1 Oversight: Select Committee on Finance Gert Sibande District Presented by: Mr. M.A. Ngcobo, Pr....

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Oversight: Select Committee on Finance

Gert Sibande District

Presented by:

Mr. M.A. Ngcobo, Pr. Tech. Eng, MSAICE, IMESA, FMWISA – (Municipal Manager)

Mr. A.Y. Singh, BCom (Acc), BCompt, CMA, IMFO – (Chief Financial Officer)

5 May 2008 Cape Town - Parliament

PRESENTATION OVERVIEW

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The Financial, Technical & Corporate Service quantitive and qualitative information pertains to Gert Sibande District Municipality, which renders support services to the following Municipalities:

• Albert Luthuli Local Municipality

• Dipaleseng Local Municipality

• Govan Mbeki Local Municipality

• Lekwa Local Municipality

• Mkhondo Local Municipality

• Msukaligwa Local Municipality

• Pixley Ka Seme Local Municipality

Total population : 985 632

Total area served by GSDM : 31 842 km²

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IntroBudget info current

financial yearComplianceWith MFMA

Policies & By-Laws

Relations in Collaboration with National & Provincial Depart.

Spending & PerformanceConditional Grants

Municipalities RelationsWith National & Provincial

Depart.

Capacity Constraints Monitoring ReportGSDM KPA’s1,2,3,4,5 & 6

Municipal IDP Alignment to PGDS

Service DeliveryService Delivery

Estimated Backlog

Service DeliveryWater Prov. Backlogs

Service DeliverySanitation Prov.

Backlogs

Service DeliverySummary of funding

Requirements

Service DeliveryRoles & Responsibilities

Service DeliveryWater Quality within

GSDM

Conclusion remarks

Re a lebogaThank youSiyabonga

BUDGET INFORMATION: REVENUE

Budget Adjustment Budget Actual % of Projected % of

REVENUE BY SOURCE 2007/2008 2007/2008 30 Apr'08 Budget 30 Jun'08 Budget

(R'000) (R'000) (R'000) (83,3%) (R'000) (100%)

Establishment Levy 0 430 543 126.3% 663 154.2%

Service Levy 0 187 43 23.0% 62 33.2%

Grants 172,638 184,433 181,393 98.4% 184,433 100.0%

Interest on investments 7,420 16,904 16,457 97.4% 19,649 116.2%

Other income 138 5,140 216 4.2% 1,501 29.2%

Total 180,196 207,094 198,652 95.9% 206,308 99.6%

Contribution Acc. Surplus 58,898 32,000 40,442 126.4% 32,786 102.5%

Total Revenue 239,094 239,094 239,094 100.0% 239,094 100.0%

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BUDGET INFORMATION: INVESTMENTS

Financial Institution

Amount Invested

30 Apr ‘08 30 Jun ‘08

ABSA R 48M R38M

FNB R48M R38M

Standard Bank R48M R38M

Nedbank R48M R38M

TOTAL R 192M R 152M

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• Investment decrease attributed to expenditure on projects

BUDGET INFORMATION: EXPENDITURE ADMINISTRATION OF THE ACT.

BudgetAdjustment

Budget Actual % of Projected % of

EXPENDITURE 2007/2008 2007/2008 31 Apr'08 Budget 30 Jun'08 Budget

(R'000) (R'000) (R'000) (83.3%) (R'000) (100%)

Salaries, Wages & Allowances 42,143 35,621 19,339 54.3% 24,115 67.7%

Councillor Allowances 4,543 5,422 3,979 73.4% 4,355 80.3%

Depreciation 1,659 1,404 1,150 81.9% 1,404 100.0%

Collection Cost 50 50 25 50.0% 49 98.0%

Repairs & Maintenance 723 769 473 61.5% 579 75.3%

Contracted Services 561 984 553 56.2% 669 68.0%

General Expenditure 14,601 19,288 10,096 52.3% 11,584 60.1%

Less: Debited Out -6,449 -5,707 -4,350 76.2% -5,124 89.8%

Administration of the Act 57,831 57,831 31,265 54.1% 37,631 65.1%

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• In the process of reforming the organisational structure, not all budgeted positions were filled.

