“Every summit that we climb leads to a realisation that there are many more summits yet to ascend.”

Nelson Mandela

Building on a legacy of success.

2011/2012 Performance Highlights

City of Johannesburg

2

City of Johannesburg

Building on a legacy of success

Executive Summary

Annual Performance Report for the period 1 July 2011 to 30 June 2012

3

Johannesburg is the most advanced commercial city in Africa and the engine-room of the South African and regional economy. It is a city with a unique, African character. A city-on-the-move with world-class infrastructure in the fields of telecommunications, transportation, water and power and with globally competitive health care and educational facilities.

It is also a city of contrasts – home to both wealthy and poor; residents and refugees; global corporations and emerging enterprises. True to its mining roots it is a city that continues to attract new people, constantly in search of a better life and a place to settle, to live, to learn and to earn.

Johannesburg is home to a population of approximately four million people, growing at a rate of 1.3% per annum. This population growth is largely driven by net migration into the city from provinces and towns in the rest of South Africa. There are about 1.4 million households with an average household size of about three persons.

The City of Johannesburg reports back to its residents and stakeholders on an annual basis. This report reflects the entire spectrum of the City’s activities – its achievements and successes, but also its challenges and the actions designed to overcome them. It chronicles the activities of a critical year in Johannesburg’s recent history and identifies opportunities for future actions.

Through the Annual Report the City meets the legislative requirements set out in the Municipal Finance Act and the Municipal Systems Act. It ensures that there is regular, impartial feedback to all stakeholders, thus strengthening accountability and transparency. The 2011/12 Annual Report covers the performance of the City of Johannesburg for the period 1 July 2011 to 30 June 2012.

“… the time has come for the City to build on the foundation that I have outlined to change the City’s course.”

Overview:

The 2011/12 financial year was a defining year for the City of Johannesburg during which it was able to build on the legacy of success laid down by the previous administration. The local government elections held in May 2011 heralded in a period of transition to a new elected leadership, bolstered by the experience gained during the first phase of democratic local governance in the city.

This continuity in leadership and vision enabled the City to start building on the legacy of the previous 10 years without any delays, to accelerate a number of initiatives that were already in the pipeline and to commence a number of ground-breaking new initiatives that will become the hallmark of the five-year term of the new administration.

A solid foundation was laid. The time was opportune to build on these achievements and to take Johannesburg to a higher level.

We commit ourselves to embracing the important position of our city on the African continent;that we are a city that embraces its African identity and represents the spontaneity and vibrancy of our

Executive Mayor, Councillor Mpho Parks Tau

diverse cities across this continent.

4

• TheprocesstocreateaunifiedCitygovernancemodelwascompleted.Morethanacenturyofspatialplanning designed to entrench privilege and inequality is being turned around in favour of an equitable and united city with equal access to facilities, infrastructure and economic opportunities.

• TheCity’sfinanceswerestabilisedinthemidstofthemostsevereglobalrecessionindecades.Joburgledthe country in terms of the quality of its financial reporting, moving from a qualified audit position to a report without qualifications.

• Thecoverageofresidentsreceivingbasicserviceswassignificantlyextended,withalmost95%ofJohannesburgers now receiving quality water, reliable electricity and decent sanitation.

• TheinnercityofJohannesburgwasrevitalisedinpartnershipwiththeprivatesectorandcivilsociety.Through strong action taken against urban crime and decay the city has significantly improved the quality of the urban environment, reduced crime levels and created a strong basis on which to attract new investments.

• TheCitypioneeredtheconceptofMunicipalBonds,receivinganoverwhelmingpositiveresponsefromtheinvestment community to successive issuances.

• Johannesburghasacquiredaglobalreputationasadesirabledestinationfortrade,tourismandinvestmentand a proud and successful host of major events such as the 2010 FIFA™ World Cup, the World Summit on Sustainable Development and a range of events on the global sporting and cultural calendars.

• TheCityestablishedanexemplaryrecordofefficientandaccountableadministrationwithstrongparticipation by communities in the decision-making process.

• Imaginativestepsweretakentocreateasustainableenvironmentthrougha“greeningofthecitycampaign”, the planting of more than 200 000 new trees, providing grass to dusty sports fields and public spaces and the introduction of the concept of Xtreme Park Makeovers.

• TheCitylaunchedandcompletedkeyflagshipprojectssuchastheNelsonMandelaBridge,ConstitutionHill,NewtownandtheBrickfieldsHousingdevelopment.Theseprojectsnowdefinethelandscapeandskyline of the modern new city.

• TheCityledthewayintheprovisionofmixedhousingdevelopments,suchasCosmoCityandLufhereng.

• SouthAfrica’sfirstBusRapidTransitSystem–Rea Vaya – was introduced to provide residents with safe, fast and affordable choices of transport.

A number of significant events that occurred during the preceding five years had an impact on Joburg’s financial position in the 2011/12 year:

• theneedtomeetnationaldeliverytargetsandprovideadequateinfrastructurefortheCity’shostingofthe2012 FIFA™ World Cup placed additional demands on expenditure;

• theglobaleconomicdownturnhadanimpactoneconomicactivityacrossallsectorsandaffectedtheability of customers to pay for City services;

• Joburg’smigrationtoanew,unifiedbillingsystemencounteredimplementationproblemsinitsearlystages.

However, the City of Joburg maintained a strong and robust financial position. This healthy situation was achieved through a strong political commitment to keep the City’s finances on track; a concerted focus on financial management; and a commitment to innovation and increased efficiencies in the City’s operations.

At the conclusion of the financial year Joburg maintained a healthy cash surplus and was able to meet all of its short-term operating liabilities on an ongoing basis.

5

In its comprehensive report on the City’s annual financial statement, the Office of the Auditor General identifies key issues that need to be addressed and make vital recommendations. Joburg is committed to attend to the issues that were raised and ensure its management of the City’s financial affairs meet the highest standards.

“We will be a sustainable, liveable and resilient society by 2040. To achieve all of this, we need a strong partnership across all spheres of government, a partnership with organisations of civil society, with business and local communities.”

A fresh mandate from the people of Johannesburg

In May 2011, voters across South Africa went to polling stations to participate in the country’s third democratic local governance elections. Voters in Johannesburg returnedtheAfricanNationalCongresswithafreshmandatetoimplementitselectoral mandate in South Africa’s premier city.

In his acceptance speech in the City Council on 26 May 2011, the newly elected Executive Mayor, Councillor Mpho Parks Tau, called on residents to unite behind a common vision of accelerated growth for the City.

“Joburg deserves only the best efforts from everybody, whether they are in the political leadership, in management, in all positions within our administration and across the spectrum of our partners in business, labour, the faith-based community and civil society. “Joburg is the largest and most diverse city in the country and as the economic and cultural hub of our country, it plays a pivotal role in the direction our nation will grow in the future,” Mayor Tau said.

With a clear mandate from the people of Johannesburg, the elected leadership, led by a dynamic new Executive Mayor and Mayoral Committee, set out to build on the legacy of success achieved during the previous terms of office.

The City of Joburg immediately introduced three major initiatives that defined and dominated the delivery agenda during the 2011/12 financial year.

