Ephraim Mogale Local Municipality 2017/2018 IDP/Budget Presentation Overview
An overview of the draft 2017/2018 Integrated Development Plan (IDP) and budget presentation for stakeholders in Ephraim Mogale Local Municipality. The presentation covers the importance of the IDP, legislative frameworks, the municipality's vision and mission, and key priorities such as spatial rationale for development.
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Draft 2017/2018 IDP/Budget Presentation to Stakeholders EPHRAIM EPHRAIM MOGALE MOGALE LOCAL LOCAL MUNICIPALITY MUNICIPALITY 2017/18 Date: 07 APRIL 2017 Venue : Kloppor Community Hall Time: 10:00am Presented by: Her Worship Mayor C.R KUPA 1
EPMLM Draft 2017/2018 IDP/Budget 2 Introduction and Background An Integrated Development Plan is a super plan for an area that gives an overall framework for development. It aims to co-ordinate the work of local and other spheres of government in a coherent plan to improve the quality of life for all the people living in an area. It should take into account the existing conditions and problems and resources available for development. The plan should look at economic and social development for the area as a whole. It must set a framework for how land should be used, what infrastructure and services are needed and how the environment should be protected. Municipal Systems Act requires Municipalities to develop IDPs to respond to changing circumstances. The IDP has a lifespan of 5 years that is linked directly to the term of office for local councillors. After every local government elections, the new council has to decide on the future of the IDP. The council can adopt the existing IDP or develop a new IDP that takes into consideration existing plans.
EPMLM Draft 2017/2018 IDP/Budget 3 Legislative Framework Constitution of the Republic of South Africa Chapter 5 section 25 of the Municipal Systems Act 32, of 2000 Chapter 4 of the MFMA National Development Framework Limpopo Development Framework District Development Framework
EPMLM Draft 2017/2018 IDP/Budget EPHRAIM MOGALE LOCAL MUNICIPALITY VISION 4 OLD VISION A viable and sustainable municipality that provide quality service and enhance socio-economic growth NEW VISION Agricultural Hub of choice
EPMLM Draft 2017/2018 IDP/Budget EPHRAIM MOGALE LOCAL MUNICIPALITY MISSION 5 OLD MISSION To involve all sectors of the community in the economic, environment and social development whilst improving service delivery thereby becoming a prominent agricultural, business and mega industrial growth point in the Sekhukhune District for the benefit of the residents and province NEW MISSION To involve the community in the economic, environment and social development for sustainable service delivery
EPMLM Draft 2017/2018 IDP/Budget Municipal Priorities 6 Spatial Rationale Acquire strategic land parcels for development o Basic Service Delivery and Infrastructure To ensure provision of efficient infrastructure ( Roads and storm-water) and energy supply that will contribute to the improvement of quality of life for all in Ephraim Mogale o To contribute to the safety of communities through the proactive identification, prevention, mitigation, and management of environment, fire and disaster risks. o Local Economic Development To facilitate sustainable economic empowerment for all communities within Ephraim Mogale and enabling a viable and conducive economic environment through the development of related initiatives including job creation and skills development o
EPMLM Draft 2017/2018 IDP/Budget Municipal Priorities ------- cont------- 7 Financial Viability o To ensure the financial viability and sustainability of the municipality and to adhere to statutory requirements Good Governance and Public Participation o To promote proper governance and public Participation o To improve public relations thus pledging that our customers are serviced with dignity and care Municipal Transformation and organizational development o Institutional transformation to provide an effective and efficient workforce by aligning institutional arrangements to the overall municipal strategy in order to deliver quality services
EPMLM Draft 2017/2018 IDP/Budget Powers and functions 8 Powers and functions Municipal Roads Air Pollution Building regulations Storm water Trading regulations Municipal parks and recreation Beaches and amusement facilities Billboards and the display of advertisements in public places Child care facilities Electricity reticulation Local tourism Municipal airport Cemeteries, funeral parlours and crematoria Cleansing Control of public nuisance Control of undertakings that sell liquor to the public Municipal planning Municipal Public Transport Pontoons & Ferries Fencing and fences Licensing of dogs Facilities for the accommodation, care and burial of animals Licensing and control of undertakings that sell food to the public Local amenities
EPMLM Draft 2017/2018 IDP/Budget Powers and functions 9 Powers and functions Pounds Public places Noise pollution Municipal roads Municipal Abattoirs Markets Local sports facilities Registration authority Traffic and parking Street lighting Street trading Refuse removal refuse dumps and solid waste disposal
EPMLM Draft 2017/2018 IDP/Budget Budget Notes 10 DRAFT BUDGET 2017/18 As prescribed by section 23 of the Municipal Finance Management Act and our own believe in the importance of soliciting people s needs and views, once more we have come before you to solicit your comments, aspirations and needs in terms of the draft budget. The Council has developed a budget policy guideline to be used as guideline when compiling the budget. The guideline states that Council departments should develop operational/business plans for their departments which clearly spell out the projects to be implemented, the objectives, the activities, the KPI s, the budget amounts, the source of funding and the time frames for the implementation of such projects. These plans and proposed revenue were used as a basis for the drafting of the budget. OPERATIONAL BUDGET 2017/2018 FINANCIAL YEAR Revenue National Treasury guides that when municipalities revise their rates, tariffs and other charges for their 2017/18 budgets and MTREF, they need to take into account the labour (i.e. the wage agreements with unions) and other input costs of services provided by the municipality or entity, the need to ensure financial sustainability, local economic conditions and the affordability of services, taking into consideration the municipality s indigent policy.