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BUDGET INFORMATION: EXPENDITURE INDIRECT ALLOCATIONS

Indirect Allocations to Budget

Local Municipalities

SUPPORT SERVICE - TECHNICAL 1,808,310

MAYORAL EXCELLENCE AWARD 600,000

FIRE PREVENTION 500,000

SPORT,ARTS AND CULTURE 700,000

REGIONAL SPORT STADIUM 400,000

YOUTH DEVELOPMENT 400,000

BURSARIES 2,150,000

CO-ORDINATION HIV AND AIDS 400,000

REVENUE COLLECTION / DATA CLEANSING 5,000,000

GRAVEYARDS 1,000,000

YOUTH DESK IN MUNICIPALITIES 200,000

DISASTER MANAGEMENT 2,000,000

WOMEN'S CAUCUS 200,000

RELIGIOUS AFFAIRS(MORAL REGENERATION 200,000

TRADITIONAL AFFAIRS / PROJECTS 500,000

Indirect Allocations to Budget

Local Municipalities

OFFICE - RIGHTS OF THE CHILD 200,000

ENVIRONMENTAL PROMOTIONS 700,000

PEOPLE WITH DISABILITIES 300,000

CO-ORDINATION OF FARM WORKERS 200,000

REGIONAL REFUSE DUMP SITE 2,000,000

INTEREST AND REDEMPTION 804,100

LED, TOURISM AND AGRICULTURAL 4,000,000

IDP - NEW AND UPDATE 1,000,000

IT FOR THE REGION 1,000,000

CAPACITY BUILDING/COMM PARTICIPATION 3,500,000

PROMOTION OF THE DISTRICT/COMMUNIC 2,500,000

EMERGENCY / CONTINGENCIES 1,500,000

DEPRECIATION 2,237,080

TRAINING - DONOR FUNDING 5,000,000

AUDIT/INVESTIGATION STP/WTP'S 500,000

TOTAL 41,499,490

Actual Expenditure to 30 April 2008 29,4%

Projected expenditure to 30 June 2008 80,0%

BUDGET INFORMATION: EXPENDITURE DIRECT ALLOCATIONS

Direct Allocations to Local Municipalities Budget

Albert Luthuli LM 19,484,707

Msukaligwa LM 20,752,378

Govan Mbeki LM 11,436,013

Mkhondo LM 23,335,035

Lekwa LM 11,872,432

Dipaleseng LM 8,394,509

Pixley ka Seme LM 10,134,716

TOTAL 109,550,614

Actual Expenditure to 30 April 2008 38.2%

Projected expenditure to 30 June 2008 62.0%

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ALBERT LUTHULI LOCAL MUNICIPALITY: DIRECT ALLOCATIONS

Budget Project Exp Budget Budget Total

PROJECT DESCRIPTION 2007/08 30/06/08 2008/09 2009/10 Proj. cost

ALBERT LUTHULI LM

CONSTRUCTION ELUK FRESH PRODUCE MARKET 41,026 41,025 41,026

UPGRADE METHULA T/INST WATER C 2,226,968 1,792,830 2,226,968

UPGRADE EMPULUZI WATER SCHEME/ INST 1,739,361 1,739,361 1,739,361

PROVISION VIP'S SWALLOWSNEST W 453,242 453,242 453,242

UPGRADE EERSTEHOEK WATER SCHEME 698,035 698,035 698,035

INSTALLATION WATER RET/WATER BORNE 2,026,075 1,425,920 2,026,075

UPGRADING OF EMPU (METHULA)WTW (Multi yr) 1,550,000 550,000 1,450,000 3,000,000

UPGRADING OF CAROLINA WTW (Multi yr) 1,950,000 750,000 3,400,000 2,150,000 7,500,000

UPGRADING OF ELUKWATINI WTW (Multi yr) 1,500,000 500,000 1,200,000 1,300,000 4,000,000

WATER RET AT CAROPARK 650 H/HOLDS 1,100,000 650,000 1,100,000

UPGRADE OF EKULINDENI BULK SCHEME 1,250,000 1,000,000 1,250,000

COMMUNAL WATER RET 480 H/HOLDS 950,000 950,000 950,000

UPGRADE OF EMPU(MAYFLOWER)WTW 1,600,000 800,000 1,600,000

VIP TOILETS (Multi yr) 1,300,000 1,071,090 700,000 2,000,000

UPGRADING BETTIESGOED BULK SCHEME (Multi yr) 400,000 50,000 200,000 1,400,000 2,000,000

UPGRADING EKULINDENI WTW (Multi yr) 400,000 50,000 300,000 1,300,000 2,000,000

PROVISION BOREHOLES WITH HANDPUMPS (Multi yr) 300,000 50,000 700,000 1,000,000

19,484,707 12,571,503 7,950,000 6,150,000 33,584,707

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ALBERT LUTHULI LOCAL MUNICIPALITYUpgrading of Methula Water Treatment Works

