Draft Integrated Development Plan and Budget Overview for 2021/22-2025/26
The overview presents the legislative background, roadmap for the IDP/budget process, key powers and functions, vision, mission statements, core values, and strategic priorities outlined by Executive Mayor, Cllr. Keamotseng Stanley Ramaila for the Sekhukhune District Municipality. It highlights the consultation and adoption process, organizational structure, demographics, and projects/programs for 2021-2022.
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
DRAFT INTEGRATED DEVELOPMENT PLAN AND BUDGET FOR 2021/22 2025/26 APRIL 2021 PRESENTED BY EXECUTIVE MAYOR: CLLR KEAMOTSENG STANLEY RAMAILA 1
CONTENTS 1. Legislative background 2. IDP/Budget process (roadmap) 3. Powers and functions 4. Vision and Mission statements 5. Core Values 6. Motto and Slogan 7. Mayoral Strategic Priorities 8. Demographics (population, wards, households) 9. Projects and programmes for 2021-2022 10.Organisational structure 11.Draft budget 2021-2022
1. LEGISLATIVE BACKGROUND Local Government: Municipal Systems Act, 2000 (Act 32 of 2000): Section 34 requires that each municipality must annually review its Integrated Development Plan (IDP) Section 29 (b) requires that local community be consulted on drafting of the IDP Local Government: Municipal Finance Management Act (MFMA) number 56 of 2003: Section 23 (a) requires that the Council must consult the local community on the tabled draft budget
2. IDP/BUDGET PROCESS(ROADMAP) IDP/Budget Framework and Process Plan for 2020-2021 was adopted by Council in August 2020. Analysis Phase was done during the second quarter of 2020- 2021 financial year. Strategic Planning Session was held from 02-03 March 2021. Strategy Phase and Project Phase were concluded in March 2020. The Draft IDP/Budget for 2021/2022 was noted in a Council sitting dated 30 March 2021. The Draft IDP and Budget are currently undergoing public consultations. Final IDP and Budget for 2021 2022 will be adopted by Council at the end of May 2021.
3. POWERS AND FUNCTIONS Water And Sanitation Fire-fighting Services Municipal Health Services Local Tourism Municipal Planning Municipal Abattoirs Regional Landfill Sites Municipal Public Transport Municipal Airports Except for Ephraim Mogale and Elias Motsoaledi
4. VISION AND MISSION STATEMENTS VISION Sekhukhune District Municipality - A Leader in Integrated Economic Development and Sustainable Service Delivery. MISSION STATEMENTS To improve the quality of life for all communities through: Provision of a democratic and accountable government; Promotion of inclusive and egalitarian economic transformation; Promotion of a safe and healthy environment; Fostering of community involvement and stakeholder engagement; Strengthening institutional capacity; Promotion of social cohesion
5. COREVALUES OF THE MUNICIPALITY H-onesty E-xcellence A-ccessibility R-espect T-ransparency Abbreviated as HEART .
6. MOTTO AND SLOGAN Motto Re a aga/Siyakha meaning we are building . Slogan Destination for economic growth and development.
