final 2020/21 revised intergrated development plan · 1 table of contents ... tsassamba...
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Final 2020/21 Revised IDP Approved: 23 June 2020
TSANTSABANE LOCAL MUNICIPALITY
FINAL 2020/21 REVISED INTERGRATED
DEVELOPMENT PLAN
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Table of Contents
Foreword by Mayor………………………………………………………………………………..
Chapter 1: Introduction………………………………………………………………………….2
Municipal Functions………………………………………………………………………………..5
IDP aims………………………………………………………………………………………...….6
IDP Process followed……………………………………………………………………………..6
IDP Organizational Structures…………………………………………………………………...6
Public Participation………………………………………………………………………………..6
Ward Based Public Participation…………………………………………………………………8
Municipal Priorities……………………………………………………………………………….16
Chapter 2: Situational Analysis……………………………………………………………….17
Locating the Municipality…………………………………………………………………………17
Spatial Analysis…………………………………………………………………………………...18
Patterns and Trends……………………………………………………………………………...18
Population and Gender…………………………………………………………………………..19
Age…………………………………………………………………………………………………21
Socio Economic status…………………………………………………………………………...22
Educational levels………………………………………………………………………………...22
Labour Force……………………………………………………………………………………...22
Monthly income…………………………………………………………………………………...23
Social Infrastructure……………………………………………………………………………...24
Economic Analysis……………………………………………………………………………….24
Market Economy of Tsantsabane Local Municipality…………………………………………25
Basic Services…………………………………………………………………………………….28
Environmental analysis…………………………………………………………………………..32
Biodiversity………………………………………………………………………………………..32
Climate change…………………………………………………………………………………...33
Environmental threats……………………………………………………………………………33
NC state of Environmental Report………………………………………………………………33
ZFM DM Environmental Management Framework……………………………………………34
Chapter 3: Municipal Institutional analysis…………………………………………………35
Political Structure…………………………………………………………………………………36
Organizational Structure…………………………………………………………………………36
Human Capital…………………………………………………………………………………….37
Skills Development Plan…………………………………………………………………………37
Resources and Archives…………………………………………………………………………37
Organizational Policies…………………………………………………………………………..37
Municipal building………………………………………………………………………………...39
Information Technology………………………………………………………………………….39
Organizational Performance Management System…………………………………………...39
Service Delivery Budget Implementation Plan…………………………………………………40
Key Performance Indicators: Finance…………………………………………………………..41
Key Performance Indicators: Community Services……………………………………….…..41
Key Performance Indicators: Office of the Municipal Manager……………………………...41
Key Performance Indicators: Corporate Services…………………………………………….42
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Key Performance Indicators: Technical Services……………………………………………..42
Vission……………………………………………………………………………………………..45
Mission…………………………………………………………………………………………….45
Corporate values………………………………………………………………………………….46
Key Performance Areas………………………………………………………………………….46
Reviewed Programmes and Projects (2017/18 – 2021/22)………………………………….49
Chapter 5: Municipal Financial Planning…………………………………………………....86
Financial Viability…………………………………………………………………………………86
Revenue Generation Interventions……………………………………………………………..86
Expenditure Management Interventions……………………………………………………….86
Revenue…………………………………………………………………………………………...88
Breakdown of Grants…………………………………………………………………………….88
Employee Related Costs………………………………………………………………………..94
Capital Budget……………………………………………………………………………………94
Tarrifs……………………………………………………………………………………………...95
Property Rates……………………………………………………………………………………95
Operating Expenditure Framework…………………………………………………………. ..102
Free Basic Services: basic social service packages for indigent households……………102
Budget Challenges……………………………………………………………………………...103
Annual Budget Tables…………………………………………………………………………..103
Budget Process………………………………………………………………………………….118
IDP & SDBIP…………………………………………………………………………………….119
Financial Modelling……………………………………………………………………………..120
Overview of alignment………………………………………………………………………….121
Measurable Performance objects……………………………………………………………..129
Performance indicators and benchmarking…………………………………………………..132
Overview of Budget assumptions……………………………………………………………...133
Review of credit control…………………………………………………………………………134
Asset Management……………………………………………………………………………..134
Finance Management Policies…………………………………………………………………134
External Factors…………………………………………………………………………………135
General inflation outlook………………………………………………………………………..136
Interest rates…………………………………………………………………………………….136
Collection rate…………………………………………………………………………………...136
Salary increases………………………………………………………………………………...136
Ability of Municipality……………………………………………………………………………137
Overview of Budget funding……………………………………………………………………137
Cashflow Management………………………………………………………………………....140
Funding compliance…………………………………………………………………………….142
Expenditure of Grants…………………………………………………………………………..144
Councilor and employee benefits……………………………………………………………. .145
Monthly targets for revenue, expenditure and cashflow…………………………………….146
Contracts having future budgetary implications……………………………………………...148
Capital expenditure……………………………………………………………………………..148
Legislative compliance………………………………………………………………………….148
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GLOSSARY AIDS Acquired Immune Deficiency Syndrome
ANC African National Congress
BEE Black Economic Empowerment
CDW Community Development Worker
CIP Consolidated Infrastructure Plan
DBSA Development Bank of Southern Africa
DEAT National Department of Environmental Affairs and Tourism
DME Department of Minerals and Energy
DTI Department of Trade and Industry
DWAF National Department of Water Affairs and Forestry
EIA Environmental Impact Assessment
EMF Environmental Management Framework
EPWP Extended Public Works Programme
FET Further Education and Training
GDP Gross Domestic Product
GGP Gross Geographical Product
HIV Human Immune Virus
HOD Head of Department
HSSP Housing Sector Plan
IDP Integrated Development Plan / Planning
IWMP Integrated Waste Management Plan
LED Local Economic Development
MEC Member of Executive Committee
MFMA Municipal Finance Management Act
MIG Municipal Infrastructure Grant
MSA Municipal Systems Act
MTEF Medium Term Expenditure Framework
NSDP National Spatial Development Perspective
PGDS Provincial Growth and Development Strategy
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PHC Primary Health Care
PPP Public Private Partnership
SDBIP Service Delivery Budget Implementation Plan
SDF Spatial Development Framework
SEA Strategic Environmental Assessment
SMME Small, Medium, and Micro Enterprises
SoER State of the Environment Report
STATSSA Statistics South Africa
TLM Tsantsabane Local Municipality
TSASSAMBA Tsantsabane, Assmang & Kumba
TYC Tsantsabane Youth Council
WMP Waste Management Plan
WSDP Water Services Development Plan
FOREWORD BY MAYOR
South Africa, our beloved country, as a nation is suffocated by a sting of the most brutal national if not
international disaster borne by Corona Virus (COVID19). Our economy is brutally challenged, to a worse
degree, the international markets are severely tarnished. Let alone the lives of all humankind that are at
high risk of being infected (and killed) by this invisible enemy, and as a result, the country is facing a
national lockdown. Everything has taken a different shape, even our modus operandi is held at random.
But steadily so, we shall overcome.
However, in line with the provisions of the laws that govern the affairs of the municipalities, we have
embarked upon a process of consultation with the local communities, though in an unusual way, with a
view to present the IDP and Budget for the Budget for the 2020/21 Financial year.
In all material aspect, chapter 4 of the Municipal Systems Act 32 of 2000 makes community participation
in the affairs, programmes and activities of the community a legal obligation. This IDP is therefore the
culmination of a lengthy process of consultation with our local community.
In essence, this IDP carries the aspiration and mandate of the masses of our community which 2020/1
Budget seek to finance. Therefore, this IDP must be seen as an epitome of hope subjected to guide us
over the next financial year in our collective endeavours of building a better life for all our people during
and beyond COVID19 pandemic.
Central to this is the critical question of compliance with laws, rules and regulations that direct the
country. For an example, before May 2020, we must have presented to the Council the key budget for the
forthcoming financial year. On principle, section 24 of the Municipal Financial Management Act 56 of 2003
prescribes that: “...the final budget must be tabled 30 days before the start of the budget year.”
As a matter of fact, we remain committed to the realization of the stipulated 5 Key performance Areas of
the municipalities, being the following:
1. Basic Service Delivery and Infrastructure Development
2. Local Economic Development
3. Municipal Financial Viability and Management
4. Municipal Transformation and Organisational Development
5. Good Governance and Public Participation
This IDP in conjunction with its projects and implementation focus relates robustly to the capital budget.
Above all, our IDP and 2020/21 Budget will squarely zoom into improving the quality of life of our
community by broadening accessibility and alleviating poverty for better.
Cllr Mashila, MC
Mayor, Tsantsabane Local Municipality
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CHAPTER 1: INTRODUCTION AND PURPOSE
1.1. Legal Framework of the IDP
Constitution of South Africa: - Section 153, gives way to the developmental duties of local government,
while section 152 indicates that the municipality must strive, within its financial and administrative
capacity, to achieve the following objectives:
• to provide democratic and accountable government for local communities;
• to ensure the provision of services to communities in a sustainable manner;
• to promote social and economic development;
• to promote a safe and healthy environment; and
• to encourage the involvement of communities and community organisations in the matters of local
government.
Municipal Systems Act (2000)
Municipal Systems Act (MSA) section 25 (1) states that “each municipal council must, within a prescribed
period after the start of its elected term, adopt a single, inclusive and strategic plan for the development of
the municipality which:
a) links, integrates and co-ordinates plans and takes into account proposals for the development of
the municipality:
b) aligns the resources and capacity of the municipality with the implementation of the plan:
c) forms the policy framework and general basis on which annual budget must be based”.
The MSA is very clear on the internal systems that must be in place to allow the municipality to move
progressively towards the social and economic upliftment of its local communities. That a municipality
must undertake developmentally-oriented planning so as to ensure that it: strives to achieve the objects of
local government set out in section 152 of the Constitution and gives effect to its developmental duties as
required by section 153 of the Constitution.
This integrated development plan once adopted by the municipal council will be the principal strategic
planning instrument which guides and informs all planning and development, and all decisions with regard
to planning, management and development, in the municipality.
Municipal Finance Management Act (2003)
National Treasury states that “the MFMA aims to modernise budget, accounting and financial
management practices by placing local government finances on a sustainable footing in order to maximise
the capacity of municipalities to deliver services to communities. It also aims to put in place a sound
financial governance framework by clarifying and separating the roles and responsibilities of the council,
mayor and officials”.
Responsible for Oversight over Accountable to
Council Approving policies, IDP
and budget
Mayor and Executive Committee Community
Mayor & Executive
Committee
Policy, SDBIP & Council
Resolutions
Municipal Manager & Directors Council
Municipal Manager Outputs and
implementation
Administration Mayor & Council
Directors:- Finance,
Corporate Services,
Technical & Community
Outputs Financial management, Service
Delivery Operations
Management & Development
Municipal Manager
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Services Projects Facilitation
Table 1: The Financial Governance Framework
The MFMA (2003) obliges all municipalities to formulate service delivery and budget implementation plan
(SDBIP) annually. The SDBIP should be viewed as a performance contract between municipal council
and the community as well as municipal council and the administration. The SDBIP then provides a
summary of all the activities and targets that a municipality commits to deliver in the coming year.
The National Development Plan (vision 2030)
The Diagnostic Report released by the National Planning Commission in June 2011 identified challenges
and achievement that the country has registered since 1994. The report alluded to a failure to implement
policies and an absence of broad partnerships as the main reasons for slow progress and further alluded
to nine primary challenges confronting South Africa:
1. Very few people work
2. The quality of school education for black people is poor
3. Infrastructure is poorly located, inadequate and under-maintained
4. Spatial divides hobble inclusive development
5. The economy is unsustainably resource intensive
6. The public health system cannot meet demand or sustain quality
7. Public services are uneven and often of poor quality
8. Corruption levels are high
9. South Africa remains a divided society.
The Tsantsabane Local Municipality will in this IDP indicate how it intends to play a role in responding to
challenges identified by the National Development Plan (NDP).
Northern Cape Provincial Spatial Development Framework (PSDF, 2012)
The PSDF seeks to provide ways to addresses the key challenges of the Northern Cape, namely poverty
and inequality through the promotion of innovative economic intervention, which can only result from a
dynamic developmental state (NCPSDF Executive Summary, 2012: 9). The overarching goal of the PSDF
is to enhance the well-being of the people of the province and the integrity of the environment through the
efficient use of the resources of the province
Provincial Growth and Development Strategy (PGDS, 2011)
The PGDS, seeks to ensure sustainable economic growth and development and increased spatial equity
of that growth and development (PGDS, 2011: 6).
The principles of the PDGS;
• Equality – notwithstanding the need to advance previously disadvantaged people, development
planning should ensure that all persons should be treated equally.
• Efficiency – the promotion of the optimal utilisation of existing physical, human and financial
resources.
• Integration – the integration of spatially coherent regional and local economic development and
improved service delivery systems.
• Good Governance – the promotion of democratic, participatory, co-operative and accountable
systems of governance along with the efficient and effective administration of development
institutions.
• Sustainability – the promotion of economic and social development through the sustainable
management, utilisation of natural resources and the maintenance of the productive value of the
physical environment.
• Batho Pele – the placement of people and their needs at the forefront of its concern and to serve
their physical, psychological, developmental, economic, social and cultural interests equitably.
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• Mainstreaming - issues of women, children and persons with disabilities must be an integral part
of all planning processes, implementation and monitoring of all plans and activities (PGDS 2011:
11).
• The principles of the PDGDS have guided the developmental path of the municipality.
National Spatial Development Perspective (NSDP)
• The NSDP’s goal is to “fundamentally reconfigure apartheid spatial relations and to implement
spatial priorities that meet the constitutional imperative of providing basic services to all and
alleviating poverty and inequality” (NDSDP, 2006: 1). It seeks to ensure that there is accelerated
and shared economic growth, so as to reduce social exclusion and the levels of inequality. Some
areas or provinces have generally limited potential. These areas might not even have the
threshold that is needed to sustain the development that might be proposed for the area, so the
best thing is to invest in the personal development of people living in those areas thus the focus
should be on ‘PEOPLE NOT PLACES’ (NSDP 2003:27).
• According to the National Spatial Development Perspective, The ZFM District of which
Tsantsabane Local Municipality is a part of has been classified as “medium” importance area
which means that no significant investment is concentrated in the region. Whereas the region has
been classified as a “medium” rating area on most of the categories of development potential, it is
rated low on innovation and experimentation as well as the production of high value, differentiated
goods.
In most cases, the “medium” judgment of the NSDP hides a more comprehensive lack of real potential:
• Mining activities have been rapidly on the increase in the last few years. Agriculture has never
been a key feature of the local economy. There is no evident labour intensive manufacturing.
Manufacturing is in decline across the board.
• Retail and services: This is a growing sector of the economy, but its potential is very limited by the
smallness of the market and by the competitive proximity of Kimberley, which has taken a lot of
business away from the City.
• Useful investments have been and are being made in tourism, but the volume of tourists is simply
not sufficient to act as a driver of the economy.
• Solar Energy Project: there is growing development of solar plants within the ZFM District and
Tsantsabane Local Municipality.
Spatial Planning and Land Use Management Act (2014)
On the 3rd August 2013, the President of the Republic of South Africa, signed the SPLUMA. The Act
stresses the autonomy of local government as an authority of first instance when submitting development
applications. The Act alludes to what should be contained in a Spatial Development Framework, Land
Use Management schemes and how land management issues should be handled. On the 1st July 2015 the
Act came into effect and it transformed the land development application processes of the municipality.
The Tsantsabane Local Municipality has opted to be part of the District Municipal Planning Tribunal, which
will be responsible for taking decision regarding land use amendment applications.
Strategic Goals and Priorities of Z F Mgcawu District Municipality
• To monitor and determine the housing backlogs in the district as well as to inform the public on
housing information
• To assess and provide targeted support improving institutional capacity and service delivery
• capabilities of category B-municipalities
• To promote environmental health and safety of communities in the Z F Mgcawu District through
the
• proactive prevention, mitigation, identification and management of environmental health services,
fire
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• and disaster risks
• To promote safety of communities in the District through the proactive prevention, mitigation,
• identification and management of fire and disaster risks
• To market, develop and co-ordinate tourism in the Z F Mgcawu District
• To assess and monitor the status of infrastructure needs and requirements of B Municipalities
• To ensure efficient business operations and to fulfill the assurance statutory requirements of the Z
F Mgcawu District Municipality.
ZF Mgcawu District Municipality Spatial Development Framework (2012)
The spatial vision for the district is:
“An exciting mix of:
• Tourism: Cultural, wilderness, floristic, river tourism ranging from the Kgalagadi international trans
frontier park to the culture of the Riemvasmak community to river tourism on the mighty Orange
River ;
• Mining and mining beneficiation;
• Agriculture: river bank vineyards and expansive stock and game farming in the Kalahari; and
• Renewable energy technology opportunities.”
Tsantsabane SDF (2015)
The municipal spatial vision is “to create a place of opportunities, in cooperation with the private
sector, where the basic needs of all residents are met in a safe, healthy and sustainable
environment”.
The development objectives of the SDF are:
• “the integration of various areas in the municipal to form a well-functioning space economy
• the development of sustainable human settlements and renewal of existing settlements
• the promotion and facilitation of economic development
• the sustainable management of the natural environmental assets and heritage
• the promotion of tourism development
• the promotion of sustainable rural development
• the development and improvement of linkages with surrounding areas of importance
• service delivery, specifically focusing on providing sufficient capacity in development priority
areas” (Draft Tsantsabane SDF, 2015: 44).
Municipal Functions: - the Constitution of South Africa, section 151 (1) states that “the executive and
legislative authority of a municipality is vested in its Municipal Council”. Further that the objects of local
government are:
• to provide a democratic and accountable government for local communities
• to ensure the provision of services to communities in a sustainable manner
• to promote social and economic development
• to promote a safe and healthy environment
• to encourage the involvement of local government.
The Constitution of RSA: Schedule 4, Part B and Schedule 5, part B alludes to the municipal functions.
The IDP is a tool that assists the municipality to live up to its developmental mandate. The IDP process
gives the municipality an opportunity to take stock on the challenges that it is facing, what is has been
able to do and actions that need to be undertaken to improve the quality of life of those residing in the
municipal area.
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1.2 Purpose Of The IDP Document
Section 34 of the MSA requires a municipality to draft a five-year Integrated Development Plan (IDP) and
to review it annually. The Integrated Development Plan is a single, inclusive, strategic plan of a
municipality that clearly outlines the development objectives and provided a policy framework that would
guide management in decision-making related to budgeting and planning for the municipal area for the
2020/21 financial year. The annual review is necessary to assess work that the municipality has done to
improve the lives of those residing in the municipal area, to evaluate what still needs to be done and take
into account changing conditions.
The Municipal Systems Act (2000) directs for developmental local government Section 23 states that “a
municipality must undertake developmentally-oriented planning so as to ensure that it:
a) “strives to achieve the object of local government set out in section 152 of the Constitution;
b) gives effect to its developmental duties as required by section 153 of the Constitution; and
c) together with the other organs of state contribute to the progressive realization of the fundamental
rights contained in section 24, 25, 26, 27 and 29 of the Constitution”.
The IDP aims
The intention of compiling the IDP is to amongst others
• To articulate how the municipality aims to address and align with the national objectives of shared
growth, reduction of poverty and social inclusion;
• Determine the strategic priorities guiding the actions of the municipality for the next financial year
through linking and co-ordination between sectoral strategies;
• Aligning financial and human resources with implementation needs;
• Set out a strategically informed programmer of action for the medium-term revenue and
expenditure framework;
• Strengthening the focus on sustainable development;
• Provide the basis for annual and medium-term budgeting;
• Guide Council’s development decision-making;
• Enable legislative compliance; and
• Provide a monitoring and evaluation framework of the implementation of the IDP.
IDP process followed
Section 28 of the Municipal Systems Act (2000) indicates that “each municipal council, within a
prescribed period after the start of its elected term, must adopt a process set out in writing to guide the
planning, drafting, adoption and review of its integrated development Plan”. The IDP Process alludes to
how the review will unfold, who will take part in the process and how communities will be consulted in the
compilation of the 2020/21 IDP and Budget.
The Tsantsabane Municipal IDP Process Plan provided amongst others for the following:
• Institutional structures established for management of the process;
• Approach to public participation;
• Structures established for public participation;
• Time schedule for the planning process;
• Roles and responsibilities;
• Monitoring of the process.
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IDP Organisation Structures
• IDP Steering Committee: - facilitates the process of planning, implementation and management
of the IDP in the Municipality and plays a vital role in driving the process. The IDP Representative
Forum is the structure which keeps the Municipality accountable and, on the forum, different
representatives from the municipality sit on it. The Council approves the IDP and the
administration makes sure that the IDP objectives are achieved.
• IDP Representative Forum: -has been meeting on a quarterly basis in order to monitor and
evaluate the IDP process, project implementation, as well as to give inputs and make
recommendations regarding priority issues, objectives, strategies, projects and programs.
Public Participation
• The Constitution of the Republic of South Africa, Act 108 of 1996, places an obligation on
municipalities to encourage the involvement of communities and community organisations in the
matters of local government. With the promulgation of the Municipal Systems Act, 32 of 2000, the
attention of municipalities was focused anew on the need to encourage the involvement of
communities in the affairs of the municipality.
• Through public participation the municipality is able to make development plans and render
services that are more relevant to the needs and conditions of local communities. This in itself
empowers local communities to have control over their own lives and livelihoods.
• Section 16 of the Municipal Systems Act indicates that a municipality needs to develop a culture
of community participation. That “a municipality must develop a culture of municipal governance
that complements formal representative government with a system of participatory governance
and must for this purpose (a) encourage and create conditions for, the local community to
participate in the affairs of the municipality including the preparation, implementation and review
of the its integrated development plan in terms of Chapter 5”.
• TLM approved the 2020/21 Budget/IDP process plan in August 2019 however owed to reasons
that the Council will have to review its implementation failed to realize some milestones of the
process plan owed to mSCOA System and related municipal operational challenges.
Self-Assessment on the Planning Process
• A good participation process is characterized by commitment from the municipality and those
from the community that participate in the process. All relevant stakeholders that have an interest
in the IDP process were provided the opportunity to participate directly or through representation.
• The situational analysis and statistics presented in this chapter indicate the developmental
challenges facing Tsantsabane municipal area. This is crucial as it provides the municipality and
its social partners with deep insight into local socio-economic trends, patterns and development
challenges. The objective is to identify major strengths and weaknesses per geographical area as
well as ascertaining the available information and current development required.
• Issues highlighted during the ward based public participation process during 2019/20 public
participation still remained relevant in the development of this IDP. Below are development and
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service delivery inputs made and categorized per ward. The programs and projects in this IDP are
informed by this scenario.
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Ward Issues Raised Operational or Capital
Carnation Speed bumps for Cam Street Operational Budget
Carnation Lights are not functional Operational Budget
Carnation Sewerage that is leaking Operational Budget
Carnation Rubbish bins for the area Operational Budget
Carnation Park for the area Capital Budget
Carnation Rubbish in the area Operational Budget
Carnation Community had received letters about their stands that are not in line.(sizes) Operational Budget
Carnation Having problem with water meter that I don’t see, but I continue to receive account butterfly 19 Operational Budget
Carnation How Newtown shanties received services, what criteria had been used to numbers give them services, Operational Budget
Carnation Need toilets for our shanties, electricity and stands Capital Budget
Carnation What is there that the municipality will do for us immediately Operational Budget
Carnation Health and safety because we surrounded by mines.(dust) Operational Budget
Carnation Remove empty caravan in carnation, because its damaged and it’s a danger to the community, drug dealers seems to deal drugs there.Operational Budget
Carnation Church that we build in 1999 is still not in our ownership , we need a permanent place to build a church Operational Budget
Carnation We need a high mass light Capital Budget
Carnation Satellite police station Not for this Budget
Carnation We need a clinic or mobile clinic Not for this Budget
Carnation Because of the new houses that was built across the road I had a lot of damage to my house. Operational Budget
Carnation Please help us with a bridge to cross the railway, for vehicles and pedestrians. Capital Budget
Carnation We have continuous drain blockage at pineapple , protea str and cam street Operational Budget
Carnation water leaking problem Operational Budget
Carnation Continuously Illegal dumping Operational Budget
Carnation Engage private sector to help with temp toilets Operational Budget
Carnation Help us with service delivery in carnation Operational Budget
Carnation Mass lights Capital Budget
Carnation Pavement of our roads Capital Budget
Carnation Fulltime place to submit cv for the unemployed Operational Budget
Carnation Housing for carnation Not for this Budget
Carnation Library, pavement and park Not for this Budget
Groenwater A group of people who is also doing volunteer work does not receive stipend Operational Budget
Groenwater No bursaries for students Operational Budget
Groenwater Groenwater Stasie must be part of the IDP engagements Operational Budget
Groenwater How do the municipality recruitment is Groenwater part of the mun Operational Budget
Groenwater Fencing of graveyard Capital Budget
Groenwater Community need a speed bump in the main access road Operational Budget
Groenwater Need for a satellite police station Not for this Budget
Groenwater No recruitment are done of Groenwater by the municipality Operational Budget
Groenwater Youth unemployment in Groenwater Operational Budget
Groenwater Opportunities should be communicated directly to the community and not via someone Operational Budget
Groenwater Can there not be quarterly meetings with the municipality regarding service delivery Operational Budget
Groenwater The quality of the existing houses that are build are in a bad state Operational Budget
Groenwater There is a problem with the toilets sand are falling into the toilets Operational Budget
Groenwater Street lights does not work Operational Budget
Groenwater Satellite clinic does not make frequent visits to the area Not for this Budget
Groenwater People of Groenwater are paying R40 to Postmasburg to visit a clinic just to get no service Not for this Budget
Groenwater Council should make provision for a visit to Groenwater station Operational Budget
Groenwater No street names in Groenwater Operational Budget
Groenwater Unemployment is a problem in Groenwater Operational Budget
Groenwater Municipal staff drink on duty Operational Budget
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Ward Issues Raised Operational or Capital
Carnation Speed bumps for Cam Street Operational Budget
Carnation Lights are not functional Operational Budget
Carnation Sewerage that is leaking Operational Budget
Carnation Rubbish bins for the area Operational Budget
Carnation Park for the area Capital Budget
Carnation Rubbish in the area Operational Budget
Carnation Community had received letters about their stands that are not in line.(sizes) Operational Budget
Carnation Having problem with water meter that I don’t see, but I continue to receive account butterfly 19 Operational Budget
Carnation How Newtown shanties received services, what criteria had been used to numbers give them services, Operational Budget
Carnation Need toilets for our shanties, electricity and stands Capital Budget
Carnation What is there that the municipality will do for us immediately Operational Budget
Carnation Health and safety because we surrounded by mines.(dust) Operational Budget
Carnation Remove empty caravan in carnation, because its damaged and it’s a danger to the community, drug dealers seems to deal drugs there.Operational Budget
Carnation Church that we build in 1999 is still not in our ownership , we need a permanent place to build a church Operational Budget
Carnation We need a high mass light Capital Budget
Carnation Satellite police station Not for this Budget
Carnation We need a clinic or mobile clinic Not for this Budget
Carnation Because of the new houses that was built across the road I had a lot of damage to my house. Operational Budget
Carnation Please help us with a bridge to cross the railway, for vehicles and pedestrians. Capital Budget
Carnation We have continuous drain blockage at pineapple , protea str and cam street Operational Budget
Carnation water leaking problem Operational Budget
Carnation Continuously Illegal dumping Operational Budget
Carnation Engage private sector to help with temp toilets Operational Budget
Carnation Help us with service delivery in carnation Operational Budget
Carnation Mass lights Capital Budget
Carnation Pavement of our roads Capital Budget
Carnation Fulltime place to submit cv for the unemployed Operational Budget
Carnation Housing for carnation Not for this Budget
Carnation Library, pavement and park Not for this Budget
Groenwater A group of people who is also doing volunteer work does not receive stipend Operational Budget
Groenwater No bursaries for students Operational Budget
Groenwater Groenwater Stasie must be part of the IDP engagements Operational Budget
Groenwater How do the municipality recruitment is Groenwater part of the mun Operational Budget
Groenwater Fencing of graveyard Capital Budget
Groenwater Community need a speed bump in the main access road Operational Budget
Groenwater Need for a satellite police station Not for this Budget
Groenwater No recruitment are done of Groenwater by the municipality Operational Budget
Groenwater Youth unemployment in Groenwater Operational Budget
Groenwater Opportunities should be communicated directly to the community and not via someone Operational Budget
Groenwater Can there not be quarterly meetings with the municipality regarding service delivery Operational Budget
Groenwater The quality of the existing houses that are build are in a bad state Operational Budget
Groenwater There is a problem with the toilets sand are falling into the toilets Operational Budget
Groenwater Street lights does not work Operational Budget
Groenwater Satellite clinic does not make frequent visits to the area Not for this Budget
Groenwater People of Groenwater are paying R40 to Postmasburg to visit a clinic just to get no service Not for this Budget
Groenwater Council should make provision for a visit to Groenwater station Operational Budget
Groenwater No street names in Groenwater Operational Budget
Groenwater Unemployment is a problem in Groenwater Operational Budget
Groenwater Municipal staff drink on duty Operational Budget
Groenwater No jobs for people of Groenwater Operational Budget
Groenwater The ESKOM electricity boxes that need to be transferred from the Shanties to the houses Capital Budget
Groenwater School transport to and from Postmasburg is problematic Not for this Budget
Groenwater There is a need for ABET in Groenwater Not for this Budget
Groenwater A need for satellite police station Not for this Budget
Groenwater Sports ground must completed Capital Budget
Jenn Haven Access for clinic services. Not for this Budget
Jenn Haven no stipend for kgatelopele dev. Forum(ngo Operational Budget
Jenn Haven 7 rdp houses has been built. What about the rest? Not for this Budget
Jenn Haven No progress in the housing project-since 2011 idp. Not for this Budget
11
Ward Issues Raised Operational or Capital
Jenn Haven no job opportunity for jenn-haven community in the 3km access road. Operational Budget
Jenn Haven ECD centre to be upgraded by kolomela, waiting for the approval from the municipality for 3mnths Capital Budget
Jenn Haven Service of sites(shanties) Not for this Budget
Jenn Haven clinic Not for this Budget
Jenn Haven roads Capital Budget
Jenn Haven Informal settlement (erf numbers). Operational Budget
Jenn Haven No fencing for sewerage. Capital Budget
Jenn Haven signal at water borehole(water pump) Operational Budget
Jenn Haven no benefits for jenn-have community from road contractor. Operational Budget
Jenn Haven Cwp appointment criteria. Operational Budget
Jenn Haven employment at the municipality-jenn-haven is not accommodated Operational Budget
Jenn Haven skills development. Operational Budget
Jenn Haven informal settlement in the area. Not for this Budget
Jenn Haven political interference in work opportunities. Operational Budget
Jenn Haven Time frame for feedback Operational Budget
Jenn Haven land for agriculture Capital Budget
Jenn Haven no facilities for youth-they end up using drugs. Operational Budget
Jenn Haven time frame for road project. Capital Budget
Jenn Haven Jenn-haven community not allowed to use postdene clinic again. Not for this Budget
Jenn Haven Sewerage for the informal settlement area. Capital Budget
Jenn Haven Long term job opportunity for youth Operational Budget
Jenn Haven Sports facilities. Capital Budget
Jenn Haven Ways to maintain water Operational Budget
Jenn Haven No internet, cartridges and newspapers in the library Operational Budget
Jenn Haven Road in bad condition-full of stones. Operational Budget
Jenn Haven Serviced sites(coghsta) Capital Budget
Jenn Haven Informal settlement service, road, clinic. Not for this Budget
Jenn Haven Propose to write-off old debt. Operational Budget
Jenn Haven Hire someone to work at local office so that residents may pay. Operational Budget
Maranteng Ward 5 Every time we vote for empty promises Operational Budget
Maranteng Ward 5 Water in yards, corruption Operational Budget
Maranteng Ward 5 Budgie street, full gospel church road to be opened. Operational Budget
Maranteng Ward 5 We need church land in Maranteng Operational Budget
Maranteng Ward 5 Taxis can’t enter Maranteng Capital Budget
Maranteng Ward 5 Dam street we can’t sleep thugs in streets. Operational Budget
Maranteng Ward 5 Rain destroys houses Operational Budget
Maranteng Ward 5 Small businesses how can the council assist, need land for business, Mlambo took the land that could have been used for other purpose.Operational Budget
Maranteng Ward 5 In 2015 I applied for land as lesedi brick making Operational Budget
Maranteng Ward 5 Houses of old people, and breaking houses, our houses have been taken to Griekwastad Not for this Budget
Maranteng Ward 5 Waiting for house for ten years Not for this Budget
Maranteng Ward 5 5 years back we were promised library, unsafe road crossing, no machine working in library Not for this Budget
Maranteng Ward 5 Water on the roads Operational Budget
Maranteng Ward 5 Rubbish removal truck don’t do roads, rubbish bins needed Operational Budget
Maranteng Ward 5 Old problem since old council, no skip bin at the back of the DAM in maranteng. Operational Budget
Maranteng Ward 5 73yrs in Maranteng, House leaks, only young people benefit from houses build. Need land for churches Operational Budget
Maranteng Ward 5 Poor quality hoses are build Operational Budget
Maranteng Ward 5 Reservoir is open we need security Capital Budget
Maranteng Ward 5 Problem with the clinic, we go to clinic as early as 5h00 but the nurses are not committed. Not for this Budget
Maranteng Ward 5 Overlooked in streets, kids play with water Operational Budget
Maranteng Ward 5 Transport for school kids to Boichoko Not for this Budget
Maranteng Ward 5 Toilets Capital Budget
Maranteng Ward 5 Sports fields, parks needed, we got alcohol problems Capital Budget
Maranteng Ward 5 Land audit give us timeline, Mlambo got land municipality vehicles used. Operational Budget
Maranteng Ward 5 Timeline, street names for maranteng Operational Budget
Maremane Toilets as promised by previous council Capital Budget
Maremane Clinic (mobile clinic is supposed to visit Maremane every Thursday but they are not coming regularly. Not for this Budget
Maremane Water distribution remains problem. Operational Budget
Maremane Famsa, Sanca must come and drug and alcohol awareness campaign Operational Budget
Maremane Dust from the truck that carries production from the mines, Transnet road. Operational Budget
12
Ward Issues Raised Operational or Capital
Maremane Primary school for Maremane Not for this Budget
Maremane Housing for maremane Not for this Budget
Maremane Post where advertised at department of health, interview postponed and there was no further engagement with applicants.Not for this Budget
Maremane RDP houses for Maremane in the coming financial year Not for this Budget
Maremane Council should come with something concrete for the community; we keep on repeating the same things every year. Operational Budget
Maremane Roads, pavement for access road into Maremane with speed bumps. Operational Budget
Maremane Mass lights for community to reduce crime Capital Budget
Maremane Water is pumped and don’t reach the whole community, the size of the pipes that supply water from the dam is too small.Operational Budget
Maremane Clinic for maremane Not for this Budget
Maremane Ambulance is responding too slow Not for this Budget
Maremane Police responds after hours, if incidents are reported. Not for this Budget
Maremane Electricity for houses that didn’t get during the first phase. Capital Budget
Maremane Leadership had not presented themselves what is their vision regarding Maremane Operational Budget
Maremane Roads Capital Budget
Maremane Contractors vehicles passing through the community are driving recklessly Operational Budget
Maremane Transport for school children is a problem. Not for this Budget
Maremane Toilets Capital Budget
