presentation to the select committee on finance and appropriations
DESCRIPTION
CITY OF MANGAUNG. PRESENTATION TO THE SELECT COMMITTEE ON FINANCE AND APPROPRIATIONS. Sandile Msibi CITY MANAGER 8 September 2011. Outline of the Presentation. Purpose of the Presentation Municipal Overview Alignment of IDP and PGDS Performance of Grants Budget Performance - PowerPoint PPT PresentationTRANSCRIPT
Click to edit Master subtitle style
PRESENTATION TO THE SELECT COMMITTEE ON FINANCE AND APPROPRIATIONS
CITY OF MANGAUNG
Sandile Msibi
CITY MANAGER
8 September 2011
Outline of the Presentation
Purpose of the Presentation
Municipal Overview
Alignment of IDP and PGDS
Performance of Grants
Budget Performance
Compliance with the MFMA
Service Delivery and Capacity Constraints
Intergovernmental Relations
Purpose of the Presentation To engage with the Committee on the following issues:
Development and Implementation of Mangaung Budget
Compliance with MFMA
Spending and Performance with Regards to Conditional
Grants
The Relations Between the MMM and Various National and
Provincial Departments.
Service Delivery and Capacity Constraints.
Alignment of MMM’s IDP with the Provincial Growth and
Development Strategy(PGDS)
Purpose of the Presentation To engage with the Committee on the following issues:
Development and Implementation of Mangaung Budget
Compliance with MFMA
Spending and Performance with Regards to Conditional
Grants
The Relations Between the MMM and Various National and
Provincial Departments.
Service Delivery and Capacity Constraints.
Alignment of MMM’s IDP with the Provincial Growth and
Development Strategy(PGDS)
• Covers three towns, with rural surroundings– Bloemfontein– Botshabelo (55km east of Bloemfontein), and – Thaba Nchu (12km east of Botshabelo)
• Dec 2000, led to formation of Mangaung Local Municipality, Category B
• May 2011, elevated from category “B” municipality to a category “A” metropolitan municipality
• Mangaung covers 6 863 km²
55
OVERVIEW OF MANGAUNG METRO
• Provincial Capital of Free State• Gateway to Central Region• Judicial Capital of South Africa• Bloemfontein is the sixth largest city in South Africa
66
OVERVIEW OF MANGAUNG METRO
OVERVIEW OF MANGAUNG METRO
CITY OF BLOEMFONTEIN
BOTSHABELO
THABA NCHU
Mangaung
6 604 square kms
• More than 50% of the people earning less than R1000 per month.
– Botshabelo, Thaba-Nchu and Mangaung township residents are the worst affected.
• Mangaung economy driven by service industry
88
60%
70%
40%
0%
10%
20%
30%
40%
50%
60%
70%
80%
2001 2007
Employed
Unemployed
0.1%3.5% 1.3%1.9%
16.0%
11.8%
26.8%
35.3%
2.2%Mining
Manufacturing
Electricity
Construction
Trade
Transport
Finance
Community Services
Agriculture
UNEMPLOYMENT LEVEL
• MMM consists of 97 Councilors:– 49 ward councilors;– 48 councilors representing political parties
appointed on a proportional basis
• 1 Executive Mayor (full-time)– Councilor Thabo Manyoni
• 1 Deputy Executive Mayor (full-time)– Councilor Mxolisi Siyonzana
99
COUNCIL STRUCTURE
• 1 Speaker (full-time) – Councilor Connie Rampai
• 10 Members of the Mayoral Committee (full-time)
1010
COUNCIL STRUCTURE
There are 10 Portfolio Committees each chaired by a Mayoral Committee member:
• Infrastructure & Services• Rural Development & Environment• Finance• Planning• Transport, Security & Emergency
1111
COUNCIL STRUCTURE
• Economic Development & Tourism• Human Settlement• Corporate Governance• Health & Social Development• Community participation and IDP
1212
COUNCIL STRUCTURE
