KSD Budget and Related KSD Budget and Related IssuesIssues

Presented by:Presented by:Clr B BodlaniClr B Bodlani - Acting Executive Mayor- Acting Executive Mayor

Vuyo Zitumane-Caretaker MMVuyo Zitumane-Caretaker MM

8 June 20078 June 2007

Introduction and BackgroundIntroduction and Background In March 2006 on advice received from the CFO In March 2006 on advice received from the CFO

the Executive Mayor wrote to the MEC for Local the Executive Mayor wrote to the MEC for Local Government requesting assistance with improving Government requesting assistance with improving the financial position of the municipality. MFMA the financial position of the municipality. MFMA section 135. section 135.

The MEC arranged with DPLG for a team from the The MEC arranged with DPLG for a team from the United Nations Development Program to provide United Nations Development Program to provide assistance and a Financial recovery program was assistance and a Financial recovery program was drawn up and approved by council. drawn up and approved by council.

The UNDP team were at KSD for the September The UNDP team were at KSD for the September 2006 to March 2007 period.2006 to March 2007 period.

In December 2006 the Municipal Manager’s In December 2006 the Municipal Manager’s contract was terminated.contract was terminated.

Introduction and Background cont.Introduction and Background cont.

During December 2006 and January 2007 KSD lost the During December 2006 and January 2007 KSD lost the services of its two senior finance officials.services of its two senior finance officials.

In early February 2007 the MEC for Local Government In early February 2007 the MEC for Local Government appointed a Caretaker MM for a period of six months.appointed a Caretaker MM for a period of six months.

Subsequent to this appointment a meeting was held in Subsequent to this appointment a meeting was held in Bisho between DHLG and TA; DPLG; National Treasury; Bisho between DHLG and TA; DPLG; National Treasury; Provincial Treasury; UNDP; and KSD to determine a way Provincial Treasury; UNDP; and KSD to determine a way forward.forward.

This group met with the council to outline the plan of action. This group met with the council to outline the plan of action. This plan was accepted by the council of the municipality.This plan was accepted by the council of the municipality.

The National Treasury deployed a municipal advisor to The National Treasury deployed a municipal advisor to work directly with the Caretaker MM to assist with financial work directly with the Caretaker MM to assist with financial issues and to commence implementing the MFMA.issues and to commence implementing the MFMA.

IDP/Budget ProcessesIDP/Budget Processes

The IDP/ Budget process this year faced a number of The IDP/ Budget process this year faced a number of challenges which had to be considered and addressed in a challenges which had to be considered and addressed in a very short period of time between the February 2007 and very short period of time between the February 2007 and the 31 May 2007 which was the day for the adoption of the the 31 May 2007 which was the day for the adoption of the budget.budget.

A budget time schedule was completed in February 2007.A budget time schedule was completed in February 2007. A draft IDP / Budget and Service Delivery and Budget A draft IDP / Budget and Service Delivery and Budget

Implementation Plan were tabled in council on the 31 Implementation Plan were tabled in council on the 31 March 2007.March 2007.

During the April / May period the council conducted its During the April / May period the council conducted its outreach program consulting the communities.outreach program consulting the communities.

The Budget and related policies were adopted by council The Budget and related policies were adopted by council on 31 May 2007.on 31 May 2007.

Equity in the Budget ProcessEquity in the Budget Process

After an intensive IDP and Budget Public Participation After an intensive IDP and Budget Public Participation Process, a Budget Committee made up of Councillors, Process, a Budget Committee made up of Councillors, Heads of Department, Municipal Manager, National Heads of Department, Municipal Manager, National Treasury Municipal Advisor and Finance Officials Treasury Municipal Advisor and Finance Officials scrutinised all requests together with the relevant Portfolio scrutinised all requests together with the relevant Portfolio Councillor and the HOD and agreement was reached on all Councillor and the HOD and agreement was reached on all budget allocations.budget allocations.

The Budget Committee, the Standing Finance Committee The Budget Committee, the Standing Finance Committee and the Mayoral Committee were provided with a and the Mayoral Committee were provided with a presentation of the budget figures. The allocations were presentation of the budget figures. The allocations were decided upon in an open and transparent manner involving decided upon in an open and transparent manner involving all levels within the municipality.all levels within the municipality.

The Budget 2007/2008 – Operating RevenueThe Budget 2007/2008 – Operating Revenue

The increases in tariffs and charges were considered in The increases in tariffs and charges were considered in light of the standard of services that have been provided to light of the standard of services that have been provided to the community over the past year and with also a view to the community over the past year and with also a view to funding resources for the improvement of these services in funding resources for the improvement of these services in the coming financial year. the coming financial year.

