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2 $ % &' ( &) * &) $!# * *) +, 2.1 The Purpose of Integrated Development The Legal Status of the IDP Timeframe for Completion The similarity between Integrated Development Planning and Strategic Planning Responsibility to Manage the Process The Core Planning Components of the IDP Who should Participate The Roles and Responsibilities of the Different Spheres of Government Planning and Implementation Management Support Systems (PIMSS) 7 -) $+. + # " # / 3.1 Focused and Proactive Management Institutional Analysis Matching Resources to Needs Project Management Performance Management Realistic Planning Unification and Consensus Building Empowerment of Stakeholders Focused Budgeting Change Agent 11,) 0 &* 4.1 Legal Requirements Ward Committees Vehicles for Participation Council Meetings Communication Regulations 19 *' ( *) &).. *& *& *). %1! -2 -' ( -) % 3,4 &),4 *). &)..,5 2.1 Legal Framework Analysis Leadership Guidelines Community and Stakeholder Analysis Municipality Technical Analysis Institutional Analysis Economic Analysis Socio-Economic Analysis Spatial Analysis Environmental Analysis In-depth Analysis and Consolidation of Key Development Priorities and Planning Guidelines 59

3 -). *) #. 4& 3.1 Introduction Vision, Mission and Value System GAP Analysis and Strategies Link Key Performance Areas and Development Objectives to Sectoral Departments 67,). -) Introduction Performance Management Five Year Sectoral Operational Business Plans 84 7).,) # /7 5.1 Integration of Processes Institutional Restructuring (Transformation) Integrated Communication Plan 104 4). 7) ",' (,) &) $.... *) $#. -) #9 " "1# #,) # &&* &&2 &&2 &*8 &*5 &-8 ANNEXURES: General Annexures A : Legal Framework B : National Legislation applicable to the functions of local government C : Community and Stakeholder Analysis/Municipality Technical Analysis D : Capital Investment Project Prioritisation Model

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5 2 &) & $; During the past few decades, the business community realised that in order to control its destiny in a changing political, economic and technological environment, more structured formalised planning is required. The type of comprehensive planning developed for a business is known as strategic planning. Municipalities have recently adopted integrated development planning as a vital tool for planning and development. In 1995 the Forum for Effective Planning and Development (FEPD) defined Integrated development planning as: A participatory approach to integrate economic, sectoral, spatial, social, institutional, environmental and fiscal strategies in order to support the optimal allocation of scarce resources between sectors and geographical areas and across the population in a manner that provides sustainable growth, equity and the empowerment of the poor and the marginalised. In order to ensure that available resources are optimally utilised towards the promotion of sustainable economic and social development, with the focus on viable service delivery, municipalities must implement the IDP process. Prior to 1994, local government was mainly concerned with service provision and the implementation of regulations. However, with the introduction of the new Constitution and new legislative and policy frameworks, the role of local government expanded to a large extent. Municipalities are now required to be developmental in their approach and activities. The value of integrated development planning for municipalities is embedded in the formulation of focused plans that are based on developmental priorities. This approach will assist with the curbing of wasteful expenditure and perpetual past spending patterns. Thus, the adoption of a more business-orientated approach is not aimed at running a municipality like a profit-bound company, but rather to ensure that scarce resources are allocated and spent effectively. Section 152 of the Constitution: (1) The objects of local government are (a) to provide democratic and accountable government for local communities; (b) to ensure the provision of services to communities in a sustainable manner; (c) to promote social and economic development; (d) to promote a safe and healthy environment; and (e) to encourage the involvement of communities and community organisations in the matters of local government. (2) A municipality must strive, within its financial and administrative capacity, to achieve the objects set out in subsection (1). In addition to ensuring that all citizens have access to at least a minimum level of basic services, municipalities must now also take a leading role in addressing poverty and inherited inequities, and in promoting local economic and social development and democracy. Thus, service delivery should not merely be aimed at present demands, but municipalities are also required to make informed projections about and anticipate future demands in order to ensure effective, efficient and sustained service delivery over the short, medium and long term.

6 3 Municipalities are now also required to align with the provincial and national spheres of government in the delivery of national and provincial developmental programmes at local level. Furthermore, municipalities have to incorporate a wide range of sectoral programmes (e.g. water, health and small business development) into their own municipal development programmes, and also comply with the requirements of a variety of national legislation aimed at facilitating development. The above are some of the key elements of the IDP process that should be implemented by municipalities. Section 153 of the Constitution: A municipality must (a) structure and manage its administration, and budgeting and planning processes to give priority to the basic needs of the community, and to promote the social and economic development of the community; and (b) participate in national and provincial development programmes. Local government should incorporate strategic business principles in its planning and management activities, in order to fulfil its prescribed developmental role. Such development should be aimed at the optimisation of available resources to alleviate poverty and promote sustained economic and social development. This Guide is intended to serve as a supportive tool for municipalities in respect of the IDP process. It is thus important to note that the Guide does not cater for unique situations, but that it merely serves as a general reference framework for municipalities. Furthermore, this Guide is not intended to replace the IDP Guide Pack issued by the Department Provincial and Local Government (DPLG). Instead, it strives to add value to the IDP Guide Pack and the process per se by providing practical methodological guidance to all role-players involved. It is intended to be supportive rather than prescriptive in nature. It aims to build capacity of those local government bodies which do not possess the skills and know-how to undertake the process independently, as well as to provide some ideas and practical guidance to those who are already engaged in the IDP process. The IDP Guide Pack and its contents were primarily utilised as source in compiling this Guide. The same generic processes, terminology and in some instances unaltered portions of the Guide Pack have been included.

7 * 4 % *'&. + # " # Integrated development planning is a process through which municipalities prepare a strategic development plan which extends over a five-year period. The Integrated Development Plan (IDP) is a product of the IDP process. The IDP is the principal strategic planning instrument which guides and informs all planning, budgeting, management and decision-making processes in a municipality. Through Integrated development planning, which necessitates the involvement of all relevant stakeholders, a municipality can: Identify its key development priorities; Formulate a clear vision, mission and values; Formulate appropriate strategies; Develop the appropriate organisational structure and systems to realise the vision and mission; and Chapter 5 Municipal Systems Act Section 25(1) 25.(1) Each municipal council must, within a prescribed period after the start of its elected term, adopt a single, inclusive and strategic plan for the development of the municipality which (a) links, integrates and co-ordinates plans and takes into account proposals for the development of the municipality; (b) aligns the resources and capacity of the municipality with the implementation of the plan; (c) forms the policy framework and general basis on which annual budgets must be based; (d) complies with the provisions of this Chapter; and (e) is compatible with national and provincial development plans and planning requirements binding on the municipality in terms of legislation. align resources with the development priorities. *'* #. + In terms of the Systems Act, all municipalities (i.e. metropolitan, district and local) have to undertake an IDP process to produce IDP s. As the IDP is a legislative requirement it has a legal status and it supersedes all other plans that guide development at local government level. *'- + + Integrated development planning is a very interactive and participatory process which requires the involvement of a number of stakeholders. Because of its participatory nature it takes a municipality approximately 6 months to complete an IDP and this timing is closely related to the municipal budgeting cycle. However, during this period delivery and development is not at a stand still, but continues. The IDP is reviewed annually, which results in the amendment of the plan should this be necessary.

8 5 *',. 01 # " # # # In essence the IDP process and strategic planning are synonymous, even though the public and private sectors use different terms to refer to the process. Quintessentially this planning process serves as a management tool that enables a municipality to determine the broad strategic view of its development requirements and address all key issues holistically. *'7..0 #.. The IDP process does not only entail spatial planning, and therefore the management and implementation thereof should not be delegated to the municipal planning department or to consultants. It is a mechanism to manage the affairs of a municipality and its municipal area, and hence occupies a very high status within a municipality. In terms of the Municipal Systems Act, 2000, (Systems Act) the chairperson of the executive committee or executive mayor or the chairperson of the committee of appointed councillors has the responsibility to manage the drafting of the IDP or to assign this responsibility to the municipal manager. The municipal manager is responsible for the implementation and monitoring of the IDP process. Municipal Systems Act, 2000, Sections 30 and 55(1):- 30. The executive committee or executive mayor of a municipality or, if the municipality does not have an executive committee or executive mayor, a committee of councillors appointed by the municipal council, must, in accordance with section 29 (a) manage the drafting of the municipality s integrated development plan; (b) assign responsibilities in this regard to the (c) municipal manager; and submit the draft plan to the municipal council for adoption by the council. 55.(1) As head of administration the municipal manager of a municipality is, subject to the policy directions of the municipal council, responsible and accountable for (a) the formation and development of an economical, effective, efficient and accountable administration (i) equipped to carry out the task of implementing the municipality s integrated development plan in accordance with Chapter 5; and (ii) operating in accordance with the municipality s performance management system in accordance with Chapter 6. *'4 #. + In a nutshell, the IDP process entails an assessment of the existing level of development and the identification of key development priorities. The vision and mission statements for long term development flow from the aforesaid, with specific reference to critical developmental and internal transformational needs. The development strategies and objectives will be directed at bridging the gap between the existing level of development and the vision and mission. A very critical phase of the IDP process is to link planning to the municipal budget (i.e. allocation of internal or external funding to the identified projects), because this will ensure that the IDP directs the development and implementation of projects. Municipal Systems Act, 2000, Section 26:- 26. An integrated development plan must reflect (a) the municipal council s vision for the long term development of the municipality with special emphasis on the municipality s most critical development and internal transformation needs; (b) an assessment of the existing level of development in the municipality, which must include an identification of communities which do not have access to basic municipal services; (c) the council s development priorities and objectives for its elected term, including its local economic development aims and its internal transformation needs; (d) the council s development strategies which must be aligned with any national or provincial sectoral plans and planning requirements binding on the municipality in terms of legislation; (e) a spatial development framework which must include the provision of basic guidelines for a land use management system for the municipality; (f) the council s operational strategies; (g) applicable disaster management plans; (h) a financial plan, which must include a budget projection for at least the next three years; and (i) the key performance indicators and performance targets determined in terms of section 41.

9 6 *'2 <. = >?. Councillors have to play a leading role in the IDP process. The IDP is not only a mechanism through which they have to make decisions, it also contains their constituencies needs and aspirations. Therefore, councillors have to participate in this process to ensure that their communities issues are well reflected and addressed. >0? ++. The IDP is not a function of the municipality s planning department. Everything that the municipality and its departments do, has to be guided by the IDP. As a result, all departments have to be directly involved in the IDP process. >?!. The purpose of the IDP process is to determine the needs and priorities of a municipality s stakeholders and community which should be addressed towards improving the quality of life in respect of those concerned. Community and stakeholder participation in determining those needs is therefore at the heart of the IDP process. The Constitution and the Systems Act clearly stipulate that a municipality must mobilise the involvement and commitment of its stakeholders by establishing an effective participatory process. The municipality should especially ensure participation by previously disadvantaged groups. Stakeholder groups that are not organised, i.e. Non-Governmental Organisations (NGO s), play a critical role to voice the interests of those groups. Thus it is the nature of the IDP process to allow all stakeholders who reside or conduct business within a municipal area to contribute to the preparation and implementation of the IDP. By abstaining from participating in the IDP process, stakeholders empower others to make decisions on their behalf, which decisions might not be in their best interest. >? ".. The IDP should guide how the provincial and national sector departments allocate resources at local government level. Simultaneously, municipalities should consider the sector departments policies and programmes when developing own policies and strategies. It is in the interest of the sector departments to participate in the IDP process to ensure that its programmes and those of municipalities are aligned. *' " It is the responsibility of municipalities to prepare and adopt IDP s. However, the IDP is an integrated inter governmental system of planning which requires the involvement of all three spheres of government. Some contributions have to be made by provincial and national government to assist municipal planning.

10 7 The IDP roles and responsibilities of the three spheres of government GOVERNMENT SPHERE ROLES AND RESPONSIBILITIES LOCAL Local municipality Prepare and adopt an IDP District municipality Provide support to poorly capacitated local municipalities Facilitate the compilation of a district framework which will ensure co-ordination and alignment between local municipalities and the district municipality Prepare and adopt an IDP Metropolitan municipality Prepare and adopt an IDP PROVINCIAL Department of Local Government Co-ordinate training Provide financial support Provide general IDP guidance Monitor the process in the Province Facilitate co-ordination and alignment between district municipalities Facilitate resolution of disputes between municipalities Facilitate alignment of IDP s with Provincial sector department policies and programmes Assess IDP s Sector Departments Provide relevant information on sector department s policies, programmes and budgets Contribute sector expertise and technical knowledge to the formulation of Municipal policies and strategies Be guided by Municipal IDP s in the allocation of resources at the local Level NATIONAL Department of Provincial and Local Government Issue legislation and policies in support of IDP s Issue Integrated Development Planning Guidelines Provide financial assistance Provide a National Training Framework Establish a Planning and Implementation Management Support System Sector Departments Provide relevant information on sector department s policies, programmes and budgets Contribute sector expertise and technical knowledge to the formulation of Municipal policies and strategies Be guided by Municipal IDP s in the allocation of resources at the local Level *'/ # #.. >? >? <. = The preparation of IDP s is a new requirement for local government in South Africa. The majority of municipalities do not have sufficient capacity to prepare IDP s on their own. To support municipalities, DPLG initiated the PIMSS. PIMSS is a national IDP support system which has been established to provide support to municipalities in the preparation and implementation of IDP s. The core element of the PIMSS is the Planning and Implementation Management Support Centres (PIMS-Centres). The PIMS-Centres are established at district council level and their mandate is to assist local municipalities, which have limited capacity, with the IDP process.

11 8 The PIMS-Centres are staffed by experienced professionals with applicable qualifications and experience in local government, development planning and facilitation as well as other relevant skills required for the IDP process. >0? < 0+ + = The establishment of PIMSS is geared towards assisting local councils. Stakeholders and community groups can however access the PIMSS if they require any form of assistance, e.g. how to organise themselves in order to participate effectively in the IDP process. The PIMS-Centre staff would provide the assistance directly or refer a roleplayer to relevant service providers who have the necessary expertise.

12 - 9 $% % -'& %. " # Integrated development planning mobilises a municipality to focus itself, develop a futuredirected vision and proactively position itself in a changing environment. Furthermore, it enables a municipality to gain a better understanding of the changes it encounters and to identify effective methods to deal with such changes. By analysing the future, a municipality, its leaders, other stakeholders and civil society can anticipate future opportunities and threats. They can develop the ability to optimise opportunities, while controlling and minimising the threats. By identifying problems before they occur, a municipality can avoid being trapped in a cycle of crises management, which consumes valuable financial and human resources resources which could have been used to take advantage of opportunities. -'*... One of the key components of the IDP process is an internal organisational audit or analysis. Such an analysis allows the municipality to know and understand its own internal operations. On the basis of this understanding, the municipality is in a better position to manage the changes which will be required in order to bring about the desired future. The aim of the analysis is to identify the municipality s strengths and weaknesses, including its structures, staff composition and deployment, financial situation and culture. The purpose is not to defend outdated and impractical structures, procedures and practices, but rather to establish an open-minded view of the organisation, to recognise problems, shortcomings, limitations and imbalances and to identify ways to overcome it. The institutional audit also focuses on exposing the vulnerability of the municipality in terms of identified threats. It highlights the capacity of the municipality to optimise opportunities, and be proactive and future-directed. -'- #... Integrated development planning provides an opportunity to establish and prioritise the needs to be addressed by a municipality. It grants a municipality the opportunity to inform the community and all stakeholders about available resources, and to involve them in prioritising services and service levels. It enables the municipality to allocate resources human and financial in order of priority. It also allows for the design of alternative service delivery mechanisms, such as public/private partnerships. -', 6 # The IDP may be defined as a holistic plan the final product of the IDP process. It contains a range of projects, all designed to achieve specific development objectives. The IDP sets measurable development objectives and targets. For each of these objectives and targets a municipality assigns tasks with set target dates to specific persons or task teams. The municipality is then able to monitor the course of each action and make adjustments where necessary to ensure that the intended objective is achieved.

13 10 -'7 + # The IDP sets clear development objectives and targets, and provides direction to improve performance. It sets key performance indicators (KPI s) and the criteria for measuring performance both for the overall IDP, and for specific projects. As such it enables management to align actions with set objectives. Customer satisfaction also serves as a performance measure. External stakeholders (the customers of municipal services) are involved in identifying and prioritising needs, they are able to judge whether the objectives and targets have been successfully achieved as planned. They are therefore an integral part of the monitoring process. -'4. # The community may set an idealistic vision for the future. However, by involving all stakeholders in the planning process and empowering them with knowledge about the municipality s weaknesses and strengths, and its resources and responsibilities, the municipality is able to develop a realistic, achievable plan for future development. Stakeholders are also more likely to prioritise their needs and expectations realistically when they are involved in the planning process. -' $# Integrated development planning provides an opportunity for stakeholders with different needs, priorities and agendas to learn from each other, and to negotiate and compromise around their established view points. The process is not without disagreement and conflict but, if well managed, it can promote consensus and allow compromises and agreements on common development objectives to be reached. Through the process, councillors and officials also gain a better understanding of the municipality and the respective roles they must fulfil. This can enhance team work and promote commitment towards achieving the development and operational objectives contained in the IDP. -'5 1 +!. Integrated development planning can also be termed participative planning, because it involves the participation of all stakeholders. In terms of the Constitution, all spheres of government national, provincial and local are required to promote co-operative governance that is, government which actively seeks to involve all those who have an interest in or a contribution to make. This is the corner stone of our new democracy and for municipalities, this means that the client base the citizens and all affected stakeholders and groups has to be involved in all decision-making which affects them. However, meaningful participation entails that the community and stakeholders have to be empowered with the necessary information and knowledge about all the issues that have to be addressed. This will ensure constructive, practical and achievable objectives. The IDP process is the medium through which such knowledge is channelled to stakeholders, and through which they are empowered to participate in planning for the future. Informed participation enables the community to take shared responsibility for the destiny of the municipality and provides the benefit of greater commitment by stakeholders towards the IDP.

14 11 -'/ %. $## The IDP process facilitates budgeting in accordance with planning it enables the budget to be linked to the IDP as required by the Systems Act. In particular, it provides for strategic management based on a budget, driven by the key development priorities. Stringent financial control and sound financial management are not possible unless there is a focused budget, based on specific objectives with no fat reserves (unallocated resources). Integrated development planning, if correctly carried out, ensures that realism dictates the budget. -'&8 # # Planning for future development also means planning for change. The IDP provides a tool for managing the change which automatically comes with development. Through the IDP process the mindsets of people are changed to address the realities of the present and to embrace the opportunities the future holds. The process requires a new approach to management and planning, and determines the rules with which a municipality s structure and people must comply to develop a culture of change management.

15 , 12 $,'& One of the objects of local government in terms of the The Constitution Section 152(1)(e) and Constitution is to encourage the involvement of The Municipal Systems Act, 2000, Chapter 4. communities and community organisations, in local government. The Systems Act, deals with community participation. The following is a summary of Chapter 4 of the Systems Act. A municipality must develop a culture of municipal governance that complements formal representative government with a system of participatory governance. The Systems Act emphasises three elements: The municipality must foster participation in The IDP process; The evaluation of its performance through performance management; The budget process; and strategic decisions regarding service delivery. The municipality must enable participation through capacity building in the community and among staff and councillors. Funds must be allocated and utilised for the above purposes.,'* <. >?. The Constitution establishes representative democracy and participatory democracy as two objects of local government. The Constitution Section 152. Through regular elections, councillors are elected both in wards and on party lists to represent the residents of the municipality. Participatory The Constitution Section 160(4). democracy is enshrined in the Constitution and section 160(4) contemplates that no by-law may be passed unless it has been published for public comment. >0? %1! A national statutory framework is established that broadly outlines a system of participatory democracy in both the Local Government: Municipal Structures Act, 1998 (Structures Act) and the Systems Act. The Structures Act provides the skeleton of a ward committee system while the Systems Act devotes chapter 4 to community participation.

16 13 >? $:1. The national statutory framework allows municipalities to develop, in terms of the Systems Act, a culture of municipal governance that complements formal representative government with a system of participatory Municipal Systems Act, 2000, Section 16(1). government. The framework for a system of ward committees is best captured in a by-law. >?. + The Systems Act sets out two important principles for community participation: Municipal Systems Act, 2000, Section 16. Participatory governance should not permit interference with a municipal council s right to govern and exercise the executive and legislative authority of the municipality. The municipal council, which is the product of representative democracy, not only has the sole legal mandate to govern, but also, and more importantly, the political legitimacy to do so. Given the pre-eminence of the formal representative structures, participatory democracy is there to complement the politically legitimate and legally responsible structures. This means that any community participatory structure may merely add to the formal structures of government, and not replace or substitute it. While every council must comply with the broad principles of participatory democracy, councils have the discretion to decide whether or not it wishes to establish ward committees. Where ward committees are established, the principles of participatory democracy also apply to this system. >? %. + <. When devising a ward committee system it is important to proceed from the principle that structure must follow function. After a clear function is identified and clarified, a structure that may best fulfil that function can be established. Proceeding the other way around, could defeat the true functions of the system. What then are the functions of a ward committee? >? The primary function of a ward committee is to serve as a formal communication channel between the community and the council. In terms of the Municipal Structures Act, 1998, Section 74(4). Structures Act a ward committee may make recommendations on any matter affecting the ward to the ward councillor or through that councillor to the council. Furthermore, a ward committee is the proper channel through which communities can lodge their complaints. It would also be a forum for communication between the ward councillor and the community about municipal issues and development, as well as service options within the ward.

17 14 >? + < A ward committee should, in a broad sense, be a communication channel for the entire ward community. The ward committee cannot merely reflect and replicate the existing configuration of the elected council. That would result to double representation. Nor should it function as a communication channel for the winning party only. The councillor and his or her supporting political structure already perform this function. A ward committee should also not provide a forum for the losing candidates to fight the municipal election de novo. Minority parties have their own structures within the system of proportional representation (PR) to make recommendations to the council. With regard to the composition of ward committees, the Structures Act merely states that the procedure for electing members must take into account the need for women to be equitably represented on a ward Municipal Structures Act, 1998, Section 73(3). committee and for a diversity of interests in the ward to be represented. The philosophy behind this provision is that the interests that have not been accommodated through the formal political processes should be included in municipal governance. The reference to a diversity of interests stresses this point; it should be an inclusive process. >? %. The Structures Act provides that a council may also delegate specific municipal duties and powers to a ward committee. It is difficult Municipal Structures Act, to conceive what executive functions a ward 1998, Section 74(b). committee should be entrusted with. Once a ward committee is given delegated powers, the issue of election procedures will become contested. Any election procedure, unless it is simply a replication of the councillor election process, will be inherently problematic and provide an insecure base from which to launch executive decisions. It is therefore suggested that no executive functions be delegated to ward committees. Apart from its primary communication function, a ward committee could also be an important mobilising agent for community action. The Masakhane Campaign could, for example, be bolstered by the participation of such committees. They can also play an important role in mobilising partnerships for the development of local projects. The ward committee cannot prescribe to the ward councillor how to vote in council meetings. However, it may well call on the ward councillor to resign and pass motions of no confidence in him or her, but it may not impede any of the activities of the councillor in the ward. >+? Interest groups that should be accommodated are those that are directly relevant to the core business of the municipality. In other words, they must relate to the municipality s key performance areas (KPA s) in that ward.

18 15 >? + + ; ". + < Because of the wide range of municipal functions and powers, many societal groups could claim an interest in municipal matters. Due to the fact that ward committee membership is restricted to ten (10) representatives, only members from organisational groups with a direct interest in the key development priorities of a specific ward should be considered for such membership. Key development priorities in a ward are those identified through the IDP process. >? $. ". In most wards, key development priorities are related to the major services that must be delivered such as water, electricity, sanitation, roads and storm-water. Other social services that are important may include health, sport and safety and security. There is no closed list of key development priorities. Additional areas can be identified through the IDP process. >? < :. + ; ". Some key development priorities could be linked to a particular ward. For example, where a large truck stop along a national road is situated in a particular ward, leading to a high prevalence of HIV/Aids in that ward, the prevention and combating of HIV/Aids would be a key development priority for that ward. The same applies to economic development in wards where central business districts are located. The identified key development priorities of a particular ward should thus be used to identify interest groups. >"?.. The interest groups and formations in civil society are varied and can be categorised as follows: " :. Some civil society organisations are formed with the specific goal of ensuring performance by a municipality in respect of key development priorities. Such organisations include community based organisations (CBOs) and ratepayers associations. These structures would obviously be candidates for inclusion. However, where such structures have been political actors in the election campaign, they would already have representation in the council, and should not be included... The second set of interest groups comprise of organisations that focus on a particular issue, which may or may not intersect with municipal activities. A council should thus identify those groups whose specific areas of interest relate directly to the ward s key development priorities. For example, where safety and security is a key development priority, community safety forums may be appropriate interest groups. Other interest groups may include business chambers, informal trade associations, environmental groups, etc.

19 16... Groups that belong to this category are those whose interests only occasionally intersect with municipal business. Due to their peripheral and occasional engagement with municipal affairs, they should be excluded. Religious groups may fall into this category. <A.. The Structures Act requires that women should be equitably represented on ward committees. Does that mean that they must be equitably represented in the various interest groups, or should women be regarded as an interest group in their own right? The Structures Act does not refer to equitable representation of women under the heading of interest groups. This may suggest that a procedure prescribed in the Structures Act for political parties (that parties must ensure that at least 50% of the candidates on the list are female) should be followed. With usually only one member of each interest group represented on a ward committee, it might be difficult to achieve an equitable result. The alternative approach is to regard women as an interest group. The most equitable solution would be both to emphasise the need that interest groups representation equitably represents women and to accept that women form a relevant interest group in their own right.. The model presented here is based on the assumption that there are welldeveloped, functioning civil society structures formed around specific interests. In some rural areas this may not be the case; interest groups might not be experienced enough to represent a ward s community. In such a case, geographical spread of representation would be the preferred option.. The possible role of traditional leaders, as a particular interest group in a ward committee, will depend upon the outcome of the deliberations between government and the coalition of traditional leaders. It is suggested that traditional leaders should be considered as an interest group within a ward. >"?. + <. To a large extend, the ward committee can determine its own internal procedures. The council must however make rules regulating the frequency of the meetings. The ward councillor is Municipal Structures Act, 1998, Sections 73(2)(a) and 73(3)(c). the chairperson of the committee. He/she calls the meetings and presides over them. The municipal council must determine rules for the manner in which a committee may make recommendations or decisions. Similarly, the council must determine the procedure that the chairperson would follow in submitting a recommendation or decision from the committee to the council.

