DRAFT DISTRICT DEVELOPMENT PLAN AND BUDGET FOR
Description: DRAFT DISTRICT DEVELOPMENT PLAN AND BUDGET FOR 2020-2021 MAY 2020 PRESENTED BY EXECUTIVE MAYOR: CLLR KEAMOTSENG STANLEY RAMAILA 1 CONTENTS Legislative background DDPBudget process (roadmap) Powers and functions Vision and Mission
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slide1. DRAFT DISTRICT DEVELOPMENT PLAN AND BUDGET FOR 2020-2021
MAY 2020
PRESENTED BY EXECUTIVE MAYOR: CLLR KEAMOTSENG STANLEY RAMAILA 1<br>
slide2. CONTENTS Legislative background
DDP/Budget process (roadmap)
Powers and functions
Vision and Mission statements
Core Values
Motto and Slogan
Mayoral Strategic Priorities
Demographics (population, wards, households)
Projects and programmes for 2020-2021
Institutional Development and Organisational Transformation
Draft budget 2020-2021 2<br>
slide3. 1. LEGISLATIVE BACKGROUND Local Government: Municipal Systems Act, 2000 (Act 32 of 2000):
Section 34 requires that each municipality must annually review its Integrated Development Plan (IDP)
Section 29 (b) requires that local community be consulted on drafting of the IDP
Local Government: Municipal Finance Management Act (MFMA) number 56 of 2003:
Section 23 (a) requires that the Council must consult the local community on the tabled draft budget 3<br>
slide4. 1. LEGISLATIVE BACKGROUND The District Municipality has developed a draft District Development Plan / One Plan in line with the announcement made by the President in 2019, that planning for service delivery should hence forth be consolidated at district level.
The District Development Plan aims to encourage better coordination and cooperation in government to improve coherence in planning and implementation across all spheres of governance. 4<br>
slide5. 2. THE DDP/BUDGET PROCESS(ROADMAP) The IDP/Budget Framework and Process Plan for 2020-2021 was adopted by Council in July 2019.
The District Profile was developed and adopted by Council in February 2020.
The District Strategic Planning Session was held from 05-06 February 2020.
The Draft DDP/Budget for 2020/2021 was noted in a Council sitting held on the 26th March 2020. 5<br>
slide6. 2. THE DDP/BUDGET PROCESS(ROADMAP) The Draft DDP/Budget for 2020/2021 is currently undergoing public consultations until the 22nd May 2020 as per the advert issued on the 2ndApril 2020 by Sekhukhune Times.
The Draft DDP/Budget for 2020/2021 is available on Municipal website.
Due to COVID-19 Lockdown, the normal processes for public participation were retracted, hence today’s engagements on radio.
The inputs received since the 2nd April 2020 including those from this session, and up to the 22nd May 2020 will be considered during the finalisation of the DDP/ Budget for 2020/2021.
The Final DDP/Budget for 2020/2021 will be adopted by Council on the 28th May 2020. 6<br>
slide7. 3. POWERS AND FUNCTIONS Water and Sanitation
Fire-Fighting Services
Municipal Health Services
Local Tourism
Municipal Planning
Municipal Abbatoirs
Regional Landfill Sites
Municipal Public Transport
Municipal Airports except for Ephraim Mogale and Elias Motsoaledi 7<br>
slide8. 4. VISION AND MISSION STATEMENTS VISION
Sekhukhune District Municipality - A Leader in Integrated Economic Development and Sustainable Service Delivery.
MISSION STATEMENTS
To improve the quality of life for all communities through:
Provision of a democratic and accountable government;
Promotion of inclusive and egalitarian economic transformation;
Promotion of a safe and healthy environment;
Fostering of community involvement and stakeholder engagement;
Strengthening institutional capacity;
Promotion of social cohesion 8<br>
slide9. 5. CORE VALUES OF THE MUNICIPALITY H-onesty
E-xcellence
A-ccessibility
R-espect
T-ransparency
Abbreviated as ‘HEART’. 9<br>
slide10. 6. MOTTO AND SLOGAN Motto
Re a aga/Siyakha – meaning ‘we are building’.