KSD will never survive if some hard decisions, for the KSD will never survive if some hard decisions, for the benefit of the community are not taken. It is a reality that benefit of the community are not taken. It is a reality that the level of services we are currently providing are not up the level of services we are currently providing are not up to the required level, and must be improved. to the required level, and must be improved.

We can only improve if we enter into a social contract with We can only improve if we enter into a social contract with the community which will ensure that we collect the the community which will ensure that we collect the required revenue that will enable us to provide the best required revenue that will enable us to provide the best services.services.

Operating Revenue IncreasesOperating Revenue Increases

Property Rates increase by average 12% to R67.9 mProperty Rates increase by average 12% to R67.9 m The electricity increase is 5.6% to R78.2 mThe electricity increase is 5.6% to R78.2 m Refuse Collection increases by 12% to R12.9 mRefuse Collection increases by 12% to R12.9 m The Council is to introduce a Fire Services Levy effective The Council is to introduce a Fire Services Levy effective

from 1 July 2007 with the following rates:from 1 July 2007 with the following rates:

Domestic property - R15 per monthDomestic property - R15 per month

Commercial & Gov property - R27 per monthCommercial & Gov property - R27 per month

Service Level AgreementsService Level Agreements

During the previous five years the municipality performed During the previous five years the municipality performed powers and functions that are competencies of other powers and functions that are competencies of other organs of state and for which the municipality did not organs of state and for which the municipality did not received adequate funding. received adequate funding.

During 2006 Service Level Agreements were prepared by During 2006 Service Level Agreements were prepared by the United Nations Development Programme (UNDP) for the United Nations Development Programme (UNDP) for each functions:each functions:

Primary Health Care Primary Health Care (Department of Health) (Department of Health) Municipal Health ServicesMunicipal Health Services (DHLG&TA) (DHLG&TA) Library ServicesLibrary Services (Dept of Arts & Culture) (Dept of Arts & Culture) Fire Fighting ServicesFire Fighting Services (DHLG&TA) (DHLG&TA) Disaster Management Services (DHLG&TA)Disaster Management Services (DHLG&TA) NATISNATIS (Department of Transport) (Department of Transport)

Service Level Agreements cont.Service Level Agreements cont. The funding required to carry out these functions is R25 The funding required to carry out these functions is R25

million per annum; however to date the agreements have million per annum; however to date the agreements have yet to be signed by the other organs of state.yet to be signed by the other organs of state.

The municipality is unable to continue to support these The municipality is unable to continue to support these functions without receiving upfront funding. functions without receiving upfront funding.

Accordingly if these agreements are not formally completed Accordingly if these agreements are not formally completed prior to the start of the 2008 budget year the municipality prior to the start of the 2008 budget year the municipality will have no other option but advise the relevant organs of will have no other option but advise the relevant organs of state that there are insufficient funds to continue supporting state that there are insufficient funds to continue supporting these competencies. these competencies.

The Caretaker MM has engaged the Provincial and The Caretaker MM has engaged the Provincial and National Treasury on this matter, and if their intervention National Treasury on this matter, and if their intervention does not yield results, the municipality will not have a does not yield results, the municipality will not have a balanced budget and as such will be forced to take drastic balanced budget and as such will be forced to take drastic action against the departments concerned.action against the departments concerned.

Debtors ArrearsDebtors Arrears

The council is to consider selling its debtors book of more The council is to consider selling its debtors book of more than R200m through an open tendering system.than R200m through an open tendering system.

The proceeds will be applied to service delivery orientated The proceeds will be applied to service delivery orientated and Local Economic Development projects.and Local Economic Development projects.

The proceeds are conservatively estimated at R10 m, for The proceeds are conservatively estimated at R10 m, for this financial year, although there are prospects to raise this financial year, although there are prospects to raise more.more.

The council adopted a Credit Control and Debt Collection The council adopted a Credit Control and Debt Collection Policy on 31 May 2007 which will be rigidly enforced so as Policy on 31 May 2007 which will be rigidly enforced so as to improve debt collection. to improve debt collection.

The budgeted debt collection rate is 97%.The budgeted debt collection rate is 97%.

