Presentation to
Provincial Advisory Forum (PAF)
Helen Zille
Executive Mayor of Cape Town
16 July 2007
Introduction
Report back structured around 5 KPI’s of Local Government Strategic Agenda:
-
institutional capacity & municipal transformation
-
basic service delivery & infrastructure
-
financial viability & management issues
-
good governance
-
local economic development
Institutional Capacity & Municipal Transformation
The City of Cape Town’s organisational realignment process has so far produced
the following results:
- City Manager & executive management team aligned with Mayco structure
- Placement of 21 500 employees into organisational structure with generic,
comparable designations & job descriptions (where no organogram
previously existed)
- Basic parity based on benchmark grades, salary scale & conditions of
service (in place of pay scales of 7 former administrations)
- Foundation for implementation of job evaluation & full parity over next 2 yrs
Filling of Vacancies
- 1800 critical vacancies filled
- Further 200 posts will be filled to speed up capital budget implementation
- 1000 vacancies to be filled in utilities departments to speed up delivery
Institutional Capacity & Municipal Transformation
Focus for next 3 years: Organisational Development Plan to improve efficiency.
This involves the organisation & deployment of staff for service delivery funded through the Restructuring Grant, to be implemented through 3 key
programmes:
Quality Management programme to:
- document & improve through business processes re-engineering, key
business processes & functions
- confirm best practice through use of external ISO;9001:2000 certification
- develop & implement mechanisms to measure productivity improvement
Institutional Capacity & Municipal Transformation
HR Strategy programme to:
- support managers developing & implementing staffing strategies & plans –
i.e. the alignment of staff & skills to service delivery
- provide all supporting systems, policies & processes to ensure
implementation of staffing plans
- develop & implement mechanisms to measure return on investment in staff
development
Change Management programme to:
- implement comprehensive change management programmes which will
support the HR & Quality management programmes
- conduct staff climate/culture surveys
Basic Service Delivery & Infrastructure
Bulk Infrastructure
Significant increases in 2007/08 budget to address infrastructure backlogs:
-
R500 million: electricity infrastructure (next 2 yrs)
R150 million: new solid waste landfill sites & infrastructure (next 3 yrs)
R37 million: Potsdam Wastewater Treatment Works (further R15 million next yr)
R13 million: water treatment works (further R31 million in coming yrs)
Basic Service Delivery & Infrastructure
Bulk Infrastructure (cont)
Use of bucket system to be phased out over next 5 years (currently 2 857 in use)
Water backlog in terms of basic requirements eliminated – only maintenance
needed & provision for new settlements
Informal Settlement Master Plan sets out database, timelines & budget for
servicing & eventual upgrading of all 226 informal settlements in Cape Town
Basic Service Delivery & Infrastructure
Housing Service Delivery
City has accelerated provision of housing opportunities (top structures & fully
serviced erven):
2003/04 1 808 housing opportunities
2004/05 3 469 housing opportunities
2005/06 4 585 housing opportunities
2006/07 8 335 housing opportunities
2 499 land restitution claims resolved
Basic Service Delivery & Infrastructure
Housing Spending
Under-spending on some projects due to delays in PGWC subsidy approvals &
lack of project management capacity within City
8 Additional project managers appointed for housing development projects
Funding arrangements in place to address pre-planning feasibility studies for
large projects
Land acquisition process reworked to ensure availability of appropriate land for
housing
Basic Service Delivery & Infrastructure
Barriers to increased infrastructure & basic services provision
Blockages to obtaining land & releasing it
- Estimated additional land needed for housing in Cape Town – 1000 hectares,
at cost of R1,2 billion
- Delays created by statutory processes (EIAs, TIAs etc) of up to 18-24 months
Lack of a dedicated source of adequate funding for acquisition of land
Delays by Province in granting City phase 1 of Housing Accreditation
Negotiations with Province with regard to purchasing of portion of a site for an
electricity substation in Roggebaai remain unresolved (risk to 2010 stadium)
Basic Service Delivery & Infrastructure
Barriers to increased infrastructure & basic services provision (cont)
Provision of electricity by ESKOM & lack of funding alignment
Poor adherence to specifications in low-cost housing should be resolved (in
view of problems at N2 Gateway) - have resulted in sub-standard infrastructure
with implications for future maintenance
Financial viability & management issues
Actions to be taken in response to 2005/06 Auditor-General Report: Matters
of emphasis:
“Recovery of Irregular Expenditure - Payroll expenditure”:
- A Remuneration Policy was adopted by Council to prevent a re-occurrence of
irregular expenditure not accounted for – SCOPA to report
“Control weaknesses in respect of human resources management”:
Compliance will be ensured by:
Improved management of HR function
- Revised delegation of authority to line management
- Adoption of Remuneration Policy by Council
-
Financial viability & management issues
Actions to be taken in response to 2005/06 Auditor-General Report (cont)
“Debtors”: Appropriate measures taken to recover or write-off amounts:
-
Irrecoverable amount of approximately R1,5 bn has been written-off
Final demands sent out to some 400 000 debtors
Internal accounts resolved through special project
Provincial & National government debt being resolved through meetings
Appropriate recoveries of staff & councillor arrears via payroll system
Financial viability & management issues
City of Cape Town’s response to LG MTEC3 Issues
IDP/Strategic Priorities
City responding to challenges through its new 5-year IDP (commenced on 1 July
2007).
