 69, 70
logs
Eradication/Reduction of infrastructure back- Pre-Paid Electricity Meters 711862 1 20,000,000 0 17,773,851.59 Tshwane wide
logs
Provide quality infrastructure for growth New Connections 712483 1 25,000,000 17,555,549 40,365,638.34 Tshwane wide
Sustainability management Energy Consumption Reduction Initiatives 712491 1 1,000,000 0 999,995.93 Tshwane wide
Eradication/Reduction of infrastructure back- Electrification of Winterveld 712492 1 40,000,000 0 39,944,761.88 9,24,12
logs
Provide quality infrastructure for growth New Depot (Soshanguve) 712493 1 15,000,000 0 1,255,873.69 11, 25, 26, 27,

City of Tshwane Annual Report 2008/2009

29, 13, 14
Ensure maintenance of existing infrastructure Standby Quarters 712601 1 2,000,000 0 123,675 Tshwane wide
Ensure maintenance of existing infrastructure Protection of Electrical Networks 711645 1 2,000,000 0 1,998,529.34 Tshwane wide
CHAPTER FIVE: Functional Statistics Analysis

Provide quality infrastructure for growth New Bulk Infrastructure 712279 1 7,000,000 0 6,999,892.52 Tshwane wide
Eradication/Reduction of infrastructure back- Heatherly/Mamelodi Upgrades 710153 1 15,000,000 0 14,962,494.40 10,40
logs
Eradication/Reduction of infrastructure back- Soshanguve Ringfeeders 712602 1 1,500,000 0 1,494,220.12 37,49
logs
Ensure maintenance of existing infrastructure Replacement of Obsolete and Non-Functional 712006 1 2,000,000 0 1,997,374.56 1, 52, 54, 60, 34,
Equipment 29, 70, 69,65
Eradication/Reduction of infrastructure back- Ward-Based Project: Electricity 712608 1 7,500,000 0 6,922,977.96 8,9,12,14,19,20,

logs 21,22,24,30,31,3

2,40 (Nellmapius

part),43,48,73,74,75,76

2009/06/04 09:40:05 AM
 CHAPTER FIVE: Functional Statistics Analysis

5.4.13.1 Street Lighting

(a)Overview and description of key issues

The department has restructured Public Lights which include street lighting and high-masts into
one dedicated sub-section from 1 July 2008. The street lighting responsibilities of the Municipal-
ity are administered as follows and include:

• Lighting up public roads and public areas for safety and security reasons in the disadvan-
taged communities.
• Maintenance of existing street lighting and area lighting (high masts) and the expansion of
services, but not of parks and public places which resides within the jurisdiction of the na-
tional or provincial government, the private sector or other municipal departments.

Key issues
• Cable theft
• Vandalism
• Procurement policies and procedures
• Late delivery of materials, escalation of materials
• Continuous increase of the copper price

(b) Analysis of the function

Analysis
of the <Statistical information) 2006/07 2007/08
function
1 Number and total operating cost of street No R (000s) No R (000s)
lights servicing population:
Number of street lights and high-mast 222,750 R 162 000 1 809 R25 007
lights:
Note: total street lights should be available
from municipal inventory
2 Total bulk kilowatt hours consumed for
street lighting:
Gigawatt hours: 18,2 R 14 100 108 GWh R19 813
Note: total number of kilowatt hours con-
sumed by all street lighting for year

City of Tshwane Annual Report 2008/2009 // pg 431

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 CHAPTER FIVE: Functional Statistics Analysis

>> 5.5 Municipal Entities

5.5.1 Performance highlights

Outline the entity’s key performance areas and mention a few outstanding highlights for the
period 1 July 2007 to 30 June 2008 per departmental key performance area.
5.5.2. Human resource and other organisational management

5.5.2.1 Organisational structure

5.5.2.2 Staff information

Statistical information 2005/6 2006/07

Number and cost to employer of all per-

sonnel associated with the water distribution No R (000’s) Nr R (000’s)
function:
- Professional workers (engineers/consultants) 25 6,677 25 8,163
- Fieldworkers (supervisors/foremen) 22 2,151 22 5,377
- Office workers (clerical/administration) 107 9,113 107 9,305
- Non-professional workers (blue collar, outside 111 7,861 110 6,746
workforce)
- Temporary workers <cost>
- Contract workers <cost>
Note: total number to be calculated on full-time 265 25,802 264 29,591
equivalent (FTE) basis, total cost to include total
salary package.