Slogan
Destination for economic growth and development. 10<br>
slide11. 7. MAYORAL STRATEGIC PRIORITIES Provision of water and sanitation services in a sustainable mannerÂ
Local economic development, growth and job creation through agrarian reform, mining, tourism and repositioning of SDA
Good governance and sound financial managementÂ
Sustainable land use management and spatial transformationÂ
Community development, social cohesion and nation buildingÂ
Public participation, stakeholder engagements and partnerships 11<br>
slide12. 8. DEMOGRAPHICS: POPULATION FIGURES 12 (Source: Community Survey 2016 and Census 2011)<br>
slide13. DEMOGRAPHICS CONT.: WARDS AND VILLAGES 13 (Source: The Demarcation Board, 2016 and Ward Committee study 2015/16)<br>
slide14. DEMOGRAPHICS CONT.: HOUSEHOLDS 14 (Source: Community Survey 2016 and Census 2011)<br>
slide15. 9. PROJECTS AND PROGRAMMES FOR 2020-2021 15<br>
slide16. WATER SERVICES – RBIG FUND 16<br>
slide17. WATER SERVICES – O & M EXPENDITURE 17<br>
slide18. WATER SERVICES – WSIG FUND 18<br>
slide19. WATER SERVICES – MIG FUND 19<br>
slide20. WATER SERVICES – MIG FUND 20<br>
slide21. MUNICIPAL HEALTH SERVICES 21<br>
slide22. EMERGENCY MANAGEMENT SERVICES 22<br>
slide23. DISASTER MANAGEMENT SERVICES 23<br>
slide24. SPATIAL RATIONALE<br>
slide25. LOCAL ECONOMIC DEVELOPMENT (LED) 25<br>
slide26. SEKHUKHUNE DEVELOPMENT AGENCY(SDA) 26<br>
slide27. SDA (Continued) 27<br>
slide28. INSTITUTIONAL DEVELOPMENT AND ORGANISATIONAL TRANSFORMATION 28<br>
slide29. INSTITUTIONAL DEVELOPMENT AND ORGANISATIONAL TRANSFORMATION Continued 29<br>
slide30. INSTITUTIONAL DEVELOPMENT AND ORGANISATIONAL TRANSFORMATION Continued 30<br>
slide31. INSTITUTIONAL DEVELOPMENT AND ORGANISATIONAL TRANSFORMATION Continued 31<br>
slide32. INSTITUTIONAL DEVELOPMENT AND ORGANISATIONAL TRANSFORMATION Continued 32<br>
slide33. INSTITUTIONAL DEVELOPMENT AND ORGANISATIONAL TRANSFORMATION Continued 33<br>
slide34. FINANCIAL VIABILITY 34<br>
slide35. DRAFT BUDGET 2020/2021 35<br>
slide36. UNDERLYING BUDGET PRINCIPLES FOR 2020/2021 To eliminate budget deficit and ensure that the budget is cash backed.
Prioritise key services for provision of water and sanitation as well as funding contractual obligations.
Only critical posts to be filled in order to manage and stabilise personnel costs and keep the costs 42% to total operating expenditure. 36<br>
slide37. UNDERLYING BUDGET PRINCIPLES FOR 2020/2021 Continued Implement cost reflective tariffs in order to reduce reliance on government subsidies and grants.
Take into account national imperatives such as mSCOA and budgeting for asset maintenance and refurbishment.
Reduce spending on non priority spending including overtime, travelling costs, security and fleet management. 37<br>
slide38. MUNICIPAL REVENUE The total operating revenue for 2020/21 financial year is R1,147 billion, which decreases to R1,138 billion in the 2022/23 financial year.
The capital revenue for the 2020/21 is budgeted at R586,6 million and will decrease to R761,8 million in the 2022/23 financial year. 38<br>
slide39. REVENUE BUDGET 2020/2021 39<br>
slide40. CAPITAL EXPENDITURE The total capital expenditure from grants for 2020/2021 is R586,6million; SDM capital expenditure is R3,5million totalling to R590million increasing to R818,5million in the 2021/22 financial year and then decreasing to R761,8million in the 2022/23 financial year.
