Our Comment on the Budget Performance review below
While we applaud the City on the principle of consultation, CHRA contends that the tabled budget performance review falls far short of best practice. The review was highly inadequate and did show deeper analysis. For example, we expected the City to provide three budget classifications in the presentation, that is, Economic, Functional and Administrative classification which makes it easy for stakeholders to see the performance of the budget. Administrative classifications can actually measure the performance of each administrative unit within the City of Harare. There was no thorough analysis of the socio-economic environment under which the budget is being implemented. This review was not linked with the current City Strategic plan in terms of progressive achievement of this document. In their 2013 projections the City has listed priority projects but have not set out the priority areas and also failed to link these projects with particular priority areas in the strategic plan. CHRA is working on its independent Budget Performance evaluation which will be presented to stakeholders in due course. Our preliminary view is that the City of Harare budget for 2012 has heavily underperformed since the City has only collected a paltry 64 million.
CITY OF HARARE BUDGET REVIEW
Revenue budget 272m
Capital budget 146m
TOTAL 418m
CAPITAL BUDGET STRUCTURE (ITS FUNDING)
Loans 116
Estates 0.16
Revenue Contribution (RCCO) 13.42
Public Sector Investment Program 10
ZINARA 5.5
J.V –
TOTAL 145.98m
ASSETS TO BE FINANCED (BY THIS BUDGET)
Buildings 11.2
Plants and machinery 26.48
Furniture and equipment 9
Land improvements 3.5
Vehicles 15.2
Roads 8.5
Traffic signals and signs 2
Public lighting 1.4
Reticulation i.e. water 7.2
Sewer 61.8
TOTAL 146.28
REVENUE BUDGET FINANCING
SOURCE OF INCOME ACTUAL $ PERCENTAGE
Fees 77 084 625 28%
Sales 90 799 050 32%
Rent 10 553 300 4%
Rates/supplementary charges 99 720 000 36%
2012 REVENUE EXPANDITURE
EXAPANDITURE ACTUAL $ PERCENTAGE
Salaries and allowances 124 332 185 42%
General & admin expenses 115 982 507 39%
Repairs and maintenance 38 308 260 13%
Capital charges 78 200 770 3%
Revenue Contribution 10 598 070 3%
PROJECTS FINANCED BY THE CAPITAL BUDGET (WITH NO LINE ITEM FIGURES)
 Extension of highlands clinic (construction to commence October 2012)
 Repair of toilets (polyclinics) : Kuwadzana, Rujeko, Budiriro and Glenview
 Renovation of clinics: Completed Edith Opperman, Kuwadzana Clinic, Mufakose Clinic and Rujeko
Work in progress: Beatrice Hospital, Rutsanana Polyclinic and Mabvuku clinic
 New laboratory wing Beatrice hospital (80% progress)
 Completion of Budiriro clinic (material being purchased, works to start in October 2012
 Completion of Kuwadzana extension clinic (material being purchased, works started in July 2012)
H.I.V and AIDS programs
 Started the decentralized A.R.V distribution exercise in at least 12 Poly-Clinics
PLANNING
 Commuter holding bays to decongest the City (Bays under construction)
 One way conversions (on-going)
ZERO LITTER
 Additional 27 refuse trucks to be purchased
 Four additional skip trucks to be purchased in the next six weeks
 To avail litter bins at all district offices
ROADS
 Gazaland Commercial Centre
 Road: Mufakose to Crowborough Sewerage treatment works
 Road patching: Amalinda, Arcturus, Mukonde street in Mufakose
 Drain Clearing in progress
 Road formation: Dzivarasekwa extension
PUBLIC LIGHTING
 80% High mast lighting now functional
 40% Road street lights now working
 90% Traffic signals now working
 92% Toilets repaired by P.D.U (Nenyere)
 Massive water and sewer pipe replacements (ongoing)
PERFOMANCE: REVENUE BUDGET
 The July 2012 revenue budget amounts to 272m and up until July 2012 collections were projected at USD160m and actual collection amounted to 64m
 The said collections funded the above mentioned projects
CHALLENGES FACING THE REVENUE BUDGET OF THE CITY
 Unemployment
 Low salaries country wide in general
 Cash flow constraints
 Standstill budget
 Non remittance of vehicle license fees: to date $1.25 million has been remitted to the city against an expectation in excess of 7m from ZINARA
 Debtors owe the city 300m
 Limited raw water sources in the short term i.e. Chivero, P/Edward and Darwendale
 land shortage council wide
HARARE CITY COUNCIL PROPOSED PROJECTS FOR 2013
N/B: There were no stakeholder consultations on these projects
 Zero litter programs
 Public toilets operationalization programs
 Social infrastructure: play grounds, halls, swimming pools and libraries
 Complete poly clinics
 Ramps where required for the disabled
 Street lighting, traffic signals, potholes and quarry resuscitation
 One way conversations
 Pipe replacements
 Connectivity i.e. LAN / WAN
 Ambulances (15 additional)
 Generators for district offices (Zero queues at district offices)
 Additional computers at cash collection points
 HIV and AIDS: Decentralization of ARVs to all poly clinics throughout Harare
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