LEKWA LOCAL MUNICIPALITY IDP FOR 2015/ · PDF fileLEKWA LOCAL MUNICIPALITY IDP FOR 2015/2016 ... into account all the merits and demerits of pursuing the set objectives. ... • Integrate

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LEKWA LOCAL MUNICIPALITY IDP FOR 2015/2016

5TH IDP EDITION

HP

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A. EXECUTIVE SUMMARY BY EXECUTIVE MAYOR

Local government is and will remain the implementing agent of government’s transformation and delivery programs. Two parallel and mutually reinforcing roles of local government are sustainable upliftment and empowerment of local communities and the sustainable creation of an environment for economic development and opportunity. The primary vehicle for carrying out these roles is service delivery. Local government should therefore create the capacity to be able to deliver the required services.

However, in any revolutionary programme that seeks to redress many challenges that were created by the past skewed system, we will continuously encounter stumbling blocks that may impede progress for the complete service delivery programme for the people.

Communication between the leadership and its electorate should be regularised and enhanced in an endeavour to correct perceptions and close any vacuum that could be created as a result of muteness.

It should become a habit and hobby to constantly communicate with the people and highlight all challenges that we may have encountered in the execution of our mandate, and further explain on our achievements as government at whatever sphere of government. No vacuum should be allowed in the course of duty, be it the political representatives or administration. We should never be shy to explain.

By us being here, we confirm our resolved to service delivery and furthermore, subscribe to the notion that “Success is realised when preparation and opportunity meet”.

We must always be guided by our vision – “to be the leading, people cantered municipality, excelling in economic growth, development and governance”

We are here to prepare and plan and we hope that opportunities will present themselves so that we can see a municipality that is performing and ultimately successful in all its required functional areas. We need to push good values of the organisation to our employees. We need to introduce change that is founded on good principles and culture. We have to excel in what we do.

Unity in action must drive us to be a winning team. Let us all subscribe to all call that is derived from an old adage: ‘united we stand, divided we fall’ and we commit that this is what will drive this strategy.

In order to achieve concomitant results, we should collectively contribute towards our strategic development path. It is in this spirit that we are steadfast and in support of our President’s 2009 ‘State of the Nation’ address and broadly the government call that “working together we can do more”.

Developmental Local Government is Local Government committed to working with citizens and groups within the community.

The White Paper – which is often referred to as the ‘mini- constitution’ for the local sphere of government – defines Developmental Local Government as local government committed to working with citizens and groups within the community to find long-term or sustainable ways to meet the social, economic and material needs and improve the quality of the lives of the community.

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To realize this vision, municipalities are encouraged to build local democracy by developing strategies and mechanisms to continuously engage with citizens, business and community groups. The White Paper requires active participation of citizens at four levels, as:

• Voters • Participants in the policy process • Consumers and service-users • Partners in resource mobilization.

The White Paper further states that municipalities must represent the interests of the people in the community and work with all sections of the community to build a shared vision and to set goals for development. This strategic document must provide an expression to these requirements.

We all know that there are a lot of challenges within our Municipality.

We can sum the up them as follows:-

• Audit opinion (Unqualified Audit Opinion with emphasis of matter INSTEAD of CLEAN AUDIT;

• Provision of services (water, electricity and of late waste removal); • Limited / Non-compliance to legislation; • Lack of policies (IT Policies); • Poor information management; • Capacity gaps (BTO); • Poor revenue collection; • Predetermined Objectives • Ever increasing irregular expenditure, unauthorised and wasteful expenditure • Lack of risk management unit • Non-compliance with SCM Policy and Regulations

Challenges identified above should be confronted with velocity of a bull. Failure to do so would create pitfalls that would be insurmountable where in some instances public representatives would be treated like lepers within the community they ought to serve.

Whilst we are confronted by some of the few mentioned challenges, we have been able to consider the following:-

• Mid-year budget and performance report – Section 72 of the MFMA; • Annual report; • Adjustment budget;

The above documents are set that provides us with the opportunity to account to our communities. The choices and decisions we make are put into test and the public is now aware of our actions. By the end of March 2015, we will be aware of what the public thinks before we adopt the annual report.

Consequently, the IDP/Budget process plan we adopted in August presents more of what is required of us. As we gear ourselves to these processes, we need this strategy to create better platform for us to be able to shape the future of Lekwa.

“Strategy provides direction.

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• It is your framework of decision-making and action, the foundation and long-term plan for the people in the business;

• It is a rally point, pro-active and activating; • It initiates change and improvement while providing fundamental principles; • It enables the business to organise its resources and optimise human capital. • It leads to powerful business performance. • It creates confidence, since the organisations knows where it wants to go and what it

wants to achieve, and has a solid plan and support systems in place to do so.”

As jobs are lost, municipal revenue from rates and taxes shrink, local economies decline, indigent registers expand—increasing demand for free basic services. Against this backdrop, LLM must remain financially viable, and if the national economy is to be sustained on a positive growth path, local economies will have to be assisted to continue to grow, even if at very low rates.

As we a gathered here, achieving positive results is preceded by developing a sound plan which takes into account all the merits and demerits of pursuing the set objectives. The outcome of this strategic plan must highlight new imperatives and challenges that confront our communities.

No doubt, the role of community participation into the affairs of the municipality has a positive impact on good governance. We are geared up to take the challenges before us through deliberate means of redressing the imbalances of the past and turn the vicious poverty circle which confronts our communities. Our resolve on creating enabling regulatory framework has gained impetus and we are certain that before our term of office, we shall ensure that all our policies and by-laws strengthen our capacity to manage this municipality.

Strategy about understands the linkages between issues and identifying the key drivers and points of leverage. As Councillors, we are defined as Architects since we have to set and develop the vision for our municipality. Managers, as Builders, have to ensure that the vision set is realised.

In that respect, when our term ends, we must not be shy and we must ensure that the strategic CHOICES we make would yield these results:-

• We must proudly report that we worked hard to push back the frontiers of poverty; • To rebuild a tattered economy; • To return pride to our people; • To build confidence; • To care for the poor and most vulnerable; • We must sought to build rather than postulate; • We must choose decision over vacillation; • We choose inclusion over exclusion; • We choose stability over chaos; • We choose predictability over irrationality; • We embrace the present, mindful of the past, and boldly face our future; • We nurture our youth while caring for our elders; • We respect the community and the individual; • We cherish our diversity and our common humanity; • We choose respect over disregard; • We choose humility over arrogance; • We choose partnership over isolation; • We choose learning over assuming; • We choose frankness over glibness.

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I hope MM and his team will deliberate on the following topics:

• “BACK TO BASICS” and do simple things right. • Integrate NDP, SONA, and SOPA etc. • 6 KPAs of Local Government • Municipal Governance, Communication, and Public Participation • Fighting fraud and corruption

Finally, our mandate that we derive from the constitution of the Republic and other laws that govern local government have made us to realise that we exist for one reason and that is, to serve our communities and change their lives for the better. We are therefore servant leaders and may our stewardship and sustainability embrace the noble objectives of developmental local government.

This outcome of this strategic document will guide us in our quest for a better life for all. With this tool, we will remain focused on ensuring that we deliver on our mandate. Key to this strategy would be development of the program of action which will guide implementation by various programs and ensures that their programs are synergised with the municipal broad strategies. Adequate attention must also be put on ensuring that a sufficiently resourced structure has to be developed for the implementation of the plan. In this regard, the major tasks for the departments will be to grow particularly in areas of specialization and management.

I sincerely believe that the implementation of our well diagnosed and synthesised strategic plan will make our municipality to grow from strength to strength. It must be embedded on these deliberate efforts that our municipality must embrace this strategy. The results must be realized in the current term of office in order to create a better platform for the others who will come after us.

CLLR CM MORAJANE EXECUTIVE MAYOR

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B. MUNICIPAL OVERVIEW BY MUNICIPAL MANAGER

As an Accounting Officer, there is a need to share with the Municipal leadership, Individuals, Unions, CBO’s, NPO’s, Business, Farmers Associations, Stockvels, Churches, SMME’s, Co-operatives and the greater communities of Lekwa Local Municipality, a perspective as an overview of the Municipality environment. This overview is an attempt to determine and guide discussions, based on the same wavelengths. To also give insight into the Accounting Officers views on the current, the past and the forecast forward. Broadly raise challenges that need attention and should be addressed in this IDP document going forward.

Our municipality strives, within its financial and administrative capacity, to give effect to the objects of local government as defined in Section 152(1) of the Constitution of South Africa.

Lekwa LM has unique challenges which include the prevalence of poverty, a natural environment with unique resource base; ensuring equitable access to basic services for all our inhabitants, jobs and sustainable livelihoods; creating integrated human settlements with decent housing for all, Low levels of indigent registration, Billing system not completely revamped, Collection rate fluctuation, Increasing debts, Call centre inconsistencies ,Aged fleet, Load shedding / Eskom, Properties Encroachments, Grazing land availability and dealing with the rise in crime statistics.

However, Lekwa is blessed in having a community characterised by its resilience under difficult circumstances. Moreover our municipality also boast with achievements as follows;

Council and its committees continue to sit, and supported as expected.

Political leadership stability.

Standing Rules and orders adopted.

Improved audit outcomes.

Water / sanitation and electricity prioritised for 2014 / 2015

Electricity and revenue loss control being attended to

Water treatment works refurbished

Waste water treatment works refurbished, and extension started

Water conservation and demand management underway

Recruitment of staff is in progress.

Continuous training of Councillors and staff to improve skills.

Code of conduct implemented.

Skills transfer taking place at finance

More than R40 million special provincial grants received

Newsletter re-introduced

Some progress made in building relations with big business

Cooperatives assisted

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The solution to the Lekwa’s problems will be addressed through a robust economy creating employment opportunities and transforming the economy to create equal opportunities for all. We need to create a sense of belonging and a home for all through this plan. It will require all residents to work together as collective and take ownership of our neighborhoods.

This plan strongly addresses the fundamental challenges regarding our human and social development and the ability to support a robust economy. Given our focus on people-cantered development and the reality of having to do so with limited resources, our municipal vision is to be the leading people centered municipality excelling in economic growth, development and good governance.

This IDP looks forward to 2015/16 financial year, but acknowledges the problems and the challenges of our joint past, present, immediate future, and the years and months and weeks and days until the next elected term of council. Lekwa is the place we all call home. We all of us live here, work here, learn here, play here and must prosper here.

From time to time we will not see things the same, we will fight and reconcile, laugh and cry, walk and run. All the contradictions must make us stronger and determined to succeed. We therefore call upon our government, and this council, and its directors and managers and support staff, to focus on delivering the services that support an environment within which the people of Lekwa can all live, and work, and prosper together.

…………………………………………………………………………………………………………………………………………….

MR. LB TSHABALALA MUNICIPAL MANAGER

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TABLE OF CONTENT

A. EXECUTIVE SUMMARY BY THE EXECUTIVE MAYOR

B. MUNICIPAL OVERVIEW BY MUNICIPAL MANAGER

C. ACRONYMS

1. CHAPTER 1. INTRODUCTION AND BACKGROUND

1.1.PHYSICAL STRUCTURE OF THE IDP DOCUMENT ...................................................................................................................................... 15

1.2.LOCALIZED MANIFESTO VERSUS ACHIEVEMENTS OVER THE LAST FOUR YEARS ................................................................. 17

1.3.LEGISLATIVE CONTEXT .......................................................................................................................................................................................... 21

1.4.LEGISLATIVE IMPERATIVES AFFECTING PLANNING .............................................................................................................................. 23

1.4.1.OUTCOME-BASED APPROACH TO DELIVERY .......................................................................................................................................... 23

1.4.2.MULTIDIMENSIONAL STRATEGIC FRAMEWORK .................................................................................................................................. 24

1.5.INTERGOVERNMENTAL PLANNING ................................................................................................................................................................. 31

1.6.IDP PUBLIC PARTICIPATION PROCESS ........................................................................................................................................................... 31

1.7.IDP REVIEW PROCESS .............................................................................................................................................................................................. 32

1.8.IDP PROCESS PLAN FOR 2015/2016 ................................................................................................................................................................ 36

2. CHAPTER 2: DEVELOPMENT STRATEGIES

2.1.INTRODUCTION........................................................................................................................................................................................................... 37

2.2.LEKWA LOCAL MUNICIPALITY’S “VISION” .................................................................................................................................................... 37

2.3.LEKWA LOCAL MUNICIPALITY’S “MISSION .................................................................................................................................................. 37

2.4.STRATEGIC FOCUS AREA ........................................................................................................................................................................................ 38

2.5.NINE (9) STRATEGIC FOCUS AREAS ................................................................................................................................................................. 38

2.5.1.STRATEGIC FOCUS AREA 1: EQUITABLE PROVISION OF SERVICES SUCH AS WATER, SANITATION, ETC. ............ 39

2.5.2.STRATEGIC FOCUS AREA 2: CREATION OF AN INTEGRATED AND SUSTAINABLE HUMAN SETTLEMENT ............. 39

2.5.3.STRATEGIC FOCUS AREA 3: CREATION OF A LINKED ECOLOGICAL OPEN SPACE ............................................................... 39

2.5.4.STRATEGIC FOCUS AREA 4: DELINEATION OF AN URBAN EDGE ................................................................................................ 39

2.5.5.STRATEGIC FOCUS AREA 5: ESTABLISHMENT OF AN EFFICIENT ACCESS AND INTEGRATED MOBILITY .............. 39

2.5.6.STRATEGIC FOCUS AREA 6: CREATION OF A FUNCTIONAL HIERACHY .................................................................................... 39

2.5.7.STRATEGIC FOCUS AREA 7: FINANCIAL AND ENVIRONMENTAL SUSTAINABILITY ........................................................... 40

2.5.8.STRATEGIC FOCUS AREA 8: EFFECTIVE LEADERSHIP AND GOOD GOVERNANCE ............................................................... 40

2.5.9.STRATEGIC FOCUS AREA 9: BOOSTING THE LOCAL ECONOMY AND JOB CREATION ......................................................... 40

3. CHAPTER 3: SITUATIONAL ANALYSIS

3.1.MUNICIPAL DEMOGRAPHICAL OVERVIEW .................................................................................................................................................. 43

3.2.SOCIO-ECONOMIC ANALYSIS ............................................................................................................................................................................... 44

3.2.1.DEMOGRAPHIC INDICATORS ........................................................................................................................................................................... 44

3.2.2.YOUTH INDICATORS ............................................................................................................................................................................................. 45

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3.2.3.LABOUR INDICATORS .......................................................................................................................................................................................... 45

3.2.4.LABOUR INDICATORS .......................................................................................................................................................................................... 47

3.2.5.EDUCATION INDICATORS .................................................................................................................................................................................. 48

3.2.6.YOUTH INDICATORS ............................................................................................................................................................................................. 49


3.2.8.HEALTH INDICATORS .......................................................................................................................................................................................... 51


3.2.10.HOUSING 2011 ...................................................................................................................................................................................................... 53

3.2.11.SANITATION 2011 ............................................................................................................................................................................................... 54

3.2.12.PIPED WATER-2011 ........................................................................................................................................................................................... 55

3.2.13.BLUE DROP PERFORMANCE .......................................................................................................................................................................... 56

3.2.14.GREEN DROP PERFORMANCE (RISK PROFILE AND LOG BY MUNICIPAL AREA) ............................................................... 56

3.2.14.BASIC SERVICE DELIVERY Household Services Index by Local municipal area, 2001 - 2011 ....................................... 57

3.2.15.HUMAN DEVELOPMENT INDEX ................................................................................................................................................................... 58

3.2.16.AVERAGE HOUSEHOLD INCOME.................................................................................................................................................................. 58

3.2.17.HOUSEHOLD GOODS - 2011 ............................................................................................................................................................................ 59

3.2.18.HOUSEHOLD GOODS INDEX Household Goods Index by Local municipal area, 2001 - 2011 ...................................... 60

3.2.19.INEQUALITY AND POVERTY .......................................................................................................................................................................... 61

3.2.20.INCOME INEQUALITY ........................................................................................................................................................................................ 62

3.2.21.ECONOMIC INDICATORS .................................................................................................................................................................................. 63

3.2.22.NDUSTRY CONTRIBUTION & GROWTH .................................................................................................................................................... 66

3.2.23.TOURISM INDICATORS ..................................................................................................................................................................................... 67

3.2.24.NATIONAL TREASURY ALLOCATION, MPG EXPENDITURE & SASSA GRANTS ..................................................................... 68

3.2.25.CRITICAL QUESTIONS – RESPONSE FROM MUNICIPALITY ........................................................................................................... 69

3.2.26.CHALLENGES & RECOMMENDATIONS ..................................................................................................................................................... 72

3.2.WARD BASED ASSESSMENT IN TERMS COMMUNITY ISSUES ............................................................................................................. 73

4. CHAPTER 4: PERFORMANCE MANAGEMENT SYSTEM

4.1.INTRODUCTION........................................................................................................................................................................................................... 97

4.2.POLICY AND LEGISLATIVE FRAMEWORK ..................................................................................................................................................... 97

4.2.1.WHITE PAPER ON LOCAL GOVERNMENT (1988) .................................................................................................................................. 97

4.2.2.BATHO PELE (1998).............................................................................................................................................................................................. 98

4.2.3.THE MUNICIPAL SYSTEMS ACT (2000) ....................................................................................................................................................... 98

4.2.4.MUNICIPAL PLANNING AND PERFORMANCE MANAGEMENT REGULATIONS (2001)....................................................... 98

4.3.PRINCIPLES GOVERNING THE PERFORMANCE MANAGEMENT SYSTEM ..................................................................................... 98

4.4.LEKWA’S PERFORMANCE MANAGEMENT SYSTEM ................................................................................................................................. 99

4.5.STAKEHOLDERS AND THE ROLE THEY PLAY IN PERFORMANCE MANAGEMENT SYSTEM ............................................ 101

4.6.PUBLIC PARTICIPATION ...................................................................................................................................................................................... 101

4.7.AUDITING OF PERFORMANCE .......................................................................................................................................................................... 101

4.8.KEY PERFORMANCE INDICATORS (KPI’S) ................................................................................................................................................. 103

4.9.THE GENERAL KEY PERFORMANCE INDICATORS ................................................................................................................................. 104

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4.10.KEY PERFORMANCE AREAS (KPA’S) .......................................................................................................................................................... 105

4.11.KEY PERFORMANCE AREAS (KPAs), STRATEGIC OBJECTIVES (SOs), KEY PERFORMANCE INDICATORS (KPIS) AND STRATEGIC FOCUS AREAS (SFAS) AIMED AT ADDRESSING PRIORITY ISSUES ................................................................... 108

5. CHAPTER 5: SPATIALE RATIONALE

5.1.LOCATION ANALYSIS............................................................................................................................................................................................. 150

5.2.SPATIAL PARTTEN AND DISTRIBUTION ..................................................................................................................................................... 150

5.3.INFORMAL SETTLEMENTS ................................................................................................................................................................................. 153

5.3.1.FUNCTIONAL AREA 1 ........................................................................................................................................................................................ 153

5.3.2.FUNCTIONAL AREA 2 ........................................................................................................................................................................................ 153

5.3.3.FUNCTIONAL AREA 3 ........................................................................................................................................................................................ 153

5.3.4.FUNCTIONAL AREA 4 ........................................................................................................................................................................................ 153

5.3.5.FUNCTIONAL AREA 5 ........................................................................................................................................................................................ 153

5.3.6.FUNCTIONAL AREA 6 ........................................................................................................................................................................................ 154

5.3.7.FUNCTIONAL AREA 7 ........................................................................................................................................................................................ 154

5.3.8.FUNCTIONAL AREA 8 ........................................................................................................................................................................................ 154

5.4.HIERACHY OF NODES ............................................................................................................................................................................................ 154

5.4.1.FIRST ORDER ......................................................................................................................................................................................................... 154

5.4.2.THIRD ORDER NODES ....................................................................................................................................................................................... 154

5.4.3.FOURTH ORDER NODES ................................................................................................................................................................................... 155

5.5.LINKS ............................................................................................................................................................................................................................. 156

5.5.1.ROAD NETWORKS ............................................................................................................................................................................................... 156

5.5.2.RAILNETWORK ..................................................................................................................................................................................................... 158

5.5.3.PUBLIC TRANSPORT .......................................................................................................................................................................................... 159

5.5.4.NON-MOTORIZED TRANSPORT ................................................................................................................................................................... 160

5.5.5.POLICY MATTERS ........................................................................................................................................ 160

6. CHAPTER 6: FINANCIAL VIABILITY AND MANAGEMENT

6.1.INTRODUCTION........................................................................................................................................................................................................ 161

6.2.EXECUTIVE SUMMARY ......................................................................................................................................................................................... 161

6.3.2015/16 MEDIUM-TERM REVENUE & EXPENDITURE FRAMEWORK ......................................................................................... 163

6.4.OPERATING REVENUE FRAMEWORK ........................................................................................................................................................... 164

MBRR Table A1 - Budget Summary .................................................................................................................... 182

MBRR Table A2 - Budgeted Financial Performance (revenue and expenditure by standard classification) ... 184

MBRR Table A4 - Budgeted Financial Performance (revenue and expenditure) ............................................. 186

MBRR Table A5 - Budgeted Capital Expenditure by vote, standard classification and funding source .......... 189

MBRR Table A6 - Budgeted Financial Position .................................................................................................. 191

MBRR Table A7 - Budgeted Cash Flow Statement ............................................................................................ 193

MBRR Table A8 - Cash Backed Reserves/Accumulated Surplus Reconciliation ............................................... 194

MBRR Table A9 - Asset Management ................................................................................................................ 195

MBRR Table A10 - Basic Service Delivery Measurement .................................................................................. 196

6.5.OVERVIEW OF BUDGET-RELATED POLICIES ............................................................................................................................................ 197

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6.6.OVERVIEW OF BUDGET FUNDING .................................................................................................................................................................. 199

7. CHAPTER 7: GOOD GOVERNANCE AND PUBLIC

PARTICIPATION

7.1.GENDER ........................................................................................................................................................................................................................ 202

7.2.OLDER PERSONS ...................................................................................................................................................................................................... 202

7.3.PERSONS WITH DISABILITIES .......................................................................................................................................................................... 202

7.4.YOUTH DEVELOPMENT ....................................................................................................................................................................................... 202

7.5.SUSTAINABLE LIVELIHOODS ............................................................................................................................................................................ 202

7.6.EARLY CHILDHOOD DEVELOPMENT ECD .................................................................................................................................................. 203

7.7.CHILD CARE AND PROTECTION....................................................................................................................................................................... 203

7.8.MORAL REGENERATION...................................................................................................................................................................................... 203

7.9.OVERSIGHT COMMITTEES .................................................................................................................................................................................. 205

7.10.MUNICIPAL PUBLIC ACCOUNTS COMMITTEES ..................................................................................................................................... 206

7.11.WARD COMMITTEES........................................................................................................................................................................................... 207

7.12.AUDIT COMMITTEES .......................................................................................................................................................................................... 208

7.13.INTERGOVERNMENTAL RELATIONS ......................................................................................................................................................... 208

7.14.COMMUNITY PARTICIPATION ....................................................................................................................................................................... 208

7.15.RISK MANAGEMENT COMMITTEE ............................................................................................................................................................... 209

7.15.1.RISK MANAGEMENT PLAN .......................................................................................................................................................................... 211

8. CHAPTER 8: DISASTER MANAGEMENT AND INTERGRATED

HUMAN SETTLEMENT CHAPTER

8.1.DISASTER MANAGEMENT PLAN ..................................................................................................................................................................... 217

8.1.1.PURPOSE OF DISASTER MANAGEMENT PLAN ..................................................................................................................................... 217

8.1.2.POSSIBLE TYPES OF DISASTERS, COMMUNITIES AT RISK AND ITS EFFECTS ..................................................................... 218

8.1.3.POSSIBLE PREVENTION AND MITIGATION MEASURES .................................................................................................................. 219

8.1.3.PREPAREDNESS AND INSTITUTIONAL CAPACITY ............................................................................................................................. 220

8.2.INTEGRATED HUMAN SETTLEMENT CHAPTER ..................................................................................................................................... 224

8.2.1PURPOSE OF HOUSING CHAPTER ................................................................................................................................................................ 225

8.2.2.EXPECTED OUTPUTS ......................................................................................................................................................................................... 225

9. CHAPTER 9: MUNICIPAL TRANSFORMATION AND

ORGANIZATIONAL DEVELOPMENT

9.1.MUNICIPAL COUNCIL ............................................................................................................................................................................................ 227

9.2.STRUCTURE OF TROIKA AND MAYORAL COMMITTEE ....................................................................................................................... 228

9.3.ORGANIZATIONAL DESIGN ................................................................................................................................................................................ 230

9.4.HUMAN RESOURCE DEVELOPMENT STRATEGY ..................................................................................................................................... 237

9.4.1.OVERVIEW .............................................................................................................................................................................................................. 237

9.4.2.ORGANIZATIONAL REVIEW ........................................................................................................................................................................... 238

9.4.3.EMPLOYMENT PRACTICE POLICY .............................................................................................................................................................. 239

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9.4.4.TRAINING AND DEVELOPMENT POLICY ................................................................................................................................................. 239

9.4.5.STAFF RETENTION POLICY ............................................................................................................................................................................ 239

9.4.6.PERFORMANCE MANAGEMENT POLICY ................................................................................................................................................. 239

9.4.6.HEALTH AND SAFETY POLICY ...................................................................................................................................................................... 240

9.4.7.EMPLOYMENT EQUITY POLICY .................................................................................................................................................................... 240

9.4.7.HUMAN RESOURCE PLAN ............................................................................................................................................................................... 240

10. CHAPTER 10: MUNICIPAL PROGRAMMES AND PROJECTS

10.1.WATER AND SANITATIONS PROGRAMME .............................................................................................................................................. 245

10.3.SASOL SLP/LOCAL ECONOMIC DEVELOPMENT PROGRAMME..................................................................................................... 247

10.4.ELECTRICITY PROGRAMME ............................................................................................................................................................................ 248

10.5.EDUCATION PROGRAMME............................................................................................................................................................................... 248

10.6.ENVIRONMENTAL PROGRAMME ................................................................................................................................................................. 250

10.7.SECTOR PLANS PROGRAMME ........................................................................................................................................................................ 251

10.7.TRAFFIC & SAFETY PROGRAMME................................................................................................................................................................ 252

10.8.ANGLOAMERICAN PROGRAMMES ............................................................................................................................................................... 255

11. CHAPTER 11: MUNICIPAL SECTOR PLANS

11.1.LAND-USE MANAGEMENT SYSTEM ............................................................................................................................................................ 256

11.2.WATER SERVICE DEVELOPMENT PLAN ................................................................................................................................................... 256

11.3.INTEGRATED HUMAN SETTLEMENT CHAPTER PLAN .................................................................................................................... 256

11.4.LOCAL ECONOMIC DEVELOPMENT AND TOURISM STRATEGY .................................................................................................. 257

11.5.INFRASTRUCTURE INVESTMENT PLAN .................................................................................................................................................. 257

11.6.PERFORMANCE MANAGEMENT PLAN ...................................................................................................................................................... 258

11.7.SOCIAL NEEDS ASSESSMENT PLAN ........................................................................................................................................................... 258

11.8.OPEN SPACE PLAN .............................................................................................................................................................................................. 258

11.9.URBAN EDGE POLICY ........................................................................................................................................................................................ 259

11.10.ENCROACHMENT ON PROPERTY POLICY ............................................................................................................................................ 259

11.11.INVESTMENT AND INCENTIVES STRATEGY ........................................................................................................................................ 260

11.12.DISASTER MANAGEMENT PLAN ................................................................................................................................................................ 260

11.13.INTEGRATED ENVIRONMENTAL MANAGEMENT PLAN ............................................................................................................... 261

11.14.PAVEMENT MANAGEMENT SYSTEM ...................................................................................................................................................... 262

11.15.STORM-WATER MANAGEMENT SYSTEM .............................................................................................................................................. 263

11.16.COMPREHENSIVE INFRASTRUCTURE INVESTMENT PLAN......................................................................................................... 264

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C. ACRONYMS

ABBREVIATION DESCRIPTION

ABET Adult Based Education and Training AIDS Acquired Immune Deficiency Syndrome

CBO’s Community Based Organizations CETA Construction Education and Training Authority CHBC Community Home Base Care CMIP Consolidated Municipal Infrastructure Programme

COGTA Department of Cooperative Governance and Traditional Affairs CPTR Current Public Transport Record DACE Department of Agriculture, Conservation and Environment DBSA Development Bank of South Africa DEAT Department of Environmental Affairs and Tourism DAC District AIDS Council

DALA Department of Agriculture and Land Administration DLA Department of Land Affairs

DLGH Department of Local Government and Housing DPLG Department of Provincial and Local Government DTI Department of Trade and Industry DM District Municipality

DMA District management Area DME Department of Minerals and Energy DPW Department of Public Works

DWAF Department of Water Affairs and Forestry ECA Environmental Conservation Act EIA Environmental Impact Assessment EIP Environmental Implementation Plan EHS Environmental Health Services EMP Environmental Management Plan EMS Environmental Management System

EPWP Expanded Public Works Programme FBS Free basic Services FBE Free Basic Electricity FPA Fire Protection Association GIS Geographic Information System

GSDM Gert Sibande District Municipality HDI Human Development Index HOD Head of Department IDP Integrated Development Planning IGR Inter-Governmental Relations IEM Integrated Environmental Management

IMEP Integrated Municipal Environmental Programme IWMP Integrated Waste Management Plan

IS Information System IT Information Technology

ITP Integrated Transport Plan KPA Key Performance Area KPI Key Performance Indicator LDO Land Development Objective LED Local Economic Development LLM Lekwa Local Municipality

LRAD Land Redistribution for Agricultural Development LUMS Land Use Management System MAM Multi Agency Mechanism MEC Member of Executive Committee

MFMA Municipal Finance Management Act MHS Municipal Health Services

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MIG Municipal Infrastructure Grant MPCC Multi-Purpose Community Centers MSIG Municipal Systems Improvement Grant MSP Master Systems Plan

NEMA National Environmental Management Act NEPAD New Partnership for Africa‘s Development

NER National Electricity Regulator NGO Non-Governmental Organization NSDP National Spatial Development Perspective

NWMS National Waste Management Strategy PGDS Provincial Growth and Development Strategy PHC Primary Health Care PMS Performance Management System REDS Regional Electricity Distribution System SABS South Africa Bureau of Standards

SACOB South Africa Chamber of Business SALGA South Africa Local Government Association SANAC South African National AIDS Council SANCO South Africa National Civic Organization SAPS South African Police Service SETA Sector Education Training Authority SDF Spatial Development Framework SLA Service Level Agreement

SOER State of the Environment Report WSA Water Services Authorities

IWSDP Integrated Water Services Development Plan

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1. CHAPTER 1: INTRODUCTION AND BACKGROUND

Since the first democratic elections in South Africa in 1994, the nature and functions of municipalities

changed drastically, with more emphasis being placed on the developmental role of local authorities.

Developmental local government means a commitment to working with citizens to find sustainable

ways to meet their social, economic and material needs to improve the quality of their lives. A duty is

also placed on local authorities to ensure that development policies and legislation are implemented.

Preference must therefore be given to this duty when managing the administrative and budgetary

processes of the municipality.

The Constitution of the Republic of South Africa (1996) commits government to take reasonable

measures, within its available resources, to ensure that all South Africans have access to adequate

housing, health care, education, food, water and social security. The current goal of municipalities is

to establish a planning process which is aimed at the redress of the imbalances created by the

apartheid era. Developmental local government can only be realised through integrated

development planning and specifically the compilation of an Integrated Development Plan (IDP).

1.1. PHYSICAL STRUCTURE OF THE IDP DOCUMENT The IDP document is structured to allow a logical flow from understanding our reality through to the

key programmes we deliver. See diagram below:

Fig 1: Physical structure of the IDP document

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CHAPTER 1 BACKGROUND

CHAPTER 2: DEVELOPMENT STRATEGIES

CHAPTER 3: SITUATIONAL ANALYSIS

CHAPTER 4: PERFOMANCE MANAGEMENT SYSTEM

CHAPTER 5: SPATIAL RATIONALE

CHAPTER 6: FINANCIAL VIABILITY AND MANAGEMENT

CHAPTER 7: GOOD GOVERNANCE AND PUBLIC PARTICIPATION

CHAPTER 8: INTERGRATED HUMAN SETTLEMENT & DISASTER MANAGEMENT

CHAPTER 9: MUNICIPAL TRANSFORMATION & INSTITUTIONAL DEVELOPMENT

CHAPTER 10: MUNICIPAL PROGRAMMES AND PROJECTS

CHAPTER 11: MUNICIPAL SECTOR PLANS

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1.2. LOCALIZED MANIFESTO VERSUS ACHIEVEMENTS OVER THE LAST FOUR YEARS

Challenges confronting the municipality include a declining revenue base and poor management of resources, inefficiencies that limit the manner in which the municipality interface with the communities, aging infrastructure due to truck haulage and deferred maintenance, structural inefficiencies that result in poor service delivery standards, low economic growth and high unemployment rate, vulnerable environmental assets and natural resources.

To address the identified challenges and work towards realization of the vision, the municipality has identified the following long- term strategic objective which is known as 5 LLM’s;

LLM: 1 Build local economies to create more employment, decent work & sustainable livelihoods

LLM: 2 Improve service and broaden access to them

LLM: 3 Promote more active community participation in local government

LLM: 4 Ensure more effective, accountable and clean local government that works with National and Provincial government.

LLM: 5 build more united, non-racial, integrated and safer communities

LEKWA LOCALISED MANIFESTO V/S ACHIEVEMENT OVER THE LAST 4 YEARS

LLM: 1.BUILDING LOCAL ECONOMIES TO CREATE MORE EMPLOYMENT, DECENT WORK AND SUSTAINABLE LIVELIHOODS

We will review and implement LED and Tourism strategy

Local Economic Development and Tourism strategy is under review with support from COGTA

A103(2014-02-31) LED & Tourism strategy review action plan

We will partner with business and social partners for decent and sustainable jobs through LED Forum and other Corporate social investment programmes

LLM has formed partnerships and other social partners and corporate social investment through LED Forum e.g. Future Forum (Anglo), Noble Group Steering Committee etc.

Re-launch of the LED Forum A115 (2014-07-31).

We will complete the Ubuhle Siyazenzela Chicken broiler project in Morgenzon

Ubuhle Siyazenzela Chicken broiler project in Morgenzon is complete and functional.

We will finalise the draft investment incentive policy

The draft investment incentive policy is still in draft form and need to table to council

C113 (2012-08-31 Revised Incentive Policy and A13 (2012-01-27)

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LLM: 2. IMPROVE SERVICE AND BROADE ACCESS TO THEM

Speed up provision of access roads, water infrastructure, sanitation, electricity especially in rural areas

Water service Development plan is outdated need to be reviewed.

Comprehensive Infrastructure Plan developed.

Pavement Management System is outdated and needs to be reviewed.

Storm-Water master plan outdated need to be reviewed.

A132 Reprioritisation of Water and Sanitation Projects.

A121-129 Provision of Basic services in informal settlements (Revoked).

Ensure infrastructure projects are used to create employment through labour intensive, promote local contractors, skills development by using labour intensive methods including a massive pothole patching programmes

Municipal infrastructure project are used as EPWP in order to create employment at all times

A131 (2013-08-23) Implementation of Community Works Programme for the unemployed..

Expand free basic services on water and electricity, to include refuse removal to all poor households and continued universal access to free basic services

• Free basic services on water and

electricity, expanded to include refuse

removal to all poor households and

continued universal access to free basic

services e.g. Tariffs and policy review

annually and consulted via Mayoral izimbizo

on ward basis.

Ensure that the municipality adhere to the principle of Batho-Pele: employees will wear name tags all the time

Employees wear name tags all the time

The municipality holds highly the principle of Batho-Pele

Employees are held responsible and accountable for their performance through implementation of PMS so that the MM and Managers directly accountable to the MM can be evaluated.

The performance Management System is functional and is implemented by the Municipality.

The MM has signed the performance Agreements and as well as the Managers directly accountable to the MM can be evaluated.

However, the performance Management Plan needs to be reviewed.

A118 (2013-10-31) Signing and Approval of the SDBIP by Executive Mayor, MM, and HOD’s.

Ensure that all vacant positions are filled All critical positions have been filled

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with properly qualified and suitable candidates

together with the section 57.

Resolutions C10 (2014-07-31), C15 (2013-12-06), C19, C11 all supported the appointment of Section 57 Managers directly accountable to the MM.

LLM: 3. PROMOTE MORE ACTIVE PARTICIPATION IN LOCAL GOVERNMENT - Work with the community to strengthen the

work of self-organized formations such as burial societies, stockvels, cultural groups, youth and women to deepen democracy

• The municipality work with the community to strengthen the work of self-organized formations such as burial societies, stockvels, cultural groups, youth and women to deepen democracy via structures such as LED Forum, IDP Forum, sector Collaboration Forum, Aids Council etc…

• A77 (2013-07-23) Municipal newsletter. • Mayoral business breakfast with business

sector.

- Assist with establishment of a community radio station and update our website on regular basis.

- An item was tabled to council for the community radio station and our website is timeously updated.

- A68 – C119 (2012-08-31) Establishment of the community radio station.

- An item was tabled to council for the community radio station and our website is timeously updated.

- A68 – C119 (2012-08-31) Establishment of the community radio station.

-

- All ward committees are well trained; functional, well-resourced and taken seriously through the office of the Speaker e.g. stipend and Laptops for Ward committees.

- A33 (2011-06-24) Election of ward committees, A94 (2011-11-11) Ward Committees functionality.

- A70 (2012-04-26) Participation indaba. - A98 (Community Participation Policy). -

- Hold at least six community meetings and six Mayoral Izimbizos per year.

-

- Municipality is holding annually 30 Mayoral Izimbizo or community meetings (Ward constitution) per financial year instead of the six community meetings and six Mayoral Izimbizos per year.

-

- Publish and report on regular basis the performance plan for improvement.

- The Municipality is annually publishing its performance plan, assessment outcomes and performance via all possible modes of communication e.g. local newspaper, annual reporting and website.

- Review the tendering system and make it transparent and deal systematically with corruption and shoddy contractual work and contractors who are delivering poor services will be blacklisted and be forbidden from doing business with the government.

-

- The Municipality has reviewed its tendering system and makes it transparent and deal systematically with corruption and shoddy contractual work and contractors who are delivering poor services but not known whether contractors are blacklisted and be forbidden from doing business with the

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government. -

LLM: 4 ENSURE MORE EFFECTIVE, ACCOUNTABLE AND CLEAN LOCAL GOVERNMENT THAT WORKS WITH NATIONAL AND PROVINCIAL GOVERNMENT.

- Functioning of Municipal Sector collaboration forums for better integration and coordination of activities among 3 spheres of Government.

- The Municipality in terms of staff establishment has a new business unit which is responsible for Intergovernmental Relations to foster sector collaboration at all levels. This unit is headed by Manager IGR.

- Enhance our revenue collection and account to the community about the finances of the Municipality.

- Revenue Enhancement Strategy is being implemented and was approved by council.

- A21 (2013-01-25) Revenue enhancement Strategy.

- Improve our billing system and ensure that residents are properly billed through data cleansing and supplementary valuation roll.

- The Municipality has embarked on a data cleansing programme, Revenue Enhancement Strategy and Indigent Policy to ensure that residents are properly billed.

-

- Engage with all our communities so that those who can afford to pay, do pay for services consumed.

-

- The municipality is holding annually 3 Mayoral Izimbizo or Community meetings (ward consultation) per financial year e.g. Tariffs and policy review annually and consulted via Mayoral Izimbizo on ward basis.

-

- Update our indigent policy on regular basis.

-

- The indigent Policy has been reviewed and approved with budget annually.

-

- Achieve a clean audit by 2014. -

- The Municipality has achieved two consecutive qualified audit with findings for 2012/2013 and unqualified 2013/2014.

-

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LLM: 5 BUILD MORE UNITED, NON-RACIAL, INTEGRATED AND SAFER COMMUNITIES.

- Establishment of Ext.8 with 4200 mixed residential units, to promote integrated Human Settlements

- Establishment of Ext.5 with 1000 units for middle class occupation

- The Municipality has reviewed its Human Settlement chapter that promotes Integrated Human Settlement e.g. Ext.8, Ext.5, Rooikoppen and the Agri-village proposal.

- Upgrading of all the informal settlements to eradicate service backlog

- Proclamation of the existing (17) informal settlement in terms of provision of water, sanitation etc.

1.3. LEGISLATIVE CONTEXT The planning context and policy context, within which the integrated development planning is undertaken, is established through national, provincial and local policy and legislation. The major planning instruments that have a critical impact on the IDP are: National Government, Provincial Government (Mpumalanga), District Municipal level and Local Municipal Level.

Legal framework under which planning operate in South Africa

There is a considerable array of legislation that controls planning within the geographic boundaries of

the Republic of South Africa. Some of the most important are as follows: -

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Constitution of RSA No 108 of 1996 – the primary role being the assigning of municipal Planning responsibility to municipalities

Municipal Systems Act No 32 of 2000 – setting out in Chapter 2 the requirement, amongst other, for newly elected municipal councils to prepare and adopt an integrated development plan (IDP) for their respective areas and to provide for annual revision thereof. The IDP is required in terms of the act to include a spatial development framework (SDF) which must include the provision of basic guidelines for a land use system for the municipality.

Development Facilitation Act No 67 of 1995 (DFA) – originally envisaged as interim legislation post the 1994 national elections to facilitate accelerated housing delivery by waving other legislation and giving decision making to provincial Development Tribunals (where established), but utilized to a large extent by the private sector for the development of amongst others, shopping centres, golf course estates, etc. Section of this legislation have since been declared unconstitutional by the Constitutional Court as it usurped the decision making powers of municipalities and is required to be repealed or amended by June 2012. Note: Despite sections of the Act being declared unconstitutional by the court, its General Principles for Land Development, as contained in Chapter 1, Section 3 of the act, are still deemed valid.

Less Formal Township Establishment Act No 113 of 1991 – this act provides for shortened procedures for the establishment of townships, for less formal forms of residential settlement and to regulate the use of land by tribal communities for communal forms of residential settlement. This act is administered by the provinces and it provides for the exclusion of certain laws and the suspension of servitudes and restrictive title deed conditions. Although not challenged as yet in the Constitutional Court, this law is also no doubt, like the DFA, unconstitutional as it shifts decision making from the municipalities to the provinces.

Planning Acts and Ordinances in the provinces. - The majority of legislation directly controlling planning in the nine provinces is still pre-1994 legislation enacted by the original four provinces of South Africa and they are all also generally unconstitutional in some or other aspect. Only in KwaZulu-Natal and in the Northern Cape has new planning legislation been enacted and put into effect since 1994 and even here certain aspects (relating to appeals) are challengeable.

Some of the other provinces are in the process of drafting new planning legislation. As a result of the Constitutional Court ruling with respect to the DFA and the tardiness of the preparation of the new legislation in some provinces, the Department of Rural Development and Land Affairs recently published the Spatial Planning and Land Use Management Bill for comment and which it hopes to have enacted by June 2012. The respective provincial legislation is listed above: -

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1.4. LEGISLATIVE IMPERATIVES AFFECTING PLANNING

1.4.1. OUTCOME-BASED APPROACH TO DELIVERY

To give effect to the above 6 key programmes for delivery on this IDP, government has embarked on an outcomes -based approach to ensure the delivery / implementation of these objectives. In line with this approach, government has formulated and agreed on twelve key Outcomes. These Outcomes have been expanded into high-level outputs and activities, which in turn formed the basis of a series of performance agreements between the President and relevant Ministers. While all of the Outcomes can to some extent be supported through the work of local government, Outcome 9 is specifically directed at local government:

1. Improved quality of basic education.

2. A long and healthy life for all South Africans.

3. All people in South Africa are and feel safe.

4. Decent employment through inclusive economic growth.

5. A skilled and capable workforce to support an inclusive growth path.

6. An efficient, competitive and responsive economic infrastructure network.

7. Vibrant, equitable and sustainable rural communities with food security for all.

8. Sustainable human settlements and improved quality of household life.

9. A responsive, accountable, effective and efficient local government system:

- Output 1: Implement a differentiated approach to municipal financing, planning and support;

- Output 2: Improving access to basic services;

- Output 3: Implementation of the Community Work Programme;

- Output 4: Actions supportive of the human settlement outcome;

- Output 5: Deepen democracy through a refined Ward Committee model;

- Output 6: Administrative and financial capability; and

- Output 7: Single window of coordination

10. Environmental assets and natural resources that is well protected and continually enhanced.

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11. Create a better South Africa and contribute to a better and safer Africa and World.

12. An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship.

1.4.2. MULTIDIMENSIONAL STRATEGIC FRAMEWORK

The need for a “multidimensional strategic framework” to bring about development by guiding key choices and actions to ensure a decent standard of living” for all South Africans by 2030 has been developed through the National Development Plan (NDP) 2030 and has now become the key driver of national policy. The NDP seeks to ensure that relations between national, provincial and local government are improved through a more proactive approach to managing the intergovernmental system, of which local government is central to the implementation of the NDP.

The following figure outlines this relationship.

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In summary, the NDP intends to create a decent standard of living for all South Africans by 2030. A A decent standard of living consists of the following core elements:

Housing, water, electricity and sanitation

Employment

Recreation and leisure

Clean environment

Adequate nutrition

Role of Local Government

Safe and reliable public transport

Quality education and skills development

Safety and security

Quality health care

Social protection

Municipalities have a direct role to plan and deliver on water, sanitation, electricity, waste management, housing and roads and an indirect role to plan to guide the delivery of safety, health, education and job creation. The following diagram indicates that many of the elements of a decent standard of living depend on local government.

It is imperative to identify how municipalities can take forward NDP proposals within their mandate thus the need to strengthen the ability of local government to fulfil its developmental role. To this end, IDPs must focus attention on critical areas such as spatial planning, infrastructure and basic services and the correct prioritization and sequencing of these areas. IDP process needs to be led by municipal staff and it is critical that Mayors are seen as champions of the NDP in their municipalities as provided for in section 30 of the MSA. In the Budget Vote Speech on 17 July 2014, the Minister of Cooperative Governance and Traditional Affairs, Minister Pravin Gordhan highlighted key tasks to take South Africa forward during the next 5 years which is underpinned by the “Back to Basics” Strategy, of which Municipalities have a key role to play as a step towards the implementation of NDP.

