1 | P a g e F I N A L I D P 2 0 1 5 / 1 6
LEKWA LOCAL MUNICIPALITY IDP FOR 2015/2016
5TH IDP EDITION
HP
2 | P a g e F I N A L I D P 2 0 1 5 / 1 6
A. EXECUTIVE SUMMARY BY EXECUTIVE MAYOR
Local government is and will remain the implementing agent of government’s transformation and delivery programs. Two parallel and mutually reinforcing roles of local government are sustainable upliftment and empowerment of local communities and the sustainable creation of an environment for economic development and opportunity. The primary vehicle for carrying out these roles is service delivery. Local government should therefore create the capacity to be able to deliver the required services.
However, in any revolutionary programme that seeks to redress many challenges that were created by the past skewed system, we will continuously encounter stumbling blocks that may impede progress for the complete service delivery programme for the people.
Communication between the leadership and its electorate should be regularised and enhanced in an endeavour to correct perceptions and close any vacuum that could be created as a result of muteness.
It should become a habit and hobby to constantly communicate with the people and highlight all challenges that we may have encountered in the execution of our mandate, and further explain on our achievements as government at whatever sphere of government. No vacuum should be allowed in the course of duty, be it the political representatives or administration. We should never be shy to explain.
By us being here, we confirm our resolved to service delivery and furthermore, subscribe to the notion that “Success is realised when preparation and opportunity meet”.
We must always be guided by our vision – “to be the leading, people cantered municipality, excelling in economic growth, development and governance”
We are here to prepare and plan and we hope that opportunities will present themselves so that we can see a municipality that is performing and ultimately successful in all its required functional areas. We need to push good values of the organisation to our employees. We need to introduce change that is founded on good principles and culture. We have to excel in what we do.
Unity in action must drive us to be a winning team. Let us all subscribe to all call that is derived from an old adage: ‘united we stand, divided we fall’ and we commit that this is what will drive this strategy.
In order to achieve concomitant results, we should collectively contribute towards our strategic development path. It is in this spirit that we are steadfast and in support of our President’s 2009 ‘State of the Nation’ address and broadly the government call that “working together we can do more”.
Developmental Local Government is Local Government committed to working with citizens and groups within the community.
The White Paper – which is often referred to as the ‘mini- constitution’ for the local sphere of government – defines Developmental Local Government as local government committed to working with citizens and groups within the community to find long-term or sustainable ways to meet the social, economic and material needs and improve the quality of the lives of the community.
3 | P a g e F I N A L I D P 2 0 1 5 / 1 6
To realize this vision, municipalities are encouraged to build local democracy by developing strategies and mechanisms to continuously engage with citizens, business and community groups. The White Paper requires active participation of citizens at four levels, as:
• Voters • Participants in the policy process • Consumers and service-users • Partners in resource mobilization.
The White Paper further states that municipalities must represent the interests of the people in the community and work with all sections of the community to build a shared vision and to set goals for development. This strategic document must provide an expression to these requirements.
We all know that there are a lot of challenges within our Municipality.
We can sum the up them as follows:-
• Audit opinion (Unqualified Audit Opinion with emphasis of matter INSTEAD of CLEAN AUDIT;
• Provision of services (water, electricity and of late waste removal); • Limited / Non-compliance to legislation; • Lack of policies (IT Policies); • Poor information management; • Capacity gaps (BTO); • Poor revenue collection; • Predetermined Objectives • Ever increasing irregular expenditure, unauthorised and wasteful expenditure • Lack of risk management unit • Non-compliance with SCM Policy and Regulations
Challenges identified above should be confronted with velocity of a bull. Failure to do so would create pitfalls that would be insurmountable where in some instances public representatives would be treated like lepers within the community they ought to serve.
Whilst we are confronted by some of the few mentioned challenges, we have been able to consider the following:-
• Mid-year budget and performance report – Section 72 of the MFMA; • Annual report; • Adjustment budget;
The above documents are set that provides us with the opportunity to account to our communities. The choices and decisions we make are put into test and the public is now aware of our actions. By the end of March 2015, we will be aware of what the public thinks before we adopt the annual report.
Consequently, the IDP/Budget process plan we adopted in August presents more of what is required of us. As we gear ourselves to these processes, we need this strategy to create better platform for us to be able to shape the future of Lekwa.
“Strategy provides direction.
4 | P a g e F I N A L I D P 2 0 1 5 / 1 6
• It is your framework of decision-making and action, the foundation and long-term plan for the people in the business;
• It is a rally point, pro-active and activating; • It initiates change and improvement while providing fundamental principles; • It enables the business to organise its resources and optimise human capital. • It leads to powerful business performance. • It creates confidence, since the organisations knows where it wants to go and what it
wants to achieve, and has a solid plan and support systems in place to do so.”
As jobs are lost, municipal revenue from rates and taxes shrink, local economies decline, indigent registers expand—increasing demand for free basic services. Against this backdrop, LLM must remain financially viable, and if the national economy is to be sustained on a positive growth path, local economies will have to be assisted to continue to grow, even if at very low rates.
As we a gathered here, achieving positive results is preceded by developing a sound plan which takes into account all the merits and demerits of pursuing the set objectives. The outcome of this strategic plan must highlight new imperatives and challenges that confront our communities.
No doubt, the role of community participation into the affairs of the municipality has a positive impact on good governance. We are geared up to take the challenges before us through deliberate means of redressing the imbalances of the past and turn the vicious poverty circle which confronts our communities. Our resolve on creating enabling regulatory framework has gained impetus and we are certain that before our term of office, we shall ensure that all our policies and by-laws strengthen our capacity to manage this municipality.
Strategy about understands the linkages between issues and identifying the key drivers and points of leverage. As Councillors, we are defined as Architects since we have to set and develop the vision for our municipality. Managers, as Builders, have to ensure that the vision set is realised.
In that respect, when our term ends, we must not be shy and we must ensure that the strategic CHOICES we make would yield these results:-
• We must proudly report that we worked hard to push back the frontiers of poverty; • To rebuild a tattered economy; • To return pride to our people; • To build confidence; • To care for the poor and most vulnerable; • We must sought to build rather than postulate; • We must choose decision over vacillation; • We choose inclusion over exclusion; • We choose stability over chaos; • We choose predictability over irrationality; • We embrace the present, mindful of the past, and boldly face our future; • We nurture our youth while caring for our elders; • We respect the community and the individual; • We cherish our diversity and our common humanity; • We choose respect over disregard; • We choose humility over arrogance; • We choose partnership over isolation; • We choose learning over assuming; • We choose frankness over glibness.
5 | P a g e F I N A L I D P 2 0 1 5 / 1 6
I hope MM and his team will deliberate on the following topics:
• “BACK TO BASICS” and do simple things right. • Integrate NDP, SONA, and SOPA etc. • 6 KPAs of Local Government • Municipal Governance, Communication, and Public Participation • Fighting fraud and corruption
Finally, our mandate that we derive from the constitution of the Republic and other laws that govern local government have made us to realise that we exist for one reason and that is, to serve our communities and change their lives for the better. We are therefore servant leaders and may our stewardship and sustainability embrace the noble objectives of developmental local government.
This outcome of this strategic document will guide us in our quest for a better life for all. With this tool, we will remain focused on ensuring that we deliver on our mandate. Key to this strategy would be development of the program of action which will guide implementation by various programs and ensures that their programs are synergised with the municipal broad strategies. Adequate attention must also be put on ensuring that a sufficiently resourced structure has to be developed for the implementation of the plan. In this regard, the major tasks for the departments will be to grow particularly in areas of specialization and management.
I sincerely believe that the implementation of our well diagnosed and synthesised strategic plan will make our municipality to grow from strength to strength. It must be embedded on these deliberate efforts that our municipality must embrace this strategy. The results must be realized in the current term of office in order to create a better platform for the others who will come after us.
CLLR CM MORAJANE EXECUTIVE MAYOR
6 | P a g e F I N A L I D P 2 0 1 5 / 1 6
B. MUNICIPAL OVERVIEW BY MUNICIPAL MANAGER
As an Accounting Officer, there is a need to share with the Municipal leadership, Individuals, Unions, CBO’s, NPO’s, Business, Farmers Associations, Stockvels, Churches, SMME’s, Co-operatives and the greater communities of Lekwa Local Municipality, a perspective as an overview of the Municipality environment. This overview is an attempt to determine and guide discussions, based on the same wavelengths. To also give insight into the Accounting Officers views on the current, the past and the forecast forward. Broadly raise challenges that need attention and should be addressed in this IDP document going forward.
Our municipality strives, within its financial and administrative capacity, to give effect to the objects of local government as defined in Section 152(1) of the Constitution of South Africa.
Lekwa LM has unique challenges which include the prevalence of poverty, a natural environment with unique resource base; ensuring equitable access to basic services for all our inhabitants, jobs and sustainable livelihoods; creating integrated human settlements with decent housing for all, Low levels of indigent registration, Billing system not completely revamped, Collection rate fluctuation, Increasing debts, Call centre inconsistencies ,Aged fleet, Load shedding / Eskom, Properties Encroachments, Grazing land availability and dealing with the rise in crime statistics.
However, Lekwa is blessed in having a community characterised by its resilience under difficult circumstances. Moreover our municipality also boast with achievements as follows;
Council and its committees continue to sit, and supported as expected.
Political leadership stability.
Standing Rules and orders adopted.
Improved audit outcomes.
Water / sanitation and electricity prioritised for 2014 / 2015
Electricity and revenue loss control being attended to
Water treatment works refurbished
Waste water treatment works refurbished, and extension started
Water conservation and demand management underway
Recruitment of staff is in progress.
Continuous training of Councillors and staff to improve skills.
Code of conduct implemented.
Skills transfer taking place at finance
More than R40 million special provincial grants received
Newsletter re-introduced
Some progress made in building relations with big business
Cooperatives assisted
7 | P a g e F I N A L I D P 2 0 1 5 / 1 6
The solution to the Lekwa’s problems will be addressed through a robust economy creating employment opportunities and transforming the economy to create equal opportunities for all. We need to create a sense of belonging and a home for all through this plan. It will require all residents to work together as collective and take ownership of our neighborhoods.
This plan strongly addresses the fundamental challenges regarding our human and social development and the ability to support a robust economy. Given our focus on people-cantered development and the reality of having to do so with limited resources, our municipal vision is to be the leading people centered municipality excelling in economic growth, development and good governance.
This IDP looks forward to 2015/16 financial year, but acknowledges the problems and the challenges of our joint past, present, immediate future, and the years and months and weeks and days until the next elected term of council. Lekwa is the place we all call home. We all of us live here, work here, learn here, play here and must prosper here.
From time to time we will not see things the same, we will fight and reconcile, laugh and cry, walk and run. All the contradictions must make us stronger and determined to succeed. We therefore call upon our government, and this council, and its directors and managers and support staff, to focus on delivering the services that support an environment within which the people of Lekwa can all live, and work, and prosper together.
…………………………………………………………………………………………………………………………………………….
MR. LB TSHABALALA MUNICIPAL MANAGER
8 | P a g e F I N A L I D P 2 0 1 5 / 1 6
TABLE OF CONTENT
A. EXECUTIVE SUMMARY BY THE EXECUTIVE MAYOR
B. MUNICIPAL OVERVIEW BY MUNICIPAL MANAGER
C. ACRONYMS
1. CHAPTER 1. INTRODUCTION AND BACKGROUND
1.1.PHYSICAL STRUCTURE OF THE IDP DOCUMENT ...................................................................................................................................... 15
1.2.LOCALIZED MANIFESTO VERSUS ACHIEVEMENTS OVER THE LAST FOUR YEARS ................................................................. 17
1.3.LEGISLATIVE CONTEXT .......................................................................................................................................................................................... 21
1.4.LEGISLATIVE IMPERATIVES AFFECTING PLANNING .............................................................................................................................. 23
1.4.1.OUTCOME-BASED APPROACH TO DELIVERY .......................................................................................................................................... 23
1.4.2.MULTIDIMENSIONAL STRATEGIC FRAMEWORK .................................................................................................................................. 24
1.5.INTERGOVERNMENTAL PLANNING ................................................................................................................................................................. 31
1.6.IDP PUBLIC PARTICIPATION PROCESS ........................................................................................................................................................... 31
1.7.IDP REVIEW PROCESS .............................................................................................................................................................................................. 32
1.8.IDP PROCESS PLAN FOR 2015/2016 ................................................................................................................................................................ 36
2. CHAPTER 2: DEVELOPMENT STRATEGIES
2.1.INTRODUCTION........................................................................................................................................................................................................... 37
2.2.LEKWA LOCAL MUNICIPALITY’S “VISION” .................................................................................................................................................... 37
2.3.LEKWA LOCAL MUNICIPALITY’S “MISSION .................................................................................................................................................. 37
2.4.STRATEGIC FOCUS AREA ........................................................................................................................................................................................ 38
2.5.NINE (9) STRATEGIC FOCUS AREAS ................................................................................................................................................................. 38
2.5.1.STRATEGIC FOCUS AREA 1: EQUITABLE PROVISION OF SERVICES SUCH AS WATER, SANITATION, ETC. ............ 39
2.5.2.STRATEGIC FOCUS AREA 2: CREATION OF AN INTEGRATED AND SUSTAINABLE HUMAN SETTLEMENT ............. 39
2.5.3.STRATEGIC FOCUS AREA 3: CREATION OF A LINKED ECOLOGICAL OPEN SPACE ............................................................... 39
2.5.4.STRATEGIC FOCUS AREA 4: DELINEATION OF AN URBAN EDGE ................................................................................................ 39
2.5.5.STRATEGIC FOCUS AREA 5: ESTABLISHMENT OF AN EFFICIENT ACCESS AND INTEGRATED MOBILITY .............. 39
2.5.6.STRATEGIC FOCUS AREA 6: CREATION OF A FUNCTIONAL HIERACHY .................................................................................... 39
2.5.7.STRATEGIC FOCUS AREA 7: FINANCIAL AND ENVIRONMENTAL SUSTAINABILITY ........................................................... 40
2.5.8.STRATEGIC FOCUS AREA 8: EFFECTIVE LEADERSHIP AND GOOD GOVERNANCE ............................................................... 40
2.5.9.STRATEGIC FOCUS AREA 9: BOOSTING THE LOCAL ECONOMY AND JOB CREATION ......................................................... 40
3. CHAPTER 3: SITUATIONAL ANALYSIS
3.1.MUNICIPAL DEMOGRAPHICAL OVERVIEW .................................................................................................................................................. 43
3.2.SOCIO-ECONOMIC ANALYSIS ............................................................................................................................................................................... 44
3.2.1.DEMOGRAPHIC INDICATORS ........................................................................................................................................................................... 44
3.2.2.YOUTH INDICATORS ............................................................................................................................................................................................. 45
9 | P a g e F I N A L I D P 2 0 1 5 / 1 6
3.2.3.LABOUR INDICATORS .......................................................................................................................................................................................... 45
3.2.4.LABOUR INDICATORS .......................................................................................................................................................................................... 47
3.2.5.EDUCATION INDICATORS .................................................................................................................................................................................. 48
3.2.6.YOUTH INDICATORS ............................................................................................................................................................................................. 49
3.2.7.EDUCATION INDICATORS .................................................................................................................................................................................. 50
3.2.8.HEALTH INDICATORS .......................................................................................................................................................................................... 51
3.2.9.EDUCATION INDICATORS .................................................................................................................................................................................. 52
3.2.10.HOUSING 2011 ...................................................................................................................................................................................................... 53
3.2.11.SANITATION 2011 ............................................................................................................................................................................................... 54
3.2.12.PIPED WATER-2011 ........................................................................................................................................................................................... 55
3.2.13.BLUE DROP PERFORMANCE .......................................................................................................................................................................... 56
3.2.14.GREEN DROP PERFORMANCE (RISK PROFILE AND LOG BY MUNICIPAL AREA) ............................................................... 56
3.2.14.BASIC SERVICE DELIVERY Household Services Index by Local municipal area, 2001 - 2011 ....................................... 57
3.2.15.HUMAN DEVELOPMENT INDEX ................................................................................................................................................................... 58
3.2.16.AVERAGE HOUSEHOLD INCOME.................................................................................................................................................................. 58
3.2.17.HOUSEHOLD GOODS - 2011 ............................................................................................................................................................................ 59
3.2.18.HOUSEHOLD GOODS INDEX Household Goods Index by Local municipal area, 2001 - 2011 ...................................... 60
3.2.19.INEQUALITY AND POVERTY .......................................................................................................................................................................... 61
3.2.20.INCOME INEQUALITY ........................................................................................................................................................................................ 62
3.2.21.ECONOMIC INDICATORS .................................................................................................................................................................................. 63
3.2.22.NDUSTRY CONTRIBUTION & GROWTH .................................................................................................................................................... 66
3.2.23.TOURISM INDICATORS ..................................................................................................................................................................................... 67
3.2.24.NATIONAL TREASURY ALLOCATION, MPG EXPENDITURE & SASSA GRANTS ..................................................................... 68
3.2.25.CRITICAL QUESTIONS – RESPONSE FROM MUNICIPALITY ........................................................................................................... 69
3.2.26.CHALLENGES & RECOMMENDATIONS ..................................................................................................................................................... 72
3.2.WARD BASED ASSESSMENT IN TERMS COMMUNITY ISSUES ............................................................................................................. 73
4. CHAPTER 4: PERFORMANCE MANAGEMENT SYSTEM
4.1.INTRODUCTION........................................................................................................................................................................................................... 97
4.2.POLICY AND LEGISLATIVE FRAMEWORK ..................................................................................................................................................... 97
4.2.1.WHITE PAPER ON LOCAL GOVERNMENT (1988) .................................................................................................................................. 97
4.2.2.BATHO PELE (1998).............................................................................................................................................................................................. 98
4.2.3.THE MUNICIPAL SYSTEMS ACT (2000) ....................................................................................................................................................... 98
4.2.4.MUNICIPAL PLANNING AND PERFORMANCE MANAGEMENT REGULATIONS (2001)....................................................... 98
4.3.PRINCIPLES GOVERNING THE PERFORMANCE MANAGEMENT SYSTEM ..................................................................................... 98
4.4.LEKWA’S PERFORMANCE MANAGEMENT SYSTEM ................................................................................................................................. 99
4.5.STAKEHOLDERS AND THE ROLE THEY PLAY IN PERFORMANCE MANAGEMENT SYSTEM ............................................ 101
4.6.PUBLIC PARTICIPATION ...................................................................................................................................................................................... 101
4.7.AUDITING OF PERFORMANCE .......................................................................................................................................................................... 101
4.8.KEY PERFORMANCE INDICATORS (KPI’S) ................................................................................................................................................. 103
4.9.THE GENERAL KEY PERFORMANCE INDICATORS ................................................................................................................................. 104
10 | P a g e F I N A L I D P 2 0 1 5 / 1 6
4.10.KEY PERFORMANCE AREAS (KPA’S) .......................................................................................................................................................... 105
4.11.KEY PERFORMANCE AREAS (KPAs), STRATEGIC OBJECTIVES (SOs), KEY PERFORMANCE INDICATORS (KPIS) AND STRATEGIC FOCUS AREAS (SFAS) AIMED AT ADDRESSING PRIORITY ISSUES ................................................................... 108
5. CHAPTER 5: SPATIALE RATIONALE
5.1.LOCATION ANALYSIS............................................................................................................................................................................................. 150
5.2.SPATIAL PARTTEN AND DISTRIBUTION ..................................................................................................................................................... 150
5.3.INFORMAL SETTLEMENTS ................................................................................................................................................................................. 153
5.3.1.FUNCTIONAL AREA 1 ........................................................................................................................................................................................ 153
5.3.2.FUNCTIONAL AREA 2 ........................................................................................................................................................................................ 153
5.3.3.FUNCTIONAL AREA 3 ........................................................................................................................................................................................ 153
5.3.4.FUNCTIONAL AREA 4 ........................................................................................................................................................................................ 153
5.3.5.FUNCTIONAL AREA 5 ........................................................................................................................................................................................ 153
5.3.6.FUNCTIONAL AREA 6 ........................................................................................................................................................................................ 154
5.3.7.FUNCTIONAL AREA 7 ........................................................................................................................................................................................ 154
5.3.8.FUNCTIONAL AREA 8 ........................................................................................................................................................................................ 154
5.4.HIERACHY OF NODES ............................................................................................................................................................................................ 154
5.4.1.FIRST ORDER ......................................................................................................................................................................................................... 154
5.4.2.THIRD ORDER NODES ....................................................................................................................................................................................... 154
5.4.3.FOURTH ORDER NODES ................................................................................................................................................................................... 155
5.5.LINKS ............................................................................................................................................................................................................................. 156
5.5.1.ROAD NETWORKS ............................................................................................................................................................................................... 156
5.5.2.RAILNETWORK ..................................................................................................................................................................................................... 158
5.5.3.PUBLIC TRANSPORT .......................................................................................................................................................................................... 159
5.5.4.NON-MOTORIZED TRANSPORT ................................................................................................................................................................... 160
5.5.5.POLICY MATTERS ........................................................................................................................................ 160
6. CHAPTER 6: FINANCIAL VIABILITY AND MANAGEMENT
6.1.INTRODUCTION........................................................................................................................................................................................................ 161
6.2.EXECUTIVE SUMMARY ......................................................................................................................................................................................... 161
6.3.2015/16 MEDIUM-TERM REVENUE & EXPENDITURE FRAMEWORK ......................................................................................... 163
6.4.OPERATING REVENUE FRAMEWORK ........................................................................................................................................................... 164
MBRR Table A1 - Budget Summary .................................................................................................................... 182
MBRR Table A2 - Budgeted Financial Performance (revenue and expenditure by standard classification) ... 184
MBRR Table A4 - Budgeted Financial Performance (revenue and expenditure) ............................................. 186
MBRR Table A5 - Budgeted Capital Expenditure by vote, standard classification and funding source .......... 189
MBRR Table A6 - Budgeted Financial Position .................................................................................................. 191
MBRR Table A7 - Budgeted Cash Flow Statement ............................................................................................ 193
MBRR Table A8 - Cash Backed Reserves/Accumulated Surplus Reconciliation ............................................... 194
MBRR Table A9 - Asset Management ................................................................................................................ 195
MBRR Table A10 - Basic Service Delivery Measurement .................................................................................. 196
6.5.OVERVIEW OF BUDGET-RELATED POLICIES ............................................................................................................................................ 197
11 | P a g e F I N A L I D P 2 0 1 5 / 1 6
6.6.OVERVIEW OF BUDGET FUNDING .................................................................................................................................................................. 199
7. CHAPTER 7: GOOD GOVERNANCE AND PUBLIC
PARTICIPATION
7.1.GENDER ........................................................................................................................................................................................................................ 202
7.2.OLDER PERSONS ...................................................................................................................................................................................................... 202
7.3.PERSONS WITH DISABILITIES .......................................................................................................................................................................... 202
7.4.YOUTH DEVELOPMENT ....................................................................................................................................................................................... 202
7.5.SUSTAINABLE LIVELIHOODS ............................................................................................................................................................................ 202
7.6.EARLY CHILDHOOD DEVELOPMENT ECD .................................................................................................................................................. 203
7.7.CHILD CARE AND PROTECTION....................................................................................................................................................................... 203
7.8.MORAL REGENERATION...................................................................................................................................................................................... 203
7.9.OVERSIGHT COMMITTEES .................................................................................................................................................................................. 205
7.10.MUNICIPAL PUBLIC ACCOUNTS COMMITTEES ..................................................................................................................................... 206
7.11.WARD COMMITTEES........................................................................................................................................................................................... 207
7.12.AUDIT COMMITTEES .......................................................................................................................................................................................... 208
7.13.INTERGOVERNMENTAL RELATIONS ......................................................................................................................................................... 208
7.14.COMMUNITY PARTICIPATION ....................................................................................................................................................................... 208
7.15.RISK MANAGEMENT COMMITTEE ............................................................................................................................................................... 209
7.15.1.RISK MANAGEMENT PLAN .......................................................................................................................................................................... 211
8. CHAPTER 8: DISASTER MANAGEMENT AND INTERGRATED
HUMAN SETTLEMENT CHAPTER
8.1.DISASTER MANAGEMENT PLAN ..................................................................................................................................................................... 217
8.1.1.PURPOSE OF DISASTER MANAGEMENT PLAN ..................................................................................................................................... 217
8.1.2.POSSIBLE TYPES OF DISASTERS, COMMUNITIES AT RISK AND ITS EFFECTS ..................................................................... 218
8.1.3.POSSIBLE PREVENTION AND MITIGATION MEASURES .................................................................................................................. 219
8.1.3.PREPAREDNESS AND INSTITUTIONAL CAPACITY ............................................................................................................................. 220
8.2.INTEGRATED HUMAN SETTLEMENT CHAPTER ..................................................................................................................................... 224
8.2.1PURPOSE OF HOUSING CHAPTER ................................................................................................................................................................ 225
8.2.2.EXPECTED OUTPUTS ......................................................................................................................................................................................... 225
9. CHAPTER 9: MUNICIPAL TRANSFORMATION AND
ORGANIZATIONAL DEVELOPMENT
9.1.MUNICIPAL COUNCIL ............................................................................................................................................................................................ 227
9.2.STRUCTURE OF TROIKA AND MAYORAL COMMITTEE ....................................................................................................................... 228
9.3.ORGANIZATIONAL DESIGN ................................................................................................................................................................................ 230
9.4.HUMAN RESOURCE DEVELOPMENT STRATEGY ..................................................................................................................................... 237
9.4.1.OVERVIEW .............................................................................................................................................................................................................. 237
9.4.2.ORGANIZATIONAL REVIEW ........................................................................................................................................................................... 238
9.4.3.EMPLOYMENT PRACTICE POLICY .............................................................................................................................................................. 239
12 | P a g e F I N A L I D P 2 0 1 5 / 1 6
9.4.4.TRAINING AND DEVELOPMENT POLICY ................................................................................................................................................. 239
9.4.5.STAFF RETENTION POLICY ............................................................................................................................................................................ 239
9.4.6.PERFORMANCE MANAGEMENT POLICY ................................................................................................................................................. 239
9.4.6.HEALTH AND SAFETY POLICY ...................................................................................................................................................................... 240
9.4.7.EMPLOYMENT EQUITY POLICY .................................................................................................................................................................... 240
9.4.7.HUMAN RESOURCE PLAN ............................................................................................................................................................................... 240
10. CHAPTER 10: MUNICIPAL PROGRAMMES AND PROJECTS
10.1.WATER AND SANITATIONS PROGRAMME .............................................................................................................................................. 245
10.3.SASOL SLP/LOCAL ECONOMIC DEVELOPMENT PROGRAMME..................................................................................................... 247
10.4.ELECTRICITY PROGRAMME ............................................................................................................................................................................ 248
10.5.EDUCATION PROGRAMME............................................................................................................................................................................... 248
10.6.ENVIRONMENTAL PROGRAMME ................................................................................................................................................................. 250
10.7.SECTOR PLANS PROGRAMME ........................................................................................................................................................................ 251
10.7.TRAFFIC & SAFETY PROGRAMME................................................................................................................................................................ 252
10.8.ANGLOAMERICAN PROGRAMMES ............................................................................................................................................................... 255
11. CHAPTER 11: MUNICIPAL SECTOR PLANS
11.1.LAND-USE MANAGEMENT SYSTEM ............................................................................................................................................................ 256
11.2.WATER SERVICE DEVELOPMENT PLAN ................................................................................................................................................... 256
11.3.INTEGRATED HUMAN SETTLEMENT CHAPTER PLAN .................................................................................................................... 256
11.4.LOCAL ECONOMIC DEVELOPMENT AND TOURISM STRATEGY .................................................................................................. 257
11.5.INFRASTRUCTURE INVESTMENT PLAN .................................................................................................................................................. 257
11.6.PERFORMANCE MANAGEMENT PLAN ...................................................................................................................................................... 258
11.7.SOCIAL NEEDS ASSESSMENT PLAN ........................................................................................................................................................... 258
11.8.OPEN SPACE PLAN .............................................................................................................................................................................................. 258
11.9.URBAN EDGE POLICY ........................................................................................................................................................................................ 259
11.10.ENCROACHMENT ON PROPERTY POLICY ............................................................................................................................................ 259
11.11.INVESTMENT AND INCENTIVES STRATEGY ........................................................................................................................................ 260
11.12.DISASTER MANAGEMENT PLAN ................................................................................................................................................................ 260
11.13.INTEGRATED ENVIRONMENTAL MANAGEMENT PLAN ............................................................................................................... 261
11.14.PAVEMENT MANAGEMENT SYSTEM ...................................................................................................................................................... 262
11.15.STORM-WATER MANAGEMENT SYSTEM .............................................................................................................................................. 263
11.16.COMPREHENSIVE INFRASTRUCTURE INVESTMENT PLAN......................................................................................................... 264
13 | P a g e F I N A L I D P 2 0 1 5 / 1 6
C. ACRONYMS
ABBREVIATION DESCRIPTION
ABET Adult Based Education and Training AIDS Acquired Immune Deficiency Syndrome
CBO’s Community Based Organizations CETA Construction Education and Training Authority CHBC Community Home Base Care CMIP Consolidated Municipal Infrastructure Programme
COGTA Department of Cooperative Governance and Traditional Affairs CPTR Current Public Transport Record DACE Department of Agriculture, Conservation and Environment DBSA Development Bank of South Africa DEAT Department of Environmental Affairs and Tourism DAC District AIDS Council
DALA Department of Agriculture and Land Administration DLA Department of Land Affairs
DLGH Department of Local Government and Housing DPLG Department of Provincial and Local Government DTI Department of Trade and Industry DM District Municipality
DMA District management Area DME Department of Minerals and Energy DPW Department of Public Works
DWAF Department of Water Affairs and Forestry ECA Environmental Conservation Act EIA Environmental Impact Assessment EIP Environmental Implementation Plan EHS Environmental Health Services EMP Environmental Management Plan EMS Environmental Management System
EPWP Expanded Public Works Programme FBS Free basic Services FBE Free Basic Electricity FPA Fire Protection Association GIS Geographic Information System
GSDM Gert Sibande District Municipality HDI Human Development Index HOD Head of Department IDP Integrated Development Planning IGR Inter-Governmental Relations IEM Integrated Environmental Management
IMEP Integrated Municipal Environmental Programme IWMP Integrated Waste Management Plan
IS Information System IT Information Technology
ITP Integrated Transport Plan KPA Key Performance Area KPI Key Performance Indicator LDO Land Development Objective LED Local Economic Development LLM Lekwa Local Municipality
LRAD Land Redistribution for Agricultural Development LUMS Land Use Management System MAM Multi Agency Mechanism MEC Member of Executive Committee
MFMA Municipal Finance Management Act MHS Municipal Health Services
14 | P a g e F I N A L I D P 2 0 1 5 / 1 6
MIG Municipal Infrastructure Grant MPCC Multi-Purpose Community Centers MSIG Municipal Systems Improvement Grant MSP Master Systems Plan
NEMA National Environmental Management Act NEPAD New Partnership for Africa‘s Development
NER National Electricity Regulator NGO Non-Governmental Organization NSDP National Spatial Development Perspective
NWMS National Waste Management Strategy PGDS Provincial Growth and Development Strategy PHC Primary Health Care PMS Performance Management System REDS Regional Electricity Distribution System SABS South Africa Bureau of Standards
SACOB South Africa Chamber of Business SALGA South Africa Local Government Association SANAC South African National AIDS Council SANCO South Africa National Civic Organization SAPS South African Police Service SETA Sector Education Training Authority SDF Spatial Development Framework SLA Service Level Agreement
SOER State of the Environment Report WSA Water Services Authorities
IWSDP Integrated Water Services Development Plan
15 | P a g e F I N A L I D P 2 0 1 5 / 1 6
1. CHAPTER 1: INTRODUCTION AND BACKGROUND
Since the first democratic elections in South Africa in 1994, the nature and functions of municipalities
changed drastically, with more emphasis being placed on the developmental role of local authorities.
Developmental local government means a commitment to working with citizens to find sustainable
ways to meet their social, economic and material needs to improve the quality of their lives. A duty is
also placed on local authorities to ensure that development policies and legislation are implemented.
Preference must therefore be given to this duty when managing the administrative and budgetary
processes of the municipality.
The Constitution of the Republic of South Africa (1996) commits government to take reasonable
measures, within its available resources, to ensure that all South Africans have access to adequate
housing, health care, education, food, water and social security. The current goal of municipalities is
to establish a planning process which is aimed at the redress of the imbalances created by the
apartheid era. Developmental local government can only be realised through integrated
development planning and specifically the compilation of an Integrated Development Plan (IDP).
1.1. PHYSICAL STRUCTURE OF THE IDP DOCUMENT The IDP document is structured to allow a logical flow from understanding our reality through to the
key programmes we deliver. See diagram below:
Fig 1: Physical structure of the IDP document
16 | P a g e F I N A L I D P 2 0 1 5 / 1 6
CHAPTER 1 BACKGROUND
CHAPTER 2: DEVELOPMENT STRATEGIES
CHAPTER 3: SITUATIONAL ANALYSIS
CHAPTER 4: PERFOMANCE MANAGEMENT SYSTEM
CHAPTER 5: SPATIAL RATIONALE
CHAPTER 6: FINANCIAL VIABILITY AND MANAGEMENT
CHAPTER 7: GOOD GOVERNANCE AND PUBLIC PARTICIPATION
CHAPTER 8: INTERGRATED HUMAN SETTLEMENT & DISASTER MANAGEMENT
CHAPTER 9: MUNICIPAL TRANSFORMATION & INSTITUTIONAL DEVELOPMENT
CHAPTER 10: MUNICIPAL PROGRAMMES AND PROJECTS
CHAPTER 11: MUNICIPAL SECTOR PLANS
17 | P a g e F I N A L I D P 2 0 1 5 / 1 6
1.2. LOCALIZED MANIFESTO VERSUS ACHIEVEMENTS OVER THE LAST FOUR YEARS
Challenges confronting the municipality include a declining revenue base and poor management of resources, inefficiencies that limit the manner in which the municipality interface with the communities, aging infrastructure due to truck haulage and deferred maintenance, structural inefficiencies that result in poor service delivery standards, low economic growth and high unemployment rate, vulnerable environmental assets and natural resources.
To address the identified challenges and work towards realization of the vision, the municipality has identified the following long- term strategic objective which is known as 5 LLM’s;
LLM: 1 Build local economies to create more employment, decent work & sustainable livelihoods
LLM: 2 Improve service and broaden access to them
LLM: 3 Promote more active community participation in local government
LLM: 4 Ensure more effective, accountable and clean local government that works with National and Provincial government.
LLM: 5 build more united, non-racial, integrated and safer communities
LEKWA LOCALISED MANIFESTO V/S ACHIEVEMENT OVER THE LAST 4 YEARS
LLM: 1.BUILDING LOCAL ECONOMIES TO CREATE MORE EMPLOYMENT, DECENT WORK AND SUSTAINABLE LIVELIHOODS
We will review and implement LED and Tourism strategy
Local Economic Development and Tourism strategy is under review with support from COGTA
A103(2014-02-31) LED & Tourism strategy review action plan
We will partner with business and social partners for decent and sustainable jobs through LED Forum and other Corporate social investment programmes
LLM has formed partnerships and other social partners and corporate social investment through LED Forum e.g. Future Forum (Anglo), Noble Group Steering Committee etc.
Re-launch of the LED Forum A115 (2014-07-31).
We will complete the Ubuhle Siyazenzela Chicken broiler project in Morgenzon
Ubuhle Siyazenzela Chicken broiler project in Morgenzon is complete and functional.
We will finalise the draft investment incentive policy
The draft investment incentive policy is still in draft form and need to table to council
C113 (2012-08-31 Revised Incentive Policy and A13 (2012-01-27)
18 | P a g e F I N A L I D P 2 0 1 5 / 1 6
LLM: 2. IMPROVE SERVICE AND BROADE ACCESS TO THEM
Speed up provision of access roads, water infrastructure, sanitation, electricity especially in rural areas
Water service Development plan is outdated need to be reviewed.
Comprehensive Infrastructure Plan developed.
Pavement Management System is outdated and needs to be reviewed.
Storm-Water master plan outdated need to be reviewed.
A132 Reprioritisation of Water and Sanitation Projects.
A121-129 Provision of Basic services in informal settlements (Revoked).
Ensure infrastructure projects are used to create employment through labour intensive, promote local contractors, skills development by using labour intensive methods including a massive pothole patching programmes
Municipal infrastructure project are used as EPWP in order to create employment at all times
A131 (2013-08-23) Implementation of Community Works Programme for the unemployed..
Expand free basic services on water and electricity, to include refuse removal to all poor households and continued universal access to free basic services
• Free basic services on water and
electricity, expanded to include refuse
removal to all poor households and
continued universal access to free basic
services e.g. Tariffs and policy review
annually and consulted via Mayoral izimbizo
on ward basis.
Ensure that the municipality adhere to the principle of Batho-Pele: employees will wear name tags all the time
Employees wear name tags all the time
The municipality holds highly the principle of Batho-Pele
Employees are held responsible and accountable for their performance through implementation of PMS so that the MM and Managers directly accountable to the MM can be evaluated.
The performance Management System is functional and is implemented by the Municipality.
The MM has signed the performance Agreements and as well as the Managers directly accountable to the MM can be evaluated.
However, the performance Management Plan needs to be reviewed.
A118 (2013-10-31) Signing and Approval of the SDBIP by Executive Mayor, MM, and HOD’s.
Ensure that all vacant positions are filled All critical positions have been filled
19 | P a g e F I N A L I D P 2 0 1 5 / 1 6
with properly qualified and suitable candidates
together with the section 57.
Resolutions C10 (2014-07-31), C15 (2013-12-06), C19, C11 all supported the appointment of Section 57 Managers directly accountable to the MM.
LLM: 3. PROMOTE MORE ACTIVE PARTICIPATION IN LOCAL GOVERNMENT - Work with the community to strengthen the
work of self-organized formations such as burial societies, stockvels, cultural groups, youth and women to deepen democracy
• The municipality work with the community to strengthen the work of self-organized formations such as burial societies, stockvels, cultural groups, youth and women to deepen democracy via structures such as LED Forum, IDP Forum, sector Collaboration Forum, Aids Council etc…
• A77 (2013-07-23) Municipal newsletter. • Mayoral business breakfast with business
sector.
- Assist with establishment of a community radio station and update our website on regular basis.
- An item was tabled to council for the community radio station and our website is timeously updated.
- A68 – C119 (2012-08-31) Establishment of the community radio station.
- An item was tabled to council for the community radio station and our website is timeously updated.
- A68 – C119 (2012-08-31) Establishment of the community radio station.
-
- All ward committees are well trained; functional, well-resourced and taken seriously through the office of the Speaker e.g. stipend and Laptops for Ward committees.
- A33 (2011-06-24) Election of ward committees, A94 (2011-11-11) Ward Committees functionality.
- A70 (2012-04-26) Participation indaba. - A98 (Community Participation Policy). -
- Hold at least six community meetings and six Mayoral Izimbizos per year.
-
- Municipality is holding annually 30 Mayoral Izimbizo or community meetings (Ward constitution) per financial year instead of the six community meetings and six Mayoral Izimbizos per year.
-
- Publish and report on regular basis the performance plan for improvement.
- The Municipality is annually publishing its performance plan, assessment outcomes and performance via all possible modes of communication e.g. local newspaper, annual reporting and website.
- Review the tendering system and make it transparent and deal systematically with corruption and shoddy contractual work and contractors who are delivering poor services will be blacklisted and be forbidden from doing business with the government.
-
- The Municipality has reviewed its tendering system and makes it transparent and deal systematically with corruption and shoddy contractual work and contractors who are delivering poor services but not known whether contractors are blacklisted and be forbidden from doing business with the
20 | P a g e F I N A L I D P 2 0 1 5 / 1 6
government. -
LLM: 4 ENSURE MORE EFFECTIVE, ACCOUNTABLE AND CLEAN LOCAL GOVERNMENT THAT WORKS WITH NATIONAL AND PROVINCIAL GOVERNMENT.
- Functioning of Municipal Sector collaboration forums for better integration and coordination of activities among 3 spheres of Government.
- The Municipality in terms of staff establishment has a new business unit which is responsible for Intergovernmental Relations to foster sector collaboration at all levels. This unit is headed by Manager IGR.
- Enhance our revenue collection and account to the community about the finances of the Municipality.
- Revenue Enhancement Strategy is being implemented and was approved by council.
- A21 (2013-01-25) Revenue enhancement Strategy.
- Improve our billing system and ensure that residents are properly billed through data cleansing and supplementary valuation roll.
- The Municipality has embarked on a data cleansing programme, Revenue Enhancement Strategy and Indigent Policy to ensure that residents are properly billed.
-
- Engage with all our communities so that those who can afford to pay, do pay for services consumed.
-
- The municipality is holding annually 3 Mayoral Izimbizo or Community meetings (ward consultation) per financial year e.g. Tariffs and policy review annually and consulted via Mayoral Izimbizo on ward basis.
-
- Update our indigent policy on regular basis.
-
- The indigent Policy has been reviewed and approved with budget annually.
-
- Achieve a clean audit by 2014. -
- The Municipality has achieved two consecutive qualified audit with findings for 2012/2013 and unqualified 2013/2014.
-
21 | P a g e F I N A L I D P 2 0 1 5 / 1 6
LLM: 5 BUILD MORE UNITED, NON-RACIAL, INTEGRATED AND SAFER COMMUNITIES.
- Establishment of Ext.8 with 4200 mixed residential units, to promote integrated Human Settlements
- Establishment of Ext.5 with 1000 units for middle class occupation
- The Municipality has reviewed its Human Settlement chapter that promotes Integrated Human Settlement e.g. Ext.8, Ext.5, Rooikoppen and the Agri-village proposal.
- Upgrading of all the informal settlements to eradicate service backlog
- Proclamation of the existing (17) informal settlement in terms of provision of water, sanitation etc.
1.3. LEGISLATIVE CONTEXT The planning context and policy context, within which the integrated development planning is undertaken, is established through national, provincial and local policy and legislation. The major planning instruments that have a critical impact on the IDP are: National Government, Provincial Government (Mpumalanga), District Municipal level and Local Municipal Level.
Legal framework under which planning operate in South Africa
There is a considerable array of legislation that controls planning within the geographic boundaries of
the Republic of South Africa. Some of the most important are as follows: -
22 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Constitution of RSA No 108 of 1996 – the primary role being the assigning of municipal Planning responsibility to municipalities
Municipal Systems Act No 32 of 2000 – setting out in Chapter 2 the requirement, amongst other, for newly elected municipal councils to prepare and adopt an integrated development plan (IDP) for their respective areas and to provide for annual revision thereof. The IDP is required in terms of the act to include a spatial development framework (SDF) which must include the provision of basic guidelines for a land use system for the municipality.
Development Facilitation Act No 67 of 1995 (DFA) – originally envisaged as interim legislation post the 1994 national elections to facilitate accelerated housing delivery by waving other legislation and giving decision making to provincial Development Tribunals (where established), but utilized to a large extent by the private sector for the development of amongst others, shopping centres, golf course estates, etc. Section of this legislation have since been declared unconstitutional by the Constitutional Court as it usurped the decision making powers of municipalities and is required to be repealed or amended by June 2012. Note: Despite sections of the Act being declared unconstitutional by the court, its General Principles for Land Development, as contained in Chapter 1, Section 3 of the act, are still deemed valid.
Less Formal Township Establishment Act No 113 of 1991 – this act provides for shortened procedures for the establishment of townships, for less formal forms of residential settlement and to regulate the use of land by tribal communities for communal forms of residential settlement. This act is administered by the provinces and it provides for the exclusion of certain laws and the suspension of servitudes and restrictive title deed conditions. Although not challenged as yet in the Constitutional Court, this law is also no doubt, like the DFA, unconstitutional as it shifts decision making from the municipalities to the provinces.
Planning Acts and Ordinances in the provinces. - The majority of legislation directly controlling planning in the nine provinces is still pre-1994 legislation enacted by the original four provinces of South Africa and they are all also generally unconstitutional in some or other aspect. Only in KwaZulu-Natal and in the Northern Cape has new planning legislation been enacted and put into effect since 1994 and even here certain aspects (relating to appeals) are challengeable.
Some of the other provinces are in the process of drafting new planning legislation. As a result of the Constitutional Court ruling with respect to the DFA and the tardiness of the preparation of the new legislation in some provinces, the Department of Rural Development and Land Affairs recently published the Spatial Planning and Land Use Management Bill for comment and which it hopes to have enacted by June 2012. The respective provincial legislation is listed above: -
23 | P a g e F I N A L I D P 2 0 1 5 / 1 6
1.4. LEGISLATIVE IMPERATIVES AFFECTING PLANNING
1.4.1. OUTCOME-BASED APPROACH TO DELIVERY
To give effect to the above 6 key programmes for delivery on this IDP, government has embarked on an outcomes -based approach to ensure the delivery / implementation of these objectives. In line with this approach, government has formulated and agreed on twelve key Outcomes. These Outcomes have been expanded into high-level outputs and activities, which in turn formed the basis of a series of performance agreements between the President and relevant Ministers. While all of the Outcomes can to some extent be supported through the work of local government, Outcome 9 is specifically directed at local government:
1. Improved quality of basic education.
2. A long and healthy life for all South Africans.
3. All people in South Africa are and feel safe.
4. Decent employment through inclusive economic growth.
5. A skilled and capable workforce to support an inclusive growth path.
6. An efficient, competitive and responsive economic infrastructure network.
7. Vibrant, equitable and sustainable rural communities with food security for all.
8. Sustainable human settlements and improved quality of household life.
9. A responsive, accountable, effective and efficient local government system:
- Output 1: Implement a differentiated approach to municipal financing, planning and support;
- Output 2: Improving access to basic services;
- Output 3: Implementation of the Community Work Programme;
- Output 4: Actions supportive of the human settlement outcome;
- Output 5: Deepen democracy through a refined Ward Committee model;
- Output 6: Administrative and financial capability; and
- Output 7: Single window of coordination
10. Environmental assets and natural resources that is well protected and continually enhanced.
24 | P a g e F I N A L I D P 2 0 1 5 / 1 6
11. Create a better South Africa and contribute to a better and safer Africa and World.
12. An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship.
1.4.2. MULTIDIMENSIONAL STRATEGIC FRAMEWORK
The need for a “multidimensional strategic framework” to bring about development by guiding key choices and actions to ensure a decent standard of living” for all South Africans by 2030 has been developed through the National Development Plan (NDP) 2030 and has now become the key driver of national policy. The NDP seeks to ensure that relations between national, provincial and local government are improved through a more proactive approach to managing the intergovernmental system, of which local government is central to the implementation of the NDP.
The following figure outlines this relationship.
25 | P a g e F I N A L I D P 2 0 1 5 / 1 6
26 | P a g e F I N A L I D P 2 0 1 5 / 1 6
In summary, the NDP intends to create a decent standard of living for all South Africans by 2030. A A decent standard of living consists of the following core elements:
Housing, water, electricity and sanitation
Employment
Recreation and leisure
Clean environment
Adequate nutrition
Role of Local Government
Safe and reliable public transport
Quality education and skills development
Safety and security
Quality health care
Social protection
Municipalities have a direct role to plan and deliver on water, sanitation, electricity, waste management, housing and roads and an indirect role to plan to guide the delivery of safety, health, education and job creation. The following diagram indicates that many of the elements of a decent standard of living depend on local government.
It is imperative to identify how municipalities can take forward NDP proposals within their mandate thus the need to strengthen the ability of local government to fulfil its developmental role. To this end, IDPs must focus attention on critical areas such as spatial planning, infrastructure and basic services and the correct prioritization and sequencing of these areas. IDP process needs to be led by municipal staff and it is critical that Mayors are seen as champions of the NDP in their municipalities as provided for in section 30 of the MSA. In the Budget Vote Speech on 17 July 2014, the Minister of Cooperative Governance and Traditional Affairs, Minister Pravin Gordhan highlighted key tasks to take South Africa forward during the next 5 years which is underpinned by the “Back to Basics” Strategy, of which Municipalities have a key role to play as a step towards the implementation of NDP.
27 | P a g e F I N A L I D P 2 0 1 5 / 1 6
The Back to Basics Strategy sets clear benchmarks of performance in an effort to ensure that all municipalities perform their basic responsibilities, every day, without fail while also responding vigorously to immediate crises and also understanding and responding to the structural and organizational challenges. It also strives to continue to build resilient local government institutions and collectively constructing more rigorous systems of intergovernmental relations planning and delivery. The Mpumalanga provincial implementation response to the NDP is contained in the Mpumalanga Vision 2030 Medium Term Strategic Framework (MTSF) document that provides a provincial expression of the key priorities, objectives and targets enumerated in the NDP and expressed within the manifesto. It is a focused and strategic implementation framework that provides a direct implementation response to the NDP, which describes the Province’s approach to realizing the objectives of the NDP in the provincial context. It builds on and informs past and existing sectoral and related planning interventions for the Province’s strategic overview in order to set high level provincial targets and facilitate decision making and prioritization as depicted in the diagram below:
It is to this end that the Municipality takes note of the implications of the NDP, MTSF, B2BStrategy and other integrated municipal support programme directives in developing its service delivery plans for the purposes of planning, budgeting, implementation, reporting and accountability. The following table briefly outlines the link between key national and provincial policy imperatives and how these are linked to the sphere of local government within the context of the Municipality.
28 | P a g e F I N A L I D P 2 0 1 5 / 1 6
KEY POLICY IMPERATIVES AND THEIR ALIGNMENT TO THE MUNICIPALITY’S NATIONAL KEY PERFORMANCE AREAS
NATIONAL KEY PERFORMANCE AREAS
KPA 1 BASIC SERVICE
DELIVERY
KPA 2 MUNICIPAL
TRANSFORMATION AND ORGANISATIONAL
DEVELOPMENT
KPA 3 LOCAL ECONOMIC
DEVELOPMENT
KPA 4: MUNICIPAL FINANCIAL
VIABILITY AND MANAGEMENT
KPA 5: GOOD GOVERNANCE
AND PUBLIC PARTICIPATION
KPA 6: SPATIAL
RATIONAL
An effective, competitive and responsive economic infrastructure network
A responsive and accountable, effective and efficient local government system
Decent employment through inclusive economic growth
A responsive and accountable, effective and efficient local government system
A responsive and accountable, effective and efficient local government system
Sustainable human settlements and improved quality of household life
Protection and enhancement of environmental assets and natural resources
All people in South Africa to feel safe
NATIONAL DEVELOPMENT PLAN 2030 The 6 Pillars that represent the broad objectives of the plan to eliminate poverty and reduce inequality
P1: Capabilities include skills, infrastructure, social security, strong institutions and partnerships both within the country and with key international partners
P2: Focusing on key capabilities of both people and the country
P3: Uniting South Africans of all races and classes around a common programme to eliminate poverty and reduce inequality
P4: Building a capable and developmental state
P1: Capabilities include skills, infrastructure, social security, strong institutions and partnerships both within the country and with key international partners
P1:Capabilities include skills, infrastructure, social security, strong institutions and partnerships both within the country and with key international partners
P5: Raising economic growth, promoting exports and making the economy more labour absorbing
P6:Strong leadership throughout society that work together to solve our problems
NDP 2030 OUTCOMES
Nation building and social cohesion
Developing a capable and developmental state at local government level
Economy and development
Developing a capable and developmental state
Developing a capable and developmental state
Transforming human settlements and space economy
Environmental sustainability and resilience
Economy and development
Building safer communities
BACK TO BASICS GOALS
29 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Goal 2: Create conditions for decent living by consistently delivering municipal services to the right quality and standard. This includes planning for and delivery of infrastructure and amenities, maintenance and upkeep, including the budgeting to do this. Ensure no failures in services and where there are, restore services with urgency.