Budgeted Operating Revenue 2007/2008 - Budgeted Operating Revenue 2007/2008 - SummarySummary

Budgeted revenue from Grants and Subsidies totals R88.7 Budgeted revenue from Grants and Subsidies totals R88.7 millionmillion

Total budgeted revenue for the 2007/2008 totals R305.8 Total budgeted revenue for the 2007/2008 totals R305.8 millionmillion

– A provision for doubtful debts has been budgeted at R5 million, A provision for doubtful debts has been budgeted at R5 million, which brings it to R300m.which brings it to R300m.

Operating Budget - Expenditure Operating Budget - Expenditure

This Council inherited a high level of personnel costs - 55% This Council inherited a high level of personnel costs - 55% of operating revenue for the 2007/2008 financial year. of operating revenue for the 2007/2008 financial year.

The result is the wider community is being deprived of The result is the wider community is being deprived of funds that should be used for road maintenance, electricity funds that should be used for road maintenance, electricity reticulation, refuse collection repairs, and to provide staff reticulation, refuse collection repairs, and to provide staff with the resources to perform their duties.with the resources to perform their duties.

With this level of funds being used for personnel costs With this level of funds being used for personnel costs there is only a minimal amount available for capital there is only a minimal amount available for capital purposes – R4.7 m for the 2007/2008 financial year. purposes – R4.7 m for the 2007/2008 financial year.

The Treasury guideline for personnel costs is in the vicinity The Treasury guideline for personnel costs is in the vicinity of 30% and the budgeted percentage for the 2008/2009 of 30% and the budgeted percentage for the 2008/2009 and 2009/2010 financial years is 53% and 48% and 2009/2010 financial years is 53% and 48% respectively.respectively.

Operating Budget – Expenditure cont.Operating Budget – Expenditure cont.

An effort has been made to increase the Repairs and An effort has been made to increase the Repairs and Maintenance budget and the allocation has increased from Maintenance budget and the allocation has increased from R5 m to R8.9 m in the 2007/2008 financial year. R5 m to R8.9 m in the 2007/2008 financial year.

There must be a concerted effort to increase the O&M There must be a concerted effort to increase the O&M allocation, as failure to service our assets results in allocation, as failure to service our assets results in dissatisfied communities, and huge costs for major repairs dissatisfied communities, and huge costs for major repairs and reconstruction.and reconstruction.

Operating Expenditure 2007/2008 - SummaryOperating Expenditure 2007/2008 - Summary

Personnel Costs Personnel Costs R166.7 millionR166.7 million General Expenses General Expenses R51.3 millionR51.3 million Bulk Electricity Bulk Electricity R42 millionR42 million Contracted Services Contracted Services R21.9 millionR21.9 million Repairs & MaintenanceRepairs & Maintenance R8.9 millionR8.9 million Bad Debt ProvisionBad Debt Provision R5mR5m

TOTAL OPEXTOTAL OPEX R295MR295M

Capital Budget 2007/2008Capital Budget 2007/2008 The Capital Budget is R137.9 m with funding as follows:The Capital Budget is R137.9 m with funding as follows: National Government GrantsNational Government Grants R64.8 mR64.8 m Provincial Government GrantsProvincial Government Grants R60.3 mR60.3 m Donations – Petro SADonations – Petro SA R8 mR8 m Internally Funded Internally Funded R4.7 mR4.7 m

– TOTAL CAPITALTOTAL CAPITAL R138 mR138 m The major capital projects for 2007/2008 are listed on page The major capital projects for 2007/2008 are listed on page

28 of the budget document.28 of the budget document. There is only R4.7 funded internally for capital and this There is only R4.7 funded internally for capital and this

must be turned around, as KSD cannot perpetually depend must be turned around, as KSD cannot perpetually depend on external grants for capital funding. on external grants for capital funding.

If we raise more revenue internally, we will be able to If we raise more revenue internally, we will be able to allocate funding to all wards on an equitable basis, as allocate funding to all wards on an equitable basis, as currently we cannot due to the fact that most of our capital currently we cannot due to the fact that most of our capital budget comes from other departments who also have budget comes from other departments who also have limited resources.limited resources.

IDP and Budget SynchronisationIDP and Budget Synchronisation The linkage between the budget and the IDP in terms of The linkage between the budget and the IDP in terms of

the budget figures is outlined on page 14 of the budget the budget figures is outlined on page 14 of the budget document and the basis for arriving at these figures is as document and the basis for arriving at these figures is as follows:follows:

The two votes of Executive and Council as well as Finance The two votes of Executive and Council as well as Finance and Asset Management have been allocated equally over and Asset Management have been allocated equally over all seven functions; therefore will not be indicated in all seven functions; therefore will not be indicated in isolation as they feature in all the key focus areas.isolation as they feature in all the key focus areas.