Key focus of the IDP is infrastructure-led economic growth.
Operational budget increased to capacitate City to spend expanded capital
budget
Financial viability & management issues
CCT’s response to LG MTEC3 Issues (cont)
Capital budget
Capital budget increased from R2.5bn (2006/2007) to R4bn (2007/2008)
Capital budget expenditure:
2005/06 (R’m)
2006/7 (R’m)
(up to 9 July 2007)
Budget
2129
2544
Actual
1520
1909
% Expenditure
71,4%
75%
Financial viability & management issues
CCT’s response to LG MTEC3 Issues (cont)
City amongst best performing Metro’s in spending Municipal Infrastructure
Grant
All MIG allocations spent in last 2 yrs:
- 2005/06 – full allocation of R167,802,499 was expended
- 2006/07 – full allocation of R196,656,897 was expended
Financial viability & management issues
Revenue Management
Concern expressed over ability to sustain revenue management
Debt management campaign brought unpaid bills down from R4,5 billion to R3,5
billion in 9 months
Priority actions pursued against:
Top 1000 debtors, reduced this outstanding debt by R260 million
Government departments, reduced by R150 million
Councillor & staff arrears, reduced by R7 million
Credit Control & Debt Collection By-law published in June 2006 - empowers City
to carry out debt management actions
Financial viability & management issues
Revenue Management (cont)
Indigent Register
- Homeowners with household income of less than R1740,00 per month
invited to register as indigent
- To date – approx. 8000 applications received & 4300 residents registered
with verification process to follow
Debt Write-off
- Council to write off R1,5 billion of R3,5 billion debt owed by residents
- Debt written off was not cost effective to collect as it accrued pre-2003
Good Governance
Public Participation actions towards drafting of IDP
IDP public participation process during Nov & Dec 2006
Extended process of engagement to consult communities & stakeholders around
their needs
Communities asked to identify priority issues within specific wards. Key priorities
identified – employment, crime reduction & housing
Good Governance
Status quo of functional ward forums
Purpose: to facilitate participation of local communities in civic matters
Sector-based or geographic-based representation or a combination
Registration for interest groups closes August 2007
Subcouncils to decide sectors &/or geographic areas per ward in Aug 2007 &
elections for ward forums to take place in Oct 2007
First ward forum meetings in Nov 2007
Good Governance
Establishing organisational structure for combating drug abuse
Designed to interface with provincial structures, as envisioned by National Drug
Master Plan (NDM) 2006-2011:
- Section 4.5.1 of NDM stipulates that local government must set up Local
Drug Action Committees (LDACs): “local government drives the LDACs in
terms of establishment & functioning”
- Committees must comprise “people from all sectors involved in substance
abuse & related problems”
- LDACs allow community organisations to liaise with City officials, City
officials to liaise with Province: section 4.5.1 states “the local government
official responsible for [each] LDAC liaises with the provincial co-ordinator of
the Department of Social Development”
Good Governance
Establishing organisational structure for combating drug abuse (cont)
Role of LDACs to guide budgeting & resourcing priorities by reporting back
on specific drug-related challenges in each area
City’s provisional plan is establish 8 LDACs (1 in each health district) & to
have 1 Metro Police, 1 Social Development & 1 City Health official running
each of 8 LDACs
In addition, Section 4.4 of NDM states that Province is expected to set up
Provincial Substance Abuse Forum, for Provincial officials & CCT officials
responsible for LDACs to liaise
Local Economic Development
Local Economic Development Strategy
Strategy for economic development & job-creation based on overall strategy of
infrastructure-led economic growth as set out in IDP
Increased investment in economic infrastructure through increase in capital
budget - from R2,5bn to R3,8bn
Initiatives to unblock economic development
- red-tape review & one-stop facility for developers
- strategic release of city-owned land for industrial & commercial
development
- investigation into R400 million Municipal Broadband Network
Local Economic Development
Local Economic Development Implementation Plan
Skills Development Strategy initiated to assist with addressing:
-
large scale job creation challenges facing city
large scale mismatch of skills in local economy
Implementation Plans being development for 8 districts to drive LED forward
Local Economic Development
Expanded Public Works Programme (EPWP)
Council is currently in process of debating an EPWP employment policy to
minimise the risk of patronage
Total of 10,817 local unemployed benefited from programme
Achievements against national targets:
-
Women - 21% (national target: 40%)
Youth - 38 % (national target: 30%)
People with disabilities - 0.43 % (national target: 2%)
Conclusion
City has made significant progress to establish foundations for service delivery
in terms of financial & human resource capacity
Focus in terms of 2007/08 IDP & Budget is on infrastructure-led economic
growth for job creation
Thank You
Enkosi
Dankie