2005/07 2006/07 2007/08

Key function (as per or-
ganisational structure, eg Number Number Number
Number Number Number
planning; connections etc) of posts of posts of posts
of posts of posts of posts
filled filled filled
Risk and Training 7 2
Finance 85 57
Regional Manager 6 4
Operations 111 102
Waste Water 60 52
Human Resources 10 5
Marketing 41 28
Total 320 250

pg 432 // City of Tshwane Annual Report 2008/2009

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 CHAPTER FIVE: Functional Statistics Analysis

a) Disclosure of senior staff benefits

Remuneration
package per an-
Incumbent Pay number Designation Bonus R
num (2007/08)
R
M J TAETSANE 3000065 MD (ACTING) 411 953 15 352
P S MOKWENA 1001847 HR MANAGER 448 461 20 936
P J AVENANT 3000059 FINANCE MANAGER 475 062 22 887
R J MODISE 1001882 MARKETING MAN- 407176 22 887
AGER
S BARONIAN 3000060 OPS MANAGER 660 908 33 887

b) Disclosures concerning Board Members for the period 1 July 2007 to 30 June 2008

Salaries Chairper-
and Wages son of the Q1 Q2 Q3 Q4 Total
R’000 Board

Normal
Chairperson P Malefo 25000x2 2500 2500x2 2500 15 000
of the Board
K Sekhokho 2500x2 2500 2500x2 2500 15 000
T Makgatho 2500x2 2500 2500 2500 15 000
M Dooms 2500x2 2500 2500 2500 15 000
Travel and
motor car
Administration
Other benefits and allowances (specify) R ‘000
Chairperson
of the Board
Administration

City of Tshwane Annual Report 2008/2009 // pg 433

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 CHAPTER FIVE: Functional Statistics Analysis

b) Employment Equity

Occupational Categories Male Female White Foreign Na- Total

Male tionals
A C I A C I W W Male Female

Legislators, senior officials and managers 3 0 0 1 0 0 0 4 0 0 8

Professionals 2 0 0 2 0 0 0 1 0 0 5
Technicians and associate professionals 8 0 0 3 0 0 0 2 0 0 13
Clerks 49 1 1 53 0 0 1 0 0 0 105
Service and sales workers 0 0 0 0 0 0 0 0 0 0 0
Skilled agricultural and fishery workers 0 0 0 0 0 0 0 0 0 0 0
Craft and related trades workers 26 0 0 0 0 0 0 0 0 0 26
Plant and machine operators and as- 30 0 0 1 0 0 0 1 0 0 32
semblers
Elementary occupations 77 0 0 8 0 0 0 0 0 0 85
Top-management 2 0 0 1 0 0 0 2 0 0 5
Senior management 1 0 0 0 0 0 0 1 0 0 2
Professionally qualified and experienced 5 0 0 2 0 0 0 2 0 0 9
specialists and mid-management
Skilled technical and academically quali- 6 0 1 6 0 0 0 1 0 0 14
fied workers, junior management, super-
visors, foremen, and superintendents
Semi-skilled and discretionary decision 89 1 0 52 0 0 0 1 0 0 143
making
Unskilled and defined decision making 92 0 0 7 0 0 1 1 0 0 101
Total Permanent 195 1 1 68 0 0 1 8 0 0 274
Non-permanent employees 0 0 0 0 0 0 0 0 0 0 0
Grand Total 195 1 1 68 0 0 1 8 0 0 274

5.5.2.4 Skills development

FY 2007/08
A total number of 135 individuals were trained in terms of skills priorities.
A total expenditure on training for various skills priorities was R 1,214,410.