Corporate Services is allocated to Institution BuildingCorporate Services is allocated to Institution Building Community Services is allocated over Public Amenities and Community Services is allocated over Public Amenities and

Sports Facilities, and Cleansing and the Environment.Sports Facilities, and Cleansing and the Environment. Infrastructure is allocated to Service Delivery. Infrastructure is allocated to Service Delivery. The Urban Renewal Program is transferred to Planning, The Urban Renewal Program is transferred to Planning,

Social and Economic Development. Social and Economic Development. Planning, Social and Economic Development has been Planning, Social and Economic Development has been

allocated to Local Economic Development.allocated to Local Economic Development. Public Safety has been allocated to Public Safety.Public Safety has been allocated to Public Safety.

IDP and Budget Synchronisation cont.IDP and Budget Synchronisation cont.

The breakdown of the percentages of funds allocated to The breakdown of the percentages of funds allocated to each activity is as follows: each activity is as follows:

Service DeliveryService Delivery 38%38% Local Economic Development Local Economic Development 15%15% Public Amenities and Sports FacilitiesPublic Amenities and Sports Facilities 13%13% Public SafetyPublic Safety 11%11% RDP HousingRDP Housing 9%9% Cleansing the EnvironmentCleansing the Environment 8%8% Institutional BuildingInstitutional Building 6%6%

These allocations are to link up with the Service Delivery These allocations are to link up with the Service Delivery and Budget Implementation Plan to be approved during and Budget Implementation Plan to be approved during June 2007. June 2007.

Budget ConclusionBudget Conclusion

The reality is that not everyone and every ward will be The reality is that not everyone and every ward will be satisfied with the allocations; however there has been a satisfied with the allocations; however there has been a significant improvement from last year. This is why; some significant improvement from last year. This is why; some of the resolutions are proposing that during the budget of the resolutions are proposing that during the budget adjustment process, we should consider ward based adjustment process, we should consider ward based allocations, if our collection exceeds our projections. This is allocations, if our collection exceeds our projections. This is to ensure an equitable and even distribution of allocations.to ensure an equitable and even distribution of allocations.

This budget is balanced and credible. This budget is balanced and credible. Service delivery and standards will be enhanced by the Service delivery and standards will be enhanced by the

positive positive co-operation of everyone in ensuring that all co-operation of everyone in ensuring that all the policies and measures that have been put in place will the policies and measures that have been put in place will be embraced to make KSD better. be embraced to make KSD better.

MFMA ComplianceMFMA Compliance

The lack of capacity in the municipality and the difficulty in The lack of capacity in the municipality and the difficulty in employing officials with the appropriate experience and employing officials with the appropriate experience and qualifications is a significant limiting factor in the qualifications is a significant limiting factor in the implementation of the MFMA.implementation of the MFMA.

Currently the top three finance position CFO, GM-Budget, Currently the top three finance position CFO, GM-Budget, Manager - Accounting in the municipality are vacant and Manager - Accounting in the municipality are vacant and the Caretaker MM is due to complete her six months term the Caretaker MM is due to complete her six months term in July 2007.in July 2007.

In view of this it is going to be difficult to keep normal In view of this it is going to be difficult to keep normal operations on track leaving little time and resources for operations on track leaving little time and resources for MFMA implementation.MFMA implementation.

However the outputs that have been produced since However the outputs that have been produced since February have been consistent with MFMA requirements February have been consistent with MFMA requirements and are to provide a guide and benchmark for future efforts and are to provide a guide and benchmark for future efforts

MFMA Compliance cont.MFMA Compliance cont.

Major areas where there is MFMA Compliance:Major areas where there is MFMA Compliance:– The 2007/2008 budget and National Treasury The 2007/2008 budget and National Treasury

reportingreporting– The Service Delivery and Budget Implementation The Service Delivery and Budget Implementation

Plan for 2007/2008Plan for 2007/2008– The Section 57 performance agreementsThe Section 57 performance agreements– The 2005/2006 Annual ReportThe 2005/2006 Annual Report– Monthly electronic reporting to National and Provincial Monthly electronic reporting to National and Provincial

TreasuryTreasury– Supply Chain Management Supply Chain Management – Internal Audit Committee and UnitInternal Audit Committee and Unit

MFMA Compliance cont.MFMA Compliance cont.

