2020/2021 DRAFT SERVICE DELIVERY & BUDGET ... - MFMA

2020/2021 DRAFT SERVICE DELIVERY & BUDGET IMPLEMENTATION PLAN Vision

By 2036 Ray Nkonyeni will be a prime tourist-friendly; economically diversified and smart Municipality with equitable access to opportunities and services in a safe and healthy environment

Mission

The Municipality is committed to create an enabling environment for the establishment of agricultural; maritime; leading tourism and industrial hubs to create business and employment opportunities for sustainable development and improved quality of lives through shared vision; smart service delivery solutions and collaboration with stakeholders

Table of Contents

1. Legislated Framework ... 3

2. Strategic Objectives ... 5

3. 2020/2021 Monthly Financial Projections ... 7

4. 2020/2021 Revenue by Source ... 8

5. 2020/2021 Capital Expenditure ... 10

6. 3-5 year infrastructure plan ... 12

7. 2020/2021 SDBIP Quarterly Evaluation Process: ... 20

8. 2020 – 2021 Departmental Scorecards ... 21

1. Legislated Framework

The Municipal Finance Management Act (MFMA) No 56 of 2003 requires that municipalities prepare a Service Delivery and Budget Implementation Plan

(SDBIP) as a strategic financial management tool to ensure that budgetary decisions that are adopted by municipalities for the financial year are aligned with their strategic planning tool, the Integrated Development Plan (IDP). The SDBIP is a contract between Council, administration & community. It gives effect to the IDP and budget of the municipality.

The municipal budget shall give effect to the strategic objectives contained in the IDP. The SDBIP shall contain details on the execution of the budget & information on programmes & projects. There should be regular reporting on progress on the programmes or projects hence the performance evaluation have been indicated in the document. The SDBIP intends to empower councilors to perform their oversight responsibility better.

Section 69(3)(a) of the Municipal Finance Management Act, Act 56 of 2003( MFMA) requires the Accounting Officer to submit a draft Service Delivery and Budget Implementation Plan (SDBIP) to the Mayor:

 no later than 14 days after the approval of the Budget and drafts of the performance agreements as required in terms of Section 57 (1) (b) of the Municipal Systems Act, Act 32 of 2000.

 The Mayor must subsequently approve the SDBIP no later than 28 days after the approval of the Budget in accordance with section 53(1)(c)(ii) of the MFMA

Section 1 of the MFMA defines the SDBIP as:

“ a detailed plan approved by the mayor of a municipality in terms of section 53(1)(c)(ii) for implementing the municipality's delivery of services and the execution of its annual budget and which must include the following:

 Projections for each month

 Revenue to be collected by source; and

 Operational and capital expenditure by vote

 Service Delivery targets and performance indicators for each quarter.”

The SDBIP is a one – year detailed implementation plan which gives effect to the IDP and Budget of the Municipality.

It is a contract between the administration, Council and community expressing the goals and objectives set by Council as quantifiable outcomes that can be implemented by the administration over the next twelve months. This provides the basis of measuring the performance in service delivery against end year targets and implementing budget.

The five necessary components are:

1. Monthly projections of revenue to be collected for each month

2. Monthly projections of expenditure (operating and capital) and revenue for each vote 3. Quarterly projections of service delivery targets and performance indicators

4. Ward information for expenditure and service delivery

5. Detailed capital works plan broken down by ward over three years

PURPOSE OF THE SDBIP

The Service Delivery and Budget Implementation Plan (SDBIP) is a detailed annual financial plan for implementing services using the approved budget for 2020/2021. This annual service delivery plan called the SDBIP is based on the approved IDP and Budget. The SDBIP serves as a contract between the municipality and the community on the services that the municipality commits to deliver over the twelve (12) months. It also helps to hold the municipality and its management accountable for the performance on the mentioned programmes and projects.