20 17 >"? +. A PR councillor has no formal standing in the ward committee and, in terms of the Structures Act, may not be a member of such a committee. The ward councillor as the chairperson of the committee is in charge of the committee. A council may develop a policy setting out how PR councillors may participate (as non-members) in ward committees. For example, should a council decide to allocate PR councillors to wards, it may determine that such councillors participate ex officio in the proceedings of the relevant ward committees. Such participation may not, however, disrupt the operation of the ward committee. >"?.. + < The Structures Act leaves it up to the discretion of the council to make administrative arrangements to enable ward committees to function effectively. Municipal Structures Act, 1998, Sections 73(4) and 77. While no remuneration is to be paid to ward committee members, this does not prevent the council from reimbursing committee members for travel costs and other out-of-pocket expenses. The council should also provide assistance such as secretarial assistance, venues for meetings, etc. The Systems Act provides specifically that councils must allocate funds annually in their budgets for the implementation of community participation. This should include funds for ward committees.,'-. + Participation must take place through the established structures (ward committees). It must also take place through mechanisms, processes and procedures that exist in terms of the Systems Act itself or that have been established by the council. The Systems Municipal Systems Act, 2000, Section 16(1)(c). Municipal Systems Act, 2000, Section 17(4). Act mentions the ward committee as a vehicle for participation. In addition to ward committees, the council may, for instance, establish advisory committees consisting of persons who are not councillors. The mechanisms, processes and procedures mentioned in the Systems Act must include: Procedures to receive and deal with petitions and complaints of the public; Procedures to notify the community about important decisions (such as by-laws, IDP service delivery choices, etc.) and allowing public comment when it is appropriate; Public hearings; Consultative meetings with recognised community organisations and, when appropriate, traditional authorities; and report back to the community. These systems must, as a minimum measure, be established in every municipality. The special needs of women, illiterate people, disabled people and other disadvantaged groups must be taken into account. Include at least: Ward Committees Business Civil Society Women Disabled People

21 For example, when planning a public meeting, the council must endeavour to accommodate all these groups and consider issues such as: Venue: Can the venue accommodate people with disabilities, e.g. does it have wheelchair access? Time: Does the time of the meeting make it difficult for women to attend due to family responsibilities? Publicising the event: Should the announcement appear only in newspapers? The council must make the public aware of the established Municipal Systems Act, 2000, mechanisms for participation. It must also inform the public of the Section 18(1). issues in which it wants participation. The residents must be informed regarding municipal governance, management and development.,', #. The municipal manager must notify the public of the time, date Municipal Systems Act, 2000, and venue of every meeting of the council. The council Section 19. determines how notice should be given (e.g. via the local newspaper). This also applies to urgent meetings, except when time constraints prohibit prior notification. The council must determine in a by-law or a resolution the circumstances under which council or committee meetings are closed to the public. The public and the media can attend council and committee meetings, except when it is reasonable to exclude them because of the nature of the items on the agenda. An executive committee or a mayoral committee can also close its meetings if it is reasonable to do so because of the Municipal Systems Act, 2000, Section 20(1). nature of the items on the agenda. The meetings must always be open to the public if one of the following matters is discussed or voted on: A by-law; The budget; The IDP (or an amendment to it); The performance management system; or a service delivery agreement. 18 The council must, as far as its financial and administrative capacity allows, provide space for the public in its meeting venues. It can make rules to regulate access to and public conduct at council and committee meetings. Municipal Systems Act, 2000, Section 20(4).,'7 The council must determine what its official languages are, taking into account the language preferences and usage within the municipal area. Whenever the council notifies the community through the media in terms of any legal provision, these languages must be used. One or more of the following means of notification must be considered: Local newspaper; Other newspaper that has been designated as a newspaper of record; or radio broadcasts.

22 Any such notice, as well as those that must be published in the Provincial Gazette, must also be displayed at the municipal offices. When the municipality invites comments from the public, it must ensure that an official is available at the municipal offices during office hours to assist residents who cannot write (due to illiteracy or disability) to put their comments in writing. This option must be communicated to the public in the invitation for comments. Similarly, when the council requires a form to be completed, officials must assist residents in understanding and completing the form. When the form deals with payment of money Municipal Systems Act, 2000, Section 21(4). to the municipality or the provision of services, the assisting official must explain the terms and conditions of such payment or services to be rendered.,'4 #. 19 The minister for provincial and local government may issue further regulations on participation and may set minimum standards, including standards on funding for participation. In doing so, the minister must take into consideration the capacity of municipalities to comply with the regulations. Municipal Systems Act, 2000, Section 21(4).

23 ( 20 ( &) &) $!# *) + -) $+.,) 0 ( *) &).. *). %1! ( -) % 3 &) *).. :. & -) #. :. *,) 6. :. - 7) # :., 4) " :. 7 (,) &) $.... *) $#. -) #9 " "1#,) #

24 21 *) Drafting an IDP requires a comprehensive planning process and the involvement of a wide range of internal and external role players. Such a process has to be properly organised and prepared. This preparation is the duty of the municipal manager and senior management. The preparation process will be referred to as the Process Plan and should contribute to the institutional preparedness of the municipality for the IDP process. (For more details refer to the IDP guide pack guide 2). & In order to ensure that the IDP process complies with certain minimum quality standards and that proper coordination between and within the spheres of government is established, the preparation of the process plan is regulated by the Systems Act. It requires the adoption of a process set out in writing by each municipality (including local and district), which is supposed to guide the planning, drafting, adoption and review of the IDP. This written document is referred to as the process plan and has to include the following: A programme specifying time frames for the different planning phases; Appropriate mechanisms, processes and procedures for consultation with and participation of local communities, organs of state, traditional authorities, and other stakeholders in the IDP process; and the identification of all plans and planning requirements binding on the municipality in terms of provincial and national legislation. Municipal Systems Act, 2000 Sections 28 and (1) Each municipal council, within a prescribed period after the start of its elected term, must adopt a process set out in writing to guide the planning, drafting, adoption and review of its integrated development plan. (2) The municipality must through appropriate mechanisms, processes and procedures established in terms of Chapter 4, consult the local community before adopting the process. (3) A municipality must give notice to the local community of particulars of the process it intends to follow. 29.(1) The process followed by a municipality to draft its integrated development plan, including its consideration and adoption of the draft plan, must (a) (b) (c) (d) be in accordance with a predetermined programme specifying time frames for the different steps; through appropriate mechanisms, processes and procedures established in terms of Chapter 4, allow for (i) the local community to be consulted on its development needs and priorities; (ii) the local community to participate in the drafting of the integrated development plan; and (iii) organs of state, including traditional authorities, and other role players to be identified and consulted on the drafting of the integrated development plan; provide for the identification of all plans and planning requirements binding on the municipality in terms of national and provincial legislation; and be consistent with any other matters that may be prescribed by regulation. The municipality must notify the local community of the particulars of the process it intends to follow. The Local Government, Municipal Systems process plan has to be submitted and adopted by the Regulations, 2001, Government Notice 459 (25 relevant municipality on or before 16 July May) Gazette no The process plan should fulfil the function of a business plan and should stipulate in simple terms what has to happen, when, by whom, with whom, and where.

25 22.. The following is the proposed table of contents, with due consideration to the prescriptions contained in legislation: Introduction; Institutional arrangements; Establishment process; Roles and responsibilities; Public participation; Process programme; Process time frame; IDP table of contents; Binding national and provincial plans, planning requirements and legislation; and Activity and resource plan. >? The introduction will provide a brief background and other relevant details of the municipality (1-2 pages). >0?. #. The elected council is the ultimate decision-making forum on IDP s. The role of participatory democracy is to inform, negotiate and comment on those decisions, in the course of the planning process. The following positions and structures are recommended and will serve as a guide: IDP representative forum Municipal manager or IDP manager IDP steering committee Project, programme and sectoral task teams The IDP manager, IDP steering committee and IDP representative forum are structures required throughout the IDP process. The project, programme and sectoral task teams will be small operational teams composed of a number of relevant municipal sector departments and technical officials involved in the management of the implementation and, where appropriate, community stakeholders directly affected by the project and programme.

26 23 Proposed IDP Structure MUNICIPAL COUNCIL Executive Committee or Executive Mayor or Committee of appointed Councillors Municipal Manager (IDP Manager) IDP Steering Committee Stakeholder and Community Participation IDP Representative Forum Metropolitan/ District and Local Level Subcommittees Project, Programme and Sectoral Task Teams Stakeholder Structures Ward Committees Ward Level >?.0... (See Page 43) >? B " 9 B " #) Define terms of reference for the IDP manager and steering committee; Identify an appropriate IDP manager, taking into consideration the importance of the IDP; Assign responsibilities to the municipal manager regarding the drafting of the IDP; Identify and nominate suitable candidates for the IDP steering committee ensuring that all relevant issues (e.g. LED, spatial, housing, finance, etc.) have at least one responsible senior official; and include portfolio councillors where applicable. >? 1.0. # " % 0) Defining terms of reference and criteria for members of the IDP representative forum; and informing the public about the establishment of the IDP representative forum and request submission of applications from stakeholders/community groups indicating goals, objectives, activities, number of members, and constitution.

27 24 >? + #. # #. ) Powers and functions to be delegated; Responsibility remaining with municipal manager/ accountability; and reporting mechanisms. >"? # ) Establish subcommittees (if necessary) and decide on relationship/reporting mechanisms; and appoint the secretariat. The outputs of each phase will be submitted to the IDP Representative Forum, to signal that the process can continue and once approved it will be tabled and discussed by the municipal Council. It is very important that while the Municipal Council considers specific outputs of the IDP process, the process continues and is not put on hold, even if the outputs are not satisfactory. The comments from the Municipal Council will be incorporated subsequently to being noted. >?...0. >? B " CB " C +.) The executive committee or executive mayor of a municipality or, if the municipality does not have an executive committee or executive mayor, a committee of appointed councillors, must: Municipal Systems Act, 2000, Section 30. Manage the drafting of the IDP; Assign responsibilities in this regard to the municipal manager; and submit the draft plan to the municipal council for adoption. These are structures already established and required by the Structures Act. The committee of councillors appointed by the municipal council (the plenary type) in terms of Section 30 of the Systems Act, is a specific structure established for purposes of the IDP. It is recommended that the responsibility for managing the drafting of the IDP be assigned to the municipal manager or IDP manager on his behalf. >? ) Prepare, decide on and adopt a process plan. Undertake the overall management and co-ordination of the planning process, which includes ensuring that: All relevant stakeholders are appropriately involved; Appropriate mechanisms and procedures for public consultation and participation are applied; The planning events are undertaken in accordance with the set time frame; The planning process is related to the key development priorities in the municipality; and National and provincial sector planning requirements are satisfied. Adopt and approve the IDP.

28 Amend the IDP in accordance with the requirements of the MEC for local government. Ensure that the annual operational business plans and budget are linked to and based on the IDP. >? # The municipal manager or IDP manager on his behalf, is the responsible person for championing the IDP process. The selection of the appropriate person is crucial for the success of integrated development planning and has to be done as the first step towards preparing the process plan, since the IDP manager is also the responsible person for designing the process plan. The IDP manager should be a dedicated person that has the required experience and authority to involve all relevant role players, and will have the following responsibilities: The preparation of the process plan. The day to day management of the planning process in terms of time, resources and people, and ensuring: The involvement of all relevant role players, especially officials; That the time frames are being adhered to; That the planning process is horizontally and vertically aligned and complies with national and provincial requirements; That conditions for participation are provided; and that outcomes are being documented. Chairing the steering committee. Management of consultants. >"? # The steering committee should be a technical working team of dedicated heads of departments and senior officials who support the IDP manager to ensure a smooth planning process. The IDP manager is responsible for the process, but will often delegate functions to members of the steering committee. In municipalities where relevant portfolio councillors wish to be part of the IDP steering committee, they should be included. >&?. + # ) Chairperson Municipal manager (or IDP manager) Secretariat Official of municipality Members Heads of departments/sectors; and/or senior officials of municipality and/or provincial departments. 25 Must also include: Financial Manager Human Resource Manager Corporate and Legal Manager Marketing and Communications

29 26 >*? # #) Provide terms of reference for subcommittees and the various planning activities. Commission research studies. Consider and comment on: Inputs from subcommittee(s), study teams and consultants; and inputs from provincial sector departments and support providers (PIMS-Centres, etc.). Process, summarise and draft outputs. Make recommendations. Prepare, facilitate and minute meetings. Prepare and submit reports to the IDP representative forum. The IDP Steering Committee may establish subcommittees for specific activities and outputs which may include additional persons outside the Steering Committee. An official of the municipality should be appointed to prepare, facilitate and document meetings. The function should be the responsibility of the Municipal Planner or similar official. For the logistics of workshops, dissemination of information and invitations, the responsible Official should be supported by an administrator. >"?." % The IDP representative forum is the structure which institutionalises and guarantees representative participation in the IDP process. The selection of members to the IDP representative forum has to be based on criteria which ensure geographical and social representation. >&?. +." %) Chairperson chairperson of the executive committee or the executive mayor or a member of the committee of appointed councillors Secretariat IDP steering committee The preparation, facilitation and documentation of meetings and workshops of the IDP Representative Forum may need to be supported by professional planners, e.g. PIMS-Centres. Members: Members of the executive committee/mayoral committee/ committee of appointed councillors; Councillors (including councillors who are members of the district council and relevant portfolio councillors); Traditional leaders; Ward committee chairpersons; Similar structures will be required at district-level for the district IDP; The composition of the district IDP Representative Forum should include local municipality representation IDP Representative Forum Chairpersons IDP Managers

30 27 Heads of departments/ senior officials; Stakeholder representatives of organised groups; Stakeholder representatives of unorganised groups; Resource persons; and community representatives (e.g. RDP Forum). >*? % ) Represent the interests of their constituents in the IDP process; Provide an organisational mechanism for discussion, negotiation and decision-making between the stakeholders and the municipality; Ensure communication between all the stakeholder representatives; and monitor the performance of the planning and implementation process. >-?." % + The code of conduct will at least include the following: Meeting schedule (frequency and attendance); Agenda, facilitation and documentation of meetings; Purpose of the forum; Regular feedback to constituents; Required majority for approval; Quorum requirements; and resolution of disputes (including provincial assistance). Proposed Co-ordination Process MUNICIPAL COUNCIL IDP STEERING COMMITTEE MAYORAL COMMITTEE OR EXECUTIVE COMMITTEE OR COMMITTEE OF APPOINTED COUNCILLORS Co-ordinate total process Draft: - Process Plan - District Framework (if applicable) - Planning Phases Final IDP - All Reports and Recommendations Facilitate, prepare and minute meetings and workshops, including the IDP Representative Forum Prepare Reports and submit to Council: - Process Plan - IDP per Phase - Final IDP IDP REPRESENTATIVE FORUM

31 28 >"?!.". Stakeholder and community representatives have the following roles and responsibilities to fulfil: Participating in the IDP representative forum to: Inform interest groups, communities and organisations about relevant planning activities and their outcomes; Analyse issues, determine priorities, negotiate and reach consensus; Participate in the designing of project proposals and/or the evaluation thereof; Discuss and comment on the draft IDP; Ensure that annual operational business plans and budgets are based on and linked to the IDP; and The specific role of traditional leaders still requires further clarification. The roles of the civil society are to be seen as an opportunity rather than a responsibility or duty. monitor the implementation performance of the IDP. Conducting meetings or workshops with groups, communities or organisations to prepare and follow-up on relevant planning activities. >"? " " The provincial local government department and sector departments have the following roles and responsibilities: Ensuring horizontal alignment of the metropolitan and district municipalities within the province; Ensuring vertical/sector alignment between provincial sector departments/ provincial strategic plans and the IDP process at metropolitan/district/local level; Efficient financial management of provincial IDP grants; Monitoring the progress of the IDP processes; Facilitation of disputes related to the IDP; Assist municipalities in the IDP drafting process when required; Facilitation of IDP related training where required; Co-ordinate and manage the MEC s assessment of IDP s; Provide relevant information on the provincial sector departments plans, programmes, budgets, objectives, strategies and projects in a concise and accessible manner; Provide sector expertise and technical knowledge to the formulation of municipal strategies and projects; and engage in a process of alignment with metropolitan and district municipalities.

32 29 >"? ". # +... Support providers and professionals such as consultants, NGO s, PIMS-Centres and municipal planning officials have the following roles and responsibilities: Providing methodological/technical guidance in terms of the IDP process; Facilitation of planning workshops; Documentation of planning activity outcomes; Special studies or other product related contributions; Support to organised and unorganised groups and communities to more effectively engage in and contribute to the planning process; and ensuring that the IDP is aligned with the budget and planning requirements of provincial and national departments. >B?. The district municipality has the same roles and responsibilities as municipalities related to the preparation of a district IDP. Co-ordinating roles regarding local municipalities include the following: Ensuring horizontal alignment of the IDP s of the local municipalities in the district council area; Ensuring vertical alignment between district and local planning; Facilitation of vertical alignment of IDP s with other spheres of government; and preparation of joint strategy workshops with local municipalities, provincial and national role players. >? 0 The structures, composition and positions may vary between different categories and types of municipalities to suit the available human and institutional resources, but the proposed generic arrangements are recommended as a minimum requirement, and are based on the following principles: Public participation has to be institutionalised to ensure that all residents have an equal right to participate; and structured participation must specify who is to participate, on behalf of whom, on which issues, through which organisational mechanisms and to what effect. Public participation is not equally relevant and appropriate in each stage of planning, and not all participation procedures are equally suitable for each planning step. To limit participation costs, to avoid participation fatigue, and to optimise the impact of participation, the mechanisms of participation will have to differ from stage to stage.

33 30 $ % 3 ( &) 3 Community and Ward Committee meetings organised by councillors Stakeholder meetings Sample surveys (if necessary) Opinion polls (on certain issues if necessary) IDP Representative Forum ( *) Strategic workshops, with IDP Representative Forums of all municipalities, sector provincial and national departments and selected representatives of stakeholder organisations and resource people Stimulation through public events such as public meetings, press conferences, etc. ( -) D Municipality-wide Projects/Programmes Technical subcommittees with few selected representatives from stakeholder organisations/civil society IDP Representative Forum Localised Community Level Projects/Programmes Intensive dialogue between technical subcommittees and affected communities/stakeholders IDP Representative Forum (,) IDP Representative Forum ( 7) Broad public discussion/consultation process within community/stakeholder organisations Opportunity for comments from community and stakeholder organisations IDP Representative Forum Operational Business Plans Municipal Budget Monitoring, Evaluation and Reviewing Reporting IDP Representative Forum

34 31 >+?.. # The following is a proposed IDP process that a municipality can follow: (See Page 45) 1. FIVE YEAR IDP PLANNING PROCESS 1.1 Phase 1: Analysis (a) Legal Framework Analysis (b) Leadership Guidelines (c) Municipality Technical Development Analysis (d) Community and Stakeholder Development Analysis (e) Institutional Analysis (f) Economic Analysis (g) Socio-Economic Analysis (h) Spatial Analysis (i) Environmental Analysis (j) In-depth Analysis and identification of Key Development Priorities 1.2 Phase 2: Strategies (a) Identifying a Vision, Mission and Value System (b) Perform a Gap Analysis (c) Identify Key Performance Areas (KPA s) (d) Determine Strategies and Development Objectives (e) Link KPA s and Objectives to Sectoral Functions 1.3 Phase 3: Projects (a) Performance Management System (b) Identify Capital Projects (c) Identify Specific Programmes (d) Compile Five Year Operational Business Plans 1.4 Phase 4: Integration (a) Integration of Processes (b) Institutional Restructuring and Alignment (c) Compile an Integrated Communication Plan 1.5 Phase 5: Approval (a) District Alignment (b) Public Comments (c) Provincial/National Alignment (d) Final Approval by the Municipal Council 2. ANNUAL IMPLEMENTATION 2.1 Compiling Operational Business Plans 2.2 Compiling Municipal Budget 2.3 Monitor, Evaluate and Review 2.4 Reporting

35 Time Frame: Integrated Development Planning Process Serial No Planning Activity 1. PREPARATION 1.1 Process Plan Drafting and Approval 1.2 District Framework Drafting and Approval 2. FIVE YEAR IDP PLANNING PROCESS 2.1 PHASE 1: ANALYSIS (a) Community and Stakeholder Development Analysis (b) Municipal Technical Development Analysis (c) Institutional Analysis (d) Economic Analysis (e) Socio-Economic Analysis (f) Spatial Analysis (g) Environmental Analysis (h) Legal Framework Analysis (i) Leadership Guidelines (j) In-depth Analysis 2.2 PHASE 2: STRATEGIES (a) Vision, Mission and Values (b) Gap Analysis and Strategies (c) Link KPA s and Objectives to Sectoral Functions 2.3 PHASE 3: PROJECTS (a) Performance Management (b) Identify Capital Projects (c) Identify Specific Plans/Programmes (d) Sectoral Operational Business Plans 2.4 PHASE 4: INTEGRATION (a) Integration of Processes (b) Institutional Restructuring (c) Integrated Communication Plan 2.5 PHASE 5: APPROVAL (a) District Alignment (b) Public Comments (c) Provincial and National Alignment (d) Final Approval 3 ANNUAL IMPLEMENTATION (a) Operational Business Plans (b) Municipal Budget (2001/2002) (c) Monitor, Evaluate and Review (d) Reporting Week >#?.. % 32

36 33 >? 0 +. The form and content of a five (5) year IDP are largely subject to the discretion of a municipality. The following is an example and should not inhibit any other creative ideas. $ % 1. Introduction 2. Preparation Process 2.1 Process Plan 2.2 District Framework (Not applicable to Metros) 3. Vision, Mission and Values 4. Existing Development Analysis 4.1 Legal Framework Analysis 4.2 Leadership Guidelines 4.3 Technical Analysis (Basic Facts, Figures and Key Development Priorities) 4.4 Summary of Community and Stakeholder Analysis (Key Development Priorities) 4.5 Institutional Analysis (Strengths and Weaknesses) 4.6 Economic Analysis (Patterns, Trends, Opportunities and Threats) 4.7 Socio-Economic Analysis (Poverty Situations, Gender Issues, Opportunities and Threats) 4.8 Spatial Analysis (Patterns, Trends, Opportunities and Threats) 4.9 Environmental Analysis (Trends, Potential Disasters, Opportunities and Threats) 4.10 In-depth Analysis and Identify Key Development Priorities 5. Development Strategies 5.1 Key Performance Areas 5.2 Development Objectives 5.3 Summarised List of Specific Identified Development Projects 6. Capital Projects Project Proposals (one page each) linked to Performance Management Details. 7. Institutional Organogram 7.1 Committee System, Community Participation, Decision-making Process (All on Diagram) 7.2 List of By-laws 8. Performance Management System including a list of Performance Based Contracts. 9. Sectoral (departments) Five Year Operational Business Plans 10. Specific Programmes: 10.1 Communication Plan 10.2 Financial Plan (Including Capital) 10.3 Spatial Development Framework 10.4 Disaster Management Plan 10.5 Maintenance Plan 11. Annual Implementation Plan 11.1 Monitoring and Evaluation 11.2 Reporting 12. Annexures 12.1 Maps 12.2 Statistics 12.3 Other relevant documents Municipal Systems Act, 2000, Section An integrated development plan must reflect (k) the municipal council s vision for the long term development of the municipality with special emphasis on the municipality s most critical development and internal transformation needs; (l) an assessment of the existing level of development in the municipality, which must include an identification of communities which do not have access to basic municipal services; (m) the council s development priorities and objectives for its elected term, including its local economic development aims and its internal transformation needs; (n) the council s development strategies which must be aligned with any national or provincial sectoral plans and planning requirements binding on the municipality in terms of legislation; (o) a spatial development framework which must include the provision of basic guidelines for a land use management system for the municipality; (p) the council s operational strategies; (q) applicable disaster management plans; (r) a financial plan, which must include a budget projection for at least the next three years; and (s) the key performance indicators and performance targets determined in terms of section 41.

37 34 >? $# ".9 #. To ensure that all relevant binding national and provincial legislation as well as other policies, programmes, strategies and available funds are considered in the IDP process, municipalities should be aware of all the relevant information. In order to use synergies and minimise costs, districts should provide local municipalities with the required information. To ensure that the IDP is in line with sector requirements and can attract sector budgets, opportunities to engage with national and provincial sector departments should be utilised to establish contacts for alignment and to outline the need for information on policies, programmes and funds. It is proposed that district municipalities, with the support of the provincial IDP coordinator, prepare a list of provincial legislation, plans, programmes and other important national information for the district framework workshop. A list of national legislation applicable to the functions of local government is attached as Annexure B. The following is an example of a list of provincial and national sectoral plans, programmes and policies: E % C Water Services Development Plan; Integrated Transport Plan; Integrated Waste Management Plan; Land Development Objectives (to be replaced by spatial planning as a requirement to be incorporated as a component in the IDP); Housing Strategies and Targets; Coastal Management Issues; Local Economic Development Strategies; Integrated Infrastructure Planning; Integrated Energy Planning; Spatial Framework; National Environmental Management Act Principles; Development Facilitation Act Principles; Environmental Implementation Plans; and Environmental Management Plans. SEE ANNEXURE B

38 35 >6? ". The following activity and resource plan is proposed, ensuing due consideration of the IDP process and the prescriptions contained in section 17 of the Municipal Finance Management Bill, which section provides that municipalities must prepare draft budgets ready for discussion by the end of February Municipal Finance Management Bill, 2001, Section 17. Budget Process 17. (1) The councillor for financial matters must (a) ensure that a draft annual budget containing the prescribed particulars is prepared at least a prescribed number of days, or if a number of days is not prescribed, at least four months, before the start of each financial year. Serial No 3 Planning Activity Type of Event Community Participation Time Required (Weeks) 1. PREPARATION Commencement Date: 18 June Process Plan Drafting and Approval Desk Work 1.2 District Framework Drafting and Approval District Workshop 4 Completed: 13 July 2001 Total Weeks 4 2. FIVE YEAR IDP PLANNING PROCESS 2.1 PHASE 1: ANALYSIS (a) Community and Stakeholder Development Rep Forum Workshop X 4 Analysis (b) Municipal Technical Development Analysis Desk Work 4* (c) Institutional Analysis Steering Committee 2* (d) Economic Analysis 4 (e) Socio-Economic Analysis Desk X 4* (f) Spatial Analysis Work 4* (g) Environmental Analysis X 4* (h) Legal Framework Analysis 4* (i) Leadership Guidelines Executive Mayor or 4* Special Resource Requirements Facilitation Specialists Specialists EXCO Chairperson (j) In-depth Analysis Rep Forum Workshop X 2 Facilitator Phase 1: Total Weeks PHASE 2: STRATEGIES (a) Vision, Mission and Values X 1 (b) Gap Analysis and Strategies Rep Forum Workshop X 3 (c) Link KPA s and Objectives to Sectoral Functions Desk Work 2 Phase 2: Total Weeks PHASE 3: PROJECTS (a) Performance Management Desk Work and Rep Forum Workshop Facilitator X 2 Facilitator (b) Identify Capital Projects Desk Work and Rep X 4 Forum Workshop (c) Identify specific Plans/Programmes Desk Work and Rep X 2* Forum Workshop (d) Sectoral Operational Business Plans Desk Work and Rep X 4* Forum Workshop Phase 3: Total Weeks PHASE 4: INTEGRATION (a) Integration of Processes Steering Committee and Rep Forum X 2* (b) Institutional Restructuring Desk Work and Rep X 4 Forum Workshop (c) Integrated Communication Plan Desk Work and Rep X 2* Facilitator Forum Workshop Phase 4: Total Weeks PHASE 5: APPROVAL (a) District Alignment District Workshop (b) Public Comments Rep Forum Workshop X 4 Facilitator (c) Provincial and National Alignment Steering Committee (d) Final Approval Councils Phase 5: Total Weeks 4 3. ANNUAL IMPLEMENTATION (a) Operational Business Plans Desk Work and Rep X 4* Forum Workshop (b) Municipal Budget Desk Work and Rep X 16* Forum Workshop (c) Monitor, Evaluate and Review Rep Forum Workshop X (d) Reporting Deskwork X Annual Implementation Total Weeks 20* TOTAL WEEKS 32 * To be done during other planning activities no separate time requirements

39 36 3 $ The costs for the IDP process have to be budgeted for by the municipality. This budget serves as a basis for applying for financial contributions from Provincial and National levels. It can also help the municipal management to monitor whether the planning costs are reasonable in relation to other budget items. In case the planning costs seem to be unacceptably high, one will have to reconsider the Process Plan in order to devise a less costly process, or additional contributions must be obtained from other sources. Crucial budget/expenditure items to be distinguished are: Consultant fees; Facilitator fees; Costs for disseminating information; Costs for workshops and meetings; and Printing costs. Depending on in-house capacities, the resources may be provided by the municipality or PIMS-Centres or hired from Consulting Firms.

