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AMATHOLE DISTRICT MUNICIPALITY 2015/16 DRAFT INTEGRATED DEVELOPMENT PLAN & BUDGET. Background. ADM developed its 5-year strategic plan linked to the term of Council in 2011 (2012-2017 IDP) The Plan was reviewed in 13/14 and 14/15 financial years
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AMATHOLE DISTRICT MUNICIPALITY2015/16 DRAFTINTEGRATED DEVELOPMENT PLAN & BUDGET
Background • ADM developed its 5-year strategic plan linked to the term of Council in 2011 (2012-2017 IDP) • The Plan was reviewed in 13/14 and 14/15 financial years • The 15/16 Draft IDP marks the 3rd review of our 5 year strategic plan • This draft document is as a result of many interactions with various stakeholders, sector departments, local municipalities and community representatives, as reflected in the IDP Process Plan adopted by Council on 22 August 2014
Legislative Context • Municipal System Act 32 of 2000 requires municipalities to adopt a 5 year Integrated Development Plan (IDP) that is reviewed annually in accordance with the assessment of its performance measurements and to the extent that changing circumstances so demand. • Municipal Finance Management Act 56 of 2003 requires the Mayor of a municipality to coordinate the processes for preparing the annual budget and for reviewing the IDP and budget related policies to ensure that they are mutually consistent and credible.
IDP Review Process • District IDP Framework and IDP/Budget process plan were adopted by Council on 22/08/14 • Process Plan outlines timeframes of events, structures involved to ensure achievement of key milestones and deliverables • Key organisational arrangements were established for the review process: IGR, DIMAFO, Rep forum, IDP and Budget steering committees, Sector Plan and District Planning Coordination Forums • Particular attention was paid to the IDP, SDBIP & Budget linkages, district-wide analysis, integration and alignment of plans
The Municipal Vision Amathole District Municipality: Commitment towards selfless, excellent and sustainable service to all our communities
Access to Water • The proportion of Amathole households with access to piped water has increased since 2001 from 112 400 households (48.6%) to 166 600 households (70.1% of households) in 2011.
Sanitation • The proportion of Amathole households with access to a flushing toilet has increased from 29 000 households (13.8% of households) in 2001 to 41 300 households (17.3% of households) in 2011 • Households with no access to proper toilet facilities has decreased significantly from 98 500 households (43.1% of households) in 2001 to 40 600 households (17.2% of households) in 2011
Sanitation cont… • Bucket system in all formal areas has been eradicated • The remaining areas are the informal settlements, due to zoning challenges at LMs • ADM is in the process (15/16) of developing a policy on the temporary/alternative service provision to informal settlements and farms
Municipal Approach on Needs Assessment • Great Kei utilized ward councilors to collect the priorities • Nkonkobe utilised the 50 days of service delivery event to refine ward priorities and the IDP Rep Forum to confirm these • Nxuba utilized the IDP/Annual Report Roadshows • Mbhashe conducted ward based planning • Mnquma utilized CDW’s, Traditional Leaders and Ward Committees to collect the priorities • Ngqushwa and Amahlahi utilized previous year’s issues and verified from communities • ADM Departments conducted sector specific analysis and utilized IDP/Annual Report Roadshows comments
OBJECTIVESMunicipal Transformation & Institutional Development • Ensure ADM performs optimally in all its assigned powers and functions by 2017 • To attract, retain, build capacity and maximise utilization of district human capital by 2017 • Ensure integrated and responsive Information Communication Technology function by 2017 • To ensure ADM has a fully operational and effective Fleet Management function by 2017 • Mainstreaming of Special programmes by 2017
Municipal Transformation & Institutional Development cont • Facilitate Sustainable and self-sufficient livelihoods in Rural Communities by 2017 • Ensure coherent strategic Spatial Development Framework to guide development by 2017 • To ensure that local municipalities are empowered to render services that are within their powers and function by 2017 • To promote effective communication of ADM’s business to its stakeholders by 2017
Basic Service Delivery & Infrastructure Investment • Provision of adequate, potable and sustainable water services infrastructure by 2018 • Provision of sustainable and environmentally friendly sanitation and services to all communities by 2018 • To ensure reduction of the prevalence of communicable diseases by 2017 • Facilitate Sustainable coordination of disaster relief and response by 2017 • Enhance the provision and standardisation of fire services by 2017
Basic Service Delivery & Infrastructure Investment • Ensure that solid and medical waste is managed in an integrated, environmentally friendly and sustainable manner throughout the district by 2017 • All households to have access to public transport facilities, within 2km walking distance by 2022 • Facilitate development of sustainable and viable settlements by 2014 • Develop, conserve and maintain heritage sites by 2017 • Ensure efficient and effective procurement of goods and services by 2017