Maremane Roads Capital Budget
Maremane Primary school Not for this Budget
Maremane Need to know the expenditure of the water project at maremane , how much spent and how much is left. Operational Budget
Maremane Prioritise maremane in the coming 5 years. Operational Budget
Maremane We need a board that will direct people to maremane (sign board) Capital Budget
Maremane Speed limits boards in our community Operational Budget
Maremane Primary school for Maremane Not for this Budget
Maremane Housing for maremane Not for this Budget
Maremane The community of maremane has a hall, crèche but it doesn’t have electricity. Capital Budget
Maremane The issue of the graveyard, need to be fenced. Capital Budget
Newtown Need houses to be built in Newtown Not for this Budget
Newtown Employ also people from Newtown Operational Budget
Newtown Community need speed bumps in Arend street Operational Budget
Newtown Mossie street speed bumps Operational Budget
Newtown Budgie street needs paving and storm water channels Operational Budget
Newtown End street need completion and storm water provision is not made Operational Budget
Newtown High mass lights are not working next to Biffie and Mossie street Operational Budget
Newtown Disaster management needs to be prioritized Operational Budget
Newtown Mud houses needs to rebuild( Rooivalkie str and aunt Sophie Phete house) Not for this Budget
Newtown Are the security guards registered with SIRA Operational Budget
Newtown No lights in Maranteng and its unsafe Capital Budget
Newtown Condition of the roads are bad Operational Budget
Newtown Need for a high school in Newtown Not for this Budget
Newtown Demand for a library if there are land available Not for this Budget
Newtown Gym for young people in Newtown Not for this Budget
Newtown Gross substance abuse by young people Operational Budget
Newtown Government support for TADS Operational Budget
Newtown SAPS involvement in drugs Not for this Budget
Newtown Tsantsabane Development Forum can play a role in the fight against drugs Operational Budget
Newtown Youth development Operational Budget
Newtown Rocks that are been left by contractors Operational Budget
Newtown Robots are unsafe due to the drugs that are been sold there Operational Budget
Newtown Need Red soil at the back of his house Operational Budget
Newtown Customer service condition at the hospital is bad Not for this Budget
Newtown Condition of the roads are bad Operational Budget
Postdene Ward 1 Light is off in front of carestic Operational Budget
Postdene Ward 3 Light mass light is always off Operational Budget
Postdene Ward 3 Storm water of Plein street is a problem Capital Budget
Postdene Ward 3 Council need to ensure proper roads for Pensfontein Capital Budget
Postdene Ward 3 open at the Shanties Operational Budget
Postdene Ward 3 Skool street need upgrade Internal Operational Budget
Postdene Ward 3 Toilets of shanties needs to be completed Operational Budget
Postdene Ward 3 No roads in shanties Capital Budget
Postdene Ward 3 Bursaries for students Operational Budget
Postdene Ward 3 Phase 2 electricity Internal Capital Budget
Postdene Ward 3 Newtown weg street in a bad condition Operational Budget
Postdene Ward 3 COGHSTA RDP Houses for Postdene are needed Not for this Budget
13
Ward Issues Raised Operational or Capital
Postdene Ward 3 Refuse removal must be done more often at these skips Operational Budget
Postdene Ward 3 Refuse behind the graveyard is a problem Operational Budget
Postdene Ward 3 Water in 5th Ave is a problem Operational Budget
Postdene Ward 3 Services at the clinic are pathetic Not for this Budget
Postdene Ward 3 SAPS respond time is very long Not for this Budget
Postdene Ward 3 Drugs at schools something must be done Operational Budget
Postdene Ward 3 Unemployment is a problem must get attention Operational Budget
Postdene Ward 3 Land for business Operational Budget
Postdene Ward 3 High mass lights are not working Operational Budget
Postdene Ward 3 MM No clarity about phase 2 at the informal settlements Operational Budget
Postdene Ward 3 Shortage of staff at the clinic and hospital in town Not for this Budget
Boichoko (Ward 7) Directors don’t attend meetings in our ward. Operational Budget
Boichoko (Ward 7) Is there any budget for our ward, what are the plans of the municipality for our ward , especially the shanties at mountain view.Operational Budget
Boichoko (Ward 7) Water is flooding the houses in Motlaetshaba street when it is raining, municipality must make a business plan for a drainage system.Operational Budget
Boichoko (Ward 7) Water in fincham str and Motlaetshaba is a concern. Operational Budget
Boichoko (Ward 7) The gravel that the municipality put in our street is full of rocks .now is becoming a problem when cars pass in front of my yard.Operational Budget
Boichoko (Ward 7) Water that goes to our subsidies houses, the drainage system should be build. Operational Budget
Boichoko (Ward 7) Our furniture is damaged because of constant water that goes in our house when it is raining.in motlaetshabaOperational Budget
Boichoko (Ward 7) Before election we were promised electricity at mountain view. Operational Budget
Boichoko (Ward 7) We were promised at mountain view that the surveyor will come Operational Budget
Boichoko (Ward 7) How is the municipality saying to us we must save water, while the pipes are damaged and licking all over the place.Operational Budget
Boichoko (Ward 7) In job creation project the Operational Budget
Boichoko (Ward 7) Issue of electricity for the shanties at mountain view Capital Budget
Boichoko (Ward 7) End street is not complete , no stops no storm water channels, what is the plan of the Municipality Operational Budget
Boichoko (Ward 7) A lot of IDP meetings are held but no action, we are tired of empty promises. Operational Budget
Boichoko (Ward 7) Motlaetshaba street is a problem when it rains. Operational Budget
Boichoko (Ward 7) The main road at ZCC is not in good conditions, please consider us during this term Operational Budget
Boichoko (Ward 7) Shanties people where promised that their sides will be restructured. Operational Budget
Boichoko (Ward 7) The light in Motlaetshaba street is not lighting for the past 4 years since install. Operational Budget
Boichoko (Ward 7) We need a hall in our ward Not for this Budget
Boichoko (Ward 7) Mongake street is always in water when it rains Operational Budget
Boichoko (Ward 7) Cut the wild grass that is in our community Operational Budget
Boichoko (Ward 7) We must stop holding IDP meeting for compliance and formality, matters must be taken seriously. Operational Budget
Boichoko (Ward 7) Hall for ward 7 Not for this Budget
Boichoko (Ward 7) Soccer field in front of Makazol house must be turned into close ground Capital Budget
Boichoko (Ward 7) When we have projects at the municipality let the municipality employ qualified contractors, we must learn with what happened at END street.Operational Budget
Boichoko (Ward 7) SLP … the mines should be approached to fund our projects Operational Budget
Boichoko (Ward 7) We should consider having an IDP meeting at mountain view as this area of ward 7 is big, currently in this meeting there is no people from mountain view.Operational Budget
Boichoko (Ward 7) 212 houses are not finished, where is the funds of the houses as some people had built their own houses Not for this Budget
Boichoko (Ward 7) Toilets for the shanties Capital Budget
Boichoko (Ward 7) Former detective offices should be turned into something for the community. Operational Budget
Boichoko (Ward 7) Some churches are having a huge parking lot, while people need a place to stay. Operational Budget
Boichoko (Ward 7) Part of the 212housing project are not built, we need feedback. Not for this Budget
Boichoko (Ward 7) Neu street there is water problem when its raining Operational Budget
Boichoko (Ward 7) The outstanding houses of 212 Not for this Budget
Boichoko (Ward 7) We need street names we need boards that will show us the streets. Operational Budget
Boichoko (Ward 7) Till how far is the land of the shanties of mountain view stretching, because I need land to create jobs Operational Budget
Boichoko (Ward 7) Water in our houses when it rain, we don’t enjoy rain anymore. Operational Budget
Boichoko (Ward 7) There is a snake at the soccer field , its dangerous for our people Operational Budget
Boichoko (Ward 7) Jacob Rades street need paving, the roads are problematic Capital Budget
Boichoko (Ward 7) We have not received our title deeds, but the municipality takes water reading to bill us Operational Budget
Boichoko (Ward 7) The municipality should focus on job creation projects Operational Budget
Boichoko (Ward 7) TLD we take our CV to them we don’t get employed Operational Budget
Boichoko (Ward 7) When we call police, or ambulance, we need street names and board, house numbers Not for this Budget
Boichoko (Ward 7) As Tsantsabane is surrounded by mines, our children are not employed. Operational Budget
Boichoko (Ward 7) What does the mines do to improve the situation and the life of our people. Operational Budget
Boichoko (Ward 7) Budget report and expenditure from 2011-2016. Operational Budget
Boichoko (Ward 7) Recognition of CPA committee by the municipality Operational Budget
Boichoko (Ward 7) Launching of projects before they are implemented.(e.g. Water and Toilets project) Operational Budget
Boichoko (Ward 7) Community consultation before implementation of projects. Operational Budget
Boichoko (Ward 7) Problems experienced in water and toilets project-No one is responsible Operational Budget
Boichoko (Ward 7) Park and Road from Postmasburg to Skeyfontein. Operational Budget
Boichoko (Ward 7) Water engine used before must be brought back to the community, to be used when there is no water. Operational Budget
Boichoko (Ward 7) Low bridges for skeyfontein ‘s road from Postmasburg Capital Budget
14
Ward Issues Raised Operational or Capital
Boichoko (Ward 7) Paving incomplete Capital Budget
Boichoko (Ward 7) Supplying water dam to be build. Not for this Budget
Boichoko (Ward 7) Empty promises from municipality regarding services. Operational Budget
Boichoko (Ward 7) Drainage of toilets Capital Budget
Boichoko (Ward 7) Low bridge still pending since 2011 Capital Budget
Boichoko (Ward 7) Service provider using community soil to build the toilets, He must buy his own soil. Operational Budget
Boichoko (Ward 7) Mobile Clinic not visible for the past 9months. Not for this Budget
Boichoko (Ward 7) Paving road destroyed by Toilets and water contractor to be fixed. Operational Budget
Boichoko (Ward 7) Street roads to be build. Capital Budget
Boichoko (Ward 7) Negotiation with Mr Gouws(farm owner) for application of old road to be used as it is shorter than the one presently used.Operational Budget
Boichoko (Ward 7) Monitoring of Projects from the municipality. Operational Budget
Boichoko (Ward 7) Fencing project, stipend per kilometre. Operational Budget
Boichoko (Ward 7) Sentec-Network for cell phones Not for this Budget
Boichoko (Ward 7) Types of toilets build by COGHSTA-not happy about them Operational Budget
Boichoko (Ward 7) Fencing for cemetery Capital Budget
Boichoko (Ward 7) Roads and clinic Capital Budget
Boichoko (Ward 7) toilets Capital Budget
Boichoko (Ward 7) Water Capital Budget
Boichoko (Ward 7) Houses Not for this Budget
Boichoko (Ward 7) Roads from Mashaleng to Madichabe. Capital Budget
Boichoko (Ward 7) Someone to be responsible for water within the community Operational Budget
White city (ward 6) You cant drive on our street when it had rained. Operational Budget
White city (ward 6) Sports facilities for white city Capital Budget
White city (ward 6) Under age children becomes pregnant due to lack of facilities. Operational Budget
White city (ward 6) Our school in Newtown is dirty, no playground for our children. Not for this Budget
White city (ward 6) Big rocks at the school left by contractor during the project of building the school. Not for this Budget
White city (ward 6) Where is the library that was promised the people of white city Not for this Budget
White city (ward 6) End street project that is not finished, the road is incomplete. Operational Budget
White city (ward 6) Kgololo str is not in good condition. Operational Budget
White city (ward 6) Our graveyard is dirty in boichoko Operational Budget
White city (ward 6) At the shanties we need road , ambulance and the police are struggling Not for this Budget
White city (ward 6) Electricity for shanties Capital Budget
White city (ward 6) There is no road at the shanties, big grass, our children remain sick Capital Budget
White city (ward 6) Toilets project is not finished Not for this Budget
White city (ward 6) There are no roads, councillor promised roads Capital Budget
White city (ward 6) Sewerage dam that is next to the kolomela houses is making us sick, why is the municipality not closing it Capital Budget
White city (ward 6) Cwp workers we worked but don’t get paid Operational Budget
White city (ward 6) RDP is incomplete Operational Budget
White city (ward 6) Water on the street when it had rained on END str Operational Budget
White city (ward 6) A lot of holes we digged with intention to build toilets, and those toilets are not build, those holes are left unattended.Capital Budget
White city (ward 6) Erol van wyk of kolomela skills training centre is not working fairly with our local people, when we pass the test we don’t get the opportunity to be employed. He rather employ people from outsideOperational Budget
White city (ward 6) Our RDP house is licking and cracking our streets lights are not working. Operational Budget
White city (ward 6) I bought soil for R600 from municipality, but I still need soil for my yard, but I don’t have money now. Operational Budget
White city (ward 6) Water that comes from other streets comes to my yard, and dirt is not removed in front of my yard. Operational Budget
White city (ward 6) A drain that is constantly stinking in masakhane str Operational Budget
White city (ward 6) Paving is flooding with water Operational Budget
White city (ward 6) Water floods in my yard Operational Budget
White city (ward 6) CWP I was the supervisor people want their money from me Operational Budget
White city (ward 6) School fees at NEWTOWN primary is very expensive, I don’t work Not for this Budget
White city (ward 6) When it had rained we have water problems Operational Budget
White city (ward 6) We need job creation projects, we need employment Operational Budget
White city (ward 6) Roads are in bad condition, street lights are not working. Operational Budget
White city (ward 6) Sports ground for community. Capital Budget
White city (ward 6) Light for our area, Capital Budget
White city (ward 6) There was no consultation before the process of building toilets, we want flushing toilets. Capital Budget
White city (ward 6) The toilets we got is already full Capital Budget
White city (ward 6) No one is monitoring the projects of Municipality Operational Budget
White city (ward 6) Drugs are problem in our area. Operational Budget
White city (ward 6) End street when will it finish Operational Budget
White city (ward 6) Community hall for white city Not for this Budget
White city (ward 6) We need tar roads not pavement for white city Operational Budget
White city (ward 6) Title deeds are not relating with the people who are staying in the houses, people have to vacate the house after staying in it for 10 yrs.Operational Budget
White city (ward 6) Water in our yard I cant get out of my house when it had rained Operational Budget
Town (Ward 7) Strate / Paaie Opgradering ( Teer Sowel As Grondstrate) Capital Budget
15
Ward Issues Raised Operational or Capital
Town (Ward 7) Sypaadjieopgradering voor Besighede Capital Budget
Town (Ward 7) Purchase of Road Scraper Capital Budget
Town (Ward 7) Straatligte ook langs nasionale paaie wat dorp omring Capital Budget
Town (Ward 7) Equipment to monitor street lights Capital Budget
Town (Ward 7) Cherriepicker Capital Budget
Town (Ward 7) Pump Stations Capital Budget
Town (Ward 7) Security at pump Stations Operational Budget
Town (Ward 7) Swimming bath operations Operational Budget
Town (Ward 7) Water pipe network in CBD Capital Budget
Town (Ward 7) Presure valves in water network Capital Budget
Town (Ward 7) Name bords Capital Budget
Town (Ward 7) Appoint better machanics for workshop Operational Budget
Town (Ward 7) Appoint qualified Electricians for the town Operational Budget
Kanonbult Investigate the high electricity tariffs with VETA Operational Budget
Kanonbult Cleaning of empty plots Operational Budget
Kanonbult Selective employment at the municipality Operational Budget
Kanonbult Maintenance of roads and streets Operational Budget
Kanonbult Illegal dumping remains a challenge Operational Budget
Kanonbult Community need stands / erven Capital Budget
Kanonbult Park next to Langebaan not user friendly Operational Budget
Kanonbult Water meters are concealed no reading taken Operational Budget
Kanonbult No consultation with prepaid electricity Operational Budget
Kanonbult Street lights out of order Operational Budget
Kanonbult Overtime of employees Operational Budget
Kanonbult Bursaries for communities Operational Budget
Postdene Ward 1 Light is off in front of carestic Operational Budget
Postdene Ward 1 Speed bumps in front of dalia weg Operational Budget
Postdene Ward 1 My mother’s account is extremely high Operational Budget
Postdene Ward 1 Sonneblom street lights is off for many years Operational Budget
Postdene Ward 1 Lights are off, in most of postdene Operational Budget
Postdene Ward 1 Rubbish in front of my house Operational Budget
Postdene Ward 1 Leaking meter in my yard, was fixed and still leaking Operational Budget
Postdene Ward 1 Getting water account but the people who counts don’t know where the meter is. Operational Budget
Postdene Ward 1 People are not attending idp meeting because they are not happy. Operational Budget
Postdene Ward 1 We need a PA system to run meeting Operational Budget
Postdene Ward 1 Lights are not yet on, but there was a promised. Operational Budget
Postdene Ward 1 Implement by laws for community members who throw rubbish everywhere Operational Budget
Postdene Ward 1 Drain pipe are licking Operational Budget
Postdene Ward 1 We need housing and pavement Capital Budget
Postdene Ward 1 Noord str is dark Operational Budget
Postdene Ward 1 We need speed bumps as people are speeding Operational Budget
Postdene Ward 1 Streets lights are off Operational Budget
Postdene Ward 1 I am a pensioner and my water account is very high and i am asking for help to transfer the house in my name.Operational Budget
Postdene Ward 1 Adonis str 21 problem with people who throw dirt and all rubbish at the back of my yard. Operational Budget
Postdene Ward 1 Water meter is underground Operational Budget
Postdene Ward 1 Light in sonneblom street is off for the past 10 years. Operational Budget
Postdene Ward 1 Help us with street lights Capital Budget
Postdene Ward 1 We need help withchildren smoke dagga at the back of assmandia school Operational Budget
Postdene Ward 1 We need pavement, dust is not good for our health Operational Budget
Postdene Ward 1 Help us with clinic services that is so poor Not for this Budget
Postdene Ward 1 Lights in viooltjie and is unsafe for our people Operational Budget
Postdene Ward 1 I complain for the past 5 years about my water meter that is not counted Operational Budget
Postdene Ward 1 Municipal workers are at shebeens during working time Operational Budget
Postdene Ward 1 Poor service at the clinic Not for this Budget
Postdene Ward 1 What happen to the 200 houses promised, what happen to the list Operational Budget
Postdene Ward 1 When is asbestos roofs going to be removed Capital Budget
Postdene Ward 1 Cemetery must be cleaned Operational Budget
Postdene Ward 1 Unemployment is high, help us to make a project of fencing Operational Budget
Boichoko (Ward 4) You cant drive on our street when it had rained. Operational Budget
16
Boichoko (Ward 4) Sports facilities for white city Capital Budget
Boichoko (Ward 4) Under age children becomes pregnant due to lack of facilities. Health
Boichoko (Ward 4) Our school in Newtown is dirty, no playground for our children. Education
Boichoko (Ward 4) Big rocks at the school left by contractor during the project of building the school. Operational Budget
Boichoko (Ward 4) Where is the library that was promised the people of white city Operational Budget
Boichoko (Ward 4) End street project that is not finished, the road is incomplete. Capital Budget
Boichoko (Ward 4) Kgololo str is not in good condition. Capital Budget
Boichoko (Ward 4) Our graveyard is dirty in boichoko Operational Budget
Boichoko (Ward 4) At the shanties we need road , ambulance and the police are struggling Capital Budget
Boichoko (Ward 4) Electricity for shanties Capital Budget
Boichoko (Ward 4) There is no road at the shanties, big grass, our children remain sick Capital Budget
Boichoko (Ward 4) Toilets project is not finished Capital Budget
Boichoko (Ward 4) There are no roads, councilor promised roads Capital Budget
Boichoko (Ward 4) Sewerage dam that is next to the kolomela houses is making us sick, why is the municipality not closing it Operational Budget
Boichoko (Ward 4) Cwp workers we worked but don’t get paid Public works
Boichoko (Ward 4) RDP is incomplete Capital Budget
Boichoko (Ward 4) Water on the street when it had rained on END str Capital Budget
Boichoko (Ward 4) A lot of holes we digged with intention to build toilets, and those toilets are not build, those holes are left unattended.Capital Budget
Boichoko (Ward 4) No fair treatment of employment Operational Budget
Boichoko (Ward 4) Our RDP house is licking and crackingour streets lights are not working. Capital Budget
Boichoko (Ward 4) I bought soil for R600 from municipality, but I still need soil for my yard, but I don’t have money now. Operational Budget
Boichoko (Ward 4) Water that comes from other streets comes to my yard, and dirt is not removed in front of my yard. Operational Budget
Boichoko (Ward 4) A drain that is constantly stinking in masakhane str Operational Budget
Skiefontein - Budget report and expenditure from 2011-2016. Operational Budget
Skiefontein - recognition of cpa committee by the municipality. Operational Budget
Skiefontein - launching of projects before they are implemented.(e.g water and toilets project) Operational Budget
Skiefontein -Community consultation before implementation of projects. Operational Budget
Skiefontein -problems experienced in water and toilets project-no one is responsible Operational Budget
Skiefontein -Park and road from postmasburg to skeyfontein. Capital Budget
Skiefontein -Water engine used before must be brought back to the community, to be used when there is no water. Operational Budget
Skiefontein Low bridges for skeyfontein ‘s road from postmasburg Capital Budget
Skiefontein -Paving incomplete Capital Budget
Skiefontein -supplying water dam to be build. Operational Budget
Skiefontein -Empty promises from municipality regarding services. Operational Budget
Skiefontein -drainage of toilets Operational Budget
Skiefontein -Low bridge still pending since 2011 Capital Budget
Skiefontein -Service provider using community soil to build the toilets, he must buy his own soil. Operational Budget
Skiefontein -Mobile clinic not visible for the past 9months. Health
Skiefontein -paving road destroyed by toilets and water contractor to be fixed. Capital Budget
Skiefontein -street roads to be build. Capital Budget
Skiefontein -Negotiation with mr gous(farm owner) for application of old road to be used as it is shorter than the one presently used.Operational Budget
Skiefontein -Monitoring of projects from the municipality. Operational Budget
Skiefontein -Fencing project, stipend per kilometer. Operational Budget
Skiefontein -sentec-network for cellphones Capital Budget
Skiefontein -Types of toilets build by coghsta-not happy about them Capital Budget
Skiefontein -Fencing for cemetery Capital Budget
Skiefontein -roads and clinic Health
Skiefontein -toilets Capital Budget
Skiefontein -water Capital Budget
Skiefontein -houses Capital Budget
Skiefontein -Roads from mashaleng to madichabe. Capital Budget
Skiefontein -someone to be responsible for water within the community Operational Budget
Skiefontein -Thanked for electricity and water in maseutlwadi Operational Budget
Skiefontein -Thanked for the presence of council Operational Budget
17
Tsantsabane Council Identified Priorities for 2020/21
Priority Item Ward Projects
1. Human Settlement
Ward 1 1. Removal of Asbestos roofing in Postdene
2. Beneficiary registration for mix development in Greenfield
and Carnation
3. Beneficiary registration – Part of Town(West End)
Ward 2 1. Beneficiary registration for muddy houses
Ward 3
1. Beneficiary registration – Postdene
2. Beneficiary registration – Groenwater
3. Township Establishment – Jehn Haven
Ward 4 1. Hopeville need services
Ward 5 1. Beneficiary registration – Part of Town(Trinity)
2. Township establishment / Beneficiary
registration/Infields/Business plan for houses -
Marantheng
Ward 6 1. Rezoning of industrial portion to residential
2. Internal services, Transnet 120
3. Township establishment
Ward 7 1. Beneficiary registration- Part of Town (Civic Centre)
2. Construction of 120 houses (Coghsta)
2.Roads and Storm
Water
Ward 1 1. Angelier Street in Ward 1
2. Butterfly and Brown Street (Carnation & Greenfields)
Ward 2 1. Kraanvoel and Hoep Hoep Street
Ward 3 1. 5th Avenue
2. Nominate Street
Ward 7 1. Mqomo street / Mbombo street
Ward 5 1. Behind workshop Street
2. Water and De Bruyn Street
Ward 6 1. Ratanang Street in White City
2. Main access road
3.Water
Ward 1 1. Sort the water problem out in Postdene
Ward 2 1. Construction of Reservoir
Ward 3 1. Sort the water problem out in Postdene
4.Libraries
Ward 4 1. Security at Library
Ward 1;5;7 1. Security upgrade of E-Learning in Town Library
Ward 6 1.Need Library in White City
5.Community Halls Ward 1 1. Upgrade of Community Hall
6.Arts and Culture Ward 4 1. Fixing of Stadium
7.Parks
Ward 2 1. Ablution facilities
Ward 3 1. Upgrade of all sports codes(Postdene)
2. Upgrade of soccer field – Jehn Haven
18
Ward 4 1. Swimming pool; Sports
Ward 7 1. Upgrade of soccer field
CHAPTER 2: MUNICIPAL PROFILE
This chapter briefly describes the spatial, social, environmental and economic elements that shaped the
pattern of development in the municipal area. The purpose of the profiling is threefold: (a) to serve as
reference framework for integrated development planning, (b) to better understand and report on the
urban and rural context, and (c) to track, measure and consider change over time. The work done
includes a situational analysis which, together with the annual report, informed our understanding of the
environment within which government operates.
2.1 Locating the municipality
Tsantsabane Local Municipality is situated in the ZFM District Municipality and covers geographic area of
5 887km2 (Surveyor General, 2008). Tsantsabane Local Municipality is bordered by Siyancuma LM,
//Khara Hais LM, !Kheis LM, Gamagara LM and Kgatelopele LM.
(Source: NCPSDF, 2012)
19
The municipal area falls in the Gamagara Corridor. The NCPSDF (2012: 68) defines the Gamagara
Corridor as “comprises the mining belt of the John Taolo Gaetsewe and Siyanda (ZF Mgcawu) districts
and runs from Lime Acres and Danielskuil to Hotazel in the north. The corridor focuses on the mining of
iron and manganese”.
The municipality comprises of seven (7) wards and it is also a host to the Lohahla South Africa Military
Training Base. The municipal area is divided into the following wards:
Ward 1 Part of Postdene and Carnation. – Cllr E Poto
Ward 2 Newtown – Cllr M Daniels
Ward 3 Groenwater, Jenn Haven, part of Postdene and Kolomela houses – Cllr E Phete
Ward 4 Boichoko – Cllr D Modise
Ward 5 Skeifontein, Soetfontein, Strathmore, Part of Boichoko and Postmasburg Town – Cllr T Saulus
Ward 6 White City, Glossom, Maremane, Beeshoek, Stasie - Cllr M Mashila
Ward 7 Maranteng, Kanonbult – Cllr I Tshabane
2.2. Spatial Analysis
• Patterns and Trends :_Tsantsabane Local Municipality Spatial Development Framework (SDF)
and Land Use Management Scheme (LUMS) was completed and adopted by Council in 2015.
The SDF also contains basic principles pertaining to long term spatial development as well as
possible strategies and principles on how to achieve this desired spatial form.
• The municipal spatial vision is “to create a place of opportunities, in cooperation with the
private sector, where the basic needs of all residents are met in a safe, healthy and
sustainable environment”.
The following key spatial issues were identified and evaluated to determine their impact:
• Access to land
• Land development
• Spatial integration
• Sustainable land management
• Proper distribution network
• Land reform and restitution
• Land conservation
Structuring elements
• The major routes running through Postmasburg include the R385 from Kimberley that runs
through Beeshoek, the R309 and the R325 to Kathu. Postmasburg is situated 200 kilometers from
Kimberley and 240 kilometers to Upington.
Key municipal settlement areas can be categorized as follows:
• Main town: Postmasburg
• Rural settlements: Jenn-Haven, Maremane. Groenwater and Skeyfontein
20
• Established Townships: - Boichoko, Newtown, Whitecity, and Potsdene.
• New Settlements Developments: - Mountainview, Greenfields, Postdene Pahse 1 & 2.
The Municipal SDF (2014) refers to the following spatial restructuring elements:
• Different nodes: CBD node, Sibilo shopping centre business node, Postdene business node,
Boichoko/Newton Business node.
• Primary movement corridors (N14 and Sishen Saldanha Railways)
• Secondary movement corridors (R385 and R325)
• Gamagara mining corridor
• Activity streets
(Source: Tsantsabane SDF 2015 – Municipal
Map)
2.3. Population
Census 2011 the population figures for Tsantsabane Local Municipality is 35 093, this indicates a
population growth 4079 from population size of 31 014 (Census 2001) However incremental community
survey dating The municipality has 9839 households. The attributing factor to this population growth is
21
the increase of people who come to the municipal area in search for better living conditions or jobs in the
mining and solar industrial sectors.
2.2.1 Gender
The male population has increased by 24% while the female population has increased with only 2.7%
since 2001.
The municipality has more males than females and the reason could be derived from the male dominated
employment industry as there are a lot of mines in the area. Out of the whole population 54% are black
male followed by 36% coloured males then 8% white and lastly 1% Indians. For females there are 51%
black Africans followed by 40% coloured females then lastly 9% of whites in the municipal area.
2.2.2. Age
The age pyramid indicates that the population of Tsantsabane is predominantly young people. There is a
small percentage of people older than 60 years. The age pyramid further indicates that approximately
31% of the population is under 14 years and approximately 33% is between 15 and 34 years.
Population by gender
14737
18363
16277 16730
0
5000
10000
15000
20000
Popu
lati
on
Male 14737 18363
Female 16277 16730
2001 2011
Male % Male Female %Females Total
Black African 9939 54 8589 46 18528 Colored 6564 50 6620 50 13184
Indian or Asian 185 82 39 18 224
White 1506 51 1427 49 2933
Other 169 76 54 24 224
Total 18363 52 16730 48 35093
22
2.3. Socio-economic analysis
2.3.1. Education levels
It is important to understand the level of education of people in a particular area, as one is then able to
have a clear understanding on how many have the potential to enter the labour market. From a statistical
analysis it is clear that there has been an increase of people obtaining Matric since 2001. There has also
been an increase in the number of people with higher education.
The statistics indicate that although a high number of students enrolling for primary school a very low
number of students complete grade 12. This has resulted in a very low probability for employment. Only
5% of those who enrolled for grade 1 make it into tertiary. Less than 15% of the population has a tertiary
qualification or have completed Grade 12. It must, however, be mentioned that the education level is
affected negatively by the urbanization process, in the past since it mostly involves matriculates and those
with a better qualification, due to the local lack of job opportunities. This can also be attributed to the fact
that the nearest University of Technology (Central University of Technology, in Bloemfontein) is almost
400km away and the Sol Plaatjie University has recently started a limited offering of some courses.
Males seems to be doing much better when it comes to education levels, as more men have some
secondary education, grade 12 and higher education than their female counterparts.
0 - 4
10 - 14
20 - 24
30 - 34
40 - 44
50 - 54
60 - 64
70 - 74
80 - 84
Age pyramid
Female
Male
23
2.3.2. Labour Force
According to the STATSA unemployment figure has drastically reduced from 4 466 in 2001 to 3 795 in
2011 this shows a decrease of 15%. Employment has increased by 69% in 2011, this clearly indicates
that there are more people working in 2011 than in 2001.
The Municipality is not developing its IDP in isolation. A range of national and provincial policy documents
informed the IDP created an important context for the municipality’s pans and strategies.
Achieving a developmental state is not a responsibility of national government alone – let alone local
municipalities. In the spirit of the 2003 Agreement at the National Growth and Development Summit,
stronger social partnerships between government, organized labour, organized business and the
0
500
1000
1500
2000
2500
3000
3500
4000
4500
No schooling Someprimary
Completedprimary
Somesecondary
Grade12/Std 10
Higher
Education levels by gender
Male
Female
0
1000
2000
3000
4000
5000
6000
7000
8000
Male Female
Employment status
Employed
Unemployed
24
community constituency are needed to address the investment, employment and poverty challenges that
are confronting our faces.
There is more employed people in 2011 than in 2001, however there is a very high level of economically
inactive members in 2011 than it was in 2001. The high number of economically inactive could indicate a
high level of dependency on those who are employed.
2.2.3. Monthly income
Almost half of the population has no income, while more than 10% of the population earns less than
R1400, 00pm. Poverty is still rive in the municipality.
0
2000
4000
6000
8000
10000
12000
Employed Unemployed Discouragedwork seekers
Other noteconomically
active
Employment status
2001
2011
25
2.2.4. Social infrastructure
Settlements that perform well are settlements that are convenient and give people access to facilities
(CSIR, Human Settlement Planning and Design, 2000). Social amenities contribute to the human
development of people in a particular area. Access to social amenities may contribute to a person’s
development but their absence can also pose various challenges.
2.2.5. Schools
The residents have access to educational facilities such as primary schools and high schools, however
there is a need for more Primary Schools, as per the thresholds standards set by the CSIR Human
Settlement Planning and Design.
Challenges confronting schools include:
• There is an urgent need for additional school facilities in Newtown (Postmasburg) and
Groenwater / Skeyfontein.
• Lack of a Setswana medium school/s.
• Lack of specialized schools focusing on specialized traits i.e. Technical or Agricultural
• Lack of proper water and sanitation services at schools
• Not enough classrooms and high learners and teacher ratio
• There is a need for an additional technical high school that will respond/address for the needs of
the mining sector.
2.4.Economic analysis
2.4.1. Local economic development
• Local government is mandated to create the necessary conditions for economic growth and job
creation. The municipality has a LED Strategy, which is due for review. The municipal area place
an important role in the economy of the region/province, as it is located in the Gamagara
Corridor.
2.4.2. Sectors
• The Draft SDF cited Provincial Treasury (2014) indicates that “during 2012 the primary sector
contributed 76% of all the sectors’ contribution to the GDP of Tsantsabane LM. Mining is the
single biggest contributor of all industries to the GDP. Mining contributed 74%, namely R3.9
billion, and tertiary sector contributed 4% and 20% respectively”.
2.4.3. Macro-Economic Environment
• All businesses operate in an environment that is changing on a daily basis. When referring to the
environment, it is not only one global external environment that is referred to. Conducting
business includes analysing the environment to look for gaps in the market and opportunities to
explore (see figure 1). The first environment of importance is the macro environment. When
discussing the macro environment, it can be referred to as PESTLE (Wiid, 2014, p. 19). The
abbreviation PESTLE stands for political, economy, social, technological, legal and natural
environment. The macro environment is difficult to define because of the fact that there are many
dynamic factors to take into consideration in order to define it. External pressures such as
plummeting commodity prices, of sometimes well over 50%, have had a severe effect on various
business industries (De Hoop, 2016). Often the government assessment ignores the long-term
capacity building and development and only focuses on the short-term profits (Tonts, et al., 2013,
p. 367).
• Boom and bust cycles are anonymous with the mining industry. Host communities should
understand that in boom time’s jobs, investment in infrastructure and the infusion of cash will
regress into bust times of population decline, unemployment and losses in income (Vadgama, et
26
al., 2008). New small mining towns benefit substantially in terms of local economic growth as well
as poverty alleviation (Owusu-Koranteng, 2008). But as noted by the World Bank (2002, p. 14),
this does not happen automatically and the community should be aware to reduce the
dependency on the natural resource very early in the development of the mining sector in the
region.
• Blakely (2001) highlighted that economists differentiate between economic growth and economic
development. Economic growth is a quantitative measure of the changes in the size of the local
economy like population, employment, production of goods and services, housing stock. On a
national level this is also measured as gross domestic product (GDP). On the other hand,
economic development is rather a qualitative measure of the quality of life in a locality.
• This affects the poverty, level of education, and mean family income of an area. Mining may cause
the country’s GDP to rise but this does not necessarily lead to development within the mining
town (Helmuth, 2009, p. 51)
• Furthermore, Rogerson (2012, p. 107) reiterates that economic development is not only about
growth in the economy but also concerned with the diversification of the local economic base to
enable economic sustainability of the area once mining is ceased.
• Keyes (1992) identified two ways of diversification. Vertical diversification where the community
still remains vulnerable to the mineral economic cycle and a single economic base involving
additional activities related to the mining sector (for example, processing, transportation, mining
other communities) (Helmuth, 2009; Bec, et al., 2015). On the other hand, horizontal
diversification creates preferred alternatives in other economic sectors like manufacturing or
transportation. It is important for a mining town to diversify at the start of the mining operations to
prevent economic collapse and single sector dependence. A diversified economy is to the benefit
of the mining investors, the local government as well as the business community in the
surrounding region. As in many other parts of the world, several South African small towns are
dominated by “economically undiversified, single-resource small towns” (Pelser, et al., 2012, p.
45). Looking at the mining industry in South Africa, any fluctuations in their activities can influence
the market and micro environments of its immediate environment, especially towns situated close
to where a mine is being established. In many of these mining communities the responsibility of
economic development has been transferred to the mining company through the social and
labour planning requirements of the Mineral and Petroleum Resources Act No. 28 of 2002
(MPRDA ss.25(2)f)) and the corporate social responsibility of the large mining companies
(Sorensen, 2015; Republic of South Africa (RSA), 2004). This is often referred to as the “company
town syndrome” (Crabb, 2002).
2.5. Market Economy of Tsantsabane
• The macro environment influences the market or industry in which a business is operating. The
market or industry analysis gives a better understanding of the market or players in the industry,
showing who the market leaders are. The influence, positive or negative, can impact local
business conditions because of several factors such as the decrease in expenditure, equipment,
retrenchment, or general working conditions such as overtime which ultimately affects disposable
income of the employees. The opposite can also be a reality, meaning the expansion in the
mining industry can create many business opportunities for entrepreneurs and therefore also
more job opportunities (Bec, et al., 2015) .
Reflections from micro environment of local businesses
• The mining industry can have a great impact (positive and negative) on other industries. A mining
town like Postmasburg, has had a positive business impact from mining the last few years
because of a new mine (Kolomela) starting with construction near the town in the middle of 2008.
27
The older mine, Assmang Beeshoek, has a constant impact on the town because the mine was
established many years ago (1968) and moved all the workers into the town. According to
Carrington and Pereira (2011) the mining industry as a whole does not support the local
businesses. Similar sentiments were expressed by local business people (Local Business
Economic Group, 2014). This is the view from the small black as well as the large white
businesses (Local Business 3, 2015). One interviewee expressed these concerns in the following
words “All the previous open spaces in town are now occupied by foreign nationals. The local
black and white businesses do not have to money to pay the inflated rental prices in town”. This
was often the case in previous studies as well (Bec, et al., 2015). The Mining Charter does not
state targets for regional or local black economic empowerment (BEE) procurement, but Kumba
Kolomela Mine has been committed to create business opportunities for black-owned and
empowered businesses in the Northern Cape and the Tsantsabane area. In 2014 the local
procurement made up 25% (R860 million into the local economy) through combined bidding of
large local businesses as well as Broad Based Black Economic Empowerment (BBBEE) with
training and various means of assistance. Black business owners have mobilized themselves into
forums such as the Emerging Contractors’ Forum (ECF), Tsantsabane Black Business Chamber
(TBBC) and the Tsantsabane Local Business Forum (TLBF) as instruments to formally put
pressure on the mine and make demands for fast-tracking localized BEE procurement. ( Kumba
Iron Ore Limited, 2014).
