presentation to provincial advisory forum (paf)

Presentation to Provincial Advisory Forum (PAF)

Helen ZilleExecutive 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


Housing Service Delivery

City has accelerated provision of housing opportunities (top structures & fully serviced erven):

2003/04 - 1 808 housing opportunities




2 499 land restitution claims resolved


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 & InfrastructureBarriers 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)


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


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


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 issuesCCT’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%


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


Revenue ManagementConcern 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


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

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

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 DevelopmentLocal 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

presentation to provincial advisory forum (paf)

Documents

electricity infrastructure

infrastructure backlogs

key programmes

capital budget implementation

policies processes

organisational structure

alignment of staff skills

timelines budget