[PMG note: photo’s have been removed]

• Project Amount = R4,5M• Endeocon Consulting Eng.• Caluma Construction / 27

Years Robin Island Construction

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DIPALESENG LOCAL MUNICIPALITY: DIRECT ALLOCATIONS

BudgetProject

Exp Budget Budget Total


DIPALESENG LM

ERADICATION OF BUCKETS

499,870

499,870

499,870

WATER RETICULATION

934,909

467,450

934,909

PAYMENT DBSA LOAN

1,000,000

1,000,000

1,000,000

470,590

2,470,590

FORTUNA RISING MAIN TO BALFOUR (Multi yr)

2,559,730

1,279,865

4,950,000

3,755,270

11,265,00

0

UPGRADE OF GROOTVLEI RISING MAIN (Multi yr)

600,000

600,000

2,200,000

1,800,000

4,600,000

WATER RET INFORMAL AREA 600H/H (Multi yr)

600,000

600,000

600,000

1,200,000

PROVISION BOREHOLES WITH HANDPUMPS(Multi yr)

1,200,000

600,000

775,000

1,975,000

NEW WTP FOR GREYLINGSTAD (Multi yr)

1,000,000

50,000

560,000

1,560,000

PROVISION OF VIP'S

1,000,000

1,000,000

GREYLINGSTAD COMMUNITY HALL

1,740,207

400,000

1,740,207

10,134,716

5,497,185

11,085,000

6,025,860

27,245,57

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DIPALESENG LOCAL MUNICIPALITYFortuna Rising Main to Balfour – Ph 1-


• Project Amount = R11.2M• Vukani Consulting Eng.• Qubekela Contractors

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GOVAN MBEKI LOCAL MUNICIPALITY: DIRECT ALLOCATIONSGOVAN MBEKI LM Budget Project Exp Budget Budget Total


ELECTRICITY INSTALMENT ON LOAN

1,592,662

1,592,662

1,592,662

1,592,662

4,777,986

REFURB EMBALENHLE PUR PLANT 90ML (Multi yr)

4,617,319

2,817,319

5,500,000

3,790,019

13,907,338

REFURB BETHAL PUR PLANT 10.2ML (Multi yr)

1,350,000

750,000

1,950,000

200,000

3,500,000

REFURB EVANDER PUR PLANT 6ML (Multi yr)

1,450,000

750,000

2,900,000

1,150,000

5,500,000

CONVERSION VIP TO WATERBORNE SEWER (Multi yr)

1,826,032 770,781

3,081,306

4,907,338

PROVISION BOREHOLES WITH HANDPUMPS (Multi yr)

300,000 50,000

700,000

1,000,000

PROVISION OF VIP'S (Multi yr) 300,000 50,000

700,000

1,000,000

11,436,013

6,780,762

16,423,968

6,732,681

34,592,662

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GOVAN MBEKI LOCAL MUNICIPALITY Refurbishment of Embalenhle Sewer Purification

Plant-90ML - Ph1


• Project Amount = R13.9M• Afri-Infra Consulting Eng.• Bi-Water Engineering

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LEKWA LOCAL MUNICIPALITY: DIRECT ALLOCATIONS



LEKWA LM

RURAL WATER SUPPLY 1,759,060 1,759,060 1,759,060

ZONING OF WATER NETWORKS - INVESTIGATION 253,380 253,380 253,380

INSTALLATION STANDBY PUMP VAAL RIVER 719,571 719,571 719,571

REPAIR KIESER STR WATER RESERVOIR 304,085 304,085 304,085

UPGRADE SEWER LINE VAAL RIVER 776,556 776,556 776,556

MAIN ROAD IN SIVUKILE 59,781 59,781 59,781

UPGRADE OF WTW TO 37.5ML CAPACITY (Multi yr) 1,900,000 1,000,000 4,250,000 2,850,000 9,000,000

UPGRADE MORGENZON ABSTRACTION FACILITY (Multi yr) 750,000 375,000 250,000 1,000,000

RISING MAIN WTW & OLD STAN RES (Multi yr) 1,750,000 1,250,000 2,650,000 100,000 4,500,000

