DRAFT INTEGRATED DEVELOPMENT PLAN AND BUDGET FOR

slide1. DRAFT INTEGRATED DEVELOPMENT PLAN AND BUDGET FOR 2021/22 – 2025/26
APRIL 2021

PRESENTED BY EXECUTIVE MAYOR: CLLR KEAMOTSENG STANLEY RAMAILA 1<br>
slide2. CONTENTS Legislative background
IDP/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 2021-2022
Organisational structure
Draft budget 2021-2022<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<br>
slide4. 2. IDP/BUDGET PROCESS(ROADMAP) IDP/Budget Framework and Process Plan for 2020-2021 was adopted by Council in August 2020.
Analysis Phase was done during the second quarter of 2020-2021 financial year.
Strategic Planning Session was held from 02-03 March 2021.
Strategy Phase and Project Phase were concluded in March 2020.
The Draft IDP/Budget for 2021/2022 was noted in a Council sitting dated 30 March 2021.
The Draft IDP and Budget are currently undergoing public consultations.
Final IDP and Budget for 2021 – 2022 will be adopted by Council at the end of May 2021.<br>
slide5. 3. POWERS AND FUNCTIONS Water And Sanitation
Fire-fighting Services
Municipal Health Services
Local Tourism
Municipal Planning
Municipal Abattoirs
Regional Landfill Sites
Municipal Public Transport
Municipal Airports Except for Ephraim Mogale and Elias Motsoaledi<br>
slide6. 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<br>
slide7. 5. CORE VALUES OF THE MUNICIPALITY H-onesty
E-xcellence
A-ccessibility
R-espect
T-ransparency
Abbreviated as ‘HEART’.<br>
slide8. 6. MOTTO AND SLOGAN Motto
Re a aga/Siyakha – meaning ‘we are building’.