• Itinitiatedacity-wideconsultativeprocesstoreviewitslong-termpriorities,strategies,perspectivesandplans – culminating in the launch of the Joburg 2040 Growth and Development Strategy in October 2011.

• TheCityembarkedonacomprehensiveandthoroughredesignofitsinstitutionalarrangementstomeetthe demands of a modern and growing city and to ensure the seamless implementation of the Joburg 2040 GDS.

• Itlaunchedanacceleratedservicedeliveryprogrammetoaddressparticularchallengesduringthefirst90daysofthetermofthenewlyelectedadministration.This programme of action set the agenda for the City’s activities during the remainder of the 2011/12 financial year through a number of clearly defined focus areas:

• turnaroundoftheCity’sbillingsystemandenhancedrevenuecollection; • prioritisethecallcentretobeefficientandachieveimprovedturnaround

times; • addressthequalityofroads,fixthepotholes,repairbrokentrafficlightsand

clean out culverts and stormwater drains; • renderbasicservicesininformalsettlementssuchaswater,sewer,waste

removal and electricity; • maintenanceofcouncilownedfacilities,hostels,housingestates,oldage

homes, parks and sport and recreation facilities; • improvecleanlinessinthecityincludingremovingandrehabilitatingillegal

dumping sites;City Manager, Trevor Fowler

Executive Mayor of the City of Joburg, Mpho Parks Tau

6

• extendtheBusRapidTransitsystemtoensurethatcommunitieshaveaccesstosafe,affordableand reliable public transport;

• ensureeffectiveandefficientby-lawenforcement; • improvethequalityofinteractionwithresidentsandclientsinthespiritofBathoPele; • ensurethatmanagementandstaffareheldaccountableforthequalityoftheirservicedelivery; • focusonfiscalresponsibilityandhighstandardsofprudentfinancialmanagement.The achievements of the City during this period of accelerated service delivery were clearly defined and measurable. The short time-frames instilled a sense of urgency in the organisation to achieve the desired outcomes within a brief period. Most of the delivery targets were met and exceeded.

One of the priorities entailed addressing service delivery challenges such as deteriorating services and roads infrastructure, and lack of maintenance in hostels. The accelerated programme delivered by upgrading more than9kmofwaterandsewernetworksinFourways,OrangeFarmandAlexandra;repairingmorethan6000watermeters;maintaining96%ofpubliclighting;patchingmorethan18000potholes;cleaningmore than 100km of storm water pipes; and conducting cleaning and repairs at Dube, Diepkloof and Meadowlands hostels.

City departments, regions and municipal entities collaborated through an integrated approach to deal with service delivery challenges. This seamless collaboration was most notable in the successful joint operations to improve compliance with by-laws in hotspot areas across all regions.

The success of the accelerated drive was duly noted and documented through the positive feedback received from residents and stakeholders, but also through positive news coverage reflected in the media. According to a survey by Media Tenor South Africa, positive media coverage for Joburg improved from 73% in June 2011 to83%bytheendofSeptember.

The achievements on the short-term delivery programme indicate that the new mayoral term and political leadership presented the City with an opportunity for renewed energy. It confirmed the principle of “less is more”, focusing on the basics that will make an impact. The City’s leadership, both politically and administratively, acted on the opportunity to turn around the organisational performance culture and approach to service delivery.

“…we must act now to ensure Johannesburg, in 2040, will be a world class African city that is resilient, sustainable and liveable.”

Johannesburg 2040 GDS – a promise for the future

InhisinauguralBudgetSpeechinJune2011,theExecutiveMayorofJohannesburg,CouncillorMphoParksTau, announced that the City would embark on an inclusive and comprehensive process to develop a revised Growth and Development Strategy to guide development over the next three decades.

The Joburg 2040 GDS envisions a Johannesburg that is:

• awelcomingcitythatprovidesahighqualityoflifeandmaximisesthehumanpotentialofallwholiveandwork in it;

• asustainablecitywhichprotectsitsresourcesforfuturegenerations,andacitythatisbuilttolastandoffers a healthy, clean and safe environment;

• acitywithaneconomythatgrows;whereanyonecanmakeit;whereitiseasytofindworkandmake a living;• acitythatlistenstoitspeopleandthatissensitivetotheneedsofitsresidents;• acitythatisresponsible–andacceptsresponsibility–forimprovingthelivesofallwholiveinthecity.

7

An extended process of research, analysis, reflection and stakeholder engagement culminated in the launch of the City’s Joburg 2040 Growth and Development Strategy in October 2011. The GDS is defined as the compass by which the City and all those who work within it will steer themselves to achieve a shared vision:

Johannesburg – a world class African city of the future – a vibrant, equitable African city, strengthened through its diversity; a city that provides real quality of life; a city that provides sustainability for all its citizens; a resilient and adaptive society.

The Joburg 2040 GDS is an aspirational strategy that defines the type of society the City aspires to achieve over the next three decades. It restates the City’s resolve in confronting the injustices and inequities of the past, working towards a democratic, non-racial, non-sexist and just city while continuously resolving present and future challenges as they emerge.

“Good governance…underpins everything the City does.”

Public participation

The new term of office is characterised by the extensive involvement of citizens in the City’s planning processes. This was highlighted during the outreach process that led to the drafting and adoption of the Joburg 2040 GDS. To ensure a structured implementation of the process, the following approach was adopted:

• Thematic weeks – addressed the nine themes identified within this Joburg 2040 Strategy. Thematic weeks included round table discussions and conversations with stakeholders. The general public was invited to comment on the topics and fully participate in the process.

• Ward-level participation – this incorporated the voices of local communities and ran parallel to the nine thematic weeks.

• A GDS conference – which included the participation of leading global, regional and local experts. This provided a platform to discuss critical issues and establish mechanisms through which they could best be addressed.

• Social media – Joburg pioneered the use of online social media platforms such as Facebook and Twitter to allow citizens to participate in the strategy-making process of a South African city.

• Suggestion boxes – The City reached out to its diverse citizenry through suggestion boxes and live participation sessions in neighbourhoods.

• A GDS launch – attended by the City’s key stakeholders, serving as the culmination of the outreach process.

The broad-based consultative process that led to the adoption of the GDS 2040 confirmed the City’s approach to strengthen community participation in decision making. The document reflects the collective wisdom and aspirations of the diverse spectrum of stakeholders in Johannesburg and gained wide-spread acceptance because of the inclusive nature of the process.

This approach is increasingly becoming a defining feature of democratic local governance in Johannesburg and is also evident in the regular IDP processes and the consultations that lead up to the annual medium-term budgets.

8

The Integrated Development Plan (IDP) – the blueprint for action

This year the City adopted an approach to the IDP and budget consultation process to build on the enthusiasm of the citizens and sustain the momentum of the community-driven strategy formulation process. This ensured that stakeholders and communities engage with the draft 2012-16 IDP and 2012/13 budget and communicate their views and aspirations prior to the approval of plans by Council. A series of regional engagements were held in all seven regions with targeted stakeholders led by the Executive Mayor and the Speaker of Council.

“We want to build a City that is fundamentally different from what it was before.”

Institutional review:

During the 2011/12 financial year, the City decided to conduct a comprehensive review of existing institutional arrangements and recommend the adoption of an amended model of governance.

