EPHRAIM MOGALE LOCAL MUNICIPALITY 1 Draft

slide1. EPHRAIM MOGALE LOCAL MUNICIPALITY 1 Draft 2017/2018 IDP/Budget Presentation to Stakeholders

2017/18
Date:
07 APRIL 2017

Venue : Kloppor Community Hall
Time: 10:00am
Presented by: Her Worship Mayor C.R KUPA<br>
slide2. EPMLM Draft 2017/2018 IDP/Budget 2<br>
slide3. EPMLM Draft 2017/2018 IDP/Budget 3<br>
slide4. EPMLM Draft 2017/2018 IDP/Budget EPHRAIM MOGALE LOCAL MUNICIPALITY VISION 4<br>
slide5. EPMLM Draft 2017/2018 IDP/Budget EPHRAIM MOGALE LOCAL MUNICIPALITY MISSION 5<br>
slide6. Spatial Rationale
Acquire strategic land parcels for development
Basic Service Delivery and Infrastructure
To ensure provision of efficient infrastructure ( Roads and storm-water) and energy supply that will contribute to the improvement of quality of life for all in Ephraim Mogale
To contribute to the safety of communities through the proactive identification, prevention, mitigation, and management of environment, fire and disaster risks.
Local Economic Development
To facilitate sustainable economic empowerment for all communities within Ephraim Mogale and enabling a viable and conducive economic environment through the development of related initiatives including job creation and skills development EPMLM Draft 2017/2018 IDP/Budget Municipal Priorities 6<br>
slide7. EPMLM Draft 2017/2018 IDP/Budget Municipal Priorities ------- cont------- 7 Financial Viability
To ensure the financial viability and sustainability of the municipality and to adhere to statutory requirements
Good Governance and Public Participation 
To promote proper governance and public Participation
To improve public relations thus pledging that our customers are serviced with dignity and care 
Municipal Transformation and organizational development 
Institutional transformation to provide an effective and efficient workforce by aligning institutional arrangements to the overall municipal strategy in order to deliver quality services<br>
slide8. EPMLM Draft 2017/2018 IDP/Budget Powers and functions 8<br>
slide9. EPMLM Draft 2017/2018 IDP/Budget Powers and functions 9<br>
slide10. EPMLM Draft 2017/2018 IDP/Budget Budget Notes 10 DRAFT BUDGET 2017/18
As prescribed by section 23 of the Municipal Finance Management Act and our own believe in the importance of soliciting people’s needs and views, once more we have come before you to solicit your comments, aspirations and needs in terms of the draft budget.
The Council has developed a budget policy guideline to be used as guideline when compiling the budget. The guideline states that Council departments should develop operational/business plans for their departments which clearly spell out the projects to be implemented, the objectives, the activities, the KPI’s, the budget amounts, the source of funding and the time frames for the implementation of such projects. These plans and proposed revenue were used as a basis for the drafting of the budget.
OPERATIONAL BUDGET 2017/2018 FINANCIAL YEAR
Revenue
National Treasury guides that when municipalities revise their rates, tariffs and other charges for their 2017/18 budgets and MTREF, they need to take into account the labour (i.e. the wage agreements with unions) and other input costs of services provided by the municipality or entity, the need to ensure financial sustainability, local economic conditions and the affordability of services, taking into consideration the municipality’s indigent policy.<br>
slide11. EPMLM Draft 2017/2018 IDP/Budget TARIFF INCREASE 11 The following are the proposed tariff increases after taking into consideration the guidelines from National Treasury:

Assessment Rates: 0% (New valuation roll will be implemented in 2017/2018 financial year)
 
Electricity: 1.88%
 
Cleansing: 6.4%
 
Other income: 6.4%<br>
slide12. EPMLM Draft 2017/2018 IDP/Budget Trends in major sources of own revenue 12 Revenue from own sources, which is total revenue excluding transfers represents 40% of total revenue in 2017/2018. This has reduced in comparison with the previous financial year and indicates that the municipality is still largely dependent on government grants. Total transfers from National Treasury represent a total of 60% of the municipal revenue in 2017/18.
Electricity and property rates remain the major source of own revenue for the municipality.
The only municipal service charges the municipality provide to the community is refuse removal. Water and sanitation has now been taken fully over by the District Municipality.
Total revenue of R 286 438 545 has been budgeted for in the 2017/18 financial year which is an average increase of 7% from 2016/2017 so as to enable the municipality to fund its operating and capital expenditure:<br>
slide13. EPMLM Draft 2017/2018 IDP/Budget GRANTS AND SUBSIDIES 13<br>
slide14. EPMLM Draft 2017/2018 IDP/Budget OPERATING REVENUE BUDGET 14 Other revenue consists of all other revenue sources of the municipality that are not main sources such as hiring of facilities and sale of tender documents<br>
slide15. EPMLM Draft 2017/2018 IDP/Budget OPERATING EXPENDITURE BUDGET 15<br>
slide16. EPMLM Draft 2017/2018 IDP/Budget Employee related costs & General Expenditure 16 Employee related costs
An increase of 7.4% has been provided in the 2017/18 financial year as guided by National Treasury and Salga. The municipality has followed a stringent review process on the organizational structure of the institution and believes that the reviewed structure will enhance service delivery and efficiency of operations. The draft budget indicates that the employee cost is 26% of the operating budget which is still within the National guidelines.
General Expenditure
The current CPIX increase outlined within circular 86 to be utilized by municipalities in the estimation of their expenditure for 2017/18 is approximately 6.4%. Operating expenditure is budgeted as follows: Mainly the budget principle used was zero based budgeting where inputs were received from Departments and a trend analysis for the previous year’s outcomes and mid-year performance for the current were considered. Where incremental budgeting was made it has been kept within 6.4%.
Overall increase of the total operating expenditure is 8% as compared to 2015/16. This is mainly due to the effect of zero based budgeting. However the municipality will implement cost containment measures wherever possible implemented guided by MFMA Circular 58, 66, 67, 70, 74 ,75 and 82.<br>
slide17. EPMLM Draft 2017/2018 IDP/Budget CAPITAL BUDGET 17 Total capital 2017/2018: R61 285 000.00
Excluded in the MIG funding is the cost for PMU Establishment amounting to R 1 700 000.00, which has been disclosed with Operational General Expenditure. Hence the total grant funding in relation to MIG is R 43 110 000.00<br>
slide18. EPMLM Draft 2017/2018 IDP/Budget Capital Budget----CONT---- 18<br>
slide19. EPMLM Draft 2017/2018 IDP/Budget Capital Budget----CONT---- 19<br>
slide20. EPMLM Draft 2017/2018 IDP/Budget Capital Budget----CONT---- 20<br>
slide21. EPMLM Draft 2017/2018 IDP/Budget Budget related Policies 21 Budget Policy
Tariffs and Sundry Charge Policy
Property Rates Policy
Virement Policy
Credit Control and Debt Collection Policy
Assets Management Policy
Indigent Support Policy
Investment Policy
Cellphone Policy
Overtime and Standby Policy
Acting Allowance Policy
Transport Allowance Policy
Travel and Subsistence Policy
Supply Chain Management Policy
Funding and Reserve Policy<br>
slide22. EPMLM Draft 2017/2018 IDP/Budget Conclusion 22 IDP is a building block towards Integrated Intergovernmental Planning
It is important that all stakeholders plays a role in developing this tool in order to improve service delivery in our Municipality.
Communities and other stakeholders are invited to submit inputs before the final adoption of 2017 /2018 IDP/Budget on or before 08 May 2017.<br>