7. MAYORAL STRATEGIC PRIORITIES Provision of water and sanitation services in a sustainable manner Local economic development, growth and job creation through agrarian reform, repositioning of SDA Good governance and sound financial management Sustainable land use transformation Community development, social cohesion and nation building Public participation, stakeholder engagements and partnerships mining, tourism and management and spatial
8. DEMOGRAPHICS CONT.: WARDS AND VILLAGES (Source: The Demarcation Board, 2016 and Ward Committee study 2015/16) LOCAL MUNICIPALITY NUMBER OF WARDS NUMBER OF VILLAGES Elias Motsoaledi 31 159 Ephraim Mogale 16 78 Makhuduthamaga 31 192 Fetakgomo Tubatse 39 335 Total 117 764
DEMOGRAPHICS CONT.: HOUSEHOLDS (Source: Community Survey 2016 and Census 2011) LOCAL MUNICIPALITY HOUSEHOLDS IN 2011 HOUSEHOLDS IN 2016 PERCENTAGE (%) CHANGE Elias Motsoaledi 60 251 66 330 10% Ephraim Mogale 32 284 33 936 5% Makhuduthamag a 65 217 64 769 - 0% (reduced by 448) Fetakgomo/ Tubatse 106 050 125 454 18% Total 263 802 290 489 10%
DEMOGRAPHICS CONT.: HOUSEHOLDS Source: IHS Markit Regional eXplorer version 1750 Sekhukhune as % Sekhukhune as % Sekhukhune Limpopo National Total of province of national 2008 232,000 1,330,000 13,400,000 17.5% 1.74% 2009 242,000 1,360,000 13,700,000 17.8% 1.77% 2010 247,000 1,380,000 13,900,000 17.9% 1.78% 2011 252,000 1,390,000 14,200,000 18.1% 1.78% 2012 257,000 1,410,000 14,500,000 18.2% 1.78% 2013 261,000 1,430,000 14,700,000 18.2% 1.78% 2014 267,000 1,460,000 15,000,000 18.3% 1.78% 2015 277,000 1,510,000 15,400,000 18.4% 1.80% 2016 285,000 1,550,000 15,700,000 18.4% 1.81% 2017 291,000 1,580,000 16,000,000 18.5% 1.82% 297,000 2018 1,600,000 16,300,000 18.5% 1.82% Average Annual growth 2.49% 2008-2018 1.90% 2.00%
DEMOGRAPHICS: POPULATION FIGURES (Source: Community Survey 2016 and Census 2011) MUNICIPALITY POPULATION 2011 429 471 YOUTH POPULATION 2011 160 413 2016 490 381 2016 223 214 Fetakgomo Tubatse Makhudutham aga Ephraim Mogale Elias Motsoaledi Sekhukhune 274 358 283 956 88 663 107 577 123 648 127 168 42 964 51 829 249 363 268 256 86 165 109 022 1 076 840 1 169 762 378 205 491 642
DEMOGRAPHICS: POPULATION FIGURES (Source:IHS Markit Regional eXplorer version 1750) 2018 Average Annual growth MUNICIPALITY Ephraim Mogale 130,000 0.20% Elias Motsoaledi 275,000 1.40% Makhuduthamaga 294,000 0.94% Fetakgomo Tubatse 498,000 1.93% 1.36% Sekhukhune 1,196,342
9. PROJECTS AND PROGRAMMES FOR 2021-2022
WATER SERVICES O & M EXPENDITURE Project Budget for 2021-2022 O & M Strategy R1,500,000.00 Monitoring of both groundwater (i.e. boreholes) and surface water resource (dams) availability R 500,000.00 Functional Infrastructure Delivery Management System (IDMS) R 500,000.00 Procurement and installation of Telemetry System for bulk strategic water and sanitation infrastructure assets (e.g. start with Marble Hall, Groblersdal, Burgersfort, Steelpoort) R1,500,000.00 Customer care, fault reporting and query management system R1,000,000.00
WATER SERVICES O & M EXPENDITURE Project Budget for 2021-2022 Knowledge of the existing infrastructure components and enhanced maintenance Borehole drilling rig and appropriate components Effective and structured water quality management R1,500,000.00 R4,000,000.00 R500,000.00 Education and awareness on matters related to water use R1,000,000.00
PLANNING WATER SERVICE DEVELOPMENT Project Ground Water Resource Management & Development Budget for 2021-2022 R10, 307,807. 00 Comprehensive WC/WDM strategy for SDM R2,000,000.00 SDM Infrastructure Asset Management Strategy and Policy R1,500,000.00 Updated WSDP R500,000.00 Update Water and Sanitation Master Plan R500,000.00
RRAMS Project Budget for 2021-2022 Development of Rural Roads Asset Management System R2, 437, 000. 00