The iGoli 2002 model comprised new political governance structures, a core administration, 11 regional administrationsand15utilitiesoragenciesthatoperatedasservicedeliveryagentsonbehalfoftheCity.Minor amendments to this model were introduced in 2006.

The institutional experience of a decade of democratic local governance, as well as the realities of a dynamic, growing urban environment, prompted the City to undertake a review of its institutional model. A number of design principles and requirements were considered during the review of the city’s organisational structure, such as:

• alignmentandsynergybetweentheCity’sGrowthandDevelopmentStrategy,itsIntegratedDevelopmentPlan and its organisational design;

• strengthenedandenhancedinterfacebetweentheexecutiveandtheadministration;• objectivedesignoptionsthatarenotinfluencedbyshort-termorincumbent-drivenneeds;• astrongerroleforthemembersoftheMayoralCommitteetooverseetheactivitiesofthedepartments

within their portfolios;• greaterclarityabouttherelationshipbetweentheCity–astheshareholder–andtheboardsofmunicipal

entities to ensure clear policy direction and priorities for implementation. “… we want to build a high-performing metropolitan government that is responsive and accountable to its residents.”

Organisational management

The structure of the City administration comprises core administration departments as well as municipal entities (MEs) that operate as service delivery agents on behalf of the City.

Johannesburg’s institutional arrangements have been evolving since the transformation of local government in 1994.Thecurrentstructureisbasedona“unicity”institutionalstructure,initiatedaftertheDecember2000local government elections

Changes to institutional arrangements have always been prompted by the City’s quest to continually enhance service delivery and overall governance and to respond to emerging needs of its communities.

The objective of the institutional review was to determine whether the existing models meet the demands of a modern, globally-competitive city. The review investigated areas of duplication, clear lines of accountability, opportunities to harness economies of scale and opportunities to improve efficiency and effectiveness.The result was the introduction of a new model of municipal administration that built on the successful experiences of the past but also enables the City to proactively meet the challenges related to a global city.

The new institutional design is underpinned by the City’s Performance Management System as the primary mechanism through which organisational and individual performances of employees are improved.

9

10

The performance of City officials employed in core departments and municipal entities are guided by a comprehensive legislative framework and overseen by a number of key oversight bodies which represent the interest of the residents and stakeholders of Johannesburg. This includes:

• TheJohannesburgRiskandAssuranceServices(JRAS)whichplayaninternalperformanceauditingroleandmeasure the results achieved by executive management.

• TheJohannesburgGroupAuditCommittee(JPAC)–anexternalbodycomprisedofindependentexpertsand providing impartial recommendations on performance to the Mayoral Committee.

• TheExecutiveMayorandMayoralCommitteewhichoverseestheperformancesoftheexecutivemanagement and heads of departments.

• CouncilandSection79Committees–elected,multi-partyrepresentativeswhoperformanoversightroleto measure the performance of the municipality.

• Communities–whoparticipateincivicaffairsthroughtheannualIDPprocessandcomplementtheroleofelected councillors through ward committees and regional people centres.

“…development is not about the delivery of goods to a passive citizenry, but is about active involvement and growing empowerment of communities in the utilisation of resources.”

Ward participation

Following the establishment of ward councillors’ offices, a process was started to elect ward committee members to support councillors. Ward committee elections were held in April 2012 and allowed residents an equal opportunity to nominate candidates. Ward committees enhance participatory democracy and are establishedintermsoftherequirementsoftheLocalGovernmentMunicipalStructuresAct.

Residents and stakeholders will increasingly gain a greater say in determining priorities within their own wards and living areas and ward-based planning will strengthen citizen-participation in the decision-making processes.

The City is currently in the process of rolling out 130 ward plans. The main objectives of these plans are:

• todeepenlocaldemocracy;• toenhancedevelopmentalplanningatwardlevel;• toempowercouncillorsandcommunities,generateideasandparticipatemeaningfullyindecisionmaking;• tocontributetoamoreequitableandspatiallyintegratedCity.

The City’s comprehensive communication strategy highlights the importance of communication with all stakeholders and to inform citizens on progress made in service delivery. The objectives of the City’s communications strategy during 2011/12 were:

• astrongfocusonpositivenewsaboutprogressinJohannesburgasanimportant“newsmaker”;• acreativemixtureofformats–mediabriefings,statements,sitevisits,thoughtleadership;• anemphasisonvisualelementsforphotoopportunitiesandtelevision;• internalcommunicationtocoincidewithexternalcommunication;• greaterutilisationofsocialmediaandtheCoJwebsite;• directcommunicationtocommunities/thewardandstreetlevelthroughimbizosandcommunitymedia.

The 2010 Customer Survey Satisfaction Index for communication efficiency shows a consistent improvement since 2006. In promoting Johannesburg as a world class African city, the key achievements for the 2010/11 period included sustaining marketing campaigns to promote a positive image of the CoJ to local and international stakeholders; coordinating exhibitions and displays to market the City during the Joburg Easter Festival; and posting key messages on billboards with marketing messages.

11

Public consultation and outreach process

The City of Johannesburg recognises that development is not about the delivery of goods to a passive citizenry, but is about active involvement and growing empowerment of communities in the utilisation of resources.

A series of meetings were held during the year in all seven regions involving various stakeholders, including women’s groups, people with disabilities, the business sector, civil society and the youth. A number of submissions were received from communities and stakeholders and these have been factored into the final budget and revised IDP in line with the Joburg 2040 Strategy outcomes.

“In taking these next steps, we need to build credibility with our stakeholders and demonstrate that we care about their needs. The City has the responsibility to focus on “lifting the bar” and taking service delivery to the next level and improve operational efficiencies. … the City needs to allocate and utilise its resources in the most efficient manner possible to achieve its strategic objectives, as well as fulfill the requirements of transparency and accountability. This requires consensus on how to realise this vision.”

Governance model and structures

The City of Johannesburg’s Governance structure is based on the principles of the separation of powers and consists of an elected legislature presided over by the Speaker of Council and an executive consisting of an elected Executive Mayor chairing a Mayoral Committee. The administrative arm is led by the City Manager supported by heads of departments and municipal entities that are accountable to both Council and the Mayoral Committee.

Theobjectivesofamunicipality,asdefinedinSection152oftheConstitutionoftheRepublicofSouth Africa are:

• toprovidedemocraticandaccountablegovernmentforlocalcommunities;• toensuretheprovisionofservicestocommunitiesinasustainablemanner;• topromotesocialandeconomicdevelopment;• topromoteandsafeandhealthyenvironment;and• toencouragetheinvolvementofcommunitiesandcommunityorganisationsinthemattersoflocal

government.

InthelegislaturetheoversightfunctionsareexercisedthroughtheactivitiesofSection79Committees.Citydepartments submit quarterly progress reports to these committees which are then discussed and submitted to Council. Individual councillors also hold the executive to account and can introduce motions to ensure debate on critical issues.

The Speaker of Council is the head of the legislative arm and presides over meetings of councils. The Speaker’s functions are supported by the Chair of Committees, the Chief Whip of Council and the chairpersons of the Section79Committees.