Skills levies:
A total of R 292,363,51 was paid in skills levies to the SETA FY2006/07 .
A total of R 82,860,73 was claimed back in terms of Grant C and D FY2006/07.
A total of R 313,218,98 was paid in skills levies to the SETA FY2007/08.
A total of R? was claimed back in terms of Grant C FY2007/08.

pg 434 // City of Tshwane Annual Report 2008/2009

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 CHAPTER FIVE: Functional Statistics Analysis

Learning intervention statistics

Ocupational Therapy Total

Clerks 68
Craft and related trade workers 7
Elementary occupations
Legislators, senior officials and managers 7
Plant and machine operators and assemblers 44
Professionals 3
Service and sales workers
Skilled agricultural and fishery workers
Technicians and associated professionals 6
Bursars
Temporary employees
Learnership placements 10
Pensioners 0
Grand Total
Bursaries:
Employees 2
Non-employees 0
Non-employees (social responsibility) 0
Mayoral Matric Awards 0
Total 2

Learnerships and apprenticeships for 2007/08:

Name of Number of Learnership Provider Start date Proposed

learnership/ students dur- or appren- ending date
apprentice- ing intake of ticeship
ship learnership or budget
apprentice-
ship
Leanerships 10 200 000 Water Academy Feb 2007 Dec 2008
Apprenticeships 1 Internal April 2008 March 2009
Total

5.5.2.3 Occupational health and safety

Number of Injuries on duty 9

5.5.2.4 Employment wellness management 0

5.5.2.5 Performance management 0

City of Tshwane Annual Report 2008/2009 // pg 435

Annual Report v2.indd 435 2009/06/04 09:40:25 AM

 CHAPTER FIVE: Functional Statistics Analysis

5.5.2.4 Pension funds

The composition of membership per pension and provident fund was as follows:

2007/08
Fund
Number of members

Sandspruit Works Association Provident Fund 259

Total

a) Medical ad funds

Membership of the medical aid funds was as follows:

2007/08
Fund
Number of members
Discovery Medical Aid 22
Sizwe Medical Aid 202
Total

b) Outstanding amounts owed to the entity by employees

Number of employees Type of loan/outstanding debt Total rand owed

Car loans
Council recovery loan
Lost goods loan
Study loan R3 3062,74
Total

pg 436 // City of Tshwane Annual Report 2008/2009

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Annual Report v2.indd 437
Municipality Entity
Com-
ments
Five-year and/or
2006/07 2007/08 2008/09 Rating on
Programmes/ Projects/Ac- pro- 2007/08 corrective
Departmental KPA Indicators achieve- achieve- target 2008/09
tivities gramme target actions
ment ment
target where ap-
plicable
Provide intermediate or higher Provide a continuous sustainable Mℓ water purified
levels of water services in water supply to meet the growing
proclaimed areas demand
Continuously repair and maintain R spent on infrastructure (upgrade
existing water infrastructure and replace)
R spent on operational maintenance
(Opex)
Comply with minimum water Manage quality of water to ensure Water quality to SANS 241 standard
services standards as required potable water and number of tests performed
by the Department of Water
Affairs
Support job creation through Create temporary (short-term) jobs The number of jobs created through
labour intensive projects and in the implementation of capital the Municipality’s LED initiatives,
EPWP projects including capital projects (NKPI)
Develop viable communities Give preference to local vendors to Percentage of local vendors used for
provide non-specialised services non-specialised services
Respond to customer com- Respond and manage customer Number of customer complaints 23 681 22 496 10 320 10 320 -
plaints complaints
% compliance with turnaround times 100% 95% 100% 97% 100%
for service provision to customers
Implement standard Batho Number of service points with Batho 5 5 5 5 6

City of Tshwane Annual Report 2008/2009 //

Pele compliant operating Pele operating procedures
CHAPTER FIVE: Functional Statistics Analysis

procedures at all customer

contact points and service

pg 437
desks
Capital expenditure % of Capex spent

2009/06/04 09:40:34 AM
 Municipality Entity

Annual Report v2.indd 438

Com-
ments

pg 438
Five-year and/or
2006/07 2007/08 2008/09 Rating on

//
Programmes/ Projects/Ac- pro- 2007/08 corrective
Departmental KPA Indicators achieve- achieve- target 2008/09
tivities gramme target actions
ment ment
target where ap-
plicable
Manage operational expen- % of Opex spent
diture
Manage remuneration to be within Remuneration as a % of the total
RG targets adjusted operating budget
Human resource development Number of employees trained
Implement workplace skills plan % of operational budget spent on 2,71% 2,15%
implementing the workplace skills
plan
Performance management Manage employee grievances % of employee grievances finalised 90%

