According to the City’s annual report for 2007/2008, capital expenditure was the highest it has ever been over this period. Ninety four percent (including contract and tender commitments rolled over to 2008/2009) of capital budget was spent, with total investments of R3,1 billion in infrastructure.

Capital projects included roads, water and sewerage systems, solid waste removal, electricity distribution, housing projects and amenities such as sports facilities, parks, clinics and libraries.

The City also spent 100 percent of its R12,2 billion operating budget, which is unprecedented.

This compares favourably to the City’s average 60 percent rate of expenditure between 2000 and 2006.

The improvement has been attributed to an extensive overhaul of the City’s staff structure and financial systems over the past two years. This has resulted in an overall 15 percent increase in skilled professionals.

A sustained debt management campaign was also instituted, enabling the City to increase rates and service rebates to pensioners and poor residents.
The City also received an unqualified audit from the Auditor General for the fifth consecutive year, and maintained the highest credit rating in the country from international ratings agency Moody’s.

Procurement processes have been improved, with 24 percent more tenders issued in the last financial year compared to the previous one. Tenders now take on average 6,5 weeks to finalise, compared to 15 weeks in 2005.

The supply chain management department has obtained an ISO 9001 accreditation – making the City the first South African municipality to achieve this.

“Our key objective is to promote economic growth in Cape Town by creating a more attractive and enabling urban environment for investors and skilled workers, so that more jobs can be created. This means investing in urban infrastructure and providing services to create confidence in our future,” says Executive Mayor Helen Zille.

“By doing all we can to facilitate rapid economic growth, we aim to create more opportunities for all of our citizens, especially job opportunities. To address development in this manner requires an efficient and financially stable administration.”

The annual report can be viewed on the City of Cape Town’s website, www.capetown.gov.za. It is also available at municipal libraries and subcouncil offices.

Source: Cape Town