Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 1

Transcription

1 Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 1

2 The purpose of the presentation is to provide an overview of the current fiscal and socio-economic reality within which the 2017 budget is set, including an overview of the impact of the recent credit downgrades on the Western Cape; elaborate on the fiscal and budget policy principles that informed the 2017 Provincial Budget; share the 2017 Provincial Budget with specific reference to infrastructure spending within the Overberg District and the Theewaterskloof Municipality; and strengthen the working relationship and culture of intergovernmental cooperation between the Western Cape Government and the Municipality. Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 2

3 Economic & Fiscal Reality

4 Improving Global Outlook Global growth outlook Global growth slowed to 3.2% in 2016 (from 3.4% in 2015) led by a moderation in economic output in advanced economies while EM growth was flat at 4.3% in 2016 Global outlook optimistic as advanced economies projected to grow at 2% in 2017 and 1.9% in 2018; EM at 4.6% for 2017 and 4.8% for 2018 Support for global growth from BRICS will be much less in 2017 and 2018 than in previous periods World Advanced economies Emerging market and developing economies Risks includes a downward correction in US business sentiment; an EU hard-line to the UK will weaken trade prospects; Faster monetary policy normalisation in advanced economies Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 4

5 South African macroeconomic performance and outlook Consumer spending Indicator f 2018f Fixed investment Gross domestic expenditure Exports GDP CPI (ave) PPI (ave) Prime rate (eop) Current account (% of GDP) R/$ (ave) Consumer spending Lower consumer confidence Lower growth in private sector wage rate Moderating inflation Investment Policy uncertainty leading to lower business confidence Fiscal pressure to weigh on government investment Uptick in housing investment in Q1 Other Rising agricultural output Rand to move in narrow band Risks Faster global growth, but could lead to increased interest rates Political and institutional risks Further downgrades to sovereign rating Softer global commodity prices Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 5

6 Western Cape: Growth & Employment by District GDPR Growth Employment (Net change) District Trend Estimate Trend Estimate e e Cape Metro Cape Winelands Eden West Coast Overberg Central Karoo Total Western Cape Western Cape Government 2012 Budget to the People: Theewaterskloof Municipality 6

7 Real GDPR growth trend by sector and district (Average Growth pa, %) GDP Trend Sector Western Cape Cape Metro West Coast Cape Winelands Central Karoo Eden Overberg Agriculture, forestry & fishing Mining & quarrying Manufacturing Electricity, gas & water Construction Wholesale & retail trade, catering & accommodation Transport, storage & communication Finance, insurance, real estate & business services Community, social & personal services General government Total GDPR Growth Western Cape Government 2012 Budget to the People: Theewaterskloof Municipality 7

8 Western Cape Districts: Competitive Advantages in terms of GDP, location quotients (2015) 2015 Cape Metro Cape Winelands West Coast Eden Overberg Central Karoo Agriculture, forestry & fishing Mining & quarrying Manufacturing Electricity, gas & water Construction Wholesale & retail trade, catering & accommodation Transport, storage & communication Finance, insurance, real estate & business services Community, social & personal services General government Western Cape Government 2012 Budget to the People: Theewaterskloof Municipality 8

9 KEY VALUE CHAINS City of Cape Town BPO, oil and gas, film and tourism, ICT West Coast Tourism, wheat, rooibos, tea farming, steel and iron ore processing Eden Tourism, oil and gas, BPO, dairy, ostrich farming Cape Winelands Wine industry, apple and pear farming, tourism and education Central Karoo Sheep farming, transport and tourism Overberg Canola, apple and barley production and tourism Western Cape Government 2012 Budget to the People: Theewaterskloof Municipality 9