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The Back to Basics Strategy sets clear benchmarks of performance in an effort to ensure that all municipalities perform their basic responsibilities, every day, without fail while also responding vigorously to immediate crises and also understanding and responding to the structural and organizational challenges. It also strives to continue to build resilient local government institutions and collectively constructing more rigorous systems of intergovernmental relations planning and delivery. The Mpumalanga provincial implementation response to the NDP is contained in the Mpumalanga Vision 2030 Medium Term Strategic Framework (MTSF) document that provides a provincial expression of the key priorities, objectives and targets enumerated in the NDP and expressed within the manifesto. It is a focused and strategic implementation framework that provides a direct implementation response to the NDP, which describes the Province’s approach to realizing the objectives of the NDP in the provincial context. It builds on and informs past and existing sectoral and related planning interventions for the Province’s strategic overview in order to set high level provincial targets and facilitate decision making and prioritization as depicted in the diagram below:

It is to this end that the Municipality takes note of the implications of the NDP, MTSF, B2BStrategy and other integrated municipal support programme directives in developing its service delivery plans for the purposes of planning, budgeting, implementation, reporting and accountability. The following table briefly outlines the link between key national and provincial policy imperatives and how these are linked to the sphere of local government within the context of the Municipality.

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KEY POLICY IMPERATIVES AND THEIR ALIGNMENT TO THE MUNICIPALITY’S NATIONAL KEY PERFORMANCE AREAS

NATIONAL KEY PERFORMANCE AREAS

KPA 1 BASIC SERVICE

DELIVERY

KPA 2 MUNICIPAL

TRANSFORMATION AND ORGANISATIONAL

DEVELOPMENT

KPA 3 LOCAL ECONOMIC

DEVELOPMENT

KPA 4: MUNICIPAL FINANCIAL

VIABILITY AND MANAGEMENT

KPA 5: GOOD GOVERNANCE

AND PUBLIC PARTICIPATION

KPA 6: SPATIAL

RATIONAL

An effective, competitive and responsive economic infrastructure network

A responsive and accountable, effective and efficient local government system

Decent employment through inclusive economic growth



Sustainable human settlements and improved quality of household life

Protection and enhancement of environmental assets and natural resources

All people in South Africa to feel safe

NATIONAL DEVELOPMENT PLAN 2030 The 6 Pillars that represent the broad objectives of the plan to eliminate poverty and reduce inequality

P1: Capabilities include skills, infrastructure, social security, strong institutions and partnerships both within the country and with key international partners

P2: Focusing on key capabilities of both people and the country

P3: Uniting South Africans of all races and classes around a common programme to eliminate poverty and reduce inequality

P4: Building a capable and developmental state

P1: Capabilities include skills, infrastructure, social security, strong institutions and partnerships both within the country and with key international partners

P1:Capabilities include skills, infrastructure, social security, strong institutions and partnerships both within the country and with key international partners

P5: Raising economic growth, promoting exports and making the economy more labour absorbing

P6:Strong leadership throughout society that work together to solve our problems

NDP 2030 OUTCOMES

Nation building and social cohesion

Developing a capable and developmental state at local government level

Economy and development

Developing a capable and developmental state

Developing a capable and developmental state

Transforming human settlements and space economy

Environmental sustainability and resilience

Economy and development

Building safer communities

BACK TO BASICS GOALS

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Goal 2: Create conditions for decent living by consistently delivering municipal services to the right quality and standard. This includes planning for and delivery of infrastructure and amenities, maintenance and upkeep, including the budgeting to do this. Ensure no failures in services and where there are, restore services with urgency.

Goal 5: Build and maintain sound institutional and administrative capabilities, administered and managed by dedicated and skilled personnel at all levels

Goal 4: Ensure sound financial management and accounting, and prudently manage resources so as to sustainably deliver services and bring development to communities.

Goal 3: Be well governed and demonstrate good governance and administration - cut wastage, spend public funds prudently, hire competent staff, ensure transparency and accountability

Goal 1: Put people and their concerns first and ensure constant contact with communities through effective public participation platforms. This is the essence of our ‘back to basics’ approach.

Goal 2: Create conditions for decent living by consistently delivering municipal services to the right quality and standard. This includes planning for and delivery of infrastructure and amenities, maintenance and upkeep, including the budgeting to do this. Ensure no failures in services and where there are, restore services with urgency.

BACK TO BASICS OUTCOMES

Delivering basic services

Building capabilities and good governance

Building capabilities

Sound financial management

Putting people first and engaging with communities and good governance

Delivering basic services

MPUMALANGA MEDIUM TERM STRATEGIC FRAMEWORK

Delivery Agreement Outcome 9: A responsive, accountable and effective local government system

Single window of Coordination established for review of policy and legislation, revision of planning, improved intervention and support mechanisms and alignment of capacity building programmes within government

Improved Access to Basic Services

Administrative and financial capabilities of municipalities are enhanced

Implementation of the Community Work Programme

A policy Framework that provides for a differentiated approach to Municipal Financing, Planning and support is implemented

Single Window of Coordination

Actions supportive to Human Settlements

Deepening democracy through a refined Ward Committee model

PROVINCIAL MTSF OUTPUTS FOR LOCAL GOVERNMENT

Members of society have sustainable & reliable access to basic services

Sound Financial and administrative management

Local public employment programmes expanded through the Community Work Programme

Sound Financial and administrative management

Intergovernmental and democratic governance arrangements for a functional system of cooperative governance strengthened

Transformed human settlements

Improved Access to Basic Services

Promotion of social and economic development

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MTSF IMPACT INDICATOR

Increased number of households with access to services

Improved public trust and confidence in local government

Increased number of job opportunities created

Improved audit outcome

Improved public trust and confidence in local government

Integrated human settlements

INTEGRATED MUNICIPAL SUPPORT PROGRAMME

Creating decent living conditions

Institutional capacity and administrative capability


Financial management

Good governance and key activities through public participation and community involvement


GERT SIBANDE DISTRICT MUNICIPALITY STRATEGIC OBJECTIVES

Basic Service Delivery and Infrastructure Development

Municipal Transformation and institutional Organizational Development

Local Economic Development

Municipal Financial Viability and Management

Intergovernmental Relations, Good Governance and Public Participation

Spatial Rationale and Municipal Planning Alignment

Improve the quantity and quality of municipal basic services to the people

Improve and sustain financial, human resources and management excellence across the district

Creation of decent job creation, poverty alleviation, sustainable livelihoods & rural development, food security and land reform through LED

Improve and sustain financial, human resources and management excellence across the district

Resource management, Internal governance and information

Stimulate integrated and sustainable and shared regional development through aligned spatial planning

Advance Community Well-being

Restore and maintain the institutional integrity of the District and its constituent LMs

Deepen democracy through effectively and efficiently functional public participation structures, mechanism and processes

Develop internal and external stakeholder relationships and partnerships

Create a single window of coordination for the support, monitoring and intervention in municipalities within the District

LEKWA LOCAL MUNICIPALITY (LLM) STRATEGIC OBJECTIVES

LLM 2: Improve services and broaden access to them

LLM 4:Ensure more effective, accountable and clean local government that works

LLM 1: Build local economies to create more employment, decent work and sustainable livelihoods

LLM 4: Ensure more effective, accountable and clean local government that works

LLM 3:Promote more active community participation in local government

LLM 5: Build more united, non-racial, integrated and safer communities

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1.5. INTERGOVERNMENTAL PLANNING Section 41(1) of the Constitution contains the principles of co-operative government and inter-governmental relations. Accordingly Section 41(1) determines that:

All spheres of government and all organs of state within each sphere must -

o preserves the peace, national unity and the indivisibility of the Republic; o secures the well-being of the people of the Republic; o provides effective, transparent, accountable and coherent government for the

Republic as a whole; o is loyal to the Constitution, the Republic and its people; o respects the constitutional status, institutions, powers and functions of government

in the other spheres; o Not assume any power or function except those conferred on them in terms of the

Constitution; o Exercise their powers and perform their functions in a manner that does not

encroach on the geographical, functional or institutional integrity of government in another sphere; and

o co-operate with one another in mutual trust and good faith by – - fostering friendly relations; - Assisting and supporting one another; - Informing one another of, and consulting one another on, matters of

common interest; - Coordinating their actions and legislation with one another; - adhering to agreed procedures; and - Avoiding legal proceedings against one another

Inter-governmental relations‟ means the relationship between national, provincial and local government. The Constitution states that the three spheres of government are distinctive, inter-dependent and inter-related co-operative governance means that national, provincial and local government should work together to provide citizens with a comprehensive package of services.

1.6. IDP PUBLIC PARTICIPATION PROCESS The citizens of the Greater Lekwa were afforded an opportunity to raise issues they deem very important around service delivery. The reason for this, the final draft IDP and Budget review for 2014/2015 was only adopted by council on 28 May 2014 and the IDP/Budget/PM process plan for 2015/2016 was as well only approved by council on 30 August 2014. This process is critical because it entailed submission of inputs for the fifth review of the Integrated Development Planning (IDP) that is to be aligned with the capital and operational Budget of 2014/2015. Citizens had direct interaction with their respective ward councillors, senior management and officials of the Lekwa Municipality. The public engagement meetings took place before the first draft IDP and Budget review document for 2015/2016 is tabled before council on 31 March 2015. After the IDP/Budget has been adopted by council, it will be send out for public comments and is only when we will allow the public to submit their inputs before the final document is finalised and been tabled to council for approval on end May 2015.

The following pictures demonstrate evidence of the public participation meetings that took place in November 2014 in all 15 wards in the greater Lekwa.

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1.7. IDP REVIEW PROCESS The IDP is reviewed annually, in consultation with communities and stakeholders. Public participation in planning is important, as the municipality has since 5 December 2000 been redefined to include councillors, officials and the community.

The IDP Review process in Lekwa has benefitted from the active community forums within our area, including ward-based inputs from our residents. We are grateful for the resilience in our community in participating in our IDP processes, but we know we can still improve as a municipal institution in how we engage with municipal-wide representative groups and our partners in the rest of government to mobilise resources for the development of our municipal area.

Through the IDP process, we wish to promote shared leadership on the ground, to release creative energy in solving our unique development challenges, and to ensure ownership of our plan. We have applied community-based planning techniques to identify development needs within our 13 wards. We endeavour to move to implement ward-based plans that speak directly to the specific needs in each ward, and to improve the active monitoring of implementation through ward committee structures.

The preparation of a Five-year Integrated Development Plan (IDP) by municipalities is a legislative requirement according to the Municipal Systems Act (MSA) Act No. 32 of 2000. Lekwa Local Municipality has embarked completed on this process in line with Chapter 5, Section 25, of the MSA.

It will be noted that, in terms of section 34 of the Local Government: Municipal Systems Act, No. 32 of 2000, all municipalities are required to review their Integrated Development Plans (IDP’s) on an five year basis (and to the extent that changing circumstances, needs and demands) - in accordance with a prescribed process.

The annual review process thus relates to the assessment of the Municipality’s performance against organizational objectives as well as implementation delivery, and also takes into cognizance any new information or change in circumstances that might have arisen subsequent to the adoption of the previous IDP. The review and amendment process must also adhere to the requirements for public participation as articulated to Chapter 4 of the MSA (2000).In terms of the IDP Review Guidelines, IDPs are reviewed based on 4 primary areas of intervention, i.e. Annual IDP Review, the IDP Process, Amendments in Response to Changing Municipal Circumstances, and Comment from the MEC. The process described and outlined in the flow chart below represents a continuous cycle of planning, implementation and review. Implementation commences after the Municipal Council adopts the initial IDP whilst Public Participation remains pivotal throughout the process of the IDP.

In terms of the National Department of Provincial and Local Government’s document entitled Guide VI: Implementing the IDP, the process to be followed when undertaking an annual IDP Review is as follows:

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The annual IDP review process is set out below:

Source: National Department of Provincial and Local Government’s document entitled Guide VI: Implementing the IDP

IDP

REV

IEW

PR

OC

ESS

Performance Management

System

Organisational Performance Management Preparing For IDP Review

Implementation Management Information Institutional Preparedness

Individual Performance Management

Required IDP Process And Product Improvement

Reporting And Close-out

New Informantion Or Knowlegde

Inter-governmental Planning And Budgeting Information

New Or Updated Baseline Information

Change To Policy Or Legislation

More Indepth Information On Priority Issues

Results Of Feasibility Studies And Environmental Impact Assessments

Changing Conditions And Unexpected Events

Inputs From Stakeholder And Constituency

Decide On And Make Relevant Changes

Council Adoption

As Per MSA Regulations

Prepare And Adopt Annual Budget

Municipal Budget To Be Informed By Revised IDP

PUBLIC PARTICIPATION

IDP IMPLEMENBTATION

IDP MONITORING

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Table 2: ORGANIZATIONAL ARRANGEMENT FOR PUBLIC PARTICIPATION

Table below indicates the roles and responsibilities of the various internal stakeholders within the

IDP Review process. The tables specifically focus on the IDP Review activities of the various role

players.

NO. ROLE PLAYERS ROLES AND RESPONSIBILITIES

1. Municipal Council The Council will approve the reviewed IDP.

Will consider the Framework/Process Plan which should set out the process for the new IDP cycle.

2. Executive Mayor and Mayoral Committee

The Mayoral Committee must:

Decide on the Process Plan for IDP Review

Responsible for overall management, co-ordination and monitoring of the review process, and may assign responsibilities to the Municipal Manager

Submit reviewed IDP framework and draft IDP to Council

Develop terms and criteria for Representative Forum.

Give political direction

3. Municipal Manager with delegated powers to the IDP Manager

The Municipal Manager is responsible for the management and co-ordination of the preparation of the IDP process which include but not limited to the following:

Responsible for the day to day management of the planning process plan and ensuring that timeframes are being adhere to and resources are and managed effectively and efficiently;

Co-ordinate the involvement of all different role players;

Ensuring the horizontal and vertical alignment in the planning process, including Sectors;

Ensure that the links between the processes of performance management, monitoring, evaluation and review are maintained;

Ensuring compliance with National and Provincial requirements and legislations;

Ensure appropriate participation of all the relevant Stakeholders;

Ensure proper documentation of outcomes;

Chairing the Steering Committee, Technical Committee; and

Management of Service Providers

4. IDP Steering Committee Framework/Process Plan management structure;

Allocation of duties and monitoring;

Overall management including the appointment of technical consultants;

Decision on roles and responsibilities;

Commission research studies and recommend appointment of service providers;

Decide on matters to be referred to Technical Committee for alignment and integration purposes.

5. IDP Representative Forum The Executive Mayor or Representative chairs the forum meetings.

Constituted of the Executive Mayor/IDP manager//CBO’s/NGO’s/Business Forum/ Community Forum/Youth /Woman/ Disabled Org./ Political parties /Traditional Leadership

This Forum consist of community participation structure/stakeholders in their respective organized formations, to represent the interests of all stakeholders and ensure proper communication to guarantee representative and collaborative participation during the review process;

Will provide an organizational mechanisms for discussion, negotiations and decision making between the stakeholders including municipalities and government departments during the Municipal process;

Monitor the performance of the planning and implementation process.

Make recommendations to the council on planning and development priorities.

6. IDP Technical Committee Will be chaired by the Municipal Manager or a designated Official. Consists of the Municipal Manager and Heads of Departments as well as Divisional Managers.

Will deal with matters relevant and relating to District wide issues;

Consider District wide programs and integration to PGDS;

Consider and advise the IDP Representative Forum on the evaluation of sector plans;

Attend to the alignment of the IDP to that of the GSDM

Deliberate on inter-sectoral programmes and recommends to the Representative Forum;

Give advice and foster sectoral alignment; and

Will timeously report on progress which will then be forwarded to the Steering Committee

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Table 3: DISTRIBUTION OF ROLES AND RESPONSIBILITIES (INTERNALLY & EXTERNALLY)(

NO. IGR FORUMS ROLES AND RESPONSIBILITIES

1. Gert Sibande District Municipality

(Inter-municipal planning)

Horizontal alignment of IDPs between local and district municipalities;

Vertical alignment between district and local municipalities, National and Provincial Governments as well as the service providers;

Facilitate vertical alignment of IDPs with other spheres of government and sector departments and the preparation of joint strategy workshops with local municipalities, provincial and national role players and other subject matter specialists;

Formulate the District’s Process Plan based on the Framework;

Formulate, manage, and approve the District’s IDP

Monitor and evaluate the District IDP Process Plan;

Ensure that draft process plans are compiled by local municipalities;

Ensure that the process plans adhere to the Framework as agreed;

Ensure that all municipalities under the district adhere to the timeframes in the Framework Plan as agreed;

Co-ordinate the alignment of the district’s budget process with the District IDP Process and local IDP Processes.

2. IDP Managers Forum Chairperson: District IDP Manager;

Secretariat: PIMS Staff;

Consist of the seven IDP Managers and representatives on the sector departments;

The IDP Managers Forum will meet bi-monthly to attend to the following issues:

To co-ordinate technical submission and the compilation of the respective IDP documentation;

Ensure horizontal alignment between the district and local municipalities IDP’s; and

Ensure vertical alignment between municipalities, National and Provincial Government.

Ensure that all reports of the Extended Technical Committees are taken up in the IDP process.

3. Sector Departments Identify an IDP co-ordinator in the Sector Department (knowledgeable persons consistent in the revision process and responsible for all IDP related issues in the District);

Contribute knowledge and ideas about planning issues in the province and sectors;

Contribute relevant information on the provincial sector departments’ plans, programmes, budgets, objectives, strategies and projects in a concise and accessible manner;

Ensure that their objectives, strategies and projects take various IDP into consideration and adjust their budgets as informed by the various IDPs;

Contribute sector expertise and technical knowledge to the formulation of municipal strategies and projects;

Engage in a process of alignment with district municipalities; and participate in the provincial management system and co-ordination;

Ensure active participation in various Technical Sub-Committees and IDP Extended Technical Committees.

4. Mayoral Outreach (Izimbizos)

Through road shows / Outreach programmes to get community inputs and to provide feedback

5. Ward Committees Consulted via the Executive Mayoral outreach.

Link the planning process to their wards

Assist in the organizing of public consultation and participation

Ensure that the annual municipal budget and business plans are linked to and based on the IDP

6. CBW’s / NGO’s / CDW’s To provide vital information and support during planning, evaluation, monitoring through the Representative Forum.

7. Department of Corporate Governance and Traditional Affairs

A representative from the Department will serve as permanent member of the District IDP Extended Technical Committee.

The department will finance to attendance of meetings of the various technical committee meetings by the relevant sector departments;

Will guide provincial sector departments’ participation in and their contribution to the municipal planning processes;

Will guide municipalities in assessing draft IDPs and in aligning their sector programmes and budget with the IDP;

Assist in accessing financial grants for IDP process;

Monitor progress of the IDP processes through the district and more specifically the IDP Managers Forum;

Facilitate resolution of disputes related to the IDP;

Organize IDP related-training when required;

Co-ordinate and manage the MEC’s assessment / comments of IDPs.

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1.8. IDP PROCESS PLAN FOR 2015/2016 An Integrated Development Plan, Budget and Performance Management System require a planning process with the involvement of a wide range of roles players from inside the area of jurisdiction of the Lekwa municipality. Other role players are the Gert Sibande District Municipality, Provincial - and National Sector Department. Such a process needs to be properly organized and prepared. The IDP should be completed towards the end of March 2015. The process plan, which serves a business plan, should have been submitted to the provincial Department of Corporative Governance and Traditional Affairs and Gert Sibande District Municipality. It is necessary to briefly summarise the process followed for the 2015/2016 IDP process as prescribed in the IDP Process Plan. The components of the Process Plan are as follows:

Progress reporting;

Year Planner;

Ward Analysis;

Needs Collection;

Updating of Projects;

Final Document Compilation;

IDP’s are formulated in terms of the Municipal Systems Act, 2000 (Act 32 of 2000) and need to be revised on an annual basis. It is of critical importance that the IDP process informs the Budget and therefore the IDP needs to be far advanced in order to align the two processes. (Refer to Table “A” for more detail) During the compilation of this IDP process plan, Provincial and District Council Guidelines were also taken into consideration as we are required to align with the district.

Table: Yearly Process Plan

Action/Project Jul 13

Aug 13

Sept 13

Oct 13

Nov 13

Dec 13

Jan 14

Feb 14

March 14

Apr 14

May 14

June 14

Compilation and approval of Process Plan

Status Quo & Analysis

Compilation and Finalization of Ward IDP documents

Ward Committee public meetings (IDP)

IDP Representative forum meeting / meetings

Draft IDP & Budget document completed

Public meetings (Draft Budget)

Draft IDP & Budget approved by Council

Final Council approval

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2. CHAPTER 2: DEVELOPMENT STRATEGIES

2.1. INTRODUCTION

This section provides the strategic IDP Review Framework (Implementation Framework) for the 2011 – 2012 IDP Review process. The municipal vision provides an overarching guideline to the municipality, with the municipal objectives and strategies providing the detail implementation framework.

The Municipality implements its mandate in accordance with the powers and functions assigned to it by the Constitution; and continue to endeavour to do so. There are no agreements between the Municipality and other organs of government to implement its powers and functions.

2.2. LEKWA LOCAL MUNICIPALITY’S “VISION”

A vision is a statement of the desired long-term development of the municipality based on the identified strategic issues and related to the specific conditions in the municipal area.

The Municipality’s Development Vision developed in 2006 remains unchanged reads as follows:

Vision “To be the leading, people centred municipality excelling in economic growth, development and governance”

To realize this vision,

We believe there are basic elements that all citizens, the business community and visitors must realize.

2.3. LEKWA LOCAL MUNICIPALITY’S “MISSION

They must be able to see:

• Transparent and accountable governance

• Accelerated customer focused affordable service delivery

• Creation of conducive environment for economic development and growth

• Sustainable infrastructural development and maintenance

• Enhanced community participation in the affairs of the municipality

• To initiate ground breaking innovations in the way we conduct our business

CORE VALUES

• Excellence

• Trustworthiness

• Timeous Responsiveness

• Transparency

• Batho-Pele Principles

Achieving the vision as interpreted, will also mean addressing the key development challenges by

making key interventions with the following goals:

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2.4. STRATEGIC FOCUS AREA

Emanating from the situational analysis and the ANC manifesto of 2013-2016 undertaken towards

the development of the IDP, the municipality identified a number of challenges and constraints

which impact on the way the municipality functions and fulfils its mandate as per section 152 of the

South African constitution. Challenges confronting the municipality include a declining revenue base

and poor management of resources, inefficiencies that limit the manner in which the municipality

interface with the communities, aging infrastructure due to truck haulage and deferred maintenance,

structural inefficiencies that result in poor service delivery standards, low economic growth and high

unemployment rate, vulnerable environmental assets and natural resources.

To address the identified challenges and work towards realization of the vision, the municipality has

identified the following long- term strategic objective which will be known as 5 LLM’s;

LLM: 1 Build local economies to create more employment, decent work & sustainable livelihoods

LLM: 2 Improve service and broaden access to them

LLM: 3 Promote more active community participation in local government

LLM: 4 Ensure more effective, accountable and clean local government that works with

LLM: 5 build more united, non-racial, integrated and safer communities

The municipality has aligned the key strategic objectives and will strive to attain them within the

context of the five key local government performance areas:

The Key Development Objectives approach to Performance Management, However, the Municipal

Systems Act no:32 of 2000 require that the Performance Management System represent the

Municipality’s cycle and processes of performance planning, monitoring, measurement, review,

reporting and improvement. In adopting this strategy, and in keeping with the Key Performance

Areas indicated by the Department of Provincial and Local Government, the Key Development

Objectives will be now be customized using the following five perspectives or Key Performance

Areas:

Infrastructure Development and Service Delivery

Local Economic Development (LED)

Municipal Financial Viability and Management

Good Governance and Public Participation

Municipal Transformation and Organizational Development

Taking into account the prevailing economic environment and global factors that impact on

development, the municipality has made some significant strides or inroads to address key

development challenges within the LLM. There is however more work to be done towards addressing

the identified focal areas.

2.5. NINE (9) STRATEGIC FOCUS AREAS

Over the next five year term municipality will concentrate on the Nine (9) strategic focal areas outlined below

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2.5.1. STRATEGIC FOCUS AREA 1: EQUITABLE PROVISION OF SERVICES SUCH AS WATER, SANITATION, ELECTRICITY, WASTE REMOVAL ETC.

In the next five years the municipality will ensure that residents have equal access to services they are entitled to. Some areas like Platrand, Holmdene, Hartbeeskuil and Folly, by virtue of their location do not receive certain services. For example most of these areas are not provided with a refuse removal service and do not benefit from free basic electricity, water, sanitation services. Disparities also exist within the urban areas wherein standards of service vary.

2.5.2. STRATEGIC FOCUS AREA 2: CREATION OF AN INTEGRATED AND SUSTAINABLE

HUMAN SETTLEMENT

The focus over the past has been on delivering basic needs and housing. In spite of the remaining backlogs major strides have been in this regard. However there still remains a huge challenge in terms of ensuring that we do not just deliver houses but create integrated and sustainable settlements. The challenge is about building sustainable human settlement where residents have access to social and community facilities, economic opportunities, a healthy and sustainable environment where opportunities can be accessed through convenient public transport and safe roads network.

Integral to the creation of sustainable human settlement is, integrated planning and implementation. The municipality has developed its Integrated Human Settlement Plan (Housing Chapter), which will guide future development and investment.

2.5.3. STRATEGIC FOCUS AREA 3: CREATION OF A LINKED ECOLOGICAL OPEN SPACE

The aim of an Open Space is to establish a thorough understanding on the intrinsic value of Open Space and to then develop a visionary roadmap towards the creation of an exceptional Open Space network for the town and its people

2.5.4. STRATEGIC FOCUS AREA 4: DELINEATION OF AN URBAN EDGE

The delineation of an urban edge is envisaged in order to:

Control sprawl.

Direct development in appropriate areas and

Assist in countering the outward pressure for urban expansion. This policy should also contain guidelines for the development inside and outside the urban edge

2.5.5. STRATEGIC FOCUS AREA 5: ESTABLISHMENT OF AN EFFICIENT ACCESS AND INTEGRATED MOBILITY

It is common knowledge that within the municipality access to basic households and community services are less optimal. Mobility to access services is further constrained by the fragmented spatial form which is largely attributable to flawed apartheid spatial planning patterns. There are also disparities in how rural and urban communities’ access services, with provision of services biased in favour of urban services. The disparities will have to be addressed in a manner that makes no distinction between rural and urban areas.

To improve mobility within LLM will also require expediting the implementation of the Integrated Transport Plan including connecting the urban nodes

2.5.6. STRATEGIC FOCUS AREA 6: CREATION OF A FUNCTIONAL HIERACHY

Development needs to be concentrated and directed to specific nodes and that higher densities should be encouraged. Although the SDF, from a larger strategic spatial perspective, aims to guide

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and direct such future development it is still necessary to develop specific development strategies and guidelines to control and direct such development. This implies that nodes are very important in a sense that the upliftment of rural areas as residents are mostly reliant on non-motorized transport and have to travel long distances to access basic facilities.

First Order Node: Standerton, Second Order Node: Morgenzon, Third Order Node: Thuthukani, Platrand and Holmdene and Fourth Order Node: Hartbeeskuil, the Folly, Val, Node1, 2 and 3.

2.5.7. STRATEGIC FOCUS AREA 7: FINANCIAL AND ENVIRONMENTAL SUSTAINABILITY

In order for the municipality to fulfil its mandate as stipulated in the constitution of the country, there is a need to maintain financial viability and expand its revenue base in relation to expenditure. This requires robust strategies to turn around the current predicament and ensure that the municipality is a financial sound position over the next five years and beyond.

With regard to environmental sustainability, the municipality has ecologically sensitive land that has to be protected from urban development and those areas include areas such as Firstly; Grootdraai Dam, Wetlands and Pans, Rivers and Water courses, Conservative areas and Koppies, Important and Necessary Areas and highly significant Areas and Ecological Corridors.

Secondly; land that has high agricultural potential and land that is currently used for agriculture was identified to be protected from urban development.

2.5.8. STRATEGIC FOCUS AREA 8: EFFECTIVE LEADERSHIP AND GOOD GOVERNANCE

Corruption and poor service delivery undermines the credibility of the state. Poor state credibility leads to a democratic deficit undermining democracy and investment confidence. A weak local government leads to low investor confidence for both the state and private sector decision. Poor governance leads to poor economic performance.

A well governed municipality means a clear and transparent agenda for long term strategic work is formulated in co-operation with all stakeholders and communicated to all parties affected by the development process. A well governed municipality is dependent on a reciprocal approach by other government spheres and agencies. Increased community feedback and engagement and improved customer reciprocity are other mitigating measures to apply in a democratic and well governed municipality. Going forward the municipality will strive to become a well governed municipality.

2.5.9. STRATEGIC FOCUS AREA 9: BOOSTING THE LOCAL ECONOMY AND JOB CREATION

The municipality acknowledges that low economic growth and high unemployment rate are still

prevalent and present a major challenge. These further translate to relatively high levels of poverty

which is widespread within the LLM.

High dependency ratio (11700 H/H living below poverty lines), Low literacy and education levels, a

relatively high Gini coefficients or high levels of income inequality, labor dependency ratio, which

indicates the number of persons that each economically active person has to support, is 3.88 prove

some serious treats to the future development of the local economy.

The main focus of the municipality is placed mainly on the following:

• Promote and support sustainability of existing businesses. • Promote small and micro sized rural enterprises. • Tourism growth and promotion: conferencing, casino, motels game farms, natural sites ect.

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• Creation of job opportunities. • Industries to support SMME activities. • Improve skills development. • Increase the revenue potential of the Municipality. • Develop the business potential of the area. • Establish the municipality as one of preference for national and international visitors.

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3..CHAPTER 3 : SITUATIONAL ANALYSIS

Area: 4585km²

Description: Lekwa Local Municipality was established on the 5th of December 2000 after the amalgamation of three former Transitional Local Councils, namely Standerton, Sakhile and Morgenzon. Lekwa Local Municipality is one of seven municipalities within the Gert Sibande District Municipality in the Mpumalanga province. It is located in the south-west of the Gert Sibande District Municipality, with immediate entrances to the KwaZulu-Natal, Gauteng and Free State provinces. Newcastle, Heidelberg and Vrede are respective immediate entrances. Standerton serves as an urban node, whilst Morgenzon, which is 45km north-east of Standerton, serves as a satellite node. It is landlocked by the following local municipalities: Dr Pixley Ka Isaka Seme and Msukaligwa on the east, Dipaliseng on the west, and Govan Mbeki on the north. The south edge is abutted by Mpumelelo Local Municipality, which is in the northern part of the Free State province. The Lekwa Municipality lies on the large open plains of the Highveld region, which is characterised by tall grass, and it is transversed by the Vaal River, which flows in a western direction. The municipality is named after the Vaal River, which is commonly known as Lekwa (the Sesotho name for the Vaal River).

Cities/Towns: Morgenzon, Standerton

Main Economic Sectors: Agriculture, forestry and fishing (30%), community, social and personal services (13%), and Private households (12%).

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3.1. MUNICIPAL DEMOGRAPHICAL OVERVIEW Population 115 662

Age Structure

Population under 15 28.60%

Population 15 to 64 66.40%

Population over 65 5.00%

Dependency Ratio

Per 100 (15-64) 50.60

Sex Ratio

Males per 100 females 99.40

Population Growth

Per annum 1.13%

Labour Market

Unemployment rate (official) 25.90%

Youth unemployment rate (official) 15-34 35.20%

Education (aged 20 +)

No schooling 11.20%

Higher education 10.30%

Matric 25.10%

Household Dynamics

Households 31 071

Average household size 3.60

Female headed households 35.70%

Formal dwellings 73.60%

Housing owned 50.00%

Household Services

Flush toilet connected to sewerage 83.60%

Weekly refuse removal 82.20%

Piped water inside dwelling 55.20%

Electricity for lighting 88.60%

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3.2. SOCIO-ECONOMIC ANALYSIS

3.2.1. DEMOGRAPHIC INDICATORS

DEMOGRAPHIC INDICATORS

Stats SA

Census

Stats SA Census

Share of Gert Sibande’s figure

Share of Mpumalanga figure

Ranking: highest (1) – lowest (18)

2001 2011 2011 2011

Population number 103 262 115 662 11.1% 2.9% 12

Number of households 26 199 31 071 11.4% 2.9% 13

Area size - km2 4 586 14.4% 6.0% 10

Population per km2

25

According to Stats-SA (2011 Census), 115 662 people were recorded in Lekwa – 11.1% of Gert Sibande’s population.

Population grew by 12.0% between 2001 & 2011 while annualised population growth rate was measured at 1.1%.

The population number in 2030 estimated at 143 464 people given the historic population growth per annum.

84.2% Africans, Whites 11.4%, Colored 2.9%, Asians 1.2% and Others 0.3%.

Males 49.8% and females 50.2%.

Youth of up to 34 years, 65.2% of Lekwa’s population.

Number of households 31 071 (3.7 people per household) – 11.4% of Gert Sibande’s

Female headed households 35.7% and child headed (10-17 years) households 0.3 % in 2011

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3.2.2. YOUTH INDICATORS

Relevant indicators regarding youth by region, 2011 Census

Region Youth (0-34 years) as % of population

Child headed households as % of total households

Child support grant as % of total grants (2013/14)

Youth unemployment rate

Gert Sibande 69.0% 0.7% 72.3% 38.4%

Chief Albert Luthuli 72.5% 1.1% 77.0% 45.1%

Msukaligwa 69.1% 0.6% 71.5% 34.5%

Mkhondo 72.9% 1.1% 73.0% 44.6%

Dr Pixley Ka Isaka

Seme

69.3% 1.2% 69.3% 45.1%

Lekwa

65.2% 0.3% 64.5% 35.2%

3.2.3. LABOUR INDICATORS

LABOUR INDICATORS Census Census Share of Gert Sibande's figure

Ranking: best (1) – worst (18)

2001 2011 2011

Working age population (15-64) 66 210 76 784

Economically Active Population (EAP)/Labour Force

41 871 46 013

Number of employed 26 584 34 118 13.2%

Number of unemployed 15 287 11 895 10.8%

Unemployment rate (%) 36.5% 25.9% 3

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• Unemployment rate of 25.9% (strict definition) in 2011 – 11 895 unemployed as a percentage of the EAP of 46 013 – decreasing trend (estimated 2013 unemployment rate by IHS Global Insight 23.2%).

• Unemployment rate for females 33.9% and males 19.5% - youth unemployment rate at 35.2% in 2011. • Highest unemployment rate in Ward 14 (39.5%) & lowest in Ward 10 (5.5%). • Employment increased by 7 534 between 2001 & 2011. • Employment number 13.2% of Gert Sibande's employed. • Formal sector 71.4% & informal sector 16.8%.

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3.2.4. LABOUR INDICATORS

Leading industries – agriculture (24.5%), trade (19.4%) & community services (13.8%).

Increasing role/share of mining & community services and decreasing role/share of agriculture & trade as employer.

Agriculture25%

Mining 5%

Manufacturing 10%

Utilities 3%

Construction 5%

Trade 21%

Transport2%

Finance 5%

Community services

11%

Private households

13%

2001

Agriculture24.5%

Mining 4.3%

Manufacturing 6.3%

Utilities 4.0%Construction

5.7%

Trade 19.4%

Transport2.7%

Finance 7.7%

Community services13.8%

Private households

11.5%

2013

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3.2.5. EDUCATION INDICATORS

EDUCATION INDICATORS Trend Latest figure

Better (+) or worse (-) than Gert Sibande

Better (+) or worse (-) than province


2001 2011

Number of population 20+ with no schooling

11 157 7 836 6

Population 20+ with no schooling (%) 19.1% 11.2% (+) (13.3%) (+) (14.0%) 6

Population 20+ with matric & higher (%) 21.9% 35.8% (-) (37.3%) (-) (38.8%) 14

Functional literacy rate (%) 60.8% 76.5% (=) (76.5%) (-) (76.9%) 9

Citizens of 20+ and older with no schooling 11.2% - 7 836 people – more than 9% of Gert Sibande’s figure of 79 538 in 2011.

Population 20+ with matric & higher 35.8% - improving but lower than district and provincial levels.

Functional literacy rate (15 years+ with grade 7 qualifications or higher) improving but lower than provincial and district levels.

Matric pass rate at 78.5% in 2014 and improving slightly – ranked seventh in province and 30.1% university/degree admission rate.

Lekwa has 12 government funded ECD (Early Childhood Development) centres in the 2014/15 financial year.

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3.2.6. YOUTH INDICATORS

Local municipal area

2011 2012 2013 2014

Lekwa

71.1% 77.1% 78.5% 84.7%

Dipaleseng 42.6% 66.4% 72.6% 81.4%

Msukaligwa 74.1% 70.9% 75.9% 80.6%

Chief Albert Luthuli 70.4% 71.1% 79.4% 80.1%

Govan Mbeki 71.3% 64.2% 77.1% 76.3%

Mkhondo 55.2% 68.3% 73.7% 70.9%

Dr Pixley Ka Isaka

Seme

46.0% 65.6% 68.1% 68.1%

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EDUCATION INDICATORS Trend Latest figure

Better (+) or worse (-) than Gert

Sibande

Better (+) or worse (-) than province


2001 2011

Number of population 20+ with no schooling

11 157 7 836 6

Population 20+ with no schooling (%) 19.1% 11.2% (+) (13.3%) (+) (14.0%) 6

Population 20+ with matric & higher (%) 21.9% 35.8% (-) (37.3%) (-) (38.8%) 14

Functional literacy rate (%) 60.8% 76.5% (=) (76.5%) (-) (76.9%) 9

Citizens of 20+ and older with no schooling 11.2% - 7 836 people – more than 9% of Gert Sibande’s figure of 79 538 in 2011.

Population 20+ with matric & higher 35.8% - improving but lower than district and provincial levels.

Functional literacy rate (15 years+ with grade 7 qualification or higher) improving but lower than provincial and district levels.

Matric pass rate at 78.5% in 2014 and improving slightly – ranked seventh in province and 30.1% university/degree admission rate.

Lekwa has 12 government funded ECD (Early Childhood Development) centres in the 2014/15 financial year.

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3.2.8. HEALTH INDICATORS

HEALTH INDICATORS 2010 2011 2012 Ranking: best (1) – worst (18)

HIV prevalence rate - survey (pregnant women attending antenatal clinic 15-49 years old)

50.0% 32.5% 47.4% 16

TB cases 1 106 843 611 5

2011 2012 2013 Ranking: best (1) – worst (18)

Inpatient neo-natal death rate (per 1k) 8.8 11.4 9.1 7

PUBLIC HEALTH FACILITIES 2013

Number of clinics 5 Number of community health centres (CHC) 1 Number of hospitals 1

• HIV prevalence rate of pregnant women 47.4% - deteriorating between 2011 & 2012 and 3rd

worst (highest) among the 18 municipal areas according to Mpumalanga DoH.

• TB cases – improving between 2010 and 2012. • Inpatient neo-natal death rate (inpatient deaths within the first 28 days of life per 1 000 estimated live births) – improving to 9.1

between 2012 and 2013. • Clinics – 5 of Gert Sibande’s 56 clinics. • Community health centres – 1 of Gert Sibande’s 18 CHCs. • Hospitals – 1 of Gert Sibande’s 9 hospitals.

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BASIC SERVICE INFRASTRUCTURE

INDICATORS

Trend Latest figure Better (+) or worse

(-) than Gert

Sibande

Better (+) or worse (-)

than province

Ranking: best (1) –

worst (18) 2001 2011

% of households in informal dwellings 31.9% 23.9% (-) (16.8%) (-) (10.9%) 16

% of households with no toilets or with bucket system

26.9% 5.1% (+) (5.8%) (+) (7.2%) 6

% of households with connection to piped (tap) water: on site & off site

96.9% 97.6% (+) (91.1%) (+) (87.4%) 3

% of households with electricity for lighting

60.6% 88.6% (+) (83.4%) (+) (86.4%) 7

% of households with weekly municipal refuse removal

58.5% 82.2% (+) (63.6%) (+) (42.4%) 3

• All basic service indicators better than district and provincial levels with the exception of households with informal dwellings. • All indicators improving & ranked third highest with respect to households with connection to piped water on site & off site and weekly

municipal refuse removal.

• Blue Drop Report ranked 12th

- needs attention.

• According to Green Drop Report waste water services ranked 4th

in 2012.

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3.2.10. HOUSING 2011

• Formal housing 73.6% - 22 858 households. • Traditional housing 1.8% – 570 households. • Informal housing 23.9% - 7 414 households. • Informal housing – highest/worst in Ward 15 (42.8%) & lowest/best in Ward 10 (0.6%).

Formal 73.6%

Traditional 1.8%

Informal 23.9% Other 0.7%

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3.2.11. SANITATION 2011

• Flush/chemical toilets 86.6% - 26 899 households. • Pit latrines (6.4%) 1 980 households – pit toilets with ventilation 1.7% - 516 households & pit latrines without ventilation 4.7% - 1 465

households. • No toilets 4.1% - 1 280 households. • No toilets – highest/worst in Ward 13 (21.0%) and lowest/best in Ward 10 (0.1%).

No toilets 4.1%

Flush toilet/chemical toilets 86.6%

Pit toilet with ventilation1.7%

Pit toilet without ventilation 4.7%

Bucket toilet 1.0% Other 1.9%

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3.2.12. PIPED WATER-2011

• Piped water in a dwelling or yard 90.6% - 28 145 households. • Piped water on a communal stand 7.1% – 2 195 households. • No access to piped water 2.4% - 731 households. • No access to piped water – highest/worst in Ward 13 (17.2%) & lowest/best in Ward 8 (0.2%).

Piped (tap) water inside dwelling or yard 90.6%

Piped (tap) water on a communal stand 7.1%

No access to piped water (tap) 2.4%

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3.2.13. BLUE DROP PERFORMANCE

MUNICIPAL AREA 2010 2011 2012 Ranking: best (1) – worst (18)

Govan Mbeki 78.9 77.5 77.5 7 Dr Pixley Ka Isaka Seme 46.9 40.7 9 Dipaleseng 6.8 40.7 10

Lekwa 19.5 10.4 34.7 12 Msukaligwa 10.5 21.2 14 Chief Albert Luthuli 8.2 9.7 18.4 16 Mkhondo 28.6 5.0 11.3 18

3.2.14. GREEN DROP PERFORMANCE (RISK PROFILE AND LOG BY MUNICIPAL AREA)

MUNICIPAL AREA 2011 2012 Ranking: best (1) – worst (18)

Lekwa 88.9% 54.0% 4 Chief Albert Luthuli 87.0% 56.5% 5 Dr Pixley Ka Isaka Seme 78.9% 72.9% 10 Msukaligwa 90.7% 73.1% 11 Govan Mbeki 68.4% 83.2% 14 Mkhondo 91.7% 88.2% 15 Dipaleseng 72.2% 92.7% 16

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3.2.14. BASIC SERVICE DELIVERY Household Services Index by Local municipal area, 2001 - 2011

0.5

8 0.6

5

0.6

5

0.6

2 0.6

8

0.7

0

0.7

0

0.6

8

0.7

2

0.7

7

0.7

7

0.7

2

0.7

1

0.7

3

0.7

4

0.7

1

0.7

5 0.8

4

0.7

0

0.7

0

0.7

1

0.7

1

0.7

2

0.7

4

0.7

6

0.7

9

0.8

1

0.8

1

0.8

2

0.8

3

0.8

3

0.8

4

0.8

4

0.8

5

0.8

7

0.8

9

0.0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0H

ou

seh

old

se

rvic

es

ind

ex

Region2001 2011

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3.2.15. HUMAN DEVELOPMENT INDEX

2001 2004 2009 2013 Ranking: best (1) - worst (18)

Govan Mbeki 0.56 0.57 0.60 0.65 3

Msukaligwa 0.49 0.50 0.54 0.61 7

Lekwa 0.50 0.51 0.54 0.61 8

Dipaleseng 0.44 0.46 0.51 0.59 11

Dr Pixley Ka Isaka Seme 0.42 0.43 0.48 0.56 12

Chief Albert Luthuli 0.42 0.42 0.46 0.55 13

Mkhondo 0.42 0.42 0.46 0.53 14

3.2.16. AVERAGE HOUSEHOLD INCOME

MUNICIPAL AREA 2001 2011 Ranking: highest (1) – lowest (18)

Lekwa R 38 113 R 88 440 5

Msukaligwa R 31 461 R 82 167 7

Dr Pixley Ka Isaka Seme R 23 399 R 64 990 11

Dipaleseng R 19 454 R 61 492 12

Mkhondo R 26 935 R 53 398 13

Chief Albert Luthuli R 22 832 R 48 790 14

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3.2.17. HOUSEHOLD GOODS - 2011

Refrigerator Electric stove Computer Motor car Television Cellphone

Household goods 75.1% 81.4% 17.4% 30.2% 81.4% 91.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Pe

rce

nta

ge a

cce

ss

Household goods

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3.2.18. HOUSEHOLD GOODS INDEX Household Goods Index by Local municipal area, 2001 - 2011

0.3

1 0.3

7

0.2

9

0.3

3 0.3

9

0.3

8

0.4

2

0.4

1 0.5

1

0.3

8

0.3

4

0.3

6 0.4

4

0.4

6

0.4

7

0.4

2

0.4

6 0.5

3

0.5

5 0.6

2

0.6

2

0.6

3

0.6

3

0.6

4

0.6

5

0.6

5

0.6

5

0.6

5

0.6

7

0.6

7

0.7

2

0.7

2

0.7

2

0.7

2

0.7

3

0.7

4

0.0

0.1

0.2

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0.4

0.5

0.6

0.7

0.8

0.9

1.0

Ho

use

ho

ld g

oo

ds

ind

ex

Region2001 2011

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3.2.19. INEQUALITY AND POVERTY

INDICATORS Trend Latest figure Better (+) or worse (-) than Gert Sibande

Better (+) or worse (-) than

province


2001 2004 2009 2013

Share of population below lower-bound poverty line

47.7% 48.1% 41.7% 28.4% (+) 35.5% (+) 36.5% 6

Number of people below lower-bound poverty line

52 894 54 908 47 698 33 863 6

Bottom/poorest 40% share of income

8.0% 7.3% 8.0% 8.1% (+) 7.5% (+) 7.6% 12

• Share of population below lower-bound poverty line 28.8% in 2013 – improving and lower than district and provincial averages.

