Ditsobotla Local Municipality Revised Integrated

DITSOBOTLA LOCAL MUNICIPALITY

REVISED INTEGRATED DEVELOPMENT PLAN 2015/2016 – 2017/2018

DITSOBOTLA FINAL IDP 2015/16

TABLE OF CONTENTS 2.3.8. Finance and Business Sector ...... 8 2.3.9. Community, Social and Personal Services ...... 9 SECTION A: INTRODUCTION & OVERVIEW ...... 1 2.4. Access to Infrastructure Services ...... 9 2.4.1. Water Services ...... 9 1. Introduction ...... 1 2.4.2. Electricity ...... 10 1.1. Process Followed ...... 1 2.4.3. Sanitation ...... 10 1.2. Factors Influencing Current Review ...... 1 2.4.4. Roads and Stormwater ...... 11 1.3. Key Issues ...... 2 2.4.5. Refuse Removal ...... 11 1.4. The Ditsobotla IDP Review Outcomes ...... 2 2.4.6. Waste Disposal Facilities ...... 12 1.5. Contents of the Revised IDP 2015/2016 ...... 2 2.4.7. Housing Profile ...... 12 2.4.8. Land Ownership and Size ...... 13 SECTION B: SITUATIONAL ANALYSIS ...... 3 2.5. Availability of Educational, Health And Social Facilities ...... 14 2.5.1. Educational Facilities ...... 14 2. Overview ...... 3 2.5.2. Health Facilities ...... 14 2.1. Demographic Overview ...... 3 2.5.3. Community Halls ...... 15 2.1.1. Population Distribution ...... 3 2.5.4. Cemeteries ...... 16 2.1.2. Age Structure ...... 4 2.6. Demographics in Brief ...... 16 2.1.3. Education/Literacy Levels ...... 4 2.7. Public Needs ...... 16 2.1.4. Employment Rate ...... 5 2.8. Institutional Analysis ...... 17 2.1.5. Household Income ...... 5 2.8.1. KPA 1: Municipal Transformation and Development ...... 18 2.1.6. Occupation Profile ...... 5 2.8.1.1. Human Resource Management ...... 18 2.2. Economic Overview ...... 6 2.8.1.1.1. Employment Equity Plan ...... 18 2.2.1. Economic Contribution and Regional Growth Trends ...... 6 2.8.1.1.2. Employee Wellness Programme ...... 18 2.2.2. Economic Performance ...... 6 2.8.1.1.3. Overtime Expenditure ...... 18 2.2.3. Labour and Employment ...... 7 2.8.1.1.4. Skills Development ...... 18 2.2.4. Economic Sectors ...... 7 2.8.1.1.5. Information Technology ...... 19 2.3. Performance and Employment Profile per Sector ...... 8 2.8.1.1.6. Records and Archiving ...... 19 2.3.1. Agriculture, Forestry and Fishing ...... 8 2.8.2. KPA 2: Basic Services and Infrastructure ...... 19 2.3.2. Mining ...... 8 2.8.2.1. Roads and Stormwater ...... 19 2.3.3. Manufacturing and Industrial ...... 8 2.8.2.2. Water Infrastructure ...... 20 2.3.4. Construction ...... 8 2.8.2.3. Waste Water Treatment Management ...... 20 2.3.5. Electricity, Gas and Water (Utilities) ...... 8 2.8.2.4. Waste Management ...... 21 2.3.6. The Trade Sector ...... 8 2.8.3. KPA 3: Local Economic Development ...... 21 2.3.7. Transport, Storage and Communication ...... 8 2.8.4. KPA 4: Financial Viability and Management ...... 21

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2.8.5. KPA 5: Good Governance and Public Participation ...... 21 SECTION E: PROJECTS AND PROGRAMMES ...... 57 2.8.5.1. Corporate Governance ...... 21 2.8.5.2. Internal Audit and Risk Management ...... 21 SECTION F: FINANCIAL PLAN/BUDGET ...... 72 2.8.5.3. Legal Compliance ...... 22 2.8.5.4. Integrated Development Planning ...... 22 4. Executive Summary ...... 72 2.8.5.5. Performance Management ...... 22 4.1. Introduction ...... 72 2.8.5.6. Public Participation ...... 23 4.2. Consolidated Overview ...... 73 2.8.5.7. Customer Care ...... 23 4.3. Budget Summary and Analysis ...... 73 2.8.5.8. Intergovernmental Relations ...... 23 4.3.1. Medium Term Outlook 2015/2016 – 2017/2018 ...... 73 4.3.1.1. Capital Budget ...... 73 SECTION C: MUNICIPAL PRIORITIES ...... 24 4.3.1.2. Operating Budget ...... 74 4.3.2. Budget Analysis ...... 75 3. Introduction and Overview ...... 24 4.3.2.1. Operating Revenue per Source ...... 75 3.1. Vision Statement ...... 24 4.3.2.2. Property Rates ...... 79 3.2. Mission Statement ...... 24 4.3.2.3. Service Charges ...... 80 3.3. Municipal Priority Issues ...... 24 4.3.2.4. Interest on Debtors ...... 80 3.3.1. National Spatial Development Perspective ...... 24 4.3.2.5. Agency Fees ...... 80 3.3.2. National Key Performance Indicators ...... 25 4.3.2.6. Grants and Subsidies ...... 80 3.4. Key Informants ...... 25 4.3.2.7. Other Revenue ...... 80 3.4.1. Institutional Capacity ...... 25 4.4. Operating Expenditure ...... 81 3.4.2. Poverty and Unemployment ...... 25 4.4.1.1. Employee-related Costs ...... 81 3.4.3. Service Delivery Backlogs ...... 26 4.4.1.2. Remuneration of Councillors ...... 81 3.5. Key Municipal Issues ...... 26 4.4.1.3. General Expenditure ...... 81 4.4.1.4. Bulk Purchases ...... 81 SECTION D: STRATEGIC OBJECTIVES, TARGETS AND INDICATORS ...... 28 4.4.1.5. Repairs and Maintenance ...... 82 4.4.1.6. Contracted Services ...... 82 KPA 1: Municipal Transformation and Organisational Development ...... 28 4.4.1.7. Debt Impairment ...... 82 KPA 2: Basic Services and Infrastructure ...... 35 4.4.1.8. Depreciation and Asset Impairment ...... 82 KPA 3: Local Economic Development ...... 44 4.5. Project List Details ...... 82 KPA 4: Financial Management and Viability ...... 48 4.6. Budget Process ...... 84 KPA 5: Good Governance and Public Participation ...... 51 4.6.1. Overview ...... 84 4.6.2. Political Oversight ...... 84 4.6.3. Consultation Process ...... 84 4.6.4. Schedule of Key Deadlines ...... 84

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4.7. Budget Assumptions ...... 84 5.9.1. First Order SDC ...... 92 4.7.1. Key Financial Indicators ...... 84 5.9.2. Second Order SDC ...... 93 4.7.2. Credit Rating ...... 85 5.9.3. Third Order SDC ...... 93 4.7.3. Borrowing and Investments ...... 85 5.9.4. Rural Order SDC ...... 93 4.7.4. Rates, Tariffs, Charges and Timing of Revenue Collection ..85 5.9.5. Housing and Land Tenure ...... 94 4.7.5. Changing Demand Characteristics ...... 85 4.7.6. Overview of Budget Related Policies and Amendments ...... 85 SECTION H: OPERATIONAL PLAN ...... 95 4.7.6.1. Virement Policy ...... 85 4.7.6.2. Accounting Policy ...... 86 6. Overview ...... 95 4.7.6.3. Supply Chain Management Policy ...... 86 6.1. The Political Structure ...... 95 4.7.6.4. Credit Control and Debt Collection Policy ...... 86 6.2. Ward Committees ...... 95 4.7.6.5. Tariff Policy ...... 86 6.3. Municipal Portfolio Committees ...... 95 4.7.6.6. Fixed Asset Management Policy ...... 86 6.4. The Ditsobotla Municipal Administration ...... 96 4.8. Disclosure on Implementation of MFMA and Other Legislation ....86 6.5. Political and Administrative Inter-face ...... 96 4.8.1. Budget ...... 86 6.6. Technical Working Committee ...... 96 4.8.2. Budget and Treasury Office ...... 86 6.7. Senior Management Meeting ...... 97 4.8.3. Audit Committee ...... 86 6.8. Project Implementation Teams ...... 97 4.8.4. Municipal Public Accounts Committee ...... 86 SECTION I: MONITORING AND EVALUATION ...... 98 5. SECTION G: SPATIAL DEVELOPMENT FRAMEWORK ...... 87 7. Purpose of a Performance Management System ...... 98 5.1. Purpose and Structure of the SDF ...... 87 7.1. Legal Framework for Performance Management ...... 98 5.2. Development Concept ...... 87 7.1.1. The Local Government: Municipal Systems Act ...... 98 5.3. Settlement Patterns ...... 87 7.1.2. The Local Government: Municipal Planning and Performance 5.4. Road Network ...... 88 Management Regulations (2001) ...... 99 5.5. Open Space System ...... 88 7.1.3. The Local Government: Municipal Finance Management Act 5.6. Mining and Quarrying ...... 89 (Act No.56 of 2003) ...... 99 5.7. Agriculture ...... 89 7.2. The Municipal Performance Model ...... 100 5.8. Spatial Development Strategies ...... 90 7.3. Managing Organisational Performance ...... 100 5.8.1. Urban Integration ...... 90 7.4. The Organisational Scorecard ...... 101 5.8.2. Bulk Infrastructure Development ...... 90 7.5. The Service Delivery and Budget Implementation Plan ...... 101 5.8.3. Equitable Access to Services ...... 90 7.6. Performance Contracts ...... 101 5.8.4. Land Use and Transport Integration ...... 90 7.7. Auditing and Quality Control ...... 101 5.8.5. Greater Housing Typology Mix ...... 91 7.8. Schedule for Performance Reviews ...... 102 5.8.6. Protection of High Environmental Control Zone ...... 91 5.8.7. Land Use Budget ...... 91 5.8.8. Roads and Transport ...... 91 5.8.9. Social Amenities ...... 92 5.9. Proposed Service Delivery Centre Hierarchy ...... 92

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SECTION A: INTRODUCTION AND OVERVIEW • The Ditsobotla Local Municipality adopted the IDP Process Plan as a management tool that guided all the activities in the review 1. Introduction process during December 2014.

Section 35 of the Local Government: Municipal Systems Act (Act No.32 of • A broad ward-based planning meeting was held with all municipal 2000) defines the integrated development plan as the principal strategic ward committees and Councillors on the 11 February 2015, planning document that guides and informs all planning and development, Lichtenburg Town Hall, to provide performance feedback to as well as all decisions with regard to planning, management and communities and allow for their inputs as part of the needs development in the municipality. The IDP also binds the municipality in prioritization process. the exercise of its executive authority. • The draft integrated development plan was tabled before council The municipality is required in terms of section 34 of the Act to annually on the 31 March 2015 and publicised in local newspapers review its integrated development plan. This allows for refinement of plans “Noordwester” for comments for a period that ended 30 April 2015. based on changing environmental circumstances (both internal and external). The review and amendment of the IDP thus, further develops • Additional community consultation processes at ward level were the IDP and ensures that it remains the principal management tool and undertaken during the period 18 – 22 May 2015. strategic instrument for the Ditsobotla Local Municipality. • This final integrated development plan incorporating the views of This document sets out the results of the 2014/2015 review process which communities, which are available for inspection as a separate covered the following: document, was adopted by council on the 29 May 2015.

• Explanation of the process followed in the review; 1.2. Factors Influencing Current Review • Key issues that informed the review of some of the aspects of the IDP; and In this review the following key factors were considered: • The revised Strategic Objectives, Targets and Indicators as informed by municipal performance and changes in its operating • An assessment of the performance regarding implementation of environment. the integrated development plan; • Changes in the municipality’s internal and external environments; 1.1. Process Followed • The Status Quo Analysis Reports from various directorates and Units; The process that culminated in the development of this reviewed IDP • Community inputs received as part of the participation process; document can be summarised as consisting of the following activities: • Pertinent national and provincial plans; and

• Municipality’s Spatial Development Framework document.

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1.3. Key Issues • Unemployment.

Based on the assessment work done, largely through statistical analysis 1.5. Contents of the Revised IDP for 2015/2016 and reports received from various directorates as well as community inputs and other source documents it emerged that the Ditsobotla Local This Integrated Development Plan is structured as follows: Municipality still faces challenges of service delivery backlogs and organisational development which may be summarised as follows: • Section A: Introduction and Overview;

• Improving the municipality’s financial viability and management • Section B: Updated Situational Analysis providing a brief through the implementation of a deliberate revenue enhancement overview of the current situation of the Ditsobotla Local strategy and improvement of internal controls. Municipality; • The provision of sufficient, relevant human resource capacity responsive to the needs and aspirations of the communities. • Section C: Municipal Priority Issues outlining key issues and • The retention of scarce skills. strategic objectives for Ditsobotla Local Municipality; • The creation of an environment conducive for economic growth, sustainable employment opportunities and growth in personal • Section D: Strategic Objectives, Targets and Indicators; income levels of communities. • Addressing the service delivery backlogs through sustainable • Section E: Projects and Programmes; human settlement approaches enabling communities to meet their social and economic needs. • Section F: Financial Plan setting out strategic framework for financial management; 1.4. The Ditsobotla IDP Review Outcomes • Section G: Spatial Development Framework highlighting key Emanating from the review activities undertaken the community needs and elements of the municipality’s Spatial Development Framework; therefore municipal-wide priorities remained unchanged and include the following issues: • Section H: Operational Framework indicating how the municipality will implement the IDP; and • The provision of basic services such as water, sanitation, electricity, and refuse removal; • Section I: Framework for Performance Management. • Housing; • Roads and Stormwater; • Social facilities such as community halls, recreational facilities; and

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SECTION B: SITUATIONAL ANALYSIS Graphs: Population Growth & Distribution by Race

2. Overview 170000 The chapter provides a detailed situational analysis of the Ditsobotla Local 160000 168 902 Municipality. It reflects on the demographic, social and economic conditions of the municipal area. This is achieved by focusing on people’s 150000 147 599 perceptions of current state of service delivery and infrastructure, available 140000 statistics and figures from various sources. 130000

The intended outputs of the situational analysis are an assessment of the existing levels of development, priority issues on identified problems, root causes of existing development challenges, and information on available Population resources. 2001 147599 2011 168902 The primary outputs are derived from the community needs identified as part of the IDP outreach exercise undertaken to determine ward-based priorities which in turn were aggregated into municipal-wide focal areas. Population

2.1. DEMOGRAPHIC OVERVIEW 160000 2.1.1. Population Distribution 140000 120000 The recent Census 2011 reveals that the population of Ditsobotla Local 100000 Municipality has grown by an average of 1.35% from 147 599 in 2001 to 80000 168 902. The total households have also increased from 35 582 to 44 500 60000 with an average size of 3.8 persons. The population distribution figure 40000 20000 below also indicates a dominant presence of black Africans who 0 constitutes 10% of the population followed by whites. Black Coloured Indian/Asia White Other African n Population 150515 3236 935 13771 445

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2.1.2. Age Structure 85+ 0.4% 0.6% An understanding of the age structure and population of the municipality is 80-84 75-79 0.9% vital in planning for the anticipated demands for services and employment 70-74 1.6% opportunities. Specifically, it enables the municipality to: 65-69 2.1% 60-64 2.8% • Identify the potential need and location of facilities (e.g. education 55-59 3.9% and health); 50-54 4.6% 45-49 5.3% • Identify the expected growth in economically active population and 40-44 5.8% potential employment seekers; and 35-39 6.3% • Project and plan for facilities to cater for the older persons as well 30-34 6.8% as the future demands for cemeteries. 25-29 8.7% 20-24 9.0% The youthful nature of the Ditsobotla population is indicated in the 15-19 9.0% 10-14 10.0% attached age profile indicating that approximately 46% of the Ditsobotla 5-9 10.0% population are younger than 20 years of age. Additionally, the proportion 0-4 12.0% of people younger than 15 years accounts for 32.6% of the population. 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0%

In the majority of wards between 40% and 50% of the total population are Graph: Age Structure younger than 20 years of age. The highest concentration of people over 40 years of age is located in urban areas of Lichtenburg and Coligny 2.1.3. Education/Literacy Levels towns. The municipality has experienced growth in the levels of literacy as Applying the percentages figures provided by Statistics South Africa depicted on the graph below. The proportion of the population (based on (Census 2011) the age structure can be presented as follows: people of school-going age) without schooling has reduced by 9% from 24% to 15% between the period 2001 and 2011. Approximately 20% can be classified as having completed Grade 12 which represents a 4% growth, and 6.5% have higher education qualifications.

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Graph: Literacy Levels areas, as well as the majority of villages in the rural areas is less than R1 500 per household per month.

30% Graph: Annual Household Income

25% R 2 457 601 or more 81

20% R 1 228 801 - R 2 457 600 100 R 614 001 - R 1 228 800 315

15% R 307 601 - R 614 400 1094 R 153 801 - R 307 600 2278 10% R 76 401 - R 153 800 3207 R 38 201 - R 76 400 5387 5% R 19 601 - R 38 200 10875 R 9601 - R 19 600 9931 0% No Schooling Some Completed Some Grade 12 Higher R 4801 - R 9600 3762 Primary Primary Secondary Education R 1 - R 4800 2001 24% 24% 7% 25% 16% 5% 1886 2011 14.7% 22.6% 6.0% 29.9% 20.3% 6.5% No income 5584

0 2000 4000 6000 8000 10000 12000

2.1.4. Employment Rate 2.1.6. Occupation Profile The economically active population for Ditsobotla Local Municipality is 53.5% which represents a total population of 89 518. Approximately The overall occupation structure of the Ditsobotla Local Municipality is 42.2% is unemployed and 57.8% employed (Ditsobotla, SDF Review). depicted on the graph below. These figures indicate that 41% of the economically active population can be described as elementary 2.1.5. Household Income occupations. In addition, 9.9% of the work force is active in the craft and related occupations sector and 9.5% and in the plant machine operator The graph below indicates that the majority of households fall within the no and assembling sector. The proportion of the economically active income and R38 200 bracket. The highest average household income is population in the skills and technical sectors are very limited. Only 7.8% of concentrated in the Lichtenburg formal areas. The average household the economically active population can be described as technicians, income in these areas is generally in excess of R6 000 per household per approximately 8% as professionals, and roughly 3% as senior officials and month. The average household income in the vast majority of the rural managers.

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The concentration of elementary occupations as well as skilled agricultural 2.2.1. Economic Contribution and Regional Growth Trends workers within the rural areas, highlight the importance of the agricultural sector within these areas. The skilled and clerical workers are mainly The Ditsobotla Local Municipality contributes 22.7% to the district concentrated within the Lichtenburg town. economy. The finance and business services sector represent the largest contributing sector with a contribution of 24.7%. The trade sector Graph: Occupational Structure represents the largest contributing sector with a contribution of 19.1% followed by the manufacturing sector which contributes 11.8%. The general government service is the fourth largest contributor with 11.4% in Legislators, senior officials and managers 3.4% 2010.