Alignment of IDP and PGDS Planning and budgeting in the Municipality takes place
within the framework of a number of strategies
These include the IDP which plays a critical role in
informing the Municipality’s medium-term planning and
the PGDS informing the municipality and the province’s
long range planning
The Municipality’s Spatial Development Framework is also
crucial in providing a spatial context within which IDP
programmes and projects are contextualized
Alignment of IDP and PGDS (2) While the PGDS charts the long-term strategic course and
makes overarching decisions about what emphasize if the Municipality is to accelerate growth and development, the IDP defines where we want to be after five years, and how we intend to get there
The PGDS is consciously aligned to the Municipality’s IDP
(medium-term plan)
This practice will remain ensuring that the PGDS is
translated effectively into medium-term pragmatic
operational planning and budgeting
Grants Performance Name of Grant Rollover Allocation
2010/11SpendingJune 2011
Balance
R’000 R’000 R’000 R’000
National Government
Financial Management Grant 62 1 189 1 238 13
Municipal Systems Improvement Grant 685 750 1 435 -
National Electrification Programme Grant - 13 000 11 041 1 959
MIG Grant Capacity Building 641 - 399 242
DWAF Grant – Selosesha Sewerage 3 - 3 -
DWAF Grant 2 023 - 2 023 -
PTIS Grant 121 121 151 000 172 005 100 115
MIG Grant 38 063 169 729 145 103 62 689
Restructuring Grant 124 - 124 -
2010 WC Cup Host City Operating Grant 19 000 - 19 000 -
Demand Side Management Grant 1 041 5 000 4 462 1 579
GOGTA Grant Fire Suppression 83 - - 83
Total National Grants 182 846 340 668 356 383 166 680
Grants Performance (2) Name of Grant Rollover
Allocation 2010/11
Spending June 2011 Balance
R’000 R’000 R’000 R’000
Provincial Grants
Housing Accreditation Subsidy 3 422 - - 3 422
Prov. Administration Grant 16 623 - 8 780 7 843
Prov. Grant Planning & Survey 574 - 81 493
Local Government & Housing Infrastructure Grant 3 965 - - 3 965
White City Hostels Grant 1 215 - 1 173 42
Urban Renewal Grant 569 - 288 281
Prov. Grant Land Use Scheme 749 - 749 -
Prov. Grant Transfer Grassland 4 500 - - 4 500
Prov. Grant Batho Project - Housing 2 083 - 334 1 749
Prov. Grant Batho – Roads - 32 335 5 911 26 423
Prov. Grant CCTV BFN CBD, Stadium & Naval Hill 131 - - 131
Prov. Grant Du Plessis & Muller Intersections 579 - 24 555
Prov. Grant Township Establishment Caleb Motshabi 1 344 - 1 197 147
Urban Settlement Development Grant 916 5 589 - 6 505
Total Provincial Grants 36 670 37 924 18 537 56 056
Grants Performance (3)
Name of Grant RolloverAllocation 2010/11
Spending June 2011
Balance
R’000 R’000 R’000 R’000
Others
Motheo District Municipality Grant Environmental Health
13 787 6 000 9 106 10 680
Motheo District Municipality Grant Tourism
- 100 89 11
DBSA Capacity Building Grant 234 - - 234
Motheo Grant – upgrading Roads - 1 259 - 1 259
Total Others 14 021 7 359 9 195 12 184
Total Conditional Grants 233 535 385 951 384 565 234 921
Reasons for Variance
Infrastructure
MIG Capacity Building - R242 468,48
MIG Grant - R62 689 011,12
Prov. Grant: Operation Hlasela - R26 423 366,74
Prov. Grant: Du Plessis & Muller Intersection - R554 639,58
Prov. Administration Grant - R7 845 754,58
Motheo Grant: Upgrading Roads - R1 259 252,19
Reasons for Variance (2)
Economic Development & Planning
PTIS - R100 115 219,01
Prov. Grant: Planning & Survey - R493 143,56
Urban Renewal Grant - R280 553,14
Prov. Grant: Township establishment Caleb Motshabi -
