BUDGET 2013/14

The budget of the district municipality consists of two main revenue streams i.e. government grants and interest earned on external investments. 71 positions on the organogram are directly and / or indirectly involved in support to local municipalities to the estimated amount of R15,19m or 28,83% of the total employee related costs budget.

The municipality employed 30 interns to the estimated amount of R1,90m. This includes five finance interns, which is compulsary in terms of the financial managment grant.

The district municipality is experiencing a major decline in its revenue base as its revenue has increased by only 3.3% from the previous year. Contribution from reserves to fund infrastructure projects drastically declined with regard to the outer years as the district municipality will not be able to sustain the high level reserve funding.

The district municipality gives direct funding to the local municipalities, which was informed by the community needs as captured in each municipal Integrated Development Plan (IDP). The district municipality does not generate its own revenue and is restricted on the allocation received from equitable share

Basic services focus areas

  • • Reduction of water, sanitation electricity, street & storm water & community facilities backlog
  • • Assist LM’s to perform its responsibility with the provision of basic services
  • • Operation & Maintenance
  • • Housing function accreditation & implementation

Support given to local municipalities

The planning and development department of the district municipalities provides assistance to its local municipalities with the preparation and implementation of Integrated Development Plans (IDPs). The department facilitates strategic planning, supporttown and regional planning, promote the development of geographic information systems (GIS) in category B municipality provides administrative support in areas such as financial management, technical project support and audit functions.

The disaster management unit of the ditrict municipality provides support with the implementation and review of disaster management plans. The district municipality developed municipal and environmental by-laws which will a legal and administrative framework within which municipal health obligations can be developed and regulated.

Key factors

  • • Grants makes up 94% of the revenue base and interest on external investment 5%.
  • • The main cost drivers for the municipality are salaries and grants.
  • • The district municipality relies heavily on grant funding as its main source of revenue
  • • More than 40% of the entire budget of the district municipality is committed towards the support of the local municipalities

Support to local municipalities:

  • • Salaries of employees involved in support amounts to R15,19m
  • • Operations & maintenance of infrastructure amounts to R9,66m
  • • Capital funding amounts to R11,95m
  • • Other Social economic related projects amounts to ±R 6,89m

Budget

  • • Operational = R121,16m
  • • Capital = R 4,29m.
  • • Largest portion of the budget allocated to Planning & Development and Infrastructure Services = R42,94m municipalities and ensure sustainable development of the district economy through its LED unit. The district

At a glance: Activities & projects implemented in 2012/13

Infrastructure

An allocation of R21,802,000.00 was made to Category B Municipalities for capital projects. Eleven (11) projects in the local municipalities were funded by this allocation. In Dikgatlong municipal area R6.4m was spent on the Barkly West Treatment Works, the construction of roads in De Beershoogte and procurement of sanitation trucks. In Phokwane R6.2m was spent to construct a 2km paved road with stormwater drainage for Ganspan and a electricity master plan for the municipality. In Magareng R6.1m was spent on a water reticilation network for 558 sites in Warrenvale, general upgrading of the water network, provision of water and electricity meters to 350 households and and electricity master plan for the municipality. In Sol Plaatje R3.07m was spent on water and sanitation provision to 150 households in Freedom Park.

An amount of R8.3m was allocated to category B municipalities for operation and maintenance in areas such as dry sanitation systems, streets and storm water, electrical networks and water and waste water infrastructure. R250,000 was also allocated for projects in rural areas to provide basic services such as toilets and water connections.

Spatial planning

An integrated zoning scheme was developed for Phokwane Municipality to regulate, control and facilitate the land development to ensure effective land use management.A topographical survey has been completed for:

  • • the extention of Kingston settlement
  • • areas in Barkly West where a floodline study was also completed

Geographic Information System

The land audit geodatabase was updated for all local municipalities in Frances Baard district and a meter reading project was completed for Magareng municipality. The municipality’s billing database was assessed to provide it with a sound basis for revenue generation.

Fire Fighting and Disaster Management

An amount of R500,000 was spent on reviewing the district disaster management plan as well as the development of plans for each of the local municipalities. A fire engine was also purchased to the amount of R2.1m to fight veld fires, structural fires, motor vehicle accidents and hazardous incidents in the smaller municipalities in the district. R91,000 was also spent on continued volunteer training.

Housing

An amount of R693,000 was spent on assisting the Phokwane, Magareng and Dikgatlong municipalities with the review of their housing sector plans, housing chapters and housing strategies.

In Magareng a target of 200 housing units for 2012/13 was set of which 181 was completed. Of the overall identified 1000 units for Magareng 426 in total have been completed and handed over to beneficiaries translating to 43% overall progress.

The Pampierstad 1,422 households project which commenced in 2011/12, saw the successful completion of 700 units. The Kingston 685 housing project commenced with the installation of services to the area in the 2012/13 financial year. This phase was completed and the construction of houses will start in the 2013/14 financial year.

In Dikgatlong the De Beershoogte 552 housing project started with construction on the next phase of the project. Progress to date is: superstructures – 41; roofs – 41; foundation floor slabs – 9. The Barkly West Buffer Zone Development continued with the improvement of the area for 220 erven.

Tourism

A tourism asset audit was successfully completed and a tourism database was developed for all tourism assets within the district. R126,000 was also spent on a tourism route feasibility and business plan.

Local economic development

An amount of R472,000 was spent on the annual LED Expo. The objective of the expo is to connect, mentor and engage with entrepreneurs, academics, private sector, small business agencies, financial institutions and government in paving a growth path for enterprise development.

R450,000 was spent on SMME development and registration. Through this programme SMMEs that showed potential were assisted to employ more people and become sustainable. Eight SMMEs were identified and were assisted with material and equipment.

R200,000 was spent on supplying electricity to the Ritchie incubation centre to ensure that it becomes fully operational and thus would enable SMMEs to start with their operations.

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