City of Tshwane Annual Report 2008/2009

Manage employee discipline Number of employees disciplined ac- 4
cording to the disciplinary procedure
Cascade scorecards down to all Levels to which the scorecards have na na
CHAPTER FIVE: Functional Statistics Analysis

organisational levels been cascaded

Employment Equity (EE) Implement and ensure EE The number of people from the 2 3 3
Employment Equity target groups em-
ployed in the three highest levels of
management in compliance with the
Municipality’s approved Employment
Equity Plan, short-term employment,
and long-term employment (NKPI)
All incidences of fruitless and Ensure departmental compli- Number of incidences of fruitless
wasteful expenditure and the R ance with legislation and no audit expenditure
value thereof qualifications
R value of fruitless expenditure

2009/06/04 09:40:38 AM
Annual Report v2.indd 439
Function: Water
Subfunction: Water Distribution

2006/07 2007/08 2008/09

Reporting Level Detail Total Cost Total Cost Total Cost

Overview: Includes the bulk purchase and distribu- 18 075 608 kℓ R53 100 000,00 18 250779 R56 026 000,00 18 400 000 kℓ R59 591 078,34
tion of water
Description of the The water purchase and distribution func-
activity: tions of the municipality are administered
as follows and include:
Operations Depart- OPERATIONS: this is offered to the com- 23 681 queries n/a 10 320 queries Operational Not yet available Budget is opera-
ment: munity as follows: completed completed expenditure tional expenditure
1. Maintenance of the water network R50854000,00
Operational expendi- in terms of pipe leakages, meter R65038000,00
ture and repairs and leakages pressure
maintenance 2. Continuous supply of water to the
end user in terms of 48 hours stor-
age capacity in reservoirs
3. Sanitation services
4. Water loss management
5. Maintain water quality standards
These services extend to include <func-
tion/area>, but do not take account
of <function/area> which sits within
the jurisdiction of <national/provincial/
other government/private sector>. The
Municipality has a mandate regarding the
following:
Water services area Water services area: 18 075 608 kℓ R53 100 000,00 18 250 779 R56 026 000,00 18 400 000 kℓ R59 591 078,34

City of Tshwane Annual Report 2008/2009 //

Urban
CHAPTER FIVE: Functional Statistics Analysis

Ga-Rankuwa, Mabopane, Winterveld

Peri-urban

pg 439
Winterveld A and E informal, Itsoseng,
Tusanang, Kopanong

2009/06/04 09:40:42 AM
 2006/07 2007/08 2008/09

Annual Report v2.indd 440

Reporting Level Detail Total Cost Total Cost Total Cost

pg 440
The strategic objectives of this function:

//
UAW The strategic objectives of this function n/a n/a Operational expendi- Operational expen- Operational expen- Operational
are: ture, and repairs and diture, and repairs diture, and repairs expenditure, and
1. To reduce water losses in SWA maintenance and maintenance and maintenance repairs and main-
2. To meet the water volume budget tenance
as set out
3. Pressure management and leak
detection on main lines
4. To improve and maintain water
quality
The key issues for 2008X/0Y are:
The key focus areas 1. Reduction of UAW n/a n/a Operational expendi- Operational expen- Operational expen- Operational
2. Increase operational staff produc- ture, and repairs and diture, and repairs diture, and repairs expenditure, and

City of Tshwane Annual Report 2008/2009

tivity maintenance and maintenance and maintenance repairs and main-
3. Increase effectiveness of stock con- tenance
trol to job card information
CHAPTER FIVE: Functional Statistics Analysis

4. Better usage of telemetery

5. Improved application of IMQS
6. ensure quality of water, meet SANS
1 standards
7. Achieve and maintain network pres-
sure between 4 and 6 bars
8. Ensure adequate bulk-water supply
to SWA service delivery area
9. Improve response time

2009/06/04 09:40:46 AM
Annual Report v2.indd 441
2006/07 2007/08 2008/09

Reporting Level Detail Total Cost Total Cost Total Cost

Statistical information 1. Reduction of UAW n/a n/a 30% n/a 28% n/a
on (as a minimum) 2. Increase operational staff produc- n/a n/a 80% n/a 90% n/a
tivity
3. Increase effectiveness of stock con- n/a n/a 80% n/a 90% n/a
trol to job card information
4. Better usage of telemetery n/a n/a 50% n/a 100% n/a
5. Improved application of IMQS n/a n/a 50% n/a 100% n/a
6. Ensure quality of water, meet SANS n/a n/a 100% n/a 100% n/a
1 standards
7. Achieve and maintain network pres- n/a n/a 50% n/a 90% n/a
sure between 4 and 6 bars
8. Ensure adequate bulk water supply n/a n/a 80% n/a 90% n/a
to SWA service delivery Area
9. Improve response time n/a n/a 70% n/a 90% n/a
1 Number and cost to employer of all R (000s) STEVE R (000s) STEVE R (000s)
personnel associated with the water
distribution function:
- Professional workers(engineers/con- 8,163 11,320
sultants)
- Fieldworkers (supervisors/foremen) 5,377 7,277
- Office workers (clerical/administration) 9,305 12,533
- Non-professional workers (blue collar, 6,764 9,298
outside workforce)
- Temporary workers
- Contract workers