R147 238,87
Prov. Grant Transfer: Grasslands - R4 500 000,00
Reasons for Variance (3)
Housing
Housing Accreditation Subsidy - R3 422 275,42
White City Hostels - R 42 208,12
Prov. Grant: Batho Project – Housing - R1 749 275,48
Urban Settlement Development Grant - R6 505 054,35
Reasons for Variance (4)
Community & Social Development
Provincial Grant: CCTV BFN CBD, Stadium & Naval Hill -
R130 850,75
Motheo District Municipality Grant Environmental Health
- R10 680 300,94
COGTA Fire Suppression - R82 816,58
Centlec
National Electrification Programme - R1 959 038,99
Demand Site Management - R1 578 868,90
Achievements
Financial Management Grant
Support of five (5) Finance Interns
Caseware support for Accounting and Compliance Division
Budget and Treasury Office Support:
Credit Rating
Budget Reforms
Achievements (2)
Municipal Systems Improvement Grant
Asset Management Division ( R685 144,86)
Training for the ASM personnel
Created twenty (20) temporary jobs for unemployed
matriculates for a period of 6 months as asset counters
Facilitated out movable asset project count
Achievements (3)
Supply Chain Management (R750 000)
These funds were used for the implementation of the
e-filing system
The system was commissioned to address the problem
of lost documents during Auditor General audits
In terms of the system all documentation is scanned
and stored electronically
Original documents are stored outside the municipality
Budget Performance Revenue per Source (actual versus budgeted revenue)
Operating Expenditure per Type (actual versus budgeted
expenditure)
Growth in Budget and Factors contributing to growth
Capital Budget by funding Source
Grant Dependency - Capital
Grant Dependency - Operating
Revenue Collection - Rates and Debtors
Salaries Percentage
Repairs and Maintenance
Revenue Per SourceRevenue Per Source Budget
2010/11Adj Budget
2010/11Total for the
YearYTD
Variance% of Budget
R’000 R’000 R’000 R’000 %
Assessment rates 394 830 394 830 405 477 10 647 102.70%
Electricity Tariffs 1 167 997 1 285 090 1 189 385 -95 705 92.55%
Water Tariffs 338 520 338 520 371 967 33 447 109.88%
Sanitation Tariffs/ Refuse Removal 150 667 150 677 144 124 -6 552 95.65%
Rent of Facilities and Equipment 18 227 18 227 14 909 -3 319 81.79%
Interest earned-Internal Investments 52 046 52 046 28 185 -23 861 54.15%
Interest Earned-Outstanding Debtors 27 642 27 642 22 269 -5 374 80.56%
Interest on Shareholder Loan 99 485 99 485 99 485 - 100.00%
Fine s 5 385 5 385 1 640 -3 745 30.45%
Licenses and Permits 753 753 203 -549 27.00%
Income for Agency Service 17 121 17 121 17 793 673 103.93%
Seconded Personnel Salaries & Allowances
117 427 117 427 104 673 -12 754 89.14%
Capital Grants & Subsidies 211 520 502 242 368 090 -134 153 73.29%
Operating Grants & Subsidies received 558 409 545 137 551 024 5 887 101.08%
Other Revenue 159 066 200 012 67 811 -132 201 33.90%
Total Revenue Per Source 3 319 105 3 754 594 3 387 035 -367 559 -9.79%
Operating Expenditure per TypeRevenue Per Source
Budget 2010/11
Adj Budget 2010/11
Total for the Year
YTD Variance
% of Budget
R’000 R’000 R’000 R’000 %
Employee Related Costs 774 955 797 019 729 205 -67 813 91.49%
Remuneration of Councillors 25 271 25 271 22 962 -2 309 90.86%
Seconded Personnel Salaries 116 539 116 539 104 673 -11 866 89.82%
Bad Debt Provision 87 557 91 557 173 065 81 508 189.02%
Depreciation 183 119 178 104 101 622 -76 482 57.06%
Repairs and Maintenance 159 971 166 555 132 214 -34 341 79.38%
Interest Paid 50 967 50 967 4 085 -46 882 8.01%
