Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

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1 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

2 Glossary AG ASDF Asgi-SA BMR CBD CDS CIP CIPF CM CNCI CSIR DEAT DM DME DMP DPLG DTI DWAF FBAE FBDM FBE FBW FPP GDS GURP HDI IBP IDP IEMP IGR ITP IWMP KPA LED LM LUMS MFMA MIIF MIS MOU MSA MSFM NEMA NER NPDG NSDP NSDP PGDS SAPIA SARB SARS SDBIP SDF SECCU SLP SOE SPM StatsSA UDZ VIP toilet WSDP Auditor General Alternative Service Delivery Framework Accelerated and Shared Growth Initiative of South Africa Bureau for Market Research at UNISA Central Business District City Development Strategy Comprehensive Infrastructure Plan Comprehensive Infrastructure Planning Framework Chamber of Mines of South Africa Cement and Concrete Institute Council for Scientific and Industrial Research Department of Environment Affairs and Tourism District Municipality Department of Minerals and Energy Disaster Management Plan National Department of Provincial and Local Government Department of Trade & Industry Department of Water Affairs and Forestry Free basic alternative energy Frances Baard District Municipality Free basic electricity Free basic water Fraud Prevention Plan Growth and Development Summit Galeshewe Urban Renewal programme Human Development Index Index of Buying Power Integrated Development Plan Integrated Environmental Management Plan Intergovernmental Relations Integrated Transport Plan Integrated Waste Management Plan Key Performance Area Local Economic Development Local Municipality Land Use Management System Municipal Finance Management Act Municipal Infrastructure Investment Framework Multi-year Institutional Scorecard Memorandum of Understanding Municipal Systems Act Municipal Services Financial Model National Environmental Management Act National Electricity Regulator Neighbourhood Partnership Development Grant National Spatial Development Perspective National Spatial Development Perspective Provincial Growth and Development Strategy South African Petroleum Industry Association South African Reserve Bank South African Revenue Services Service Delivery and Budget Implementation Plan Spatial Development Framework Sustainable Energy and Climate Change Unit Social and Labour Plans State owned enterprise Sol Plaatje Municipality Statistics South Africa Urban Development Zone Ventilated Improved Pit toilet Water Services Development Plan

3 TABLE OF CONTENT Background to the IDP Review IDP Review Process 2007/ Analysing for Improvements to the IDP Sources of Information 2.2 Strategic Scan and Forecast of Issues that may impact on the Remaining Three Years of the Current IDP 3. Updating the Municipality s Socio-economic Profile Demographics 3.2 Development 3.3 Economic 3.4 Conclusion 4. Reviewing the Key Performance Areas (KPAs) and Strategic Objectives Mid-year Performance 2007/2008 and Remaining gaps in the IDP Capital Programme 5.2 Operational Budget 5.3 Service Delivery Targets 5.4 Remaining Gaps in the IDP 6. The Multi-Year Municipal Performance Management Plan (Institutional Scorecard) 2008/2009 to 2011/ Stakeholder Comments Implementation through the Service Delivery and Budget Implementation Plan The 2008/2009 Implementation Plan 8.2 Capital Plan 8.3 Operational Budget 9. Important Documents Supporting the IDP TABLES/CHARTS Table 1 Revised Action Plan, 4 March Table 2 Actual Public Participation Process: April/May Chart 3 Total Population of SPM as Percentage of the Northern Cape Province...10 Table 4 SPM Total Population Numbers 1996 to Table 5 Number of Households per Population Group (1996, 2001, 2006)...11 Chart 6 Number of Households per Population Group Chart 7 Population by Population Group (2001)...12 Chart 8 Population Growth SPM vs NC Province...12 Chart and Table 9 Population Growth by Population Group SPM...13,14 Table and Chart 10 Highest level of Education per Population Group (2006) Age Chart 11 Gini Coefficient...15 Chart 12 Human Development Index...16 Chart 13 Percentage of People that are Literate...16 Table and Chart 14 Number and Percentage of persons in Poverty - SPM...17 Table 15 Poverty Gap (R millions) SPM...18 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009 1

4 Chart 16 Poverty Gap (R millions) SPM...18 Chart 17 Urbanisation Rate (2006)...19 Chart 18 Composition of GDP by Region for 2006 (R millions, Current Process)...19 Table 19 GDP (R millions, Current Prices)...20 Chart 20 Annual Growth in Primary Sectors (Constant 2000 prices)...21 Chart 21 Annual Growth in Secondary Sectors (Constant 2000 prices)...21 Chart 22 Annual Growth in Tertiary Sectors (Constant 2000 prices)...22 Chart 23 GVA by Region Broad Economic Sectors (Current Prices, R1,000) 1996, 2001, Table 24 GVA by Region Broad Economic Sectors (Current Prices, R1,000) Table 25 Location Quotient (2006)...24 Table 26 Tress Index...24 Table 27 Annual Disposable Income SPM (Constant 2000 prices, R millions)...25 Chart 28 Annual Disposable Income Growth per Year...25 Table 29 Number of Households by Income Category SPM...26 Table 30 Index of Buying Power (2006)...26 Table 31 Annual Personal Income SPM (Current Prices, R millions)...27 Chart 32 Annual personal Income Growth per Year...27 Table 33 Retail Sales SPM...28 Chart 34 Economically Active Population (1996)...28 Chart 35 Economically Active Population (2006)...29 Table 36 Number of Formally Employed people, 1996, 2001, Chart 37 Formal Employment Growth over time in the Primary Sector...30 Chart 38 Formal Employment Growth over time in the Secondary Sector...30 Chart 39 Formal Employment Growth over time in the Tertiary Sector...30 Table and Chart 40 Number of People Employed in the Informal Sector...31 Chart 41 Informal Employment Growth over time...32 Table 42 Total Employment SPM Chart 43 Unemployed People SPM Table and Chart 44 Number of Unemployment People in SPM per Population Group and Gender 1996, 2001 and Chart 45 Unemployment rate SPM ( )...34 Chart 46 Unemployment Rate SPM by Gender 1996 to Table 47 Remaining Content Gaps and Filled Gaps in the IDP...42 Table 48 Municipal Tariffs 2005/ / ANNEXURES Annexure 1 Process Plan adopted by Council on 28 August Annexure 2 Mid-year Budget and Service Delivery Performance Report, March Annexure 3 Multi-Year Institutional Scorecard, 2008/ / Annexure 4 Unfunded Capital Project Schedule...93 Annexure 5 Priorities Submitted by Various Wards in Sol Plaatje Municipality...97 Annexure 6 Capital Programme 2008/09 and Indicative Years 2009/2010 and 2010/ Annexure 7 Summary of Operational Budget 2008/09 and Indicative Years 2009/2010 and 2010/ Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

5 Background to the IDP Review Sol Plaatje Municipality adopted its five-year Integrated Development Plan 2007/2008 to 2011/2012 on 31 May This rolling five-year Integrated Development Plan (IDP) contains key municipal plans and priorities for the current political term of office. Central to the execution of the IDP is the need for economic growth and job creation and the need to maintain, upgrade and extend municipal infrastructure in order to facilitate much needed economic development. These considerations impact on all choices and decisions the SPM have to make. Marketing the City and attracting international and regional investment are also key elements in financing the execution of Sol Plaatje s IDP. The plan is further refined through a prioritisation process within available budget parameters and alternative service delivery mechanisms to reflect an affordable, implementable plan. The IDP also enhances the Municipality s contribution to the work initiated through the Intergovernmental process involving Provincial and National Government. In this IDP it is aimed to: a. Establish a long term vision encapsulating the priorities of the elected Council; b. Reflect community needs and priorities; c. Articulate how Sol Plaatje Municipality aims to address and align with the National objectives of shared growth, reduction of poverty and social inclusion; d. Determine the strategic priorities guiding the actions of the Municipality for the next five years through linking and co-ordination sectoral strategies; e. Align financial and human resources with implementation needs; f. Set out a strategically informed programme of action for the Medium-term Revenue and Expenditure Framework; g. Strengthen the focus on sustainable development; h. Provide the basis for annual and medium-term budgeting; i. Guide Council s development decision-making; j. Enable legislative compliance; and k. Provide a monitoring and evaluation framework for the IDP. This Review (2007/2008), adopted by Council on 28 May 2008 (Resolution C167/08), will reflect on the performance of the Municipality during the first half of the 2007/2008 financial year in terms of the implementation of this Plan especially in achieving its strategic objectives as defined in the five Key Performance Areas (KPAs) as captured in its Municipal Performance Plan (Institutional Scorecard). This strategic environmental scan will inform the review of the KPAs and associated strategic objectives and targets, linked to National and Provincial growth and development initiatives. This review is also informed by new information that became available since the adoption of the IDP in May 2007, as well as changes and influences both internal and external that impact on these strategic issues. The review also contributes to the adjustment of the Municipality s five-year Plan as well as informing the Budget and Annual Implementation Plan of the Municipality for 2008/2009. It is also imperative that this review should be read alongside the five-year IDP adopted in May 2007 as it does not constitute a new IDP. The five-year IDP 2007/ /2012 is available on the Municipality s Website Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009 3

6 1. IDP Review Process 2007/2008 The Sol Plaatje Municipality adopted a Process Plan for the Review of its IDP on 28 August 2007 (see Annexure 1). Due to unforeseen circumstances the Action Plan of the Process Plan could not be adhered to and had to be adjusted. Council therefore approved a revised Action Plan on 4 March 2008 as follows: TABLE 1 Revised Action Plan, 4 March 2008 Planning Activity Due Date Actual Date Strategic Planning Workshop with Executive Management Team 6 & 7 Mar & 7 Mar 2008 Strategic Planning Workshop with Mayco/Fin Com 11 Mar to 5 Apr 2008 Document outcome of Strategic Planning Workshop 12 Mar Mar 2008 IDP Rep/Business Forum Meeting 13 &14 Mar 2008 Did not happen (see below) Workshop Draft IDP/Budget with Political Principals 25 Mar to 5 Apr 2008 Submit draft IDP/Budget to Council 27 Mar Apr 2008 Advertise draft IDP/Budget and Public Participation Programme 1 Apr Apr 2008 Public Participation Process on draft IDP/Budget Continued discussions on Budget with Political Principals 7 Apr to 16 May Apr to 16 May 2008 Adjust IDP/Budget due to stakeholder input 16 to 23 May to 23 May 2008 Adopt IDP and Budget 2008/ May 2008 Post Budget 6 June 2008 Submit Municipal SDBIP to Executive Mayor 28 June 2008 A deviation from this Action Plan was also unavoidable as it was not possible to schedule a meeting with councillors before the due date for the submission of the draft IDP and Budget on 28 March It was therefore also not possible to schedule a meeting with both the IDP Business and Representative Forum. An intensive public participation process on ward level was however conducted during the period 14 April to 16 May TABLE 2 Actual Public Participation Process: April/May 2008 Date Ward Meeting No of Persons Comments 16 April 2008 Ward 1 and 2 83 Meeting postponed 15 May 2008 Ward 3 71 Ward 8 Did not take place 24 April 2008 Wards 5, 6, 7, 9, 10, April 2008 Wards 15, 16, 17 Meeting postponed due to non attendance 23 April 2008 Wards 18 and May 2008 Wards 26 and 27 Ritchie 59 Riverton 89 Ward 22 Did not take place A total of 371 persons from the community were reached during the above process. People were also afforded the opportunity to comment in writing both on the draft IDP and Budget as it was advertised in two local newspapers. The draft documents were also posted on the Municipality s website. Minutes of the above meetings are available on request. 4 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

7 2. Analysing for Improvements to the IDP 2.1 Sources of Information The following major sources of information were used in reviewing the IDP and to improve on the content thereof. Auditor General s Report 2006/ /2008 Mid-year Budget and Service Delivery Performance Report 2007/2008 Adjustment Budget Economic, Socio-economic and Demographic Status Quo Report from Global Insight Southern Africa April 2008 Frances Baard District Municipality Growth and Development Strategy Dec 2007 IDP Engagement Session with Sector Departments May 2008 In addition to these reports the Mid-year Budget and Performance Assessment Visit and report from National Treasury on 14 February 2008 also informed this review, especially in light of the linkage between the IDP, SDBIP, Budget and the Performance Agreements of the Municipal Manager and Managers Directly Accountable to the Municipal Manager. 2.2 Strategic Scan and Forecast of Issues that may Impact on the Remaining three years of the current IDP During the IDP review process a strategic environmental scan was undertaken with the view to determine if any major foreseeable changes will impact on the execution of the remaining three years of the current IDP cycle, and whether or not any changes needed to be effected to the current strategic focus of the IDP. In essence it was found, during the strategic planning working session with the executive management team and senior managers of Sol Plaatje, that the core strategic direction set in the IDP remain sound and correct, and that the main challenge is implementation, not direction. In terms of the strategic direction Sol Plaatje did not develop its IDP in isolation. A range of National and Provincial policy documents informs IDP thinking and creates an important context for our own plans and strategies. Achieving a developmental state is not a responsibility of government alone let alone local municipalities. In the spirit of the 2003 agreement at the National Growth and Development Summit, stronger social partnerships between government, organised labour, organised business and the community constituency are needed to address the investment, employment and poverty challenges our country faces. Over the last three years, government has developed a range of intervention approaches to support and guide action on growth and development. These documents include the following and have been integrated in the strategic direction set for Sol Plaatje: The Ten Year Review: Reflecting on the lessons and experience flowing from the first democratic decade; Asgi-SA: A framework setting out how South Africa can achieve shared and accelerated growth; National Spatial Development Perspective: Outlining a spatial approach to the economic development of South Africa; Northern Cape Growth and Development Strategy: Identifying the key levers for growth in the Province, and Frances Baard Growth and Development Plan. The most important guide for national spatial planning decisions is the National Spatial Development Perspective. Since its 2003 adoption by Cabinet, the NSDP has been reviewed, and an updated version was published by the Presidency in March The NSDP sets spatial criteria that are increasingly influencing government resource allocation. This is of vital interest to Sol Plaatje because the NSDP says, in effect, that government investment in economic infrastructure in future should be concentrated in areas that will yield the greatest economic growth not where there is the most pressing social (or political) need. In areas which have lower potential for economic growth, state spending should concentrate on meeting basic human needs and on human resource development. People in these areas should have access to good education opportunities so they can develop skills that are in demand elsewhere in the economy. In other words, if the local economy is not growing, help people to get marketable skills and help them to leave the area for other areas where they can get work. This is not a final situation it depends totally on the ability of regions to define development strategies that are effective in their circumstances. In February 2007, the Frances Baard District Municipality, which is anchored by Sol Plaatje as its economic centre, hosted its first Growth and Development Summit. Opened by the Provincial Premier, the two-day event provided the content outline for a comprehensive document, The Frances Baard Growth and Development Strategy, which included additional research and was prepared in draft form in October The key argument of the GDS is that: Frances Baard displays all the characteristics of a weak region. Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009 5

8 The realisation is not an acknowledgement of defeat or message of doom, but a precursor for designing an appropriately pitched Growth and Development Agenda. Importantly for Frances Baard, Kimberley has never made a successful transition from being a diamond mining boom town in the late 19th century to a modern urban economy there has been declining fixed investment in mining which has been pronounced in Frances Baard due to the De Beers closures. Neither manufacturing nor higher order service activities ever gained economic traction within Frances Baard, and the region has steadily lost out to nearby Bloemfontein since the 1960s. As a weak region, the Frances Baard GDS sets out three recommended strategies that weak regions should concentrate on to enable economic transition towards growth: Fix the basics. In partnership with the state, Frances Baard local government should improve its financial position and provision of basic services. Most fundamentally, Central and Provincial government should assure these towns a more consistent flow of local grant funding in exchange for increased accountability, transparency, and efficiency in local expenditures and service provision. Build the workforce of tomorrow. Lead a state-local partnership in the Northern Cape to radically step up education and training efforts. Building a human capital development strategy is thus a core intervention in the development tool box of weak regions. Create new economic connections for the 21st century. Cities, their regions, and the state must adopt a mentality of collaborative competition. In the past, prosperity turned on the sovereign power of individual businesses, factories, and mining towns. Today, economic development depends more on establishing partnerships, nurturing networks and building interconnected regions that can compete globally for jobs and services. Current efforts to work with Mangaung should be strengthened into a more structured and ever more creative co-opetition model, perhaps including similar efforts towards Potchefstroom, Klerksdorp and other strong regional economic centres on the south western edge of Gauteng. This diagnosis of a weak region and the generic strategies set out for survival all have immediate relevance in considering the best direction for the Sol Plaatje in developing its own City Development Strategy. In the IDP 2007/ /2012 the focus of the CDS was on an action-oriented project selection that would address the following key development factors: The real economy continues to decline The fundamentals of the local economy of Sol Plaatje continue to decline, and no sustainable alternative source of economic growth is evident. The decline is not new it has a history that is decades long, though it is hidden by intermittent diamond price booms and the lack of an expansion in provincial government employment after In the last decade, however, several sectors of the economy have lost their critical mass. Businesses contract, close or relocate to Mangaung. This has dire implications for the attraction of new investment. Sol Plaatje has suffered defeat in regional competition with Mangaung Mangaung is a major source of competition in the centre of the country and it has won this battle with Sol Plaatje. The two centres are too close together in an area of weak economic potential for both to grow substantially. Sol Plaatje is disadvantaged by the failure of the national transport authorities to maintain the N12 highway as an alternative route between Gauteng and the Eastern Cape and Western Cape. Issues with Leadership, and Governance The civic leadership has lost some credibility in recent years with most of its stakeholders. City leadership appears to be slow in facing up to implementing strategic plans. The CBD business community is now pessimistic after failed promises for focused intervention. (This was based on excellent plans, many of which were produced with the assistance of Swedish experts.) The city leadership has failed to engage effectively with the province and the Province s Growth and Development Strategy. As a result none of the Asgi-SA projects outlined by Cabinet will have any transformative impact on the city. (Asgi-SA includes upgrading a diamond-cutting and polishing factory and setting up a gemmology school in the Northern Cape, but these are small-impact projects.) Political pressure has not been assembled to address the poor state of the N12, probably the most vital issue for the future of the city as it allows interconnectivity with the rest of the country. This action-oriented project selection should also be able to: Create the correct shifts in the city s development pattern; Be at sufficiently large scale; Take a long view; Reach beyond the municipal constraints; and Be bankable. It was emphasised that implementation is also dependent on creating the correct preconditions for delivery; including institutional alignment, securing financial resources and creating optimal stakeholder configurations. These issues still need to be taken forward. The following CDS lead-in initiatives were concretised: 1 Create a logistical cluster through the upgrade of road and air infrastructure; 2 Create Sol Plaatje as a centre for energy generation and alternative energies; 3 Develop Sol Plaatje as a services hub, by addressing issues of urban renewal and CBD revitalisation. 6 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

9 The economic reality set out in the CDS and compellingly endorsed by the Business Trust nodal profile of Galeshewe suggest that the likely route for Sol Plaatje does not involve growth and expansion. Problems of economic decline require long-term solutions. Interim short and medium-term economic development strategies are needed in a transitionary phase. Sol Plaatje should therefore accept an alternative focus on development, not expansion. This means that SPM has to accept the need for a different approach to achieve economic sustainability that is based getting better and not bigger. Current economic realities should be analysed in greater detail and initiatives developed that will boost diversity and self-reliance. These should provide the necessary impetus to propel the City on a sustainable growth path. The key focus here is on economic initiatives that are based on focus, concentration and contraction rather than on economic expansion. Successful initiatives that concentrate on contracting the economy in a planned and orderly manner, and not expanding the economy, will lay the ground for a renewed local economy. The aims of this City Development Strategy should be to: Create an environment in which new growth has a chance While growth and expansion are the aims of national policy, the priority in SPM is to first slow down the rate of decline, then to stabilise the situation in the hope that a base for renewed expansion can be developed. The second slogan in this regard is: Better, not bigger These steps are not necessarily priorities in an area where economic activities are booming (such as in the southern Cape) or even in an area like Drakenstein Paarl/Wellington (of similar size to Sol Plaatje) where traditional areas of the economy are in decline, but where new areas are showing signs of development. The situation in Sol Plaatje is different, and more pressing. Political will and leadership is especially important to change the present direction to meet the two slogans quoted above! In this context, the following parts of the CDS should be emphasised in this review: Creating a logistical cluster through the upgrade of road and air infrastructure (Valid but not realistic without intensive lobbying) SPM, Frances Baard District and the Provincial Government should make the upgrading of the N12 their primary lobbying point with national government and the SOEs. But this cannot be the foundation of the SPM growth strategy because it is not yet a priority item on the agenda of any of the national players who count. As the Business Trust report says: Kimberley s geographical location means that it has the potential to be a central transport hub. The national freight network could be reconfigured so that more traffic passes through Kimberley but the likelihood of this happening is questionable. This would be extremely ambitious and is beyond the power of local stakeholders to effect. Creation of SPM as a centre for energy generation and alternative energies (Not valid an out-of-thebox idea which is useful for the vitality of the CDS process, but not realistic, unless there is a strong initiative from the private sector.) Developing Sol Plaatje as a services hub, by addressing issues of urban renewal and CBD revitalisation (Valid desirable and achievable with present resources, if the political will can be mustered.) CBD revitalisation could be the flagship project for SPM in a wider effort to get the basics right, to make the city a hub for education and learning and to build its transport and communication links to Mangaung and other regional centres. Apart from the above reviewed issues the questions of implementing the CDS still remains: How did the CDS envisage the initial implementation steps? Which of these steps are still do-able? How do we need to sophisticate our implementation planning to take advantage of the insights that emerged from the CDS process? The CDS was envisaged from the start as an iterative process a process where you continuously look at your progress and change what you are doing, if that is necessary. You do not decide on something and stick to it uncritically. You keep focused on your objectives and question whether there is a better way to reach them. Consistency remains one option and often a good choice but not if the road you choose leads straight into the marsh. The CDS emphasised consultation, discussion, communication, feedback and lobbying as an important part of all actions. That remains the case and this approach is correct. The areas for emphasis do however need to be agreed upon anew. The CDS takes a few areas to emphasise. In the absence of a vibrant and expanding business sector, the main responsibility for guiding the CDS must lie with the public authorities. By providing a sound, affordable and predicable environment, government can help business to control its risks and costs. In an uncertain economic situation, this can prove to be a crucial contribution. First improve governance. Second repair, refurbish and maintain city infrastructure both old infrastructure in Kimberley and new infrastructure in Galeshewe. (Implement the long-standing plans to revitalise the Kimberley CBD as a flagship project by organising total support from all spheres of government.) This project has the advantage of being within the ambit of the IDP, giving the Council a solid bargaining position when organising to get other stakeholders on board. Third support the educational institutions and centres for learning to allow young people to prepare themselves well so Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009 7

10 that when they leave the city they are better able to find employment elsewhere. This will require co-ordinated action with the province, SETA s and business. This is a positive project to educate people for a better life, even if that means moving to new pastures where their skills are better rewarded. Fourth motivate for more government support: align the city s economic plans with those of the PGDS to take advantage of support available from provincial and national government. lobby for investment by SOEs particularly in road and communication infrastructure. lobby for investment by government in Correctional Services, Defence, etc. Even a government call centre in Kimberley to take advantage of the good educational achievement of citizens. Fifth provide focused and selective support to private sector initiatives and projects (vigorously market the UDZ tax incentive package and do not support initiatives that further undermine the integrity of the CBD). In conclusion to the review on the City Development Strategy for Sol Plaatje, it is relevant to repeat the common traits that are present in cities that have been successful in pulling CDS type of initiatives together. These are: sustained commitment to a coherent plan over periods far exceeding electoral cycles; strong, and often charismatic, leadership, and quality urban governance; ability to unlock access to significant resources; an emphasis on catalytic investments in public infrastructure that unlocks opportunity and economic competitiveness; and established institutions capable of implementing bold and often complex initiatives. Successful cities, according to current evidence, offer competitive advantages in the following important arenas: Successful cities address the needs of the poor a city that works for the poor works for all. Deliberately dealing with poverty in an urbanised setting holds obvious advantages for the poor in gaining access to services and opportunities, and to the state as custodian of public service provision. The socio-political consequences of not addressing the needs of the urban poor are perhaps even a greater motivation for action. Yet, the ability of cities to address the conditions of poverty depends on urbanisation being combined with economic growth. Achieving sustained economic growth is therefore a precondition for sustained improvements in the lives of people. Sol Plaatje faces a strategic choice on how to deal with the needs of the poor there is a tension between investment in subsidised basic services and productive investments in the urban economy. The following bullet points reflect on the competitive advantages of cities in relation to growing the urban economy. Successful cities provide high quality living experiences in which people want to settle and invest. A city that works for the poor cannot be a city with a poor living environment. A high quality environment is a reflection of the range of economic opportunities, cultural experiences, sense of safety and a quality physical environment. The availability of a range of effective and efficiently provided public services, transport and amenities are important factors in creating a high quality living experience. A key intervention most commonly utilised in smaller city strategies is to position for lifestyle investment and the creative class, both being dependent on good living experiences and urban quality. Successful cities are home to healthy, tolerant and dynamic communities in which diverse groups can forge a common identity. Successful cities are well connected. Connectivity relates to availability of quality communications infrastructure, mass transit systems and excellent regional and international transport connections. Connectivity is a prerequisite in establishing a foothold in trade and financial flows within a region and global context. Public investments in transport and communications infrastructure are key factors influencing competitiveness. A key strategic consideration in focusing on connectivity relates to the challenge faced by small cities to remain relevant in the national spatial economy; and Successful cities provide agglomeration benefits. Increasing size generates agglomeration advantages since it stimulates a growing range of economic activity. Competitive agglomeration benefits are influenced by dispensable income, the cost of public services, transport, labour and other input costs, as well as the appropriateness of the labour skills to economic requirements. Where cities are unable to maintain a critical mass of economic activity they can experience a quick loss of business and jobs. While agglomeration benefits are important to ensure growth, the inverse is also true; inability to maintain agglomeration benefits can result in rapid decline. Successful cities care about the environment and sustainability and manage the environmental impact carefully as economic success increasingly becomes linked to environmental quality. The strategic outline above is important to keep the strategic big picture in mind while also dealing with the present strategic issues of the day! In light of this the proposed approach in the 2007/2008 IDP Review is thus the following: 8 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

