AFRICA REGIONAL SEMINAR ON PARTICIPATORY BUDGETING

STRENGTHENING CITIZEN’S VOICES IN REVENUE & EXP. PLAN

INTRODUCTION• Consultation with regard to IDP, Budget, Annual Report, Tariffs, Policies and Bylaws

• Although participation is improving, attendance to date is poor

• But in infancy of our democracy

• New legislative processes in place – makes consultation mandatory

• Annual Citizens’ Survey being done – measure quality of life for all

• Key stakeholders : Residents, Business, Civic Organisations, Ratepayer Associations, Wards, and Regions

• The role of political office bearers plays a major role. For example, as regards the MPRA, ward councillors explained the new policy to their wards

SERVICE DELIVERY, BUDGET IMPLEMENTATION & PERFORMANCE F/WORK

LTDF2020 vision City development priorities

IDP 2003/2007

IDP Review Process

2006/2007

IDP Review Process

2007/2008

BUDGET/MTIEF 2007/2008

BUDGET/MTIEF 2008/2009

SDBIP

SDBIP

IDP Review Process

2008/2009

SDBIPBUDGET/MTIEF 2009/2010

PERF PLAN

PERF PLAN

PERF PLAN

NB :Performance plans included in Annual Report

Copyright © 2000 Monitor Company, Inc. — Confidential — JOHDRB-CTY-Vision Workshop-11/06/00-CP 1

Deepen understanding of IDP

Provide substantive comments

Prepare for Ward Committee mtgs

To test our

current IDP

To determine

what areas to change in the revised version

Ward Comments

Ward Priorities

Ward Budgeting

Series of specific workshops held seperatelyfor each key sector

Nov2007

2007/ 2008IDP

PLAN OWNER

workshops

Feb 2008 Feb 08Feb2008

Mid March2008

IDPCOUNCILLOR

LEKGOTLA(Assagay )

IDPWard

CommitteeWorkshops

30 June 2008

SectorSectorWorkshopsWorkshops

BIG MAMA 7

IDPworkshop

REVISED ADOPTED

2008/9IDP sent to

KZNPA

EXCO & COUNCIL considers FINAL IDP

Multi -Stakeholder Forum to discuss IDP

CRITICAL MILESTONES

First Draft of

IDP

30 March2008

NB : IDP PROCESS INTEGRATED WITH BUDGET PROCESS. WHERE COMMON DATES COMMON MEETING HELD

PPeerrffoorrmmaannccee

PPllaannnniinngg

Measuring

Performance

The Integrated Development Plan(8 Point Plan)

Organisational Performance Management

Linked to the 5 National Key Performance Area's:1. Basic Service Delivery2. Local Economic Development3. Governance and Public Participation4. Municipal Transformation and

Organisational Development5. Municipal Financial Viability and Management

AND Which measures delivery on the Strategic Focus Areas in terms of Programmes in the IDP.

Individual Objectives and Individual Performance Agreements/Plans

Department Objectives / Business Plans/SDBIP- Projects and Subprojects

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PUBLIC

PARTICIPATION

PUBLIC

PARTICIPATION

CIVIL SOCIETY COUNCIL

BUDGET PROCESSThe development of the municipal budget is a complex and lengthy process. As this entails the management of council funds, we take a consultative approach with civil society and business. In addition, the budget is developed within the guidelines of the Municipal Finance Management Act as well as the goals of the City’s Integrated Development Plan (IDP). The latter facilitates the optimum use of public funds in achieving common goals. Below is a description of the process.

September October November December January February March April May

• Process begins with assessment of the previous year’s Budgets.

• Development of the first draft Budgets.

• Review of IDP.

• Draft tariff estimate report commences.

• Draft Capital Budget isdeveloped.• Draft Operating is Budgetdeveloped.

•EXCO (Council’s Executive Committee) discusses the proposed tariff increases and lifeline policies.

• Council approval of Capital Budget.

• Draft Operating Budget is presented to Council.

• Operating Budget review.

• Presentation of revised Operating Budget to EXCO and Council.

• Finalisation of tariff estimates and rates increases.

• Presentation of Budgets to Business.

• Proposed increases tabled at Council by the Mayor.

• Public hearings on Budgets.

• Regional hearings on Budgets.

• Approval of final Budgets by EXCO and the rest of Council.

• Service Delivery Budget Implementation Plan (SDBIP) finalised.

Refinement of Operating Budget at Each Stage BUDGETADMINISTRATION

BUSINESS

THE BUDGET IS AN INTEGRATED PRODUCT DEVELOPED WITH INPUT FROM MAJOR STAKEHOLDERS

LEGISLATION

NB : IDP PROCESS INTEGRATED WITH BUDGET PROCESS. WHERE COMMON DATES COMMON MEETING HELD

Approval by Standing Committee, EXCO and Full Council

Approval by Standing Committee, EXCO and Full Council

Publically advertised for objections(30 days)

Publically advertised for objections(30 days)

If no objections received

If no objections received

TARIFFS & POLICIES

If objectionsreceived

If objectionsreceived

ImplementationImplementation

ImplementationImplementation

Objection reviewed by Council

Objection reviewed by Council

“Well arranged time is the surest mark of a well arranged mind”

Approval by Standing Committee and EXCO

Approval by Standing Committee and EXCO

Publically advertised for objections(30 days)

Publically advertised for objections(30 days)

If no objections received

If no objections received

BYLAWS

If objectionsreceived

If objectionsreceived

Govt GazetteGovt Gazette

Council approvalCouncil approval

ImplementationImplementation

Objections reviewed

Objections reviewed

“Everything that lives, lives not alone, not for itself”- William Blake

COMMUNICATION• All information on IDP, Budget, and Annual Report are published on our website and various publications. We have had an excellent response. For example, when our valuation roll released, our server could not cope as it was inundated with hits (410 000 in the first week). A mirror server had to beput up. This shows that communication and participatory process is effective