BACKGROUND

The MFMA prescribes that each municipality must compile its SDBIP. The Mayor of the municipality is required to approve the SDBIP within 28 days after the approval of the budget and table the same at a Municipal Council meeting and made public no later than 14 days after approval for information. National Treasury’s MFMA Circular No.13 further states that the SDBIP is a layered plan, once the top-layer targets have been set as in this document, the various departments of the municipality develop the next lower-level. The organisation of the SDBIP is in terms of the prescribed Key Performance Areas:

 Service Delivery

 Municipal Transformation and Organisational Development

 Local Economic Development

 Municipal Financial Viability and Management

 Good Governance and Public Participation

 Cross Cutting Issues MONITORING AND EVALUATION

The Organisational Performance Management System (OPMS) Framework and Policy were approved by Council. The performance management system makes provisions for the Quarterly and Mid-year performance reporting and reviews on the implementation of the SDBIP. The key focus areas and service delivery targets for 2020/2021 are outlined in the departmental scorecards of this plan.

GENERAL KEY PERFORMANCE INDICATORS

The following key performance indicators will be complied with as prescribed in terms of Section 10 of the Local Government Municipal Planning and Performance Management Regulations, 2001:

 The percentage of households with access to basic level of water, sanitation, electricity and solid waste removal;

 The percentage of households earning less than R1100 per month with access to basic free services;

 The percentage of a municipality’s capital budget actually spent on capital projects identified for a particular financial year in terms of the municipality’s integrated development plan;

 The number of jobs created through the municipality’s local economic development initiatives including capital projects;

 The number of people from employment equity target groups employed in the three highest levels of management in compliance with a municipality’s approved employment equity plan;

 The percentage of a municipality’s budget actually spent on implementing its workplace skills plan; and

 Financial viability as expressed by the ratios in the gazette.

2. Strategic Objectives

A. Municipal Transformation and Organisational Development i. To foster effective and efficient Inter-Governmental Relations (IGR) ii. To ensure on-going human resource development

iii. To attract and retain skilled employees

iv. To be an innovative organisation with improved performance

B. Service Delivery

i. To ensure existing infrastructure is maintained and improved.

ii. To provide access to basic services

iii. To extend the provision of basic services and infrastructure to rural areas.

iv. To improve delivery of capital projects through investment in infrastructure development v. To facilitate the provision of housing

C. Local Economic Development

i. To grow the economy of the municipality through investment attraction and tourism development ii. To create an enabling environment to grow businesses, cooperatives and SMMEs

iii. To drive job creation initiatives

iv. To promote township and rural development through nodal developments especially for commerce and industries v. To promote sustainable livelihoods and enhance the fight against poverty

vi. To facilitate participation of youth and previously disadvantaged individuals in the economy

D. Good Governance and Public Participation i. To promote a culture of participatory democracy

ii. To develop and review organizational policies to be in line with current national and provincial agenda iii. To develop an ethical organisation which is fraud and corruption free

iv. To promote and uphold principles of good governance and legal compliance v. To ensure a safe and crime free municipality.

vi. To promote human rights and social upliftment of vulnerable groups and address moral regeneration need vii. To promote and safeguard the municipal brand

E. Municipal Financial Viability and Management

i. To ensure efficient and effective management of council assets and properties.

ii. To improve revenue, cost reduction and management of debt

iii. To ensure expenditure on long-term capital infrastructure project plans F. Cross Cutting Issues

i. To create sustainable and resilient settlements

ii. To promote and enhance planned development and land administration iii. To promote green economy

3. 2020/2021 Monthly Financial Projections

Description Ref

R thousand July August Sept. October November December January February March April May June Budget Year

2020/21 Revenue - Functional

Governance and administration 58 841 58 841 58 841 58 841 58 841 58 841 58 841 58 841 58 841 58 841 58 841 58 841 706 093 Ex ecutiv e and council 18 538 18 538 18 538 18 538 18 538 18 538 18 538 18 538 18 538 18 538 18 538 18 538 222 456 Finance and administration 40 303 40 303 40 303 40 303 40 303 40 303 40 303 40 303 40 303 40 303 40 303 40 303 483 637 Internal audit – – – – – – – – – – – – – Community and public safety 10 044 10 044 10 044 10 044 10 044 10 044 10 044 10 044 10 044 10 044 10 044 10 044 120 530

