MAKHUDUTHAMAGA LOCAL MUNICIPALITY DRAFT 2012/13 IDP/BUDGET REVIEW SC/13.1/03/2012 30 MARCH 2012 Draft MLM 2012/13 IDP/Budget Review Page 1 GENERAL INFORMATION I. Executive Committee Members (i) Cllr M.A Matlala (Mayor) (ii) Cllr .H.R Masemola (Portfolio Chairperson Infrastructure) (iii) Cllr M.O Nchabeleng (Portfolio Chairperson Corporate Services) (iv) Cllr M.A Mampane ( Portfolio Chairperson Finance) (v) Cllr M.E Mndebele ( Portfolio Chairperson Community Services) (vi) Cllr M P Lerobane ( Portfolio Chairperson LED) (vii) Cllr N M.Matjomane (Portfolio Chairperson Planning) (viii) Cllr K R. Maisela (Deputy Chairperson Planning) (ix) Cllr M M.Tala (Deputy Chairperson LED ) (x) Clr M F.Madiba (Deputy Chairperson Corporate and Shared Services) II. Addresses The Makhuduthamaga Local Municipality Stand No 1 Groblersdal Road Private Bag X434 Jane Furse Jane Furse 1085 1085 III. Contacts M.E Moropa Tel: 013 265 8600 Fax: 013 265 1975 Website: http:www.makhuduthamaga.gov.za Acting Municipal Manager Draft MLM 2012/13 IDP/Budget Review Page 2 TABLE OF CONTENTS NO DESCRIPTION PAGE NO i Mayoral foreword 7 ii Overview by the Acting Municipal Manager 8 iii Acronyms / Abbreviation 9 1 Introductory orientation and executive summary 12 1.1. Introductory Orientation 12 1.2. Executive Summary 12 1.3 Geo political location of MLM and identification 12 1.4 Policy and legal context of the IDP 19 1.5 Powers and Functions 21 1.6 Institutional arrangements for IDP processes and implementation 23 1.7 MLM Process plan for 2012/13 IDP Review 25 1.8 National Outcomes 27 1.9 MEC Assessment for 2011/12 IDP 27 1.10 Public Participation 30 2 Analysis Phase :Situational analysis 31 2.1 Demographic analysis 31 2.1.1 MLM Age and Gender Profile 31 2.1.2 MLM Age Distribution 32 2.1.3 Employment Profile of MLM 33 2.1.4 Employment by Sector Departments 33 2.1.5 Income levels within MLM 34 2.2 Spatial rationale 35 2.2.1 Spatial analysis 35 Draft MLM 2012/13 IDP/Budget Review Page 3 2.2.1.1 Current Settlement patterns 35 2.2.1.2 Hierarchy of Settlements 36 2.2.1.3 Growth Points and Opportunities 36 2.2.1.4 Land for LED opportunities 37 2.2.1.5 Current land claims in MLM municipal area 39 2.2.1.6 Environmental analysis 44 2.3 Basic Service Delivery and Infrastructure Development 47 2.3.1 Water 47 2.3.2 Sanitation 49 2.3.3 Electricity 50 2.3.4 Housing 57 2.3.5 Refuse removal 67 2.3.6 Roads and Stormwater drainage system 69 2.3.7 Public Transport 86 2.3.8 Telecommunication 87 2.3.9 Free Basic Services 87 2.4 Economic analysis 87 2.4.1 Structure of the economy 87 2.4.2 Economic Production 89 2.4.3 Competitive and comparative advantage 92 2.4.4 Tourism 93 2.5 Financial Viability 94 2.5.1 Brief analysis of statements of financial position, financial performance and 94 cash flow 2.5.2 Grants and subsidies 94 Draft MLM 2012/13 IDP/Budget Review Page 4 2.5.3 Existing revenue 95 2.5.4 Audit opinion 95 2.5.5 Credit control and debt collection 96 2.5.6 Investments 96 2.5.7 Budget and Treasury 97 2.5.8 Revenue management 97 2.5.9 Supply chain management 97 2.5.10 Asset management 97 2.5.11 Risk, fraud and corruption management 97 2.6 Good governance and public participation 97 2.6.1 Ward committees 99 2.6.2 Community Development Workers 99 2.6.3 Women empowerment 99 2.6.4 Youth empowerment 99 2.6.5 Children 100 2.6.6 Disabled persons 101 2.6.7 Traditional leaders 101 2.6.8 IGR and intergovernmental relations 101 2.7 Social analysis 101 2.7.1 HIV/AIDS 101 2.7.2 Social grants 103 2.7.3 Education 103 2.7.4 Health facilities and services 106 2.7.5 Libraries 109 2.7.6 Community centres 109 Draft MLM 2012/13 IDP/Budget Review Page 5 2.7.7 Municipal Park and cemeteries 109 2.7.8 Sports, Arts and Culture 109 2.7.9 Religion 109 2.7.10 Post offices 110 2..7.11 Social Development facilities 110 2.7.12 Community halls 110 2.7.13 Safety and Security 110 2.7.14 Traffic Services 112 2.7.15 Social cohesion 112 2.8 Municipal Transformation and Organisational Development 112 2.8.1 Institutional analysis 112 2.8.2 Staff Components and Employment Equity 113 2.8.3 Performance Management Systems 114 2.8.4 Skills needs within Municipal Council 114 2.8.5 Occupational Health and Safety 114 2.8.6 Employees Assistance Programme 114 2.8.7 Records and Registry Services 113 2.8.8 SWOT analysis 115 2.8.9 Organisational Structure 117 2.8.10 Community needs analysis 124 3 Strategies Phase 125 3.1 High level objectives 125 3.2 Values 127 3.4 National and International targets 129 3.5 KPA 1 Spatial rationale 130 Draft MLM 2012/13 IDP/Budget Review Page 6 3.6 KPA 2 Municipal Transformation and Organisational