• Almost 80% of the businesses involved in the survey were in formal structures, whereas almost
17%were in informal structures and only 4% made use of business opportunities without shelter.
There are many newer businesses in Postmasburg because 57% of those businesses interviewed
are less than 5 years old. When looking at the individual new businesses, 53% were involved in
retail and wholesale; 19% in personal services; 16% in transport, 6% in catering and
accommodation and 3% in financial services.
• The management of business risks or opportunities largely depends on the strengths and
weaknesses of the internal or micro environment. The micro or internal environment is of equal
importance to the business as the two other mentioned environments (macro and market or
industry). Knowing the internal environment of the business, is not only a detail understanding of
the strengths and weaknesses inside the business that can contribute to the sustainable
existence, but also how and to what extent to change business activities to adapt to the industry
or macro environmental influences. A business man from Postmasburg bought his current
business (a garage and food / retail store) in 2003 before the opening of the new Kolomela mine
because of the opportunity presented by the running of the mine. All the paperwork with the
petroleum company (the service provider for the garage) took him many years because firstly,
they did not believe that there is a need for another garage in Postmasburg, which resulted in the
garage and shop being ready for business only a few years after the opening of the mine (Local
Business Interview 2, 2015). He is not the only entrepreneur that saw some business
opportunities in a town like Postmasburg after doing an environmental and market analysis,
knowing a new mine is going to be established. During the focus group discussions for the
Environmental Impact Assessment (EIA) for Kolomela Mine in Postmasburg, the educational
group (2014) noted that “we suddenly had three tyre shops, which we never used to have”.
2.5.1. economic opportunities
The table below indicates the various areas of economic investment and development potential for the
municipal area.
28
(Source, Tsantsabane SDF, 2015: 118)
29
2.6. Basic services
2.6.1 Water
The Department of Water Affairs has released its Blue Drop-report, after drinking water quality was tested
in different municipalities. Out of the 76 municipalities only 22 water supplying systems around the
country earned the “Blue Drop” of approval - leaving 54 municipalities where one has to careful when
drinking water directly from the tap. The report said that water supplier systems that were not able to
obtain the Blue Drop status will be placed under close surveillance until they improve.
According to the document, Tsantsabane Local Municipality was also unable to obtain the Blue Water
Drop Status. Indications showed that Tsantsabane scored 85%. In order to qualify one needs to at least
achieve 95%. This issue is noted and the Municipality is in the process of addressing the gap. Currently
the Municipality still needs to comply with certain legislation, i.e. the development of a Water Sector Plan
and certain policies.
With regard to water provision the percentage of households having access to pipe water inside their
dwellings have also increased from 37.1% to 62% (2001 and 2011 period).
The majority of Tsantsabane residents drink water that is from a water scheme. A small percentage
drinks water from borehole. A concern is for those who drink water from dam/pool/stagnant water and
other source as the water might not be safe to drink.
0 1000 2000 3000 4000 5000
Piped (tap) water inside dwelling/institution
Piped (tap) water inside yard
Piped (tap) water on community stand:distance less than 200m from…
Piped (tap) water on community stand:distance between 200m and 500m from…
Piped (tap) water on community stand:distance between 500m and 1000m (1km)…
Piped (tap) water on community stand:distance greater than 1000m (1km) from…
No access to piped (tap) water
Piped water
30
2.6.2 Electricity
There has been a general increase in the number of people having access to electricity, across the
country. 2011 Stats SA indicates that 8211 households use electricity for lighting while 1356 households
use candles.
0 1000 2000 3000 4000 5000 6000 7000 8000
Regional/local water scheme (operated by…
Borehole
Spring
Rain water tank
Dam/pool/stagnant water
River/stream
Water vendor
Water tanker
Other
Source of water
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
Electricity Gas Paraffin Candles Solar Other None
Energy or fuel for lighting
Series1
31
2.6.3. Sanitation
The Community Survey of 2007 further indicates an improvement in sanitation and sewerage provision.
However there are still 552 households that use buckets toilets. The majority of the residents (6563
households) use a flush toilet that is connected to a sewerage system.
Backlogs of services
Wards Water Backlogs Sanitation Backlogs
2001 2008 Planned Remain 2001 2008 Planned Remain
Ward 1 5
2
2 - 6 9 9 -
Ward 2 327
126
126 - 480 734 734 -
Ward 3 89
34
34 - 76 116 116 -
Ward 4 12
5
5 - 92 141 141 -
Ward 5 169
65
400 - 221 338 400 -
Ward 6 32
12
12 - 356 544 544 -
634
244
579 - 1,231 1,882 1,944 -
2.6.4. Refuse removal
The amount of households receiving refuses removal services by the local authority have strangely
decreased to 77.9% in comparison to the 83% in 2001. As a result of this decrease, refuse removal has
been classifies as a priority for proper/sustainable environmental management.
0 1000 2000 3000 4000 5000 6000 7000
None
Flush toilet (connected to sewerage system)
Flush toilet (with septic tank)
Chemical toilet
Pit toilet with ventilation (VIP)
Pit toilet without ventilation
Bucket toilet
Other
Toilet facilities
32
2.6.5. Housing
“Mining in Tsantsabane is the highest contributor to both its economic growth and job creation; the town
has three new mines in the last 2 years. Tsantsabane is located 200km outside of Kimberley. Tsantsabane
has three main traffic routes that provide access to other cities, namely Johannesburg via Kuruman and
the Kalahari and Cape Town via Kimberly. More than 99,86% of the municipality is currently
vacant/undeveloped. Tsantsabane has no traditional or tribal areas and 90% of the population resides in
the urban areas while 10% of the population resides on farms.
2.5.6. Socio-Economic Profile:
Due to the increase in mining activities, the demand for housing has also increased. There was a 2.7%
population growth between 2001–2011. In 2011 over 26% of the population was unemployed and over
30% of the economically active population earned no income. Mining accounts for 55% of the GDP within
the region. There are 9,839 households in Tsantsabane, with an average household size of 3.5 people.
72% of the residents live in formal dwellings. 67% of households use a flush toilet connected to sewerage
and 45% have piped water inside. 57% receive weekly refuse removal. 59.6% of the houses have been
fully paid off”
2.5.7. Housing Strategies:
The objective of the IDP states that all informal settlements must be formalized within five (5) to ten (10)
years. Through Public Private Partnerships between the municipality, Kumba Resources and the Northern
Cape Department of Housing, partnerships have been established to speed up the development of
residential housing project. We can initiate other agreements, MOU`s and SLA`s with other countries or
municipalities to fill the gap of mix housing within the municipal area. According to the SDF the following
Spatial Framework Proposals were made: Future residential extensions of Postdene and Postmasburg.
Future residential extensions of Newtown and Boichoko townships. In-fill planning opportunities should be
exploited as well as densifying large properties within the residential neighborhoods through high density
developments. Future Golf Estate for upper housing market. Possible future residential extension for the
west of Postdene. Possible long-term future residential extension integrating Boichoko with Postmasburg
and Newtown. Possible future residential development on Portion 3 & 5 of the farm Pensfontein No. 475.
The Tsantsabane SDF has indicated that it will include estimates of the demand for housing units across
different socio-economic categories and the planned location and density of future housing
developments. Tsantsabane Municipality through National Human Settlement Program has a R21 million
fund committed towards housing development with an aim to deliver 265 houses per year. Tsantsabane
intends to manage and provide a support system to allocate new houses to beneficiaries; assist with the
registration of beneficiaries for RDP houses and set up systems to assist with the relocation of informal
settlers to formal houses. The housing backlog is as follows:
Remaining gaps:
• Proper maintenance of existing bulk and link infrastructure;
• Economic and social development at risk due to infrastructure deterioration,
• Adherence to statutory plans such as the SDF,
• Verification process as per the Department of Human Settlement’s Standards,
• Housing need (demand) that is higher than the actual approved allocation (supply)
2.5.8. Dwelling type
The majority of residents (6767 households) reside in house or brick/concrete block structure houses,
followed by those who live (21952 households) in informal dwelling (shack; not in backyard; e.g. in an
informal/squatter settlement or on a farm). It is clear that the municipality needs to look at innovative ways
33
to respond to the plight of people living in informal dwelling, which could be by means of in situation
upgrade if the conditions allows for upgrade.
2.6 Environmental Analysis
2.6.1. Biodiversity
According to the National Biodiversity Strategy (NBS), biodiversity considerations are to be integrated into
all other strategies and plans at local government level, such as poverty eradication and developmental
programmes. The NBS provides a map for achieving the biodiversity related objectives contained, i.e.
reducing the rate at which biodiversity is lost. The goal of the NBS has always been to conserve and
manage biodiversity to ensure sustainability and that it can benefit to the people of South Africa, through
co-operation and partnerships that build on strengths and opportunities.
According to the National Spatial Biodiversity Assessment (NSBA), Tsantsabane Local Municipality and
the broader ZFM DM was not identified as a priority with regard to biodiversity. However, it continues to
be important to address the issue, since biodiversity makes a substantial contribution to the livelihoods of
rural communities, in the form of housing, fuel, food and medicines. The results of the assessment also
highlighted that many people have become alienated from nature, through apartheid policies and
processes like urbanization. Hence, much more needs to be done to make conservation more inclusive
and relevant to people’s lives.
To ensure sustainable livelihoods, it is important that economic opportunities are expanded in local areas,
in a way that takes both people and biodiversity into account. Nature-based tourism should encourage
local economic development. There is also a huge need to expand the skills of local communities and
0 1000 2000 3000 4000 5000 6000 7000 8000
House or brick/concrete block structure on…
Traditional dwelling/hut/structure made of…
Flat or apartment in a block of flats
Cluster house in complex
Townhouse (semi-detached house in a…
Semi-detached house
House/flat/room in backyard
Informal dwelling (shack; in backyard)
Informal dwelling (shack; not in backyard;…
Room/flatlet on a property or larger…
Caravan/tent
other
Dwelling type
34
encourage entrepreneurs in the tourism industry, the game farming industry and commercialization
enterprises, through training and support on access to finances and marketing.
It is also essential that policy making and implementation is fully participatory. The Environmental Impact
Assessment (EIA) processes need to be followed at all relevant levels, which include extensive public
participation. IDP’s should also include biodiversity considerations in all planning. Biodiversity must
therefore be fully integrated into all planning processes. The environmental Management and
Implementation Plans required under the National Environmental Management Act (NEMA) needs to
provide a broader understanding of the roles and responsibilities, process, structures and mechanisms to
facilitate co-operative governance and are required to identify weaknesses, establish clear actions for
addressing them, and measurable indicators for monitoring success.
2.6.2. Climate Change
Climate change is associated with an increase in average global temperatures, leading to changes in
rainfall patterns, and is likely to have significant impacts in some part of the world, especially Africa.
Indications are that climate change will result in worse floods and droughts reduce production and worsen
diseases. In South Africa the predictions are bad: South Africa could lose the entire Cape Floral Kingdom
and most of the mammal species for which the Kruger National Park is famous for.
It is against this growing concern that efforts should be made to improve the scientific understanding of
what drives the earth-atmosphere system, producing such changes, identify those areas that may be
particularly vulnerable to environmental changes and to improve adaptation and mitigation to enable
people, plant and animal communities to better live with climate change.
The Municipality held its first capacity building and awareness campaign in March 2010: National Water
Week (15-19 March) and Earth Hour (27 March). The purpose was to sensitize officials and councilors on
the role of that the municipality should play with regard to climate change and how to take it into
consideration when planning for projects and programmes (as indicated in the IDP).
2.6.3. Invasive Alien Species
The uncontrolled spread of invasive species (as later highlighted in the NC-SOER) is one of the key
threats to indigenous biodiversity in our country. This spread has negative impacts on the economy, in
sectors as diverse as: health, agriculture, water supply and tourism and is likely to become much worse
with climate change. Therefore there is an urgency to attend to the development of a Plan to monitor,
control and eradicate these species.
2.6.4. Environmental Threats
One of the key environmental issues identified in the province is the generation and disposal of a variety
of waste types, including municipal waste, agricultural, agro-processing etc. Given this variety, an equally
varied approach and appropriate competencies are required to manage the different types of waste and
to address the improper storage, handling and disposal of environmentally hazardous materials.
Another key issue of concern is the over-exploitation of natural resources, which include the following in
the case of Tsantsabane Local Municipality:
• Development in the high conservation areas
• Illegal hunting
• Fraud professional hunting and hunting contractors
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2.6.5. Northern Cape State of the Environment Report
According to the Report the following themes in the Province were identified:
• Atmosphere and Climate
• Biodiversity
• Environmental Management
• Fresh Water
• Human Settlements
• Land
• Marine and Coast
With regard to atmosphere and climate trends in temperature deviations indicate that temperature has
been increasing over the past few years, making it all the more important for Tsantsabane Local
Municipality to start taking into consideration the impact of climate change and global warming on
planning. Air pollution is furthermore not perceived as an important issue for the Province. In
Tsantsabane, however, this needs to be prioritized because of the major increase in mining developments
over the last few years and its impact on air quality and pollution in the area.
The primary threats to biodiversity, ecosystem goods and services are habitat transformation and
degradation, and invasive alien species. The concern regarding threats to biodiversity is borne out of the
recognition that our natural resources base provides a variety of goods and services on which life
depends. In Tsantsabane Local Municipality this natural resource base is directly threatened by mining
developments. The management of these is critical in ensuring effective conservation and sustainable use
of the biodiversity. Again making the need for Environmental Conservation and Management Plans as well
as plans to eradicate and/or monitor Alien Invasive Species very important for Tsantsabane.
With all the development taking place in the area, the demands for water have increase as well as for the
rest of the semi-arid province.
Furthermore the Province is characterized by very low population size and density, mostly owing to the
large land size of the Province. Human settlements are characterized by the legacy of apartheid, with
some areas in Tsantsabane Local Municipality showing a distinct lack of services and infrastructure in
comparison to other areas in the municipal area. Whilst the municipality has tried to address the issues of
basic service delivery and the provision of housing, some of the population still lacks these services.
Access to appropriate modes of transport is also a Provincial issue and concern. Issues such as culture
and heritage have been raised as important for consideration in the future planning of human settlements.
The Province is susceptible to land degradation. Policies and programmes are required to promote the
sustainable management of land resources in the Province. Mining has played a major role in shaping the
economic development of the area, but as mentioned above, has also had a negative impact on land
resources.
2.6.6 ZFM DM Environmental Management Framework
The area is rich in minerals which has historically been the mainstay of the area’s economy. Iron and
manganese mining are an important activity in the economy of the area. Haematite deposits in the form of
ferriginised banded ironstone occur as a cake or capping to the Gamagara hills which lies between
Postmasburg and Sishen. The ore is very pure and typically consist of 95% ferric oxide.
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There are significant undeveloped mineral resources left in the area that can contribute to future
economic growth in the area depending on the future viability of exploiting the minerals. Large areas of
un-rehabilitated and poorly rehabilitated mining activities (current and closed) have a significant negative
effect on the scenic environment in the area, especially in the mountainous areas.
Significant water requirements are the sub-area for urban use as well as rural domestic supplies and
stock watering. Groundwater utilization is important in the area and constitutes the only source of water
over much of the rural areas. As a result of the low rainfall over the area, the groundwater is mainly used
for rural domestic water supplies, stock watering and water supplies to inland towns. Recharge of
groundwater is limited and only small quantities can be abstracted on a sustainable basis.
Most of the ZFM District Area is in a natural state and the most significant spatial impact on the
environment has come from mining, which occupies an area of almost 7% of the total area.
The area has a good primary tarred road network that links the major towns with each other and to areas
outside the area. The secondary network is less developed and vast areas with sparse populations are
served only by means of a vast network of dirt roads of varying quality. Many of these roads are,
however, in such a bad state that it is an impediment to the development of the tourism potential of the
area.
The Sishen / Saldanha railway line which was built to transport iron ore from Sishen to the iron works at
Saldanha passes through an area and crosses the N10 highway and the Orange River just north of
Groblershoop from where it continues in a south-westerly direction past Kenhardt towards the coast.
Postmasburg and Lime Acres are also linked to Kimberley in the south-east and Sishen in the north by a
second railway line.
Both general and hazardous wastes are produced in the area. Waste in the “garden waste” classification
originating from households and agriculture is the biggest contributor to the waste stream. Waste
prevention and minimization are generally not practiced in the area. Recycling is concentrated in the
Upington area due to the availability of adequate quantities of recyclable material. Recycling focuses
mainly on cardboard and paper. Tsantsabane Local Municipality have a draft plan for future waste
management.
There is a need to develop and upgrade landfill sites in order to prevent environmental degradation and
meet the needs of the community.
The EMF further indicates strategies focusing on the alleviation of potential key development /
environment friction areas by providing direction in respect of how these friction areas should be dealt
with. The following strategies have been compiled and in future Tsantsabane will align its own
environmental planning to these:
• Strategy for the protection and conservation of high quality natural vegetation
• Protection of sensitive environmental features on large properties
• Protection of sensitive environmental features on large properties across ZFM DM
• Strategy for the protection of sensitive environmental features, surrounded or abutted by small
properties
Human resource capacity needed:
• Urgent implementation of new Organogram (include and refer to);
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• Lack of Personnel in certain Departments
• Lack of Skilled Staff and Relevant Training
• Implementation of Skills Development Plan;
• Development of a Recruitment and Retention Strategy
CHARPTER 3: - MUNICIPAL INSTITUTIONAL ANALYSIS
This chapter provides a synopsis of the institutional profile of the municipality and baseline information on
its capacity to deliver mandatory (local government) services within a five-year planning and
implementation timeframe. This capacity is also measured by service as listed in the ‘Schedu le of service
delivery standards.
3.1 POLITICAL STRUCTURE
Section 151(3) of the Constitution states that a municipal Council has the right to govern, on its own
initiative, the local government affairs of communities within the municipal area. Council performs both
legislative and executive functions and formulates policy within an oversight and participatory role.
Tsantsabane Municipal Council is a collective executive type and consists of thirteen (13) members,
seven (7) wards councilors and five (5) proportional representative councilors. The majority party in the
Council is the ANC.
Council and sub-committees
Ward Councilor Party Representing
1 E Poto ANC
2 M. Daniels ANC
3 E Phete ANC
4 D Modise ANC
5 T Saulus ANC
6 M Mashila ANC
7 I Tshabane ANC
PR J Swart DA
PR J Ruiters DA
PR D Esau EFF
PR A Davids STC
PR M. Mabilo STC
PR C Julies STC
Sub-committees Chairperson
Finance & Local Economic Development (FLED) Cllr. M Mashila
Community & Technical Services &
Development Planning (CTS)
Cllr. E Poto
Good Governance & Corporate services
(CGCS)
Cllr. M Mabilo
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3.2. ORGANISATIONAL STRUCTURE
In order for Tsantsabane Local Municipality to implement its IDP, sufficient resources are needed, i.e.
financial, human, equipment, assets and skills etc. This plan will look at the current state of the institution
in order to highlight the strengths and weaknesses, as well as to look at possible strategies to overcome
the gaps and challenges in order to be able to implement the IDP accordingly.
2.6.10. High level organogram
3.3. HUMAN CAPITAL
The framework for a Recruitment and Retention Strategy of staff has been developed in the 2017/18
financial year is revised annually. The implementation of the Framework will entail the development of a
plan to recruit and retain staff as a resource in the Municipality.
3.4. SKILLS DEVELOPMENT PLAN
A skills development plan exists and has been approved for the financial year 2018/19 and it has been
aligned to the priorities of the municipality for the financial year 2014/15. Through the IDP, the
Municipality identified a need to review the organizational structure of the Municipality with a view to
maximize service delivery efficiency and effectiveness. The intention and purpose of such a review factors
a significant role in delivering the objectives and goals as outlined in chapter 3.
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The review and possible adjustment of the organizational structure will be a monumental managerial
challenge, but it is needed to ensure that Tsantsabane management practices and procedures are
efficient and functional so that work can be done and goals can be met.
3.5. RESOURCES AND ARCHIVES
An archive system exists in the municipalities that are effective and efficient. This system needs to be
upgraded in terms of human resources procedures and policies.
3.6. ORGANISATIONAL POLICIES
Organisational policies
Policy Approved To Be Reviewed Amended
Advertising Procedures in the
Development Process
Nov 2003 Yes -2020/21
Customer Care Nov 2003 Yes -2020/21
Delegation of Framework Nov 2003 Yes -2020/21
Tariffs Nov 2003 Yes -2020/21
Financial Standing Orders Nov 2003 Yes -2020/21
Travel and Subsistence Dec 2003 Yes -2020/21
Vehicle Policy for Councillors, Mayor
and Officials
Sep 2007 Yes -2020/21
Banking and Investment Nov 2007 Yes -2020/21
Fixed Asset Management Nov 2007 Yes -2020/21
Fraud and Anti-Corruption Nov 2007 Yes -2020/21
Information and Communication
Technology
Nov 2007 Yes -2020/21
Supply Chain Management System Nov 2007 Yes -2020/21
Property Rates March 2008 Yes -2020/21
Petty Cash April 2009 Yes -2020/21
Bad Debt Write-off June 2009 Yes -2020/21
Indigent Policy June 2009 Yes -2020/21
Credit Control June 2009 Yes -2020/21
Debt Collection June 2009 Yes -2020/21
Free Basic Services Yes -2020/21
Human Resources Yes -2020/21
Other Policies Impacting IDP
Strategies
Code of conduct for Councilors: Disclosure of Interests Yes -2020/21
Vehicle Yes -2020/21
Recruitment and Selection Yes -2020/21
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Lock and Key Yes -2020/21
Employment Equity Yes -2020/21
Employment Practice Yes -2020/21
HIV/AIDS Yes -2020/21
Incapacity: Due to ill health / Injury Yes -2020/21
Incapacity: Due to poor work performance Yes -2020/21
Internal Bursary Yes -2020/21
Employees under the influence of intoxicating substances Yes -2020/21
Legal Aid Yes -2020/21
Occupational Health and Safety Yes -2020/21
Private work and declaration of interests Yes -2020/21
Relocation Yes -2020/21
Sexual Harassment Yes -2020/21
Land Alienation Policy Yes -2020/21
3.7. MUNICIPAL BUILDING
Short summary of buildings as part of the asset register of the Municipality include:
3.8. INFORMATYION TECHNOLOGY
Previously Tsantsabane Local Municipality has been operating its information Technology with the
assistance of contracted companies which has not assisted in its envisaged long term solutions to its
internal infrastructure and information secrecy. A lot of problems were encountered in the appointment of
some of the contractors.
There are improvements on the general state of information technology of the municipality in terms of the
audit outcome of the 2017/18 financial year. Apart from that there has been a huge visible improvement
on the IT Division which has been achieved since the employment of a permanent IT Officer.
Improvements such as:
• Municipality prepaid electricity system
• IT Infrastructure upgrade
• Network cabling
• Server room
• Hardware procurement
• Municipality website
• Internet and E-mail connection
• Online Technology for Electricity Vending
Municipal Offices Payment Offices Satellite Office
Postmasburg None Jenn Haven
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Municipality Policies: IT unit developed a workshop schedule to workshop the employees and councilors
on the ICT Policies. 12 audit queries relate to these policies and it is very important that these policies be
taken to council for approval. The IT Officer has assumed the responsibility of ensuring that IT policies are
in place.
IT Office acknowledges that there is still a lot to be done but commends the Management for the support
that it received during the current financial year.
3.9. ORGANISATIONAL PERFORMANCE MANAGEMENT SYSTEM
• Tsantsabane Local Municipality as part of the mSCOA implementation, we have adopted
Performance Management System developed by SEBATA and in line approved policy
performance management is implemented through quarterly review processes. For the 2020/21
the municipality will prioritize improvement implementation of performance management system
as critical tool for organizational performance management, evaluation and public accountability.
• Performance management overview and process :- In order to improve on performance
planning, implementation, reporting and measurement, the institution implemented the following
actions;
The MFMA Circular No.13 prescribes that:
• The IDP and budget must be aligned;
• The budget must address the strategic priorities;
• The SDBIP should indicate what the municipality is going to do during next 12 months;
and
• The SDBIP should form the basis for measuring the performance against goals set during
the budget /IDP processes.
The SDBIP were prepared as described in the paragraphs below and approved by the Mayor 28
days after approval of the budget. The overall assessment of actual performance against targets
set for the Key Performance Indicators as documented in the SDBIP is illustrated in terms of the
following assessment methodology:
• Performance Management System: - the municipality has a performance management system
in place. The municipal manager and the directors are all on performance management.
Performance reviews have been done for all four quarters.
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3.10. SERVICE DELIVERY BUDEGT IMPLEMENTATION PLAN (SDBIP)
3.10.1. KEY PERFORMANCE INDICATORS: FINANCE
• Full Compliance with mSCOA requirements by 2020/21 to Provincial Treasury.
• Reduce Unauthorized , Irregular and Fruitless Actual by 80%
• Increase actual operational revenue as to - 95%
• Quality Annual Financial Statements and Audit File particulars. Reduction of financial related
exceptions to 25 by 30/11/2020
• Develop internal Capacity for Compilation & submission of Annual Financial Statements
• 80% of assigned council resolutions executed by end of each quarter
• 100% review of Finance related policies, and by-Laws and procedures
• Free Basic Services - Percentage of households on the financial system (indigent households)
earning less than the amount approved by Council (2x old age pension allowance per month) with
access to free basic services
• Debtors administration - Debtors Test = (Gross Debtors / Total Revenue from Rates and Services)
x 365 Days
• Financial viability as expressed by the following ratios: (i) A=B-C/D. Where- “A” represents debt
coverage. “B” represents total operating revenue received - “C” represents operating grants; “Dl’
represents debt service payments (i.e. interest + redemption) due within the financial year
• Financial viability as expressed by the following ratios: A = B+C / D Where - “A” represents cost
coverage; “B” represents all available cash at a particular time; “C” represents investments; “D”
represents monthly fixed operating expenditure
• 100% of FMG grants spent by 30 June 2021
• 100% achievement of the department SDBIP targets
• Compilation and submission of Section 46 report by 31/08/2020 to AG
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3.10.2. KEY PERFORMANCE INDICATORS: COMMUNITY SERVICES & DEVELOPMENT
• Reduce 90% deviation of actual expenditure vs departmental budget by 30 June 2021
• 80% of assigned council resolutions executed by end of each quarter.
• 100% reduction of Unauthorized Irregular and Fruitless Expenditure in the department.
• 60% reduction of overtime expenditure in the community services department.
• 100% achievement of the department SDBIP targets.
• 100% rendering of refuse removal services as per service delivery programme per quarter
• 100% rendering of refuse removal services as per service delivery programme per quarter
(Satellite area).
3.10.3. KEY PERFORMANCE INDICATORS: OFFICE OF THE MUNICIPAL MANAGER
• 100% achievement of organizational Actual Operational expenditure / Operational
Budget. 5% Deviation of actual operational expenditure of departmental budget by 30
June 2021
• Actual Capital expenditure / Capital budget. 95% of capital expenditure of unallocated
funds by 30 June 2021
• 100% achievement of the department SDBIP targets
• 100% implementation of Performance Management System and 70% quarterly target
achievement.
• PMS framework : Signed Performance Agreements for all Section 57 employees by 30
July 2020 (Financial year 2020/2021)
• 3 year Risk based audit rolling plan and annual operational plan submitted to Audit
Committee and Accounting Officer for approval by 30 June 2021
• Project clean audit: to maintain a clean audit opinion - 2 Quarterly Reports by 30 June
2021
• Compilation and submission of Section 46 report by 31/08/2020 to AG
• Annual Report compiled and approved by 31 March 2021
3.10.4 KEY PERFORMANCE INDICATORS: CORPORATE SERVICES
• Reduce 90% deviation of actual expenditure vs departmental budget by 30 June 2021
• 80% of assigned council resolutions executed by end of each quarter.
• 100% reduction of Unauthorized Irregular and Fruitless Expenditure in the department.
• 60% reduction of overtime expenditure in the community services department.
• 100% achievement of the department SDBIP targets.
• Policy guidance - Updated register and publishing of all policies on data storage device
per quarter
• The number of people from employment equity target groups employed in the three
highest levels of management in compliance with a municipality's approved employment
equity plan
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• The percentage of a municipality’s salary budget actually spent on implementing its
workplace skills plan
3.10.5 KEY PERFORMANCE INDICATORS: TECHNICAL SERVICES
• Reduce 90% deviation of actual expenditure vs departmental budget by 30 June 2021
• 80% of assigned council resolutions executed by end of each quarter.
• 100% reduction of Unauthorized Irregular and Fruitless Expenditure in the department.
• 60% reduction of overtime expenditure in the community services department.
• 100% achievement of the department SDBIP targets.
• Energy Management -<10% electricity losses due to distribution per annum
• New electricity Pre-paid meter connections - 100% of requests completed
• Prepayment meters for Indigent customers - 100% of requests completed
• The number of full time equivalent jobs (FTEs) created through municipality’s local,
economic development initiatives including capital projects
• 100% of INEP allocation spent by 30 June 2021
• New electricity conventional meter connections - 100% of requests completed
• 80% of assigned council resolutions executed by end of each quarter
• Sewer connections : All new sewer connections to be executed within 90 days from date
of approval
• All new water connections to be executed within 90 days from date of approval
• 95% of quarterly samples meeting minimum biological standards
• Rendering of sanitation services as per service delivery programme per quarter
3.11. Good Governance
3.11.1. Communication Strategy
• The Communication Strategy was compiled with the assistance of GCIS and was
approved by Council in 2019/20. The challenge currently faced by the municipality is the
implementation of the strategy. The strategy focuses on basic legislation applicable to
local government with regard to proper communication internally and externally. It
includes further methods and best practices. It also looks at each of the departments
and their responsibility to communicate with other departments within the Municipality as
well as with the broader public. The strategy should be reviewed with the focus on
implementation. An implementation plan should be developed to form part of the IDP
Process Plan for future review processes.
3.11.2. HIV/AIDS Policy
• According to the list of policies, the HIV/AIDS policy for the Municipality is still
outstanding. As part of the IDP implementation, the Mayor and Council committed
themselves to the development of the policy which will include information sessions with
all of the employees. It will further give way to the establishment of an HIV/AIDS Forum for
the municipal area. The Forum will have to compile a strategic plan to address the issue across
the different sectors in the area.
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3.11.3. Ward committees
• All 7 wards has established ward committees for the term of office 2016 – 2021 in the
municipal area. They have undergone trainings provided through the department of
CoGHSTA, for them to understand their roles and responsibilities in the municipality.
However, have identified shortcomings, few of the committees meet on a regular basis,
in the past very few give collective inputs to the IDP and other related processes, very
few of them are completely functional and filling the gap between local government and
the broader community.
• The Mayor and Council has committed themselves to a second round of capacity
building workshops as well as to kick start the ward-based planning processes in each of
the wards. The objective of the ward committees’ training would be to become fully
functional and to assist the municipality and its council with community consultations
around IDP and other processes; i.e. budgets, PMS etc. It would also enhance public
participation and would further assist the Municipality with identifying priority areas and
empowerment needs.
3.11. 4. Community Development Workers (CDW)
• Community Development Workers are civil servants with specific and limited levels of
training. They are deployed at the community level and are community-based resource
persons for government. They are accountable to all three spheres of government and
are to facilitate community engagement and participation. They are further supported by
government and the public sector, but are not there to replace it.
Community Development Workers in Tsantsabane serves to:
• strengthen and enhance participatory democracy, by educating, empowering and
creating community awareness on government processes, policies and projects e.g.
Integrated Development Plan (IDP), Budget, Community Based Participation and
Development, etc.
• work with ward councilors and ward committee members to ensure that ward
committees are functional.
• work together with local municipalities, government sectors, NGO and CBO's in initiating
and facilitating job creation opportunities in a government effort to push back the
frontiers of poverty; and
• provide the necessary support to all emerging small business entrepreneurs by assisting
them with issues around access to capital and in some instances advise or refer them to
the relevant public or private agencies and institutions for the drafting of business plans.
3.11.5. Policies and bylaws: Good Governance
Advertising Procedures
Cell Phone for Ward Committee Members
Customer Care
Waste By-Law
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3.12. Special Programmes
• Disabled:-The municipality has a responsibility to mainstream disability issues as an integral part of relevant strategies for sustainable development of its municipal area and its community, by ensuring that people with disability are not excluded from any sphere of life; this can only be achieved through effective participation and inclusion in society for all persons with disabilities. In 2015/16 municipal council has resolved to allocated Erf 4400 Phutadichaba Street (White City) for the development of a center for the disabled. In 2019/20 Council in partnership with Kolomela, Assmag Beeshoek, Lesedit Solar and Department of Social Development (National Development Agency) has established Project Steering Committee to support Lebelelang Disability Non-Profit Organization (NPO) to build a center for the disabled.
• Children: - The municipality is responsible for mainstreaming children interest when it comes to
policy development, programming, and resources allocation and communication. In whatever
program municipalities engage on, there must be a child centered governance approach. The
children’s rights emerging issues for advocacy in service delivery, and policy formulation. There
are nine (9) Early Child Development Centers (ECD) within the municipal area that caters for the
development of children through education. With the ever-increasing population growth, the need
for additional ECD Centers must be confirmed.
To this end the municipality must develop it capacity to cater for the development of children in
the municipal area, busy collecting data on the children residing in the municipal area so that it is
able to develop a children ‘s rights profile. This will assist in developing strategies based on
children’s issues and hence develop children’s rights operating framework. Various capacity
interventions have been implemented through private sector stakeholders though CSI
intervention
facilitated by the municipality and the Department of Social Development.
• Gender:-The municipality has a role to provide policy guidelines, support and monitor and
evaluate implementation of gender friendly policies. It has to provide strategic interventions to
facilitate gender policy implementation. Gender mainstreaming is the systematic incorporation of
considerations into the policy, programs and practices, so that before decisions are taken an
analysis is made of circumstances and how they will impact on women and men. It is not just
focused on the participation of women but the quality and conditions of their participation.
Mainstreaming is a process towards achievement of transformation and development goals. The
municipality has engaged on a process of economic development of women such as farming,
SMME, gardening project and mining.
Women are encouraged to participate in all municipal process such as at management level.
Gender transformation presents an opportunity for the establishment and development of a body
of knowledge for sharing across municipalities and other spheres of government.
• Youth Programmes:- With the assistance of the municipality and in collaboration with Kumba
Resources, the Tsantsabane Youth Service Centre was established in 2009 and subsequently in
2019/20 the Youth Development Strategy was adopted by Council. The focus is skills
development for young people residing in the municipal area, in order to empower them to play a
vital role in the economy of the area.
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In the 2019/20 financial year Council has approved the implementation of various youth
development interventions for small medium enterprise development located in
Boichoko, Newtown and Postdene funded by the Kolomela Social Labour Plan (SLP)
arrangement. The Council has also resolved to allocate land and mobilize external
stakeholder partnership towards the building of the Youth Center in the 2020/21
Financial year
Chapter 4: Strategic Framework
This chapter outlines the vision and the strategic goals and objectives of the municipality. It
gives a picture on the ideal state of the municipality, what it will do to achieve its objectives. As
part of the 2020/21 IDP Budget Planning Process Plan, the Tsantsabane Local Municipality
through Empiron Consultancy Facilitation Services underwent a strategic planning session on
the 4th to 5th December 2019 hosted at Red Sands lodge in Kathu. Outcome of this strategic
planning process was the vision, mission, strategic objectives and values that the Special
Council meeting dating January 2020 adopted,
Vision
“Tsantsabane will be a municipality providing sustainable, effective and efficient services to all
its communities through sound management of scarce resources in order to better the quality of
life for all its residents”
Mission
• Contribute to the sustainable growth and development within its boundaries and the rest
of the Northern Cape.
• Creation of a healthy and environmentally friendly environment within and outside of the
Councils’ boundaries must be attempted.
• Promotion of a Local Economic Development should be furthered in order to promote
manufacturing and other minin g related sectors and investor interest in the region, and
• Promotion of a Local Economic Development should be furthered in order to promote
manufacturing and other mining related sectors and investor interest in the region.
Corporate values
The following values have been identified and proposed for the municipality: Tsantsabane Local
Municipality believes that a customer-centric approach shapes the values of the municipality.
The values of the municipality define the character on which leadership and employees behave
and conduct decisions. We therefor subscribe to the following core values:
• Transparency
• Excellence
• Responsiveness
• Integrity
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Local government mandate aligned to the national KPAs:
1) Spatial consideration
2) Basic services
3) Local economic development
4) Municipal excellence
5) Financial viability
6) Good governance and public participation
Key Performance Areas
The municipality aligned its key performance areas to the national KPAs and they are the
municipality’s strategic objectives.