Community and social serv ices 1 264 1 264 1 264 1 264 1 264 1 264 1 264 1 264 1 264 1 264 1 264 1 264 15 169 Sport and recreation 9 9 9 9 9 9 9 9 9 9 9 9 112 Public safety 2 326 2 326 2 326 2 326 2 326 2 326 2 326 2 326 2 326 2 326 2 326 2 326 27 913 Housing 6 445 6 445 6 445 6 445 6 445 6 445 6 445 6 445 6 445 6 445 6 445 6 445 77 336 Health – – – – – – – – – – – – – Economic and environmental services 6 470 6 470 6 470 6 470 6 470 6 470 6 470 6 470 6 470 6 470 6 470 6 470 77 643

Planning and dev elopment 1 032 1 032 1 032 1 032 1 032 1 032 1 032 1 032 1 032 1 032 1 032 1 032 12 386 Road transport 5 414 5 414 5 414 5 414 5 414 5 414 5 414 5 414 5 414 5 414 5 414 5 414 64 964 Env ironmental protection 24 24 24 24 24 24 24 24 24 24 24 24 292 Trading services 21 136 21 136 21 136 21 136 21 136 21 136 21 136 21 136 21 136 21 136 21 136 21 136 253 634 Energy sources 14 793 14 793 14 793 14 793 14 793 14 793 14 793 14 793 14 793 14 793 14 793 14 793 177 521 Water management – – – – – – – – – – – – – Waste w ater management – – – – – – – – – – – – – Waste management 6 343 6 343 6 343 6 343 6 343 6 343 6 343 6 343 6 343 6 343 6 343 6 343 76 113 Other 699 699 699 699 699 699 699 699 699 699 699 699 8 384 Total Revenue - Functional 97 190 97 190 97 190 97 190 97 190 97 190 97 190 97 190 97 190 97 190 97 190 97 190 1 166 284

132 818

132 818 132 818 132 818 132 818 132 818 132 818 132 818 132 818 132 818 Expenditure - Functional

Governance and administration 29 576 29 576 29 576 29 576 29 576 29 576 29 576 29 576 29 576 29 576 29 576 29 576 354 916 Ex ecutiv e and council 13 076 13 076 13 076 13 076 13 076 13 076 13 076 13 076 13 076 13 076 13 076 13 076 156 911 Finance and administration 16 500 16 500 16 500 16 500 16 500 16 500 16 500 16 500 16 500 16 500 16 500 16 500 198 005 Internal audit – – – – – – – – – – – – – Community and public safety 20 399 20 399 20 399 20 399 20 399 20 399 20 399 20 399 20 399 20 399 20 399 20 399 244 785

Community and social serv ices 2 659 2 659 2 659 2 659 2 659 2 659 2 659 2 659 2 659 2 659 2 659 2 659 31 914 Sport and recreation 749 749 749 749 749 749 749 749 749 749 749 749 8 984 Public safety 9 282 9 282 9 282 9 282 9 282 9 282 9 282 9 282 9 282 9 282 9 282 9 282 111 385 Housing 7 709 7 709 7 709 7 709 7 709 7 709 7 709 7 709 7 709 7 709 7 709 7 709 92 502 Health – – – – – – – – – – – – – Economic and environmental services 13 301 13 301 13 301 13 301 13 301 13 301 13 301 13 301 13 301 13 301 13 301 13 301 159 611

