Part 2 Supporting Documentation
2.2 Overview of alignment of annual budget with IDP
The Constitution mandates local government with the responsibility to exercise local developmental and cooperative governance. The eradication of imbalances in South African society can only be realized through a credible integrated developmental planning process.
Municipalities in South Africa need to utilise integrated development planning as a method to plan future development in their areas and so find the best solutions to achieve sound long- term development goals. A municipal IDP provides a five year strategic programme of action aimed at setting short, medium and long term strategic and budget priorities to create a development platform, which correlates with the term of office of the political incumbents.
The plan aligns the resources and the capacity of a municipality to its overall development aims and guides the municipal budget. An IDP is therefore a key instrument which municipalities use to provide vision, leadership and direction to all those that have a role to
play in the development of a municipal area. The IDP enables municipalities to make the best use of scarce resources and speed up service delivery.
Integrated developmental planning in the South African context is amongst others, an approach to planning aimed at involving the municipality and the community to jointly find the best solutions towards sustainable development. Furthermore, integrated development planning provides a strategic environment for managing and guiding all planning, development and decision making in the municipality.
It is important that the IDP developed by municipalities correlate with National and Provincial intent. It must aim to co-ordinate the work of local and other spheres of government in a coherent plan to improve the quality of life for all the people living in that area. Applied to the City, issues of national and provincial importance should be reflected in the IDP of the municipality. A clear understanding of such intent is therefore imperative to ensure that the City strategically complies with the key national and provincial priorities.
The aim of this revision cycle was to develop and coordinate a coherent plan to improve the quality of life for all the people living in the area, also reflecting issues of national and provincial importance. One of the key objectives is therefore to ensure that there exists alignment between national and provincial priorities, policies and strategies and the City’s response to these requirements.
The national and provincial priorities, policies and strategies of importance include amongst others:
• Green Paper on National Strategic Planning of 2009;
• Government Programme of Action;
• Development Facilitation Act of 1995;
• Provincial Growth and Development Strategy (GGDS);
• National and Provincial spatial development perspectives;
• Relevant sector plans such as transportation, legislation and policy;
• National Key Performance Indicators (NKPIs);
• Accelerated and Shared Growth Initiative (ASGISA);
• National 2014 Vision;
• National Spatial Development Perspective (NSDP) and
• The National Priority Outcomes.
The Constitution requires local government to relate its management, budgeting and planning functions to its objectives. This gives a clear indication of the intended purposes of municipal integrated development planning. Legislation stipulates clearly that a municipality must not only give effect to its IDP, but must also conduct its affairs in a manner which is consistent with its IDP. The following table highlights the IDP’s six strategic objectives for the 2014/15 MTREF and further planning refinements that have directly informed the compilation of the budget:
• Basic Service Delivery
• Municipal Institutional Development and Transformation
• Local Economic Development
• Municipal Financial Viability and Management
• Good Governance and Public Participation
• Integrated Spatial Development Framework
In order to ensure integrated and focused service delivery between all spheres of government it was important for the City to align its budget priorities with that of national and provincial government. All spheres of government place a high priority on infrastructure development, economic development and job creation, efficient service delivery, poverty alleviation and building sound institutional arrangements.
Local priorities were identified as part of the IDP review process which is directly aligned to that of the national and provincial priorities.
The strategy review was conducted at a three-day strategic review session held on 4 – 6 December 2013 at Misty Hills and on 19 and 20 February 2013 in house. Members of the mayoral committee, councillors, senior management and labour representatives attended the workshop.
The purpose of the workshop was the Revision of Strategic Planning 2012 – 2016 and the Performance targets and subsequent strategies. The approach followed was output-
orientated and participative by nature. In order to achieve the highest degree of consensus, information technology was utilised to achieve the highest quality information in the shortest time.
The purpose of the strategic planning session was to achieve the following outputs:
• Business Definition o Vision
o Mission
o Strategic goals and objectives framework o Core business values
o Stakeholder framework
• SWOT Analysis
• Targets
• Strategic Action Plan
• High level organisational design
Linkage with national, provincial and government manifesto priorities.
The approach followed was output-orientated and participative by nature. The input of various key stakeholders, administrative and political was gathered and documented in a facilitated workshop approach.
The needs of the communities, backlogs as identified by the departments, priorities as identified in the Strategic Review process was the basis of the medium term expenditure framework for 2014/2015 to 2016/2017.