ERADICATION RURAL BACKLOG 53 BORE HOLES (Multi yr) 1,550,000 1,150,000 2,300,000 650,000 4,500,000

PROVISION OF VIP'S (Multi yr) 1,050,000 750,000 950,000 2,000,000

COMPLETION BULK WATER SUPPLY (Multi yr) 500,000 50,000 1,500,000 1,000,000 3,000,000

UPGRADING MORGENZON STW (Multi yr) 500,000 50,000 700,000 800,000 2,000,000

11,872,432 8,497,432 12,600,000 5,400,000 29,872,432

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LEKWA LOCAL MUNICIPALITY Upgrading of WTW to a 37.5ML Capacity – Ph1


• Project Amount = R9.0M• Mzala Consulting Eng.• Jonker Construction

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MKHONDO LOCAL MUNICIPALITY: DIRECT ALLOCATIONS



MKHONDO LM

PIET RETIEF WATER TREATMENT PLANT 1,189,119 0 1,189,119

PROVISION BOREHOLES WITH HANDPUMPS (Multi yr) 1,432,194 900,000 700,000 2,132,194

INSTALL WATERBORNE TOILETS ETHANDAKUKHANYA 2,335,563 1,853,660 2,335,563

INSTALL WATERMETERS WARDS 1 & 2 1,886,777 1,886,777 1,886,777

PIET RETIEF STW INCREASE CAPACITY (Multi yr) 7,926,829 4,899,221 1,158,078 500,000 9,584,907

COMPLETION WATER NETW ETHANDAKUKHANYA X5 967,239 967,239 967,239

PROVISION OF VIP'S (Multi yr) 1,238,764 1,108,764 820,000 2,058,764

DRIEFONTEIN WTW INCREASE CAPACITY (Multi yr) 4,000,000 1,900,000 2,500,000 1,000,000 7,500,000

INTERNAL WATER NETWORK - WARD 6 (Multi yr) 600,000 600,000 1,437,000 2,037,000

INSTALLATION TOILETS - WARD 14 (Multi yr) 2,400,000 3,201,922 5,601,922

MKHONDO COMMUNITY HALL 1,758,550 400,000 1,758,550

23,335,035 14,515,661 9,015,078 4,701,922 37,052,035

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Project Amount = R20.0MKwezi V3 Engineers

Sandu/Swans Contractors

MKHONDO LOCAL MUNICIPALITY Piet Retief Water Treatment Plant - Ph 3


MSUKALIGWA LOCAL MUNICIPALITY: DIRECT ALLOCATIONS Budget Project Exp Budget Budget Total


MSUKALIGWA LM

WARBURTON WATER NETW PHASE 2 550,936 550,936 550,936

UPGRADE WATER PURIFICATION PLANT 258,254 258,254 258,254

UPGRADE WATER PURIFICATION PLANT EXT 32 5,872,372 4,149,890 5,872,372

SUPPLY WATER/ REPAIR WATER NETWORK 119,261 119,261 119,261

RURAL WATER SUPPLY MSUKALIGWA 1,017,761 1,017,761 1,017,761

DEDICATED SEWER SUPPLY LINE HOUSING 500,000 500,000 500,000

REPLACEMENT HOUSE CONN/METERS (Multi yr) 1,683,000 900,000 1,852,000 3,535,000

WATER SUPPLY 5 INFORMAL SETTLEMENTS 750,000 400,000 750,000

ELEVATED TANK & SUPPLY LINE HOUSEHOLDS 1,071,055 850,000 1,071,055

CONSTRUCT NEW WATER TOWER CHRISSIESMEER (Multi yr) 1,400,000 500,000 1,029,212 2,429,212

DEDICATED WATER & SEWER SUPPLY 755,000 524,540 755,000

UPGRADE EXISTING PUMPSTATION BREYTEN 500,000 500,000 500,000

NGANGA SEWER RETICULATION (Multi yr) 1,941,058 1,000,000 815,492 2,756,550

BOREHOLES & HANDPUMPS RURAL (Multi yr) 1,300,000 650,000 892,956 2,192,956

SHEEPMOOR PROV OF EXTERNAL TOILETS (Multi yr) 733,680 650,000 964,488 1,698,168

CONSTRUCT RAW WATER PUMPS- JER (Multi yr) 500,000 50,000 450,000 50,000 1,000,000

CONSTRUCT 20KM PIPELINE SHEEPMOOR (Multi yr) 500,000 50,000 650,000 2,850,000 4,000,000

OUTFALL SEWER LINES WESSELTON (Multi yr) 500,000 50,000 1,100,000 1,900,000 3,500,000

NEW 5ML SEWER TREATMENT PLANT (Multi yr) 500,000 50,000 400,000 1,600,000 2,500,000

PROVISION OF VIP'S (Multi yr) 300,000 50,000 700,000 1,000,000

20,752,377 12,820,642 8,854,148 6,400,000 36,006,525

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MSUKALIGWA LOCAL MUNICIPALITY