The capital expenditure will be funded from the following sources: 40<br>
slide41. CAPITAL EXPENDITURE SOURCES 2020/2021 41<br>
slide42. OPERATING EXPENDITURE The total operating expenditure for 2020/2021 is budgeted at R967,4million increasing to R1billion in 2021/22 and then further increasing to R1,1billion in 2022/23 financial year. 42<br>
slide43. SURPLUS/DEFICIT The operating surplus of R179.8m will be utilised to finance capital assets to an amount of R3.5m resulting in a net surplus of R176.3m
The municipality has budgeted an operating surplus of R179.8m in the 2020/21 financial year which translates to R130m according to the current collection rate of 60%. 43<br>
slide44. DEPARTMENTAL BUDGET ALLOCATIONS 2020/2021 44<br>
slide45. EMPLOYEES RELATED COSTS 2020/2021 45<br>
slide46. INTRODUCTION TO TARIFFS FOR 2020/2021 Sekhukhune District Municipality uses block tariff approach where the more services you use, the more you pay.
For Indigent households the Municipality is offering the first 6 kilolitres (6000 litres) free and if indigent households consume more than 6kl, then they must start paying for consumption.
The Municipality has decreased its tariffs by 8% in an endeavour to have an affordable tariff after consultation with rate payers association. 46<br>
slide47. TARIFFS FOR 2020/2021 The water consumption tariffs in the 2020/2021 year are decreasing by 8%.
The sewerage tariffs and all other tariffs not related to water charges will increase by 5% in the 2020/2021 financial year. 47<br>
slide48. CONCLUSION The Draft DDP/Budget is on SDM website at http://www.sekhukhunedistrict.gov.za
Comments can be forwarded to Department of Planning and Economic Development to Ms Rebotile Makgati at 060 525 6862 or Ms Zanele Mkwanazi at 083 439 6440, Email to: makgatir@sekhukhune.gov.za or mkhwanaziz@sekhukhune.gov.za
The closing date for all comments is 22 May 2020. 48<br>
slide49. Glossary BWS: Bulk Water Services
M&E: Mechanical and Electrical
PS: Pump Station
RES: Reservoir
RWS: Regional Water Services
VIP: Ventilated Improved Pit
VIDP: Ventilated Improved Double Pit
WDM: Water Demand Management
WTW: Water Treatment Works
DDP: District Development Plan
IDP: Integrated Development Plan 49<br>
slide50. Thank You 50<br>
MAY 2020
PRESENTED BY EXECUTIVE MAYOR: CLLR KEAMOTSENG STANLEY RAMAILA 1<br>
slide2. CONTENTS Legislative background
DDP/Budget process (roadmap)
Powers and functions
Vision and Mission statements
Core Values
Motto and Slogan
Mayoral Strategic Priorities
Demographics (population, wards, households)
Projects and programmes for 2020-2021
Institutional Development and Organisational Transformation
Draft budget 2020-2021 2<br>
slide3. 1. LEGISLATIVE BACKGROUND Local Government: Municipal Systems Act, 2000 (Act 32 of 2000):
Section 34 requires that each municipality must annually review its Integrated Development Plan (IDP)
Section 29 (b) requires that local community be consulted on drafting of the IDP
Local Government: Municipal Finance Management Act (MFMA) number 56 of 2003:
Section 23 (a) requires that the Council must consult the local community on the tabled draft budget 3<br>
slide4. 1. LEGISLATIVE BACKGROUND The District Municipality has developed a draft District Development Plan / One Plan in line with the announcement made by the President in 2019, that planning for service delivery should hence forth be consolidated at district level.
The District Development Plan aims to encourage better coordination and cooperation in government to improve coherence in planning and implementation across all spheres of governance. 4<br>
slide5. 2. THE DDP/BUDGET PROCESS(ROADMAP) The IDP/Budget Framework and Process Plan for 2020-2021 was adopted by Council in July 2019.
The District Profile was developed and adopted by Council in February 2020.
The District Strategic Planning Session was held from 05-06 February 2020.
The Draft DDP/Budget for 2020/2021 was noted in a Council sitting held on the 26th March 2020. 5<br>
slide6. 2. THE DDP/BUDGET PROCESS(ROADMAP) The Draft DDP/Budget for 2020/2021 is currently undergoing public consultations until the 22nd May 2020 as per the advert issued on the 2ndApril 2020 by Sekhukhune Times.