Proffessionals 4.0% The table below provides statistical view of sectoral performance for the 7.8% Technicians and Associate Proffessionals period 2006 – 2010 based on Gross Value Adding (GVA) at basic prices. Clerks 8.3% Table: Sectoral Performance of the Municipal Economy 2006 – 2010 Services and Retail 7.3% 2006 2008 2010 Sector Agriculture and Fishery 8.4% % % % Crafts and related work 9.9% Agriculture 7.3 7.7 7.7 Mining 2.8 1.1 1.0 Plant and machine operators and… 9.5% Manufacturing 12.3 12.4 11.8 Elementary 41.4% Utilities 1.6 1.5 1.5 Construction 2.5 3.4 3.6

Trade 17.6 18.8 19.1

Transport and Communication 12.7 9.8 9.4 2.2. ECONOMIC OVERVIEW Finance and Business Services 18.9 24.6 24.7

Community, Social and Personal Services 10.9 9.8 9.9 Based on research done during the review of the Spatial Development General Government Services 13.5 10.9 11.4 Plan (2012) key economic indicators were identified to determine trends in Total 100 100 100 the municipal economy. This section provides a summary of the economic overview of the Ditsobotla Local Municipality based on selected time (Source: SDF, 2012) series economic and employment indicators. 2.2.2. Economic Performance

Based on historical data for the period 1995 – 2009 the local economy registered higher average annual growth rate than the district and

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province. The average annual growth for the municipality is 3.8% compared to the national annual average of 3.3% and the provincial 2.2.4. Economic Sectors average of 2.3%. The dominant economic sectors for Ditsobotla Local Municipality include 2.2.3. Labour and Employment finance and business services (25%); wholesale and retail trade, catering and accommodation (19%); manufacturing (12.2%); and general The employment profile for Ditsobotla Local Municipality indicates that the government services (11.5%). The graph below indicates the overall employment figures of the regional economy decreased between 1995 economic sector profile. and 2009, and picked again in 2010. In 2010 formal employment was estimated at 31 983 employees and informal employees were estimated at Graph: Economic Profile 7 781.

7.1% Agriculture, Forestry & Fishing 7.7% Graph: Employment Profile 1995 – 2010 7.7%

45 000 1.7% Mining 1.1% 1.0%

40 000 12.5% Manufucturing 12.4% 12.2%

35 000 1.7% Electricity & Water 1.5% 1.5%

30 000 2.9% Construction 3.4% 2006 3.6% 2008 25 000 19.2% Wholesale & Retail Trade; Catering and 18.8% Formal Accomodation 19.0% 2010 20 000 Informal 10.8% Transport and Communication 9.8% 9.4% 15 000 22.7% Finance and business services 24.6% 24.5% 10 000 10.1% Community, social and other 9.8% 9.7% 5 000 11.4% General Government Services 10.9% 11.5% - 0.0% 5.0% 10.0% 15.0% 20.0% 25.0%

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average GVA growth for the construction sector during the period 1995 – 2.3. PERFORMANCE AND EMPLOYMENT PROFILE PER 2010 is 5.6% with an employment contribution of -1.3%. SECTOR 2.3.5. Electricity, Gas and Water (Utilities) 2.3.1. Agriculture, Forestry and Fishing This sector contributes approximately 0.5% of the total economic The sector contributed 7.7% of the GVA of the local economy during 2010 production in the municipal area and less than 1% of total formal and 9.7% towards the local economy’s employment. The average annual employment. This sector’s role in the local economy is thus relatively GVA growth between 1995 and 2010 is 13.7% with an annual average limited. formal employment contribution of -5.7% during the same period. 2.3.6. The Trade Sector 2.3.2. Mining The wholesale and retail sector contributes approximately 19% of the GVA The mining sector contributed 10% of the GVA of the local economy in the local economy and 27.2% towards formal sector employment. The during 2010 and 1.2% towards the local economy’s employment. The annual average GVA growth for the trade sector has been 5.6% between average annual GVA growth between 1995 and 2010 is -8.5% with an 1995 and 2010 with an employment contribution average of 3.3%. annual average formal employment contribution of 1.1% during the same period. The trade sector is inclusive of both formal and informal retail facilities.

2.3.3. Manufacturing/Industrial 2.3.7. Transport, Storage and Communication

The manufacturing sector contributes approximately 12.2% of the total This sector contributed 9.4% towards the GVA of the local economy and output of the local economy. As far as employment is concerned the 1.7% towards formal employment during 2010. The average GVA growth manufacturing sector contributed approximately 10% of the total formal in this sector during the period 1995 – 2010 has been 1.9% with a decline employment opportunities in the local economy during 2010. in employment growth of -7.3%.

The annual average GVA growth for the manufacturing sector between 2.3.8. Finance and Business Sectors 1995 and 2010 is 3.9% with the annual average employment contribution of -2.1% during the same period. The sector contributed 24.5% outputs towards the local economy and contributed 11% of formal employment during 2010. The annual average 2.3.4. Construction GVA for the sector between 1995 and 2010 is 6% with an average employment growth of 5.4%. The construction sector contributes 3.6% towards the GVA of the local economy and 5.2% towards formal employment during 2010. The annual

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2.3.9. Community, Social and Personal Services 2.4. ACCESS TO INFRASTRUCTURE SERVICES

The sector contributed 9.7% towards the GVA of the local economy and 2.4.1. Water Services 26% towards formal employment during 2010. The annual average GVA growth for the period 1995 – 2010 is 3.1% and average employment In terms of the current powers and functions Ngaka Modiri Molema District growth is 0.7%. Municipality is a water services authority and the Ditsobotla Local Municipality is a water services provider. The economic and employment performances per sector are graphically presented in the revised Spatial Development Framework (2012) which is The total number of households with access to water is 39 662 which attached to this document. translate to 89% of which 29 353 (66%) has piped water inside dwelling and 10 309 (23%) has access to water outside the yard. The total backlog Graph: Employment Profile per Sector for households without access to water is 4 838 households.

A comparative analysis of households with access to water between the 17.0% Agriculture, Forestry & Fishing 9.7% period 2001 and 2011 indicates a steady growth of 7% having risen from

0.7% 82% to 89%. Whilst significant strides have been registered in ensuring Mining 1.2% access to basic services, the actual number of households without access 10.5% Manufucturing 10.0% to water has remained stable due to informal settlements.

0.3% Utilities 0.3% The significant reduction in the number of households without access to 5.5% water is attributable to the major bulk-water infrastructure programmes Construction 5.2% 2006 2010 undertaken by the district municipality over the past three years in areas 24.4% Trade 27.2% such as Tlhabologang and Itsoseng.

2.4% Transport & Communication 1.7% Table: Access to piped water 9.9% Finance & Business Services 11.0%

Community, Social & Personal 18.0% Piped (tap) water inside Piped (tap) water No access Services 20.6% yard/dwelling outside the yard 11.3% General Government Services 13.0% 29,353 (66%) 10,309 (23%) 4,838 (11%) 0.0% 10.0% 20.0% 30.0% (Source: Statistics SA, Census 2011)

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2.4.2. Electricity Graph: Access to Electricity

The municipality is licensed to provide electricity in the areas of Lichtenburg, Blydeville, and Coligny while the remainder is serviced by 29 895 Eskom. The Ditsobotla Local Municipality has approximately 32 933 23 420 households connected to the electricity grid which represents 74%. This 2011 figure is based on the statistics provided by Stats SA (2011) for 32 933 households using electricity for lighting. It therefore implies that the municipality has a total backlog of 11 567 households without access to 16 711 Cooking electricity which represents 26%. 15 868 Heating 2001 The municipality is experiencing pressures on the current network caused 23 854 Lighting by residential and commercial expansions in the Lichtenburg CBD. The required load (capacity) to meet future commercial and household demand 10 591 is 20MVA which is already approved by Eskom. The municipality is in the 9 935 process of sourcing funding for the project which is expected to commence 1996 during 2013/2014 MTREF period and is valued at approximately R29 14 631 million. - 5 000 10 000 15 000 20 000 25 000 30 000 35 000

The graph below represents the distribution of households with access to electricity within the municipality. The graph indicates that household access to electricity has almost

doubled between 2001 and 2011 from 14 631 to 29 895 which represents

49% increase.

2.4.3. Sanitation

The percentage of households with access to flush toilets connected to

sewerage remained constant for the period 2001 and 2011 at 42.7% and

43.9% respectively. The remaining part of the municipality is reliant on pit-

latrines with small parts of informal settlement using buckets. Reliance on

pit-latrines is mostly prevalent in rural areas and villages such as Ga-

Motlatla, Sheila, Matile, Meetmekaar, and Springbokpan.

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This figure is expected to reduce slightly with the completion of bulk-sewer • Provision of an intermodal facility at Bodibe to provide for at least project undertaken by the district municipality in Itekeng/Biesiesvlei. The 20 mini-bus taxis and one bus departures. figure below provides a summary of distribution of sanitation by type within • The provision of road signage and broadening of streets where the municipality. traffic congestions are experienced.

Table: Distribution of households by type of toilet (2001 & 2011) 2.4.5. Refuse Removal

TYPE 2001 2011 Recently released statistics (Census 2011) indicates that the number of households with access to refuse removal provided by the municipality is Flush/chemical 17 297 21 303 17 507 while those with access to communal or own dumping stands at Pit-latrine 12 101 15 807 23 329. A total of 2 949 households does not have any form of access to Bucket 2 887 2 197 refuse removal services. None 3 298 4 079 The spatial distribution of refuse removal clearly indicates that provision of The above figures also indicate that the number of households without any formal refuse removal services by the municipality occurs only in formal access to sanitation services represents 9.4%. However, the combined towns/residential areas of Lichtenburg, Blydeville, Boikhutso, Coligny, percentage of households with access beyond the required RDP Tlhabologang, Itsoseng and Itekeng. The challenge facing the standards is 16%. municipality is to extend the refuse removal service to the rural and village communities in the long-term and to initiate waste recycling projects. 2.4.4. Roads and Stormwater Graph: Access to Refuse Removal The greatest demand for internal roads and Stormwater is in the residential areas of Boikhutso, Itekeng, Itsoseng, Coligny and all rural 25 000 areas where there are no basic access and/or internal roads. The absence of a Roads Master Plan renders it difficult to quantify the exact 20 000 backlog in kilometres and the required levels of development. Removed by local 15 000 authority Own Refuse Removal In the short-term the Ditsobotla Local Municipality will institute the 10 000 following measures to address this challenge: No Rubbish Disposal

5 000 • Provide for side-walks/bicycle paths be provided in the

Lichtenburg CBD (along R52 on both sides of Lichtenburg); - 1996 2001 2011

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in respect of the water table. Another option is transporting the waste 2.4.6. Waste Disposal Facilities generated in this area to the Lichtenburg waste site. This option will however, result in the need to purchase two additional waste collection The Lichtenburg Waste Disposal Site is located 8km outside town on the vehicles. For this option to be viable, the Lichtenburg waste site needs to Deelpan road on the farm Elandsfontein 34IP. The Lichtenburg waste site be brought up to standard, including fencing of the area and entrance is registered but does not fully satisfy the required standards. The control at the site. available top soil to be used for the on-going rehabilitation of the site has been used to slope the quarry walls ensuring that it does not pose any 2.4.7. Housing Profile danger for people and animals. The site is underlain by dolomite. The landfill site is not fenced and has informal waste recyclers operating and The municipality’s Human Settlement Sector Plan (2012) projects the living at the site. municipal housing needs to be 16 514. The housing backlog is perpetuated by pressures such as migration of farm-workers into urban The frequency of waste removal in Lichtenburg, Boikhutso, Blydeville and areas in search for job opportunities and/or security of tenure. Shukran is once a week for residential areas and daily for all business areas. The Lichtenburg waste collection service is provided by two trucks The Human Settlement Implementation Plan based on the projected with capacities of 12m 2 and 10m 3 respectively. needs is reflected in the chapter dealing with ‘Strategies and Programmes’. The Plan clearly outlines an integrated programme Other communities within the municipality utilize informal communal approach to human settlement by outlining the required service delivery dumping sites and undertake their own waste disposal. In terms of the infrastructure to deliver the identified housing projects. latter this normally entails a pit being dug in the vicinity of the residence where the waste is discarded and burnt on a regular basis. In terms of the estimates provided the required land for new housing is 6 210 hectares. The service delivery infrastructure capital estimate is The cement industries within the municipal area manage their waste R141 million. The backlogs are broken down as follows (2012:76): independently of the municipality and have active recycling initiatives in order to contribute towards waste minimization.

The Biesiesvlei/Itekeng area does not have registered waste sites. Waste is currently collected twice a week and disposed at an unofficial site.

The Itsoseng, Verdwaal and Sheila area currently have a temporary site for which authorization have been obtained from DACET to dump the waste and burn it. Due to the high water table in this area it is hard to find a suitable alternative site. The dominant wind directions are from north- westerly direction which results in the exclusion of the most suitable areas

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Table: Housing Backlog (Human Settlement Sector Plan, 2012) Graph: Land Ownership

SETTLEMENT CLUSTERS HOUSING NEEDS TYPOLOGY

2.04% CPA

TOTAL HOUSING NEEDSHOUSING

Other Other 0.07%

Shacks Shacks Mining Groups Informal Housing Housing Backyard Rural Demand Rural Demand

Lichtenburg/Boikhutso/Blydeville 2 967 449 Unknown Unknown 3 939 Itsoseng/Sheila/Verdwaal 975 376 Unknown Unknown 3 922 Ditsobotla LM 2.1% Bodibe 283 106 Unknown Unknown 1 094 Coligny/Tlhabologang 2 498 245 Unknown Unknown 2 097 Itekeng/Biesiesvlei 728 148 Unknown Unknown 1 500 Ga-Motlatla 42 3 Unknown Unknown 210 Sate 4.2% Bakerville/Grasfontein/Welverdiend 1 060 0 Unknown Unknown 1 797 Rural 1 674 0 2 734 Unknown 1 955 Total 10 227 1 327 2 734 - 16 514 90.3% Private Ownership 2.4.8. Land Ownership and Size 0.0% 20.0% 40.0% 60.0% 80.0% 100.0%

The land ownership pattern is summarized in the figure below. This information indicates the vast majority of land within the Ditsobotla Local Municipality is privately owned (in excess of 90%). Approximately The existence of new settlement arising from restitution programmes also 27,120ha of land is state owned (representing 4.2% of the total land area) placed huge pressures on both the district and local municipality to plan and just over 2% is owned by the municipality. This implies that the and deliver on basic services including creating an environment conducive availability of public owned land strategically located for future for commercial farming. These areas are mostly located on the southern development in the municipal area is relatively limited. part of the municipality and include:

• The Putfontein area which consisted of farms of Putfontein 62 IP, Vogelstruis 479 IP, Sterkfontein 155 IP and Omega 478 IP. The total area of this restitution area was 7668 hectares; • The Bakolobeng claim, including the farms of Rooirantjiesfontein 98 IP, Koppiesfontein 87 IP and Rhenosterdoorns 88 IP covering a total area of 6173 hectares; • The Rietfontein claim area consisting of portions 3, and portion 12 of the farm Rietfontein 54 IP, totaling 422 hectares;

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• The Monamaladi land claim area located on the farm Holgat 63 IP Table: Number of Secondary Schools constituting a total land area of 3033 hectares; and Category Number • The Rietkuil land claim which at the time was at a pre-settlement Combined schools 2 phase located on portions 11, 12, 13, 36 and 37 of the farm Intermediate schools 6 Rietkuil 53 IP with a total area of 1100 hectares. Secondary schools 14 Senior secondary schools 1 2.5. AVAILABILITY OF EDUCATIONAL, HEALTH AND SOCIAL FACILITIES In addition to the facilities outlined above, there are two special schools located within the Ditsobotla area of jurisdiction. This part of the document explores the state of existing health and social facilities and identifies gaps that need to be addressed based on available The analysis of available information indicates that the municipality is information/statistics. theoretically sufficiently provided with primary and secondary school facilities based on the general planning norms and standards. The highest 2.5.1. Educational Facilities ratio between population and primary schools is prevalent in the Coligny/Tlhabologang area where the total population per primary school Available figures indicate a total of 107 primary schools across the is approximately 6 425. The average figure for the entire municipality is Ditsobotla Local Municipality (including junior primary, primary and senior one primary school for every 1 253 people. primary). These facilities are mainly concentrated in the central and southwestern parts of Ditsobotla where the highest population densities are The average ratio between secondary schools and population of the entire prevalent. The primary schools facilities are broken up according to the municipality is one secondary school for every 6 589 people. The highest following categories: ratio is prevalent in the Bodibe cluster with a figure of 1 secondary school for every 14 942 people. Table: Number of Primary Schools Category Number 2.5.2. Health Facilities Junior primary 30 Primary 74 The National Health Act, Act 61 of 2003 defines powers and functions Senior Primary 3 regarding the provision of health services. Municipal health services are a competency of category A (Metropolitan Municipalities) and category C The total number of secondary school education facilities is 26. These (district municipalities). Municipal health services include water quality facilities consist of the following components: monitoring, food control, waste management, health surveillance of premises, surveillance and prevention of communicable diseases (excluding immunization), vector control, environmental pollution control, disposal of the dead, as well as chemical safety.

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The Ditsobotla Local Municipality is therefore not expected to provide There are also nine clinics in the municipal area which includes the municipal health services except through an agreement with the district recently built state-of-the-art medical centre in Itsoseng aimed at municipality (Ngaka Modiri Molema District Municipality) and having the compensating for the already stressed Thusong Hospital. They are capacity to do so. The municipality has a Service Level Agreement with (excluding Itsoseng Medical Centre): the district municipality to provide the municipal health services on an agency basis. • Lichtenburg Municipal Clinic; • Boikhutso Clinic; All other functions not falling within the municipal health services definition • Blydeville Clinic; are performed by both the national and provincial governments. The • Coligny Clinic; provision of health services in the Ditsobotla municipal jurisdiction is the • Tlhabologang Clinic; responsibility of the provincial government. However, the municipality has • Itekeng Clinic; a responsibility to consider the health needs of communities through its • Bodibe Clinic; and planning processes. • Itsoseng Clinic.

There are currently two hospitals within the Ditsobotla jurisdiction. There is a total estimated backlog of 31 health facilities to cater for a

population estimated at 168 902 for all municipal areas. Based on the General de LaRey Hospital is located on the Thabo Mbeki Drive and planning standards or norms of one clinic per 5000 people it would appear provides services such as admitted patient care and maternity services. the Ditsobotla Local Municipality is underprovided with health clinics. The outpatient department provides emergency care for patients before the patient is referred to the Thusong Community Hospital. There is only one formal old age home facility in the Ditsobotla municipal

area, which is the Lichthuis Old Age Home situated in Lichtenburg. Thusong Hospital is located approximately 25km from Lichtenburg on the

Mafikeng road and at the turn off to Itsoseng. The hospital consists of the 2.5.3. Community Halls following facilities:

All municipal halls without exceptions need to be renovated to the • Theatres; standard that recognizes their social importance to communities. • Male and Female medical wards; Lichtenburg, Boikhutso, Itekeng, Itsoseng, Sonop, Tlhabologang hall • Gynaecology ward; facilities are identified as part of the social amenities improvement • Paediatric ward; programme to be funded through MIG initiatives. • Maternity ward; • Tuberculosis ward; Areas that require new facilities include Bakerville & Grasfontein, Bodibe, • Out patients; and and Verdwaal. • Casualty.