Slogan
Destination for economic growth and development.<br>
slide9. 7. MAYORAL STRATEGIC PRIORITIES Provision of water and sanitation services in a sustainable manner 
Local economic development, growth and job creation through agrarian reform, mining, tourism and repositioning of SDA
Good governance and sound financial management 
Sustainable land use management and spatial transformation 
Community development, social cohesion and nation building 
Public participation, stakeholder engagements and partnerships<br>
slide10. 8. DEMOGRAPHICS CONT.: WARDS AND VILLAGES (Source: The Demarcation Board, 2016 and Ward Committee study 2015/16)<br>
slide11. DEMOGRAPHICS CONT.: HOUSEHOLDS(Source: Community Survey 2016 and Census 2011)<br>
slide12. DEMOGRAPHICS CONT.: HOUSEHOLDSSource: IHS Markit Regional eXplorer version 1750<br>
slide13. DEMOGRAPHICS: POPULATION FIGURES(Source: Community Survey 2016 and Census 2011)<br>
slide14. DEMOGRAPHICS: POPULATION FIGURES(Source:IHS Markit Regional eXplorer version 1750)<br>
slide15. 9. PROJECTS AND PROGRAMMES FOR 2021-2022<br>
slide16. WATER SERVICES – O & M EXPENDITURE<br>
slide17. WATER SERVICES – O & M EXPENDITURE<br>
slide18. PLANNING WATER SERVICE DEVELOPMENT<br>
slide19. RRAMS<br>
slide20. WATER SERVICES – RBIG FUND<br>
slide21. WATER SERVICES – RBIG FUND<br>
slide22. WATER SERVICES – WSIG FUND<br>
slide23. WATER SERVICES – MIG FUND<br>
slide24. WATER SERVICES – MIG FUND<br>
slide25. WATER SERVICES – MIG FUND<br>
slide26. MUNICIPAL HEALTH SERVICES<br>
slide27. EMERGENCY SERVICES<br>
slide28. DISASTER MANAGEMENT SERVICES<br>
slide29. SPATIAL RATIONALE<br>
slide30. LOCAL ECONOMIC DEVELOPMENT (LED)<br>
slide31. LOCAL ECONOMIC DEVELOPMENT (LED)<br>
slide32. SEKHUKHUNE DEVELOPMENT AGENCY(SDA)<br>
slide33. SEKHUKHUNE DEVELOPMENT AGENCY(SDA)<br>
slide34. SPECIAL PROGRAMMES AND STAKEHOLDER RELATIONS<br>
slide35. SPECIAL PROGRAMMES AND STAKEHOLDER RELATIONS<br>
slide36. BURSARIES<br>
slide37. 10. ORGANISATIONAL STRUCTURE AND INSTITUTIONAL CAPACITY The SDM comprises of five departments: Planning & Economic Development; Infrastructure & Water Services; Budget & Treasury Office; Corporate Services and Community Services. The departments are headed by Directors.
There are 817 employees on the municipal payroll (as at 31 March 2021).<br>
slide38. ORGANISATIONAL STRUCTURE AND INSTITUTIONAL CAPACITY (Continued) Strengths
Good relationship with organized labour
Existing political support
Sound management and control systems in place
Weaknesses
LED division lacks adequate capacity (vacant positions)
The municipality lacks capacity in professional engineers and professional technologists (scarce skills)
Inadequate process control capacity to deal with water and wastewater, issues of blue & green drop coordination.<br>
slide39. 11. DRAFT BUDGET 2021/2022<br>
slide40. UNDERLYING BUDGET PRINCIPLES FOR 2021/2022 To eliminate budget deficit and ensure that the budget is cash backed
Prioritise key services for provision of water and sanitation as well as funding contractual obligations
Only critical posts to be filled in order to manage and stabilise personnel costs and keep the costs 41% to total operating expenditure
Implement cost reflective tariffs in order to reduce reliance on government subsidies and grants
Take into account national imperatives such as mSCOA and budgeting for asset maintenance and refurbishment
Reduce spending on non priority spending including overtime, travelling costs, security and fleet management 40<br>
slide41. MUNICIPAL REVENUE Operating revenue decreases from R1.189b to R1.110b in the 2021/22 financial year and increases to R1.192 billion in the 2023/24 financial year.
The decrease from the adjusted budget is due to the once off special covid19 equitable shares received in 2020/21 of R105m, to assist the municipality
The tariffs are increased by 10 % in an endeavour to have a cost reflective tariff compared to the decrease of 8% in the 2020/21.
Capital revenue decreases from R505.8m to R473.1m in the 2021/22 financial year and increases to R566.4m in 2023/24 financial year.<br>
slide42. REVENUE BUDGET 2021/2022<br>
slide43. CAPITAL EXPENDITURE The total capital expenditure funded from conditional grants decreased from R505.6m to R473.1m in the 2021/22 due to increased funding allocation from WSIG conditional grant and MIG. Funding for capital grants increases to R566.4m in the 2023/24 financial year due to increase in MIG funding.
The WSIG is allocated R50m compared to R53.4m in the previous year.
The MIG is allocated R413.6m for capital projects in the 2021/22 financial year and other funds have been budgeted for MIG overheads and VIP sanitation.
RRAMS is allocated R2.4m in the 2021/22 and it increases to R2.7m in the 2023/24 financial year.<br>
slide44. CAPITAL EXPENDITURE 2021/2022<br>
slide45. OPERATING EXPENDITURE The departmental allocations on operating expenditure amounted to R1.103b in the 2021/22 and increases to R1.192b in the 2023/24 financial year.<br>
slide46. BUDGET DEFICIT The municipality has budgeted for a surplus of R215k in the 2021/22 financial year and increases to an operating surplus of R364k in 2023/24 in financial year.<br>
slide47. DEPARTMENTAL BUDGET ALLOCATIONS 2021/2022<br>
slide48. EMPLOYEES RELATED COSTS 2021/2022<br>
slide49. INTRODUCTION TO TARIFFS FOR 2021/2022 Sekhukhune District Municipality uses block or stepping tariff approach which categorizes the tariffs for services , the more customer use the more the tariff
Customers in all local municipalities are currently billed the same tariff since the alignment in 2016/17.
For Indigent households it is proposed that the first 6 kilolitres (6000 litres) be free and any consumption in excess of more than 6kl, it be paid for.
During 2020/2021 municipality decreased its tariffs by 8%, which Provincial Treasury recommended that it should have been in increase to ensure that tariffs are cost reflective.<br>
slide50. TARIFFS FOR 2021/2022 For 2021/2022 municipal services tariffs are to be increased by 10% for municipal services and other revenue sources tariffs are also to be increased by 10% , moving towards cost reflective as recommended by Treasury

New Tariff for Waste Water used by farmers is proposed at half the normal services tariffs.<br>
slide51. TARIFFS FOR 2021/2022 (continued)<br>
slide52. CONCLUSION The Draft IDP/Budget is on SDM website at http://www.sekhukhunedistrict.gov.za

Comments can be forwarded to Department of Planning and Economic Development at telephone (013) 262 7684 (Rebotile) or 013-262 7414 (Zanele), Email to: makgatir@sekhukhune.gov.za or mkhwanaziz@sekhukhune.gov.za

The closing date for all comments is 27 April 2021<br>
slide53. 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<br>
slide54. Thank you Ke A Leboga 54<br>