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Section F: Urban Management 























































































City of Tshwane 
2020/21 Built Environment Performance Plan 


Section F: Urban Management 

The concept of urban management maintains the ongoing business and operations within a 
Metropolitan. However, through the City Support Programme (CSP) the need to focus this approach 
to spatially targeted investment areas (CLDP) have been realised to maintain and grow investor 
confidence and continued investment momentum. Not only does this require the rendering of day- 
to-day services from the City, but it also requires a focussed approach to build private sector 
partnerships and a governance model which promotes marketing and social services. 

In terms of the City's Theory of Change, the principle of collaborative planning, implementation and 
management forms the central theme for urban management specifically focussed within the CLDP 
framework. This principle is complimented by the spatial transformation principle, through actioning 
the establishment urban management frameworks, and the principle of financial sustainability 
through the provision of operational budgeting to support the rendering of day-to-day operations. It 
should also align to the vision of establishing sound inter-governmental and inter-departmental 
planning practices to promote bi-lateral decision making and integrated allocation of financial 
resources. 



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IGNITING EXCELLENCE 


Figure 94 Theory of Change 


City of Tshwane 
2020/21 Built Environment Performance Plan 


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City of Tshwane 
2020/21 Built Environment Performance Plan 


The principle of collaborative planning, implementation and management shapes the vision of 
establishing an urban management framework which will further attract and sustain private 
investment and growth. The outcomes required to achieve this includes effective public-private 
partnership agreements specially targeted and designed to meet the needs representative of each 
CLDP. Actioning this requires an evaluation of stakeholder needs and an understanding of growth 
opportunities that will arise from the investment portfolio make-up, together with stakeholder and 
public relationships to efficiently manage and maintain precincts. This will ensure the establishment 
of precincts which align to the spatial vision of the City. 

In terms of the BEVC, the following section has been structured to align to the last component within 
the value chain. Urban management deals with the "on the ground" workings within targeted 
precincts and includes planning, precinct management initiatives as well as institutional 
arrangements. This section will discuss the specific management steps taken by the City, above and 
beyond its regular functions, to ensure the (re)development of specific spatially targeted areas. 

24 Precinct Management Planning 

24.1 Existing Precinct Management Plans 

There are several developed precincts plans that serves as special development and management 
plans in the relevant areas. The following precinct plans has been developed: 

■ Inner City Macro Framework 

■ Government Boulevard 

■ Ceremonial Boulevard 

■ Northern Gateway 

■ Salvokop 

■ Civic Precinct 

■ West Capital 

■ Mamelodi Hostels 

■ Saulsville Hostels 

■ Roslyn Industrial Park 

■ Mabopane Station Precinct 

■ Mamelodi DIPS 

24.2 Establishing Precinct Management 

24.2.1 Setting up Urban Management Units across The City of Tshwane 

Urban Management covers a range of issues from the maintenance of infrastructure, public buildings 
and spaces through to policing and marketing. The base objectives of urban management are to 
maintain public capital investments and to enforce basic rules of public life, with the ultimate 



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City of Tshwane 
2020/21 Built Environment Performance Plan 


objectives relating to the contribution to an improved quality of life that effective urban management 
might bring to residents and other users of the space under management (Pernegger & Godehart, 
2007). Figure 95 illustrates a structure of urban management explored in various municipalities. 

The bottom level of urban management consists of simple maintenance issues such as cleaning of 
storm water channels, fixing potholes and removing litter. The second level deals with the 
enforcement of by-laws such as illegal dumping and informal trading. The third level is about policing 
and crime prevention. The highest levels are concerned with place, marketing the managed area to 
outsiders. 



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As one moves from 'getting the basics right' to offering 'a premium service', it is likely that operational 
budgets will require augmentation of capital items and would require the establishment of 
partnerships with the private sector, as explored above. 

Figure 95 Structure for Urban Management 


Premium city Capex 

management service 



them right 


24.2.2 Funding Urban Management 

Four strategies may be considered to secure the resources needed for improved management: 

■ Strategy 1: Obtain value for money and efficiency gains. A starting point for this type of 
strategy is to identify areas where public urban management resources are being wasted 
or where losses are being incurred. 

■ Strategy 2: Increase the allocation of public resources. This strategy is complementary to 
strategy 1. It aims to seek secure increased resource allocation to urban management 
functions. In this case, it may be considered to ring fence funds for the node areas. 