11 Placing the emphasis on completion and finalisation of existing programmes and projects presently on the IDP schedule which address the Key Performance Areas and Strategic Objectives; Better preparation for the next IDP delivery cycle by bolstering the quality of planning for implementation; Improving the quality and depth of managing the implementation programme; Improving the quality and depth of financial and non-financial reporting to ensure reliable and accurate management information for improved service delivery; and Creating a better link between the IDP, SDBIP, Budget and Performance Agreements of top management ensuring transparency, accountability and efficient service delivery. In his budget speech on 28 May 2008, the Executive Mayor of Sol Plaatje Municipality also referred to the issues facing the long term sustainable development of the area by alluding to the following: The IDP forms part of the Macro Economic Plan of National Government and forms part of all future developments in partnership with all communities. The IDP should be used as a tool to involve the entire municipality and its citizens in finding the best solutions to achieve sustainable long term development. It takes into account the existing condition, problems and resources available for development. It cannot be over emphasised that where municipalities lack clear development plans, government departments and potential investors are reluctant to invest. We should endeavor to market our city more vigorously with all the tools at our disposal to ensure much needed job creation. Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009 9

12 3. Updating the Municipality s Socio-Economic Profile During March 2008 the Municipality procured the services of Global Insight Southern Africa to develop an Economonitor to provide consistent, accurate and timely socioeconomic data for planning purposes. A first step in this process was to ensure a consolidated platform of integrated databases that provides accurate and up-to-date economic, socio-economic, demographic and development information. A Status Quo Report on socio-economic data for the municipal area was completed in April 2008 by combining different sources of sub-national information from sources such as: Bureau for Market Research (BMR) at UNISA Statistics South Africa (StatsSA) South African Reserve Bank (SARB) South African Revenue Services (SARS) Council for Scientific and Industrial Research (CSIR) Chamber of Mines of South Africa (CM) Cement and Concrete Institute (CNCI) South African Petroleum Industry Association (SAPIA) National Electricity Regulator (NER) and Eskom Government departments, including National Treasury and the DTI Various development agencies Selected private research houses The following socio-economic data for Sol Plaatje Municipality has been included in the Report and the most relevant is captured in the IDP to serve as a common base for planning information for all stakeholders: Demographics Development Labour Income and Expenditure Economic International Trade 3.1 Demographics The following chart depicts the total population of Sol Plaatje as a percentage of the Northern Cape. Sol Plaatje comprises a large 20.3% of the total provincial population in The Frances Baard District Municipality (DM) has a population that accounts for 33.2% of the Northern Cape s population. Clearly, Sol Plaatje encompasses most of the population in the DM. CHART 3 Total Population of SPM as % of the Northern Cape province (2006) Rest of Frances Baard 12.9% Rest of RSA 97.8% Sol Plaatje 20.3% Rest of Northern Cape 66.8% South Africa Over the last ten years, the population in Sol Plaatje has grown slowly at an average pace of 0.92% per annum. In 2006, an estimated 214,161 people resided inside the Sol Plaatje Local Municipality (LM) which is a slight 0.38% higher Northern Cape than 213,344 in The table below depicts the total population numbers in Sol Plaatje from 1996 to 2006, as well as similar figures for the rest of the Province, and the whole of South Africa. 10 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

13 TABLE 4 SPM Total population (numbers) Period RSA Northern Frances Sol Plaatje Cape Baard DM LM Sol Plaatje Sol Plaatje LM as % of LM as % of Northern Cape Northern Cape ,997, , , , % 62.46% ,729, , , , % 62.33% ,436, , , , % 62.21% ,108, , , , % 62.09% ,733,385 1,007, , , % 61.98% ,315,052 1,018, , , % 61.87% ,852,434 1,029, , , % 61.69% ,351,641 1,038, , , % 61.52% ,798,547 1,045, , , % 61.38% ,216,493 1,051, , , % 61.24% ,560,742 1,056, , , % 61.12% % 0.45% 0.59% 0.38% % 0.73% 0.85% 0.61% % 0.96% 1.14% 0.92% Turning from population numbers to households, Sol Plaatje is fairly representative of the larger provincial economy in terms of its composition in terms of population groups. The household is the basic unit of analysis in many microeconomic and government models. The term refers to all individuals who live in the same dwelling. The following table presents the number of households in the LM for 1996, 2001 and 2006 for each of the four population groups. TABLE 5 Number of households by population group RSA Northern Frances Sol Plaatje Cape Baard DM LM Sol Plaatje LM as % of Northern Cape Sol Plaatje LM as % of Frances Baard 1996 Black 6,742,091 88,742 39,106 21, % 54.8% White 1,719,138 39,568 14,117 9, % 70.2% Coloured 720,854 78,973 16,212 11, % 71.9% Asian 245, % 92.7% Total 9,427, ,860 69,887 43, % 62.1% 2001 Black 8,452, ,140 48,732 26, % 54.6% White 1,822,372 42,084 15,100 10, % 67.2% Coloured 860,278 93,259 19,415 14, % 72.6% Asian 291, % 90.9% Total 11,426, ,131 83,682 51, % 61.2% 2006 Black 9,755, ,875 56,735 30, % 54.0% White 1,895,549 41,525 14,938 9, % 65.0% Coloured 922,087 97,604 20,459 14, % 73.0% Asian 311, % 90.5% Total 12,883, ,581 92,518 55, % 60.1% Growth Rates Black 3.76% 3.80% 3.79% 3.63% White 0.98% 0.48% 0.57% -0.20% Coloured 2.49% 2.14% 2.35% 2.50% Asian 2.39% -0.01% -1.61% -1.85% Total 3.17% 2.60% 2.84% 2.51% Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

14 According to the data, in 2006, 55.1% of households in Sol Plaatje were Black with an average growth rate of 3.63% per annum from 1996 to Approximately 26.8% of households in Sol Plaatje were Coloured and growing steadily at an average of 2.50% per annum. The chart below depicts the composition of households in Sol Plaatje in CHART 6 Number of households per population group (2006) According to the figures in the Economonitor, 53.6% of the total population in Sol Plaatje was Black in 2006, while Whites and Coloureds accounted for 45.7%. There are not many Asians residing in Sol Plaatje, and it is estimated that only 0.7% of the total population in the Municipality is Asian. The chart below demonstrates the composition of the population in Sol Plaatje. CHART 7 Population by population group (2001) White 17.5% Coloured 26.8% White 14.8% Coloured 30.9% Black 55.1% Black 53.6% Asian 0.6% Asian 0.7% Over the last decade, the population in the Northern Cape and the Sol Plaatje LM has declined at a steady, yet alarming pace. This indicates the migration of people away from the region towards the larger metropolitan regions such as Gauteng and Cape Town where the promise of wealth and status is a great lure. The following chart depicts the decline in population of both the Municipality and the Northern Cape. The downward pattern of Sol Plaatje mirrors closely that of the rest of the Province. CHART 8 Population growth - Sol Plaatje LM versus the Northern Cape 1.4 % Northern Cape - total 1.2 % Sol Plaatje - total Population growth rates 1.0 % 0.8 % 0.6 % 0.4 % 0.2 % 0.0 % In Sol Plaatje specifically there is a distinction to be made between the population growth rates of the different population groups. Whites and Asians are at a decline, while the average growth rate for Blacks and Coloureds between 1996 and 2006 has been 1.5% and 1.2% respectively. The following chart traces these growth rates from Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

15 CHART 9 Population growth per population group - Sol Plaatje Local Municipality 4.0 % 2.0 % Population growth rates 0.0 % -2.0 % -4.0 % -6.0 % -8.0 % % Sol Plaatje Local Municipality - Black Sol Plaatje Local Municipality - White Sol Plaatje Local Municipality - Coloured Sol Plaatje Local Municipality - Asian TABLE 9 A Population growth rate (%) [Total Population] Period RSA Northern Cape Frances Baard DM Sol Plaatje LM % 1.1% 1.4% 1.2% % 1.2% 1.4% 1.2% % 1.2% 1.5% 1.3% % 1.2% 1.5% 1.3% % 1.1% 1.4% 1.2% % 1.0% 1.1% 0.8% % 0.9% 1.0% 0.7% % 0.7% 0.9% 0.6% % 0.6% 0.8% 0.5% % 0.4% 0.6% 0.4% % 1.0% 1.1% 0.9% TABLE 9 B Population growth rate (%) [White] Period RSA Northern Cape Frances Baard DM Sol Plaatje LM % -0.5% -0.4% -1.2% % -0.5% -1.4% -1.2% % -0.5% -1.4% -1.2% % -0.4% -0.3% -1.1% % -0.7% -0.6% -1.4% % -1.3% -1.2% -2.0% % -1.2% -1.2% -1.9% % -1.5% -1.4% -2.0% % -1.5% -1.4% -2.0% % -1.5% -1.4% -1.9% % -0.9% -0.9% -1.6% Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

16 TABLE 9 C Population growth rate (%) [Asian] Period RSA Northern Cape Frances Baard DM Sol Plaatje LM % -1.2% -3.0% -3.2% % -1.2% -3.0% -3.2% % -1.1% -2.9% -3.2% % -0.7% -2.5% -2.9% % -2.5% -4.3% -4.7% % -6.2% -6.1% -6.2% % -7.7% -7.6% -7.7% % 0.6% 0.5% 0.5% % 0.7% 0.6% 0.6% % 0.7% 0.7% 0.7% % -1.9% -2.8% -3.0% TABLE 9 D Population growth rate (%) [Black] Period RSA Northern Cape Frances Baard DM Sol Plaatje LM % 1.7% 1.9% 1.8% % 1.7% 1.9% 1.8% % 1.7% 1.9% 1.8% % 1.7% 1.9% 1.8% % 1.6% 1.9% 1.8% % 1.7% 1.7% 1.4% % 1.5% 1.5% 1.3% % 1.4% 1.4% 1.2% % 1.3% 1.3% 1.1% % 1.2% 1.2% 1.0% % 1.6% 1.7% 1.5% TABLE 9 E Population growth rate (%) [Coloured] Period RSA Northern Cape Frances Baard DM Sol Plaatje LM % 1.1% 1.4% 1.6% % 1.1% 1.4% 1.6% % 1.2% 1.5% 1.7% % 1.3% 1.6% 1.8% % 1.1% 1.4% 1.6% % 0.9% 1.1% 1.3% % 0.7% 0.9% 1.0% % 0.5% 0.7% 0.8% % 0.4% 0.5% 0.6% % 0.1% 0.2% 0.3% % 0.9% 1.1% 1.2% 3.2 Development Development refers to the general state of social development on the Municipality and includes indicators such as education, literacy, poverty, urbanisation, the Gini Coefficient and the Human Development Index The education indicator measures the number of persons aged 15 and above in each of fifteen education categories by race and gender. Each magisterial district was estimated from the adjusted 1996 census data. 14 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

17 TABLE 10 Highest level of education per population group for 2006: age Level Black White Coloured Asian Total % share of total No schooling 6, , , % Grade 0-2 1, , % Grade , , , % Grade ,956 2, , , % Grade ,997 4, , , % Less than matric & certif/dip % Matric only 17,016 9, , , % Matric & certificate / diploma 3,867 3, , , % Matric & Bachelors degree 676 1, , % Matric & Postgrad degree % TOTAL 84,853 22,374 47, % 155, % CHART 10 Composition of highest level of education in Sol Plaatje, 2006 Matric & Bachelors degree - 1.5% Matric & Certi/dip - 5.6% Matric & Postgrad degree - 0.6% No Schooling - 7% Grade % Matric only 23.6% Grade % Less than matric & certif/dip 0.6% Grade % Grade % The Gini coefficient is a summary statistic of income inequality, which varies from 0 (in the case of perfect equality where all households earn equal income) to 1 (in the case where one household earns all the income and other households earn nothing). In practice the coefficient is CHART 11 Gini coefficient likely to vary from approximately 0,25 to 0,70. For Blacks and Whites the Gini Coefficient in 2006 is below the average for the country and the Province alike, indicating that there is better income equality in the region than elsewhere in the Province South Africa Northern Cape Sol Plaatje Black White Coloured Asian Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

18 The Human Development Index (HDI) is a composite, relative index that attempts to quantify the extent of human development of a community. It is based on measures of life expectancy, literacy and income. It is thus seen as a measure of people s ability to live a long and healthy life, to communicate, to participate in the life of the community and to have sufficient resources to obtain a decent living. The HDI can assume a maximum level of 1, indicating a high level of human development, and a minimum value of 0. On average, the HDI in Sol Plaatje is higher than that observed in the Northern Cape as a whole, and the rest of South Africa. There is a noticeable difference for Blacks, in particular, between the HDI in the Municipality versus the larger Northern Cape, This indicates that the level of human development in the Municipality exceeds that of the Provincial economy at large. CHART 12 Human Development Index South Africa Northern Cape Sol Plaatje Black White Coloured Asian Functional literacy is defined as the proportion of persons aged 20 and above who have completed Grade 7, and boils down to the ability to read, spell and to communicate through written language. An increase in the basic literacy skills of adults has a positive effect on any economy. CHART 13 Percentage of people literate Studies consistently find that adults with better literacy skills are more likely to be employed, and to earn more, than those with poorer literacy skills, even when taking account of other factors which affect work performance. The following chart shows the percentage of literate people in Sol Plaatje relative to the Northern Cape % 90.0 % Northern Cape Sol Plaatje 80.0 % 70.0 % 60.0 % 50.0 % 40.0 % 30.0 % 20.0 % 10.0 % 0.0 % Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

19 The poverty gap measures the difference between each poor household s income and the poverty line. It thus measures the depth of poverty of each poor household. The aggregate poverty gap is calculated by summing up the poverty gaps of each poor household. It is thus equivalent to the total amount by which the income of poor households need to be raised each year to bring all TABLE 14 Number of people in poverty - Sol Plaatje households up to the poverty line, and hence out of poverty. It is estimated that 74,147 people from Sol Plaatje were living in poverty in 2006, of which 77.5% were from the Black communities. However, these numbers have decreased at an average of 1.7% per annum since Period Black White Coloured Asian Total , , , , , , , , , , , , , , , ,537 1,131 17, , ,546 1,129 17, , ,000 1,117 16, , ,134 1,132 16, , ,575 1,118 16, , ,454 1,065 15, , % of total 77.5% 1.4% 20.9% 0.1% 100.0% % 5.8% 0.6% 2.7% 1.4% % -1.2% -2.2% -0.6% -1.8% CHART 14 Number of people in poverty - Sol Plaatje 90,000 80,000 70,000 60,000 50,000 40,000 30,000 Black White Coloured Asian Total 20,000 10, TABLE 14B Percentage of people in poverty (2006) RSA Northern Cape Frances Baard DM Sol Plaatje LM Black 53.6% 65.5% 62.4% 48.6% White 3.8% 5.3% 4.4% 3.8% Coloured 18.9% 38.1% 29.9% 23.3% Asian 6.8% 8.3% 8.8% 7.6% Total 44.4% 47.6% 46.7% 34.6% Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

20 TABLE 15 Poverty gap (R million) - Sol Plaatje Period Black White Coloured Asian Total % of total 0.1% 0.0% 0.0% 0.0% 0.2% % 9.9% 6.4% 7.9% 7.3% % 5.3% 4.6% 5.9% 4.7% As mentioned previously, the poverty gap refers to the total income shortfall of families with an income below the poverty threshold, divided by the total number of families. It is the amount of income that would be required to bring every poor person exactly up to the poverty line, thereby eliminating poverty. CHART 16 Poverty gap (R million) - Sol Plaatje The poverty gap in Sol Plaatje has been increasing in recent years meaning that persons, or households, lack the resources necessary to be able to consume a certain minimum basket of goods. The basket consists either of food, clothing, housing and other essentials (moderate poverty) or of food alone (extreme poverty). The graph below depicts the steady increase in the poverty gap over time since Black White Coloured Asian Total Urbanisation is estimated as the percentage of people living in urban areas for each region. Relative to the Northern Cape and South Africa as a whole, Sol Plaatje is largely an urban area. The graph below provides a snapshot thereof in 2006 for each of the population groups. 18 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

21 CHART 17 Urbanisation rate (2006) % 90.0 % South Africa Northern Cape Sol Plaatje 80.0 % 70.0 % 60.0 % 50.0 % 40.0 % 30.0 % 20.0 % 10.0 % 0.0 % Black White Coloured Asian 3.3 Economic Gross Domestic Product is a measure of the total economic activity occurring in a specific region. It can be measured in three ways: Production measures the GDP as the sum of all the value added by all activities which produce goods and services. Income measures the GDP as the total of income earned from the production of goods and services. Expenditure measures the GDP as the total of all expenditures made either in consuming finished goods and services or adding to wealth, less the cost of imports. Sol Plaatje s GDP accounts for approximately 31.6% of the Northern Cape s GDP. The following chart provides perspective of the relative size of the Municipality. CHART 18 Composition of GDP by region for 2006 [R millions, Current Prices] Rest of Frances Baard 7.0% Rest of RSA 97.7% Sol Plaatje 31.6% Rest of Northern Cape 61.4% South Africa Northern Cape Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

22 The following tables provide a detailed overview of the current and constant prices in GDP for South Africa, the Northern Cape, Frances Baard District Municipality, and Sol Plaatje. Constant prices refer to volume measures whose values are derived prices by applying to current quantities, prices pertaining to a specific base period. They allow figures to be represented so that the effects of inflation are removed. The values for each time period are expressed in terms of the prices in some base period. Current prices are the actual or estimated recorded monetary value over a defined period for a group of industries or products. They show the value for each item expressed in terms of the prices of that period. TABLE 19 Gross Domestic Product [R millions, Current Prices] Period South Africa Northern Cape Frances Baard DM Sol Plaatje LM ,957 14,210 5,540 4, ,731 15,303 6,150 4, ,426 17,363 6,729 5, ,684 20,434 7,745 6, ,150 23,068 8,430 6, ,020,008 25,208 9,141 7, ,168,699 27,443 10,383 8, ,260,692 30,060 11,381 9, ,395,367 32,547 12,399 10, ,541,068 35,511 13,858 11, ,741,061 40,644 15,680 12, ,994,894 46,405 17,723 14, ,283,452 52,984 20,188 16, ,530,755 59,038 22,303 18, ,799,794 65,711 24,574 20, ,096,090 73,160 27,080 22,187 Gross Domestic Product [R millions, Constant 2000 Prices] Period South Africa Northern Cape Frances Baard DM Sol Plaatje LM ,136 20,849 7,438 5, ,514 21,659 7,865 6, ,968 22,334 7,950 6, ,365 22,755 8,298 6, ,153 23,068 8,430 6, ,373 22,605 8,581 7, ,122 22,896 8,780 7, ,012,764 23,886 9,040 7, ,062,028 24,552 9,365 7, ,115,136 25,389 9,836 8, ,175,216 26,231 10,307 8, ,235,627 27,040 10,729 8, ,286,309 27,845 11,070 9, ,344,930 28,860 11,493 9, ,409,673 30,007 11,967 9, ,480,414 31,292 12,491 10,375 Growth Rates [Constant 2000 Prices] Period South Africa Northern Cape Frances Baard DM Sol Plaatje LM % 3.4% 5.0% 5.7% % 3.3% 4.8% 5.0% % 2.3% 3.3% 3.9% % 2.2% 3.4% 3.9% % 3.6% 3.9% 4.0% 20 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

23 Annual growth in the primary, secondary and tertiary sectors are shown below. In recent years, growth in the various sectors has been less erratic than in the past. CHART 20 Annual growth in Primary Sectors [Constant 2000 Prices] % Agriculture % Mining % % 0.00 % % % Both the agriculture and mining sectors have seen very little or negative growth since 2002, which doesn t paint a rosy picture for these sectors into the future. The exact reason for these slumps in growth is unknown, but does signal the need for intervention from the government. The charts below depict growth in the secondary and tertiary sectors in Sol Plaatje. CHART 21 Annual growth in Secondary Sectors [Constant 2000 Prices] % % % 0.00 % % % Electricity Construction Manufacturing % % Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

24 CHART 22 Annual growth in Tertiary Sectors [Constant 2000 Prices] % % % Trade Transport Finance Community Service % 5.00 % 0.00 % % % % Since 2004, growth rates in Sol Plaatje s secondary and tertiary sectors have remained largely positive, with slight fluctuations each year. There are many reasons for this and all indicate that the economy in Sol Plaatje is expanding sufficiently in accordance with national objectives. The following charts show the same information pertaining to the GVA, but in current prices, which is more representative of the composition of the Sol Plaatje economy for 1996, 2001 and There do not seem to be major changes in the sectoral base of Sol Plaatje since Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

25 CHART 23 Sectoral Gross Value Added in the Sol Plaatje LM [Current prices, 1996] Finance 21.6% Community Services 30.7% Transport 16.7% Agriculture 1.6% Mining Trade 11.3% Construction 2.9% Electricity 3.5% Manufacturing 3.3% 8.4% Sectoral Gross Value Added in the Sol Plaatje LM [Current prices, 2001] Finance 22.0% Community Services 29.7% Transport 13.8% Agriculture 1.7% Mining Trade 10.2% Construction 1.8% Electricity 2.6% Manufacturing 2.8% 15.4% Sectoral Gross Value Added in the Sol Plaatje LM [Current prices, 2006] Finance 24.6% Community Services 27.9% Transport 14.5% Agriculture 1.9% Mining Trade 13.6% Construction 1.6% Electricity 2.5% Manufacturing 3.1% 10.3% Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

26 Again it is very apparent that the tertiary sector dominates the Sol Plaatje economy. This includes community services, finance, transport and trade. Mining, in the primary sector, is in a close second place. The following table contains the 2006 GVA for Sol Plaatje on a sectoral basis relative to other regions. TABLE 24 Gross Value Added by Region (GVA-R) - Broad Economic Sectors [Current Prices, R1000] 2006 South Northern Frances Sol Plaatje Sector % Africa Cape Baard DM LM of Total SPLM as SPLM as % of % of FBDM NC Agriculture 43,043,400 2,886, , , % 45.8% 7.5% Mining 119,366,346 9,508,398 1,327,613 1,149, % 86.6% 12.1% Manufacturing 284,553,920 1,304, , , % 47.5% 25.9% Electricity 37,452, , , , % 64.0% 30.8% Construction 40,623, , , , % 85.8% 43.4% Trade 219,046,508 4,446,060 1,942,483 1,521, % 78.3% 34.2% Transport 145,846,244 3,321,210 1,780,567 1,619, % 91.0% 48.8% Finance 335,093,000 5,149,886 3,055,869 2,747, % 89.9% 53.3% Community services 318,912,800 7,945,463 3,655,593 3,119, % 85.3% 39.3% Total Industries 1,543,938,308 35,876,032 13,588,342 11,167, % TABLE 25 The location quotient is an indication of the comparative advantage of an economy. A provincial or magisterial economy has a location quotient larger (smaller) than one, or a comparative advantage (disadvantage) in a particular sector when the share of that sector in the provincial economy is greater (less) than the share of the same sector in the national economy. Sol Plaatje has a comparative advantage to the national economy in terms of mining, transport services, finance and community services. Location Quotient (2006) Frances Sol South Northern Baard Plaatje Africa Cape DM LM Agriculture Mining Manufacturing Electricity Construction Trade Transport Finance Community services Total Industries TABLE 26 Tress Index Frances Sol South Northern Baard Plaatje Africa Cape DM LM The Tress index indicates the level of concentration or diversification in an economy. It is estimated by ranking the nine sectors according to their contributions to GVA or employment, adding the values cumulatively and indexing them. A Tress index of zero represents a totally diversified economy, while a number closer to 100 indicates a high level of concentration. Sol Plaatje s Tress Index indicates that it has a smaller base from which it operates than the national economy thus, has fewer sectors that are major role-players than the rest of South Africa. Typically, any economy strives towards having a base that is as broad as possible - in an attempt not to have all its eggs in one basket. 24 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

27 TABLE 27 Annual Disposable Income - Sol Plaatje [Constant 2000 Prices, R million] Black White Coloured Asian Total , , , , , , ,005 1, , ,056 1, , ,171 1, , ,221 1, , ,298 1, , ,355 1, , ,514 1, , ,725 1, ,323 % of % 48.3% 20.0% 1.8% 100.0% % of % 36.1% 22.0% 2.0% 100.0% % 1.9% 5.9% 6.3% 4.9% % 3.0% 6.0% 5.8% 5.6% The total disposable income is calculated by subtracting taxes from total personal income. Table 27 shows annual disposable income in Sol Plaatje per population group since In 2006, annual disposable income in Sol Plaatje grew at an average of 5.65% per annum from This means 5.65% higher than inflation the figures above are in con- stant prices. The population group that experienced the highest growth in its annual disposable income are the Blacks, who also accounted for 39.9% of total disposable income in The following chart demonstrates the increases on disposable income that were observed in Sol Plaatje, and other areas. CHART 28 Annual Disposable Income - growth per year 14.0 % 12.0 % 10.0 % South Africa Northern Cape Frances Baard DM Sol Plaatje LM 8.0 % 6.0 % 4.0 % 2.0 % 0.0 % -2.0 % % Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