40 * 37 %<; The district framework binds both the district municipality and the local municipalities in the area, and is aimed at proper consultation, co-ordination and alignment between the planning processes of the district municipality and the various local municipalities. Each district council must, in consultation with its local municipalities, adopt a district framework for integrated development planning in the area as a whole. The district framework must be developed during a joint workshop, and is binding on both district and local municipalities. A district municipality must conduct its own integrated development planning in close consultation with the local municipalities in that area. This district IDP must be aligned with the district framework and the IDP processes. Proposals of local municipalities must be taken into account in the drafting process. Municipal Systems Act, 2000, Section 27. Municipal Structures Act, 1998, Section 84(1)(a). Municipal Systems Act, 2000, Sections 29(2)(a). Municipal Structures Act, 1998, Section 84(1)(a). District Briefing session of IDP Managers regarding: IDP Planning Process and Approach Legislation (Municipal Structures and Systems Acts) Support Systems (PIMS-Centres, etc.) %<; All municipalities draft tentative programmes with alignment needs. District to arrange the workshop and to list National and Provincial binding legislation and planning requirements. District Framework workshop to: Co-ordinate the individual programmes and agree on the Framework Programme; Discuss and agree on alignment needs and mechanisms; and develop and agree on legally binding legislation and relevant planning requirements. Adoption of Framework by District Council. Framework to be considered and adopted by all local municipalities within the District boundaries.

41 38. %1! The following is a proposed table of contents, with due consideration to prescriptions contained in legislation: Introduction; Consultation procedures; Matters requiring alignment; Binding national and provincial plans, planning requirements and legislation; and Amendment procedures. >? The following will at least be addressed: Purpose of the framework Role players: District municipality; Local councils; and provincial and national government. Municipal Systems Act, 2000, Section (1) Each district municipality, within a prescribed period after the start of its elected term and after following a consultative process with the local municipalities within its area, must adopt a framework for integrated development planning in the area as a whole. (2) A framework referred to in subsection (1) binds both the district municipality and the local municipalities in the area of the district municipality, and must at least (a) identify the plans and planning requirements binding in terms of national and provincial legislation on the district municipality and the local municipalities or on any specific municipality; (b) identify the matters to be included in the integrated development plans of the district municipality and the local municipalities that require alignment; (c) specify the principles to be applied and co-ordinate the approach to be adopted in respect of those matters; and (d) determine procedures (i) (ii) for consultation between the district municipality and the local municipalities during the process of drafting their respective integrated development plans; and to effect essential amendments to the framework >0?.. >?. It is proposed that the following persons and structures be involved in the alignment process: Between local municipalities and the district municipality: District: IDP manager and chairperson of the IDP representative forum; Local councils: IDP manager and chairperson of the IDP representative forum; PIMS-Centres; and Provincial IDP co-ordinator. Between district/local municipalities and provincial/national government: District IDP manager; Local IDP manager; Provincial IDP co-ordinator; Provincial / national senior sector department officials; and Senior officials of relevant service providers (Eskom, Water Board, Telkom, etc) The following alignment process is proposed: District IDP steering committee to present alignment needs at district framework workshop. At workshop: Compile joint list of alignment needs and discuss mechanisms to ensure alignment; Agree on alignment mechanisms, as well as time frames and role players to be involved; and

42 agree on a final decision-making mechanisms to dissolve disputes or differences between local municipalities and between local and district municipalities. District municipalities to engage (meeting and written communication) with provincial and national departments and other stakeholders to outline district alignment needs and expectations and agree on mechanisms. Each municipality (local and district) to consider alignment when devising their process plans (process programme with time frame). >? # # The following alignment structure is proposed: 39 % Chairperson District IDP Representative Forum Chairperson Members Local IDP Representative Forum Chairpersons District IDP Manager Local IDP Managers PIMS-Centres and/or Provincial IDP Co-ordinator Keep the number of alignment workshops/meetings to a minimum, due to the financial and time resources required; and utilise bilateral communication methods telephonic / electronic / written communication as far as possible. >?. # #.. The proposed process for consultation between the district municipality and the local municipalities during the IDP planning process is as follows: Phase 1: Analysis. District municipalities may perform analysis related to region-wide issues and co-ordinate and align key development priorities with the local municipalities. Phase 2: Strategies. Local municipalities should be invited to district strategic workshops to jointly discuss the most appropriate problem-solving strategies. Provincial and national specialists and competent resource persons from civil society could be invited to join this process, which will be facilitated by staff of the district-level PIMS-Centre. Phase 3: Projects. Project and programme planning will require co-ordination and alignment between the district and local municipalities.

43 Phase 4: Integration. During this phase local and district municipalities will ensure the integration of the different processes and will consolidate the institutional restructuring and communication plan, in order to finalise their respective IDP s and programmes. Phase 5: Approval. The district will play an important role in horizontal (crossborder issues) and vertical co-ordination. Local and district-level planning will therefore be parallel, rather than in a one-sided, bottom-up or top-down manner Phases Alignment Activity Local municipality Phase 1: Analysis Phase 2: Strategies Phase 3: Projects Phase 4: Integration Phase 5: Approval Key Development Priorities X X District-level Strategic Workshop X X Project Planning Co-ordination X X Integration of Sector Programmes X X (Provincial/ National) Submission of Draft IDP X X Comment on Draft IDP X X Compilation of District-level X Summary of local IDPs Local Government/ Provincial/ National % PHASE 1 ANALYSIS PHASE 2 STRATEGIES PHASE 3 PROJECTS PHASE 4 INTEGRATION PHASE 5 APPROVAL PROVINCIAL Regional Issues Regional Projects Approval by District Council DISTRICT Draft District IDP Horizontal and Vertical Co-ordination and Integration LOCAL Local Issues Local Projects Draft local IDP Approval by Local Council

44 41 # Matters that may require alignment may include the IDP process (5 phases), as well as section 84 (1) and (2) of the Systems Act (the division of powers). E LIST OF MATTERS THAT MAY NEED ALIGNMENT THROUGHOUT THE DISTRICT IDP Process Programmes IDP Process Time Frames IDP Table of Contents Five Year Planning Process - Phase 1: Analysis (Co-ordinate Key Development Priorities) - Phase 2: Strategies - Phase 3: Projects - Phase 4: Integration - Phase 5: Approval (Requires Horizontal and Vertical alignment) Annual Implementation - Sectoral Operational Business Plans - Municipal Budgets - Monitoring, Evaluation and Reveiwing - Reporting Section 84 (1) and (2) The Division of Powers - Electricity and Gas Reticulation - Fire-fighting Services - Local Tourism - Municipal Airports - Municipal Planning (IDP) - Municipal Public Transport - Municipal Public Works - Municipal Health Services - Water and Sanitation Services Potable Water Supply Systems Domestic Waste-water Sewage Disposal Systems - Cemeteries, Funeral Parlours and Crematoria - Markets - Municipal Abattoirs - Municipal Roads - Refuse Removal, Refuse Dumps and Solid Waste Disposal >? $# ".9 #. Provincial legislation will differ from one province to another. It is however important that provincial plans and legislative guidelines be assessed and listed as part of the district framework: District municipalities, with the support of the provincial IDP co-ordinator, must prepare a list of provincial legislation and other important national and provincial information for the framework workshop; and at the workshop, the district municipalities must provide the above-mentioned list and familiarise the local municipalities with the content thereof.

45 The following is an example of a list of provincial and national sectoral plans, programmes and policies: 42 A list of national legislation applicable to the functions of local government is attached as Annexure B. >?. Proposed principles and procedures for monitoring the process plan, and the amendment of the district framework are as follows: Each municipality will be responsible for monitoring its own process plan and ensure that the district framework is being followed, as agreed. Proposed procedures for amendments: E SECTOR PLANS, PROGRAMMES, POLICIES AND FRAMEWORKS Water Services Development Plan; Integrated Transport Plan; Integrated Waste Management Plan; Land Development Objectives (to be replaced by spatial planning as a requirement to be incorporated as a component in the IDP); Housing Strategies and Targets; Coastal Management Issues; Local Economic Development Strategies; Integrated Infrastructure Planning; Integrated Energy Planning; Spatial Framework; National Environmental Management Act Principles; Development Facilitation Act Principles; Environmental Implementation Plans; and Environmental Management Plans. SEE ANNEXURE B Establish a committee of IDP managers that meet after the completion of each phase to jointly assess progress and decide on amendments; Each local municipality must inform the district municipality of deviations from the action programme that affect district-wide activities (e.g. the identification of municipal priority issues is delayed and the district-wide strategic workshop has to be postponed); The district municipality has the mandate to decide when and how an amendment takes place, and therefore postpones an activity or continues with the agreed programme; or all the relevant municipalities have to reach agreement before the framework is amended.

46 % % DISTRICT FRAMEWORK Co-ordinated at District Level IDP Managers coordination and preparation for workshop District Local Provincial District Framework Workshop Adoption of District Framework by the District Council Local and District Councils Local and District Councils PROCESS PLAN Drafted by all municipalities Executive Committee/ Mayoral Committee: Nomination of IDP Manager Establishment of IDP Steering Committee IDP Steering Committee Meeting: Decision on Roles and Responsibilities Identification of Stakeholders and role players Advertisement Terms of Reference for IDP Representative Forum Draft Action Programme with Time Frame Metropolitan Councils IDP Steering Committee Meeting: Detailed Process Programme with timeframe and resources Mechanisms and procedures for: - Public Participation - Alignment Give Notice to the Public Proposal for the IDP Representative Forum Members Report to Municipal Council for Consideration Municipal Council Meeting: Adoption of Process Plan: - Institutional Arrangements - Roles and Responsibilities - IDP Representative Forum - Programme - Timeframe - Mechanisms for: Alignment Public Participation - Provincial and National Binding Legislation - Budget TIMEFRAME 1 st Week 2 nd Week 3 rd Week 4 th Week 18 June July

47 ( 44 ( &) &) $!# *) + -) $+.,) 0 ( *) &).. *). %1! ( -) % 3 &) *).. :. & -) #. :. *,) 6. :. - 7) # :., 4) " :. 7 (,) &) $.... *) $#. -) #9 " "1#,) #

48 % 3 ;( 3 PHASE 1: ANALYSIS PHASE 2: STRATEGIES PHASE 3: PROJECTS PHASE 4: INTEGRATION PHASE 5: APPROVAL Legal Framework Analysis Leadership Guidelines Community and Stakeholder Analysis Municipality Technical Analysis Institutional Analysis In-depth Analysis and Identify Key Development Priorities Vision, Mission and Value System Gap Analysis in terms of: Vision and Mission Identified Key Development Priorities Develop Strategies: Key Performance Areas (KPA s) Development Objectives Performance Management System Compile 5 Year Sectoral Operational Business Plans. Identify and Prioritise: Capital Investment Projects Specific Project Programmes Integration of Processes Institutional Restructuring (Transformation) Compile an Integrated Communication Plan Approval District Alignment Public Comments Provincial / National Alignment Final Approval by the Municipal Council Economic Analysis Socio-Economic Analysis Spatial Analysis Link KPA s and Development Objectives to Sectoral Functions Environmental Analysis ANNUAL IMPLEMENTATION Annual Reporting Monitor, Evaluate and Review Annual Budget Sectoral Operational Business Plans 45

49 46 -) %" 3 # & Strategic management is the process whereby managers establish an organisation s long-term direction, set specific performance objectives and develop strategies to achieve these objectives in the light of all the relevant internal and external circumstances, and undertake to execute the chosen action plans. Strategic management basically comprises of the following: Defining the organisation s business and developing a strategic vision and mission as a basis for establishing what the organisation does and doesn t do and where it is heading; Formulate strategies as well as strategic objectives and performance targets; Implementing and executing the chosen strategic plan; and evaluating strategic performance and making corrective adjustments in strategy and/or how it is being implemented in light of actual experience, changing conditions, and new ideas and opportunities. Integrated development planning may be defined as the strategic management process utilised by local government. It is a process through which municipalities prepare a strategic development plan, for a five (5) year period. The IDP is the product of the IDP process. The IDP is the principal strategy planning instrument which guides and informs all planning, budgeting, management and decision-making processes in a municipality.

50 >? % ( D3 Process Plan District Framework Mayoral Committee/Executive Committee Councillors Heads of Departments/Senior Management Staff (All levels) Ward Committees Stakeholders and Community Provincial Government National Government Executive Mayor/Chairperson of Executive Committee Municipal Manager 3 Development Opportunities and Constraints Service and Infrastructure Backlogs Community Needs $ 3 3 Key Performance Areas (KPA s) Strategies and Development Objectives Key Performance Indicators (KPI s) Performance Targets Projects/Programmes/Plans Operational Business Plans VISION AND MISSION (Desired Future State) % Finance/Equipment/Material Human Resources Performance Management Communication Municipal Council (Institution) Committees Decision-making process Organisational Structure Policies/Procedures By-laws Delegated Powers Systems $ Monitor, Evaluate and Reporting % 47

51 * 48 ( &) 3 During this phase an analysis of the existing problems faced by people in a specific municipal area is conducted. The issues normally range from lack of basic services to crime and unemployment. The identified problems are considered and prioritised according to levels of urgency and/or importance, thus constituting the key development priorities. During this phase it is important that a municipality understands not only the symptoms, but also the causes of problems in order to make informed decisions on appropriate solutions. Stakeholder and community participation is very critical in this phase. The municipality must not make assumptions on what the problems are in its area. The people affected should be involved in determining the problems and priorities. E - Assessment of the existing level of Development (with specific reference to service gaps) - Key Development Priorities (Problems) - Information on dynamics and causes of Key Development Priorities - Information on available resources, potentials and assets It is important to determine the key development priorities, due to the fact that the municipality will not have sufficient resources to address all the issues identified by different segments of the community. Prioritisation assists the municipality to allocate scarce resources to those issues highlighted as more important and/or urgent. The municipality must be aware of existing and accessible resources and of resource limitations in order to devise realistic strategies. PHASE 1: ANALYSIS 1. LEGAL FRAMEWORK ANALYSIS 2. LEADERSHIP GUIDELINES 3. COMMUNITY AND STAKEHOLDER ANALYSIS 4. MUNICIPALITY TECHNICAL ANALYSIS 5. INSTITUTIONAL ANALYSIS 6. ECONOMIC ANALYSIS 7. SOCIO-ECONOMIC ANALYSIS 8. SPATIAL ANALYSIS 9. ENVIRONMENTAL ANALYSIS 10. IN-DEPTH ANALYSIS AND IDENTIFY KEY DEVELOPMENT PRIORITIES

52 49 *'& # %1!.. In terms of the Constitution, local government is in charge of its own development and planning processes. This Constitutional mandate to relate management, budgeting and planning functions to objectives, clearly indicates the intended purpose of the municipal IDP: To ensure sustainable provision of services; To promote social and economic development; To promote a safe and healthy environment; To give priority to the basic needs of communities; and to encourage community involvement. It is crucial that the relevant legislation and policies regulating integrated development planning, be thoroughly analysed to ensure that the process and its outputs address the principles outlined in the legal framework. (See Annexure A ) The minimum required outputs are: Identify the key development priorities that must be addressed; Identify roles and responsibilities; The following legislation must at least be analysed in terms of the Process: The Constitution Municipal Structures Act, 1998 Municipal Systems Act, 2000 Development Facilitation Act, 1995 White Paper on Local Government, 1998 National and Provincial Regulations Municipal Finance Management Bill, 2000 Determine the process regarding the drafting up to the adoption of the IDP by the municipal council; Identify the minimum prescribed plans, programmes and projects; and identify the prescribed time frame. *'*.. SEE ANNEXURE B <( $ Municipal Manager IDP Manager Legal Practitioners Integrated development planning requires that all stakeholders within a municipal area participate in the process. It is however the primary responsibility of the council, its councillors, officials and staff to ensure that the IDP process is undertaken. This process belongs to municipalities and should thus be owned and controlled by such. The executive mayor or chairperson of the executive committee or chairperson of the committee of appointed councillors, should, in terms of the Structures Act, assume a strong leadership role in respect of the IDP process. It will be important for political leaders to provide clear planning guidelines and priorities, in terms of the expected deliverables over the next five (5) years. These planning guidelines will play an important role in the IDP process of a municipality and must be incorporated into the key development priorities, which will constitute the final output of phase 1 (Analysis).

53 The executive mayor or chairperson of the executive committee or chairperson of the committee of appointed councillors, may consider providing political planning guidelines such as the following: 50 ( E Introduction This municipality should make an important contribution towards creating a humane society. The municipality, all councillors and officials, must work selflessly to improve service delivery and to address service backlogs. The municipality must be accountable, sensitive and responsible to the needs of the people. The immediate task is to ensure effective institutional transformation whilst maintaining and improving service delivery and expanding infrastructure. Planning Guidelines The following are viewed as important challenges: Providing a free basic level of services such as Water and Electricity to every household; Improving the level of service delivery and the attitude toward the public; Eradication of infrastructural backlogs in terms of: Water; Electricity; Roads; Storm-water; Sanitation; and Solid Waste Containing the spread of HIV/Aids; Improving the Safety and Security of our communities by combating crime; Improving Infrastructural maintenance; Improving community participation and communication; Introducing an effective complaint solution-orientated system; Promoting a client-orientated culture by embracing Batho Pele (People First); Enhancing Local Economic and Social Development; Creating Jobs; Enhancing Tourism; The introduction of a Performance Management System; Speeding up Institutional Transformation; Constant Human Resource Development in the municipality and community; and improving Financial Management Systems and Fiscal Discipline. *'-!.. The purpose of this analysis aims to ensure that the IDP process is people-driven and that the community s needs and identified key development priorities are duly included and considered, at grass roots level. (A proposed pro forma is attached as Annexure C )

54 51 Proposed Institutional Arrangements: Ward Committees to identify: Development Needs (Basic and Non-basic) Key Development Priorities 3 Stakeholder Representatives: Business Civil Society, etc. To identify: Development Needs Key Development Priorities Traditional authorities to identify: Development Needs (Basic and Non-basic) Key Development Priorities IDP Representative Forum will consolidate the reports received It is important to inform the Public and specific Stakeholders of the IDP process and to encourage their participation. The minimum outputs required will be the following: A summary of community s/stakeholders identified key development priorities, differentiated by: Location; Social categories; and Gender. It must at least address the following: Water; Electricity; Roads; Storm water; Sanitation; HIV/Aids; Health; Safety and security; Solid waste; Housing; Job creation; and Sport and social facilities. All role players will be informed by the IDP Representative Forum of what the required outputs are. A programme and time frame will be agreed upon A summary of community/stakeholder resources and initiatives that will assist and address the identified key development priorities. <( $ IDP Representative Forum act as co-ordinating body. Ward Committees co-ordinated by Ward Councillors All Stakeholder Organisations Traditional Authorities % Ward Committee and Stakeholder Workshops and a co-ordinating workshop arranged by the IDP Representative Forum

55 52 *',.. The purpose of this analysis aims to evaluate and determine the development status of the municipality and to provide basic facts and figures related to the current situation, trends and dynamics. (A proposed pro forma is attached as Annexure C ) The minimum required outputs are: A technical assessment of service and infrastructural backlogs, such as: Roads and storm water; Water; Sanitation; Electricity; Solid waste; Health services; Safety and security; Housing; Job creation; Payment for services level; and Sport and social facilities. The above-mentioned backlogs must be localised (where) and target-group specific; Basic demographic figures; Available financial resources; and Institutional capacities, etc. % A Steering Committee Workshop will co-ordinate the inputs received from the different Departmental Technical Officials <( $ Municipal Manager and/or IDP Manager IDP Steering Committee should co-ordinate the process Departmental Technical Officials of the municipality should compile the data within their field of responsibility/expertise *'7... The purpose of this analysis is to ensure that existing institutional strengths and weaknesses are identified and taken into consideration when development strategies, projects and programmes are considered. It also serves the purpose of addressing the institutional problems of the municipality. An internal analysis of the institution is done by means of an investigation of its capabilities. It includes an investigation of the organisation s internal systems and functions and those resources which are at the disposal of the municipality. ( A strength is something a company is good at doing or a characteristic that gives it an important capability. A strength can be a skill, a competence, a particular organisational resource or competitive asset, or something the company has done that puts it in a position of market advantage. <; A weakness is something a company lacks or does poorly (in comparison to others) or a condition that puts it at a disadvantage. A weakness can be strategically important or not, depending on how much it matters in the competitive situation the company finds itself in. The minimum issues to be considered are the following: Organisational structure; Communication; Finance; Marketing and public relations; Decision-making process; General management; Human resources; Equipment/material; Policies, procedures and by-laws; A current organogram of the municipality (Administration and Political) Overview of Institutional Strengths and Weaknesses of the municipality in relation to the requirement of being a developmental municipality

56 53 Administration; Investment capital; Complaint management system; IT and other systems; Performance management; Specialist skills; Industrial relations; Staff morale; Delegated powers and functions, etc. <( $ Municipal Manager must co-ordinate the process Assisted by a qualified and independent facilitator IDP Manager, Head of Departments and Senior Officials must participate % A workshop facilitated by a qualified and independent facilitator An example of strengths and weaknesses in terms of an institutional analysis: E STRENGTHS Competent top management Open communication with interest groups, being local councils, provincial government, business etc. Loyal and willing personnel core New and modern offices Stable income base Model for equitable distribution of funding Image of clean administration Strong financial position 5 year bulk infrastructure plan Focused in terms of programmes Information management Asset management Total Quality Management Loyal Staff WEAKNESSES Technological and technical equipment Internal communication Productivity Investor marketing Disadvantaged areas: Infrastructure Management and administration Personnel Uncertainty with regard to change Fears of taxation of pension Lack of training Motivation Fragmented database Lack of proper GIS Insufficient tax base/incoming funds Public relations, i.e. marketing towards tax payers, community liaison Marketing/publicity about role of district municipality Councillors: lack of training Asset Management Strengths are important building blocks for Strategy! Weaknesses are important and may represent Key Priority Issues that need correction *'4.. The purpose of the economic analysis is to ensure that municipal development strategies, sectoral plans, projects and programmes take existing economic opportunities and threats of the municipal area into account. Basic Economic Data Major Economic Trends Major Economic Opportunities Major Economic Development Constraints

57 54 The following factors must at least be considered: Total gross geographic product (GGP) for the area (comparative statistics with other towns/cities/metro s); Percentage employment and GGP contributions by area (within a metro, district or local municipality); Economic sectors active in the area; Economically active population by economic sector in the area; Value of building plans and buildings constructed; Business turnovers arranged in categories and worked out as percentages; Dates existing businesses were started; Informal sector statistics breakdown of type of activities; and economic growth/decline per sector. *'2 :.. <( $ Can be done by one of the technical officials of the municipality, based on available reports and in consultation with economic stakeholders and promotion agencies % No workshop is required The purpose of the socio-economic analysis is to ensure that the municipality s strategies and programmes duly consider the needs of disadvantaged and marginalised population groups, in order to deal effectively with povertyreduction and gender equity. The following factors must at least be considered: Gender statistics; Age statistics; Economic active population; Income distribution statistics; Indigents percentage of population; Per capita income; HIV/Aids statistics; Inter-link between poverty and HIV/Aids; Correlation between gender and HIV/Aids; etc. $3 % To perform the analysis a qualified expert is necessary: Social Development Official and/or A Qualified Expert (Consultant) No workshop is required IDP Representative Forum Representatives of the following groups/stakeholders are important: Disadvantaged Social Groups Poverty Groups Women Youth Aged Residents, Communities and Stakeholders priority needs will be categorised by: Socio-economic category Gender Age Group Households affected by HIV/Aids If necessary, disadvantaged groups should be represented by competent people/individuals (nominated by such groups) The Social Development Official of the municipality should be a member of the IDP Steering Committee to ensure sensitivity towards poverty and gender issues