The Executive Mayor is accountable for the strategic direction of the City and takes political responsibility for policies and the implementation of programmes and initiatives. He is also responsible for the identification and prioritisation of community needs, drafting strategies to address such needs and oversee the delivery of the City’s services and programmes.In Johannesburg the Executive Mayor is assisted by a Mayoral Committee comprising ten members with executive responsibility for departments and entities, namely: Corporate and Shared Services; Housing; Environment, Infrastructure and Services; Transport; Development Planning; Community Development; Health and Social Development; Finance; Economic Development; and Public Safety.

12

13

To strengthen governance structures and promote better coordination and accountability, the City, in the 2011/12 financial year, established Mayoral sub-committees on service delivery. These sub-committees are responsible for: sustainable services; economic growth; human and social development and good governance and their primary functions are to:

• identifyprioritymulti-sectoralprogrammesforimplementation;• ensurecoordinationandalignmentofservicedelivery;• provideguidanceandoversightintheimplementationofprogrammes;and• discussreportsfromtheadministrationanddepartmentsandmakerecommendationstotheMayoral

Committee.

The City Manager is the head of the administration and accounting officer for the City of Joburg. As the chief executive his role is to lead, direct and manage the administration of the City and is primarily responsible for:

• theformationanddevelopmentofaneffectiveandaccountableadministration;• themanagementofservicedeliveryinthecity;• themanagementoftherelationshipbetweenthelegislature,theexecutiveandtheadministrationandthe

implementation of decisions taken by elected representatives;• responsibilityandaccountabilityforallincome,expenditure,functionsandactivitiesofthemunicipality. “We strive to be an organisation whose core business is service excellence in partnership with its stakeholders towards the realisation of our strategic objectives.”

Service delivery achievements

During the 2011/12 financial year Joburg introduced a new cluster approach to municipal governance. The City’s departments and entities are organised into four clusters – devoted to economic growth, governance, human and social development and sustainable services.

The implementation of the accelerated service delivery programme in the first quarter of the financial year set the agenda for the City of Joburg’s performance during the remainder of the period. Among the outstanding achievements of the past year are:

Improved access and quality of public servicesThe City upgraded water and sewer networks in a number of areas including Fourways, Orange Farm and Alexandra;repairedmorethan6000watermeters;maintained96%ofpubliclightingandcleanedmorethan100kmofstormwaterpipes.Theelectrificationofhouseholdsexceededthe5000annualtarget,whilemorethan 1 000 sanitation services were upgraded to higher levels.

Building safer communitiesPublic safety was enhanced through the installation of over 4 000 street lights in priority areas. This complemented the implementation of the City Safety Strategy and Crime Prevention Programme, which contributed to the reduction in the levels of priority crimes within Johannesburg.

The safety of communities were strengthened through disaster management initiatives that included disaster risk assessments, the development of mitigation measures and the empowerment of communities in informal settlements, where there are high risks of fires and other disasters. The communities of Denver, Zandspruit, George Goch, Alexandra, Alexandra Women Hostel and Slovoville were prioritised in this financial year.

Rolling out broadband infrastructureJohannesburg is leading the country with the roll-out of modern IT infrastructure designed to significantly reduce the cost of doing business within the city, but also to bridge the digital divide and provide communities, schools, hospitals and households with improved access to information.

14

Ensuring healthy communitiesMorethan3.2millionpatientsreceivedfreediagnosis,treatmentandcareatthe80primaryhealthcarefacilities situated in Johannesburg. Almost every child under the age of one year has been immunised against preventable diseases and the Jozi Ihlomile initiative is serving as a model for community-based treatment for HIV/Aids across the country.

Caring for the mind and the soulThe cultural experiences of Johannesburg residents were enriched with the opening of the ultra-modern SowetoTheatre–a2010FIFA™WorldCuplegacyproject–andthereopeningoftheJohannesburgLibrary as a centre of excellence and learning.

Reshaping transport optionsThe City’s flagship project – the Rea VayaBusRapidTransitnetwork–isprovidingmorethan42000passengers with a safe, fast and affordable transport alternative every day. Through ongoing improvements to road and transport infrastructure, the City is supporting economic growth and development and improving the quality of life of residents.

Specific attention was devoted to road safety, especially following the tragic deaths of children in areas such as WatervalEstate(Westbury),LenasiaandMeadowlandsExtension7.Roadsafetyeducationwasconductedandtraffic calming measures implemented.

“We are now poised to move the City on to a new developmental growth path.”

The economic outlook

The City of Johannesburg is a significant role player in the economy of Gauteng and of South Africa as a whole. While budgets and strategies are focused on addressing Johannesburg’s developmental challenges, the City is cognisant of the impact of a stagnant global economy on Johannesburg.

South Africa’s robust financial institutions, as well as its relatively moderate fiscal and external debt, allowed fiscal flexibility to withstand the impact of the global downturn to a large degree. However, with the Eurozone being South Africa’s largest trading partner, the prevailing financial pressures on the continent have reduced demand for the country’s goods, impacting negatively on national exports and ultimately the trade balance, resulting in increasing uncertainty.

With the South African economy intrinsically linked to the business, manufacturing and financial activities of Johannesburg, the impact of a struggling global economy is being felt locally and reflected in the following:

• ThecurrenthouseholddebttodisposableincomeinJohannesburgis75%.

• SlowgrowthinemploymentasreflectedbytheunemploymentrateinJohannesburgof24.5%,especiallyamongst the youth.

• 50%ofhouseholdsinGautengearnlessthanR4000permonth,whichreflectsthevulnerabilityofthelower/middle income groups in Johannesburg.

• Therisingcostoffuelhasarippleeffectonanumberofcommoditiesandthisresultsinconsumershavingless money to spend on household goods and services.

• Realhousepriceshavedeclinedforfourconsecutiveyearssince2008andthismayimpacttheCity’sratesbase in future.

Johannesburg’s ability to proactively create a better life for the poor depends primarily on sustainable economic growth and the distribution of the benefits of such growth. The global economic turndown since 2006 has affected the city’s economic growth as indicated in the graph below. Towards 2014 the Gross Domestic Product is anticipated to grow positively at a projected average rate of above 3% per annum as the city’s economy recovers with the rest of the world.

15

Healthy state of finances and credit strength

The past five financial years were characterised by a number of significant events that had an impact on the financial position of Johannesburg:

• TheCity’shostingofthe2010FIFA™WorldCupwhichplacedadditionaldemandsonexpenditure–especially with regards to infrastructure – to meet national delivery targets.

• Theglobalrecessionanditsimpactoncustomerpaymentlevels.

• Themigrationtoaunifiedbillingsystemwhichhasresultedinongoingimplementationproblems.

The cumulative impact of these factors resulted in a declined liquidity position.

However, the City of Joburg maintained a strong and robust financial position at the end of the financial year with a cash surplus at a level where the City is able to meet all of its short-term operating liabilities on an ongoing basis.

This healthy situation was achieved through a strong political commitment to keep the City’s finances on track; a keen and dedicated focus on finance; a commitment to innovation and increased efficiencies in the City’s operations.The cash position of the City, which is currently above R2 billion, improved significantly in the first and second quarters of the financial year. This can be primarily attributed to improved levels in the collection of revenue followingtheintroductionoftheRevenueStepChangeinNovember2011.

The improvement in the collection levels has positively impacted the cash management strategies of the City.