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2.5.4. Cemeteries 2.6. DEMOGRAPHICS IN BRIEF Recent investigations reveal a dire need for the provision of additional land for the communities of Itekeng, Coligny and Itsoseng for the development Table: Status Quo of Ditsobotla Local Municipality of cemetery yard. The maintenance of grave-yards in all municipal areas Demographics Year of residence remains a challenge due to cash-flow problems. There is a Total area 6 465km 2 need also to fence and construct ablution facilities in all the cemetery Population 168 902 2011 yards of the municipality. Number of households 44 500 2011 Economy In an effort of addressing the challenges facing the Ditsobotla Local Unemployment Rate 42.2% 2011 Municipality regarding the provision of new cemeteries a need arises for a Education proper alignment in design, planning and development focusing on the No schooling 14% 2011 following aspects: Some Primary 22.6% 2011 Completed Primary 6% 2011 • Providing cemeteries that meet sustainable, technical and Grade 12 20.3% 2011 environmental criteria; Higher Education 6.5% 2011 • Accommodating the diverse cultural requirements, their Living Conditions functioning as significant public spaces as well as places that Number of households living below poverty line needs are provided for all in order to reflect a dignified (below R1600 per month) municipality; and % households with access to water 89% 2011 • Building civil society and private sector partnerships in cemetery % households access to sanitation (flush toilets) 43.9% 2011 development and management; % households with access to electricity 74% 2011 • Giving special attention to indigents, respecting the need for Number of households with access to refuse bereavement at burial, protecting cemeteries as public property 17 507 2011 removal by municipality and ensuring safe working conditions for employees working in

cemeteries.

2.7. PUBLIC NEEDS The municipality has commenced a process of developing new cemetery yards for the communities of Boikhutso and Tlhabologang. At the time of Emanating from the community engagements during the current IDP review both the areas for Tlhabologang and Boikhutso cemetery review process the following inputs were recorded and may be considered development had passed the Environmental Impact Assessment. as aggregate public needs. The inputs are based on the number of wards

that raised a particular need. A detailed sheet indicating ward-specific

need is attached.

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Graph: Public Needs Graph: Aggregated Public Needs

EMS 1 Social Facilities 29% Public/Learner Transport 1 Educational Facilities Street lights 2 29% Parks 3 Public Safety 29% Electricity 5 Basic Services 29% Libraries 5 Sewer Network 5 Health & EMS 33% Community Halls 6 Land 33% Educational Facilities 6 Public Safety 6 Economic Development 38% Sanitation 6 Sports and Recreation 38% Water 6 Health Clinics 7 Housing 52% Land 7 Roads and Stormwater 76% Refuse Removal 7 Economic Development 8 0% 10% 20% 30% 40% 50% 60% 70% 80%

Sports Facilities 8 Housing 11 Roads & Stormwater 16 2.8. INSTITUTIONAL ANALYSIS 0 2 4 6 8 10 12 14 16 18

The institutional analysis of the Ditsobotla Local Municipality is carried out These needs can further be aggregated per function in terms of in terms of the five key performance areas for local government, namely: percentages as follows: • Municipal Transformation and Development; • Basic Service Delivery and Infrastructure Development;

• Local Economic Development;

• Financial Viability and Management; and

• Good Governance and Public Participation.

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2.8.1. KPA 1: MUNICIPAL TRANSFORMATION AND A copy of the Employment Equity Plan is attached as Annexure to this DEVELOPMENT document.

This key performance area deals with issues of human resources 2.8.1.2. Employee Wellness Programmes management; records management; information technology; and skills development. The municipality is in the process of developing a policy to address employee health and wellness. However, initiatives such as employee 2.8.1.1. HUMAN RESOURCES MANAGEMENT sports and recreation have been funded to ensure municipal employee participation in provincial and SADC sporting activities. 2.8.1.1.1. Employment Equity Plan 2.8.1.3. Overtime Expenditure The Employment Equity Act (Act No.55 of 1998) is aimed at addressing the past discrimination in relation to race, gender and The municipality is experiencing high levels of overtime expenditure due to disability. Chapter 3 of the Act requires employers to take affirmative a lack of controls – a matter that is raised by the Auditor General in several action measures to achieve employment equity. These should be reports. Management is planning to develop a policy on the regulation of indicated in the Employment Equity Plan. The Ditsobotla Local overtime work and to conduct workshops with all affected departments on Municipality has a five-year Equity Plan (2007 – 2012) which is aimed implementation. The departments that are mostly affected are those at achieving the following objectives: concerned with service delivery (i.e. Infrastructure).

• The removal of inequalities and discrimination in the workplace 2.8.1.4. Skills Development regarding conditions of employment, practices and procedures; • The establishment of processes leading to affirmative action and The Ditsobotla Local Municipality develops on an annual basis a employment equity; Workplace Skills Development Plan detailing the training and skills needs • The implementation of actions in order to provide sufficient skills in of both the councillors and staff. The municipality has over the past two various job categories; financial focused on critical skills such as financial management and • To ensure that the labour force is representative of skills of the engineering studies. broader community, taking into account the available skills and socio-economic situation of the community; In compliance with the requirement for minimum competencies at • The creation of an organization structure to support and managerial level all senior and middle managers including finance officers encourage employees to respect the diversity of Council’s have enrolled for a Certificate Programme in Management Development employees; and (CPMD). As part of responding to developing scarce engineering skills the • The prevention of reversed forms of discrimination. municipality in partnership with National Treasury incepted the Infrastructure Skills Development Programme which is aimed at assisting

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young graduates qualify as professional engineers while providing 2.8.1.6. Records and Archiving valuable service to communities. The municipality is currently using the manual system of for record- The challenge that remains is the fact that the WSP is often not aligned to keeping and archiving. Other challenges faced include under-utilisation of the strategic objectives of the municipality as contained in the integrated the function by departments (i.e. some of the documents are not submitted development plan. for filing and safe-keeping).

2.8.1.5. Information Technology The unit will seek to migrate to the electronic document management system over the next three years to ensure full compliance with existing The municipality has developed a draft IT Strategy which identified key laws and regulations such as the Promotion of Access to Information Act areas for implementation with a view to improving technological (PAIA). processes. The strategy provides a clear analysis of current the ICT infrastructure and key programmes that need to be undertaken to address 2.8.2. KPA 2: BASIC SERVICES AND INFRASTRUCTURE the identified challenges. DEVELOPMENT

The Strategy among others identifies the following key challenges: 2.8.2.1. Roads and Stormwater

• A need to provide the necessary expertise and capacity to the The Civil Engineering Services Unit is mainly responsible for the department through the appointment of the ICT Manager; construction and maintenance of municipal roads (internal and access), • Improve and/or overhaul the entire ICT infrastructure (servers) to and storm-water systems within the area of jurisdiction of the Ditsobotla respond to the business environment of the municipality, Local Municipality. Various functions within the unit includes the following: enhancing compliance and information management security; and repairing of potholes, maintenance of storm water systems, grading of • Improve internet access/speed for improved business efficiency. gravel roads, re-gravelling of roads, monitoring of roads & storm water projects. The ICT function intends implementing the following planning processes during the 2013/2014 financial year: Most of the municipal roads within the following areas: Lichtenburg, Burgersdorp, Coligny, are paved. By contrast roads in the townships of • The Master Systems Plan; Tlhabologang, Itsoseng, Blydeville Extensions, Boikhutso, and Itekeng are • The Business Continuity Plan; still unpaved (gravel) but with the number of newly established and • The Disaster Recovery Plan; and developed settlements, the number has increased considerably. • ICT Policy. Roads and storm-water infrastructure especially in Lichtenburg CBD were originally designed and constructed for low traffic volume and low rainfall density respectively, hence the problems of structural deflection

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experienced currently. The problem, the municipality is faced with is the • The roads around Lichtenburg and Burgersdorp were designed increased traffic volume over the years that has resulted in the dilapidation and constructed too wide which now makes it most expensive to of the road structures, i.e. the road structure cannot handle the current maintain and rehabilitate with the current material prices. traffic volumes. The other visual observation is the ‘crocodile cracks’ and • Aged and fatigued road surface. deflection of the road surface as the result of the ageing and fatigue of the • Insufficient funding to address the backlog. road surface. 2.8.2.2. Water Infrastructure The deterioration of municipal roads is also as a result of more industries (economic development) coming to Lichtenburg over the past years i.e. The service delivery backlogs for water services are addressed in the more heavy vehicles driving on our roads. previous sections of this document. The water supply systems within Ditsobotla Local Municipality are found in: Apart from municipal roads, there is a national road (N14) connecting Ditsobotla with Gauteng Province and provincial roads (R503, R508, R52) • Klipveld ; intersecting with municipal roads and these are commonly known as • Coligny; “subsidy roads”. The maintenance and/or rehabilitation of these roads • Itsoseng; and remain the responsibility of the National and Provincial Departments of • Burgersdorp. Roads and Transport respectively. The state of N14 is good, as it was recently rehabilitated and provincial roads are not in such a bad state, they The municipal infrastructure audit indicates a total sixteen (16) reservoirs however, need regular maintenance. within the municipal area. Nine of these reservoirs are classified as being in good conditions, one in average condition and three in a poor condition. The municipality had undertaken projects of paving/tarring main access The district municipality has recently constructed a reservoir in Itsoseng to roads into rural areas (Sheila, Verdwaal, Bodibe, etc.) with access roads in address water shortages experienced in the past. other rural areas (Bakerville, Welverdiend, Meetmekaar, Springbokpan) only been re-gravelled due to a lesser number of vehicles in those areas. 2.8.2.3. Wastewater Treatment Management

Generally, the challenges can be summarised as follows: There are four Wastewater Treatment Works within the municipal area, namely: • No storm-water management system- indicating which pipe sizes to use, catchment areas, and design criteria. • Itsoseng WWTW; • Lack of human resource to deal with the maintenance of roads • Lichtenburg WWTW; and storm-water. • Bodibe pond system; and • Lack of resources in the form of machinery (yellow fleet) for • Coligny WWTW. maintenance and rehabilitation of existing roads (gravels and

paved).

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The Lichtenburg waste water treatment plant is more than fifty years old. 2.8.5. KPA 5: GOOD GOVERNANCE AND PUBLIC The overall physical condition of this plant is good and the infrastructure is PARTICIPATION well maintained. The annual maintenance cost of this plant is estimated to be R1million. The pump station in Itsoseng is in an average condition and Good governance deals with issues of public participation and governance requires overhaul maintenance. and covers areas such as corporate governance; Integrated Development Planning; Organisational Performance; and Special Programmes. 2.8.2.4. Waste Management 2.8.5.1. Corporate Governance The Environmental Health Services is responsible for the provision of waste management functions which covers refuse removal, transportation Corporate governance covers aspects such as risk and fraud and disposal; cleansing services; garden and bulk refuse removal management, internal audit, legal and compliance, and public services; and environmental awareness. participation.

The unit experiences various challenges including: 2.8.5.2. Internal Audit and Risk Management

• Obsolete and unreliable fleet and equipment; The internal audit function is a shared service residing within the Ngaka • Shortage of skilled staff, especially at supervisory levels; Modiri Molema District Municipality in terms of a Service Level Agreement • Designation of waste management officers; and which will be operational for a period of three years ending June 2016. • Lack of waste management by-laws. The intention of the current arrangement is to build the necessary capacity over time and transfer the function to the municipality with the necessary 2.8.3. KPA 3: LOCAL ECONOMIC DEVELOPMENT human resources.

The municipality is in the process of developing the Local Economic In terms of the provisions of section 165(2) of the Local Government: Development Strategy that will guide and inform all activities to be Municipal Finance Management Act (Act No.56 of 2003) the internal audit undertaken in terms of growing the local economy and contribute to job function is responsible for: creation. • The preparation of a risk-based audit plan and an internal audit 2.8.4. KPA 4: FINANCIAL VIABILITY AND MANAGEMENT program for each financial year;

See Section H on MTREF Budget 2015/2016. • advice the accounting officer and report to the audit committee on the implementation of the internal audit plan and matters relating to – (i) internal audit; (ii) internal controls;

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(iii) accounting procedures and practices; geared towards linking, integrating, and coordinating plans between and (iv) risk and risk management; among spheres of government taking into account proposals for (v) performance management; municipality’s development; align resources for implementation of (vi) loss control; and municipal plans; and forms the basis on which the annual budget must be (vii) compliance with the MFMA, the annual based. Division of Revenue Act and any other applicable legislation. The following key challenges have been identified regarding the integrated development planning process and will receive attention through this • perform such other duties as may be assigned to it by the revised plan: accounting officer. • The alignment of the budget to the IDP is yet to be fully achieved The Internal Audit undertook a business risk assessment has been in some programme areas; completed and the municipality is in the process of developing the • There is a need to strengthen platforms for structured participation mitigating strategies to address them. (i.e. IDP Forum); • Better coordination in the implementation of the process plan to 2.8.5.3. Legal Compliance meet key deadlines; • There is also little alignment between the IDP and the Service The Legal Services Unit is located within the Office of the Municipal Delivery and Budget Implementation Plan (and therefore PMS); Manager and is tasked with the overall responsibility of advising the entire • There is a need to develop a continuous capacity programme for municipal departments on legal issues including compliance. However, all stakeholders on the concept of integrated development staff shortages as well as lack of optimum use of the function limits the planning; and achievement of improved corporate governance. • Establish a fully capacitated IDP & PMS Unit by appointing additional staff. It has therefore become necessary to realign the scope of the Legal Services Unit to extend beyond advisory to also include ensuring 2.8.5.5. Performance Management compliance across all directorates. The municipality also understands that the Internal Audit Service will have a cross-cutting responsibility on Chapters 6 of the Local Government: Municipal Systems Act (Act No.32 of matters of compliance which are shared with the Legal Services 2000), requires local government to: responsibility. • Develop a performance management system; 2.8.5.4. Integrated Development Planning • Set targets, monitor and review performance based on indicators linked to the Integrated Development Plan (IDP); The integrated development plan is required in terms of the Local Government: Municipal Systems Act (Act No.32 of 2000) and it is primarily

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• Publish an annual report on performance management for the • Ward committees: provide an important link or interface between councillors, staff, the public and other spheres of government; council and the community. The dissemination of information • Incorporate and report on a set of general key performance between council and communities is achieved through these indicators prescribed nationally by the Minister responsible for structures. local government; • Ward-based community meetings: Councillors periodically hold • Conduct an internal audit on performance before tabling the general public meetings to inform communities of municipal report; and programmes and receive inputs on various planning processes • Have the annual performance report audited by the Auditor- (including IDP and Budget) from them. General; and • Council meetings: Since council meetings are open to the public it • Involve the community in setting indicators and targets and provides a platform for bolstering accountability and transparency reviewing municipal performance. regarding decisions taken by council. • Quarterly and Annual Reporting: Communities are kept abreast of Despite having adopted a Performance Management Framework Policy in developments through periodic reports as required by legislation the previous years the Ditsobotla Local Municipality faces various for inputs on how to further improve municipal performance challenges with regard to the implementation of its performance (review of targets, key performance indicators). management processes which includes among others: • Community Development Workers: They serve as a vital link in disseminating key information on municipal programmes to • The need to appoint a person responsible for performance communities and complement the work of ward committees. management and to build internal capacity among employees to understand the concept and application of performance 2.8.5.7. Customer Care management; • Overall performance planning need urgent attention; and The municipality is faced with a challenge of establishing a one-stop • Performance reporting, both quarterly and annually, requires customer service to deal with client and public queries regarding service attention (quality). delivery. Currently each directorate handles its own ‘function-specific’ client queries and the turnaround time for attending such queries as well 2.8.5.6. Public Participation as systems efficiencies are not recorded for review and/or improvements.

The Ditsobotla Local Municipality realises the central role played by the 2.8.5.8. Intergovernmental Relations community and general public in municipal planning and development processes. Community involvement in local governance is vital to promote There is a need to provide the necessary capacity in the Office of the accountability, transparency and participatory democracy. In order to Mayor to adequately address issues relating to intergovernmental advance this focal area, the municipality involves the community and pubic relations. This includes providing the necessary skills and knowledge to in its affairs through the following mechanisms/tools: give effect to implementation of the Intergovernmental Relations Framework Act (Act No.13 of 2005).

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SECTION C: MUNICIPAL PRIORITIES National Key Performance Indicators (Local Government: Municipal Planning and Performance Management Regulations, 2001) and the 3. Introduction and Overview National Spatial Development Perspective (2006) as well as other national and provincial plans. This section of the document provides a summary of municipal-wide priorities that need to be focused on. It is a culmination of a holistic 3.3.1. National Spatial Development Perspective assessment of the performance of the municipality during the financial year under review and proposes key strategic issues which must inform all A comparative analysis on the performance of the municipality against the interventions in the short and long-term period. normative principles of the NSP provides a fair indication of whether the Ditsobotla Local Municipality has been able to create jobs and contribute Municipalities operate within the policy and legal framework created by a to the growth of the regional economy through implementation of its myriad of Acts, Bills, White Papers, Green Papers and other policy related Spatial Development Framework as well as its Local Economic information forthcoming from both national and provincial level. The Development Strategy. Below are the key normative principles of the applicable legislation guidelines for each priority is summarized as an NSDP. overview of the key legal and policy aspects, which need to be considered in the development of appropriate strategies. Table: NSDP Principles € Economic growth is a prerequisite for the achievement of other 3.1. Vision Statement policy objectives, key among would be poverty alleviation.

“A developmental municipality dedicated to the social and economic € Government spending on fixed investment, beyond constitutional upliftment of its communities.” obligation to provide basic services to all citizens, should therefore be focused on localities of economic growth and/or 3.2. Mission Statement potential in order to attract private-sector investment, stimulate sustainable economic activities and/or create long-term “Sustainable service delivery through: transparent administration; employment opportunities. dedicated staff; implementation of municipal programmes; and consultation with communities.” € Efforts to address past and current social inequalities should focus on people not places. In localities where there are both 3.3. Municipal Priority Issues high levels of poverty and development potential, this could include fixed capital investment beyond basic services to exploit An analysis of issues raised through community meetings as well as the the potential of those localities. In localities with low external and internal environmental scan (status quo analysis) provides for development potential, government spending beyond basic the aggregation of issues underpinning municipal strategic visioning. The services should focus on providing social transfers, human major informants considered in aggregating key municipal issues are the

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resource development and labour market intelligence. This will • Number of people from the employment equity target groups enable people to be more mobile and migrate, if they choose, to employed in the three highest levels of management in localities that are more likely to provide sustainable employment compliance with the municipality’s approved employment equity or other economic opportunities. plan, short and long-term employment. • % of the municipality’s budget actually spent on implementing € In order to overcome spatial distortions of apartheid, future workplace skills plan. settlement and economic development opportunities should be • Financial viability, bank balances, investments, outstanding channeled into activity corridors and nodes that are adjacent to or debtors to revenue, creditor payments, credit rating, external link the main growth centres. Infrastructure investment and loans, aggregate for bad debts. spending should primarily support localities that will become major growth nodes in South Africa and Southern African 3.4. Key Informants Development Community region to create regional gateways to the global economy. The determination of key issues is mainly centred on municipal financial viability, institutional development, poverty levels and service delivery Economic development remains part of the municipal priorities due to high backlogs. An understanding of the above is crucial in mapping the poverty and unemployment levels. development approach for the MTREF period.

