Moses Kotane

Draft 2011/2012 Budget and MTREF

Filed under Budget   April 26th, 2011

Mayor’s Report
Budget Report
Municipal Manager’s Quality Certificate
Municipal Budget
Budget-MKDA

Filed under Budget   July 15th, 2010

Click here to download Budget Speech 2009-2010

Download the Operating and Expenditure Budget

Download the Capital Budget

Download the MTREF Schedules

Download the Budget-AppendixA

Download the Moses Kotane Development Agency Budget

Filed under Budget   September 15th, 2009

Click here to view 2009-2010 Capital Budget

MTREF Budget Schedules 2009-2010

Filed under Budget   April 21st, 2009

Download: Summary Budget 2008/09.xls

Filed under Budget   July 14th, 2008

Introduction

The municipality is starting yet another year on a very high note. A new valuation roll for the period 2008 to 2012 will be implemented on 1 July 2008. The Municipality is one of only two municipalities within the Bojanala Platinum District Municipality region to implement a valuation roll that was compiled in terms of new legislation, the Local Government: Municipal Property Rates Act, Act No. 6 of 2004.

Together with the new valuation roll, the Municipality is implementing its Property Rates Policy consistent with the Act. The Council will also adopt a Property Rates By-Law that will give effect to the Property Rates Policy.

The Council took great care in observing the principles of equity, affordability, sustainability and cost efficiency in the compilation of these documents. We are confident that the Municipality’s revenue base is well established.

MFMA Reform Process

The Budget for 2008/2009 has, as in the previous two years, been structured to comply with the Municipal Finance Management Act. The Finance Department is still in the process of converting the accounting system to GRAP. The process wil probably take another year or two to complete.

Municipal Services

As in the past service delivery will remain one of our biggest challenges. The provision of bulk water for mining activities to the North and the West of the Pilanesberg Game Reserve as well as the Municipality is currently in a planning phase. These developments within the Municipal area is a very exciting prospect but also brings with it enormous duties and responsibilities. The delivery of basic services within our area of jurisdiction will therefore remain the major priority.

M.T.R.E.F.

The Medium Term Revenue and Expenditure Framework for 2008/2009 provides for Operating Expenditure of R 222 Million and R 22 million for the Moses Kotane Development Agency.

The Capital Expenditure will be R 163.7 Million and will be funded as follows:

The Capital Expenditure for the Moses Kotane Development Agency amounts to R 27,5 Million which will be financed as follows:

Conclusion

The draft Annual Budget for 2008/2009 and the MTREF for a three period is hereby tabled in terms of section 16 of the MFMA.

Please accept my appreciation for the support from the Speaker, Chief Whip, Executive Committee members and all other councillors for their assistance in achieving our goals.

The Municipal Manager and his staff must also be commended for their hard work and dedication to achieve the very ambitious goals.

Hon. Clr. P. L. Molelekeng (Mayor)
Chairperson of the Executive Committee

Filed under Budget   July 14th, 2008

Download: Budget Evaluation Checklist.xls

Filed under Budget   July 13th, 2008

Filed under Budget   July 13th, 2008

Download: Consumers Accounts Current vs Increase.xls

Table of Contents

Average Account of a Household
Average Account of a Business
Average Account of a Light Industry
Assesment Rates Income 2007/2008
Assesment Rates Income 2006/2007
Assesment Rates Income 2005/2006
Property Tax Income 2006/2007

Filed under Budget   July 13th, 2008

Download: Capital Budget 0809.xls

Filed under Budget   July 13th, 2008

Introduction

The MFMA, implemented on 1 July 2004, has brought about a very new paradigm shift towards the budget process at local government level.

Medium Municipalities were required to comply with the new process with effect from the 2006/2007 financial year.

The Moses Kotane Local Municipality’s 2008/2009 budget and MTREF have therefore again been developed to comply to the fullest extend with section 17 of the mentioned Act

The budget is linked to the draft revised IDP while performance agreements of the accounting officer and senior management will be linked as soon as the final budget is approved by Council on 30 May 2008.

The draft budget document also includes the revised budget for 2007/2008.

The 2007/2008 revised budget could fortunately be finalized with a minimum effect. The estimated expenditure will not exceed to the total amount budgeted for
while revenue is expected to meet the budgeted target.

Medium Term Revenue and Expenditure Framework (MTREF)

The budget document consists of high-level VOTES and the various GFS functions and sub-functions. Votes are generally described as the highest level of administrative functions for appropriate service delivery, policy setting and performance measurement. For example: The Budget and Treasury Office; Corporate Services; Engineering Services etc.

GFS Functions are for example Electricity while GFS Sub-functions relates to street lighting.

