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Table of Content
Executive Summary ................................................................................................................... 4-5
Chapter 1 .........................................................................................................................................
Introduction ........................................................................................................................ 1-9
Alighnment of IDP/Budget/PMS ................................................................................... 9-10
IDP/Budget and PMS Process Plan .................................................................................. 10
Comprehensive Strategic Alignment ............................................................................. 10
National and Provincial Imperatives ......................................................................... 11-14
Local Municipalities ...................................................................................................... 14-15
Management of IDP Process ............................................................................................ 16
Chapter 2 .........................................................................................................................................
Demographic Analysis .................................................................................................... 18-21
VTSD Demographics .............................................................................................................. 22
Economic Analysis ........................................................................................................... 22-23
Basic Service & Infrustructure ......................................................................................... 23-32
Environmental Analysis ................................................................................................... 32-38
Chapter 3 .........................................................................................................................................
Governance Structure .......................................................................................................... 40
Political Structure .............................................................................................................. 40-42
Administrative Structure .................................................................................................. 43-45
Chapter 4 .........................................................................................................................................
Strategic Phase ................................................................................................................. 47-78
Chapter 5
Sector Plans…………………………………………………………………………………80-82
Chapter 6 ..........................................................................................................................................
NMMDM CAPITAL PROJECTS LISTS 2019/2020 ........................................................ 84-94
PROVINCIAL PROJECTS 2019/20 .............................................................................. 97-119
Chapter 7 ........................................................................................................................... 120-212
NMMDM Budget ........................................................................................................................
Chapter 8 ............................................................................................................................ 215-240
Alignment of Strategic Object, National Priority outcomes,
Key Performance Area………………………………………………………………
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Foreword by the Executive Mayor
A NOTE FOR CHANGE ON THE AMENDED IDP FOR THE FINANCIAL YEAR 2019/20
The 2019 is the year of unity as we celebrate 25 years of
Democracy in our beloved country, South Africa.
Ngaka Modiri Molema District Municipality is committed to
restore confidence in our communities as we geared up
for the sixth (6th) administration, we strive for triple change
in both Management, Culture, and Image
It is our role as a District Municipality to ensure that we
coordinate an Intergovernmental discussions on the
service delivery challenges, negative audit opinion, future
plans as well as role and responsiblilites amongst others, through a Governance
Lekgotla for all local municipalities within the jurisdiction of ngaka modiri
molema district.
This District is rural in nature, but the Municipality has developed a new model
in providing access to quality water by installing yard connections in
implementing the Municipal Infrastructure Grant since 2018/19 financial year,
compare to previously, where the municipality was only focusing on water
reticulation.
As we join the “Good Green Deeds” Campaign, the Municipality will initiate
and support recycling and/or waste management projects through Local
Economic Development Programmes.
In pursuit of long term and sustainable solution in the provision of quality water
in this District, the Municipality welcomes the support by Department of Water
and Sanitation on drought relief funding to the amount of R 157 Million to
rehabilitate the identified 44 areas from a list of 127 villages that have been
identified and prioritized as hotspots areas due to shortage of water. These
areas as a temporary measure are provided water through tankering.
We call on communities and business to report all queries to our “Thuma Mina”
Service Delivery Centre Toll Free Number 08000 66636.
#Let’s Grow South Africa, Together….
_____________________________________
CLLR. TSHEPO JUSTICE MAKOLOMAKWA
EXECUTIVE MAYOR
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Foreword by the Municipal Manager STRIVING TOWARDS CLEAN GOVERNANCE AND QUALITY SERVICE DELIVERY
In an endeavor to provide quality services to the people of the
District, Ngaka Modiri Molema District Municipality (NMMDM)
shall focus on a recovery plan from seven years of disclaimed
audit opinions. The reasons for the disclaimers among other
include but are not limited to staffing challenges, laxity of
internal controls, ageing infrastructure and our reactionary
posture towards waster challenges. There is a need for the
district to adopt a global and proactive posture to our
challenges in respect of Water and Sanitation.
The primary goal of NMMDM is always to ensure that
communities have access to clean water and proper sanitation.
To that end, we have formulated partnerships with most water stakeholders including
local business and other social formations.
In the current financial year, the District will be conducting surveys to assess the level
of community satisfaction about all services we offer, which stand as pillars for service
delivery and more so, the reasons why we exist, and these are Water and Sanitation,
Internal Roads, Local Economic Development and Community Services (Fire,
Municipal Health, Safety and Disaster Management).
In a nutshell, the amendment of the 2019/2020 IDP seeks to address the completion
of all identified projects, align operations to find expression in the IDP while sustaining
our commitment to the NDP 2030 goals. While we are excited with the next financial
year, we hold a view that there is a need for the District to add more impetus to
collaborations with the five municipalities, relevant provincial and national
departments so for the IDP to be totally reflective of what government seeks to deliver
to the people.
Ngaka Modiri Molema District Municipality remain “Leaders in Integrated Municipal
Governance” as commits to “build a responsive, caring and accountable”
municipality as outlined by the Back to Basics Strategy.
LET’S GROW SOUTH AFRICA TOGETHER AND MOVE NGAKA MODIRI MOLEMA DISTRICT
MUNICIPALITY FORWARD
_______________________
MR. OLEHILE ALLAN LOSABA
MUNICIPAL MANAGER
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INTRODUCTION
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1. INTRODUCTION TO DRAFT NMMDM 2019/2020 IDP Integrated Development Planning is a process whereby a municipality prepares its strategic development plan for a five-year cycle directly linked to the term of office of its Council. The Integrated Development Plan (IDP) is the principal strategic planning instrument, which guides and informs all planning, budgeting and development in the Ngaka Modiri Molema District (NMMDM) Municipal area. NMMDM already adopted its five-year 4th Generation Integrated Development Plan (IDP) for 2017-2022 and this is the second draft review of the IDP as per section 34 of the Municipal Systems Act, 2000 (Act 32 of 2000). This review is not an attempt to rewrite the five-year IDP and must be read in conjunction with the five-year plan, adopted on 30 May 2017.
1.1. PROCESS PLAN AND SCHEDULE OF KEY DEADLINES
1.1.1. ANNUAL REVIEW OF THE IDP
The IDP is reviewed annually in accordance with an assessment of its performance measurements and to the extent, that changing circumstances demand. The review process serves as an institutional learning process whereby stakeholders can meet to discuss the performance of the past year. The review as indicated earlier on, is not a replacement of the 5-year IDP, nor is it meant to interfere with the long-term strategic direction of the Municipality to accommodate new whims and additional demands. As prescribed by Section 34 of the Local Government: Municipal Systems Act, 2000 (Act 32 0f 2000) the following is legislated: “34. Annual review and amendment of integrated development plan. – A municipal council –
(a) must review its integrated development plan – (i) annually in accordance with an assessment of its
performance measurements in terms of section 41; and (ii) to the extent that changing circumstances so demand; and
(b) may amend its integrated development plan in accordance with a prescribed process.”
The Process Plan remains in force for the duration of the IDP and applies to all reviews thereof. Section 21 of the MFMA provides for the annual adoption of a Schedule of Key Deadlines, which sets out the specific deadlines applicable to each year’s IDP review and budget process. The Council of the NMMDM adopted an IDP/Budget Time Schedule for the 2019/20 cycle, which included a Schedule of Key Deadlines on 30 August 2018 (Resolution C63/2018).
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The following diagram provides a month-by-month summary of the process and time schedule
1.2. PUBLIC PARTICIPATION STRUCTURES, PROCESSES AND OUTCOMES
Public participation is a principle that is accepted by all spheres of government in South Africa. Participation is important to make sure that government addresses the real needs of communities in the most appropriate way.
Participation is one of the cornerstones of our democracy and has equal benefits for politicians, officials and the community:
Consultation will help the Municipal Council make more appropriate decisions based on the real needs of people;
The more informed people are, the better they will understand what the Municipality is trying to do and what the budget and resource limitations are;
Councillors can only claim to be accountable if they have regular interactions with the people they represent and if they consult and report back on key council decisions
The Municipality cannot address all the development needs on its own and partnerships are needed with other spheres of government, communities, civil society and business to improve service delivery and development.
Our public participation methodology is based on the definition of a Municipality as contained in Section 2 of the Municipal Systems Act that states that a municipality consists of:
The political structures of the municipality (Council). The administration of the municipality. The community of the municipality.
1.
Planning
Schedule key dates and review process
On / Before 31 August
2.
Strategising
Review IDP, previous performance and
current trends
September - November
3.
Budget Preparation
Draft Budget / Policies (National,
Provincial and Regional
September - November
4.
Community Participation
Consultation with Stakeholders /
Role players December - March
5.
Tabling
Table draft budget, IDP
March
6.
Approving and Finalisation
Approve Budget / Publish SDBIP &
Performance Agreements
30 June
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1.3. COMPOSITION OF A MUNICIPALITY
Our public participation mechanisms for the purpose of drafting and reviewing the IDP comprise;
Public meetings; Ward Committees; IDP Representative Forums Sector engagements.
1.4. ALIGNMENT OF THE IDP, BUDGET, AND PERFORMANCE
MANAGEMENT
The IDP still remains the principal planning instrument of any municipality, but clearly it is going to remain only that if it does not inform and direct the budget of the municipality. The IDP of Ngaka Modiri Molema District Municipality will become only another document on the shelf if it does not ensure that adequate financial and other resources are made available to implement the strategies, programmes and projects which will underpin the strategic objectives set by Council through a comprehensive public participation process. Whilst the IDP mostly focusses on planning, Performance Management is regarded as a management tool to monitor and evaluate the implementation of the programmes and projects identified in the IDP. One of the core components of a Performance Management System (PMS) is the Service Delivery Budget Implementation Plan (SDBIP) which sets specific targets for each Directorate on the implementation of projects & operational programmes which has been budgeted for in a particular financial year.
The PMS will therefore ensures that a culture of performance is instilled within the District Municipality; and that proper systems and procedures are put in place to monitor performance. This will ultimately ensure that the strategic objectives as indicated in the IDP are achieved.
COUNCIL
ADMINISTRATION COMMUNITY
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Section 62 of the Municipal Finance Management Act (MFMA) (Act 56 of 2003) places a specific responsibility on municipalities to identify all risks internally and externally that might hamper the municipality in achieving its strategic objectives as per the IDP. That is why Ngaka Modiri Molema District Municipality is planning on establish a fully resourced Risk Management Unit which will assess the risks that might negatively impact on the service delivery capability of the municipality. This unit when established will be required to develop comprehensive Risk Management Strategies to pro-actively mitigate such risks.
1.4.1. COMPREHENSIVE STRATEGIC ALIGNMENT All spheres of government should work together and improve their performance to achieve common objectives and outcomes particularly in respect of economic growth, job creation and addressing the needs of the poor. Ngaka Modiri Molema District Municipality affirms that a shared approach to planning and alignment of the National Development Plan, Objectives of the Provincial Planning Commission, Outcome 9 of the Strategic Objectives of National Government, North West Provincial Strategic Objectives and the IDP is central to a co-ordinated and integrated effort and the overall desire to maximise the impact of government programs. The way in which NMMDM aligns with national, provincial and district strategies include the following
(i) NATIONAL
SONA in line with National Development Plan In his State of the Nation Address, the President of South Africa, Honourable Cyril Matamela
Ramaphosa, highlighted that, the task of building a better South Africa is a collective
responsibility as a nation and as the people of South Africa.
Therefore it is the responsibility of all government instituions, of every agency, of every
public entity to improve the conditions of life for all South Africans, especially the poor.
“We also began the process of stabilising and supporting 57 municipalities, where over
10,000 municipal infrastructure projects are being implemented”: emphasised the President.
State of the Nation Address further highlighted that focus have been placed on revamping
industrial parks in townships and rural areas which has brought about discernible change, as
industrial parks have been idling are becoming productive again. In this regard, provincial
governments has been requested to identify investable projects and ensure that investment
books are built for each of our nine provinces to present to potential investors.
The President committed that due to non-integration of infrastructure provision by different
spheres of government, Cabinet has adopted a new infrastructure implementation model to
address these fragmented challenges, inclusive of water shortages
The State of Nation Address, further gave effect to commitment to build human settlements
in well-located areas that bring together economic opportunities and all the services and
amenities that people need, the President made it clear that: “the Housing Development
Agency will construct an additional 500,000 housing units in the next five years, and an
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amount of R30 billion will be provided to municipalities and provinces to enable them to fulfil
their respective mandates”
The President, made a commitmet that he is urgently establishing an inter-governmental rapid response technical team, reinforced by specialist professionals to intervene in areas which are experiencing severe water problems, making a call that everybody living in South Africa is challenged to lend a hand in addressing the triple challenge facing our communities and achieving the transformational vision 2030.
This powerful transformational vision can be briefly illustrated as follows:
(ii) PROVINCIAL Strategic Agenda of North West Province SOPA HIGHLIGHTS
Premier of the North West Province, Prof. Job Mokgoro in his 2019 State of the Province Address, highlighted that : “many of our people took to the streets to voice out their frustrations in relation to our inability or unwillingness to deliver basic, quality services as a provincial government, including of course, local government”.
The Premier therefore was adamant that Public Representatives has an important task to instill confidence in a public service that had become fractured and ensure that quality services are delivered to improve the lives of the people of the North West Province.
As he delivers his State of the Province address, the Premier highlighted amongst others, the benefits for all districts.
For Ngaka Modiri Molema District, the following projects are in place:
NDP 2030 VISION
Reduce Poverty to 0% in 2030
Reduce Unemployment to 6% in 2030
Reduce Inequality to 0.60 in 2030
KEY OBJECTIVES OF THE NDP
Radical Socio Economic Transformation
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• Phase 2 of the rehabilitation and upgrading to a dual carriageway of the 30 kilometre long Road P28/4 from Rooigrond (Mahikeng) to Lichtenburg; • The rehabilitation of Road of 48 kilometre long Road D408 from
Itsoseng to Goedgevonden through Springbokpan; • The upgrading from gravel to surface standard of the 7 kilometre long
Road D402 through the villages of Manamolela to Deelpan to Kopela and long Road D170 from Khunwana to Mokope;
• The light rehabilitation, repair and resealing of the 3,5 kilometre long Road D170 from Khunwana to Geysdorp;
• The light rehabilitation, repair and resealing of 4 kilometre long Road Z414 from Majemantsho to the mines;
Ramatlabama Six Hundred Community Library in the Mahikeng Local Municipality; with the sole intention to ensure that we have an educated youth and inculcate a culture of reading amongst our communities.
The Premier also gave an instruction that by the end of the 2019/20 financial year, there should be no school with pit toilets in the North West.
On addressing the water and sanitation challenges, a clarification of roles and responsibilities was reflected that the Department of Water and Sanitation (DWS) is responsible for the management and ensuring disbursement to benefitting municipalities while the Department of Local Government and Human Settlement plays an oversight role in this process.
The Premier reported to the community of the province that municipalities have been found wanting on this score – as they are in a dire state and about 19 of the 22 municipalities in this province were on the brink of near collapse; totally in a dysfunctional state.
“Sadly, the performance of our municipalities and provision of basic services has been on a decline over the years. Our municipalities have also been regressing in terms of audit outcomes, their response to community needs, and execution of their legislative responsibilities. All our 22 municipalities are under administration; some are placed under Section 139(1) (a) of the Constitution; some are under Section 139 (1) (b) while other are under Section 137 of the MFMA.
However, we have seen significant progress since we appointed Administrators at some of the worst performing municipalities; and in due course, we shall table a detailed report to this august house on the progress witnessed in those ailing municipalities” said the Premier.
In this regard, The Premier committed to continue to ensure that the quality of Administrators appointed are of high standard, making an example with Ditsobotla and Ramotshere Moiloa Local Municipalities, where massive progress has been registered and yielding positive future for our municipalities.
The Premier, Prof. Job Mokgoro, confirmed that over the past few months, his team has identified points of service delivery across Provincial and Local Government which are more prone to failure and thereby compromise service delivery. These are in:-
• Technical and Infrastructure Units in Municipalities;
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• Finance and Treasury Departments in Municipalities;
• Water Delivery Units in Districts Municipalities;
• Units responsible for Community Development and Environment in Municipalities;
(iii) LOCAL GOVERNMENT SPHERE
Back to Basics
In line with the essence of Back to Basics approach is founded upon the saying that “We cannot solve today’s problem with the same level of thinking that created the problem in the first place”. The situation in Ngaka Modiri Molema District Municipality and its five Local Municipality needs a change of paradigm that focuses on serving the people of the District.
At the most basic level, municipalities are expected to comply to the following Pillars of Back to Basics:
Put people and their concerns first and ensure constant contact with communities through effective public participation platforms.
Create conditions for decent living by consistently delivering municipal services to the right quality and standard. This includes planning for and delivery of infrastructure and amenities, maintenance and upkeep, including the budgeting to do this. Ensure no failures in services and where there are, restore with urgency.
Be well governed and demonstrate good governance and administration - cut wastage, spend public funds prudently, hire competent staff, ensure transparency and accountability.
Ensure sound financial management and accounting, and prudently manage resources so as to sustainably deliver services and bring development to communities.
Build and maintain sound institutional and administrative capabilities administered and managed by dedicated and skilled personnel at all levels.
Ngaka Modiri Molema District Municipality through this amended 2019/20 Integrated Development Plan is developing a programme of action that will implement the directives of the NDP 2030 as pronounced by both the 2019 State of the Nation Address as well as State of the Provincial Address.
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Ngaka Modiri Molema District Municipality
Ngaka Modiri Molema District Municipality as a Water Service Authority is also affected by the scourge of water scarcity confronting many parts of Sourth Africa water crises in many parts of the country.
Municipal Powers and Functions
Provision of Water ana Sanitation District Economic Gowth and Rural Development Disaster Management Municipal Health Services and Safety District Internal Rural Roads
The District Municipality has therefore developed a business plan funded by the Department of Water and Sanitation to rehabilitate ageing infrastructure in order to address the water shortage challenges.
The District Municipality will, through inter-municipal IDP Steering Committee monitor the compliance of the actual IDP process of all municipalities with the Framework Plan. This will ensure that the District Municipality will be in a position to undertake corrective action in time if a Local Municipality fail to adhere to the Framework Plan and the timeframes contained therein.
Effective partnerships between all stakeholders are required to reach the targets set for by National Development Plan of 2030 in ensuring that amongst others,
“we will build an economyin which all our people have a meaningful stake and from which they can all benefit”;
“We will strengthen policing to rid our communities of all forms of crime, drugs, gangsterism and violence against women”;
“We will put an end to state capture, restore the integrity of public institutions and tackle corruption, while ensuring that government has the capacity, resource and people to serve citizens effectively”
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1.4.2. Management of IDP Process Plan
ROLE PLAYER RESPONSIBILITIES
Municipal
Council
- Considering and adopting the Process Plan.
- Managing and coordinating the IDP Review
Process;
- Ensuring that Key Performance Indicators and Targets as outlined
in the IDP are realistic and achievable;
- Ensuring that the IDP and the budget are aligned;
- Monitoring the implementation of the IDP;
- Approve and adopt the revised IDP.
Executive
Mayor
- Overall management, co-ordination and monitoring of the
process.
Municipal
Manager & IDP
Manager
- Decide on planning process
- Monitor process
- Overall management and coordination
- Day-to-day management of the process
- Drafting of the IDP Review documentation
IDP Steering
Committee
- Overall management and co-ordination of the planning process;
- Analyse information to determining the priorities;
- Contribute technical expertise in the consideration and
finalization of the strategies and implementation of projects.
IDP Rep. Forum - Ensure effective and efficient public participation;
- Discuss the development, implementation and review of the
municipality's SBDIP and monitor the municipality's performance in
relation to the key performance indicators and performance
targets set by the Municipality.
IDP
Coordinators
Forum
- Provides a platform wherein the District and Local Municipalities
could discuss areas of mutual interest and provide IDP alignment
between all municipalities;
- Meet at least once a month to discuss the alignment process.
National and
Provincial
Departments
- Will be engaged at a district level;
- Provide IDP/Budget guidelines;
- Provide professional and technical support;
- Coordinate training, assess and align IDP with National and
Provincial Sector Departments Programmes.
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SOCIO-ECONOMIC ANALYSIS AND DEVELOPMENT SITUATION
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CHAPTER 2
SOCIO-ECONOMIC ANALYSIS AND DEVELOPMENT SITUATION
2.1 BACKGROUND
The Ngaka Modiri Molema District Municipality (NMMDM) is one of the four district municipalities (DMs) in the North West Province (NWP) with a total extend of 28206 km². According to Statistics South Africa Community Survey (STATSSA CS) 2016, NMMDM has a total population of 889 108. It is comprised of five Local Municipalities (LMs) namely, Ditsobotla LM, Mahikeng LM, Ramotshere Moiloa LM, Ratlou LM and Tswaing LM. NMMDM is centrally located amongst Bojanala Platinum DM, Dr Ruth Segomotsi Mompati DM and Dr Kenneth Kaunda DM within the NWP and shares a boundary with the Republic of Botswana to the north “a gateway to the broader SADC region”, the Northern Cape Province to the South-west and Limpopo Province to the north-east. Refer to figure 1 below:
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Its strategic location offers great opportunities towards the economic development of the District underpinned by various development corridors namely: Platinum Corridor (N4), which stretches from the east to the west of NMMDM
connecting Republic of South Africa with Republic of Botswana and Republic of Mozambique.
The N18 Western Frontier Corridor N18; and N14
2.1.1 DERMOGRAPHICS PROFILE OF NGAKA MODIRI MOLEMA DISTRICT
MUNICIPALITY
STATSSA CS 2016 indicates that NMMDM has a population of 889 108 as compared to 842 698 in 2011 during STATSSA Census. The District has experienced an overall population growth of 5.21 percent over a five year period from 2011 to 2016. Mahikeng LM is the most populous municipality in the District with a total population of 314 394 and Ratlou LM being the least populous with the population of 110 326.
See figure 2 and the table hereunder. LMS Periods Population Household
Income
below
R 1 601
Employment
rate %
Number of
Household per
Municipality
Mahikeng Local 2011 291 527 28 254 35.70 % 84 239
2016 314 394
Ditsobotla Local 2011 168 902 15 579 28.28 % 44 500
2016 181 865
Ramotshere
Moiloa Local
2011 150 713 16 022 36.22 % 40 740
2016 157 690
Tswaing Local 2011 124 218 12 294 28.69 % 30 634
2016 129 052
Ratlou Local 2011 107 339 12 096 43.86 % 26 889
2016 110 326
NMMDM 2011 842 699 84 245 227 002
2016 889 108
Source : Statistics South Africa - (Census 2011 & CS 2016 data)
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The largest population group in the NMMDM is the African group with a total number of 850688 while the smallest population group is white group with an overall number of 1720. There was an increase of 7% in the African group population between 2011 and 2016, while the other population groups have experienced population decline during the same period. Refer, to table 1 above.
Population Composition and Structure (Table 2
YOUNG (0-14) 2011 Male 143479
Female 137095
2016 Male 119721
Female 120421
WORKING AGE (15-64)
2011
Male 249774
Female 262394
2016 Male 290047
Female 285618
Elderly (65+) 2011 Male 20146
Female 29811
2016 Male 29281
Female 44021
SEX RATIO (MALES/100 FEMALES) 2011 96.30
2016 97.55
DEPENDANCY RATIO (<15+>65/(15-
64)
2011 64.54
2016
Age Groups as % of total Population-2011 Stats S.A. Census & Community Survey 2016
Table 2 above indicates that about 64.54% of the population of Ngaka Modiri Molema District Municipality is made up of people aged from 15 to 64 years. This group represents the economically active section of the population. About 30% of the population is made up of children aged 14 and less, while 5.46% is made up of the older generation, who are aged 65 and above.
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Population by Gender
15% 10% 5% 0% 5% 10% 15%
0 - 4
5 - 9
10 - 14
15 - 19
20 - 24
25 - 29
30 - 34
35 - 39
40 - 44
45 - 49
50 - 54
55 - 59
60 - 64
65 - 69
70 - 74
75 - 79
80 - 84
85 +
5-Ye
ar a
ge g
roup
s
Male
Female
FIGURE 2 : SOURCE: STATS SA. CENSUS 2011
51% of the population of Ngaka Modiri Molema District Municipality is made of females while males make up 49%. In terms of actual numbers, there were 413 399 males and 429 300 females in the district in 2011. 2.1.2 Household Services
The NMMDM has a total number of 227 002 household with an average household size of 3.63 persons. In relation to access to services over 77% of households have access to pipe within the yard with 25.7% of that figure having access to water within the dwelling unit. Refer table 3 for household services below:
2001 2011
AVERAGE NUMBER OF ROOMS 4 4.00
FORMAL DWELLING (%) 88.817 85.686
AVERAGE HOUSEHOLD SIZE 4.13 3.63
FEMALE HEADED HOUSEHOLDS (%) 42.98 42.57
ACCESS TO PIPE WATER IN THE YARD (%) 43.499 51.626
ACCESS TO PIPE WATER IN THE DWELLING (%) 18.358 25.797
USAGE OF ELECTRICITY FOR LIGHTING (%) 70.828 80.516
ELECTRICITY USAGE FOR COOKING (%) 43.185 68.564
ACCESS TO SANITATION - CONNECTED TO SEWER (%) 25.685 28.635
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2.1.3 VTSD DEMOGRAPHIC
LOCALMUNICIPALITY NO OF VILLAGES TOWNSHIPS NO OF SMALL DORPIES
DITSOBOTLA 12 04 03
MAHIKENG 103 06 01
RAMOTSHERE 56 02 01
TSWAING 30 04 05
RATLOU 27 N/A N/A
TOTAL 228 16 10
2.2 ECONOMIC ANALYSIS
Economic growth at municipal level is essential for the attainment of economic development, the reduction of poverty and improved accessibility. Fostering such growth requires an indepth understanding of the economic landscape within which each respective municipality operates. The Ngaka Modiri Molema District Municipality has a District Growth and Development Strategy which has been reviewed by council is busy aligning it with the directives of both the National and Provincial government with regard addressing the triple challenge namely, Poverty, Inequality and Unemployment. The District has an important role to play in setting the framework for growth and outlining the necessary actions to stimulate growth in areas such as innovation, research and development, skills, exports and entrepreneurship.
This also means identifying and supporting business growth in areas where there is the greatest potential, whilst ensuring that the necessary economic infrastructure is in place to capitalize on the existing strength and opportunities According to Provincial Growth and Development Strategy (PGDS), sectors that contribute to the economy of the district are listed in table 2 below.
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Table 2: Sector Contribution (%)
SOURCE: STATS SA T3.11.2
ECONOMIC ACTIVITY BY SECTOR
SECTOR 2013/2014 2014/2015 2015/2016(R.mil)
Agric, Forestry and Fishing 1 274 510.00 4502
Mining and quarrying 862 953.00 46371
Manufacturing 1 019 471.00 10166
Wholesale and retail
trade
2 263 445.00 20608
Finance, property, etc. 3 105 977.00 23521
Govt, community and
social services
11 626464.00 23168
Infrastructure
services/Construction
4 60575.00 5052
Transport 1 261 479.00 10083
Electricity 716 269.00 3711
Total 2 039 797.00
Source: Stats SA T3.11.2
2.3 BASIC SERVICE AND INFRUSTRUCTURE
Access to basic services
Basic services are a package of services necessary for human well-being and typically include water, sanitation, municipal health and safety as well as disaster management. The Municipality provides basic services at the prescribed level to all rural households
within its area of jurisdiction but still faces a challenge when it comes to ensuring
that residents of rural NMMDM have access to minimum service standards. There are
however on-going discussions between the NMMD Municipality, and Local Sister
Municipalities to find a sustainable service delivery solution.
2.3.1 Water Management
Ngaka Modiri Molema District Municipality is an accredited Water Services Authority in terms of the National Water Act (Act 36 of 1998) and provides potable water to all rural areas within the jurisdiction of the District
2.3.2 WATER SOURCES WITHIN THE DISTRICT
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Water Source Assessment The current water supply situation within the NMMDM is categorised into the following scenarios: Abstraction from surface sources within the WSA area of jurisdiction (e.g.
dams, springs, large rainwater collectors (harvesting) and water recycling (Waste water Treatment Works));
Abstraction from groundwater sources within the WSA area of jurisdiction (e.g. boreholes), which is a major source of water in both rural and urban areas;
Purchase from external sources (e.g. a water board: Sedibeng Water)
Surface Water Source The large part of communities in the Ngaka Modiri Molema District Municipality are reliant on groundwater sources; however there are also a number of surface water sources that are being utilized. These include the following: Molopo Eye-Grootfontein Water Supply scheme: provides water to large
parts of the Mafikeng Local Municipality. This scheme extracts water from the Molopo eye and Grootfontein well field.
Modimola/Setumo Water Treatment Works provides water to the communities of Danville, Dibate, Golfview, Goodhope, Lonely Park, Mafikeng, Mmabatho, Mocoseng, Montshiwa, Motlhabeng, Seweding and Ramosadi etc. The total estimated population served by this scheme is approximately 145 977.
Modimola/Setumo dam through the Mmabatho Water Treatment Works, pumps water via Lokaleng Pump station to Signall Hill reservoir and from the Signall Hill Reservoir; water is distributed into the city and peri-urban areas.
Dinokana Eye is located in the Ramotshere Moiloa Local Municipality supplying parts of Dinokana villages.
Disaneng Dam is located within Ratlou Local Municipality and supplying the community of Disaneng Village.
Molatedi-Gabarone Water Supply scheme is located in the extreme northern parts of the Zeerust Local Municipality. This scheme provides water to the Derdepoort and Kopfontein border post communities through local water treatments at both these settlements. It also supplies water to Gaborone in Botswana.
Ngotwane Water Supply scheme is located in the Ramotshere Moiloa LocalMunicipality within the NMMDM. This scheme provides water to the communities of Ga-Seane, Lobatleng, Makgwanana, (Rietgat), Tsholofelo and Driefontein. The total number of households serviced by this water scheme is approximately 2000.
Motswedi Water Supply scheme is located in the Ramotshere Moiloa Local Municipality. It abstracts water from the Sehujwane Dam thereafter water is treated at the Motswedi water treatment works. This scheme supplies water to the communities of Reagile, Borakolalo, Motswedi, Gopane East, Gopane West and Sebalagane. The total number of households serviced by this water supply scheme is approximately 4 480.
Groundwater Sources
Detailed information on boreholes within the water supply authority area is provided as and when required, from the relevant department.
24
This section provides information on the location, status, discharge rates, borehole depths, groundwater depth and other relevant information relating to boreholes used for water consumption purposes updated annually.
Groundwater Monitoring, the current fragmented nature of water service provision functions that is not geographically aligned with institutional boundaries makes it difficult to provide conclusive findings relating to groundwater monitoring. Regular monitoring of ground water in rural areas of Mahikeng and Ratlou Local Municipalities, where boreholes are used for servicing residential consumer units does not take place. In some of the rural water schemes Ramotshere, Ditsobotla and Tswaing Local Municipalities the water quality is tested, but on an irregular basis through the assistance of Department of Water and Sanitation (DWS).
External Sources (where the WSA purchase water from others)
The main source of external water to the WSA is from Sedibeng Water Board. 2.3.3 WATER RESOURCE PROFILE Future Trends and Goals (Water Source)
Surface Water Sources: These surface water sources have been discussed in the preceding sections of this chapter, and again the NMMDM area is not endowed with adequate surface water sources.
Groundwater Sources: Extensive use is at present made of ground water as a source of water supply, primarily for use in rural settlements and stock watering. The potential exists to meet the majority of the region’s water demand, especially in areas not readily served by regional supply schemes abstracted from surface water sources and it can be assumed such areas will be supplied by groundwater for the foreseeable future.
Groundwater Monitoring: Ground water monitoring is not done consistently and effectively in the whole NMMDM especially in the rural areas where groundwater is used extensively. Even though Ngaka Modiri Molema has functions of Geohydrology, this position of Geo-hydrologist is still vacant. One of the functions of Geo-hydrologist will be to assist with the implementation of groundwater management though-out NMMDM.
Strategic Gap Analysis (Water Source) Limited information or data e.g. designed report, As-built drawings and technical reports exists on water supply schemes due to poor archiving.
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The District Municipality does not have the WSDP. However the municipality will
identify the technical team that will champion the development of the document with
the support from DWS. The available Water Services Master Plan is covering only
three (03) Local Municipalities (Ramotshere Moiloa, Ratlou and Tswaing Local
Municipalities) and the information is outdated because is 3 years old (2012/13).
Therefore there is a dire need for development of a complete new Water Master Plan
that covers all five (05) Local municipalities.
Establishment of Infrastructure Management System is highly needed for Operation and Maintenance purposes e.g. early detection of system errors (water leaks and malfunctioning of boreholes). Vacant strategic positions within the Technical Department (Technicians, Geo-hydrologist, Water Quality Samplers and Process Controllers for WwTW) need to be filed urgently. Working equipment e.g. drilling rig (ground water development) and ground water loggers (digital water level monitoring purpose) need to be procured.
The Municipality needs to have a contract with an accredited Laboratory for water quality analysis and procurement of on-site water quality testing equipment as well as chemicals for waste water treatment. Due to lack of resources, Groundwater and water quality monitoring are not done comprehensively in the entire District and measures will be put in place in future to ensure that accurate and periodic information is provided for monitoring purposes. The District Municipality will utilize groundwater management system to improve on the current data capturing (DWS- National Groundwater Archive) on all existing groundwater sources. Water tankering service is one of the cost drivers in the Municipality. Water is ferried to drought stricken areas by the municipality owned and hired water trucks. NMMDM has increased number of trucks from 06 to 08 trucks to supply water to 967 x 10 kilo litres JOJO Tanks placed in various 127 villages in the District. These trucks are at service providers for repairs. It was previously hired 57 water trucks through “Construction Plant Hire Contract” which has since been cancelled The cost associated with this service was estimated to 3.5 million rands per month. Somewhat limited information exists in some rural areas on the water supply schemes which were constructed a long time ago, virtual no records exists such as built information, and design reports in the scattered villages and farmlands.
26
Causes of water tankering (Diagnosis) Yearly there is a refurbishment program of water sources where boreholes are being pump tested to check if the recommended production rate is still prevailing. This program is called Water Services Operating Subsidy (WSOS) and it is a grant from Department of Water and Sanitation to Sedibeng Water every year. Always after pump testing the boreholes, pumps are being down sized and this creates a shortage of water at areas used to get water before. The proposal to rediirect thius subsidy to NMMDM is being prepared to be submitted DWS. As a result tankering kicks in to address the shortfall because communities demonstrating dissatisfaction and demanding immediate supply of water. The Grant is residing at Sedibeng Water Board as an Implementing Agent. Therefore there is a dire need for the Municipality to draw a line where we have to only focus on reducing tankering and at the same time address all factors that contribute to tankering services. Other causes are;
Drought stricken areas/drop in ground water table. Vandalism of infrastructure by Communities having interests on subcontracting
for tankering. Limited budget. New settlements. Dilapidation of infrastructure
Implementation Strategies (Water Source) The Municipality will initiate a project to collate all groundwater/borehole information from the various small scattered water supply schemes in both urban and rural areas to ensure that a proper Operation and Maintenance Plan is put in place for future bulk water services planning. Ground water monitoring system will also be put in place.
Eradication of Water Tankering The Department of Water and Sanitation (DWS) has allocated R 248 Million for eradication of water tankering, the money has been transferred to Sedibeng Water as an implementing agent. The project was for 2016/17 financial year. In addition R57 Million has been transferred to Sedibeng Water by DWS for acceleration of implementing emergency projects (Water Services Provision) Having considered the importance of ensuring uninterrupted water supply as a WSA and the Municipality’s financial predicament, it is vital that: Fifteen 14kl water trucks be purchased to reduce number of hired trucks and
associated costs, The Municipal organogram be reviewed in accordance with this initiative and
fifteen truck drivers be appointed, Municipal sewage and water trucks be repaired and utilised to reduce hired
trucks, Since the District Municipality is giving support to Local Municipalities on
tankering of sewer, revenue collected be shared equally. Municipal Water Infrastructure Grant (MWIG) is designed to address all
emergencies in terms of infrastructure maintenance (electrical, mechanical and purchase of water material), for this financial year the amount of the grant is R57m and has been transferred to Sedibeng Water. It is very imperative that the District Municipality negotiate with DWS asking them to reconsider bringing
27
back the Grant to NMMDM and let it reside at Technical Services instead of at PMU, so that it can serve its intended purpose of addressing emergencies.
After every refurbishment program (WSOS), MWIG needs to kick in immediately to address the shortfall (augmentation) as a means of drawing the line to avoid further tankering services. There is a need for linkage of the two grants to complement each other.
The Accounting officer to negotiate with DWS to look for funds of R1.9billion from National Government to fund the Sedibeng Water Business Plan.
The District is currently busy with implementation of in-house projects by drilling and equipping boreholes as well as doing pipe line extensions to reduce tankering but due to shortage of funds, the process is very slow. This predicament is beyond the Municipality. There is a dire need for the District to negotiate for; A Draught Relief Grant to cater for tankering of water and sanitation
services because equitable share is not enough to address the situation. Operation and Maintenance Grant that will help the Municipality to
maintain and restore infrastructure.
2.4 STATUS ON BLUE AND GREEN DROP
The municipality achieved 27.05% in 2014 from 40.72% during 2012 on Blue Drop assessment and for Green Drop the score for 2013/14 assessments was 17.8%.
Blue/Green Drop task team was formed between municipality and Sedibeng Water Board to form a strategic plan to improve the status quos in both standards.
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2.5 SANITATION
NAME OF
WWTW
LOCATI
ON
TYPE OF
TREATMENT
USED
CAPACITY
Ml/d
CURRENT STATUS/PROGRESS
COLIGNY
Ditsobo
tla LM
Old –
Oxidation
Ponds
New-
Activated
Sludge
under
constructi
on
2
5
In-service/operation with
overflowing effluent. No
proper operations and
maintenance of works and
associated networks
New works to be
commissioned in November
2017
ITSOSENG Ditsobo
tla LM
Activated
Sludge
3 Vandalised /stripped
Under SW BP-Refurbishment
plans to be started in June
2017
LICHTENBU
RG
Ditsobo
tla LM
Activated
Sludge
20 In service/operation improved
drastically.
Main critical
electro/mechanical
refurbished by SW under
phase 1
Phase 2 to be commissioned
as soon as budget become
available (SW-BP)
No ongoing maintenance due
to lack of skilled manpower
ITEKENG Ditsobo
tla
Oxidation
Ponds
5 In –service/operated by
temporary local personnel
The project was never properly
design as the ponds are not
interchangeable and not
membrane lined
No preventative maintenance
done
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NAME OF
WWTW
LOCATION TYPE OF
TREATMENT
USED
CAPACITY
Ml/d
CURRENT STATUS/PROGRESS
ATAMELANG Tswaing
LM
Oxidation
Ponds
0.9 In-service/operation with
overloaded ponds due to
sludge accumulation in the
ponds( Need to be emptied
Chlorination systems installed(
SW BP busy with procurement
of service provider
DELAREYVILL
E
Tswaing
LM
Activated
Sludge
4 In service/operation.
Main critical
electro/mechanical need
refurbishment and installation
of new chlorination systems (SW
BP busy with procurement of
service provider
SANNIESHOP
Tswaing
LM
Oxidation
Ponds
New -
Activated
Sludge final
design
stage
1.8
3.5
Old works is overloaded and
dysfunctional
New works is in final design
stages and tender to be issued
by July 2017 (NMMDM-PMU)
OTTOSDAL Tswaing
LM
Activated
Sludge
3 In service/operation.
Main critical
electro/mechanical
refurbished and still outstanding
snag list to be completed-
Process improved
MOTSWEDI Ramotsher
e LM
Activated
Sludge
0.08 SW BP to be completely
refurbished ongoing
30
NAME OF
WWTW
LOCATION TYPE OF
TREATMENT
USED
CAPACITY
Ml/d
CURRENT STATUS/PROGRESS
ZEERUST Ramotsher
e LM
Old
Activated
Sludge
New
Upgraded
with process
component
s
6.2
7.5
In service/ operation
challenges with main
electro/mechanical
equipments. 60% of unit
process out of service
Upgrade of Works to be
commence as soon as
contractor is appointed by
NMMDM - PMU
LEHURUTSHE Ramotsher
e
Oxidation
Ponds
1.5 Vandalised/stripped-
Contractor appointed by SW-
BP Refurbishment project
ongoing
MAFIKENG Mahikeng
LM
Activated
Sludge
4.5 In service /operated by
Mahikeng personnel.
SW BP Refurbishment of drying
beds and works maintenance –
still busy with procurement of
service provider
MMABATHO Mahikeng
LM
Activated
Sludge
24 In service/ operated by
Mahikeng personnel.
SW BP Refurbishment of
Chlorination systems-busy with
procurement of service
provider
2.6 ENVIRONMENTAL ANALYSIS
The topography of NMMDM can mainly be classified as ‘flat’ (68%), with 15% of the total Area described as ‘mountainous’ and 17% as ‘rolling’. The area classified as mountainous is mainly located in the northern parts of the NMMDM (Ramostshere Moiloa Local Municipality). Within this municipality, 47% of the area can be described as mountainous. The central and south-western parts of the NMMDM (Mafikeng, Ditsobotla, Ratlou and Tswaing Local Municipalities) are predominantly flat with some limited mountainous areas in the northern parts of Mafikeng and Ditsobotla municipalities. The balance of NMMDM can be classified as ‘flat’ (68%). Geology Information on soil types within the NMMDM area indicate that the main soil types consist of Eutrophic soils, Dystrophic to Mesotrophic soils, Mesotrophic to Eutrophic soils and Non Calcareous soils. These soil types can directly be related to present and potential spatial distribution of agricultural development. Vegetation of NMMDM can be described as follows: • The drier western parts are mainly characterised by Kalahari thornveld and • The eastern parts are mainly covered by Banken veld and Cymbopogon- • The extreme northern part is characterised by turf thornveld and mixed
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Ngaka Modiri Molema District Municipality is well-endowed with natural resources; therefore, environmental conservation is of high importance to the municipality. Purpose of this environmental analysis is, therefore, to ensure that environmental assets which require protection are considered, and that the approach used for Environmental Management puts people and their needs at the forefront of its concerns, and serves their physical, psychological, developmental, cultural and social interests. Below is a list of Nature and Game Reserves found in the district:
Game and Nature Reserves
Botsalano Game Reserve which is located on flat land which is Kalahari bushveld and Acasia and Karee woodlands. It is found in the area of Ramatlabama near the South Africa/Botswana Border.
Baberspan Bird Sanctuaty which is one of the largest waterfowl sanctuaries in South Africa, covering over 2 000 ha. It is a declared wetland of international importance for migratory birds and waterfowl under the Ramsar Convention, and serves as an important drought refuge for waterfowl that arrive in large numbers to wait out the dry season, as well as a stop-over for migratory birds from the northern hemisphere and other areas. About 365 species have been recorded. The Sanctuary is managed by North West Parks and Tourism Board, who strive to address issues such as pollution and bird research, and the need to uphold the ecological value of Barberspan.
Molemane Nature Reserve in Ottoshoop which has high value game species such as rhino, buffalo, sable and eland. The area has a rich cultural history and mining connotations locally and in the immediate vicinity.
Mafikeng Game Reserve which is composed of Kalahari and Acacia bushveld with bountiful plains game viewing as its main attraction. Not only is the Reserve an important recreational area for the western regions of the province, but is also a breeding centre for a wide variety of game species. The Mafikeng Game Reserve conserves large populations of plains game including white rhino, buffalo, gemsbok and giraffe which can be viewed and photographed on the open plains.
Lichtenburg Game Breeding Centre for breeding of endangered species.
Pienaar Nature Reserve
Marico Bosveld Nature Reserve
Madikwe Game Reserve which is currently the fifth largest game reserve and is also one of the lesser- known parks in South Africa. This makes it a hidden- gem as it is regarded as one of the best conservation areas in Africa and offers the Big 5 in a 680 km2 park (750 km2 including newly incorporated privately owned land). The park offers a number of luxurious lodges as well as community lodges in a malaria- free zone.
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Cultural Heritage
Ngaka Modiri Molema is rich of heritage, culture, natural sites; namely: Thaba Sione contains over 559 engravings located on rocks and boulders. The
engravings are dominated by depictions of rhinoceros - some have been rubbed smooth.
Driekuil Hill is one of at least 12 sites, all on outcrops of pyrophyllite, or 'wonderstone', that include Gestoptefontein Mountain and Gestoptefontein Hill, regarded collectively as the largest and most significant Khoe-San rock art sites in the former Western Transvaal (now North West Province). Two types of markings are identified on Driekuil Hill based on Josephine Flood's distribution between 'referential art' (pecked and incised images of anthropomorphs, zoomorphs, aprons, skins and other objects) and 'gestural art' (grooves, pits, hammered areas, clusters of pecks and cut marks) that may have been made as part of ceremonies.
Gestoptefontein Mountain which is a rock art sites are part of a much larger complex of marked outcrops in a landscape that oral traditions imbue with significance
Gestoptefontein Hills which has Khoe-San rock art sites Kanonkoppie which is a historical and monument site Mafikeng Museum with rich history of Anglo Boer War Wondergat which is one of the deepest Sinkholes in South Africa
Climate Change
Ngaka Modiri Molema District Municipality acknowledges that climate change poses a threat to the environment, its residents, and future development. Actions are required to reduce carbon emissions (mitigation), and prepare for the changes that are projected to take place (adaptation) in the District. Ngaka Modiri Molema District Municipality has therefore prioritized the development of a Climate Change Vulnerability Assessment and Climate Change Response Plan.
The plan was developed through the Local Government Climate Change Support (LGCCS) program, with support from the Department of Environmental Affairs (DEA) and the Deutsche Gesellschaft für Internationale (GIZ). A climate change vulnerability assessment was conducted using the LGCCS Vulnerability Assessment Toolkit (www.climatechangesupport.org). The purpose of this vulnerability assessment was to identify key climate change indicators where the municipality may be at risk to the impacts of climate change.
These are indicators where Ngaka Modiri Molema District Municipality may be at risk to the impacts of climate change. A summary of the key vulnerability indicators is provided in the table below.
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No Theme Indicator Title
Exposure
Answer
Sensitivity
Answer
Adaptive
Capacity
Answer
1 Agriculture
Change in grain
(maize, wheat &
barley) production Yes High Low
12
Biodiversity and
Environment
Loss of High Priority
Biomes - Loss of
Grasslands Yes High Low
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Human
Settlements
Increased isolation of
rural communities Yes High Low
34 Water
Decreased quality of
drinking water Yes High Low
Air Quality
In terms of the general air quality information management, systems and monitoring, the District is not in a position to carry out the responsibilities due to lack of capacity in as far as personnel is concerned. The personnel structure that will deal with the management of air quality is provided and approved but the budgetary challenges do not allow new appointments on the approved structure.
Table 1: Atmospheric Emission Licensing status in Ngaka Modiri Molema District Municipality
ATMOSPHERIC EMISSION LICENSING STATUS IN THE PROVINCE
DATE
APPLICATION
RECEIVED
APPLICANT/INDUST
RY PROCESSING FEE
LICENSING
AUTHORITY
STATUS/DAT
E ISSUED
1 06/11/201
5
Lafarge Not Applicable (
S46)
NW:READ 15/12/201
5
2 06/10/201
5
PPC R5000.00 NW:READ 2016/03/2
2
3 22/10/201
5
Sephaku
addendum
Not applicable NW:READ 2016/03/2
2
4 17/05/201
6
PPC R5000.00 NW:READ 25/09/201
6
The compliance and law enforcement within the district is done by the Department of Rural, Environment and Agricultural Development (READ) on behalf of the district as there is no official trained and designated to undertake the function in the district. There are three (3) Environmental Health Practitioners (EHP’s) trained as EMI but not yet designated by MEC.
34
Below is a table of compliance and law inspections status that were undertaken by READ.
Table 2: Compliance and law enforcement status in Ngaka Modiri Molema District
COMPLIANCE AND LAW ENFORCEMENT STATUS IN THE PROVINCE
DATE OF
INSPECTIO
N
Town and
Municipality INDUSTRY FINDING
ACTION
27/01/201
6
Mahikeng
LM
Supa-
Asphalt
plant
No record of AEL,
in the site
Waiting for lease
agreement from
Mahikeng
municipality, which
will clarify who
should apply AEL
between Sura-
Asphalt plant and
Mahikeng
municipality.
29/01/201
6
Mahikeng
LM
Rooigrond
correction
al centre
Started to
operate without
notifying licensing
authority
They must provide
information, which
were not provided
when applying for
AEL
06/07/201
6
Mahikeng
LM
Molopo
Bricks
They do not
comply with
condition 6.9 and
6.2 of their AEL
(Quarterly report).
In terms of specific air quality improvement campaigns and projects, the air quality improvement campaigns and projects will be informed by the Air Quality Management Plan which is still to be developed in the financial year 2017/2018.
Waste Management
The district has developed a draft IWMP which will form part of the IDP. It comprises of waste status quo in the district as well as strategies and projects that will enable the district to meet the required waste management standard in the district. Due to challenges of waste removal in the local municipalities, the district Regional Landfill Site could contribute significantly to economic activity while also increasing the participation of the region in the green economy. The potential for entrepreneurs dealing in recyclable material could be increased while the cost for collection of such material could significantly be reduced.
The site could also present a potential for projects involving the recovery of landfill methane for electricity generation.
35
Addition benefit for such projects in a landfill site is that they could be registered for Clean Development Mechanism and for trading in Carbon Credits. There is an emerging global market that is developing for "verified emission reductions" (VERs), emission reductions that are created outside of the standardized procedures and methodologies for certified emission reductions (CERs) under the Clean Development Mechanism (CDM) of the Kyoto Protocol (Prabhu Dayal).
The CDM allows emission-reduction projects in developing countries to earn certified emission reduction (CER) credits, each equivalent to one tonne of CO2. These CERs can be traded and sold, and used by industrialized countries to a meet a part of their emission reduction targets under the Kyoto Protocol (UNFCCC Webpage).
The mechanism seeks to stimulate sustainable development and emission reductions, while giving industrialized countries some flexibility in how they meet their emission reduction limitation targets.
36
GOVERNANCE STRUCTURE
37
CHAPTER 3
3.1 GOVERNANCE STRUCTURE
Similar to all other municipalities in South Africa, Ngaka Modiri Molema District Municipality is governed by a political structure, administrative structure glued together by the community to give effect to the definition of a municipality in terms of the Municipal Structures Act.
The King IV Report on Corporate Governance, launched on 1 November 2016, contains the philosophy, principles and leading practices for corporate governance in South Africa. The overarching objective of King IV is to make corporate governance more accessible and relevant, and to be the catalyst for a shift from a compliance-based mind set to one that sees corporate governance as a lever for value creation. Much emphasis is placed on integrated reporting and integrated thinking.
King IV has taken the decisive step to focus on outcomes as a way of driving acceptance of corporate governance as integral to value creation by organisations characterised by an ethical culture, good performance, effective control and legitimacy. Linking governance to outcomes should therefore result in organisations practising quality governance.
