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INTEGRATED DEVELOPMENT PLAN Review 2015 – 2016

CONTACT OFFICE OF THE MUNICIPAL MANAGER

MAY 2015

P.O. BOX 26, CALA, 5455

ERF 5556, UMTHATHA ROAD: TEL – 047-877 5200, FAX – 047 – 877 0000

P.O.BOX 21, ELLIOT, 5460

15 MACLEAR ROAD, ELLIOT: TEL – 045 – 9311011 / FAX – 045 – 9311 361

WWW.SAKHISIZWE.GOV.ZA

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Table of Contents

SECTION A – EXECUTIVE SUMMARY

1 INTRODUCTION 9

1.1 Objectives of this review 9

1.2 The development challenge 9 1.2.1 Demographic dynamics 9 1.2.2 Basic Infrastructure & Service Delivery 9 1.2.3 Economic Development and Environment 10 1.2.4 Municipal Institutional Development & Transformation 10

1.2.5 Good Governance 10 1.2.6 Financial Viability 10

1.3 Development priorities for 2015/2016 10

1.4 Planning for the future 11

2 PROCESS PLAN 12

2.1 Organisational Arrangements 12 2.1.1 IDP Steering Committee 12 2.1.2 IDP Representative Forum 12

2.2 Roles and Responsibilities of Stakeholders 13

2.3 Community Participation Strategy 14

2.4 Activity Process Plan 15

2.5 Mechanisms and Procedures for Alignment 20

2.6 Main Legislation and Policy framework 20

SECTION B - SITUATIONAL ANALYSIS

3 LOCALITY CONTEXT 22

4 DEMOGRAPHIC PROFILE 22

4.1 Population Size & Household dynamics 22

4.2 Population gender & age dynamics 23

5 SERVICE DELIVERY PROFILE 23

5.1 Water and Sanitation 24

5.2 Telecommunication 28

5.3 Roads, Bridges and Storm water 28 5.3.1 Roads Management & Storm water Maintenance Plan 29

5.4 Transport 33

5.5 Public Amenities & Community Facilities 33

5.6 Free Basic Services 44

5.7 Energy & Electricity 48

5.8 Access to land and Human Settlements 49

5.9 Housing delivery 50

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5.10 Overview of housing projects in Sakhisizwe 51

The following tables give an overview of existing housing initiatives by the department of Human Settlements within Sakhisizwe areas. 51

5.11 Agriculture 54

5.12 Solid Waste Management services 55

5.13 Environmental & Climate Change Management 56 5.13.1 Natural Environment Analysis 57

5.13.2 Safe and secure environment 57

5.14 Social cohesion & development programmes 57

6 FINANCIAL VIABILITY PROFILE 64

6.1 Economic overview 64

6.2 Auditor General Concerns 66

6.3 MTREF Budget 2013/14 – 2016/17 70 6.3.1 Objectives of the 2015/2016 budget process 96 6.3.2 Approach adopted to 2015/2016 budgeting 96 6.3.3 DORA Allocations 2014/15 - 2016/17 96

6.3.4 MTREF revenue budget for Sakhisizwe LM. 98

6.3.5 Sakhisizwe MTREF expenditure budget in support of this IDP 101 6.3.6 MTREF budget by vote. 103 6.3.7 Sources of MTREF budget by vote 104

6.3.8 Sakhisizwe Capex by vote - MTREF 104 6.3.9 The 3-Year Infrastructure Plan as per Technical services 106

6.4 Financial Strategies 2015/2016 110

6.5 Financial Policies for 2015/2016 111

7 LOCAL ECONOMIC DEVELOPMENT PROFILE 114

7.1 General Indicators for economic development 115 7.1.1 Gross Development Product 115 7.1.2 Employment 116 7.1.3 Income & poverty distribution 118

7.1.4 LED Implementation Plans 119

8 MUNICIPAL INSTITUTIONAL DEVELOPMENT AND TRANSFORMATION PROFILE 120

8.1 Powers and Functions 120

8.2 Institutional Operational Strategic Analysis 122

8.3 Organizational Arrangement - organogram 128

9 GOOD GOVERNANCE & PUBLIC PARTICIPATION PROFILE 130

9.1 IDP reviews & MEC Assessment Response Plan 130

9.2 Governance systems 130

9.3 Inter- Governmental Relations 130

9.4 Public Participation & Promotion of Local Democracy 131

9.5 Special Programmes 131

9.6 Inter-municipal planning and joint delivery of strategic programmes 131

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9.7 Anti-corruption Strategy 132

9.8 Audit Committee 132

9.9 Customer care relations 132

10 SPATIAL DEVELOPMENT FRAMEWORK 133

10.1 Legal framework 133

Ensuring a uniform planning system 134

Providing a national spatial planning framework 134

10.2 The provincial framework 134

10.3 Overview of the SDF concept 135

10.4 SDF proposals for Sakhisizwe LM 135

10.5 The overall framework for Sakhisizwe LM 139

10.6 Land Use Management framework (Cala & Elliot) 139

11 KEY DEVELOPMENT PRIORITIES FOR 2015/2016 141

SECTION C - VISION

12 VISION 142

SECTION D - MISSION

13 MISSION 142

SECTION E - OBJECTIVES & STRATEGIES

14 BROAD STRATEGIC DEVELOPMENT OUTCOMES 142

SECTION F PROJECTS

14.1 Capital project list by Vote 187

14.2 The 3 Year Infrastructure Plan as per Technical services 189 14.2.1 Summary of capital projects to be implemented in 2015/2016 191 14.2.2 The 3-year capital projects to be funded by Chris Hani DM in Sakhisizwe LM (2014/15 up to 2016/17) 191 14.2.3 Roads & Stormwater projects planned by the Department of Roads & Public Works in Sakhisizwe LM (2014/15 up to 2016/17) 193 14.2.4 Housing projects planned by the Department of Human Settlements in Sakhisizwe LM (2014/15 – 2016/2017) 194 14.2.5 Agricultural projects planned by the Department of Agriculture and Agrarian Transformation for Sakhisizwe LM (2015/16) 195

14.3 Sector Plans 196 14.3.1 Integration and alignment with other spheres of government 196

14.3.2 Alignment of Sakhisizwe IDP with EC PDGS development targets197 14.3.3 Integration & Alignment of internal sector plans / policies 197 14.3.4 Cala town bulk water and sewer master plan 198

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14.3.5 Maintenance plan 198

14.3.6 Special Programmes 199 14.3.7 Community based Plans 200

14.3.8 MPAC and Leadership Development 200 14.3.9 Audit Action Plan 200 14.3.10 Housing sector plan 200

15 PERFORMANCE MANAGEMENT 200

15.1 Status of the framework document 200

15.2 Working definition 200

15.3 Policy context for municipal PMS 201

15.4 Legal context for municipal PMS 202

15.5 Other benefits for establishing PMS 204 15.5.1 Increased accountability 204

15.5.2 Learning and improvement 204 15.5.3 Early warning signals 204 15.5.4 Effective decision-making 204

15.6 Principles guiding PMS implementation 204

15.7 Institutional arrangements 205 15.7.1 PMS Co-ordination 205

15.7.2 PMS Audit function 205 15.7.3 Public participation 205 15.7.4 Stakeholder Roles and Responsibilities 206

15.8 PMS model for Sakhisizwe LM 206 15.8.1 What is a model? 206

15.8.2 Why is a model important for PM? 206 15.8.3 The Municipal Scorecard model 207

15.8.4 Levels of scorecards in a municipal scorecard model 209

15.9 Monitoring and measurement of indicators 210

16 Performance reporting and auditing 210

17 Performance reviews 212 17.1.1 How should reviews be conducted? 212 17.1.2 Suggested levels of reviews 214 17.1.3 Evaluation and improvement of the municipal PMS 216

18 ANNEXURE 01: Approved Detail Organogram 218

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GLOSSARY OF TERMS ABET Adult Based Education and Training ABSA Amalgamated Banks of South Africa AIDS Acquired Immune Deficiency Syndrome ASGISA Accelerated and Shared Growth Initiative for South Africa CASP Comprehensive Agriculture Support Programme CBO Community Based Organization CHDM Chris Hani District Municipality CHARTO Chris Hani Regional Tourism Organisation CPF Community Policing Forum CSIR Council for Scientific and Industrial Research DBSA Development Bank of South Africa DEAT Department of Environment and Tourism (Also known as DEA) DFA Development Facilitation Act No 67 of 1995 DLA Department of Land Affairs DLGH Department of Local Government DM District Municipality DME Department of Mineral and Energy DoALR Department of Agriculture, Land Reform & Agrarian Transformation DoE Department of Education DoH Department of Health DH Department of Housing DoSD Department of Social Development DoRT Department of Roads and Transport DPLG Department of Provincial and Local Government (National) DPW Department of Public Works DSAC Department of Sport, Arts & Culture DWAF Department of Water Affairs and Forestry ECA Environmental Conservation Act EIA Environmental Impact Assessment ES Equitable Share (grant) FBS Faith Basic Services ECDC Eastern Cape Development Corporation ECPGDS Eastern Cape Provincial Growth & Development Strategy EXCO Executive Committee GP Gross Geographic Product GIS Geographical Information System GTZ German Technical Cooperation GVA Gross Value Added HDI Human Development Index HIV Human Immune Deficiency Virus HR Human Resource IDC Independent Development Corporation IDP Integrated Development Plan IDT Independent Development Trust ICT Information Communication & Technology ITP Integrated Transportation Plan IWMP Integrated Waste Management Plan LDO Land Development Objectives LED Local Economic Development MEC Member of the Executive Committee MIG Municipal Infrastructure Grant MFMA Municipal Finance Management Act MSIG Municipal Support & Institutional Grant


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MSyA Municipal Systems Act, 2000 MStA Municipal Structures Act, 1998 NDC National Development Corporation NEMA National Environmental Management Act NER National Electrification Regulator NGO Non-Governmental Organizations NSS National Sanitation Strategy PATA Promotion of Administrative Justice Act PMS Performance Management System PPP Public Private Partnership RDP Reconstruction and Development Programme REDs Regional Electricity Distributors RTP Responsible Tourism Planning SMME Small Medium and Micron Enterprises SoE State Owned Enterprises SoR State of Environment Report SADC Southern African Development Community SALGA South African Local Government Association SANDF South African National Defense Force SAPS South African Police Service SGB School Governing Body SMME Small, Medium and Micro Enterprises STDs Sexual Transmitted Diseases TB Tuberculosis VAT Value Added Tax VIP Ventilated Improved Pit (dry sanitation facility) WSDP Water Services Development Plan


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FOREWORD BY MAYOR

It gives me pleasure as the Mayor of Sakhisizwe Municipality to present once again to the Council and the public at large, as well as to our stakeholders, the revised Integrated Development Plan and Budget for the 2015 -2016. This review marks a major milestone in the life and term of this council. We have committed to transforming the lives of our people during our term and this IDP are but one of the ways that we seek to advance that goal as a council. During the previous term we were faced with many challenges which compromise our efforts to make people’s lives better due to lack of both human and financial resources. I believe that tomorrow belongs to the people who build it today, we have to continue with right strategies so that tomorrow is better than today. As we finish this council term, I wish to urge all our stakeholders to rally behind this council in making the lives of our people better. This IDP provides a useful guide on how we shall improve service deliver, local economic development, financial viability, municipal institutional development and transformation as well as good governance and effective public participation in Sakhisizwe. Our performance reports indicate that while considerable gains have been achieved in certain areas of our interventions, more needs to be done in especially the areas of obtaining a clean audit, expanding basic services, fighting the scourge of poverty, inequality and HIV. /Aids among our people. This we cannot achieve without adherence proper institutional systems and effective governance processes. We therefore commit to improving our internal systems of control within the budget and treasury office, accountability and performance management within the office of MM and Mayor, capacity building and strengthening of our operational machinery including strict oversight on our administration. We shall work hard as this council to ensure that all of our resources are led and rallied effectively to deliver on the promise of this IDP and Budget. We shall also embark in a collective approach to continue to strengthen our partnership in ensuring the integrated approach, to work with all government spheres, private sector, NGO’S, CBO’ and the community in general. IGR will be strengthened to ensure better coordination and mobilization of development resources and objectives in our jurisdictional areas. “Together we can do more” - our partners must work close with us to improve the situation described in this IDP and to reverse backlogs for roads, infrastructure, electricity, water and sanitation and other essential services so that more investors will be motivated to invest in our municipality. In presenting this IDP and Budget for adoption we outline our intention as the municipality in order to give effect on municipal programs and positively contribute to the betterment of life for people of Sakhisizwe. This IDP and Budget that is presented today indicates our collective commitments as COUNCIL, COMMUNITIES AND COUNCIL in responding to the needs and plight of our people. _________________ Hon Mayor Cllr Jentile


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SECTION A - EXECUTIVE SUMMARY

1 INTRODUCTION

This section gives an executive summary of the Sakhisizwe Municipal IDP 2015/16 report.

1.1 Objectives of this review

The main objectives of this review are to:

Comply with legal requirements in terms of LG Municipal Systems Act of 2000

Update our planning information and integrate ward based planning

Improve credibility of our IDP document

Address the concerns and comments made by MEC on our previous document so that we may achieve a credible plan

Correct and prevent recurrence of the issues relating to the alignment of Planning, Governance and Performance Management processes raised as concerns to the Auditor General (AG) in our annual reports

1.2 The development challenge

Sakhisizwe Municipality is a local municipality that can be categorised as a B4 (largely rural with a low economic and revenue base). It is still struggling to emerge from the establishment phase of local government largely due to past internal instability and poor administrative capacity. The resultant situation from such instability manifest in the existence of high service backlogs, poorly structured and underperforming local economy. However, the last year or so has seen marked improvements in political stability (public participation and governance processes) and steady growth in administrative capacity (the top structure of the organization has been fully laid and there are noticeable investments in infrastructure development fleet and so on). The promise to a better future remains an elusive goal for many households and

peoples who are trapped into a vicious cycle of poverty and unemployment. It remains a commitment of this council to lay a solid foundation for better life for all and to direct our development trajectory toward improved economic development, better service delivery and marked reduction in poverty and unemployment.

1.2.1 Demographic dynamics

Statistics South Africa released its report on the recent census count in 2012 and it estimated out population to be 63 582. The majority of population is female and youth. There are about 29,9 people per square kilometre.

1.2.2 Basic Infrastructure & Service Delivery

Our analysis shows that we continue to lag behind with provision of basic and other required services and run a strategic risk of not meeting our millennium and EC PDGS goals if this situation is not turned around, however it is encouraging to notice that rapid progress is being made to effect this turn around. We are convinced about Chris Hani District’s commitment to fastrack our community’s access to water & sanitation acceptable progress is made in this area. Our own competency on the functions run directly by us is severely affected by staff shortages, especially at senior levels. This is due to among others brain drain and better socio-economic profiles offered by our competitor employers. Further unnecessary delays are caused by failure by political principals to be decisive on priority projects on time. Infrastructure projects are hot bargaining chips for electioneering and political influence. As a result thereof, they are often subjected to never ending lobbying and bargaining. This leads to late commencement of planning. Our backlogs are water, sanitation, Electricity, Refuse, Road network (300km of gravel and approximately 62km of tarred surfaces). There are also other challenges such as poor accessibility of facilities and


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quality outputs affecting Education, Health, Public Transport, Social Development and Safety & Security. These challenges militate against our strength to better the lives of our people.

1.2.3 Economic Development and Environment

Sakhisizwe has an underperforming local economy unable to deal with strategic challenges such as poverty, unemployment and low revenue base. An LED strategy has been developed to institutionalise responses of the municipality to LED. However, our interaction with the said LED strategy revealed that it is in adequate to effectively perform what it is supposed to do. It is narrow, fails to consider critical issues, and has no implementation plan with clearly defined outcomes, targets, and timeframes. It also fails to take into account the current organogram and its directives towards the organogram. We recommend that this document be reviewed and aligned. GDP is estimated at about R463 million while unemployment remains as high as 36%. Key sectors with potential but currently under performing and needing focused interventions include Agriculture, forestry, Manufacturing and Tourism. While we acknowledge that ours is a small economy it is appreciated that it currently shows a better tress index of diversification at 79,7 compared to the of the region at 65,5. Our comparative advantage is in community services, agriculture and trade sectors.

1.2.4 Municipal Institutional Development & Transformation

We are still unable to perform all are expected mandate in terms of assigned powers and functions due to administrative and other capacity constraints. Our council is an executive system and administration is managed through 6 key administrative departments including that of the office of the municipal manager. However, we are constantly innovating to ensure greater participation by our communities in all aspects of our decision making. We have resolved to promote community participation and local democracy by implementing ward planning during 2014 through to 2017.

In terms of transformation, we are still largely male dominated in our management and administration. This is partly due to our poor scarce skills staff retention which leaves us with few options on who we employ and retain.

1.2.5 Good Governance

Sakhisizwe Local Municipality is politically and administratively stable. The Municipality has just been pronounced as one of viable municipalities who need not be merged with other supposedly better performing municipality. This is in testament of the commitment of the executive to push forward for a better local government. The findings of the Auditor General do not necessary indicate poor governance and administration, but point to poor audit education and inadequate systems. This is usually a secondary consequence resulting from in capacity. IGR is existent with sector departments taking place. However, this needs to be strengthened. This is a co-operation environment that requires other sectors to take IGR seriously.

1.2.6 Financial Viability

As a municipality, we are defined by national treasury as a weak low capacity organization. Our current systems of financial control as found by auditor general reports of the last 2 years are evidently showing signs of improvement. We however remain weak in our main operation areas namely: (a) Revenue Enhancement (b) Debt Collection © Supply chain management (d) Expenditure management We have resolved to pay specific attention to the following critical areas of our turnaround strategy:

- AG queries

- Debt collection

- Audit education

- Systems development and financial

controls

- Revenue enhancement

1.3 Development priorities for 2015/2016

The following are key priorities and strategic development goals of SLM in 2015/2016


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1) Service Delivery

Strategic Goal: Eradicate

backlogs in order to improve

access to basic infrastructure

and services and ensure

proper operations and

maintenance by 2017

Intended outcome:

Sustainable delivery of

improved services to all

households (in line with the

term of council, 2012 – 2017)

2) Local Economic Development

Strategic Goal: Create an

enabling environment that

promotes the development of

the local economy and facilitate

job creation

Intended outcome: Improved

municipal economic viability (in

line with term of council, 2012 –

2017).

3) Financial Viability

Strategic Goal:

To improve overall financial

management in the

municipality by developing and

implementing appropriate

financial management policies,

procedures and systems

Intended outcome: Improved

financial management and

accountability (in line with

terms of council, 2012 – 2017)

4) Good Governance & Public Participation

Strategic Goal: Promote a

culture of public participation

and good governance.

Intended outcome:

Entrenched culture of

accountability and clean

governance (in line with term of

council, 2012 - 2017)

5) Municipal Institutional Development & Transformation

Strategic Goal: Improve

organizational cohesion and

effectiveness.

Intended Outcome: Improved

organizational stability and

sustainability (in line with the

term of council, 2012 – 2017)

Ensure a fully functional,

responsible, accountable and

responsive administration by

2017

6) Spatial Planning and Land Use

management

Strategic Goal: Improve

overall use and

management of land and

environment

Intended Outcome:

Sustainable planning and

use of Land resource and

care for the environment

1.4 Planning for the future

This IDP review has not amended the agreed vision and mission of the municipal council ever since it was amended in Mountain Shadow at our Strategic Plan. The document also provides a detailed list of programmes and projects to be implemented in attempting to reverse the development challenge outlined above. It further provides a framework for ensuring smooth integration, alignment and synergy in the implementation of this IDP’s intention. It concludes with the outline of the processes followed in approving this IDP review for implementation.


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PRE-PLANNING PHASE

2 PROCESS PLAN

In terms of the Municipal Systems Act, Chapter 5, Part 3, a Municipal Council must review its integrated development plan annually in accordance with its performance measurements in section 41; and to the extent that changing circumstances so demand and may amend its integrated development plan in accordance with a prescribed process plan. Further, the Local government Municipal Finance Management Act 56 of 2003 provides for the Mayor/Speaker of the municipality to:

Co-ordinate the process for

preparing the annual budget and

for reviewing the municipality’s

integrated development plan and

budget-related policies to ensure

that tabled budget and revisions of

the integrated development and

budget related policies are mutually

consistent and credible.

Sakhisizwe council adopted its process

plan for the review of the IDP 205/2016 on

04 September 2013.

2.1 Organisational Arrangements

The following arrangements have been set

in place to institutionalize community/

stakeholder participation and also to enable

the municipality to manage the drafting of

the IDP Review. Through these platforms,

municipal stakeholders will be empowered

to contribute, influence and inform decision

making relating to municipal affairs and

general issues relating to service delivery

and planning.

2.1.1 IDP Steering Committee

The IDP steering committee comprising

largely of internal senior management is

tasked to:

Provide technical and advisory

support to the IDP Manager

(Municipal Manager – Mr. T.

Samuel) and drafting team

Perform daily planning activities

including the preparation and

facilitation of events;

documentation of outputs and

making recommendation to the

IDP Manager and the Municipal

Council and Mayor

Commission in depth studies when

necessary

Act as the secretariat for the IDP

Representative Forum.

IDP Steering Committee work sessions and

meetings may, from time to time be

arranged by the IDP manager or his/her

delegate in order to implement this process

plan. Ideally, these sessions would precede

the representative forum workshops.

2.1.2 IDP Representative Forum

The IDP representative forum forms the

main platform for broad consultations and

debates on issues and policy

recommendations. It is chaired by the

Mayor-Councilor Mlamli Sydwell Jentile and

composed of representatives across our

stakeholder community including but not

limited to the following institutions or

interest groups:


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Secretariat of IDP steering

committee or the drafting team

Councilors, Ward Committees and

Community development workers

Government Organs including

Sector Departments, State Owned

Entities and our District

Municipality

Business Formations

Youth Formations

Rate payers association

Traditional Leaders

Civic bodies & Community

Organizations (NGO’s, CBOs etc.)

IDP representative forum workshops or

meetings shall be convened by the Mayor

from time to time in order to consult

municipal stakeholders on critical issues

relating to municipal planning and decision-

making in general.

2.2 Roles and Responsibilities of Stakeholders

The following table gives a list of stakeholders and their respective roles and responsibilities

ACTORS ROLES AND RESPONSIBILITIES

Council (chaired by Cllr Nondumiso Mananga)

Oversee the development of, Consider and adopt reviewed IDP 205/2016

Promote public participation via Ward Based plans, Representative Forum & Mayoral Imbizos / Roads Shows

Keep public informed about the contents of the IDP

IDP Manager (MM – T. Samuel)

Oversee the administration of the IDP review development process. This role is delegated to the strategic manager Mr. Mdyosi even though the municipal manager remains fully responsible for the successful development of this IDP.

Manage the local municipal IDP by ensuring that all daily planning activities are performed within an efficient and effective consideration of available time; financial and human resources;

Encourage an inclusive participatory planning process and compliance with adopted Process Plan

Facilitate the horizontal and vertical alignment with the District and other spheres of government plans

Ensure that the planning process outcomes are properly documented

Manage and work closely with appointed service providers Coordinate with various government departments and to

ensure that all the projects, strategies and objectives of the local municipality are shared and distributed amongst government departments so that they might incorporate them in their planning process and vice versa

Heads of Departments & Senior Management

Provide technical and advisory support to the IDP Manager Perform daily planning activities including the preparation

and facilitation of events; documentation of outputs and making recommendation to the IDP Manager and the Municipal Council

Interact with the relevant governance cluster regarding the prioritization of their individual departments projects and programmes for the following years

Provide clear terms of reference to service providers


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ACTORS ROLES AND RESPONSIBILITIES

Chairpersons of Governance Clusters x 3

Promote integration and alignment of plans between Sakhisizwe and other agencies involved in the advancement of their respective mandates.

Provide guidance to relevant line functional departments to ensure effective coordination and integration of their mandate issues into the mainstream IDP process

The clusters include 1. Economic and Infrastructure Development Cluster 2. Social Development Cluster & 3. Governance & Finance and Administration. These clusters are chaired by councilors M Mxhonywa, N Stofile and Ntakana, respectively.

District Municipality

Provide support and guidance on IDP Review process Assist municipalities to achieve the target dates Interact with service providers to ensure that a quality

product is provided Assist with workshops Project Management and Implementation Support Services Ensure that clusters achieve integrated planning Ensure that an uniform reporting mechanism is devised

Sector Departments

Ensure the participation of Senior personnel in the IDP review process

Horizontal alignment of programmes and strategic plans within the clusters

Provide technical support and information to the planning process

Contribute relevant information to support the review process within the clusters

Incorporate district and local municipal projects into departments planning within the clusters

National & provincial governments

Monitor and evaluate the preparation and implementation process

Provide training and capacity building support to the local municipality – Cogta guide for credible IDPs

Coordinate support programmes so that overlapping does not occur

Provide technical guidance and monitor compliance with provincial policy and legal framework

Stakeholder Communities

Input and influence plans and decision making

2.3 Community Participation Strategy

ISSUE PARTICIPATION MECHANISM & PLANNING EVENTS

Planning participation

Use of workshops & Community Based Plans

Attendance at meetings, workshops etc.

Interchanging of venue logistics between Elliot and Cala to ensure convenience

Support with transportation where it is financially feasible Issuing of invitations via popular media and local institutions

like ward committees, public announcements in community radio, newspapers and social events etc.

Effective communication

Meetings shall largely run in IsiXhosa and this is done to allow the majority of participants to inputs meaningfully without restrictions of language

Approval & Comments on the document

Use of ward level Mayoral Imbizos and Road shows further explaining the budget and IDP Review 2015/2016 to our communities


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2.4 Activity Process Plan

The following table is attached and illustrates the IDP review action programme and also gives an indication to the planning activities that will be undertaken in a calendar format.

2015/16 SLM IDP-BUDGET-PMS PROCESS PLAN

Activities Timeframe Responsible Department

A Preparation phase / Pre-planning

1 IDP/PMS Mangers Session for Alignment of IDP Process Plans 23/24 July 2014 IPED Signing of Performance Agreements by HOD’s 30 July 2014 MM

2 Drafting of IDP/Budget/PMS Process plan 2015/2016 13 August 2014 IPED 3 Council Approval of Process Plans (IDP & Budget) 26 August 2014 IPED/BTO District Mayors Forum 26 August 2014 MM

Technical IGR Meeting

02 SEPTEMBER 2014

MM

CHDM - IDP REP FORUM

09 SEPTEMBER 2014

MM

IDP Rep Forum-Process Plan 2015/2016

12 September 2014

IPED/MM

Ordinary Council meeting

30 September 2014 MM

Quarter 1 Performance reporting (July - Sept) 08 October 2014 HOD's/MM B+C Analysis Phase / Monitoring and evaluation


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2

Assess implementation progress (HODs to present action plans for existing projects and planned completion dates for projects, aligning expenditure with progress), impact of new information/unexpected events, evaluation of achievement with regard to objectives, strategies and projects (per programme), overview of funding available per cluster (both from savings as well as new funding from operating budget and from external funds), possible implications on programmes of additional sector information.

July - October 2014

All Depts. Championed by HOD's

Audit Committee 03 October 2014

MM

1ST Quarter Institutional Performance Report to Mayor 14 Oct 2014 M.M

MPAC: Audit Committee 31 October 2014 MM

Council Meeting (Draft Annual Report ) 12 November 2014 M.M.

IDP/PMS Managers Feedback Session 13 November 2014 IPED

Technical IGR Meeting 19 November 2014

MM

IDP/PMS/Budget Steering Committee meeting to review Implementation progress and report on gaps identified during the analysis phase 18 November 2014

IPED

Exco Meeting 03 December 2014 M.M.

District Annual Report Roadshows

08-11 December 2014

MM

Ordinary Council Meeting 11 December 2014 M.M.


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Quarter 2 Performance reporting HOD’s to MM (Oct - Dec) 07 January 2015 HOD"s & MM D Strategies Phase / Refined objectives, strategies, programmes and projects phase

Annual Report-Comments on Audit committee 23 January 2015 M.M. Mid- Year Performance Report to Mayor 13 January 2015 MM

Exco meeting 14 January 2015 M.M.

Budget Steering meeting Chaired by Mayor to consider Adjustment Budget 15 January 2015

BTO

IDP/Budget Steering Committee to approve draft budget allocations (IDP/ Budget link) 20 January 2015

IPED/BTO

Council Meeting (Final 2013/14 Annual Report & Mid -Year Report) 27 January 2015 M.M.

Mid- Year Performance Assessments of HOD’s

02-04 February 2015

MM

IDP/PMS Managers Session 17 February 2015 IPED

Technical IGR 17 February 2015 MM

Institutional Strategic planning session. Adopt proposed overall direction of the IDP - agree on main themes and key strategic objectives and key financial issues. Refine objectives, strategies, programmes and draft projects as necessary for MTEF period

18-20 February 2015

IPED/M.M.

IDP/PMS/Budget Steering Committee meeting to present the Draft 2014-2015 IDP and Budget 10 March 2015

BTO/M.M.

Annual Performance Appraisals 2013/14 Annual Report 09-12 March 2015 MM

IDP Rep Forum 13 March 2015 IPED

5 MPAC Hearings on Annual Report 13 March 2015 M.M.

Draft IDP and Draft Budget published. Advertise for public comment (21days) 30 March 2015

IPED


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Council Meeting 31 331 March 2015 MM

Quarter 3 Performance reporting by HOD’s (Jan - March) 08 April 2015

HOD's & MM

E Reviewed IDP document (Integration/programme implementation and operational

plan)

Audit Committee 10 April 2015 1 IDP/Budget road shows - public hearings 06-10 April 2015 MM/IPED/BTO IDP/PMS Managers Session 08 May 2015 IPED

IDP/Budget Steering Committee meeting (implementation and operational plan) 13 May 2015

IPED

3rd Quarter Institutional Report to Mayor 14 April 2015 MM Exco meeting 06 May 2015 MM Municipal Wide SDBIP Engagement 12 May 2015 MM Budget Steering Meeting Chaired by Mayor 13 May 2015 BTO

IDP/Budget/PMS Steering Committee Meeting 14 May 2015

MM/IPED

Technical IGR 20 May 2015 MM IDP Rep Forum 21 May 2015 IPED Ordinary Council meeting 26 May 2015 MM

4

Incorporate relevant comments to the Draft final reviewed IDP April - May 2015

IPED

F Approval phase


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3 Council Workshop on the Final IDP prior Adoption April –May 2015 M /IPED Submission of SDBIP to Exec Mayor for Approval 04 June 2015 MM Audit Committee 12 June 2015 MM MPAC ( 3rd Quarterly report & Sec 52 d) 17 June 2015 MM SDBIP Approved and Performance Agreements signed 23 June 2015 MM Council Meeting 26 June 2015 MM

Stakeholders Engagement on IDP & Budget

15-19 June 2015

MM

4 Quarter 4 Performance reporting (April - June)) 10 July 2015 HOD"s & MM G Performance Management System

2 Drafting of Service Delivery and Budget Implementation Plan (SDBIP)

MM

3 Submit draft SDBIP within 14 days after approval of the budget 04 June 2015

MM

4 Approval of SDBIP within 28 days after budget 23 June 3015

Mayor

5 Signing of MM and Section 57 Managers Performance Agreements 23 June 2015

MM

6 Publicize SDBIP and Performance Agreements no later than 14 days after approval 07 July 2015

MM


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2.5 Mechanisms and Procedures for Alignment

The IDP Manager will be responsible for

ensuring smooth coordination of the

municipal IDP development and its

alignment with the district IDP review

through the use of workshops and bilateral

discussions with affected sector

departments. Inter-departmental Forum will

be utilized as a mechanism for alignment of

programmes and projects.

PHASE ALIGNMENT ON CROSS CUTTING ISSUES WITH WHOM

2. Process Plan

+ Situation

Analysis

IDP & Budget process activity plans

Sector Department planning & Municipal

IDP inputs

BTO &IPED

Affected Gov

Departments

2. Strategies Technical input on objectives and goals

of programmes

Local and wide strategic debates

Affected Gov

Departments

3. Projects Technical input on projects

Input on budgets

Cross cutting projects e.g. HIV/Aids

Affected Gov

Departments

4. Integration &

Alignment

Technical input

Sector alignment & integration

Affected Gov

Departments

5. Approval Submission; Comments on revised IDP’s Affected & interested

parties

2.6 Main Legislation and Policy framework

The Sakhisizwe Municipality’s IDP formulation and implementation processes will be bound by the following legislation and policy framework. Legislation framework

Constitution: 19996

Development Facilitation Act

96 of 1995

White paper on Local

government of 1998

Municipal Structures Act 117 of

1998

Municipal Systems Act 32 of

2000 + its regulations of Aug

2001

Municipal Finance

Management Act: 2003

Municipal Property Rates Act:

2004

All other laws governing and

regulating development in

South Africa

Policy Framework

LG White paper of 1997

National Planning &

Performance Management

circulars by Cogta, National

Treasury etc.

National Development plan

2030 of Nov 2012

National LG Turn Around

Strategy for LG - 2009

Eastern Cape Provincial

Growth & Development Plan

(PGDP) (2009-2014)

Eastern Cape Spatial

Development Plan


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Credible IDP guide by Cogta

District Municipal Strategic

Plans (IDP, SDF, LED etc.

Municipal STRATPLAN 2015

report

Any other applicable policies

not mentioned directly


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SECTION B - SITUATION ANALYSIS

This section provides an overview of the composite development challenge facing Sakhisizwe Municipality based on its own stakeholder’s assessment and analysis.

It highlights key issues and challenges relating to the municipality’s development priorities as captured under the themes Demographic, Institutional Transformation and Development, Governance, Financial Viability, Local Economic Development, Service Delivery profiles and Spatial Development Framework.

3 LOCALITY CONTEXT

Sakhisizwe is a category B municipality (B4

type with largely rural (61%) and low

revenue base) situated within the Chris

Hani District (see figure below) of the

Eastern Cape Province. It is made up of the

main town of Cala and Elliot as well as the

surrounding rural villages and farms.

The Sakhisizwe Local Municipal Area consists of 9 Wards as reflected in the map above. The main administrative centre is located in Cala (Ward 5). Elliot (Ward-1) serves as a secondary administrative centre with some offices like Budget and Treasury located there.

4 DEMOGRAPHIC PROFILE

4.1 Population Size & Household dynamics

The recent statistical report issued in November 2012 by the Statistics South Africa estimates total population of Sakhisizwe municipality to approximately 63582 people and 16151 households. This indicates a slight population growth of 0,44% between 2001 and 2011. The


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average household size remains around 4 people per household.

About 51,9% of households are female headed. Given also that Sakhisizwe is a largely rural municipality with just over 39% of its households residing in the urban centres and peri-urban areas of Cala and Elliot, it is important to design development programmes suitable to this situation.

The population density is estimated by the municipal SDF to be 29,9 people per

square kilometre. The highest concentrations are largely found in the urban centres. StatsSA 2012 estimates that formal dwelling account for 64,1% of the build environment.

The following figure provides a distribution of population by wards within Sakhisizwe and it is based on calculation drawn from the recently concluded ward based planning process.

In terms of the above figure wards 1, 3 and 5 have the highest population concentration when compared to the rest of the wards. Just over 40% of the Sakhisizwe population resides in these 3 wards. It is also noted from the above figure that Sakhisizwe population is evenly distributed across the rest of the wards.

4.2 Population gender & age dynamics

There are more females than males in our population. For example, StatsSA 2012 claims that for every 100 females there are 93 males in our population. It is therefore imperative that our development programmes should pay critical attention to issues of women empowerment and integration into mainstream economy.

The analysis of gender age distribution shows that Sakhisizwe population is very youthful population with 57,5% of its population being people of the economically aged group ages 15 to 65 years. Another 35% comprises mainly children of ages 1 to 15 years while the balance of 7,5% is

accounted for by the elderly population ages of 65 years and more.

The dependency ratio (number of people in the economically aged group who are dependent on others for their livelihood) has slightly improved from about 89,8% in 2001 to about 73,8% in 2011. While this is a welcome improvement it is however recognised that it remains unacceptably high.

5 SERVICE DELIVERY PROFILE

Service delivery is the top ranked priority for the current council. A need was identified in our previous IDP and recent STRATPLAN to plan and develop a comprehensive infrastructure master plan which will give framework for long term planning in terms of:

Infrastructure Maintenance Plans

Infrastructure Expansion plans

Infrastructure Funding mechanisms


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Infrastructure Operational and Institutional Management plans

While the primary focus has mainly been on maintaining and expanding infrastructure in key areas linked to assigned powers and functions as an approach, the council and administration continue to engage strategic stakeholders like the District Municipality and other spheres of government with mandates on key infrastructure areas where there are challenges within the Sakhisizwe Municipality.

The aim of the engagement is to ensure signing of relevant service level agreements (SLAs) that will enable Sakhisizwe to deliver services in all our areas of need while not compromising our financial viability and management requirements.

Critical areas identified for SLAs include:

SLA AREAS

PARTNER IDENTIFIED

STATUS

Water & Sanitation services

Chris Hani DM

Expired June 2014

Electricity Supply

Eskom (license for Cala areas)

Does not exist

Emergency Services

CHDM, Prov. Gov + DoH

No SLA

Libraries DSRAC Being negotiated 2015

EIAs and State of Environment Report

Environmental Affairs + PMU

Does not exist

Disaster Management

CHDM & Province

Does not exist yet

Pounds Management

SPCA Being Negotiated

SLA AREAS

PARTNER IDENTIFIED

STATUS

Road Network Maintenance and Expansion

CHDM, Public Works, Roads & Transport

Does not exist

LED Strategy

Various agencies for funding mobilization

None concluded yet

Planning Support

CHDM, LG&TA, others

None concluded yet

Governance & Institutional Development support

DBSA, SALGA & Cogta

None concluded yet

As a developmental local government, we are expected to ensure sustainable delivery of services through our direct channels and in collaboration with and by facilitation of contributions from various other stakeholders and development agencies operating in our jurisdiction.

The section below gives an overview of the state of service delivery by looking at household access to basic and non-basic services that people often expect from government.

5.1 Water and Sanitation

Provision and governance of water and sanitation services in all our areas is a competence of the district municipality. We only play a facilitating role as Sakhisizwe municipality.

The figure below gives a comparison of household access to different levels of service for water. It draws its analysis from the Global insight statistics of 2012.


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The backlog for basic water supply is 39%. The following figure illustrates the distribution of water demand by ward level. It shows that wards 6 & 8 have the highest levels of water demand (17,5% & 17,6%). The water demand for wards 1, 3, 5& 10 is averaging 10% of total demand in the municipality while that of ward 2 & 4 averages just over 4,5%.

The CHDM has planned to fund the following projects within Sakhisizwe LM from its Municipal Water Infrastructure Grant of 2014-2016.

The figure below gives a distribution of water demand by ward level in the SLM.

Proj, Name 13/14 14/15 15/16

Cluster 4 (Lower Langanci; Upper Indwana; Upper Mnxe)

R 5 500 000

R 7 000 000

R 6 000 000

Elliot: Polar Park Water Services

R 2 000 000

R 5 500 000

R 7 500 000

R 7 500 000

R 12 500 000

R 13 500 000


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Sanitation backlogs remain high (51%) so much so that our municipality will not be able to meet the millennium development goal of wiping our backlog for household access to basic level of sanitation (VIP toilet).

In order to deal with current water backlogs the current MTEF is budget to spend R10,9 million in 2013/14 and this figure will increase to about R12,2 million for the year 2015/16.

For sanitation (waste water) the municipality has set aside approximately R9,3 million which will increase to R10,5 million by end of MTEF period 2015/16.

The figure below gives a comparison of household access to different levels of service for sanitation. It draws its analysis from the Global insight statistics of 2011.

It shows that 36% of households are served with below RDP level VIPs and another 1% still uses bucket by 2010 while 14% received no access to the service at all. The figure below uses StatsSA 2012 statistics to show estimate distribution of the water demand backlogs by ward levels.

In terms of the figure below the highest concentration for sanitation backlogs is in wards 5, 8 and 3 respectively. The highest concentration of households with access to sanitation by comparison is found in ward 1 followed closely by ward 8.


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In order to reduce the above backlogs, the

CHDM has allocated the following budget

for water and sanitation projects in SLM

from its MIG allocation.