Delivery Analysis at Local Government Level

1. Top Challenges

• To provide access to basic services to all;
• To provide sound, effective and efficient service delivery
• To provide an improved a diversified local economy that will reduce unemployment, poverty and bring a better live to all in the municipality;
• To promote a safe and healthy environment;
• To develop a community that commits itself to support development and service delivery through the Botho-Pele principal with regular payment for services;
• To provide a responsible and accountable leadership;

Internal Focus

1. Top Challenges

• To further establish the water services delivery structure in the MKLM administration;
• To ensure the provision of services to communities in a sustainable manner;
• To extend the municipality’s tax and revenue base;
• To implement the MTREF in a transparent and effective manner;
• To further develop and maintain a sound and effective administration;
• To develop further capacity with in the administration;
• To implement the newly developed total IT solution and database;
• To extend service delivery and excess to information and pay points to all wards in the municipality;
• To implement the traffic management system;
• To encourage the involvement of communities in the matters of local government

Budget Process Overview

1. Political Oversight on the MTREF Budget Process

The budget preparation process commenced in July 2007 with the adoption of the Budget Process Plan by the Council and the establishment of the Budget Steering Committee.

he process further unfolded with various meeting, workshops attended by, and officials.

2. Integration and Review of the IDP

The IDP revision process and the budget process were fully integrated to obtain the best possible results. Various workshops and meetings were held with community members, ward committees, Councillors and other interest parties.

3. Prioritization of Resource Allocations

The Council is committed to allocate scares financial resources to functional service delivery goals determined in the IDP and policy of National Government such as free basic services like water and electricity, Refuse removal etc. The transfer of water services to the municipality requires additional funding to integrate the existing fragmented structure and to develop and refurbish the assets to be transferred.

Alignment of the MTREF Budget with the IDP

The previous budgets of MKLM have been aligned with the IDP while this budget and MTREF is IDP driven. Only projects included in the revised IDP have been budgeted for.
Full details with regard to the above are indicated in the Budget and IDP reconciliation template.

Budget related Policies, By-Laws and Overview and Amendments

The following Budget related policies have been revised and are included in the budget documentation:

1. Tariff policy and Rates Policy

The tariff policy have been revised to provide for a increase of service charges to sustain service delivery at least at existing levels. With the implementation of the new valuation roll property rates will provide and additional income of R2, 9m.

2. Financial Policies, Credit Control, Debt Collection and Indigent Policy

A new set of policies has been developed and consolidated in one document that will be known as the MKLM financial policies.

3. The Free Basic Services policy provides for free basic water to all households and will cost the municipality R 13 million for the new financial year. Free basic electricity is provided for all households with an income less than R 1100 pm. The cost will be R 4.0 million for the financial year under discussion. Property owners with a income les that R 1 100 pm will receive a rebate of 30%

4. Investment of Funds are done in terms in terms of the regulation promulgated by the Minister of Finance in government Gazette 27431.

5. The Supply Chain Management Policy have been adopted by Council on 14 December 2005. Implementation has been done from 1 January 2006. The system fully complies with the MFMA and Regulations promulgated in terms of the Act.

6. Virement, Adjustment Budgets and Unforeseen and Unavoidable Expenditure is being dealt with in terms of the MFMA.

7. Infrastructure is financed with MIG funding while larger projects are funded with external loans and the Councils own revenue resources. External borrowing is controlled not to exceed GRAP guidelines. The cost of servicing loans is maintained below 15% of the operating budget.

8. The Water and Sanitation By-laws as well as Property Rates By Laws are hereby submitted for final approval.

9. The new valuation roll will be implemented on 1 July 2008. Property values has increased as a results of market tendencies and will affect the property rates of certain properties. Rates has set to yield an income of 10% above the previous financial year.

Budget Assumptions

As stated in the foreword to the budget certain assumption can be made
About external and internal factors that could and do influence the budget.

The following are of interest:

Population Migration Employment and Poverty

A tendency exists that the population is increasing in areas surrounding the Pilanesberg National Park. Ledig and the Saulspoort area is a good example.

Unemployment levels remains at a very high level in the MKLM area of jurisdiction. Approximately 60% of all households are earning less than R 800 per month. This situation influence cost recovery to such a extend that the extension of the Municipality’s revenue base is extremely difficult.

Development of Local Economy

The operating budget of R222 million will contribute further to LED while the Capital Budget will largely contribute to local employment.

Collection of Property Rates

The non-payment of service charges remains a problem and strict credit control will have to be applied.

Macro Economic Factors

The inflation rate increase to over 9% in January 2008 while price of crude oil is at an all time high of 106 US dollar. This will seriously affect service delivery as construction prices will increase rapidly.

Funding the Budget

Financial Performance

Taking in consideration that MKLM is only seven years old financial performance has been excellent with the implementation of the first valuation roll on 1 July 2002. The local revenue base increased from a mere R 200 000 in 2001 to R 219 million in 2008/2009. The accumulated surplus, provisions and reserves increased from R 4.0 million in 2000/2001 to R 15 million on 30 June 2007.