58 55 *'5.. The purpose of the spatial analysis is to ensure that the municipality s spatial strategies and land-use management decisions are based on a general awareness of: Spatial constraints, problems, opportunities, trends and patterns; The necessity for spatial restructuring; The need for land reform; and the spatial dimension of development issues. Mapping the spatial dimensions of development issues identified in: - Community and Stakeholder Analysis and - Municipality Technical Analysis. Mapping major spatial: - Patterns; - Trends (such as migration patterns); and - Threats and Opportunities. Mapping of spatial restructuring; mapping of Land Reform Issues; etc. It is important to gather all available mapped information in the municipal area. Use these maps, whether it is in digital format or paper copies, to compile a base map and a number of overlays which will relate one overlay s information to another. If a geographic information system (GIS) is not available, the maps can be prepared on transparent plastic and overlaid manually. Prepare the following maps: >? $. Develop a base map that includes: <( $ Municipalities with a Planning Department/ Section will utilise the Planning Officials to conduct the Analysis Municipalities without planning capacity should engage a spatial planner for this purpose Broad actual land use (industrial, mining, agricultural, open spaces, residential, commercial); Major transport routes (including roads, railways, taxi routes, bus routes, airports, harbours and stations); and cadastral information such as erf boundaries, street blocks, suburb or farm and administrative boundaries, as well as significant obstacles to development. >0? #. Use the census data for your area, which is broken down into voter enumerator areas to map the following information: Population distribution which shows population density by area. Highlight areas of high population density (>150 persons per ha), medium population density ( persons per ha) or low population density (<50 persons per ha); Intra-regional migration patterns including daily commuting into and out of the municipal area and long-term migration into and out of your area. Show these movement patterns by means of arrows. The thickness of the arrow should reflect the magnitude of the migration. If possible write the actual number of people moving next to each arrow; and income distribution using broad income categories, for example, monthly household incomes of R0-R999; R1 000-R1 999; R2 000-R2 999; R R3 999; R4 000-R7 999; R

59 56 >? To clarify the current opportunities and constraints on future development, map information on water, sanitation, solid waste, public telecommunications and electricity capacity. Highlight areas of spare capacity in the existing system and areas of constraint (that is, areas with no infrastructure, areas with greater demand than can currently be supplied or areas with no spare capacity). Consider both the capacities of bulk provision and local reticulation. >?. " To clarify the physical impediments, constraints and opportunities on future development, map the: Important natural features (mountains, rivers, wetlands, vegetation types) or resources (e.g. minerals, marine resources); Environmentally sensitive conservation and recreation areas; Slope gradients; Noteworthy geological conditions such as areas of under-mining or dolomitic areas with potential subsidence problems; Soil conditions particularly indicate those areas susceptible to erosion or with poor stability; and shade areas where these factors constrain and/or prevent development due to excessive financial implications or because of potential damage to the environment. >? ". Indicate on a map the location of significant economic activities in the area (industrial, mining, commercial, tourism, etc.). Map the location of significant formal and informal business areas. >+? 9." %. Map social facilities (e.g. schools, clinics, hospitals, crèches) recreational facilities (e.g. community halls, sports fields) and administration facilities (e.g. service pay points, council buildings). Highlight any areas that might be poorly served by social, recreation and administration facilities. Each municipality should establish a basic system of spatial information (if necessary supported by PIMS-Centres)

60 57 >#? 1 ". Highlight the main growth and development trends using symbols to indicate: Areas of actual land use change (both residential and non-residential) that has occurred over the last five years; Areas of economic growth and decline; Areas experiencing an influx or outflow of people; Areas experiencing an increase or decrease in property values; % No workshop is required to conduct the Spatial Analysis Areas with housing shortages or overcrowding; Areas of significant informal housing developments; and areas where land invasions have occurred. Show any linkages and corridors that are developing between these areas and plot all national, provincial and local development projects and initiatives occurring in the municipal area. >? " %1! A spatial development framework reflected in a municipality s IDP must: Give effect to the principles contained in Chapter 1 of the Development Facilitation Act, 1995 (Act No 67 of 1995); Municipal Planning and Performance Management Regulations, 2001, Section 4. Set out objectives that reflect the desired spatial form of the municipality; Contain strategies and policies regarding the manner in which to achieve the objectives referred to in the paragraph above, which strategies and policies must: Indicate desired patterns of land use within the municipality; Address the spatial reconstruction of the municipality; and provide strategic guidance in respect of the location and nature of development within the municipality; Set out basic guidelines for a land use management system in the municipality; Set out a capital investment framework for the municipality s development program; Contain a strategic assessment of the environmental impact of the spatial development framework; Identify programmes and projects for the development of land within the municipality;

61 Be aligned with the spatial development frameworks reflected in the IDP s of neighbouring municipalities; and Provide a visual representation of the desired spatial form of the municipality, which representation: Must indicate where public and private land development and infrastructure investment should take place; Must indicate desired or undesired utilisation of space in a particular area; May delineate the urban edge; Must identify areas where strategic intervention is required; and must indicate areas where priority spending is required. 58 *'/ ".. The purpose of the environmental analysis is to ensure that municipal development strategies, projects and programmes take existing environmental opportunities and threats (problems) into consideration, as well as environmental assets which require protection or controlled management. <( $ One of the technical officials of the municipality can conduct the analysis based on available reports and consultation with environmental stakeholders In district municipalities it should be conducted at district level with local level input A list of major existing environmental problems with a brief description of each: - Location; - People affected; - Magnitude of problem; and - Causes. A list of major environmental threats and risks (including disaster risks) with a short description; A list of environmental opportunities with a brief description. % No workshop is required The following factors must at least be considered: Description of climate in area (temperature, wind, rainfall); Topography; Geology (dolomite areas, slope stability, etc); Discussion of surface water (vlei areas, rivers, etc); Ground water; Water quality (impact of development on surface water); Noise (impact on population in the area); Air quality (pollution); Soils and land (agricultural potential); Flora (natural vegetation); Fauna (red data species and areas where they occur); Cultural and historical sites; Disaster risks; water pollution; etc.

62 *'&8 :... + ; ". #. 59 The purpose of the in-depth analysis and consolidation of the key development priorities and planning guidelines is to ensure that strategies, projects and programmes are based on a thorough knowledge of all the relevant key development priorities identified by the different studies, the legal requirements and specific leadership guidelines. An important facet of the in-depth analysis will be to analyse and to consolidate the key development priorities, leadership guidelines, opportunities, constraints, trends, etc. identified by the different analysing processes. A specific challenge will be to evaluate and integrate the outputs of the community and stakeholder analysis with those of the municipality technical analysis. Analysis of: - Precise nature of an issue: * basic or non-basic * quantify * standard * affected groups * location (where) * time frame - Causes and impact of an issue - Problem solving potentials and initiatives - Impact of legislation and policies on issues; and - impact of leadership guidelines Consolidate the process by evaluating all identified Key Development Priorities and to agree on the final list of issues that need to be addressed (a short description and desired outcomes should be included) <( $ The IDP Steering Committee will coordinate the process The In-depth Analysis can be done by a municipality depending on information requirements and the in-house capacities Local qualified people should be involved (such as teachers, health officers, etc.) Where issues are common to several municipalities in an area, district municipalities should be tasked to organise the In-depth Analysis % Various workshops might be required The final recommendations will be presented to the IDP Representative Forum by the IDP Steering Committee If adopted the final recommendation of this phase will be submitted to the Municipal Council An Example of identified key development priorities: KEY DEVELOPMENT PRIORITIES E The Key Development Priorities identified are summarised as follows: (1) Infrastructural Priorities Improvement and maintenance of: Roads (tar and gravel); Electricity provision; Storm-water drainage systems; Public transport systems; Water distribution networks; Sewerage/sanitation network systems; Housing; Sport facilities; Community facilities, e.g. Libraries, community halls, etc; Cemeteries; Open spaces; Health care centres; Recreational facilities; Safety and security facilities, e.g. police stations, municipal police satellite stations, etc. (Continue)

63 60 KEY DEVELOPMENT PRIORITIES (Continued) (2) Social Priorities The reduction of the spread of HIV/Aids; Community development; Air and water pollution; The provision of housing/housing support centres; The reduction of the crime rate; Proper traffic safety; Proper policing (municipal policing, as well as support to the SAPS); Proper emergency services; The promotion of equity, specifically regarding disadvantaged people (e.g. women, youth, disabled and aged people); and proper disaster management regarding: Train collisions; Air disasters; flood disasters; etc. (3) Spatial Priorities An effective land-use management system; A compact urban structure; The implementation of a proper environmental management plan; and need for spatial integration. (4) Economic Priorities Job creation for unskilled, semi-skilled and skilled residents; The promotion of human resource development and the creation of a skills register; The implementation of a proper policy for informal economic sectors; The formulation and implementation of a: Local Economic Development Plan; and Marketing Plan. Support to national job creation programmes and community based enterprises. (5) Institutional Improvement of the level of payment for services; Improvement of skills levels (capacitation) of councillors and officials; The establishment of satellite municipal offices (e.g. customer care centres); Proper communication between Council and communities; Proper revenue base; Applicable rates and taxes according to the level of services provided; Change in culture and operations at Council level; Addressing of land ownership and land tenure issues; Eradication of corruption and nepotism; Participatory IDP process; Proper management systems; Proper information technology systems; Adhere to the principle serving our people ; Productivity of staff; Proper equipment; Effective decision-making process; Proper billing system; and adequately trained and skilled staff.

64 - 61 ( *) PHASE 2: STRATEGIES 1. INTRODUCTION 2. VISION, MISSION AND VALUE SYSTEM 3. GAP ANALYSIS AND STRATEGIES 4. LINK KPA S AND OBJECTIVES TO SECTORAL FUNCTIONS -'& Once the municipality has determined the key development priorities affecting the people of the area and the causes thereof, strategy formulation commences, which brings into play the critical managerial issue of how to achieve the targeted results in light of the municipality s situation, needs and prospects. Strategies constitute the game plan or map to assist the municipality to progress from where it is to where it wants to be. -'*.9... >?. The vision is a statement of what the municipality seeks to achieve. It is directed towards the future and briefly states the municipality s purpose, its reason for existence. A vision should express the essential purpose of the municipality, ideally in one, concise, sentence. This statement should not change even if the internal Dream An ideal Desired future result Creative Give a sense of direction Phrased in simple terms and external environmental factors impacting on the municipality change, unless a major development takes place which changes the purpose of the municipality s existence.

65 The vision provides the direction for a municipality s strategies, objectives and implementation plans. The staff of a municipality must therefore be able to understand and identify with its vision. The vision statement communicates to customers (the community) what they can expect from the municipality. It enables the community to measure the performance of the municipality. It can be used in official documents, displayed in municipal facilities and appear on community newsletters and public notices. An example of a vision: ( 62 Vision must be short enough to become popular, but specific enough to refer to the characteristics, problems and potentials of the municipality The IDP Representative Forum should devise ways and means to popularise the vision A Developmental municipality providing quality of life to all its people >0?.. An organisation s mission has to do with what the organisation does as opposed to where it wants to be (vision) or what it views as important (values). A clear statement of what an organisation does can act as a focal point for ensuring that the municipality remains focused on core business. There is arguably no greater cause of organisational incompetence than straying from the fundamental purpose for which the organisation was set up in the first place. Sense of purpose Main function and products Reason for existence Must achieve the vision Utilize all resources To survive and thrive, especially in today s world, municipalities need to concentrate on and specialise in their core functions, while leaving their non-core functions to other organisations who are themselves specialists in these functions. Vision sets the direction, values tell you about the rightness of the direction, and mission clarifies that what you do as an organisation is in line with your direction and values. In practice, however, all these concepts can be included in one statement or a series of statements. An example of a mission: The municipality is committed to improve the quality of life of its community by: Promoting social and economic development; Providing and maintaining affordable services; The efficient and effective utilisation of all available resources; and effective stakeholder and community participation.

66 63 >?. The values of an organisation describe the relationship between people within an organisation as well as the relationship between the organisation and its customers. This involves a description of the business practices applied (for example, human resource development) and the value placed on certain principles (for example, loyalty, accountability, etc.). The values endeavour to reflect the culture that prevails or should prevail in a specific organisation. The software on which the municipality runs Mental Attitude Focus Standards Commitment Relationships Must address the internal organisation and the external customers / relationships Values are beliefs, commitments and principles that guide everyday decision-making, whether consciously or subconsciously. They are what individuals and organisations believe to be truly important. Organisational values develop over time, and accepted behaviours and norms emerge as a result of these values. A value framework is the very heart of the decision-making process. When an organisation has defined what principles are important, in every aspect of the business, some decisions and choices will immediately be obvious. In an organisation with a firm set of values that are clearly communicated, well understood and shared, people will be able to make sound decisions that are in line with what the organisation truly believes.

67 An example of a value system: Municipal Systems Act, 2000, Schedules 1 and INTRODUCTION Driven by the aspirations of our people, we will respect and uphold the Constitution of the Republic of South Africa. We commit ourselves to the Code of Conduct for Councillors and Officials in the Municipal Systems Act. We commit ourselves to the principles of sound financial management. VALUES We subscribe to the principles of Batho Pele: - Consultation Citizens should be consulted about service levels and quality when possible - Service Standards Citizens must be made aware of what to expect in terms of level and quality of services - Access Citizens should have equal access to the services to which they are entitled. - Courtesy Citizens should be treated with courtesy and consideration - Information Citizens must receive full and accurate information about their services - Openness and transparency Citizens should be informed about government departments, operations, budgets and management structures - Redress Citizens are entitled to an apology, explanation and remedial action if the promised standard of service is not delivered - Value for money Public services should be provided economically and efficiently We subscribe to Co-operative Governance. As a partner in governance we will promote and constructively participate in Regional, Provincial and National programmes. % A workshop is required to determine the vision, mission and value system <( $ The IDP Representative Forum must determine the vision, mission and values The vision, mission and values should be popularised through workshops, roadshows, the media and other communication resources at the disposal of the municipality. (See Integrated Communication Plan page 104)

68 65 -'-.. #. The first step is to assess the gap between the current reality in terms of development and the provision of services, and where the municipality desires to be in terms of its vision and mission. The next step is to identify strategies to bridge the gap. This is done as follows: Key performance areas (KPA s) are identified and are those areas in which the municipality has to excel to accomplish the vision and mission. KPA s are broad areas of focus. <( $ The IDP Representative Forum must perform the gap analysis IDP Steering Committee should facilitate and/or utilise a qualified facilitator. % A workshop involving the IDP Representative Forum is required development objectives are formulated in terms of the identified key development priorities and are linked to the KPA s. 3 IDENTIFY KEY DEVELOPMENT PRIORITIES Analyse the Gap and Identify Strategies VISION AND MISSION Where the organisation desires to be Key Performance Areas (KPA s) Development Objectives Determine Key Performance Indicators (KPI s) Setting Performance Targets Action Plan Identify Projects and Special Programmes An example of a gap analysis: 3 Current reality in terms of Key Development Priorities: Service Backlogs Infrastructure Social Spatial Economic Institutional KEY PERFORMANCE AREAS (KPA s): STRATEGIES: Infrastructure and Services; Social and Economic Development; Financial Management; HR Development and Institutional Transformation; Marketing and Communication; and Democratic Governance. DEVELOPMENT OBJECTIVES: Formulated in terms of the identified Key Development Priorities and are linked to the KPA s Desired Future State Vision A Developmental municipality providing quality of life to all its people Mission The municipality is committed to improve the quality of life of its community by: Promoting social and economic development; Providing and maintaining affordable services; The efficient and effective utilisation of all available resources; and effective stakeholder and community participation.

69 An example of development objectives regarding KPA s with specific reference to the KPA- Infrastructure and Services: 66 $D KEY PERFORMANCE AREAS 1. Infrastructure and Services DEVELOPMENT OBJECTIVES 1.1 To develop, maintain and upgrade the infrastructure through integrated planning, taking short, medium and long term needs into consideration, and fulfilling these within the parameters of sound financial management. Specifically in terms of the following infrastructure: Tar and gravel roads; Storm-water drainage systems; Electricity provision networks; Public transport systems; Water distribution networks; Sewerage/Sanitation networks; Housing; Sport facilities; Community facilities, e.g. libraries and community halls; Cemeteries; Open spaces; Health care centres; Recreational facilities; and Safety and Security facilities, e.g. police stations, municipal and metro police satellite stations. 1.2 To provide effective and affordable services to the total community where these are a direct function of the municipality. With specific reference to the following services: 2. Social and Economic Development 3. Financial Management 4. Human Resource Development and Institutional Transformation 5. Marketing and Communication 6. Democratic Governance Water provision; Electricity; Solid waste removal; Sanitation; Health services; Social development; Reduction of spread of HIV/Aids; Library services; Safety and Security; Emergency services; and Customer care system. Development Objectives in terms of each KPA should be formulated

70 67 -',! ; +. " 06 ".. It is now important to link the KPA s and development objectives to the municipality s sectoral departments. An example of the linking process the case of Infrastructure and Services: <( $ The IDP Steering Committee E KEY PERFORMANCE AREA 1. Infrastructure and services DEVELOPMENT OBJECTIVES SECTORAL DEPARTMENT(S) Civil Engineering Electricity Housing Community Services Health and Social Development Public Safety Marketing and Communications SECTORAL DEPARTMENT(S) 1.1 To develop, maintain and upgrade the infrastructure through integrated planning, taking short, medium and long term needs into consideration and fulfilling these within the parameters of sound financial management. Specifically in terms of the following: Tar and gravel roads; Storm-water drainage systems; Electricity provision networks; Public transport systems; Water distribution networks; Sewerage/Sanitation networks; Housing; Sport facilities; Community facilities, e.g. libraries and Community halls; Cemeteries; Open spaces; Health care centres; Recreational facilities; and Safety and Security facilities, e.g. police stations, municipal and police satellite stations. 1.2 To render need satisfying and affordable services to the total community where these are a direct function of the municipality. Specifically in terms of the following: Water provision; Electricity; Solid waste removal; Sanitation; Health services; Social development; Reduction of spread of HIV/Aids; Library services; Safety and Security; Emergency services; and Customer care system. Civil Engineering Civil Engineering Electricity Civil Engineering Civil Engineering Civil Engineering Housing Community Services Community Services Community Services Community Services Health and Social Development Community Services Public Safety Civil Engineering Electricity Community Services Civil Engineering Health and Social Development Health and Social Development Health and Social Development Community Services Public Safety Public Safety Marketing and Communications NOTE: This will be done in terms of each KPA and the identified Development Objectives

71 , 68 ( -) D PHASE 3: PROJECTS 1. INTRODUCTION 2. PERFORMANCE MANAGEMENT SYSTEM 3. SECTORAL OPERATIONAL BUSINESS PLANS AND PROJECTS,'& The core of the project and programme approach deals with the creation of high performance integrated project teams that operate in a co-ordinated manner across functional boundaries within the organisation. Specialist outsourced teams, which enhance the municipality s capacity, can be integrated into project teams. The actions and performance of project teams are co-ordinated and integrated by a project manager who maintains a continuous focus on the organisational needs. Moreover, project and programme managers ensure that the objectives and targets of the project deliverables are aligned, and remain aligned, with the strategic objectives of the municipality. The programme or project manager has the task of aligning the outcomes of the project with the strategic intent of the municipality. An appropriate definition for project management may be stated as follows: The coordinated and integrated management of a key issue that brings change and transformation in the organisation and achieve benefits of strategic importance.

72 69,'* + # >? <. + #= Broadly, performance management is a strategic approach to management that equips leaders and managers at different levels with a set of tools and techniques to regularly plan, continuously monitor, periodically measure and review the performance of an organisation in terms of indicators and targets for efficiency, effectiveness and impact within their own organisations. >0? $. Although a performance management system will be developed to address the unique situation that exist in each municipality, the Batho Pele White Paper (1997) contains a vision for managing performance within the broader public sector. It can be summarised as follows: $( Batho Pele is about delivering the best service to the customer (the public). It involves determining the customer s needs, and providing the best services to meet these needs. The Batho Pele framework consists of eight service delivery principles: Consultation Citizens should be consulted about service levels and quality and, as far as possible, given a choice about the services offered. Service Standards Citizens must be informed about the level and quality of services they can expect. Access Citizens should have equal access to the services, they are entitled to. Courtesy Citizens should be treated with courtesy and consideration. Information Citizens must receive full and accurate information about their services. Openness and Transparency Citizens should be informed about the key aspects of service delivery which affect them, e.g. budget decisions and service plans. Redress Citizens are entitled to an apology, explanation and remedial action if the promised standard of service is not delivered. Value for money Public services should be provided economically and efficiently.

73 70 >? < + #= The White Paper on Local Government (1998) was developed within this Constitutional framework. The White Paper outlines the vision for a new developmental local government system. It spells out the framework and programme in terms of how the inherited local government system would be radically transformed. The White Paper identifies the following tools for realising developmental local government: Integrated development planning and budgeting; Performance management; and working together with local citizens and partners. Integrated development planning is seen as the primary tool which local councils could use to achieve its developmental objectives. Integrated development planning is a process meant to help local role players to plan better and effectively implement plans in municipal areas. The IDP process can assist municipalities to identify their needs and priorities, set objectives and indicators and organise them in a way that is consistent with the budget. The White Paper on Local Government states that the aims of a national performance management system are to: Assess the overall state of local government; Monitor the effectiveness of development and delivery strategies adopted by different municipalities and ensure that scarce resources are utilised efficiently; Provide an early warning signal for municipalities in difficulty; Allow municipalities to compare their own performance with that of similar municipalities across the country; Identify successful approaches or best practices and learn from one another; and provide a national set of performance indicators that municipalities may supplement in accordance with their unique differences/situations. The overall strategic objectives of the performance management system is to improve the performance of municipalities through: Creating pressures for change at various levels; Creating a cultures of best practices and encouraging shared learning among municipalities; Promoting accountability; Contributing towards the overall development of local government in the country; Helping to develop meaningful intervention mechanisms; and guiding the development of municipal capacity building programmes.

74 71 >? + # %1! The Structures Act and Systems Act are legislation developed to further the vision of the White Paper on Local Government. Section 19 of the Structures Act stipulates that a municipal council must annually review: The needs of the community; Its priorities to meet those needs; Its processes for involving the community; Its organisational and delivery mechanisms for meeting the needs of the community; and its overall performance in achieving the objectives set out in section 152 of the Constitution. The Systems Act provides the core principles, mechanisms and processes that are necessary to enable municipalities to move progressively towards the social and economic upliftment of local communities, and ensure universal access to affordable basic services. The Systems Act also creates an enabling framework for the core processes of planning, performance management, community participation, resource mobilisation and organisational change. (See page 72)

75 % %<; Parliament Annual Performance Report Policy/Legislation National (Minister) Setting of National Key Performance Indicators (KPI s) Provincial MEC Monitoring capacity Intervention when necessary Community Reporting Municipalities Monitoring and Measurement Review IDP Process Projects Local KPI s Performance Targets Performance Based Contracts Individual KPI s Performance Targets Source: Introduction to Performance Management for local government 72

76 73 >? " + # %1! Chapter six of the Systems Act outlines the following core components of the performance management system: Set appropriate performance indicators as a yardstick for measuring performance, including outcomes and impact, with regard to the municipality s development priorities and objectives set out in its IDP; Set measurable targets; Monitor performance; Measure and review performance at least once a year; and establish a process of regular reporting. The following is a diagrammatic illustration of how the system will work, based on the legislative requirements: % %<; Key Performance Areas (KPA s) and Development Objectives National and Provincial KPI s Provincial MEC Intervention when necessary Develop Local and Individual KPI s Develop Local and Individual Performance Targets Monitor Performance COMMUNITY PARTICIPATION Reporting Review and Evaluate Performance Community

77 >+?..0 " + #. It is the responsibility of the executive committee or executive mayor or a committee of appointed councillors to develop a performance management system. The IDP steering committee, assisted by experts if necessary, may be tasked to develop a performance management system which will then be submitted to the IDP representative forum and eventually to council for consideration. In developing its performance management system, a municipality must ensure that the system: Complies with all the requirements set out in the Act; 74 Municipal Systems Act, 2000, Sections 39 and 40:- 39. The Executive Committee or Executive Mayor of a municipality or, if the municipality does not have an Executive Committee or Executive Mayor, a committee of councillors appointed by the municipal council must - (a) manage the development of the municipality s performance management system; (b) assign responsibilities in this regard to the municipal manager, and (c) submit the proposed system to the municipal council for adoption. 40. A municipality must establish mechanisms to monitor and review its performance management system. Demonstrates how it will operate and be managed from the planning stage up to the stages of performance and reporting; Municipal Planning and Performance Management Regulations, 2001, Section 7 (2). Clarifies the roles and responsibilities of each role player, including the local community, in the functioning of the system; Clarifies the processes of implementing the system within the framework of the IDP process; Determines the frequency of reporting and the lines of accountability for performance; Relates to the municipality s employee performance management processes; Provides for the procedure by which the system is linked with the municipality s IDP process; and indicates how any general KPI s envisaged in section 43 of the Act will be incorporated into the municipality s planning and monitoring processes. A performance management system must be adopted before or at the same time as the municipality commences with the process of determining KPI s and performance targets in accordance with the IDP. Municipal Planning and Performance Management Regulations, 2001, Section 8.

78 75 >#?. + + #. In a nutshell, a performance management system will contain the following core elements: Municipal Systems Act, 2000, Section 41. Performance measurement; Performance monitoring, reviewing and evaluation; Performance auditing; Performance reporting; and Intervention. >? +. Performance measurement requires an objective framework for assessing performance. This framework is established by setting KPA s and clustering development objectives and key development priorities in terms thereof. The next step is to determine KPI s and to link it to performance targets. KPI s define how performance will be measured (e.g. number of households to receive electricity connections). Performance targets, on the other hand, identify the result to be achieved within a given time frame (e.g connections by the year 2003). >&? # ; +. >;A.? A municipality s performance management system must cluster the development priorities and objectives, referred to in section 26 (c) of the Systems Act, in respect of at least the following proposed KPA s: Infrastructure and services; Social and economic development; Institutional transformation; Democracy and governance; and Financial management. >*? # ; +. >;A.? KPI s are management tools, which assist in making performancebased decisions regarding strategies and activities. It could also assist in motivating and orientating staff towards achieving the set objectives. KPI s simply define how performance will be measured along a scale or dimension (e.g. number of houses to be built). The White Paper on Local Government stresses the need for involving communities, officials and organised labour in the development of KPI s. KPI s could also be used to communicate the achievements and results of the council for a specific period, to the relevant stakeholders, such as the community. Municipal Planning and Performance Management Regulations, 2001, Section 9. KPI s are also utilised to determine whether local government is delivering on its developmental mandate, provision of services and infrastructure. The municipality would also be in a position to determine whether its organisational structure is suitable to meet its development objectives. KPI s enforce accountability by the council to its electorate.