KPA 1: Basic Services and Infrastructure Development
Outcome: -
• All communities have access to basic services delivered at an acceptable and agreed upon standard and the infrastructure is maintained to deliver such services in a sustainable manner.
• To improve & maintain current basic service delivery & infrastructure development through provision of basic services & specific infrastructural development projects
• To improve and maintain current basic service delivery and infrastructure development through the provision of basic services and specific infrastructural development projects
• To collaborate with other provincial and national government departments to respond to the current needs in the community around water, electricity, sanitation, housing, roads and sport and recreation
• To provide good quality water available to citizens & income generated through provision of this service
• To provide free basic service, i.e. water, electricity, sanitation and refuse removal
• To maintain a fully functional sewerage system
• To maintain the road infrastructure
• To improve storm water management
• To improve community safety through adequate street lighting
• To provide waste management services
KPA 2: Local Economic Development and Growth
Outcome: - A local economic development strategy that responds to food security, job creation, education and skills development, developed.
• To implement a LED strategy leading to economic growth and job creation
• To establish Tsantsabane Local Economic Development Agency to facilitate sustainable socio-economic development.
• To improve the municipal procurement processes and related programmes to promote local economic development
• To respond to environmental challenges and how the environment can be used to contribute to social and economic development
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KPA 3: Municipal Financial Viability & Sustainability
Outcome: - The municipality has a system in place to track spending in terms of budget allocations and is financially viable to deliver services to the community. Financial Management standards implemented in such a way that it received a clean audit.
• To pay all grants and creditors due
• To increase the revenue base during the next 5 years
• To increase accountability and fiscal discipline
• To work towards achieving a clean audit
• To develop financial policies, budget management system, asset and liability control mechanisms and strategies
• To develop ongoing skills of staff
KPA 4: Municipal Transformation and Institutional Development
Outcome: - The municipality is internally transformed to deliver the services required at an acceptable level with the support administrative systems and skilled staff whose performance is regularly monitored
• To embark on strategy to address administrative and financial challenges
• To implement structures, mechanisms and systems
• To improve the administrative management of the municipality
• To fill budgeted vacant posts
• To develop a comprehensive skills development plan based on actual training needs
• To secure funds from SETAs and training delivered
• To implement an organizational performance management system
• To implement a system to monitor and evaluate staff performance
• To improve the utilization of staff National
KPA 5: Good Governance and Public Participation Outcome: - Good governance systems are maintained in order to support proper communication and a healthy administration working towards a clean audit.
• To train councillors on their role and responsibilities
• To improve audit outcome i.t.o. compliance and governance matters
• To improve the functioning of the ward committee system
• To improve communication to all municipal stakeholders, including the public
• To strengthen the public participation processes
• To manage the municipal risk environment with internal audit processes
• To improve the management of performance in the municipality
• To maintain a healthy, safe and secure environment for all citizens in the municipal area
50
REVIEWED PROGRAMMES AND PROJECTS 2017/18 - 2021/22
ID/Ref Nr.
Key
Performa
nce Area
(KPA)
Key
Focus
Area
(KFA)
Predeter
mined
Objective
(Strategic
Objective
)
Capital or
Operational
Project
Activities,
Programs
, Capital
Projects
KPIs Wards GFS
Function
Targets Delive
ry:
Int/Ex
t
Funding
Source 5Yr
Total 17/18 18/19 19/20
20/2
1 21/22
IDP00 01
KPA4: Municipal Transformation and Institutional Development
KFA: Municipal Facilities
Improve Operations
Operational NC085_Biometrix and First Aid Kits
Install Biometrix system and buy First Aid kits
Whole of the Municipality
Function: Community and Social Services: Core Function: Human Resource
R500 000
R - R - R250 000
R250 000
R - Internal
Transfer from Operational Revenue
IDP00 02
KPA2: Local Economic Development
KFA: Libraries
Improve Operations
Capital NC085__Furniture and Office Equipment for Libraries
Buy Furniture for Libraries in Jehn-Haven; Boichoko)
Ward 3 & 4 Function: Community and Social Services: CoreNon-Core Function: Libraries and Archives
R 5 000
R 5 000
R - R - R - R - External
Provincial Government: Northern Cape:Libraries, Archives and Museums: Library Services
IDP00 03
KPA2: Local Economic Development
KFA: Libraries
Keep Municipal Buildings Functional
Capital NC085_ Furniture and Office Equipment
Buy Furniture for Town Library
Ward 7 Function: Community and Social Services: Non-core Function: Libraries and Archives
R 21 000
R 2 000
R 9 000
R 10 000
R - R - External
Provincial Government: Northern Cape:Libraries, Archives and Museums: Library Services
52
IDP00 04
KPA2: Local Economic Development
KFA: Libraries
Improve Operations
Capital NC085_Non-Infrastructure Furniture and Office Equipment_Library (Groenwater)
Buy Furniture for Groenwater Library
Ward 3 Function: Community and Social Services: Non-core Function: Libraries and Archives
R 18 554
R - R 11 230
R 7 324
R - R - External
Provincial Government: Northern Cape:Libraries, Archives and Museums: Library Services
IDP00 05
KPA2: Local Economic Development
KFA: Libraries
Developing Communities
Capital NC085_ Computer Equipment Tablets for a reading project Library (PMG)
Procure 20 Tables for Library in Town (Reading Project)
Ward 7 Function: Community and Social Services: Non-core Function: Libraries and Archives
R 30 000
R 30 000
R - R - R - R - External
Provincial Government: Northern Cape:Libraries, Archives and Museums: Library Services
IDP00
06
KPA2:
Local
Economic
Developm
ent
KFA
Libraries
Asset
Protection
Capital NC085_Proje
cts_Computer
Equipment_S
canners_Libra
ry (PMG)
Procure
Scanners for
stock taking
Whole of
the
Municipalit
y
Function:
Community
and Social
Services:
Non-core
Function:
Libraries and
Archives
R
6 000
R
6 000
R - R - R - R - External Provincial
Government:
Northern Cape:
Libraries,
Archives and
Museums: Library
Services
IDP00
07
KPA4:
Municipal
Transform
ation and
Institution
al
Developm
ent
KFA
Traffic
Control
Improve
Operation
s
Operatio
nal
NC085
_New_Extra
Offices Traffic
Building new
offices for the
Traffic
Department
District
Municipalit
y: DC08
ZFM
Function:
Road
Transport:
Core
Function:
Police Forces,
Traffic and
Street Parking
Control
R
350 0
00
R - R
350 0
00
R - R - R - Internal Transfer from
Operational
Revenue
IDP00
08
KPA4:
Municipal
Transform
ation and
Institution
al
Developm
ent
KFA
Traffic
Control
Improve
Operation
s
Operatio
nal
NC085__New
_Furniture
and Office
Equipment
Traffic
Procure
furniture and
equipment as
per list for the
traffic division.
Whole of
the
Municipalit
y
Function:
Road
Transport:
Core
Function:
Police Forces,
Traffic and
Street Parking
Control
R
359 3
00
R
290 0
00
R
33 00
0
R
36 30
0
R - R - Internal Transfer from
Operational
Revenue
53
IDP00
09
KPA4:
Municipal
Transform
ation and
Institution
al
Developm
ent
KFA
Traffic
Control
Improve
Operation
s
Operatio
nal
NC085_
_New
Machinery
and
Equipment
Traffic
Purchase traffic
signs and install
and purchasing
of the road
marking
Whole of
the
Municipalit
y
Function:
Road
Transport:
Core
Function:
Police Forces,
Traffic and
Street Parking
Control
R
372 3
99
R
280 0
00
R
44 00
0
R
48 39
9
R - R - Internal Transfer from
Operational
Revenue
IDP00
10
KPA4:
Municipal
Transform
ation and
Institution
al
Developm
ent
KFA
Libraries
Improve
Operation
s
Capital NC085_Non-
Infrastructure_
Library
(Postdene)
Purchasing of
new book
shelves
Ward 1 Function:
Community
and Social
Services:
Core
Function:
Libraries and
Archives
R
24 00
0
R - R
12 00
0
R
12 00
0
R - R - External Provincial
Government:
Northern Cape:
Libraries,
Archives and
Museums: Library
Services
IDP00
11
KPA4:
Municipal
Transform
ation and
Institution
al
Developm
ent
KFA
Libraries
Improve
Operation
s
Capital Air conditioner
Library
Procure 1 air
conditioner at
Postdene
Library
Ward 1 Function:
Community
and Social
Services:
Non-Core
Function:
Libraries and
Archives
R30 0
00
R30
000
R - R - R - R - External Provincial
Government:
Northern Cape:
Libraries,
Archives and
Museums: Library
Services
IDP00
12
KPA4:
Municipal
Transform
ation and
Institution
al
Developm
ent
KFA:
Traffic
Control
Impro
ve
Opera
tions
Operational Testing
Station-
Traffic
Upgrade the
testing station
as per the
multiyear
project new
legislation
Whole of
the
Municip
ality
Function:
Road
Transport:
Core
Function:
Police Forces,
Traffic and
Street Parking
Control
R
2 000 0
00
R
100 0
00
R
900 0
00
R
1 000
000
R - R - Internal Fund: Capital
Transfer from
Operational
Revenue
54
IDP00
13
KPA4:
Municipal
Transform
ation and
Institution
al
Developm
ent
KFA:
Municip
al
Facilitie
s
Impro
ve
Opera
tions
Operational Municipal
Buildings and
Properties.
Development of
Business plan
and funding
application for
upgrade of
community halls
All
Wards
Function:
Finance and
Administration
: Core
Function:
Property
Services
Administrative
R
78 000
R
24 00
0
R
24 00
0
R
30 00
0
R - R - Internal Fund: Capital
Transfer from
Operational
Revenue
IDP00
14
KPA4:
Municipal
Transform
ation and
Institution
al
Developm
ent
KFA:
Systems
and
Technol
ogy
Impro
ve
Opera
tions
Operational New
Computer
Software
Corporate
Services.
Improve the
computer
system with
new equipment
as per list
Whole of
the
Municip
ality
Function:
Finance and
Administration
: Core
Function:
Information
Technology
R
2 322 2
90
R
730 4
00
R
773 6
20
R
818 2
70
R - R - Internal Fund: Capital
Transfer from
Operational
Revenue
IDP00
15
KPA4:
Municipal
Transform
ation and
Institution
al
Developm
ent
KFA:
Governa
nce
Structur
es
Impro
ve
Opera
tions
Operational NC085_New
Computer
Equipment
Corporate
Services.
Procure IT
Equipment for
the municipality
as per IT
program
Whole of
the
Municip
ality
Function:
Finance and
Administration
: Core
Function:
Human
Resources
R
101 809
R
32 00
0
R
33 88
8
R
35 92
1
R - R - Internal Fund: Capital
Transfer from
Operational
Revenue
IDP00
16
KPA4:
Municipal
Transform
ation and
Institution
al
Developm
ent
KFA:
Governa
nce
Structur
e
Impro
ve
Opera
tions
Operational NC085_New
Office
Furniture and
Equipment
_Corporate
Services.
Procure office
furniture for
Corporate
Service
Whole of
the
Municip
ality
Function:
Finance and
Administration
: Core
Function:
Administrative
and
Corporate
Support
R
25 000
R
25 00
0
R - R - R - R - Internal Fund: Capital
Transfer from
Operational
Revenue
55
IDP00
17
KPA4:
Municipal
Transform
ation and
Institution
al
Developm
ent
KFA:
Governa
nce
Structur
es
Impro
ve
Opera
tions
Operational NC085_New_
Office
Furniture and
Equipment
Corporate
Services.
Procure office
furniture for IT
Office
Whole of
the
Municip
ality
Function:
Finance and
Administration
: Core
Function:
Information
Technology
R
75 916
R
24 00
0
R
25 41
6
R
26 50
0
R - R - Internal Fund: Capital
Transfer from
Operational
Revenue
IDP00
18
KPA4:
Municipal
Transform
ation and
Institution
al
Developm
ent
KFA:
Governa
nce
Structur
es
Impro
ve
Opera
tions
Operational NC085_New_
Office
Furniture and
Equipment
Corporate
Services.
Procure filing
equipment to
make the
registration and
filing section
more productive
Whole of
the
Municip
ality
Function:Fina
nce and
Administration
: Core
Function:Adm
inistrative and
Corporate
Support
R
120 899
R
38 00
0
R
40 24
2
R
42 65
7
R - R - Internal Fund: Capital
Transfer from
Operational
Revenue
IDP00
19
KPA4:
Municipal
Transform
ation and
Institution
al
Developm
ent
KFA:
Governa
nce
Structur
es
Opera
tional
Activit
y
Operational NC085_
Interest and
Depreciation
Human
Resources
Improve
Accounting
Whole of
the
Municip
ality
Function:Fina
nce and
Administration
:Core
Function:Hum
an Resources
R
311 225
R
55 00
0
R
58 24
5
R
61 74
0
R
65 75
3
R
70 48
7
Internal Fund:Operational:
Revenue:General
Revenue:Taxes:P
roperty
Rates:Levies
56
IDP00
20
KPA4:
Municipal
Transform
ation and
Institution
al
Developm
ent
KFA:
Governa
nce
Structur
es
Impro
ve
Opera
tions
Operational NC085_New_
Office
furniture
Human
Resource
Procure
furniture for the
office as per list
Whole of
the
Municip
ality
Function:Fina
nce and
Administration
:Core
Function:Hum
an Resources
R
63 631
R
20 00
0
R
21 18
0
R
22 45
1
R - R - Internal Fund:Capital>Tra
nsfer from
Operational
Revenue
IDP00
21
KPA4:
Municipal
Transform
ation and
Institution
al
Developm
ent
KFA:
Capital
Expendi
ture
Impro
ve
Opera
tions
Operational NC085_New
Computer
Equipment
Finance
Department
Upgrade of
computers in
the finance
department
Whole of
the
Municip
ality
Function:Fina
nce and
Administration
:Core
Function:Fina
nce
R
40 000
R
40 00
0
R - R - R - R - Internal Fund:Capital>Tra
nsfer from
Operational
Revenue
IDP00
22
KPA4:
Municipal
Transform
ation and
Institution
al
Developm
ent
KFA:
Capital
Expendi
ture
Impro
ve
Opera
tions
Capital NC085_New_
Office
Furniture and
Equipment
Finance
Department
Procure
furniture for the
Finance
Department to
improve the
quality of
operations
Whole of
the
Municip
ality
Function:Fina
nce and
Administration
:Core
Function:Fina
nce
R
54 000
R
54 00
0
R - R - R - R - Internal Fund:Capital>Tra
nsfer from
Operational
Revenue
IDP00
23
KPA4:
Municipal
Transform
ation and
Institution
al
Developm
ent
KFA:
Governa
nce
Structur
es
Impro
ve
Opera
tions
Capital NC085_Coun
cil Chamber
Upgrading of
Council
Chamber
Whole
of the
Municip
ality
Function:Exec
utive and
Council:Core
Function:May
or and
Council
R
350 000
R
350 0
00
R - R - R - R - Internal Fund:
Capital>Transfer
from Operational
Revenue
57
IDP00
24
KPA4:
Municipal
Transform
ation and
Institution
al
Developm
ent
KFA:
Governa
nce
Structur
es
Impro
ve
Opera
tions
Capital NC085_
Office
Computer
Equipment
Mayoral Office
Purchase New
computer
system for
Mayor's Office
Whole
of the
Municip
ality
Function:Exec
utive and
Council:Core
Function:May
or and
Council
R
57 268
R
18 00
0
R
19 06
2
R
20 20
6
R - R - Internal Fund:Capital>Tra
nsfer from
Operational
Revenue
IDP00
25
KPA4:
Municipal
Transform
ation and
Institution
al
Developm
ent
KFA:
Governa
nce
Structur
es
Impro
ve
Opera
tions
Capital NC085_
Office
Equipment
Mayoral
Office.
Procure new
Furniture and
Office
equipment for
Mayor’s Office
Whole
of the
Municip
ality
Function:Exec
utive and
Council:Core
Function:May
or and
Council
R
47 723
R
15 00
0
R
15 88
5
R
16 83
8
R - R - Internal Fund:Capital>Tra
nsfer from
Operational
Revenue
IDP00
26
KPA4:
Municipal
Transform
ation and
Institution
al
Developm
ent
KFA:
Governa
nce
Structur
es
Impro
ve
Opera
tions
Capital NC085_
_Office
Furniture
Municipal
Manager
Procure a typing
chair for the
MM's office
Whole
of the
Municip
ality
Function:
Executive and
Council: Core
Function:
Municipal
Manager,
Town
Secretary and
Chief
Executive
R 5 727 R
1 800
R
1 906
R
2 021
R - R - Internal Fund:
Capital>Transfer
from Operational
Revenue
58
IDP00
27
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Governa
nce
Structur
es
Accou
ntabilit
y
Operational NC085_Energ
y source
_Electricity
distribution_In
terest and
Depreciation_
Electricity
department
Improve
Accounting
Whole
of the
Municip
ality
Function:Ener
gy
Sources:Core
Function:Elect
ricity
R
3 961 0
31
R
700 0
00
R
741 3
00
R
785 7
78
R
836 8
53
R
897 1
00
Internal Fund:Operational:
Revenue:General
Revenue:Taxes:P
roperty
Rates:Levies
IDP00
28
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Governa
nce
Structur
es
Gover
nance
Capital NC085_Electri
city
Distribution
services
Upgrade of
electricity
network in Town
to reduce
revenue losses
Ward 5
& 7
Function:Ener
gy
Sources:Core
Function:Elect
ricity
R
3 961 0
28
R
700 0
00
R
741 3
00
R
785 7
78
R
836 8
50
R
897 1
00
External Mining
Companies
IDP00
29
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Electricit
y
Infrastru
cture
Electri
city
provisi
on
exten
d
Capital NC085_Electri
city
Distribution
services
Electrification of
116 households
in Greenfields
Ward 1 Function:Ener
gy
Sources:Core
Function:Elect
ricity
R
15 000
000
R - R
5 000
000
R
10 00
0 000
R - R - External National
Government:
Integrated
National
Electrification
Programme
59
IDP00
30
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Revenu
e
Manage
ment
Impro
ve
Cash
Flow
Capital NC085_
Maintenance
Portable water
Monitor the
implementation
of prepaid water
metering
system and
installation of
communal taps
in all areas
Whole
of the
Municip
ality
Function:Wat
er
Management:
Core
Function:Wat
er Distribution
R
41 460
000
R
16 50
0 000
R
15 84
0 000
R
9 120
000
R - R - External Mining
Companies
IDP00
31
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Governa
nce
Structur
es
Impro
ve
Suppl
y of
Water
Capital NC085_Water
Distribution
Extension of
infrastructure for
water and
prepaid
communal taps
in Maremane
Ward 6 Function:Wat
er
Management:
Core
Function:
Water
Distribution
R
4 000 0
00
R
4 000
000
R - R - R - R - External National
Government:
Municipal Water
Infrastructure
Grant
IDP00
32
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Governa
nce
Structur
es
Exten
d
Road
Netwo
rk
Capital NC085_Road
s
Extension of
Road network
completed and
functional
All
Wards
Function:Roa
d Transport
:Core
Function:Roa
ds
R
33 414
716
R
10 78
5 468
R
10 89
2 929
R
11 73
6 319
R - R - External National
Government:
Municipal
Infrastructure
Grant
60
IDP00
33
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Governa
nce
Structur
es
Exten
d
Sewer
Netwo
rk
Capital NC085_Sewe
rage
Maintenance of
sewer network
and
maintenance
plan
Whole
of the
Municip
ality
Function:Wat
er
Management:
Core
Function:Roa
ds sewerage
R1 3
325655
R- R- R- R1 32
5 655
R- External Mining
Companies
IDP00
34
KPA3:
Municipal
Finance
managem
ent and
viability
KFA:
Revenu
e
Manage
ment
Impro
ve
Cash
Flow
Operational NC085_
Finance
Collect data
from
households that
do not receive
municipal
accounts
All
Wards
Function:Fina
nce and
Administration
:Core
Function:Fina
nce
R 262
648
R 43
285
R 45
450
R 50
000
R 59
803
R 64
110
Internal None
IDP00
35
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Expendi
ture and
Cost
Manage
ment
Reduc
e Line
Losse
s
Operational NC085_Maint
enance_Electr
icity
Distribution
Services
Repairing and
replacement of
the reported
meters to
reduce losses
All
Wards
Function:Fina
nce and
Administration
:Core
Function:Fina
nce
R 425
000
R 60
000
R 75
000
R 80
000
R 95
000
R 115
000
Internal Fund:
Capital>Transfer
from Operational
Revenue
IDP00
36
KPA1: Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Intern
al
Audit
Adminis
trative
Account
ability
Operational NC085_
Municipal
Operational
Cost Office of
the Chief
Financial
Officer.
Implement
credible Audit
Action and
Implementation
plan
Whole
of the
Municip
ality
Function:
Finance
R10 000 R R R R R10
000
R- Fund:
Capital>Transfer
from Operational
Revenue
61
IDP00
37
KPA3:
Municipal
Finance
managem
ent and
viability
KFA:
Reven
ue
Mana
geme
nt
Improve
Cash
Flow
Operational NC085_Repla
cing
Conventional
Meters with
Pre-Paid
Electricity
Meters
Develop a
business plan
and funding
sources to
implement pre-
paid and smart
meter
Whole
of the
Municip
ality
Function:
Electricity
Service
R
6 025 54
8
R
1 080 000
R
1 144
800
R
1 213
488
R
1 255
960
R
1 331
300
External Mining
Companies
IDP00
38
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Gover
nance
Struct
ures
Adminis
trative
Account
ability
Operational NC085_
Municipal
Operational
Cost Office of
the Chief
Financial
Officer
Develop
credible,
updated
indigent register
Whole
of the
Municip
ality
FunctionM
aintenanc
e Portable
water:Cor
e
Function:
Water
R
70 000
R 5 000 R
5 000
R
5 000
R
50 00
0
R
5 000
Internal None
IDP00
39
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Gover
nance
Struct
ures
Adminis
trative
Account
ability
Operational NC085 _ Municipal
Operational
Cost Office of
the Chief
Financial
Officer
Submit credible
AFS, Draft
Annual Report
and APR
Whole
of the
Municip
ality
Function:F
inance
and
Administra
tion:Core
Function:F
inance
R - R - R- R - R - R - External None
IDP00
40
KPA1: Basic
Service
Delivery
and
Infrastruct
ure
Developm
KFA:
Expen
diture
and
Cost
Mana
geme
nt
Effectiv
e use of
resourc
es
Operational NC085 _
Maintenance_
Use of
Boreholes_W
ater Services
Implementation
of corrective
maintenance of
12 boreholes
Whole
of the
Municip
ality
Function:F
inance
and
Administra
tion:Core
Function:
Water
R
2 150 00
0
R
500 000
R - R
1 200
000
R R - Internal None
62
ent
IDP00
41
KPA3:
Municipal
Finance
managem
ent and
viability
KFA:
Expen
diture
and
Cost
Mana
geme
nt
Effectiv
e use of
resourc
es
Operational NC085_
_Operational
Project_New_
Drilling of New
Boreholes_W
ater Services.
Reduce
operational
expenditure
Whole
of the
Municip
ality
Function:F
inance
and
Administra
tion:Core
Function:
Water
R13200
000
R3 50000 R4 20
0 000
R5 50
0 000
R - R - External None
IDP00
42
KPA1: Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Expen
diture
and
Cost
Mana
geme
nt
Effectiv
e use of
resourc
es
Capital NC085_Maint
enenace_Elec
tricity
Distribution
Services
Report on street
lights replaced
with LED lights
All
Wards
Function:F
inance
and
Administra
tion:Core
Function:
Roads
R
22 342 5
00
R
6 750 000
R
7 425
000
R
8 167
500
R- R -
External Mining and Solar
companies
IDP00
43
KPA5:
Good
Governan
ce and
Public
Participati
on
KFA:
Public
Partici
pation
&
Comm
unicati
on
Build
knowled
ge base
of
Custom
ers
Operational NC085_Com
munication
with Public
Improve
communication
Whole
of the
Municip
ality
Function:F
inance
and
Administra
tion:Core
Function:
Administra
tive and
Corporate
R
1 690 00
0
R
240 000
R
280 0
00
R
340 0
00
R 380 R 450
000
Internal None
63
Support
IDP00
44
KPA5:
Good
Governan
ce and
Public
Participati
on
KFA:
Bylaw
s,
Policie
s and
Proce
dures
Enforce
By-
Laws
Operational NC085_Enfor
cement of By-
Laws
Facilitate
implementation
of municipal by-
laws
Whole
of the
Municip
ality
Function:
Road
Transport:
Core
Function:
Police
Forces,
Traffic and
street
Parking
Control
R
245 000
R 30 000 R
35 00
0
R
45 00
0
R60
000
R
75 00
0
Internal None
IDP00
45
KPA5:
Good
Governan
ce and
Public
Participati
on
KFA:
Bylaw
s,
Policie
s and
Proce
dures
Enforce
By-
Laws
Operational NC085_Enfor
cement of By-
Laws
Drafting of By-
Laws for refuse
removal
Whole
of the
Municip
ality
Function:
Waste
Managem
ent:Core
Function:
Solid
Waste
Removal
R
115 000
R 15 000 R
18 00
0
R
22 00
0
R
28 00
0
R
32 00
0
Internal None
64
IDP00
46
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Mainta
ining
Area
Maintai
ning
Assets
Operational NC085_Maint
enance of
Roads and
Storm Water
Implement 60%
of municipal
roads and storm
water
operational and
maintenance
plan targets
All
Wards
Function:
Road
Transport:
Core
Function:
Roads
R
4 300 00
0
R
750 000
R
800 0
00
R
850 0
00
R
900 0
00
R
1 000
000
Internal None
IDP00
47
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Mainta
ining
Area
Ensure
that the
water
service
is
provide
d in line
with the
service
standar
d
Operational NC085_Maint
enance of
Water
Implement 60%
of municipal
water and
operational and
maintenance
plan targets
All
Wards
Function:
Water
Managem
ent:Core
Function:
Water
Distributio
n
R
6 250 07
3
R
1 100 000
R
1 164
900
R
1 234
794
R
1 327
403
R
1 422
976
Internal None
IDP00
48
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Mainta
ining
Area
Ensure
that the
electricit
y
service
is
provide
d
Operational NC085_Maint
enance of
Electricity
Maintenance All
Wards
Function:
Energy
Sources:C
ore
Function:
Electricity
R
6 250 07
3
R
1 100 000
R
1 164
900
R
1 234
794
R
1 327
403
R
1 422
976
Internal None
65
IDP00
49
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Mainta
ining
Area
Ensure
that
refuse
removal
service
is
provide
d
Operational NC085_Maint
enance of
Refuse
Removal
Implement 60%
Refuse
collection
programme
All
Wards
Function:
Waste
Managem
ent: Core
Function:
Solid
Waste
Removal
R20000
0
R- R- R2000
00
R- R- Internal Fund:
Capital>Transfer
from Operational
Revenue
IDP00
50
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Mainta
ining
Area
Provide
efficient
and
effective
sewera
ge
service
Operational NC085_Maint
enance of
Sewerage
Review and
implement
sewerage
infrastructure
Maintenance
plan
All
Wards
Function:
Waste
Water
Managem
ent: Core
Function:
Sewerage
R
639 424
R
113 000
R
119 6
67
R
126 8
47
R
135 0
92
R
144 8
18
Internal None
IDP00
51
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Mainta
ining
Area
Manage
Cemete
ries
Operational NC085_Maint
enance
Cemeteries
Implement 60%
of municipal
cemetery
operational &
maintenance
plan
Whole
of the
Municip
ality
Function:
Communit
y and
Social
Services:
Core
Function:
Cemeterie
s, Funeral
Parlours
and
Crematori
ums
R
452 689
R 80 0 R
84 72
0
R
89 80
3
R
95 64
0
R
102 5
2
Internal None
66
IDP00
52
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Mainta
ining
Area
Municip
al
Building
use
effective
ly
Operational NC085_Maint
enance
Municipal
Buildings
Maintenance of
Municipal
buildings
Whole
of the
Municip
ality
Function:
Communit
y and
Social
Services:
Core
Function:
Communit
y Halls
and
Facilities
R
2 263 44
8
R 400 000 R
423
600
R
449
016
R 478
200
R 512
632
Internal None
IDP00
53
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Mainta
ining
Area
Transpo
rt
Operational NC085_Maint
enance Fleet
Maintenance of
Municipal Fleet
Whole
of the
Municip
ality
Function:F
inance
and
Administra
tion:Core
Function:F
leet
Managem
ent
R - R - R -
R - R - Internal None
IDP00
54
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Mainta
ining
Area
Traffic
Control
Operational NC085_Maint
enance of
street lights
Replace all
public street
lights with solar
lights or energy
efficiency
Whole
of the
Municip
ality
Function:
Energy
Sources:C
ore
Function:
Street
Lighting
R
1 560 59
9
R
275 000
R 291
225
R
308 6
99
R
330 9
25
R
354 7
50
Internal None
67
IDP00
55
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Mainta
ining
Area
Traffic
Control
Operational NC085_Maint
enance of
Road Signage
Implement
partnership to
enhance road
public safety
through 5 speed
humps and 3
road signs
Whole
of the
Municip
ality
Function:
Energy
Sources:C
ore
Function:
Roads
R
28 859
R 5 100 R 5
401
R
5 725
R
6 097
R
6 536
Internal None
IDP00
56
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Mainta
ining
Area
Roads
and
Storm
water
infrastru
cture
Capital NC085_Road
s
Submit
business plan
for upgrading of
roads and storm
water at Mqomo
and 5th Avenue
streets for
funding
Ward 3
& 4
Function:
Road
Transport:
Core
Function:
Roads
R- R- R- R- R- R- External Mining
Companies
IDP00
57
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Roads
and
Storm
Water
Infrast
ructur
e
Develop
ment &
empow
erment
Capital NC085_Upgra
de of gravel
access roads
Upgrading and
maintenance of
gravel roads in
all residential
areas
(Kraanvoel;Hoe
p
Hoep;Ratanang;
Angelier;Butterfl
y;Brown; Water
& De Bryn
Street
Wards
2;5 & 7
Function:
Road
Transport:
Core
Function:
Roads
R13 000
000
R - R- R -
R
13 00
0 000
R - External Mining
Companies
68
IDP00
58
KPA1: Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Roads
and
Storm
Water
Infrast
ructur
e
Develop
ment &
empow
erment
Capital NC085_Capit
al
Expenditure_
Roads
Upgrade of End
Street storm
water
5 & 7 Function:
Road
Transport:
Core
Function:
Roads
R - R - R -
R - R - Internal Fund:Capital>Tra
nsfer from
Operational
Revenue
IDP00
59
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Roads
and
Storm
Water
Infrast
ructur
e
Develop
ment &
empow
erment
Capital NC085_Capit
al
Expenditure_
Roads
Extension of
Road network
completed and
functional
All
Wards
Function:
Road
Transport:
Core
Function:
Roads
R - R - R- R - R - R - Internal Fund:Capital>Tra
nsfer from
Operational
Revenue
IDP00
60
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Roads
and
Storm
Water
Infrast
ructur
e
Develop
ment &
empow
erment
Capital NC085_Capit
al
Expenditure_
Roads
Develop and
implement
business plan
for upgrading of
Skool Street
Ward 3 Function:
Road
Transport:
Core
Function:
Roads
R
1 000 00
0
R- R- R
1 000
000
R - R - External Mining
Companies
69
IDP00
61
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Roads
and
Storm
Water
Infrast
ructur
e
Develop
ment &
empow
erment
Capital NC085_Capit
al
Expenditure_
Roads
Develop and
implement
business plan
for upgrading of
Motlaetsaba
Street
Ward 4 Function:
Road
Transport:
Core
Function:
Roads
R - R - R- R - R - R -
External Mining
Companies
IDP00
62
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Roads
and
Storm
Water
Infrast
ructur
e
Develop
ment &
empow
erment
Capital NC085_Capit
al
Expenditure_
Roads
Upgrade of
Road and storm
water at
Matsobane
street
Ward 4 Function:
Distriution
Services
Core
Function:
Solid
Waste
R- R- R- R- R- R- External National
Government
Mining
Companies
IDP00
63
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Water
and
Sanita
tion
Infrast
ructur
e
Develop
ment &
empow
erment
Capital NC085_Wast
er Water
Treatment
Complete
WWTW
Feasibility study
and secure
funding for
upgrade of
WWTP
Municip
alities:N
C085
Tsantsa
bane:W
hole of
the
Municip
ality
Function:
Waste
Water
Managem
ent:Core
Function:
Sewerage
R - R - R- R - R - R -
External SLP and RBIG
70
IDP00
64
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Sustai
nable
Huma
an
Settle
ment
Develop
ment &
empow
erment
Capital NC085_Sustai
nable Human
Settlement
Replacement of
asbestos roofs
in Postdene
Ward 1 Function:
Disaster
Managem
ent
Core
Function:
Social
Services
R98 000
000
R- R- R- R98 0
00
000
R- External Mining
Companies
IDP00
65
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Water
and
Sanita
tion
Infrast
ructur
e
Develop
ment &
empow
erment
Capital NC085_Water
Distribution
Replacement of
bulk asbestos
pipes in Town
and Postdene
Ward 1
& 5
Function:
Water
Managem
ent:Core
Function:
Water
Distributio
n
R95 000
000
R -
R- R -
R95 0
00
000
R- External Mining
Companies
IDP00
66
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Roads
and
Storm
Water
Infrast
ructur
e
Develop
ment &
empow
erment
Capital NC085_ Road
network
Upgrade of
access road –
Jenn Haven
Provincial Road
Ward 3 Function:
Road
Transport:
Core
Function:
Roads
R
80 000 0
00
R - R - R - R - R80 0
00
000
External National
Government:MIG
71
IDP00
67
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Water
and
Sanita
tion
Develop
ment &
empow
erment
Capital NC085_
Security
Services
Installation of
Security
Telematics
Whole
of the
Municip
ality
Function:
Water
Managem
ent:Core
Function:
Water
Distributio
n
R
1 000 00
0
R
1 000 000
R - R - R - External Mining
Companies
IDP00
68
KPA4:
Municipal
Transform
ation and
Institution
al
Developm
ent
KFA:
Librari
es
Develop
ment &
empow
erment
Capital NC085_Install
book detector
Procure and
install book
detector
Whole
of the
Municip
ality
Function:
Communit
y and
Social
Services:
Non-Core
Function:L
ibraries
and
Archives
R
500 000
R - R
500 0
00
R - R - R - Internal Fund:Capital>Tra
nsfer from
Operational
Revenue
IDP00
69
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Street
Cleani
ng
Develop
ment &
empow
erment
Operational NC085_Solid
waste
Implement RDP
standard
Refuse
collection
programme in
Mountain
view;Carnation;
Postdene
1&2;Groenwater
;Jehn-Haven
and Skeyfontein
Ward
1;3 and
7
Function:
Waste
Managem
ent
:Non-Core
Function:
Solid
Waste
R- R- R- R - R - R- Internal Fund:Capital>
Transfer from
Operational
Revenue
72
IDP00
70
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Traffic
Contro
l
Develop
ment &
empow
erment
Capital NC085_
Security
Services
Purchasing and
installation of
play detectors
Whole
of the
Municip
ality
Function:
Municipal
Facilities
Non-Core
Function:
Traffic and
Law
enforceme
nt
services
R120
000
R120 000 R- R- R- R- Internal Fund:Capital>
Transfer from
Operational
Revenue
IDP00
71
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Parks
and
Open
space
s
Develop
ment &
empow
erment
Capital NC085_Recre
ational
Facilities
Upgrade of
parks and
recreation at
West End and
Carnation
Ward 1
& 5
Function:
Sport and
Recreatio
n:Core
Functio:C
ommunity
Parks
R1000
000
R- R100
000
R- R- R- Internal Fund:Capital>
Transfer from
Operational
Revenue
IDP00
72
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Cemet
eries
Develop
ment &
empow
erment
Capital NC085_Ceme
teries
Upgrade of
cemetery to
make it more
user friendly
Whole
of the
Municip
ality
Function:
Communit
y and
Social
Services:
Core
Function:
Cemetarie
s,Funeral
Parlours
and
Cremoriu
ms
R5 000
000
R- R5 00
000
R- R- R- Internal Fund:Capital>
Transfer from
Operational
Revenue
73
IDP00
73
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Cemet
eries
Develop
ment
and
empow
erment
Capital NC085_Ceme
teries
Identify site and
draw up a
business plan
for new
cemeteries for
all settlements
Whole
of
Tsantsa
bane
Function:
Communit
y and
Social
Services:
Core
Function:
Cemetarie
s,Funeral
Parlours
and
Cremoriu
ms
R- R- R- R- R- R- Internal Fund:Capital>
Transfer from
Operational
Revenue
IDP00
74
KPA2:
Local
Economic
Developm
ent
KFA:
Sport
and
Recre
ation
Develop
ment
and
empow
erment
Operational Sport and
Recreation
Upgrade of
sportsgrounds
in Postdene and
Boichoko
Ward
1;3;4 &
7
Function:
Sport and
Recreatio
n
Core
Function:
Communit
y Parks
R-- R- R- R- R- R- Internal Fund:Capital>
Transfer from
Operational
Revenue
IDP00
75
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Sustai
nable
Huma
n
Settle
ment
Develop
ment
and
empow
erment
Capital NC085_Land
Use and
Spatial
Planning
4460 Mix
Typology
project
(Infrastructure
and Human
Settlement
Development)
Whole
of
Tsantsa
bane
Function:I
nfrastructu
re
Developm
ent
Core-
Function:
Housing
R21 000
000
R- R14 0
00
000
R7 00
0 000
R- R- External National
Government:
MIG
74
IDP00
76
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Sustai
nable
Huma
n
Settle
ment
Develop
ment
and
empow
erment
Capital NC085_Housi
ng
Construction of
50 houses in
Marantheng
Ward 5 Function:
Sustainabl
e Human
Settlemen
t
Non Core-
Function:
Housing
Administra
tion
R1 800
000
R1
800000
R- R- R- R- Internal National
Government:
Human
Settlement
IDP00
77
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Water
and
Sanita
tion
Develop
ment
and
empow
erment
Capital NC085_Water
Distribution
Extension of
infrastructure for
water
All
Wards
Function:
Water
Managem
ent -
Core-
Function:
Water
Distributio
n
R5 000
000
R- R5 00
0 000
R- R- R- External National
Grant:MISA
IDP00
78
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Water
and
Sanita
tion
Develop
ment &
empow
erment
Capital NC085_Water
Distribution
Extension of
infrastructure for
water supply in
Maremane(Pha
se 3)
Ward 6 Function:
Water
Managem
ent:Core
Function:
Water
Distributio
n
R
5 000 00
0
R - R
5 000
000
R - R - R - External National
Grant:MISA
75
IDP00
79
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Water
and
Sanita
tion
Develop
ment &
empow
erment
Capital NC085_Water
Distribution
Extension of
infrastructure for
water supply in
Skeifontein 3
Ward 7 Function:
Water
Managem
ent:Core
Function:
Water
Distributio
n
R - R - R -
R - R - R - External National
Grant:MISA
IDP00
80
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Water
and
Sanita
tion
Develop
ment &
empow
erment
Capital NC085_Water
Distribution
Extension of
water supply
infrastructure in
Skeyfontein 3
Ward 7 Function:
Water
managem
ent Core
Function:
Water
Distributio
n
R5 000
000
R5 000
000
R- R- R- R- External National
Grant:MISA
IDP00
81
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Safety
and
Securi
ty
Develop
ment &
empow
erment
Operational NC085_Secur
ity
Implement
corporate
security facility
in all municipal
buildings
Whole
of the
Municip
ality
Function:
Law
enforceme
nt
Core
Function:
Municipal
buildings,
Communit
y Halls
R
1 900 00
0
R
1 900
000
R -
R - R - R - Internal Fund:Operatio
nal:Revenue:
General
Revenue:Tax
es:Property
Rates:Levies
76
IDP00
82
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Sustai
nable
Huma
n
Settle
ment
Develop
ment &
empow
erment
Capital NC085_Housi
ng
Facilitate
completion of
Housing project
in Skeyfontein
Ward 7 Function:
Sustainabl
e Human
Settlemen
t
Non Core-
Function:
Housing
Administra
tion
R
8 900 00
0
R - R -
R - R - R
8 900
000
External National
Government>
Municipal
Human
Settlement
IDP00
83
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Sustai
nable
Huma
n
Settle
ment
Develop
ment &
empow
erment
Operational NC085_Town
ship
establishment
Facilitate the
implementation
of township
establishment
processes for
Maremane,
Skeifontein
(extension to
2&3), White City
(Industrial)
Boichoko
(Hopecity),&
Jehn Haven
(extension)
Ward
3;4;6 &
7
Function:
Sustainabl
e Human
Settlemen
t
Non Core-
Function:
Housing
Administra
tion
R - R - R -
R - R - R - External Fund:None
Identified
IDP00
84
KPA4:
Municipal
Transform
ation and
Institution
al
Developm
ent
KFA:
Syste
ms
and
Techn
ology
Improve
Commu
nication
Capital NC085
_Communicati
on and Public
Partcipation
Facilitate the
establishment of
a community
radio station
Whole
of the
Municip
ality
Function:
Pulic
Participati
on and
Communi
ciation:
Core
Function:
Customer
Relations
R500
000
R- R -
R5000
00
R - R - External Mining
Companies
77
Managem
ent
IDP00
85
KPA1:
Basic
Service
Delivery
and
Infrastruct
ure
Developm
ent
KFA:
Water
and
Sanita
tion
Infrast
ructur
e
Water
quality
monitor
ed
Capital NC085_Road
s and Storm
water
Business plan
for funding of
Roads and
Storm water
masterplan
Whole
of the
Municip
ality
Function:
Roads
and Storm
water
R50000
00
R- R -
R5000
00
R - R- R- Mining
Companies
IDP00
86
KPA1:
Basic
Service
delivery
and
Infrastruct
ure
Developm
ent
KFA:
Water
and
Sanita
tion
Infrast
ructur
e
Water
quality
monitor
ed
Operational NC085_Maint
enenace_Port
able water
Repair and
cleaning of
storm water
drain channels
Whole
of the
Municip
ality
Function:
Roads
and Storm
water
infrastruct
ure
Core
Function:
Water
provision
maintenan
ce
services
R- R- R- R- R- R- Internal Fund:Capital>
Transfer from
Operational
Revenue
78
IDP00
87
KPA1:
Basic
Service
delivery
and
Infrastruct
ure
Developm
ent
KFA:
Water
and
Sanita
tion
Infrast
ructur
e
Water
quality
monitor
ed
Capital NC085_Basic
Service
Delivery and
Infrastructure_
Water
Monitor and
report on the
collaboration
construction of
Newtown water
tower
Ward 5 Function:
Water
Infrastruct
ure
Core
Function:
Distributio
n Services
R12 000
000
R- R- R- R12 0
00
000
R- External National
Government:
MIG
Mining
Companies
IDP00
88
KPA1:
Basic
Service
delivery
and
Infrastruct
ure
Developm
ent
KFA:
Water
and
Sanita
tion
Infrast
ructur
e
Water
quality
monitor
ed
Capital NC085_Maint
enenance
Portable water
Replace the
pump and pipe
connection at
Newtown Tower
Ward 5 Function:
Water
Infrastruct
ure
Core
Function:
Water
provision
maintenan
ce
services
R5 000
000
R- R- R- R5
000
000
R- External National
Government:
MIG
Mining
Companies
IDP00
89
KPA1:
Basic
Service
delivery
and
Infrastruct
ure
Developm
ent
KFA:
Water
and
Sanita
tion
Infrast
ructur
e
Water
quality
monitor
ed
Capital NC085_Maint
enance_Wate
r
Infrastructure
Repair of old
water
infrastructure in
Boichoko,Town
and Stasie
Ward
4;5 & 6
Function:
Water
Infrastruct
ure
Core
Function:
Water
provision
maintenan
ce
services
R- R- R- R- R- R- External National
Government:
MIG
Mining and
Solar
Companies
79
IDP00
90
KPA1:
Basic
Service
delivery
and
Infrastruct
ure
Developm
ent
KFA:
Gover
nance
Struct
ures
Extend
Road
network
Capital NC085_Maint
enenace_Roa
ds
Improve 12
roads and storm
water
infrastructure
Whole
of the
Municip
ality
Function: Roads
and storm
water
infrastruct
ure
Core
Function:
Roads
R- R- R- R- R- R- Internal Fund:Capital>
Transfer from
Operational
Revenue
IDP00
91
KPA1:
Basic
Service
delivery
and
Infrastruct
ure
Developm
ent
KFA:
Gover
nance
Struct
ures
Extend
Road
network
Operational NC085_Maint
enenace_Roa
ds
Implement curb
and sidewalks
repairs
Whole
of the
Municip
ality
Function:
Roads
maitenanc
e
R10401 R- R- R- R1040
1
R- Internal Fund:Capital>
Transfer from
Operational
Revenue
IDP00
92
KPA1:
Basic
Service
delivery
and
Infrastruct
ure
Developm
ent
KFA:
Parks
and
open
space
Develop
ment
and
empow
erment
Operational NC085_Solid
waste
Convert 15
illegal dumping
areas/sites into
Recreational
Facilities
Whole
of the
Municip
ality
Function:
Parks and
open
spaces
Core
Function:
Solid
waste
disposal
R2000
000
R- R- R- R2000
000
R- Internal Fund:Capital>
Transfer from
Operational
Revenue
80
IDP00
93
KPA1:
Basic
Service
delivery
and
Infrastruct
ure
Developm
ent
KFA:
Parks
and
open
space
Develop
ment
and
empow
erment
Operational NC085_Solid
waste
Implement 210L
of steel refuse
bins to all
residential
areas to reduce
illegal dumping
Whole
of the
Municip
ality
Function:
Waste
Managem
ent
Core
Function:
Solid
waste
disposal
R- R- R- R- R- R- Internal Fund:Capital>
Transfer from
Operational
Revenue
IDP00
94
KPA1:
Basic
Service
delivery
and
Infrastruct
ure
Developm
ent
KFA:
Parks
and
open
space
Develop
ment
and
empow
erment
Operational NC085_Solid
waste
Facilitate and
report on two
(2) community
education and
awareness
campaigns on
waste
management in
order to reduce
and eradicate
illegal dumping
sites
Whole
of the
Municip
ality
Function:
Public
Participati
on and
Communi
cation
Core
Function:
Solid
Waste
managem
ent
R8000
000
R- R- R- R800
000
R- External Mining
companies
IDP00
95
KPA1:
Basic
Service
delivery
and
Infrastruct
ure
Developm
ent
KFA:
Sustai
nable
Huma
n
Settle
ment
Develop
ment
and
empow
erment
Operational NC085_Housi
ng
Implement
Human
Settlement
System
beneficiary
registration
Whole
of the
Municip
ality
Function:
Sustainabl
e Human
Settlemen
t
Core
Function:
Housing
Administra
tion
R80 000 R- R- R- R80
000
R- Internal Fund:Capital>
Transfer from
Operational
Revenue
81
IDP00
96
KPA1:
Basic
Service
delivery
and
Infrastruct
ure
Developm
ent
KFA:
Sustai
nable
Huma
n
Settle
ment
Develop
ment
and
empow
erment
Capital NC085_Housi
ng
Facilitate
completion of
internal
infrastructure
and 120 houses
projects in
Stasie
Ward 6 Function:
Sustainabl
e Human
Settlemen
t
Core
Function:
Housing
Administra
tion
R- R- R- R- R- R- External Private
Company
(Transnet)
IDP00
97
KPA5:
Good
Governan
ce and
Public
Participati
on
KFA:
Gover
nance
Struct
ures
Develop
ment
and
empow
erment
Operational NC085_Stake
holder
partnership
Participate in
the Project
Steering
Committee
meetings
dealing with
Development
projects
affecting Youth;
Women;
Children and
people with
disability.