Upgrading of Water Purification Plant Ext 32,33 - Ph 2


• Project Amount = R5.8M• Afri-Infra Consulting Eng.• Bishop Construction

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PIXLEY KA SEME LOCAL MUNICIPALITY: DIRECT ALLOCATIONS



PIXLEY KA SEME LM

PROVISION OF VIP TOILETS (Multi yr) 2,302,891 2,152,891 700,000 3,002,891

CONSTR OF ROADS AMERSFOORT/EZAMOKUHLE 44,438 44,438 44,438

CONSTR OF ROADS DAGGAKRAAL 4,038 4,038 4,038

EXT/UPGRADING WATER TREATMENT PLAN (Multi yr) 2,364,106 1,364,106 5,198,694 2,000,000 9,562,800

UPGRADING BULK SUPPLY WATER 77,486 55,271 77,486

UPGRADING SEWER RETICULATION/TREATMENT PL ANT(Multi yr) 1,550,000 250,000 1,364,216 2,914,216

UPGRADING WEST STR/COMPL SOUTH 270,735 270,735 270,735

UPGRADE WATER NETWORK (Multi yr) 750,000 750,000 750,000 1,500,000

INSTALLATION WATER NETWORK (Multi yr) 883,502 883,502 616,498 1,500,000

CONSTRUCTION WATER RETICULATION NETWORK (Multi yr) 1,202,699 602,700 1,797,301 3,000,000

EXTENSION EZAMOKUHLE SEWER RETICULATION (Multi yr) 785,437 785,437 214,563 1,000,000

CONSTRUCTION BULK SUPPLY LINE VOLKSRUST (Multi yr) 500,000 50,000 1,200,000 1,300,000 3,000,000

UPGRADE ASBESTOS BULK SUPPLY LINE (Multi yr) 500,000 50,000 1,000,000 1,500,000 3,000,000

CONSTRUCTION 1.5ML RESERV EZAMOKUHLE (Multi yr) 500,000 50,000 957,211 1,542,789 3,000,000

UPGRADE WATER BULK ASBESTOS SUPPLY LINE (Multi yr) 500,000 50,000 600,000 900,000 2,000,000

PROVISION BOREHOLES WITH HANDPUMPS (Multi yr) 300,000 50,000 700,000 1,000,000

12,535,332 7,413,118 15,098,483 7,242,789 34,876,604

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PIXLEY KA SEME LOCAL MUNICIPALITYExtension & Upgrading of Water Treatment Plant – Ph 2 (Volksrust)


• Project Amount = R9.5M• Utility Consulting Eng.• LLJ Civils

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FACTORS CAUSING DELAYS IN MULTI YEAR PROJECT IMPLIMENTATION

• Compliance with NEMA

• Township establishment restrictions

• Project life cycle confined by MFMA

• Project life cycle confined by investigation and design parameters

• Long procurement processes

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SPENDING AND PERFORMANCE: CONDITIONAL GRANTS

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CONDITIONAL GRANTS Budgeted Actual Actual Spent % Projected %

Income Received 30 April '08 Spent 30 Jun '08 Projected

WATER SERVICES OPERATING & TRANSFER SUBSIDY GRANT

Current Year 770,000 770,000 0 0% 770,000 100%

TOTAL 770,001 770,001 0 0% 770,001 100%

FMG

Previoius Financial Year 348,150 348,150

Current Year 500,000 500,000

TOTAL 848,150 848,150 466,395 55.0% 848,150 100%

MSIG

Prevous Financial Year 1,219,766 1,219,766

Current Year 1,000,000 1,000,000

TOTAL 2,219,766 2,219,766 966,486 43.5% 2,219,766 100%

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BUDGET INFORMATION: CAPITAL EXPENDITURE

BudgetAdjustment

Budget Actual % of Projected % of

EXPENDITURE BY TYPE 2007/2008 2007/2008 30 Apr '08 Budget 30 Jun '08 Budget

(R'000) (R'000) (R'000) (75%) (R'000) (83,3%)

Capital Expenditure

New Offices & Alterations 8,000 15,000 2,101 14.0% 13,500 90.0%

Construction Vehicles & Equipment 8,000 8,000 6,454 80.7% 7,900 98.8%

Office Furniture & Equipment 100 250 202 80.8% 250 100.0%

Total Capital Expenditure 16,100 23,250 8,757 37.7% 21,650 93.1%

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COMPLIANCE WITH MUNICIPAL FINANCE MANAGEMENT ACT

• The municipality fully complies to the stipulations, regulations and circulars relating to the following chapters of the Act.