Project Name (SLM Area)

2015/16 2016/17

Cluster 4 Water Supply Scheme: Upper Indwana Water Supply R 15 000 000 R 14 000 000.00

Cluster 4 Water Supply Scheme: Upper Mnxe Water Supply R 10 000 000 R 15 000 000.00

Cluster 4 Water Supply Scheme: Upper Lufutha R 5 000 000 R 1 000 000

Polar Park Water Supply: Phase 3

R 15 000 000

Cluster 4 Water Supply Scheme: North Eastern Scheme Reticulation

R 780 000.00

Cluster 4 Water Supply Scheme: North Eastern Scheme Reservoirs R 250 000.00 R 3 138 590.00

Mthingwevu Water Supply

R 8 970 000.00 R 6 929 615.98

Cala Bulk Services R 5 000 000.00

R 10 000 000.00

TOTAL: SAKHISIZWE LM

R 60 000 000 R 50. 068 206


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5.2 Telecommunication

Telkom is the main provider of the landline

telephone services in the Sakhisizwe area.

Cellular network coverage is patchy due to

the mountainous terrain as is television and

radio reception. Business

telecommunication services and facilities

are unreliable due to inadequate

infrastructure for broadband.

General communication is largely through the mobile and fixed telecoms. The last few years have seen a rise in privately operated mobile public phone services. The municipality has identified operational projects aimed at improving plans for network signal and broadband infrastructure improvement through partnership collaborations with established

operators in the ICT sector.

5.3 Roads, Bridges and Storm water

Functional road infrastructure is critical to economic development of an area. Sakhisizwe municipality has a direct responsibility for construction and maintenance of its access road network while other roads are the responsibility of other spheres of government including the district municipality, province and national department of roads and transport.

The majority of our tarred road network in the Sakhisizwe municipality are provincial and district roads and few access roads. There is no classified national road passing our municipality even though some commitments were pledged by SANRAL to assist with the repair and rehabilitation work on provincial roads R56 linking Elliot to Barkly East and Aliwal North as well as the R56 linking Elliot to Indwe

The rest of the municipality’s road network is gravel. It is often characterised by poor storm water drainage designs which often put a lot of pressure on the visual road index and surface durability especially during rainy seasons. There is over 300km of this type of road network which needs regular maintenance and upgrading.

In order to inform proper operational management, maintenance and

construction of new roads a Roads Management & Maintenance Master Plan is being considered. This plan will also cover aspects relating to the design, planning, implementation and maintenance of roads, transport, bridges and storm water infrastructure.

The main challenge to smooth delivery of roads and associated infrastructure is often lack of adequate funding and availability of engineering skills in the municipality. We depend exclusively on the limited MIG budget which is insufficient to cater for all our requirements.

Budgets for roads, transport and related activities shall be ring-fenced to our operational and capital budgets for infrastructure as may be approved for implementation through our PMU.

The department of roads and transport has approved the following expenditure for the CDHM areas.

Project Name

2015/16

Road Asset Management

R 5976 152.00

R 5976 152.00

The municipality has adopted an EPWP policy which is used to guide interventions for infrastructure maintenance and construction through labour intensive methods. These methods are also earmarked to contribute to short term job opportunities while delivering necessary infrastructure support.

Inputs from consultative representative forum discussions identified a number of strategic organizations which the municipality must establish links and partnerships for raising necessary capacity (funds, equipment and skill) to address our major challenges in the delivery of sustainable roads, storm water and bridge infrastructure. These include departments Public Works, Roads & Transport, Chris Hani District Municipality and Human Settlements as well as state owned enterprises like SANRAL and MISA.

It is noted with disappointment therefore that the EC department of roads and transport has not made any allocation to spend in the Sakhisizwe municipality for the remaining years in its MTREF budgeting.


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The focus for the next year will be on strengthening the chosen primary and secondary nodal development (NB: Sakhisizwe is part of the recently demarcated Queenstown Provincial Development Node) as well as enforce spatial linkages identified in terms of our spatial development framework (SDF). We hope that through this strategy we shall be able to integrate our space economy better. Thus able to achieve a functional road network capable of:

Facilitating effective movement

of people and goods

Linking of places of living to

social amenities, commerce

and production areas

Facilitating aesthetic

improvement in our public

space and CBDs

Disposing of excess rain water

to prevent unnecessary

damage to existing

infrastructure and properties

5.3.1 Roads Management & Storm water Maintenance Plan

SLM has a roads and storm water management and maintenance plan adopted in 2014. The plan is appended in this IDP document In terms of this plan, the municipality is intending to undertake

the following maintenance and repair work.

Existing machinery in SLM

No. Plant & Equipment No. Projected current cost

1. Tipper Trucks 2 Available

2. Grader 2 Available

3. Excavator 1 Available

4. TLB 2 Available

5. Water Cart 1 Available

6. Grid roller 1 Available

7. Low-bed Truck 1 Available

8. Dozer 1 Available

Programme for road maintenance

ACTIVITY INSPECTION TYPE URBAN/ TOWNSHIP ACCESS/ STREETS ROADS

RURAL ACCESS /INTERNAL ROADS

BRIDGES/MINOR STORM-WATER STRUCTURES/V-DRAINS/ CULVERTS (Urban roads)

BRIDGES /MINOR STORM-WATER STRUCTURES/V-DRAINS/ CULVERTS (Rural roads)

TRACKS /OTHER

Inspections Regular inspections of the road asset to be undertaken by a suitably qualified

Condition Assessment Inspections are undertaken to determine the condition of an asset, its relative life and where relevant, asset renewal requirements including asset register maintenance.

As per the Asset Management Policy


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ACTIVITY INSPECTION TYPE URBAN/ TOWNSHIP ACCESS/ STREETS ROADS

RURAL ACCESS /INTERNAL ROADS

BRIDGES/MINOR STORM-WATER STRUCTURES/V-DRAINS/ CULVERTS (Urban roads)

BRIDGES /MINOR STORM-WATER STRUCTURES/V-DRAINS/ CULVERTS (Rural roads)

TRACKS /OTHER

and experienced staff to determine condition, compliance with maintenance standards and risk

Condition & Risk inspections are undertaken to identify defects against set standards. Defects are rectified in accordance with the Table 2 -Defect Table in this document. Significant maintenance issues are also identified as part of this inspection process.

Once in twelve months/ After heavy rains

Once in twelve months & on receipt of complaint (Refer to detailed programme)

Once in twelve months & on receipt of complaint

Once in twelve months & on receipt of complaint

On receipt of complaint

Routine Maintenance Inspections are undertaken in conjunction with routine maintenance patrols to determine compliance with maintenance target intervention standards set out in, and programmed in accordance with this Maintenance Program.

As per the current Maintenance Program

Responsive inspections are undertaken in response to community complaints/reports, office or municipal staff reports. Identified defect works are rectified in accordance with the Defect Table. Identified maintenance works are programmed in accordance with the Maintenance Programme.

Within 48 working hours on receipt of report or complaint

Planned schedule of maintenance for storm water

SYSTEM CATEGORIES

DESCRIPTION INSPECTION & MAINTENANCE TYPE

FREQUENCY

Manholes A manhole is a structure that allows access into a closed conduit. Manholes can be located in the road-way and greenbelts areas of a development.

Inspect for damage or missing block and mortar

Annually/after heavy rains


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SYSTEM CATEGORIES


FREQUENCY

(Catch-pits) Inspect for debris within the structure (Weekly to respond for hawker management)

Typical cleaning

Problem areas as determined by the Municipality shall be cleaned

Closed Conduit Typical cleaning closed drains and storm-water pipes ranging from 300mm to 1200mm in diameter.

A closed conveyance designed to carry storm water runoff, which includes culvert, closed drains and pipes.

Culvert cleaning Annually & in response to blockages/ after heavy rains

Video inspections (Future capital plans)

Problem areas as determined by the Municipality shall be cleaned

Basin Outlet Structures

Check inlets and outlets for clogging

Outlet structures are used to regulate storm water discharge from detention ponds & basins into receiving waterways or an offsite storm sewer system.

Clean inlets and outlets as necessary.

Annually & when necessary/after heavy rains

Remove sediment if accumulation reaches 1m & above or if re-suspension is observed.

Inspect pipes to verify that the outlet is not damaged.

Catch Basins or concrete & stone-pitching channel (inlets)

A below ground structure designed to collect and convey water into the storm-water system.

Surfaces of all catch basins shall be checked for debris.

Annually

Catch basins can be located in roadways and greenbelt areas of a development.

Typical cleaning. 3 to 5 years

The municipality will monitor completed developments for one year to determine how often the catch basin will require cleaning.

Annually


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SYSTEM CATEGORIES


FREQUENCY

Inspect for damaged or missing block and mortar.

Gutters & kerbing Are located in paved/surfaced roadways to convey storm-water into manholes, catch basins & other associated inlets.

Inspections for debris, sand, leaves and any other sediment types.

In conjunction with Roads Maintenance Programme or other

When required/Annually

Street and kerbing sweeping

Replacement of damaged sections and kerbing.


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5.4 Transport

Transport plays a critical role in economic development. Transport service in our context has two levels. It includes public and physical transportation systems. Our role in transport is largely focused on planning for movement of goods and people across our landscape. We are not a transport authority and currently do not have a transport plan.

However, it is our intention to develop and adopt such a sector plan in order to guide how we intervene and play our role in facilitating public transport, mobilization of transportation infrastructure support and coordination of movement patterns in support of our economic development objectives. This will prepare us to play a critical coordinating role in the planned developments by South African Railway Services (improvements of the rail line connecting Maclear–Elliot to South Drakensburg and Karoo areas) and other similar initiatives.

Our physical transportation systems are poorly linked and overly rely on road based network. The lack of established rail system linkages is a huge obstacle to realizing the existing potential in underperforming yet promising economic sectors like tourism, forestry, manufacturing and agriculture production. The lack of established rail transport network coupled with poorly maintained road infrastructure contributes negatively to our competitive advantage. It makes it difficult for our industries to have effective distribution networks necessary to link out local produce to markets.

In order to ensure transport integration Sakhisizwe LM will cooperate and work closely with the district and other relevant government organs to ensure implementation of an Integrated Transport Plan. However, the process will be led by the district and other authority agencies.

Therefore, Sakhisizwe shall not lead but participate in existing institutional arrangements such as Transport Forums and other associated structures aimed at facilitating integrated transport services.

Public transport is an integral part of our transportation services. The main challenge for Sakhisizwe is lack of provision for adequate and well-designed public

transport facilities (Bus & Taxi ranks with proper toilets and refuse facilities, roadside passenger shelters etc).

Sakhisizwe Public transport system is currently uncoordinated and poorly planned. For example, there is no functional public transport interchange that offers well designed and planned public facilities. Our ranks do not have functional ablution facilities and lack integration in the way they function as a public space. We plan to invest and lobby other relevant department to assist with development and establishment of our public transport capacity in the form of passenger waiting (bus shelters) infrastructure and ranks in especially Cala, Elliot and Lower Lafuta nodal areas

There is a need to consolidate and construct proper facilities in both our main urban centres to accommodate the fast growing number of taxis and public transport operations. This however, needs to be done as collaboration with private operator organizations so as to minimise tensions and confrontational outcomes.

Sakhisizwe LM also operates a licensing and testing station in Elliot. The testing station services the broader Sakhisizwe areas and also serves as a potential revenue raising facility.

There is a landing strip in Elliot which is currently under-utilised and not properly managed either. This facility is a potential source of revenue. Since the municipality does not have relevant aviation skills or capacity to operate this facility, it is suggested that Sakhisizwe council considers offering the facility to a private investor through a service level agreement for its operations and maintenance.

Sakhisizwe LM currently participates in local transport forums and will continue with these engagements to ensure improved public transport services in all our areas.

5.5 Public Amenities & Community Facilities

Sakhisizwe municipality is responsible for provision, management and maintenance of public amenities and community facilities that are in its custody and within its jurisdictional areas.


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These amenities are means by which the local government is advancing service delivery and social cohesion.

The biggest challenge facing the municipality with regards to sports and recreational facilities is lack of adequate funding for provision and maintenance. The planned infrastructure master plan mentioned earlier will also cater for a framework for the provision and future maintenance mechanisms for public amenities and recreational facilities as well.

Sports Fields: The main challenge is that existing facilities are poorly planned and do not respond appropriately to the needs of target user communities. For example, facilities are few in number, cater for only

few sporting codes and not multi-functional in their design. Due to this situation existing ports facilities in Sakhisizwe wards are multi-functional and this is compounded by the fact that limited fund availability makes it difficult for the municipality to maintain them regularly.

The responsibility for provision and maintenance of sporting facilities is shared between SLM and DSRAC. However, the lack of a SLA makes it difficult to hold each partner accountable to their responsibilities.

The table below summarizes the

community needs as identified in the ward

based planning process for sports and

recreational facilities by ward.

Sports and Recreation:

Ward 1

Ward 2

Ward 3

Ward 4

Ward 5

Ward 6

Ward 7

Ward 8

Ward 9

Soccer / Cricket Field combined and park for youth/kids

1 1 1 2 1 1 1 1 1

Multi-purpose central sporting facility consisting of 2 sports fields for soccer/rugby, cricket, x2 tennis courts, athletics and netball court and a clubhouse/change room

0 0 0 1 0 0 0 0 0

The plans for the following year will focus on lobbying for funds to improve maintenance while targeting strategically located sporting facilities in Cala and Elliot to be upgraded into multi-purpose sporting facilities.

The following table provides a synopsis of issues relating to sporting facilities in the SLM areas.


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Sporting Code Formal League / Teams Management

Body in Place

Facilities Issues

Soccer Yes. Only armature levels /3

teams

Yes. Launched

in Feb 2011

Cala & Elliot

towns

Lack of

tournaments &

proper facilities

Rugby No. No. None No formal

structure

Cricket /

Swimming /

Netball / Tennis

Some schools have active

pupils in these codes

No None No organized

structure

Swimming No. No. Private

swimming

pools in Elliot

No organized

structure

Gym No No Informal

operators in

Cala and Elliott

Need for a

formal gym in

an accessible

area

Athletics

(Running,

Music, Dance,

Acting etc)

Done by schools only None outside of

those working

with DoE

Informal

grounds mostly

linked to

schools

Need to

integrate

schools sports

and community

leagues

Sporting

tournament

Soccer,netball,athletics,boxing Mayoral cup Ward 4

sporting

complex

Parks & Recreational Facilities:

Sakhisizwe owns and operates some few

recreational facilities such as the

Thomson’s Dam in Elliot and others. There

are at least 2 formal parks developed with

public furniture in Cala and Elliot. The main

challenge is that they lack provision and

maintenance of proper toilet and refuse

facilities. There are plans underway to

install these facilities in the next budget

year.

These facilities are earmarked for utilization

in revenue collection through hiring to

private users. There are also long term

plans to develop new facilities in strategic

areas such as the Old Plantation near Cala

town in order to boost Tourism and

revenue.

Cemeteries: The municipality is

responsible for providing professional

cemetery services to all its communities


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including properly planned spaces for

burial, support for paupers, maintenance

and security of public assets linked to

cemetery services.

There is no ward that has no cemetery at all

at the moment; the only challenge is that

existing facilities fall short of required

expectations in terms of quality of service.

This is because most cemteries are in

villages managed by traditional leadership.

Cemeteries managed by us are in ward

1,2,4,5 Ward 4&5 cemeteries are properly

maintained while 1 & 2 are not because

communities do not pay for services For

example some cemeteries are not properly

fenced and this cases stray animals to

roam and destroy valuable assets. Others

are located in areas that have geological

challenges resulting in prevalent dampness

and potential risk to underground water by

contamination. There is also vandalism and

theft of tombstones; as a result we have

started to make provisions for security.

The focus in the coming year for cemetery

services will be on mobilising stakeholder

support for modernization (e.g. introduce

automated register) and funding for

infrastructure improvements (e.g.

Installation of fences, toilets and securing of

land for future cemeteries).

Again, SLM will develop and ensure proper

implementation of a policy to guide pauper

burial support. This will provide council with

a systematic framework for consideration

and responding to requests for burial

support by destitute families.

Pounds & Commonages: Sakhisizwe has

two pounds in Elliot and Cala. These

facilities serve as storages for animals that

are impounded in our areas but currently do

not meet required conditions by SPCA for

the safe keeping of animal stock. There are

also challenges of security due to

compromised fencing which risks the

municipality to potential law suit in case

impounded stock got stolen while on

municipal custody.

The focus for the coming year will be on:

Resource mobilization towards

installation of fencing

Budgeting to procure relevant

medical stock and training of staff

to administer them

Appointment of additional rangers,

pound master at Elliot and

improvement of security in both

pounds.

Community awareness to promote

branding of animals for ease of

identification

Lobby for resources to build animal

shelters

Community Halls: SLM has a

responsibility to ensure provision and

maintenance of reliable and accessible

places of gathering and meetings for

communities. During the current term at

least the municipality was able to construct

no less than 8 community multi-purpose

halls between 2011/12 to end 2013/14

using resources from MIG and other

contributors...

The main challenges facing the municipality

with regards to smooth provision of

community halls is lack of funds to do

proper planning, provide security and


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constantly maintain existing facilities. We

depend on the ring-fenced maintenance

budget for the entire municipality to

undertake necessary maintenance of halls

and this is often too little and overstretched

by other demands.

The planned master plan for infrastructure

provision and maintenance mentioned

earlier will also cater for the framework to

maintain and continually provide community

halls. We are also considering different

models for the sustainable management,

maintenance and continuous provision of

community halls to all our wards.

Libraries and Museums: There are three

main libraries located in Elliot and Cala and

a modula library in Askeaton to service

greater Sakhisizwe areas. The new Elliot

Library project is underway and we are in

negotiation with DSRAC for its speedy

delivery and operation...

We do not have established museums in

our municipality but we are investigating

mechanisms for possibilities linked to our

historic and cultural heritage.

The main challenges for the library services

can be summarised as follows:

Lack of a comprehensive library

management and maintenance

plan

Stock in Elliot and Cala libraries is

outdated so we need to source new

material

There are functional and effective

stakeholder partnerships for the betterment

and funding of libraries in our areas.

.


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Traffic & Safety: SLM currently provides traffic safety services including the operation of a licensing and testing station in Elliot. An analysis of access to police stations was undertaken as part of our SDF process and it shows that more than 90% of the population is within a 30 minute drive from a police station. The most inaccessible areas coincide with the most sparsely populated areas. The table below gives a comparison of access to a police station by local population.

Time Population %

0-5 Minutes 25252 37%

5 – 10 minutes 8083 12%

10 - 30 Minutes 28284 42%

30 - 60 Minutes 4593 7%

1 Hour + 1217 2%

Grand Total 67433 100.0% The municipality is interested in crime prevention and promotion of safety even though this function is led by the justice cluster (SAPS, Departments of Justice, Correctional Services and Community Safety in the Province). SLM participates in existing structures like policing forums and street committees with a view to curbing prevalent crimes. Crime is a problem for local government because if it is unmanaged it can get out of control and impact negatively on economic and social development. According to information provided by local police stations in our municipality, the following crimes are common:

Drug abuse (mainly alcohol & dagga)

Gangsters in especially parts of Cala town and Elliot old location

Assaults – linked to alcohol and drug abuse

Rape - linked to alcohol and drug abuse

Theft –of especially burglary types, animal and snatching of small potable items on unsuspecting victims

In terms of institutional responses to crime prevention, police forums exist in certain wards like 1, 2,3,4,5 and 9 but are often dysfunctional and ill-equipped with regards to support. Street committees only exist in concept but have not managed to affect a practical impact in their work or visibility. Therefore, more work is essential in this area of our crime combating strategies and

programmes. Health Promotion & Facilities: Primary Health (hospitals and clinics) is a core competence of provincial sphere of government. Local municipality only plays a facilitative role in the delivery of these services working closely with the district health offices.

The district health office indicated the following areas as primary priorities for the next 3 years in the department.

A. PRIMARY HEALTH CARE (PHC)

RE-ENGINEERING

Strengthening of existing war rooms and establishing the new ones through the help of the political will.

Continue with door to door

campaigns.

Improve transport for these

outreach services.

Consider integration of Community

Health Workers for PHC Re-

engineering. This is a readiness

program for implementation of

National Health Insurance (NHI).

B. NON-COMMUNICABLE

DISEASES (NCD).

NCD has been lifted up as a priority

problem as it is a silent killer in

most of the time.

TB AND HIV/AIDS (HAST)

Mother and child, Women’s’ Health

(MCWH)

Health Promotion

C. National Core Standards- Six key

priority areas

Managers are expected ensure that

they are compliant with the six key

priority areas. These 6 key priority

areas should be fast tracked as

they are the subsets of the most

critical HEALTH standards:

Values and attitudes of staff

Cleanliness

Waiting times

Patient safety and security

Infection prevention and control

Availability of basic medicines and

supplies


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In fact, the municipality is now in the process of handing over all facilities and operational responsibilities for health facilities to relevant spheres who are authorities.

Budget allocation for Sakhisizwe Sub-District is R6 million. This budget includes medicines, transport, telephone, equipment and security services. These are all cost drivers

Sakhisizwe Sub-District consists of 14 clinics, 2 mobiles, and 2 District hospitals (Elliot and Cala). It has a population of.54 029 it is rural in nature, mountainous and scattered at the Cala side. Elliot side is peri-urban with lot of farms. Eleven clinics are permanently built and three are ordinary houses and such are not compliant with the National Core Standards. However, there is a need for at least one of them to be upgraded to a complete standard clinic structure. The three clinics are the recently moved to provincial government from Local Municipality

Sakhisizwe has a ratio of one clinic per 6

752 people. According to national norms

of one clinic per 10 000 people 2,

Sakhisizwe has more clinics than

recommended. However, the rural

distribution of the population and the

spread of health facilities throughout the

area to meet the needs of these

communities could justify this situation.

It should, however, be noted that whilst

the above health facilities might well exist

throughout the Sakhisizwe Municipality, it

needs to be borne in mind that the

infrastructure serving the facilities (water,

sanitation, electricity, security, equipment

and human resources etc.) is very often

well below optimum. According to the

findings published in the Eastern Cape

Department of Health's Strategic Position

Statement3 27.5% of clinics in the

Eastern Cape do not have water-borne

toilets, 39% do not have access to safe

water and 18% do not have electricity.

The district officials in Cala and Elliot report

that often clinics lack adequate supplies of

essentials like medicine and working

equipment.

According to the district health office in Cala the prevailing diseases in the Sakhisizwe areas are TB, HIV/AIDS, Diabetes, Hypertension and Asthma. The high levels of poverty in the Municipality place pressure on the current health facilities. There is a strong correlation between poverty and disease such as TB, malnutrition, pneumonia, diarrhea, gastrointestinal etc.

It is also important to note that HIV/Aids will put more pressure and demand on health and social services. The National Antenatal HIV Survey 4 reported that; in 1999, 450 000 people in the Eastern Cape Province were infected with HIV. It when on to state that it projects that 160 000 people would have died of AIDS in the province by the year 2009. This will place even further pressure on the present medical facilities.

In an attempt to curb the spread of HIV/Aids and other communicable diseases like TB (tuberculosis) and cholera SLM has developed a strategy to guide its interventions.

The representative forums held for IDP formulation in Cala and Elliot highlighted the following issues as important when considering solutions to the challenges facing the delivery of primary health services includes:

Accessibility: while facilities exist they are located far from their threshold service areas and people in rural areas need to travel far. The suggested intermediary service through mobile clinics was received by the district health office as a welcome idea for consideration in mitigating accessibility of primary health care services. An assessment of accessibility of health facilities reveal that 68% of the population is within 60 minutes from health facilities. The table below gives a distribution of population by amount of time it takes to reach or access a health facility.


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Population %

5 km (30 Minutes) 23769 35%

10 km (1 Hour) 22271 33%

15 km (1 Hr 30 Min) 8082 12%

More than 90 min 13311 20%

67433 100%

Current plan of action for the district health office

No. Activity Responsibility Budget Comments 1. Official opening of Mhlwazi clinic

in 2015 DoH (plaque, curtains) Community

participation Equipment already available

2. Establishment of additional war rooms in 2014/15 financial year

MCWH All the sector departments /ward committees ,and councilors

3. Drug Management (implementation of demander codes by all facilities) by 2014/15

Clinic Supervisors With demander codes facilities are going to get medicines straight from depots

4. Outreach Services Appointed retired Professional nurse

RPHC in progress and other programs

5. Appointments of Programme Managers (Nutrition, Rehab, NCD, HIV/AIDS)

DoH Processes of appointment in progress

6. Renovations in both hospitals Infrastructure Still in progress

7. Replacements of Lay Counsellors

DoH (Province) To be done in 2014

8. Circumcision vehicles DoH The Sub-District dedicate vehicle from the pool vehicles during circumcision period Dedicated medical officers

9. Blind Spot during festive season All Programme Managers

For accessing the travelers to health services as near as possible. To provide HCT to all the people at the sport

10. Training of appointed Lay Counsellors

HIV/AIDS CCMT Manager

To provide them with Counselling Skills and knowledge

11. Election of new clinic committee members and review Health forum and organise training

Clinic Supervisors Term of office of present committees has expired

12. Accreditation of Cala nursing college (1 year programme)

Lilitha Nursing college

13. The community of Sakhisizwe identified the need to have Private nursing school in their area as they felt that the capacity at Lilitha is very much in adequate .There are only 28 posts for ENAs to cover the entire Chris Hani. This arrangement will assist those

DoH,LM The community approached the LSA to assist them in the motivation requesting approval to utilise the government facilities for training of Private nursing students


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who are able to pay for their kids. The entire community is highly interested on this program. They made a verbal request to MEC for Health and he has requested them to submit proof of a registered nursing school from SANC(SOUTH AFRICAN NURSING COUNCIL)

14. Mobile vehicle are very old and there is a need for new dedicated vehicle suitable for our rural roads Car subsidies for managers and field workers in order to improve service delivery

DOH DHS to allocate funds and purchase new cars

Deteriorating infrastructure: existing hospitals and clinics are often poorly maintained and planned upgrades take long to be implemented leading to gradual decay of already existing facilities. This was attributed to lack of funds and limited budgets allocated to the district office for infrastructure upgrades.

HIV and Aids prevalence: the fight against the spread of HIV and increase of infections and eventual Aids pandemic has been identified as a key priority outcome of the municipality. The municipality working closely with the local Aids Council and other partners will continue to conduct awareness campaigns and facilitate smooth implementation of agreed health promotion programmes.

Lack of doctors and specialist practitioners visiting clinics: most participants in the community engagement processes mentioned that available consulting doctors were too few to cover the existing demand in all our local clinics and this tend to cause people to want to flock into hospitals only to be sent back to their clinics

Attitudes and poor communication: nursing staff in certain clinics were accused of holding unprofessional attitude when dealing with patients and often fail to communicate properly the department’s policy (e.g. Transfer to a hospital) to their

patients. Thus causing confusion and misunderstandings which could be prevented.

Public or municipal health is a core competence of the district municipality. In this area the DM has employed its own staff and allocated them by local municipal areas to deal with issues of water sample testing, inspections of food selling outlets, monitoring of outbreak of communicable diseases and general public health

education campaigns.

Disaster Management: Disaster management services include a range of tasks such as fire fighting, disaster relief, emergency services and related operations.

The disaster management is normally a district function and therefore Chris Hani DM is responsible for budgeting, developing policy and disaster management plan which must inform and be informed by contributions of its LMs including SLM. Our role in this function is largely to facilitate implementation of such a plan.

Our district has developed and adopted a disaster management plan. We are in the process of customising it for implementation in our SLM areas.

Our focus for the next coming year will be on lobbying for better resources and decentralisation of services (e.g. Establishment of a local disaster centre with firefighting equipment) and capacitation of our local ward level structures with training and basic operational equipment.

In order to guide our planning for prevention and mitigation of risks associated with potential disasters, our SDF provides a


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basic framework for identifying critical risk and vulnerability areas of community.

The funding for policing and monitoring of those risk factors is expected to come from the district and Province. We plan to cooperate with other spheres of government in implementing the adopted CHDM Disaster Management plan in all our areas. The implementation will relate to effective provision and execution of tasks such as:

appointment of firelighters and deployment of dedicated disaster management staff to our areas

funding of operations and continuous capacity building activities like training and awareness campaigns

installation of local (SLM) disaster centre

Collaboration on planning and coordination of disaster relief programmes

Other emergency response activities

Education and Early Childhood development: The role of providing and ensuring quality of education services remains the primary competence of the national department of education. Local government municipalities are however required to play a critical role in facilitating early childhood development (crèches) and adult education (Abet) support programmes.

Education is a central service to economic development and without the production of essential skills, there may be limitations in realizing the benefits of our economic opportunities. Plans are advanced to lobby relevant authorities for the establishment of a training and skills centre or FET in Cala. It is intended that this facility once in full functional status, will empower our local economy with relevant trades and entrepreneurial skills.

The trends for educational enrolments and numbers of teachers in our schools have been gradually reducing instead of growing. It is necessary to undertake detailed investigations into the reasons for this downward trend as it poses a danger to the stability of education services.

Total Learners

2010 2011 2012

19,906 18,738 18,284

Total Educators

2010 2011 2012

745 724 686

The table above uses statistics from the Global Insight 2012 to reflect on trends for leaner enrolments and teacher availability in our local schools.

An assessment of the recent national statistics report issued in 2012 reflects that the numbers of people without any schooling has been gradually decreasing in our municipality.

The figures below use recent national statistics (StatsSA 2011) to highlight the prevailing levels of educational achievement among SLM people.


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The recent ward based participatory planning process identified the following

issues and infrastructures for education in the Sakhisizwe LM.

Education: Ward 1 Ward 2 Ward 3 Ward 4 Ward 5 Ward 6 Ward 7 Ward 8 Ward 9 Total

Persons with no education

664 967 700 206 699 275 467 393 438

4,809

Facility to educate persons with no education

1 1 1 1 1 1 1 1 1 9

No of classrooms for new facility

22 32 23 7 23 9 16 13 15

160

Maintenance of existing schools

yes yes yes yes yes yes yes yes yes -

ECD (Grade R) 7 6 14 7 7 8 7 6 6

68

GET (Grade 1-7) 0 0 0 0 0 0 0 0 0 -

Secondary 0 1 1 1 1 1 0 1 0 6

Special Schools 1 0 0 1 0 0 0 0 0 2

FET Campus (to be based in Cala)

0 0 0 1 0 0 0 0 0 1

FET College 0 0 0 0 0 0 0 0 0 -

University 0 0 0 0 0 0 0 0 0 -

Nursing college (to be based in Cala)

0 0 0 1 0 0 0 0 0 1

Other challenges relating to education in SLM

Lack of vocational skills training institutions


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Inadequate equipment (laboratories) in local schools to enable effective learning for science and research

Declining quality and standards of outputs in terms of grades and achievement for matric passes among our local high schools

Poor planning integration by the departments of Education, Eskom and District for provision of infrastructure support services like electricity, water and refuse to schools

5.6 Free Basic Services

The South African government is party to international treaties that promote access by all citizens to a basic level of services irrespective of income or poverty level. In pursuing this goal, Sakhisizwe LM developed and adopted its Free Basic Services policy (also known as Indigent Policy) in May 2013 to give framework to a subsidy arrangement that must allow constant provision of basic services to all households including those who cannot afford (charged tariffs for services).

The policy is compliant with National legislation and policy framework and will only be revised each year to the extent that circumstances of beneficiaries changed. The policy is detailed here below:

SAKHISIZWE FREE BASIC SERVICES & INDIGENT

SUPPORT POLICY TABLE OF CONTENTS Preamble 3-4 Section 1: Qualification Criteria 4-5 Section 2: Criteria for Acceptance 5-7 Section 3: Registration Procedure – New and Reviewed Applications 7-8 Section 4: Subsidy 8-10 Section 5: Budgeting for Indigent Support 10 Section 6: Review and Amendment of Policy 10 Section 7: Communication Strategy and Skills Development 10 APPEAL 10-11 PREAMBLE WHEREAS National Government has a

constitutional duty to provide an equitable share of nationally raised revenue to municipalities.

AND WHEREAS the aforesaid equitable share

enables municipalities to provide basic services to poorer communities in an affordable manner and administrative capacity to ensure democratic governance at the local level. AND WHEREAS Section 74 of the Local

Government: Municipal Systems Act 2000 requires a Municipal Council to adopt and implement a Tariff Policy which must, inter alia, take into consideration the extent of subsidization of tariffs for poor households. The Council of Sakhisizwe adopts the under-mentioned policy, which shall be known as its Indigent and Free Basic Services Support Policy, the object of which shall be as follows: [a] The provision of basic services to the

community in a sustainable manner within the financial and administrative capacity of the Council; and [b] The provision of procedures and guidelines

for the subsidization of basic service charges to indigent households. For purposes of this policy: “Council” means the Council of the Municipality

of Sakhisizwe or any duly authorized Committee or official of the said Council; “Gender” any reference to the one gender shall

include reference to the other “Household Income” means all sources of

income being formal and/ or informal of nature including, but not restricted to, salaries, revenue generated, pensions, fixed deposits, investments, state subsidies and or grants, private financial support/contributions from outside the indigent household “Indigent” means an indigent household whose

total household income does not exceed the threshold determined by National Treasury annually during the budget process. “Indigent debtor” means the head of an

indigent household, inclusive of destitute indigents and indigents, being old age pensioners, the unemployed and households with a total monthly income as determined in this policy: [a] who applies for the provision of services from

the municipality; and [b] who makes application for indigent support in

terms of this Policy; [c] who shall be regarded as the representative

of all members of his/her household. [d] which indigent household members shall not

own any other fixed property other than the property for which the application is made, or hold fixed deposits and investments “Indigent Households” shall include all

individuals residing at the residential premises of the indigent debtor, inclusive of destitute indigents and indigents, by whom and for which application is made, which premises has access to municipal services. “Indigent and Free Basic Services Subsidy Policy” means the policy for the provision of

indigent support subsidies to qualifying indigent debtors in terms of the Council’s policy relating to the following:


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[a] as determined by Council annually during the

budget process, in line with National norms and guidelines. “Municipality” means the Municipality of

Sakhisizwe, a local municipality established in terms of Section 12 of the Local Government: Municipal Structures Act 1998; “Municipal Manager” means the Municipal

Manager of the Sakhisizwe Municipality or his/her nominee acting in terms of power delegated to him/her by the said Municipal Manager with the concurrence of the Council. “Poverty” is defined with reference to a poverty

line i.e. if a household earns gross income lower than a set amount that household and its members are deemed to be living in poverty. ‘‘Vote’’ means:

(a) one of the main segments into which a budget of a municipality is divided for the appropriation of money for the different departments or functional areas of the municipality; and (b) which specifies the total amount that is appropriated for the purposes of the department or functional area concerned. Section 1: Qualification Criteria

An indigent debtor shall qualify for consideration of indigent benefits in terms of the laid down procedures of Council [1.1] A debtor will be considered: (a) an indigent if his/her total household income

does not exceed the threshold determined by National Treasury annually during the budget process. The guideline relating to the household threshold is an income of not more than two state pensions per month. [1.2] For the purpose of determining the total

household income of all applicants, the combined or joint gross income of all occupants/residents/dependents in such household shall be taken into account. [1.3] Applicants and/or any

occupant/resident/dependent of the debtor’s household shall not own any fixed property in addition to the property in respect of which indigent support is required from the Council in terms of this Policy. [1.4] Applicants shall be:

(a) Citizens of the Republic of South Africa in possession of a valid South African Identity Document. (b) Resident at the premises for which application is made within Sakhisizwe Municipality. (c) In possession of a service agreement with Sakhisizwe Municipality in the name of the indigent debtor. [1.5] Proof of income: Applicants for indigent

support must produce written proof acceptable to the Council of: (a) household income/grants for each member of the household; (b) employment status or low income or reduction in income of each member of the household;

(c) inability to work of each member of the household. (d) all minor members of the household The above documentation should be current, i.e. not more than one month old, and should be submitted with the application form. [1.6] An indigent would qualify for subsidy on

one household (property) only. Section 2: Criteria for Acceptance

An indigent debtor shall apply for indigent benefits on the prescribed application form and in terms of the laid down procedures of Council. [2.1] The applicant shall agree to the following:

(a) To appear personally before the designated official with the application form and documentation required for verification purposes. (b) To the installation of a prepaid electricity meter by Council which costs Council may recover by applying the applicable prepaid tariff. (c) To the installation of a water flow restrictor meter by Council. (d) To the valuation by the Municipal Valuer of the residential property for which application is made (applicable if applicant is owner) (e) Annual resubmission by the applicant of the application to Council on the anniversary of the granting thereof and/or on a date determined by Council and communicated to the applicant. Failure to comply herewith shall result in the debtor’s indigent status being revoked. (f) That the onus shall be on the approved indigent debtor to inform the Council of any change in his status or personal household circumstances. [2.2] Council shall have the right to:

(a) Verify the details provided by an applicant for indigent support; (b) Undertake house visits by Councilors, Ward Representatives, Council staff or Council’s

accredited agents to confirm the indigent’s claim and living conditions. (c) Where an indigent debtor is found to be living at a standard inconsistent with his indigent application or fails to allow access or provide any further information as may be required by the Council, such debtor’s indigent benefits may be cancelled at Council’s sole discretion retrospective to the date of approval. (d) Re-evaluate all indigent households after a period of six months or such period as the Council may determine to enable the Council to assess the provision of continued basic services and indigent support to them. (e) For the purposes of transparency the Council, shall cause to be kept a register of all indigent households at Office of the Council containing: (i) The names of indigent debtors receiving indigent relief for a prescribed period; (ii) The erf or stand numbers where services are rendered to recipient indigent debtors; (iii) The total household income of recipient indigent debtors; and (iv) The number of dependents residing on the property of the recipient indigent debtor; for the


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perusal by Councilors, Ward Committees and officials. (f) Any resident, Councilor, Ward Committee member or official may, in writing, addressed to the Municipal Manager, query the qualification of a recipient indigent debtor within 21 days from the date of tabling at the Council meeting of the report as stipulated in section 3.3. (g) The Municipal Manager shall refer queries referred to in (f) above to the relevant official for Indigent Support who may take one or more of the following actions: (i) Request the indigent debtor against whom a query has been raised to provide full proof of his/her banking account and income details as well as pension registration number; (ii) Undertake an inspection at the indigent debtor’s place of residence to determine his/her social conditions; (iii) Request a social welfare worker’s report on the indigent debtor’s household; and (h) where after the official shall recommend to the Municipal Manager for submission to Council such action as he may deem appropriate in the circumstances including a recommendation to the Council - (i) that the indigent status of the debtor be suspended for a defined period and subject to such conditions as it may determine; (ii) that irregular or excess payments of indigent subsidies be recovered from the indigent debtor by way of debiting such indigent debtor’s services account or accounts with such payments; (iii) that normal credit control measures be applied to the indigent debtor in accordance with the Council’s Credit Control Policy; and (iv) that criminal charges of theft or fraud be instituted against the indigent debtor. (i) The Municipal Manager must, in writing, advises a complainant who lodges a query against an indigent debtor in terms of (h) above of this Policy of the result of the investigation. (j) The indigent status of a debtor cannot be withdrawn, suspended or altered until and unless such debtor has been given an opportunity to be heard and make representations on the allegations against him or her. Section 3: Registration Procedure – New and Reviewed Applications [3.1] A debtor should make application for

indigent benefits at the nearest Municipal office on a prescribed application form. [3.2] The application process shall be as follows:

(a) The application form shall be completed by the Municipal Official and the applicant (b) The completed application form will be printed and signed by the applicant before the Municipal Official. (c) All required documentation must be submitted simultaneously with completion and signature of application. (i) Original Identity Document of all occupants/residents/dependents of indigent household to be produced and copied

(ii) Original Municipal account (iii) Proof of income/grants of all occupants/residents/dependents of indigent household. (iv) Proof of employment status or low income or reduction in income of any member of the household; (v) Proof of inability to work of any member of the household. [3.3] The application and all supporting

documents would then be submitted to the relevant ward councilor for endorsement and approval. The applicant will then be treated as an Indigence consumer. [3.4] A quarterly-consolidated report must be

submitted, per ward to the Executive Committee and each Council meeting of: (a) Applications received (b) Applications approved (c) Applications declined (d) Indigent defaulters An annual renewal notification in terms of Council’s laid down timetable, shall be processed by the municipality. Section 4: Subsidy

Council shall annually, determine the overall subsidy for indigent and other debtors within Council’s budget process and financial constraints [4.1] Indigent subsidies may be granted on:

rates, water, sewerage, refuse removal, electricity and arrears on any of the above services. [4.2] All registered indigent households will, on

approval, be designated as: · indigent and shall be charged the determined economical tariff or charge for a service applicable to their designation. [4.3] The indigent households monthly account

will be credited with the amount of the indigent subsidy as determined by the Council budget according to their designation. [4.4] Subsidy allocations

An indigent household shall qualify to receive subsidized services on the following terms and conditions: 4.4.1 Property Rates (a) All owners of residential properties or properties used for multiple purposes, provided one or more components of the property are used for residential purposes would receive a reduction on the ratable value of the property (currently R15 000) as provided for in section

17 (1)(h) of the Property Rates Act No. 6 of 2004. (b) An indigent who resides in a property which value exceeds the exemption amount as provided for in the Property Rates Act as designated from time to time shall be subsidized for property rates in full. 4.4.2 Water (a) All metered domestic consumers shall receive the allocated 6kl free water as determined by National Government.