Planning and dev elopment 4 974 4 974 4 974 4 974 4 974 4 974 4 974 4 974 4 974 4 974 4 974 4 974 59 694 Road transport 6 181 6 181 6 181 6 181 6 181 6 181 6 181 6 181 6 181 6 181 6 181 6 181 74 175 Env ironmental protection 2 145 2 145 2 145 2 145 2 145 2 145 2 145 2 145 2 145 2 145 2 145 2 145 25 742 Trading services 24 809 24 809 24 809 24 809 24 809 24 809 24 809 24 809 24 809 24 809 24 809 24 809 297 704 Energy sources 10 692 10 692 10 692 10 692 10 692 10 692 10 692 10 692 10 692 10 692 10 692 10 692 128 309 Water management – – – – – – – – – – – – – Waste w ater management – – – – – – – – – – – – – Waste management 14 116 14 116 14 116 14 116 14 116 14 116 14 116 14 116 14 116 14 116 14 116 14 116 169 394 Other 1 051 1 051 1 051 1 051 1 051 1 051 1 051 1 051 1 051 1 051 1 051 1 051 12 612 Total Expenditure - Functional 89 136 89 136 89 136 89 136 89 136 89 136 89 136 89 136 89 136 89 136 89 136 89 135 1 069 628

Surplus/(Deficit) before assoc. 8 055 8 055 8 055 8 055 8 055 8 055 8 055 8 055 8 055 8 055 8 055 8 055 96 656

Share of surplus/ (deficit) of

associate – –

Surplus/(Deficit) 1 8 055 8 055 8 055 8 055 8 055 8 055 8 055 8 055 8 055 8 055 8 055 8 055 96 656 Budget Year 2020/21

Medium Term Revenue and

4. 2020/2021 Revenue by Source

MONTHLY CASH FLOWS

R thousand July August Sept. October November December January February March April May June Budget Year

2020/21 Cash Receipts By Source

Property rates 41 528 41 528 41 528 41 528 41 528 41 528 41 528 41 528 41 528 41 528 41 528 41 528 498 338 Serv ice charges - electricity rev enue 11 955 11 955 11 955 11 955 11 955 11 955 11 955 11 955 11 955 11 955 11 955 11 955 143 458 Serv ice charges - w ater rev enue – – – – – – – – – – – – – Serv ice charges - sanitation rev enue – – – – – – – – – – – – – Serv ice charges - refuse rev enue 6 008 6 008 6 008 6 008 6 008 6 008 6 008 6 008 6 008 6 008 6 008 6 008 72 094 Rental of facilities and equipment 245 245 245 245 245 245 245 245 245 245 245 245 2 942 Interest earned - ex ternal inv estments 440 440 440 440 440 440 440 440 440 440 440 440 5 284 Interest earned - outstanding debtors 1 656 1 656 1 656 1 656 1 656 1 656 1 656 1 656 1 656 1 656 1 656 1 656 19 868 Div idends receiv ed – – – – – – – – – – – – – Fines, penalties and forfeits 1 196 1 196 1 196 1 196 1 196 1 196 1 196 1 196 1 196 1 196 1 196 1 196 14 352 Licences and permits 203 203 203 203 203 203 203 203 203 203 203 203 2 442 Agency serv ices 841 841 841 841 841 841 841 841 841 841 841 841 10 096 Transfer receipts - operational 27 147 27 147 27 147 27 147 27 147 27 147 27 147 27 147 27 147 27 147 27 147 27 147 325 760 Other rev enue 653 653 653 653 653 653 653 653 653 653 653 653 7 831 Cash Receipts by Source 91 872 91 872 91 872 91 872 91 872 91 872 91 872 91 872 91 872 91 872 91 872 91 872 1 102 464 Other Cash Flows by Source

Transfer receipts - capital 7 303 7 303 7 303 7 303 7 303 7 303 7 303 7 303 7 303 7 303 7 303 7 303 87 638 Transfers and subsidies - capital

(monetary allocations) (National / Prov incial Departmental Agencies,

Households, Non-profit Institutions, Priv ate – – – – – – – – – – – – – Proceeds on disposal of PPE – – – – – – – – – – – – – Short term loans 57 57 57 57 57 57 57 57 57 57 57 57 680

Borrow ing long term/refinancing –

Increase (decrease) in consumer deposits 17 17 17 17 17 17 17 17 17 17 17 17 200 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 99 248 99 248 99 248 99 248 99 248 99 248 99 248 99 248 99 248 99 248 99 248 99 248 1 190 982

Budget Year 2020/21 Medium

Term

5. 2020/2021 Capital Expenditure

Description Ref

R thousand July August Sept. October Nov. Dec. January Feb. March April May June Budget Year

