PORTO ALEGRE BRAZIL

The StateThe State

The CityThe City

PopulationPopulation

Rio Grande do Sul State 9.623.201Metropolitan Region 3.235.925Porto Alegre 1.286.251Women 684.501 Men 601.750Average Annual Growth in Porto Alegre 0,36Demographic Density (inhab./km.²) 2.737Average Annual Growth in the State 1,04

Souce: IBGE/1996

The Economy Of The Economy Of CityCity

EconomyEconomy

Gross National Product (GNP) 1997 - em R$

State 68 bilhõesRegional 27 bilhõesCity 9,9bilhões

Source: Fundação de Economia e Estatística

PIB of Porto Alegre

35%

10%

55%

Agriculture Industries Services

Revenue Collection in BrazilRevenue Collection in Brazil

65,66%

5,53%

28,81%

Uni‹ o

Estados

Munic’pios

Revenue by Level of Government Revenue by Level of Government

56,31%

16,75%

26,94%

Uni‹ o

Estados

Munic’pios

CITY HALL OF PORTO ALEGRE

STRUCTUREAND

DUTIES

GENERAL STRUCTURE

SECRETARIESEx. Health, Education

PUBLICCOMPANIES

Ex. Public Transport

DEPARTMENTSEx. Water provision

FOUNDATIONSEx. Social Assitance

MAYOR

THE CITY HALL

26 thousand public workers active: 21,830 retired: 5, 326

Population of 1,288.881 inhabitants

Area of 50,000 hectares.

City FinancingCity Financing

I P T U(Tax on Urban Properties)

Unpaid:before the OP: 20 %

today: 12 %

Participation on Collecting:before the OP: 6 % today: 13 %

Impact of PB on Own Source RevenueImpact of PB on Own Source Revenue

in constant 1998 R$ millions in constant 1998 R$ millions YEAR TOTAL

1993 133,1

1994 154,7

1995 192,2

1996 209,2

1997 226,3

1998 236,7

Participative Budget

Geografic and Thematic Base Dynamics of Process Financial Results

PUBLIC BUDGET

Participative Participative BudgetBudget

GEOGRAPHIC GEOGRAPHIC BASEBASEThe city is divided in 16 Regions

THEMATIC THEMATIC BASEBASE Thematic Meetings(5)

Public Transport and TrafficHealth Care and Social Assistance Education, Culture and Leisure Economic Development and Taxation City Organization and Urban Development

Participative Participative Budget(PB)Budget(PB)

DYNAMICS OF PROCESSDYNAMICS OF PROCESS

1st Meeting1st Meeting

Investment FeedbackInvestment Plan Presentation Criterion and Method For PB Community Representantive Election

Participative BudgetParticipative Budget

Dynamic and Working Process Intermediate MeetingINTERMEDIATE MEETINGSINTERMEDIATE MEETINGS

Governmental Organs provide technical information discussion and selection of thematic priorities and regional works Priorities of services, sectoral policies and works Election of community representatives

2nd MEETING2nd MEETING

Election of the Budget Council Presentation of the receipt and expense estimates The 16 regions and 5 thematic meeting hand in the priorities and works

PARTICIPATIVE BUDGETPARTICIPATIVE BUDGET

DYNAMICS AND WORKING PROCESSDYNAMICS AND WORKING PROCESS

PROPOSAL ELABORATIONPROPOSAL ELABORATION

Inauguration of new Participative Budget Council Course on Public Budget with the COP Seminar on Public Budget with the community representatives Reconciliation of regional and thematic priorities according to budget constraints Discussion and Elaboration of Budget Proposal Hand over of Budget Proposal to Municipal Council Discussion and elaboration of Investment Plan