• 34 282 people below the lower-bound poverty line in 2013 – declining/improving and 6th

lowest among local municipalities. • Proportion of income earned by the bottom/poorest 40% of households in Lekwa was 8.0% in 2013 – less than NDP/Vision 2030 target

of 10% by 2030.

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3.2.20. INCOME INEQUALITY

Bottom/poorest 40 % households’ share of income, 2001 - 2013 2001 2004 2009 2013 Ranking: best

(1) - worst (18)

Chief Albert Luthuli 8.4% 7.9% 9.8% 9.9% 5

Mkhondo 7.9% 7.6% 8.9% 9.1% 6

Dipaleseng 9.1% 7.4% 8.7% 8.8% 7

Lekwa 8.0% 7.3% 8.0% 8.0% 10

Msukaligwa 7.8% 6.9% 7.8% 7.9% 13

Dr Pixley Ka Isaka Seme 7.3% 6.6% 7.7% 7.9% 14

Govan Mbeki 6.1% 5.5% 6.0% 6.1% 18

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3.2.21. ECONOMIC INDICATORS

ECONOMIC INDICATORS Trend 1996-2013

Forecast 2013-2018

Better (+) or worse (-)

than Gert Sibande

Better (+) or worse (-) than

province


GDP growth (%) 3.9% 1.9% (=) 1.9% (-) 2.2% 15

Trend Latest figure Ranking: best (1) – worst (18) 2001 2004 2009 2013

Contribution to Mpumalanga GVA (%)

3.9% 4.2% 3.7% 3.5% 7

• Expected to record 1.9% GDP growth per annum over the period 2013-2018 –higher than district but lower province – only 3.9% per annum historic growth for the period 1996-2013.

• Community services, mining & utilities should contribute the most to economic growth in the period 2013-2018. • GVA in 2013 – R8.1 billion at current prices and R3.8 billion at constant 2005 prices. • In 2013 Lekwa contributed 3.5% to Mpumalanga’s GVA – decreasing contribution since 2001.

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ECONOMIC INDICATORS

Contribution by Local Municipal Areas to Gert Sibande’s industries (GVA constant 2005 prices)

INDUSTRY Chief Albert

Luthuli Msuka-ligwa Mkhondo Dr Pixley Ka

Isaka Seme Lekwa Dipale-seng Govan Mbeki Gert Sibande

Agriculture 12.2% 14.6% 21.2% 12.9% 23.2% 7.5% 8.4% 100.0%

Mining 2.9% 11.5% 3.3% 0.3% 15.2% 0.7% 66.1% 100.0%

Manufacturing 0.5% 0.8% 1.3% 0.2% 2.3% 0.2% 94.7% 100.0%

Utilities 5.2% 9.5% 1.6% 11.7% 44.7% 7.9% 19.4% 100.0%

Construction 8.0% 7.4% 4.6% 12.1% 10.8% 2.0% 55.1% 100.0%

Trade 7.7% 20.4% 8.1% 6.1% 10.9% 5.0% 41.8% 100.0%

Transport 6.4% 28.7% 8.8% 8.1% 11.8% 1.8% 34.4% 100.0%

Finance 8.2% 24.3% 9.5% 3.7% 9.8% 1.9% 42.6% 100.0%

Community services 15.6% 21.4% 9.4% 6.3% 17.5% 3.0% 26.7% 100.0%

Total 6.1% 13.4% 5.9% 4.1% 12.8% 2.4% 55.4% 100.0%

Lekwa contributed 12.8% to the Gert Sibande economy in 2013.

Utilities contributed 44.7% and agriculture 23.2% to the relevant district industries

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ECONOMIC INDICATORS

In 2013, community services contributed 19.1% to the Lekwa economy followed by mining (25.4%) & utilities (17.0%).

Mining’s share/contribution declined and utilities, community services & finance increased

Agriculture8.1%

Mining 25.4%

Manufacturing, 4.5%

Utilities 17.0%

Construction2.5%

Trade 11.5%

Transport4.8%

Finance 7.1%

Community services19.1%

2013Agriculture

8.1%

Mining 25.4%

Manufacturing, 4.5%

Utilities 17.0%

Construction2.5%

Trade 11.5%

Transport4.8%

Finance 7.1%

Community services 19.1%

2013

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3.2.22. INDUSTRY CONTRIBUTION & GROWTH

Provincial industry contribution and growth (constant 2010 prices), 2009-2013

Industry GVA percentage share 2013

Industry average annual growth, 2009-2013

Future growth 2013-2018

Agriculture 3.0% -0.7% Medium

Mining 25.4% 2.3% Low

Manufacturing 13.3% 2.1% Medium

Utilities 5.4% 0.6% Medium

Construction 3.3% 1.3% Medium

Trade 15.0% 2.2% Medium

Transport 6.0% 1.8% Medium

Finance 12.2% 2.2% Medium

Community services 16.4% 2.6% Medium

Total/GVA 100% 2.1% Medium

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• Low = less than 2% • Medium = between 2% & 3.9% • High = 4.0 % and higher

3.2.23. TOURISM INDICATORS

TOURISM INDICATORS

Trend Latest Percentage share of

Gert Sibande

Percentage share of

Mpumalanga

Ranking: best (1) –

worst (18) 2001 2004 2009 2013

Number of tourist trips 34 378 51 697 61 900 44 957 4.9% 1.1% 16

Bed-nights 254 626 289 675 224 386 249 081 4.9% 1.1% 16

Total spent R million (current prices)

R86.4 R101.7 R134.3 R172.0 4.7% 1.0% 16

Total spent as a % of GDP (current prices)

3.0% 2.7% 2.1% 1.9% 18

• Number of tourist trips increasing since 2001 – 4.9% of Gert Sibande’s total and 1.1% per cent of the provincial total – ranked 16th

. • Total spent R172.0 million in 2013 – increasing trend since 2001 but third lowest in the province. • Total tourism spent equals only 1.9% of Lekwa’s GDP – decreasing trend since 2001 – ranked no 18.

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TOURISM INDICATORS

Value & contribution of total tourism spend per region, 2013

Region Total tourism spend (R-million) Tourism spend as % of GDP (current prices)

Gert Sibande R3 660 5.3%

Chief Albert Luthuli R372 9.2%

Msukaligwa R357 4.1%

Mkhondo R263 6.6%

Dr Pixley Ka Isaka Seme R140 5.2%

Lekwa R172 1.9%

Dipaleseng R62 4.1%

Govan Mbeki R2 294 5.9%

3.2.24. NATIONAL TREASURY ALLOCATION, MPG EXPENDITURE & SASSA GRANTS

Local municipal area National Treasury allocation MPG expenditure 2013/14

SASSA grants 2013/14

Equitable share 2013/14

Infrastructure grant 2013/14

Chief Albert Luthuli R171.5 million R88.1 million R1 084.8 million R766.0 million

Msukaligwa R109.0 million R66.1 million R750.0 million R243.6 million

Mkhondo R110.7 million R69.1 million R788.5 million R371.2 million

Dr Pixley Ka Isaka Seme R85.6 million R30.6 million R417.3 million R131.6 million

Lekwa R81.4 million R43.5 million R539.5 million R167.8 million

Dipaleseng R46.1 million R20.6 million R148.3 million R81.9 million

Govan Mbeki R191.1 million R87.2 million R1 063.7 million R273.3 million

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3.2.25. CRITICAL QUESTIONS – RESPONSE FROM MUNICIPALITY

1. INVESTMENT AND BUSINESS Responses

Poor Average Good

1.1 What is the perception by the public of the Municipality?

1.2 Investment-friendly environment in your municipal area?

1.3 What is the status of your investment strategy?

1.4 How is the relationship between Business & the Municipality?

1.5 Trusts between Business & the Municipality?

1.6 Municipality part of a Business Forum?

1.7 Economic, financial & political stability in the municipal area?

1.8 Performing according to the economic potential of your area?

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2. PLANNING, IDP & BUDGET Responses

Poor Average Good

2.1 What is the status of cooperation/collaboration between the IDP Manager, CFO & MM?

2.2 How does your budget respond to your IDP?

2.3 How does your budget respond to the socio-economic challenges of your municipal area?

2.4 How does your budget respond to the triple challenges?

2.5 What is the status of cooperation/collaboration with Provincial Departments?

2.6 Spatial planning and development and in line with municipal SDF?

2.7 Long term & strategic plans at/in the Municipality?

2.8 What is the status of youth development strategies and plans at/in the Municipality?

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3. LOCAL ECONOMIC DEVELOPMENT Responses

Poor Average Good

3.1 Functional (operational & viable) LED Unit/Manager?

3.2 What is the status of cooperation/collaboration between the LED Manager, MM and Mayor?

3.3 What is the status of the LED Forum?

3.4 What is the status of the development of a LED strategy?

3.5 LED strategy incorporates economic interventions from Provincial Departments?

3.6 What is the status of the implementation of the LED strategy?

3.7 Developing industries in the municipal area to increase economic growth and with a high labour absorption?

3.8 What is the status of Monitoring & Evaluation (M & E) with regard to LED in the Municipality?

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3.2.26. CHALLENGES & RECOMMENDATIONS

Challenge Recommendation

High proportion of population aged 0-34 years (youth) Resources channelled to youth development – importance of skills development & creation of jobs

Importance of a job creation strategy targeting youth, women & people with disabilities

High HIV prevalence rate Importance of interventions by DoH to decrease the high HIV prevalence rate

Concern about high percentage of informal dwellings Faster roll-out of basic services and municipal infrastructure

Relatively high inequality Importance of poverty strategy – emphasis on job creation - impact positively on reduction of poverty & inequality

Relatively low economic growth Importance of attracting new businesses through an investment strategy & active Business/LED forum

High dependence/reliance on a few industries Identification of key industries/sectors to drive the economy sustainably into the future – role of tourism, manufacturing, trade, agriculture, mining etc.

Reduce unemployment, poverty and inequality (MEGDP & NDP) Effective and efficient government spending making an impact on the triple challenges

Budget must be in line with and respond to IDP & socio-economic challenges Municipality must work closely with COGTA, Finance and other role-players

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3.2. WARD BASED ASSESSMENT IN TERMS COMMUNITY ISSUES The IDP/Budget consultation and public participation process only began in November 2014 and were completed in the very same November 2014, the Executive Mayor, MMC’s for different portfolios, together with the respective Ward Councillors concerned, PR Councillors who were available and Executive Managers as well as Divisional Managers visited all the 15 wards with the aim of emphasizing on the Government’s programmes, the importance of meeting the Millennium Targets, improvement in service delivery and ensuring better life for all residents within Lekwa Local Municipality. Community members who attended the consultations highlighted the following development and infrastructural challenges confronting them per ward:

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IDP/BUDGET REVIEW COMMUNITY CONSULTATION AS PER WARD BASED ASSESSMENT FROM THE 09/11/2014 TO THE 03/12/2014 FOR FINANCIAL YEAR 2015/2016

ISSUES RAISED

PROGRESS MADE / ACHIEVEMENT IF NOT ACHIEVED (REASONS)

CORRECTIVE MEASURE

1 WARD 1 CLLR. MS KHUMALO-RADEBE

Access road to Razmattaz Achieved, Blading of roads completed in Mngomezulu, Sepingo, Morati, Thusi , Sigegede, Qwugga and Robbersdrift to Razmatas.

High-mast lights in Seboloka and Sebiloane streets;

Not Achieved, One high mast light installed and functional at Sebiloane High mast in Seboloka street, to be attended to during future grant funding

Future grants to be utilized in installation of high mast in Seboloka street.

Paving of Gwembe street Not Achieved,

Reprioritisation process of basic services

Keep it in the ward priority list

Naming and renaming of streets;

Not Achieved Street names not approved

Renaming process is continuous

Construction of storm-water structures

Not Achieved, due to the reprioritisation process of basic services such as water, sanitation and electricity.,


Keep it in the ward priority list

RDP Houses 41 RDP Units Built

.

Title deeds Not Achieved Await the extension of scope for the newly appointed conveyancer

Scope to be extended to the Conveyancer

Gravelling of roads Achieved, I km bladed at Isipingo

Toilets and water in Extension 2

Not Achieved Previous Resolution on provision of basic

Council Resolution A-121-17/07/2014

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municipal services in informal settlement.

NUSP

Community halls Not Achieved Reprioritisation process of basic services

Keep it in the List

Indigent 225

Outstanding Debts R18 658 753

Cross-cutting projects Standerton Waste Water Treatment Works has been completed for R16.8 million

Replacement of AC pipes with uPVC pipes in Lekwa LM for R6.252 Million has been completed

Construction and upgrade of storm water network phase 3 in Ward 2,3 & 4 is completed for R1.2 million

Water conservation and Demand management

Construction of a 10 Mega litre Reservoir supplying (Ward 1,5,7,15)

Refurbishment of Waste Water Treatment Works

END OF WARD ONE

2 WARD TWO (2) CLLR.LBR DLAMINI (SPEAKER)

Paving of roads leading to school such Thobelani and Jandrell

Achieved

Construction of storm-water structures

Achieved in Sivunjatshe, Dladla and Sebiloane street storm water structures constructed

Upgrading of electricity substations

Not Achieved

Mini sub to be installed by January 2015

Receiving sub to be upgraded by the end of May 2015

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Free application of title deeds

Achieved, 219 Title deeds delivered

Naming of streets Achieved, Some streets has been successfully renamed and others were not approved e.g. Sibongile Radebe, Doctor Lephoto, December Mphuthi and Sobukwe were all successful

Renaming process is continuous

Construction of speed humps

Achieved, Two (2) Speed humps were constructed Gatsheni and Ndlovu Streets

Provision of Grazing fields Not Achieved, a study to be conducted a study to be conducted

RDP Houses 130 RDP Units built

.

Recreational facilities (Swimming pool)

Not Achieved, Swimming Pool- Project still not completed due to required additional funds

Keep it in the List

Installation of High-mast lights

Achieved, 1 at Lindelanga school

Indigent 245

Debt Outstanding R17 251 748






END OF WARD TWO

3 WARD THREE (3) CLLR. M M NTULI

Upgrading of the Old Achieved

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Standerkop Reservoir

Gravelling of streets at Mahala Park

Achieved, 1.4 km gravelled at Mahala Park

Paving of roads Achieved, Wolmarans Street paved

RDP Houses Achieved, 542 Units RDP Houses built

High masts lights next to the Cemetery and Shovovo

Achieved, 2 High- high lights masts were installed but to cover greater community. Installed at 6944/25 and 3736 Ext.1

Sports, Recreational facilities and Multipurpose Centre

Achieved, sporting Facilities (Sakhile Netball Courts, Mahala Park Netball, Basketball, Sakhiile Swimming Pool and Tennis Court completed for R3.3 million

Title deeds Achieved, 279 Title Deeds delivered

Construction and upgrade of storm water network phase 3

Achieved, construction and upgrade of storm water network phase 3 in Ward 2,3 & 4 is completed for R1.2 million

Indigents 152

Outstanding Debts R84 38049



Completion of the Rising Main Line has been completed for R2.25 million



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END OF WARD THREE

4 WARD FOUR (4) CLLR. L VAN RENSBURG

Gravelling of roads; Not Achieved, due to the reprioritisation process of basic services such as water, sanitation and electricity.

Keep it in the ward list

Storm-water drainage in Azalea, Kosmos Street;

Not Achieved, due to the reprioritisation process of basic services such as water, sanitation and electricity.


Gravelling and paving of roads in the new established area (Stan-west next to Osman Raydan);

Not Achieved, but we have bladed the street Keep it in the ward list

Streetlights to be converted into High mast lights

Not Achieved, New high-mast installed at 6947/15 Maintenance and repair is done on streetlights with installing cost effective LED fittings.


Building of RDP houses. 174 RDP have been built

Construction of sidewalks Not Achieved Reprioritisation process of basic services


Indigent 40

Debt Outstanding R18 248 129

Cross-cutting projects Standerton Waste Water Treatment Works has been completed

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for R16.8 million






END OF WARD FOUR

5 WARD FOUR (5) CLLR. JB MOTHOPENG

Paving of Mfuphi ,Ngubeni and Selepe street

Not Achieved, due to the reprioritisation process of basic services such as water, sanitation and electricity.

Need an obsolete road maintenance plant for hire

Formalization of Phalama and Mandela Camp informal nature

Not Achieved, municipality is participating in a NUSP PROGRAMME where councillors are active participants in terms of Council resolution:

Previous Resolution on provision of basic municipal services in informal settlement.

Council Resolution A-121-17/07/2014 NUSP

Electricity and Toilets in Mandela Camp

Not Achieved, municipality is participating in a NUSP PROGRAMME where councillors are active participants in terms of Council resolution:

Re-gravelling of Streets in Phalama

Achieved, Phalama has been Bladed

Youth development initiative

Achieved, work integrated Learning programme, LED initiatives Bursary Programme, Cooperatives and SMME’s Learner ships programme: Unemployed Youth

Indigent 357

Debts Outstanding R28 131,928

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END OF WARD FIVE

6 WARD 6 CLLR.ENK SHABANGU

Request for RDP Houses

87 Stand-alone RDP houses built 34 CRU Built Hostel project complete

Paving ring road Ext 1 Not Achieved, paving of roads for now has been stalled due to the reprioritisation process of basic services such as water, sanitation and electricity.

Keep it in ward priority list

Waste Management Project

Not Achieved Not in the LED Strategy To be included in LED project list

Available land for live stock

Not Achieved Study to be conducted Keep it in ward priority list

Paving off all roads that goes through churches and schools

Not Achieved Reprioritisation process of basic services


Storm water drainage at Killarney

Not achieved Keep it in ward priority list

Fencing for Madi School Not achieved, referred to the Department of Education Not a municipal function, but a DoE

Sector department to be invited to IDP Meeting

Hostel project to be completed

Achieved, Phase 2 of the Sakhile Hostels is completed. Occupation of the Community Residential Units The Council established a

. .

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Select Adhoc Committee to look into matter of the institutional arrangements as well as the method of occupation of these units.

Paving of sidewalks at Palmer, Mncube, and Hlongwane Street

Not Achieved, sidewalks have been paved, Palmer Street and Hlongwane drive; Mncube drive is still outstanding

Palmer Street and Hlongwane drive; Mncube drive is still outstanding


High-mast lights at Mtshali Street

Achieved, high-mast light in Mtshali Street has been installed;

Sport and Recreational facilities next to Sakhile Hall and parking bays

Achieved, Sport and Recreational facilities next to Sakhile Hall and parking bays were successfully constructed and completed.

Keep it the Ward

Indigent 201

Debt outstanding R18 980 400







END OF WARD SIX

7 WARD 7 CLLR.JP MASUKU

Building of RDP houses including Ext 7

Achieved, 66 RDP Houses built and 100 more units to be built

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Available site for training Centre of senior citizen at Old Khunjuliwe

Not achieved Building demolished Keep it in the ward priority list

Creation of sports facilities

Not Achieved,


Engage Sector department of Sport, Arts & Culture

Requesting Free title deed

Achieved, Only 55 title deeds received for ward 7

Term of the conveyancer expired

New scope of a new Conveyancer to be agreed upon

Building of a youth Centre with library

Not Achieved, Library is not the municipal function but it has been referred to the relevant sector department Art, Sports and Culture Department

Sports and culture Dept. to be invited to IDP meeting

Creation of a passage to buffer zones

Not Achieved,

Owner has been approached and did not co-operated

Formal legal proceedings will commence soon

Highlight mast 2 High-mast lights were successfully installed at 714 Mahala Park and 6912 Ext.7

Other Projects Standerton Waste Water Treatment Works has been completed for R16.8 million




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R23 SANRAL project



Indigents 39


END OF WARD SEVEN

8 WARD 8 CLLR. VAN DER WATH

Closing of open manholes;

Achieved, there are no more open manhole

Security on playground (installation of Palisades);

Not Achieved Reprioritisation process of basic services

Keep in the ward list

Closing of escape routes (especially Secunda road);

Not Achieved Public works to be engaged in order to identify the culprit (Grader driver)

Request help from SANRAL with regards to concrete slaps.

Landfill side that has become hazardous to the community;

Achieved, New cell is completed and the Old cell will be rehabilitated

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No proper notice issued to residence before electricity cuts-off;

Achieved, it is provided for in the monthly consumer accounts

Construction of a English medium school

Achieved, Khunjuliwe High School built in Ward 9 which is relatively located next to ward 8

Indigent 8







END OF WARD EIGHT

9 WARD 9 CLLR MR TSHABALALA

Water in Rural Areas

Council has provided 6 Boreholes, 70 VIP

Electricity and High mast lights

Achieved, Electricity connections to 7 farmworker houses (JWS-Klippoortjie) Still 22 farmworker houses to be done under the DoE funding project.

Employment Opportunities: Bokoro Bricks project

Not achieved, DEDET matter DEDET matter Sector department to be invited to IDP Meeting

Permanent Clinic in Ward 9

Not achieved, Sector matter Sector matter Sector department to be invited to IDP Meeting

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Gravelling of Roads in Rural Areas

Not achieved, Public works matter Public works matter Sector department to be invited to IDP Meeting

RDP Houses in Rural Areas

Achieved, Standerton Ext 8 RDP Houses allocated 500

Land for RDP Houses in Rural ward

Not achieved, DARDLA matter Sector department to be invited to IDP Meeting

Mobile Clinics to adhere to visiting schedule

Not achieved, matter has been referred to the health department to attend to

Health department matter


VIP toilets 70 VIP toilets has been provided

Grazing land Not achieved, Sector matter Study to be conducted to determine the demand


Cross-cutting projects in Rural Wards

Installation of sanitation services in rural(farm) areas for R3 million

Installation of boreholes in rural(farm) areas of Lekwa LM for R3 million

R23 SANRAL project

Wolvenfontein 1 windmill

Bierman 1 windmill

Holmendene 1 windmill

Ellme tree 1 windmill

Uys farm 1 windmill

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END OF WARD NINE

10 WARD 10 CLLR. PT SCHNETLER

Infrastructure maintenance for water, sanitation, electricity and municipal roads

Achieved, Water, sanitation -Refurbishment of Water and Wastewater treatment plant completed Electricity -Upgrading CA –Substation – Contractor appointed Sanitation -Refurbishment of Waste Water Treatment Works

Improving the capacity of sewer treatment plant or works

Achieved, refurbishment Water and Wastewater treatment plant completed Phase 2: Consultant has been appointed

Bridging of electricity and non-functionality of Street lights

Not achieved, Appointment of a contractor to install smart meters

Smart meters contractor High masts lights Maintain street lights

Roads decaying Walter Sisulu Mandela drive and Borman and overall potholes in town

Achieved, roads: Walter Sisulu drive Beyers Naude,Bauman, Mbonani Mayisela, Krogh,Berg, Van Backstroom, Schwickard ,Lang and Van Veen Streets has been completed

High need for more medical practitioners in Standerton Hospital

Not achieved. It’s a sector department matter Sector department matter

Sector dept. to be invited to the IDP Consultation

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Other Projects Standerton Waste Water Treatment Works has been completed for R16.8 million




Installation of raw water turbine pumping units for R1.9 million completed



Indigents 10

Debts outstanding R547 763

END OF WARD TEN

11 WARD 11 CLLR. AS NGWENYA

Highlights mast

Achieved 4 High mast lights installed

Building of a clinic

Achieved, Clinic is 100% complete

Building of a community hall

Achieved, Construction of the community hall is complete.

Building of a police station or mobile SAPS at the taxi rank

Not achieved It’s a Sector department function


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Building of a bridge on the Santa Road

Achieved, bridge on the Santa Road completed

Building of a Primary and High School

Achieved, Shukuma primary has been built with all the related sports facilities Site for High school is provided with ERF No:50141

Sports facilities Achieved, Shukuma primary houses most of the sport facilities

Upgrading of receiving subs-station feeding Rooikoppen

Not achieved Upgrading of receiving subs-station feeding Rooikoppen adjudication underway

Finalize the procurement process

Paving of roads Achieved, Bus/Taxi routes,1.1 km has been paved

Construction of speed humps

Achieved, (5) speed humps have been installed on the Bus/Taxi Routes

Title deeds Achieved,1200 title deeds to be delivered

Water Conservation and Demand management

To benefit all the urban wards. Water Conservation and Demand management Rectification of sewer network in Ward 11

Indigent 375

Debts outstanding R22 264226





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END OF WARD ELEVEN

12 WARD 12 CLLR. SS MOSIA

Storm-water drainage in rural areas;

Not achieved

Gravelling of roads in rural areas;

Not Achieved, Public Works matter Public Works matter Sector dept. to be invited to the IDP Consultation

RDP Houses in Bloukop

Not Achieved, DHS to enter into MOU with the farmers. DHS to enter into MOU with the farmers

High-mast Light; Achieved, High mast lights were installed but not in all areas of the RDP section

Paving of roads RDP, Ext1;

Not Achieved, due to prioritization of water, sanitation and electricity Due to prioritization of water, sanitation and electricity

Re-opening of the filling station – Thuthukani;

Not achieved, It’s a private property that belongs to Eskom, will depend on the handing over of Thuthukani to the municipality and the municipality has no authoritY

Selling of municipal sites (Ward 12);

Not achieved The municipality to advertise sites for sale via section 14 of the

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MFMA and also awaiting land audit for entire Municipality

Opening of cemeteries Not achieved, Municipality to facilitate the opening of the cemetery once the handing over of Thuthukani to the municipality and the municipality has been done as this has costs implication.

Electricity in all rural areas

Not achieved, Municipality has no authority to electrify all the rural areas as most of these farms belong under Eskom.

Eskom to be invited to the IDP Consultation

LED projects LED Forum as the LED Unit has just began to function

Community Hall There is a Multi-purpose hall in Thuthukani that belong to Eskom for now, but in future once the handing over of Thuthukani to the municipality and the municipality has been done it will belong to the municipality

Cross-cutting projects in rural wards

Installation of High mast lights in Lekwa for R2 Million is completed 1,2,3,4,5,6,7,10,11,12,14

Installation of sanitation services in rural(farm) areas for R3 Million in 9,12 & 13

Installation of boreholes in rural(farm) areas of Lekwa LM for R3 Million in 9,12 & 13

END OF WARD 12

13 WARD 13 CLLR. NZE SITSHONI

Farm owner donated land and municipality failed to build houses (Kroomdraai)

Not achieved DoHS has not entered into Service level agreement with the farm owners


Electrification of farms

Electrify Households as follows: 3 HH- V8, 8HH -V22, 5HH- V38 Houses M Farmers or Occupants refusal to move

Apply to INEP for additional houses to be electrified

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Farm purchased by Government and unknown person allocated by Department of Land Affairs (Welmoed farm)

Not achieved, Nothing was done on the municipal side DARLDLA function Sector dept. to be invited to the IDP Consultation

Transnet Houses to be re-allocated to members of community

Not achieved, It’s a private property and the municipality has no authority

Transnet to be invited to the IDP Consultation

Scarcity of a Mobile clinic

Not achieved Not a municipal function and is referred to Department of Health

DoH to be invited to the IDP Consultation

Road access (road to be gravelled)

Not achieved Due to reprioritization of water, sanitation and electricity

Request jojo tank (Brakfontein)

Achieved

Provision of resources for Crèche

Not achieved matter has been referred to the Department of education

DoE to be invited to the IDP Consultation

Legalization of security of ownership, Erzak

Not Achieved It’s a private property Fast track the negotiations between Early-bird and employees

Municipal Satellite Office

Not achieved municipality does not render any services that need pay for

Stands for early-bird people, farms

Sites are available in Ext 8 Early bird employees have been encouraged to register for Ext 8

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Upgrading of Electricity sub-station in early-bird farm

It’s a private property that belongs to Early bird farm and the municipality has no authority

Highl mast light (kwa-Ben and Tonker Farm

Not Achieved

Indigent ZERO


Boreholes Ebenezer Farm 1 windmill installed Darling Farm 1 windmill Emajokobeni 1 windmill Kwakruks 1 windmill KwaManqindi 1 handpump Kwambube 1 windmill

Sanitation facilities 70 sanitation toilets constructed

END OF WARD 13

14 WARD 14 CLLR. MG MAKHANYE

Municipal sites for residential, business and church be sub-divided and allocated

The municipality to advertise sites for sale via section 14 of the MFMA and also awaiting land audit for entire Municipality

No Policy No Land Audit

Develop a Policy Conduct Land Audit

Construction of storm water

Achieved Construction of storm water in Morgenzon is at 100% complete.

N/A

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Construction of a new community hall

Not achieved, due to the reprioritisation process of basic services such as water, sanitation and electricity.

Due to the reprioritisation process of basic services such as water, sanitation and electricity

Provide maintenance

Extension and renovation of a clinic with 24 hours doctors service

Not Achieved, Clinic under construction in Morgenzon by DH

Clinic under construction in Morgenzon by DH

Ambulance has been provided for 24hrs service

Paving of a ring-road Achieved ,Completed in 2012 financial year

Achieved Study to be conducted on how the Road could be lowered in order to avert flooding

Building of school for the disabled

Not Achieved A site has been allocated by Municipality and New Denmark has committed to build a school/Centre for the disabled: 490 Ext 3

Awaiting for a response from New Denmark

Graveling and paving of roads

Not Achieved Commence 1st of March 2015 for Gravelling of 9 KM of roads in Morgenzon

1st March 2015

Ext 1 road to have access from entrance to exit

Not Achieved Not permissible in terms of the layout plan, currently there is an informal exit poi

Refurbishment of a Comb court for Basketball and netball

Achieved, Refurbishment of a Comb court for Basketball and netball completed

Sports and recreational (PARKS) facilities in

Achieved, sport and recreational facilities completed.

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Sivukile

Cemeteries to be fenced and toilets to be erected

Not achieved, due to financial constraints Due to financial constraints

Keep in Ward list of issues

Grazing Land for livestock Achieved, two (2) farms available for grazing purposes. Study to be conducted to ascertain the number livestock and extent of the farms available for use.

Available land for agricultural and resources

Not Achieved; The DHS has committed to implement the Agri-village project on behalf of the Municipality

Monthly follow-ups will be made and other projects

Indigents 364

Outstanding debts R39329 733

END OF WARD FOURTEEN

15 WARD 15 CLLR. N TSHABALALA

The Multi-purpose community hall

Achieved, Construction of Multi-Purpose Community Hall for Sakhile Ward 15 at R8 Million is completed

3.5km of all roads to be gravelled;

Achieved, 3.5km of all roads has been completed

Request for the installation of at least two

Achieved, 2 high mast lights installed at 6031 and 5125 Ext. 6

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High-mast lights

Paving at Vodacom Street Not achieved Due to the reprioritisation process of basic services such as water, sanitation and electricity

Keep it in the Ward list

Request for RDP Houses Achieved, more still have to be built depending on DoHS allocation

V-drain /Storm-water in all Streets

Achieved, 120 meters storm-water network phase 1-2_ the project is completed, benefit both ward 15 & 7.

Request for speed humps Achieved, Four (4) speed humps constructed on the Paved Roads

Building of a youth Centre with library

Not achieved Due to prioritization of water, sanitation and electricity etc


Incorrect billing systems for rates and taxes accounts

Not achieved it is provided for in the monthly consumer accounts


Paving of the main road from Judy’s place up to the end.

Not Achieved due to prioritization of water, sanitation and electricity etc.

Leakages of water meters Not achieved 260 meters fixed,340 outstanding due to the 76 meters stolen and water supply disruptions and limited resources

New evaluation roll Water demand management

Sport Facilities (Soccer-field)

Not achieved, Ward is able to share with ward 3 for Netball, Basketball, Tennis and Soccer facilities and also share with other neighbouring wards

Due to the reprioritisation process

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of basic services such as water, sanitation and electricity

Indigents 80


Cross- cutting projects Standerton Waste Water Treatment Works has been completed for R16.8 million







END OF WARD FIFTEEN

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4. CHAPTER 4: PERFOMANCE MANAGEMENT SYSTEM

4.1. INTRODUCTION The main objective of the IDP is being for the Municipality to address service delivery issues and in particular to address and eradicate the inequalities of the past, focusing primarily on previously disadvantaged areas.

The key objective of the Municipality’s IDP is therefore to create a developmental state and to realise a developmental local government where the Municipality actively intervenes in raising the quality of life of its citizens through creating a sustainable environment and ensuring the deployment of resources to realize the objectives it has set for itself.

The objectives to be set are adapted from the MSA which requires that the Performance Management System as adopted by the Municipality, represent the cycle and processes of performance planning, monitoring, measurement, review, reporting and improvement. The objective of institutionalising a performance management system beyond legislative compliance requirements is to:

• Facilitate increased accountability • Facilitate learning and improvement • Provide early warning signals • Facilitate decision-making processes

4.2 POLICY AND LEGISLATIVE FRAMEWORK The Performance Management System is located within a legislative and policy framework and is influenced by the following:

• The White Paper on Local Government (1998) • The Municipal Systems Act (2000) • The Municipal Planning and Performance Management Regulations (2001)

4.2.1. The White Paper on Local Government 1988

The White Paper on Local Government (1998) nationally introduced performance management in local government as a tool towards developmental local government. The White Paper indicates that involving communities in developing municipal key performance indicators increases the accountability of the municipality to its citizens. Some communities may prioritize the amount of time it takes a municipality to answer a query, others will prioritize the cleanliness of an area or the provision of water to a certain number of households. Whatever the priorities, by involving communities in setting key performance indicators and reporting back to communities on performance, accountability is increased and public trust in the system of local government can be enhanced.

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4.2.2. BATHO PELE (1998)

The word Batho Pele is a Sotho word, which means people first. The White Paper on transforming public service delivery put forward eight (8) principles, which has been extended to 12, for good public service whose priority is putting people first, i.e. Batho Pele. The Batho Pele principles are:

• Consultation • Service standards • Access • Courtesy • Access • Information • Openness and transparency • Redress • Value for Money • Encourage innovation and rewarding excellence • Service delivery impact • Leadership and strategic direction

4.2.3. THE MUNICIPAL SYSTEMS ACT (2000)

This Act requires of all municipalities to:

• Develop a performance management system • Set targets, monitor and review performance based on indicators linked to their

Integrated Development Plan • Publish an annual report on performance for 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 such reports. • Involve the community in setting indicators and targets and reviewing municipal

performance. • Have their annual report on performance audited by the Auditor-General.

4.2.4. MUNICIPAL PLANNING AND PERFORMANCE MANAGEMENT REGULATIONS (2001) The Municipal Planning and Performance Regulations (2001) is a set of regulations which clarifies the process of how the Performance Management System and Integrated Development Plan processes should be conducted and integrated. It provides that a municipality performance management system must entail a framework that describes and represents how the municipality’s cycle and processes of performance planning, monitoring, measurement, review, reporting and improvement will be conducted, organised and managed, including the roles of different stakeholders.

4.3. PRINCIPLES GOVERNING THE PERFORMANCE MANAGEMENT SYSTEM

In having developed a performance management system, the Municipality has been guided by the following principles:

a) Both development and implementation of the system must be driven by Council and the executive management

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b) The system must be owned by all relevant stakeholders within the municipality and be supported

c) Communication must occur at all levels on an on-going basis d) The value of PMS must be understood by all role-players and stakeholders e) The system must place the community at the centre of local government processes f) The system must be developmental and not punitive g) The system must be developed and implemented within the available capacity and

resources of the municipality h) The system should align to other municipal initiatives, systems and processes i) The system must provide learning and growth opportunities through coaching and

review processes. PMS must be implemented in such a manner that it:

I. Is developmental and not punitive in nature as employees will be provided with career opportunities and be allowed space to be creative and innovative in performing and improving their work;

II. Provides a clear and detailed framework for: • reaching agreement on performance contracts • clear KPIs, targets and standards that are agreed upon • a balance between organisational needs and employee rights

III. Allows for joint responsibility and accountability based on mutual trust and respect IV. Is cost-effective and practical while enhancing improvement on quality V. Is applied consistently and documents and records both formal and informal feedback

VI. Is applied equitably and fairly VII. Allows for honesty and transparency in its application

VIII. Provides clear linkages between performance, recognition and reward IX. Provides a clear guide on dealing with poor or non-performance X. Focuses on critical work activities

4.4. LEKWA’S PERFORMANCE MANAGEMENT SYSTEM

Lekwa’s Performance Management System has a detailed process plan in respect of specific responsibilities and time frames as determined in line with the Regulations. Lekwa’s process of managing performance will involve the following core basic components of which each of the processes can be explained as follows:

Performance Planning ensures that the strategic direction of the Municipality more explicitly informs and aligns the IDP with all planning activities and resource decisions. This is the stage where Key Performance Areas and Key Performance Indicators are designed to address the IDP objectives, national policy and targets are set.

Performance Measuring and Monitoring is an ongoing process to determine whether performance targets have been met, exceeded or not met. Projections can also be made during the year as to whether the final target and future targets will be met. It occurs during key points in a process – for example, on a quarterly, midyear and annual basis.

Performance Evaluation and Review analyses why there is under-performance or what the factors were that allowed good performance in a particular area. Where targets have not been met, the reasons for this must be examined and corrective action recommended. Evidence to support the status is also reviewed at this stage. An additional component is the review of the indicators to determine if they are feasible and are measuring the key areas appropriately.

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Performance Reporting entails regular reporting to management, the performance audit committee, council and the public.

Performance Auditing and Improvement is a key element of the monitoring and evaluation process. This involves verifying that the measurement mechanisms are accurate and that proper procedures are followed to evaluate and improve performance. According to section 45, of the Systems Act, results of performance measurement must be audited quarterly as part of the Municipality’s internal auditing process and annually by the Auditor-General. The Municipality have therefore established frameworks and structures to evaluate the effectiveness of the Municipality’s internal performance measurement control systems. Areas of weak performance identified at year-end must be addressed during the following year’s planning phase.

The following diagram outlines the process flow in respect of how planning, monitoring, measurement, review, reporting, auditing and improvement is conducted, organised and managed.

The Performance Management Cycle

PERFORMANCE MANAGEMENT

CYCLE

Performance Planning

(March-June)

Performance Monitoring and Measurement

(Monthly / Quarterly)

Performance Review

(Quarterly & Annually)

Performance Reporting (Monthly / Quarterly / Midyear / Annually)

Perfomance auditing and

improvement (Quarterly /Annually)

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4.5. STAKEHOLDERS AND THE ROLE THEY PLAY IN PERFORMANCE MANAGEMENT SYSTEM These stakeholders are the responsible bodies that will see to the driving of the performance management processes within the Municipality:

COUNCIL MAYORAL COMMITTEE PORTFOLIO

HEADS

MUNICIPAL MANAGER

& HEADS OF

DEPARTMENT

AUDIT COMMITTEE

CITIZENS AND COMMUNITIES

• Development of a long term vision

• Develop strategies

to achieve Municipality’s Vision

• Identify priorities

• Adopt indicators

and set targets

• Manage the development of the IDP

• Approve & adopt

indicators • and set targets

• Communicate the

plan to other stakeholders

• Assist the Mayoral Committee in providing strategic direction

• Developing

strategies • and policies for

the organization

• Manage the development of the IDP

• Ensure that the

plan is integrated and implemented

• Provide objective, independent advice to improve oversight, governance and help to mitigate institutional risks.

• Be consulted on needs Participate in the development of the long term vision for the area

• Influence the

identification of Priorities

• Influence the

choice of indicators and setting of targets

4.6. PUBLIC PARTICIPATION

Community participation in terms of Performance Management System is a requirement by law. The Municipality uses existing forums to enhance community participation in monitoring, measurement and review of the Municipality’s performance in relation to the key performance indicators and performance targets as set by the Municipality. Such forums will include representatives from ward committees, and is representative of the composition of the local community of Lekwa.

4.7. AUDITING OF PERFORMANCE

Lekwa’s auditing of performance should happen in compliance with Section 14 of the Municipal Planning and Performance Management Regulations (2001) which inter alia states as follows:

(1) (a) A municipality must develop and implement mechanisms, systems, and processes for auditing the results of performance measurements as part of its internal auditing processes. (b) Any auditing in terms of paragraph (a) must include assessments of the following:

I. The functionality of the municipality’s performance management system; II. Whether the municipality’s performance management system complies with the

Act; and III. The extent to which the municipality’s performance measurements are reliable in

measuring performance of municipalities on indicators referred to in regulation 9 and 10.

(c)A municipality’s internal auditors must – (i) On a continuous basis audit the performance measurements of the

municipality; and

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(ii) Submit quarterly reports on their audits to the Municipal Manager and the Performance Audit Committee referred to in sub- regulation (2).

(2) (a) A municipality must annually appoint and budget for a performance audit committee/audit committee consisting of at least three members, the majority of which may not be involved in the municipality as a councillor or employee. (b) A performance audit committee appointed in terms of paragraph (a) must include at

least one person who has expertise in performance management.

(3) A performance audit committee must meet at least twice during the financial year of the municipality concerned.

(4) A performance audit committee must – (i) Review the quarterly reports submitted to it in terms of sub-regulation (1) (c)(ii); (ii) Review the municipality’s performance management system and make

recommendation in this regard to the council of that municipality; and (iii) At least twice during a financial year submit an audit report to the municipality

concerned. INTERNAL AUDIT

The Internal audit unit is accountable to the audit committee and is required to maintain open and effective communication with the audit committee as well as to develop a flexible annual audit plan using a risk based methodology, addressing any weaknesses in risks or controls, including performance management as identified.

Internal audit will submit to the Audit Committee reports in respect of performance management their review and comment:

Compliance with statutory requirements and performance management best practices and standards;

Alignment of the Integrated Development Plan, the Budget, Service Delivery and Budget Implementation Plan and performance agreements;

Relevance of indicators to ensure they are measureable and relate to services performed by the municipality

Compliance with in-year reporting requirements;

Quarterly performance reports submitted by internal audit;

Municipality’s annual financial statements and timely submission to the Auditor-General by 31 August, each year;

Municipality’s annual reports within the stipulated timeframes;

Municipality's performance management system and make recommendations for its improvement to focus on economy, efficiency, effectiveness and impact in so far as the key performance targets set by the Municipality are concerned.

Submit an audit report to the Council at least twice during the financial year.

Internal audit will strengthen its auditing on reported performance against predetermined objectives by doing an evaluation against the overall criteria of compliance, usefulness and reliability.

The following briefly outlines what must be considered when reported performance against predetermined objectives is being audited:

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Compliance with laws, regulations and regulatory requirements

Existence - Objectives, indicators and targets must be predetermined and performance

information must be reported against them

Timeliness - Performance information must be reported within stipulated timeframes on a

quarterly, midyear and annual basis

Usefulness of performance information

Presentation - Performance against predetermined objectives is reported using the relevant

principles from the National Treasury guidelines

Measurability - Indicators are well defined and verifiable, and targets are specific, measurable and

time bound, as required by the National Treasury Framework for managing programme performance information.

Relevance - The indicators/measures relate logically and directly to an aspect of the institution's

mandate and the realisation of strategic goals and objectives, as required by the National Treasury FMPPI

Consistency - Objectives, indicators and targets are consistent between planning and reporting

documents as required by the National Treasury regulations

Reliability of performance reporting

Validity - Reported performance has occurred and relates to the institution

Accuracy - Amounts, numbers and other data relating to reported performance have been

recorded and reported correctly.

Completeness - All actual performance that should have been recorded has been included in the

reported performance information.

4.8. KEY PERFORMANCE INDICATORS (KPI’S)

As highlighted in the 2013/2014 Audit Report that KPIs including input, output and outcome indicators in respect of each of the development priorities were not set in the IDP as required by section 41(1) (a) of the MSA and regulations (1) and (9) (1) (a) of the Municipal Planning and Performance Management Regulations of 2001, the Municipality will set Key Performance Indicators (KPIs) including input, output and outcome indicators in respect of each of the development priorities and objectives as set out in its Integrated Development Plan.

These KPI’s serve as a yardstick for measuring performance, including outcomes and impact, with regard to the Municipality’s development priorities and objectives as set out in the Integrated Development Plan. Such indicators must be made known internally and to the general public.

Even the best performance indicator information is of limited value if it is not used to identify service delivery and performance gaps, to set targets and to work towards better results. Determining a set of appropriate indicators depends on the nature of the institution's mandate and setting clear targets to achieve such mandates.

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Performance standards, indicators and targets should be specified prior to the beginning of a service cycle, which may be a strategic planning period or a financial year. This is so that the Municipality will know what it is responsible for, and can be held accountable at the end of the cycle. While standards are generally "timeless", indicators and targets need to be set in relation to a specific period. The indicators for outcomes tend to span multi-year periods, while indicators for inputs and outputs may cover either quarterly or annual periods.

An institution should use standards and targets throughout the organisation, as part of its internal management plans and individual performance management system. A useful set of criteria for selecting performance targets is to apply the "SMART" principle for indicators to be:

• Specific: the nature and the required level of performance can be clearly identified

• Measurable: the required performance can be measured

• Achievable: the target is realistic given existing capacity

• Relevant: the required performance is linked to the achievement of a goal

• Time-bound: the time period or deadline for delivery is specified.

A good performance Indicator should also be:

Reliable: The Indicator should be accurate enough for its intended use and respond to changes in the level of performance.

Well-defined: The indicator needs to have a clear, unambiguous definition so that data will be collected consistently, and be easy to understand and use.

Verifiable: It must be possible to validate the processes and systems that produce the indicator.

Cost effective: The usefulness of the indicator must justify the cost of collecting the data.

Appropriate: The indicator must avoid unintended consequences and encourage service delivery improvements, and not give managers incentives to carry out activities simply to meet a particular target.

Relevant: The indicator must relate logically and directly to an aspect of the institution’s mandate, and the realisation of strategic goals and objectives

4.9. THE GENERAL KEY PERFORMANCE INDICATORS

Lekwa KPIs include the general key performance indicators as prescribed in terms of Municipal Systems Act, 2000. The following are the National Key Performance Indicators:

I. The percentage of households with access to basic level of water, sanitation, electricity and waste removal.

II. The percentage of households earning less than R1 100 per month with access to free basic services.

III. 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.

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IV. The number of jobs created through municipality’s local economic development: initiatives including capital projects.

V. The number of people from employment equity target groups employed in three highest levels of Management in compliance with a Municipality approved employment equity plan.