Interest on Shareholder Loan 99 485 99 485 116 889 17 404 117.49%
Bulk Purchases –Water 215 232 215 232 250 334 35 103 116.31%
Bulk Purchases –Electricity 771 691 771 691 661 702 -107 989 85.97%
Contracted Service 153 469 178 936 138 841 -40 095 77.59%
Grants and Subsidies Paid 2 033 2 033 1 750 -283 86.08%
Contributions to (from) Provisions 7 324 7 324 8 219 896 112.23%
General Expenditure –Other 341 711 382 234 337 217 -45 017 88.22%
Total Operating Expenditure per Type
2 988 324 3 080 947 2 782 779 -298 166 90.32%
Growth in Budget
Operating Expenditure 2010/11 – 2011/12
2010/11 2011/12 Increase%
Increase
Bulk Purchases 986 922 1 2600 365 273 443 27.71
Personnel Costs 798 197 886 816 88 619 14.43
Remuneration of Councillors 25 270 43 689 18 419 72.89
Contracted Services 153 469 162 868 9 399 6.12
Repairs and Maintenance 158 971 216 940 57 969 36.46
Other 907 151 1 080 899 173 748 19.15
Total 3 080 947 3 691 530 610 583 23.53
Growth in Budget
Notes on the increase of the operating expenditure:
Personnel costs increase is based on an 8% salary increase
and include salaries of ninety (90) staff members from the
former Motheo District Municipality
Clr remuneration includes an increase in the number of clrs
Repairs and maintenance has increased by a massive 36%
in order to address the ageing roads and infrastructure
R5m has been provided to cover outstanding commitments
of the former Motheo e.g auditing costs and building lease
Growth in Budget
Revenue 2010/11 – 2011/12
2010/11 2011/12 Increase%
Increase
Assessment Rates 394,83 445,41 50,58 12.81%
Service Changes 1 657,19 2 023,41 366,26 22.10%
Fuel Levy - 175,98 175,98 -
Grants and Subsidies
1 100,07 1 270,24 170,17 15.46%
Other 601,91 522,96 -79,95 -13.28
Total 3 754 4 438 683,04 33.72%
Growth in Budget
The revenue is based on the following:
Tariff increases: water 10%, Electricity 26%, Rates 12%
and General tariffs 10%
Fuel levy of R175m. First time inclusion as a result of our
status as a metro
Grants and subsidies of more than R1 billion
Rates Levy constitutes 65% of total revenue
Capital Budget by Funding Source
Budget 2010/11
Adj Budget2010/11
Actual Spend
June 2011Balance
% ofAdj
Budget
R’000 R’000 R’000 R’000 %
External Loans 69 970 69 970 22 259 47 711 31.81%
Capital Replacements 71 799 196 776 82 518 114 258 41.94%
Public Contributions and Donations 19 968 20 884 13 195 7 688 63.19%
National Government 207 745 472 938 331 282 141 656 70.05%
Provincial Government - 33 193 16 303 16 890 49.12%
Motheo District Municipality 3 775 3 950 298 3 652 7.53%
TOTAL 373 257 797 711 465 855 331 855 58.40%
Grant Dependancy - Revenue
Budget 2010/11
ADJ Budget2010/11 Actual
Budget 2011/12
R’000 R’000 R’000 R’000
Capital Grant 211 520 502 242 368 089 571 745
Operating Grant 558 409 545 137 551 024 560 857
Other Revenue 2 549 176 2 707 216 2 467 922 3 305 848
Total Revenue 3 319 105 3 754 595 3 387 035 4 438 450
Budget 2010/11
ADJ Budget2010/11 Actual
Budget 2011/12
Grants 23.20% 27.90% 27.14% 25.52%
Own Revenue 76.80% 72.10% 72.86% 74.48%
Total Revenue 100.00% 100.00% 100.00% 100.00%
Grant Dependency - Capital Budget
2010/11Adj Budget
2010/11Actual
Budget 2011/12
R’000 R’000 R’000 R’000
External Loans 69 970 69 970 22 259 110 546
Government Grants 207 745 506 131 347 585 570 362
District Municipality 3 775 3 950 298 1 383
Own Funds 91 776 217 660 95 714 141 856
Total Capital 373 256 797 711 465 856 824 147
Budget 2010/11
Adj Budget2010/11
ActualBudget
2011/12