Whole
of the
Municip
ality
Function:
Inter-
Governme
ntal
Relations
Managem
ent
Core-
Function:
Governan
ce
Support
R13 000
000
R- R- R- R13 0
00
000
R- External Private and
Governmental
stakeholders
IDP00
98
KPA2:
Local
Economic
developm
ent
KFA:
Gover
nance
Struct
ures
Develop
ment
and
empow
erment
Capital NC085_Stake
holder
partnership
Facilitate
projects to
support local
entrepreneurs
Whole
of the
Municip
ality
Function:
Local
Economic
Developm
ent
Core-
Function:
Governan
ce
Support
R3 300
000
R- R- R- R3 30
0 000
R- External National
Government
Mining and
Solar
Companies
82
IDP00
99
KPA2:
Local
Economic
developm
ent
KFA:
Gover
nance
Struct
ures
Develop
ment
and
empow
erment
Capital NC085_Stake
holder
partnership
Facilitate
building of
Youth and
SMME support
centre
Whole
of the
Municip
ality
Function:
Local
Economic
Developm
ent
Core-
Function:
Governan
ce
Support
R13 000
000
R- R- R- R13 0
00
000
R External Mining and
Solar
companies
IDP00
100
KPA2:
Local
Economic
developm
ent
KFA:
Gover
nance
Struct
ures
Develop
ment
and
empow
erment
Capital NC085_Stake
holder
partnership
Facilitate
construction of
Disability centre
Ward 6 Function:
Special
Programm
es
Core-
Function:
Social
Developm
ent
R13 000
000
R- R- R- R R External Mining and
Solar
Companies
NDA
IDP00
101
KPA2:
Local
Economic
developm
ent
KFA:
Gover
nance
Struct
ures
Develop
ment
and
empow
erment
Capital NC085_LED
& Tourism
Facilitate
implementation
of the Greening
project
Whole
of the
Municip
ality
Function:
Environm
ental
Managem
ent
Core-
Function:
LED &
Tourism
R15 000
000
R- R- R- R15 0
00
000
R- External National
Government
83
IDP00
102
KPA2:
Local
Economic
developm
ent
KFA:
Gover
nance
Struct
ures
Develop
ment
and
empow
erment
Capital NC085_LED
& Tourism
Facilitate
implementation
of construction
of the
Multipurpose
centre
Whole
of the
Municip
ality
Function:
Local
Economic
Developm
ent
Core-
Function:
Land use
and
spatial
planning
R150 00
0 000
R- R- R- R150
000
000
R- External Mining
companies
IDP00
103
KPA2:
Local
Economic
developm
ent
KFA:
Gover
nance
Struct
ures
Develop
ment
and
empow
erment
Capital NC085_Licen
sing and
Regulation
Feasibility
report and
scope for
Postmasburg
airport upgrade
Ward 5
& 7
Function:
Local
Economic
Developm
ent
Core-
Function:
Land use
and
spatial
planning
R- R- R- R- R- R- External Mining
Companies
IDP00
104
KPA4:
Municipal
Transform
ation and
Institution
al
Developm
ent
KFA:
Gover
nance
Struct
ures
Develop
ment
and
empow
erment
Capital NC085_Munic
ipal Buildings
and
Properties
Implement bio-
matrix time and
attendance
system
Whole
of the
Municip
ality
Function:
Municipal
Facilities
Core-
Function:
HR
Administra
tion,OHS
&
Employee
wellness
R150
000
R- R- R- R150
000
R- Internal Fund:Capital>
Transfer from
Operational
Revenue
84
IDP00
105
KPA4:
Municipal
Transform
ation and
Institution
al
Developm
ent
KFA:
Gover
nance
Struct
ures
Develop
ment
and
empow
erment
Operational NC085_HR
Admin.: -
Implementatio
n of TASK
System
Completion and
implementation
of TASK Job
Evaluation
Whole
of the
Municip
ality
Function:
Human
Capital
Developm
ent
Core-
Function:
R- R- R- R- R- R- Internal Fund:Capital>
Transfer from
Operational
Revenue
IDP00
106
KPA4:
Municipal
Transform
ation and
Institution
al
Developm
ent
KFA:
Gover
nance
Struct
ures
Develop
ment
and
empow
erment
Operational NC085_HR
Admin,OHS
and Employee
Wellness
Implement and
review WSP
Whole
of the
Municip
ality
Function:
Skills
Developm
ent
Core-
Function:
R- R- R- R- R- R- Internal Fund:Capital>
Transfer from
Operational
Revenue
IDP00
107
KPA4:
Municipal
Transform
ation and
Institution
al
Developm
ent
KFA:
Gover
nance
Struct
ures
Develop
ment
and
empow
erment
Operational NC085_HR
Admin,OHS
and Employee
Wellness
Implement HR
Development
plan
Whole
of the
Municip
ality
Function:
Human
Capital
Developm
ent
Core-
Function:
R- R- R- R- R- R- Internal Fund:Capital>
Transfer from
Operational
Revenue
IDP00
108
KPA5:
Good
Governan
ce and
Public
Participati
on
KFA:
Gover
nance
Struct
ures
Develop
ment
and
empow
erment
Operational NC085_Stake
holder
partnership
Facilitate
program to
support for
Early Child
Development
within the TLM
Area
All
Wards
Function:
Special
Programm
es
R2000
000
R- R- R- R200
000
R- External None
85
IDP00
109
KPA5:
Good
Governan
ce and
Public
Participati
on
KFA:
Gover
nance
Struct
ures
Develop
ment
and
empow
erment
Operational NC085_Stake
holder
partnership
Facilitate and
Launching of
Senior Citizens
Care & Support
Programme
All
Wards
Function:
Special
Programm
es
R320
000
R- R- R- R320
000
R- External None
IDP00
110
KPA5:
Good
Governan
ce and
Public
Participati
on
KFA:
Gover
nance
Struct
ures
Develop
ment
and
empow
erment
Operational NC085_Stake
holder
partnership
Facilitate the
establishment of
Moral
Regeneration
and Faith Based
Organisations to
implement the
following:
Churches,
Schools &
Community
Survey
launching
All
Wards
Function:
Special
Programm
es
R60 000 R- R- R- R60
000
R- External None
IDP00
111
KPA5:
Good
Governan
ce and
Public
Participati
on
KFA:
Gover
nance
Struct
ures
Develop
ment
and
empow
erment
Operational NC085_Stake
holder
partnership
Facilitate the
integration of
CDW’s
performance
with the
municipal Ward
Committee
system
Whole
of the
Municip
ality
Function:
Inter-
Governme
ntal
Relations
R150
000
R- R- R- R150
000
R- Internal Fund:Capital>
Transfer from
Operational
Revenue
86
IDP00
112
KPA5:
Good
Governan
ce and
Public
Participati
on
KFA:
Gover
nance
Struct
ures
Develop
ment
and
empow
erment
Operational NC085_Stake
holder
partnership
Facilitate Bi-
Monthly
Stakeholders
meetings
Whole
of the
Municip
ality
Function:
Inter-
Governme
ntal
Relations
Core-
Function:
Governan
ce
Support
R- R- R- R- R- R- Internal None
IDP00
113
KPA5:
Good
Governan
ce and
Public
Participati
on
KFA:
Gover
nance
Struct
ures
Develop
ment
and
empow
erment
Operational NC085_Stake
holder
partnership
Ensure that all
CSI
interventions
are aligned to
government
events calendar
and priorities
Whole
of the
Municip
ality
Function:
Inter-
Governme
ntal
Relations
Core-
Function:
Governan
ce
Support
R- R- R- R- R- R- External None
IDP00
114
KPA2:
Local
Economic
Developm
ent
KFA:
Gover
nance
Struct
ures
Growth Operational NC085_By-
Law
enforcement
Establish public
private
partnership to
operate the
municipal
animal pond by
June 2021
Whole
of the
Municip
ality
Function:
By-
Laws,Poli
cies and
Procedure
s
Core-
Function:
Traffic and
Law
enforceme
nt
services
R- R- R- R- R- R- External None
CHAPTER 5: MUNICIPAL FINANCIAL PLANING
This chapter provides an overview of the financial viability of the municipality as well as the applied
process for implementation. The section also includes multi-year budgets with a 3-year commitment and
a strategy for municipal revenue generation.
Financial Viability
An important factor considered by investors in relocating to or investing in an area, would be the ability
of the local authority to adequately provide services. In addition, the following aspects of (local municipal)
governance would also determine investor sentiment: (a) financial discipline, (b) affordable cost reflective
tariffs structure, (c) compliance with statutory requirements, (d) timely preparation and
production of financial statements, (e) adherence to generally accepted accounting practices and (f)
unqualified audit reports.
Revenue Generation Interventions
The municipality will strive to increase its revenue by implementing the following strategies:
Strategy 1: Implement the credit control and debt management policy.
Strategy 2: Develop a Local Economic Development policy to facilitate employment opportunities which
will enable families to start paying for services. Strategy 3: Create a climate for investment in the area.
Strategy 4: To ensure that the figures in respect of indigents are correct so as to qualify for an increased
amount from national government.
Strategy 5: The installation of prepaid meters is essential in securing future payment for services by
residents.
Strategy 6: Enlarge the revenue base by ensuring that all properties are correctly zoned.
Expenditure Management Interventions
The municipality will strive to curb its expenditure by implementing the following strategies:
• Strategy 1: Reduce expenditure on non-core functions.
• Strategy 2: Limit operating and capital expenditure to essential items.
• Strategy 3: Investigate and limit water and electricity losses.
• Strategy 4: Limit employee related expenditure. Strategy 5: Reduce interest and redemption
expenditure by using borrowing as a last resort.
The application of sound financial management principles for the compilation of the 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
Municipal Budget and Reporting Regulations, as well as various circulars issued by National Treasury,
provides the guidance for budget preparation by local government.
The main items identified can be summarised as follows:
• Improved service delivery;
• Underdeveloped areas;
• Impoverished communities;
• Co-operative governance;
• Unfunded mandates, core functions service delivery agents;
• Land availability for e.g. economic development;
• Land availability for establishing tip-sites;
• Alternative service delivery options;
• Obtaining a “clean audit” inclusive of performance management;
• Delegation- and procedure manuals;
• Risk management;
• Improved planning and beyond 5 years;
88
• High crime rate;
• Service delivery backlogs;
• Improved maintenance programs;
• Local economic development facilitation;
• Adequacy of municipal reserves and financial sustainability;
• Curtail electricity losses;
• Tourism initiatives; and
• Improved public participation.
National Treasury’s MFMA Circulars No. 70, 72, 74, 75, 78, 79,85 and 86 were mainly used to guide the
compilation of the 2017/18 MTREF. Some of the key challenges faced by the municipality when
compiling the budget were:
• The on-going difficulties in the national and local economy;
• Aging roads, asbestos pipes, the capacity of the sewer work and electricity infrastructure;
• The need to prioritise projects and expenditure within the existing resource envelope;
• The increased cost of electricity (due to tariff increases from Eskom), which is placing
upward pressure on service tariffs to residents. Similarly the effect of the water tariffs, as
determined by the Sedibeng Water Board, on consumers. Continuous high tariff increases
are not sustainable - as there will be a point where services will no-longer be affordable;
• Wage increases for municipal staff that continue to exceed consumer inflation, as well as the
need to fill critical vacancies;
• Affordability of capital projects and the resultant operational costs associated with new
infrastructure projects; and
The municipality is in an unhealthy financial position; however, it needs to at least stabilise and further
strife to continuously better its financial position, coupled with acceptable levels of service delivery at
affordable tariffs. The retention of sufficient cash-backed reserves is critical for the long-term
sustainability of the municipality, and to this end the municipality is not achieving this objective. The
Capital Replacement Reserve needs to be at a level where all capital spending should be funded from.
Currently there are no funds in the CRR (Capital Replacement Reserve) to fund any capital projects.
The following budget principles and guidelines directly informed the compilation of the 2020/21 MTREF: • The 2020/21 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 2020/21 annual budget;
• 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
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;
• The budget must be spent in full, and all grants should be utilised in full;
89
In view of the aforementioned, the following table is a consolidated overview of the proposed 2020/21 Medium-term Revenue and Expenditure Framework: REVENUE
Total operating revenue has decreased from R274,258 thousand to R 245,004 million,
decrease of R29,254 million rand or 11% for the 2020/21 financial year when compared to
the 2019/120 Adjustments Budget, for the two outer years revenue will be increased by 4.6%.
The supplementary valuation roll was implemented during 2019. 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.
Revenue has been decreased by 11%due to the following reasons
• Decrease in sale of available land (stands).
• Decrease in property rates due to the miscalculation on property valuation roll
BREAKDOWN OF GRANTS MTREF 2021
Operating grants and transfers totals R52, 529 million (8% of MIG to be declared
operational) for 2020/21 financial year and increase to R 57,058 and R63, 423 million
respectively for the two outer years.
Capital grants and transfers amounts to R40,892 for 2021 financial year million and
R26,783,R30,020 million for the two outer years respectively .
Grants usually fluctuates upwards or downwards from year-to-year, as the revenue recognition
for such grants depends only on compliance with any conditions attached to such grants and it
is also dependant on the funding available from the other spheres of Government.
The unconditional Equitable Share Grant, however, is a grant growing annually according to a
formula determined nationally and such formula is applicable to all local authorities on an equal
basis. One main factor is indigents as the grant supposed to cater for them
NC085 Tsantsabane - Table A4 Budgeted Financial Performance (revenue and expenditure)
Description Ref 2016/17 2017/18 2018/19
R thousand 1Audited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Pre-audit
outcome
Budget Year
2020/21
Budget Year
+1 2021/22
Budget Year
+2 2022/23
Revenue By Source
Property rates 2 29,025 27,652 27,421 80,000 80,000 80,000 80,000 62,109 64,966 67,955
Serv ice charges - electricity rev enue 2 34,799 39,694 47,408 57,440 57,440 57,440 57,440 61,879 64,725 67,703
Serv ice charges - w ater rev enue 2 17,210 15,795 14,790 19,765 19,765 19,765 19,765 21,511 22,501 23,536
Serv ice charges - sanitation rev enue 2 26,662 19,755 21,839 21,246 25,114 25,114 25,114 22,793 24,799 25,940
Serv ice charges - refuse rev enue 2 11,222 10,920 13,391 11,305 15,400 15,400 15,400 14,873 16,312 17,063
Rental of facilities and equipment 419 492 428 258 428 428 428 593 620 649
Interest earned - ex ternal inv estments 1,385 924 1,131 693 693 693 693 724 757 792
Interest earned - outstanding debtors – – – – – – – – –
Div idends receiv ed – – – – – – – – –
Fines, penalties and forfeits 574 332 416 631 631 631 631 662 692 724
Licences and permits 1,801 1,814 1,287 547 547 547 547 569 596 623
Agency serv ices – – – – – – – – – –
Transfers and subsidies 37,058 37,670 42,244 48,090 48,090 48,090 48,090 52,529 57,058 63,423
Other rev enue 2 124 1,626 1,275 422 1,150 1,255 1,255 2,746 2,872 3,004
Gains on disposal of PPE – 950 – 25,000 25,000 25,000 25,000 7,104 7,431 7,773
Total Revenue (excluding capital transfers
and contributions)
160,280 157,624 171,630 265,398 274,258 274,363 274,363 248,093 263,330 279,184
2020/21 Medium Term Revenue &
Expenditure FrameworkCurrent Year 2019/20
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In line with the formats prescribed by the Municipal Budget and Reporting Regulations, capital
transfers and contributions are excluded from the operating statement, as inclusion of these
revenue sources would distort the calculation of the operating surplus/deficit
Grants table illustrated below
NC085 Tsantsabane - Supporting Table SA18 Transfers and grant receipts
Description Ref 2016/17 2017/18 2018/19
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Budget Year
2020/21
Budget Year
+1 2021/22
Budget Year
+2 2022/23
RECEIPTS: 1, 2
Operating Transfers and Grants
National Government: – – – – – – 51,134 55,599 61,897
Local Gov ernment Equitable Share 42,497 46,483 50,448
EPWP Incentiv e 1,000 – –
Integrated National Electrification Programme 1,800 3,000 5,576
Finance Management 3,000 3,300 3,500
Municipal Infrastructure Grant 1,237 1,316 1,373
Municipal Sy stems Improv ement Grant 1,600 1,500 1,000
Provincial Government: – – – – – – 1,395 1,459 1,526
Prov incial Departmental Agencies 1,395 1,459 1,526
National Departmental Agencies – – –
District Municipality: – – – – – – – – –
[insert description]
Other grant providers: – – – – – – – – 0
[insert description] – – 0
Total Operating Transfers and Grants 5 – – – – – – 52,529 57,058 63,423
Capital Transfers and Grants
National Government: – – – – – – 30,440 18,131 21,368
Municipal Infrastructure Grant 14,229 18,131 21,368
Regional Bulk Infrastructure Grant – – 0
Water Serv ices Infrastructure Grant 16,211 – 0
Other capital transfers/grants [insert desc]
Provincial Government: – – – – – – – – –
Other capital transfers/grants [insert
description]
District Municipality: – – – – – – – – –
[insert description]
Other grant providers: – – – – – – 8,652 8,652 8,652
Other Transfers Private Enterprises 8,652 8,652 8,652
Total Capital Transfers and Grants 5 – – – – – – 39,092 26,783 30,020
TOTAL RECEIPTS OF TRANSFERS & GRANTS – – – – – – 91,621 83,841 93,443
Current Year 2019/202020/21 Medium Term Revenue &
Expenditure Framework
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EXPENDITURE
Total operating expenditure for the 2020/21 financial year has been estimated at R247, 546 million and translates into a budgeted surplus of R546 thousand before capital transfers. When compared to the 2019/20 adjustments Budget, operational expenditure has increased by 13% in the 20120/21 budget and increases by 0,05% for each of the respective outer years of the MTREF. The operating surplus before capital grant transfers continues for the first outer year decreased to R2,896 million and surplus of R5,129 million for the second outer year.
• Employee related cost increased by 6.25% as per agreement
• Few of critical post also included
• Overtime curbed to be The cost associated with the remuneration of councillors is determined by the Minister of Co-operative Governance and Traditional Affairs in accordance with the Remuneration of Public Office Bearers Act, 1998 (Act 20 of 1998). The most recent proclamation in this regard has been taken into account in compiling the Municipality’s budget. Provision for depreciation and asset impairment has been informed by the Municipality’s Asset Management Policy. Depreciation is widely considered a proxy for the measurement of the rate of asset consumption. Budget appropriations in this regard total R18,682 million for the 2020/21 financial year and equates to 7.50% per cent of the total operating expenditure. Finance charges consist primarily of the repayment of interest on finance/operating leases (cost of capital). Finance charges make up just more than 1 per cent of operating expenditure. Bulk purchases are directly informed by the purchase of electricity from Eskom and Sedibeng water. The annual price increases have been factored into the budget appropriations and directly inform the revenue provisions. The expenditures include distribution losses. Electricity bulk purchases represents 25.90% per cent (2020/21) of expenditure and increase to 25.79 per cent (2021/22) and 25.59 per cent (2022/23) in the outer years. National Treasury is introducing a new Chart of Accounts and additional expenditure line-items in the budget. One of these line-items is “Other materials”. Other materials comprise of amongst others the purchase of fuel, diesel, materials for maintenance, cleaning materials and chemicals. This group of expenditure has been identified in order to measure sustainability of the Municipality’s infrastructure. mSCOA was supposed to be implemented by 30 June 2020. There is still challenges at the Municipality that needs to be solve before 30 June 2020.
Expenditure By Type
Employ ee related costs 2 69,751 69,701 72,891 92,351 69,190 69,190 69,190 88,408 93,933 99,804
Remuneration of councillors 4,475 5,270 5,517 5,756 5,756 5,756 5,756 5,807 6,116 6,498
Debt impairment 3 46,401 18,047 37,447 30,000 30,000 30,000 30,000 31,350 32,792 34,301
Depreciation & asset impairment 2 31,986 30,828 31,096 17,877 17,877 17,877 17,877 18,682 19,541 20,440
Finance charges 6,840 – 16,271 7,365 2,365 2,365 2,365 2,471 2,585 2,704
Bulk purchases 2 38,599 52,227 60,336 64,338 60,338 60,338 60,338 64,109 67,058 70,142
Other materials 8 – 8,737 2,019 2,630 2,630 2,630 2,630 2,749 2,875 3,007
Contracted serv ices – 15,280 22,569 10,150 10,150 10,150 10,150 16,079 16,819 17,593
Transfers and subsidies – – – – – – – – – –
Other ex penditure 4, 5 35,152 36,729 20,179 20,910 20,910 20,910 20,910 17,892 18,715 19,576
Loss on disposal of PPE 387 4,305 27,050 – – – – – – –
Total Expenditure 233,591 241,124 295,375 251,378 219,217 219,217 219,217 247,546 260,434 274,065
Surplus/(Deficit) (73,311) (83,500) (123,745) 14,020 55,041 55,146 55,146 546 2,896 5,120
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Contracted services have been identified as a cost saving area for the Municipality. Management will in the budget year further investigate projects which can be used for contracted services as an extension of the Extended Public Works Program. The provision of debt impairment was determined based on the Debt Write-off Policy of the Municipality. For the 2020/21 financial year this amount equates to R31,350 million and escalates to R32,792 million by (2021/22) and R34,301 million by (2022/23). While this expenditure is considered to be a non-cash flow item, it informed the total cost associated with rendering the services of the municipality, as well as the municipality’s realistically anticipated revenues. Other expenditure comprises of various line items relating to the daily operations of the municipality, but also operating grant expenditures. This group of expenditure has also been identified as an area in which cost savings and efficiencies can be achieved. These expenditure items are listed below:
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Employee related cost breakdown
CAPITAL BUDGET MTREF 2021
Capital budget amounts to R50 515 million for 2020/21 financial year which is more than 100% when compared to the 2019/20 Adjustment Budget. The capital programme further increases to R36 849 million and R40 548 million for the two outer years respectively. A substantial portion of the capital budget will be funded from grants (R40 892) and the rest is
EXPENDITURE ITEMS:
Employee related costs
Basic Salaries and Wages 2 38,347 39,869 41,587 51,202 33,041 33,041 33,041 50,160 53,295 56,626
Pension and UIF Contributions 5,869 6,536 7,023 8,976 8,976 8,976 8,976 8,382 8,905 9,462
Medical Aid Contributions 390 1,598 1,195 3,658 3,658 3,658 3,658 3,754 3,989 4,238
Ov ertime 7,789 8,041 9,042 11,032 6,032 6,032 6,032 7,243 7,696 8,177
Performance Bonus 3,386 – 3,957 3,957 3,957 3,957 – – –
Motor Vehicle Allow ance 4,807 5,084 4,129 5,075 5,075 5,075 5,075 5,261 5,589 5,939
Cellphone Allow ance – – 213 213 213 213 189 200 213
Housing Allow ances 2,664 2,635 2,360 3,015 3,015 3,015 3,015 2,748 2,920 3,102
Other benefits and allow ances 4,242 1,172 6,678 4,913 4,913 4,913 4,913 10,401 11,051 11,741
Pay ments in lieu of leav e 2,935 (349) 875 – – – – – – –
Long serv ice aw ards 347 – – 311 311 311 311 271 288 306
Post-retirement benefit obligations 4 2,361 1,728 – – – – – – – –
sub-total 5 69,751 69,701 72,891 92,351 69,190 69,190 69,190 88,408 93,933 99,804
Less: Employees costs capitalised to PPE – – – – – – – – – –
Total Employee related costs 1 69,751 69,701 72,891 92,351 69,190 69,190 69,190 88,408 93,933 99,804
Capital Expenditure - Functional
Governance and administration 560 197,999 – 500 150 150 150 2,067 2,162 2,262
Ex ecutiv e and council 96,371 – – – – – 200 209 219
Finance and administration 560 101,628 – 500 150 150 150 1,867 1,953 2,043
Internal audit – – – – – – – –
Community and public safety – 17,172 – – – – – 1,556 1,628 1,702
Community and social serv ices 2,444 – – – – – 1,391 1,455 1,522
Sport and recreation 14,728 – – – – – 165 173 181
Public safety – – – – – – – –
Housing – – – – – – – –
Health – – – – – – – – – –
Economic and environmental services 10,155 267,500 – – – – – – – –
Planning and dev elopment – – – – – – – –
Road transport 10,155 267,500 – – – – – – – –
Env ironmental protection – – – – – – – –
Trading services 11,075 314,564 – 14,299 14,299 14,299 14,299 46,892 33,059 36,584
Energy sources – 92,405 – – – – – 6,000 6,276 6,565
Water management 4,684 128,534 – 14,299 14,299 14,299 14,299 40,892 26,783 30,020
Waste w ater management 6,391 92,056 – – – – – – – –
Waste management – 1,569 – – – – – – – –
Other – 397 – – – – – – – –
Total Capital Expenditure - Functional 3 21,790 797,632 – 14,799 14,449 14,449 14,449 50,515 36,849 40,548
Funded by:
National Gov ernment 21,230 797,632 – 14,299 14,299 14,299 14,299 32,240 18,131 21,368
Prov incial Gov ernment – – – – – – – – – –
District Municipality – – – – – – – – –
Other transfers and grants – – – – – – – 8,652 8,652 8,652
Transfers recognised - capital 4 21,230 797,632 – 14,299 14,299 14,299 14,299 40,892 26,783 30,020
Borrowing 6 – – – – – – – – – –
Internally generated funds – – – 500 150 150 150 9,623 10,066 10,529
Total Capital Funding 7 21,230 797,632 – 14,799 14,449 14,449 14,449 50,515 36,849 40,548
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expected to be own funding which part of it will be sale of stands for all tools of trade and printing solution electricity service charge to fund all electrical projects
Operating Revenue Framework
For Tsantsabane Municipality to continue 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 Tsantsabane municipality. The reality is that we are faced
with development backlogs and poverty. The expenditure required to address these challenges and 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.
