5 year plan (IDP) to
Neighbouring Municipalities
High level overview
Presented by: Martin van der Merwe
Date: Wednesday 26 September, 2007
Before I start…………. The reason
for this workshop
Step 1 of building relationships, sharing information, plans and best
practices;
Coordinate and align the development of the region;
Sharing practical, technical discussions affecting officialdom iro
regional cooperation;
It’s a statutory requirement, and
It reflects responsible government!
Content Overview
Sets out City goals for the next 5 Years: 2007/8 to 2011/12
Presents a City strategy for achieving these goals
2010 FIFA WC as a stepping stone to achieving these goals
Alignment with National and Provincial programmes
Proposes a resource allocation model to direct resources at these
goals
Corporate scorecard to measure progress towards these goals
Urban efficiency must be improved to achieve these goals
Administrative efficiency must improve to achieve these goals
EMT support
State of the City
Dr u g r e l a te d c r i m e p e r 1 0 0 0 0 0
Jobless growth and greater
poverty;
Increased backlogs in service
infrastructure and maintenance;
Increased backlogs in housing for
the poor;
Increase in drug and property
related crime;
Increasing HIV prevalence among
women visiting public health
clinics (from 1,2% in 1994 to 15%
in 2005).
700
616
600
482
500
400
3 14
300
2 41
2 32
2 0 0 1 /2 0 0 2
20 0 2 / 2 0 0 3
200
100
0
2 0 0 3 /2 0 0 4
Poverty Level
30%
2005/2006
38%
40%
35%
2 0 0 4 /2 0 0 5
32%
25%
25%
20%
15%
10%
5%
0%
1 9 96
2 00 1
20 0 5
30
Public Needs
26
25
20
15
12
11
10
6
8
10
5
2
5
3
Se
r
ns
in
Cl
ea
Ba
si c
%
vic
es
g/
Sa
Cl
ni
in
tat
i cs
ion
an
d
He
alt
Ho h
us
in
Jo
g
b
Ro
Cr
ad
ea
tio
&
pa
n
ve
Sa
m
fe
en
ty
ts
&
S
e
So
cia cu r i
ty
lF
ac
St ilit ie
s
re
et
Li
gh
ts
Tr
an
sp
or
t
0
18
16
14
12
10
8
6
4
2
0
er
an
vi c
si n
es
g/
Sa
ni
ta
tio
Jo
n
b
R
Cr
oa
ea
d
tio
&
n
pa
ve
m
So
en
ci a
ts
lF
ac
ilit
ie
S
s
tr e
et
Li
gh
ts
Tr
an
sp
or
t
Series1
S
Cl
e
Ba
sic
%
Public workshops were held as
part of a National Imbizo, and
Sub-Council and Ward
workshops were held where
members of the public could
vote for priorities in their
community.
Housing and job creation was
clearly ranked as the most
important priorities.
If non-constitutional functions
are removed, job creation,
social facilities, roads and
pavements emerge as the
highest priority issues that the
municipality can address.
17
Source:- IDP Office Summary. January 2007
City Vision
Prosperous City with an enabling environment for shared
economic growth based on effective service delivery, good
governance and efficient administration
High Level City Goals
Goals:
A prosperous city
Effective and equitable service
delivery
A well governed and efficiently run
administration
Accelerated shared GGP
growth of between 6%
and 8%
Strengthening urban
efficiency by improved
service delivery
5 YEAR PL AN FOR THE CITY
• Shared economic growth and
• development
• Sustainable Urban Infrastructure
Good governance and
improved Institutional
effectiveness
Urban
Efficiency
and
Services
• Public Transport Systems
• Integrated Human Settlements
• Safety and Security
• Health, Social and Human Capital
Development
• Good Governance and Regulatory
reform
Institutional
Effectiveness
Institutional efficiency
Critical to achieve City Goals as adjunct to IDP;
Organise ourselves to be more efficient and
productive;
Operations integration model work in progress
Significant progress with development of
Model
EMT will have draft by mid March for
engagement with Mayco
Goals:
A prosper ous city
Effective and eq uitab le servic e de livery
A well g overn ed an d efficie ntly run
admi nistratio n
5 YEAR PLAN FOR THE CITY
Urba n Efficiency
• Shared ec onom ic growth a nd
• develo pment
• Sustain abl e Urba n Infrastructure an d
Services
• Publ ic Transport Systems
• Integrated H uman Settlem ents
• Safety and Secur ity
• Hea lth, Social a nd Hum an C apita l
Develo pment
• Good Govern ance a nd Re gu latory
reform
Institutiona l
Effectiveness
Urban efficiency
Spatial arrangement;
Poor on periphery of City;
Public transport;
Densification of inner City;
Development on current City footprint;
Improve economic competitiveness of City.