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(b) If the water supply was disconnected prior to the debtor applying for indigent support the water reconnection would be made free of charge. (c) The basic and availability charge for metered and un-metered indigence consumers as determined annually by Council shall be subsidized in full. 4.4.3 Electricity (a) Shall, on approval of his application for indigent support, be transferred to a prepaid energy dispenser. (b) All indigence consumers shall receive the allocated 50KwH Free Basic Electricity as determined by National Government. The availability charge for metered and un-metered indigence consumers as determined annually by Council shall be subsidized in full. (c) Free Basic Electricity shall be dispensed as determined by Council where Council is the service provider. (d) Free Basic Electricity shall be dispensed as determined by Council and ESCOM, where Council is not the service provider. (e) Shall not carry over, from one month to another, the Free Basic Electricity subsidy or any portion thereof allocated which is not claimed. Free Basic Electricity subsidy not claimed, in any calendar month, will be forfeited. (f) Subsidies shall be withdrawn following disconnection from the electricity supplier due to non-payment of service account and or meter tampering until such time as the requirements have been met as described in Council’s Credit Control and Debt Collection Policy. 4.4.4 Basic Energy Indigent households in informal/formal settlements where limited or no electricity is available, may be provided with alternative energy source that is 25 litres of paraffin for every 2 (two) months, free of charge. This will be done through Sakhisizwe Municipal service providers. 4.4.5 Sewerage (a) Indigence consumers shall be subsidised in full for sewerage levies as determined annually by Council. 4.4.6 Refuse Removal (a) Indigence consumers shall be subsidised in full for refuse removal levies as determined annually by Council. 4.4.7 Arrears (a) Once classified indigent all arrears that such an indigence consumer might have on his / her consumer account in respect of any service above would be subsidized in full. Section 5: Budgeting for Indigent Support

The Council must annually budget for the total indigent subsidy to be granted to indigent debtors in terms of this Policy. Such amount must, upon approval of the budget of the Council, be reflected against a separate vote in the name of indigent subsidy. The total value of indigent subsidies for all subsidized services must be reflected against such indigent subsidy vote on a monthly basis.

Section 6: Review and Amendment of Policy

The Council has the discretionary power to amend any clause, stipulation or tariff embodied in this Policy in the interests of all the parties concerned at the annual budgetary review of Council policies in conjunction with the consideration of the annual budget of the Council. Section 7: Communication Strategy and Skills Development

(a) The Council shall, with the aid of Ward Committees, embark on an extensive community communications programme aimed at informing communities of the contents of this policy and the duty on them to pay service charges and contribute to the funds of the Municipality; (b) The Council should endeavour to support and, within its capacity, access skills training and other education related programmes aimed at developing the indigent to become self - sufficient and thereby reducing the rate of indigence. APPEAL

(a) An indigent household application, which has been declined, may appeal against such decision. (b) The appeal must be in writing and lodged with the Municipal Manager within 14 days after receipt of the notification setting out: (i) The reason for the appeal (ii) Any other documentary proof in support of the appeal. (c) The appeal shall be decided: - (i) within 21 days after lodgement of the appeal (ii) strictly in terms of the provisions of the bylaw and this policy (iii) by three officials from Finance designated by the Municipal Manager. (d) The decision of the committee is final and the appellant shall be notified of the outcome in writing. Offences

As determined by the Indigent and Free Basic Services Support By-Law: - Any applicant who misuses the indigent support policy of the Council or provides incorrect information to the Municipality and or tampers with the supply of services or municipal installations shall be subject to forfeiture of indigent status, criminal prosecution and other measures as determined by the Council within the Credit and Debt Collection Policy. Notices and Documents

A notice or document issued by the Council in terms of these by-laws shall be deemed to be duly issued if signed by an employee duly authorized by the Council. If a notice is to be served on a person in terms of these by-laws, such service shall be effected by: [a] Delivering the notice to him personally


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[b] By delivering the notice at his residence or to

a person apparently not less than sixteen years of age and apparently residing or employed there; [c] If he has nominated an address for legal

purposes, by delivering the notice to such an address; or [d] By registered or certified post addressed to

his last known address. [e] If service cannot be effected in terms of the

aforesaid sub-sections by affixing it to the principal door of entry to the premises, or displaying it on a conspicuous place on the land As reviewed and ADOPTED BY COUNCIL: 28 May 2015.

5.7 Energy & Electricity

Alternative Energy: The supply and demand management of energy is critical to sustainable development. Sakhisizwe council subscribes to sustainable development principles and promotes exploration and utilisation of alternative sustainable energy solutions.

We are in the process of exploring various alternatives for energy including projects on solar power (for geysers, street lighting and other uses), Wind propelled energy and others. These explorations will overtime assist the municipal economy to reduce it’s over reliance on energy sources that deplete our environment such as fossil fuels and coal.

Electricity Supply: Electricity is the major source of energy utilised in our municipality. It currently accounts for over 97% of energy utilization.

Eskom is the main provider of electricity in our areas. Sakhisizwe is licensed to supply only in the areas of Elliot town, Hill View Township and Takalani Township. At a recent Strategic Planning session of the municipality held in March 2014, it was recommended that council explore the possibility of negotiating the extension of our license with Eskom to provide in other areas like Cala in near future. It is intended that such a move will stabilise and standardise service quality and reliability across the municipal jurisdictional areas. The move will also ensure future potential increase in our electricity sales revenue.

An analysis of supply and household access to electricity and energy sources was undertaken. StatsSA report of 2012 indicates that by 2011 the majority 79.1% of households in the Sakhisizwe municipality had access to electricity for lighting purposes. The technical services department estimates that only 10% of households do not have access to electricity connection by February 2012.

In addition to the commitment by Eskom to ensure that all areas of Sakhisizwe are electrified by 2014, the following projects for electrification were recently completed.

Elliot bulk electricity network phase 1

Elliot bulk electricity network phase 2

Cala high mast street lighting Takalani township household

connections (440) started in 2011-2012

Extension 14 & 15 household connections

Lower Langanci M-v line networking. started in 2010-2011

Lower Langanci household connections (196) started in 2011-2012

The Need for Electricity: The recent ward based planning assessment of services found that “the municipality is doing rather well on the supply of electricity to the homes. Of the 1536 homes / dwellings, 1292 have access to electricity for lighting. There is an immediate demand for electricity for 289 households and over the next 5 years and additional 239 raising the total planning demand over 5 years to 528 homes. There is also a need for High mast lights to be installed in each settlement to provide street lighting for the community” The following figure gives the distribution of electricity supply and demand (household connections) by ward level. It shows that the majority of households awaiting household connections are concentrated in the wards 1 (24%), 5 (18%) and 3 (15%).


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5.8 Access to land and Human Settlements

Sakhisizwe LM undertook a detailed land

audit in 2010 aimed at establishing

ownership patterns and guiding strategies to

curb and control land invasion.

The land audit report was used to inform the

formulation of our spatial development

framework. In terms of the land audit and

recent consultations during the IDP review

formulation, Sakhisizwe LM has no

outstanding land claims.

However, with the parliamentary decision to

reopen land claims for those individuals who

could not submit by the last national deadline

of 1998, it is unknown yet how many claim

will emerge and how these will impact on

local economy and land availability.

Land degradation is a common feature in

the rural parts of the Eastern Cape and

especially the former Transkei areas. This is

caused partly by:

Flooding due to heavy terrestrial

rains which tend to erode the fertile

top soils

Poor land care practices among

those who work the land

Land invasion and negative

sprawling into productive agricultural

lands

Climate change related factors

As part of current efforts to curb land

degradation, the municipality is planning to

work closely with the district and the

department of Agriculture to lobby resources

for implementation of a land care programme

focused on targeted interventions to curb

problems of soil erosion, sprawling of

informal settlements into productive

agricultural lands and capacity building of

local producers (land users) to sustain or

prevent loss of fertility in our arable lands.

Settlement typologies: Apart from small

pockets of privately owned land in the Cala

and Elliot towns of the municipality, the

largest parts of the municipal area consists

of lesser forms of tenure on communal -

state owned land. These forms of tenure

include PTO’s and Quitrent (often in

overlapping allocations). The northern

(former RSA) component of the Municipality

consists of privately owned farms and

erven. Prevalent settlement typologies are

briefly discussed below.

Scattered low-density rural residential

settlements: these settlements are loosely

scattered throughout the southern municipal

area and are surrounded by communal

grazing land, and in some instances - arable


IDP REVIEW 50/213

lands. The structure of most of these

settlements clearly reflects a distinction

between residential and arable 1 grazing

uses. In a number of settlements where land

use rights were in the past issued in terms of

the quitrent system, these ownership and

use-rights are still acknowledged and

respected. The levels of service are generally

low, with the majority of residential structures

being self-built. Apart from a few trading

stores and agricultural activities, there is little

sign of any other economic activity in this

area.

Communal agricultural land: these areas

make up the balance of the former Transkei

part of the Municipality (outside the Cala

Commonage boundary and rural settlement

areas).

Commercial farms make up the rural

component of the former RSA part of the

Municipality (outside the Elliott

Commonage boundary)

Urban settlements are comprised of the

towns of Elliott and Cala. In comparison to

their surrounding hinterland, these towns

have a higher level of social and

infrastructure services and hence fulfill the

role of the main service centers to the

surrounding hinterland.

5.9 Housing delivery

Our municipality is not a housing authority and therefore our role is often limited to administrative support like processing of beneficiary applications for subsidized housing linked to rural development and land reform initiatives. We also play a facilitating role in housing construction

programme of the department of Human Settlements. Sakhisizwe has developed and adopted a Housing sector plan in 2012 (still valid) to guide its interventions and contributions to housing delivery in its areas of jurisdiction. This plan is aligned and implemented together with the provisions of our adopted spatial development framework (SDF).

The SDF proposes that the initially focus should be on densification programmes in Phola Park, Old Location in Elliot, Bathandwa Ndondo, Phakamisa, Manzindaka, and Cala Reserve. In 2013/2014 the department of Human Settlements has budgeted to rehabilitate and rectify about 65 houses as part of its disaster and emergency programme. These programmes were not completed by March 2014 and will continue.

Related bulk service infrastructure delivery linked to the delivery of housing is integrated through collaborative planning into the capital costs of the projects. The municipality has also incorporated aspects of bulk infrastructure linked to these developments in its capital infrastructure plans led by the PMU.

Migration is not a serious factor in housing demand within the Sakhisizwe municipality since very few numbers converge into our areas in search of greener pastures. The majority of people that constitute our housing demand are local inhabitants. There is therefore no need to develop a dedicated migration plan in Sakhisizwe.

The estimated housing backlog in Sakhisizwe is 930 units distributed across the wards as shown in the figure below.


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These units can be further categorised into the following types (internal assessment):

600 low income units (RDP level across SLM)

200 middle to upper income units (primary nodes only)

130 rental stock in nodal areas (Cala, Elliot towns and Lower Lafuta secondary node)

In order to satisfy the current demand the recent report on ward based planning in Sakhisizwe proposes that an estimated 464 hectares may be needed for new development demand.

The table below gives the distribution of housing demand by ward and hectares of land needed to satisfy the demand.

Housing: Ward

1 Ward 2 Ward 3 Ward

4 Ward

5 Ward

6 Ward

7 Ward

8 Ward

9 Total

Land required for new housing (45%) 20.2 12.3 32.6 11.7 17.8 28.2 25.8 29.2 30.9 209

Land required for ancillary land uses (25%) 11.2 6.8 18.1 6.5 9.9 15.7 14.3 16.2 17.2 116

Land required for roads (30%) 13.5 8.2 21.7 7.8 11.9 18.8 17.2 19.5 20.6 139

Total land required in hectares (ha) 1 ha = 10 000 m² 44.84 27.3 72.44 26.09 39.66 62.63 57.3 64.95 68.75 463.94

5.10 Overview of housing projects in Sakhisizwe

The following tables give an overview of existing housing initiatives by the department of Human Settlements within Sakhisizwe areas.

Project Approved scope

Houses completed

Houses outstanding

Approved Budget

Expenditure to date

Comment

HOUSES FOR CONSTRUCTION

Cala Ext 13&14 - 200

200 0 200 R20,822,489 Nil Close out stage

Cala Ext 15 - 161

161 0 161 R19,161,683 Nil Close out

Elliot 800 - 11

11 0 11 R1,502,940 Nil Close out


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Project Approved scope

Houses completed

Houses outstanding

Approved Budget

Expenditure to date

Comment

NEW DEVELOPMENTS & PLANNING

Elliot Old Location

1000 1000 0 1000 R 80,00 R 80,00

Pre planning – Layout

plan outstanding. Presentation

by Gibb

Cala Ward 2 -2693

- 0 - R1,211,777 R 730,33

Two contractors appointed – Turn key bases

Cala Ward 4 - 2662

- 0 - R1,197,826 R 721,92

EMERGENCY/ DISASTER PROJETCS

Emergency 65 0 65 Nil Chris Hani

DM Developer

TRANSFERS

Cala Ext 13&14 - 1545

1545 1523 22 R 695,25 R 675,90 Outstanding

transfers

Cala Ext 15 - 1070

1062 1055 7 R 481,50 R 472,50 Outstanding

transfers

Elliot 800 - 800

800 556 244 R 360,00 R 247,95 Outstanding

transfers

RECTIFICATION

Cala 420 20 0 20 R1 074 000 Construction

Cala 420 (Rectification)

420 0 420 R32,354,070 R 528,70

Contractor appointed, works on progress.

Cala 301 (rectification)

301 301 0 R26,379,426 R21,075,789

Project completed. Infrastructure and beneficiary issue to be attended to.


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Elliot 302 (Rectification)

302 302 0 R22,945,205 R4,669,185

Re- assessment defective units.

DESTITUTES

Cala / Elliot 120 0 120 Nil Contractor

appointed ; I-BUILD

BULK INFRASTRUCTURE

Cala Ext 13,14-15 & Cala 420

3035 - 3035 R58 Million Nil

Finalisation of Service Level Agreement

PROJECT ON CONSTRUCTION

Cala Ext 13&14 –

1545- ( 716) 1545 1485 60 R60,656,424 R50,426,121

Project near completion

Cala Ext 15 – 1070- (249)

1062 970 92 R20,299,983 R14,531,747 Project near completion

Elliot 800 – 800 – (324)

800 719 81 R27,193,404 R22,297,249 Project near completion

EMERGENCY HOUSING PROGRAMME

As part of responding to recent disaster, the department has set aside a budget to reconstruct and provide housing emergency relief to victims in the Chris Hani areas including 65 in Sakhisizwe. The plan is to construct 430 units for the entire Chris Hani Region (8 Municipalities) funded by Human Settlements and COGTA Grant as follows:

65 units have been allocated for Sakhisizwe LM ( inclusive of 26 units funded through

COGTA)

This project is earmarked for the beneficiaries who were affected by disaster and have

already assisted with temporary shelters.

The beneficiaries have to qualify for the Housing Subsidy Scheme.

The Chris Hani DM has currently engaged with the developer Coega.

In the Sakhisizwe LM only … beneficiaries has been approved to date.

Challenge is with beneficiary administration-: Approvals are not forthcoming and the

programme is being affected. Some of beneficiaries that are allocated temporal shelters do not

qualify as they have previously benefited and earn above R 3,500/month


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CHALLENGE/INTERVENTION STATUS

Fast track processes to conclude the documentations to enable the implementation of Bulk infrastructure services and internal services.

Processes of signing the Service Level Agreement between Chris Hani DM & Human Settlements underway. Service Provider to the project to conclude designs for approval.

Delays experienced in Facilitation and processing of transfers

Slow progress on resolving the issues of transfers by appointment of Conveyances to start and finalise the transfer process.

Non availability of beneficiaries to occupy completed houses especially in Cala Ext 15 and that leads to vandalism

Municipality to provide with the house caretakers to safe guard the houses.

Beneficiary list outstanding on project for implementation. 10 approvals on destitute houses.

Working close with Municipality with regard to beneficiary forms and list outstanding

5.11 Agriculture

Sakhisizwe has high potential for agricultural produce but this potential is not yet fully explored. The municipality is also endowed with high fertility lands for crop growing. However, this potential remains unutilised in most parts of the municipality. According to the LED Strategy the municipal agriculture production is characterised by largely small communal farming units that produce specific crops individually and farming outputs and some few commercial farms in especially Elliot areas. During the development of our adopted SDF, a detailed analysis of soils potentials was undertaken and the figures below illustrate where these potentials exist.

. Approximately 40% of land in the Sakhisizwe municipality is arable lands. This land is currently occupied by a range of land uses including:

Communal grazing

Communal subsistence agricultural production which is largely led by individualised small pockets of gardens and ploughing fields. This is more prevalent in the former Transkei areas which remain largely rural and underdeveloped

Commercial farming in especially the northern parts of Elliot

Dispersed forestry activities with minimal commercialization (of largely blue wattle, pine and gum tree species).

Sakhisizwe is also characterised by livestock farming which again is largely communal. The main type of stock that is kept and bred is often goats, sheep and cattle. We have a large stock of goat population estimated by local agricultural


IDP REVIEW 55/213

extension officers at over 24000 while cattle and sheep is estimated to be around 18000 and 21000 respectively. The average annual rainfall for the municipality ranges between 600 – 1000. The combination of the local soil conditions and high rainfall makes the land susceptible to erosion if development and land use activities are not properly managed. The main sources of water for agriculture and other purposes are:

Rivers

Dams

Borehole (underground)

Reticulated grid (mainly for drinking water) linked to reservoirs which are located in various areas of Cala and Elliot.

Agricultural infrastructure is predominantly lacking in many areas of the municipality and especially those under communal lands. There is a need to lobby the departments of Agriculture as we well as Rural Development and Land reform to prioritise funding of catalyst infrastructure projects to revitalize agricultural production in Sakhisizwe. The priority support and infrastructure necessary should include but not limited to:

Training and capacitation of farmers (skills to operate agricultural enterprises and linkages to market)

Provision of functional mechanical implements and machinery for production (irrigation equipment, tractors, ploughing tools, workshops for repair of machinery, stock dams, sales pans, feeding lots, stock medicines and other)

Fencing of lands to mitigate damages caused by stray animals

Security of assets

Land purchases to promote and empower previously disadvantages to become fully fledged commercial farmers

Breeding stock (bulls, rams and other)

We estimate that if agricultural sector can be fully supported and capacitated, it can easily contribute over 30% of jobs in our local economy and would significantly improve its contribution to gross domestic product (GDP).

5.12 Solid Waste Management services

Solid Waste Management & Refuse:

Refuse collection is a primary competence

of the SLM. Currently the municipality is

providing this service to largely few urban

based households and businesses.

Similarly for cleansing and street cleaning,

only the urban centres of Sakhisizwe

receives this service.

The main challenge for rendering both

these services is aging infrastructure that is

prone to regular breakdowns and

unplanned stoppages. Further, expansion

to rural and outlying rural areas is difficult to

achieve under such circumstances. In these

areas households are either using own

mechanism to dispose of their waste and

refuse or dump illegally anywhere which

leads to degradation and costly damages to

our environment.

A landfill site is being prepared to

accommodate waste and refuse collected in

Cala and Elliot by SLM. This is located near

Cala Town and is operational. In Elliot we

have lobbied funds for environmental affairs

for establishment of Elliot transfer site and

currently construction is underway.

The municipality is also engaged local

economic development opportunities by

promoting and supporting implementation

of recycling projects linked to the landfill site

Backlog for provision of refuse removal remains high with 28% not served at all while another 50% of households use own means of disposing refuse and waste without any support from the municipality. The unfortunate lack of provision in rural areas creates an unfair urban bias and spatial inequalities when comparing rural to urban household’s access to refuse collection service. The figure below uses


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Global insight statistics of 2010 to give an indication of coverage for refuse collection by household access to a level of service within Sakhisizwe municipality As indicated earlier under waste management refuse collection, Sakhisizwe LM is not an authority for waste management. The CHDM is responsible for developing policy and guiding plan (IWMP) in our areas. As Sakhisizwe we are contributing by collaborating the DM on the implementation of the adopted plan as well as participating in influencing priorities during planning. To this extend, we are committed to adapt the existing CHDM IWMP and customise it for our own context during 2014 in order to guide our interventions and waste management activities.

In terms of infrastructure for waste management, we currently operate 2 landfill sites (permitted in terms of NEMA) in Cala and Elliot. The site in Cala which is to be utilised as our primary dumping place is being upgraded to meet required standards and will be in full operation soon.

The municipality has identified as a priority, the need to conduct community awareness campaigns aimed at promoting the following objectives:

Sensitivity to environmental impact arising from illegal and improperly disposed waste

Sorting of waste at household source to enable smooth implementation of planned recycling interventions

Community mobilization toward improved culture of effective waste management

Empowerment of local operators and enterprises in the waste sector

Dissemination of information to empower communities and entities involved in waste management

Coordinating the implementation of the adopted CHDM IWMP programmes

5.13 Environmental & Climate Change Management

SLM is assigned power and function for air quality management but is currently unable to fulfil this mandate due to lack of skills and staff with environmental

management capacity. We hope to remedy this situation as soon as our operational budgets allow.

In the meantime, SLM will rely on support from other spheres of government (CHDM, DoEA and NGOs) to assist with planning, monitoring and production of state of environment reports as required by NEMA.

Climate Change: Sakhisizwe area experiences warm moist summers; cold dry winters and snow during the winter months. Some parts of the area also experience thunder for about 60 days a year.

At our recent strategic planning session we endorsed the proposal to initiate programmes for awareness and mitigation of the impact of climate change under the auspices of IPED and Community Services. The funding for these activities is not yet available in the 2014 internal budget but we shall lobby relevant partners to assist in this regard.

EIAs – our PMU has identified all projects in our capital programme that will require EIAs and have set in place a process to ensure compliance during implementation. Support from the Department of Environmental Affairs on this regard will also be sourced as and when required.

The following are general environmental challenges facing Sakhisizwe LM:

Funding and Policing: Since this is largely a competence of other spheres of government it is difficult for our council to properly budget and provide resources for the required policing (by-laws and enforcement staff) of environmental transgressions. However, through a partnership arrangement with CHDM our municipality will be allocated dedicated public health inspectors who shall initially also be extended to undertake certain environmental management activities on our behalf. The staff will be located in our local offices.

Capacity Challenges: due to lack of internal capacity and human resource provision in our current structure, we are unable to undertake important functions of environmental planning and monitoring. Often, we react to disasters because we do not have appropriate plans to forecast and implement preventative interventions.


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Lack of provision for green spaces: our towns are characterised by dire lack of public and recreational parks. The former land allocated to these activities has unfortunately been taken over by speculative development in Cala town and poor maintenance in Elliott town centre. Local inhabitants do not have descent areas where they can take their families for a picnic or kids to play.

Flooding & Soil Erosion: Due to prevalent terrestrial summer rains often accompanied by storms and thunder and coupled with weakened soil cover, flooding and erosion is common. The flooding problem is also compounded by our prevailing mountainous and high gradient sloping topography.

Drought: due to long periods of nil rain and poor protection of rain water gained during summer rains the areas of Sakhisizwe experience periodic droughts which in turn leads to degeneration of environmental assets as activities like overgrazing become unavoidable.

Decaying urban aesthetics: due to poorly organized refuse collection and waste management programmes coupled with lack of enforcement of local by-laws for town planning, our CBD is characterised by litter and remains from burst water mains. The town of Sakhisizwe is in a state of gradual urban decay and need urgent attention.

Roaming animals: due to broken and sometimes non-existent fences along grazing areas and abutting villages to main roads, roaming animals on our roads and even town streets are common phenomena. These animals are often responsible for accidents on our roads

5.13.1 Natural Environment Analysis

Topography: The Sakhisizwe municipal

area comprises gently undulating “table land” forming the Drakensberg foothills. Elevations in the area range between 750m to 2600m above sea level. The soil types vary according to topography. The low-lying area is characterized by soils with high clay content (highly erodible) and the surrounding hills consist of strong litho-soils. Size of municipality is 2556 km².

Vegetation: The vegetation of the area is

composed of sweet and sour Grassveld.

Trees and shrubs occur on sheltered sites,

rocky hills and ridges. Dohne Sourveld is

the most common transitional forest and

shrub type and the sweet grass is

dominated by Redgrass Themeda triandra.

Unimproved Grassland make up (76%),

with Cultivated Dry land (9%), Degraded

Unimproved Grassland (6%), Forests

Plantations (2.5%), Thicket Bush land

(2.2%) and Built Up Areas (1 %) making up

the balance.

Environmental Development Constraints: Overgrazing - poor farming practices, lack of stock rotation / control. This in-turn leads to degradation of vegetation, soil erosion and increase in invader plants.

Invader plant species - especially wattle

along drainage features. Infrastructure services (lack or poor positioning thereof) - including cemeteries, insufficient sanitation systems, waste disposal and the potential impact on ground and surface water sources

5.13.2 Safe and secure environment

Crime prevention is a competence of other spheres of government and or role is to contribute and participate in established arrangements to combat escalation of crime and its negative impact on our society and economy.

Sakhisizwe is a signatory to the local SAPS integrated community safety plan. We also play a pivotal role in local crime prevention initiatives like community police forums and street committees.

We participate in strategic meetings aimed at ensuring a safe and secure Sakhisizwe for all who live and operate businesses in it. There are at least community forums in each of our nine wards. However, these institutions are not well functional and require more support and capacitation to make them more effective.

5.14 Social cohesion & development programmes

Social development is critical for community

cohesion. Sakhisizwe municipality

understands the importance of this aspect

of our development and has developed

close working relations with critical


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stakeholders like the department of Social

Development 2015/ 2016.

These programmes will continue to be

implemented in 2015/16 as well.


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SUBPROGRAMMES

SUBSTANCE ABUSE

SERVICES TO OLDER PERSONS

CHILD CARE AND PROTECTION

VICTIM EMPOWERMENT

HIV/AIDs

SUB PROGRAMME

NAMS OF ORGANISATION

AREA FAC NUMBER

WARD NO OF BENEFICIARIES RECOMMENDED FOR FUNDING

NPO NO

DURATION ALLOCATED AMOUNT

SUBSTANCE ABUSE

1. Tada Sakhisizwe 6 003-644 NPO

12 months R135 000

OLDER PERSONS

2. Elliot Old Age Home

Elliot 244 1 14 003-853 NPO

12 months R285 600

3. Isidima Somntomdala Service Centre

Mnxe 9797 6 10 117-041 NPO

12 months R24 000

4. Sibanye Service centre

Cala Reserve 9331 6 10 003-425 NPO

12 months R24 000


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5. Masakhane Service Centre

Mgwalana 9804 3 10 144-761 NPO

12 months R24 000

6. Mzomhle Service Centre

Zikhonkwane 9326 3 10 139-749 NPO

12 months R24 000

7. Noncedo Service centre

Mbenge AA 9445 9 10 120-725 NPO

12 months R24 000

8. Masifundisane service Centre

Cala Town 9446 4 10 117-187 NPO

12 months R24 000

9. Lumanyano Service Centre

Elliot-Old location

9330 1 10 146-833 NPO

12 months R24 000

10. Ekuphumleni Service Centre

Elliot-Masibambane

9831 2 10 136-529 NPO

12 months R24 000

11. Ndondo Old age service centre

Ndondo Square

10947 5 10 134-946 NPO

12 months R24 000

12. Masincedane Service centre

Elliot 10944 2 10 139-253 NPO

12 months R24 000

CHILD CARE AND PROTECTION

13. CMR

Elliot 155 1 4 003-644 NPO

12 months R447 830

14. Isibindi

Cala Town –Ndondo Square

10481 5 500 003-644 NPO

12 months R994 266

15. Manzana ECDC

Mnxe 465 6 25 134-465 NPO

193 days R72,375.00


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16. Masithandane ECDC

Mnxe

470 6 30 078-136 NPO

193 days R86,850.00

17. Nobuntu ECDC

Zikhonkwane

407 3 25 078-196 NPO

193 days R72,375.00

18. Good Hope ECDC

Qhiba 10483 3 35 093-730 NPO

193 days R101,325.00

19. Phumlani ECDC

Nyalasa

8898 9 38 085-254 NPO

193 days R110,010.00

20. Nokwakha ECDC

Nyalasa 415 9 36 081-264 NPO

193 days R104,220.00

21. Good Hope ECDC

Cala Town 10490 4 37 093-730 NPO

193 days R107,115.00

22. Nobuhle ECDC

Cala Town 10463 4 30 078-196 NPO

193 days R86,850.00

23. Nosiseko ECDC

Cala Town-Ndondo Square

409 5 37 131-095 NPO

193 days R107,115.00

24. White City ECDC

Mceula

420 7 20 070-012 NPO

193 days R57,900.00

25. Noxolo ECDC

Mceula 8943 7 20 101-889 NPO

193 days R57,900.00

26. Thembeni ECDC

Mceula 416 7 30 076-784 NPO

193 days R86,850.00

27. Iliso Labantwana ECDC

Elliot-Old location

10457 1 37 089-269 NPO

193 days R107,115.00


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28. Masibambane ECDC

Elliot-Vergenoeg

1203 2 37 094-081 NPO

193 days R107,115.00

29. Kuyasa ECDC

Elliot –Polar Park

10468 2 37 107-344 NPO

193 days R107,115.00

30. Masakhe ECDC

Elliot-Polar Park

10493 2 37 106-018 NPO

193 days R107,115.00

31. Masizakhele ECDC

Roma 50 3 20 APP-14/171714

193 days R57,900.00

32. Masizakhe ECDC

Cala Reserve 746 4 37 134-855 NPO

193 days R107,115.0

33. Sizamile ECDC

Sifonondile 466 3 20 078-197 NPO

193 days R57,900.00

34. Ekuphumleni ECDC

Sifonondile 479 3 25 078-192 NPO

193 days R72,375.00

35. Nomzamo ECDC

Lower Cala

8897 6 37 096 -904 NPO

193 days R107,115.0

36. Khanyisile ECDC

Seplan-Askeaton

9146 8 25 094-273 NPO

193 days R72,375.00

37. Seplan ECDC

Seplan 414 8 31 134-465 NPO

193 days R89,745.00

38. Masincedise ECDC

Lower Lufutha 1241 9 37 092-091 NPO

193 days R107,115.0

39. Nompumelelo ECDC

Phakamisani loc

10461 4 30 089-657 NPO

193 days R86,850.00

40. Malukhanye ECDC

Zikhonkwane A/A

10946 3 29 078-432 NPO

193 days R83,955.00

41. Masikhanyise ECDC

Polar Park(Elliot )

11077 2 37 100-489 NPO

193 days R107,115.0

42. Kuyasa Pre-school

Lupapazi (Cala )

10487 7 24 066-977 NPO

193 days R69,480.00


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43. Siyazama ECDC

Ndondo Square

10492 5 37 097-689 NPO

193 days R107,115.00

44. Siyavuya ECDC

Ndondo Square

10452 5 34 089-654 NPO

193 days R98,430.00

45. Nontsikelele ECDC

Upper Indwana

11112 7 24 097-725 NPO

193 days R69,480.00

46. Little Star ECDC

Takalani (Elliot)

10453 1 30 083-371 NPO

193 days R86,850.00

47. Masithwalisane ECDC

Manzimahle A/A

10943 8 25 093-327 NPO

193 days R72,375.00

48. Siyabonga ECDC

Lupapazi A/A 10489 9 25 149-113 NPO

193 days R72,375.00

VICTIM EMPOWERMENT

49. Domestic Violence Monitoring Unit

Cala Town 10269 5 5 037-432 NPO

12 months R300,000

50. Elliot Victim Support Centre

Elliot

11185 2 5 142-747 NPO

12 months R250 000

51. Sakhisizwe Men as partners

Ndondo Square

11512 5 4 care givers 300 beneficiaries

139-665 NPO

12 months R150,000

HIV/AIDS

52. Siyakhana HCBC

Elliot-Old Location

11518 3 10 Care givers 700 beneficiaries

026-425 NPO

12 months R277,743

53. Sophila Sonke HCBC

Cala Town 11161 5 10 Care givers 700 beneficiaries

015-864 NPO

12 months R277,743


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6 FINANCIAL VIABILITY PROFILE

6.1 Economic overview

In general usage a financial plan is a budget, in other words a plan for spending and saving future income. This plan allocates future income to various types of expenses, such as salaries, insurances and also reserves some income for short term and long term savings. A financial plan is also an investment plan, which allocates savings to various assets or projects expected to produce future income.

One of the key issues identified for the sustainability of Sakhisizwe Local Municipality is expanding its revenue base whilst remaining financially viable and sustainable. The objectives are therefore to provide effective, efficient and coordinated financial management and financial accounting.

This financial plan includes the assumptions used when compiling the operating and capital budget, financial strategies as well as the accounting policies and includes national and provincial priorities

The domestic economy has lost momentum as a result of the disruption to world economic activity following the Japanese tsunami, domestic strike activity and moderating household consumption. South Africa’s recession officially ended in 2009/10, boosted by the growth in the manufacturing, electricity, water and gas and construction sectors. The South African economy contracted by 1,8% in 2009, grew by 1,5% in 2010 and was expected to grow by 3,5% in 2011. The economic contraction in 2009 resulted in a sharp decline in employment in the private sector (SARB). However, the economy grew at 4,5% on an annual basis, in the first quarter of 2011, slowing down to 1.3% in the second quarter.

The labour market remains sluggish. Formal sector non-agricultural employment is just 2.6% higher than its low in March 2010. Unemployment increased from

21.8% in the fourth quarter of 2008 to 25.7% in the second quarter of 2011.

The Local Government Budgets and Expenditure Review document highlights the following areas as requiring particular attention while preparing municipal budgets:

Revenue management - To

ensure the collection of revenues,

municipalities need to ensure that

billing systems are accurate, send out

accounts to residents and follow up to

collect revenues owed.

Collecting outstanding debts -

This requires political commitment,

sufficient administrative capacity, and

pricing policies that ensure that bills

are accurate and affordable, especially

for poor households.

Pricing services correctly – The

full cost of services should be reflected

in the price charged to residents who

can afford to pay. Many municipalities

offer overly generous subsidies and

rebates that result in services being

run at a loss, resulting in funds being

diverted away from other priorities.

Under spending on repairs and

maintenance – Often seen as a way

to reduce spending in the short term,

under spending on maintenance can

shorten the life of assets, increase

long-term maintenance and

refurbishment costs and cause a

deterioration in the reliability of

services.

Spending on non-priorities –

Many municipalities spend significant

amounts on non-priority items

including unnecessary travel, luxury

furnishings, excessive catering and

unwarranted public relations projects.

Consultants are often used to perform

routine tasks.

National Priority – creating decent employment opportunities In drafting their budgets, all municipalities are urged to continue to explore opportunities to mainstream labour


IDP REVIEW 65/213

intensive approaches to delivering services and more particularly to participate fully in the Extended Public Works Programme.

Municipalities must focus on maximizing its contribution to job creation by:

Ensuring that service delivery and

capital projects use labour intensive

methods wherever appropriate

Ensuring that service providers use

labour intensive approaches

Supporting labour intensive LED

projects

Participating fully in the Extended

Public Works Programme

Implementing interns programmes to

provide young people with on-the-job

training

The past financial year has presented budgetary challenges to the Sakhisizwe Local Municipality, resultant of the global economic meltdown.

These challenges include coping with revenue shortfall, the collection of arrear debt, and creating a balance between increasing demand for services and limited financial resources. The Sakhisizwe Local Municipality has developed a Financial Strategy to mitigate against these pressures. Several options were considered, which include maximizing revenue generation, debt collection, increase in indigent support, tariff increases above the projected inflation in some services and curtailing of expenditure.

The following graphs indicate the estimated movement in the inflation percentage in the coming three years:

Year 2010-2011

2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

% 5.7 5.9% 5.6% 5.6% 5.4% 5.4%


IDP REVIEW 66/213

6.2 Auditor General Concerns

The municipality is gradually improving on its capacity to plan, manage finances and account on its activities and expenditure. According to Auditor General Sakhisizwe Municipality achieved a qualified audit opinion for the year ended 30 June 2013. He acknowledged that the municipality was able to give a fair presentation in all material respects regarding its financial performance and cashflows as required by MFMA, DORA and GRAP.

The following table gives the basis for the AG’s qualified opinion.

Basis for qualified opinion: The financial statements as a whole are materially misstated due to the

cumulative effect of numerous individually immaterial uncorrected misstatements in the following elements making up the statement of financial position, performance and the notes to the financial statements: - Property, plant and equipment reflected as R 100 million is overstated by R 1.7 million. (Ex. 96: Fixed Assets: Discrepancies in the asset register and useful lives)

- Per inspection of the fixed asset register, the following deficiencies were noted: - The average useful lives of Landfill sites assets of 20 years, is not in line with the Local Government Capital Asset Management Guideline for 2008 of 30 - 55 years. While the useful lives have been assessed by an expert in 2009 and 2012, management has not engaged with National Treasury regarding the use of rates that differ to those per the guidelines. - Per inspection of the Fixed Asset Register, gravel roads prior to 2010 have a useful life of 25 years, which is in contravention with the Asset Management guideline of 3 - 10 years for gravel roads. This is a substantial deviation from the guide which has not been approved by National Treasury. - Assets have payment dates per the Fixed Assets Register that do not agree to the payment date per the payment voucher. - Management has not liaised with National Treasury regarding the use of useful lives which differ to the guidelines available. - The fixed asset register has not been maintained accurately. The impacts of the above findings are noncompliance with the Local Government Capital Asset Management Guideline for 2008 and the inaccurate fixed assets register. - Total receivables reflected as R 11.7 million is understated by R 1 million. (Ex. 160, 162, 164, 167, 183, 173, 160,162, 164, 167, 173, 155)

- No output VAT has been accounted for in invoices to Chris Hani. The above is caused by a lack of review and controls over the entries processed to the general ledger and a lack of knowledge of the VAT Act. - Customers were billed using the incorrect sliding scale for electricity. Management did not exercise due care in the preparation and loading of the sliding scales for electricity, which lead to an error in application. This has resulted in the understatement of electricity revenue and accounts receivable. Management did not properly implement controls over daily and monthly processing and reconciling of transactions. - The incorrect tariff rate was used for the calculation of water revenue. The customer should have been billed using the commercial tariff and not the domestic tariff. Management did not load the correct tariff rates for the relevant customer on the system as management did not apply consistent methods of consumption estimation when calculating rates. - The incorrect tariff rate was used to bill refuse. The municipality incorrectly applied the domestic rate instead of the commercial rate as management did not load the correct tariff on the system for the relevant customer. Management did not implement proper controls over daily and monthly processing and reconciling of transactions - For December 2012, the municipality charged interest on overdue accounts at a rate of 10.5%. In terms of the municipality's policy, interest is charged at prime + 1%. In December 2012, the prime rate was 8.5%,


IDP REVIEW 67/213

and therefore, overdue debtors were overcharged by 1%. - The above is caused by lack of control over ensuring that the correct interest rate is recorded on the system per the Debt and Credit control policy. - Grant expenditure reflected as R 2.9 million is overstated by R 1 million. (Ex. 125, 127)

- There were the following instances of incorrect treatment of Vat of Grant Expenditure: - Input VAT was not claimed from transactions with registered VAT vendors: - Input VAT was claimed for transactions with non-registered VAT vendors: - VAT amounts that do not agree to the invoice amount. - VAT on Grant Expenditure was incorrectly claimed where no service had been delivered, nor had the supplier issued an invoice at the time that the VAT was claimed. - There were instances where Vat was not separately disclosed in the General Ledger. - A repairs and maintenance transaction was inappropriately raised as an expense during the current financial year when payment was made. This expense should have been raised during the prior financial year when all invoices were received or the financial year in which the expense relates to. - Grant expenditure transactions were inappropriately raised as an expense during the current financial year when payment was made. This expense should have been raised during the prior financial year or the following financial year when all invoices were received or the financial year in which the expense relates to. - General expenditure transactions relating to the prior period were recorded in the current financial period.