28 The following table reflects the distribution of income between the households in Sol Plaatje for 1996, 2001 and TABLE 29 Number of households by income category - Sol Plaatje % of ,042 1, % 12.1% ,240 2,221 2, % 6.1% ,487 4,330 3, % -7.3% ,350 5,841 4, % -3.5% ,761 6,958 5, % -2.7% ,446 5,571 5, % 1.4% ,462 4,378 4, % 2.3% ,572 4,622 4, % 3.2% ,921 4,175 4, % 5.1% ,605 3,967 4, % 6.5% ,304 3,459 4, % 7.5% ,316 2,723 4, % 12.9% ,931 5, % 26.5% Total 43,416 51,218 55, % In Sol Plaatje there is a shift away from the lower income brackets towards those that earn higher salaries per annum. For instance, the growth in the households that earn more than R192,000 per annum has been 12.9% compared to a decline of 7.3% in those households that earn between R12,000 and R18,000 per annum. The Index of Buying Power (IBP) is a measure of a region s general capacity to absorb products and services. This general capacity depends on three factors: the number of consumer units, which is measured by the size of the population; their ability to spend, which is measured by total income; and their willingness to spend, which is measured by total retail sales. TABLE 30 Index of buying power (2006) South Africa Northern Frances Sol Plaatje Cape Baard DM LM Population 47,560,742 1,056, , ,161 Population - share of national total 100.0% 2.2% 0.7% 0.5% Income 1,223,961 20,728 8,440 6,642 Income - share of national total 100.0% 1.7% 0.7% 0.5% Retail 398,453,000 10,339,349 3,752,935 2,905,335 Retail - share of national total 100.0% 2.6% 0.9% 0.7% Index 100.0% 2.0% 0.8% 0.6% Of the total buying power of the nation at large, 0.6% thereof resides within the Sol Plaatje Local Municipality, which is significant due to the fact that only 0.5% of the population as well as the total income in South Africa feature in Sol Plaatje. 26 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

29 Total personal income is calculated by adding the incomes of each household. The following table presents TABLE 31 the annual personal income of all population groups in Sol Plaatje from 1996 to 2006 in current prices. Annual Personal Income - Sol Plaatje [Current Prices, R million] Black White Coloured Asian Total Per Per Per Per Per Total Total Total Total Total Capita Capita Capita Capita Capita ,544 1,142 34, , ,143 2,293 11, ,687 1,267 39, , ,510 2,635 13, ,467 1,342 41, , ,246 2,878 14, ,048 9,761 1,464 46, , ,652 3,256 16, ,186 10,849 1,562 49, , ,300 3,578 17, ,397 12,554 1,680 54, , ,402 4,015 19, ,587 14,064 1,797 59, , ,763 4,428 21, ,770 15,477 1,865 62,907 1,032 15, ,251 4,767 22, ,919 16,577 1,965 67,664 1,105 16, ,650 5,094 24, ,239 19,124 2,170 76,226 1,260 18, ,914 5,786 27, ,627 22,222 2,422 86,775 1,459 21, ,012 6,642 31,014 % of % 49.8% 19.4% 1.8% 100.0% % of % 36.5% 22.0% 2.0% 100.0% % 13.0% 7.8% 9.6% 12.6% 11.2% 12.7% 16.2% 11.2% 10.2% % 12.1% 7.6% 9.7% 11.2% 10.3% 10.7% 13.6% 10.6% 9.9% In 2006, 39.6% of total personal income in Sol Plaatje is destined for Blacks, with 36.5% for Whites, 22.0% for Coloureds and 2.0% for Asians. The growth rates are somewhat misleading as the incomes are given at current prices, but still provide an indication of which incomes grew the most rapidly. The following chart graphically depicts these growth rates. CHART 32 Annual Personal Income - growth per year 16.0 % 14.0 % 12.0 % 10.0 % 8.0 % 6.0 % 4.0 % 2.0 % South Africa Northern Cape Frances Baard DM Sol Plaatje LM 0.0 % Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

30 The table below provides an indication of the spending patterns of the citizens of Sol Plaatje. TABLE 33 Retail Sales - Sol Plaatje % of Perishable and processed products 558, , , , % 10.5% 11.9% Inedible groceries 104, , , , % 22.9% 11.7% Beverages 33,028 38,301 41,219 49, % 5.2% 10.2% Cigarettes, manufactured tobacco 29,237 33,996 35,260 40, % 8.5% 13.3% Footwear 85,771 90,654 98, , % 8.1% 11.2% Mens/boys clothing 127, , , , % 8.8% 10.9% Ladies/girls and infants clothing 217, , , , % 8.5% 11.4% Textiles 40,932 45,154 48,894 55, % 9.2% 10.7% Household furniture 200, , , , % 7.3% 9.9% Domestic appliances 58,082 65,313 70,865 80, % 9.3% 10.8% Audio appliances 21,882 25,267 27,404 31, % 7.6% 10.8% Television sets 30,630 34,648 37,482 42, % 11.2% 10.5% Other domestic furnishings 24,786 28,782 30,728 34, % 6.8% 9.1% Glass and crockery 54,809 60,652 66,455 76, % 15.1% 11.9% Pharmaceuticals 274, , , , % 10.4% 11.0% Books and stationary 30,930 35,926 38,773 43, % 14.0% 10.4% Sport equipment 79,630 93, , , % 10.0% 10.1% Jewellery 55,768 65,057 69,611 78, % 3.9% 9.6% Hardware 27,845 30,420 33,513 37, % 6.0% 12.2% Other 36,124 37,240 43,407 49, % 15.3% 12.1% Total 2,093,867 2,343,223 2,550,984 2,905, % The economically active population is defined as the number of persons that are able and willing to work between the ages of 15 and 65. It includes both employed and unemployed persons. The following charts indicate the composition of the economically active population in Sol Plaatje (and the Northern Cape) per population group and gender, in 1996 and CHART 34 Economically Active Population (1996) Black - Male Black - Female White - Male White - Female Coloured - Male Coloured - Female Asian - Male Asian - Female Northern Cape Sol Plaatje LM 28 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

31 CHART 35 Economically Active Population (1996) Black - Male Black - Female White - Male White - Female Coloured - Male Coloured - Female Asian - Male Asian - Female Northern Cape Sol Plaatje LM Since 1996, the number of formally employed people in Sol Plaatje has increased somewhat across most sectors, except agriculture, manufacturing and transport. The next table provides an overview of the numbers of people employed in each of the broad economic sectors in 1996, 2001 and TABLE 36 Number of formally employed people Sol Sol Sol SPLM as SPLM as SPLM as SPLM as Plaatje Plaatje Plaatje % of NC % of SA % of NC % of SA LM LM LM SPLM as SPLM as % of NC % of SA Broad Econ. Sector Agriculture 2, % 0.2% 2, % 0.2% 1, % 0.2% Mining 1, % 0.2% 2, % 0.5% 2, % 0.5% Manufacturing 3, % 0.3% 3, % 0.3% 3, % 0.2% Electricity % 0.6% % 0.6% % 0.6% Construction 1, % 0.5% 1, % 0.6% 2, % 0.6% Trade 7, % 0.7% 9, % 0.7% 12, % 0.7% Transport 4, % 0.9% 4, % 0.9% 3, % 0.9% Finance 2, % 0.4% 3, % 0.4% 4, % 0.4% Community Services 12, % 0.8% 14, % 0.8% 16, % 0.8% Households 5, % 0.5% 5, % 0.5% 5, % 0.5% Total 42, % 0.5% 47, % 0.6% 54, % 0.6% In 2006, 25.9% of the people employed in the Northern Cape were employed inside the Sol Plaatje Local Municipality. This equates to 0.6% of the national economy. The sectors that employ the most people were transport, finance and manufacturing. The following line charts illustrate growth in formal employment in: i) the primary sectors, ii) the secondary sectors, and iii) the tertiary sectors. Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

32 CHART 37 Formal Employment - growth over time. Primary Sector % 60.0 % Agriculture Mining 40.0 % 20.0 % 0.0 % -20.0% % CHART 38 Formal Employment - growth over time. Secondary Sector % 20.0 % Manufacturing Electricity Construction 15.0 % 10.0 % 5.0 % 0.0 % -5.0 % % CHART 39 Formal Employment - growth over time. Tertiary Sector % 15.0 % 10.0 % Trade Transport Finance Community Services 5.0 % 0.0 % -5.0 % % % Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

33 In terms of informal employment, community services and trade are by far the sectors that employ the most people. No information is available about employment in the informal sector at magisterial district level and it thus needs to be imputed. The 1996 population census measured total employment (i.e. both formal and informal sector together) in each magisterial district, and a number of assumptions need to be made to divide that employment into formal and informal. In 2006, 4,969 people were employed in the informal sector of which 3,183 were involved in informal trade activities. TABLE 40 Number of employed people in the informal sector Sol Sol Sol SPLM as SPLM as SPLM as SPLM as Plaatje Plaatje Plaatje % of NC % of SA % of NC % of SA LM LM LM SPLM as SPLM as % of NC % of SA Econ. Sector Manufacturing % 0.1% % 0.1% % 0.1% Construction % 0.0% % 0.0% % 0.0% Trade % 0.2% 2, % 0.2% 3, % 0.3% Transport % 0.2% % 0.1% % 0.1% Finance % 0.3% % 0.3% % 0.3% Community services % 0.5% % 0.5% 1, % 0.5% Total informal 1, % 0.2% 4, % 0.2% 4, % 0.2% CHART 40 Informal Employment - Sol Plaatje LM % by sector Manufacturing Construction Trade Transport Finance Community Services Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

34 Annual change in the number of people employed in the various informal sectors is erratic and largely determined CHART 41 Informal Employment - growth over time by forces driving demand for goods and services. The chart below illustrates these movements % 50.0 % 40.0 % Manufacturing Construction Trade Transport Finance Community Services 30.0 % 20.0 % 10.0 % 0.0 % % % % Total employment in Sol Plaatje consists of employment in both formal and informal sectors. In 2006, there were an estimated 59,332 people employed in Sol Plaatje, which is TABLE 42 Northern Cape Total Employment approximately 25.9% of all people employed in the Northern Cape. Between 2001 and 2006, total employment in Sol Plaatje grew at an average of 2.8% per annum. Frances Sol SPLM as SPLM as Baard Plaatje % of % of NC DM LM FBDM ,952 64,815 43, % 67.3% ,989 66,232 45, % 68.3% ,468 67,865 46, % 69.0% ,356 72,107 50, % 69.9% ,046 73,972 51, % 70.0% ,616 73,540 51, % 70.2% ,508 73,934 52, % 70.5% ,924 76,253 53, % 70.5% ,094 77,055 54, % 71.2% ,202 80,196 57, % 71.9% ,891 82,014 59, % 72.3% % 2.4% 3.1% % 2.2% 2.8% CHART 43 Unemployed people - Sol Plaatje LM 2006 Asian 0.9% Black 59.9% Coloured 36.6% White 2.7% 32 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

35 The Economonitor uses the expanded definition of unemployment in that it includes persons who are unemployed and looking for work as well as persons who are unemployed and are not looking for work but would accept work if it was offered to them. Unemployment is measured at place of residence. It is estimated that there were 30,861 unemployed people in Sol Plaatje in Of this amount, 59.9% were Black, while 36.6% were Coloured. Unemployment numbers have increased since 1996, and the following table shows unemployment for 1996, 2001 and 2006 per population group and gender. TABLE Number of Unemployed People - Sol Plaatje Black White Coloured Asian Total Male 5, , ,116 Female 6, , ,924 Male 7, , ,945 Female 9, , ,448 Male 7, , ,590 Female 10, , ,271 CHART 44 Number of Unemployed people (expanded definition) Sol Plaatje LM % Black White Coloured Asian Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

36 The rate of unemployment in Sol Plaatje has increased steadily since The following chart depicts this increase for male and female alike, per population group. CHART 45 Unemployment rate - Sol Plaatje LM 60.0 % 50.0 % 40.0 % 30.0 % 20.0 % Black White Coloured Asian Total 10.0 % 0.0 % Umeployment rates are on the rise for both males and females from the Coloured and Asian communities. Within the Black community there is a decline in the unemployment rate since CHART 46 Unemployment rate - Sol Plaatje LM by gender 80.0 % 70.0 % 60.0 % Black White Coloured Asian Total 50.0 % 40.0 % 30.0 % 20.0 % 10.0 % Male Female 34 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

37 3.4 Conclusions on Socio-economic update Via the Economonitor, the following has come to light regarding the economic, socio-economic and demographic status quo of Sol Plaatje: Sol Plaatje comprises a large 20.3% of the total provincial population in The Frances Baard District Municipality (DM) has a population that accounts for 33.2% of the Northern Cape s population. Clearly, Sol Plaatje encompasses most of the population in the DM. Over the last ten years, the population in Sol Plaatje has grown slowly at an average pace of 0.92% per annum. In 2006, an estimated 214,161 people resided within the Sol Plaatje Local Municipality (LM) which is slightly higher by 0.38% than the 213,344 in According to the data, in 2006, 55.1% of households in Sol Plaatje were Black with an average growth rate of 3.63% per annum from 1996 to Approximately 26.8% of households in Sol Plaatje were Coloured and growing steadily at an average of 2.50% per annum. If one looks at the age of the citizens in Sol Plaatje relative to that of the Northern Cape, 56.7% of the total population in the Municipality are between the ages of 20 and 65, in comparison with 53.9% for the Northern Cape. It is estimated that 74,147 people from Sol Plaatje were living in poverty in Of this amount, 77.5% were from the Black communities. However, these numbers have decreased at an average of 1.7% per annum since The poverty gap in Sol Plaatje has increased in recent years, meaning that persons or households lack the resources necessary to be able to consume a certain minimum basket of goods. Sol Plaatje s GDP accounts for approximately 31.6% of the Northern Cape s GDP. The largest economic role-players in Sol Plaatje are those in the tertiary sector i.e. community services, finance, transport and trade. The mining sector also contributes significantly towards the economy of Sol Plaatje. In 2006, the annual disposable income in Sol Plaatje grew at an average of 5.65% per annum from The population group that experienced the highest growth in its annual disposable income are the Blacks, who also accounted for 39.9% of total disposable income in In 2006, 25.9% of the people employed in the Northern Cape were employed inside the Sol Plaatje Local Municipality. This equates to 0.6% of the national economy. The sectors that employ the most people were transport, finance and manufacturing. Total employment in Sol Plaatje consists of employment in both formal and informal sectors. In 2006, there were an estimated 59,332 people employed in Sol Plaatje, which is approximately 25.9% of all people employed in the Northern Cape. Between 2001 and 2006, total employment in Sol Plaatje grew at an average of 2.8% per annum. From these findings, the following is apparent: Sol Plaatje is a large economic and socio-economic role-player in the Northern Cape economy; The economy of Sol Plaatje is heavily dependent on the tertiary sector which is traditionally not very labour intensive; Sol Plaatje must be cautious of an economy that is very narrowly based and reliant on a limited number of sectors. This baseline information again confirms the strategic direction in terms of its long term sustainable development that Sol Plaatje needs to embark on as outlined in Section 2.2 of this document. Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

38 4. Reviewing the Key Performance Areas (KPAs) and Strategic Objectives In light of the strategic scan conducted in early March 2008 as well as in line with the Objects of Local Government as captured in the Constitution (s152), the Municipal Systems Act and the Municipal Performance Regulations for Municipal Managers and Managers Directly Accountable to Municipal Managers, the Sol Plaatje Municipality confirmed that the set KPAs and Strategic Objectives are still relevant and appropriate. During the strategic scan it was however also confirmed that due to internal and external changes in the Municipality s working environment, emphasis shifts within the Key Performance Areas are necessary which will also affect the Strategic Objectives within some of the KPAs. These emphasis shifts and the reasons for these shifts are discussed below. KPA 1: Local Economic Development IDP Objectives Emphasis Shift May 2007 March 2008 Additional Comment To ensure local economic growth of 4% by 2014 To halve the present rate of unemployment by 2014 To halve poverty by 2014 To ensure that the Municipality spends 60% of its procurement budget to local BEE and SMME Enterprises annually. The original objectives set were found to be unrealistic in the local SPM context considering the state of predicted local economic development both as concluded in the IDP 2007/ /2012 as well as the recently released Frances Baard Growth and Development Strategy. The municipality s approach to LED should change from low impact high resource initiatives to an approach based on leveraging LED off infrastructure investment. A functional marriage between LED and infrastructure development should be facilitated (see also shift in emphasis in KPA 2 Basic and Sustainable Service Delivery). Urban Renewal and Neighbourhood Development needs to be applied more creatively and more inclusively, and not be undertaken in a manner that further distorts imbalances and inequity. Without the City of Kimberley growing economically as a whole it will be very difficult to ensure growth in areas like Galeshewe as an Urban Renewal Node. The indicators originally developed for the objectives and targets in this KPA are mainly outcome indicators for which SPM has very little control over, and for which it has not yet developed the necessary measuring instruments. At present it is not possible to know whether any of the LED initiatives are making any in-roads in economic development, and whether impact is made to create a better standard of living for all. An initiative is presently ongoing to develop an Economonitor to assist the Municipality in this regard. As part of this exercise the necessary indicators will be developed in order to measure the trends in the local economy to determine what interventions are needed from all stakeholders. It is foreseen that the Economonitor be developed by the end of June It will only then be possible to develop realistic indicators and targets to monitor LED in Sol Plaatje. The National Framework for Local Economic Development (LED) in South Africa (released in August 2006) promotes a strategic approach to the development of local economies and a shift away from narrow municipal interests focused only on government inputs into ad-hoc projects. The application of the National Spatial Development Perspective (NSDP), Industrial Policy, Asgi-SA and the Provincial Growth and Development Strategies (PGDSs) through joint action with municipalities institutionalised in IGR forums is the driving force for local and hence national economic growth and development. SPM cannot achieve effective LED unilaterally. In this regard the initiatives in the proposed CDS are of utmost importance and must be addressed in the review of the existing LED Strategy. 36 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

39 KPA 2: Basic and Sustainable Service Delivery Original Objectives Emphasis Shift Additional Comment To provide 1,700 households with basic electricity by To provide 1,215 households in formal areas with a metered water connection by 2009/2010. To provide 5,645 households in formal settlements with basic sanitation by 2011/2012. To eradicate the bucket system in all pre-1994 formal residential areas (682) by December To provide 2,249 households with a weekly solid waste removal service by 2009/2010. To ensure that 50 km of additional roads are tarred by 2011/2012 To reduce electricity losses to 10% by 2010/2011 To reduce water losses to 15% by 2010/2011 To have a five-year Integrated Infrastructure and Assets Maintenance, Operations and Recapitalisation Plan in place by June 2008 (18 months) Sect 63 MFMA To effectively and efficiently manage, operate and maintain SPMs Infrastructure and Resources by 2010/2011. To ensure that all informal settlement areas are upgraded in accordance with the Human Settlement and Redevelopment Programme by 2011/2010. To provide shelter for all by 2014 based on current demographic projections. Bulk infrastructure maintenance, upgrade, replacement and supply remain critical priorities if Sol Plaatje is serious about the future of the municipality. Infrastructure provision and rehabilitation should perhaps be treated as a KPA separate to the meeting Basic Needs KPA (see comments in column 3). The infrastructure KPA should also have a specific focus on the integration of sustainable energy strategies into the main stream of the municipality s planning, budgeting and service delivery processes. The emphasis shift should also be on sustainable service delivery rather than basic service delivery. The environment should feature stronger on the next three year agenda and the Municipality needs to prioritise the completion of an Integrated Environmental Management Plan, as well as an Integrated Waste Management Plan. In order to meet increasing service delivery needs creative partnerships with, amongst others, the private sector should be explored New approaches to dealing with unrealistic wish lists generated by councillors and the public needs to be introduced. In this regard the Municipality needs to develop a uniform understanding of each KPA and to start differentiating the service delivery agenda to be more focused on the varying needs of communities. It has become clear from the strategic scan that without a focused Municipal Infrastructure Investment Framework (MIIF), the Municipality will not be able to sustain continued development, nor be financially sustainable. The MIIF will enable the Municipality to address the development of new infrastructure in a balanced manner between productive new infrastructure for economic development, and infrastructure for basic services to subsidised housing, eradication of backlogs, and to ensure the recapitalisation, refurbishment and upgrade of aging infrastructure. In this regard it is also crucial to complete and implement the Long Term Infrastructure Maintenance and Operational Plan, linked to a realistic Infrastructure Investment Plan as part of the MIIF as a high priority. A new strategic approach should also be taken in the provision of housing in line with the Human Settlement and Redevelopment Programme. It is urgently required that the Housing Chapter for the IDP be completed as a matter of urgency and should, apart from low cost housing, also include the following issues: All segments of the housing market should receive attention. Attention should be given to rental options as well as social housing in line with the Social Housing Policy for South Africa. In this regard close co-operation should exist between the Sol Plaatje Housing Company and the Municipality as well as the further development of the initiative and partnership between the Municipality, Provincial Government and Conkim (housing support from the Netherlands). Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

40 KPA 3: Municipal Financial Viability and Management Original Objectives Emphasis Shift Additional Comment To increase the payment level to 87% by 2010/2011. To spend at least 85% of the Capital Budget annually To increase the municipal reserves by at least 1% per annum To raise the Debt Coverage Ratio to 2:1 by 2010/2011 Outstanding Service Debtors to Revenue 2:68 by 2010/2011 Cost Coverage Ratio to 1:1 by 2010 To ensure the effective management of the Budget by The municipality s financial sustainability will remain a problem as long as the municipality is dependent on national and provincial government grants to meet the basic needs of its citizens. The culture of financial dependence has created a lack of willingness to accept responsibility for own finances as reflected in the slippage in debt collection levels, and the lack of commitment to cost savings and revenue enhancement strategies. A Financial Plan (as required by the MSA) must be prepared to define sound financial management and expenditure control, as well as means of increasing revenues and external funding for the municipality to achieve its development priorities and objectives. It should further address: Revenue raising strategies Asset management strategies Financial management strategies Capital financing strategies Strategies that will enhance cost-effectiveness Operational financing strategies. 38 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

41 KPA 4: Municipal Institutional Development and Transformation Original Objectives Emphasis Shift Additional Comment To ensure that Management at all levels is 100% representative and in line with the Employment Equity Plan by To ensure that the Job Evaluation System is 100% implemented by To ensure 100% implementation of the Skills Development Plan by To ensure enhanced service delivery with efficient institutional arrangements by June To ensure the development and implementation of an Integrated Information Management System by To ensure that efficient business processes and management systems are 100% in place and functional by To ensure that the micro organisational restructuring is 100% complete by June To ensure the completion of a Human Resource Strategy by To fully implement the Institutional Transformation process by 2010/2011. Institutional Development and Transformation should be prioritised as a KPA as basic issues such as leadership, good governance, sound human resource management, staff morale, confusion in respect of strategic direction, organisational arrangements, team work and internal communications remain major issues in the municipality. Institutional development should enjoy much more attention and the attraction, retention and development of skilled people should be made a top priority. The work environment requires urgent attention, with specific reference to staff training, proper induction, career path development, a curtailment of ongoing systems change when perfectly good systems are being replaced by less effective systems, and staff members need to be encouraged to build the Sol Plaatje Brand and show pride (Batho Pele principles) in their work. Objectives in this KPA aim at transforming the municipality for improved performance and service delivery and should deal with the following types of change management: Strategies for improving work methods; Strategies addressing behaviour, attitudes and values of staff; Management processes for increased accountability. Developmental programmes cannot efficiently be implemented without having an appropriate organisational vehicle with which to do it. In order to achieve this the following interventions are urgently needed: Review core business; Strategies for changing structures and organisational design; System and processes improvement (including implementation of the MIS Strategy); Business process re-engineering. The core business analysis has been done within the Alternative Service Delivery Framework (ASDF) and this strategic document, adopted by Council in 2005, should be implemented. Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

42 KPA 5: Good Governance and Public Participation Original Objectives Emphasis Shift Additional Comment To ensure democratic and accountable governance by 2010/2011 by ensuring an unqualified Audit Report To establish structured public participation process for the different levels of planning and development processes of the Municipality by 2008 To ensure that all wards have formally elected and functional ward committees by July 2009 To ensure that a comprehensive communication system is in place by July 2007 To ensure 75% satisfaction of residents and Councillors with frontline, face-to-face, telephonic and overthe-counter service of the Municipality by 2010 The good governance of the municipality still suffers as a result of an unproductive and unconstructive political / administration interface and will continue to do so, as long as the political leadership continues to intervene in the management arena. Performance Management beyond the Institutional level and Section 57 Managers should be introduced to make employees at all levels accountable for performance. The Office of the Municipal Manager should be responsible for seeing to the good governance of the municipality and, if need be, should be bolstered to fulfill this role. The Municipality should also actively, through a progressive action plan, address the Auditor General s opinion in order to be able to gain a favourable audit opinion from the AG s Office. The strategic agenda outlined above needs to be operationalised within the Municipal organisation. These priorities need to inform the activities and resource allocation of the Municipality in a way that the strategic objectives and targets will be met. This is done through the consolidation of the above strategic objectives into the Municipality s Multi-year Municipal Performance Plan (Institutional Scorecard) (see Annexure 3, page 85). The Multi-year Municipal Performance Plan informs the annual Service Delivery and Budget Implementation Plan (SDBIP) as concrete, realistic and measurable indicators and targets. These priorities should influence the budget allocation to the different Directorates in line with their respective Operational Plans (Directorate SDBIP) especially in terms of the operational budget. Similarly the capital programme for SPM should be informed by these priorities. 40 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

