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Page 0 of 286 TABLING of the 2016/21 DRAFT INTEGRATED DEVELOPMENT PLAN COJ: COUNCIL 2016-03-18 COJ: MAYORAL COMMITTEE 2016-03-03 COJ: EMT (HOD) 2016-02-22 COJ: GROUP PERFORMANCE AUDITING COMMITTEE 2016-02-01 COJ: OFFICE OF THE EXECUTIVE MAYOR GROUP STRATEGY, POLICY COORDINATION AND RELATIONS TABLING OF THE 2016/21 DRAFT INTEGRATED DEVELOPMENT PLAN (IDP) FOR PUBLIC CONSULTATION ANNEXURE A: 2016/21 Draft Integrated Development Plan (IDP) 1. STRATEGIC THRUST Well Governed and Managed City. 2. OBJECTIVE To table to the Council of the City of Johannesburg Metropolitan Municipality the Draft 2016/21 Integrated Development Plan (IDP), attached as Annexure A and obtain approval to publish the draft IDP in the local media for public comment. To table to the Council of the City of Johannesburg Metropolitan Municipality the draft business plans (budget) of Municipal entities in terms of section of section 87(3) of the Municipal Finance Management Act 56 of 2003. To advise Council to note that the Service Delivery Budget Implementation Plans of internal departments shall be referred to the relevant section 79 (Municipal Systems Act 32 of 2000) oversight committee. 3. BACKGROUND AND LEGISLATIVE REQUIREMENTS Page 0 of 286 COJ: COUNCIL 2016-03-18 COJ: MAYORAL COMMITTEE 2016-03-03 COJ: EMT (HOD) 2016-02-22 COJ: GROUP PERFORMANCE AUDITING COMMITTEE 2016-02-01 COJ: OFFICE OF THE EXECUTIVE MAYOR GROUP STRATEGY, POLICY COORDINATION AND RELATIONS This report provides an overview of the 2016/21 IDP process undertaken by the City, as premised in the Municipal Systems Act 32 of 2000 (MSA). The following is contained in the report: Legislative requirements and compliance therein; Review process undertaken to finalise the 2016/21 IDP; and The MSA outlines the objectives and procedures for integrated planning for municipalities. Section 23 (1) of the Act states that every municipality must undertake developmentally- orientated planning so as to ensure that it – strives to achieve the objects of local government set out in Section 152 of the Constitution; gives effect to its developmental duties as required by Section 153 of the Constitution; and together with other organs of state contributes to the progressive realisation of the fundamental rights contained in Sections 24, 25, 26, 27 and 29 of the Constitution. It further states that municipal councils must: “within a prescribed period after the start of its elected term, adopt a single inclusive and strategic plan for the development of a municipality.” The City adopted its five-year IDP. This IDP was linked to the City’s Municipal Turnaround Strategy (MTS) to address some of the concerns raised by national government on the performance of municipalities. The 2016/21 IDP also outlined the City’s commitment to address essential issues raised by communities. In line with legislation (Section 34 of the MSA), Municipal Budget Circular No. 78 for the 2016/17 MTREF 07 December 2015 states the following: Though an IDP is a five year strategic document of council, municipalities should note that when a new council takes office after each local government election, the norm has been that the first year of such a new council is primarily confined to implementing the last adopted IDP. Subsequent to this, it is normally in the second year of the new council where the newly elected council will adopt its new and thoroughly interrogated and consulted IDP. This process mostly leads to an overlap of the last year of outgoing council into the new council. It is each municipal Page 1 of 286 COJ: COUNCIL 2016-03-18 COJ: MAYORAL COMMITTEE 2016-03-03 COJ: EMT (HOD) 2016-02-22 COJ: GROUP PERFORMANCE AUDITING COMMITTEE 2016-02-01 COJ: OFFICE OF THE EXECUTIVE MAYOR GROUP STRATEGY, POLICY COORDINATION AND RELATIONS council’s prerogative to decide when to approve its annual budget. However, to assist municipalities, National Treasury proposes that councils consider adopting the following approach for their 2016/17 budget process: OUTGOING COUNCIL APPROVES 2016/17 BUDGET 1. Current Mayor prepares a budget schedule that brings the review of the IDP and the tabling of the budget forward to late February or the beginning of March 2016; 2. Community consultations on the annual budget conducted in the remainder of March and early April 2016; 3. Officials complete technical work on annual budget by mid-April 2016; 4. Current council approves annual budget and reviewed IDP before the end of April 2016; and 5. Council implements annual budget from 1 July 2016. BENEFITS Minimises the risk of being without an approved budget at the start of the financial year; Ensures continuity of operations; and Safeguards the financial sustainability of the municipality by ensuring tariff increases are locked in before the start of the financial year. RISKS New council may not concur with the priorities set out in the annual budget approved by the outgoing council, and therefore they may be reluctant to be held accountable for the implementation thereof. MITIGATING FACTORS New council should note the overlapping year of the last year of the IDP