10 Impact of the current water crises Western Cape dam levels Dam % Full 28 August 2017 % Full 28 August 2016 Cape Town System Dams (Combined): Wemmershoek, Voëlvlei, Steenbras, Theewaterskloof and Berg River Dams Berg River Catchment Breede River Catchment Gouritz River Catchment Olifants/Doorn River Catchment Western Cape state of dams Source: National Department of Water and Sanitation Heavily and moderately water intensive businesses make up 30 per cent of the Western Cape economy in terms of Gross value added Oil and gas and agri-processing sectors are heavily water dependent While tourism is not a heavily or moderately dependent water sector, water is crucial for tourism experience The re-use potential of water in agriculture and agri-processing is regarded as high Potential impact on construction projects delays, reduction in infrastructure delivery Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 10

11 Credit Rating Downgrades

12 What happened? Credit rating agencies measure the probability of debt default and the associated expected losses. In terms of the 2017 ratings calendar, all three major credit ratings agencies, that is, Standard and Poor s (S&P), Fitch Ratings and Moody s, released their first sovereign credit rating reports for South Africa by June Standards and Poor s: Long-term sovereign foreign currency rating Sub-investment grade, negative outlook (3 April 2017). Fitch Ratings: Long-term foreign and local currency ratings Sub-investment grade, stable outlook (7 April 2017). Moody s: One notch above investment grade, negative outlook (9 June 2017) South Africa is as such seen as being an risk for defaulting on its debt. Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 12

13 Sub-investment: What does this mean for South Africa? Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 13

14 Budget Policy

15 Fiscal and Budget Policy Approach Execution of the Fiscal Strategy is done through three principles: Balanced budget Expenditure management Revenue management Balanced Budget The Fiscal and Budget Policy approach is designed to manage risk and maintain fiscal sustainability in a constrained economic Fiscal Strategy and fiscal environment. Expenditure Revenue Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 15

16 Fiscal and Budget Policy Principles Allocative Efficiency: Allocation of resources towards priorities of government to programmes that are effective. Fiscal Consolidation: Generally entails reducing government expenditure and/or increasing revenues. Fiscal Sustainability: Maintaining stability in key government programmes and managing risks. Fiscal Discipline: Financially accountability by ensuring that there is no irregular or wasteful spending by any department or entity. Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 16

17 Provincial Strategic Plan Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 17

18 Budget Policy Priorities PSG 1: Promoting investment and providing support to key economic sectors, artisan and technical skills, ease of doing business, green economy and toward infrastructure led growth Project Khulisa Saldanha Bay IDZ Atlantis SEZ Catalytic Infrastructure Ease of doing business programme Agriculture Energy Security Game Changer Apprenticeship Game Changer PSG 2: Improving Language and Mathematics, Matric pass rate, Quality education in poorer communities, e-learning, Early Childhood Development, Grade R, Youth Development and After School Programme No-fee schools and learner transport scheme Collaboration Schools MOD programme Year Beyond Youth Cafés Chrysalis Academy elearning Game Changer After Schools Programme Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 18

19 Budget Policy Priorities PSG 3: Inclusive, healthy and safe communities and families and children, social development services for the poor and most vulnerable and alcohol harms reduction WoW 1 st 1000 days campaign Integrated Service Delivery Model Services to persons with disabilities, children and older persons Supporting arts and culture Community Safety Improvement Western Cape Police Ombudsman Road safety PSG 4: Integrated Human Settlements, Spatial and development planning, sustainable ecological (water and climate change) and agricultural resource-base and Better Living Model Catalytic housing projects Water security/drought/climate change RSEP/VPUU Fire and disaster management Provincial Spatial Development Plan Better Living Model Game Changer Good financial Management Supporting Municipalities Data Governance Broadband Game Changer Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 19 19

20 Budget Policy Priorities PSG 5: Enhanced Governance, Integrated Management, Inclusive Society and Broadband Good financial Management Supporting Municipalities Data Governance Broadband Game Changer Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 20

21 2017 Provincial Budget: Overview

22 2017/18 Budget Public value creation by spending public funds in a sustainable and effective way. INCLUSIVE + SUSTAINABLE + SMART GROWTH Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 22