A detailed AG response plan was developed and is being implemented and reported upon by management. The plan highlights the following:

No. Item of qualification Impact on Classification Responsibility

Audit Report

1

Basis for qualified opinion:

Irregular expenditure

Qualification

Financial Chief Financial Officer

2 Basis for qualified opinion: Water losses

Qualification Financial Technical Manager

3.

Basis for qualified opinion: Aggregation of immaterial uncorrected misstatements

Qualification


4. Emphasis of matters: Unauthorised expenditure

Other Important Matters


5. Emphasis of matters: Material impairments



6.

Other legal and regulatory requirements: Predetermined objectives - presentation of annual performance report


Performance Information Municipal Manager


IDP REVIEW 68/213


Audit Report

7.

Other legal and regulatory requirements: Predetermined objectives - measurability and relevance


Performance Information Municipal Manager

8.

Other legal and regulatory requirements: Compliance with laws and regulations - Asset management


Compliance Chief Financial Officer

9.

Other legal and regulatory requirements: Compliance with laws and regulations - Revenue management


Compliance Chief Financial Officer

10.

Other legal and regulatory requirements: Compliance with laws and regulations - Conditional grants received


Compliance Municipal Manager

11.

Other legal and regulatory requirements: Compliance with laws and regulations - Expenditure management


Compliance Chief Financial

Officer

12.

Other legal and regulatory requirements: Compliance with laws and regulations - Procurement



Officer


IDP REVIEW 69/213


Audit Report

13.

Other legal and regulatory requirements: Compliance with laws and regulations - Consequence management



Officer

14.

Other legal and regulatory requirements: Compliance with laws and regulations - Annual financial statements, performance and annual reports


Compliance Iped Manager

15.

Other legal and regulatory requirements: Compliance with laws and regulations - Audit committee


Compliance Internal Audit

16.

Other legal and regulatory requirements: Compliance with laws and regulations - Internal audit


Compliance Internal Audit

17.

Other legal and regulatory requirements: Compliance with laws and regulations - Human resource management


Compliance Municipal Manager

18.

Other legal and regulatory requirements: Internal control - Leadership


Control Municipal Manager

19.

Other legal and regulatory requirements: Internal control - Financial and performance management


Control Municipal Manager


IDP REVIEW 70/213


Audit Report

20.

Other legal and regulatory requirements: Internal control - Governance


Control Internal Audit

6.3 MTREF Budget 2013/14 – 2016/17

SAKHISIZWE MUNICIPALITY FINANCIAL PLAN (3YEAR)

2016 - 2018

1. Introduction In general usage a financial plan is a budget, in other words a plan for

spending and saving future income. This plan allocates future income to various types of expenses, such as salaries, insurances and also reserves some income for short term and long term savings. A financial plan is also an investment plan, which allocates savings to various assets or projects expected to produce future income.

One of the key issues identified for the sustainability of Sakhisizwe Local

Municipality is expanding its revenue base whilst remaining financially viable and sustainable. The objectives are therefore to provide effective, efficient and coordinated financial management and financial accounting.

This financial plan includes the assumptions used when compiling the

operating and capital budget, financial strategies as well as the accounting policies and includes national and provincial priorities.


IDP REVIEW 71/213

6.3.1 Overview of Economic Analysis 6.3.1.1 INTRODUCTION

The domestic economy has lost momentum as a result of the disruption to world economic activity following the Japanese tsunami, domestic strike activity and moderating household consumption. South Africa’s recession officially ended in 2009/10, boosted by the growth in the manufacturing, electricity, water and gas and construction sectors. The South African economy contracted by 1,8% in 2009, grew by 1,5% in 2010 and was expected to grow by 3,5% in 2011. The economic contraction in 2009 resulted in a sharp decline in employment in the private sector (SARB). However, the economy grew at 4,5% on an annual basis, in the first quarter of 2011, slowing down to 1.3% in the second quarter. The labour market remains sluggish. Formal sector non-agricultural employment is just 2.6% higher than its low in March 2010. Unemployment increased from 21.8% in the fourth quarter of 2008 to 25.7% in the second quarter of 2011. The Local Government Budgets and Expenditure Review document highlights the following areas as requiring particular attention while preparing municipal budgets:

Revenue management - To ensure the collection of revenues,

municipalities need to ensure that billing systems are accurate, send out

accounts to residents and follow up to collect revenues owed.

Collecting outstanding debts - This requires political commitment,

sufficient administrative capacity, and pricing policies that ensure that bills

are accurate and affordable, especially for poor households.

Pricing services correctly – The full cost of services should be reflected

in the price charged to residents who can afford to pay. Many

municipalities offer overly generous subsidies and rebates that result in

services being run at a loss, resulting in funds being diverted away from

other priorities.

Under spending on repairs and maintenance – Often seen as a way to

reduce spending in the short term, under spending on maintenance can

shorten the life of assets, increase long-term maintenance and

refurbishment costs and cause a deterioration in the reliability of

services.

Spending on non-priorities – Many municipalities spend significant

amounts on non-priority items including unnecessary travel, luxury

furnishings, excessive catering and unwarranted public relations projects.

Consultants are often used to perform routine tasks.


IDP REVIEW 72/213

National Priority – creating decent employment opportunities

In drafting their budgets, all municipalities are urged to continue to explore opportunities to mainstream labour intensive approaches to delivering services and more particularly to participate fully in the Extended Public Works Programme. Municipalities must focus on maximizing its contribution to job creation by:

Ensuring that service delivery and capital projects use labour intensive

methods wherever appropriate

Ensuring that service providers use labour intensive approaches

Supporting labour intensive LED projects

Participating fully in the Extended Public Works Programme

Implementing interns programmes to provide young people with on-the-

job training

The past financial year has presented budgetary challenges to the Sakhisizwe Local Municipality, resultant of the global economic meltdown. These challenges include coping with revenue shortfall, the collection of arrear debt, and creating a balance between increasing demand for services and limited financial resources. The Sakhisizwe Local Municipality has developed a Financial Strategy to mitigate against these pressures. Several options were considered, which include maximizing revenue generation, debt collection, increase in indigent support, tariff increases above the projected inflation in some services and curtailing of expenditure.

6.3.1.2 THE OUTLOOK FOR INFLATION

The following graphs indicate the estimated movement in the inflation percentage in the coming three years:

Year 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018

% 5.6% 5.6% 6.2% 5.8% 5.5% 5.3%


IDP REVIEW 73/213

6.3.1.3 SUMMARY OF BUDGET ASSUMPTIONS

The Salary and Wage Collective Agreement for the period 01 July 2012 to 31

June 2015 has come to an end. In the absence of other information from the

South African Local Government Bargaining Council, municipalities are

advised to budget for a 5.8 per cent cost-of-living increase adjustment to be

implemented with effect from 01 July 2015 (in line with the increase

proposed in the 2014 MTBPS). Municipalities must further use the inflation

forecast to project increases in the outer years.

Bulk purchases have been increased by 14.24% in line with Eskom’s

electricity tariff increase to municipalities;

Other expenditure: in order to accommodate the increases in salaries,

bulk purchases, debt impairment and depreciation, it means that all other expenditure will increase at a reduced rate or maintained at the current levels;

Sakhisizwe Local Municipality will continue with its current powers and

functions; The Budget is based on current service levels.

Government grants for the years 2015/2016 to 2016/2017 are as per

the Division of Revenue Act, assuming that all allocations will be received;

The inflation rate has been estimated at 5.8% per annum;

Tariff increases relating to services are as follows: Rates = 6.00 %

Refuse = 6.00 %

Electricity = 12.20 %

6.3.1.4 Capital & Operating Budget

The three-year financial plan includes an Operating Budget and Capital Investment Programme for the three years ending June 2017.

a) Operating Budget


IDP REVIEW 74/213

Table A4 details the Operating Budget for the three years starting 1 July 2015 and ending 30 June 2018. The repair and maintenance budget is 2.89% of the total expenditure budget for the financial year 2015 - 2016.

EC138 Sakhisizwe - Table A4 Budgeted Financial Performance (revenue and expenditure)

Description Ref 2011/12 2012/13 2013/14 Current Year 2014/15 2015/16 Medium Term Revenue &

Expenditure Framework

R thousand 1 Audited

Outcome Audited

Outcome Audited

Outcome Original Budget

Adjusted Budget

Full Year Forecast

Pre-audit outcome

Budget Year 2015/16

Budget Year +1 2016/17


Revenue By Source

Property rates 2 2 867

3 684

4 387

4 400

4 400

4 400

4 400

4 685

4 943

5 205

Property rates - penalties & collection charges –

–

–

–

–

–

–

–

–

–

Service charges - electricity revenue 2 5 528

7 326

7 517

8 650

8 650

8 650

8 650

9 909

10 454

11 008

Service charges - water revenue 2 1 678

2 003

3 407

5 650

–

–

–

–

–

–

Service charges - sanitation revenue 2 1 149

1 094

2 871

1 400

–

–

–

–

–

–

Service charges - refuse revenue 2 1 443

1 446

2 037

2 085

2 085

2 085

2 085

2 282

2 408

2 535

Service charges - other –

–

–

–

–

–

–

–

–

–

Rental of facilities and equipment 138

167

269

1 175

1 135

1 135

1 135

1 135

1 197

1 261

Interest earned - external investments 1 175

1 012

402

636

456

456

456

456

481

507

Interest earned - outstanding debtors 4 243

4 239

5 259

4 475

2 375

2 375

2 375

2 375

2 506

2 586

Dividends received –

–

–

–

–

–

–

–

–

–

Fines 2 269

1 834

1 168

1 324

1 324

1 324

1 324

1 324

1 397

1 471

Licences and permits 9

13

9

13

13

13

13

13

14

14

Agency services 10 896

8 678

13 084

18 610

8 241

8 241

8 241

813

858

903

Transfers recognised - operational 43 048

42 342

49 973

54 630

55 630

55 630

55 630

65 608

63 353

61 593

Other revenue 2 1 343

1 572

975

1 664

1 599

1 599

1 599

1 594

1 682

1 771

Gains on disposal of PPE


IDP REVIEW 75/213

– – 268 119 119 119 119 119 126 125

Total Revenue (excluding capital transfers and contributions)

75 787

75 411

91 626

104 831

86 028

86 028

86 028

90 313

89 416

88 978

Expenditure By Type

Employee related costs 2 27 682

33 551

35 025

38 499

34 497

34 497

34 497

33 577

35 424

37 301

Remuneration of councillors 4 543

4 912

5 371

5 597

5 546

5 546

5 546

5 559

5 865

6 175

Debt impairment 3 5 594

6 804

25 762

11 396

4 180

4 180

4 180

4 180

4 410

4 644

Depreciation & asset impairment 2 9 104

9 451

10 913

4 916

9 097

9 097

9 097

9 097

9 597

10 092

Finance charges 1 394

1 341

1 163

397

397

397

397

397

418

441

Bulk purchases 2 7 120

6 199

6 788

9 789

9 611

9 611

9 611

9 459

9 979

10 508

Other materials 8 –

–

–

–

–

–

–

–

–

–

Contracted services 277

123

930

1 112

2 805

2 805

2 805

3 612

3 811

4 013

Transfers and grants –

–

–

–

–

–

–

–

–

–

Other expenditure 4, 5

19 593

23 672

37 144

30 627

25 920

25 920

25 920

23 783

22 771

23 969

Loss on disposal of PPE –

–

–

–

–

–

–

–

–

–

Total Expenditure 75 306

86 053

123 097

102 333

92 052

92 052

92 052

89 664

92 275

97 143

Surplus/(Deficit) 481

(10 643)

(31 470)

2 498

(6 025)

(6 025)

(6 025)

649

(2 859)

(8 165)

Transfers recognised - capital 7 325

20 395

16 563

21 591

21 591

21 591

21 591

21 090

17 623

18 421

Contributions recognised - capital 6 –

–

–

–

–

–

–

–

–

–

Contributed assets

Surplus/(Deficit) after capital transfers & contributions

7 806

9 752

(14 907)

24 089

15 566

15 566

15 566

21 739

14 763

10 256

Taxation

Surplus/(Deficit) after taxation 7 806

9 752

(14 907)

24 089

15 566

15 566

15 566

21 739

14 763

10 256

Attributable to minorities

Surplus/(Deficit) attributable to municipality 7 806

9 752

(14 907)

24 089

15 566

15 566

15 566

21 739

14 763

10 256


IDP REVIEW 76/213

Share of surplus/ (deficit) of associate 7

Surplus/(Deficit) for the year 7 806

9 752

(14 907)

24 089

15 566

15 566

15 566

21 739

14 763

10 256

b) Capital Budget The Capital Investment Programme is listed in Table A5 below.

EC138 Sakhisizwe - Table A5 Budgeted Capital Expenditure by vote, standard classification and funding

Vote Description Ref 2011/12 2012/13 2013/14 Current Year 2014/15 2015/16 Medium Term Revenue &


R thousand 1 Audited

Outcome Audited

Outcome Audited


Adjusted Budget

Full Year Forecast

Pre-audit outcome

Budget Year 2015/16



Capital expenditure - Vote

Multi-year expenditure to be appropriated 2

Vote 1 - Executive and council

–

–

–

–

–

–

–

–

–

–

Vote 2 - BUDGET AND TREASURY

–

–

–

–

–

–

–

–

–

–

Vote 3 - CORPORATE SERVICES

–

–

–

–

–

–

–

–

–

–

Vote 4 - PLANNING & DEVELOPMENT

–

–

–

–

–

–

–

–

–

–

Vote 5 - TECHNICAL SERVICES

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

Capital multi-year expenditure sub-total 7 –

–

–

–

–

–

–

–

–

–

Single-year expenditure to be appropriated 2

Vote 1 - Executive and council

489

505

517

600

100

100

100

100

106

111

Vote 2 - BUDGET AND TREASURY

90

–

–

100

230

230

230

400

422

444


412

– 1

017

–

–

–

–

–

–

–


–

–

–

–

–

–

–

–

–

–

Vote 5 - TECHNICAL SERVICES 13

842 7

999 13

153 14

367 18

102 18

102 18

102 20

520 17

239 17

841

–

–

–

–

–

–

–

–

–

–


IDP REVIEW 77/213

Capital single-year expenditure sub-total 17

248 17

029 19

394 23

274 22

691 22

691 22

691 21

610 18

388 19

052

Total Capital Expenditure - Vote 17

248 17

029 19

394 23

274 22

691 22

691 22

691 21

610 18

388 19

052

Capital Expenditure - Standard

Governance and administration 990

505

1 533

700

330

330

330

500

528

555

Executive and council 489

505

517

600

100

100

100

100

106

111

Budget and treasury office 90

–

–

100

230

230

230

400

422

444

Corporate services 412

–

1 017

–

–

–

–

–

–

–

Community and public safety 93

5 364

840

6 300

4 037

4 037

4 037

590

622

655

Community and social services 93

5 364

840

6 300

4 037

4 037

4 037

590

622

655

Sport and recreation –

–

–

–

–

–

–

–

–

–

Public safety –

–

–

–

–

–

–

–

–

–

Housing –

–

–

–

–

–

–

–

–

–

Health –

–

–

–

–

–

–

–

–

–

Economic and environmental services 13 394

6 833

10 995

9 317

12 342

12 342

12 342

16 510

17 228

17 830

Planning and development –

–

–

–

–

–

–

–

–

–

Road transport 13 394

6 833

10 995

9 317

12 342

12 342

12 342

16 510

17 228

17 830

Environmental protection –

–

–

–

–

–

–

–

–

–

Trading services 2 771

4 326

6 025

6 957

5 982

5 982

5 982

4 010

11

11

Electricity 448

934

2 158

5 050

5 760

5 760

5 760

4 010

11

11

Water –

231

–

–

–

–

–

–

–

–

Waste water management –

–

–

–

–

–

–

–

–

–

Waste management 2 323

3 161

3 868

1 907

222

222

222

–

–

–

Other –

–

–

–

–

–

–

–

–

–

Total Capital Expenditure - Standard 3 17 17 19 23 22 22 22 21 18 19


IDP REVIEW 78/213

248 029 394 274 691 691 691 610 388 052

Funded by:

National Government 15 717

9 994

17 020

22 474

22 341

22 341

22 341

21 090

17 840

18 474

Provincial Government –

–

–

–

–

–

–

–

–

–

District Municipality –

–

–

–

–

–

–

–

–

–

Other transfers and grants –

–

–

–

–

–

–

–

–

–

Transfers recognised - capital 4 15 717

9 994

17 020

22 474

22 341

22 341

22 341

21 090

17 840

18 474

Public contributions & donations 5 –

–

–

–

–

–

–

–

–

–

Borrowing 6 –

–

–

–

–

–

–

–

–

–

Internally generated funds 1 531

7 035

2 374

800

350

350

350

520

549

578

Total Capital Funding 7 17 248

17 029

19 394

23 274

22 691

22 691

22 691

21 610

18 388

19 052

c) Grants receivable Herewith the schedule of Grant Receivable for the financial year 2015 – 2016:

NATIONAL DORA ALLOCATIONS

Year Year Year

Description 2015/2016 2016/2017 2017/2018

Direct

Equitable Share 56 481 000 56 121 000 54 027 000

Councillor Remuneration 3 100 000 3 241 000 3 384 000

Finance Management Grant (FMG) 1 600 000 1 625 000 1 700 000

Municipal System Improvement Grant (MSIG) 930 000 957 000 1 033 000

Municipal Infrastructure Grant (MIG) 17 989 000 18 550 000 19 390 000

Integrated National Electrification Programme Grant (Municipal) 4 000 000

Expanded Public Works - Programme Integrated Grant 1 000 000


IDP REVIEW 79/213

85 100 000 80 494 000 79 534 000

Indirect

Integrated National Electrification Programme Grant (Eskom)

Water Services Operating Subsidy Grant

Neighbourhood Development Partnership Grant

Municipal Disaster Grant

MIG Allocation for District Municipalities 19 928 000 20 788 000 22 077 000

19 928 000 20 788 000 22 077 000

Direct (Other)

Water: 67% of Total Allocation (CHDM)

Sanitation: 67% of Total Allocation (CHDM)

- - -

105 028 000 101 282 000 101 611 000

PROVINCIAL DORA ALLOCATIONS

Year Year Year

Description 2014/2015 2016/2017 2017/2018

Local Economic Development (LED) Capacity 117 000 112 000 110 000

Expanded Public Works Programme (EPWP)

Library Subsidies 369 000 369 000 369 000


IDP REVIEW 80/213

369 000 369 000 369 000

DISTRICT ALLOCATIONS (Chris Hani) ALLOCATIONS

Year Year Year

Description 2015/2016 2016/2017 2017/2018

- - -

6.3.1.5 Situational Analysis


IDP REVIEW 81/213

Conclusion: The capital projects complete for the year 2013 – 2014 amounts to R19 393 715 against the budgeted amount of R19 016 200. This represents a spending percentage of 101.99 %. The % own capital to fund capital expenditure is 9.38%. Repair and maintenance on assets are 4.19% of the expenditure budget. 6.3.1.6 Financial Strategy

Sakhisizwe Local Municipality is a developing municipality located in the rural areas of the Province of the Eastern Cape. Only a small percentage of its population is economically active which poses specific challenges regarding financial sustainability. Council operations must be conducted in a manner that will ensure that services will remain affordable and yet tariffs must be able to cover costs. The Municipality does have a GRAP compliant asset register from the financial year 2008 – 2009. All infrastructure assets were valued and reflected at fair values. The valuation roll of the municipality is up to date and implemented on the financial system Sebata. The latest valuation roll is implemented 01 July 2013. Sakhisizwe Municipality does have a revenue enhancement policy in place since 1 July 2012. The by-laws of the municipality are reviewed in the year 2012 - 2013 and implemented from 01 July 2013. The policies of the Municipalities are promulgated in the By-laws and gazetted. The Municipality does have an effective internal control system in place.

a) Revenue Raising Strategy


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Outstanding debt amounts to R49 million. Drastic steps must be implemented to have this amount reduced as it will eventually lead to cash flow problems. The target is that 90% of all billing must be collected. The following are some of the more significant programmes that have been identified: o The review and implementation of the Credit Control & Debt Collection Policy. This policy and the

relevant procedures detail all areas of credit control, collection of amounts billed to customers, procedures for non-payment etc.

o The review and implementation of the Indigent Policy. This policy defines the qualification criteria of an

indigent, the level of free basic services enjoyed by indigent households, penalties for abuse etc.

o The review and implementation of the Tariff Policy. This policy will ensure that fair tariffs are charged in a uniform manner throughout the Sakhisizwe Local Municipality area. Tariffs must remain affordable but also insure sustainable services.

o The review and implementation of the Property Rates and Valuation Policy. This will ensure that a fair

rates policy and an updated valuation roll is applied to the entire Sakhisizwe Local Municipality area and will aim to ensure that all properties are included in the municipality’s records. Furthermore the policy will ensure that valuations are systematically carried out on regular bases for all properties.

o The review and implementation of the Improved Payment Strategy. This strategy aims at implementing

innovative cost effective processes to encourage consumers to pay their accounts in full on time each month, including increasing the methods of payment and implementing on-line pre-payment systems.

b) Asset Management Strategy

The following are some of the more significant programmes that have been identified: o The maintaining of the asset management system. All assets must be captured on the asset

management system on a monthly basis. The system must be maintained in terms of GRAP requirements.


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o The review and update of asset and risk insurance procedures and the renewal of the insurance portfolio. This programme will involve the identification of risks in conjunction with insurers and all Departments and the review and update of the asset and risk insurance procedure manual. It will also include the review of the existing insurance portfolio and the renewal of the insurance policy as per the renewal terms.

c) Capital Financing Strategy

The following are some of the more significant programmes that have been identified: o The review and implementation of the municipal loans policy. This policy will ensure that any

borrowings taken by the Sakhisizwe Local Municipality will be done in a responsible manner and that the repayment and servicing of such debt will be affordable.

d) Projected staff growth and costs After the 2011 Local Government Election the status of Sakhisizwe Municipality changed from a plenary council to an executive council, which will result in an increase in the staff component. Currently the municipality is using casuals to assist with service delivery of the refuse collection function. The option of appointing more permanent staff for the services needs to be investigated and can result in an increase in the staff component of the municipality with a financial implication. e) Managing Global Financial Crisis Alternative mechanisms being sought by the municipality to finance investment in infrastructure and acquiring of new infrastructure.


IDP REVIEW 84/213

MFMA Circular 48 notes that the global economy is experiencing a sharp downturn, spreading from developed to developing countries. Its origins lie in macroeconomic imbalances of an unprecedented scale and therefore, the consequences are felt everywhere. Given the current economic crisis, municipalities will need to take some very tough decisions in the course of preparing their 2012 – 2013 budget and MTREF. We have given priority to the following critical issues:

Focus Area Detail

Managing and enhancing all revenue streams, especially debtors.

Develop a revenue enhancement strategy and recovery plan.

Supporting meaningful local economic development (LED) initiatives that foster micro and small business opportunities and job creation

Implement LED strategy which seeks to address job creation through support to SMME’s

Expediting spending on capital projects that are funded by conditional grants.

Develop a strategy through which all conditional grants are re-in fenced, and reported monthly to council

Customer Centre In a process of enhancing and expanding the customer and the Presidential Hotline System to include all the municipal sections.

6.3.1.7 Cash Flow The Municipality currently do not experience cash flow constrains. Through sufficient budget control and sound management, the Municipality will maintain the status during the next 3 financial years.


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The Cash Flow of the Municipality is as follows

EC138 Sakhisizwe - Table A7 Budgeted Cash Flows

Description Ref 2011/12 2012/13 2013/14 Current Year 2014/15 2015/16 Medium Term Revenue &


R thousand Audited

Outcome Audited

Outcome Audited


Adjusted Budget

Full Year Forecast

Pre-audit outcome

Budget Year 2015/16



CASH FLOW FROM OPERATING ACTIVITIES

Receipts

Property rates, penalties & collection charges –

4 432

4 400

4 400

2 160

2 160

2 300

2 426

2 555

Service charges 29 626

29 393

15 933

17 785

2 811

5 269

5 269

5 983

6 313

6 647

Other revenue –

25 057

20 524

14 811

9 246

9 246

4 301

4 538

4 778

Government - operating 1 54 255

54 238

41 187

53 757

55 630

55 630

55 630

65 608

63 353

61 593

Government - capital 1 –

–

24 560

17 464

21 591

21 591

21 591

21 090

17 623

18 421

Interest 4 243

4 239

5 259

1 324

2 831

1 622

1 622

1 622

1 711

1 776

Dividends –

–

–

Payments

Suppliers and employees (67 270)

(68 682)

(106 715)

(85 279)

(76 621)

(81 110)

(81 110)

(76 193)

(77 731)

(81 255)

Finance charges (148)

(209)

–

(397)

(397)

(397)

(397)

(397)

(418)

(441)

Transfers and Grants 1 –

–

–

(5 346)

(4 405)

–

–

–

–

–

NET CASH FROM/(USED) OPERATING ACTIVITIES 20 705

18 980

9 714

24 233

20 651

14 011

14 011

24 315

17 813

14 073

CASH FLOWS FROM INVESTING ACTIVITIES

Receipts

Proceeds on disposal of PPE –

–

–

119

119

119

119

126

125

Decrease (Increase) in non-current debtors –

–

–

–

–

Decrease (increase) other non-current receivables –

–

–

–

–

Decrease (increase) in non-current investments –

189

–

–

–

–

–

Payments


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Capital assets (16 189)

(15 102)

(19 464)

(23 274)

(22 691)

(22 691)

(22 691)

(21 610)

(18 388)

(19 052)

NET CASH FROM/(USED) INVESTING ACTIVITIES (16 189)

(15 102)

(19 275)

(23 155)

(22 691)

(22 572)

(22 572)

(21 491)

(18 263)

(18 926)

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts

Short term loans –

–

–

–

–

Borrowing long term/refinancing (584)

(422)

(1 346)

–

–

–

–

–

Increase (decrease) in consumer deposits –

–

35

35

35

35

7

7

8

Payments

Repayment of borrowing (2 156)

(2 203)

–

(302)

369

499

499

(3 341)

(1 850)

–

NET CASH FROM/(USED) FINANCING ACTIVITIES (2 740)

(2 624)

(1 346)

(266)

404

534

534

(3 334)

(1 842)

8

NET INCREASE/ (DECREASE) IN CASH HELD 1 776

1 254

(10 907)

811

(1 636)

(8 027)

(8 027)

(510)

(2 292)

(4 846)

Cash/cash equivalents at the year begin: 2 9 967

11 743

12 997

12 997

2 090

2 090

2 090

(5 937)

(6 447)

(8 739)

Cash/cash equivalents at the year-end: 2 11 743

12 997

2 090

13 808

454

(5 937)

(5 937)

(6 447)

(8 739)

(13 585)


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6.3.1.7 Financial Management Policies

a) General Financial Philosophy The financial policy of the Sakhisizwe Local Municipality is to provide

sound, secure and fraud free management of financial services. The Budget and Finance Office has the following objectives:

Implementation of LG MFMA

Implementation of the LG Municipal Property Rates Act

Management of the Budget Process

Performance of the Treasury Function

Management of Municipal Revenue

Maintaining the Supply Chain Management Unit

Maintenance of Internal Financial Control

Production of Financial Performance Reports

To Retain the Financial Viability of the Municipality

To work towards an Unqualified Audit Report

Herewith the list of the current budget and financial related policies of Sakhisizwe Municipality as reviewed yearly.

Budget Policy

Corruption and Fraud Policy

Credit Control and Debt Collection Policy

Bad Debt Write Off Policy

Asset Management Policy

Indigent Policy

Cash & Investment Management Policy

Rates Policy

Funding & Reserves

Tariff Policy

Long Term Financial Plan

Information Technology Policy

Supply Chain Management Policy

Interest Reversal Policy

Infrastructure investment and capital projects

Loans Policy

Unforeseen & Unavoidable Expenditure Policy

Administration of Immoveable Property Policy


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MFMA Delegations Policy (Section 79 of MFMA)

b) Budget Policy

The aim of the policy is to set out the budgeting principles which the municipality will follow in preparing each annual budget, as well as the responsibilities of the chief financial officer in compiling such budget.

c) Tariff Policy

A tariff policy must be compiled, adopted and implemented in terms of Section 74 of the Local Government: Municipal Systems Act 2000, such policy to cover, among other things, the levying of fees for municipal services provided by the municipality itself or by way of service delivery agreements.

d) Rates Policy

In developing and adopting this rates policy, the council has sought to give effect to the sentiments expressed in the preamble of the LG Municipal Property Rates Act, namely that:

the Constitution enjoins local government to be developmental in nature, in addressing the service delivery priorities of our country and promoting the economic and financial viability of our municipalities;

there is a need to provide local government with access to a sufficient and buoyant source of revenue necessary to fulfill its developmental responsibilities;

revenues derived from property rates represent a critical source of income for municipalities to achieve their constitutional objectives, especially in areas neglected in the past because of racially discriminatory legislation and practices; and

It is essential that municipalities exercise their power to impose rates within a statutory framework which enhances certainty, uniformity and simplicity across the nation and which takes account of historical imbalances and the burden of rates on the poor.

In applying its rates policy, the council shall adhere to all the requirements of the Property Rates Act no. 6 of 2004 including any regulations promulgated in terms of that Act.


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e) Indigent Support Policy

The objective of Indigent Support Policy is to ensure the following:

The provision of basic services to the community in a sustainable manner, within the financial and administrative capacity of the Council; and

To provide procedure and guidelines for subsidization of basic provisions received from Central Government, according to prescribed Policy guidelines.

The Council also recognizes that there may be residents simply not able to afford the cost of full provision and for this reason the Council will endeavour to ensure affordability through:

Settings tariffs in terms of the Council Tariff Policy; which will balance the economic viability of continued service delivery; and

Determining appropriate service levels.

f) Credit Control & Debt Collection Policy

The purpose is to ensure that credit control forms an integral part of the financial system of the local authority, and to ensure that the same procedure be followed for each individual case.

g) Supply Chain Management Policy

The objective of this policy is to provide a policy framework within which the municipal manager and chief financial officer can institute and maintain a supply chain management system which is transparent, efficient, equitable, competitive, which ensures best value for money for the municipality, applies the highest possible ethical standards, and promotes local economic development. By adopting this policy the council further pledges itself and the municipal administration, to the full support of the Proudly SA campaign and to the observance of all applicable national legislation, including specifically the:

Preferential Procurement Policy Framework Act No. 5 of 2000 and its regulations;


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Broad Based Black Economic Empowerment Act No. 53 of 2003 and any applicable code of practice promulgated in terms of that Act; and

LG Municipal Finance Management Act No. 56 of 2003, including the regulations relating to the prescribed framework for supply chain management.

A paraphrase of the relevant provisions of the foregoing statutes is annexed to this policy. Where applicable, the council also pledges itself to observe the requirements of the Construction Industry Development Board Act No. 38 of 2000 and its regulations. The following committees exist for the execution of supply chain:

Bid specification committee

Bid evaluation committee

Bid Adjudication committee

The turnover rate for procurement are 14 days for goods, 7 days for goods and services between R30 000 and R200 000 and 30 – 60 days for amounts above R200 000. The Municipality does have an effective contract management system in place as part of the Supply Chain Management Unit.

h) Accounting Policies

Sakhisizwe Local Municipality has submitted it’s Annual Financial Statements in time to the Auditor General for the financial year ending June 2014. The municipality moved out of disclaimers to a qualified opinion for the financial year ending June 2014. The municipality is striving towards unqualified audit reports.

Basis of Presentation of financial statements The Annual Financial Statements have been prepared on an accrual basis of accounting and are in accordance with the historical cost convention, except where indicated otherwise.

The Annual Financial Statements have been prepared in accordance with the Accounting Standards as prescribed by the Minister of Finance in terms of


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Government Gazette number 31021, Notice Number 516, dated 9 May 2008, and also in terms of the standards and principles contained in Directives 4 and 5 issued by the ASB in March 2009. Audit Outcomes The audit outcome for the past 3 years was as follows:

2009 - 2010: Adverse Audit Opinion

2010 - 2011: Qualified Audit Opinion



2013 – 2014: Qualified Audit Opinion

The municipality is aiming for Unqualified Audit Opinion towards 2015 - 2016. Sakhisizwe Municipality does have an AFS Process Plan / year end preparation plan in place. The internal audit unit does a Risk Assessment on an annual basis. This assessment is managed by the Internal audit unit during the financial year. The Municipality does have and maintain a proper filing system. During the preparation of the Annual Financial Statements, a complete audit file are prepared and made available to the auditors. Debtors – Revenue Management Consumers are billed on a monthly basis as per the norms and standards of revenue management. The debtor’s turnover rate is 2.91. Debts are collecting according to the Revenue enhancement strategy.


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The following table reflects the % budgeted income realized for the past two years: Creditors There are no long outstanding creditors of Sakhisizwe Municipality and creditors are paid within 30 days, as per the MFMA. The creditor’s turnover rate is 3.59. Grant usage The Grant usage for the financial year 2013 – 2014 is as follows:

Financial Year: 2013 - 2014

Amount Amount %

Grant Received Spent Spent

Mig 16 596 000

16 463 508

99.20

Dme -

Msig 890 000

890 000

100.00

Fmg 1 550 000

1 550 000

100.00

2012-2013 2012-2013 2013-2014 2013-2014

Catogory Budget Actual % Budget Actual %

Property Rates 4 200 000 3 263 856 77.71 4 200 000 4 432 300 105.53

Service Charges 21 100 000 13 815 717 65.48 21 100 000 16 885 233 80.02

Rental of facilities and equipment 1 116 000 157 402 14.10 1 116 000 -

Interest earned - External investments 636 000 530 329 83.39 636 000 497 045 78.15

Interest earned - Outstanding Debtors 4 475 000 4 238 688 94.72 4 475 000 5 258 995 117.52

Fines 24 350 31 783 130.53 24 350 -

Licenses and permits

Income for agency services 4 615 099 5 029 743 108.98 4 615 099 -

Government Grants and Subsidies 63 418 200 62 854 608 99.11 63 418 200 66 510 895 104.88

Other Income 17 748 413 2 935 973 16.54 17 748 413 15 481 829 87.23

Totaal: 117 333 061 92 858 099 117 333 061 109 066 297


IDP REVIEW 93/213

The Accounting Framework of the municipality, based on the preceding paragraphs, is therefore as follows: GRAP 1 Presentation of Financial Statements

GRAP 2 Cash Flow Statements

GRAP 3 Accounting Policies, Changing in Accounting Estimates and Errors

GRAP 4 The Effects of Changes in Foreign Exchange Rates

GRAP 5 Borrowing Costs

GRAP 6 Consolidated and Separate Financial Statements

GRAP 7 Investments in Associates

GRAP 8 Interests in Joint Ventures

GRAP 9 Revenue from Exchange Transactions

GRAP 10 Financial Reporting in Hyperinflationary Economies

GRAP 11 Construction Contracts

GRAP 12 Inventories

GRAP 13 Leases

GRAP 14 Events after the Reporting Date

GRAP 16 Investment Property

GRAP 17 Property, Plant and Equipment

GRAP 19 Provisions, Contingent Liabilities and Contingent Assets

GRAP 100 Non-current Assets Held for Sale and Discontinued Operations

GRAP 101 Agriculture

GRAP 102 Intangible Assets

GAMAP 9 Paragraphs relating to Revenue from Non-exchange Transactions

IPSAS 20 Related Party Disclosures

IPSAS 21 Impairment of Non Cash-generating Assets

IFRS 3 Business Combinations

IFRS 7 Financial Instruments: Disclosures

IAS 19 Employee Benefits

IAS 32 Financial Instruments: Presentation

IAS 36 Impairment of Assets

IAS 39 Financial Instruments: Recognition and Measurement

IFRIC 4 Determining whether an Arrangement contains a Lease


IDP REVIEW 94/213

6.3.1.8 Information and Communication Technology The ICT Software used by Sakhisizwe Local Municipality is summarized in Table F6 below:

Table F6

COMPANY PROGRAMME APPLICATION

1. Sebata 1. Sebata FMS 1 Billing 2 Creditors 3 Stores 4 Ledger 5 Assets 6 Cash Book 7 Payroll

2. Windows 1 Operating System

2. Microsoft 1. MS Office 1 Word 2 Excel 3 Power Point 4 Presentations and

Publisher 5 Adobe Acrobat 6.0, 8 & 5

2. Outlook 1 Email

3. Windeed 1. Win Deed 2. Win Search 3. Win Transfer

1 Property transfers 2 Title deed searches 3 Report on property transfers

4. First National Bank

1. Corporate Banking

1 Electronic Banking

5. SITA 1. eNatis 2. Pals

1 Motor Vehicle Registration

2 Library Book issues


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2.9 THE SERVICE DELIVERY BUDGET IMPLEMENTATION PLAN (SDBIP)

INTRODUCTION The SDBIP marries the Performance Management System (as required under the Municipal Systems Act) with the budget and the IDP. Thus the strategic direction mapped out in the IDP is matched with financial resources and delivery of services as specified in the PMS. The requirement for a SDBIP is stated in the MFMA, Section 69.3 (a) and is the responsibility of the Municipal Manager.

The SDBIP allows the budget to be implemented fully as it identifies:

o The Strategic Imperative – Through links with the IDP. o The Financial Imperative – Through links with the budget. o The Performance Imperative – Through links to the PMS.

Municipalities must take into account the multi-year Salary and Wage Collective

Agreement for the period 1 July 2012 to 30 June 2015. The agreement provides for a wage increase based on the average CPI for the period 1 February 2012 until 31 January 2013, plus 1.25% for the 2013/14 financial year. Municipalities are therefore advised to provide for increases related to salaries and wages for the 2013/14 budget year of 6.85% (5.6% + 1.25%). SLM has duly complied with this recommendation in its draft 2015/2016 budget.

Bulk electricity purchases: SAKHISIZWE LM has assumed a tariff increase of 8% from ESKOM and will increase its tariffs with 8% as determined by NERSA;

IDP

o Monthly Reports o Mid-year

Performance Assessment

o Annual Report

Budget

Performance Management System

SDBIP Service Delivery Targets

Performance Indicators

Revenue and expenditure by

voltexpenditure By Vote

Employee contracts

and annual performance

agreements for the

Municipal Manager

and General Managers


IDP REVIEW 96/213

Other expenditure: in order to accommodate the increases in salaries, bulk purchases, debt impairment and depreciation, it means that all other expenditure will increase at a reduced rate or maintained at the current levels;

Sakhisizwe Local Municipality will continue with its current powers and functions;

The Budget is based on current service levels.

Government grants for the years 2013/2014 to 2014/2015 are as per the Division of Revenue Act, assuming that all allocations will be received;

The inflation rate has been estimated at 5.6% per annum;

Tariff increases relating to services are as follows: Rates = 6.00 %

Refuse = 6.00 %

Water = 6.00 %

Sewerage = 6.00 %

Electricity = 7.39 %

Municipal Tariff Guideline on Electricity price increase for 2014/2015 is as follows: On 19 November 2013, the National Energy Regulator of South Africa (NERSA) approved a guideline increase for municipalities as follows: A guideline increase of 7.39% which based on the following assumptions:

Bulk purchases have been increased by 8.06% in line with Eskom’s electricity tariff increase to municipalities;

A consumer price index (CPI) of 5.5%;

Salary and wage increases of CPI plus 1%, as indicated in Circular No.6/2012: Salary and Wage Collective Agreement;

Repairs and maintenance, capital charges and other costs have been increased by the CPI.

6.3.1 Objectives of the 2015/2016 budget process

To maintain financial viability and stability.

To be based on the needs of local citizens as identified through the IDP process.

To be based on realistic anticipated revenue

To have a balanced and credible budget

To improve quality service delivery

To promote job creation

Skills development.