Goals:
A prosper ous city
Effective and eq uitab le servic e de livery
A well g overn ed an d efficie ntly run
admi nistratio n
5 YEAR PLAN FOR THE CITY
Urba n Efficiency
• Shared ec onom ic growth a nd
• develo pment
• Sustain abl e Urba n Infrastructure an d
Services
• Publ ic Transport Systems
• Integrated H uman Settlem ents
• Safety and Secur ity
• Hea lth, Social a nd Hum an C apita l
Develo pment
• Good Govern ance a nd Re gu latory
reform
Institutiona l
Effectiveness
Strategic Focus Areas
1.
Economic growth
2.
Infrastructure and Services
3.
Public Transport
4.
Housing
5.
Safety and Security
6.
Social Development
7.
Governance
Goals:
A prosper ous city
Effective and eq uitab le servic e de livery
A well g overn ed an d efficie ntly run
admi nistratio n
Urba n Efficiency
5 YEAR PLAN FOR THE CITY
Shared ec onomic growth and
• development
• Sustainable Urban
Infrastr ucture and
Ser vices
• Public Transport Systems
• Integrated Human Settlements
• Safety and Security
• Health, Social and Human
Capital
Devel opment
• Good Governanc e and
Regulator y
refor m
Institutiona l
Effectiveness
Core Objectives
1.
Economic growth
1A Creating an enabling environment for the economy to grow
1B Preparations for Hosting of the FIFA 2010 World Cup in the City of
Cape Town in accordance with FIFA’s requirements and the City’s
developmental objectives
2. Infrastructure and Services
2A Universal access to basic service
2B Conservation of natural resources
2C Effective management of City’s Infrastructure and Resources
3. Public Transport
3A Improve public transport system and services
Core Objectives
4. Housing
4A Improve and develop Integrated Human Settlements
4B Delivery of housing opportunities
5. Safety and Security
5A Foster a safe and secure environment
6. Social Development
• 6A Facilitating the development of a healthy and socially inclusive society
Governance
7. Governance
7A Ensuring enhanced service delivery with efficient institutional
arrangements
7B Management of key financial areas such as income control, cash-flow,
indigent support, alternative income opportunities, asset management and
risk management
7C Establish effective community engagement channels
2010 WC as catalyst
Major investment by SOEs in infrastructure
Private sector investment in anticipation of WC associated
growth
Public Transport biggest beneficiary
Unprecedented opportunity for the City
Time scale of present IDP
Balancing the equation
Economic growth of 6% to 8% requires major investment in new
infrastructure and service capacity
Sustained economic growth requires re-investment into existing
crumbling infrastructure to service existing capacity requirements
Limited resources to do both. Can be achieved by:
Maximising revenue base and income
Optimise rates and tariff increase
Strategic Resource Allocation model critical
Maximise administrative efficiency and
productivity
Ensure urban efficiency
Partnership with Private Sector
Alignment with other spheres of Government
Resource allocation model
1. Strong impact
on growth
0
C1
+
B1
++
A1
2. Support
economic growth
C2
0
B2
+
A2
3. Neutral to
economic growth
-C3
B3
0
A3
C. Discretionary
(Non-Constitutional)
B. Support
Services
A. Basics re
Constitutional
Obligations
Shifting resources towards constitutional obligations and economic growth
Resource allocation model