– Chapter 3 – Municipal Revenue– Chapter 4 – Municipal Budgets– Chapter 5 – Co-operative Governance– Chapter 6 – Debt– Chapter 7 – Responsibilities of Mayors– Chapter 8 – Responsibilities of Municipal Officials– Chapter 9 – Municipal Budget and Treasury Offices– Chapter 11 – Goods and Services

• The Council do not have any entities as regulated by Chapter 10

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In complying to these chapters, the municipality:

• Compiled, approved and annually reviews a Register of Delegated Powers and Functions.

• Provides assistance to personnel to improve competency levels

• Created Budget and Treasury offices within the Finances department under control of the CFO

• Created a Supply Chain Management Unit within the Finance Department under control of the CFO.

• Established a three-part Bid Committee System

• Fully compliant with promulgated Supply Chain Management Regulations.


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Conformity exists within the following stipulations on report and reportable matters:

• Section 8 to 11 – Reports to National Treasury and the Auditor General on primary bank account or changes to bank account.

• Section 13 (3) and (4) Bank or investment balances to the Auditor- General.

• Section 52 (d) A quarterly budget and financial report by Executive Mayor to Council.


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Conformity exist within the following stipulations on reports and reportable matters (continue…)

• Section 71 – Monthly budget statements to Provincial and National Treasuries.

• Section 72 – Mid-year budget and performance assessment by Accounting Officer.

• Section 75 – Prescribed information placed on official website.• Section 121 and 127 – Annual Report that includes:

– The annual financial statements– The annual performance report (Sect 46 of MSA)– The Auditor-General report (Sect 45 (b) of MSA)


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POLICIES AND BY-LAWS

• The Municipal Council considered, approved and published the following policies as contained in the Municipal Code:

• Financial Policies– Budget

– Supply Chain Management

– Fixed Asset

– Fraud Prevention Plan

– Cash Management and Investment

– Risk Management

• All policies are reviewed from time to time as required.

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RELATIONS AND COLLABORATION WITH NATIONAL AND PROVINCIAL DEPARTMENTS

• CFO serves on:– SALGA Finance Committee.– CFOs Forum within Gert Sibande District as Chairperson.– Provincial MUNIMEC Forum as Provincial Treasurer.

• CFO participates in:– Annual SALGA Budget week– Provincial IMFO branch.

• CFO provides information:– On returns of Provincial and National Treasury– On returns of the Department of Provincial and Local Government– On request by the Provincial Local Government and Housing– National Department of Statistics

• Delegations from other municipalities regularly received and briefed on best financial practices.

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MUNICIPALITIES’ RELATIONS WITH NATIONAL AND PROVINCIAL DEPARTMENTS

• The electronic interaction with National and Provincial Departments on sharing of statistics for oversight purposes is working satisfactorily.

• The SCM training provided by National Treasury has been beneficial to all Municipalities.

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• MUNIMEC FORUM EXECUTIVE MAYORS’ FORUM

• MUNICIPAL MANAGERS’ FORUM CHIEF FINANCIAL OFFICERS’ FORUM

• TECHNICAL MANAGERS’ FORUM CORPORATE SERVICES/ HR FORUM

• DISTRICT COMMUNICATION FORUM HIV/ AIDS COUNCIL

• IDP REPRESENTATIVE FORUM PREMIER’S CO-ORDINATING FORUM

INTERNAL DISTRICT / LM FORUMS

• Decisions taken at other supporting Departmental forums are being relayed to Municipal Managers’ Forum for recommendation and implementation.

EXTERNAL DISTRICT / LM FORUMS

• These assist District/ LM’s to ensure consistency of working relationships within the GSDM’s area of jurisdiction.

MUNICIPALITIES’ RELATIONS WITH NATIONAL AND PROVINCIAL DEPARTMENT

FORUMS CURRENTLY BEING HELD AT DISTRICT LEVEL:-

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CAPACITY CONSTRAINTS - CHALLENGES

• Grant income is a predetermined amount which can not be enhanced, while actual levy income could have exceeded budgeted amount.

• National Treasury guidelines limited the year on year increase at ± 7%.