Rural development

Fighting crime and corruption

6.3.2 Approach adopted to 2015/2016 budgeting

This year’s budget is informed by the following principles

Zero based budgeting

Incremental budgeting

Combination of Zero Budget and incremental Budget

Revenue based budgeting

6.3.3 DORA Allocations 2014/15 - 2016/17


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NATIONAL DORA ALLOCATIONS

Year Year Year

Description 2015/2016 2016/2017 2017/2018

Direct

Equitable Share 56 481 000 56 121 000 54 027 000

Councillor Remuneration 3 100 000 3 241 000 3 384 000

Finance Management Grant (FMG) 1 600 000 1 625 000 1 700 000 Municipal System Improvement Grant (MSIG) 930 000 957 000 1 033 000

Municipal Infrastructure Grant (MIG) 17 989 000 18 550 000 19 390 000 Integrated National Electrification Programme Grant (Municipal) 4 000 000 Expanded Public Works - Programme Integrated Grant 1 000 000

85 100 000 80 494 000 79 534 000

Indirect

Integrated National Electrification Programme Grant (Eskom) Water Services Operating Subsidy Grant Neighbourhood Development Partnership Grant

Municipal Disaster Grant MIG Allocation for District Municipalities 19 928 000 20 788 000 22 077 000

19 928 000 20 788 000 22 077 000

Direct (Other)

Water: 67% of Total Allocation (CHDM) Sanitation: 67% of Total Allocation (CHDM)

- - -

105 028 000 101 282 000 101 611 000


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PROVINCIAL DORA ALLOCATIONS

Year Year Year

Description 2014/2015 2016/2017 2017/2018

Local Economic Development (LED) Capacity 117 000 112 000 110 000 Expanded Public Works Programme (EPWP)

Library Subsidies 369 000 369 000 369 000

369 000 369 000 369 000

6.3.4 MTREF revenue budget for Sakhisizwe LM.

The following table gives account of planned expenditure in terms of the Sakhisizwe MTREF budget for the next 3 years.

Sakhisizwe Medium Term Revenue & Expenditure Framework (2014/15 -2016/17)

Standard Classification Description

2014/17 Medium Term Revenue Framework

2014/15 2015/16 2016/17

Municipal governance and administration

R 62 872 277 R 73 399 446 R 73 855 087

Executive and council R 2 960 000 R 3 091 000 R 3 228 000

Mayor and Council R 2 960 000 R 3 091 000 R 3 228 000

Municipal Manager R - R - R -

Budget and treasury office R 59 782 277 R 70 187 236 R 70 499 331

Corporate services R 130 000 R 121 210 R 127 755

Human Resources R 15 000 R - R -

Information Technology R - R - R -

Property Services R 115 000 R 121 210 R 127 755

Other Admin R - R - R -

Community and public safety

R 3 302 050 R 3 460 435 R 3 627 372

Community and social services

R 434 550 R 438 090 R 441 821

Libraries and Archives R 371 350 R 371 477 R 371 611

Museums & Art Galleries etc.


IDP REVIEW 99/213




2014/15 2015/16 2016/17

Community halls and Facilities

R 30 000 R 31 620 R 33 327

Cemeteries & Crematoriums R 12 000 R 12 648 R 13 331

Child Care

Aged Care

Other Community

Other Social R 21 200 R 22 345 R 23 551

Sport and recreation R 500 R 527 R 555

Public safety R 2 817 000 R 2 969 118 R 3 129 450

Police

Fire

Civil Defense

Street Lighting

Other R 2 817 000 R 2 969 118 R 3 129 450

Housing R 50 000 R 52 700 R 55 546

Health R - R - R -

Clinics R - R - R -

Ambulance

Other

Economic and environmental services

R 25 037 000 R 19 717 924 R 20 428 948

Planning and development R 23 631 000 R 18 236 000 R 18 867 000

Economic Development/Planning

R 167 000 R 112 000 R 110 000

Town Planning/Building enforcement

R 23 464 000 R 18 124 000 R 18 757 000

Licensing & Regulation

Road transport R 1 406 000 R 1 481 924 R 1 561 948

Roads R 1 406 000 R 1 481 924 R 1 561 948

Public Buses

Parking Garages

Vehicle Licensing and Testing

Other


IDP REVIEW 100/213




2014/15 2015/16 2016/17

Environmental protection R - R - R -

Pollution Control

Biodiversity & Landscape

Other

Trading services R 39 260 719 R 41 463 483 R 43 199 766

Electricity R 10 571 500 R 11 142 361 R 11 744 048

Electricity Distribution R 10 571 500 R 11 142 361 R 11 744 048

Electricity Generation

Water R 16 341 720 R 17 905 794 R 18 505 794

Water Distribution R 16 341 720 R 17 905 794 R 18 505 794

Water Storage

Waste water management R 7 812 000 R 7 634 911 R 7 911 364

Sewerage R 7 812 000 R 7 634 911 R 7 911 364

Storm Water Management

Public Toilets

Waste management R 4 535 500 R 4 780 417 R 5 038 560

Solid Waste R 4 535 500 R 4 780 417 R 5 038 560

Other R - R - R -

Air Transport

Abattoirs

Tourism

Forestry

Markets

Total Revenue R 130 472 047 R 138 041 288 R 141 111 172


IDP REVIEW 101/213

6.3.5 Sakhisizwe MTREF expenditure budget in support of this IDP

Expenditure 2015/2016

Employee Related Costs 32 571 186

Remuneration of Councillors 5 558 928

Bad Debt Provision 4 180 120

Depreciation 9 097 000

Repairs & Maintenance 3 298 000

Interest Paid 396 636

Bulk Purchases 9 293 160

Contracted Services 1 365 000

Grants & Subsidies Paid 4 572 000

General Expenditure 22 232 231

Total 92 564 261


IDP REVIEW 102/213


IDP REVIEW 103/213

6.3.6 MTREF budget by vote.

EC138 Sakhisizwe - Table A3 Budgeted Financial Performance (revenue and expenditure by municipal vote)

Vote Description Ref 2011/12 2012/13 2013/14 Current Year 2014/15 2015/16 Medium Term Revenue &


R thousand Audited

Outcome Audited

Outcome Audited


Adjusted Budget

Full Year Forecast

Budget Year 2015/16



Revenue by Vote 1

Vote 1 - Executive and council 1

023 2

100 2

378 2

960 2

960 2

960 3

100 3

241 3

384

Vote 2 - BUDGET AND TREASURY 41

386 41

411 48

452 59

732 56

493 56

493 65

633 65

640 64

005


38

263

174

130

90

90

90

79

83


123

194

138

167

167

167

167

112

110


654 47

024 51

285 56

795 41

268 41

268 35

575 30

773 32

261

–

– –

–

–

–

–

–

–

Total Revenue by Vote 2 83

112 95

805 108

190 126

422 107

618 107

618 111

403 107

039 107

399

Expenditure by Vote to be appropriated 1

Vote 1 - Executive and council 13

002 15

622 16

724 17

902 17

532 17

532 19

013 19

980 21

038

Vote 2 - BUDGET AND TREASURY 10

702 10

888 19

748 14

090 15

302 15

302 16

321 17

082 18

001

Vote 3 - CORPORATE SERVICES 6

777 8

811 7

916 8

134 8

346 8

346 8

688 9

150 9

614

Vote 4 - PLANNING & DEVELOPMENT 1

905 2

403 1

796 2

056 1

865 1

865 1

920 1

835 1

932


208 38

121 62

157 47

089 34

889 34

889 29

108 28

810 30

337

–

– –

–

–

–

–

–

–

Total Expenditure by Vote 2 75 306

86 053

123 097

102 333

92 052

92 052

89 664

92 275

97 143

Surplus/(Deficit) for the year 2 7 806

9 752

(14 907)

24 089

15 566

15 566

21 739

14 763

10 256

Sakhisizwe Local Municipality – IDP Review

2015 - 2016

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6.3.7 Sources of MTREF budget by vote

Revenue 2015/2016

Property Rates 4 735 000

Service Charges 15 040 000

Rental of Facilities & Equipment 1 076 000

Interest Earned External Investments 456 000

Interest Outstanding Debtors 2 375 000

Fines 24 500

Income from Agency Services 899 450

Gov Grants & Sub – Operational 64 709 000

Gov Grants & Sub - Capital 21 089 550

Other Income 3 778 700

Gain on Disposal of Assets 118 992

Total 114 302 792

6.3.8 Sakhisizwe Capex by vote - MTREF

Description Amount

Office Furniture 350 000

Computer Equipment 150 000

Tools & Equipment - Roads 10 000

Sakhisizwe Local Municipality – IDP Review

2015 - 2016

IDP REVIEW 105/213

Tools & Equipment - Electricity 10 000

Description 697 Amount

DME 4 000 000

MIG- Ward 1 – Elliot Streets 4 964 550

MIG – Ward 3 – Xhonya to Macangceni access road 1 875 000

MIG – Ward 4 – Qokolo to Koppitjie access road 6 000 000

MIG – Ward 8 – Ndambane access road 2 500 000

MIG – Ward 9 – Makhwetshubeni access road 1 750 000

TOTAL 21 089 550

COUNCIL EXPENDITURE

SPU 2 000 000.00

ECDC 10 000.00

ISDR 50 000.00

TOTAL 2 060 000.00

SURPLUS/DEFICIT

Operating Revenue 114 302 792

Less: Operating Expenditure 92 564 261

Less: Capital Expenditure 21 609 550

NET SURPLUS / (DEFICIT) 128 981


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6.3.9 The 3-Year Infrastructure Plan as per Technical services

Form ID No (if available)

Project Number Project Name

Approved MIG Amounts

Ward Component

Projects Category

MTREF PERIOD

2013-2014 2014-2015 2015-2016

152905 MIG/R/EC/4312/09/11

Cala Gravel Roads and Storm water Phase 3

R 5 792 000 5 B Roads and Storm water

R 174 650

181708 CS/EC/7678/09/10 Establishment of Cala Landfill Site Phase 1

R 2 832 188 5 P Solid Waste R 2 717 000

178763 MIG/CS/EC/7676/09/10

Construction of Ward 7 Community Hall

R 1 992 211 7 P Community Services

R 147 793

181705 MIG/EC/2012/066 Provision of Hawker Stalls, Upgrading of Bashee Street & Taxi Rank

R 4 716 787 4 & 2 B & E LED R 4 000 000

R 716 787


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Ward Component

Projects Category

MTREF PERIOD

2013-2014 2014-2015 2015-2016

195706 MIG/EC/2012070 Cala Roads and Storm water Phase 3

R 5 933 303 4 B Roads R 3 100 000

R 2 833 303

165691 R/EC/6704/08/10 Cala Town to Qokolo and Kopitjie Access Road

R 3 898 331 4 B Roads R 3 723 682

170912 MIG/R/EC/7572/09/10

Old Location Street Projects Phase 1

R 5 382 468 1 B Roads R 3 901 075

R 1 500 000

181519 MIG/R/EC/6757/09/10

Takalani Township Access Road

R 1 991 220 1 B Roads R 402 000

212731 Registered Establishment of Cala Landfill Site Phase 2

R 8 369 910 4 P Landfills R 1 906 697

R 1 000 000


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Ward Component

Projects Category

MTREF PERIOD

2013-2014 2014-2015 2015-2016

219407 MIG/EC/1628/RST/09/10

Cala Town to Qokolo and Kopitjie Access Road Phase 2

R 8 600 000 4 B Roads R 1

R 1 500 000

R 1 000 000

218822 Registered Provision of Hawker Stalls, Upgrading of Bashee Street & Taxi Rank Phase 2

R 17 350 000 4 & 2 B & E LED R 1 500 000

R 4 000 000

176069 MIG/R/EC/6097/09/09

Cala Reserve Access Road

R 2 907 081 6 B Roads R 750 000

R 2 295 463

217706 Registered Community Hall Ward 8

R 2 020 000 8 P Community Services

R 800 000

R 1 220 000


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Ward Component

Projects Category

MTREF PERIOD

2013-2014 2014-2015 2015-2016

166746 MIG/R/EC/5093/08/09

Makhwetsubeni Access Road

R 2 882 361 9 B Roads R 780 000

R 2 222 750

179395 MIG/R/EC/6603/09/10

Mthingwevu to Ndambane Access Road

R 4 967 550 8 B Roads R 764 000

R 4 000 000

165207 MIG/R/EC/5034/08/09

Xhonya to Macangceni Access road

R 2 872 455 3 B Roads R 750 000

R 2 000 000

166414 MIG/R/EC/5043/08/10

Polar Park Access Road

R 1 026 000 2 B Roads R 1 600 000

R 390 000

Planned funding allocations from DORA R 15 766 201

R 17 474 000

R 18 455 000


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6.4 Financial Strategies 2015/2016

Sakhisizwe Local Municipality is a developing municipality located in the rural areas of the Province of the Eastern Cape. Only a small percentage of its population is economically active which poses specific challenges regarding financial sustainability. Council operations must be conducted in a manner that will ensure that services will remain affordable and yet tariffs must be able to cover costs.

The Municipality does have a GRAP compliant asset register from the financial year 2008 – 2009. All infrastructure assets were valued and reflected at fair values. The current budget also provides for valuation and depreciation of all assets including capital projects like roads.

The valuation roll of the municipality is up to date and implemented on the financial system SEBATA.

The by-laws of the municipality have been gazette in January 2014.

a) Revenue Raising Strategy

The municipality has an adopted revenue enhancement strategy which is being implemented. Outstanding debt amounts to R49 million. Drastic steps must be implemented to have this amount reduced as it will eventually lead to cash flow problems. The target is that 90% of all billing must be collected.

The following are some of the more significant programmes that have been identified:

o The review and implementation

of the Credit Control & Debt Collection Policy. This policy and the relevant procedures detail all areas of credit control, collection of amounts billed to customers, procedures for non-payment etc.


of the Indigent Policy. This policy defines the qualification criteria of an indigent, the level of free basic services enjoyed by indigent households, penalties for abuse etc.


of the Tariff Policy. This policy will

ensure that fair tariffs are charged in a uniform manner throughout the Sakhisizwe Local Municipality area. Tariffs must remain affordable but also insure sustainable services.


of the Property Rates and Valuation Policy. This will ensure that a fair rates policy and an updated valuation roll is applied to the entire Sakhisizwe Local Municipality area and will aim to ensure that all properties are included in the municipality’s records. Furthermore the policy will ensure that valuations are systematically carried out on regular bases for all properties.


of the Improved Payment Strategy. This strategy aims at implementing innovative cost effective processes to encourage consumers to pay their accounts in full on time each month, including increasing the methods of payment and implementing on-line pre-payment systems.

o Integration of the IDP and budget process plans and further development and implementation of the AFS process plans

b) Asset Management Strategy

The following are some of the more significant programmes that have been identified: o The maintaining of the

asset management system. All assets must be captured on the asset management system on a monthly basis. The system must be maintained in terms of GRAP requirements.

o The review and update

of asset and risk insurance procedures and the renewal of the insurance portfolio. This programme will involve the identification of risks in conjunction with insurers and all


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Departments and the review and update of the asset and risk insurance procedure manual. It will also include the review of the existing insurance portfolio and the renewal of the insurance policy as per the renewal terms.

c) Capital Financing Strategy

The following are some of the more significant programmes that have been identified:

o The review and

implementation of the municipal loans policy. This policy will ensure that any borrowings taken by the Sakhisizwe Local Municipality will be done in a responsible manner and that the repayment and servicing of such debt will be affordable.

d) Projected staff growth and costs

After the 2011 Local Government Election the status of Sakhisizwe Municipality

changed from a plenary council to an executive council, which will result in an increase in the staff component.

Currently the municipality is using casuals to assist with service delivery of the refuse collection function. The option of appointing more permanent staff for the services needs to be investigated and can result in an increase in the staff component of the municipality with a financial implication.

e) Managing Global Financial Crisis Alternative mechanisms are being sought by the municipality to finance investment in infrastructure and acquiring of new infrastructure.

MFMA Circular 48 notes that the global economy is experiencing a sharp downturn, spreading from developed to developing countries. Its origins lie in macroeconomic imbalances of an unprecedented scale and therefore, the consequences are felt everywhere.

Given the current economic crisis, municipalities will need to take some very tough decisions in the course of preparing their 2012 – 2013 budget and MTREF. We have given priority to the following critical issues:

Focus Area Detail

Managing and enhancing all revenue streams, especially debtors.

Develop a revenue enhancement strategy and recovery plan.


Implement LED strategy which seeks to address job creation through support to SMME’s

Expediting spending on capital projects that are funded by conditional grants.

Develop a strategy through which all conditional grants are re-in fenced, and reported monthly to council

Customer Centre In a process of enhancing and expanding the customer and the Presidential Hotline System to include all the municipal sections.

6.5 Financial Policies for 2015/2016

The municipality has developed all its required statutory policies and they are being implemented.

General Financial Philosophy


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The financial policy of the Sakhisizwe Local Municipality is to provide sound, secure and fraud free management of financial services. The Budget and Finance Office has the following objectives:

Implementation of LG MFMA

Implementation of the LG Municipal Property Rates Act

Management of the Budget Process

Performance of the Treasury Function

Management of Municipal Revenue

Maintaining the Supply Chain Management Unit

Maintenance of Internal Financial Control

Production of Financial Performance Reports

To Retain the Financial Viability of the Municipality

To work towards an Unqualified Audit Report Herewith the list of the current budget and financial related policies of Sakhisizwe Municipality:

Budget Policy

Corruption and Fraud Policy


Bad Debt Write Off Policy


Indigent Policy

Cash & Investment Management Policy

Rates Policy

Tariff Policy




Loans Policy

Unforeseen & Unavoidable Expenditure Policy


Long term financial plan

MFMA Delegations Policy

b) Budget Policy

The aim of the policy is to set out the budgeting principles which the municipality will follow in preparing each annual budget, as well as the responsibilities of the chief financial officer in compiling such budget.

c) Tariff Policy

A tariff policy must be compiled, adopted and implemented in terms of Section 74 of the Local Government: Municipal Systems Act 2000, such policy to cover, among other things, the levying of fees for municipal services provided by the municipality itself or by way of service delivery agreements.

d) Rates Policy

In developing and adopting this rates policy, the council has sought to give effect to the sentiments expressed in the preamble of the LG Municipal Property Rates Act, namely that:

the Constitution enjoins local government to be developmental in nature, in addressing the service delivery priorities of our country and promoting the economic and financial viability of our municipalities;

there is a need to provide local government with access to a sufficient and buoyant source of revenue necessary to fulfill its developmental responsibilities;


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revenues derived from property rates represent a critical source of income for municipalities to achieve their constitutional objectives, especially in areas neglected in the past because of racially discriminatory legislation and practices; and

It is essential that municipalities exercise their power to impose rates within a statutory framework which enhances certainty, uniformity and simplicity across the nation and which takes account of historical imbalances and the burden of rates on the poor.

In applying its rates policy, the council shall adhere to all the requirements of the Property Rates Act no. 6 of 2004 including any regulations promulgated in terms of that Act.

e) Indigent Support Policy

The objective of Indigent Support Policy is to ensure the following:

The provision of basic services to the community in a sustainable manner, within the financial and administrative capacity of the Council; and

To provide procedure and guidelines for subsidization of basic provisions received from Central Government, according to prescribed Policy guidelines.

The Council also recognizes that there may be residents simply not able to afford the cost of full provision and for this reason the Council will endeavor to ensure affordability through:

Settings tariffs in terms of the Council Tariff Policy; which will balance the economic viability of continued service delivery; and

Determining appropriate service levels.

f) Credit Control & Debt Collection Policy

The purpose is to ensure that credit control forms an integral part of the financial system of the local authority, and to ensure that the same procedure be followed for each individual case.

g) Supply Chain Management Policy

The objective of this policy is to provide a policy framework within which the municipal manager and chief financial officer can institute and maintain a supply chain management system which is transparent, efficient, equitable, competitive, which ensures best value for money for the municipality, applies the highest possible ethical standards, and promotes local economic development.

By adopting this policy the council further pledges itself and the municipal administration, to the full support of the Proudly SA campaign and to the observance of all applicable national legislation, including specifically the:

Preferential Procurement Policy Framework Act No. 5 of 2000 and its regulations;

Broad Based Black Economic Empowerment Act No. 53 of 2003 and any applicable code of practice promulgated in terms of that Act; and

LG Municipal Finance Management Act No. 56 of 2003, including the regulations relating to the prescribed framework for supply chain management.

A paraphrase of the relevant provisions of the foregoing statutes is annexed to this policy.

Where applicable, the council also pledges itself to observe the requirements of the Construction Industry Development Board Act No. 38 of 2000 and its regulations.

The following committees exist for the execution of supply chain:

Bid specification committee

Bid evaluation committee

Bid Adjudication committee


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h) Accounting Policies

Sakhisizwe Local Municipality has submitted its Annual Financial Statements in time to the

Auditor General since the financial year ending June 2011. The municipality moved out of

disclaimers to a qualified opinion for the financial years ending June 2012 and 2013. The

municipality is striving towards an unqualified audit outcome in the future.

The following is a summary of financial policies that will require review in 2014/15

Budget Policy

Corruption & Fraud Policy


Debt Write-Off Policy


Indigent Policy

Investment and Cash Management Policy


Rates By-Laws Policy

Tariff Policy



Loans Policy

Unforeseen & Unavoidable Policy


MFMA Delegations Policy

7 LOCAL ECONOMIC DEVELOPMENT PROFILE

The council adopted its current LED strategy in July 2011 and has identified the need to review

it in line with changes in its baseline planning information and IDP priorities for 2012 -2017. The

strategy is valid until 2014. In the strategy the municipality sees its role in economic

development as primarily to create conducive environment for investment attraction and

leveraging of efforts for sustained growth and poverty alleviation. We do not see ourselves as

primarily responsible for job creation even though we identify as our inherent role the need to

plan and coordinate economic development that seeks to achieve job creation and other

objectives. As required by the Regulation on the systems Act, we shall comply with the national


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KPA requiring us to monitor measure and report on how many jobs (opportunities) we created

as part of rolling-out our capital expenditure programmes

7.1 General Indicators for economic development

In our chosen role, we seek to influence, monitor and track our performance in the following economic development indicators:

7.1.1 Gross Development Product

The overall economy of Sakhisizwe has experience less than a percentage growth in the last decade (1996 -2008). This situation must be turn-around if we are to curb compounding problems of unemployment, service backlogs and poverty.

The gross develop product is estimated by 2008 (Global Insight) to be approximately R463 million.

The figures below compare SLM to other LMs in the district in terms of regional contribution to GDP and GVA using recent statistics from Global Insight 2012.


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7.1.2 Employment

Unemployment is an important indicator of economic development. Our unemployment rate is estimated to be 36% (1official definition). This situation is compounded by lack of efficiencies in our employment industries and sectors of the economy.

Off the 9 broad sectors of the economy that Global Insight researched in 2008, only less than four actively contribute to our GDP and Employment. The figure below gives a comparative distribution of employment by sectors.

1 Official definition of unemployment includes persons who are economically active and unemployed but

not actively seeking employment.


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The major contributing sector to employment is community and domestic services followed by agriculture and trade. In our economic development strategy, we are prioritizing agricultural development along with Tourism to achieve high impact on job creation and poverty alleviation.

It is also our intention to improve diversification in our active sectors so that we can minimize exposure caused by over-reliance on 2 key sectors. One of the targeted sectors for improvement are

Tourism development and Manufacturing with special focus on SMMEs. Currently Sakhisizwe enjoys a tress index of 79,7 which is slightly better than that of the region at 65,12.

The table below gives anecdotal job demand profile by ward within the Sakhisizwe municipality. The figures used here are drawn from the recently adopted report of the ward based planning and its research conducted in 2012.

Job Creation: Ward 1 Ward 2 Ward 3 Ward 4 Ward 5 Ward 6 Ward 7 Ward 8 Ward 9 Total

Employed in formal

sector 2,076 997 883 1,438 1,416 730 355 338 719 8,952

Immediate job

creation

(unemployed above

age 15)

4304 3246 3609 2836 4239 2531 2562 2750 2551 28,628

New Demand in

2017 (25% of

current 10-14 age

group)

210 205 245 148 252 161 191 195 174 1,779

Employable persons

above age 15 at

present

5187 4129 4492 3719 5122 3414 3445 3633 3434 36,575


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The research further suggests that the demand for jobs will increase as new entrants into the economically aged

population are anticipated by 2017. The table below gives estimation of the projected demand by 2017.

Projected Demand by 2017 by sector

Ward 1 Ward 2 Ward 3 Ward 4 Ward 5 Ward 6 Ward 7 Ward 8 Ward 9 Total

Small Business

Manufacturing

Centre – welding,

carpentry etc.

8 7 8 6 8 6 6 6 6

61

Small Business

Repair Centre –

Cars and electrical

appliances

8 7 8 6 8 6 6 6 6

61

Small Business

Retail Centre 8 7 8 6 8 6 6 6 6

61

Small Business Agro-processing Centre – Food processing related units

8 7 8 6 8 6 6 6 6

61

Total by ward in 2017

4514 3451 3854 2984 4491 2692 2753 2945 2725 30,407

In order to achieve job creation and poverty alleviation goals of the strategy Sakhisizwe is currently partnering with strategic stakeholders to delivery critical projects using labour intensive methods as required

by EPWP policy.

7.1.3 Income & poverty distribution

Understanding income distribution is useful for profiling and determining extent of poverty and lifestyle trends.

Poverty is endemic in the SLM areas. The figure below illustrates this point by showing comparative levels of households living below poverty line among LMs in the district.

An estimated 56% of households earn just up to R2500 per month or R30, 000 per annum. The figure below gives a comparative distribution of households by income category (annual figures).


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The remaining 44% shown in the figure above to be earning a gross monthly income of R3500 and above can be regarded as middle class. This is the category of earners who should be targeted for middle income housing and higher levels of service for which the municipality may expect to earn revenues from. Unfortunately, this category of earners is still very low to be expected to cross subsidize the indigent class. Given that there is already a high dependency ratio among local population (65%) coupled with endemic poverty in which an estimated 1872 people are said to be living below a dollar (or R7.) a day, the local middle class earners are already pressured.

Human Development Index2 is also a useful indicator of lifestyle poverty. It measures people’s exposure to poverty by looking at their lifestyles. Sakhisizwe has an HDI of 0.41 which is lower than that of the region and the country. In order to improve this situation the municipality may have to implement effective development strategies aimed at facilitating better education, improved direct investments and employment opportunities.

The above figure compares SLM HDI to other LMs in the region.

7.1.4 LED Implementation Plans

Funding was lobbied from various potential funders and the CHDM committed to support the SLM in its endeavour to implement LED Strategy.

2 The Human Development Index (HDI) is a composite, relative index that attempts to quantify the extent of human

development of a community. It is based on measures of life expectancy, literacy and income. It is thus seen as a measure of people’s ability to live a long and healthy life, to communicate, to participate in the life of the community and to have sufficient resources to obtain a decent living. The HDI can assume a maximum level of 1, indicating a high level of human development, and a minimum value of 0.


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The agreement with CHDM makes the following proposals.

It is hereby proposed that funding be granted to the Sakhisizwe Municipality for

procurement and installation of street furniture, paving and greening of open spaces

within the Central Business Areas of the Municipality.

These grants will include inter alia:

The Municipal Infrastructure grant from Treasury (R16 595 000.00)

Waste reduction in towns from the Chris Hani DEA (R900 000.00)

Sakhisizwe Municipality has identified the transport nodes as the areas where greater development impact can be achieved. A total of 1200 square meters of brick paving to both Cala and Elliot taxi ranks will be constructed. Resting and recreational areas in a form of trees, public benches, 40 solar lighting and 75 trees bins in Cala will be constructed such that this infrastructure give better aesthetics and gives support to the commuters. It is the intention of the SLM to improve access and exit point in both towns. R1, 700 000.00 will be budgeted for improving these areas. Solar lighting along the major access road will be provided this assisting the reduction of crime and provision of safety to these areas. Further an amount of R4000000 has been budgeted to implement LED programmes in Sakhisizwe and create about 51 jobs. The breakdown of the amount is given here below. BUDGET BREAKDOWN ACTIVITY AMOUNTS Lighting and signage R 460 000 Paving to open spaces R 320 000 Construction of amenities open spaces R 3000 000 Stationary R 5 000 Administration costs R 30 000 Awareness campaigns R 40 000 Training R 145 000

8 MUNICIPAL INSTITUTIONAL DEVELOPMENT AND TRANSFORMATION PROFILE

This section deals with analysis of our state of readiness to deliver on our assigned constitutional as well as powers and functions mandate. It analyses the extent to which we have put in relevant systems, processes and tools to ensure smooth operations and development of the municipal organization.

8.1 Powers and Functions

Our mandate stems from the section 152 and 156 of the constitutions (Act 108 of 1996) coupled with the assigned powers and functions drawing from the schedules 4b & 5b. In terms of the schedules part B 4 and 5 of the constitution, local government has the following functions.


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Part B of Schedule 4 Part B of Schedule 5

1. Air pollution

2. Building regulations

3. Child care facilities

4. Electricity and gas reticulation

5. Fire-fighting services

6. Local tourism

7. Municipal airport

8. Municipal planning

9. Municipal health services

10. Municipal public transport

11. Pontoons, fairies, settees, piers and harbours excluding the regulations of international and national shipping

12. Municipal public works only in respect of the needs of the municipalities

13. Storm water management system

14. Trading regulations

15. Water and sanitation services (limited to potable water supply system, domestic waste water and sewerage disposal system)

16. Beaches and amusement facilities

17. Billboards and display advertisement in public places

18. Cemeteries, funeral parlors and crematoria

19. Cleansing

20. Control of public nuisance

21. Control of undertakings that sell liquor to the public

22. Facilities for the accommodation care and burial of animals

23. Fencing and fences

24. Licensing and controlling of undertakings that sell food to the public

25. Local amenities

26. Local sport facilities

27. Markets

28. Municipal abattoirs

29. Municipal parks and recreation

30. Municipal access roads

31. Noise pollution

32. Pounds

33. Public places

34. Refuse removals, refuse dumps and solid waste disposals

35. Street trading

36. Street lighting

37. Traffic and parking

Sakhisizwe municipality should be undertaking all the bolded items in the above list and where capacity does not exist, should be taking decisive steps to ensure such capacity. However, our main challenges are that we do not have sufficient capacity to undertake all the assigned powers and functions. This IDP review identifies a specific project to review the organogram and to fill the critical vacant and budgeted positions in the approved organogram so as to ensure improved operational and administrative capacity.


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8.2 Institutional Operational Strategic Analysis

A Strategic Planning was held at Inkwenkwezi lodge in march 2015 to provide a platform for the institution to introspect and assess progress with regards to their operational performance while also identifying strategic gaps that need to be rectified in order to improve overall organizational performance. The session was attended by the municipal officials and management as well as various strategic stakeholder partners of SLM.

Each line functional department was requested to conduct a self-diagnosis (SWOT analysis & state key achievements and shortfalls relating to its mandate) as a basis for discussion at the strategic planning session.

Below is a summary of the outcome of the diagnostic assessment and issues raised at the strategic planning session.

Community Services

STRENGTHS WEAKNESSES

Positive relations with relevant

Sector Departments

Positive relations with all

Community Stake Holders.

Political Stability.

Managerial Unity.

Positive Relations with CHDM,

Neighbouring Municipalities and

Provincial Government.

Progressive Support from SALGA

Utilisation of aging machinery.

Under-budgeting.

Under-staffed.

Lack of proper public toilets in both units.

Lack of relevant books in our Public Libraries.

Security provision.

OPPORTUNITIES THREATS

Creation of more jobs.

Expanding our operational space.

Earning more funding through

lobbying.

Provision of a more decent service

to communities.

Training of our work force.

Strengthening of public

participation.

Infrastructure improvement.

Strengthening of our anti-corruption

campaign.

Illegal land invasion.

Illegal trading.

Drug trafficking.

Burglary of Municipality properties.

Stork theft.

Diseases out-break.

Disaster vulnerability.

Potential take-over of authority by Foreign Nationals.


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Corporate Services


Adequate policy environment

Adequate organogram in line with

municipal vision.

Transparent recruitment and Selection

process

Work Attendance: Competent

management complement with middle and

lower management

Non-compliance with departmental

policies.

Staff at lower levels do not share the

vision of the municipality

Insufficient funding to fully populate the

organogram.

Lack of clear controls to mitigate risks

during recruitment processes (interests,

fraudulent qualification)

Recruitment/current staff complement not

aligned to the EEP of the Institution.

Underutilization of personnel to the

advantage of this Institution

Lack of proper Registry – ineffective

records management.

Inability to attract and retain scarce skills

Ineffective management of fleet

Ineffective council support services


Review of policies to improve on

weaknesses

Population of the approved and budgeted

organogram.

Recruitment of required skills.

Registry: Local government assistance is

in abundance.

Attendance: To apply policies objectively

Improvement of labour relations within the

municipality

Non co-operation from law enforcement

agencies

Attraction of our developed personnel by

municipalities with high salary packages

Political instability within political parties


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5.3 Integrated Planning & Economic Development (IPED)


IDP coordination skills

Credible Integrated Development

Plans for the past 3 years

Poorly capacitated line function in the

organization (no HODs, insufficient staffing,

only one person in the entire department, lack

of equipment to undertake required activities

(GIS equipment, Surveying - pegging and

proper documentation etc.)

Unclear definition of planning activities

between LED, Housing, Spatial Planning &

IDP, etc.

Lack of integration of planning

Lack of adequate funds & resources

No staff to do inspections (accentuating the

risk of Town Planning & Development

transgression)

Unable to fully implement Council mandates

for IDP, SPLUM & SDF (Lack of funds)

Lack of capacity to development & implement

require policies for Land Use Management,

Town Planning Control etc.


Existing plans – able to produce

some key strategic planning

instruments (IDP, LED Strategy, SDF

etc.)

Good relations with district & other

government spheres – support and

collaborative work on areas of

planning, environmental

management, LED & Development

Control

SLM has a simple Spatial &

Economic Structure - ease of

diagnosis of problems

Non-alignment of plans with sector

departments


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Budget and Treasury


Good Policy development

Competent management complement with

middle and lower management.

Municipalities are able to keep financial

records up to date with bank reconciliation

done monthly.

MFMA Compliance

The water meter readings are done

electronically with devices.

Pre-Paid Electricity: The town in Elliot has

converted to pre-paid electricity.

Municipality is grant dependant. Own

revenue needs to be increased.

Ineffective expenditure management

(telephone, subsistence and travel, overtime

payments,

Late payment of creditors i.e. after 30 days

from date of invoice – audit query.

Policies not reviewed.

Noncompliance with supply chain

management policy and/or regulations

Late submission of financial reports to

Provincial and National Government – non-

compliance.

OPPORTUNITY THREATS

Debt Collection at Cala needs to be

improved.

More pre-paid points in Elliot, one must be

a 24 hour service.

Traffic department must create more

revenue.

Plant must create revenue for the

municipality and those funds to be used to

maintain infrastructure in the rural areas.

Rent of municipal properties must be at

market related prices.

Municipality is grant dependant. Own

revenue needs to be increased.

Qualified audit opinion

Non-payment of municipal services by

community and government departments


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Office of the Municipal Manager


Good working relations with the office of

the Mayor

Sound trust and professional working

relations with management

Management able to meet regularly as

planned

All senior positions are almost filled with

the exception of the IPED position which is

being filled

Existence of a Strategic Planning Manager

operating as extension of the Office of MM

Lack of key strategic plans (e.g. Risk

Management Plan)

Outdated systems of performance

monitoring and review (PMS & SDBIP

require urgent review)

Municipality still unable to achieve an

unqualified Audit opinion

Lack of a strategic communications

strategy by the organization

Inability to attract and retain scarce skills


Willingness to work hard by management

and staff

Good political support to administration

Approved and budgeted organogram to fill

vacant strategic posts

Municipality remains solvent and

financially sound

Lack of Risk Management Plan and

regular risk reporting

Poor and almost non-existent

performance management culture in the

organization as whole

Limited budget and revenue base to

generate own revenue. SLM remains

overly reliant on grant funding and this

limits ability to deliver services at the

pace consistent with our backlogs


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Technical Services


Availability of Plant and Machinery

Fully functioning Electricity Unit

Availability of operational Vehicles

No Functional PMU

Poor planning – non availability of

maintenance material

Poor project and contract

management

Environmental impact assessments

not always conducted

Staff capacity gap including

maintenance teams – ineffective

capacity building

Shortage of equipment – aging

operational vehicles

Staff shortage – non-availability of

staff in critical positions, (end up

using temporal workers )

Delays in Supply Chain Process

Limited Budget Allocation Compared

To Demand

Non Availability of Revenue

Enhancement Strategy

Poor Inventory Control

Non Availability of Customer Care

Policy

Appointment of non-performing

service providers

Breaching of Contract by Non-

Compliance to DWA standards


Skills development still remain a high

priority within senior management

Plant available to increase revenue

collection

Political backing in infrastructure

development

Withdrawal of conditional grant

funding by National Treasury

Community protests due to non-

delivery of services – state backlog

Over-pricing and collusive bidding

by service providers


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Motivate Rate Players

Beef Up Revenue in Cala Unit

Complying With Blue & Green Drop

Programs

Political Backing in Infrastructure

Development

Utilize Sabata System For Maximum

Revenue Collection

Ageing Infrastructure - limited

budget for maintenance of plant and

equipment, lack of maintenance

plan

Extreme Weather Conditions

Lack of Protective Clothing Suitable

For The Type of Operation

8.3 Organizational Arrangement - organogram

In order to give effect to the implementation and administration of the above mandate it is both necessary and imperative to put in place a relevant institutional structure and administration. The organisational structure was adopted by the Council in 2012. It provided for approximately 250 posts, 162 filled post and 52 vacant posts

Sakhisizwe has 6 departments namely:

a) IPED b) Municipal Managers (incorporating Strategic Support) c) Technical Services Department d) Community Services Department e) Corporate Services Department f) Finance Department

All identified section 56 positions in our organogram are filled except for the vacant position of IPED which is being filled. The figure below gives a summarized illustration of the current top organizational structure at Sakhisizwe LM. A Detailed organogram is attached as annexure-0 to this document. It shows the key positions identified to ensure full operational and institutional response to all our mandates


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9 GOOD GOVERNANCE & PUBLIC PARTICIPATION PROFILE

9.1 IDP reviews & MEC Assessment Response Plan

This document represents an IDP review for implementation in 2015/2016. It is revised in accordance with among others the points that were raised in the previous report of MEC assessment.

Following the receipt of the assessment report from Provincial department of local government and traditional affairs, the planning task team set out a process to attend to all concerns raised.

This report is drawn in accordance with the flow of the assessment guideline and attempts to respond directly to all concerns raised.

9.2 Governance systems

The municipal council is the highest decision making body in the organization. It is chaired by the Speaker. Under the new council arrangements Sakhisizwe has both a Council Speaker who is not the same as Mayor as was the case before where the same person played the role of both Mayor and Speaker.

In this type of governance structure the protocol dictates that decisions are made by council supported by its executive committee.

At least council seats every quarter unless a need arise for a special council meeting which is often called at the request of the speaker. Council takes decisions on all aspects of municipal governance and ensure that management implements their decisions.

An IDP is adopted together with a 3 year budget (+SDF, SDBIP & PMS) at the beginning of the council term to guide municipal decision for implementing development, regulating local affairs and guiding administration.

In order to manage the day-to-day routine tasks of governance, Sakhisizwe has put in place committees headed by portfolio councillors and linked to administrative line functions. These committees work with managers to implement IDP and monitor compliance with council policies and decisions. In the course of implementation, operations interface with external stakeholders through management representations in various forums.

The following HR Policies were adopted for 2014/2015 financial year:

Leave Policy, Recruitment and selection Policy, HIV/AIDS Policy, Employment Equity Policy, Disciplinary, Grievance and Procedure Policy, Overtime Policy, Policy Regulating Absenteeism, Subsistence Policy Transport Policy, Induction Policy Training and Development Policy, Acting Policy, Bereavement Policy, Long Service Policy, Public Participation Policy, Rules of Order, Sexual Harassment Policy, Customer Care Policy.

The Sakhisizwe Municipal Council also adopted the HR Plan, Employment Equity Plan, Training and Development Plan and Staff Retention Strategy

9.3 Inter- Governmental Relations

In compliance with intergovernmental relations act, SLM has established and is chairing (Mayor) local intergovernmental relations forum (IGR) which serves as a platform for facilitating bottlenecks and critical decisions aimed at fast tracking joint development objectives by government and its stakeholders. Sakhisizwe municipality has a functional IGR. This IDP has tasked the office of the municipal manager to ensure that an IGR is functioning and able to meet and deal with critical developmental agenda as per its schedule.