43 5. Mid-year Performance 2007/2008 and Remaining Gaps in the IDP Before actually going into the next cycle of implementation an overview is given of the Mid-year performance of the Municipality, both in terms of the Budget and Service Delivery Targets. The detailed Mid-Year Budget and Service Delivery Performance Report is as per Annexure 2, (page 63). 5.1 Capital Programme An annual target to expend at least 85% of the capital budget was set for the 2007/2008 financial year. A Capital Budget of R155,839,170 was approved by Council on 31 May The Mid-year target was set at 38% (R59,218,885) in order to compensate for the requirements of the Supply Chain Management process as well as the period between mid December to mid January when very little project implementation takes place. An unqualified actual performance of only 15.11% (R23,540,470) was achieved by 31 December The 15% achievement should however be qualified since the approved capital budget for 2007/2008 included an amount of R58,016,299 for project delivery by other spheres of government as well as Eskom. This amount has erroneously been included in the Municipal budget. In addition, an amount of R18,442,417 was also already committed on projects and should be included as actual spent. Should the amount of R58,016,299 therefore be omitted, and the amount of R18,442,417 be added in the calculation of the actual spent against the budget, an achievement of 35% was realised for the period 1 July 2007 to 31 December Although this reflects a much better performance, it is still below the set target, and a concerted effort is necessary to bolster implementation of projects for the remainder of the financial year to achieve the target of 85%. This is also a reminder that more attention should be given in preparing the capital budget, as well as giving more attention to the preparation process for project implementation. The main reason given for the poor performance on capital budget spent is the long Supply Chain Management process in procuring the services of consultants and contractors. In general it was also found that project management is still not up to standard. Capacity is also a stumbling block as some project managers have to manage more than ten projects simultaneously worth tens of millions of rand. 5.2 Operational Budget The performance on the Operational Budget exceeded the Mid-year targets. An operational budget of R579,826,000 was approved with a Mid-year revenue income target of R144,956,500. At 31 December 2007 revenue to the amount of R302,708,697 was realised (208,83%). On the expenditure side a target of R168,105,000 (31,81%) was budgeted, and an amount of R129,150,209 (24,44%) was actually expended. 5.3 Service Delivery Targets All the Mid-year service delivery targets set for the provision of water, sanitation, including the total eradication of the pre-1994 buckets, and roads were met or exceeded even where no targets were set due to a lack of resources to implement projects. The electricity targets were not met mainly due to a lack of funding. A shortfall of funding is experienced due to the fact that the Municipality provides a higher level of service than what is funded from the DME electrification grant. This shortfall needs to be provided as counterfunding from the Municipality s own funds, which is not always possible. Some indicators could also not be measured or are doubtful results due to a lack of baseline information or inadequate management information systems (e.g. water losses, payment levels, procurement from local SMMEs and BEEs etc). Most of the targets that were not met were those set within the Institutional Development and Transformation and Good Governance KPAs. This aspect was also highlighted during the strategic scan conducted in early March 2008 and is earmarked to be addressed during the 2008/2009 financial year. (See section 4, page 36) Another area of concern in terms of the service delivery targets is the lack of realistic and measurable indicators to measure Local Economic Development. This has also been highlighted above and should be resolved once the Economonitor has been developed. 5.4 Remaining Gaps in the IDP A concerted effort was made to fill the content gaps within the IDP since its inception in Most gaps have since been addressed, although some important issues are still outstanding, both legally required sector plans, as well as internally required plans and strategies. The table below indicates the progress made in filling the content gaps as well as the remaining gaps: Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

44 TABLE 48 Content Gap Filled/ Remaining Spatial Development Framework (SDF) and Land Use Management System (LUMS) LED Strategy Integrated Transport Plan (ITP) Water Services Development Plan (WSDP) Disaster Management Plan (DMP) Integrated Waste Management Plan (IWMP) Integrated Environmental Management Plan (IEMP) Achievement/Challenges An SDF was adopted by Council in 2005 and is presently being reviewed to be completed by end May Linked to the review of the SDF is the preparation of a LUMS to ensure the implementation of the SDF through a consolidated legally compliant zoning scheme and land use regulations. The LUMS is scheduled to be completed by mid August An LED Strategy was adopted by Council in This strategy is presently being reviewed in line with the analytical conclusions of the City Development Strategy initiative as well as the National Framework for Local Economic Development in South Africa. This process is scheduled to be completed by mid September Council adopted its ITP in October Some projects emanating from this Plan are presently being implemented, funded from the Department of Transport. The existing draft WSDP (2003 edition) needs to be reviewed. An application was submitted to DWAF to assist both financially and technically to complete this process as a matter of urgency. The current disaster hazard, vulnerability and risk assessment has been reviewed and updated. These results were used to complete a Disaster Management Plan to identify communities, infrastructure and critical facilities at risk. Appropriate disaster risk reduction projects need to be identified to reduce these risks. The Disaster Management Plan is scheduled to be adopted by Council by end August An application will be submitted to FBDM for financial assistance in order to prepare an IWMP for Sol Plaatje which is still outstanding. During the latter half of 2004 FBDM appointed service providers to prepare an IEMP for the District, including SPM as one of the four local municipalities in the District. SPM was represented on the Project Steering Committee tasked, along with the service providers, to manage the process. A work document called Integrated Environment Management Programme: Sol Plaatje Municipality: Strategies Report Work Document was released in July The status of these documents could not be determined, but can serve as a basis to prepare a legally compliant IEMP. Funds will be applied from FBDM to complete this process. No institutional responsibility presently exists within the organisational structure of SPM to take responsibility for environmental management issues which should be addressed as a matter of urgency, as this is also a legal requirement in terms of the National Environmental Management Act (NEMA). According to the Municipal Systems Act a Financial Plan should be a core component of the IDP. The Financial Plan should define sound financial management and expenditure control as well as a means of increasing revenues and external funding for the Municipality to achieve its development priorities and objectives. It should further address: Financial Plan Revenue raising strategies Asset management strategies Financial management strategies Capital financing strategies Strategies that will enhance cost-effectiveness Operational financing strategies. A consolidated Financial Plan has not yet been prepared although most of the issues raised above are being addressed as separate entities. 42 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

45 INTERNALLY REQUIRED PLAN/PROGRAMMES/STRATEGIES The Comprehensive Infrastructure Planning Framework for Achieving Sustainable Municipal Service Delivery was prepared by DPLG. In this Framework it is stated that it is every municipality s responsibility to provide all its communities with the necessary infrastructure services for water, sanitation, energy, access and transport, solid waste, as well as ensure that other key services (e.g. education, health, sports and recreation, and community services) are planned in collaboration with the relevant service providers. This calls for the following actions: Ensuring that the necessary infrastructure assets are provided, operated and maintained (i.e. addressing their full life cycle) Ensuring that the necessary funding is available for the total costs involved over the full extent of the life cycle of the assets, by collecting revenue from consumers, utilising available grant funds, and providing the required operating and capital funds to achieve the goals Ensuring that an institutional model exists for providing the necessary skills, processes and procedures to manage the assets Ensuring that the necessary bulk supplies (e.g. for water and electricity, as well as waste water treatment capacity) are available Ensuring that the growth needs of the municipality are addressed by considering local economic development initiatives, and taking cognisance of changing needs of communities while involving them in planning the provision of the above services. Comprehensive Infrastructure Planning Framework (CIPF) Various frameworks for assisting municipalities in achieving these goals have been developed since 1994, and this most recent development steers towards the integration of a number of key drivers aimed at achieving the provision of sustainable infrastructure services in municipalities. The development of a Comprehensive Infrastructure Plan (CIP) at a municipal level will serve as a clear business model providing strategically focused actions for implementing the key initiatives identified in the IDP, while addressing sustainability over the full life cycle of infrastructure assets. This will be achieved by ensuring that efficient operations and maintenance are performed, dilapidated assets are refurbished, the necessary skills are provided, and by ensuring that funding is available. The following key steps are proposed: Clarify the current spatial development planning in the municipality by interrogating the IDP and other related plans (e.g. the Provincial Growth and Development Strategy, the municipality s Local Economic Development Plan, etc) and compile a spatially based demographic model at the level of communities or StatsSAs sub-places. Unpack the current sector development plans, confirm the service delivery backlogs of communities, and assess the condition of the existing assets. Use this as the basis for confirming (and/or expanding) current lists of projects that would be required to provide the necessary services to all communities. Compile capital and operating budgets for these interventions. Assess the current institutional arrangements in the municipality, addressing the processes, procedures, and service level agreements (e.g. for bulk supplies and key services, where applicable). Assess the current staffing in the municipality, and identify vacancies that would impact upon the ability to deliver services or implement the capital projects. Develop a financing and funding model using the above inputs regarding lacking infrastructure assets, state of dilapidation, extent of services currently being provided and to be provided in future, as well as the number of indigents in the municipality. Use the MSFM as planning tool to assess the budget levels that would be required to provide the services Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

46 INTERNALLY REQUIRED PLAN/PROGRAMMES/STRATEGIES in the long term, as well as the revenue limitations that might impact on the ability to afford these services. Develop pro forma income statements and balance sheets that would reflect the ability of the municipality to afford the planned investments. Identify opportunities for improving revenue and reduce losses, and identify actions towards balancing the income and expenditure budgets. Identify potential external funding and financing sources. Finally, develop an intervention plan for addressing the shortfalls identified in the above process, which should be accommodated into the next update of the municipality s IDP. This should ideally address the following areas: Project implementation lists Loss reduction plans to address technical, operational and financial losses related to service delivery in water and electricity Institutional capacity and staff development plans Revenue improvement plans Outsourcing plans (where necessary to support service delivery in the short to medium term). These plans will be developed by the municipalities (in collaboration with service providers), who will be supported by the different sector departments. The necessary linkages with bulk providers need to be identified, while all available funding sources will be explored and developed. More importantly, it needs to transform the current focus in service delivery from a project based approach to a programmatic approach that addresses long term sustainability, and that links different sectors towards a focused solution at municipal level. GURP Business Plan The present GURP Business Plan is due for revision, and funding is presently being sourced for a review of the GURP Business Plan. This review is necessary in light of the Profiling that was done on all the Urban Nodes, and to bring it in line with the outcomes of this exercise. 44 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

47 6. The Multi-Year Municipal Performance Management Plan (Institutional Scorecard) 2008/ /2012 The foregoing analysis informs the key strategic issues the Municipality needs to address in the next MTREF cycle as well as its SDBIP for the 2008/2009 financial year. These key priority issues are captured in the Municipality s Multiyear Performance Plan (Institutional Scorecard) as quantifiable strategic objectives within each Key Performance Area. Linking the IDP Strategic Objectives to Implementation and Budget through the Municipality s Multi-year Performance Plan (Institutional Scorecard) IDP ORGANISATIONAL PMS STRATEGIC ISSUES IDP OBJECTIVES MUNICIPALITY S MULTI-YEAR PERFORMANCE PLAN (INSTITUTIONAL SCORECARD) TARGETS Organisational SDBIP (MM s SDBIP to be published) Budget Capital and Operational Directorate SDBIP Objectives, Targets (Informed by IDP) Projects/Operations (Budget) (Operational document to be worked on during the year) Section 57 Manager s PA s The implementers The Municipality s Multi-year Performance Plan (Institutional Scorecard) was revised in light of the strategic scan conducted in March 2008, the review of the KPAs and IDP Objectives as well as the Mid-year Budget and Service Delivery Performance Report outlined above. The revised Municipality s Multi-year Performance Plan (Institutional Scorecard) is as per Annexure 3, page 85) Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

48 7. Stakeholder Comments The draft IDP was advertised on 14 April 2008 for public comment. The closing date for comments was 12 May Apart from the comments received during the public hearings indicated in (see Section 1) stakeholder comments came mainly from the Engagement Event organised by the National Department of Provincial and Local Government (DPLG) which was also attended by provincial sector departments co-ordinated by the Department of Housing and Local Government on 5 May The purpose of this event was to assess municipalities draft IDPs against the Evaluation Framework developed by DPLG. This framework is intended to serve as a tool to guide the crafting, design, improvement and assessment of a credible IDP. Core criteria to demonstrate municipal strategy, vision and compliance with both legislative and policy intent have been crafted to assist the assessors during the analysis process. This Framework is not intended to serve the purpose of a performance measurement tool, but rather a reference tool, or guideline, towards establishing the quality of a credible IDP. The Key Focal Areas are: Spatial Development Framework Service Delivery Sustainable Economic Growth and Development and LED Financial Viability Institutional Arrangements Governance and Organisational Development The final Assessment Report for Sol Plaatje had not been received by the time this document was finalised; however, the following comments were made by the different Provincial Sector Departments during the Engagement Event: Provincial Treasury The Department mainly commented on the poor Auditor General s opinion received as well as what plans are being put in place to increase revenue in order to fund own capital funding to decrease the dependence on grant funding. These issues are being addressed as part of the review of KPA 3: Municipal Financial Viability and Management and KPA 6: Good Governance and Public Participation. (See Section 4.) Department of Environmental Affairs and Tourism DEAT specifically enquired about the progress with regard to the development of an Integrated Environmental Management Plan and an Integrated Waste Management Plan which are legal requirements. The Department also again reiterated that they can assist the Municipality both technically and financially. The plans mentioned above specifically tie in with the work being done by the Sustainable Energy and Climate Change Unit (SECCU) - refer to IDP 2007/ /2012, p49. It should also be stressed that these issues also link with KPA 4: Municipal Institutional Development and Transformation. At present the organisational structure of the Municipality (apart from SECCU) does not make provision for dealing with environmental issues, which will be addressed in the completion of the micro-organisational design of the Organisation. The design and population of the organisational structure has been taken up in the Institutional Scorecard as part of KPA 4. Department of Minerals and Energy DME emphasised the importance of the Municipality s involvement in the Social and Labour Plans (SLP) of De Beers and Petra Mines, but specifically that of De Beers. This process is ongoing and the Municipality both from the Directorate: Infrastructure and Services and Strategy, Economic Development and Planning (LED) was and still is represented in various meetings between DME dealing with these Social and Labour Plans and, once completed and approved, will be incorporated in the IDP Review. DME also enquired as to the Sol Plaatje Municipality s Energy Savings Plan due to the present energy crisis. This issue is being addressed under KPA 2: Basic and Sustainable Service Delivery, and is taken up in the Municipality s Multi-year Performance Plan (Institutional Scorecard). This is also a combined effort from SECCU and the Sub-directorate Electricity. Department Sport, Arts and Culture The Department commented on the Sol Plaatje Municipality s involvement in the 2010 Soccer World Cup tournament. A Technical Steering Committee exists on Provincial level of which Sol Plaatje is one of the stakeholders. Kimberley is not a host city, but will in all probability be the base of a team. Sol Plaatje has been linked with Mangaung, and a MOU exists between the two municipalities. Two of the key issues that have to be addressed, according to the MOU, are accommodation and transport. Should a team/teams set up base in Kimberley a huge influx of people can be expected with accompanying shortage of accommodation, and probable public transport. The following, with the view to 2010, should therefore be prioritised: 46 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

49 Accommodation in the form of camping grounds; In Germany people camped in open parks etc. Upgrading of Riverton, Langleg and Rekaofella. Preparation of a temporary camping area with amenities (perhaps at the showgrounds). Public amenities in the town; decent public amenities with shower facilities must be provided. To be properly secured and maintained. Should 20,000 to 40,000 persons arrive in Kimberley, there would be a huge strain on the water, sewerage and electrical infrastructure. Existing facilities are already over capacity. Homevale and Beaconsfield sewerage facilities need to be upgraded URGENTLY. The electrical network is at its limit and most substations need upgrading. Gogga Pumpstation has to be extended. It was designed for a lifespan of twenty years, and was built in The opportunity exists to market Kimberley for tourism and as a service centre to the international community. (Big companies such as Nike, Adidas etc are setting up distribution networks in SA at the moment.) Facilities such as the Galeshewe stadium need to be upgraded so that it can be used as a practice venue. These are some of the issues raised by officials directly involved in the 2010 Technical Steering Committee. A much bigger and integrated process is necessary from the Municipality s side to gain maximum benefit from this event, but also to make it a good experience for visitors to the City especially considering the fact that there are only 760 days left to the 2010 Soccer World Cup event. Department of Water Affairs The Department specifically enquired what is being done with VIP/buckets sanitation systems still remaining. This has been addressed in KPA 2: Basic and Sustainable Service Delivery, and is included in the Municipality s Multi-year Performance Plan (Institutional Scorecard). Mention was also made in terms of Operations and Maintenance plans and keeping of a legally compliant asset register. This has been addressed in KPA 3: Infrastructure Development. Refer also to Section 5.4. An asset management system is an integral part of an Operations and Maintenance plan which is in progress, and an Asset Management Unit has been created in the Directorate Financial Services. The new Financial System will also include an Asset Management module. These issues were also taken up in the Municipality s Multi-year Performance Plan (Institutional Scorecard). Department of Land Affairs The Department enquired around the problems with regard to the N12 in the City where it was closed due to the possible caving in of the Big Hole and the negative effect it has on the CBD. This aspect is being addressed at present with the study on the realignment of the N12 through the City, and is also being addressed in the Integrated Transport Plan which is an integral part of the IDP. Department of Safety and Liaison The Department stated that it is clear that community safety is not one of the main priority areas listed in the IDP. According to the Department community safety is very broad and includes issues such as crime prevention, disaster management, road safety, occupational health and safety, moral regeneration, local drug action committees, corruption etc. Development within an unsafe environment is not always possible. To assist and guide municipalities to address community safety effectively the Department developed a Provincial Policy Framework on Integrated Local Crime Prevention. The framework provides for municipalities to co-ordinate community safety at local level, and also provides guidance in relation to social crime prevention programmes. Provincial sector departments and crime prevention stakeholders will be responsible for the implementation of programmes and projects. In this regard the municipalities are urged to establish or utilise existing forums for co-ordinated action on all crime prevention and community safety programmes and projects. The Department also referred municipalities to the National Drug Master Plan that makes provision for Local Drug Action Committees, as well as the ongoing process to compile a Provincial Community Safety Plan. Information will be forwarded to the relevant administrative and political structures within the Municipality who will attend to these issues as a priority. Department of Housing and Local Government The Department requested more information on the following issues: What projects are planned for the funding being provided through the Neighbourhood Partnership Development Grant (NPDG). This information will only be available once the respective business plans have been completed and approved by Council. What is being done to reduce debtors? This is being addressed under KPA 3: Municipal Financial Viability and Management which was also mentioned above. The development of the IDP Housing Chapter is also Important which was alluded to during the Engagement Session. This issue has also been addressed in reviewing the KPAs and Strategic Objectives, and is included in the Municipality s Multi-year Performance Plan (Institutional Scorecard). Refer to Section 4 and KPA 3: Infrastructure Development. Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

50 8. Implementation through the Service Delivery and Budget Implementation Plan The SDBIP gives effect to the IDP and Budget of the Municipality. The quantifiable strategic objectives within each Key Performance Area for the 2008/2009 financial year in the Municipality s Multi-year Performance Plan (Institutional Scorecard), informs the SDBIP for the 2008/2009 financial year, and breaks it into quarterly targets. The Budget should give effect to the strategic priorities of the Municipality through the allocation of financial resources. The Budget is not a management or implementation plan. The SDBIP therefore serves as a contract between the administration, Council and the communities expressing the strategic objectives (within each KPA) set by Council as quantifiable outputs that can be implemented by the administration in a specific financial year in this case 2008/2009. This provides the basis for measuring performance in service delivery against end-of-year targets and implementing the budget. The SDBIP is a layered plan with the top layer dealing with consolidated service delivery targets (refer to Municipality s Multi-year Performance Plan (Institutional Scorecard) Annexure 3) and in-year deadlines, linking such targets to top management. Once the top-layer targets are set, the top management must then develop the next (lower) layer of detail of the SDBIP, by providing more detail on each output for which they are responsible, and breaking up such outputs into smaller outputs, and linking these to each middle-level and junior manager. These outputs should also include per ward information, especially key expenditure items on capital projects and service delivery. 8.1 The 2008/2009 Implementation Plan It was extremely difficult for the 2008/2009 Budget to channel enough resources towards the key strategic issues outlined above. The main reasons for this are: SPM has very little own discretionary funding available to address these issues. The operational budget has very little manoeuvrable space available to address key issues such as increasing competency levels, recruit and maintain skilled and competent officials, create capacity in service delivery line functions, and to ensure effective and efficient management systems. Contributions for discretionary capital funding is also lacking to address issues such as the creation of productive new infrastructure for development and replacement and upgrading existing and ageing/failing infrastructure. The Capital Programme specifically for the 2008/2009 financial year is, therefore, unable to substantially address the strategic agenda of the Municipality especially in providing an equitable share of development across all deprived areas within the Municipality. Annexure 4 (page 93) is a schedule of projects that could address a substantial portion of the key priority issues for which funding is not available at this stage. Council has, however, shown its commitment in improving this situation by embarking on a loan to address infrastructure replacements and upgrades. Annexure 5 (page 97) indicates the priorities submitted by the various wards. Due to the financial constraints mentioned it is also impossible to address the needs submitted by communities. In order to address some of those needs an amount of R has been allocated to those wards that have not seen any capital investment for the past two to three financial years. Nine wards have been assisted in this manner. The fact that the Municipality has little capacity for own funding results in it being dependent, to a large extent, on conditional grant funding that mainly addresses backlogs in service delivery which do not contribute to economic development. Current payment levels are resulting in a significant amount of income being reserved for bad debt provision. This situation will have a definite effect on the amount to be made available for service delivery and development for the 2008/2009 to 2010/2011 financial years. It is therefore imperative that measures be put into place to increase current payment to between 80 and 90% as a short to medium term target. 8.2 Capital Programme The Capital Programme for the 2008/2009 financial year and indicative budgets for the two outer years is as per Annexure 5, (page 97) adapted by council on 28 May Operational Budget A summary of the Operational Budget is as per Annexure 6, (page 107). In order to fund the Operational Budget the municipal tariffs will increase on average by 12,08%. Table 48 indi- 48 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

51 cates the tariff increases for the 2008/2009 financial year in comparison with the three previous financial years. As can be seen from the Table the tariff for water and electricity is exceptionally high. The electricity tariff increase is due to the sharp increase in Eskom s tariffs. The abnormal increase in the water tariff, compared to previous years, is to fund improved maintenance on the Municipality s water network to curtail the high water losses experienced at present. The present inflation rate also contributed substantially to the present tariff increases. TABLE 48 Municipal tariffs 2005/ /2009 Category 2005/ / / /2009 Rates and General 7,98% 6,03% 6.00% 8,50% Sewerage 4,00% 5,61% 6.00% 7,54% Cleansing 4,00% 5,81% 6.00% 9,53% Water 6,90% 6,01% 6.00% 18,96% Electricity 4,30% 5,78% 5,60% 12,00% Average 5.88% 6,03% 5,84% 12,08% Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

52 9. Important Documents Supporting the IDP The following documents are available on the SPM website ( and are mentioned here due to its relevance to the normal functioning of the Municipality and inter-relationship with the IDP: Adopted Policies Credit Control and Debt Collection Indigent Asset Management Supply Chain Management Risk Management Tariff Internal Audit Audit Committee Recruitment and Selection Standby Allowance Sexual Harassment Cash Management and Investment Property Rates Draft Policies Information Security Internet and Policy: Computer Viruses Spyware and Adware Access Codes and Passwords Physical Security Business Continuity /Disaster Recovery Note-Book Policy Environmental Fraud and Anti-Corruption HIV/Aids Policy Resolutions Policy Directives Unauthorised/irregular/fruitless/wasteful expenditure Impending shortfalls, Over-Expenditure and Overdrafts Expenditure Beyond Budget Year Financial Disputes with other Organs of State Financial Misconduct Forbidden Activities Failure to Approve Budget before start of Budget Year Register: Delegation of Powers Promulgated By-laws Advertising Signs Aerial Systems Animals, Poultry and Bee Control Building Control Caravan Park Cemeteries Electricity Fire Brigade Keeping of Dogs Control Fireworks Law Enforcement Standing Orders Street Trading Control Swimming Pools Taxi Ranks Water Supply Draft By-laws for public comment Property Rates By-law Other Supporting Documents 1. White Paper on Local Government 2. Municipal Systems Act, Municipal Planning and Performance Management Regulations 4. Municipal Finance Management Act (MFMA) 5. National Spatial Development Perspective (NSDP) 6. Northern Cape Provincial Growth and Development Strategy (NCPGDS) 7. Accelerated and Shared Growth Initiative of South Africa (Asgi-SA) 8. Intergovernmental Relations Framework Act 9. City Development Strategy (CDS) 10. Central Business District Spatial Framework (CBD) 11. Economic Profile of Galeshewe Urban Renewal Node Sol Plaatje Municipality: Spatial Development Framework 13. The Galeshewe Urban Renewal Programme Business Plan 14. Sol Plaatje Municipality: LED Strategy 15. Sol Plaatje Municipality: Service Delivery Policy Framework 16. Sol Plaatje Municipality: Integrated Transport Plan 17. Sol Plaatje Municipality: Poverty Alleviation Strategy 18. Sol Plaatje Municipality: Restructuring Grant Application Annual Reports, 2003/2004, 2004/2005, 2005/ Service Delivery and Budget Implementation Plan 2007/ Budget 2007/ Workplace Skills Plan 2007/ Employment Equity Plan 24. Poverty Alleviation Strategy Sol Plaatje Municipality: Potential Environmental Impacts and Strategies Sol Plaatje Municipality: Spatial Development Framework Reviewed May Draft Economic, Socio-economic and demographic Status Quo of Sol Plaatje Local Municipality April Frances Baard Growth and Development Strategy December Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

