The perception that the defaulters were mainly poor people was incorrect as the defaulters also included provincial and national government.

Mfeketo said the roots of the city's problems were long standing. "We extensively subsidise a number of agency functions and unfounded mandates," she said.

Among these functions were the metro police on which R300m a year was spent, libraries costing R113m and health services costing R169m . One of the burdens it had inherited was a staff complement which was the largest and most expensive in the country.

The unicity's salary budget represents 38% of its budget, compared with 30% for Gauteng and 27% for Tshwane.

She said the council was moving "rapidly" to complete the process of merging the seven previous administrations into one. It was rationalising the administration and streamlining the top management team. One area the council was expected to make personnel cost savings was from staff attrition. Mfeketo said the council was also considering increasing income from the sale of land.

Deputy mayor Pierre Uys said that in spite of the council having to reschedule projects, it would "stick to its strategy and plans" and that its focus on delivery through its indigent policy would remain.

The council has also been embroiled in a controversy over tariffs and the bungled communication to homeowners of new interim valuations affecting about 20000 Cape Town property owners.