1 Oversight: Select Committee on Finance Gert Sibande District Presented by: Mr. M.A. Ngcobo, Pr. Tech. Eng, MSAICE, IMESA, FMWISA – (Municipal Manager) Mr. A.Y. Singh, BCom (Acc), BCompt, CMA, IMFO – (Chief Financial Officer) 5 May 2008 Cape Town - Parliament
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1 Oversight: Select Committee on Finance Gert Sibande District Presented by: Mr. M.A. Ngcobo, Pr. Tech. Eng, MSAICE, IMESA, FMWISA – (Municipal Manager)
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Oversight: Select Committee on Finance
Gert Sibande District
Presented by:
Mr. M.A. Ngcobo, Pr. Tech. Eng, MSAICE, IMESA, FMWISA – (Municipal Manager)
The Financial, Technical & Corporate Service quantitive and qualitative information pertains to Gert Sibande District Municipality, which renders support services to the following Municipalities:
• Albert Luthuli Local Municipality
• Dipaleseng Local Municipality
• Govan Mbeki Local Municipality
• Lekwa Local Municipality
• Mkhondo Local Municipality
• Msukaligwa Local Municipality
• Pixley Ka Seme Local Municipality
Total population : 985 632
Total area served by GSDM : 31 842 km²
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IntroBudget info current
financial yearComplianceWith MFMA
Policies & By-Laws
Relations in Collaboration with National & Provincial Depart.
Spending & PerformanceConditional Grants
Municipalities RelationsWith National & Provincial
• CFO provides information:– On returns of Provincial and National Treasury– On returns of the Department of Provincial and Local Government– On request by the Provincial Local Government and Housing– National Department of Statistics
• Delegations from other municipalities regularly received and briefed on best financial practices.
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MUNICIPALITIES’ RELATIONS WITH NATIONAL AND PROVINCIAL DEPARTMENTS
• The electronic interaction with National and Provincial Departments on sharing of statistics for oversight purposes is working satisfactorily.
• The SCM training provided by National Treasury has been beneficial to all Municipalities.
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• MUNIMEC FORUM EXECUTIVE MAYORS’ FORUM
• MUNICIPAL MANAGERS’ FORUM CHIEF FINANCIAL OFFICERS’ FORUM
• TECHNICAL MANAGERS’ FORUM CORPORATE SERVICES/ HR FORUM
• DISTRICT COMMUNICATION FORUM HIV/ AIDS COUNCIL
• IDP REPRESENTATIVE FORUM PREMIER’S CO-ORDINATING FORUM
INTERNAL DISTRICT / LM FORUMS
• Decisions taken at other supporting Departmental forums are being relayed to Municipal Managers’ Forum for recommendation and implementation.
EXTERNAL DISTRICT / LM FORUMS
• These assist District/ LM’s to ensure consistency of working relationships within the GSDM’s area of jurisdiction.
MUNICIPALITIES’ RELATIONS WITH NATIONAL AND PROVINCIAL DEPARTMENT
FORUMS CURRENTLY BEING HELD AT DISTRICT LEVEL:-
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CAPACITY CONSTRAINTS - CHALLENGES
• Grant income is a predetermined amount which can not be enhanced, while actual levy income could have exceeded budgeted amount.
• National Treasury guidelines limited the year on year increase at ± 7%.
• Large numbers of local people moved from Rural / farming areas to urban areas.
– This situation resulted in services being unable to cope with demand resulting in huge informal settlements with poor services.
• Unfunded mandates – With the current Government initiatives reform – Municipalities are faced with taking over services without adequate funding being awarded e.g. Health Services.
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CAPACITY STRENGTHS
– SKILLS ASSESSMENT IN GSDM
• Technical expertise is not viewed as a constraint as this municipality has ten qualified Engineering Technicians.
• There is however a gap between the existing knowledge of technicians and that specifically required by the municipality.
• FET College: (Artisan & Supervisors): Plumbing, Masonry, Electrical, Building = 20 • Traffic College: Traffic Officers = 13
GSDM BURSARY STUDENTS [PMG note: photo’s have been removed]
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CURRENT STUDENTS AT TERTIARY INSTITUTIONS
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MUNICIPAL IDP ALIGNMENT TO THE PGDS
• Each of the Provincial Priorities as encapsulated in the PGDS are assigned Strategic Thrusts that serves as vehicles to ensure envisaged results.
• These Strategic Thrusts constitutes programmes that are implemented by the respective Departments within the Province with respect to functions therein.
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MUNICIPAL IDP ALIGNMENT TO THE PGDS
• These Provincial Departments’ programmes subsequently constitutes part of the programmes and projects within the Municipal IDPs, given the focal point of respective Departments in a set period.
• Programmes of the respective Provincial Departments are also influenced by the issues emanating from the Municipal IDPs, which are deliberated upon during varying Public Participation mechanisms such as IDP Fora, IDP Technical Committee and other IGR Structures at the disposal of the District.