GDP-R Total GrowthGP – City of Johannesburg Metropolitan Municipality

2005 2006 2007 2008 2009 2010

4.87%

6.31%

5.49%

4.14%

2.58%

-1.73%

7.0%

6.0%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%

-1.0%

-2.0%

-3.0%

Source: Global Insight, 2010

Growth in GDP in Johannesburg since 2005

16

Bytheendofthefirstquarterofthe2011/12financialyear,theCityhadonlyissuedR1.1billioncommercialpaper compared to paper to the value of R2.7 billion issued in September 2010. Despite the reduced utilisation of bridging facilities, the City succeeded in maintaining higher cash balances than in the previous year.

Johannesburg’s debt profile is in line with the annual funding plans approved by Council. The total long-termdebtisR12.023billion–comprisedofR7.451billionbondissuanceandR4.57billionlong-termloans.Following a period of intensive investment in capital infrastructure the City took a strategic decision to limit external borrowings to an annual maximum of R1 billion.

Johannesburg is proud of the fact that it has never defaulted on any of its obligations and anticipates that, going forward, it will continue to ensure that all its obligations are met timeously.

The City’s achievements in a fragile global economic environment were recognised by ratings agency, Moody’s, in its recent short-term assessment of Johannesburg.

In its report the ratings agency noted: “Although Joburg’s liquidity remains tight… the City’s cash reserves adequately cover short-term obligations, thus supporting the high short-term rating assigned.” It further stated that the rating reflected “recent improvements in the City’s liquidity profile and cash position.”

Compared to its national peers, the City of Joburg is rated in the mid-range of the six Moody’s-rated South African metropolitan municipalities, whose ratings span from Aa2.za to A1.za. Johannesburg’s relative position reflects debt levels that are still high compared to its national peers, although this is expected to fall gradually in the medium term.

The City remains committed to the prudent management of Johannesburg’s finances, focusing on strengthening its balance sheet; tightening of credit policies and continued improvement in revenue collection strategies.

In recent years the City’s economy has been dominated by the tertiary and secondary sectors – most notably financial and business services; retail and wholesale trade; community and social services and manufacturing.Johannesburg’s hosting of the 2010 FIFA™ World Cup led to a counter-cyclical period of growth in the construction sector at a time when the global economic downturn was at its worst, but this has since subsided.

The contraction in the global and national economy came at a time when Johannesburg was already experiencing sustained levels of high unemployment and continued inequities in the geographic and racial distribution of work and wealth opportunities. The official unemployment figure for 2010 was indicated at 23.1 % – reflecting the global economic recession and the after-effects of lower construction activity following the 2010 FIFA™ World Cup.

Improving the customer experience

TheRevenueStepChangeprogrammewaslaunchedinNovember2011tointroduceacustomer-centricapproach to service delivery and address some frustrating challenges faced by customers with regards to billing queries.

Shortly after its introduction, the Revenue Step Change programme started to yield positive results as far as the distribution and quality of statements was concerned. In introducing the Revenue Step Change, the City made a commitment to improve responsiveness to customers.

17

Among the objectives of the programme were:

• tomaintainandcontinueasustainablerevenuemodelforJohannesburg;• tocollectrevenuefromallcustomersandmaintainthecurrentgrowthinrevenuecollection;• toreducewaitingandresponsetimesintheCity’scallcentresandcustomerservicecentres;• toraiseservicestandardsandimprovethecustomer’sexperiencewheninteractingwiththeCity;• toimproveturnaroundtimesforqueryresolutions;and• totrainstaffmembersandmonitorimprovedstandardsofperformance.

The first phase of the Step Change involved the resolution of backlogs in customer queries, the development of new standard operating procedures and the training of staff to ensure a more customer-centric approach in dealing with the public.

During the second phase, the City will focus on longer-term systemic issues involving people, processes and systems. Although the original objective was to complete the project by the end of 2013, current estimates indicate that it might take longer to achieve.

“Like any public sector business, the City needs to allocate and utilise its resources in the most efficient manner possible to achieve its strategic objectives as well as fulfil the requirements of transparency and accountability.”

Economic growth and development cluster

The vision for economic growth for the City of Joburg is “an economy that is inclusive, liveable and prosperous forall”.ThisvisionisinformedbytheNationalDevelopmentPlan&Vision2030;TheNewGrowthPath;TheGauteng Economic Growth and Development Strategy; The Industrial Policy Action Plan (IPAP); the Gauteng City-Region Concept; and the macro-economic strategy of South Africa.

The long-term outcome for the cluster is an inclusive, job-intensive, resilient and competitive economy – as reflected in Outcome 3 of the GDS. The economic growth cluster comprises of the Department of Economic Development and its entities, namely: Joburg Property Company (JPC), Metro Trading Company (MTC), and the Johannesburg Fresh Produce Market.

The Department of Economic Development is the command centre for economic growth in the City, working proactively and collaborating with other key stakeholders such as the private sector, civil society, other city departments and municipal entities and other spheres of government. It capitalises on the City’s own economic levers, such as City-owned assets and other indirect instruments, to leverage and stimulate both local and foreign investment.

The department delivers on its mandate by actively intervening in the City’s economy to create an environment conducive to accelerated local economic growth that is sustainable and the benefits and opportunities of which are equitably spread to all its citizens.

The Joburg Market is the biggest fresh produce market in the world in terms of volumes traded. Its annual turnoverisaboutR2.8billionwithsome40000peoplevisitingthemarketonabusyday.Itsquestistodeliver world-class market services to the citizens of Johannesburg and its broader client base. This includes nourishment on a daily basis through the provision of suitable quantities and qualities of fresh produce.

The Johannesburg Property Company has a primary objective to develop and manage Council-owned properties and maximise social and commercial opportunities for the Council in the short and longer term. The company’s main functions include property development and asset management services. The City’s immovablepropertyportfolio,managedbyJPC,isestimatedatapproximatelyR9billionandalsoincludes 39000hectaresoflandwithamunicipalvalueofR14.8billion.

The Metropolitan Trading Company is responsible for organising and managing trading facilities that accommodateabout5000informaltraders,aswellasmaintainingtaxiranksthroughouttheCity. These facilities aim to provide safe and good quality services to both commuters and consumers.

18

19

Trade and investment

The City facilitated investment into the Soweto Empowerment Zone and secured approvals for the implementationoftheBuy,Sell,InvestandVisitJoburgcampaignwhichwillpositionJohannesburgasadestination of choice for trade and investment, as well as a launch-pad into the African continent as the new growth territory for global corporations.

Spatial economic development

To develop marginalised areas by addressing socioeconomic disparities, the City facilitated the development ofaretailnodeintheDeepSouth.EngagementswereundertakenwiththeNationalTreasurytoaccesstheNeighbourhoodDevelopmentPartnershipGrant(NDPG)toestablishanautomobileparkinAlexandraaswellas the industrial park in Ivory Park, which are expected to yield fruit in the 2012/13 financial year.

Small- medium- and macro enterprises

The City has prioritised skills development as a driver for the competitiveness of Johannesburg. To address the gap between skills supply and those that are required by the City’s economy, a number of school leavers were placedintostrategiccompaniestosecuretherequisiteexperience.Similarly,90cooperativeswereassistedthrough workshop programmes and registration on the supplier database. Several other initiatives which were geared to developing skills within the City’s economy were implemented, including learnerships, training and capacity development programmes.