Development 131 3.7 KPA 3 Enhanced infrastructure investment and service delivery 132 3.8 KPA 4 Increased LED efforts 135 3.9 KPA 5 Improved Municipal Financial Viability 136 3.10 KPA 6 Deepen Community Participation and Good Governance 137 4 Projects phase 139 4.1 Projects implemented by MLM in the 2012/13 financial year 139 4.2 Projects implemented by SDM in the 2012/1 3 financial year 171 4.3 Projects implemented by Sector Departments in the 2012/13 financial year 174 4.4 Projects implemented by Parastatals and State Owned Enterprises in the 199 2012/13 financial year 5 Integration phase 204 5.1 Spatial rationale 204 5.2 Municipal Transformation and Organisational Development 204 5.3 Basic Service Delivery and Infrastructure 206 5.4 Economic and environmental analysis 206 5.5 Financial Viability 207 5.6 Good Governance and Public Participation 208 5.7 By laws 209 Annexure 210 A Draft 2012/13 Budget 210 Draft MLM 2012/13 IDP/Budget Review Page 7 MAYORAL FOREWORD Herein the municipality presents the 2012/13 IDP/Budget review as prescribed by section 34 of the Municipal Systems Act 32 of 2000. This process marks the first review of the 2011/12-2015/16 5 year plan. This reviewed IDP/Budget is a result of a consultative process that puts the people of Makhuduthamaga in the forefront of making their own service delivery decisions. Through this tool (the IDP) the municipality aims to redress most of the service delivery injustices and inequalities we have inherited from the previous regime. Although Makhuduthamaga is still largely dependent on the Equitable Share from the National Treasury as the source of funding, it is however encouraging to note that the collection of property rates has increased significantly. The Council and the Administration are also working tirelessly to ensure that the Nebo and Schoonoord testing stations are fully operational. It is imperative that the municipality explores its revenue generation options to ensure increased infrastructure investment. In his State of the Nation Address, the President of the Republic has emphasised the need to promote infrastructure investment projects as the cornerstone for job creation and growth. To put this pertinent issue into perspective, in his budget speech, the Finance Minister Pravin Gordhan highlighted key economic areas that underpin the country’s vision 2030. Some of these include: • Public sector infrastructure projects; • Education and skills development; • Support for emerging farmers and land reform beneficiaries. With a budget of R 103,3million, specifically for infrastructure projects this IDP/Budget review is an effort to align our service delivery programmes with this national vision. The Mayoral visit to schools in January is a sign that Makhuduthamaga is a believer in the youth as the future leaders of the country. The award giving ceremony that was held on the 23rd March is also a gesture that reiterates that the municipality is concerned about encouraging and nurturing the youth so that they can make informed decisions about shaping their future. His Worship ............................................................... The Mayor Cllr Makaeya Alfred Matlala Draft MLM 2012/13 IDP/Budget Review Page 8 OVERVIEW BY THE ACTING MUNICIPAL MANAGER The Municipal Planning and Budgeting process ensues a protracted and robust process of Stakeholder Consultations spearheaded by a dedicated team of Administration and Councillors underpinned by the following legislations: The Constitution of the Republic 108 of 1996 The Municipal Systems Act 32 of 2000 The Municipal Finance Management Act 56 of 2003 The Municipal Structures Act 117 of 1998 The Intergovernmental Fiscal Relations Act; and The White Paper on Local Government 1998 The Municipality is herein presenting projected Budget of R273.720 million of which R103.361 million is allocated for Infrastructure Development Projects and R170.358 million budgeted for Operational expenses. The Municipality derive most of its budget from national government in the form of equitable share and other government grants The municipality relying on grants is not sustainable and require of the municipality working together with our communities to develop ways and means of raising revenue to sustain the municipality. The Municipality has put systems to ensure that the expected Revenue is generated through the Revenue Generation Strategy and the proper implementation of our infrastructure projects. The Performance Management System is in place to steer the Municipality to be on tract with its founding mission.