FINANCING CITY GOVERNMENT
SERVICES IN SOUTHERN AFRICA
CITIESNETWORK WORKSHOP 26 MAY 2011
Presented By:
RM Gertze –
Strategic Executive: Finance
And
Piet Du Pisani
Strategic Executive: Infrastructure, Water and Waste Mngt.
OUTLINE
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INTRODUCTION
POWERS
FUNCTIONS
INTERGOVERNMENTAL
RELATIONS
 MANAGING CITY REVENUES
 PROJECTS FOR FUNDING
 CONCLUSION
City 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 of Windhoek
 Capital City of Namibia
 Windhoek is seat of Government
 Windhoek is also the centre of commerce
City of Windhoek
 Population of approx. 330,000 with
additional 50,000 commuter population
 Area of jurisdiction 112 square kilometers
City of Windhoek
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Governance:
15 part time Councillors
Chief Executive Officer
9 Heads of Department
48 Divisions
1800 employees
City 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
POWERS
 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
POWERS
 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
POWERS
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:
POWERS
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;
POWERS
 (d) any interest or dividends derived from investments;
 (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.
POWERS
 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.
FUNCTIONS
 Part V: Powers, Duties, Functions, Rights
and Obligations of Local Authorities
 Section 30 (a – z)
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
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
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$891million over five years
Managing City Revenues
 Accurate client database
 Tariff setting
 Cost containment
 Debt collection
Potential projects for funding
 Artificial aquifer recharge project – N$ 240
Million
 Ujams waste water treatment plant – N$
120 Million
 Gammans waste water treatment plant – N$
60 Million
Conclusions
 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”