The three components that are linked to each other in an integrated manner are composed as follow:
3.1.1 POLITICAL STRUCTURE
Ngaka Modiri Molema District Municipality has been established in terms of Section 10 (b) of the Local Government: Municipal Structures Act (Act 117 of 1998) and therefore consist of an Executive Mayoral System. NNDM is governed by an Executive Mayoral Committee (Mayco) which consists of the Executive Mayor, and five other fulltime Councillors. Certain executive powers have been delegated to the Executive Mayor of NMMD in terms of legislation and by Council to be the political custodian of the day to day running of the municipality. The strategic and political responsibility of the council is vested in the Executive Mayor. The Council of Ngaka Modiri Molema District Municipality has forty two (42) Councillors, of whom Nine (09), are full-time Councillors.
Full time Councillors include:
Executive Mayor : Cllr Tshepo Justice Makolomakwa Council Whip : Cllr Itumeleng Lethoko The Speaker : Cllr Yoliswa Sechoaro
MPAC Chairperson : Cllr Oabetswe Johannes Tselapedi
38
Currently Council has established the following five (05) portfolio committees in terms of Section 80 of the Local Government: Municipal Structures Act (Act 117 of 1998): Financial Services Corporate Services Development and Town Planning Services
Public Works and Basic Services Community Services
Representatives of the House of Traditional Leaders
No. Name
1 Kgosi Suping S.V.
2 Kgosi Montshioa J.K.
3 Kgosi Masibi M.J.
4 Kgosi Matlaba R.V.
5 Kgosi Lencoe E.I.
Municipal Public Accounts Committee (MPAC) The Municipal Public Accounts Committee chaired by Cllr O.J. Tselapedi was appointed by Council to among others oversee the content of the annual reports on its behalf. Responsibilities of the MPAC are to: • Engage directly with the public; • Consider Public comments; • Consider and evaluate the content of the Annual Report; • Develop the Oversight Report; • Make recommendations to Council when adopting the oversight report
39
Roles and responsibilities of Council Committees
Monitoring
Review Reporting Performance
Audit
Advices the
Executive Mayor on
priorities and
objectives of the
Integrated
Participate in the
formulation of the
annual review
programme of the
IDP, including the
review of
Receives Audit
Committee
performance
reports from the
municipal
manager and
make
Receives and
note the annual
audit plan.
Deliberates and
advice on the
municipal strategic
scorecard.
Participate in the
formulation of
proposals for the
annual performance
improvement
measures of the
municipality as part
of the new municipal
strategic scorecard.
Receives
quarterly reports
from the Directors
responsible for
their portfolios
before they are
tabled at MAYCO
Advices the
Executive Mayor
on the
implementation
of the
recommendation
s of the internal
auditor with
regard to both
the improvement
in the
performance of
the municipality
and improvement
of the
performance
management
system itself.
Participates in the
formulation of the
Top Level Service
Delivery and
Budget
Implementation
Plan.
Quarterly evaluates
the performance of
their portfolios
against adopted KPIs
and targets.
Reports to the
Executive Mayor
on the
recommendation
s for the
improvement of
the performance
management
system.
Ensures that
concerns of
community
structures are taken
into account in
discharging their
responsibilities.
Quarterly reviews the
performance of their
portfolios to improve
the economy,
efficiency and
effectiveness of the
municipality.
Council adopts
the over-sight
report.
Development Plan.
key performance
indicators and
performance targets.
Recommendatio
ns to the Mayor.
40
3.1.2 ADMINISTRATIVE STRUCTURE
The administrative component of the municipality consists of the office of the Municipal Manager and five (5) Directorates with substantive Senior Managers all these critical post have successfully filled with competent and dedicated personnel. The Department of Cooperative Governance and Traditional Affairs (COGTA) is assisting the Municipality by developing the proto-type structure that is compliant to the powers and functions of the municipality. This process also took cognisance of the fact that the operation budget which is funded out of own revenue is currently unacceptable and the Municipal Manager is faced with an enormous challenge to place a high priority of bringing it down below the norm. The appointment of a substantive Chief Financial Officer will ensure that NMMDM obtain a better Audit outcome during financial year under review.
Office of the Municipal Manager
The Municipal Manager is the administrative head of the municipality and also the Chief Accounting Officer in terms of the Municipal Finance Management Act (MFMA). He is responsible and accountable for the tasks and functions as set out in section 56 of the Municipal Systems Act (No. 32 of 2000) as well as tasks and functions specifically applicable to the Municipal Manager as set out in other pieces of legislation. The Municipal Manager has got specific roles & responsibilities assigned to him but tasks and responsibilities can also be delegated to the Municipal Manager by the Executive Mayor and the Council. The Office of the Municipal Manager consists of the Municipal Manager and line managers responsible for the following strategic functions:
Internal Audit
Performance Management
Inter-governmental Relations
Communication Services
Directorate: Financial Services
The main function of this directorate is to effectively manage financial resources to promote the sustainability of the municipality’s assets and its daily activities. The directorate also has to ensure effective financial planning and budget linkage.
The directorate is divided into the following sections:
Financial Support Services,
Income Services Expenditure Services Asset Management Supply Chain Management Budgeting and Reporting
41
Directorate: Corporate Services
This directorate is responsible for internal capacity in terms of staff related matters and effective administrative services that facilitates support services to the whole municipality.
Corporate services consist of the following units for:
Human Resources Management Administration Legal support services ICT Fleet Management
Organizational Development and Employee Wellness Labour Relations
Directorate: Public Works and Basic Services
The core functions of this directorate are the planning of infrastructure and basic service delivery. The directorate is divided into the following sections:
Bulk Water and Sanitation Water Services Provision Transportation and Engineering Water Services Authority Project Management Unit
Directorate: Community Service
The Municipal Health and Safety Directorate is formed by four (4) major services to the Ngaka Modiri Molema District Municipality, namely:
Fire and Rescue Services, Municipal Health Services and Disaster Management Services Security Support Services
Directorate: Development and Town Planning Services
Planning and Development Department is split into four sections:
• Integrated Development Planning Town and Regional Planning Social Facilitation
District Economic Growth and Rural Development
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STRATEGIC PHASE
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CHAPTER 4
4.1 STRATEGIC PHASE
The Council of Ngaka Modiri Molema District Municipality is well aware of the development challenges that face the different communities in the area. In order to improve the livelihood of the relevant communities, the Council has adopted long term goals and short term goals that are supported by various development strategies. Council also realizes that the expectations from the communities are extremely high and the resources of the Municipality to match those expectations are relatively limited. The strategic approach therefore would be to optimise the limited resources and expanding the impact it would have on the strategic priorities identified during the stake holder engagement process of developing the IDP. This Chapter focuses on the goals and priorities of the municipality and suggest particular strategies on how those goals can be achieved.
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VISION Leaders in integrated municipal governance
MISSION To provide a developmental municipal governance system for a better life for all
BUSINESS VALUES Integrity Honesty
Ethical
Transparent
Trustworthy
Reliable
Objectivity
Openness
Consultative Collaborative
Participative
Cooperative
Inclusive
Teamwork
Partnering
Integrating)
Accountable Results Oriented
Taking Charge
Ownership
Productive
Decisive Assertive
Disciplined
Quality Conscious
Responsible
Committed Determined Diligent
Motivated
Dedicated
Passionate
Proactive Continuous Learning
Knowledge Sharing
Development focus
Caring
Empathy
Considerate
People centered Service excellence Responsive
Client focused
Helpful
Time Sensitive
VISION AND MISSION
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STRATEGIC PLANNING In an endeavour to fulfil the legislative requirements and policy provisions, Ngaka Modiri Molema District Municipality has continuous embarked on strategic planning sessions aimed at strengthening its role in service delivery. In this regard Ngaka Modiri Molema District Municipality (NMMDM) embarked on a three-day strategic planning session from 21 to 23rd January, 2019 at Kera Lodge, which included the Mayor, Member of the Executive Committee, Councillors, Acting Municipal Manager, senior management, middle management and labour formations in the municipality. The three-day strategic planning session identified a number of issues and challenges that undermine the quest to improve the quality of life, address poverty and unemployment. In addition, the session further identified institutional issues that are likely to hinder its efforts to deliver on the strategic agenda of the municipality. The facilitation of the strategic planning created an environment conducive for councillors and management to raise issues and challenges that threatened the achievement of the Municipality’s strategic objectives. Allowing councillors the space to raise issues and challenges provided the municipality with an opportunity to provide the necessary strategic direction to guide the administration. SWOT ANALYSIS In preparation for the strategic planning the Municipality made a comprehensive SWOT Analysis which is illustrated as follow:
Strengths Weaknesses
Advertisement of quotes above R
30 000 for 7 days
Improved cash flow/liquidity
position e.g. timeous payment of
service providers
Timely approval of the draft and
final budget.
Rental collection on buildings
Critical senior management
positions filled except for the MM
Support to departments.
Consultation with stakeholders
Availability of designated staff to
perform functions
• Lack of adequate cash
management due to non-existent
procurement plan
• Lack of monthly reconciliations
• Poor asset management system
• Poor financial record
management
• Late submission of s71 reports
• Lack of credible financial
information (mSCOA)
• Lack of capacity within the
Budget Unit, Cfo office – AFS &
Income, Supply Chain
Management, Asset
management
• Poor Segregation duties in bid
committees
• Lack of security over cash
collected by cashiers and
banking thereof
• Lack of understanding on GRAP
standard
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• No standard operating
procedure
• Lack of Optimum utilization of
resources
• Silo operations within the
department
• Limited/Inadequate budget.
• Poor records management
• Poor contract management
• Officials appointed in non-
existent positions
• Organisational Structure not
aligned to powers and functions
• Lack of cascading performance
management system to lower
levels
• Labour related litigations
• Lack of adequate skills to resolve
employee grievances
Opportunities Threats
Enhance revenue financial
recovery and through revenue
streams
Metering unmetered water
Imposing Penalties through by
laws
Yearly Renewal Compliance
Certificate
Community riots
Vandalism of infrastructure
Possible law suits (unattended
fire and hazardous
infrastructure – sewer spillage
and unclosed drains
Lack of adherence to
legislation to ensure
compliance.
Litigations against the
municipality by service
providers
4.2 DEVELOPMENT GOALS AND STRATEGIC OBJECTIVES
Ngaka Modiri Molema District Municipality always strives to be an effective development oriented local government institution which aims to address the inequalities and backlogs of the past while ensuring that all its citizens have access to basic services, quality infrastructure, and economic opportunities resulting into decent job opportunities as well as an improved quality of life. That is why the Council has adopted the following strategic development objectives which are aligned to the National KPA’s for Local Government to give effect to its vision & mission as stipulated above:
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Institutional Transformation and Organisational Development Provision of Infrastructure for Basic Service Delivery Economic Development Financial Viability Good Governance
STRATEGIC OBJECTIVE
To promote skills development
Achieve positive employee climate To promote governance and accountable
government To promote accountable, efficient and transparent
administration To improve Technology Efficiency
Provision of Infrastructure for Basic Service Delivery STRATEGIC OBJECTIVE
To Provide Water Service Planning
To Supply Water
To address water services emergencies
To provide Infrastructure Development and
Maintenance
To promote transport engineering
To promote Infrastructure Development and
Maintenance
To manage the implementation of water and
sanitation capital projects
To provide integrated and coordinated Disaster
management Services
To promote Municipal Health Services
To Provide Fire & Rescue Services
Creation of a safe and a secure municipal working
environment
Economic Development STRATEGIC OBJECTIVE
To promote financial accountability and transparency
To promote Local Economic Development
To enhance Rural Development/LED
Expanded Public Works Programme
Institutional Transformation and Organisational Development
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Financial Viability STRATEGIC OBJECTIVE
To implement sound financial management systems & procedures that will ensure the financial viability of NMMDM
Prepare a budget and exercise effective asset management over the resources of the municipality
To promote Financial Accountability and Transparency
Good Governance STRATEGIC OBJECTIVE
To develop, adopt and amend 5 year credible district
IDP
To facilitate pre & post implementation of projects
and programmes of the Municipality
To improve the effectiveness of risk management,
controls and governance processes
To promote Good Governance and Public
Participation
To promote Planning and Performance Management
To enhance communication and public participation
To promote good governance and community
Participation
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4.3 MUNICIPAL TRANSFORMATION AND ORGANIZATION DEVELOPMENT.
The core business of this Key Perfomance Area is to build a capable institution
4.3.1. STRATEGIC OBJECTIVES:
TO PROMOTE GOOD GOVERNANCE AND ACCOUNTABLE GOVERNMENT
INTENDED OUTCOME:
Informed decisions taken
The municipal council together with its administrative wing is committed to transparent
and accountable governance. The District Municipality is an executive type of
Municipality and is governed in terms of an Executive Mayoral Committee System. The
broad range of public participation programmes and processes bears testimony to the
commitment to involve its communities in its planning and decision-making processes.
The district has established Municipal Public Accounts Committee (MPAC); Portfolio
Committees and Audit and Performance Management Committee; Misconduct Board and
other relevant committees which serve as advisory committees to council. The Mayoral
Committee has been established to advise the Executive Mayor
TO ACHIEVE POSITIVE EMPLOYEE CLIMATE
INTENDED OUTCOME:
Equal representation of demographics through employment equity
The Municipality approved an Employment Equity Plan during 201 which targets
employment ratios that reflect the racial demographics of the community. The
municipality is expected to report on the progress made regarding the implementation of
the plan. The Employment Equity Report wa submitted online to the Department of
Labour on the 15th January 2019 to ensure compliance with legislation.
The Employment Equity Committee has been appointed by the Municipal Manager in
2018 and was subsequently trained by the Department of Labour. The Committee is
expected to review the Employment Equity Plan and align it to the current situation
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TO PROMOTE SKILLS DEVELOPMENT
INTENDED OUTCOME:
Improved performance through skilled employees
The skills audit assessment is conducted by the skills development section on annual basis
to determine the training needs of the entire workforce for incorporation into the
Workplace Skills Plan for implementation and submission to LGSETA. The required skills
needed by officials were received from some departments and have also been included in
the training plan.
Due to financial constraints, the district municipality is unable to comply with the Skills
Development Levies Act by making provision of 1% of the total salary bill for the purpose
of skills development in the municipality.
TO IMPROVE INFORMATION TECHNOLOGY EFFICIENCY
INTENDED OUTCOME:
Effective communication through information technology infrastructure
Information and Communications Technology (ICT) is a vital part of any organisation’s
capability. The municipality is in the process of acquiring the services of State
Information Technology Agency (SITA) to assist in the development of the ICT Strategy
Plan and Business Continuity (Disaster Recovery) Plan which should be completed by
end of June 2020
The municipality plans to connect the Head Office with Regional Offices as this strategic
approach will assist in cost reduction and enhance performance and decision making
TO PROMOTE ACCOUNTABLE, EFFICIENT AND TRANSPARENT
ADMINISTRATION
INTENDED OUTCOME:
Legally compliant, accountable and transparent administration through
compliance to legislation and policies
Provision of legal services to assist the municipality with legal related matters with
specific reference to litigations; contract management and labour related cases which
needs Courts of Law representation. It is imperative for the municipality to ensure that
all contracts entered and concluded are compliant to legislation. The contract
Management Register has been developed to track a
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4.4 GOOD GOVERNANCE AND PUBLIC PARTICIPATION
4.4.1 Intergovernmental Relation Strategy
Inter-governmental Relations Framework Act was passed in 2005 to make sure that the principles in Chapter Three of the Constitution on Cooperative Government are implemented, seeking to set up mechanisms to coordinate the work of all spheres of government in providing services, alleviating poverty and promoting development. The Act, also establishes a line of communication that goes from Municipalities to the Provinces and directly to the Presidency and empowers Inter-governmental Forums to be established at District level, where they would consist of the District Mayor and Local Mayors. Inter-Governmental Relations go beyond the Act, and the Municipal Finance Management Act also requires consultation in the budgeting and planning process of which at Provincial level, technical committees should meet regularly to facilitate contact between Departments and Municipalities to make sure that there is an alignment of planning priority strategies and resources between Provincial and Municipal Government, this requires ongoing communication and open lines between the different spheres of Government.
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Establishment of IGR Structures: The following structure are established according to the provision of the intergovernmental Relation Framework Act 13 of 2005
FORUM NAME BRIEF DISCRIPTION
Mayoral Forum Mayoral Forum Discusses Issues Pertaining to Good Governance
and Accountability within the District.
District
Speakers
Forum
District Speakers Forum Discusses issues affecting conduct and
the development of the councilors in the District.
Chief Whip’s
Forum
Comprises of Council Whips of all Local Municipalities in the
District, chaired by the District Chief Whip to discuss
constituency and governance issues.
Municipal
Managers
Forum
Comprises of Municipal Manager of the constituent
municipalities and the district. It deals with regional strategic
issues for effective service delivery
Chief Financial
Officer’s
Forum
Discusses regional issues relating to the implementation of the
MFMA.
Provides financial advice to the Municipal Manager’s Forum.
NMMDM
Governance
Structure
This structure comprise of the Chief Whip, Executive Mayor,
Municipal Manager and Speaker.
It monitors the implementation of council resolutions and
performance by receiving departmental reports from the
Municipal Manager.
Technical
Forum
Discuss projects, progress on all service delivery interventions in
the district
Intergovernme
ntal Relations
Forum
Serves as a consultative forum for the district municipality and
the local municipalities to discuss and consult each other on
matters of mutual interest.
District
Communicato
rs Forum
Comprise of all local municipalities, provincial departments,
private sectors, parastatals to align, market and communicate
key activities implemented in the District.
Local Labour
Forum
Trade Union shop stewards and management discuss workers
issues.
4.4.2 Development and Town Planning Service
Planning and Development is the term for a group of activities that are central to the management and long-term development of Ngaka Modiri Molema Municipality. What we do informs a number of key processes that shape the future of the District, both physically and economically. In terms of the District physical development it includes Integrated Development Planning which provides an integrated framework to improve the quality of life for all the people living in the area taking into account existing conditions and the resources available for development. Planning and Development include all town and regional planning functions and spatial development, as well as building control and the management of all municipal property.
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Development and Town Planning Services split into four sections: • Integrated Development Planning Town and Regional Planning Social Facilitation
District Economic Growth and Rural development
Integrated Development Planning Unit
The purpose of this Unit is to manage, monitor and ensure the development and effective implementation and monitoring of the Integrated Development Plan (IDP). An IDP, adopted by council of a municipality, is the key strategic planning tool for the municipality. As one of the key departments in the municipality the IDP Unit has many responsibilities that are linked to the success of Ngaka Modiri Molema District Municipality. Some of the Unit’s key responsibilities are: Manage and coordinate the process of developing, implementing, monitoring and reviewing the Integrated Development Plan (IDP); Monitoring and overseeing the alignment of sectoral plans with the IDP; ensuring that the municipality gives effect to and conducts its affairs in a manner which is consistent with the IDP and achieves the strategic development priorities and objectives as reflected in the IDP. This then ensures that the IDP is compliant with legislated requirements, strategic and integrated; and linked to the resources of the municipality. Ultimately, the IDP is agreed between local government and residents of District municipality, and thus a fine balance needs to be struck in allocating scarce resources.
Town and Regional Planning Unit
SPATIAL DEVELOPMENT FRAMEWORK (SDF Ngaka Modiri Molema District Municipality SDF Spatial Development Framework (SDF) and Land Use Management System (LUMS) In terms of Chapter 5 of the MSA, each local authority is required to compile an Integrated Development Plan for its area of jurisdiction. According to Section 26 of the MSA the SDF is one of the core components of the IDP. SDF was last compiled in the 2007/08 financial year which means that the District is faced with a challenge of developing a new SDF. The process is unfolding and we hope to have a credible and valid SDF come the end of 2018/19 finacial year.
Approach:
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The Anticipated Structure of the Proposed District SDF
A structured framework will be formulated within which the compilation of this SDF will be structured and approved in time for the first review of the District IDP in 2019-2020. This framework has 3 substantive spatial themes i.e. Socio-economic, biosphere and built environments, it is expected that the proposed SDF will address these 3 themes holistically.
Beyond the generic objectives of the SDF, the compilation process will address amongst others the following:
Ensuring that the new District SDF document complies with legal requirements and be conversant with recent developments in the five constituent local municipalities and entire planning within the region.
Incorporation and alignment of all relevant information and proposals derived from proposed, existing strategic documents such as the:
National Development Plan (NDP)
Draft North West SDF
District Rural Development Plans (DRDP) and Provincial Villages Township & Small Dorpies (VTSD) policy.
The following proposed plans: Groot Marico Biosphere, District Integrated Transport Planning (ITP), Public Transport Plan (IPT) and Environmental Management Framework
Ensuring horizontal integration between the neighboring District SDF’s and vertical integration with the local SDF.
Ensuring public and governmental participation of the concerned stakeholders in the planning process, namely (inter alia) the communities of the constituent Municipalities, neighboring district municipalities to address the impact of cross-cutting issues on spatial development concepts and their consequences thereof, provincial sector departments, parastatals and business forums, interests groups & traditional leaders.
Creating a strategic framework to facilitate the development of an appropriate land use system through SPLUMA.
Expectations Once complete, the anticipated District SDF has to achieve the following:
Indicate the spatial implications of the IDP projects of the NMMDM. Put forward development and management strategies, proposals and guidelines that will promote sustainable development in NMMDM, including, without being limited to, development objectives, environmental planning, transport planning
infrastructure planning, so as to promote the general well-being of the people of the District in the most effective manner
An assessment of the agriculture potential of Ngaka Modiri Molema, substantiated with action plans that are contained in the adopted District Rural Development Plan (DRDP), amongst others, advocate for the strategic supported of the three components of Agri-Parks i.e. Farmer Production Support Unit
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(FPSU), the Agri-Hub (AH), and the Rural Urban Market Centre Unit (RUMC), the conservation of usable agricultural land and management of the district’s river systems.
The overall expectations will be to formulate spatial strategies that are in line with the district’s IDP principles and common spatial planning approaches, taking into account that Ngaka Modiri Molema District Municipality is a generally a rural district municipality with vast tracts of agricultural land. The following activities will be completed as part of this phase: District Spatial Planning In Perspective over the Local Municipalities Spatial Planning is not a shared function between Ngaka Modiri Molema District and its Local Municipalities; however the District’s Town Planning unit plays an active critical role as and when requested at the five local municipalities. The latter have compiled their SDF’s as part of their IDP’s and the district formed part of the steering committees during the SDF said compilations. During these procedures, ideally the district SDF should deal with the cross-boundary issues and spatial implications of the exclusive powers and functions of the district municipality. Any inconsistencies in the spatial planning process between the three entities (province, district and local) should be eliminated and detailed coordination endeavors promoted. This is even more important given the regional and strategic geographic location of Ngaka Modiri Molema District as the gateway to neighboring countries. The proposed district SDF will adopt a service centre approach and establish a clear hierarchy of centres with Mahikeng being the primary centre or the district. Mahikeng is the largest centre in the district and is anticipating growth in importance as the primary economic core through the Mahikeng Renewal, Rebranding Repositioning Programme (MRRRP). It is characterized by a semi-developed and diversified peri-urban economy, comprising most of the government oriented services in the district. As the administrative centre, it provides a range of higher-order services for the whole district. The District is an important transport corridor (N4 and R508) which are the getaway to Botswana and possess tourism infrastructure that is underutilized. Most of the secondary rural settlements and high agricultural potential areas in the district have strong functional links with Mahikeng and can, to some extent, be considered extensions of the district’s economic core.
NMMDM Integrated Transport Plan (ITP) and Integrated Public Transport Networks (IPTN) Currently in process, is the establishment of the Ngaka Modiri Molema District Integrated Transport Plan (ITP) done under the auspices of the Provincial Department of Community Safety and Transport Management (DCS&TM) with the District having seat in the steering committee.
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Once completed and endorsed by the MEC, the District Council will adopt the ITP and incorporate it into the IDP as it will provide a detailed analysis of the current transport infrastructure including public transport services, road networks and traffic, public
transport infrastructure, non-motorized transport and scholar transport.
The District’s Integrated Public Transport Networks (IPTN) is also underway and it was scheduled to be completed by July 2017. The IPTN’s focus will be on transport needs assessment and come up with proposals for the improvement of transport, in particular public transport within the District’s neglected areas especially the Villages Township’s and Small Dorpies (VTSD) of the province as demanded by the VTSD policy. Project priorities will be outlined and a five-year budget and implementation plan be attached to the DITP where the district will work in collaboration with the concerned Provincial Departments.
Ngaka Modiri Molema District Rural Development Plan (DRDP)
The last decade has witnessed a shift in South Africa’s development planning policies and spatial planning processes and this shift has been characterized by a deliberate turn towards rural development. In other words, instead of focusing mostly on urban areas, the government is now investing a considerable amount of financial, technical and human capital in improving the lives of people residing in rural areas. As such, the Department of Rural Development and Land Reform (DRDLR) mandate of fostering rural development is premised on the realization that the country can achieve significant socio-economic benefits by developing rural areas. As the DRDLR’s Comprehensive Rural Development Programme (CRDP) promises to address a number of the challenges with delivery from identification, initiation, planning and importantly implementation, the need for credible, well-thought-out and implementable District Rural Development Plans (DRDP’s) becomes apparent. The narrative on the everyday harsh realities faced by millions of people residing in South Africa’s rural areas is well documented in various policy documents and strategies. Apart from the CRDP, the National Development Plan (NDP) dedicates chapter 6 on the salience of reviving rural economies and in realizing these rural development aspirations, DRDPs must be formulated as a matter of urgency. These DRDPs are meant to complement existing strategic spatial plans located in all three spheres of government. Put succinctly, the DRDPs will render the needed ‘rural development component’ to the country’s existing intergovernmental and cross-sectoral strategic spatial planning system. DRDPs therefore, infuse well-targeted developmental thrusts to a family of spatial planning instruments namely, the National Development Plan (NDP), the Spatial Planning and Land-Use Management Act (SPLUMA), the envisioned National Spatial Framework (NSF), Provincial Growth and Development Strategies (PGDSs), Provincial Spatial Development Frameworks (PSDFs), Integrated Development Plans (IDPs), and Local Economic Development Plans (LEDPs) across all three spheres of government.
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The proposed DRDPs will transform the rural space economy towards promoting even and quality service delivery to all South Africans.
The inequality of the past is more vivid in rural areas since spatial planning had neglected these areas for quite a long time. Land use practices in these areas were in most cases done in an unsustainable manner with no proper plans in place to manage and guide development to maximize improvement of livelihoods of the rural communities, and as a result, these areas have been left displaced, segregated, underdeveloped and impoverished and in most instances people were left with no option but to travel long distances to places of better employment, access to services and economic opportunity. Most of South Africa’s rural communities remain marginalized in socio-spatial and economic terms as a result of the outcomes of colonial and apartheid history. Ngaka Modiri Molema was one of the three priority district municipalities (with Bojanala and Dr. Ruth Segomotsi Mompati) identified as being among the areas characterized by socio-economic inequalities which result in high levels of poverty in the areas. However, the districts consist of highly potential agricultural land and tourism sites. There is also lack of access to basic needs such as portable water supply, which in turn affects the developmental objectives of the constituent municipalities in these districts. Most of the rural areas in Ngaka Modiri Molema district municipality are still currently characterized by service delivery backlogs. As a result, the inability of communities to access these basic services will lead to constraints in improving the quality of life of the rural communities and also achieving economic development within those areas. The compartmentalized spatial form of settlements and lack of economic opportunities in these districts results in community members depending on services located far from their places of living. Consequently, rural communities have to spend more money and time in order to access places of employment and other opportunities. The land development in these regions is scattered with an absence of a strong nodal hierarchy. There are certain factors that influence land use patterns currently which mainly include uneven topography and membership of the community and traditional land allocation practices. Furthermore, the current land use pattern has evolved in response to the economic trends, settlement patterns, rural character of the districts, applicable planning policies and land use management practices such as formal and customary. The District Rural Development Plan was prepared and plans are afoot to integrated it with existing national, provincial and municipal plans, processes and priorities, in terms of both the content of the various plans and the various structures involved in the management and alignment of planning processes, such as IDP forums etc. There is a critical need for alignment between sector departments, parastatals and the municipal development agenda in ensuring integrated and sustainable development. As a result, DRDLR deemed it necessary to develop District Rural Development Plans that will assist in identifying and unlocking opportunities of these rural spaces of South Africa to ensure that they achieve their development potential.
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Holistically DRDP seeks to maximize the use and management of natural resources to create vibrant, equitable and sustainable rural communities. This includes: contributing to the redistribution of 30% of the country’s agricultural land; improving food security of the rural poor; and creation of business opportunities. In line with the DRDP, the plan will, in the short to medium term, prioritize the revitalization of rural towns, stimulation of agricultural production with a view to contributing to food security, and aggressive implementation of land and agrarian reform policies. In the long-term, it will provide for the transformation of rural settlements into efficient, generative and sustainable settlements. This includes the protection of natural resources and identification of areas with potential for investment and job creation.
Spatial Planning and Land Use Management Act No. 16 Of 2013
The role of local government in spatial planning has been re-energized through the introduction of the Spatial Planning and Land Use Management Act No. 16 of 2013 (commonly known as SPLUMA). The intention of this national legislation is to introduce the norms and standards for spatial planning and to specify the relationship between spatial planning and land use management. This is intended to create uniformity and consistency on the manner in which both spatial planning and land use management is practiced within the whole country. All the five constituent local municipalities opted for the stand alone Municipal Planning Tribunal (MPT) sanctioned SPLUMA, the town planning unit of the district has played a pivotal role in the compilation of the SPLUMA compliant SDF and Land Use Scheme (LUS) of Ramotshere Moiloa. SPLUMA stipulate the need to prepare Spatial Development Frameworks (SDFs) by all municipalities including the Districts.
The Role Played by the District’s Town & Regional Planning Unit
The Town & Regional Unit performs the following role:
Co-ordination of the preparation of key spatial strategies using 5- to 10-year projections for the overall development of the District by collaborating with other sector departments and local municipalities;
Designating and protecting areas of critical natural capital such as recreational areas, water resources and mineral resources through the Environmental Management Framework (EMF);
Ensure there is significant complimentary link in terms of the use of land that cut across the five local municipalities;
Support role to the constituent local municipalities spatial planning to ensure conformity with national and provincial strategies
Assist constituent Local Municipalities with the implementation of SPLUMA: Facilitate the formation of Municipal Planning Tribunals (MPT’s). Draft and facilitate agreement of establishment of Joint MPT’s . Provide admin support to Joint MPT’s.
Geographic Information Systems (GIS)
GIS is a vital tool for the District and its five constituent local municipalities used for planning, decision making, monitoring development and service deliver in terms of Spatial Data Infrastructure (SDI) Act 54 of 2003
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Town & Regional Planning units at local government can effectively use GIS to streamline and monitor development trends as well as assist their respective municipalities to generate revenue collection (Valuations Departments) once development applications have been processed, An integrated enterprise GIS solution is critically needed to encompass NMMDM and its constituent local municipalities. The unit utilizes ESRI-SA software products (Arc-GIS) which enables it to execute the following functions:
Capturing of spatial, non-spatial data and metadata thereof, for the District at large.
Development and management of base datasets on various municipal basic services for the purpose of record keeping and asset management
Continuous management and achieving of the spatial data in order to sustain data integrity for informed decision making, problem solving, resource distribution and many more.
Provision of spatial data to both internal and external clients for various purposes in digital format and hard copies such as maps and reports.
Social Facilitation Procedure Manual (Strategy) Unit The Manual seeks to ensure that projects and programmes of Ngaka Modiri Molema District Municipality are properly facilitated before implementation. Facilitation of District Calendar of Events which is intended to educate / empower communities intensively depending on nature of each event
The programme will continually empower communities on water provision by-laws & health / hygiene campaigns. Facilitation of the District War on Poverty Programme which is expected to be implemented on the identified poverty stricken wards.
4.4.3. COMMUNICATION SERVICES
Ngaka Modiri Molema District Municipality is cognisant of the fact that “an informed community is a happy community” and therefore puts a high premium on effective and regular engagement with all sectors of society. Communication builds communities and therefore Council has adopted a comprehensive communication plan to address internal and external communication more effectively.
Various mechanisms are currently in place to communicate with the public and other stakeholders on a regular basis.
The establishment of a dedicated personnel in Communication illustrated the commitment from council to enhance effective and professional communication that give effect to the principles of Back to Basics as pronounced by the President with
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the Executive Mayor being the face of the Municipal as well the Chief Communicator with powers to delegates some of the responsibilities.
The upgrading of an interactive website and social media also contributed towards a more corporate image of the municipality and valuable information is being disseminated via these mediums.
The Municipal Manager also ensures that all strategic documentation and policies are placed
on the official website of the municipality as required by the MFMA in order to promote
transparency and accountability
Communication Strategy
The Five year Communication Strategy 2017/22 will be reviewed annually to provide a framework for a coordinated communication system in the District for the re-alignment of National and Provincial Priorities of the new administration elected in May 2014 and August 2016 Local Government Election The objectives of the communication strategy are to contribute towards the realization of the developmental objectives as encapsulated in the NMMDM District Integrated Development Plan and underpinned by the business values of integrity; consultative, accountability, committed, proactive, people centered and service excellence and further provide regular and consistent communication environment analysis;
Communication Protocol
The following protocol should be observed:
Role Player Authorized Massages
Executive Mayor All aspects of Council policy and programmes
Matters of policy yet to be adopted/enacted
Implementation of the Municipal IDP
Is the face of the District Municipality
Speaker All comment relating to Council rules or order must
come from the speaker
Council matters decide in cases where an
administrative action materially and adversely affects
the right of the public and bylaws impact on the
community
Is key person for all public participation unless
delegates otherwise
Follow up on the contemporary and current issues
Councillors Community needs, public participation, current
affairs, emerging communication risks, information on
ongoing government and municipal programmes
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Ward
Committees
(Local
Municipalities)
Channel of communication between the municipality
and the community
Give feedback on community expectations,
Communicate municipal policies to the community,
Communicate issues timely and promptly to the
community,
Together with CDW develop a profile and baseline
database of each ward,
Community mobilization
Promote Local Government Services to the
community
Attend to strategic ward committee meetings
Empower ward committees
Municipal
Manager
Any area of District Municipality administration
Matters of policy yet to be adopted/enacted
Information around any legal processes the District
might be engaged in.
Deal with performance management issues that pose
a threat to the image of the municipality.
Make report available to the public for comments
and scrutinization and inputs
All matters determined by the Council.
Any matter relating the running of the District
Municipality
Role Player Authorized Massages
District Municipal
Spokesperson or
Manager
Communications
Coordination of media communication, content
development, media monitoring, media
conferences, media statements and handling media
queries.
Communicate council resolutions and municipal
programmes to the public
Branding and corporate identity of the municipality
Speech writing
Communication Research and environment analysis
Convene and Chair the District Communicators’
Forum;
Edit all Municipal Publications;
Management of the Municipal Website and Social
Media
Community
Development
Workers (Local
Municipality
level)
Develop community on strategic development issues,
improve standard of living, capacity and knowledge
of the community in line with the District Municipality
programmes,
Promote local government services to the community,
Attend strategic Ward Committee meetings,
empower ward committees
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Communications
Forum
Consists of Head of Communication in local
municipalities within the district.
Consists of all national and provincial sector
departments having a seat within the district
Consists of water service boards; government entities
and parastatals
The Role of Communication in Public Participation
Public participation through communication is a continuous, planned, structured and an organised model in the promotion of development, working towards changing the attitudes and/or behavior of the general public, through the dissemination of reliable information and through encouraging the active and conscious participation of the broad public in the process. Most often, public participation implies broad-based communication, the provision of accurate and reliable information to the general public. The effectiveness of any participation process is fundamentally linked to the institutional capacity of the District to maintain an effective communication system.
Customer Relations
A merger of all call centers in the District Municipality to be centralized in order provide integrated services/shared service for all local municipalities, national and provincial government is essential to provide a telephonic interface with the public which acts as a frontline information provider to the public. The interface will usually address queries concerning fire and disaster services, water and sanitation supply, infrastructure maintenance and related types of basic service delivery provided by the district municipality. This service should be provided by way of District toll-free number 086 66636 through which residents can enquire or request assistance about any type of service that the District and Local Municipalities should offer to them.
4.4.4. PERFORMANCE MANAGEMENT SYSTEM
The Council of NMMDM has vowed to instill a culture of performance throughout the organisation for their entire term of office. This can largely be attributed to a well-developed Performance Management System (PMS) adopted and implemented as required by section 152 of the Constitution, Chapter 6 of the Municipal Systems Act, (Act 32 of 2000) (MSA) and the Municipal Finance Management Act, (Act 56 of 2003) (MFMA).
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The administrative as well as the political leadership of the municipality are highly performance oriented which ensures mostly that the objectives of the council as reflected in the IDP are being implemented.
Service Delivery and Budget Implementation Plan (SDBIP)
The Service delivery and Budget Implementation Plan (SDBIP) is a key instrument within local government to manage coordination between service delivery and budget priorities. Once the IDP and budget have been prepared and approved, the municipality prepares the SDBIP in accordance with the MFMA and Circular 13.
The SDBIP indicates quarterly performance targets financial performance targets and assigns responsibility to execute the respective performance targets. The municipality assesses its performance on a quarterly basis and reports progress on performance against targets set to Council
4.4.5. Internal Audit
Internal auditing is an independent, objective assurance and consulting activity designed to add value and improve the municipality’s operations by evaluating the effectiveness of governance processes, risk management and controls. Internal audit derives its mandate from section 165 of the MFMA which provides that each municipality and each municipal entity much have an internal audit unit.
Its scope includes assessing the adequacy and effectiveness of:
internal controls by evaluating:
Reliability and integrity of financial and operational information Economic acquisition of resources and efficient and effective employment of
those resources Safeguarding of assets Compliance with laws, regulations, policies, procedures and contracts Accomplishment of objectives
risk management by evaluating the: control environment risk identification process, control activities, risk treatment/ management Communication and monitoring of risks
Governance processes by evaluating the: Effectiveness of ethical culture, tone set at the top Policies developed and enforcement of these policies Effective governance structures
Internal Auditors has unrestricted access to employees, property and records in terms of the Internal Audit Charter. Internal audit reports functionally to the audit committee and administratively to the Audit committee.
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4.4.6. AUDIT COMMITTEE
The process of appointing Audit Committee (AC) members has been finalised. The AC is an independent governance structure/ committee of council, whose function is to advise council, political office bears, accounting officer and management staff of the municipality on matters relating to:
Internal audits Internal financial control Accounting policies Performance management Performance evaluation Risk management Effective governance
Compliance with MFMA, Annual Division of Revenue Act and applicable laws.
The Audit Committee reviews the Annual Financial statement of the municipality and provides a credible view on the accuracy and adequacy of financial reporting. Audit Committee provide oversight role on the system of internal control, risk management and governance processes. The Audit committee derives its mandate from section 166 of the MFMA which provides that each Municipality must have an Audit Committee. The effectiveness of the audit committee depends on the committee making recommendations to council and the council accepting and implementing those recommendations.
4.5 PROVISION OF INFRASTRUCTURE FOR BASIC SERVICE DELIVERY Basic Service Delivery and Infrastructure Management
The Water Services Act (Act 108 of 1997) requires every municipality to draft a comprehensive Water Services Development Plan (WSDP). The WSDP is also regarded as one of the sector plans of the IDP because most of the planning for development being social, economic or environmental will depend on access to water services. Ngaka Modiri Molema District Municipality has been registered as a Water Services Authority in terms of the abovementioned act and therefore has to ensure that all its customers receive efficient, affordable, economical and sustainable access to water services.
Currently the WSDP of NMMDM is still in a draft stage and it must go through the necessary processes for it to be tabled at the Council sitting for adoption. The draft WSDP of NMMD highlights specific issues with regards to water management and strategies to ensure the sustainability of adequate water to the end users in the municipal area. It also sets targets for interventions with a specific focus on the following aspects:
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Basic water and sanitation services to each and every household in the District Sustainable water supply to ensure the health & wellness of communities Access to bulk water supply to attract industrial and other types of economic
development to the area
Ensure quality and clear drinking water to all consumers Establishment of infrastructure to ensure adequate storage capacity Rehabilitation of ageing infrastructure in order to ensure the long term
sustainability of water services Continuous monitoring and control of water losses
Adequate water pressure for all consumers
Municipal Infrastructure Grant (MIG)
Business Plans have been submitted to MIG and approvals granted. (Refer to Chapter 6 for a list of projects).
4.6 COMMUNITY SERVICES
The Municipal Health and Safety Directorate is formed by four (4) major services to the Ngaka Modiri Molema District Municipality, namely Fire and Rescue Services, Municipal Health Services, Disaster Management Services and Internal Security Support Services. As part of government’s vision of decentralising some of its significant services, municipal health and fire and rescue services were escalated from the various local municipalities into the key functions of the district municipality. It is against this that the Ngaka Modiri Molema District Municipality acquired and is undertaking Fire and Rescue and Disaster Management Services at the following local municipalities: Ditsobotla;
Tswaing; Ratlou; and Ramotshere Moiloa
The Municipal Health Services Unit is currently servicing communities in all the five (5) local municipalities including Mahikeng. The Fire and Rescue Services is currently operating five (5) fire stations located at the following:
Lehurutshe; Setlagole; Delareyville;
Lichtenburg; and Itsoseng
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4.6.1. Fire and Rescue Services
Description of the service
In line with the Fire Brigade Services Act No. 14 of 2000, SANS 10900 – the Fire and Rescue Services Unit is a service unit that is equipped to manage fire brigade and rescue services in the district. Functions of the Unit To manage fire brigade and rescue services with the Ngaka Modiri Molema District
Municipality. To liaise with all relevant government departments, NGO’s and other entities on
issues pertaining to fire brigade services.
Lead and manage all fire stations in the district in line with powers and functions and other relevant statutory requirements.
Exercise control over the usage of brigade fleet and other equipment in the fire and rescue service.
Enforce and implement fire legislations and by-laws.
4.6.2. Disaster Management
Description of the service
In terms of the Disaster Management Act No 57 of 2002 – Ngaka Modiri Molema District Municipality is required to establish a Disaster Management Centre in order to reduce risk to disasters and further outline responses and recoveries. Functions of the Unit
Initiate the implementation of any contingency plans and emergency procedures. Promote disaster management capacity-building aspects in disaster management
services.
Implement risk reduction plans and recovery strategies in communities in the district.
Ensure that all operational tools and equipment are in good working condition. Prepare monthly reports of statistics of incidents and formulate service level
agreements with bordering municipalities. 4.6.3. Municipal Health Services
Description of the service In terms of Section 84 (1) of the Structures Act, 117 of 1998 – the Ngaka Modiri Molema District Municipality is obliged to provide municipal health services to its communities. This Unit must further ensure adherence to the nine (9) key performance areas of the National Health Act No. 61 of 2003.
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Functions of the Unit
Ensuring that the nine (9) Key Performance Areas of Municipal Health Services as defined by the National Health Act No. 61 of 2003 are provided and monitored throughout the district.
Ensuring that stakeholders’ data is maintained and communication lines between Municipal Health Services and stakeholders are open and updated regularly.
To record statistics and report on trends in the work station, compile monthly reports and submit to Council. This must be aligned to the Batho Pele principles.
Undertake routine inspections, assessments and recommend remedial actions on non-compliance.
4.6.4. Internal Security Support Services
Description of the service In terms various legislation pertaining to security-related matters, the Internal Security Support Services of the Ngaka Modiri Molema District Municipality is mandated to do the following functions:
Conduct security threats and risk assessments of municipal assets and employees; Conducting security awareness programmes; Conduct security vetting on all municipal employees; Develop and manage security policies and plans; Create a safe and secure environment by patrolling and investigate any crime (in
and around municipal premises) and refer it to relevant law enforcement agencies if needed.
4.6.5 Economic Development
The District Economic Development Unit enables the municipality to develop policies, design programs and implement projects aimed at improving the socio-economic conditions of the district. Due to the rural nature of the district, the Unit extends to also include a critical element of rural development aimed at finding ways to improve the livelihood of rural communities.
In order to ensure that the above is achieved, the District will adhere to the pronouncement of Rebranding the economic land scape of the villages within its jurisdiction and repositioning the community members who are passionate about being entrepreneurs of choice. This will lead to the renewal of the municipality as well as the lives of our community members at large.
DGDS Strategy:
The District Economic Development unit has developed a District Growth and Development strategy aimed at improving the livelihood and economic growth of the Ngaka Modiri Molema community.
This Strategy was developed five years ago and need to be reviewed and aligned to the National and Provincial Development Plan. The PDP provides a common vision, goals and objectives of what should be achieved to influence provincial growth and development.
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Currently the District Municipality is engaging with strategic partners inclusive of Local Municipalities to kick start with the process of developing the District Growth and Development Strategy.
Objectives of DGDS Strategy
The objectives envisaged to inform the development of District Growth and Development strategy are:
• To rebrand, Reposition and Renew Ngaka Modiri Molema District Municipality • To position Agriculture, Culture and Tourism (ACT) as sustainable economic drivers
in the District • To position and develop villages, Townships and Small Dorpies (VTSD) economies
in order to contribute to economic growth of the District. • To pave a platform for growth and economic development programmes in the
district; • To promote growth and development through Saamwerk Saamtrek philosophy.
To promote job creation through targeted public and private sector investment, skills development and empowerment of the SMME sector.
Key Pillars
Economic development • Job creation • Skills development • Tourism promotion • Manufacturing and Small Business Development • Investment Promotion • Mining and beneficiation • Waste Management and Recycling Programmes
Agricultural Cooperatives
Alignment of DGDS
The District Growth & Development Strategy will be reviewed annually to align with national and provincial strategies.
District Rural Development Plan
The NMMDM Rural Development Plan is developed with the aimed to promote rural economic transformation through fostering Agricultural development as well as other existing economic sectors. The envisaged transformational change aims at promoting sustainable rural development meaning improving the quality of life of Communities within the District Municipality.
The aims of District Rural Development Plan are Improve competitiveness in the agriculture sector. Target and invest in agriculture and non-agriculture economic activities.
Promote competitive and sustainable businesses. Improve connectivity of villages with surrounding service towns.
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EPWP
The District Municipality has developed draft EPWP policy which will address issues of recruitment and selection and implementation thereof. The draft policy has to be adopted by Council for implementation. The programme will be implemented in our five Local Municipalities.
During the financial year 2017/2018 the District Municipality intend to create 85 jobs through EPWP, this target was achieved. For the 2018/19 the unit is targetting to create 80 job opportunities, this is as aresult of the grand being reduced as compared to that of 2017/18.
4.7 FINANCIAL SERVICES (BTO)
Financial viability within Ngaka Modiri Molema Municipality means the ability of the municipality to fulfil its constitutional and legislative responsibilities. To fulfil these obligations the municipality needs to generate sufficient income, of which the main sources are: • Government Grants which is subject to conditions set by government • External funding which is subject to external assessment • Revenue generated by government through service delivery With the means of the available resources the municipality will ensure to uphold its developmental mandate and be able to achieve the strategic objectives of Council. It is alarming to note the daily spates of service delivery protests from civil society across the country which indicates that the demand for services and development is increasing but the financial resources of municipalities are actually shrinking. The main focus areas to achieve financial viability include:
Budget Management
The budget proposals for the Medium Term Revenue & Expenditure Framework (MTREF) is informed by the municipality’s IDP, particularly in terms of objectives, outputs and targets envisioned for the next three years. The budget is currently prepared on consultation with every directorate to provide inputs regarding needs in their departments. Draft budget is presented to council, where the council makes adjustments to accommodate the community’s inputs.
It is important to note that realistic income and expenditure predictions must be made. The expenditure budget cannot be prepared in isolation with the income budget. It should be kept in mind that the municipality has limited resources to satisfy the unlimited needs of the community.
The municipality strives to always prepare the budget within the timeframe set by National Treasury, in order to conform to the National Treasury Regulations and the MFMA.
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Asset Management
A GRAP compliance Asset Register is compiled monthly and balances with the General. The registering, auditing and management of assets would ensure that the NMMDM has an updated Asset Management Register, and would also ensure that all NMMDM’s assets are accounted for at any given point and time.
It is important to note that all assets bought by the municipality must be affectively used by the municipality in order to facilitate optimal economic benefit for the municipality. All inefficient, unproductive assets of council and assets that have a financial burden on council are be put on auction on a regular basis. This will ensure future financial viability.
Store Management
The Supply Chain Management Unit is tasked with stores management which involves accounting for stock items in the NMMDM Main stores, ensuring that acceptable levels of stock items are maintained, as well as the timeous distribution of requested stock items to end-user Departments.
The proper management of Stores will assist in the smooth functioning of end-user Departments, which translate into an environment that enhances service
Acquisition Management
The Supply Chain Management Unit is tasked with the procurement of goods and services for the NMMDM. The SCM Unit will ensure that goods and services are acquired through approved Supply Chain Management processes. The acquisition of goods or services would, therefore, have to be executed in such a manner to ensure compliance with the Supply Chain Management Policy, relevant legislation and associate Regulations. The District will be in constant engagement with the relevant strategic partners in the spirit of sam-werk saam-trek to seek the wisdom in implementing the Provincial mandate in implementing the procurement policy that will address the poor growth in VTSD economies challenge
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NMMDM SECTOR PLANS 2018/2019
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THE SECTOR PLANS 5.1 INTRODUCTION
This section contains a summary of the status of the Sector Plans within Ngaka Modiri Molema District Municipality. These plans constitute the core components of our IDP and also play an important role in the process of integration. Some of the sector plans are not in place but the municipality, in partnership with other stakeholders and role players is in the process of developing them; others are in place but need some review since they are either outdated or do not assist the situation. The summary of the sector plans include the following: Disaster Management Plan (DMP) Water Service Development Plan (WSDP Skills Development Plan (SDP) District Growth and Development Strategy (DGDS)
District Rural development Plan Integrated Waste Management Plan (IWMP) Communication Plan Air Quality Management Plan (AQMP)
5.1.1 Disaster Management Plan (DMP)
Since 1994 after new dispensation there has been a change in the way we shoul of d approach disaster management in South Africa. The Costitution of South Africa, Act 108 of 1996 inparticular section 41(1)(b), 152(d), 156(4) and 229 places more emphasis on promotion well-being to the people of SA, health and safe environment as well as powers and functions including fiscal ones to the Municipalities. The District Municipality has developed a Disaster Management Framework to guide implementation of disaster risk management in NMMDM. In endevour to reliaze the implementation of disaster risk management across the entire district municipality, the District Disaster Management Centre normally encourages all Local Municipalities within its jurisdiction to develop disaster management plans and integrate them in their IDP’s as envisaged in section 26(g) of the Municipal Sysrtem Act No. 32 of 2000.