Annual Financial Statements were in GRAP format for Annual Financial Statements were in GRAP format for 2005/2006 – submitted 15 days late to the AG’s Office2005/2006 – submitted 15 days late to the AG’s Office

Budget related policies were adopted 31 May 2007 – Credit Budget related policies were adopted 31 May 2007 – Credit Control and Debt Collection policy; Financial Management Control and Debt Collection policy; Financial Management policies; Indigent policy.policies; Indigent policy.

A primary bank account has been establishedA primary bank account has been established Section 71 reports are being completed monthly.Section 71 reports are being completed monthly.

There is a considerable amount of work to be completed There is a considerable amount of work to be completed with regard to MFMA implementation, however a start has with regard to MFMA implementation, however a start has been made and progress will continue at a rate determined been made and progress will continue at a rate determined by the capacity the municipality is able to attract. by the capacity the municipality is able to attract.

Conditional Grants 2006/2007Conditional Grants 2006/2007

The municipality received two major conditional grants The municipality received two major conditional grants during 2006/2007during 2006/2007

Municipal Infrastructure 2006/2007 Grant – this grant is Municipal Infrastructure 2006/2007 Grant – this grant is fully committed and spent prior to the end of the 2006/2007 fully committed and spent prior to the end of the 2006/2007 financial year. financial year.

Municipal Infrastructure 2007/2008 Grant – submitted Municipal Infrastructure 2007/2008 Grant – submitted projects have been approved and the grant is fully projects have been approved and the grant is fully committed.committed.

Provincial Health Grant – this grant was applied to Primary Provincial Health Grant – this grant was applied to Primary Health Care and Municipal Health Services. The grant is to Health Care and Municipal Health Services. The grant is to reimburse services performed by the KSD municipality and reimburse services performed by the KSD municipality and does not cover 100% of the costs.does not cover 100% of the costs.

Inter-governmental RelationsInter-governmental Relations

The municipality enjoys good working relationships with The municipality enjoys good working relationships with some government departments and endeavors to maintain some government departments and endeavors to maintain these for the benefit of all.these for the benefit of all.

There are two matters that have been discussed with other There are two matters that have been discussed with other spheres of government:spheres of government:

The first is whether or not the O R Tambo District The first is whether or not the O R Tambo District Municipality should continue to be the Water Service Municipality should continue to be the Water Service Authority and Provider in the KSD area. It is the contention Authority and Provider in the KSD area. It is the contention of the KSD municipality that the Water Service Provider of the KSD municipality that the Water Service Provider function should be returned to the local municipality as function should be returned to the local municipality as there are synergies, economies of scale, and practical there are synergies, economies of scale, and practical considerations that favour a return of this function to KSD. considerations that favour a return of this function to KSD.

Inter-governmental Relations cont.Inter-governmental Relations cont.

The timely receipt of provincial allocations as per section The timely receipt of provincial allocations as per section 36 of the MFMA is not being complied with and this makes 36 of the MFMA is not being complied with and this makes preparation of a realistic and credible budget extremely preparation of a realistic and credible budget extremely difficult. This is particularly so when the municipality is difficult. This is particularly so when the municipality is required to table a budget in council by the 31 March each required to table a budget in council by the 31 March each year and has not received any advice or indication as to year and has not received any advice or indication as to what the allocations from the provincial departments are. what the allocations from the provincial departments are.

Apart from these two issues the municipality enjoys cordial Apart from these two issues the municipality enjoys cordial working relationships with its co-partners in government.working relationships with its co-partners in government.

CAPACITY CONSTRAINTS AT CAPACITY CONSTRAINTS AT FINANCE DIVISIONFINANCE DIVISION

CFO position has been vacant since January 2007.CFO position has been vacant since January 2007. Processes to appoint have been exhausted twice after a Processes to appoint have been exhausted twice after a

recommended CFO was threatened not to take the positionrecommended CFO was threatened not to take the position CMM headhunting currently – 3CMM headhunting currently – 3rdrd attempt attempt General Manager- Budget position also vacant since General Manager- Budget position also vacant since

January 2007, and has not been filled due to financial January 2007, and has not been filled due to financial constraints, however will be filled during the new financial constraints, however will be filled during the new financial yearyear

On Revenue management and Asset Management, there On Revenue management and Asset Management, there is lack of skills and numbers for the required standards of is lack of skills and numbers for the required standards of management.management.

