1. 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.

2. OUTLINE  INTRODUCTION  POWERS  FUNCTIONS  INTERGOVERNMENTAL RELATIONS  MANAGING CITY REVENUES  PROJECTS FOR FUNDING  CONCLUSION  INTRODUCTION  POWERS  FUNCTIONS  INTERGOVERNMENTAL RELATIONS  MANAGING CITY REVENUES  PROJECTS FOR FUNDING  CONCLUSION

3. 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 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%

4. City 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

5. City 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

6. City 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

7. 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  City does not receive support from government for capex or opex  City still has the responsibility for trade services like electricity, water and sanitation

8. 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  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

9. 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  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

10. 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: 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:

11. 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; 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;

12. POWERS  (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.

13. 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.  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.

14. FUNCTIONS  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)

15. 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

16. 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

17. 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

18. Managing City Revenues  Accurate client database  Tariff setting  Cost containment  Debt collection  Accurate client database  Tariff setting  Cost containment  Debt collection

19. 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  Artificial aquifer recharge project – N$ 240 Million  Ujams waste water treatment plant – N$ 120 Million  Gammans waste water treatment plant – N$ 60 Million

20. 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.  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.

21. Thank You “city of many faces”