The Draft DDP/Budget for 2020/2021 is available on Municipal website.
Due to COVID-19 Lockdown, the normal processes for public participation were retracted, hence today’s engagements on radio.
The inputs received since the 2nd April 2020 including those from this session, and up to the 22nd May 2020 will be considered during the finalisation of the DDP/ Budget for 2020/2021.
The Final DDP/Budget for 2020/2021 will be adopted by Council on the 28th May 2020. 6<br>
slide7. 3. POWERS AND FUNCTIONS Water and Sanitation
Fire-Fighting Services
Municipal Health Services
Local Tourism
Municipal Planning
Municipal Abbatoirs
Regional Landfill Sites
Municipal Public Transport
Municipal Airports except for Ephraim Mogale and Elias Motsoaledi 7<br>
slide8. 4. VISION AND MISSION STATEMENTS VISION
Sekhukhune District Municipality - A Leader in Integrated Economic Development and Sustainable Service Delivery.
MISSION STATEMENTS
To improve the quality of life for all communities through:
Provision of a democratic and accountable government;
Promotion of inclusive and egalitarian economic transformation;
Promotion of a safe and healthy environment;
Fostering of community involvement and stakeholder engagement;
Strengthening institutional capacity;
Promotion of social cohesion 8<br>
slide9. 5. CORE VALUES OF THE MUNICIPALITY H-onesty
E-xcellence
A-ccessibility
R-espect
T-ransparency
Abbreviated as ‘HEART’. 9<br>
slide10. 6. MOTTO AND SLOGAN Motto
Re a aga/Siyakha – meaning ‘we are building’.
Slogan
Destination for economic growth and development. 10<br>
slide11. 7. MAYORAL STRATEGIC PRIORITIES Provision of water and sanitation services in a sustainable mannerÂ
Local economic development, growth and job creation through agrarian reform, mining, tourism and repositioning of SDA
Good governance and sound financial managementÂ
Sustainable land use management and spatial transformationÂ
Community development, social cohesion and nation buildingÂ
Public participation, stakeholder engagements and partnerships 11<br>
slide12. 8. DEMOGRAPHICS: POPULATION FIGURES 12 (Source: Community Survey 2016 and Census 2011)<br>
slide13. DEMOGRAPHICS CONT.: WARDS AND VILLAGES 13 (Source: The Demarcation Board, 2016 and Ward Committee study 2015/16)<br>
slide14. DEMOGRAPHICS CONT.: HOUSEHOLDS 14 (Source: Community Survey 2016 and Census 2011)<br>
slide15. 9. PROJECTS AND PROGRAMMES FOR 2020-2021 15<br>
slide16. WATER SERVICES – RBIG FUND 16<br>
slide17. WATER SERVICES – O & M EXPENDITURE 17<br>
slide18. WATER SERVICES – WSIG FUND 18<br>
slide19. WATER SERVICES – MIG FUND 19<br>
slide20. WATER SERVICES – MIG FUND 20<br>
slide21. MUNICIPAL HEALTH SERVICES 21<br>
slide22. EMERGENCY MANAGEMENT SERVICES 22<br>
slide23. DISASTER MANAGEMENT SERVICES 23<br>
slide24. SPATIAL RATIONALE<br>
slide25. LOCAL ECONOMIC DEVELOPMENT (LED) 25<br>
slide26. SEKHUKHUNE DEVELOPMENT AGENCY(SDA) 26<br>
slide27. SDA (Continued) 27<br>
slide28. INSTITUTIONAL DEVELOPMENT AND ORGANISATIONAL TRANSFORMATION 28<br>
slide29. INSTITUTIONAL DEVELOPMENT AND ORGANISATIONAL TRANSFORMATION Continued 29<br>
slide30. INSTITUTIONAL DEVELOPMENT AND ORGANISATIONAL TRANSFORMATION Continued 30<br>
slide31. INSTITUTIONAL DEVELOPMENT AND ORGANISATIONAL TRANSFORMATION Continued 31<br>
slide32. INSTITUTIONAL DEVELOPMENT AND ORGANISATIONAL TRANSFORMATION Continued 32<br>
slide33. INSTITUTIONAL DEVELOPMENT AND ORGANISATIONAL TRANSFORMATION Continued 33<br>
slide34. FINANCIAL VIABILITY 34<br>
slide35. DRAFT BUDGET 2020/2021 35<br>
slide36. UNDERLYING BUDGET PRINCIPLES FOR 2020/2021 To eliminate budget deficit and ensure that the budget is cash backed.