23 Theewaterskloof: Payments and Estimates VOTE Revised Estimate 2016/17 R /18 R /19 R /20 R 000 Community Safety Education Health Social Development Human Settlements Transport and Public Works Agriculture Cultural Affairs and Sport Local Government TOTAL Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 23

24 INFRASTRUCTURE-LED GROWTH R28 billion across next 3 years to develop infrastructure and housing PSG 1: To grow the economy and create jobs Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 24

25 2017 MTEF: Infrastructure Budgets Education R4.8 billion Health R2.5 billion Human Settlements R7.2 billion Social Development R1.9 million Transport and Public Works R11.6 billion Environmental Affairs R113.1 million Broadband R1.7 billion PPP R230.8 million Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 25

26 2017/18 Spatial Infrastructure Distributions Total 2017/18 Estimates: R8.6 billion Across districts R2.6 bn 30.2% City of Cape Town R2.4 bn 28.1% Central Karoo R128.0 m 1.5% West Coast R731.5 m 8.5% Eden R1.0 bn 12.0% Overberg R416.0 m 4.8% Cape Winelands R1.3 bn 14.8% Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 26

27 Overberg Infrastructure Estimates Total 2017/18 allocation: R416.0 million Overberg District Municipality: R89.4 million Swellendam R5.4 million Theewaterskloof R200.0 million Cape Agulhas Overstrand R33.3 million R87.9 million Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 27

28 Overberg District Total Infrastructure 2017/18: R416.0 million Functional Area Overberg District Theewaterskloof Overstrand Swellendam Cape Agulhas Cape Nature Education Health Human Settlements Public Works Transport Social Development TOTAL Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 28

29 THEEWATERSKLOOF Provincial Infrastructure Spend

30 Theewaterskloof Total Infrastructure 2017/18 MTEF: R474.4 million Functional Area 2017/ / /20 TOTAL Cape Nature Education Health Human Settlements Public Works Transport Social Development TOTAL Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 30

31 EDUCATION 2017/18 MTEF: R80.5 million Project Description 2017/ / /20 Total MTEF Swartberg Primary School Umyezo Wama Apile Primary School Umyezo Wama Apile SS (Grabouw SS) TOTAL Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 31

32 Provincial Infrastructure Projects: Education Construction of new Umyezo Wama Apile High School, Grabouw Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 32

33 Provincial Infrastructure Projects: Education Construction of new Umyezo Wama Apile High School, Grabouw Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 33

34 Provincial Infrastructure Projects: Education Construction of new Umyezo Wama Apile High School, Grabouw Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 34

35 HEALTH 2017/18 MTEF: R13.9 million Project Description 2017/ / /20 Total MTEF CI820027: Villiersdorp Ambulance Station Replacement CI810095: Villiersdorp Clinic Replacement CH810022: Gansbaai Clinic - HT - Upgrade and Additions CI830123: Caledon Hospital - Acute Psychiatric Unit and R & R CI820001: Caledon Ambulance Station - Communications Centre Extension TOTAL Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 35

36 HUMAN SETTLEMENTS 2017/18 MTEF: R209.0 million Project Description 2017/ / /20 Total MTEF ISSP Botrivier New France (248 sites) UISP ISSP Caledon Site Saviwa 3 Riemvasmaak (1017 sites) UISP Villiersdorp Destiny Farm (2305 services units) IRDP - (391 units) FLISP ISSP Grabouw Rooidakke Extension (2117 sites) IRDP Caledon Sidesaviwa (220 units) IRDP Grabouw Hillside (438 red 357 services) UISP Riviersonderend Erf 289 Phase 1 (135 services) UISP xx - Villiersdorp Farm 24 West Side (195 services) UISP xx - Riviersonderend Erf 289 Phase 1 (70 units) IRDP Riviersonderend Erf 289 Phase 1 (70 units) UISP PHP Grabouw Rooidakke (1169 services) UISP xx - Grabouw Rooidakke Extension (Bulk Infrastructure - Stormwater) IRDP xx - Botrivier New France (248 services) UISP xx - Villiersdorp Destiny Farm (1914 units) IRDP xx - Villiersdorp Destiny Farm (2305 services) IRDP xx - Grabouw Hillside (220 units) UISP PHP xx01 - ISSP Grabouw Rooidakke Extension (2117 services) IRDP xx01 - ISSP Caledon Site Saviwa 3 Riemvasmaak (1017 services) UISP Grabouw Rooidakke - Rainbow (1169 units) UISP PHP TOTAL Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 36