External Loans 18.74% 8.77% 4.78% 13.41%
Government Grants 55.66% 63.45% 74.61% 69.21%
District Municipality 1.01% 0.50% 0.06% 0.17%
Own Funds 24.59% 27.29% 20.55% 17.21%
Total Capital 100.00% 100.00% 100.00% 100.00%
Revenue Collection - Rates and Debtors
PER SERVICE CURRENT 30 DAYS 60 DAYS 90 DAYS 120 + DAYS TotalELECTRICITY 97,913,470.61 27,222,823.65 14,485,075.76 10,507,353.88 108,478,581.37 258,607,305.27 SUNDRY LOANS 3,379.25 4,484.11 4,757.31 4,757.31 982,743.23 1,000,121.21 RATES 28,012,842.46 11,879,100.50 9,257,018.75 10,062,232.08 241,431,632.37 300,642,826.16 SANITATION 11,331,516.25 5,351,347.98 4,305,909.64 4,426,174.83 126,357,456.32 151,772,405.02 SUNDRIES 1,941,053.73 1,104,018.00 344,673.60 496,724.80 34,250,777.88 38,137,248.01 WATER 44,293,914.77 25,797,888.91 22,387,856.29 17,164,115.46 362,569,170.01 472,212,945.44
183,496,177.07 71,359,663.15 50,785,291.35 42,661,358.36 874,070,361.18 1,222,372,851.11 15% 6% 4% 3% 72%
Revenue Collection - Rates and Debtors
PER CLASSIFICATION CURRENT 30 DAYS 60 DAYS 90 DAYS 120 + DAYS Total
BUSINESS 81,295,413.74 22,360,891.09 13,954,159.77 10,086,677.89 124,070,690.58 251,767,833.07
GOVERNMENT 10,474,722.04 5,979,202.23 3,417,698.58 4,419,104.46 47,877,473.43 72,168,200.74
DOMESTIC 90,051,445.50 42,076,566.40 33,082,185.86 27,667,458.51 668,925,839.06 861,803,495.33
OTHER 1,674,595.42 943,003.43 331,247.12 488,117.45 33,196,358.55 36,633,321.97 183,496,176.70 71,359,663.15 50,785,291.33 42,661,358.31 874,070,361.62 1,222,372,851.11
15% 6% 4% 3% 72%
Government DebtMonth Electricity Water Sanitation Rates Other TOTAL
10-Jul 22,497,698 11,829,874 45,485,078 17,472,665 - 97,285,315
10-Aug 25,748,929 12,126,363 34,958,000 19,522,580 - 92,355,872
10-Sep 25,078,783 21,610,803 35,515,288 24,812,018 - 107,016,892
10-Oct 28,683,418 22,002,018 36,469,835 27,381,460 - 114,536,731
10-Nov 25,341,949 10,994,319 37,676,752 20,786,940 2,138,791 96,938,751
10-Dec 24,130,211 10,994,319 38,094,785 22,149,973 2,134,297 97,503,585
11-Jan 24,767,171 11,395,048 37,443,755 21,275,868 2,139,804 97,021,645
11-Feb 23,969,376 11,351,164 38,007,082 22,203,585 2,201,553 97,732,760
11-Mar 19,616,414 10,018,937 26,733,707 24,350,715 2,223,083 82,942,855
11-Apr 21,098,638 7,966,775 23,439,010 21,191,584 2,081,637 75,777,643
11-May 22,905,174 8,081,031 23,439,447 21,857,660 2,049,289 78,332,601
11-Jun 19,465,012 6,085,023 22,062,246 22,509,087 2,046,833 72,168,201
Revenue Collection - Rates and DebtorsMeasures employed to reduce debt
Government debt• On-going reconciliation are being effected monthly for payments
made to the municipality and how they were allocated on the system.
• Currently, when the Department of Public Works effects a lump sum payment to the municipality they also send through an allocation in order to ensure that the amounts are allocated accordingly to the correct accounts. There is a continuous reconciliation of records conducted frequently.
• Also, there has been an engagement between the Department of Education and the municipality to address the debt owing by schools.
Revenue Collection - Rates and Debtors
Other Debt
• Audits of households and businesses are being performed to verify
existance of meters and readings.
• Indigents are identified and registered as they become identified
during the audits.
• Disconnections of electricity supplies are actively implemented.
• We are introducing the installation of pre-paid water meters. These
have already been installed in municipality owned properties.