Goal 5: Build and maintain sound institutional and administrative capabilities, administered and managed by dedicated and skilled personnel at all levels
Goal 4: Ensure sound financial management and accounting, and prudently manage resources so as to sustainably deliver services and bring development to communities.
Goal 3: Be well governed and demonstrate good governance and administration - cut wastage, spend public funds prudently, hire competent staff, ensure transparency and accountability
Goal 1: Put people and their concerns first and ensure constant contact with communities through effective public participation platforms. This is the essence of our ‘back to basics’ approach.
Goal 2: Create conditions for decent living by consistently delivering municipal services to the right quality and standard. This includes planning for and delivery of infrastructure and amenities, maintenance and upkeep, including the budgeting to do this. Ensure no failures in services and where there are, restore services with urgency.
BACK TO BASICS OUTCOMES
Delivering basic services
Building capabilities and good governance
Building capabilities
Sound financial management
Putting people first and engaging with communities and good governance
Delivering basic services
MPUMALANGA MEDIUM TERM STRATEGIC FRAMEWORK
Delivery Agreement Outcome 9: A responsive, accountable and effective local government system
Single window of Coordination established for review of policy and legislation, revision of planning, improved intervention and support mechanisms and alignment of capacity building programmes within government
Improved Access to Basic Services
Administrative and financial capabilities of municipalities are enhanced
Implementation of the Community Work Programme
A policy Framework that provides for a differentiated approach to Municipal Financing, Planning and support is implemented
Single Window of Coordination
Actions supportive to Human Settlements
Deepening democracy through a refined Ward Committee model
PROVINCIAL MTSF OUTPUTS FOR LOCAL GOVERNMENT
Members of society have sustainable & reliable access to basic services
Sound Financial and administrative management
Local public employment programmes expanded through the Community Work Programme
Sound Financial and administrative management
Intergovernmental and democratic governance arrangements for a functional system of cooperative governance strengthened
Transformed human settlements
Improved Access to Basic Services
Promotion of social and economic development
30 | P a g e F I N A L I D P 2 0 1 5 / 1 6
MTSF IMPACT INDICATOR
Increased number of households with access to services
Improved public trust and confidence in local government
Increased number of job opportunities created
Improved audit outcome
Improved public trust and confidence in local government
Integrated human settlements
INTEGRATED MUNICIPAL SUPPORT PROGRAMME
Creating decent living conditions
Institutional capacity and administrative capability
Creating decent living conditions
Financial management
Good governance and key activities through public participation and community involvement
Creating decent living conditions
GERT SIBANDE DISTRICT MUNICIPALITY STRATEGIC OBJECTIVES
Basic Service Delivery and Infrastructure Development
Municipal Transformation and institutional Organizational Development
Local Economic Development
Municipal Financial Viability and Management
Intergovernmental Relations, Good Governance and Public Participation
Spatial Rationale and Municipal Planning Alignment
Improve the quantity and quality of municipal basic services to the people
Improve and sustain financial, human resources and management excellence across the district
Creation of decent job creation, poverty alleviation, sustainable livelihoods & rural development, food security and land reform through LED
Improve and sustain financial, human resources and management excellence across the district
Resource management, Internal governance and information
Stimulate integrated and sustainable and shared regional development through aligned spatial planning
Advance Community Well-being
Restore and maintain the institutional integrity of the District and its constituent LMs
Deepen democracy through effectively and efficiently functional public participation structures, mechanism and processes
Develop internal and external stakeholder relationships and partnerships
Create a single window of co- ordination for the support, monitoring and intervention in municipalities within the District
LEKWA LOCAL MUNICIPALITY (LLM) STRATEGIC OBJECTIVES
LLM 2: Improve services and broaden access to them
LLM 4:Ensure more effective, accountable and clean local government that works
LLM 1: Build local economies to create more employment, decent work and sustainable livelihoods
LLM 4: Ensure more effective, accountable and clean local government that works
LLM 3:Promote more active community participation in local government
LLM 5: Build more united, non-racial, integrated and safer communities
31 | P a g e F I N A L I D P 2 0 1 5 / 1 6
1.5. INTERGOVERNMENTAL PLANNING Section 41(1) of the Constitution contains the principles of co-operative government and inter-governmental relations. Accordingly Section 41(1) determines that:
All spheres of government and all organs of state within each sphere must -
o preserves the peace, national unity and the indivisibility of the Republic; o secures the well-being of the people of the Republic; o provides effective, transparent, accountable and coherent government for the
Republic as a whole; o is loyal to the Constitution, the Republic and its people; o respects the constitutional status, institutions, powers and functions of government
in the other spheres; o Not assume any power or function except those conferred on them in terms of the
Constitution; o Exercise their powers and perform their functions in a manner that does not
encroach on the geographical, functional or institutional integrity of government in another sphere; and
o co-operate with one another in mutual trust and good faith by – - fostering friendly relations; - Assisting and supporting one another; - Informing one another of, and consulting one another on, matters of
common interest; - Coordinating their actions and legislation with one another; - adhering to agreed procedures; and - Avoiding legal proceedings against one another
Inter-governmental relations‟ means the relationship between national, provincial and local government. The Constitution states that the three spheres of government are distinctive, inter-dependent and inter-related co-operative governance means that national, provincial and local government should work together to provide citizens with a comprehensive package of services.
1.6. IDP PUBLIC PARTICIPATION PROCESS The citizens of the Greater Lekwa were afforded an opportunity to raise issues they deem very important around service delivery. The reason for this, the final draft IDP and Budget review for 2014/2015 was only adopted by council on 28 May 2014 and the IDP/Budget/PM process plan for 2015/2016 was as well only approved by council on 30 August 2014. This process is critical because it entailed submission of inputs for the fifth review of the Integrated Development Planning (IDP) that is to be aligned with the capital and operational Budget of 2014/2015. Citizens had direct interaction with their respective ward councillors, senior management and officials of the Lekwa Municipality. The public engagement meetings took place before the first draft IDP and Budget review document for 2015/2016 is tabled before council on 31 March 2015. After the IDP/Budget has been adopted by council, it will be send out for public comments and is only when we will allow the public to submit their inputs before the final document is finalised and been tabled to council for approval on end May 2015.
The following pictures demonstrate evidence of the public participation meetings that took place in November 2014 in all 15 wards in the greater Lekwa.
32 | P a g e F I N A L I D P 2 0 1 5 / 1 6
1.7. IDP REVIEW PROCESS The IDP is reviewed annually, in consultation with communities and stakeholders. Public participation in planning is important, as the municipality has since 5 December 2000 been redefined to include councillors, officials and the community.
The IDP Review process in Lekwa has benefitted from the active community forums within our area, including ward-based inputs from our residents. We are grateful for the resilience in our community in participating in our IDP processes, but we know we can still improve as a municipal institution in how we engage with municipal-wide representative groups and our partners in the rest of government to mobilise resources for the development of our municipal area.
Through the IDP process, we wish to promote shared leadership on the ground, to release creative energy in solving our unique development challenges, and to ensure ownership of our plan. We have applied community-based planning techniques to identify development needs within our 13 wards. We endeavour to move to implement ward-based plans that speak directly to the specific needs in each ward, and to improve the active monitoring of implementation through ward committee structures.
The preparation of a Five-year Integrated Development Plan (IDP) by municipalities is a legislative requirement according to the Municipal Systems Act (MSA) Act No. 32 of 2000. Lekwa Local Municipality has embarked completed on this process in line with Chapter 5, Section 25, of the MSA.
It will be noted that, in terms of section 34 of the Local Government: Municipal Systems Act, No. 32 of 2000, all municipalities are required to review their Integrated Development Plans (IDP’s) on an five year basis (and to the extent that changing circumstances, needs and demands) - in accordance with a prescribed process.
The annual review process thus relates to the assessment of the Municipality’s performance against organizational objectives as well as implementation delivery, and also takes into cognizance any new information or change in circumstances that might have arisen subsequent to the adoption of the previous IDP. The review and amendment process must also adhere to the requirements for public participation as articulated to Chapter 4 of the MSA (2000).In terms of the IDP Review Guidelines, IDPs are reviewed based on 4 primary areas of intervention, i.e. Annual IDP Review, the IDP Process, Amendments in Response to Changing Municipal Circumstances, and Comment from the MEC. The process described and outlined in the flow chart below represents a continuous cycle of planning, implementation and review. Implementation commences after the Municipal Council adopts the initial IDP whilst Public Participation remains pivotal throughout the process of the IDP.
In terms of the National Department of Provincial and Local Government’s document entitled Guide VI: Implementing the IDP, the process to be followed when undertaking an annual IDP Review is as follows:
33 | P a g e F I N A L I D P 2 0 1 5 / 1 6
The annual IDP review process is set out below:
Source: National Department of Provincial and Local Government’s document entitled Guide VI: Implementing the IDP
IDP
REV
IEW
PR
OC
ESS
Performance Management
System
Organisational Performance Management Preparing For IDP Review
Implementation Management Information Institutional Preparedness
Individual Performance Management
Required IDP Process And Product Improvement
Reporting And Close-out
New Informantion Or Knowlegde
Inter-governmental Planning And Budgeting Information
New Or Updated Baseline Information
Change To Policy Or Legislation
More Indepth Information On Priority Issues
Results Of Feasibility Studies And Environmental Impact Assessments
Changing Conditions And Unexpected Events
Inputs From Stakeholder And Constituency
Decide On And Make Relevant Changes
Council Adoption
As Per MSA Regulations
Prepare And Adopt Annual Budget
Municipal Budget To Be Informed By Revised IDP
PUBLIC PARTICIPATION
IDP IMPLEMENBTATION
IDP MONITORING
34 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Table 2: ORGANIZATIONAL ARRANGEMENT FOR PUBLIC PARTICIPATION
Table below indicates the roles and responsibilities of the various internal stakeholders within the
IDP Review process. The tables specifically focus on the IDP Review activities of the various role
players.
NO. ROLE PLAYERS ROLES AND RESPONSIBILITIES
1. Municipal Council The Council will approve the reviewed IDP.
Will consider the Framework/Process Plan which should set out the process for the new IDP cycle.
2. Executive Mayor and Mayoral Committee
The Mayoral Committee must:
Decide on the Process Plan for IDP Review
Responsible for overall management, co-ordination and monitoring of the review process, and may assign responsibilities to the Municipal Manager
Submit reviewed IDP framework and draft IDP to Council
Develop terms and criteria for Representative Forum.
Give political direction
3. Municipal Manager with delegated powers to the IDP Manager
The Municipal Manager is responsible for the management and co-ordination of the preparation of the IDP process which include but not limited to the following:
Responsible for the day to day management of the planning process plan and ensuring that timeframes are being adhere to and resources are and managed effectively and efficiently;
Co-ordinate the involvement of all different role players;
Ensuring the horizontal and vertical alignment in the planning process, including Sectors;
Ensure that the links between the processes of performance management, monitoring, evaluation and review are maintained;
Ensuring compliance with National and Provincial requirements and legislations;
Ensure appropriate participation of all the relevant Stakeholders;
Ensure proper documentation of outcomes;
Chairing the Steering Committee, Technical Committee; and
Management of Service Providers
4. IDP Steering Committee Framework/Process Plan management structure;
Allocation of duties and monitoring;
Overall management including the appointment of technical consultants;
Decision on roles and responsibilities;
Commission research studies and recommend appointment of service providers;
Decide on matters to be referred to Technical Committee for alignment and integration purposes.
5. IDP Representative Forum The Executive Mayor or Representative chairs the forum meetings.
Constituted of the Executive Mayor/IDP manager//CBO’s/NGO’s/Business Forum/ Community Forum/Youth /Woman/ Disabled Org./ Political parties /Traditional Leadership
This Forum consist of community participation structure/stakeholders in their respective organized formations, to represent the interests of all stakeholders and ensure proper communication to guarantee representative and collaborative participation during the review process;
Will provide an organizational mechanisms for discussion, negotiations and decision making between the stakeholders including municipalities and government departments during the Municipal process;
Monitor the performance of the planning and implementation process.
Make recommendations to the council on planning and development priorities.
6. IDP Technical Committee Will be chaired by the Municipal Manager or a designated Official. Consists of the Municipal Manager and Heads of Departments as well as Divisional Managers.
Will deal with matters relevant and relating to District wide issues;
Consider District wide programs and integration to PGDS;
Consider and advise the IDP Representative Forum on the evaluation of sector plans;
Attend to the alignment of the IDP to that of the GSDM
Deliberate on inter-sectoral programmes and recommends to the Representative Forum;
Give advice and foster sectoral alignment; and
Will timeously report on progress which will then be forwarded to the Steering Committee
35 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Table 3: DISTRIBUTION OF ROLES AND RESPONSIBILITIES (INTERNALLY & EXTERNALLY)(
NO. IGR FORUMS ROLES AND RESPONSIBILITIES
1. Gert Sibande District Municipality
(Inter-municipal planning)
Horizontal alignment of IDPs between local and district municipalities;
Vertical alignment between district and local municipalities, National and Provincial Governments as well as the service providers;
Facilitate vertical alignment of IDPs with other spheres of government and sector departments and the preparation of joint strategy workshops with local municipalities, provincial and national role players and other subject matter specialists;
Formulate the District’s Process Plan based on the Framework;
Formulate, manage, and approve the District’s IDP
Monitor and evaluate the District IDP Process Plan;
Ensure that draft process plans are compiled by local municipalities;
Ensure that the process plans adhere to the Framework as agreed;
Ensure that all municipalities under the district adhere to the timeframes in the Framework Plan as agreed;
Co-ordinate the alignment of the district’s budget process with the District IDP Process and local IDP Processes.
2. IDP Managers Forum Chairperson: District IDP Manager;
Secretariat: PIMS Staff;
Consist of the seven IDP Managers and representatives on the sector departments;
The IDP Managers Forum will meet bi-monthly to attend to the following issues:
To co-ordinate technical submission and the compilation of the respective IDP documentation;
Ensure horizontal alignment between the district and local municipalities IDP’s; and
Ensure vertical alignment between municipalities, National and Provincial Government.
Ensure that all reports of the Extended Technical Committees are taken up in the IDP process.
3. Sector Departments Identify an IDP co-ordinator in the Sector Department (knowledgeable persons consistent in the revision process and responsible for all IDP related issues in the District);
Contribute knowledge and ideas about planning issues in the province and sectors;
Contribute relevant information on the provincial sector departments’ plans, programmes, budgets, objectives, strategies and projects in a concise and accessible manner;
Ensure that their objectives, strategies and projects take various IDP into consideration and adjust their budgets as informed by the various IDPs;
Contribute sector expertise and technical knowledge to the formulation of municipal strategies and projects;
Engage in a process of alignment with district municipalities; and participate in the provincial management system and co-ordination;
Ensure active participation in various Technical Sub-Committees and IDP Extended Technical Committees.
4. Mayoral Outreach (Izimbizos)
Through road shows / Outreach programmes to get community inputs and to provide feedback
5. Ward Committees Consulted via the Executive Mayoral outreach.
Link the planning process to their wards
Assist in the organizing of public consultation and participation
Ensure that the annual municipal budget and business plans are linked to and based on the IDP
6. CBW’s / NGO’s / CDW’s To provide vital information and support during planning, evaluation, monitoring through the Representative Forum.
7. Department of Corporate Governance and Traditional Affairs
A representative from the Department will serve as permanent member of the District IDP Extended Technical Committee.
The department will finance to attendance of meetings of the various technical committee meetings by the relevant sector departments;
Will guide provincial sector departments’ participation in and their contribution to the municipal planning processes;
Will guide municipalities in assessing draft IDPs and in aligning their sector programmes and budget with the IDP;
Assist in accessing financial grants for IDP process;
Monitor progress of the IDP processes through the district and more specifically the IDP Managers Forum;
Facilitate resolution of disputes related to the IDP;
Organize IDP related-training when required;
Co-ordinate and manage the MEC’s assessment / comments of IDPs.
36 | P a g e F I N A L I D P 2 0 1 5 / 1 6
1.8. IDP PROCESS PLAN FOR 2015/2016 An Integrated Development Plan, Budget and Performance Management System require a planning process with the involvement of a wide range of roles players from inside the area of jurisdiction of the Lekwa municipality. Other role players are the Gert Sibande District Municipality, Provincial - and National Sector Department. Such a process needs to be properly organized and prepared. The IDP should be completed towards the end of March 2015. The process plan, which serves a business plan, should have been submitted to the provincial Department of Corporative Governance and Traditional Affairs and Gert Sibande District Municipality. It is necessary to briefly summarise the process followed for the 2015/2016 IDP process as prescribed in the IDP Process Plan. The components of the Process Plan are as follows:
Progress reporting;
Year Planner;
Ward Analysis;
Needs Collection;
Updating of Projects;
Final Document Compilation;
IDP’s are formulated in terms of the Municipal Systems Act, 2000 (Act 32 of 2000) and need to be revised on an annual basis. It is of critical importance that the IDP process informs the Budget and therefore the IDP needs to be far advanced in order to align the two processes. (Refer to Table “A” for more detail) During the compilation of this IDP process plan, Provincial and District Council Guidelines were also taken into consideration as we are required to align with the district.
Table: Yearly Process Plan
Action/Project Jul 13
Aug 13
Sept 13
Oct 13
Nov 13
Dec 13
Jan 14
Feb 14
March 14
Apr 14
May 14
June 14
Compilation and approval of Process Plan
Status Quo & Analysis
Compilation and Finalization of Ward IDP documents
Ward Committee public meetings (IDP)
IDP Representative forum meeting / meetings
Draft IDP & Budget document completed
Public meetings (Draft Budget)
Draft IDP & Budget approved by Council
Final Council approval
37 | P a g e F I N A L I D P 2 0 1 5 / 1 6
2. CHAPTER 2: DEVELOPMENT STRATEGIES
2.1. INTRODUCTION
This section provides the strategic IDP Review Framework (Implementation Framework) for the 2011 – 2012 IDP Review process. The municipal vision provides an overarching guideline to the municipality, with the municipal objectives and strategies providing the detail implementation framework.
The Municipality implements its mandate in accordance with the powers and functions assigned to it by the Constitution; and continue to endeavour to do so. There are no agreements between the Municipality and other organs of government to implement its powers and functions.
2.2. LEKWA LOCAL MUNICIPALITY’S “VISION”
A vision is a statement of the desired long-term development of the municipality based on the identified strategic issues and related to the specific conditions in the municipal area.
The Municipality’s Development Vision developed in 2006 remains unchanged reads as follows:
Vision “To be the leading, people centred municipality excelling in economic growth, development and governance”
To realize this vision,
We believe there are basic elements that all citizens, the business community and visitors must realize.
2.3. LEKWA LOCAL MUNICIPALITY’S “MISSION
They must be able to see:
• Transparent and accountable governance
• Accelerated customer focused affordable service delivery
• Creation of conducive environment for economic development and growth
• Sustainable infrastructural development and maintenance
• Enhanced community participation in the affairs of the municipality
• To initiate ground breaking innovations in the way we conduct our business
CORE VALUES
• Excellence
• Trustworthiness
• Timeous Responsiveness
• Transparency
• Batho-Pele Principles
Achieving the vision as interpreted, will also mean addressing the key development challenges by
making key interventions with the following goals:
38 | P a g e F I N A L I D P 2 0 1 5 / 1 6
2.4. STRATEGIC FOCUS AREA
Emanating from the situational analysis and the ANC manifesto of 2013-2016 undertaken towards
the development of the IDP, the municipality identified a number of challenges and constraints
which impact on the way the municipality functions and fulfils its mandate as per section 152 of the
South African constitution. Challenges confronting the municipality include a declining revenue base
and poor management of resources, inefficiencies that limit the manner in which the municipality
interface with the communities, aging infrastructure due to truck haulage and deferred maintenance,
structural inefficiencies that result in poor service delivery standards, low economic growth and high
unemployment rate, vulnerable environmental assets and natural resources.
To address the identified challenges and work towards realization of the vision, the municipality has
identified the following long- term strategic objective which will be known as 5 LLM’s;
LLM: 1 Build local economies to create more employment, decent work & sustainable livelihoods
LLM: 2 Improve service and broaden access to them
LLM: 3 Promote more active community participation in local government
LLM: 4 Ensure more effective, accountable and clean local government that works with
LLM: 5 build more united, non-racial, integrated and safer communities
The municipality has aligned the key strategic objectives and will strive to attain them within the
context of the five key local government performance areas:
The Key Development Objectives approach to Performance Management, However, the Municipal
Systems Act no:32 of 2000 require that the Performance Management System represent the
Municipality’s cycle and processes of performance planning, monitoring, measurement, review,
reporting and improvement. In adopting this strategy, and in keeping with the Key Performance
Areas indicated by the Department of Provincial and Local Government, the Key Development
Objectives will be now be customized using the following five perspectives or Key Performance
Areas:
Infrastructure Development and Service Delivery
Local Economic Development (LED)
Municipal Financial Viability and Management
Good Governance and Public Participation
Municipal Transformation and Organizational Development
Taking into account the prevailing economic environment and global factors that impact on
development, the municipality has made some significant strides or inroads to address key
development challenges within the LLM. There is however more work to be done towards addressing
the identified focal areas.
2.5. NINE (9) STRATEGIC FOCUS AREAS
Over the next five year term municipality will concentrate on the Nine (9) strategic focal areas outlined below
39 | P a g e F I N A L I D P 2 0 1 5 / 1 6
2.5.1. STRATEGIC FOCUS AREA 1: EQUITABLE PROVISION OF SERVICES SUCH AS WATER, SANITATION, ELECTRICITY, WASTE REMOVAL ETC.
In the next five years the municipality will ensure that residents have equal access to services they are entitled to. Some areas like Platrand, Holmdene, Hartbeeskuil and Folly, by virtue of their location do not receive certain services. For example most of these areas are not provided with a refuse removal service and do not benefit from free basic electricity, water, sanitation services. Disparities also exist within the urban areas wherein standards of service vary.
2.5.2. STRATEGIC FOCUS AREA 2: CREATION OF AN INTEGRATED AND SUSTAINABLE
HUMAN SETTLEMENT
The focus over the past has been on delivering basic needs and housing. In spite of the remaining backlogs major strides have been in this regard. However there still remains a huge challenge in terms of ensuring that we do not just deliver houses but create integrated and sustainable settlements. The challenge is about building sustainable human settlement where residents have access to social and community facilities, economic opportunities, a healthy and sustainable environment where opportunities can be accessed through convenient public transport and safe roads network.
Integral to the creation of sustainable human settlement is, integrated planning and implementation. The municipality has developed its Integrated Human Settlement Plan (Housing Chapter), which will guide future development and investment.
2.5.3. STRATEGIC FOCUS AREA 3: CREATION OF A LINKED ECOLOGICAL OPEN SPACE
The aim of an Open Space is to establish a thorough understanding on the intrinsic value of Open Space and to then develop a visionary roadmap towards the creation of an exceptional Open Space network for the town and its people
2.5.4. STRATEGIC FOCUS AREA 4: DELINEATION OF AN URBAN EDGE
The delineation of an urban edge is envisaged in order to:
Control sprawl.
Direct development in appropriate areas and
Assist in countering the outward pressure for urban expansion. This policy should also contain guidelines for the development inside and outside the urban edge
2.5.5. STRATEGIC FOCUS AREA 5: ESTABLISHMENT OF AN EFFICIENT ACCESS AND INTEGRATED MOBILITY
It is common knowledge that within the municipality access to basic households and community services are less optimal. Mobility to access services is further constrained by the fragmented spatial form which is largely attributable to flawed apartheid spatial planning patterns. There are also disparities in how rural and urban communities’ access services, with provision of services biased in favour of urban services. The disparities will have to be addressed in a manner that makes no distinction between rural and urban areas.
To improve mobility within LLM will also require expediting the implementation of the Integrated Transport Plan including connecting the urban nodes
2.5.6. STRATEGIC FOCUS AREA 6: CREATION OF A FUNCTIONAL HIERACHY
Development needs to be concentrated and directed to specific nodes and that higher densities should be encouraged. Although the SDF, from a larger strategic spatial perspective, aims to guide
40 | P a g e F I N A L I D P 2 0 1 5 / 1 6
and direct such future development it is still necessary to develop specific development strategies and guidelines to control and direct such development. This implies that nodes are very important in a sense that the upliftment of rural areas as residents are mostly reliant on non-motorized transport and have to travel long distances to access basic facilities.
First Order Node: Standerton, Second Order Node: Morgenzon, Third Order Node: Thuthukani, Platrand and Holmdene and Fourth Order Node: Hartbeeskuil, the Folly, Val, Node1, 2 and 3.
2.5.7. STRATEGIC FOCUS AREA 7: FINANCIAL AND ENVIRONMENTAL SUSTAINABILITY
In order for the municipality to fulfil its mandate as stipulated in the constitution of the country, there is a need to maintain financial viability and expand its revenue base in relation to expenditure. This requires robust strategies to turn around the current predicament and ensure that the municipality is a financial sound position over the next five years and beyond.
With regard to environmental sustainability, the municipality has ecologically sensitive land that has to be protected from urban development and those areas include areas such as Firstly; Grootdraai Dam, Wetlands and Pans, Rivers and Water courses, Conservative areas and Koppies, Important and Necessary Areas and highly significant Areas and Ecological Corridors.
Secondly; land that has high agricultural potential and land that is currently used for agriculture was identified to be protected from urban development.
2.5.8. STRATEGIC FOCUS AREA 8: EFFECTIVE LEADERSHIP AND GOOD GOVERNANCE
Corruption and poor service delivery undermines the credibility of the state. Poor state credibility leads to a democratic deficit undermining democracy and investment confidence. A weak local government leads to low investor confidence for both the state and private sector decision. Poor governance leads to poor economic performance.
A well governed municipality means a clear and transparent agenda for long term strategic work is formulated in co-operation with all stakeholders and communicated to all parties affected by the development process. A well governed municipality is dependent on a reciprocal approach by other government spheres and agencies. Increased community feedback and engagement and improved customer reciprocity are other mitigating measures to apply in a democratic and well governed municipality. Going forward the municipality will strive to become a well governed municipality.
2.5.9. STRATEGIC FOCUS AREA 9: BOOSTING THE LOCAL ECONOMY AND JOB CREATION
The municipality acknowledges that low economic growth and high unemployment rate are still
prevalent and present a major challenge. These further translate to relatively high levels of poverty
which is widespread within the LLM.
High dependency ratio (11700 H/H living below poverty lines), Low literacy and education levels, a
relatively high Gini coefficients or high levels of income inequality, labor dependency ratio, which
indicates the number of persons that each economically active person has to support, is 3.88 prove
some serious treats to the future development of the local economy.
The main focus of the municipality is placed mainly on the following:
• Promote and support sustainability of existing businesses. • Promote small and micro sized rural enterprises. • Tourism growth and promotion: conferencing, casino, motels game farms, natural sites ect.
41 | P a g e F I N A L I D P 2 0 1 5 / 1 6
• Creation of job opportunities. • Industries to support SMME activities. • Improve skills development. • Increase the revenue potential of the Municipality. • Develop the business potential of the area. • Establish the municipality as one of preference for national and international visitors.
42 | P a g e F I N A L I D P 2 0 1 5 / 1 6
3..CHAPTER 3 : SITUATIONAL ANALYSIS
Area: 4585km²
Description: Lekwa Local Municipality was established on the 5th of December 2000 after the amalgamation of three former Transitional Local Councils, namely Standerton, Sakhile and Morgenzon. Lekwa Local Municipality is one of seven municipalities within the Gert Sibande District Municipality in the Mpumalanga province. It is located in the south-west of the Gert Sibande District Municipality, with immediate entrances to the KwaZulu-Natal, Gauteng and Free State provinces. Newcastle, Heidelberg and Vrede are respective immediate entrances. Standerton serves as an urban node, whilst Morgenzon, which is 45km north-east of Standerton, serves as a satellite node. It is landlocked by the following local municipalities: Dr Pixley Ka Isaka Seme and Msukaligwa on the east, Dipaliseng on the west, and Govan Mbeki on the north. The south edge is abutted by Mpumelelo Local Municipality, which is in the northern part of the Free State province. The Lekwa Municipality lies on the large open plains of the Highveld region, which is characterised by tall grass, and it is transversed by the Vaal River, which flows in a western direction. The municipality is named after the Vaal River, which is commonly known as Lekwa (the Sesotho name for the Vaal River).
Cities/Towns: Morgenzon, Standerton
Main Economic Sectors: Agriculture, forestry and fishing (30%), community, social and personal services (13%), and Private households (12%).
43 | P a g e F I N A L I D P 2 0 1 5 / 1 6
3.1. MUNICIPAL DEMOGRAPHICAL OVERVIEW Population 115 662
Age Structure
Population under 15 28.60%
Population 15 to 64 66.40%
Population over 65 5.00%
Dependency Ratio
Per 100 (15-64) 50.60
Sex Ratio
Males per 100 females 99.40
Population Growth
Per annum 1.13%
Labour Market
Unemployment rate (official) 25.90%
Youth unemployment rate (official) 15-34 35.20%
Education (aged 20 +)
No schooling 11.20%
Higher education 10.30%
Matric 25.10%
Household Dynamics
Households 31 071
Average household size 3.60
Female headed households 35.70%
Formal dwellings 73.60%
Housing owned 50.00%
Household Services
Flush toilet connected to sewerage 83.60%
Weekly refuse removal 82.20%
Piped water inside dwelling 55.20%
Electricity for lighting 88.60%
44 | P a g e F I N A L I D P 2 0 1 5 / 1 6
3.2. SOCIO-ECONOMIC ANALYSIS
3.2.1. DEMOGRAPHIC INDICATORS
DEMOGRAPHIC INDICATORS
Stats SA
Census
Stats SA Census
Share of Gert Sibande’s figure
Share of Mpumalanga figure
Ranking: highest (1) – lowest (18)
2001 2011 2011 2011
Population number 103 262 115 662 11.1% 2.9% 12
Number of households 26 199 31 071 11.4% 2.9% 13
Area size - km2 4 586 14.4% 6.0% 10
Population per km2
25
According to Stats-SA (2011 Census), 115 662 people were recorded in Lekwa – 11.1% of Gert Sibande’s population.
Population grew by 12.0% between 2001 & 2011 while annualised population growth rate was measured at 1.1%.
The population number in 2030 estimated at 143 464 people given the historic population growth per annum.
84.2% Africans, Whites 11.4%, Colored 2.9%, Asians 1.2% and Others 0.3%.
Males 49.8% and females 50.2%.
Youth of up to 34 years, 65.2% of Lekwa’s population.
Number of households 31 071 (3.7 people per household) – 11.4% of Gert Sibande’s
Female headed households 35.7% and child headed (10-17 years) households 0.3 % in 2011
45 | P a g e F I N A L I D P 2 0 1 5 / 1 6
3.2.2. YOUTH INDICATORS
Relevant indicators regarding youth by region, 2011 Census
Region Youth (0-34 years) as % of population
Child headed households as % of total households
Child support grant as % of total grants (2013/14)
Youth unemployment rate
Gert Sibande 69.0% 0.7% 72.3% 38.4%
Chief Albert Luthuli 72.5% 1.1% 77.0% 45.1%
Msukaligwa 69.1% 0.6% 71.5% 34.5%
Mkhondo 72.9% 1.1% 73.0% 44.6%
Dr Pixley Ka Isaka
Seme
69.3% 1.2% 69.3% 45.1%
Lekwa
65.2% 0.3% 64.5% 35.2%
3.2.3. LABOUR INDICATORS
LABOUR INDICATORS Census Census Share of Gert Sibande's figure
Ranking: best (1) – worst (18)
2001 2011 2011
Working age population (15-64) 66 210 76 784
Economically Active Population (EAP)/Labour Force
41 871 46 013
Number of employed 26 584 34 118 13.2%
Number of unemployed 15 287 11 895 10.8%
Unemployment rate (%) 36.5% 25.9% 3
46 | P a g e F I N A L I D P 2 0 1 5 / 1 6
• Unemployment rate of 25.9% (strict definition) in 2011 – 11 895 unemployed as a percentage of the EAP of 46 013 – decreasing trend (estimated 2013 unemployment rate by IHS Global Insight 23.2%).
• Unemployment rate for females 33.9% and males 19.5% - youth unemployment rate at 35.2% in 2011. • Highest unemployment rate in Ward 14 (39.5%) & lowest in Ward 10 (5.5%). • Employment increased by 7 534 between 2001 & 2011. • Employment number 13.2% of Gert Sibande's employed. • Formal sector 71.4% & informal sector 16.8%.
47 | P a g e F I N A L I D P 2 0 1 5 / 1 6
3.2.4. LABOUR INDICATORS
Leading industries – agriculture (24.5%), trade (19.4%) & community services (13.8%).
Increasing role/share of mining & community services and decreasing role/share of agriculture & trade as employer.
Agriculture25%
Mining 5%
Manufacturing 10%
Utilities 3%
Construction 5%
Trade 21%
Transport2%
Finance 5%
Community services
11%
Private households
13%
2001
Agriculture24.5%
Mining 4.3%
Manufacturing 6.3%
Utilities 4.0%Construction
5.7%
Trade 19.4%
Transport2.7%
Finance 7.7%
Community services13.8%
Private households
11.5%
2013
48 | P a g e F I N A L I D P 2 0 1 5 / 1 6
3.2.5. EDUCATION INDICATORS
EDUCATION INDICATORS Trend Latest figure
Better (+) or worse (-) than Gert Sibande
Better (+) or worse (-) than province
Ranking: best (1) – worst (18)
2001 2011
Number of population 20+ with no schooling
11 157 7 836 6
Population 20+ with no schooling (%) 19.1% 11.2% (+) (13.3%) (+) (14.0%) 6
Population 20+ with matric & higher (%) 21.9% 35.8% (-) (37.3%) (-) (38.8%) 14
Functional literacy rate (%) 60.8% 76.5% (=) (76.5%) (-) (76.9%) 9
Citizens of 20+ and older with no schooling 11.2% - 7 836 people – more than 9% of Gert Sibande’s figure of 79 538 in 2011.
Population 20+ with matric & higher 35.8% - improving but lower than district and provincial levels.
Functional literacy rate (15 years+ with grade 7 qualifications or higher) improving but lower than provincial and district levels.
Matric pass rate at 78.5% in 2014 and improving slightly – ranked seventh in province and 30.1% university/degree admission rate.
Lekwa has 12 government funded ECD (Early Childhood Development) centres in the 2014/15 financial year.
49 | P a g e F I N A L I D P 2 0 1 5 / 1 6
3.2.6. YOUTH INDICATORS
Local municipal area
2011 2012 2013 2014
Lekwa
71.1% 77.1% 78.5% 84.7%
Dipaleseng 42.6% 66.4% 72.6% 81.4%
Msukaligwa 74.1% 70.9% 75.9% 80.6%
Chief Albert Luthuli 70.4% 71.1% 79.4% 80.1%
Govan Mbeki 71.3% 64.2% 77.1% 76.3%
Mkhondo 55.2% 68.3% 73.7% 70.9%
Dr Pixley Ka Isaka
Seme
46.0% 65.6% 68.1% 68.1%
50 | P a g e F I N A L I D P 2 0 1 5 / 1 6
3.2.7. EDUCATION INDICATORS
EDUCATION INDICATORS Trend Latest figure
Better (+) or worse (-) than Gert
Sibande
Better (+) or worse (-) than province
Ranking: best (1) – worst (18)
2001 2011
Number of population 20+ with no schooling
11 157 7 836 6
Population 20+ with no schooling (%) 19.1% 11.2% (+) (13.3%) (+) (14.0%) 6
Population 20+ with matric & higher (%) 21.9% 35.8% (-) (37.3%) (-) (38.8%) 14
Functional literacy rate (%) 60.8% 76.5% (=) (76.5%) (-) (76.9%) 9
Citizens of 20+ and older with no schooling 11.2% - 7 836 people – more than 9% of Gert Sibande’s figure of 79 538 in 2011.
Population 20+ with matric & higher 35.8% - improving but lower than district and provincial levels.
Functional literacy rate (15 years+ with grade 7 qualification or higher) improving but lower than provincial and district levels.
Matric pass rate at 78.5% in 2014 and improving slightly – ranked seventh in province and 30.1% university/degree admission rate.
Lekwa has 12 government funded ECD (Early Childhood Development) centres in the 2014/15 financial year.
51 | P a g e F I N A L I D P 2 0 1 5 / 1 6
3.2.8. HEALTH INDICATORS
HEALTH INDICATORS 2010 2011 2012 Ranking: best (1) – worst (18)
HIV prevalence rate - survey (pregnant women attending antenatal clinic 15-49 years old)
50.0% 32.5% 47.4% 16
TB cases 1 106 843 611 5
2011 2012 2013 Ranking: best (1) – worst (18)
Inpatient neo-natal death rate (per 1k) 8.8 11.4 9.1 7
PUBLIC HEALTH FACILITIES 2013
Number of clinics 5 Number of community health centres (CHC) 1 Number of hospitals 1
• HIV prevalence rate of pregnant women 47.4% - deteriorating between 2011 & 2012 and 3rd
worst (highest) among the 18 municipal areas according to Mpumalanga DoH.
• TB cases – improving between 2010 and 2012. • Inpatient neo-natal death rate (inpatient deaths within the first 28 days of life per 1 000 estimated live births) – improving to 9.1
between 2012 and 2013. • Clinics – 5 of Gert Sibande’s 56 clinics. • Community health centres – 1 of Gert Sibande’s 18 CHCs. • Hospitals – 1 of Gert Sibande’s 9 hospitals.
52 | P a g e F I N A L I D P 2 0 1 5 / 1 6
3.2.9. EDUCATION INDICATORS
BASIC SERVICE INFRASTRUCTURE
INDICATORS
Trend Latest figure Better (+) or worse
(-) than Gert
Sibande
Better (+) or worse (-)
than province
Ranking: best (1) –
worst (18) 2001 2011
% of households in informal dwellings 31.9% 23.9% (-) (16.8%) (-) (10.9%) 16
% of households with no toilets or with bucket system
26.9% 5.1% (+) (5.8%) (+) (7.2%) 6
% of households with connection to piped (tap) water: on site & off site
96.9% 97.6% (+) (91.1%) (+) (87.4%) 3
% of households with electricity for lighting
60.6% 88.6% (+) (83.4%) (+) (86.4%) 7
% of households with weekly municipal refuse removal
58.5% 82.2% (+) (63.6%) (+) (42.4%) 3
• All basic service indicators better than district and provincial levels with the exception of households with informal dwellings. • All indicators improving & ranked third highest with respect to households with connection to piped water on site & off site and weekly
municipal refuse removal.
• Blue Drop Report ranked 12th
- needs attention.
• According to Green Drop Report waste water services ranked 4th
in 2012.
53 | P a g e F I N A L I D P 2 0 1 5 / 1 6
3.2.10. HOUSING 2011
• Formal housing 73.6% - 22 858 households. • Traditional housing 1.8% – 570 households. • Informal housing 23.9% - 7 414 households. • Informal housing – highest/worst in Ward 15 (42.8%) & lowest/best in Ward 10 (0.6%).
Formal 73.6%
Traditional 1.8%
Informal 23.9% Other 0.7%
54 | P a g e F I N A L I D P 2 0 1 5 / 1 6
3.2.11. SANITATION 2011
• Flush/chemical toilets 86.6% - 26 899 households. • Pit latrines (6.4%) 1 980 households – pit toilets with ventilation 1.7% - 516 households & pit latrines without ventilation 4.7% - 1 465
households. • No toilets 4.1% - 1 280 households. • No toilets – highest/worst in Ward 13 (21.0%) and lowest/best in Ward 10 (0.1%).
No toilets 4.1%
Flush toilet/chemical toilets 86.6%
Pit toilet with ventilation1.7%
Pit toilet without ventilation 4.7%
Bucket toilet 1.0% Other 1.9%
55 | P a g e F I N A L I D P 2 0 1 5 / 1 6
3.2.12. PIPED WATER-2011
• Piped water in a dwelling or yard 90.6% - 28 145 households. • Piped water on a communal stand 7.1% – 2 195 households. • No access to piped water 2.4% - 731 households. • No access to piped water – highest/worst in Ward 13 (17.2%) & lowest/best in Ward 8 (0.2%).
Piped (tap) water inside dwelling or yard 90.6%
Piped (tap) water on a communal stand 7.1%
No access to piped water (tap) 2.4%
56 | P a g e F I N A L I D P 2 0 1 5 / 1 6
3.2.13. BLUE DROP PERFORMANCE
MUNICIPAL AREA 2010 2011 2012 Ranking: best (1) – worst (18)
Govan Mbeki 78.9 77.5 77.5 7 Dr Pixley Ka Isaka Seme 46.9 40.7 9 Dipaleseng 6.8 40.7 10
Lekwa 19.5 10.4 34.7 12 Msukaligwa 10.5 21.2 14 Chief Albert Luthuli 8.2 9.7 18.4 16 Mkhondo 28.6 5.0 11.3 18
3.2.14. GREEN DROP PERFORMANCE (RISK PROFILE AND LOG BY MUNICIPAL AREA)
MUNICIPAL AREA 2011 2012 Ranking: best (1) – worst (18)
Lekwa 88.9% 54.0% 4 Chief Albert Luthuli 87.0% 56.5% 5 Dr Pixley Ka Isaka Seme 78.9% 72.9% 10 Msukaligwa 90.7% 73.1% 11 Govan Mbeki 68.4% 83.2% 14 Mkhondo 91.7% 88.2% 15 Dipaleseng 72.2% 92.7% 16
57 | P a g e F I N A L I D P 2 0 1 5 / 1 6
3.2.14. BASIC SERVICE DELIVERY Household Services Index by Local municipal area, 2001 - 2011
0.5
8 0.6
5
0.6
5
0.6
2 0.6
8
0.7
0
0.7
0
0.6
8
0.7
2
0.7
7
0.7
7
0.7
2
0.7
1
0.7
3
0.7
4
0.7
1
0.7
5 0.8
4
0.7
0
0.7
0
0.7
1
0.7
1
0.7
2
0.7
4
0.7
6
0.7
9
0.8
1
0.8
1
0.8
2
0.8
3
0.8
3
0.8
4
0.8
4
0.8
5
0.8
7
0.8
9
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0H
ou
seh
old
se
rvic
es
ind
ex
Region2001 2011
58 | P a g e F I N A L I D P 2 0 1 5 / 1 6
3.2.15. HUMAN DEVELOPMENT INDEX
2001 2004 2009 2013 Ranking: best (1) - worst (18)
Govan Mbeki 0.56 0.57 0.60 0.65 3
Msukaligwa 0.49 0.50 0.54 0.61 7
Lekwa 0.50 0.51 0.54 0.61 8
Dipaleseng 0.44 0.46 0.51 0.59 11
Dr Pixley Ka Isaka Seme 0.42 0.43 0.48 0.56 12
Chief Albert Luthuli 0.42 0.42 0.46 0.55 13
Mkhondo 0.42 0.42 0.46 0.53 14
3.2.16. AVERAGE HOUSEHOLD INCOME
MUNICIPAL AREA 2001 2011 Ranking: highest (1) – lowest (18)
Lekwa R 38 113 R 88 440 5
Msukaligwa R 31 461 R 82 167 7
Dr Pixley Ka Isaka Seme R 23 399 R 64 990 11
Dipaleseng R 19 454 R 61 492 12
Mkhondo R 26 935 R 53 398 13
Chief Albert Luthuli R 22 832 R 48 790 14
59 | P a g e F I N A L I D P 2 0 1 5 / 1 6
3.2.17. HOUSEHOLD GOODS - 2011
Refrigerator Electric stove Computer Motor car Television Cellphone
Household goods 75.1% 81.4% 17.4% 30.2% 81.4% 91.7%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Pe
rce
nta
ge a
cce
ss
Household goods
60 | P a g e F I N A L I D P 2 0 1 5 / 1 6
3.2.18. HOUSEHOLD GOODS INDEX Household Goods Index by Local municipal area, 2001 - 2011
0.3
1 0.3
7
0.2
9
0.3
3 0.3
9
0.3
8
0.4
2
0.4
1 0.5
1
0.3
8
0.3
4
0.3
6 0.4
4
0.4
6
0.4
7
0.4
2
0.4
6 0.5
3
0.5
5 0.6
2
0.6
2
0.6
3
0.6
3
0.6
4
0.6
5
0.6
5
0.6
5
0.6
5
0.6
7
0.6
7
0.7
2
0.7
2
0.7
2
0.7
2
0.7
3
0.7
4
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1.0
Ho
use
ho
ld g
oo
ds
ind
ex
Region2001 2011
61 | P a g e F I N A L I D P 2 0 1 5 / 1 6
3.2.19. INEQUALITY AND POVERTY
INDICATORS Trend Latest figure Better (+) or worse (-) than Gert Sibande
Better (+) or worse (-) than
province
Ranking: best (1) – worst (18)
2001 2004 2009 2013
Share of population below lower-bound poverty line
47.7% 48.1% 41.7% 28.4% (+) 35.5% (+) 36.5% 6
Number of people below lower-bound poverty line
52 894 54 908 47 698 33 863 6
Bottom/poorest 40% share of income
8.0% 7.3% 8.0% 8.1% (+) 7.5% (+) 7.6% 12
• Share of population below lower-bound poverty line 28.8% in 2013 – improving and lower than district and provincial averages.
• 34 282 people below the lower-bound poverty line in 2013 – declining/improving and 6th
lowest among local municipalities. • Proportion of income earned by the bottom/poorest 40% of households in Lekwa was 8.0% in 2013 – less than NDP/Vision 2030 target
of 10% by 2030.
62 | P a g e F I N A L I D P 2 0 1 5 / 1 6
3.2.20. INCOME INEQUALITY
Bottom/poorest 40 % households’ share of income, 2001 - 2013 2001 2004 2009 2013 Ranking: best
(1) - worst (18)
Chief Albert Luthuli 8.4% 7.9% 9.8% 9.9% 5
Mkhondo 7.9% 7.6% 8.9% 9.1% 6
Dipaleseng 9.1% 7.4% 8.7% 8.8% 7
Lekwa 8.0% 7.3% 8.0% 8.0% 10
Msukaligwa 7.8% 6.9% 7.8% 7.9% 13
Dr Pixley Ka Isaka Seme 7.3% 6.6% 7.7% 7.9% 14
Govan Mbeki 6.1% 5.5% 6.0% 6.1% 18
63 | P a g e F I N A L I D P 2 0 1 5 / 1 6
3.2.21. ECONOMIC INDICATORS
ECONOMIC INDICATORS Trend 1996-2013
Forecast 2013-2018
Better (+) or worse (-)
than Gert Sibande
Better (+) or worse (-) than
province
Ranking: best (1) – worst (18)
GDP growth (%) 3.9% 1.9% (=) 1.9% (-) 2.2% 15
Trend Latest figure Ranking: best (1) – worst (18) 2001 2004 2009 2013
Contribution to Mpumalanga GVA (%)
3.9% 4.2% 3.7% 3.5% 7
• Expected to record 1.9% GDP growth per annum over the period 2013-2018 –higher than district but lower province – only 3.9% per annum historic growth for the period 1996-2013.
• Community services, mining & utilities should contribute the most to economic growth in the period 2013-2018. • GVA in 2013 – R8.1 billion at current prices and R3.8 billion at constant 2005 prices. • In 2013 Lekwa contributed 3.5% to Mpumalanga’s GVA – decreasing contribution since 2001.
64 | P a g e F I N A L I D P 2 0 1 5 / 1 6
ECONOMIC INDICATORS
Contribution by Local Municipal Areas to Gert Sibande’s industries (GVA constant 2005 prices)
INDUSTRY Chief Albert
Luthuli Msuka-ligwa Mkhondo Dr Pixley Ka
Isaka Seme Lekwa Dipale-seng Govan Mbeki Gert Sibande
Agriculture 12.2% 14.6% 21.2% 12.9% 23.2% 7.5% 8.4% 100.0%
Mining 2.9% 11.5% 3.3% 0.3% 15.2% 0.7% 66.1% 100.0%
Manufacturing 0.5% 0.8% 1.3% 0.2% 2.3% 0.2% 94.7% 100.0%
Utilities 5.2% 9.5% 1.6% 11.7% 44.7% 7.9% 19.4% 100.0%
Construction 8.0% 7.4% 4.6% 12.1% 10.8% 2.0% 55.1% 100.0%
Trade 7.7% 20.4% 8.1% 6.1% 10.9% 5.0% 41.8% 100.0%
Transport 6.4% 28.7% 8.8% 8.1% 11.8% 1.8% 34.4% 100.0%
Finance 8.2% 24.3% 9.5% 3.7% 9.8% 1.9% 42.6% 100.0%
Community services 15.6% 21.4% 9.4% 6.3% 17.5% 3.0% 26.7% 100.0%
Total 6.1% 13.4% 5.9% 4.1% 12.8% 2.4% 55.4% 100.0%
Lekwa contributed 12.8% to the Gert Sibande economy in 2013.
Utilities contributed 44.7% and agriculture 23.2% to the relevant district industries
65 | P a g e F I N A L I D P 2 0 1 5 / 1 6
ECONOMIC INDICATORS
In 2013, community services contributed 19.1% to the Lekwa economy followed by mining (25.4%) & utilities (17.0%).
Mining’s share/contribution declined and utilities, community services & finance increased
Agriculture8.1%
Mining 25.4%
Manufacturing, 4.5%
Utilities 17.0%
Construction2.5%
Trade 11.5%
Transport4.8%
Finance 7.1%
Community services19.1%
2013Agriculture
8.1%
Mining 25.4%
Manufacturing, 4.5%
Utilities 17.0%
Construction2.5%
Trade 11.5%
Transport4.8%
Finance 7.1%
Community services 19.1%
2013
66 | P a g e F I N A L I D P 2 0 1 5 / 1 6
3.2.22. INDUSTRY CONTRIBUTION & GROWTH
Provincial industry contribution and growth (constant 2010 prices), 2009-2013
Industry GVA percentage share 2013
Industry average annual growth, 2009-2013
Future growth 2013-2018
Agriculture 3.0% -0.7% Medium
Mining 25.4% 2.3% Low
Manufacturing 13.3% 2.1% Medium
Utilities 5.4% 0.6% Medium
Construction 3.3% 1.3% Medium
Trade 15.0% 2.2% Medium
Transport 6.0% 1.8% Medium
Finance 12.2% 2.2% Medium
Community services 16.4% 2.6% Medium
Total/GVA 100% 2.1% Medium
67 | P a g e F I N A L I D P 2 0 1 5 / 1 6
• Low = less than 2% • Medium = between 2% & 3.9% • High = 4.0 % and higher
3.2.23. TOURISM INDICATORS
TOURISM INDICATORS
Trend Latest Percentage share of
Gert Sibande
Percentage share of
Mpumalanga
Ranking: best (1) –
worst (18) 2001 2004 2009 2013
Number of tourist trips 34 378 51 697 61 900 44 957 4.9% 1.1% 16
Bed-nights 254 626 289 675 224 386 249 081 4.9% 1.1% 16
Total spent R million (current prices)
R86.4 R101.7 R134.3 R172.0 4.7% 1.0% 16
Total spent as a % of GDP (current prices)
3.0% 2.7% 2.1% 1.9% 18
• Number of tourist trips increasing since 2001 – 4.9% of Gert Sibande’s total and 1.1% per cent of the provincial total – ranked 16th
. • Total spent R172.0 million in 2013 – increasing trend since 2001 but third lowest in the province. • Total tourism spent equals only 1.9% of Lekwa’s GDP – decreasing trend since 2001 – ranked no 18.