City of Tshwane Annual Report 2008/2009 //

Note: Total number to be calculated on
full-time equivalent (FTE) basis, total cost
CHAPTER FIVE: Functional Statistics Analysis

to include total salary package.

pg 441
2 Percentage of total water usage per
month

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 2006/07 2007/08 2008/09

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Reporting Level Detail Total Cost Total Cost Total Cost

pg 442
Percentage water use JT municipal template/percentage water 1, 400 000 kℓ per 1 400, 000, kℓ per 1 450 000 kℓ per 1 500 000 kℓ per 1 500 000 kℓ per <volume>

//
per month use per month month month month month month
Note: This will therefore highlight the
percentage of total water stock used per
month
3 Total volume and cost of bulk-water pur- R (000s) R (000s) R (000s)
chases in kilolitres and rand, by category
of consumer
Tshwane consumers Tshwane consumers 18 075 608 kl R53 100 00 00 18 250 055 kl R56 026 356,85 18 400 000 kl R59 591 078,34
Madibeng consumers Madibeng consumers 9 110 294 kl R30 763 000,00 9 600 509 kl R33 893 923,93 9 601 000 kl R35 109 675,39
4 Total volume and receipts for bulk-water R (000s) R (000s) R (000s)
sales in kilolitres and rand, by category of

City of Tshwane Annual Report 2008/2009

consumer:
Tshwane number of 45 500 households 18 075 608 kl R53 100 00 00 18 250 055 kl R56 026 356,85 18 400 000 kl R59 591 078,34
households
CHAPTER FIVE: Functional Statistics Analysis

Madibeng number of 14 500 households 9 110 294 kl R30 763 000,00 9 600 509 kl R33 893 923,93 9 601 000 kl R35 109 675,39
households
- Category 3 <insert here> (total num- <volume> <cost> <volume> <cost> <volume> <cost>
ber of households)
- Category 4 <insert here> (total num- <volume> <cost> <volume> <cost> <volume> <cost>
ber of households)
5 Total year-to-date water losses in kilolitres R (000s) R (000s) R (000s)
and rand
Water UAW 6 073 404 R17 841 599,15 5 475 016 kl R16 807 904,92 5 152 000 kl R16 685 501,94
Reporting Level Detail Total Cost Total Cost Total Cost
6 Number of households with water service, R (000s) R (000s) R (000s)
and type and cost of service:
Urban, Ga-Rankuwa - Piped water inside dwelling 44 500 Operational expen- 45 500 Operational expen- 46 000 Operational
Mabopane, Winterveld diture and repairs, diture and repairs, expenditure, and
and maintenance and maintenance repairs and main-
tenance

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Annual Report v2.indd 443
2006/07 2007/08 2008/09

Reporting Level Detail Total Cost Total Cost Total Cost

- Piped water inside yard 14 500 Operational expen- 15 500 Operational expen- 16 580 Operational
diture, and repairs diture, and repairs expenditure, and
and maintenance and maintenance repairs and main-
see tenance
- Piped water on community stand: 14 500 Operational and 15 500 Operational expen- 16 580 Operational
distance < 200 m from dwelling maintenance diture, and repairs expenditure, and
expenditure and maintenance repairs and main-
tenance
- Piped water on community stand: n/a n/a n/a n/a n/a n/a
distance > 200 m from dwelling
- Borehole n/a n/a n/a n/a n/a n/a
- Spring n/a n/a n/a n/a n/a n/a
- Rain-water tank n/a n/a n/a n/a n/a n/a
Note: If other types of services are avail-
able, please provide details
7 Number and cost of new connections: R (000s) R (000s) R (000s)
<detail total> na na 6596 SEE 2673 SEE
8 Number and cost of disconnections and R (000s) R (000s) R (000s)
reconnections:
<detail total> <number> <cost> <number> <cost> <number> <cost>
9 Number and total value of water projects R (000s) R (000s) R (000s)
planned and current:
- Current (financial year after year City of Tshwane City of Tshwane City of Tshwane City of Tshwane City of Tshwane City of Tshwane
reported on)