Long Term Financial Outlook

Taking in consideration the high level of unemployment and the predominately-rural nature of MKLM, rapid local economic development will be the only solution to generate additional revenue for the financing of infrastructure projects in future. The council has therefore established the MKLM development Agency to focus on economic development in the short and long term.

Sources of Funding

The 2008/2009 Budget and MTREF will be financed as follows:

Operating Budget

Capital Budget

Disclosure on Allocations made by the Municipality

No allocation is provided to other municipalities or organizations in the 2008/2009 MTREF Budget year.

Disclosure on the Implementation of the MFMA and other relevant Legislation

The Moses Kotane Local Municipality has comply to a large extend with the
MFMA. This budget endeavor to comply with chapter 4 of the Act; Chapter 11 has been implemented from 1 January 2006; Chapter 9 will be fully complied with from 1 July 2006 while the Council and Accounting officer strive to comply with all other provisions of the said Act. The financial statements for 2006/2007 has been completed in time and the Audit finalized by 30 November 2007 and the annual report submitted to Council on 31 January 2008. The Audit report was unqualified.

Filed under Budget   July 13th, 2008

Download: Budget MKDA

Table of Contents

Summary of Salaries
Allowances for Board
Salaries CEO Office
Salaries, Wages and Allowances Investments Promotion Dept
Salaries, Wages and Allowances Sup Dept
Salaries, Wages and Allowances HR and Fin Dept
Operational Expenditure
Capital Budget

Filed under Budget   July 13th, 2008

Download: Budget GFS 0809 2008.xls

Table of Contents

Summary
Vote 1 Mayoral Executive 1
Vote 2 Mayoral Executive 2
Council General Administration
Office of the Speaker

Vote 3 Office of the Accounting Officer
Vote 4 Budget and Treasury Office
Finance Governance
Budget Planning and Implementation
Financial and Asset Management
Revenue and Dept Collection
Information Technology Services
Vote 5 Engineering Services & Infrastructure
Engineering Services & Infrastructure Administration
Streetlighting
Roads and Stormwater
Planning and Building Control
Project Management Unit
Sanitation
Sanitation: Treatmentplant Mogwase
Sanitation: Treatmentplant Madikwe
Sanitation: Reticulation
Water
Water: Administration
Water: Westground and Services
Water: Madikwe Water Treating Works
Water: Pella Water Treating Works
Water: Madikwe Retail & Bulk Lines
Water: Madikwe Rural
Water: Molatedi
Water: Mankwe Vaalkopdam
Water: Eastern Retail Mankwe, Ex Vaalkopdam & Boreholes Maabeskral
Vote 6 Community Services
Community Services Administration
Cemetery
Disaster Management and Fire Services
Libraries
Municipal Buildings
Parks and Recreation
Refuse Removal
Transport Services
Safety and Security
Traffic
Vote 7 Corporate Services
Corporate Services Administration
Human Resources
Legal Services
Vote 8 Strategic Management
Strategic Management Administration
IDP
PMS
Town Planning
Vote 9 Housing and LED
Housing and LED Administration
Housing
LED

Filed under Budget   July 13th, 2008

Download: AppA_NW375_2009.xls

Table of Contents

General Information
Capital Budget
Operating Budget
Allocations to Local Municipalities
Monthly Account
Liquidity Data
External Investments
Remuneration Packages
Councillor Allowances
Free Basic Services
Property Rates

Completed by:
H.L. Fourie, Deputy Director Expenditure

Filed under Budget   July 13th, 2008

Download Full PDF

Moses Kotane Local Municipality
Budget Statement 1 2008-2011

Filed under Budget   April 3rd, 2008

MTREF Budget Schedules
Download MTREF Budget Schedules 2008-2009 / 2010-2011

Revised Budget Statement 2
Download MTREF Budget revised 0708 January 2008

Revised Capital Budget
Download Capital Budget Revised 0708 January 08

Filed under Budget   April 3rd, 2008

Download MTREF Budget Moses Kotane 0708 for (Microsoft Excel)

Table of Contents

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Filed under Budget   December 10th, 2007

Report of the Director of Finance for the Year ended 30 June 2007

Introduction

The Moses Kotane Local Municipality, since establishment, has been very focused on service delivery and the upliftment of the community which it serves. Various awards can confirm the commitment towards this goal but there is still the enormous challenge of improving the quality of life of all our people by delivering basic and affordable services. In the 2006/2007 financial year, the Council continued to make service delivery a priority in the Rural Areas. The program included the installation and maintenance of high mast- and streetlights, building and repairs to roads, establishing sport facilities, libraries and many other amenities. The transfer of the full water and sanitation operation from 1 July 2006 from DWAF and two Water Boards broad about a major change in service delivery and increased the staff complement with 140 people. Assets to the value of R 427 million were transferred while the operating budget increased with more than R 70 million per annum.

Download Full Report PDF

Filed under Budget   November 30th, 2007