79 Whenever a municipality amends or reviews its IDP in terms of section 34 of the 76 Municipal Planning and Performance Management Regulations, 2001, Section 11. Systems Act, the municipality must, within one month of its IDP having been amended, review those KPI s that will be affected by such amendment. Before the KPI s are set, municipalities are expected to identify the KPA s that require performance measuring and improvement. Once this is done, a municipality will develop KPI s and performance targets with regard to each KPA and development objective. A KPI has to be consistent with the following principles: Measurability; Relevance; Simplicity; and precision. In terms of the Municipal Planning and Performance Management Regulations, 2001, section 10, all municipalities must report on the following general national KPI s by the end of the financial year: ;3 % >;A.? The percentage of households with access to basic level of water, sanitation, electricity and solid waste removal; The percentage of households earning less than R1 100 per month with access to free basic services; The percentage of a municipality s capital budget actually spent on capital projects identified for a particular financial year in terms of the municipality s integrated development plan; The number of jobs created through municipality s local economic development initiatives including capital projects; The number of people from employment equity target groups employed in the three highest levels of management in compliance with a municipality s approved employment equity plan; The percentage of a municipality s budget actually spent on implementing its workplace skills plan; and Financial viability as expressed by the following ratios: Debt Coverage = B C B - Total operating revenue received D C - Operating grants D - Debt service payments (i.e. interest + redemption) due within the financial year Outstanding service debtors to revenue = B B - Total D outstanding service debtors C - Annual revenue actually Cost coverage = B + C B - All available cash at a particular D time C - Investments D - Monthly fixed operating expenditure Municipal Planning and Performance Management Regulations, 2001, Section 11.

80 77 >-? # + #. Municipalities will also be Municipal Planning and Performance expected to set performance Management Regulations, 2001, Section 12. targets for each identified KPI, as part of the performance measurement process. Performance targets should be SMART (Specific, Measurable, Attainable, Realistic and Time related). Guard against setting too many performance targets. Real efforts should be made to ensure that performance targets are based on what the community considers important rather than being managerially orientated. Setting performance targets should be a realistic exercise local performance targets must therefore be equal to or higher than national standards. The municipality sets out to achieve these performance targets within a given financial year, and its performance can then be measured according to whether targets for each indicator were met consistently. Setting performance targets is particularly useful for internal, contractedout and privatised services, as it promises the public a defined quality of service. In order to make the entire process of performance management more objective, it may be useful to go through a checklist of questions. When setting performance targets for KPI s for example, number of households with electricity connections, the checklist could read as follows: How many households are connected at the moment? How many new households have been connected every year since 1995? What trends are occurring at the moment which will impact on this: What is the relationship between Eskom and municipalities? What is the share of national revenue that the municipality will receive in the next fiscal year and how much of this will be used to subsidise electricity services? What is our municipality s expected electricity budget (income and expenditure) for the next fiscal year? Are there enough contractors who can assist in meeting the performance targets? What do customers expect (what do they say at meetings; what do surveys reveal)? What does our independent research indicates in terms of what is achievable (i.e. capacity to deliver) over the next five years? What is being accomplished elsewhere by similar municipalities? Answering these questions will lead to the setting of realistic performance targets which are attainable within the resources of the municipality.

81 78 Examples of municipal KPI s and performance targets: Key Performance Indicator Number of households to receive electricity connections Number of jobs created through Council-led initiatives Increased participation by community groups in Council activities Performance Target households to receive connections by June % of the above figures must be in informal settlements 200 jobs created in year 1 50 additional jobs created in year 2 Attendance of 60% of listed community groups at budget meetings in 2002 Attendance of 80% of listed community groups at budget meetings in 2003 Ward meetings held at least once a month by 2001 Where municipal managers and senior Municipal Systems Act, 2000, Section 57. managers are appointed in terms of five (5) year performance based contracts, the individual KPI s and performance targets will be determined and based on the municipal KPI s and performance targets. >,? $!# Benchmarking entails the measurement and improvement of the products, services and practices of the municipality s toughest competitors or those organisations regarded as leaders in a particular practice or business area. The goal of benchmarking is to reinvent operations to achieve significantly improved performance, and is best accomplished as part of a restructuring or re-engineering process. If a municipality wants to be the best-of-the-best in service delivery, benchmarking can assist. Example: If the leaders in service delivery solve a billing complaint within twenty four hours, that will be the benchmark to improve on. >? + # " Performance monitoring and evaluation are processes aimed at assessing the performance of municipalities, municipal staff and external contractors. All municipalities are obliged to monitor and Municipal Planning and Performance evaluate their own performance against their Management Regulations, 2001, Section 13. set KPI s and performance targets. Such performance management system will allow municipalities to: Ensure the implementation of their plans and programmes; Measure their development impact; Ensure the efficient utilisation of resources; and assess their performance and that of departments, divisions, partners or agents. Monitoring and evaluating performance are interlinked activities. Monitoring provides the information base in terms of which a more detailed evaluation can take place. This process links up with section 3, Monitoring, Evaluation and Reviewing on page 128.

82 79 >&? 0 Performance monitoring and evaluation Municipal Systems Act, 2000, Section 42. is not an exercise which should be done behind closed doors until the results are finalised and made public (i.e. during the performance reporting phase). Public pressure for improved performance is an important part of the overall performance management system. Public participation may also enhance the judgements which will be made during this process as it involves the users of services themselves. Such a process involves public input into selecting and analysing the information that will be used during the monitoring and evaluation phase. >*? + # Performance monitoring is an ongoing process to determine whether performance targets are being met and broader development objectives are being achieved it involves the measurement of particular KPI s and tracking performance in terms of these KPI s over time. Performance measurement has to be done very carefully. It is important to ensure that the right information is obtained, and that this information is not manipulated to produce misleading results. This means that municipalities must ensure the integrity of measurement mechanisms. >-? + " Performance evaluation is a deeper, more detailed process of analysis. It occurs during key points in a process for example, on a quarterly and annual basis. The evaluation process does not just look at whether a municipality is performing adequately it also analyses why there is underperformance or what the factors were that allowed good performance in a particular area. Municipalities have to make special arrangements for evaluating performance, e.g. setting up a specific task team or setting aside time in council meetings on a regular basis. The information gathered through monitoring and evaluation will be utilised by: The public - to hold a municipality accountable for promised performance targets. Councillors - to enable them to measure the effectiveness of the administration. Municipalities - to adjust strategies, plans and projects if necessary.

83 80 >? + # Performance auditing is a key element of the monitoring and evaluation process. This involves verifying that the measurement mechanisms are accurate and that proper procedures are followed to evaluate and improve performance. Municipalities will be required to submit their performance results to be audited by the municipality s external auditor on an annual basis. In addition to verifying the results of the measurement exercise, it will also verify the accuracy of the measurement methods. The Auditor-General as well as the provincial public accounts committees will play an important role in this process. Municipal Planning and Performance Management Regulations, 2001, Section 14. According to the Systems Act, section 45, the results of the performance measurements must be audited as part of the municipality s internal auditing process and annually by the Auditor-General. Therefore, municipalities are expected to establish frameworks and structures to evaluate the effectiveness of the municipality s internal performance measurement control systems and make recommendations. >"? + # The Systems Act stipulates that a municipality must prepare an annual report that reflects: Municipal Systems Act, 2000, Sections 46, 47 and 48. A performance report which deals with: The performance of the municipality during the financial year and a comparison between performance targets and performance in the previous financial year; The development and service delivery priorities and the performance targets set by the municipality for the following financial year; and measures that were or are to be implemented to improve performance. Financial statements for the financial year; An audit report of the financial statements and the report of the results of the performance measures; and any other reporting requirements stipulated in other applicable legislation. This type of report is based on the Batho Pele notion of annual reports to citizens. Performance reports must explain past performance (including deviations from performance targets) and highlight future plans. The annual report should also be linked to the annual IDP review this report will thus combine current municipal reporting initiatives into one report that focuses on the municipality s performance in its totality.

84 81 Annual performance reports will at least contain the following information: A summary of KPA s and development objectives; Performance targets set for each KPA for the previous year; Measurement of performance in terms of the KPI s for the previous year; An evaluation of performance; A review of delivery mechanisms in instances of under-performance, and corrective measures to improve performance; Any amendments to development priorities and strategies contained in the IDP; KPI s and performance targets for the next financial year; Audited financial statements of the municipality for the previous financial year; A statement by the external auditors regarding the integrity of the municipality s performance measurement mechanisms; and a review of the municipality s performance by the external auditors. The annual report must be presented to the community for discussion, and the MEC and Auditor-General must be notified about the meeting and may either attend or send representatives to attend on their behalf. After consultation with the community the municipality must adopt the report and, within 14 days, make copies available to the public and any other interested parties. Copies should also be submitted to the MEC for local government, the Auditor- General and any other institution as may be prescribed by legislation. In terms of section 47 of the Systems Act, the MEC for local government must also compile a consolidated report on the performance of municipalities, and submit such to the provincial legislatures on an annual basis. A copy of the report must be submitted to the National Council of Provinces (NCOP). Finally, in terms of section 48 of the Systems Act, the minister must compile an annual report on the performance of local government in terms of the general KPI s. A copy of the report must be submitted to parliament and the MEC s for local government, and published in the Gazette. The above approach is in line with the reporting processes and requirements, which generally exist throughout most developed countries. All users of the information must have access to the reports. >"? " The Constitution allows provinces to intervene in the affairs of municipalities in the event of non-performance. This is to ensure that citizens receive essential services. A performance management framework will ensure that such interventions are based on accurate diagnosis and undertaken on an objective basis. This is important in terms of protecting local government s constitutional place as a sphere of government in its own right.

85 82 Depending on the degree and nature of the lack of performance, provinces may: Suggest capacity building initiatives to alleviate the problem; Issue specific instructions to improve performance (e.g. budget restructuring); Recommend a process of competitive tendering in the case of service delivery problems; Appoint a person/team to assist with specific functions for a defined period of time; Transfer the function to another body for a specified period of time; and take over the function completely. The information which provinces will base their actions on, therefore has to be both comprehensive and accurate. Such information will flow from the annual performance reports provided by municipalities. In addition, provinces may also appoint management evaluation teams to investigate a particular issue (or function) within municipalities, if there is cause for concern.

86 An example of Performance Measurement in a municipality (Municipal Infrastructure Department): KEY PERFORMANCE AREA DEVELOPMENT OBJECTIVES KEY PERFORMANCE INDICATORS (KPIs) PERFORMANCE TARGETS To provide reliable and affordable electricity to each household Number of households to receive electricity connections Number of electricity failures Households to receive connections by 30 June Households in informal settlements to receive connections by 30 June 2006 Reduce the number of failures to 4 per annum by 30 June 2006 Number of billing complaints received Reduce number of complaints to 100 per month by 30 June 2003 To solve a complaint within 24 hours Infrastructure and Services To provide clean drinking water to each household NOTE: When local KPI s are set, it must at least cover the prescribed national KPI s. The municipal manager and senior managers KPI s and performance targets will be based on the municipality s KPI s and performance targets Number of households to receive water connections The percentage of households without access to at least 50 litres of water per capita per day within 200m of their houses Households to receive water connections by 30 June 2006 Reduce the percentage of households without access to adequate water from 30% to 20% by 30 June 2006 Reduce thereafter at a rate of 10% per annum 83

87 84,'- %" 3 $.... >? It is essential that an organisation develops its strategies at operational level to achieve its formulated objectives. A business plan at operational level will contribute to the achievement of the municipality s vision and mission. The success of a selected overall strategy in terms of KPA s, development objectives, KPI s and performance targets, depends on how effectively the operational activities are managed at departmental and divisional level. Sectoral operational business planning can be defined as the detailed deployment of resources to achieve the IDP. It includes action plans and are structured, interconnected, calculated and evaluated actions with fixed target dates. It can be formulated in annual terms for a period of five (5) years. Business planning is therefore a process which determines all activities regarding the what, where, by whom and when. It is furthermore directed by clearly defined KPI s and performance targets. The <( $ The Sectoral Operational Business Plans should be drafted by Heads of Sector Departments. Business Plans will be presented to the Steering Committee and to the IDP Representative Forum for final approval. individual KPI s and performance targets are also formulated and determined during this process. See chapter 4, section 1, of this guide for more details (page 117). At this level the following business planning process should be followed by each sector (department): % 3 $ Formulate a Sectoral Mission SWOT Analysis Determine Sectoral KPA s and Development Objectives Annual Reporting Monitor and Review Annually Determine Sectoral KPI s and Performance Targets Implementation Review the Sectoral Organisational Structure Formulate detailed Action Plans

88 85 >0? 0 +. The following is the proposed table of contents for a five year sectoral operational business plan: Introduction; Organogram; Core functions; Sectoral mission; SWOT analysis; Sectoral KPA s and development objectives; Sectoral KPI s and performance targets; Action plan; and Projects (investment capital and programmes) >? The introduction will provide a brief background and other relevant details of the sector (department/division). It will also include and re-affirm the municipality s vision, mission, values and KPA s. >? ## The sectoral (departmental) organogram should be included. An example of an organogram: % Strategic Executive Executive Director Electricity Executive Director Water and Sanitation Executive Director Waste Management

89 86 >? %. The following is an example of core functions relevant to the sectoral department municipal infrastructure: %) % Planning and Design: Network Analysis; Demand Management; Project Management; Research and Development; Policies, Standards and Procedures. Electricity: Master Planning; Distribution Management; Maintenance; and Customer Care. Water and Sanitation: Master Planning; Distribution and Loss Management; Maintenance; Construction; and Customer Care. Waste Management: Waste Collection; Street Cleaning; Transfer Site Management; Disposal Site Management; and Customer Care. >"?.. The sectoral mission must be aligned with the municipal mission. The following can serve as an example of a sectoral mission: The Department Municipal Infrastructure is committed to improve the quality of life of its community by: Providing and maintaining affordable Municipal Infrastructure specifically in terms of: Electricity; Water Sanitation; and Waste management. The efficient and effective utilisation of all available resources; and effective stakeholder and community participation. NOTE: Refer to Mission on page 62 for the municipality s mission.

90 87 >"? <.. SWOT is an acronym for a company s strengths, weaknesses, opportunities and threats. A SWOT analysis consists of sizing up a department s internal strengths and weaknesses and its external opportunities and threats. It is an easy-to-use tool to get a quick overview of a department s strategic situation. SWOT analysis is based on the principle that strategy must produce a strong link between a department s internal capability (its strengths and weaknesses) and its external situation (reflected in part by its opportunities and threats). < 3 ENVIRONMENT DEPARTMENT Strengths Weaknesses Opportunities Threats >&? +# #. <!... A strength is something a department is good at doing or a characteristic that gives it an important capability. A strength can be a skill, a competence, a particular organisational resource or competitive asset, or something the department has done that puts it in a position of market advantage (like having a better product, stronger name recognition, superior technology, or better customer service). A weakness is something a department lacks or does poorly (in comparison to others) or a condition that puts it at a disadvantage.

91 88 An example of identified strengths and weaknesses: STRENGTHS Competent top management Effective organisational Structure Adequate equipment Open communication Channels Established systems and procedures Geographical information system (GIS) Loyal personnel core Strategic direction Delegation of powers and functions Access to economies of scale Performance management WEAKNESSES Lack of mutual trust Lack of accountability Absence of reward system Bureaucratic culture Unrealistic time frames Lack of skills in some areas Customer image Ineffective decision-making system Water wastage Electricity failures Asset management Productivity Internal communication Uneven workload Insufficient funds Once a department s internal strengths and weaknesses are identified, the two lists have to be carefully evaluated. Some strengths are more important than others because they are predominant in determining performance, competing successfully and determining a powerful strategy. Likewise, some weaknesses can prove fatal, while others don t matter much or can be easily remedied. From a strategy-making perspective, a company s strengths are significant because they can be the corner stones of strategy and the basis on which to build a competitive advantage. Strategy should be based on a department s strengths. >*? +#.. No department or business operates in a vacuum. The external environment should continuously be evaluated in order to identify opportunities and threats and to plan accordingly. External opportunities and threats are important because a strategy aims at capturing attractive opportunities and defending the business (department) against threats.

92 89 An example of identified opportunities and threats: OPPORTUNITIES Job creation Enabling legislation Community and stakeholder needs Stable local industries and business Growth and development potential Geographical location Buying power potential THREATS Inadequate housing Large numbers of informal settlements Crime HIV/Aids Air pollution Unemployment Non-payment for services Unfunded mandates Natural disasters >"? ;A. " 06 ". Each sectoral department should take ownership of the identified municipal KPA s and development objectives. The process that is to be followed is explained in paragraph 3.4, Link KPA s and Development Objectives to Sectoral Departments (See page 67). >"? ;A. + #. The formulation of KPI s and performance targets, is explained in detail in paragraph 4.2, Performance Management and specifically in paragraph (g)(i), Performance Measurement. The example is on page 83. >"? The action plan should specifically address the what, where, when, by whom and financial implications in terms of each KPI and performance target. (See the Action Plan example on page 90). Flowing from the action planning process, specific capital investment projects will be identified. Project proposals (see page 91) are prepared and submitted to the IDP steering committee and the IDP representative forum for approval. The IDP representative forum will adjudicate each project in accordance with a prioritisation model (See Annexure D ). Specific plans and programmes that should adequately be addressed in integrated sectoral action plans, are the following: Local economic development (LED) and job creation; Disaster management; Poverty alleviation; Gender equity; International Relations Plan; HIV/Aids prevention; Environmental management; Maintenance management; Crime prevention; Spatial development (See page 57); 5 year financial plan; and 5 year capital investment programme.

93 E) DEPARTMENT: Municipal Infrastructure KEY PERFORMANCE AREA ACTION PLAN PERIOD DIVISION: Electricity 1 July 2001 June 2006 Infrastructure and Services MANAGER: B Mahlangu (5 Years) Serial No Development Objective 1. To provide reliable and affordable electricity to each household Key Performance Indicators (KPI s) Performance Targets Number of households Households to to receive receive connections by electricity connections 30 June 2006 Actions Jun 2001 Jun 2002 Target Date Jun 2003 Jun 2004 Jun 2005 Jun 2006 Location (Where) Project Design Tembisa Wards: 7, 12, 14, 18 and 22 Prepare Project Proposals Aug 2001 and Approval of Project Project Commences: Nov Connections Completed Connections Completed Connections Completed Connections Completed Connections Completed Reduce the number of failures to 4 per annum by 30 June 2006 Project Proposal and Approval Research the problem Aug 2001 Project Design Sep Project Commences: Current number of failures = 24 per annum 2001 Oct 2001 Nov 2001 Ward 7 Wards 7, 12, 14, 18 and 22 Wards Ward 14 Reduce to: 20 p.a. Reduce to: 16 p.a. Reduce to: 12 p.a. Reduce to: 8 p.a. Reduce to: 4 p.a. Wards Wards Industrial Business Area/ All Residential Areas Responsibility R. Khumalo J. Kemp M. Mkize P. Naudé J. du Toit J. Kemp M. Mkize 90

94 D ) D ( SECTORAL DEPARTMENT: Municipal Infrastructure DIVISION: Electricity KEY PERFORMANCE AREA : Infrastructure and Services DEVELOPMENT OBJECTIVE : To provide reliable and affordable electricity to each household PROJECT : Electricity Connections PROJECT MANAGER : J. Kemp Serial Key Performance Indicator(s) Performance Targets Actions Location (where) Responsibility Target No Date 1. Number of households to Households to 500 Connections Tembisa Ward 7 L. Barnard 30 Jun receive electricity connections receive connections by June Connections Tembisa Ward 7 L. Barnard 30 Jun Connections Tembisa Ward S. Maphumulo 30 Jun Connections Tembisa Ward S. Maphumulo 30 Jun Connections Tembisa Ward S. Maphumulo 30 Jun Budget Implication R 5m R12m R11m R11m R11m R50m 91

95 92 >B? 6 # >&? Once strategies in terms of KPA s and development objectives have been developed, a series of projects are identified to accomplish the vision. A project refers to any combined set of related actions or activities that can be executed and managed as part of a single initiative. A project will comprise of: Development objective(s); An implementation programme (KPI s, performance targets and action plans); A project budget; and a human resources plan. Not all projects are physical in nature or capital investment related. A project may also refer to a set of actions or activities directed at: Preparing a plan; Undertaking technical investigations; Developing policy; Designing infrastructure and facilities; Developing a process or system; and/or undertaking a capacity-building programme. >*? 6. In order to identify the strategical important projects, it should be prioritised by utilising a prioritisation model (see Annexure D ). An assessment of the probability of achieving the desired results or performance targets of the project, can also be conducted. The prioritisation process aims to ensure that the available resources are optimally utilised. >-? 6 # Systematic project planning aims to address the identification of a project team (responsibility), time frames, KPI s, performance targets, action plan, and estimated budget. It is important to ensure that all these aspects of the project are synchronised. >,? 6 # +. On any project the importance of quick and accurate planning cannot be over emphasised and close control is essential to the successful completion of the project. An integrated project management and information system forms an integral part of the development or flow of the project and assists the project manager to a great extent in his/her endeavours. The management information system is best designed by doing an input/output analysis. The yardstick for this conversion is performance targets, quality, cost and functional specifications.

96 The figure below indicates a physical input/output system where materials, equipment, components, consumables and labour are converted by a construction process into an output which is a completed project. 93 D 3 INPUTS Materials Equipment Components Consumables Labour Construction Process OUTPUTS Completed Projects Performance Measuring Yardsticks Performance Targets Quality (Degree of conformance to specifications) Cost (Budget saving or overspend) Functional (Customer satisfaction) >7? 6. The composition of project teams is subject to the nature and purpose of the project. Multi-disciplinary (inter-sectoral) projects need multi-disciplinary project teams, whilst in the case of sectoral (departmental) projects, it is sufficient to have sectoral teams. The project teams should include representatives of such agencies which are likely to be involved in the implementation of the project. The project teams should be given clear terms of reference and a project manager should be appointed. The project team should, during the planning stage, consult the community and other stakeholders such as national and provincial sectoral representatives who are not members of the project team. Examples of project task teams: Multi-disciplinary projects: Prevention of HIV/Aids: A multi-disciplinary project team is required. Sectoral project: Construction of a tar road: A sectoral project team is sufficient.

97 94 An example of a Capital Budgeting System: Initial rejection of unacceptable capital investment ideas Identification and Generation of Capital Investment Ideas Project Evaluation PHASE 1 PHASE 2 Rejection of project No Is project compatible with objectives and strategies of the municipality? STEP 1 Yes Rejection of project No Is project financially acceptable? STEP 2 Yes Temporary rejection of project No Is project financially acceptable on the basis of inclusion in next year s capital budget? STEP 3 Yes Project Implementation PHASE 3 Post Implementation Audit and Control PHASE 4 NOTE: See Annexure D for a proposed Capital Prioritisation Model

98 7 95 (,) PHASE 4: INTEGRATION 1. INTEGRATION OF PROCESSES 2. INSTITUTIONAL RESTRUCTURING 3. INTEGRATED COMMUNICATION PLAN 7'& # +... During this phase the IDP steering committee and IDP representative forum should ensure that total integration has been achieved in terms of the following: That all identified projects and sectoral operational business plans comply with the municipality s strategies (KPA s and development objectives), resource framework (finance, human resources, equipment, institutional, etc.) and legislation. That the identified sectoral operational business plans and projects are aligned with provincial and national sector departments plans and programmes to secure funded mandates from national and provincial departments. That in the case of multi-disciplinary projects such as poverty alleviation, gender equity, HIV/Aids prevention, environmental management, disaster management and local economic development, all the relevant stakeholders are involved. That the IDP is integrated and reflected in the following: 5 year financial plan; 5 year capital investment programme; Institutional restructuring; and integrated communication plan.

99 96 7'*.. # >.+? >? The IDP forms the basis of institutional restructuring and will impact directly on the type of structure that should be developed to realise the vision. Human Municipal Systems Act, 2000, Sections resource matters and development are being dealt with in chapter 7 of the Systems Act. However, structure follows strategy and unless a municipality knows what it wants to achieve it cannot determine and finalise the institutional structure. The municipality s mission, KPA s development objectives and KPI s will largely indicate what type of structure is required. >0? # The following principles must be upheld during the restructuring of a municipality: Clear development objectives of the institution must be set before embarking on the restructuring exercise; Functions should be grouped and assigned in terms of their homogeneity and logical cohesiveness; Responsibilities should not exceed the span of control of the specific management level. Norms to determine span of control differ for different functional areas and includes complexity, diversity and nature of the work (management or routine); The number of organisational levels should be kept to the minimum and the chain of command as short as possible; Irrelevant organisational relics from previous eras must be abolished; Delegate sufficient and appropriate authority to the lowest possible level; Municipal Systems Act, Organisation of administration 51. A municipality must within its administrative and financial capacity establish and organise its administration in a manner that would enable the municipality to (a) be responsive to the needs of the local community; (b) facilitate a culture of public service and accountability amongst its staff; (c) be performance orientated and focussed on the objects of local government set out in section 152 of the Constitution and its developmental duties as required by section 153 of the Constitution; (d) ensure that its political structures, political office bearers and managers and other staff members align their roles and responsibilities with the priorities and objectives set out in the municipality s integrated development plan; (e) establish clear relationships, and facilitate cooperation, co-ordination and communication, between (i) its political structures and political office bearers and its administration; (ii) its political structures, political office bearers and administration and the local community; (f) organise its political structures, political office bearers and administration in a flexible way in order to respond to changing priorities and circumstances; (g) perform its functions (i) through operationally effective and appropriate administrative units and mechanisms, including departments and other functional or business units; and (ii) when necessary, on a decentralised basis; (h) assign clear responsibilities for the management and co-ordination of these administrative units and mechanisms; (i) hold the municipal manager accountable for the overall performance of the administration; (j) maximise efficiency of communication and decisionmaking within the administration; (k) delegate responsibility to the most effective level within (l) the administration; involve staff in management decisions as far as is practicable; and (m) provide an equitable, fair, open and non-discriminatory working environment.

100 97 Put feedback and monitoring mechanisms in place; Unity of command must be maintained. A subordinate should have only one superior to whom he/she is directly responsible; and constraints, resources and practical realities will influence the organisational structure. Designing an organisational structure is more than drawing organograms. The purpose of the structure is to divide work among employees in a municipality and to co-ordinate and integrate their separate activities so that it is directed towards achieving the objectives of the organisation. A well-designed institutional structure does not in itself guarantee good performance, but a poorly designed structure makes good performance very difficult. Procedures, systems, equipment, skills and effective delegation, are critical factors contributing towards an efficient organisation and must be considered during the restructuring process. The relationship between different departments within the municipality, should be clearly defined in terms of line functional and/or staff (advisory) functional. >?. ".:F:".. Functional responsibilities are best performed at the level closest to the customer. Decentralisation means placing responsibility for performance and decision-making authority as close as possible to the point where the actual work is performed. The benefits of a decentralised organisation are: Quick decision-making; Reduced red tape; Compressed communication channels; Minimum co-ordination problems; and enhanced opportunities for human resources development. The criteria to be considered in debating the centralisation vis-à-vis decentralisation issue, are the following: The size of the organisation and the spatial spread of its customers; Decentralised structures seem to be suitable for multi-purpose organisations; Decentralisation enhances flexibility and rapid decision-making; Centralisation and decentralisation must be balanced. Although decentralisation may seem essential for efficient service delivery, public accountability favours centralisation; Strategic policy-making and staff functions should be centralised; Decision-making responsibilities must continuously be evaluated; regardless of the degree of decentralisation or centralisation, suitable organisational arrangements are a prerequisite for organisational performance and customer satisfaction.