Broadband infrastructure

TheCitysuccessfullyrolledout750kmofbroadbandopticfibre.Whenoperationalinthe2013/14financialyear, this will help to bridge the digital divide between rich and poor and lower the cost of doing business in Johannesburg through the provision of world-class IT services.

Inner-city regeneration

Progress was made in the development of a social housing complex – the O‘Reilly Development – in City-ownedlandparcelsinBerea.Thedevelopmentplanwasapprovedandtheprocesstoconstruct48socialhousingunitswillcommenceinthefirstquarterofthenewfinancialyear.MorethanR628millionworthofinvestment was attracted into the inner city through the Urban Development Zone tax incentives.

Job creation

The creation of new job opportunities through the Extended Public Works Programme (EPWP) has progressed steadily,withatotalof35149newworkopportunitiesbeingcreated.TheSkillsHubwaslaunchedandthedetailsofmorethan300youthswereuploadedontheLabourMarketInformationDatabase.Thedepartmentdesigned a learner training programme in collaboration with the private sector that will ensure the placement of young people in the ICT and construction industries.

“Today we can say with much confidence that our institution and entities are much stronger and our financial position is sound.”

“…we are making steady progress in improving customer interface, in strengthening our revenue collection service and restoring confidence in the integrity of our billing system.”

Governance cluster

The governance cluster enables the City of Joburg to be “a responsive, accountable, efficient and productive metropolitan government”.

20

During the past year, its focus was directed towards the development of the Growth and Development Strategy (Joburg 2040), the five-year IDP, frameworks, guidelines and protocols. In the coming years it will be responsible for the implementation and monitoring of these strategies, frameworks, guidelines and protocols.

Outcome 4 of the 2040 GDS envisages Johannesburg as “a leading metropolitan government that proactively contributes to build a sustainable, socially inclusive, locally integrated and globally competitive Gauteng City Region.”

Key achievements

BytheendofMay2012,theCityhadspentabout65%(R2423920)oftheapproved,revisedcapitalbudgetforthefinancialyear.Projectedspendbytheendoftheyearis95%ofthetotalofR3749203000.

TheUrbanSettlementDevelopmentGrant(USDG)spendingwasatR673.2million,representing92.7%spendof the grant budget.

TheactualyeartodatedirectrevenueisunderbudgetbyR397.8million(1%)andtheactualdirectoperatingexpenditureisunderbudgetbyR820.2million(3%)attheendofMay2012.TheneteffectresultedinanoperatingsurplusofR1.9billionagainstabudgetedsurplusofR1.6billion.

Financial sustainability is at the core of realising the long-term GDS goals of the City. To achieve this, the City has adopted innovative mechanisms to ensure stable, sustainable and resilient finances. The financial sustainability sub-programme ensures that, before tackling the long-term objectives of sustainability, the City first addresses current challenges with the intention of sustaining prudential ratios for a favourably rated organisation.

CouncilapprovedarevisedCapitalBudgetforanamountofR3749203000,withR1843773000relatingtothemunicipalentitiesandR1905430000tothecoreadministration.

A policy framework was concluded to accelerate Johannesburg’s deliverables in the reduction of carbon emissions, sustainable infrastructure and a green economy.

TheRoadmapforRevenueandBillingwaslaunchedinNovember2011toresolvebillingqueriesfromcustomers and wipe out the backlog of outstanding queries. The City committed itself to a customer-centric approach to dealing with the public at offices and call centres. The Roadmap sets out clearly defined objectives andmilestonestobeachievedoveraperiodof19months.

Several initiatives were undertaken by the City to improve billing data integrity, including meter audits andcustomeropendays.AnewnumberfortheCity’scallcentrewasintroduced–0860JOBURG (or0860562874).Thisnewcity-widenumberiseasytorememberandmakesuseofimprovedtechnology,which is more stable and is not bound to any one location.

BytheendofthefinancialyeartheCityreceived15000billingqueriespermonthwhichwereresolvedwithin30days.Ninety-twopercentoftheback-loggedqueriesthatwerering-fencedinNovember2011wereresolved.

Specialised backlog-clearing teams were deployed to call centres and regional customer service centres to provide additional capacity for the resolution of current queries. This will lead to further improvements in overall service delivery to customers.

A five-year Integrated Development Plan 2012-2016 was approved by Council following a comprehensive process of community and stakeholder consultation. All business plans of departments and municipal entities were also approved by Council in June 2012.

Johannesburg strengthened its strategic position in the international environment with the approval of an AfricanAgendaandaBRICSAgendatodefineitsrelationshipwithinSouthAfrica’spartnershipswithBrazil,Russia, India and China.

21

Draft strategies for human capital management and performance management were concluded and await approval during the 2012/13 financial year. ”We will build a safe, secure and resilient City that protects, serves, and empowers communities.”

Human and social development cluster

The human and social development cluster takes the strategic and practical lead on the City’s constitutional mandate to promote the social development and upliftment of its residents. It is primarily responsible for Outcome 1 as defined in the Joburg 2040 GDS – “improved quality of life and development-driven resilience for all.”

It takes a long-term view of human development in Johannesburg and set itself 30-year goals to:

• transformthepoorestcommunities,reducinginequalitiesbyaddressingimbalancesinaccesstoincomeand economic opportunity, access to social infrastructure and access to services;

• providearobustandsustainablesafetynetthatupliftstheworking-ageandable-bodiedtoself-sufficiencywhile enabling a basic level of care for the vulnerable;

• raisethelevelofsocialcohesionacrossthecitydecade-on-decade;• improvethetotalhealthprofileofthecity;and• improvethetotalpublicsafetyprofileofthecity.

During the past year, the City achieved measurable results in its programmes to improve social, health and safety conditions city-wide; retained a targeted focus on the elimination of poverty and deprivation; promote social inclusion and capacity-building among residents themselves to eliminate long-standing problems and handle new shocks.

The City’s Health Department is responsible for the delivery of primary healthcare services to Johannesburg’s growingpopulation.Morethan3.2millionpatientswalkedthroughthedoorsofthe80primaryhealthcarefacilities in Johannesburg during the past year to receive free diagnosis, treatment, counselling and care from the City’s trained clinicians and highly qualified nursing staff.

Johannesburg’s Jozi Ihlomile campaign is widely recognised for its ability to mobilise public participation and improve health outcomes in communities. Initially designed to spearhead Johannesburg’s HIV/Aids programme, this door-to-door campaign has been broadened to achieve broader health and social objectives.

Community-based volunteers are trained by the City and then visit each household in their area to provide information on HIV and Aids. During visits the volunteers also detect and report back to the department on other health and social-welfare related issues and assist families with information on available government services.

Almost all children under the age of 12 months are receiving immunisation against preventable diseases and theTBcurerateinJohannesburghasimprovedfrom56%in2002to82%inthepastfinancialyear.Effectivemanagement and preventative measures ensured that there were no outbreaks of communicable diseases during this period.

