Post on 27-Dec-2015
FINANCING CITY GOVERNMENT
SERVICES IN SOUTHERN AFRICA CITIESNETWORK WORKSHOP 26 MAY 2011
Presented By: RM Gertze –
Strategic Executive: Finance
And
Piet Du PisaniStrategic Executive: Infrastructure, Water and Waste Mngt.
OUTLINEOUTLINE
INTRODUCTION POWERS FUNCTIONS INTERGOVERNMENTAL
RELATIONS MANAGING CITY REVENUES PROJECTS FOR FUNDING CONCLUSION
INTRODUCTION POWERS FUNCTIONS INTERGOVERNMENTAL
RELATIONS MANAGING CITY REVENUES PROJECTS FOR FUNDING CONCLUSION
City of WindhoekCity of Windhoek
City accounts for 43% of national GDP amount to USD 5.96 billion
Total revenue of the City is USD 200 million
Spending per capita is USD 405
Rural urban migration 4.4%
City accounts for 43% of national GDP amount to USD 5.96 billion
Total revenue of the City is USD 200 million
Spending per capita is USD 405
Rural urban migration 4.4%
City of WindhoekCity of Windhoek
Capital City of Namibia
Windhoek is seat of Government
Windhoek is also the centre of commerce
Capital City of Namibia
Windhoek is seat of Government
Windhoek is also the centre of commerce
City of WindhoekCity of Windhoek
Population of approx. 330,000 with additional 50,000 commuter population
Area of jurisdiction 112 square kilometers
Population of approx. 330,000 with additional 50,000 commuter population
Area of jurisdiction 112 square kilometers
City of WindhoekCity of Windhoek
Governance: 15 part time Councillors Chief Executive Officer 9 Heads of Department 48 Divisions 1800 employees
Governance: 15 part time Councillors Chief Executive Officer 9 Heads of Department 48 Divisions 1800 employees
City of WindhoekCity of Windhoek
City does not receive support from government for capex or opex
City still has the responsibility for trade services like electricity, water and sanitation
City does not receive support from government for capex or opex
City still has the responsibility for trade services like electricity, water and sanitation
POWERSPOWERS
Reform of local government was initiated in Namibia after independence in 1990 in accordance with the development paradigm of the day, which embraced the idea of decentralised government as a means of improving public service delivery, and enhancing economic development .
It was preceded in 1992 by the passing of the Regional Councils Act 1992 (Act 22 of 1992) and the Local Authority Councils Act (Act 23 of 1992), which provided the legislative framework for the institutionalising of the decentralised government
The official Decentralisation Policy of Namibia was launched in 1998. It identifies functions to be decentralised and lays down the implementation guidelines, resource strategies and the choice of the form of decentralisation
Reform of local government was initiated in Namibia after independence in 1990 in accordance with the development paradigm of the day, which embraced the idea of decentralised government as a means of improving public service delivery, and enhancing economic development .
It was preceded in 1992 by the passing of the Regional Councils Act 1992 (Act 22 of 1992) and the Local Authority Councils Act (Act 23 of 1992), which provided the legislative framework for the institutionalising of the decentralised government
The official Decentralisation Policy of Namibia was launched in 1998. It identifies functions to be decentralised and lays down the implementation guidelines, resource strategies and the choice of the form of decentralisation
POWERSPOWERS
The establishment of local government is enshrined in the National Constitution under Chapter 12, article (102) (1)
The main legislative text dealing with local government is the Local Authorities Act, Act 23 of 1992
The establishment of local government is enshrined in the National Constitution under Chapter 12, article (102) (1)
The main legislative text dealing with local government is the Local Authorities Act, Act 23 of 1992
POWERSPOWERS
PART XVII: FINANCIAL MATTERS
Funds of local authority councils
80.(1) The funds of a local authority council shall consist of ‑
Locally raised revenue. Rates & Taxes Electricity supply charges Water rates Other
Although government provides grants to some towns and villages, the Local Authority Act provides that the funds of a local authority council consist of:
PART XVII: FINANCIAL MATTERS
Funds of local authority councils
80.(1) The funds of a local authority council shall consist of ‑
Locally raised revenue. Rates & Taxes Electricity supply charges Water rates Other
Although government provides grants to some towns and villages, the Local Authority Act provides that the funds of a local authority council consist of:
POWERSPOWERS
PART XVII: FINANCIAL MATTERS
(a) moneys appropriated by law for purposes of the funds of the local authority council;
(b) the rates, charges, fees and other moneys levied under any provision of this Act and received by the local authority council;
(c) any moneys borrowed by the local authority council by way of loans or the issue of debentures, bills of exchange or other negotiable instruments;
PART XVII: FINANCIAL MATTERS
(a) moneys appropriated by law for purposes of the funds of the local authority council;
(b) the rates, charges, fees and other moneys levied under any provision of this Act and received by the local authority council;
(c) any moneys borrowed by the local authority council by way of loans or the issue of debentures, bills of exchange or other negotiable instruments;
POWERSPOWERS
(d) any interest or dividends derived from invest ments;
(e) any fines imposed in respect of any
contravention of, or failure to comply with, any provision of this Act or any other provision administered by a local authority council by virtue of the provisions of Act.