Local Economic Development • To promote holistic sustainable regional economic development by 2030; • To promote compliance with the Municipal Health Legislation throughout the district by 2017
Municipal Financial Viability & Management • To ensure 43% recovery of costs incurred to provide water and sanitation services by 2017 • To ensure 100% utilisation of budget by 2017 • To ensure sound and sustainable management of municipal finances by 2017 • To ensure ADM Assets are adequately managed and monitored by 2017 • To ensure that local municipalities are empowered to render services that are within their powers and function by 2017
Good Governance and Public Participation • To ensure clean and accountable governance in the district by 2017 • To facilitate coordination, cooperation and joint planning between the spheres of government by 2017 • To promote learning and sharing, both domestically and internationally by 2017 • Mainstreaming of Special programmes into ADM programmes by 2017 • To ensure a district-wide coordination of integrated planning, implementation, monitoring and evaluation by 2017
Good Governance and Public Participation • To ensure that Local Municipalities are empowered to render services that are within their powers and functions by 2017 • To promote effective communication of ADM’s business to its stakeholders by 2017 • To improve compliance of business premises with respect to Municipal Health Services legislation by 2017 • To deepen local democracy through community participation by 2017
Newly Developed and Comprehensive Reviewed Sector Plans • New • Fleet Management Strategy • HIV/AIDS/STI/TB and Cancer Strategy • Disaster Management Plan • Comprehensive • Employment Equity Plan
Principles • 7.5% salary increases and 2.5% notch increase with salary related benefits also increasing by 7.5% • Medical Aid 12% increase and other benefits 8% • General expenses & repairs and maintenance increased 6.19% • Electricity increased by 13% • Bulk Water increased by 9% estimate • Performance Bonuses : between 0 and 14% of overall package • Top slice equitable share and LRG by R85 million for internally funded projects Allocated available budget in the same ratio as the prior year • R10 million for vacancies – critical posts • R2.8 million for movable capital requirements • Funding envelopes initially based on prior year expenditure patterns but due to significant deficit changed basis to current year expenditure and cut further • Thedraft tariffs for 2015/16 will only be increased by 6%, in line with the average inflation and the maximum growth set by National Treasury • ADM has adopted the balanced budget principle to ensure sustainability (i.e. expenditure must equal income) • Expenditure requirements need to be tailored to fit available revenue streams
Analysis of 15/16 Budget • 62% of 15/16 total income is Grant funding, which must be ring fenced for specific functions (R1.2 billion) • Core function of providing Water & Sanitation in the form of service charges only contributes 12% towards income base • Depreciation, Leave Redemption Provision, Bad Debt Provision and Post Retirement benefits amount to R398 million – this exceeds the amount in reserves, so the requirement that these should be cash backed cannot be met • Past consumer payment trends have resulted in a need to provide for 80% of the debt book as a provision for bad debts • 32% of overall expenditure is committed to salaries and salary related costs • If the grant funding is excluded, the percentage increases to 79% • Committed to paying R33.6 million for interest on the DBSA loan and R20 million for new financial system • The tariffs for 2015/16 are not cost reflective as budgeted salary costs, bulk water and electricity all increased beyond the inflation level
2015/16 Tariff Increases The draft tariffs for 2015/16 will only be increased by 6%, which is in line with the average inflation and the maximum growth set by National Treasury The tariffs for 2015/16 are not cost reflective as budgeted salary costs, bulk water and electricity all increased beyond the inflation level The tariffs as tabulated below are VAT exclusive
2015/16 Tariffs Domestic consumers – first 6kl free - a form of relief for domestic consumers which is a R 107.46 saving per month Indigent consumers – will receive first 10kl free This relief is funded from the Equitable Share allocation
Registered Indigents In terms of ADM’s policy, if a household earns less than three times the old age government social grantin a month, excluding the child support grant, qualify to register as an indigent Get 10 kl free water a month Pay no basic water charges Don’t pay flat rate charges Pay no water or sanitation connection fee Pay reduced water deposit fee VIP & Bucket clearance is for free No charge for fire services Apply at any ADM Office to register Need proof of income, ADM account, affidavit proving income and employment status