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5.1.2 Water Services Development Plan (WSDP)
The District Municipality does not have the WSDP. However the municipality will identify the technical team that will champion the development of the document with the support from DWS. The available Water Services Master Plan is covering only three (03) Local Municipalities (Ramotshere Moiloa, Ratlou and Tswaing Local Municipalities) and the information is outdated because is 3 years old (2012/13). Therefore there is a dire need for development of a complete new Water Master Plan that covers all five (05) Local municipalities
5.1.3 Skills Development Plan
The Skills Development Plan of NMMDM was developed in terms of the Skills Development Act (Act 97 of 1998) and the Skills Development Levy (Act 9 of 1999) which requires the employer to ensure quality of education and training in the workplace and to assist job seekers, retrenched and the unemployed to enter the job market with the required skills. The Workplace Skills Plan is derived from the organizational objectives contained in the IDP and the Strategic priorities of the Sector Skills Plan of the Local Government SETA. Through interaction with Organized Labour and the municipal Training Committee, the municipality submitted the Wordkplace Skills Plan/ Annual Training Report and Pivotal Report for the coming financial year to SETA as required.
5.1.4 District Growth and Development Strategy (DGDS)
The District Growth and Development Strategy is a key sector plan required by the municipality to guide all Economical development and functions in the municipal space. The reviewed document of the DGDS will assist to direct all issues relating to local economic development. Currently there is substantive LED Forum which is effective. The Growth and Development Strategy will assist the municipality in the following manner:
It will guide all Local Development Initiatives It will provide a formal framework within which SMME’s in NMMDM would function Will assist with the revival of the LED Forum and other sub-fora, namely, the Mining
Forum; Agriculture Forum, VTSD Chamber of Commerce etc.
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5.1.5 District Rural Development Plan
The District Rural Development Plan of NMM is developed with the aimed to promote rural economic transformation through fostering Agricultural development as well as other existing economic sectors. The envisaged transformational change aims at promoting sustainable rural development meaning improving the quality of life of rural Communities within the District Municipality.
5.1.6 Integrated Waste Management Plan (Iwmp)
The Constitution of the Republic of South Africa guarantees the rights to the citizens under section 24 and stipulates that “everyone has the right to the environment that is not harmful to their health or well-being”. In terms of the Environmental Management: Waste Act, 59 of 2008 each municipality must develop its IWMP and submit the plan to the MEC responsible for the Environment for endorsement and once the plan is endorsed by the MEC, include such plan on the IDP of the municipality. The Council adopted the IWMP and the plan was endorsed by the MEC on the 7th May 2018. The endorsed plan is now to be included in the IDP for implementation.
5.1.7 Communication Strategy
The Communication Plan is one of the sector plans which is also vital for the IDP document and for purposes of directing communication between the community and the municipality as well as between the municipality and other stakeholders outside the municipality. The municipality has a communication plan in place.
5.1.8 Air Quality Management Plan (AQMP)
The AQMP in terms of the Environmental Management: Air Quality Management, Act 39 of 2004, must be developed by the municipality and once adopted by the Council be included in the IDP of the municipality for implementation. Ngaka Modiri Molema District municipality has not developed the AQMP to date due to capacity challenges but has enlisted assistance from the province to develop the plan during the 2018/19 financial year
.
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NMMDM CAPITAL PROJECTS LISTS 2018/2019
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DITSOBOTLA LOCAL MUNICIPALITY
CAPITAL PROJECTS BUDGET 19/20 FY BUDGET 20/21 FY BUDGET 21/22 FY
DITSOBOTLA LOCAL MUNICIPALITY
WATER
BODIBE WATER RETICULATION R 25 877 916 R - R -
GAMOTLATLA WATER SUPPLY R 5 500 000 R - R -
GREATER LICHTENBURG BWS R 30 000 000 R 37 000 000 R -
MATILE 2 WATER SUPPLY R 2 500 000 R - R -
MEETMEKAAR AND SPRINGBOKPAN WATER SUPPLY R 3 000 000 R - R -
VERDWAAL 2 BULK WATER SUPPLY AND RETICULATION
R 700 000 R - R -
TOTAL WATER R 67 577 916 R 37 000 000 R -
SANITATION
DITSOBOTLA RURAL SANITATION PROGRAMME R 12 350 000 R 20 000 000 R 39 000 000
ITSOSENG WWTW UPGRADE R 25 000 000 R 20 000 000
LICHTENBURG WWTW R 35 000 000 R 4 000 000
TLHABOLOGANG BULK SANITATION (OUT FALL SEWER)
R 1 700 000 R - R -
TOTAL SANITATION R 14 050 000 R 80 000 000 R 63 000 000
TOTAL DITSOBOTLA LM PROJECTS R 81 627 916 R 117 000 000 R 63 000 000
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MAHIKENG LOCAL MUNICIPALITY
CAPITAL PROJECTS BUDGET 19/20 FY BUDGET 20/21 FY BUDGET 21/22 FY
WATER
DIBONO AND MANAWANA WATER SUPPLY R 5 000 000 R -
DITHAKONG TSA GA SEHUBA WATER SUPPLY R 10 000 000 R -
LONELY PARK WATER SUPPLY R 9 000 000 R 10 000 000
LOTLHAKANE WATER SUPPLY R 11 000 000 R 10 000 000
MADIBE-A-TAU WATER SUPPLY R 12 000 000 R 8 000 000
LETLHOGORING WATER SUPPLY R 10 000 000 R 10 000 000
SEBOWANA WATER SUPPLY R 13 000 000 R -
MANJA WATER SUPPLY R 5 000 000 R 10 000 000
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MAHIKENG LOCAL MUNICIPALITY
CAPITAL PROJECTS BUDGET 19/20 FY BUDGET 20/21 FY BUDGET 21/22 FY
MAHIKENG LOCAL MUNICIPALITY
MAGOGOE KOIKOI AND MAGOGOE CENTRAL WATER SUPPLY
R - R 10 000 000
MAJEMANTSHO WATER SUPPLY R 14 036 130 R 15 000 000 R 12 000 000
MATILE 1 WATER SUPPLY R 160 000
MAKHUBUNG WATER SUPPLY R 5 000 000 R -
MORAKA WATER SUPPLY R - R 3 000 000 R -
MOSHAWANE WATER SUPPLY (MAHIKENG) R - R - R -
MOTLHABENG(MAFIKENG) WATER SUPPLY R - R 3 000 000 R -
SCHOONGEZIGHT WATER SUPPLY R 1 500 000 R - R -
SETLOPO WATER SUPPLY R 8 000 000 R 9 000 000
SEWEDING , MAGOGOE TAR, PHOLA & PHATSIMA, MOCOSENG,. TLOUNG WATER SUPPLY
R - R - R 10 000 000
TOTAL WATER R 15 696 130 R 132 000 000 R 107 000 000
MAHIKENG MMABATHO WWTW PH2 R - R - R -
TOTAL MAHIKENG LOCAL MUNICIPALITY PROJECTS R 35 696 130 R 132 000 000 R 157 000 000
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RAMOTSHERE-MOILOA LOCAL MUNICIPALITY
CAPITAL PROJECTS BUDGET 19/20 FY BUDGET 20/21 FY BUDGET 21/22 FY
RAMOTSHERE-MOILOA LOCAL MUNICIPALITY
WATER
BRAKLAAGTE WATER SUPPLY R - R - R -
BORAKALALO WATER SUPPLY R - R 10 000 000 R 7 000 000
GOPANE WATER SUPPLY R - R 10 000 000 R 8 000 000
LEEUFONTEIN WATER SUPPLY R 24 000 000 R 7 000 000 R 9 000 000
LOBATLA WATER SUPPLY R - R 11 532 109 R 5 000 000
MMUTSHWEU WATER SUPPLY R - R 8 000 000 R 5 000 000
MOTLHABA WATER SUPPLY R - R 10 000 000 R 8 000 000
MOTSWEDI WATER SUPPLY R - R 10 000 000 R 9 000 000
TOTAL WATER R 24 000 000 R 66 532 109 R 51 000 000
SANITATION
GROOT MARICO WWTW R - R - R -
GROOTMARICO OUTFALL SEWER & RETICULATION R - R - R -
RAMOTSHERE-MOILOA RURAL SANITATION R 50 000 000 R - R 20 538 745
ZEERUST WWTP PHASE 2 R - R - R -
TOTAL SANITATION R 50 000 000 R - R 20 538 745
TOTAL RAMOTSHERE-MOILOA R 74 000 000 R 66 532 109 R 71 538 745
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RATLOU LOCAL MUNICIPALITY
CAPITAL PROJECTS BUDGET 19/20 FY BUDGET 20/21 FY BUDGET 21/22 FY
WATER
LOPORUNG WATER SUPPLY EXTENSION R - R 4 000 000 R 7 000 000
MAREETSANE WATER EXTENSION R - R 4 000 000 R 5 000 000
MATHATENG WATER SUPPLY EXTENSION R - R 4 000 000 R 10 000 000
MATLODING WATER SUPPLY EXTENSION R - R 4 000 000 R 8 000 000
PHITSANE-MAKGOBISTAD R - R 4 000 000 R 9 000 000
SETLAGOLE BULK WATER SUPPLY R 8 268 777 R - R -
TSHIDILAMOLOMO WATER SUPPLY UPGRADE R 13 053 646 R - R -
TOTAL WATER R 35 889 625 R 26 000 000 R 50 000 000
RATLOU RURAL SANITATION R - R - R 50 000 000
TOTAL RATLOU LOCAL MUNICIPALITY R 35 889 625 R 26 000 000 R 100 000 000
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TSWAING LOCAL MUNICIPALITY
CAPITAL PROJECTS BUDGET 19/20 FY BUDGET 20/21 FY BUDGET 21/22 FY
WATER
DEELPAN WATER SUPPLY PHASE 2 R - R 3 000 000 R -
KHUNWANA WATER SUPPLY R 4 000 000 R 7 000 000 R 4 000 000
OTTOSDAL BULK WATER SUPPLY & RETICULATION PHASE 2
R 17 000 000 R - R -
SANNIESHOF/AGISANANG BULK WATER SUPPLY & RETICULATION
R - R - R -
TOTAL WATER R 21 000 000 R 10 000 000 R 4 000 000
SANITATION
SANNIESHOF WWTW R 50 000 000 R - R -
TOTAL SANITATION R 50 000 000 R - R 50 000 000
TOTAL TSWAING LOCAL MUNICIPALITY R 71 000 000 R 10 000 000 R 54 000 000
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SUMMURY OF NMMDM MIG CAPITAL PROJECTS BUDGET
CAPITAL PROJECTS BUDGET 19/20 FY BUDGET 20/21 FY BUDGET 21/22 FY
TOTAL CAPITAL PROJECTS R 292 533 646 R 309 728 464 R 358 165 086,00
PMU BUSINESS PLAN R 6 945 354 R 7 545 354 R 8 145 354
TOTAL MIG FUNDS R 299 479 000 R 317 274 000 R 336 310 440
TOTAL WATER BUDGET R 169 531 000 R 231 160 000 R 212 000 000
TOTAL SANITATION BUDGET R 117 197 646 R 78 568 646 R 146 165 086
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COMMUNITY SERVICE
Key performance areas Key performance indicator Budget
Provision of Disaster Management
Services
Radios and Repitors R 4 700 00.00
Provision of Disaster Management
Services
Disaster Response and Relief
Material
R 1 800 000.00
Provision of Fire and Rescue Services Procument of Fire Engines R 10 200 000.00
Provision of Fire and Rescue Services Procurement of Personal Protective
Equipment
R 10 000 000.00
Provision of Municipal Health
Services
NMMD Integrated Waste
Management Plan
R 1 00 000.00
TOTAL R 28 700 000.00
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GROWTH AND ECONOMIC DEVELOPMENT
Key Performance
Areas
Key Performance Indicator Budget
Sector Promotion Review of District Growth and Development
Strategy (DGDS)
R 430 000.00
Sector Promotion SMME Supporp programmes/Project
R 200 000.00
Sector Promotion Tourism Development programme R 250 000.000
Business
Development
Registration of Cooporatives/Companies R5 000.00
Business
Development
Rural Development projects Supported R 400 000.00
Total
R1 285 000.00
Expanded public works
programme
Number of Jobs created through EPWP R1 235 000.00 ( Grant)
Expanded public works
programme
Number of Jobs created through EPWP R 500 000.00 EQ Share
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PUBLIC WORKS AND BASIC SERVICES (2019/20)
PROJECT/PROGRAMME
IN THE IDP
PERFOMANCE
INDICATOR
ACTIVITIES VTSD/LOCATION & WARD TIME FRAME BUDGET
INFRUSTRUCTURE MAINTENANCE AND DEVELOPMENT PROJECT TO BE IMPLEMENTED BY NMMDM Draught Relief/water and
sanitation services Access to free basic water and sanitation services on
temporary basis and Improvement of health and
hygiene
Water Tankering Desludging of VIP toilets and
septic tanks
All identified Villages in the District 12 Months R 12 000 000.00
Transfer to Local Municipality O&M of Water Infrastructure per Urban Area
Operational Subsidy Ramotshere R 4 000 0000 Tswaing R 4 000 0000 Ratlou R 4 000 0000 Ditsobotla R 4 000 0000 Mahikeng R 4 000 0000
12 Months
R 20 000 000.00
Ground Water Management Ground water management and monitoring.
Procurement of PSP Drilling of new boreholes Equipping of boreholes
All identified villages in the District 12 Months R 10 000 000.00
Yard Connections Programme/Water & Sanitation
Procurement of prepaid
metering devices for Peri-
uban in Mahikeng for cost
recovery purposes.
Installation of yard water
connections, procurement of
water meters, Vending Units and
maintenance of pre-paid stand
pipes.
Mahikeng Peri-Uban 12 Months
R 4 000 000.00
Electricity (Boreholes)/Water & Sanitation
Operational Water Infrastructure
Payment of Electricity usage All Wards in NMMDM 12 Months R 12 500 000.00
National Water Week Water Awareness Campaign Community education on Water Conservation
All rural areas in NMMDM 12 Months R 300 000.00
Water Quality Management Water Quality Management and Monitoring
Sampling Program, Safety Plans, Regulatory Performance Management System,
.
All Wards in the District Municipality 12 Months R 8 000 000.00
Supply & Delivery of scientific
equipments procurement of
chemicals
Procurement of a Service provider
Supply of Chemicals and basic testing equipments
All rural areas in NMMDM 12 Months
R 3 000 000.00
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Operations and Maintenance WWTP(Sanitation)
Waste Water Treatment Works attended with monthly scheduled
maintenance
Operation and Maintenance of 12 waste water treatment works
12 Waste Water Treatments within the District.
12 Months
R 60 000 000.00
PROJECT/PROGRAMME IN THE IDP
PERFOMANCE INDICATOR ACTIVITIES VTSD/LOCATION & WARD TIME FRAME BUDGET
Water Related Material Water supply schemes maintained/restored.
Supply of water material for repairs of boreholes, busting pipelines and Water Engines.
All wards in the District Municipality. 12 Months
R 20 000 000.00
Operation and Maintenance of Rural Water Schemes
Mechanical repairs of boreholes
Repairs, maintenance and supply of water engines, stands, storage tanks, pump houses and fencing.
All Rural Wards in the District
12 Months
R 14 000 000.00
Electrical repairs of boreholes
Electrical repairs on water pumps, supply, delivery and maintenance of high lift pumps, control panels
and motors
R 14 500 000.00
Bulk Water Purchase From Sedibeng Water
Servicing the Current Account for SW.
Payment of bulk water for provision of water to Peri-Uban Settlements around Mahikeng
Town
Majemantsho, Lomanyaneng, Setlopo, Tloung, Seweding, Ramosadi, Dibate, Motlhabeng, Tontonyane.Lowaneng,
Montshioa Stad
12 Months R 12 000 000.00
Operation and Maintenance plan Development of an operation and maintenance plan
Procurement of a professional service provider.
All Wards in the District 12 Months R 3 000 000.00
Personnel Protective Equipment Personnel Protective Equipment
Procurement of service provider for supply and delivery of PPE
All employees in the department 12 Months R 5 000 000.00
RRAMS. Number of RRAMS submitted to Department of Transport.
Development of Rural Roads Asset Management System
All Wards in the District Municipality 12 Months
R 2 691.000.00
Maintenance District Roads/Roads-Infrastructure
Length of municipal roads maintained
Re-gravelling, blading, installation of road signage, de-
bushing and maintenance of drainage systems.
All wards in the district Municipality 12 Months R 8 000 000.00
Procurement of Water Tankers and Honey Sucker
R 3000 000.00
TOTAL
R 211 991 000.00
87
88
Table B.5: HEALTH
Project No.
Project name Project Status
Ward Number
Municipality / Region
Type of infrastructure Expenditure to date from previous years
MTEF 2019/20
MTEF Forward Estimates
MTEF 2020/21
MTEF 2021/22
1. New infrastructure assets
Weltevrede Clinic
Practical Completion
24 Mafikeng New Clinic 29 114
1 500 - -
Bophelong Psychiatric Hospital Phase III Design
21 Mafikeng Last Phase of Hospital 23 448 34 200 109 767 167 293
Weltevreden Clinic HT
Construction 1% - 25%
24 Mafikeng HT,OD & QA 800
250 - -
Bophelong Psyc Hosp phase II B HT Tender
21 Mafikeng New Psychiatric Hospital 3 478 4 000 - -
Bophelong Psychiatric Hospital Phase II Practical Completion
21 Mafikeng (NW383) New Psychiatric Hospital
579 000 1 000 - -
Bophelong Psychiatric Hospital Phase II HT
Practical Completion
22 Mafikeng (NW383) New Psychiatric Hospital
9 616 3 000 - -
Section 42 Transfers Construction
Numerous Mafikeng (NW383) Transfers
1 400 500 - -
Moshana Clinic
Practical Completion
2 Ramotshere Moiloa New Clinic 30 393 1 000 - -
Moshana Clinic. HT
Construction 1% - 25%
2 Ramotshere Moiloa HT,OD & QA 1 000 500 - -
Motswedi Clinic Rebuild Tender
9 Ramotshere Moiloa (NW385) New Clinic 11 407 11 219 34 384 4 356
– – –
Total New infrastructure assets
689 656 57 169 144 151 171 649
2. Upgrades and additions
Gelukspan Hospital Design
25 Mafikeng
Relocation of kitcken,fencing & MDR
Unit 7 042 11 350 55 920 5 230
Mmabatho College of Nursing
Construction 26%-50%
2 Mafikeng
Upgrading of existing facility 225 227
62 735 - -
Mmabatho College of Nursing HT Planning
2 Mafikeng
Upgrading of existing facility 1 500 6 500
- -
89
Delareyville Hospital Bulk Pharmacy Design
9
Tswaing
Construction of pharmacy as
addition/extension to existing hospital 3 038 5 892 31 921 1 750
Delareyville Hospital Bulk Pharmacy HT Planning
Tswaing HT,OD & QA - 500 1 000 500
Deelpan Clinic Feasibility
1 Tswaing Upgrade of Clinic 870
1 576 4 683 7 855
Total Upgrades and additions
237 677 88 553 93 524 15 335
3. Refurbishment and rehabilitation
Itsoseng CHC. Water Supply Tender
6 Ditsobotla
Refurbish water supply network 799 2 500 - -
Lichtenburg Hospital Generator Planning
1 Ditsobtla (NW384) (NW384) Refurbishment
- 600 - -
Bophelong Provincial Hospital Generator Planning
1 Mafikeng (NW383) Refurbishment
- 1 200 - -
Medical Stores Refurbishment Planning
1 Mafikeng (NW383) Refurbishment
- 2 000 - -
MPH Refurbish HVAC Design
1 Mafikeng (NW383) Refurbishment
- 4 000 500 -
MPH Refurbishment Design
1 Mafikeng (NW383) Refurbish Hospital
- 5 500 3 500 -
Zeerust Hospital - Refurbish HVAC Design
1 Ramotshere
Moiloa Refurbishment - 2 500 - -
Ratlou CHC Generator Planning
1 Ratlou Refurbishment
- 1 200 - -
JST Hospital Ward 10
Practical Completion
17 Rustenburg Refurbishment 6 224 250 - -
Sannieshof Clinic Generator Planning
1 Sannieshof Refurbishment
- 600 - -
Total Refurbishment and rehabilitation
7 023 20 350 4 000 –
4. Maintenance and repairs
MPH - Maintenance Project
Construction 76% - 99%
5 Mafikeng Maintenance 9 067 1 850 – –
Gelukspan Hosp - Maintenance Project
Construction 76% - 99%
25 Mafikeng Maintenance 11 287 350 - -
Schweizer Reneke Hos - Maintenance Project Tender
7 Mamusa Maintenance 9 437
2 350 - -
90
Moses Kotane Hospital - Maintenance Project
Construction 76% - 99%
Numerous Moses Kotane Maintenance 12 680 650 – –
NMM Generators Term Contracts Phase 1
Construction 50%-75%
Numerous Ngaka Modiri Molema District All Health Facilities 4 643 380 – –
NMM Generators Term Contracts Phase 2 Planning
Numerous Ngaka Modiri Molema District All Health Facilities – 1 190 1 890 1 890
NMM Boiler Term Contract Phase 1
Construction 26%-50%
Numerous Ngaka Modiri Molema District All Health Facilities 1 611 1 840 – –
NMM Boiler Term Contract Phase 2 Planning
Numerous Ngaka Modiri Molema District All Health Facilities – 280 1 680 1 680
NMM HVAC Term Contracts Planning
Numerous Ngaka Modiri Molema District Maintenance – 1 260 1 320 1 800
Ngaka Modiri Molema Maintenance ES
Construction 50%-75%
Numerous Ngaka Modiri
Molema District Municipality All Health Facilities 22 865 8 313 7 752 8 224
Lehurutshe Hosp - Maintenance Project
Construction 76% - 99%
12 Ramotshere Moiloa Maintenance 12 502 350 – –
Lehurutshe Hosp Phase 2 - Maintenance Project Planning
5 Ramotshere Moiloa Maintenance - 5 100 31 150 3 350
Total Maintenance and repairs
84 092 23 913 43 792 16 944
Total Health Infrastructure 1 018 448 189 985 285 467 203 928
Table B.5: Community Safety and Transport Management
Project No.
Project name Project Status
Ward Number
Municipality / Region
Type of infrastructure
Expenditure to date from
previous years
MTEF 2019/20
MTEF Forward Estimates
MTEF 2020/21
MTEF 2021/22
1. New infrastructure assets
1 Lichtenburg Weighbridge Practical
completion 6 Ditsobotla Weighbridge 20 152 2 000 –
2 Abulution Facility at Mahikeng Airport Planning
Stage 2 Mahikeng
Abulution facilities
5 000
Total New infrastructure assets
20 152 7 000 -
-
2. Upgrades and additions
3 Renovation and construction of Itsoseng Driving license Tesing Centre
Indentification stage
Ditsobotla Testing Centre 5 605
91
Total Upgrades and additions
- 5 605 -
-
Table B.5: Public Works and Roads (Public Works Sector)
Project No.
Project name Project Status
Ward Number
Municipality / Region
Type of infrastructure
Expenditure to date from
previous years
MTEF 2019/20
MTEF Forward Estimates
MTEF 2020/21
MTEF 2021/22
1. New infrastructure assets
Replacement of High Voltage Switchgear at Garona All Mahikeng
Replace Government
Buildings Infrastructure
6 771 700 - –
Installation of transformer and generators at Garona All Mahikeng
Replace Government
Buildings Infrastructure
- 3 000 10 775 –
Wellness centre phase 2 (FA) 6 Mahikeng
Creation of Integrated Health and Wellness
Facilities (new building)
18 937 300 - –
New Brickmaking plant and construction Ditsobotla 14 Mahikeng
New brick making plant, also supplying
bricks to Itsoseng
internal roads
4 552 500 500 500
Total New infrastructure assets 281 572 4 500 11 275 500
2. Upgrades and additions
Garona Office space phase 3 6 Mahikeng Upgrading of
Legal and other offices
579 10 000 10 000 21 571
92
Old Parliament phase 3 (a) - Ablution Facilities 6 Mahikeng
Old Parliament Renovations
(Lifts, Electrical installation,
Airconditioning, rest rooms)
3 008 10 000 6 000 –
Guard House - MEC's houses 6,9,28 Mahikeng Construction of Guard House
– 1 000 – –
Old Parliament Security Upgrades Ph 1 6,9,28 Mahikeng Security upgrades
– 2 000 2 000 2 000
Garona Security Upgrades Ph. 1 6,9,28 Mahikeng Security upgrades
– 2 000 2 000 2 000
NMM Sub-district offices Extensions 6,9,28 Mahikeng Extension to
offices – 7 000 9 000 2 000
Perimeter wall at Zeerust Workshop 15 Zeerust Perimeter wall (VUKUPHILE )
– 2 500 – –
High Mast Light at Kameeldoring Road Depot 15 Zeerust High Mast
Light – 326 – –
Standby Gen at Kameeldoring Road Depot 15 Zeerust High Mast
Light – 100 – –
Upgrading of Molopo Workshop 8 Ditsobotla
local municipality
Upgrade roof struccture
– 3 200 – –
Construction of wall at deLaReyville Workshop 14 DeLaReyville Construction of
wall – 3 200 2 000 –
Total Upgrades and additions 8 103 41 326 31 000 27 571
3. Rehabilitation, renovations and refurbishments
Information Technology Infrastructure Programme Throughout NMM District
ALL Mahikeng Ward ALL
Renovations and repairs to data cabling in
offices
5 866 15 000 3 000 24 000
NWDC Refurbishment 6 Mahikeng Offices – 5 000 10 000 5 000
Lowe Residences Refurbishment 6 Mahikeng Houses – 1 000 5 000 4 000
Theresa House Refurbishment 6 Mahikeng Offices – 5 000 10 000 5 000
Rehabilitation of Head Office building (Roads and Transport)
6 Mahikeng
Repairs to bridge and
offices of new building
57 142 10 000 2 000 -
93
Total Rehabilitation, renovations and refurbishments 103 280 36 000 30 000 38 000
4. Maintenance and repairs
28 Presige Facilities Day to Day Maintenance NMM N/A
Ngaka Modiri Molema District
Municipality
Maintenance 3 053 27 000 28 890 30 912
29 Day to Day Maintenance of all government facilities in NMM
N/A
Ngaka Modiri Molema District
Municipality
Maintenance 21 547 8 800 10 000 10 000
30 Services and maintanace of electrical and Mechanical Equipment
N/A
Ngaka Modiri Molema District
Municipality
Services - 781 - –
31 Park City Town Houses 7 Mahikeng Renovations of 8 block of flats
- 1 400 - –
32 Bontle Flats 7
Ngaka Modiri Molema District
Municipality
Services - 2 219 - –
#REF! Geo science building 8
Ngaka Modiri Molema District
Municipality
Services - 2 100 - –
#REF! Blue and White flats 7
Ngaka Modiri Molema District
Municipality
Services - 2 170 - –
#REF! Lehurutshe Sub District Office 11 Ramotshera
Moilwa Services - 3 000 - –
Total Maintenance 43 976 47 470 38 890 40 912
94
Table B.5:Local Government and Human Settlement
Project No.
Project name Project Status
Ward Number
Municipality / Region
Type of infrastructure
Expenditure to date from
previous years
MTEF 2019/20
MTEF Forward Estimates
MTEF 2020/21
MTEF 2021/22
5. Infrastructure transfers – current
1 Ditsobotla - Blydeville Ext 1,2 & 3 (136 Subs) Construction Township Ditsobotla
LM
Incremental : 2.2E Integrated Residential
Development Programme: Phase 4:
Top Structure Construction Informal
Settlements
- 2 297 - -
2 Ditsobotla Local Municipality (2000) Procurement Various Ditsobotla
LM
Rural : 4.2 Rural Subsidy Communal
Land Rights 12 797 3 202 - -
3 Ditsobotla Boikhutso Ext 1 230 Tlhabangane Construction Township Ditsobotla
LM
Incremental : 2.2E Integrated Residential
Development Programme: Phase 4:
Top Structure Construction Informal
Settlements
5 931 1 914 - -
4 Ditsobotla, Verdwaal Village, 401, Sun Success Construction Various Ditsobotla
LM
Incremental : 2.2B Integrated Residential
Development Programme: Phase 1: Planning And Services Informal Settlements
7 306 1 500 - -
5 Ditsobotla Itsoseng 619, Sechoaro 124 Construction Township Ditsobotla
LM
Incremental : 2.2E Integrated Residential
Development Programme: Phase 4:
Top Structure Construction Informal
Settlements
3 987 2 679 - -
2016/17 Ditsobotla Blydeville Ext 4 Construction Township Ditsobotla
LM
Incremental : 2.2B Integrated Residential
Development Programme: Phase 1: Planning And Services Informal Settlements
1 000 9 197 9 197 9 197
95
2016/17 Ditsobotla Villages Procurement Various Ditsobotla
LM
Rural : 4.2 Rural Subsidy Communal
Land Rights 6 574 17 075 20 010 20 010
2016/17 Ditsobotla Coligny Irdp Phase 1 Construction Township Ditsobotla
LM
Incremental : 2.2B Integrated Residential
Development Programme: Phase 1: Planning And Services Informal Settlements
6 170 16 095 13 796 9 197
2018/19 Ditsobotla Blydeville Bulk Bulk Services Township Ditsobotla
LM Provincial Specific
Programmes 1 200 13 000 - 10 000
Ditsobotla - Coligny Bulk Bulk Services Various Ditsobotla
LM Provincial Specific
Programmes - 12 329 10 050 10 000
Coligny Sewer Reticulation Construction Various Ditsobotla
LM Water Reticulation
System - 5 000 - -
Itsoseng Water and Sanitation challenges Design Various Ditsobotla
LM Water And Sanitation - 3 000 - 1 660
Scotland Boreholes Retention Retention 16 Ditsobotla
LM Boreholes/WWTW 1 009 200
Mafikeng L M Mafikeng Disater Houses(130 Subs) Construction Mahikeng
LM
Rural : 4.2 Rural Subsidy Communal
Land Rights 56 985 1 266 - -
Mafikeng 200 Php Pledge Project Construction Mahikeng
LM
Incremental : 2.2E Integrated Residential
Development Programme: Phase 4:
Top Structure Construction Informal
Settlements
84 927 638 - -
Mafikeng Madibe Women`S Build 177 Procurement Mahikeng
LM
Rural : 4.2 Rural Subsidy Communal
Land Rights 4 600 8 608 - -
Mafikeng Madibe Women`S Build 73 Procurement Mahikeng
LM
Rural : 4.2 Rural Subsidy Communal
Land Rights 8 488 6 329 - -
Mafikeng Villages 500 Quthing Procurement Mahikeng
LM
Rural : 4.2 Rural Subsidy Communal
Land Rights 24 036 4 557 - -
Mahikeng,Rooigrond Informal Settlements, 500, Mosegedi Construction Mahikeng
LM
Incremental : 2.2E Integrated Residential
Development Programme: Phase 4:
Top Structure Construction Informal
Settlements
1 269 10 973 6 720 -
96
Mafikeng, Rooigrond Informal Settlement, 500, Tigane Developers Construction Mahikeng
LM
Incremental : 2.2E Integrated Residential
Development Programme: Phase 4:
Top Structure Construction Informal
Settlements
67 844 4 466 - -
Mafikeng, Mafikeng Ext 39, 25 Military Veterans Military Vets Mahikeng
LM
Incremental : 2.2E Integrated Residential
Development Programme: Phase 4:
Top Structure Construction Informal
Settlements
3 827 1 316 - -
Mahikeng Mahikeng Various Villages,250, Maidu Construction Mahikeng
LM
Rural : 4.2 Rural Subsidy Communal
Land Rights 15 636 5 641 - -
Mahikeng, Mahikeng Various Villages, 250 Mwelase Construction Mahikeng
LM
Rural : 4.2 Rural Subsidy Communal
Land Rights 4 831 8 228 - -
Mahikeng, Mahikeng Various Villages, Renanao, 250 Construction Mahikeng
LM
Rural : 4.2 Rural Subsidy Communal
Land Rights 62 382 12 026 - -
Mahikeng, Ext 39, Ikatiseng, 32 Construction Mahikeng
LM
Incremental : 2.2E Integrated Residential
Development Programme: Phase 4:
Top Structure Construction Informal
Settlements
59 119 255 - -
Mahikeng Ward 28 & Ext 38 Emergency 31 Units Construction Mahikeng
LM
Incremental : 2.2E Integrated Residential
Development Programme: Phase 4:
Top Structure Construction Informal
Settlements
42 462 638 - -
Mahikeng Ottoshoop, 321, Dilemopumo Construction Mahikeng
LM
Rural : 4.2 Rural Subsidy Communal
Land Rights 3 098 4 177 - -
Mafikeng Montshioa 87 Yonica Construction Mahikeng
LM
Incremental : 2.2E Integrated Residential
Development Programme: Phase 4:
Top Structure
- 6 379 - -
97
Construction Informal Settlements
Mahikeng, Masutlhe, Boletha,83 Construction Mahikeng
LM
Rural : 4.2 Rural Subsidy Communal
Land Rights 2 799 5 697 - -
2016/17 Ngaka Modiri Military Vets Military Vets Mahikeng
LM
Incremental : 2.2E Integrated Residential
Development Programme: Phase 4:
Top Structure Construction Informal
Settlements
6 152 995 - -
2016/17 Mafikeng Villages Procurement/Planning Mahikeng
LM
Rural : 4.2 Rural Subsidy Communal
Land Rights 5 106 37 015 - -
Mahikeng Military Vets 24 Units Construction Mahikeng
LM
Incremental : 2.2E Integrated Residential
Development Programme: Phase 4:
Top Structure Construction Informal
Settlements
9 332 2 256 188 -
2018/19 Mafikeng Kaalpan 29 Procurement Mahikeng
LM
Rural : 4.2 Rural Subsidy Communal
Land Rights - 3 834 - -
Mahikeng Mafikeng Villages Procurement Mahikeng
LM
Rural : 4.2 Rural Subsidy Communal
Land Rights - 17 342 13 340 26 679
Mahikeng Revitalization Programme retention/internal roads Construction 9,7 & 19 Mahikeng
LM Internal Roads 24 713 2 800 6 000 9 495
Rooigrond WWTW Construction 27 Mahikeng
LM Water Reticulation
System 49 729 10 000 - -
Rooigrond Water Augmentation Construction 27 Mahikeng
LM Boreholes/WWTW - 10 000
NMM Capacity Building Design various Ngaka Modiri
Molema DM Capacity Building 250 390 466 492
NMM Sewer Blockages Design various Ngaka Modiri
Molema DM Sewer Blockages - 2 000 - -
Ramotshere Moilwa Kruisrivier Women`S Build 100 0 Morongwa Construction Ramotshere Moiloa LM
Rural : 4.2 Rural Subsidy Communal
Land Rights 13 651 1 519 - -
98
Ramotshere Moilwa Groot Marico 600 Construction Ramotshere Moiloa LM
Incremental : 2.2E Integrated Residential
Development Programme: Phase 4:
Top Structure Construction Informal
Settlements
91 348 383 - -
Ramotshere Moilwa, Kruisrivier, 83,Boletha Procurement Ramotshere Moiloa LM
Rural : 4.2 Rural Subsidy Communal
Land Rights - 13 340 - -
Ramotshere Moilwa, Kruisrivier, 84, Seeletso Construction Ramotshere Moiloa LM
Rural : 4.2 Rural Subsidy Communal
Land Rights 25 258 1 519 - -
Ramotshere Moiloa - Moselapetlwa & Mogopa Construction Ramotshere Moiloa LM
Rural : 4.2 Rural Subsidy Communal
Land Rights 197 772 6 329 - -
Ramotshere Moilwa Welbedacht Feasibility Procurement Ramotshere Moiloa LM
Incremental : 2.2B Integrated Residential
Development Programme: Phase 1: Planning And Services Informal Settlements
64 211 11 036 18 038 18 038
Ramotshere LM, Lekgophung, 250, Koki Consulting Construction Ramotshere Moiloa LM
Rural : 4.2 Rural Subsidy Communal
Land Rights 6 797 3 798 - -
2016/17 Ramotshere Moiloa Gopane Procurement Ramotshere Moiloa LM
Rural : 4.2 Rural Subsidy Communal
Land Rights 4 668 5 603 - -
2016/17 Ramotshere Moiloa Lekubu Procurement Ramotshere Moiloa LM
Rural : 4.2 Rural Subsidy Communal
Land Rights 270 6 670 - -
2016/17 Ramotshere Moiloa Ramotshere Villages 300 Construction Ramotshere Moiloa LM
Rural : 4.2 Rural Subsidy Communal
Land Rights 1 300 2 658 - -
2016/17 Ramotshere Moiloa Ramotshere Villages 300 Construction Ramotshere Moiloa LM
Rural : 4.2 Rural Subsidy Communal
Land Rights 3 247 1 013 - -
2016/17 Ramotshere Moiloa Ramotshere Villages 300 Construction Ramotshere Moiloa LM
Rural : 4.2 Rural Subsidy Communal
Land Rights 2 475 1 519 - -
2016/17 Ramotshere Moiloa Ramotshere Villages 300 Construction Ramotshere Moiloa LM
Rural : 4.2 Rural Subsidy Communal
Land Rights 7 314 1 013 - -
2016/17 Ramotshere Moiloa Ramotshere Villages 300 Construction Ramotshere Moiloa LM
Rural : 4.2 Rural Subsidy Communal
Land Rights 3 812 2 785 - -
99
2016/17 Ramotshere Moiloa Ramotshere Villages 300 Construction Ramotshere Moiloa LM
Rural : 4.2 Rural Subsidy Communal
Land Rights 5 926 1 519 - -
2017/18 Ikageleng Planning Ramotshere Moiloa LM
Incremental : 2.2B Integrated Residential
Development Programme: Phase 1: Planning And Services Informal Settlements
1 730 1 500 - -
Ramotshere Moiloa Lehurutshe Military Vets 60 Military Vets Ramotshere Moiloa LM
Incremental : 2.2E Integrated Residential
Development Programme: Phase 4:
Top Structure Construction Informal
Settlements
10 194 3 760 940 -
Ramotshere Moiloa Mathlase Madume 200 Procurement Ramotshere Moiloa LM
Rural : 4.2 Rural Subsidy Communal
Land Rights 5 319 6 670 6 670 6 670
Ramotshere Moiloa Metsedi Village 180 Procurement/Planning Ramotshere Moiloa LM
Rural : 4.2 Rural Subsidy Communal
Land Rights - 1 200 6 670 6 670
Zeerust WWTW Retention Construction 9 Ramotshere Moiloa LM
Water Reticulation System
7 000 600 - -
Dinokana Water Challenges Construction Ramotshere Moiloa LM
Water Reticulation System
- 3 400 - -
Ratlou Local Mun Emergency Housing (284 Sub) Construction Ratlou LM Rural : 4.2 Rural
Subsidy Communal Land Rights
11 984 7 975 - -
Ratlou Kraaipan, Setlagole, Madibogo 200 Construction Ratlou LM Rural : 4.2 Rural
Subsidy Communal Land Rights
17 558 6 329 - -
2016/17 Ratlou Villages Construction Ratlou LM Rural : 4.2 Rural
Subsidy Communal Land Rights
304 3 038 - -
2016/17 Ratlou Villages Construction Ratlou LM Rural : 4.2 Rural
Subsidy Communal Land Rights
3 439 127 - -
2016/17 Ratlou Villages Construction Ratlou LM Rural : 4.2 Rural
Subsidy Communal Land Rights
11 145 5 064 - -
100
2016/17 Ratlou Villages Construction Ratlou LM Rural : 4.2 Rural
Subsidy Communal Land Rights
9 578 6 329 - -
2016/17 Ratlou Villages Construction Ratlou LM Rural : 4.2 Rural
Subsidy Communal Land Rights
325 3 335 - -
2016/17 Ratlou Villages Construction Ratlou LM Rural : 4.2 Rural
Subsidy Communal Land Rights
- 9 368 - -
Mabule Boreholes Retention Retention 6 Ratlou LM Boreholes/WWTW 1 962 300
Tswaing 1500 Aobakwe Construction Tswaing LM Rural : 4.2 Rural
Subsidy Communal Land Rights
129 730 1 519 - -
Tswaing, Delareyville Ext 7, 200 Construction Tswaing LM Incremental : 2.4
Informal Settlement Upgrading
13 100 3 828 - -
Tswaing, Delareyville Ext 7, 60 Construction Tswaing LM
Incremental : 2.2E Integrated Residential
Development Programme: Phase 4:
Top Structure Construction Informal
Settlements
6 767 3 828 - -
Tswaing, Delareyville Ext 8, 1000 Construction Tswaing LM
Incremental : 2.2E Integrated Residential
Development Programme: Phase 4:
Top Structure Construction Informal
Settlements
55 622 3 062 - -
2016/17 Tswaing Broedersput Procurement Tswaing LM Rural : 4.2 Rural
Subsidy Communal Land Rights
6 012 13 340 - -
2016/17 Tswaing Deelpan Construction Tswaing LM Rural : 4.2 Rural
Subsidy Communal Land Rights
3 037 1 899 - -
2016/17 Tswaing Doornlaagte Construction Tswaing LM Rural : 4.2 Rural
Subsidy Communal Land Rights
8 879 1 899 - -
2016/17 Tswaing Frisgewaagte Construction Tswaing LM Rural : 4.2 Rural
Subsidy Communal Land Rights
- 3 798 - -
101
2016/17 Tswaing Geysdorp Construction Tswaing LM Rural : 4.2 Rural
Subsidy Communal Land Rights
5 088 8 102 - -
2016/17 Tswaing Geysdorp Construction Tswaing LM Rural : 4.2 Rural
Subsidy Communal Land Rights
3 487 8 102 - -
2016/17 Tswaing Khunwana Construction Tswaing LM Rural : 4.2 Rural
Subsidy Communal Land Rights
4 994 4 557 - -
2016/17 Tswaing Letsopa Ext 1,2 Procurement Tswaing LM
Incremental : 2.2E Integrated Residential
Development Programme: Phase 4:
Top Structure Construction Informal
Settlements
7 301 12 759 - -
2016/17 Tswaing Middleton A,B,C Construction Tswaing LM Rural : 4.2 Rural
Subsidy Communal Land Rights
270 3 798 - -
2016/17 Tswaing Middleton A,B,C Construction Tswaing LM Rural : 4.2 Rural
Subsidy Communal Land Rights
- 2 532 - -
2016/17 Tswaing Middleton A,B,C Construction Tswaing LM Rural : 4.2 Rural
Subsidy Communal Land Rights
3 159 2 532 - -
2016/17 Tswaing Morena & Majeng Construction Tswaing LM Rural : 4.2 Rural
Subsidy Communal Land Rights
6 147 3 798 - -
2016/17 Tswaing Morena & Majeng Construction Tswaing LM Rural : 4.2 Rural
Subsidy Communal Land Rights
- 2 532 - -
2016/17 Tswaing Witpan Construction Tswaing LM Rural : 4.2 Rural
Subsidy Communal Land Rights
- 1 899 - -
2016/17 Tswaing Witpan Construction Tswaing LM Rural : 4.2 Rural
Subsidy Communal Land Rights
1 797 1 899 - -
Tswaing Sannieshof Ditsoswane Land Purchase Planning Tswaing LM
Incremental : 2.2B Integrated Residential
Development Programme: Phase 1: Planning And Services Informal Settlements
8 605 2 000 - -
Tswaing Delareyville Ext 9 700 Planning Tswaing LM
Incremental : 2.2B Integrated Residential
Development Programme: Phase 1:
2 018 1 500 13 796 18 394
102
Planning And Services Informal Settlements
Tswaing Sione 500 Procurement Tswaing LM Rural : 4.2 Rural
Subsidy Communal Land Rights
- 6 670 26 679 13 340
Tswaing Shaleng 500 Procurement Tswaing LM Rural : 4.2 Rural
Subsidy Communal Land Rights
- 6 670 26 679 13 340
Tswaing Mafufutso 1 & 2 1200 Procurement Tswaing LM Rural : 4.2 Rural
Subsidy Communal Land Rights
5 661 6 670 40 019 13 340
Tswaing Diretsane 800 Procurement Tswaing LM Rural : 4.2 Rural
Subsidy Communal Land Rights
1 631 6 670 26 679 13 340
Tswaing Maloka 1000 Procurement Tswaing LM Rural : 4.2 Rural
Subsidy Communal Land Rights
- 6 670 26 679 13 340
Tswaing Driekant Farm Land Purchase Land Purchase Tswaing LM Financial : 1.11A Land
Parcels Procured - 3 000 - -
Total Infrastructure transfers - current
1 365 451 500 546 272 616 213 202
Total: Local Government and Human Settlement Infrastructure
1 365 451 500 546 272 616 213 202
103
Table B.5: Public Works and Roads (Roads Sector)
Project No.
Project name Project Status
Ward Number
Municipality / Region Type of
infrastructure
Expenditure to date from
previous years
MTEF 2019/20
MTEF Forward Estimates
MTEF 2020/21
MTEF 2021/22
2. Upgrades and additions
PWRT 103/11 Upgrading from gravel to surface standard of Road D402 through villages of Manamolela to Deelpan to Kopela (23km)
Construction 1,4 Ngaka Modiri Molema
District Municipality Road 14 659 40 488 56 000 16 000
PWR 127/14 Upgrading from gravel to surface standard of Road D479 from Khunotsoana village to T Junction of N4 and Tweefontein (27 km)
Construction 14 Ngaka Modiri Molema Road 30 123 30 000 57 080 25 000
PWR 75/16 Upgrading of Road Z422 from intersection of Albert Luthuli Road through Lokaleng and Mogosane village to Tlapeng (30km)
Planning & Design
7 Ngaka Modiri Molema
District Municipality Road 9 448 31 000 25 000
Total Upgrades and additions
54 230 101 488 113 080 66 000
3. Rehabilitation, renovations and refurbishments
PWRT 89/13 Special Maintenance of Road P152/1 from N18 at Setlagole to P34/4 in Delareyville 58km
Construction 14,12,8,6-
9,7,4 Ngaka Modiri Molema
District Municipality Road 11 228 60 000 50 000 30 000
PWRT 95/13
Rehabilitation of Road D933 from Lichtenburg to Gelukspan and a portion of Road D2095 to Road P183/1 passing through Dudefield and Sephaku mines - approximately 40km
Construction 21,10,6,3 Ngaka Modiri Molema
District Municipality Road 14 754 50 000 50 000 40 000
PWRT 113/13 Special Maintenance of Road P117/1 from Ottosdal (P13/2) to Hartbeesfontein
Construction 1 Ngaka Modiri Molema
District Municipality Road 6 366 50 000 50 000 40 000
NWTR47/06B Rehabilitation of sections of Road P28/4 (Rooigrond) from Mafikeng to Lichtenburg Phase2
Construction 27 - 12 Ngaka Modiri Molema
District Municipality Road 179 023 100 000 40 000 70 000
104
Total Rehabilitation, renovations and refurbishments
211 371 260 000 190 000 180 000
Table B.5: Culture, Arts and Traditional Affairs
Project No.
Project name Project Status
Ward Number
Municipality / Region
Type of infrastructure
Expenditure to date from
previous years
MTEF 2019/20
MTEF Forward Estimates
MTEF 2020/21
MTEF 2021/22
1. New infrastructure assets
Libraries Services
1 Dinokana Tender Stage 10
Ngaka Modiri Molema District
Municipality
New and replacement
assets
2 179 6 000 11 105 9 273
Traditional Affairs
2
Traditonal Affairs Office (Bahurutshe Ba Ga Suping)
Planning 1 Ngaka Modiri
Molema District Municipality
New and replacement
assets
8 078 – –
Cultural Affairs
5 Onkgopotse Tiro Monument Planning 10
Ngaka Modiri Molema District
Municipality
New and replacement
assets
1 700 1 794 1 893
Total New Infrastructure
2 179 15 778 12 899 11 166
105
2. Upgrades and additions
Libraries Services
6 Mmabatho Library Costruction 51% -
75% 10
Ngaka Modiri Molema District
Municipality
Upgrading and additions
5 933 1 721 – –
7 Ngaka Modiri Molema District Library Costruction 26% -
50% 3
Ngaka Modiri Molema District
Municipality
Upgrading and additions
4 025 2 543 – –
Total Upgrades and Additions
9 958 4 264 – –
4. Maintenance and repairs
TRADITIONAL AFFAIRS
8 Lowe Building Construction 1% -
25% 2
Ngaka Modiri Molema District
Municipality
Maintenance and repairs
500 500 –
0 Traditional Office Barolong ba ga Mokgobi Project Initiation 2 Ngaka Modiri
Molema District Municipality
Maintenance and repairs
350 369 389
Libraries Services
10 Archives Building Construction 51% -
99% 2
Ngaka Modiri Molema District
Municipality
Maintenance and repairs
300 317 334
Management Services
11 Gaabomotho Building Costruction 1% -
25% 2
Ngaka Modiri Molema District
Municipality
Maintenance and repairs
300 300 317
Total Maintenance and repairs
1 450 1 486 1 040
Total: Culture, Arts And Traditional Affairs Infrastructure
12 137 21 492 14 385 12 206
106
Table B.5: Education And Sport Development
Project No.