3.3.2. National Key Performance Indicators 3.4.1. Institutional Capacity

The following national key performance indicators are crucial in any The current municipal challenge is to ensure that the current structure is municipal planning processes: re-oriented towards effectively and efficiently addressing the current internal (institutional service delivery and infrastructure development • % households with access to basic levels of water, sanitation, planning) and challenges faced by the external stakeholders electricity and solid waste removal. (communities). This should be done in an integrated approach rather • Households earning less than R1 100 per months with access to than focusing on ad hoc amendments as may be dictated by free basic services of water, sanitation, electricity and solid waste circumstances at a particular given time. removal. • % of a municipality’s budget actually spent on capital projects 3.4.2. Poverty and Unemployment identified for a particular financial year in terms of the municipality’s integrated development plan. Part of the challenges for consideration in crafting municipal vision and • Number of jobs created through the municipality’s local strategic objectives is the extent to which the Ditsobotla Local Municipality development initiatives including capital projects; is able within available resources to reduce the unemployment rate within the regional economy. In an economy where 42% of the economically active are unemployed the effect is that this places serious stains on the

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municipal financial resources as it means an increase in the budget for Table: Municipal Key Issues social packages such as free basic services. KEY ISSUE KEY OBJECTIVE Addressing poverty and unemployment within the goals of the Provincial Growth and Development Strategy remains a key The municipality’s financial position A fully capacitated municipal informant of strategic planning. is poor due to inadequate capacity administration capable of as well as poor finance developing and implementing 3.4.3. Service Delivery Backlogs management controls/systems. effective financial controls. The organizational design does not Capacitated institution structured in The Situational Analysis provides a reason for a concerted effort towards respond to service delivery a way that enables efficient and addressing existing backlogs by allowing for medium term thinking and challenges. There is no adequate effective service delivery. budgeting to achieve MDG goals. Providing basic services such as water, capacity in technical functions of the sanitation and electricity remains an important aspect for consideration in municipality. determining municipal-wide priority issues. High levels of poverty and Create an environment conducive unemployment, skills shortage, and for economic growth, sustainable 3.5. Key Municipal Issues inequalities within the Ditsobotla employment opportunities and Local Municipality. growth in personal income levels of Based on an assessment of the baseline information revealed during the communities. analysis phase, the Ditsobotla Local Municipality faces a challenge of Backlogs in the provision of social A well-structured Ditsobotla Local addressing the following priority issues: services, infrastructure, service Municipality able to support delivery and economic sustainable human settlement and opportunities. enable residents meets their social and economic needs.

The above municipal-wide priorities may further be refined into Service Delivery and Institutional Priorities.

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Table: Service Delivery and Institutional Priorities

SERVICE DELIVERY PRIORITIES INSTITUTIONAL PRIORITIES

€ Water and Sanitation; € Strengthening the municipal € Electricity; administration, particularly € Roads and Stormwater; the BTO; € Housing; € Development and € Refuse Removal; implementation of € Local Economic management control Development; measures (policies);

€ Health Care; € Revenue Management and

€ Disaster and Emergency enhancement;

Responses; and € Implementation of

€ Sports and Recreation Performance Management

Facilities. System; € Effective, efficient and reliable Information Technology systems; € Strengthening public participation processes; and

€ Skills development.

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DITSOBOTLA FINAL IDP 2015/16

SECTION D: STRATEGIC OBJECTIVES, TARGETS AND INDICATORS

KPA 1: MUNICIPAL TRANSFORMATION AND ORGANISATIONAL DEVELOPMENT

THEMATIC AREAS Labour Matters, Financial, and Administrative Capacity STRATEGIC OBJECTIVES Improve organisational cohesion and effectiveness INTENDED OUTCOME Improve organisational stability and sustainability OUTCOME 9 Output 1 Implement a differentiated approach to municipal financing, planning and support Output 6 Administrative and financial capability

DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

To create a healthy working Implementation of the Percentage annual Annual Report Employment Equity 90% 95% Director: Corporate environment reviewed Employment targets met in place Services Equity Plan

To provide skilled and Develop a municipal Council-approved Monthly Reports There is no Human HR Strategy Review Director: Corporate competent municipal staff or Human Resource Human Resource Resource Strategy approved Services employees for Ditsobotla Local Strategy by 30 October Strategy Municipality 2015

Develop 9 human Number of human Quarterly Reports There are no 9 policies Review Director: Corporate resource management resources policies Remuneration, approved by Services and labour related approved by council PMS Framework, council policies for approval by Job Evaluation, council by 30 December Retirement, 2015 Bursary, Employee- wellness, and Incapacity and Ill- health Policies

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DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

To provide skilled and Review of all human Number of human Quarterly Reports Recruitment and Council- Director: Corporate competent municipal staff or resource management resource management Selection; Acting; reviewed Services employees for Ditsobotla Local policies policies reviewed by Training and Recruitment and Municipality council by 30 October Development; and Selection; 2015 Occupational Acting; Training Health and Safety and Policies in place Development; and need to be and reviewed Occupational Health and Safety Policies

Appointment of senior Number of director managers (directors) in positions filled by 30 vacant positions by December 2015

Review of the Adopted Quarterly Reports Draft Structure Approved Director: Corporate organisational structure Organisational exists organisational Services in line with municipal Structure by 30 structure powers and functions December 2015 and applicable legislation

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DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

To promote positive employee Ensure the optimum Number of Local Monthly The Local Labour 12 meetings 12 meetings Director: Corporate climate and sound labour functionality of the Local Labour Forum Reports/Agenda & Forum is Services relations Labour Forum Meetings held per Minutes dysfunctional annum

Develop and implement Number of employee Monthly Reports 2 held annually 4 4 Director: Corporate an Employee Wellness wellness programmes Services Programme by 30 June implemented annually of each year

To enhance organizational Development of a Council-approved Monthly Reporting The municipality Approved Review Director: Corporate culture to be performance- credible Performance PMS Framework does not have a Performance Services oriented to realize municipal Management System by PMS Management vision 30 September 2015 System

Approval of the Annual Annual Report tabled Annual Reports The annual report Table annual Table annual Municipal Manager Reports by 25 January before council by 25 was tabled late report by 25 report by 25 annually January annually January 2016 January 2017

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DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

To provide administrative and Development and Council-adopted Monthly Reporting The municipality Council Review Director: Corporate legal support services in a approval of Delegations Delegations has an old approved services manner that enables council to Framework Policy by Framework Policy delegations policy Delegations effectively render services council by 30 December Framework within its powers and functions 2015 Policy

To provide administrative and Development and Council-approved Monthly Reporting Council committees Council- Review Director: Corporate legal support services in a approval of Terms of Terms of References do not have the approved Terms Services manner that enables council to References for Council for Council Terms of of References effectively render services Committees by 30 Committees References within its powers and functions September 2015

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DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

To ensure that the Ditsobotla To develop or Review Council-approved Quarterly Reports There is no ICT ICT Strategy - Director: Corporate Local Municipality has an an ICT Strategy by 30 Information and Strategy Reviewed/approved Services efficient communication and January 2016 Communications information management Technology Strategy system Develop and implement Council-approved IT Quarterly Reports There are no IT Approved IT - Director: Corporate IT policies by 30 policies policies in place policies in place Services December 2015

Develop and adopt a Council-approved Monthly Reports There are no Approved Master Director: Corporate Masters Systems Plan Master Plan Master Plans Plan Services by 30 March 2016

Develop a municipal Percentage Monthly Reporting The municipal Live and updated - Director: Corporate website by 30 implementation of live website is outdated municipal website Services December 2015 and updated in place municipal website

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DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

To provide municipal strategic Ensure compliance with Process Plan for Annual Report The 2014/15 Process Plan Process Plan Municipal Manager planning support legal requirements for 2015/2016 – 2017 IDP Process Plan was adopted by 30 adopted by 30 the development and and Budget Review adopted later than August 2015 August 2016 implementation of a adopted by council by the legislated credible IDP and 30 August annually timeframe Budget Draft Reviewed IDP Annual Report The current IDP IDP and Budget IDP and Municipal Manager and Budget adopted was adopted in line adopted by council Budget by council by 30 with legal by 30 March 2016 adopted by March annually timeframes council by 30 March 2017

Final reviewed IDP Annual Report The final budget Final reviewed IDP Final reviewed Municipal Manager and Budget adopted approved on time & Budget approved IDP & Budget by council by 30 May by 30 May 2015 approved by 30 annually May 2016

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DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

To provide municipal strategic Ensure compliance with Service Delivery and Annual Report The Service SDBIP approved by SDBIP Municipal Manager planning support legal requirements for Budget Delivery and 28 June 2016 approved by 28 the development and Implementation Plan Budget June 2017 implementation of a approved by the Implementation credible IDP and mayor by 28 June Plan approved late Budget annually

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KPA 2: BASIC SERVICE DELIVERY & INFRASTRUCTURE

THEMATIC AREAS Basic Services OUTCOME 9 Output 2 Improve access to basic services Output 4 Actions supportive of human settlement outcomes Ten Point Plan No.1 Improve the quantity and quality of municipal basic services to the people in the area of access to water, sanitation, electricity, waste management, roads and disaster management

DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

Improve the quality and Develop the necessary Number of Quarterly Reports 4 838 (89%) of 1 000 1 000 Director: quantity of municipal basic water infrastructure for households with households have Infrastructure services to communities on water provision access to portable no access to Services access to water services water portable water

Monitoring and Adopted Water Annual Report There is no Water Council adopted Review Director: reporting on Services Operations Services Water Services Infrastructure maintenance of water and Maintenance Plan Operations and Operations and Services services by 30 December 2015 Maintenance Plan Maintenance Plan

Improve the quality and Develop the necessary Number of Annual Report 38 270 (86%) of 2 000 2 000 Director: quantity of municipal basic water infrastructure for households with households have Infrastructure services to communities on the provision of access to sanitation access to basic Services access to sanitation services sanitation services levels of sanitation

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DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

To ensure sufficient supply of Engage Eskom in Stable electricity Quarterly Reports Current electricity Planning Finalisation Director: electricity to match consumer increasing the capacity supply to residents by supply does not and Infrastructure demand in the municipal of the current supply to 30 June 2017 match demand. Implementation Services license areas of Lichtenburg, meet the current and Quotation already Blydeville and Coligny projected future received from demands in the Eskom municipal service area

Develop the Electricity Adopted Electricity Quarterly Reports There is no Secure external Development Director: Master Plan Master Plan by 2017 Electricity Master funding for the and approval of Infrastructure Plan development of the the Electricity Services Master Plan Master Plan

Develop the Electricity Adopted Electricity Monthly Report There is no Council-adopted Review Director: Operations and Operations and Operations and Electricity Infrastructure Maintenance Plan Maintenance Plan by Maintenance Plan Operations and Services 30 December 2015 in place Maintenance Plan

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DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

To ensure universal access to Increase the number of Number of new Quarterly 1 808 of 2 441 600 1 000 Director: electricity services households connected households connected electrified as at Infrastructure to the electricity grid to national grid March 2014 Services (new connections) through the Integrated National Electrification Programme 1

Finalise the signing of a Council-approved Quarterly Reports There is no MoU in Council approve Implementation Director: Memorandum of MoU signed between place and sign and Review Infrastructure Understanding with Eskom and Ditsobotla Memorandum of Services Eskom for the Local Municipality by Understanding maintenance of public 30 December 2015 lights in its (Eskom) license area

1 Eskom normally confirms projects for ensuing year around April each year (i.e. the 2014/15 projects were confirmed on the 22 April 2014). The target are merely indicative subject to final project list from the utility.

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DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

To upgrade and maintain roads Develop key internal Kilometres of roads Quarterly Reports New 20.95km 18km Director: and storm water services within and access roads that paved Infrastructure the municipal area enable development Services and economic growth

Develop and approval Council-adopted Quarterly Reports There is no Roads Council approved Review Director: by council of the Roads Roads and and Stormwater Roads and Infrastructure and Stormwater Master Stormwater Master Master Plan Stormwater Master Services Plan Plan by 30 December Plan 2015

Develop and approval Council-adopted Quarterly Reports There is no Roads Council approved Review Director: by council of the Roads Roads and and Stormwater Roads and Infrastructure and Stormwater Stormwater Master Plan Stormwater Master Services Operations and Operations and Plan Maintenance Plan Maintenance Plan by 30 December 2015

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DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

To ensure that all residents Ensure provision of Number of Quarterly Report 26 278 households 1 000 1 000 Director: Community have access to refuse removal refuse bins to all eligible households with have no access to (new provision) (new provision) Services and waste services households by 2017 access to refuse refuse removal removal services services

Development of an Council-adopted Quarterly Report There is no Integrated Director: Community Integrated Waste Integrated Waste Integrated Waste Waste Services Management Plan Management Plan by Management Plan Management 2017 Plan adopted by Council

Development and Council-adopted By- Quarterly Report There is no By-law By-law on Implementation Director: Community adoption of a By-law law on the prohibition on the Prohibition Prohibition of Illegal and Review Services prohibiting illegal of illegal dumping by of Illegal Dumping Dumping in place dumping 30 June 2016 in place

To increase the levels of traffic Erect traffic signs in all Percentage of Quarterly Report New 5% 5% Director: Community safety in Ditsobotla Local municipal residential departmental budget Services Municipality for pedestrians areas with reasonable spent on traffic signs and road users vehicle/traffic volumes in areas with reasonable vehicles or traffic volumes

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DITSOBOTLA FINAL IDP 2015/16

DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

To improve customer or client Increase the number of Number of learners Quarterly 1 872 2 000 2 000 Director: Community services on traffic and licensing customers receiving license issued Services issues licensing and traffic services from the Number of driver’s Quarterly 2 434 2 500 2 500 Director: Community municipality license issued Services

Number of motor Quarterly 10 807 10 900 10 900 Director: Community vehicles tested Services

Number of vehicle 11 877 11 900 11 900 Director: Community roadworthy tests Services

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DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

Provision and maintenance of Improve the Number of community Quarterly 0 1 1 Director: Community community facilities infrastructure of the halls upgraded by Services community facilities 2017

Introduction of greening Number of greening Quarterly 0 1 1 Director: Community activities initiatives Services implemented

Maintenance of all Number of parks Quarterly 1 8 8 Director: Community existing social maintained annually Services amenities

Number of cemeteries Quarterly 0 5 5 Director: Community maintained annually Services

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DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

To facilitate the development of Approval of the Council-adopted Annual Report Draft Housing Approved Housing Review Director: LED sustainable human settlement Reviewed Housing Reviewed Housing Sector Plan in Sector Plan within the municipal area Sector Plan by council Sector Plan place by 30 December 2015 Number of low cost Quarterly Report 1 232 units 5 200 units 6 000 units Director: LED housing units completed facilitated annually

To promote spatial planning Approval of reviewed Adopted Spatial Quarterly Report Draft in place Adopted Spatial Review Director: LED and proper land use within Spatial Development Development Development Ditsobotla Local Municipality Framework by 30 Framework Framework December 2015

Development and Approved Land Quarterly Report There is no Land Adopted Land Review Director: LED approval of the Land Alienation Policy Alienation Policy Alienation Policy Alienation Policy by December 2015

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DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

To promote spatial planning Establishment of a Established Land Use Annual Report There is no Land Land Use Director: LED and proper land use within Land Use Management Management Use Management Management Ditsobotla Local Municipality Committee by 30 Committee Committee Committee December 2015 established

Development and Approved Ditsobotla Quarterly Reports Old Land Use Approved Review Director: LED approval by council of Land Use Scheme Management Ditsobotla Land the amalgamated Scheme in place Use Scheme Ditsobotla Land Use Scheme by 30 March 2016

Formalisation of all Number of informal Quarterly Reports 5 informal 2 2 Director: LED informal settlements settlements formalised settlements exists within the municipal area by 2016

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KPA 3: LOCAL ECONOMIC DEVELOPMENT & SPATIAL RATIONALE

THEMATIC AREAS Local Economic Development STRATEGIC OBJECTIVES Create an environment that promotes development of the economy and facilitate job creation INTENDED OUTCOME Improve municipal economic viability OUTCOME 9 Output 3 Implementation of the community works programme Ten Point Plan 2 Enhance the municipal contribution to job creation and sustainable livelihoods through LED

DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

Develop a vibrant, growing Development and Council-adopted Local Council Resolutions Draft LED Strategy LED Strategy Review Director: LED economic environment approval of a feasible Economic Quarterly Reports in place approved by conducive for investment Local Economic Development Strategy council attraction and retention of Development Strategy existing. by council by 30 September 2015

Development and Council-adopted Quarterly Reports There is no Cooperatives and Review Director: LED adoption of a strategy Cooperatives and Cooperatives and SMMEs Support to support cooperatives SMMEs Support SMMEs Support Strategy adopted and SMMEs by Strategy Strategy by council December 2015

Development and Council-adopted Quarterly Reports There is no Outdoor Advertising Review Director: LED approval of the Outdoor Outdoor Advertising Outdoor Policy adopted by Advertising Policy by Policy Advertising Policy council Council by 30 December 2015

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DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

Develop a vibrant, growing Development and Council-adopted Annual Reports New Adoption of the Review Director: LED economic environment approval of Street Street Trading Policy Street Trading conducive for investment Trading Policy and By- and By-laws Policy and By-laws attraction and retention of laws by 30 June 2016 existing

To build coordination and Facilitate the Number of Mayoral Annual Report There is no 1 0 Director: LED partnership between Ditsobotla establishment of a LED Advisory Forums Mayoral LED Local Municipality, business multi-sectoral Mayoral established Advisory Forums and stakeholders for economic Advisory Forum on growth and development local economic development matters by 30 December 2015

To create an enabling Implementation of the Number of jobs Quarterly Report 2 000 1 000 1 000 Director: environment for job creation Expanded Public Works created through the Infrastructure and businesses to thrive Programme Extended Public Services Works Programme

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DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

To create an enabling Implementation of the Number of jobs Quarterly Reports 56 200 200 Director: LED environment for job creation Community Works created through the and businesses to thrive Programme for job Community Works creation Programme (own capital projects)

Implement a targeted Percentage budget Quarterly SCM New 40% 60% Municipal Manager preferential spent on tenders Reports procurement approach awarded to local for the advancement of SMMEs and local businesses contractors by 30 June 2016

Monitor the Number of reports Quarterly Reports New 4 4 Director: LED implementation of submitted to council Social Labour Plans by on the implementation mining businesses in of the Social Labour the municipal area Plans (SLPs) by mining businesses