City of Tshwane Annual Report 2008/2009 //

- Planned (future years) City of Tshwane City of Tshwane City of Tshwane City of Tshwane City of Tshwane City of Tshwane
Note: Provide total project and project
CHAPTER FIVE: Functional Statistics Analysis

value as per initial or revised budget

10 Anticipated expansion of water service: R (000s) R (000s) R (000s)

pg 443
- Piped water inside dwelling City of Tshwane City of Tshwane City of Tshwane City of Tshwane City of Tshwane City of Tshwane

2009/06/04 09:40:59 AM
 2006/07 2007/08 2008/09

Annual Report v2.indd 444

Reporting Level Detail Total Cost Total Cost Total Cost

pg 444
- Piped water inside yard City of Tshwane City of Tshwane City of Tshwane City of Tshwane City of Tshwane City of Tshwane

//
- Piped water on community stand: n/a n/a n/a n/a n/a n/a
distance < 200 m from dwelling
- Piped water on community stand: n/a n/a n/a n/a n/a n/a
distance > 200 m from dwelling
- Borehole n/a n/a n/a n/a n/a n/a
- Spring n/a n/a n/a n/a n/a n/a
- Rain-water tank n/a n/a n/a n/a n/a n/a
Note: Provide total number of households
anticipated to benefit and total additional
operating cost per year to the Municipal-
ity

City of Tshwane Annual Report 2008/2009

11 Estimated backlog in number (and cost) R (000s) R (000s) R (000s)
to provide water connection:
- Piped water inside dwelling 0 0 0 0 0 0
CHAPTER FIVE: Functional Statistics Analysis

- Piped water inside yard 0 0 0 0 0 0

- Piped water on community stand: 0 0 0 0 0 0
distance < 200 m from dwelling
- Piped water on community stand: 0 0 0 0 0 0
distance > 200 m from dwelling
- Borehole 0 0 0 0 0 0
- Spring 0 0 0 0 0 0
- Rain-water tank <total> <cost> <total> <cost> <total> <cost>
Note: Total number should appear in IDP,
and cost in future budgeted capital hous-
ing programmes
12 Free basic service (FSB) provision:
- Quantity (number of households af- 4 661 4 634 households 5 350 households
fected) households
- Quantum (value to each household) 5 9317 kl 110 953 kl 76 549 kl
R182 096,00 R325 992.25L R247 915 00

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Annual Report v2.indd 445
2006/07 2007/08 2008/09

Reporting Level Detail Total Cost Total Cost Total Cost

Note: Provide details of how many house-
holds receive the FBS provision, and the
average value it means per household.
Describe in detail the level of free basic
services provided.
13 Type and number of grants and subsidies R (000s) R (000s) R (000s)
received:
<list each grant or subsidy separately> n/a n/a n/a n/a n/a n/a
Note: Total value of specific water grants
actually received during the year to be
recorded over the five quarters - Apr to
Jun last year, Jul to Sep, Oct to Dec, Jan
to Mar, Apr to Jun this year
14 Total operating cost of water distribution na na 1 030 Operational expen- Not yet available Budget is opera-
function queries completed diture tional expenditure
R50 854 000,00 R65 038 000,00
Key Performance Performance During the Year, Current Target Current Target Current Target
Area Performance Targets Against Actual
Achieved and Plans to Improve Per-
formance
Key performance area 1. Reduction of UAW n/a 30% n/a n/a 28% n/a
2. Increase operational staff produc- n/a 80% n/a n/a 90% n/a
tivity n/a 80% n/a n/a 90% n/a
3. Better usage of telemetery n/a 50% n/a n/a 100% n/a
4. Ensure quality of water, meet SANS n/a 50% n/a n/a 100% n/a
1 standards n/a 100% n/a n/a 100% n/a

City of Tshwane Annual Report 2008/2009 //

5. Achieve and maintain network pres- n/a 50% n/a n/a 90% n/a
CHAPTER FIVE: Functional Statistics Analysis

sure between 4 and 6 bars n/a 80% n/a n/a 90% n/a
6. Ensure adequate bulk water supply n/a 70% n/a n/a 90% n/a

pg 445
to SWA service delivery area n/a n/a n/a n/a n/a
7. Improve response time n/a n/a n/a n/a