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IGR meetings are held each and every quarter, Linked to this mandate to the office of the municipal manager is the requirement to ensure good working relationship with community

development workers (CDW) in all our wards.

9.4 Public Participation & Promotion of Local Democracy

In a bid to promoting effective involvement of communities and thereby implement the requirements of the systems act chapter 4, Sakhisizwe local council resolved to review all its future IDPs through a ward based planning approach. Sakhisizwe municipality established 90 ward committees. (10 per ward). They were inducted and are fully functional. They are kept abreast of information and are regularly capacitated in line with the Institutional WSP. Ward plans have been developed for all wards that existed prior to local government elections 2011 and are incorporated into this document.

A public participation strategy is in place and utilised to guide engagement between council, administration and community stakeholders. The strategy outlines key mechanisms recommended for enhancing community mobilization for effective participation in key municipal activities including planning, performance management and service delivery implementation processes.

A newsletter and regular mayoral report back Imbizos are also planned for the year ahead to enable constant flow of information between the council, its administration and local communities on the affairs of the municipality. Mayoral Imbizos are held every Quarter, IDP Rep forums and Road shows sit according to the IDP Process Plan.

9.5 Special Programmes

The municipality supports the transformation of our society through facilitating a range of interventions aimed at mainstreaming participation of the vulnerable groups in society. The following are key areas of that SPU will be implementing projects on in 2014 in order to promote the mainstreaming of the vulnerable groups in society.

Capacity Building SPU Co-ordinator

Stationery and running Costs

Women’s Forum

Elderly Forum

Disability Forum

Youth Council

Mayor’s Cup

Special Programmes Strategy

Children Advisory Forum

Sport Council

HIV/Aids Council

Social Cohesion

Sustainable Development Agenda and Climate change

9.6 Inter-municipal planning and joint delivery of strategic programmes

SLM collaborates with its neighbouring municipalities in implementing strategic programmes of mutual concern such as for example:

Tourism Heritage Route with Engcobo, Emalahleni and Intsika Yethu LMs + CHDM

Disaster Management and emergency relief

Discussions in preparation of the planned SDI (special development initiatives) within CHDM

Internal Audit shared function


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Performance Audit shared committee

District plans and implementation coordination task teams

9.7 Anti-corruption Strategy

SLM has adopted an anti-corruption stance and promotes anonymous reporting of any perceived corrupt activities by its employees and councillors or even by service providers engaged by the SLM.

Members of the public are also allowed to approach the office of the Mayor or Municipal manager with information if they feel that certain behaviours by our members are suspicious.

9.8 Audit Committee

The municipality is part of a shared arrangement with neighbouring LMs and CHDM to access services of a joint audit committee. This allows us to share costs and standardise approaches to our PMS.

At a recent strategic planning session held in March 2014 the municipality recommended to council that it considers appointing its own and independent audit committee in order to have better control and access to audit committee functions.

9.9 Customer care relations

In order to promote a good culture of cooperation between the municipality and its paying customers including all those who receive a service from Sakhisizwe, a customer relations framework will be developed. Suggestions at the consultative processes recommended the consideration of current offices in places like Elliott to be utilised as customer interface centres after the consolidation of administration in the new premises at Cala. It was also proposed through the IDP/SDF consultation processes that to give rise to the planned secondary nodal points in Lower Lafuta, a one stop centre be planned and developed in the near future so as to minimise the costs of accessing services to our rural households.

Good governance is a key priority for the municipality. Our emphasis will be on:

Implementing democracy through investment in public participation and ward capacity building programmes including ward based planning

Fighting tendencies of corruption in our system

Increasing trust and support from our communities and also ensuring the maintenance of a good image and profile for the municipality

Implementing community outreach initiatives such as those activities undertaken in the special programmes unit (focusing on youth, women and disabled)

Attainment of a clean audit outcome within two prior to installation of the next council

Putting in place effective systems and processes for improving council oversight and administrative accountability through implementation of functional PMS and SDBIP regular reporting

The main challenges for good governance stem from the reasons that were observed in the consultative processes which necessitated the above focus. Key challenges for 2012/13 will be the finalization of the matter relating to our municipal manager position, lack of HR capacity in critical areas of our functions such as LED and Engineering and also dealing with issues raised by auditor general in our previous report (discussed earlier in this document).


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10 SPATIAL DEVELOPMENT FRAMEWORK

Sakhisizwe Local Municipality has adopted its review SDF in March 2012. The SDF is valid until 2015/2016. The document is aimed at providing a spatial policy perspective to this IDP as well as guide future planning decisions about space development. This SDF is based on the following set of objectives and principles.

restructure spatially inefficient settlements;

promote the sustainable use of the land resources in the country;

channel resources to areas of greatest need and development potential, thereby redressing the inequitable historical treatment of marginalized areas;

take into account the fiscal, institutional and administrative capacities of role players, the needs of communities and the environment;

stimulate economic development opportunities in rural and urban areas; and

Support an equitable protection of rights to and in land.” The various principles and directives can be translated into a set of collective development objectives in accordance with the national agenda that form the overarching objectives of the Spatial Development Framework, namely -.

To promote sustainable development;

To promote efficient development;

To promote equitable development;

To ensure integrated development, and

To improve the quality and image of the physical environment.

10.1 Legal framework

The Systems Act is the overarching piece of legislation that guides and informs this SDF. In terms of Section 26(e) of the Local Government Municipal Systems Act (Act No. 32 of 2000), every Municipality is required to formulate a Spatial Development Framework as part of the contents of its Integrated Development Plan (IDP). The Local Government Municipal Planning and Performance Management Regulations (R. 796 of 2001) made in terms of the Municipal Systems Act determine the content of such a Spatial Development Framework. It requires the municipality to:

a) Identify the key spatial development features (trends and dynamics) currently applicable in the Sakhisizwe Municipality;

b) Establish clearly the objectives of the Sakhisizwe Municipality in relation to spatial development in its area of jurisdiction, with particular emphasis on clarifying the principles to be followed in the management of such spatial development in the area;

c) Identify the Municipality’s strategies and policies that are adopted to achieve its spatial development objectives. These should focus on establishing a clear hierarchy of settlement and delineating Special Development Areas, which are: -


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Areas where strategic development intervention is required (areas of particular development potential and/or areas where current development activities represent a development opportunity); and

Areas where priority spending is required (areas of special need)

d) Illustrate the above information on maps and plans; and

e) Set out basic guidelines for a land use management system in Sakhisizwe Municipality (i.e. how the Municipality anticipates that it will manage land use development and land use change over a five-year period).

Ensuring a uniform planning system

The Land Use Management Bill (2001) and the Green Paper on Development and Planning (1999) are particularly important guiding pieces of legislation for the SDF in that they seek to provide for the establishment of a new unitary planning system in SA. This new set of legislation will enable municipalities to better understand the required content of spatial and land use management plans and thus level the ground for smooth implementation of the LG Systems Act: 2003 (as amended)

Providing a national spatial planning framework

The National Spatial Development Perspective is a new initiative by government which sets a national framework to guide infrastructure investments and development decisions. In order to guide development agencies understand their potential and therefore choose appropriate spatial development strategies for their growth, the NSDP suggests six categories of (covering about 315 magisterial districts) areas (spatial development potential):

Innovation and experimentation (27) High value differentiated goods (45) Labour intensive mass produced goods (62) Public service and Administration (73) Tourism (60) Service and Retail (48)

In terms of the analysis of Sakhisizwe potential index, the area has potential in Agricultural development, Tourism resources such as the Cultural Tourism industry and less potential in the Innovation and experimentation through its limited urban centre with no developed consumer base.

10.2 The provincial framework

The Eastern Cape Spatial Development Plan and especially the EC Growth and Development Strategy provide a guiding framework for spatial economic development in the province as whole. In terms of the EC SDF there are three levels at which government is planning to intervene in the development of the province’s spatial economy. These are summarized in the diagram below:

Strategic policy framework to spatial investment

Level 1: Ensure access to basic need support – means the provision of municipal infrastructure at a basic level that is at least in line with the minimum acceptable level of service provision as dictated by adopted relevant policies of the district. Level 2: Build Capacity – implies investment at a higher level in middle order services, infrastructure and development needs in accordance with current state of assigned Powers and Functions of the LM (service infrastructure, market places, transport interchange facilities, human resource development & skills training etc.). Level 3: Targeted Focus Areas – implies investment at a still higher level in higher order services and infrastructure and this includes investments in areas that may not necessarily constitute the assigned powers and functions but within the context of essential development investment that are likely to generate significant socio-economic developmental spin-offs as


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deemed by the Local municipal council. (I.e. Investments in education, sports & recreation, tourism sector, the forestry sector etc). The EC PGDS identifies six key focus areas for priority spatial investments in the short term and these include the following:

a) Agrarian development and food security b) Fighting poverty c) Public sector transformation d) Infrastructure development e) Manufacturing diversification and Tourism

Human Resource Development

10.3 Overview of the SDF concept

The diagram below gives a spatial concept of the Sakhisizwe Municipal area.

Conceptual Framework

In terms of the concept, Sakhisizwe has key movement patterns as shown by the major routes depicted on the sketch, Open space system depicted in green and key development nodes in a hierarchical structure with two levels, viz primary and secondary nodes.

10.4 SDF proposals for Sakhisizwe LM

Agricultural Potential areas

It is proposed that the following activities be permitted in the high potential agricultural area:

Activities permitted in the high potential agricultural area Activity

Definition

Agriculture The cultivation of land for crops and plants or the breeding of animals or the operation of a game farm on an extensive basis on natural veld or land.

Agri-Industry and Agri-Processing

An enterprise for the processing of agricultural products on a farming unit or within a rural area owing to the nature, perishableness and fragility of such agricultural products (e.g. wineries, farm pack stores, etc.).

Agri-Village A private settlement situated within an agricultural area and where residence is restricted to bona fide farm workers and their dependents of the farms involved in the development.

Agri-Tourism A type of tourism in which travellers travel to rural areas to


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experience the activities and lifestyles of people living and working in the agricultural sector

Urban Edge It is proposed that based on the urban edge as demarcated in Paragraph 4.2 (page168 of SDF) for Cala and Paragraph 4.3 (Page 170 of SDF) for Elliot, the municipality should not entertain ad hoc, short term proposals for the amendment of the urban edge, unless a strategic change has taken place in the municipal and provincial context. It is proposed that in order to support the successful implementation of the urban edge, the municipality must also focus on employing the following strategies:

Management Zones along the urban edge. Well-functioning urban environments are structured around zones of diminishing intensity as it moves away from areas of highest opportunity. Typically the fringe of urban areas are characterised by what is termed the urban-rural transition zone, comprising low density urban development, low intensity, extensive land uses and semi-rural activities such as nurseries. The urban edge should therefore not denote a clear divide between urban and rural, but rather include management zones along the edge that makes provision for a gradual transition from an urban to a rural environment. The area directly inside the urban edge should look at lower urban intensities, while the areas directly outside the urban edge should make provision for semi-rural and rural residential activities.

Promoting Infill development refers to the identification of vacant land parcels within the demarcated urban areas, amongst existing developments, and developing these parcels of land according to their optimal development potential levels.

Promoting Densification in and around strategic locations is an important antidote to urban sprawl as it looks at providing high numbers of housing units in strategic, highly accessible locations with high levels of access to economic and social opportunities. If the housing demand, or part thereof, can be satisfied through centrally located high quality higher density residential development then there will be less demand for low density residential developments on the periphery. The secret to success for stimulating the demand for higher density residential living is the quality of the urban environment in which these developments are located. These areas should therefore be focus areas for public investment in infrastructure, social services, streetscape and urban design, open spaces and general high quality, positive performing urban environments.

Managed expansion refers to the gradual and incremental outward growth of a settlement (i.e. the so-called ripple effect), but within demarcated urban development boundaries (or urban edge), as opposed to leap frog developments that are not physically and functionally integrated with the main urban area.

Nodal Development It is proposed that the following principles apply to the development and management of nodes:

In order to support the effective development of nodes in the municipality, the development of urban non-residential land uses, such as business, retail, community facilities, and social services should be restricted to nodal areas.

Nodes should typically be located at the main access points as urban areas, typically at the intersection of a major mobility route and the major collector route.

These nodes should show a large degree of public investment in infrastructure, public domain and social services.

Nodes must be characterised by mixed-use, high intensity activity and higher density residential development (maximum FAR’s, coverage and height should not be restricted).

The manner in which parking in the nodal areas are treated is of importance. Large parking lots adjacent to streets should not be promoted. Buildings should be placed as close to street boundaries as possible


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Corridor development It is proposed that the activity spines should be characterised by the following –

High intensity, mixed land uses.

High density residential development, either directly adjacent to the street or within a distance of 200m from the activity spines.

The activity spines can be developed as continuous linear development areas or in the “beads-on-a-string” form. The nature of public transport and the length of the route should determine the development pattern. The longer the street the more the development pattern should focus on the beads-on-a-string form. Shorter distances are more conducive to continuous linear development.

Activity spines should show a large degree of public investment in infrastructure and the public domain.

Large parking lots adjacent to streets should not be promoted. Buildings should be placed as close to street boundaries as possible to facilitate pedestrian movement and to define and shape the public space.

Site layouts and building designs of individual developments must take cognisance of and support public transport and pedestrian movement.

Activity spines must achieve a balance between promoting access, creating pedestrian friendly environments, and accommodating mobility.

Industrial development zones It is proposed that the existing industrial areas should be intensified before new expansion is permitted. Once these areas are fully and optimally developed, the industrial areas can expand if land is available. The following guidelines apply to developments in the industrial areas:

The focus should be on industrial land uses, warehouses and commercial uses such as transport depots.

Small scale storage facilities that are typically found in the more rural areas should be developed in the industrial areas.

Supporting facilities, such as convenience shops, restaurants / canteens, support businesses (such as printers, stationers, day-care and banks), can be provided within the industrial area, provided that the scale of such a development is restricted to that of an ancillary use that does not and will not attract the general public.

Offices shall be restricted to administrative offices belonging to or directly linked to the activities established in the area.

Densification It is proposed that the following should apply to densification are the following:

Higher density development should be focused around and within walking distance from major activity areas and transport services.

Densities should decrease as the distance away from major activity areas increases. Higher densities in the wrong locations or which are removed from major activity areas and transport routes can be harmful to urban efficiency and sustainability.

Densification should capitalise on existing available infrastructure. The following strategic densification priority zones are proposed-

Around the Cala and Elliot CBDs.

Along Titsa Road Activity Spine.

Along Maclear Way Activity Spine. Development of new settlement ethos It is proposed that all future settlement developments that take place in the municipal area shall adhere to the principles of the policy document Breaking New Ground: A Comprehensive Plan for the Development of Sustainable Human Settlement. These include principles such as:

Residents should live in a safe and secure environment, and have adequate access to economic opportunities, a mix of safe and secure housing and tenure types,


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reliable and affordable basic services, educational, entertainment and cultural activities, health, welfare and police services.

Ensure the development of compact, mixed land use, diverse, life-enhancing environments with maximum possibilities for pedestrian movement and transit via safe and efficient public transport in cases where motorised means of movement is imperative.

Ensure that low-income housing is provided in close proximity to areas of opportunity.

Integrate previously excluded groups into urban areas and the benefits it offers, and to ensure the development of more integrated, functional and environmentally sustainable human settlements, towns and cities. The latter includes densification.

Encourage Social (Medium-Density) Housing.

Multi-purpose cluster concept will be applied to incorporate the provision of primary municipal facilities, such as parks, playgrounds, sports fields, crèches, community halls, taxi ranks, satellite police stations, municipal clinics and informal trading facilities.

Enhancing settlement design by including design professionals at planning and project design stages, and developing design guidelines.

Social housing must be understood to accommodate a range of housing product designs to meet spatial and affordability requirements.

Land use regulation outside urban edge It is proposed that the following principles apply when evaluating applications for developments outside the urban edge:

Uses should be rural in nature, or should require a rural setting in order to be functional or viable.

The development should not require extensive service infrastructure.

The development should not have any negative environmental impact.

The development should not create possibilities for other developments to establish in the area.

Uses that primarily service the local market.

Uses which are resource based.

Uses which are located at a defined and approved service delivery centre. It is proposed that land uses that can be permitted in the rural environment include:

Nature conservation/sensitive natural areas.

Agricultural activities.13

Tourism and related activities.

Conference and training facilities.

Recreational facilities which are essentially rural in nature.

Farm stalls and home industries.

Resource based industries.

Any other uses that in the municipality’s discretion fit in with the character of the area outside the urban edge, provided that such development adheres to the criteria set out above.

Tourism development Proposed tourism facilities and services, which may be permitted in the tourism focus areas, include-

Guest Houses and lodges.

Cultural Villages.

Environmental education centres.

Restaurants, tea gardens.

Wellness centre/spa.

Infrastructure that serves the tourism facilities It is proposed that the following principles apply to developments with a possible impact on cultural heritage:

All new developments should therefore consider heritage resources as part of the environmental impact assessment process.


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All developments that affect existing structures older than 60 years or those that have been afforded protected status must adhere to the provisions of the relevant legislation.

All gateways should be maintained as significant features. Signage along routes in the vicinity of gateways must be avoided.

Major landmarks should be conserved.

Historical sites such as forts, battlefields, cemeteries etc. should be well maintained.

Public spaces and CBD It is proposed that the following aspects receive projects are considered that will affect the town image and public spaces:

Entrances into Sakhisizwe urban areas, Cala and Elliot, should be celebrated through signage, monuments or other prominent features.

Strategic sites, which provide settings for landmarks, should be identified and utilised. Buildings located at these positions should have landmark qualities

Important views and vistas should not be obstructed by development.

Public urban spaces should be well designed in terms of their function and the role they play within the urban structure and community life.

Any development should make a positive contribution to the public environment, whether it is an urban or rural setting.

The placement of outdoor advertisements should be managed and coordinated.

Main roads should be developed as important public space elements and treated as such with the planting of trees, maintenance of sidewalks and the provision of well designed, coordinated street furniture such as dustbins, bollards, benches, taxi/bus shelters etc.

10.5 The overall framework for Sakhisizwe LM

10.6 Land Use Management framework (Cala & Elliot)

Cala Land Use Management framework


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Elliot Land Use Management framework


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11 KEY DEVELOPMENT PRIORITIES FOR 2015/2016

The following are key priorities and strategic development goals of SLM in 2015/2016

6) Service Delivery

Strategic Goal: Eradicate backlogs in order to improve access to services and

ensure proper operations and maintenance by 2016 and beyond.

Intended outcome: Sustainable delivery of improved services to all households (in

line with the term of council, 2012 – 2017)

7) Local Economic Development

Strategic Goal: Create an enabling environment that promotes the development of

the local economy and facilitate job creation by 2016 and beyond.

Intended outcome: Improved municipal economic viability (in line with term of

council, 2012 – 2016).

8) Financial Viability

Strategic Goal: To improve overall financial management in the municipality by

developing and implementing appropriate financial management policies,

procedures and systems by 2016 and beyond.

Intended outcome: Improved financial management and accountability (in line with

terms of council, 2012 – 2016)

9) Good Governance & Public Participation

Strategic Goal: Promote a culture of public participation and good governance by

2016 and beyond.

Intended outcome: Entrenched culture of accountability and clean governance (in

line with term of council, 2012 - 2016)

10) Municipal Institutional Development & Transformation

Strategic Goal: Improve organizational cohesion and effectiveness by 2016 and

beyond.

Intended Outcome: Improved organizational stability and sustainability (in line with the term of council, 2012 – 2017)


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SECTION C - VISION

This section outlines the desired future for the development of Sakhisizwe through determination of a strategic development vision, mission and values. It also sets clear

development objectives, strategies as well as intended projects to be implemented during the tenure of this IDP.

12 VISION

“Together with all communities and partners, we will provide a sustainable and

visible service delivery”

SECTION D - MISSION

13 MISSION

“Together with all communities, we will provide sustainable quality service delivery, skills

development and alleviate poverty through integrated development plan”

14 BROAD STRATEGIC DEVELOPMENT OUTCOMES

In order to realise our chosen vision we commit ourselves to achieving the following broad strategic development outcomes.

Sustainable service delivery & economic growth

Poverty eradication and job creation

Clean corruption-free governance, characterised by high performance culture

Functional developmental LG – good governance systems and public participation

Incremental capacity building and political maturity


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SECTION- E OBJECTIVES & STRATEGIES

DEVELOPMENT OBJECTIVES, INDICATORS & STRATEGIES FOR 2015/2016

Department: Corporate Services

SDBIP

REF

Key Focus Area

Strategic Objective

IDP Strategy Project/Activity ("Linked to

IDP")

Key Performance Indicators

(KPI's)

Unit of measure

Budget Location/W

ard Annual Target

Project Owner

Key Performance Area 3: Municipal Transformation and Institutional Development -WEIGHTING 50%

CORP 01

HR Management

To ensure an effective, efficient and compliant human resource function by 2016 and

Effective, efficient and economical human resource

function

Fill vacant posts in line with approved organogram

% of vacant and budgeted posts filled Reviewed organogram adopted by council - Yes/No

Percentage Yes/No

Opex Internal 100% of vacant and budgeted posts filled

Corporate Services Manager


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SDBIP

REF

Key Focus Area

Strategic Objective


IDP")


(KPI's)

Unit of measure

Budget Location/W

ard Annual Target

Project Owner

CORP 02

beyond Facilitate the Induction Programme for all new employees

% of new employees that attended induction programme

Percentage

Opex Internal 100% of new employees attended the induction programme .


CORP 03

Reviewal of HR policies

Reviewal of Human Resources policies

Number of HR policies reviewed and adopted by council

Number Opex Internal 4 HR policies reviewed and adopted by council.


CORP 04

Occupational Health and Safety compliance

Develop an Occupational Health Safety Policy and implementation plan

Occupational Health and Safety (OHS) Policy and implementation plan developed and adopted by council -

Yes/No Opex Internal Yes - Occupational Health and Safety (OHS) Policy and implementation plan developed and adopted



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SDBIP

REF

Key Focus Area

Strategic Objective


IDP")


(KPI's)

Unit of measure

Budget Location/W

ard Annual Target

Project Owner

Yes/No by council

CORP 05

HRD

Effective, efficient and economical

training and development

To build capacity of the municipal workforce and leadership through implementation of the WSP.

Number of councillors and employees capacitated through implementation of the WSP

Number Opex Internal 12 councillors and 8 employees capacitated through implementation of the WSP


CORP 06

To build capacity of the municipal workforce and leadership.

Number of EPWP interns that have completed periodic experiential training in the 2015/16 financial year

Number Opex Internal 4 interns completed periodic experiential training in the 2015/16 financial year.



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SDBIP

REF

Key Focus Area

Strategic Objective


IDP")


(KPI's)

Unit of measure

Budget Location/W

ard Annual Target

Project Owner

CORP 07

LABOUR RELATIONS

Compliant and conducive labour relations

Implementation of the labour relations policy

Number of labour forum meetings coordinated.

Number Opex Internal 4 labour forum meetings coordinated.


CORP 08

Employee Wellness

To continuously provide a health conscious, safe and supportive working environment for employees and councillors to improve productivity by 2016 and beyond

Effective and efficient wellness programmes

Implementation of the Wellness programme

Number of wellness activities coordinated and implemented.

Number Opex Internal 2 wellness activities coordinated and implemented.



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SDBIP

REF

Key Focus Area

Strategic Objective


IDP")


(KPI's)

Unit of measure

Budget Location/W

ard Annual Target

Project Owner

CORP 09

Performance Management

To continuously promote good governance, effective administration and service delivery by 2016 and beyond

Effective, efficient and compliant performance management

Implementation of the PMS Framework by compiling and submitting quarterly performance report.

Quarterly performance reports and POEs submitted to the MMs office by the 10th after the end of each quarter - Yes/No

Yes/No Opex Internal Yes - quarterly performance report with PoEs submitted to PMS section by the 10th working day after end of the quarter



IDP REVIEW 148/213

SDBIP

REF

Key Focus Area

Strategic Objective


IDP")


(KPI's)

Unit of measure

Budget Location/W

ard Annual Target

Project Owner

CORP 10

Council support

To continuousl

y ensure effective, efficient

and economical municipal

governance processes by 2016

and beyond

Effective and efficient council support services

To support council and related structures to function efficiently

Number of reports prepared on adherence/non-adherence to the institutional calendar in relation to institutional meetings (council, EXCO, portfolio committees, MPAC and MANCO)

Number Opex Internal 4 reports prepared on adherence/non-adherence to the institutional agenda in relation to institutional meetings (council, EXCO, portfolio committees, MPAC and MANCO)


CORP 11

Organizational Development

Effective and efficient council oversight

Implementation of council resolutions

% of Council Resolutions Implemented

Percentage

R0.00 Internal 100% of Council resolutions implemented



IDP REVIEW 149/213

SDBIP

REF

Key Focus Area

Strategic Objective


IDP")


(KPI's)

Unit of measure

Budget Location/W

ard Annual Target

Project Owner

CORP 12

Fleet Management

To ensure effective, efficient, economical and compliant (MFMA and GRAP) asset management by 2017 and beyond

Effective, efficient and economical fleet management function

Procure tracking System

Number of tracker devices installed

Number R 100,000.

00

Internal 5 Tracker devices installed.


Key Performance Area 4: Financial Viability - WEIGHTING 20%

CORP 13

Financial Management

To continuously ensure economical and prudent

Monitoring of the budget spending/expenditure

Monitor expenditure on departmental OPEX

% of actual operational expenditure to budgeted operational expenditure

Percentage

Opex Internal 100% actual operational expenditure to budgeted operational expenditure



IDP REVIEW 150/213

SDBIP

REF

Key Focus Area

Strategic Objective


IDP")


(KPI's)

Unit of measure

Budget Location/W

ard Annual Target

Project Owner

CORP 14

Fleet Management

spending of allocated financial resources by 2017 and beyond

Monitoring and control over Municipality's Fleet

% of actual expenditure on fuel to budget

Percentage

Opex Internal 90% of actual expenditure on fuel to budget


CORP 15

Managing Municipal Buildings

Asset Management

Effective and efficient management of lease agreements

Monitor the servicing of lease agreements

Number of quarterly reports prepared on servicing of leased municipal properties.

Number Opex Internal 4 quarterly reports prepared on servicing of leased municipal properties.


Key Performance Area 5: Good Governance and Public Participation - WEIGHTING 30%


IDP REVIEW 151/213

SDBIP

REF

Key Focus Area

Strategic Objective


IDP")


(KPI's)

Unit of measure

Budget Location/W

ard Annual Target

Project Owner

CORP 16

Audit action plan

To ensure achievement of an improved control environment and audit outcome by 2016 and beyond

Effective control environment and compliance

Implementation of the AG recommendations

% of AG action plans implemented

Percentage

Opex Internal 100% of AG action plans implemented


CORP 17

Compliance with Employment Equity Act

To continuousl

y ensure compliance

with legislation

with respect to Employment Equity and Basic Conditions

of Employment by 2016

EEP compliance and reporting

EEP compliance and reporting

Number EEP reports submitted to department of labour by 30 September 2015

Number Opex IDP 1 EEP report submitted to department of labour by 30 September 2015



IDP REVIEW 152/213

SDBIP

REF

Key Focus Area

Strategic Objective


IDP")


(KPI's)

Unit of measure

Budget Location/W

ard Annual Target

Project Owner

and beyond

CORP 18

Compliance with BCEA and HR Policies

To ensure compliance with Basic Conditions of Employment by 2017 and beyond

Effective and compliant management of leave

Management of Employee Leave Records

Number of leave monitoring reports submitted to user departments regarding compliance with accumulative 48 leave days maximum.

Number IDP 12 leave monitoring reports submitted to user departments regarding compliance with accumulative 48 leave days maximum.



IDP REVIEW 153/213

Department: Infrastructural Planning and Development

SDBIP

REF

Key Focus Area

Strategic Objective


IDP")

Key Performance

Indicators (KPI's)

Unit of measure

Budget

Location/Ward

Annual Target Project Owner

KPA: INFRASTRUCTURE DEVELOPMENT AND SERVICE DELIVERY [WEIGHT % = 50]

TS 01 Roads & Storm Water

Eradicate backlogs in order to improve access to basic infrastructure and services by 2016 and beyond

Through implementation of the infrastructure master plan and annual roads and storm water maintainance plan.

Maintenance of roads and storm water as per the roads and storm water maintainance plan

Percentage of implementation of the roads and storm water maintainance plan

Percentage

All wards 100% implementation of the roads and storm water maintainance plan

Manager Infrastructural Planning and Development


IDP REVIEW 154/213

SDBIP

REF

Key Focus Area

Strategic Objective


IDP")

Key Performance

Indicators (KPI's)

Unit of measure

Budget

Location/Ward


TS 02 PMU Implementation of MIG projects in line with the Infrastructure plan

Implementation of MIG projects in line with the Infrastructure plan using labour intensive construction & EPWP candidates

% completion of 4 roads per the MIG

Number All wards 100% completion of 4 roads (Ndambane 5.2kms, Makhwetshubeni 3.9kms, Xhonya-Macangcini 4.2kms and Qokolo-Kopotyi 2kms)


TS 03

Electrification

To ensure increase in households with access to energy by 2016 and beyond

Implementation of DME projects in line with electricity Infrastructure plan

Implementation of DME projects in line with Infrastructure plan

Percentage completion of DME projects per the infrastructure plan (Gubenxa and Moxongo villages)

Percentage

All wards 100% completion of DME projects per the infrastructure plan (Gubenxa and Moxongo villages).



IDP REVIEW 155/213

SDBIP

REF

Key Focus Area

Strategic Objective


IDP")

Key Performance

Indicators (KPI's)

Unit of measure

Budget

Location/Ward


TS 04 To improve lighting in all identified areas for community safety purposes by 2017 and beyond

Construction of high-mast lights in the urban area

Implementation of through service provider Construction of high mast and street lights in the urban area

Number of high-mast lights connected

Number All wards 4 high mast lights connected in the urban area


TS 05 To provide effective, economical and efficient electricity infrastructure by 2016 and beyond.

Develop and implement an electricity infrastructure maintenance plan

Implementation of the electricity infrastructure plan

Turnaround time to attend to reported electrical faults.

Turnaround time

Internal Reported electrical faults attended to within 2 days



IDP REVIEW 156/213

SDBIP

REF

Key Focus Area

Strategic Objective


IDP")

Key Performance

Indicators (KPI's)

Unit of measure

Budget

Location/Ward


TS 06 Housing Facilitate increased household access to appropriate and sustainable housing by 2017

Coordinate provision of human settlements

To coordinate and facilitate provincial initiatives on housing

Number of meetings attended

Number Four (4) meetings attended


KPA: GOOD GOVERNANCE AND PUBLIC PARTICIPATION [WEIGHT % = 30]

TS 07 Street lighting

To improve lighting in all identified areas for community safety purposes by 2017 and beyond

Development and implementation of the street lights and high mast lights maintenace plan

Development and implementation of the street lights and high mast lights maintenace plan

Percentage implementation of the street lights and high-mast lights maintenance plan

Percentage

100% implementation of the street lights and high-mast lights maintenance plan



IDP REVIEW 157/213

SDBIP

REF

Key Focus Area

Strategic Objective


IDP")

Key Performance

Indicators (KPI's)

Unit of measure

Budget

Location/Ward


TS 08 Municipal Governance

To have an improved system of monitoring and evaluation of performance in line with applicable legislation by 2017 and beyond

Implement, monitor and evaluate municipal performance

Ensure implementation, monitoring and evaluation of municipal performance

Number of quarterly reports prepared and submitted to the office of the MM on the 10th day after the end of the quarter

Number 4 quarterly reports prepared and submitted to the office of the MM on the 10th day after the end of the quarter


TS 09

Develop and implement municipal policies, procedures, strategies and bylaws for the Infrastructural Planning & Development Directorate

New policies developed and existing policies reviewed where necessary - Yes/No

Yes/No Yes - New policies developed and existing reviewed policies where necessary

Director Infrastructural Planning and Development


IDP REVIEW 158/213

Department: Community Services

SDBIP

REF

Key Focus Area

Strategic Objective


IDP")

Key Performance

Indicators (KPI's)

Unit of Measure

Budget Location/War

d Annual Target

Project Owner

KPA 1: BASIC SERVICE DELIVERY AND INFRASTRUCTURE [WEIGHT % = 20]

COM 1

Safety and Security

To facilitate and contribute in the reduction of crime rate by 2017 and beyond

To strengthen community safety within our jurisdiction

To constantly engage SAPS and other role players in respect to matters of community safety

Number of crime awareness campaigns conducted

Number n/a 8 awareness campaigns conducted

Manager Community Services

COM 2

Traffic and Road safety

To continuously enhance road safety and ensure reduction of road

Engage relevant institutions to lobby for finances to improve facilities

Fencing of the Cala commonage Erection of shelters in both pounds

Number of Cala and Elliot commonages fenced

Number 10,000.00

1 Cala commonage fenced and 1 Elliot commonage fenced



IDP REVIEW 159/213

SDBIP

REF

Key Focus Area

Strategic Objective


IDP")

Key Performance

Indicators (KPI's)

Unit of Measure

Budget Location/War

d Annual Target

Project Owner

COM 3

accidents by 2017 and beyond

Improve education and awareness on Traffic Safety

Coordinate and participate in community safety education

Number of community safety educational awareness campaigns participated in.

Number Not applicable

Participated in 4 educational awareness campaigns


COM 4

Improve education and awareness on Traffic Safety

Organise and conduct traffic safety campaigns

Number of campaigns conducted on traffic safety


2 campaigns conducted on traffic safety


KPA 2: LAND USE MANAGEMENT [WEIGHT % = 20]


IDP REVIEW 160/213

SDBIP

REF

Key Focus Area

Strategic Objective


IDP")

Key Performance

Indicators (KPI's)

Unit of Measure

Budget Location/War

d Annual Target

Project Owner

COM 5

Health Facilitate provision of Primary Health Care services within a reasonable walking distance by at least 5km in line with National Targets by 2017 and beyond

To facilitate increase in the rate of implementation of awareness, prevention, treatment, care and support programmes

Facilitate provision of support programs and conduct educational programs to the community

Number of health awareness campaigns conducted


2 health awareness campaigns conducted


COM 6

HIV and AIDS

Ensure continuous reduction of HIV and AIDS by 2017 and beyond

Lobby relevant role players for a massive educational program on HIV and AIDS

Intensify educational awareness campaigns and enhance support NGO's

Number of HIV/AIDS educational awareness campaigns conducted

Number N/A 4 HIV/AIDS educational awareness campaigns conducted



IDP REVIEW 161/213

SDBIP

REF

Key Focus Area

Strategic Objective


IDP")

Key Performance

Indicators (KPI's)

Unit of Measure

Budget Location/War

d Annual Target

Project Owner

COM 7

Disaster Manageme

nt

To provide a proactive system to avoid and/or minimise the impact of disaster in our area by 2017

Conduct disaster awareness campaigns

Conduct disaster awareness campaigns

Number of disaster awareness campaigns conducted

Number R 50,000 2 disaster awareness campaigns conducted


COM 8

To continuously facilitate and co-ordinate effective management of disasters that occur within sakhisizwe by 2017 and beyond

To co-ordinate and facilitate identification of wards vulnerable to disasters and engage communities on awareness campaigns

Establish Disaster management structures per ward

Disaster management structures established per ward - Yes/No

Yes/No n/a Yes - Disaster management structures established per ward



IDP REVIEW 162/213

SDBIP

REF

Key Focus Area

Strategic Objective


IDP")

Key Performance

Indicators (KPI's)

Unit of Measure

Budget Location/War

d Annual Target

Project Owner

COM 9

Education To continuously facilitate the improvement of the quality of learning and teaching by 2017 and beyond

To lobby for the establishment operation of early childhood development centres and monitor their compliance to safety regulations

To lobby for the establishment operation of early childhood development centres and monitor their compliance to safety regulations

Number of quarterly reports on compliance/non-compliance by ECDs to safety regulations (if ECDs are established and functional)

Yes N/A 4 quarterly reports on compliance by ECDs to safety regulations (if ECDs are established and functional)


KPA 3: GOOD GOVERNANCE AND PUBLIC PARTICIPATION [WEIGHT % = 15]


IDP REVIEW 163/213

SDBIP

REF

Key Focus Area

Strategic Objective


IDP")

Key Performance

Indicators (KPI's)

Unit of Measure

Budget Location/War

d Annual Target

Project Owner

COM 10

Maintenance

To have an improved system of municipal governance in line with applicable legislation by 2017

Implementation of a localised Integrated Waste Management Plan

Implement a localised Integrated Waste Management Plan

% collection of waste in areas targeted for refuse collection per the Refuse collection register

Percentage

? 100% collection of waste in areas targeted for refuse collection per the Refuse collection register


COM 11

By-law enforcement Enforcement

of relevant by-laws.

Implementation of relevant by-laws.

Number of awareness campaigns on by-laws

Number n/a 1 awareness campaign conducted on by-laws



IDP REVIEW 164/213

SDBIP

REF

Key Focus Area

Strategic Objective


IDP")

Key Performance

Indicators (KPI's)

Unit of Measure

Budget Location/War

d Annual Target

Project Owner

COM 12

% implementation of the library business plan

% 369000 100% implementation of the library business plan


COM 13

Number of reports submitted to DISRAC on implementation of the business plan

Number N/a 4 reports submitted to DISRAC on implementation of the business plan


COM 14

Integrated Development Planning

Reviewal of the IDP in line with legislative requirements

Participate in the reviewal of the IDP and budget as per targets set in the process plan/s

Percentage participation in the reviewal of the IDP and budget per relevant targets/actions in the process plan/s (i.e. in terms of meetings or submission of information on

Percentage

Not applicable

100% participation in the reviewal of the IDP and budget per relevant targets/actions in the process plan/s (i.e. in terms of meetings or



IDP REVIEW 165/213

SDBIP

REF

Key Focus Area

Strategic Objective


IDP")

Key Performance

Indicators (KPI's)

Unit of Measure

Budget Location/War

d Annual Target

Project Owner

time) submission of information on time)


IDP REVIEW 166/213

Department: Integrated Planning and Economic Development

SDBIP

REF

Key Focus Area

Strategic Objectiv

e IDP Strategy

Project/Activity ("Linked

to IDP")

Key Performance

Indicators (KPI's)

Unit of Measur

e Budget

Location/Ward


Key Performance Area 1: Local Economic Development - WEIGHTING 60%

IPED 01

Planning & Economic Development Strategy

To develop the local economy through focused economic development initiatives by 2017 and beyond

Collaborate with strategic partners and develop BPs to potential funders for specific projects

Development and submission of business plans to potential funders

Number of business plans submitted to potential funders

Number All wards 1 business plan submitted to potential funders

IPED Manager

IPED 02

Employment Creation

To create sustainable employment by 2017 and beyond

Facilitation of job creation through municipal capital projects.

Facilitate creation of jobs through capital projects

Number of jobs created through capital projects

Number

All wards 70 jobs created through capital projects

IPED Manager


IDP REVIEW 167/213

SDBIP

REF

Key Focus Area

Strategic Objectiv

e IDP Strategy


to IDP")

Key Performance

Indicators (KPI's)

Unit of Measur

e Budget

Location/Ward


IPED 03

Employment Creation

To create sustainable employment for Sakhisizwe communities by 2017 and beyond

Facilitate job creation through the EPWP programme

Facilitate job creation through EPWP the Programme

Number of Full Time Equivalent Jobs Created and maintained throughout the year

Number All wards 70 full Time Equivalent Jobs Created and maintained throughout the year

IPED Manager

IPED 04

Employment Creation

Facilitate job creation through the CWP Programme

Facilitate job creation through the CWP Programme

Number of jobs created and maintained throughout the year through the CWP Programme

Number

All wards 1035 jobs created and maintained throughout the year through the CWP Programme

IPED Manager


IDP REVIEW 168/213

SDBIP

REF

Key Focus Area

Strategic Objectiv

e IDP Strategy


to IDP")

Key Performance

Indicators (KPI's)

Unit of Measur

e Budget

Location/Ward


IPED 05

Tourism Development, Manufacturing & SMME support

To continuously ensure promotion of Small, Medium and Micro Enterprises by 2017 and beyond


Provide support to meaningful local economic development (LED) initiatives

Number of SMMEs supported with structures

Number All wards Specify ward numbers

20 SMMEs supported with structures

IPED Manager

IPED 06

Agriculture, Farming & Poverty Alleviation

To continuously ensure promotion of SMMEs and cooperatives towards local economic


Provide support to meaningful local economic development (LED) initiatives

Number of cooperatives supported with training

Number All wards 16 cooperatives supported with training

IPED Manager


IDP REVIEW 169/213

SDBIP

REF

Key Focus Area

Strategic Objectiv

e IDP Strategy


to IDP")

Key Performance

Indicators (KPI's)

Unit of Measur

e Budget

Location/Ward


development by 2017 and beyond

IPED 07

SMME/Cooperatives Development

To continuously ensure promotion of SMMEs and cooperatives towards local economic development by 2017 and beyond

Support SMME’s and Cooperatives through the SCM process

Provide support to SMMEs and cooperatives through award of business

% of the budget spent on local service providers

Percentage

Opex Internal 15% of the budget spent on local service providers

IPED Manager


IDP REVIEW 170/213

SDBIP

REF

Key Focus Area

Strategic Objectiv

e IDP Strategy


to IDP")

Key Performance

Indicators (KPI's)

Unit of Measur

e Budget

Location/Ward


IPED 08

SMME Development

To continuously maintain an updated SMMEs database by 2017 and beyond

Update the database of SMMEs with new SMMEs

Update the database of SMMEs with new SMMEs

SMME database updated with SMMEs - Yes/No

Yes/No 20% N/A Yes - SMME database updated

IPED Manager

IPED 09

Local economic development

To ensure a functional local business forum by 2017 and beyond

Facilitate the functioning of a local business forum.