68 | P a g e F I N A L I D P 2 0 1 5 / 1 6
TOURISM INDICATORS
Value & contribution of total tourism spend per region, 2013
Region Total tourism spend (R-million) Tourism spend as % of GDP (current prices)
Gert Sibande R3 660 5.3%
Chief Albert Luthuli R372 9.2%
Msukaligwa R357 4.1%
Mkhondo R263 6.6%
Dr Pixley Ka Isaka Seme R140 5.2%
Lekwa R172 1.9%
Dipaleseng R62 4.1%
Govan Mbeki R2 294 5.9%
3.2.24. NATIONAL TREASURY ALLOCATION, MPG EXPENDITURE & SASSA GRANTS
Local municipal area National Treasury allocation MPG expenditure 2013/14
SASSA grants 2013/14
Equitable share 2013/14
Infrastructure grant 2013/14
Chief Albert Luthuli R171.5 million R88.1 million R1 084.8 million R766.0 million
Msukaligwa R109.0 million R66.1 million R750.0 million R243.6 million
Mkhondo R110.7 million R69.1 million R788.5 million R371.2 million
Dr Pixley Ka Isaka Seme R85.6 million R30.6 million R417.3 million R131.6 million
Lekwa R81.4 million R43.5 million R539.5 million R167.8 million
Dipaleseng R46.1 million R20.6 million R148.3 million R81.9 million
Govan Mbeki R191.1 million R87.2 million R1 063.7 million R273.3 million
69 | P a g e F I N A L I D P 2 0 1 5 / 1 6
3.2.25. CRITICAL QUESTIONS – RESPONSE FROM MUNICIPALITY
1. INVESTMENT AND BUSINESS Responses
Poor Average Good
1.1 What is the perception by the public of the Municipality?
1.2 Investment-friendly environment in your municipal area?
1.3 What is the status of your investment strategy?
1.4 How is the relationship between Business & the Municipality?
1.5 Trusts between Business & the Municipality?
1.6 Municipality part of a Business Forum?
1.7 Economic, financial & political stability in the municipal area?
1.8 Performing according to the economic potential of your area?
70 | P a g e F I N A L I D P 2 0 1 5 / 1 6
2. PLANNING, IDP & BUDGET Responses
Poor Average Good
2.1 What is the status of cooperation/collaboration between the IDP Manager, CFO & MM?
2.2 How does your budget respond to your IDP?
2.3 How does your budget respond to the socio-economic challenges of your municipal area?
2.4 How does your budget respond to the triple challenges?
2.5 What is the status of cooperation/collaboration with Provincial Departments?
2.6 Spatial planning and development and in line with municipal SDF?
2.7 Long term & strategic plans at/in the Municipality?
2.8 What is the status of youth development strategies and plans at/in the Municipality?
71 | P a g e F I N A L I D P 2 0 1 5 / 1 6
3. LOCAL ECONOMIC DEVELOPMENT Responses
Poor Average Good
3.1 Functional (operational & viable) LED Unit/Manager?
3.2 What is the status of cooperation/collaboration between the LED Manager, MM and Mayor?
3.3 What is the status of the LED Forum?
3.4 What is the status of the development of a LED strategy?
3.5 LED strategy incorporates economic interventions from Provincial Departments?
3.6 What is the status of the implementation of the LED strategy?
3.7 Developing industries in the municipal area to increase economic growth and with a high labour absorption?
3.8 What is the status of Monitoring & Evaluation (M & E) with regard to LED in the Municipality?
72 | P a g e F I N A L I D P 2 0 1 5 / 1 6
3.2.26. CHALLENGES & RECOMMENDATIONS
Challenge Recommendation
High proportion of population aged 0-34 years (youth) Resources channelled to youth development – importance of skills development & creation of jobs
Importance of a job creation strategy targeting youth, women & people with disabilities
High HIV prevalence rate Importance of interventions by DoH to decrease the high HIV prevalence rate
Concern about high percentage of informal dwellings Faster roll-out of basic services and municipal infrastructure
Relatively high inequality Importance of poverty strategy – emphasis on job creation - impact positively on reduction of poverty & inequality
Relatively low economic growth Importance of attracting new businesses through an investment strategy & active Business/LED forum
High dependence/reliance on a few industries Identification of key industries/sectors to drive the economy sustainably into the future – role of tourism, manufacturing, trade, agriculture, mining etc.
Reduce unemployment, poverty and inequality (MEGDP & NDP) Effective and efficient government spending making an impact on the triple challenges
Budget must be in line with and respond to IDP & socio-economic challenges Municipality must work closely with COGTA, Finance and other role-players
73 | P a g e F I N A L I D P 2 0 1 5 / 1 6
3.2. WARD BASED ASSESSMENT IN TERMS COMMUNITY ISSUES The IDP/Budget consultation and public participation process only began in November 2014 and were completed in the very same November 2014, the Executive Mayor, MMC’s for different portfolios, together with the respective Ward Councillors concerned, PR Councillors who were available and Executive Managers as well as Divisional Managers visited all the 15 wards with the aim of emphasizing on the Government’s programmes, the importance of meeting the Millennium Targets, improvement in service delivery and ensuring better life for all residents within Lekwa Local Municipality. Community members who attended the consultations highlighted the following development and infrastructural challenges confronting them per ward:
74 | P a g e F I N A L I D P 2 0 1 5 / 1 6
IDP/BUDGET REVIEW COMMUNITY CONSULTATION AS PER WARD BASED ASSESSMENT FROM THE 09/11/2014 TO THE 03/12/2014 FOR FINANCIAL YEAR 2015/2016
ISSUES RAISED
PROGRESS MADE / ACHIEVEMENT IF NOT ACHIEVED (REASONS)
CORRECTIVE MEASURE
1 WARD 1 CLLR. MS KHUMALO-RADEBE
Access road to Razmattaz Achieved, Blading of roads completed in Mngomezulu, Sepingo, Morati, Thusi , Sigegede, Qwugga and Robbersdrift to Razmatas.
High-mast lights in Seboloka and Sebiloane streets;
Not Achieved, One high mast light installed and functional at Sebiloane High mast in Seboloka street, to be attended to during future grant funding
Future grants to be utilized in installation of high mast in Seboloka street.
Paving of Gwembe street Not Achieved,
Reprioritisation process of basic services
Keep it in the ward priority list
Naming and renaming of streets;
Not Achieved Street names not approved
Renaming process is continuous
Construction of storm-water structures
Not Achieved, due to the reprioritisation process of basic services such as water, sanitation and electricity.,
Reprioritisation process of basic services
Keep it in the ward priority list
RDP Houses 41 RDP Units Built
.
Title deeds Not Achieved Await the extension of scope for the newly appointed conveyancer
Scope to be extended to the Conveyancer
Gravelling of roads Achieved, I km bladed at Isipingo
Toilets and water in Extension 2
Not Achieved Previous Resolution on provision of basic
Council Resolution A-121-17/07/2014
75 | P a g e F I N A L I D P 2 0 1 5 / 1 6
municipal services in informal settlement.
NUSP
Community halls Not Achieved Reprioritisation process of basic services
Keep it in the List
Indigent 225
Outstanding Debts R18 658 753
Cross-cutting projects Standerton Waste Water Treatment Works has been completed for R16.8 million
Replacement of AC pipes with uPVC pipes in Lekwa LM for R6.252 Million has been completed
Construction and upgrade of storm water network phase 3 in Ward 2,3 & 4 is completed for R1.2 million
Water conservation and Demand management
Construction of a 10 Mega litre Reservoir supplying (Ward 1,5,7,15)
Refurbishment of Waste Water Treatment Works
END OF WARD ONE
2 WARD TWO (2) CLLR.LBR DLAMINI (SPEAKER)
Paving of roads leading to school such Thobelani and Jandrell
Achieved
Construction of storm-water structures
Achieved in Sivunjatshe, Dladla and Sebiloane street storm water structures constructed
Upgrading of electricity substations
Not Achieved
Mini sub to be installed by January 2015
Receiving sub to be upgraded by the end of May 2015
76 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Free application of title deeds
Achieved, 219 Title deeds delivered
Naming of streets Achieved, Some streets has been successfully renamed and others were not approved e.g. Sibongile Radebe, Doctor Lephoto, December Mphuthi and Sobukwe were all successful
Renaming process is continuous
Construction of speed humps
Achieved, Two (2) Speed humps were constructed Gatsheni and Ndlovu Streets
Provision of Grazing fields Not Achieved, a study to be conducted a study to be conducted
RDP Houses 130 RDP Units built
.
Recreational facilities (Swimming pool)
Not Achieved, Swimming Pool- Project still not completed due to required additional funds
Keep it in the List
Installation of High-mast lights
Achieved, 1 at Lindelanga school
Indigent 245
Debt Outstanding R17 251 748
Cross-cutting projects Standerton Waste Water Treatment Works has been completed for R16.8 million
Replacement of AC pipes with uPVC pipes in Lekwa LM for R6.252 Million has been completed
Construction and upgrade of storm water network phase 3 in Ward 2,3 & 4 is completed for R1.2 million
Water conservation and Demand management
Refurbishment of Waste Water Treatment Works
END OF WARD TWO
3 WARD THREE (3) CLLR. M M NTULI
Upgrading of the Old Achieved
77 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Standerkop Reservoir
Gravelling of streets at Mahala Park
Achieved, 1.4 km gravelled at Mahala Park
Paving of roads Achieved, Wolmarans Street paved
RDP Houses Achieved, 542 Units RDP Houses built
High masts lights next to the Cemetery and Shovovo
Achieved, 2 High- high lights masts were installed but to cover greater community. Installed at 6944/25 and 3736 Ext.1
Sports, Recreational facilities and Multipurpose Centre
Achieved, sporting Facilities (Sakhile Netball Courts, Mahala Park Netball, Basketball, Sakhiile Swimming Pool and Tennis Court completed for R3.3 million
Title deeds Achieved, 279 Title Deeds delivered
Construction and upgrade of storm water network phase 3
Achieved, construction and upgrade of storm water network phase 3 in Ward 2,3 & 4 is completed for R1.2 million
Indigents 152
Outstanding Debts R84 38049
Cross-cutting projects Standerton Waste Water Treatment Works has been completed for R16.8 million
Replacement of AC pipes with uPVC pipes in Lekwa LM for R6.252 Million has been completed
Completion of the Rising Main Line has been completed for R2.25 million
Construction and upgrade of storm water network phase 3 in Ward 2,3 & 4 is completed for R1.2 million
Water conservation and Demand management
78 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Refurbishment of Waste Water Treatment Works
END OF WARD THREE
4 WARD FOUR (4) CLLR. L VAN RENSBURG
Gravelling of roads; Not Achieved, due to the reprioritisation process of basic services such as water, sanitation and electricity.
Keep it in the ward list
Storm-water drainage in Azalea, Kosmos Street;
Not Achieved, due to the reprioritisation process of basic services such as water, sanitation and electricity.
Keep it in the ward list
Gravelling and paving of roads in the new established area (Stan-west next to Osman Raydan);
Not Achieved, but we have bladed the street Keep it in the ward list
Streetlights to be converted into High mast lights
Not Achieved, New high-mast installed at 6947/15 Maintenance and repair is done on streetlights with installing cost effective LED fittings.
Keep it in the ward list
Building of RDP houses. 174 RDP have been built
Construction of sidewalks Not Achieved Reprioritisation process of basic services
Keep it in the ward list
Indigent 40
Debt Outstanding R18 248 129
Cross-cutting projects Standerton Waste Water Treatment Works has been completed
79 | P a g e F I N A L I D P 2 0 1 5 / 1 6
for R16.8 million
Replacement of AC pipes with uPVC pipes in Lekwa LM for R6.252 Million has been completed
Completion of the Rising Main Line has been completed for R2.25 million
Construction and upgrade of storm water network phase 3 in Ward 2,3 & 4 is completed for R1.2 million
Water conservation and Demand management
Refurbishment of Waste Water Treatment Works
END OF WARD FOUR
5 WARD FOUR (5) CLLR. JB MOTHOPENG
Paving of Mfuphi ,Ngubeni and Selepe street
Not Achieved, due to the reprioritisation process of basic services such as water, sanitation and electricity.
Need an obsolete road maintenance plant for hire
Formalization of Phalama and Mandela Camp informal nature
Not Achieved, municipality is participating in a NUSP PROGRAMME where councillors are active participants in terms of Council resolution:
Previous Resolution on provision of basic municipal services in informal settlement.
Council Resolution A-121-17/07/2014 NUSP
Electricity and Toilets in Mandela Camp
Not Achieved, municipality is participating in a NUSP PROGRAMME where councillors are active participants in terms of Council resolution:
Re-gravelling of Streets in Phalama
Achieved, Phalama has been Bladed
Youth development initiative
Achieved, work integrated Learning programme, LED initiatives Bursary Programme, Cooperatives and SMME’s Learner ships programme: Unemployed Youth
Indigent 357
Debts Outstanding R28 131,928
80 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Cross-cutting projects Standerton Waste Water Treatment Works has been completed for R16.8 million
Replacement of AC pipes with uPVC pipes in Lekwa LM for R6.252 Million has been completed
Completion of the Rising Main Line has been completed for R2.25 million
Construction and upgrade of storm water network phase 3 in Ward 2,3 & 4 is completed for R1.2 million
END OF WARD FIVE
6 WARD 6 CLLR.ENK SHABANGU
Request for RDP Houses
87 Stand-alone RDP houses built 34 CRU Built Hostel project complete
Paving ring road Ext 1 Not Achieved, paving of roads for now has been stalled due to the reprioritisation process of basic services such as water, sanitation and electricity.
Keep it in ward priority list
Waste Management Project
Not Achieved Not in the LED Strategy To be included in LED project list
Available land for live stock
Not Achieved Study to be conducted Keep it in ward priority list
Paving off all roads that goes through churches and schools
Not Achieved Reprioritisation process of basic services
Keep it in ward priority list
Storm water drainage at Killarney
Not achieved Keep it in ward priority list
Fencing for Madi School Not achieved, referred to the Department of Education Not a municipal function, but a DoE
Sector department to be invited to IDP Meeting
Hostel project to be completed
Achieved, Phase 2 of the Sakhile Hostels is completed. Occupation of the Community Residential Units The Council established a
. .
81 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Select Adhoc Committee to look into matter of the institutional arrangements as well as the method of occupation of these units.
Paving of sidewalks at Palmer, Mncube, and Hlongwane Street
Not Achieved, sidewalks have been paved, Palmer Street and Hlongwane drive; Mncube drive is still outstanding
Palmer Street and Hlongwane drive; Mncube drive is still outstanding
Keep it in ward priority list
High-mast lights at Mtshali Street
Achieved, high-mast light in Mtshali Street has been installed;
Sport and Recreational facilities next to Sakhile Hall and parking bays
Achieved, Sport and Recreational facilities next to Sakhile Hall and parking bays were successfully constructed and completed.
Keep it the Ward
Indigent 201
Debt outstanding R18 980 400
Cross-cutting projects Standerton Waste Water Treatment Works has been completed for R16.8 million
Replacement of AC pipes with uPVC pipes in Lekwa LM for R6.252 Million has been completed
Completion of the Rising Main Line has been completed for R2.25 million
Construction and upgrade of storm water network phase 3 in Ward 2,3 & 4 is completed for R1.2 million
Water conservation and Demand management
Refurbishment of Waste Water Treatment Works
END OF WARD SIX
7 WARD 7 CLLR.JP MASUKU
Building of RDP houses including Ext 7
Achieved, 66 RDP Houses built and 100 more units to be built
82 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Available site for training Centre of senior citizen at Old Khunjuliwe
Not achieved Building demolished Keep it in the ward priority list
Creation of sports facilities
Not Achieved,
Reprioritisation process of basic services
Engage Sector department of Sport, Arts & Culture
Requesting Free title deed
Achieved, Only 55 title deeds received for ward 7
Term of the conveyancer expired
New scope of a new Conveyancer to be agreed upon
Building of a youth Centre with library
Not Achieved, Library is not the municipal function but it has been referred to the relevant sector department Art, Sports and Culture Department
Sports and culture Dept. to be invited to IDP meeting
Creation of a passage to buffer zones
Not Achieved,
Owner has been approached and did not co-operated
Formal legal proceedings will commence soon
Highlight mast 2 High-mast lights were successfully installed at 714 Mahala Park and 6912 Ext.7
Other Projects Standerton Waste Water Treatment Works has been completed for R16.8 million
Replacement of AC pipes with uPVC pipes in Lekwa LM for R6.252 Million has been completed
Completion of the Rising Main Line has been completed for R2.25 million
Construction and upgrade of storm water network phase 3 in Ward 2,3 & 4 is completed for R1.2 million
83 | P a g e F I N A L I D P 2 0 1 5 / 1 6
R23 SANRAL project
Water conservation and Demand management
Refurbishment of Waste Water Treatment Works
Indigents 39
Outstanding Debts R5 882 948
END OF WARD SEVEN
8 WARD 8 CLLR. VAN DER WATH
Closing of open manholes;
Achieved, there are no more open manhole
Security on playground (installation of Palisades);
Not Achieved Reprioritisation process of basic services
Keep in the ward list
Closing of escape routes (especially Secunda road);
Not Achieved Public works to be engaged in order to identify the culprit (Grader driver)
Request help from SANRAL with regards to concrete slaps.
Landfill side that has become hazardous to the community;
Achieved, New cell is completed and the Old cell will be rehabilitated
84 | P a g e F I N A L I D P 2 0 1 5 / 1 6
No proper notice issued to residence before electricity cuts-off;
Achieved, it is provided for in the monthly consumer accounts
Construction of a English medium school
Achieved, Khunjuliwe High School built in Ward 9 which is relatively located next to ward 8
Indigent 8
Debt outstanding R24 260 694
Cross-cutting projects Standerton Waste Water Treatment Works has been completed for R16.8 million
Replacement of AC pipes with uPVC pipes in Lekwa LM for R6.252 Million has been completed
Completion of the Rising Main Line has been completed for R2.25 million
Water conservation and Demand management
Refurbishment of Waste Water Treatment Works
END OF WARD EIGHT
9 WARD 9 CLLR MR TSHABALALA
Water in Rural Areas
Council has provided 6 Boreholes, 70 VIP
Electricity and High mast lights
Achieved, Electricity connections to 7 farmworker houses (JWS-Klippoortjie) Still 22 farmworker houses to be done under the DoE funding project.
Employment Opportunities: Bokoro Bricks project
Not achieved, DEDET matter DEDET matter Sector department to be invited to IDP Meeting
Permanent Clinic in Ward 9
Not achieved, Sector matter Sector matter Sector department to be invited to IDP Meeting
85 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Gravelling of Roads in Rural Areas
Not achieved, Public works matter Public works matter Sector department to be invited to IDP Meeting
RDP Houses in Rural Areas
Achieved, Standerton Ext 8 RDP Houses allocated 500
Land for RDP Houses in Rural ward
Not achieved, DARDLA matter Sector department to be invited to IDP Meeting
Mobile Clinics to adhere to visiting schedule
Not achieved, matter has been referred to the health department to attend to
Health department matter
Sector department to be invited to IDP Meeting
VIP toilets 70 VIP toilets has been provided
Grazing land Not achieved, Sector matter Study to be conducted to determine the demand
Sector department to be invited to IDP Meeting
Cross-cutting projects in Rural Wards
Installation of sanitation services in rural(farm) areas for R3 million
Installation of boreholes in rural(farm) areas of Lekwa LM for R3 million
R23 SANRAL project
Wolvenfontein 1 windmill
Bierman 1 windmill
Holmendene 1 windmill
Ellme tree 1 windmill
Uys farm 1 windmill
86 | P a g e F I N A L I D P 2 0 1 5 / 1 6
END OF WARD NINE
10 WARD 10 CLLR. PT SCHNETLER
Infrastructure maintenance for water, sanitation, electricity and municipal roads
Achieved, Water, sanitation -Refurbishment of Water and Wastewater treatment plant completed Electricity -Upgrading CA –Substation – Contractor appointed Sanitation -Refurbishment of Waste Water Treatment Works
Improving the capacity of sewer treatment plant or works
Achieved, refurbishment Water and Wastewater treatment plant completed Phase 2: Consultant has been appointed
Bridging of electricity and non-functionality of Street lights
Not achieved, Appointment of a contractor to install smart meters
Smart meters contractor High masts lights Maintain street lights
Roads decaying Walter Sisulu Mandela drive and Borman and overall potholes in town
Achieved, roads: Walter Sisulu drive Beyers Naude,Bauman, Mbonani Mayisela, Krogh,Berg, Van Backstroom, Schwickard ,Lang and Van Veen Streets has been completed
High need for more medical practitioners in Standerton Hospital
Not achieved. It’s a sector department matter Sector department matter
Sector dept. to be invited to the IDP Consultation
87 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Other Projects Standerton Waste Water Treatment Works has been completed for R16.8 million
Replacement of AC pipes with uPVC pipes in Lekwa LM for R6.252 Million has been completed
Completion of the Rising Main Line has been completed for R2.25 million
Construction and upgrade of storm water network phase 3 in Ward 2,3 & 4 is completed for R1.2 million
Installation of raw water turbine pumping units for R1.9 million completed
Water conservation and Demand management
Refurbishment of Waste Water Treatment Works
Indigents 10
Debts outstanding R547 763
END OF WARD TEN
11 WARD 11 CLLR. AS NGWENYA
Highlights mast
Achieved 4 High mast lights installed
Building of a clinic
Achieved, Clinic is 100% complete
Building of a community hall
Achieved, Construction of the community hall is complete.
Building of a police station or mobile SAPS at the taxi rank
Not achieved It’s a Sector department function
Sector dept. to be invited to the IDP Consultation
88 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Building of a bridge on the Santa Road
Achieved, bridge on the Santa Road completed
Building of a Primary and High School
Achieved, Shukuma primary has been built with all the related sports facilities Site for High school is provided with ERF No:50141
Sports facilities Achieved, Shukuma primary houses most of the sport facilities
Upgrading of receiving subs-station feeding Rooikoppen
Not achieved Upgrading of receiving subs-station feeding Rooikoppen adjudication underway
Finalize the procurement process
Paving of roads Achieved, Bus/Taxi routes,1.1 km has been paved
Construction of speed humps
Achieved, (5) speed humps have been installed on the Bus/Taxi Routes
Title deeds Achieved,1200 title deeds to be delivered
Water Conservation and Demand management
To benefit all the urban wards. Water Conservation and Demand management Rectification of sewer network in Ward 11
Indigent 375
Debts outstanding R22 264226
Cross-cutting projects Standerton Waste Water Treatment Works has been completed for R16.8 million
Replacement of AC pipes with uPVC pipes in Lekwa LM for R6.252 Million has been completed
Completion of the Rising Main Line has been completed for R2.25 million
Construction and upgrade of storm water network phase 3 in Ward 2,3 & 4 is completed for R1.2 million
89 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Installation of raw water turbine pumping units for R1.9 million completed
END OF WARD ELEVEN
12 WARD 12 CLLR. SS MOSIA
Storm-water drainage in rural areas;
Not achieved
Gravelling of roads in rural areas;
Not Achieved, Public Works matter Public Works matter Sector dept. to be invited to the IDP Consultation
RDP Houses in Bloukop
Not Achieved, DHS to enter into MOU with the farmers. DHS to enter into MOU with the farmers
High-mast Light; Achieved, High mast lights were installed but not in all areas of the RDP section
Paving of roads RDP, Ext1;
Not Achieved, due to prioritization of water, sanitation and electricity Due to prioritization of water, sanitation and electricity
Re-opening of the filling station – Thuthukani;
Not achieved, It’s a private property that belongs to Eskom, will depend on the handing over of Thuthukani to the municipality and the municipality has no authoritY
Selling of municipal sites (Ward 12);
Not achieved The municipality to advertise sites for sale via section 14 of the
90 | P a g e F I N A L I D P 2 0 1 5 / 1 6
MFMA and also awaiting land audit for entire Municipality
Opening of cemeteries Not achieved, Municipality to facilitate the opening of the cemetery once the handing over of Thuthukani to the municipality and the municipality has been done as this has costs implication.
Electricity in all rural areas
Not achieved, Municipality has no authority to electrify all the rural areas as most of these farms belong under Eskom.
Eskom to be invited to the IDP Consultation
LED projects LED Forum as the LED Unit has just began to function
Community Hall There is a Multi-purpose hall in Thuthukani that belong to Eskom for now, but in future once the handing over of Thuthukani to the municipality and the municipality has been done it will belong to the municipality
Cross-cutting projects in rural wards
Installation of High mast lights in Lekwa for R2 Million is completed 1,2,3,4,5,6,7,10,11,12,14
Installation of sanitation services in rural(farm) areas for R3 Million in 9,12 & 13
Installation of boreholes in rural(farm) areas of Lekwa LM for R3 Million in 9,12 & 13
END OF WARD 12
13 WARD 13 CLLR. NZE SITSHONI
Farm owner donated land and municipality failed to build houses (Kroomdraai)
Not achieved DoHS has not entered into Service level agreement with the farm owners
Sector dept. to be invited to the IDP Consultation
Electrification of farms
Electrify Households as follows: 3 HH- V8, 8HH -V22, 5HH- V38 Houses M Farmers or Occupants refusal to move
Apply to INEP for additional houses to be electrified
91 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Farm purchased by Government and unknown person allocated by Department of Land Affairs (Welmoed farm)
Not achieved, Nothing was done on the municipal side DARLDLA function Sector dept. to be invited to the IDP Consultation
Transnet Houses to be re-allocated to members of community
Not achieved, It’s a private property and the municipality has no authority
Transnet to be invited to the IDP Consultation
Scarcity of a Mobile clinic
Not achieved Not a municipal function and is referred to Department of Health
DoH to be invited to the IDP Consultation
Road access (road to be gravelled)
Not achieved Due to reprioritization of water, sanitation and electricity
Request jojo tank (Brakfontein)
Achieved
Provision of resources for Crèche
Not achieved matter has been referred to the Department of education
DoE to be invited to the IDP Consultation
Legalization of security of ownership, Erzak
Not Achieved It’s a private property Fast track the negotiations between Early-bird and employees
Municipal Satellite Office
Not achieved municipality does not render any services that need pay for
Stands for early-bird people, farms
Sites are available in Ext 8 Early bird employees have been encouraged to register for Ext 8
92 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Upgrading of Electricity sub-station in early-bird farm
It’s a private property that belongs to Early bird farm and the municipality has no authority
Highl mast light (kwa-Ben and Tonker Farm
Not Achieved
Indigent ZERO
Debt outstanding R16 576 000
Boreholes Ebenezer Farm 1 windmill installed Darling Farm 1 windmill Emajokobeni 1 windmill Kwakruks 1 windmill KwaManqindi 1 handpump Kwambube 1 windmill
Sanitation facilities 70 sanitation toilets constructed
END OF WARD 13
14 WARD 14 CLLR. MG MAKHANYE
Municipal sites for residential, business and church be sub-divided and allocated
The municipality to advertise sites for sale via section 14 of the MFMA and also awaiting land audit for entire Municipality
No Policy No Land Audit
Develop a Policy Conduct Land Audit
Construction of storm water
Achieved Construction of storm water in Morgenzon is at 100% complete.
N/A
93 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Construction of a new community hall
Not achieved, due to the reprioritisation process of basic services such as water, sanitation and electricity.
Due to the reprioritisation process of basic services such as water, sanitation and electricity
Provide maintenance
Extension and renovation of a clinic with 24 hours doctors service
Not Achieved, Clinic under construction in Morgenzon by DH
Clinic under construction in Morgenzon by DH
Ambulance has been provided for 24hrs service
Paving of a ring-road Achieved ,Completed in 2012 financial year
Achieved Study to be conducted on how the Road could be lowered in order to avert flooding
Building of school for the disabled
Not Achieved A site has been allocated by Municipality and New Denmark has committed to build a school/Centre for the disabled: 490 Ext 3
Awaiting for a response from New Denmark
Graveling and paving of roads
Not Achieved Commence 1st of March 2015 for Gravelling of 9 KM of roads in Morgenzon
1st March 2015
Ext 1 road to have access from entrance to exit
Not Achieved Not permissible in terms of the layout plan, currently there is an informal exit poi
Refurbishment of a Comb court for Basketball and netball
Achieved, Refurbishment of a Comb court for Basketball and netball completed
Sports and recreational (PARKS) facilities in
Achieved, sport and recreational facilities completed.
94 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Sivukile
Cemeteries to be fenced and toilets to be erected
Not achieved, due to financial constraints Due to financial constraints
Keep in Ward list of issues
Grazing Land for livestock Achieved, two (2) farms available for grazing purposes. Study to be conducted to ascertain the number livestock and extent of the farms available for use.
Available land for agricultural and resources
Not Achieved; The DHS has committed to implement the Agri-village project on behalf of the Municipality
Monthly follow-ups will be made and other projects
Indigents 364
Outstanding debts R39329 733
END OF WARD FOURTEEN
15 WARD 15 CLLR. N TSHABALALA
The Multi-purpose community hall
Achieved, Construction of Multi-Purpose Community Hall for Sakhile Ward 15 at R8 Million is completed
3.5km of all roads to be gravelled;
Achieved, 3.5km of all roads has been completed
Request for the installation of at least two
Achieved, 2 high mast lights installed at 6031 and 5125 Ext. 6
95 | P a g e F I N A L I D P 2 0 1 5 / 1 6
High-mast lights
Paving at Vodacom Street Not achieved Due to the reprioritisation process of basic services such as water, sanitation and electricity
Keep it in the Ward list
Request for RDP Houses Achieved, more still have to be built depending on DoHS allocation
V-drain /Storm-water in all Streets
Achieved, 120 meters storm-water network phase 1-2_ the project is completed, benefit both ward 15 & 7.
Request for speed humps Achieved, Four (4) speed humps constructed on the Paved Roads
Building of a youth Centre with library
Not achieved Due to prioritization of water, sanitation and electricity etc
Keep it in the Ward list
Incorrect billing systems for rates and taxes accounts
Not achieved it is provided for in the monthly consumer accounts
Keep it in the Ward list
Paving of the main road from Judy’s place up to the end.
Not Achieved due to prioritization of water, sanitation and electricity etc.
Leakages of water meters Not achieved 260 meters fixed,340 outstanding due to the 76 meters stolen and water supply disruptions and limited resources
New evaluation roll Water demand management
Sport Facilities (Soccer-field)
Not achieved, Ward is able to share with ward 3 for Netball, Basketball, Tennis and Soccer facilities and also share with other neighbouring wards
Due to the reprioritisation process
96 | P a g e F I N A L I D P 2 0 1 5 / 1 6
of basic services such as water, sanitation and electricity
Indigents 80
Outstanding Debts R36 157 591
Cross- cutting projects Standerton Waste Water Treatment Works has been completed for R16.8 million
Replacement of AC pipes with uPVC pipes in Lekwa LM for R6.252 Million has been completed
Completion of the Rising Main Line has been completed for R2.25 million
Construction and upgrade of storm water network phase 3 in Ward 2,3 & 4 is completed for R1.2 million
Installation of raw water turbine pumping units for R1.9 million completed
Water conservation and Demand management
Refurbishment of Waste Water Treatment Works
END OF WARD FIFTEEN
97 | P a g e F I N A L I D P 2 0 1 5 / 1 6
4. CHAPTER 4: PERFOMANCE MANAGEMENT SYSTEM
4.1. INTRODUCTION The main objective of the IDP is being for the Municipality to address service delivery issues and in particular to address and eradicate the inequalities of the past, focusing primarily on previously disadvantaged areas.
The key objective of the Municipality’s IDP is therefore to create a developmental state and to realise a developmental local government where the Municipality actively intervenes in raising the quality of life of its citizens through creating a sustainable environment and ensuring the deployment of resources to realize the objectives it has set for itself.
The objectives to be set are adapted from the MSA which requires that the Performance Management System as adopted by the Municipality, represent the cycle and processes of performance planning, monitoring, measurement, review, reporting and improvement. The objective of institutionalising a performance management system beyond legislative compliance requirements is to:
• Facilitate increased accountability • Facilitate learning and improvement • Provide early warning signals • Facilitate decision-making processes
4.2 POLICY AND LEGISLATIVE FRAMEWORK The Performance Management System is located within a legislative and policy framework and is influenced by the following:
• The White Paper on Local Government (1998) • The Municipal Systems Act (2000) • The Municipal Planning and Performance Management Regulations (2001)
4.2.1. The White Paper on Local Government 1988
The White Paper on Local Government (1998) nationally introduced performance management in local government as a tool towards developmental local government. The White Paper indicates that involving communities in developing municipal key performance indicators increases the accountability of the municipality to its citizens. Some communities may prioritize the amount of time it takes a municipality to answer a query, others will prioritize the cleanliness of an area or the provision of water to a certain number of households. Whatever the priorities, by involving communities in setting key performance indicators and reporting back to communities on performance, accountability is increased and public trust in the system of local government can be enhanced.
98 | P a g e F I N A L I D P 2 0 1 5 / 1 6
4.2.2. BATHO PELE (1998)
The word Batho Pele is a Sotho word, which means people first. The White Paper on transforming public service delivery put forward eight (8) principles, which has been extended to 12, for good public service whose priority is putting people first, i.e. Batho Pele. The Batho Pele principles are:
• Consultation • Service standards • Access • Courtesy • Access • Information • Openness and transparency • Redress • Value for Money • Encourage innovation and rewarding excellence • Service delivery impact • Leadership and strategic direction
4.2.3. THE MUNICIPAL SYSTEMS ACT (2000)
This Act requires of all municipalities to:
• Develop a performance management system • Set targets, monitor and review performance based on indicators linked to their
Integrated Development Plan • Publish an annual report on performance for councillors, staff, the public and other
spheres of government. • Incorporate and report on a set of general indicators prescribed nationally by the
minister responsible for local government. • Conduct an internal audit on performance before tabling such reports. • Involve the community in setting indicators and targets and reviewing municipal
performance. • Have their annual report on performance audited by the Auditor-General.
4.2.4. MUNICIPAL PLANNING AND PERFORMANCE MANAGEMENT REGULATIONS (2001) The Municipal Planning and Performance Regulations (2001) is a set of regulations which clarifies the process of how the Performance Management System and Integrated Development Plan processes should be conducted and integrated. It provides that a municipality performance management system must entail a framework that describes and represents how the municipality’s cycle and processes of performance planning, monitoring, measurement, review, reporting and improvement will be conducted, organised and managed, including the roles of different stakeholders.
4.3. PRINCIPLES GOVERNING THE PERFORMANCE MANAGEMENT SYSTEM
In having developed a performance management system, the Municipality has been guided by the following principles:
a) Both development and implementation of the system must be driven by Council and the executive management
99 | P a g e F I N A L I D P 2 0 1 5 / 1 6
b) The system must be owned by all relevant stakeholders within the municipality and be supported
c) Communication must occur at all levels on an on-going basis d) The value of PMS must be understood by all role-players and stakeholders e) The system must place the community at the centre of local government processes f) The system must be developmental and not punitive g) The system must be developed and implemented within the available capacity and
resources of the municipality h) The system should align to other municipal initiatives, systems and processes i) The system must provide learning and growth opportunities through coaching and
review processes. PMS must be implemented in such a manner that it:
I. Is developmental and not punitive in nature as employees will be provided with career opportunities and be allowed space to be creative and innovative in performing and improving their work;
II. Provides a clear and detailed framework for: • reaching agreement on performance contracts • clear KPIs, targets and standards that are agreed upon • a balance between organisational needs and employee rights
III. Allows for joint responsibility and accountability based on mutual trust and respect IV. Is cost-effective and practical while enhancing improvement on quality V. Is applied consistently and documents and records both formal and informal feedback
VI. Is applied equitably and fairly VII. Allows for honesty and transparency in its application
VIII. Provides clear linkages between performance, recognition and reward IX. Provides a clear guide on dealing with poor or non-performance X. Focuses on critical work activities
4.4. LEKWA’S PERFORMANCE MANAGEMENT SYSTEM
Lekwa’s Performance Management System has a detailed process plan in respect of specific responsibilities and time frames as determined in line with the Regulations. Lekwa’s process of managing performance will involve the following core basic components of which each of the processes can be explained as follows:
Performance Planning ensures that the strategic direction of the Municipality more explicitly informs and aligns the IDP with all planning activities and resource decisions. This is the stage where Key Performance Areas and Key Performance Indicators are designed to address the IDP objectives, national policy and targets are set.
Performance Measuring and Monitoring is an ongoing process to determine whether performance targets have been met, exceeded or not met. Projections can also be made during the year as to whether the final target and future targets will be met. It occurs during key points in a process – for example, on a quarterly, midyear and annual basis.
Performance Evaluation and Review analyses why there is under-performance or what the factors were that allowed good performance in a particular area. Where targets have not been met, the reasons for this must be examined and corrective action recommended. Evidence to support the status is also reviewed at this stage. An additional component is the review of the indicators to determine if they are feasible and are measuring the key areas appropriately.
100 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Performance Reporting entails regular reporting to management, the performance audit committee, council and the public.
Performance Auditing and Improvement is a key element of the monitoring and evaluation process. This involves verifying that the measurement mechanisms are accurate and that proper procedures are followed to evaluate and improve performance. According to section 45, of the Systems Act, results of performance measurement must be audited quarterly as part of the Municipality’s internal auditing process and annually by the Auditor-General. The Municipality have therefore established frameworks and structures to evaluate the effectiveness of the Municipality’s internal performance measurement control systems. Areas of weak performance identified at year-end must be addressed during the following year’s planning phase.
The following diagram outlines the process flow in respect of how planning, monitoring, measurement, review, reporting, auditing and improvement is conducted, organised and managed.
The Performance Management Cycle
PERFORMANCE MANAGEMENT
CYCLE
Performance Planning
(March-June)
Performance Monitoring and Measurement
(Monthly / Quarterly)
Performance Review
(Quarterly & Annually)
Performance Reporting (Monthly / Quarterly / Midyear / Annually)
Perfomance auditing and
improvement (Quarterly /Annually)
101 | P a g e F I N A L I D P 2 0 1 5 / 1 6
4.5. STAKEHOLDERS AND THE ROLE THEY PLAY IN PERFORMANCE MANAGEMENT SYSTEM These stakeholders are the responsible bodies that will see to the driving of the performance management processes within the Municipality:
COUNCIL MAYORAL COMMITTEE PORTFOLIO
HEADS
MUNICIPAL MANAGER
& HEADS OF
DEPARTMENT
AUDIT COMMITTEE
CITIZENS AND COMMUNITIES
• Development of a long term vision
• Develop strategies
to achieve Municipality’s Vision
• Identify priorities
• Adopt indicators
and set targets
• Manage the development of the IDP
• Approve & adopt
indicators • and set targets
• Communicate the
plan to other stakeholders
• Assist the Mayoral Committee in providing strategic direction
• Developing
strategies • and policies for
the organization
• Manage the development of the IDP
• Ensure that the
plan is integrated and implemented
• Provide objective, independent advice to improve oversight, governance and help to mitigate institutional risks.
• Be consulted on needs Participate in the development of the long term vision for the area
• Influence the
identification of Priorities
• Influence the
choice of indicators and setting of targets
4.6. PUBLIC PARTICIPATION
Community participation in terms of Performance Management System is a requirement by law. The Municipality uses existing forums to enhance community participation in monitoring, measurement and review of the Municipality’s performance in relation to the key performance indicators and performance targets as set by the Municipality. Such forums will include representatives from ward committees, and is representative of the composition of the local community of Lekwa.
4.7. AUDITING OF PERFORMANCE
Lekwa’s auditing of performance should happen in compliance with Section 14 of the Municipal Planning and Performance Management Regulations (2001) which inter alia states as follows:
(1) (a) A municipality must develop and implement mechanisms, systems, and processes for auditing the results of performance measurements as part of its internal auditing processes. (b) Any auditing in terms of paragraph (a) must include assessments of the following:
I. The functionality of the municipality’s performance management system; II. Whether the municipality’s performance management system complies with the
Act; and III. The extent to which the municipality’s performance measurements are reliable in
measuring performance of municipalities on indicators referred to in regulation 9 and 10.
(c)A municipality’s internal auditors must – (i) On a continuous basis audit the performance measurements of the
municipality; and
102 | P a g e F I N A L I D P 2 0 1 5 / 1 6
(ii) Submit quarterly reports on their audits to the Municipal Manager and the Performance Audit Committee referred to in sub- regulation (2).
(2) (a) A municipality must annually appoint and budget for a performance audit committee/audit committee consisting of at least three members, the majority of which may not be involved in the municipality as a councillor or employee. (b) A performance audit committee appointed in terms of paragraph (a) must include at
least one person who has expertise in performance management.
(3) A performance audit committee must meet at least twice during the financial year of the municipality concerned.
(4) A performance audit committee must – (i) Review the quarterly reports submitted to it in terms of sub-regulation (1) (c)(ii); (ii) Review the municipality’s performance management system and make
recommendation in this regard to the council of that municipality; and (iii) At least twice during a financial year submit an audit report to the municipality
concerned. INTERNAL AUDIT
The Internal audit unit is accountable to the audit committee and is required to maintain open and effective communication with the audit committee as well as to develop a flexible annual audit plan using a risk based methodology, addressing any weaknesses in risks or controls, including performance management as identified.
Internal audit will submit to the Audit Committee reports in respect of performance management their review and comment:
Compliance with statutory requirements and performance management best practices and standards;
Alignment of the Integrated Development Plan, the Budget, Service Delivery and Budget Implementation Plan and performance agreements;
Relevance of indicators to ensure they are measureable and relate to services performed by the municipality
Compliance with in-year reporting requirements;
Quarterly performance reports submitted by internal audit;
Municipality’s annual financial statements and timely submission to the Auditor-General by 31 August, each year;
Municipality’s annual reports within the stipulated timeframes;
Municipality's performance management system and make recommendations for its improvement to focus on economy, efficiency, effectiveness and impact in so far as the key performance targets set by the Municipality are concerned.
Submit an audit report to the Council at least twice during the financial year.
Internal audit will strengthen its auditing on reported performance against predetermined objectives by doing an evaluation against the overall criteria of compliance, usefulness and reliability.
The following briefly outlines what must be considered when reported performance against predetermined objectives is being audited:
103 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Compliance with laws, regulations and regulatory requirements
Existence - Objectives, indicators and targets must be predetermined and performance
information must be reported against them
Timeliness - Performance information must be reported within stipulated timeframes on a
quarterly, midyear and annual basis
Usefulness of performance information
Presentation - Performance against predetermined objectives is reported using the relevant
principles from the National Treasury guidelines
Measurability - Indicators are well defined and verifiable, and targets are specific, measurable and
time bound, as required by the National Treasury Framework for managing programme performance information.
Relevance - The indicators/measures relate logically and directly to an aspect of the institution's
mandate and the realisation of strategic goals and objectives, as required by the National Treasury FMPPI
Consistency - Objectives, indicators and targets are consistent between planning and reporting
documents as required by the National Treasury regulations
Reliability of performance reporting
Validity - Reported performance has occurred and relates to the institution
Accuracy - Amounts, numbers and other data relating to reported performance have been
recorded and reported correctly.
Completeness - All actual performance that should have been recorded has been included in the
reported performance information.
4.8. KEY PERFORMANCE INDICATORS (KPI’S)
As highlighted in the 2013/2014 Audit Report that KPIs including input, output and outcome indicators in respect of each of the development priorities were not set in the IDP as required by section 41(1) (a) of the MSA and regulations (1) and (9) (1) (a) of the Municipal Planning and Performance Management Regulations of 2001, the Municipality will set Key Performance Indicators (KPIs) including input, output and outcome indicators in respect of each of the development priorities and objectives as set out in its Integrated Development Plan.
These KPI’s serve as a yardstick for measuring performance, including outcomes and impact, with regard to the Municipality’s development priorities and objectives as set out in the Integrated Development Plan. Such indicators must be made known internally and to the general public.
Even the best performance indicator information is of limited value if it is not used to identify service delivery and performance gaps, to set targets and to work towards better results. Determining a set of appropriate indicators depends on the nature of the institution's mandate and setting clear targets to achieve such mandates.
104 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Performance standards, indicators and targets should be specified prior to the beginning of a service cycle, which may be a strategic planning period or a financial year. This is so that the Municipality will know what it is responsible for, and can be held accountable at the end of the cycle. While standards are generally "timeless", indicators and targets need to be set in relation to a specific period. The indicators for outcomes tend to span multi-year periods, while indicators for inputs and outputs may cover either quarterly or annual periods.
An institution should use standards and targets throughout the organisation, as part of its internal management plans and individual performance management system. A useful set of criteria for selecting performance targets is to apply the "SMART" principle for indicators to be:
• Specific: the nature and the required level of performance can be clearly identified
• Measurable: the required performance can be measured
• Achievable: the target is realistic given existing capacity
• Relevant: the required performance is linked to the achievement of a goal
• Time-bound: the time period or deadline for delivery is specified.
A good performance Indicator should also be:
Reliable: The Indicator should be accurate enough for its intended use and respond to changes in the level of performance.
Well-defined: The indicator needs to have a clear, unambiguous definition so that data will be collected consistently, and be easy to understand and use.
Verifiable: It must be possible to validate the processes and systems that produce the indicator.
Cost effective: The usefulness of the indicator must justify the cost of collecting the data.
Appropriate: The indicator must avoid unintended consequences and encourage service delivery improvements, and not give managers incentives to carry out activities simply to meet a particular target.
Relevant: The indicator must relate logically and directly to an aspect of the institution’s mandate, and the realisation of strategic goals and objectives
4.9. THE GENERAL KEY PERFORMANCE INDICATORS
Lekwa KPIs include the general key performance indicators as prescribed in terms of Municipal Systems Act, 2000. The following are the National Key Performance Indicators:
I. The percentage of households with access to basic level of water, sanitation, electricity and waste removal.
II. The percentage of households earning less than R1 100 per month with access to free basic services.
III. The percentage of a municipality’s capital budget actually spent on capital projects identified for a particular financial year in terms of the municipality’s Integrated Development Plan.
105 | P a g e F I N A L I D P 2 0 1 5 / 1 6
IV. The number of jobs created through municipality’s local economic development: initiatives including capital projects.
V. The number of people from employment equity target groups employed in three highest levels of Management in compliance with a Municipality approved employment equity plan.
VI. The percentage of a municipality’s budget actually spent on implementing workplace skills plan.
VII. Financial viability as expressed by the following ratios:
Debt coverage
Outstanding service debtors to revenue
Cost coverage These indicators are to be incorporated as part of the Municipality’s own indicators and will be reported on when compiling its annual report as prescribed in terms of the Municipal Systems Act.
4.10. KEY PERFORMANCE AREAS (KPA’S)
The Regulations, 2001 provides for the development of priorities and objectives as formulated by the Municipality during its Integrated Development Planning process. The Regulations 2006, provides for performance in terms of performance indicators linked to the following Key Performance Areas (KPA’s). In line with the five (5) year (2012-2016) IDP, the following KPAs were identified as the key drivers of the Municipality’s strategic objectives:
KPA 1 Basic Service Delivery
KPA 2 Municipal Transformation and Organisational Development
KPA 3 Local Economic Development
KPA 4 Municipal Financial Viability and Management
KPA 5 Good Governance and Public Participation
KPA 6 Spatial Rational The sixth KPA of Spatial Rational has been added in an attempt to provide a differentiated approach to addressing past unbalanced human settlement pattern and to lead, direct and manage the spatial, built and natural environment to ensure a spatial planning system that is sustainable and enhances integrated growth and development.
The Municipality has identified five (5) strategic objectives namely:
LLM 1: Build local economies to create more employment, decent work and sustainable livelihoods
LLM 2: Improve services and broaden access to them
LLM 3: Promote more active community participation in local government
LLM 4: Ensure more effective, accountable and clean local government that works
LLM 5: Build more united, non-racial, integrated and safer communities Related to the five broad strategic objectives, the Municipality has also identified nine strategic focus areas:
STRATEGIC FOCUS AREA 1: EQUITABLE PROVISION OF SERVICES
Adequate provision of basic services: Water, sanitation, electricity, solid waste removal and roads
Building new Infrastructure Maintaining of infrastructure Sustainable service provision
106 | P a g e F I N A L I D P 2 0 1 5 / 1 6
STRATEGIC FOCUS AREA 2: CREATION OF INTEGRATED AND SUSTAINABLE HUMAN SETTLEMENTS
Building communities Improve the quality of life Healthy and socially inclusive communities
STRATEGIC FOCUS AREA 3: CREATION OF LINKED ECOLOGICAL OPEN SPACES AND ENVIRONMENTAL SUSTAINABILITY
Environmental management Safe and healthy environments Parks and recreational facilities Ecological opens spaces such as Grootdraai Dam, wetlands and pans, rivers and water
courses, conservation areas and koppies
STRATEGIC FOCUS AREA 4: DELINEATION OF AN URBAN EDGE
Urban sprawl First Order Node: Standerton, Second Order Node: Morgenzon, Third Order Node: Thuthukani, Platrand and Holmdene and Fourth Order Node: Hartbeeskuil, Val, etc in line with the approved Spatial Development
Framework
STRATEGIC FOCUS AREA 5: ESTABLISHMENT OF EFFICIENT ACCESS AND INTEGRATED MOBILITY
Road networks Public transport nodes
STRATEGIC FOCUS AREA 6: CREATION OF A FUNCTIONAL HIERACHY
Robust administration Building administrative capability
STRATEGIC FOCUS AREA 7: FINANCIAL SUSTAINABILITY
Sound financial management and accounting Financial viability
STRATEGIC FOCUS AREA 8: EFFECTIVE LEADERSHIP, GOOD GOVERNANCE AND PUBLIC PARTICIPATION
Putting people first Transparent, accountable community engagement Community participation and responsiveness Programmes for the poor, disabled, youth & elderly Functional governance structures
STRATEGIC FOCUS AREA 9: BOOSTING THE LOCAL ECONOMY AND JOB CREATION
Planning and regulating of growth
107 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Direct investment job opportunities Local economic development
108 | P a g e F I N A L I D P 2 0 1 5 / 1 6
4.11. KEY PERFORMANCE AREAS (KPAs), STRATEGIC OBJECTIVES (SOs), KEY PERFORMANCE INDICATORS (KPIS) AND STRATEGIC FOCUS
AREAS (SFAS) AIMED AT ADDRESSING PRIORITY ISSUES
In addressing the KPAs, strategic objectives and the strategic focus areas as outlined above, objectives it is critical that a link is established between these indicators that will be used to measure the Municipality’s performance for the 2015/2016 financial year.