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DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

To create an enabling Facilitate the provision Number of reports on Quarterly New 2 2 Director: LED environment for job creation of business SMMEs programmes and businesses to thrive development services supported to emerging entrepreneurs

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DITSOBOTLA FINAL IDP 2015/16

KPA 4: FINANCIAL VIABILITY AND MANAGEMENT

THEMATIC AREAS Financial and Administrative Capacity STRATEGIC OBJECTIVES To improve overall financial management in municipalities by developing and implementing appropriate financial management policies, procedures and systems INTENDED OUTCOME Improve municipal economic viability OUTCOME 9 Output 3 Implementation of the community works programme Ten Point Plan 2 Enhance the municipal contribution to job creation and sustainable livelihoods through LED

DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

Enhancement of the Improve the levels of Number of payment Annual Reports New 4 4 Chief Finance municipality’s revenue service payment in awareness campaigns Officer areas targeted as per annum problematic

Increase the annual % revenue collection Section 71 Reports 71% 90% 95% Chief Finance revenue collection rate rate achieved per Officer to 95% month

Increase the levels of % increase in staff Section 71 Reports New 100% 100% Chief Finance staff and councillors and councillor Officer paying municipal accounts services

Reduce the billing debt % reduction in the Section 71 Reports The billing debt 6% 10% Chief Finance book by 10% billing debt book book currently Officer stands at R45 000 000

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DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

Development and implement a Review and implement Number of finance Quarterly Reports 0 5 5 Chief Finance finance turnaround strategy financial policies to be management policies Officer in line with the reviewed annually provisions of the MFMA

Ensuring the Number of current Quarterly New 1:1 1:1 Chief Finance implementation of assets cover current Officer prudent municipal liabilities investments and cash- flow

Improve financial % of audit findings Quarterly Reports The municipality 100% 100% Chief Finance accounting capacity as resolved as per follow received a Officer well as controls and up audits Disclaimer for the procedures past three financial years

100% compliance with % compliance with R0 100% 100% 100% Chief Finance NT reporting National Treasury Officer requirements reporting requirements

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DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

To ensure compliance with the Tabling of the MTREF Council-adopted Annual Report Budget approved MTREF Budget and MTREF Budget Chief Finance provisions of the Municipal Budget by the 30 May MTREF Budget on 30 May 2014 related policies and related Officer policies Finance Management Act annually adopted by Council adopted by Council

Submission of the Submission of AFS to Annual Report AFS submitted 2014/2015 2015/2016 Chief Finance Annual Financial AG by August each August Financial Financial Officer Statements Statements to AG on year Statements compiled and time compiled and submitted to submitted to AG by AG by August August

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DITSOBOTLA FINAL IDP 2015/16

KPA 5: GOOD GOVERNANCE AND PUBLIC PARTICIPATION

THEMATIC AREAS Good Governance and Public Participation STRATEGIC OBJECTIVES Promote a culture of participatory and good governance INTENDED OUTCOME Entrenched culture of accountability and clean governance OUTCOME 9 Output 1 Implement a differentiated approach to municipal financing, planning and support Output 3 Implementation of the community works programme Output 5 Deepen democracy through a refined ward committee model Output 7 Single window of coordination

DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

To provide leadership to Develop a credible IDP Process Plan Annual Report Process Plan IDP Process IDP Process Municipal Manager strategic planning and target integrated development adopted by 30 August adopted late Plan adopted by Plan adopted setting which is aligned to the plan annually annually 30 August 2015 by 30 August budget 2016

Integrated Annual Report 2014/2015 IDP Reviewed IDP Reviewed IDP Municipal Manager Development adopted adopted adopted and adopted and by 30 May annually implemented implemented

Number of community Annual Report 2 2 2 Municipal Manager consultations held annually on IDP process

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DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

To provide leadership to Develop a credible Number of Annual Reports 2 4 4 Municipal Manager strategic planning and target integrated development stakeholders setting which is aligned to the plan annually consultations budget meetings held annually on IDP process

To promote accountability and Establishment of the Internal Audit function Annual Report No Internal Audit Establishment Internal Audit Municipal Manager transparency in the Internal Audit function established by 30 process functional management of municipal June 2016 undertaken affairs Establishment of the Internal Audit Annual Report No Internal Audit Internal Audit Municipal Manager Internal Audit Committee Committee Committee established by 1 July functional 2016

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DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

To improve financial accounting Develop an audit action % of audit findings Quarterly Reports The municipality 95% 100% Chief Finance Officer capacity as well as controls and plan to address all resolved as per follow received a procedures for the achievement previous audit queries up audits Disclaimer for the of a clean audit outcome past three financial years

Develop and implement Council-adopted Anti- Annual Report There is no Policy Anti-Corruption Review Municipal Manager an Anti-Corruption Corruption Policy Policy adopted Policy by council

Approval of the Service SDBIP approved Annual Report 2014/15 Approved 2015/2016 2016/217 Director: Corporate Delivery and Budget within 28 days after SDBIP in place SDBIP SDBIP Services Implementation Plan by budget approval approved by 28 approved by 28 mayor annually June 2015 June 2016

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DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

To enhance organizational Tabling of section 52 Number of section 52 Quarterly reports 4 4 4 Municipal Manager culture to be performance- reports as required in reports tabled annually oriented to realize municipal terms of the Municipal before council vision Finance Management Act, 56 of 2003

Tabling of the Mid-year Mid-year Performance Quarterly Mid-Year Mid-year Mid-year Municipal Manager Performance Assessment Report Performance Performance Performance Assessment Report as table before council by Assessment Report Assessment Assessment required in terms of 31 January each year tabled late during Report tabled by Report tabled section 72 of the 2014/15 FY 31 January by 31 January Municipal Finance 2016 2017 Management Act, 56 of 2003

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DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

To strengthen and enhance Review and Council-approved Quarterly Reports The current Council- Review Communications community participation in the Implementation of the Public Participation Policy/Strategy is approved Public Manager affairs of the municipality Public Participation Policy/Strategy by 30 old Participation Policy/Strategy December 2015 Policy/Strategy

Provide capacity- Number of capacity- Annual Report 1 2 2 Director: Corporate building programmes for building programmes Services councillors for councillors implemented

Provide capacity- Number of capacity- Annual Report - 2 2 Director: Corporate building programmes for building programmes Services ward committees for ward committees implemented

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DELIVERY AGENDA (TARGETS)

Objective Strategy Key Performance Measurement Baseline 2015/2016 2016/2017 Responsibility Indicator Source and Frequency

To enhance communication in Develop and implement Communications Annual Reporting There is no Communications Review Communications the Ditsobotla Local Municipality a Communications Policy adopted by Communications Policy adopted Manager Policy council by 30 Policy by council December 2015

Number of municipal Quarterly 0 4 4 Communications newsletter publications Manager issued annually

To ensure that the designated Mainstream special Number of projects Annual Reports New 10 12 Manager: Office of groups are integrated into the programmes in all the targeted at designated the Mayor municipal plans and activities municipality’s groups implemented programmes and annually projects

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SECTION E: PROJECTS AND PROGRAMMES

1. PROJECTS 2015/2016 - 2017/2018 (MIG FUNDED)

Project Description Estimated Cost Projects 2015/2016 2016/2017 2017/2018 Committed 15/16

Construction of Roads and Stormwater in Bodibe R14,400,000 R4,192,359 R4,192,359 R10,207,641 - Construction of Roads and Stormwater in Bakerville Construction of Roads and Stormwater in Tlhabologang R10,500,000 R10,500,000 Construction of Access Roads in Itsoseng R5,709,052.64 R3,687,346.73 R5,709,052.64 R8,000,000 - Construction and Upgrade of Roads and Stormwater in R20,392,168.14 R13,557,000 R20,392,168.14 Boikhutso Construction of Access Roads in Itekeng R6,000,000 Construction of Sports Facility in Tlhabologang R5,000,000 Construction of Roads and Stormwater in Ga-Maloka Refurbishment of Internal Roads in Lichtenburg R6,650,000 R4,000,000 Construction of Roads and Stormwater in Blydeville R8,000,000 Extensions Construction of Roads and Stormwater in Springbokpan R4,122,280 TOTAL R31,936,705.73 R40,793,579.78 R30,857,641 R21,122,280

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ESKOM (INEP) FUNDED PROJECTS

PROJECT DESCRIPTION PLANNED NO OF CONNECTIONS COST 2013/2014 2014/2015 2015/2016

Ga-Maloka 140 3 274 992 3 274 992 0 0 Tlhabologang Ext 4 RDP 600 14 035 680 14 035 680 0 0 Tlhabologang Ext 5 RDP 600 14 035 680 14 035 680 0 0 Tlhabologang Ext 6 RDP 400 9 357 120 9 357 120 0 0 Verdwaal Phase 2 Ext 54 1 263 211.20 1 263 211.20 0 0 TOTAL 1794 41 966 683.20 41 966 683.20 0 0

PROJECT DESCRIPTION PLANNED NO OF CONNECTIONS COST 2013/2014 2014/2015 2015/2016

Ditsobotla Farm Dwellers Houses 24 316 008 316 008 0 0 Ditsobotla In-fills 60 974 700 974 700 0 0 TOTAL 84 1 290 708 1 290 708 0 0

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NGAKA MODIRI MOLEMA DISTRICT MUNICIPALITY PROJECTS

WATER PROJECTS

PROJECT WARD BUDGET BUDGET BUDGET 2015/2016 2016/2017 2017/2018

Bodibe Ward 17 Water Reticulation 11,17,18 & 19 R15,000,000 R12,000,000 Boikhutso Bulk Water Supply 1 & 2 R708,317 R0 Ga-Motlatla Water Supply 13 R5,000,000 R15,400,000 Greater Lichtenburg Bulk Water Supply 1,2,3,4,5 & 6 R0 R28,300,000 Itsoseng Bulk Water Supply Phase 2 (Bulk Supply Line) 7,8 & 9 R3,630,000 R0 R0 Matile 1 Water Supply 19 R5,000,000 R2,000,000 Matile 2 Water Supply 19 R0 R12,000,000 Meetmekaar and Springbokpan Water Supply 19 R8,000,000 R20,000,000 Rietvlei Water Supply 14 R6,000,000 R300,000 R0 Verdwaal 2 Bulk Water and Reticulation 10 R1,900,000 R0 R0 TOTAL R12,238,317 R33,300,000 R89,700,000

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SANITATION PROJECTS

PROJECT WARD BUDGET BUDGET BUDGET 2015/2016 2016/2017 2017/2018

Blydeville Outfall Sewer Projects 3 & 4 R10,200,000 R1,500,000 R0 Ditsobotla Rural Sanitation R0 R2,000,000 R7,000,000 Itekeng & Biesiesvlei Bulk Sanitation 21 R800,000 R0 R0 Itsoseng Waste Water Treatment Plant Upgrade 8 & 9 R0 R0 R3,000,000 Lichtenburg Waste Water Treatment Plant 1,2,3,4,5 R0 R0 R3,000,000 Tlhabologang Bulk Water Supply (Waste Water Treatment Works) 15, 16 & 21 R25,000,000 R2,700,000 R0 Tlhabologang Bulk Sanitation (Monitoring & Evaluation) 15, 16 & 21 R8,365,184 R1,350,000 R0 Tlhabologang Bulk Sanitation (Outfall Sewer) 15, 16 & 21 R24,250,000 R10,000,000 R1,700,000 TOTAL R68,615,184 R17,550,000 R17,700,000

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SECTOR PROJECTS/PROGRAMMES: HUMAN SETTLEMENT

SUB-PROGRAMME PROJECT PROJECT NAME TOTAL APPROVED NUMBER CONTRACTUAL PROJECT TARGET BUDGET (R’000)

B07080004 Itsoseng 619 619 12,293 Project Linked Subsidies TBA Itsoseng Ext 3 200 6,379 Integrated Residential Development TBA Blydeville Ext 4 4,009 Programme: Phase 1 – Planning and TBA Lichtenburg Ext 4 (CRU)/Social Housing 200 4,030 Services Feasibility People’s Housing Process B07010006/1 Ditsobotla PHP 710 8,879 B00110005/1 Boikhutso 245 245 3,190 B07080007 Sheila 250 250 6,379 Informal Settlement Upgrading B12100008 Tlhabologang 141 141 1,686 New Coligny 4,026 TBA Tlhabologang 40 3,767 B03020003 Verdwaal 401 401 18,373 B07080005 Bodibe 248 248 9,369 Rural Housing and Communal Land Rights New Ditsobotla 2000 2 000 6,379 TBA Ditsobotla Villages 1 040 6,818 New Boikhutso Extension 1 Senior Citizens 2030 5,104 Priority Projects TBA Itsoseng Phase 2 500 5,869

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SECTOR PROJECTS/PROGRAMMES: OTHER

PROJECT NAME FUNDER ESTIMATED COST

Lichtenburg Game Breeding Centre: Infrastructure Upgrade Initiative North West Parks and Tourism Board R15,000,000 Lichtenburg Weighbridge NW Department of Roads and Transport Construction of Lichtenburg Weighbridge NW Public Works and Roads Rehabilitation of 40km Road D933 & D2095 between Lichtenburg & Gelukspan (Duffield & NW Public Works and Roads Sephaku) Rehabilitation of Road D408 between Itsoseng & Goedgevonden through Springbokpan NW Public Works and Roads Rehabilitation: Sections of Road P28/1 between Mahikeng and Lichtenburg NW Public Works and Roads Patchwork on Road P183/1 between Lichtenburg & Deelpan Phase 2 NW Public Works and Roads Agri Park: Springbokpan Department of Agriculture and Land Reform Construction of 150 beds hospital in Lichtenburg NW Department of Health

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UNFUNDED PROJECT LIST

PROJECT DESCRIPTION ESTIMATED VALUE (R)

Grootfontein Highmast Lights 2,500,000 Upgrading & Maintenance of Streetlights in Tlhabologang 2,500,000 Grasfontein Highmast Lights 2,500,000 Itsoseng Highmast Lights 7,600,000 Itsoseng Streetlights Maintenance 100,000 Blydeville Ext 3 Highmast Lights 5,000,000 Boikhutso Sports Field Electrification 1,500,000 10 MVA Supply Increase at the Main-Substation 10,000,000 10MVA Reticulation to Industrial Site and Midtown 5,320,000 Cable for Boikhutso Substation to 3 rd Supply Point 1,080,000 Cable for 3 rd Supply Point to Thabo Mbeki Drive 1,020,000 Cable for Thabo Mbeki Drive Substation to Lang Street Substation 528,000 Cable for Main Substation to Lang Street Substation 780,000 Cable: Main Substation to 4 th Avenue Substation 780,000 Cable: 4 th Avenue Substation to 12 th Avenue Substation 660,000 Cable: 3 rd Supply Pont to 12 th Avenue Substation 900,000 Cable: NWK Silos to Showground 600,000 Switch Gear Replacement at Main Substation 2,400,000 Upgrade ten Main Substations and Lines 4,200,000 Cable: 12 th Avenue Substation to 8 th Avenue Substation 600,000 Cable: 8 th Avenue Substation to 6 th Street 504,000 TOTAL 44,572,000

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PROJECT DESCRIPTION ESTIMATED VALUE (R)

Construction of Internal Roads in Tlhabologang/Coligny 10,000,000.00 Springbokpan Construction of Roads 5,000,000 Sheila Construction of Roads 9,500,000 Boikhutso Ext 2 Construction of Roads 9,000,000 Lichtenburg Upgrading of Roads 10,000,000 Itsoseng Construction of Roads 10,000,000 Bodibe Construction of Bus Route 10,000,000 Blydeville Construction of Roads 6,000,000 Verdwaal 1 & 2 Construction of Roads 6,300,000 Itekeng Construction of Roads (RDP Extension) 10,000,000 Ga-Motlatla Upgrading & Construction of Internal Roads 2,100,000 Bodibe Upgrading & Maintenance of Internal Roads 9,450,000 Coligny Upgrading & Maintenance of Internal Roads 3,000,000 Tlhabologang Construction of New Internal Roads 4,000,000 Bakerville & Grasfontein Upgrading on Internal Roads 4,000,000 Tlhabologang (proper) Taxi Rank 11,000,000

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PROJECT DESCRIPTION ESTIMATED VALUE (R)

Springbokpan Bulk and Internal Water Supply 5,500,00 Sheila Bulk and Internal Water Supply 6,500,000 Grasfontein Bulkwater Supply 2,500,000 Coligny/Tlhabologang Eradication of Buckets 3,800,000 Verdwaal Water Supply 4,500,000 Sheila Water Infrastructure Upgrade 4,500,000 Bakerville Water Reticulation & Yard Connections 1,500,000 Grootfontein Water Reticulation & Yard Connections 1,500,000 Bokkraal/Vlakpan Water Reticulation & Yard Connections 1,500,000 Bodibe Water Supply Network Upgrade 4,000,000 Bodibe Individual Yard Water Connections 3,000,000 Grasfontein/Malegaga/Rietvlei Water Reticulation & Yard Connections 1,000,000 Ga-Motlatla Upgrade & Extension of Existing Water Network 3,000,000 Boikhutso Individual Water Connections 4,000,000 Sheila Sewerage/Sanitation 4,000,000

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PROJECT DESCRIPTION ESTIMATED VALUE (R)

Provision of Rebuilding Tennis courts and Basketball in Burgersdorp 2,000,000 Provision of Two Tennis courts in Boikhutso 400,000 Provision of additional sport facilities in Blydeville 600,000 Rehabilitation of parks and playing grounds in Lichtenburg 30,000 Provision of basic Sport and Recreation facilities in Sheila 300,000 Upgrade basic Sport and Recreation facilities in Tlhabologang 300,000 Upgrade of basic Sport and Recreation facilities in Verdwaal 300,000 Provision of basic Sport and Recreation facilities & upgrade soccer/netball fields Grasfontein/Bakerville 400,000 Provision of additional Sport facilities in Boikhutso 300,000 Provision of basic Sport and Recreation facilities in Springbokpan 300,000 Provision of basic Sport and Recreation facilities and upgrade soccer/netball fields in Welverdiend/Rietvlei/Malegaga 400,000 Provision of basic Sport and Recreation facilities and upgrade soccer/netball fields in Bokkraal/Vlakpan/Grootfontein 400,000 Upgrade/expand sport and recreation facilities at Sonop Hall 400,000 Upgrading existing sport field in Itekeng 100,000 Upgrading & extending Sport Complex in Itsoseng 1,000,000 Upgrading of existing parks in Boikhutso 280,000 Upgrading and maintenance of parks in 100,000 Maintenance of existing parks in Itsoseng 50,000 Upgrading of parks in Itsoseng. (Ward 9) 100,000 Multi-Purpose sport facility (Indoor Sports) in Coligny 2,600,000 Fencing & ablution facilities at Cemeteries in Boikhutso 180,000 Upgrading & Fencing of Cemeteries in Lichtenburg/Burgersdorp 200,000 Cleaning of Cemeteries in Itsoseng (Ward 7) 30,000 Provision of Cemetery Site in Itsoseng 400,000 Upgrading & fencing of cemetery in Springbokpan 30,000 Upgrading & fencing of cemetery in Springbokpan 30,000