2020/21 Capital Expenditure - Functional 1

Governance and administration 137 137 137 137 137 137 137 137 137 137 137 (635) 867 Ex ecutiv e and council 8 8 8 8 8 8 8 8 8 8 8 8 96 Finance and administration 129 129 129 129 129 129 129 129 129 129 129 (643) 771 Internal audit – – – – – – – – – – – – – Community and public safety 777 777 777 777 777 777 777 777 777 777 777 770 9 316

Community and social serv ices 578 578 578 578 578 578 578 578 578 578 578 578 6 939 Sport and recreation 11 11 11 11 11 11 11 11 11 11 11 11 130 Public safety 187 187 187 187 187 187 187 187 187 187 187 187 2 240 Housing 1 1 1 1 1 1 1 1 1 1 1 1 7 Health 1 1 1 1 1 1 1 1 1 1 1 (6) – Economic and environmental services 2 680 2 680 2 680 2 680 2 680 2 680 2 680 2 680 2 680 2 680 2 680 2 680 32 163

Planning and dev elopment 958 958 958 958 958 958 958 958 958 958 958 958 11 497 Road transport 1 664 1 664 1 664 1 664 1 664 1 664 1 664 1 664 1 664 1 664 1 664 1 664 19 970 Env ironmental protection 58 58 58 58 58 58 58 58 58 58 58 58 696 Trading services 3 147 3 147 3 147 3 147 3 147 3 147 3 147 3 147 3 147 3 147 3 147 3 147 37 768 Energy sources 3 008 3 008 3 008 3 008 3 008 3 008 3 008 3 008 3 008 3 008 3 008 3 008 36 096 Water management – – – – – – – – – – – – – Waste w ater management – – – – – – – – – – – – – Waste management 139 139 139 139 139 139 139 139 139 139 139 139 1 672 Other – – – – – – – – – – – – – Total Capital Expenditure -

Functional 2

6 741

6 741 6 741 6 741 6 741 6 741 6 741 6 741 6 741 6 741 6 741 5 963 80 115 Budget Year 2020/21

Medium Term Revenue and Expenditure

LEFT BLANK INTENTIONALLY

6. 3-5 year infrastructure plan

CAPITAL INVESTMENT PLAN

PROGRAMME/PROJECTS PHASED ANNUAL INVESTMENT COSTS FUNDING

NUMBER PRIORITY

LOCATION TOTAL

ESTIMATED

COST 2017/18 2018/19 2019/20 2020/2021 2021/22

AMOUNT RECEIVED

FROM OTHER SOURCES

FUNDING OF

INTERNAL

HOD COM

S2: SUSTAINING THE NATURAL AND BUILT

ENVIRONMENT R

1,000,000.00 R

- R

1,000,000.00

- R

- R

- R

-

1.1.

Preparation of a Strategic Environmental Assessment (SEA)

Entire

Municipality R

1,000,000.00 R - R

1,000,000.00 R

- R

- R

- R

- INTERNAL X

S2: CORRIDOR

DEVELOPMENT R

159,154,817.00 R

- R

70,273,214.00

59,671,711.00 R

25,200,000.00 R

-

R

-

2 ROADS

2.1. CLUSTER 1 R

19,526,932.00 R - R

4,026,932.00 R

8,500,000.00 R

7,000,000.00 R

- R

-

2.1.1. Esidlidlini Pedestrian

Bridge Ward 31 R

1,727,825.00 R

- R

227,825.00 R

500,000.00 R

1,000,000.00 R

- R

- X

2.1.2. Shibase Road Ward 32 R

1,303,907.00 R - R

1,303,907.00 R

- R

- R

- R

- X

2.1.3. Shibase Pedestrian Bridge (Near Sima`s

House) Ward 32 R

2,527,825.00 R

- R

227,825.00 R

1,500,000.00 R

800,000.00 R

- R

- X

2.1.4. Kawuseni Vehicular Bridge (Mgundlwa

School) Ward 35 R

1,650,000.00 R

- R

150,000.00 R

1,000,000.00 R

500,000.00 R

- R

- X

2.1.5. Kawuseni Vehicular Bridge (Bhuka

School) Ward 35 R

1,650,000.00 R

- R

150,000.00 R

1,000,000.00 R

500,000.00 R

- R

- X

2.1.6.