Salaries Percentage
Budget 2010/11
Adj Budget
2010/11Actual
Budget 2011/12
R’000 R’000 R’000 R’000Employee Salaries 774 955 797 019 729 205 886 816
Operating Expenditure
2 988 324 3 080 947 2 782 779 3 691 530
Salaries % Budget 25.93% 25.87% 26.20% 24.02%
Repairs and MaintenanceRepairs and Maintenance
Budget / Open Balance YTD Movement Balance
% ofBudget
R’000 R’000 R’000 %
Municipal Facilities 29 080 20 544 8 536 71.64%
Landfill Sites & Quarries
Landfill Site - Rehabilitation 3 494 8 313 -4 818 237.90%
Quarry Rehabilitation 657 534 122 81.34%
Total 4 151 8 847 -4 696 213.14%
Roads & Stormwater
Roads 13 455 13 567 -113 100.84%
Roads – Rehabilitation Program 2 586 2 499 90 96.52%
Roads – Sundry Rehabilitation 2 353 2 194 159 93.22%
Water Mains 8 158 6 900 1 258 84.58%
Sewer Mains 4 269 2 573 1 696 60.26%
Total 30 821 27 733 3 090 89.98%
Repairs and Maintenance (2)
Repairs and Maintenance (Cont)Budget / Open
BalanceYTD
Movement Balance% of
Budget
R’000 R’000 R’000 %
Infrastructure - Other
Street Lighting 27 927 27 115 812 97.89
Maintenance and Overlay Work 1 231 922 309 74.90
Material 18 587 13 604 4 982 73.19
Traffic Lights 819 819 - 100
Substations – Upgrading & Maintenance 626 586 40 93.61
Metering & Material 3 671 2 293 1 379 62.46
52 861 45 339 7 522 85.77%
Fleet Maintenance
Tyres & Tubes 5 577 3 773 1 804 67.65%
Vehicles 42 396 25 979 16 417 61.27%
47 973 29 752 18 221 62.02%
Total Repairs and Maintenance 164 886 132 215 32 673 80.18%
Compliance with MFMA Supply Chain - All bid committees are in place and
functioning properly
Each directorate have a specification and evaluation
committee. The bid adjudication committee is centralized
and is comprised of Executive directors as members and is
chaired by the CFO
SCM policy is in place and was approved in 2005 and
amended in 2010. The policy complies with the
regulations in terms of sec 68 of the MFMA
Compliance with MFMA (2) Reporting
Sec 71 reports have been submitted regularly to
National Treasury
Quarterly sec 52 reports and SCM quarterly reports
have been submitted to Council meetings
Budget was approved before the beginning of new
financial year and Annual Financial Statements have
been submitted on time for the past five years
Compliance with MFMA (3) All executive positions have been filled. Finance directorate
consists of the following sub-directorates; Financial Management, Supply Chain Management, Revenue Management, Asset Management and Compliance Division.
Audit committee is in place and functioning.
Challenges
MFMA compliance deadlines are not met.
Oversight committee not sitting.
Past three years receiving disclaimers opinion mainly as a
result of lack of compliant asset register. Service provider
has been appointed to compile the register.
Service Delivery and Capacity Constraints
Electricity
Water and Sanitation
Refuse Removal
Roads
Indigents
Targeted Backlog vs Actual Achieved per Area
ELECTRICITY Electricity is supplied by Centlec, a wholly owned entity of the
Mangaung Metropolitan Municipality.
Challenges faced by the entity are:
Maintenance backlogs and the rising refurbishment costs
Annual growing Eskom account. The entity will not be
sustainable in the long term. For example
2006- Bulk purchases accounted for 55% of opex
2011- bulk purchase account for 70% of opex
2016-Bulk purchases will account for more than 95%
Entity loosing money as a result of high number of
Illegal bridging and poor management
Water and Sanitation
Water and sanitation bulk services need to be extended beside the connection backlogs as follows:
• There are 14
reservoirs in the
Botshabelo area of
which 4 are
owned by Bloem
Water. Six of
MMM reservoirs
have a storage
shortfall of 15ML
• There are 5
reservoirs in the
Thaba Nchu area
of which 4 are
owned by Bloem
Water. The 4
Bloem Water
reservoirs has a
total shortfall of
23.2Ml but will be
augmented by an
internal MMM
reservoir –
currently with a
shortage of 24,5
ML
• MMM has 9
Waste Water
Treatrement
Works (and 1 at
the Air Force Base
owned and
operated by Public
Works) of which 5
are Activated
Sludge (AS) type, 3
are Bio Filter (BF)
type and one an
Oxidation Pond
(OP) type.
Bloemspruit and
Sterkwater are
overloaded to the
equivalent of 17
740 and 23 220
(17 480 + 5740)
stands
respectively
Refuse RemovalChallenges that are experienced with refuse removal:
Unreliability of older compaction vehicles and heating
problems with new compaction vehicles that results in an
average availability of less than 50% of the compaction
vehicle fleet
Long turn-around times for repair of solid waste
management fleet at Mechanical Workshop
Number of vacancies amongst solid waste staff (both
operational and supervisory staff)
Low % of vehicle availability and high level of vacant posts
leads to increased overtime which increases costs of
prescribed level of service delivery
Refuse Removal (2) Number of compaction vehicles and staff have not
increased equally in relation to increase in households that needs to be serviced placing additional pressure on already over-stretched resources
Volatile labour environment which is characterized by
wildcat strikes and go-slows
Ageing workforce that finds physical work more
demanding
Continued focus on waste collection due to lack of
resources leaves little room for focus on other legislative
issues such as separation at source and recycling
Roads
26 % (367 km) of our current paved roads are in a poor to very poor structural condition.