VI. The percentage of a municipality’s budget actually spent on implementing workplace skills plan.

VII. Financial viability as expressed by the following ratios:

Debt coverage

Outstanding service debtors to revenue

Cost coverage These indicators are to be incorporated as part of the Municipality’s own indicators and will be reported on when compiling its annual report as prescribed in terms of the Municipal Systems Act.

4.10. KEY PERFORMANCE AREAS (KPA’S)

The Regulations, 2001 provides for the development of priorities and objectives as formulated by the Municipality during its Integrated Development Planning process. The Regulations 2006, provides for performance in terms of performance indicators linked to the following Key Performance Areas (KPA’s). In line with the five (5) year (2012-2016) IDP, the following KPAs were identified as the key drivers of the Municipality’s strategic objectives:

KPA 1 Basic Service Delivery

KPA 2 Municipal Transformation and Organisational Development

KPA 3 Local Economic Development

KPA 4 Municipal Financial Viability and Management

KPA 5 Good Governance and Public Participation

KPA 6 Spatial Rational The sixth KPA of Spatial Rational has been added in an attempt to provide a differentiated approach to addressing past unbalanced human settlement pattern and to lead, direct and manage the spatial, built and natural environment to ensure a spatial planning system that is sustainable and enhances integrated growth and development.

The Municipality has identified five (5) strategic objectives namely:



LLM 3: Promote more active community participation in local government


LLM 5: Build more united, non-racial, integrated and safer communities Related to the five broad strategic objectives, the Municipality has also identified nine strategic focus areas:

STRATEGIC FOCUS AREA 1: EQUITABLE PROVISION OF SERVICES

Adequate provision of basic services: Water, sanitation, electricity, solid waste removal and roads

Building new Infrastructure Maintaining of infrastructure Sustainable service provision

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STRATEGIC FOCUS AREA 2: CREATION OF INTEGRATED AND SUSTAINABLE HUMAN SETTLEMENTS

Building communities Improve the quality of life Healthy and socially inclusive communities

STRATEGIC FOCUS AREA 3: CREATION OF LINKED ECOLOGICAL OPEN SPACES AND ENVIRONMENTAL SUSTAINABILITY

Environmental management Safe and healthy environments Parks and recreational facilities Ecological opens spaces such as Grootdraai Dam, wetlands and pans, rivers and water

courses, conservation areas and koppies

STRATEGIC FOCUS AREA 4: DELINEATION OF AN URBAN EDGE

Urban sprawl First Order Node: Standerton, Second Order Node: Morgenzon, Third Order Node: Thuthukani, Platrand and Holmdene and Fourth Order Node: Hartbeeskuil, Val, etc in line with the approved Spatial Development

Framework

STRATEGIC FOCUS AREA 5: ESTABLISHMENT OF EFFICIENT ACCESS AND INTEGRATED MOBILITY

Road networks Public transport nodes

STRATEGIC FOCUS AREA 6: CREATION OF A FUNCTIONAL HIERACHY

Robust administration Building administrative capability

STRATEGIC FOCUS AREA 7: FINANCIAL SUSTAINABILITY

Sound financial management and accounting Financial viability

STRATEGIC FOCUS AREA 8: EFFECTIVE LEADERSHIP, GOOD GOVERNANCE AND PUBLIC PARTICIPATION

Putting people first Transparent, accountable community engagement Community participation and responsiveness Programmes for the poor, disabled, youth & elderly Functional governance structures

STRATEGIC FOCUS AREA 9: BOOSTING THE LOCAL ECONOMY AND JOB CREATION

Planning and regulating of growth

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Direct investment job opportunities Local economic development

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4.11. KEY PERFORMANCE AREAS (KPAs), STRATEGIC OBJECTIVES (SOs), KEY PERFORMANCE INDICATORS (KPIS) AND STRATEGIC FOCUS

AREAS (SFAS) AIMED AT ADDRESSING PRIORITY ISSUES

In addressing the KPAs, strategic objectives and the strategic focus areas as outlined above, objectives it is critical that a link is established between these indicators that will be used to measure the Municipality’s performance for the 2015/2016 financial year.

The following table makes the link between KPAs, strategic objectives and the strategic focus areas.

KEY PERFORMANCE AREA 1: BASIC SERVICE DELIVERY


SFA 1: Equitable provision of services

SFA 5: Establishment of efficient access and integrated mobility

Outcome: Improved access to services

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IDP REF NO

PROGRAMME

PROGRAMME OWNER

OBJECTIVE KEY PERFORMANCE INDICATOR

BASELINE ANNUAL TARGETS

INPUT INDICATORS

OUTPUT INDICATORS

OUTCOME INDICATORS

WARD

BSD-01 PMU-01 TECHNICAL SERVICES

Effective expenditure management of capital project funding

MIG conditional grants spent in accordance with applicable frameworks

50% expenditure of Municipal Infrastructure Grant (MIG) coupled with Roll-overs on capital projects

100% of Municipal Infrastructure Grant (MIG) spent (Rand value)

Approved funding

Expenditure reports

Effective cash flow management

All


Capital projects implemented on time and within budget

Standerton waste water treatment plant upgraded according to approved specifications.

Current effluent inflow 13ML per day; designed to treat 11ML per day but treating only 9ML per day

Standerton waste water treatment plant upgraded to specifications

MIG Approved funding

MIG Expenditure reports

Optimally functioning waste water treatment works

1-8, 10-11, 15



Bulk water infrastructure installed and AC pipes replaced with PVC pipes and improved water conservation and demand management

Bulk water infrastructure installed and AC pipes replaced with PVC pipes



Reduced water distribution losses

1-8, 10-11, 15

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Boreholes installed in rural areas

28145 (90.6%) households with piped water in dwelling; 2195 households with access to communal taps; 731 no water provision

9 Boreholes installed in rural areas



Increased water provision in rural areas

9, 12, 13



Sanitation services installed in rural areas

87 rural sanitation toilets installed



Increased sanitation provision in rural areas

9, 12, 13



Electrification of RDP houses in Standerton extension 8

120 RDP houses electrified in Standerton Extension 8

INEP Approved funding

Increased access to electricity

15



Fencing of Walter Sisulu Street cemetery

Walter Sisulu Street Cemetery fenced old and dilapidated

??? Km of fencing constructed around Walter Sisulu Street Cemetery

EPWP Approved funding

Expenditure reports

Safe and secured burial space

1 - 15

BSD-08 PMU-09 Capital projects implemented on time and within budget

Electrification of rural houses

53 houses in rural area electrified

Internal funding

9

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BSD-09 PMU-10 Capital projects implemented on time and within budget

Environmental impact assessment conducted for development of new cell at Morgenzon landfill site

Conduct environmental impact assessment for development of new cell at Morgenzon landfill site

Internal funding

Clean and safe environment

14

BSD-10 WATER & SANITATION

-01

TECHNICAL SERVICES

Updated Water Services Development Plan (WSDP)

Reviewed Water Services Development Plan (WSDP) for submission to Council by January 2016

Current WSDP requires updating

Water Services Development Plan updated and submitted to Council by end January 2016

Existing WSDP Updated and council approved WSDP

Integrated water and sanitation services planning

All


-02

TECHNICAL SERVICES

Improved blue drop status

Blue drop status improved from 34,4% to 44%

34.4% Blue drop status, ranked 12th in Province

10% Improvement in blue drop status

Sampling points

District Water Laboratory compliance monitoring report

Improved water quality


-03

TECHNICAL SERVICES

Reduction in unaccounted water distribution losses

Reduced unaccounted technical water losses within the norm of 10%

Non-revenue water losses accounted for 14% (2013/2014 audited financial statements), and 57,2% from 2012/2013 audited AFS (only 10% of such losses can be accounted for as technical losses)

Reduce unaccounted water losses within norm of 10%

Formal

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-04

TECHNICAL SERVICES

Sustainable provision of water to all formal households

Households provided with potable water provision

28146 (90.6%) households with piped water in dwelling; 2194 households with access to communal taps; 731 no water provision (StatsSA); water interruptions due to aging infrastructure

Provide 2371 households with piped water. Reduce water interruptions.


-05

TECHNICAL SERVICES

Sustainable provision of water to households in rural wards

households in rural areas provided with water via drill boreholes

28145 (90.6%) households with piped water in dwelling; 2195 households with access to communal taps; 731 no water provision (StatsSA)

4197 Households in rural areas provided water via drill borehole

Rural


-07

TECHNICAL SERVICES

Improved green drop status

green drop status improved from 54% to 64%

54% green drop status, ranked 4th in the province

Improvement of green drop status

Sampling points

District Water Laboratory compliance monitoring report


-08

TECHNICAL SERVICES

Sustainable provision of sanitation services to households in rural wards

households in rural areas provided with sanitation services

29791 (86.6%) households with flush or chemical toilets; 316 VIP toilets; 1980 pit latrines, 1280 no toilet

516 Households in rural areas provided with sanitation services via VIP toilets

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-09

TECHNICAL SERVICES

Provision of formal domestic customers with access to removal of waste water and refuse by means of sewers

Households receiving sanitation services

28918 formal domestic customers receiving sewerage services

All formal domestic customers with access to removal of waste water and refuse by means of sewers

BSD-18 ELECTRICITY &

TRANSPORT-01

TECHNICAL SERVICES

Data collected on all electrical equipment containing Polychlorinated Biphenyls (PBC)

Data collected and report generated by 30 December 2015 on all electrical equipment containing Polychlorinated Biphenyls (PBC)

Equipment (transformers, switch gear, circuit breakers) older than 1989 with Polychlorinated Biphenyls oils (PBC) as an insulation mechanism must be replaced with more bio-friendly oil that does not contain PCB in line with the Regulations to phase out the use of PCB materials and PCB contaminated materials of 2014

1 Report generated by December 2015 on data collected on electrical equipment containing PBCs

All


TRANSPORT-02

TECHNICAL SERVICES

Maintenance and repairs of street and high mast lights

Number of street lights and high mast maintained and repaired

0ver 2000 street lights and high mast

# street lights and high-mast lights maintained and repaired

Database of street and high mast lights

Working street and high-mast lights

Well-lit areas 1 - 8, 10 - 11 & 15

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TRANSPORT-03

TECHNICAL SERVICES

Electrical network audit conducted

Conduct audit on the network infrastructure

The current network is not reliable, it is old, fault, damaged and not well maintained (To identify the aging equipment, for the purpose of repairs and maintain affected network equipment)

40% of the network audited

Data on electrical network

Electrical network audit report


TRANSPORT-04

TECHNICAL SERVICES

Maintenance of network equipment

Maintenance of substations and mini-subs

There was no proper maintenance and many equipment they are operating at less than 50% of their life span (All electrical equipment to be maintained and repaired)

60% of electrical network to be maintained


TRANSPORT-05

TECHNICAL SERVICES

Electrical Network refurbished

Replace all aging and vandalised electrical equipment

some of the equipment are more than 40 years old need to be replaced

20% of aging and stolen electrical equipment to be replaced

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BSD-23 ROADS & WORKS-01

TECHNICAL SERVICES

Maintenance of municipal roads

Distance of roads maintained

80km's of roads are well maintained and 77km's of paved finished roads are stressed, with potholes, cracks and severe deterioration

25km of roads maintained through pothole patching

Road maintenance plan

Maintained roads

Improved road drivability


TECHNICAL SERVICES

Gravelling of municipal roads

Distance of roads gravelled

209.6km's of gravel roads gravelled, 8km's inaccessible or never gravelled and Municipal borrow pit has been established in process of registration

5km of roads gravelled


Gravelled roads

Improved road drivability


TECHNICAL SERVICES

Cleaning and maintenance of storm-water drainage systems

Distance of storm-water structures cleaned and maintained

80Km's of storm water structures have efficient flow and 98.3 are blocked and used for dumping

???km of storm-water structures cleaned and maintained


Clean storm-water structures

BSD-26 WASTE MANAGEM

ENT-01

COMMUNITY SERVICES & SAFETY

Provide solid waste collection services to formal households

Number of points provided with weekly kerbside solid waste collection services according to 25 zonal plan

19786 points with access to weekly solid waste collection service out of 21606 points

949 728 points provided with weekly solid waste collection service annually

Weekly zonal plan

Weekly business solid waste collection as per zonal plan

Cleaner environment

All

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ENT-02


Provide solid waste collection services to businesses

Number of businesses provided with at least weekly solid waste collection service according to 2 zonal plan

319 businesses with access to solid waste collection

No. of Businesses provided with weekly solid waste collection service

Weekly zonal plan

Weekly household solid waste collection as per zonal plan

Cleaner environment

All


ENT-03


Extend access to solid waste collection services

Number of additional households where solid waste refuse removal services to be provided

1820 households with no access to solid waste removal service (Thuthukani RDP - 520; Rooikoppen - 350; Mandela Camp - 250)

1000 Additional households provided with access to weekly kerbside solid waste removal service

Weekly zonal plan

Extended solid waste removal service

Cleaner environment

All


ENT-04


Provide street cleaning service in CBD and along main route entrances

Areas in CBD and along main routes entrance cleaned according to zonal plan

Street cleaning in CBD areas and main routes done daily

4 reports on the Implementation of street cleaning services as per monthly schedule

Monthly schedule for cleaning

Monthly report on cleaning schedule

Cleaner environment

All

BSD-30 FIRE & DISASTER

MANAGEMENT-01


Functional Fire Brigade Services

Number of reports on fire brigade and emergency rescue services rendered submitted quarterly

4 Reports on fire brigade and emergency rescue services rendered prepared

4 Reports on fire brigade and emergency rescue services rendered annually

Occurrence book entries

BSD-31 LICENSING-01


Drivers and vehicle licencing activities undertaken

Number of vehicles tested for registration and licensing and reported on

No. Of vehicles licensed

12 Monthly Reports on the registered and licensing of vehicles

E- Natis System face value forms

Roadworthy vehicles

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monthly

BSD-32 LICENSING-02


Testing for Learners Licences

Number of applicants tested for learners licenses and reported on monthly

No. Of Learners tested

12 Monthly Reports on applicants tested for learners license

E Natis System face value forms

Legally registered licensed drivers

BSD-33 LICENSING-03


Testing for Drivers Licences

Number of applicants tested for driver’s license and reported on monthly

No. Of drivers 12 Monthly Reports on applicants tested for driver’s license


Legally registered learners licensed drivers

BSD-34 LICENSING-04


Testing of Vehicles for roadworthiness

Number of vehicles tested for roadworthiness and reported on monthly

No. Of vehicles tested

12 Monthly Reports on applications for testing of vehicles for roadworthiness


Roadworthy vehicles

BSD-35 TRAFFIC-01 COMMUNITY SERVICES & SAFETY

Traffic Law Enforcement

Number of reports on traffic law enforcement activities undertaken quarterly

4 Reports 4 Reports on traffic law enforcement activities undertaken annually

BSD-36 LIBRARIES-01


Functional library service

Number of library community awareness campaigns conducted quarterly

New KPI 4 Library community awareness campaigns conducted annually

Library Programme

Library awareness

All

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BSD-37 LIBRARIES-02


Functional library service

Number of new members recruited to join Lekwa libraries

New KPI 4 Reports on increase in library readership annually

Existing library membership data

Increased library membership

All

BSD-38 SPORTS & RECREATIO

N-01


Maintenance of cemeteries

Existing cemeteries maintained according to monthly plan

Cemeteries cleaned Cemeteries cleaned according to monthly plan

Monthly schedule for cleaning

Clean environment

All


N-02


Provide burial grounds

Weekly preparation of burial sites

Burial sites prepared

4 Reports of burial space prepared annually

Requests and payments for burial space

Gravesites prepared

Clean environment

All


N-03


Maintenance of sports and recreational facilities

Existing sports and recreational facilities maintained according to monthly plan

Facilities maintained as per monthly plan

4 Reports on maintenance of facilities prepared annually

Clean environment

All


N-04


Maintenance of parks, gardens and open spaces

Existing parks, gardens and open spaces maintained according to monthly plan

Areas maintained as per monthly plan

4 Reports on maintenance of facilities prepared annually

Clean environment

All

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KEY PERFORMANCE AREA 2: MUNICIPAL TRANSFORMATION AND ORGANISATIONAL DEVELOPMENT


SFA 6: Creation of a functional hierarchy

Outcome: Transformed organisation

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IDP REF NO

PROGRAMME

PROGRAMME OWNER



INPUT INDICATORS

OUTPUT INDICATORS

OUTCOME INDICATORS

WARD

MTOD-01 PERFORMANCE

MANAGEMENT-01

MM Development of a Performance Management framework

Updated and approved Performance Management framework by end July 2015

Performance Management framework approved in June 2013

Updated Performance Management Framework submitted to Council for approval by end July 2015

Current PMS Policy Framework

Revised and adopted PMS Policy framework

Effective organisational performance management

All

MTOD-02 PERFORMANCE

MANAGEMENT-02

MM Implementation of performance management system

Performance agreements of section 57 senior managers signed within prescribed timeframe annually by end July 2015

6 Performance agreements signed for sec 54/56 managers

6 Performance agreements of section 57 senior managers signed within prescribed timeframe annually

Draft performance agreements, Municipal Performance Planning Regulations, SDBIP

Signed performance agreements

Effective performance monitoring

All

MTOD-03 PERFORMANCE

MANAGEMENT-03


Quarterly performance reviews conducted for section 54/56 managers and reported on quarterly to Council

Performance reviews not conducted

24 performance reviews conducted

Signed Performance agreements

Performance reviews


All

MTOD-04 PERFORMANCE

MANAGEMENT-04


Evaluating of performance of s54/56 managers conducted annually

Annual performance reviews not conducted

6 annual performance evaluations conducted for s54/56 managers

Signed Performance agreements

Annual performance evaluations


All

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MTOD-05 HUMAN RESOURCES-

01

CS Filling of posts in line with the approved Organogram and Budget for the 2015/2016 financial year

Number of posts filled as per the approved 2015/2016 staff establishment

Vacancy rate at 25.72%

Filling of vacancies in line with the approved and funded Organogram and Budget for the 2015/2016 financial year

Approved organogram

Appointment letters

Fully staffed organisational structure

All


02

CS Job descriptions developed to monitor employee performance

Number of job descriptions developed in line with task job evaluation system by end December 2015

New KPI Outstanding Job descriptions developed by end December 2015

Draft job descriptions

Approved job descriptions

Effective workforce

All


03

CS Improved labour relations

Number of Local Labour Forum meetings held monthly and reported on quarterly

Non-adherence to schedule of forum meetings

12 sittings of Local Labour Forums meetings annually

Schedule of meetings

Minutes of meetings

Improved labour relations

All


04

CS Equitable employment opportunities created

Employment Equity Committee meetings held and reported on quarterly


4 Employment Equity meetings held annually


Minutes of meetings

Transformed workforce

All


05

CS Creation of a skilled and capacitated workforce

Training Committee meetings held and reported on quarterly


4 Training Committee meetings held annually


Minutes of meetings

Skilled and capacitated workforce

All

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06

CS Creation of a safe and healthy working environment

Occupational Health and Safety meetings convened and reported on quarterly


4 Occupational Health and Safety meetings held annually


Minutes of meetings

Healthy and safe working environment

All


07

CS Implementation of the Workplace Skills Plan

Annual Training Report (ATR) and Workplace Skills Plan (WSP) submitted to LGSETA annually by 30 April

Annual Training Report (ATR) and Workplace Skills Plan (WSP) submitted to LGSETA by 30 April 2015

ATR and Workplace Skills Plan submitted to LGSETA by 30 April 2016

Approved WSP and ATR

ATR and WSP submissions acknowledged


All


08


Percentage training interventions implemented in terms of the approved WSP (actual training interventions implemented / total training interventions planned)

Workplace Skills Plan implemented at 50% of planned training

60% of training interventions implemented in terms of the approved WSP

Approved WSP

Quarterly training reports


All


09

CS Development of Bursary Policy for Internal Staff

Development and submission to Council of Bursary Policy for Internal Staff by end October 2015

Draft Bursary Policy for Internal Staff developed

Bursary Policy for Internal staff developed and submitted to Council by end October 2015

Draft Bursary Policy for Internal Staff

Approved Bursary Policy for Internal Staff

Capacitated and skilled workforce

All

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10

CS Bursary funding for Internal Staff

Rand value of bursary budget spent on training of internal staff through the Bursary Policy for Internal Staff

New KPI R 100 000.00 spent on the training of internal staff through bursary funding

Approved Bursary Policy for Internal Staff

Approved bursary applications

Capacitated workforce

All


11

CS Create opportunities for internships and learner ships programmes in line with approved WSP

Number of Internships and learner ships opportunities created per approved WSP

26 Interns (Work Integrated Learning) and 8 learners participating in learner ships appointed

Approved internships and learner ships programmes implemented in line with approved WSP

Approved discretionary funding

Quarterly training reports

Capacitated workforce and youth

All


12

CS Recruitment of financial interns

Number of Finance interns appointed by end July 2015 in terms of FMG standards

Only three interns appointed/ one absorbed

Five (5) interns appointed in terms of FMG standards

Intern candidate shortlist

Appointment letters

Capacitated interns

All


13


Percentage of municipality’s budget actually spent on implementing its workplace skills plan (WSP) (Actual amount spent on training /total funds allocated for training)

Workplace Skills Plan implemented at 50% of planned training

60% of budget spent on implementation of WSP

Approved Workplace Skills Plan

quarterly training report

Effective expenditure management

All

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14

CS Approval of an Employment Equity Plan (EEP)

Employment Equity Plan approved and submitted to the Department of Labour by end October 2015

Employment Equity Plan approved by January 2015

Employment Equity Plan approved and submitted to the Department of Labour

Approved employment equity plan

Employment equity targets met

Transformed workforce

All


15

CS Implementation of the Employment Equity Plan (EEP)

Number of people from employment equity target groups employed in the three highest levels of management in compliance with the approved Employment Equity Plan

A total of nine (9) employees from disadvantaged groups (black females) in the first 3 levels

Recruit and appoint an additional 7 female and or disabled employees in the first 3 levels of management

Approved organogram

Appointment letters

Employment equity in the workplace

All


16

CS Implementation of the Employment Equity Plan

Number of reports submitted on employees employed in accordance with approved EEP targets and reported on quarterly

New KPI 4 reports submitted on employees employed in accordance with approved EEP targets and reported on quarterly

Approved organogram and Employment Equity Plan

Appointment letters and Annual Employment Equity Report submitted to Department of Labour

Employment equity in the workplace

All


17

CS Improved ITC governance and management

ICT policies for Disaster Recovery Plan (DRP) and Business Continuity Plan (BCP) developed by end July 2015

Draft policies in place

Develop ICT policies for Disaster Recovery Plan (DRP) and Business Continuity Plan (BCP) by end July

Draft DRP and BCP policies

Approved DRP and BCP policies

Improved IT governance

All

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2015


18

CS Development of Scarce Skills Policy

Scarce Skills Policy developed for submission to Council by end October 2015

New KPI Scarce Skills Policy developed for submission to Council by end October 2015

Draft Scarce Skills Policy

Approved Scarce Skills Policy

Regulated scarce skills environment

All


19

CS Development of Staff Retention Policy

Staff Retention Policy developed for submission to Council by end January 2016

New KPI Staff Retention Policy developed for submission to Council by end January 2016

Staff Retention Policy

Staff Retention Policy

Retention of critical and scarce skills

All


20

CS Telephone Usage Policy developed

Telephone Usage Policy developed for submission to Council by end April 2016

New KPI Telephone Policy Telephone Policy

Telephone Policy

Effective management of telephone usage

All


21

CS Submission of Return on Earnings Report to the Compensation Fund

Submission of Return on Earnings Report to the Compensation Fund by end March 2016

Return of Earnings Report submitted to Compensation Fund

Return of Earnings Report submitted by end of March 2016

Return of Earnings Report

Letter of good standing from the Compensation Commission

Sufficient employee cover against injury on duty

All

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KEY PERFORMANCE AREA 3: LOCAL ECONOMIC DEVELOPMENT


SFA 9: Boosting the local economy and job creation

Outcome: Improved economic growth

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IDP REF NO

PROGRAMME PROGRAMME OWNER

OBJECTIVE KEY PERFORMANCE

INDICATOR

BASELINE ANNUAL TARGETS INPUT INDICATORS

OUTPUT INDICATORS

OUTCOME INDICATORS

WARD

LED-01 LOCAL ECONOMIC

DEVELOPMENT

DEVELOPMENT & PLANNING

Revised LED strategy developed

LED strategy updated and submitted for approval by Council by end July 2015

LED strategy approved by Council but requires review and updating

Updated and revised LED Strategy submitted for approval by Council end July 2015

Existing LED Strategy

Revised and approved LED strategy

Identified local economic growth potential

All


DEVELOPMENT


Conducive economic policy developed to attract investment opportunities

Investment Incentive policy submitted to Council by end July 2015

Draft Investment Incentive Policy developed

Updated and revised Investment Incentive Policy submitted for approval by Council by end July 2015

Draft Investment Incentive policy

Approved Investment Incentive Policy

Conducive economic environment

All


DEVELOPMENT


Functional LED Forum

Number of LED Forum meetings held quarterly to enhance creation economic growth opportunities

LED Forum re-launched

4 LED Forum meetings convened annually

Reports, agendas

LED Forum Resolutions taken

Improved business partnerships

All


DEVELOPMENT


Profiling of businesses

Quarterly updated database of all businesses operational in Lekwa

New KPI Quarterly updated database of businesses operational in Lekwa

SMME & Cooperatives database

Updated business database

Established All


DEVELOPMENT


SMME & Cooperatives support

Number of training interventions coordinated for SMMEs and cooperatives quarterly

4 training interventions conducted for 2014/2015

4 training interventions coordinated for SMMEs and cooperatives annually

Database of SMMEs and cooperatives

Training interventions facilitated

Empowered SMMEs & cooperatives

All

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DEVELOPMENT


Implementation of 2011 LED Job Summit Resolutions

Number of reports submitted quarterly on implementation of 2011 LED Job Summit Resolutions

New KPI 4 quarterly reports submitted on implementation of 2011 LED Job Summit held

2011 LED Job Summit Resolution

Approved reports

Improved economic growth

All


DEVELOPMENT


LED Job Summit hosted

LED Job summit hosted by end May 2016

LED Job Summit held in 2011

LED Job Summit held by end May 2016

LED Job Summit concept document

2016 LED Job Summit Resolutions

Economic growth

All


DEVELOPMENT


SMME Exhibition hosted

SMME Exhibition hosted by end September 2015 to showcase skills and products

New KPI SMME Exhibition held by end September 2015

SMME Exhibition concept document

SMME Exhibition

Enhanced economic development

All


DEVELOPMENT


Job opportunities created

Opportunities created for supporting skills development through EPWP and reported on quarterly

New KPI 4 quarterly reports on opportunities created for skills development through EPWP

Project implementation reports

Approved reports

Poverty alleviation

All

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KEY PERFORMANCE AREA 4: MUNICIPAL FINANCIAL VIABILITY AND MANAGEMENT


SFA 7: Financial sustainability

Outcome: Financial viability

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IDP REF NO




INPUT INDICATORS

OUTPUT INDICATORS

OUTCOME INDICATORS

WARD

MFV-01 REVENUE & BILLING-01

CHIEF FINANCIAL OFFICER

Administration of the Municipal Bank Accounts

Favourable bank balance maintained in the primary bank account throughout the financial period

Favourable bank balance of R 2 499 627 in the Primary Account as at 30 June 2014

Bank Balance in Primary Bank Account R 4 million as at end June 2016

Monthly Cash Flow Statements

Quarterly Reports (Sec 52)

Effective financial management

All



Financial Management

Increased levels of investments

Municipality had investments amounting to R 12 168 625 in the call account as at 30 June 2014

Accumulated investments amounting to R 15 million in the investment account by 30 June 2016

Investment and Banking Policy


Improved financial sustainability

All



Improved system of internal controls

System of Internal Control and Reporting Procedures developed in line with section 95 of the MFMA on general financial management for submission to Council by end July 2015

New KPI System of Internal Control and Reporting Procedures developed for submission to Council by end July 2015

Draft System of Internal Control, 2013/2014 Audit Action Plan

Developed System of Internal Control and Reporting Procedures

Effective internal financial controls

All

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Revenue enhancement

Revenue generation increased to 80% monthly average

Average revenue collection rate of ???%

Improved revenue collection rate from ???% to ???% annually

System of Internal Control and Reporting Procedure; Credit Control and Debt Collection Policy


Effective revenue collection

All



Revenue Management, debt collection and credit control

Reduction in outstanding debtors

Debtors are outstanding in excess of 365 days (R 468 million)

Reduction in the Outstanding Debtors

System of Internal Control and Reporting Procedure; Credit Control and Debt Collection Policy


Effective revenue collection

All

MFV-06 BUDGETING & REPORTING


Timely IDP and Budget Review

Time schedule of key deadlines submitted to Council 10 months before start of next budget year as per s21 MFMA provisions

2014/2015 Key deadlines approved before end August

Submit time schedule of 2016/2017 key deadlines to Council by end August 2015

Section 21 MFMA; 2016-17 Draft MTREF;

Approved time schedule of 2016/2017 key deadlines

Improved financial planning

All

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MFV-07 BUDGETING & REPORTING-01


Preparation of credible budget in line with NT budgeting guidelines/regulations

Budget approved within the budget time frames as approved by Council

Budget Approved by 29th May 2015

Budget Approved before end May 2016

2016-17 Draft MTREF noted by Council by the 29th April 2016 Approved budget; Process Plan of Key Deadlines

Approved budget Credible, Sustainable Budget

All



Improved accounting standards

Pilot Project for the establishment of the MSCOA Project Steering Committee

New KPI SCOA Project Steering Committee established

Municipal SCOA Project Steering Committee Terms of Reference

Established MSCOA Project Steering Committee

MSCOA Established

All



Improved accounting standards

Number of reports towards the implementation of the Municipal Standard Chart of Accounts (MSCOA) quarterly

New KPI 4 Progress reports on activities undertaken by the MSCOA Steering Committee

MSCO Project Steering Committee Terms of Reference

Reports and Minutes of MSCOA Steering Committee

Functional MSCOA Project Steering Committee



Timely Financial Reporting

Number of section 71 reports submitted within 10 working days from end of a

12 monthly s71 reports submitted annually

MFMA section 71

S71 Reports; Quality Certificates & Acknowledgement of receipt of report

Improved accountability

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month




Number of section 52 reports submitted to Council within 30 days of the end of a quarter

4 quarterly section 52 reports submitted annually

MFMA Section 52

S52 Reports; Quality Certificates & Council Resolutions

Improved accountability and oversight




Number of midyear budget and performance assessment report 72 reports submitted to Council in terms of section 5(1)(f) of MFMA by end January annually

Midyear budget and performance assessment submitted on 29 January 2015

1 midyear assessment report submitted to Council by end January 2016

MFMA Sections 72 and 54; Section 72 report

Midyear budget and performance assessment report: Council Resolution





2014/2015 AFS submitted to Council and AG by end August 2015

AFS submitted to Council and AG by end August

2014/2015 AFS submitted to Council and AG by end August 2015

Section 71 and 52 reports

Draft AFS submission acknowledgement of receipt by AG

Improved accountability and good governance

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MFV-14 EXPENDITURE-01


Improved system of internal controls

System of Internal Control and Reporting Procedures developed in line with section 65 on expenditure management for submission to Council by end July 2015

New KPI System of Internal Control and Reporting Procedures developed for submission to Council by end July 2015

Draft System of Internal Control, 2013/2014 Audit Action Plan

Developed System of Internal Control and Reporting Procedures

Effective internal financial controls

All

MFV-15 EXPENDITURE-02


Expenditure management

Reports submitted quarterly to Council on expenditure management

New KPI 4 reports annually on withdrawals not approved and salaries and wages expenditure

System of Internal Control and Reporting Procedure

Quarterly Section 52 reports; Council Resolution


All

MFV-16 SUPPLY CHAIN MANAGEMENT-

01


Effective procurement systems

Number of reports submitted to Council quarterly on implementation of supply chain management policy in line with the Reg 6 of the Supply Chain Management Regulations

Quarterly Reports on withdrawals and deviations submitted

4 reports submitted annually on the implementation of the Supply Chain Management Regulations

SCM Regulations and Approved SCM Policy

Quarterly SCM reports, Council Resolutions


All

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MFV-17 SUPPLY CHAIN MANAGEMENT-

02


Contract Management

Finalisation of Service Level Agreements with appointed service providers within stipulated timeframes as per appointment letter

New KPI Finalisation of Service Level Agreements with appointed service providers within stipulated timeframes as per appointment letter

Bid Adjudication Reports

Signed Service Level Agreements

Effective contract management

All

KEY PERFORMANCE AREA 5: GOOD GOVERNANCE AND PUBLIC PARTICIPATION

LLM 3: Promote more active community participation in local government

SFA 8: Effective leadership, good governance and public participation

Outcome: Improved accountability and transparency

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IDP REF NO




INPUT INDICATORS

OUTPUT INDICATORS

OUTCOME INDICATORS

WARD

GG-01 INTERNAL AUDIT-01

MM-01 Maintain audit outcome

Non-regression from 2013/2014 audit outcome and no more than 15 other matters raised in the 2014/2015 audit outcome to be received by November 2015

2013/2014 Unqualified audit opinion

2014/2015 unqualified audit outcome with no more than 15 other matters raised

AFS and APR Audit Report Improved good governance and accountability

All


MM-02 Action plan developed to address audit findings

Action plan developed and reported on quarterly to address audit findings

2013/2014 Audit action plan developed

4 Quarterly reports on addressing audit findings in the audit action plan

Audit action plan

All audit findings cleared

Improved good governance and accountability

All


MM-03 Functional audit committee

Number of Audit committee meetings convened annually

Adherence to Audit Committee schedule of meetings

4 Audit Committee meetings held annually

Internal Audit reports

Audit Committee minutes

Improved good governance and oversight

All



Number of Audit committee reports prepared for timely submission to Council quarterly

4 audit committee reports prepared and submitted to Council

4 Audit Committee reports submitted to council annually

Audit committee minutes

Council adopted Audit Committee reports


All

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Audit Committee charter developed and submitted to council by end July 2015

2014/2015 Approved Audit Committee Charter

Audit Committee Charter reviewed and submitted to Council

Current audit committee charter to be reviewed

Revised and adopted Audit Committee Charter


All

GG-06 RISK MANAGEMENT-

01

MM-06 Effective enterprise risk management

Enterprise-wide risk register developed and submitted to Council by end July 2015

2014/2015 Risk register developed

Enterprise-wide risk register developed and adopted by Council

Risk assessment workshops conducted

Risk Register Improved good governance

All


02

MM-07 Functional Risk Management Committee

Number of Risk Management Committee meetings held annually

New KPI 4 Risk Management Committee meetings held annually

Risk assessment reports

Risk Management Committee minutes


All


03

MM-08 Functional Risk Management Committee

Number of Risk Management Committee reports compiled for submission to the Audit Committee quarterly

New KPI 4 Risk Management Committee reports submitted to the Audit Committee annually

Risk Management Committee minutes

Audit Committee adopted risk management reports


All


04

MM-09 Ensure sustainable anti-corruption capacity

Number of anti-corruption and ethics awareness raising workshops conducted quarterly

New KPI 4 Anti-corruption and ethics awareness raising workshops conducted annually

Approved Anti-corruption and Fraud Prevention Plan

Workshops held Reduced corruption risk

All

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GG-10 RISK MANAGEMENT-05

MM-10 Review of Risk Management Policy

Risk Management Policy and Risk Management Strategy adopted by Council April 2015

Risk Management Policy and Risk Management Strategy reviewed for submission to Council by end June 2016

Review Risk Management Policy and Risk Management for submission to Council by end June 2016

Risk Management Policy and Strategy

Revised and approved Risk Management Policy and Strategy

Improved good governance

All


06

MM-11 Review Fraud Prevention Plan and Awareness Strategy on Fraud and Corruption

Fraud Prevention Plan and Awareness Strategy on Fraud and Corruption reviewed for submission to Council by end June 2016

Fraud Prevention Plan and Awareness Strategy on Fraud and Corruption approved by Council in November 2011

Review Fraud Prevention Plan and Awareness Strategy on Fraud and Corruption

Adopted Fraud Prevention Plan and Awareness Strategy on Fraud and Corruption

Revised and approved Fraud Prevention Plan and Awareness Strategy on Fraud and Corruption

Reduced corruption risk

All

GG-12 PERFORMANCE MANAGEMENT-

01

MM-12 Compliance with legislated provisions for effective performance management

Number of quarterly performance reports prepared and submitted to Council

4 performance reports submitted

4 Performance reports prepared and submitted to Council annually

Performance information reports

Council adopted performance information reports


All


02


2014/2015 Annual Performance Report prepared in compliance with section 46 of MSA prepared and submitted to AG by end August 2015

Annual Performance Report submitted on 28 August 2014

1 Annual Performance Report submitted to AG by end August 2015

Quarterly performance information reports

Tabled annual performance report


All

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03


2014/2015 Annual Report submitted to be tabled to Council by no later than end January 2016

Annual Report tabled on 29 January 2015

1 Annual Report tabled to Council before end January 2016

Quarterly performance information reports & draft annual performance report

Tabled annual report


All


04


2014/2015 Oversight report on annual report prepared and submitted to Council in compliance with section 129 of MFMA before end March 2016

2013/2014 Oversight Report adopted on 30 March 2015

1 Oversight Report on annual Report prepared and submitted for adoption by Council before end March 2016

Tabled Annual Report

Council adopted oversight report

Improved good governance, transparency and accountability

All


05

MM-16 SDBIP aligned to the IDP and the budget

Approved 2016/2017 SDBIP aligned to IDP and budget, within 28 days after budget approval

Approved SDBIP SDBIP aligned to IDP and budget approved within 28 days after budget approval

Predetermined objectives as contained in the approved 2016/2017 IDP

SDBIP approved by Executive Mayor

Improved good governance, transparency and accountability

All

GG-17 INTEGRATED DEVELOPMENT PLANNING-01

DP-01 Credible IDP development

Reviewed and approved 2016/2017 IDP by end May 2016

Council approved IDP

2016/2017 IDP approved by end May 2016

Draft IDP Council adopted IDP


All



2016/2017 IDP/Budget/PMS Process Plan adopted by Council by August 2015

2015/2016 IDP/Budget/PMS process plan adopted by Council

IDP/Budget/PMS process plan adopted by end August 2015

Draft process plan

Council approved IDP/Budget/PMS process plan


All

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Number of IDP Technical Steering Committee meetings held quarterly to consolidate inputs into draft IDP

New KPI 4 IDP Technical Steering Committee meetings held annually

Approved process plan

IDP Technical Steering Committee minutes


All



Number of IDP Representative Forum meetings held quarterly for consolidation of sector department inputs into draft IDP

New KPI 4 IDP Representative Forum meetings held annually

Approved process plan

IDP Representative Forum minutes


All

GG-21 SECRETARIAT-01

CS-01 Developing of schedule of council and committee activities

Schedule of all activities of Council and its committees developed by end June 2016

2014/2015 Schedule developed

Schedule developed of all activities of Council and its committees

Draft schedule Approved schedule of activities

Improved governance

All


CS-02 Adherence to schedule of council meetings

Ordinary sitting of Council meetings as per approved schedule held quarterly

Schedule of council meetings adhered to

4 Ordinary Council meetings held annually

Reports, notice, Council agenda

Council meeting minutes, attendance registers


All


CS-03 Monitor implementation of Council resolutions

Quarterly reports on progress on implementation of council resolutions

1 Report submitted on implementation of council resolutions

4 Reports on progress on implementation of council resolutions submitted to Council annually

Council minutes Approved reports


All

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CS-04 Functional section 79 committees of council

Number of Rules, Ethics, By-laws and Policies Committee meetings held in line with the Council approved schedule

Committee not sitting as per schedule

4 Rules, Ethics, By-laws and Policies Committee meetings held

Committee reports and agendas

Committee minutes


All



Number of MPAC meetings held in line with the Council approved schedule

4 MPAC meetings held


Committee minutes


All



Number of Ward Councillors Forum meetings held in line with the Council approved schedule

12 Ward Councillors Forum meetings held


Committee minutes


All



Number of Local Geographical Names Committee meetings held in line with the Council approved schedule

4 Local Geographical Names Committee meetings held


Committee minutes


All



Number of Budget & Treasury Oversight Committee meetings held in line with the

4 Budget &Treasury Oversight Committee meetings held


Committee minutes


All

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Council approved schedule



Number of Corporate & Community Services Oversight Committee meetings held in line with the Council approved schedule

4 Corporate & Community Services Oversight Committee meetings held


Committee minutes


All



Number of Technical Services Committee meetings held in line with the Council approved schedule

4 Technical Services Oversight Committee meetings held


Committee minutes


All


CS-11 Functional Mayoral Committee

Number of Mayoral Committee meetings held as per Council approved schedule

New KPI 24 Mayoral Committee meetings held

Mayoral Committee reports and agendas

Approved Mayoral Committee minutes


All


CS-12 Records management system implemented

Records Management Policy and Standard Operating Procedures

Records management system need updating

Records Management Policy and Standard Operating Procedures

Draft Records Management Policy

Approved Records Management Policy and Standard Operating

Improved records and archives management

All

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developed by September 2015

developed by September 2015

Procedures


CS-13 To regulate the affairs and services provided by the Municipality

Number of By-laws identified for review, updating and consulted upon quarterly

Outdated by-laws

4 By-laws identified, reviewed and consulted upon

Draft by-laws Widely consulted revised by-laws

Improved governance

All


CS-14 Improved customer care

Finalise and publicise adopted Municipal service charter by end July 2015

Service Charter developed

Municipal Service Charter adopted by end July 2015

Approved Municipal Service Charter

Well publicised Municipal Service Charter

Improved customer satisfaction

All

GG-35 COMMUNICATIONS-01

CS-15 Review of Communications Policy

Communications Policy and Strategy reviewed by end January 2016

Communications Strategy approved in September 2013 and needs review

Communications Policy and Strategy reviewed by January 2016

Revised Communications Strategy

Revised and council adopted Communications Policy and Strategy

Improved community interaction on the affairs of the municipality

All


CS-16 Continuous interaction with communities

Number of reports on activities undertaken on interaction with communities through print media

4 reports on print media interaction with communities

4 Reports on interaction with communities through print media

Communications strategy

Approved reports

Improved community engagement

All


CS-17 Continuous interaction with communities

Number of external newsletters issued quarterly

2 Editions issued 4 Editions of the Lekwa Gazette municipal newsletter issued annually

Articles and other newsworthy items

Printed newsletters

Improved community engagement

All

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GG-38 IGR-01 CS-18 Establishment of functional local IGR Forum

Number of local IGR Forums meetings held quarterly

New KPI 4 Local IGR Forum meetings convened annually

Approved IGR Framework

IGR Forum meeting minutes

Improved stakeholder engagements

All

GG-39 IGR-02 CS-19 Special programmes conducted quarterly for the elderly, children, youth and persons with disabilities

Special programmes conducted for the elderly, children, youth and persons with disabilities

Special programmes conducted for the elderly, children, youth and persons with disabilities as per annual plan

Special programmes conducted for the elderly, children, youth and persons with disabilities as per annual plan

Special programmes plan

Activities for vulnerable groups

Informed and participating communities

All

GG-40 OFFICE OF THE MAYOR-01

CS-20 Community involvement in the affairs of the municipality

Community participation in the affairs of the municipality through mayoral izimbizo held annually

Annual consultation on IDP and Budget held in November 2014 and April 2015 respectively

6 mayoral izimbizo to be held annually

Schedule of Izimbizo

Maximum attendance and participation; attendance registers


All

GG-41 OFFICE OF THE SPEAKER-01

CS-21 Established and functional Ward Committees

Ward operational plans developed and approved

14 of the 15 ward committees functional

15 ward operational plans developed and approved

Ward councillors' draft programmes

Approved Ward Operational Plans


All

GG-42 OFFICE OF THE SPEAKER-02

CS-22 Established and functional Ward Committees

Number of reports on the implementation of ward operational plans submitted to Council quarterly

New KPI 4 Reports on the implementation of ward operational plans submitted to Council annually

Ward committee reports

Approved Ward Committee Reports


All

GG-43 OFFICE OF THE CHIEF WHIP-01

CS-23 Functional whippery office

Number of whippery meetings convened annually

New KPI 12 Whippery meetings convened annually

Whippery meeting schedule

Approved minutes

Improved governance

All

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CS-24 Functional caucus structure

Number of caucus meetings convened annually

New KPI 4 Caucus meetings convened annually

Caucus meeting schedule

Approved minutes

Improved governance

All


CS-25 Functional multiparty forum

Number of multiparty forums convened annually

New KPI 4 Multiparty Forum meetings convened annually

Multiparty Forum meeting Schedule

Approved minutes

Improved governance

All


CS-26 Visiting of projects

Number of projects visited quarterly

New KPI 8 Projects visited annually

Approved project list

Project reports Improved oversight

All

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KEY PERFORMANCE AREA 6: SPATIAL RATIONAL

LLM 5: Build more united, non-racial, integrated and safer communities

SFA 2: Creation of integrated and sustainable human settlements

SFA 3: Creation of linked ecological open spaces and environmental sustainability

SFA 4: Delineation of urban edge

Outcome: Improved settlement patterns

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IDP REF NO




INPUT INDICATORS

OUTPUT INDICATORS

OUTCOME INDICATORS

WARD

SR-01 HUMAN SETTLMENTS-

01


Regulated alienation and disposal of municipal owned land

Approval of Land Alienation Policy submitted to Council by the end October 2015

Draft Land Alienation Policy adopted by the Council on 2014-10-30

Land Alienation Policy approved by the Municipal Council by the end October 2015

Draft Land Alienation Policy

Approved Land Alienation Policy

Effective and regulated land disposal

All


02


Upgrading plans of all existing informal settlements for future development

Approved informal settlement upgrading plans by end June 2016

Profiling, socio-economic survey and geotechnical study completed

Approved Informal Settlement upgrade by the end of June 2016

Close out report

Informal settlements upgrading plans

Upgrading of existing informal settlements

All


03


Level 1 accreditation of the Municipality by the Department of Human Settlements

To have the Municipality accredited on Level 1 by the end of the 4th quarter.