Kawuseni Pedestrian Bridge (Shibe to Mvolomi School)

Ward 35 R

2,383,900.00 R - R

1,133,900.00 R

500,000.00 R

750,000.00 R

- R

- X

2.1.7.

Kawuseni Pedestrian Bridge (Godloza to Mbomvini School)

Ward 35 R

2,050,000.00 R

- R

150,000.00 R

1,000,000.00 R

900,000.00 X

PROGRAMME/PROJECTS PHASED ANNUAL INVESTMENT COSTS FUNDING

NUMBER PRIORITY

LOCATION TOTAL

ESTIMATED

COST 2017/18 2018/19 2019/20 2020/2021 2021/22

AMOUNT RECEIVED

FROM OTHER SOURCES

OF

FUNDING

INTERNAL

HOD COM

2.1.8. Khandalesizwe to Ntshebeni

Pedestrian Bridge Ward 33 R

1,777,825.00 R

- R

227,825.00 R

1,000,000.00 R

550,000.00 R

- R

- X

2.1.9. Gadlogadla to Makhanya Road

Vehicular Bidge Ward 33 R

2,227,825.00 R

- R

227,825.00 R

1,000,000.00 R

1,000,000.00 R

- R

- X

2.1.0. Qashela to Munga

Pedestrian Bridge Ward 33 R

2,227,825.00 R

- R

227,825.00 R

1,000,000.00 R

1,000,000.00 R

- R

- X

2.2. CLUSTER 2 R

7,890,324.00 R - R

4,390,324.00 R

2,000,000.00 R

1,500,000.00 R

- R

-

2.2.1. Thokothe Sportsfield

Concrete Road Ward 9 R

4,206,849.00 R - R

3,706,849.00 R

500,000.00 R

- R

- R

- X

2.2.2. Mjweni Pedestrian

Bridge Ward 8 R

1,227,825.00 R

- R

227,825.00 R

500,000.00 R

500,000.00 R

- R

- X

2.2.3. Nyanisweni &

Dumezweni

Pedestrian Bridge Ward 8 R

1,227,825.00 R

- R

227,825.00 R

500,000.00 R

500,000.00 R

- R

- X

2.2.4. Maqobo Pedestrian Bridge (Links Wards 8 & 9)

Links Wards 8

& 9 R

1,227,825.00 R

- R

227,825.00 R

500,000.00 R

500,000.00 R

- R

- X

2.3. CLUSTER 3 R

6,083,900.00 R - R

4,856,500.00 R

3,550,000.00 R

100,000.00 R

- R

-

2.3.1. Marine Drive/ Knox

Gore Traffic Signal Ward 3/19 R

100,000.00 R

- R

100,000.00 R

- R

- R

- R

- X

2.3.2. Smith Street

Upgrade Ward 6 R

3,672,600.00 R - R

1,822,600.00 R

1,750,000.00 R

100,000.00 R

- R

- X

2.3.3. Mkanti Road Ward 10 R

1,711,300.00 R

- R

911,300.00 R

800,000.00 R

- R

- R

- X

2.3.4. William O Connor Street Steel

Structures R

300,000.00 R

- R

200,000.00 R

100,000.00 R

- R

- R

- X

2.3.5. Thongazi Pedestrian

Bridge Ward 1 R

300,000.00 R - R

1,822,600.00 R

900,000.00 R

- R

- R

- X

2.4. CLUSTER 4 R

14,416,850.00 R - R

5,495,139.00 R

- R

- R

- R

-

2.4.1. Tarring of Nositha

Main Road Ward 27 R

11,728,500.00 R - R

4,556,500.00 R

7,172,000.00 R

- R

- R

- X

2.4.2. Mpakeni Road

Upgrade & Bridge Ward 25 R

2,661,011.00 R

- R

911,300.00 R