The following table makes the link between KPAs, strategic objectives and the strategic focus areas.
KEY PERFORMANCE AREA 1: BASIC SERVICE DELIVERY
LLM 2: Improve services and broaden access to them
SFA 1: Equitable provision of services
SFA 5: Establishment of efficient access and integrated mobility
Outcome: Improved access to services
109 | P a g e F I N A L I D P 2 0 1 5 / 1 6
IDP REF NO
PROGRAMME
PROGRAMME OWNER
OBJECTIVE KEY PERFORMANCE INDICATOR
BASELINE ANNUAL TARGETS
INPUT INDICATORS
OUTPUT INDICATORS
OUTCOME INDICATORS
WARD
BSD-01 PMU-01 TECHNICAL SERVICES
Effective expenditure management of capital project funding
MIG conditional grants spent in accordance with applicable frameworks
50% expenditure of Municipal Infrastructure Grant (MIG) coupled with Roll-overs on capital projects
100% of Municipal Infrastructure Grant (MIG) spent (Rand value)
Approved funding
Expenditure reports
Effective cash flow management
All
BSD-02 PMU-02 TECHNICAL SERVICES
Capital projects implemented on time and within budget
Standerton waste water treatment plant upgraded according to approved specifications.
Current effluent inflow 13ML per day; designed to treat 11ML per day but treating only 9ML per day
Standerton waste water treatment plant upgraded to specifications
MIG Approved funding
MIG Expenditure reports
Optimally functioning waste water treatment works
1-8, 10-11, 15
BSD-03 PMU-03 TECHNICAL SERVICES
Capital projects implemented on time and within budget
Bulk water infrastructure installed and AC pipes replaced with PVC pipes and improved water conservation and demand management
Bulk water infrastructure installed and AC pipes replaced with PVC pipes
MIG Approved funding
MIG Expenditure reports
Reduced water distribution losses
1-8, 10-11, 15
110 | P a g e F I N A L I D P 2 0 1 5 / 1 6
BSD-04 PMU-04 TECHNICAL SERVICES
Capital projects implemented on time and within budget
Boreholes installed in rural areas
28145 (90.6%) households with piped water in dwelling; 2195 households with access to communal taps; 731 no water provision
9 Boreholes installed in rural areas
MIG Approved funding
MIG Expenditure reports
Increased water provision in rural areas
9, 12, 13
BSD-05 PMU-05 TECHNICAL SERVICES
Capital projects implemented on time and within budget
Sanitation services installed in rural areas
87 rural sanitation toilets installed
MIG Approved funding
MIG Expenditure reports
Increased sanitation provision in rural areas
9, 12, 13
BSD-06 PMU-06 TECHNICAL SERVICES
Capital projects implemented on time and within budget
Electrification of RDP houses in Standerton extension 8
120 RDP houses electrified in Standerton Extension 8
INEP Approved funding
Increased access to electricity
15
BSD-07 PMU-07 TECHNICAL SERVICES
Capital projects implemented on time and within budget
Fencing of Walter Sisulu Street cemetery
Walter Sisulu Street Cemetery fenced old and dilapidated
??? Km of fencing constructed around Walter Sisulu Street Cemetery
EPWP Approved funding
Expenditure reports
Safe and secured burial space
1 - 15
BSD-08 PMU-09 Capital projects implemented on time and within budget
Electrification of rural houses
53 houses in rural area electrified
Internal funding
9
111 | P a g e F I N A L I D P 2 0 1 5 / 1 6
BSD-09 PMU-10 Capital projects implemented on time and within budget
Environmental impact assessment conducted for development of new cell at Morgenzon landfill site
Conduct environmental impact assessment for development of new cell at Morgenzon landfill site
Internal funding
Clean and safe environment
14
BSD-10 WATER & SANITATION
-01
TECHNICAL SERVICES
Updated Water Services Development Plan (WSDP)
Reviewed Water Services Development Plan (WSDP) for submission to Council by January 2016
Current WSDP requires updating
Water Services Development Plan updated and submitted to Council by end January 2016
Existing WSDP Updated and council approved WSDP
Integrated water and sanitation services planning
All
BSD-11 WATER & SANITATION
-02
TECHNICAL SERVICES
Improved blue drop status
Blue drop status improved from 34,4% to 44%
34.4% Blue drop status, ranked 12th in Province
10% Improvement in blue drop status
Sampling points
District Water Laboratory compliance monitoring report
Improved water quality
BSD-12 WATER & SANITATION
-03
TECHNICAL SERVICES
Reduction in unaccounted water distribution losses
Reduced unaccounted technical water losses within the norm of 10%
Non-revenue water losses accounted for 14% (2013/2014 audited financial statements), and 57,2% from 2012/2013 audited AFS (only 10% of such losses can be accounted for as technical losses)
Reduce unaccounted water losses within norm of 10%
Formal
112 | P a g e F I N A L I D P 2 0 1 5 / 1 6
BSD-13 WATER & SANITATION
-04
TECHNICAL SERVICES
Sustainable provision of water to all formal households
Households provided with potable water provision
28146 (90.6%) households with piped water in dwelling; 2194 households with access to communal taps; 731 no water provision (StatsSA); water interruptions due to aging infrastructure
Provide 2371 households with piped water. Reduce water interruptions.
BSD-14 WATER & SANITATION
-05
TECHNICAL SERVICES
Sustainable provision of water to households in rural wards
households in rural areas provided with water via drill boreholes
28145 (90.6%) households with piped water in dwelling; 2195 households with access to communal taps; 731 no water provision (StatsSA)
4197 Households in rural areas provided water via drill borehole
Rural
BSD-15 WATER & SANITATION
-07
TECHNICAL SERVICES
Improved green drop status
green drop status improved from 54% to 64%
54% green drop status, ranked 4th in the province
Improvement of green drop status
Sampling points
District Water Laboratory compliance monitoring report
BSD-16 WATER & SANITATION
-08
TECHNICAL SERVICES
Sustainable provision of sanitation services to households in rural wards
households in rural areas provided with sanitation services
29791 (86.6%) households with flush or chemical toilets; 316 VIP toilets; 1980 pit latrines, 1280 no toilet
516 Households in rural areas provided with sanitation services via VIP toilets
113 | P a g e F I N A L I D P 2 0 1 5 / 1 6
BSD-17 WATER & SANITATION
-09
TECHNICAL SERVICES
Provision of formal domestic customers with access to removal of waste water and refuse by means of sewers
Households receiving sanitation services
28918 formal domestic customers receiving sewerage services
All formal domestic customers with access to removal of waste water and refuse by means of sewers
BSD-18 ELECTRICITY &
TRANSPORT-01
TECHNICAL SERVICES
Data collected on all electrical equipment containing Polychlorinated Biphenyls (PBC)
Data collected and report generated by 30 December 2015 on all electrical equipment containing Polychlorinated Biphenyls (PBC)
Equipment (transformers, switch gear, circuit breakers) older than 1989 with Polychlorinated Biphenyls oils (PBC) as an insulation mechanism must be replaced with more bio-friendly oil that does not contain PCB in line with the Regulations to phase out the use of PCB materials and PCB contaminated materials of 2014
1 Report generated by December 2015 on data collected on electrical equipment containing PBCs
All
BSD-19 ELECTRICITY &
TRANSPORT-02
TECHNICAL SERVICES
Maintenance and repairs of street and high mast lights
Number of street lights and high mast maintained and repaired
0ver 2000 street lights and high mast
# street lights and high-mast lights maintained and repaired
Database of street and high mast lights
Working street and high-mast lights
Well-lit areas 1 - 8, 10 - 11 & 15
114 | P a g e F I N A L I D P 2 0 1 5 / 1 6
BSD-20 ELECTRICITY &
TRANSPORT-03
TECHNICAL SERVICES
Electrical network audit conducted
Conduct audit on the network infrastructure
The current network is not reliable, it is old, fault, damaged and not well maintained (To identify the aging equipment, for the purpose of repairs and maintain affected network equipment)
40% of the network audited
Data on electrical network
Electrical network audit report
BSD-21 ELECTRICITY &
TRANSPORT-04
TECHNICAL SERVICES
Maintenance of network equipment
Maintenance of substations and mini-subs
There was no proper maintenance and many equipment they are operating at less than 50% of their life span (All electrical equipment to be maintained and repaired)
60% of electrical network to be maintained
BSD-22 ELECTRICITY &
TRANSPORT-05
TECHNICAL SERVICES
Electrical Network refurbished
Replace all aging and vandalised electrical equipment
some of the equipment are more than 40 years old need to be replaced
20% of aging and stolen electrical equipment to be replaced
115 | P a g e F I N A L I D P 2 0 1 5 / 1 6
BSD-23 ROADS & WORKS-01
TECHNICAL SERVICES
Maintenance of municipal roads
Distance of roads maintained
80km's of roads are well maintained and 77km's of paved finished roads are stressed, with potholes, cracks and severe deterioration
25km of roads maintained through pothole patching
Road maintenance plan
Maintained roads
Improved road drivability
BSD-24 ROADS & WORKS-02
TECHNICAL SERVICES
Gravelling of municipal roads
Distance of roads gravelled
209.6km's of gravel roads gravelled, 8km's inaccessible or never gravelled and Municipal borrow pit has been established in process of registration
5km of roads gravelled
Road maintenance plan
Gravelled roads
Improved road drivability
BSD-25 ROADS & WORKS-03
TECHNICAL SERVICES
Cleaning and maintenance of storm-water drainage systems
Distance of storm-water structures cleaned and maintained
80Km's of storm water structures have efficient flow and 98.3 are blocked and used for dumping
???km of storm-water structures cleaned and maintained
Road maintenance plan
Clean storm-water structures
BSD-26 WASTE MANAGEM
ENT-01
COMMUNITY SERVICES & SAFETY
Provide solid waste collection services to formal households
Number of points provided with weekly kerbside solid waste collection services according to 25 zonal plan
19786 points with access to weekly solid waste collection service out of 21606 points
949 728 points provided with weekly solid waste collection service annually
Weekly zonal plan
Weekly business solid waste collection as per zonal plan
Cleaner environment
All
116 | P a g e F I N A L I D P 2 0 1 5 / 1 6
BSD-27 WASTE MANAGEM
ENT-02
COMMUNITY SERVICES & SAFETY
Provide solid waste collection services to businesses
Number of businesses provided with at least weekly solid waste collection service according to 2 zonal plan
319 businesses with access to solid waste collection
No. of Businesses provided with weekly solid waste collection service
Weekly zonal plan
Weekly household solid waste collection as per zonal plan
Cleaner environment
All
BSD-28 WASTE MANAGEM
ENT-03
COMMUNITY SERVICES & SAFETY
Extend access to solid waste collection services
Number of additional households where solid waste refuse removal services to be provided
1820 households with no access to solid waste removal service (Thuthukani RDP - 520; Rooikoppen - 350; Mandela Camp - 250)
1000 Additional households provided with access to weekly kerbside solid waste removal service
Weekly zonal plan
Extended solid waste removal service
Cleaner environment
All
BSD-29 WASTE MANAGEM
ENT-04
COMMUNITY SERVICES & SAFETY
Provide street cleaning service in CBD and along main route entrances
Areas in CBD and along main routes entrance cleaned according to zonal plan
Street cleaning in CBD areas and main routes done daily
4 reports on the Implementation of street cleaning services as per monthly schedule
Monthly schedule for cleaning
Monthly report on cleaning schedule
Cleaner environment
All
BSD-30 FIRE & DISASTER
MANAGEMENT-01
COMMUNITY SERVICES & SAFETY
Functional Fire Brigade Services
Number of reports on fire brigade and emergency rescue services rendered submitted quarterly
4 Reports on fire brigade and emergency rescue services rendered prepared
4 Reports on fire brigade and emergency rescue services rendered annually
Occurrence book entries
BSD-31 LICENSING-01
COMMUNITY SERVICES & SAFETY
Drivers and vehicle licencing activities undertaken
Number of vehicles tested for registration and licensing and reported on
No. Of vehicles licensed
12 Monthly Reports on the registered and licensing of vehicles
E- Natis System face value forms
Roadworthy vehicles
117 | P a g e F I N A L I D P 2 0 1 5 / 1 6
monthly
BSD-32 LICENSING-02
COMMUNITY SERVICES & SAFETY
Testing for Learners Licences
Number of applicants tested for learners licenses and reported on monthly
No. Of Learners tested
12 Monthly Reports on applicants tested for learners license
E Natis System face value forms
Legally registered licensed drivers
BSD-33 LICENSING-03
COMMUNITY SERVICES & SAFETY
Testing for Drivers Licences
Number of applicants tested for driver’s license and reported on monthly
No. Of drivers 12 Monthly Reports on applicants tested for driver’s license
E Natis System face value forms
Legally registered learners licensed drivers
BSD-34 LICENSING-04
COMMUNITY SERVICES & SAFETY
Testing of Vehicles for roadworthiness
Number of vehicles tested for roadworthiness and reported on monthly
No. Of vehicles tested
12 Monthly Reports on applications for testing of vehicles for roadworthiness
E Natis System face value forms
Roadworthy vehicles
BSD-35 TRAFFIC-01 COMMUNITY SERVICES & SAFETY
Traffic Law Enforcement
Number of reports on traffic law enforcement activities undertaken quarterly
4 Reports 4 Reports on traffic law enforcement activities undertaken annually
BSD-36 LIBRARIES-01
COMMUNITY SERVICES & SAFETY
Functional library service
Number of library community awareness campaigns conducted quarterly
New KPI 4 Library community awareness campaigns conducted annually
Library Programme
Library awareness
All
118 | P a g e F I N A L I D P 2 0 1 5 / 1 6
BSD-37 LIBRARIES-02
COMMUNITY SERVICES & SAFETY
Functional library service
Number of new members recruited to join Lekwa libraries
New KPI 4 Reports on increase in library readership annually
Existing library membership data
Increased library membership
All
BSD-38 SPORTS & RECREATIO
N-01
COMMUNITY SERVICES & SAFETY
Maintenance of cemeteries
Existing cemeteries maintained according to monthly plan
Cemeteries cleaned Cemeteries cleaned according to monthly plan
Monthly schedule for cleaning
Clean environment
All
BSD-39 SPORTS & RECREATIO
N-02
COMMUNITY SERVICES & SAFETY
Provide burial grounds
Weekly preparation of burial sites
Burial sites prepared
4 Reports of burial space prepared annually
Requests and payments for burial space
Gravesites prepared
Clean environment
All
BSD-40 SPORTS & RECREATIO
N-03
COMMUNITY SERVICES & SAFETY
Maintenance of sports and recreational facilities
Existing sports and recreational facilities maintained according to monthly plan
Facilities maintained as per monthly plan
4 Reports on maintenance of facilities prepared annually
Clean environment
All
BSD-41 SPORTS & RECREATIO
N-04
COMMUNITY SERVICES & SAFETY
Maintenance of parks, gardens and open spaces
Existing parks, gardens and open spaces maintained according to monthly plan
Areas maintained as per monthly plan
4 Reports on maintenance of facilities prepared annually
Clean environment
All
119 | P a g e F I N A L I D P 2 0 1 5 / 1 6
KEY PERFORMANCE AREA 2: MUNICIPAL TRANSFORMATION AND ORGANISATIONAL DEVELOPMENT
LLM 4: Ensure more effective, accountable and clean local government that works
SFA 6: Creation of a functional hierarchy
Outcome: Transformed organisation
120 | P a g e F I N A L I D P 2 0 1 5 / 1 6
IDP REF NO
PROGRAMME
PROGRAMME OWNER
OBJECTIVE KEY PERFORMANCE INDICATOR
BASELINE ANNUAL TARGETS
INPUT INDICATORS
OUTPUT INDICATORS
OUTCOME INDICATORS
WARD
MTOD-01 PERFORMANCE
MANAGEMENT-01
MM Development of a Performance Management framework
Updated and approved Performance Management framework by end July 2015
Performance Management framework approved in June 2013
Updated Performance Management Framework submitted to Council for approval by end July 2015
Current PMS Policy Framework
Revised and adopted PMS Policy framework
Effective organisational performance management
All
MTOD-02 PERFORMANCE
MANAGEMENT-02
MM Implementation of performance management system
Performance agreements of section 57 senior managers signed within prescribed timeframe annually by end July 2015
6 Performance agreements signed for sec 54/56 managers
6 Performance agreements of section 57 senior managers signed within prescribed timeframe annually
Draft performance agreements, Municipal Performance Planning Regulations, SDBIP
Signed performance agreements
Effective performance monitoring
All
MTOD-03 PERFORMANCE
MANAGEMENT-03
MM Implementation of performance management system
Quarterly performance reviews conducted for section 54/56 managers and reported on quarterly to Council
Performance reviews not conducted
24 performance reviews conducted
Signed Performance agreements
Performance reviews
Effective performance monitoring
All
MTOD-04 PERFORMANCE
MANAGEMENT-04
MM Implementation of performance management system
Evaluating of performance of s54/56 managers conducted annually
Annual performance reviews not conducted
6 annual performance evaluations conducted for s54/56 managers
Signed Performance agreements
Annual performance evaluations
Effective performance monitoring
All
121 | P a g e F I N A L I D P 2 0 1 5 / 1 6
MTOD-05 HUMAN RESOURCES-
01
CS Filling of posts in line with the approved Organogram and Budget for the 2015/2016 financial year
Number of posts filled as per the approved 2015/2016 staff establishment
Vacancy rate at 25.72%
Filling of vacancies in line with the approved and funded Organogram and Budget for the 2015/2016 financial year
Approved organogram
Appointment letters
Fully staffed organisational structure
All
MTOD-06 HUMAN RESOURCES-
02
CS Job descriptions developed to monitor employee performance
Number of job descriptions developed in line with task job evaluation system by end December 2015
New KPI Outstanding Job descriptions developed by end December 2015
Draft job descriptions
Approved job descriptions
Effective workforce
All
MTOD-07 HUMAN RESOURCES-
03
CS Improved labour relations
Number of Local Labour Forum meetings held monthly and reported on quarterly
Non-adherence to schedule of forum meetings
12 sittings of Local Labour Forums meetings annually
Schedule of meetings
Minutes of meetings
Improved labour relations
All
MTOD-08 HUMAN RESOURCES-
04
CS Equitable employment opportunities created
Employment Equity Committee meetings held and reported on quarterly
Non-adherence to schedule of forum meetings
4 Employment Equity meetings held annually
Schedule of meetings
Minutes of meetings
Transformed workforce
All
MTOD-09 HUMAN RESOURCES-
05
CS Creation of a skilled and capacitated workforce
Training Committee meetings held and reported on quarterly
Non-adherence to schedule of forum meetings
4 Training Committee meetings held annually
Schedule of meetings
Minutes of meetings
Skilled and capacitated workforce
All
122 | P a g e F I N A L I D P 2 0 1 5 / 1 6
MTOD-10 HUMAN RESOURCES-
06
CS Creation of a safe and healthy working environment
Occupational Health and Safety meetings convened and reported on quarterly
Non-adherence to schedule of forum meetings
4 Occupational Health and Safety meetings held annually
Schedule of meetings
Minutes of meetings
Healthy and safe working environment
All
MTOD-11 HUMAN RESOURCES-
07
CS Implementation of the Workplace Skills Plan
Annual Training Report (ATR) and Workplace Skills Plan (WSP) submitted to LGSETA annually by 30 April
Annual Training Report (ATR) and Workplace Skills Plan (WSP) submitted to LGSETA by 30 April 2015
ATR and Workplace Skills Plan submitted to LGSETA by 30 April 2016
Approved WSP and ATR
ATR and WSP submissions acknowledged
Skilled and capacitated workforce
All
MTOD-12 HUMAN RESOURCES-
08
CS Implementation of the Workplace Skills Plan
Percentage training interventions implemented in terms of the approved WSP (actual training interventions implemented / total training interventions planned)
Workplace Skills Plan implemented at 50% of planned training
60% of training interventions implemented in terms of the approved WSP
Approved WSP
Quarterly training reports
Skilled and capacitated workforce
All
MTOD-13 HUMAN RESOURCES-
09
CS Development of Bursary Policy for Internal Staff
Development and submission to Council of Bursary Policy for Internal Staff by end October 2015
Draft Bursary Policy for Internal Staff developed
Bursary Policy for Internal staff developed and submitted to Council by end October 2015
Draft Bursary Policy for Internal Staff
Approved Bursary Policy for Internal Staff
Capacitated and skilled workforce
All
123 | P a g e F I N A L I D P 2 0 1 5 / 1 6
MTOD-14 HUMAN RESOURCES-
10
CS Bursary funding for Internal Staff
Rand value of bursary budget spent on training of internal staff through the Bursary Policy for Internal Staff
New KPI R 100 000.00 spent on the training of internal staff through bursary funding
Approved Bursary Policy for Internal Staff
Approved bursary applications
Capacitated workforce
All
MTOD-15 HUMAN RESOURCES-
11
CS Create opportunities for internships and learner ships programmes in line with approved WSP
Number of Internships and learner ships opportunities created per approved WSP
26 Interns (Work Integrated Learning) and 8 learners participating in learner ships appointed
Approved internships and learner ships programmes implemented in line with approved WSP
Approved discretionary funding
Quarterly training reports
Capacitated workforce and youth
All
MTOD-16 HUMAN RESOURCES-
12
CS Recruitment of financial interns
Number of Finance interns appointed by end July 2015 in terms of FMG standards
Only three interns appointed/ one absorbed
Five (5) interns appointed in terms of FMG standards
Intern candidate shortlist
Appointment letters
Capacitated interns
All
MTOD-17 HUMAN RESOURCES-
13
CS Implementation of the Workplace Skills Plan
Percentage of municipality’s budget actually spent on implementing its workplace skills plan (WSP) (Actual amount spent on training /total funds allocated for training)
Workplace Skills Plan implemented at 50% of planned training
60% of budget spent on implementation of WSP
Approved Workplace Skills Plan
quarterly training report
Effective expenditure management
All
124 | P a g e F I N A L I D P 2 0 1 5 / 1 6
MTOD-18 HUMAN RESOURCES-
14
CS Approval of an Employment Equity Plan (EEP)
Employment Equity Plan approved and submitted to the Department of Labour by end October 2015
Employment Equity Plan approved by January 2015
Employment Equity Plan approved and submitted to the Department of Labour
Approved employment equity plan
Employment equity targets met
Transformed workforce
All
MTOD-19 HUMAN RESOURCES-
15
CS Implementation of the Employment Equity Plan (EEP)
Number of people from employment equity target groups employed in the three highest levels of management in compliance with the approved Employment Equity Plan
A total of nine (9) employees from disadvantaged groups (black females) in the first 3 levels
Recruit and appoint an additional 7 female and or disabled employees in the first 3 levels of management
Approved organogram
Appointment letters
Employment equity in the workplace
All
MTOD-20 HUMAN RESOURCES-
16
CS Implementation of the Employment Equity Plan
Number of reports submitted on employees employed in accordance with approved EEP targets and reported on quarterly
New KPI 4 reports submitted on employees employed in accordance with approved EEP targets and reported on quarterly
Approved organogram and Employment Equity Plan
Appointment letters and Annual Employment Equity Report submitted to Department of Labour
Employment equity in the workplace
All
MTOD-21 HUMAN RESOURCES-
17
CS Improved ITC governance and management
ICT policies for Disaster Recovery Plan (DRP) and Business Continuity Plan (BCP) developed by end July 2015
Draft policies in place
Develop ICT policies for Disaster Recovery Plan (DRP) and Business Continuity Plan (BCP) by end July
Draft DRP and BCP policies
Approved DRP and BCP policies
Improved IT governance
All
125 | P a g e F I N A L I D P 2 0 1 5 / 1 6
2015
MTOD-22 HUMAN RESOURCES-
18
CS Development of Scarce Skills Policy
Scarce Skills Policy developed for submission to Council by end October 2015
New KPI Scarce Skills Policy developed for submission to Council by end October 2015
Draft Scarce Skills Policy
Approved Scarce Skills Policy
Regulated scarce skills environment
All
MTOD-23 HUMAN RESOURCES-
19
CS Development of Staff Retention Policy
Staff Retention Policy developed for submission to Council by end January 2016
New KPI Staff Retention Policy developed for submission to Council by end January 2016
Staff Retention Policy
Staff Retention Policy
Retention of critical and scarce skills
All
MTOD-24 HUMAN RESOURCES-
20
CS Telephone Usage Policy developed
Telephone Usage Policy developed for submission to Council by end April 2016
New KPI Telephone Policy Telephone Policy
Telephone Policy
Effective management of telephone usage
All
MTOD-25 HUMAN RESOURCES-
21
CS Submission of Return on Earnings Report to the Compensation Fund
Submission of Return on Earnings Report to the Compensation Fund by end March 2016
Return of Earnings Report submitted to Compensation Fund
Return of Earnings Report submitted by end of March 2016
Return of Earnings Report
Letter of good standing from the Compensation Commission
Sufficient employee cover against injury on duty
All
126 | P a g e F I N A L I D P 2 0 1 5 / 1 6
KEY PERFORMANCE AREA 3: LOCAL ECONOMIC DEVELOPMENT
LLM 3: Build local economies to create more employment, decent work and sustainable livelihoods
SFA 9: Boosting the local economy and job creation
Outcome: Improved economic growth
127 | P a g e F I N A L I D P 2 0 1 5 / 1 6
IDP REF NO
PROGRAMME PROGRAMME OWNER
OBJECTIVE KEY PERFORMANCE
INDICATOR
BASELINE ANNUAL TARGETS INPUT INDICATORS
OUTPUT INDICATORS
OUTCOME INDICATORS
WARD
LED-01 LOCAL ECONOMIC
DEVELOPMENT
DEVELOPMENT & PLANNING
Revised LED strategy developed
LED strategy updated and submitted for approval by Council by end July 2015
LED strategy approved by Council but requires review and updating
Updated and revised LED Strategy submitted for approval by Council end July 2015
Existing LED Strategy
Revised and approved LED strategy
Identified local economic growth potential
All
LED-02 LOCAL ECONOMIC
DEVELOPMENT
DEVELOPMENT & PLANNING
Conducive economic policy developed to attract investment opportunities
Investment Incentive policy submitted to Council by end July 2015
Draft Investment Incentive Policy developed
Updated and revised Investment Incentive Policy submitted for approval by Council by end July 2015
Draft Investment Incentive policy
Approved Investment Incentive Policy
Conducive economic environment
All
LED-03 LOCAL ECONOMIC
DEVELOPMENT
DEVELOPMENT & PLANNING
Functional LED Forum
Number of LED Forum meetings held quarterly to enhance creation economic growth opportunities
LED Forum re-launched
4 LED Forum meetings convened annually
Reports, agendas
LED Forum Resolutions taken
Improved business partnerships
All
LED-04 LOCAL ECONOMIC
DEVELOPMENT
DEVELOPMENT & PLANNING
Profiling of businesses
Quarterly updated database of all businesses operational in Lekwa
New KPI Quarterly updated database of businesses operational in Lekwa
SMME & Cooperatives database
Updated business database
Established All
LED-05 LOCAL ECONOMIC
DEVELOPMENT
DEVELOPMENT & PLANNING
SMME & Cooperatives support
Number of training interventions coordinated for SMMEs and cooperatives quarterly
4 training interventions conducted for 2014/2015
4 training interventions coordinated for SMMEs and cooperatives annually
Database of SMMEs and cooperatives
Training interventions facilitated
Empowered SMMEs & cooperatives
All
128 | P a g e F I N A L I D P 2 0 1 5 / 1 6
LED-06 LOCAL ECONOMIC
DEVELOPMENT
DEVELOPMENT & PLANNING
Implementation of 2011 LED Job Summit Resolutions
Number of reports submitted quarterly on implementation of 2011 LED Job Summit Resolutions
New KPI 4 quarterly reports submitted on implementation of 2011 LED Job Summit held
2011 LED Job Summit Resolution
Approved reports
Improved economic growth
All
LED-07 LOCAL ECONOMIC
DEVELOPMENT
DEVELOPMENT & PLANNING
LED Job Summit hosted
LED Job summit hosted by end May 2016
LED Job Summit held in 2011
LED Job Summit held by end May 2016
LED Job Summit concept document
2016 LED Job Summit Resolutions
Economic growth
All
LED-08 LOCAL ECONOMIC
DEVELOPMENT
DEVELOPMENT & PLANNING
SMME Exhibition hosted
SMME Exhibition hosted by end September 2015 to showcase skills and products
New KPI SMME Exhibition held by end September 2015
SMME Exhibition concept document
SMME Exhibition
Enhanced economic development
All
LED-09 LOCAL ECONOMIC
DEVELOPMENT
DEVELOPMENT & PLANNING
Job opportunities created
Opportunities created for supporting skills development through EPWP and reported on quarterly
New KPI 4 quarterly reports on opportunities created for skills development through EPWP
Project implementation reports
Approved reports
Poverty alleviation
All
129 | P a g e F I N A L I D P 2 0 1 5 / 1 6
KEY PERFORMANCE AREA 4: MUNICIPAL FINANCIAL VIABILITY AND MANAGEMENT
LLM 4: Ensure more effective, accountable and clean local government that works
SFA 7: Financial sustainability
Outcome: Financial viability
130 | P a g e F I N A L I D P 2 0 1 5 / 1 6
IDP REF NO
PROGRAMME PROGRAMME OWNER
OBJECTIVE KEY PERFORMANCE INDICATOR
BASELINE ANNUAL TARGETS
INPUT INDICATORS
OUTPUT INDICATORS
OUTCOME INDICATORS
WARD
MFV-01 REVENUE & BILLING-01
CHIEF FINANCIAL OFFICER
Administration of the Municipal Bank Accounts
Favourable bank balance maintained in the primary bank account throughout the financial period
Favourable bank balance of R 2 499 627 in the Primary Account as at 30 June 2014
Bank Balance in Primary Bank Account R 4 million as at end June 2016
Monthly Cash Flow Statements
Quarterly Reports (Sec 52)
Effective financial management
All
MFV-02 REVENUE & BILLING-02
CHIEF FINANCIAL OFFICER
Financial Management
Increased levels of investments
Municipality had investments amounting to R 12 168 625 in the call account as at 30 June 2014
Accumulated investments amounting to R 15 million in the investment account by 30 June 2016
Investment and Banking Policy
Quarterly Reports (Sec 52)
Improved financial sustainability
All
MFV-03 REVENUE & BILLING-03
CHIEF FINANCIAL OFFICER
Improved system of internal controls
System of Internal Control and Reporting Procedures developed in line with section 95 of the MFMA on general financial management for submission to Council by end July 2015
New KPI System of Internal Control and Reporting Procedures developed for submission to Council by end July 2015
Draft System of Internal Control, 2013/2014 Audit Action Plan
Developed System of Internal Control and Reporting Procedures
Effective internal financial controls
All
131 | P a g e F I N A L I D P 2 0 1 5 / 1 6
MFV-04 REVENUE & BILLING-04
CHIEF FINANCIAL OFFICER
Revenue enhancement
Revenue generation increased to 80% monthly average
Average revenue collection rate of ???%
Improved revenue collection rate from ???% to ???% annually
System of Internal Control and Reporting Procedure; Credit Control and Debt Collection Policy
Quarterly Reports (Sec 52)
Effective revenue collection
All
MFV-05 REVENUE & BILLING-05
CHIEF FINANCIAL OFFICER
Revenue Management, debt collection and credit control
Reduction in outstanding debtors
Debtors are outstanding in excess of 365 days (R 468 million)
Reduction in the Outstanding Debtors
System of Internal Control and Reporting Procedure; Credit Control and Debt Collection Policy
Quarterly Reports (Sec 52)
Effective revenue collection
All
MFV-06 BUDGETING & REPORTING
CHIEF FINANCIAL OFFICER
Timely IDP and Budget Review
Time schedule of key deadlines submitted to Council 10 months before start of next budget year as per s21 MFMA provisions
2014/2015 Key deadlines approved before end August
Submit time schedule of 2016/2017 key deadlines to Council by end August 2015
Section 21 MFMA; 2016-17 Draft MTREF;
Approved time schedule of 2016/2017 key deadlines
Improved financial planning
All
132 | P a g e F I N A L I D P 2 0 1 5 / 1 6
MFV-07 BUDGETING & REPORTING-01
CHIEF FINANCIAL OFFICER
Preparation of credible budget in line with NT budgeting guidelines/regulations
Budget approved within the budget time frames as approved by Council
Budget Approved by 29th May 2015
Budget Approved before end May 2016
2016-17 Draft MTREF noted by Council by the 29th April 2016 Approved budget; Process Plan of Key Deadlines
Approved budget Credible, Sustainable Budget
All
MFV-08 BUDGETING & REPORTING-02
CHIEF FINANCIAL OFFICER
Improved accounting standards
Pilot Project for the establishment of the MSCOA Project Steering Committee
New KPI SCOA Project Steering Committee established
Municipal SCOA Project Steering Committee Terms of Reference
Established MSCOA Project Steering Committee
MSCOA Established
All
MFV-09 BUDGETING & REPORTING-03
CHIEF FINANCIAL OFFICER
Improved accounting standards
Number of reports towards the implementation of the Municipal Standard Chart of Accounts (MSCOA) quarterly
New KPI 4 Progress reports on activities undertaken by the MSCOA Steering Committee
MSCO Project Steering Committee Terms of Reference
Reports and Minutes of MSCOA Steering Committee
Functional MSCOA Project Steering Committee
MFV-10 BUDGETING & REPORTING-04
CHIEF FINANCIAL OFFICER
Timely Financial Reporting
Number of section 71 reports submitted within 10 working days from end of a
12 monthly s71 reports submitted annually
MFMA section 71
S71 Reports; Quality Certificates & Acknowledgement of receipt of report
Improved accountability
133 | P a g e F I N A L I D P 2 0 1 5 / 1 6
month
MFV-11 BUDGETING & REPORTING-05
CHIEF FINANCIAL OFFICER
Timely Financial Reporting
Number of section 52 reports submitted to Council within 30 days of the end of a quarter
4 quarterly section 52 reports submitted annually
MFMA Section 52
S52 Reports; Quality Certificates & Council Resolutions
Improved accountability and oversight
MFV-12 BUDGETING & REPORTING-06
CHIEF FINANCIAL OFFICER
Timely Financial Reporting
Number of midyear budget and performance assessment report 72 reports submitted to Council in terms of section 5(1)(f) of MFMA by end January annually
Midyear budget and performance assessment submitted on 29 January 2015
1 midyear assessment report submitted to Council by end January 2016
MFMA Sections 72 and 54; Section 72 report
Midyear budget and performance assessment report: Council Resolution
Improved accountability and oversight
MFV-13 BUDGETING & REPORTING-07
CHIEF FINANCIAL OFFICER
Timely Financial Reporting
2014/2015 AFS submitted to Council and AG by end August 2015
AFS submitted to Council and AG by end August
2014/2015 AFS submitted to Council and AG by end August 2015
Section 71 and 52 reports
Draft AFS submission acknowledgement of receipt by AG
Improved accountability and good governance
134 | P a g e F I N A L I D P 2 0 1 5 / 1 6
MFV-14 EXPENDITURE-01
CHIEF FINANCIAL OFFICER
Improved system of internal controls
System of Internal Control and Reporting Procedures developed in line with section 65 on expenditure management for submission to Council by end July 2015
New KPI System of Internal Control and Reporting Procedures developed for submission to Council by end July 2015
Draft System of Internal Control, 2013/2014 Audit Action Plan
Developed System of Internal Control and Reporting Procedures
Effective internal financial controls
All
MFV-15 EXPENDITURE-02
CHIEF FINANCIAL OFFICER
Expenditure management
Reports submitted quarterly to Council on expenditure management
New KPI 4 reports annually on withdrawals not approved and salaries and wages expenditure
System of Internal Control and Reporting Procedure
Quarterly Section 52 reports; Council Resolution
Improved accountability and oversight
All
MFV-16 SUPPLY CHAIN MANAGEMENT-
01
CHIEF FINANCIAL OFFICER
Effective procurement systems
Number of reports submitted to Council quarterly on implementation of supply chain management policy in line with the Reg 6 of the Supply Chain Management Regulations
Quarterly Reports on withdrawals and deviations submitted
4 reports submitted annually on the implementation of the Supply Chain Management Regulations
SCM Regulations and Approved SCM Policy
Quarterly SCM reports, Council Resolutions
Improved accountability and oversight
All
135 | P a g e F I N A L I D P 2 0 1 5 / 1 6
MFV-17 SUPPLY CHAIN MANAGEMENT-
02
CHIEF FINANCIAL OFFICER
Contract Management
Finalisation of Service Level Agreements with appointed service providers within stipulated timeframes as per appointment letter
New KPI Finalisation of Service Level Agreements with appointed service providers within stipulated timeframes as per appointment letter
Bid Adjudication Reports
Signed Service Level Agreements
Effective contract management
All
KEY PERFORMANCE AREA 5: GOOD GOVERNANCE AND PUBLIC PARTICIPATION
LLM 3: Promote more active community participation in local government
SFA 8: Effective leadership, good governance and public participation
Outcome: Improved accountability and transparency
136 | P a g e F I N A L I D P 2 0 1 5 / 1 6
IDP REF NO
PROGRAMME PROGRAMME OWNER
OBJECTIVE KEY PERFORMANCE INDICATOR
BASELINE ANNUAL TARGETS
INPUT INDICATORS
OUTPUT INDICATORS
OUTCOME INDICATORS
WARD
GG-01 INTERNAL AUDIT-01
MM-01 Maintain audit outcome
Non-regression from 2013/2014 audit outcome and no more than 15 other matters raised in the 2014/2015 audit outcome to be received by November 2015
2013/2014 Unqualified audit opinion
2014/2015 unqualified audit outcome with no more than 15 other matters raised
AFS and APR Audit Report Improved good governance and accountability
All
GG-02 INTERNAL AUDIT-02
MM-02 Action plan developed to address audit findings
Action plan developed and reported on quarterly to address audit findings
2013/2014 Audit action plan developed
4 Quarterly reports on addressing audit findings in the audit action plan
Audit action plan
All audit findings cleared
Improved good governance and accountability
All
GG-03 INTERNAL AUDIT-03
MM-03 Functional audit committee
Number of Audit committee meetings convened annually
Adherence to Audit Committee schedule of meetings
4 Audit Committee meetings held annually
Internal Audit reports
Audit Committee minutes
Improved good governance and oversight
All
GG-04 INTERNAL AUDIT-04
MM-04 Functional audit committee
Number of Audit committee reports prepared for timely submission to Council quarterly
4 audit committee reports prepared and submitted to Council
4 Audit Committee reports submitted to council annually
Audit committee minutes
Council adopted Audit Committee reports
Improved good governance and oversight
All
137 | P a g e F I N A L I D P 2 0 1 5 / 1 6
GG-05 INTERNAL AUDIT-05
MM-05 Functional audit committee
Audit Committee charter developed and submitted to council by end July 2015
2014/2015 Approved Audit Committee Charter
Audit Committee Charter reviewed and submitted to Council
Current audit committee charter to be reviewed
Revised and adopted Audit Committee Charter
Improved good governance and oversight
All
GG-06 RISK MANAGEMENT-
01
MM-06 Effective enterprise risk management
Enterprise-wide risk register developed and submitted to Council by end July 2015
2014/2015 Risk register developed
Enterprise-wide risk register developed and adopted by Council
Risk assessment workshops conducted
Risk Register Improved good governance
All
GG-07 RISK MANAGEMENT-
02
MM-07 Functional Risk Management Committee
Number of Risk Management Committee meetings held annually
New KPI 4 Risk Management Committee meetings held annually
Risk assessment reports
Risk Management Committee minutes
Improved good governance and oversight
All
GG-08 RISK MANAGEMENT-
03
MM-08 Functional Risk Management Committee
Number of Risk Management Committee reports compiled for submission to the Audit Committee quarterly
New KPI 4 Risk Management Committee reports submitted to the Audit Committee annually
Risk Management Committee minutes
Audit Committee adopted risk management reports
Improved good governance and oversight
All
GG-09 RISK MANAGEMENT-
04
MM-09 Ensure sustainable anti-corruption capacity
Number of anti-corruption and ethics awareness raising workshops conducted quarterly
New KPI 4 Anti-corruption and ethics awareness raising workshops conducted annually
Approved Anti-corruption and Fraud Prevention Plan
Workshops held Reduced corruption risk
All
138 | P a g e F I N A L I D P 2 0 1 5 / 1 6
GG-10 RISK MANAGEMENT-05
MM-10 Review of Risk Management Policy
Risk Management Policy and Risk Management Strategy adopted by Council April 2015
Risk Management Policy and Risk Management Strategy reviewed for submission to Council by end June 2016
Review Risk Management Policy and Risk Management for submission to Council by end June 2016
Risk Management Policy and Strategy
Revised and approved Risk Management Policy and Strategy
Improved good governance
All
GG-11 RISK MANAGEMENT-
06
MM-11 Review Fraud Prevention Plan and Awareness Strategy on Fraud and Corruption
Fraud Prevention Plan and Awareness Strategy on Fraud and Corruption reviewed for submission to Council by end June 2016
Fraud Prevention Plan and Awareness Strategy on Fraud and Corruption approved by Council in November 2011
Review Fraud Prevention Plan and Awareness Strategy on Fraud and Corruption
Adopted Fraud Prevention Plan and Awareness Strategy on Fraud and Corruption
Revised and approved Fraud Prevention Plan and Awareness Strategy on Fraud and Corruption
Reduced corruption risk
All
GG-12 PERFORMANCE MANAGEMENT-
01
MM-12 Compliance with legislated provisions for effective performance management
Number of quarterly performance reports prepared and submitted to Council
4 performance reports submitted
4 Performance reports prepared and submitted to Council annually
Performance information reports
Council adopted performance information reports
Improved good governance and accountability
All
GG-13 PERFORMANCE MANAGEMENT-
02
MM-13 Compliance with legislated provisions for effective performance management
2014/2015 Annual Performance Report prepared in compliance with section 46 of MSA prepared and submitted to AG by end August 2015
Annual Performance Report submitted on 28 August 2014
1 Annual Performance Report submitted to AG by end August 2015
Quarterly performance information reports
Tabled annual performance report
Improved good governance and accountability
All
139 | P a g e F I N A L I D P 2 0 1 5 / 1 6
GG-14 PERFORMANCE MANAGEMENT-
03
MM-14 Compliance with legislated provisions for effective performance management
2014/2015 Annual Report submitted to be tabled to Council by no later than end January 2016
Annual Report tabled on 29 January 2015
1 Annual Report tabled to Council before end January 2016
Quarterly performance information reports & draft annual performance report
Tabled annual report
Improved good governance and accountability
All
GG-15 PERFORMANCE MANAGEMENT-
04
MM-15 Compliance with legislated provisions for effective performance management
2014/2015 Oversight report on annual report prepared and submitted to Council in compliance with section 129 of MFMA before end March 2016
2013/2014 Oversight Report adopted on 30 March 2015
1 Oversight Report on annual Report prepared and submitted for adoption by Council before end March 2016
Tabled Annual Report
Council adopted oversight report
Improved good governance, transparency and accountability
All
GG-16 PERFORMANCE MANAGEMENT-
05
MM-16 SDBIP aligned to the IDP and the budget
Approved 2016/2017 SDBIP aligned to IDP and budget, within 28 days after budget approval
Approved SDBIP SDBIP aligned to IDP and budget approved within 28 days after budget approval
Predetermined objectives as contained in the approved 2016/2017 IDP
SDBIP approved by Executive Mayor
Improved good governance, transparency and accountability
All
GG-17 INTEGRATED DEVELOPMENT PLANNING-01
DP-01 Credible IDP development
Reviewed and approved 2016/2017 IDP by end May 2016
Council approved IDP
2016/2017 IDP approved by end May 2016
Draft IDP Council adopted IDP
Improved good governance and accountability
All
GG-18 INTEGRATED DEVELOPMENT PLANNING-02
DP-02 Credible IDP development
2016/2017 IDP/Budget/PMS Process Plan adopted by Council by August 2015
2015/2016 IDP/Budget/PMS process plan adopted by Council
IDP/Budget/PMS process plan adopted by end August 2015
Draft process plan
Council approved IDP/Budget/PMS process plan
Improved good governance and accountability
All
140 | P a g e F I N A L I D P 2 0 1 5 / 1 6
GG-19 INTEGRATED DEVELOPMENT PLANNING-03
DP-03 Credible IDP development
Number of IDP Technical Steering Committee meetings held quarterly to consolidate inputs into draft IDP
New KPI 4 IDP Technical Steering Committee meetings held annually
Approved process plan
IDP Technical Steering Committee minutes
Improved good governance and accountability
All
GG-20 INTEGRATED DEVELOPMENT PLANNING-04
DP-04 Credible IDP development
Number of IDP Representative Forum meetings held quarterly for consolidation of sector department inputs into draft IDP
New KPI 4 IDP Representative Forum meetings held annually
Approved process plan
IDP Representative Forum minutes
Improved good governance and accountability
All
GG-21 SECRETARIAT-01
CS-01 Developing of schedule of council and committee activities
Schedule of all activities of Council and its committees developed by end June 2016
2014/2015 Schedule developed
Schedule developed of all activities of Council and its committees
Draft schedule Approved schedule of activities
Improved governance
All
GG-22 SECRETARIAT-02
CS-02 Adherence to schedule of council meetings
Ordinary sitting of Council meetings as per approved schedule held quarterly
Schedule of council meetings adhered to
4 Ordinary Council meetings held annually
Reports, notice, Council agenda
Council meeting minutes, attendance registers
Improved good governance and accountability
All
GG-23 SECRETARIAT-03
CS-03 Monitor implementation of Council resolutions
Quarterly reports on progress on implementation of council resolutions
1 Report submitted on implementation of council resolutions
4 Reports on progress on implementation of council resolutions submitted to Council annually
Council minutes Approved reports
Improved good governance and accountability
All
141 | P a g e F I N A L I D P 2 0 1 5 / 1 6
GG-24 SECRETARIAT-04
CS-04 Functional section 79 committees of council
Number of Rules, Ethics, By-laws and Policies Committee meetings held in line with the Council approved schedule
Committee not sitting as per schedule
4 Rules, Ethics, By-laws and Policies Committee meetings held
Committee reports and agendas
Committee minutes
Improved good governance and accountability
All
GG-25 SECRETARIAT-05
CS-05 Functional section 79 committees of council
Number of MPAC meetings held in line with the Council approved schedule
4 MPAC meetings held
Committee reports and agendas
Committee minutes
Improved good governance and accountability
All
GG-26 SECRETARIAT-06
CS-06 Functional section 79 committees of council
Number of Ward Councillors Forum meetings held in line with the Council approved schedule
12 Ward Councillors Forum meetings held
Committee reports and agendas
Committee minutes
Improved good governance and accountability
All
GG-27 SECRETARIAT-07
CS-07 Functional section 79 committees of council
Number of Local Geographical Names Committee meetings held in line with the Council approved schedule
4 Local Geographical Names Committee meetings held
Committee reports and agendas
Committee minutes
Improved good governance and accountability
All
GG-28 SECRETARIAT-08
CS-08 Functional section 79 committees of council
Number of Budget & Treasury Oversight Committee meetings held in line with the
4 Budget &Treasury Oversight Committee meetings held
Committee reports and agendas
Committee minutes
Improved good governance and accountability
All
142 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Council approved schedule
GG-29 SECRETARIAT-09
CS-09 Functional section 79 committees of council
Number of Corporate & Community Services Oversight Committee meetings held in line with the Council approved schedule
4 Corporate & Community Services Oversight Committee meetings held
Committee reports and agendas
Committee minutes
Improved good governance and accountability
All
GG-30 SECRETARIAT-10
CS-10 Functional section 79 committees of council
Number of Technical Services Committee meetings held in line with the Council approved schedule
4 Technical Services Oversight Committee meetings held
Committee reports and agendas
Committee minutes
Improved good governance and accountability
All
GG-31 SECRETARIAT-11
CS-11 Functional Mayoral Committee
Number of Mayoral Committee meetings held as per Council approved schedule
New KPI 24 Mayoral Committee meetings held
Mayoral Committee reports and agendas
Approved Mayoral Committee minutes
Improved good governance and accountability
All
GG-32 SECRETARIAT-12
CS-12 Records management system implemented
Records Management Policy and Standard Operating Procedures
Records management system need updating
Records Management Policy and Standard Operating Procedures
Draft Records Management Policy
Approved Records Management Policy and Standard Operating
Improved records and archives management
All
143 | P a g e F I N A L I D P 2 0 1 5 / 1 6
developed by September 2015
developed by September 2015
Procedures
GG-33 SECRETARIAT-13
CS-13 To regulate the affairs and services provided by the Municipality
Number of By-laws identified for review, updating and consulted upon quarterly
Outdated by-laws
4 By-laws identified, reviewed and consulted upon
Draft by-laws Widely consulted revised by-laws
Improved governance
All
GG-34 SECRETARIAT-14
CS-14 Improved customer care
Finalise and publicise adopted Municipal service charter by end July 2015
Service Charter developed
Municipal Service Charter adopted by end July 2015
Approved Municipal Service Charter
Well publicised Municipal Service Charter
Improved customer satisfaction
All
GG-35 COMMUNICATIONS-01
CS-15 Review of Communications Policy
Communications Policy and Strategy reviewed by end January 2016
Communications Strategy approved in September 2013 and needs review
Communications Policy and Strategy reviewed by January 2016
Revised Communications Strategy
Revised and council adopted Communications Policy and Strategy
Improved community interaction on the affairs of the municipality
All
GG-36 COMMUNICATIONS-02
CS-16 Continuous interaction with communities
Number of reports on activities undertaken on interaction with communities through print media
4 reports on print media interaction with communities
4 Reports on interaction with communities through print media
Communications strategy
Approved reports
Improved community engagement
All
GG-37 COMMUNICATIONS-03
CS-17 Continuous interaction with communities
Number of external newsletters issued quarterly
2 Editions issued 4 Editions of the Lekwa Gazette municipal newsletter issued annually
Articles and other newsworthy items
Printed newsletters
Improved community engagement
All
144 | P a g e F I N A L I D P 2 0 1 5 / 1 6
GG-38 IGR-01 CS-18 Establishment of functional local IGR Forum
Number of local IGR Forums meetings held quarterly
New KPI 4 Local IGR Forum meetings convened annually
Approved IGR Framework
IGR Forum meeting minutes
Improved stakeholder engagements
All
GG-39 IGR-02 CS-19 Special programmes conducted quarterly for the elderly, children, youth and persons with disabilities
Special programmes conducted for the elderly, children, youth and persons with disabilities
Special programmes conducted for the elderly, children, youth and persons with disabilities as per annual plan
Special programmes conducted for the elderly, children, youth and persons with disabilities as per annual plan
Special programmes plan
Activities for vulnerable groups
Informed and participating communities
All
GG-40 OFFICE OF THE MAYOR-01
CS-20 Community involvement in the affairs of the municipality
Community participation in the affairs of the municipality through mayoral izimbizo held annually
Annual consultation on IDP and Budget held in November 2014 and April 2015 respectively
6 mayoral izimbizo to be held annually
Schedule of Izimbizo
Maximum attendance and participation; attendance registers
Informed and participating communities
All
GG-41 OFFICE OF THE SPEAKER-01
CS-21 Established and functional Ward Committees
Ward operational plans developed and approved
14 of the 15 ward committees functional
15 ward operational plans developed and approved
Ward councillors' draft programmes
Approved Ward Operational Plans
Informed and participating communities
All
GG-42 OFFICE OF THE SPEAKER-02
CS-22 Established and functional Ward Committees
Number of reports on the implementation of ward operational plans submitted to Council quarterly
New KPI 4 Reports on the implementation of ward operational plans submitted to Council annually
Ward committee reports
Approved Ward Committee Reports
Informed and participating communities
All
GG-43 OFFICE OF THE CHIEF WHIP-01
CS-23 Functional whippery office
Number of whippery meetings convened annually
New KPI 12 Whippery meetings convened annually
Whippery meeting schedule
Approved minutes
Improved governance
All
145 | P a g e F I N A L I D P 2 0 1 5 / 1 6
GG-44 OFFICE OF THE CHIEF WHIP-02
CS-24 Functional caucus structure
Number of caucus meetings convened annually
New KPI 4 Caucus meetings convened annually
Caucus meeting schedule
Approved minutes
Improved governance
All
GG-45 OFFICE OF THE CHIEF WHIP-03
CS-25 Functional multiparty forum
Number of multiparty forums convened annually
New KPI 4 Multiparty Forum meetings convened annually
Multiparty Forum meeting Schedule
Approved minutes
Improved governance
All
GG-46 OFFICE OF THE CHIEF WHIP-04
CS-26 Visiting of projects
Number of projects visited quarterly
New KPI 8 Projects visited annually
Approved project list
Project reports Improved oversight
All
146 | P a g e F I N A L I D P 2 0 1 5 / 1 6
KEY PERFORMANCE AREA 6: SPATIAL RATIONAL
LLM 5: Build more united, non-racial, integrated and safer communities
SFA 2: Creation of integrated and sustainable human settlements
SFA 3: Creation of linked ecological open spaces and environmental sustainability
SFA 4: Delineation of urban edge
Outcome: Improved settlement patterns
147 | P a g e F I N A L I D P 2 0 1 5 / 1 6
IDP REF NO
PROGRAMME PROGRAMME OWNER
OBJECTIVE KEY PERFORMANCE INDICATOR
BASELINE ANNUAL TARGETS
INPUT INDICATORS
OUTPUT INDICATORS
OUTCOME INDICATORS
WARD
SR-01 HUMAN SETTLMENTS-
01
DEVELOPMENT & PLANNING
Regulated alienation and disposal of municipal owned land
Approval of Land Alienation Policy submitted to Council by the end October 2015
Draft Land Alienation Policy adopted by the Council on 2014-10-30
Land Alienation Policy approved by the Municipal Council by the end October 2015
Draft Land Alienation Policy
Approved Land Alienation Policy
Effective and regulated land disposal
All
SR-02 HUMAN SETTLMENTS-
02
DEVELOPMENT & PLANNING
Upgrading plans of all existing informal settlements for future development
Approved informal settlement upgrading plans by end June 2016
Profiling, socio-economic survey and geotechnical study completed
Approved Informal Settlement upgrade by the end of June 2016
Close out report
Informal settlements upgrading plans
Upgrading of existing informal settlements
All
SR-03 HUMAN SETTLMENTS-
03
DEVELOPMENT & PLANNING
Level 1 accreditation of the Municipality by the Department of Human Settlements
To have the Municipality accredited on Level 1 by the end of the 4th quarter.