Coordinate local business forum meetings

Number of local business forum meetings coordinated

Number R -

All wards 3 local business forum meetings coordinated

IPED Manager

Key Performance Area 2: Basic Service Delivery - WEIGHTING 20%


IDP REVIEW 171/213

SDBIP

REF

Key Focus Area

Strategic Objectiv

e IDP Strategy


to IDP")

Key Performance

Indicators (KPI's)

Unit of Measur

e Budget

Location/Ward


IPED 10

Planning Development and Land use management

To ensure compliance with Town planning regulations by 2017 and beyond

Processing of land use applications

Processing of land use applications

% of land use applications submitted and been approved.

Percentage

All wards 100% of land use applications submitted and been approved.

IPED Manager

Key Performance Area 4: Financial Viability - WEIGHTING 20%

IPED 11

Financial Management

To continuously ensure effective budget control and expenditure monitoring by 2016 and



% of actual operational expenditure versus budgeted operational expenditure

Percentage

Internal 100% IPED Manager


IDP REVIEW 172/213

SDBIP

REF

Key Focus Area

Strategic Objectiv

e IDP Strategy


to IDP")

Key Performance

Indicators (KPI's)

Unit of Measur

e Budget

Location/Ward


beyond


IPED 12

Audit action plan

To ensure effective, efficient and economical governance processes for the municipality by 2016 and beyond

Implement AG and Internal Audit recommendations

Implement AG and Internal Audit recommendations

% of total action plans (internal and AG) implemented/resolved

Percentage

Internal 100% of total action plans (internal and AG) implemented/resolved

IPED Manager


IDP REVIEW 173/213

Department: Budget and Treasury Office

SDBIP REF

Key Focus Area

Strategic Objective

IDP Strategy Project/Activi

ty ("Linked to IDP")


(KPI's)

Unit of measure

Budget

Location/Ward

Annual Target

Project Owner

Key Performance Area 2: Basic Service Delivery - WEIGHTING 20%

CFO 01

SCM - Procurement of goods and services

To ensure effective

and efficient

compliance to the SCM Policy by 2016 and beyond.

Update details of suppliers on supplier database on a regular basis.

Invite suppliers to regularly update details on the supplier database

Number of reports prepared on supplier database updates

Number Internal 4 Reports prepared on supplier database updates

CFO

CFO 02

Efficient and effective SCM processes

Prompt processing of bids.

% of bids processed within 90 days after the closing date

Percentage

Internal 100% of bids processed within 90 days after the closing date

CFO


IDP REVIEW 174/213

SDBIP REF

Key Focus Area

Strategic Objective




(KPI's)

Unit of measure

Budget

Location/Ward

Annual Target

Project Owner

CFO 03

Timely processing of procurement plan requests.

Timeous processing of procurement requests.

% of procurement requests processed on time, i.e. within 14 days (quotations) within 90 days (tenders).

Percentage

Internal 100% of procurement requests processed on time, i.e. within 14 days (quotations)

CFO

CFO 04

Ensuring effective monitoring and investigation of SCM Policy contraventions.

Preparation of SCM reports and submission to Treasury and Council

Number of SCM reports prepared and submitted to Treasury and Council

Number Internal 4 SCM reports prepared and submitted to Treasury and Council by the 10th after the end of the quarter

CFO, MM & MAYOR

Key Performance Area 3: Municipal Transformation and Institutional Development -WEIGHTING 15%


IDP REVIEW 175/213

SDBIP REF

Key Focus Area

Strategic Objective




(KPI's)

Unit of measure

Budget

Location/Ward

Annual Target

Project Owner

CFO 05

Financial reporting

To promote accountability and sound financial management in the Municipality by 2016 and beyond.

Clean audit outcome in the 2015/16 FY.

Implementation of the Audit Action Plan

% implementation of the Audit Action Plan by June 2016.

Percentage

Internal 100% Implementation of the Audit Action Plan by June 2016

CFO

Key Performance Area 4: Municipal Financial Viability - WEIGHTING 50%

CFO 06

Asset Register management

To ensure proper management of the Municipal assets by 2016 and beyond.

Effective management and verification of municipal assets

Management and verification of municipal assets

% updating of the municipal asset register

Percentage

Internal 100% updating of the municipal asset register

CFO


IDP REVIEW 176/213

SDBIP REF

Key Focus Area

Strategic Objective




(KPI's)

Unit of measure

Budget

Location/Ward

Annual Target

Project Owner

CFO 07

Financial reporting

To promote accountability and sound financial management within the Municipality by 2016 and beyond.

Preparation of credible annual financial statements

Preparation of the annual financial statements

Date by which a consolidated set of financial statements is submitted for audit

Date Internal Consolidated set of annual financial statements submitted to the AG by 31 August 2015

CFO

CFO 08

Budgeting & financial control

To ensure a 90% collection of billed income by 2016 and beyond.

Improved revenue collection

Facilitate and improve revenue collection

% of billed revenue collected by June 2016

Percentage

Internal 90% of billed revenue collected by June 2016

CFO

CFO 09

To continuously ensure economical and prudent spending of

Monitoring of monthly payroll reconciliations

Perform monthly payroll reconciliations

Number of monthly payroll reconciliations prepared by the 10th day of each

Number Internal 12 reports monthly payroll reconciliation reports prepared by the 10th day

CFO


IDP REVIEW 177/213

SDBIP REF

Key Focus Area

Strategic Objective




(KPI's)

Unit of measure

Budget

Location/Ward

Annual Target

Project Owner

allocated financial resources by 2016 and beyond

consecutive month

of each consecutive month

CFO 10

To continuously ensure economical and prudent spending of allocated financial resources by 2016 and beyond

Monitoring of the budget spending/expenditure

Monitor departmental operational expenditure

% adherence to the operational budget in terms of operational expenditure

Percentage

Internal 100% adherence to the operational budget in terms of operational expenditure

CFO - MM - MAYOR


IDP REVIEW 178/213

SDBIP REF

Key Focus Area

Strategic Objective




(KPI's)

Unit of measure

Budget

Location/Ward

Annual Target

Project Owner

CFO 11

Revenue Management

To continuously manage and broaden the revenue base of the Municipality by 2016 and beyond.

Lobby council for a council resolution to allow the recovery of the old debt owed to the Municipality by the municipal customers

Reviewal of the Debt collection policy

Debt collection policy adopted by council - Yes/No

Yes/No Internal Yes - Debt collection policy adopted by council

PORTFOLIO HEAD FINANCE


CFO 12

Statutory reports

To continuousl

y ensure effective

compliance to the MFMA

reporting requiremen

ts in the Municipality

by 2016 and beyond

Ensure constant, compliant and

accurate financial reporting

Prepare Section 71 reports

Number of Section 71 reports prepared by month-end and submitted to Mayor, EXCO, Provincial & National Treasury by the 10th

Number Internal 12 Monthly Sec 71 Reports submitted to Mayor, Provincial & National Treasury by the 10th working day of the month

CFO


IDP REVIEW 179/213

SDBIP REF

Key Focus Area

Strategic Objective




(KPI's)

Unit of measure

Budget

Location/Ward

Annual Target

Project Owner

working day of the month

CFO 13

Prepare Section 52 (d) reports

Number of Section 52(d) reports submitted to Council within 30 days

Number Internal 4 Section 52(d) reports submitted to council within 30 days

CFO

CFO 14

To continuously ensure effective compliance to the MFMA reporting requirements in the Municipality by 2016 and beyond

Prepare Section 72 Mid-year reports

Date by which the Section 72 report is submitted to Council, Mayor, Provincial & National Treasury

Date Internal Section 72 report submitted to Council, Mayor, Provincial & National Treasury by 31 January 2016

CFO


IDP REVIEW 180/213

SDBIP REF

Key Focus Area

Strategic Objective




(KPI's)

Unit of measure

Budget

Location/Ward

Annual Target

Project Owner

CFO 15

Budgeting & financial control

To continuously ensure effective compliance to the MFMA and SARS reporting requirements in the Municipality by 2016 and beyond

Effectively and efficiently manage the expenditure of the municipality

Undertake bi- monthly VAT reconciliations

Dates on which VAT reconciliations are prepared

Number Internal 4 VAT reconciliations prepared by the 25th of each new quarter

CFO

CFO 16

To continuously ensure effective compliance to the MFMA and SARS reporting requirements in the Municipality

Submission of VAT Returns

Number of VAT Returns submitted by the 25th day of each second month

Number Internal 6 VAT Returns submitted by 25th day of each second month.

CFO


IDP REVIEW 181/213

SDBIP REF

Key Focus Area

Strategic Objective




(KPI's)

Unit of measure

Budget

Location/Ward

Annual Target

Project Owner

by 2016 and beyond

CFO 17

Indigent Management

To provide basic services to indigent communities within our jurisdiction by 2016 and beyond.

Effective and continuous monitoring of the indigent register

Monitor levels of household incomes and continuously review indigent register

% of indigent households (earning a gross less than R1500/pm) subsidized with basic services

Percentage

Internal 100% of indigent households (earning a gross less than R2860/pm) subsidized with basic services

CFO

CFO 18

Provision of ICT services & support

To promote good ICT governance within the Municipality in 2016 and beyond.

By maintaining the existing ICT licences

Maintain existing licenses for municipal information systems (Finance, PMS + Other)

Number of licences renewed and contracts fully functional (All licenses and contracts fully serviced by June 2016)

Number Internal 2 ICT Licences renewed and 1 SEBATA Contract signed

CFO


IDP REVIEW 182/213

Department: Office of the Municipal Manager

SDBIP

REF

Key Focus Area

Strategic Objective

IDP Strategy

Project/Activity ("Linked to IDP")

Key Performance

Indicators (KPI's)

Unit of Measure

Budget Location/W

ard Annual Target

Project Owner

KPA: GOOD GOVERNANCE AND PUBLIC PARTICIPATION [WEIGHT % = 20]

MM 01

Municipal Planning

To continuously ensure compliant and developmentally oriented planning by 2017 and beyond

Reviewal of the IDP in line with legislative requirements

Contribute towards the review of the IDP in line with the IDP Process Plan

Reviewed IDP adopted by council on 31 May 2016- Yes/No

Yes/No Not applicable

Yes - Reviewed IDP adopted by council by the 31 May 2016

Municipal Manager

MM 02

Reviewal/development of policies in preparation for the 2016/17 financial year

Reviewed/developed municipal policies adopted by council - Yes/No


Yes - Reviewed/developed municipal policies adopted by council

Municipal Manager


IDP REVIEW 183/213

SDBIP

REF

Key Focus Area

Strategic Objective

IDP Strategy


Key Performance

Indicators (KPI's)

Unit of Measure

Budget Location/W

ard Annual Target

Project Owner

MM 03

Legal Services

To ensure effective,

efficient and compliant

governance prcoesses by

2017 and beyond

Effective and efficient utilisation of legal services

Seek legal advice on legal matters on behalf of the municipality

Legal opinion sought by the MM from the municipality's legal advisor where necessary - Yes/No

Yes/No 100,000.00

Yes - Legal opinion sought by the MM from the municipality's legal advisor where necessary

Municipal Manager

MM 04

Effective and efficient value-for-money management

Facilitate the development of New contracts/SLAs/ for new service providers developed

New contracts/SLAs for new service providers signed - Yes/No


Yes -New contracts/SLAs for new service providers signed

Municipal Manager

MM 05

Monitor compliance

with legislation

and reporting within the

municipality

Monitor effective implementation of the PMS framework/policy

Quarterly performance reports with PoEs submitted to PMS section by the 10th working day after end of the quarter - Yes/No


4 quarterly performance reports with PoEs submitted to PMS section by the 10th working day after end of the quarter

Municipal Manager


IDP REVIEW 184/213

SDBIP

REF

Key Focus Area

Strategic Objective

IDP Strategy


Key Performance

Indicators (KPI's)

Unit of Measure

Budget Location/W

ard Annual Target

Project Owner

MM 06

Submission of audit action plan status reports to MPAC

Number audit action plan status reports submitted to MPAC


2 audit action plan status reports submitted to MPAC

Municipal Manager

MM 07

Compilation of the 2014/15 Annual Report.

Annual and MPAC reports submitted to Provincial Treasury and AG by the 7th day after adoption by council. - Yes/No

Yes Not applicable

Yes - Annual and MPAC reports submitted to Provincial Treasury and AG by the 7th day after adoption by council.

Municipal Manager

FINANCIAL VIABILITY [WEIGHT % = 30]

MM 08

Risk Management

To ensure effective, efficient and compliant governance prcoesses by 2017 and beyond

Effecttive, efficient and economical risk management processes

Development of a risk management plan

Reviewed Institutional Risk Register adopted by council by 30 June 2016 -Yes/No

Yes R 200,000

Yes - Reviewed Institutional Risk Register adopted by council by 30 June 2016

Municipal Manager


IDP REVIEW 185/213

SDBIP

REF

Key Focus Area

Strategic Objective

IDP Strategy


Key Performance

Indicators (KPI's)

Unit of Measure

Budget Location/W

ard Annual Target

Project Owner

MM 09

Revenue Enhancement

Ensure contribution to the municipality's own revenue by 20% by 2016 and beyond

Leverage of local, provincial, national and international resources

Lobby funding to assist with service delivery

Follow-up on submitted business plans towards securing funding for service delivery - Yes/No


Follow-up on submitted business plans towards securing funding for service delivery - Yes/No

Municipal Manager

MUNICIPAL TRANSFORMATION AND INSTITUTIONAL DEVELOPMENT [WEIGHT % = 25]

MM 10

Council Support

To ensure effective, efficient and compliant governance prcoesses by 2017 and beyond

Effective and efficient municipal oversight

Enhance adherence to the Standing Rules of Order and Institutional Calendar

Percentage adherence by all committees to the institutional calendar

Percentage

Not applicable

100% adherence by all committees to the institutional calendar

Municipal Manager


IDP REVIEW 186/213

SDBIP

REF

Key Focus Area

Strategic Objective

IDP Strategy


Key Performance

Indicators (KPI's)

Unit of Measure

Budget Location/W

ard Annual Target

Project Owner

MM 11

Special programmes and community development

To continuously promote public participation and social development by 2017 and beyond

Facilitate mainstreaming of special programmes in our society -

Preparation of reports on sittings of war rooms per ward

Number of quarterly reports prepared on sittings of war rooms per ward

Number All wards

4 quarterly reports prepared on sittings of war rooms per ward

Municipal Manager

MM 12

Special programmes and community development

Effective and efficient Youth programmes

Coordinate Youth programmes

Number of Youth programmes coordinated

Number

All wards

2 Youth programmes coordinated

Municipal Manager

MM 13 Special

programmes and community development

To facilitate Programs for the elderly

Coordinate 1 senior citizens project in partnership with Social Development

Number of senior citizens events coordinated in partnership with Social Development

Number All

wards

Any of the

wards

1 senior citizen's event coordinated in partnership with Social Development

Municipal Manager


IDP REVIEW 187/213

SECTION F – PROJECTS

DEVELOPMENT PROJECTS TO BE IMPLEMENTED

2015/2016 -2016/2017

14.1 Capital project list by Vote

Vote Description Medium Term Revenue & Expenditure

Framework

2014/15 2015/16 2016/17

Capital expenditure - Municipal Vote

EXUCUTIVE & COUNCIL R 600 000 R 632 400 R 666 550

Council R 500 000 R 527 000 R 555 458

Executive R 100 000 R 105 400 R 111 092

FINANCANCE & ADMIN R 100 000 R 105 400 R 111 092

Budget & Treasury R - R - R -

IT Services R 100 000 R 105 400 R 111 092

Corporate Services R - R - R -

Property Services R - R - R -

Property Services

PLANNING & DEVELOPMENT R - R - R -

IPED R - R - R -

PMU

Planning & Development - Projects

HOUSING R - R - R -

Housing R - R - R -

PUBLIC SAFTETY R - R - R -

Traffic R - R - R -

HEALTH R - R - R -

Health - Clinics R - R - R -

Health Clinics

COMMUNITY SERVICES R 6 300 000 R - R -

Libraries R - R - R -

Cemeteries R - R - R -

Community Halls R 6 300 000 R - R -

Pound R - R - R -

SPORT & RECREATION R - R - R -

General R - R - R -

Caravan Parks R - R - R -

WASTE MANAGEMENT R 1 906 697 R - R -

Refuse R 1 906 697 R - R -

ROAD TRANSPORT R 9 317 303 R 17 270 500 R 17 874 696


IDP REVIEW 188/213

Vote Description Medium Term Revenue & Expenditure

Framework

2014/15 2015/16 2016/17

Roads & Streets R 9 317 303 R 17 270 500 R 17 874 696

ELECTRICITY R 5 050 000 R 52 700 R 55 546

Electricity R 5 050 000 R 52 700 R 55 546

WATER R - R - R -

Water R - R - R -

WASTE WATER MANAGEMENT R - R - R -

Sewerage R - R - R -

Example 14 - Vote R - R - R -

Sub vote example 14

Example 15 - Vote R - R - R -

Sub vote example 15

Capital multi-year expenditure sub-

total

R 23 274 000 R 18 061 000 R 18 707 883


IDP REVIEW 189/213

14.2 The 3 Year Infrastructure Plan as per Technical services

Form ID

No

(if

availabl

e)

Project Number Project Name Approved MIG

Amounts

War

d

Comp

onent

Projects

Category

MTREF PERIOD

2

0

2014-

2015

2015-2016 2016-2017

181705 MIG/EC/2012/066 Provision of Hawker Stalls,

Upgrading of Bashee Street & Taxi

Rank

R 4 716 787 4 &

2

B & E LED R 4

000 000

R 716 787

212731 Awaiting

registration

Establishment of Cala Landfill Site

Phase 2

R 8 369 910 4 P Landfills R 1

906 697

R 1 000 000

219407 MIG/EC/1628/RST

/09/10

Cala Town to Qokolo and Kopitjie

Access Road Phase 2

R 8 600 000 4 B Roads

R

1

R 1

500 000

R 1 000 000

218822 Awaiting

registration

Provision of Hawker Stalls,

Upgrading of Bashee Street & Taxi

Rank Phase 2

R 17 350 000 4 &

2

B & E LED R 1

500 000

R 4 000 000

166746 MIG/R/EC/5093/0

8/09

Makhwetsubeni Access Road R 2 882 361 9 B Roads R

780 000

R 2 222 750

179395 MIG/R/EC/6603/0

9/10

Mthingwevu to Ndambane Access

Road

R 4 967 550 8 B Roads R

764 000

R 4 000 000


IDP REVIEW 190/213

Form ID

No

(if

availabl

e)

Project Number Project Name Approved MIG

Amounts

War

d

Comp

onent

Projects

Category

MTREF PERIOD

2

0

2014-

2015

2015-2016 2016-2017

165207 MIG/R/EC/5034/0

8/09

Xhonya to Macangceni Access

road

R 2 872 455 3 B Roads R

750 000

R 2 000 000

Planned funding allocations from DORA R 17

474 000

R 18 455 000


IDP REVIEW 191/213

14.2.1 Summary of capital projects to be implemented in 2015/2016

Description Amount

Office Furniture 350 000

Tools & Equipment - Roads 10 000 DME – Mthingwevu 333 connections 4 000 000

MIG – Xhonya to Macanceni access road 1 875 000

MIG – Makhwetshubeni access road 1 750 000 MIG - Ward 8 - Community Hall

MIG - Hawkers Stalls & Taxi Rank

MIG - Hawker Stalls, Bashee Street & Taxi Rank

TOTAL

COUNCIL EXPENDITURE

SPU R 800 000

ECDC R 10 000

ISDR R 10 000

TOTAL R 820 000

14.2.2 The 3-year capital projects to be funded by Chris Hani DM in Sakhisizwe LM (2014/15 up to 2016/17)

MIG PROJECTS

SAKHISIZWE MUNICIPALITY 2014/2015 2015/16 2016/17

Project No Project Name

Elliot Waste Water Treatment Works R 0.00

11/2008/MD(ND) Elliot Waste Water Treatment Works

R13 012 882.00 R 1 137 236.06 R 2 000 000.00

30/2010/MD(TS) Region 3 Sanitation Backlog R 0.00

Cluster 5 Sanitation (Wards 2,3,4,7 and Talent ) R 5 000 000.00 R 6 929 615.98

Cluster 4 water backlog(Wards 6,7,& 4) R 0.00 R 10 000 000.00 R 3 138 590.00

37/2011/MD(LM)

Cluster 4 Water Supply Scheme: Alpha Farm Rising & Gravity Bulk Pipeline

R 360 000.00

39/2011/MD(LM)

Cluster 4 Water Supply Scheme: Clunny Farm Rising & Gravity Bulk

R 270 000.00


IDP REVIEW 192/213

SAKHISIZWE MUNICIPALITY 2014/2015 2015/16 2016/17

Project No Project Name

Pipeline

12/2012/MD(MT)

Cluster 4 Water Supply Scheme: North Eastern Scheme Recticulation

R 700 000.00

12/2013/MD(BL)

Cluster 4 Water Supply Scheme: North Eastern Scheme Reservoirs

R 3 670 000.00

Cala Bulk Water and Sanitation Services R 0.00 R 5 000 000.00 R 10 000 000.00

upgrading of Cala Wastewater Treatment Works

R 1 000 000.00

TOTAL: SAKHISIZWE LM

R 19 012 882.00 R 21 137 236.06 R 22 068 205.98

MUNICIPAL WATER INFRASTRUCTURE GRANT

Project Number Project Name 2014/2015 2015/16 2016/17

SAKHISIZWE

Cluster 4 (Lower Langanci; Upper Indwana; Upper Mnxe)

R 7 000 000.00 R 15 000 000.00

Elliot: Polar Park Water Services

R 5 500 000.00 R 15 000 000.00

TOTAL SAKHISIZWE R12 500 000.00 R 30 000 000.00 R -

REFURBISHMENT OF WATER TREATMENT WORKS (WSOG)

Municipality Project Name 2014/15 2015/16 2016/17

Sakhisizwe Refurbishment of WTW in Elliot

R4 000 000.00 1 000 000.00 R2 000 000.00

Grand Total R12 000 000.00 R5 000 000.00 R5 000 000.00

UNBLOCKING OF BULK INFRASTRUCTURE SERVICES (DEPT OF HOUSING)

Project Name 2014/15

Cala Ext 13, 14, 15 and 420 Houses R29 774 610.00

R104 527 670.00


IDP REVIEW 193/213

14.2.3 Roads & Stormwater projects planned by the Department of Roads & Public Works in Sakhisizwe LM (2014/15 up to 2016/17)

VILLAGE NAMES ROAD NO

ROAD LENGTH

BLADING (G01 to G05)

FLOOD DAMAGE

km Rands Rands

MN 216,7 R 300 000

Cala road MR00714 7,9 R 53 002 R 0

Rhodes MR00719 27,0 R 182 029 R 0

To Cengcu DR02824 19,8 R 133 753 R 0

To Mhlwazi DR02825 11,9 R 80 347 R 0

To Farm (Titus) DR02826 3,9 R 26 602 R 0

Qebe DR02831 30,2 R 204 175 R 0

To Cengcu DR02832 10,1 R 67 856 R 50 000

To Farm (Gunuza) DR02836 9,4 R 63 670 R 0

To Farm (Mantashe) DR02837 13,7 R 92 567 R 0

DR02839 0,4 R 2 431 R 0

Tsomo Valley DR02841 25,5 R 171 969 R 0

DR02842 14,8 R 99 724 R 0

Old Xalanga Police st. DR02844 4,0 R 26 805 R 0

Manzimadaka DR02845 29,6 R 199 719 R 0

Upper Lufuta DR02846 2,6 R 17 217 R 0

DR02847 2,6 R 17 757 R 0

DR02848 7,2 R 48 275 R 0

Erve DR02850 6,3 R 42 469 R 0

Erve - Rhino DR02851 2,3 R 15 394 R 0

Gubenxa DR02852 28,0 R 188 848 R 0

Creamorer - Tsomo valley DR02856 11,2 R 75 418 R 0

DR02857 3,8 R 25 454 R 0

Maxongo DR02859 9,6 R 64 547 R 0

Dr Christian DR02860 4,0 R 27 007 R 0

Garry Farm DR02863 7,8 R 52 664 R 0

Farm (Mdaka) DR02865 1,0 R 6 954 R 0

Farm (Cicira) DR02866 5,1 R 34 569 R 0

Garry Farm DR02868 3,4 R 23 226 R 0

Farm (Tsomo) DR02869 6,3 R 42 469 R 0

DR02876 4,9 R 33 151 R 0

DR02884 10,3 R 69 206 R 0

DR02895 0,6 R 4 321 R 0

DR08002 29,4 R 0

Cala - Towards Ncora DR08038 21,7 R 439 138 R 700 000

Cala road DR08039 13,3 R 179 598 R 0

Mceula DR08040 12,8 R 258 662 R 0

DR08229 0,0 R 0


IDP REVIEW 194/213

VILLAGE NAMES ROAD NO

ROAD LENGTH

BLADING (G01 to G05)

FLOOD DAMAGE

km Rands Rands

Nomadambe DR08238 5,6 R 37 473 R 0

Sifonondile DR08240 20,9 R 281 551 R 0

Lahlangubo DR08241 1,2 R 7 967 R 0

Upper Lufuta DR08246 14,3 R 96 551 R 0

Mtingwevu DR08248 0,6 R 3 713 R 0

Tsengiwe DR08449 18,0 R 121 195 R 0

Qiba DR08464 9,5 R 64 142 R 0

688,7 R 3 683 587 R 1 050 000

Tarred surface roads

TARRED ROAD NAME

ROAD NO LENGTH

(km)

POTHOLE REPAIRS / SURFACE

PATCHING/BASE REPAIRS (P01,P02

& P03)

ROAD MARKING

(F02)

TR07401 1,23 R 158 524 R 14 174

TR07401 4,87 R 237 786 R 56 119

Ngcobo - Gushingalo MR00710 15,42 R 554 833 R 177 691

Cala - Lady Frere DR08012 8,00 R 396 309 R 96 453

Slag Pan DR02837 1,50 R 15 852

31,02 R 1 363 304 R 344 437

14.2.4 Housing projects planned by the Department of Human Settlements in Sakhisizwe LM (2014/15 – 2016/2017)

PROJECTS TOTAL NUMBER OF UNITS

BUDGET ALLOCATION 2014 - 15

BUDGET ALLOCATION 2015- 16


Cala 420 420 R 7,123,543 R 11,250,000 R 16,177,000

Cala 301 301 R 0 R 294,00 R 285,18

Elliot 302 302 R 100,00 R 98,00 R 95,06

Elliot Old Location 1000

1 R 80,00 R 1,200,000 R 5,500,000

Cala Ward 2-2 693

2,693 R 8,440,000 R 11,667,001 R 2,750,000

Cala Ward 4- 2662

2,662 R 370,01 R 2,750,000 R 2,750,000

Cala Elliot 514 - Ext 13&14

1 R 3,118,332 R 1,500,000 R 0


IDP REVIEW 195/213

PROJECTS TOTAL NUMBER OF UNITS


BUDGET ALLOCATION 2015- 16


Cala Elliot 514 - Ext 15

706 R 3,429,247 R 2,000,000 R 0

Cala Elliot 514 - Elliot 800

263 R 1,136,959 R 0 R 0

Cala Ext 13 & 14 1545

1,545 R 815,00 R 0 R 0

Cala Ext 15 1070

1,07 R 760,00 R 0 R 0

Elliot 800 800 R 2,351,094 R 0 R 0

Sakhisizwe Destitute

120 R 4,740,000 R 4,740,000 R 0

Cala Infrastructure services -

3,035 R 29,000,000 R 14,500,000 R 14,500,000

R 61,464,185 R 49,999,001 R 42,057,240

14.2.5 Agricultural projects planned by the Department of Agriculture and Agrarian Transformation for Sakhisizwe LM (2015/16)

District Local Municipality

Ward Project Name

Chief Directorate

Infrastructure needs

Required Budget

Sakhisizwe 9 Sakhisizwe Ward 9 Integrated Food and Nutrition Programme: Sowunale Primary Agricultural Cooperative

Rural Poverty reduction

Fencing of arable land, shearing shed

R2 000 000

6 Mkhululeni Co-operative

Primary Co-operatives

Fencing of 40 morgans and borehole fixing

R150 000


IDP REVIEW 196/213

INTEGRATION & ALIGNMENT This section outlines how the municipality will ensure alignment and integration of sector plans, PMS, SDBIP, BUDGET and IDP implementation plan. It highlights existing plans and gaps for attention by relevant line functions.

14.3 Sector Plans

This IDP recognizes all existing sector plans and ensures that their implementation budgets, timelines and projects are in support of the reviewed development objectives.

14.3.1 Integration and alignment with other spheres of government

SPHERE PROGRAMMES &

GUIDELINES SAKHISIZWE RESPONSES

National

Legislation & Policies Process Plan recognizes the list that informs our IDP approach

National Spatial Development Perspective

Resolved to revise its SDF to incorporate objectives of NSDP

Millennium Development Goals

Have set target for water & sanitation backlogs - which must be facilitated with Chris Hani DM

National Development Plan 2030

To integrate the priorities identified for our areas within the plan

National LED Framework Will utilize the framework as guide in its current process of formulating LED Strategy

National framework for municipal turn around strategies 2009

Our approach in this IDP is informed by the suggested key points in the National Municipal Turn-around strategy. We shall develop our own in Sakhisizwe

National KPAs Incorporated and mainstreamed into adopted KPAs + form part of PMS

Province

Provincial Growth & Development Strategy

Have identified key strategic localized projects in response to the EC Provincial 24 PRIORITIES

Have also taken into account the new priorities like Rural development which came after the April 2009 elections

Provincial Spatial Development Framework

Have adopted the hierarchy principle in determination of nodal areas

Sector Departments

5 Year plans

Have acknowledged all key projects that are budgeted and confirmed for implementation in 2014/15 within Sakhisizwe areas.

Formal letters of confirmation of commitments to be issued by Mayor as part of lobbying departments to act on their commitments – 2014/15 onwards

District

IDP Framework Informs our Process Plan activity schedule

CHDM plans Integrate our priorities within the designed strategies for the district in its strategic plans (IDP, WSDP, LED, SDF etc)

Water services Development Plan

Informed by our target priorities for meeting millennium goals - lobby DM to implement

Disaster Management Plan

Informs our localized firefighting responses - work closely at operational level

Occupational Health and Safety plan

Decided to use the DM plan to modify and customize for our application


IDP REVIEW 197/213

SPHERE PROGRAMMES &

GUIDELINES SAKHISIZWE RESPONSES

Waste Management Plan Informs our localized refuse collection strategies - work closely at operational level

LED Strategy Key district commitments relating to the DM Economic summit to be reinforced by our revised LED strategy

14.3.2 Alignment of Sakhisizwe IDP with EC PDGS development targets

EC Provincial Growth and Development Strategy 2009 - 2014

Alignment of Sakhisizwe IDP with EC PDGS

To maintain an economic growth rate of between 5% and 8% per annum

Increase GDP by 10% by 2017

- To halve the unemployment rate by 2014 Reduce unemployment by 20% by 2017

- To reduce, by 60% and 80%, the number of households living below poverty line by 2014

Create at least 250 additional jobs by 2017

- To reduce, by between 60% and 80%, the proportion of people from hunger by 2014

Support at least 2 cooperatives to support 20 beneficiaries by 2017

- To establish food self-sufficiency in the province by 2014

Support at least 5 families per annum with ploughing support (tractor time)

- To ensure universal primary education by 2014, with all children proceeding to the first exit point in a secondary school

Promote and support early childhood development

- To improve the literacy rate in the province by 50% by 2014

Promote improvements in school enrolments

- To provide clean water to all in the province by 2014

To reduce the percentage of households without access to basic levels of water supply to within 10% by June 2015

- To eliminate sanitation problems by 2014

To reduce the percentage of households without access to basic levels of sanitation service to within 5% by June 2015

14.3.3 Integration & Alignment of internal sector plans / policies

Department Sector Plan / Policy

Finance

Credit control & revenue collection strategy not in place.

Investment Plan

Revenue collection and enhancement strategy to be revised and implemented in 2013/14

SCM policy to be updated annually


IDP REVIEW 198/213

Department Sector Plan / Policy

Indigent policy needs to be updated and implemented

Service Delivery Budget Implementation Plans in place

Budget 2013/14 – 2015/16 adopted with this IDP

Risk& Asset Management plan

Corporate services

HR Manual & Policies in place

Organogram to be implemented as planned and budgeted by June 2015

Employment equity plan not in place.

Workplace skills plan to be amended with new inputs and implemented

Office of Municipal Manager

Performance Management Policy to be reviewed together with signed PM contracts for s56& 57 managers

SPU strategy and programme to be implemented and monitored as adopted

IDP to be revised and implemented

Integrated Planning & Economic Development

Integrated development plan review 2015/16

Spatial Dev Framework as adopted in March 2011

LED Strategy as adopted in 2011

Environmental sector plan not in place, funding sorted from DEA

Tourism sector plan once finalized in 2012

Housing sector plan as developed in 2012

Community services

HIV/ Aids workplace strategy not in place. Need help with this document

Waste management sector plan (adapt DMs plan)

Disaster management plan (adapt DMs plan)

Technical services Capital Infrastructure Investment plan to be developed with participation of wards and then adopted by council

14.3.4 Cala town bulk water and sewer master plan

Master Plan ( as adopted by the Council in March 2012) for the upgrading of the water and sewer infrastructure in Cala Town has been commissioned by Sakhisizwe Municipality, Water Services Provider for the town.

The Water and Sewer Master plan for Cala was last updated in 2005. Since the 2005 update there have been a number of water and sewer infrastructure develops in town and in addition, Sakhisizwe has now formally taken over the water services provision function from Chris Hani DM, the Water Services Authority.

14.3.5 Maintenance plan

Sakhisizwe Local Municipality has implemented numerous projects in recent years to improve the local electricity supply to its municipal area and the users within the area. The municipality wishes not to have the newly built infrastructure go to waste and be left unmaintained (Master Plan as adopted by the Council March 2012).

The electrical department needs to be well equipped to perform the maintenance and hence needs the proper equipped staff to implement the plan.


IDP REVIEW 199/213

Outlay of infrastructure:

MV Overhead/Underground Network

LV Overhead/Underground Network

LV Street Lighting

LV High Mast Lighting

Service Connections/ Meters

The document is attached as an annexure

14.3.6 Special Programmes

The municipality has adopted a comprehensive special programme action plan which will be largely comprised of the following programmes.

ITEM

AMOUNT

a) Capacity Building SPU Co-ordinator R 30’000.00

b) Stationery and running Costs R 25’000.00

c) Women’s Forum R 85’850.00

d) Elderly Forum R 116’500.00

e) Disability Forum R 70’750.00

f) Youth Council R 330’250.00

g) Mayor’s Cup R 250’000.00

h) Special Programmes Strategy R200 000,00

i) Children Advisory Forum R 30’000.00

j) Sport Council R

TOTAL R1,038’100.00


IDP REVIEW 200/213

14.3.7 Community based Plans

In 2012/13 the municipality developed detailed ward based plans with assistance from the Provincial Department of local government. The outcome of these plans informed the situation analysis of this document and they will be implemented in 2013/2014.

14.3.8 MPAC and Leadership Development

APC MPAC membership training was done 24-26 April 2012; Induction workshop for traditional leaders participating in municipal council was done by SALGA on the 17-20 April 2012. A follow up session is necessary to revive skills and competencies of our members in 2015/2016.

14.3.9 Audit Action Plan

Based on the recommendations of Auditor General the municipality developed and adopted its Audit action plan and is currently implementing and reporting on it regularly in its management meetings.

14.4 Housing sector plan

Human Settlement Sector Plan funded by the Department of Human Settlement. The Sector Plan was developed and adopted by council in 2012. It will be used to guide our housing interventions in 2014/15.

A detailed list of planned housing programmes is captured in the situation analysis section and further planned housing projects are listed in the projects section.

15 PERFORMANCE MANAGEMENT

In line with the requirements of the Local Government Municipal Systems Act – 2000 (hereinafter referred to as the Systems Act) read in conjunction with its Local Government Municipal Planning and Performance Management Regulations passed in August 2001 (hereinafter referred to as the Regulations), Sakhisizwe Local Municipality embarked on a process of establishing its comprehensive PMS.

In order to ensure smooth implementation of a municipal PMS, it is necessary to first develop and agree on a policy (framework).

The main goal of this document is to provide the Sakhisizwe Local Municipality with a written policy that will serve as a guide in terms of the key processes, procedures and mechanisms to be followed when implementing performance planning, measurement, review, reporting and auditing. This framework document will also outline timeframes as to when (in the cycle of municipal planning) should the processes of performance planning, measurement, monitoring, review, reporting and auditing as well as review of the PMS itself unfold. Further, the framework outlines the PMS model t be followed in implementing performance management at Sakhisizwe LM.

15.1 Status of the framework document

This document represents a policy which was commented upon and finalised. It was submitted to Exco and council for adoption in 2013/2014. After it was adopted by council it served as a binding policy that guides how performance management should be implemented at Sakhisizwe. It also serves as a document reference that is aimed at enhancing the awareness and understanding (among all role players) of how the performance management system should operate.

15.2 Working definition

Performance management is viewed as a continuous and cyclic process of evaluating our actions and operations to determine whether we are delivering the desired level of development


IDP REVIEW 201/213

committed in our IDP. It is envisaged as a process that will roll-out incrementally following the steps illustrated in the figure below:

PMS cyclic process

Sakhisizwe municipality subscribes to the view that PMS is a strategic management tool which equips (with a set of tools and techniques) leaders, managers, workers and stakeholders at different levels of an organization to regularly plan, continuously monitor, periodically measure, review and report performance of the organization in terms of a set of chosen indicators and targets for achieving development efficiency, effectiveness and impact.

In practical terms, performance management refers to the use of indicators to show how the organisation is performing on its development objectives as set out in the ruling integrated development plan. In Sakhisizwe, this will involve among other things:

developing performance scorecards (two levels - Strategic and Departmental)

setting of clear objectives, indicators and targets for performance (Based on IDP)

determining baseline levels for indicators before finalizing targets

gathering of measurement information to determine progress against set indicators and targets

regular reviewing of performance (monthly, quarterly & annually)

periodic reporting on performance (monthly, quarterly & annually)

regular auditing of performance reports

periodic assessing, evaluating and reviewing of the effectiveness of PMS itself

15.3 Policy context for municipal PMS

In 1997 the white paper on local government introduced the concept of performance management systems as a mechanism to improve accountability and enhance public trust on local government. The white paper further suggests that by involving communities in setting key performance indicators and reporting back to communities on performance, accountability is increased, and public trust in the local government system is also enhanced.

