Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 1
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
Economic & Fiscal Reality
Improving Global Outlook Global growth outlook 10.0 8.0 6.0 4.0 2.0 - - 2.0 3.5 3.6 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 - 4.0-6.0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 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
South African macroeconomic performance and outlook Consumer spending Indicator 2016 2017f 2018f 0.8 0.6 1.4 Fixed investment -3.9-2.1-0.7 Gross domestic expenditure -0.8 0.4 1.0 Exports -0.1 1.2 1.7 GDP 0.3 0.3 0.9 CPI (ave) 6.3 5.3 5.1 PPI (ave) 7.1 5.0 5.1 Prime rate (eop) 10.50 10.50 10.50 Current account (% of GDP) -3.3-2.6-3.3 R/$ (ave) 14.71 13.27 13.99 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
Western Cape: Growth & Employment by District GDPR Growth Employment (Net change) District Trend Estimate Trend Estimate 2005-2015 2010-2015 2016 e 2005-2015 2010-2015 2016 e Cape Metro 2.9 2.5 0.9 267 913 172 457 9 210 Cape Winelands 3.3 2.9 0.5 67 738 67 844 3 103 Eden 3.2 2.7 0.7 38 595 32 078 50 West Coast 3.0 2.8-0.6 17 210 28 655 1 954 Overberg 3.6 3.1 0.6 24 913 23 303 727 Central Karoo 3.0 2.1-1.2 2 076 2 649 6 Total Western Cape 3.0 2.5 0.7 433 495 326 986 15 050 Western Cape Government 2012 Budget to the People: Theewaterskloof Municipality 6
Real GDPR growth trend by sector and district 2010 2015 (Average Growth pa, %) GDP Trend 2010-2015 Sector Western Cape Cape Metro West Coast Cape Winelands Central Karoo Eden Overberg Agriculture, forestry & fishing 2.7 4.1 2.2 1.7 1.1 1.3 1.1 Mining & quarrying 2.9 3.1 2.6 2.7 3.5 2.9 4.1 Manufacturing 1.1 1.2 1.3-0.4 2.3 1.9 3.0 Electricity, gas & water -0.3-0.5-1.4 1.1 1.3-0.5-0.2 Construction 2.9 2.8 2.6 4.8 1.9 1.3 3.1 Wholesale & retail trade, catering & accommodation Transport, storage & communication Finance, insurance, real estate & business services Community, social & personal services 2.9 2.7 3.5 4.2 2.3 2.8 4.0 2.4 2.2 1.1 3.6 0.3 3.2 4.0 3.3 3.0 3.6 4.7 2.6 4.2 3.9 2.0 1.8 3.2 3.0 2.4 2.2 2.9 General government 3.5 3.8 3.5 2.9 4.0 2.5 2.4 Total GDPR Growth 2.6 2.5 2.8 2.9 2.1 2.7 3.1 Western Cape Government 2012 Budget to the People: Theewaterskloof Municipality 7
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 0.35 2.45 4.90 1.40 2.64 3.90 Mining & quarrying 0.86 0.70 3.81 1.29 0.37 0.17 Manufacturing 0.98 1.03 1.42 0.94 0.87 0.17 Electricity, gas & water 1.05 0.78 0.69 1.08 0.88 1.94 Construction 0.95 1.17 0.88 1.17 1.35 0.96 Wholesale & retail trade, catering & accommodation Transport, storage & communication Finance, insurance, real estate & business services Community, social & personal services 0.98 1.07 0.90 1.06 1.12 0.87 1.04 0.88 0.76 0.92 1.0 1.40 1.09 0.78 0.46 0.97 0.79 0.43 1.04 1.11 0.91 1.01 0.99 1.42 General government 0.99 0.90 0.90 0.89 0.78 1.80 Western Cape Government 2012 Budget to the People: Theewaterskloof Municipality 8
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
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 33.87 58.19 Berg River Catchment 44.28 67.67 Breede River Catchment 31.64 54.68 Gouritz River Catchment 17.38 46.70 Olifants/Doorn River Catchment 36.39 99.26 Western Cape state of dams 32.73 59.48 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
Credit Rating Downgrades
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 2017. 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
Sub-investment: What does this mean for South Africa? Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 13
Budget Policy
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
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
Provincial Strategic Plan 2014-2019 Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 17
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
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 90-90-90 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
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
2017 Provincial Budget: Overview
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
Theewaterskloof: Payments and Estimates VOTE Revised Estimate 2016/17 R 000 2017/18 R 000 2018/19 R 000 2019/20 R 000 Community Safety 481 547 574 603 Education 366 071 387 553 408 715 430 487 Health 122 053 141 830 150 089 158 134 Social Development 8 912 9 465 10 023 10 584 Human Settlements 41 577 72 621 62 200 74 150 Transport and Public Works 70 486 90 899 20 997 71 193 Agriculture 5 702 5 531 5 852 6 180 Cultural Affairs and Sport 7 535 6 718 7 021 2 181 Local Government 530 523 546 580 TOTAL 623 347 715 687 666 017 754 092 Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 23
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
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
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
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