Council approved application for accreditation for Level 1 of the Municipality on 2014-10-30
Level 1 accreditation of the Municipality by end of the 4th quarter
Application for Level 1 Accreditation
Accreditation of the Municipality for Level 1
Publication of the accreditation to Level 1 on Provincial Government Gazette
All
SR-04 HUMAN SETTLMENTS-
04
DEVELOPMENT & PLANNING
Establishment of the Lekwa Social Housing Association
Establishment of Lekwa Housing Association for the management and maintenance of the Community Residential Units (CRU) by end of the 4th quarter
Council approved the establishment of the Lekwa Social Housing Company on 2014-10-30
Established Lekwa Housing Association for the management and maintenance of the CRU by the end of the 4th quarter
Application for registration of Section 21 Company
Certificate of Registration of Section 21 Company
Certificate of Registration of Section 21 Company
All
148 | P a g e F I N A L I D P 2 0 1 5 / 1 6
SR-05 HUMAN SETTLMENTS-
05
DEVELOPMENT & PLANNING
Effective housing related complaints management system
Establishment housing related complaints management system by the end of the 3rd quarter
Council approved establishment of the Complaint management system on 2014-10-30
To have a complaints and resolution mechanism in place by the end of the 3rd quarter
Draft Housing / Property Complaints management register
Approved Housing / Property Complaints management system
Reduced housing / property complaints received
All
SR-06 HUMAN SETTLMENTS-
06
DEVELOPMENT & PLANNING
Compilation of an up to date housing need register
Compilation of an up to date housing need register by the 3rd quarter
Council approved the establishment of the Lekwa Housing Need Register on 2014-10-30
To have a credible Housing Register linked to DoHS by the end of the 3rd quarter
Registration drive for Housing Need Register
Updated housing need register
Reduced housing backlog
All
SR-07 HUMAN SETTLMENTS-
07
DEVELOPMENT & PLANNING
Creation of integrated and sustainable human settlements.
number of reports on implementation of government housing subsidy projects.
Reports submitted 4 reports on implementation of government housing subsidy projects.
Council Resolution as per report
Council Resolution as per report
Council Resolution as per report
All
SR-08 LAND & PLANNING-01
DEVELOPMENT & PLANNING
Reviewed Spatial Development Framework
Reviewed SDF in line with SPLUMA by end January 2016
Current SDF not in line with SPLUMA
Reviewed SDF in line with SPLUMA by January 2016
Current approved SDF
Reviewed and updated SDF
Integrated spatial planning
All
SR-09 LAND & PLANNING-02
DEVELOPMENT & PLANNING
Implementation of Standerton Town Planning Scheme (Land Use Scheme)
Number of applications evaluated for the processing of land use applications within 180 days after receipt of all outstanding and relevant information and documents submitted
Approved 10 applications
10 Applications evaluations
Standard Operating Procedures for evaluating land use applications
Evaluation checklist
Regulated land uses
All
149 | P a g e F I N A L I D P 2 0 1 5 / 1 6
SR-10 LAND & PLANNING-03
DEVELOPMENT & PLANNING
Enforcement of National Building Regulations
Evaluate building plans within 30 days of building plans received, complete 3-4 inspections per building plan received
Approve 100 building plans, completed 350 inspections
Approve 110 building plans, complete 400 inspections
Standard Operating Procedures for building regulation
Compliance to National Building Regulations as set out in Standard Operating Procedures
Regulated building control environment
All
150 | P a g e F I N A L I D P 2 0 1 5 / 1 6
5. CHAPTER 5: SPATIAL RATIONALE
5.1. LOCATION ANALYSIS
The Lekwa Local Municipality was established on the 5th of December 2000. The municipality is located in the Gert Sibande District Municipality, which is one of three District municipalities in Mpumalanga Province. The Municipal area is located on the south Mpumalanga Province on the border of the Free State province and is indirectly connected to Gauteng and Durban via N3. It is also located to the south of the TEKS area (Trichardt, Evander, Kinross, Secunda), which is the economic hub in the region. The total area of the Lekwa Local Municipality covers approximately 4 586 km² in extent. Amongst the six (6) municipalities, Lekwa Local Municipality is the smallest Local Municipality in the Gert Sibande District both in terms of the area and population and thus representing 14% of the total area of the District Municipal Area.
Figure 1: Locality
5.2. SPATIAL PARTTEN AND DISTRIBUTION
The municipal area is diverse with wide variety of socio-demographic profile demonstrated by the spatial and physical form/pattern that reflects in all aspects of local development. The Lekwa Municipal Area comprises of the following: STANDERTON
Standerton covers a total area of 3 993.8 ha in extent which measures 5km in an east-west direction and 9km in a north-south direction and thus has been identified to be the largest urban settlement in Lekwa Local Municipality. It is also identified as the only first order node in LLM as well as the administrative and institutional hub of the municipality. It is strategically located within the Lekwa Local Municipality as it is located in the South West of the LLM, at the intersection of all major routes (the R23, R39, R546 and R50) and at the only major railway station in the District.It is a typical medium sized South African town, with a central CBD, industrial areas on the periphery, low density
151 | P a g e F I N A L I D P 2 0 1 5 / 1 6
residential development and separation between white and black and rich and poor neighbourhoods. Standerton is made up of Standerton Proper on the northern banks of the Vaal River; Meyerville on the Southern banks of the Vaal River; Stansfield Hill with infill development that took place in the form of Standerton West Ext 1 to the north of Standerton Proper; Sakhile Proper which is the first large black township located to the west of Standerton Proper; Standerton Ext 1 on the Southern banks of the Vaal River between Meyerville and the western portion of Standerton Proper; Standerton West Ext 3 which is directly adjacent to Standerton West Ext 1; Standerton Ext 3 to the north of Standerton Proper; Standerton Ext 4 to the north of Standerton Proper; Sakhile Ext 1, 2 & 3 which is buffered from the white town by the railway line and the industrial area; Edzak to the Southeast of Meyerville; Azalea Proper that was later extended with the establishment of Azalea Ext 1 which was developed to accommodate the Indian population located to the north of Standerton West; Standerton Ext 6 to the north of Standerkop; Sakhile Ext 7 on the west of Standerkop; Sakhile Ext 4 to the south of Sakhile Proper; Sakhile Ext 5&6 that was established to accommodate people living in the informal settlement is located between Sakhile Proper and Standerton Proper and Standerton Ext 8 which is a mixed use township catering for affordable housing market as well as RDP housing is located along R55.
MORGENZON
Morgenzon covers a total area on 304 ha which measures approximately 2km in a north-south direction and 3km in the east-west direction and is located at the intersection of the R35 and R39. Its existence is mainly influenced by the transportation of coal from the Secunda complex to Majuba Power Station near Volksrust. It is historically a local service centre that served (and still does) the surrounding commercial farming areas with basic needs. Despite its potential due to its location along a major route (R35) to Volksrust via the N11 from Bethal, it is still largely under-developed as a service centre due possibly to the competition offered by the more attractive business centres of Ermelo, Bethal and even Standerton itself. Given the vast distance between this locality and the Standerton Urban node, Morgenzon form a completely self-contained economic sub-node with a slightly different character than the former.
Morgenzon is made up of Morgenzon Proper, Sivukile Proper, Sivukile Ext 1, Sivukile Ext 2, Sivukile Ext 3, Sivukile Ext 4and Morgenxon Ext 1(industrial).
152 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Figure 2: Morgenzon Township Extensions
THUTHUKANI Thuthukani lies approximately 25km north east of Standerton, and essentially started as a workers village to house employees of the Tutuka power station which is located 3 km to the east of the village. It is surrounded by industrial uses such as Tutuka power station, Alpha substation to the east as well as New Denmark Colliery to the north. Thuthukani is made up of two townships namely Thuthukani Proper and Thuthukani Extension 1 as well as Eskom Hostels to the west of town. Thuthukani Ext 1 is a recently established township which is not occupied yet.
Figure 3: Thuthukani Extensions
153 | P a g e F I N A L I D P 2 0 1 5 / 1 6
5.3. INFORMAL SETTLEMENTS
There are twelve (12) Informal Settlements in the Lelwa Local Municipalitynamely Mandela, Tambo, Sisulu, Welamlambo, Shivovo, Taxi Rank Camp (Standerton Ext. 6), Slovo, 3273/R & 3324/R Camp (Sakhile), 3995 Camp (Standerton Ext. 6), X-Camp (Sakhile Ext. 2), Mahala Park and TLC Camp. All twelve informal Settlements are currently in the process of being formalised through the National Upgrading Support Programme (NUSP) The SDF identified Eight (8) distinct functional areas, which consists of a range of features that clearly distinguishes one area from other zones and include the following:
5.3.1. FUNCTIONAL AREA 1
Functional Area 1 includes Standerton Proper which is characterised by low density, highest provisioning of functional open space and natural open space as well as commercial, educational, health and sport facilities. However issues such as densification, encroachment of commercial facilities into residential areas, and upgrade of the sports precinct and the civic precinct still needs to be addressed.
5.3.2. FUNCTIONAL AREA 2
Functional area 2 includes Meyerville which is characterised by low density, highest provisioning of functional open space, limited natural open space and commercial facilities, lowest provision of health, secondary educational and sport and recreational facilities. However issues such as densification and health and sport and recreation facilities still needs to be addressed.
5.3.3. FUNCTIONAL AREA 3
Functional area 3 includes Standerton X3 and 4 which is characterised by low density, limited functional open space but ample natural open space, no commercial facilities, limited primary educational facilities with no secondary educational facilities, sufficient health facilities as well as sport and recreational facilities. Issues that have to be addressed are densification and functional open space.
5.3.4. FUNCTIONAL AREA 4
Functional area 4 includes Standerton West and Azalea which is characterised an average density, no functional open space, limited natural open space, commercial facilities, sufficient educational facilities, sport and recreational facilities as well as limited health facilities. Issues that have to be addressed include the provision of open spaces and health facilities.
5.3.5. FUNCTIONAL AREA 5
Functional Area 5 includes Sakhile and extensions which is characterised by an average density, limited functional and natural open space, limited existing commercial facilities with some proposed commercial facilities, limited existing primary educational facilities with sufficient proposed educational facilities, sufficient secondary educational facilities, limited existing health facilities with sufficient proposed health facilities, limited existing sports facilities with sufficient proposed sports facilities. Issues that have to be addressed are the provisioning of open space and the development of social facility sites.
154 | P a g e F I N A L I D P 2 0 1 5 / 1 6
5.3.6. FUNCTIONAL AREA 6
Functional Area 6 includes Standerton X6. It has an above average density characterised with no functional open space, limited natural open space, no commercial facilities with limited proposed commercial facilities, limited primary educational facilities with no secondary educational facilities, limited health facilities, and no sports facilities. It is the most underprovided area and thus attention should be given to the provisioning of all facilities.
5.3.7. FUNCTIONAL AREA 7
Functional area 7 includes Standerton X7 which is characterised with the highest density, no functional or natural open space, no commercial facilities with limited proposed commercial facilities, sufficient primary educational facilities, no secondary facilities, no health facilities and sufficient sports facilities. Issues that have to be addressed is the lack of open space and health facilities.
5.3.8. FUNCTIONAL AREA 8
Functional Area 8 includes the proposed Standerton X8 which is characterised by an average density, sufficient functional open space, limited natural open space, limited commercial facilities, sufficient primary and secondary schools, no health and sports facilities. Issues that have to be addressed are health and sports facilities.
5.4. HIERACHY OF NODES
A hierarchy of nodes should consist of different order nodes, each fulfilling different functions at different scales and spread equidistant throughout the area but giving cognisance to access to main routes, population density and environmentally sensitive or protected areas. A hierarchy of nodes is important in order to ensure a functional clustering of facilities and services as well as economic viability based on economies of scale. This will ensure sustainable provision of social and commercial facilities, equality of access to all and shorter travelling distances. In this regard The Gert Sibande SDF identified Standerton as a first order node and Morgenzon and Thuthukani as third order nodes. No second order nodes were identified.
5.4.1. FIRST ORDER
Standerton
It has the largest population in the Lekwa LM,
The largest number of facilities and services as well as the highest order facilities and services.
It also forms the focus of the most important roads in the district, thus leading to and reinforcing its status as the highest order settlement.
5.4.2. THIRD ORDER NODES
Morgenzon
Has a potential to be upgraded to a second order node due to nit locality on the intersection of R39 and R35 as well as its distance from Standerton and its existing facilities.
Thuthukani
On the other hand, Thuhukani is solely dependent on Tutuka Power Station and New Denmark Colliery and as a result it does not have a natural growth potential.
155 | P a g e F I N A L I D P 2 0 1 5 / 1 6
It only serves as a residential area for workers from the above mentioned facilities
It is also in an isolated locality and has limited growth potential.
Platrand and Holmdene were also identified as additional third order nodes and are characterised by the following:
Located next to railway station and major roads
There is an existing village
There is also a number of facilities such as primary school, post office and commercial facilities.
5.4.3. FOURTH ORDER NODES
Hartbeeskuil, Folly and Val.
Figure 4: Order Nodes
Land Restitution and Land Claims Land claims & land restitution is a very important as far as land development is concerned. From a spatial planning point of view land ownership does not necessarily determine the preferred use of land; however the exceptions are where uses are restructured through restricted ownership practices & where land restitution leads to commercially productive land becoming unproductive. The land restitution process can restrict investment and economic activity over the short- medium term but should not have an impact on the long-term use of the land. For the purpose of this section Land Audit is scheduled to be conducted in the coming financial year 2015/16. The land audit project has already been advertised and proposals have been received in July 2014.
Land Use Management System It is important to note that the jurisdiction of the Lekwa Local Municipality is still regulated ad governed by the Standerton Town Planning Scheme 1997. Currently there is no Land Use Management Scheme (LUMS), however the municipality is currently in the process of developing a Land Use Scheme (that will be wall to wall) with the help of the Department of Rural Development and Land Reform (DRDLR). The process of developing the LUMS was already underway since 2013
156 | P a g e F I N A L I D P 2 0 1 5 / 1 6
and was suspended due to the development of the Spatial Planning and Land Use Management Act 2013 and the Regulations that has to be aligned with the LUMS.
The regulation of land use is still done in terms of different legislations which remain applicable throughout the municipal area in most instances with regard to development and that land use change applications. Land parcels that are situated outside the urban edge are administered by the Provincial Department.
The municipality has developed draft by-laws (Open space bylaw, encroachment by law as well as the Land Use Management by-law that is required by SPLUMA. However funds must be allocated in the coming financial year 2015/16 for the bylaws to be enacted.
5.5. LINKS
5.5.1. ROAD NETWORKS
Lekwa Municipal Area is not directly linked to the national road system. The major routes are thus provincial roads and minor roads. The following roads play an important role in terms of regional accessibility and linkages:
R23, R546, R547, R38, R35, R39, R50
The R23 and R35 is identified as key economic corridors on district level
R39 is identified on local level, due to the important economic nodes that they connect.
Apart from this main road network an expansive network of secondary gravel roads traverses the municipal area, providing accessibility at the most local level.
No new roads are planned in the area.
157 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Figure 5: Road Network
Several stretches of the road within the Municipality are either in a poor or very poor state. The following important roads within Lekwa have been identified as being in a poor state:
Portions of the R23 west of Standerton;
The 546 north of Standerton;
The R50 north of Standerton;
The R39 north-east of Morgenzon; and
The R547.
158 | P a g e F I N A L I D P 2 0 1 5 / 1 6
5.5.2. RAILNETWORK
The most important railway line (freight line) is the Johannesburg – Durban passenger railway line (Shosholoza Meyl) which runs parallel to the R23. Standerton Station is one of only five stops between Johannesburg and Durban.
This line diverts in the region of Standerton with a branch line leading to Vrede in the south (freight line) as well as a line that leads to Tutuka Power station, this line however is not currently in use as it is not electrified.
There is another railway line in the eastern part of the LLM. It links linking Bethal to Volksrust via Morgenzon, Amersfoort, Daggakraal and Wakkerstroom/Sizameleni. This line is not currently in use.
159 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Figure 6: Rail Network
5.5.3. PUBLIC TRANSPORT
Public transport consists of rail, busses and taxis.
Standerton station plays an important role in long distance passenger transport.
In terms of busses, there is no municipal bus service, but a private bus service runs on the R546 between Standerton, the TEKS area, Bethal and Leandra.
In terms of taxis, there are several taxi services. These run mostly on the R546, but also on the R50, R23 and R39.
Figure 7: Public Transport Network
160 | P a g e F I N A L I D P 2 0 1 5 / 1 6
5.5.4. NON-MOTORIZED TRANSPORT
The bulk of the population (65%) make use of non-motorised transport, making this the most important mode of transport.
The largest majority (63%) travel by foot and 2% by bicycle.
Transport Challenges
The status of the roads are poor and needs upgrading and maintenance. The need for high maintenance and operations cost are amongst the factors contributing to the problem,
Due to the fact that places of work are separated from places of residence (mostly rural areas), people have to travel long distances to employment areas and to also access some of the social facilities. The cost of and the opportunity cost of travelling are greater for the rural commuters.
SPATIAL CHALLENGES
Land Matters
Illegal occupation of land/ Land invasion
Mushrooming of informal settlements in both urban & rural areas
Lack of GIS system as well GIS officer
Lack of Land Use Inspectors/ Land Invasion controllers
Unavailability of landfill sites for refuse services in rural areas
Unavailability of sites for cemeteries
5.5.5. POLICY MATTERS
Lack of by-laws
Lack of Land Use Management Scheme (Current Standerton Town Planning Scheme 1997 is outdated)
Proposed Projects and Programmes
Land Audit (Appointment of consultant) Development of GIS System Appointment of GIS officer Appointment of Land Use Inspectors/Land Invasion Controllers Establishment of Regional Cemetery (Identification of site, Geotechnical Studies and Environmental Studies) Establishment of Morgenzon Landfill site (Identification of site, Geotechnical Studies and Environmental Studies) Development of Bulk Contribution Policy (Appointment of a consultant)
161 | P a g e F I N A L I D P 2 0 1 5 / 1 6
6. CHAPTER 6: FINANCIAL VIABILITY AND MANAGEMENT
7.1. INTRODUCTION
The goal of the finance department is to be accountable, responsible and transparent budget and treasury department, whilst ensuring compliance with legislations and regulations.
In order to achieve the above goal the finance department has committed itself to do the following;
To implement council’s financial policies and resolutions To properly administer credit and debt management system To have an effective accounting management system To provide legislated reports timeously To assist the Accounting Officer to compile and administer the budget To ensure proper management of the municipal assets and liabilities. To advice the Accounting Officer and Heads of Departments on financial
matters
By;
- Develop, workshop and review financial policies in line with relevant legislation/regulations
- Ensure proper communication of council’s resolutions within the department. - Ensure accurate and reliable consumer data in municipal system - Monitor the accuracy of the monthly billing of consumers and monitor the
debtors - To administer the effective revenue collection and credit control management
system - To establish an effective customer care system for consumers - Establish and promote effective and efficient implementation of Supply Chain
Management system. - Manage the integrity of financial data into the financial system - Ensure adherence to the budget processes, implementation and monitoring
thereof. - Establish asset management unit that will implement and monitor the asset
management system.
7.2. EXECUTIVE SUMMARY
The application of sound financial management principles for the compilation of Lekwa Local Municipality’s financial plan is essential and critical to ensure that the Municipality remains financially viable and that municipal services are provided sustainably, economically and equitably to all communities.
The 2015 Budget Review notes that the global economic outlook has weakened and the pattern of slow growth is likely to persist, with consequences for all developing economies. South Africa’s gross domestic product (GDP) forecast for 2015 has also been revised down. The National Treasury projects GDP growth of 2 per cent in 2015, rising to 3 per cent by 2017. Average growth over the forecast period is 0.4 percentage points lower than at the time of the 2014 Medium Term Budget
162 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Policy Statement. Inadequate electricity supply, however, will impose a serious constraint on output and exports over the short term.
The slowdown in economic growth since 2012 has highlighted structural constraints in the domestic economy. Achieving faster sustainable growth and large-scale job creation will require structural shifts in the economy, stronger supply-side value chains, higher exports, moderation in wage increases and, crucially, growing private-sector investment based on confidence in the long-term business environment.
Fiscal constraints mean that transfers to municipalities will grow more slowly in the period ahead than they have in the past. Accordingly, municipalities must renew their focus on core service delivery functions and reduce costs without adversely affecting basic services. Furthermore they must ensure that efficiency gains, eradication of non-priority spending (cost containment measures) and the reprioritisation of expenditure relating to core infrastructure continue to inform the planning framework.
The state of the economy has an adverse effect on the consumers. As a result municipalities’ revenues and cash flows are expected to remain under pressure. Furthermore municipalities should carefully consider affordability of tariff increases, especially as it relates to domestic consumers while considering the level of services versus the associated cost.
The 2015/16 MTREF is an important milestone for the current Municipal Council bearing in mind the council commenced their term with a deficit on the budget for operations, accumulated debts under investment in repairs and maintenance of infrastructure amongst other challenges.
During the recently held strategic session certain key issues were raised that required to be incorporated in the 2015/16 MTREF, the issues included amongst others:
Ageing infrastructure Water Treatment Plant & Water Reticulation
Problems with water quality due to seasonal algae
High mast lights and street lights not functional
Our roads are not good 185km roads that are still gravel.
Skills shortage
Inadequate income for operational purposes
The ongoing difficulties in the national and local economy
The increased cost of bulk water and electricity (due to tariff increases from Rand Water and Eskom), which is placing upward pressure on service tariffs to residents. Continuous high tariff increases are not sustainable - as there will be point where services will no-longer be affordable;
Inability to attract and sustain investors
Poor relationship between the Municipality and Business community
Interruption of water supply, electricity supply and refuse removal Challenges identified above should be confronted with velocity of a bull. Failure to do so would create pitfalls that would be insurmountable where in some instances public representatives would be treated like lepers within the community they ought to serve. The municipality undertook the project of revenue enhancement, data cleansing as well as to implement credit control which assisted in ensuring the completeness of the revenue generated from service charges. Personnel will be appointed to test completeness and accuracy of revenue as well as to provide assurance. The effective implementation of credit control still remains a challenge due to lack of adequate resources to ensure continuous implementation. The municipality has
163 | P a g e F I N A L I D P 2 0 1 5 / 1 6
further appointed a service provider to deal with revenue loss from sales of electricity through on line meters as well as to deal with revenue loss from sale of water through the water demand and conservation programme.
The Municipality must strive, within its financial and administrative capacity, to ensure that the provision of services to communities in a sustainable manner. The following budget principles and guidelines directly informed the compilation of the 2015/16 MTREF:
The 2014/15 Adjustments Budget priorities and targets, as well as the base line allocations contained in that Adjustments Budget were adopted as the upper limits for the new baselines for the 2015/16 annual budget;
The 2013/14 audit come
The 2014/15 mid-year assessment
Annual Strategic planning session outcome
Vision 2030 in the National Development Plan (NDP)
Tariff and property rate increases should be affordable and should generally not exceed inflation as measured by the CPI, except where there are price increases in the inputs of services that are beyond the control of the municipality, for instance the cost of bulk water and electricity. In addition, tariffs need to remain or move towards being cost reflective, and should take into account the need to address infrastructure backlogs;
There will be no budget allocated to national and provincial funded projects unless the necessary grants to the municipality are reflected in the national and provincial budget and have been gazetted as required by the annual Division of Revenue Act;
7.3. 2015/16 MEDIUM-TERM REVENUE & EXPENDITURE FRAMEWORK In view of the aforementioned, the following table is a consolidated overview of the proposed 2015/16 Medium-term Revenue and Expenditure Framework: Table 1 Consolidated Overview
MP305 Lekwa - Table A4 Budgeted Financial Performance (revenue and expenditure)
Description 2011/12 2012/13 2013/14
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Budget
Year
2015/16
Budget Year
+1 2016/17
Budget
Year +2
2017/18
Total Revenue (excluding
capital transfers and
343 115 431 172 422 526 490 216 536 829 641 288 698 413 763 739
Total Expenditure 464 933 628 264 617 479 683 050 633 739 730 140 753 301 781 990
Surplus/(Deficit) (121 818) (197 092) (194 953) (192 834) (96 910) (88 851) (54 888) (18 251)
Current Year 2014/152015/16 Medium Term Revenue &
Expenditure Framework
The operating income has increased from R 343 million in the 2011/12 financial period to R 641 million in the 2015/16 financial period. This reflects a growth of R 298 million over the 5 years period. The revenue is still expected to increase to R 763 million by 2017/18 financial period. The
164 | P a g e F I N A L I D P 2 0 1 5 / 1 6
expenditure has also seen an increase of R 266 million over the past 5 year period from R 464 million in the 2011/12 financial period to R 730 million in the 2015/16 financial period. The expenditure is expected to increase with an additional R 51 million by 2017/18. The operating deficit has also decreased with R 33 million over the 5 year period from R 121 million to R 88 million in the 2015/16 financial year and subsequently it is further expected to decrease to R 18 million by 2017/18 MTREF. This is possible through vigorous financial management which include revenue and expenditure management whilst ensuring that operations are economical, effective and efficient.
The capital budget of R 32 million is funded mostly from grants & subsidies received from National Government. The capital budget has declined over the years from R 44 million in the 2011/12 financial period. This is further influenced by the reduction in allocation of grants from the National Government as well as the municipality to generate adequate surpluses which could be utilised as reserves for funding internal projects. The reduction in the capital grant allocations has further placed a burden in the Municipality’s operations thus resulting in service delivery backlogs. For cash generating assets the Municipality should consider raising a debt for acquiring and financing these sorts of assets as the revenue generated can be utilised towards servicing this debt.
7.4. OPERATING REVENUE FRAMEWORK
The Municipality continues improving the quality of services provided to its citizens it needs to generate the required revenue. In these tough economic times strong revenue management is fundamental to the financial sustainability of every municipality. The reality is that we are faced with development backlogs and poverty. The expenditure required to address these challenges will inevitably always exceed available funding; hence difficult choices have to be made in relation to tariff increases and balancing expenditures against realistically anticipated revenues. Since the operating overheads exceeds the revenue it is crucial for the Municipality to start operating differently and investing more time and efforts in other revenue generating mechanisms.
Municipal revenues and cash flows are expected to remain under pressure in 2015/16 due to the state of the economy; therefore the municipality should adopt a conservative approach when projecting their expected revenues and cash receipts. Municipality should also pay particular attention to managing all revenue and cash streams effectively, by paying particular attention to their revenue management processes and procedures.
The total anticipated revenue to be generated amounts to R 641 287 674 which will increase to R 763 739 406 in the 2017/18 financial period. The increase in revenue is attributable to the implementation in the new general valuation roll, expected in growth in electricity from the installation of on line meters, as well as the increased revenue from the agencies fees. The other revenue mix does not yield a significant growth.
The municipality undertook the project of revenue enhancement, data cleansing as well as to implement credit control which assisted in ensuring the completeness of the revenue generated from service charges. Personnel will be appointed to test completeness and accuracy of revenue as well as to provide assurance. The effective implementation of credit control still remains a challenge due to lack of adequate resources to ensure continuous implementation. It should be noted that electricity contributes a large portion to the total municipal revenue and the Municipality cannot always rely on revenue from sale of electricity as the only means of funding the budget. The current high increases in tariffs, the use of alternative energy sources as well as the rolling load shedding will affect the revenue realised from this revenue source.
165 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Adequate revenue management remains an integral part of the operations of the Municipality as this will assist in rendering of decent level of services to the community of Lekwa. The Municipality should further investigate other means and mechanism of ensuring that all services rendered by the Municipality yield significant revenue to ensure that operations are continuous.
The municipality’s revenue strategy is built around the following key components:
National Treasury’s guidelines and macroeconomic policy;
Growth in the Municipality and continued economic development through private sector investment;
Efficient revenue management, which aims to ensure a 80 per cent annual collection rate for key service charges;
Electricity tariff increases as approved by the National Electricity Regulator of South Africa (NERSA);
Achievement of full cost recovery of specific user charges especially in relation to trading services;
Revenue enhancement Strategy:
The municipality’s Property Rates Policy approved in terms of the Municipal Property Rates Act, 2004 (Act 6 of 2004) (MPRA);
Revenue management policies of the Municipality
Continuous implementation of credit control and debt collection.
166 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Summary of revenue classified by main revenue source
MP305 Lekwa - Table A4 Budgeted Financial Performance (revenue and expenditure)
Description 2011/12 2012/13 2013/14
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Budget
Year
2015/16
Budget
Year +1
2016/17
Budget
Year +2
2017/18
Revenue By Source
Property rates 37 301 66 365 38 731 52 600 60 540 64 778 69 312 74 164
Serv ice charges - electricity
rev enue 136 699 174 886 180 418 227 984 227 984 321 798 361 057 405 106
Serv ice charges - w ater rev enue 30 862 37 664 32 363 40 978 42 782 45 777 48 981 52 410
Serv ice charges - sanitation
rev enue 21 248 21 707 23 004 24 730 24 499 26 214 28 049 30 012
Serv ice charges - refuse rev enue 9 790 12 164 9 932 13 861 14 037 15 020 16 071 17 196
Rental of facilities and equipment (353) 651 564 595 589 630 675 722
Interest earned - ex ternal
inv estments 726 837 1 299 255 1 018 1 089 1 165 1 247
Interest earned - outstanding
debtors 18 450 14 110 18 273 18 200 24 262 25 960 27 778 29 722
Fines 2 166 271 1 755 2 907 502 544 590 640
Agency serv ices 12 412 18 591 31 283 16 331 48 857 52 277 55 937 59 853
Transfers recognised - operational 73 251 81 942 83 760 90 235 90 235 85 557 87 026 90 755
Other rev enue 563 1 983 1 144 1 540 1 525 1 644 1 771 1 912
Total Revenue (excluding capital
transfers and contributions)
343 115 431 172 422 526 490 216 536 829 641 288 698 413 763 739
Current Year 2014/152015/16 Medium Term Revenue
& Expenditure Framework
Revenue generated from rates and services charges forms a significant percentage of the revenue basket for the Municipality. Rates and service charge revenues comprise R 473 million (73.8%) of the total revenue mix. This increases to R 523 million and R 578 million in the respective two outer financial years of the MTREF. A notable trend is the increase in the total percentage revenue generated from rates and sale of electricity which increases from 50 per cent in 2011/12 to 60 per cent in 2015/16. This growth can be mainly attributed to the increased share that the sale of electricity contributes to the total revenue mix, which in turn is due to rapid increases in the Eskom tariffs for bulk electricity.
Property rates contribute 10 per cent or R 64 million rand of the total revenue mix and increases to R 74 million by 2017/18. The other sources of revenue is ‘other revenue’ which consists of various items such as income received from permits and licenses, building plan fees, connection fees, transport fees and advertisement fees. Departments have been urged to review the tariffs of these items on an annual basis to ensure they are cost reflective and market related.
Operating grants and transfers decreased from R 87 million for 2014-15 to R85 million in the 2015/16 financial year and steadily increases to R 90 million by 2015/16. The average growth of 6% over the 201516 MTREF is less than the 14% growth experienced in the 2011-12 MTREF. This is a clear indication that the National Government is advocating to the Municipality that they should not rely on grants received from National Government but should rather strengthen their own internal revenue generating mechanism.
The capital grants and transfer has decreased from R 56 million in 2011/12 to R 30 million in the 2015/16 MTREF. The total growth by 2017/18 is limited to R 3 million.
167 | P a g e F I N A L I D P 2 0 1 5 / 1 6
The following table gives a breakdown of the various operating & capital grants and subsidies allocated to the Municipality over the medium term:
Operating Transfers and Grant Receipts MP305 Lekwa - Supporting Table SA18 Transfers and grant receipts
Description 2011/12 2012/13 2013/14
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Budget
Year
2015/16
Budget
Year +1
2016/17
Budget
Year +2
2017/18
RECEIPTS:
Operating Transfers and Grants
National Government: 73 178 84 124 87 830 87 568 87 568 85 557 87 026 90 755
Local Gov ernment Equitable Share 69 959 79 068 81 320 85 034 85 034 83 027 84 444 88 022
Finance Management 1 713 1 250 1 550 1 600 1 600 1 600 1 625 1 700
Municipal Sy stems Improv ement 1 506 800 890 934 934 930 957 1 033
Other transfers/grants [insert description] – 3 006 4 070
Total Operating Transfers and Grants 73 178 84 124 87 830 87 568 87 568 85 557 87 026 90 755
Capital Transfers and Grants
National Government: 56 621 43 525 84 434 36 684 36 684 30 851 34 970 33 456
Municipal Infrastructure Grant (MIG) 53 783 41 780 59 004 33 994 33 994 27 978 28 970 30 456
Neighbourhood Dev elopment Partnership 1 745
Intergrated Electrification Programme 1 389 1 500 1 500 1 700 6 000 3 000
Ex panded Public Works Programme 1 449 1 190 1 190 1 173
Other capital transfers/grants [insert desc] 25 430
Provincial Government: – – – – 20 000 – – –
Human Settlement 20 000
District Municipality: – – – – 2 000 – – –
Rising Main Project 2 000
Other grant providers: – – – – – – – –
Total Capital Transfers and Grants 56 621 43 525 84 434 36 684 58 684 30 851 34 970 33 456
TOTAL RECEIPTS OF TRANSFERS & GRANTS129 799 127 649 172 264 124 252 146 252 116 408 121 996 124 211
References
Current Year 2014/152015/16 Medium Term Revenue &
Expenditure Framework
Tariff-Setting Tariff-setting is a pivotal and strategic part of the compilation of any budget. When rates, tariffs and other charges were revised, local economic conditions, input costs and the affordability of services were taken into account to ensure the financial sustainability of the Municipality. The municipality further made use of the tariff models that was provided by SALGA.
National Treasury continues to encourage municipalities to keep increases in rates, tariffs and other charges as low as possible. Municipalities must justify in their budget documentation all increases in excess of the 6 per cent upper boundary of the South African Reserve Bank’s inflation target. Excessive increases are likely to be counterproductive, resulting in higher levels of non-payment.
The percentage increases of Eskom 14.25% bulk tariffs are far beyond the mentioned inflation target. Given that these tariff increases are determined by external agencies, the impact they have
168 | P a g e F I N A L I D P 2 0 1 5 / 1 6
on the municipality’s electricity and in these tariffs are largely outside the control of the Municipality. Discounting the impact of these price increases in and the fact that Municipality are only allowed and increase of up to 12% which result in lower consumer tariffs, this will erode the Municipality’s future financial position and viability hence the municipality finds itself in the current predicament it is in now.
It must also be appreciated that the consumer price index, as measured by CPI, is not a good measure of the cost increases of goods and services relevant to municipalities. The basket of goods and services utilised for the calculation of the CPI consist of items such as food, petrol and medical services, whereas the cost drivers of a municipality are informed by items such as the cost of remuneration, bulk purchases of electricity and water, petrol, diesel, chemicals, cement etc. The current challenge facing the Municipality is managing the gap between cost drivers and tariffs levied, as any shortfall must be made up by either operational efficiency gains or service level reductions.
2015/16 – 2017/18 Proposed tariff increases are as follows:
2015/16 2016/17 2017/18
Rates 6% 6% 6%
Cleansing 6% 6% 6%
Sewer 6% 6% 6%
Water Consumption 6% 6% 6%
Water Basic 6% 6% 6%
Electricity 12.2% 12.2% 12.2%
Property Rates Property rates cover the cost of the provision of general services. Determining the effective property rate tariff is therefore an integral part of the municipality’s budgeting process. National Treasury’s MFMA Circular No. 51 deals, inter alia with the implementation of the Municipal Property Rates Act, with the regulations issued by the Department of Co-operative Governance. These regulations came into effect on 1 July 2009 and prescribe the rate ratio for the non-residential categories, public service infrastructure and agricultural properties relative to residential properties to be 0.25:1. The implementation of these regulations was done in the previous budget process and the Property Rates Policy of the Municipality has been amended accordingly. The following stipulations in the Property Rates Policy are highlighted:
The first R15 000 of the market value of a property used for residential purposes is excluded from the rate-able value (Section 17(h) of the MPRA).
169 | P a g e F I N A L I D P 2 0 1 5 / 1 6
For pensioners, physically and mentally disabled persons, a maximum/total rebate of 40 per cent will be granted to owners of rate-able residential property if the total gross income of the applicant and/or his/her spouse, if any, does not to exceed R 3600.
The Municipality may award a 100 per cent grant-in-aid on the assessment rates of rate-able properties of certain classes such as registered welfare organizations, institutions or organizations performing charitable work, sports grounds used for purposes of amateur sport. The owner of such a property must apply to the Executive Mayor or the Municipal Manager in the prescribed format for such a grant.
The categories of rate-able properties for purposes of levying rates and the proposed rates for the 2015/16 financial year based on a 6 per cent increase from 1 July 2015 is contained below:
CATEGORY
IMPERMISSIBLE PER PROPERTY
Current Tariff 1 July 2014 TARIFF CENTS IN THE RANDS
Proposed Tariff 1 July 2015 TARIFF CENTS IN THE RANDS
Residential 1 (houses) R 15000 0.008265 0.009844
Residential 2 (sectional share titles)
0.008265 0.009844
Multi-purpose use 0.009641 0.011483
Farms/agricultural – business
0.002066 0.002461
Agricultural properties 0.002066 0.002461
Industrial 0.009641 0.011483
Residential 4 (business) 0.009641 0.011483
Government (exl 20% rebate)
0.011191 0.013328
Public service infrastructure (psi)
0.002066 0.002461
Public benefit organization
0.002066 0.002461
Sale of Water and Impact of Tariff Increases South Africa faces similar challenges with regard to water supply as it did with electricity, since demand growth outstrips supply. Consequently, National Treasury is encouraging all municipalities to carefully review the level and structure of their water tariffs to ensure:
Water tariffs are fully cost-reflective – including the cost of maintenance and renewal of purification plants, water networks and the cost associated with reticulation expansion;
Water tariffs are structured to protect basic levels of service and ensure the provision of free water to the poorest of the poor (indigent); and
Water tariffs are designed to encourage efficient and sustainable consumption. In addition National Treasury has urged all municipalities to ensure that water tariff structures are cost reflective.
170 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Better maintenance of infrastructure, installation of bulk water infrastructure, replacement of AC pipes in Lekwa Local Municipality, the water conservation & demand management as well cost-reflective tariffs will ensure that the supply challenges are managed in future to ensure sustainability. A tariff increase of 6% per cent from 1 July 2015 for water is proposed. In addition 6 kℓ water per 30-day period will again be granted free of charge to all registered indigent households. A summary of the proposed tariffs for households (residential) and non-residential are as follows:
2 0 15- 16 TA R IFFS -
A N N EX U R E C SC A LE
WATER
BASIC WATER 27.94 1.68 29.62 1.78 31.39 1.88 33.28
DOMESTIC BUSINESS 1-10 KL 4.80 0.29 5.09 0.31 5.40 0.32 5.72
70101 11-25KL 5.95 0.36 6.31 0.38 6.69 0.40 7.09
70201 26-50 KL 8.63 0.52 9.15 0.55 9.69 0.58 10.28
51-9999KL 12.16 0.73 12.89 0.77 13.67 0.82 14.49
SCHOOLS & GOVERNMENT 1-10 KL 4.80 0.29 5.09 0.31 5.40 0.32 5.72
70701 11-25 KL 5.95 0.36 6.31 0.38 6.69 0.40 7.09
26-9999 KL 8.63 0.52 9.15 0.55 9.69 0.58 10.28
FARMS INSIDE MUNICIPAL BORDERS1-10 KL 5.30 0.32 5.62 0.34 5.96 0.36 6.31
70501 11-25KL 6.59 0.40 6.98 0.42 7.40 0.44 7.85
26-50 KL 9.75 0.59 10.34 0.62 10.96 0.66 11.61
51-9999KL 13.81 0.83 14.64 0.88 15.52 0.93 16.45
INDUSTRIES 070301 5.96 0.36 6.32 0.38 6.70 0.40 7.10
MORGENZON 1-10 KL 4.80 0.29 5.09 0.31 5.40 0.32 5.72
11-25KL 5.95 0.36 6.31 0.38 6.69 0.40 7.09
26-50 KL 8.63 0.52 9.15 0.55 9.69 0.58 10.28
51-9999KL 12.16 0.73 12.89 0.77 13.67 0.82 14.49
FREE WATER 6KL 26.82 1.61 28.43 1.71 30.13 1.81 31.94
2 0 14 / 2 0 15 2 0 15/ 2 0 16 2 0 16 / 2 0 17 2 0 17/ 2 0 18
7.50% 106.00% 106.00% 106.00%
Sale of Electricity and Impact of Tariff Increases NERSA has announced the revised bulk electricity pricing structure. A 14.24 per cent increase in the Eskom bulk electricity tariff to municipalities will be effective from 1 July 2015. Considering the Eskom increases, the consumer tariff had to be increased by 12.20 per cent to offset the additional bulk purchase cost from 1 July 2015. Furthermore, it should be noted that given the magnitude of the tariff increase, it is expected to depress growth in electricity consumption, which will have a negative impact on the municipality’s revenue from electricity. Registered indigents will again be granted 50 kWh per 30-day period free of charge.
171 | P a g e F I N A L I D P 2 0 1 5 / 1 6
It should further be noted that NERSA has advised that Municipality should continue using the inclining block tariff structure. The effect thereof will be that the higher the consumption, the higher the cost per kWh. The aim is to subsidise the lower consumption users (mostly the poor). The inadequate electricity bulk capacity and the impact on service delivery and development remains a challenge to the Municipality. Most of the suburbs and inner city reticulation network was designed or strengthened in the early 1980’s with an expected 20-25 year life-expectancy. The upgrading of the Municipality’s electricity network has therefore become a strategic priority, especially the substations, transmission lines as well as upgrading from 55 MVA to 100 MVA. The approved budget for the Electricity Division can only be utilised for certain committed upgrade projects and to strengthen critical infrastructure. It is estimated that special funding for electricity bulk infrastructure to the amount of R 270 million per year for the next three years will be necessary to steer the Municipality out of this predicament. Owing to the high increases in Eskom’s bulk tariffs, it is clearly not possible to fund these necessary upgrades through increases in the municipal electricity tariff – as the resultant tariff increases would be unaffordable for the consumers. It is therefore proposed that the taking up of loans as a strategy for funding of the infrastructure be considered and approved to spread the burden over the life span of the assets.
172 | P a g e F I N A L I D P 2 0 1 5 / 1 6
The following table shows the impact of the proposed increases in electricity tariffs.
2014/15
Budget
2015/16
Budget
1+ 2016/17
Budget
2+ 2017/18
Budget
ELECTRICITY DOMESTICS 107.39% 112.20% 114.24% 114.24%
Indigents (Low prepaid) 31.9 35.79R 40.89R 46.71R
BLOCK TARIFF 0-50 0.72R 0.79R 0.90R 1.03R
BLOCK TARIFF 51-350 0.91R 1.00R 1.14R 1.31R
BLOCK TARIFF 351-600 1.23R 1.41R 1.61R 1.84R
BLOCK TARIFF 601+ 1.43R 1.66R 1.90R 2.17R
Prepaid & Conventional ( High prepaid) 85.50R 95.93R 109.59R 125.20R
BLOCK TARIFF 0-50 0.72R 0.79R 0.90R 1.03R
BLOCK TARIFF 51-350 0.91R 1.00R 1.14R 1.31R
BLOCK TARIFF 351-600 1.23R 1.41R 1.61R 1.84R
BLOCK TARIFF 601+ 1.43R 1.66R 1.90R 2.17R
FREE ELECTRICITY 50 KWH 36.13 40.54R 46.31R 52.91R
NGO, SPORT CLUB, PRE PAID BASIC CHARGE 85.50R 40.65R 46.44R 53.05R
BLOCK TARIFF 0-50 0.72R 0.79R 0.90R 1.03R
BLOCK TARIFF 51-350 0.91R 1.00R 1.14R 1.31R
BLOCK TARIFF 351-600 1.23R 1.41R 1.61R 1.84R
BLOCK TARIFF 601+ 1.43R 1.66R 1.90R 2.17R
Prepaid & Conventional (single phase) 0-16kVA
Energy Charge (Low Demand season) 138.00R 154.84R 176.88R 202.07R
Energy Charge (High Demand season) 172.00R 192.98R 220.46R 251.86R
Basic Charge 212.07R 237.94R 271.83R 310.53R
Prepaid & Conventional (2 & 3 phase)
Energy Charge (Low Demand season) 135.84R 152.41R 174.12R 198.91R
Energy Charge (High Demand season) 172.00R 192.98R 220.46R 251.86R
Basic Charge 483.00R 541.93R 619.10R 707.26R
INDUSTRIAL TARIFFS
Low Voltage Use Below 1MVA
Energy Charge (Low Demand season) 55.26R 62.00R 70.83R 80.92R
Energy Charge (High Demand season) 80.00R 89.76R 102.54R 117.14R
Demand Charge (Low Demand season) 176.00R 197.47R 225.59R 257.72R
Demand Charge (High Demand season) 183.20R 205.55R 234.82R 268.26R
Basic Charge 3 359.21R 3 769.03R 4 305.74R 4 918.88R
High Voltage Use Above 1MVA
Energy Charge (Low Demand season) 49.45R 55.48R 63.38R 72.41R
Energy Charge (High Demand season) 72.35R 81.18R 92.74R 105.94R
Demand Charge (Low Demand season) 173.42R 194.58R 222.29R 253.94R
Demand Charge (High Demand season) 183.20R 205.55R 234.82R 268.26R
Basic Charge 3 359.21R 3 769.03R 4 305.74R 4 918.88R
Current Proposed Year MTREF
173 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Sanitation and Impact of Tariff Increases A tariff increase of 6 per cent for sanitation from 1 July 2015 is proposed.
2015-16 TARIFFS - ANNEXURE C SCALE
SEWERAGE
DOMESTIC, BUSINESS 133.62 8.02 141.64 8.50 150.13 9.01 159.14
SAKHILE 75.34 4.52 79.86 4.79 84.66 5.08 89.74
MORGENZON 48.90 2.93 51.84 3.11 54.95 3.30 58.25
INDUSTRIAL - ADDITIONAL SEWERAGE PER KL 5.42 0.33 5.74 0.34 6.09 0.37 6.45
2014/201
5 2015/2016 2016/2017 2017/2018
106.00% 106.00% 106.00%
Waste Removal and Impact of Tariff Increases Currently solid waste removal is not operating effectively, efficiently and economically. It is widely accepted that the rendering of this service should at least break even, which is currently not the case. The Municipality will have to implement a solid waste strategy to ensure that this service can be rendered in a sustainable manner over the medium to long-term. The main contributors to this deficit are repairs and maintenance on vehicles, increases in the employee related cost (overtime). A 6 per cent increase in the waste removal tariff is proposed from 1 July 2015. Higher increases will not be viable in 2015/16 owing to the significant increases implemented in previous financial years as well as the overall impact of higher than inflation increases of other services.