101 98 >?. #.. In order to realise the vision, a municipality probably needs to develop a new administrative and political structure as well as systems. The key processes are the following: Functional analysis; Development of administrative structures and business processes; and development of governance structures. >? %.. A functional analysis forms the first step of the restructuring process and can be summarised as follows: List all functions, which are performed by the municipality; Identify functions that can be scaled down or phased out. The IDP will be an important guideline in this regard; Identify functions that should be performed additionally or differently. Important sources of input in this regard will be legislation, the IDP, KPA s, business plans, performance management and community needs; and functions are then analysed and grouped generically and a functional structure is developed that mirrors the priorities of the IDP. Other aspects of importance could be the centralisation vis-à-vis decentralisation, and an analysis regarding outsourcing vis-à-vis internal management of functions. >? " +.". $ Step 1: Determine the Principles that will Guide the Designing Process Once a municipality has determined where it is heading, it then has to determine what type of organisational structure is necessary to ensure success. The first step in this process is the development of a set of principles to guide the designing process. In order to develop these principles, a number of key designing decisions based on the municipality s vision will have to be made. Key designing decisions would include the extent to which the organisation should: Be client/community-driven or internally-driven; Be centralised or decentralised; Be integrated or highly separated; Have competitive or collaborative internal relationships; Empower or control; and have a team or an individual focus. Step 2: Assumptions It is often the case that designing principles are based on a number of assumptions. The validity of these assumptions must be tested to ensure that designing principles are not based on false premises.

102 99 Step 3: Determine Designing Options This involves the following major tasks: Designing the corporate centre: Municipal Systems Act, 2000, Sections 51 and 66. What functions should reside at the corporate centre and how should the different activities and tasks be grouped? What kind of decisions should be taken at the corporate centre and what kind at operational level? Designing Operational Units How different services/functions should be grouped and what type of organisational structure is needed, will primarily be determined by the service delivery strategy, the KPA s and development objectives. This process should result in the development of a number of designing options consisting of organograms depicting the different business units at the corporate centre and the major operational units, as well as the titles of each unit head. Step 4: Test the Designing Options It is important that the designing options are tested against the original designing principles for best-practice. There should also be a consultation process with key internal and external stakeholders. Step 5: Choose Preferred Design The choice of an organisational design will be determined by the outcome of the testing process. The preferred designing option should also be integrated with proposals for governance structures and service delivery models. The broad financial implications of different options should also be taken into consideration. Step 6: Design Journey Map Design jobs for each position in top management structure; Appoint people in top management positions; Conduct a gap analysis: Whilst an organisational review is fairly broad, a gap analysis involves doing an in-depth audit of existing capabilities based on the requirements of the new organisational design. Such an analysis should highlight the gap between the current state and desired state. It is important to note that the gap analysis do not have to be completed before implementing the new organisational structure. Both processes should be phased and run parallel.

103 100 Proceed with the detailed design of sub-units: How should different activities and tasks be grouped? What should the reporting relationships, spans of control and delegations be? How should each position be structured? etc. Step 7: Staffing After the organisational structure has been finalised, the positions will have to be staffed. Two staffing sources, namely internal and external, are available. For the internal personnel, which are already employed, placement criteria in terms of the Labour Relations Act and equity principles will have to be developed. External candidates will be recruited by means of the municipality s approved recruitment criteria. Step 8: Union Consultation Chapter six of the Labour Relations Act states the matters for union consultation, which includes, restructuring of the workplace and changes in the organisation of work. According to the department of labour in their manual Know your Labour Relations Act (1997:33), the workplace forum may present alternative proposals which the employer must consider. If the employer rejects these proposals, reasons must be given for the rejection. The employer may then proceed and implement the proposed changes. Legislation of importance that impacts on a restructuring process are: Labour Relations Act 66 of 1995; Basic Conditions of Employment Act 75 of 1998; Employment Equity Act 55 of 1998; Skills Development Act 97 of 1998; Municipal Structures Act 117 of 1998 Municipal Systems Act 32 of 2000; and Municipal Structures Amendment Act 33 of While the employer and workplace forum must endeavour to reach consensus on the above-mentioned matters, the consultation process is not a negotiation process, and the employer may unilaterally make decisions after genuine consultation with the workplace forum. >? " + ". >?. Part of the organisation of the municipality is the committee system that the council may wish to establish. A number of matters in this regard must be considered. (See Annexure H for proposed by-law) The nature, volume and complexity of affairs that a municipal council must consider and resolve place extraordinary demands on a council. A functional committee system is the ideal way for a municipal council to: Ensure that all or at least most of the councillors of a municipality are involved in decision-making; Afford councillors an opportunity to specialise and align their interests with a subject matter that they feel comfortable with;

104 101 Reduce the burden on the council; Expedite decision-making; Ensure that matters are properly considered; and enhance political supervision over and accountability of the administration. The prerequisite is however a well designed system. Designing a committee system is a dynamic process. Once the council has established committees it must regularly review the functioning of and need for those committees. A council cannot allow its committee system to stagnate especially during the period of transformation and the implementation of a new legislative framework for local government. As the need for a committee lapses, the council must abolish the committee or amend its terms of reference. It is however necessary to first consider the provisions of the Constitution of the Republic of South Africa with regard to committees. The Constitution establishes important principles regarding the establishment of committees. Section 160(1) of the Constitution states that a municipal council may elect an executive and other committees, subject to national legislation. The power of a municipal council to establish committees is therefore not an unrestricted power. Section 160 of the Constitution elaborates further on this principle by stating that national legislation may provide criteria for determining whether a municipal council may elect any committees and for determining the size of such committees. A municipal council is further empowered to make by-laws to prescribe rules and orders for the establishment, composition, powers and functions of its committees. The councillors of a municipality is further entitled to participate in the activities of committees in a manner that allows parties and interests reflected in the council to be fairly represented therein, consistent with democracy and as may be regulated by national legislation. The Structures Act contains a number of criteria for the establishment of committees. Those criteria are as follows: Municipal Structures Act, 1998, Section 33. The municipality is of a type that is empowered in terms of the Act to establish a committee of the desired kind; The establishment of the committee is necessary, taking into account: The extent of the functions and powers of the municipality; The need for the delegation of those functions and powers in order to ensure efficiency and effectiveness in their performance; and the financial and administrative resources of the municipality available to support the proposed committee. The Structures Act contains provisions relating to the establishment of committees: Municipal Structures Act, 1998, Sections 79 and 80. Firstly, a council may only establish committees for the effective and efficient performance of any of the municipality s powers or functions.

105 102 Secondly, the council must appoint the members of the committee, subject to the provisions of the Constitution. Thirdly, when the council establishes any committee, the council: Must determine the functions of the committee; May delegate any of the council s powers and duties to the committee, except the reserved powers and functions; May authorise the committee to co-opt persons who are not councillors as advisory members of the committee and determine limitations in this regard; May remove a member of a committee at any time; and may determine the committee s procedures. The White Paper on Local Government sets out three basic roles for municipal committees, namely management and supervision of a municipal function, management of a part of the municipal area or policy-formulation. A committee responsible for management and supervision of a municipal function is assigned distinct areas of competence and is usually aligned to departments or combinations of departments within the administration. The danger in this type of organisation is that it may lead to fragmented decisionmaking. Committees that manage and supervise a part of the municipal area (area-committees) can lead to the establishment of decentralised administrative units within a large municipal area, it can assist in coordinating service delivery and may have delegated and/or advisory powers. Policy committees overlap departmental boundaries and may be useful to assist a council in providing dedicated attention to critical strategic issues. In a municipality, one may of course find a combination of these roles in different committees of the council. In essence local needs and priorities would determine the committee system adopted by a council. >? One of the objects of local government in terms of the Constitution, section 152(1)(e) and the Systems Act, chapter 4, is to encourage the involvement of communities and community organisations in local government. A municipality must develop a culture of municipal governance that complements formal representative government with a system of participatory governance. This aspect, and specifically the ward committees, is in detail discussed in section 4: Public Participation, page 12 of this guide.

106 103 >+? # + 1. %. Delegation is the actual process of assigning job activities and corresponding authority to specific individuals within the municipality. In all cases the manager must ensure that the subordinate has a clear understanding of what these duties entail. Whenever possible, care should be taken to state the activities in operational terms so that a subordinate knows exactly what Municipal Systems Act, 2000, action must be taken to perform the assigned duties. Sections 60, 61, 62, 63, 64 and The second step of the delegation process involves 65. granting appropriate authority to the subordinate. The subordinate must be given the right and power within the organisation to accomplish the duties assigned. The last step of the delegation process involves creating the obligation for the subordinate to perform the duties assigned. The subordinate must be aware of the responsibility to complete the duties assigned and his/her acceptance of that responsibility. The delegation of powers and functions is an important device that defines and clarifies the respective roles of the structures and individuals in the municipality. It is also a devise that streamlines decision-making and thus expediting it. >#? (. " The Systems Act in accordance with the Employment Equity Act, 1998, provides for human resource development and prescribes that a Municipal Systems Act, 2000, Section 67. municipality must develop and adopt appropriate systems and procedures to ensure fair, efficient, effective and transparent personnel administration, including: The recruitment, selection and appointment of persons as staff members; Service conditions of staff; The supervision and management of staff; The monitoring, measuring and evaluating of performance of staff; The promotion and demotion of staff; The transfer of staff; Grievance procedures; Disciplinary procedures; The investigation of allegations of misconduct and complaints against staff; and the dismissal and retrenchment of staff. >?... The following aspects should be addressed as part of the restructuring process and should be investigated and managed parallel with the process discussed above: The revision of by-laws, policies and procedures; Office accommodation; Job evaluation; Standardisation of job designations; Union consultation; Political approval; and performance management.

107 104 >? #..+.. The following are some of the key challenges in transforming municipalities: The transformation must be managed with a view to ensure that the municipality s capacity is improved and that it is made sustainable for its task ahead; Managers must lead the transformation process. This requires that they must articulate a clear vision of what the municipality must become and instil in people a commitment to that vision; Transformation is more than designing a new structure. It also requires changing the organisational culture. Culture change programmes must be designed and implemented to change the way employees perceive customer service. Planning organisational culture change is easy, achieving it is however difficult. It is easier when the need for change is understood. Commitment from lower levels will be low unless management demonstrates a commitment to a different set of values than those which currently regulates behaviour in the municipality and displays appropriate conduct and trust; There is a great need for information in a time of uncertainty. Even when information is provided as soon as it is available, the grapevine (which is usually only half-true) might have preceded it. Communicate frequently, objectively and truthfully; Set clear targets, time frames and establish accountability; and focus on specific issues for a specific time frame and commit the organisation as a whole to it. Set priorities, targets and due dates. 7'- # >? There is no single issue more important to ensure meaningful progress towards achieving the municipality s vision, than to learn and practise the art of effective communication. Research suggests that effective communication and organisational harmony relates directly to higher productivity. Communication with municipality stakeholders (employees and other interest groups) is a crucial element of effective integrated development planning. The ultimate aim of communication is to create awareness among employees and external stakeholders and to ensure their support for the transformation process. <( $ The plan must be drafted by the Communication Department. Approved by: IDP Steering Committee IDP Representative Forum Council Without the correct and accurate information, people would take ill-informed decisions affecting the quality of the transformational output. Internal and external communication are strategies in its own right. The purpose of this section is to illustrate how to design internal and external communication strategies.

108 105 >0? " " >? + 0+ # The more systematically the problem or idea to be communicated is analysed, the clearer the message become. This is the first step towards effective communication. >? B. + It is important to determine exactly what the communicator intends to accomplish with the message before it is communicated. Is it to obtain information, initiate action or to change attitude? Identify the most important communication goal and do not try to cover too much with each communication. The sharper the focus of the message, the greater its chances of success. >?.. ( # Meaning and intent are conveyed by more than words alone. Many other factors influence the overall impact of a message, and managers must be sensitive to the total setting in which they communicate. Consider specifically the timing and the physical setting. >"?.9 1 #. It is often desirable or necessary to seek the participation of others in planning a communication or developing the facts on which to base the communication. Such consultation often lends additional insight and objectivity to your message. Moreover, those who have helped to plan the communication will give it their active support. >"? %1: The best effort of communication may be wasted and the communicator may never know whether he/she succeeded. It is important to follow-up to determine how well the message was received. This can be done by asking questions and by encouraging the receiver to express his/her reactions. It is essential that every important communication is followed-up to ensure complete understanding and appropriate results. >"?! Listening is one of the most important, most difficult, and most neglected skills in communication. It demands that the communicator concentrate not only on the explicit meanings another person is expressing, but also on the implicit meanings, unspoken words, and undertones that may be far more significant. >"?... In the final analysis the most persuasive communication is not what is said, but what is done. When actions or attitudes contradict words, the receiver tends to discount what was said. This means that good supervisory practices such as clear assignment of responsibility and authority, fair rewards for effort, and sound policy enforcement serve to communicate in practical terms what is expected.

109 106 >0? It is unrealistic to expect successful transformation if a municipality s employees are broadcasting dissatisfaction with their municipality or plead ignorance about the strategic positioning of the organisation. Employees should in the light of this be informed about the new direction their municipality have embarked upon. Communication should focus on salient issues meaningful to those groups of internal stakeholders whom have a vested interest in the success of the municipality. How employees are informed is a matter of effective internal communication based on a strategy and plan; and managing it effectively. Developing this strategy and plan should be based on specific fundamentals. The following internal communication process is proposed: Internal Communication Analysis: Determine Strengths, Weaknesses Identify Opportunities Formulate Internal Communication Strategy: Policy; Procedures; and Projects. Define Communication Framework in terms of the IDP: Vision; Mission; Values; KPA s; Development Objectives; KPI s Performance Targets; and Projects. Determine Internal Communication Methods Design Internal Communication Structure (Integrated with the external communication structure) Translate Framework into Key Messages and Themes Determine Internal Communication Targets Implementation: Internal Communication Projects; Monitor and Review; and Feedback to Senior Management

110 107 The proposed internal communication process entails the following: >?.. An internal communication analysis should be conducted to identify communication strengths and weaknesses, as well as opportunities that will assist in creating the ideal situation. This analysis could incorporate a perception/image study. >? + %1!. + Identify the internal communication weaknesses. The communication framework should be based on the IDP with the core purpose to effectively address the communication weaknesses and to communicate the following to all internal stakeholders: The vision, mission and value system; KPA s and development objectives; KPI s and performance targets; and projects. >?. %1! ;..#.. The IDP communication framework should be translated into key messages and themes that will be meaningful to the internal stakeholders (politicians, management and employees) across all levels of the municipality. Examples: Challenges facing the municipality; Future plan; the role of employees in service delivery; etc. >"? #. Determine specific communication performance targets that must be accomplished. Without specific communication targets, internal communication would become haphazard. Examples: Internal communication must lead to employee understanding of the IDP process by 30 June 2002; Internal communication must improve employee attitudes towards the IDP process by 30 June 2002; and internal communication must facilitate positive employee behaviour towards the IDP by 30 June >"? % # An internal communication strategy must be formulated to be adhered to by management and employees alike. The strategy will stipulate the internal communication policy, procedures and projects enabling effective communication.

111 108 >"? #. Communication methods must be appropriate and must enable the sending of messages from management to employees (downward), from council to councillors (downward), from employees to management (upward), across departments (horizontally) and generally (laterally). Thus, the free flow of information and communication must be in line with the organisational structure. Examples of internal communication methods: ( Face-to-face instructions; Lectures; Conferences; Committee meetings; Interviews; Advice sessions; Conversations; Departmental meetings; Briefing sessions; Social gatherings; Labour union meetings; Training programmes; Change agents; Written instructions; Letters; Memorandums; Progress reports; Newsletters; Pamphlets; Posters; Pay slips; Annual reports; Notice boards; Corporate radio; Manuals; One-on-one interviews; Telephone conversations; Meetings; Problem solving groups; Brainstorm groups; and quality circles. >"?.#. Design a communication organisational structure (integrated with the external communication structure) that will enable effective implementation of the internal communication process. Appoint expertise (or outsource) and draft a budget to support the structure.

112 109 >"? 9 "1 The internal communication projects must be implemented and should be monitored for effectiveness and reviewed on a regular basis. >? B How municipalities relate to its external environment is a matter of perception. Clients, customers, the community, legislators, competitors, politicians, labour unions, opinion formers, activists, investors, suppliers etc., will have interaction with municipalities which will lead to a net result of knowledge, experiences, impressions, beliefs and feelings. This net result forms the perception of the municipality among its external stakeholders. A municipality faces the challenge to transform and to be perceived by external stakeholders as being positively transformed. In terms of this, a municipality has to communicate its vision and mission and explain how it intends achieving it. This warrants continuous external communication. The following external communication process is proposed: E Perception/Image Study: Determine what the image of the municipality is among its external stakeholders; Determine Strengths and Weaknesses Identify Opportunities Formulate External Communication Targets Formulate External Communication Strategy: Policy; Procedures; and Projects Define desired image and integrate it into the IDP. Finalise the Communication Framework in terms of: Vision, Mission and Values; KPA s and Development Objectives; KPI s; Performance Targets; and Projects. Translate Framework into Key Messages and Themes Design External Communication Structure (Integrated with internal communication structure) Implementation: External Communication Projects; Monitor and Review the image; and Feedback to Council and Council and Senior Management

113 110 The proposed external communication process entails the following: >? C# It is important to identify the strengths and weaknesses of the municipality s image and to identify opportunities towards improving it. It is therefore imperative to conduct a perception study, incorporating external stakeholder needs. Such analysis could be combined with an internal organisational study. >? + %1! Identify the problems relating to the municipality s current image as held by external stakeholders and decide on the image the municipality would like to project. The framework should be based on the IDP with the core purpose of addressing the image problems and to communicate the following to external stakeholders: The vision, mission and values; KPA s and development objectives; KPI s and performance targets; and projects. >?. %1! ;..#.. It is crucial to translate the communication framework into key messages and themes that is meaningful to external stakeholders across all levels of the municipality. Examples of messages or themes: Future taxes; Who to contact for what; Development projects planned in terms of what, where and when; etc. >"? B #. Determine specific communication targets that must be accomplished. Without specific communication targets, external communication would become haphazard. Examples of communication targets: External communication must lead to the understanding of the IDP process by residents, by 15 June 2002; External communication must facilitate positive behaviour of ratepayers towards payment for services, by 30 June >"? % B # An external communication strategy must be formulated to be adhered to by the communication experts, councillors, management and employees, alike. Stipulate the external communication policy, procedures and projects. >"? # B. The Communication division must apply communication methods that will effectively enable the municipality to communicate to the relevant external stakeholders. Examples of external communication methods are: New project launches;

114 Open days, tours and orientation programmes for external stakeholders; 111 Visits and speeches to various external institutions that are important to the municipality (business chambers, civic organisations, relevant NGO s, etc.); Exhibitions and trade fairs in the municipal area; Corporate image building events and promotions; etc. >"?.# B Design a communication organisational structure (integrated with the internal communication structure) that will ensure effective implementation of the external communication process. Appoint expertise (or outsource) and draft a budget to support the structure. >"? 9 "1 The external communication projects must be implemented and should be monitored for effectiveness and reviewed on a regular basis.

115 4 112 ( 7) PHASE 5: APPROVAL The proposed approval process is illustrated below: Council Approval of: Process Plan District Framework (district and local Municipalities) Draft IDP Comments from Provincial Government District-level Workshop. Inter-municipality coordination Comments from the Community and other Stakeholders Consideration of comments received from: Community and Stakeholders; District (where applicable); and Provincial Government District IDP and Local IDP s Final Approval of IDP by Municipal Council Give Notice to the Public and Publish Summary of IDP Provincial Assessment

116 113 ".. >? During this phase, the municipality should do everything in its power to ensure support for the implementation of the IDP by all stakeholders involved or affected by it. All stakeholders must have access to the draft IDP and be allowed to articulate their concerns to avoid that the process becomes an endless exercise. Thus strict time limits must be set in this regard. >0?... %1! The Systems Act prescribes that: Municipal Systems Act, 2000, Section 28. Each municipal council, within a prescribed period after the start of its elected term, must adopt a process set out in writing to guide the planning, drafting, adoption and review of its IDP; The municipality must, through appropriate mechanisms, processes and procedures established in terms of the Systems Act, chapter 4, consult the local community before adopting the process; and a municipality must give notice to the local community of particulars of the process it intends to follow. >?. + " " The provincial government usually plays a crucial role in supporting the implementation of the IDP by providing funds and management support. The provincial departments will assess the viability and feasibility of the IDP, as well as its legal compliance. By giving the provincial departments the opportunity to comment before the IDP is adopted by the municipal council, it increases the possibility that the IDP will pass the legally prescribed provincial assessment process. Each municipality should submit copies of the draft IDP to the provincial department of local government which should then check the IDP against a set of defined criteria and follow-up on the commenting process of other provincial departments, in order to ensure that comments are submitted in time. The provincial department of local government should compile comments for each municipal IDP and submit a consolidated list of such to the municipality. >?. G " <!. + : : District councils have to ensure that adjacent local municipalities are consulted and that IDP s do not propose contradicting development initiatives. The district municipality must ensure that the district IDP and the local IDP s are aligned. Each local municipality should submit their draft IDP to the district municipality and to all adjacent municipalities within and outside the boundaries of the district.

117 The district municipality (through the PIMS-Centre) should invite all local municipalities in its area to a joint workshop for discussion of the following: All cross-boundary issues; and all issues related to the distribution of responsibilities between local and district municipalities. >?. +!. All stakeholder organisations and community representatives within the municipality (including all councillors and members of the IDP representative forum) must be afforded a fair opportunity to study and comment on the draft IDP. The following process is proposed: 114 Shortly after the draft IDP has been finalised, there should be a broadly announced public meeting during which: The major content of the IDP is presented; and the procedure, format and channels for comments are announced. <( $ The IDP Steering Committee should collect, sort and document the comments. The comments will then be considered by the IDP Representative Forum. Copies of the draft IDP (or a summary thereof) should be disseminated to all councillors, all members of the IDP representative forum, other relevant stakeholders and the local media. Copies should also be made available at places accessible to the public. >+?. + ". The IDP steering committee must compile a document in which all comments are listed. An indication of how such comments were incorporated and why certain comments were omitted, must be provided. This document should be submitted to the IDP representative forum for consideration. All stakeholders and community representatives who submitted comments must receive feedback letters. >#? % " + During the period, when the community and relevant stakeholders are afforded the opportunity to comment, the councillors should also utilise the opportunity to study the draft IDP and to comment on it. This will ensure that the revised draft IDP takes care of all stakeholders concerns. All councillors should receive a copy of the draft IDP at least one (1) month before the council meets to consider it. >?. A. It is proposed that the district IDP and summaries of the local IDP s be submitted to the relevant provincial department(s).

118 115 The district summary of IDP s should include the following: The vision, mission and values of the municipalities; A summary of the key development priorities of each municipality (1-2 pages); A summary of the KPA s, development objectives, KPI s and performance targets; A list of projects with budgeted figures; and a tabular compilation of the 5 year capital investment programmes. <( $ PIMS-Centres where it exists must assist during this process. The district municipality is responsible to submit the IDP summaries to the provincial department(s). District municipalities should provide templates to the local municipalities to assist in the standardised compilation of the required information. >? "... Municipal Systems Act, 2000, In terms of the Systems Act, the municipal manager must Section 32 submit a copy of the IDP, as adopted by the municipality, to the provincial MEC for local government within 10 days of the adoption of the IDP. The IDP must be accompanied by the following: A summary of the process plan; A statement that the process plan has been complied with; and in the case of a district and local municipality, a copy of the district framework. The MEC for local government may, within 30 days of receiving the IDP, request the relevant municipality to amend or adjust the IDP in accordance with the MEC s proposals. The municipality must consider the MEC s proposals, and within 30 days of receiving the said proposals, adjust or amend the IDP. If it disagrees with the proposals of the MEC, the municipality must object to the MEC s request and furnish the MEC with reasons in writing why it disagrees. Should the municipality disagree with the inputs of the MEC, it must forward the motivating reasons in writing to the MEC. >6? 0 In terms of the Systems Act, a municipality must, within 14 days of adoption of the IDP, give notice to the public regarding: Municipal Systems Act, 2000, Section 25 (4). The adoption of the IDP by the council; and ensure that copies of the IDP (or extracts thereof) are available for public inspection at specific places. The municipality must also publicise a summary of the IDP.

119 ( 116 ( &) &) $!# *) + -) $+.,) 0 ( *) &).. *). %1! ( -) % 3 &) *).. :. & -) #. :. *,) 6. :. - 7) # :., 4) " :. 7 (,) &) $.... *) $#. -) # " "1#,) #

120 117,) Strategy implementation entails the conversion of the IDP into actions followed by results. Implementation is successful if it produces the intended results and levels of performance. The main purpose of implementation is to unite the total municipality behind strategy accomplishment and to link the operational activities of the municipality to the requirements for successful strategy execution. The implementation of strategies could be viewed as a process which guides the utilisation of the available resources of the municipality, for example finance, human resources and equipment. & $ It is essential that a municipality develops its strategies at operational level to achieve its formulated development objectives. A business plan at operational level will contribute to the achievement of the municipality s vision and mission. The success of a selected overall strategy in terms of KPA s, development objectives, KPI s and performance targets, depends on how effectively the operational activities are managed at departmental and divisional levels. Annual departmental business planning can be defined as the detailed deployment of resources to achieve the IDP in terms of its annual development objectives. It includes annual action plans, which are structured and interconnected actions with fixed target dates. Annual business planning is therefore a process which determines all activities regarding the what, where, by whom and when on an annual basis. It is furthermore directed by clearly defined KPI s and performance targets. The individual performance targets are also formulated during this process. The annual departmental business plans are derived from the five (5) year sectoral operational business plans, which is discussed in detail in section 4.3, page 84 of this document. Preferably, an individual performance plan must not have more than five (5) key objectives. Each key objective should have at least one KPI. It is proposed that the organisational structure be used to determine which positions within the municipality require a performance agreements and performance plans, i.e. the municipal manager and those managers reporting directly to him. The municipal manager should schedule individual meetings with each of the managers reporting directly to him/her to finalise the performance plans and sign the performance agreements. The following should be discussed and finalised: Individual objectives should cover the KPA s of the function the manager is responsible for; KPI s are clear and linked to the IDP;

121 118 Agreement on target dates; Agreement on weightings; Agreement on the knowledge and skills required to achieve the key objectives; Determination of the period of the annual performance plan ideally it should be from 1 July to 30 June of a specific financial year; and signing of the manager s performance plan and agreement by both the municipal manager and the manager. An example of a financial manager s performance plan may be illustrated as follows: % ) % Serial No Key Objectives Weighting Target Date 1. Monitor and control the Finance Department s budget without overspending 2. Provide a framework for financial accountability and ensure that it is applied effectively 3. Manage and control budgeting and financial planning so that the IDP is reflected in the budget 4. Manage and control expenditure so that council has a sound accounting and payment system, which prevents fraud and allows for accurate reporting May May May May May May May May May 2002 Key Performance Indicators 0% Spending deviations Delegations in place Financial regulations in place Evidence of public participation to be provided Budget approved by council Evidence to proof IDP and budget is linked Reduce inventory levels by 10% Develop and implement a procurement policy and system Develop and implement an insurance policy and procedures Performance status on date of review Reason for deviation (if applicable) Score

122 119 % ) % >? Serial No Key Objectives Weighting Target Date 5. Manage the cash flow of the council, and the council s long term liabilities so that a favourable cash flow exists May May May 2002 Key Performance Indicators Budget provides sufficiently for debt servicing Monthly assets and liability committee meetings and reports Credit rating to be A + Performance status on date of review Reason for deviation (if applicable) Score TOTAL: 100 TOTAL: NOTE: The municipal manager and the executive mayor should meet to conclude the performance plan and agreement for the municipal manager.