Project name Project Status
Ward Number
Municipality / Region
Type of infrastructure
Expenditure to date from
previous years
MTEF 2019/20
MTEF Forward Estimates
MTEF 2020/21
MTEF 2021/22
1. New infrastructure assets
Coligny Special Planning 16 Ditsobotla Hostel 6 000 16 000 30 000 26 000
Lichtenburg High Construction 6 Ditsobotla Secondary
School 39 350 13 750
Tlhabologang Primary Construction 16 Ditsobotla Primary School 59 883 6 191
Areaganeng Primary Construction 28 Mahikeng Primary School 40 122 5 138
Goodwill Primary Planning 7 Mahikeng Primary School 100 3 000 15 000 27 109
Mosikare Secondary Construction 25 Mahikeng Replacement
school 98 569 2 695
Monnamere Primary Planning 11 Ramotshere Moiloa Replacement
school 1 395 4 000 30 000 30 000
Stinkhoutboom Primary Planning 14 Ramotshere Moiloa
Primary School 894 3 000 15 000 15 106
Kagiso Barolong Secondary Planning 4 Ratlou
Replacement school 4 800 13 000 30 000 22 252
Tsoseletso Primary Construction 4 Ratlou Primary School 42 529 1 475
Geysdorp Secondary Identified 8 Tswaing Hostel – 2 000 15 000 20 000
Kelebogile Primary Construction 5 Tswaing Primary School 66 949 3 900
107
Noto Secondary Construction 5 Tswaing Secondary
School 63 567 18 000
Ramokonyane Secondary Construction 5 Tswaing
Secondary School 63 515 4 996
Total New infrastructure assets 487 673 97 145 135 000 140 467
2. Upgrades and additions
Maokaneng Secondary Planning 4 Ditsobotla Sanitation – 5 238
Motswaiso Primary Planning 8 Ditsobotla Sanitation – 2 700
Regomoditswe Primary Planning 14 Ditsobotla Sanitation – 2 619
Tsholofelo Primary Construction 19 Ditsobotla Sanitation 727 2 183
Boitumelo Primary Construction 25 Mahikeng Sanitation 728 2 183
DP Kgotleng Planning 33 Mahikeng Additions – 7 000 2 000
Kagisano Primary Construction 25 Mahikeng Sanitation 724 2 173
Kopanelo High Construction 17 Mahikeng Sanitation 375 1 125
Makgabana Primary Construction 1 Mahikeng Fencing 2 657 279
Makgobi Primary Construction 2 Mahikeng Full service 1 413 345
Onkgopotse Tiro Construction 9 Mahikeng Hostels upgrade 9 271 12 000
Setumo High Construction 27 Mahikeng Additions 20 996 363
Banabakae Primary Planning 8 Ramotshere Moiloa Water – 450
Bosugakobo Primary Construction 9 Ramotshere Moiloa Rationalisation 20 257 6 632
Ikageleng High Planning 16 Ramotshere Moiloa Additions 3 000
Laerskool Nietverdient Planning 17 Ramotshere Moiloa
Hostels upgrade – 2 000 10 000 3 000
Letlhakane Primary Construction 3 Ramotshere Moiloa Additions 36 416 1 385
108
Lobatla Primary Construction 3 Ramotshere Moiloa Sanitation 765 2 296
Manogelo Primary Construction 7 Ramotshere Moiloa Sanitation 1 009 3 028
Mokgola Primary Construction 3 Ramotshere Moiloa Sanitation 772 2 319
Sakalengwe High Construction 19 Ramotshere Moiloa Sanitation 854 2 565
Sesamotho Primary Construction 19 Ramotshere Moiloa Sanitation 526 1 579
Batho-batho Primary Construction 10 Ratlou Additions 1 408 7 000 8 166
Chaena Primary Construction 11 Ratlou Sanitation 826 2 479
GS Phooi Secondary Planning 13 Ratlou Sanitation – 5 120
Kgosi Shope Secondary Planning 5 Ratlou Sanitation – 4 483
Magawana Moshoete Primary Construction 23 Ratlou Sanitation 705 2 116
Mosita Secondary Construction 4 Ratlou Sanitation 919 2 760
Onkabetse Thuto Secondary Construction 5 Ratlou Additions 36 163 166
Tshidilamolomo Primary Planning 1 Ratlou Water – 450
Bakolobeng Secondary Construction 5 Tswaing Sanitation 1 125 3 375
Boschpoort Primary Construction 14 Tswaing Grade R 2 149 546
Laerskool Delareyville Construction 9 Tswaing Full service 3 728 53
Moshoete Primary Planning 5 Tswaing Sanitation – 3 139 1 000
Naledi Primary Planning 11 Tswaing Water – 450
Reatlegile Primary Planning 5 Tswaing Water – 450
Serite Moshoete Primary Planning 7 Tswaing Sanitation – 2 454
144 513 98 503 21 166 3 000
109
Refurbishment and rehabilitation
Boitsanape Technical Construction 8 Mahikeng Refurbishment – 832
CN Lekalake Primary Planning 8 Mahikeng Repairs and renovation – 5 000 2 191
Dikakanyo Primary Construction 34 Mahikeng Renovations – 2 920
110
Table B.5: Social Development
MTEF
2020/21
MTEF
2021/22
2. Upgrades and additions
1Mahikeng Outpatient Centre (upgrade of forner SCC) Design 5 Mafikeng (NNM) Inpatient Treatment Centre
500
2Boikagong Children 's home Design 7 Mafikeng (NNM) Children's Home
– 2 000 4 500 5 000
Total Upgrades and additions – 2 500 4 500 5 000
3. Maintenance and repairs equeitable share
Safe House (Mafikeng) Design 7 Mafikeng (NNM) Safe House55 100 200 300
Boikagong Children 's home Design 7 Mafikeng (NNM) Children's Home– 700 300 300
Lehuretshe Sub Office Design 11 Ramotsere Moilwa /NNM Sub-Office 91 350 200 300
Zeerust Service Point Design 12 Ramotsere Moilwa /NNM Service Point55 300 200 400
Wandraag Sub-Office Design 3 Ditsobotla Sub-Office – 200 300 500
Tshidilamolomo Sub-Office Design 6 Ratlou Sub-Office – 300 200 200
Itsoseng Handy Craft Center Design 5 Ditsobotla Protective Workshop35 723 500 300 500
Mahikeng Outpatient Centre Design 8 Mafikeng (NNM) Outpatient Treatment Centre3 044 100 400 300
Tshidilamolomo ECD Design 3 RatlouEarly Childhood
Development Centre
– 200 400 300
Mabule ECD Design 1 RatlouEarly Childhood
Development Centre
– 200 400 300
Groot Marico CCC Design 17 Ramotshere Moiloa Community Care Center– 100 300 300
Total Maintenance and repairs equeitable share3 050 3 200 3 700
5. Maintenance and repairs Grant
Ntataise CrecheDesign 30
Ditsobotla Early Childhood
Development Centre
– 179 169 178
Boitshepo DCCDesign 29
Ditsobotla Early Childhood
Development Centre
– 173 169 178
Mmelegi Community CrecheDesign 22
Ditsobotla Early Childhood
Development Centre
– 171 169 178
Lore ELCDesign 4
Mahikeng Early Childhood
Development Centre
– 71 206 217
Kgotlanyame ELCDesign 1
Mahikeng Early Childhood
Development Centre
– 206 169 178
Mokgala ECDDesign 6
Ramotshere Moiloa Early Childhood
Development Centre
– 210 169 178
Mmamerafe ELCDesign 1
Ramotshere Moiloa Early Childhood
Development Centre
– 175 169 178
Bontlentane ELCDesign 2
Ramotshere Moiloa Early Childhood
Development Centre
– 171 169 178
Boitshwarelo ELCDesign 12
Ratlou Early Childhood
Development Centre
– 222 169 178
Gamosea ELCDesign 14
Ratlou Early Childhood
Development Centre
– 220 169 178
Atlegang CrecheDesign 4
Tswaing Early Childhood
Development Centre
– 192 169 178
1 990 1 896 1 997
Total Maintenance and repairs38 968 5 040 5 096 5 697
MTEF
Forward EstimatesProject
No.Type of infrastructure
MTEF
2019/20Project name
Project
StatusWard Number Municipality / Region
Expenditure to date
from previous years
111
NGAKA MODIRI MOLEMA DISTRICT MUNICIPALITY
Page | 113
ANNUAL BUDGET OF
NGAKA MODIRI MOLEMA DISTRICT
MUNICIPLALITY
2019/20 TO 2021/22
MEDIUM TERM REVENUE AND EXPENDITURE FRAMEWORK
Copies of this document can be viewed:
In the foyers of all municipal buildings
All public libraries within the municipality
At www. nmmdm.gov.za
Tribal Authorities
Higher Learning Institutions
Page | 114
LIST OF TABLES
Table 1: Consolidated Overview of the 2019/20 MTREF
Table 2: Summary of revenue classified by main revenue sources
Table 3: Operating Transfers and Grants Receipts
Table 4: New proposed municipal health service tariffs charges for 2019/20 MTREF
Table 5: Proposed water & sanitation for 2019/20 MTREF
Table 6: Proposed Truck service tariffs for 2019/20 MTREF
Table 7: Proposed Tender document tariffs for 2019/20 MTREF
Table 8: Summary of operating expenditure by standard classification item
Table 9: Repair and Maintenance per asset class
Table 10: 2019/20 Medium-term capital expenditure per vote
Table 11: Table A1 Budget Summary
Table 12: Table A2 Budgeted Financial Performance (revenue and expenditure by functional
classification)
Table 13: Table A3 Budgeted Financial Performance (revenue and expenditure by municipal
vote)
Table 14: Table A4 Budgeted Financial Performance (revenue and expenditure) Table 15: Table A5 Budgeted Capital Expenditure by vote, standard classification and funding source Table 16: Table A6 Budgeted Financial Position
Table 17: Table A7 Budgeted Cash Flows
Table 18: Table A8 Cash backed reserves/ accumulated surplus reconciliation
Table 19: Table A9 Asset Management
Table 20: Table A10 Basic service delivery measurement
Table 21: Time schedule of key deadlines for 2019/20 MTREF
Table 22: Schedule of 2019/20 draft budget and IDP review meetings for consultation
Table 23: MBRR Table SA4 – Reconciliation between the IDP strategic objectives and budgeted
revenue
Table 24: MBRR Table SA5 – Reconciliation between the IDP strategic objectives and operating
expenditure
Table 25: MBRR Table SA5 – Reconciliation between the IDP strategic objectives and capital
expenditure
Table 26: Supporting Table SA7 Measurement performance objective and indicators
Table 27: Macroeconomic performance and projections 2018-2021
Table 28: Sources of operating revenue over the MTREF
Table 29: Sources of capital revenue over the MTREF
Page | 115
Table 30: Table SA 18- Capital transfers and grants receipts
Table 31: MBRR Table A7- Budget cash flow statement
Table 32: MBRR Table A8- Cash backed reserves/accumulated surplus reconciliation
Table 33: Supporting Table SA10- Funding measurement
Table 34: MBRR Table SA19- Expenditure on grants and reconciliations of unspent funds
Table 35: MBRR Table SA20- Reconciliation between of transfers, grants receipts and unspent
funds
Table 36: MBRR SA21- Cash Transfers and grants made by the municipality
Table 37: MBRR SA21- Non-Cash Transfers and grants made by the municipality
Table 38: MBRR SA22- Summary of Councillor and staff benefits
Table 39: MBRR SA23- Salaries, allowance and benefits for Councillors/senior managers
Table 40: MBRR SA24- Summary of personnel numbers
Table 41: Supporting Table SA26 Budgeted monthly revenue and expenditure (municipal vote)
Table 42: Supporting Table SA27 Budgeted monthly revenue and expenditure (functional
classification)
Table 43: Supporting Table SA28 Budgeted monthly capital expenditure (municipal vote)
Table 44: Supporting Table SA29 Budgeted monthly capital expenditure (functional vote)
Table 45: Supporting Table SA30 Budgeted monthly cash flow
Table 46: Supporting Table SA34a Capital expenditure on new assets by asset class
Table 47: Supporting Table SA34b Capital expenditure on the renewal of existing asset by asset
class
Table 48: Supporting Table SA34c Repairs and Maintenance expenditure by asset class
Table 49: Supporting Table SA34d Depreciation by asset class
Table 50: Supporting Table SA 34e Capital expenditure on the upgrading of existing asset by
asset class
Table 51: Supporting Table SA35 Future financial implications of the capital budget Capital
expenditure on new assets by asset class
Page | 116
1. PART 1 – ANNUAL BUDGET
1.1 Purpose
The purpose of the report is to table draft 2019/20 Medium- Term Revenue and Expenditure
Forecast (MTREF) before Council in terms of Section 16 (2) of the Local Government: Municipal
Finance Management Act (Act 56 of 2003) for consideration and adoption.
1.2 Legislative background
In terms of Municipal Finance Management Act, No. 56 of 2003, Chapter 4, Section 23,
consultation on tabled budgets states that:
1) When the annual budget has been tabled, the municipal council must consider any
views of –
a) the local community; and
b) the council National Treasury, the relevant provincial treasury and any provincial
and national organs of state or municipalities which made submission on the
budget .
2) After considering all budget submissions, the council must give the mayor an
opportunity-
a) to respond to the submission ; and
b) if necessary, to revise the budget and table amendments for consideration by
the council.
3) The National Treasury may issue guidelines on the manner in which municipal councils
should process their annual budgets, including guidelines on the formation of a
committee of the council to consider the budget and to hold public hearings.
4) No guidelines issued in terms of subsection (3) are binding on a municipal council unless
adopted by the council.
Page | 117
1.3 Mayoral Report
For draft budget, the mayor must also provide the following:
a) a summary of the medium-term service delivery objectives and associated medium-term
financial implications contained in the annual budget;
b) a summary of the linkages between the annual budget , the integrated Development
Plan and the political priorities at national, provincial, district and local levels;
c) a summary of infrastructure development objectives;
d) a summary of material amendments made to the annual budget after the consultation
processes; and
e) any other information considered relevant by the mayor.
1.3.1 A summary of the medium-term service delivery objectives and associated
medium-term financial implications contained in the annual budget
In his State of the National Address (SoNA) to Parliament on 7 February 2019, President Cyril
Ramaphosa said: “We must spend this year, 25th anniversary of our freedom, asking ourselves
whether we have built a society in which all South Africans equally and without exception enjoy
their inalienable rights to life, dignity and liberty”. This statement by the President reminds us
that Bill of Rights is a cornerstone of democracy in South Africa. Therefore, as a third sphere of
government, our role is to change livelihood of our people, through in which local communities
are able to access basic services such as decent sanitation, clean water and proper roads. By
so doing, it means we will be affirming the democratic values of human dignity, equality and
freedom of our people. Subsequent to that, Section 152 (1) provides that the local government
must –
a) provide democratic and accountable government for local communities;
b) ensure the provision of services to communities in a sustainable manner;
c) to promote social and economic development;
d) promote a safe and healthy environment;
e) encourage the involvement of communities and community organisations in the matters
of local government; and
f) strive, within its financial and administrative capacity, to achieve the objects set out in
subsection (1) of this act.
Page | 118
However, Minister of Finance, Tito Titus Mboweni said: “We are at a crossroads, and we could
go either to heaven, or the other way”. In the past 11 years, the economy of South Africa has
gone through its deepest recession. Recently, with technical recession, South Africa was faced
with overwhelming challenges which includes among others, extreme poverty, job losses, the
decline in rand, and sky rocking interest rates which had negative impact on fuel and food
prices. Thus, this story tells us that, we are far from meeting out our developmental goals as
the third sphere of government. On other hand, signals are that real GDP (gross domestic
product) growths in 2019 will rise to 1.5 %, and then strengthen moderately to 2.1 % in 2021.
This means that the economic recovery in South Africa is still fragile and many commentators
caution that current positive economic trends may be short-lived and that the negative economy
may yet experience a second recessionary wave in the third and fourth quarter.
Given the above synopsis, Ngaka Modiri Molema District Municipality was in no way immune to
the harsh economic realities associated with the recession. Undoubtedly, this economic
downturn affected the pace at which the district is able to address its service delivery backlogs,
specifically with water and sanitation projects. More worrying, the current Eskom power cut
crisis also affects the water supply to our local residents (especially those of rural communities);
and causes a delay for district to expedite the implementation of its own strategic infrastructure
projects.
In pursuit of the above challenges, the Municipality will tighten its spending belt in 2019/20
budget year by eliminating “nice-to-have” items and reprioritize core services and approve
reasonable and affordable expenditures. For 2019/20 budget year, the municipality has set
aside R 1, 071, 198 billion to achieve its medium-term service delivery objectives, and this
includes among others:
Social and economic development R 24,988 million
Provision of services to local communities R 604 million
To promote safe and healthy environment R 171,936 million
To encourage the involvement of communities and community
Organisations in the matters of the district R 33,972 million
Sound financial management and administrative capacity R 360,164 million
Page | 119
1.3.2 A summary of the linkages between the annual budget, the integrated
Development Plan and the political priorities at national, provincial, district and local
levels
In line with Section 21(1) (b) of the Municipal Finance Management Act (MFMA) (56 of 2003) a
time schedule outlining key deadlines for the preparation, tabling and approval of the annual
budget, as well as the annual review of the IDP and budget related policies was approved by
Council before end August 2018 (or 10 months before the start of the budget year – 2019/20
to 2021/22). The central role played by our local’s, communities, Ward Committees, Ward
Councillors, business formations and the NGOs is what is so vital in giving life to the IDP. Both
political and administrative leadership undertook detailed public participation processes during
the period February/March specifically assessing the needs of the communities which must
inform the budget processes going forward.
I must further state that the budget tabled today before Council is for it to be NOTED in line
with Chapter 4 of the MFMA for further consultations with all the relevant or critical key
stakeholders including but not limited to the (i) communities, (ii) business sector and other
formations and (iii) National / Provincial Treasuries. The budget being tabled to Council today
has undergone a complete revamp in order to ensure that spending of the ratepayer’s money
is closely monitored and there shall be no spending on the “nice-to-have” but rather on priority
projects. As mandated by National Treasury spending on items such as “discretionary accounts”
are to be the thing of the past and priority must be given to service delivery. I must emphasis
that the budget presented to Council today for noting is in line with the Municipal Standard
Chart of Accounts (mSCOA), and as we are aware the mSCOA Regulations do not promote
budgeting for any incidental expenditure that is not detailed in order to promote good financial
management.
Council must note that this draft IDP and budget documents are to be subjected to the scrutiny
of National Treasury, undergo Public Participation in line with Chapter 4 of the Municipal Systems
Act (MSA) (32 of 2000), with the intention of them coming back to Council on or before end
May 2019 for final approval by Council. It is to be understood that by the time both documents
tabled to Council for approval there may be other amendments to the documents on the basis
of input received during public participation processes.
Page | 120
The work undertaken by all role-players in preparing both documents for tabling to Council is
appreciated from the respective MMC’s, Municipal Manager, Senior Managers and all leading
role-players. It is to be understood that the budgeting process is not a simple task that can be
undertaken with much ease, as there are many financial demands against the limited available
funds.
I am now expecting both political and administrative leadership to work even harder to
undertake all the necessary processes that include public participation processes on the tabled
budget leading up to the final approval of both documents. Speaking of the linkages between
the annual budget, the integrated Development Plan and the political priorities at national,
provincial, district and local levels, eight years have passed since the National Development
Plan’s (NDP) launch, yet the majority of our local communities still seem unaware of what it
contains. As contained in the budget, the district will grow the economy to generate jobs, reduce
dependency and reduce poverty. To do this, we have set aside R 6,034 million to facilitate social
and economic development for our local communities, especially the rural communities.
With regard to infrastructure, “We have poorly-located and inadequate infrastructure that limits
social inclusion and growth. Local communities in rural areas struggle to access water,
electricity, healthcare and everything that is easily accessible in urban areas. This is also
influenced by income levels. In general, poor people don’t have access to infrastructure, and
the rich do.” For 2019/20 budget year, an amount of R 115 million has been budgeted for
repairs and maintenance of water and sanitation projects throughout the district.
The following are the main biggest projects that will be funded by our equitable shares, namely:
Ground water management (drilling and equipping of boreholes) R 10 million
Operation and maintenance of waste water treatment plants R 60 million
Mechanical and electrical repairs of boreholes R 28,5
million
Water quality management R 8 million
Bulk water purchase R 18 million
Supply of water through water tankering R 9 million
Sewer suctions R 3 million
Transfers to local’s R 20 million
Personal Protective Equipment R 10 million
Over the last decade, the performance of the public service has been uneven and some people
may go to the extent of saying that it’s atrocious. The NDP suggests we must have a
Page | 121
professionalised public service that understands that it exists to serve the population and to
support the private sector, not for its own interests. To show seriousness, the district has
budgeted R 1 million for 2019/20, R 1,050 million and R 1,102 million for outer years which
focus on training and capacitating municipal staff.
1.3.3 A summary of infrastructure development objectives
For 2019/20 MTREF, an amount of R 306, 210 million has been budgeted for water and
sanitation infrastructure development project, which is funded by Municipal Infrastructure Grant
and include capital projects funded from equitable shares and internally generated funds. The
following is the breakdown of budget allocations per project, per district.
Water Projects
- Ditsobotla Local Municipality - R 67,577 million
- Mahikeng Local Municipality - R 15,696 million
- Ramotshere-Moiloa Local Municipality - R 24 million
- Ratlou Local Municipality - R 31,909 million
- Tswaing Local Municipality - R 21 million
Sanitation Projects
- Ditsobotla Local Municipality - R 12,350 million
- Mahikeng Local Municipality - R 20 million
- Ramotshere-Moiloa Local Municipality - R 50 million
- Tswaing Local Municipality - R 50 million
In addition, it is important to note the status of the major projects that have future budgetary
implications.
1. Zeerust Waste Water Treatment Work
This project is a multi-year project which started in November 2017 and it is anticipated
to be completed in July 2020. In addition, the cost of this project is R 167 million, which
includes civil, mechanical, and electrical work and professional services. This is a
strategic project, which at its completion will decrease pollution to Karee Dam.
Page | 122
2. Ottosdal Bulk Water Supply
This is one of the multi-year projects that also started in November 2017 and it is
projected to be completed in March 2020. This project will alleviate water problem in
the surrounding area of Ottosdal. In addition, a recent approval of R 5 million by the
Department of Water and Sanitation will also help on storage of water.
3. Ngaka Modiri Molema Rural Sanitation
This is also a multi-year project that covers large portion of Ngaka Modiri Molema District
Municipality and most of the villages in the district have already benefited on this project.
For capital expenditure to be funded from equitable shares and internally generated funds
includes, but not limited to:
– Non-cash transfers to local municipalities R 5 million
– Procurement of honey sucker and water tankers R 3 million
– Procurement of fire & rescue engines R 10 million
– Completion of new office building R 15 million
– Renovation of existing office building R 1,5 million
– Office furniture R 4,6 million
– Computer software R 4,2 million
– Computer equipment (laptops) R 1,7 million
– Disaster relief material R 1,3 million
– Machinery R 500
thousand
– Equipment for drilling of boreholes R 1,5 million
1.4 Resolutions
1. The Council of Ngaka Modiri Molema District Municipality, acting in terms of section 24 of
the Municipal Finance Management Act, (Act 56 of 2003) notes the following:
1.1.1 The annual budget of the municipality for the financial year 2019/20 and the multi-
year and single-year capital appropriations as set out in the following tables:
Page | 123
1.1.2 Budgeted Financial Performance (revenue and expenditure by standard
classification);
1.1.3 Budgeted Financial Performance (revenue and expenditure by municipal vote);
1.1.4 Budgeted Financial Performance (revenue by source and expenditure by type);
1.1.5 Multi-year and single-year capital appropriations by municipal vote and standard
classification and associated funding by source;
1.2. The financial position, cash flow budget, cash-backed reserve/accumulated surplus,
asset management and basic service delivery targets are approved as set out in the following
tables:
1.2.1. Budgeted Financial Position;
1.2.2. Budgeted Cash Flows;
1.2.3. Cash backed reserves and accumulated surplus reconciliation;
1.2.4. Asset management; and
1.2.5. Basic service delivery measurement.
2. The Council of Ngaka Modiri Molema District Municipality, acting in terms of section 75A of
the Local Government: Municipal Systems Act (Act 32 of 2000) notes the following tariffs for
public consultation:
2.1.1 The tariffs for service trucks;
2.1.2 The tariffs for the water services;
2.1.3 The tariffs for sanitation services;
2.1.4 The tariffs for tender documents; and
2.1.5 The tariffs for municipal health services.
1.5 Executive Summary
The executive summary must cover at least the following critical points:
a) the effect, including the financial and service delivery implications, of the annual budget,
making reference to the annual budget tables, charts and explanations, and include a
summary of service delivery, financial, rate and tariff implication for at least the budget
year and following two years;
b) past performance and in particular the impact on the budget of the previous years
audited results and annual report, and include a summary of service delivery, rate and
tariffs outcomes for at least previous year and the expected for the current year;
c) the consolidated financial position and summary medium term revenue and expenditure
strategy;
Page | 124
d) the municipalities priorities and linkages to the IDP;
e) Key amendments to the IDP;
f) alignment with and achievement of national, provincial and district priorities;
g) key amendments to budget related policies;
h) key demographic, economic and other assumptions; and progress of basic services and
financial implications for the medium framework and long term sustainability;
i) progress with the provision of basic services and financial implications for medium term
revenue and expenditure framework and long term sustainability.
First of all, the importance of effective municipal financial planning and management remains
critical when it comes to budgeting, safeguarding, monitoring and auditing. For 2019/20
financial year, the municipality has ensured that annual budget is funded from realistically
anticipated revenue and balancing this with the planned expenditure, by preparing detailed
plans and forecast. On the other hand, safeguarding of municipal assets was prioritised in order
to prevent against misuse, damage, loss or theft. As it stands, the process of recruitment of a
Manager Assets is underway, we remain resolute that the implementation of GRAP 17 will be
realised and municipality will be able to deal away with some queries raised by Auditor General
over the last past six to seven years. Monitoring actual income and expenditure and comparing
this to the budget, through regular financial reporting and corrective action will remain standing
agenda item for management. This process will strengthen accountability and ensure prudent
financial management within the municipality.
Lastly, but not list, maintaining positive cash flow and reporting of credible and reliable financial
results to all stakeholders will also be given thoughtful attention. Subsequent, the Municipality
acknowledges the intervention by the Provincial Executive Committee in responding to Financial
Management challenges by instituting Section 137 of the Municipal Finance Management Act 56
of 2003 (MFMA) in seeking for solutions to address these challenges. Another point worth to be
mentioned is that, in 2019/20 financial year the municipality will attempt to build reserves while
providing improved basic services. Indeed, our budget appears to be unfunded. This is due to
depreciation and asset impairment which is not cash backed by any reserves and accumulated
surplus.
Furthermore, good financial management goes hand-in-hand with strong ethical leadership that
establishes a culture of honesty, ethical business practices and good governance. Leadership
that exercise oversight responsibility; ensure effective human resource practices; implement
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appropriate policies and procedures; ensure proper record keeping of all transaction; maintains
effective controls over daily and monthly processing and reconciling of transactions and design
and implement formal controls to mitigate information technology risks; ensure that risks are
periodically identified, assessed and effectively mitigated and lastly, maintain an adequately
resourced and functioning internal audit unit and audit committee that performs its legislated
duties and promote accountability and service delivery. In that view, all matters reported above
will be receiving timeous management attention in the 2019/20 budget year.
The Municipality has addressed some of the issues such as lack of a dedicated risk management
unit as raised by Auditor General. The process of recruitment of a Chief Risk Officer is underway,
we remain resolute to implement programmes as approved and directed by Council in a
holistically, integrated planning through mSCOA to achieve the objectives of the NDP 2030 in
bettering the lives of the people, therefore this budget has to be a people oriented budget.
For 2019/20 draft budget, the district’s business and service delivery priorities were reviewed
as part of this year’s planning and budget process. Where appropriate, funds were transferred
from low- to high-priority programmes so as to maintain sound financial stewardship. A critical
review was also undertaken of expenditures on noncore and ‘nice to have’ items. This has
resulted in savings to the municipality of nearly R 60, 561 million which can either be used
for service delivery projects or to generate additional revenue through investment. Key areas
where savings were realized were on telephone, printing, catering, hiring of venues, audio
visuals including PA systems. Moreover, the district has embarked on implementing a range of
revenue enhancement strategies by introducing new municipal health tariffs that aim to boost
our own internally generated revenues and most importantly, to ensure compliance with goods
and services offered by private businesses.
National Treasury’s MFMA Budget Circulars were used to guide the compilation of the 2019/20
MTREF. However, the following challenges were experienced during the compilation of the
2019/20 MTREF which can be summarised as follows:
Budgeting for surplus;
The ongoing difficulties in the national and local economy;
Aging and poorly maintained water and sanitation infrastructure;
The need to reprioritise projects and expenditure within the existing resource envelope
given the cash flow realities and competing demands;
The increased cost of water materials and bulk purchases; and
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An upward pressure on repairs and maintenance of water and sanitation infrastructure
due to vandalism;
Wage increases for municipal staff that continue to exceed consumer inflation, as well
as the need to fill critical vacancies; and
Water demands which exceed the supply due to drought.
The following budget principles and guidelines directly informed the compilation of the 2019/20
MTREF:
The 2018/19 Adjustments budget priorities and targets and mid-year budget review
were used as a baseline for the for the 2019/20 draft budget;
Intermediate service level standards were used to inform the measurable objectives,
targets and backlog eradication goals;
That tariffs increase should be affordable and should generally not exceed inflation as
measured by the CPI, except where there are price increase services that are beyond
control of the municipality, for instance the cost of water materials. 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;
An upper limit of R 51,7 million was set for the following items and allocations to these
items had to be supported by a list and/or motivation setting out the intention and cost
of the expenditure which was used to prioritise expenditures:
- Special Projects;
- Consultant Fees;
- Furniture and office equipment;
- Special Events;
- Refreshments and entertainment;
- Subsistence, Travelling & Conference fees
In view of the aforementioned, the following table is a consolidated overview of the proposed
2019/20 Medium-term Revenue and Expenditure Framework:
Table 1: Consolidated Overview of the 2019/20 MTREF
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R thousands Adjusted Budget
Budget Year 2019/20
Budget Year +1 2020/21
Budget Year +2 2021/22
Total Operating Revenue
720,241
775,974
855,083
937,363
Total Operating Expenditure 780,347 847,020 895,509 969,642
Surplus/(Deficit) (60,106) (71,046) (40,425) (32,280)
Total Capital expenditure 388,121 347,874 320,684 339,766
Total operating revenue has grown by 7.7 % or R 55,733 million for the 2019/20 financial year
when compared to the 2018/19 Adjustments Budget. For the two outer years, operating
revenue will increase by 10 % and 9.6 % respectively, equating to a total revenue growth of R
217,122 million over the MTREF when compared to the 2018/19 financial year.
Total operating expenditure for the 2019/20 financial year has been appropriated at R 847,020
million and translates into a budgeted deficit of R 71, 046 million. When compared to the
2018/19 Adjustments Budget, operational expenditure has grown by 8.5% in the 2019/20
budget and increase by 5.7% and 8.2% for each of the respective outer years of the MTREF.
The operating deficit for the two outer years steadily decreases to R 40, 425 million and then
stabilise at R 32,280 million.
The capital budget of R 347,674 million for 2019/20 is 10.3 percent less when compared to the
2018/19 Adjustment Budget. The reduction is due to once off grant of R 157 million that was
allocated to the municipality in the current financial year by the Department of Water and
Sanitation. The capital programme decreases to R 320, 684 million in the 2020/21 financial year
and then evens out in 2021/22 to R 339, 766 million. A substantial portion of the capital budget
will be funded from Municipal Infrastructure Grant over MTREF with anticipated revenue of
R 292,534 million in each of the financial years of the MTREF. The balance will be funded from
internally generated funds. Consequently, the capital budget remains relatively flat over the
medium-term.
1.5.1 Operating Revenue Framework
For Ngaka Modiri Molema District 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 every
municipality. The reality is that we are faced with service delivery backlogs, extreme poverty
and high unemployment rate. The expenditure required to address these challenges will
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inevitably always exceed available funding; hence difficult choices have to be made in relation
to tariff increases and balancing expenditures against realistically anticipated revenues. For
2019/20 financial year, service charges from water & sanitation amount to R 557 thousand
which is 0.07% of our total operating revenue budget.
The municipality’s revenue strategy is built around the following key components:
National Treasury’s guidelines and macroeconomic policy;
Achievement of full cost recovery of specific service charges especially in relation to
water tokens and service trucks.
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 from service rendered to local
businesses by municipal health service department;
Rendering of free basic services; and
Tariff policies of the district.
The following table is a summary of the 2019/20 MTREF (classified by main revenue source)
Table 2: Summary of revenue classified by main revenue source
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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. Revenue
generated from service charges forms 0.07% of the revenue basket for the district. Water
service charge revenues comprise more than two thirds of the total revenue mix. In the 2019/20
financial year, revenue from services charges totals to R 557 thousand. This increases to R 668
thousand and R 868 thousand for the outer years respectively. For 2019/20 MTREF, other
revenue is forecasted to R 2, 081 million, R 2, 310 million for 2020/21 and R 2, 546 million for
outer years.
Operating grants and transfers receipts totals to R 766,370 million in the 2019/20 financial year
and steadily increases to R 907,269 million by 2021/22 financial year. Note that the year-on-
year growth for the 2019/20 financial year is 9.5% and then flattens out to 8.6% and 8.9%
percent in the two outer years.
The following table gives a breakdown of the various operating grants and subsidies allocated
to the municipality over the medium term:
Table 3: Operating Transfers and Grants Receipts
Description Ref 2015/16 2016/17 2017/18
R thousand 1Audited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Pre-audit
outcome
Budget Year
2019/20
Budget Year
+1 2020/21
Budget Year
+2 2021/22
Revenue By Source
Property rates 2 – – – – – – – – – –
Serv ice charges - electricity rev enue 2 – – – – – – – – – –
Serv ice charges - w ater rev enue 2 – 40 602 478 478 478 – 450 550 750
Serv ice charges - sanitation rev enue 2 – 118 54 56 56 56 – 107 118 118
Serv ice charges - refuse rev enue 2 – – – – – – – – – –
Rental of facilities and equipment 186 209 215 216 216 216 – 218 221 223
Interest earned - ex ternal inv estments 3,024 4,784 11,234 – 18,521 18,521 – – – –
Interest earned - outstanding debtors – – – – – – – – –
Div idends receiv ed – – – – – – – – –
Fines, penalties and forfeits – – – – – – – – –
Licences and permits – – – – – – – – –
Agency serv ices – – – – – – – – –
Transfers and subsidies 513,723 554,981 626,994 699,511 699,511 699,511 – 773,335 852,106 933,949
Other rev enue 2 1,698 1,180 1,444 1,459 1,459 1,459 – 1,863 2,089 2,323
Gains on disposal of PPE
Total Revenue (excluding capital transfers
and contributions)
518,630 561,314 640,543 701,720 720,241 720,241 – 775,974 855,083 937,363
2019/20 Medium Term Revenue &
Expenditure FrameworkCurrent Year 2018/19
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1.5.1.1 Tariffs Setting
Tariff-setting is a pivotal and strategic part of the compilation of any budget. When tariffs and
other charges were revised, local economic conditions, consumer price index, input costs and
the affordability of services were taken into account to ensure the financial sustainability of the
Municipality. On the other hand, National Treasury through MFMA budget Circular 93 & 94
encouraged municipalities to keep increases in rates, tariffs and other charges as low as
possible. Municipalities must justify in their budget documentation all increases in excess of the
6 per cent upper boundary of the South African Reserve Bank’s (SARB) inflation target.
Excessive increases are likely to be counterproductive, resulting in higher levels of non-payment.
For 2019/20 budget year, all proposed tariffs were increased by 6 percent except the new
municipal health service tariffs and yard connection tariffs which will be now on quotation basis.
The reason for quotation based is to avoid blanket approach to all households despite the
differences in radius for inside dwelling connections. Although it is our constitutional mandate
to provide water services to our local communities, the obligation to render such services is
extremely costly to the municipality, and not cost-reflective. So, discounting the impact of these
price increases in lower consumer tariffs will erode the district’s future financial position and its
financial viability.
It must also be appreciated that the consumer price index (CPI) is not a good measure of the
cost increases of goods and services relevant to municipalities. The basket of goods and
Description Ref 2015/16 2016/17 2017/18
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Budget Year
2019/20
Budget Year
+1 2020/21
Budget Year
+2 2021/22
RECEIPTS: 1, 2
Operating Transfers and Grants
National Government: 513,653 – – 699,511 699,511 699,511 766,370 832,560 907,269
Local Gov ernment Equitable Share 510,260 696,369 696,369 696,369 762,805 829,798 904,243
Finance Management 1,325 1,865 1,865 1,865 2,330 2,762 3,026
Municipal Sy stems Improv ement 524 – – – – – –
Water Serv ices Operating Subsidy – – – – – – –
EPWP Incentiv e 1,545 1,277 1,277 1,277 1,235 – –
– – – – – – –
SETA – – – – – – –
Provincial Government: – – – – – – – – –
SETA
District Municipality: – – – – – – – – –
[insert description]
Other grant providers: – – – – – – – – –
[insert description]
Total Operating Transfers and Grants 5 513,653 – – 699,511 699,511 699,511 766,370 832,560 907,269
Current Year 2018/192019/20 Medium Term Revenue &
Expenditure Framework
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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 water material, petrol and diesel 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 tariff setting framework, the Municipality has undertaken the tariff setting process
relating to service charges as follows:
1.5.1.2 Proposed Municipal Health Tariffs
Table 4: New proposed Municipal health services tariffs for 2019/20 MTREF Description of Service
Proposed tariff (from July 2019)
Municipal Health Certificates
New Application
Review
Renewal
R500.00 R250.00 R250.00
Certificate of Acceptability
New Application
Review
Renewal
R500.00 R250.00 R250.00
Certificate of Competence
New Application
Review
Renewal
R500.00 R250.00 R250.00
Issuing of condemnation certificate on request
R600.00
Re- Inspection to lift prohibition
R1 000.00
Training & Inspection of Caterer’s kitchens
R300.00
Exhumation & Re-burial of mortal remains
R300.00
Monitoring & Assessment of facilities during events of public gatherings
R500.00
As indicated above, municipal health service tariffs/ rates cover the cost of the provision of
general services which aims to promote safe and healthy environment. Determining the effective
municipal health service tariff is therefore an integral part of the municipality’s budgeting
process.
Below, is the rationale behind furture additional municipal health services to be considered for
outer years:
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Business Licensing - Local Municipalities under the jurisdiction of NMMDM are
licensing authority in terms of the North West Business Act. All these municipalities do
not exercise the authority as per the Act due to capacity as this function was done by
Environmental Health Practitioners who are now the employees of the District. Licensing
of business under the Act at the Local Municipality jurisdiction can be executed by the
district on behalf of the Local municipality once Service Level Agreement (SLA’s) between
the municipalities is signed, and the revenue collected is channelled towards staff
establishment for municipal health services.
Atmospheric Emission Licensing – The district municipality in terms of the Air Quality
Management Act, 39 of 2004, is an Atmospheric Emission Licensing (AEL) Authority that
is responsible to issue all Atmospheric Emission Licenses in the district. The district
municipality due to capacity does not issue the licenses and the provincial department
of READ issue the licenses and pocket all licenses fees collected. Once the MHS Unit is
adequately staffed, resourced and capacitated to issue the licenses this will be another
stream of revenue for the municipality.
Regional Landfill Site - In terms of section 84 (1) of the Municipal Structures Act,
when any landfill site serve two Local municipalities under the district municipality, such
landfill site becomes the responsibility of the district municipality. Currently the district
municipality owns no landfill site as all landfill sites are owned by Local municipalities. If
the district municipality explores the possibility of establishing the regional landfill site
then the district will tap on the revenue collected by those municipalities who will use
the regional landfill site as they will be paying the district for their waste disposal.
Table 5: Proposed Water & Sanitation tariffs for 2019/20 MTREF
Description
Current Tariff (1 July 2018) 2019/2020 2020/2021 2021/2022
20/kl 21/kl 22.5/kl 24/kl
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Water Tariff
Water Tanker 10kl 16/kl 17/kl 18/kl 19/kl
Water Tanker 14kl 18/kl 19/kl 20/kl 21.5/kl
Water Tanker 16kl 20/kl 21/kl 22.5/kl 24/kl
Water Tanker 18kl 22/kl 23/kl 25/kl 26/kl
Water Tanker 20kl 24/kl 25.5/kl 27/kl 228.5/kl
Water Token fee 150.00 159.00 168.50 179.00
Vacuum Tanker Suction of Sanitation 10kl 418.00 443.00 470.00 498.00
Vacuum Tanker Suction of Sanitation 14kl new 600.00 636.00 674.00
Yard Connection Fee 4,226.00 per meter per meter per meter
Table 6: Proposed Truck service tariffs for 2019/20 MTREF
Description
Current Tariff (1 July 2018) 2019/2020 2020/2021 2021/2022
Maintenance of motor grader 13 ton 450/hr 477/hr 506/hr 536/hr
Construction motor grader 15 ton 550/hr 583/hr 618/hr 655/hr
Track loader backhoe 310/hr 329/hr 348/hr 369/hr
6m3 Tipper Truck, if the kilometres exceeds 10km reR15 will be charged per km 360/hr 382/hr 405/hr 429/hr
2.7 m3 Front end Loader 450/hr 477/hr 506/hr 536/hr
Tractor 450/hr 477/hr 506/hr 536/hr
Pedestrial Roller 180/hr 191/hr 202/hr 214/hr
6kl Water Browser 360/hr 382/hr 405/hr 429/hr
1 ton Lowbed & Hoarse 30.50/km 32/km 34/km 36/km
4 ton Lowbed & Hoarse 40.50/km 43/km 46/km 48/km
30-40 ton Lowbed & Hoarse 65.50/km 69/km 74/km 78/km
Table 7: Proposed Tender document tariffs for 2019/20 MTREF
Description
Current Tariff (1 July 2018) 2019/2020 2020/2021 2021/2022
R 200 000 -R 500 000 215.00 228.00
242.00
256.00
R 500 001 -R 1000 000 342.00 363.00
384.00
407.00
R 1000 001-R 2000 000 530.00 562.00
596.00
631.00
R 2000 001-10 000 000 1,590.00 1,685.00
1,787.00
1,894.00
R 10 000 001 and above 2,650.00 2,809.00
2,978.00
3,156.00
1.5.2 Operating Expenditure Framework
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The district expenditure framework for the 2019/20 budget and MTREF is informed by the
following:
The asset renewal strategy and the repairs and maintenance plan;
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; and
Strict adherence to the principle of no project plans no budget. If there is no business
plan no funding allocation can be made and money will be transferred to needy
department.
The following table is a high level summary of the 2019/20 budget and MTREF (classified per
main type of operating expenditure):
Table 8: Summary of operating expenditure by standard classification item
Description Ref 2015/16 2016/17 2017/18 Current Year 2018/19 2019/20 Medium Term Revenue &
Expenditure Framework
R thousand 1 Audited
Outcome Audited
Outcome Audited
Outcome Original Budget
Adjusted Budget
Full Year
Forecast
Budget Year
2019/20
Budget Year +1 2020/21
Budget Year +2 2021/22
Expenditure By Type
Employee related costs 2 294,720 309,490 310,504 326,848 326,848 326,848 355,312 373,510 394,188
Remuneration of Councillors 13,251 8,468 10,153 12,106 12,106 12,106 12,106 12,832 13,602
Debt impairment 3 – – – – – – – – –
Depreciation & asset impairment 2 334,913 197,983 199,515 384,824 210,000 210,000 184,257 202,683 222,951
Finance charges – – – 500 500 500 600 630 662 Bulk purchases 2 – – 13,740 18,000 18,000 18,000 18,000 21,600 24,000
Other materials 8 64,181 27,755 11,213 17,080 19,230 19,230 115,500 121,275 127,339
Contracted services 220,963 56,553 24,458 20,250 130,522 130,522 77,823 81,043 82,220
Transfers and subsidies 11,663 – 12,831 15,000 15,000 15,000 20,000 26,250 27,563
Other expenditure 4, 5 52,876 42,048 72,584 87,794 48,141 48,141 63,421 55,686 77,119
Loss on disposal of PPE – – – – – – – – –
Total Expenditure
992,566
642,297
654,998
882,402
780,347
780,347
847,020
895,509
969,642
The budgeted allocation for employee related costs for the 2019/20 financial year totals R
355,312 million, which equals 42.13% of the total operating expenditure. Based on the three
year collective SALGBC agreement, salary increases have been factored into this budget at a
percentage increase of 7% for the 2019/20 financial year. An annual increase of 5.5% has
been included in the two outer years of the MTREF. As part of the district’s cost reprioritization
and cash management strategy, not all vacancies have been budgeted for 2019/20 financial
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year. As part of the planning assumptions and interventions only critical positions were
budgeted for 2019/20 budget year. The outcome of this exercise was the inclusion of R 3, 9
million in the 2019/20 financial year relating to critical and strategically important vacancies. In
addition expenditure against overtime was significantly reduced, with provisions against this
budget item only being provided for emergency services and other critical functions.
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 district’s budget.
Provision for depreciation and asset impairment has been informed by the Municipality’s Asset
Management Policy. Budget appropriations in this regard total R 184,257 million for the 2019/20
financial and equates to 22% of the total operating expenditure. Note that the implementation
of GRAP 17 accounting standard has meant recalculating a range of assets previously included
onto our assets register. This has resulted in a significant decrease in depreciation in 2019/20
financial year as compared to previous years.
Finance charges consist primarily of the bank charges. Therefore, finance charges make up
0.01% (R 600 thousand) of operating expenditure excluding annual redemption for 2019/20
and increases to R 662 thousand by 2021/22 financial year. As previously noted, the district has
improved its payment methods, as results we don’t anticipate to incur fruitless and wasteful
expenditures due to non-payment of suppliers within 30 days.
Bulk purchases are directly informed by the purchase of water from Sedibeng Water. The annual
price increases have been factored into the budget appropriations and directly inform the
revenue provisions. For 2019/20 budget year, bulk purchases amounts to R 18 million and R
21,600 million and R 24, 000 million for outer years.
Other material comprises of amongst others the purchase of fuel, diesel, materials for
maintenance, cleaning materials and chemicals. In line with the district’s repairs and
maintenance plan this group of expenditure has been prioritised to ensure sustainability of the
district’s infrastructure. For 2019/20 the appropriation against this group of expenditure has
grown five times the 2018/19 MTREF (R 96, 270 million) and continues to grow at 5.% and 5%
Page | 136
percent for the two outer years of which budget allocation is in excess of R 11.7 million by
2021/22.
As part of the compilation of the 2019/20 MTREF contracted service expenditure was critically
evaluated and operational efficiencies were enforced. In the 2019/20 financial year, this group
of expenditure totals R 77, 8 million and has reduced by just 40, 4%, clearly demonstrating the
application of cost efficiencies. For the two outer years growth has been limited to 4.1% and
1.5%. Further details relating to contracted services can be seen in MBRR SA1.
Other expenditure comprises of various line items relating to the daily operations of the
municipality. This group of expenditure has also been identified as an area in which cost savings
and efficiencies can be achieved. Growth has been limited to 31, 74% or (R 63, 421 million)
for 2019/20 and curbed at 12.20% and 38.49% percent for the two outer years, indicating the
significant cost savings that have been already realised. As compared to 2018/19 MTREF, this
group of expenditure has increased by R 15, 28 million for 2019/20 MTREF. Further details
relating to other expenditure can be seen in MBRR SA1.
The following table gives a breakdown of the main expenditure categories for the 2019/20 financial year.
Figure 1: Main operational expenditure categories for the 2019/20 financial year
Employee related costs42%
Remuneration of councillors
1%
Debt impairment
0%
Depreciation & asset impairment
22%
Finance charges0,01%
Bulk purchases2%
Other materials14%
Contracted services9%
Transfers and subsidies
2%
Other expenditure8%
Loss on disposal of PPE0%
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1.5.3 Priority given to repairs and maintenance
Aligned to the priority being given to preserving and maintaining the district’s current
infrastructure, the 2019/20 budget and MTREF provide for extensive growth in the area of asset
maintenance, as informed by the asset renewal strategy and repairs and maintenance plan of
the district. 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.
During the compilation of the 2019/20 MTREF operational repairs and maintenance was
identified as a strategic imperative owing to the aging of the district’s infrastructure and historic
deferred maintenance. To this end, repairs and maintenance was substantially increased by R
96, 27 million or more than five times as compared to 2018/19 financial year. This group of
expenditure totals to R 115,500 million for 2019/20 budget year, R 121,275 million and R
127,339 million over MTREF. The total allocation for 2019/20 equates to a growth of 5% in the
outer years. The table below provides a breakdown of the repairs and maintenance in relation
to asset class:
Table 9: Repairs and maintenance per asset class
Description 2015/16 2016/17 2017/18 Current Year 2018/19 2019/20 Medium Term Revenue &
Expenditure Framework
R thousand Audited
Outcome Audited
Outcome
Audited Outcom
e
Original Budget
Adjusted Budget
Budget Year
2019/20
Budget Year +1 2020/21
Budget Year +2 2021/22
Infrastructure
Roads Infrastructure 2,206 3,196 – 2,000 2,000 – – –
Roads 2,206 3,196 2,000 2,000 Boreholes 3,000 – 28,500 29,925 31,421
Water Treatment Works 60,000 63,000 66,150
Distribution 55,949 23,165 8,000 12,000 27,000 28,350 29,768
Community Assets – – – 500 500 – – –
Community Facilities – – – 500 500 – – –
Fire/Ambulance Stations 500 500 Other assets – 1,729 – 1,580 2,730 – – –
Operational Buildings – 1,729 – 1,580 2,730 – – –
Municipal Offices 1,729 1,580 1,580 Stores 1,150 Transport Assets 6,027 – – 2,000 2,000 – – –
Transport Assets 6,027 2,000 2,000
Total Repairs and Maintenance Expenditure 64,181 28,090 – 17,080 19,230 115,500 121,275 127,339
For 2019/20 financial year, water infrastructure (repairs and maintenance of Water Treatment
Works) has received a significant proportion of this allocation totals to 52% or R 60 million,
followed by repairs and maintenance of boreholes at 25% or R 28,5 million and Water
Distribution at 23% or R 27 million.
Page | 138
1.5.3 Capital Expenditure Framework
Table 10: 2019/20 Medium-term capital expenditure per vote
Vote Description 2015/16 2016/17 2017/18 Current Year 2018/19 2019/20 Medium Term Revenue &
Expenditure Framework
R thousand Audited
Outcome Audited
Outcome Audited
Outcome Original Budget
Adjusted Budget
Full Year Forecast
Budget Year
2019/20
Budget Year +1 2020/21
Budget Year +2 2021/22
Capital expenditure - Vote Multi-year expenditure to be appropriated
Vote 7 - Public Works & Basic Services 53,261 85,147 218,528 184,900 245,643 245,643 99,250 245,728 216,165
Capital multi-year expenditure sub- total 53,261 85,147 218,528 184,900 245,643 245,643 99,250 245,728 216,165
Single-year expenditure to be appropriated
Vote 2 - Municipal Manager 640 620 840 – – – 580 – – Vote 3 - Finance, Economy & Enterprise Development – – – – – – 2,100 2,205 2,315
Vote 4 - Corporate Services 13,945 75 1,980 12,302 2,437 2,437 10,500 5,225 4,961 Vote 5 - Development & Town Planning Services – – – 120 120 120 – – –
Vote 6 - Community Services – – – – – – 11,930 1,817 1,907 Vote 7 - Public Works & Basic Services – – – 108,888 139,922 139,922 223,514 65,709 114,417
Capital single-year expenditure sub-total 14,586 696 2,820 121,310 142,479 142,479 248,624 74,956 123,601
Total Capital Expenditure - Vote 67,846 85,843 221,348 306,210 388,122 388,122 347,874 320,684 339,766
Capital Expenditure - Functional
Governance and administration 14,586 696 2,820 12,302 2,437 2,437 13,180 7,430 7,277
Executive and council 620 840 – – – – – – Finance and administration 13,945 75 1,980 12,302 2,437 2,437 12,600 7,430 7,277
Internal audit – – – – – – 580 – –
Community and public safety – – – – – – 11,930 1,817 1,907
Community and social services – – – – – – 1,230 1,292 1,356
Sport and recreation – – – – – – – – –
Public safety – – – – – – 10,200 – –
Housing – – – – – – – – –
Health – – – – – – 500 525 551 Economic and environmental
services – – – 2,660 2,660 2,660 2,691 2,846 3,003
Planning and development – – – 120 120 120 – – –
Road transport – – – 2,540 2,540 2,540 2,691 2,846 3,003
Environmental protection – – – – – – – – –
Trading services 53,261 85,147 218,528 291,248 383,025 383,025 320,073 308,592 327,579
Energy sources – – – – – – – – –
Water management 53,261 85,147 218,528 156,711 235,510 235,510 194,003 268,592 173,579
Waste water management – – – 134,537 147,515 147,515 126,070 40,000 154,000
Total Capital Expenditure – Functional 67,846 85,843 221,348 306,210 388,122 388,122 347,874 320,684 339,766
For 2019/20 an amount of R 347,874 million has been appropriated for the development of
infrastructure which represents 29 % of our total budget. In the outer years this amount totals
R 320, 684 million and R 339,766 million respectively for each of the financial years. Water and
sanitation receives the highest allocation of R 320, 900 million followed by community services
for an amount of R 11,930 million and lastly, Corporate Services for an amount of R 10, 5
Page | 139
million. All this asset are new and further detail relating to asset classes and proposed capital
expenditure is contained in Table A9 (Asset Management). In addition to the MBRR Table A9,
MBRR Tables SA34a, b, c provides a detailed breakdown of the capital programme relating to
new asset construction, capital asset renewal as well as operational repairs and maintenance
by asset. Furthermore details breakdown of the capital budget per project over the medium-
term.