Overberg District Total Infrastructure 2017/18: R416.0 million Functional Area Overberg District Theewaterskloof Overstrand Swellendam Cape Agulhas Cape Nature - - 16 961 - - Education - 40 000 25 000 - - Health - 352 1 300 1 000 10 879 Human Settlements - 72 621 31 670 3 350 20 450 Public Works - - - - - Transport 89 383 87 000 13 000 1 000 2 000 Social Development - - - - - TOTAL 89 383 199 973 87 931 5 350 33 329 Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 28
THEEWATERSKLOOF Provincial Infrastructure Spend
Theewaterskloof Total Infrastructure 2017/18 MTEF: R474.4 million Functional Area 2017/18 2018/19 2019/20 TOTAL Cape Nature - - - - Education 40 000 22 380 Health 352 1 050 18 125 12 500 80 505 13 902 Human Settlements 72 621 62 200 74 150 208 971 Public Works - - - - Transport 87 000 17 000 67 000 171 000 Social Development - - - - TOTAL 199 973 102 630 171 775 474 378 Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 30
EDUCATION 2017/18 MTEF: R80.5 million Project Description 2017/18 2018/19 2019/20 Total MTEF Swartberg Primary School - - 2 000 2 000 Umyezo Wama Apile Primary School 15 000 9 000 15 125 39 125 Umyezo Wama Apile SS (Grabouw SS) 25 000 13 380 1 000 39 380 TOTAL 40 000 22 380 18 125 80 505 Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 31
Provincial Infrastructure Projects: Education Construction of new Umyezo Wama Apile High School, Grabouw Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 32
Provincial Infrastructure Projects: Education Construction of new Umyezo Wama Apile High School, Grabouw Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 33
Provincial Infrastructure Projects: Education Construction of new Umyezo Wama Apile High School, Grabouw Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 34
HEALTH 2017/18 MTEF: R13.9 million Project Description 2017/18 2018/19 2019/20 Total MTEF CI820027: Villiersdorp Ambulance Station Replacement 50 300-350 CI810095: Villiersdorp Clinic Replacement 1 250 1 000 1 251 CH810022: Gansbaai Clinic - HT - Upgrade and Additions - - 1 500 1 500 CI830123: Caledon Hospital - Acute Psychiatric Unit and R & R 1 500 5 000 5 501 CI820001: Caledon Ambulance Station - Communications Centre Extension 300-5 000 5 300 TOTAL 352 1 050 12 500 13 902 Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 35
HUMAN SETTLEMENTS 2017/18 MTEF: R209.0 million Project Description 2017/18 2018/19 2019/20 Total MTEF 3192 - ISSP Botrivier New France (248 sites) UISP 500 - - 500 3266 - ISSP Caledon Site Saviwa 3 Riemvasmaak (1017 sites) UISP 1 500 - - 1 500 3248 - Villiersdorp Destiny Farm (2305 services - 1914 units) IRDP - (391 units) FLISP 2 000 - - 2 000 3522 - ISSP Grabouw Rooidakke Extension (2117 sites) IRDP 3 131 - - 3 131 2015-1092 - Caledon Sidesaviwa (220 units) IRDP4 3 840 - - 3 840 2043-1094 - Grabouw Hillside (438 red 357 services) UISP - 2 500 2 500 5 000 3193-01 - Riviersonderend Erf 289 Phase 1 (135 services) UISP 7 000 - - 7 000 3524-xx - Villiersdorp Farm 24 West Side (195 services) UISP - - 7 650 7 650 3193-xx - Riviersonderend Erf 289 Phase 1 (70 units) IRDP4-8 400 8 400 3193-02 - Riviersonderend Erf 289 Phase 1 (70 units) UISP PHP 5 400 3 000 8 400 2043-1093 - Grabouw Rooidakke (1169 services) UISP 9 750 - - 9 750 3522-xx - Grabouw Rooidakke Extension (Bulk Infrastructure - Stormwater) IRDP 10 000 - - 10 000 3192-xx - Botrivier New France (248 services) UISP - 11 300 11 300 3248-xx - Villiersdorp Destiny Farm (1914 units) IRDP - - 2 000 12 000 3248-xx - Villiersdorp Destiny Farm (2305 services) IRDP - 5 000 10 000 15 000 3262-xx - Grabouw Hillside (220 units) UISP PHP 3 000 6 000 6 000 15 000 3522-xx01 - ISSP Grabouw Rooidakke Extension (2117 services) IRDP - 7 000 12 000 19 000 3266-xx01 - ISSP Caledon Site Saviwa 3 Riemvasmaak (1017 services) UISP 2 500 7 000 12 000 21 500 2043-1119 - Grabouw Rooidakke - Rainbow (1169 units) UISP PHP 24 000 12 000 12 000 48 000 TOTAL 72 621 62 200 74 150 208 971 Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 36
Provincial Infrastructure Projects: Housing Hillside Housing Project Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 37
Provincial Infrastructure Projects: Housing Hillside Housing Project Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 38
Provincial Infrastructure Projects: Housing Rooidakke Extension, Grabouw Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 39
Provincial Infrastructure Projects: Housing Rooidakke Extension, Grabouw Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 40
Provincial Infrastructure Projects: Housing Rooidakke Extension, Grabouw Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 41
TRANSPORT 2017/18 MTEF: R171.0 million Project Description 2017/18 2018/19 2019/20 Total MTEF C1030 Caledon-Bredasdorp reseal 2 000 - - 2 000 C1093 PRMG N2-Villiersdorp - - 25 000 25 000 C1088 PRMG Standford-Riviersondered reseal - - 40 000 40 000 C984 PRMG Grabouw-Villiersdorp reseal 85 000 17 000 2 000 104 000 TOTAL 87 000 17 000 67 000 171 000 Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 42