EPMLM Draft 2017/2018 IDP/Budget TARIFF INCREASE 11 The following are the proposed tariff increases after taking into consideration the guidelines from National Treasury: Assessment Rates: 0% (New valuation roll will be implemented in 2017/2018 financial year) Electricity: 1.88% Cleansing: 6.4% Other income: 6.4%
EPMLM Draft 2017/2018 IDP/Budget Trends in major sources of own revenue 12 Revenue from own sources, which is total revenue excluding transfers represents 40% of total revenue in 2017/2018. This has reduced in comparison with the previous financial year and indicates that the municipality is still largely dependent on government grants. Total transfers from National Treasury represent a total of 60% of the municipal revenue in 2017/18. Electricity and property rates remain the major source of own revenue for the municipality. The only municipal service charges the municipality provide to the community is refuse removal. Water and sanitation has now been taken fully over by the District Municipality. Total revenue of R 286 438 545 has been budgeted for in the 2017/18 financial year which is an average increase of 7% from 2016/2017 so as to enable the municipality to fund its operating and capital expenditure:
EPMLM Draft 2017/2018 IDP/Budget GRANTS AND SUBSIDIES 13 ITEM DESCRITPION FORECASTT 2017/2018 FORECAST 2018/2019 FORECAST 2019/2020 EQUITABLE SHARE R123 766 000 R129 255 000 R132 946 000 GRANT: MIG R44 810 000 R 35 775 000 R37 670 000 GRANT: FINANCIAL MANAGEMENT R2 145 000 R2 400 000 R2 660 000 EPWP INCENTIVE GRANT R1 447 000 R- R- GRANTS & SUBSIDIES R172 168 000 R167 430 000 R173 276 000
EPMLM Draft 2017/2018 IDP/Budget OPERATING REVENUE BUDGET 14 Description 2017/18 Medium Term Revenue & Expenditure Framework Budget Year +1 2018/19 Budget Year +2 2019/20 Budget Year 2017/18 Revenue By Source Property rates Service charges - electricity revenue Service charges - refuse revenue Rental of facilities and equipment Interest earned - external investments Interest earned - outstanding debtors Fines, penalties and forfeits Licenses and permits Agency services Other revenue Grants & Subsidies 35,127,971 48,685,521 4,968,405 151,965 6,933,293 5,036,639 262,539 3,181,453 7,635,500 2,287,258 172,168,000 37,200,522 55,564,376 5,261,541 160,454 7,342,358 5,333,801 278,029 3,369,158 8,085,993 2,416,576 167,430,000 39,358,152 60,009,526 5,566,710 169,884 7,277,134 5,643,161 294,155 3,564,570 8,554,983 3,047,817 173,276,000 TOTAL REVENUE 286,438,544 292,442,808 306,762,092 Other revenue consists of all other revenue sources of the municipality that are not main sources such as hiring of facilities and sale of tender documents
EPMLM Draft 2017/2018 IDP/Budget OPERATING EXPENDITURE BUDGET 15 Description 2017/18 Medium Term Revenue & Expenditure Framework Budget Year +1 2018/19 Budget Year +2 2019/20 Budget Year 2017/18 Expenditure By Type Employee related costs 82,321,696 86,677,831 92,623,024 Remuneration of councillors 12,596,199 13,603,896 14,692,208 Debt impairment 7,513,782 8,900,000 9,692,611 Depreciation & asset impairment 45,000,000 46,000,000 48,500,000 Finance charges 422,258 448,015 475,344 Bulk purchases 31,703,467 34,239,744 36,978,924 Other materials 10,853,969 11,744,955 13,281,636 Contracted services 13,509,110 11,848,542 12,680,534 Transfers and subsidies 2,910,422 3,118,640 3,342,008 Other expenditure 63,322,643 65,206,693 67,641,722 Total Expenditure 270,153,545 281,788,316 299,908,011
EPMLM Draft 2017/2018 IDP/Budget Employee related costs & General Expenditure 16 Employee related costs An increase of 7.4% has been provided in the 2017/18 financial year as guided by National Treasury and Salga. The municipality has followed a stringent review process on the organizational structure of the institution and believes that the reviewed structure will enhance service delivery and efficiency of operations. The draft budget indicates that the employee cost is 26% of the operating budget which is still within the National guidelines. General Expenditure The current CPIX increase outlined within circular 86 to be utilized by municipalities in the estimation of their expenditure for 2017/18 is approximately 6.4%. Operating expenditure is budgeted as follows: Mainly the budget principle used was zero based budgeting where inputs were received from Departments and a trend analysis for the previous year s outcomes and mid-year performance for the current were considered. Where incremental budgeting was made it has been kept within 6.4%. Overall increase of the total operating expenditure is 8% as compared to 2015/16. This is mainly due to the effect of zero based budgeting. However the municipality will implement cost containment measures wherever possible implemented guided by MFMA Circular 58, 66, 67, 70, 74 ,75 and 82.