37 Provincial Infrastructure Projects: Housing Hillside Housing Project Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 37

38 Provincial Infrastructure Projects: Housing Hillside Housing Project Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 38

39 Provincial Infrastructure Projects: Housing Rooidakke Extension, Grabouw Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 39

40 Provincial Infrastructure Projects: Housing Rooidakke Extension, Grabouw Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 40

41 Provincial Infrastructure Projects: Housing Rooidakke Extension, Grabouw Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 41

42 TRANSPORT 2017/18 MTEF: R171.0 million Project Description 2017/ / /20 Total MTEF C1030 Caledon-Bredasdorp reseal C1093 PRMG N2-Villiersdorp C1088 PRMG Standford-Riviersondered reseal C984 PRMG Grabouw-Villiersdorp reseal TOTAL Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 42

43 Provincial Infrastructure Projects: Road Transport Hemel en Aarde Valley Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 43

44 Provincial Infrastructure Projects: Road Transport Hemel en Aarde Valley Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 44

45 Provincial Infrastructure Projects: Road Transport Hemel en Aarde Valley Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 45

46 Municipal Infrastructure Spend

47 2017/18 Capital Budget (A5) Functional Area Overberg District Overstrand Swellendam Theewaterskloof Cape Agulhas Governance and administration Community and public safety Economic and environmental services Trading services Other TOTAL Transfers recognised Public Contributions and Donations Borrowings Internally generated funds DORB MIG Allocation Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 47

48 2017/18 Asset Management (A9) Functional Area Overberg District Overstrand Swellendam Theewaterskloof Cape Agulhas Total New Assets Total Renewal of Existing Assets Total Upgrading of Existing Assets TOTAL R&M as a % of PPE 185,5% 4,9% 6,0% 11,4% 14,5% Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 48

49 Theewaterskloof Municipality Top /18 Capital Projects (SA36) Functional Area 1 Housing Description Low Cost Housing Project: Grabouw Rooidakke Stormwater 2017/18 R /19 R /20 R Water Drought Relieve Sanitation Bulk outfall sewer Roads Destiny access road Electricity Upgrading of Bulk Electrical Infrastructure Sanitation Waste Water Treatment Works Upgrade Roads Stormwater Upgrade Sanitation Bulk outfall sewer Housing 10 Housing Low Cost Housing Project: Grabouw Rooidakke (1169) Phase 5 Low Cost Housing Project: Grabouw Rooidakke (1169) Phase Other TOTAL Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 49

50 Municipal Funded Projects: Botrivier Housing Project, construction of road infrastructure Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 50

51 Municipal Funded Projects: Botrivier Housing Project, construction of road infrastructure Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 51

52 Municipal Funded Projects: Botrivier Housing Project, construction of road infrastructure Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 52

53 Municipal Funded Projects: Expansion of the Chavonnis Cemetery Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 53

54 Municipal Funded Projects: Pump upgrade, Tesselaarsdal Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 54

55 Municipal Funded Projects: Tesselaarsdal Storm water Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 55

56 Municipal Funded Projects: Gaffley Street, Grabouw Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 56

57 Municipal Funded Projects: Upgrade of the Greyton Waste Water Treatment Works Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 57