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PROJECT DESCRIPTION ESTIMATED VALUE (R)

Upgrading & fencing of cemetery in Welverdiend, Rietvlei/Malegaga 100,000 Upgrading & fencing of cemetery in Bokkraal/Vlakfontein/Grootfontein 100,000 Upgrading & Fencing of cemetery in Bodibe 400,000 Building of ablution blocks at Bodibe Cemetery (Ga-Motuba) 200,000 Upgrading and fencing cemetery in Matile 30,000 Upgrading of Coligny Testing Station 3,000,000

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PROJECT DESCRIPTION FUNDER

Provision of Household Electricity: Boikhutso Ext 3 INEP Provision of Household Electricity: Tlhabologang INEP Provision of Household Electricity: Bodibe INEP Provision of Household Electricity: Matile INEP Provision of Electricity Vending Facility at Itsoseng INEP Provision of Household Electricity: Putfontein INEP Provision of Household Electricity: Blydeville Ext 3 Ditsobotla LM

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PRIORITY PROJECTS AS IDENTIFIED BY COUNCIL FOR POSSIBLE FINANCING THROUGH EXTERNAL MECHANISMS/PARTNERSHIPS

ROADS AND STORM-WATER

PROJECT DESCRIPTION ESTIMATED VALUE

Refurbishment of Lang Street: Lichtenburg (3km x 7.2m) R12,000,000 Refurbishment of Scholtz Street: Lichtenburg (2.9km x 24m) R12,000,000 Refurbishment of Burgers Street (2.9km x 14m) R12,000,000 Refurbishment of Pretorius Street: Boikhutso (1.1km x 7.2m) R4,500,000 Refurbishment of Bergsma Street: Lichtenburg (1.1km x 7.2m) R4,500,000 Refurbishment of 13 th Avenue: Burgersdorp (1.7km x 7.2m) R25,000,000 Refurbishment of 6 th Street: Burgersdorp (2.4km x 7.2m) Refurbishment of 2 nd Street: Burgersdorp (2.4km x 7.2m) Refurbishment of 7 th Avenue: Burgersdorp (1.2km x 7.2m) Refurbishment of 6 th Avenue: Burgersdorp (1.7km x 7.2m) Burgersdorp Internal Roads (10km) R15,000,000 Bakerville Internal Roads (4km) R6,000,000 Resurfacing of Internal Roads in Boikhutso (3km) R6,000,000 Refurbishment of Khudu and Tilo Streets: Boikhutso (200m x 8m) R1,200,000 Refurbishment of Vincent Street: Coligny (100m x 9m) R5,000,000 Refurbishment of Brits Street: Coligny (600m x 7m) Refurbishment of Lubbe Street: Coligny (800m x 7m) Refurbishment of 9 th Street: Coligny (600m x 7m) Pothole Repairs and Resurfacing: Coligny (7km x 7m) R20,000,000 Construction of New Roads: Coligny (4km) R10,000,000 Refurbishment of Roads (next to Cemetery in Itsoseng) (1.3km x 7m) R5,000,000

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ROADS AND STORM-WATER

PROJECT DESCRIPTION ESTIMATED VALUE

Construction of Internal Roads and Storm-water Drainage: Bodibe (3km) R6,000,000 Pothole Repairs and Resurfacing of Roads: Blydeville (5) R800,000 Refurbishment of Orchard Street: Blydeville (400m x 7m) R1,000,000 Pavement and Storm-water Management System: DLM R2,500,000 Construction of Internal Roads: Verdwaal (4km) R6,000,000 Construction of 2km Palisade Wall along N14 R2,000,000

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SPORT FIELDS

PROJECT DESCRIPTION ESTIMATED VALUE

Construction of Sports Field: Ga-Motlatla R3,000,000 Construction of Sports Field: Ga-Maloka R3,000,000 Construction of Sports Field: Biesiesvlei R3,000,000 Construction of Sports Field: Bakerville R3,000,000 Upgrading of Coligny Stadium R3,000,000 Upgrading of Itsoseng Stadium R3,000,000 Construction of Sports Facility in Bodibe R3,000,000

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SECTION F: FINANCIAL PLAN (d) Ensuring that drinking water and waste water management meets the required quality standards at 4. MTREF BUDGET OVERVIEW: EXECUTIVE SUMMARY all times; (e) Unavailability of own-funding for capital budget; and 4.1. Introduction (f) Inability to raise capital/borrowing.

The 2015/2016 Medium Term Revenue and Expenditure Framework and The following budget principles and guidelines directly informed the the Multi-year Budget has been prepared to reflect the three year plan of compilation of the 2015/16 MTREF: Ditsobotla Local Municipality. In addition, the directive from National Treasury based on MFMA circulars No 66, 67, 70 and 72 were used as the (a) Tariffs need to remain or move towards being cost bases for preparation of this budget. reflective and a process of restructuring the tariffs for utility services for instance water and sanitation National Treasury has emphasized that the following areas needs to be should be considered, the exercise is very intensive given attention: where gathering of information to develop a cost reflective model should be done correctly. (a) Revenue Management – Billing Systems; (b) Collecting Outstanding Debts – Political (b) There will be no budget allocated to national and Commitments; provincial funded projects unless the necessary grants (c) Pricing Service Correctly – Management of Rebates to the municipality are reflected in the national and and Subsidies; provincial budget and have been gazetted as required (d) Under spending on repairs and maintenance; and by the annual Division of Revenue Act. (e) Spending on low priorities – Luxury furnishing and excessive catering (c) In MFMA Circular No. 70 municipalities were strongly advised to take note of the Cabinet resolution of 23 The main challenges experienced in the 2015/2016 Budget can be October 2013 by which all national and provincial summarized as follows: departments, constitutional institutions and all public entities are required to implement cost containment (a) The increased cost of bulk purchases and arrears on measures with effect of January 2014. The cost Eskom account; containment measures must be implemented to (b) The need to re-prioritise expenditure within the eliminate waste, reprioritise spending and ensure existing resource envelope given the cash flow savings on six focus areas namely, consultancy fees, realities and declining cash position; no credit cards, travel and related costs, advertising, (c) The state and lack of maintenance for infrastructure catering and event costs as well as costs for maintenance; accommodation. Municipalities were subsequently

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strongly urged to take note of the cost containment The cash flow position of the municipality is expected to be under pressure measures as approved by Cabinet and align their for 2015/2016, a conservative approach to spending and utilization of budgeting policies to these guidelines to the maximum Municipal assets will ensure that this matter is addressed. extent possible. 4.2. Consolidated Overview Over and above the guidelines from National Treasury, the budget was also influenced by the following: The total budget of the municipality is R413 million which comprises of R 375 million Operating Budget and R37 million for total Capital Budget, € The performance of 2014/2015 budget was used details for the Multi-year Budget are given in the table below: as baseline.

€ CPI guidelines from National Treasury except

were specific sector increases are prescribed. 4.3. BUDGET SUMMARY AND ANALYSIS € Tariff and property rate increases should be affordable and generally not to exceed inflation as Budget Year Budget Year Budget Year Details measured by the CPI except where adjustment 2015/16 2016/17 2017/18 are justified and where price increase is prescribed or determined outside the Total Operating Budget R375,745,000 R393,780,000 R415,832,000 municipality’s powers. Total Capital Budget R37,392,000 R43,703,000 R41,669,000 In order to ensure sustainability of vision and financial viability of the municipality in the long term, municipal tariffs have adjusted as follows: Total R413,137,000 R437,483,000 R457,501,000

Water 5.6% 4.3.1. Medium Term Outlook 2015/2016 – 2017/2018 Electricity 12.2%

Property rates 5.6% 4.3.1.1. Capital Budget Sewerage 5.6%

Refuse Collection 5.6% The Capital Budget is directly informed by the needs of the community Miscellaneous 5.6% submitted through the IDP process. The Capital Budget is mainly funded through Grant Funding in terms of DoRA. The municipality will still ensure that the poor are protected through the indigent support scheme as per the indigent policy and debt collection strategy.

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4.3.1.2. Operating Budget

For Ditsobotla 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 and expenditure management is fundamental to the financial sustainability of every municipality.

The reality is that we are faced with development backlogs, unemployment, poverty and old infrastructure assets. The expenditure required to address these challenges will inevitably always exceed available funding; hence difficult choices have to be made in relation to tariff increases and balancing expenditures against realistically anticipated revenues.

The Operating Budget which deals with the day to day operation of the municipality to ensure service delivery to the communities has conservatively increased for the MTEF. The growth could be attributed to mainly the following:

€ Cost of bulk purchases; € Service Delivery back log; € Cost of repair and maintenance; and € Employee related cost.

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Budget Analysis

Operating Revenue per Source

NW384 Ditsobotla - Table A4 Budgeted Financial Perf ormance (revenue and expenditure) 2015/16 Medium Term Revenue & Description Ref 2011/12 2012/13 2013/14 Current Year 2014/15 Expenditure Framework Audited Audited Audited Original Adjusted Full Year Pre-audit Budget Year Budget Year Budget Year R thousand 1 Outcome Outcome Outcome Budget Budget Forecast outcome 2015/16 +1 2016/17 +2 2017/18 Revenue By Source Property rates 2 47 667 131 661 37 115 43 401 43 401 45 745 45 745 48 306 50 625 53 460 Property rates - penalties & collection charges – – – – – – – – – – Serv ice charges - electricity rev enue 2 195 461 115 623 96 928 132 103 132 103 143 486 143 486 160 991 168 719 178 167 Serv ice charges - water rev enue 2 59 193 75 045 33 087 32 385 32 385 33 020 33 020 34 869 36 543 38 589 Serv ice charges - sanitation rev enue 2 13 249 18 478 7 608 7 909 7 909 7 036 7 036 7 430 7 787 8 223 Serv ice charges - refuse rev enue 2 18 545 8 523 10 889 10 742 10 742 8 892 8 892 9 390 9 841 10 392 Serv ice charges - other 893 – – – – – – – – – Rental of facilities and equipment 1 319 673 2 477 1 629 1 629 2 928 2 928 3 092 3 240 3 422 Interest earned - ex ternal inv estments – 514 482 656 656 507 507 1 100 1 153 1 217 Interest earned - outstanding debtors 18 275 2 035 10 000 3 000 4 454 4 453 6 336 6 640 7 012 Div idends receiv ed – – – – – – – – – – Fines 6 452 364 – 563 312 308 308 325 341 360 Licences and permits 3 269 609 1 670 3 000 3 000 2 388 2 388 2 522 2 643 2 791 Agency serv ices – 739 4 235 3 500 3 500 4 338 4 338 4 581 4 801 5 070 Transfers recognised - operational 140 338 123 438 93 730 94 707 94 707 94 707 94 707 95 419 99 999 105 599 Other rev enue 2 2 999 598 6 834 4 644 2 644 1 310 1 310 1 383 1 450 1 531 Gains on disposal of PPE – 18 367 – – – – – – – Total Revenue (excluding capital transfers 507 661 478 318 295 421 345 239 335 988 349 118 349 118 375 745 393 780 415 832 Expenditureand contributions) By Type Employ ee related costs 2 183 028 120 590 138 409 145 253 145 253 120 164 120 164 145 253 152 225 160 750 Remuneration of councillors 20 183 9 827 5 040 12 910 12 910 9 034 9 034 12 910 13 530 14 287 Debt impairment 3 40 716 133 670 – 17 273 17 273 – – 28 883 30 269 31 964 Depreciation & asset impairment 2 – 8 871 32 531 10 000 3 000 4 454 4 454 32 531 32 531 32 531 Finance charges 285 6 130 3 396 – 782 782 782 1 100 1 153 1 217 Bulk purchases 2 133 294 94 155 107 139 99 000 99 000 21 449 21 449 105 000 110 040 116 202 Other materials 8 20 544 6 463 10 494 14 759 14 759 4 152 4 152 5 000 5 240 5 533 Contracted serv ices – – 12 940 12 354 12 354 12 354 12 354 16 200 16 978 17 928 Transfers and grants 7 416 6 447 10 494 – – – – 8 000 9 614 10 264 Other ex penditure 4, 5 64 253 13 022 46 952 33 690 23 657 21 384 21 384 17 000 18 147 14 674 Loss on disposal of PPE – – – – – – – – – – Total Expenditure 469 719 399 175 367 396 345 239 328 988 193 773 193 773 371 877 389 727 405 352 Surplus/(Deficit) 37 941 79 144 (71 975) 0 7 000 155 345 155 345 3 868 4 054 10 480 Transfers recognised - capital 23 159 31 597 32 529 34 772 34 772 34 772 34 772 37 392 43 703 41 669 Contributions recognised - capital 6 – – – – – – – – – – Contributed assets – Surplus/(Deficit) after capital transfers & 61 100 110 741 (39 446) 34 772 41 772 190 117 190 117 41 260 47 757 52 149 contributionsTax ation Surplus/(Deficit) after taxation 61 100 110 741 (39 446) 34 772 41 772 190 117 190 117 41 260 47 757 52 149 Attributable to minorities Surplus/(Deficit) attributable to municipality 61 10 0 110 741 (39 446) 34 772 41 772 190 117 190 117 41 260 47 757 52 149 Share of surplus/ (deficit) of associate 7 Surplus/(Deficit) for the year 61 100 110 741 (39 446) 34 772 41 772 190 117 190 117 41 260 47 757 52 149

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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 rates and services charges forms a significant percentage of the revenue basket for the municipality. Rates and service charge revenues comprise 70 per cent of the total revenue mix. Followed by operational grants and other secondary revenue at 25 per cent and 5 per cent respectively.

The table in the next page shows the % growth in terms of revenue per source.

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Description Current Year 2014/15 Medium Term Revenue

R Thousands Operating Adjusted Projected Budget % Budget % Budget % Budget Budget Actual Year Increase Year Increase Year Increase 2015/2016 2016/2017 2017/2018

Revenue by Source Property Rates 43 401 43 401 45 745 48 306 5.6% 50 625 4.8% 53 460 5.6% Property Rates – Penalties & ------Collection Charges Service Charges – Electricity Revenue 132 103 132 103 143 486 160 991 12.2% 168 719 4.8% 178 167 5.6% Service Charges – Water Revenue 32 385 32 385 33 020 34 869 5.6% 36 543 4.8% 38 589 5.6% Service Charges – Sanitation Revenue 7 909 7 909 7 036 7 430 5.6% 7 787 4.8% 8 223 5.6% Service Charges – Refuse Revenue 10 742 10 742 8 892 9 390 5.6% 9 841 4.8% 10 392 5.6% Service Charges – Others ------Rental of Facilities and Equipment 1 629 1 629 2 928 3 092 5.6% 3 240 4.8% 3 422 5.6% Interest Earned – External Investment 656 656 1 000 1 100 5.6% 1 153 4.8% 1 217 5.6% Interest Earned – Outstanding Debtors 10 000 3 000 6 000 6 336 5.6% 6 640 4.8% 7 012 5.6% Dividend Received ------Fines 563 312 308 325 5.6% 341 4.8% 360 5.6% Licenses and Permits 3 000 3 000 2 388 2 522 5.6% 2 643 4.8% 2 791 5.6% Agency Services 3500 3 500 4 338 4 581 5.6% 4 801 4.8% 5 070 5.6% Transfers Recognised – Operational 94 707 94 707 - 95 419 5.6% 99 999 4.8% 105 599 5.6% Other Revenue 4 644 2 644 1 310 1 383 5.6% 1 450 4.8% 1 531 5.6% Gains on disposal of PPE ------Total Revenue (excluding capital 345 239 335 988 256 451 375 745 393 780 415 832 transfers and contributions)

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Division of Revenue: Operational Expenditure Service Charges & Rates

Refuse Removal Sewer Water Property Rates Electricity Description 2014/15 Actual to 2015/16 2017/18 2018/17 Budgeted date Budgeted Indicative Indicative (R) (R) (R) (R) (R)

3% 4% 13% Equitable share 88,496,000 64,528,000 88,789,000 88,817,000 88,273,000

18% FMG 1,600,000 1,600,000 1,675,000 1,810,000 2,145,000 62%

MSIG 930,000 930,000 930,000 957,000 1,033,000

MIG 34,214,000 5,610,000 35,392,000 36,703,000 38,669,000

EPWP 1,181,000 827,000 1,025,000 - -

Infrastructure Skills 2,500,000 1,500,000 3,000,000 3,000,000 3,000,000 Development Grant

INEP 558,000 558,000 2,000,000 7,000,000 3,000,000

Total 129,479,000 75,553,000 132,811,000 138,287,000 136,120,000

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Other Revenue MFMA Budget Circular 72 encourages municipalities “to keep increases in rates, tariffs and other charges at levels that reflect an appropriate balance Interest-Invest between the interests of poor household, other customers and ensuring 1% the financial sustainability of the municipality”. Other Interest- Rental Debtors Fines 1% 3% Licenses 6% 0% 2% In terms of Section 15(1)(b) of the Local Government: Municipal Property Income Rates Act, No 6 of 2004, read with Council’s Property Rates Policy, the Agency 4% following reduction in market value and rebates should be granted on the rate levied for the Financial Year 2015/2016 to any owner of rateable property in the following circumstances:

• In terms of Section 17(h) of the Local Government: Municipal Grants- Oper Property Rates Act, No6 of 2004, the impermissible value of the 83% market value of a property assigned to the residential category in the valuation roll or supplementary valuation roll, be determined as R 60 000.

• Indigent households – Owner of residential property, registered in terms of Council’s approved Indigent Policy, be subsidized in accordance with the Indigent Policy and will not form part of a rebate in terms of the MPRA.

• Child-headed households – That a child-headed household

registered in terms of Council’s approved Indigent Policy, be 4.3.1.2.1. Property Rates subsidized in accordance with the Indigent Policy and will not form

part of a rebate in terms of the MPRA. The property rates show estimated revenue of R 48 million. Property rates cover the cost of the provision of general services. Determining the • Aged/Pensioners reduction, Disability grantees and Medically effective property rate tariff is therefore an integral part of the Boarded persons – that in addition to the reduction in terms of municipality’s budgeting process. National Treasury’s MFMA Circular No. Section 17(h) of the Local Government: Municipal Property Rates 51 deals, inter alia with the implementation of the Municipal Property Act, No 6 of 2004, subject to the requirements as set out in the Rates Act, with the regulations issued by the Department of Co-operative Council’s Property Rates Policy, an additional rebate be granted in Governance. The respect of sliding scale based on average monthly earnings.

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The grants subsidies operational refers to the Equitable shares, Finance 4.3.1.2.2. Service Charges Management Grant, Municipal Systems Improvement Grant, Extended Public Works Programme Grant and the ISDG. Service charges include electricity, refuse, sewer and water. The R 212.6 million is made up of the following, water R34.8 million, Refuse R 9.3 The revenue R95.4 million and is based on the Division of Revenue Act million, Sewerage R 7.4 million and electricity R 160.9 million. allocation. This revenue stream contributes 25% of the total operating revenue. As per circular 75, on the 29 January 2015, NERSA approved and published guidelines on municipal electricity prices increase for the Capital 2015/16 financial year. A guideline increase of 12.20 per cent has been This relates to conditional grants and has increased from R 34.7 million to approved based on the fact that Bulk purchases have increased by 14.24 R 37.9 million. This includes the INEP grant amounting to R2million and per cent in line with Eskom’s electricity tariff increase to municipalities. R35, 3million of MIG.