2015-16 TARIFFS - ANNEXURE C
REFUSE
DOMESTIC - STANDERTON 85.09 5.11 90.20 5.41 95.61 5.74 101.35
DOMESTIC - SAKHILE 60.80 3.65 64.45 3.87 68.32 4.10 72.42
DOMESTIC - MORGENZON 59.67 3.58 63.25 3.79 67.04 4.02 71.07
BUSINESS - STANDERTON 222.88 13.37 236.26 14.18 250.43 15.03 265.46
BUSINESS - MORGENZON 118.59 7.12 125.70 7.54 133.25 7.99 141.24
BULK 1256.08 75.36 1331.44 79.89 1411.33 84.68 1496.01
VACUUM TANKS PER 5KL OR PART THEREOF40.22 2.41 42.63 2.56 45.19 2.71 47.90
VACCUM TANKS BASIC CHARGE 283.58 17.01 300.59 18.04 318.63 19.12 337.75
2014/2015 2015/2016 2016/2017 2017/2018
7.50% 106.00% 106.00% 106.00%
Overall impact of tariff increases on households The following table shows the overall expected impact of the tariff increases on a large and small household, as well as an indigent household receiving free basic services.
174 | P a g e F I N A L I D P 2 0 1 5 / 1 6
MP305 Lekwa - Supporting Table SA14 Household bills
2011/12 2012/13 2013/142015/16 Medium Term Revenue & Expenditure
Framework
Audited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Budget
Year
2015/16
Budget
Year
2015/16
Budget
Year +1
2016/17
Budget
Year +2
2017/18
Rand/cent % incr.
Monthly Account for Household
- 'Middle Income Range'
Rates and services charges:
Property rates 404.48 106.18 111.55 119.92 119.92 106.0% 127.12 145.22 165.90
Electricity : Basic lev y 64.25 71.34 76.55 82.20 82.20 112.2% 92.23 105.37 120.37
Electricity : Consumption 940.50 1 045.00 1 121.29 1 204.15 1 204.15 112.2% 1 351.05 1 543.44 1 763.23
Water: Basic lev y 23.54 24.61 25.86 27.79 27.79 106.0% 29.46 33.66 38.45
Water: Consumption 157.68 166.80 175.24 188.38 188.38 106.0% 199.69 228.12 260.61
Sanitation 111.96 117.71 123.67 132.94 132.94 106.0% 140.92 160.98 183.91
Refuse remov al 49.23 57.48 60.39 64.92 64.92 106.0% 68.81 78.61 89.81
sub-total 1 751.64 1 589.12 1 694.54 1 820.31 1 820.31 10.4% 2 009.28 2 295.40 2 622.27
VAT on Serv ices
Total large household bill: 1 751.64 1 589.12 1 694.54 1 820.31 1 820.31 10.4% 2 009.28 2 295.40 2 622.27
% increase/-decrease (9.3%) 6.6% 7.4% – 10.4% 14.2% 14.2%
Monthly Account for Household
- 'Affordable Range'
Rates and services charges:
Property rates 288.92 75.84 79.64 85.61 85.61 106.0% 90.75 103.67 118.43
Electricity : Basic lev y 64.25 71.34 76.55 82.20 82.20 112.2% 92.23 105.37 120.37
Electricity : Consumption 445.50 495.00 531.14 570.39 570.39 112.2% 639.97 731.11 835.21
Water: Basic lev y 23.54 24.61 25.86 27.79 27.79 106.0% 29.46 33.66 38.45
Water: Consumption 124.83 132.05 138.73 149.14 149.14 106.0% 158.08 180.60 206.31
Sanitation 111.96 117.71 123.67 132.94 132.94 106.0% 140.92 160.98 183.91
Refuse remov al 49.23 57.48 60.39 64.92 64.92 106.0% 68.81 78.61 89.81
sub-total 1 108.23 974.03 1 035.96 1 112.99 1 112.99 9.6% 1 220.23 1 393.99 1 592.49
VAT on Serv ices
Total small household bill: 1 108.23 974.03 1 035.96 1 112.99 1 112.99 9.6% 1 220.23 1 393.99 1 592.49
% increase/-decrease (12.1%) 6.4% 7.4% – 9.6% 14.2% 14.2%
-1.53 0.17 -1.00 Monthly Account for Household
- 'Indigent' Household receiving
Rates and services charges:
Property rates 173.35 182.03 192.22 206.63 206.63 106.0% 219.03 250.22 285.85
Electricity : Basic lev y 64.25 74.39 79.62 85.50 85.50 112.2% 95.93 109.60 125.20
Electricity : Consumption – 112.2% – – –
Water: Basic lev y 23.54 24.61 25.86 – 106.0% – – –
Water: Consumption 56.42 59.22 62.54 67.16 67.16 106.0% 71.19 81.32 92.90
Sanitation 111.96 117.71 124.30 133.49 133.49 106.0% 141.50 161.65 184.66
Refuse remov al 45.58 57.48 60.39 – 106.0% – – –
sub-total 475.10 515.44 544.92 492.78 492.78 7.1% 527.65 602.79 688.63
VAT on Serv ices 34.86 36.97
Total small household bill: 509.96 552.41 544.92 492.78 492.78 7.1% 527.65 602.79 688.63
% increase/-decrease 8.3% (1.4%) (9.6%) – 7.1% 14.2% 14.2%
Description
Current Year 2014/15
175 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Operating Expenditure Framework
The budget expenditure framework for the 2015/16 budget is informed by the following:
Repairs and maintenance backlogs;
Balancing the budget (operating expenditure should not exceed operating revenue unless there are existing uncommitted cash-backed reserves to fund any deficit);
Funding of the budget over the medium-term as informed by Section 18 and 19 of the MFMA;
Strict adherence to the principle of no project plans no budget. If there is no business plan no funding allocation can be made.
Funding the capital budget and other core services by operational gains and efficiencies. The total anticipated expenditure to be incurred amounts to R 730 138 719.
In line with MFMA circular 55 & 70 the municipality is urged to step up its efforts to combat waste, inefficiency and pay special attention to cost containing measures and controlling unnecessary spending on nice-to-have items and non-essential activities. This should be done in conjunction with the cabinet resolution of the 23th October 2013 that cost containment measures must be implemented to eliminate waste, reprioritize spending and ensure savings on six focus areas namely, consultancy fees, no credit cards, travel and related costs, advertising, catering and events costs as well as costs for accommodation. Due to the financial constraints of the municipality though a provision has been made for depreciation the municipality does not have sufficient cash to replace the aging assets after the depreciation has been written off. In terms of the norms and standard set by National Treasury the municipality should provide at least 8% for Repairs and Maintenance and at least 40% of the capital budget should be towards the renewal of existing assets.
MP305 Lekwa - Table A4 Budgeted Financial Performance (revenue and expenditure)
Description 2011/12 2012/13 2013/14
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Budget
Year
2015/16
Budget
Year +1
2016/17
Budget
Year +2
2017/18
Expenditure By Type
Employ ee related costs 101 586 114 990 117 725 127 068 123 424 145 767 155 136 165 130
Remuneration of councillors 7 889 8 417 9 367 10 503 10 503 11 136 11 136 11 136
Debt impairment 39 082 77 099 47 227 90 818 68 362 68 915 70 983 73 467
Depreciation & asset 60 891 121 508 128 005 139 196 115 520 95 530 98 396 101 840
Finance charges 1 176 14 219 16 757 764 771 786 810 838
Bulk purchases 167 691 186 519 198 026 213 085 213 085 242 748 250 030 258 781
Other materials 4 154 2 995 4 798 5 089 5 820 5 296 5 472 5 689
Contracted serv ices 21 854 23 250 23 224 26 340 39 019 97 325 98 520 99 835
Transfers and grants 20 898 41 647 14 535 11 393 5 105 2 108 2 171 2 247
Other ex penditure 39 713 37 621 57 814 58 793 52 129 60 528 60 646 63 026
Loss on disposal of PPE
Total Expenditure 464 933 628 264 617 479 683 050 633 739 730 140 753 301 781 990
Current Year 2014/152015/16 Medium Term Revenue &
Expenditure Framework
176 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Employee related Cost The employee related costs have increased by R 22 million in order to fund technical or critical positions that are vacant. The salary increase negotiations are still underway, a provision for salary increases of 6.8% though National Treasury is proposing a 5.4% increase which is linked to inflation. The past salary increase have not been less than 6% or higher than 10% in the recent years. Any difference in the salary increase that is below 6.8% or higher than 6.8% will be provided for in the 2015-16 adjustment budgets. Furthermore it should be noted that the filling of vacant positions also attracts other cost associated with filling of those which includes but not limited to advertising cost, office equipment and office space. While priorities will still be given to position that have in impact on service delivery, preference will also be given to positons that will reduce overtime. The current Municipal structure in order to ensure the following:
1. The structure is still relevant 2. The structure is responsive to service delivery 3. Identify any gaps or areas of over staffing
The overtime worked by employees continuous to be a challenge that the municipality is faced with. Employees continue to work in excess of 40 hours per month which is in contravention of the collective agreements and this further poses further risk to the municipality which includes but not limited to financial loss suffered for irregular payments of overtime, due to fatigue employees may be injured whilst at work. The provision for overtime is R 10 million for the 2015-16 financial period which is expected to increase to R 12 million in the 2017-18 financial period. The allocation shows a decrease when compared to the 2011-12 outcomes as well as the adjustment budget of 2014-15. The low allocation is mainly based on the introduction of job cards which employees would have to complete every day as well as ensuring that employees are discouraged from working overtime in excess of 40 hours per month.
The Municipality has provided R 21.7 million to fill critical and vacant position which will have a direct impact on service delivery, efficient, and optimal administration of the Municipality. There are 71 vacant and critical position that require to be filled urgently. The recruitment turnaround time needs to be improved as some of the positions have been vacant in excess of 12 months.
The Municipality has provided R 2.5 million for the employment of temporary workers, of which they should either be confirmed as permanent workers or laid off in terms of the amended labor relations act.
An 8% increase has been provided for the Council Remuneration in line with the Officer Bearers Act as well as the recent Council Upper Limit Gazette.
177 | P a g e F I N A L I D P 2 0 1 5 / 1 6
MP305 Lekwa - Supporting Table SA22 Summary councillor and staff benefits
Summary of Employee and
Councillor remuneration2011/12 2012/13 2013/14
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Budget Year
2015/16
Budget Year
+1 2016/17
Budget Year
+2 2017/18
A B C D E G H I
Councillors (Political Office Bearers plus Other)
Basic Salaries and Wages 4 714 4 375 5 079 6 308 6 308 6 858 6 858 6 858
Pension and UIF Contributions 824 1 055 949 946 946 1 029 1 029 1 029
Medical Aid Contributions 127 191 313 –
Motor Vehicle Allow ance 1 830 1 975 2 107 2 407 2 407 2 407 2 407 2 407
Cellphone Allow ance 387 803 480 669 669 669 669 669
Other benefits and allow ances 6 19 439 173 173 173 173 173
Sub Total - Councillors 7 889 8 417 9 367 10 503 10 503 11 136 11 136 11 136
% increase 6.7% 11.3% 12.1% – – – –
Senior Managers of the Municipality
Basic Salaries and Wages 1 917 5 339 2 741 4 829 5 714 5 372 5 721 6 093
Pension and UIF Contributions 816 922 922 967 1 030 1 097
Medical Aid Contributions 326 326 325 346 368
Motor Vehicle Allow ance 107 228 228 128 136 145
Other benefits and allow ances – 83 88 94
Sub Total - Senior Managers of Municipality1 917 5 339 3 664 6 304 7 190 6 875 7 322 7 798
% increase 178.5% (31.4%) 72.1% 14.0% – 6.5% 6.5%
Other Municipal Staff
Basic Salaries and Wages 48 730 68 156 72 469 74 962 68 434 92 762 98 792 105 213
Pension and UIF Contributions 12 348 16 835 13 972 16 651 15 332 18 627 19 838 21 128
Medical Aid Contributions 5 866 4 747 6 631 6 997 7 183 6 971 7 424 7 906
Ov ertime 13 704 5 127 13 993 10 712 14 214 10 697 11 392 12 133
Motor Vehicle Allow ance 4 894 3 347 3 586 5 730 5 964 4 044 4 307 4 587
Cellphone Allow ance 1 580 155 669 740 115 123 131
Housing Allow ances 381 436 328 405 428 456 485
Other benefits and allow ances 2 464 1 964 2 892 3 496 3 448 3 464 3 690 3 929
Pay ments in lieu of leav e 623 221 – 372 396 422
Long serv ice aw ards 1 192 245 520 1 447 457 1 411 1 502 1 600
Sub Total - Other Municipal Staff 91 781 101 234 114 062 120 991 116 177 138 892 147 920 157 535
% increase 10.3% 12.7% 6.1% (4.0%) – 6.5% 6.5%
Current Year 2014/152015/16 Medium Term Revenue &
Expenditure Framework
178 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Depreciation and Debt Impairment Though this are not cash items all efforts should be made to ensure that this items are cash backed. Debt impairment relates to revenue that could be collected from customer. The debt impairment provision is R 68 million with the view that the current systems put in place to ensure that credit control and debt collections are implemented continuously and without compromise. The provision for debt impairment is based on an average none collection of revenue of 29% of the service charges generated. Depreciations relates to the reduction in the useful life assets over time. The depreciation should be cash backed to allow for the municipality to be to replace the assets once the determined useful life of the assets has been depleted. The depreciation provision is R 95 million. This further indicates that additional provision should be made for the assets renewal as well as repairs and maintenance. Bulk Purchases MP305 Lekwa - Table A4 Budgeted Financial Performance (revenue and expenditure)
Description 2011/12 2012/13 2013/14
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Budget
Year
2015/16
Budget
Year +1
2016/17
Budget
Year +2
2017/18
Expenditure By Type
Bulk purchases 167 691 186 519 198 026 213 085 213 085 242 748 250 030 258 781
Current Year 2014/152015/16 Medium Term Revenue &
Expenditure Framework
Bulk purchases has increased with 44% (R 75 million) from R 167 million in 2011-12 financial period to R 242 million in the 2015-16 financial period. The high increase is mainly on the electricity bulk purchases were Eskom is continuously provided an increase above 6%. Other Materials and Repairs and Maintenance Though the level of inventory has decreased a provision is made to have inventory in hand. A provision for inventory amounting to R 5 million has been made in order to reduce interruption that might arise as a result of delays in procuring materials in instance where there’s a breakdown. Though the operating budget has been reduced immensely but no sufficient provision has been made for repairs and maintenance of the municipal assets. In terms of NT circular 66 and 70 repairs and maintenance as a percentage of PPE (carrying value) should be at 8%. Though the repairs & maintenance should contribute 8% the Though the repairs & maintenance is steadily growing R 15 million in the 2011-12 audit outcome to R 31 million in the 2015-6 budget . The percentage for the 2015/16 budget is below the prescribed norm. The main reason for this non-compliance is the current cash flow problem at the Municipality in terms of which expenditure inclusive of repairs and maintenance has been reduced in line with realistically expected revenue streams. This is not sustainable in the medium to long term and the Municipality needs to address this as matter of urgency.
179 | P a g e F I N A L I D P 2 0 1 5 / 1 6
MP305 Lekwa - Supporting Table SA34c Repairs and maintenance expenditure by asset class
Description 2011/12 2012/13 2013/14
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Budget
Year
2015/16
Budget
Year +1
2016/17
Budget
Year +2
2017/18
Repairs and maintenance expenditure by Asset Class/Sub-class
Infrastructure 8 147 6 919 23 869 9 845 12 585 18 751 17 164 17 159
Infrastructure - Road transport 1 380 557 8 435 1 386 1 685 2 000 – –
Roads, Pavements & Bridges 1 380 557 8 435 1 386 1 685 2 000 – –
Infrastructure - Electricity 3 798 3 413 9 374 5 360 7 800 12 700 12 991 12 841
Transmission & Reticulation 3 474 3 035 8 990 4 440 6 000 9 700 9 991 10 341
Street Lighting 324 378 384 920 1 800 3 000 3 000 2 500
Infrastructure - Water 1 836 2 209 2 197 2 250 2 650 3 551 3 658 3 786
Reticulation 1 836 2 209 2 197 2 250 2 650 3 551 3 658 3 786
Infrastructure - Sanitation 1 132 740 3 863 850 450 500 515 533
Sewerage purification 1 132 740 3 863 850 450 500 515 533
Other assets 7 086 6 678 7 210 7 048 7 368 8 973 8 365 8 907
General v ehicles 3 585 2 466 4 361 3 100 3 088 3 037 3 195 3 563
Specialised v ehicles – – – – – – – –
Plant & equipment 1 590 1 306 1 834 2 004 2 118 2 650 1 937 2 019
Computers - hardw are/equipment 254 13 29 52 30 31 32 33
Furniture and other office equipment 21 4 12 –
Other Buildings 432 336 169 268 255 476 339 357
Other Land 356 1 28 –
Other 848 2 553 816 1 585 1 877 2 780 2 862 2 935
Intangibles 521 260 327 515 545 3 699 3 810 3 944
Computers - softw are & programming 521 260 327 515 545 3 699 3 810 3 944
Other (list sub-class)
Total Repairs and Maintenance Expenditure15 754 13 857 31 406 17 408 20 498 31 423 29 339 30 010
Current Year 2014/152015/16 Medium Term Revenue
& Expenditure Framework
Contracted Services Contracted services amounts to R 97 million include a provision of R 70 million for the repayment of the smart meters. Routine work been outsourced to service providers as well as an absence of service level agreements governing some contracts. This also indicates that the municipality has an over reliance on consultants to perform the routine work. This is also influenced by high vacant positions of personnel in various sections, inadequate competency levels of current employees. Contracts should be reviewed to ensure that there’s value for money and where found lacking contracts need to be terminated or advertised to appoint new service providers. In general Municipalities are required to phase out consultants as far as possible. Furthermore as part of phasing out consultants the municipality should embark on an exercise for skills audit to identify were there are skills gaps and shortages in order to ensure that adequate and relevant capacity is provided to employees. The process of preparing job descriptions, delegations register and procedure manuals is completed as in most cases consultants are used in arears were no specific person is assigned to carry out the specific duties.
180 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Contracted services can be an effective, efficient and economical means of rendering services as this allow for a concentration of skills, professionalism & expertise but the process should be managed closely as to ensure this practice is not perpetuate indefinitely and become costly. Operating Deficit The operating deficit has also decreased with R 33 million over the 5 year period and is further expected to decrease to R 18 million by 2017-18 MTREF.
MP305 Lekwa - Table A4 Budgeted Financial Performance (revenue and expenditure)
Description 2011/12 2012/13 2013/14
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Budget
Year
2015/16
Budget Year
+1 2016/17
Budget
Year +2
2017/18
Total Revenue (excluding
capital transfers and
343 115 431 172 422 526 490 216 536 829 641 288 698 413 763 739
Total Expenditure 464 933 628 264 617 479 683 050 633 739 730 140 753 301 781 990
Surplus/(Deficit) (121 818) (197 092) (194 953) (192 834) (96 910) (88 851) (54 888) (18 251)
Current Year 2014/152015/16 Medium Term Revenue &
Expenditure Framework
It should be noted that it is possible to further reduce the budget without affecting service delivery. This budget should be seen as a survival budget. Unless the municipality can improve its revenue bases the situation will continue to deteriorate. In terms of National Treasury the municipality may budget for operating deficit over the medium term, however this should be temporary circumstances especially in for current implementation of GRAP 17, which may result in increased “depreciation and asset impairment‟ that is not fully accommodated in the municipality’s tariffs and as a result drives the operating budget into deficit. Ideally the operating deficit should be equivalent to the depreciation then gradually be phased off into a moderate surplus in the future. It will take approximately 24 months for the municipality to stabilize the financial position and have at least a funded budget. This will not cover any arrears amounts as well as any additional crisis expenditure (impetuous repairs & maintenance of assets or any other expenditure that is not planned). For the municipality to stabilize the financial situation it will require commitment, dedication from both officials, councilors as well as the communities at large. Provincial Treasury & COGTA have also committed to assisting the municipality in various revenue enhancing strategies. It is also important to have designated personnel assigned specific responsibilities with clear time frames and also to have continuity in administration and leadership positions.
181 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Capital expenditure
Project Description
Total Planned
Expenditure for
2015/2016
Planned Expenditure
for 2016/2017
Planned
Expenditure for
2017/2018
Upgrading of the Standerton Waste
Water Treatment Works 15 000 000.00R 15 000 000.00R 15 000 000.00R
Installation of Bulk Water Infrastructure
and Replacement of AC pipes in Lekwa
Local Municipality 9 000 000.00R 9 000 000.00R 9 933 200.00R
Installation of Boreholes in Lekwa
Municipality in farm areas 1 500 000.00R 1 870 150.00R 2 000 000.00R
Installation of Sanitation services in Rural
areas of Lekwa LM 1 306 150.00R 2 000 000.00R 2 000 000.00R
Electrification of RDP house in Standerton
Extension 8 1 700 000.00R
Development of New Cemetry for Lekwa
LM 623 000.00R
Rehabilitation of River Park 550 000.00R
Electrification of 53 rural houses 1 500 000.00R
Conduct Environmental Impact
Assessment for Development of a New
Cell at Morgenzon Landfill Site 1 000 000.00R
Total 32 179 150.00R 27 870 150.00R 28 933 200.00R
For 2015/16 an amount of R 24 million has been appropriated for the development of infrastructure which represents 74.5 per cent of the total capital budget. In the outer years this amount totals R 24 million, 86.11 per cent and R 24.9 million, 86.17 per cent respectively for each of the financial years. The Municipality continue to invest its resources on Water & Sanitation projects. 74.5% of the 2015-16 budgets is allocated for renewal of existing assets. The allocation towards renewal of existing assets will increase to 86.17% by 2017-18 financial periods. Some of the salient projects to be undertaken over the medium-term includes, amongst others:
Upgrading of the Standerton Waste Water Treatment Works
Installation of Bulk Water Infrastructure and Replacement of AC pipes.
Installation of Boreholes in farm areas
Installation of Sanitation services in rural areas.
Electrification of RDP house in Standerton Extension 8
Development of New Cemetery.
Rehabilitation of River Park
Electrification of 53 rural houses
Conduct Environmental Impact Assessment for Development of a New Cell at Morgenzon Landfill Site
182 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Annual Budget Tables The following pages present the ten main budget tables as required in terms of section 8 of the Municipal Budget and Reporting Regulations. These tables set out the municipality’s 2015/16 budget and MTREF as approved by the Council. Each table is accompanied by explanatory notes on the facing page. MBRR Table A1 - Budget Summary 1. Table A1 is a budget summary and provides a concise overview of the Municipality’s budget
from all of the major financial perspectives (operating, capital expenditure, financial position, cash flow, and MFMA funding compliance).
2. The table provides an overview of the amounts approved by Council for operating performance, resources deployed to capital expenditure, financial position, cash and funding compliance, as well as the municipality’s commitment to eliminating basic service delivery backlogs.
3. Financial management reforms emphasises the importance of the municipal budget being funded. This requires the simultaneous assessment of the Financial Performance, Financial Position and Cash Flow Budgets, along with the Capital Budget.
4. The Cash backing/surplus reconciliation shows that in previous financial years the municipality was not paying much attention to managing this aspect of its finances, and consequently many of its obligations are not cash-backed. These places the municipality in a very vulnerable financial position, as the recent slow-down in revenue collections highlighted. Consequently Council has taken a deliberate decision to ensure adequate cash-backing for all material obligations. This cannot be achieved in one financial year. But over the MTREF there is progressive improvement in the level of cash-backing of obligations. It is anticipated that the goal of having all obligations cash-back will be achieved by 2017/18.
5. Even though the Council is placing great emphasis on securing the financial sustainability of the municipality, this is not being done at the expense of services to the poor.
183 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Description 2011/12 2012/13 2013/14
R thousandsAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Budget
Year
Budget
Year +1
Budget
Year +2
Financial Performance
Property rates 37 301 66 365 38 731 52 600 60 540 64 778 69 312 74 164
Serv ice charges 198 599 246 422 245 717 307 553 309 302 408 808 454 158 504 724
Inv estment rev enue 726 837 1 299 255 1 018 1 089 1 165 1 247
Transfers recognised - operational 73 251 81 942 83 760 90 235 90 235 85 557 87 026 90 755
Other ow n rev enue 33 238 35 606 53 019 39 573 75 735 81 057 86 751 92 849
Total Revenue (excluding capital
transfers and contributions)
343 115 431 172 422 526 490 216 536 829 641 288 698 413 763 739
Employ ee costs 101 586 114 990 117 725 127 068 123 424 145 767 155 136 165 130
Remuneration of councillors 7 889 8 417 9 367 10 503 10 503 11 136 11 136 11 136
Depreciation & asset impairment 60 891 121 508 128 005 139 196 115 520 95 530 98 396 101 840
Finance charges 1 176 14 219 16 757 764 771 786 810 838
Materials and bulk purchases 171 845 189 514 202 824 218 175 218 906 248 044 255 503 264 471
Transfers and grants 20 898 41 647 14 535 11 393 5 105 2 108 2 171 2 247
Other ex penditure 100 648 137 969 128 265 175 950 159 510 226 769 230 149 236 328
Total Expenditure 464 933 628 264 617 479 683 050 633 739 730 140 753 301 781 990
Surplus/(Deficit) (121 818) (197 092) (194 953) (192 834) (96 910) (88 851) (54 888) (18 251)
Surplus/(Deficit) after capital
transfers & contributions
(121 818) (197 092) (194 953) (192 834) (96 910) (88 851) (54 888) (18 251)
Surplus/(Deficit) for the year (121 818) (197 092) (194 953) (192 834) (96 910) (88 851) (54 888) (18 251)
Capital expenditure & funds sources
Capital expenditure 44 115 35 449 – 34 784 78 900 32 179 27 870 28 933
Transfers recognised - capital 40 950 31 212 – 33 484 73 350 29 679 27 870 28 933
Internally generated funds 3 165 4 238 – 1 300 5 550 2 500 – –
Total sources of capital funds 44 115 35 449 – 34 784 78 900 32 179 27 870 28 933
Financial position
Total current assets 76 384 78 726 120 472 130 670 130 670 220 731 280 585 336 402
Total non current assets 1 992 218 1 906 016 1 788 186 1 808 527 1 808 527 1 680 528 1 612 898 1 543 481
Total current liabilities 181 422 278 322 372 817 321 639 321 639 404 595 440 537 435 709
Total non current liabilities 89 260 92 289 101 382 94 269 94 269 111 520 122 672 134 939
Community w ealth/Equity 1 797 920 1 614 132 1 434 460 1 523 288 1 523 288 1 385 144 1 330 274 1 309 235
Cash flows
Net cash from (used) operating 43 310 25 247 60 064 (20 653) (1 156 825) 22 340 54 988 91 186
Net cash from (used) inv esting (35 331) (22 217) (47 105) (34 784) (78 900) (32 179) (27 870) (28 933)
Net cash from (used) financing (1 647) (1 285) (1 102) – – – – –
Cash/cash equivalents at the year end 15 273 17 017 28 874 (25 470) (1 181 449) 27 042 54 159 116 412
Cash backing/surplus reconciliation
Cash and inv estments av ailable 15 273 16 300 29 660 34 922 34 922 51 984 94 964 132 218
Application of cash and inv estments 159 142 251 842 502 229 318 850 318 850 529 730 582 777 641 508
Balance - surplus (shortfall) (143 869) (235 543) (472 569) (283 928) (283 928) (477 746) (487 813) (509 289)
Asset management
Asset register summary (WDV) 1 992 218 1 906 016 1 788 186 1 808 527 1 808 527 1 680 528 1 612 898 1 543 481
Depreciation & asset impairment 60 891 121 508 128 005 139 196 115 520 95 530 98 396 101 840
Renew al of Ex isting Assets – – – 5 000 – 24 000 24 000 24 933
Repairs and Maintenance 15 754 13 857 31 406 17 408 20 498 31 423 29 339 30 010
MP305 Lekwa - Table A1 Budget Summary
Current Year 2014/152015/16 Medium Term Revenue &
Expenditure Framework
184 | P a g e F I N A L I D P 2 0 1 5 / 1 6
MBRR Table A2 - Budgeted Financial Performance (revenue and expenditure by standard classification)
1. Table A2 is a view of the budgeted financial performance in relation to revenue and expenditure per standard classification. The modified GFS standard classification divides the municipal services into 13 functional areas. Municipal revenue, operating expenditure and capital expenditure are then classified in terms if each of these functional areas which enables the National Treasury to compile ‘whole of government’ reports.
2. Note the Total Revenue on this table does not include capital revenues (Transfers recognised – capital) and reconciles to the operating revenue shown on Table A4.
3. Note that as a general principle the revenues for the Trading Services should exceed their expenditures. The table highlights that this is the case for Electricity, Water and Waste water functions, but not the Waste management function. As already noted above, the municipality will be undertaking a detailed study of this function to explore ways of improving efficiencies and provide a basis for re-evaluating the function’s tariff structure.
4. Other functions that show a deficit between revenue and expenditure are being financed from rates revenues and other revenue sources reflected under the Corporate Services.
185 | P a g e F I N A L I D P 2 0 1 5 / 1 6
MP305 Lekwa - Table A2 Budgeted Financial Performance (revenue and expenditure by standard classification)
Standard Classification Description 2011/12 2012/13 2013/14
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Budget
Year
2015/16
Budget
Year +1
2016/17
Budget
Year +2
2017/18
Revenue - Standard
Governance and administration 131 091 164 097 142 694 160 255 175 304 178 399 186 367 197 050
Ex ecutiv e and council 70 044 79 570 81 327 85 053 85 053 83 045 84 463 88 042
Budget and treasury office 60 296 84 118 60 956 73 794 88 861 94 900 101 418 108 488
Corporate serv ices 751 409 411 1 409 1 390 454 486 520
Community and public safety 431 535 1 951 3 093 707 756 809 866
Community and social serv ices (779) 357 293 306 320 342 366 391
Sport and recreation 54 18 9 12 10 10 11 12
Public safety 1 157 160 1 648 2 775 378 404 432 463
Economic and environmental services 12 460 19 554 31 440 18 565 50 732 52 464 56 137 60 067
Planning and dev elopment 10 33 20 1 715 1 721 23 25 27
Road transport 12 450 19 521 31 420 16 850 49 010 52 441 56 112 60 040
Trading services 199 134 246 986 246 441 308 302 310 087 409 668 455 099 505 757
Electricity 137 214 175 388 181 134 228 587 228 759 322 648 361 987 406 127
Water 30 875 37 705 32 365 41 115 42 785 45 780 48 985 52 414
Waste w ater management 21 248 21 718 23 004 24 731 24 499 26 214 28 049 30 012
Waste management 9 798 12 176 9 938 13 869 14 043 15 026 16 078 17 204
Total Revenue - Standard 343 115 431 172 422 526 490 216 536 829 641 288 698 413 763 739
Expenditure - Standard
Governance and administration 176 573 290 555 216 885 274 329 227 324 216 333 224 099 233 251
Ex ecutiv e and council 44 385 45 588 39 019 184 347 147 917 137 568 141 974 147 113
Budget and treasury office 116 236 229 040 162 565 74 827 61 154 60 552 63 105 66 069
Corporate serv ices 15 951 15 927 15 301 15 155 18 252 18 213 19 020 20 069
Community and public safety 37 091 38 333 35 524 37 491 41 205 38 511 40 722 43 544
Community and social serv ices 13 599 14 662 12 774 14 019 16 970 13 176 14 164 15 182
Sport and recreation 6 982 7 334 7 044 7 967 7 341 6 950 7 319 7 971
Public safety 15 712 15 804 15 446 12 632 16 606 15 069 15 718 16 650
Housing 6 7 31 2 872 83 3 106 3 305 3 517
Health 792 527 229 – 206 210 216 224
Economic and environmental services 21 039 21 416 31 613 36 699 28 481 30 192 28 836 30 621
Planning and dev elopment 332 179 1 042 5 449 4 414 7 368 7 830 8 325
Road transport 20 707 21 237 30 571 31 250 24 067 22 825 21 006 22 296
Trading services 230 230 277 960 333 456 334 531 336 729 445 103 459 643 474 574
Electricity 180 683 201 554 227 501 244 286 249 133 356 103 364 976 375 045
Water 26 846 32 002 31 171 46 684 46 417 46 096 47 716 49 599
Waste w ater management 9 651 9 481 12 522 21 046 18 617 20 418 21 343 22 376
Waste management 13 051 34 923 62 263 22 515 22 562 22 487 25 607 27 554
Total Expenditure - Standard 464 933 628 264 617 479 683 050 633 739 730 140 753 301 781 990
Surplus/(Deficit) for the year (121 818) (197 092) (194 953) (192 834) (96 910) (88 851) (54 888) (18 251)
Current Year 2014/152015/16 Medium Term Revenue &
Expenditure Framework
186 | P a g e F I N A L I D P 2 0 1 5 / 1 6
1. Table A3 is a view of the budgeted financial performance in relation to the revenue and expenditure per municipal vote. This table facilitates the view of the budgeted operating performance in relation to the organisational structure of the Municipality. This means it is possible to present the operating surplus or deficit of a vote.
MP305 Lekwa - Table A3 Budgeted Financial Performance (revenue and expenditure by municipal vote)
Vote Description 2011/12 2012/13 2013/14
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Budget
Year
2015/16
Budget
Year +1
2016/17
Budget
Year +2
2017/18
Revenue by Vote
Vote 1 - Council & Ex ecutiv e 70 044 79 570 81 327 85 053 85 053 83 045 84 463 88 042
Vote 2 - Budget & Treasury 60 296 84 118 60 956 73 794 88 861 94 900 101 418 108 488
Vote 3 - Corporate 751 409 411 1 409 1 390 454 486 520
Vote 4 - Community Serv ices 431 535 1 951 3 093 707 756 809 866
Vote 5 - Roads 12 450 19 521 31 420 16 850 49 010 52 441 56 112 60 040
Vote 6 - Planning & Dev elopment 10 33 20 1 715 1 721 23 25 27
Vote 7 - Electricity 137 214 175 388 181 134 228 587 228 759 322 648 361 987 406 127
Vote 8 - Water 30 875 37 705 32 365 41 115 42 785 45 780 48 985 52 414
Vote 9 - Waste Water Management 21 248 21 718 23 004 24 731 24 499 26 214 28 049 30 012
Vote 10 - Waste Management 9 798 12 176 9 938 13 869 14 043 15 026 16 078 17 204
Total Revenue by Vote 343 115 431 172 422 526 490 216 536 829 641 288 698 413 763 739
Expenditure by Vote to be appropriated
Vote 1 - Council & Ex ecutiv e 44 385 45 588 39 019 184 347 147 917 137 568 141 974 147 113
Vote 2 - Budget & Treasury 116 236 229 040 162 565 74 827 61 154 60 552 63 105 66 069
Vote 3 - Corporate 15 951 15 927 15 301 15 155 18 252 18 213 19 020 20 069
Vote 4 - Community Serv ices 37 091 38 333 35 524 37 491 41 205 38 511 40 722 43 544
Vote 5 - Roads 20 707 21 237 30 571 31 250 24 067 22 825 21 006 22 296
Vote 6 - Planning & Dev elopment 332 179 1 042 5 449 4 414 7 368 7 830 8 325
Vote 7 - Electricity 180 683 201 554 227 501 244 286 249 133 356 103 364 976 375 045
Vote 8 - Water 26 846 32 002 31 171 46 684 46 417 46 096 47 716 49 599
Vote 9 - Waste Water Management 9 651 9 481 12 522 21 046 18 617 20 418 21 343 22 376
Vote 10 - Waste Management 13 051 34 923 62 263 22 515 22 562 22 487 25 607 27 554
Total Expenditure by Vote 464 933 628 264 617 479 683 050 633 739 730 140 753 301 781 990
Surplus/(Deficit) for the year (121 818) (197 092) (194 953) (192 834) (96 910) (88 851) (54 888) (18 251)
Current Year 2014/152015/16 Medium Term Revenue &
Expenditure Framework
MBRR Table A4 - Budgeted Financial Performance (revenue and expenditure) Revenue generated from rates and services charges forms a significant percentage of the revenue basket for the Municipality. Rates and service charge revenues comprise R 473 million (73.8%) of the total revenue mix. This increases to R 523 million and R 578 million in the respective two outer financial years of the MTREF. A notable trend is the increase in the total percentage revenue generated from rates and sale of electricity which increases from 50 per cent in 2011/12 to 60 per cent in 2015/16. This growth can be mainly attributed to the increased share that the sale of electricity contributes to the total revenue mix, which in turn is due to rapid increases in the Eskom tariffs for bulk electricity.
Property rates contribute 10 per cent or R 64 million rand of the total revenue mix and increases to R 74 million by 2017/18. The other sources of revenue is ‘other revenue’ which consists of various items such as income received from permits and licenses, building plan fees, connection fees, transport fees and advertisement fees. Departments have been urged to review the tariffs of these items on an annual basis to ensure they are cost reflective and market related.
187 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Operating grants and transfers decreased from R 87 million for 2014-15 to R85 million in the 2015/16 financial year and steadily increases to R 90 million by 2015/16. The average growth of 6% over the 201516 MTREF is less than the 14% growth experienced in the 2011-12 MTREF. This is a clear indication that the National Government is advocating to the Municipality that they should not rely on grants received from National Government but should rather strengthen their own internal revenue generating mechanism.
The employee related cost has increased by R 22 million in order to fund technical or critical positions that are vacant. The salary increase negotiations are still underway, a provision for salary increases of 6.8% though National Treasury is proposing a 5.4% increase which is linked to inflation. The past salary increase have not been less than 6% or higher than 10% in the recent years. Any difference in the salary increase that is below 6.8% or higher than 6.8% will be provided for in the 2015-16 adjustment budgets. Bulk purchases has increased with 44% (R 75 million) from R 167 million in 2011-12 financial period to R 242 million in the 2015-16 financial period. The high increase is mainly on the electricity bulk purchases were Eskom is continuously provided an increase above 6%. Though the level of inventory has decreased a provision is made to have inventory in hand. A provision for inventory amounting to R 5 million has been made in order to reduce interruption that might arise as a result of delays in procuring materials in instance where there’s a breakdown. Though the operating budget has been reduced immensely but no sufficient provision has been made for repairs and maintenance of the municipal assets. In terms of NT circular 66 and 70 repairs and maintenance as a percentage of PPE (carrying value) should be at 8%. Though the repairs & maintenance should contribute 8% the Though the repairs & maintenance is steadily growing R 15 million in the 2011-12 audit outcome to R 31 million in the 2015-6 budget . The percentage for the 2015/16 budget is below the prescribed norm. The main reason for this non-compliance is the current cash flow problem at the Municipality in terms of which expenditure inclusive of repairs and maintenance has been reduced in line with realistically expected revenue streams. This is not sustainable in the medium to long term and the Municipality needs to address this as matter of urgency. Contracted services amount to R 97 million which includes a provision of R 70 million for the repayment of the smart meters. Most of the routine work been outsourced to service provider as well as an absence of service level agreement governing some contract. This also indicates that the municipality has an over reliance on consultants to perform the routine work. This is also influenced by high vacant positions of personnel in various sections, inadequate competency levels of current employees.
188 | P a g e F I N A L I D P 2 0 1 5 / 1 6
MP305 Lekwa - Table A4 Budgeted Financial Performance (revenue and expenditure)
Description 2011/12 2012/13 2013/14
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Budget
Year
2015/16
Budget
Year +1
2016/17
Budget
Year +2
2017/18
Revenue By Source
Property rates 37 301 66 365 38 731 52 600 60 540 64 778 69 312 74 164
Property rates - penalties & collection charges
Serv ice charges - electricity rev enue 136 699 174 886 180 418 227 984 227 984 321 798 361 057 405 106
Serv ice charges - w ater rev enue 30 862 37 664 32 363 40 978 42 782 45 777 48 981 52 410
Serv ice charges - sanitation rev enue 21 248 21 707 23 004 24 730 24 499 26 214 28 049 30 012
Serv ice charges - refuse rev enue 9 790 12 164 9 932 13 861 14 037 15 020 16 071 17 196
Serv ice charges - other
Rental of facilities and equipment (353) 651 564 595 589 630 675 722
Interest earned - ex ternal inv estments 726 837 1 299 255 1 018 1 089 1 165 1 247
Interest earned - outstanding debtors 18 450 14 110 18 273 18 200 24 262 25 960 27 778 29 722
Div idends receiv ed
Fines 2 166 271 1 755 2 907 502 544 590 640
Licences and permits
Agency serv ices 12 412 18 591 31 283 16 331 48 857 52 277 55 937 59 853
Transfers recognised - operational 73 251 81 942 83 760 90 235 90 235 85 557 87 026 90 755
Other rev enue 563 1 983 1 144 1 540 1 525 1 644 1 771 1 912
Gains on disposal of PPE
Total Revenue (excluding capital
transfers and contributions)
343 115 431 172 422 526 490 216 536 829 641 288 698 413 763 739
Expenditure By Type
Employ ee related costs 101 586 114 990 117 725 127 068 123 424 145 767 155 136 165 130
Remuneration of councillors 7 889 8 417 9 367 10 503 10 503 11 136 11 136 11 136
Debt impairment 39 082 77 099 47 227 90 818 68 362 68 915 70 983 73 467
Depreciation & asset impairment 60 891 121 508 128 005 139 196 115 520 95 530 98 396 101 840
Finance charges 1 176 14 219 16 757 764 771 786 810 838
Bulk purchases 167 691 186 519 198 026 213 085 213 085 242 748 250 030 258 781
Other materials 4 154 2 995 4 798 5 089 5 820 5 296 5 472 5 689
Contracted serv ices 21 854 23 250 23 224 26 340 39 019 97 325 98 520 99 835
Transfers and grants 20 898 41 647 14 535 11 393 5 105 2 108 2 171 2 247
Other ex penditure 39 713 37 621 57 814 58 793 52 129 60 528 60 646 63 026
Loss on disposal of PPE
Total Expenditure 464 933 628 264 617 479 683 050 633 739 730 140 753 301 781 990
Surplus/(Deficit) (121 818) (197 092) (194 953) (192 834) (96 910) (88 851) (54 888) (18 251)
Transfers recognised - capital
Contributions recognised - capital – – – – – – – –
Contributed assets
Surplus/(Deficit) after capital
transfers & contributions
(121 818) (197 092) (194 953) (192 834) (96 910) (88 851) (54 888) (18 251)
Current Year 2014/152015/16 Medium Term Revenue &
Expenditure Framework
189 | P a g e F I N A L I D P 2 0 1 5 / 1 6
MBRR Table A5 - Budgeted Capital Expenditure by vote, standard classification and funding source Table A5 is a breakdown of the capital programme in relation to capital expenditure by municipal vote (multi-year and single-year appropriations); capital expenditure by standard classification; and the funding sources necessary to fund the capital budget, including information on capital transfers from national and provincial departments. The MFMA provides that a municipality may approve multi-year or single-year capital budget appropriations. The capital programmes are funded from capital grants and transfers, internally generated funds from current year surpluses. The allocation of capital grants from the National government has decline over the MTREF
190 | P a g e F I N A L I D P 2 0 1 5 / 1 6
MP305 Lekwa - Table A5 Budgeted Capital Expenditure by vote, standard classification and funding
Vote Description 2011/12 2012/13 2013/14
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Budget
Year
2015/16
Budget
Year +1
2016/17
Budget
Year +2
2017/18
Capital expenditure - Vote
Multi-year expenditure to be appropriated
Vote 1 - Council & Ex ecutiv e – – – – – – – –
Vote 2 - Budget & Treasury – – – – – – – –
Vote 3 - Corporate – – – – – – – –
Vote 4 - Community Serv ices – – – – – – – –
Vote 5 - Roads – – – – – – – –
Vote 6 - Planning & Dev elopment – – – – – – – –
Vote 7 - Electricity – – – – – – – –
Vote 8 - Water – – – – – 10 500 10 870 11 933
Vote 9 - Waste Water Management – – – – – 16 306 17 000 17 000
Vote 10 - Waste Management – – – – – – – –
Capital multi-year expenditure sub-total – – – – – 26 806 27 870 28 933
Single-year expenditure to be appropriated
Vote 1 - Council & Ex ecutiv e 13 – – – – – – –
Vote 2 - Budget & Treasury 74 4 238 – 1 300 5 550 – – –
Vote 3 - Corporate 2 544 – – – – – – –
Vote 4 - Community Serv ices 6 587 5 486 – – 3 677 1 173 – –
Vote 5 - Roads 29 896 10 276 – – 2 043 – – –
Vote 6 - Planning & Dev elopment – – – – – – – –
Vote 7 - Electricity 2 102 2 032 – – 2 184 3 200 – –
Vote 8 - Water 832 661 – 16 500 23 022 – – –
Vote 9 - Waste Water Management 1 973 5 121 – 16 984 41 960 – – –
Vote 10 - Waste Management 93 7 637 – – 465 1 000 – –
Capital single-year expenditure sub-total44 115 35 449 – 34 784 78 900 5 373 – –
Total Capital Expenditure - Vote 44 115 35 449 – 34 784 78 900 32 179 27 870 28 933
Capital Expenditure - Standard
Governance and administration 2 632 4 238 – 1 300 5 550 – – –
Ex ecutiv e and council 13 –
Budget and treasury office 74 4 238 1 300 5 550
Corporate serv ices 2 544
Community and public safety 6 587 5 486 – – 3 677 1 173 – –
Community and social serv ices 1 667 623
Sport and recreation 6 587 5 486 2 010 550
Economic and environmental services29 896 10 276 – – 2 043 – – –
Road transport 29 896 10 276 2 043
Trading services 5 000 15 450 – 33 484 67 630 31 006 27 870 28 933
Electricity 2 102 2 032 2 184 3 200
Water 832 661 16 500 23 022 10 500 10 870 11 933
Waste w ater management 1 973 5 121 16 984 41 960 16 306 17 000 17 000
Waste management 93 7 637 465 1 000
Total Capital Expenditure - Standard 44 115 35 449 – 34 784 78 900 32 179 27 870 28 933
Funded by:
National Gov ernment 40 950 31 212 33 484 51 350 29 679 27 870 28 933
Prov incial Gov ernment 20 000
District Municipality 2 000
Transfers recognised - capital 40 950 31 212 – 33 484 73 350 29 679 27 870 28 933
Internally generated funds 3 165 4 238 1 300 5 550 2 500
Total Capital Funding 44 115 35 449 – 34 784 78 900 32 179 27 870 28 933
Current Year 2014/152015/16 Medium Term Revenue &
Expenditure Framework
191 | P a g e F I N A L I D P 2 0 1 5 / 1 6
MBRR Table A6 - Budgeted Financial Position
1. Table A6 is consistent with international standards of good financial management practice, and improves understandability for councilors and management of the impact of the budget on the statement of financial position (balance sheet).
2. This format of presenting the statement of financial position is aligned to GRAP1, which is generally aligned to the international version which presents Assets less Liabilities as “accounting” Community Wealth. The order of items within each group illustrates items in order of liquidity; i.e. assets readily converted to cash, or liabilities immediately required to be met from cash, appear first.