53 ANNEXURE 1 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

54 52 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

55 PROCESS PLAN IDP REVIEW 1. Introduction The Municipal System Act (Act 32 of 2000), Section 25, compels Municipal Councils to adopt a single, inclusive and strategic plan for the development of the Municipality, called an Integrated Development Plan (IDP). The IDP needs to: link, integrate and co-ordinate plans, and take into account proposals for the development of the Municipality, align the resources and capacity of the Municipality with the implementation of the plan, form the policy framework and general basis on which annual budgets must be based, be compatible with national and provincial development plans and planning requirements binding on the Municipality in terms of legislation. The detail of an IDP is prescribed in Chapter 2 of the Municipal Planning and Performance Regulations (R796 of 24 August 2001) and states as follows: (1) A municipality s integrated development plan must at least identify (a) the institutional framework, which must include an organogram, required for: (i) the implementation of the integrated development plan; and (ii) addressing the municipality s internal transformation needs, as informed by the strategies and programmes set out in the integrated development plan; (b) any investment initiatives in the municipality; (c) any development initiatives in the municipality, including infrastructure, physical, social, economic and institutional development (d) all known projects, plans, and programmes to be implemented within the municipality by any organ of state; and (e) the key performance indicators set by the municipality. (2) An integrated development plan may: (a) have attached to it maps, statistics and other appropriate documents; or (b) refer to maps, statistics and other appropriate documents that are not attached, provided they are open for public inspection at the offices of the municipality in question. (3) A financial plan reflected in a municipality s integrated development plan must at least: (a) include the budget projection required by section 26 (h) of the Act (b) indicate the financial resources that are available for capital project developments and operational expenditure; and (c) include a financial strategy that defines sound financial management and expenditure control, as well as ways and means of increasing revenues and external funding for the municipality and its development priorities and objectives, which strategy will address the following: (i) revenue raising strategies; (ii) asset management strategies; (iii) financial management strategies; (iv) capital financing strategies; (v) operational financing strategies; and (vi) strategies that would enhance cost-effectiveness. (4) A spatial development framework reflected in a municipality s integrated development plan must: (a) give effect to the principles contained in Chapter 1 of the Development Facilitation Act 1995 (Act No. 67 of 1995); (b) set out objectives that reflect the desired spatial form of the municipality; (c) contain strategies and policies regarding the manner in which to achieve the objectives referred to in paragraph (b), which strategies and policies must: (i) indicate desired patterns of land use within the municipality; (ii) address the spatial reconstruction of the municipality; and (iii) provide strategic guidance in respect of the location and nature of development within the municipality. (d) set out basic guidelines for a land use management system in the municipality; (e) set out a capital investment framework for the municipality s development programs; (f) contain a strategic assessment of the environmental impact of the spatial development framework; Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

56 (h) identify programmes and projects for the development of land within the municipality; (i) (j) be aligned with the spatial development frameworks reflected in the integrated development plans of neighbouring municipalities; and provide a visual representation of the desired spatial form of the municipality, which representation: (i) must indicate where public and private land development and infrastructure investment should take place; (ii) must indicate desired or undesired utilisation of space in a particular area; (iii) may delineate the urban edge; (iv) must identify areas where strategic intervention is required; and (v) must indicate areas where priority spending is required. Section 28 (1) of the Municipal Systems Act further compels a Municipal Council to adopt a process set out in writing to guide the planning, drafting, adoption and review of its integrated development plan the Process Plan. The preparation process or drafting of the Process Plan is the responsibility of Municipal Management, and needs to include the following issues according to Section 29(1) of the Act: Roles and responsibilities of the different role-players in the IDP process have to be clarified in advance, and internal human resources have to be allocated accordingly. Organisational arrangements have to be established and decisions on the membership of teams, committees or forums have to be made. A programme needs to be worked out which sets out the envisaged planning activities, a time frame and the resource requirements for the IDP process. Such a detailed programme of the planning process is crucial to keep track of the process and to interact with the different role-players (especially between local and district municipalities). Special attention has to be paid to the mechanisms and procedures for community and stakeholder participation during the planning process. This must also be in line with the provisions of Chapter 4 of the Municipal Systems Act (Act 32 of 2000). Mechanisms and procedures for alignment with external stakeholders such as other municipalities, District Municipality and other spheres of government also need special attention. These alignment activities have to be decided on a mutual binding basis, through a joint Framework for the interactive planning process which requires preparation well in advance. The identification of all binding plans and planning requirements binding on the Municipality in terms of national and provincial legislation. A cost estimate for the whole planning process. Since the promulgation of the Municipal Financial Management Act (Act 56 of 2003) it is vital to align the IDP Process (S28 of MSA) with the Performance Management Process (Municipal Planning and Performance Management Regulations (Ch3, 2(g)) and the Budgeting Process (S 21, 22 and 23 of MFMA). See figure Organisational Arrangements and Roles and Responsibilities of the Different Structures and Role-players The organisational structure depicted in Figure 1 is being created to manage and co-ordinate the IDP process and to: institutionalise the participation process, effectively manage the drafting process, and give affected parties access to contribute to the decision-making process. This institutional arrangement needs to be a permanent structure to ensure the proper implementation of the IDP, as well as to co-ordinate and monitor the implementation process. The distribution of the roles and responsibilities for the different role-players in the IDP process has to be guided by democratic principles on the one hand, and by the guideline of aiming at an integrated system of planning and delivery on the other. 3. Roles and Responsibilities of the Different Structures and Role-players depicted in Figure Municipal Council The new democracy in South Africa represents a synthesis between the system of a representative democracy, where elected bodies such as councils have to decide or to finally approve decisions, and a corporatist, negotiating type of democracy, where decisions are arrived at through public discussion and processes of negotiation. For the IDP process, this understanding of democracy means that: the process is not just a planning process within municipal government, but a forum for discussions and negotiations of various municipal stakeholders, and the final decision and the accountability is with the Municipal Council as the elected body answerable to the public on the utilisation of public resources. The Council s roles and responsibilities are therefore to: Consider and adopt a Process Plan. Consider, adopt and approve the IDP. Ward Councillors have the responsibility to link the IDP process to their constituencies/wards, especially with regard to ensuring that annual business plans and the municipal budget reflect the key development priorities of their constituencies, and that it is based on the IDP. They need therefore to be actively involved in the public participation process. 54 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

57 3.2 Mayoral Committee As the senior governing body of the Municipality they have to: Decide on the Process Plan. Approve the nominated persons to be in charge of the different roles, activities and responsibilities of both the IDP process and drafting of the IDP documents. Be responsible for the monitoring of the IDP process and ensuring that all relevant role-players are involved. The Mayoral Committee in conjunction with the Executive Management Team need to ensure the establishment of an integrated system of planning and delivery (or planning and implementation management) which requires involvement of all those in charge of municipal management in the IDP process. The process has to be managed by an official from within the Municipality, acting on behalf of the Municipal Manager, who has been assigned the powers to get all relevant actors from within the Municipality on board, and the Mayoral Committee in conjunction with the Executive Management Team therefore act as the strategic driver of the IDP process. This implies that they should: Provide the terms of reference for the various activities. Commission research studies. Consider and comment on inputs from: - sub-committees, study teams and service providers - provincial sector departments and service providers. Make recommendations to Council on the IDP process and content. Be involved in the public participation process on both political and technical issues. The IDP Unit is responsible for the management and coordination of the IDP process on behalf of the Municipal Manager and provides the necessary technical input to the IDP Steering Committee, which include the following: Preparation of the draft Process Plan in consultation with senior management. Day-to-day management of the planning process, ensuring; - involvement of all different role-players, especially officials - that time frames are being adhered to - that the IDP process is horizontally and vertically aligned, and complies with national and provincial requirements - that conditions for participation are provided, and - that outcomes are properly documented. Management of service providers/consultants in close co-operation with the members of the Technical IDP Working Teams. Provide a secretariat function for IDP Steering Committee. The Project Managers Cluster (and by implication all line managers) are inter-departmental and cross-sectoral technical working teams of dedicated senior officials nominated by Directors who need to provide the technical sectoral and issue-based input into the IDP, and who support the IDP Manager and ensure a smooth planning process by being fully involved in the IDP Process. The role and responsibilities of the members of the Project Managers Cluster include the following: Perform various planning activities according to their line function within the Municipality in co-operation with other officials or support providers, and in line with the Municipal Systems Act (Act 32 of 2000), other relevant national and provincial sector legislation as well as the IDP Guide Pack. Process, summarise and document the specific outputs relevant to their specific task. Make content recommendations to the IDP Steering Committee during the different phases of the IDP process. Be involved in the public participation process with regard to their specific sector or issue-based expertise. Provide the relevant technical, sector and financial analysis for determining the priority issues. Contribute technical expertise in the consideration and finalisation of strategies and identification of projects. Provide departmental operational and capital budgetary information. Responsible for the preparation of project proposals, the integration of projects as well as sector and issuebased programmes. Act as counterparts to service providers/consultants. Service providers will be consulted/contracted for tasks for which internal capacities/expertise (professional and/ or human resources) are not available, and they could be engaged for: providing methodological/technical guidance to the IDP process/products, facilitating of planning workshops, facilitating the public participation processes or parts thereof, documentation of outcomes of planning activities, special studies or other product related contributions, support to organised and/or other unorganised groups and communities to more effectively engage in and contribute to the planning process. Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

58 Programme/Project Planning Teams are ad-hoc intersectoral operational teams, headed by a dedicated programme/project manager, responsible for the detail planning and design of programmes and projects emanating from the IDP. These teams will also have the responsibility to manage the implementation of programmes and projects. These teams also include other relevant stakeholders involved in programme/project planning and implementation. 4. Mechanisms and Procedures for Public Participation The legal requirements of Chapter 4 of the Municipal Systems Act (Act 32 of 2000) need to be complied with at all times when implementing the Public Participation Strategy. 4.1 Principles for Public Participation The principles underlining the Public Participation Strategy are the following: Elected councils are the ultimate decision-making body on IDPs. Public participation has to be institutionalised to ensure an equal right to participate. Public participation needs to be structured as it is impossible due to population size and area to allow for direct participation in a complex process such as the IDP. Clear rules and procedures are therefore necessary specifying who is to participate or be consulted, on behalf of whom, on which issue, through which organisational mechanism, with what effect. The Public Participation Strategy must provide sufficient room for diversity, including different cultures, gender, language, education levels, etc. Public Participation needs to be promoted both through creating conditions for public participation and by encouraging participation, especially with regard to disadvantaged and marginalised groups and gender equity. Public participation is a specialised field of expertise and should not be conducted just for the sake of public participation. 4.2 Functions of Public Participation In the context of the IDP Public Participation has four main functions: Needs orientation. Ensuring that people s needs and problems are taken into account. Appropriateness of solutions: Using the knowledge and experience of local residents and communities in order to arrive at appropriate and sustainable problem solutions and measures. Community ownership: Mobilising local residents and communities initiatives and resources, and encouraging co-operation and partnerships between municipal government and residents for implementation and maintenance. Empowerment: Making IDP a public event and a forum for negotiating conflicting interest, finding compromises and common ground and, thereby, creating the basis for increased transparency and accountability of local government towards local residents. 4.3 The Public Participation Strategy Public Participation Structures The formal structures for Public Participation are also depicted in Fig.1 namely The IDP Representative Forum and IDP Business Forum. These Fora are the formal link between the municipal government and the public. The public is represented by councillors, key community and stakeholder groupings, the business community and representatives of legally elected ward committees. The IDP Business Forum is not a separate forum but rather a subforum of the IDP Representative Forum. This is done for practical reasons as experience has indicated that it is difficult to deal with strategic business and economic issues in the larger forum. All issues discussed in the IDP Business Forum are fed back to the IDP Representative Forum for consideration and inclusion in the IDP process. The Business Forum is also bound by the rules and procedures of the IDP Representative Forum. The main Terms of Reference for members of the IDP Representative Forum are: To represent the interest of their constituents in the IDP process. To provide an organisational mechanism for discussion, negotiation and decision making between all the stakeholders, including provincial and municipal government. To ensure communication between all stakeholders including provincial and municipal government. To monitor the performance of the IDP process, both planning and implementation. Contribute knowledge and ideas in the IDP process by participating in the IDP Representative Forum to: inform interest groups, communities and organisations on relevant planning activities and their outcomes; analyse issues, determining priorities, negotiate and reach consensus; participate in the designing of project proposals and/or assess them; discuss and comment on the draft IDP; ensure that annual business plans and budgets are based on and linked to the IDP; and monitor performance in the implementation of the IDP. Conducting meetings or workshops with their constituents to: prepare for participation in the IDP Representative Forum; and report back to their constituents and to followup on relevant planning activities. 56 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

59 (Resource persons refer to officials, service providers/ consultants who could be involved in discussions/negotiations or act as facilitators in the IDP Representative Forum.) The Process to establish the IDP Representative Forum All interested and affected parties need to be invited to submit names for participation in the IDP Representative Forum. These invitations should be preceded by an information campaign informing communities and stakeholders on the IDP process as well as the importance of their participation, actively encouraging them to participate. Once the names have been submitted they need to be scrutinised by the IDP Steering Committee and submitted to Council for approval. A database needs to be kept of those stakeholders groupings that will not necessarily participate as members of the IDP Representative Forum but that need to be consulted at various stages of the process. Once the names of the members of the IDP Representative Forum have been approved by Council a first meeting needs to be called to establish the Code of Conduct which should include issues such as: meeting schedules (frequency) and procedures, time of meetings and venue; agenda, facilitation and documentation of meetings; clearing of roles and responsibilities of members; means of eliciting and collecting community needs (including documentation of participation inputs) decision making processes and resolution of disputes; and language to be used. Participation Mechanisms in Planning Phases The following public participation mechanisms should be applicable in the different phases of the IDP process, with specific reference to the involvement of the IDP Representative Forum. Planning Phase Participation Mechanism Community meetings with direct involvement of Ward Committees and organised by Ward Councillors Stakeholder meetings Analysis Surveys, opinion polls etc Intensive communication/information flow to communities informing them of their role and responsibilities in the IDP ProcessWorkshop with IDP Representative Forum on Key Priority Areas HIGH INTENSITY OF PUBLIC PARTICIPATION District level strategy workshops with representatives of all municipalities in the district, national and provincial sector departments and selected representation of stakeholder organisations and resource persons. Strategies Workshop with IDP Representative Forum on specific local strategies. Information flow through press conferences, public hearings etc to stimulate public debate. Project Planning a Project with municipality wide scale b Localised community level projects a b LOW INTENSITY OF DIRECT PUBLIC PARTICIPATION Inter-sectoral Project Teams with selected representatives of stakeholder groupings and resource persons and IDP Representative Forum LOW INTENSITY OF DIRECT PUBLIC PARTICIPATION Intensive dialogue between Project Teams and affected communities (Ward Communities and Councillors) HIGH INTENSITY OF DIRECT PARTICIPATION Integration Approval IDP Representative Forum LOW INTENSITY OF DIRECT PUBLIC PARTICIPATION IDP Representative Forum Broad public discussion/consultation Opportunity for comments from residents and stakeholder HIGH INTENSITY OF PUBLIC PARTICIPATION Monitoring and Implementation IDP Representative Forum Ward Committees LOW INTENSITY OF DIRECT PUBLIC PARTICIPATION Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

60 5. Mechanisms and Procedures for Alignment Alignment is: A process entailing structured and systematic dialogue within government with a view to bring about co-ordinated and integrated action among the spheres of government and between the spheres and other organs of state to achieve common objectives and maximum development impact. Alignment is now regulated by the Intergovernmental Relations Framework Act, (Act No. 13 of 2005) (IGR Act) and makes provision for various IGR Structures including a District IGR Forum. This forum will consist of representatives of all three spheres of government represented in the District with both a political and technical component. The political component will be chaired by the Executive Mayor of the District Municipality and the technical component by the Municipal Manager. This forum will be the principal forum for aligning the IDP process with that of the provincial sector department plans as well as the District and Local Municipalities. The purpose of the District IGR Forum is: Efficient co-ordination of and problem solving through the following processes in the District: Alignment between District IDP content and Provincial Growth and Development Strategy Integrating District Municipality priorities with Provincial Prioritised Budgets Aligning Local IDPs and Provincial Sector Department Plans Application of Provincial spatial development framework into detailed District Spatial development plans Sector Department support Action Plans from the Hearings Identifying and sharing of strategic information between provincial sector departments and municipalities Increasing awareness and commitment of all spheres of Government to co-operation around the primary planning processes Cross sector departmental planning within the District. Although the IDP process is a local process it needs input and support from other spheres of government. Two main reasons for alignment exist between: Local municipalities, and district municipalities to ensure that their planning processes and issues are coordinated and addressed jointly. Municipalities and national and provincial sector Departments as well as corporative service providers (e.g. Eskom, Telkom) to ensure that the IDP is in line with national and provincial policies and strategies in order that it is considered for the allocation of departmental budgets and conditional grants. Section 27 of the MSA compels district municipalities to adopt a framework for integrated development planning in their areas after following a consultative process with local municipalities. Section 29 makes provision for the drafting of a Process Plan by both district and local municipalities that must be aligned (S27 (2) (c) and (3) (b) as well as the Framework adopted in terms of S National and Provincial Binding Legislation and Planning Requirements A joint list of national and provincial legislation as well as policies, programmes, strategies and available funds need to be included in the Process Plan to ensure that it is considered in the Municipality s IDP. Local municipalities need to be informed of the above at the District IGR Forum including the category of requirement, namely: Legal requirement for a municipal level plan; Legal requirement as part of the IDP; Compliance with a normative framework; Only for a value added contribution. Below is a provisional list of national and provincial legislation impacting on the IDP: National Legislation The Constitution of the Republic of South Africa 1996 Municipal System Act, Act No. 32 of 2000 Municipal Structures Act, Act No. 117 of 1998 Municipal Demarcation Act, Act No. 27 of 1998 National Environmental Management Act (NEMA), Act No. 107 of 1998 Development Facilitation Act, Act No. 67 of 1995 National Land Transport Transition Act, Act No. 22 of 2000 Municipal Planning and Performance Management Regulations 2001 Municipal Finance Management Act, Act 56 of 2003 The National Housing Act, Act 107 of 1997 Social Housing Bill, B29 of 2007 Municipal Property Rates Act, Act 6 of 2004 Disaster Management Act, Act 57 of 2002 Water Services Act, Act 108 of 1997 Public Finance Management Act, Act 1 of 1999 Intergovernmental Relations Framework Act, Act No. 13 of 2005 Development Facilitation Act 1995, Act No.67 of Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

61 White Paper These include, but are not limited to the following: White Paper on Local Government 1998 White Paper on Spatial Planning and Land Use Management White Paper on Disaster Management Housing White Paper White Paper on Waste Management Furthermore, there are other government policies and guidelines such as: National Spatial Development Perspective (NSDP) Accelerated and Shared Growth Initiative South Africa (AsgiSA) Provincial Legislation And Policies At the Provincial level the following legislation and policies provides the framework for Integrated Development Planning: The Northern Cape Provincial Growth and Development Strategy (PGDS) The Northern Cape Planning and Development, Act No.6 of Action Programme with Time Frame and Budget The Action Plan indicated in the attachment highlights the milestones that need to be reached according to the prescriptions of the MSA and MFMA as well as the MSA and Regulations and directives from DPLG, Northern Cape DHLG as well as the Frances Baard District Municipality s Framework and Process Plan. A budget of R200,000 has been budgeted in the operational budget of the IDP Unit for outsourcing aspects mentioned previously where expertise and/or capacity are needed. A detailed costing of these aspects is not possible at this stage. Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

62 Figure 1 Organisational Arrangements COUNCIL Function: Final approval of Process and Products MAYORAL COMMITTEE Function: Strategic driver of the IDP and PMS as key strategic planning, management and monitoring tool of Municipality Members: Exec mayor, MC members DISTRICT IDP FORUM IDP REPRESENTATIVE FORUM MUNICIPAL MANAGER Executive management team IDP UNIT Function: To manage the IDP/OPMS process and provide technical support to EMT Staff: IDP Manager, Admin/Secretary Function: Continued involvement in input to planning process, programme and project prioritising, budgeting and IDP monitoring. Members: Representatives from key community stakeholder groupings and ward committees LINE MANAGEMENT Function: Inter-departmental Technical Input into the Planning Process Members: Functional/line managers and technical staff BUSINESS FORUM PROGRAMME/PROJECT PLANNING TEAMS Function: To design project plans linked to Strategic Objectives 60 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

63 Figure 2 TIME FRAMES FOR PREPARING THE 2007/ /2012 IDP and Budget Approved by Council on 30 August 2006 (Resolution C324) Planning Activity Approval of Process Plan Budget process Timetable PHASE 1 SITUATION ANALYSIS 1.1 Baseline data collection 1.2 Community and Stakeholder Analysis 1.3 Reconciliation 1.4 Municipal Analysis 1.5 Priority Issues Identification 1.6 Consolidation of analysis results PHASE 2: STRATEGIES 2.1 Vision & Strategic Objectives Formulation 2.2 Develop indicators and targets 2.3 Defining resource frames 2.4 Creating strategic alternatives 2.5 Provincial and district level strategies (alignment) Time (WEEKS) Aug Sep 06 Oct 06 Nov 06 Dec Jan 07 Feb 07 Mar 07 Apr 07 May 07 Jun Public participation to strategic issues, indicators and 2.7 Consolidation of strategic issues PHASE 3: PROJECTS 3.1 Identification of strategically linked projects 3.2 Identification of financial resources 3.3 Prioritisation of projects and design project proposals 3.4 Target group participation and sector department alignment 3.5 Detail project preparation for year 1 implementation PHASE 4: INTEGRATION 4.1 Draft operational strategy 4.2 First presentation of integration (IDP Steering Committee) 4.3 Second presentation (IDP Rep Forum) 4.4. Complete Draft IDP and submit to Council for consultation PHASE 5: APPROVAL 5.1 Advertise draft for comments 5.2 Final Public participation on draft IDP and Budget 5.3 Adoption by Council 5.4 Submit adopted IDP to MEC Aligned with Budget milestones according to MFMA December holiday period Time schedule budget process according to Budget Office Programme IDP Representative Forum Meetings Adjusted IDP Rep Forum Meetings Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

64 62 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

65 ANNEXURE 2 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

66 MID-YEAR BUDGET AND PERFORMANCE REPORT, JANUARY 2008 Introduction This report was compiled by the Budget Integration Cluster comprising of the PMU Unit, Budget Office and IDP Unit. The report was officially submitted to the Executive Mayor on 1 February 2008 in compliance with Section 72 (b) (i) of the Municipal Financial Management Act (Act 52 of 2003). This report is now submitted to National Treasury and the Northern Cape Provincial Treasury in compliance with sub-sub-sections (II) and (III) of the aforementioned Section of the MFMA. The Executive Mayor approved the Sol Plaatje Municipality s Service Delivery and Budget Implementation Plan (SDBIP) on 21 June The SDBIP was submitted to Council on 22 June 2007 for information. The top layer of the SDBIP was published in the Diamond Fields Advertiser on 17 August 2007 and in the Noordkaap on 22 August This report is structured as follows: Section A indicates the Municipality s annual budget and service delivery targets for the 2007/2008 financial year. The Budget (Revenue and Expenditure) is further broken down into monthly targets while the service delivery targets are broken down into quarterly targets. The Capital programme is also included. Section B indicates the mid-year performance achieved against these targets. 64 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

67 Medium Term Revenue and Expenditure Framework , 2008 and 2009 Budget Budget Budget Budget Budget Budget Budget Budget Budget SUPPORTING TABLE 9 July August September October November December January February March MONTHLY CASH FLOWS R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 Cash Operating Receipts by Source Property rates 8,798 6,058 6,057 36,203 6,057 6,057 6,057 6,057 6,057 Property rates - penalties imposed and collection charges Service charges - electricity 20,394 20,394 21,556 11,478 11,477 11,478 11,478 11,478 11,477 Service charges - water 6,181 6,181 6,181 6,181 6,181 6,181 6,181 6,181 6,181 Service charges - sanitation 2,708 2,703 2,708 2,708 2,708 2,708 2,703 2,708 2,708 Service charges - refuse 2,133 2,133 2,133 2,132 2,133 2,133 2,132 1,758 1,897 Service charges - other 1,262 1,262 1,262 1,262 1,262 1,262 1,262 1,262 1,262 Regional Service Levies - turnover Regional Service Levies - remuneration Rental of facilities and equipment Interest earned - external investments Interest earned - outstanding debtors Dividends received Fines Licenses and permits Income for agency services Grants - Operating (incl. grants from other municipalities) 0 21, , ,084 Grants - Capital (incl. grants from other municipalities) 11,919 6,520 4,053 5,520 4,620 9,038 11,920 8,920 4,792 Other revenue 1,046 1,046 1,046 1,040 1,052 1,052 1,040 1,040 1,046 Cash Operating Receipts by Source 57,019 69,959 47,573 69,101 59,152 42,488 45,350 41,982 59,081 Other Cash Receipts by Source Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