On expenditure Management, there is a shortage in On expenditure Management, there is a shortage in numbers, and this area is critical in terms of support that numbers, and this area is critical in terms of support that must be provided to service delivery units.must be provided to service delivery units.

CAPACITY CONSTRAINTS AT CAPACITY CONSTRAINTS AT INFRASTRUCTURE DIVISIONINFRASTRUCTURE DIVISION

There is less that 50% of the required personnel There is less that 50% of the required personnel within this division.within this division.

Most personnel at Project Management Unit are Most personnel at Project Management Unit are on a 3 year contract basis, as these positions on a 3 year contract basis, as these positions cannot be sustained, if the financial position of cannot be sustained, if the financial position of KSD is not improvedKSD is not improved

As a result of this, there is a risk of staff turnover As a result of this, there is a risk of staff turnover as job security is critical for someas job security is critical for some

There is a shortage of staff for road maintenance There is a shortage of staff for road maintenance programme and if roads are not maintained, the programme and if roads are not maintained, the result is more cost on major repairs and or result is more cost on major repairs and or reconstructionreconstruction

CAPACITY CONSTRAINTS AT CAPACITY CONSTRAINTS AT INFRASTRUCTURE DIVISIONINFRASTRUCTURE DIVISION

Plant and equipment is very old and not able to service Plant and equipment is very old and not able to service all areasall areas

There is a need for new plant in order to service all areas There is a need for new plant in order to service all areas equitableequitable

Estimated cost of all road repairs in KSDEstimated cost of all road repairs in KSDUrban RoadsUrban Roads– Rehabilitation/Researching/PotholeRehabilitation/Researching/Pothole R310MR310M– ReconstructionReconstruction R120MR120MRural RoadsRural Roads– Blading of existingBlading of existing R6MR6M– ReconstructionReconstruction R300MR300M

This would be spent over a period of 5 years, with co-sourcingThis would be spent over a period of 5 years, with co-sourcingOptions as there is no adequate capacity internallyOptions as there is no adequate capacity internally

CAPACITY CONSTRAINTS AT CAPACITY CONSTRAINTS AT INFRASTRUCTURE DIVISIONINFRASTRUCTURE DIVISION

Electricity blackouts are being attended to as there Electricity blackouts are being attended to as there is A R30m injection to upgrade sub-stations W.E.F is A R30m injection to upgrade sub-stations W.E.F 2007-20102007-2010

The substation at Hillcrest will be ready for The substation at Hillcrest will be ready for connection by end July 2007 connection by end July 2007

There is a further need to replace electrical cables There is a further need to replace electrical cables for reticulation to cater for the demand.for reticulation to cater for the demand.

Both managers at electricity are not registered and Both managers at electricity are not registered and do not have the adequate qualifications, however do not have the adequate qualifications, however one has resigned.one has resigned.

LED Unit is also under-capacitated because of LED Unit is also under-capacitated because of limited funding.limited funding.

GENERAL SERVICE DELIVERYGENERAL SERVICE DELIVERY Cleansing and waste management has improved Cleansing and waste management has improved

significantly over the last 3 months and this can significantly over the last 3 months and this can be sustained by adequate fundingbe sustained by adequate funding

A financial injection by National Treasury and A financial injection by National Treasury and Department of Transport has assisted KSD in Department of Transport has assisted KSD in repairing potholes.repairing potholes.

The Urban renewal programme is progressing The Urban renewal programme is progressing well well

Housing projects have been unblocked and have Housing projects have been unblocked and have recommenced.recommenced.

GENERAL SERVICE DELIVERYGENERAL SERVICE DELIVERY

Water & sanitation – delivered by ORT DM since Water & sanitation – delivered by ORT DM since 2005 – Level of service not adequate2005 – Level of service not adequate

UNFUNDED SERVICES DELIVERED e.g.UNFUNDED SERVICES DELIVERED e.g.(Primary health , fire services, social development (Primary health , fire services, social development services) - SERVICE LEEL AGREEMENTservices) - SERVICE LEEL AGREEMENT

Developing social & public Amenties such as public Developing social & public Amenties such as public libraries, sporting facilities is a huge challengelibraries, sporting facilities is a huge challenge

2010 funding has not been guaranteed, as a result 2010 funding has not been guaranteed, as a result KSD has developed a Private Investment Strategy KSD has developed a Private Investment Strategy for this project.for this project.

CONDITIONAL GRANTS CONDITIONAL GRANTS SPENDINGSPENDING

See attached spreadsheet on MIG funding.See attached spreadsheet on MIG funding.