The municipality’s revenue strategy is built around the following key components:
• A financially sustainable municipality;
• National Treasury’s guidelines and macroeconomic policy;
• Limited growth in the Municipality and continued economic development;
• Efficient revenue management, which aims to ensure a 90,0 per cent annual collection rate for
property rates and other key service charges. This percentage is high compared to past history,
but is being calculated conservatively due to the signs of financial stress currently being
experienced;
• 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;
• Determining the tariff escalation rate by establishing/calculating the revenue requirement of each
service;
• The municipality’s Property Rates Policy approved in terms of the Municipal Property Rates Act,
2004 (Act 6 of 2004) (MPRA);
• Increase ability to extend new services and recover costs;
• The municipality’s Indigent Policy and rendering of free basic services; and
• Tariff policies of the Municipality.
The inflation forecasts for the MTREF period is on average 6,1% per annum. The municipality’s aim is to
not exceed inflation in its annual tariff adjustments but external factors such as the Eskom increases
and which are beyond the control of the municipality hampers this goal. Tariffs are not cost reflected and needs to be cost reflected. The tariff increase will be more than the average inflation forecast.
In order to ensure all revenues are raised and recovered and further that all ratepayers are being treated
equitably, the municipality identified certain areas of concern and is busy implementing measures to
address these problem areas.
Strategy
Maintain and improve on debt collection
Secure new sources of income
Counter the potential loss in electricity/water income as well as line-losses
Ensure an accurate and well-maintained income database
Secure more external funding and government grants for soft services including long term funding for
operating expenses
Monitor the financial health of the Municipality and cash-back all reserves
Tariffs
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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.
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 6.1 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 bulk tariffs are far beyond the mentioned inflation target. Given that these tariff increases are determined by an external agency, the impact it has on the municipality’s electricity tariffs are largely outside the control of the Municipality. Discounting the impact of these price increases in lower consumer tariffs will erode the Municipality’s future financial position and viability. The municipality budgets for the non-payment of accounts based on past experience of recovery rates. The municipality applies it Credit Control Policy but there are always situations where there are defaults on payment. Past experience indicates that contribution for bad debt over the revenue for rates, service charges and rent of facilities on credit percentage should not be more than 10 per cent, however, a cautionary approach is taken in this budget due to the signs of economic stress being experienced by the community. 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. Within this framework the Municipality has undertaken the tariff setting process relating to service charges as follows.
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) Tsantsabane
Municipality increase the value to R30 000;
• 100 per cent rebate will be granted to registered indigents in terms of the Indigent
Policy to a maximum valuation of R30 000;
• The limit for indigent households is twice the amount of government social pensions.
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The municipality investigates a tariff structure consistent with operational requirements but also to ensure that the ratepayers are not over-burdened. The categories of rateable properties for purposes of levying rates and the proposed rates for the 2020/21 financial year will be based on a general 0.0 per cent increase from 1 July 2020. The supplementary valuation roll will increase the revenue (property rates). The proposed tariffs for 2020/21 are as follows: Residential Properties R0.007494/Rvalue Business Properties R0.011236/Rvalue Mining Properties R0.056770/Rvalue Agricultural Properties R0.000449/R value
Sale of Water and Sanitation and the 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
• Water tariffs are designed to encourage efficient and sustainable consumption.
The municipality obtains water from Sedibeng at a cost of R9.18/kl. (Vaal river water) (2020/21). The ground water tariff is R1.96/kl. Furthermore, the water tariffs to the consumers are not cost reflective and as such the tariffs need to be adjusted substantially from the 2017/18, 2018/19 and 2019/20 financial years. The proposed tariffs for the 2020/21 financial year are as follows: WATER Currently, Tsantsabane municipality is experiencing a high volume of water losess and cannot determine what the water losses are. The municipality need urgently to measure the losses. The outstanding water account form Sedibeng amounts to more than R54 Million and needs urgent attention. If the water losses are minimised, the monthly bill of Sedibeng will decrease substantially. The municipality needs to ring-fence the water supply and determine what the actual cost per kl should be. Tsantsabane Municipality need to make use of their own boreholes to minimize the usage of Sedibeng water.The municipality need to be less dependent on Sedibeng water in 2020/21 financial year.
The municipality needs continuously to explore ways to limit the water losses to an acceptable level. There will always be water line losses due to burst pipes and as repairs thereof requires flushing of systems before being distributed again. However any losses above 13% is considered excessive by the Auditor-General’s office and regarded as fruitless expenditure. The municipality should continue to monitor reasons for the excessive losses and to improve systems to limit the water losses to below 13%. Increase of 4.50% on water tariffs was calculated for water and the impact is as follows
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Sanitation and refuse removal Increase of 5.02% for sanitation and 6.62% for refuse removal
Waste Removal and Impact of Tariff Increases
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 the expenditure are the general expenditure (rehabilitation cost) and the maintenance of the landfill site, diesel of vehicles, increases in the cost of remuneration of officials. In addition, the cost of new landfill sites, the effect of depreciation and rehabilitation on
these landfill sites all plays an important role in the projected losses or surpluses. It is recommended that a comprehensive investigation into the cost structure of solid waste function be undertaken, and that this include investigating alternative service delivery models. The outcomes of this investigation should be incorporated into the next planning cycle.
Sale of Electricity and Impact of Tariff Increases
NERSA has announced the revised bulk electricity pricing structure. An 6.80 per cent increase in the Eskom bulk electricity tariff to municipalities will be effective from 1 July 2020. Considering the Eskom increases, the consumer tariff had to be increased by 1.88 per cent to offset the additional bulk purchase cost from 1 July 2020. 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. ELECTRICITY TARIFFS & CHARGES
The tariffs will be included in the budget after NERSA approved the tariffs.
Electricity is regarded as a trading account which should make a profit, although NERSA monitors and limits this profit to an estimate of 10%. The municipality doesn’t make a profit on electricity for the past years due to high volume of electricity losses. The details of actual electricity losses are in the 2018/19 Annual Financial Statements and Annual Report Electricity line losses are not continuously monitored. It can represent a significant financial loss for the municipality. In general electricity line losses of 10% is being regarded as “acceptable” in the industry and Tsantsabane is well above that norm. Tsantsabane needs to take action and monitor the losses. Comparison between current electricity charges and increases
It should further be noted that NERSA has advised that a stepped tariff structure must be used. 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). A stepped tariff structure has been implemented as from 1 July 2019.
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The following table compares current and proposed amounts payable from 1 July 2020:
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Operating Expenditure Framework
The Municipality’s expenditure framework for the 2020/21 budget and MTREF is informed by the following:
• Guidance provided by National Treasury in Circular 66, 67, 70, 72, 74, 75, 78, 79, 85 and 86 until 91;
• Balanced budget constraint (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;
• The capital programme is aligned to the asset renewal strategy and backlog eradication plan;
• Operational gains and efficiencies will be directed to funding the capital budget and other core services; and
• Limitation on tariff increases.
Main operational expenditure categories for the 2020/21 financial year
Priority given to repairs and maintenance
Aligned to the priority being given to preserving and maintaining the Municipality’s current infrastructure, the 2020/21 budget and MTREF provide for extensive growth in the area of asset maintenance, as informed by the asset management policy. Council needs to adopt a repairs and maintenance plan for the Municipality. In terms of the Municipal Budget and Reporting Regulations, operational repairs and maintenance is not considered a direct expenditure driver but an outcome of certain other expenditures, such as remuneration, purchases of materials and contracted services. Considering these cost drivers, National Treasury requires municipalities to adapt their costing systems to reflect these costs as Repairs and Maintenance. The municipality financial systems, as yet, cannot provide for this request and it will be implemented when mSCOA is fully implemented. During the compilation of the 2020/21 MTREF operational repairs and maintenance was identified as a strategic imperative owing to the aging of the Municipality’s infrastructure and historic deferred maintenance. R6 million rand is been incorporated into 2021 budget for repairs and upgrading of electrical assets. Free Basic Services: Basic Social Services Package
The social package assists households that are poor or face other circumstances that limit their ability to pay for services. To receive these free services the households are required to register in terms of the Municipality’s Indigent Policy. The target is to register all indigent households during the 2019/20 financial year, a process reviewed annually. The cost of the social package of the registered indigent households is financed by the municipality self and largely by utilising the municipality’s unconditional equitable share, allocated in terms of the Constitution to local government, and received in terms of the annual Division of Revenue Act. The indigent subsidy as a result of free basic services totals R12,127
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million (2020/21) in the budget year and increasing to R12,685 million and R13,268 million in the two outer years. . BUDGET CHALLENGES
Tsantsabane Municipality experience serious cash flow problems and the allocation to the capital program is totally insufficient for all the expansions’ that needs to take place. The second phase of the sewer treatment plant needs to be upgraded. The old infrastructure (asbestos pipes) needs to be replaced. The water storage capacity needs to be upgraded. Additional water sources needs to explore. The main roads need to be upgraded. Office space is a serious problem and additional offices need to be erected. The SDF (spatial development framework) has been approved and however requires review to align with the SPLUMA legislation and the approved LUMS. The bulk services fees increase from R57 500.00 per stand to R62 100.00 per stand. Council must not allow any development to take place if there is no service level agreement in place. There is no allocation to roads in 2020/21 budget yet all roads are not in good condition, all MIG funds are utilised to fund water reservoir. The municipality is experiencing difficulties with regards to the landfill site. The landfill site is not licenced/register and the property belong to the National Government. The municipality needs to engage with the Provincial Government to transfer the property to the Municipality and licence the landfill site. This not only leaves the municipality with harming the environment, but also the prospect of incurring huge fines and is it necessary to ensure the municipality complies with all requirements. There is no budget provides for the MTREF to establishment a new landfill site. Kolomela and Assmang needs to help the Municipality with the establishment of a licenced landfill site. The municipality need proper equipment (front-end-loader) and personnel to operate the landfill site.
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 2020/21 budget and MTREF to be approved by the Council. Each table is accompanied by explanatory notes on the facing page.)
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Table A1 - Budgeted Summary
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Description 2016/17 2017/18 2018/19
R thousandsAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Pre-audit
outcome
Budget Year
2020/21
Budget Year
+1 2021/22
Budget Year
+2 2022/23
Financial Performance
Property rates 29,025 27,652 27,421 80,000 80,000 80,000 – 62,109 64,966 67,955
Serv ice charges 89,893 86,288 97,428 112,849 120,812 120,812 – 121,056 128,338 134,241
Inv estment rev enue 1,385 924 1,131 693 693 693 – 724 757 792
Transfers recognised - operational 43,063 37,670 42,244 96,181 96,181 96,181 – 52,529 57,058 63,423
Other ow n rev enue 2,918 5,214 3,407 26,859 27,757 27,757 – 11,674 12,211 12,773
Total Revenue (excluding capital transfers and
contributions)
166,284 157,749 171,631 316,581 325,442 325,442 – 248,093 263,330 279,184
Employ ee costs 69,751 69,810 72,891 92,351 80,028 80,028 – 88,408 93,933 99,804
Remuneration of councillors 4,475 5,270 5,517 5,756 5,756 5,756 – 5,807 6,116 6,498
Depreciation & asset impairment 32,373 34,429 36,426 17,877 17,877 17,877 – 18,682 19,541 20,440
Finance charges 6,837 15,469 16,271 7,365 2,365 2,365 – 2,471 2,585 2,704
Materials and bulk purchases 41,651 60,413 62,355 66,968 62,968 62,968 – 66,857 69,933 73,150
Transfers and grants – – – – – – – – – –
Other ex penditure 78,504 43,538 101,915 61,060 61,060 61,060 – 65,321 68,326 71,469
Total Expenditure 233,590 228,928 295,375 251,378 230,055 230,055 – 247,547 260,434 274,065
Surplus/(Deficit) (67,306) (71,179) (123,744) 65,204 95,388 95,388 – 546 2,896 5,119
Transfers and subsidies - capital (monetary
allocations) (National / Prov incial and District) 27,018 12,530 8,555 14,299 14,299 14,299 – 32,240 18,131 21,368
Transfers and subsidies - capital (monetary
allocations) (National / Prov incial Departmental
Agencies, Households, Non-profit Institutions,
Priv ate Enterprises, Public Corporatons, Higher
Educational Institutions) & Transfers and subsidies -
capital (in-kind - all) – 16,600 – – – – – 8,652 8,652 8,652
Surplus/(Deficit) after capital transfers &
contributions
(40,288) (42,050) (115,189) 79,502 109,687 109,687 – 41,438 29,679 35,138
Share of surplus/ (deficit) of associate – – – – – – – – – –
Surplus/(Deficit) for the year (40,288) (42,050) (115,189) 79,502 109,687 109,687 – 41,438 29,679 35,138
Capital expenditure & funds sources
Capital expenditure 50,810 14,692 16,116 14,799 14,449 14,449 – 50,515 36,849 40,548
Transfers recognised - capital 50,250 12,779 11,462 14,299 14,299 14,299 – 40,892 26,783 30,020
Borrow ing – – – – – – – – – –
Internally generated funds 560 1,913 4,654 500 150 150 – 9,623 10,066 10,529
Total sources of capital funds 50,810 14,692 16,116 14,799 14,449 14,449 – 50,515 36,849 40,548
Financial position
Total current assets 47,337 36,990 42,956 96,587 96,587 96,587 – 256,993 354,001 356,630
Total non current assets 785,669 779,611 731,680 782,787 782,437 782,437 – 806,495 843,577 882,366
Total current liabilities 176,463 212,876 277,564 217,512 217,512 217,512 – 296,142 309,765 324,014
Total non current liabilities 30,932 34,676 43,151 21,671 21,671 21,671 – 25,801 27,008 28,272
Community w ealth/Equity 625,611 569,049 453,920 726,693 756,527 756,527 – 548,390 636,272 629,353
Cash flows
Net cash from (used) operating 540 (7,959) (22,591) 22,733 44,056 44,056 – (48,091) (48,432) (48,415)
Net cash from (used) inv esting (21,790) (14,695) (15,545) – – – – – – –
Net cash from (used) financing (4,763) (5,461) 7,431 (85) (85) (85) – – – –
Cash/cash equivalents at the year end (26,013) (28,115) (30,705) 22,648 43,971 43,971 – (48,091) (96,524) (144,939)
Cash backing/surplus reconciliation
Cash and inv estments av ailable 9,439 13,550 12,430 52 52 52 – 8,254 8,626 9,014
Application of cash and inv estments 142,830 187,310 244,037 132,543 136,045 136,045 – 134,873 85,700 98,513
Balance - surplus (shortfall) (133,391) (173,760) (231,607) (132,491) (135,993) (135,993) – (126,618) (77,074) (89,498)
Asset management
Asset register summary (WDV) 785,669 779,611 731,680 782,787 782,437 782,437 782,437 806,495 843,577 882,366
Depreciation 31,986 32,745 31,096 17,877 17,877 17,877 17,877 18,682 19,540 20,439
Renew al and Upgrading of Ex isting Assets 586,613 14,692 16,116 14,799 14,449 14,449 14,449 6,000 6,276 6,565
Repairs and Maintenance 40,877 71,661 68,522 – – – – 2,748 2,874 3,007
Free services
Cost of Free Basic Serv ices prov ided – – – 8,512 8,512 8,512 12,127 12,127 12,685 13,268
Rev enue cost of free serv ices prov ided – – – 5,046 5,046 5,046 5,273 5,273 5,515 5,769
Households below minimum service level
Water: – – – – – – – – – –
Sanitation/sew erage: – – – – – – – – – –
Energy : – – – – – – – – – –
Refuse: – – – – – – – – – –
2020/21 Medium Term Revenue &
Expenditure FrameworkCurrent Year 2019/20
NC085 Tsantsabane - Table A1 Budget Summary
106
Explanatory notes to 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.
a. Financial management reforms emphasises the importance of the municipal budget
being funded. The current budget (2020/21) is not funded as required by National
Treasury. This requires the simultaneous assessment of the Financial Performance,
Financial Position and Cash Flow Budgets, along with the Capital Budget. The
Budget Summary provides the key information in this regard. The operating
surplus/deficit (after Total Expenditure) is negative over the MTREF.
b. Capital expenditure should be balanced by capital funding sources. The CRR
(capital replacement reserve) should be cash backed. Currently there are no funds
in the CRR.
3. 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 none of its obligations are cash-backed.
107
MBRR Table A2 - Budgeted Financial Performance (revenue and expenditure by standard classification)
Explanatory notes to 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 15 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 includes capital revenues (Transfers recognised –
capital) and so does not balance to the operating revenue shown on Table A4.
NC085 Tsantsabane - Table A2 Budgeted Financial Performance (revenue and expenditure by functional classification)
Functional Classification Description Ref 2016/17 2017/18 2018/19
R thousand 1Audited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Budget Year
2020/21
Budget Year
+1 2021/22
Budget Year
+2 2022/23
Revenue - Functional
Governance and administration 65,116 66,158 69,667 149,724 150,258 150,258 119,660 127,184 134,340
Ex ecutiv e and council – – – 3,123 3,123 3,123 2,971 3,093 3,222
Finance and administration 65,116 66,158 69,667 146,601 147,135 147,135 116,689 124,091 131,118
Internal audit – – – – – – – – –
Community and public safety 2,092 1,248 1,226 1,375 1,648 1,648 3,117 3,260 3,410
Community and social serv ices 2,089 1,247 1,225 198 471 471 1,888 1,974 2,065
Sport and recreation – – – – – – – – –
Public safety 3 0 1 1,176 1,176 1,176 1,229 1,286 1,345
Housing – – – – – – – – –
Health – – – – – – – – –
Economic and environmental services 36,201 33,185 11,866 16,842 16,933 16,933 27,141 28,437 31,746
Planning and dev elopment – – – 1,243 1,243 1,243 1,237 1,316 1,373
Road transport 36,201 33,185 11,866 15,599 15,690 15,690 25,904 27,121 30,373
Env ironmental protection – – – – – – – – –
Trading services 89,893 86,288 97,428 111,756 119,719 119,719 122,856 131,338 139,817
Energy sources 34,799 39,694 47,408 59,440 59,440 59,440 63,679 67,725 73,279
Water management 17,210 15,795 14,790 19,765 19,765 19,765 21,511 22,501 23,536
Waste w ater management 26,662 19,755 21,839 21,246 25,114 25,114 22,793 24,799 25,940
Waste management 11,222 11,044 13,391 11,305 15,400 15,400 14,873 16,312 17,063
Other 4 – – – – – – – – –
Total Revenue - Functional 2 193,303 186,879 180,186 279,697 288,558 288,558 272,774 290,218 309,314
Expenditure - Functional
Governance and administration 99,657 51,356 64,218 70,620 61,355 61,355 71,412 75,327 77,707
Ex ecutiv e and council 30,635 26,567 27,828 12,127 12,019 12,019 16,148 17,040 16,591
Finance and administration 69,022 24,789 36,389 57,898 48,742 48,742 54,641 57,626 60,413
Internal audit – – – 595 595 595 623 662 703
Community and public safety 34,988 38,711 40,441 24,675 22,256 22,256 25,795 27,367 29,022
Community and social serv ices 14,351 15,060 15,671 7,676 7,452 7,452 8,456 8,974 9,511
Sport and recreation 20,314 23,499 24,767 9,744 8,771 8,771 9,647 10,240 10,869
Public safety 323 151 3 5,034 4,626 4,626 5,286 5,597 5,927
Housing – – – 2,222 1,407 1,407 2,406 2,556 2,716
Health – – – – – – – – –
Economic and environmental services 24,545 25,729 27,112 17,704 15,641 15,641 11,470 12,138 12,845
Planning and dev elopment – – – 2,580 2,578 2,578 2,775 2,943 3,121
Road transport 24,545 25,729 27,112 15,124 13,063 13,063 8,695 9,195 9,724
Env ironmental protection – – – – – – – – 0
Trading services 74,400 113,133 163,605 138,379 130,803 130,803 142,549 149,495 156,786
Energy sources 24,470 35,731 47,950 69,210 64,831 64,831 72,151 75,628 79,274
Water management 28,189 50,141 69,493 32,318 30,066 30,066 31,630 33,151 34,746
Waste w ater management 4,733 12,244 29,431 26,266 25,662 25,662 27,994 29,388 30,854
Waste management 17,008 15,017 16,730 10,585 10,243 10,243 10,774 11,328 11,912
Other 4 – – – – – – – – –
Total Expenditure - Functional 3 233,590 228,928 295,375 251,378 230,055 230,055 251,226 264,328 276,360
Surplus/(Deficit) for the year (40,288) (42,050) (115,189) 28,319 58,503 58,503 21,548 25,890 32,954
Current Year 2019/202020/21 Medium Term Revenue &
Expenditure Framework
108
3. Note that as a general principle the revenues for the Trading Services should exceed their
expenditures. The table highlights that this is the not the case for any of the trading
services. As already noted above, the municipality will be undertaking a detailed study of
these functions to explore ways of improving efficiencies and provide a basis for re-
evaluating these functions’ tariff structures.
4. Other functions that show a deficit between revenue and expenditure are being financed
from rates revenues and other revenue sources.
MBRR Table A3 - Budgeted Financial Performance (revenue and expenditure by
municipal vote)
NC085 Tsantsabane - Table A2 Budgeted Financial Performance (revenue and expenditure by functional classification)
Functional Classification Description Ref 2016/17 2017/18 2018/19
R thousand 1Audited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Budget Year
2020/21
Budget Year
+1 2021/22
Budget Year
+2 2022/23
Revenue - Functional
Governance and administration 65,116 66,158 69,667 149,724 150,258 150,258 119,660 127,184 134,340
Ex ecutiv e and council – – – 3,123 3,123 3,123 2,971 3,093 3,222
Finance and administration 65,116 66,158 69,667 146,601 147,135 147,135 116,689 124,091 131,118
Internal audit – – – – – – – – –
Community and public safety 2,092 1,248 1,226 1,375 1,648 1,648 3,117 3,260 3,410
Community and social serv ices 2,089 1,247 1,225 198 471 471 1,888 1,974 2,065
Sport and recreation – – – – – – – – –
Public safety 3 0 1 1,176 1,176 1,176 1,229 1,286 1,345
Housing – – – – – – – – –
Health – – – – – – – – –
Economic and environmental services 36,201 33,185 11,866 16,842 16,933 16,933 27,141 28,437 31,746
Planning and dev elopment – – – 1,243 1,243 1,243 1,237 1,316 1,373
Road transport 36,201 33,185 11,866 15,599 15,690 15,690 25,904 27,121 30,373
Env ironmental protection – – – – – – – – –
Trading services 89,893 86,288 97,428 111,756 119,719 119,719 122,856 131,338 139,817
Energy sources 34,799 39,694 47,408 59,440 59,440 59,440 63,679 67,725 73,279
Water management 17,210 15,795 14,790 19,765 19,765 19,765 21,511 22,501 23,536
Waste w ater management 26,662 19,755 21,839 21,246 25,114 25,114 22,793 24,799 25,940
Waste management 11,222 11,044 13,391 11,305 15,400 15,400 14,873 16,312 17,063
Other 4 – – – – – – – – –
Total Revenue - Functional 2 193,303 186,879 180,186 279,697 288,558 288,558 272,774 290,218 309,314
Expenditure - Functional
Governance and administration 99,657 51,356 64,218 70,620 61,355 61,355 71,412 75,327 77,707
Ex ecutiv e and council 30,635 26,567 27,828 12,127 12,019 12,019 16,148 17,040 16,591
Finance and administration 69,022 24,789 36,389 57,898 48,742 48,742 54,641 57,626 60,413
Internal audit – – – 595 595 595 623 662 703
Community and public safety 34,988 38,711 40,441 24,675 22,256 22,256 25,795 27,367 29,022
Community and social serv ices 14,351 15,060 15,671 7,676 7,452 7,452 8,456 8,974 9,511
Sport and recreation 20,314 23,499 24,767 9,744 8,771 8,771 9,647 10,240 10,869
Public safety 323 151 3 5,034 4,626 4,626 5,286 5,597 5,927
Housing – – – 2,222 1,407 1,407 2,406 2,556 2,716
Health – – – – – – – – –
Economic and environmental services 24,545 25,729 27,112 17,704 15,641 15,641 11,470 12,138 12,845
Planning and dev elopment – – – 2,580 2,578 2,578 2,775 2,943 3,121
Road transport 24,545 25,729 27,112 15,124 13,063 13,063 8,695 9,195 9,724
Env ironmental protection – – – – – – – – 0
Trading services 74,400 113,133 163,605 138,379 130,803 130,803 142,549 149,495 156,786
Energy sources 24,470 35,731 47,950 69,210 64,831 64,831 72,151 75,628 79,274
Water management 28,189 50,141 69,493 32,318 30,066 30,066 31,630 33,151 34,746
Waste w ater management 4,733 12,244 29,431 26,266 25,662 25,662 27,994 29,388 30,854
Waste management 17,008 15,017 16,730 10,585 10,243 10,243 10,774 11,328 11,912
Other 4 – – – – – – – – –
Total Expenditure - Functional 3 233,590 228,928 295,375 251,378 230,055 230,055 251,226 264,328 276,360
Surplus/(Deficit) for the year (40,288) (42,050) (115,189) 28,319 58,503 58,503 21,548 25,890 32,954
Current Year 2019/202020/21 Medium Term Revenue &
Expenditure Framework
109
Explanatory notes to MBRR Table A3 - Budgeted Financial Performance (revenue and expenditure by municipal vote) 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.
2. This table is the main driver of management- responsibility and performance in terms of the
operating budget and also the benchmark against which any unauthorised expenditure will
be measured.
MBRR Table A4 - Budgeted Financial Performance (revenue and expenditure)
NC085 Tsantsabane - Table A4 Budgeted Financial Performance (revenue and expenditure)
Description Ref 2016/17 2017/18 2018/19
R thousand 1Audited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Pre-audit
outcome
Budget Year
2020/21
Budget Year
+1 2021/22
Budget Year
+2 2022/23
Revenue By Source
Property rates 2 29,025 27,652 27,421 80,000 80,000 80,000 80,000 62,109 64,966 67,955
Serv ice charges - electricity rev enue 2 34,799 39,694 47,408 57,440 57,440 57,440 57,440 61,879 64,725 67,703
Serv ice charges - w ater rev enue 2 17,210 15,795 14,790 19,765 19,765 19,765 19,765 21,511 22,501 23,536
Serv ice charges - sanitation rev enue 2 26,662 19,755 21,839 21,246 25,114 25,114 25,114 22,793 24,799 25,940
Serv ice charges - refuse rev enue 2 11,222 10,920 13,391 11,305 15,400 15,400 15,400 14,873 16,312 17,063
Rental of facilities and equipment 419 492 428 258 428 428 428 593 620 649
Interest earned - ex ternal inv estments 1,385 924 1,131 693 693 693 693 724 757 792
Interest earned - outstanding debtors – – – – – – – – –
Div idends receiv ed – – – – – – – – –
Fines, penalties and forfeits 574 332 416 631 631 631 631 662 692 724
Licences and permits 1,801 1,814 1,287 547 547 547 547 569 596 623
Agency serv ices – – – – – – – – – –
Transfers and subsidies 37,058 37,670 42,244 48,090 48,090 48,090 48,090 52,529 57,058 63,423
Other rev enue 2 124 1,626 1,275 422 1,150 1,255 1,255 2,746 2,872 3,004
Gains on disposal of PPE – 950 – 25,000 25,000 25,000 25,000 7,104 7,431 7,773
Total Revenue (excluding capital transfers
and contributions)
160,280 157,624 171,630 265,398 274,258 274,363 274,363 248,093 263,330 279,184
Expenditure By Type
Employ ee related costs 2 69,751 69,701 72,891 92,351 69,190 69,190 69,190 88,408 93,933 99,804
Remuneration of councillors 4,475 5,270 5,517 5,756 5,756 5,756 5,756 5,807 6,116 6,498
Debt impairment 3 46,401 18,047 37,447 30,000 30,000 30,000 30,000 31,350 32,792 34,301
Depreciation & asset impairment 2 31,986 30,828 31,096 17,877 17,877 17,877 17,877 18,682 19,541 20,440
Finance charges 6,840 – 16,271 7,365 2,365 2,365 2,365 2,471 2,585 2,704
Bulk purchases 2 38,599 52,227 60,336 64,338 60,338 60,338 60,338 64,109 67,058 70,142
Other materials 8 – 8,737 2,019 2,630 2,630 2,630 2,630 2,749 2,875 3,007
Contracted serv ices – 15,280 22,569 10,150 10,150 10,150 10,150 16,079 16,819 17,593
Transfers and subsidies – – – – – – – – – –
Other ex penditure 4, 5 35,152 36,729 20,179 20,910 20,910 20,910 20,910 17,892 18,715 19,576
Loss on disposal of PPE 387 4,305 27,050 – – – – – – –
Total Expenditure 233,591 241,124 295,375 251,378 219,217 219,217 219,217 247,546 260,434 274,065
Surplus/(Deficit) (73,311) (83,500) (123,745) 14,020 55,041 55,146 55,146 546 2,896 5,120
Transfers and subsidies - capital (monetary
allocations) (National / Prov incial and District) 33,023 29,564 8,555 14,299 14,299 14,299 14,299 32,240 18,131 21,368
Transfers and subsidies - capital (monetary
allocations) (National / Prov incial Departmental
Agencies, Households, Non-profit Institutions,
Priv ate Enterprises, Public Corporatons, Higher 6 – – – – – – – – – –
Transfers and subsidies - capital (in-kind - all) – – – – – – – 8,652 8,652 8,652
Surplus/(Deficit) after capital transfers &
contributions
(40,288) (53,936) (115,190) 28,319 69,340 69,445 69,445 41,438 29,679 35,139
Tax ation – – – – – – – – – –
Surplus/(Deficit) after taxation (40,288) (53,936) (115,190) 28,319 69,340 69,445 69,445 41,438 29,679 35,139
Attributable to minorities – – – – – – – – – –
Surplus/(Deficit) attributable to municipality (40,288) (53,936) (115,190) 28,319 69,340 69,445 69,445 41,438 29,679 35,139
Share of surplus/ (deficit) of associate 7 – – – – – – – – – –
Surplus/(Deficit) for the year (40,288) (53,936) (115,190) 28,319 69,340 69,445 69,445 41,438 29,679 35,139
2020/21 Medium Term Revenue &
Expenditure FrameworkCurrent Year 2019/20
110
Explanatory notes to Table A4 - Budgeted Financial Performance (revenue and expenditure)
1. Total revenue, excluding capital transfers, is R247 546 million in 2020/21 and escalates to
R260, 434 million by 2021/22 and R274 065 million in 2022/23. This represents a year-on-
year increase of 0.05 per cent.
2. Revenue to be generated from property rates is R59,987 million in the 2020/21 financial
year and increases to R62,747 million by 2021/22 and R62,493 million in the 2019/20
financial year
3. Services charges relating to electricity, water, sanitation and refuse removal constitutes the
biggest component of the revenue basket of the Municipality totalling R121,379 million for
the 2020/21 financial year and increasing to R128,675 million by 2021/22 and 134,594
million in 2022/23.
4. Transfers recognised – operating includes the local government equitable share and other
operating grants from national and provincial government. Transfers are fluctuating
according to grants provided for by the respective governments.
Expenditure by major type
5. Employee related costs, depreciation, operating grant expenditure and bulk purchases are
the main cost drivers within the municipality and alternative operational gains and
efficiencies will have to be identified to lessen the impact of wage and bulk tariff increases in
future years.
MBRR Table A5 - Budgeted Capital Expenditure by vote, standard classification and funding source
111
Explanatory notes to Table A5 - Budgeted Capital Expenditure by vote, standard classification and funding source 1. 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.
2. Unlike multi-year capital appropriations, single-year appropriations relate to expenditure that
will be incurred in the specific budget year such as the procurement of vehicles and
specialized tools and equipment. The budget appropriations for the two outer years are
indicative allocations based on the departmental business plans as informed by the IDP and
will be reviewed on an annual basis to assess the relevance of the expenditure in relation to
the strategic objectives and service delivery imperatives of the Municipality. For the purpose
of funding assessment of the MTREF, these appropriations have been included but no
commitments will be incurred against single-year appropriations for the two outer-years.
3. The capital program is funded from national grants and transfers and internally generated
funds from current and prior year surpluses and is listed above.
Capital Expenditure - Functional
Governance and administration 560 197,999 – 500 150 150 150 2,067 2,162 2,262
Ex ecutiv e and council 96,371 – – – – – 200 209 219
Finance and administration 560 101,628 – 500 150 150 150 1,867 1,953 2,043
Internal audit – – – – – – – –
Community and public safety – 17,172 – – – – – 1,556 1,628 1,702
Community and social serv ices 2,444 – – – – – 1,391 1,455 1,522
Sport and recreation 14,728 – – – – – 165 173 181
Public safety – – – – – – – –
Housing – – – – – – – –
Health – – – – – – – – – –
Economic and environmental services 10,155 267,500 – – – – – – – –
Planning and dev elopment – – – – – – – –
Road transport 10,155 267,500 – – – – – – – –
Env ironmental protection – – – – – – – –
Trading services 11,075 314,564 – 14,299 14,299 14,299 14,299 46,892 33,059 36,584
Energy sources – 92,405 – – – – – 6,000 6,276 6,565
Water management 4,684 128,534 – 14,299 14,299 14,299 14,299 40,892 26,783 30,020
Waste w ater management 6,391 92,056 – – – – – – – –
Waste management – 1,569 – – – – – – – –
Other – 397 – – – – – – – –
Total Capital Expenditure - Functional 3 21,790 797,632 – 14,799 14,449 14,449 14,449 50,515 36,849 40,548
Funded by:
National Gov ernment 21,230 797,632 – 14,299 14,299 14,299 14,299 32,240 18,131 21,368
Prov incial Gov ernment – – – – – – – – – –
District Municipality – – – – – – – – –
Other transfers and grants – – – – – – – 8,652 8,652 8,652
Transfers recognised - capital 4 21,230 797,632 – 14,299 14,299 14,299 14,299 40,892 26,783 30,020
Borrowing 6 – – – – – – – – – –
Internally generated funds – – – 500 150 150 150 9,623 10,066 10,529
Total Capital Funding 7 21,230 797,632 – 14,799 14,449 14,449 14,449 50,515 36,849 40,548
112
MBRR Table A6 - Budgeted Financial Position
Explanatory notes to Table A6 - Budgeted Financial Position
NC085 Tsantsabane - Table A6 Budgeted Financial Position
Description Ref 2016/17 2017/18 2018/19
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Pre-audit
outcome
Budget Year
2020/21
Budget Year
+1 2021/22
Budget Year
+2 2022/23
ASSETS
Current assets
Cash 466 2,004 1,937 52 52 52 – 54 57 59
Call inv estment deposits 1 8,973 11,546 10,494 – – – – 8,200 8,569 8,955
Consumer debtors 1 8,016 9,212 11,555 61,960 61,960 61,960 – 235,507 331,535 333,139
Other debtors 29,350 8,409 13,050 34,040 34,040 34,040 – 7,045 7,369 7,708
Current portion of long-term receiv ables – – – – – – – – – (0)
Inv entory 2 532 5,819 5,920 535 535 535 – 6,186 6,471 6,769
Total current assets 47,337 36,990 42,956 96,587 96,587 96,587 – 256,993 354,001 356,630
Non current assets
Long-term receiv ables – – – – – – – – – –
Inv estments – – – – – – – – – –
Inv estment property 91,658 80,446 57,565 79,116 79,116 79,116 – 60,155 62,923 65,817
Inv estment in Associate – – – – – – – – – –
Property , plant and equipment 3 693,439 698,688 673,702 702,349 702,349 702,349 – 745,924 780,236 816,127
Biological – – – – – – – – – –
Intangible 218 122 58 967 617 617 – 61 63 66
Other non-current assets 355 355 355 355 355 355 – 355 355 355
Total non current assets 785,669 779,611 731,680 782,787 782,437 782,437 – 806,495 843,577 882,366
TOTAL ASSETS 833,006 816,600 774,636 879,374 879,024 879,024 – 1,063,488 1,197,578 1,238,995
LIABILITIES
Current liabilities
Bank ov erdraft 1 – – – – – – – – – –
Borrow ing 4 2,897 4,656 6,912 – – – – – – –
Consumer deposits 2,095 2,261 2,294 2,379 2,379 2,379 – 2,397 2,507 2,623
Trade and other pay ables 4 170,703 204,766 267,196 212,985 212,985 212,985 – 292,532 305,988 320,064
Prov isions 768 1,193 1,161 2,149 2,149 2,149 – 1,214 1,269 1,328
Total current liabilities 176,463 212,876 277,564 217,512 217,512 217,512 – 296,142 309,765 324,014
Non current liabilities
Borrow ing 669 2,465 9,673 – – – – 4,600 4,812 5,033
Prov isions 30,264 32,211 33,479 21,671 21,671 21,671 – 21,201 22,196 23,239
Total non current liabilities 30,932 34,676 43,151 21,671 21,671 21,671 – 25,801 27,008 28,272
TOTAL LIABILITIES 207,396 247,551 320,715 239,184 239,184 239,184 – 321,943 336,773 352,286
NET ASSETS 5 625,611 569,049 453,920 640,190 639,840 639,840 – 741,545 860,806 886,709
COMMUNITY WEALTH/EQUITY
Accumulated Surplus/(Deficit) 625,611 569,049 453,920 726,693 756,527 756,527 548,390 636,272 629,353
Reserv es 4 – – – – – – – – – –
TOTAL COMMUNITY WEALTH/EQUITY 5 625,611 569,049 453,920 726,693 756,527 756,527 – 548,390 636,272 629,353
2020/21 Medium Term Revenue &
Expenditure FrameworkCurrent Year 2019/20
113
1. The Budgeted Financial Position is consistent with international standards of good financial
management practice, and improves understandability for councillors 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. This table is supported by an extensive table of notes (SA3 which can be found on later in
this report 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.