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MPGDS Priorities
Social Dev Infrastructure
Social Dev Infrastructure
Sustainable Environmental Development
Sustainable Environmental Development
Good Governance
Good Governance
Human Resource
Development
Human Resource
Development
Social Development
Social Development
GSDM KPA 4 GSDM KPA 3
GSDM KPAs 2 & 6
GSDM KPA 1
GSDM KPA 5
Economic Development
Economic Development
GSDM KPA3
Relationship between GSDM’s IDP & MPGDS
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SERVICE DELIVERY: MUNICIPAL SUPPORT • Disaster Management:
– Supply equipment & vehicles (R3.8m)- 7 x Fire fighting vehicles -(Refer to photo ‘A’)
• Road & Storm water Support: - Supply of equipment & vehicles (R23m)
- 7 x Graders - (Refer to photo ‘B’)
- 7 x Tripper Trucks - (Refer to photo ‘C’)- 7 x Back actors - (Refer to photo ‘D’)
- 7 x Front End Loaders
• Community Participation (7 LM’s):
- Supply equipment & vehicles (R1m)
- 7 x Light Duty Vehicles
- 115 Loud hailers (For each ward in the 7 LM’s)
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PHOTO ‘A’: FIRE ENGINES[PMG note: photo’s have been removed]
PHOTO ‘C’: TIPPER TRUCKS[PMG note: photo’s have been removed]
PHOTO ‘D’: BACKACTORS[PMG note: photo’s have been removed]
PHOTO ‘B’: GRADERS[PMG note: photo’s have been removed]
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SERVICE DELIVERY
• Refurbishment of 60 Bulk Water and Sanitation Plants within GSDM area of jurisdiction - (SLA negotiations with the LM’s)
• The GSDM has started with the determination of the status quo (Assessment) in relation to the needs and functionality of bulk infrastructure especially that of the purification plants situated in the seven Local Municipalities in the District. This will give a good indication of the funding required for the refurbishment as well as the operation and maintenance cost of all the plants situated within the District’s jurisdictional area.
GIS Data Cleansing • The benefit of the district wide GIS and the data cleansing project
will assist GSDM and its family of LM’s to plan and manage development and revenue collection more efficiently and effectively.
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ESTIMATED BACKLOG
Municipality No of household
without Water
% of Total in relation to
District Backlog
No of household
without Sanitation
% of Total in relation to
District Backlog
Estimated Rural Water & Sanitation
Backlog
Albert Luthuli 21,537 26% 40,403 42% 61,940
Msukaligwa 1,866 2% 4,216 4% 6,083
Mkhondo 7,812 9% 14,797 15% 22,609
Pixley Ka Seme
10,299 12% 10,906 11% 21,205
Lekwa 16,946 20% 14,975 16% 31,921
Dipaleseng 15,129 18% 2,562 3% 17,691
Govan Mbeki
10,088 12% 8,047 8% 18,135
GSDM 83,677 95,906 179,584
SERVICE DELIVERY
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Summary of Funding Requirements
ADD. PROJECTS REQUIRED I.T.O PCF RESOLUTION- 13 APRIL 2007
Water Loss & Demand Management Study
High priority interventions in terms of Water loss & Demand Management Study
TOTAL R 27,563,000 R 57,305,000
WATER SANITATION
Total Households within the GDM (STATS SA) 242,936
Percentage of total Households without services 24% 37%
SERVICE DELIVERY
Financial Year GSDM Funding Secured
MIG Funding Secured Total Funding Secured Funding Required Shortfall
2007/08 R 90,931,004.00 R 41,433,646.50 R 132,364,650.50 R 132,364,650.50 R 0.00
2008/09 R 92,500,000.00 R 30,801,110.50 R 123,301,110.50 R 123,301,110.50 R 0.00
2009/10 R 0.00 R 18,573,611.00 R 18,573,611.00 R 688,357,292.67 R 669,783,681.67
2010/11 R 0.00 R 14,304,611.00 R 14,304,611.00 R 340,315,115.67 R 326,010,504.67
Future R 0.00 R 172,527,171.67 R 172,527,171.67
Sub - Totals R 183,431,004.00 R 105,112,979.00
Totals R 288,543,983.00 R 1,456,865,341.00 R 1,168,321,358.00
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Estimated funding needed to ensure sustainable Operations & Estimated funding needed to ensure sustainable Operations & Maintenance of Bulk Water & Sanitation servicesMaintenance of Bulk Water & Sanitation services
MUNICIPALITY POPULATION POP. Est. cost – M & O
Est. April 2007 % Total
(Stats SA)
ALBERT LUTHULI 201 861 20.48 14 805 284
DIPALESENG 41 150 4.17 3 014 553
GOVAN MBEKI 239 395 24.29 17 559 588
LEKWA 113 285 11.49 8 306 285
MKHONDO 163 456 16.58 11 985 919
MSUKALIGWA 137 822 13.98 10 106 342
PIXLEY KA SEME 88 663 9.00 6 506 229
TOTALS: 985 632 100.00 72 291 428
SERVICE DELIVERY
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CONCLUSION / REMARKS • Already established partnerships are with Ugu DM and Mhlathuze Water – Amanzi. • Need to enhance the capacity constraints by exploring areas where shared services
approach may benefit delinquent municipalities.
• Attraction of professional staff with relevant expertise and appropriate remuneration levels.
• Service Level Agreements should be promoted with constituent municipalities.
• Note be taken that GSDM is providing funding and support to over 60 potential students within the region.
• The GSDM is currently in a process of forging a partnership with the Traditional Leaders to enhance & improve Co-operative Governance in order for municipalities, in finalising their compliance with the Property Rates Act, will receive the co-operation of the Traditional Leaders.
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Re a lebogaThank youSiyabonga
Re a lebogaThank youSiyabonga
‘Striving to Excel in Good Governance & Quality Infrastructure’