You need to chase the cat all the way to the Mayors house. Then go down the stairs to activate the power by clicking on the gears that are on the right. This is accomplished by placing all the gears so they and interlocking and spinning the correct way.
Then go back upstairs and outside and click on the small box that is just to the right of the Mayor's house to be given another puzzle. This puzzle you need to rotate the diffierent coloured platforms by clicking the 3 buttons on the top right of the puzzle so they match what is displayed at the bottom right. When you have done this click the red button and climb up the new staircase that apppears to the next area.