WATER SERVICES RBIG FUND Project Mooihoek bulk water supply phase 4F1 Budget for 2021-2022 R94 645 000. 00 Construction of Mooihoek bulk water supply phase G1.1 Construction of Mooihoek bulk water supply phase G1.2 Construction of Mooihoek bulk water supply phase G2 Construction of Mooihoek Reservoirs phase 4H1 Construction of Mooihoek Reservoirs phase 4H2 Nebo BWS Commission Jane Furse Pipeline NEBO BWS Jane Furse to Lobethal bulk water supply Nebo BWS Makgeru to Schoonoord BWS R50, 000, 000. 00
WATER SERVICES RBIG FUND Project Budget for 2021-2022 Moutse BWS Project 13 & 14 R80, 000, 000. 00 Moutse BWS Project (7 to 12) Moutse BWS Construction bulk water Pipeline Project 2 4
WATER SERVICES WSIG FUND Project Budget for 2021-2022 Maebe Drilling and Equipping of Borehole R13, 000, 000. 00 Tukakgomo RDP Section Borehole R9, 000, 000. 00 Nkosini Water Supply & Package Plant R8, 000, 000. 00 Laersdrift Water Supply Intervention R9, 000, 000. 00 Phokwane/Brooklyn Water Supply R4, 000, 000. 00 Legolaneng VDIP R7, 000, 000. 00
WATER SERVICES MIG FUND Project Ephraim Mogale VIP Backlog Programme (Phase2,3 ) Makhuduthamaga VIP Backlog Programme Budget for 2021-2022 R5, 000, 000. 00 R5, 000, 000. 00 Upgrading of De Hoop Water Treatment Works De Hoop/Nebo Plateau/Schoonoord Water Scheme Villages:Ga Mogashoa (Senkapudi) and Ga- Mogashoa (Manamane) NSD07 Regional Water Scheme Construction of Concrete Reservoirs De Hoop/Nebo Plateau/Schoonoord Water Scheme Villages: Makgeru, Ga Ratau & Matekane R60, 505, 976. 00 R4, 762, 404. 00 R28, 686, 829. 00 R42, 223 394. 00
WATER SERVICES MIG FUND Project Budget for 2021-2022 R5, 000, 000. 00 Elias Motsoaledi VIP Backlog Programme (Phase 2,3) R8, 000, 000. 00 Carbonitites to Zaaiplaas PH4(Dindela Reservoir) R7, 000, 000. 00 Tubatse VIP Backlog Programme (Phase 2,3) Motlailana, Makgemeng Water Supply R29, 409, 971. 00 Malekana Regional Water Scheme R135, 000, 000. 00 Lebalelo South connector pipes and reticulations R32, 748, 439. 30
WATER SERVICES MIG FUND Project Budget for 2021-2022 Lebalelo South: Phase 3 (Ga- Maroga and Motlolo Bulk and Reticulation Infrastructure R63, 000, 000. 00 Mampuru Bulk Water Scheme R57, 222, 987. 00
MUNICIPAL HEALTH SERVICES Project Environmental Pollution Prevention Budget for 2021-2022 R208,200.00 Water quality monitoring R89,507.26 Food Safety control R57,932.69 Waste Management R208,200.00 Health Surveillance of premises R20,820.00 Surveillance and prevention of communicable diseases Communicable diseases outbreak control Vector Control R2,528,423.48 R 43,661.62
EMERGENCY SERVICES Project Budget for 2021-2022 Fire and Rescue Operations R223 671,00 Emergency Management Services Training Academy Fire Prevention and Safety
DISASTER MANAGEMENT SERVICES Project Budget for 2021-2022 Disaster risk assessment R291 480, 00 Disaster risk reduction Response and recovery Disaster Management plan and framework review Special operations on high density days
SPATIAL RATIONALE Project Budget for 2021-2022 Joint District Municipal Planning Tribunal sittings R500,000 Facilitate Land Acquisition for District Municipal Offices R60,000 Integrate Municipal Geographic Information System (GIS)- (Finance and Asset Management System) R 1 000 000 Spatial referencing of IDP and District Development Plan(DDP) Capital Projects R50,000
LOCAL ECONOMIC DEVELOPMENT (LED) Project Budget for 2021-2022 Facilitate development of SMMEs and Cooperatives development strategy R400.000.00 Facilitate Enterprise and Supplier Development Programme R250 000 Support to SMMEs and Co-operatives R2,000,000.00 R1 500 000 Facilitate development of Industrial Development Master Plan for the Special Economic Zone (SEZ) (PED) Facilitate Small Scale Mining Seminars and Workshops R100 000