■ Strategy 3: Capture complementary revenue streams. A third mechanism for securing 
additional resources is to use public assets to generate revenue streams, which in turn are 
used to fund supplementary urban management activities. In strategies of this type, 
sustainable revenue streams are generated by the development of local public assets, 
such as the leasing of public land or facilities. All or part of this revenue can subsequently 


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City of Tshwane 
2020/21 Built Environment Performance Plan 


be allocated to improve urban management activities (Urban Land Mark, 2009) - it 
should, however, be ensured that these funds are appropriately ring fenced. 

■ Strategy 4: Mobilise urban management partnerships. In this approach, the resources of 
actors in the private sector, nongovernmental organisations and community groups are 
mobilized into effective area-based public management partnerships. Urban 
management partners that are typically mobilised include: 

o Property owners; 

o Informal traders (contracting with trader's associations or cooperatives to provide 
security cleaning, security and management services for informal markets); 

o Small businesses (formal/informal agreements to provide security and cleaning 
services for a precinct); 

o Taxi operators (contract with taxi associations to provide management and security 
services for taxi ranks); 

o Sports clubs (sport clubs provide maintenance service in turn for user rights); 
o Community groupings; and 
o Church or religious groups. 

In this case, it can additionally be considered to outsource urban management functions to the private 
sector, cooperatives and community-based organisations. Improvement districts are typically 
considered in this instance, however, given the strong residential character of most of Tshwane this 
mechanism may not be appropriate and may need to be hybridised into a social/community 
organisation that is supported by the private sector through corporate social investment. With 
consideration of these complexities, it is recommended that a policy/framework to address urban 
management within the nodes be established. The framework should also be area specific, due to the 
diversity in Tshwane. 

25 Institutional Arrangement 

25.1 Aligning resources towards urban management and coordination 

The City of Tshwane (CoT) has embarked on an augmented process of integrated budgeting which 
allows for conducting various "what-if" scenario analysis in order to enhance overall budget 
credibility, relevance and sustainability. 

The results from the Budgeting Simulator© system (for each scenario conducted) will be utilised to 
inform and compile a multi-year CoT budget in which: 

■ Cognisance has been taken of historic trends and drivers of individual budget line items, 
based on audited historic financial information; 

■ Growth in individual budget line items as well as the interrelationship between budget 
line items have been analysed and considered; 

■ The Operating and Capital budget have been integrated and is therefore inclusive of the 
contemporaneous effects of both budgets; 



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2020/21 Built Environment Performance Plan 

■ Ratio analysis has been conducted in terms of: 
o Operating and net cash flows; 

o Liquidity; and 
o Borrowing; 

■ The funding of both the Operating budget and the Capital budget have been analysed; 

■ Budget line items correspond to official Return Forms and is therefore reconcilable to 
mSCOA line items. 

25.1.1 The Process 

25.1.1.1 Step 1: Preparation of a Status Quo forecast over a five-year planning horizon 

The Status Quo forecast (SQ) provides a bird's-eye view of the forecast CoT financial position inclusive 
of: 



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■ The current CoT policies and strategies as expressed in financial terms; 

■ The current CoT loan book (all long-term loans and bonds); 

■ The current CoT MTREF operating budget; 

■ The current CoT capital budget projects which are already committed and prioritised 
according to the output of the Capital Planning System, including the resultant effects on 
the: 

o Cash flows during the implementation period; 

o Operating budget upon and after implementation. The effect on depreciation is 
automatically included. Effects on other operating budget line items can be included 
on a project-by project basis, based on available pre-feasibility or feasibility studies; 

■ Historic audited amounts for each forecast operating budget line item, as well as working 
capital, reserves and borrowing. 

Based on these inputs, the consolidated and integrated SQ forecast provides quantified and selected 
graphic results on, amongst others: 

■ Each individual return form line item; 

■ The accounting and cash operating surplus/deficit; 

■ Operational and capital project cash flows; 

■ Movements in the total cash position; 

■ Various growth percentage analyses; 

■ Operational cash flow ratios and measurement; 

■ Liquidity ratios and measurement; 


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2020/21 Built Environment Performance Plan 

■ Borrowing position ratios and measurement; 

■ Analyses of the operational budget funding position; 

■ Analyses of the capital budget funding position. 

25.1.1.2 Step 2: Critically assess the SQ results and adjust accordingly 

An assessment of the results will enable any identified issues to be addressed through the following 
adjustable levers: 

■ Adjusting forecast growth percentages in individual line items; 

■ Adjusting various working capital/reserves/borrowing policies and strategies; 

■ Critically analysing and adjusting individual committed projects and prioritisation in terms 
of capital expenditure, future operating income and expenditure, possible debt funding 
and grant funding. 