Critical to link resource allocation to strategic objectives;
Parameter driven approach to budgeting cannot continue;
Service Menu defined wrt basic services and Constitutional obligations;
Basic Services and Infrastructure supporting economic growth prioritised;
Operating Budget and Service Menu needs to be prioritised ito of basic
services, Constitutional obligations and impact on the City’s Goals
Thereafter Capital Budget in support of Service Menu
Resource allocation model will be explained in more detail
1. Strong impact
on growth
0
C1
+
B1
++
A1
2. Support
economic growth
C2
0
B2
+
A2
3. Neutral to
economic growth
-C3
B3
0
A3
C. Discretionary
(Non-Constitutional)
B. Support
Services
A. Basics re
Constitutional
Obligations
Financial Strategies
Reducing cost of servicing long-term debt by creative methods of
borrowing and capital financing;
Reducing dependency on cross-subsidisation from tariff-based
services;
Maintaining rate and tariff adjustments within national norms and
guidelines;
Entrenchment of the Indigent Policy;
Preparing realistic income budgets with adequate provision for nonrecovery to ensure the expenditure reflected for each year can be
fully covered by cash receipts;
Ensuring that adequate cash reserves are maintained to cover
legislated funds and provisions.
Capital Budget
High Level Capital Budget Summary
Funding Sources
External Financing Fund (EFF)
2007/08
2008/09
2009/10
Indicative
Budget
Indicative
Budget
Indicative
Budget
Rm
Rm
1 228
1 065
950
Capital Replacement Reserve (CRR)
657
471
589
Capital Grants and Donations (CGD)
1 873
1 946
1 115
0
0
0
67
41
0
3 825
3 523
2 654
Revenue
Revenue – Insurance
TOTAL
Operating Expenditure Budget
High Level Operating
EXPENDITURE
Budget Summary -
Expenditure Category
2007/08
2008/09
2009/10
Indicative
Budget
Indicative
Budget
Indicative
Budget
Rm
Rm
Rm
Salaries, Wages and Allowances
3 984
4 156
4 343
General Expenses & Other
3 490
3 641
3 805
225
234
245
Bulk purchases
2 171
2 264
2 366
Financing Costs
1 211
1 263
1 320
81
84
88
690
720
752
Appropriations
1 839
1 118
1 205
Activity Based Costs and Internal Billings
2 753
2 871
3 000
16 444
16 351
17124
Indigent Relief
Insurance Claims
Repairs and Maintenance
TOTAL
Corporate Scorecard
Structured on strategic focus areas
of IDP;
KPI’s outcomes based as far as
possible;
Plan and set targets
Simplified and rationalised;
48 indicators;
5 year targets
Platform for implementation of the
IDP;
Mechanism to cascade towards
operational level;
Tool to monitor, review and report;
Reviewed annually.
Check
and
Review
Do –
Implementation
Strategy – Budget relationship
Realities and
Challenges
Visionary
Framework
7 Strategic
Focus Areas
Strategic
Choices
Corporate
Scorecard
Directorate
Scorecards
Departmental
Scorecards
Prioritisation
Objectives
Programmes
KPI’s
Projects
Targets
Budgets
Funding
Regime
How are you affected
Drafting of Statutory Plans as required for
IDP (27 April 07);
Drafting of Business Plans;
Drafting of Directorate SDBIP’s
Drafting of Departmental SDBIP’s
Drafting of Directorate Scorecards
Drafting of Departmental Scorecards
IDP
SDBIP
Budget
Process
Briefings
For
B.Plans &
SDBIP’s
April
Public
Hearings
31 May
Council
Approval
2007/08
Process
28 March
Council
28 June
Mayor
SDBIP
Approval
June Cycle
SDBIP’s to
Portfolios
14 June
SDBIP’s to
Mayor
Thank You!