KPAs, Objectives, KPIs

and Targets to be set as

part of IDP

Planning &

Budgeting

Reviewing

Monitoring

Auditing

Evaluation

Reporting

KPAs, Objectives, KPIs

and Targets to be set as

part of IDP

Planning &

Budgeting

Reviewing

Monitoring

Auditing

Evaluation

Reporting


IDP REVIEW 202/213

In 1998, the White Paper on Transforming Public Service Delivery (Batho Pele) was adopted as a policy to enhance and enforce quality service among civil servants. All employees of public entities (government institutions including local government municipalities) are obliged to adhere to the provisions of the Batho Pele policy. These provisions are captured in the form of the following eight key principles:

a) Consultation: - Citizens should be consulted about the level and quality of public service they receive, and, where possible, should be given a choice about the services which are provided.

b) Service standards: - Citizens should know what standard of service to expect and should be consulted if promised service standards are to change including development targets set in terms of the IDP.

c) Access: - All citizens should have equal access to the services to which they are entitled. State of exposure to income or poverty should not be reason enough to lack access to a basic level of service.

d) Courtesy: - Citizens should be treated with courtesy and consideration. e) Information: - Citizens should be given full and accurate information regarding public

services they are entitled to receive. f) Openness and transparency: - Citizens should know how departments are run, how

resources are spent, and who is in charge of particular services. g) Redress: - If the promised standard of service is not delivered, citizens should be

offered an apology, a full explanation and a speedy and effective remedy; and when complaints are made citizens should receive a sympathetic, positive response.

h) Value-for-money: - Public services should be provided economically and efficiently in order to give citizens the best possible value-for-money.

The two policies mentioned above provide the framework for implementing performance management system in a municipality.

In order to ensure compliance with the objects of the constitution and national policy, Sakhisizwe municipality accepted the local government and Batho Pele white papers as its policy framework for performance management system and for advancing the cause of local government transformation

15.4 Legal context for municipal PMS

The municipal systems act 32 of 2000 calls for all municipalities to establish and implement performance management systems. In its chapter six, the act prescribes for all municipalities to:

develop a performance management system

set targets, monitor and review performance based on indicators linked to their integrated development plan (IDP)

publish an annual report on performance for the 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 the report.

have their annual performance report audited by the Auditor-General

involve the community in setting indicators and targets and reviewing municipal performance

In August 2001 regulations on municipal planning and performance management were published by Department of Provincial and Local Government (DPLG) to further explain the requirements of the act.

The regulations provide minimum requirements for a municipal performance management system and prescribe a set of seven national key performance indicators that must be


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measured and reported to national government by all municipalities annually. According to the regulations a municipal PMS must ensure that it:

complies with all the requirements set out in the Municipal Systems Act; demonstrates how it is to operate and be managed from the planning stage up to the

stages of performance and reporting; clarifies the roles and responsibilities of each role-player, including the local community,

in the functioning of the system; clarifies the processes of implementing the system within the framework of the

integrated development planning process; determines the frequency of reporting and the lines of accountability for performance; relates to the municipality's employee performance management processes; provides for the procedure by which the system is linked to the municipality's integrated

development planning processes; The regulations also prescribe that municipalities must monitor their performance and report on these national indicators (in addition to their local level indicators):

a) the percentage of households with access to basic level of water, sanitation, electricity and solid waste removal;

b) the percentage of households earning less than R1100 per month with access to free basic services;

c) 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;

d) the number of jobs created through municipality's local economic development initiatives including capital projects

e) the number of people from employment equity target groups employed in the three highest levels of management in compliance with a municipality's approved employment equity plan;

f) the percentage of a municipality's budget actually spent on implementing its workplace skills plan; and

g) financial viability as expressed by the following ratios:

(i) D

CBA

Where - "A" represents debt coverage "B" represents total operating revenue received "C" represents operating grants

"D" represents debt service payments (i.e. interest plus redemption) due within the financial year;

(ii) C

BA

Where - "A" represents outstanding service debtors to revenue

"B" represents total outstanding service debtors "C" represents annual revenue actually received for services;

(iii) D

CBA

Where - "A" represents cost coverage "B" represents all available cash at a particular time

"C" represents investments "D" represents monthly fixed operating expenditure.

In terms of section 53 of the Municipal Finance Management Act (MFMA) 2003, the mayor of a municipality must take reasonable steps to ensure that the annual performance agreements of the municipal manager and all senior managers are linked to the measurable performance


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objectives approved with the budget and to the service delivery and budget implementation plan; and are concluded in accordance with section 57(2j of the Municipal Systems Act.

Coupled with the MSA: 2000, the MFMA: 2003 provide for the development of a mid-term budget and performance assessment of the municipality. The development of the mid-year budget and performance assessment report should give an indication on the progress made by the municipality for the past six months. The MFMA requires that the accounting officer of the municipality take into account the performance of the municipality against the performance expectations set by senior managers and their departments.

The legislative framework referred to above provides a solid case for the implementation of Sakhisizwe performance management systems in local municipalities.

15.5 Other benefits for establishing PMS

For Sakhisizwe LM, the rationale for establishing PMS goes much deeper than the mere partial fulfilment of the legislative requirements. The following are other benefits for implementing a PMS.

15.5.1 Increased accountability

The performance management system should aim to provide a mechanism for ensuring increased accountability between:

The residents of the Sakhisizwe Local and the municipal council,

The political and administrative components of the municipality,

Each department and the executive office.

15.5.2 Learning and improvement

While ensuring that accountability is maximised, the performance management system must also provide a mechanism for learning and improvement. It should allow for the municipality to know which approaches are having the desired impact, and enable the municipality to improve delivery. It should form the basis for monitoring, evaluating and improving the Integrated Development Plan.

15.5.3 Early warning signals

The performance management system should provide Managers, the Municipal Manager, Standing Committees and the Executive Committee with early warning of non-performance of the full implementation of the Integrated Development Plan. It is important that the system ensures decision-makers are timeously informed of possible non-performance, so that they can facilitate pro-active intervention, if necessary.

15.5.4 Effective decision-making

The performance management system should provide appropriate management information that will allow efficient, effective and informed decision-making, particularly on the allocation of resources.

The functions listed above are not exhaustive, but summarise the intended benefits of the performance management system to be developed and implemented. These intended functions should be used to evaluate the performance management system periodically.

15.6 Principles guiding PMS implementation

This policy provides for implementation of a comprehensive Sakhisizwe PMS based on the following set of guiding principles:

UNIFORMITY - System must apply uniformly to all affected

DEVELOPMENTAL - Must be developmental in nature, not punitive. Therefore, must focus on outcomes or development impact achievements rather than short term individual benefits like earning bonuses


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EQUITY OF RIGHT -Must balance organisational needs and employee rights

PERFORMANCE CONTRACTS -Must provide for signing of performance contracts by section 57 managers

PMS MODEL -Must identify suitable model commensurate with existing organisational capacity, constraints & LG legal context.

EARLY WARNING -Must promote use as an early warning system

TRANSPARENCY – Must provide for effective participation of affected parties in arriving at final targeted performance commitments (setting of targets to be discussed and agreed with those the people / units whose performance will be managed)

DEMOCRATIC - Must provide for involvement of key stakeholders in the processes of PM planning, monitoring, review, reporting and auditing

15.7 Institutional arrangements

15.7.1 PMS Co-ordination

For purposes of coordinating PMS activities inside the municipality the policy provides for the delegation of authority to the corporate services manager to be the PMS coordinator. In terms of the envisaged role the PMS coordinator shall:

Facilitate PMS communication

Coordinate daily liaison

Issue memos inviting inputs and reports from managers

Facilitate implementation (monitoring & measurements of KPIs, reviews, report consolidation & submission, liaison with PMS audit committee etc)

15.7.2 PMS Audit function

For purposes of meeting legal requirements for the appointment of an independent audit committee to audit PM reports, the policy provides for:

Maintaining current status quo whereby the district PM Audit committee also audits reports of the local municipality via an agreement with the district

Creation of internal audit function to look at municipal PM reports prior to them being forwarded to the audit committee

The extension of the terms of reference of the current audit structure which currently audits financial statements only to also incorporate the task of auditing performance reports of the municipality

Preparation and submission of PM reports to be audited at least twice a year. This will happen during the months of January and June of each year. In this instance the policy

suggests that the second report be an annual report to prevent duplication.

15.7.3 Public participation

For purposes of ensuring effective participation by all relevant stakeholders in the PM processes, the policy provides for the recognition and use of the same structures set for the IDP. In terms of this policy, public participation for the planning of PMS takes place during IDP formulation which must cater for the formulation of:

Key development priorities agreed for each year

Development objectives

Key development targets agreed


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Therefore, IDP steering committee and Representative forums will serve as main key platforms for public and broader stakeholder participation.

15.7.4 Stakeholder Roles and Responsibilities

The following figure outlines the key roles and responsibilities to be discharged by the various role players in the process.

Stakeholder Roles and Responsibilities

Council / Exco

Management Team

Participate in performance

Management planning, monitoring

and review

Adopt the framework & PMS

Adopt Strategic Scorecard

Conduct Annual Review

Commission performance audits

Report to Public & Province

IDP Rep Forum

Audit Committee

Plan for PM

Adopt the framework

Draft scorecards

Approve Department Scorecards

Conduct Performance Measurements

Commission performance reviews

Produce PM reports

Commission performance audits

IDP Steering Comm.

Ward Committees

Audit PM reports

15.8 PMS model for Sakhisizwe LM

15.8.1 What is a model?

A model for performance management provides simplified mechanisms for understanding how better to organise and roll-out the various aspects of performance that should be measured, reported on and managed. It also provides a useful tool to predict and project future scenarios so that current decision-making could influence the desired future.

15.8.2 Why is a model important for PM?

Models have proved useful in performance management for the following reasons. They provide:

Balance: A good model will ensure balance in how the organisation measures and manages its performance. It should not bias performance measurement by relying on one facet of performance, but represent a multi-perspective holistic assessment of municipal performance. Simplicity: A good model should organise simply, what would otherwise be a long list of indicators attempting to comprehensively cover performance, into a set of categories sufficiently covering all key areas of performance. Models differ most significantly in what they assert are the key aspects of performance. Mapping of Inter-relationships: A good model will map out the inter-relationships between different areas of performance. These inter-relationships relate to the extent to which poor performance in one category would lead to poor performance in other related areas and the


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converse. These inter-relationships help in both the planning stage and the review stage, particularly in the diagnosis of causes of poor performance. Alignment of resources to strategy: A good model will align the processes of performance management to the Integrated Development Plan & budgeting processes of the organisation. It will ensure that the Integrated Development Plan is translated into performance plans that will be monitored and reviewed. The categories of key performance areas provided by a model should relate directly to the identified priority areas of the Integrated Development Plan. International experience in both the private and public sectors has shown that traditional approaches to measuring performance that tends to be heavily reliant on financial measures are severely lacking. These approaches tended to over-emphasise financial efficiency over other equally important variables of performance measurement and thereby providing a skewed perspective of the organisation’s performance, particularly for a municipal organisation.

However, with recent developments in performance measurement literature in both the public and private sector, it has become well accepted that in order to assess an organisation’s performance, a balanced view is required, incorporating a multi-perspective assessment of how the organisation is performing as seen by differing categories of stakeholders.

15.8.3 The Municipal Scorecard model

In terms of this policy the municipal scorecard model is to be used as a preferred model for the municipality. This model provides a modified version of the balanced scorecard model which has been adapted to SA local government legislation environment. It is also based on four key perspectives outlined later in this section.

The choice of this model is based on the strengths that it is:

Tightly aligned to the strategic planning (IDP) and Budget processes Directly relevant to the notions of developmental local government and co-operative

governance Fits neatly with the envisaged legal process of managing performance in a municipal

organisation in SA A balanced view of performance based on inputs, outputs, outcomes and processes A simple portrayal of municipal performance, where inter-relationships can be mapped Has been adopted as the recommended model for municipalities by the South African Local

Government Association (SALGA) because of its simplicity and relevance to local government environment.

The Municipal Scorecard is based on four key perspectives, outlined in the figure below.

Municipal Scorecard Model

Resource Management Perspective

Service Delivery

Perspective

Development Impact Perspective

Governance Process Perspective

The Municipal Organization

The Municipal Area

Inputs

Process

Outcomes Outputs


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The Development Impact Perspective: In this perspective the municipality will need to assess whether the desired development impact in the municipal area is being achieved. This perspective will constitute the development priorities for the municipal area and indicators that tell us whether the desired development outcomes are being achieved. It will be difficult to isolate development outcomes for which the municipality is solely accountable. It is expected that the development priorities and indicators, will often lie within the shared accountability of the municipality, other spheres of government and civil society. The measurement of developmental outcomes in the municipal area will be useful in telling us whether our policies and strategies are having the desired development impact. The Service Delivery Perspective: This perspective should tell us how a municipality is performing with respect to the delivery of services and products. This relates to the output of the municipality as a whole. The Resource Management Perspective: This perspective should tell us how a municipality is performing with respect to the management of its resources:

Budget & other financial Resources Human Resources Systems & Information Organisational Infrastructure (enabling equipment)

This relates to the inputs of the municipality as a whole. Governance Process Perspective: This perspective should tell us how a municipality is performing with respect to its engagement and relationship with its stakeholders in the process of governance. This perspective should include, amongst others:

Public participation Intergovernmental relations Customer care relations Citizen satisfaction Access to Information Communication strategies

This relates to the governance processes of the municipality as a whole.

DEFINITION OF CONCEPTS USED IN THE SCORECARDS

Objectives: are statements about what a service wants to achieve. Indicators: are measures that tell us whether we are making progress towards achieving our

objectives. A baseline measure: is the value of the indicator before the start of the programme or prior to

the period over which performance is to be reviewed. A target: is the value of the indicator that we want to achieve by a specified time. The measurement source and frequency: should indicate where the data emanates from,

and how frequently it can be measured and reported. This information will assist the auditing process.

These have been used as the basis of the plans for the strategic and service scorecards.

CRITERIA ADOPTED TO GUIDE SELECTION OF SUITABLE INDICATORS

Focused and Specific: Is the indicator selected clear, focused and not stated in an ambiguous way?

Measurable: Does the indicator have defined unit of measurement? Note that this unit must

also be used in determining the target.


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Valid and Relevant: Validity is the degree to which an indicator measures what it is intended to be measured. Is the indicator relevant to the objective of the performance being measured?

Reliable: Reliability is the degree to which repeated measures, under exactly the same conditions will produce the same result. How reliable is your indicator?

Simple: Good indicators will be simple, easy to communicate. A composite indicator would try to measure a series of performance dimensions at the same time, this may confuse. Where possible avoid using complex or composite indicators.

Minimize perverse consequences: Poorly chosen indicators, while they may have noble intentions, can have perverse consequences in the behaviours it incentives. Choose indicators that will incentives behaviour that is desired and not unintended results.

Data Availability: Good indicators will also rely on data that is, or intended to be, available on a regular basis. Be careful of choosing indicators that will not have data to be measured against.

15.8.4 Levels of scorecards in a municipal scorecard model

There are two levels of scorecards recommended in the municipal scorecard model. These include the strategic and the services outcome scorecards as depicted in the figure below.

Levels of scorecard example

ResourceManagement

ServiceDelivery

Governance

ServiceDeliverables

Governance Process

Development

ResourceManagement

Audience:• Public• Council• Exco

Audience:•Management Team• Standing Committee

ServiceGoals

The Strategic Scorecard: The strategic scorecard will provide an overall picture of performance for the municipality as a whole, reflecting performance on its strategic priorities. The Municipal Manager and Managers of Departments will use it after review as a basis for reporting to the Executive Committee, Council and the public. In terms of this policy this scorecard is to be reported to Executive Committee quarterly, to Council six-monthly and the public annually for review. Service Scorecards: The service scorecards will capture the performance of each defined service (can be a directorate or department line-function). Unlike the strategic scorecard, which reflects on the strategic priorities of the municipality, a service scorecard will provide a comprehensive picture of the performance of that service. It will consist of objectives, indicators and targets derived from the service plan and service strategies. It will be crucial that service scorecards should not duplicate current reporting, but be integrated to form a core component and simplify all regular reporting from departments to the Municipal Manager and Standing Committees. Service Scorecards will be comprised of the following components:

Service Outcomes, which set out the developmental outcomes that the service is to impact on,


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Service Deliverables, which set out the products and services that the service will deliver,

Resource Management, which sets out how the service will manage its Human and Financial resources, Information and Organisational Infrastructure

Stakeholder Relations, which sets out how the service will improve its relationship with its key stakeholders

Performance in the form of a service scorecard will be reported to the Municipal Manager and relevant Standing Committee for review. The policy provides for the reporting in terms of this level of scorecard to be undertaken at least monthly. The policy assumes that the reporting on this level scorecard will be preceded by internal departmental reporting (reports from unit managers and supervisors to be consolidated by the head of departments) which is expected to happen more regularly than monthly intervals and would ideally inform the monthly management reports. The policy suggests that municipal scorecard formats be designed to reinforce aggregation of information and alignment with service delivery budget and implementation plans (SDBIPs).

15.9 Monitoring and measurement of indicators

For each indicator the scorecard require a responsible official, usually the respective line manager, to be designated by name. While this official is not necessarily fully accountable for performance on this indicator, he/she has the responsibility for conducting measurements of that indicator, analyzing information and reporting results for reviews. Analysis requires that line managers compare current performance with targets, past performance and possibly the performance of other municipalities, where data is available, to determine whether or not performance is poor. They should also analyse the reasons for performance levels and suggest corrective action where necessary. Municipal-wide outcome indicators and satisfaction surveys may need to be co-ordinated centrally. It is recommendable that the PMS coordinator be tasked with this responsibility. An effort should also be made to undertake regular (annually) surveys in order to provide data for indicators organizationally and for the different service scorecards:

16 Performance reporting and auditing

The following figure outlines the envisaged PM reporting processes and lines of authority.

Reporting process flow


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Planning

& LED

Technical

Services

Manager’s

Office

Community

Services

Corporate

ServicesFinance

Management Report

Monthly

Council Report

Annually

Exco Report

Quarterly

Public

PDLG&TA

AG / Treasury

Committees

Management

Audit Committee

Section Heads

Management

IDP Clusters

Audience

Audience

Audience

STRATEGIC

LEVEL

MANAGEMENT

LEVEL

Budget & Treasury

Performance reporting: As indicated in the above diagram reporting will commence from the internal department (weekly and chaired by HoD) then cascade to management (receive monthly management reports and chaired by municipal manager), thereafter, a bi-monthly report will be tabled to Exco by management. This report will move be consolidated with comments of Exco into a quarterly report to be tabled to council. At least two six-monthly reports will be forwarded for auditing by the audit committee during January and June of each year. At the end of the year, an annual performance report will be produced and summarized for public reporting by the mayor via Imbizos and by the manager to auditor general and PDLGH&TA. Quality Control: All auditing should comply with Section 14 of the Municipal Planning and Performance Management Regulations (2001). Managers responsible for line functions should undertake quality control of the information gathered and presented in the scorecard. Co-ordination: The performance management coordinator is required by the framework to co-ordinate and ensures good quality of reporting and reviews. It is his or her role to ensure conformity to reporting formats and check the reliability of reported information, where possible or when asked to do so by Exco / council. Performance Investigations: This policy provides for the Executive Committee or Audit Committee when deemed necessary to can commission in-depth performance investigations where there is either continued poor performance, a lack of reliability in the information being provided or on a random ad-hoc basis. Performance investigations could cover assessment of:

The reliability of reported information The extent of performance gaps from targets The reasons for performance gaps Corrective action and improvement strategies Validity of evidence material submitted in support of claims

While the internal audit function may be used to conduct these investigations, it is preferable that external service providers, preferably academic institutions/practitioners, who are experts in the area to be audited, should be used. Clear terms of reference will need to be adopted by the Executive Committee, should such a need for investigation arise. Audit Committee: As indicated earlier the municipality will make use of the district committee via a service level agreement. This facility will be complemented by the internal audit function which shall have been made by extending the current terms of reference for the existing audit committee currently responsible for financial statements to also cater for auditing of PM reports at least twice per annum.


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17 Performance reviews

Performance reviews must be conducted at various intervals and levels of authority in order to determine as to the progress made against committed performance targets. Every review session must be documented and evidence material filed in case it is called by senior level reviews or the audit committee. Prior to reviews taking place by the Management Team, Executive Committee and Council, performance reporting will need to be tracked and co-ordinated. The Performance Management coordinator is responsible for this process. It will also be useful to provide an overall analysis of municipal performance with respect to the strategic scorecards and department scorecards, at least for quarterly and annual reviews. Such an analysis could pick up trends in performance over time and over all departments. It is proposed that the Performance Management Coordinator be responsible for this.

17.1.1 How should reviews be conducted?

The following figure provides a guideline for setting-up a review process.

Basis for review Key Result Areas


The review

Define the review process

Prepare for the review

Undertaking review interview

The review improvement plan

Define actions to be taken

Agree on timelines

Incorporate in the personal dev. goals

Coaching to improve performance

Coaching plan

Coaching action plan

Cycle of

Performance

review

PROPOSED REVIEW PROCESS

The review process should involve the following guideline steps:

1. Prepare for the review

Set appointments and schedule interview sessions

Produce and circulate scorecard templates (FORMS)

Commission self-appraisals 2. Conduct review interviews 3. Discuss and agree on improvement plan 4. Feedback review outcomes to those concerned

During the review, the reviewing person / committee or structure must ensure the following things happen:

Confirm what is expected of employee / department being reviewed


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Encourage those reviewed to feel comfortable and create conducive atmosphere for discussing issues frankly and fairly

Fairly and equitably measure performance of individual / department.

Agree on the final determination of performance achieved

Identify strengths and areas of improvement

Give feedback in terms of the reward/ recognition of good performance / excellence or the steps to be taken to address poor performance

Align individual performance behaviour with organizational performance goals (IDP vision)

Incorporate lessons of the previous year’s performance into the following year’s performance (Learning curve) by jointly developing a Performance Improvement Plan with the manager concerned

Agree on a performance improvement plan

If the review session is to lead to the determination of salary progressions and bonuses in the case of individual management reviews, then the following rules should apply:

1) Determination of final scores will be based on the scoring model which uses a rating scale of 1 – 5 combined with point system

2) The employee will be allowed during the review to provide evidence to his /her claims should this be necessary

3) An aggregate score should be determined after adding all KPA scores achieved in the review

4) The decision of the audit committee ON SCORES is final 5) A manager can only qualify for a bonus portion when he/ she has achieved a minimum

of level 3 overall score a. A score of 251 – 300 will qualify for 50% of bonus possible b. A score of 301 – 350 will qualify for 60% of bonus possible c. A score of 351 – 400 will qualify for 75% of bonus possible d. A score of 401 – 450 will qualify for 90% of bonus possible e. A score of 451 – 500 will qualify for 100% of bonus possible

Points Rating Meaning

451-500 5 outstanding performance

351-450 4 commendable performance

251-350 3 satisfactory performance

151-250 2 marginal performance

0-150 1 unsatisfactory performance

Combining points & rating on a scale Combining points & rating on a scale

with 5 levelswith 5 levels


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EXPLANATION OF LEVELS

Level 5: Outstanding performance: Performance far exceeds the standard expected of a member at this level. The incumbent has achieved exceptional results against all performance criteria agreed and has maintained this all year round.

Level 4: Performance significantly above expectations. Significantly higher than expected. Incumbent has achieved exceptional results against more than half of the performance criteria and indicators and fully achieved all others throughout the year.

Level 3: Fully effective. Performance fully meets the standard expected in all areas of the job. Incumbent has achieved results against all significant performance criteria and indicators and incumbent has achieved results significantly above expectation in one or two less significant areas.

Level 2: Performance is below standard required for the job in key areas(judge per weight etc). Incumbent has achieved adequate results against many key but not all others during the course of the year.

Level 1: Performance does not meet the standard expected for the job. The incumbent has not met one or more fundamental requirements and / or is achieved results that are below expectation in most result areas.

17.1.2 Suggested levels of reviews

Section 56 Management Reviews: It is intended that a review committee comprising of the municipal manager, a standing committee councilor of that department and an independent auditor who must be a member of the audit committee review their performance of a section 56 manager at least every second month, using his/her personal contract scorecard. Managers will be reviewed on their overall annual performance during the period 01 July and 30 July of every year to conclude the year ended 30 June and to determine salary progression moves and bonuses. Departmental Reviews: It is intended that departments review their performance at least monthly, using their department scorecards and SDBIPs. Decision-makers should be immediately warned of any emerging failures to service delivery to ensure that they can intervene if necessary. It is important that departments use these reviews as a platform to reflect on their goals and programmes and whether these are being achieved. Minutes of these reviews should be forwarded to the performance management coordinator. Changes in indicators and targets may be proposed at this meeting but can only be approved by the relevant standing committee, in consultation with the Performance Management Coordinator. Management Team Reviews: Departments have to report on their performance in the department scorecard format to the Municipal Manager and the Managers of departments every month. These reviews must also provide for section 56 mangers to report on their individual scorecards to the municipal manager. In order to avoid duplication of reporting efforts the SDBIPs must also be reported at these platforms. Additional indicators that occur in the departmental scorecard & SDBIP should also be reviewed. The formulation of the process of review will be co-ordinated by the proposed performance management coordinator. The Management Team will need to reflect on whether targets are being achieved, what are the reasons for targets not being achieved where applicable and corrective action that may be necessary. Where targets need to be changed, the Management Team can endorse these, for approval by the relevant standing Committee. The Management Team can delegate tasks to the performance management coordinator in developing an analysis of performance prior to Management Team reviews. Standing Committee Reviews: Each Standing Committee is required to review the performance of their respective departments against their department scorecard every second month. The Standing Committee should appraise the performance targets. Where targets are


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not being met, the Standing Committee should ensure that the reasons for poor performance are satisfactory and sufficient, and the corrective strategies proposed are sufficient to address the reasons for poor performance. Changes in indicators and targets that do not appear in the strategic scorecard may be proposed to and can only be approved by the relevant Standing Committee, in consultation with the IDP manager and Performance Management Coordinator (Strategic Planning Manager). Changes in indicators and targets that fall within the strategic scorecard will need to be approved by the Exco / Council. Executive Committee Reviews: On a quarterly basis, the Executive Committee is tasked to engage in an intensive review of municipal performance against both the department scorecards and the strategic scorecard, as reported by the Municipal Manager. This must also incorporate reviews based on SDBIPs in order to avoid duplication of reporting processes. Many of the indicators in the strategic scorecard will only be measurable on an annual basis. The quarterly reviews should thus culminate in a comprehensive annual review of performance in terms of both scorecards. The review should reflect on the performance of services and the strategic scorecard. The Executive Committee will need to ensure that targets committed to in the strategic scorecard are being met, where they are not, that satisfactory and sufficient reasons are provided and that the corrective action being proposed is sufficient to address the reasons for poor performance. The review should also focus on reviewing the systematic compliance to the performance management system, by departments, Standing Committees and the Municipal Manager. Incentives for Excellent Performance: It is the intention of the PMS framework that the Executive Committee not only pays attention to poor performance but also to good performance. It is expected of the Executive Committee to acknowledge good performance, where departments have successfully met targets in their department scorecards. Council Reviews: At least annually, the Executive Committee is required to report to Council on municipal performance. This reporting takes place using the strategic scorecard in an annual report. The Municipal Systems Act requires that the annual report should at least constitute a performance report (the strategic scorecard), financial statements and an audit report. Public Reviews: The Municipal Systems Act requires the public to be given the opportunity to review municipal performance. Therefore in addition to the annual report mentioned above, user-friendly citizens’ report is intended to be produced as part of our PMS for public consumption. The citizens’ report has not yet been produced at our municipality but it is envisaged to be a simple, easily readable and attractive document that translates the strategic scorecard for public consumption. It is envisaged also that a public campaign shall be annually embarked on to involve citizens in the review of municipal performance. Such a campaign could involve the following methodologies:

Ward committees would be reported to (once systems are developed fully) and submit their review of the municipality to council. The performance management team should be used to summarize this input.

Various forms of media including radio, newspapers and billboards would be used to convey the citizens’ report. The public should be invited to submit comment via telephone, fax, email and public hearings to be held in a variety of locations.

The public reviews are planned to be concluded by a review by the Integrated Development Plan Representative Forum or Mayoral Imbizos.


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17.1.3 Evaluation and improvement of the municipal PMS

The Municipal Systems Act requires the Sakhisizwe Local Municipality to annually evaluate its performance management system. At the end of the planning year cycle as part of the annual review of the municipality’s IDP, the council must always evaluate:

The adherence of the performance management system to the Municipal Systems Act.

The fulfilment of the objectives for a performance management system captured earlier in this document.

The adherence of the performance management system to the principles captured earlier in this and those subscribed to in terms of the Batho Pele white paper discussed under section 3 of this document.

Opportunities for improvement and a proposed action plan for areas to be revised.

The process of implementing a performance management system in Sakhisizwe LM is viewed

as a learning process, where we are continuously improving the way the system works to fulfil

the objectives of the system and address the emerging challenges from a constantly changing

environment.


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APPROVAL

This IDP review 2015-2016 was prepared in line with adopted process plan and contains an outcome of a consultative process of planning involving all our municipal stakeholders through the representative forum and steering committee.

This document is now tabled to the Sakhisizwe Municipal Council for adoption and thereafter to be used in facilitating comments by our stakeholders.

An advert inviting stakeholder comments was issued following council adoption of the draft plan at its meeting scheduled for 28 March 2015. The document was then used to guide comments and taken on a road show by the Mayor in the first weeks of April 2015.

Copies of this plan together with its accompanying draft budget were made available in our public libraries and municipal offices in Elliot, Cala and Askeaton for access by public.

It is therefore declared by Sakhisizwe Council that this is a true reflection of our planning efforts and will as such be supported and implemented by all our stakeholders during its tenure.

THUS THIS DOCUMENT IS ADOPTED AS OUR IDP REVIEW 2015-2016 THROUGH A COUNCIL RESOLUTION LISTED BELOW

COUNCIL RESOLUTION NUMBER FOR IDP ADOPTION: …………………………..

SIGNATURES ………………………………… THEMBENI SAMUEL DATE________________________ MUNICIPAL MANANGER …………………………….. COUNCILOR: JENTILE HON. MAYOR DATE _________________________


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18 ANNEXURE 01: Approved Detail Organogram

MUNICIPAL MANAGER SLMMM 001

Manager: Community Services

(Section 57)SLMCOM 001

Manager: Corporate Services

(Section 57)SLMCS 001

Manager: Technical Services &

Infrastructure (Section 57)SLMTSI 001

Chief Finance Officer: Finance

(Section 57)SLMFIN 001

SAKHISIZWE LOCAL MUNICIPALITY

Top Management StructureAnnexure 1

NOTES:

1. The top structure indicates a best fit for service delivery and work flow and processes. Hence five (5) Directorates have been identified.

2. Directors are Section 57 Designated Employees.

3. Managers are non-Section 57 Employees. All Directors roles and responsibilities must be clearly defined in agreed job descriptions .

4. Post Identification Numbers meeting the SALGBC requirements have been identified. These have been done in alpha-numeric sequence

where the alphabets reflect the Departmental code e.g. COM being Community Services and the numbers follow in sequential

order.

5. Designations are consistent with SALGBC National Designations.

6. A maximum of six (6) reporting levels have been identified with the relevant span of controls being considered.

7. The current staff establishment shall determine new and vacant posts and the associated costs thereof.

Vacant

New

Sections

Filled

Manager: Integrated Planning & Economic

Development(Section 57)

SLMIPED001


IDP REVIEW 219/213

MUNICIPAL MANAGERSLMMM 001


Office of the Municipal ManagerAnnexure 1.1

Manager: Strategic Support

SLMMM002

Internal Audit & Risk Management

SLMMM

Integrated Development

Planning/ PMS

Communications & Marketing

See Annexure 1.1.2

Councilor Support See Annexure

1.1.1

Senior internal auditor/ riskSLMMM005

IDP Officer SLMMM009

Admin officer Councilor Support

SLMMM004

Internal Auditor SLMMM007

Risk management officer

Vacant

Occupied

Sections

New

Secretary

PMS OfficerSLMMM010


IDP REVIEW 220/213


Office of the Municipal Manager – Council SupportAnnexure 1.1.1

Manager: Strategic Support

SLMMM002

Special Programs Unit

Office of the Executive Mayor

Secretary

SPU CoordinatorSLMMM012

HIV/ AIDS Coordinator SLMMM013

Office of the Speaker

Secretary


IDP REVIEW 221/213

Manager: Strategic Support SLMMM002


Office of the Municipal Manager – Communications & MarketingAnnexure 1.1.2

Communications & Marketing

Senior Communications & Marketing Officer

SLMMM015

Coordinator: Community

Participation & Bato Pele

SLMMM017

Communications & Marketing Officer

SLMMM016


IDP REVIEW 222/213

Manager: Corporate Services(Section 56) SLMCS001

Secretary CS 006

SLMCS002


CORPORATE SERVICESTOP MANAGEMENT STRUCTURE

ANNEXURE 2

Manager: Human Resource Development

& Administration (See Annexure 2.1)

SLMCS003

Vacant

Filled

Sections

New

Manager : Fleet Management


IDP REVIEW 223/213

Manager: Corporate Services SLMCS001

Manager: Human Resources

Development & Administration SLMCS003

CORPORATE SERVICESHuman Resource Development

ANNEXURE 2.1

Labour relation officer

Human Resource Officer:

SLMCS008

Skills Development & Employment Equity

OfficerSLMCS009

EAP Practitioner SLMCS005

Occupational Health and Safety Officer

Personnel Clerk


IDP REVIEW 224/213

Manager: Corporate Service

SLMCS001

CORPORATE SERVICESADMINISTRATION

ANNEXURE 2.2

Manager: Human Resource

Development & Administration SLMCS003

Manager: Fleet Management SLMCS010

Transport Officer SLMCS012

Admin Officer

Clerk: Committees SLMCS019

Records & Archives Clerk

SLMCS017

Receptionist/ Switchboard Operator

SLMCS015

General Worker/ Cleaners

SLMCS020

Registry/ Filing Clerk SLMCS018

Driver/ Messenger SLMCS016

IT Technician SLMCS021


IDP REVIEW 225/213

Chief Financial Officer

SLMFIN001

Manager: Budget & Treasury & Financial

SystemsSee Annexure 3.2

SLMFIN004


FINANCE DEPARTMENTTOP MANAGEMENT STRUCTURE

ANNEXURE 3

Vacant

Filled

Sections

New

Manager: Expenditure & Supply Chain Management

See Annexure 3.2SLMFIN005

Manager: Income/ Revenue

See Annexure 3.1SLMFIN006


IDP REVIEW 226/213


SLMFIN001

FINANCE DEPARTMENT

Income/ Revenue ANNEXURE 3.1

Manager: Income/ Revenue

SLMFIN006

Accountant SLMFIN007

Credit Controller SLMFIN008

Clerk: Debtors x2 SLMFIN010 Cashier (1 x Cala; 1 x

Elliot) SLMFIN009

Account issuer 1 occupied, vacancies 5 and meter readers 6

Foreman account issuer and metre reader

Free Basic Services Co-ordinator


IDP REVIEW 227/213


Sec56 managerSLMFIN001

FINANCE DEPARTMENTBudget & Treasury/ Expenditure & SCM

ANNEXURE 3.2

Manager: Expenditure & Supply Chain ManagementSLMFIN005

Manager: Budget & Treasury & Financial

SystemsSLMFIN006

Budget And treasury officer

Supply Chain Management Officer

SLMFIN016

Accountant: Expenditure SLMFIN014

Payroll Officer SLMFIN017

Assets & Risk Management Officer

SLMFIN015

Office Assistants/ Cleaners

SLMFIN018

Financial Systems Analyst

SLMFIN013

Stores ControllerSLMFIN019

Clerk: ExpenditureSLMFIN021

Clerks: SCM : Procurement : Assets SLMFIN020


IDP REVIEW 228/213

Manager: Community ServicesSection 56

SLMCOM001

Assistant Manager: Community Services

SLMCOM003See Annexure 4.1


Community Services Department

TOP STRUCTUREANNEXURE 4

Superintendent Traffic & Law EnforcementSLMCOM004

See Annexure 4.2

Vacant

Filled

Sections

New

Disaster management officer x2


IDP REVIEW 229/213

Manager: Community & Social Servicers

SLMCED001

Assistant manager: Community Services

SLMCED003


Community ServicesANNEXURE 4.1

Waste & Cleansing Services

Ponds/ Commonages

Cemeteries

Recreation/ Halls & Sportfields

Libraries

Librarian (Elliot x1; Cala x1)

SLMCOM005

Caretaker: Cemetery x2

SLMCOM007

Superintendent: Waste Management SLMCOM009

Rangers x6 SLMCOM016

Caretaker: Halls x4 SLMCOM017

Cleaner/ General Assistants

SLMCOM006

General Assistant: Cemetery x4

SLMCOM008

Foreman(Elliot)

SLMCOM010

Foreman(Cala)

SLMCOM011

General Assistant: Refuse x10

SLMCOM012

General Assistant: Refuse x14

SLMCOM013

Caretaker: Sportsfields x2

SLMCOM019

General Assistant: Halls x4

SLMCOM018

General Assistant: Sportsfields x4 SLMCOM020

Caretaker: Solid Waste Sites x2

SLMCOM014

General Assistant: Street Sweeping/

Parks/ Grass Cutting: Elliot x8; Cala x8 SLMCOM015

Pound Master x2


IDP REVIEW 230/213

Manager: Community Services SLMCOM001


Traffic & Law EnforcementANNEXURE 4.2

Superintendent: Traffic & Law EnforcementSLMCOM004

Chief Traffic Officer SLMCOM021

Administration Officer: ENaTIS

SLMCOM022

Cashier: ENaTIS SLMCOM023

Office Assistant: Cleaner (Traffic Test

Station) SLMCOM024

Traffic Officer – Law Enforcement

SLMCOM026 x 4

Examiner: Drivers License Testing Centre

x2SLMCOM027

Handyman: Line Painter & Signs SLMCOM025

Examiner: Vehicle Testing Centre SLMCOM028

Pit Assistant x1 SLMCOM029


IDP REVIEW 231/213

Manager: Technical

Services sec56SLMTS001

Superintendent: Electrical

See Annexure 5.1SLMTS005


TECHNICAL SERVICESTOP MANAGEMENT STRUCTURE

ANNEXURE 5

Vacant

Filled

Sections

New

Superintendent: RoadsSee Annexure 5.1

SLMTS004

Area Manager: Water & Sanitation

See Annexure 5.2SLMTS006

Manager: PMU See Annexure 5.1

SLMTS003


IDP REVIEW 232/213

Manager: Technical

ServicesSLMTS001

Superintendent: Electrical

SLMTS005

TECHNICAL SERVICESPMU/ ROADS/ ELECTRICAL

ANNEXURE 5.1

Roads/ Public WorksTechnicianSLMTS004

Manager: PMU SLMTS003

Technician: Civil/ Projects SLMTS007

Technician: Water/ Sewerage

SLMTS008

Financial Controller SLMTS009

Building Control SLMTS011

Plant Operators: Heavy Plant x3

SLMTS012

General Assistant: Buildings

x2SLMTS014

Truck Drivers x3 SLMTS013

General Assistants x16 SLMTS015

Artisan Electrician SLMTS016

Handyman: Electrical SLMTS017

Meter Readers x 6 SLMTS018

Administration Officer SLMTS010

ISD Officer

EPWP CORDINATOR


IDP REVIEW 233/213

TECHNICAL SERVICESWater Services Provision & Sanitation

Annexure 5.2

Area Manager SLMTS006

Technician: Electro/ Mechanical x 2

SLMTS033

Customer Care Practitioner SLMTS034

Technician: Civil Water Services

ProvisionSLMTS027

Technician: Water Quality

SLMTS035

Artisan Foreman x 4 SLMTS028

Artisan Plumber SLMTS029 x 2

Administration Officer SLMTS019

Senior Financial Controller

SLMTS022

Admin Clerk SLMTS021

Cleaner SLMTS020

Plant Operator: Water Purification

SLMTS030 x 4

Artisan Foreman: Sanitation

SLMTS023 x 1 Elliot

Plant Operator: Sewerage Plant SLMTS024 x 4

General Assistant: Sewerage Maintenance vacancies 4 occupied

x2SLMTS025

General Assistant: Sewerage Plant x4

SLMTS026

General Assistant: Water Maintenance occupied x4

vacancies x4

SLMTS031

General Assistant occupied x10 vacancies 8 SLMTS032

Artisan Foreman: Sanitation

SLMTS023 x 1 Cala

Assistant Customer Care Practitioner

SLMTS034Truck Drivers x 3


IDP REVIEW 234/213