The resulting adjusted SQ.forecast will then be analysed further in the next step, with a particular view 
on addressing any remaining funding gaps. 

25.1.1.3 Step 3: Test the effects of new debt and planned projects 

To test the effects of any new long-term debt instruments, a further three forecast scenarios can be 
prepared. Utilising the adjusted SQ forecast (or normal SQ forecast if no adjustments were required), 
the following three scenarios can be tested: 

■ Addition of new vanilla debt instruments with no changes to the project list; 

■ Addition of planned projects (on top of already committed projects) with no changes to 
the debt profile; 

■ Addition of both items in 1 and 2 above. 

Quantified and selected graphic results are again presented for each of these forecasts, enabling 
comparison and identification of possible areas requiring further attention. 

Further adjustments can be made to test the impact on the total integrated budget of: 

■ Possible changes to CoT policies and strategies; 

■ Adjustments to the CoT operating budget; 

■ Changes to the CoT project list, including reprioritisation, funding, operational impact 
upon implementation, etc; 

■ New debt; 

■ Approval of any planned projects. 

25.1.1.4 Step 4: Coordination, consultation and budget compilation 

After assessing the integrated budget, the process of coordination and consultation may be 
conducted, taking into consideration the results of the different planning scenarios. 



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The aim is to support inter-sectoral municipal coordination as well as consultation with other 
stakeholders at all levels of government. 

The proposed investment and funding strategies for the intergovernmental project pipeline as 
included in the Capital Planning System and assessed on an integrated level in the Budgeting 
Simulator©, can be discussed and coordinated with all relevant stakeholders. Further and differing 
funding possibilities can be investigated and assessed according to steps 2 and 3 above. 

Upon completion of the coordination and consultation process, the integrated operating and capital 
budgets can be compiled and submitted to the approval process. 

The table below sets out a summary of the process's alignment with and support to applicable 
reporting requirements. 

Table 40 Reporting Requirements 



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Applicable reporting requirement 

Alignment 

1 

mSCOA 

Line items are according to official return forms and 
therefore reconcilable to mSCOA 

2 

Funding of both operating and capital budgets 

Analysis of the funding position of both the 
integrated operating and capital budgets 

3 

Credibility of budget, revenue framework, 
budget assumptions across multi-year planning 
horizon 

Five-year planning horizon which allows for viewing 
and testing of various assumptions, including 
interrelationships between budget items. Growth 
percentages are calculated across the planning 
horizon 

4 

Audited annual financial statements used to 

determine trends 

Historic information included and available for 
trend analysis, compiled from audited annual 
financial statements 

5 

Alignment with strategic initiatives 

Inclusion of the Capital Planning System prioritised 
projects and integrating with the operating budget. 
Further coordination and consultation supported 
by results 


25.2 City Improvement District Implementation 

A City Improvement District (CID) is a geographic area in which a majority of property or business 
owners have come together and agreed to provide an extra level of public service through an 
additional tax or fee on the properties located within that identified space. CIDs are community driven 
initiatives where the private sector takes the lead in supporting the municipality in the revitalization 
or maintenance of certain demarcated areas. The additional service that may be provided by the 
public sector could include street cleaning, security services, engagements with informal traders, 
business attraction and place marketing amongst others. The establishment of CIDs are acknowledged 
as one of the key mechanisms to revitalize specific economic nodes within cities. 

The CID concept originated in 2009 as the result of a report titled "Report Back on Key Findings and 
Concrete Recommendations on the CID Study for the City of Tshwane". The contents of this report 
aligned to the Gauteng City Improvement Districts Act, 1997, which was enacted by the province to 
facilitate the establishment of CIDs. During 2014 Council approved the development of a Special 
Ratings Area (SRA) policy in a report titled "Report on the Public Participation Process Conducted on 
the Draft Special Ratings Areas Policy". Even though the development of the report was approved, the 
policy was never empowered with a by-law and omitted key institutional arrangements. 


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City of Tshwane 
2020/21 Built Environment Performance Plan 


Overall the CID and SRA space has not been established to speak to the city's needs or administrative 
functions, which essentially has created legislative uncertainty. Based on this, the city has identified 
the need to introduce a new by-law which stabilizes functions and governance pertaining to CIDs. 

During the preparation of the BEPP document, the by-law report concluded with the public 
participation process, and as such is still in the process of being drafted for submission to Council for 
approval. 



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