LOCAL ECONOMIC DEVELOPMENT (LED) Project Budget for 2021-2022 R90 000 Facilitate Economic Development Forums (Mining, Tourism, LED & Agric.) R500 000 Facilitate review of SDM Tourism Strategy EXTERNAL FUNDING PROJECTS Facilitate replacement of Malekana Steel Bridge (SDA) R72 000 000 (Mining Companies) Facilitate farmers support through Farmers Production Support Unit (Agri Park) at Vleeschboom (PED) Implementation of EPWP R7 454 980 (DRDLR /LDARD) R8 180 000 (DPW)
SEKHUKHUNE DEVELOPMENT AGENCY(SDA) Project Budget for 2021-2022 Dry Sanitation Top Structure Supply External Funding Facilitate replacement of Malekana Steel Bridge (SDA) Fundraising
SEKHUKHUNE DEVELOPMENT AGENCY(SDA) Project Budget for 2021-2022 Land Development of ERF 488 R 105 000 Agri-Sita Funding Application R 70 000 Tourism & Marketing R 235 000 SMME & Cooperatives Fund R 500 000 Youth Business Development R 30 000 Agang Cotton Initiative R100 000 SDA website R 121 000
SPECIAL PROGRAMMES AND STAKEHOLDER RELATIONS Project Budget for 2021-2022 Executive Support and Traditional Leadership Affairs R100 000,00 Special Mayoral Strategic Events R300 000,00 Strengthening of Moral Regeneration Movement Committee R50 000,00 Call Centre Revamping & Maintenance R600 000,00 Batho Pele R100 000,00 SODA R450 000,00 Aged care R100 000,00
SPECIAL PROGRAMMES AND STAKEHOLDER RELATIONS Project Children s Care Budget for 2021-2022 R100 000,00 Woman Development Initiative R300 000,00 People with disability R100 000,00 Cultural Heritage Celebrations and Language Promotions Coordination of health calendar days activities Coordination of District AIDS Council activities Youth Opportunities Expo R350 000,00 R150 000,00 R100 000,00 R900 000 00 R100 000 00 Facilitation of Mayor s Forum Facilitation of Mayoral Sports activities R500 000,00
BURSARIES Project Budget for 2021-2022 Internal Bursaries R670 000.00 External Bursaries R664 000.00
10. ORGANISATIONAL STRUCTURE AND INSTITUTIONAL CAPACITY The SDM comprises of five departments: Planning & Economic Infrastructure & Water Services; Budget & Treasury Office; Corporate Services and Community Services. The departments are headed by Directors. There are 817 employees on the municipal payroll (as at 31 March 2021). Development;
ORGANISATIONAL STRUCTURE AND INSTITUTIONAL CAPACITY (Continued) Strengths Good relationship with organized labour Existing political support Sound management and control systems in place Weaknesses LED division lacks adequate capacity (vacant positions) The municipality lacks capacity in professional engineers and professional technologists (scarce skills) Inadequate process control capacity to deal with water and wastewater, issues of blue & green drop coordination.
11. DRAFT BUDGET 2021/2022
UNDERLYING BUDGET PRINCIPLES FOR 2021/2022 To eliminate budget deficit and ensure that the budget is cash backed Prioritise key services for provision of water and sanitation as well as funding contractual obligations Only critical posts to be filled in order to manage and stabilise personnel costs and keep the costs 41% to total operating expenditure Implement cost reflective tariffs in order to reduce reliance on government subsidies and grants Take into account national imperatives such as mSCOA and budgeting for asset maintenance and refurbishment Reduce spending on non priority spending including overtime, travelling costs, security and fleet management 40
MUNICIPAL REVENUE Operating revenue decreases from R1.189b to R1.110b in the 2021/22 financial year and increases to R1.192 billion in the 2023/24 financial year. The decrease from the adjusted budget is due to the once off special covid19 equitable shares received in 2020/21 of R105m, to assist the municipality The tariffs are increased by 10 % in an endeavour to have a cost reflective tariff compared to the decrease of 8% in the 2020/21. Capital revenue decreases from R505.8m to R473.1m in the 2021/22 financial year and increases to R566.4m in 2023/24 financial year.
