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| Mr. Micheal K.Obeng ( Metro Director of Finance) |
By: Micheal K.Obeng ( Metro Director of Finance)
Sections 97 and 98 of the Local Government Act (Act 462) mandate Metropolitan, Municipal and District Assemblies (MMDAs) to mobilise resources for development.
The Fee Fixing Resolution, which was passed by the General Assembly of CCMA gazette by the government in a Local Government Bulletin dated 5th February 2010, also gave credence to the collection of such taxes. The various sources from which local revenue is mobilised for development include the following:
1. Rates
2. Licenses
3. Fees & Fines
4. Lands
RATES
Revenue from basic and property rates all fall under this category. Basic rate, because of its higher cost of collection, which rather exceeds the benefits, has, for some time now, been relegated to the background. Property rate, otherwise known as property tax, is that charge on all properties owned by individual property owners, businesses, both private and governmental. A percentage of each cedi (rates imposed) is charged on the rateable value of all properties. All MMDAs are expected to engage the Land Valuation Board to value all properties in their various jurisdictions once every five years to reflect their current rateable values.
LICENCES
Businesses need to obtain business operating licences or permits before they can be established. To obtain a licence, an application is written to the Chief Executive (MCE) for the necessary permission. The type of business to be engaged in will be assessed and the appropriate fees paid to the Assembly. If these steps are not followed for the necessary permits to be obtained from the Cape Coast Metropolitan Assembly (CCMA), the Assembly on that business imposes a penalty. Examples of licences are store licences and permits to erect a mast by telecommunication companies. Building permits are also to be obtained before construction of a structure begins. This is to avoid demolition of the structure by CCMA in case the structure might have been built in either waterways or sites already earmarked for other purposes by the Metropolitan Authorities.
FEES & FINES
Fees are paid by market women at the market on their wares by way of daily tolls. Fees are also imposed on cars that patronise the various lorry packs in the metropolis for the use of these parks. Fines are also imposed on businesses and individuals when the necessary rate, licences and fees are not obtained or paid. Fines can be imposed by the courts either when a rate defaulter is prosecuted for non-payment of necessary fees, or collected instantly by CCMA from rate defaulters or persons whose actions or inactions go contrary to its by-laws. A car parked at a “No Parking” spot for instance, incurs a penalty from CCMA. Women who obstruct the flow of traffic by displaying their wares also attract a fine that could be collected by CCMA instantly, or by the courts when prosecuted.
LANDS
Revenue accrued from the operation of timber merchants in forest areas falls under this category of revenue. Unfortunately, Cape Coast Ghana Museums and Monuments Board by the strategic location of Cape Coast
OUTSOURCING OF REVENUE MOBILISATION IN CAPE COAST
The CCMA realising the enormous and herculean task imposed on her by people of the Metropolis to develop the city as a model of hope for the African Continent, outsourced the mobilization of local revenue to RevNet Company Limited, a company that specialises in Electronic Banking System of Revenue Cycle Management (EBS-RCM).
There are varied reasons for CCMA taking that bold decision. Some of these reasons are as follows:
a) To depart from the primitive way of revenue collection and to introduce a more scientific way by the use of computers.
b) To develop a more reliable data base on properties and businesses in the Metropolis.
c) To increase local revenue for local development
d) To provide employment.
e) As capacity- building tool. Etc.
The best contractual agreement was signed between CCMA and RevNet effective 1st January, 2010 whereby the latter is entitled to a percentage of excess revenue after attaining the benchmark figure agreed upon by both parties.
OPERATIONS OF REVNET
RevNet operates strictly under the following guidelines:
1. Enumeration
2. Assessment/Generation of bills
3. Bills presentation
4. Collections
5. Reconciliation
6. Enforcement
Enumeration
RevNet started by training CCMA revenue staff on the collection of data on all businesses and properties in the Metropolis. Cape Coast
ASSESSMENT
Data collected during enumeration are processed for the generation of the appropriate bills. Business and properties are rightly assessed based on the type of data collected on them during enumeration. Assessment comes in the form of bills with unique identification numbers on each property, person or business assessed during enumeration.