3. Table 66 is supported by an extensive table of notes (SA3 which can be found on page 102) providing a detailed analysis of the major components of a number of items, including:
• Call investments deposits; • Consumer debtors; • Property, plant and equipment; • Trade and other payables; • Provisions non-current; • Changes in net assets; and • Reserves 4. The municipal equivalent of equity is Community Wealth/Equity. The justification is that
ownership and the net assets of the municipality belong to the community. Any movement on the Budgeted Financial Performance or the Capital Budget will inevitably impact on the Budgeted Financial Position. As an example, the collection rate assumption will impact on the cash position of the municipality and subsequently inform the level of cash and cash equivalents at year end. Similarly, the collection rate assumption should inform the budget appropriation for debt impairment which in turn would impact on the provision for bad debt. These budget and planning assumptions form a critical link in determining the applicability and relevance of the budget as well as the determination of ratios and financial indicators. In addition the funding compliance assessment is informed directly by forecasting the statement of financial position
192 | P a g e F I N A L I D P 2 0 1 5 / 1 6
MP305 Lekwa - Table A6 Budgeted Financial Position
Description 2011/12 2012/13 2013/14
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Budget
Year
2015/16
Budget
Year +1
2016/17
Budget
Year +2
2017/18
ASSETS
Current assets
Cash 29 660 6 985 6 985 4 000 6 800 6 500
Call inv estment deposits 15 273 23 780 – 27 936 27 936 47 984 88 164 125 718
Consumer debtors 51 617 45 315 55 672 87 350 87 350 128 567 141 424 155 566
Other debtors 7 172 7 167 32 523 6 306 6 306 37 127 40 840 44 924
Current portion of long-term receiv ables – – – –
Inv entory 2 322 2 464 2 618 2 093 2 093 3 053 3 358 3 694
Total current assets 76 384 78 726 120 472 130 670 130 670 220 731 280 585 336 402
Non current assets
Long-term receiv ables
Inv estments
Inv estment property 10 250 9 881 12 746 10 869 10 869 12 246 11 746 11 246
Inv estment in Associate
Property , plant and equipment 1 981 968 1 896 136 1 775 440 1 797 658 1 797 658 1 668 281 1 601 151 1 532 235
Agricultural
Biological
Intangible
Other non-current assets
Total non current assets 1 992 218 1 906 016 1 788 186 1 808 527 1 808 527 1 680 528 1 612 898 1 543 481
TOTAL ASSETS 2 068 602 1 984 743 1 908 658 1 939 197 1 939 197 1 901 258 1 893 483 1 879 883
LIABILITIES
Current liabilities
Bank ov erdraft 7 481
Borrow ing 1 350 1 102 – – – – – –
Consumer deposits 2 592 2 705 2 813 2 789 2 789 3 164 3 481 3 829
Trade and other pay ables 177 480 261 754 364 415 318 850 318 850 395 283 430 294 424 442
Prov isions 5 280 5 589 6 148 6 762 7 439
Total current liabilities 181 422 278 322 372 817 321 639 321 639 404 595 440 537 435 709
Non current liabilities
Borrow ing 1 037 – – – – – – –
Prov isions 88 222 92 289 101 382 94 269 94 269 111 520 122 672 134 939
Total non current liabilities 89 260 92 289 101 382 94 269 94 269 111 520 122 672 134 939
TOTAL LIABILITIES 270 682 370 611 474 198 415 908 415 908 516 115 563 209 570 648
NET ASSETS 1 797 920 1 614 132 1 434 460 1 523 288 1 523 288 1 385 144 1 330 274 1 309 235
COMMUNITY WEALTH/EQUITY
Accumulated Surplus/(Deficit) 1 797 920 1 614 132 1 434 460 1 523 288 1 523 288 1 385 144 1 330 274 1 309 235
Reserv es – – – – – – – –
Minorities' interests
TOTAL COMMUNITY WEALTH/EQUITY1 797 920 1 614 132 1 434 460 1 523 288 1 523 288 1 385 144 1 330 274 1 309 235
Current Year 2014/152015/16 Medium Term Revenue &
Expenditure Framework
193 | P a g e F I N A L I D P 2 0 1 5 / 1 6
MBRR Table A7 - Budgeted Cash Flow Statement
MP305 Lekwa - Table A7 Budgeted Cash Flows
Description 2011/12 2012/13 2013/14
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Budget
Year
2015/16
Budget
Year +1
2016/17
Budget
Year +2
2017/18
CASH FLOW FROM OPERATING ACTIVITIES
Receipts
Property rates, penalties & collection
charges 34 940 24 465 22 380 44 956 49 212 52 656
Serv ice charges 176 132 293 248 232 173 298 584 359 715 401 885 447 478
Other rev enue 12 378 55 096 58 973 63 127
Gov ernment - operating 75 805 79 067 81 320 89 270 91 783 85 557 87 026 90 755
Gov ernment - capital 35 331 49 542 69 176 33 484 72 050 29 679 27 870 28 933
Interest 19 176 14 949 19 573 4 856 25 280 13 031 13 943 14 919
Payments
Suppliers and employ ees (306 303) (417 791) (342 695) (446 083) (1 345 174) (562 800) (580 940) (603 597)
Finance charges (4 149) (18 233) (21 862) (764) (764) (786) (810) (838)
Transfers and Grants (2 108) (2 171) (2 247)
NET CASH FROM/(USED) OPERATING ACTIVITIES43 310 25 247 60 064 (20 653) (1 156 825) 22 340 54 988 91 186
CASH FLOWS FROM INVESTING ACTIVITIES
Receipts
Proceeds on disposal of PPE 954 – – –
Decrease (Increase) in non-current debtors (2 086) (2 286) – – –
Payments
Capital assets (35 331) (21 085) (44 819) (34 784) (78 900) (32 179) (27 870) (28 933)
NET CASH FROM/(USED) INVESTING ACTIVITIES(35 331) (22 217) (47 105) (34 784) (78 900) (32 179) (27 870) (28 933)
CASH FLOWS FROM FINANCING ACTIVITIES
Receipts
Short term loans – – –
Borrow ing long term/refinancing – – –
Increase (decrease) in consumer deposits – – –
Payments
Repay ment of borrow ing (1 647) (1 285) (1 102) – – –
NET CASH FROM/(USED) FINANCING ACTIVITIES(1 647) (1 285) (1 102) – – – – –
NET INCREASE/ (DECREASE) IN CASH HELD 6 331 1 744 11 857 (55 438) (1 235 725) (9 839) 27 117 62 253
Cash/cash equiv alents at the y ear begin: 8 941 15 273 17 017 29 968 54 276 36 881 27 042 54 159
Cash/cash equiv alents at the y ear end: 15 273 17 017 28 874 (25 470) (1 181 449) 27 042 54 159 116 412
Current Year 2014/152015/16 Medium Term Revenue &
Expenditure Framework
194 | P a g e F I N A L I D P 2 0 1 5 / 1 6
MBRR Table A8 - Cash Backed Reserves/Accumulated Surplus Reconciliation
MP305 Lekwa - Table A8 Cash backed reserves/accumulated surplus reconciliation
Description 2011/12 2012/13 2013/14
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Budget
Year
Budget
Year +1
Budget
Year +2
Cash and investments available
Cash/cash equiv alents at the y ear end 15 273 17 017 28 874 (25 470) (1 181 449) 27 042 54 159 116 412
Other current inv estments > 90 day s – (717) 786 60 391 1 216 371 24 942 40 804 15 806
Non current assets - Inv estments – – – – – – – –
Cash and investments available: 15 273 16 300 29 660 34 922 34 922 51 984 94 964 132 218
Application of cash and investments
Unspent conditional transfers 10 994 21 940 3 847 27 936 27 936 17 744 19 518 21 470
Unspent borrow ing – – – – – – – –
Statutory requirements
Other w orking capital requirements 148 148 229 902 498 382 290 914 290 914 511 986 563 259 620 037
Other prov isions
Long term inv estments committed – – – – – – – –
Reserv es to be backed by cash/inv estments
Total Application of cash and investments:159 142 251 842 502 229 318 850 318 850 529 730 582 777 641 508
Surplus(shortfall) (143 869) (235 543) (472 569) (283 928) (283 928) (477 746) (487 813) (509 289)
Current Year 2014/152015/16 Medium Term Revenue &
Expenditure Framework
195 | P a g e F I N A L I D P 2 0 1 5 / 1 6
MBRR Table A9 - Asset Management MP305 Lekwa - Table A9 Asset Management
Description 2011/12 2012/13 2013/14
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Budget
Year
Budget
Year +1
Budget
Year +2
CAPITAL EXPENDITURE
Total New Assets 44 115 35 449 – 29 784 78 900 8 179 3 870 4 000
Infrastructure - Road transport 29 570 10 169 – – 2 043 – – –
Infrastructure - Electricity 2 102 2 032 – – 2 184 3 200 – –
Infrastructure - Water 832 107 – 11 500 18 022 1 500 1 870 2 000
Infrastructure - Sanitation 1 973 5 781 – 16 984 46 960 1 306 2 000 2 000
Infrastructure - Other 93 7 637 – – 465 1 000 – –
Infrastructure 34 570 25 726 – 28 484 69 673 7 006 3 870 4 000
Community 6 557 5 486 – – 3 677 1 173 – –
Other assets 2 988 4 238 – 1 300 5 550 – – –
Total Renewal of Existing Assets – – – 5 000 – 24 000 24 000 24 933
Infrastructure - Water – – – 5 000 – 9 000 9 000 9 933
Infrastructure - Sanitation – – – – – 15 000 15 000 15 000
Infrastructure - Other – – – – – – – –
Infrastructure – – – 5 000 – 24 000 24 000 24 933
Total Capital Expenditure
Infrastructure - Road transport 29 570 10 169 – – 2 043 – – –
Infrastructure - Electricity 2 102 2 032 – – 2 184 3 200 – –
Infrastructure - Water 832 107 – 16 500 18 022 10 500 10 870 11 933
Infrastructure - Sanitation 1 973 5 781 – 16 984 46 960 16 306 17 000 17 000
Infrastructure - Other 93 7 637 – – 465 1 000 – –
Infrastructure 34 570 25 726 – 33 484 69 673 31 006 27 870 28 933
Community 6 557 5 486 – – 3 677 1 173 – –
Other assets 2 988 4 238 – 1 300 5 550 – – –
TOTAL CAPITAL EXPENDITURE - Asset class44 115 35 449 – 34 784 78 900 32 179 27 870 28 933
ASSET REGISTER SUMMARY - PPE (WDV)
Inv estment properties 10 250 9 881 12 746 10 869 10 869 12 246 11 746 11 246
Other assets 1 981 968 1 896 136 1 775 440 1 797 658 1 797 658 1 668 281 1 601 151 1 532 235
TOTAL ASSET REGISTER SUMMARY - PPE (WDV)1 992 218 1 906 016 1 788 186 1 808 527 1 808 527 1 680 528 1 612 898 1 543 481
EXPENDITURE OTHER ITEMS
Depreciation & asset impairment 60 891 121 508 128 005 139 196 115 520 95 530 98 396 101 840
Repairs and Maintenance by Asset Class15 754 13 857 31 406 17 408 20 498 31 423 29 339 30 010
Infrastructure - Road transport 1 380 557 8 435 1 386 1 685 2 000 – –
Infrastructure - Electricity 3 798 3 413 9 374 5 360 7 800 12 700 12 991 12 841
Infrastructure - Water 1 836 2 209 2 197 2 250 2 650 3 551 3 658 3 786
Infrastructure - Sanitation 1 132 740 3 863 850 450 500 515 533
Infrastructure - Other – – – – – – – –
Infrastructure 8 147 6 919 23 869 9 845 12 585 18 751 17 164 17 159
Other assets 7 607 6 939 7 537 7 563 7 913 12 672 12 175 12 850
TOTAL EXPENDITURE OTHER ITEMS 76 645 135 365 159 411 156 604 136 018 126 954 127 735 131 850
Renewal of Existing Assets as % of total capex0.0% 0.0% 0.0% 14.4% 0.0% 74.6% 86.1% 86.2%
Renewal of Existing Assets as % of deprecn"0.0% 0.0% 0.0% 3.6% 0.0% 25.1% 24.4% 24.5%
R&M as a % of PPE 0.8% 0.7% 1.8% 1.0% 1.1% 1.9% 1.8% 2.0%
Renewal and R&M as a % of PPE 1.0% 1.0% 2.0% 1.0% 1.0% 3.0% 3.0% 4.0%
Current Year 2014/152015/16 Medium Term Revenue &
Expenditure Framework
196 | P a g e F I N A L I D P 2 0 1 5 / 1 6
MBRR Table A10 - Basic Service Delivery Measurement MP305 Lekwa - Table A10 Basic service delivery measurement
2011/12 2012/13 2013/14
Outcome Outcome OutcomeOriginal
Budget
Adjusted
Budget
Budget
Year
2015/16
Budget
Year +1
2016/17
Budget
Year +2
2017/18
Household service targets
Water:
Piped w ater inside dw elling 17 154 17 154 17 154 17 160 17 160 17 180 17 200 17 225
Piped w ater inside y ard (but not in dw elling) 10 993 10 993 11 133 11 147 11 147 11 647 12 642 13 347
Using public tap (at least min.serv ice lev el) 1 432 1 432 1 522 1 780 1 780 1 920 1 980 2 210
Other w ater supply (at least min.serv ice lev el) 184 184 184
Minimum Service Level and Above sub-total 29 763 29 763 29 993 30 087 30 087 30 747 31 822 32 782
Using public tap (< min.serv ice lev el) 125 125 125 125
Other w ater supply (< min.serv ice lev el)
No w ater supply 731 731 641 1 500 000 1 500 000 1 870 150 2 000 000
Below Minimum Service Level sub-total 856 856 766 1 500 125 – 1 500 000 1 870 150 2 000 000
Total number of households 30 619 30 619 30 759 1 530 212 30 087 1 530 747 1 901 972 2 032 782
Sanitation/sewerage:
Flush toilet (connected to sew erage) 25 984 25 984 26 007 26 037 26 037 26 537 27 537 28 287
Flush toilet (w ith septic tank) 682 682 682 682 682 682 682 682
Chemical toilet 230 230 230 – – – – –
Pit toilet (v entilated) 1 464 1 464 1 464 – – – – –
Other toilet prov isions (> min.serv ice lev el) 516 714 924 1 005 1 005 1 105 1 174 1 257
Minimum Service Level and Above sub-total 28 876 29 074 29 307 27 724 27 724 28 324 29 393 30 226
Bucket toilet 316 316 316 – – – – –
Other toilet prov isions (< min.serv ice lev el) 597 597 597 – – – – –
No toilet prov isions 1 279 1 087 871 1 190 000 1 306 150 2 000 000 2 000 000
Below Minimum Service Level sub-total 2 192 2 000 1 784 1 190 000 – 1 306 150 2 000 000 2 000 000
Total number of households 31 068 31 074 31 091 1 217 724 27 724 1 334 474 2 029 393 2 030 226
Description
Current Year 2014/152015/16 Medium Term Revenue &
Expenditure Framework
197 | P a g e F I N A L I D P 2 0 1 5 / 1 6
7.5. OVERVIEW OF BUDGET-RELATED POLICIES It is a legislative requirement that municipal budget for the following fiscal year, together with finance related policies will be reviewed tabled and adopted by council. The following financial policies have been changed:
The Supply Chain Management Policy The policy ensures that all employees of Lekwa Local Municipality has proper guidelines to follow when involved in procurement processes.
Property Rates Policy This policy guides the annual setting (or revision) of property rates. Details pertaining to the applications of the various property rates are published in the Provincial Gazette and the municipality’s schedule of tariffs, which must be read in conjunction with this policy. In imposing the rate in the rand for each annual operating budget component, the municipality shall grant exemptions, rebates and reductions to the respective categories of properties and owners as allowed for in this policy. The policy also guides the valuation of properties within the jurisdiction of the Municipality.
Asset Management Policy The purpose of the policy should promote efficient and effective monitoring and control of assets according to the MFMA. The changes have been made in term of Generally Recognised Accounting Practice (GRAP)
Indigent Support Policy
The key purpose of an indigent subsidy policy is to ensure that households with no or lower income are not denied a reasonable service, and on the contrary the Municipality is not financially burdened with non-payment of services. Provided that grants are received and funds are available, the indigent subsidy policy should remain intact. To achieve the purpose it is important to set a fair threshold level, and then to provide a fair subsidy of tariffs. The consumer, in order to qualify as an indigent, needs to complete the necessary documentation as required and agree to regulations and restrictions stipulated by Lekwa Local Municipality. Bad Debt Provision & Write-off Policy The key purpose of this policy is to provide criteria for the provision of working capital as a result of non-payment and for the write-off of debt under certain circumstances. Council acknowledges that in order to deliver services in a sustainable manner, that revenue collection be managed in terms of Councils Debt Collection and Credit Control Policy having due regard of its limited financial resources and the need to manage cash flows. Council therefore accepts its duty to prepare financial statements that truly reflects the financial position of the Municipality.
Petty Cash Policy The policy is established to ensure that the management of expenditure of a municipality is effective and controlled manner.
Credit Control and Debt Collection Policy The purpose of this policy is to use innovative, cost effective, efficient and appropriate methods to manage credit control and debt collection of the municipality
198 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Tariff Policy This policy cover, among other things, the levying of fees for municipal services provided by the municipality itself or by way of service delivery agreements. Budget Policy whereby transfers between line items within votes of the operating budget may be performed with the approval of certain officials
S & T Policy The main importance of budget policy is to address allocation of resources, and how to efficiency use resources and attaining economic stability and growth, and redistribution of income. It includes the Virement Policy that is designed to provide a framework. The purpose of this policy is to lay down general rules for the payment of subsistence and traveling allowances or costs for the ‘attendance of approved events outside the municipal area of Lekwa Local Municipality.
199 | P a g e F I N A L I D P 2 0 1 5 / 1 6
7.6. OVERVIEW OF BUDGET FUNDING
The main sources of revenue/funding are indicated in the table below:
MP305 Lekwa - Table A4 Budgeted Financial Performance (revenue and expenditure)
Description 2011/12 2012/13 2013/14
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Budget
Year
2015/16
Budget
Year +1
2016/17
Budget
Year +2
2017/18
Revenue By Source
Property rates 37 301 66 365 38 731 52 600 60 540 64 778 69 312 74 164
Serv ice charges - electricity
rev enue 136 699 174 886 180 418 227 984 227 984 321 798 361 057 405 106
Serv ice charges - w ater rev enue 30 862 37 664 32 363 40 978 42 782 45 777 48 981 52 410
Serv ice charges - sanitation
rev enue 21 248 21 707 23 004 24 730 24 499 26 214 28 049 30 012
Serv ice charges - refuse rev enue 9 790 12 164 9 932 13 861 14 037 15 020 16 071 17 196
Rental of facilities and equipment (353) 651 564 595 589 630 675 722
Interest earned - ex ternal
inv estments 726 837 1 299 255 1 018 1 089 1 165 1 247
Interest earned - outstanding
debtors 18 450 14 110 18 273 18 200 24 262 25 960 27 778 29 722
Fines 2 166 271 1 755 2 907 502 544 590 640
Agency serv ices 12 412 18 591 31 283 16 331 48 857 52 277 55 937 59 853
Transfers recognised - operational 73 251 81 942 83 760 90 235 90 235 85 557 87 026 90 755
Other rev enue 563 1 983 1 144 1 540 1 525 1 644 1 771 1 912
Total Revenue (excluding capital
transfers and contributions)
343 115 431 172 422 526 490 216 536 829 641 288 698 413 763 739
Current Year 2014/152015/16 Medium Term Revenue
& Expenditure Framework
EXPENDITURE ON ALLOCATIONS AND GRANT PROGRAMMES Grants and subsidies from National and Provincial governments, as reported in the 2015 Division of Revenue Act and reflected in SA 19, have been included the 2015/16 budget and each allocation will utilised for the purpose as described below.
200 | P a g e F I N A L I D P 2 0 1 5 / 1 6
MP305 Lekwa - Supporting Table SA18 Transfers and grant receipts
Description 2011/12 2012/13 2013/14
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Budget
Year
2015/16
Budget
Year +1
2016/17
Budget
Year +2
2017/18
RECEIPTS:
Operating Transfers and Grants
National Government: 73 178 84 124 87 830 87 568 87 568 85 557 87 026 90 755
Local Gov ernment Equitable Share 69 959 79 068 81 320 85 034 85 034 83 027 84 444 88 022
Finance Management 1 713 1 250 1 550 1 600 1 600 1 600 1 625 1 700
Municipal Sy stems Improv ement 1 506 800 890 934 934 930 957 1 033
Other transfers/grants [insert description] – 3 006 4 070
Total Operating Transfers and Grants 73 178 84 124 87 830 87 568 87 568 85 557 87 026 90 755
Capital Transfers and Grants
National Government: 56 621 43 525 84 434 36 684 36 684 30 851 34 970 33 456
Municipal Infrastructure Grant (MIG) 53 783 41 780 59 004 33 994 33 994 27 978 28 970 30 456
Neighbourhood Dev elopment Partnership 1 745
Intergrated Electrification Programme 1 389 1 500 1 500 1 700 6 000 3 000
Ex panded Public Works Programme 1 449 1 190 1 190 1 173
Other capital transfers/grants [insert desc] 25 430
Provincial Government: – – – – 20 000 – – –
Human Settlement 20 000
District Municipality: – – – – 2 000 – – –
Rising Main Project 2 000
Other grant providers: – – – – – – – –
Total Capital Transfers and Grants 56 621 43 525 84 434 36 684 58 684 30 851 34 970 33 456
TOTAL RECEIPTS OF TRANSFERS & GRANTS129 799 127 649 172 264 124 252 146 252 116 408 121 996 124 211
References
Current Year 2014/152015/16 Medium Term Revenue &
Expenditure Framework
201 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Project Description
Total Planned
Expenditure for
2015/2016
Planned MIG
Expenditure for
2016/2017
Planned MIG
Expenditure for
2017/2018
Upgrading of the Standerton Waste
Water Treatment Works 15 000 000.00R 15 000 000.00R 15 000 000.00R
Installation of Bulk Water Infrastructure
and Replacement of AC pipes in Lekwa
Local Municipality 9 000 000.00R 9 000 000.00R 9 933 200.00R
Installation of Boreholes in Lekwa
Municipality in farm areas 1 500 000.00R 1 870 150.00R 2 000 000.00R
Rooikoppen Sewer Network -R
Installation of Sanitation services in Rural
areas of Lekwa LM 1 306 150.00R 2 000 000.00R 2 000 000.00R
Electrification of RDP house in Standerton
Extension 8 1 700 000.00R
Development of New Cemetry for Lekwa
LM 623 000.00R
Rehabilitation of River Park 550 000.00R
Electrification of 53 rural houses 1 500 000.00R
Conduct Environmental Impact
Assessment for Development of a New
Cell at Morgenzon Landfill Site 1 000 000.00R
Total 32 179 150.00R 27 870 150.00R 28 933 200.00R
Municipal manager’s quality certificate I Linda Bernard Tshabalala, Municipal Manager of Lekwa Local Municipality, hereby certify that the Annual Budget and supporting documentation have been prepared in accordance with the Municipal Finance Management Act and the regulations made under the Act. Print Name Linda Bernard Tshabalala Municipal Manager of Lekwa Local Municipality (MP305) Signature _________________________________ Date 24 March 2015
202 | P a g e F I N A L I D P 2 0 1 5 / 1 6
7. CHAPTER 7: GOOD GOVERNANCE AND PUBLIC PARTICIPATION
7.1. Gender Lekwa Municipality is taking the issue of gender seriously. Gender refers to the socially determined and evaluated identities and roles of men and women, and is usually distinguished from their biological or sex differences. Gender equality, gender and women’s empowerment are thus the outcomes of effective gender mainstreaming and interventions.
Gender Equity: means affording women and men the equal opportunities and benefits to develop their full human potential and meet development needs. This implies that everyone in Lekwa is equal before the law and may not be discriminated against on the basis of gender, sex, disability, age and marital status. The Constitution espouses substantive equality for women and men in social political and economic life. Human Rights: Women’s rights are human rights as enshrined in the Bill of Rights. Customary, cultural and religious practices are subject to the right to equality:
All persons have the right to enjoy and practice religious and cultural beliefs. However, these practices should not discriminate on the basis of gender. Empowerment of women refers to the capacity of women to access and control economic resources and makes decision for improving their quality of life Entitlement to the right of integrity and security of person. Consideration in Lekwa is given to selection and recruitment policy targets for ensuring equal participation of decision making.
7.2. Older Persons The municipality is in support of programmes aimed at older persons such as:
Promote active ageing -programmes in collaboration with DCSR
Promote care and protection of older persons
Conduct community and Intergenerational dialogues
7.3. Persons with Disabilities The municipality is in support of programmes aimed at persons with disabilities such as:
Promote and protect rights of persons with disabilities with special focus on children
Increase capacity in protective workshops to ensure sustainability and economic participation in partnership with other stakeholders
7.4. Youth Development The municipality is in support of programmes aimed at Youth development;
Facilitation of social change and activation of youth through a basket of service in youth
centres - linking them with relevant stakeholders
Facilitation of sustainable economic activities for the youth in CRDP sites in collaboration
with NYDA , NDA , DRDLR, DARDLA and DEDET
7.5. Sustainable Livelihoods The municipality is in support of programmes aimed sustainable livelihood;
203 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Household Profiling , referral and monitoring of interventions
Development of community profiles
Facilitate food security initiatives in collaboration with DARDLA , SASSA and NDA
7.6. Early Childhood Development ECD The municipality is in support of programmes aimed at ECD;
Special allocation to increase subsidy from R12.00 per child per day to R15.00
Implementation of non-centre based ECD programme
Training of parents and child minders on parenting programme
Provision of infrastructure to ECDs which is a joint venture of DSD and NDA, DHS and some
municipalities.
7.7. Child care and Protection The municipality is in support of programmes aimed at Child care and Protection;
Provision of Life Skills and Parenting Programmes to teenagers (with specific focus to 9 – 18
years old) – SASSA Information indicates high number of children on CSG in some
municipalities
Develop plans for children in foster care before they reach 18 years of age (exit plan
informed by individual development plans)
Group work for foster parents and foster children
Implementation of ISIBINDI model (focus on child headed households)
7.8. Moral Regeneration Lekwa Municipality has set aside a budget for Moral Regeneration Movement. The MRM is primarily a movement and not an organization. It does not seek to replace or duplicate any of the existing initiatives and processes aimed at combating moral degeneration. Its mandate is to be a networking platform for all these various processes and initiatives. Therefore structures put in place to facilitate the work of MRM aim primarily at facilitating the envisaged networks and partnerships. They also seek to promote local action and commitment from within the various communities of the country at their various levels of existence and operation.
The ultimate objective of the moral regeneration movement is to assist in the development of a caring society through the revival of the spirit of Botho / Ubuntu and the actualization and realization of the values and ideals enshrined in our constitution, using all available resources and harnessing all initiatives in government, business and civil society. In the words of the state president Thabo Mbeki “The MRM will address the issue of the responsibility that each of us should take for our lives, moving from the understanding that, as we were our own liberators in resistance against apartheid so too should we today act as our own liberators in dealing with its legacy”
How do they operate in Lekwa Municipality?
Networking forums, known as working committees, comprising provincial and local government, faith based organizations, non-governmental organizations, business, labour, traditional leaders, political parties have been established in Lekwa. These structures are charged with the responsibility of facilitating the work of MRM within the municipality.
204 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Focus areas of the Movement’s work
Development of Ethical Leadership
Any process of transformation process requires able leaders to take it forward. Leaders at all levels and in all sectors of society are perceived as role models and should therefore be persons on integrity, and good examples, who themselves continually aspire to set the standard for ‘morality’.
Moral Regeneration must aim at developing and nurturing such leadership!
Youth
The youth are the ones who bear most of the brunt or moral decay. They are often perceived as the agents of immoral behaviour or helpless victims who need some external intervention. They themselves decry the lack of role models and opportunities for right living.
Moral Regeneration must aim at harnessing and supporting the energy and creative spirit of youth towards moral renewal!
Education
As the Chairperson of MRM cautions: “It little profits a nation to boast about thousands of teachers, doctors, engineers, accountants, lawyers, priests, scientists and all kinds of skilled personal personnel if these are devoid of moral values. Did Nazi Germany or Apartheid South Africa not boast of similarly skilled citizenry? Yet it was the same professional and skilled persons that were turned into monsters that sent helpless persons to the gas chambers, conducted experiments on human bodies without their consent and mercilessly killed people for being different from them. Equally, in our times, it is skilled people who steal government funds and thus prevent the delivery of social services to the needy”.
Moral Regeneration must aim at making our education system foreground moral formation as one of its core functions both in theory and in practice!
The Family
The family in all its cultural and religious manifestations is an important agent of socialisation and a major instrument for nurturing values, attitudes and behaviour.
Moral Regeneration must aim at strengthening the family unit!
Riches and Poverty
Unquestionably, poverty is seen as a serious threat to moral regeneration. This does not mean that the poor are immoral; often the poorest people display deep moral integrity. It is the growing gap between the rich and the poor and worsening levels of poverty that are immoral. These create conditions within which moral decay in communities and neighbourhoods flourishes.
Moral Regeneration must aim at combating poverty and reducing the inequality gap!
Crime and Corruption
The prevalence of crime and high levels of corruption manifests a deep loss of respect for human life, a profound lack of patriotism and care for others and sickening degree of greed and selfishness.
205 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Moral Regeneration must aim at combating the root causes of crime and corruption in all their manifestations!
Religion
Religious belief and practices is another key agent of moral formation. Given the diversity of religious belief systems in our communities and the propensity of formal religion to proselytize, the power of religion as an agent of moral renewal is weakened.
The Media
The media is generally negative when reporting about moral issues. Media economics are seen to dictate that good news do not sell, whilst negative news does. Therefore, in pursuit of commercial imperatives, the media is likely to concentrate on news that sells (which are often negative) at the expense of good news (news that do not sell). This fuels perception that the country is generally immoral!
Moral Regeneration must aim at ensuring that the media does also carry positive stories of moral courage and renewal
7.9. Oversight Committees The oversight role of Council is an important component of the financial reforms and it is achieved through the separation of roles and responsibilities between Council, the Executive (Mayor and Executive Committee) and administration. Good governance, effective accountability and oversight can only be achieved if there is a clear distinction between the functions performed by the different role players.
Non-executive Councillors are required to maintain oversight on the performance of specific responsibilities and delegated powers that they have given to the (Mayor). In other words, in exchange for the powers in which Council have delegated to the Executive, Council retains a monitoring and oversight role ensuring that there is accountability for the performance or non- performance of the municipality. The Municipal Finance Management Act (MFMA) vests in Council specific powers of approval and oversight.
Approval of budgets
Approval of Budget related Policies
Review of the Annual Report and adoption of the Oversight Report
Function of Oversight Committee
Undertake a review and analysis of the Annual Report
Invite, receive and consider inputs from Councillors and Portfolio Committees, on the Annual Report.
Consider written comments received on the Annual Report from the public consultation process
Conduct Public Hearing(s) to allow the local community or any organs of state to make representations on the Annual Report
Receive and consider Councils’ Audit Committee views and comments on the annual financial statements and the performance report.
Preparation of the draft Oversight Report, taking into consideration, the views and inputs of the public, representative(s) of the Auditor General, organ of states, Councils’ audit committee and Councillors.
206 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Membership
The Oversight Committee is a committee of Council established under section 79 of the Municipal Structures Act 1998. Section 79, allows for the co-option of advisory members to a committee of Council, who are not members of the Council. Due to the separation of roles and responsibilities, between Council and the Executive (Mayor and Executive Committee) it is not appropriate that members of the Executive Committee be members of the Oversight Committee.
The Oversight Committee is composed of the following members;
Four PR Councillors :
Two members from local community Authority & Power
The Oversight Committee is delegated the responsibility to conduct meetings and to hold public hearings to receive and hear public submissions on the Annual Report, on behalf of Council. Timely notice of all meetings should be given and all meetings held by the Oversight Committee must be open to the public and minutes of the meetings must be submitted to Council meetings.
Meeting Schedule
The Annual Report must be tabled to Council by the 31st January and the Oversight Report must be adopted within two months from the date in which the Annual Report was tabled to Council. Within the two month period, the Oversight Committee will be required to meet as required to fulfil the functions of the committee
7.10. Municipal Public Accounts Committees Lekwa Municipality has a fully functional and established Municipal Public Accounts Committee, referred to as the Municipal SCOPA.
Considering there is a need for enhanced financial management oversight capacity, it is therefore recommended that an oversight committee is established with functions similar to a MPAC within municipality. The MPAC report directly to Council through the Speaker as any other form of reporting line will compromise the committee’s independence, authority and integrity.
Functions
The MPAC performs an oversight function on behalf of Council and is not a duplication of, and should not be confused with the Audit Committee or the finance portfolio committee.
The Audit Committee is an independent advisory body that advises Council and the executive on financial and risk matters and can act as an advisory body to the MPAC.
The finance portfolio committee deals with financial management issues such as budgetary, revenue and expenditure management and supply chain management.
The primary function of the MPAC is to assist Council to hold the executive and the municipal administration to account and to ensure the effective and efficient use of municipal resources. It will execute this function by reviewing public accounts and exercising oversight on behalf of the Council.
207 | P a g e F I N A L I D P 2 0 1 5 / 1 6
It is however important that good working relationships are developed between the MPAC and the other committees. Whilst guarding its independence, the MPAC should have the right to refer or receive matters from the other committees.
It is recommended that the committee examines the following:
Financial statements of all executive organs of Council
Any audit reports issued on those statements
Any reports issued by the Auditor General on the affairs of any municipal entity
Any other financial statements referred to the committee by Council
The annual report on behalf of Council and make recommendations to Council thereafter
The committee may also:
Report on any financial statements or reports to Council
Initiate and develop the annual oversight report based on the annual report
Initiate any investigation in its area of competence
Perform any other function assigned to it by resolution of Council When examining financial statements and audit reports, the committee must consider improvements from previous statements and must monitor the extent to which the committee’s and the Auditor General’s recommendations are implemented. The outcomes and the resolutions taken by this committee must be reported to Council and made public.
Structure and Membership
A MPAC, similar to other Council committees, should comprise solely of Councillors appointed by a full Council meeting. It is imperative that members represent a wide range of experience and expertise available in Council and political representative should also be taken into consideration.
The size should be determined according to the size of Council. It should range between a minimum of 5 to a maximum of 12 members.
The Mayor and members of the Executive Committee are not allowed to be members of the MPAC.
The committee may invite members of the public or experts in relevant fields to assist and advise in its deliberations when the need arises.
Chairing the Committee
This framework recommends that the appointment of the chairperson of the Municipal SCOPA must take into account the requirements of transparency, ethics and general good governance prescripts as well as local government legislature.
In keeping with the general tradition of oversight, the Council may consider whether a member of an opposition party may chair the committee. However ultimately this is a policy decision to be made by Council
7.11. Ward Committees Ward Committees are fully functional. There are 10 members in each Ward Committee in Lekwa with 150 Ward Committee members.
208 | P a g e F I N A L I D P 2 0 1 5 / 1 6
They consult via the Executive Mayoral outreach programme.
They link the Integrated planning process to their wards
Assist in the organizing of public consultation and participation
Ensure that the annual municipal budget and business plans are linked to and based on the IDP
7.12. Audit Committees The Municipality has a fully functional Audit Committee, and no longer sharing audit services concept with other three local municipalities and the GSDM. The Audit Committee is functioning effectively as envisaged. A 3-year rolling Audit Plan in terms of MFMA will be produced by Internal Audit and these would be reviewed annually. The risk based plan should be in terms of the MFMA legislation. Further risk plans also allows the municipality to prioritize its risks into high, medium and low. The high risks are attended to immediately and subsequently the internal controls are strengthened.
Pertaining to Performance Audit committee function, the current Audit Committee will be utilized instead of establishing an additional Committee to focus specifically on overall Organizational Performance Audit.
7.13. Intergovernmental Relations The municipality has an IGR unit which is focusing on Overseeing all the IGR matters, Promoting, Fostering Intergovernmental Relations and sector collaborations, Facilitating and Supporting Sports, Arts and Culture and Facilitate and coordinate Gender, Disability and HIV/AIDS function.
The Municipality is still having a challenge when it comes to integrated planning especially integration of programs and projects from some sector departments from Mpumalanga Provincial Government. The manner in which the private sector is participating in the local municipality planning process also needs to be improved through engagement as prescribed in the Municipal Systems Act.
The objectives of the IGR Unit in Lekwa are to;
Contribute knowledge and ideas about planning issues in the province and sectors;
Contribute relevant information on the provincial sector departments plans, programmes, budgets, objectives, strategies and projects in a concise and accessible manner;
Ensure that their objectives and strategies and projects take the local IDP into consideration and adjust their budgets as informed by the local IDP into consideration;
Engage in a process of alignment with the GSDM and other local municipalities, and participate in the provincial management system and co-ordination;
7.14. Community Participation One of the main features about integrated development planning process is the involvement of
community and stakeholder organizations in the process. Participation of affected and interested
parties ensures that the IDP addresses the real issues that are experienced by the citizen of Lekwa
Municipality. As part of its public participation process, the municipality has established the
following structures to promote community participation;
IDP Steering Committee
IDP Technical Committee
209 | P a g e F I N A L I D P 2 0 1 5 / 1 6
IDP Representative Forum
Traditional Leaders
Intergovernmental Relations (IGR)
HIV & AIDS Council
Transport forum
It should however be mentioned that due to the vastness of the Municipal area additional efforts should be made to ensure that public participation is meaningful.
The democratically elected stakeholders will be involved in the public participation process. However, to improve the effectiveness of the process, it is intended to split the participation in two ways.
Identifying of stakeholders, experts or professional bodies in communities.
Identifying of local representatives on grass-roots level through ward councillors. The process could follow the following route:
To identify all relevant participants per sector and per ward to inform them of the IDP processes.
To nominate councillors responsible for the IDP as well as responsible committees.
To advertise broadly through the local press for any stakeholders to identify themselves.
To initiate general consultative meetings of each critical step for the process of the IDP in order to gain fair consensus on the finding.
To workshop sectoral plans at each critical step, with all relevant local stakeholders per ward through the ward councillors.
The participation strategy will address the following issues:
Available resources for participation
Roles of different role-players during the participation process (e.g. councillors, the IDP Steering Committee, the IDP Representative Forum, other officials, consultants, etc.)
Appropriate participation tools
Means of information dissemination
Means of eliciting and collecting community needs (including documentation of participation inputs)
Time frames to allow responses, comments, inputs
Means of encouraging representation of unorganized groups
Frequency of meetings / workshops
Appropriate venue for the meetings / workshops
All efforts will be made to comply with the legal requirements of Public Participation
7.15. Risk Management Committee The Risk Management Committee has been established by the Municipality (Municipality) to assist the Municipal Manager to fulfil her/his Enterprise Risk Management (ERM) and control responsibilities in accordance with the requirements of the Municipal Finance Management Act (MFMA), 2003 and to assist Council with regard to matters set out in this document.
Purpose of Risk Management
The Risk Committee will provide oversight of the risk management process.
The Risk Committee will monitor the management of significant risks which may prevent the Municipality from meeting its objectives
210 | P a g e F I N A L I D P 2 0 1 5 / 1 6
The Risk Committee will facilitate communication between all parties engaged in risk management activities.
The Risk Committee will report to the Municipal Manager on the risk management work undertaken and the extent of any action taken by management to address areas identified for improvement.
Terms of Reference
The Municipal Manager is responsible for the total process of risk management, including ensuring that operating units under her/his controls have effective, efficient and transparent systems of financial management, risk management and internal control.
The Risk Committee shall:
Review and assess the integrity of the risk control systems and ensure that the risk policy and strategies are effectively managed;
Set out the nature, role, responsibility and authority of the Risk Management function within the Municipality and outline the scope of risk management work;
Monitor the management of significant risks to the Municipality, including emerging and prospective risks;
Together with the Municipality’s Senior Manager Legal Services, the Risk Committee will review any legal and regulatory matters that may have a significant impact on risk including any related compliance policies, programmes and reports received from government;
Review management and internal audit reports detailing the adequacy and overall effectiveness of the Municipality’s risk management process (including scope and depth) and its implementation by management;
Reviewing any findings and recommendations of the external auditors, internal auditors or other parties in relation to risk management and internal control, confirm that appropriate action has been taken;
To review and approve the risk policy, strategy and implementation plans. The Risk Committee will ensure compliance with such policies, and with the overall risk profile of the Municipality;
Review risk identification and assessment methodologies;
Review and approve the risk tolerance limits of the Municipality;
To have due regard for the principles of governance and codes of best practice;
Establishing the risk management framework/ guidelines (including the process and reporting requirements) to be used in managing and reporting on risk;
Monitoring the reporting of risk by management with particular emphasis on significant risks or exposures and the appropriateness of the steps management has taken to reduce the risk to an acceptable level;
Monitoring progress on action plans developed as part of the risk management process;
Reviewing the impact of any changes in the Municipality on the risk management process and the response to these changes including the update of the risk profile;
Developing and subsequently reviewing policy on fraud prevention, detection and investigation;
Evaluating the effectiveness of the Fraud and Corruption Policy;
Reviewing reports of significant incidents and major frauds (both potential and actual) including the elevation of the effectiveness of the response in investigating any loss and preventing future occurrences:
211 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Significant incidents are defined as any event which results in, or has the potential to result in serious personal injury (to the public, staff or third parties) or serious physical damage to property, plant, equipment, fixtures or stocks.
Providing feedback to the audit committee on the effectiveness of internal control having evaluated and managed.
Considering the key risks and assessing how which they have been identified, evaluated and managed.
Assessing the effectiveness of the related system of internal control having particular regard to the impact of weaknesses that have been reported.
Considering whether necessary actions are being taken promptly to remedy weaknesses.
Considering whether the findings indicate a need for more extensive monitoring of the system on internal control.
Ensuring that, in accordance with an appropriate cycle, the reports, taken together, cover all aspects of internal control.
Considering other risk management issues referred to it by the Municipal Manager.
Develop goals, objectives and key performance indicators to measure the effectiveness of the Risk Management Committee
7.15.1. RISK MANAGEMENT PLAN The Risk Management implementation Plan forms part of the Risk Management process of the municipality and must therefore be read in conjunction with inter-alia the Risk Management Policy, the Risk Management Strategy.
The Risk Management implementation Plan describes how the Risk Management Strategy is to be implemented during the 2015/16 financial year.
In the compilation of the Risk Management implementation Plan, the municipality adheres to the guidelines as suggested by the National Treasury.
The municipality reviews and updates its Risk Management implementation Plan on an annual basis.
PURPOSE
The Risk Management implementation Plan is prepared to give effect to the implementation of the Risk Management Policy and Strategy and it sets out all risk management activities planned for the 2015/16 financial year.
OBJECTIVE
The primary objective of risk management implementation plan is to facilitate the execution of risk management. The risk management implementation plan for the Institution was prepared to give effect to the implementation of the risk management policy and strategy and sets out all risk management activities planned for the 2015/16 financial year.
Approach
The development of the risk management implementation plan has taken into consideration:
the risk management policy;
the risk management strategy;
available resources;
212 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Urgency, quick wins and sustainability.
DETAILED RISK MANAGEMENT IMPLEMENTATION PLAN
The detailed risk management implementation plan is included below.
213 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Planned Action Detailed Actions Outputs Due date and responsible person
Progress to date
Develop risk management methodologies and processes
One on one and group meetings as well as workshops with all role prayers.
Approved risk assessment methodologies and processes
Chief Risk Officer
03 August 2015 – 14 August 2015
Facilitate enterprise-wide risk assessments.
Compilations of a draft enterprise risk register.
Circulating the draft enterprise risk register for comments/inputs.
Finalization of the enterprise risk register
Approved strategic risk register
Chief Risk Officer
30 August 2015
Distribution and publication of updated risk assessment for the 2015/16 financial year.
Email enterprise risk register together with Strategic and Unacceptable risks to Executive Management, MMC's, Chairpersons of Oversight Committees, Municipal manager, Risk Owners, Action owners, as well as the Chairperson of the Audit Committee and CAE
Approved operational risk registers (as per the agreed cycle)
Chief Risk Officer
01 September 2015
Implementation of Barn owl system(Risk management system)
Procurement and installation of Barn owl system for risk management process
Fully functional automated risk management system(Barn owl RM module)
Chief Risk Officer
01 July 2015
214 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Implementation of Barn owl system(Risk management system)
Barn owl training to relevant officials
Well trained officials on (Barn owl RM module)
Chief Risk Officer
31 July 2015
Raising awareness on fraud and corruption.
Develop and formalise detailed training programme/ plan for all officials and any cost implications.
Completed orientation for all officials.
Chief Risk Officer 03 August 2015 – 14 August 2015
Development of risk response strategies
Drafting action plans for all gaps identified in addressing the top risks.
Action plans implemented per agreed milestone
Risk Owner
On going
Drafting of individual key risk indicators for the top risks
Develop a mechanism of reporting on top 10 risks
Analysis report of key risk indicators per agreed frequency
Risk Owner
On going
Structures and responsibilities
The CRO to develop the risk management unit structure and Risk Management Committee and present it the Accounting Officer to review and recommend for approval by Council
Additional structure created and approved as required
Appointment
Accounting Officer / Council
30 June 2015
31 July 2015
In progress
215 | P a g e F I N A L I D P 2 0 1 5 / 1 6
into approved positions and structure
Enterprise risk audit per department
Perform a details risk audit per department to identify strategic, operational and compliance risk
ERM audit reports
Chief Risk officer
September – October 2015
Review of the audit report by Risk Management Committee(RMC)
Submit detailed audit findings report to RMC for inputs and comments
Review ERM audit report.
30 October 2015
Facilitate the execution of ERM processes and infrastructure.
Implement appropriate risk reporting to the Accounting Officer, Executive Authority, Audit Committee, RMC and Senior Management.
Approved progress reports: present progress reports to various stakeholders at various intervals.
Chief Risk Officer
Quarterly
Institutional Incident reporting
Collect detail incident report information to various department
Monthly incident report
Chief Risk Officer 10th of each month
Monthly dashboard reporting
Compile top 10 high risks and report them using dashboard reporting template
Individual risk dashboard report
Chief Risk Officer
Monthly(10th of each month)
Assess risks controls effectiveness
Assign assurance providers to assess the controls of medium and low risks identified (monitored risks).
Combined assurance plan
Report on risks controls assessed
Internal Audit
As per internal audit plan
Reviewal of Risk Review the risk management
policy, risk management strategy, Reviewed Chief Risk Officer,
216 | P a g e F I N A L I D P 2 0 1 5 / 1 6
management policies and strategies
Fraud and Corruption prevention plan, Fraud policy, submit to Risk Management Committee for reviewal.
policies
RMC
Apr 2016
Ensure risk management processes and methodologies are reviewed independently.
Audit of risk management effectiveness
Performance audit report
Status reports on risk management implementation.
Internal / External Audits
As per AG and internal audit plan
217 | P a g e F I N A L I D P 2 0 1 5 / 1 6
8. CHAPTER 8: INTEGRATED HUMAN SETTLEMENT AND DISASTER MANAGEMENT PLAN
8.1. DISASTER MANAGEMENT PLAN The Disaster Management Act (No 57 of the compilation of a Disaster Management Plan as part of the IDP. In order to comply with the requirements of the Municipal Systems Act, a disaster 2002) requires of local government to develop a disaster management policy and establish a disaster management centre in accordance to the national and provincial frameworks. The main responsibility for disaster management is assigned to District Municipalities in consultation with the local municipality to determine the level of the Prevention, mitigation, preparedness strategies.
8.1.1. The Purpose of Disaster Management Plan
The purpose of a Disaster Management Plan is to enhance the capacity of the municipality to prevent and to deal with disasters and to avoid developments, which are subject to high risk of disasters. Disaster Management Framework, Plan and Centre are interrelated. The scope of disaster management as required by the Act broadly entails three domains as outlined hereunder: -
Disaster Planning
Hazard identification
Risk and Vulnerability assessment
Disaster Preparedness and Response
Monitoring of threats
Activating contingency plans
Informing National & Provincial Centre
Deploying response resources to the scene of incident
Managing the resources
Monitoring of disaster intervention activities
Declaring of a “State of Disaster” Disaster Recovery
Planning for the recovery
Disaster recovery activities
Monitoring of disaster recovery activities
Documentation of disaster occurrences and actions taken
Post-mortem analysis to improve systems, plans and methodologies
Because the local municipality is not the responsible agency for disaster management, but form an integral part of disaster management within the district, a disaster management plan is produced. This plan addresses only the local municipal area of jurisdiction and will be aligned with the Disaster Management Plan of the Gert Sibande District and Mpumalanga Provincial Centre, once it is published.
218 | P a g e F I N A L I D P 2 0 1 5 / 1 6
8.1.2. POSSIBLE TYPES OF DISASTERS, COMMUNITIES AT RISK AND ITS EFFECTS
The following table indicates likely types of disasters, the communities at risk and the effects associated with these disasters:
TYPE OF DISASTER COMMUNITY AT RISK EFFECTS
Floods Low laying areas in Lekwa Municipality.
Loss of life
Loss of property and livestock
Damage to infrastructure
Leaking of hazardous substances, sewage, etc.
Disruption of economic and social activities
Lack of potable water
Spreading of diseases
Heavy snowfalls High lying areas, particularly along the borders and also along the R23 and other areas within Lekwa municipality
Loss of life
Loss of property and livestock
Damage to infrastructure
Disruption of economic and social activities
Lack of food and warm clothing
Veld fires Farming areas and informal settlements
Loss of life
Loss of property and livestock
Damage to infrastructure
Spreading of diseases
Disruption of economic and social activities
Drought Lekwa local but in particular farming areas
Loss of life
Loss of property and livestock
Damage to infrastructure
Spreading of diseases
Lack of food, Lack of potable water
Fires in built-up areas Lekwa, particularly densely populated settlements and CBD
Loss of life
Loss of property and livestock
Damage to infrastructure
Spreading of diseases
Transportation Accidents: Lekwa along major transportation networks
Loss of life
- Rail Loss of property and livestock
- Air Damage to infrastructure
- Road Spillage of hazardous substances
- Pipeline
Spillage of hazardous and toxic substances
Lekwa along major transportation networks.
Pollution
Health risks
Loss of biodiversity, Loss of life
Diseases Lekwa and the neighbouring community
Health risks, Loss of life
Loss of livestock
Unrest Lekwa Loss of life
Mass Events Loss of property and livestock
Damage to infrastructure
219 | P a g e F I N A L I D P 2 0 1 5 / 1 6
8.1.3. POSSIBLE PREVENTION AND MITIGATION MEASURES
The following table indicates likely types of disasters, the communities at risk and the possible mitigation measures to prevent disasters from happening:
TYPE OF DISASTER COMMUNITY AT RISK PREVENTION AND MITIGATION MEASURES
Floods Low laying areas, Standerton, Sakhile, Rooikoppen, TLC and Sivukile.
Prevent illegal occupation of land in low laying areas
Ensure that townships are established outside 1:50 year flood line
Plan open spaces along rivers and water courses
Heavy snowfalls High lying areas, particularly along the border
Ensure that buildings are properly constructed to cope with weight of snow on roof structures
Traffic accommodation
Salt placement (National Road Agency)
Early detection system
Effective communication lines between service delivery agencies
Information distribution
Emergency shelter and meals
Emergency patient treatment
Emergency communication system
Emergency rescue and extrication
Emergency administration functions
Emergency financial assistance
Veld fires Farming areas and informal settlements
Awareness campaigns
Pre-emptive burning
Firebreaks
Drought Lekwa but in particular farming areas
Improved farming practices
Storage of potable water source
Irrigation scheme
Fires in built-up areas Lekwa particularly densely populated settlements and CBD area
Fire hydrants
Density control measures
Fire walls between buildings
Transportation Accidents: Lekwa along major transportation networks
Improved road conditions
- Rail Regular maintenance of transportation infrastructure
- Air
- Road
- Pipeline
Spillage of hazardous and toxic substances
Along major transportation networks and workstations such as Engine and Spoor net
Lower driving speed of hazardous substances
Emergency response plan
Diseases Lekwa and its neighbouring community
Awareness campaigns
Emergency response plan
Unrest Lekwa Emergency response plan
Mass Events Lekwa, auditorium, stadiums and public halls
Emergency response plan
220 | P a g e F I N A L I D P 2 0 1 5 / 1 6
8.1.3. PREPAREDNESS AND INSTITUTIONAL CAPACITY
The municipality has fire brigade and traffic control service based in Standerton and a satellite
centre based in Sivukile which can be deployed as first responders to assist with disaster
management. The institutional capacity is therefore limited and outside assistance will be required
in cases of a disaster. It is also of utmost importance that the staff will attend further training in
various aspects.
Appointment of Disaster Management Advisory Forum
The Disaster Management Advisory Forum as outlined in the table below will constitute the Disaster
Management Team in terms of the regulations of the Disaster Management Act.
Members need to comply with the following:
Apply on the official form
Authorization in terms of Section 8 of the Act.
Residing within the area of jurisdiction of the local authority.
The Chief Disaster Management declared him to be a member and fit, physically as well as
mentally.
Be 14 years of age and above.
Commit him/her on the official application form to render services and to be trained.
221 | P a g e F I N A L I D P 2 0 1 5 / 1 6
DISASTER MANAGEMENT ADVISORY FORUM
DISASTER MANAGEMENT ROLE-PLAYERS CONTACT LIST
FUNCTIONARY INITIALS & SURNAME Cell No. Tel. No. Fax. No. Postal Address Email Address
OFFICE OF THE MAYOR Cllr. C.M.MORAJANE 079 886 5301 017-712-9635
017 712-6808 Lekwa municipality P.O. Box 66 Standerton 2430
MUNICIPAL MANAGER MR LB TSHABALALA 083 739 1075 0177129 660
017 712 1240
Lekwa municipality P.O. Box 66 Standerton 2430
DISASTER MANAGEMENT CENTRE
MR. N.J.A. KOCK
082 855 3497 0177 129 661 0177 125 551
177 129 661 Lekwa municipality P.O. Box 66 Standerton 2430
COMMUNITY SERVICES AND SAFETY
MS. M RADEBE 072 340 9434 017-7123- 549 0177 129 678
177 125 670 177 123 422
Lekwa municipality P.O. box 66 Standerton 2430
TECHNICAL & ENGINERRING
S.KOUNE 079 507 7983 0177 129 815 017712 9814 Lekwa municipality P.O. Box 66 Standerton 2430
ENVIRONMETAL & TOURISM
MR. J VAN WYK 0177 129 826 017 712 9814 Lekwa municipality P.O. Box 66 Standerton 2430
FINANCE MR K DUBA
082 958 5186 177 129 814 Lekwa municipality P.O. Box 66 Standerton 2430
CORPORATE SERVICES TM.GAMA 072 6873882 177 129 632 Lekwa municipality
222 | P a g e F I N A L I D P 2 0 1 5 / 1 6
P.O. Box 66 Standerton 2430
OFFICE OF THE MAYOR MR. S.B. MKHWANAZI
Lekwa municipality P.O. Box 66 Standerton 2430
WASTE MANAGEMENT MS. M.MADISHA Lekwa municipality P.O. Box 66 Standerton 2430
TRAFFIC MANAGEMENT Mr. G MOFOKENG 017 712 8802 Lekwa municipality P.O. Box 66 Standerton 2430
LEGAL SERVICES MR. S.S. NKOSI 074 847 9146 Lekwa municipality P.O. Box 66 Standerton 2430
IT MS. P. NCOKWANE 082 855 3538 Lekwa municipality P.O. Box 66 Standerton 2430
HOUSING MR. D. RADEBE Lekwa municipality P.O. Box 66 Standerton 2430
FIRE & RESCUE Mr. N.J.A.KOCK 082 855 3497 017 712 5551 017 712 5458
017 712 129 661 Lekwa municipality P.O. Box 66 Standerton 2430
OCCUPATIONAL HEALTH & SAFETY
MR. T. MOFOKENG
083 733 5471 177 129 645 Lekwa municipality P.O. Box 66 Standerton 2430
223 | P a g e F I N A L I D P 2 0 1 5 / 1 6
8.1.4. CONCLUSION
Each agency or state organ will be responsible for its own disaster management contingency plan
which will be submitted to the Disaster Management Centre for inclusion in the Municipal IDP.