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 MUNICIPAL LEVEL REPORTING

Annual Report v2.indd 446

pg 446
Five-year Comments and /or

//
Programmes/ Proj- 2006/07 2007/08 2007/08 2008/09
Municipal KPA Indicators programme corrective actions
ects/Activities achievement target achievement target
target where applicable

Support good governance Legislative compliance % compliance with all relevant

through effective and ef- legislation, policies and
ficient corporate manage- procedures
ment policies and practices
Sustainability manage- % increase in revenue col-
ment lection
Support corporate human Employee wellness HIV and Aids Awareness and All employees 2,74 All employees
resource management VCT:
policies and practices 0 0 8

City of Tshwane Annual Report 2008/2009

Number of peer educators/
HIV and Aids counsellors
Number of staff who have 0 +-30 We hope the number
CHAPTER FIVE: Functional Statistics Analysis

undergone VCT will increase

Develop culture change Level to which individual We are in the process
framework; cascade performance agreements has of setting up a perfor-
individual performance been cascaded mance management
agreements system
HRD % implementation of skills 100% 80%
development plans
% improvement in skills Improve To set up a measure-
capacity organisational ment system
skills capacity
by at least 5%
per annum

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Annual Report v2.indd 447
MUNICIPAL LEVEL REPORTING

Five-year Comments and /or

Programmes/ Proj- 2006/07 2007/08 2007/08 2008/09
Municipal KPA Indicators programme corrective actions
ects/Activities achievement target achievement target
target where applicable

Number of employees trained 135 274

% implementation of ap-
proved Skills Development
Plan, Career Management
Plan and competency frame-
work
Employee grievances % of employee grievances
finalised
Increase participation and BBBEE % of BBBEE vendors used
broaden the contribution in
growing the city’s economy
through the development
of SMME’s, cooperatives,
the informal sector and
the role of black people,
women and the youth
Improve administrative R cost of administrative
efficiencies services to total operating
expenditure

City of Tshwane Annual Report 2008/2009 //

CHAPTER FIVE: Functional Statistics Analysis

pg 447

2009/06/04 09:41:15 AM
 CITY SCORECARD

Annual Report v2.indd 448

Programmes/ Five-year 2006/07 2007/08 Comments and/or

pg 448
Strategic Key Performance Key Performance Indi- 2007/08 2008/09
Projects/ Activi- programme achieve- achieve- corrective actions

//
Objective Area cator target target
ties target ment ment where applicable
Buildings and facilities Number of City of Tshwane
management buildings compliant with
building regulations as a
proportion of total City of Tsh-
wane owned buildings
Fleet maintenance R operating cost per Lease 38 38 44 44 0
fleet vehicle 116
Owned:

116
The goal is to maintain the cost within CPIX (Consumer Price Index)

City of Tshwane Annual Report 2008/2009

CHAPTER FIVE: Functional Statistics Analysis

2009/06/04 09:41:19 AM
 Financial reporting (also see sheet duplicated in Excel on finances) -

Annual Report v2.indd 449

Analysis of the function:
1. Debtor billings: Number and value of monthly billings: R (000s) R (000s)
Function - <list function here eg: water, electricity etc> <total> <total> <total> <total>
Number and amount billed each month across debtors by function (eg: water, electricity etc): <number> <value> <number> <value>
Water and Sanitation Billing 06/07 Act 07/08 Est
Number R(000’s) Number R(000’s)

July 38 842 4 937 42 423 6 323

August 39 060 4 830 42 769 6 336
September 39 186 5 120 43 012 7 188
October 39 394 5 507 43 123 6 866
November 40 124 5 804 43 369 6 417
December 40 268 5 416 44 188 6 866
January 40 551 5 796 44 251 7 439
February 40 681 5 734 44 572 5 818
March 41 492 5 880 45 112 6 331
April 41 857 6 338 45 288 6 266
May 42 077 5 786 45 454 6 803
June 42 175 5 590 45 913 6 138

2. Debtor collections: Value of amount received and interest: R (000s) R (000s) R (000s) R (000s)
Function - <list function here eg: water, electricity etc> <total> <total> <total> <total>