Prioritise key services for provision of water and sanitation as well as funding contractual obligations.
Only critical posts to be filled in order to manage and stabilise personnel costs and keep the costs 42% to total operating expenditure. 36<br>
slide37. UNDERLYING BUDGET PRINCIPLES FOR 2020/2021 Continued Implement cost reflective tariffs in order to reduce reliance on government subsidies and grants.
Take into account national imperatives such as mSCOA and budgeting for asset maintenance and refurbishment.
Reduce spending on non priority spending including overtime, travelling costs, security and fleet management. 37<br>
slide38. MUNICIPAL REVENUE The total operating revenue for 2020/21 financial year is R1,147 billion, which decreases to R1,138 billion in the 2022/23 financial year.
The capital revenue for the 2020/21 is budgeted at R586,6 million and will decrease to R761,8 million in the 2022/23 financial year. 38<br>
slide39. REVENUE BUDGET 2020/2021 39<br>
slide40. CAPITAL EXPENDITURE The total capital expenditure from grants for 2020/2021 is R586,6million; SDM capital expenditure is R3,5million totalling to R590million increasing to R818,5million in the 2021/22 financial year and then decreasing to R761,8million in the 2022/23 financial year.
The capital expenditure will be funded from the following sources: 40<br>
slide41. CAPITAL EXPENDITURE SOURCES 2020/2021 41<br>
slide42. OPERATING EXPENDITURE The total operating expenditure for 2020/2021 is budgeted at R967,4million increasing to R1billion in 2021/22 and then further increasing to R1,1billion in 2022/23 financial year. 42<br>
slide43. SURPLUS/DEFICIT The operating surplus of R179.8m will be utilised to finance capital assets to an amount of R3.5m resulting in a net surplus of R176.3m
The municipality has budgeted an operating surplus of R179.8m in the 2020/21 financial year which translates to R130m according to the current collection rate of 60%. 43<br>
slide44. DEPARTMENTAL BUDGET ALLOCATIONS 2020/2021 44<br>
slide45. EMPLOYEES RELATED COSTS 2020/2021 45<br>
slide46. INTRODUCTION TO TARIFFS FOR 2020/2021 Sekhukhune District Municipality uses block tariff approach where the more services you use, the more you pay.
For Indigent households the Municipality is offering the first 6 kilolitres (6000 litres) free and if indigent households consume more than 6kl, then they must start paying for consumption.
The Municipality has decreased its tariffs by 8% in an endeavour to have an affordable tariff after consultation with rate payers association. 46<br>
slide47. TARIFFS FOR 2020/2021 The water consumption tariffs in the 2020/2021 year are decreasing by 8%.
The sewerage tariffs and all other tariffs not related to water charges will increase by 5% in the 2020/2021 financial year. 47<br>
slide48. CONCLUSION The Draft DDP/Budget is on SDM website at http://www.sekhukhunedistrict.gov.za
Comments can be forwarded to Department of Planning and Economic Development to Ms Rebotile Makgati at 060 525 6862 or Ms Zanele Mkwanazi at 083 439 6440, Email to: makgatir@sekhukhune.gov.za or mkhwanaziz@sekhukhune.gov.za
The closing date for all comments is 22 May 2020. 48<br>
slide49. Glossary BWS: Bulk Water Services
M&E: Mechanical and Electrical
PS: Pump Station
RES: Reservoir
RWS: Regional Water Services
VIP: Ventilated Improved Pit
VIDP: Ventilated Improved Double Pit
WDM: Water Demand Management
WTW: Water Treatment Works
DDP: District Development Plan
IDP: Integrated Development Plan 49<br>
slide50. Thank You 50<br>