Council approved application for accreditation for Level 1 of the Municipality on 2014-10-30

Level 1 accreditation of the Municipality by end of the 4th quarter

Application for Level 1 Accreditation

Accreditation of the Municipality for Level 1

Publication of the accreditation to Level 1 on Provincial Government Gazette

All


04


Establishment of the Lekwa Social Housing Association

Establishment of Lekwa Housing Association for the management and maintenance of the Community Residential Units (CRU) by end of the 4th quarter

Council approved the establishment of the Lekwa Social Housing Company on 2014-10-30

Established Lekwa Housing Association for the management and maintenance of the CRU by the end of the 4th quarter

Application for registration of Section 21 Company

Certificate of Registration of Section 21 Company

Certificate of Registration of Section 21 Company

All

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05


Effective housing related complaints management system

Establishment housing related complaints management system by the end of the 3rd quarter

Council approved establishment of the Complaint management system on 2014-10-30

To have a complaints and resolution mechanism in place by the end of the 3rd quarter

Draft Housing / Property Complaints management register

Approved Housing / Property Complaints management system

Reduced housing / property complaints received

All


06


Compilation of an up to date housing need register

Compilation of an up to date housing need register by the 3rd quarter

Council approved the establishment of the Lekwa Housing Need Register on 2014-10-30

To have a credible Housing Register linked to DoHS by the end of the 3rd quarter

Registration drive for Housing Need Register

Updated housing need register

Reduced housing backlog

All


07


Creation of integrated and sustainable human settlements.

number of reports on implementation of government housing subsidy projects.

Reports submitted 4 reports on implementation of government housing subsidy projects.

Council Resolution as per report



All

SR-08 LAND & PLANNING-01


Reviewed Spatial Development Framework

Reviewed SDF in line with SPLUMA by end January 2016

Current SDF not in line with SPLUMA

Reviewed SDF in line with SPLUMA by January 2016

Current approved SDF

Reviewed and updated SDF

Integrated spatial planning

All



Implementation of Standerton Town Planning Scheme (Land Use Scheme)

Number of applications evaluated for the processing of land use applications within 180 days after receipt of all outstanding and relevant information and documents submitted

Approved 10 applications

10 Applications evaluations

Standard Operating Procedures for evaluating land use applications

Evaluation checklist

Regulated land uses

All

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Enforcement of National Building Regulations

Evaluate building plans within 30 days of building plans received, complete 3-4 inspections per building plan received

Approve 100 building plans, completed 350 inspections

Approve 110 building plans, complete 400 inspections

Standard Operating Procedures for building regulation

Compliance to National Building Regulations as set out in Standard Operating Procedures

Regulated building control environment

All

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5. CHAPTER 5: SPATIAL RATIONALE

5.1. LOCATION ANALYSIS

The Lekwa Local Municipality was established on the 5th of December 2000. The municipality is located in the Gert Sibande District Municipality, which is one of three District municipalities in Mpumalanga Province. The Municipal area is located on the south Mpumalanga Province on the border of the Free State province and is indirectly connected to Gauteng and Durban via N3. It is also located to the south of the TEKS area (Trichardt, Evander, Kinross, Secunda), which is the economic hub in the region. The total area of the Lekwa Local Municipality covers approximately 4 586 km² in extent. Amongst the six (6) municipalities, Lekwa Local Municipality is the smallest Local Municipality in the Gert Sibande District both in terms of the area and population and thus representing 14% of the total area of the District Municipal Area.

Figure 1: Locality

5.2. SPATIAL PARTTEN AND DISTRIBUTION

The municipal area is diverse with wide variety of socio-demographic profile demonstrated by the spatial and physical form/pattern that reflects in all aspects of local development. The Lekwa Municipal Area comprises of the following: STANDERTON

Standerton covers a total area of 3 993.8 ha in extent which measures 5km in an east-west direction and 9km in a north-south direction and thus has been identified to be the largest urban settlement in Lekwa Local Municipality. It is also identified as the only first order node in LLM as well as the administrative and institutional hub of the municipality. It is strategically located within the Lekwa Local Municipality as it is located in the South West of the LLM, at the intersection of all major routes (the R23, R39, R546 and R50) and at the only major railway station in the District.It is a typical medium sized South African town, with a central CBD, industrial areas on the periphery, low density

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residential development and separation between white and black and rich and poor neighbourhoods. Standerton is made up of Standerton Proper on the northern banks of the Vaal River; Meyerville on the Southern banks of the Vaal River; Stansfield Hill with infill development that took place in the form of Standerton West Ext 1 to the north of Standerton Proper; Sakhile Proper which is the first large black township located to the west of Standerton Proper; Standerton Ext 1 on the Southern banks of the Vaal River between Meyerville and the western portion of Standerton Proper; Standerton West Ext 3 which is directly adjacent to Standerton West Ext 1; Standerton Ext 3 to the north of Standerton Proper; Standerton Ext 4 to the north of Standerton Proper; Sakhile Ext 1, 2 & 3 which is buffered from the white town by the railway line and the industrial area; Edzak to the Southeast of Meyerville; Azalea Proper that was later extended with the establishment of Azalea Ext 1 which was developed to accommodate the Indian population located to the north of Standerton West; Standerton Ext 6 to the north of Standerkop; Sakhile Ext 7 on the west of Standerkop; Sakhile Ext 4 to the south of Sakhile Proper; Sakhile Ext 5&6 that was established to accommodate people living in the informal settlement is located between Sakhile Proper and Standerton Proper and Standerton Ext 8 which is a mixed use township catering for affordable housing market as well as RDP housing is located along R55.

MORGENZON

Morgenzon covers a total area on 304 ha which measures approximately 2km in a north-south direction and 3km in the east-west direction and is located at the intersection of the R35 and R39. Its existence is mainly influenced by the transportation of coal from the Secunda complex to Majuba Power Station near Volksrust. It is historically a local service centre that served (and still does) the surrounding commercial farming areas with basic needs. Despite its potential due to its location along a major route (R35) to Volksrust via the N11 from Bethal, it is still largely under-developed as a service centre due possibly to the competition offered by the more attractive business centres of Ermelo, Bethal and even Standerton itself. Given the vast distance between this locality and the Standerton Urban node, Morgenzon form a completely self-contained economic sub-node with a slightly different character than the former.

Morgenzon is made up of Morgenzon Proper, Sivukile Proper, Sivukile Ext 1, Sivukile Ext 2, Sivukile Ext 3, Sivukile Ext 4and Morgenxon Ext 1(industrial).

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Figure 2: Morgenzon Township Extensions

THUTHUKANI Thuthukani lies approximately 25km north east of Standerton, and essentially started as a workers village to house employees of the Tutuka power station which is located 3 km to the east of the village. It is surrounded by industrial uses such as Tutuka power station, Alpha substation to the east as well as New Denmark Colliery to the north. Thuthukani is made up of two townships namely Thuthukani Proper and Thuthukani Extension 1 as well as Eskom Hostels to the west of town. Thuthukani Ext 1 is a recently established township which is not occupied yet.

Figure 3: Thuthukani Extensions

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5.3. INFORMAL SETTLEMENTS

There are twelve (12) Informal Settlements in the Lelwa Local Municipalitynamely Mandela, Tambo, Sisulu, Welamlambo, Shivovo, Taxi Rank Camp (Standerton Ext. 6), Slovo, 3273/R & 3324/R Camp (Sakhile), 3995 Camp (Standerton Ext. 6), X-Camp (Sakhile Ext. 2), Mahala Park and TLC Camp. All twelve informal Settlements are currently in the process of being formalised through the National Upgrading Support Programme (NUSP) The SDF identified Eight (8) distinct functional areas, which consists of a range of features that clearly distinguishes one area from other zones and include the following:

5.3.1. FUNCTIONAL AREA 1

Functional Area 1 includes Standerton Proper which is characterised by low density, highest provisioning of functional open space and natural open space as well as commercial, educational, health and sport facilities. However issues such as densification, encroachment of commercial facilities into residential areas, and upgrade of the sports precinct and the civic precinct still needs to be addressed.


Functional area 2 includes Meyerville which is characterised by low density, highest provisioning of functional open space, limited natural open space and commercial facilities, lowest provision of health, secondary educational and sport and recreational facilities. However issues such as densification and health and sport and recreation facilities still needs to be addressed.


Functional area 3 includes Standerton X3 and 4 which is characterised by low density, limited functional open space but ample natural open space, no commercial facilities, limited primary educational facilities with no secondary educational facilities, sufficient health facilities as well as sport and recreational facilities. Issues that have to be addressed are densification and functional open space.


Functional area 4 includes Standerton West and Azalea which is characterised an average density, no functional open space, limited natural open space, commercial facilities, sufficient educational facilities, sport and recreational facilities as well as limited health facilities. Issues that have to be addressed include the provision of open spaces and health facilities.


Functional Area 5 includes Sakhile and extensions which is characterised by an average density, limited functional and natural open space, limited existing commercial facilities with some proposed commercial facilities, limited existing primary educational facilities with sufficient proposed educational facilities, sufficient secondary educational facilities, limited existing health facilities with sufficient proposed health facilities, limited existing sports facilities with sufficient proposed sports facilities. Issues that have to be addressed are the provisioning of open space and the development of social facility sites.

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Functional Area 6 includes Standerton X6. It has an above average density characterised with no functional open space, limited natural open space, no commercial facilities with limited proposed commercial facilities, limited primary educational facilities with no secondary educational facilities, limited health facilities, and no sports facilities. It is the most underprovided area and thus attention should be given to the provisioning of all facilities.


Functional area 7 includes Standerton X7 which is characterised with the highest density, no functional or natural open space, no commercial facilities with limited proposed commercial facilities, sufficient primary educational facilities, no secondary facilities, no health facilities and sufficient sports facilities. Issues that have to be addressed is the lack of open space and health facilities.


Functional Area 8 includes the proposed Standerton X8 which is characterised by an average density, sufficient functional open space, limited natural open space, limited commercial facilities, sufficient primary and secondary schools, no health and sports facilities. Issues that have to be addressed are health and sports facilities.

5.4. HIERACHY OF NODES

A hierarchy of nodes should consist of different order nodes, each fulfilling different functions at different scales and spread equidistant throughout the area but giving cognisance to access to main routes, population density and environmentally sensitive or protected areas. A hierarchy of nodes is important in order to ensure a functional clustering of facilities and services as well as economic viability based on economies of scale. This will ensure sustainable provision of social and commercial facilities, equality of access to all and shorter travelling distances. In this regard The Gert Sibande SDF identified Standerton as a first order node and Morgenzon and Thuthukani as third order nodes. No second order nodes were identified.

5.4.1. FIRST ORDER

Standerton

It has the largest population in the Lekwa LM,

The largest number of facilities and services as well as the highest order facilities and services.

It also forms the focus of the most important roads in the district, thus leading to and reinforcing its status as the highest order settlement.

5.4.2. THIRD ORDER NODES

Morgenzon

Has a potential to be upgraded to a second order node due to nit locality on the intersection of R39 and R35 as well as its distance from Standerton and its existing facilities.

Thuthukani

On the other hand, Thuhukani is solely dependent on Tutuka Power Station and New Denmark Colliery and as a result it does not have a natural growth potential.

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It only serves as a residential area for workers from the above mentioned facilities

It is also in an isolated locality and has limited growth potential.

Platrand and Holmdene were also identified as additional third order nodes and are characterised by the following:

Located next to railway station and major roads

There is an existing village

There is also a number of facilities such as primary school, post office and commercial facilities.

5.4.3. FOURTH ORDER NODES

Hartbeeskuil, Folly and Val.

Figure 4: Order Nodes

Land Restitution and Land Claims Land claims & land restitution is a very important as far as land development is concerned. From a spatial planning point of view land ownership does not necessarily determine the preferred use of land; however the exceptions are where uses are restructured through restricted ownership practices & where land restitution leads to commercially productive land becoming unproductive. The land restitution process can restrict investment and economic activity over the short- medium term but should not have an impact on the long-term use of the land. For the purpose of this section Land Audit is scheduled to be conducted in the coming financial year 2015/16. The land audit project has already been advertised and proposals have been received in July 2014.

Land Use Management System It is important to note that the jurisdiction of the Lekwa Local Municipality is still regulated ad governed by the Standerton Town Planning Scheme 1997. Currently there is no Land Use Management Scheme (LUMS), however the municipality is currently in the process of developing a Land Use Scheme (that will be wall to wall) with the help of the Department of Rural Development and Land Reform (DRDLR). The process of developing the LUMS was already underway since 2013

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and was suspended due to the development of the Spatial Planning and Land Use Management Act 2013 and the Regulations that has to be aligned with the LUMS.

The regulation of land use is still done in terms of different legislations which remain applicable throughout the municipal area in most instances with regard to development and that land use change applications. Land parcels that are situated outside the urban edge are administered by the Provincial Department.

The municipality has developed draft by-laws (Open space bylaw, encroachment by law as well as the Land Use Management by-law that is required by SPLUMA. However funds must be allocated in the coming financial year 2015/16 for the bylaws to be enacted.

5.5. LINKS

5.5.1. ROAD NETWORKS

Lekwa Municipal Area is not directly linked to the national road system. The major routes are thus provincial roads and minor roads. The following roads play an important role in terms of regional accessibility and linkages:

R23, R546, R547, R38, R35, R39, R50

The R23 and R35 is identified as key economic corridors on district level

R39 is identified on local level, due to the important economic nodes that they connect.

Apart from this main road network an expansive network of secondary gravel roads traverses the municipal area, providing accessibility at the most local level.

No new roads are planned in the area.

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Figure 5: Road Network

Several stretches of the road within the Municipality are either in a poor or very poor state. The following important roads within Lekwa have been identified as being in a poor state:

Portions of the R23 west of Standerton;

The 546 north of Standerton;

The R50 north of Standerton;

The R39 north-east of Morgenzon; and

The R547.

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5.5.2. RAILNETWORK

The most important railway line (freight line) is the Johannesburg – Durban passenger railway line (Shosholoza Meyl) which runs parallel to the R23. Standerton Station is one of only five stops between Johannesburg and Durban.

This line diverts in the region of Standerton with a branch line leading to Vrede in the south (freight line) as well as a line that leads to Tutuka Power station, this line however is not currently in use as it is not electrified.

There is another railway line in the eastern part of the LLM. It links linking Bethal to Volksrust via Morgenzon, Amersfoort, Daggakraal and Wakkerstroom/Sizameleni. This line is not currently in use.

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Figure 6: Rail Network

5.5.3. PUBLIC TRANSPORT

Public transport consists of rail, busses and taxis.

Standerton station plays an important role in long distance passenger transport.

In terms of busses, there is no municipal bus service, but a private bus service runs on the R546 between Standerton, the TEKS area, Bethal and Leandra.

In terms of taxis, there are several taxi services. These run mostly on the R546, but also on the R50, R23 and R39.

Figure 7: Public Transport Network

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5.5.4. NON-MOTORIZED TRANSPORT

The bulk of the population (65%) make use of non-motorised transport, making this the most important mode of transport.

The largest majority (63%) travel by foot and 2% by bicycle.

Transport Challenges

The status of the roads are poor and needs upgrading and maintenance. The need for high maintenance and operations cost are amongst the factors contributing to the problem,

Due to the fact that places of work are separated from places of residence (mostly rural areas), people have to travel long distances to employment areas and to also access some of the social facilities. The cost of and the opportunity cost of travelling are greater for the rural commuters.

SPATIAL CHALLENGES

Land Matters

Illegal occupation of land/ Land invasion

Mushrooming of informal settlements in both urban & rural areas

Lack of GIS system as well GIS officer

Lack of Land Use Inspectors/ Land Invasion controllers

Unavailability of landfill sites for refuse services in rural areas

Unavailability of sites for cemeteries

5.5.5. POLICY MATTERS

Lack of by-laws

Lack of Land Use Management Scheme (Current Standerton Town Planning Scheme 1997 is outdated)

Proposed Projects and Programmes

Land Audit (Appointment of consultant) Development of GIS System Appointment of GIS officer Appointment of Land Use Inspectors/Land Invasion Controllers Establishment of Regional Cemetery (Identification of site, Geotechnical Studies and Environmental Studies) Establishment of Morgenzon Landfill site (Identification of site, Geotechnical Studies and Environmental Studies) Development of Bulk Contribution Policy (Appointment of a consultant)

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6. CHAPTER 6: FINANCIAL VIABILITY AND MANAGEMENT

7.1. INTRODUCTION

The goal of the finance department is to be accountable, responsible and transparent budget and treasury department, whilst ensuring compliance with legislations and regulations.

In order to achieve the above goal the finance department has committed itself to do the following;

To implement council’s financial policies and resolutions To properly administer credit and debt management system To have an effective accounting management system To provide legislated reports timeously To assist the Accounting Officer to compile and administer the budget To ensure proper management of the municipal assets and liabilities. To advice the Accounting Officer and Heads of Departments on financial

matters

By;

- Develop, workshop and review financial policies in line with relevant legislation/regulations

- Ensure proper communication of council’s resolutions within the department. - Ensure accurate and reliable consumer data in municipal system - Monitor the accuracy of the monthly billing of consumers and monitor the

debtors - To administer the effective revenue collection and credit control management

system - To establish an effective customer care system for consumers - Establish and promote effective and efficient implementation of Supply Chain

Management system. - Manage the integrity of financial data into the financial system - Ensure adherence to the budget processes, implementation and monitoring

thereof. - Establish asset management unit that will implement and monitor the asset

management system.

7.2. EXECUTIVE SUMMARY

The application of sound financial management principles for the compilation of Lekwa Local Municipality’s financial plan is essential and critical to ensure that the Municipality remains financially viable and that municipal services are provided sustainably, economically and equitably to all communities.

The 2015 Budget Review notes that the global economic outlook has weakened and the pattern of slow growth is likely to persist, with consequences for all developing economies. South Africa’s gross domestic product (GDP) forecast for 2015 has also been revised down. The National Treasury projects GDP growth of 2 per cent in 2015, rising to 3 per cent by 2017. Average growth over the forecast period is 0.4 percentage points lower than at the time of the 2014 Medium Term Budget

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Policy Statement. Inadequate electricity supply, however, will impose a serious constraint on output and exports over the short term.

The slowdown in economic growth since 2012 has highlighted structural constraints in the domestic economy. Achieving faster sustainable growth and large-scale job creation will require structural shifts in the economy, stronger supply-side value chains, higher exports, moderation in wage increases and, crucially, growing private-sector investment based on confidence in the long-term business environment.

Fiscal constraints mean that transfers to municipalities will grow more slowly in the period ahead than they have in the past. Accordingly, municipalities must renew their focus on core service delivery functions and reduce costs without adversely affecting basic services. Furthermore they must ensure that efficiency gains, eradication of non-priority spending (cost containment measures) and the reprioritisation of expenditure relating to core infrastructure continue to inform the planning framework.

The state of the economy has an adverse effect on the consumers. As a result municipalities’ revenues and cash flows are expected to remain under pressure. Furthermore municipalities should carefully consider affordability of tariff increases, especially as it relates to domestic consumers while considering the level of services versus the associated cost.

The 2015/16 MTREF is an important milestone for the current Municipal Council bearing in mind the council commenced their term with a deficit on the budget for operations, accumulated debts under investment in repairs and maintenance of infrastructure amongst other challenges.

During the recently held strategic session certain key issues were raised that required to be incorporated in the 2015/16 MTREF, the issues included amongst others:

Ageing infrastructure Water Treatment Plant & Water Reticulation

Problems with water quality due to seasonal algae

High mast lights and street lights not functional

Our roads are not good 185km roads that are still gravel.

Skills shortage

Inadequate income for operational purposes

The ongoing difficulties in the national and local economy

The increased cost of bulk water and electricity (due to tariff increases from Rand Water and Eskom), which is placing upward pressure on service tariffs to residents. Continuous high tariff increases are not sustainable - as there will be point where services will no-longer be affordable;

Inability to attract and sustain investors

Poor relationship between the Municipality and Business community

Interruption of water supply, electricity supply and refuse removal Challenges identified above should be confronted with velocity of a bull. Failure to do so would create pitfalls that would be insurmountable where in some instances public representatives would be treated like lepers within the community they ought to serve. The municipality undertook the project of revenue enhancement, data cleansing as well as to implement credit control which assisted in ensuring the completeness of the revenue generated from service charges. Personnel will be appointed to test completeness and accuracy of revenue as well as to provide assurance. The effective implementation of credit control still remains a challenge due to lack of adequate resources to ensure continuous implementation. The municipality has

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further appointed a service provider to deal with revenue loss from sales of electricity through on line meters as well as to deal with revenue loss from sale of water through the water demand and conservation programme.

The Municipality must strive, within its financial and administrative capacity, to ensure that the provision of services to communities in a sustainable manner. The following budget principles and guidelines directly informed the compilation of the 2015/16 MTREF:

The 2014/15 Adjustments Budget priorities and targets, as well as the base line allocations contained in that Adjustments Budget were adopted as the upper limits for the new baselines for the 2015/16 annual budget;

The 2013/14 audit come

The 2014/15 mid-year assessment

Annual Strategic planning session outcome

Vision 2030 in the National Development Plan (NDP)

Tariff and property rate increases should be affordable and should generally not exceed inflation as measured by the CPI, except where there are price increases in the inputs of services that are beyond the control of the municipality, for instance the cost of bulk water and electricity. In addition, tariffs need to remain or move towards being cost reflective, and should take into account the need to address infrastructure backlogs;

There will be no budget allocated to national and provincial funded projects unless the necessary grants to the municipality are reflected in the national and provincial budget and have been gazetted as required by the annual Division of Revenue Act;

7.3. 2015/16 MEDIUM-TERM REVENUE & EXPENDITURE FRAMEWORK In view of the aforementioned, the following table is a consolidated overview of the proposed 2015/16 Medium-term Revenue and Expenditure Framework: Table 1 Consolidated Overview

MP305 Lekwa - Table A4 Budgeted Financial Performance (revenue and expenditure)

Description 2011/12 2012/13 2013/14

R thousandAudited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Budget

Year

2015/16

Budget Year

+1 2016/17

Budget

Year +2

2017/18

Total Revenue (excluding

capital transfers and

343 115 431 172 422 526 490 216 536 829 641 288 698 413 763 739

Total Expenditure 464 933 628 264 617 479 683 050 633 739 730 140 753 301 781 990

Surplus/(Deficit) (121 818) (197 092) (194 953) (192 834) (96 910) (88 851) (54 888) (18 251)

Current Year 2014/152015/16 Medium Term Revenue &

Expenditure Framework

The operating income has increased from R 343 million in the 2011/12 financial period to R 641 million in the 2015/16 financial period. This reflects a growth of R 298 million over the 5 years period. The revenue is still expected to increase to R 763 million by 2017/18 financial period. The

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expenditure has also seen an increase of R 266 million over the past 5 year period from R 464 million in the 2011/12 financial period to R 730 million in the 2015/16 financial period. The expenditure is expected to increase with an additional R 51 million by 2017/18. The operating deficit has also decreased with R 33 million over the 5 year period from R 121 million to R 88 million in the 2015/16 financial year and subsequently it is further expected to decrease to R 18 million by 2017/18 MTREF. This is possible through vigorous financial management which include revenue and expenditure management whilst ensuring that operations are economical, effective and efficient.

The capital budget of R 32 million is funded mostly from grants & subsidies received from National Government. The capital budget has declined over the years from R 44 million in the 2011/12 financial period. This is further influenced by the reduction in allocation of grants from the National Government as well as the municipality to generate adequate surpluses which could be utilised as reserves for funding internal projects. The reduction in the capital grant allocations has further placed a burden in the Municipality’s operations thus resulting in service delivery backlogs. For cash generating assets the Municipality should consider raising a debt for acquiring and financing these sorts of assets as the revenue generated can be utilised towards servicing this debt.

7.4. OPERATING REVENUE FRAMEWORK

The Municipality continues improving the quality of services provided to its citizens it needs to generate the required revenue. In these tough economic times strong revenue management is fundamental to the financial sustainability of every municipality. The reality is that we are faced with development backlogs and poverty. The expenditure required to address these challenges will inevitably always exceed available funding; hence difficult choices have to be made in relation to tariff increases and balancing expenditures against realistically anticipated revenues. Since the operating overheads exceeds the revenue it is crucial for the Municipality to start operating differently and investing more time and efforts in other revenue generating mechanisms.

Municipal revenues and cash flows are expected to remain under pressure in 2015/16 due to the state of the economy; therefore the municipality should adopt a conservative approach when projecting their expected revenues and cash receipts. Municipality should also pay particular attention to managing all revenue and cash streams effectively, by paying particular attention to their revenue management processes and procedures.

The total anticipated revenue to be generated amounts to R 641 287 674 which will increase to R 763 739 406 in the 2017/18 financial period. The increase in revenue is attributable to the implementation in the new general valuation roll, expected in growth in electricity from the installation of on line meters, as well as the increased revenue from the agencies fees. The other revenue mix does not yield a significant growth.

The municipality undertook the project of revenue enhancement, data cleansing as well as to implement credit control which assisted in ensuring the completeness of the revenue generated from service charges. Personnel will be appointed to test completeness and accuracy of revenue as well as to provide assurance. The effective implementation of credit control still remains a challenge due to lack of adequate resources to ensure continuous implementation. It should be noted that electricity contributes a large portion to the total municipal revenue and the Municipality cannot always rely on revenue from sale of electricity as the only means of funding the budget. The current high increases in tariffs, the use of alternative energy sources as well as the rolling load shedding will affect the revenue realised from this revenue source.

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Adequate revenue management remains an integral part of the operations of the Municipality as this will assist in rendering of decent level of services to the community of Lekwa. The Municipality should further investigate other means and mechanism of ensuring that all services rendered by the Municipality yield significant revenue to ensure that operations are continuous.

The municipality’s revenue strategy is built around the following key components:

National Treasury’s guidelines and macroeconomic policy;

Growth in the Municipality and continued economic development through private sector investment;

Efficient revenue management, which aims to ensure a 80 per cent annual collection rate for key service charges;

Electricity tariff increases as approved by the National Electricity Regulator of South Africa (NERSA);

Achievement of full cost recovery of specific user charges especially in relation to trading services;

Revenue enhancement Strategy:

The municipality’s Property Rates Policy approved in terms of the Municipal Property Rates Act, 2004 (Act 6 of 2004) (MPRA);

Revenue management policies of the Municipality

Continuous implementation of credit control and debt collection.

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Summary of revenue classified by main revenue source


Description 2011/12 2012/13 2013/14

R thousandAudited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Budget

Year

2015/16

Budget

Year +1

2016/17

Budget

Year +2

2017/18

Revenue By Source

Property rates 37 301 66 365 38 731 52 600 60 540 64 778 69 312 74 164

Serv ice charges - electricity

rev enue 136 699 174 886 180 418 227 984 227 984 321 798 361 057 405 106

Serv ice charges - w ater rev enue 30 862 37 664 32 363 40 978 42 782 45 777 48 981 52 410

Serv ice charges - sanitation

rev enue 21 248 21 707 23 004 24 730 24 499 26 214 28 049 30 012

Serv ice charges - refuse rev enue 9 790 12 164 9 932 13 861 14 037 15 020 16 071 17 196

Rental of facilities and equipment (353) 651 564 595 589 630 675 722

Interest earned - ex ternal

inv estments 726 837 1 299 255 1 018 1 089 1 165 1 247

Interest earned - outstanding

debtors 18 450 14 110 18 273 18 200 24 262 25 960 27 778 29 722

Fines 2 166 271 1 755 2 907 502 544 590 640

Agency serv ices 12 412 18 591 31 283 16 331 48 857 52 277 55 937 59 853

Transfers recognised - operational 73 251 81 942 83 760 90 235 90 235 85 557 87 026 90 755

Other rev enue 563 1 983 1 144 1 540 1 525 1 644 1 771 1 912

Total Revenue (excluding capital

transfers and contributions)

343 115 431 172 422 526 490 216 536 829 641 288 698 413 763 739

Current Year 2014/152015/16 Medium Term Revenue

& Expenditure Framework

Revenue generated from rates and services charges forms a significant percentage of the revenue basket for the Municipality. Rates and service charge revenues comprise R 473 million (73.8%) of the total revenue mix. This increases to R 523 million and R 578 million in the respective two outer financial years of the MTREF. A notable trend is the increase in the total percentage revenue generated from rates and sale of electricity which increases from 50 per cent in 2011/12 to 60 per cent in 2015/16. This growth can be mainly attributed to the increased share that the sale of electricity contributes to the total revenue mix, which in turn is due to rapid increases in the Eskom tariffs for bulk electricity.

Property rates contribute 10 per cent or R 64 million rand of the total revenue mix and increases to R 74 million by 2017/18. The other sources of revenue is ‘other revenue’ which consists of various items such as income received from permits and licenses, building plan fees, connection fees, transport fees and advertisement fees. Departments have been urged to review the tariffs of these items on an annual basis to ensure they are cost reflective and market related.

Operating grants and transfers decreased from R 87 million for 2014-15 to R85 million in the 2015/16 financial year and steadily increases to R 90 million by 2015/16. The average growth of 6% over the 201516 MTREF is less than the 14% growth experienced in the 2011-12 MTREF. This is a clear indication that the National Government is advocating to the Municipality that they should not rely on grants received from National Government but should rather strengthen their own internal revenue generating mechanism.

The capital grants and transfer has decreased from R 56 million in 2011/12 to R 30 million in the 2015/16 MTREF. The total growth by 2017/18 is limited to R 3 million.

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The following table gives a breakdown of the various operating & capital grants and subsidies allocated to the Municipality over the medium term:

Operating Transfers and Grant Receipts MP305 Lekwa - Supporting Table SA18 Transfers and grant receipts

Description 2011/12 2012/13 2013/14

R thousandAudited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Budget

Year

2015/16

Budget

Year +1

2016/17

Budget

Year +2

2017/18

RECEIPTS:

Operating Transfers and Grants

National Government: 73 178 84 124 87 830 87 568 87 568 85 557 87 026 90 755

Local Gov ernment Equitable Share 69 959 79 068 81 320 85 034 85 034 83 027 84 444 88 022

Finance Management 1 713 1 250 1 550 1 600 1 600 1 600 1 625 1 700

Municipal Sy stems Improv ement 1 506 800 890 934 934 930 957 1 033

Other transfers/grants [insert description] – 3 006 4 070

Total Operating Transfers and Grants 73 178 84 124 87 830 87 568 87 568 85 557 87 026 90 755

Capital Transfers and Grants


Municipal Infrastructure Grant (MIG) 53 783 41 780 59 004 33 994 33 994 27 978 28 970 30 456

Neighbourhood Dev elopment Partnership 1 745

Intergrated Electrification Programme 1 389 1 500 1 500 1 700 6 000 3 000

Ex panded Public Works Programme 1 449 1 190 1 190 1 173

Other capital transfers/grants [insert desc] 25 430

Provincial Government: – – – – 20 000 – – –

Human Settlement 20 000

District Municipality: – – – – 2 000 – – –

Rising Main Project 2 000

Other grant providers: – – – – – – – –

Total Capital Transfers and Grants 56 621 43 525 84 434 36 684 58 684 30 851 34 970 33 456

TOTAL RECEIPTS OF TRANSFERS & GRANTS129 799 127 649 172 264 124 252 146 252 116 408 121 996 124 211

References



Tariff-Setting Tariff-setting is a pivotal and strategic part of the compilation of any budget. When rates, tariffs and other charges were revised, local economic conditions, input costs and the affordability of services were taken into account to ensure the financial sustainability of the Municipality. The municipality further made use of the tariff models that was provided by SALGA.

National Treasury continues to encourage municipalities to keep increases in rates, tariffs and other charges as low as possible. Municipalities must justify in their budget documentation all increases in excess of the 6 per cent upper boundary of the South African Reserve Bank’s inflation target. Excessive increases are likely to be counterproductive, resulting in higher levels of non-payment.

The percentage increases of Eskom 14.25% bulk tariffs are far beyond the mentioned inflation target. Given that these tariff increases are determined by external agencies, the impact they have

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on the municipality’s electricity and in these tariffs are largely outside the control of the Municipality. Discounting the impact of these price increases in and the fact that Municipality are only allowed and increase of up to 12% which result in lower consumer tariffs, this will erode the Municipality’s future financial position and viability hence the municipality finds itself in the current predicament it is in now.

It must also be appreciated that the consumer price index, as measured by CPI, is not a good measure of the cost increases of goods and services relevant to municipalities. The basket of goods and services utilised for the calculation of the CPI consist of items such as food, petrol and medical services, whereas the cost drivers of a municipality are informed by items such as the cost of remuneration, bulk purchases of electricity and water, petrol, diesel, chemicals, cement etc. The current challenge facing the Municipality is managing the gap between cost drivers and tariffs levied, as any shortfall must be made up by either operational efficiency gains or service level reductions.

2015/16 – 2017/18 Proposed tariff increases are as follows:

2015/16 2016/17 2017/18

Rates 6% 6% 6%

Cleansing 6% 6% 6%

Sewer 6% 6% 6%

Water Consumption 6% 6% 6%

Water Basic 6% 6% 6%

Electricity 12.2% 12.2% 12.2%

Property Rates Property rates cover the cost of the provision of general services. Determining the effective property rate tariff is therefore an integral part of the municipality’s budgeting process. National Treasury’s MFMA Circular No. 51 deals, inter alia with the implementation of the Municipal Property Rates Act, with the regulations issued by the Department of Co-operative Governance. These regulations came into effect on 1 July 2009 and prescribe the rate ratio for the non-residential categories, public service infrastructure and agricultural properties relative to residential properties to be 0.25:1. The implementation of these regulations was done in the previous budget process and the Property Rates Policy of the Municipality has been amended accordingly. The following stipulations in the Property Rates Policy are highlighted:

The first R15 000 of the market value of a property used for residential purposes is excluded from the rate-able value (Section 17(h) of the MPRA).

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For pensioners, physically and mentally disabled persons, a maximum/total rebate of 40 per cent will be granted to owners of rate-able residential property if the total gross income of the applicant and/or his/her spouse, if any, does not to exceed R 3600.

The Municipality may award a 100 per cent grant-in-aid on the assessment rates of rate-able properties of certain classes such as registered welfare organizations, institutions or organizations performing charitable work, sports grounds used for purposes of amateur sport. The owner of such a property must apply to the Executive Mayor or the Municipal Manager in the prescribed format for such a grant.

The categories of rate-able properties for purposes of levying rates and the proposed rates for the 2015/16 financial year based on a 6 per cent increase from 1 July 2015 is contained below:

CATEGORY

IMPERMISSIBLE PER PROPERTY

Current Tariff 1 July 2014 TARIFF CENTS IN THE RANDS

Proposed Tariff 1 July 2015 TARIFF CENTS IN THE RANDS

Residential 1 (houses) R 15000 0.008265 0.009844

Residential 2 (sectional share titles)

0.008265 0.009844

Multi-purpose use 0.009641 0.011483

Farms/agricultural – business

0.002066 0.002461

Agricultural properties 0.002066 0.002461

Industrial 0.009641 0.011483

Residential 4 (business) 0.009641 0.011483

Government (exl 20% rebate)

0.011191 0.013328

Public service infrastructure (psi)

0.002066 0.002461

Public benefit organization

0.002066 0.002461

Sale of Water and Impact of Tariff Increases South Africa faces similar challenges with regard to water supply as it did with electricity, since demand growth outstrips supply. Consequently, National Treasury is encouraging all municipalities to carefully review the level and structure of their water tariffs to ensure:

Water tariffs are fully cost-reflective – including the cost of maintenance and renewal of purification plants, water networks and the cost associated with reticulation expansion;

Water tariffs are structured to protect basic levels of service and ensure the provision of free water to the poorest of the poor (indigent); and

Water tariffs are designed to encourage efficient and sustainable consumption. In addition National Treasury has urged all municipalities to ensure that water tariff structures are cost reflective.

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Better maintenance of infrastructure, installation of bulk water infrastructure, replacement of AC pipes in Lekwa Local Municipality, the water conservation & demand management as well cost-reflective tariffs will ensure that the supply challenges are managed in future to ensure sustainability. A tariff increase of 6% per cent from 1 July 2015 for water is proposed. In addition 6 kℓ water per 30-day period will again be granted free of charge to all registered indigent households. A summary of the proposed tariffs for households (residential) and non-residential are as follows:

2 0 15- 16 TA R IFFS -

A N N EX U R E C SC A LE

WATER

BASIC WATER 27.94 1.68 29.62 1.78 31.39 1.88 33.28

DOMESTIC BUSINESS 1-10 KL 4.80 0.29 5.09 0.31 5.40 0.32 5.72

70101 11-25KL 5.95 0.36 6.31 0.38 6.69 0.40 7.09

70201 26-50 KL 8.63 0.52 9.15 0.55 9.69 0.58 10.28

51-9999KL 12.16 0.73 12.89 0.77 13.67 0.82 14.49

SCHOOLS & GOVERNMENT 1-10 KL 4.80 0.29 5.09 0.31 5.40 0.32 5.72

70701 11-25 KL 5.95 0.36 6.31 0.38 6.69 0.40 7.09

26-9999 KL 8.63 0.52 9.15 0.55 9.69 0.58 10.28

FARMS INSIDE MUNICIPAL BORDERS1-10 KL 5.30 0.32 5.62 0.34 5.96 0.36 6.31

70501 11-25KL 6.59 0.40 6.98 0.42 7.40 0.44 7.85

26-50 KL 9.75 0.59 10.34 0.62 10.96 0.66 11.61

51-9999KL 13.81 0.83 14.64 0.88 15.52 0.93 16.45

INDUSTRIES 070301 5.96 0.36 6.32 0.38 6.70 0.40 7.10

MORGENZON 1-10 KL 4.80 0.29 5.09 0.31 5.40 0.32 5.72

11-25KL 5.95 0.36 6.31 0.38 6.69 0.40 7.09

26-50 KL 8.63 0.52 9.15 0.55 9.69 0.58 10.28

51-9999KL 12.16 0.73 12.89 0.77 13.67 0.82 14.49

FREE WATER 6KL 26.82 1.61 28.43 1.71 30.13 1.81 31.94

2 0 14 / 2 0 15 2 0 15/ 2 0 16 2 0 16 / 2 0 17 2 0 17/ 2 0 18

7.50% 106.00% 106.00% 106.00%

Sale of Electricity and Impact of Tariff Increases NERSA has announced the revised bulk electricity pricing structure. A 14.24 per cent increase in the Eskom bulk electricity tariff to municipalities will be effective from 1 July 2015. Considering the Eskom increases, the consumer tariff had to be increased by 12.20 per cent to offset the additional bulk purchase cost from 1 July 2015. Furthermore, it should be noted that given the magnitude of the tariff increase, it is expected to depress growth in electricity consumption, which will have a negative impact on the municipality’s revenue from electricity. Registered indigents will again be granted 50 kWh per 30-day period free of charge.

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It should further be noted that NERSA has advised that Municipality should continue using the inclining block tariff structure. The effect thereof will be that the higher the consumption, the higher the cost per kWh. The aim is to subsidise the lower consumption users (mostly the poor). The inadequate electricity bulk capacity and the impact on service delivery and development remains a challenge to the Municipality. Most of the suburbs and inner city reticulation network was designed or strengthened in the early 1980’s with an expected 20-25 year life-expectancy. The upgrading of the Municipality’s electricity network has therefore become a strategic priority, especially the substations, transmission lines as well as upgrading from 55 MVA to 100 MVA. The approved budget for the Electricity Division can only be utilised for certain committed upgrade projects and to strengthen critical infrastructure. It is estimated that special funding for electricity bulk infrastructure to the amount of R 270 million per year for the next three years will be necessary to steer the Municipality out of this predicament. Owing to the high increases in Eskom’s bulk tariffs, it is clearly not possible to fund these necessary upgrades through increases in the municipal electricity tariff – as the resultant tariff increases would be unaffordable for the consumers. It is therefore proposed that the taking up of loans as a strategy for funding of the infrastructure be considered and approved to spread the burden over the life span of the assets.

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The following table shows the impact of the proposed increases in electricity tariffs.

2014/15

Budget

2015/16

Budget

1+ 2016/17

Budget

2+ 2017/18

Budget

ELECTRICITY DOMESTICS 107.39% 112.20% 114.24% 114.24%

Indigents (Low prepaid) 31.9 35.79R 40.89R 46.71R

BLOCK TARIFF 0-50 0.72R 0.79R 0.90R 1.03R



BLOCK TARIFF 601+ 1.43R 1.66R 1.90R 2.17R

Prepaid & Conventional ( High prepaid) 85.50R 95.93R 109.59R 125.20R





FREE ELECTRICITY 50 KWH 36.13 40.54R 46.31R 52.91R

NGO, SPORT CLUB, PRE PAID BASIC CHARGE 85.50R 40.65R 46.44R 53.05R





Prepaid & Conventional (single phase) 0-16kVA

Energy Charge (Low Demand season) 138.00R 154.84R 176.88R 202.07R

Energy Charge (High Demand season) 172.00R 192.98R 220.46R 251.86R

Basic Charge 212.07R 237.94R 271.83R 310.53R

Prepaid & Conventional (2 & 3 phase)



Basic Charge 483.00R 541.93R 619.10R 707.26R

INDUSTRIAL TARIFFS

Low Voltage Use Below 1MVA



Demand Charge (Low Demand season) 176.00R 197.47R 225.59R 257.72R

Demand Charge (High Demand season) 183.20R 205.55R 234.82R 268.26R

Basic Charge 3 359.21R 3 769.03R 4 305.74R 4 918.88R

High Voltage Use Above 1MVA



Demand Charge (Low Demand season) 173.42R 194.58R 222.29R 253.94R

Demand Charge (High Demand season) 183.20R 205.55R 234.82R 268.26R

Basic Charge 3 359.21R 3 769.03R 4 305.74R 4 918.88R

Current Proposed Year MTREF

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Sanitation and Impact of Tariff Increases A tariff increase of 6 per cent for sanitation from 1 July 2015 is proposed.

2015-16 TARIFFS - ANNEXURE C SCALE

SEWERAGE

DOMESTIC, BUSINESS 133.62 8.02 141.64 8.50 150.13 9.01 159.14

SAKHILE 75.34 4.52 79.86 4.79 84.66 5.08 89.74

MORGENZON 48.90 2.93 51.84 3.11 54.95 3.30 58.25

INDUSTRIAL - ADDITIONAL SEWERAGE PER KL 5.42 0.33 5.74 0.34 6.09 0.37 6.45

2014/201

5 2015/2016 2016/2017 2017/2018

106.00% 106.00% 106.00%

Waste Removal and Impact of Tariff Increases Currently solid waste removal is not operating effectively, efficiently and economically. It is widely accepted that the rendering of this service should at least break even, which is currently not the case. The Municipality will have to implement a solid waste strategy to ensure that this service can be rendered in a sustainable manner over the medium to long-term. The main contributors to this deficit are repairs and maintenance on vehicles, increases in the employee related cost (overtime). A 6 per cent increase in the waste removal tariff is proposed from 1 July 2015. Higher increases will not be viable in 2015/16 owing to the significant increases implemented in previous financial years as well as the overall impact of higher than inflation increases of other services.

2015-16 TARIFFS - ANNEXURE C

REFUSE

DOMESTIC - STANDERTON 85.09 5.11 90.20 5.41 95.61 5.74 101.35

DOMESTIC - SAKHILE 60.80 3.65 64.45 3.87 68.32 4.10 72.42

DOMESTIC - MORGENZON 59.67 3.58 63.25 3.79 67.04 4.02 71.07

BUSINESS - STANDERTON 222.88 13.37 236.26 14.18 250.43 15.03 265.46

BUSINESS - MORGENZON 118.59 7.12 125.70 7.54 133.25 7.99 141.24

BULK 1256.08 75.36 1331.44 79.89 1411.33 84.68 1496.01

VACUUM TANKS PER 5KL OR PART THEREOF40.22 2.41 42.63 2.56 45.19 2.71 47.90

VACCUM TANKS BASIC CHARGE 283.58 17.01 300.59 18.04 318.63 19.12 337.75

2014/2015 2015/2016 2016/2017 2017/2018

7.50% 106.00% 106.00% 106.00%

Overall impact of tariff increases on households The following table shows the overall expected impact of the tariff increases on a large and small household, as well as an indigent household receiving free basic services.

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MP305 Lekwa - Supporting Table SA14 Household bills

2011/12 2012/13 2013/142015/16 Medium Term Revenue & Expenditure

Framework

Audited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Budget

Year

2015/16

Budget

Year

2015/16

Budget

Year +1

2016/17

Budget

Year +2

2017/18

Rand/cent % incr.

Monthly Account for Household

- 'Middle Income Range'

Rates and services charges:

Property rates 404.48 106.18 111.55 119.92 119.92 106.0% 127.12 145.22 165.90

Electricity : Basic lev y 64.25 71.34 76.55 82.20 82.20 112.2% 92.23 105.37 120.37

Electricity : Consumption 940.50 1 045.00 1 121.29 1 204.15 1 204.15 112.2% 1 351.05 1 543.44 1 763.23

Water: Basic lev y 23.54 24.61 25.86 27.79 27.79 106.0% 29.46 33.66 38.45

Water: Consumption 157.68 166.80 175.24 188.38 188.38 106.0% 199.69 228.12 260.61

Sanitation 111.96 117.71 123.67 132.94 132.94 106.0% 140.92 160.98 183.91

Refuse remov al 49.23 57.48 60.39 64.92 64.92 106.0% 68.81 78.61 89.81

sub-total 1 751.64 1 589.12 1 694.54 1 820.31 1 820.31 10.4% 2 009.28 2 295.40 2 622.27

VAT on Serv ices

Total large household bill: 1 751.64 1 589.12 1 694.54 1 820.31 1 820.31 10.4% 2 009.28 2 295.40 2 622.27

% increase/-decrease (9.3%) 6.6% 7.4% – 10.4% 14.2% 14.2%

Monthly Account for Household

- 'Affordable Range'


Property rates 288.92 75.84 79.64 85.61 85.61 106.0% 90.75 103.67 118.43


Electricity : Consumption 445.50 495.00 531.14 570.39 570.39 112.2% 639.97 731.11 835.21

Water: Basic lev y 23.54 24.61 25.86 27.79 27.79 106.0% 29.46 33.66 38.45


Sanitation 111.96 117.71 123.67 132.94 132.94 106.0% 140.92 160.98 183.91

Refuse remov al 49.23 57.48 60.39 64.92 64.92 106.0% 68.81 78.61 89.81

sub-total 1 108.23 974.03 1 035.96 1 112.99 1 112.99 9.6% 1 220.23 1 393.99 1 592.49

VAT on Serv ices

Total small household bill: 1 108.23 974.03 1 035.96 1 112.99 1 112.99 9.6% 1 220.23 1 393.99 1 592.49

% increase/-decrease (12.1%) 6.4% 7.4% – 9.6% 14.2% 14.2%

-1.53 0.17 -1.00 Monthly Account for Household

- 'Indigent' Household receiving


Property rates 173.35 182.03 192.22 206.63 206.63 106.0% 219.03 250.22 285.85


Electricity : Consumption – 112.2% – – –

Water: Basic lev y 23.54 24.61 25.86 – 106.0% – – –


Sanitation 111.96 117.71 124.30 133.49 133.49 106.0% 141.50 161.65 184.66

Refuse remov al 45.58 57.48 60.39 – 106.0% – – –

sub-total 475.10 515.44 544.92 492.78 492.78 7.1% 527.65 602.79 688.63

VAT on Serv ices 34.86 36.97

Total small household bill: 509.96 552.41 544.92 492.78 492.78 7.1% 527.65 602.79 688.63

% increase/-decrease 8.3% (1.4%) (9.6%) – 7.1% 14.2% 14.2%

Description

Current Year 2014/15

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Operating Expenditure Framework

The budget expenditure framework for the 2015/16 budget is informed by the following:

Repairs and maintenance backlogs;

Balancing the budget (operating expenditure should not exceed operating revenue unless there are existing uncommitted cash-backed reserves to fund any deficit);

Funding of the budget over the medium-term as informed by Section 18 and 19 of the MFMA;

Strict adherence to the principle of no project plans no budget. If there is no business plan no funding allocation can be made.