58 Municipal Funded Projects: Upgrade of Tessleaarsdal drop-off. Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 58

59 Municipal Funded Projects: Upgrade of Tessleaarsdal drop-off. Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 59

60 Broadband Infrastructure

61 Provincial Government Buildings Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 61

62 Broadband Infrastructure Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 62

63 Broadband Infrastructure Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 63

64 Number of WiFi site Municipality Sites Theewaterskloof 55 Overstrand 37 Cape Agulhas 27 Swellendam 27 TOTAL 146 Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 64

65 Phelophepa Train of Hope

66 Phelophepa Train of Hope Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 66

67 Phelophepa Train of Hope Western Cape Travel Schedule Town Date Beaufort West 31 July 4 August 2017 Beaufort West 7 11 August 2017 (Student Rotation) De Doorns August 2017 De Doorns August 2017 (Student Rotation) Oudtshoorn 28 August 1 September 2017 Oudtshoorn 4 8 September 2017 (Student Rotation) George September 2017 Saldanha Bay September 2017(Student Rotation) Saldanha Bay September 2017 Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 67

68 Conclusion

69 Concluding Remarks Slow economic growth + fiscal constraints expected to persist over the medium term. Municipalities should continue to apply fiscal discipline and practice prudent financial management in order to ensure long term financial sustainability and resilience. Careful consideration needs to be given to the efficiency of the staff establishment and the associated costs. If not managed strictly, this could result in additional pressure on the limited revenue sources. Circumstances make it essential for municipalities to reprioritise expenditure and implement stringent cost-containment measures in order to keep balance between sustainability and affordability. Internal revenue generating capacity: Hampers growth and development prospects. Strategic plans all provide sufficient projects and initiatives, matter of application. Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 69

70 Concluding Remarks Commend Municipality for unqualified audit outcomes; attests of good governance and accountability, willingness to pursue excellence. New planning cycle offers councils ideal opportunity to further build upon the culture of accountability, sound financial management and good governance practices. Servant leadership required to achieve higher levels of governance maturity. Financial efficiency will capacitate service delivery and infrastructure development function to the benefit of greater community. Spill-over effect will stimulate socio-economic development by unlocking inclusive growth potential within game changers and niche opportunities i.e. agri-processing, tourism, arts and culture, sport and recreation. Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 70

71 Support Mechanisms Legislative compliance: Guidance in terms of legislative prescripts (circulars, guidelines and regulations), provision of applicable reporting templates and frameworks. In-house support and advice: Hands-on, on-location involvement i.e. assistance in compiling quarterly performance reports, mscoa implementation, draft budget preparations (compilation of schedules, egap training. Formal budget and governance reviews: LG MTEC, MGRO 1& 2, mid-year assessments. Learning and training opportunities: Accredited training initiatives, interactive workshops and forums (MM Forum, CFO Forum, IDP Managers Forum), peer-to-peer engagements, preaudit PDO discussions. Financial support: Business plan development to qualify for Western Cape Financial Management Support Grant (WCFMSG) support. Economic intelligence: Research to inform municipal planning processes i.e. Provincial Economic Review and Outlook (PERO), Municipal Economic Review and Outlook (MERO), Socio-economic Profiles (SEP-LG). Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 71

72 Way Forward Provincial & Municipal Economic Review & Outlook Fiscal Policy Seminar Release of SEP-LG publications Budget Day Sep 2017 Tabling PERO/MERO 3 Nov 2017 Nov 2017 Bosberaad Feb 2018 Bosberaad Oct 2017 Oct 2017 PG MTEC 1 Strategic National Integrated MTBPS Municipal Engagements Nov 2017 Tabling Adjusted Budget/MTBPS Jan 2018 PG MTEC 2 Feb 2018 SOPA Mar 2018 Tabling Budget May 2018 Strategic Integrated Budgeting Engagement WC Medium Term Budget Policy Statement and Adjusted Estimates Planning, Budgeting and Implementation Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 72

73 Thank you New section heading