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Presentation to Provincial Advisory Forum (PAF)

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

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Presentation to Provincial Advisory Forum (PAF)

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  1. Presentation to Provincial Advisory Forum (PAF) Helen Zille Executive Mayor of Cape Town 16 July 2007

  2. 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

  3. 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

  4. 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

  5. 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

  6. 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)

  7. 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

  8. 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

  9. 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

  10. 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)

  11. 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

  12. 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

  13. 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

  14. 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

  15. 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:

  16. 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

  17. 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

  18. 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

  19. 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

  20. 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

  21. 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”

  22. 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

  23. 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

  24. 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

  25. 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%)

  26. 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

  27. Thank You Enkosi Dankie

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