Funding the capital budget and other core services by operational gains and efficiencies. The total anticipated expenditure to be incurred amounts to R 730 138 719.

In line with MFMA circular 55 & 70 the municipality is urged to step up its efforts to combat waste, inefficiency and pay special attention to cost containing measures and controlling unnecessary spending on nice-to-have items and non-essential activities. This should be done in conjunction with the cabinet resolution of the 23th October 2013 that cost containment measures must be implemented to eliminate waste, reprioritize spending and ensure savings on six focus areas namely, consultancy fees, no credit cards, travel and related costs, advertising, catering and events costs as well as costs for accommodation. Due to the financial constraints of the municipality though a provision has been made for depreciation the municipality does not have sufficient cash to replace the aging assets after the depreciation has been written off. In terms of the norms and standard set by National Treasury the municipality should provide at least 8% for Repairs and Maintenance and at least 40% of the capital budget should be towards the renewal of existing assets.


Description 2011/12 2012/13 2013/14

R thousandAudited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Budget

Year

2015/16

Budget

Year +1

2016/17

Budget

Year +2

2017/18

Expenditure By Type

Employ ee related costs 101 586 114 990 117 725 127 068 123 424 145 767 155 136 165 130

Remuneration of councillors 7 889 8 417 9 367 10 503 10 503 11 136 11 136 11 136

Debt impairment 39 082 77 099 47 227 90 818 68 362 68 915 70 983 73 467

Depreciation & asset 60 891 121 508 128 005 139 196 115 520 95 530 98 396 101 840

Finance charges 1 176 14 219 16 757 764 771 786 810 838

Bulk purchases 167 691 186 519 198 026 213 085 213 085 242 748 250 030 258 781

Other materials 4 154 2 995 4 798 5 089 5 820 5 296 5 472 5 689

Contracted serv ices 21 854 23 250 23 224 26 340 39 019 97 325 98 520 99 835

Transfers and grants 20 898 41 647 14 535 11 393 5 105 2 108 2 171 2 247

Other ex penditure 39 713 37 621 57 814 58 793 52 129 60 528 60 646 63 026

Loss on disposal of PPE




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Employee related Cost The employee related costs have increased by R 22 million in order to fund technical or critical positions that are vacant. The salary increase negotiations are still underway, a provision for salary increases of 6.8% though National Treasury is proposing a 5.4% increase which is linked to inflation. The past salary increase have not been less than 6% or higher than 10% in the recent years. Any difference in the salary increase that is below 6.8% or higher than 6.8% will be provided for in the 2015-16 adjustment budgets. Furthermore it should be noted that the filling of vacant positions also attracts other cost associated with filling of those which includes but not limited to advertising cost, office equipment and office space. While priorities will still be given to position that have in impact on service delivery, preference will also be given to positons that will reduce overtime. The current Municipal structure in order to ensure the following:

1. The structure is still relevant 2. The structure is responsive to service delivery 3. Identify any gaps or areas of over staffing

The overtime worked by employees continuous to be a challenge that the municipality is faced with. Employees continue to work in excess of 40 hours per month which is in contravention of the collective agreements and this further poses further risk to the municipality which includes but not limited to financial loss suffered for irregular payments of overtime, due to fatigue employees may be injured whilst at work. The provision for overtime is R 10 million for the 2015-16 financial period which is expected to increase to R 12 million in the 2017-18 financial period. The allocation shows a decrease when compared to the 2011-12 outcomes as well as the adjustment budget of 2014-15. The low allocation is mainly based on the introduction of job cards which employees would have to complete every day as well as ensuring that employees are discouraged from working overtime in excess of 40 hours per month.

The Municipality has provided R 21.7 million to fill critical and vacant position which will have a direct impact on service delivery, efficient, and optimal administration of the Municipality. There are 71 vacant and critical position that require to be filled urgently. The recruitment turnaround time needs to be improved as some of the positions have been vacant in excess of 12 months.

The Municipality has provided R 2.5 million for the employment of temporary workers, of which they should either be confirmed as permanent workers or laid off in terms of the amended labor relations act.

An 8% increase has been provided for the Council Remuneration in line with the Officer Bearers Act as well as the recent Council Upper Limit Gazette.

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MP305 Lekwa - Supporting Table SA22 Summary councillor and staff benefits

Summary of Employee and

Councillor remuneration2011/12 2012/13 2013/14

R thousandAudited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Budget Year

2015/16

Budget Year

+1 2016/17

Budget Year

+2 2017/18

A B C D E G H I

Councillors (Political Office Bearers plus Other)

Basic Salaries and Wages 4 714 4 375 5 079 6 308 6 308 6 858 6 858 6 858

Pension and UIF Contributions 824 1 055 949 946 946 1 029 1 029 1 029

Medical Aid Contributions 127 191 313 –

Motor Vehicle Allow ance 1 830 1 975 2 107 2 407 2 407 2 407 2 407 2 407

Cellphone Allow ance 387 803 480 669 669 669 669 669

Other benefits and allow ances 6 19 439 173 173 173 173 173

Sub Total - Councillors 7 889 8 417 9 367 10 503 10 503 11 136 11 136 11 136

% increase 6.7% 11.3% 12.1% – – – –

Senior Managers of the Municipality


Pension and UIF Contributions 816 922 922 967 1 030 1 097

Medical Aid Contributions 326 326 325 346 368

Motor Vehicle Allow ance 107 228 228 128 136 145

Other benefits and allow ances – 83 88 94

Sub Total - Senior Managers of Municipality1 917 5 339 3 664 6 304 7 190 6 875 7 322 7 798

% increase 178.5% (31.4%) 72.1% 14.0% – 6.5% 6.5%

Other Municipal Staff


Pension and UIF Contributions 12 348 16 835 13 972 16 651 15 332 18 627 19 838 21 128

Medical Aid Contributions 5 866 4 747 6 631 6 997 7 183 6 971 7 424 7 906

Ov ertime 13 704 5 127 13 993 10 712 14 214 10 697 11 392 12 133

Motor Vehicle Allow ance 4 894 3 347 3 586 5 730 5 964 4 044 4 307 4 587

Cellphone Allow ance 1 580 155 669 740 115 123 131

Housing Allow ances 381 436 328 405 428 456 485

Other benefits and allow ances 2 464 1 964 2 892 3 496 3 448 3 464 3 690 3 929

Pay ments in lieu of leav e 623 221 – 372 396 422

Long serv ice aw ards 1 192 245 520 1 447 457 1 411 1 502 1 600

Sub Total - Other Municipal Staff 91 781 101 234 114 062 120 991 116 177 138 892 147 920 157 535

% increase 10.3% 12.7% 6.1% (4.0%) – 6.5% 6.5%



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Depreciation and Debt Impairment Though this are not cash items all efforts should be made to ensure that this items are cash backed. Debt impairment relates to revenue that could be collected from customer. The debt impairment provision is R 68 million with the view that the current systems put in place to ensure that credit control and debt collections are implemented continuously and without compromise. The provision for debt impairment is based on an average none collection of revenue of 29% of the service charges generated. Depreciations relates to the reduction in the useful life assets over time. The depreciation should be cash backed to allow for the municipality to be to replace the assets once the determined useful life of the assets has been depleted. The depreciation provision is R 95 million. This further indicates that additional provision should be made for the assets renewal as well as repairs and maintenance. Bulk Purchases MP305 Lekwa - Table A4 Budgeted Financial Performance (revenue and expenditure)

Description 2011/12 2012/13 2013/14

R thousandAudited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Budget

Year

2015/16

Budget

Year +1

2016/17

Budget

Year +2

2017/18

Expenditure By Type

Bulk purchases 167 691 186 519 198 026 213 085 213 085 242 748 250 030 258 781



Bulk purchases has increased with 44% (R 75 million) from R 167 million in 2011-12 financial period to R 242 million in the 2015-16 financial period. The high increase is mainly on the electricity bulk purchases were Eskom is continuously provided an increase above 6%. Other Materials and Repairs and Maintenance Though the level of inventory has decreased a provision is made to have inventory in hand. A provision for inventory amounting to R 5 million has been made in order to reduce interruption that might arise as a result of delays in procuring materials in instance where there’s a breakdown. Though the operating budget has been reduced immensely but no sufficient provision has been made for repairs and maintenance of the municipal assets. In terms of NT circular 66 and 70 repairs and maintenance as a percentage of PPE (carrying value) should be at 8%. Though the repairs & maintenance should contribute 8% the Though the repairs & maintenance is steadily growing R 15 million in the 2011-12 audit outcome to R 31 million in the 2015-6 budget . The percentage for the 2015/16 budget is below the prescribed norm. The main reason for this non-compliance is the current cash flow problem at the Municipality in terms of which expenditure inclusive of repairs and maintenance has been reduced in line with realistically expected revenue streams. This is not sustainable in the medium to long term and the Municipality needs to address this as matter of urgency.

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MP305 Lekwa - Supporting Table SA34c Repairs and maintenance expenditure by asset class

Description 2011/12 2012/13 2013/14

R thousandAudited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Budget

Year

2015/16

Budget

Year +1

2016/17

Budget

Year +2

2017/18

Repairs and maintenance expenditure by Asset Class/Sub-class

Infrastructure 8 147 6 919 23 869 9 845 12 585 18 751 17 164 17 159

Infrastructure - Road transport 1 380 557 8 435 1 386 1 685 2 000 – –

Roads, Pavements & Bridges 1 380 557 8 435 1 386 1 685 2 000 – –

Infrastructure - Electricity 3 798 3 413 9 374 5 360 7 800 12 700 12 991 12 841

Transmission & Reticulation 3 474 3 035 8 990 4 440 6 000 9 700 9 991 10 341

Street Lighting 324 378 384 920 1 800 3 000 3 000 2 500

Infrastructure - Water 1 836 2 209 2 197 2 250 2 650 3 551 3 658 3 786

Reticulation 1 836 2 209 2 197 2 250 2 650 3 551 3 658 3 786

Infrastructure - Sanitation 1 132 740 3 863 850 450 500 515 533

Sewerage purification 1 132 740 3 863 850 450 500 515 533

Other assets 7 086 6 678 7 210 7 048 7 368 8 973 8 365 8 907

General v ehicles 3 585 2 466 4 361 3 100 3 088 3 037 3 195 3 563

Specialised v ehicles – – – – – – – –

Plant & equipment 1 590 1 306 1 834 2 004 2 118 2 650 1 937 2 019

Computers - hardw are/equipment 254 13 29 52 30 31 32 33

Furniture and other office equipment 21 4 12 –

Other Buildings 432 336 169 268 255 476 339 357

Other Land 356 1 28 –

Other 848 2 553 816 1 585 1 877 2 780 2 862 2 935

Intangibles 521 260 327 515 545 3 699 3 810 3 944

Computers - softw are & programming 521 260 327 515 545 3 699 3 810 3 944

Other (list sub-class)

Total Repairs and Maintenance Expenditure15 754 13 857 31 406 17 408 20 498 31 423 29 339 30 010



Contracted Services Contracted services amounts to R 97 million include a provision of R 70 million for the repayment of the smart meters. Routine work been outsourced to service providers as well as an absence of service level agreements governing some contracts. This also indicates that the municipality has an over reliance on consultants to perform the routine work. This is also influenced by high vacant positions of personnel in various sections, inadequate competency levels of current employees. Contracts should be reviewed to ensure that there’s value for money and where found lacking contracts need to be terminated or advertised to appoint new service providers. In general Municipalities are required to phase out consultants as far as possible. Furthermore as part of phasing out consultants the municipality should embark on an exercise for skills audit to identify were there are skills gaps and shortages in order to ensure that adequate and relevant capacity is provided to employees. The process of preparing job descriptions, delegations register and procedure manuals is completed as in most cases consultants are used in arears were no specific person is assigned to carry out the specific duties.

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Contracted services can be an effective, efficient and economical means of rendering services as this allow for a concentration of skills, professionalism & expertise but the process should be managed closely as to ensure this practice is not perpetuate indefinitely and become costly. Operating Deficit The operating deficit has also decreased with R 33 million over the 5 year period and is further expected to decrease to R 18 million by 2017-18 MTREF.


Description 2011/12 2012/13 2013/14

R thousandAudited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Budget

Year

2015/16

Budget Year

+1 2016/17

Budget

Year +2

2017/18

Total Revenue (excluding

capital transfers and

343 115 431 172 422 526 490 216 536 829 641 288 698 413 763 739


Surplus/(Deficit) (121 818) (197 092) (194 953) (192 834) (96 910) (88 851) (54 888) (18 251)



It should be noted that it is possible to further reduce the budget without affecting service delivery. This budget should be seen as a survival budget. Unless the municipality can improve its revenue bases the situation will continue to deteriorate. In terms of National Treasury the municipality may budget for operating deficit over the medium term, however this should be temporary circumstances especially in for current implementation of GRAP 17, which may result in increased “depreciation and asset impairment‟ that is not fully accommodated in the municipality’s tariffs and as a result drives the operating budget into deficit. Ideally the operating deficit should be equivalent to the depreciation then gradually be phased off into a moderate surplus in the future. It will take approximately 24 months for the municipality to stabilize the financial position and have at least a funded budget. This will not cover any arrears amounts as well as any additional crisis expenditure (impetuous repairs & maintenance of assets or any other expenditure that is not planned). For the municipality to stabilize the financial situation it will require commitment, dedication from both officials, councilors as well as the communities at large. Provincial Treasury & COGTA have also committed to assisting the municipality in various revenue enhancing strategies. It is also important to have designated personnel assigned specific responsibilities with clear time frames and also to have continuity in administration and leadership positions.

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Capital expenditure

Project Description

Total Planned

Expenditure for

2015/2016

Planned Expenditure

for 2016/2017

Planned

Expenditure for

2017/2018

Upgrading of the Standerton Waste

Water Treatment Works 15 000 000.00R 15 000 000.00R 15 000 000.00R

Installation of Bulk Water Infrastructure

and Replacement of AC pipes in Lekwa

Local Municipality 9 000 000.00R 9 000 000.00R 9 933 200.00R

Installation of Boreholes in Lekwa

Municipality in farm areas 1 500 000.00R 1 870 150.00R 2 000 000.00R

Installation of Sanitation services in Rural

areas of Lekwa LM 1 306 150.00R 2 000 000.00R 2 000 000.00R

Electrification of RDP house in Standerton

Extension 8 1 700 000.00R

Development of New Cemetry for Lekwa

LM 623 000.00R

Rehabilitation of River Park 550 000.00R

Electrification of 53 rural houses 1 500 000.00R

Conduct Environmental Impact

Assessment for Development of a New

Cell at Morgenzon Landfill Site 1 000 000.00R

Total 32 179 150.00R 27 870 150.00R 28 933 200.00R

For 2015/16 an amount of R 24 million has been appropriated for the development of infrastructure which represents 74.5 per cent of the total capital budget. In the outer years this amount totals R 24 million, 86.11 per cent and R 24.9 million, 86.17 per cent respectively for each of the financial years. The Municipality continue to invest its resources on Water & Sanitation projects. 74.5% of the 2015-16 budgets is allocated for renewal of existing assets. The allocation towards renewal of existing assets will increase to 86.17% by 2017-18 financial periods. Some of the salient projects to be undertaken over the medium-term includes, amongst others:

Upgrading of the Standerton Waste Water Treatment Works

Installation of Bulk Water Infrastructure and Replacement of AC pipes.

Installation of Boreholes in farm areas

Installation of Sanitation services in rural areas.

Electrification of RDP house in Standerton Extension 8

Development of New Cemetery.

Rehabilitation of River Park

Electrification of 53 rural houses

Conduct Environmental Impact Assessment for Development of a New Cell at Morgenzon Landfill Site

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Annual Budget Tables The following pages present the ten main budget tables as required in terms of section 8 of the Municipal Budget and Reporting Regulations. These tables set out the municipality’s 2015/16 budget and MTREF as approved by the Council. Each table is accompanied by explanatory notes on the facing page. MBRR Table A1 - Budget Summary 1. Table A1 is a budget summary and provides a concise overview of the Municipality’s budget

from all of the major financial perspectives (operating, capital expenditure, financial position, cash flow, and MFMA funding compliance).

2. The table provides an overview of the amounts approved by Council for operating performance, resources deployed to capital expenditure, financial position, cash and funding compliance, as well as the municipality’s commitment to eliminating basic service delivery backlogs.

3. Financial management reforms emphasises the importance of the municipal budget being funded. This requires the simultaneous assessment of the Financial Performance, Financial Position and Cash Flow Budgets, along with the Capital Budget.

4. The Cash backing/surplus reconciliation shows that in previous financial years the municipality was not paying much attention to managing this aspect of its finances, and consequently many of its obligations are not cash-backed. These places the municipality in a very vulnerable financial position, as the recent slow-down in revenue collections highlighted. Consequently Council has taken a deliberate decision to ensure adequate cash-backing for all material obligations. This cannot be achieved in one financial year. But over the MTREF there is progressive improvement in the level of cash-backing of obligations. It is anticipated that the goal of having all obligations cash-back will be achieved by 2017/18.

5. Even though the Council is placing great emphasis on securing the financial sustainability of the municipality, this is not being done at the expense of services to the poor.

183 | P a g e F I N A L I D P 2 0 1 5 / 1 6

Description 2011/12 2012/13 2013/14

R thousandsAudited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Budget

Year

Budget

Year +1

Budget

Year +2

Financial Performance

Property rates 37 301 66 365 38 731 52 600 60 540 64 778 69 312 74 164

Serv ice charges 198 599 246 422 245 717 307 553 309 302 408 808 454 158 504 724

Inv estment rev enue 726 837 1 299 255 1 018 1 089 1 165 1 247


Other ow n rev enue 33 238 35 606 53 019 39 573 75 735 81 057 86 751 92 849



343 115 431 172 422 526 490 216 536 829 641 288 698 413 763 739

Employ ee costs 101 586 114 990 117 725 127 068 123 424 145 767 155 136 165 130


Depreciation & asset impairment 60 891 121 508 128 005 139 196 115 520 95 530 98 396 101 840

Finance charges 1 176 14 219 16 757 764 771 786 810 838

Materials and bulk purchases 171 845 189 514 202 824 218 175 218 906 248 044 255 503 264 471




Surplus/(Deficit) (121 818) (197 092) (194 953) (192 834) (96 910) (88 851) (54 888) (18 251)

Surplus/(Deficit) after capital

transfers & contributions

(121 818) (197 092) (194 953) (192 834) (96 910) (88 851) (54 888) (18 251)

Surplus/(Deficit) for the year (121 818) (197 092) (194 953) (192 834) (96 910) (88 851) (54 888) (18 251)

Capital expenditure & funds sources

Capital expenditure 44 115 35 449 – 34 784 78 900 32 179 27 870 28 933

Transfers recognised - capital 40 950 31 212 – 33 484 73 350 29 679 27 870 28 933

Internally generated funds 3 165 4 238 – 1 300 5 550 2 500 – –

Total sources of capital funds 44 115 35 449 – 34 784 78 900 32 179 27 870 28 933

Financial position

Total current assets 76 384 78 726 120 472 130 670 130 670 220 731 280 585 336 402

Total non current assets 1 992 218 1 906 016 1 788 186 1 808 527 1 808 527 1 680 528 1 612 898 1 543 481

Total current liabilities 181 422 278 322 372 817 321 639 321 639 404 595 440 537 435 709

Total non current liabilities 89 260 92 289 101 382 94 269 94 269 111 520 122 672 134 939

Community w ealth/Equity 1 797 920 1 614 132 1 434 460 1 523 288 1 523 288 1 385 144 1 330 274 1 309 235

Cash flows

Net cash from (used) operating 43 310 25 247 60 064 (20 653) (1 156 825) 22 340 54 988 91 186

Net cash from (used) inv esting (35 331) (22 217) (47 105) (34 784) (78 900) (32 179) (27 870) (28 933)

Net cash from (used) financing (1 647) (1 285) (1 102) – – – – –

Cash/cash equivalents at the year end 15 273 17 017 28 874 (25 470) (1 181 449) 27 042 54 159 116 412

Cash backing/surplus reconciliation

Cash and inv estments av ailable 15 273 16 300 29 660 34 922 34 922 51 984 94 964 132 218

Application of cash and inv estments 159 142 251 842 502 229 318 850 318 850 529 730 582 777 641 508

Balance - surplus (shortfall) (143 869) (235 543) (472 569) (283 928) (283 928) (477 746) (487 813) (509 289)

Asset management

Asset register summary (WDV) 1 992 218 1 906 016 1 788 186 1 808 527 1 808 527 1 680 528 1 612 898 1 543 481


Renew al of Ex isting Assets – – – 5 000 – 24 000 24 000 24 933

Repairs and Maintenance 15 754 13 857 31 406 17 408 20 498 31 423 29 339 30 010

MP305 Lekwa - Table A1 Budget Summary



184 | P a g e F I N A L I D P 2 0 1 5 / 1 6

MBRR Table A2 - Budgeted Financial Performance (revenue and expenditure by standard classification)

1. Table A2 is a view of the budgeted financial performance in relation to revenue and expenditure per standard classification. The modified GFS standard classification divides the municipal services into 13 functional areas. Municipal revenue, operating expenditure and capital expenditure are then classified in terms if each of these functional areas which enables the National Treasury to compile ‘whole of government’ reports.

2. Note the Total Revenue on this table does not include capital revenues (Transfers recognised – capital) and reconciles to the operating revenue shown on Table A4.

3. Note that as a general principle the revenues for the Trading Services should exceed their expenditures. The table highlights that this is the case for Electricity, Water and Waste water functions, but not the Waste management function. As already noted above, the municipality will be undertaking a detailed study of this function to explore ways of improving efficiencies and provide a basis for re-evaluating the function’s tariff structure.

4. Other functions that show a deficit between revenue and expenditure are being financed from rates revenues and other revenue sources reflected under the Corporate Services.

185 | P a g e F I N A L I D P 2 0 1 5 / 1 6

MP305 Lekwa - Table A2 Budgeted Financial Performance (revenue and expenditure by standard classification)

Standard Classification Description 2011/12 2012/13 2013/14

R thousandAudited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Budget

Year

2015/16

Budget

Year +1

2016/17

Budget

Year +2

2017/18

Revenue - Standard

Governance and administration 131 091 164 097 142 694 160 255 175 304 178 399 186 367 197 050

Ex ecutiv e and council 70 044 79 570 81 327 85 053 85 053 83 045 84 463 88 042

Budget and treasury office 60 296 84 118 60 956 73 794 88 861 94 900 101 418 108 488

Corporate serv ices 751 409 411 1 409 1 390 454 486 520

Community and public safety 431 535 1 951 3 093 707 756 809 866

Community and social serv ices (779) 357 293 306 320 342 366 391

Sport and recreation 54 18 9 12 10 10 11 12

Public safety 1 157 160 1 648 2 775 378 404 432 463

Economic and environmental services 12 460 19 554 31 440 18 565 50 732 52 464 56 137 60 067

Planning and dev elopment 10 33 20 1 715 1 721 23 25 27

Road transport 12 450 19 521 31 420 16 850 49 010 52 441 56 112 60 040

Trading services 199 134 246 986 246 441 308 302 310 087 409 668 455 099 505 757

Electricity 137 214 175 388 181 134 228 587 228 759 322 648 361 987 406 127

Water 30 875 37 705 32 365 41 115 42 785 45 780 48 985 52 414

Waste w ater management 21 248 21 718 23 004 24 731 24 499 26 214 28 049 30 012

Waste management 9 798 12 176 9 938 13 869 14 043 15 026 16 078 17 204

Total Revenue - Standard 343 115 431 172 422 526 490 216 536 829 641 288 698 413 763 739

Expenditure - Standard

Governance and administration 176 573 290 555 216 885 274 329 227 324 216 333 224 099 233 251

Ex ecutiv e and council 44 385 45 588 39 019 184 347 147 917 137 568 141 974 147 113

Budget and treasury office 116 236 229 040 162 565 74 827 61 154 60 552 63 105 66 069

Corporate serv ices 15 951 15 927 15 301 15 155 18 252 18 213 19 020 20 069

Community and public safety 37 091 38 333 35 524 37 491 41 205 38 511 40 722 43 544

Community and social serv ices 13 599 14 662 12 774 14 019 16 970 13 176 14 164 15 182

Sport and recreation 6 982 7 334 7 044 7 967 7 341 6 950 7 319 7 971

Public safety 15 712 15 804 15 446 12 632 16 606 15 069 15 718 16 650

Housing 6 7 31 2 872 83 3 106 3 305 3 517

Health 792 527 229 – 206 210 216 224

Economic and environmental services 21 039 21 416 31 613 36 699 28 481 30 192 28 836 30 621

Planning and dev elopment 332 179 1 042 5 449 4 414 7 368 7 830 8 325

Road transport 20 707 21 237 30 571 31 250 24 067 22 825 21 006 22 296

Trading services 230 230 277 960 333 456 334 531 336 729 445 103 459 643 474 574

Electricity 180 683 201 554 227 501 244 286 249 133 356 103 364 976 375 045

Water 26 846 32 002 31 171 46 684 46 417 46 096 47 716 49 599

Waste w ater management 9 651 9 481 12 522 21 046 18 617 20 418 21 343 22 376

Waste management 13 051 34 923 62 263 22 515 22 562 22 487 25 607 27 554

Total Expenditure - Standard 464 933 628 264 617 479 683 050 633 739 730 140 753 301 781 990




186 | P a g e F I N A L I D P 2 0 1 5 / 1 6

1. Table A3 is a view of the budgeted financial performance in relation to the revenue and expenditure per municipal vote. This table facilitates the view of the budgeted operating performance in relation to the organisational structure of the Municipality. This means it is possible to present the operating surplus or deficit of a vote.

MP305 Lekwa - Table A3 Budgeted Financial Performance (revenue and expenditure by municipal vote)

Vote Description 2011/12 2012/13 2013/14

R thousandAudited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Budget

Year

2015/16

Budget

Year +1

2016/17

Budget

Year +2

2017/18

Revenue by Vote

Vote 1 - Council & Ex ecutiv e 70 044 79 570 81 327 85 053 85 053 83 045 84 463 88 042

Vote 2 - Budget & Treasury 60 296 84 118 60 956 73 794 88 861 94 900 101 418 108 488

Vote 3 - Corporate 751 409 411 1 409 1 390 454 486 520

Vote 4 - Community Serv ices 431 535 1 951 3 093 707 756 809 866

Vote 5 - Roads 12 450 19 521 31 420 16 850 49 010 52 441 56 112 60 040

Vote 6 - Planning & Dev elopment 10 33 20 1 715 1 721 23 25 27

Vote 7 - Electricity 137 214 175 388 181 134 228 587 228 759 322 648 361 987 406 127

Vote 8 - Water 30 875 37 705 32 365 41 115 42 785 45 780 48 985 52 414

Vote 9 - Waste Water Management 21 248 21 718 23 004 24 731 24 499 26 214 28 049 30 012

Vote 10 - Waste Management 9 798 12 176 9 938 13 869 14 043 15 026 16 078 17 204

Total Revenue by Vote 343 115 431 172 422 526 490 216 536 829 641 288 698 413 763 739

Expenditure by Vote to be appropriated

Vote 1 - Council & Ex ecutiv e 44 385 45 588 39 019 184 347 147 917 137 568 141 974 147 113

Vote 2 - Budget & Treasury 116 236 229 040 162 565 74 827 61 154 60 552 63 105 66 069

Vote 3 - Corporate 15 951 15 927 15 301 15 155 18 252 18 213 19 020 20 069

Vote 4 - Community Serv ices 37 091 38 333 35 524 37 491 41 205 38 511 40 722 43 544

Vote 5 - Roads 20 707 21 237 30 571 31 250 24 067 22 825 21 006 22 296

Vote 6 - Planning & Dev elopment 332 179 1 042 5 449 4 414 7 368 7 830 8 325

Vote 7 - Electricity 180 683 201 554 227 501 244 286 249 133 356 103 364 976 375 045

Vote 8 - Water 26 846 32 002 31 171 46 684 46 417 46 096 47 716 49 599

Vote 9 - Waste Water Management 9 651 9 481 12 522 21 046 18 617 20 418 21 343 22 376

Vote 10 - Waste Management 13 051 34 923 62 263 22 515 22 562 22 487 25 607 27 554

Total Expenditure by Vote 464 933 628 264 617 479 683 050 633 739 730 140 753 301 781 990




MBRR Table A4 - Budgeted Financial Performance (revenue and expenditure) Revenue generated from rates and services charges forms a significant percentage of the revenue basket for the Municipality. Rates and service charge revenues comprise R 473 million (73.8%) of the total revenue mix. This increases to R 523 million and R 578 million in the respective two outer financial years of the MTREF. A notable trend is the increase in the total percentage revenue generated from rates and sale of electricity which increases from 50 per cent in 2011/12 to 60 per cent in 2015/16. This growth can be mainly attributed to the increased share that the sale of electricity contributes to the total revenue mix, which in turn is due to rapid increases in the Eskom tariffs for bulk electricity.

Property rates contribute 10 per cent or R 64 million rand of the total revenue mix and increases to R 74 million by 2017/18. The other sources of revenue is ‘other revenue’ which consists of various items such as income received from permits and licenses, building plan fees, connection fees, transport fees and advertisement fees. Departments have been urged to review the tariffs of these items on an annual basis to ensure they are cost reflective and market related.

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Operating grants and transfers decreased from R 87 million for 2014-15 to R85 million in the 2015/16 financial year and steadily increases to R 90 million by 2015/16. The average growth of 6% over the 201516 MTREF is less than the 14% growth experienced in the 2011-12 MTREF. This is a clear indication that the National Government is advocating to the Municipality that they should not rely on grants received from National Government but should rather strengthen their own internal revenue generating mechanism.

The employee related cost has increased by R 22 million in order to fund technical or critical positions that are vacant. The salary increase negotiations are still underway, a provision for salary increases of 6.8% though National Treasury is proposing a 5.4% increase which is linked to inflation. The past salary increase have not been less than 6% or higher than 10% in the recent years. Any difference in the salary increase that is below 6.8% or higher than 6.8% will be provided for in the 2015-16 adjustment budgets. Bulk purchases has increased with 44% (R 75 million) from R 167 million in 2011-12 financial period to R 242 million in the 2015-16 financial period. The high increase is mainly on the electricity bulk purchases were Eskom is continuously provided an increase above 6%. Though the level of inventory has decreased a provision is made to have inventory in hand. A provision for inventory amounting to R 5 million has been made in order to reduce interruption that might arise as a result of delays in procuring materials in instance where there’s a breakdown. Though the operating budget has been reduced immensely but no sufficient provision has been made for repairs and maintenance of the municipal assets. In terms of NT circular 66 and 70 repairs and maintenance as a percentage of PPE (carrying value) should be at 8%. Though the repairs & maintenance should contribute 8% the Though the repairs & maintenance is steadily growing R 15 million in the 2011-12 audit outcome to R 31 million in the 2015-6 budget . The percentage for the 2015/16 budget is below the prescribed norm. The main reason for this non-compliance is the current cash flow problem at the Municipality in terms of which expenditure inclusive of repairs and maintenance has been reduced in line with realistically expected revenue streams. This is not sustainable in the medium to long term and the Municipality needs to address this as matter of urgency. Contracted services amount to R 97 million which includes a provision of R 70 million for the repayment of the smart meters. Most of the routine work been outsourced to service provider as well as an absence of service level agreement governing some contract. This also indicates that the municipality has an over reliance on consultants to perform the routine work. This is also influenced by high vacant positions of personnel in various sections, inadequate competency levels of current employees.

188 | P a g e F I N A L I D P 2 0 1 5 / 1 6


Description 2011/12 2012/13 2013/14

R thousandAudited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Budget

Year

2015/16

Budget

Year +1

2016/17

Budget

Year +2

2017/18

Revenue By Source

Property rates 37 301 66 365 38 731 52 600 60 540 64 778 69 312 74 164

Property rates - penalties & collection charges

Serv ice charges - electricity rev enue 136 699 174 886 180 418 227 984 227 984 321 798 361 057 405 106


Serv ice charges - sanitation rev enue 21 248 21 707 23 004 24 730 24 499 26 214 28 049 30 012


Serv ice charges - other


Interest earned - ex ternal inv estments 726 837 1 299 255 1 018 1 089 1 165 1 247

Interest earned - outstanding debtors 18 450 14 110 18 273 18 200 24 262 25 960 27 778 29 722

Div idends receiv ed

Fines 2 166 271 1 755 2 907 502 544 590 640

Licences and permits

Agency serv ices 12 412 18 591 31 283 16 331 48 857 52 277 55 937 59 853


Other rev enue 563 1 983 1 144 1 540 1 525 1 644 1 771 1 912

Gains on disposal of PPE



343 115 431 172 422 526 490 216 536 829 641 288 698 413 763 739

Expenditure By Type

Employ ee related costs 101 586 114 990 117 725 127 068 123 424 145 767 155 136 165 130


Debt impairment 39 082 77 099 47 227 90 818 68 362 68 915 70 983 73 467


Finance charges 1 176 14 219 16 757 764 771 786 810 838

Bulk purchases 167 691 186 519 198 026 213 085 213 085 242 748 250 030 258 781

Other materials 4 154 2 995 4 798 5 089 5 820 5 296 5 472 5 689

Contracted serv ices 21 854 23 250 23 224 26 340 39 019 97 325 98 520 99 835



Loss on disposal of PPE


Surplus/(Deficit) (121 818) (197 092) (194 953) (192 834) (96 910) (88 851) (54 888) (18 251)

Transfers recognised - capital

Contributions recognised - capital – – – – – – – –

Contributed assets

Surplus/(Deficit) after capital

transfers & contributions

(121 818) (197 092) (194 953) (192 834) (96 910) (88 851) (54 888) (18 251)



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MBRR Table A5 - Budgeted Capital Expenditure by vote, standard classification and funding source Table A5 is a breakdown of the capital programme in relation to capital expenditure by municipal vote (multi-year and single-year appropriations); capital expenditure by standard classification; and the funding sources necessary to fund the capital budget, including information on capital transfers from national and provincial departments. The MFMA provides that a municipality may approve multi-year or single-year capital budget appropriations. The capital programmes are funded from capital grants and transfers, internally generated funds from current year surpluses. The allocation of capital grants from the National government has decline over the MTREF

190 | P a g e F I N A L I D P 2 0 1 5 / 1 6

MP305 Lekwa - Table A5 Budgeted Capital Expenditure by vote, standard classification and funding

Vote Description 2011/12 2012/13 2013/14

R thousandAudited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Budget

Year

2015/16

Budget

Year +1

2016/17

Budget

Year +2

2017/18

Capital expenditure - Vote

Multi-year expenditure to be appropriated

Vote 1 - Council & Ex ecutiv e – – – – – – – –

Vote 2 - Budget & Treasury – – – – – – – –

Vote 3 - Corporate – – – – – – – –

Vote 4 - Community Serv ices – – – – – – – –

Vote 5 - Roads – – – – – – – –

Vote 6 - Planning & Dev elopment – – – – – – – –

Vote 7 - Electricity – – – – – – – –

Vote 8 - Water – – – – – 10 500 10 870 11 933

Vote 9 - Waste Water Management – – – – – 16 306 17 000 17 000

Vote 10 - Waste Management – – – – – – – –

Capital multi-year expenditure sub-total – – – – – 26 806 27 870 28 933

Single-year expenditure to be appropriated

Vote 1 - Council & Ex ecutiv e 13 – – – – – – –

Vote 2 - Budget & Treasury 74 4 238 – 1 300 5 550 – – –

Vote 3 - Corporate 2 544 – – – – – – –

Vote 4 - Community Serv ices 6 587 5 486 – – 3 677 1 173 – –

Vote 5 - Roads 29 896 10 276 – – 2 043 – – –

Vote 6 - Planning & Dev elopment – – – – – – – –

Vote 7 - Electricity 2 102 2 032 – – 2 184 3 200 – –

Vote 8 - Water 832 661 – 16 500 23 022 – – –

Vote 9 - Waste Water Management 1 973 5 121 – 16 984 41 960 – – –

Vote 10 - Waste Management 93 7 637 – – 465 1 000 – –

Capital single-year expenditure sub-total44 115 35 449 – 34 784 78 900 5 373 – –

Total Capital Expenditure - Vote 44 115 35 449 – 34 784 78 900 32 179 27 870 28 933

Capital Expenditure - Standard

Governance and administration 2 632 4 238 – 1 300 5 550 – – –

Ex ecutiv e and council 13 –

Budget and treasury office 74 4 238 1 300 5 550

Corporate serv ices 2 544

Community and public safety 6 587 5 486 – – 3 677 1 173 – –

Community and social serv ices 1 667 623

Sport and recreation 6 587 5 486 2 010 550

Economic and environmental services29 896 10 276 – – 2 043 – – –

Road transport 29 896 10 276 2 043

Trading services 5 000 15 450 – 33 484 67 630 31 006 27 870 28 933

Electricity 2 102 2 032 2 184 3 200

Water 832 661 16 500 23 022 10 500 10 870 11 933

Waste w ater management 1 973 5 121 16 984 41 960 16 306 17 000 17 000

Waste management 93 7 637 465 1 000

Total Capital Expenditure - Standard 44 115 35 449 – 34 784 78 900 32 179 27 870 28 933

Funded by:

National Gov ernment 40 950 31 212 33 484 51 350 29 679 27 870 28 933

Prov incial Gov ernment 20 000

District Municipality 2 000

Transfers recognised - capital 40 950 31 212 – 33 484 73 350 29 679 27 870 28 933

Internally generated funds 3 165 4 238 1 300 5 550 2 500

Total Capital Funding 44 115 35 449 – 34 784 78 900 32 179 27 870 28 933



191 | P a g e F I N A L I D P 2 0 1 5 / 1 6

MBRR Table A6 - Budgeted Financial Position

1. Table A6 is consistent with international standards of good financial management practice, and improves understandability for councilors and management of the impact of the budget on the statement of financial position (balance sheet).

2. This format of presenting the statement of financial position is aligned to GRAP1, which is generally aligned to the international version which presents Assets less Liabilities as “accounting” Community Wealth. The order of items within each group illustrates items in order of liquidity; i.e. assets readily converted to cash, or liabilities immediately required to be met from cash, appear first.