• Publications : Metro Beat and Ezasegagasini

• Call Centres : Electricity, Engineering, Water, Transport and Revenue

• Regional Centres – one stop shops

• Future Projects : SMS and E-Mails

“I am an artist at living – my work of art is my life”- Suzuki

CASE STUDYRates Awareness Campaign : 2000

KEY FACTS OF THE CAMPAIGN• The need for the campaign :

- A legacy of mistrust

- A new policy on rates

- The need for a council-community partnership

• Key objectives :

- To empower communities with information about local government and projects being run in their area

- To educate residents about the concept of rates, the reason forrates payments, what rates would have to be paid, etc

- To enhance civic pride and create a sense of civic responsibility, and thus channel positive community participation into developmental local government

• Central theme : “One hand washes the other”

• Campaign run internally

PHASES OF THE CAMPAIGN• Phase 1 : Initiating contact with communities and providing an introduction to local government : posters and ‘knock and drop’ pamphlets

• Phase 2 : Empowering communities with rates information : door to door visits, second pamphlet, survey forms, community meetings, mass ward meetings

• Phase 3 : Promoting civic pride and responsibility : third pamphlet, additional community meetings and advertising campaign

• Phase 4 : Consolidation : appropriate structure put in place – Masakhane Working Group now responsible for this campaign on an ongoing basis

“We are all here for some special reason. Stop being the prisoner of your past. Become the architect of your future”

EXPERIENCES & CHALLENGES• Vandalising of posters

• Resistance from ratepayers

• Opposition from community organisations and councillors

• Fieldworker task audits and payment disputes

• Negative press on officials’ performance

“Trust yourself. Create the kind of life you will be happy to live with all your life. Make the most of yourself by fanning the tiny, inner sparks of possibility into the flames of achievement”- Foster C. McClellan

RESULTS & OUTCOMES• Survey results showed :

- 85% of respondents thought that the household visits were valuable

- 55% of respondents indicated that they had paid their rates due to the campaign

• Increase in rates payments

• Changed attitudes and perceptions

“Never forge the importance of living with unbridled exhilaration. Never neglect to see the exquisite beauty in all living things. Today and this very moment is a gift. Stay focused on your purpose”

LESSONS LEARNT• Non-payment is often due to historical relations of mistrust between communities and the Council

• The active leadership role of councillors is required

• The most important mechanism is house-to-house visits by well trained fieldworkers

• Staff need to change their attitudes to inspire confidence and trust from residents

• Tight and careful management of resources is required to ensure value for money

“When you are inspired by some great purpose, some extraordinary project, all of your thoughts break their bonds : your mind transcends limitations, your consciousness expands in every direction and you find yourself in a new great and wonderful world” - Patanjali

SOME OF THE FRUITS OF OUR ACTIONS IN STRENGTHENING THE VOICES OF OUR CITIZENS

• Excellent collection rate (2006/2007)

- Electricity : 98%

- Water : 96%

- Rates : 94%

• Unqualified audit report

• Credit rating

- Short Term : A1+

- Long Term : AA

“The secret of happiness is simple : find out what you truly loveto do and direct all your energy towards doing it”

LOGOSOFT• We are an information-led Municipality

• Accordingly, systems play a key role

• We are strong on e-government

• Creating a broadband fibre optic link to ensure accessibility to telephony and internet

• In addition, we launched the Logosoft brand in order to ensure accessibility to customised local government solutions, especially an end-to-end, integrated financial system. We own the intellectual property and will make it available to other cities at a nominal cost

“Good people strengthen themselves ceaselessly”- Confuscius

OVERALL SOLUTION MAP

Performance Management

GIS

Citizen services

Customer portal

Kiosks

Call centers

Human Resource Management

Employee Management

Staffing

Attendance Management

Fleet Management

Customer Service

Core Fleet Maintenance

Accident management

Tyre/ Fuel management

Planning

Compensation & Benefits

Employee Development

Ramco Business Process Platform

Revenue Management

Contract Management

Supply Chain Mgt

Accounting & Budgeting General Ledger

Goods Receipt

Customer Management

Service Order

Management

Tender Management

Contract execution

Quotations & Purchase

Orders

Interface to Service

provision

Property Management

Accounts payable

Budgets

Property, Plant &

Equipment

Loans redeemed

Project & Contract Admin

Billing

Work Order Management

Debt Management

Revenue Receipting

External Financing

Funds

Routine accounting

Expense monitoring

Asset financing reserve

Consolidated loan fund

Bank Recon

Bank

Cash

Journal Voucher

Consolidation

Capitalization & Depreciation

Inventory

E-Procurement

Asset Management

Maintenance Planning

Asset induction

Work Management

Reliability & Risk Mgmt

Maintenance Budgets

E-Valuation

CONCLUSION• To date mixed responses received from stakeholders.

• Some appreciate the efforts of the Municipality

• Whilst others only want see what is in it for them

• We are an emerging democracy – still have along way to go

• There will always be complaints and criticism

• Need to undertake gap analysis – to commit to equity and fairness in respect of service delivery

• Will never forget the reaction of an old lady who lived in abject poverty and received a Council home for the first time – “I can now die in peace!”

“The families who live in shacks with no running water, sanitation and electricity are a reminder that the past continues to haunt the present” – Nelson Mandela

THE END – THANK YOU

“Great dreamers’ dreams are never fulfilled, they are always transcended”- Alfred Lord Whitehead