The City’s Vulnerable Groups Support Programme continued with initiatives to provide sustenance to orphans, child-headedhouseholdsandtheelderlyandassistedwithfoodsecurityto4757households.AllqualifyingEarly-childhoodDevelopmentCentresinJohannesburgnowbenefitfromrebatesonrateswhile843ECDpractitioners and 100 day-mothers received training through City programmes to upgrade their skills.

TheSowetoTheatrewasopenedbytheExecutiveMayor,CouncillorMphoParksTauon25May,2012–AfricaDay. The world-class theatre complex is one of the legacy projects flowing from Johannesburg’s hosting of the 2010FIFA™SoccerWorldCup.ConstructedatacostofaboutR150million,thetheatreisatthecoreofamuch wider city investment in the Jabulani precinct of Soweto, which also includes the construction of mixed-income residential units, commercial development, public squares and parks.

22

AnundoubtedhighlightoftheyearwasthereopeningoftheJohannesburgCityLibraryasacentreofexcellence, providing a unique learning and educational experience to all communities. The historic library building,builtin1935,underwentextensiverenovationsandreopenedasamodernfacilitywithanimpressivecollectionof1.5millionitems–books,DVDs,CDsandperiodicals.

The streets and theatres of Johannesburg come alive each September with the annual celebration of the Arts Alive Festival and the Joy of Jazz Festival which attract global and national icons in the entertainment industry and visitors to the city from across the country. An important element of these festivals is the emphasis placed on community participation, educational programmes and workshops for Johannesburg’s youth.

Johannesburg is proud of its rich cultural diversity and continues to celebrate the contribution made to the city’s social fabric by migrant communities – especially from the rest of the continent of Africa. The Sanaa Africa Festival was hosted for the third successive year to showcase the talents of residents in the fields of crafts, fashion, food, theatre and music.

The City’s crime prevention programme, including arrests for drug-related crimes, illegal possession of firearms, driving under the influence of alcohol and drugs, as well as recovery of stolen motor vehicles, was implemented with great success. More than 400 joint operations were conducted with other law enforcement agencies, 177 people were arrested for illegal drug possession, 136 on firearms and ammunition offences and 7991fordrivingundertheinfluenceofalcohol.

“Joburg is more than tarmac and concrete, and more than wire and pipes. It is also about socioeconomic development and transformation.”

“We will continue with the process to refurbish and replace our infrastructure network and ensure that all residents have access to quality water, reliable electricity and decent sanitation.”

Sustainable service delivery cluster

This cluster’s primary responsibility is the delivery and management of services: water, power, sanitation, roads, transport and waste removal, in an efficient and sustainable manner. It is done in terms of Johannesburg’s vision to ensure “a city with efficient and well-maintained service infrastructure, extended to its citizens and stakeholders, so they can all access a package of innovative, safe, reliable and affordable services”.

Service delivery in Johannesburg remains confronted by a number of challenges, which have remained the same over the years, brought about by increased urbanisation, ageing infrastructure, air and water pollution, development pressure on valuable environmental resources, climate change impacts, waste management practices and the shortage of available landfill space.

Water and sanitation

TheCity’sobjectiveistoreduceservicedeliverybacklogs.TheupgradingofwatertoServiceLevel1willberolled out in the coming financial years. However, the City supplied water to residents of informal settlements through sets of standing taps supplied from the city water supply, storage tanks that are topped up regularly by Joburg Water, and water tankers that drive into the settlements every day.

Joburg Water continued with its upgrading of networks, roll-out of pre-paid metering and repairs to meters, installation of Ventilated Improved Pit toilets (VIPs) and an increasing number of response teams. A total of 1696householdshavereceivedaccesstobasicsanitationandthesetannualtargetshavebeenexceeded.

Morethan9kmofwaterandsewernetworkswereupgradedinFourways,OrangeFarmandAlexandraandmore than 6 000 water meters repaired. The continuing upgrade of infrastructure in Soweto will result in approximately57000Mlsavinginthe2013/14financialyearwithafurtherdemandreductionof45000Mlinthe2014/15year.SuchreductionsinoveralldemandwilldiminishthepossibilitythattheCitymighthavetointroducewaterrestrictionsby2015.

Johannesburg is still the best performing municipality in the country with regards to water quality. It again receivedthecovetedBlueDropAwardfromtheDepartmentofWaterAffairs,withaqualityindexof 97.69%–thehighestinthecountryfor2012.

23

24

Environmental management

IllegaldumpingconsumessignificantattentionandresourcesfromtheCityandatotalof1580illegaldumping grounds were cleared. Strengthened by-law enforcement and improved cooperation by the public to reduce illegal dumping will release much-needed resources for rehabilitation sites.

The provision of waste services concentrated on cleanliness levels and illegal dumping. This was carried out by Pikitupthroughstreetsweeping,thereintroductionoffive-days-a-weekcleaningat119informalsettlements,by-law enforcement, and awareness campaigns. All households in the City, in formal and informal settlements, now have access to the basic weekly refuse-removal service.

A clean-up campaign was introduced to encourage communities to care for their living environment, through education on waste management and recycling. Part of the cleaning programme was aimed at clearing and convertingillegaldumpingsitestorecreationalfacilities.TheNationalCleanCitiesandTownsprogrammewasalso launched in Alexandra and Ivory Park.

Targetstoreduce8%ofsolidwasteawayfromlandfillswerenotachieved,buttheCitywillredoubleitsefforts to minimise waste through a city-wide roll-out of a separation-at-source campaign.

TheCitycontinuedimplementinginterventionstorehabilitateBrumaLakeandZooLake,includingchemicaldosing to improve water clarity and litter control resulting in reduction of bacteriological pollution. A clean-up campaign was introduced with the “Adopt-a-River” campaign, launched at the Jukskei River, to encourage communities to cherish and maintain their surroundings.

Power, electricity and public lighting:

Concerted interventions were undertaken to improve meter reading, the functionality of streetlights, and reduction of outages. This also included the installation and maintenance of public lights, the installation of bulk meters, conversion to pre-paid metering and removal of illegal connections.

The 2011/12 financial year was marked by an increase in the number of requests for streetlights across the various communities of Johannesburg. The immediate challenges have been the delivery of streetlights and security lights to a growing constituency currently occupying informal settlements within an environment of limited resources.

TheCityidentified23priorityareasforpubliclightinginstallation.Atotalof5126publiclightswereinstalledagainstannualtargetsof4000publiclights,mainlyinpreviouslydisadvantagedandpriorityareas,and96%maintenance of public lighting was achieved.

However, the City could not attain targeted performance levels on metering infrastructure and meter reading, which had an adverse impact on the revenue value chain, in particular billing accuracy and revenue collection.

Thenumberofnetworkperformance-relatedoutagesatHighVoltagelevelwasreducedto68–belowthetargetof75.CityPowerinitiatedaphasedprojecttoreplaceobsolete,bareoverheadlow-voltagemainswithamodernAerialBundledConductorSystem.Thiswillsignificantlyreducefutureoutagesduetointerferenceby trees, inclement weather conditions and conductor breakages.

In the past year, Joburg started with a ground-breaking initiative to introduce demand-side management measures to reduce wasteful consumption of electricity and water resources, and the volume of waste disposed at the landfill sites. The initial phase included the installation of energy efficient light fittings and bulbs, and prepaid meters.