Aside from the 1 186 km of roads that are still unpaved
Huge capital investment required to address this,
together with the stormwater backlogs
9% (127 km) of surfaced roads in poor to very poor
condition due to potholes, surface cracks, etc.
.
Indigents We currently have 36 000 indigents on our indigents
register
We provide the following free basic services to indigents:
6kl of water
50kw of electricity
Free installation and conversions to prepaid electricity
Exemptions from rates and taxes
Burials, on application, R1250 for adults and R750 for children
Biggest challenge is for people coming forth to register.
Water Service Levels and Backlogs
WaterNo. of Erven (Bfn)
Botshabelo Thaba Nchu Total
Water Connection 85,980 47,245 20,569 153,794Connection (no. meter) 479 479No Services 89 2,761 2,850Water Network Only 89 89Communal Standpipes 2,996 3 881 3,880Not Developed 6,955 1,093 8,048Parks 451 119 47 617Total Water 96,471 50,696 22,590 169,757Water Connection Backlog 10,040 2,853 1,974 14,867Est installation unit cost (R) 5,000 5,000 5,000 5,000Estimated Upgrade Cost (R'000)
50,200 14,265 9,870 74,335
Other stands 4 4 877 885Total Erven 96,475 50,700 22,374 169,549
Sanitation Service Levels and Backlogs
Sanitation Bloemfontein
Botshabelo Thaba Nchu
Total
Waterborne 84,453 15,695 6,874 107,022VIPs 2,819 16,261 13,241 32,321Pit Latrines 2,913 14,772 503 18,188Buckets 344 1,131 4 1,479Not Developed 5,559 2,761 790 9,110Parks 383 76 85 544Total sanitation 96,471 50,696 21,497 168,664Waterborne Backlog 11,635 34,925 14,538 61,098Est installation unit cost (R) 20,000 20,000 20,000 20,000
Est Upgrade Cost (R'000) 232,700 698,500 290,760 1,221,960Other stands 4 4 877 885Total Erven 96,467 50,692 20,620 167,779
Roads and Stormwater Backlogs
Existing Developments No House Units Length (m) Unit costTotal estimated
CostMangaung Road backlog 167,779 1 186 400 R 5,500 R 6,525,200,000Mangaung Stormwater Backlog
830 480 R 2,500 R 2,076,200,000
Informal settlements No House Units17 232
Length (m)170 000
Unit cost Total estimated Cost
Bloemfontein 31 627 Roads 790 675 R 5,500 R 4,348,712,500Stormwater 553 472.5 R 2,500 R 1,383,681,250Botshabelo 6 928 Roads 138 560 R 5,500 R 762,080,000Stormwater 110 848 R 2,500 R 277,120,000Thaba Nchu 3 284 Roads 65 680 R 5,500 R 361,240,000Stormwater 52 544 R 2,500 R 131,360,000Stormwater 218736 R 2,500 R 546,840,000
Roads and Stormwater Backlogs
Future Developments No House Units Length (m) Unit costTotal estimated
Cost
7 Land Parcels 13 671 492 156 R5,500 R 2, 706, 858, 000
Roads 273 420 R 5,500 R 1,503,810,000
Stormwater 218 736 R 2,500 R 546,840,000
Summary Costs of Bulk Infrastructure Backlogs
Water Services Short-term Cost Long-term costReservoirs R 271,020,515 R 94,522,457Piping R 165,069,450 R 91,066,200Booster Pump Stations R 0 R 710,000
TOTAL R 436,089,965 R 186,298,657Sanitation ServicesWWTW's R 596,250,000 R 607,500,000Gravity lines R 217,029,374 R 29,510,341Pump Stations R 9,508,512 R 0Rising Mains R 8,926,222 R 0
TOTAL R 831,714,108 R 637,010,341Roads
TOTAL R 438,620,000 R 866,408,200StormwaterStatus quo upgrades R 355,000,000New Developments R 280,974,500 R 49,100,000
TOTAL R 635,974,500 R 49,100,000
TOTALS R 2,342,398,573 R 1,738,817,198
Summary of costs
Intergovernmental Relations
Centlec
Centlec was created as separate municipal entity –
company
This entity is wholly owned by the Municipality and
primarily provides electricity services originally provided
by the Municipaliyu
Intergovernmental Relations (2)
The municipal entity model defines the relationship between the Centlec and the Municipality as follows:
Centlec is wholly owned by the Municipality as per the
Companies Act
The Municipality maintains policy and implementation
direction while allowing Centlec directors and management
to exercise relative autonomy in the execution of their
fiduciary duties, as prescribed by the Companies Act; and
Oversight of Office of the City Manager ensures closer
alignment within the portfolio concerned.