Provincial Infrastructure Projects: Road Transport Hemel en Aarde Valley Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 43
Provincial Infrastructure Projects: Road Transport Hemel en Aarde Valley Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 44
Provincial Infrastructure Projects: Road Transport Hemel en Aarde Valley Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 45
Municipal Infrastructure Spend
2017/18 Capital Budget (A5) Functional Area Overberg District Overstrand Swellendam Theewaterskloof Cape Agulhas Governance and administration 90 2 705 898 6 862 2 962 Community and public safety 1 005 26 908 4 053 38 382 3 164 Economic and environmental services 126 7 460 4 399 10 904 12 859 Trading services - 60 575 9 460 52 789 8 680 Other - - - - - TOTAL 1 221 97 648 18 810 108 936 27 665 Transfers recognised 800 47 840 14 810 61 805 12 969 Public Contributions and Donations - - - - - Borrowings - 30 000-32 244 5 661 Internally generated funds 421 19 808 4 000 14 887 9 034 2017 DORB MIG Allocation - 22 330 12 067 26 833 11 118 Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 47
2017/18 Asset Management (A9) Functional Area Overberg District Overstrand Swellendam Theewaterskloof Cape Agulhas Total New Assets 877 54 626 15 120 65 934 9 579 Total Renewal of Existing Assets 344 11 280 856 7 109 6 215 Total Upgrading of Existing Assets 31 742 2 834 35 894 11 870 TOTAL 1 221 97 648 18 810 108 936 27 665 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
Theewaterskloof Municipality Top 10 2017/18 Capital Projects (SA36) Functional Area 1 Housing Description Low Cost Housing Project: Grabouw Rooidakke Stormwater 2017/18 R 000 2018/19 R 000 2019/20 R 000 10 000 - - 2 Water Drought Relieve 9 298 - - 3 Sanitation Bulk outfall sewer 6 194 2 632 1 750 4 Roads Destiny access road 5 159 3 947-5 Electricity Upgrading of Bulk Electrical Infrastructure 4 500 - - 6 Sanitation Waste Water Treatment Works Upgrade 4 366 - - 7 Roads Stormwater Upgrade 4 035 439 1 000 8 Sanitation Bulk outfall sewer 3 405 - - 9 Housing 10 Housing Low Cost Housing Project: Grabouw Rooidakke (1169) Phase 5 Low Cost Housing Project: Grabouw Rooidakke (1169) Phase 5 3 250 - - 3 250 - - Other 55 479 40 209 52 188 TOTAL 108 936 47 226 54 938 Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 49
Municipal Funded Projects: Botrivier Housing Project, construction of road infrastructure Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 50
Municipal Funded Projects: Botrivier Housing Project, construction of road infrastructure Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 51
Municipal Funded Projects: Botrivier Housing Project, construction of road infrastructure Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 52
Municipal Funded Projects: Expansion of the Chavonnis Cemetery Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 53
Municipal Funded Projects: Pump upgrade, Tesselaarsdal Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 54
Municipal Funded Projects: Tesselaarsdal Storm water Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 55
Municipal Funded Projects: Gaffley Street, Grabouw Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 56
Municipal Funded Projects: Upgrade of the Greyton Waste Water Treatment Works Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 57
Municipal Funded Projects: Upgrade of Tessleaarsdal drop-off. Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 58
Municipal Funded Projects: Upgrade of Tessleaarsdal drop-off. Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 59
Broadband Infrastructure
Provincial Government Buildings Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 61
Broadband Infrastructure Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 62
Broadband Infrastructure Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 63
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
Phelophepa Train of Hope
Phelophepa Train of Hope Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 66
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 14 18 August 2017 De Doorns 21 25 August 2017 (Student Rotation) Oudtshoorn 28 August 1 September 2017 Oudtshoorn 4 8 September 2017 (Student Rotation) George 11 15 September 2017 Saldanha Bay 18 22 September 2017(Student Rotation) Saldanha Bay 25 29 September 2017 Western Cape Government 2013 Budget to the People: Theewaterskloof Municipality 67
Conclusion
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
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
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
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
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