These should focus mainly on the following aspects:-
Planning and framework – the way in which the concept of disaster management is to be
applied in its functional area, e.g. roles and responsibilities.
Risk and vulnerability Assessment leading to needs analysis
Evaluation and description of infrastructure
Prevention through risk elimination – remove hazards/alternative processes.
Mitigation through risk reduction – engineering solutions/legislative compliance/safety
culture
Preparedness planning for risks that cannot be eliminated (Risk Management) (a)
contingency planning based on risk and vulnerability (b) emergency Organization, (c)
response planning, (d) notification and activation, (e) recovery plans for business continuity.
Contingency strategies and emergency procedures in the event of a disaster.
Line of communication (Protocols) and liaison
Awareness and education – (Before) prevention and mitigation: (During) notification and
advisories: (After) Advisory, public information and education.
Evaluation and maintenance
224 | P a g e F I N A L I D P 2 0 1 5 / 1 6
8.2. INTEGRATED HUMAN SETTLEMENT CHAPTER The Housing Sector Plan/ Housing Chapter is a summary of the housing planning undertaken by a municipality and should be used together with the IDP. The Housing Chapter is a 5 year plan which is reviewed annually. It should be done as part of the IDP process and the summary of the housing planning undertaken becomes a chapter in the IDP. Therefore it is not a comprehensive, stand-alone plan resulting from a separate planning process. The Housing Sector Plan/ Housing Chapter, and its contents, in the context of sustainable human settlements, would consist of:
An analysis of the housing demand;
A strategy for the supply of housing;
A set of designed and prioritized housing projects;
The integration of the housing strategies and projects with the other sectors to achieve sustainable human settlements; and
An adopted IDP with a Housing Chapter.
Settlement Households
Land Ownership
Services Geo-tech Environmental Impact assessment
Township Establishment
Sakhile Ext. 1
224 Municipal land
Sewer, water, roads, toilet, and electricity
Not done Not done Done
Sakhile Ext 2
600 Residents owned
Sewer, water, roads, toilet and electricity
Done Not done Done
Sakhile Ext 3
235 Municipal land
Sewer, water, roads, toilet, and electricity
Not done Not done Done
Sakhile Ext 4 (known as Roolkoppen)
3276 Municipal land
Sewer, water, and 75% roads
Not done Not done Done
Sakhile Ext. 5 (TLC)
179 Municipal land
Sewer, water, roads, toilet, and electricity
Not done Not done Done
Standerton Ext 6
1800 Municipal land
Sewer, water, roads, toilet and electricity
Not done Not done Done
Azalea Ext 1 (H-Camp & Mahala Park)
454 Municipal land
Water Not done Not done Done
Sakhile Ext 4
282 Municipal land
Sewer, water, and 30% roads
Not done Not done Done
H-camp 189 Municipal land
Sewer, water, and roads
Not done Not done Done
225 | P a g e F I N A L I D P 2 0 1 5 / 1 6
8.2.1. The main purposes of the Housing Sector Plan are:
To ensure the effective allocation of limited resources (specifically financial and human) to a large pool of potential development interventions.
To provide a formal and practical method of prioritizing housing projects and obtaining political consensus for the sequencing of their implementation.
To ensure more integrated development through bringing together the relevant cross-sectoral role players to coordinate their development interventions in one plan.
To provide greater spatial linkages between the spatial development framework and the physical implementation of projects on the ground.
To ensure that there is a definite housing focus for the IDP.
To provide a critical link between integrated developments planning and the practical reality of delivering housing projects on the ground.
To ensure effective subsidy budgeting and cash flows both at the local municipal and provincial levels.
8.2.2. The main expected outputs from the Housing Sector Plan are:
A priority implementation list of the relevant housing projects in the municipal area.
Preliminary assessment of the technical and social feasibility of all projects in the municipal area.
Confirmation of IDP linkages for all prioritized projects.
Coordination of MIG and other funding for projects.
Confirmation of stakeholder involvement in the development process.
Cash flows and broad project programmes.
Transfer of skills to Local Municipalities.
In the case of Lekwa the Housing Sector Plan should include a Rural Housing Strategy. The general aim of the strategy is the eradication of rural housing backlog and the enhancement of the quality of housing. The strategy should address the following:
Lack of reliable data on the nature and extent of the housing backlog.
Identification of need of rural communities.
The need to create new or adjust existing subsidy mechanisms to accommodate the challenges of farm worker accommodation.
Identification of well-located and suitable land for housing development.
The provision of basic services could prove a challenge if houses are to be built on private property.
The ability of farm workers and occupiers to sustain the cost of housing and associated rates and service charges that will arise in most off-farm settlement options.
Identification of different housing typologies.
The capacity of the municipality, within rural contexts, to manage planning of service provision.
The strategy will contribute to poverty alleviation, infrastructure development, job creation and the absence of basic services.
In the case of Lekwa a Compaction and Densification Strategy should be developed for Standerton and Sakhile. It should deal with new densities, mixed use nodal forming, infill development and redevelopment of lower density areas. The strategy’s more specific objective is to:
Ensure optimal and efficient use of infrastructure, services, facilities and land.
226 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Support the development of a viable public transport system and improve levels of access, especially by the poor, to the City’s resources and amenities.
Provide a framework and guidelines for the assessment of development proposals that promote densification.
Provide homeowners and property investors with certainty regarding the areas that will be targeted for various types of densification.
Protect, manage and enhance the natural and built environment and significant cultural landscapes.
Ensure that the scale and character (in terms of bulk, height, and architectural styling if necessary) of the higher density areas is appropriate to the immediate context.
Support the development of mixed land uses providing for vitality, opportunities and integrated living environments.
Contribute to place-making and the development of attractive and safe urban environments
Distribution of Informal Settlements
227 | P a g e F I N A L I D P 2 0 1 5 / 1 6
9. CHAPTER 9: MUNICIPAL TRANSFORMATION & INSTITUTIONAL DEVELOPMENT
9.1. MUNICIPAL COUNCIL The Lekwa Council consists of 30 Councillors, made up of 15 ward councillors and 15 proportional representative councillors. The African National Congress
has 23 councillors, the Democratic Alliance with 6 councillors, the PAC with 1 councillor. There are 12 women councillors and 18 male councillors.
Fig: The Municipal Council Members
228 | P a g e F I N A L I D P 2 0 1 5 / 1 6
9.2. The Structure of Troika & Mayoral Committee In addition to the Mayoral Committee the following committees have been appointed in terms of Section 80(1) of the Local Government Structures Act 117 of 1998:
229 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Chief Whip
Executive Mayor
MMC Corporate Services & Community Services
MMC Technical Services & Development
Planning
Speaker
230 | P a g e F I N A L I D P 2 0 1 5 / 1 6
9.3. ORGANIZATIONAL DESIGN
Divisions o Legal Services
o Secretariat Services
o Human Resources
o Intergovernmental
Relations
o Communication
o Information
Technology
o Office of the
Executive Mayor
o Office of the Speaker
o Office of the Chief
Whip
LEKWA LOCAL MUNICIPALITY FUNCTIONAL AREAS Approved 31 Mar 2015 (Q3)
Executive Manager Corporate
Services Budget & Treasury Office Executive Manager Technical
Services Executive Manager Community
Services & Safety
Municipal Manager
Divisions Electro-Mechanical
Maintenance Electricity and
Transport
Water & Sanitation
Roads and Works
Project Management Unit
Divisions Traffic and Safety
Licensing
Fire and Disaster
Management Environment, Sport,
Recreation, Arts &
Culture Environmental Health
Services
Libraries
Divisions Budget & Financial
Reporting Income
Expenditure
Debt Collection
Supply Chain
2014/2015
1
Executive Manager Development and Planning
Divisions Land Development &
Planning Integrated
Development and Planning
Town Planning
Human Settlement
Local Economic Development
Projects
4/10/2015 Lekwa Local Municipality Approved Organogram 2014/2015
231 | P a g e F I N A L I D P 2 0 1 5 / 1 6
LEKWA LOCAL MUNICIPALITY OFFICE OF THE MUNICIPAL MANAGER 2014/2015
Approved 31 Mar 2015 (Q3)
Municipal Manager LB Tshabalala
800060
Senior Manager Internal Audit
Vacant
Secretary to the Municipal Manager
KP Gamede – 800116
Internal Audit
Officer P Sibanyoni
800058
Internal Audit
Officer H. Raletsoho
800477
3
Manager Satellite Office Morgenzon
TS Khumalo - 211101
Vacant (0) Unfunded Vacant - Funded
Manager PMS B Tilly 116334
Manager Risk B.T. Hlatshwayo
800498
Manager in Office of the Municipal Manager
Vacant (0)
232 | P a g e F I N A L I D P 2 0 1 5 / 1 6
LEKWA LOCAL MUNICIPALITY CORPORATE SERVICES OFFICE OF EXECUTIVE MANAGER CORPORATE SERVICES 2014/2015
Executive Manager Corporate Services S.S. Nkosi - 800479
Manager H. Resources ZJ Mtsweni
011072
Manager Secretariat TM Gama
710087
31 Mar 2015 (Q3)
Secretary to the Executive Manager Corporate Services
S. Bok - 111111
Approved
10
Senior Legal Administration Officer
Vacant 2014-11-18
Manager IGR T Mtshiselwa
116630
IT Manager Vacant
Manager Communication
Vacant (0)
Manager in the Office of the Executive Mayor SB Mkhwanazi-312303
Manager in the Office of the Speaker
D Galela-111094
Manager in the Office of the Chief Whip S. Mjiyako
233 | P a g e F I N A L I D P 2 0 1 5 / 1 6
LEKWA LOCAL MUNICIPALITY BUDGET & TREASURY OFFICE OFFICE OF THE CHIEF FINANCIAL OFFICER
2014/2015 Approved
31 Mar 2015 (Q3)
Chief Financial Officer Vacant 2014-11-08
Secretary to the Chief Financial Officer
I Edwards - 510878
Manager Budget & Financial Reporting KN Duba - 800057
Deputy Chief Financial Officer
Vacant
Supply Chain Manager L Joubert 210837
Manager Income MJ Jacobs
210789
Manager Expenditure S. Mamabolo
800003
21
Manager Debt Collection & Indigent - Vacant
234 | P a g e F I N A L I D P 2 0 1 5 / 1 6
LEKWA LOCAL MUNICIPALITY COMMUNITY SERVICES AND SAFETY OFFICE OF EMCSS 2014/2015
Approved 31 Mar 2015 (Q3)
Executive Manager Community Services & Safety
M.E. Radebe 800497
Chief Fire & Disaster Management Officer NJA Kock - 800114
Chief Traffic Officer TL Mofokeng
800042
Manager Environment, Sport,
Recreation, Arts & Culture
HL Bronkhorst - 510839
Chief Licensing Officer RM Jackson
101827
Secretary ME Mphuthi
800076
35
Manager Environ. Health JG Van Wyk
310175
Chief Librarian Vacant
Operational Manager Vacant (0)
235 | P a g e F I N A L I D P 2 0 1 5 / 1 6
LEKWA LOCAL MUNICIPALITY TECHNICAL SERVICES OFFICE OF THE EXECUTIVE MANAGER TECHNICAL SERVICES 2014/2015
Approved 31 Mar 2015 (Q3)
Secretary Vacant 2014-12-26
Executive Manager Technical
Services
Vacant
Call Center Operator TJ Mogomotsane
800092
Manager Electricity & Transport
M.M. Mabunda -
800495
43
Call Center Operator Vacant
Manager Water & Sanitation
M. Legodi - 800481
Manager Roads & Works
Z. Mngadi - 800400
Project Management Unit
S. Kuona - 800434
Engineer Electro-Mechanical Maintenance
Vacant
236 | P a g e F I N A L I D P 2 0 1 5 / 1 6
50
LEKWA LOCAL MUNICIPALITY DEVELOPMENT AND PLANNING OFFICE OF THE EXEC. MANAGER DEV. & PLANNING 2014/2015 31 Mar 2015 (Q3)
Approved
Executive Manager Development
& Planning S.T. Matladi - 800458
Manager Land & Planning
J Prinsloo - 411201
Manager Housing DD Radebe
102028
Manager LED R Mkhabela
800273
Secretary to the Executive Manager Development & Planning
G.P. Malinga - 800450
Manager Town Planning Vacant
Projects Manager SD Dlamini
102116
Manager IDP KE Mahlangu
800025
237 | P a g e F I N A L I D P 2 0 1 5 / 1 6
9.4. HUMAN RESOURCE DEVELOPMENT STRATEGY
9.4.1. OVERVIEW
The Human Resource strategy responds to the long-term development plans of the municipality as reflected in the Integrated Development Plan of the municipality. The HR profile of the municipality is reflective of the local community and the country. It includes all activities relating to the rendering of a comprehensive human resource management function to Council by ensuring an efficient personnel administration system, recruitment and selection, sound labour relations, human resources development, employment equity, occupational health and safety of employees and compliance with all relevant labor legislation. Our staff is informed and supportive of municipality vision and mission and strategic direction and has knowledge of vacancy rates in the municipality.
Occupational Levels Male
Female
Foreign
Nationals
Total
A C I W A C I W Male Female
Top management 3 0 0 0 0 0 0 0 0 0 3
Senior management 7 0 0 7 3 0 0 0 1 0 18
Professionally qualified and experienced specialists and mid-management
4 1 1 0 2 0 0 0 0 0 8
Skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents
67 4 0 15 55 6 0 5 0 0 152
Semi-skilled and discretionary decision making
50 0 0 3 3 0 0 0 0 0 56
Unskilled and defined decision making
221 1 0 0 29 2 0 0 0 0 253
TOTAL PERMANENT 352 6 1 25 92 8 0 5 1 0 490
Temporary employees 29 0 0 0 20 0 0 0 0 0 49
GRAND TOTAL 381 6 1 25 112 8 0 5 1 0 539
238 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Employees with disabilities only in each of the following occupational levels: Note: A=Africans, C=Coloureds, I=Indians and W=Whites
9.4.2. Organizational review
An analysis of the workforce profile of the Lekwa Local Municipality (see table above) reveals the following:
Gender representation/composition in the total workforce: Black Males account for 73.27% against Black Females of only 20.41% when the Economically Active Population figures indicate 49.50% and 42.20% respectively. Black Males must be brought down to 49.50% and Black Females more than doubled to 42.20% of the workplace profile in line with the EAP figures. One of the priorities must therefore be to increase Black Female representation across all occupational categories and levels from the current 20.41% to 42.20%. People with disabilities in the total workforce: People with disabilities account for only 0.61% of the total workforce as against the 2 % of the government undertaking to reach as target by 2010. People with disabilities generally still continue to hover below the 1% mark. Government initially made an undertaking that the representation of people with disabilities should have constituted 2% of the Public Service by the end of 2005. However, this was not reached and government moved the achievement of the 2% target to 2010. We are now in 2012 and the representation of people with disabilities both in government and in the private sector is still well below the 1% mark.
Occupational Levels Male
Female
Foreign
Nationals
Total
A C I W A C I W Male Female
Top management 0 0 0 0 0 0 0 0 0 0 0
Senior management 0 0 0 0 0 0 0 0 0 0 0
Professionally qualified and experienced specialists and mid-management
0 0 0 0 0 0 0 0 0 0 0
Skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents
1 0 0 0 0 0 0 1 0 0 2
Semi-skilled and discretionary decision making
0 0 0 0 0 0 0 0 0 0 0
Unskilled and defined decision making
1 0 0 0 0 0 0 0 0 0 1
TOTAL PERMANENT 2 0 0 0 0 0 0 1 0 0 3
Temporary employees 0 0 0 0 0 0 0 0 0 0 0
GRAND TOTAL 2 0 0 0 0 0 0 2 0 0 3
239 | P a g e F I N A L I D P 2 0 1 5 / 1 6
The municipal main goals/objectives of the institution are to achieve equity in the workplace through the promotion of equal opportunities and fair treatment for all its employees, as well as applicants for employment by:
Eliminating unfair discrimination that may exist in policies, practices, procedures and the work environment.
Implementing affirmative action measures to redress the disadvantages experienced by designated groups in the past.
Promoting diversity and respect for all employees.
Achieving equitable representation of all demographic groups at all levels and in all categories of the workforce as ultimate tangible objective.
9.4.3. EMPLOYMENT PRACTICE POLICY
This policy is intended to create a framework for decision‐making in respect of employment practice/s in the Lekwa Local Municipality. As such it attempts to establish a set of rules for the consistent interpretation and application of collective agreements and legislation governing the acquisition of staff by the Lekwa Local Municipality.
9.4.4. TRAINING AND DEVELOPMENT POLICY
The Lekwa Local Municipality believes that its employees form the cornerstone of service delivery to the communities within the Municipality. It therefore adopts a policy of giving priority to the training and development of its staff, within the parameters at what is feasible and sensible in the context of the municipality’s resource deployment requirements. It will identify and assess the training needs and potential of staff, match it with the requirements of the Municipality and afford all employees the opportunity to develop their potential, improve their performance and advance their career prospects within the municipality. Special attention will be paid to training and development opportunities for employees belonging to designated groups.
9.4.5. STAFF RETENTION POLICY
The objective of this policy is to establish an environment which will best ensure the retention of employees within the municipality, especially employees with valued or needed skills or experience in critical fields, so as to enable the Municipality to fulfill its functions, including that of service delivery.
9.4.6. PERFORMANCE MANAGEMENT POLICY
The objectives of implementing a performance management system include:
Facilitates strategy (IDP) deployment throughout the municipality and align the Organization in executing its strategic objectives;
Facilitate increased accountability;
Continues and sustainable service delivery improvement;
Create an organizational performance culture;
Provide early warning signals;
Develop open and constructive relationship between customers, leadership and employees;
Encourage reward for good performance;
Manage and improve poor performance;
Link performance to skills development and career planning, therefore encourage learning and growth; and Comply with legislative framework.
240 | P a g e F I N A L I D P 2 0 1 5 / 1 6
9.4.6. HEALTH AND SAFETY POLICY The Lekwa Local Municipality and its staff believe that the prevention of injuries and exposure to disease of all the employees is of paramount importance to the organisation in its quest to be a leader in health and safety. Furthermore, management acknowledges its responsibility and moral obligation to provide a safe and healthy workplace. We will strive to be proactive in the recognition of risks with the objective of reducing exposure to injury and disease. Involvement will be at all levels and the responsibility will be shared by everyone, in order to reach the objectives.
9.4.7. EMPLOYMENT EQUITY POLICY
The purpose of this policy is to state the broad principles of employment equity to which the Municipality is committed and to describe in general how the Municipality seeks to realise these principles. This policy document does not constitute the Employment Equity Plan of the Lekwa Local Municipality, but simply sets out the framework and guiding philosophy that will govern an Employment Equity Plan.
9.4.7. HUMAN RESOURCE PLAN
The Human Resource Plan will focus mainly on three levels: entry level, internal environment management level and exit level
241 | P a g e F I N A L I D P 2 0 1 5 / 1 6
ENTRY OF PEOPLE (Recruitment, selection, induction and orientation, remuneration and benefits )
PRIORITY PROJECTS OUTPUT DUE DATE BUDGET
ENTRY LEVEL Review of the organizational structure Revised organizational structure Dec 2016 R0 Develop a Human Resource Recruitment and Retention Strategy
Human Resource Recruitment and Retention Strategy
Dec 2014 R0
Ensure qualitative implementation of the Employment Equity Plan
Realization of set employment equity targets with regard to gender and people with disabilities in Employment Equity Plan
Jun 2016 R0
Management of all leave types Leave Management Module Dec 2014 R0 DEVELOPMENT OF PEOPLE
(Training, Promotion and Progression, Performance and Talent Management, Culture, Leadership etc)
PRIORITY PROJECTS OUTPUT DUE DATE BUDGET INTERNAL ENVIRONMENT MANAGEMENT LEVEL
Develop and update Job Descriptions Job Descriptions Dec 2014 R0 Develop Human Resource Development Strategy
Human Resource Development Strategy Jun 2014 R0
Ensure implementation of the Workplace Skills Plan to at least 80% of planned training
Workplace Skills Plan and Training Report Jun 2014 R0
Publicize all newly developed and adopted HR policies
Register of inducted employees Dec 2014 R0
Conduct employees satisfaction survey Report on the survey Dec 2015 R100 000
EXIT OF PEOPLE (Death, Injury on Duty, Terminal illness, Retirement Resignation and Dismissal)
PRIORITY PROJECTS OUTPUT DUE DATE BUDGET
EXIT LEVEL Determination of future (five years) human resource requirements – Human Resource Planning
Human Resource Requirements (five years) Sep 2014 R0
Ensure compliance with the Occupational Health and Safety Act
Implementation of the Occupational Health and Safety Policy
Dec 2014 R0
Introduce medical surveillance programmes Periodical medical surveillance report Jun 2015 R100 000
242 | P a g e F I N A L I D P 2 0 1 5 / 1 6
RM OPERATIONAL PLAN (in order of priority)
STRATEGIC GOAL NAME OF HR
PROJECT KEY MILESTONE YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 CURRENT STATUS
Ensure alignment of organogram to the Integrated Development Plan (IDP).
Review the organizational structure
Organizational structure aligned to IDP
Expert advice obtained on the current structure, reviewed and consultation undertaken
Necessary approval obtained and new organizational structure implemented
Current structure not properly aligned to IDP
Recruitment of competent staff.
Develop Human Resource Recruitment Strategy
Human Resource Recruitment Strategy
Draft strategy developed and consultation undertaken
Strategy approved and implemented
No Human Resource Recruitment Strategy in place
Redress gender imbalances.
Ensure qualitative implementation of the Employment Equity Plan
Employment Equity Plan
Seventy five percent (75%) of employment equity targets for 2014/2015 with regard to gender and disability realized
Eighty percent (80%) of employment equity targets for 2015/2016 with regard to gender and disability realized
Ninety percent (90%) Employment equity targets for 2016/2017 with regard to gender and disability realized
Employment Equity targets currently not realised
Promote culture of performance in the municipality.
Management of all leave types
Leave managed to in line with the conditions of service (SALGBC agreements)
Re-introduce the leave Schedule in all departments and improve monitoring and reporting on the different leave types
Monitor and control absenteeism
Some adverse findings by Auditor General
Promote culture of performance in the municipality.
Development and update of Job Descriptions
Job Descriptions for all jobs in the municipality and updated periodically
Officials trained in the writing of Job Description and JD developed
New Job Descriptions implemented
Certain jobs without Job Descriptions and most not up-dated
243 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Training and development to ensure responsiveness.
Develop Human Resource Development Strategy
Human Resource Development Strategy
Draft Strategy and consultations
Strategy approved and staff inducted
Strategy merged in municipal processes
No Human Resource Development Strategy in place
Training and development to ensure responsiveness.
Ensure implementation of Workplace Skills Plan to at least 80% of planned training
Eighty percent (80%) implementation of the Workplace Skills Plan
Seventy percent (70%) implementation of the Workplace Skills Plan
Eighty percent (80%) implementation of the Workplace Skills Plan
Workplace Skills Plan implemented at 50% of planned
STRATEGIC GOAL NAME OF HR PROJECT
KEY MILESTONE YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 CURRENT STATUS
Promote culture of performance in the municipality.
Publicize all newly developed and adopted Human Resource Policies
All employees inducted on the newly developed Human Resources Policies
Inducted all employees on the newly developed HR Policies
Draft Human Resources Policies
Promote culture of performance in the municipality.
Conduct employee satisfaction survey
Employee satisfaction survey report
Survey conducted and results interpreted
Implementation of recommendations of the survey and measurement of progress
Employee morale low.
Promote culture of performance in the municipality.
Determination of future (five years) human resource requirements – Human Resource Planning
Human Resources requirements (five years)
Database of vacancies (projections) in the next five years created
Human Resource Policy developed, consultation undertaken and approval obtained
No projections on future human resource requirements
Ensure safety and healthy environment.
Ensure compliance with the Occupational Health and Safety Act
Compliance with the Occupational Health and Safety Act
Occupational Health and Safety Committee re-established, members trained
Occupational Health and Safety meetings held quarterly
Some compliance with Health and Safety Act
244 | P a g e F I N A L I D P 2 0 1 5 / 1 6
and monthly meetings held
Ensure safety and healthy environment.
Introduce medical surveillance programs in line with the Occupational Health and Safety Policy
No medical surveillance programs
245 | P a g e F I N A L I D P 2 0 1 5 / 1 6
10. CHAPTER 10 PROGRAMMES AND PROJECTS FOR 2015/2016
10.1. WATER AND SANITATIONS PROGRAMME
Project Code
Project Classification
Project Description Ward Budget Implementing Agent
Source
WS001 Water and Sanitation Upgrading of the Standerton Waste Water Treatment Works
4 R15 M Technical Services
MIG
WS002 Water and Sanitation Installation of Bulk Water Infrastructure and Replacement of AC pipes in Lekwa Local Municipality
Cross-cutting wards
R9 M Technical Services
MIG
WS003 Water and Sanitation Installation of Boreholes in Lekwa Municipality in farm areas
9,12,& 13 R1,5 M Technical Services
MIG
WS004 Water and Sanitation Installation of Sanitation services in Rural areas of Lekwa LM
9,12,& 13 R1,3 M Technical Services
MIG
WS005 Water and Sanitation Project Management Unit R1.4 M Technical Services
MIG
WS006 Water and Sanitation Operations and maintenance support Cross-cutting wards
R3,000 M Technical Services
GSDM
WS007 Water and Sanitation Water Quality testing Cross-cutting wards
R350,000 Technical Services
GSDM
WS008 Water and Sanitation Water conservation and demand management
Cross-cutting wards
R2,000 M Technical Services
GSDM
246 | P a g e F I N A L I D P 2 0 1 5 / 1 6
10.2. INTEGRATED HUMAN SETTLEMENT PROGRAMME
Project Code
Project Classification Project Description Ward Budget Implementing Agent
Source
IHS001 Adequate housing and improved quality environment 250 units in informal settlements
Ext 6 & 7 R10 800 IHS DHS
IHS002 Adequate housing and improved quality environment 10 units in informal settlements
Ext 6 & 7 R27 737 IHS DHS
IHS003 Adequate housing and improved quality environment 10 units in informal settlements
Ext 6 R1 109 IHS DHS
IHS004 Adequate housing and improved quality environment
250 UNITS IRDP Phase two Various areas R27 737 IHS DHS
IHS005 Adequate housing and improved quality environment 10 Units IRDP Phase two Various areas R1 109 IHS DHS
IHS006 Adequate housing and improved quality environment 10 Units IRDP Phase two Various areas R1 109 IHS DHS
247 | P a g e F I N A L I D P 2 0 1 5 / 1 6
10.3. SASOL SLP/LOCAL ECONOMIC DEVELOPMENT PROGRAMME
Project Code
Project Classification Project Description Ward Budget Implementing Agent
Source
SRMD001 Mine community development Rural water provision Ward 9, 12,13 R3,1M DP SASOL
SRMD002 Mine community development Installation of electricity Transformer Cross-cutting R17 M DP SASOL
SRMD003 Mine community development Construction of a fire station and related vehicles
Cross-cutting 12M DP SASOL
SRMD004 Mine community development Multi-purpose centre Location to be decided
R6 M DP SASOL
248 | P a g e F I N A L I D P 2 0 1 5 / 1 6
10.4. ELECTRICITY PROGRAMME
Project Code
Project Classification
Project Description Ward Budget Implementing Agent
Source
ELE001 Energy and electricity Electrification of RDP house in Standerton Extension 8
9 R1.7 M Technical Services
INEP
ELE002 Energy and electricity Electrification of 53 rural houses 11 R1.5 M Technical Services
INTERNAL
10.5. EDUCATION PROGRAMME
249 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Project Code
Project Classification Project Description Ward Budget Implementing Agent
Source
CIJ001 CIJA PRIMARY SCHOOL
CIJA PRIMARY SCHOOL Demolishing of existing pit toilets and construction of 4 new ablution units
WARD 9 R443 172
DOE DOE
EMT001 EMTHINI PRIMARY SCHOOL
Demolishing of existing pit toilets and construction of 4 new ablution units
WARD 13 R443 172
DOE DOE
FUD001 FUDUQHUBEKA PRIMARY SCHOOL Demolishing of existing pit toilets and construction of 4 new ablution units
WARD 13
R639 758
DOE DOE
GUD001 GUQUKA PRIMARY SCHOOL Demolishing of existing pit toilets and construction of 4 new ablution units
WARD 13 R443 172
DOE DOE
INS001 INSIMBI PRIMARY SCHOOL
Demolishing of existing pit toilets and construction of 4 new ablution units
WARD 13 R443 172
DOE DOE
ISIF001 ISIFISISETHU PRIMARY SCHOOL
Demolishing of existing pit toilets and construction of 31 new ablution units
WARD 15 R3 147 083
DOE DOE
ISUY001 ISIYALU PRIMARY SCHOOL Provision of bulk power (electricity) and connection of existing buildings
WARD 9 R1500000 DOE DOE
JAN001 JANRELL SECONDARY SCHOOL
Demolishing of existing pit toilets and construction of 26 new ablution units
WARD 9 R2 655 618
DOE DOE
250 | P a g e F I N A L I D P 2 0 1 5 / 1 6
KLIP001 KLIPPOORT PRIMARY SCHOOL
Demolishing of existing pit toilets and construction of 12 new ablution units
WARD 9 R1 377 809
DOE DOE
MAT001 MATALAZA PRIMARY SCHOOL
Demolishing of existing pit toilets and construction of 6 new ablution units
WARD 9 R639 758
DOE DOE
OUD001 OUDEHOUTSPRUIT PRIMARY SCHOOL
Demolishing of existing pit toilets and construction of 4 new ablution units
WARD 9 R443 172
DOE DOE
RIET001 RIETSPRUIT PRIMARY SCHOOL
Demolishing of existing pit toilets and construction of 4 new ablution units
WARD 12 R443 172
DOE DOE
ROND001 RONDAVEL PRIMARY SCHOOL
Demolishing of existing pit toilets and construction of 8 new ablution units
WARD 9 R836 344
DOE DOE
SKOOT001 SKOONUITSIG PRIMARY SCHOOL
WARD 13 R836 344
DOE DOE
COT001 COTHOZA PRIMARY SCHOOL
Demolishing of existing pit toilets and construction of 4 new ablution units
WARD 13 R443 172 DOE DOE
10.6. ENVIRONMENTAL PROGRAMME
251 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Project Code
Project Classification Project Description Ward Budget Implementing Agent
Source
W001 Waste Management Conduct Environmental Impact Assessment for Development of a New Cell at Morgenzon Landfill Site
Ward 14 R1000 000 DEDET DEDET
PC001 Parks & Cemetery Rehabilitation of River Park Ward 10 R623 MIG MIG
PC002 Parks & Cemetery Development of New Cemetery for Lekwa LM
Municipal wide R550 DEDET DEDET
10.7. SECTOR PLANS PROGRAMME
252 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Project Code
Project Classification Project Description Ward Budget Implementing Agent
Source
RS001 Roads and storm water Review of Pavement management System plan
Municipal wide R600 Technical Services
Lekwalm
RS002 Roads and storm water Storm-water master plans Municipal wide R600 Technical Services
Lekwalm
FD001 Fire and disaster Disaster management plan Municipal wide R600 CSS Lekwalm
DP001 Development Planning Incentive and Investment Strategy Municipal wide R600 DP Lekwalm
DP002 Development Planning Tourism Development & Branding Strategy
Municipal wide R600 DP Lekwalm
MM001 MM Office Performance Management Framework
Municipal wide R600 MM Lekwalm
DP003 Development Planning Encroachment Policy Municipal wide R350 DP Lekwalm
E001 Electricity Electricity Master plan Municipal wide R700 Technical Services
Lekwalm
DP004 Development Planning Land Use Management By-Law (SPUMA)
Municipal wide R100 000 DP Lekwalm
DP005 Development Planning Bulk Contribution Policy –
Municipal wide R100 000 DP Lekwalm
DP006 Development Planning Densification in Stan-west to create +/-140 residential stands –
Municipal wide R4 000 000 (Excluding infrastructure)
DP Lekwalm
10.7. TRAFFIC & SAFETY PROGRAMME
253 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Project Code
Project Classification Project Description Ward Budget Implementing Agent
Source
TS001 Ensure compliance to the Road Traffic Act
Traffic Law Enforcement
All Wards
Operational
Road Safety & Community Liaison
RSCL
TS002 Implementing road safety education programmes
Road Safety Education
All Wards
Operational Road Safety & Community Liaison
RSCL
TS003 Ensure compliance to the Road Traffic Act
Traffic Administration and Licensing
All Wards
Operational
Road Safety & Community Liaison
RSCL
TS004 Ensure compliance to the Road Traffic Act
Overload control
All Wards
Operational
Road Safety & Community Liaison
RSCL
TS005 Educational Awareness Campaigns
Conducting educational awareness campaigns to fight against crime
All Wards
Operational
Road Safety & Community Liaison
RSCL
TS006 Integrated crime prevention initiatives
Conducting educational awareness campaigns to fight against crime
All Wards
Operational
Road Safety & Community Liaison
RSCL
TS007 Tourism Safety Monitors Lekwa: Standerton (9) Total = 9
Tourist Safety Education
All Wards
Operational
Road Safety & Community Liaison
RSCL
TS008 Monitoring and evaluation of police stations
Monitoring of SAPS to provide service to communities
All Wards
Operational
Road Safety & Community Liaison
RSCL
TS009 Domestic Violence Act audits
Monitor compliance to implementation of the
All Wards
Operational
Road Safety & Community Liaison
RSCL
254 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Domestic Violence Act
255 | P a g e F I N A L I D P 2 0 1 5 / 1 6
10.8. ANGLOAMERICAN PROGRAMMES
Project Code
Project Classification Project Description Ward Budget Implementing Agent
Source
ANG001 Anglo Community Development 4X Gravity Compactor Refuse 4x Rea Load Compactor 1x Landfill Compactor 4x Tipper Truck 2x Front-End Loader 1X Personnel Bus
Municipal wide R16,374,636 Technical New Denmark
ANG002 Anglo Community Development Storm-water Drainage System Municipal wide R2,000,000 Technical New Denmark
ANG003 Anglo Community Development Maths and Science Investment Municipal wide R2,000,000 Technical New Denmark
ANG004 Anglo Community Development Vegetables and Hydroponics Municipal wide R9,162,438 Technical New Denmark
256 | P a g e F I N A L I D P 2 0 1 5 / 1 6
11. CHAPTER 11: MUNICIPAL SECTOR PLANS
The following are some of the significant sector plans or programmes that are available in the Municipality in order to ensure the effectiveness and efficient implementation of the IDP.
11.1. LAND-USE MANAGEMENT SYSTEM (To be developed for Council adoption)
The objective of this plan is to formulate, develop and implement appropriate planning instruments to effectively guide and control land use and development, which will protect and enhance property ownership and value, and which will establish a balanced living environment.
The LUMS is a single and flexible system used to manage land within a municipal area. Land Use Management is a combination of all the tools and mechanisms used by a municipality to manage the way land is used and developed. These tools include inter alia: land use schemes; by-laws; licensing; rates and general property information. Municipalities are required to undertake land use planning in terms of the Municipal Systems Act No. 32 of 2000. A Land Use Management System is aimed at co-ordinating all land uses and their relationship to each other - ensuring certainty, order and compatibility of land uses.
11.2. WATER SERVICE DEVELOPMENT PLAN (Outdated need to be reviewed) This is a business plan which sets out the way in which the water services authority plans and delivers water services to individuals and businesses in its area of jurisdiction. It should be done as part of the IDP process and the summary of the housing planning undertaken becomes a chapter in the IDP. Therefore it is not a comprehensive, stand-alone plan resulting from a separate planning process. With the publication of the Water Services Act 108 of 1997, all water services authorities are required to prepare a Water Services Development Plan (WSDP). This is a business plan which sets out the way in which the water services authority plans and delivers water services to individuals and businesses in its area of jurisdiction
It must also describe the current and future consumer profile, the type of services that are provided, the infrastructure requirements, a water balance, organizational and financial arrangements to be used, an assessment of the viability of the approach, and an overview of environmental issues.
Following these analyses, important issues that may impact on the provision of effective and sustainable water and sanitation services need to be identified and strategies must be formulated to improve service provision.
11.3. INTEGRATED HUMAN SETTLEMENT CHAPTER PLAN (Council Resolution: A12/2012-01-27
The Housing Sector Plan/ Housing Chapter are a summary of the housing planning undertaken by a municipality and should be used together with the IDP. The Housing Chapter is a 5 year plan which is reviewed annually. It should be done as part of the IDP process and the summary of the housing planning undertaken becomes a chapter in the IDP. Therefore it is not a comprehensive, stand-alone plan resulting from a separate planning process. The Housing Sector Plan/ Housing Chapter, and its contents, in the context of sustainable human settlements
257 | P a g e F I N A L I D P 2 0 1 5 / 1 6
11.4. LOCAL ECONOMIC DEVELOPMENT AND TOURISM STRATEGY (Outdated need to be reviewed)
The LED and Tourism Strategy focus on aspects such as the branding and image of the Municipality (and the urban settlements), it’s economic (re)positioning in terms of the global economy, tourism and all aspects related to the urban space economy. The main focus of the LED should be on the following:
The main focus of the LED and Tourism is on the on the following aspect as envisaged in the SDF:
Promote and support sustainability of existing businesses.
Promote small and micro sized rural enterprises.
Tourism growth and promotion: conferencing, casino, motels game farms, natural sites ect.
Creation of job opportunities.
Industries to support SMME activities.
Improve skills development.
Increase the revenue potential of the Municipality.
Develop the business potential of the area.
Establish the municipality as one of preference for national and international visitors.
11.5. INFRASTRUCTURE INVESTMENT PLAN (To be developed for Council adoption) The Municipal Infrastructure Investment Plan sets out a basis whereby Municipalities can plan programme and budget for meeting the infrastructure service needs in their areas. The Infrastructure Investment Plan seeks to provide a strategic direction in ensuring provision of sound, safe, environmentally friendly and sustainable infrastructure services to all residents. It also outlines the infrastructure investment plan for the next five years and the resources required meeting the plan objectives and National or Provincial policy guidelines.
The plan covers the maintenance, upgrading, refurbishment and provision of new electricity, water, sanitation, housing, buildings and road infrastructure within the Municipality’s area of jurisdiction. This plan will assist the Municipality to:
Determine the extent of infrastructure to be provided,
Determine the capital expenditure required to provide this infrastructure,
Methods of financing the capital expenditure,
Determining the operational expenditure to operate and maintain the service delivery,
Methods of raising revenue to cover the operating expenditure, and
Develop monitoring and management systems.
258 | P a g e F I N A L I D P 2 0 1 5 / 1 6
11.6. PERFORMANCE MANAGEMENT PLAN (Need to be reviewed)
The Municipal System Act (2000) requires municipalities to develop a performance management system that is commensurate with its resources. The development and implementation of a performance management framework has the following benefits:
Inform executive decision making processes;
provide an early warning signal of problematic areas where the municipality is likely to under-perform; and
Create a culture of organizational performance measurement.
An organization’s strategic plan is its foundation, and it is the foundation for an effective performance measurement system. The City will take into consideration the need to continuously ensure the alignment of its performance management system with its IDP. This will be realized by always ensuring that whenever the IDP is reviewed, the performance targets and performance indicators of the revised programmes and projects also reviewed to cover new changes.
11.7. SOCIAL NEEDS ASSESSMENT PLAN (To be developed for Council adoption)
A separate needs assessments should be done for:
Education
Health
Sport, recreation and culture
It should include development of a plan and implementation to establish detailed status quo of all infrastructure, including mapping and establishing of current infrastructure.
Through the needs assessment, a clearer picture of the current situation, as well as existing gaps, can be obtained, which in turn will simplify the process of evaluation, planning and implementation of programmes and projects.
11.8. OPEN SPACE PLAN (To be developed for Council adoption)
The aim of an Open Space Plan is to establish a thorough understanding on the intrinsic value of Open Space and to then develop a visionary roadmap towards the creation of an exceptional Open Space network for the city and its people.
The objectives for such a framework are:
To create a detailed data and information base on all Open Spaces within the municipal area, including conservation areas and strategically important Open Space resources;
To establish the status of the open space resources as a vital and valuable physical and economic resource within the municipal area;
To develop an Open Space network based on a defined vision, goals, principles, typologies and categories on municipal and regional scale;
259 | P a g e F I N A L I D P 2 0 1 5 / 1 6
To develop Principles and Policy Statements as a basis for consistent and integrated decision making by the local authority regarding issues affecting Open Space resources;
To provide Principles and Policy Statements as a basis for informing all scales of land use and infrastructure planning and development;
To provide an Institutional and Management Framework to ensure the effective and collaborative planning, implementation and administration of the Open Space network;
To inform the acquisition and disposal of Open Space; and
To provide a Framework within which development activities within the city comply with the National Environmental Management Amendment Act, 2004 (Act 8 of 2004).
11.9. URBAN EDGE POLICY (To be developed for Council adoption)
The delineation of an urban edge in order to:
Control sprawl.
Direct development in appropriate areas and
Assist in countering the outward pressure for urban expansion.
This policy should also contain guidelines for the development inside and outside the urban edge.
11.10. ENCROACHMENT ON PROPERTY POLICY (In draft form) Lekwa Local Municipality hereby, in terms of Section 13(a) of the Local government: Municipal Systems Act, 2000 (Act No 32 of 2000), publishes the Encroachment on Property By-laws for the Municipality, as approved by its Council, as set out hereunder. The content of this policy entail the following components;
Council permission required
Rules for the construction of projections
Columns
Balconies and bay windows
Plinths, pilasters, corbels and cornices
Verandas around corners
Pavement openings
Maintenance, removal and tenancy of projections
Paving of footways or pavements under or in front of encroachment
Projections
Offences and penalties
Repeal of by-laws
260 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Short title
11.11. INVESTMENT AND INCENTIVES STRATEGY (In draft form)
The aim of the Investment promotion and incentive policy is to provide a framework for the uniform development of incentives in Municipality that will assist to:
Attract major national and international investors.
Retain and boost existing investment.
Support investment into projects identified in the IDP and the SDF
An investment can be defined as “the warehousing of capital or assets in the open market for a defined period with the intention of declaring a yield at the end of the defined period.” (Gildenhuys,1997).In the complex world of risk, change, and different tax regimes, investment managers tend to rely more on the “satisfying behaviour” than the systematic evaluation of investment outcomes, when it comes to a decision to invest. The open market system comprises mainly the Western hemisphere countries and Asia where the amount of capital inflows in these economic hubs determines the size and profitability of investments made. The rate of these capital flows is used as an indicator of confidence to invest. It is therefore not surprising that the dominant markets are found in Europe, United States and Asia as compared to the developing economies, of which South Africa is one. This phenomenon explains the importance of direct foreign investment for any developing economy.
An incentive can be defined as:
Stimulus
Motivating influence
Serving to incite to action
Something that arouses to effort or action
In economics, additional payment offered to workers to boost production
11.12. DISASTER MANAGEMENT PLAN (Outdated need to be reviewed)
The purpose of a Disaster Management Plan is to enhance the capacity of the municipality to prevent and to deal with disasters and to avoid developments, which are subject to high risk of disasters. Disaster Management Framework, Plan and Centre are interrelated. The scope of disaster management as required by the Act broadly entails three domains as outlined hereunder: -
Disaster Planning
Hazard identification
Risk and Vulnerability assessment
Prevention, mitigation, preparedness strategies
Contingency planning
The monitoring and evaluation of disaster planning Key Performance Indicators.
261 | P a g e F I N A L I D P 2 0 1 5 / 1 6
Disaster Preparedness and Response
Monitoring of threats
Activating contingency plans
Informing National & Provincial centre
Deploying response resources to the scene of incident
Managing the resources
Monitoring of disaster intervention activities
Declaring of a “State of Disaster”
Disaster Recovery
Planning for the recovery
Disaster recovery activities
Monitoring of disaster recovery activities
Documentation of disaster occurrences and actions taken
Post-mortem analysis to improve systems, plans and methodologies
Because the local municipality is not the responsible agency for disaster management, but form an integral part of disaster management within the district, a disaster management plan is produced. This plan addresses only the local municipal area of jurisdiction and will be aligned with the Disaster Management Plan of the Gert Sibande District and Mpumalanga Provincial Centre, once it is published.
11.13. INTEGRATED ENVIRONMENTAL MANAGEMENT PLAN (Shared service at GSDM)
An EMP is a document created by Gert Sibande District Municipality to provide a framework for dealing with the pollution risks associated with the local municipal activities. In many cases, it simply formalizes practices already undertaken on projects sites by municipalities.
Integrated Environmental Management (IEM) is designed to ensure that the environmental consequences of development proposals are understood and adequately considered in the planning process. The term environmental is used in its broad sense, encompassing biophysical and socio-economic components.
The purpose of the IEM is to resolve or mitigate any negative impacts and to enhance positive aspects of development proposals.
The definition of IEM according to the Department of Environmental Affairs and Tourism, (1998) is: A philosophy which prescribes a code of practice for ensuring that environmental considerations are fully integrated into all stages of the development process in order to achieve a desirable balance between conservation and development.
262 | P a g e F I N A L I D P 2 0 1 5 / 1 6
The vision for IEM, according to the Department of Environmental Affairs and Tourism, (1998), is to lay the foundation for environmentally sustainable development based on integrated and holistic environmental management practices and processes.
Gert Sibande District’s IEM include the following basic principles of IEM
The basic principles underpinning IEM are that there be:
informed decision-making;
accountability for information on which decisions are taken;
accountability for decisions taken;
a broad meaning given to the term environment (i.e. one that includes physical, biological, social, economic, cultural, historical and political components); GSDM Integrated Environmental Plan
an open, participatory approach in the planning of proposals;
consultation with interested and affected parties;
due consideration of alternative options;
an attempt to mitigate negative impacts and enhance positive aspects of proposals;
an attempt to ensure that the ‘social costs’ of development proposals (those borne by society, rather than the developers) be outweighed by the ‘social benefits’ (benefits to society as a result of the actions of the developers);
democratic regard for individual rights and obligations;
compliance with these principles during all stages of the planning, implementation and decommissioning of proposals (i.e. from “cradle to grave”), and
The opportunity for public and specialist input in the decision-making process. (Department of Environmental Affairs, 1992).
11.14. PAVEMENT MANAGEMENT SYSTEM (Outdated need to be reviewed)
The Pavement Management System is a subset of the Road Infrastructure Management System. The use of a Pavement Management System is generally accepted as being essential for determining the maintenance needs of road networks in a scientific manner. Implemented in a sequence of phases, it first identifies maintenance projects from a visual assessment of the pavement condition within the road network. It then determines the most economical alternative maintenance treatment. A Pavement Management System enables road authorities to establish their budget requirements objectively, as well as maintaining control over the pavement performance.
The system deals with the first phase: visual assessment of the pavements in the network. Maintenance projects are given in order of priority that places special emphasis on the advantages of preventative maintenance. Possible project types range from routine maintenance (e.g. patching), special maintenance including various forms of surface treatment, through to heavy rehabilitation (e.g. heavy overlays and reconstruction).The system, inter alia, provides answers to the following questions:
263 | P a g e F I N A L I D P 2 0 1 5 / 1 6
• What is the present condition of the pavements from a surfacing, structural and functional point of view?
• Which sections should be scheduled as rehabilitation projects in a 2 to 5 year program?
• Which sections should be resurfaced this year and the next in order to forestall incipient structural deterioration?
• What type of maintenance will be most cost effective in each case?
• What funds are required to carry out the suggested maintenance program, so as to bring the network to an acceptable level of service and to alleviate unnecessarily expensive maintenance in the future
11.15. STORM-WATER MANAGEMENT SYSTEM (Outdated need to be reviewed)
The objectives of this study are:
• Define existing system and status quo.
• To identify, analyse and quantify identified storm water problems in the areas of Municipality
• To give preliminary remedial measures and cost calculations for identified problems.
• To give guidelines regarding storm water drainage through developing areas within the identified areas.
The Lekwa Municipality appointed Africon Engineering to compile a hydrological model for the Lekwa area with specific mention of Morgenzon, Sakhile Ext:4 and Standerton Ext: 6 & 7 to provide storm water infrastructure where flooding may occur.
The scope of works is based on the proposal document which must be read in conjunction with this report. The scope included the following:
• Data collection by means of on-site inspection of the existing system.
• To compile a master plan for the Morgenzon, Sakhile Ext:4 and Standerton Ext: 6 & 7 area.
• To identify problem areas.
• To provide preliminary remedial measures
• To quantify the solutions by means of a basic cost estimate.
All cadastral information was received from the Municipality in AutoCAD format in dwg format. No as-built information was provided by LLM. As-built information was obtained by on-site verification of Morgenzon, Sakhile Ext:4 and Standerton Ext: 6 & 7 existing system. No information is available for Sakhile as the area is considered as being newly developed with no infrastructure in place.
Development of new infrastructure should be according to the standards set out in this report. It is suggested that the proposed storm water layouts, as proposed in this study, be followed. All drainage structures, including streets, should be designed to accommodate the run-off for 2-year and 20-year storm events as used in these models.
264 | P a g e F I N A L I D P 2 0 1 5 / 1 6
11.16. COMPREHENSIVE INFRASTRUCTURE INVESTMENT PLAN (To be developed for Council adoption)
This plan serves to clarify the approach to be followed in assessing the infrastructure investment needs for this municipality. The following applies:
• The sheets for demography and housing have been completed
• The sheets for water have been completed
• The sheets for sanitation will be finalized in exactly the same basis as for water
• Summative roads requirements will be included as it is included in the MTEF
• Summative institutional capacity details will be collected per municipality - details will be submitted at the workshop
• Summary budget data have been proposed - this will be summarized once discussed with NT
265 | P a g e F I N A L I D P 2 0 1 5 / 1 6
266 | P a g e F I N A L I D P 2 0 1 5 / 1 6
267 | P a g e F I N A L I D P 2 0 1 5 / 1 6
268 | P a g e F I N A L I D P 2 0 1 5 / 1 6
269 | P a g e F I N A L I D P 2 0 1 5 / 1 6
270 | P a g e F I N A L I D P 2 0 1 5 / 1 6