1.6 Annual Budget Tables
The following section presents the ten main budget tables as required in terms of section 8 of
the Municipal Budget and Reporting Regulations (MBRR). These tables set out the municipality’s
2019/20 budget and MTREF as to be noted by the Council. Each table is accompanied by
explanatory notes on the facing page. Below is the list of main tables as required by MBRR,
namely:
a) Table A1 Budget Summary
b) Table A2 Budgeted Financial Performance (revenue and expenditure by standard
classification)
c) Table A3 Budgeted Financial Performance (revenue and expenditure by municipal vote)
d) Table A4 Budgeted Financial Performance (revenue and expenditure)
e) Table A5 Budgeted Financial Capital Expenditure by vote, standard classification and
funding
f) Table A6 Budgeted Financial Position
g) Table A7 Budgeted Cash Flows
h) Table A8 Cash backed reserves/accumulated surplus reconciliation
i) Table A9 Asset Management
j) Table A10 Basic service delivery measurement
Page | 140
1. Table A1 is a budget summary and provides a concise overview of the district’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
Description 2015/16 2016/17 2017/18
R thousandsAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Pre-audit
outcome
Budget Year
2019/20
Budget Year
+1 2020/21
Budget Year
+2 2021/22
Financial Performance
Property rates – – – – – – – – – –
Serv ice charges – 158 656 534 534 534 – 557 668 868
Inv estment rev enue 3,024 4,784 11,234 – 18,521 18,521 – – – –
Transfers recognised - operational 513,723 554,981 626,994 699,511 699,511 699,511 – 773,335 852,106 933,949
Other ow n rev enue 1,883 1,390 1,659 1,675 1,675 1,675 – 2,082 2,310 2,546
Total Revenue (excluding capital transfers and
contributions)
518,630 561,314 640,543 701,720 720,241 720,241 – 775,974 855,083 937,363
Employ ee costs 294,720 309,490 310,504 326,848 326,848 326,848 – 355,312 373,510 394,188
Remuneration of councillors 13,251 8,468 10,153 12,106 12,106 12,106 – 12,106 12,832 13,602
Depreciation & asset impairment 334,913 197,983 199,515 384,824 210,000 210,000 – 184,257 202,683 222,951
Finance charges – – – 500 500 500 – 600 630 662
Materials and bulk purchases 64,181 27,755 24,952 35,080 37,230 37,230 – 133,500 142,875 151,339
Transfers and grants 11,663 – 12,831 15,000 15,000 15,000 – 20,000 26,250 27,563
Other ex penditure 273,839 98,601 97,042 108,044 178,663 178,663 – 141,245 136,729 159,338
Total Expenditure 992,566 642,297 654,998 882,402 780,347 780,347 – 847,020 895,509 969,642
Surplus/(Deficit) (473,936) (80,983) (14,455) (180,682) (60,106) (60,106) – (71,046) (40,425) (32,280)
Transfers and subsidies - capital (monetary allocations) (National / Prov incial and District)101,194 109,221 251,889 295,614 453,288 453,288 – 295,225 300,574 319,168
Contributions recognised - capital & contributed assets – – – – – – – – – –
Surplus/(Deficit) after capital transfers &
contributions
(372,742) 28,238 237,434 114,932 393,182 393,182 – 224,178 260,149 286,888
Share of surplus/ (deficit) of associate – – – – – – – – – –
Surplus/(Deficit) for the year (372,742) 28,238 237,434 114,932 393,182 393,182 – 224,178 260,149 286,888
Capital expenditure & funds sources
Capital expenditure 67,846 85,843 221,348 306,210 388,122 388,122 – 347,874 320,684 339,766
Transfers recognised - capital 53,261 85,147 218,528 289,788 371,565 371,565 – 294,764 300,938 319,557
Borrow ing – – – – – – – – – –
Internally generated funds 14,586 696 2,820 16,422 16,557 16,557 – 53,110 19,747 20,209
Total sources of capital funds 67,846 85,843 221,348 306,210 388,122 388,122 – 347,874 320,684 339,766
Financial position
Total current assets 128,539 138,287 142,944 112,273 429,059 429,059 – 177,511 189,009 197,083
Total non current assets 3,670,801 4,472,566 4,496,782 2,526,072 4,880,521 4,884,498 2,237 5,213,796 5,528,358 5,870,481
Total current liabilities 636,098 272,169 160,314 102,922 48,383 48,383 – 19,432 21,529 23,759
Total non current liabilities 47,321 49,429 49,217 51,511 58,320 58,320 – 40,315 47,075 54,208
Community w ealth/Equity 3,118,540 4,289,492 4,427,812 2,487,890 5,204,877 5,204,877 – 5,349,960 5,676,162 6,027,767
Cash flows
Net cash from (used) operating 213,489 1,303,397 307,864 409,756 604,965 604,965 – 315,236 332,832 349,839
Net cash from (used) inv esting (201,894) (1,289,946) (221,111) (306,210) (453,288) (453,288) – (347,874) (320,684) (339,766)
Net cash from (used) financing (7,042) (1,431) – – – – – – – –
Cash/cash equivalents at the year end 1,803 13,823 100,576 203,546 252,253 252,253 – 167,361 179,509 189,583
Cash backing/surplus reconciliation
Cash and inv estments av ailable 1,803 13,824 100,576 100,000 411,462 411,462 – 167,361 179,509 189,583
Application of cash and inv estments (13,145,615) 101,090 132,007 99,126 44,394 44,394 – 17,640 18,593 19,615
Balance - surplus (shortfall) 13,147,418 (87,266) (31,431) 874 367,068 367,068 – 149,721 160,916 169,967
Asset management
Asset register summary (WDV) – 3,671,432 3,373,292 2,544,652 2,530,319 2,530,319 2,530,319 – – –
Depreciation 334,913 384,709 – 384,824 210,000 210,000 210,000 184,257 202,683 222,951
Renew al and Upgrading of Ex isting Assets – – – – – – – 206,195 48,196 120,000
Repairs and Maintenance 64,181 28,090 – 17,080 19,230 19,230 19,230 115,500 121,275 127,339
Free services
Cost of Free Basic Serv ices prov ided – – – – – – – – – –
Rev enue cost of free serv ices prov ided – – – – – – – – – –
Households below minimum service level
Water: 61 61 61 61 61 61 61 61 61 61
Sanitation/sew erage: – – – – – – – – – –
Energy : – – – – – – – – – –
Refuse: – – – – – – – – – –
2019/20 Medium Term Revenue &
Expenditure FrameworkCurrent Year 2018/19
DC38 Ngaka Modiri Molema - Table A1 Budget Summary
Page | 141
compliance, as well as the municipality’s commitment to eliminating basic service delivery
backlogs.
3. Financial management reforms emphasises the importance of the municipal budget being
funded. This requires the simultaneous assessment of the Financial Performance, Financial
Position and Cash Flow Budgets, along with the Capital Budget. The Budget Summary
provides the key information in this regard:
a. The operating budget after Total Expenditure is negative over the MTREF due to
depreciation and asset impairment which distorted the budget of the municipality;
b. Capital expenditure is balanced by capital funding sources, of which
i. Transfers recognised is reflected on the Financial Performance Budget;
ii. Borrowing is incorporated in the net cash from financing on the Cash Flow
Budget
iii. Internally generated funds is financed from equitable shares and other own
revenue.
4. The Cash backing/surplus reconciliation shows that in previous financial years the
municipality was not paying much attention to managing this aspect of its finances, and
consequently many of its obligations are not cash-backed due to huge amount of creditors
to be paid. This placed the municipality in a very vulnerable financial position. However, for
the current financial year (2018/19) the municipality was able to clear-off its accrual
account, and we remain resolute that, come 2019/20 financial year we will not carry over
any substantial debt. Consequently Council has taken a deliberate decision to ensure
adequate cash-backing for all material obligations in accordance with the recently adopted
Funding and Reserves Policy. This cannot be achieved in one financial year. But over the
MTREF there is progressive improvement in the level of cash-backing of obligations. It is
anticipated that the goal of having substantive surplus/reserves will be achieved by 2021/22,
when a small surplus is reflected.
5. Even though the Council is placing great emphasis on securing the financial sustainability of
the municipality, this is not being done at the expense of services to the poor. The section
of Free Services shows that the amount spent on Free Basic Services and the revenue cost
of free services provided by the municipality continues to increase. In addition, the
municipality continues to make progress in addressing service delivery backlogs. Recently,
the Department of Water and Sanitation confirmed that Drought Relief budget allocation to
the municipality will be converted to Schedule 5b from Schedule 6b of Division of Revenue
Act. This means that the municipality will now be an implementing agent for Drought Relief
projects henceforth for the entire district. The budget allocated to district by Department of
Page | 142
Water and Sanitation is R 157,674 million. Therefore, it is anticipated that by 2021/22 the
water backlog will have been very nearly eliminated.
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. Government Finance Statistics Functions and Sub-
functions are standardised to assist the compilation of national and international accounts
for comparison purposes.
2. Total Revenue by functional classification must reconcile to Total Operating Revenue shown
in Budgeted Financial Performance (revenue and expenditure).
DC38 Ngaka Modiri Molema - Table A2 Budgeted Financial Performance (revenue and expenditure by functional classification)
Functional Classification Description Ref 2015/16 2016/17 2017/18
R thousand 1Audited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Budget Year
2019/20
Budget Year
+1 2020/21
Budget Year
+2 2021/22
Revenue - Functional
Governance and administration 516,622 559,473 632,119 387,069 406,889 406,889 307,725 375,345 402,504
Ex ecutiv e and council – – – 56,164 61,712 61,712 49,281 50,296 53,111
Finance and administration 516,622 559,473 632,119 330,904 345,177 345,177 258,444 325,050 349,393
Internal audit – – – – – – – – –
Community and public safety – – 7,299 135,475 143,349 143,349 166,006 158,129 167,256
Community and social serv ices – – 990 11,524 11,734 11,734 10,455 10,654 11,583
Sport and recreation – – – – – – – – –
Public safety – – 6,309 110,958 119,050 119,050 143,223 134,450 141,938
Housing – – – – – – – – –
Health – – – 12,993 12,564 12,564 12,328 13,024 13,734
Economic and environmental services 3,801 3,959 3,659 39,867 34,279 34,279 27,679 25,332 26,894
Planning and dev elopment 1,849 1,578 1,124 27,403 23,714 23,714 24,988 22,486 23,891
Road transport 1,952 2,381 2,535 12,464 10,565 10,565 2,691 2,846 3,003
Env ironmental protection – – – – – – – – –
Trading services 100,428 107,102 249,354 434,923 589,012 589,012 569,788 596,852 659,877
Energy sources – – – – – – – – –
Water management 100,428 107,102 249,354 300,386 441,496 441,496 437,438 556,852 505,877
Waste w ater management – – – 134,537 147,515 147,515 132,350 40,000 154,000
Waste management – – – – – – – – –
Other 4 – – – – – – – – –
Total Revenue - Functional 2 620,851 670,535 892,432 997,334 1,173,529 1,173,529 1,071,198 1,155,658 1,256,531
Expenditure - Functional
Governance and administration 700,052 593,148 621,565 564,733 385,392 385,392 380,956 412,732 436,266
Ex ecutiv e and council 31,142 8,468 10,153 56,164 61,712 61,712 49,281 50,296 53,111
Finance and administration 668,910 584,680 611,411 508,568 323,680 323,680 323,262 353,610 373,868
Internal audit – – – – – – 8,413 8,826 9,287
Community and public safety 4,594 – 6,070 135,475 143,349 143,349 160,006 158,129 167,256
Community and social serv ices 315 – 990 11,524 11,734 11,734 10,455 10,654 11,583
Sport and recreation – – – – – – – – –
Public safety 4,046 – 5,080 110,958 119,050 119,050 137,223 134,450 141,938
Housing – – – – – – – – –
Health 233 – – 12,993 12,564 12,564 12,328 13,024 13,734
Economic and environmental services 5,224 3,959 3,659 37,207 31,619 31,619 30,153 27,910 29,606
Planning and dev elopment 3,019 1,578 1,124 27,283 23,594 23,594 24,988 22,486 23,891
Road transport 2,206 2,381 2,535 9,924 8,025 8,025 5,164 5,425 5,715
Env ironmental protection – – – – – – – – –
Trading services 282,696 44,912 23,704 144,987 219,987 219,987 275,906 296,738 336,515
Energy sources – – – – – – – – –
Water management 282,696 44,912 23,704 144,987 219,987 219,987 275,906 296,738 336,515
Waste w ater management – – – – – – – – –
Waste management – – – – – – – – –
Other 4 – – – – – – – – –
Total Expenditure - Functional 3 992,566 642,020 654,998 882,402 780,347 780,347 847,020 895,509 969,642
Surplus/(Deficit) for the year (371,716) 28,515 237,434 114,932 393,182 393,182 224,178 260,149 286,888
Current Year 2018/192019/20 Medium Term Revenue &
Expenditure Framework
Page | 143
3. Total Expenditure by Functional Classification must reconcile to Total Operating Expenditure
shown in Budgeted Financial Performance (revenue and expenditure).
4. All amounts must be classified under a functional classification. The GFS function 'Other' is
only for Abattoirs, Air Transport, Forestry, Licensing and Regulation, Markets and Tourism -
and if used must be supported by footnotes. Nothing else may be placed under 'Other'.
Assign associate share to relevant classification.
Page | 144
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 and must reconcile
to financial performance (Revenue and Expenditure by Functional Classification and
Expenditure). This means it is possible to present the operating surplus or deficit of a vote.
2. Note that the surpluses on these trading accounts are utilised as an internal funding source
for the capital programme for asset renewal, refurbishment and the development of new
asset infrastructure, and are not used to cross-subsidise other municipal services.
DC38 Ngaka Modiri Molema - Table A3 Budgeted Financial Performance (revenue and expenditure by municipal vote)
Vote Description Ref 2015/16 2016/17 2017/18
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Budget Year
2019/20
Budget Year
+1 2020/21
Budget Year
+2 2021/22
Revenue by Vote 1
Vote 1 - Ex ecutiv e and Council – – – 33,960 30,557 30,557 33,972 35,671 37,666
Vote 2 - Municipal Manager – – – 22,205 31,155 31,155 15,308 14,625 15,445
Vote 3 - Finance, Economy & Enterprise Dev elopment 516,305 559,256 631,269 231,124 250,574 250,574 164,957 222,467 249,174
Vote 4 - Corporate Serv ices 317 217 851 99,781 94,604 94,604 93,488 102,582 100,219
Vote 5 - Dev elopment & Tow n Planning Serv ices 1,849 1,578 1,124 27,403 27,403 27,403 24,988 22,486 23,891
Vote 6 - Community Serv ices – – 7,299 135,475 143,349 143,349 166,006 158,129 167,256
Vote 7 - Public Works & Basic Serv ices 102,380 109,483 251,889 447,386 595,888 595,888 572,479 599,698 662,880
Vote 8 - Internal Audit – – – – – – – – –
Vote 9 - [NAME OF VOTE 9] – – – – – – – – –
Vote 10 - [NAME OF VOTE 10] – – – – – – – – –
Vote 11 - [NAME OF VOTE 11] – – – – – – – – –
Vote 12 - [NAME OF VOTE 12] – – – – – – – – –
Vote 13 - [NAME OF VOTE 13] – – – – – – – – –
Vote 14 - [NAME OF VOTE 14] – – – – – – – – –
Vote 15 - [NAME OF VOTE 15] – – – – – – – – –
Total Revenue by Vote 2 620,851 670,535 892,432 997,334 1,173,529 1,173,529 1,071,198 1,155,658 1,256,531
Expenditure by Vote to be appropriated 1
Vote 1 - Ex ecutiv e and Council 14,278 8,468 10,153 33,960 30,557 30,557 33,972 35,671 37,666
Vote 2 - Municipal Manager 16,864 – – 22,205 31,155 31,155 15,308 14,625 15,445
Vote 3 - Finance, Economy & Enterprise Dev elopment 353,053 274,697 297,569 418,090 238,379 238,379 228,974 251,028 273,649
Vote 4 - Corporate Serv ices 315,857 309,983 313,843 90,478 85,301 85,301 94,288 102,582 100,219
Vote 5 - Dev elopment & Tow n Planning Serv ices 3,019 1,578 1,124 27,283 23,594 23,594 24,988 22,486 23,891
Vote 6 - Community Serv ices 4,594 – 6,070 135,475 143,349 143,349 160,006 158,129 167,256
Vote 7 - Public Works & Basic Serv ices 284,901 47,293 26,239 154,910 228,012 228,012 281,070 302,162 342,230
Vote 8 - Internal Audit – – – – – – 8,413 8,826 9,287
Vote 9 - [NAME OF VOTE 9] – – – – – – – – –
Vote 10 - [NAME OF VOTE 10] – – – – – – – – –
Vote 11 - [NAME OF VOTE 11] – – – – – – – – –
Vote 12 - [NAME OF VOTE 12] – – – – – – – – –
Vote 13 - [NAME OF VOTE 13] – – – – – – – – –
Vote 14 - [NAME OF VOTE 14] – – – – – – – – –
Vote 15 - [NAME OF VOTE 15] – – – – – – – – –
Total Expenditure by Vote 2 992,566 642,020 654,998 882,402 780,347 780,347 847,020 895,509 969,642
Surplus/(Deficit) for the year 2 (371,716) 28,515 237,434 114,932 393,182 393,182 224,178 260,149 286,888
Current Year 2018/192019/20 Medium Term Revenue &
Expenditure Framework
Page | 145
Explanatory notes to Table A4 - Budgeted Financial Performance (revenue and expenditure)
1. Total revenue is R 1,071,198 billion in 2019/20 and escalates to R 1,256,531 billion by
2021/22. This represents a year-on-year increase of 8% for the 2020/21 financial year and
9% for the 2021/22 financial year.
2. Services charges relating to water and sanitation constitute a smaller component of the
revenue basket of the district totaling R 557 thousand for the 2019/20 financial year and
increasing to R 868 thousand by 2021/22. For the 2019/20 financial year services charges
amount to 0.05 % of the total revenue base and grows by 0.07% per annum over the
DC38 Ngaka Modiri Molema - Table A4 Budgeted Financial Performance (revenue and expenditure)
Description Ref 2015/16 2016/17 2017/18
R thousand 1Audited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Pre-audit
outcome
Budget Year
2019/20
Budget Year
+1 2020/21
Budget Year
+2 2021/22
Revenue By Source
Property rates 2 – – – – – – – – – –
Serv ice charges - electricity rev enue 2 – – – – – – – – – –
Serv ice charges - w ater rev enue 2 – 40 602 478 478 478 – 450 550 750
Serv ice charges - sanitation rev enue 2 – 118 54 56 56 56 – 107 118 118
Serv ice charges - refuse rev enue 2 – – – – – – – – – –
Rental of facilities and equipment 186 209 215 216 216 216 – 218 221 223
Interest earned - ex ternal inv estments 3,024 4,784 11,234 – 18,521 18,521 – – – –
Interest earned - outstanding debtors – – – – – – – – –
Div idends receiv ed – – – – – – – – –
Fines, penalties and forfeits – – – – – – – – –
Licences and permits – – – – – – – – –
Agency serv ices – – – – – – – – –
Transfers and subsidies 513,723 554,981 626,994 699,511 699,511 699,511 – 773,335 852,106 933,949
Other rev enue 2 1,698 1,180 1,444 1,459 1,459 1,459 – 1,863 2,089 2,323
Gains on disposal of PPE
Total Revenue (excluding capital transfers
and contributions)
518,630 561,314 640,543 701,720 720,241 720,241 – 775,974 855,083 937,363
Expenditure By Type
Employ ee related costs 2 294,720 309,490 310,504 326,848 326,848 326,848 – 355,312 373,510 394,188
Remuneration of councillors 13,251 8,468 10,153 12,106 12,106 12,106 12,106 12,832 13,602
Debt impairment 3 – – – – – – – – –
Depreciation & asset impairment 2 334,913 197,983 199,515 384,824 210,000 210,000 – 184,257 202,683 222,951
Finance charges – – – 500 500 500 – 600 630 662
Bulk purchases 2 – – 13,740 18,000 18,000 18,000 – 18,000 21,600 24,000
Other materials 8 64,181 27,755 11,213 17,080 19,230 19,230 – 115,500 121,275 127,339
Contracted serv ices 220,963 56,553 24,458 20,250 130,522 130,522 – 77,823 81,043 82,220
Transfers and subsidies 11,663 – 12,831 15,000 15,000 15,000 – 20,000 26,250 27,563
Other ex penditure 4, 5 52,876 42,048 72,584 87,794 48,141 48,141 – 63,421 55,686 77,119
Loss on disposal of PPE – – – – – – – – – –
Total Expenditure 992,566 642,297 654,998 882,402 780,347 780,347 – 847,020 895,509 969,642
Surplus/(Deficit) (473,936) (80,983) (14,455) (180,682) (60,106) (60,106) – (71,046) (40,425) (32,280)
Transfers and subsidies - capital (monetary
allocations) (National / Prov incial and District) 101,194 109,221 251,889 295,614 453,288 453,288 295,225 300,574 319,168
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)
Surplus/(Deficit) after capital transfers &
contributions
(372,742) 28,238 237,434 114,932 393,182 393,182 – 224,178 260,149 286,888
Tax ation
Surplus/(Deficit) after taxation (372,742) 28,238 237,434 114,932 393,182 393,182 – 224,178 260,149 286,888
Attributable to minorities
Surplus/(Deficit) attributable to municipality (372,742) 28,238 237,434 114,932 393,182 393,182 – 224,178 260,149 286,888
Share of surplus/ (deficit) of associate 7
Surplus/(Deficit) for the year (372,742) 28,238 237,434 114,932 393,182 393,182 – 224,178 260,149 286,888
2019/20 Medium Term Revenue &
Expenditure FrameworkCurrent Year 2018/19
Page | 146
medium-term. This growth can mainly be attributed to the increase of household with
complete pipe water inside dwelling.
3. Transfers recognised – operating includes the local government equitable share and other
operating grants from national and provincial government. It needs to be noted that in real
terms the grants receipts from national government are growing rapidly over the MTREF by
11% and 10% for the two outer years.
The following items illustrates the major expenditure items per type
4. Other expenditure has significantly increased over the 2019/20 to 2021/22 period, escalating
from R 63,421 million to R 77,119 million.
5. Materials and Bulk purchases have significantly increased over the 2019/20 to 2021/22
period escalating from R 133,500 million to R 151,339 million.
6. Employee related costs increased over the 2019/20 to 2021/22 period escalating from
R 355,312 million to R 394,188 million.
Page | 147
Vote Description Ref 2015/16 2016/17 2017/18
R thousand 1Audited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Pre-audit
outcome
Budget Year
2019/20
Budget Year
+1 2020/21
Budget Year
+2 2021/22
Capital expenditure - Vote
Multi-year expenditure to be appropriated 2
Vote 1 - Ex ecutiv e and Council – – – – – – – – – –
Vote 2 - Municipal Manager – – – – – – – – – –
Vote 3 - Finance, Economy & Enterprise Dev elopment – – – – – – – – – –
Vote 4 - Corporate Serv ices – – – – – – – – – –
Vote 5 - Dev elopment & Tow n Planning Serv ices – – – – – – – – – –
Vote 6 - Community Serv ices – – – – – – – – – –
Vote 7 - Public Works & Basic Serv ices 53,261 85,147 218,528 184,900 245,643 245,643 – 99,250 245,728 216,165
Vote 8 - Internal Audit – – – – – – – – – –
Vote 9 - [NAME OF VOTE 9] – – – – – – – – – –
Vote 10 - [NAME OF VOTE 10] – – – – – – – – – –
Vote 11 - [NAME OF VOTE 11] – – – – – – – – – –
Vote 12 - [NAME OF VOTE 12] – – – – – – – – – –
Vote 13 - [NAME OF VOTE 13] – – – – – – – – – –
Vote 14 - [NAME OF VOTE 14] – – – – – – – – – –
Vote 15 - [NAME OF VOTE 15] – – – – – – – – – –
Capital multi-year expenditure sub-total 7 53,261 85,147 218,528 184,900 245,643 245,643 – 99,250 245,728 216,165
Single-year expenditure to be appropriated 2
Vote 1 - Ex ecutiv e and Council – – – – – – – – – –
Vote 2 - Municipal Manager 640 620 840 – – – – 580 – –
Vote 3 - Finance, Economy & Enterprise Dev elopment – – – – – – – 2,100 2,205 2,315
Vote 4 - Corporate Serv ices 13,945 75 1,980 12,302 2,437 2,437 – 10,500 5,225 4,961
Vote 5 - Dev elopment & Tow n Planning Serv ices – – – 120 120 120 – – – –
Vote 6 - Community Serv ices – – – – – – – 11,930 1,817 1,907
Vote 7 - Public Works & Basic Serv ices – – – 108,888 139,922 139,922 – 223,514 65,709 114,417
Vote 8 - Internal Audit – – – – – – – – – –
Vote 9 - [NAME OF VOTE 9] – – – – – – – – – –
Vote 10 - [NAME OF VOTE 10] – – – – – – – – – –
Vote 11 - [NAME OF VOTE 11] – – – – – – – – – –
Vote 12 - [NAME OF VOTE 12] – – – – – – – – – –
Vote 13 - [NAME OF VOTE 13] – – – – – – – – – –
Vote 14 - [NAME OF VOTE 14] – – – – – – – – – –
Vote 15 - [NAME OF VOTE 15] – – – – – – – – – –
Capital single-year expenditure sub-total 14,586 696 2,820 121,310 142,479 142,479 – 248,624 74,956 123,601
Total Capital Expenditure - Vote 67,846 85,843 221,348 306,210 388,122 388,122 – 347,874 320,684 339,766
Capital Expenditure - Functional
Governance and administration 14,586 696 2,820 12,302 2,437 2,437 – 13,180 7,430 7,277
Ex ecutiv e and council 640 620 840 – – – – – – –
Finance and administration 13,945 75 1,980 12,302 2,437 2,437 – 12,600 7,430 7,277
Internal audit – – – – – – – 580 – –
Community and public safety – – – – – – – 11,930 1,817 1,907
Community and social serv ices – – – – – – – 1,230 1,292 1,356
Sport and recreation – – – – – – – – – –
Public safety – – – – – – – 10,200 – –
Housing – – – – – – – – – –
Health – – – – – – – 500 525 551
Economic and environmental services – – – 2,660 2,660 2,660 – 2,691 2,846 3,003
Planning and dev elopment – – – 120 120 120 – – – –
Road transport – – – 2,540 2,540 2,540 – 2,691 2,846 3,003
Env ironmental protection – – – – – – – – – –
Trading services 53,261 85,147 218,528 291,248 383,025 383,025 – 320,073 308,592 327,579
Energy sources – – – – – – – – – –
Water management 53,261 85,147 218,528 156,711 235,510 235,510 – 194,003 268,592 173,579
Waste w ater management – – – 134,537 147,515 147,515 – 126,070 40,000 154,000
Waste management – – – – – – – – – –
Other – – – – – – – – – –
Total Capital Expenditure - Functional 3 67,846 85,843 221,348 306,210 388,122 388,122 – 347,874 320,684 339,766
Funded by:
National Gov ernment 53,261 85,147 218,528 289,788 371,565 371,565 – 294,764 300,938 319,557
Prov incial Gov ernment – – – – – – – – – –
District Municipality – – – – – – – – – –
Other transfers and grants – – – – – – – – – –
Transfers recognised - capital 4 53,261 85,147 218,528 289,788 371,565 371,565 – 294,764 300,938 319,557
Borrowing 6 – – – – – – – – – –
Internally generated funds 14,586 696 2,820 16,422 16,557 16,557 – 53,110 19,747 20,209
Total Capital Funding 7 67,846 85,843 221,348 306,210 388,122 388,122 – 347,874 320,684 339,766
2019/20 Medium Term Revenue &
Expenditure FrameworkCurrent Year 2018/19
Page | 148
Explanatory notes to Table A5 - Budgeted Capital Expenditure by vote, standard
classification and funding source
1. Table A5 above shows 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. The MFMA provides that a municipality may approve multi-year or single-year capital budget
appropriations. In relation to multi-year appropriations, R 99, 250 million has been allocated
for 2019/20 budget year. This allocation escalates to R 245,728 million in 2020/21 and then
flattens out to R 216,165 million in 2021/22 owing primarily to the fact that various projects
reach completion in 2021/22 financial year.
3. Single-year capital expenditure has been appropriated at R 248,624 million for the 2019/20
financial year and remains relatively constant over the MTREF at levels of R74, 956 million
and R 123,601 million respectively for the two outer years.
4. 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
specialised 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.
5. The capital programme is funded from capital grants and transfers, equitable shares and
internally generated funds from investment revenue. For 2019/20 capital transfers totals
R 347,847 million and escalates to R 339,766 million by 2021/22 .These funding sources are
further discussed in detail in Overview of Budget Funding.
Page | 149
Explanatory notes to Table A6 - Budgeted Financial Position
1. Table A6 is consistent with international standards of good financial management practice,
and improves understandability for councilors and management of the impact of the budget
on the statement of financial position (balance sheet).
2. This format of presenting the statement of financial position is aligned to GRAP1, which is
generally aligned to the international version which presents Assets less Liabilities as
“accounting” Community Wealth. The order of items within each group illustrates items in
order of liquidity; i.e. assets readily converted to cash, or liabilities immediately required to
be met from cash, appear first.
3. Table A6 is supported by an extensive table of notes in SA3 which provides a detailed
analysis of the major components of a number of items, including:
• Call investments deposits;
Consumer debtors;
Property, plant and equipment;
DC38 Ngaka Modiri Molema - Table A6 Budgeted Financial Position
Description Ref 2015/16 2016/17 2017/18
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Pre-audit
outcome
Budget Year
2019/20
Budget Year
+1 2020/21
Budget Year
+2 2021/22
ASSETS
Current assets
Cash 1,803 13,824 100,576 100,000 252,253 252,253 167,361 179,509 189,583
Call inv estment deposits 1 – – – – 159,209 159,209 – – – –
Consumer debtors 1 – – – – – – – – – –
Other debtors 109,462 114,467 24,964 – 10 10 – – –
Current portion of long-term receiv ables – – – – – – – –
Inv entory 2 17,273 9,996 17,404 12,273 17,587 17,587 10,150 9,500 7,500
Total current assets 128,539 138,287 142,944 112,273 429,059 429,059 – 177,511 189,009 197,083
Non current assets
Long-term receiv ables – – – –
Inv estments – – – –
Inv estment property – – – –
Inv estment in Associate – – – –
Property , plant and equipment 3 3,670,801 4,472,566 4,494,163 2,525,835 4,880,284 4,880,284 – 5,211,559 5,528,358 5,864,045
Biological – – – –
Intangible 631 237 237 4,214 2,237 2,237 6,437 10,322 14,401
Other non-current assets 1,988 – – – – – –
Total non current assets 3,670,801 4,472,566 4,496,782 2,526,072 4,880,521 4,884,498 2,237 5,213,796 5,528,358 5,870,481
TOTAL ASSETS 3,799,340 4,610,853 4,639,725 2,638,346 5,309,580 5,313,557 2,237 5,391,307 5,717,367 6,067,564
LIABILITIES
Current liabilities
Bank ov erdraft 1 – – –
Borrow ing 4 796 – – – – – – – – –
Consumer deposits 1,904 2,637 – – – – – –
Trade and other pay ables 4 634,409 269,209 156,971 99,126 44,587 44,587 – 17,640 18,593 19,615
Prov isions 892 1,056 706 3,796 3,796 3,796 1,792 2,937 4,144
Total current liabilities 636,098 272,169 160,314 102,922 48,383 48,383 – 19,432 21,529 23,759
Non current liabilities
Borrow ing 635 – – – – – – – – –
Prov isions 46,686 49,429 49,217 51,511 58,320 58,320 – 40,315 47,075 54,208
Total non current liabilities 47,321 49,429 49,217 51,511 58,320 58,320 – 40,315 47,075 54,208
TOTAL LIABILITIES 683,419 321,598 209,531 154,433 106,703 106,703 – 59,747 68,605 77,967
NET ASSETS 5 3,115,921 4,289,255 4,430,195 2,483,913 5,202,877 5,206,854 2,237 5,331,560 5,648,762 5,989,597
COMMUNITY WEALTH/EQUITY
Accumulated Surplus/(Deficit) 3,118,540 4,289,492 4,427,812 2,487,890 5,204,877 5,204,877 5,349,960 5,676,162 6,027,767
Reserv es 4 – – – – – – – – – –
TOTAL COMMUNITY WEALTH/EQUITY 5 3,118,540 4,289,492 4,427,812 2,487,890 5,204,877 5,204,877 – 5,349,960 5,676,162 6,027,767
2019/20 Medium Term Revenue &
Expenditure FrameworkCurrent Year 2018/19
Page | 150
Trade and other payables;
Non-current Provision;
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.
.
Page | 151
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. Cash and cash equivalents totals to R 200 million as at the end of the 2018/19 financial year
and escalates to R 189, 583 million by 2021/22.
DC38 Ngaka Modiri Molema - Table A7 Budgeted Cash Flows
Description Ref 2015/16 2016/17 2017/18
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Pre-audit
outcome
Budget Year
2019/20
Budget Year
+1 2020/21
Budget Year
+2 2021/22
CASH FLOW FROM OPERATING ACTIVITIES
Receipts
Property rates – – –
Serv ice charges – – 2,307 534 530 530 557 668 868
Other rev enue 237,094 2,274 8 1,675 42,000 42,000 2,082 2,310 2,546
Gov ernment - operating 1 513,653 545,281 613,966 699,511 698,972 698,972 766,370 832,560 907,269
Gov ernment - capital 1 101,194 109,221 251,889 295,614 453,288 453,288 302,190 320,120 345,848
Interest 3,024 4,784 11,234 – 18,521 18,521 – – –
Div idends – – –
Payments
Suppliers and employ ees (629,814) 641,837 (558,709) (568,936) (592,847) (592,847) (730,363) (795,946) (878,467)
Finance charges – – – (500) (500) (500) (600) (630) (662)
Transfers and Grants 1 (11,663) – (12,831) (18,142) (15,000) (15,000) (25,000) (26,250) (27,563)
NET CASH FROM/(USED) OPERATING ACTIVITIES 213,489 1,303,397 307,864 409,756 604,965 604,965 – 315,236 332,832 349,839
CASH FLOWS FROM INVESTING ACTIVITIES
Receipts
Proceeds on disposal of PPE (1,981) (85,606) – – – – – – – –
Decrease (Increase) in non-current debtors – – – – – – – – – –
Decrease (increase) other non-current receiv ables 29,901 1,751 – – – – – – – –
Decrease (increase) in non-current inv estments – – – – – – – – – –
Payments
Capital assets (229,814) (1,206,091) (221,111) (306,210) (453,288) (453,288) (347,874) (320,684) (339,766)
NET CASH FROM/(USED) INVESTING ACTIVITIES (201,894) (1,289,946) (221,111) (306,210) (453,288) (453,288) – (347,874) (320,684) (339,766)
CASH FLOWS FROM FINANCING ACTIVITIES
Receipts
Short term loans – – – – – – – – – –
Borrow ing long term/refinancing – – – – – – – – – –
Increase (decrease) in consumer deposits – – – – – – – – – –
Payments
Repay ment of borrow ing (7,042) (1,431) – – – – – – –
NET CASH FROM/(USED) FINANCING ACTIVITIES (7,042) (1,431) – – – – – – – –
NET INCREASE/ (DECREASE) IN CASH HELD 4,553 12,020 86,753 103,546 151,677 151,677 – (32,639) 12,148 10,074
Cash/cash equiv alents at the y ear begin: 2 (2,750) 1,803 13,824 100,000 100,576 100,576 200,000 167,361 179,509
Cash/cash equiv alents at the y ear end: 2 1,803 13,823 100,576 203,546 252,253 252,253 – 167,361 179,509 189,583
2019/20 Medium Term Revenue &
Expenditure FrameworkCurrent Year 2018/19
Page | 152
Explanatory notes to Table A8 - Cash Backed Reserves/Accumulated Surplus
Reconciliation
1. The cash backed reserves/accumulated surplus reconciliation is aligned to the requirements
of MFMA Circular 42 – Funding a Municipal Budget.
2. 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.
3. 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”.
4. Non-compliance with section 18 of the MFMA is assumed because a shortfall would indirectly
indicate that the annual budget is not appropriately funded.
5. From the table it can be seen that for the period 2016/17 to 2017/18 the deficit deteriorated
from R 87,266 million to R 31,431 million.
6. Considering the requirements of section 18 of the MFMA, it can be concluded that the
adopted 2018/19 MTREF was not funded owing to the significant deficit.
7. As part of the budgeting and planning guidelines that informed the compilation of the
2019/20 MTREF the end objective of the medium-term framework was to ensure the budget
is funded aligned to section 18 of the MFMA.
8. As can be seen the budget has been modelled to progressively move from a deficit of R
31,431 million in 2017/18 to a surplus of R 367,068 million in 2018/19.
DC38 Ngaka Modiri Molema - Table A8 Cash backed reserves/accumulated surplus reconciliation
Description Ref 2015/16 2016/17 2017/18
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Pre-audit
outcome
Budget Year
2019/20
Budget Year
+1 2020/21
Budget Year
+2 2021/22
Cash and investments available
Cash/cash equiv alents at the y ear end 1 1,803 13,823 100,576 203,546 252,253 252,253 – 167,361 179,509 189,583
Other current inv estments > 90 day s – 0 – (103,546) 159,209 159,209 – – – –
Non current assets - Inv estments 1 – – – – – – – – – –
Cash and investments available: 1,803 13,824 100,576 100,000 411,462 411,462 – 167,361 179,509 189,583
Application of cash and investments
Unspent conditional transfers 90,443 20,106 7,078 – 9,463 9,463 – – – –
Unspent borrow ing – – – – – – – – –
Statutory requirements 2
Other w orking capital requirements 3 (13,236,058) 80,983 124,929 99,126 34,931 34,931 – 17,640 18,593 19,615
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: (13,145,615) 101,090 132,007 99,126 44,394 44,394 – 17,640 18,593 19,615
Surplus(shortfall) 13,147,418 (87,266) (31,431) 874 367,068 367,068 – 149,721 160,916 169,967
2019/20 Medium Term Revenue &
Expenditure FrameworkCurrent Year 2018/19
Page | 153
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 has only met 8 per cent of
repairs and maintenance of PPE.
Page | 154
DC38 Ngaka Modiri Molema - Table A9 Asset Management
Description Ref 2015/16 2016/17 2017/18
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Budget Year
2019/20
Budget Year
+1 2020/21
Budget Year
+2 2021/22
CAPITAL EXPENDITURE
Total New Assets 1 67,846 94,732 – 306,210 388,122 388,122 141,679 268,488 211,766
Roads Infrastructure – – – 2,540 2,540 2,540 2,691 2,846 3,003
Storm water Infrastructure – – – – – – – – –
Electrical Infrastructure – – – – – – – – –
Water Supply Infrastructure 53,261 92,110 – 166,537 221,509 221,509 54,789 236,032 159,190
Sanitation Infrastructure – – – 120,531 147,515 147,515 40,750 20,000 40,000
Solid Waste Infrastructure – – – – – – – – –
Rail Infrastructure – – – – – – – – –
Coastal Infrastructure – – – – – – – – –
Information and Communication Infrastructure – – – – – – – – –
Infrastructure 53,261 92,110 – 289,608 371,564 371,564 98,230 258,878 202,193
Community Facilities – – – – – – – – –
Sport and Recreation Facilities – – – – – – – – –
Community Assets – – – – – – – – –
Heritage Assets – – – – – – – – –
Rev enue Generating – – – – – – – – –
Non-rev enue Generating – – – – – – – – –
Investment properties – – – – – – – – –
Operational Buildings 13,809 – – 10,119 10,000 10,000 17,630 2,762 2,900
Housing – – – – – – – – –
Other Assets 13,809 – – 10,119 10,000 10,000 17,630 2,762 2,900
Biological or Cultivated Assets – – – – – – – – –
Serv itudes – – – – – – – – –
Licences and Rights 581 1,583 – 2,000 2,140 2,140 4,200 3,885 4,079
Intangible Assets 581 1,583 – 2,000 2,140 2,140 4,200 3,885 4,079
Computer Equipment – – – 304 238 238 1,740 671 183
Furniture and Office Equipment 79 433 – 180 180 180 4,680 1,768 1,860
Machinery and Equipment 117 – – – – – 500 525 551
Transport Assets – 607 – 4,000 4,000 4,000 14,700 – –
Land – – – – – – – – –
Zoo's, Marine and Non-biological Animals – – – – – – – – –
Total Renewal of Existing Assets 2 – – – – – – 16,206 – –
Roads Infrastructure – – – – – – – – –
Storm water Infrastructure – – – – – – – – –
Electrical Infrastructure – – – – – – – – –
Water Supply Infrastructure – – – – – – 16,206 – –
Sanitation Infrastructure – – – – – – – – –
Solid Waste Infrastructure – – – – – – – – –
Rail Infrastructure – – – – – – – – –
Coastal Infrastructure – – – – – – – – –
Information and Communication Infrastructure – – – – – – – – –
Infrastructure – – – – – – 16,206 – –
Community Facilities – – – – – – – – –
Sport and Recreation Facilities – – – – – – – – –
Community Assets – – – – – – – – –
Heritage Assets – – – – – – – – –
Rev enue Generating – – – – – – – – –
Non-rev enue Generating – – – – – – – – –
Investment properties – – – – – – – – –
Operational Buildings – – – – – – – – –
Housing – – – – – – – – –
Other Assets – – – – – – – – –
Biological or Cultivated Assets – – – – – – – – –
Serv itudes – – – – – – – – –
Licences and Rights – – – – – – – – –
Intangible Assets – – – – – – – – –
Computer Equipment – – – – – – – – –
Furniture and Office Equipment – – – – – – – – –
Machinery and Equipment – – – – – – – – –
Transport Assets – – – – – – – – –
Land – – – – – – – – –
Zoo's, Marine and Non-biological Animals – – – – – – – – –
Total Upgrading of Existing Assets 6 – – – – – – 189,989 48,196 120,000
Roads Infrastructure – – – – – – – – –
Storm water Infrastructure – – – – – – – – –
Electrical Infrastructure – – – – – – – – –
Water Supply Infrastructure – – – – – – 104,669 28,196 6,000
Sanitation Infrastructure – – – – – – 85,320 20,000 114,000
Solid Waste Infrastructure – – – – – – – – –
Rail Infrastructure – – – – – – – – –
Coastal Infrastructure – – – – – – – – –
Information and Communication Infrastructure – – – – – – – – –
Infrastructure – – – – – – 189,989 48,196 120,000
Community Facilities – – – – – – – – –
Sport and Recreation Facilities – – – – – – – – –
Community Assets – – – – – – – – –
Heritage Assets – – – – – – – – –
Rev enue Generating – – – – – – – – –
Non-rev enue Generating – – – – – – – – –
Investment properties – – – – – – – – –
Operational Buildings – – – – – – – – –
Housing – – – – – – – – –
Other Assets – – – – – – – – –
Biological or Cultivated Assets – – – – – – – – –
Serv itudes – – – – – – – – –
Licences and Rights – – – – – – – – –
Intangible Assets – – – – – – – – –
Computer Equipment – – – – – – – – –
Furniture and Office Equipment – – – – – – – – –
Machinery and Equipment – – – – – – – – –
Transport Assets – – – – – – – – –
Land – – – – – – – – –
Zoo's, Marine and Non-biological Animals – – – – – – – – –
Total Capital Expenditure 4 67,846 94,732 – 306,210 388,122 388,122 347,874 316,684 331,766
Roads Infrastructure – – – 2,540 2,540 2,540 2,691 2,846 3,003
Storm water Infrastructure – – – – – – – – –
Electrical Infrastructure – – – – – – – – –
Water Supply Infrastructure 53,261 92,110 – 166,537 221,509 221,509 175,664 264,228 165,190
Sanitation Infrastructure – – – 120,531 147,515 147,515 126,070 40,000 154,000
Solid Waste Infrastructure – – – – – – – – –
Rail Infrastructure – – – – – – – – –
Coastal Infrastructure – – – – – – – – –
Information and Communication Infrastructure – – – – – – – – –
Infrastructure 53,261 92,110 – 289,608 371,564 371,564 304,425 307,074 322,193
Community Facilities – – – – – – – – –
Sport and Recreation Facilities – – – – – – – – –
Community Assets – – – – – – – – –
Heritage Assets – – – – – – – – –
Rev enue Generating – – – – – – – – –
Non-rev enue Generating – – – – – – – – –
Investment properties – – – – – – – – –
Operational Buildings 13,809 – – 10,119 10,000 10,000 17,630 2,762 2,900
Housing – – – – – – – – –
Other Assets 13,809 – – 10,119 10,000 10,000 17,630 2,762 2,900
Biological or Cultivated Assets – – – – – – – – –
Serv itudes – – – – – – – – –
Licences and Rights 581 1,583 – 2,000 2,140 2,140 4,200 3,885 4,079
Intangible Assets 581 1,583 – 2,000 2,140 2,140 4,200 3,885 4,079
Computer Equipment – – – 304 238 238 1,740 671 183
Furniture and Office Equipment 79 433 – 180 180 180 4,680 1,768 1,860
Machinery and Equipment 117 – – – – – 500 525 551
Transport Assets – 607 – 4,000 4,000 4,000 14,700 – –
Land – – – – – – – – –
Zoo's, Marine and Non-biological Animals – – – – – – – – –
TOTAL CAPITAL EXPENDITURE - Asset class 67,846 94,732 – 306,210 388,122 388,122 347,874 316,684 331,766
ASSET REGISTER SUMMARY - PPE (WDV) 5 – 3,671,432 3,373,292 2,544,652 2,530,319 2,530,319 – – –
Roads Infrastructure 896,630 896,630 896,630
Storm water Infrastructure 235 235 235
Electrical Infrastructure 2,874 2,874 2,874
Water Supply Infrastructure 2,087,730 3,256,551 1,020,400 1,020,400 1,020,400
Sanitation Infrastructure 1,448,797 605,697 605,697 605,697
Solid Waste Infrastructure
Rail Infrastructure
Coastal Infrastructure
Information and Communication Infrastructure
Infrastructure – 3,536,527 3,256,551 2,525,835 2,525,835 2,525,835 – – –
Community Assets 11,834 11,109
Heritage Assets
Investment properties 69,702 66,031 10,119
Other Assets
Biological or Cultivated Assets 631 2,214 4,214
Intangible Assets
Computer Equipment 433 1,909 304 304 304
Furniture and Office Equipment 230 1,567 180 180 180
Machinery and Equipment 37,064 8,891 – – –
Transport Assets 15,012 25,020 4,000 4,000 4,000
Land
Zoo's, Marine and Non-biological Animals
TOTAL ASSET REGISTER SUMMARY - PPE (WDV) 5 – 3,671,432 3,373,292 2,544,652 2,530,319 2,530,319 – – –
EXPENDITURE OTHER ITEMS 399,094 412,799 – 401,904 229,230 229,230 299,757 323,958 350,290
Depreciation 7 334,913 384,709 – 384,824 210,000 210,000 184,257 202,683 222,951
Repairs and Maintenance by Asset Class 3 64,181 28,090 – 17,080 19,230 19,230 115,500 121,275 127,339
Roads Infrastructure 2,206 3,196 – 2,000 2,000 2,000 – – –
Storm water Infrastructure – – – – – – – – –
Electrical Infrastructure – – – – – – – – –
Water Supply Infrastructure 55,949 23,165 – 11,000 12,000 12,000 115,500 121,275 127,339
Sanitation Infrastructure – – – – – – – – –
Solid Waste Infrastructure – – – – – – – – –
Rail Infrastructure – – – – – – – – –
Coastal Infrastructure – – – – – – – – –
Information and Communication Infrastructure – – – – – – – – –
Infrastructure 58,154 26,361 – 13,000 14,000 14,000 115,500 121,275 127,339
Community Facilities – – – 500 500 500 – – –
Sport and Recreation Facilities – – – – – – – – –
Community Assets – – – 500 500 500 – – –
Heritage Assets – – – – – – – – –
Rev enue Generating – – – – – – – – –
Non-rev enue Generating – – – – – – – – –
Investment properties – – – – – – – – –
Operational Buildings – 1,729 – 1,580 2,730 2,730 – – –
Housing – – – – – – – – –
Other Assets – 1,729 – 1,580 2,730 2,730 – – –
Biological or Cultivated Assets – – – – – – – – –
Serv itudes – – – – – – – – –
Licences and Rights – – – – – – – – –
Intangible Assets – – – – – – – – –
Computer Equipment – – – – – – – – –
Furniture and Office Equipment – – – – – – – – –
Machinery and Equipment – – – – – – – – –
Transport Assets 6,027 – – 2,000 2,000 2,000 – – –
Land – – – – – – – – –
Zoo's, Marine and Non-biological Animals – – – – – – – – –
TOTAL EXPENDITURE OTHER ITEMS 399,094 412,799 – 401,904 229,230 229,230 299,757 323,958 350,290
Renewal and upgrading of Existing Assets as % of total capex 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 59.3% 15.2% 36.2%
Renewal and upgrading of Existing Assets as % of deprecn 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 111.9% 23.8% 53.8%
R&M as a % of PPE 1.7% 0.6% 0.0% 0.7% 0.4% 0.4% 2.2% 2.2% 2.2%
Renewal and upgrading and R&M as a % of PPE 0.0% 1.0% 0.0% 1.0% 1.0% 1.0% 0.0% 0.0% 0.0%
Current Year 2018/192019/20 Medium Term Revenue &
Expenditure Framework
Page | 155
DC38 Ngaka Modiri Molema - Table A9 Asset Management
Description 2015/16 2016/17 2017/18
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Budget
Year
2019/20
Budget
Year +1
2020/21
Budget
Year +2
2021/22
CAPITAL EXPENDITURE
Total New Assets 67,846 94,732 – 306,210 388,122 388,122 348,674 320,684 339,766
Roads Infrastructure – – – 2,540 2,540 2,540 2,691 2,846 3,003
Water Supply Infrastructure 53,261 92,110 – 166,537 221,509 221,509 170,184 268,228 173,190
Sanitation Infrastructure – – – 120,531 147,515 147,515 132,350 40,000 154,000
Infrastructure 53,261 92,110 – 289,608 371,564 371,564 305,225 311,074 330,193
Operational Buildings 13,809 – – 10,119 10,000 10,000 17,630 2,762 2,900
Housing – – – – – – – – –
Other Assets 13,809 – – 10,119 10,000 10,000 17,630 2,762 2,900
Licences and Rights 581 1,583 – 2,000 2,140 2,140 4,200 3,885 4,079
Intangible Assets 581 1,583 – 2,000 2,140 2,140 4,200 3,885 4,079
Computer Equipment – – – 304 238 238 1,740 671 183
Furniture and Office Equipment 79 433 – 180 180 180 4,680 1,768 1,860
Machinery and Equipment 117 – – – – – 500 525 551
Transport Assets – 607 – 4,000 4,000 4,000 14,700 – –
Operational Buildings 13,809 – – 10,119 10,000 10,000 17,630 2,762 2,900
Other Assets 13,809 – – 10,119 10,000 10,000 17,630 2,762 2,900
Licences and Rights 581 1,583 – 2,000 2,140 2,140 4,200 3,885 4,079
Intangible Assets 581 1,583 – 2,000 2,140 2,140 4,200 3,885 4,079
Computer Equipment – – – 304 238 238 1,740 671 183
Furniture and Office Equipment 79 433 – 180 180 180 4,680 1,768 1,860
Machinery and Equipment 117 – – – – – 500 525 551
Transport Assets – 607 – 4,000 4,000 4,000 14,700 – –
TOTAL CAPITAL EXPENDITURE - Asset class 67,846 94,732 – 306,210 388,122 388,122 348,674 320,684 339,766
ASSET REGISTER SUMMARY - PPE (WDV) – 3,671,432 3,373,292 2,544,652 2,530,319 2,530,319 – – –
Roads Infrastructure 896,630 896,630 896,630
Storm water Infrastructure 235 235 235
Electrical Infrastructure 2,874 2,874 2,874
Water Supply Infrastructure 2,087,730 3,256,551 1,020,400 1,020,400 1,020,400
Sanitation Infrastructure 1,448,797 605,697 605,697 605,697
Solid Waste Infrastructure
Rail Infrastructure
Coastal Infrastructure
Information and Communication Infrastructure
Infrastructure – 3,536,527 3,256,551 2,525,835 2,525,835 2,525,835 – – –
Community Assets 11,834 11,109
Investment properties 69,702 66,031 10,119
Other Assets
Biological or Cultivated Assets 631 2,214 4,214
Intangible Assets
Computer Equipment 433 1,909 304 304 304
Furniture and Office Equipment 230 1,567 180 180 180
Machinery and Equipment 37,064 8,891 – – –
Transport Assets 15,012 25,020 4,000 4,000 4,000
Land
Zoo's, Marine and Non-biological Animals
TOTAL ASSET REGISTER SUMMARY - PPE (WDV) – 3,671,432 3,373,292 2,544,652 2,530,319 2,530,319 – – –
EXPENDITURE OTHER ITEMS 399,094 412,799 – 401,904 229,230 229,230 299,757 323,958 350,290
Depreciation 334,913 384,709 – 384,824 210,000 210,000 184,257 202,683 222,951
Repairs and Maintenance by Asset Class 64,181 28,090 – 17,080 19,230 19,230 115,500 121,275 127,339
Roads Infrastructure 2,206 3,196 – 2,000 2,000 2,000 – – –
Water Supply Infrastructure 55,949 23,165 – 11,000 12,000 12,000 115,500 121,275 127,339
Infrastructure 58,154 26,361 – 13,000 14,000 14,000 115,500 121,275 127,339
Community Facilities – – – 500 500 500 – – –
Sport and Recreation Facilities – – – – – – – – –
Community Assets – – – 500 500 500 – – –
Operational Buildings – 1,729 – 1,580 2,730 2,730 – – –
Housing – – – – – – – – –
Other Assets – 1,729 – 1,580 2,730 2,730 – – –
Transport Assets 6,027 – – 2,000 2,000 2,000 – – –
TOTAL EXPENDITURE OTHER ITEMS 399,094 412,799 – 401,904 229,230 229,230 299,757 323,958 350,290
Renewal and upgrading of Existing Assets as % of total capex0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Renewal and upgrading of Existing Assets as % of deprecn0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
R&M as a % of PPE 1.7% 0.6% 0.0% 0.7% 0.4% 0.4% 2.2% 2.2% 2.2%
Renewal and upgrading and R&M as a % of PPE 0.0% 1.0% 0.0% 1.0% 1.0% 1.0% 0.0% 0.0% 0.0%
Current Year 2018/192019/20 Medium Term Revenue &
Expenditure Framework
Page | 156
DC38 Ngaka Modiri Molema - Table A10 Basic service delivery measurement
2015/16 2016/17 2017/18
Outcome Outcome OutcomeOriginal
Budget
Adjusted
Budget
Full Year
Forecast
Budget Year
2019/20
Budget Year
+1 2020/21
Budget Year
+2 2021/22
Household service targets 1
Water:
Piped w ater inside dw elling 50,613 50,613 50,613 50,613 50,613 50,613 50,613 50,613 50,613
Piped w ater inside y ard (but not in dw elling) 29,931 30,168 30,168 31,268 31,268 31,268 31,468 31,648 31,808
Using public tap (at least min.serv ice lev el) 2 28,107 28,107 28,107 28,107 28,107 28,107 28,107 28,107 28,107
Other w ater supply (at least min.serv ice lev el) 4 56,961 56,961 56,961 56,961 56,961 56,961 56,961 56,961 56,961
Minimum Service Level and Above sub-total 165,612 165,849 165,849 166,949 166,949 166,949 167,149 167,329 167,489
Using public tap (< min.serv ice lev el) 3 – – – – – – – – –
Other w ater supply (< min.serv ice lev el) 4 39,498 39,498 39,498 39,498 39,498 39,498 39,498 39,498 39,498
No w ater supply 21,045 21,045 21,045 21,045 21,045 21,045 21,045 21,045 21,045
Below Minimum Service Level sub-total 60,543 60,543 60,543 60,543 60,543 60,543 60,543 60,543 60,543
Total number of households 5 226,155 226,392 226,392 227,492 227,492 227,492 227,692 227,872 228,032
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) – – – – – – – – –
Sanitation (free sanitation serv ice to indigent households) – – – – – – – – –
Electricity /other energy (50kw h per indigent household per month) – – – – – – – – –
Refuse (remov ed once a w eek for indigent households) – – – – – – – – –
Cost of Free Basic Services provided - Informal Formal Settlements (R'000) – – – – – – – – –
Total cost of FBS provided – – – – – – – – –
Highest level of free service provided per household
Property rates (R v alue threshold)
Water (kilolitres per household per month)
Sanitation (kilolitres per household per month)
Sanitation (Rand per household per month)
Electricity (kw h per household per month)
Refuse (av erage litres per w eek)
Revenue cost of subsidised services provided (R'000) 9
Property rates (tariff adjustment) ( impermissable values per section 17 of MPRA )
Property rates ex emptions, reductions and rebates and impermissable values in
excess of section 17 of MPRA) – – – – – – – – –
Water (in excess of 6 kilolitres per indigent household per month) – – – – – – – – –
Sanitation (in excess of free sanitation service to indigent households) – – – – – – – – –
Electricity /other energy (in excess of 50 kwh per indigent household per month) – – – – – – – – –
Refuse (in excess of one removal a week for indigent households) – – – – – – – – –
Municipal Housing - rental rebates
Housing - top structure subsidies 6
Other
Total revenue cost of subsidised services provided – – – – – – – – –
Current Year 2018/192019/20 Medium Term Revenue &
Expenditure FrameworkDescription Ref
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2. Part 2 – Supporting Documentation
2.1 Overview of the annual budget process
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.