4.3.1.2.3. Interest on Debtors DoRA Allocation

Interest on debtors is guided by CPI and inflation rate as contained in Details 2014/2015 Indicative Indicative Indicative Circular 74. However it must be noted that the interest on outstanding 2015/16 2015/16 2015/16 debtors has been performing poorly. This is as a result of growing debt book of the municipality and there is no arrear collection done. Therefore MIG 34,222,000 35,392,000 36,703,000 38,669,000 the budget was reduced compared to 2014/15.

Do E 550,000 2,000,000 7,000,000 3,000,000 4.3.1.2.4. Agency Fees

The function is done on behalf of Department of roads and transport and Total Allocation 34,772,000 37,392,000 43,703,000 41,669,000 estimates for this revenue stream is R4.5 million.

4.3.1.2.5. Grants and Subsidies 4.3.1.2.6. Other Revenue

Operating Other revenue streams contribute 5% on operating revenue. Section 216 of the Constitution provides for national government to transfer resources to municipalities in terms of the annual Division of

Revenue Act (DoRA) to assist them in exercising their powers and performing their functions.

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4.4. Operating Expenditure Agreement for the period 01 July 2012 to June 2015 has come to an end hence the guideline. 4.4.1. Employee Related Cost

Overtime of the municipality is one area that needs urgent attention. The The budgeted allocation for employee related costs for the 2015/16 overtime paid is very high. As a guideline, municipalities are advised that a financial year totals R145, 2million, which equals 38 per cent of the percentage above 5 per cent would require further investigation; it needs total operating expenditure but this excludes the remuneration of to be noted that this percentage is based on total municipal remuneration councillors. The employee related budget did not change from 2014/15 and individual functions will differ owing to the nature of the service financial year because of the following: rendered. Councils overtime represent 8 per cent of its total salary budget

and needs to be seriously looked at and reduced. € The budget is under serious constrains and that

impacts negatively towards the cash flow position of 4.4.2. Remuneration of Councillors the municipality, therefore no new positions will be accommodated in the budget. The remuneration of councillors is not increase because the actual performance as indicated in table A4 ( Statement of Financial € For the first six months Council is advised not to fill Performance ) will be in line with the projected figure of R12.9million vacant positions only critical ones. including the upper limits of Public Office Bearers.

€ The standard norm of best practice in terms of 4.4.3. General Expenditure employee related cost versus the total operating cost is 35 per cent and the municipality is already at 38 per General expenditure increased with an average of 5.6%.This expenditure cent excluding remuneration of councillors. category is influenced by general inflation, diesel and petrol increases. Furthermore circular 71 incorporates the remuneration of councillors in terms of determination 4.4.4. Bulk Purchases of percentage towards opex, therefore the percentage increases to 41 per cent. The bulk purchases for water and electricity for the 2015/2016 financial year increased from R99 million to R122, 8 million which is 29 per cent of € The actual performance as per sec71 reports and the the total operating expenditure. The expenditure category is influenced by audited figure on salaries as per AFS was taken into Eskom increases and CPIX which is 12.20 per cent and 5.6 per cent on consideration. water. It must be noted that Sedibeng Water Services is billing the municipality and taking over from Botshelo Water. Circular 75 encourages municipalities to increase its budget by 4.4 per cent since negotiations are still underway. Salary and Wage Collective

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4.4.5. Repairs and Maintenance 4.5. Project List Details

Repairs and maintenance of various infrastructures has been The project list for the 2014/2015 appears on the next page. increased with an average of 5 per cent. Caution should be noted most assets of the municipality are old and they require regular repairs and maintenance for the effective service delivery to the community. The municipality also does not have the maintenance plan in place.

4.4.6. Contracted Services

Contracted Services has been increased with an average of 5.6%. This expenditure category is influenced by various contractual obligations with Service Providers.

4.4.7. Debt impairment

Debt impairment increased from R17,2 million to R28, 8million.The debt impairment calculation is supposed to be based on the collection rate of property rates and service charges. The collection rate of the municipality is at 70% therefore only R28, 8million impairment could be provided for. It must be noted that this is a non-cash item.

4.4.8. Depreciation & Asset Impairment

The municipality has budgeted R32, 5 million for asset impairment & depreciation to be able to address its aging infrastructure .

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DITSOBOTLA FINAL IDP 2015/16

PROJECTS 2015/2016 - 2017/2018 (MIG FUNDED)

Project Description Estimated Cost Projects 2015/2016 2016/2017 2017/2018 Committed 15/16

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4.6. BUDGET PROCESS 4.6.3. Consultation Process

4.6.1. Overview Section 22 of the Municipal Finance Management Act requires that after tabling the Draft Annual Budget, the municipality must avail the budget to The budget process is an effective process that the municipality must public and also invite local community to submit comments on the undertake to ensure good governance and to promote accountability. approved budget. Budgeting is primarily about priorities and choices that the municipality has to make in deciding how to meet the objectives set for service delivery. Consultative meetings will be held during April 2015 wherein the budget The budget preparation process is guided by the following legislative will be presented to the communities. requirements: 4.6.4. Schedule of Key Deadlines € Municipal Budget and Reporting Regulation; € Municipal Finance Management Act; One of the objectives of the budget timetable is to ensure that there is € Municipal System Act; and interaction between the development of the IDP and budget. The budget st € Municipal Structures Act. time table is supposed be approved by Council on the 31 of August of each year, thus 10 months before the start of the financial year. The process started with the approval of the IDP and Budget timetable in December 2014 which included the process plan for the formulation of the 4.7. BUDGET ASSUMPTION new IDP. Communities will be consulted wherein a ward based plan will be developed to deal with infrastructure requirement of the municipality. 4.7.1. Key Financial Indicators

4.6.2. Political Oversight Budget assumption / parameters are determined before the budget process, guided by the economic outlook, movement in terms of markets Section 53(1)(a) states that the Executive Mayor must provide political and the National Treasury guidelines. All steps have been taken to be in guidance over the budget process and the priorities that must guide the line with National Treasury Guidelines, however the following factor affect preparation of the budget. the municipal operation and the budget should be accordingly:

It is also entrusted to the Executive Mayor to ensure that the budget is € Anticipated high fuel price approved on time and that the Service Delivery and Budget € High Salaries Implementation plans are developed and approved. € -Increase by Eskom Key budget parameters used in developing the operation budget.

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Recovery procedures for non-payment may be commenced within 15 days Description 2015/16 2016/17 2017/18 of payment default. The electricity supply is cut and water supply is restricted when a client defaults. The municipality is committed in Inflation 5.6% 4.8% 5.6% ensuring that collection levels are improved and that credit control will be Remuneration: enforced those who can afford and not honouring their municipal accounts.

Employees - - - 4.7.5. Changing Demand Characteristics

Councillors - - - The demand for services is increasing yearly as the municipality is Fuel / Diesel 5.6% 4.8% 5.6% expected to deliver services to the poor of the poorest and pressure to reduce poverty. Water Purchases 5.6% 4.8% 5.6% Electricity Purchases 14.24% 4.8% 5.6% 4.7.6. Overview of Budget Related Policies and Amendments

General Expenditure 5.6% 4.8% 5.6% The municipality’s budgeting process is guided and governed by the relevant legislation and related policies. The purpose of the budget related

policies is to govern and guide the budget process and inform the 4.7.2. Credit Rating projections of the medium term.

The Municipality has not undergone a credit rating. Listed below with a brief description are the municipality’s budget related

policies. These policies are available from the municipality on request. 4.7.3. Borrowing and Investments The accounting policy is reviewed on an on-going basis to incorporate

changes required by the relevant Accounting Standards, apart from the The MFMA permits the borrowing for long-term if it is for the acquisition of changes to these policies as part of the budget process. capital goods such as plant, equipment and infrastructure. Currently the municipality is not considering any long term borrowing. 4.7.6.1. Virement Policy

Currently the municipality has no investments and only call accounts are The Virement policy establishes the framework for managers to manage utilized upon receipts of grants. their respective budgets within limitations, and also to ensure good

budgeting practice and effective financial management. The Virement 4.7.4. Rates, Tariffs, Charges and Timing of Revenue Collection policy has been amended to improve budgetary controls.

Accounts for rates, refuse, electricity, water and sanitation are issued on a monthly basis and are due and payable before the 15th of the month.

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4.7.6.2. Accounting Policy 4.8. DISCLOSURE ON IMPLEMENTATION OF MFMA AND OTHER LEGISLATION The accounting policy guides the preparation of the Annual Financial Statements and is reviewed each year during the preparation to ensure 4.8.1. Budget compliance with Generally Recognized Accounting standards and other guiding principles such as International Financial Reporting. The amount budget has been developed in terms of the MFMA Circular and Reporting Regulation and National Treasury Requirements. Budget 4.7.6.3. Supply Chain Management Policy has been tabled within the required legislative timeframes. It has also compiled in line with budget related policies, thus Virement Policy, The supply chain management policy was adopted and amendments are Accounting policy, Supply Chain Management Policy, Credit control and as result of council resolution. Debt collection policy, Revenue policy on tariff setting modelling, Fixed Asset Management Policy. 4.7.6.4. Credit control and Debt collection policy 4.8.2. Budget and Treasury Office The council adopted a policy a few amendments have been made to give clear indication in terms indigents, s 118 on the issuing of rates clearance A budget and treasury office has been established. and the outstanding debt. 4.8.3. Audit Committee 4.7.6.5. Tariff Policy The Audit Committee has not yet been established and shared - services The tariff policy covers levying of tariffs, fees and charges for municipal is used. services. The tariff policy details electricity, water, sewer, refuse removal and miscellaneous tariffs. 4.8.4. Municipal Public Accounts Committee

4.7.6.6. Fixed Asset Management Policy The committee has been established and is supported by various sub- committees. The asset policy is designed to ensure management of Municipal assets in efficient and effective manner with regard to acquisition, utilization, control maintenance and disposal of assets. The policy guides Directorates in their responsibility and duties for control of their assets.

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€ Lichtenburg cluster which includes Lichtenburg, 5. SECTION G: SPATIAL DEVELOPMENT FRAMEWORK 2 Boikhutso, and Blydeville. € Coligny cluster includes Coligny and Tlhabologang. 5.1. Purpose and Structure of the SDF € The Itsoseng cluster includes Sheila, Verdwaal 1 and 2, and Itsoseng. The primary purpose of the Spatial Development Framework is to present € The Bodibe cluster includes Bodibe, Springbokpan, the spatial development goals of the municipality that result from the Welverdiend and Matile/Meetmekaar. integrated consideration and sifting of spatial implications and of different sectoral issues. It must provide decision-makers with a clear frame of 5.3. Settlement Patterns mind on how and where development should occur within identified resource frames. The Lichtenburg-Boikhutso cluster is the core area of the municipality and is also located at the spatial centre of the municipality. According to the White Paper on Spatial Planning and Land Use Management, the Spatial Development Framework consists of four The majority of households and population are concentrated in the important components: western quadrant of the municipality in the area between Lichtenburg, Itsoseng and Bodibe. Approximately 60% of the total population of the € Policy for land use and development; municipality resides within this area. € Guidelines for land use management; € A capital expenditure framework showing where the A significant proportion of the population of the municipality resides on municipality intends spending its capital budget; and farms in the rural areas of the municipality (approximately 28% of the total € A Strategic Environmental Assessment. population). This figure is also somewhat higher than the comparative figures in surrounding municipalities. It implies that the planning of service The Municipal Spatial Development Framework applies to the entire delivery (with specific reference to social services) will also have to municipal area of Ditsobotla. The overall SDF serves an informant of the consider the rural areas. local spatial development frameworks contained in this section. The location of a number of land reform projects in the southern parts of 5.2. Development Concept the municipality could influence future spatial development and infrastructure requirements. These are the areas: This spatial framework takes the approach of development clusters which refers to a grouping of more than one distinctive settlement area within a € The Putfontein claim area consists of farms Putfontein specific geographical location. These clusters are: 62 IP, Vogelstruisknop 479 IP, Sterkfontein 155 IP and Omega 478 IP. The total area of this claim is 7668ha (Post Settlement Phase). 2 At the time of review the municipality was in the process of reviewing the current SDF.

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€ The Bakolobeng claim, including the farms € The R503 connects Lichtenburg in a south-eastern Rooirantjiesfontein 98 IP, Koppiesfontein 87 IP and direction with Coligny and ultimately to Klerksdorp. Rhenosterdoorns 88 IP, constituting a total land area of 6173ha (Post Settlement Phase). € The R505 traverses the study area in a north south € The Rietfontein claim area consisting of portions 3, direction. In a northern direction, it connects and 12 of portion 3 of the farm Rietfontein 54 IP, Lichtenburg with Ottoshoop and southwards to totalling 422ha. Gerdau and Ottosdal. € The Monamaladi land claim area located on the farm Holgat 63 IP constituting a total land area of 3033ha € The R52 connects Lichtenburg in a southwestern (Post Settlement Phase). direction with Itekeng and Biesiesvlei. € The Rietkuil land claim is currently in the pre- settlement phase and is located on portions 11, 12, € Parts of route R53 (which connects Ventersdorp and 13, 36 and 37 of the farm Rietkuil 53 IP. Swartruggens) transverses the eastern parts of the € The Mafethe community claim involving 104 portions study area. of Biesiesvlei 149 IO. 5.5. Open Space System 5.4. Road Network The development of an open space system for the Ditsobotla Local There is one national road traversing the study area (N14) which connects Municipality is aimed at linking all natural elements of value and the “High the western parts of Gauteng with the central parts of the North West Environmental Control Zones” through a continuous open space system. Province. A section of this national route between Ventersdorp and An isolated open space surrounded by urban settlements or other types of Sannieshof traverses the southeastern parts of the Ditsobotla Local development has little change of sustaining its biodiversity and it is only Municipality through Coligny and Biesiesvlei. when the areas are linked into an integrated system that it increases its ability to sustain biodiversity. There are a number of important main roads which links the Ditsobotla Local Municipality with surrounding municipalities and which converges on Elements which could be included in such an open space system include Lichtenburg as the core area. These include: ridges and mountains, proclaimed nature reserves, protected areas, river environments and other potential environmentally sustainable areas. This € Road R52 from Koster to Lichtenburg and further open space system area could consist of a number of main components: westwards from Lichtenburg to Mafikeng (R503). This road traverses the municipality in an east-west € A corridor along the northern boundary of the municipality direction and carries high traffic volumes. from Molopo Eye conservancy, including the northern parts of the municipality up to the intersection of R53 and the R52 in the eastern parts of the municipality. The

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possible further westward extension of this open space system to link up with the Malmanies Eye Natural Reserve € The limestone quarries and operations of AfriSam around in the Mafikeng area could be considered. Dudfield. € The limestone quarry of Lafarge between Bodibe and € The Lichtenburg Game Breeding Centre is located Springbokpan. immediately north of Lichtenburg. It will be ideal to create € The quarrying areas of Lafarge immediately west of a continuous open space network within the elements Lichtenburg and in the area northeast of the main Lafarge outlined above. There are however, an area of extensive plant at the Lichtenburg industrial area. diamond mining operations in the vicinity of Bakerville, € Extensive diamond mining activities occur in the north-western Grasfontein and Carlsonia (located north of Lichtenburg parts of the municipality specifically in the areas around Game Breeding Centre) which militates against this Bakerville, Grasfontein, and Welverdiend. Many of these proposal. operations have long been abandoned and have not been rehabilitated. € The upper catchments of the Hartsriver are located in the € State quarries are found in the northern part of the area southwest of Lichtenburg (between Lichtenburg and municipality. Itekeng/Biesiesvlei). This area is important from the point of view that it is the origin of Hartsriver that traverses a 5.7. Agriculture number of other municipalities in the western parts of the North West Province. The Hartsriver also feeds The landscape of Ditsobotla Local Municipality is largely dominated by Barberspan which is an international RAMSAR site. It is commercial agricultural activities mainly consisting of two components: thus necessary to protect the river and the adjacent area within this catchment area from inappropriate forms of € Commercial dry-land and irrigated agricultural activities development. which dominates the entire southern part of the municipality (located roughly south of the Koster- 5.6. Mining and Quarrying Lichtenburg-Mafikeng road). A large percentage of the total land area within this zone is utilized for commercial There are two important types of mining and quarrying activities which dry-land or irrigated farmland activities. impacts on the spatial development of the Ditsobotla Local Municipality. These are: € The areas located northeast and northwest of Lichtenburg are generally characterized by more extensive farming € The quarrying of limestone deposits associated with the activities mostly focusing on cattle and grazing areas. manufacturing activities of Lafarge and AfriSam.

The most notable areas in this regard include the following:

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5.8. SPATIAL DEVELOPMENT STRATEGIES Lichtenburg and Itsoseng) have sufficient capacity to deal with existing and expected future development pressures. The upgrading of existing 5.8.1. Urban integration bulk infrastructure networks in Lichtenburg as the economic core area of the municipality should ensure that the expected residential and economic This strategy aims to move away from the fragmented urban structure growth in this area could be accommodated by existing bulk infrastructure currently existing within the Ditsobotla Local Municipality and aims to networks. consolidate the individual settlement located within the various settlement clusters with each other and the Lichtenburg core area. This can be 5.8.3. Equitable access to social services achieved by filling in the unpopulated areas between these settlements with future growth where feasible. A more compact and integrated A significant proportion of households in the municipality reside on farms structure also form the basis for providing more cost-effective municipal in the rural parts of the municipal area, located far from the social services services and public transportation infrastructure. provided in the various settlements clusters and within the Lichtenburg core area. This results in high public transport costs for the poor living in At a macro municipal planning level, the integration of the various these areas to access these services. It is important these services also settlement clusters in the Ditsobotla area will be difficult to achieve in be made available to the rural communities through the development of practice. The extent of the expected future growth will also not facilitate Service Delivery Centres. the physical integration of various settlement clusters. However, at an individual settlement cluster level, the strategy of urban integration could A hierarchy of such SDCs, containing facilities such as clinics, police actively be pursued. This concept is more fully explored and implemented stations and community centres, will make these facilities accessible in in the three local level spatial development frameworks. both rural and urban areas.