PARTICIPATIVE BUDGET ARRANGEMENT

2 Councils per city region = 32 titular members

2 Understudy Councils per city region = 32

understudy members

2 Thematic Plenary Councils = 10 titular members

2 Understudy Councils /Thematic Plenary = 10

understudy members

1 Community representative from Porto Alegre’s

Inhabitantes Association

1 Representative from the Union of Municipal Public

Workers

2 Members from the government with no-voting

rights

REGIONS AND THEMES DEFINE PRIORITIES

First priority Grade 4

Second priority Grade 3

Third priority Grade 2

Fourth priority Grade 1

SERVICE NEEDS AND INFRA-STRUCTURE

Relative value 3Up to 25%.................................................grade 1From 26% to 50%...............................….grade 2De 51% a 75%..........................................grade 3De 76% on...........................................….grade 4

POPULATION OF EACH REGION

Relative value 2

Up to 49.999....………......................…grade 1

From 50.000 to 99.999…….……......…grade 2

From 100.000 to 199.000...…………...grade 3

Over 200.000 ……............……….....…grade 4

THEMATIC PRIORITY OF REGION

Relative value 3

From the fourth priority on.........................nota 1

Terceira prioridad........................................nota 2

Segunda prioridad........................................nota 3

Primera prioridad.........................................nota 4

InvestmentsInvestments

Community Participation Community Participation and and

Redistributive Public Redistributive Public ExpenseExpenseParticipatory Budget: Participatory Budget:

changes in investment changes in investment priorities since 1989priorities since 1989

Water System: from 83% to 98% coverage Sewer System: from 46% to 85% coverage Paving : from 4 to 20-30 Km/year Doubled number of school enrollments Reconstruction of 80 health care units

Investment Plan for 1999Investment Plan for 1999

Settled Priorities by the PB

Sanitation Street Paving Popular Housing Education Health

Principal Infrastructure WorksPrincipal Infrastructure Works

Programa de Desenvolvimento Municipal – III Perimetral

Projeto Corredor Norte e Nordeste

Ampliação de Avenidas Estruturais

Projetos Saneamento e Habitação

Multi-year investments 1999-2003Multi-year investments 1999-2003in R$ 1,000in R$ 1,000

PROJECTS INVESTIMENTS LOANS OWN RESOURCES

PDM - BID 275.400,00 137.700,00 137.700,00

PDM - BNDES 39.219,81 39.219,81 0,00

Corredor Norte e Nordeste - BNDES 4.229,90 15.673,38 4.229,99

Arroio Dilœvio - FONPLATA 2.957,40 2.057,40 900,00

Pronto Socorro - FONPLATA 5.940,00 4.680,00 1.260,00

Habita?‹ o - CEF 41.043,54 28.844,53 12.199,01

Saneamento - CEF 41.536,42 34.418,66 7.117,76

Pr—-Gua’ba - BID 44.339,40 38.001,60 6.337,80

TOTAL 454.666,48 300.595,39 169.744,56

1999 Budget1999 Budget

Total Budget : R$ 1,1 billon

Investments: R$ 174,0 millons

Source: City Hall of Porto Alegre - 1999

The Quality Of LifeThe Quality Of Life

The Quality Of LifeThe Quality Of Life Porto Alegre Brazil

Life Expectancy 70,3 yrs. 61,8 yrs.

Education 97% 84%

Garbage Collection 100% 64,5%

Sewer Coverage 83% 42%

Treated Sewer 44% n/d

Water Supply 99% 73,4%

Electric Power 98% 87,8%

Childhood Death p/ 1,000 inhab. 15 37,5

Source: IBGE, SSMA/RS, PMPA and CEEE

Budgeting Balance 1998Budgeting Balance 1998

Budget Surplus: R$ 24 millionBudget Surplus: R$ 24 million

Source: City Hall of Porto Alegre - 1999

Human Development Rating:Human Development Rating:The Metropolis with the Best The Metropolis with the Best

Quality Of Life in BrazilQuality Of Life in Brazil

7º - Porto Alegre / RS

18º - Curitiba / PR

47º - Rio de Janeiro / RJ