The Budget Steering Committee consists of the Municipal Manager and senior officials of the
municipality meeting under the chairpersonship of the MMC for Finance.
The primary aims of the Budget Steering Committee are 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.
2.1.1 Budget Process Overview
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 2018) a time schedule that sets out the process
to revise the IDP and prepare the budget. The Mayor tabled in Council the required the IDP and
budget time schedule on 31 August 2018. Key dates applicable to the process were:
Table 22: Time Schedule of Key deadlines for 2019/20 MTREF
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TIME SCHEDULE OF KEY DEADLINES
Mayor to Table in Council 10 Months Prior to Start of Budget Year
Month NGAKA MODIRI MOLEMA DISTRICT MUNICIPALITY Budget Year : 2019/20
Mayor and Council
Administration - Municipality
Jul 2018 Mayor begins planning for next three-year budget in accordance
with co-ordination role of budget process
MFMA s 53
Planning includes review of the previous year’s budget process and
completion of the Budget Evaluation Checklist
Accounting officers and senior officials of municipality begin planning
for next three-year budget
MFMA s 68, 77
Accounting officers and senior officials of municipality review options
and contracts for service delivery
MSA s 76-81
Aug 2018 Mayor tables in Council a time schedule outlining key deadlines for:
preparing, tabling and approving the budget; reviewing the IDP
(as per s 34 of MSA) and budget related policies and c
consultation processes at least 10 months before the start of the
budget year.
MFMA s 21,22, 23;
MSA s 34, Ch 4 as amended
Mayor establishes committees and consultation forums for the
budget process
Sept
2018
Council through the IDP review process determines s strategic
objectives for service delivery & development for next three-year
budgets including review of provincial and national government
sector and strategic plans
Budget office of municipality determine revenue projections and
proposed rate and service charges and drafts initial allocations to
functions and departments for the next financial year after taking into
account strategic objectives
Engages with Provincial and National sector departments on sector
specific programmes for alignment with municipalities plans (schools,
libraries, clinics, water, electricity, roads, etc)
Oct 2018 Accounting officer does initial review of national policies and budget
plans and potential price increases of bulk resources with function and
department officials
MFMA s 35, 36, 42; MTBPS
Nov 2018 Council finalises tariff (rates and service charges) policies for next
financial year
MSA s 74, 75
Accounting officer reviews and drafts initial changes to IDP
MSA s 34
Dec 2018
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Accounting officer and senior officials consolidate and prepare
proposed budget and plans for next financial year taking into account
previous year’s performance as per audited financial statements
Jan 2019 Accounting officer reviews proposed national and provincial allocations
to municipality for incorporation into the draft budget for tabling.
(Proposed national and provincial allocations for three years must be
available by 20 January)
MFMA s 36
Feb 2019 Accounting officer finalises and submits to Mayor proposed budgets
and plans for next three-year budgets taking into account the recent
mid-year review and any corrective measures proposed as part of the
oversight report for the previous years audited financial statements and
annual report
Accounting officer to notify relevant municipalities of projected
allocations for next three budget years 120 days prior to start of budget
year
MFMA s 37(2)
Mar 2019
Mayor tables municipality budget, resolutions, plans, and proposed
revisions to IDP at least 90 days before start of budget year
MFMA s 16, 22, 23, 87; MSA s 34
Accounting officer publishes tabled budget, plans, and proposed
revisions to IDP, invites local community comment and submits to NT,
PT and others as prescribed
MFMA s 22 & 37; MSA Ch 4 as amended
Accounting officer reviews any changes in prices for bulk resources as
communicated by 15 March
MFMA s 42
Apr 2019 Consultation with national and provincial treasuries and finalise
sector plans for water, sanitation, electricity etc
MFMA s 21
Public hearings on the budget, and council debate. Council
consider views of the local community, NT, PT, other provincial
and national organs of state and municipalities. Mayor to be
provided with an opportunity to respond to submissions during
consultation and table amendments for council consideration.
Council to consider approval of budget and plans at least 30 days
before start of budget year.
MFMA s 23, 24; MSA Ch 4 as amended
Accounting officer assists the Mayor in revising budget documentation
in accordance with consultative processes and taking into account the
results from the third quarterly review of the current year
May 2019
Council must approve annual budget by resolution, setting taxes
and tariffs, approving changes to IDP and budget related policies,
Accounting officer assists the Mayor in preparing the final budget
documentation for consideration for approval at least 30 days before
Page | 160
approving measurable performance objectives for revenue by
source and expenditure by vote before start of budget year
MFMA s 16, 24, 26, 53
the start of the budget year taking into account consultative processes
and any other new information of a material nature
Jun 2019
Mayor must approve SDBIP within 28 days after approval of the
budget and ensure that annual performance contracts are
concluded in accordance with s 57(2) of the MSA. Mayor to
ensure that the annual performance agreements are linked to the
measurable performance objectives approved with the budget and
SDBIP. The mayor submits the approved SDBIP and performance
agreements to council, MEC for local government and makes
public within 14 days after approval.
MFMA s 53; MSA s 38-45, 57(2)
Council must finalise a system of delegations.
MFMA s 59, 79, 82; MSA s 59-65
Accounting officer submits to the mayor no later than 14 days after
approval of the budget a draft of the SDBIP and annual performance
agreements required by s 57(1)(b) of the MSA.
MFMA s 69; MSA s 57
Accounting officer of municipality publishes adopted budget and plans
MFMA s 75, 87
Abbreviations: IDP - Integrated Development Plan; MFMA - Local Government: Municipal Finance Management Act, No. 56 of 2003; MSA - Local
Government: Municipal Systems Act, No. 32 of 2000, as amended; MTBPS - National Treasury annual publication, Medium Term Budget and Policy
Statement; NT - National Treasury; PT - Provincial Treasuries; SDBIP - Service Delivery and Budget Implementation Plan
There were no deviations from the key dates set out in the Budget Time Schedule tabled in
Council.
2.1.2 IDP and Service Delivery and Budget Implementation Plan
This is the second review of the IDP as adopted by Council in May 2017. It started in September
2018 after the tabling of the IDP Process Plan and the Budget Time Schedule for the 2019/20
MTREF in August. The district 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 second revision cycle included the following key IDP
processes and deliverables:
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
Page | 161
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 2019/20
MTREF, based on the approved 2018/19 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 2019/20
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 2018/19 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.
2.1.3 Financial Modelling and Key Planning Drivers
As part of the compilation of the 2019/20 MTREF, an 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 2019/20 MTREF:
Global and local economic outlook;
Provincial and National priorities;
Political policy priorities and strategic objectives;
Asset maintenance plan;
Approved 2018/19 MTREF, Mid-year review, adjustments budget and performance against
the SDBIP;
Performance trends;
Cash Flow Management Strategy;
The need for tariff increases versus the ability of the community to pay for services; and
Improved and sustainable service delivery
In addition to the above, the strategic guidance given in National Treasury’s MFMA Circulars, in
particular Circular 93 and 94 has been taken into consideration in the planning and prioritisation
process.
2.1.4 Community Consultation and Stakeholder engagement
Page | 162
Immediately after draft budget is tabled in a municipal council, the municipal manager in
accordance with Chapter 4 of the Systems Act will –
make public the draft budget on the municipality’s website, and hard copies will made
available at customer care offices, municipal notice boards and various libraries.
secondly, the municipality will invite local communities to submit their representations
in with the draft budget for 2019/20;
also allow National Treasury and provincial treasuries and any other organ of state or
local municipalities to make their submission to the 2019/20 draft budget.
As indicated above, a notice was issued to the public for 2019/20 draft budget and IDP review
in accordance with in accordance with section 23 of the MFMA and Municipal System Act. As
results, local municipalities around district were utilised to facilitate consultation process, which
started from 26 February to 13 March 2019. Below, is the schedule for consultative meetings
where key stakeholders (Registered Business forums, Government Sector department,
Government Parastatals, Non-Governmental Organisations, Youth Organisations, Organisations
of People with Special Needs, Religious People, and Designated Interested Groups) were invited.
Table 23: Schedule of 2019/20 draft budget and IDP review meetings for
consultation
Municipality
Date
Venue
Tswaing Local Municipality 26 February 2019 Tswaing Council Chamber
Ramotshere-Moiloa Local Municipality 27 February 2019 Ramotshere-Moiloa Council Chamber
Mahikeng Local Municipality 05 March 2019 Mahikeng Council Chamber
Ditsobotla Local Municipality 06 March 2019
Ratlou Local Municipality 07 March 2019 Ratlou Council Chamber
NMMDM IDP Rep Forum 13 March 2019 NMMDM Council Chamber
2.2 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
Page | 163
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 Ngaka Modiri
Molema District 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 is exists alignment
between national and provincial priorities, policies and strategies and the district to response to
these requirements.
The national and provincial priorities, policies and strategies of importance include amongst others:
Medium-Term Strategic Framework (MTSF) 2014-2019;
National Development Plan Vision 2030;
Strategic Agenda of North West Province;
Nine-Point Economic Plan;
Green Paper on National Strategic Planning of 2009;
Development Facilitation Act of 1995;
Provincial Growth and Development Strategy (GGDS);
National Key Performance Indicators (NKPIs);
Page | 164
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.
Below, are the IDP’s five strategic objectives for the 2019/20 MTREF and further planning
refinements have directly informed the compilation of the draft budget, namely:
Municipal Transformation and Institutional Development
Financial Viability
Good governance and community participation
Local Economic Development
Basic services and infrastructure development
Considering the above discussions, 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.
Page | 165
Table 24: MBRR Table SA4 - Reconciliation between the IDP strategic objectives
and budgeted revenue
Strategic Objective GoalGoal
Code2015/16 2016/17 2017/18
R thousand
Audited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Budget Year
2019/20
Budget Year
+1 2020/21
Budget Year
+2 2021/22
MUNICIPAL
TRANSFORMATION AND
INSTITUTIONAL
DEVELOPMENT
Policy implementation and
prov iding direction leading to
effectiv e serv ice deliv ery
217 851 99,781 94,604 94,604 93,488 102,582 100,219
FINANCIAL VIABILITY Sound Financial Management 516,305 559,256 631,269 231,124 250,574 250,574 164,957 222,467 249,174
GOOD GOVERNANCE AND
COMMUNITY
PARTICIPATION
Effectiv e running of the
institution that promotes high
lev el of ethics and
accountability
317 7,299 191,640 205,061 205,061 215,286 208,424 220,367
LOCAL ECONOMIC
DEVELOPMENT
Contribute to the dev elopment
of the district grow th and
improv ed economic conditions
1,849 1,578 1,124 27,403 23,714 23,714 24,988 22,486 23,891
BASIC SERVICES AND
INFRASTRUCTURE
INVESTMENT
Access to clean drinking
w ater and basic sanitation
serv ices
102,380 109,483 251,889 447,386 599,577 599,577 572,479 599,698 662,880
Allocations to other priorities 2
Total Revenue (excluding capital transfers and contributions) 1 620,851 670,535 892,432 997,334 1,173,529 1,173,529 1,071,198 1,155,658 1,256,531
Current Year 2018/192019/20 Medium Term Revenue &
Expenditure FrameworkRef
Page | 166
Table 25: MBRR Table SA5 - Reconciliation between the IDP strategic objectives and
budgeted operating expenditure
Strategic Objective GoalGoal
Code2015/16 2016/17 2017/18
R thousand
Audited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Budget Year
2019/20
Budget Year
+1 2020/21
Budget Year
+2 2021/22
MUNICIPAL
TRANSFORMATION AND
INSTITUTIONAL
DEVELOPMENT
Policy implementation and
prov iding direction leading to
effectiv e serv ice deliv ery
315,857 309,983 313,843 90,478 85,301 85,301 94,288 102,582 100,219
FINANCIAL VIABILITY Sound Financial Management 353,053 274,697 297,569 418,090 238,379 238,379 228,974 251,028 273,649
GOOD GOVERNANCE AND
COMMUNITY
PARTICIPATION
Effectiv e running of the
institution that promotes high
lev el of ethics and
accountability
35,736 8,468 16,224 191,640 205,061 205,061 217,700 217,251 229,654
LOCAL ECONOMIC
DEVELOPMENT
Contribute to the dev elopment
of the district grow th and
improv ed economic conditions
3,019 1,578 1,124 27,283 23,594 23,594 24,988 22,486 23,891
BASIC SERVICES AND
INFRASTRUCTURE
INVESTMENT
Access to clean drinking
w ater and basic sanitation
serv ices
284,901 47,293 26,239 154,910 228,012 228,012 281,070 302,162 342,230
Allocations to other priorities
Total Expenditure 1 992,566 642,020 654,998 882,402 780,347 780,347 847,020 895,509 969,642
Current Year 2018/192019/20 Medium Term Revenue &
Expenditure FrameworkRef
Page | 167
Table 26: MBRR Table SA7 - Reconciliation between the IDP strategic objectives and
budgeted capital expenditure
Table 27: Supporting Table SA7 Measurable performance objectives and indicators
Strategic Objective Goal 2015/16 2016/17 2017/18 Current Year 2018/19 2019/20 Medium Term Revenue
& Expenditure Framework
R thousand
Audited Outcome
Audited Outcome
Audited Outcome
Original Budget
Adjusted Budget
Full Year
Forecast
Budget Year
2019/20
Budget Year +1 2020/21
Budget Year +2 2021/22
MUNICIPAL
TRANSFORMATION AND
INSTITUTIONAL DEVELOPMENT
Policy implementation
and providing direction leading to
effective service delivery
13,945
75
1,980
12,302
2,437
2,437
13,180
7,430
7,277
FINANCIAL VIABILITY
Sound Financial Management
– – – – – – – – –
GOOD GOVERNANCE AND
COMMUNITY PARTICIPATION
Effective running of the institution that
promotes high level of ethics and accountability
640 620 840 – – – 11,930 1,817 1,907
LOCAL ECONOMIC DEVELOPMENT
Contribute to the development of the district growth and improved economic
conditions
– – – 2,660 2,660 2,660 – – –
BASIC SERVICES AND
INFRASTRUCTURE INVESTMENT
Access to clean drinking water and
basic sanitation services
53,261 85,147 218,528 291,248 383,025 383,025 323,564 311,438 330,582
Total Capital Expenditure 67,846 85,843 221,348 306,210 388,122 388,122 348,674 320,684 339,766
Page | 168
2015/16 2016/17 2017/18
Audited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Budget Year
2019/20
Budget Year
+1 2020/21
Budget Year
+2 2021/22
Vote 1 - vote name
Function 1 - (name)
Sub-function 1 - (Yard Connections)
Number of Yard Connection Installed Number 317 237 600 600 600 500 500 500
Sub-function 2 - (Tankering)
Number of Villages Served with Water Number 119 119 25 25 25 25 25 25
Sub-function 3 - (Water Ralated
Emergency Repairs of Boreholes, Burstpipes, Number of reports 12 12 12 12 12 12 12 12
Function 2 - (Water Service Provision)
Sub-function 1 - (Ground Water
Ground w ater monetaring reports (monthly ) Number of reports 12 12 12 12 12 12 12 12
Sub-function 2 - (name)
Insert measure/s description
Sub-function 3 - (name)
Insert measure/s description
Vote 2 - Public Works and Basic Services
Function 1 - (Roads Constraction and
Sub-function 1 - (KM of existing
Kilimeters of Unpaved Roads Maintained Kilometres 357 135 200 - - 100 120.0 160.0
RRAMS Number of Reports 12 12 12 12 12 12 12.0 12.0
Sub-function 2 - (name)
Insert measure/s description
Sub-function 3 - (name)
Insert measure/s description
Function 2 - (name)
Sub-function 1 - (name)
Insert measure/s description
Sub-function 2 - (name)
Insert measure/s description
Sub-function 3 - (name)
Insert measure/s description
Vote 3 - vote name
Function 1 - (name)
Sub-function 1 - (name)
Insert measure/s description
Sub-function 2 - (name)
Insert measure/s description
Sub-function 3 - (name)
Insert measure/s description
Function 2 - (name)
Sub-function 1 - (name)
Insert measure/s description
Sub-function 2 - (name)
Insert measure/s description
Sub-function 3 - (name)
Insert measure/s description
And so on for the rest of the Votes
Unit of measurementDescription
Current Year 2018/192019/20 Medium Term Revenue &
Expenditure Framework
Page | 169
2.3 Overview of budget-related policies
The district budgeting process is guided and governed by relevant legislative, frameworks,
strategies and related policies. For 2019/20 MTREF, the following list of budget related policies
informed the budget process, namely:
2.3.1 Asset Management Policy
The objectives of this policy of the Municipality are inter alia, is to:
to maximise the service potential of existing assets by ensuring that they are
appropriately used, maintained, safeguarded and that risks are mitigated;
to optimise the life cycle costs of owning and using these assets by seeking cost-
effective options throughout an asset’s life cycle;
to reduce the demand for new assets through optimal use of existing assets and
management of demand through the use of non-asset service delivery options;
to establish clear lines of accountability and responsibility for performance, safe
custody and use of assets within the Municipality; and
to establish sound risk-based internal controls supporting all asset management
practices within the Municipality.
2.3.2 Municipal Budget Policy
In short, the objective of this policy is to ensure the sound and sustainable management
of the preparation, approval and implementation of the municipal budget, in accordance
with the provisions of the Constitution, the Systems Act, Chapter 4 of the MFMA and the
Municipal Budget and Reporting Regulations, 2008.
2.3.3 Cash Management and Investment Policy
The Cash Management and Investment Policy strive to address the following key areas:
to ensure compliance with the relevant legal and statutory requirements relating
to cash management and investments;
to ensure that investment of surplus funds of the Municipality forms part of the
financial system of the Municipality;
to create consistency in that the same procedure is followed in respect of each
investment so as to conform to the requirements of transparency, equitability and
fairness. In each case the preservation and safety of investments is a primary aim;
to promote and ensure the need for investment diversification of the Municipality’s
Page | 170
investment portfolio across acceptable investees permitted types of investments and
investment maturities;
to ensure the liquidity needs of the Municipality are duly discounted and provided for;
to establish a minimum acceptable credit rating and requirements for investments
including:
– a list of approved investment types that may be made, subject to the provisions
of this policy; and
– a list of approved institutions where or through which investments may be
made, subject to the provision of this policy;
to provide measures for ensuring implementation of this policy and internal control
over, investment made as well as procedures for reporting on and monitoring of all
investments made procedure for benchmarking and performance evaluation;
to provide the assignment of roles and functions, any delegation of decision- making
powers including the conditions for the use of investment managers, and their liability
in the event of non-compliance with the provisions of this policy; and
to provide the procedures for the annual review of this policy.
2.3.4 Funding and Reserves Policy
The aim of this policy is to set out the assumptions and methodologies for estimating the
following:
projected billings, collections and all direct revenues;
the provision for revenue that will not be collected;
the funds the Municipality can expect to receive from investments;
the proceeds the Municipality can expect to receive from the transfer or disposal of
assets;
the Municipality’s borrowing requirements; and
the funds to be set aside in reserves.
2.3.5 Policy on Borrowing
The specific purpose of Policy on Borrowing is to:
enable the Municipality to exercise its obligations to ensure sufficient cash resources
to implement its capital programme in the most effective manner;
maintain debt within specified limits;
Page | 171
ensure adequate provision for the sustainable repayment of debt. (4) Manage
interest rate and credit risk exposure;
ensure that all and any occurring of debt by the Municipality are made with great
care, skill, prudence and diligence; and
govern the taking up of short-term and long-term debt according to the legislative
framework.
2.3.6 Supply Chain Management Policy
One of the critical policies within the Municipality is Supply Chain Management Policy. This policy
seeks to give effect to:
to the provisions set out in section 217 of the Constitution, 1996;
to ensure fair, equitable, transparent, competitive and cost effective provision of goods
and services;
to assure the creation of an environment where business can be conducted with
integrity and in a fair, reasonable and accountable manner, this policy will ensure
that the Municipal Manager and all officials of the Municipality involved in supply chain
management activities must act with integrity, accountability, transparency and with
the highest of ethical standards and free of favouritism, nepotism and corruption of
any kind. The officials of the Municipality involved in supply chain management
activities must adhere to the code of ethical standards contained in this policy, together
with the Code of Conduct for Municipal Staff Members as contained in Schedule 2 of
the MSA;
selecting contractors to provide assistance in the provision of municipal services
otherwise than in circumstances where Chapter 8 of the MSA applies; and
to dispose goods that are no longer needed.
2.3.7 Tariff Policy
The district’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 and noted on various dates and consolidated tariffs/rates are
incorporated in the budget document. In addition, it worth to note that all tariffs are increased
by 6 per cent except the new municipal health service tariff and yard connection which will be
now on quotation basis.
Page | 172
2.3.8 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 district’s system of delegations. The Budget
Virement Policy is on the draft stage and it set to be tabled for consideration by Council before
the end of May 2019.
All the above policies were approved in May 2014, except the new Virement Policy which is at
draft stage. Furthermore, these policies are available on the district’s website for public viewing.
2.4 Overview of budget assumptions
2.4.1 External factors
Over the last decade, local government has been receiving the smallest share of the division of
nationally raised revenue because it has significant own revenue-raising powers. However, with
the district municipality own revenue is less that 1%. This is due to the fact that the municipality
is rural in nature and is mostly depended on government grants. Looking at the macroeconomic
performance and projections for 2018-2021, the following realities are observed.
Table 28: Macroeconomic performance and projections 2018-2021 Fiscal year 2018/19 Estimates 2019/20 2020/21
Forecast 2021/22
Consumer Price Inflation (CPI) 4.7% 5.2% 5.4% 5.4%
Real GDP growth 0.7% 1.5% 1.7% 2.1%
As shown above, the economic and revenue outlook for South Africa has deteriorated since the
October 2018 Medium Term Budget Policy Statement (MTBPS). Given these developments, the
2019 budget forces the municipality to scale-down and reprioritise its spending with competing
demands (especially water and maintenance of our aging infrastructure). On the other hand,
the district is heavily affected by drought which has a negative impact on our draft budget.
Therefore, some service delivery priorities where left out in order to priorities communities that
are negatively affected by this drought.
2.4.2 General inflation outlook and its impact on the municipal activities
Page | 173
There are five key factors that have been taken into consideration in the compilation of the
2019/20 MTREF:
The impact of municipal running costs;
The increase in prices for bulk purchase for water and water materials;
The increase in the cost of remuneration. Employee related costs comprise 42% of total
operating expenditure in the 2019/20 MTREF and therefore this increase above inflation
places a disproportionate upward pressure on the expenditure budget.
2.4.3 Impact of national, provincial and local policies
Integration of service delivery between national, provincial and local government is critical to
ensure focused 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:
alleviating poverty by creating jobs through EPWP incentive Grant which is allocated
R 1,235 million;
enhancing skills and capacities for municipal employees;
promoting a safe and healthy environment for local and rural residents;
rural development; and
developing and maintaining of our aging infrastructure.
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.
2.4.4 Ability of the municipality to spend and deliver on the programmes
It is estimated that a spending rate of at least 97 per cent is achieved on operating expenditure
and 98 per cent on the capital programme for the 2019/20 MTREF of which performance has
been factored into the cash flow budget. For 2019/20 MTREF, procurement plans for all goods
and services to be rendered will be tabled to council together with the annual budget. More
importantly, supply chain management (SCM) bid committees will be trained and capacitated in
order to fast-track implementation of SCM processes. Furthermore, both oversight committees
and administrative leadership will be strengthened in order to exercise its own oversight
responsibilities and promote culture of financial and performance management. For capital
Page | 174
budget, all projects will advertised immediately after the approval in May 2019 to allow seamless
implementation of project management over the MTREF.
2.4.5 Salary increases
The collective agreement regarding salaries/wages came into operation on 1 July 2018 and shall
remain in force until 30 June 2021. For the financial 2019/20, all employees covered by the
agreement shall receive an increase based on the projected CPI plus 1, 5% with effect from 1
July 2019.
2.5 Overview of budget funding
2.5.1 Medium-term outlook: operating revenue
The following table is a breakdown of the operating revenue over the medium-term:
Table 29: Sources of operating revenue over the MTREF
R thousand
Budget
Year 2019/20
%
Budget Year +1
2020/21
%
Budget Year +2
2021/22
%
Service charges Transfers recognised- operational Internally generated funds
557 773,335 2,082
0.07 99.66 0.27
668 852,106 2,310
0.08 99.65 0.27
868 933,949 2,546
0.09 99.6 0.27
Total sources of capital funds
775,974
100
855,083
100
937,363
100
The following graph is a breakdown of the operational revenue per main category for the
2019/20 financial year.
Figure 2: Breakdown of operating revenue over the 2019/20 MTREF
Transfers recognised-operational
72%
Other own revenue0, 01%
Transfers recognised- capital
28%
Page | 175
The municipality’s own revenue is built around the following key components:
Sale of water tokens , sewer suction, tender documents revenue; municipal health
service charges, and
Rental of facilities and equipment.
As highlighted above, the Municipality derives most of its operational revenue from transfers
and grants which comes from organs of state and other minor service charges as indicated.
2.5.2 Medium-term outlook: capital revenue
Table 30: Sources of capital revenue over the MTREF
R thousand
Budget
Year 2019/20
%
Budget Year +1
2020/21
%
Budget Year +2
2021/22
%
Transfers recognised- capital Borrowing Internally generated funds
295,564 - 53, 110
85 15.23
320,684 - 19,747
94,20 6
319,557 - 20,209
94.20 6
Total sources of capital funds
348,674
100
320,684
100
339,766
100
Capital grants and receipts equates to 85 per cent of the total funding source which represents
R 295,564 million for the 2019/20 financial year and steadily increase to R 320,684 million over
the MTREF.
Internally generated funds consist of a mixture between own revenue and equitable shares.
Internally generated funds consist of R 53,110 million in 2019/20, R 19,747 million in 2020/21
and R 20,209 million in 2021/22. The Municipality is aware that an equitable share from national
government is meant to fund free basic services. However, the Municipality is intending to
procure tools and equipment (i.e. service trucks) that will assist to fast track service delivery
projects, including water and sanitation projects, fire and rescue services and finally reduce cost
of outsourcing municipal services which are currently main cost drivers to our 2018/19 MTREF
budget.
Page | 176
Table 31: MBRR Table SA 18- Capital transfers and grants receipts
Description Current Year 2018/19 2019/20 Medium Term Revenue &
Expenditure Framework
R thousand Original Budget
Adjusted Budget
Full Year Forecast
Budget Year
2019/20
Budget Year +1 2020/21
Budget Year +2 2021/22
National Government: 295,614 453,288 453,288 302,190 320,120 345,848
Municipal Infrastructure Grant (MIG) 293,074 293,074 293,074 299,499 317,274 342,845
Rural Transport Services and Infrastructure 2,540 2,540 2,540 2,691 2,846 3,003
Regional Bulk Infrastructure – – – – – –
Water Service Infrastructure Grant – 157,674 157,674 – – –
Total Capital Transfers and Grants 295,614 453,288 453,288 302,190 320,120 345,848
2.5.3 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 practice and also improves understandability for councillors and
management. Some specific features include:
Clear separation of receipts and payments within each cash flow category; and
Clear separation of capital and operating receipts from government.
Page | 177
Table 32: MBRR Table A7 – Budget cash flow statement
With the 2018/19 adjustments budget various cost efficiencies and savings had to be realised
to ensure the Municipality could meet its operational expenditure commitments. In addition the
Municipality undertook an extensive review on its spending patterns, which resulted in positive
cash position and payment of long outstanding creditors. Over the mid-term, the municipality
has been consistent with its payment schedule to its suppliers. As it stands, the municipality is
now able to pay creditors within 30 days. These initiatives and interventions have translated
into a positive cash position for the Municipality and it is projected that cash and cash
equivalents on hand will increase to R 200 million by the end of 2018/19 financial year. For the
2019/20 MTREF the budget has been prepared to ensure high levels of cash and cash
equivalents over the medium-term with cash levels anticipated to be R 167,361 million by
2019/20 and steadily increasing to R 179,509 million and R 189,583 million over the MTREF.
Description Ref 2015/16 2016/17 2017/18
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Pre-audit
outcome
Budget Year
2019/20
Budget Year
+1 2020/21
Budget Year
+2 2021/22
CASH FLOW FROM OPERATING ACTIVITIES
Receipts
Property rates – – –
Serv ice charges – – 2,307 534 530 530 557 668 868
Other rev enue 237,094 2,274 8 1,675 42,000 42,000 2,082 2,310 2,546
Gov ernment - operating 1 513,653 545,281 613,966 699,511 698,972 698,972 766,370 832,560 907,269
Gov ernment - capital 1 101,194 109,221 251,889 295,614 453,288 453,288 302,190 320,120 345,848
Interest 3,024 4,784 11,234 – 18,521 18,521 – – –
Div idends – – –
Payments
Suppliers and employ ees (629,814) 641,837 (558,709) (568,936) (592,847) (592,847) (730,363) (795,946) (878,467)
Finance charges – – – (500) (500) (500) (600) (630) (662)
Transfers and Grants 1 (11,663) – (12,831) (18,142) (15,000) (15,000) (25,000) (26,250) (27,563)
NET CASH FROM/(USED) OPERATING ACTIVITIES 213,489 1,303,397 307,864 409,756 604,965 604,965 – 315,236 332,832 349,839
CASH FLOWS FROM INVESTING ACTIVITIES
Receipts
Proceeds on disposal of PPE (1,981) (85,606) – – – – – – – –
Decrease (Increase) in non-current debtors – – – – – – – – – –
Decrease (increase) other non-current receiv ables 29,901 1,751 – – – – – – – –
Decrease (increase) in non-current inv estments – – – – – – – – – –
Payments
Capital assets (229,814) (1,206,091) (221,111) (306,210) (453,288) (453,288) (347,874) (320,684) (339,766)
NET CASH FROM/(USED) INVESTING ACTIVITIES (201,894) (1,289,946) (221,111) (306,210) (453,288) (453,288) – (347,874) (320,684) (339,766)
CASH FLOWS FROM FINANCING ACTIVITIES
Receipts
Short term loans – – – – – – – – – –
Borrow ing long term/refinancing – – – – – – – – – –
Increase (decrease) in consumer deposits – – – – – – – – – –
Payments
Repay ment of borrow ing (7,042) (1,431) – – – – – – –
NET CASH FROM/(USED) FINANCING ACTIVITIES (7,042) (1,431) – – – – – – – –
NET INCREASE/ (DECREASE) IN CASH HELD 4,553 12,020 86,753 103,546 151,677 151,677 – (32,639) 12,148 10,074
Cash/cash equiv alents at the y ear begin: 2 (2,750) 1,803 13,824 100,000 100,576 100,576 200,000 167,361 179,509
Cash/cash equiv alents at the y ear end: 2 1,803 13,823 100,576 203,546 252,253 252,253 – 167,361 179,509 189,583
2019/20 Medium Term Revenue &
Expenditure FrameworkCurrent Year 2018/19
Page | 178
2.5.4 Cash Backed Reserves/Accumulated Surplus Reconciliation
This following table meets 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 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.
Table 33: MBRR Table A8 - Cash backed reserves/accumulated surplus
reconciliation
From the above table it can be seen that the cash and investments available total R
167,361 million in the 2019/20 financial year and progressively increase to R 227,753 million
Description Ref 2015/16 2016/17 2017/18
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Pre-audit
outcome
Budget Year
2019/20
Budget Year
+1 2020/21
Budget Year
+2 2021/22
Cash and investments available
Cash/cash equiv alents at the y ear end 1 1,803 13,823 100,576 203,546 252,253 252,253 – 167,361 179,509 189,583
Other current inv estments > 90 day s – 0 – (103,546) 159,209 159,209 – – – –
Non current assets - Inv estments 1 – – – – – – – – – –
Cash and investments available: 1,803 13,824 100,576 100,000 411,462 411,462 – 167,361 179,509 189,583
Application of cash and investments
Unspent conditional transfers 90,443 20,106 7,078 – 9,463 9,463 – – – –
Unspent borrow ing – – – – – – – – –
Statutory requirements 2
Other w orking capital requirements 3 (13,236,058) 80,983 124,929 99,126 34,931 34,931 – 17,640 18,593 19,615
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: (13,145,615) 101,090 132,007 99,126 44,394 44,394 – 17,640 18,593 19,615
Surplus(shortfall) 13,147,418 (87,266) (31,431) 874 367,068 367,068 – 149,721 160,916 169,967
2019/20 Medium Term Revenue &
Expenditure FrameworkCurrent Year 2018/19
Page | 179
by 2021/22, including the projected cash and cash equivalents as determined in the cash flow
forecast. The following is a breakdown of the application of this funding:
Unspent conditional transfers (grants) are automatically assumed to be an obligation as
the municipality has received government transfers in advance of meeting the
conditions. Ordinarily, unless there are special circumstances, the municipality is
obligated to return unspent conditional grant funds to the national revenue fund at the
end of the financial year. In the past these have been allowed to ‘roll-over’ and be spent
in the ordinary course of business, but this practice has been discontinued. During the
2010/11 financial year the municipality was required to supply National Treasury with a
detailed analysis of the unspent grants as well as an action plan of spending the grants.
As results, the municipality will not have any unspent grants at the end of 2018/19
financial year.
The main purpose of other working capital is to ensure that sufficient funds are available
to meet obligations as they fall due. A key challenge is often the mismatch between the
timing of receipts of funds especially with Municipal Infrastructure Grant for National
government which has delayed payments due to creditors. As results, contractor’s onsite
are faced with the challenge to speed-up service delivery projects.
Against other provisions an amount R 17,640 million has been provided for the 2019/20
financial year and this increase to R 19,615 million by 2021/22.
Table 34: Funding measurement
2.6 Expenditure on grants and reconciliations of unspent funds
Table 35: MBRR SA19- Expenditure on grants and reconciliations of unspent funds
2015/16 2016/17 2017/18
Audited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Pre-audit
outcome
Budget Year
2019/20
Budget Year
+1 2020/21
Budget Year
+2 2021/22
Funding measures
Cash/cash equiv alents at the y ear end - R'000 18(1)b 1 1,803 13,823 100,576 203,546 252,253 252,253 – 167,361 179,509 189,583
Cash + inv estments at the y r end less applications - R'000 18(1)b 2 13,147,418 (87,266) (31,431) 874 367,068 367,068 – 149,721 160,916 169,967
Cash y ear end/monthly employ ee/supplier pay ments 18(1)b 3 0.0 0.4 3.0 5.6 5.7 5.7 – 3.6 3.7 3.6
Surplus/(Deficit) ex cluding depreciation offsets: R'000 18(1) 4 (372,742) 28,238 237,434 114,932 393,182 393,182 – 224,178 260,149 286,888
Serv ice charge rev % change - macro CPIX target ex clusiv e 18(1)a,(2) 5 N.A. (6.0%) 308.3% (24.7%) (6.0%) (6.0%) (106.0%) (1.7%) 14.0% 23.9%
Cash receipts % of Ratepay er & Other rev enue 18(1)a,(2) 6 12588.8% 146.9% 100.0% 100.0% 1925.7% 1925.7% 0.0% 100.0% 100.0% 100.0%
Debt impairment ex pense as a % of total billable rev enue 18(1)a,(2) 7 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Capital pay ments % of capital ex penditure 18(1)c;19 8 338.7% 1405.0% 99.9% 100.0% 116.8% 116.8% 0.0% 100.0% 100.0% 100.0%
Borrow ing receipts % of capital ex penditure (ex cl. transfers) 18(1)c 9 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Grants % of Gov t. legislated/gazetted allocations 18(1)a 10 0.0% 0.0% 0.0%
Current consumer debtors % change - incr(decr) 18(1)a 11 N.A. 4.6% (78.2%) (100.0%) 0.0% 0.0% (100.0%) (100.0%) 0.0% 0.0%
Long term receiv ables % change - incr(decr) 18(1)a 12 N.A. 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
R&M % of Property Plant & Equipment 20(1)(v i) 13 1.7% 0.6% 0.0% 0.7% 0.4% 0.4% 0.0% 2.2% 2.2% 2.2%
Asset renew al % of capital budget 20(1)(v i) 14 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 4.7% 0.0% 0.0%
Description
2019/20 Medium Term Revenue &
Expenditure FrameworkMFMA
sectionRef
Current Year 2018/19
Page | 180
Description Ref 2015/16 2016/17 2017/18
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Budget Year
2019/20
Budget Year
+1 2020/21
Budget Year
+2 2021/22
EXPENDITURE: 1
Operating expenditure of Transfers and Grants
National Government: 513,653 – – 699,511 699,511 699,511 3,565 2,762 3,026
Local Gov ernment Equitable Share 510,260 696,369 696,369 696,369
Finance Management 1,325 1,865 1,865 1,865 2,330 2,762 3,026
Municipal Sy stems Improv ement 524 – – – – – –
Water Serv ices Operating Subsidy – – – – – – –
EPWP Incentiv e 1,545 1,277 1,277 1,277 1,235 – –
–
SETA –
Provincial Government: – – – – – – – – –
SETA
District Municipality: – – – – – – – – –
[insert description]
Other grant providers: – – – – – – – – –
[insert description]
Total operating expenditure of Transfers and Grants: 513,653 – – 699,511 699,511 699,511 3,565 2,762 3,026
Capital expenditure of Transfers and Grants
National Government: 101,194 – – 295,614 453,288 453,288 299,499 317,274 342,845
Municipal Infrastructure Grant (MIG) 99,242 293,074 293,074 293,074 – – –
Rural Transport Serv ices and Infrastructure 1,952 2,540 2,540 2,540 299,499 317,274 342,845
Regional Bulk Infrastructure – – – – –
Water Serv ice Infrastructure Grant 157,674 157,674 – – –
Other capital transfers/grants [insert desc]
Provincial Government: – – – – – – – – –
Other capital transfers/grants [insert
description]
District Municipality: – – – – – – – – –
[insert description]
Other grant providers: – – – – – – – – –
[insert description]
Total capital expenditure of Transfers and Grants 101,194 – – 295,614 453,288 453,288 299,499 317,274 342,845
TOTAL EXPENDITURE OF TRANSFERS AND GRANTS 614,847 – – 995,125 1,152,799 1,152,799 303,064 320,036 345,871
Current Year 2018/192019/20 Medium Term Revenue &
Expenditure Framework
Page | 181
Table 36: MBRR SA 20 - Reconciliation between of transfers, grant receipts and unspent
funds
Description Ref 2015/16 2016/17 2017/18
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Budget Year
2019/20
Budget Year
+1 2020/21
Budget Year
+2 2021/22
Operating transfers and grants: 1,3
National Government:
Balance unspent at beginning of the y ear 2,179 2,179
Current y ear receipts 2,759 2,759
Conditions met - transferred to revenue – – – – 1,712 1,712 – – –
Conditions still to be met - transferred to liabilities 3,225 3,225
Provincial Government:
Balance unspent at beginning of the y ear
Current y ear receipts
Conditions met - transferred to revenue – – – – – – – – –
Conditions still to be met - transferred to liabilities
District Municipality:
Balance unspent at beginning of the y ear
Current y ear receipts
Conditions met - transferred to revenue – – – – – – – – –
Conditions still to be met - transferred to liabilities
Other grant providers:
Balance unspent at beginning of the y ear
Current y ear receipts
Conditions met - transferred to revenue – – – – – – – – –
Conditions still to be met - transferred to liabilities
Total operating transfers and grants revenue – – – – 1,712 1,712 – – –
Total operating transfers and grants - CTBM 2 – – – – 3,225 3,225 – – –
Capital transfers and grants: 1,3
National Government:
Balance unspent at beginning of the y ear
Current y ear receipts
Conditions met - transferred to revenue – – – – – – – – –
Conditions still to be met - transferred to liabilities
Provincial Government:
Balance unspent at beginning of the y ear
Current y ear receipts
Conditions met - transferred to revenue – – – – – – – – –
Conditions still to be met - transferred to liabilities
District Municipality:
Balance unspent at beginning of the y ear
Current y ear receipts
Conditions met - transferred to revenue – – – – – – – – –
Conditions still to be met - transferred to liabilities
Other grant providers:
Balance unspent at beginning of the y ear
Current y ear receipts
Conditions met - transferred to revenue – – – – – – – – –
Conditions still to be met - transferred to liabilities
Total capital transfers and grants revenue – – – – – – – – –
Total capital transfers and grants - CTBM 2 – – – – – – – – –
TOTAL TRANSFERS AND GRANTS REVENUE – – – – 1,712 1,712 – – –
TOTAL TRANSFERS AND GRANTS - CTBM – – – – 3,225 3,225 – – –
Current Year 2018/192019/20 Medium Term Revenue &
Expenditure Framework
Page | 182
2.7 Allocations and grants made by the municipality
The disclosure on allocations or grants made by the municipality must provide particulars of any
allocations and grants by the municipality to the municipality -
a) other municipalities; and
b) any municipal entities and other external mechanism assisting the municipality in the
exercise of its function or powers.
In addition, White paper on Local Government, 1998 identified the following four key role that
district municipalities should fulfill which includes, but not limited to:
a) District integrated development planning as a statutory mandate of all district
governments;
b) To serve as infrastructural development agents, involving planning and developing bulk
infrastructure in non-metro municipalities; and
c) The provision of technical assistance to local municipalities including facilitation the
sharing of specialised capacity and equipment between municipalities, assisting in the
development of cooperative relations between municipalities, assistance in the
preparation of the budgets, consolidated municipal infrastructure programme
applications, tenders, and drafting by-laws.
For 2019/20 MTREF, transfers and grants made by the municipality amounts to R 20 million and
R 26,250 million and R 27,563 million for the outer years.
Table 37: Table SA21 Cash Transfers and grants made by the municipality
Description Current Year 2018/19 2019/20 Medium Term Revenue &
Expenditure Framework
R thousand Original Budget
Adjusted Budget
Full Year Forecast
Budget Year
2019/20
Budget Year +1 2020/21
Budget Year +2 2021/22
Cash Transfers to other municipalities
Mafikeng Local Municipality 3,000 3,000 3,000 3,000 5,250 5,513
Ditsobotla Local Municipality 3,000 3,000 3,000 3,000 5,250 5,513
Ramotshere Moiloa Local Municipality 3,000 3,000 3,000 3,000 5,250 5,513
Ratlou Local Municipality 3,000 3,000 3,000 3,000 5,250 5,513
Tswaing Local Municipality 3,000 3,000 3,000 3,000 5,250 5,513
Total Cash Transfers To Municipalities: 15,000 15,000 15,000 15,000 26,250 27,563
As part of the 2019/20 MTREF, cash transfers and grants made by the municipality remains
R 15 million as compared to 2018/19 adjustment budget.
Page | 183
Table 38: Table SA21 No-Cash Transfers and grants made by the municipality
Description Current Year 2018/19 2019/20 Medium Term Revenue &
Expenditure Framework
R thousand Original Budget
Adjusted Budget
Full Year Forecast
Budget Year
2019/20
Budget Year +1 2020/21
Budget Year +2 2021/22
Non-Cash Transfers to other municipalities
Mafikeng Local Municipality - - - 1,000 - -
Ditsobotla Local Municipality - - - 1,000 - -
Ramotshere Moiloa Local Municipality - - - 1,000 - -
Ratlou Local Municipality - - - 1,000 - -
Tswaing Local Municipality - - - 1,000 - -
Total Cash Transfers To Municipalities: - - - 5,000 - -
As indicated above, the forecasted non-cash transfers and grants made by the municipality for
2019/20 MTREF is R 5 million. The purpose of this transfer is to provide technical assistance to
local municipalities including sharing of the specialised capacity and equipment between
municipalities.