Atotalof24522energyefficientlightswereinstalled,resultinginenergysavingsof1.2MWandan annualcostsavingofR2.5million.Atotalof23178prepaidmeterswereinstalledagainstanannual targets of 40 000.

25

Urban regeneration

The Johannesburg Development Agency (JDA) promotes sustainable economic growth through the development and promotion of efficient urban environments in defined geographic areas. It achieves this through working on the regeneration of areas of the city that are either in decay or declining, to enhance their ability to contribute to the development of the city and the quality of life of its residents.

It also focuses on areas that require public investment to catalyse area-based regeneration and private sector investment. The JDA’s approach is that public sector interventions (such as investment in infrastructure, urban environment upgrades, proper urban management, provision of tax incentives) in declining areas provides the necessary platform for private sector investment and re-investment into these areas.

During the 2011/12 financial year, the JDA achieved significant progress in three areas that are of strategic importance for the future economic and spatial development of Johannesburg:

• TheregenerationofkeyeconomicnodessuchastheJohannesburginnercity,andtheRandburgandRoodepoortCBDstoenabletheseareastoattractagreateragglomerationofeconomicactivityandmoreintensity of land use.

The 2011/12 phase of the Westgate Station Precinct project was completed as planned in May 2012. This project will continue as a multi-year project with annual construction phases in the coming two financial years.

• Thedevelopmentofselectednodesinmarginalisedareastostimulatelocaleconomies,increasecompetitiveness, and broaden access to markets and jobs.

The JDA is responsible for two projects funded through the CoJ Capital grant in 2011/12: the Kliptown Development and Orlando East Station Precinct. Construction contracts were awarded for both projects in January 2012.

• Thedevelopmentofhigh-densitymovementcorridorsanchoredbytransitnodestorestructurecityform,promote efficient land use and transport energy consumption.

“The process of transformation of our City’s landscape is on track, it is our commitment to continue along this road of changing the spatial structure of a divided city of the past.”

Housing

Housing delivery in Johannesburg is faced with a number of challenges resulting from accelerated population growth in informal settlements through household growth and in-migration. In addition, with increasing backlogs, the demand for housing in the city is far greater than the supply and the City has identified this as an area for priority attention during the current mayoral term.

The City’s performance on construction of houses and upgrade of informal households has increased to more than100%ofthetargetset.InJune2012,theCityofJoburgwasdelegatedwithLevel2Accreditationbythenational department, meaning that it will in future exercise full programme management.

The formalisation of informal settlements remains a challenge due to the longer lead times for township establishment. A number of beneficiaries have been relocated to housing opportunities but the settlements are not cleared in totality due to the presence of non-qualifiers and land availability.

The City has set its targets according to the national objective to accelerate the upgrading of 400 000 householdsinInformalSettlementsby2014.Johannesburgisexpectedtoupgrade19200householdswithinthis timeframe.

Inthe2011/12financialyear,theCityproduced2691housingopportunities–exceedingtheannualtarget of 2 000.

26

Housing interventions included the provision of housing stock in the inner city, basic services at hostels, eradication of informal settlements and repairs and maintenance of old-age homes and Council stock. This included the refurbishment of Casa Mia and Amy Hospital for rental housing, maintenance and repairs at the Dube,DiepkloofandMeadowlandshostels,renovationsatAnneBurger,Xavier,CaricPlaceandNederburgold-agehomes,aswellashouseconstructionatLehae,tocaterfortheeradicationoftwoinformalsettlements.

In addition, the City identified 300 residents to receive their house title deeds as part of the land redistribution programme to promote property ownership for marginalised communities and entrepreneurs.

“We will continue to extend our Bus Rapid Transit system to ensure that our communities have access to safe, affordable and reliable public transport.”

Transportation

The transportation vision is for a city with a safe and efficient transportation system with a public transport focus, and a well-developed and well-maintained roads and stormwater infrastructure. This enables the city to connect businesses, people and places in a sustainable and cost-effective manner, thereby enhancing the standard of living and quality of life for all inhabitants as well as the overall competitiveness and growth of the local economy.

The infrastructure for the Rea VayaBusRapidTransit–aflagshipprojectinJohannesburg–wasadequatelyprovided.Thesetannualtargetof4.92kmofroadwayswascompleted,includingamixofnewroadworksonPhase1Bandthestrengtheningoflayerworksoftwosectionsof1A(SowetoHighwayandCharltonTerrace).

Four new stations were opened along Rissik and Harrison Streets at Park Station, and a second station along theSowetoHighwayatBooysens.ThecompletionoftheRea Vaya Dobsonville permanent depot will be achieved in the first quarter of the financial year 2012/13.

Duringthefinancialyear,BRTtransportedanaverageof42000passengersperday,exceedingthetargetof40000.Inthethirdandfourthquarter,thebusoccupancyratesduringpeakhoursreached95%.The Rea Vaya operations continued to use the paper ticketing system, which will soon be phased out and replaced by an automated fare collection system.

BRToperationsreportsindicatethattheintroductionoftheBRTresultedinadropintraveltimefromSowetoto downtown Johannesburg by almost 40%, and affordable fares compared to taxis on most of the routes.

The Transport Department also introduced a number of new policies in the year under review including ‘complete streets,’ ‘managed lanes’ and ‘open streets’ to encourage residents to see streets as public spaces for all road users – not just vehicles – and to use road space differently.

The review of the Integrated Transport Plan began with the preparation and conducting of surveys to understand transport demand and supply. This is key to developing an integrated public transport, walking, cycling and freight network.

TheMetropolitanBusServicedailymovesabout90000peoplefromonepartofthecitytoanotherinasafeandaffordablemanner.ItisthesecondlargestmunicipalbusoperatorinSouthAfrica,withabout450busescovering80scheduledroutesand130schoolroutes.

Roads infrastructure interventions during the year focused on the resurfacing of roads, stormwater maintenance and traffic signals management, slit management in Alexandra and Soweto, stabilisation of gravel roads, and removal of graffiti and illegal advertising. Steps were taken to realise improved road quality, traffic mobility, pedestrian safety and stormwater management.

27

The upgrading of traffic signals at more than 200 road intersections and a drive to maintain 200 main roads as pothole free contributed to positive media coverage. The resurfacing of roads involved the patching of more than18000potholesandinexcessof71kmofroadsbeingresurfaced.TheupgradingofgravelroadstotarroadscontinuedinareasincludingOrangeFarm,Braamfisherville,IvoryParkandDoornkop.

In the financial year, the City cleaned more than 100km of stormwater pipes and achieved 64% coverage of stormwaterupgradeinterventions.Atotalof12541streetnames(paintedonkerbs)havebeenmaintainedagainst an annual target of 12 000.

Therefore let us all roll up our sleeves todayand work together to build the future – resilient, sustainable and liveable communities.

Councillor Mpho Parks Tau, Executive Mayor of the City of Johannesburg

28

Nthatisi ModingoaneDeputy Director: Communications

Tel 011 407 7354Fax 011 403 3494Cell 082 467 9228E-mail nthatisem@joburg.org.za

www.joburg.org.za

City of Johannesburg

1st Floor A BlockMetropolitan Centre158 Loveday StreetBraamfontein

PO Box 1049JohannesburgSouth Africa2000