REVENUE BUDGET 2021/2022 Description Allocation R 1 110 737 874.84 Total Operating Revenue R 473 097 002.00 Total Capital Revenue R 1 583 834 876.84 TOTAL REVENUE BUDGET
CAPITAL EXPENDITURE The total capital expenditure funded from conditional grants decreased from R505.6m to R473.1m in the 2021/22 due to increased funding allocation from WSIG conditional grant and MIG. Funding for capital grants increases to R566.4m in the 2023/24 financial year due to increase in MIG funding. The WSIG is allocated R50m compared to R53.4m in the previous year. The MIG is allocated R413.6m for capital projects in the 2021/22 financial year and other funds have been budgeted for MIG overheads and VIP sanitation. RRAMS is allocated R2.4m in the 2021/22 and it increases to R2.7m in the 2023/24 financial year.
CAPITAL EXPENDITURE 2021/2022 Description Allocation As Percentage MIG RRAMS WSIG R413 560 002.00 R2 437 000.00 R50 000 000.00 87% 1% 11% Sub total Treasury funded OWN FUNDED R465 997 002.00 R 7 100 000.00 98% 2% TOTAL CAPEX R473 097 002.00 100%
OPERATING EXPENDITURE The departmental allocations on operating expenditure amounted to R1.103b in the 2021/22 and increases to R1.192b in the 2023/24 financial year.
BUDGET DEFICIT The municipality has budgeted for a surplus of R215k in the 2021/22 financial year and increases to an operating surplus of R364k in 2023/24 in financial year.
DEPARTMENTAL BUDGET ALLOCATIONS 2021/2022 Department Executive Council - Speaker's office Allocation Amount - R % Allocation 42 272 943.81 4% Executive Mayor's office 38 753 120.38 4% Municipal Manager's office 73 779 906.36 7% Budget and Treasury Infrastructure and Water Services Planning and Econ Development 198 210 786.72 18% 533 024 592.90 48% 16 635 057.72 2% Community services Sekhukhune Development Agency 70 987 803.37 6% 4 537 800.00 0% Corporate Services 125 221 290.01 11% Total 1 103 423 301.27 100%
EMPLOYEES RELATED COSTS 2021/2022 Department Executive Council - Speaker's office Executive Mayor's office Municipal Manager's office Budget and Treasury Infrastructure and Water Services Planning and Econ Development Community services Corporate Services Totals % of operating expenditure Amount - R % Allocation 16 485 020.94 4% 30 018 969.38 7% 19 835 197.21 5% 45 187 508.59 10% 209 296 762.30 48% 9 925 057.72 2% 67 119 118.41 15% 37 931 896.77 9% 437 799 531.32 100% 40.5%
INTRODUCTION TO TARIFFS FOR 2021/2022 Sekhukhune District Municipality uses block or stepping tariff approach which categorizes the tariffs for services , the more customer use the more the tariff Customers in all local municipalities are currently billed the same tariff since the alignment in 2016/17. For Indigent households it is proposed that the first 6 kilolitres (6000 litres) be free and any consumption in excess of more than 6kl, it be paid for. During 2020/2021 municipality decreased its tariffs by 8%, which Provincial Treasury recommended that it should have been in increase to ensure that tariffs are cost reflective.
TARIFFS FOR 2021/2022 For 2021/2022 municipal services tariffs increased by 10% for municipal services and other revenue sources tariffs are also to be increased by 10% , moving towards cost reflective as recommended by Treasury are to be New Tariff for Waste Water used by farmers is proposed at half the normal services tariffs.
