City of uMhlathuze Strategic Budget Planning Tool

1. November 2004 City of uMhlathuzeStrategic Budget Planning Tool Project Background Presentation

2. Presentation Contents • Introduction Dirk Pretorius – City of uMhlathuze • Project Background Dirk Pretorius – City of uMhlathuze • Implementation Process Craig Perritt – Intermap • Project Milestones and Budget Craig Perritt – Intermap • Beta Software Demonstration Craig Perritt – Intermap • Ongoing Developments Craig Perritt – Intermap, Joy Ndwandwe - ASALGP • Questions & Answers All

3. Introduction: City of uMhlathuze • Council’s mission is “to develop uMhlathuze as the industrial, commercial and administrative centre within the natural beauty of the region, providing a range of efficient municipal services thereby ensuring economic development, dynamic growth and the improvement of the quality of life for all” • City of uMhlathuze situated on north-east coast of KwaZulu-Natal • Consist of amalgamation of Empangeni, Richards Bay, Esikhawini, Ngwelezane, Nseleni, Vulindlela and Felixton as well as the rural areas under Amakhosi Dube, Khoza, Mkhwanazi, Mbuyazi and Zungu

4. Introduction: City of uMhlathuze (cont) • Considered the economic powerhouse of Zululand, comprising of a population of close to 300,000 and a total municipal land area of 796 km2 • Demarcation code KZ282 – included with six other local municipalities to represent the DC28 area (uThungulu region)

5. Introduction: IDP Review Process • In accordance with section 34 of the Municipal Systems Act • Budget and IDP alignment • Public participation process through community and ward information meetings – October 2004 • IDP Forum meetings – Oct/Nov 2004 • Various task team meetings – November 2004 • Draft IDP to Exco/Council • Provincial multi-sector IDP forum • Community consultation process • Approval of final IDP/Budget to Exco and Council

6. Introduction: Budgeting Process • 2005/2006 Budget timetable submitted to Council – August 2004 • Issuing of 2005/2006 multi-year budget guidelines – September 2004 • Submission of 2005/2006 multi-year draft Capital projects – November 2004 • Submission of 2005/2006 multi-year draft Operating estimates – December 2004 • Draft 2005/2006 multi-year budget and IDP submitted to Exco/Council and PG/NT – March 2005

7. Introduction: Budgeting Process (cont) • Community consultation process – April 2005 • Tabling of revised 2005/2006 multi-year budget and IDP, incorporating inputs from community/PG/NT to Council for approval - May 2005 • 2005/2006 multi-year budget and IDP submitted to PG/NT and publication of thereof • Establish and complete performance evaluations on functional outcomes identified in IDP/operational plans

8. Introduction: Strategic Planning • Formalisation of Council’s objectives and strategies • Prioritising of strategies for developing 2005/2006 multi-year budget • Alignment of the draft capital and operating estimates with the “reviewed” IDP • Submission of draft 2005/2006 multi-year budget in STRATEGIC format (Capex and Opex linked to Council’s strategic objectives) to Finance committee/Exco/Council

9. Project Status • Need was identified to develop a “user-friendly” system • Outcomes Based Budgeting Tool (OBBT) • OBBT will be utilised during the discussions and finalisation of the 2005/2006 multi-year budget • Demonstration of the system to follow

10. System demonstration Live demo or screenshots depends on internet connectivity available Beta Demonstration

11. Enhancements to the Planning Model with ASALGP funding Integration / Communication with Municipal Financial System (ProMIS) Presentation of Actual Expenditure against Budget Ongoing monitoring tool as well as the planning tool it now is Strategic level approach (IDP Strategy level and not lowest level approach) Enhancement Project Anticipated programme – completion in January 2005 Ongoing Developments

12. Questions & Answers