• Value received from monthly billings each month and interest from the previous month across debtors by <received> <interest> <received> <interest>
function (eg: water, electricity etc)
Received Interest Received Interest
Water and Sanitation 06/07 Act 07/08 Est
Monies Collected R(000’s) R(000’s) R(000’s) R(000’s)

July 3 913 1 064 4 075 966

August 4 507 1 082 5 263 975
September 4 122 1 098 4 427 1 004
October 4 130 1 113 4 426 1 032
November 4 204 1 135 5 206 1 063
December 3 201 1 164 3 690 1 090

City of Tshwane Annual Report 2008/2009 //

January 4 813 1 192 4 775 1 416
February 4 903 1 213 5 197 1 454
CHAPTER FIVE: Functional Statistics Analysis

March 4 958 1 228 3 906 1 507

April 3 835 1 253 6 805 1 542

pg 449
May 4 638 1 292 4 743 1 573
June 3 833 1 326 5 237 1 605

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 Analysis of the function:

Annual Report v2.indd 450

Note: Create a suitable table to reflect amount received from that month’s billings plus interest

pg 450
from the previous month across debtors by function

//
3. Debtor analysis: Amount outstanding over 30, 60, 90 and 120 plus days: R (000s) R (000s)
Function - <list function here eg: water, electricity etc>
• Total debts outstanding over 30, 60, 90 and 120 plus days across debtors by function (eg: <total> <total>
water, electricity etc)
06/07 Act 07/08 Est
Water and Sanitation R(000’s) R(000’s)
Debtors Outstanding – Age Analysis

Domestic debtors – Current 5 079 5 617

• 30 Days 4 390 4 837
• 60 Days 4 583 4 294
• 90 Days+ 138 985 169 685

City of Tshwane Annual Report 2008/2009

Commercial debtors – Current 1 027 947
• 30 Days 421 327
• 60 Days 454 264
CHAPTER FIVE: Functional Statistics Analysis

• 90 Days+ 4 278 5 906

Government debtors – Current 648 213

• 30 Days 804 338
• 60 Days 626 851
• 90 Days+ 3 599 6 692
Note: Create a suitable table to reflect debts outstanding over 30, 60, 90 and 120 plus days
across debtors by function
4. Write off of debts: Number and value of debts written off: R (000s) R (000s)
- Total debts written off each month across debtors by function (eg: water, electricity etc) <number> <value> <number> <value>
Note: Create a suitable table to reflect write offs each month across debtors by function
5. Property rates (Residential): n/a R (000s) R (000s)
- Number and value of properties rated <number> <value> <number> <value>
- Number and value of properties not rated <number> <value> <number> <value>
- Number and value of rate exemptions <number> <value> <number> <value>
- Rates collectible for the current year <value> <value>

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Annual Report v2.indd 451
Analysis of the function:
Reporting Level Detail Total Total
6. Property rates (Commercial): n/a R (000s) R (000s)
- Number and value of properties rated <number> <value> <number> <value>
- Number and value of properties not rated <number> <value> <number> <value>
- Number and value of rate exemptions <number> <value> <number> <value>
- Rates collectible for the current year <value> <value>
7. Regional Service Council (RSC) levies: n/a R (000s) R (000s)
- Number and value of returns <number> <value> <number> <value>
- Total establishment levy <value> <value>
- Total services levy <value> <value>
- Levies collected for the current year <value> <value>
8. Property valuation: n/a
- Year of last valuation <year> <year>
- Regularity of valuation <cycle> <cycle>
9. Indigent Policy:
- Quantity (number of households affected) <total> <total>
- Quantum (total value across municipality)
06/07 Act Debt outstanding 07/08 Est Debt oustanding
Water and Sanitation Number R000’s Number R000’s

Indigents 4 634 9 439 5 439 8 342

10. Creditor payments: R (000s) R (000s)
Note: Create a suitable table to reflect the five largest creditors individually, with the amount
outstanding over 30, 60, 90 and 120 plus days
Major Creditors

City of Tshwane Annual Report 2008/2009 //

Randwater 6 705 30 days 7 337 30 days
CHAPTER FIVE: Functional Statistics Analysis

Davis and Deale 666 60 days 668 60 days

MicroMega Revenue 976 60 days 975 60 days

pg 451
Swift Distributers 998 60 days 1 013 60 days
Valvomatic 320 60 days 318 60 days

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