Page | 184
2.8 Councillors and employees benefits
Table 39: MBRR SA22 - Summary of Councillor and staff benefits
Summary of Employee and Councillor
remunerationRef 2015/16 2016/17 2017/18
R thousandAudited
Outcome
Audited
Outcome
Audited
Outcome
Original
Budget
Adjusted
Budget
Full Year
Forecast
Budget Year
2019/20
Budget Year
+1 2020/21
Budget Year
+2 2021/22
1 A B C D E F G H I
Councillors (Political Office Bearers plus Other)
Basic Salaries and Wages 10,144 8,003 9,689 6,126 6,126 6,126 6,126 6,493 6,883
Pension and UIF Contributions – 188 187 3,688 3,688 3,688 3,688 3,910 4,144
Medical Aid Contributions – – – – – – – – –
Motor Vehicle Allow ance – – – – – – – – –
Cellphone Allow ance – – – – – – – – –
Housing Allow ances – – – – – – – – –
Other benefits and allow ances 3,107 277 277 2,292 2,292 2,292 2,292 2,429 2,575
Sub Total - Councillors 13,251 8,468 10,153 12,106 12,106 12,106 12,106 12,832 13,602
% increase 4 (36.1%) 19.9% 19.2% – – – 6.0% 6.0%
Senior Managers of the Municipality 2
Basic Salaries and Wages 1,834 – – 4,552 4,552 4,552 6,725 6,725 6,725
Pension and UIF Contributions 323 – – 3,522 3,522 3,522 749 749 749
Medical Aid Contributions – – – – – – 67 67 67
Ov ertime – – – – – – – – –
Performance Bonus – – – 1,062 1,062 1,062 36 36 36
Motor Vehicle Allow ance 3 192 – – – – – 791 791 791
Cellphone Allow ance 3 42 – – – – – 138 138 138
Housing Allow ances 3 168 – – – – – 762 762 762
Other benefits and allow ances 3 – – – – – – 56 56 56
Pay ments in lieu of leav e – – – 130 130 130 – – –
Long serv ice aw ards – – –
Post-retirement benefit obligations 6
Sub Total - Senior Managers of Municipality 2,559 – – 9,265 9,265 9,265 9,323 9,323 9,323
% increase 4 (100.0%) – – – – 0.6% – –
Other Municipal Staff
Basic Salaries and Wages 184,127 181,894 187,876 187,701 187,701 187,701 211,129 225,650 241,938
Pension and UIF Contributions 1,002 1,247 1,310 36,517 36,517 36,517 45,467 48,465 51,820
Medical Aid Contributions 16,163 15,579 26,089 35,723 35,723 35,723 35,722 35,722 35,722
Ov ertime 7,898 19,371 22,298 6,661 6,661 6,661 17,734 17,734 17,734
Performance Bonus – – – – – – – –
Motor Vehicle Allow ance 3 12,839 – 11,751 11,751 11,751 13,242 13,242 13,242
Cellphone Allow ance 3 46 5,367 1,284 458 458 458 1,105 1,105 1,105
Housing Allow ances 3 455 514 774 561 561 561 4,510 4,510 4,510
Other benefits and allow ances 3 61,620 66,706 75,697 27,520 27,520 27,520 14,898 15,514 16,242
Pay ments in lieu of leav e – 1,544 – 5,908 5,908 5,908 – – –
Long serv ice aw ards 2,985 8,982 (7,593) 985 985 985 2,218 2,244 2,551
Post-retirement benefit obligations 6 5,025 8,285 2,770 3,796 3,796 3,796 – –
Sub Total - Other Municipal Staff 292,160 309,490 310,504 317,582 317,582 317,582 346,025 364,187 384,865
% increase 4 5.9% 0.3% 2.3% – – 9.0% 5.2% 5.7%
Total Parent Municipality 307,971 317,958 320,657 338,954 338,954 338,954 367,454 386,342 407,790
Current Year 2018/192019/20 Medium Term Revenue &
Expenditure Framework
Page | 185
Table 40: MBRR SA23 - Salaries, allowances and benefits for Councillors / senior managers
Disclosure of Salaries, Allowances & Benefits 1. RefContribution
In-kind
benefits
Total
Package
Rand per annum 1. 2.
Councillors 3
Speaker 4 505,368 80,859 180,127 766,354
Chief Whip 473,783 75,805 171,645 721,233
Ex ecutiv e May or 625,831 100,133 212,480 938,445
Deputy Ex ecutiv e May or – – – –
Ex ecutiv e Committee 4,264,049 682,248 1,544,802 6,491,099
Total for all other councillors 1,874,158 151,043 1,163,669 3,188,870
Total Councillors 8 – 7,743,189 1,090,088 3,272,723 12,106,000
Senior Managers of the Municipality 5
Municipal Manager (MM) 898,132 172,553 533,209 209,564 1,813,459
Chief Finance Officer 734,179 141,408 455,052 171,308 1,501,948
Corporate Serv ices 734,179 141,408 455,052 171,308 1,501,948
Dev elopment and Tow n Planning Serv ices 734,179 141,408 455,052 171,308 1,501,948
Public Works and Basic Serv ices (Technical Serv ices) 734,179 141,408 455,052 171,308 1,501,948
Community Serv ices 734,179 141,408 455,052 171,308 1,501,948
List of each offical with packages >= senior manager
–
–
–
–
–
–
–
–
–
–
–
–
–
Total Senior Managers of the Municipality 8,10 – 4,569,028 879,592 2,808,471 1,066,107 9,323,198
A Heading for Each Entity 6,7
List each member of board by designation
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Total for municipal entities 8,10 – – – – – –
TOTAL COST OF COUNCILLOR, DIRECTOR and
EXECUTIVE REMUNERATION10 – 12,312,217 1,969,681 6,081,194 1,066,107 21,429,198
No.
AllowancesSalary Performance
Bonuses
Page | 186
Table 41: MBRR SA24 – Summary of personnel numbers
Summary of Personnel Numbers Ref
Number 1,2 PositionsPermanent
employees
Contract
employeesPositions
Permanent
employees
Contract
employeesPositions
Permanent
employees
Contract
employees
Municipal Council and Boards of Municipal Entities
Councillors (Political Office Bearers plus Other Councillors) – – – – – – – – –
Board Members of municipal entities 4 – – – – – – – – –
Municipal employees 5 – – – – – – – – –
Municipal Manager and Senior Managers 3 6 – 6 6 – 6 6 – 6
Other Managers 7 112 90 – 112 90 – 112 90 –
Professionals 100 100 – 76 46 – 76 46 –
Finance 15 15 – 40 35 – 40 35 –
Spatial/town planning 24 24 – 24 2 – 24 2 –
Information Technology 3 3 – 2 1 – 2 1 –
Roads – – – 6 – – 6 – –
Electricity – – – – – – – – –
Water 4 4 – 4 4 – 4 4 –
Sanitation – – – – 2 – – 2 –
Refuse – – – – 2 – – 2 –
Other 54 54 – – – – – – –
Technicians 28 28 – 32 15 3 32 15 3
Finance – – – – – – – – –
Spatial/town planning 2 2 – 5 2 – 5 2 –
Information Technology – – – 2 4 – 2 4 –
Roads 3 3 – 3 – – 3 – –
Electricity – – – – – – – – –
Water 17 17 – 11 2 – 11 2 –
Sanitation – – – 5 2 3 5 2 3
Refuse – – – – – – – – –
Other 6 6 – 6 5 – 6 5 –
Clerks (Clerical and administrativ e) 121 113 8 121 60 – 121 60 –
Serv ice and sales w orkers 108 101 7 108 265 – 108 265 –
Skilled agricultural and fishery w orkers – – – – – – – – –
Craft and related trades – – – – – – – – –
Plant and Machine Operators 46 46 – 46 26 – 46 26 –
Elementary Occupations 72 72 – 72 209 – 72 209 –
TOTAL PERSONNEL NUMBERS 9 593 550 21 573 711 9 573 711 9
% increase (3.4%) 29.3% (57.1%) – – –
Total municipal employees headcount 6, 10
Finance personnel headcount 8, 10
Human Resources personnel headcount 8, 10
Current Year 2018/19 Budget Year 2019/202017/18
Page | 187
2.8 Monthly targets for revenue, expenditure and cash flow
Table 42: Supporting Table SA 26 Budgeted monthly revenue and expenditure
DC38 Ngaka Modiri Molema - Supporting Table SA25 Budgeted monthly revenue and expenditure
Description Ref
R thousand July August Sept. October November December January February March April May JuneBudget Year
2019/20
Budget Year
+1 2020/21
Budget Year
+2 2021/22
Revenue By Source
Property rates – – – –
Serv ice charges - electricity rev enue – – – –
Serv ice charges - w ater rev enue 38 55 19 40 13 38 50 19 55 65 10 49 450 550 750
Serv ice charges - sanitation rev enue 9 11 5 21 10 16 4 8 7 10 3 3 107 118 118
Serv ice charges - refuse rev enue – – – – – – – – – – – – – – –
Rental of facilities and equipment 17 19 17 21 17 18 18 20 20 17 21 17 218 221 223
Interest earned - ex ternal inv estments – – – – – – – – – – – – – – –
Interest earned - outstanding debtors – – – – – – – – – – – – – – –
Div idends receiv ed – – – – – – – – – – – – – – –
Fines, penalties and forfeits – – – – – – – – – – – – – – –
Licences and permits – – – – – – – – – – – – – – –
Agency serv ices – – – – – – – – – – – – – – –
Transfers and subsidies 312,087 2,824 – – – 228,842 371 – 229,212 – – – 773,335 852,106 933,949
Other rev enue 155 190 220 250 300 100 90 100 30 65 90 273 1,863 2,089 2,323
Gains on disposal of PPE – – – – – – – – – – – – – – –
Total Revenue (excluding capital transfers and contributions)312,306 3,099 261 332 340 229,013 533 147 229,324 157 124 341 775,974 855,083 937,363
Expenditure By Type
Employ ee related costs 27,332 27,332 27,332 27,332 54,663 27,332 27,332 27,332 27,332 27,332 27,332 27,332 355,312 373,510 394,188
Remuneration of councillors 931 931 931 931 931 1,862 931 931 931 931 931 931 12,106 12,832 13,602
Debt impairment – – – – – – – – – – – – – – –
Depreciation & asset impairment – – – – – – – – – – – 184,257 184,257 202,683 222,951
Finance charges 50 50 50 50 50 50 50 50 50 50 50 50 600 630 662
Bulk purchases 3,000 – – 3,000 – 3,000 – – 3,000 – – 6,000 18,000 21,600 24,000
Other materials 9,775 9,775 9,775 9,775 9,775 9,775 9,775 9,775 9,775 9,775 9,775 7,976 115,500 121,275 127,339
Contracted serv ices 6,261 6,261 6,261 6,261 6,261 6,261 6,261 6,261 6,261 6,261 6,261 8,958 77,823 81,043 82,220
Transfers and subsidies 1,000 – – – 10,000 – – – 5,000 – – 4,000 20,000 26,250 27,563
Other ex penditure 5,285 5,285 5,285 5,285 5,285 5,285 5,285 5,285 5,285 5,285 5,285 5,285 63,421 55,686 77,119
Loss on disposal of PPE – – – – – – – – – – – – – –
Total Expenditure 53,634 49,634 49,634 52,634 86,965 53,565 49,634 49,634 57,634 49,634 49,634 244,789 847,020 895,509 969,642
Surplus/(Deficit) 258,673 (46,535) (49,373) (52,302) (86,626) 175,448 (49,101) (49,487) 171,691 (49,477) (49,510) (244,447) (71,046) (40,425) (32,280)
Transfers and subsidies - capital (monetary
allocations) (National / Prov incial and District) 112,834 1,346 – – 89,850 – – 1,346 89,850 – – – 295,225 300,574 319,168
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) – – – –
Surplus/(Deficit) after capital transfers &
contributions371,507 (45,189) (49,373) (52,302) 3,224 175,448 (49,101) (48,141) 261,540 (49,477) (49,510) (244,447) 224,178 260,149 286,888
Tax ation – – – –
Attributable to minorities – – – –
Share of surplus/ (deficit) of associate – – – –
Surplus/(Deficit) 1 371,507 (45,189) (49,373) (52,302) 3,224 175,448 (49,101) (48,141) 261,540 (49,477) (49,510) (244,447) 224,178 260,149 286,888
Budget Year 2019/20Medium Term Revenue and Expenditure
Framework
NGAKA MODIRI MOLEMA DISTRICT MUNICIPALITY
Page | 188
DC38 Ngaka Modiri Molema - Supporting Table SA26 Budgeted monthly revenue and expenditure (municipal vote)
Description Ref
R thousand July August Sept. October November December January February March April May JuneBudget Year
2019/20
Budget Year
+1 2020/21
Budget Year
+2 2021/22
Revenue by Vote
Vote 1 - Ex ecutiv e and Council 14,155 8,493 11,324 – – – 33,972 35,671 37,666
Vote 2 - Municipal Manager 6,379 3,827 5,103 – – – 15,308 14,625 15,445
Vote 3 - Finance, Economy & Enterprise Dev elopment 77,098 2,824 – – – 56,444 371 – 28,220 – – (0) 164,957 222,467 249,174
Vote 4 - Corporate Serv ices 38,953 – – – – 23,372 31,163 – – – 93,488 102,582 100,219
Vote 5 - Dev elopment & Tow n Planning Serv ices 10,412 – – – – 6,247 – – 8,329 – – – 24,988 22,486 23,891
Vote 6 - Community Serv ices 69,169 41,501 55,335 – – – 166,006 158,129 167,256
Vote 7 - Public Works & Basic Serv ices 208,975 1,346 – – 90,189 89,128 – 1,346 178,806 – – 2,690 572,479 599,698 662,880
Vote 8 - Internal Audit – – – –
Vote 9 - [NAME OF VOTE 9] – – – –
Vote 10 - [NAME OF VOTE 10] – – – –
Vote 11 - [NAME OF VOTE 11] – – – –
Vote 12 - [NAME OF VOTE 12] – – – –
Vote 13 - [NAME OF VOTE 13] – – – –
Vote 14 - [NAME OF VOTE 14] – – – –
Vote 15 - [NAME OF VOTE 15] – – – –
Total Revenue by Vote 425,140 4,170 – – 90,189 229,013 371 1,346 318,281 – – 2,690 1,071,198 1,155,658 1,256,531
Expenditure by Vote to be appropriated
Vote 1 - Ex ecutiv e and Council 2,831 2,831 2,831 2,831 2,831 2,831 2,831 2,831 2,831 2,831 2,831 2,831 33,972 35,671 37,666
Vote 2 - Municipal Manager 1,276 1,276 1,276 1,276 1,276 1,276 1,276 1,276 1,276 1,276 1,276 1,276 15,308 14,625 15,445
Vote 3 - Finance, Economy & Enterprise Dev elopment 3,726 3,726 3,726 3,726 3,726 3,726 3,726 3,726 3,726 3,726 3,726 187,984 228,974 251,028 273,649
Vote 4 - Corporate Serv ices 7,857 7,857 7,857 7,857 7,857 7,857 7,857 7,857 7,857 7,857 7,857 7,857 94,288 102,582 100,219
Vote 5 - Dev elopment & Tow n Planning Serv ices 2,082 2,082 2,082 2,082 2,082 2,082 2,082 2,082 2,082 2,082 2,082 2,082 24,988 22,486 23,891
Vote 6 - Community Serv ices 13,334 13,334 13,334 13,334 13,334 13,334 13,334 13,334 13,334 13,334 13,334 13,334 160,006 158,129 167,256
Vote 7 - Public Works & Basic Serv ices 22,923 22,923 22,923 22,923 22,923 22,923 22,923 22,923 22,923 22,923 22,923 28,923 281,070 302,162 342,230
Vote 8 - Internal Audit 701 701 701 701 701 701 701 701 701 701 701 701 8,413 8,826 9,287
Vote 9 - [NAME OF VOTE 9] – – – –
Vote 10 - [NAME OF VOTE 10] – – – –
Vote 11 - [NAME OF VOTE 11] – – – –
Vote 12 - [NAME OF VOTE 12] – – – –
Vote 13 - [NAME OF VOTE 13] – – – –
Vote 14 - [NAME OF VOTE 14] – – – –
Vote 15 - [NAME OF VOTE 15] – – – –
Total Expenditure by Vote 54,730 54,730 54,730 54,730 54,730 54,730 54,730 54,730 54,730 54,730 54,730 244,987 847,020 895,509 969,642
Surplus/(Deficit) before assoc. 370,410 (50,561) (54,730) (54,730) 35,459 174,282 (54,360) (53,385) 263,551 (54,730) (54,730) (242,297) 224,178 260,149 286,888
Tax ation – – – –
Attributable to minorities – – – –
Share of surplus/ (deficit) of associate – – – –
Surplus/(Deficit) 1 370,410 (50,561) (54,730) (54,730) 35,459 174,282 (54,360) (53,385) 263,551 (54,730) (54,730) (242,297) 224,178 260,149 286,888
Budget Year 2019/20Medium Term Revenue and Expenditure
Framework
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DC38 Ngaka Modiri Molema - Supporting Table SA27 Budgeted monthly revenue and expenditure (functional classification)
Description Ref
R thousand July August Sept. October November December January February March April May JuneBudget Year
2019/20
Budget Year
+1 2020/21
Budget Year
+2 2021/22
Revenue - Functional
Governance and administration 136,585 2,824 – – – 92,136 371 – 75,810 – – (0) 307,725 375,345 402,504
Ex ecutiv e and council 20,534 – – – – 12,320 – – 16,427 – – – 49,281 50,296 53,111
Finance and administration 116,051 2,824 – – – 79,816 371 – 59,383 – – (0) 258,444 325,050 349,393
Internal audit – – – –
Community and public safety 55,335 – – – – 49,096 – – 61,575 – – 0 166,006 158,129 167,256
Community and social serv ices 3,485 – – – – 3,485 – – 3,485 – – – 10,455 10,654 11,583
Sport and recreation – – – – – – – – – – – – – –
Public safety 47,741 – – – – 41,501 – – 53,981 – – – 143,223 134,450 141,938
Housing – – – – – – – – – – – – – –
Health 4,109 – – – – 4,109 – – 4,109 – – 0 12,328 13,024 13,734
Economic and environmental services 10,412 1,346 – – – 6,247 – 1,346 8,329 – – – 27,679 25,332 26,894
Planning and dev elopment 10,412 – – – – 6,247 – – 8,329 – – – 24,988 22,486 23,891
Road transport – 1,346 – – – – – 1,346 – – – – 2,691 2,846 3,003
Env ironmental protection – – – – – – – – – – – – – – –
Trading services 208,975 – – – 182,007 – – – 178,806 – – 0 569,788 596,852 659,877
Energy sources – – – – – – – – – – – – – – –
Water management 164,858 – – – 137,890 – – – 134,690 – – – 437,438 556,852 505,877
Waste w ater management 44,117 – – – 44,117 – – – 44,117 – – 0 132,350 40,000 154,000
Waste management – – – –
Other – – – –
Total Revenue - Functional 411,306 4,170 – – 182,007 147,479 371 1,346 324,520 – – 0 1,071,198 1,155,658 1,256,531 4,170 – – 182,007 169,531 371 1,346 352,762 – –
Expenditure - Functional
Governance and administration 31,746 31,746 31,746 31,746 31,746 31,746 31,746 31,746 31,746 31,746 31,746 31,746 380,956 412,732 436,266
Ex ecutiv e and council 4,107 4,107 4,107 4,107 4,107 4,107 4,107 4,107 4,107 4,107 4,107 4,107 49,281 50,296 53,111
Finance and administration 26,939 26,939 26,939 26,939 26,939 26,939 26,939 26,939 26,939 26,939 26,939 26,939 323,262 353,610 373,868
Internal audit 701 701 701 701 701 701 701 701 701 701 701 701 8,413 8,826 9,287
Community and public safety 13,334 12,463 12,463 12,463 12,463 12,463 12,463 12,463 12,463 12,463 22,917 11,591 160,006 158,129 167,256
Community and social serv ices 871 – – – – – – – – – 10,455 (871) 10,455 10,654 11,583
Sport and recreation – – – – – – – – – – – – – – –
Public safety 11,435 11,435 11,435 11,435 11,435 11,435 11,435 11,435 11,435 11,435 11,435 11,435 137,223 134,450 141,938
Housing – – – – – – – – – – – – – – –
Health 1,027 1,027 1,027 1,027 1,027 1,027 1,027 1,027 1,027 1,027 1,027 1,027 12,328 13,024 13,734
Economic and environmental services 2,513 2,513 2,513 2,513 2,513 2,513 2,513 2,513 2,513 2,513 2,513 2,513 30,153 27,910 29,606
Planning and dev elopment 2,082 2,082 2,082 2,082 2,082 2,082 2,082 2,082 2,082 2,082 2,082 2,082 24,988 22,486 23,891
Road transport 430 430 430 430 430 430 430 430 430 430 430 430 5,164 5,425 5,715
Env ironmental protection – – – – – – – – – – – – – – –
Trading services 22,492 22,492 22,492 22,492 22,492 22,492 22,492 22,492 22,492 22,492 22,492 28,492 275,906 296,738 336,515
Energy sources – – – – – – – – – – – – – – –
Water management 22,492 22,492 22,492 22,492 22,492 22,492 22,492 22,492 22,492 22,492 22,492 28,492 275,906 296,738 336,515
Waste w ater management – – – – – – – – – – – – – – –
Waste management – – – – – – – – – – – – – – –
Other – – – – – – – – – – – – – – –
Total Expenditure - Functional 70,085 69,214 69,214 69,214 69,214 69,214 69,214 69,214 69,214 69,214 79,668 74,343 847,020 895,509 969,642
Surplus/(Deficit) before assoc. 341,221 (65,044) (69,214) (69,214) 112,793 78,265 (68,843) (67,868) 255,307 (69,214) (79,668) (74,343) 224,178 260,149 286,888
Share of surplus/ (deficit) of associate – – – –
Surplus/(Deficit) 1 341,221 (65,044) (69,214) (69,214) 112,793 78,265 (68,843) (67,868) 255,307 (69,214) (79,668) (74,343) 224,178 260,149 286,888
Budget Year 2019/20Medium Term Revenue and Expenditure
Framework
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DC38 Ngaka Modiri Molema - Supporting Table SA28 Budgeted monthly capital expenditure (municipal vote)
Description Ref
R thousand July August Sept. October Nov. Dec. January Feb. March April May JuneBudget Year
2019/20
Budget Year
+1 2020/21
Budget Year
+2 2021/22
Multi-year expenditure to be appropriated 1
Vote 1 - Ex ecutiv e and Council – – – –
Vote 2 - Municipal Manager – – – –
Vote 3 - Finance, Economy & Enterprise Dev elopment – – – –
Vote 4 - Corporate Serv ices – – – –
Vote 5 - Dev elopment & Tow n Planning Serv ices – – – –
Vote 6 - Community Serv ices – – – –
Vote 7 - Public Works & Basic Serv ices 13,748 13,748 13,748 13,748 13,748 13,748 13,748 13,748 13,748 13,748 13,748 (51,976) 99,250 245,728 216,165
Vote 8 - Internal Audit – – – –
Vote 9 - [NAME OF VOTE 9] – – – –
Vote 10 - [NAME OF VOTE 10] – – – –
Vote 11 - [NAME OF VOTE 11] – – – –
Vote 12 - [NAME OF VOTE 12] – – – –
Vote 13 - [NAME OF VOTE 13] – – – –
Vote 14 - [NAME OF VOTE 14] – – – –
Vote 15 - [NAME OF VOTE 15] – – – –
Capital multi-year expenditure sub-total 2 13,748 13,748 13,748 13,748 13,748 13,748 13,748 13,748 13,748 13,748 13,748 (51,976) 99,250 245,728 216,165
Single-year expenditure to be appropriated
Vote 1 - Ex ecutiv e and Council – – – –
Vote 2 - Municipal Manager 48 48 48 48 48 48 48 48 48 48 48 48 580 – –
Vote 3 - Finance, Economy & Enterprise Dev elopment 175 175 175 175 175 175 175 175 175 175 175 175 2,100 2,205 2,315
Vote 4 - Corporate Serv ices 875 875 875 875 875 875 875 875 875 875 875 875 10,500 5,225 4,961
Vote 5 - Dev elopment & Tow n Planning Serv ices – – – – – – – – – – – – – – –
Vote 6 - Community Serv ices 994 994 994 994 994 994 994 994 994 994 994 994 11,930 1,817 1,907
Vote 7 - Public Works & Basic Serv ices 13,216 13,216 13,216 13,216 13,216 13,216 13,216 13,216 13,216 13,216 13,216 78,139 223,514 65,709 114,417
Vote 8 - Internal Audit – – – –
Vote 9 - [NAME OF VOTE 9] – – – –
Vote 10 - [NAME OF VOTE 10] – – – –
Vote 11 - [NAME OF VOTE 11] – – – –
Vote 12 - [NAME OF VOTE 12] – – – –
Vote 13 - [NAME OF VOTE 13] – – – –
Vote 14 - [NAME OF VOTE 14] – – – –
Vote 15 - [NAME OF VOTE 15] – – – –
Capital single-year expenditure sub-total 2 15,308 15,308 15,308 15,308 15,308 15,308 15,308 15,308 15,308 15,308 15,308 80,232 248,624 74,956 123,601
Total Capital Expenditure 2 29,056 29,056 29,056 29,056 29,056 29,056 29,056 29,056 29,056 29,056 29,056 28,256 347,874 320,684 339,766
Budget Year 2019/20Medium Term Revenue and Expenditure
Framework
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DC38 Ngaka Modiri Molema - 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
2019/20
Budget Year
+1 2020/21
Budget Year
+2 2021/22
Capital Expenditure - Functional 1
Governance and administration 1,098 1,098 1,098 1,098 1,098 1,098 1,098 1,098 1,098 1,098 1,098 1,098 13,180 7,430 7,277
Ex ecutiv e and council – – – – – – – – – – – – – – –
Finance and administration 1,050 1,050 1,050 1,050 1,050 1,050 1,050 1,050 1,050 1,050 1,050 1,050 12,600 7,430 7,277
Internal audit 48 48 48 48 48 48 48 48 48 48 48 48 580 – –
Community and public safety 994 994 994 994 994 994 994 994 994 994 994 994 11,930 1,817 1,907
Community and social serv ices 103 103 103 103 103 103 103 103 103 103 103 103 1,230 1,292 1,356
Sport and recreation – – – – – – – – – – – – – – –
Public safety 850 850 850 850 850 850 850 850 850 850 850 850 10,200 – –
Housing – – – – – – – – – – – – – – –
Health 42 42 42 42 42 42 42 42 42 42 42 42 500 525 551
Economic and environmental services – 800 – 760 – – 900 – – 231 – – 2,691 2,846 3,003
Planning and dev elopment – – – –
Road transport – 800 – 760 – – 900 – – 231 – – 2,691 2,846 3,003
Env ironmental protection – – – –
Trading services 26,739 26,739 26,739 26,739 26,739 26,739 26,739 26,739 26,739 26,739 26,739 25,939 320,073 308,592 327,579
Energy sources – – – – – – – – – – – – – – –
Water management 15,710 15,710 15,710 15,710 15,710 15,710 15,710 15,710 15,710 15,710 15,710 21,190 194,003 268,592 173,579
Waste w ater management 11,029 11,029 11,029 11,029 11,029 11,029 11,029 11,029 11,029 11,029 11,029 4,749 126,070 40,000 154,000
Waste management – – – – – – – – – – – – – – –
Other – – – –
Total Capital Expenditure - Functional 2 28,832 29,632 28,832 29,592 28,832 28,832 29,732 28,832 28,832 29,063 28,832 28,032 347,874 320,684 339,766
Funded by:
National Gov ernment 113,174 1,346 – – 89,850 – – 1,346 89,850 (800) 294,764 300,938 319,557
Prov incial Gov ernment – – – –
District Municipality – – – –
Other transfers and grants – – – –
Transfers recognised - capital 113,174 1,346 – – 89,850 – – 1,346 89,850 – – (800) 294,764 300,938 319,557
Borrowing – – – –
Internally generated funds 53,110 53,110 19,747 20,209
Total Capital Funding 113,174 1,346 – – 89,850 – – 1,346 89,850 – – 52,310 347,874 320,684 339,766
Budget Year 2019/20Medium Term Revenue and Expenditure
Framework
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NGAKA MODIRI MOLEMA DISTRICT MUNICIPALITY
Page | 193
DC38 Ngaka Modiri Molema - Supporting Table SA30 Budgeted monthly cash flow
MONTHLY CASH FLOWS
R thousand July August Sept. October November December January February March April May JuneBudget Year
2019/20
Budget Year
+1 2020/21
Budget Year
+2 2021/22
Cash Receipts By Source 1
Property rates – – – – – – – – – – – – – – –
Serv ice charges - electricity rev enue – – – – – – – – – – – – – – –
Serv ice charges - w ater rev enue 38 55 19 40 13 38 50 19 55 65 10 49 450 550 750
Serv ice charges - sanitation rev enue 9 11 5 21 10 16 4 8 7 10 3 3 107 118 118
Serv ice charges - refuse rev enue – – – – – – – – – – – – – – –
Rental of facilities and equipment 17 19 17 21 17 18 18 20 20 17 21 17 218 221 223
Interest earned - ex ternal inv estments – – – – – – – – – – – – – – –
Interest earned - outstanding debtors – – – – – – – – – – – – – – –
Div idends receiv ed – – – – – – – – – – – – – – –
Fines, penalties and forfeits – – – – – – – – – – – – – – –
Licences and permits – – – – – – – – – – – – – – –
Agency serv ices – – – – – – – – – – – – – – –
Transfer receipts - operational 305,122 2,824 – – – 228,842 371 – 229,212 – – – 766,370 832,560 907,269
Other rev enue 155 190 220 250 300 100 90 100 30 65 90 273 1,863 2,089 2,323
Cash Receipts by Source 305,341 3,099 261 332 340 229,013 533 147 229,324 157 124 341 769,008 835,538 910,683
Other Cash Flows by Source
Transfer receipts - capital 119,800 1,346 – – 89,850 – – 1,346 89,850 – – – 302,190 320,120 345,848
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) – – – – – – – – – – – – – – –
Proceeds on disposal of PPE – – – – – – – – – – – – – – –
Short term loans – – – – – – – – – – – – – – –
Borrow ing long term/refinancing – – – – – – – – – – – – – – –
Increase (decrease) in consumer deposits – – – – – – – – – – – – – – –
Decrease (Increase) in non-current debtors – – – – – – – – – – – – – – –
Decrease (increase) other non-current receiv ables – – – – – – – – – – – – – – –
Decrease (increase) in non-current inv estments – – – – – – – – – – – – – – –
Total Cash Receipts by Source 425,140 4,444 261 332 90,189 229,013 533 1,492 319,174 157 124 341 1,071,198 1,155,658 1,256,531
Cash Payments by Type
Employ ee related costs 27,332 27,332 27,332 27,332 54,663 27,332 27,332 27,332 27,332 27,332 27,332 27,332 355,312 373,510 394,188
Remuneration of councillors 931 931 931 931 931 1,862 931 931 931 931 931 931 12,106 12,832 13,602
Finance charges 50 50 50 50 50 50 50 50 50 50 50 50 600 630 662
Bulk purchases - Electricity – – – – – – – – – – – – – – –
Bulk purchases - Water & Sew er 3,000 – – 3,000 – 3,000 – – 3,000 – – 6,000 18,000 21,600 24,000
Other materials 9,775 9,775 9,775 9,775 9,775 9,775 9,775 9,775 9,775 9,775 9,775 7,976 115,500 121,275 127,339
Contracted serv ices 6,261 6,261 6,261 6,261 6,261 6,261 6,261 6,261 6,261 6,261 6,261 11,958 80,823 81,043 82,220
Transfers and grants - other municipalities 1,000 – – – 10,000 – – – 5,000 – – 9,000 25,000 26,250 27,563
Transfers and grants - other – – – – – – – – – – – – – – –
Other ex penditure 44,285 5,721 25,721 10,362 5,721 10,362 5,721 5,721 10,362 5,721 5,721 13,205 148,621 185,686 237,119
Cash Payments by Type 92,633 50,069 70,069 57,710 87,401 58,641 50,069 50,069 62,710 50,069 50,069 76,451 755,963 822,826 906,691
Other Cash Flows/Payments by Type
Capital assets 28,990 28,990 28,990 28,990 28,990 28,990 28,990 28,990 28,990 28,990 28,990 28,990 347,874 320,684 339,766
Repay ment of borrow ing – – – – – – – – – – – – – – –
Other Cash Flow s/Pay ments – – – – – – – – – – – – – – –
Total Cash Payments by Type 121,623 79,059 99,059 86,700 116,390 87,631 79,059 79,059 91,700 79,059 79,059 105,441 1,103,837 1,143,510 1,246,457
NET INCREASE/(DECREASE) IN CASH HELD 303,517 (74,615) (98,798) (86,368) (26,201) 141,382 (78,526) (77,567) 227,474 (78,902) (78,935) (105,100) (32,639) 12,148 10,074
Cash/cash equiv alents at the month/y ear begin: 200,000 503,517 428,903 330,105 243,736 217,535 358,917 280,391 202,824 430,298 351,396 272,461 200,000 167,361 179,509
Cash/cash equiv alents at the month/y ear end: 503,517 428,903 330,105 243,736 217,535 358,917 280,391 202,824 430,298 351,396 272,461 167,361 167,361 179,509 189,583
Medium Term Revenue and Expenditure
FrameworkBudget Year 2019/20
NGAKA MODIRI MOLEMA DISTRICT MUNICIPALITY
Page | 194
2.10 Capital Expenditure Details
Table 48: Supporting Table SA34a Capital expenditure on new assets by asset class
Description Ref 2015/16 2016/17 2017/18 Current Year 2018/19 2019/20 Medium Term Revenue &
Expenditure Framework
R thousand 1 Audited
Outcome Audited
Outcome Audited
Outcome Original Budget
Adjusted Budget
Full Year Forecast
Budget Year
2019/20
Budget Year +1 2020/21
Budget Year +2 2021/22
Capital expenditure on new assets by Asset Class/Sub-class
Infrastructure 53,261 92,110 – 289,608 371,564 371,564 98,230 258,878 202,193
Roads Infrastructure – – – 2,540 2,540 2,540 2,691 2,846 3,003
Roads – – – 2,540 2,540 2,540 2,691 2,846 3,003
Water Supply Infrastructure 53,261 92,110 – 166,537 221,509 221,509 54,789 236,032 159,190
Boreholes – – – – 75,000 75,000 10,000 10,500 11,025
Pump Stations – – – – 7,674 7,674 – – –
Water Treatment Works – – – – – – – – –
Distribution 53,261 92,110 166,537 138,835 138,835 44,789 225,532 148,165
Sanitation Infrastructure – – – 120,531 147,515 147,515 40,750 20,000 40,000
Reticulation – – – 120,531 147,515 147,515 40,750 20,000 40,000
Other assets 13,809 – – 10,119 10,000 10,000 17,630 2,762 2,900
Operational Buildings 13,809 – – 10,119 10,000 10,000 17,630 2,762 2,900
Municipal Offices 13,809 – – 10,000 10,000 10,000 16,500 1,575 1,654
Intangible Assets 581 1,583 – 2,000 2,140 2,140 4,200 3,885 4,079
Licences and Rights 581 1,583 – 2,000 2,140 2,140 4,200 3,885 4,079
Computer Software and Applications 581 1,583 – 2,000 2,140 2,140 4,200 3,885 4,079
Computer Equipment – – – 304 238 238 1,740 671 183
Computer Equipment – – – 304 238 238 1,740 671 183
Furniture and Office Equipment 79 433 – 180 180 180 4,680 1,768 1,860
Furniture and Office Equipment 79 433 – 180 180 180 4,680 1,768 1,860
Machinery and Equipment 117 – – – – – 500 525 551
Machinery and Equipment 117 – – – – – 500 525 551
Transport Assets – 607 – 4,000 4,000 4,000 14,700 – –
Transport Assets – 607 – 4,000 4,000 4,000 14,700 – –
Total Capital Expenditure on new assets 1 67,846 94,732 – 306,210 388,122 388,122 141,679 268,488 211,766
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Table 49: Supporting Table SA34b Capital expenditure on the renewal of existing asset by asset class
Description Ref Current Year 2018/19 2019/20 Medium Term Revenue &
Expenditure Framework
R thousand 1 Original Budget
Adjusted Budget
Full Year Forecast
Budget Year
2019/20
Budget Year +1 2020/21
Budget Year +2 2021/22
Capital expenditure on renewal of existing assets by Asset Class/Sub-class Infrastructure – – – 16,206 – –
Water Supply Infrastructure – – – 16,206 – –
Distribution – – – 16,206 – –
Total Capital Expenditure on renewal of existing assets 1 – – – 16,206 – –
Renewal of Existing Assets as % of total capex 0.0% 0.0% 0.0% 4.7% 0.0% 0.0%
Renewal of Existing Assets as % of deprecn" 0.0% 0.0% 0.0% 8.8% 0.0% 0.0%
NGAKA MODIRI MOLEMA DISTRICT MUNICIPALITY
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Table 50: Supporting Table SA34c Repairs and maintenance expenditure by asset class
Description Ref 2015/16 2016/17 2017/18 Current Year 2018/19 2019/20 Medium Term Revenue &
Expenditure Framework
R thousand 1 Audited
Outcome Audited
Outcome Audited
Outcome Original Budget
Adjusted Budget
Full Year Forecast
Budget Year
2019/20
Budget Year +1 2020/21
Budget Year +2 2021/22
Repairs and maintenance expenditure by Asset Class/Sub-class
Infrastructure 58,154
26,361
– 13,000 14,000 14,000
115,500
121,275
127,339
Roads Infrastructure 2,206
3,196
– 2,000 2,000 2,000
–
–
–
Roads 2,206
3,196 2,000 2,000 2,000
Water Supply Infrastructure 55,949
23,165
– 11,000 12,000 12,000
115,500
121,275
127,339
Boreholes 3,000 – – 28,500
29,925
31,421
Water Treatment Works 60,000
63,000
66,150
Distribution 55,949
23,165 8,000 12,000 12,000
27,000
28,350
29,768
Community Assets –
–
– 500 500 500
–
–
–
Community Facilities –
–
– 500 500 500
–
–
–
Fire/Ambulance Stations 500 500 500
Investment properties –
–
– – – –
–
–
–
Other assets –
1,729
– 1,580 2,730 2,730
–
–
–
Operational Buildings –
1,729
– 1,580 2,730 2,730
–
–
–
Municipal Offices 1,729 1,580 1,580 1,580
Stores 1,150 1,150
Transport Assets 6,027
–
– 2,000 2,000 2,000
–
–
–
Transport Assets 6,027 2,000 2,000 2,000
Total Repairs and Maintenance Expenditure 1 64,181
28,090
– 17,080 19,230 19,230
115,500
121,275
127,339
R&M as a % of PPE 1.7% 0.6% 0.0% 0.7% 0.4% 0.4% 0.0% 2.3% 2.3% R&M as % Operating Expenditure 6.5% 4.4% 0.0% 1.9% 2.5% 2.5% 0.0% 14.3% 14.2%
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Table 51: Supporting Table SA34d Depreciation by asset class
Table 52: Supporting Table SA34e Capital expenditure on the upgrading of existing asset by asset class
Description Ref 2015/16 2016/17 2017/18 Current Year 2018/19 2019/20 Medium Term Revenue &
Expenditure Framework
R thousand 1 Audited
Outcome Audited
Outcome Audited
Outcome Original Budget
Adjusted Budget
Full Year Forecast
Budget Year
2019/20
Budget Year +1 2020/21
Budget Year +2 2021/22
Depreciation by Asset Class/Sub-class
Infrastructure
318,251
368,819 –
384,824
210,000
210,000
184,257
202,683
222,951
Roads Infrastructure – – – – – – – – –
Water Supply Infrastructure 318,251
368,819 –
384,824
210,000
210,000
184,257
202,683
222,951
Distribution 318,251
368,819
384,824
210,000
210,000
184,257
202,683
222,951
Community Assets 727 726 – – – – – – –
Community Facilities 727 726 – – – – – – –
Fire/Ambulance Stations 727 726
Other assets 3,888 3,670 – – – – – – –
Operational Buildings 3,888 3,670 – – – – – – –
Municipal Offices 3,888 3,670
Furniture and Office Equipment 623 1,320 – – – – – – –
Furniture and Office Equipment 623 1,320
Machinery and Equipment 1,457 132 – – – – – – –
Machinery and Equipment 1,457 132
Transport Assets 9,967 10,042 – – – – – – –
Transport Assets 9,967 10,042
Total Depreciation 1 334,913
384,709 –
384,824
210,000
210,000
184,257
202,683
222,951
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`Description Ref 2015/16 2016/17 2017/18 Current Year 2018/19 2019/20 Medium Term Revenue &
Expenditure Framework
R thousand 1 Audited
Outcome Audited
Outcome Audited
Outcome Original Budget
Adjusted Budget
Full Year Forecast
Budget Year
2019/20
Budget Year +1 2020/21
Budget Year +2 2021/22
Capital expenditure on upgrading of existing assets by Asset Class/Sub-class Infrastructure – – – – – – 189,989 48,196 120,000 Water Supply Infrastructure – – – – – – 104,669 28,196 6,000 Distribution – – – – – – 104,669 28,196 6,000 Sanitation Infrastructure – – – – – – 85,320 20,000 114,000 Waste Water Treatment Works – – – – – – 85,320 20,000 114,000
Total Capital Expenditure on upgrading of existing assets 1 – – – – – – 189,989 48,196 120,000
Upgrading of Existing Assets as % of total capex 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 54.6% 15.2% 36.2% Upgrading of Existing Assets as % of deprecn" 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 103.1% 23.8% 53.8%
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Table 53: Supporting Table SA35 Future financial implications of the capital budget
Vote Description Ref 2019/20 Medium Term Revenue & Expenditure Framework
Forecasts
R thousand Budget Year 2019/20
Budget Year +1 2020/21
Budget Year +2 2021/22
Forecast 2022/23
Forecast 2023/24
Forecast 2024/25
Present value
Capital expenditure 1
Vote 1 - Executive and Council – – – Vote 2 - Municipal Manager 580 – – Vote 3 - Finance, Economy & Enterprise Development 2,100 2,205 2,315 Vote 4 - Corporate Services 10,500 5,225 4,961 Vote 5 - Development & Town Planning Services – – –
Vote 6 - Community Services 11,930 1,817 1,907 Vote 7 - Public Works & Basic Services 322,764 311,438 330,582 Vote 8 - Internal Audit – – – Vote 9 - [NAME OF VOTE 9] – – –
Vote 10 - [NAME OF VOTE 10] – – – Vote 11 - [NAME OF VOTE 11] – – – Vote 12 - [NAME OF VOTE 12] – – – Vote 13 - [NAME OF VOTE 13] – – –
Vote 14 - [NAME OF VOTE 14] – – – Vote 15 - [NAME OF VOTE 15] – – – List entity summary if applicable
Total Capital Expenditure 347,874 320,684 339,766 – – – – Future operational costs by vote 2 Vote 1 - Executive and Council Vote 2 - Municipal Manager Vote 3 - Finance, Economy & Enterprise Development
Vote 4 - Corporate Services Vote 5 - Development & Town Planning Services Vote 6 - Community Services Vote 7 - Public Works & Basic Services
Vote 8 - Internal Audit Vote 9 - [NAME OF VOTE 9] Vote 10 - [NAME OF VOTE 10] Vote 11 - [NAME OF VOTE 11]
Vote 12 - [NAME OF VOTE 12] Vote 13 - [NAME OF VOTE 13] Vote 14 - [NAME OF VOTE 14] Vote 15 - [NAME OF VOTE 15]
List entity summary if applicable
Total future operational costs – – – – – – –
Total future revenue – – – – – – –
Net Financial Implications
347,874 320,684 339,766 – – – –
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2.11 Legislative Compliance Status
This section highlights compliance status with the Municipal Finance Management Act 56 of 2003
and implementation requirements throughout the year. The following compliance issues are
reported.
In-year reporting
As far as in-year reporting is concern, the municipality has successfully complied with MFMA
requirements. Section 52 (d), 71 & 72 reports were presented and adopted to mayor and council
for last quarter although there were challenges with implementation of mSCOA reform.
Internship programme
Since the introduction of the MFMA internship programme the district municipality has successfully
trained and employed 20 and 17 interns respectively, and majority of these interns were appointed
in Budget and Treasury Office. For the new financial year, municipality will be appointing six (6)
effectively from 1 July 2019 for period of two years.
Budget and Treasury Office
The Budget and Treasury Office has been established in accordance with the MFMA and the Chief
Financial Officer is appointed of a 5 year term contract since 1 January 2018.
Audit Committee
The term of office for Audit Committee has come to an end in September 2017. Nonetheless, the
new audit committee has been appointed since 1 April 2018.
Service Delivery Budget and Implementation Plan
The detail SDBIP document is at a draft stage and will be finalised after approval of the 2019/20
MTREF in May 2019 and it will be directly aligned and informed by the 2019/20 MTREF.
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Annual Report
Annual Report has been compiled and adopted in terms of the MFMA requirements and Municipal
Public Accounts Committee is in a process to consult with the local communities for oversight report.
MFMA Competency Training
At the beginning, the municipality, in partnership with National Treasury has enrolled 16 municipal
officials of the municipality for minimum competency requirement as envisaged by Government
gazette No 29967 which was published in July 2007. A note should be taken that, out of sixteen
(16) municipal officials registered with University of Pretoria, nine (9) of them are designated
managers from different department within the municipality. For junior officials of the municipality,
this training was concluded last year in October 2016. In addition, two senior officials (Chief
Financial Officer & Senior Manager: Development & Town Planning Services) have completed a
certificate programme in municipal development and leadership with Witwatersrand. To strengthen
oversight and promotion of good governance, four Councillors including the Mayor are enrolled with
the MFMA training programme since August 2018.
Policies
Policies and procedures are living documents that should grow and adapt with organisational
objectives and goals. As results, regular review of policies and procedures keeps the organisation
up to date with regulations, technology, and industry best practices. On the other hand, policy
review ensures that the organisational policies are consistent and effective its day-to-day
operations. For 2019/20 budget year, some budget related policies will be amended and some will
be introduced such as Municipal Virement Policy and Unauthorized, Irregular, Fruitless and Wasteful
Expenditure Policy.
mSCOA Compliance
On the 1 July 2017 the municipality implemented mSCOA regulations. However, the municipality
experienced number of challenges. The budget related policies were not updated for seamless
alignment to the mSCOA regulations [e.g. Virement policy] and Data migration/conversation
/cleansing remains a challenge. However, in addressing these challenges, the following
development can be reported:
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Draft Virement policy will be tabled to council with 2019/20 MTREF;
2018/19 Adjustment budget schedules were prepared and directly extracted from the
system;
On monthly basis, data-strings were successfully submitted to national treasury database
In addition, the Provincial Treasury seconded a service provider to facilitate the process of change
management in relation to mSCOA implementation. However, the process is still on ongoing.
2.12 Recommendations
It is recommended that council consider and adopt Annual Operating and Capital budget for
2019/20 financial year as indicated below:-
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2.11.1 Operating revenue framework to the amount of R 775,974 million
2.11.2 Operating expenditure budget to the amount of R 847,020 million
2.11.3 Capital expenditure budget to the amount of R 347, 874 million
2.11.4 Total revenue budget of R 1, 071, 198 billion
2.11.5 Grants and subsidies capital to the amount of R 295,564 million
2.11.6 Schedule A1 to A10 budget and accompanying supporting tables
2.11.7 The budget-related policies accompanying the MTREF budget for 2019/20 MTREF
2.11.8 Adopt the cost containment measures as instructed by National Treasury in MFMA Circular
No.82, 89, 91, 93 & 94
2.11.10 Submit both printed and electronic formats to the National Treasury and other relevant
provincial treasuries
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MUNICIPAL MANAGER’S QUALITY CERTIFICATION
I ……………………………………………………………………….., municipal manager of Ngaka Modiri Molema
District Municipality (DC38), hereby certify that the annual budget and supporting documentation
have been prepared in accordance with the Municipal Finance Management Act and the regulations
made under the Act, and that the annual budget and supporting documents are consistent with the
Integrated Development Plan of the municipality.
