The goal of strengthening the link between the government’s priorities and spending plans is to enhance service delivery that aims to improve the quality of life for all.
Enhanced political oversight of the budget process is therefore the key to strengthening the link between competing priorities, spending plans and fiscal realities. Section 53 of the MFMA requires the Executive Mayor of the Municipality to provide general political guidance in the budget process and to set priorities guiding budget preparation. In addition, Chapter 2 of the Municipal Budget and Reporting Regulations states that the Executive Mayor must establish a budget steering committee to provide the Executive Mayor with technical assistance in discharging the responsibilities set out in section 53 of the Act.
The primary aims of the BSC are to ensure that –
• the proposals made by departments or regions and municipal entities will assist to achieve the set commitments as contained in the 2011/16 approved IDP;
• the City takes note in their planning of shifts in the development trajectory of the City as articulated in the Tshwane Vision 2055 outcomes;
• the proposed spending in line with the business plans will achieve the City’s priorities; and
• the available resources are allocated in line with the City’s priorities.
In preparation for the 2015/16 MTREF departments were invited to present their proposed business plans and draft budget, including inter alia the following at the Committee:
• The key functions carried out by the department.
• Achievements since the approval of the 2011/16 IDP.
• Challenges faced in the 2014/15 financial year in relation to carrying out the mandate.
• Summary of the planned key outputs leading up to the end of the term.
The outcomes and recommendations of the BSC confirmed the operationalisation of the strategic priorities of the City against the proposed programmes, projects and draft financial allocations.
The Tshwane Vision 2055 and the IDP are the primary reference points for preparing the MTREF.
2.1.1 BUDGET PROCESS OVERVIEW
In terms of section 21 of the MFMA, the Executive Mayor is required to table in Council, ten months before the start of the new financial year (August), a time schedule that sets out the process to revise the IDP and prepare the budget.
The Executive Mayor tabled the required IDP and budget time schedule in Council on 28 August 2014.
Key dates that apply to the planning and budgeting process are the following:
Table 42: Summary of budget time schedule
MILESTONES ( 2015/16 MTREF) TIMEFRAMES
Mid-year Review by National Treasury 26 January 2015 Approval of the Adjustment Budget 26 February 2015
Budget Steering Committee Hearings 12 - 13 and 16 -17 February 2015
Mayoral Lekgotla 20 – 22 February 2015
Tabling of the draft 2015/16 MTREF 26 March 2015 Public consultation and outreach April 2015 Approval of Municipal Entities budgets by Board 30 April 2015 State of the Capital Address by Executive Mayor 14 May 2015
Delivery of the Budget Speech 22 May 2015
Approval of the Medium-term Budget, IDP and Tariffs 28 May 2015
2.1.2 INTEGRATED DEVELOPMENT PLAN AND SERVICE DELIVERY AND BUDGET IMPLEMENTATION PLAN
The City’s IDP is it’s principal strategic planning instrument. It directly guides and informs the City’s planning, budget, management and development actions. This framework is rolled out as objectives, key performance indicators and targets for implementation which directly inform the Service Delivery and Budget Implementation Plan. This IDP is the fourth revision of the 2011-2016 IDP adopted by Council in May 2011. It contains six strategic objectives which address the City’s strategy to achieve its mandate.
While the IDP presents the strategic intent of the City, there is also an understanding of challenges in order to achieve the strategic objectives. The ultimate objective remains the approved implementation of the Municipality’s five-year strategy and ensuring improved responsiveness to community needs over time. The process was influenced by various factors, including legislative requirements, stakeholder participation, policy imperatives and financial factors.
The Census 2011 data provided insight on some of the development challenges facing the City. They need to be overcome, while some other challenges are yet unknown and may arise owing to national and international economic and social events. In the interim, the City has, developed a draft long- term strategy to achieve its outcomes and long-term vision, ie the Tshwane Vision 2055 and Growth and Development Strategy. These outcomes are the guiding principles that will frame the approach to planning in response to changing circumstances.
The IDP has been taken into a business and financial planning process leading up to the 2015/16 MTREF, based on the approved 2014/15 MTREF, mid-year review and adjustment budget. The business
2.1.3 FINANCIAL MODELLING AND KEY PLANNING DRIVERS
The Long-term Financial Model (LTFM) essentially informs the compilation of the MTREF with the emphasis on affordability and long-term sustainability. Although the LTFM is predominantly a financial planning tool to ensure long-term financial sustainability for the organisation, the financial planning process and LTFM run in parallel to ensure that the strategies and direction of the Municipality are at all times informed by best practice. One of the salient features of the LTFM is the attentiveness to ultimate sustainability, not only from a municipal finance perspective, but also in relation to service delivery in line with the GDS imperatives or priorities that drive the five-year Integrated Development Plan.
As with any organisation, municipalities can experience sustainability challenges if they do not have robust financial planning, management and governance in place that require consistent annual budgets and detailed quarterly financial position reviews.
Long-term financial planning is currently moving towards planning for achieving the Tshwane Vision 2055. The strategy further entail targeting a 100% spending of the capital budget, growth and a positive economic environment for investors.
Furthermore, the financial implications of the following programmes, which are part of the Tshwane Vision 2055, will form part of the future planning processes:
• Green economy.
• Enhancing residential precincts.
• Tshwane International Convention Centre.
• Symbio City.
• Pedestrianisation.
• Upgrading the inner city– beautification of Paul Kruger Street.
• Densification and mixed-use development.
• West Capital Development.
• Upgrading the inner city– Lilian Ngoyi Square.
2.1.4 COMMUNITY CONSULTATION
The tabling of the draft budget in Council was followed by the publication of the budget documentation and consultative meetings were scheduled in a regional manner and were widely advertised in the media, including newspapers, notices at libraries, the City of Tshwane website, etc.
In order to ensure effective participation and consultation:
• The draft IDP and budget were placed on the council website for perusal and comments.
• All libraries and customer care centres had copies available.