68 New Loans Raised ,000 12,000 13,000 0 Receipts from old outstanding debtors etc (list each source) Total Cash Receipts by Source ,000 12,000 13,000 0 Cash Operating Payments by Type Employee related costs 14,741 14,714 14,714 14,741 14,741 14,741 14,741 14,741 14,741 Employee related cost - social contributions 3,820 3,820 3,820 3,820 3,820 3,820 3,820 3,820 3,820 Remuneration of Councillors Collection costs Depreciation Repairs and maintenance 1,925 1,925 1,925 1,925 1,925 1,925 1,925 1,925 1,925 Interest paid Bulk purchases - Electricity 14,333 14,333 4,778 4,778 4,778 4,778 4,778 4,778 4,778 Bulk purchases - Water 2,889 2,889 2,889 2,889 2,889 2,889 2,889 2,889 2,889 Grants and subsidies paid Bank charges Legal fees Seminar/ Conferences Insurance 1, General Expenditure 9,000 9,000 9,000 9,000 9,500 9,500 9,500 10,000 9,500 Audit fees Cash Operating Payments by Type 50,066 48,557 39,569 39,596 40,096 39,529 39,529 40,029 39,529 Other Cash Payments by Type Capital Expenditure 7,919 12,520 5,053 16,520 18,620 12,544 17,929 15,169 15,792 Loans repaid 0 0 3, , ,800 Etc (list each source) Total Cash Payments by Type 7,919 12,520 8,853 16,520 18,620 13,744 17,929 15,169 19,592 NET INCREASE / (DECREASE) IN CASH & INVESTMENTS , , Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

69 Capital Programme 2007/2008 B A CRR/Counter C Total Budget Funding Grant Funding D Project Description (R) (R) (R) Funding Source Roads 29,008,619 5,405,000 23,603,619 MIG/DHLG/CF Stormwater 4,949,581 1,903,820 3,045,761 MIG/DHLG/CF Water and Sanitation 37,235,620 1,826,400 35,409,220 MIG/FBDM Electricity (include streetlights) 31,040, ,040,000 DME/LOAN/ESKOM GURP Projects 23,032, ,032,000 DHLG Housing 4,082, ,000 3,582,970 DHLG/SUBS Community Services 3,296, ,000 2,643,000 CRR/FBDM/PROV LED, CBD & Urban Planning Projects 8,214,380 2,935,780 5,278,600 DHLG/CF Information Technology 1,776,000 1,776,000 0 DSAC/DHLG/FBDM Transport 12,300, ,300,000 LOAN Other 904, ,000 MIG/CRR Total 155,839,170 15,000, ,839,170 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

70 Service delivery targets & indicators FOR 2007/2008, CATEGORISED ACCORDING TO IDP GOALS Key Performance Area IDP Goal Key Performance Measurement Performance target Baseline Indicator unit Quart 1 Quart 2 Quart 3 Quart 4 Annual To effectively monitor and manage the declining economy of Sol Plaatje by % economic growth/ decline, as measured in terms of the Economonitor. % growth New 0% 0% 0% 0% 0% Development Programme (LED) To maximise the number of jobs created through the municipality s local economic development initiatives, including capital projects by Number of permanent and temporary jobs created through initiatives of the SPLM. Number of jobs New To ensure that the municipality spent 60% of its procurement budget on goods and services provided by local BEE and SMME enterprises annually. % of procurement budget spend on procuring from local SMMEs and BEEs. % spent 60% 60% 60% 60% 60% 60% To provide 1,215 households in formal areas with a metered water connection by 2009/2010. Reduction in the number of households in formal areas without metered water connections. No. of households ,215 Basic & Sustainable Service Delivery To provide 840 households in formal settlements with basic sanitation by 2009/2010. To eradicate the bucket system in all pre-1994 formal areas by providing 684 households with sanitation by 2011/2012. Number of households in formal settlements provided with basic sanitation. Number of buckets in use in pre-1994 formal areas. No. of households No. of households To provide 8,400 households with a water connection in informal areas by 2011/2012. Number of households connected to water in informal areas. No. of households To reduce water losses to 15% by 2010/2011. % reduction in water losses. % reduction 30% 26,64% 23,28% 19,92% 16,56% 16,56% 68 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

71 Key Performance Area IDP Goal To provide 8,400 households with a sanitation service in informal areas by 2011/2012. To ensure that 50kms of roads are surfaced by To have a five-year Integrated Infrastructure and Assets Maintenance and Operations Plan by June 2008 Basic & Sustainable Service Delivery (Continued) To provide shelter for all by 2014 based on current demographic projections. To provide 7,686 households with electricity connections in the SPLM area by 2011/2012. To reduce electricity losses to 11% by 2010/2011. To provide 2,249 additional households with a weekly solid waste removal service by 2008/2009. Development a sustainable energy strategy by June 2008 and annual review thereof. Municipal Financial Viability & Management To increase the payment level to 87% by 2010/2011 for current billing. To spend at least 85% of the capital budget annually. Key Performance Measurement Performance target Baseline Indicator unit Quart 1 Quart 2 Quart 3 Quart 4 Annual Number of households provided with sanitation services in informal areas. No. of households Additional kms roads surfaced. Kms 257 2,5km 5km 7,5km 10km 10kms Availability of a five-year Integrated Infrastructure and Assets Maintenance and Operations Plan. Plan 0 25% 50% 75% 100% 100% Number of families provided with houses. No. of houses Number of households provided with electricity connections. No. of households % reduction in electricity losses. % reduction 14% 13,75% 13.50% 13,25% 13% 13% Number of additional households provided with waste removal services. No. of households ,347 1,796 1,796 Development and implementation of a sustainable energy strategy. A sustainable energy strategy 0 25% 50% 75% 100% 100% % payment level Payment levels 65% 66% 68% 70% 71% 71% % of the capital budget spend annually. % spend 70% 10% 38% 75% 85% 85% Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

72 Key Performance Area IDP Goal Maintenance of the debt coverage ratio at current levels or at least 2:1 against net assets of the municipality. Municipal Financial Viability & Management (Continued) Reduction of the ratio of outstanding service debtors to revenue to 4:5 by 2010/2011. Increase the cost coverage ratio to 1:1 annually or maintain the current status. To ensure that all levels of personnel on the organogram of the SPLM are 100% representative and in line with the employment equity plan of the Municipality by Municipal Institutional Development & Transformation To enhance service delivery with efficient institutional support by June Key Performance Measurement Performance target Baseline Indicator unit Quart 1 Quart 2 Quart 3 Quart 4 Annual Ratio of debt coverage. Ratio 2:1 2:1 2:1 2:1 2:1 2:1 Ratio of outstanding service debtors to revenue. Ratio 1,14:1 1,12:1 1,11:1 1:1 1:1 1:1 Ratio of cost coverage. Ratio 1:1, or maintaining the current status 1:1;, or maintaining the current status 1:1;, or maintaining the current status 1:1;, or maintaining the current status 1:1;, or maintaining the current status 1:1, or maintaining the current status 1:1;, or maintaining the current status Representivity in terms of the SPLM Equity Plan. % representivity 0 7 % 15% 21% 25% 25% Improve turnaround time of tender procurement process. Turnaround time New <R30k=2 wks<r200 k=21days >R200k= 6wksHighl y technical bids requiring expert advice and PPP s = 9 months <R30k=2 wks<r200 k=21days >R200k= 6wksHighl y technical bids requiring expert advice and PPP s = 9 months <R30k=2 wks<r200 k=21days >R200k= 6wksHighl y technical bids requiring expert advice and PPP s = 9 months >R200=6wks Highly technical bids requiring expert advice and PPP s = 9 months <R30k=2 wks<r200k=21days>r200k=6wks. Highly technical bids requiring expert advice and PPP s = 9 months Improvement on turnaround time on applications for building plan approval from date of receiving the correct and complete application. Turnaround time Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

73 Key Performance Area IDP Goal Municipal Institutional Development & Transformation (Continued) To ensure completion of a Human Resource Strategy, aligned with the IDP by To ensure 100% implementation of the Institutional Transformation Initiative by the end of 2010/2011. To ensure 100% expenditure of the allocated budget to implement the Workplace Skills Plan annually. To design and populate an organisational structure by 2010/2011. To ensure that the MIS Strategy is fully implemented by July Good Governance & Public Participation To establish structured public participation processes for the different levels of planning and development by the Municipality by July To ensure that a comprehensive communication strategy is in place by September Key Performance Measurement Baseline Performance target Indicator unit Quart 1 Quart 2 Quart 3 Quart 4 Annual Improvement on turnaround time on applications for development applications from date of receiving the correct and complete application (excl. appeals, EIAs, Traffic Impact Studies, etc.). Turnaround time Finalisation and implementation of the HR Strategy. % completion HR Strategy 0 25% 50% 75% 100% 1 Progress with the development and implementation of the Institutional Transformation Initiative. % progress 10% 20% 30% 40% 40% 40 % expenditure of budget. 100% 25% 50% 75% 100% 100% Design and population of the organisational structure. % progress 0 25% 50% 75% 100% 100% Design Implementation of the MIS. % progress 0 25% 50% 75% 100% 100% No of ward committees established and functional. A formally constituted IDP Rep forum. No. of committees 23 All wards All wards All wards All wards All wards Comprehensive communication strategy available. % implementation Communication strategy 0 100% 100% Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

74 Key Performance Area IDP Goal Good Governance & Public Participation (Continued) To ensure an unqualified audit report by Improve the satisfaction of residents and councillors with frontline, face-to-face and over-the counter services by Key Performance Measurement Baseline Performance target Indicator unit Quart 1 Quart 2 Quart 3 Quart 4 Annual A qualified audit report; leading up to an unqualified audit opinion. Audit opinion Customer satisfaction Disclaimer Qualified audit opinion Qualified audit opinion Customer satisfaction as measured according to the Likert scale. New 72 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

75 REVENUE REPORT AS AT 31 DECEMBER 2007 Annual Budget Qtr1 Budgeted Qtr2 Budgeted Total Budget Actual INCOME BY SOURCE Variance Variance % 2008 Target Target 31 Dec Dec 2007 Property rates 105,572,000 26,393,000 26,393,000 52,786,000 69,921,493-17,135, Property rates penalties Service charges - elelctricity revenue 165,639,000 41,409,750 41,409,750 82,819,500 85,517,893-2,698, Service charges - water revenue 94,177,000 23,544,250 23,544,250 47,088,500 39,769,377 7,319, Service charges - sanitation revenue 32,473,000 8,118,250 8,118,250 16,236,500 18,097,997-1,861, Serrvice charges - refuse removal revenue 24,275,000 6,068,750 6,068,750 12,137,500 12,295, , Service charges - other 15,149,000 3,787,250 3,787,250 7,574,500 6,788, , Rental of facilities and equipment 11,705,000 2,926,250 2,926,250 5,852,500 5,353, , Interest earned - external investments 6,000,000 1,500,000 1,500,000 3,000,000 3,628, , Interest - outstanding debtors 35,800,000 8,950,000 8,950,000 17,900,000 17,900, Fines 7,032,000 1,758,000 1,758,000 3,516,000 2,026,006 1,489, Licences and permits 6,200,000 1,550,000 1,550,000 3,100,000 1,583,673 1,516, Government grants and subsidies 63,251,000 15,812,750 15,812,750 31,625,500 35,502,766-3,877, Internal transfers Other income 12,553,000 3,138,250 3,138,250 6,276,500 4,323,205 1,953, TOTAL 579,826, ,956, ,956, ,913, ,708,697-12,795, Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

76 EXPENDITURE AS AT 31 DECEMBER 2007 BY VOTE Actual Budget Budget Directorate Quarter 1 Quarter 2 Projection Variance Var % 2006/ /2008 Executive & Council Municipal General Municipal Manager Corporate Services Community Services Financial Services Strategy, Econ & Dev Infrastructure & Serv TOTAL Expenditure Employee Related Costs Remuneration of Councillors Bad Debts Collection Costs Depreciation Repairs & Maintenance Interest Paid Bulk Purchases Grants & Subsidies Paid General Expenses Loss on Disposal of PPE TOTAL Executive and Council Employee Related Costs Remuneration of Councillors Depreciation Repairs & Maintenance General Expenses TOTAL 12,986,773 13,774,472 3,444,948 6,732,659 13,625, , % 71,635,472 91,473,246 20,777,765 38,576,127 81,203,168 10,270, % 5,700,504 6,820,546 1,452,117 3,269,869 6,593, , % 25,018,855 26,785,158 7,079,394 14,283,285 31,426,142-4,640, % 72,343,173 80,389,808 18,673,915 38,252,489 80,911, , % 37,377,227 41,031,323 10,177,560 20,412,114 41,199, , % 17,539,117 19,842,409 3,635,308 7,623,666 20,440, , % 286,587, ,708,894 77,110, ,926, ,848,885-19,139, % 529,189, ,825, ,351, ,150, ,247,955-14,422, % 199,362, ,728,227 56,070, ,910, ,133,812-3,405, % 9,656,229 9,678,655 2,232,299 4,456,324 8,900, , % 40,000,000 56,000,000 18,666,667 32,666,667 56,000, % 777, , , , , % 29,812,960 28,999,305 28,999, % 23,202,559 23,103,043 9,507,096 19,454,430 24,517,759-1,414, % 5,960,618 6,162,610 1,211,915 1,943,299 6,162, % 104,461, ,000,000 25,254,391 51,523, ,329,219-9,329, % 390,367 1,160, , ,368 1,160, % 115,501, ,304,016 28,770,444 52,224, ,354,552-1,050, % 64, % 529,189, ,825, ,351, ,076, ,247,955-14,422, % 2,247,755 2,778, ,812 1,599,523 3,346, , % 9,656,229 9,678,655 2,232,299 4,456,324 8,900, , % 50, , , % 2,000 2, % 1,032,008 1,195, , ,812 1,255,872-60, % 12,986,773 13,774,472 3,444,948 6,732,659 13,625, , % 74 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

77 Directorate Municipal General Employee Related Costs Bad Debts Depreciation Repairs & Maintenance Grants & Subsidies Paid General Expenses Loss on Disposal of PPE TOTAL Municipal Manager Employee Related Costs Depreciation Repairs & Maintenance General Expenses TOTAL Corporate Services Employee Related Costs Depreciation Repairs & Maintenance General Expenses TOTAL Community Services Employee Related Costs Depreciation Repairs & Maintenance General Expenses TOTAL Actual Budget Budget 2006/ /2008 Quarter 1 Quarter 2 Projection Variance Var % 4,129,555 5,851, ,470 1,945,119 2,576,523 3,275, % 22,000,000 33,000,000 11,000,000 19,250,000 33,000, % 1, % 4,949,870 3,070,000 3,070, % 272,374 1,000, , ,368 1,000, % 40,217,792 48,551,446 8,459,927 16,686,002 41,556,645 6,994, % 64, % 71,635,472 91,473,246 20,777,765 38,252,489 81,203,168 10,270, % 4,600,515 5,597,076 1,255,043 2,649,227 5,333, , % 1, % 1,396 10, , % 1,097,582 1,213, , ,480 1,249,286-36, % 5,700,504 6,820,546 1,452,117 3,269,869 6,593, , % 16,957,582 19,662,744 6,300,356 11,739,526 22,390,785-2,728, % 1,530,280 1,271,177 1,271, % -1,367, , , , , % 7,898,388 5,405, ,342 2,040,487 7,318,352-1,912, % 25,018,855 26,785,158 7,079,394 14,283,285 31,426,142-4,640, % 55,469,334 63,464,652 15,104,560 31,801,567 63,234, , % 2,247,362 2,179,884 2,179, % 2,113,659 2,403, ,661 1,005,537 2,403, % 12,512,818 12,342,053 3,141,694 5,769,023 13,093, , % 72,343,173 80,389,808 18,673,915 38,576,127 80,911, , % Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

78 Directorate Financial Services Employee Related Costs Collection Costs Depreciation Repairs & Maintenance Grants & Subsidies Paid General Expenses TOTAL Strategic and Economic Development Employee Related Costs Depreciation Repairs & Maintenance General Expenses TOTAL Infrastructure and Services Employee Related Costs Bad Debts Collection Costs Depreciation Repairs & Maintenance Interest Paid Bulk Purchases General Expenses TOTAL Actual Budget Budget 2006/ /2008 Quarter 1 Quarter 2 Projection Variance Var % 29,097,428 33,303,333 8,093,998 16,982,381 33,285,428 17, % 37,721 30,000 3,711 10,603 30, % 245, , , % 109, ,815 39,230 75, , % 117, , , , , % 7,769,363 7,070,624 1,880,621 3,183,326 7,256, , % 37,377,227 41,031,323 10,177,560 20,412,114 41,199, , % 9,757,313 11,702,802 2,772,984 5,903,063 12,234, , % 743, , , % 373, ,672 18, , , % 6,664,679 6,867, ,505 1,619,966 6,933,433-65, % 17,539,117 19,842,409 3,635,308 7,623,666 20,440, , % 77,103,323 80,367,053 20,838,780 43,290,220 83,731,601-3,364, % 18,000,000 23,000,000 7,666,667 13,416,667 23,000, % 739, , , , , % 24,992,607 24,506,223 24,506, % 17,022,316 16,354,302 8,791,528 17,769,018 17,769,018-1,414, % 5,960,618 6,162,610 1,211,915 1,943,299 6,162, % 104,461, ,000,000 25,254,391 51,523, ,329,219-9,329, % 38,308,693 36,658,706 13,243,606 21,628,272 41,690,214-5,031, % 286,587, ,708,894 77,110, ,926, ,848,885-19,139, % 76 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

79 Capital Expenditure AT 31 DECEMBER 2007 Project Description A B C D E Total CRR/Counter Grant Funding Actual Variance Budget Funding Funding Source Spend Q2 Q2 R R R R % Roads 29,008,619 5,405,000 23,603,619 MIG/DHLG/CF 6,294, % Stormwater 4,949,581 1,903,820 3,045,761 MIG/DHLG/CF 2,787, % Water and Sanitation 37,235,620 1,826,400 35,409,220 MIG/FBDM 6,810, % Electricity (incl streetlights) 31,040, ,040,000 DME/LOAN/ESKOM 2,266, % GURP projects 23,032, ,032,000 DHLG 640, % Housing 4,082, ,000 3,582,970 DHLG/SUBS 591, % Community Services 3,296, ,000 2,643,000 CRR/FBDM/PROV 3,148, % LED, CBD & Urban Planning Projects 8,214,380 2,935,780 5,278,600 DHLG/CF 265, % Information Technology 1,776,000 1,776,000 0 DSAC/DHLG/FBDM 647, % Transport 12,300, ,300,000 LOAN % OTHER 904, ,000 MIG/CRR 88, % T O T A L 155,839,170 15,000, ,839,170 23,540, % Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

80 Service Delivery Targets & Indicators for 2007/2008 Mid-Year Report: 1 July 2007 to 31 December 2007 Key Performance Area IDP Goal Key Performance Indicator Measurement unit Baseline Perform Actual Target Achieved Quarter 2 Quarter 2 To effectively monitor and manage the declining economy of Sol Plaatje by 2014 % economic growth / decline, as measured in terms of the Economonitor % growth New No target set No baseline 1 Development Programme (LED) To maximise the number of jobs created through the municipality s local economic development initiatives, including capital projects by 2010 Number of permanent and temporary jobs created through initiatives of the SPLM Number of jobs New No target set 1,848 2 To ensure that the municipality spends 60% of its procurement budget on goods and services provided by local BEE and SMME enterprises annually % of procurement budget spend on procuring from local SMMEs and BEEs % spent 60% 60% 82% 3 Basic & Sustainable Service Delivery To provide 1,215 households in formal areas with a metered water connection by 2009/2010 To provide 840 households in formal settlements with basic sanitation by 2009/2010 Reduction in the number of households in formal areas without metered water connections Number of households in formal settlements provided with basic sanitation No. of households No. of households No target set No statistics available. In process of developing an Economonitor as instrument to measure performance in LED. Tender process underway. Waiting for Contract Department to provide scoring points. 2. This includes all jobs created through capital projects as well as people employed by the Mayoral Job creation projects. No distinction between permanent and temporary or in terms of man hours etc 3. The present financial system cannot provide the detail information to measure the actual payments to Local BEEs and SMMEs as the baseline is not captured. The actuals against the targets is therefore the payments from procurement to local businesses as a collective. 4. These households are post-1994 and are not part of bucket eradication. 78 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

81 Key Performance Area IDP Goal Key Performance Indicator Measurement unit Baseline Perform Actual Target Achieved Quarter 2 Quarter 2 To eradicate the bucket system in all pre-1994 formal areas by providing 682 households with sanitation by 2011/2012 Number of buckets in use in pre-1994 formal areas No. of households To provide 8,400 households with a water connection in informal areas by 2011/2012 Number of households connected to water in informal areas No. of households 0 No target set To reduce water losses to 15% by 2010/2011 % reduction in water losses % reduction 30% 23,28% No Information Basic & Sustainable Service Delivery To provide 8,400 households with a sanitation service in informal areas by 2011/2012 To ensure that 50kms of roads are surfaced by 2011 Number of households provided with sanitation services in informal areas Additional kms roads surfaced No. of households Kms 0 No target set km 5,7Km 8 To have a five-year Integrated Infrastructure and Assets Maintenance and Operations Plan by June 2008 Availability of a five-year Integrated Infrastructure and Assets Maintenance and Operations Plan Plan 0 50% 20% 9 To provide shelter for all by 2014 based on current demographic projections Number of families provided with houses No. of houses To provide 7,686 households with electricity connections in the SPLM area by 2011/2012 Number of households provided with electricity connections No. of households To reduce electricity losses to 11% by 2010/2011 % reduction in electricity losses % reduction 14% 13.50% 13,55% 5. After reconciliation of the backlog this number was eradicated. 6. Approximate number of extra households with access to standpipes in street (200m distance as per National requirement). 7. The water loss percentage was last updated in October 2007 and is affected by the inaccurate figures from the Revenue Collection information. Some of the figures are estimated and not Actual Readings. 8. Due to additional funding more Km of roads could be constructed. 9. Extra funding needs to be secured to do a survey and assessment of existing infrastructure before plan can be produced which delayed the process. 10. No funding allocated by DHLG for provision of housing. Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

82 Key Performance Area IDP Goal Basic & Sustainable Service Delivery (Continued) To provide 2,249 additional households with a weekly solid waste removal service by 2008/2009 Develop a sustainable energy strategy by June 2008 and annual review thereof To increase the payment level to 87% by 2010/2011 for current billing To spend at least 85% of the capital budget annually Municipal Financial Viability & Management Maintenance of the debt coverage ratio at current levels or at least 2:1 against net assets of the municipality Reduction of the ratio of outstanding service debtors to revenue to 4:5 by 2010/2011 Increase the cost coverage ratio to 1:1 annually or maintain the current status Municipal Institutional Development & Transformational To ensure that all levels of personnel on the organogram of the SPLM is 100% representative and line with the Employment Equity Plan of the Municipality by New households that received services since Dec 2007 in Hillcrest and Soul City. 12. See attached detail IDP Project Implementation Progress Report Key Performance Indicator Number of additional households provided with waste removal services Development and implementation of a sustainable energy strategy % payment level % of the capital budget spend annually Ratio of debt coverage Ratio of outstanding service debtors to revenue Ratio of cost coverage Representivity in terms of the SPLM Equity Plan Measurement unit No. of households A sustainable energy strategy Payment levels % spend Ratio Ratio Ratio % representivity Baseline Perform Actual Target Achieved Quarter 2 Quarter % 35% 65% 68% 90% 12 70% 38% 15,11% 2:1 2:1 48,10:1 1,14:1 1,11:1 3,95:1 1:1 or maintaining 1:1 or maintaining 2,56:1 the current status the current status 0 15% 25% 80 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

83 Key Performance Area IDP Goal Key Performance Indicator Measurement unit Baseline Perform Actual Target Achieved Quarter 2 Quarter 2 To enhance service delivery with efficient institutional support by June 2009 Improve turnaround time of tender procurement process Turnaround time <R30k=2 wks <R200k=21days >R200k=6wks Highly technical No Baseline bids requiring expert advice and PPP s = 9 months 13 Institutional Development & Transformation Improvement on turnaround time on applications for building plan approval from date of receiving the correct and complete application Turnaround time weeks Improvement on turnaround time on applications for development applications from date of receiving the correct and complete application (excl. appeals, EIAs, Traffic Impact Studies, etc.) Turnaround time weeks To ensure completion of a Human Resource Strategy, aligned with the IDP by 2008 Finalisation and implementation of the HR Strategy % Completion Strategy 0 50% 40% This indicator cannot be measured due to the fact that the procurement process was decentralised and administered by relevant line managers through Committee Services. Statistics were not kept. The process has now been centralised to enhance the procurement process. 14. Delays have occurred during the comments process by other stakeholders within the municipality on submitted applications. 15. During the work on the HR Strategy it was realised that all the HR Policies need first to be revised in order to give better guidance towards preparing a solid HR Strategy. This is in process and the target needs to be reassessed. Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

