City of Johannesburg Investor Road Show January/February 2011 - PowerPoint PPT Presentation

City of Johannesburg Investor Road Show January/February 2011

Contents 1  Road Show team  Overview of the City  Political Overview  Financial Overview  Revenue Performance  Funding Strategy  Bond Offering

Road Show Team 2 Issuer – City of Johannesburg Metropolitan Municipality Parks Tau MMC Finance: City of Joburg ParksT@joburg.org.za 011 358 3662 Mavela Dlamini City Manager: City of Joburg Citymanager@Joburg.org.za 011 407 7309 Group CFO and Executive Director Finance: Mankodi Moitse MankodiM@joburg.org.za 011 358 3619 City of Joburg Khomotso Letsatsi Director Treasury : City of Joburg Khomotsomap@joburg.org.za 011 242 1043 Acting Head of Dealing : City of Joburg Mabandla Sibisi Mabandlas@joburg.org.za 011242 1059 Lead Manager – Standard Bank and Basis Points Capital Zoya Sisulu 011 378 7032 Debt Capital Markets - Standard Bank zoya.sisulu@standardbank.co.za Khulu Montshiwagae Head Treasury- Basis Points Capital khulu@bpscapital.co.za 011 783 6169

Overview of the City of Johannesburg

Overview of the City 4  The City Of Joburg was established in December 2000, it was the results of a merger of the Greater Johannesburg Metropolitan Council and its substructures namely the Northern, Eastern, Western and Southern Metropolitan Local Councils as well as Midrand and Modderfontein  The City is the most populous of South Africa’s nine metropolitan municipalities and remains the financial hub of the country  Johannesburg is a powerful commercial centre on the African continent with world class facilities including: telecommunications, electricity, broadcasting, clean water, Transportation infrastructure, health care, accommodation, office buildings, conference centres and recreational facilities Key Facts Land Area The City Stretches over 1,664km2 Population 3,8 million people Households 1,3milliom % of Provincial Population 37% % of National 7% Population % of National GDP Contribution of about 16% Contribution to National The City contributes approximately 15% of employment employment Finance, Business Services and Key Sectors Construction The City has set its sights on becoming a World-Class African city in which all residents can enjoy the fruits of economic growth and job creation and lead prosperous and healthy lives

Governance Structure 5  The City is one of two municipalities to pilot a new governance model allowing the City to refine , amongst others, the roles of the executive , council and administrative heads, level of decision making, accountability, institutional structures and the oversight of municipal entities by the respective core departments.  The key role of Council in the new structure is to focus on legislative, participatory and oversight roles. Council delegates its executive function to the Executive Mayor and the Mayoral Committee  Council’s principal role is that of law maker, to debate issues publically and to facilitate political debate and discussion  Section 79 oversight committees have been constituted and are chaired by non-executive Councillors  The portfolio committee’s primary responsibility is oversight of the executive arm of the City’s governance and to monitor the delivery and outputs of the executive Legislature Council Speaker Chairman of Committees Chief Whip Whips Standing Committees Portfolio Committees ANC DA Economic Petitions & Public Health Rules Development Participation UDM ACDP Community Standing Committee Transportation Ethics/Disciplinary Development on Public Accounts CDP Independent Dev Planning and Urban Public Safety Programming Management PAC FF PLUS Infrastructure Housing IFP AZAPO Development Economic & Corporate Finance OKM ID Shared Services CF Source: City of Johannesburg Annual Report 2000/9

Growth & Development Strategy Package 6 Analysis The GDS package … Governance Environment Infrastructre 6 principles cut across to inform Human Dev Spatial Dev Corp service Econ Dev Transport analysis, vision and strategic Housing Finance Health Safety choices organised in 12 Sector Areas Vision Proactive absorption of the poor 1. Long-Term Goals Balanced & shared growth 2. Long Term Strategic Interventions Facilitated social mobility bridging into … 3. Five-Year IDP Objectives Settlement restructuring 4 Five-Year IDP Programmes Sustainability & environmental justice Innovative governance solutions

City Priorities – 2006 to 2011 7 The City’s vision is an expression of Johannesburg’s continued role as a wealth leader and opportunity creator – a role it has played for more  than a century. But it also emphasises the need to transform Johannesburg from a city where only a few enjoy the fruits of propsperity, while the majority continue to struggle The city’s vision will be driven by the following six core development principles  Core development principles  1. Proactive absorption of the poor The need of the poor must be prioritised and therefore will facilitate the transition of the poor, identified as new households , new internal and circular migrants, those in hostels, informal settlements and historical ghettoes, youth and refugees  2. Balanced and shared growth The City will continue to keep the cost of doing business as low as possible, but will also aim to ensure that the benefits of growth are shared more broadly  3. Facilitated social mobility and Crucial to the City’s development that people are assisted out of poverty through shared growth and other measures equality  4. Settlement restructuring Includes bringing jobs closer to people and people closer to jobs  5. Sustainability and environmental To become a more sustainable city buy anticipating and managing the effects of environmental change. Its means promoting environmental justice , as well as ensuring justice that quality of life is enhanced , by extending green infrastructure to areas that have historically functioned as grey and featureless dormitory  6. Innovative governance solutions The City recognises that the development challenges cannot be met alone. The City of Johannesburg is committed to finding joint solutions to these challenges by working closely with citizens, communities, business, all spheres of government and interested stakeholders

Revenue Management 8 The City embarked on a aggressive credit control campaign  Approximately 30,000 accounts were subjected to the credit control  Of that 15,000 made arrangements to pay or paid in full  Challenge Expected Action Investigate and correct the interface between LIS and the billing system. Ensure updating of +- 10 000 records not on the billing system. Deeds transfers not updated on the billing system Manage exceptions from the error report from SAP Finalise and test the interface Adhoc confirmed address changes by LIS Update physical and stand numbers changes confirmed. Extract of customers of accounts with the same addresses Incorrect stand and physical addresses on the billing system Correct incorrect addresses Put controls not to release incorrect bills Exorbitant billing amounts Take disciplinary action for releasing incorrect bills

Revenue Management 9 Challenge Expected Action Implausible and outsorts Timely releasing of implausible and outsorts within 5 days Move water meters on the boundaries Estimated meters -Inaccessible Convert inaccessible electricity meters to prepaid Replacement of meters Estimated meters (Faulty) Investigate and correct the interfaces between MOE and R & CRM Correct the ageing on the statements Correct the consumption on the statements Wrongly printed statements Cancel the workflow for adjustment approvals. Ensure proper control on adjustment capturing

Revenue Management 10 Challenge Expected Action Printing errors Clear the workbench errors Billing & invoicing logs Clear and resolve the logs Incorrect CCMS disconnections amounts Investigate and correct the differences between CCMS and Billing system Investigate updates of accounts loaded for disconnection Incorrect cut offs Develop business rules to validate accounts before sent for disconnection e-Services not working Post all statements through Post Office Incorrect Inner-City property zoning Investigate and update zoning Prepaid Meters not showing/marked Investigate and update prepaid found