• Large numbers of local people moved from Rural / farming areas to urban areas.

– This situation resulted in services being unable to cope with demand resulting in huge informal settlements with poor services.

• Unfunded mandates – With the current Government initiatives reform – Municipalities are faced with taking over services without adequate funding being awarded e.g. Health Services.

35

CAPACITY STRENGTHS

– SKILLS ASSESSMENT IN GSDM

• Technical expertise is not viewed as a constraint as this municipality has ten qualified Engineering Technicians.

• There is however a gap between the existing knowledge of technicians and that specifically required by the municipality.

– CAPACITY BUILDING: SENIOR OFFICIALS & COUNCILLORS

- Donor Funding of approx R10m – Agreement to be signed with Canadian International Development Agency (CIDA).

- Council currently embarking on training of Senior Officials & Councillors of the LM’s and GSDM.

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CAPACITY STRENGTHS• Total budgeted managerial positions : 29

• Total occupied positions : 20 – (69%)

• Vacant positions : 9 – (31%)

STATUTORY APPOINTMENTS

• Section 57: MM, CFO, Executive Directors: Municipal Infrastructure & Service, Corporate Services, Office of the Mayor.

• Performance agreements signed

INTERNAL AUDITORS : Function is outsourced / finalising permanent employment

SUPPLY CHAIN MANAGER : Position is filled

DIRECTOR – LEGAL : Position is filledSERVICES

• RISK MANAGEMENT: Function outsourced.

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CAPACITY STRENGTHS

Manager LED - 1 Acting position Manager WSP - Position Filled

STATUTORY APPOINTMENTS CONT…

Action Taken by GSDM:

• Capacity building to enhance better skills and retain skills.

High Level Training:• Universities : Engineering(3), Finance (4), Agriculture (1) = 8

• Universities of Technology: Engineering(7), Finance (4), Agriculture (1) = 12

• FET College: (Artisan & Supervisors): Plumbing, Masonry, Electrical, Building = 20 • Traffic College: Traffic Officers = 13

GSDM BURSARY STUDENTS [PMG note: photo’s have been removed]

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CURRENT STUDENTS AT TERTIARY INSTITUTIONS

39

MUNICIPAL IDP ALIGNMENT TO THE PGDS

• Each of the Provincial Priorities as encapsulated in the PGDS are assigned Strategic Thrusts that serves as vehicles to ensure envisaged results.

• These Strategic Thrusts constitutes programmes that are implemented by the respective Departments within the Province with respect to functions therein.

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MUNICIPAL IDP ALIGNMENT TO THE PGDS

• These Provincial Departments’ programmes subsequently constitutes part of the programmes and projects within the Municipal IDPs, given the focal point of respective Departments in a set period.

• Programmes of the respective Provincial Departments are also influenced by the issues emanating from the Municipal IDPs, which are deliberated upon during varying Public Participation mechanisms such as IDP Fora, IDP Technical Committee and other IGR Structures at the disposal of the District.

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MPGDS Priorities

Social Dev Infrastructure

Social Dev Infrastructure

Sustainable Environmental Development

Sustainable Environmental Development

Good Governance

Good Governance

Human Resource

Development

Human Resource

Development

Social Development

Social Development

GSDM KPA 4 GSDM KPA 3

GSDM KPAs 2 & 6

GSDM KPA 1

GSDM KPA 5

Economic Development

Economic Development

GSDM KPA3

Relationship between GSDM’s IDP & MPGDS

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SERVICE DELIVERY: MUNICIPAL SUPPORT • Disaster Management:

– Supply equipment & vehicles (R3.8m)- 7 x Fire fighting vehicles -(Refer to photo ‘A’)

- 3 x Sub-Disaster Management Centres (7 LM’s) (R9m) (Mkhondo/ Dipaleseng/Albert Luthuli) -(Planning stage)

• Road & Storm water Support: - Supply of equipment & vehicles (R23m)

- 7 x Graders - (Refer to photo ‘B’)

- 7 x Tripper Trucks - (Refer to photo ‘C’)- 7 x Back actors - (Refer to photo ‘D’)

- 7 x Front End Loaders

• Community Participation (7 LM’s):

- Supply equipment & vehicles (R1m)

- 7 x Light Duty Vehicles

- 115 Loud hailers (For each ward in the 7 LM’s)

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PHOTO ‘A’: FIRE ENGINES[PMG note: photo’s have been removed]

PHOTO ‘C’: TIPPER TRUCKS[PMG note: photo’s have been removed]