5. 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.
MBRR Table A7 - Budgeted Cash Flow Statement
114
Explanatory notes to Table A7 - Budgeted Cash Flow Statement 1. The budgeted cash flow statement is the first measurement in determining if the budget is
funded.
2. It shows the expected level of cash in-flow versus cash out-flow that is likely to result from
the implementation of the budget.
3. It can be seen that the cash levels of the Municipality is expected to fall significantly in the
future.
NC085 Tsantsabane - Table A7 Budgeted Cash Flows
Description Ref 2016/17 2017/18 2018/19
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Pre-audit
outcome
Budget Year
2020/21
Budget Year
+1 2021/22
Budget Year
+2 2022/23
CASH FLOW FROM OPERATING ACTIVITIES
Receipts
Property rates 23,649 27,261 22,051 68,000 68,000 68,000 – 40,371 42,228 44,170
Serv ice charges 64,276 85,464 95,219 93,293 93,293 93,293 – 78,687 83,420 87,257
Other rev enue 2,960 4,373 3,447 1,859 1,859 1,859 – 2,970 3,107 3,250
Transfers and Subsidies - Operational 1 35,328 49,854 46,122 48,090 48,090 48,090 – 52,529 57,058 63,423
Transfers and Subsidies - Capital 1 27,758 8,939 9,221 14,299 14,299 14,299 – – – –
Interest 1,385 924 1,131 693 693 693 – 724 757 792
Div idends – – – – – – – – – –
Payments
Suppliers and employ ees (147,980) (169,305) (183,511) (196,136) (179,813) (179,813) – (180,686) (190,352) (200,604)
Finance charges (6,837) (15,469) (16,271) (7,365) (2,365) (2,365) – (28,215) (29,513) (30,870)
Transfers and Grants 1 – – – – – – – (14,471) (15,137) (15,833)
NET CASH FROM/(USED) OPERATING ACTIVITIES 540 (7,959) (22,591) 22,733 44,056 44,056 – (48,091) (48,432) (48,415)
CASH FLOWS FROM INVESTING ACTIVITIES
Receipts
Proceeds on disposal of PPE – – 571 – – – – 32,240 18,131 21,368 – – – – – – –
Decrease (increase) in non-current receiv ables – – – – – – – – – –
Decrease (increase) in non-current inv estments – – – – – – – – – –
Payments
Capital assets (21,790) (14,695) (16,116) – – – – (32,240) (18,131) (21,368)
NET CASH FROM/(USED) INVESTING ACTIVITIES (21,790) (14,695) (15,545) – – – – – – –
CASH FLOWS FROM FINANCING ACTIVITIES
Receipts
Short term loans – – 7,464 – – – – – – –
Borrow ing long term/refinancing – – – – – – – – – –
Increase (decrease) in consumer deposits (2,095) (166) (33) (85) (85) (85) – – – –
Payments
Repay ment of borrow ing (2,668) (5,295) – – – – – – – –
NET CASH FROM/(USED) FINANCING ACTIVITIES (4,763) (5,461) 7,431 (85) (85) (85) – – – –
NET INCREASE/ (DECREASE) IN CASH HELD (26,013) (28,115) (30,705) 22,648 43,971 43,971 – (48,091) (48,432) (48,415)
Cash/cash equiv alents at the y ear begin: 2 – – – – – – – – (48,091) (96,524)
Cash/cash equiv alents at the y ear end: 2 (26,013) (28,115) (30,705) 22,648 43,971 43,971 – (48,091) (96,524) (144,939)
2020/21 Medium Term Revenue &
Expenditure FrameworkCurrent Year 2019/20
115
4. MBRR Table A8 - Cash Backed Reserves/Accumulated Surplus Reconciliation
Explanatory notes to Table A8 - Cash Backed Reserves/Accumulated Surplus Reconciliation 1. The cash backed reserves/accumulated surplus reconciliation is not aligned to the
requirements of MFMA Circular 42 – Funding a Municipal Budget. In essence the table
evaluates the funding levels of the budget by firstly forecasting the cash and investments at
year end and secondly reconciling the available funding to the liabilities/commitments that
exist.
2. The outcome of this exercise would either be a surplus or deficit. A deficit would indicate
that the applications exceed the cash and investments available and would be indicative of
non-compliance with the MFMA requirements that the municipality’s budget must be
“funded”. The municipality’s budget is not cash-funded and thus in compliance with the
requirements of the MFMA.
3. As part of the budgeting and planning guidelines that informed the compilation of the
2020/21 MTREF the end objective of the medium-term framework was to ensure the budget
is funded aligned to section 18 of the MFMA and it is not the case as A8 shows that the
budget is not funded.
4. MBRR Table A9 - Asset Management(Below)
NC085 Tsantsabane - Table A8 Cash backed reserves/accumulated surplus reconciliation
Description Ref 2016/17 2017/18 2018/19
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Pre-audit
outcome
Budget Year
2020/21
Budget Year
+1 2021/22
Budget Year
+2 2022/23
Cash and investments available
Cash/cash equiv alents at the y ear end 1 (26,013) (28,115) (30,705) 22,648 43,971 43,971 – (48,091) (96,524) (144,939)
Other current inv estments > 90 day s 35,452 41,665 43,135 (22,596) (43,919) (43,919) – 56,346 105,150 153,953
Non current assets - Inv estments 1 – – – – – – – – – –
Cash and investments available: 9,439 13,550 12,430 52 52 52 – 8,254 8,626 9,014
Application of cash and investments
Unspent conditional transfers 875 3,753 7,710 212,985 212,985 212,985 – – – (0)
Unspent borrow ing – – – – – – – – –
Statutory requirements 2
Other w orking capital requirements 3 141,955 183,556 236,327 (80,442) (76,940) (76,940) – 134,873 85,700 98,513
Other prov isions
Long term inv estments committed 4 – – – – – – – – – –
Reserv es to be backed by cash/inv estments 5
Total Application of cash and investments: 142,830 187,310 244,037 132,543 136,045 136,045 – 134,873 85,700 98,513
Surplus(shortfall) (133,391) (173,760) (231,607) (132,491) (135,993) (135,993) – (126,618) (77,074) (89,498)
2020/21 Medium Term Revenue &
Expenditure FrameworkCurrent Year 2019/20
116
Explanatory notes to Table A9 - Asset Management
1. Table A9 provides an overview of municipal capital allocations to building new assets and
the renewal of existing assets, as well as spending on repairs and maintenance by asset
class.
2. National Treasury has recommended that municipalities should allocate at least 40 per cent
of their capital budget to the renewal of existing assets, and allocations to repairs and
maintenance should be 8 per cent of PPE. The Municipality does not meet both these
recommendations.
3. An analysis between depreciation and operational repairs and maintenance over the
MTREF is not yet possible until the municipality changes its financial systems to include all
maintenance costs, also those incurred internally, to the maintenance votes. When
implemented it will highlight the Municipality’s maintenance backlog.
Table A10 – Consolidated basic service delivery
ASSET REGISTER SUMMARY - PPE (WDV) 5 785,669 779,611 731,680 782,787 782,437 782,437 806,495 843,577 882,366
Roads Infrastructure 48,874 562,388 539,319 244,013 244,013 244,013 266,963 279,243 292,088
Storm water Infrastructure – – – 5,351 5,351 5,351 5,592 5,849 6,118
Electrical Infrastructure – – – 86,043 86,043 86,043 97,715 103,327 110,518
Water Supply Infrastructure 537,396 – – 143,512 143,512 143,512 157,909 165,023 172,180
Sanitation Infrastructure – – – 102,242 102,242 102,242 88,548 91,654 93,866
Solid Waste Infrastructure – – – 1,466 1,466 1,466 1,537 1,608 1,682
Rail Infrastructure – – – – – – – – –
Coastal Infrastructure – – – – – – – – –
Information and Communication Infrastructure – – – – – – – – –
Infrastructure 586,270 562,388 539,319 582,628 582,628 582,628 618,264 646,705 676,453
Community Assets 65,948 16,059 14,543 16,048 16,048 16,048 18,788 19,652 20,557
Heritage Assets 355 355 355 355 355 355 355 355 355
Investment properties 91,658 80,446 57,565 79,116 79,116 79,116 60,155 62,923 65,817
Other Assets 41,220 73,574 73,177 361 361 361 377 394 412
Biological or Cultivated Assets – – – – – – – – –
Intangible Assets 218 122 58 967 617 617 61 63 66
Computer Equipment – – – – – – 533 558 583
Furniture and Office Equipment – – – 2,880 2,880 2,880 3,009 3,148 3,293
Machinery and Equipment – – – 5,007 5,007 5,007 5,232 5,473 5,724
Transport Assets – – – 4,084 4,084 4,084 4,268 4,464 4,670
Land – 46,667 46,664 91,342 91,342 91,342 95,452 99,843 104,436
Zoo's, Marine and Non-biological Animals – – – – – – – – –
TOTAL ASSET REGISTER SUMMARY - PPE (WDV) 5 785,669 779,611 731,680 782,787 782,437 782,437 806,495 843,577 882,366
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Refer to table A10 under.
NC085 Tsantsabane - Table A10 Basic service delivery measurement
2016/17 2017/18 2018/19
Outcome Outcome OutcomeOriginal
Budget
Adjusted
Budget
Full Year
Forecast
Budget Year
2020/21
Budget Year
+1 2021/22
Budget Year
+2 2022/23
Household service targets 1
Water:
Piped w ater inside dw elling – – – – – – – – –
Piped w ater inside y ard (but not in dw elling) – – – – – – – – –
Using public tap (at least min.serv ice lev el) 2 – – – – – – – – –
Other w ater supply (at least min.serv ice lev el) 4 – – – – – – – – –
Minimum Service Level and Above sub-total – – – – – – – – –
Using public tap (< min.serv ice lev el) 3 – – – – – – – – –
Other w ater supply (< min.serv ice lev el) 4 – – – – – – – – –
No w ater supply – – – – – – – – –
Below Minimum Service Level sub-total – – – – – – – – –
Total number of households 5 – – – – – – – – –
Sanitation/sewerage:
Flush toilet (connected to sew erage) – – – – – – – – –
Flush toilet (w ith septic tank) – – – – – – – – –
Chemical toilet – – – – – – – – –
Pit toilet (v entilated) – – – – – – – – –
Other toilet prov isions (> min.serv ice lev el) – – – – – – – – –
Minimum Service Level and Above sub-total – – – – – – – – –
Bucket toilet – – – – – – – – –
Other toilet prov isions (< min.serv ice lev el) – – – – – – – – –
No toilet prov isions – – – – – – – – –
Below Minimum Service Level sub-total – – – – – – – – –
Total number of households 5 – – – – – – – – –
Energy:
Electricity (at least min.serv ice lev el) – – – – – – – – –
Electricity - prepaid (min.serv ice lev el) – – – – – – – – –
Minimum Service Level and Above sub-total – – – – – – – – –
Electricity (< min.serv ice lev el) – – – – – – – – –
Electricity - prepaid (< min. serv ice lev el) – – – – – – – – –
Other energy sources – – – – – – – – –
Below Minimum Service Level sub-total – – – – – – – – –
Total number of households 5 – – – – – – – – –
Refuse:
Remov ed at least once a w eek – – – – – – – – –
Minimum Service Level and Above sub-total – – – – – – – – –
Remov ed less frequently than once a w eek – – – – – – – – –
Using communal refuse dump – – – – – – – – –
Using ow n refuse dump – – – – – – – – –
Other rubbish disposal – – – – – – – – –
No rubbish disposal – – – – – – – – –
Below Minimum Service Level sub-total – – – – – – – – –
Total number of households 5 – – – – – – – – –
Households receiving Free Basic Service 7
Water (6 kilolitres per household per month) – – – – – – – – –
Sanitation (free minimum lev el serv ice) – – – – – – – – –
Electricity /other energy (50kw h per household per month) – – – – – – – – –
Refuse (remov ed at least once a w eek) – – – – – – – – –
Cost of Free Basic Services provided - Formal Settlements (R'000) 8
Water (6 kilolitres per indigent household per month) – – – 2,800 2,800 2,800 2,926 3,061 3,201
Sanitation (free sanitation serv ice to indigent households) – – – 3,093 3,093 3,093 3,232 3,381 3,537
Electricity /other energy (50kw h per indigent household per month) – – – 2,946 2,946 2,946 3,078 3,220 3,368
Refuse (remov ed once a w eek for indigent households) – 125 – 2,766 2,766 2,766 2,891 3,024 3,163
Cost of Free Basic Services provided - Informal Formal Settlements (R'000) – – – – – – – – –
Total cost of FBS provided – 125 – 11,605 11,605 11,605 12,127 12,685 13,268
Current Year 2019/202020/21 Medium Term Revenue &
Expenditure FrameworkDescription Ref
118
Part 2 – Supporting Documentation
Overview of the annual budget process 1
Section 53 of the MFMA requires the Mayor of the municipality to provide general political
guidance in the budget process and the setting of priorities that must guide the preparation of
the budget. In addition Chapter 2 of the Municipal Budget and Reporting Regulations states
that the Mayor of the municipality must establish a Budget Steering Committee to provide
technical assistance to the Mayor in discharging the responsibilities set out in section 53 of the
Act.
2 The Budget Steering Committee consists of the Municipal Manager and senior officials
of the municipality meeting under the chairpersonship of the Mayor.
3 The primary aims of the Budget Steering Committee is to ensure:
• that the process followed to compile the budget complies with legislation and good
budget practices;
• that there is proper alignment between the policy and service delivery priorities set out
in the Municipality’s IDP and the budget, taking into account the need to protect the
financial sustainability of municipality;
• that the municipality’s revenue and tariff setting strategies ensure that the cash
resources needed to deliver services are available; and
• that the various spending priorities of the different municipal departments are properly
evaluated and prioritised in the allocation of resources.
Budget Process Overview
4 In terms of section 21 of the MFMA the Mayor is required to table in Council ten months
before the start of the new financial year (i.e. in August 2017) a time schedule that sets out the
process to revise the IDP and prepare the budget.
The Mayor tabled in Council the required IDP and budget time schedule during August 2019. Key dates applicable to the process were: • August 2019 – Joint strategic planning session of the Budget Steering Committee.
Aim: to review past performance trends of the capital and operating budgets, the
economic realities and to set the prioritisation criteria for the compilation of the 2020/21
MTREF;
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• November 2019 – Detail departmental budget proposals (capital and operating)
submitted to the Budget and Treasury Office for consolidation and assessment against
the financial planning guidelines;
• 7 to 14 January 2020 - Review of the financial strategy and key economic and financial
planning assumptions by the Budget Steering Committee. This included financial
forecasting and scenario considerations;
• January 2020 – Multi-year budget proposals are submitted to the Budget and Steering
committee.
• 29 January 2020- Council considers the 2019/20 Mid-year Review and Adjustments
Budget;
• February 2020 - Recommendations of the Budget and steering committee. The draft
2019/20 MTREF is revised accordingly;
• 28 March 2020 - Tabling in Council of the draft 2020/21 IDP and 2020/21 MTREF for
public consultation;
• April 2020 – Public consultation;
• 09 May 2020 - Closing date for written comments;
• 12 to 24 May 2020 – finalisation of the 2020/21 IDP and 2020/21 MTREF, taking into
consideration comments received from the public, comments from National Treasury,
and updated information from the most recent Division of Revenue Bill and financial
framework;
• Workshop councillors on the budget – 26 May 2020 and
• 30 May 2020 - Tabling of the 2020/21 IDP and 2020/21 MTREF before Council for
consideration and approval.
• Mayor sign the SDBIP and performance contracts of senior managers for 2020/21 by
16 June 2020.
IDP and Service Delivery and Budget Implementation Plan
This is the first review of the IDP as adopted by Council in June 2019. It started in 2016 after the tabling of the IDP Process Plan and the Budget Time Schedule for the 2020/21 MTREF in August. The Municipality’s IDP is its principal strategic planning instrument, which directly guides and informs its planning, budget, management and development actions. This framework is rolled out into objectives, key performance indicators and targets for implementation which directly inform the Service Delivery and Budget Implementation Plan. The Process Plan applicable to the fifth revision cycle included the following key IDP processes and deliverables:
120
• Registration of community needs;
• Compilation of departmental business plans including key performance indicators and
targets;
• Financial planning and budgeting process;
• Public participation process;
• Compilation of the SDBIP, and
• The review of the performance management and monitoring processes.
The IDP has been taken into a business and financial planning process leading up to the 2020/21 MTREF, based on the approved 2019/20 MTREF, Mid-year Review and adjustments budget. The business planning process has subsequently been refined in the light of current economic circumstances and the resulting revenue projections. With the compilation of the 2020/21 MTREF, each department/function had to review the business planning process, including the setting of priorities and targets after reviewing the mid-year and third quarter performance against the 2020/21 Departmental Service Delivery and Budget Implementation Plan. Business planning links back to priority needs and master planning, and essentially informed the detail operating budget appropriations and three-year capital programme.
Financial Modelling and Key Planning Drivers
As part of the compilation of the 2020/21 MTREF, extensive financial modelling was undertaken to ensure affordability and long-term financial sustainability. The following key factors and planning strategies have informed the compilation of the 2020/21 MTREF: • Municipality growth
• Policy priorities and strategic objectives
• Asset maintenance
• Economic climate and trends (i.e inflation, Eskom increases, household debt, migration
patterns)
• Performance trends
• The approved 2020/21 adjustments budget and performance against the SDBIP
• Cash Flow Management Strategy
• Debtor payment levels
• Loan and investment possibilities
• The need for tariff increases versus the ability of the community to pay for services;
121
• Improved and sustainable service delivery
In addition to the above, the strategic guidance given in National Treasury’s MFMA Circulars 70 and 72 has been taken into consideration in the planning and prioritisation process. Overview of alignment of annual budget with IDP The Constitution mandates local government with the responsibility to exercise local developmental and cooperative governance. The eradication of imbalances in South African society can only be realized through a credible integrated developmental planning process. Municipalities in South Africa need to utilise integrated development planning as a method to plan future development in their areas and so find the best solutions to achieve sound long-term development goals. A municipal IDP provides a five year strategic programme of action aimed at setting short, medium and long term strategic and budget priorities to create a development platform, which correlates with the term of office of the political incumbents. The plan aligns the resources and the capacity of a municipality to its overall development aims and guides the municipal budget. An IDP is therefore a key instrument which municipalities use to provide vision, leadership and direction to all those that have a role to play in the development of a municipal area. The IDP enables municipalities to make the best use of scarce resources and speed up service delivery. Integrated developmental planning in the South African context is amongst others, an approach to planning aimed at involving the municipality and the community to jointly find the best solutions towards sustainable development. Furthermore, integrated development planning provides a strategic environment for managing and guiding all planning, development and decision making in the municipality. It is important that the IDP developed by municipalities correlate with National and Provincial intent. It must aim to co-ordinate the work of local and other spheres of government in a coherent plan to improve the quality of life for all the people living in that area. Applied to the Municipality, issues of national and provincial importance should be reflected in the IDP of the municipality. A clear understanding of such intent is therefore imperative to ensure that the Municipality strategically complies with the key national and provincial priorities. The aim of this revision cycle was to develop and coordinate a coherent plan to improve the quality of life for all the people living in the area, also reflecting issues of national and provincial importance. One of the key objectives is therefore to ensure that there exists alignment between national and provincial priorities, policies and strategies and the Municipality’s response to these requirements. The national and provincial priorities, policies and strategies of importance include amongst others: • Green Paper on National Strategic Planning of 2009;
• Government Programme of Action;
• Development Facilitation Act of 1995;
• Provincial Growth and Development Strategy (GGDS);
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• National and Provincial spatial development perspectives;
• Relevant sector plans such as transportation, legislation and policy;
• National Key Performance Indicators (NKPIs);
• Accelerated and Shared Growth Initiative (ASGISA);
• National 2015 Vision;
• National Spatial Development Perspective (NSDP) and
• The National Priority Outcomes.
The Constitution requires local government to relate its management, budgeting and planning functions to its objectives. This gives a clear indication of the intended purposes of municipal integrated development planning. Legislation stipulates clearly that a municipality must not only give effect to its IDP, but must also conduct its affairs in a manner which is consistent with its IDP. The following table highlights the IDP’s five strategic objectives for the 2020/21 MTREF and further planning refinements that have directly informed the compilation of the budget: IDP Strategic Objectives
2020/21 Financial Year 2020/21 MTREF
1. The provision of quality basic services and infrastructure
1. Provision of quality basic services and infrastructure
2. Acceleration of higher and shared economic growth and development
2. Economic growth and development that leads to sustainable job creation
3. Fighting of poverty, building clean, healthy, safe and sustainable communities
3.1 Fight poverty and build clean, healthy, safe and sustainable communities
3.2 Integrated Social Services for empowered and sustainable communities
4. Fostering participatory democracy and adherence to Tsantsabane principles through a caring, accessible and accountable service
4. Foster participatory democracy and Tsantsabane principles through a caring, accessible and accountable service
5. Good governance, Financial viability and institutional governance
5.1 Promote sound governance
5.2 Ensure financial sustainability
5.3 Optimal institutional transformation to ensure capacity to achieve set objectives
In order to ensure integrated and focused service delivery between all spheres of government it was important for the Municipality to align its budget priorities with that of national and provincial government. All spheres of government place a high priority on infrastructure development, economic development and job creation, efficient service delivery, poverty alleviation and building sound institutional arrangements. Local priorities were identified as part of the IDP review process which is directly aligned to that of the national and provincial priorities. The key performance areas can be summarised as follows against the five strategic objectives:
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1. Provision of quality basic services and infrastructure which includes, amongst others:
o Provide electricity;
o Provide water;
o Provide sanitation;
o Provide waste removal;
o Provide housing;
o Provide roads and storm water;
o Provide public transport;
o Provide municipal planning services; and
o Maintaining the infrastructure of the Municipality.
2. Economic growth and development that leads to sustainable job creation by:
o Ensuring the is a clear structural plan for the Municipality;
o Ensuring planning processes function in accordance with set timeframes;
o Facilitating the use of labour intensive approaches in the delivery of services and
the building of infrastructure.
3.1 Fight poverty and build clean, healthy, safe and sustainable communities:
o Effective implementation of the Indigent Policy;
o Working with the provincial department of health to provide primary health care
services;
o Extending waste removal services and ensuring effective Municipality cleansing;
o Ensuring all waste water treatment works are operating optimally;
o Working with strategic partners such as SAPS, to address crime;
o Ensuring save working environments by effective enforcement of building and
health regulations;
o Promote viable, sustainable communities through proper zoning; and
o Promote environmental sustainability by protecting wetlands and key open
spaces.
3.2 Integrated Social Services for empowered and sustainable communities
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o Work with provincial departments to ensure the development of community
infrastructure such as schools and clinics is properly co-ordinated with the
informal settlements upgrade programme
4. Foster participatory democracy and Tsantsabane principles through a caring,
accessible and accountable service by: o Optimising effective community participation in the ward committee system; and
o Implementing Tsantsabane in the revenue management strategy.
5.1 Promote sound governance through:
o Publishing the outcomes of all tender processes on the municipal website
5.2 Ensure financial sustainability through:
o Reviewing the use of contracted services
o Continuing to implement the infrastructure renewal strategy and the repairs and
maintenance plan
5.3 Optimal institutional transformation to ensure capacity to achieve set objectives
o Review of the organizational structure to optimize the use of personnel;
In line with the MSA, the IDP constitutes a single, inclusive strategic plan for the Municipality. The five-year programme responds to the development challenges and opportunities faced by the Municipality by identifying the key performance areas to achieve the five the strategic objectives mentioned above. In addition to the five-year IDP, the Municipality undertakes an extensive planning and developmental strategy which primarily focuses on a longer-term horizon; 15 to 20 years. This process is aimed at influencing the development path by proposing a substantial programme of public-led investment to restructure current patterns of settlement, activity and access to resources in the Municipality so as to promote greater equity and enhanced opportunity. The strategy specifically targets future developmental opportunities in traditional dormitory settlements. It provides direction to the Municipality’s IDP, associated sectoral plans and strategies, and the allocation of resources of the Municipality and other service delivery partners. The 2019/20 MTREF has therefore been directly informed by the IDP revision process and the following tables provide a reconciliation between the IDP strategic objectives and operating revenue, operating expenditure and capital expenditure.
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MBRR Table SA4 - Reconciliation between the IDP strategic objectives and budgeted revenue
NC085 Tsantsabane - Supporting Table SA4 Reconciliation of IDP strategic objectives and budget (revenue)
Strategic Objective GoalGoal
Code2016/17 2017/18 2018/19
R thousand
Audited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Budget Year
2020/21
Budget Year
+1 2021/22
Budget Year
+2 2022/23
Sustainable serv ice Water 17,210 18,514 – 19,765 18,058 18,058 20,654 21,605 22,598
Electricity 34,737 56,072 – 59,440 56,773 56,773 61,824 65,785 71,250
Sanitation 26,662 19,755 – 21,246 25,114 25,114 27,718 28,993 30,326
Waste management 11,222 11,044 – 11,305 15,400 15,400 16,093 16,833 17,608
Community and social
serv ices
2,063 1,254 – 198 641 641 1,888 1,974 2,065
Infrastructure Road & Storm w ater 28,018 10,512 – 16,842 15,803 15,803 17,339 17,352 18,011
Cemetaries – 26 – – – – – –
Housing – – – – – – – –
Intergrated Planning – – – – – – –
– – – –
Good Gov ernance Finance management 74,277 66,554 – 146,601 143,468 143,468 98,334 106,356 112,603
Human Resource – 92 – – – 50 52 55
Ex ecutiv e & Council – – – 3,123 3,123 3,123 2,971 3,093 3,222
Env ironmental Dev elopment LED – – – – – –
Social Dev elopment Culture &Sport – – – – – –
Safety & Security Road safety 2,135 2,043 – 1,176 1,176 1,176 1,222 1,286 1,445
Other 419 – – – – – – –
Allocations to other priorities 2
Total Revenue (excluding capital transfers and contributions) 1 196,744 185,867 – 279,697 279,556 279,556 248,093 263,330 279,184
Current Year 2019/202020/21 Medium Term Revenue &
Expenditure FrameworkRef
126
MBRR Table SA6 - Reconciliation between the IDP strategic objectives and budgeted capital expenditure
MBRR Table SA5 - Reconciliation between the IDP strategic objectives and budgeted operating expenditure
NC085 Tsantsabane - Supporting Table SA6 Reconciliation of IDP strategic objectives and budget (capital expenditure)
Strategic Objective GoalGoal
Code2016/17 2017/18 2018/19
R thousand
Audited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Budget Year
2020/21
Budget Year
+1 2021/22
Budget Year
+2 2022/23
Sustainable Wtater A 4,684 2,899 – 14,299 14,299 14,299 14,229 15,131 15,792
Electricity B 334 – – – 6,000 6,276 6,565
Sanitation C 6,391 447 – – –
Waste Management D – – –
Health E – – –
Community F – – –
Infrastructure Road & Stom w ater G 10,155 8,114 – – –
Cemeteries H – – –
Housing I – – –
Good Gov ernance Integrated Planning J – – –
Finanial Management K 560 – 500 150 150 1,400 1,463 1,529
Human Resource L – – –
Ex ecutiv e & Council M 168 – – – 200 209 219
Economic Dev elopment Local Economic Dev elopment N – – –
Social Dev elopment Culture & Sport O – – –
Safety & Security Road Safety P – – –
Allocations to other priorities 3 – – – –
Total Capital Expenditure 1 21,790 11,963 – 14,799 14,449 14,449 21,829 23,079 24,104
Current Year 2019/202020/21 Medium Term Revenue &
Expenditure FrameworkRef
127
NC085 Tsantsabane - Supporting Table SA5 Reconciliation of IDP strategic objectives and budget (operating expenditure)
Strategic Objective GoalGoal
Code2016/17 2017/18 2018/19
R thousand
Audited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Budget Year
2020/21
Budget Year
+1 2021/22
Budget Year
+2 2022/23
Sustainable Serv ice Water 35,815 46,242 32,318 32,318 29,484 29,484 31,630 33,151 34,746
Electricity 48,130 41,188 69,210 64,531 61,864 61,864 67,179 70,348 73,668
Sanitation 15,455 23,195 26,266 26,266 24,666 24,666 27,994 29,388 30,854
Waste Management 11,187 10,371 10,585 10,585 10,585 10,585 10,774 11,328 11,912
Health 844 796 – – – – – –
Community & social serv ices 9,440 4,469 6,394 8,271 6,272 6,272 7,421 7,876 8,359
Infrastructure Road & Storm w ater 17,874 23,786 15,124 20,885 13,771 13,771 14,982 15,868 16,806
Cemeteries 1,276 1,148 103 223 223 223 1,171 1,242 1,317
Housing 1,257 1,195 2,222 2,222 2,222 2,222 2,406 2,556 2,716
Intergrated Planning 4,288 565 1,148 1,433 1,433 1,433 1,391 1,478 1,570
Good Gov ernance Finance Management 42,102 50,661 35,837 40,883 32,705 32,705 39,511 41,606 43,820
Human Resoursce 4,720 2,774 2,589 2,589 2,589 2,589 1,668 1,765 1,868
Ex ecutiv e & Council 27,994 15,867 12,127 7,441 7,441 7,441 8,862 9,390 8,193
Env ironmnetal Dev elopment LED 1,433 – – – – – –
Social Dev elopment Culture & Sport 8,799 8,421 9,744 9,744 4,776 4,776 9,647 10,240 10,869
Safety & Security Road & safety 4,909 5,675 6,920 5,161 4,661 4,661 5,749 6,081 6,067
other 2,681 4,770 19,358 18,826 16,526 16,526 17,161 18,115 21,300
– – – – – –
Allocations to other priorities
Total Expenditure 1 236,771 241,124 251,378 251,377 219,217 219,217 247,546 260,434 274,065
Current Year 2019/202020/21 Medium Term Revenue &
Expenditure FrameworkRef
128
MBRR Table SA6 - Reconciliation between the IDP strategic objectives and budgeted capital expenditure
NC085 Tsantsabane - Supporting Table SA6 Reconciliation of IDP strategic objectives and budget (capital expenditure)
Strategic Objective GoalGoal
Code2016/17 2017/18 2018/19
R thousand
Audited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Budget Year
2020/21
Budget Year
+1 2021/22
Budget Year
+2 2022/23
Sustainable Wtater A 4,684 2,899 – 14,299 14,299 14,299 14,229 15,131 15,792
Electricity B 334 – – – 6,000 6,276 6,565
Sanitation C 6,391 447 – – –
Waste Management D – – –
Health E – – –
Community F – – –
Infrastructure Road & Stom w ater G 10,155 8,114 – – –
Cemeteries H – – –
Housing I – – –
Good Gov ernance Integrated Planning J – – –
Finanial Management K 560 – 500 150 150 1,400 1,463 1,529
Human Resource L – – –
Ex ecutiv e & Council M 168 – – – 200 209 219
Economic Dev elopment Local Economic Dev elopment N – – –
Social Dev elopment Culture & Sport O – – –
Safety & Security Road Safety P – – –
Allocations to other priorities 3 – – – –
Total Capital Expenditure 1 21,790 11,963 – 14,799 14,449 14,449 21,829 23,079 24,104
Current Year 2019/202020/21 Medium Term Revenue &
Expenditure FrameworkRef
129
Measurable performance objectives and indicators Performance Management is a system intended to manage and monitor service delivery progress against the identified strategic objectives and priorities. In accordance with legislative requirements and good business practices as informed by the National Framework for Managing Programme Performance Information, the Municipality with the help of the Municipal Manager, Mr HG Mathobela and the ZFM District Municipality, helped with the development and implemented a performance management system. The Municipality targets, monitors, assess and reviews organisational performance which in turn is directly linked to individual employee’s performance. The planning, budgeting and reporting cycle can be graphically illustrated as follows:
The performance of the Municipality relates directly to the extent to which it has achieved success in realising its goals and objectives, complied with legislative requirements and meeting stakeholder expectations. The Municipality therefore has adopted one integrated performance management system which encompasses: • Planning (setting goals, objectives, targets and benchmarks);
• Monitoring (regular monitoring and checking on the progress against plan);
• Measurement (indicators of success);
130
• Review (identifying areas requiring change and improvement);
• Reporting (what information, to whom, from whom, how often and for what purpose); and
• Improvement (making changes where necessary).
The performance information concepts used by the Municipality in its integrated performance management system are aligned to the Framework of Managing Programme Performance Information issued by the National Treasury:
The following table provides the main measurable performance objectives the municipality undertakes to achieve this financial year.
131
MBRR Table SA7 - Measurable performance objectives
NC085 Tsantsabane - Supporting Table SA7 Measureable performance objectives
2016/17 2017/18 2018/19
Audited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Budget Year
2020/21
Budget Year
+1 2021/22
Budget Year
+2 2022/23
Community Service
Function 1 - (name)
Library
100% Spending of Grant % Spending 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
100% Spending of Capital Budget % Spending 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Refuse removal
80% Spending of capital Budget % Spending 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0%
1 x Maintanance plan for Refuse Removal 1 xPlan 1.0% 1.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0%
90% Spending of Maintanance Budget % Spending 90.0% 90.0% 90.0%
Hall
80% Spending of capital Budget % Spending 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0%
1 x Maintanance Plan for Refuse 1 x Plan
90% Spending of Maintanance Budget % Spending 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0%
Finance and Administration
Budget and Reporting
18 Policies completed Policies 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%
12 By laws completed By law s 14.0% 14.0% 14.0% 14.0% 14.0% 14.0% 14.0% 14.0% 14.0%
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Unit of measurementDescription
Current Year 2019/202020/21 Medium Term Revenue &
Expenditure Framework
132
Performance indicators and benchmarks
Borrowing Management
Capital expenditure in local government can be funded by capital grants, own-source revenue and long
term borrowing. The ability of a municipality to raise long term borrowing is largely dependent on its
creditworthiness and financial position. As with all other municipalities, Tsantsabane Municipality’s
borrowing strategy is primarily informed by the affordability of debt repayments. The structure of the
Municipality’s debt portfolio is dominated by annuity loans. The following financial performance indicators
have formed part of the compilation of the 2019/20 MTREF:
• Borrowing to asset ratio is a measure of the long-term borrowing as a percentage of the total
asset base of the municipality. This ration is by far below the borrowing capacity of the
municipality, but it needs to be noted that capital grants and transfers has contributed significantly
to the municipality’s capital expenditure programs, thus limiting the need for borrowing.
• Capital charges to operating expenditure is a measure of the cost of borrowing in relation to the
operating expenditure. It can be seen that the cost of borrowing is less than 1% throughout the
MTREF period. While borrowing is considered a prudent financial instrument in financing capital
infrastructure development, this indicator will have to be carefully monitored going forward as the
Municipality should limit external interest charges to the minimum.
• Borrowing funding of own capital expenditure measures the degree to which own capital
expenditure (excluding grants and contributions) has been funded by way of borrowing. The
municipality intend to borrow money from DBSA during the MTREF period.
In summary, various financial risks could have a negative impact on the future borrowing capacity of the
municipality. In particular, the continued ability of the Municipality to meet its revenue targets and ensure
its forecasted cash flow targets are achieved will be critical in meeting the repayments of the debt service
costs. As part of the compilation of the 2019/20 MTREF the potential of smoothing out the debt profile
over the longer term will be investigated.
Safety of Capital
• The debt-to-equity ratio is a financial ratio indicating the relative proportion of equity and debt
used in financing the municipality’s assets. The indicator is based on the total of loans, creditors,
overdraft and tax provisions as a percentage of funds and reserves. This ratio is well above the
norm, indicating a weak financial position.
• The gearing ratio is a measure of the total long-term borrowings over funds and reserves. A ratio
in the region of 50% is a general benchmark and the municipality is currently on 6 per cent and
increasing to 6.2 per cent by 2019/20. This is again a clear indication of the municipality’s financial
weakness.
Liquidity
• The liquidity ratio is a measure of the ability of the municipality to utilize cash and cash equivalents
to extinguish or retire its current liabilities immediately. Ideally the municipality should have the
133
equivalent cash and cash equivalents on hand to meet at least the current liabilities, which should
translate into a liquidity ratio of 1. Anything below 1 indicates a shortage in cash to meet creditor
obligations.