The IDP outlines Various PLANS; which respond to Merafong vision and values; thereby directing strategic focus areas; key programmes and strategic projects that link to the Council’s capital and operating budget.
Table 25 MBRR Table SA4 - Reconciliation between the IDP strategic objectives and budgeted revenue
Table 26 MBRR Table SA5 - Reconciliation between the IDP strategic objectives and budgeted operating expenditure
Table 27 MBRR Table SA7 - Reconciliation between the IDP strategic objectives and budgeted capital expenditure
GT484 Merafong City - Supporting Table SA4 Reconciliation of IDP strategic objectives and budget (revenue)
Strategic Objective Goal Goal
Code 2010/11 2011/12 2012/13
R thousand
Audited Outcome
Audited Outcome
Audited Outcome
Original Budget
Adjusted Budget
Full Year Forecast
Budget Year 2014/15
Budget Year +1 2015/16
Budget Year +2 2016/17 Basic Service Delivery 484.907 425.624 729.218 815.644 795.964 795.964 841.206 732.149 736.926 Municipal Institutional
Development and Transformation
68.145 95.019 88.948 95.946 81.446 81.446 101.344 107.424 113.870 Local Economic Development 2 3 1 1 1 1 1 1 2 Municipal Financial Viability and
Management
256.541 312.159 384.891 426.494 415.155 415.155 432.805 480.861 506.588 Good Governance and Public
Participation
28.158 32.931 114.446 151.437 170.601 170.601 2.717 2.772 2.831 Integrated Spatial Development
Framework
325 266 380 106 380 380 10.416 10.281 10.898
Allocations to other priorities 2
Total Revenue (excluding capital transfers and contributions) 1 838.078 866.001 1.317.884 1.489.628 1.463.547 1.463.547 1.388.488 1.333.489 1.371.114 Current Year 2013/14 2014/15 Medium Term Revenue & Expenditure
Framework Ref
GT484 Merafong City - Supporting Table SA5 Reconciliation of IDP strategic objectives and budget (operating expenditure)
trategic Objectiv Goal Goal
Code 2010/11 2011/12 2012/13
R thousand Audited
Outcome
Audited Outcome
Audited Outcome
Original Budget
Adjusted Budget
Full Year Forecast
Budget Year 2014/15
Budget Year +1 2015/16
Budget Year +2 2016/17 Basic Service
Delivery
438.600 464.202 659.923 802.117 795.207 795.207 592.017 612.454 633.041 Municipal
Institutional Development and Transformation
39.410 44.888 39.208 52.099 55.944 55.944 59.301 62.859 66.631
Local Economic Development
3.046 2.992 3.777 5.435 5.379 5.379 5.702 6.044 6.407
Municipal Financial Viability and Management
85.880 82.316 59.699 232.223 204.110 204.110 215.617 228.554 242.267
Good Governance and Public Participation
252.106 260.741 385.298 446.604 486.555 486.555 351.404 372.489 394.838
Integrated Spatial Development Framework
12.008 10.569 13.335 27.470 21.182 21.182 22.453 23.800 25.228
Allocations to other priorities
Total Expenditure 1 831.051 865.709 1.161.240 1.565.948 1.568.377 1.568.377 1.246.494 1.306.200 1.368.412 Ref
Current Year 2013/14 2014/15 Medium Term Revenue &
Expenditure Framework
GT484 Merafong City - Supporting Table SA6 Reconciliation of IDP strategic objectives and budget (capital expenditure)
Strategic Objective Goal Goal Code 2010/11 2011/12 2012/13
R thousand Audited
Outcome Audited Outcome
Audited Outcome
Original Budget
Adjusted Budget
Full Year Forecast
Budget Year 2014/15
Budget Year +1 2015/16
Budget Year +2 2016/17 Basic Service Delivery A 106.037 106.768 189.528 336.548 259.489 259.489 288.724 151.061 108.073 Municipal Institutional Development and
Transformation
B
Local Economic Development C 5.213 310 – – 12.543 12.543 – – – Municipal Financial Viability and
Management D 2.644 1.214 1.272 5.955 1.775 1.775 5.955 5.000 9.450 Good Governance and Public
Participation
E Integrated Spatial Development
Framework
F 602 106 3.993 12.450 19.201 19.201 – – G
Allocations to other priorities 3
Total Capital Expenditure 1 114.496 108.399 194.792 354.953 293.007 293.007 294.679 156.061 117.523 Ref
Current Year 2013/14 2014/15 Medium Term Revenue &
Expenditure Framework