123 * 120 $ >? Budgets and IDP s go hand in hand. The IDP provides the step-by-step action plans, and budgets specify the costs of the planned activities. How well the municipality links the budget to the IDP requirements, can either promote or impede the process of implementation and execution. Too little funding deprives departments of the ability to execute their business plans. Too much funding, however, is a waste of the municipality s resources and reduces the financial performance. Strategy must become the driver of how budget allocations are made denying funds to the functions/departments on which strategic success or failure ultimately depends, can defeat the implementation process. >0? + A budget is a plan of action, expressed in monetary terms for a specific period, whereby limited resources are apportioned according to a basis of preferences towards unlimited needs. >? # %1! The Local Government Transition Act, 1996 (LGTA) prescribes that all municipalities should prepare and adopt annual budgets. Local Government Transition Act, 1996, Section 10G(3)(a)(i). The LGTA will however be repealed and replaced by the Municipal Finance Management Bill, 2000 (to be promulgated during 2001). The Finance Management Bill, 2000, prescribes the following in terms of the Municipal budgeting process: Municipal Finance Management Bill, 2001, Section 17. The councillor responsible for financial matters must prepare a draft annual budget for that financial year at least 4 months before the start of each financial year. The councillor for financial matters must: Ensure that a draft annual budget containing the prescribed particulars is prepared at least a prescribed number of days, or if a number of days is not prescribed, at least four months, before the start of each financial year; and Upon completion of the draft budget the municipality should follow a process of community participation in accordance with Chapter 4 of the Systems Act.

124 121 The councillor for financial matters must: Immediately upon the draft budget s preparation, publish in a newspaper of general circulation in the municipality a notice Stating that the draft annual budget is available for public scrutiny during office hours at the main administrative office of the municipality and such other places as may be specified in the notice; Inviting the public to submit written comments and representations to the municipality within a period specified in the notice; and Specifying the dates set down by the council for public hearings on the draft annual budget; and At the next sitting of the municipal council following the draft budget s preparation, table the draft budget in the council for discussion and public hearings. The councillor for financial matters must submit a copy of the municipality s draft budget immediately upon the draft budget s preparation, and a copy of the municipality s adopted budget within 7 days of the budget s adoption by the council, to: The National Treasury, in the case of a municipality whose name appears on a list published by the Minister by notice in the Government Gazette; The relevant provincial treasury, in the case of a municipality whose name does not appear on the list referred to in the paragraph above; The district municipality in whose area it falls, in the case of a local municipality; and The local municipalities in its area, in the case of a district municipality. Any comments the National Treasury or the relevant provincial treasury may wish to offer on the draft budget must be submitted to the municipality within 40 days of receipt of the draft budget. >? There are a number of budgeting techniques that are utilised in the private sector. Municipalities primarily utilise the following two (2) techniques: Incremental budgeting: and Zero-based budgeting. >? $## The incremental budget is commonly used by municipalities in South Africa. Expenditure is classified into categories and thereafter into specific items within these categories. These budget line-items, are then simply adjusted annually. The previous year s budget is used as a basis from which the next year s budget is compiled. This technique is not time consuming and can be utilised successfully. The negative aspect of this technique is however that only major deviations, compared to the previous year, are detected and queried.

125 122 >? H:0. $## The zero-based budget is based on the principle that no costs are viewed as being ongoing in nature and the manager must start from a zero-base level each year and present justification for all cost in the proposed budget, regardless of the type of cost involved. The critics of this technique argue that annual in-depth reviews are too time consuming and too costly to be really feasible. >?. >? $# The following budgeting technique, which is a combination of incremental and zerobased budgeting, is proposed: The municipality must first determine what the total realistic income for the financial year will be. This calculation must be based on realistic and affordable tariff increases; The incremental budgeting technique should then be utilised on an annual basis to adjust expenditure to fit within the calculated income figures; and The zero-based budgeting technique should be utilised every three (3) years to ensure in-depth reviewing of the municipal budget. The budget of a municipality consists of the operational budget and the capital investment budget. The operational budget is the financial plan which a municipality use to effect sustainable service delivery within the guidelines of legislation and in terms of its own affordability. To establish the amount to be allocated to these portions of the budget, careful consideration should be given to service delivery, which is quintessentially operational. This is not an easy task and should be done with care, with specific reference to the maintenance of existing assets and the procurement of new assets and infrastructure. >? ". $# A capital investment budget of a municipality consists of the non-operational needs of the community. The procurement of assets, with an expected lifespan of more than one year, can be classified as capital expenditure. Capital investment expenditure is thus the acquiring of assets that a council requires to deliver affordable services to the community, i.e. vehicles, personal computers, the construction of a clinic or road, etc. The sources of funding for capital investment could be one of the following: External loans; Internal reserve funds; Internal capital funds; Grants received; and/or income from the operating budget.

126 123 The capital investment budget consists of: Infrastructure capital; and Operational equipment capital The infrastructure capital budget provides mainly for items such as buildings, roads, storm water, electricity and water networks, etc. The operational equipment capital budget primarily provides for items required by the various departments to ensure service delivery such as vehicles, furniture, computer equipment, etc. >? $# The operational budget consists of operational service delivery items and provides inter alia for the following: Salaries/allowances of employees; Salaries/allowances of councillors; Bulk purchasing of trade services such as electricity, water, sewer and refuse removal; General expenditure such as stationery, fuel, travelling costs, etc; Maintenance costs on fixed and moveable assets; Interest and redemption costs (capital costs) on external and internal loans; Contribution to reserve funds and provision for issues such as bad debts, accumulated leave of employees, etc; and contribution to capital funding specifically operational equipment capital. As part of the operational budget, a cash flow management plan should be drafted. It is essential to determine the actual cash income expected during the financial year. This will ensure that the expenditure of the municipality is restricted within its actual means. It will furthermore assist in Municipal Systems Act, 2000, determining what provisions should be made for Sections non-payment of services. Credit control and debt collection are being dealt with in chapter 9 of the Systems Act. >+? $##.. To ensure that the municipal budget is finalised within the prescribed time frames, the following process may serve as a guideline: Draft a budgeting programme linked to time frames and indicate who is responsible for what; Municipal Finance Management Bill, 2001, Section 16. The annual budget Must be in accordance with a format as prescribed; Must include an operating budget which is balanced, so that appropriate operating expenditure does not exceed realistically anticipated revenue for the year Plus such amount of prior years accumulated surplus as is actually available for operating expenditure; or

127 124 Less such percentage of prior year s accumulated deficits as may be prescribed; Must include a capital budget which is balanced, so that appropriated capital expenditure does not exceed the amount realistically anticipated to be available for capital expenditure; and May not exceed the previous financial year s budget by more than a growth factor determined annually by the National Treasury for municipalities generally, except with the written approval of the National Treasury. When calculating, realistically anticipated revenue for the year, and the amount realistically anticipated to be available for capital expenditure, a municipality must take into account previous years actual figures in this respect and the actual revenue for the year preceding the previous financial year. The annual budget must at least contain Realistic estimates of all revenue anticipated to be received during the financial year to which the budget relates; Realistic estimates of expenditure for the financial year, broken down per vote as may be appropriate for the municipality concerned; Realistic estimates of interest and principal payments; Realistic estimates of capital expenditure for that financial year and the projected financial implications of that expenditure for future financial years, including future operating revenues and expenditures and principal and interest payments; An indication of intentions regarding borrowing and other forms of public liability that will increase the municipality s debt during that financial year and future financial years; The projected Revenue for the previous financial year; Expenditure for the previous financial year, broken down per vote; Borrowing for the previous financial year; and Funding flows from the municipality to municipal entities and from municipal entities to the municipality, during the previous financial year; The actual Revenue for the year preceding the previous financial year; Expenditure for the year preceding the previous financial year, broken down per vote; Borrowing for the year preceding the previous financial year; and Funding flows from the municipality to municipal entities and from municipal entities to the municipality, during the year preceding the previous financial year; and

128 Any other information as may be prescribed, including any multi-year budget information. When an annual budget is tabled in the municipal council, the municipal manager must submit measurable objectives for each vote in the budget. The councillor for financial matters must as soon as the aforementioned council discussion and the public hearings have been completed Direct the municipal manager to prepare the final budget for the financial year, taking into account 125 The considerations of and public hearings conducted by the council on the draft budget; Any public comment and representations received by the municipality; Any recommendations of the national treasury and the relevant provincial treasury on the draft budget; and Any guidelines and policy statements issued by the national treasury; and Table the budget in the council for approval. The councillor for financial matters must manage the budget process in such a way that the budget is tabled in the council at least 30 days before the start of the financial year to which the budget relates. A municipality must approve its annual budget before the start of the financial year to which it relates. >#? "# $.... $#. The annual operational business plans and budget are annually extracted from the 5 year IDP. Two types of business plans are required to enable a municipality to move from strategies (KPA s and development objectives) to delivery. The first is an institutional plan and the second a financial plan and both are interlinked. >?. The institutional plan includes the restructuring of the organisational structure and the compiling of sectoral operational business plans, and aims to assist a municipality in its endeavour to improve service delivery. >? % In terms of the financial plan, a 5 year projection of capital and operating expenditure is made. This plan will fully incorporate the IDP projects and operational business plans and will be supported by strategies designed to raise the revenue necessary to implement the IDP projects and business plans. The financial plan should indicate the change in priorities over the 5 year period to achieve the IDP strategies.

129 The 5 year financial plan forms the basis on which annual budgets are drafted. The annual budget must therefore reflect the priorities listed in the 5 year financial plan and any amendments must be reflected by a revision of both the annual budget and the 5 year financial plan. A financial plan reflected in a municipality s IDP must at least: (1) Include the budget projection required by section 26(h) of the Systems Act; 126 Municipal Planning and Performance Management Regulations, 2001, Section 3. (2) Indicate the financial resources that are available for capital project developments and operational expenditure; and (3) 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 may address the following: Revenue raising strategies; Asset management strategies; Financial management strategies; Capital financing strategies; Operational financing strategies; and strategies that would enhance cost-effectiveness. >? $# %1! The Systems Act requires that municipalities prepare their respective budgets in accordance with the IDP. Without an annual budget linked to the IDP, such budget will fail to achieve the development objectives set out in the IDP. An IDP that is not supported by specific operational business plans and projects, is unlikely to be incorporated in the annual budget and is therefore unlikely to be effectively implemented. The capital investment budget should incorporate the various projects identified during the IDP process whilst the operating budget should include the anticipated revenue and expenditure related to these projects. It is therefore critical that both the capital investment and operating budgets reflect the IDP priorities. >?.. +. It is important to understand the definition of surplus and deficit. A deficit occurs when expenditure exceeds revenue during a financial year whilst a surplus is the exact opposite and occurs when revenue exceeds expenditure. All municipalities keep record of their surpluses and deficits that occur in a financial year, from the date on which the municipality commenced its operation to the latest date of the financial year-end. If the total of all the surpluses in previous financial years exceeds the total of all deficits, an inappropriate surplus exits. However, if the total of all the deficits in previous financial years exceeds the surpluses, an accumulated deficit exists.

130 127 >6? " It is relatively easy to estimate revenue when preparing the budget, it is however, more difficult to collect revenue once it has been billed to consumers and ratepayers. When a municipality bills a consumer or ratepayer, a debtors balance is raised in its books. Until this debt is settled, the municipality will have an invoice indicating the amount due to it. Unfortunately, this invoice cannot be used to pay suppliers, staff and other creditors. If revenue is not collected, a municipality will not have sufficient cash to implement the IDP projects and business plans. Therefore the following factors which impact on debt collection should be considered when the annual budget is prepared: Can the community afford to pay for the services provided? Does the municipality have a credit control policy that is effectively communicated with all the relevant stakeholders? It is bad budgeting and poor financial management to provide estimates in respect of revenue in the budget, whilst knowing that such revenue will not be collected. >!? <!# When considering the budget, the municipality should determine whether there would be sufficient cash to finance the activities of the municipality during periods when little or no cash will be received. The majority of municipalities make contributions towards a working capital reserve which is a special fund that will be used to finance cash shortfalls. Other municipalities prepare cash flow budgets, which set out an estimate of the amount of cash needed to finance expenses. If there will not be sufficient cash, the estimated income may need to be increased, operating estimated expenditure reduced or the capital budget should be suspended until the cash situation improves. >? $ $## A balanced approach towards budgeting is necessary to adequately provide for social infrastructure, municipal infrastructure, operational equipment and maintenance: $ $ ( Social Infrastructure Capital Clinics; Fire Stations; Sport facilities; Municipal Police Strategies, etc. Maintenance (Operational Budget) Operational Equipment Capital Vehicles; Equipment; etc. Municipal Infrastructure Capital Roads and Storm water; Electricity; Water; Sanitation; and Solid Waste Must provide for economic development and job creation

131 < >? Integrated development planning is an ongoing process and although the IDP is prepared for five(5) years, it must be updated regularly with a total review annually. Municipal Systems Act, 2000, Section 34. A proposed evaluation and reviewing time table: < IDP SECTION UPDATE TOTAL REVIEW 1. Vision, Mission and Values Six-monthly (only if required) Annually 2. Analysis Six-monthly (only if required) Annually 3. Strategies Six-monthly (only if required) Annually 4. Projects and Business Plans Weekly, daily Monthly 5. KPI s and Performance Targets Monthly Quarterly and Annually 6. Financial Plans/Budgets Monthly Annually 7. Entire IDP Annually Annually Monitoring, evaluation and reviewing constitutes a process to assess performance of the municipality. Monitoring and evaluation are crucial to: Ensure the implementation of plans and projects; Measure the development impact of plans/projects; and ensure the efficient utilisation of resources. KPI s and performance targets will be used as a yard stick to measure performance and to rectify shortcomings. >0? # Monitoring is a continuous activity to measure KPI s and performance targets. It will provide project information to management. Monitoring includes the systematically collecting of information to enable management to evaluate whether project implementation is proceeding as it should. >? " Evaluation is a less frequent activity which is designed to measure whether and to what extend the development objectives are being achieved. It will measure the medium term impact and results of the IDP process. This provides the information required to re-appraise the IDP and specifically the development objectives and strategies.

132 129 >? "1# Reviewing entails adjustments and revisions which are based on the monitoring and evaluation of information. The monitoring results provide adjustments and corrective actions that are fed back into the planning process, to re-inform project planning, design and implementation. >?..0 + #9 " "1# Monitoring, evaluation and reviewing requires co-operation among departments of the municipality and external role players, such as NGO s, developers, contractors and consultants. Project managers are generally responsible for preparing monitoring, evaluation and reviewing reports. They will collect all the relevant information and statistics with the support of the internal line departments (e.g. engineering, finance, etc.) and an external professional team, if necessary. Where formal approval responsibility is required, council may delegate this to its executive committee (mayoral committee or committee of appointed councillors) or to a specially created review committee. In terms of legislation the public has a right to project progress and review information and should be provided with accurate and timeous feedback. Responsibilities should be allocated to specific individuals, committees and/or institutions. >+? #.. Monitoring, evaluation and reviewing are achieved through various reporting systems. The reporting format, relating to performance on a project, will vary in accordance to the management level: Detailed monitoring and reviewing are undertaken on site by an official, consultant and/or contractor, and will focus on cost, time, targets and quality performance; Senior management in a municipality (e.g. department heads) will be primarily concerned with information pertaining to the eventual outcome of the completed project and its influence on the overall operation of the municipality and the development objectives; and Councillors will have similar concerns to those of senior management, but will also be required to approve any project scope changes as they pertain to cost, time, targets and quality. Information will also be required to enable councillors to account to their constituencies and the public in general on project delivery. Whatever the required level of reporting, the presentation of information relating to project performance should: Be concise; Identify future problems; and recommend corrective actions.

133 , 130 In terms of the Systems Act, a municipality must prepare for each financial year an annual report consisting of: Municipal Systems Act, 2000, Section 46. A performance report that must reflect the following: The municipality s performance during that year in comparison to performance targets in the previous financial year; The development and service delivery priorities and performance targets for the following year; and measures that were or are to be taken to improve performance; The financial statements for that financial year prepared in terms of the Public Finance Management Act, 1999; An audit report on the financial statements and the report on the audit performance; and Public Finance Management Act, 1999, Section 89. Municipal Systems Act, 2000, Section 45(b). any other reporting requirements in terms of other applicable legislation. A municipality must table its annual report within one (1) month of receiving the audit report. The municipal manager must: By prior notice in the media, inform the local community of the meeting or meetings of council at which the municipality s annual report is tabled or discussed, which meetings must be open to the public; Give written notice of such meetings to the Auditor-General and the MEC for local government in the province; and submit copies of the minutes of those meetings to the Auditor-General and the MEC for local government in the province. Representatives of the Auditor-General and the MEC for local government in the province, are entitled to attend and to speak at such meetings, and the municipal manager must be available to respond to questions related to the annual report. The municipality must adopt its annual report, and within 14 days: Make copies of the report accessible to the public, interested organisations and the media, free of charge or at a reasonable price; and submit a copy of the report to: The MEC for local government in the province; The Auditor-General; and such other institutions as may be prescribed by regulation.

134 131 ) 1. IDP Guide Pack; 2. Strategic Management: Concepts and Principles (Arthur A. Thompson, jr; A.J. Strickland III): 1990; 3. Principles of Modern Management (Samuel C. Certo): 1991; 4. Framework Plan for Managing the Integration of separate Municipal Administrations, Systems, Procedures and Practises (Freloga): February 2000; 5. Performance Management Local Government for the 21 st Century (Department of Constitutional Development); 1998; 6. Integrated Development Planning a Strategic Management approach for officials and councillors (DBSA and NBI): March 2000; 7. Just about Everything a Manager needs to know in South Africa (Neil Flanagan; Jarvis Finger): 1998; 8. Managerial Accounting Concepts for Planning, Decision Making (Ray H. Garrison): 1994; 9. A Common Sense Approach to Business Planning (Sacher Associates): 1997; 10. Personnel Management (Edwin B. Flippo): 1999; 11. Business Management (L.R.J. van Rensburg): 1997; 12. Practical Project Management (Prof M.J.F. Köster): 2000; 13. Financial Times: Handbook of Management (Editor Stuart Crainer): 1995; 14. Organisational Development (French; Bell; Zawacki): 1998; 15. The Strategic Focused Organisation (Robert S. Koplan; David P. Norton): 2001

135 ANNEXURE A 4. LEGAL FRAMEWORK On 20 February 2001, the proclamation was issued in terms of section 124 of the Local Government: Municipal Systems Act 32 of 2000 (Systems Act), determining its coming into operation. On 1 March 2001, chapters 1 to 4 and 7 to 12 came into operation. As from 1 July 2001, chapters 5 and 6, dealing with integrated development planning (IDP) and performance management, respectively, will come into operation. This is to allow for the interim IDP processes to be completed before the new legal framework for IDP is applicable. 4.1 Integrated Development Planning The Systems Act will forever change the way in which municipalities conduct their planning. Integrated development planning existed prior to the Systems Act and has been implemented by municipalities in terms of the Local Government Transition Act 209 of 1993, read with the Development Facilitation Act 67 of The Systems Act, however, determines a new and far-reaching legal framework for the IDP process. The principles of chapter 1 of the DFA still apply and must be read together with the Systems Act (section 23(2)). 4.2 Features of the IDP The IDP is the principal strategic planning instrument which guides and informs all planning and development, and all decisions with regard to planning, management and development in the municipality (section 35(1)). Any strategic planning by the municipality must take place within the framework of the IDP and should not be seen as separate from the IDP. In section 25, the Act lists a few features of the plan. It says that the IDP links, integrates and co-ordinates plans; aligns the municipality s resources and capacity (e.g. budget) with the implementation of the plan; forms the basis on which the budget must be based; and is compatible with national and provincial development plans that are binding on the municipality in terms of legislation. 4.3 Planning Principles The Systems Act subjects the IDP process to two main principles: Planning must be developmentally oriented, i.e. geared towards fulfilling the objects and duties of sections 152 and 153 of the Constitution and towards the realisation, together with other organs of state, of the rights to a safe and healthy environment, protection of property, housing, health care, food, water, social security and education (section 23). Planning must take place within the framework of co-operative government. Municipal planning cannot take place in isolation but must be aligned with the plans and strategies of national and provincial government as well as with other municipalities (section 24). A-1

136 4.4 Adoption Each council must adopt its IDP within a period prescribed by the Minister. The power to adopt an IDP cannot be delegated (section 59(1)(a)) by the council. The first IDPs in terms of the new framework will have to be adopted by before 31st March Within 14 days after the adoption of the IDP, the municipality must inform the public that the plan has been adopted and that copies are available for inspection (section 25(4)). A summary of the plan must also be published, for instance, in the local newspaper. A newly elected council may adopt the previous IDP, provided that the community is consulted on development needs and priorities; plans and planning requirements, binding on the municipality in terms of national and provincial legislation, are identified. 4.5 Minimum Content Section 26 of the Act lists the items that must be included in the IDP: (a) a vision for long-term development, with specific emphasis on the municipality s development and internal transformation needs (b) an assessment of existing levels of development, including an identification of communities excluded from services; (c) the development priorities and objectives, including local economic development aims and internal transformation needs; (d) the development strategies, which must be aligned with national and provincial plans and planning requirements; (e) a spatial development framework, including basic guidelines for land use management; (f) the operational strategies; (g) disaster management plans; (h) a financial plan, including a budget projection for at least the next three years; and (i) the key performance indicators and key performance targets. This is the minimum content of the IDP, without which it cannot be legally adopted. However, the council, on its own initiative, can add other components to the plan. 4.6 Co-ordination and Management The driving force behind the drafting of the IDP must be the executive committee or the executive mayor. If the municipality has neither of the two, it must appoint a committee of councillors to drive the IDP process. The office-bearers or committees must assign the relevant responsibilities to the municipal manager and eventually submit the draft for adoption by the council (section 30). These provisions remove any doubt as to where the IDP nerve-centre is located. It is evident that the drafting of the IDP must be initiated and managed at the highest political and administrative level of the municipality. The process may not be in the hands of one particular line department or unit. A-2

137 4.7 Amending and Reviewing an IDP A council must review its IDP annually (section 34). This annual review must be conducted in accordance with its system of performance management. The IDP must also be reviewed when circumstances require and can be amended according to a procedure, which will be prescribed by the Minister. 4.8 Status of the IDP The IDP legally binds the municipality in the exercise of its executive authority. No single executive decision may be in conflict with the IDP. The Systems Act specifically instructs the municipality to implement its IDP (section 35(1)(b) and 36). The only exception occurs when there is inconsistency between the IDP and national or provincial legislation. In that case, the legislation prevails (section 35(1)(b)). The IDP also binds all other persons, but only to the extent that this is stipulated in a bylaw (section 35). The IDP will remain in force until the next elected council adopts a new one. 4.9 Adoption of a Process for IDP Before 16 July 2001 the council must have adopted a document that sets out how it intends to go about drafting, adopting and reviewing the IDP. The local community must be consulted on the process before its adoption, and must be informed of the process after it has been adopted (section 28). Thus, the council must allow the public to comment on a draft process before its adoption. This could be done by publishing the draft process in a local newspaper and inviting comment within a specified time period. Another way of getting comments from the public is to organise a public meeting to present and discuss the draft process. These two methods can be used together. The process for the drafting of the IDP must have a predetermined programme with time frames. It must allow, through procedures established for that, for the local community to be consulted on the development needs and priorities (see 2) and 3) under Minimum content above as well as the further discussion below). It must also allow for the local community to participate in the drafting of the IDP (see below). It must further make provision for other organs of state, including traditional authorities, to be consulted. Importantly, the process must identify all plans and planning requirements that are binding on the municipality. The IDP of a local municipality must be aligned with the district framework (see below). When the municipality drafts its IDP, it must take into account the district IDP and the submissions of the district municipality Consultation on Needs and Priorities The council must establish a mechanism for assessing the development needs in the municipality whereby the residents take centre stage and inform the council of issues such as maintenance backlogs, the existence of poorly serviced areas, problems experienced with service delivery, etc. The Act emphasises the identification of communities that are excluded from service delivery. It is thus critical that communities have access to this participatory process. A-3

138 The next step is to evaluate and prioritise the various development needs. In prioritising development needs, the council must consult the community. Since it is impossible to prioritise without all the relevant information, two participatory processes must be established: a process that involves the community in assessing its needs; and a process that facilitates consultation with the community on the prioritisation of those needs in the municipality. Processes to assess development needs could include ward audits, on-site visits and public meetings. The process for assessment of needs should take place at the lowest level possible, preferably at ward level. The ward committees, where they exist, are critical vehicles for conveying the needs of the ward to the council and should be incorporated in any such participatory process. Public participation in the prioritisation of needs should preferably be preceded by a document in which the council outlines its initial evaluation of development needs. The council could then invite comments on the document by publishing it in the local newspaper or any similar medium, or by holding public meetings. The discussion with the community about the prioritisation of needs should take place at a municipal level to ensure that ideas are exchanged throughout the municipal area Community Involvement in Drafting The IDP process, adopted by the council, must make provision for the local community to be involved in the drafting of the IDP. This means that the council must facilitate community participation in every stage of the IDP process, from assessing and prioritising the needs to devising the strategies, objectives and goals. The council must use its existing community participation mechanisms to communicate regularly with the community on the evolving IDP, to receive comments and input from the community, and creatively to use community initiatives in the drafting process. An example of the latter could be the request for a ward committee to prepare draft strategies on issues such as community safety or to present ideas on LED for its ward, which could be incorporated into the council s IDP strategies District framework Each district municipality must adopt an IDP framework after following a consultative process with the local municipalities. The framework must identify all plans and planning requirements that apply to the district or any of its local municipalities in terms of national or provincial legislation; identify those matters where IDP processes throughout the district require alignment; specify the principles to be applied in respect of those matters; co-ordinate the approach to be adopted in respect thereof; determine procedures for consultation with local municipalities during the drafting processes of their IDP s; and determine procedures to effect amendments to the framework. District municipalities must have adopted their first framework by 16 July A-4

