Revenue Masterclass Strategic Framework for Financial Viability
Linking the Budget to DP
Developmental challenges City s vision frica s most caring and livable City Digital divide Densification Public transport Key choices Ports and Logistics Sustainability Resource management Successful City Employment, growing local economy, BEE, SMME Poverty/education Programmes to reduce increased poverty Smart City ccess to info and knowledge Eco tourism Caring City Customer based city Democratic & equal city Non sexism and tolerant citizenry Ecological integrity
City s Developmental pproach Vision Values, challenges and development principles 8 Point Plan Strategic focus areas Programmes Projects
he DP s Strategic Driver Within the Long erm Planning framework, the DP drives the way we PRORSE DEVELOPMEN, BUDGE and MESURE OUR PERFORMNCE CY S SREGY Done Once in Five Years Reviewed nnually DP CY S FNNCL LLOCON O SREGY Done annually with a three year projection BUDGE CY S NNUL DELVERY PLN Done annually to manage delivery SDBP CY S REPOR Done annually to publicly report on progress NNUL REPOR CY S PERFORMNCE MONORNG SYSEM PERFORMNCE MNGEMEN SYSEM
P er fo r m a n c e Pl a n ni n g W R D C O M M E E S P U B L C P R C P O N he ntegrated Development Plan (8 Point Plan) Organisational Performance Management Linked to the 5 National Key Performance rea's: 1. Basic Service Delivery 2. Local Economic Development 3. Governance and Public Participation 4. Municipal ransformation and Organisational Development 5. Municipal Financial Viability and Management ND Which measures delivery on the Strategic Focus reas in terms of Programmes in the DP. Department Objectives / Business Plans/SDBP- Projects and Subprojects ndividual Objectives and ndividual Performance greements/plans P U B L C P R C P O N W R D C O M M E E S M e a s u ri n g P e r f o r m a n c e
MUNCPL CCOUNBLY 5 year Strategy DP CYCLE hree year Budget Budget nnual Plan to mplement SDBP n - year Reporting n - year Reporting Monitoring nnual Financial Statements Oversight Reports nnual Report
he Various Levels of Planning within the City Each level of planning is distinguished by the nature of the process and output but is integrated through a clear system of alignment. Responsible Process Outputs O R G N S O N L Strategic Planning Service Delivery Budget mprovement Plan City Manager Departments and Entities lignment of the City s nnual Plan to Political Priorities and Growth and Development Strategy Departmental lignment to Overall DP (Head Performance Contract DP Departmental SDBP Unit Heads Performance greements D E P R M E N L Business Plan (Departments) Departments Development of Business Plans to deliver against he SDBP Business Plans Performance greements For Managers
Business Plan Business Planning How does this Business Plan relate to the DP/SDBP? DP/SDBP Where we expect to be at the end of year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 5 What will we do this year towards achieving the overall the intermediate and ultimate outcomes of the DP/SDBP
he planning to budget link
Stages for Managing for Results LDF DP/SDBP Getting feedback from Key Stakeholders Using performance information and results Strategic Leadership and Governance ccountability Matrix Budgeting Reporting on performance information and results Monitoring and Measuring Results
SREGY RESULS CYCLE LDF Organisational Results Measurement Determine the Key Strategic Priorities mplementation & process monitoring (inputs, outputs) Develop Business Plans Resource Needs, Funding Select Principal nterventions Development of DP/SDBP
Organisational Performance Monitoring t is also necessary to establish processes to ensure all major organisational components of the city are integrated into an overall organisational monitoring and reporting framework. Quarterly Monthly Report against SDBP Report gainst Head Performance greement Report against Business Plan Report gainst Managers Performance greements Departments Departments Consolidated Report that Measures Organisational Performance against DP /SDBP argets
DP PLNS Develop and Sustain our Spatial, Natural and Built Environment Developing a Prosperous, Diverse Economy and Employment Creation Creating a Quality Living Environment Fostering a Socially Equitable Environment Creating a Platform for Growth, Empowerment and Skills Development Embracing our cultural diversity, arts and heritage Good Governance and Responsive Local Government Financially ccountable and Sustainable City Operating Budget 373,486 2011/12 Rm Capital Budget 551,891 581,339 15,497,149 3,986,095 1,223,158 48,087 103,210 Operating Budget 2012/13 Rm Capital Budget Operating Budget Year 2013/14 Rm Capital Budget 2,000 397,056 2,700 423,496 11,000 10,000 400,370 1,700 1,175,884 129,246 1,894,265 324,129 579,699 628,303 608,456 916,000 17,749,427 4,160,492 20,851,565 4,931,287 1,271,279 63,300 1,379,137 72,957 107,072 429,360 0 2,057 112,424 0 455,447 6,500 1,210,832 111,802 1,245,717 184,560 2,096,983 234,906 2,215,730 343,518
HE BUDGE CYCLE Budget implementation 7 Budget preparation process 1 Publication of approved annual budget 6 Budgets from the municipal entities are submitted as part of the annual municipal budget. abling of draft budget 2 pproval of annual budgets 5 Consultation on tabled budget 4 Publication of draft annual budget 3
BUDGENG PRNCPLES Balanced Sustainable Realistic / credible ncome driven Holistic account for basket of goods and services provided 16
SREGC PRNCPLES Return on investment Maximize current infrastructure investment Use Value Filters in DP Sustainability Balancing capital expenditure for social, economic, rehabilitation and support (including fleet and ) Social housing impact on free basic services Need to ensure rates base growth to ensure sustainability of free basic services Energy efficiency and green economy ncrease in informal settlements nvestigate feasibility of a minimum service charge for residents Cost reflective / economic tariffs 17
OUCOMES Densification optimal use of infrastructure mproved spatial planning nodal development ransport corridors More efficient integration of rail and road Job creation ffordability of services Retain and increase growth in businesses Move from a housing driven development to economic driven development Urban migration control Establish Land Bank dentify land for future development 18
BUDGE MONORNG OVERSGH Council ssess and adjust Policy Development Strategic Planning dentify desired impacts Specify performance indicators End year reporting NSUON Municipality / Municipal Entity Operational planning & Budgeting Monitor and take corrective action mplementation and n-year reporting Set targets and allocate resources
OHER KEY SSUES Split between economic, social and rehabilitative Community participation ward committee structure Political will councillors in office only for a term Governance credit rating places a premium on this Energy issues triple bottom line sustainablity and growth 20
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