EPMLM Draft 2017/2018 IDP/Budget CAPITAL BUDGET 17 DRAFT BUDGET 2017/2018 FORECAST 2018/2019 FORECAST 2019/2020 MUNICIPAL INFRASTRUCTURE GRANT (MIG) FUNDED CAPITAL PROJECTS DEP 650 UPGRADING OF LETEBEJANE/DITHOLONG INTERNAL STREETS 10,120,000 650 LEEUWFONTEIN SPORTS COMPLEX 10,832,000 650 DICHOEUNG INTERNAL ROAD 7,500,000 - 650 MAMPHOGO SPORTS COMPLEX 6,500,000 6,000,000 7,500,000 650 NGWALEMONG INTERNAL STREETS 8,158,000 9,142,000 650 MMAKGATLE A-B BUS ROUTE 18,844,250 650 MALEBITSA INTERNAL STREETS 8,000,000 650 VAALBANK INTERNAL STREETS 8,286,500 650 RATHOKE INTERNAL STREET 12,000,000 TOTAL 43,110,000 33,986,250 35,786,500 Total capital 2017/2018: R61 285 000.00 Excluded in the MIG funding is the cost for PMU Establishment amounting to R 1 700 000.00, which has been disclosed with Operational General Expenditure. Hence the total grant funding in relation to MIG is R 43 110 000.00
EPMLM Draft 2017/2018 IDP/Budget Capital Budget----CONT---- 18 DRAFT BUDGET 2017/2018 FORECAST 2018/2019 FORECAST 2019/2020 INTERNALLY FUNDED CAPITAL PROJECT DEP LICENCING AND TRAFFIC 225 SPEED CAMERA 225 VEHICLES 300,000.00 600,000.00 900,000.00 - - ELECTRICITY 260 INDUSTRIAL SUBSTATION SECOND SUPPLY PHASE 3 (CABLE, EARTH AND INSTALLATION) 260 REPLACE OLD 35MM PILC 11KV CABLE FROM ERF181 -830 260 REPLACE MINISUB ERF 338 MOPANIE STREET 260 CABLE REPLACEMENT ERF 749-754 WISTARIA & DAHLIA STREETS 260 RETROFIT MAST LIGHT FITTINGS - RATHOKE 260 TRANSFORMER REPLACEMENT 500KVA - PORTION 515 260 REPLACE RMU WITH SF6 CIRCUIT BREAKER -CNR AGAAT/EWOUD MALAN 260 INDUSTRIAL SUBSTATION SECOND SUPPLY PHASE 2 (OTK PANEL) 260 REPLACE 11KV OVERHEAD LINE WITH CABLE -IND STREET 260 MINISUBSTATION STAND 456 IRIS STREET 260 UPGRADE MUNICIPAL MAIN SUPPLY (MAIN SUBSTATION) 260 GENERATOR FOR MUNICPAL EVENTS 50KVA 3,100,000.00 670,000.00 600,000.00 450,000.00 623,000.00 500,000.00 500,000.00 600,000.00 - 1,263,000.00 600,000.00 - 5,000,000.00 400,000.00 - 390,000.00 260 GENERATOR FOR OFFICE ADMIN 220KVA - 1,100,000.00 2,753,000.00 - 2,200,000.00 10,843,000.00 SOLID WASTE 360 Tipper truck 360 Refuse Container 360 Truck 850,000.00 540,000.00 1,568,800.00 - 1,390,000.00 1,568,800.00 -
EPMLM Draft 2017/2018 IDP/Budget Capital Budget----CONT---- 19 DRAFT BUDGET 2017/2018 INTERNALLY FUNDED CAPITAL PROJECT FORECAST 2018/2019 FORECAST 2019/2020 DEP COMMUNITY SERVICES MANAGEMENT 375DIGITAL CAMERA 10,000.00 10,000.00 - - PARKS AND CEMETERIES 425TLB 425BUSH CARTERS 425LOAN MOWERS 425 LANDSCAPING& GREENING PROJECT 1,300,000.00 160,000.00 150,000.00 1,335,422.00 150,000.00 1,909,110.00 1,000,000.00 425EXTENSIONS TO CEMETERY - 300,000.00 1,785,422.00 - 2,460,000.00 2,059,110.00 ADMINMISTRATION 500FILE STORAGE CENTRE 75,000.00 75,000.00 - - ICT 501Server 501PURCHASE OF PRINTERS 501PURCHASE OF ICT COMPUTERS 100,000.00 50,000.00 65,000.00 215,000.00 53,000.00 68,900.00 121,900.00 56,180.00 73,034.00 129,214.00 COUNCIL SUPPORT 505VEHICLE 950,000.00 - - 950,000.00 - - HOUSING AND BUILDING CONTROL 625AIR CONDITIONING 200,000.00 200,000.00 - -