Bills Presentation
Bills generated during assessment are presented or distributed to property owners and businesses for their attention and payment. Banks and bank account numbers operated by CCMA are listed behind all bills during distribution. A rate-payer chooses among these banks, the nearest to him/her for the purpose of payment. All types of revenue are coded behind these bills to facilitate accounting for revenue collected. Three months (90 days) grace period is allowed for all rate payers billed to either pay the appropriate bill or arrange for a scheduled payment.
Collection
Collection is the next activity embarked upon after enumeration, assessment and distribution of bills have been completed. An agreement has been reached with the various banks to accept payments of all manner of bills generated and distributed to rate-payers. The system makes provision for different portions of the bill submitted by rate-payers to be maintained by the bank and also for CCMA while the payer retains a portion for reconciliation purposes.
Reconciliation
Bank statements are obtained in duplicate at the end of the month from all banks hooked on to the programme for the purpose of the preparation of bank reconciliation statements. While CCMA keeps one copy, RevNet is given the other copy. RevNet and CCMA use these copies to reconcile with each other, lodgement into each bank account during the month. With this arrangement, total revenue collected during the month is ascertained. Compared with the benchmark figure, any excess revenue attracts commission which is applied for by RevNet to CCMA.
Enforcement
This is the last resort left for CCMA after all persuasions through various forms of education have failed to enforce payments. CCMA obtains writ of summons from the courts through her prosecutor and serves them on all rate defaulters for non-payment of bills submitted to them.
Benefits
Benefits derived from CCMA's association with RevNet are numerous. A very reliable database has been developed for the purpose of proper planning and the preparation of a realistic budget for the development of Cape Coast
As a capacity- building tool, revenue officers have been trained in basic knowledge in computing. The officers now use computers to update data on properties and businesses. This has indeed enhanced their efficiency. Things that were done manually are now done with computers.
Employment Creation
RevNet has employed more than ten graduates and a number of H.N.D. holders since the inception of the programme. School leavers who would otherwise have roamed the streets of Cape Coast
Development Projects
Projects that have been undertaken from locally generated revenue up to the end of July 2010, could be enumerated below:
1.Police Station
A new police station has been provided for the people of Kotokuraba. By the provision of this police station, the crime wave in and around Kotokuraba market and its environs is going to decrease tremendously. Market women will feel more secure to do business in and around the area. This will also go a long way to decreasing the rate of poverty in Kotokuraba and its surrounding areas. To further decrease the crime wave in the Metropolis, the police is now given a weekly ration of fuel to carry out night patrols, warding off criminals and increasing the safety of the people of Cape Coast
2.Engagement of Metro Guards
Fifty new Metro Guards have been employed by CCMA to bolster the number already on the payroll. These trainees have been undergoing training for the past one month in various areas of crime combat. They have been living on daily allowances for the period. After they have passed out, two sets of uniforms each will be provided them for the purpose of identification from other security agencies in the Metropolis. For ceremonial purposes, one additional uniform will each be provided the guards before their deployment into the various models of the programme. Below is the list of the various models into which the Metro Guards will be redeployed.
a. Tourism Model: Guards under this model will assist tourists with the provision of security and guidance in all the tourist attractions in the Metropolis.
b. Rapid Response Model: This model seeks to work in collaboration with the National Disaster Management Organisation NADMO and the Ghana National Fire Service. This group will be expected to respond swiftly to all emergency calls such as fire and flood among others.
c. Works Model: A greater portion of these workers will be attached to the works department of the Assembly to assist in enforcing the bye laws on development of structures in the Metropolis.
d. Traffic Control Model: This model deals with the enforcement of all traffic regulations in Cape Coast. Workers under this model will ensure the free flow of traffic without any obstruction.
e. Beautification Model: Those under this model will work hand in hand with the Department of Parks and Gardens for the maintenance of the grounds in Cape Coast. To attract more tourists into Cape Coast
Land Banks
So many areas of land have been acquired at Mpeasem and its surrounding villages as land banks for investment purposes. Investors who express their desire to invest in Cape Coast
Accommodation
Both residential and official accommodation has been acquired by CCMA for the establishment of the two Sub-Metros for Cape Coast North and South, officers who have been earmarked for transfer to man these new offices have been comfortably accommodated. This is a morale booster for these officers. The Metropolitan Magistrate and the Metropolitan Finance Officer have all been provided with decent accommodation from the internally- generated revenue.
All these arrangements, apart from offering employment to the youth of Cape Coast
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