(f) any moneys generated from the sale of municipal services such as water, electricity and land sales.
(d) any interest or dividends derived from invest ments;
(e) any fines imposed in respect of any
contravention of, or failure to comply with, any provision of this Act or any other provision administered by a local authority council by virtue of the provisions of Act.
(f) any moneys generated from the sale of municipal services such as water, electricity and land sales.
POWERSPOWERS
The general policy is that local governments should be self-funding or move towards that.
Central government provides subsidies to village councils, regional councils and about four town councils that do not have sufficient revenue base.
Municipalities classified as Part I, do not receive any type of funding from Government.
The general policy is that local governments should be self-funding or move towards that.
Central government provides subsidies to village councils, regional councils and about four town councils that do not have sufficient revenue base.
Municipalities classified as Part I, do not receive any type of funding from Government.
FUNCTIONSFUNCTIONS
Part V: Powers, Duties, Functions, Rights and Obligations of Local Authorities
Section 30 (a – z)
Part V: Powers, Duties, Functions, Rights and Obligations of Local Authorities
Section 30 (a – z)
INTEGOVERNMENTAL RELATIONS
INTEGOVERNMENTAL RELATIONS
No formal intergovernmental relations
Quarterly reports to the Ministry of Regional and Local government, Housing and Rural Development
Additional budgets only by approval by MC, Council and MRLGHRD
Rezoning and subdivisions
No formal intergovernmental relations
Quarterly reports to the Ministry of Regional and Local government, Housing and Rural Development
Additional budgets only by approval by MC, Council and MRLGHRD
Rezoning and subdivisions
INTEGOVERNMENTAL RELATIONS
INTEGOVERNMENTAL RELATIONS
Donations
Sale of land via private treaty
Consultation of budget with Regional Council
Transfer of 5% of assessment rates collected to Regional Council
Donations
Sale of land via private treaty
Consultation of budget with Regional Council
Transfer of 5% of assessment rates collected to Regional Council
INTEGOVERNMENTAL RELATIONS
INTEGOVERNMENTAL RELATIONS
Received N$ 10 million as once off contribution in 2010 for sanitation in the informal areas
GRN promised N$ 300 Million for installation of services in the informal areas over the next three years
Defined need for servicing informal areas N$891million over five years
Received N$ 10 million as once off contribution in 2010 for sanitation in the informal areas
GRN promised N$ 300 Million for installation of services in the informal areas over the next three years
Defined need for servicing informal areas N$891million over five years
Managing City RevenuesManaging City Revenues
Accurate client database
Tariff setting
Cost containment
Debt collection
Accurate client database
Tariff setting
Cost containment
Debt collection
Potential projects for fundingPotential projects for funding
Artificial aquifer recharge project – N$ 240 Million
Ujams waste water treatment plant – N$ 120 Million
Gammans waste water treatment plant – N$ 60 Million
Artificial aquifer recharge project – N$ 240 Million
Ujams waste water treatment plant – N$ 120 Million
Gammans waste water treatment plant – N$ 60 Million
ConclusionsConclusions
The City of Windhoek has various developmental projects for which it needs funding, beyond what we have indicated at the workshop.
A five year business plan will be available by 1 July 2011 and same will be forwarded to PIAFF for consideration.
The City of Windhoek has various developmental projects for which it needs funding, beyond what we have indicated at the workshop.
A five year business plan will be available by 1 July 2011 and same will be forwarded to PIAFF for consideration.