84 Key Performance Area IDP Goal Key Performance Indicator Measurement unit Baseline Perform Actual Target Achieved Quarter 2 Quarter 2 To ensure 100% implementation of the Institutional Transformation Initiative by the end of 2010/2011 Progress with the development and implementation of the Institutional Transformation Initiative % progress 10% 20% 20% 16 Good Governance & Public Participation To ensure 100% expenditure of the allocated budget to implement the Workplace Skills Plan annually % expenditure of budget % implementation 100% 50% 60% 17 To design and populate an organisational structure by 2010/2011 Design and population of the organisational structure % progress 0 50% 20% 18 To ensure that the MIS Strategy is fully implemented by July 2008 Implementation of the MIS % progress 0 50% No information To establish a structured public participation processes for the different levels of planning and development by the Municipality by July 2007 No of ward committees established and functional A formally constituted IDP Rep forum No. of committees Constituted IDP Rep Forum % 100% To ensure that a comprehensive communication strategy is in place by September 2007 Comprehensive communication strategy available Communication strategy 0 100% 95% 19 To ensure an unqualified audit report by 2010 A qualified audit report; leading up to an unqualified audit opinion Audit opinion Disclaimer -- No baseline 20 Improve the satisfaction of residents and councillors with front-line, face-to-face and over-the counter services by 2010 Customer satisfaction as measured according to the Likert scale Customer satisfaction New No target set Macro Organisational Structure in place, five Directors appointed and capacity building process 50% completed. Micro Organisation analysed and as is organogram prepared with proposals to fill gaps. Anticipate to do a skills and needs audit of human resources once funding has been secured. 17. During the first six-month period the funds were mainly spent on Safety and first aid training. For the second half of the financial year the funds will mainly be spent on protocol, fire brigade and traffic safety training. 18. See footnote Draft Strategy in place, to be tabled to EMT in March Internal Audit has conducted follow-up audits on the Auditor General s Report to ensure that the recommendations contained in his report are implemented. An action plan with due dates have been compiled and follow-ups are conducted by Internal Audit to ensure that due dates are adhered to. Last update Sept A Process Plan is being prepared at the moment which will indicate how the customer satisfaction survey should be conducted in a scientific manner. Research is also being done on how other municipalities are doing this. 82 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

85 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

86 KEY NOTES ON 2007/2008 CAPITAL SPENT REPORT 1 JULY 2007 TO 31 DCEMBER 2007 A summary of the actual capital spent against budget for the period 1 July 2007 to 31 December 2008 is indicated as only 15,11%. This is, however, not a true reflection as the following should be taken into consideration: 1. The actual amount spent on a project does not include committed amounts which are reflected on financial statements. Although these amounts have not yet been paid out the funds have already been committed and should therefore be added to the actual spent amount this amounted to R18,442, The Capital Budget is also inflated due to project budgets being reflected in the Municipality s Capital Budget but the project is either being implemented by external institutions without the funds actually being with the Municipality, or budgets that are being reflected in this financial year but which will only be spent in the next financial year this will be corrected during the adjustment budget, and include the following amounts: - Project Name Budget Comment Ripple control and area injection equipment Electricity New Hospital Nodal Projects funded from NDPG Lerato Park development Platfontein Soul City: Bus and Taxi Routes R10,000,000 Project being implemented by Eskom. Expenditure not incurred through SPM books. R7,000,000 SPM will handle the payment certificates and claim pay ments from Department of Health. Transformers have been ordered but delivery is only in 12 months time. See detail in project progress report. R16,450,000 Funding will only become available after Nodal Projects have been identified through the feasibility studies being conducted at present. R9, Negotiations ongoing with DHLG and ABSAdevco to do the development. R1,800,000 Project being implemented by DHLG. R2,132,339 Project being implemented by DHLG. Transport Infrastructure System R11,000,000 The MOA with NDoT was only signed in December Total R58,016,299 Should the above amounts be omitted and the commitments included in the calculation of actual spent against budget for the period 1 July 2007 to 31 December 2007, the actual spent against budget is 35%. 84 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

87 ANNEXURE 3 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

88 MULTI-YEAR MUNICIPAL PERFORMANCE PLAN (INSTITUTIONAL SCORECARD) 2008/ /2012 Key Performance Area Strategic Objective Key Performance Indicator Measurement unit A Reviewed LED Strategy in line with the National Framework for Local Economic Development in SA by July 2008 % Progress to complete a reviewed LED Strategy To provide a sound, affordable and predicable environment for business to control its risks and costs in order to expand existing economic activity and to attract new development Application of the Economonitor to measure growth tendencies in the Local Economy by June 2010 % Application 1. Local Economic Development Council adopted CDS with a detailed implementation framework and budget in order to commence with implementation by July % Progress of preparation and approval of CDS To maximise the number of jobs created through the municipality s local economic development initiatives, including capital projects by 2012 Number of jobs created through initiatives of the SPM (including EPWP and own projects) Number of jobs To ensure that the municipality spends 60% of its procurement budget on goods and services provided by local BEE and SMME enterprises annually % of procurement budget spend on procuring from local SMMEs and BEEs % procurement 2. Sustainable Service Delivery To provide 1,215 households in formal areas with a metered water connection by June 2009/2010 Number of households in formal areas provided with metered water connections No. of households Baseline (31/12/07) Performance Target 2008/ / / /2012 0% 100% 100% 100% 100% 0% 0% 100% 100% 100% 50% 0.00% 75.00% % 100% 1,848 new new new new no baseline due to systems 60% 60% 60% 60% limitation Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

89 Key Performance Area 2. Sustainable Service Delivery (Continued) Strategic Objective To provide 5,645 households in formal settlements with basic sanitation by 2011/2012 To provide 8,400 households with water connections in informal areas by 2011/2012 To provide 8,400 households with sanitation services in informal areas by 2011/2012 To reduce water losses to 15% by 2010/2011 To reduce electricity losses to 11% by 2010/2011 To ensure that 50kms of roads are surfaced by 2011/2012. (Total backlog 257 Km) To provide shelter for all by 2014 based on current demographic projections. (Backlog 14,794 units) To provide 1,800 households with electricity connections in the Sol Plaatje municipal area by 2011/2012 (Total backlog 7,686) Key Performance Indicator Number of households in formal areas provided with metered water connections Number of households connected to water in informal areas Number of households connected with sanitation services in informal areas % reduction in water losses % reduction in electricity losses Additional kms roads surfaced No of subsidised houses provided Preparation of a five-year Integrated Housing Plan by July 2008 Number of households provided with electricity connections Measurement unit No. of households No. of households No. of households % reduction % reduction No of Km No. of housholds % progress No of households Baseline (31/12/07) Performance Target 2008/ / / / ,250 1, , ,750 30% 26% 22% 18% 15% 13.55% 12.55% 12.00% 11.55% 11% 5,7Km 10Km 10Km 10Km 10Km 0 Dependent on the completion of a five-year Housing Plan and Infrastructure Investment Plan 0% 100% 100% 100% 100% Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

90 Key Performance Area Strategic Objective To ensure that all households receive a weekly solid waste removal service 2. Sustainable Service Delivery (Continued) To maximise the number of indigent households receiving free basic services by 2011/2012 Improve the satisfaction of residents and councillors with front-line, face-to-face and over-the counter services by Infrastructure Development Key Performance Indicator Number of additional households provided with solid waste removal services To maximse the number of indigent households receiving free basic water by 2011/2012 To maximise the number of indigent households receiving free basic electricity by 2011/2012 To maximise the number of indigent households receiving free basic alternative energy by 2011/2012 Customer satisfaction as measured according to the Likert scale A Council adopted Integrated Infrastructure Investment Plan by August 2008 A Council adopted fiveyear Integrated Infrastructure and Assets Maintenance and Operations Plan by July 2008 Measurement unit No of additional households No of households receiving FBW No of households receiving FBE No of households receiving FBAE Customer satisfaction % progress in preparing Plan % progress in preparing Plan Baseline (31/12/07) Performance Target 2008/ / / / New households added New households added New households added New households added 9, New New New 9, New New New New New New New New 0 10% 40% 60% 80% 0% 100% 100% 100% 100% 20% 100% 100% 100% 100% 88 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

91 Key Performance Area 3. Infrastructure Development (Continued) 4. Financial Viability and Management Strategic Objective To ensure a sustainable and well maintained infrastructure development programme for SPM by 2011/2012 To increase the payment level to 87% by 2010/2011 for current billing To spend at least 85% of the capital budget annually To spend at least 90% of the operational budget annually Maintain the debt coverage ratio at current levels or at least 2:1 against net assets of the municipality To reduce the ratio of outstanding service debtors to revenue by 2010/2011 Increase the cost coverage ratio to 1:1 annually or maintain the current status Key Performance Indicator Kms of road patched and resealed Development and implementation of a Sustainable Energy and Climate Change Strategy (SECCS) To realise at least a 10% saving on the SPM s electricity consumption by July 2008 % increase in payment levels % of the capital budget spend annually % of the operational budget spend annually Ratio of debt coverage Ratio of outstanding service debtors to revenue Ratio of cost coverage Measurement unit Kms % Progress in developing a sustainable energy strategy MVA/% reduction in electricity consumption Payment levels % spend % spend Ratio Ratio Ratio Baseline (31/12/07) Performance Target 2008/ / / / % 100% 100% 100% 100% 103 MVA used/100% 93 MVA 93 MVA 93 MVA 93 MVA No baseline due to systems limitation 80% 87% 87% 87% 35% 85% 85% 85% 85% 52% 90% 90% 90% 90% 2:1 2:1 2:1 2:1 2:1 1,14:1 9:10 4:5 4:5 4:5 1:1 / or maintain current status 1:1 1:1 1:1 1:1 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

92 Key Performance Area 4. Financial Viability and Management (Continued) 5. Municipal Institutional Development and Transformation Strategic Objective To procure and implement a functional integrated electronic financial management system to efficiently manage the finances of the Municipality compliant to the MFMA by July 2008 To improve the Municipality s credit rating by 2011/2012 To ensure that all levels of personnel on the organogram of the SPM are 100% representative and in line with the employment equity plan of the Municipality by June 2009 To enhance service delivery with efficient institutional support by June 2009 Key Performance Indicator A fully functional electronic financial system in operation by 1 July 2008 Improved credit rating 2011/2012 Representivity in terms of the SPLM Equity Plan Improve turnaround time of SCM process Improvement on turnaround time on applications for building plan approval from date of receiving the correct and complete application Improvement on turnaround time on applications for development applications from date of receiving the correct and complete application (excl. appeals, EIAs, Traffic Impact Studies, Measurement unit 100% functional financial system Credit rating % representivity Turnaround time (weeks) Turmaround time (weeks) Turnaround time (weeks) Baseline (31/12/07) Performance Target 2008/ / / /2012 0% 100% 100% 100% 100% New A process to attain an official rating started in May 2008 and as soon as the status quo in terms of a rating is known the targets can be set. 25% 100% 100% 100% 100% New Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

93 Key Performance Area 5. Municipal Institutional Development and Transformation (Continued) 6. Good Governance and Public Participation Strategic Objective To ensure completion of a Human Resource Strategy, aligned with the IDP by 2008 To ensure 100% expenditure of the allocated budget to implement the Workplace Skills Plan annually To ensure that all Section 57 managers comply with the minimum competency levels as prescribed by the Municipal Regulations on Minimum Competency Levels by 2012 To design an organisational structure by 2009/2010 To ensure that the Council adopted MIS Strategy is fully implemented by July 2009 To populate the organisational structure by 2011/2012 To establish structured public participation processes for the different levels of planning and development by the Municipality by July 2007 To establish comprehensive corporate branding for Sol Plaatje Municipality Key Performance Indicator Council adopted HR Strategy % expenditure of budget Number of Section 57 Managers who have attained the necessary higher qualification as prescribed by the Regulations Design and population of the organisational structure Implementation of the MIS % of approved post on Organogram competently filled No of ward committees established and functional Council adopted Comprehensive Communication Strategy implemented Measurement unit % completion of HR Strategy % expenditure No of Managers attaining prescribed higher qualification % progress % progress % of posts competently filled No. of committees % completion of Communication Baseline (31/12/07) Performance Target 2008/ / / / % 80% 100% 100% 100% 60% 95% 96% 97% 100% 20% 40% 60% 80% 100% 20% 70% 100% 100% 100% 0 100% 100% 100% 100% 0 10% 60% 80% 100% % 100% 100% 100% 100% Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

94 Key Performance Area Strategic Objective 6. Good Governance and Public Participation (Continued) To ensure an unqualified audit report for the 2010/2011 Financial Year Improve the satisfaction of residents and councillors with front-line, face-to-face and over-the counter services by 2010 Key Performance Indicator Audits in terms of Intenal Audit Plan Develop and roll out an Enterprise Risk Management Strategy Develop and roll out a Fraud Prevention Plan (FPP) A qualified audit report; leading up to an unqualified audit opinion Customer satisfaction as measured according to the Likert scale Measurement unit No of reports ERM Strategy FPP Audit opinion Customer satisfaction Baseline (31/12/07) Performance Target 2008/ / / / Disclaimer Qualified Qualified Unqualified Unqualified audit report report report report 0 20% 40% 60% 80% 92 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

95 ANNEXURE 4 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

96 Projects to be funded from own discretionary or alternative funding Matrix Org Resp Project Year/1st Priority KPA Type Vert Hor 2008/ / / /2012 Electricity All electrical diagrams (as built) to 2007 SER New Ops BN be converted to electronic format Electricity Replace old Plessey meters 2007 SER RU SS RRR 500, ,000 Electricity Electricity Electricity Electricity Electricity Electricity Electricity Electricity Electricity Electricity Electricity Electricity Replace ageing LV (400V) 2007 SER RU SS RRR 500, ,000 underground cables Installation of pre-paid meters and 2007 SER RU SS RRR 800, ,000 demand meters Introduce a five year fleet 2007 INS RU Ops RRR 4,600,000 4,600,000 4,600,000 4,600,000 replacement programme Replace single phase 11kV system 2007 SER RU Ops RRR 1,000,000 1,000, in Southridge Replace old 11kV circuit breakers/ 2007 SER RU Ops RRR 1,000,000 1,000,000 1,000,000 1,000,000 ring mains in Kimberley Area Replace 11kV overhead lines in 2007 SER RU Ops RRR 1,000,000 1,000,000 1,000,000 1,000,000 Galeshewe Replace ageing MV (11kV) under SER RU Ops RRR 1,000,000 1,000, ground cables in Kimberley Area Replace ageing 66 kv circuit 2007 SER RU Ops RRR 1,000,000 1,000, breakers at main substations Replace ageing Mini-substations in 2007 SER RU Ops RRR 1,000,000 1,000, Kimberley Area Replace hazardous Magnifix 2007 SER RU Ops RRR 500, , switchgear Replace old metering and 2007 SER RU Ops RRR 500, , distribution kiosks Upgrade electrical wiring in all 2007 SER RU Ops RRR 200, , Council Buildings (compliance Certificate) Electricity Upgrade old protection relays 2007 SER RU Ops RRR 100, , Electricity Upgrade and refurbish Riverton S/S 2007 SER RU Ops RRR 4,000, (2x transformers) 94 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

97 Matrix Org Resp Project Year/1st Priority KPA Type Vert Hor 2008/ / / /2012 Electricity Upgrade Southridge transformers 2007 SER RU Ops RRR 2,000,000 2,000, (2) - New development in area Electricity Upgrade Silson road S/S 2007 SER RU Ops RRR 500, Information Management Replacement programme: 2007 INS Man Ops RRR 350, , , ,000 IT Hardware Information Management Establishment of offsite disaster 2007 INS Man Ops Crisis ,000 0 command centre (Stores) LED CBD Upgrade: CBD Gateways 2007 LED RU SS NPI 400, , LED CBD Upgrade: DFA Parking and 2007 LED RU SS NPI Upgrade Roads & Stormwater Develop Stormwater Master Plan 2007 INS Man Ops RRR 1,500, and Management System Emergency Services Galeshewe Satellite - Extension 2007 SER New CN BN engine bay Emergency Services Ritchie satellite - Engine bay 2007 SER New CN BN Emergency Services Emergency Services Replacement of engine bay doors / 2007 INS RU Ops BN motors Fully equipped rescue fire fighting 2007 SER New Ops BN 2,800, vehicle - Galeshewe Emergency Services Water tanker - main station INS RU Ops BN 1,000, replacement Emergency Services 4x4 LDV - veld fires 2007 INS New Ops BN 650, R 26,900,000 R 16,625,000 R 7,160,000 R 7,125,000 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

98 96 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

99 ANNEXURE 5 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

100 CAPITAL PROJECT SCHEDULE Ward priorities submitted Org Resp Projects Ward Electricity High Masts (Modile and cemetery) 11 Parks Agisanang Park Fence 11 Roads & Stormwater Arena Tarred roads 11 Housing Agisanang, Bekhuzulu (50% completed), Hostel 11 Parks Park (Natasha Street) 3 Urban Planning Upgrading of Homelite park 3 Parks Park (Main Rd) 3 Community Services Play park in Homevalley 3 Electricity High Mast lights (Sardine, Sandshark and Rhona close) 3 Roads & Stormwater Upgrade Streets (See list) 3 Community Services Multi Purpose Centre 3 Health Upgrade of Clinic 3 Parks Resort at Witdam (Fencing 1st phase, filling of holes) 4 Roads & Stormwater Infrastructure (drainage Tshaka street) 11 Health Agisanang abestosis/gwelo /Badumedi 11 Roads & Stormwater Speed bumps (Police forum) 11 Roads & Stormwater Phillip Mpiwa, Dingaan Hostel, Graveyard curve, Magoda curve Nobegula Matanzima intersec of Siwisa 11 Roads & Stormwater Drainage/Thokoza/Mpumelelo street 11 Electricity Highmast (Sardine, Sandshark street Homelite, Rhona close Homestead) 3 Community Services Provision of a Library 3 Roads & Stormwater Tarring of streets 16th, 21st, 22nd, 24th streets in Homevale Ext, Porpoise, Pilchard, Sardine, Barracuda, Salmon, Anchovy Sole Close, Bass Close, Hake close, Gold fish close, 3 Mackeral, Haddock, Whitting, Garrick Bream street in Homelite, Marthennay, Roads & Stormwater Cyntrex Proman street in Homevalley, Pilchard, Porpoise, Sardine, Barracuda, Anchovy, Salmon, 3 Roads & Stormwater Bream Drive, Whitting, Haddock and Mackerel Street in Homelite 3 Community Services Playground at Barracuda street in Homelite open space 3 Parks Recreational park next to Roodepan road 3 Parks Upgrading of soccer fields in 18th street, 11th street, Sandshark street and Homevalley 3 Community Services Multi Purpose Centre 3 Community Services Provision of a Clinic 3 Community Services Recreational centre (open space next to Boikhutsong crèche) 6 Roads & Stormwater Bloemanda roads (the whole of ward 6) 6 Community Services Upgrade (Soccer fields ie Ramora soccer field, Botsang soccer field) 6 Community Services Extend Masakhane clinic 6 Community Services Mobile clinic for Seochwareng old age home, & toilets 6 Community Services Build (old age home, Kagisho crèche) 6 Roads & Stormwater Drainage passing through ward 6 (ie sloot) Mmutla street 6 Parks Playground (Mathibe Street open space) 6 Housing Maintenance of all defect houses including Blikkiesdorp houses 6 Roads & Stormwater Uplifting (of all remaining flooded houses e.g. Magashula, Sehularo, Seleke, Boikanyo houses) 6 98 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

101 Org Resp Projects Ward Electricity Street lights (Tshwene & Ramora) (Lights & toilets to be erected at Thutlo park) 6 Parks Playground equipment for Botsang Park 6 Electricity Flood light (between Solly store and Thutlo street) 6 Finance Prepaid Vending Machine (Ward 6) 6 Cleansing Cleaning (open space of Phokoje street Witdam, Ramora open space, Witdam Stoles) 4 Parks Otto street, Homestead open space, Lynch street potholes, bucket system 4 Parks Upgrade sports grounds 4 Community Services Community Hall (next to sports ground) 4 Electricity Highmast lights at Phokoje street field, Witdam roads, Tholo Str, Phuti Str and Phokoje St 4 Electricity Street lights 4 Roads & Stormwater Complete van Weegen Rd (Homestead) 4 Roads & Stormwater Complete street names in area 4 Roads & Stormwater Stormwater in most streets to be properly treated 4 Housing Build (house - open field - Ramora) 4 Housing Build 216, 300 houses in the next 2007 & Housing 300 houses to be built in 2009, 2010, Roads & Stormwater Upgrade: Maintenance in Naborn & Gregory park 1 Parks Upgrade: 2 parks to be developed (Celosia) 1 Cleansing Refuse: 20 people to be employed to keep ward clean permanently 1 Cleansing 2 dumping sites to be planned and fenced 1 Housing Gregory Park (1), Naborn (3) Per unit, Flats 1 container per block of flats, Rosy park shanties 1 Cleansing Refuse removal services, semi detached houses (old Roodepan) (1) Riverton - 1 container 1 Electricity Highmast lights: Gregory parks (2) Corner Eagle & Begonia (1) Chrysanthenum (Roodepan Shanties) Freezia str, at old Apostolic church and opposite multi-purpose centre, Hammerkop street, corner Raven corner daisy str, Riverton - Entrance between 1 church & Soccer field and additional one where area is to surveyed for hundred houses Community Services Stadium (Upgrade & Maintanance) 1 Community Services Clinic (Upgrade & Equipment 1 Community Services Multi purpose centre (ceiling, paving, grass) 1 Roads & Stormwater Bicycle - Roodepan cemetry road / eagle street both sides, Lanes Riverton road that leads to Riverton resrt 1 Housing Flats (upgrade & lighting) 1 Roads & Stormwater Street Names (Labour Intensive) (community) 1 Parks Greening Labour Intensive (Community) 1 Community Services Swedish Hall: Maintanance 1 Parks Development and maintenance of all parks 1 Parks Upgrade (Soccer fields) 1 Community Services Develop (Crèche) 1 Electricity Highmast lights (two to be erected) 1 Roads & Stormwater Gravel roads (job creation) 1 Roads & Stormwater Speed Bumps: Starling str, opposite Biggs tuckshop and juice den / Raven str, Opposite clinic and at front gate of Lucretia school 1 Roads & Stormwater Paving - Longstreet, Joy str, (Riverton) Dikkop str, Hammerkop str 1 Community Services Clinic (to operate daily and be maintained) 1 Cleansing Cleaning (10 people to be employed to keep the area clean (ongoing)) 1 Community Services Library (Planning and Development) 1 Community Services Riverton Resort: Job creation (Upgrade Riverton school) Councillor office - Paint & office furniture 1 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

102 Org Resp Projects Ward Cleansing Refuse Removal: service to be provided for the whole community 1 Housing 216 Scheme, Jackonsonville phase 2 Survey Houses (400) 2 Roads & Stormwater Maintenance, build and upgrade & Jacksonville /Hammerkop str 2 Roads & Stormwater Upgrade (job creation) (Eagle str, White City cemetary) 2 Water and Sanitation Sewarage (Fencing of pump station in White City and Upgrade) 2 Roads & Stormwater Taxi rank (CNR Tchaikorsky road/albatross) 2 Parks Development and maintenance of all parks 2 Cleansing Cleaning (20 people to employed permanently, refuse sites to be identified and fenced) 2 Community Services Upgrade Multi Purpose Centre (paving, grass, ceiling and flooring) 2 Community Services Clinic (upgrade & equipment) 2 Roads & Stormwater Street Names (upgrade & paving) 2 Electricity Highmast Light - Torres Park informal settlement (position to be determined) - safety of community 2 Parks Close ground (fencing with devils fork) 2 Water and Sanitation Sewerage (Fencing of pump station in White City and Upgrade) 2 Parks Cemetary (cleaning, fencing & taps) 2 Urban Planning Proposed subdivision & rezoning of Erf 21922; (25 Erven) zone 9 Vergenoeg ext 2, Galeshewe 5 Urban Planning Pegging of Erfs, Shifting of Shacks to erven areas, 5 Water and Sanitation Provision of infrastructure (water and sewerage) Provision of electricity 5 Water and Sanitation Bucket eradication for the 25 erven and Thete street. Plot numbers are as follows 222, 225, 224, 227, 228, 232, 237, 236 Housing (Unfinished Houses of Thusano) Redirile, and and Othniel Gaitsewe Street, Moshe Kantani Redirile 5 Roads & Stormwater Tshwene Ext Thusano , 15136,15227, 15211, 15305,15312, 15257, 15200, Housing Complete the following unfinished houses in: Tshwene Ext Thusano, Tshwene Ext, Thusano18806, Stanley Batyashe, Deke Street, Deke Street, Deke Street Mathibe: 21972, 21945, 21947, Stamper Str: 159, Mathibe street 21939, Deke Street, Deke Street Housing Complete half built houses in Thusano 5 Housing Unfinished house of zone 9 Madalane /Mathibe (to be completed) 5 Housing Problems (18775 Gaetsewe Redirile (loose roof) 5 Housing Stanley Batyashe (foundation flat rain in) 5 Housing Moshe Kantane (loose roof) 5 Housing 8015 Kabelo Makaudi (broken roof - one) 5 Housing Side loses roof of the toilet since that disaster wind in December Roads & Stormwater Tarred roads (50m between Tshwene and Stamper street; Madiba, Hutshe Segolodi) 5 Traffic Street names to be erected between Adam Namokola & Amakhuzane Streets and between Tshwene Ext & Stamper str 5 Roads & Stormwater Drift in Tshwene Ext. golf course 5 Roads & Stormwater Build water canals to forward water from cul de sacs in Thusano to the main storm water 5 Roads & Stormwater Drain in Hutshe Segolodi street 5 Roads & Stormwater Speed Bumps (Tshwene ext (300m apart, Matanzima street Redirile (300m apart) 5 Roads & Stormwater Thandiwe Thompson Redirile (300m apart) 5 Roads & Stormwater Jeremiah Sebe Redirile (300m apart) 5 Roads & Stormwater Stamper street Redirile (300m apart) Amakhuzane 300m apart 5 Roads & Stormwater Adam namakola street (300m apart) 5 Traffic Stop sign (Redirile, Thusano, Vergenoeg Ext 2) Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

