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.

Thank You“city of many faces”

Thank You“city of many faces”