Revenue Management
• As part of the financial sustainability strategy, an aggressive revenue management framework has
been implemented to increase cash inflow, not only from current billings but also from debtors
that are in arrears in excess of 90 days. The intention of the strategy is to streamline the revenue
value chain by ensuring accurate billing, customer service, credit control and debt collection. The
collection rates in this indicator is based on all cash receipts, also for direct income. The collection
rate used for the calculation of debtors’ payments was 75 per cent which is a fairly conservative
approach in order to cater for the current negative economic climate.
Creditors Management
• The Municipality did not managed to ensure that creditors are settled within the legislated 30 days
of invoice. The liquidity ratio is of concern. This had an impact on suppliers’ perceptions of risk
of doing business with the Municipality.
Other Indicators
• The electricity/water losses have not been measured. The Municipality needs to measure all
water and electricity losses.
• Employee costs as a percentage of operating revenue is fairly constant over the MTREF. This is
primarily owing to the high increase in bulk purchases which directly increase revenue levels, as
well as increased allocation relating to operating grants and transfers.
• Similar to that of employee costs, repairs and maintenance as percentage of operating revenue is
also fairly constant owing directly to cost drivers such as bulk purchases increasing above
inflation. The expenditure on repairs and maintenance is well below acceptable levels, but the
actual cost will only be determined when a costing system is implemented.
Free Basic Services: basic social services package for indigent households
The social package assists residents that have difficulty paying for services and are registered as indigent
households in terms of the Indigent Policy of the Municipality. Only registered indigents qualify for the
free basic services.
For the MTREF an estimate of 2,740 registered indigents have been provided for in the budget. In terms
of the Municipality’s indigent policy registered households are entitled to 6kℓ fee water, 50 kwh of
electricity, free sanitation and free waste removal equivalent once a week, as well as a discount on their
property rates.
Further detail relating to the number of households receiving free basic services, the cost of free basic
services, highest level of free basic services as well as the revenue cost associated with the free basic
services is contained elsewhere in this report.
Overview of budget related-policies
The Municipality’s budgeting process is guided and governed by relevant legislation, frameworks,
strategies and related policies.
134
Review of credit control and debt collection procedures/policies
The Collection Policy as approved by Council in October 2014 is currently under review. While the
adopted policy is credible, sustainable, manageable and informed by affordability and value for money
there has been a need to review certain components to achieve a higher collection rate. Some of the
possible revisions will include the lowering of the credit periods for the down payment of debt. In addition
emphasis will be placed on speeding up the indigent registration process to ensure that credit control and
debt collection efforts are not fruitlessly wasted on these debtors.
As most of the indigents within the municipal area are unable to pay for municipal services because they
are unemployed, they are entitled to free basic services.
The 2020/21 MTREF has been prepared on the basis of achieving an average debtors’ collection rate of
95 per cent on current billings. In addition the collection of debt in excess of 90 days has been prioritised
as a pertinent strategy in increasing the Municipality’s cash levels. During April 2016, 718 households
(Kolomela) 350 (Assmang) will change from conventional water meters to a pre-paid water system that
will help with the cash flow of the Municipality.
The Municipality needs to change all water meters to smart water meters. The municipality will not be
sustainable if we do not collect all the outstanding debt through the pre-paid water system.
Asset Management, Infrastructure Investment and Funding Policy
A proxy for asset consumption can be considered the level of depreciation each asset incurs on an annual
basis. Preserving the investment in existing infrastructure needs to be considered a significant strategy in
ensuring the future sustainability of infrastructure and the Municipality’s revenue base. Within the
framework, the need for asset renewal was considered a priority and hence the capital programme was
determined based on renewal of current assets versus new asset construction.
Further, continued improvements in technology generally allows many assets to be renewed at a lesser
‘real’ cost than the original construction cost. Therefore, it is considered prudent to allow for a slightly
lesser continual level of annual renewal than the average annual depreciation. The Asset Management
Policy is therefore considered a strategic guide in ensuring a sustainable approach to asset renewal,
repairs and maintenance and is utilised as a guide to the selection and prioritisation of individual capital
projects. In addition the policy prescribes the accounting and administrative policies and procedures
relating to property, plant and equipment (fixed assets).
Budget Adjustment Policy
The adjustments budget process is governed by various provisions in the MFMA and is aimed at instilling
and establishing an increased level of discipline, responsibility and accountability in the financial
management practices of municipalities. To ensure that the Municipality continues to deliver on its core
mandate and achieves its developmental goals, the mid-year review and adjustment budget process will
be utilised to ensure that underperforming functions are identified and funds redirected to performing
functions.
Supply Chain Management Policy
135
The Supply Chain Management Policy was workshop by Council for approval during March/April 2016.
An amended policy will be considered by Council in due course of which the amendments will be
extensively consulted on.
Budget and Virement Policy
The Budget and Virement Policy aims to empower senior managers with an efficient financial and
budgetary amendment and control system to ensure optimum service delivery within the legislative
framework of the MFMA and the Municipality’s system of delegations. The Budget and Virement Policy
was workshop by council for approval during April 2016. All policies were workshopped and review in the 2019/20 Financial Year
Cash Management and Investment Policy
The Municipality’s Cash Management and Investment Policy was approved by Council. The aim of the
policy is to ensure that the Municipality’s surplus cash and investments are adequately managed,
especially the funds set aside for the cash backing of certain reserves. The policy details the minimum
cash and cash equivalents required at any point in time and introduces time frames to achieve certain
benchmarks.
Tariff Policies
The Municipality’s tariff policies provide a broad framework within which the Council can determine fair,
transparent and affordable charges that also promote sustainable service delivery. The policies have
been approved on various dates and a consolidated tariff policy is envisaged to be compiled for ease of
administration and implementation of the next two years.
All the above policies are available on the Municipality’s website, as well as the following budget related
policies:
• Property Rates Policy (Reviewed during 2013);
• Funding and Reserves Policy;
• Borrowing Policy;
• Budget Policy; and
• Basic Social Services Package (Indigent Policy);
• Commitment Policy;
• Contingent Liability/Asset Policy;
• Events after reporting Date;
• Related Party Policy;
• Virement Policy
• Travel and Subsistence Policy;
• Sharing of responsibilities Policies.
Overview of budget assumptions
External factors
136
Domestically, after five years of strong growth, during which lot of jobs were created, our economy shrank
fast and thousands of people lost their jobs. It is expected that recovery from this deterioration will be
slow and uneven and that growth for 2020/21 will minimal with a slightly better growth in the outer years.
Owing to the economic slowdown, financial resources are limited due to reduced payment levels by
consumers. This has resulted in declining cash inflows, which has necessitated restrained expenditure to
ensure that cash outflows remain within the affordability parameters of the Municipality’s finances.
General inflation outlook and its impact on the municipal activities
There are five key factors that have been taken into consideration in the compilation of the 2020/21
MTREF:
• National Government macro-economic targets;
• The general inflationary outlook and the impact on Municipality’s residents and businesses;
• The impact of municipal cost drivers;
• The increase in prices for bulk electricity; and
• The increase in the cost of remuneration.
Credit rating outlook
There is no credit rating for Tsantsabane Municipality.
Interest rates for borrowing and investment of funds
The municipality did not budget for any loan funding during the 2020/21 financial year. All outstanding
borrowing (DBSA) was settled during September 2016. It is expected that interest rates will not be
adjusted during the MTREF period.
Collection rate for revenue services
The base assumption is that tariff and rating increases will increase at a rate slightly higher that CPI over
the long term. It is also assumed that current economic conditions, and relatively controlled inflationary
conditions, will continue for the forecasted term.
The rate of revenue collection is currently expressed as a percentage (95 per cent) of annual billings.
Cash flow is assumed to be 95 per cent of billings. The performance of any increased collections or
arrear collections will however only be considered a source of additional cash in-flow once the
performance has been carefully monitored.
Growth or decline in tax base of the municipality
Debtors revenue is assumed to increase at a rate that is influenced by the consumer debtors collection
rate, tariff/rate pricing, real growth rate of the Municipality, household formation growth rate and the poor
household change rate.
Household formation is the key factor in measuring municipal revenue and expenditure growth, as
servicing ‘households’ is a greater municipal service factor than servicing individuals. Household
formation rates are assumed to convert to household dwellings. In addition, the change in the number of
poor households influences the net revenue benefit derived from household formation growth, as it
137
assumes that the same costs incurred for servicing the household exist, but that no consumer revenue is
derived as the ‘poor household’ limits consumption to the level of free basic services.
Salary increases
There is a collective agreement on salary increases in place for the budget year, and the guidance of
6,25% increase as contained in Circular 86 of National Treasury was not used to budget accordingly. We
budget for an increase of 6,25%.
Impact of national, provincial and local policies
Integration of service delivery between national, provincial and local government is critical to ensure
focussed service delivery and in this regard various measures were implemented to align IDPs, provincial
and national strategies around priority spatial interventions. In this regard, the following national priorities
form the basis of all integration initiatives:
• Creating jobs;
• Enhancing education and skill development;
• Improving Health services;
• Rural development and agriculture; and
• Fighting crime and corruption.
To achieve these priorities integration mechanisms are in place to ensure integrated planning and
execution of various development programs. The focus will be to strengthen the link between policy
priorities and expenditure thereby ensuring the achievement of the national, provincial and local
objectives.
Ability of the municipality to spend and deliver on the programmes
It is estimated that a spending rate of at least 75 per cent is achieved on operating expenditure and 80 per
cent on the capital programme for the 2018/19 MTREF of which performance has been factored into the
cash flow budget.
Overview of budget funding
Medium-term outlook: operating revenue
The following table is a breakdown of the operating revenue over the medium-term:
138
Breakdown of operating revenue over the 2020/21 MTREF
Tariff setting plays a major role in ensuring desired levels of revenue. Getting tariffs right assists in the
compilation of a credible and funded budget. The Municipality derives most of its operational revenue
from the provision of goods and services such as electricity and solid waste removal, property rates,
operating and capital grants from organs of state and other minor charges (such as building plan fees,
licenses and permits etc).
The revenue strategy is a function of key components such as:
• Growth in the Municipality and economic development;
• Revenue management and enhancement;
• Achievement of a 95 per cent annual collection rate for consumer revenue;
NC085 Tsantsabane - Table A4 Budgeted Financial Performance (revenue and expenditure)
Description Ref 2016/17 2017/18 2018/19
R thousand 1Audited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Pre-audit
outcome
Budget Year
2020/21
Budget Year
+1 2021/22
Budget Year
+2 2022/23
Revenue By Source
Property rates 2 29,025 27,652 27,421 80,000 80,000 80,000 – 62,109 64,966 67,955
Serv ice charges - electricity rev enue 2 34,799 39,694 47,408 57,440 57,440 57,440 – 61,879 64,725 67,703
Serv ice charges - w ater rev enue 2 17,210 15,795 14,790 19,765 19,765 19,765 – 21,511 22,501 23,536
Serv ice charges - sanitation rev enue 2 26,662 19,755 21,839 24,340 28,207 28,207 – 22,793 24,799 25,940
Serv ice charges - refuse rev enue 2 11,222 11,044 13,391 11,305 15,400 15,400 – 14,873 16,312 17,063
Rental of facilities and equipment 419 492 428 258 428 428 – 593 620 649
Interest earned - ex ternal inv estments 1,385 924 1,131 693 693 693 – 724 757 792
Interest earned - outstanding debtors – – – – – – – – – 0
Div idends receiv ed – – – – – – – – – 0
Fines, penalties and forfeits 574 332 417 631 631 631 – 662 692 724
Licences and permits 1,801 1,814 1,287 547 547 547 – 569 596 623
Agency serv ices – – – – – – – – – 0
Transfers and subsidies 43,063 37,670 42,244 96,181 96,181 96,181 – 52,529 57,058 63,423
Other rev enue 2 124 1,626 1,275 422 1,150 1,150 – 2,746 2,872 3,004
Gains – 950 – 25,000 25,000 25,000 – 7,104 7,431 7,773
Total Revenue (excluding capital transfers
and contributions)
166,284 157,749 171,631 316,581 325,442 325,442 – 248,093 263,330 279,184
Expenditure By Type
Employ ee related costs 2 69,751 69,810 72,891 92,351 80,028 80,028 – 88,408 93,933 99,804
Remuneration of councillors 4,475 5,270 5,517 5,756 5,756 5,756 – 5,807 6,116 6,498
Debt impairment 3 46,401 9,726 59,167 30,000 30,000 30,000 – 31,350 32,792 34,301
Depreciation & asset impairment 2 32,373 34,429 36,426 17,877 17,877 17,877 – 18,682 19,541 20,440
Finance charges 6,837 15,469 16,271 7,365 2,365 2,365 – 2,471 2,585 2,704
Bulk purchases 2 38,599 59,499 60,336 64,338 60,338 60,338 – 64,109 67,058 70,142
Other materials 8 3,052 914 2,019 2,630 2,630 2,630 – 2,749 2,875 3,007
Contracted serv ices 13,494 18,138 22,569 10,150 10,150 10,150 – 16,079 16,819 17,593
Transfers and subsidies – – – – – – – – – –
Other ex penditure 4, 5 18,609 15,675 20,179 20,910 20,910 20,910 – 17,892 18,715 19,576
Losses – – – – – – – – – –
Total Expenditure 233,590 228,928 295,375 251,378 230,055 230,055 – 247,547 260,434 274,065
Surplus/(Deficit) (67,306) (71,179) (123,744) 65,204 95,388 95,388 – 546 2,896 5,119
Transfers and subsidies - capital (monetary
allocations) (National / Prov incial and District) 27,018 12,530 8,555 14,299 14,299 14,299 – 32,240 18,131 21,368
Transfers and subsidies - capital (monetary
allocations) (National / Prov incial Departmental
Agencies, Households, Non-profit Institutions,
Priv ate Enterprises, Public Corporatons, Higher
Educational Institutions) 6 –
Transfers and subsidies - capital (in-kind - all) – 16,600 – – – – – 8,652 8,652 8,652
Surplus/(Deficit) after capital transfers &
contributions
(40,288) (42,050) (115,189) 79,502 109,687 109,687 – 41,438 29,679 35,138
Tax ation – – – – – – – – – –
Surplus/(Deficit) after taxation (40,288) (42,050) (115,189) 79,502 109,687 109,687 – 41,438 29,679 35,138
Attributable to minorities – – – – – – – – – –
Surplus/(Deficit) attributable to municipality (40,288) (42,050) (115,189) 79,502 109,687 109,687 – 41,438 29,679 35,138
Share of surplus/ (deficit) of associate 7 – – – – – – – – – –
Surplus/(Deficit) for the year (40,288) (42,050) (115,189) 79,502 109,687 109,687 – 41,438 29,679 35,138
2020/21 Medium Term Revenue &
Expenditure FrameworkCurrent Year 2019/20
139
• National Treasury guidelines;
• Electricity tariff increases within the National Electricity Regulator of South Africa
(NERSA) approval;
• Achievement of full cost recovery of specific user charges;
• Determining tariff escalation rate by establishing/calculating revenue requirements;
• The Property Rates Policy in terms of the Municipal Property Rates Act, 2004 (Act 6 of
2004) (MPRA), and • And the ability to extend new services and obtain cost recovery levels.
The above principles guide the annual increase in the tariffs charged to the consumers and the ratepayers
aligned to the economic forecasts.
Investment revenue contributes significantly to the revenue base of the Municipality. It needs to be noted
that these allocations have been conservatively estimated and as part of the cash backing of reserves and
provisions. The actual performance against budget will be carefully monitored. Any variances in this
regard will be addressed as part of the mid-year review and adjustments budget.
The tables below provide detail investment information and investment particulars by maturity.
MBRR SA15 – Detail Investment Information
MBRR SA16 – Investment particulars by maturity
None
Cash Flow Management
Cash flow management and forecasting is a critical step in determining if the budget is funded over the
medium-term. The table below is consistent with international standards of good financial management
NC085 Tsantsabane - Supporting Table SA15 Investment particulars by type
2016/17 2017/18 2018/19
Audited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Budget Year
2020/21
Budget Year
+1 2021/22
Budget Year
+2 2022/23
R thousand
Parent municipality
Securities - National Gov ernment
Listed Corporate Bonds
Deposits - Bank 8,973 11,544 – 7,000 – – 8,200 8,569 8,955
Deposits - Public Inv estment Commissioners – –
Deposits - Corporation for Public Deposits
Bankers Acceptance Certificates
Negotiable Certificates of Deposit - Banks
Guaranteed Endow ment Policies (sinking)
Repurchase Agreements - Banks
Municipal Bonds
Municipality sub-total 1 8,973 11,544 – 7,000 – – 8,200 8,569 8,955
Entities
Securities - National Gov ernment
Listed Corporate Bonds
Deposits - Bank
Deposits - Public Inv estment Commissioners
Deposits - Corporation for Public Deposits
Bankers Acceptance Certificates
Negotiable Certificates of Deposit - Banks
Guaranteed Endow ment Policies (sinking)
Repurchase Agreements - Banks
Entities sub-total – – – – – – – – –
Consolidated total: 8,973 11,544 – 7,000 – – 8,200 8,569 8,955
Current Year 2019/202020/21 Medium Term Revenue &
Expenditure Framework
RefInvestment type
140
practice and also improves understand ability for councillors and management. Some specific features
include:
• Clear separation of receipts and payments within each cash flow category; • Clear separation of capital and operating receipts from government, which also enables cash
from ‘Ratepayers and other’ to be provide for as cash inflow based on actual performance. In other words the actual collection rate of billed revenue., and
• Separation of borrowing and loan repayments (no set-off), to assist with MFMA compliance assessment regarding the use of long term borrowing (debt).
MBRR Table A7 - Budget cash flow statement
141
Cash Backed Reserves/Accumulated Surplus Reconciliation
This following table does not meet the requirements of MFMA Circular 42 which deals with the funding of
a municipal budget in accordance with sections 18 and 19 of the MFMA. The table seeks to answer three
key questions regarding the use and availability of cash:
• What are the predicted cash and investments that are available at the end of the budget
year?
• How are those funds used?
• What is the net funds available or funding shortfall?
A surplus would indicate the cash-backed accumulated surplus that was/is available. A shortfall
(applications > cash and investments) is indicative of non-compliance with section 18 of the MFMA
requirement that the municipality’s budget must be ‘funded’. Non-compliance with section 18 is assumed
because a shortfall would indirectly indicate that the annual budget is not appropriately funded (budgeted
spending is greater than funds available or to be collected). It is also important to analyse trends to
understand the consequences, e.g. the budget year might indicate a small surplus situation, which in itself
NC085 Tsantsabane - Table A7 Budgeted Cash Flows
Description Ref 2016/17 2017/18 2018/19
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Pre-audit
outcome
Budget Year
2020/21
Budget Year
+1 2021/22
Budget Year
+2 2022/23
CASH FLOW FROM OPERATING ACTIVITIES
Receipts
Property rates 23,649 27,261 22,051 68,000 68,000 68,000 – 40,371 42,228 44,170
Serv ice charges 64,276 85,464 95,219 93,293 93,293 93,293 – 78,687 83,420 87,257
Other rev enue 2,960 4,373 3,447 1,859 1,859 1,859 – 2,970 3,107 3,250
Transfers and Subsidies - Operational 1 35,328 49,854 46,122 48,090 48,090 48,090 – 52,529 57,058 63,423
Transfers and Subsidies - Capital 1 27,758 8,939 9,221 14,299 14,299 14,299 – – – –
Interest 1,385 924 1,131 693 693 693 – 724 757 792
Div idends – – – – – – – – – –
Payments
Suppliers and employ ees (147,980) (169,305) (183,511) (196,136) (179,813) (179,813) – (180,686) (190,352) (200,604)
Finance charges (6,837) (15,469) (16,271) (7,365) (2,365) (2,365) – (28,215) (29,513) (30,870)
Transfers and Grants 1 – – – – – – – (14,471) (15,137) (15,833)
NET CASH FROM/(USED) OPERATING ACTIVITIES 540 (7,959) (22,591) 22,733 44,056 44,056 – (48,091) (48,432) (48,415)
CASH FLOWS FROM INVESTING ACTIVITIES
Receipts
Proceeds on disposal of PPE – – 571 – – – – 32,240 18,131 21,368 – – – – – – –
Decrease (increase) in non-current receiv ables – – – – – – – – – –
Decrease (increase) in non-current inv estments – – – – – – – – – –
Payments
Capital assets (21,790) (14,695) (16,116) – – – – (32,240) (18,131) (21,368)
NET CASH FROM/(USED) INVESTING ACTIVITIES (21,790) (14,695) (15,545) – – – – – – –
CASH FLOWS FROM FINANCING ACTIVITIES
Receipts
Short term loans – – 7,464 – – – – – – –
Borrow ing long term/refinancing – – – – – – – – – –
Increase (decrease) in consumer deposits (2,095) (166) (33) (85) (85) (85) – – – –
Payments
Repay ment of borrow ing (2,668) (5,295) – – – – – – – –
NET CASH FROM/(USED) FINANCING ACTIVITIES (4,763) (5,461) 7,431 (85) (85) (85) – – – –
NET INCREASE/ (DECREASE) IN CASH HELD (26,013) (28,115) (30,705) 22,648 43,971 43,971 – (48,091) (48,432) (48,415)
Cash/cash equiv alents at the y ear begin: 2 – – – – – – – – (48,091) (96,524)
Cash/cash equiv alents at the y ear end: 2 (26,013) (28,115) (30,705) 22,648 43,971 43,971 – (48,091) (96,524) (144,939)
2020/21 Medium Term Revenue &
Expenditure FrameworkCurrent Year 2019/20
142
is an appropriate outcome, but if in prior years there were much larger surpluses then this negative trend
may be a concern that requires closer examination.
Funding compliance measurement
National Treasury requires that the municipality assess its financial sustainability against fourteen different
measures that look at various aspects of the financial health of the municipality.
Cash/cash equivalent position
The Municipality’s forecast cash position was discussed as part of the budgeted cash flow statement. A
‘positive’ cash position, for each year of the MTREF would generally be a minimum requirement, subject
to the planned application of these funds such as cash-backing of reserves and working capital
requirements.
If the municipality’s forecast cash position is negative, for any year of the medium term budget, the budget
is very unlikely to meet MFMA requirements or be sustainable and could indicate a risk of non-compliance
with section 45 of the MFMA which deals with the repayment of short term debt at the end of the financial
year.
Cash plus investments less application of funds
The purpose of this measure is to understand how the municipality has applied the available cash and
investments as identified in the budgeted cash flow statement. The detail reconciliation of the cash
backed reserves/surpluses is contained in the previous page. The reconciliation is intended to be a
relatively simple methodology for understanding the budgeted amount of cash and investments available
with any planned or required applications to be made. This has been extensively discussed above.
Monthly average payments covered by cash or cash equivalents
The purpose of this measure is to understand the level of financial risk should the municipality
be under stress from a collection and cash in-flow perspective. Regardless of the annual cash position an
evaluation should be made of the ability of the Municipality to meet monthly payments as and when they
fall due. It is especially important to consider the position should the municipality be faced with an
unexpected disaster that threatens revenue collection such as rate boycotts.
Surplus/deficit excluding depreciation offsets
The main purpose of this measure is to understand if the revenue levels are sufficient to conclude that the
community is making a sufficient contribution for the municipal resources consumed each year. An
‘adjusted’ surplus/deficit is achieved by offsetting the amount of depreciation related to externally funded
assets. Municipalities need to assess the result of this calculation taking into consideration its own
circumstances and levels of backlogs. If the outcome is a deficit, it may indicate that rates and service
charges are insufficient to ensure that the community is making a sufficient contribution toward the
economic benefits they are consuming over the medium term.
It needs to be noted that a surplus or deficit does not necessarily mean that the budget is funded from a cash flow perspective.
Property Rates/service charge revenue as a percentage increase less macro inflation target
The purpose of this measure is to understand whether the municipality is contributing appropriately to the
achievement of national inflation targets. This measure is based on the increase in ‘revenue’, which will
include both the change in the tariff as well as any assumption about real growth such as new property
development, services consumption growth etc.
Cash receipts as a percentage of ratepayer and other revenue
This factor is a macro measure of the rate at which funds are ‘collected’. This measure is intended to
analyse the underlying assumed collection rate for the MTREF to determine the relevance and credibility
of the budget assumptions contained in the budget
143
Debt impairment expense as a percentage of billable revenue
This factor measures whether the provision for debt impairment is being adequately funded and is based
on the underlying assumption that the provision for debt impairment (doubtful and bad debts) has to be
increased to offset under-collection of billed revenues. The provision has been appropriated at 5,79 per
cent over the MTREF. Considering the debt incentive scheme and the municipality’s revenue
management strategy’s objective to collect outstanding debtors of 90 days, the provision is well within the
accepted leading practice.
Capital payments percentage of capital expenditure
The purpose of this measure is to determine whether the timing of payments has been taken into
consideration when forecasting the cash position. It can be seen that a 100 per cent payments has been
factored into the cash position forecasted over the entire financial year.
Transfers/grants revenue as a percentage of Government transfers/grants available
The purpose of this measurement is mainly to ensure that all available transfers from national and
provincial government have been budgeted for. A percentage less than 100 per cent could indicate that
not all grants as contained in the Division of Revenue Act (DoRA) have been budgeted for. The
Municipality has budgeted for all transfers and therefore no percentage is being shown as outstanding.
Consumer debtors change (Current and Non-current)
The purpose of these measures are to ascertain whether budgeted reductions in outstanding debtors are
realistic. There are 2 measures shown for this factor; the change in current debtors and the change in
long term receivables, both from the Budgeted Financial Position.
Repairs and maintenance expenditure level
This measure must be considered important within the context of the funding measures criteria because a
trend that indicates insufficient funds are being committed to asset repair could also indicate that the
overall budget is not credible and/or sustainable in the medium to long term because the revenue budget
is not being protected. Details of the Municipality’s strategy pertaining to asset management and repairs
and maintenance is contained elsewhere in this report.
Asset renewal/rehabilitation expenditure level
This measure has a similar objective to aforementioned objective relating to repairs and maintenance. A
requirement of the detailed capital budget (since MFMA Circular 28 which was issued in December 2005)
is to categorise each capital project as a new asset or a renewal/rehabilitation project. The objective is to
summarise and understand the proportion of budgets being provided for new assets and also asset
sustainability. A declining or low level of renewal funding may indicate that a budget is not credible and/or
sustainable and future revenue is not being protected, similar to the justification for ‘repairs and
maintenance’ budgets. Further details in this regard are contained elsewhere in this report.
Expenditure on grants and reconciliations of unspent funds
MBRR SA19 - Expenditure on transfers and grant programmes
144
Councillor and employee benefits
MBRR SA22 - Summary of councillor and staff benefits
NC085 Tsantsabane - Supporting Table SA22 Summary councillor and staff benefits
Summary of Employee and Councillor remuneration Ref 2016/17 2017/18 2018/19
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Budget Year
2020/21
Budget Year
+1 2021/22
Budget Year
+2 2022/23
1 A B C D E F G H I
Councillors (Political Office Bearers plus Other)
Basic Salaries and Wages 4,475 5,270 5,517 3,871 3,871 3,871 2,675 2,843 3,020
Pension and UIF Contributions – – – – – – 647 604 922
Medical Aid Contributions – – – – – – – – –
Motor Vehicle Allowance – – – – – – – – –
Cellphone Allowance – – – 577 577 577 444 472 501
Housing Allowances – – – – – – – – –
Other benefits and allowances – – – 1,308 1,308 1,308 906 963 1,023
Sub Total - Councillors 4,475 5,270 5,517 5,756 5,756 5,756 4,673 4,882 5,467
% increase 4 17.8% 4.7% 4.3% – – (18.8%) 4.5% 12.0%
Senior Managers of the Municipality 2
Basic Salaries and Wages 23,388 20,943 21,867 3,904 3,489 3,489 3,957 4,204 4,467
Pension and UIF Contributions – – – 161 160 160 13 12 13
Medical Aid Contributions – – – 50 50 50 – – 0
Overtime – – – – – – – – 0
Performance Bonus – – – 126 126 126 56 60 64
Motor Vehicle Allowance 3 – – – 1,016 1,010 1,010 1,148 1,220 1,296
Cellphone Allowance 3 – – – 123 111 111 123 130 138
Housing Allowances 3 – – – 97 97 97 86 92 98
Other benefits and allowances 3 – – – 8 8 8 6 7 7
Payments in lieu of leave – – – – – – – – 0
Long service awards – – – – – – – – 0
Post-retirement benefit obligations 6 – – – – – – – – –
Sub Total - Senior Managers of Municipality 23,388 20,943 21,867 5,485 5,052 5,052 5,390 5,725 6,082
% increase 4 (10.5%) 4.4% (74.9%) (7.9%) – 6.7% 6.2% 6.3%
Other Municipal Staff
Basic Salaries and Wages 44,445 46,845 47,627 47,297 42,896 42,896 46,561 49,472 51,385
Pension and UIF Contributions 1,918 2,022 3,397 8,816 8,027 8,027 8,450 8,978 9,327
Medical Aid Contributions – – – 3,608 3,246 3,246 3,784 4,020 4,125
Overtime – – – 11,032 5,760 5,760 11,489 12,207 12,904
Performance Bonus – – – 3,831 3,501 3,501 3,693 3,923 4,070
Motor Vehicle Allowance 3 – – – 4,058 3,628 3,628 4,107 4,364 4,637
Cellphone Allowance 3 – – – 90 88 88 637 677 719
Housing Allowances 3 – – – 2,917 2,753 2,753 2,705 2,874 3,004
Other benefits and allowances 3 – – – 4,905 4,766 4,766 1,441 1,532 1,621
Payments in lieu of leave – – – – – – – – 0
Long service awards – – – 311 311 311 283 301 306
Post-retirement benefit obligations 6 – – – – – – – – 0
Sub Total - Other Municipal Staff 46,363 48,867 51,023 86,866 74,976 74,976 83,150 88,347 92,098
% increase 4 5.4% 4.4% 70.2% (13.7%) – 10.9% 6.3% 4.2%
Total Parent Municipality 74,226 75,079 78,408 98,108 85,784 85,784 93,213 98,954 103,647
1.1% 4.4% 25.1% (12.6%) – 8.7% 6.2% 4.7%
Current Year 2019/202020/21 Medium Term Revenue & Expenditure
Framework
145
MBRR SA23 - Salaries, allowances and benefits (political office bearers/councillors/ senior
managers)
Monthly targets for revenue, expenditure and cash flow
NC085 Tsantsabane - Supporting Table SA23 Salaries, allowances & benefits (political office bearers/councillors/senior managers)
Disclosure of Salaries, Allowances & Benefits 1. RefContribution
In-kind
benefits
Total
Package
Rand per annum 1. 2.
Councillors 3
Speaker 4 1 484,103 226,430 710,533
Chief Whip 195,458 189,384 384,842
Ex ecutiv e May or 1 617,628 258,283 875,911
Deputy Ex ecutiv e May or –
Ex ecutiv e Committee 2 935,271 414,922 1,350,193
Total for all other councillors 1,368,203 806,688 2,174,891
Total Councillors 8 4 3,600,663 – 1,895,707 5,496,370
Senior Managers of the Municipality 5
Municipal Manager (MM) 1 793,505 349,378 1,142,883
Chief Finance Officer 1 886,355 28,422 914,777
–
–
–
–
List of each offical with packages >= senior manager
Director community serv ices 1 674,960 502,953 1,177,913
Director corporate serv ices 1 772,941 375,191 1,148,132
Director Technical serv ices 1 828,750 170,908 999,658
–
–
–
–
–
–
–
–
–
–
Total Senior Managers of the Municipality 8,10 5 3,956,511 – 1,426,852 – 5,383,363
No.
AllowancesSalary Performance
Bonuses
146
MBRR SA29 - Budgeted monthly capital expenditure (standard classification)
NC085 Tsantsabane - Supporting Table SA29 Budgeted monthly capital expenditure (functional classification)
Description Ref
R thousand July August Sept. October Nov. Dec. January Feb. March April May JuneBudget Year
2020/21
Budget Year
+1 2021/22
Budget Year
+2 2022/23
Capital Expenditure - Functional 1
Governance and administration 83 83 83 83 83 83 83 83 83 83 83 1,150 2,067 2,162 2,262
Executive and council 17 17 17 17 17 17 17 17 17 17 17 17 200 209 219
Finance and administration 67 67 67 67 67 67 67 67 67 67 67 1,133 1,867 1,953 2,043
Internal audit – – – – – – – – – – – – – – –
Community and public safety 130 130 130 130 130 130 130 130 130 130 130 130 1,556 1,628 1,702
Community and social services 116 116 116 116 116 116 116 116 116 116 116 116 1,391 1,455 1,522
Sport and recreation 14 14 14 14 14 14 14 14 14 14 14 14 165 173 181
Public safety – – – – – – – – – – – – – – –
Housing – – – – – – – – – – – – – – –
Health – – – – – – – – – – – – – – –
Economic and environmental services – – – – – – – – – – – – – – –
Planning and development – – – – – – – – – – – – – – –
Road transport – – – – – – – – – – – – – – –
Environmental protection – – – – – – – – – – – – – – –
Trading services 2,557 2,557 2,557 2,557 2,557 2,557 2,557 2,557 2,557 2,557 2,557 18,768 46,892 33,059 36,584
Energy sources 650 650 650 650 650 650 650 650 650 650 650 (1,150) 6,000 6,276 6,565
Water management 1,907 1,907 1,907 1,907 1,907 1,907 1,907 1,907 1,907 1,907 1,907 19,918 40,892 26,783 30,020
Waste water management – – – – – – – – – – – – – – –
Waste management – – – – – – – – – – – – – – –
Other – – – – – – – – – – – – – – –
Total Capital Expenditure - Functional 2 2,770 2,770 2,770 2,770 2,770 2,770 2,770 2,770 2,770 2,770 2,770 20,048 50,515 36,849 40,548
Funded by:
National Government 1,336 1,336 1,336 1,336 1,336 1,336 1,336 1,336 1,336 1,336 1,336 17,547 32,240 18,131 21,368
Provincial Government – – – – – – – – – – – – – – –
District Municipality – – – – – – – – – – – – – – – Transfers and subsidies - capital (monetary
allocations) (National / Provincial Departmental
Agencies, Households, Non-profit Institutions,
Private Enterprises, Public Corporatons, Higher
Educational Institutions) 721 721 721 721 721 721 721 721 721 721 721 721 8,652 8,652 8,652
Transfers recognised - capital 2,057 2,057 2,057 2,057 2,057 2,057 2,057 2,057 2,057 2,057 2,057 18,268 40,892 26,783 30,020
Borrowing – – – – – – – – – – – – – – –
Internally generated funds 713 713 713 713 713 713 713 713 713 713 713 1,780 9,623 10,066 10,529
Total Capital Funding 2,770 2,770 2,770 2,770 2,770 2,770 2,770 2,770 2,770 2,770 2,770 20,048 50,515 36,849 40,548
Budget Year 2020/21Medium Term Revenue and Expenditure
Framework
Contracts having future budgetary implications
In terms of the Municipality’s Supply Chain Management Policy, no contracts are awarded beyond the medium-term revenue and expenditure framework (three years). In ensuring adherence to this contractual time frame limitation, all reports submitted to either the Bid Evaluation and Adjudication Committees must obtain formal financial comments from the Financial Management Division of the Treasury Department.
Capital expenditure details
The capital budget is attached as a separate document.
Legislation compliance status
Compliance with the MFMA implementation requirements have been substantially adhered to through the
following activities:
1. In year reporting
Reporting to National Treasury in electronic format was not fully complied with on a monthly basis.
Section 71 reporting to the Executive Mayor (within 10 working days) has improved. The CFO needs
to take Actions to comply with above. The Municipalities website is active as and needs to publish
the information on the Municipality’s website.
2. Internship programme
The Municipality is participating in the Municipal Financial Management Internship programme and
has employed five (5) interns undergoing training in various divisions of the Financial Services
Department.
3. Budget and Treasury Office
The Budget and Treasury Office has been established in accordance with the MFMA. Additional staff
needs to be appointed to help with the compilation of the budget, Treasury reports and the AFS.
4. Audit Committee
The term of office of the previous Audit Committee lapsed in November 2018. The vacancies has
been advertised, appointment will be made in the 2020/21 Financial year
5. Service Delivery and Implementation Plan
The draft SDBIP document is available and will be approved as required by the MFMA. The draft
SDBIP will be finalised after approval of the 2020/21 MTREF in June 2020 and will be directly aligned
and informed by the 2020/21 MTREF.
6. Annual Report
The 2019/20 Annual Report is compiled in terms of the MFMA and National Treasury requirements. The Oversight Committee needs to review the Annual Report and make recommendations to the Council. Council will consider the recommendations during the April 2021 council meeting.
7. MFMA Training
The MFMA training module in electronic format is presented at the Municipality’s internal centre and
training is on-going.
8. Policies
An amendment of the Municipal Property Rates Regulations as published in Government Notice 363 of 27
March 2009, was announced in Government Gazette 33016 on 12 March 2010. The ratios as prescribed
in the Regulations have been complied with.