103 Org Resp Projects Ward Electricity Streetlights (check new globes Stamper, Tshwene, & Hyper Mask light Corner Tshwene, Amakhuzane str 5 Community Services Ibonga day care centre, golf course mask Hutshe Segolodi Hyper Mask 5 Parks Upgrade (Golf course, fencing of devils fork, greening) 5 Parks Build (Club house with showers, toilets & dressing room) 5 Parks Open space Matanzima & St Peters Church, Zone 9 Open space - Mathibe street 5 Parks Soccer grounds (Makapane and Mathibe Open space (park & football field, devils fork fence, tables & chairs, braai stands) 5 Housing 540 Houses (Donkerhoek) 8 Roads & Stormwater John Daka Phase 1 & Mampe 3 8 Roads & Stormwater Roads and stormwater in John Daka Phase 1 & Mampe 3 (Thesele, Thomas Morebudi, Dr Letele & R Sobukwe, G Wotshela, C Ramaphosa) 8 Electricity Highmast (Donkerhoek Northern part for 152 Urbans (households 540) 8 Electricity Streetlights (John Daka Phase 1 and Mampe 3). The whole of ward 8, first at John Daka Phase 1 & Mampe 3 High Mast lights Southern Part (7de Laan x 4) 8 Roads & Stormwater Bicycle path from Mixies to Spar 8 Community Services Ibongo day care centre 5 Parks Golf course (including Club House and Facilities) 5 Electricity Street lights- Motlhaoleng, H Peterson, Letsholo, Frank Chikane, Sam Nojoma, Z Mothopeng str 15 Roads & Stormwater Speed Bumps - OR Tambo and Bicycle lane, Letsholo str and Bicycle lane, 15 Roads & Stormwater Motlhaoleng str and Bicycle lane, Thabo Modupi str and Bicycle lane, Khuzwayo & Bicycle lane 15 Roads & Stormwater Sam Nojoma str and Bicycle lane, John Daka road and Bicycle lane 15 Roads & Stormwater Roads and Bicycle Lane - H Peterson str, JB Selehoe str, M Maropong str, Gwagwa str, 15 Roads & Stormwater Daniel Montsho str, M Goniwe str, E Khuzwayo str, T Modupi str, W Janson str, S Nojoma str, 15 Roads & Stormwater Z Mothopeng str, T Mbeki str, G Mbeki str, E Boesak str, G Sekoto str, T Claasen str, 15 Roads & Stormwater Jay Naidoo str, F Chikane str, Thuthuzelane str, Dithweba str, N Mandela str, N Khumalo str, 15 Roads & Stormwater L Rapodile str, T Sexwale str, S Mashell str, J Lekhotla str, B Alexanda str 15 Roads & Stormwater Pedestrian lane - Letsholo str - front of Vuyolwethu school, Thabo Modupi str - Rainbow Preschool and John Daka - front of Boitumelo special school - need scholar patrol. 15 Housing 590 houses to be built 15 Roads & Stormwater Bridge - At K Mooketsi 15 Community Services Community Halls 15 Parks Parks (4) 15 Parks Sports Grounds (3) 15 Housing Development of D Zone : Promise Land 15 Cleansing Cleaning of open space 15 Roads & Stormwater Stormwater drainage (Thabo Modupi, Oliver Thambo, Khuzwayo, Mothlaleng, Hector Petersen, Zeph Motupeng, Nujoma, Frank Chikane) 15 Community Services Clinic - overcrowding, understaffed, stock and equipment, lack of billboards and privacy) 22 Speakers Office Poor communication between stakeholders community 22 Community Services Libraries - shortage of books 22 Parks Sports and recreation - Parks upgrade, sport and recreation and cemeteries 22 Community Services General lack of facilities in our community, funds for developments and maintenance 22 Speakers Office Community involvement and inter departmental co-operation 22 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

104 Org Resp Projects Ward Community Services Safety and security - unkempt open spaces hiding criminal activities 22 Community Services Other community facilities - Youth centres, community/tourism, paypoints, meeting places 22 Housing Single rooms 22 Roads & Stormwater Roads and stormwater - lack of effective stormwater management, Upgrading and paving of residential streets 22 Water and Sanitation Water and sanitation - Upgrading of old water network, away with bucket system in shanties 22 Electricity Programme for streetligjhting as well as area lighting, Programme for electrification of residential ervens (400) 22 Housing Good basic housing for residents, to reduce housing backlog, 250 houses are needed 22 LED Local economic development - Activity Nodes and corridors, Tourism route, Car Wash project 22 LED Airport, Cycle track, Land subdivision for SMME use 22 Parks Development - St George ground into a soccer field 13 Parks Development - park next to the Social Centre 13 Roads & Stormwater Paving and tar roads- Methodist, Sesing, Masiza, Otto str 13 Roads & Stormwater Development - roads & paving in Chris Hani 13 Housing Development - houses in Zone 2 Santa Centre 13 Parks Development - parks in Zone 2 Santa Centre 13 Housing Demolish Old Santa Centre buildings and develop current 29 erven into 54 erven 13 Water and Sanitation Establishment of water drainage system, especially since water always floods and forms stagnant pools 13 Housing Revamping - 20 houses in Chris Hani 13 Cleansing Cleaning - dumping areas - ward Community Services Building - community Hall in Zone 2 13 Roads & Stormwater Drainage system 13 Special project - Twaku Street - Chris Hani Park 13 Housing 200 Houses (Omega street) 28 Housing Development of the DBCM dumps site for housing 28 Community Services Development - Multipurpose centre to be built 28 Roads & Stormwater Changing of old broken water drainage pipes on the roads 28 Roads & Stormwater Bridge to be built over the water drainage at Alfa street leading to Santa 28 Roads & Stormwater Completion of street tarring 28 Electricity Electricity vendoring 28 Roads & Stormwater Fixing of potholes in Colville 28 Roads & Stormwater Speed bumps (Agnes str, Olive Rd, St Pauls Rd, Greening in St Pauls Rd) 28 Parks Cutting of big trees in the yards 28 Community Services Extension of Sweden park hall 28 Parks Playground (Stadium) Upgrading of stadium, greening, fencing 28 Community Services Community Hall - Devils fork fence, Extension of Community Hall 28 Electricity High Mast Lights- Aandblom str, Suiderkruis str, Fraser Moleketi Park 28 Water and Sanitation Infrastructure for Freedom Park 27 Water and Sanitation Infrastructure for Fraser Moleketi Park 27 Parks Sportsgrounds 27 Community Services Multi Purpose centre 27 Cleansing Bulk Refuse Bins 27 Housing Housing - Freedom Park 27 Roads & Stormwater Covered Bus and Taxi facilities 27 Parks Parks (4) 27 Community Services Community library Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

105 Org Resp Projects Ward Water and Sanitation Eradication of buckets 27 Roads & Stormwater Street names 27 Roads & Stormwater Street names for Fraser Moleketi park 27 Roads & Stormwater Paved roads 27 Electricity High Mast Lights 27 Water and Sanitation Infrastructure 27 Community Services Clinic 27 Community Services Multi Purpose Cenetre 27 Community Services Satellite Police Station 27 Water and Sanitation Bucket eradication 27 Parks Parks (4) 27 Community Services Community crèche 27 Parks Play Park - erection-open space between Helen street and Edith street 14 Cleansing Rubbish bin - erected at the corner of Natasha and Helen street 14 Parks Open space- Barkly Rd and Constance Str - green strip, trees & grass to be planted 14 Roads & Stormwater Upgrade pavement - Barkly Rd where RDP houses are situated 14 Community Services Upgrade - clinic in Stockroos; fountain to be repaired, grass around fountain to be planted 14 Community Services Hall - to be renovated, the curtains to be renewed, painting to be done - inside the hall 14 Community Services More facilities like indoor sport centre, parking area, braai stands and trees can be planted 14 Community Services The Clinic - to be upgraded/renovated 14 Community Services Fencing - Clinic (Devils fork) 14 Parks Upgrade - Eddie Williams Oval, Florianville Swimming pool; mine dumps between Davidson str, Colville 14 Roads & Stormwater Remove - Extension 16 and St. John s str, Colville 14 Parks Upgrade - Parks 14 Parks Open space - Wesdar Mimosa and Mespinto 14 Parks Open space - Cypress Rd and Acacia Rd recreational facilities to be put up 14 Parks Utility - Stanford Str and Bede str - playing park to be fenced with devils fork 14 Roads & Stormwater Sloot - Loop street to be closed 14 Electricity Ashburnham - flashing light to be erected - Keiapple Rd area next to Railway line in Keiapple rd and sloot to be cleaned 14 Roads & Stormwater Pipes to be installed 14 Parks Recreational facilities to be build in area 14 Roads & Stormwater Siding 14 Parks Recreational facilities to be put up next to Railway line - Devils fork fencing to be erected 14 Roads & Stormwater St Pauls Road 14 Electricity The robots - right side - no pavement, the bridge to be repaired - too short - people can t walk 14 Roads & Stormwater The sloot - college rd - pipes to be installed and the area to be levelled, 14 Electricity Area behind Maureen str and Department of Education - flash light to be put up 14 Roads & Stormwater Recreational Road: Repair 3 brigdes 14 Roads & Stormwater Patching of potholes (Unit 1, 2, & 3) 17 Roads & Stormwater Fencing of Panikie 17 Roads & Stormwater Speed bumps (Nobengula str (North) at Ipeleng gang, Albert Luthuli, Morris Lenyibi, 3 way stop in Peace avenue, Lenong 17 Parks Ipeleng : Park - Open space with Playground facilities, braai-stand and chairs & tables 17 Community Services Tlhageng: Community hall 17 Roads & Stormwater Paving roads (Lenong, Lehututu, Tlhangwe, Nche Str) 17 Electricity Upgrade (soccer ground; streets lights) 17 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

106 Org Resp Projects Ward Electricity 2 high mass lights (soccer ground) 17 Water and Sanitation The entire ward all the manholes must be removed from the yards to the streets 17 Roads & Stormwater Kagisho - Patching of potholes (Kutlwanong) 17 Electricity 2 highmast lights (Tebogo Maseng str) 17 Roads & Stormwater John Mampe 11 - Tarred roads (Phakamile Mabija, Piper Lekoma, Cul De Sacs) 17 Parks Park (Fencing, playground facilities, braai stand, tables & chairs) Fencing of retention dam - between Kutlwanong & Kagiso 27 PLATFONTEIN Housing Houses 27 Water and Sanitation Flush toilets, taps 27 Roads & Stormwater Main roads to be tarred, Residential roads paving block, Street names and numbers 27 Parks Stadium/Sportsfield, Park, Swimming pool, fence of cemetery/schmidtsdrif 27 Cleansing Refuse dumping removal 27 Electricity Electrification of houses, streetlights All Service point (indigent registration, library, clinic, crèche, community hall) National/Provincial Function Hospital, Police Station, High School, Cultural Village, Home Affairs (satellite office), 27 Social workers, food packets Other Street to be Paved (Dinatla Drive 79/80/-180 (Street around IPCC), Mokonyama, Chou, Lillian Mantsane) Jenkins Mothibedi, Solani, Tumelo, Hlongwane, Boitumelo, Maokeng, Mosamo, Passage between Grootboom & Molatlhwa) With poles (both sides) Tsiane, January, Mpata, Reneilwe ext. 47&48 9 Roads & Stormwater Pavements Paving: Sediti, Matanzima, Lesego Street 9 Roads & Stormwater Paving Potholes 43 Ratanang, 57 Ratanang, 28 Reneilwe, 159 Phaphamang, 170 Garaboiketlo 9 Roads & Stormwater 232 Ipeleng lane, cnr Ipeleng lane & Phaphamang Crescent, cnr Fred Tshoba & Solomon Mekgwe, cnr Ramatshela & Grootboom, cnr Solomon Mekgwe & Lesego 9 Roads & Stormwater 566 Lerato, 619 Letsholo, cnr Makepe & Tsomane, cnr Mathanzima & Ratanang Ave 9 Roads & Stormwater Tarred Roads Potholes & Patching (65 Sediti, 257 Dinatla Ext, Sediti, 78/79 Ratanang ave, 249 Dinatla) 9 Roads & Stormwater cnr Sediti & Maokeng, cnr Molatlhwa & Sediti, cnr Mangope & Makume, cnr Ramatshela & Mangope 9 Roads & Stormwater cnr Lerato & Letsholo, cnr Moses Holele & Letsholo Str 9 Roads & Stormwater Names Plate (street) & Traffic Signs (Tsiane, Mokonyama, 505 Sediti, cnr Mapitse & Molatlhwa, cnr Mapitse & Mpangiso, 112 James Makoti, cnr Kgomotso & Garaboiketlo) 9 Roads & Stormwater Speed Bumps (Ratanang Ave, Lesego, Boipelo, Solomon Mekgwe str) 9 Roads & Stormwater Stormwater Intake / curbings & related problems (135 Kagisho, cnr Matanzima & Chou) 9 Roads & Stormwater 11708/11709 Mokonyama, cnr Matanzima & Sediti, 79 Mangope, cnr Nodoba & Makume, 248 Nodoba, 9 Roads & Stormwater 255 Nodoba, 407 Mosamo, Isaac Mofokeng, Fred Tshoba & Harry Lubidla - (Water Channel), EK Banda & Harry Lubidla 9 Roads & Stormwater Trees Pruned & Stumps removed (cnr Ramatshela & Matanzima, Mpata, Andrew Mapitse, John Daka, 9 Roads & Stormwater Nobengula, Ratanang, Kagisho,150 Ratanang, 35 Ratanang, 43 Ratanang, 218 Phaphamang, 74 Mlonyeni str) 9 Roads & Stormwater Empty Houses (51 Ratanang Ave, Molatlhwa) Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

107 Org Resp Projects Ward Electricity Chou str power station- Three locks be replaced, Mokonyama - substation, all power substations 9 Electricity be fenced - devils fork 9 Electricity Cleaning of open space/erven/pavements (cnr Ramatshela & Matanzima) 9 Roads & Stormwater Roads & Stormwater Paving (Phatsimang college, Moremogolo FET college, Letsholo, Lesego, Mosamo, 101 Mpho Raphoto, 9 64 Mlonyeni, Lillian Mantsane, Jenkins Mothibedi, Solani, Hlongwane, January str, Space between 9 Grootboom & Molatlhwa, Dinatla Drive & Matanzima, Matanzima & Chou, Moses Holele Roads & Stormwater & Solomon Mekgwe, Lesego/Solomon Mekgwe/Mazabane str, cnr Tsomane & Solomon Mekgwe str) 9 Roads & Stormwater Recreation/Sports/Tourism/LED (Solomon Mekgwe str- opposite FABLAB- Cultural centre) 9 Roads & Stormwater Nodoba/Molatlhwa str - Swimming pool 9 Roads & Stormwater Nodoba Street (Frank Roro Cricket Pitch) - Gymnasium 9 Roads & Stormwater Phaphamang Crescent (Ipopeng) - Adult Recreation centre under utilised park currently 9 Roads & Stormwater Fence (Witdam, Redirile School) 12 Roads & Stormwater Phakedi 12 Roads & Stormwater Park- Maintenance - Witdampark, Phillip Mphiwa, refuse container -placed - Witdam area 12 Roads & Stormwater Speed Bumps (Phillip Mphiwa, Phakedi, four way stop, Tyala Str) 12 Roads & Stormwater Flooding Houses (Passages-need urgent attention-rapes & murders- Mafungo, Kekana, Phakedi, Mkhuli, 12 Roads & Stormwater Judge street 12 Roads & Stormwater Bridge (Phillip Mphiwa Park) 12 Roads & Stormwater Dumping Sites -need attention- (Kekana/Lang Str-near Salvation Army & Madoyle Clinic, Magonare, 12 Roads & Stormwater Mashilo str, Phillip Mphiwa high way,near Redirile sch 12 Electricity Highmast - Phillip Mphiwa & Water 12 Parks Fence (Kutlwanong) 16 Roads & Stormwater Tebogo Kock, Kutlwanong 16 Roads & Stormwater Sloot - close 16 Roads & Stormwater Ipeleng (Seboane Str) 16 Electricity Streetlights- always off need to be changed 16 Parks Park 16 Water and Sanitation Transit Camp (toilets) 16 Roads Paving 16 Housing Houses to be developed 16 Housing 72 Single rooms to be turned into four roomed houses: Umtata, Gwelo, Lobatsi, Maseru, Ilovo Streets Water and Sanitation Shanty toilets to be replaced by bricks in Latlhi Mabilo Park, North Ave, Maseru, Lobatsi (+150 toilets) 19 Parks Fencing of Hulana Park 19 Roads Paving - Nyambane, Crutse, Lekhela, Malunga, Modiakgotla street 19 Stormwater Moshoeshoe Str & Montshiwa road 19 Community Services Building - soup kitchen services 19 Roads Paving - (Chris Hani, Debri, Green, Mzimba street) 20 Parks Park - Fence (Chris Hani) 20 Housing Develop open erf Roads & Stormwater Level area - front of Waterloo str Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

108 Org Resp Projects Ward Housing Mzimba str, (shacks) & approval site 20 Water and Sanitation Infrastructure - next Meriting garage 20 Electricity Meriting garage - area & erven 19888, 19889, Roads Paving/tarring (Tshwaragano area, Mongale, Moagi, Letlhaku, Molema street) 10 Cleansing Cleaning of all open space 10 Electricity Highmast - between Dingaan str & Score Supermarket 10 Parks Park - Tshwaragano 10 Roads & Stormwater Extension of Mapule Matsepane Clinic & fence to be equal to that of Tetlanyo school 10 Roads & Stormwater Speed Bumps (Kgosi street) 10 Water and Sanitation Toilets - Mapule Matsepane Clinic 10 Roads & Stormwater Drainage system (East end of 1st Ave, as per list provided) 25 Electricity Highmast have not worked for three years, lights need checking and bush cleared on K park side 25 Parks Parks/Recreational facilities (Clean & Fence - Park between 1st & 2nd ave, dumping opposite No. 10) 25 Parks Bartle Place, dumping takes place - open field between the Donga & Mr Cronje s residence, trees - trimmed 25 Parks Donga between Keely park lane adjacent - Central Rd, pavement on CBC side 25 Parks Parks (Klisser, ground next to Police flats -turned into park) 25 Cleansing Refuse & dumping (as per list provided) 25 Roads & Stormwater Potholes, Stop signs & Road Markings (Jules Katz, Greenside, Main Rd, Devenish st, Hercules Rd, 25 Roads & Stormwater Aristotle/Cape Town Rd, K&B supermarket area) (as per list provided) 25 Roads & Stormwater Water /Leaks (cnr Robinson str & Dixon place, Islands 48 & second block up from robot, cnr Carrington & Central Rd, cnr Dalham & Milner) 25 Housing Flats - ward 25 - maintenance (Eugene court, Eureka court, Hercules court, Impala court & Jonker court) 25 Cleansing Dumping signs 25 Community Services Recreational facilities (Sportfield, Youth centre) Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

109 ANNEXURE 6 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

110 Schedule of Capital Projects for 2008/09 and indicative years 2009/10 and 2010/11 ORGANISATIONAL RESPONSIBILTY PROJECT FUNDING WARD 2008/ / /2011 SOURCE Water and Sanitation Lindane/Promise Land (1000 erven): CRR 16 R515,790 R0 R0 Sanitation Roads and Stormwater Paving of Streets and Stormwater MIG Various R814,5993 R0 R0 Electricity Kimberley Streetlights MIG Various R1,000,000 R901,153 R1,588,650 Housing Lerato Park Phase 1 DHLG 27 R6,900,000 R4,225,073 Water and Sanitation Riverton: Rehabilitation Reticulation Dam DSM (Eskom 26 R1,399,692 Roads and Stormwater Galeshewe Streets and Taxi Routes (Proj 107) MIG Various R6,900,00 Water and Sanitation Ritchie: Waste Water Treatment Works MIG 26 R8,821,685 (Proj 244) Roads and Stormwater Galeshewe Stormwater CRR Various R800,000 R0 R0 Water and Sanitation Homevale Waste Water Treatment Works MIG All R14,412,893 R20,287,260 R0 Extension Roads and Stormwater Donkerhoek: Bus and Taxi Routes MIG 8 R999,834 R0 R0 Library Library Development Project DSAC Various R938,000 R1,031,000 R1,133,000 Electricity Electricity Supply to new Hospital DH All R13,500,000 R0 R0 LED SMME Village Galeshewe PIG 10 R4,614,380 R0 R0 GURP GURP Projects PIG Various R10,000,000 R7,000,000 R7,500,000 IT New Financial System (e-venus) CRR All R4,000,000 R0 R0 IT Business Process Re-engineering MSIG All R735,000 R735,000 R735,000 LED Ritchie: SMME Incubator Loan 27,28 R1,500,000 R0 R0 LED CBD Upgrade: Gateways Loan 20 R400,000 R0 R0 Transport 5-Year fleet Replacement Programme Loan All R3,800,000 R0 R0 Electricity Upgrade Southridge Transformers Loan 22,23 R5,150,000 R0 R0 Electricity Replace conventional meter with pre-paid Loan All R42,000,000 R27,000,000 R0 meter (IMS) Water and Sanitation Ritchie: Water and Sanitation (Ikageng) FBDM 27 R2,400,000 R0 R0 Parks Rehabilitation/development of parks FBDM Various R1,000,000 R0 R0 GURP Nodal Business Plans (Detail designs) NDPG Various R2,000,000 R2,352,000 R678,000 GURP Implementation (4 Nodal Business Plans) NPDG Various R10,000,000 R13,984,000 R20,095,000 TOTAL R127,911,880 R80,190,413 R53,076,100 The following wards each receive an amount of R250,000 to implement a project of their choice with the assistance from the Municipality in terms of planning and implementation Ward project Equitable 24 R250,000 Share Ward project Equitable 1 R250,000 Share Ward project Equitable 2 R250,000 Share Ward project Equitable 3 R250,000 Share Ward project Equitable 14 R250,000 Share Ward project Equitable 22 R250,000 Share Ward project Equitable 25 R250,000 Share Ward project Equitable 26 R250,000 Share Ward project Equitable 28 R250,000 Share TOTAL R2,250,000 GRAND TOTAL R130,161, Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

111 ANNEXURE 7 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/

112 Summary of operational budget for 2008 and indicative years 2009/2010 Executive & Council 0 18,507 18,507 18, , ,153 Municipal & General 0 106, ,126 37,173 68, , ,092 Municipal Manager s Office 0 10,093 10,093 10, , ,145 Corporate Services 0 31,205 31,205 31, , ,047 Community Services ,111 88,049 70,909 17,140 88,049 1,031 93,166 Financial Services 5,435 47,588 53,023 51,538 1,485 53, ,012 Strategy, Economic Development 28,514 23,905 52,419 34,419 18,000 52,419 23,336 25,015 Infrastructure & Services 90, , , ,605 88, ,361 55, ,858 TOTAL 125, , , , , , , ,488 Internal Charges and cross subsidisation 2008/2009 Appropriations Funding Surplus/ Appropriations Capital Operating Total Own Srce External Total (Deficit) Capital Operating R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 Municipal & General Corporate Services Community Services Financial Services Strategy, Economic Development Infrastructure & Services 0 78,019 78, ,018 TOTAL 125, , , , , , , , Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/2009

113 2009/ /2011 Funding Surplus/ Appropriations Funding Surplus/ Total Own Source External Total (Deficit) Capital Operating Total Own Source External Total (Deficit) R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R 000 R ,153 18, , ,119 19,119 19, , ,092 39,572 88, , , ,007 42, , ,007 10,145 10, , ,653 10,653 10, ,653 32,047 32, , ,828 33,828 33, ,828 94,197 90,321 3,876 94,197 1,133 97,293 98,426 94,915 3,511 98,426 50,747 49,262 1,485 50, ,929 52,664 50,929 1,735 52,664 48,351 26,015 22,336 48,351 28,273 26,166 54,439 27,666 26,773 54, , ,402 63, ,946 22, , , ,641 31, , , , , , , , , , , , , ,897 87, , , , , , , , , , ,465 0 Integrated Development Plan (IDP) 1st Review of 2007/ /2012 and Plan for 2008/