EPMLM Draft 2017/2018 IDP/Budget Capital Budget----CONT---- 20 DRAFT BUDGET 2017/2018 INTERNALLY FUNDED CAPITAL PROJECT FORECAST 2018/2019 FORECAST 2019/2020 DEP FLEET MANAGEMENT 640 VEHICLES 600,000.00 600,000.00 - - ROADS AND STORMWATER 650 BOMAG ROLLER 650 HIGH MAST LIGHTS (Internal Funding) 650 PURCHASING OF CONSTRUCTION BOMAG ROLLER 650 REHABILITATION OF SECOND STREET IN MARBLEHLL 650 REHABILITATION OF TABOMBTIE 650 RESEALING OF STREETS IN MARBLEHALL 650 REPLACEMENT OF 20 STORMWATER CATCHMENT CONCRETE COVER 650 IMPLEMENTATION OF RMP :MAINTENANCE OF 4TH AVENUE 650 IMPLEMENTATION OF RMP :MAINTENANCE OF AKASIA STREETS 650 IMPLEMENTATION OF RMP :MAINTENANCE OF DELPHINIUM STREETS 650 IMPLEMENTATION OF RMP :MAINTENANCE OF DIAMOND STREETS 650 IMPLEMENTATION OF RMP :MAINTENANCE OF 1ST STREETS 650 IMPLEMENTATION OF RMP :MAINTENANCE OF EWOUD MALAN 650 IMPLEMENTATION OF RMP :MAINTENANCE OF FICUS STREET 650 DUMPER X 2 650 LIGHT DELIVERY VEHICLE 650 MOBILE TOILETS 650 STORMWATER EXT: 6 650 SAW CUTTER 650 BACKHOE LOADER 650 MOTOR GRADER 200,000.00 - - 3,000,000.00 1,800,000.00 3,000,000.00 1,685,400.00 1,000,000.00 1,424,214.00 1,000,000.00 500,000.00 - 115,068.00 - 1,000,000.00 158,247.00 1,000,000.00 2,000,000.00 1,027,589.00 - 1,000,000.00 1,452,611.00 400,000.00 800,000.00 400,000.00 - 800,000.00 200,000.00 5,000,000.00 125,000.00 5,000,000.00 6,000,000.00 - - 1,000,000.00 4,000,000.00 23,451,803.00 7,425,000.00 14,211,326.00 MUNICIPAL MANAGER 750 Survelliance Cameras for the workshop 100,000.00 100,000.00 - - - - PLANNING AND DEVELOPMENT 640 Office space 1,500,000.00 1,500,000.00 - - - - FINANCE 775 CASH COUNTING MACHINES 150,000.00 150,000.00 - - TOTAL INTERNALLY FUNDED CAPITAL EXPENDITURE 18,175,000.00 29,680,925.00 27,242,650.00
EPMLM Draft 2017/2018 IDP/Budget Budget related Policies 21 Budget Policy Tariffs and Sundry Charge Policy Property Rates Policy Virement Policy Credit Control and Debt Collection Policy Assets Management Policy Indigent Support Policy Investment Policy Cellphone Policy Overtime and Standby Policy Acting Allowance Policy Transport Allowance Policy Travel and Subsistence Policy Supply Chain Management Policy Funding and Reserve Policy
EPMLM Draft 2017/2018 IDP/Budget Conclusion 22 IDP is a building block towards Integrated Intergovernmental Planning It is important that all stakeholders plays a role in developing this tool in order to improve service delivery in our Municipality. Communities and other stakeholders are invited to submit inputs before the final adoption of 2017 /2018 IDP/Budget on or before 08 May 2017.