3. Table 66 is supported by an extensive table of notes (SA3 which can be found on page 102) providing a detailed analysis of the major components of a number of items, including:

• Call investments deposits; • Consumer debtors; • Property, plant and equipment; • Trade and other payables; • Provisions non-current; • Changes in net assets; and • Reserves 4. The municipal equivalent of equity is Community Wealth/Equity. The justification is that

ownership and the net assets of the municipality belong to the community. Any movement on the Budgeted Financial Performance or the Capital Budget will inevitably impact on the Budgeted Financial Position. As an example, the collection rate assumption will impact on the cash position of the municipality and subsequently inform the level of cash and cash equivalents at year end. Similarly, the collection rate assumption should inform the budget appropriation for debt impairment which in turn would impact on the provision for bad debt. These budget and planning assumptions form a critical link in determining the applicability and relevance of the budget as well as the determination of ratios and financial indicators. In addition the funding compliance assessment is informed directly by forecasting the statement of financial position

192 | P a g e F I N A L I D P 2 0 1 5 / 1 6

MP305 Lekwa - Table A6 Budgeted Financial Position

Description 2011/12 2012/13 2013/14

R thousandAudited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Budget

Year

2015/16

Budget

Year +1

2016/17

Budget

Year +2

2017/18

ASSETS

Current assets

Cash 29 660 6 985 6 985 4 000 6 800 6 500

Call inv estment deposits 15 273 23 780 – 27 936 27 936 47 984 88 164 125 718

Consumer debtors 51 617 45 315 55 672 87 350 87 350 128 567 141 424 155 566

Other debtors 7 172 7 167 32 523 6 306 6 306 37 127 40 840 44 924

Current portion of long-term receiv ables – – – –

Inv entory 2 322 2 464 2 618 2 093 2 093 3 053 3 358 3 694

Total current assets 76 384 78 726 120 472 130 670 130 670 220 731 280 585 336 402

Non current assets

Long-term receiv ables

Inv estments

Inv estment property 10 250 9 881 12 746 10 869 10 869 12 246 11 746 11 246

Inv estment in Associate

Property , plant and equipment 1 981 968 1 896 136 1 775 440 1 797 658 1 797 658 1 668 281 1 601 151 1 532 235

Agricultural

Biological

Intangible

Other non-current assets

Total non current assets 1 992 218 1 906 016 1 788 186 1 808 527 1 808 527 1 680 528 1 612 898 1 543 481

TOTAL ASSETS 2 068 602 1 984 743 1 908 658 1 939 197 1 939 197 1 901 258 1 893 483 1 879 883

LIABILITIES

Current liabilities

Bank ov erdraft 7 481

Borrow ing 1 350 1 102 – – – – – –

Consumer deposits 2 592 2 705 2 813 2 789 2 789 3 164 3 481 3 829

Trade and other pay ables 177 480 261 754 364 415 318 850 318 850 395 283 430 294 424 442

Prov isions 5 280 5 589 6 148 6 762 7 439

Total current liabilities 181 422 278 322 372 817 321 639 321 639 404 595 440 537 435 709

Non current liabilities

Borrow ing 1 037 – – – – – – –

Prov isions 88 222 92 289 101 382 94 269 94 269 111 520 122 672 134 939

Total non current liabilities 89 260 92 289 101 382 94 269 94 269 111 520 122 672 134 939

TOTAL LIABILITIES 270 682 370 611 474 198 415 908 415 908 516 115 563 209 570 648

NET ASSETS 1 797 920 1 614 132 1 434 460 1 523 288 1 523 288 1 385 144 1 330 274 1 309 235

COMMUNITY WEALTH/EQUITY

Accumulated Surplus/(Deficit) 1 797 920 1 614 132 1 434 460 1 523 288 1 523 288 1 385 144 1 330 274 1 309 235

Reserv es – – – – – – – –

Minorities' interests

TOTAL COMMUNITY WEALTH/EQUITY1 797 920 1 614 132 1 434 460 1 523 288 1 523 288 1 385 144 1 330 274 1 309 235



193 | P a g e F I N A L I D P 2 0 1 5 / 1 6

MBRR Table A7 - Budgeted Cash Flow Statement

MP305 Lekwa - Table A7 Budgeted Cash Flows

Description 2011/12 2012/13 2013/14

R thousandAudited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Budget

Year

2015/16

Budget

Year +1

2016/17

Budget

Year +2

2017/18

CASH FLOW FROM OPERATING ACTIVITIES

Receipts

Property rates, penalties & collection

charges 34 940 24 465 22 380 44 956 49 212 52 656

Serv ice charges 176 132 293 248 232 173 298 584 359 715 401 885 447 478

Other rev enue 12 378 55 096 58 973 63 127

Gov ernment - operating 75 805 79 067 81 320 89 270 91 783 85 557 87 026 90 755

Gov ernment - capital 35 331 49 542 69 176 33 484 72 050 29 679 27 870 28 933

Interest 19 176 14 949 19 573 4 856 25 280 13 031 13 943 14 919

Payments

Suppliers and employ ees (306 303) (417 791) (342 695) (446 083) (1 345 174) (562 800) (580 940) (603 597)

Finance charges (4 149) (18 233) (21 862) (764) (764) (786) (810) (838)

Transfers and Grants (2 108) (2 171) (2 247)

NET CASH FROM/(USED) OPERATING ACTIVITIES43 310 25 247 60 064 (20 653) (1 156 825) 22 340 54 988 91 186

CASH FLOWS FROM INVESTING ACTIVITIES

Receipts

Proceeds on disposal of PPE 954 – – –

Decrease (Increase) in non-current debtors (2 086) (2 286) – – –

Payments

Capital assets (35 331) (21 085) (44 819) (34 784) (78 900) (32 179) (27 870) (28 933)

NET CASH FROM/(USED) INVESTING ACTIVITIES(35 331) (22 217) (47 105) (34 784) (78 900) (32 179) (27 870) (28 933)

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts

Short term loans – – –

Borrow ing long term/refinancing – – –

Increase (decrease) in consumer deposits – – –

Payments

Repay ment of borrow ing (1 647) (1 285) (1 102) – – –

NET CASH FROM/(USED) FINANCING ACTIVITIES(1 647) (1 285) (1 102) – – – – –

NET INCREASE/ (DECREASE) IN CASH HELD 6 331 1 744 11 857 (55 438) (1 235 725) (9 839) 27 117 62 253

Cash/cash equiv alents at the y ear begin: 8 941 15 273 17 017 29 968 54 276 36 881 27 042 54 159

Cash/cash equiv alents at the y ear end: 15 273 17 017 28 874 (25 470) (1 181 449) 27 042 54 159 116 412



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MBRR Table A8 - Cash Backed Reserves/Accumulated Surplus Reconciliation

MP305 Lekwa - Table A8 Cash backed reserves/accumulated surplus reconciliation

Description 2011/12 2012/13 2013/14

R thousandAudited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Budget

Year

Budget

Year +1

Budget

Year +2

Cash and investments available

Cash/cash equiv alents at the y ear end 15 273 17 017 28 874 (25 470) (1 181 449) 27 042 54 159 116 412

Other current inv estments > 90 day s – (717) 786 60 391 1 216 371 24 942 40 804 15 806

Non current assets - Inv estments – – – – – – – –

Cash and investments available: 15 273 16 300 29 660 34 922 34 922 51 984 94 964 132 218

Application of cash and investments

Unspent conditional transfers 10 994 21 940 3 847 27 936 27 936 17 744 19 518 21 470

Unspent borrow ing – – – – – – – –

Statutory requirements

Other w orking capital requirements 148 148 229 902 498 382 290 914 290 914 511 986 563 259 620 037

Other prov isions

Long term inv estments committed – – – – – – – –

Reserv es to be backed by cash/inv estments

Total Application of cash and investments:159 142 251 842 502 229 318 850 318 850 529 730 582 777 641 508

Surplus(shortfall) (143 869) (235 543) (472 569) (283 928) (283 928) (477 746) (487 813) (509 289)



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MBRR Table A9 - Asset Management MP305 Lekwa - Table A9 Asset Management

Description 2011/12 2012/13 2013/14

R thousandAudited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Budget

Year

Budget

Year +1

Budget

Year +2

CAPITAL EXPENDITURE

Total New Assets 44 115 35 449 – 29 784 78 900 8 179 3 870 4 000

Infrastructure - Road transport 29 570 10 169 – – 2 043 – – –

Infrastructure - Electricity 2 102 2 032 – – 2 184 3 200 – –

Infrastructure - Water 832 107 – 11 500 18 022 1 500 1 870 2 000

Infrastructure - Sanitation 1 973 5 781 – 16 984 46 960 1 306 2 000 2 000

Infrastructure - Other 93 7 637 – – 465 1 000 – –

Infrastructure 34 570 25 726 – 28 484 69 673 7 006 3 870 4 000

Community 6 557 5 486 – – 3 677 1 173 – –

Other assets 2 988 4 238 – 1 300 5 550 – – –

Total Renewal of Existing Assets – – – 5 000 – 24 000 24 000 24 933

Infrastructure - Water – – – 5 000 – 9 000 9 000 9 933

Infrastructure - Sanitation – – – – – 15 000 15 000 15 000

Infrastructure - Other – – – – – – – –

Infrastructure – – – 5 000 – 24 000 24 000 24 933

Total Capital Expenditure

Infrastructure - Road transport 29 570 10 169 – – 2 043 – – –

Infrastructure - Electricity 2 102 2 032 – – 2 184 3 200 – –

Infrastructure - Water 832 107 – 16 500 18 022 10 500 10 870 11 933

Infrastructure - Sanitation 1 973 5 781 – 16 984 46 960 16 306 17 000 17 000

Infrastructure - Other 93 7 637 – – 465 1 000 – –

Infrastructure 34 570 25 726 – 33 484 69 673 31 006 27 870 28 933

Community 6 557 5 486 – – 3 677 1 173 – –

Other assets 2 988 4 238 – 1 300 5 550 – – –

TOTAL CAPITAL EXPENDITURE - Asset class44 115 35 449 – 34 784 78 900 32 179 27 870 28 933

ASSET REGISTER SUMMARY - PPE (WDV)

Inv estment properties 10 250 9 881 12 746 10 869 10 869 12 246 11 746 11 246

Other assets 1 981 968 1 896 136 1 775 440 1 797 658 1 797 658 1 668 281 1 601 151 1 532 235

TOTAL ASSET REGISTER SUMMARY - PPE (WDV)1 992 218 1 906 016 1 788 186 1 808 527 1 808 527 1 680 528 1 612 898 1 543 481

EXPENDITURE OTHER ITEMS


Repairs and Maintenance by Asset Class15 754 13 857 31 406 17 408 20 498 31 423 29 339 30 010

Infrastructure - Road transport 1 380 557 8 435 1 386 1 685 2 000 – –

Infrastructure - Electricity 3 798 3 413 9 374 5 360 7 800 12 700 12 991 12 841

Infrastructure - Water 1 836 2 209 2 197 2 250 2 650 3 551 3 658 3 786

Infrastructure - Sanitation 1 132 740 3 863 850 450 500 515 533

Infrastructure - Other – – – – – – – –

Infrastructure 8 147 6 919 23 869 9 845 12 585 18 751 17 164 17 159

Other assets 7 607 6 939 7 537 7 563 7 913 12 672 12 175 12 850

TOTAL EXPENDITURE OTHER ITEMS 76 645 135 365 159 411 156 604 136 018 126 954 127 735 131 850

Renewal of Existing Assets as % of total capex0.0% 0.0% 0.0% 14.4% 0.0% 74.6% 86.1% 86.2%

Renewal of Existing Assets as % of deprecn"0.0% 0.0% 0.0% 3.6% 0.0% 25.1% 24.4% 24.5%

R&M as a % of PPE 0.8% 0.7% 1.8% 1.0% 1.1% 1.9% 1.8% 2.0%

Renewal and R&M as a % of PPE 1.0% 1.0% 2.0% 1.0% 1.0% 3.0% 3.0% 4.0%



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MBRR Table A10 - Basic Service Delivery Measurement MP305 Lekwa - Table A10 Basic service delivery measurement

2011/12 2012/13 2013/14

Outcome Outcome OutcomeOriginal

Budget

Adjusted

Budget

Budget

Year

2015/16

Budget

Year +1

2016/17

Budget

Year +2

2017/18

Household service targets

Water:

Piped w ater inside dw elling 17 154 17 154 17 154 17 160 17 160 17 180 17 200 17 225

Piped w ater inside y ard (but not in dw elling) 10 993 10 993 11 133 11 147 11 147 11 647 12 642 13 347

Using public tap (at least min.serv ice lev el) 1 432 1 432 1 522 1 780 1 780 1 920 1 980 2 210

Other w ater supply (at least min.serv ice lev el) 184 184 184

Minimum Service Level and Above sub-total 29 763 29 763 29 993 30 087 30 087 30 747 31 822 32 782

Using public tap (< min.serv ice lev el) 125 125 125 125

Other w ater supply (< min.serv ice lev el)

No w ater supply 731 731 641 1 500 000 1 500 000 1 870 150 2 000 000

Below Minimum Service Level sub-total 856 856 766 1 500 125 – 1 500 000 1 870 150 2 000 000

Total number of households 30 619 30 619 30 759 1 530 212 30 087 1 530 747 1 901 972 2 032 782

Sanitation/sewerage:

Flush toilet (connected to sew erage) 25 984 25 984 26 007 26 037 26 037 26 537 27 537 28 287

Flush toilet (w ith septic tank) 682 682 682 682 682 682 682 682

Chemical toilet 230 230 230 – – – – –

Pit toilet (v entilated) 1 464 1 464 1 464 – – – – –

Other toilet prov isions (> min.serv ice lev el) 516 714 924 1 005 1 005 1 105 1 174 1 257

Minimum Service Level and Above sub-total 28 876 29 074 29 307 27 724 27 724 28 324 29 393 30 226

Bucket toilet 316 316 316 – – – – –

Other toilet prov isions (< min.serv ice lev el) 597 597 597 – – – – –

No toilet prov isions 1 279 1 087 871 1 190 000 1 306 150 2 000 000 2 000 000

Below Minimum Service Level sub-total 2 192 2 000 1 784 1 190 000 – 1 306 150 2 000 000 2 000 000

Total number of households 31 068 31 074 31 091 1 217 724 27 724 1 334 474 2 029 393 2 030 226

Description



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7.5. OVERVIEW OF BUDGET-RELATED POLICIES It is a legislative requirement that municipal budget for the following fiscal year, together with finance related policies will be reviewed tabled and adopted by council. The following financial policies have been changed:

The Supply Chain Management Policy The policy ensures that all employees of Lekwa Local Municipality has proper guidelines to follow when involved in procurement processes.

Property Rates Policy This policy guides the annual setting (or revision) of property rates. Details pertaining to the applications of the various property rates are published in the Provincial Gazette and the municipality’s schedule of tariffs, which must be read in conjunction with this policy. In imposing the rate in the rand for each annual operating budget component, the municipality shall grant exemptions, rebates and reductions to the respective categories of properties and owners as allowed for in this policy. The policy also guides the valuation of properties within the jurisdiction of the Municipality.

Asset Management Policy The purpose of the policy should promote efficient and effective monitoring and control of assets according to the MFMA. The changes have been made in term of Generally Recognised Accounting Practice (GRAP)

Indigent Support Policy

The key purpose of an indigent subsidy policy is to ensure that households with no or lower income are not denied a reasonable service, and on the contrary the Municipality is not financially burdened with non-payment of services. Provided that grants are received and funds are available, the indigent subsidy policy should remain intact. To achieve the purpose it is important to set a fair threshold level, and then to provide a fair subsidy of tariffs. The consumer, in order to qualify as an indigent, needs to complete the necessary documentation as required and agree to regulations and restrictions stipulated by Lekwa Local Municipality. Bad Debt Provision & Write-off Policy The key purpose of this policy is to provide criteria for the provision of working capital as a result of non-payment and for the write-off of debt under certain circumstances. Council acknowledges that in order to deliver services in a sustainable manner, that revenue collection be managed in terms of Councils Debt Collection and Credit Control Policy having due regard of its limited financial resources and the need to manage cash flows. Council therefore accepts its duty to prepare financial statements that truly reflects the financial position of the Municipality.

Petty Cash Policy The policy is established to ensure that the management of expenditure of a municipality is effective and controlled manner.

Credit Control and Debt Collection Policy The purpose of this policy is to use innovative, cost effective, efficient and appropriate methods to manage credit control and debt collection of the municipality

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Tariff Policy This policy cover, among other things, the levying of fees for municipal services provided by the municipality itself or by way of service delivery agreements. Budget Policy whereby transfers between line items within votes of the operating budget may be performed with the approval of certain officials

S & T Policy The main importance of budget policy is to address allocation of resources, and how to efficiency use resources and attaining economic stability and growth, and redistribution of income. It includes the Virement Policy that is designed to provide a framework. The purpose of this policy is to lay down general rules for the payment of subsistence and traveling allowances or costs for the ‘attendance of approved events outside the municipal area of Lekwa Local Municipality.

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7.6. OVERVIEW OF BUDGET FUNDING

The main sources of revenue/funding are indicated in the table below:


Description 2011/12 2012/13 2013/14

R thousandAudited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Budget

Year

2015/16

Budget

Year +1

2016/17

Budget

Year +2

2017/18

Revenue By Source

Property rates 37 301 66 365 38 731 52 600 60 540 64 778 69 312 74 164

Serv ice charges - electricity

rev enue 136 699 174 886 180 418 227 984 227 984 321 798 361 057 405 106


Serv ice charges - sanitation

rev enue 21 248 21 707 23 004 24 730 24 499 26 214 28 049 30 012



Interest earned - ex ternal

inv estments 726 837 1 299 255 1 018 1 089 1 165 1 247

Interest earned - outstanding

debtors 18 450 14 110 18 273 18 200 24 262 25 960 27 778 29 722

Fines 2 166 271 1 755 2 907 502 544 590 640

Agency serv ices 12 412 18 591 31 283 16 331 48 857 52 277 55 937 59 853


Other rev enue 563 1 983 1 144 1 540 1 525 1 644 1 771 1 912



343 115 431 172 422 526 490 216 536 829 641 288 698 413 763 739



EXPENDITURE ON ALLOCATIONS AND GRANT PROGRAMMES Grants and subsidies from National and Provincial governments, as reported in the 2015 Division of Revenue Act and reflected in SA 19, have been included the 2015/16 budget and each allocation will utilised for the purpose as described below.

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MP305 Lekwa - Supporting Table SA18 Transfers and grant receipts

Description 2011/12 2012/13 2013/14

R thousandAudited

Outcome

Audited

Outcome

Audited

Outcome

Original

Budget

Adjusted

Budget

Budget

Year

2015/16

Budget

Year +1

2016/17

Budget

Year +2

2017/18

RECEIPTS:

Operating Transfers and Grants


Local Gov ernment Equitable Share 69 959 79 068 81 320 85 034 85 034 83 027 84 444 88 022

Finance Management 1 713 1 250 1 550 1 600 1 600 1 600 1 625 1 700

Municipal Sy stems Improv ement 1 506 800 890 934 934 930 957 1 033

Other transfers/grants [insert description] – 3 006 4 070

Total Operating Transfers and Grants 73 178 84 124 87 830 87 568 87 568 85 557 87 026 90 755

Capital Transfers and Grants


Municipal Infrastructure Grant (MIG) 53 783 41 780 59 004 33 994 33 994 27 978 28 970 30 456

Neighbourhood Dev elopment Partnership 1 745

Intergrated Electrification Programme 1 389 1 500 1 500 1 700 6 000 3 000

Ex panded Public Works Programme 1 449 1 190 1 190 1 173

Other capital transfers/grants [insert desc] 25 430

Provincial Government: – – – – 20 000 – – –

Human Settlement 20 000

District Municipality: – – – – 2 000 – – –

Rising Main Project 2 000

Other grant providers: – – – – – – – –

Total Capital Transfers and Grants 56 621 43 525 84 434 36 684 58 684 30 851 34 970 33 456

TOTAL RECEIPTS OF TRANSFERS & GRANTS129 799 127 649 172 264 124 252 146 252 116 408 121 996 124 211

References



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Project Description

Total Planned

Expenditure for

2015/2016

Planned MIG

Expenditure for

2016/2017

Planned MIG

Expenditure for

2017/2018

Upgrading of the Standerton Waste

Water Treatment Works 15 000 000.00R 15 000 000.00R 15 000 000.00R

Installation of Bulk Water Infrastructure

and Replacement of AC pipes in Lekwa

Local Municipality 9 000 000.00R 9 000 000.00R 9 933 200.00R

Installation of Boreholes in Lekwa

Municipality in farm areas 1 500 000.00R 1 870 150.00R 2 000 000.00R

Rooikoppen Sewer Network -R

Installation of Sanitation services in Rural

areas of Lekwa LM 1 306 150.00R 2 000 000.00R 2 000 000.00R

Electrification of RDP house in Standerton

Extension 8 1 700 000.00R

Development of New Cemetry for Lekwa

LM 623 000.00R

Rehabilitation of River Park 550 000.00R

Electrification of 53 rural houses 1 500 000.00R

Conduct Environmental Impact

Assessment for Development of a New

Cell at Morgenzon Landfill Site 1 000 000.00R

Total 32 179 150.00R 27 870 150.00R 28 933 200.00R

Municipal manager’s quality certificate I Linda Bernard Tshabalala, Municipal Manager of Lekwa Local Municipality, hereby certify that the Annual Budget and supporting documentation have been prepared in accordance with the Municipal Finance Management Act and the regulations made under the Act. Print Name Linda Bernard Tshabalala Municipal Manager of Lekwa Local Municipality (MP305) Signature _________________________________ Date 24 March 2015

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7. CHAPTER 7: GOOD GOVERNANCE AND PUBLIC PARTICIPATION

7.1. Gender Lekwa Municipality is taking the issue of gender seriously. Gender refers to the socially determined and evaluated identities and roles of men and women, and is usually distinguished from their biological or sex differences. Gender equality, gender and women’s empowerment are thus the outcomes of effective gender mainstreaming and interventions.

Gender Equity: means affording women and men the equal opportunities and benefits to develop their full human potential and meet development needs. This implies that everyone in Lekwa is equal before the law and may not be discriminated against on the basis of gender, sex, disability, age and marital status. The Constitution espouses substantive equality for women and men in social political and economic life. Human Rights: Women’s rights are human rights as enshrined in the Bill of Rights. Customary, cultural and religious practices are subject to the right to equality:

All persons have the right to enjoy and practice religious and cultural beliefs. However, these practices should not discriminate on the basis of gender. Empowerment of women refers to the capacity of women to access and control economic resources and makes decision for improving their quality of life Entitlement to the right of integrity and security of person. Consideration in Lekwa is given to selection and recruitment policy targets for ensuring equal participation of decision making.

7.2. Older Persons The municipality is in support of programmes aimed at older persons such as:

Promote active ageing -programmes in collaboration with DCSR

Promote care and protection of older persons

Conduct community and Intergenerational dialogues

7.3. Persons with Disabilities The municipality is in support of programmes aimed at persons with disabilities such as:

Promote and protect rights of persons with disabilities with special focus on children

Increase capacity in protective workshops to ensure sustainability and economic participation in partnership with other stakeholders

7.4. Youth Development The municipality is in support of programmes aimed at Youth development;

Facilitation of social change and activation of youth through a basket of service in youth

centres - linking them with relevant stakeholders

Facilitation of sustainable economic activities for the youth in CRDP sites in collaboration

with NYDA , NDA , DRDLR, DARDLA and DEDET

7.5. Sustainable Livelihoods The municipality is in support of programmes aimed sustainable livelihood;

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Household Profiling , referral and monitoring of interventions

Development of community profiles

Facilitate food security initiatives in collaboration with DARDLA , SASSA and NDA

7.6. Early Childhood Development ECD The municipality is in support of programmes aimed at ECD;

Special allocation to increase subsidy from R12.00 per child per day to R15.00

Implementation of non-centre based ECD programme

Training of parents and child minders on parenting programme

Provision of infrastructure to ECDs which is a joint venture of DSD and NDA, DHS and some

municipalities.

7.7. Child care and Protection The municipality is in support of programmes aimed at Child care and Protection;

Provision of Life Skills and Parenting Programmes to teenagers (with specific focus to 9 – 18

years old) – SASSA Information indicates high number of children on CSG in some

municipalities

Develop plans for children in foster care before they reach 18 years of age (exit plan

informed by individual development plans)

Group work for foster parents and foster children

Implementation of ISIBINDI model (focus on child headed households)

7.8. Moral Regeneration Lekwa Municipality has set aside a budget for Moral Regeneration Movement. The MRM is primarily a movement and not an organization. It does not seek to replace or duplicate any of the existing initiatives and processes aimed at combating moral degeneration. Its mandate is to be a networking platform for all these various processes and initiatives. Therefore structures put in place to facilitate the work of MRM aim primarily at facilitating the envisaged networks and partnerships. They also seek to promote local action and commitment from within the various communities of the country at their various levels of existence and operation.

The ultimate objective of the moral regeneration movement is to assist in the development of a caring society through the revival of the spirit of Botho / Ubuntu and the actualization and realization of the values and ideals enshrined in our constitution, using all available resources and harnessing all initiatives in government, business and civil society. In the words of the state president Thabo Mbeki “The MRM will address the issue of the responsibility that each of us should take for our lives, moving from the understanding that, as we were our own liberators in resistance against apartheid so too should we today act as our own liberators in dealing with its legacy”

How do they operate in Lekwa Municipality?

Networking forums, known as working committees, comprising provincial and local government, faith based organizations, non-governmental organizations, business, labour, traditional leaders, political parties have been established in Lekwa. These structures are charged with the responsibility of facilitating the work of MRM within the municipality.

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Focus areas of the Movement’s work

Development of Ethical Leadership

Any process of transformation process requires able leaders to take it forward. Leaders at all levels and in all sectors of society are perceived as role models and should therefore be persons on integrity, and good examples, who themselves continually aspire to set the standard for ‘morality’.

Moral Regeneration must aim at developing and nurturing such leadership!

Youth

The youth are the ones who bear most of the brunt or moral decay. They are often perceived as the agents of immoral behaviour or helpless victims who need some external intervention. They themselves decry the lack of role models and opportunities for right living.

Moral Regeneration must aim at harnessing and supporting the energy and creative spirit of youth towards moral renewal!

Education

As the Chairperson of MRM cautions: “It little profits a nation to boast about thousands of teachers, doctors, engineers, accountants, lawyers, priests, scientists and all kinds of skilled personal personnel if these are devoid of moral values. Did Nazi Germany or Apartheid South Africa not boast of similarly skilled citizenry? Yet it was the same professional and skilled persons that were turned into monsters that sent helpless persons to the gas chambers, conducted experiments on human bodies without their consent and mercilessly killed people for being different from them. Equally, in our times, it is skilled people who steal government funds and thus prevent the delivery of social services to the needy”.

Moral Regeneration must aim at making our education system foreground moral formation as one of its core functions both in theory and in practice!

The Family

The family in all its cultural and religious manifestations is an important agent of socialisation and a major instrument for nurturing values, attitudes and behaviour.

Moral Regeneration must aim at strengthening the family unit!

Riches and Poverty

Unquestionably, poverty is seen as a serious threat to moral regeneration. This does not mean that the poor are immoral; often the poorest people display deep moral integrity. It is the growing gap between the rich and the poor and worsening levels of poverty that are immoral. These create conditions within which moral decay in communities and neighbourhoods flourishes.

Moral Regeneration must aim at combating poverty and reducing the inequality gap!

Crime and Corruption

The prevalence of crime and high levels of corruption manifests a deep loss of respect for human life, a profound lack of patriotism and care for others and sickening degree of greed and selfishness.

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Moral Regeneration must aim at combating the root causes of crime and corruption in all their manifestations!

Religion

Religious belief and practices is another key agent of moral formation. Given the diversity of religious belief systems in our communities and the propensity of formal religion to proselytize, the power of religion as an agent of moral renewal is weakened.

The Media

The media is generally negative when reporting about moral issues. Media economics are seen to dictate that good news do not sell, whilst negative news does. Therefore, in pursuit of commercial imperatives, the media is likely to concentrate on news that sells (which are often negative) at the expense of good news (news that do not sell). This fuels perception that the country is generally immoral!

Moral Regeneration must aim at ensuring that the media does also carry positive stories of moral courage and renewal

7.9. Oversight Committees The oversight role of Council is an important component of the financial reforms and it is achieved through the separation of roles and responsibilities between Council, the Executive (Mayor and Executive Committee) and administration. Good governance, effective accountability and oversight can only be achieved if there is a clear distinction between the functions performed by the different role players.

Non-executive Councillors are required to maintain oversight on the performance of specific responsibilities and delegated powers that they have given to the (Mayor). In other words, in exchange for the powers in which Council have delegated to the Executive, Council retains a monitoring and oversight role ensuring that there is accountability for the performance or non- performance of the municipality. The Municipal Finance Management Act (MFMA) vests in Council specific powers of approval and oversight.

Approval of budgets

Approval of Budget related Policies

Review of the Annual Report and adoption of the Oversight Report

Function of Oversight Committee

Undertake a review and analysis of the Annual Report

Invite, receive and consider inputs from Councillors and Portfolio Committees, on the Annual Report.

Consider written comments received on the Annual Report from the public consultation process

Conduct Public Hearing(s) to allow the local community or any organs of state to make representations on the Annual Report

Receive and consider Councils’ Audit Committee views and comments on the annual financial statements and the performance report.

Preparation of the draft Oversight Report, taking into consideration, the views and inputs of the public, representative(s) of the Auditor General, organ of states, Councils’ audit committee and Councillors.

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Membership

The Oversight Committee is a committee of Council established under section 79 of the Municipal Structures Act 1998. Section 79, allows for the co-option of advisory members to a committee of Council, who are not members of the Council. Due to the separation of roles and responsibilities, between Council and the Executive (Mayor and Executive Committee) it is not appropriate that members of the Executive Committee be members of the Oversight Committee.

The Oversight Committee is composed of the following members;

Four PR Councillors :

Two members from local community Authority & Power

The Oversight Committee is delegated the responsibility to conduct meetings and to hold public hearings to receive and hear public submissions on the Annual Report, on behalf of Council. Timely notice of all meetings should be given and all meetings held by the Oversight Committee must be open to the public and minutes of the meetings must be submitted to Council meetings.

Meeting Schedule

The Annual Report must be tabled to Council by the 31st January and the Oversight Report must be adopted within two months from the date in which the Annual Report was tabled to Council. Within the two month period, the Oversight Committee will be required to meet as required to fulfil the functions of the committee

7.10. Municipal Public Accounts Committees Lekwa Municipality has a fully functional and established Municipal Public Accounts Committee, referred to as the Municipal SCOPA.

Considering there is a need for enhanced financial management oversight capacity, it is therefore recommended that an oversight committee is established with functions similar to a MPAC within municipality. The MPAC report directly to Council through the Speaker as any other form of reporting line will compromise the committee’s independence, authority and integrity.

Functions

The MPAC performs an oversight function on behalf of Council and is not a duplication of, and should not be confused with the Audit Committee or the finance portfolio committee.

The Audit Committee is an independent advisory body that advises Council and the executive on financial and risk matters and can act as an advisory body to the MPAC.

The finance portfolio committee deals with financial management issues such as budgetary, revenue and expenditure management and supply chain management.

The primary function of the MPAC is to assist Council to hold the executive and the municipal administration to account and to ensure the effective and efficient use of municipal resources. It will execute this function by reviewing public accounts and exercising oversight on behalf of the Council.

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It is however important that good working relationships are developed between the MPAC and the other committees. Whilst guarding its independence, the MPAC should have the right to refer or receive matters from the other committees.

It is recommended that the committee examines the following:

Financial statements of all executive organs of Council

Any audit reports issued on those statements

Any reports issued by the Auditor General on the affairs of any municipal entity

Any other financial statements referred to the committee by Council

The annual report on behalf of Council and make recommendations to Council thereafter

The committee may also:

Report on any financial statements or reports to Council

Initiate and develop the annual oversight report based on the annual report

Initiate any investigation in its area of competence

Perform any other function assigned to it by resolution of Council When examining financial statements and audit reports, the committee must consider improvements from previous statements and must monitor the extent to which the committee’s and the Auditor General’s recommendations are implemented. The outcomes and the resolutions taken by this committee must be reported to Council and made public.

Structure and Membership

A MPAC, similar to other Council committees, should comprise solely of Councillors appointed by a full Council meeting. It is imperative that members represent a wide range of experience and expertise available in Council and political representative should also be taken into consideration.

The size should be determined according to the size of Council. It should range between a minimum of 5 to a maximum of 12 members.

The Mayor and members of the Executive Committee are not allowed to be members of the MPAC.

The committee may invite members of the public or experts in relevant fields to assist and advise in its deliberations when the need arises.

Chairing the Committee

This framework recommends that the appointment of the chairperson of the Municipal SCOPA must take into account the requirements of transparency, ethics and general good governance prescripts as well as local government legislature.

In keeping with the general tradition of oversight, the Council may consider whether a member of an opposition party may chair the committee. However ultimately this is a policy decision to be made by Council

7.11. Ward Committees Ward Committees are fully functional. There are 10 members in each Ward Committee in Lekwa with 150 Ward Committee members.

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They consult via the Executive Mayoral outreach programme.

They link the Integrated planning process to their wards

Assist in the organizing of public consultation and participation

Ensure that the annual municipal budget and business plans are linked to and based on the IDP

7.12. Audit Committees The Municipality has a fully functional Audit Committee, and no longer sharing audit services concept with other three local municipalities and the GSDM. The Audit Committee is functioning effectively as envisaged. A 3-year rolling Audit Plan in terms of MFMA will be produced by Internal Audit and these would be reviewed annually. The risk based plan should be in terms of the MFMA legislation. Further risk plans also allows the municipality to prioritize its risks into high, medium and low. The high risks are attended to immediately and subsequently the internal controls are strengthened.

Pertaining to Performance Audit committee function, the current Audit Committee will be utilized instead of establishing an additional Committee to focus specifically on overall Organizational Performance Audit.

7.13. Intergovernmental Relations The municipality has an IGR unit which is focusing on Overseeing all the IGR matters, Promoting, Fostering Intergovernmental Relations and sector collaborations, Facilitating and Supporting Sports, Arts and Culture and Facilitate and coordinate Gender, Disability and HIV/AIDS function.

The Municipality is still having a challenge when it comes to integrated planning especially integration of programs and projects from some sector departments from Mpumalanga Provincial Government. The manner in which the private sector is participating in the local municipality planning process also needs to be improved through engagement as prescribed in the Municipal Systems Act.

The objectives of the IGR Unit in Lekwa are to;

Contribute knowledge and ideas about planning issues in the province and sectors;

Contribute relevant information on the provincial sector departments plans, programmes, budgets, objectives, strategies and projects in a concise and accessible manner;

Ensure that their objectives and strategies and projects take the local IDP into consideration and adjust their budgets as informed by the local IDP into consideration;

Engage in a process of alignment with the GSDM and other local municipalities, and participate in the provincial management system and co-ordination;

7.14. Community Participation One of the main features about integrated development planning process is the involvement of

community and stakeholder organizations in the process. Participation of affected and interested

parties ensures that the IDP addresses the real issues that are experienced by the citizen of Lekwa

Municipality. As part of its public participation process, the municipality has established the

following structures to promote community participation;

IDP Steering Committee

IDP Technical Committee

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IDP Representative Forum

Traditional Leaders

Intergovernmental Relations (IGR)

HIV & AIDS Council

Transport forum

It should however be mentioned that due to the vastness of the Municipal area additional efforts should be made to ensure that public participation is meaningful.

The democratically elected stakeholders will be involved in the public participation process. However, to improve the effectiveness of the process, it is intended to split the participation in two ways.

Identifying of stakeholders, experts or professional bodies in communities.

Identifying of local representatives on grass-roots level through ward councillors. The process could follow the following route:

To identify all relevant participants per sector and per ward to inform them of the IDP processes.

To nominate councillors responsible for the IDP as well as responsible committees.

To advertise broadly through the local press for any stakeholders to identify themselves.

To initiate general consultative meetings of each critical step for the process of the IDP in order to gain fair consensus on the finding.

To workshop sectoral plans at each critical step, with all relevant local stakeholders per ward through the ward councillors.

The participation strategy will address the following issues:

Available resources for participation

Roles of different role-players during the participation process (e.g. councillors, the IDP Steering Committee, the IDP Representative Forum, other officials, consultants, etc.)

Appropriate participation tools

Means of information dissemination

Means of eliciting and collecting community needs (including documentation of participation inputs)

Time frames to allow responses, comments, inputs

Means of encouraging representation of unorganized groups

Frequency of meetings / workshops

Appropriate venue for the meetings / workshops

All efforts will be made to comply with the legal requirements of Public Participation

7.15. Risk Management Committee The Risk Management Committee has been established by the Municipality (Municipality) to assist the Municipal Manager to fulfil her/his Enterprise Risk Management (ERM) and control responsibilities in accordance with the requirements of the Municipal Finance Management Act (MFMA), 2003 and to assist Council with regard to matters set out in this document.

Purpose of Risk Management

The Risk Committee will provide oversight of the risk management process.

The Risk Committee will monitor the management of significant risks which may prevent the Municipality from meeting its objectives

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The Risk Committee will facilitate communication between all parties engaged in risk management activities.

The Risk Committee will report to the Municipal Manager on the risk management work undertaken and the extent of any action taken by management to address areas identified for improvement.

Terms of Reference

The Municipal Manager is responsible for the total process of risk management, including ensuring that operating units under her/his controls have effective, efficient and transparent systems of financial management, risk management and internal control.

The Risk Committee shall:

Review and assess the integrity of the risk control systems and ensure that the risk policy and strategies are effectively managed;

Set out the nature, role, responsibility and authority of the Risk Management function within the Municipality and outline the scope of risk management work;

Monitor the management of significant risks to the Municipality, including emerging and prospective risks;

Together with the Municipality’s Senior Manager Legal Services, the Risk Committee will review any legal and regulatory matters that may have a significant impact on risk including any related compliance policies, programmes and reports received from government;

Review management and internal audit reports detailing the adequacy and overall effectiveness of the Municipality’s risk management process (including scope and depth) and its implementation by management;

Reviewing any findings and recommendations of the external auditors, internal auditors or other parties in relation to risk management and internal control, confirm that appropriate action has been taken;

To review and approve the risk policy, strategy and implementation plans. The Risk Committee will ensure compliance with such policies, and with the overall risk profile of the Municipality;

Review risk identification and assessment methodologies;

Review and approve the risk tolerance limits of the Municipality;

To have due regard for the principles of governance and codes of best practice;

Establishing the risk management framework/ guidelines (including the process and reporting requirements) to be used in managing and reporting on risk;

Monitoring the reporting of risk by management with particular emphasis on significant risks or exposures and the appropriateness of the steps management has taken to reduce the risk to an acceptable level;

Monitoring progress on action plans developed as part of the risk management process;

Reviewing the impact of any changes in the Municipality on the risk management process and the response to these changes including the update of the risk profile;

Developing and subsequently reviewing policy on fraud prevention, detection and investigation;

Evaluating the effectiveness of the Fraud and Corruption Policy;

Reviewing reports of significant incidents and major frauds (both potential and actual) including the elevation of the effectiveness of the response in investigating any loss and preventing future occurrences:

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Significant incidents are defined as any event which results in, or has the potential to result in serious personal injury (to the public, staff or third parties) or serious physical damage to property, plant, equipment, fixtures or stocks.

Providing feedback to the audit committee on the effectiveness of internal control having evaluated and managed.

Considering the key risks and assessing how which they have been identified, evaluated and managed.

Assessing the effectiveness of the related system of internal control having particular regard to the impact of weaknesses that have been reported.

Considering whether necessary actions are being taken promptly to remedy weaknesses.

Considering whether the findings indicate a need for more extensive monitoring of the system on internal control.

Ensuring that, in accordance with an appropriate cycle, the reports, taken together, cover all aspects of internal control.

Considering other risk management issues referred to it by the Municipal Manager.

Develop goals, objectives and key performance indicators to measure the effectiveness of the Risk Management Committee

7.15.1. RISK MANAGEMENT PLAN The Risk Management implementation Plan forms part of the Risk Management process of the municipality and must therefore be read in conjunction with inter-alia the Risk Management Policy, the Risk Management Strategy.

The Risk Management implementation Plan describes how the Risk Management Strategy is to be implemented during the 2015/16 financial year.

In the compilation of the Risk Management implementation Plan, the municipality adheres to the guidelines as suggested by the National Treasury.

The municipality reviews and updates its Risk Management implementation Plan on an annual basis.

PURPOSE

The Risk Management implementation Plan is prepared to give effect to the implementation of the Risk Management Policy and Strategy and it sets out all risk management activities planned for the 2015/16 financial year.

OBJECTIVE

The primary objective of risk management implementation plan is to facilitate the execution of risk management. The risk management implementation plan for the Institution was prepared to give effect to the implementation of the risk management policy and strategy and sets out all risk management activities planned for the 2015/16 financial year.

Approach

The development of the risk management implementation plan has taken into consideration:

the risk management policy;

the risk management strategy;

available resources;

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Urgency, quick wins and sustainability.

DETAILED RISK MANAGEMENT IMPLEMENTATION PLAN

The detailed risk management implementation plan is included below.

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Planned Action Detailed Actions Outputs Due date and responsible person

Progress to date

Develop risk management methodologies and processes

One on one and group meetings as well as workshops with all role prayers.

Approved risk assessment methodologies and processes

Chief Risk Officer

03 August 2015 – 14 August 2015

Facilitate enterprise-wide risk assessments.

Compilations of a draft enterprise risk register.

Circulating the draft enterprise risk register for comments/inputs.

Finalization of the enterprise risk register

Approved strategic risk register

Chief Risk Officer

30 August 2015

Distribution and publication of updated risk assessment for the 2015/16 financial year.

Email enterprise risk register together with Strategic and Unacceptable risks to Executive Management, MMC's, Chairpersons of Oversight Committees, Municipal manager, Risk Owners, Action owners, as well as the Chairperson of the Audit Committee and CAE

Approved operational risk registers (as per the agreed cycle)

Chief Risk Officer

01 September 2015

Implementation of Barn owl system(Risk management system)

Procurement and installation of Barn owl system for risk management process

Fully functional automated risk management system(Barn owl RM module)

Chief Risk Officer

01 July 2015

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Implementation of Barn owl system(Risk management system)

Barn owl training to relevant officials

Well trained officials on (Barn owl RM module)

Chief Risk Officer

31 July 2015

Raising awareness on fraud and corruption.

Develop and formalise detailed training programme/ plan for all officials and any cost implications.

Completed orientation for all officials.

Chief Risk Officer 03 August 2015 – 14 August 2015

Development of risk response strategies

Drafting action plans for all gaps identified in addressing the top risks.

Action plans implemented per agreed milestone

Risk Owner

On going

Drafting of individual key risk indicators for the top risks

Develop a mechanism of reporting on top 10 risks

Analysis report of key risk indicators per agreed frequency

Risk Owner

On going

Structures and responsibilities

The CRO to develop the risk management unit structure and Risk Management Committee and present it the Accounting Officer to review and recommend for approval by Council

Additional structure created and approved as required

Appointment

Accounting Officer / Council

30 June 2015

31 July 2015

In progress

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into approved positions and structure

Enterprise risk audit per department

Perform a details risk audit per department to identify strategic, operational and compliance risk

ERM audit reports

Chief Risk officer

September – October 2015

Review of the audit report by Risk Management Committee(RMC)

Submit detailed audit findings report to RMC for inputs and comments

Review ERM audit report.

30 October 2015

Facilitate the execution of ERM processes and infrastructure.

Implement appropriate risk reporting to the Accounting Officer, Executive Authority, Audit Committee, RMC and Senior Management.

Approved progress reports: present progress reports to various stakeholders at various intervals.

Chief Risk Officer

Quarterly

Institutional Incident reporting

Collect detail incident report information to various department

Monthly incident report

Chief Risk Officer 10th of each month

Monthly dashboard reporting

Compile top 10 high risks and report them using dashboard reporting template

Individual risk dashboard report

Chief Risk Officer

Monthly(10th of each month)

Assess risks controls effectiveness

Assign assurance providers to assess the controls of medium and low risks identified (monitored risks).

Combined assurance plan

Report on risks controls assessed

Internal Audit

As per internal audit plan

Reviewal of Risk Review the risk management

policy, risk management strategy, Reviewed Chief Risk Officer,

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management policies and strategies

Fraud and Corruption prevention plan, Fraud policy, submit to Risk Management Committee for reviewal.

policies

RMC

Apr 2016

Ensure risk management processes and methodologies are reviewed independently.

Audit of risk management effectiveness

Performance audit report

Status reports on risk management implementation.

Internal / External Audits

As per AG and internal audit plan

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8. CHAPTER 8: INTEGRATED HUMAN SETTLEMENT AND DISASTER MANAGEMENT PLAN

8.1. DISASTER MANAGEMENT PLAN The Disaster Management Act (No 57 of the compilation of a Disaster Management Plan as part of the IDP. In order to comply with the requirements of the Municipal Systems Act, a disaster 2002) requires of local government to develop a disaster management policy and establish a disaster management centre in accordance to the national and provincial frameworks. The main responsibility for disaster management is assigned to District Municipalities in consultation with the local municipality to determine the level of the Prevention, mitigation, preparedness strategies.

8.1.1. The Purpose of Disaster Management Plan

The purpose of a Disaster Management Plan is to enhance the capacity of the municipality to prevent and to deal with disasters and to avoid developments, which are subject to high risk of disasters. Disaster Management Framework, Plan and Centre are interrelated. The scope of disaster management as required by the Act broadly entails three domains as outlined hereunder: -

Disaster Planning

Hazard identification

Risk and Vulnerability assessment

Disaster Preparedness and Response

Monitoring of threats

Activating contingency plans

Informing National & Provincial Centre

Deploying response resources to the scene of incident

Managing the resources

Monitoring of disaster intervention activities

Declaring of a “State of Disaster” Disaster Recovery

Planning for the recovery

Disaster recovery activities

Monitoring of disaster recovery activities

Documentation of disaster occurrences and actions taken

Post-mortem analysis to improve systems, plans and methodologies

Because the local municipality is not the responsible agency for disaster management, but form an integral part of disaster management within the district, a disaster management plan is produced. This plan addresses only the local municipal area of jurisdiction and will be aligned with the Disaster Management Plan of the Gert Sibande District and Mpumalanga Provincial Centre, once it is published.

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8.1.2. POSSIBLE TYPES OF DISASTERS, COMMUNITIES AT RISK AND ITS EFFECTS

The following table indicates likely types of disasters, the communities at risk and the effects associated with these disasters:

TYPE OF DISASTER COMMUNITY AT RISK EFFECTS

Floods Low laying areas in Lekwa Municipality.

Loss of life

Loss of property and livestock

Damage to infrastructure

Leaking of hazardous substances, sewage, etc.

Disruption of economic and social activities

Lack of potable water

Spreading of diseases

Heavy snowfalls High lying areas, particularly along the borders and also along the R23 and other areas within Lekwa municipality

Loss of life




Lack of food and warm clothing

Veld fires Farming areas and informal settlements

Loss of life





Drought Lekwa local but in particular farming areas

Loss of life




Lack of food, Lack of potable water

Fires in built-up areas Lekwa, particularly densely populated settlements and CBD

Loss of life




Transportation Accidents: Lekwa along major transportation networks

Loss of life

- Rail Loss of property and livestock

- Air Damage to infrastructure

- Road Spillage of hazardous substances

- Pipeline

Spillage of hazardous and toxic substances

Lekwa along major transportation networks.

Pollution

Health risks

Loss of biodiversity, Loss of life

Diseases Lekwa and the neighbouring community

Health risks, Loss of life

Loss of livestock

Unrest Lekwa Loss of life

Mass Events Loss of property and livestock


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8.1.3. POSSIBLE PREVENTION AND MITIGATION MEASURES

The following table indicates likely types of disasters, the communities at risk and the possible mitigation measures to prevent disasters from happening:

TYPE OF DISASTER COMMUNITY AT RISK PREVENTION AND MITIGATION MEASURES

Floods Low laying areas, Standerton, Sakhile, Rooikoppen, TLC and Sivukile.

Prevent illegal occupation of land in low laying areas

Ensure that townships are established outside 1:50 year flood line

Plan open spaces along rivers and water courses

Heavy snowfalls High lying areas, particularly along the border

Ensure that buildings are properly constructed to cope with weight of snow on roof structures

Traffic accommodation

Salt placement (National Road Agency)

Early detection system

Effective communication lines between service delivery agencies

Information distribution

Emergency shelter and meals

Emergency patient treatment

Emergency communication system

Emergency rescue and extrication

Emergency administration functions

Emergency financial assistance

Veld fires Farming areas and informal settlements

Awareness campaigns

Pre-emptive burning

Firebreaks

Drought Lekwa but in particular farming areas

Improved farming practices

Storage of potable water source

Irrigation scheme

Fires in built-up areas Lekwa particularly densely populated settlements and CBD area

Fire hydrants

Density control measures

Fire walls between buildings

Transportation Accidents: Lekwa along major transportation networks

Improved road conditions

- Rail Regular maintenance of transportation infrastructure

- Air

- Road

- Pipeline

Spillage of hazardous and toxic substances

Along major transportation networks and workstations such as Engine and Spoor net

Lower driving speed of hazardous substances

Emergency response plan

Diseases Lekwa and its neighbouring community

Awareness campaigns


Unrest Lekwa Emergency response plan

Mass Events Lekwa, auditorium, stadiums and public halls


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8.1.3. PREPAREDNESS AND INSTITUTIONAL CAPACITY

The municipality has fire brigade and traffic control service based in Standerton and a satellite

centre based in Sivukile which can be deployed as first responders to assist with disaster

management. The institutional capacity is therefore limited and outside assistance will be required

in cases of a disaster. It is also of utmost importance that the staff will attend further training in

various aspects.

Appointment of Disaster Management Advisory Forum

The Disaster Management Advisory Forum as outlined in the table below will constitute the Disaster

Management Team in terms of the regulations of the Disaster Management Act.

Members need to comply with the following:

Apply on the official form

Authorization in terms of Section 8 of the Act.

Residing within the area of jurisdiction of the local authority.

The Chief Disaster Management declared him to be a member and fit, physically as well as

mentally.

Be 14 years of age and above.

Commit him/her on the official application form to render services and to be trained.

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DISASTER MANAGEMENT ADVISORY FORUM

DISASTER MANAGEMENT ROLE-PLAYERS CONTACT LIST

FUNCTIONARY INITIALS & SURNAME Cell No. Tel. No. Fax. No. Postal Address Email Address

OFFICE OF THE MAYOR Cllr. C.M.MORAJANE 079 886 5301 017-712-9635

017 712-6808 Lekwa municipality P.O. Box 66 Standerton 2430

MUNICIPAL MANAGER MR LB TSHABALALA 083 739 1075 0177129 660

017 712 1240

Lekwa municipality P.O. Box 66 Standerton 2430

DISASTER MANAGEMENT CENTRE

MR. N.J.A. KOCK

082 855 3497 0177 129 661 0177 125 551

177 129 661 Lekwa municipality P.O. Box 66 Standerton 2430

COMMUNITY SERVICES AND SAFETY

MS. M RADEBE 072 340 9434 017-7123- 549 0177 129 678

177 125 670 177 123 422

Lekwa municipality P.O. box 66 Standerton 2430

TECHNICAL & ENGINERRING

S.KOUNE 079 507 7983 0177 129 815 017712 9814 Lekwa municipality P.O. Box 66 Standerton 2430

ENVIRONMETAL & TOURISM

MR. J VAN WYK 0177 129 826 017 712 9814 Lekwa municipality P.O. Box 66 Standerton 2430

FINANCE MR K DUBA

082 958 5186 177 129 814 Lekwa municipality P.O. Box 66 Standerton 2430

CORPORATE SERVICES TM.GAMA 072 6873882 177 129 632 Lekwa municipality

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P.O. Box 66 Standerton 2430

OFFICE OF THE MAYOR MR. S.B. MKHWANAZI

Lekwa municipality P.O. Box 66 Standerton 2430

WASTE MANAGEMENT MS. M.MADISHA Lekwa municipality P.O. Box 66 Standerton 2430

TRAFFIC MANAGEMENT Mr. G MOFOKENG 017 712 8802 Lekwa municipality P.O. Box 66 Standerton 2430

LEGAL SERVICES MR. S.S. NKOSI 074 847 9146 Lekwa municipality P.O. Box 66 Standerton 2430

IT MS. P. NCOKWANE 082 855 3538 Lekwa municipality P.O. Box 66 Standerton 2430

HOUSING MR. D. RADEBE Lekwa municipality P.O. Box 66 Standerton 2430

FIRE & RESCUE Mr. N.J.A.KOCK 082 855 3497 017 712 5551 017 712 5458

017 712 129 661 Lekwa municipality P.O. Box 66 Standerton 2430

OCCUPATIONAL HEALTH & SAFETY

MR. T. MOFOKENG

083 733 5471 177 129 645 Lekwa municipality P.O. Box 66 Standerton 2430

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8.1.4. CONCLUSION

Each agency or state organ will be responsible for its own disaster management contingency plan

which will be submitted to the Disaster Management Centre for inclusion in the Municipal IDP.