Print Name: _____________________________________________
Municipal manager of Ngaka Modiri Molema District Municipality (DC38)
Signature: ______________________________________________
Date: ____/_____/______
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NGAKA MODIRI MOLEMA DISTRICT MUNICIPALITY
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NGAKA MODIRI MOLEMA DISTRICT MUNICIPALITY
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KPA 1: MUNICIPAL INSTITUTIONAL DEVELOPMENT AND TRANSFORMATION
National LG Priorities
LABOUR MATTERS ,FINANCIAL AND ADMINISTRATIVE CAPACITY, SERVICE DELIVERY, FINANCIAL VIABILITY, GOOD GOVERNANCE, INSTITUTIONAL TRANSFORMATION AND DEVELOPMENT, ECONOMIC DEVELOPMENT
KPA MUNICIPAL INSTITUTIONAL DEVELOPMENT AND TRANSFORMATION Outcome 9
Output 1 IMPLEMENT A DIFFERENTIATED APPROACH TO MUNICIPAL FINANCING, PLANNING AND SUPPORT Output 6 ADMINISTRATIVE AND FINANCIAL CAPABILITIES OF MUNICIPALITIES ARE ENHANCED
Functional Area/ Development Priorities
Strategic Objective
Baseline 2018/2019
Annual Performance Target
Budget Key Performance Indicator
KPI Type
Quarterly projections/process indicator
Portfolio Of Evidence
Weightings
Current Status
Mayoral Committee Sittings
To promote good governance and accountable government
7 Mayoral Committee meetings held
7 Mayoral Committee meetings supported by June 2020
Opex KPI 1 Number of Mayoral Committee Meetings supported by June 2020 P
roce
ss In
dic
ato
r
Q1 1 Mayoral Committee Meeting supported by end September 2019
Signed Minutes & Attendance Register
15
Q2 1 Mayoral Committee Meeting supported by end December 2019
Q3 3 Mayoral Committee Meetings supported by end March 2020
Q4 2 Mayoral Committee Meetings supported by end June 2020
Council Sittings To promote good governance and accountable government
7 Council Meetings held
7 Council Meetings supported by June 2020
Opex KPI 2 Number of Council Meetings supported by June 2020
Pro
cess
Ind
icat
or
Q1 1 Council Meeting supported by end September 2019
Signed Minutes & Attendance Register
20
Q2 1 Council Meeting supported by end December 2019
Q3 3 Council Meetings supported by end March 2020
Q4 2 Council meetings supported by end June 2020
Human Resource Management
Achieve positive employee climate
2017/2018 Employment Equity Reports
2018/2019 Employment Equity Report
Opex KPI 3 Employment Equity Report submitted to Department of Labour by 15th January 2020
Ou
tpu
t In
dic
ato
r
Q1 1 EE Progress Report submitted to EE Committee by end September 2019
Signed EE Report Acknowledgement Letter
15
Q2 1 EE Progress Report submitted to EE Committee by end December 2019
Q3 Employment Equity Report submitted to Department of Labour by 15th January 2020
Q4
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National LG Priorities
LABOUR MATTERS ,FINANCIAL AND ADMINISTRATIVE CAPACITY, SERVICE DELIVERY, FINANCIAL VIABILITY, GOOD GOVERNANCE, INSTITUTIONAL TRANSFORMATION AND DEVELOPMENT, ECONOMIC DEVELOPMENT
KPA MUNICIPAL INSTITUTIONAL DEVELOPMENT AND TRANSFORMATION Outcome 9
Output 1 IMPLEMENT A DIFFERENTIATED APPROACH TO MUNICIPAL FINANCING, PLANNING AND SUPPORT Output 6 ADMINISTRATIVE AND FINANCIAL CAPABILITIES OF MUNICIPALITIES ARE ENHANCED
Functional Area/ Development Priorities
Strategic Objective
Baseline 2018/2019
Annual Performance Target
Budget Key Performance Indicator
KPI Type
Quarterly projections/process indicator
Portfolio Of Evidence
Weightings
Current Status
Training and Development
To promote skills development
2019/20 Work Skills Plan
2020/2021 Work Skills Plan
Opex KPI 4 2020/21 Workplace Skills Plan developed and submitted to LGSETA by 30 April 2020
Ou
tpu
t In
dic
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Q1 1 Report on training conducted by end September 2019
Training Reports; Report on Training needs; Acknowledgement letter from LGSETA
15
Q2 1 Report on training conducted by end December 2019
Q3 1 Report on training needs submitted to Senior Manager by end March 2020
Q4 2020/2021 WSP submitted to LGSETA by 30 April 2020
Information Communications Technology
To improve technology efficiency
New ICT Strategy Plan and Business Continuity (Disaster Recovery) Plan developed and approved
KPI 5 ICT Strategy and Business Continuity Plans (Disaster Recovery) developed and approved by Council by 30 June 2020
Ou
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Q1
Draft ICT Strategy Plan and Business/Disaster Recovery Plan; Approved ICT Strategy Plan; Business Continuity/Disaster Recovery Plan and Council Resolution
15
Q2
Q3 Draft ICT Strategy Plan and Business Continuity (Disaster Recovery) Plan submitted to Senior Management
Q4 Approval of ICT Strategy Plan and Business Continuity (Disaster Recovery) Plan submitted to Council
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National LG Priorities
LABOUR MATTERS, FINANCIAL AND ADMINISTRATIVE CAPACITY, SERVICE DELIVERY, FINANCIAL VIABILITY, GOOD GOVERNANCE, INSTITUTIONAL TRANSFORMATION AND DEVELOPMENT, ECONOMIC DEVELOPMENT
KPA MUNICIPAL INSTITUTIONAL DEVELOPMENT AND TRANSFORMATION
Outcome 9 Output 1 IMPLEMENT A DIFFERENTIATED APPROACH TO MUNICIPAL FINANCING, PLANNING AND SUPPORT
Output 6 ADMINISTRATIVE AND FINANCIAL CAPABILITIES OF MUNICIPALITIES ARE ENHANCED
Functional Area/ Development Priorities
Strategic Objective
Baseline Annual Performance Target
Budget Key Performance Indicator
KPI Type
Quarterly projections/process indicator Portfolio Of Evidence
Weightings
Legal Services To promote accountable, efficient and transparent administration
4 Contract Management Registers
4 signed updated Contract Management Registers
Opex KPI 6 Number of signed updated Contracts Management Registers submitted to MM by end June 2020
Ou
tpu
t In
dic
ato
r
Q1 1 Updated Contract Management Register submitted to MM by end September 2019
Contract Management Register signed by MM
10
Q2 1 Updated Contract Management Register submitted to MM by end December 2019
Q3 1 Updated Contract Management Registers submitted to MM by end March 2020
Q4 1 Updated Contract Management Registers submitted to MM by end June 2020
4 Litigation Reports For and Against the Municipality submitted to MM
4 signed Litigation Register for and Against the Municipality submitted to MM by end June 2020
R2m KPI 7 Number of signed Litigation Register submitted to MM by end June 2020
Ou
tpu
t In
dic
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r
Q1 1 Litigation Register for and against the Municipality submitted to MM by end September 2019
Litigation Register signed by MM
10
Q2 1 Litigation Register for and against the Municipality submitted to MM by end December 2019
Q3 1 Litigation Register for and against the Municipality submitted to MM by end March 2020
Q4 1 Litigation Register for and against the Municipality submitted to MM by end June 2020
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KPA 2: BASIC SERVICE DELIVERY AND INFRASTRUCTURE DEVELOPMENT
National LG Priorities
BASIC SERVICE DELIVERY
KPA BASIC SERVICE DELIVERY AND INFRASTRUCTURE DEVELOPMENT Outcome 9 Output 2 IMPROVE ACCESS TO BASIC SERVICES Functional Area/ Development Priorities
Strategic Objective
Baseline 2018/2019
Annual Performance Target Budget Key Performance Indicator
KPI Type
Quarterly projections/process indicator Portfolio Of Evidence
Weightings
Current Status
Disaster Management Services
Provide integrated and coordinated Disaster Management Services
2 4 x Disaster Awareness Campaigns by June 2020
R 320 000.00
KPI 8 Number of Disaster Awareness Campaigns conducted
Pro
cess
Ind
icat
or
Q1 Disaster Management Awareness Campaign - Tswaing L.M
Report; Attendance registers; Programme
Q2 Disaster Management Awareness Campaign - Ratlou L.M
Q3 Disaster Management Awareness Campaign - Ramotshere Moiloa L.M
Q4 Disaster Management Awareness Campaign - Ditsobotla L.M
Fire Fighting Services
To provide Fire & Rescue Services
100 Public Information Education Relations (PIER) conducted
100 Public Information Education Relations (PIER) conducted at: Ratlou Ramotshere Ditsobotla Tswaing LM’s
OPEX KPI 9 Number of Public Information Education Relations (PIER) through awareness campaigns conducted
Ou
tpu
t In
dic
ato
r
Q1 25 PIER conducted
Report; Attendance Registers; Programme
Q2 25 PIER conducted
Q3 25 PIER conducted
Q4 25 PIER conducted
Municipal Health Services
To provide Municipal Health Services Food safety, waste mngt,
47 awareness & education campaigns conducted
56 awareness & education campaigns on Food safety, Health & Hygiene, Health surveillance of premises, Waste management &Vector control conducted by June 2020 in the whole District
R 370,000.00
KPI 10 Number of awareness & education campaigns on Food safety, Health & Hygiene, Health surveillance of premises, Waste management & Vector control conducted
Pro
cess
Ind
icat
or
Q1 14 awareness & education campaigns conducted in all five regions
Programmes Attendance Registers & Campaign reports
20
Q2 14 awareness & education campaigns conducted in all five regions
Q3 14 awareness & education campaigns conducted in all five regions
Q4 14 awareness & education campaigns conducted in all five regions
Security Support Services
Creating a safe and secure working environment for the Municipality
40 employees 52 employees to be vetted by 30 June 2020 Senior Managers; Level 01 Managers; SCM officials, Finance officials, Records, PA’s and Secretaries
OPEX KPI 11 Number of employees to be vetted
Ou
tpu
t
Ind
icat
or
Q1 15 employees to be vetted Acknowledgement receipt of vetting form letter by SSA
Q2 15 employees to be vetted
Q3 15 employees to be vetted
Q4 7 employees to be vetted
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National LG Priorities
BASIC SERVICE DELIVERY
KPA BASIC SERVICE DELIVERY AND INFRASTRUCTURE DEVELOPMENT Outcome 9
Output 2 IMPROVE ACCESS TO BASIC SERVICES
Functional Area/ Development Priorities
Strategic Objective
Baseline 2018/2019
Annual Performance Target
Budget Key Performance Indicator
KPI Type
Quarterly projections/process indicator
Portfolio Of Evidence
Weightings
Current Status
Water Services Planning
To Supply Water New Drilling and Equipping of Boreholes yielding to meet the minimum demand by June 2020
R10m KPI 12 Number of boreholes drilled equipped and operational P
roce
ss
Ind
icat
or
Q1 Areas and demand Technical report and completion certificate on drilled Boreholes (Drilling and Equipping)
Q2 Areas and demand
Q3 Areas and demand
Q4 Areas and demand
Water services Provision
To provide water service planning
207 Households with piped water
95% of Yard water connections applications received (MLM Peri-Urban) by June 2020
R4m KPI 13 Percentage of received household water connection applications
Pro
cess
Ind
icat
or
Q1 23.7 % of yard water connection received
Monthly yard connections report and Customer satisfaction letters
Q2 23.7 % of yard water connection received
Q3 23.7 % of yard water connection received
Q4 23.7 % of yard water connection received
Water services Provision
To address water services emergencies
50 Villages with 10kl tanks served with water through tankering including emergencies i.e funerals and other related water queries
4 800 000 litres of water provided through tankering in 50 villages including emergencies i.e funerals and other related water queries by June 2020 Mahikeng LM (27 Villages) Tswaing LM (10 Villages) Ramotshere Moilwa LM (13 Villages)
R9m KPI 14 Quantity of water delivered through tankering
Ou
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Q1 1 200 000 litres of water delivered
Monthly Job cards & Emergency Customer Care List (water tinkering) on 4 800 000 litres of water delivered
Q2 1 200 000 litres of water delivered
Q3 1 200 000 litres of water delivered
Q4 1 200 000 litres of water delivered
Water Services To provide water services development and maintenance
New 240 boreholes mechanically and electrically repaired by June 2020
R28.5m KPI 15 Number boreholes mechanically and electrically repaired
Ou
tpu
t
Ind
icat
or
Q1 60 boreholes repaired Quarterly reports on Boreholes repaired (Mechanical and Electrical)
Q2 60 boreholes repaired Q3 60 boreholes repaired Q4 60 boreholes repaired
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National LG Priorities
BASIC SERVICE DELIVERY
KPA BASIC SERVICE DELIVERY AND INFRASTRUCTURE DEVELOPMENT Outcome 9
Output 2 IMPROVE ACCESS TO BASIC SERVICES
Functional Area/ Development Priorities
Strategic Objective
Baseline 2018/2019
Annual Performance Target
Budget Key Performance Indicator
KPI Type
Quarterly projections/process indicator Portfolio Of Evidence
Weightings
Current Status
Water Services Planning
To provide water services planning
New Operation and Maintenance plan developed by June 2020
R3m KPI 16 Development of Operations and Maintenance Plan
Pro
cess
Ind
icat
or Q1 Appointment of Professional Service
Provider Adopted Operation & Maintenance plan; Council Resolution
Q2 Data collation and capturing
Q3 Development of draft document
Q4 Adopted O&M plan approved by Council
Sanitation Services To provide sanitation services
4 WWTW maintained
12 WWTW maintained by June 2020
R60m KPI 17 Number of Waste Water Treatment Plants maintained O
utp
ut
Ind
icat
or
Q1 3 WWTP attended and addressed Technical report on 12 Waste Water Treatment Plants maintained
Q2 3 WWTP attended and addressed Q3 3 WWTP attended and addressed
Q4 3 WWTP attended and addressed Water Quality Compliance
To improve Compliance to the Water Quality Standards for portable water (SANS241) and general limits for Waste Water
2014 Blue Drop assessment results
To achieve 50 % compliance on blue drop results subject to Maintenance of WWTW & WTW June 2020.
R8m KPI 18 Water Quality management (Compliance of Blue & Green drop)
Pro
cess
Ind
icat
or
Q1 Appointment of a Professional Service Provider
Analytic Lab Report
Q2 Data collation
Q3 Data collation
Q4 Data capturing
Roads services To improve the quality of roads
100km of gravel roads maintained
200km of gravel roads maintained by June 2020 MLM - 50km DLM - 50km TLM - 50km RLM - 50km
R8m KPI 19 Kilometres of gravel roads maintained
Ou
tpu
t In
dic
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r Q1 50km of gravel roads maintained Monthly roads maintenance reports; Site Diaries and weekly reports
Q2 50km of gravel roads maintained
Q3 50km of gravel roads maintained
Q4 50km of gravel roads maintained
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National LG Priorities
BASIC SERVICE DELIVERY
KPA BASIC SERVICE DELIVERY AND INFRASTRUCTURE DEVELOPMENT Outcome 9
Output 2 IMPROVE ACCESS TO BASIC SERVICES
Functional Area/ Development Priorities
Strategic Objective
Baseline 2018/2019
Annual Performance Target
Budget Key Performance Indicator
KPI Type
Quarterly projections/process indicator
Portfolio Of Evidence Weightings
Current Status
Roads Services To promote transportation Engineering
Visual assessment on unpaved roads (MLM,RLM,DLM and TLM)
Assessment and review of municipal paved roads (Mahikeng and Ditsobotla LMs) by June 2020
R2.6m KPI 20 Assessment and review of municipal paved roads by June 2020
Pro
cess
Ind
icat
or
Q1 Assessment and review of Municipal paved roads in Mahikeng LM – Phase I
Report on Assessment and review of municipal paved roads (Mahikeng and Ditsobotla LM)
Q2 Assessment and review of Municipal paved roads in Mahikeng LM – Phase II
Q3 Assessment and review of Municipal paved roads in Ditsobotla LM – Phase I
Q4 Assessment and review of Municipal paved roads in Ditsobotla LM – Phase II
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National LG Priorities
BASIC SERVICE DELIVERY
KPA BASIC SERVICE DELIVERY AND INFRASTRUCTURE DEVELOPMENT Outcome 9
Output 2 IMPROVE ACCESS TO BASIC SERVICES
Functional Area/ Development Priorities
Strategic Objective
Baseline 2018/2019
Annual Performance Target
Budget Key Performance Indicator
KPI Type
Quarterly projections/process indicator Portfolio Of Evidence Weightings
Current Status
Provision of water and sanitation
To manage the implementation of water and sanitation capital projects
26 capital projects 8 Capital projects in construction will be completed during the course of 2019/20 Financial year; Gamotlatla WS; Setlagole Bulk WS; Matile 2; Tshidilamolo WS; Majemantsho WS; Verdwaal WS; Sannieshof/Agisanang WS; Ottosdaal WS Phase 2
R299 479 000 KPI 21 Number of Capital projects in construction to be completed during the course of 2019/20 Financial year
Pro
cess
Ind
icat
or
Q1 Gamotlatla Water Supply; Matile 2
Progress Report; Expenditure Report; Progress report; Monthly Progress Report; Adjudication Report; Contractor's Appointment Letter; Final Approval Certificate; Completion Certificate
Q2 Setlagole Bulk Water Supply; Tshidilamolomo Water Supply
Q3 Majemantsho Water Supply; Verdwaal 2 Bulk Water Supply And Reticulation
Q4 Sannieshof/Agisanang Bulk Water Supply & Reticulation; Ottosdal Bulk Water Supply & Reticulation Phase 2
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KPA 3: PROMOTE FINANCIAL VIABILITY
National LG Priorities
FINANCIAL AND ADMINISTRATIVE CAPACITY
KPA PROMOTE FINANCIAL VIABILITY AND ACCOUNTABILITY Outcome 9
Output 1 A POLICY FRAMEWORK THAT PROVIDES FOR A DIFFERENTIATED APPROACH TO MUNICIPAL FINANCING,PLANNING AND SUPPORT IS IMPLEMENTED Output 6 ADMINISTRATIVE AND FINANCIAL CAPABILITIES OF MUNICIPALITIES ARE ENHANCED
Functional Area/ Development Priorities
Strategic Objective
Baseline 2018/2019
Annual Performance Target
Budget Key Performance Indicator
KPI Type
Quarterly projections/process indicator
Portfolio Of Evidence
Weightings
Current Status
Supply Chain Management
To promote financial accountability and transparency
2 quarterly SCM reports
4 quarterly SCM reports submitted to the Mayor within 10 working days of each quarter.
OPEX KPI 22 Number of Supply Chain Management quarterly reports submitted to the Mayor O
utp
ut
Ind
icat
or Q1 1 SCM report submitted to the
Mayor Acknowledgement of receipt from the office of the Executive Mayor
10
Q2 1 SCM report submitted to the Mayor
Q3 1 SCM report submitted to the Mayor
Q4 1 SCM report submitted to the Mayor
Budget and Reporting
To promote financial accountability and transparency
2019/2020 MSCOA Budget
2020/2021 Mscoa Budget approved by Council by 31 June 2020
OPEX KPI 23 Approval of the 2020/21 Mscoa Budget by 31 June 2020 P
roce
ss
Ind
icat
or
Q1 Council resolution on draft budget and approved budget.
20
Q2 Q3 Draft Budget approved by
Council by 31st March 2020 Q4 Budget approved by council by
the 31st May 2020 4 section 52 (d) reports
(4 section 52 (d) reports submitted to council) by 30 June 2020
OPEX KPI 24 Number of reports on the financial state of the municipality submitted to Council Section 52(d)
Pro
cess
Ind
icat
or
Q1 1 section 52(d) reports submitted to council by 31 Oct 2019
Council Resolution and 4 section 52(d) reports
10 Q2 1 section 52(d) reports
submitted to council by 31 Jan 2020
Q3 1 section 52(d) reports submitted to council by 30 April 2020
Q4 1 section 52(d) reports submitted to council by 31 June 2020
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National LG Priorities
FINANCIAL AND ADMINISTRATIVE CAPACITY
KPA PROMOTE FINANCIAL VIABILITY AND ACCOUNTABILITY Outcome 9
Output 1 A POLICY FRAMEWORK THAT PROVIDES FOR A DIFFERENTIATED APPROACH TO MUNICIPAL FINANCING,PLANNING AND SUPPORT IS IMPLEMENTED Output 6 ADMINISTRATIVE AND FINANCIAL CAPABILITIES OF MUNICIPALITIES ARE ENHANCED
Functional Area/ Development Priorities
Strategic Objective
Baseline 2018/2019
Annual Performance Target
Budget Key Performance Indicator
KPI Type
Quarterly projections/process indicator Portfolio Of Evidence
Weightings
Current Status
Budget and Reporting
To promote financial accountability and transparency
12 section 71 reports submitted to the PT, NT and the mayor
12 section 71 reports submitted to the PT, NT and the Mayor within 10 working days of the end of each month
OPEX KPI 25 Number of monthly budget statements (section 71) submitted to the Executive Mayor, Treasury O
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Q1 3 monthly Sec 71 reports sub mitted each month 10 working days
Acknowledgement report by PT, NT and Mayor
10
Q2 3 monthly Sec 71 reports sub mitted each month 10 working days
Q3 3 monthly Sec 71 reports sub mitted each month 10 working days
Q4 3 monthly Sec 71 reports sub mitted each month 10 working days
2018/2019 Mid-Term Budget Report
Mid-Term Budget submitted to Council by 31 January 2020
OPEX KPI 26 Mid-Term Performance budget report submitted to Council by 31 January 2020
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Q1 Mid Term performance report and council resolution
15
Q2
Q3 Approved Mid-term report submitted to Council
Q4 2018/2019 Adjustment Budget Report
Adjustment Budget Approved by Council by 28 Feb 2020
OPEX KPI 27 Approval of the Adjustment Budget by Council by 28 Feb 2020
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Q1 Council Resolution & Adjustment Budget
10
Q2 Q3 Approved Budget Adjustment report Q4
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National LG Priorities
FINANCIAL AND ADMINISTRATIVE CAPACITY
KPA PROMOTE FINANCIAL VIABILITY AND ACCOUNTABILITY Outcome 9
Output 1 A POLICY FRAMEWORK THAT PROVIDES FOR A DIFFERENTIATED APPROACH TO MUNICIPAL FINANCING,PLANNING AND SUPPORT IS IMPLEMENTED Output 6 ADMINISTRATIVE AND FINANCIAL CAPABILITIES OF MUNICIPALITIES ARE ENHANCED
Functional Area/ Development Priorities
Strategic Objective
Baseline 2018/2019
Annual Performance Target
Budget Key Performance Indicator
KPI Type
Quarterly projections/process indicator
Portfolio Of Evidence
Weightings
Current Status
Financial Accountability and Transparency
To promote financial accountability and transparency
2 quarterly financial statements
2 quarterly financial statements submitted to Municipal Manager Executive Mayor by 30 June 2020
OPEX KPI 28 Number of quarterly financial statements submitted to the Municipal Manager and Exec Mayor
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Q1 Compile Annual Financial Statements and submit to AGSA by 31 August 2019
FEED Acknowledgement Letter; Council Resolution
15
Q2 Q3 1 quarterly financial
statements submitted
Q4 Interim Financial Statement by 30 April 2020
2 Reports on the implementation of the Audit Action Plan for 20172018
2 reports on the implementation of the Audit Action Plan submitted to the Municipal Manager by the end of June 2020
OPEX KPI 29 Number of reports on the implementation of the Audit Action Plan submitted to the Municipal Manager by the end of June 2020
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Q1 Signed AGSA Audit Report Annual Report Council Resolution with Audit Action Plan Council Resolution on 2018/19 Audit Action plan Implemented progress
10
Q2 Receive audit outcome by AGSA
Q3 1 audit action implementation plan
Q4 1 audit action implementation plan
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KPA 4: PROMOTE LOCAL ECONOMIC DEVELOPMENT
National LG Priorities
LABOUR MATTERS, FINANCIAL AND ADMINISTRATIVE CAPACITY
KPA PROMOTE LOCAL ECONOMIC DEVELOPMENT Outcome 9
Output 1 IMPLEMENTATION OF THE COMMUNITY WORK PROGRAMME Output 3 IMPLEMENT A DIFFERENTIATED APPROACH TO MUNICIPAL FINANCING, PLANNING AND SUPPORT
Functional Area/ Development Priorities
Strategic Objective
Baseline 2018/2019
Annual Performance Target
Budget Key Performance Indicator
KPI Type
Quarterly projections/process indicator
Portfolio Of Evidence
Weightings
Current Status
Sector promotion To promote Local Economic Development
Old District Growth and Development Strategy (DGDS)
DGDS Reviewed by June 2020
R 0.00 KPI 30 Reviewed District Growth and Development Strategy (DGDS) by June 2020
Pro
cess
Ind
icat
or
Q1
Draft DGDS; Final DGDS Document; Council resolution
10
Q2
Q3 Draft DGDS document
Q4 Final DGDS document submitted to Council for approval
10 Sector Development Programmes / Projects
5 SMME Support Programmes / Projects supported by June 2020 (5 Local Municipalities)
R430 000 KPI 31 Number of SMME Programmes / Projects supported by June 2020
Pro
cess
Ind
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or
Q1 3 SMME Exposed to Botswana Market Activation
Attendance Register; Reports; List of SMME’s
5
Q2 30 SMME’s trained on Financial Management
Q3 30 SMME’s workshopped on Supplier Development Programmes (In collaboration with CIDB)
Q4 Development of database of SMME’s offering services in NMMDM in collaboration with SCM.
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National LG Priorities
LABOUR MATTERS, FINANCIAL AND ADMINISTRATIVE CAPACITY
KPA PROMOTE LOCAL ECONOMIC DEVELOPMENT Outcome 9
Output 1 IMPLEMENTATION OF THE COMMUNITY WORK PROGRAMME Output 3 IMPLEMENT A DIFFERENTIATED APPROACH TO MUNICIPAL FINANCING, PLANNING AND SUPPORT
Functional Area/ Development Priorities
Strategic Objective
Baseline 2018/2019
Annual Performance Target
Budget Key Performance Indicator
KPI Type
Quarterly projections/process indicator
Portfolio Of Evidence
Weightings
Current Status
Sector Promotion To promote Local Economic Development
2 Tourism Development Programmes implemented
5 Tourism Development Programmes implemented
R200 000 KPI 32 Number of Tourism Development Programmes implemented by June 2020
Pro
cess
Ind
icat
or
Q1 Upgrading of 5 district heritage sites; Participate in National Tourism Career EXPO
Attendance Registers; Report & List of Heritage Sites; Confirmation Letters for Grading Council; Report
5
Q2 Conduct Service Excellence on 15 tourism establishments
Q3 Grading of 5 tourism establishments
Q4 3 SMME’s exposed to Durban Indaba Trade Show
Business Development
To promote Local Economic Development
50 Cooperatives/companies Registered
20 Companies Registered with Companies and Intellectual Property Commission (5 Local Municipalities)
R100 000 KPI 33 Number of Companies registered with Companies and Intellectual Property Commission by June 2020
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Q1 75 companies Registered
Registration Certificates
5
Q2 75 companies Registered
Q3 75 companies Registered
Q4 75 companies Registered
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National LG Priorities
LABOUR MATTERS, FINANCIAL AND ADMINISTRATIVE CAPACITY
KPA PROMOTE LOCAL ECONOMIC DEVELOPMENT Outcome 9
Output 1 IMPLEMENTATION OF THE COMMUNITY WORK PROGRAMME Output 3 IMPLEMENT A DIFFERENTIATED APPROACH TO MUNICIPAL FINANCING, PLANNING AND SUPPORT
Functional Area/ Development Priorities
Strategic Objective
Baseline 2018/2019
Annual Performance Target
Budget Key Performance Indicator
KPI Type
Quarterly projections/process indicator
Portfolio Of Evidence
Weightings
Current Status
Business Development
To enhance Rural Development
3 Rural Development Project supported by June 2019
4 Rural Development Project supported by June 2020 (4 Local Municipalities) Mahikeng LM Ramotshere Moiloa LM Ditsobotla LM Tswaing LM
R600 00 KPI 34 Number of Rural Development Projects to be supported by June 2020
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Q1 Thari ya Barolong Boora Makgetla Cooperative supported (Mahikeng LM)
Reports, Acknowledgement of receipt, invoices, delivery notes
5
Q2 Maphoka Gradens supported (Ramotshere MLM)
Q3 Revi Cooperative supported (Ditsobotla LM)
Q4 Dipeo Tsa Rona Cooperative supported (Tswaing LM)
Expanded Public works programme
To Expanded Public works programme
80 Jobs created through EPWP by June 2019
82 Jobs created through EPWP (5 Local Municipalities)
R 500 000 R 1 235 000
KPI 35 Number of jobs created through EPWP
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Q1 Recruitment & Appointment of 82 EPWP Participants: Mahikeng LM=22 Ramotshere MLM=15 Ditsobotla LM=15 Ratlou LM=15 Tswaing LM=15
Employment Contracts, Replacement contracts
10
Q2
Q3 Q4
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National LG Priorities
LABOUR MATTERS, FINANCIAL AND ADMINISTRATIVE CAPACITY
KPA PROMOTE LOCAL ECONOMIC DEVELOPMENT Outcome 9
Output 1 IMPLEMENTATION OF THE COMMUNITY WORK PROGRAMME Output 3 IMPLEMENT A DIFFERENTIATED APPROACH TO MUNICIPAL FINANCING, PLANNING AND SUPPORT
Functional Area/ Development Priorities
Strategic Objective
Baseline 2018/2019
Annual Performance Target
Budget Key Performance Indicator
KPI Type
Quarterly projections/process indicator
Portfolio Of Evidence Weightings
Current Status
Planning & Development (Integrated Development Programme)
To Develop, Amend and Adopt 5 year Credible IDP
Adopted 2019/2020 IDP Document
Approval of the Reviewed IDP for 2020/21 by Council by June 2020
R400 000 KPI 36 Review the IDP for 2020/21 by June 2020
Pro
cess
Ind
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or
Q1 Tabling of the IDP/PMS Budget Process Plan
IDP/PMS/Budget Process Plan, Council Resolution Draft IDP; Final IDP
15
Q2
Q3 Tabling of Draft IDP 2020/2021 to Council
Q4 Adoption of final IDP
2020/2021 by 31 May 2020
Institutional Social Facilitation
To facilitate Pre and Post implementation of Projects and Programmes of the Municipality
8 Social Facilitation conducted for registered and funded Projects by June 2019
Social Facilitation of 8 Projects and Programmes by June 2020 in all Local Municipalities
R31 000 KPI 37 Number of Municipal Projects and Programmes facilitated by June 2020
Pro
cess
Ind
icat
or
Q1 2 Social Facilitation conducted
Attendance Register and Reports
10
Q2 2 Social Facilitation conducted
Q3 2 Social Facilitation
conducted
Q4 2 Social Facilitation
conducted
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National LG Priorities
LABOUR MATTERS, FINANCIAL AND ADMINISTRATIVE CAPACITY
KPA PROMOTE LOCAL ECONOMIC DEVELOPMENT Outcome 9
Output 1 IMPLEMENTATION OF THE COMMUNITY WORK PROGRAMME Output 3 IMPLEMENT A DIFFERENTIATED APPROACH TO MUNICIPAL FINANCING, PLANNING AND SUPPORT
Functional Area/ Development Priorities
Strategic Objective
Baseline 2018/2019
Annual Performance Target
Budget Key Performance Indicator
KPI Type
Quarterly projections/process indicator
Portfolio Of Evidence
Weightings
Current Status
Institutional Social Facilitation
Supporting National Calendar of events /Celebrations
1 Water Week Celebration
District Water Week Celebration Conducted by June 2020
R120 000 KPI 38 Conduct District Water Week Celebration by June 2020
Pro
cess
Ind
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or Q1 Close Out Report and
Attendance Registers 5
Q2
Q3 1 District Water Week Celebration to be Conducted by March 2020
Q4
Planning & Development
Compilation of a Spatial Development Framework to be approved by council to form part of the IDP
New Approved Spatial Development Framework
R454 700.00
KPI 39 Spatial Development Framework approved by Council by 30 Jun e 2020
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Q1
Approved Spatial Development Framework; Council resolution
15 Q2
Q3
Draft Spatial Development Framework
Q4 Final Spatial Development Framework approved by Council
Planning & Development
Compilation of Environmental Management Framework to be approved by council to form part of the IDP
New Draft Environmental Management Framework approved by Council
R 958 500.00
KPI 40 An approved Environmental Management Framework approved by Council O
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Q1 Approved draft Environmental Management Framework; Council Resolution
10
Q2
Q3
Q4 Draft Environmental Management Framework approved by Council
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KPA 5: GOOD GOVERNANCE AND PUBLIC PARTICIPATION
National LG Priorities
GOVERNANCE/PUBLIC PARTICIPATION
KPA GOOD GOVERNANCE AND PUBLIC PARTICIPATION Outcome 9
Output 1 IMPLEMENT A DIFFERENTIATED APPROACH TO MUNICIPAL FINANCING, PLANNING AND SUPPORT Output 3 DEEPEN DEMOCRACY THROUGH A REFINED WARD COMMITTEE MODEL
Functional Area/ Development Priorities
Strategic Objective
Baseline 2018/2019
Annual Performance Target
Budget Key Performance Indicator
KPI Type
Quarterly projections/process indicator
Portfolio Of Evidence Weightings
Current Status
Internal Audit To improve the effectiveness of risk management, controls and governance processes
2018-2021 Audit Rollout Plan
Developed and approved 2019-2022 Audit Rollout Plan by the Audit Committee by 31 July 2019
Opex KPI 41 Development and approval of the 2019-2022 Audit Rollout Plan by the Audit Committee O
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Q1 Developed and approved 2019-2022 Audit Rollout Plan by the Audit Committee by 31 July 2019
A signed copy of the 2019-2022 Audit rollout plan; Minutes; Attendance register
Q2
Q3
Q4
Internal Audit To improve the effectiveness of risk management, controls and governance processes
The 2018/19 Internal Audit Charter
Developed and approved 2019/20 Internal Audit Committee by the Audit Committee by 31 July 2019
Opex KPI 42 Development and Approval of the 2019/20 Internal Audit Charter by the Audit Committee by 31 July 2019
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Q1 Developed and approved 2019/20 Internal Audit Committee by the Audit Committee by 31 July 2019
A signed copy of the 2019-20 Internal Audit Charter; Attendance register
Q2
Q3
Q4
Internal Audit
To improve the effectiveness of risk management, controls and governance processes
The 2018/19 Audit Committee Charter
Developed and approved 2019/20 Audit Committee charter developed and approved by Council by 31 August 2019
Opex KPI 43 Development of approval of the Audit Committee Charter by Council
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Q1 Developed and approved 2019/20 Audit Committee charter developed and approved by Council by 31 August 2019
Council Resolution: Audit Committee Charter 2019/20
Q2 Q3 Q4
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National LG Priorities
GOVERNANCE/PUBLIC PARTICIPATION
KPA GOOD GOVERNANCE AND PUBLIC PARTICIPATION Outcome 9
Output 1 IMPLEMENT A DIFFERENTIATED APPROACH TO MUNICIPAL FINANCING, PLANNING AND SUPPORT Output 3 DEEPEN DEMOCRACY THROUGH A REFINED WARD COMMITTEE MODEL
Functional Area/ Development Priorities
Strategic Objective
Baseline 2018/2019
Annual Performance Target
Budget Key Performance Indicator
KPI Type
Quarterly projections/process indicator
Portfolio Of Evidence
Weightings
Current Status
Internal Audit
To improve the effectiveness of risk management, controls and governance processes
The 2018/19 Annual Audit Plan
Developed and approved 2019/20 Annual Audit Plan by Audit Committee by 31 July 2019
Opex KPI 44 Development and approval of the 2019/20 Annual Audit Plan by the Audit Committee by 31 July 2019
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Q1 Developed and approved 2019/20 Annual Audit Plan by Audit Committee by 31 July 2019
2019/20 Annual Audit Plan duly signed off; Minutes of the Audit Committee meeting wherein the Annual Audit Plan was approved; Attendance register
Q2
Q3
Q4
Internal Audit
To improve the effectiveness of risk management, controls and governance processes
Eight (8) Audit Committee meetings held
Five (5) Audit committee meetings held: 4 ordinary Audit Committee meeting; 1 special Audit committee meeting
Opex KPI 45 Number of Audit Committee meetings held by June 2020
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Q1 Two (2) Audit Committee meeting held. (One ordinary and a Special Audit Committee meeting for review of 2018/19 AFS and Annual Performance report)
Minutes of the Audit Committee meeting; Attendance Registers
Q2 One (1) Audit Committee meeting held
Q3 One (1) Audit Committee meeting held
Q4 One (1) Audit Committee meeting held
NGAKA MODIRI MOLEMA DISTRICT MUNICIPALITY
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National LG Priorities
GOVERNANCE/PUBLIC PARTICIPATION
KPA GOOD GOVERNANCE AND PUBLIC PARTICIPATION Outcome 9
Output 1 IMPLEMENT A DIFFERENTIATED APPROACH TO MUNICIPAL FINANCING, PLANNING AND SUPPORT Output 3 DEEPEN DEMOCRACY THROUGH A REFINED WARD COMMITTEE MODEL
Functional Area/ Development Priorities
Strategic Objective
Baseline 2018/2019
Annual Performance Target
Budget Key Performance Indicator
KPI Type
Quarterly projections/process indicator
Portfolio Of Evidence
Weightings
Current Status
Intergovernmental Relations
To promote Good Governance and Public Participation
4 IGR and Corporate Governance Forums
8 (Inter-Governmental Relations) IGR and Corporate Governance forums facilitated: 4 x Political IGR 4 X MM's Forum
KPI 46 Number of IGR and Corporate Governance Forums facilitated
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Q1 1 MM’s Forum; 1 Political Forum;
Programme; Attendance Register; Report
Q2 1 MM’s Forum; 1 Political Forum
Q3 1 MM’s Forum; 1 Political Forum
Q4 1 MM’s Forum; 1 Political Forum
23 B2B Reports 12 B2B Reports submitted to DLG, HS & Traditional Affairs and COGTA by 30 June 2020
OPEX KPI 47 Number of B2B reports submitted to DLG, HS & Traditional Affairs and COGTA by 30 June 2020
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Q1 3 Back-to-Basis Reports
B2B Reports; Acknowledgement letters
Q2 3 Back-to-Basis Reports
Q3 3 Back-to-Basis Reports
Q4 3 Back-to-Basis Reports
3 Stakeholder Consultative meetings
3 Stakeholder consultative meetings held to by 30 June 2020 1 Farmers Unions, 1 Dikgosi, 1 Organised Business
OPEX KPI 48 Number of Stakeholder consultative meetings held
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Q1
Programme; Attendance Register; Reports
Q2
Q3 1 Dikgosi
Q4 1 Farmers Unions; 1 Organised Business
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National LG Priorities
GOVERNANCE/PUBLIC PARTICIPATION
KPA GOOD GOVERNANCE AND PUBLIC PARTICIPATION Outcome 9
Output 1 IMPLEMENT A DIFFERENTIATED APPROACH TO MUNICIPAL FINANCING, PLANNING AND SUPPORT Output 3 DEEPEN DEMOCRACY THROUGH A REFINED WARD COMMITTEE MODEL
Functional Area/ Development Priorities
Strategic Objective
Baseline 2018/2019
Annual Performance Target
Budget Key Performance Indicator
KPI Type
Quarterly projections/process indicator
Portfolio Of Evidence
Weightings
Current Status
Intergovernmental Relations
To promote Good Governance and Public Participation
None 2 District Governance Lekgotla to be facilitated by June 2020
KPI 49 Number of District Governance Lekgotla facilitated by June 2020
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Q1 1 District Governance Attendance Register & Reports
Q2
Q3
Q4 1 District Governance
1 Strategic Plan document for 2020/2021 developed and approved by Council by June 2020
KPI 50 Strategic Plan Document 2020/2021 developed and approved by Council
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Q1 Strategic Plan Document; Council Resolution
Q2 Q3 Q4 Council approves Strategic Plan
2021
Performance Management System
To promote Planning and Performance Management
2018/2019 Performance Agreements signed by Senior Managers
7 Performance Agreements Signed and submitted to Council by 30 July 2019 (Municipal Manager, Chief Audit Executive, Technical Services, Chief Financial Officer, Community Services, Corporate Resource Services; Planning & Development)
OPEX KPI 51 Number of Performance Agreements to be signed by Section 54(a) and Section 56 Managers and submitted to Council
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Q1 7 Performance Agreements signed and submitted to Council
Signed Performance Agreements and Council Resolution Acknowledgement from MEC: DLG&HS
Q2
Q3
Q4
NGAKA MODIRI MOLEMA DISTRICT MUNICIPALITY
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National LG Priorities
GOVERNANCE/PUBLIC PARTICIPATION
KPA GOOD GOVERNANCE AND PUBLIC PARTICIPATION Outcome 9
Output 1 IMPLEMENT A DIFFERENTIATED APPROACH TO MUNICIPAL FINANCING, PLANNING AND SUPPORT Output 3 DEEPEN DEMOCRACY THROUGH A REFINED WARD COMMITTEE MODEL
Functional Area/ Development Priorities
Strategic Objective
Baseline 2018/2019
Annual Performance Target
Budget Key Performance Indicator
KPI Type
Quarterly projections/process indicator
Portfolio Of Evidence
Weightings
Current Status
Performance Management System
To promote Planning and Performance Management
2017/2018 Annual Report
2018/2019 Annual Report tabled to Council by 31 January 2020
R 300 000.00 KPI 52 Tabling of the Annual Report for 2018/2019 to Council
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Q1 Unaudited 2018/2019 Draft Annual Report tabled to council on the 31 August 2019
Draft 2018/2019 Annual Report; Council Resolution; Annual Report 2015/19; Council Resolution
Q2 Q3 Annual Report tabled to council in
31 January 2020 Q4
2018/2019 Mid-Year Performance Reports
Mid-Year Performance Report submitted to Council by 31 January 2020
OPEX KPI 53 Submission of the Mid-Year Performance Report to Council
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Q2 Q3 Mid-Year Performance Report
submitted to Council by 31 January 2020
Q4
2018/2019 Reviewed SDBIP
Reviewed 2019/20 SDBIP approved by Council by 28 February 2020
OPEX KPI 54 2019/2020 SDBIP Review approved by Council O
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Q1 2019/2020 Reviewed SDBIP; Council Resolution
Q2
Q3 2019/2020 Reviewed SDBIP approved by Council
Q4 4 Quarterly reviews conducted
2 performance reviews conducted by 30 June 2020
R 100 000.00 KPI 55 Number of performance reviews conducted
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Q1 Annual Performance Review 2018/19
Consolidated Mid-Term Reports, Annual Performance Report
Q2 Q3 Mid-Term review conducted
Q4
NGAKA MODIRI MOLEMA DISTRICT MUNICIPALITY
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National LG Priorities
GOVERNANCE/PUBLIC PARTICIPATION
KPA GOOD GOVERNANCE AND PUBLIC PARTICIPATION Outcome 9
Output 1 IMPLEMENT A DIFFERENTIATED APPROACH TO MUNICIPAL FINANCING, PLANNING AND SUPPORT Output 3 DEEPEN DEMOCRACY THROUGH A REFINED WARD COMMITTEE MODEL
Functional Area/ Development Priorities
Strategic Objective
Baseline 2018/2019
Annual Performance Target
Budget Key Performance Indicator
KPI Type
Quarterly projections/process indicator Portfolio Of Evidence
Weightings
Current Status
Enhance Communications
To enhance communication and public participation
60 Communications activities implemented
60 Number of Communications activities implemented by 30 June 2020
R 1.9 m KPI 56 Number of Communication Activities to be implemented
Pro
cess
Ind
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Q1 15 Activities (1) 3 Media Engagement ; (2) 1 Development and Printing of Quarterly External Modiri Newsletters; (3) 3 Media Bulk Buying; (4) 1 Outdoor Advertisement; (5) 4 District Entrances and Exit Signage; (6) 3 Municipal Signage
(1) Proof of media invite, statements, articles, invitations, programmes, adverts, interviews audios; (2) attendance registers, programmes/agendas, pictures (3) Proof of outdoor advertising; (5) copy of developed, e-published and printed Modiri Magazine - External Quarterly Newsletter; (6) Proof of signage..
Q2 15 Activities (1) 3 Media Engagements ; (2) 1 Development and Printing of Quarterly External Modiri Newsletters; (3) 3 Media Bulk Buying; (4) 1 Outdoor Advertisement; (5) 4 District Entrances and Exit Signage; (6) 3 Municipal Signage
Q3 15 Activities (1) 3 Media Engagements ; (2) 1 Development and Printing of Quarterly External Modiri Newsletters; (3) 3 Media Bulk Buying; (4) 1 Outdoor Advertisement; (5) 4 District Entrances and Exit Signage; ; (6) 3 Municipal Buildings Signage
Q4 15 Activities (1) 3 Media Engagements ; (2) 1 Development and Printing of Quarterly External Modiri Newsletters; (3) 3 Media Bulk Buying; (4) 1 Outdoor Advertisement; (5) 2 District Entrances and Exit Signage; (6) 3 Municipal Signage
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National LG Priorities
GOVERNANCE/PUBLIC PARTICIPATION
KPA GOOD GOVERNANCE AND PUBLIC PARTICIPATION Outcome 9
Output 1 IMPLEMENT A DIFFERENTIATED APPROACH TO MUNICIPAL FINANCING, PLANNING AND SUPPORT Output 3 DEEPEN DEMOCRACY THROUGH A REFINED WARD COMMITTEE MODEL
Functional Area/ Development Priorities
Strategic Objective
Baseline 2018/2019
Annual Performance Target
Budget Key Performance Indicator
KPI Type
Quarterly projections/process indicator Portfolio Of Evidence
Weightings
Current Status
Enhance Communications
To enhance communication and public participation
12 Website Management Report submitted to the Municipal Manager
4 quarterly Reports on Hosting, Technical Support, Upgrades and Maintenance of the Municipal Website by 30 June 2020
R 160 000 KPI 57 Number of documents to be uploaded
Pro
cess
Ind
icat
or
Q1 Performance Agreements; Annual Performance Report; Mid-Term Performance Report
(1)Proof of Website Updates layout; (2)Screen-munch of uploaded contents and document.
Q2 Q1 Performance Reports; Sect 52(d) Reports;
Q3 Q2 Performance Reports; Annual Report; Reviewed SDBIP; Adjustment Budget; Draft IDP; Sect (52) Reports
Q4 Q3 Performance Reports; Final Budget 2020/21; Final IDP; Final SDBIP 2020/21
Enhance Customer Care Relations
To promote and implement Batho Pele Principles
New District Wide Community Satisfactory Survey conducted and results submitted to Council by 30 June 2020
R 500 000 KPI 58 Conduct district wide Community Satisfaction Survey and submit to Council
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Q1 (1) Copy of Questionnaire, attendance register, Copy Customer Survey Report; (2)Outreach Programme activation plan, photos, attendance register
Q2
Q3
Q4 (1)Consolidate the Community Satisfactory Survey final results for Council; (2) 1 Customer Care Outreach Programme
NGAKA MODIRI MOLEMA DISTRICT MUNICIPALITY
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National LG Priorities
GOVERNANCE/PUBLIC PARTICIPATION
KPA GOOD GOVERNANCE AND PUBLIC PARTICIPATION Outcome 9
Output 1 IMPLEMENT A DIFFERENTIATED APPROACH TO MUNICIPAL FINANCING, PLANNING AND SUPPORT Output 3 DEEPEN DEMOCRACY THROUGH A REFINED WARD COMMITTEE MODEL
Functional Area/ Development Priorities
Strategic Objective
Baseline 2018/2019
Annual Performance Target
Budget Key Performance Indicator
KPI Type
Quarterly projections/process indicator Portfolio Of Evidence
Weightings Current Status
Good Governance To promote good governance and Community Participation
Public Participation and Community outreach programs/events supported I Imbizo, 0 Letsema, 0 mandela day event held
8 Mayoral Imbizo's and Programmes held by 30 June 2020
R 1.3m KPI 59 Number of Mayoral Imbizo's and Programmes Held by 30 June 2020
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Q1 2 – Mandela Life Celebration Attendance registers and report
Q2 1 – Ngaka Modiri Molema Life Celebration (NMMDM)
Q3 2 – Water Month and Community Consultative Meeting (District Wide)
Q4 3 – Community Consultation Meetings, Project Handovers, City Of Freedom with SANDF (District Wide)
4 Reports 10 Special Programs facilitated by 30 June 2020
R 1.6m KPI 60 Number of Special Programs facilitated by 30 June 2020
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Q1 Women’s Month Celebration; Youth Development Programme; supporting NPO’s and NGO’s related to Special Programmes
Copies of reports
Q2 Disability Celebrations Month; Youth
Development Programme; supporting NPO’s and NGO’s related to Special Programmes; HIV/AIDS Programmes; supporting Women and Children Programmes
Q3 Youth Development Programme; supporting NPO’s and NGO’s related to Special Programmes
Q4 Youth Development Programme; supporting NPO’s and NGO’s related to Special Programmes
1 District Governance Lekgotla
1 District Governance Lekgotla held by June 2020
R 600 000.00 KPI 61 Number of District Governance Lekgotla held by 30 June 2020
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Q1 Attendance register, Comprehensive report
Q2
Q3
Q4 1 District Governance Lekgotla
NGAKA MODIRI MOLEMA DISTRICT MUNICIPALITY
Page | 231
National LG Priorities
GOVERNANCE/PUBLIC PARTICIPATION
KPA GOOD GOVERNANCE AND PUBLIC PARTICIPATION Outcome 9
Output 1 IMPLEMENT A DIFFERENTIATED APPROACH TO MUNICIPAL FINANCING, PLANNING AND SUPPORT Output 3 DEEPEN DEMOCRACY THROUGH A REFINED WARD COMMITTEE MODEL
Functional Area/ Development Priorities
Strategic Objective
Baseline 2018/2019
Annual Performance Target
Budget Key Performance Indicator
KPI Type
Quarterly projections/process indicator Portfolio Of Evidence
Weightings
Current Status
Promote Good Governance
To promote good governance and Community Participation
5 Public Participation Programmes supported
2 Public Participation Programmes supported by June 2020
R 800 000.00 KPI 62 Number of Public Participation Programmes supported by 30 June 2020
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r Q1 1 Public Participation Programme supported in Mahikeng Local Municipality
Attendance Registers; Programs
Q2
Q3
Q4 1 Public Participation Programme supported in Ramotshere Moiloa Local Municipality
1 Moral Regeneration Campaign conducted
1 Moral Regeneration Awareness Campaign conducted by June 2020
R 300 000.00 KPI 63 Moral Regeneration Awareness Campaign and prayer conducted by June 2020
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r Q1 Attendance registers; and Programs
Q2 1 Moral Regeneration Awareness Campaign conducted
Q3
Q4
10 by 10 Anti-Corruption Campaign
1 Community Awareness Campaign conducted by 30 June 2019 (Anti- Corruption policy)
KPI 64 Number of Community Awareness Campaign on Anti -Corruption Policy conducted
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Q1 Attendance registers and minutes of meeting
Q2
Q3
Q4
1 training on standing rules and orders
2 programmes coordinated and facilitated by June 2020
R 650 000.00 KPI 65 Number of programmes to capacitate Cllrs, coordinated and facilitated by June 2020
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r Q1 1 Training on ICT Report, attendance registers and Programmes
Q2
Q3 Financial Planning on: Estate Planning
Q4
NGAKA MODIRI MOLEMA DISTRICT MUNICIPALITY
Page | 232
National LG Priorities
GOVERNANCE/PUBLIC PARTICIPATION
KPA GOOD GOVERNANCE AND PUBLIC PARTICIPATION Outcome 9
Output 1 IMPLEMENT A DIFFERENTIATED APPROACH TO MUNICIPAL FINANCING, PLANNING AND SUPPORT Output 3 DEEPEN DEMOCRACY THROUGH A REFINED WARD COMMITTEE MODEL
Functional Area/ Development Priorities
Strategic Objective
Baseline 2018/2019
Annual Performance Target
Budget Key Performance Indicator
KPI Type
Quarterly projections/process indicator
Portfolio Of Evidence
Weightings
Current Status
Promote Good Governance
To promote good governance and Community Participation
2 Speakers forums facilitated
4 Speakers forums facilitated by June 2020
R 150 000.00 KPI 66 Number of Speakers forums facilitated by June 2020
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Q1 2 Speakers forum by end Sept 2019
Attendance Registers and Programmes
Q2 2 Speakers forums by end Dec 2019
Q3 2 Speakers forums by end March 2020
Q4 2 Speakers forums by end June 2020
1 Chief Whip Forum
4 Chief Whips Forums facilitated by end of June 2020
R 250 000 KPI 67 Number Chief Whips Forums held by June 2020
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Q1 1 Chief Whip Forum Conducted by end Sept 2019
Registers and Agenda
Q2 1 Chief Whip Forum Conducted by end Dec 2019
Q3 1 Chief Whip Forum Conducted by end March 2020
Q4 1 Chief Whip Forum Conducted by end June 2020
2017/2018 MPAC oversight report approved by Council on the 31st March 2019
2018/2019 MPAC oversight report approved by Council on the 31st March 2020
R 600 000 KPI 68 Approval MPAC oversight report by the 31st March 2020
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Q1 Council Resolution; MPAC oversight report
Q2
Q3 MPAC Public Participation program conducted
Q4
NGAKA MODIRI MOLEMA DISTRICT MUNICIPALITY
Page | 233
NGAKA MODIRI MOLEMA DISTRICT MUNICIPALITY
Page | 234