Intergovernmental Relations (3)
Eskom
• The Mangaung Metropolitan is the major client of Eskom
in the Free State
• As such, the Municipality is in arrears of R143 million
• R70 m was paid to Eskom this month. Municipality has
committed to pay current account monthly and the
balance on the account will then be settled in three equal
installments
Intergovernmental Relations (4)
Eskom
• The Municipality has requested Eskom for assistance to
review its tariff structure for the next budget cycle.
• Technical assistance
Intergovernmental Relations (5)
Bloemwater
Bloemwater is the service provider of the Municipality
meeting almost 80% of municipal water needs
The municipal water service account for Bloemwater is
current
Dispute between Bloemwater and MMM has since been
arbitrated and resolved by National Treasury
Intergovernmental Relations (7)
DBSA
• The Municipality has credit facility of R200 000 000 to finance
the infrastructural projects of the municipality – water related
• Draw-down on the loan facility up to the end June 2011 is R28
m
• The delay in implementation is caused by the EIA studies not
finalized yet.
• The Municipality has agreed with provincial government to
fast-track the process by engaging national government.
Intergovernmental Relations (8)
Municipalities
The Mangaung Metropolitan has also established a
number of formal and informal relationships with other
municipalities locally and internationally on:
Information sharing, best practice and capacity building
Co-operating on municipal development challenge; and
Any other issues of strategic importance which affects the
interests of the participating municipalities or cities
Intergovernmental Relations (9)Participation of Sector Departments in IDP Processes
The Municipality is committed in making public
participation an integral part of its planning, budgeting
and service delivery processes through ongoing public
participation initiatives
The Mangaung Metropolitan is committed to ensuring
community participation in the interests of participative
democracy at a local government level
Intergovernmental Relations (10)Participation of Sector Departments in IDP Processes
The commitment to community participation is
underpinned by adherence to the MSA and the MFMA,
which require municipalities to consult with local
communities through appropriate mechanisms, processes
and procedures
These include the community based planning approach;
mayoral roadshows, regional and stakeholder summits;
sectoral engagements; as well as participation in the
annual cycle of the IDP and Budget
Intergovernmental Relations (11)
On the 23rd June 2011, Mangaung held IDP and budget Conference whereby different stakeholders (i.e. government departments, Youth Organisations, Organised Labour, Woman Organisations and Ward Committees) were invited to make inputs to the IDP and Budget documents before they are submitted to Council
Intergovernmental Relations (12)
Regional and Stakeholder Summits
Regional summits were held from 20 Apr 2011 to 04 May
2011 in all three regions.
These sessions ensure community participation in terms
of:
Mangaung Metropolitan processes;
Project progress in all wards; and
Municipal plans and development.
The culmination of this process was the hosting of the
budget conference summit on the 23rd June 2011.
Intergovernmental Relations (13)Sectoral Engagements
The Municipality recognizes that co-operative governance
should contribute towards seamless service delivery from
all spheres of government.
The process through which the Municipality enhances
harmonization and alignment plans with other spheres of
government included:
Participation in the Free State forums for
intergovernmental planning and budgeting
Intergovernmental Relations (14)
Sectoral Engagements
Municipal directorates regularly engage with
their counterparts at provincial and national
level as part of the efforts to enhance
alignment in order to ensure that the outcome-
based plans of PGDS are integrated and aligned
with the Municipality’s plans; and
Extensive engagement around the
development of the Municipality’s IDP
including discussions, IDP workshops and
meetings between the Municipality and
provincial government.
THANK YOU