into the first year of new council; and Note that MFMA section 28(6) does not allow for tariff increases during the financial year of implementation of the adopted budget. Page 2 of 286 COJ: COUNCIL 2016-03-18 COJ: MAYORAL COMMITTEE 2016-03-03 COJ: EMT (HOD) 2016-02-22 COJ: GROUP PERFORMANCE AUDITING COMMITTEE 2016-02-01 COJ: OFFICE OF THE EXECUTIVE MAYOR GROUP STRATEGY, POLICY COORDINATION AND RELATIONS 4. DISCUSSION 2016/21 IDP The Draft 2016/21 IDP is hereby tabled for Council approval for publication for public comments (refer to Annexure A). The table below outlines the summary of progress against the process plan approved by Council in August 2015, which has guided the development of the 2016/21 IDP: Action Progress Approval of the IDP The IDP and Budget Process Plan was approved by Council in and Budget Process August 2014. Plan by Council Situational Analysis The City embarked on a process to review and refine its plans and Strategic in the context of changing needs and new developments. An Planning Extended Executive Management Team (EEMT) Lekgotla took place on 01-03 October 2015 to reflect on the performance and progress of development initiatives of the current term of office, consolidate implementation plans for flagship programmes and pave the way for crafting the 2016/21 IDP. In 19-21 November 2015, the Mayoral Lekgotla was convened to set the strategic agenda for the City. Provincial engagements also took place to deliberate on alignment issues between the City's programmes and national and provincial imperatives. Development and The priority implementation plans of the City were revised, and submission of draft departments and entities drafted their SDBIPs and business ME business plans plans respectively in preparation for the Technical Budget and departmental Steering Committee (TBSC) and Budget Steering Committee SDBIPs (BSC). The plans received were assessed and revised to address the City's strategic direction. The BSC took place January to February to evaluate draft priority programmes in Page 3 of 286 COJ: COUNCIL 2016-03-18 COJ: MAYORAL COMMITTEE 2016-03-03 COJ: EMT (HOD) 2016-02-22 COJ: GROUP PERFORMANCE AUDITING COMMITTEE 2016-02-01 COJ: OFFICE OF THE EXECUTIVE MAYOR GROUP STRATEGY, POLICY COORDINATION AND RELATIONS Action Progress the short to medium term and outcomes thereof in relation to the strategic direction; to make considerations for mid-year budget and programme adjustments; to deliberate on performance targets and indicators; and to unpack draft capex and opex proposals. Mid-Year Review The mid-year review and SDBIP adjustments were tabled to Council in February 2016. This review provided an indication of the progress made in implementation of set targets, and assisted in establishing a baseline for the 2016/21 planning cycle. Budget Lekgotla The Budget Lekgotla took place on 13-15 February 2016 in order to align the City's strategic objectives to the budget. The table below outlines the summary of activities to be undertaken to ensure that the community of Johannesburg engages with the 2016/21 IDP processes. Tabling of the draft medium- The draft documents will be tabled at Council on 18 March 2016, term budget, IDP, proposed to allow for the commencement of the public commenting tariffs and institutional process. SDBIP for public comment IDP and Budget Outreach The City embarked on 24 Regional Ward Cluster Community Conversations to solicit inputs on the 2016/21 draft IDP and Budget which culminated into a broader Stakeholder Summit. Page 4 of 286 COJ: COUNCIL 2016-03-18 COJ: MAYORAL COMMITTEE 2016-03-03 COJ: EMT (HOD) 2016-02-22 COJ: GROUP PERFORMANCE AUDITING COMMITTEE 2016-02-01 COJ: OFFICE OF THE EXECUTIVE MAYOR GROUP STRATEGY, POLICY COORDINATION AND RELATIONS The 2016/21 is suggesting a refinement of the City’s strategic priorities to reflect the following: Priority 1: Employment creation, investment attraction and retention Priority 2: Informal Economy, SMME and Entrepreneurial support Priority 3: Green and Blue economy Priority 4: Transforming sustainable human settlements Priority 5: Smart City and Innovation Priority 6: Financial Sustainability Priority 7: Climate Change and resource resilience Priority 8: Building safer communities Priority 9: Active and engaged citizenry Priority 10: Agriculture and food security Priority 11:Repositioning Joburg in the global arena Priority 12: Good governance 5. PUBLIC COMMENTING PROCESS Chapter 4 of the MSA describes the process to be followed directly after tabling the IDP and supporting documents. It requires the City to publicise the documents and invite communities and other stakeholders to make inputs and representations into the IDP. Page 5 of 286 COJ: COUNCIL 2016-03-18 COJ: MAYORAL COMMITTEE 2016-03-03 COJ: EMT (HOD) 2016-02-22 COJ: GROUP PERFORMANCE AUDITING COMMITTEE 2016-02-01 COJ: OFFICE OF THE EXECUTIVE MAYOR GROUP STRATEGY, POLICY COORDINATION AND RELATIONS Upon the tabling and approval for publication by Council the 2016/21 draft IDP will be published for public comment on the City's website and in local newspapers.
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