These should focus mainly on the following aspects:-

Planning and framework – the way in which the concept of disaster management is to be

applied in its functional area, e.g. roles and responsibilities.

Risk and vulnerability Assessment leading to needs analysis

Evaluation and description of infrastructure

Prevention through risk elimination – remove hazards/alternative processes.

Mitigation through risk reduction – engineering solutions/legislative compliance/safety

culture

Preparedness planning for risks that cannot be eliminated (Risk Management) (a)

contingency planning based on risk and vulnerability (b) emergency Organization, (c)

response planning, (d) notification and activation, (e) recovery plans for business continuity.

Contingency strategies and emergency procedures in the event of a disaster.

Line of communication (Protocols) and liaison

Awareness and education – (Before) prevention and mitigation: (During) notification and

advisories: (After) Advisory, public information and education.

Evaluation and maintenance

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8.2. INTEGRATED HUMAN SETTLEMENT CHAPTER The Housing Sector Plan/ Housing Chapter is a summary of the housing planning undertaken by a municipality and should be used together with the IDP. The Housing Chapter is a 5 year plan which is reviewed annually. It should be done as part of the IDP process and the summary of the housing planning undertaken becomes a chapter in the IDP. Therefore it is not a comprehensive, stand-alone plan resulting from a separate planning process. The Housing Sector Plan/ Housing Chapter, and its contents, in the context of sustainable human settlements, would consist of:

An analysis of the housing demand;

A strategy for the supply of housing;

A set of designed and prioritized housing projects;

The integration of the housing strategies and projects with the other sectors to achieve sustainable human settlements; and

An adopted IDP with a Housing Chapter.

Settlement Households

Land Ownership

Services Geo-tech Environmental Impact assessment

Township Establishment

Sakhile Ext. 1

224 Municipal land

Sewer, water, roads, toilet, and electricity

Not done Not done Done

Sakhile Ext 2

600 Residents owned

Sewer, water, roads, toilet and electricity

Done Not done Done

Sakhile Ext 3

235 Municipal land



Sakhile Ext 4 (known as Roolkoppen)

3276 Municipal land

Sewer, water, and 75% roads


Sakhile Ext. 5 (TLC)

179 Municipal land



Standerton Ext 6

1800 Municipal land

Sewer, water, roads, toilet and electricity


Azalea Ext 1 (H-Camp & Mahala Park)

454 Municipal land

Water Not done Not done Done

Sakhile Ext 4

282 Municipal land

Sewer, water, and 30% roads


H-camp 189 Municipal land

Sewer, water, and roads


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8.2.1. The main purposes of the Housing Sector Plan are:

To ensure the effective allocation of limited resources (specifically financial and human) to a large pool of potential development interventions.

To provide a formal and practical method of prioritizing housing projects and obtaining political consensus for the sequencing of their implementation.

To ensure more integrated development through bringing together the relevant cross-sectoral role players to coordinate their development interventions in one plan.

To provide greater spatial linkages between the spatial development framework and the physical implementation of projects on the ground.

To ensure that there is a definite housing focus for the IDP.

To provide a critical link between integrated developments planning and the practical reality of delivering housing projects on the ground.

To ensure effective subsidy budgeting and cash flows both at the local municipal and provincial levels.

8.2.2. The main expected outputs from the Housing Sector Plan are:

A priority implementation list of the relevant housing projects in the municipal area.

Preliminary assessment of the technical and social feasibility of all projects in the municipal area.

Confirmation of IDP linkages for all prioritized projects.

Coordination of MIG and other funding for projects.

Confirmation of stakeholder involvement in the development process.

Cash flows and broad project programmes.

Transfer of skills to Local Municipalities.

In the case of Lekwa the Housing Sector Plan should include a Rural Housing Strategy. The general aim of the strategy is the eradication of rural housing backlog and the enhancement of the quality of housing. The strategy should address the following:

Lack of reliable data on the nature and extent of the housing backlog.

Identification of need of rural communities.

The need to create new or adjust existing subsidy mechanisms to accommodate the challenges of farm worker accommodation.

Identification of well-located and suitable land for housing development.

The provision of basic services could prove a challenge if houses are to be built on private property.

The ability of farm workers and occupiers to sustain the cost of housing and associated rates and service charges that will arise in most off-farm settlement options.

Identification of different housing typologies.

The capacity of the municipality, within rural contexts, to manage planning of service provision.

The strategy will contribute to poverty alleviation, infrastructure development, job creation and the absence of basic services.

In the case of Lekwa a Compaction and Densification Strategy should be developed for Standerton and Sakhile. It should deal with new densities, mixed use nodal forming, infill development and redevelopment of lower density areas. The strategy’s more specific objective is to:

Ensure optimal and efficient use of infrastructure, services, facilities and land.

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Support the development of a viable public transport system and improve levels of access, especially by the poor, to the City’s resources and amenities.

Provide a framework and guidelines for the assessment of development proposals that promote densification.

Provide homeowners and property investors with certainty regarding the areas that will be targeted for various types of densification.

Protect, manage and enhance the natural and built environment and significant cultural landscapes.

Ensure that the scale and character (in terms of bulk, height, and architectural styling if necessary) of the higher density areas is appropriate to the immediate context.

Support the development of mixed land uses providing for vitality, opportunities and integrated living environments.

Contribute to place-making and the development of attractive and safe urban environments

Distribution of Informal Settlements

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9. CHAPTER 9: MUNICIPAL TRANSFORMATION & INSTITUTIONAL DEVELOPMENT

9.1. MUNICIPAL COUNCIL The Lekwa Council consists of 30 Councillors, made up of 15 ward councillors and 15 proportional representative councillors. The African National Congress

has 23 councillors, the Democratic Alliance with 6 councillors, the PAC with 1 councillor. There are 12 women councillors and 18 male councillors.

Fig: The Municipal Council Members

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9.2. The Structure of Troika & Mayoral Committee In addition to the Mayoral Committee the following committees have been appointed in terms of Section 80(1) of the Local Government Structures Act 117 of 1998:

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Chief Whip

Executive Mayor

MMC Corporate Services & Community Services

MMC Technical Services & Development

Planning

Speaker

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9.3. ORGANIZATIONAL DESIGN

Divisions o Legal Services

o Secretariat Services

o Human Resources

o Intergovernmental

Relations

o Communication

o Information

Technology

o Office of the

Executive Mayor

o Office of the Speaker

o Office of the Chief

Whip

LEKWA LOCAL MUNICIPALITY FUNCTIONAL AREAS Approved 31 Mar 2015 (Q3)

Executive Manager Corporate

Services Budget & Treasury Office Executive Manager Technical

Services Executive Manager Community

Services & Safety

Municipal Manager

Divisions Electro-Mechanical

Maintenance Electricity and

Transport

Water & Sanitation

Roads and Works

Project Management Unit

Divisions Traffic and Safety

Licensing

Fire and Disaster

Management Environment, Sport,

Recreation, Arts &

Culture Environmental Health

Services

Libraries

Divisions Budget & Financial

Reporting Income

Expenditure

Debt Collection

Supply Chain

2014/2015

1

Executive Manager Development and Planning

Divisions Land Development &

Planning Integrated

Development and Planning

Town Planning

Human Settlement

Local Economic Development

Projects

4/10/2015 Lekwa Local Municipality Approved Organogram 2014/2015

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LEKWA LOCAL MUNICIPALITY OFFICE OF THE MUNICIPAL MANAGER 2014/2015

Approved 31 Mar 2015 (Q3)

Municipal Manager LB Tshabalala

800060

Senior Manager Internal Audit

Vacant

Secretary to the Municipal Manager

KP Gamede – 800116

Internal Audit

Officer P Sibanyoni

800058

Internal Audit

Officer H. Raletsoho

800477

3

Manager Satellite Office Morgenzon

TS Khumalo - 211101

Vacant (0) Unfunded Vacant - Funded

Manager PMS B Tilly 116334

Manager Risk B.T. Hlatshwayo

800498

Manager in Office of the Municipal Manager

Vacant (0)

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LEKWA LOCAL MUNICIPALITY CORPORATE SERVICES OFFICE OF EXECUTIVE MANAGER CORPORATE SERVICES 2014/2015

Executive Manager Corporate Services S.S. Nkosi - 800479

Manager H. Resources ZJ Mtsweni

011072

Manager Secretariat TM Gama

710087

31 Mar 2015 (Q3)

Secretary to the Executive Manager Corporate Services

S. Bok - 111111

Approved

10

Senior Legal Administration Officer

Vacant 2014-11-18

Manager IGR T Mtshiselwa

116630

IT Manager Vacant

Manager Communication

Vacant (0)

Manager in the Office of the Executive Mayor SB Mkhwanazi-312303

Manager in the Office of the Speaker

D Galela-111094

Manager in the Office of the Chief Whip S. Mjiyako

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LEKWA LOCAL MUNICIPALITY BUDGET & TREASURY OFFICE OFFICE OF THE CHIEF FINANCIAL OFFICER

2014/2015 Approved

31 Mar 2015 (Q3)

Chief Financial Officer Vacant 2014-11-08

Secretary to the Chief Financial Officer

I Edwards - 510878

Manager Budget & Financial Reporting KN Duba - 800057

Deputy Chief Financial Officer

Vacant

Supply Chain Manager L Joubert 210837

Manager Income MJ Jacobs

210789

Manager Expenditure S. Mamabolo

800003

21

Manager Debt Collection & Indigent - Vacant

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LEKWA LOCAL MUNICIPALITY COMMUNITY SERVICES AND SAFETY OFFICE OF EMCSS 2014/2015


Executive Manager Community Services & Safety

M.E. Radebe 800497

Chief Fire & Disaster Management Officer NJA Kock - 800114

Chief Traffic Officer TL Mofokeng

800042

Manager Environment, Sport,

Recreation, Arts & Culture

HL Bronkhorst - 510839

Chief Licensing Officer RM Jackson

101827

Secretary ME Mphuthi

800076

35

Manager Environ. Health JG Van Wyk

310175

Chief Librarian Vacant

Operational Manager Vacant (0)

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LEKWA LOCAL MUNICIPALITY TECHNICAL SERVICES OFFICE OF THE EXECUTIVE MANAGER TECHNICAL SERVICES 2014/2015


Secretary Vacant 2014-12-26

Executive Manager Technical

Services

Vacant

Call Center Operator TJ Mogomotsane

800092

Manager Electricity & Transport

M.M. Mabunda -

800495

43

Call Center Operator Vacant

Manager Water & Sanitation

M. Legodi - 800481

Manager Roads & Works

Z. Mngadi - 800400

Project Management Unit

S. Kuona - 800434

Engineer Electro-Mechanical Maintenance

Vacant

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50

LEKWA LOCAL MUNICIPALITY DEVELOPMENT AND PLANNING OFFICE OF THE EXEC. MANAGER DEV. & PLANNING 2014/2015 31 Mar 2015 (Q3)

Approved

Executive Manager Development

& Planning S.T. Matladi - 800458

Manager Land & Planning

J Prinsloo - 411201

Manager Housing DD Radebe

102028

Manager LED R Mkhabela

800273

Secretary to the Executive Manager Development & Planning

G.P. Malinga - 800450

Manager Town Planning Vacant

Projects Manager SD Dlamini

102116

Manager IDP KE Mahlangu

800025

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9.4. HUMAN RESOURCE DEVELOPMENT STRATEGY

9.4.1. OVERVIEW

The Human Resource strategy responds to the long-term development plans of the municipality as reflected in the Integrated Development Plan of the municipality. The HR profile of the municipality is reflective of the local community and the country. It includes all activities relating to the rendering of a comprehensive human resource management function to Council by ensuring an efficient personnel administration system, recruitment and selection, sound labour relations, human resources development, employment equity, occupational health and safety of employees and compliance with all relevant labor legislation. Our staff is informed and supportive of municipality vision and mission and strategic direction and has knowledge of vacancy rates in the municipality.

Occupational Levels Male

Female

Foreign

Nationals

Total

A C I W A C I W Male Female

Top management 3 0 0 0 0 0 0 0 0 0 3

Senior management 7 0 0 7 3 0 0 0 1 0 18

Professionally qualified and experienced specialists and mid-management

4 1 1 0 2 0 0 0 0 0 8

Skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents

67 4 0 15 55 6 0 5 0 0 152

Semi-skilled and discretionary decision making

50 0 0 3 3 0 0 0 0 0 56

Unskilled and defined decision making

221 1 0 0 29 2 0 0 0 0 253

TOTAL PERMANENT 352 6 1 25 92 8 0 5 1 0 490

Temporary employees 29 0 0 0 20 0 0 0 0 0 49

GRAND TOTAL 381 6 1 25 112 8 0 5 1 0 539

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Employees with disabilities only in each of the following occupational levels: Note: A=Africans, C=Coloureds, I=Indians and W=Whites

9.4.2. Organizational review

An analysis of the workforce profile of the Lekwa Local Municipality (see table above) reveals the following:

Gender representation/composition in the total workforce: Black Males account for 73.27% against Black Females of only 20.41% when the Economically Active Population figures indicate 49.50% and 42.20% respectively. Black Males must be brought down to 49.50% and Black Females more than doubled to 42.20% of the workplace profile in line with the EAP figures. One of the priorities must therefore be to increase Black Female representation across all occupational categories and levels from the current 20.41% to 42.20%. People with disabilities in the total workforce: People with disabilities account for only 0.61% of the total workforce as against the 2 % of the government undertaking to reach as target by 2010. People with disabilities generally still continue to hover below the 1% mark. Government initially made an undertaking that the representation of people with disabilities should have constituted 2% of the Public Service by the end of 2005. However, this was not reached and government moved the achievement of the 2% target to 2010. We are now in 2012 and the representation of people with disabilities both in government and in the private sector is still well below the 1% mark.

Occupational Levels Male

Female

Foreign

Nationals

Total

A C I W A C I W Male Female

Top management 0 0 0 0 0 0 0 0 0 0 0

Senior management 0 0 0 0 0 0 0 0 0 0 0

Professionally qualified and experienced specialists and mid-management

0 0 0 0 0 0 0 0 0 0 0

Skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents

1 0 0 0 0 0 0 1 0 0 2

Semi-skilled and discretionary decision making

0 0 0 0 0 0 0 0 0 0 0

Unskilled and defined decision making

1 0 0 0 0 0 0 0 0 0 1

TOTAL PERMANENT 2 0 0 0 0 0 0 1 0 0 3

Temporary employees 0 0 0 0 0 0 0 0 0 0 0

GRAND TOTAL 2 0 0 0 0 0 0 2 0 0 3

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The municipal main goals/objectives of the institution are to achieve equity in the workplace through the promotion of equal opportunities and fair treatment for all its employees, as well as applicants for employment by:

Eliminating unfair discrimination that may exist in policies, practices, procedures and the work environment.

Implementing affirmative action measures to redress the disadvantages experienced by designated groups in the past.

Promoting diversity and respect for all employees.

Achieving equitable representation of all demographic groups at all levels and in all categories of the workforce as ultimate tangible objective.

9.4.3. EMPLOYMENT PRACTICE POLICY

This policy is intended to create a framework for decision‐making in respect of employment practice/s in the Lekwa Local Municipality. As such it attempts to establish a set of rules for the consistent interpretation and application of collective agreements and legislation governing the acquisition of staff by the Lekwa Local Municipality.

9.4.4. TRAINING AND DEVELOPMENT POLICY

The Lekwa Local Municipality believes that its employees form the cornerstone of service delivery to the communities within the Municipality. It therefore adopts a policy of giving priority to the training and development of its staff, within the parameters at what is feasible and sensible in the context of the municipality’s resource deployment requirements. It will identify and assess the training needs and potential of staff, match it with the requirements of the Municipality and afford all employees the opportunity to develop their potential, improve their performance and advance their career prospects within the municipality. Special attention will be paid to training and development opportunities for employees belonging to designated groups.

9.4.5. STAFF RETENTION POLICY

The objective of this policy is to establish an environment which will best ensure the retention of employees within the municipality, especially employees with valued or needed skills or experience in critical fields, so as to enable the Municipality to fulfill its functions, including that of service delivery.

9.4.6. PERFORMANCE MANAGEMENT POLICY

The objectives of implementing a performance management system include:

Facilitates strategy (IDP) deployment throughout the municipality and align the Organization in executing its strategic objectives;

Facilitate increased accountability;

Continues and sustainable service delivery improvement;

Create an organizational performance culture;

Provide early warning signals;

Develop open and constructive relationship between customers, leadership and employees;

Encourage reward for good performance;

Manage and improve poor performance;

Link performance to skills development and career planning, therefore encourage learning and growth; and Comply with legislative framework.

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9.4.6. HEALTH AND SAFETY POLICY The Lekwa Local Municipality and its staff believe that the prevention of injuries and exposure to disease of all the employees is of paramount importance to the organisation in its quest to be a leader in health and safety. Furthermore, management acknowledges its responsibility and moral obligation to provide a safe and healthy workplace. We will strive to be proactive in the recognition of risks with the objective of reducing exposure to injury and disease. Involvement will be at all levels and the responsibility will be shared by everyone, in order to reach the objectives.

9.4.7. EMPLOYMENT EQUITY POLICY

The purpose of this policy is to state the broad principles of employment equity to which the Municipality is committed and to describe in general how the Municipality seeks to realise these principles. This policy document does not constitute the Employment Equity Plan of the Lekwa Local Municipality, but simply sets out the framework and guiding philosophy that will govern an Employment Equity Plan.

9.4.7. HUMAN RESOURCE PLAN

The Human Resource Plan will focus mainly on three levels: entry level, internal environment management level and exit level

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ENTRY OF PEOPLE (Recruitment, selection, induction and orientation, remuneration and benefits )

PRIORITY PROJECTS OUTPUT DUE DATE BUDGET

ENTRY LEVEL Review of the organizational structure Revised organizational structure Dec 2016 R0 Develop a Human Resource Recruitment and Retention Strategy

Human Resource Recruitment and Retention Strategy

Dec 2014 R0

Ensure qualitative implementation of the Employment Equity Plan

Realization of set employment equity targets with regard to gender and people with disabilities in Employment Equity Plan

Jun 2016 R0

Management of all leave types Leave Management Module Dec 2014 R0 DEVELOPMENT OF PEOPLE

(Training, Promotion and Progression, Performance and Talent Management, Culture, Leadership etc)

PRIORITY PROJECTS OUTPUT DUE DATE BUDGET INTERNAL ENVIRONMENT MANAGEMENT LEVEL

Develop and update Job Descriptions Job Descriptions Dec 2014 R0 Develop Human Resource Development Strategy

Human Resource Development Strategy Jun 2014 R0

Ensure implementation of the Workplace Skills Plan to at least 80% of planned training

Workplace Skills Plan and Training Report Jun 2014 R0

Publicize all newly developed and adopted HR policies

Register of inducted employees Dec 2014 R0

Conduct employees satisfaction survey Report on the survey Dec 2015 R100 000

EXIT OF PEOPLE (Death, Injury on Duty, Terminal illness, Retirement Resignation and Dismissal)

PRIORITY PROJECTS OUTPUT DUE DATE BUDGET

EXIT LEVEL Determination of future (five years) human resource requirements – Human Resource Planning

Human Resource Requirements (five years) Sep 2014 R0

Ensure compliance with the Occupational Health and Safety Act

Implementation of the Occupational Health and Safety Policy

Dec 2014 R0

Introduce medical surveillance programmes Periodical medical surveillance report Jun 2015 R100 000

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RM OPERATIONAL PLAN (in order of priority)

STRATEGIC GOAL NAME OF HR

PROJECT KEY MILESTONE YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 CURRENT STATUS

Ensure alignment of organogram to the Integrated Development Plan (IDP).

Review the organizational structure

Organizational structure aligned to IDP

Expert advice obtained on the current structure, reviewed and consultation undertaken

Necessary approval obtained and new organizational structure implemented

Current structure not properly aligned to IDP

Recruitment of competent staff.

Develop Human Resource Recruitment Strategy

Human Resource Recruitment Strategy

Draft strategy developed and consultation undertaken

Strategy approved and implemented

No Human Resource Recruitment Strategy in place

Redress gender imbalances.

Ensure qualitative implementation of the Employment Equity Plan

Employment Equity Plan

Seventy five percent (75%) of employment equity targets for 2014/2015 with regard to gender and disability realized

Eighty percent (80%) of employment equity targets for 2015/2016 with regard to gender and disability realized

Ninety percent (90%) Employment equity targets for 2016/2017 with regard to gender and disability realized

Employment Equity targets currently not realised

Promote culture of performance in the municipality.

Management of all leave types

Leave managed to in line with the conditions of service (SALGBC agreements)

Re-introduce the leave Schedule in all departments and improve monitoring and reporting on the different leave types

Monitor and control absenteeism

Some adverse findings by Auditor General


Development and update of Job Descriptions

Job Descriptions for all jobs in the municipality and updated periodically

Officials trained in the writing of Job Description and JD developed

New Job Descriptions implemented

Certain jobs without Job Descriptions and most not up-dated

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Training and development to ensure responsiveness.

Develop Human Resource Development Strategy

Human Resource Development Strategy

Draft Strategy and consultations

Strategy approved and staff inducted

Strategy merged in municipal processes

No Human Resource Development Strategy in place

Training and development to ensure responsiveness.

Ensure implementation of Workplace Skills Plan to at least 80% of planned training

Eighty percent (80%) implementation of the Workplace Skills Plan

Seventy percent (70%) implementation of the Workplace Skills Plan

Eighty percent (80%) implementation of the Workplace Skills Plan

Workplace Skills Plan implemented at 50% of planned

STRATEGIC GOAL NAME OF HR PROJECT

KEY MILESTONE YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 CURRENT STATUS


Publicize all newly developed and adopted Human Resource Policies

All employees inducted on the newly developed Human Resources Policies

Inducted all employees on the newly developed HR Policies

Draft Human Resources Policies


Conduct employee satisfaction survey

Employee satisfaction survey report

Survey conducted and results interpreted

Implementation of recommendations of the survey and measurement of progress

Employee morale low.


Determination of future (five years) human resource requirements – Human Resource Planning

Human Resources requirements (five years)

Database of vacancies (projections) in the next five years created

Human Resource Policy developed, consultation undertaken and approval obtained

No projections on future human resource requirements

Ensure safety and healthy environment.

Ensure compliance with the Occupational Health and Safety Act

Compliance with the Occupational Health and Safety Act

Occupational Health and Safety Committee re-established, members trained

Occupational Health and Safety meetings held quarterly

Some compliance with Health and Safety Act

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and monthly meetings held

Ensure safety and healthy environment.

Introduce medical surveillance programs in line with the Occupational Health and Safety Policy

No medical surveillance programs

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10. CHAPTER 10 PROGRAMMES AND PROJECTS FOR 2015/2016

10.1. WATER AND SANITATIONS PROGRAMME

Project Code

Project Classification

Project Description Ward Budget Implementing Agent

Source

WS001 Water and Sanitation Upgrading of the Standerton Waste Water Treatment Works

4 R15 M Technical Services

MIG

WS002 Water and Sanitation Installation of Bulk Water Infrastructure and Replacement of AC pipes in Lekwa Local Municipality

Cross-cutting wards

R9 M Technical Services

MIG

WS003 Water and Sanitation Installation of Boreholes in Lekwa Municipality in farm areas

9,12,& 13 R1,5 M Technical Services

MIG

WS004 Water and Sanitation Installation of Sanitation services in Rural areas of Lekwa LM

9,12,& 13 R1,3 M Technical Services

MIG

WS005 Water and Sanitation Project Management Unit R1.4 M Technical Services

MIG

WS006 Water and Sanitation Operations and maintenance support Cross-cutting wards

R3,000 M Technical Services

GSDM

WS007 Water and Sanitation Water Quality testing Cross-cutting wards

R350,000 Technical Services

GSDM

WS008 Water and Sanitation Water conservation and demand management

Cross-cutting wards

R2,000 M Technical Services

GSDM

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10.2. INTEGRATED HUMAN SETTLEMENT PROGRAMME

Project Code

Project Classification Project Description Ward Budget Implementing Agent

Source

IHS001 Adequate housing and improved quality environment 250 units in informal settlements

Ext 6 & 7 R10 800 IHS DHS


Ext 6 & 7 R27 737 IHS DHS


Ext 6 R1 109 IHS DHS

IHS004 Adequate housing and improved quality environment

250 UNITS IRDP Phase two Various areas R27 737 IHS DHS

IHS005 Adequate housing and improved quality environment 10 Units IRDP Phase two Various areas R1 109 IHS DHS

IHS006 Adequate housing and improved quality environment 10 Units IRDP Phase two Various areas R1 109 IHS DHS

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10.3. SASOL SLP/LOCAL ECONOMIC DEVELOPMENT PROGRAMME

Project Code


Source

SRMD001 Mine community development Rural water provision Ward 9, 12,13 R3,1M DP SASOL

SRMD002 Mine community development Installation of electricity Transformer Cross-cutting R17 M DP SASOL

SRMD003 Mine community development Construction of a fire station and related vehicles

Cross-cutting 12M DP SASOL

SRMD004 Mine community development Multi-purpose centre Location to be decided

R6 M DP SASOL

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10.4. ELECTRICITY PROGRAMME

Project Code

Project Classification

Project Description Ward Budget Implementing Agent

Source

ELE001 Energy and electricity Electrification of RDP house in Standerton Extension 8

9 R1.7 M Technical Services

INEP

ELE002 Energy and electricity Electrification of 53 rural houses 11 R1.5 M Technical Services

INTERNAL

10.5. EDUCATION PROGRAMME

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Project Code


Source

CIJ001 CIJA PRIMARY SCHOOL

CIJA PRIMARY SCHOOL Demolishing of existing pit toilets and construction of 4 new ablution units

WARD 9 R443 172

DOE DOE

EMT001 EMTHINI PRIMARY SCHOOL

Demolishing of existing pit toilets and construction of 4 new ablution units

WARD 13 R443 172

DOE DOE

FUD001 FUDUQHUBEKA PRIMARY SCHOOL Demolishing of existing pit toilets and construction of 4 new ablution units

WARD 13

R639 758

DOE DOE

GUD001 GUQUKA PRIMARY SCHOOL Demolishing of existing pit toilets and construction of 4 new ablution units

WARD 13 R443 172

DOE DOE

INS001 INSIMBI PRIMARY SCHOOL


WARD 13 R443 172

DOE DOE

ISIF001 ISIFISISETHU PRIMARY SCHOOL


WARD 15 R3 147 083

DOE DOE

ISUY001 ISIYALU PRIMARY SCHOOL Provision of bulk power (electricity) and connection of existing buildings

WARD 9 R1500000 DOE DOE

JAN001 JANRELL SECONDARY SCHOOL


WARD 9 R2 655 618

DOE DOE

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KLIP001 KLIPPOORT PRIMARY SCHOOL


WARD 9 R1 377 809

DOE DOE

MAT001 MATALAZA PRIMARY SCHOOL


WARD 9 R639 758

DOE DOE

OUD001 OUDEHOUTSPRUIT PRIMARY SCHOOL


WARD 9 R443 172

DOE DOE

RIET001 RIETSPRUIT PRIMARY SCHOOL


WARD 12 R443 172

DOE DOE

ROND001 RONDAVEL PRIMARY SCHOOL


WARD 9 R836 344

DOE DOE

SKOOT001 SKOONUITSIG PRIMARY SCHOOL

WARD 13 R836 344

DOE DOE

COT001 COTHOZA PRIMARY SCHOOL


WARD 13 R443 172 DOE DOE

10.6. ENVIRONMENTAL PROGRAMME

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Project Code


Source

W001 Waste Management Conduct Environmental Impact Assessment for Development of a New Cell at Morgenzon Landfill Site

Ward 14 R1000 000 DEDET DEDET

PC001 Parks & Cemetery Rehabilitation of River Park Ward 10 R623 MIG MIG

PC002 Parks & Cemetery Development of New Cemetery for Lekwa LM

Municipal wide R550 DEDET DEDET

10.7. SECTOR PLANS PROGRAMME

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Project Code


Source

RS001 Roads and storm water Review of Pavement management System plan

Municipal wide R600 Technical Services

Lekwalm

RS002 Roads and storm water Storm-water master plans Municipal wide R600 Technical Services

Lekwalm

FD001 Fire and disaster Disaster management plan Municipal wide R600 CSS Lekwalm

DP001 Development Planning Incentive and Investment Strategy Municipal wide R600 DP Lekwalm

DP002 Development Planning Tourism Development & Branding Strategy

Municipal wide R600 DP Lekwalm

MM001 MM Office Performance Management Framework

Municipal wide R600 MM Lekwalm

DP003 Development Planning Encroachment Policy Municipal wide R350 DP Lekwalm

E001 Electricity Electricity Master plan Municipal wide R700 Technical Services

Lekwalm

DP004 Development Planning Land Use Management By-Law (SPUMA)

Municipal wide R100 000 DP Lekwalm

DP005 Development Planning Bulk Contribution Policy –

Municipal wide R100 000 DP Lekwalm

DP006 Development Planning Densification in Stan-west to create +/-140 residential stands –

Municipal wide R4 000 000 (Excluding infrastructure)

DP Lekwalm

10.7. TRAFFIC & SAFETY PROGRAMME

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Project Code


Source

TS001 Ensure compliance to the Road Traffic Act

Traffic Law Enforcement

All Wards

Operational

Road Safety & Community Liaison

RSCL

TS002 Implementing road safety education programmes

Road Safety Education

All Wards

Operational Road Safety & Community Liaison

RSCL


Traffic Administration and Licensing

All Wards

Operational


RSCL


Overload control

All Wards

Operational


RSCL

TS005 Educational Awareness Campaigns

Conducting educational awareness campaigns to fight against crime

All Wards

Operational


RSCL

TS006 Integrated crime prevention initiatives

Conducting educational awareness campaigns to fight against crime

All Wards

Operational


RSCL

TS007 Tourism Safety Monitors Lekwa: Standerton (9) Total = 9

Tourist Safety Education

All Wards

Operational


RSCL

TS008 Monitoring and evaluation of police stations

Monitoring of SAPS to provide service to communities

All Wards

Operational


RSCL

TS009 Domestic Violence Act audits

Monitor compliance to implementation of the

All Wards

Operational


RSCL

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Domestic Violence Act

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10.8. ANGLOAMERICAN PROGRAMMES

Project Code


Source

ANG001 Anglo Community Development 4X Gravity Compactor Refuse 4x Rea Load Compactor 1x Landfill Compactor 4x Tipper Truck 2x Front-End Loader 1X Personnel Bus

Municipal wide R16,374,636 Technical New Denmark

ANG002 Anglo Community Development Storm-water Drainage System Municipal wide R2,000,000 Technical New Denmark

ANG003 Anglo Community Development Maths and Science Investment Municipal wide R2,000,000 Technical New Denmark

ANG004 Anglo Community Development Vegetables and Hydroponics Municipal wide R9,162,438 Technical New Denmark

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11. CHAPTER 11: MUNICIPAL SECTOR PLANS

The following are some of the significant sector plans or programmes that are available in the Municipality in order to ensure the effectiveness and efficient implementation of the IDP.

11.1. LAND-USE MANAGEMENT SYSTEM (To be developed for Council adoption)

The objective of this plan is to formulate, develop and implement appropriate planning instruments to effectively guide and control land use and development, which will protect and enhance property ownership and value, and which will establish a balanced living environment.

The LUMS is a single and flexible system used to manage land within a municipal area. Land Use Management is a combination of all the tools and mechanisms used by a municipality to manage the way land is used and developed. These tools include inter alia: land use schemes; by-laws; licensing; rates and general property information. Municipalities are required to undertake land use planning in terms of the Municipal Systems Act No. 32 of 2000. A Land Use Management System is aimed at co-ordinating all land uses and their relationship to each other - ensuring certainty, order and compatibility of land uses.

11.2. WATER SERVICE DEVELOPMENT PLAN (Outdated need to be reviewed) This is a business plan which sets out the way in which the water services authority plans and delivers water services to individuals and businesses in its area of jurisdiction. It should be done as part of the IDP process and the summary of the housing planning undertaken becomes a chapter in the IDP. Therefore it is not a comprehensive, stand-alone plan resulting from a separate planning process. With the publication of the Water Services Act 108 of 1997, all water services authorities are required to prepare a Water Services Development Plan (WSDP). This is a business plan which sets out the way in which the water services authority plans and delivers water services to individuals and businesses in its area of jurisdiction

It must also describe the current and future consumer profile, the type of services that are provided, the infrastructure requirements, a water balance, organizational and financial arrangements to be used, an assessment of the viability of the approach, and an overview of environmental issues.

Following these analyses, important issues that may impact on the provision of effective and sustainable water and sanitation services need to be identified and strategies must be formulated to improve service provision.

11.3. INTEGRATED HUMAN SETTLEMENT CHAPTER PLAN (Council Resolution: A12/2012-01-27

The Housing Sector Plan/ Housing Chapter are a summary of the housing planning undertaken by a municipality and should be used together with the IDP. The Housing Chapter is a 5 year plan which is reviewed annually. It should be done as part of the IDP process and the summary of the housing planning undertaken becomes a chapter in the IDP. Therefore it is not a comprehensive, stand-alone plan resulting from a separate planning process. The Housing Sector Plan/ Housing Chapter, and its contents, in the context of sustainable human settlements

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11.4. LOCAL ECONOMIC DEVELOPMENT AND TOURISM STRATEGY (Outdated need to be reviewed)

The LED and Tourism Strategy focus on aspects such as the branding and image of the Municipality (and the urban settlements), it’s economic (re)positioning in terms of the global economy, tourism and all aspects related to the urban space economy. The main focus of the LED should be on the following:

The main focus of the LED and Tourism is on the on the following aspect as envisaged in the SDF:

Promote and support sustainability of existing businesses.

Promote small and micro sized rural enterprises.

Tourism growth and promotion: conferencing, casino, motels game farms, natural sites ect.

Creation of job opportunities.

Industries to support SMME activities.

Improve skills development.

Increase the revenue potential of the Municipality.

Develop the business potential of the area.

Establish the municipality as one of preference for national and international visitors.

11.5. INFRASTRUCTURE INVESTMENT PLAN (To be developed for Council adoption) The Municipal Infrastructure Investment Plan sets out a basis whereby Municipalities can plan programme and budget for meeting the infrastructure service needs in their areas. The Infrastructure Investment Plan seeks to provide a strategic direction in ensuring provision of sound, safe, environmentally friendly and sustainable infrastructure services to all residents. It also outlines the infrastructure investment plan for the next five years and the resources required meeting the plan objectives and National or Provincial policy guidelines.

The plan covers the maintenance, upgrading, refurbishment and provision of new electricity, water, sanitation, housing, buildings and road infrastructure within the Municipality’s area of jurisdiction. This plan will assist the Municipality to:

Determine the extent of infrastructure to be provided,

Determine the capital expenditure required to provide this infrastructure,

Methods of financing the capital expenditure,

Determining the operational expenditure to operate and maintain the service delivery,

Methods of raising revenue to cover the operating expenditure, and

Develop monitoring and management systems.

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11.6. PERFORMANCE MANAGEMENT PLAN (Need to be reviewed)

The Municipal System Act (2000) requires municipalities to develop a performance management system that is commensurate with its resources. The development and implementation of a performance management framework has the following benefits:

Inform executive decision making processes;

provide an early warning signal of problematic areas where the municipality is likely to under-perform; and

Create a culture of organizational performance measurement.

An organization’s strategic plan is its foundation, and it is the foundation for an effective performance measurement system. The City will take into consideration the need to continuously ensure the alignment of its performance management system with its IDP. This will be realized by always ensuring that whenever the IDP is reviewed, the performance targets and performance indicators of the revised programmes and projects also reviewed to cover new changes.

11.7. SOCIAL NEEDS ASSESSMENT PLAN (To be developed for Council adoption)

A separate needs assessments should be done for:

Education

Health

Sport, recreation and culture

It should include development of a plan and implementation to establish detailed status quo of all infrastructure, including mapping and establishing of current infrastructure.

Through the needs assessment, a clearer picture of the current situation, as well as existing gaps, can be obtained, which in turn will simplify the process of evaluation, planning and implementation of programmes and projects.

11.8. OPEN SPACE PLAN (To be developed for Council adoption)

The aim of an Open Space Plan is to establish a thorough understanding on the intrinsic value of Open Space and to then develop a visionary roadmap towards the creation of an exceptional Open Space network for the city and its people.

The objectives for such a framework are:

To create a detailed data and information base on all Open Spaces within the municipal area, including conservation areas and strategically important Open Space resources;

To establish the status of the open space resources as a vital and valuable physical and economic resource within the municipal area;

To develop an Open Space network based on a defined vision, goals, principles, typologies and categories on municipal and regional scale;

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To develop Principles and Policy Statements as a basis for consistent and integrated decision making by the local authority regarding issues affecting Open Space resources;

To provide Principles and Policy Statements as a basis for informing all scales of land use and infrastructure planning and development;

To provide an Institutional and Management Framework to ensure the effective and collaborative planning, implementation and administration of the Open Space network;

To inform the acquisition and disposal of Open Space; and

To provide a Framework within which development activities within the city comply with the National Environmental Management Amendment Act, 2004 (Act 8 of 2004).

11.9. URBAN EDGE POLICY (To be developed for Council adoption)

The delineation of an urban edge in order to:

Control sprawl.

Direct development in appropriate areas and

Assist in countering the outward pressure for urban expansion.

This policy should also contain guidelines for the development inside and outside the urban edge.

11.10. ENCROACHMENT ON PROPERTY POLICY (In draft form) Lekwa Local Municipality hereby, in terms of Section 13(a) of the Local government: Municipal Systems Act, 2000 (Act No 32 of 2000), publishes the Encroachment on Property By-laws for the Municipality, as approved by its Council, as set out hereunder. The content of this policy entail the following components;

Council permission required

Rules for the construction of projections

Columns

Balconies and bay windows

Plinths, pilasters, corbels and cornices

Verandas around corners

Pavement openings

Maintenance, removal and tenancy of projections

Paving of footways or pavements under or in front of encroachment

Projections

Offences and penalties

Repeal of by-laws

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Short title

11.11. INVESTMENT AND INCENTIVES STRATEGY (In draft form)

The aim of the Investment promotion and incentive policy is to provide a framework for the uniform development of incentives in Municipality that will assist to:

Attract major national and international investors.

Retain and boost existing investment.

Support investment into projects identified in the IDP and the SDF

An investment can be defined as “the warehousing of capital or assets in the open market for a defined period with the intention of declaring a yield at the end of the defined period.” (Gildenhuys,1997).In the complex world of risk, change, and different tax regimes, investment managers tend to rely more on the “satisfying behaviour” than the systematic evaluation of investment outcomes, when it comes to a decision to invest. The open market system comprises mainly the Western hemisphere countries and Asia where the amount of capital inflows in these economic hubs determines the size and profitability of investments made. The rate of these capital flows is used as an indicator of confidence to invest. It is therefore not surprising that the dominant markets are found in Europe, United States and Asia as compared to the developing economies, of which South Africa is one. This phenomenon explains the importance of direct foreign investment for any developing economy.

An incentive can be defined as:

Stimulus

Motivating influence

Serving to incite to action

Something that arouses to effort or action

In economics, additional payment offered to workers to boost production

11.12. DISASTER MANAGEMENT PLAN (Outdated need to be reviewed)

The purpose of a Disaster Management Plan is to enhance the capacity of the municipality to prevent and to deal with disasters and to avoid developments, which are subject to high risk of disasters. Disaster Management Framework, Plan and Centre are interrelated. The scope of disaster management as required by the Act broadly entails three domains as outlined hereunder: -

Disaster Planning

Hazard identification

Risk and Vulnerability assessment

Prevention, mitigation, preparedness strategies

Contingency planning

The monitoring and evaluation of disaster planning Key Performance Indicators.

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Disaster Preparedness and Response

Monitoring of threats

Activating contingency plans

Informing National & Provincial centre

Deploying response resources to the scene of incident

Managing the resources

Monitoring of disaster intervention activities

Declaring of a “State of Disaster”

Disaster Recovery

Planning for the recovery

Disaster recovery activities

Monitoring of disaster recovery activities

Documentation of disaster occurrences and actions taken

Post-mortem analysis to improve systems, plans and methodologies

Because the local municipality is not the responsible agency for disaster management, but form an integral part of disaster management within the district, a disaster management plan is produced. This plan addresses only the local municipal area of jurisdiction and will be aligned with the Disaster Management Plan of the Gert Sibande District and Mpumalanga Provincial Centre, once it is published.

11.13. INTEGRATED ENVIRONMENTAL MANAGEMENT PLAN (Shared service at GSDM)

An EMP is a document created by Gert Sibande District Municipality to provide a framework for dealing with the pollution risks associated with the local municipal activities. In many cases, it simply formalizes practices already undertaken on projects sites by municipalities.

Integrated Environmental Management (IEM) is designed to ensure that the environmental consequences of development proposals are understood and adequately considered in the planning process. The term environmental is used in its broad sense, encompassing biophysical and socio-economic components.

The purpose of the IEM is to resolve or mitigate any negative impacts and to enhance positive aspects of development proposals.

The definition of IEM according to the Department of Environmental Affairs and Tourism, (1998) is: A philosophy which prescribes a code of practice for ensuring that environmental considerations are fully integrated into all stages of the development process in order to achieve a desirable balance between conservation and development.

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The vision for IEM, according to the Department of Environmental Affairs and Tourism, (1998), is to lay the foundation for environmentally sustainable development based on integrated and holistic environmental management practices and processes.

Gert Sibande District’s IEM include the following basic principles of IEM

The basic principles underpinning IEM are that there be:

informed decision-making;

accountability for information on which decisions are taken;

accountability for decisions taken;

a broad meaning given to the term environment (i.e. one that includes physical, biological, social, economic, cultural, historical and political components); GSDM Integrated Environmental Plan

an open, participatory approach in the planning of proposals;

consultation with interested and affected parties;

due consideration of alternative options;

an attempt to mitigate negative impacts and enhance positive aspects of proposals;

an attempt to ensure that the ‘social costs’ of development proposals (those borne by society, rather than the developers) be outweighed by the ‘social benefits’ (benefits to society as a result of the actions of the developers);

democratic regard for individual rights and obligations;

compliance with these principles during all stages of the planning, implementation and decommissioning of proposals (i.e. from “cradle to grave”), and

The opportunity for public and specialist input in the decision-making process. (Department of Environmental Affairs, 1992).

11.14. PAVEMENT MANAGEMENT SYSTEM (Outdated need to be reviewed)

The Pavement Management System is a subset of the Road Infrastructure Management System. The use of a Pavement Management System is generally accepted as being essential for determining the maintenance needs of road networks in a scientific manner. Implemented in a sequence of phases, it first identifies maintenance projects from a visual assessment of the pavement condition within the road network. It then determines the most economical alternative maintenance treatment. A Pavement Management System enables road authorities to establish their budget requirements objectively, as well as maintaining control over the pavement performance.

The system deals with the first phase: visual assessment of the pavements in the network. Maintenance projects are given in order of priority that places special emphasis on the advantages of preventative maintenance. Possible project types range from routine maintenance (e.g. patching), special maintenance including various forms of surface treatment, through to heavy rehabilitation (e.g. heavy overlays and reconstruction).The system, inter alia, provides answers to the following questions:

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• What is the present condition of the pavements from a surfacing, structural and functional point of view?

• Which sections should be scheduled as rehabilitation projects in a 2 to 5 year program?

• Which sections should be resurfaced this year and the next in order to forestall incipient structural deterioration?

• What type of maintenance will be most cost effective in each case?

• What funds are required to carry out the suggested maintenance program, so as to bring the network to an acceptable level of service and to alleviate unnecessarily expensive maintenance in the future

11.15. STORM-WATER MANAGEMENT SYSTEM (Outdated need to be reviewed)

The objectives of this study are:

• Define existing system and status quo.

• To identify, analyse and quantify identified storm water problems in the areas of Municipality

• To give preliminary remedial measures and cost calculations for identified problems.

• To give guidelines regarding storm water drainage through developing areas within the identified areas.

The Lekwa Municipality appointed Africon Engineering to compile a hydrological model for the Lekwa area with specific mention of Morgenzon, Sakhile Ext:4 and Standerton Ext: 6 & 7 to provide storm water infrastructure where flooding may occur.

The scope of works is based on the proposal document which must be read in conjunction with this report. The scope included the following:

• Data collection by means of on-site inspection of the existing system.

• To compile a master plan for the Morgenzon, Sakhile Ext:4 and Standerton Ext: 6 & 7 area.

• To identify problem areas.

• To provide preliminary remedial measures

• To quantify the solutions by means of a basic cost estimate.

All cadastral information was received from the Municipality in AutoCAD format in dwg format. No as-built information was provided by LLM. As-built information was obtained by on-site verification of Morgenzon, Sakhile Ext:4 and Standerton Ext: 6 & 7 existing system. No information is available for Sakhile as the area is considered as being newly developed with no infrastructure in place.

Development of new infrastructure should be according to the standards set out in this report. It is suggested that the proposed storm water layouts, as proposed in this study, be followed. All drainage structures, including streets, should be designed to accommodate the run-off for 2-year and 20-year storm events as used in these models.

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11.16. COMPREHENSIVE INFRASTRUCTURE INVESTMENT PLAN (To be developed for Council adoption)

This plan serves to clarify the approach to be followed in assessing the infrastructure investment needs for this municipality. The following applies:

• The sheets for demography and housing have been completed

• The sheets for water have been completed

• The sheets for sanitation will be finalized in exactly the same basis as for water

• Summative roads requirements will be included as it is included in the MTEF

• Summative institutional capacity details will be collected per municipality - details will be submitted at the workshop

• Summary budget data have been proposed - this will be summarized once discussed with NT

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Documents

LEKWA LOCAL MUNICIPALITY IDP FOR 2015/ · PDF fileLEKWA LOCAL MUNICIPALITY IDP FOR 2015/2016 ... into account all the merits and demerits of pursuing the set objectives. ... • Integrate