139 4.13 District IDP Section 29(2)(a) provides that a district municipality must conduct its own integrated development planning in close consultation with the local municipalities in that area. This district IDP must be aligned with the district framework and the IDP processes. Proposals of local municipalities must be taken into account in the drafting process Role of the Province The provincial minister for local government (MEC) may monitor the drafting process and assist in drafting, adopting and reviewing its IDP. The MEC may also facilitate the alignment of the IDPs of different municipalities and the alignment of IDP s with national and provincial programmes (section 31). Within ten days after approval, the municipal manager must submit a copy to the MEC. A summary of the drafting process, a statement explaining that the process has been complied with, and a copy of the relevant district framework must accompany the submission (section 32(1)). The MEC can request a municipality to adjust the content of its IDP in accordance with the MEC s proposals if it does not comply with the Systems Act or is not aligned with any of the plans and strategies of other affected municipalities or organs of state. With regard to the process followed, the MEC can request the municipality to comply with its own drafting process or with a provision in the Systems Act concerning that process, if the municipality has failed to do so. After following the correct process, the content of the IDP must be changed, if necessary (section 32(2)). The municipality must respond to the MEC s request within 30 days. If it disagrees, it must object to the request and give reasons. If necessary, the MEC must appoint an ad hoc committee to decide on the objection. If that committee rejects the municipality s objection, the municipality must comply with the MECs s request within 30 days (sections 32(3) and (4)). The MEC appoints representatives of local government, provincial government and national government as members of such an ad hoc committee. The municipality, provincial organ(s) or national organ(s) involved in the dispute must agree on the appointment of the representatives of their spheres of government (section 33(2)). If at least two spheres of government agree on a matter, it is so decided. A-5

140 NATIONAL LEGISLATION APPLICABLE TO THE FUNCTIONS OF LOCAL GOVERNMENT ANNEXURE B GENERAL MANAGEMENT NATIONAL LEGISLATION Constitution of the Republic of South Africa 1996 Local Government: Municipal Systems Act,2000 Local Government: Municipal Structures Act, 1998 Consumer Affairs (Unfair Business Practices) Act, 1996 Local Government Crossboundary Municipalities Act, 2000 Local Government: Municipal Demarcation Act, 1998 Municipal Electoral Act, 2000 Organised Local Government Act, 1997 Promotion of Local Government Affairs Act, 1983 Local Government Transition Act, 1993 REPEALED EXCEPT FINANCIAL PROVISIONS Occupational Health and Safety Act, 1993 SUMMARY/SCOPE OF LEGISLATION To introduce a new constitution for the Republic of South Africa and to provide for matters incidental thereto To give effect to developmental local government To set principles, mechanisms and processes to promote social and economic upliftment of communities and to ensure access to affordable services for all To set a framework for planning, performance management, resource mobilisation and organisational change and community participation To provide for the establishment of municipalities in accordance with the requirements relating to the categories and types of municipality, the division of functions and powers between municipalities and appropriate electoral systems To regulate internal systems, structures and office-bearers To provide for the investigation, prohibition and control of unfair business practices in the interest of consumers To authorise the establishment of cross-boundary municipalities, to provide for the re-determination of the boundaries of such municipalities under certain circumstances and to provide for matters connected therewith To provide for the demarcation of boundaries of municipalities for the establishment of new municipalities To regulate municipal elections To amend certain laws and to provide for matters connected therewith To provide for the recognition of national and provincial organisations representing the different categories of municipalities and the designation of representatives to participate in the National Council of Provinces etc, To provide for the co-ordination of functions of general interest to local authorities and of those functions of local authorities which should in the national interest be co-ordinated To provide for matters relating to municipalities in the interim phase, powers and functions of municipalities and actions of officials and councillors To provide for occupational health and safety in the work place and the protection of persons outside the work place against hazards to health and safety arising from activities of persons at the work place B-1

141 GENERAL MANAGEMENT (Continued) NATIONAL LEGISLATION Promotion of Access to Information Act, 2000 Promotion of Fair Administrative Justice Act, 2000 Promotion of Equality and Prevention of Unfair Discrimination Act, 2000 SUMMARY/SCOPE OF LEGISLATION To control and regulate the right of all persons to access to information To give effect to the right to administrative action that is lawful, reasonable, and procedurally fair in terms of the Constitution of the Republic of South Africa 1996 To give effect to section 9 read with item 23(1) of Schedule 6 to the Constitution of the Republic of South Africa, 1996, to prevent and prohibit unfair discrimination and harassment To promote equality and to eliminate unfair discrimination and to prevent and prohibit hate speech and to provide for matters connected therewith FINANCE NATIONAL LEGISLATION Appropriation of Revenue Act, 2000 Businesses Act, 1991 Debt Collectors Act, 1998 Income Tax Act, 1962 Insolvency Act, 1936 Local Authorities Capital Development Fund Ordinance, 1978 READ WITH Local Government Affairs Second Amendment Act, 1993 Municipal Accountants Act, 1988 SUMMARY/SCOPE OF LEGISLATION To provide for a fair division of revenue to be collected nationally between national, provincial and local government spheres for the 2000/2001 financial year and for matters connected therewith To repeal certain laws regarding the licensing of businesses To provide for the licensing and operation of certain businesses, shop hours and related matters To provide for controlled debt collecting To provide for the payment of taxes on income of persons and taxes on donations To consolidate and amend the law relating to insolvent persons and their estates To provide for the establishment and management of a Capital Development Fund and for matters incidental thereto To provide for the establishment of a Board for Municipal Accountants and for the registration of Municipal Accountants and the control of their profession B-2

142 FINANCE (Continued) NATIONAL LEGISLATION Municipal Consolidated Loans Fund Ordinance, 1952 READ WITH Local Government Affairs Second Amendment Act, 1993 Municipal Finance Management Bill, 2000 Pension Benefits for Councillors of Local Authorities Act, 1987 Public Finance Management Act, 1999 Prescribed Rate of Interest Act, 1975 Reporting by Public Entities Act, 1992 Value-added Tax Act, 1991 Local Government Transition Act, 1993 REPEALED EXCEPT FINANCIAL PROVISIONS Local Government: Property Rates Bill, 2000 SUMMARY/SCOPE OF LEGISLATION To provide for the establishment and management of a Consolidated Loans Fund as approved by the Premier To regulate financial management in the local sphere of government to require that all revenue, expenditure assets and liabilities of municipalities and municipal entities are managed efficiently and effectively, to determine responsibilities of persons entrusted with local sphere financial management and to determine certain conditions and to provide for matters connected therewith To provide for pension benefits for councillors To regulate financial management in the national and provincial governments and, inter alia, provincial public entities To prescribe and regulate the levying of interest from debtors To provide for the reporting to Parliament by public entities To provide for the taxation in respect of the supply of goods and services To provide for matters relating to municipalities in the interim phase, powers and functions of municipalities and actions of officials and councillors To regulate general property valuation ADMINISTRATION / CORPORATE AND LEGAL SERVICES NATIONAL LEGISLATION Electoral Act, 1998 Expropriation Act, 1975 SUMMARY/SCOPE OF LEGISLATION To manage and regulate elections on national, provincial and local government level To provide for the expropriation of land and other property for public and certain other purposes and matters connected thereto B-3

143 HOUSING NATIONAL LEGISLATION Housing Arrangements Act, 1993 Rental Housing Act, 1999 Residential Landlord and Tenant Act, 1997 SUMMARY/SCOPE OF LEGISLATION To provide for the establishment of a National and Regional Housing Board(s) and the abolition of certain existing boards. To define the responsibility of Government in respect of rental housing To provide for the regulation of landlord-tenant relations in order to promote stability in the residential rental sector in the province. TOWN PLANNING AND SPATIAL DEVELOPMENT NATIONAL LEGISLATION Provision of Certain Land for Settlement, 1993 Advertising on Roads & Ribbon Development Act, 1940 Black Communities Development Act, 1984 Annexure F Development Facilitation Act, 1995 Physical Planning Act, 1991 Regulations on Advertisements on or Visible from National Roads, 1998 Subdivision of Agricultural Land Act, 1970 Town and Regional Planners Act, 1984 SUMMARY/SCOPE OF LEGISLATION To provide for the designation of certain land and to regulate the subdivision of such land and settlement of persons thereon. To control advertising on national and regional roads To control the land use rights within the former black areas To provide for Integrated Development Plans, reflecting current planning and to institutionalise development tribunals for evaluating applications To provide guidelines for the drafting of urban development plans To control all advertising on national and regional roads To control the subdivision of farm land and agricultural holdings To provide for the training and registration of professional Town Planners B-4

144 ENVIRONMENT NATIONAL LEGISLATION Environmental Conservation Act, 1982 Environment Conservation Act, 1989 National Environmental Management Act, 1998 SUMMARY/SCOPE OF LEGISLATION To provide for environmental impact assessments and exemptions, noise control areas etc To provide for the effective protection and controlled utilisation of the environment and for matters incidental thereto To provide for co-operative environmental governance by establishing principles for decision-making on matters affecting the environment and to provide for matters connected therewith ENGINEERING / TECHNICAL SERVICES NATIONAL LEGISLATION Advertising on Roads & Ribbon Development Act, 1940 Regulations on Advertisements on or Visible from National Roads, 1998 National Building Regulations and Building Standards Act, 1977 National Water Act, 1998 Water Services Act, 1997 SUMMARY/SCOPE OF LEGISLATION To control advertising on national and regional roads To control all advertising on national and regional roads To provide for the promotion of uniformity in the law relating to the erection of buildings in the areas of jurisdiction of local authorities and for the prescribing of building standards To provide for fundamental reform of the laws relating to water resources To provide for the rights of access to basic water supply and sanitation, national standards and norms for tariffs and services development plans B-5

145 SAFETY AND SECURITY NATIONAL LEGISLATION Criminal Procedure Act, 1977 Disaster Management Bill, 2000 Fire Brigade Services Act, 1987 Gatherings and Demonstration Act, 1993 Hazardous Substances Act, 1973 National Land Transport Act, 2000 National Land Transport Interim Arrangements Act, 1998 Urban Transport Act, 1977, as amended 1992 National Road Traffic Act, 1996 Road Traffic Management Corporation Act, 1999 Prevention of Illegal Eviction from and Unlawful Occupation of Land Act, 1998 Regulation of Gatherings Act, 1993 South African Police Service Act, 1995 SUMMARY/SCOPE OF LEGISLATION To consolidate and regulate procedure and evidence in criminal proceedings To provide for an integrated, co-ordinated and common approach to disaster management by all spheres of government and related matters To provide for the rendering of fire brigade services and certain conditions to the rendering of the service To control public gatherings and procession of marches To control matters relating to gas, petrol and liquids To provide for issues regarding land transportation and matters incidental thereto To make arrangements relevant to transport planning and public road transport services To promote the planning and provision of adequate urban transport facilities To regulate traffic on public roads, the registration and licensing of motor vehicles and drivers, including fitness requirements and incidental matters To provide in the public interest for co-operative and coordinated strategic planning, regulation, facilitation and law enforcement in respect of road traffic matters and to provide for matters connected therewith To provide for the eviction of unlawful occupants of land and the protection of the rights of such occupants under certain conditions To control public gatherings and procession of marches To provide, inter alia, for a municipal (city) police HEALTH AND WELFARE NATIONAL LEGISLATION Hazardous Substances Act, 1973 Health Act, 1977 National Policy For Health Act, 1990 SUMMARY/SCOPE OF LEGISLATION To control matters relating to gas, petrol and liquids To provide for the promotion of the health of the inhabitants of the Republic, for the rendering of health services, to define the duties, powers and responsibilities of certain authorities which render such services and for the co-ordination of the services To provide for control measures to promote the health of the inhabitants of the Republic and for matters connected thereto B-6

146 HUMAN RESOURCES NATIONAL LEGISLATION Employment Equity Act, 1998 SUMMARY/SCOPE OF LEGISLATION To promote the constitutional right of equality and the exercise of true democracy To eliminate unfair discrimination in employment Basic Conditions of Employment Act, 1997 Compensation of Occupational Injuries and Diseases Act, 1993 Labour Relations Act, 1995 To redress the effect of unfair discrimination in the work place to achieve a workforce representative of the population To give effect to the right to fair labour practice To provide for the regulation of basic conditions of employment To regulate the categories of persons entitled to compensation for occupational injuries and diseases, and to determine the degree of disabled employees To regulate the organisational rights of trade unions, the right to strike and lock-outs To promote and facilitate collective bargaining and employee participation in decision-making Skills Development Act, 1998 Skills Development Levies Act, 1999 South African Qualifications Authority Act, 1995 Unemployment Insurance Act, 1966 To provide simple procedures for labour disputes To provide for the implementation of strategies to develop and improve the skills of the South African workforce, to provide for learnerships, the regulation of employment services and the financing of skills development To provide for the imposition of a skills development levy and for matters connected therewith To provide for the establishment of a National Qualifications Framework and the registration of National Standards Bodies and Standards Generating Bodies and the financing thereof To provide for the payment of benefits to certain persons and the dependants of certain deceased persons and to provide for the combating of unemployment ELECTRICITY NATIONAL LEGISLATION Electricity Act, 1987 SUMMARY/SCOPE OF LEGISLATION To provide for and regulate the supply of electricity and matters connected thereto B-7

147 3 ;( 3C3 ( 3 BACKLOG ASSESSMENT WARD: WARD COUNCILLOR: SERVICE : SERVICE PROVISION LEVELS: 0 No service 1 Access to service in area 2 Basic service to households 3 Full service Serial No Location Provision level Target level Priority Target date Funding requirements Comments/Initiatives ANNEXURE C

148 ANNEXURE D CAPITAL INVESTMENT PROJECT PRIORITISATION MODEL 1. THE PURPOSE OF CAPITAL PRIORITISATION PLANNING SYSTEM The purpose of a capital project prioritisation model is to ensure that a municipality s five year capital program is based on the following principles: Affordability and other relevant cost factors; Community needs and service delivery; Local economic and social development; Job creation; Income potential; and/or Urgency. 2. VALUE OF THE PRIORITISATION MODEL (a) Public participation The prioritisation model ensures public participation in identifying and prioritising capital projects. The IDP representative forum will do the final prioritisation of all submitted projects before these projects are submitted to Council for final approval. (b) Planning value The prioritisation model enables a municipality: To consider all capital project proposals; To prioritise capital projects in terms of the community needs for a specific financial year; To prioritise projects within its means in terms of capital loan repayments; and To ensure that human resources, equipment/material needed and other relevant resources are available to implement a specific project. 3. REQUIREMENTS FOR A FIVE YEAR CAPITAL INVESTMENT PROGRAMME (a) (b) All capital proposals must stem from the key development priorities identified during the IDP process. The capital investment programme must cover a period of five years. Year one (1) will be prioritised and included in the annual capital budget. Years two (2), three (3), four (4) and five (5) must not be regarded as final and should be reconsidered annually. 4. PROJECT CLASSIFICATION Projects should be classified into the following three categories: (a) Municipal infrastructure Roads and storm water; Electricity main supply and networks; Water main supply and networks; Sewer main supply and networks; and solid waste infrastructure. D-1

149 (b) Social infrastructure Health; Public safety; Environment; Parks and recreation; Libraries; Clinics; Metro and municipal police stations; Sport facilities; etc. (c) Local Economic Development New urban development; Business development; Industrial development; and any other development that will help grow the local economy and create jobs. 5. FUNCTIONING OF THE PRIORITISATION MODEL The following arrangements should be made to ensure that the model is put into practice successfully: 5.1 IDP Steering Committee (a) (b) (c) (d) The IDP steering committee identifies capital projects aimed at the development objectives of the municipality. The identified projects are then described in detail in terms of budget requirements and motivated as to why it is a priority. The IDP steering committee thereupon refers the identified projects to the IDP representative forum. The IDP representative forum will then, in accordance with the prioritisation model, prioritise the identified capital projects. 5.2 IDP Representative Forum After the IDP steering committee has determined the capital project proposals, it is submitted to the IDP representative forum for final prioritisation. Functioning of the IDP representative forum: (a) (b) (c) (d) The fact that the IDP representative forum evaluates all project proposals, ensures that projects of different departments and functions are evaluated in the same manner. Subjectivity is therefore largely limited because members of the IDP representative forum are independent of departments. Allotting points is based on consensus according to the input from the IDP steering committee. The quality of the long term planning process is at stake at this stage and sufficient time should be provided for it. The IDP steering committee is finally responsible to finalise the results of the prioritisation process. The 5 year capital investment programme, arranged in order of priority, is then submitted to each department for finalisation. D-2

150 (e) The total capital investment programme is then submitted to council for approval and inclusion in the annual budget for execution. Diagrammatic illustration of the functioning of the prioritisation model: IDP Steering Committee Identify all capital projects IDP Representative Forum Prioritise the capital projects Municipal Departments Execution of projects Council Final approval 6. CRITERIA It is of utmost importance that weights must be allocated to each criteria item within each model. The sum total of these weights must be 100 in each model. This will be illustrated later in this annexure. These weights can be revised annually and in terms of specific circumstances. 6.1 Municipal Infrastructure Proposed Criteria: (a) Statutory requirements; (b) Service delivery; (c) Essential services; (d) Economic stimulation; (e) Community benefit; (f) Visibility; (g) Environmental influence; (h) Permanent job creation; (i) Labour based construction; (j) Income generating; (k) Aesthetical improvement; and (l) cost implication 6.2 Social Infrastructure Proposed Criteria: (a) Statutory requirements; (b) Service delivery; (c) Community benefit; (d) Environmental influence; (e) Essential service; (f) Permanent job creation; (g) Labour based construction; (h) Social upliftment; (i) Cost implication; (j) Visibility; and (k) aesthetical improvement. D-3

151 6.3 Local Economic Development Proposed Criteria: (a) Economic growth; (b) Permanent job creation; (c) Cost implication; (d) Return on investment; (e) Compliance with spatial development framework; (f) Risk factor; (g) Time factor; (h) Service rendering; (i) Environmental influence; and (j) aesthetical improvement. 7. RATING GUIDELINES It is important to rate the capital projects in terms of the following: (a) Statutory requirements. Is legislation regulating the implementation of this project? (b) Service delivery. Will this project enhance service delivery? (c) Essential services. Is this an essential service? (d) Economic stimulation. Will the execution of this project stimulate the local economy? (e) Community benefit. Will this project be to the benefit of the community? (f) Visibility. Is this a visible project? (g) Environmental influence. environment? Will this have a positive/negative influence on the (h) Permanent job creation. Will this project lead to permanent job creation? (i) Labour based construction. Is this project labour intensive that would lead to temporary job creation? (j) Income generating. Will this project generate additional income for the municipality? (k) Aesthetical improvement. Will this project improve the aesthetical appearance of the city/town? (l) Social upliftment. Will the execution of this project contribute to the social upliftment of the community? (m) Return on investment. Will there be a return on investment by the municipality? (n) Compliance with spatial development framework. Does this project comply with the municipality s spatial development framework? (o) Risk factor. Is there risk involved for the municipality in executing this project? (p) Time factor. Is the time factor involved before development takes place, acceptable to the municipality? (q) Service rendering. Will this development enhance service rendering to the community? D-4

152 The answers to the questions in (a)-(q) above can either be yes or no. Depending on the answer, it must be rated as follows: Yes 1 No 0 The only exception to the above rating guidelines is the following: Cost implication. What will the cost implication be for the municipality? This should be rated as follows: < R > R < R1,5m > R1,5m EXAMPLE OF PRIORITISATION MODEL Municipal Infrastructure: Prioritisation Department/Division : Electricity Budget implication : R ,00 Project description : Electrical Reticulation Ward 4 Serial No Criteria IDP Rep. Forum (a) Weight (b) Total (a) x (b) 1. Statutory requirement Service delivery Essential services Economic stimulation Community benefit Visibility Environmental influence Permanent job creation Labour based construction Income generating Aesthetical improvement Cost implication Weight total 100 Prioritisation result CAPITAL BUDGET AFFORDABILITY Before the final prioritisation of projects takes place, the Finance Department must indicate what amount of capital will be available for year 1 of the capital investment programme as well as for years 2-5 of the programme. Once this amount has been determined, it must be broken down per category. This will assist the IDP representative forum in compiling a draft capital investment programme. The following example illustrates this principle: Department of Finance determines capital amount in terms of affordability i.e. the amount of interest and redemption payments to be made and sustained over at least a ten year period. For the purpose of this example let us assume that a municipal capital loan of R45m can be serviced. D-5

153 As an example the department of finance s projection of an affordable capital investment programme may include the following: Source of Finance Year 1 R Mil Year 2 R Mil Year 3 R Mil Year 4 R Mil Year 5 R Mil Loans (own funding) Grants CMIP NER Other Total annual capital investment R63m R64m R60m R52m R56m programme It is important to note that only projects funded from loans (own funding) need to be prioritised. Projects funded from other sources i.e. grants, CMIP, NER or other funding need not be prioritised since these funds are allocated for specific projects. Each individual project must be prioritised with the relevant models in order to determine the order of priority in which it will be executed. This will also indicate which projects will be executed in year 1, or whether it will be moved to year 2, 3, 4 or 5. After all projects have been prioritised, they will be sorted into the five year model. Each financial year s capital investment programme (own funding) will then be determined in accordance with the above mentioned five (5) year projection: Category Year 1 Year 2 Year 3 Year 4 Year 5 Municipal Infrastructure R27m R25m R23m R18m R19m Social Infrastructure R13m R11m R13m R9m R8m Local Economic Development R5m R4m R4m R3m R3m Total Budget (own funding) R45m R40m R40m R30m R30m This breakdown per category assists in determining cut-off points during the prioritisation process. Projects remaining after this cut-off point are then moved towards years 2, 3, 4 or 5 of the capital investment programme. D-6

154 MUNICIPAL INFRASTRUCTURE (OWN FUNDING) Priority Project description Priority point Budget (R) 1 Relining of bulk water line 90 2,000,000 2 Rand water connection 88 1,000,000 3 Gravel roads Upgrading all wards 83 7,500,000 4 Informal settlement roads & Storm water Phase 3 & ,000,000 5 Replacement of major electrical substation 80 7,500,000 6 Electrification Informal settlement 80 3,000,000 7 Upgrading of sewer system wards ,000,000 Year 1 3,000,000 8 Local Distributor Roads and Storm water informal 80 8,000,000 settlement 9 Parking investigation CBD , Traffic Calming Measures 78 1,500, Storm water systems agricultural holdings 78 1,750, Upgrading roads industrial area 75 1,250, Electricity Substation phase 1-Ward ,000, Electricity Substation phase 2-Ward ,000, Upgrading of 33KV line 75 4,000, Electrical reticulation in-fill 73 25,000,000 Year 2 sites 2,000, Electrical reticulation new industrial area 73 5,000, Registration of servitudes , Upgrading 11kv line -agricultural holdings 70 1,000, Electrical network strengthening , Upgrade transformers of Mini Subs 70 3,000, Main access routes: Counter funding Dept. transport 70 3,000, kv Overhead line & Substation (Phase2) 70 23,000,000 Year 3 10,000, Rehabilitation of residential tar roads 70 8,000, Public Transport Implementation 70 6,000, Upgrading of Taxi facilities 68 18,000,000 Year 4 4,000, Protection of meter boxes- phase ,000, Protection of meter boxes- phase ,000, Major Roads signage 65 1,000, Purchase of property -new taxi rank 65 8,000,000 19,000,000 Year 5 D-7

155 SOCIAL INFRASTRUCTURE (OWN FUNDING) Priority Project description Priority point Budget (R) 1 Soccer Stadium upgrade 85 2,500,000 2 Fencing of Multipurpose Centre ,000 3 Clinic informal settlements ,640 4 Satellite Station ward ,630 5 Incident Command Vehicle ,000 6 Development waterways 83 2,250,000 7 Picnic Resort Completion ,000 8 Fencing of parks ,000 9 Upgrading Picnic terrain , Ablution facilities recreational grounds , Upgrading municipal swimming pools , Resurfacing tennis and netball courts , Upgrading Sport facilities 80 4,500,000 13,000,000 Year 1 14 Suburban clinics upgrading Wards ,250, New Clinic industrial area 80 1,200, Upgrading Civic Centre 80 7,380, Resurfacing of tarmac -civic centre , Extension of existing offices fire station , Access road Fire station , Emergency Satellite station wards ,000 11,000,000 Year 2 21 Storm water drainage & Fire Hydrants all wards , Access road & parking metro police , Machine room doors Fire station -ward , 400, Informal business trading area 75 1,334, Upgrading Fire Station 75 2,398, Upgrading traffic signals , Replacement of outdated traffic control , Robots 75 1,500, Traffic signals priority listing , Hostels upgrading 73 1,992, Development of open space 73 1,750,000 13,000,000 Year 3 32 Recreational facilities , Environmental Plan , Community Health Centre 70 5,295, New Library 70 1,800, Remedial actions regarding toxic seepage , Upgrading of ablutions public facilities , Parking surface/ Carports clinics ,000 9,000,000 Year 4 39 Municipal dumping site - rehabilitation 70 2,500, Purchasing of land - new cemetery 70 1,500, Upgrading municipal court 65 4,000,000 8,000,000 Year 5 D-8

156 LOCAL ECONOMIC DEVELOPMENT (OWN FUNDING) Priority Project description Priority point Budget (R) 1 Redevelopment & Marketing strategy 85 1,000,000 2 Marketing Council Properties ,000 3 Roads upgrading suburban 80 1,200,000 4 Roads LED development 80 2,700,000 5,000,000 Year 1 5 Industrial development services 80 4,000,000 4,000,000 Year 2 6 New Road Bridge phase ,000,000 4,000,000 Year 3 7 New Road Bridge phase ,000,000 3,000,000 Year 4 8 Development Plan Ward ,000 9 Roads Upgrading Ward ,464, Development Plan ward , Development Plan Ward , Erven, Survey, Subdivide & Rezone , Revision of town planning scheme 70 65,733 3,000,000 Year 5 D-9