PHOTO ‘D’: BACKACTORS[PMG note: photo’s have been removed]

PHOTO ‘B’: GRADERS[PMG note: photo’s have been removed]

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SERVICE DELIVERY

• Refurbishment of 60 Bulk Water and Sanitation Plants within GSDM area of jurisdiction - (SLA negotiations with the LM’s)

• The GSDM has started with the determination of the status quo (Assessment) in relation to the needs and functionality of bulk infrastructure especially that of the purification plants situated in the seven Local Municipalities in the District. This will give a good indication of the funding required for the refurbishment as well as the operation and maintenance cost of all the plants situated within the District’s jurisdictional area.

GIS Data Cleansing • The benefit of the district wide GIS and the data cleansing project

will assist GSDM and its family of LM’s to plan and manage development and revenue collection more efficiently and effectively.

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ESTIMATED BACKLOG

Municipality No of household

without Water

% of Total in relation to

District Backlog

No of household

without Sanitation

% of Total in relation to

District Backlog

Estimated Rural Water & Sanitation

Backlog

Albert Luthuli 21,537 26% 40,403 42% 61,940

Msukaligwa 1,866 2% 4,216 4% 6,083

Mkhondo 7,812 9% 14,797 15% 22,609

Pixley Ka Seme

10,299 12% 10,906 11% 21,205

Lekwa 16,946 20% 14,975 16% 31,921

Dipaleseng 15,129 18% 2,562 3% 17,691

Govan Mbeki

10,088 12% 8,047 8% 18,135

GSDM 83,677 95,906 179,584

SERVICE DELIVERY

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Summary of Funding Requirements

ADD. PROJECTS REQUIRED I.T.O PCF RESOLUTION- 13 APRIL 2007

Water Loss & Demand Management Study

High priority interventions in terms of Water loss & Demand Management Study

TOTAL R 27,563,000 R 57,305,000

WATER SANITATION

Total Households within the GDM (STATS SA) 242,936

Percentage of total Households without services 24% 37%

SERVICE DELIVERY

Financial Year GSDM Funding Secured

MIG Funding Secured Total Funding Secured Funding Required Shortfall

2007/08 R 90,931,004.00 R 41,433,646.50 R 132,364,650.50 R 132,364,650.50 R 0.00

2008/09 R 92,500,000.00 R 30,801,110.50 R 123,301,110.50 R 123,301,110.50 R 0.00

2009/10 R 0.00 R 18,573,611.00 R 18,573,611.00 R 688,357,292.67 R 669,783,681.67

2010/11 R 0.00 R 14,304,611.00 R 14,304,611.00 R 340,315,115.67 R 326,010,504.67

Future R 0.00 R 172,527,171.67 R 172,527,171.67

Sub - Totals R 183,431,004.00 R 105,112,979.00

Totals R 288,543,983.00 R 1,456,865,341.00 R 1,168,321,358.00

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Estimated funding needed to ensure sustainable Operations & Estimated funding needed to ensure sustainable Operations & Maintenance of Bulk Water & Sanitation servicesMaintenance of Bulk Water & Sanitation services

MUNICIPALITY POPULATION POP. Est. cost – M & O

Est. April 2007 % Total

(Stats SA)

ALBERT LUTHULI 201 861 20.48 14 805 284

DIPALESENG 41 150 4.17 3 014 553

GOVAN MBEKI 239 395 24.29 17 559 588

LEKWA 113 285 11.49 8 306 285

MKHONDO 163 456 16.58 11 985 919

MSUKALIGWA 137 822 13.98 10 106 342

PIXLEY KA SEME 88 663 9.00 6 506 229

TOTALS: 985 632 100.00 72 291 428

SERVICE DELIVERY

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CONCLUSION / REMARKS • Already established partnerships are with Ugu DM and Mhlathuze Water – Amanzi. • Need to enhance the capacity constraints by exploring areas where shared services

approach may benefit delinquent municipalities.

• Attraction of professional staff with relevant expertise and appropriate remuneration levels.

• Service Level Agreements should be promoted with constituent municipalities.

• Note be taken that GSDM is providing funding and support to over 60 potential students within the region.

• The GSDM is currently in a process of forging a partnership with the Traditional Leaders to enhance & improve Co-operative Governance in order for municipalities, in finalising their compliance with the Property Rates Act, will receive the co-operation of the Traditional Leaders.

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‘Striving to Excel in Good Governance & Quality Infrastructure’

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