5.8.2. Bulk infrastructure development 5.8.4. Land use and transportation integration

Providing bulk infrastructure could be an important tool to achieve a more Land use development and public transportation are interlinked and affect compact and integrated spatial pattern and will, in turn, result in cost each other significantly. Public transportation works most effectively in a saving when developing the bulk infrastructure. The provision of future linear pattern, as opposed to winding its way through a wide spread urban bulk infrastructure development will guide urban development. In this area. Such a linear land use pattern also benefits commuters, because it manner, bulk services will force future urban development into a more implies that residential settlements are located in close vicinity to the rational and desirable urban pattern. At the same time, the location, corridor road, placing commuters within short walking distances of such implementation and functioning on the bulk services network will be public transportation termini. rationalized. Future development, in the municipal area should thus strive to focus A further aspect of bulk infrastructure development would be to ensure that development, and especially infill development, in areas around important the existing bulk infrastructure networks (specifically in areas such as

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public transport routes. The overall function and condition of the public transport network also need to be improved. € Housing/residential areas; € Education facilities; € Health facilities; 5.8.5. Greater housing typology mix € Community centres; € Business space; The Ditsobotla municipal area is characterized by the grouping and € Open space and recreation; and concentration of housing units according to housing typologies. A greater € Street network. mix of housing typologies should thus be pursued in line with national government policy. Of importance is the location of these typologies within A detailed outline of the Land Use Budget is contained in the Spatial the different settlement clusters. Its location in each cluster should take Development Framework and Strategic Environment Assessment into account the location needs of the households living in those housing document (Section 3.3.). types, as well as other factors such as property values and accessibility to public transport services where applicable. 5.8.8. Roads and Transport

It is generally challenging to create a greater housing typology mix within Proposal for the improvement of roads and transportation network largely existing areas. Opportunities do however present themselves in proposed revolve around the improved integration of the surrounding settlements future residential developments to create areas catering for a wider range with the Lichtenburg core area. There is currently no rail commuter of housing typologies. service provided by the rail network within the Ditsobotla Local Municipality. The existing rail network mainly provides freight transport 5.8.6. Protection of High Environmental Control Zone and specifically caters for the needs of the cement manufacturing plants of AfriSam and Lafarge located within the municipality. The management and monitoring of future spatial development within the Ditsobotla Local Municipality should protect the identified high Regarding the improved integration of the surrounding settlements with the environmental control zones within the municipality. Development Lichtenburg core area the following is recommended: applicants should also be appropriately informed of location of high environmental control zones and the management guidelines for these € The upgrading of the non-surfaced secondary road from areas. its intersection from Lichtenburg-Mafikeng road (R503)

through Grasfontein and Bakerville to the intersection of 5.8.7. Land Use Budget the Lichtenburg-Ottoshoop road (R505).

The purpose of the land use budget is to estimate overall land € The upgrading of the existing non-surfaced secondary requirements of the main space occupying land uses over a 10 year road from its intersection just north of Bakerville with the period. Components addressed within the land use budget are:

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road R505 through Carlsonia and southwards to the 5.8.9. Social Amenities intersection of this road with the non-surfaced secondary road entering Lichtenburg from a north eastern direction. There is a need for 13 schools, 31 clinics and 7 community centres across Ditsobotla Local Municipality over the next 10 years. The provision is The upgrading of these two roads will improve the accessibility to based on future population growth projections, as well as norms and Grasfontein, Bakerville and Carlsonia/Welverdiend and contribute towards standards for the provision of these facilities as outlined in the Guidelines the improved integration of the Lichtenburg core area and the surrounding for Human Settlement Planning and Design. The total estimated land settlements. requirement for social facilities is approximately 53,6ha for the education facilities, 6,23ha for the clinics and 3,5ha for community centres. There are three existing main roads within the municipal areas which should be prioritized for upgrading in view of the traffic volumes on these 5.9. PROPOSED SERVICE DELIVERY CENTRE HIERARCHY roads, as well as their regional and district importance: There are four types of SDCs are proposed for the Ditsobotla Local € The upgrading of road R52 between Lichtenburg and Municipality. The hierarchy takes into account certain key variables, such Koster. The amount of traffic, especially heavy traffic, on as its intended function, the population size it serves and the geographical this road has increased over the previous years and location. In turn, the order of the SDC determines its size and type of especially since the inception of a tollgate at facilities located within it. Swartruggens as part of the N4 toll route. A significant volume of heavy vehicles responsible for transporting 5.9.1. First Order SDC cement products from a number of plants in the Lichtenburg area to the main centres in Rustenburg and The Lichtenburg CBD is identified as a first order SDC, not only because Gauteng uses this route. of the town’s population size, but also because it contains the only significant number of retail, offices, industrial, and commercial uses in the € The R503 linking Coligny with Lichtenburg. The amount Ditsobotla Local Municipality. Due to this dominance of social and of traffic on this road providing access to Mafikeng from a economic activities, Lichtenburg provides services and employment southeastern direction via the N14 is significant and opportunities for the entire municipal area. warrants the consideration for upgrading. A first order centre provides social services for the municipal area as a € The R503 between Lichtenburg and Mafikeng should also whole, providing the area with higher-order social services. It is the only be regarded as a priority due to the traffic volumes on this centre that provides the entire range of social facilities. With regard to road, particularly over weekends when this route carries educational facilities, the first order SDC should accommodate a number large numbers of commuters between Mafikeng and of primary and secondary schools as well as the region’s tertiary education Gauteng. facilities. It should provide health facilities such as the region’s hospital, as well as other high order medical facilities. Other social facilities to be

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provided by the centre include a community hall, library, police station, € A third order SDC in Bakerville to service Bakerville, post office and a large bus and taxi rank. Grasfontein and Carlsonia.

5.9.2. Second Order SDC 5.9.4. Rural SDCs

A second order SDC provides medium-order social services to settlement Rural SDCs provides low-order, day-to-day social services to surrounding clusters. It thus provides services to settlements located beyond the agricultural areas and scattered rural settlements. The typical service border of the settlement in which it is located. Such a centre should ideally radius of a rural SDC is approximately 10km and the service to be consist of primary schools, a secondary school, a community hall, a clinic provided could include a secondary school, a primary school and a small and a police station on a smaller scale than those provided in the first post office or postal point. order SDC. A reasonably sized bus and taxi rank should be provided. It is proposed that in rural areas, SDCs be developed for the following € A second order SDC in the Itsoseng-Bodibe area to purposes: service both Itsoseng-Sheila-Verdwaal and Bodibe- Matile-Meetmekaar clusters. € A rural SDC in the Grootpan area to serve the € A SDC in Coligny-Tlhabologang to serve this cluster. northeastern quadrant of the municipality, with specific focus on the rural areas within these parts It is proposed that two second order SDCs be provided in the Ditsobotla of the municipality. Local Municipality: € In Bodenstein area to serve the southeastern 5.9.3. Third Order SDC quadrant of the municipality, and possibly also providing services to the land reform areas in this A third order SDC provides low-order, day to day social services to smaller vicinity. settlement clusters. As with the second order SDCs, this SDC provides services to more than a single settlement, only on a smaller scale that the € In Gerdau to serve the southern and southwestern second order SDCs. A third order SDC should comprise a secondary rural parts and potentially also the land reform school, a primary school, post office, as well as a small square and a bus areas. Although outside the boundaries of the and taxi stop. Ditsobotla Local Municipality, it should be pursued in partnership with the Tswaing Local Municipality. The provision of three third order SDCs are proposed: € In the Rooigrond area to service the concentration € One in Itekeng-Biesiesvlei settlement cluster; of rural population in this area, in partnership with € Ga-Motlatla; and the Mafikeng Local Municipality.

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5.9.5. Housing and Land Tenure

The municipal land requirement for future settlement is based on the existing housing backlog and expected future population growth. Other factors such as prevailing residential densities, the socio-economic status and physical characteristics also have an impact on the overall extent of land requirements.

The overall land requirement for settlement expansion over the period 2005 to 2015 indicates a requirement of approximately 1020ha of land.

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SECTION H: OPERATIONAL PLAN 6.2. Ward Committees

6. Overview Section 72 – 78 of the Local Government: Municipal Systems Act (Act No.32 of 2000) requires the establishment of ward committees as a means This section provides an overview on the operational structure of the of complementing representative governance with participatory Ditsobotla Local Municipality towards meeting its constitutional mandate of democracy. In response to this requirement and the underpinning notion providing services to its communities. In order to provide effective and of making developmental government work through meaningful uninterrupted services to communities the municipality has decentralised participation of the diverse municipal constituencies, the Ditsobotla Local key functions to satellite offices in Itsoseng, Coligny, and Biesiesvlei. Municipality established 21 (twenty-one) ward committees. These committees serve as an important link between Council and the The operational framework presented in this section explains how the community on matters such as municipal budgeting, integrated current structure responds to the municipality’s inherent constitutional development planning, consideration of policies and by-laws and other mandate while at the same time presenting a shift from a fragmented, matters directly affecting communities. planning approach to a coordinated approach at both the administrative and political levels. Community Development Workers complement the work of ward committees and through their unique skills base communicate and This integrated development plan commits the municipality towards fast respond to challenges faced by vulnerable sectors of the municipal tracking implementation of its key performance objectives and priority community such as the disabled, women and the aged. areas by moving from traditional methods of convening Council meetings to endorse decision on matters that need to be covered within the 6.3. Municipal Portfolio Committees Integrated Development Plan. The Portfolio Committees have been established in terms of sections 79 & 6.1. The Political Structure 80 of the Local Government: Municipal Structures Act (Act No.117 of 1998) to assist the Mayor in performing his/her duties. The following The Ditsobotla Local Municipality is a collective Executive Committee portfolio committees have been created: system with the Mayor and Speaker designated as fulltime Councillors. The Municipal Council is made up of 42 (forty-two) Councillors of which an € Corporate Services and Human Resources; equal number of 21 (twenty-one) are elected on a proportional € Infrastructure, Roads and Electricity; representative basis (PR) and wards (Ward Councillors) respectively. A € Finance; list of Councillors is attached as an annexure. € Local Economic Development, Conservation, Tourism, and Agriculture Development; € Planning and Development; € Public Safety, Health and Disaster Management; and

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€ Special Projects, Education, Sports, Arts and Culture. All positions in the current structure are funded. All section 56 managers’ positions are filled except for Community Services and LED & Planning. 6.4. The Ditsobotla Local Municipality’s Administration 6.5. Political and Administrative Inter-face The Integrated Development Plan of the Ditsobotla Local Municipality is implemented by the administration headed by the Municipal Manager. In achieving greater integration and effective relationship between the The municipality has the following Directorates: political and administrative wings of the municipality it would become important to implement the following mechanisms: € Office of the Municipal Manager; € The Budget and Treasury Office (BTO)/Office of (a) Alignment of the Portfolio Committee to the Directorates; the Chief Finance Officer; (b) Adopt a cluster planning approach that will ensure that € Directorate: Corporate Services; decisions around planning is done in a more integrated € Directorate: Technical services; manner; € Directorate: Local Economic Development & (c) Ensure consistency in the frequency of Senior Planning; and Management Meetings; and € Directorate: Community Services (d) Budget Steering Committee.

Graph: Macro Structure of the Ditsobotla Local Municipality 6.6. Technical Working Committees

The technical working committees are established to ensure that issues raised at all levels are addressed in a holistic manner and allows the Ditsobotla Local Municipality to enhance intergovernmental relations with national and provincial governments. The objectives and strategies contained in this IDP are borne from this notion of inter-directorate coordination and fast tracked decision making at both the administrative and political levels.

The working groups will meet on a monthly basis to address issues of mutual importance especially on cross cutting planning matters.

The following technical committees are therefore established:

(a) Corporate Services and Human Resources; (b) Infrastructure, Roads and Electricity;

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(c) Finance; (d) Local Economic Development, Conservation, Tourism, and Agriculture Development; (e) Planning and Development; (f) Public Safety, Health and Disaster Management; and (g) Special Projects, Education, Sports, Arts and Culture.

6.7. Senior Management Meeting

The Senior Management (meetings between the Municipal Manager and senior managers) will be held on a weekly basis as a means of enhancing inter-directorate coordination. These meetings must be geared at making an assessment of the implementation of the municipal strategic objectives and setting operational imperatives/reviews.

6.8. Project Implementation Teams

The Ditsobotla Local Municipality will need to establish multi-disciplinary project implementation team as a monitoring and evaluation vehicle to fully implement IDP projects. The teams will ideally be led by the Director and/or Unit Manager to which the project responsibility resides. For purposes of reporting, these teams will be table reports (written) to the Municipal Manager on a weekly basis.

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SECTION I: MONITORING AND EVALUATION 7.1. Legal Framework for Performance Management

7. Purpose of a Performance Management System Various pieces of legislation inform the performance management system of municipalities. This includes the following legislations: Performance management in local government is legislated and regulated in terms of the Local Government: Municipal Systems Act (Act No.32 of € The Constitution of the Republic of South Africa, 1996 2000) as amended through the Systems Amendment Act (Act No.7 of (section 152); 2011); the Local Government: Municipal Finance Management Act (Act € The White Paper on Local Government (1998); No.56 of 2003) and related regulations. € The Local Government: Municipal Systems Act (Act No.32 of 2000); Chapter 3(7) of the Municipal Planning and Performance Management € Municipal Planning and Performance Management Regulations (2001) define a Performance Management System as ‘a Regulations 2001 (24 August 2001); framework that describes and represents how the municipality’s € Regulations for Municipal Managers and Managers cycle and processes of performance planning, monitoring, reporting directly to Municipal Managers (1 August measurement, review, reporting and improvement will be conducted, 2006); organized and managed, including determining the roles of the € The Local Government : Municipal Structures Act (Act different role players.’ No.117 of 1998); and € The Local Government: Municipal Finance A performance management system is crucial in ensuring that the Management Act (Act No.56 of 2003). municipality meets it service delivery targets and general constitutional mandate. The purpose of PMS can be summarised as: The Ditsobotla Local Municipality has developed a Performance Management System to manage organisational € Tracking and measuring the performance of an performance in line with relevant legislation. organisation against pre-determined objectives; € Identifying performance failures and applying corrective 7.1.1. The Local Government: Municipal Systems Act (Act No.32 measures or interventions on a timely basis; of 2000) € Management of change and improvement of organisational performance; and Sections 38 – 40 of the Act require a municipality to establish a € Aligning individual efforts towards organisational performance management system and establish mechanisms for its objectives and priorities. monitoring and review.

Section 41 deals with the core components of a performance management system which must include:

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(d) The number of jobs created through municipality’s (a) Appropriate key performance indicators as a yardstick local economic development initiatives including for measuring performance, including outcomes and capital projects. impact, with regard to the municipality’s development (e) The number of people from employment equity target priorities and objectives set out in its integrated groups employed in the three highest levels of development plan; management in compliance with a municipality’s (b) Measurable performance targets with regard to each approved employment equity plan. of those development priorities and objectives; (f) The percentage of a municipality’s budget actually (c) Performance monitoring and review at least once per spent on implementing its workplace skills plan. year; (g) Financial viability with respect to debt coverage, (d) Steps to improve performance with regard to those outstanding debtors in relation to revenue; and cost development priorities and objectives where coverage. performance targets were not met; (e) A process of regular reporting to the council, other 7.1.3. The Local Government: Municipal Finance Management political structures, political office bearers and staff of Act (Act No.56 of 2003) the municipality; and the public and appropriate organs of state. The Act contains some provisions related to performance management in a municipal context. Section 21 of the Act requires the integrated 7.1.2. The Local Government: Municipal Planning and development planning and budget processes to be mutually consistent Performance Management Regulations (2001) and credible. It further requires a municipality to develop a Service Delivery and Budget Implementation Plan within 28 days after adoption of Section 43 of the regulations prescribes general key performance the Budget and IDP. indicators which each municipality must plan for and report against. They are: The Services Delivery and Budget and Implementation Plan interprets the five-year Integrated Development Plan and three year Budget into a (a) The percentage of households with access to basic twelve-month contract between the administration, council, and community level of water, sanitation, electricity and solid waste thereby expressing the goals and objectives set by the council as removal. quantifiable outcomes to be implemented by the administration. The (b) The percentage of households earning less than SDBIP is an expression of the objectives of the municipality, in quantifiable R1100 per month with access to free basic services. outcomes that will be implemented by the administration for a specific (c) The percentage of a municipality’s capital budget financial year (i.e. 2013/2014). actually spent on capital projects identified for a particular financial year in terms of the municipality’s The service delivery targets in the SDBIP form the basis for the integrated development plan. performance plans of senior managers (Accounting Officer and Directors).

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It enables the Municipal Manager to monitor the performance of senior resources, information management, and assets managers, the Mayor to monitor the performance of the Accounting Officer management. and for the community to monitor the performance of the municipality as € Financial Management Perspective measures each activity contains outputs, outcomes and timeframes. financial management with regard to operating revenue and expenditure, investments, and capital The SDBIP is compiled on an annual basis and includes a 3 year capital expenditure. budget programme. The SDBIP is yet another step forward to increase € Governance Process Perspective deals with how the principle of democratic and accountable local government as the municipality performs with regard to stakeholder enshrined in Section 152(a) of the Constitution. engagement and relationships and covers public participation, functionality of ward committees, access The SDBIP is in essence the management and implementation tool which to information, and intergovernmental relations. sets in-year information such as quarterly service delivery and monthly budget targets and links each service delivery output to the budget of the 7.3. Managing Organisational Performance municipality. It further indicates the responsibilities and outputs for each of the senior managers and the top management team, the resources to be The management of performance is based on a cause-and-effect used and the deadlines set for the relevant activities. relationship as per figure below.

7.2. The Municipal Performance Model Graph: Cause-effect Relationship

The Ditsobotla Local Municipality currently uses the Municipal Scorecard as a model for performance management. The model covers five perspectives of financial management; institutional development; service delivery; municipal development; and governance processes . These five perspectives are also derived from the five key performance areas of local government which the municipality uses for planning and reporting.

€ The Service Delivery Perspective measures the extent to which a municipality is performing in the The performance management cycle typically entail the steps illustrated delivery of services and products. below: € The Institutional Development Perspective assesses performance in respect of municipal

resource management which include human

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Graph: Performance Management Cycle 7.5. The Service Delivery and Budget Implementation Plan

As outlined above, the Service Delivery and Budget Implementation Plan is management and implementation tool which sets in-year information such as quarterly service delivery and monthly budget targets and links each service delivery output to the budget of the municipality.

Each senior manager’s performance is based on the targets outlined in the Service Delivery and Budget Implementation Plan which forms part of the performance contract.

7.6. Performance Contracts

All senior managers enter into a performance contract with the municipality. The essence of contracting performance is to specify 7.4. The Organisational Scorecard objectives and targets that must be met by an employee and serve to communicate the expectations of the employer. The organisational scorecard is designed around the five key performance areas as identified by the Department of Cooperative Government and The performance of all senior managers is assessed on quarterly basis. Traditional Affairs. The five KPAs are: Performance contracts are required to be subjected to public scrutiny in terms of legislation. € Municipal Transformation and Organisational Development; 7.7. Auditing and Quality Control € Service Delivery and Infrastructure Development; All performance audits will occur within the framework of the Municipal € Local Economic Development; Planning and Performance Management Regulations, 2001. The Internal € Financial Viability and Management; and Audit function and the External Audit will continuously audit the € Good Governance and Public Participation. performance reports and produce a quarterly and annual audit report

respectively. For each key performance area, the council set objectives to be met within the period of the Integrated Development Plan with the key objectives describing the main tasks to be performed. The objective set in terms of the key performance areas need to be outcome and impact focused.

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7.8. Schedule for Performance Reviews

Performance Reviews occurs quarterly as follows:

First Quarter July – September Second Quarter October – December Third Quarter January – March Fourth Quarter April – June

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