FINANCING OF THE CITY GOVERNMENT SERVICES IN SOUTHERN AFRICA 5/25/2011 FINANCING OF THE CITY GOVERNMENT SERVICES IN SOUTHERN AFRICA PRESENTER JEROME MUSONDA PHIRI FROM KITWE CITY COUNCIL KITWE CITY COUNCIL 5/25/2011 KITWE CITY COUNCIL

CONTENTS INTRODUCTION- KITWE CITY COUNCIL FINANCING CITY INFRUSTRUCTURE

5/25/2011 INTRODUCTION LG in Zambia is regulated by an Act of parliament called the Local Government Act CAP 281 of the Laws of Zambia Kitwe City Council is a creation of this Law The legal framework gives CG lots of power over LG -approves budgets, approves bye laws for raising money, minister can suspend and dissolve a council. The functions, role and responsibilities of LG are stipulated in the Second Schedule of the LG Act CAP.281 . The LG Act itemizes 63 functions for LG. Councils have neither the capacity nor the financial ability to undertake these functions. KITWE CITY COUNCIL

INTRODUCTION LG is not able to perform the 63 functions of service delivery effectively because there is no legislation currently in place compelling CG to fund LG regulary and adequately . CG grants are not disbursed according to the LG’s work plan for service provision. Financial disbursements from the central treasury are so minimal that they have no impact at all in service delivery and development.

FINANCING CITY INFRASTRUCTURE 5/25/2011 FINANCING CITY INFRASTRUCTURE LG collects its revenues from property taxes , fees and charges The authority/powers for Councils to collect property taxes is enshrined by an Act of Parliament in the Rating Act CAP 484 of the Laws of Zambia Property taxes provide the major source of income for the Council being 31.45% and 30.44% of Kitwe city council’s budgets for the years 2009 and 2010 respectively KITWE CITY COUNCIL

5/25/2011 INTRO CON. Policy framework-CG has come up with a decentralisation policy Policy is meant to transfer both functions and resources to the local authorities Process has been slow –it started in 1993 and resulted into the policy framework which got adopted in 2002. The decentralisation implementation plan only got approved in 2009 The decentralisation process has been slow because of the political set up in which the opposition controls the major councils and CG staff’s unwillingness to cede power to local authorities. KITWE CITY COUNCIL

FINANCING CITY INFRASTRUCTURE 5/25/2011 FINANCING CITY INFRASTRUCTURE CG does make transfers of grants to LG which are of two types-general and specific grants. Government financial support to LG is very neglible to be able to support infrastructure development. In 2009 CG support to the Council’s Budget was only 1.2% while this percentage went up to only 9% in the 2010 budget year. KITWE CITY COUNCIL

WAYFOWARD The solution to the current policy and legislative set up is to implement the decentralisation policy Revise the LG Act so that it compels CG to fund LG regularly , adequately and in accordance with LG’s work plan for service delivery

5/25/2011 KITWE CITY COUNCIL