2013-13 BUDGET - Greater Tubatse Municipality

Transcription

2013-13 BUDGET
TABLE OF CONTENTS
1
THE MAYOR'S REPORT
2
RESOLUTIONS
3
EXECUTIVE SUMMARY
4
ANNUAL BUDGET TABLES A1 TO A10:
TABLE A1:
BUDGET SUMMARY
TABLE A2:
BUDGETED FINACIAL PERFORMANCE
TABLE A3:
TABLE A4:
TABLE A5:
BUDGETED CAPITAL EXPENDITURE
TABLE A6:
BUDGETED FINANCIAL POSITION
TABLE A7:
BUDGETED CASH FLOW
TABLE A8:
CASH BACKED RESERVES/ACCUMALATED SUPLUS
TABLE A9:
ASST MANAGEMENT
TABLE A10: BASIC SERVICE DELIVERY MEASUREMENT
5
SUPPORTING DOCUMENTATION
OVERVIEW OF BUDGET PROCESS
OVERVIEW OF ALIGNMENT OF ANNUAL BUDGET WITHH IDP
6
BUDGET RELATED POLICIES
TARIFF POLICY ON PROPERTY RATES
TARIFF POLICY ON REFUSE REMOVAL
TARIFF POLICY ON WATER - SEKHUKUNE
TARIFF POLICY ON SANITATION - SEKHUKUNE
MUNICIPAL PROPERTY RATES POLICY
CREDIT CONTROL AN DEBT COLLECTION POLICY
CASH MANAGEMENT AND INVESTMENT POLICY
SUPPLY CHAIN MANAGEMENT POLICY
INDIGENTS POLICY
WRITE - OFF POLICY
7
SUPPORTING DOCUMENTATION CONT…..
BUDGET ASSUMPTIONS
SERVICE DELIVERY AND BUDGET IMPLEMENTATION PLAN
CAPITAL EXPENDITRE DETAILS
QUALITY CERTIFICATE
TABLE OF CONTENTS cont…..
8
12
SCHEDULE A TABLE SA1 TO SA37
SA1:
SUPPORTING DETAIL TO BUGETED FINACIAL PEFORMANCE
SA2:
MATRIX FINANCIAL PERFORMANCE BUDGET
SA3:
SUPPORTING DETAIL TO BUGETED FINACIAL POSITION
SA4:
RECONCILIATION OD IDP, STRATEGIC OBJECTIVES AND BUDGET REVENUE
SA5:
RECONCILIATION OD IDP, STRATEGIC OBJECTIVES AND BUDGET EXPENDITURE
SA6:
MEASUABLE PERFORMANCE OBJECTIVES
SA7:
PERFORMANCE INDICATORS AND BENCHMARKS
SA8:
SOCIAL, ECONOMIC AND DEMOGRAPHIC STATOCS AND ASSUMPTIONS
SA9:
FUNDING MEASUREMENT
SA10:
PROPERTY RATES SUMMARY
SA11:
PROPERTY RATES BY CATEGORY - CURRENT YEAR
SA12:
PROPERTY RATES BY CATEGORY - BUDGET YEAR
SA13:
PROPERTY RATES BY CATEGORY
SA14:
HOUSEHOLD BILLS
SA15:
INVESTMENT PARTCULARS BY TYPE
SA16:
INVESTMENT PARTCULARS BY TYPE
SA17:
BORROWING
SA18:
TRANSFERS AND GRANT RECEIPTS
SA19:
EXPENDITURE ON TRANSFER AND GRANT PROGRAMME
SA20:
RECONCILLIATION OF TRANSFERS, GTANT RECEIPTS AND UNSPENT FUNDS
SA21:
TRANSFERS AND GRANTS MADE BY THE MUNICIPALITY
SA22:
SUMMARY COUNCILLOR AND STAFF BENEFITS
SA23:
SALARIES, ALLOWANCES AND BENEFITS
SA24:
SUMMARY OF PERSONNEL NUMBERS
SA25:
BUDGETED MONTHLY REVENUE AND EXPENDITURE
SA26:
BUDGETED MONTHLY REVENUE AND EXPENDITURE - MUNICIPAL VOTE
SA27:
BUDGETED MONTHLY REVENUE AND EXPENDITURE - STANDARD CLASSSIFICATION
SA28:
BUDGETED MONTHLY CAPITAL EXPENDITURE - MUNICIPAL VOTE
SA29:
BUDGETED MONTHLY CAPITAL EXPENDITURE - STANDARD CLASSIFICATION
SA30:
BUDGETED MONTHLY CASH FLOW
SA31:
LIST OF EXTERNAL MECHANISMS
SA32:
CONTRACTS HAVING FUTURE BUDGETARY IMPLICATIONS
SA33:
CAPITAL EXPENDITURE ON NEW ASSETS BY ASSET CLASS
SA34a:
CAPITAL EXPENDITURE ON THE RENEWAL OF EXISTING ASSETS BY ASSET CLASS
SA34b:
REPAIR AND MAINTENANCE EXPENDIURE BY ASSET CLASS
SA34c:
DEPRECIATION BY ASSET CLASS
SA35:
FUTURE FINANCIAL IMPLICATIOS OF THE CAPITAL BUDGET
SA36:
DETAIL CAPITAL BUDGET
SA37:
PROJECTS DELAYED FROM PREVIOUS FINACIAL YEARS
ANNUAL BUDGET CHARTS
PROCESS
PLAN
OVERVIEW
ACTIVITIES RELATING TO
NEW BUDGET FOR YEARS
2012/13 - 2014
Aug 11
1. Review the IDP and Budget
processes undertaken for
2012/2013 budget preparation,
and adapt the processes to
address deficiencies, develop
improvements and ensure
integration of processes for the
2012/13 - 2016 budgets.
2. Document the updated process
and circulate to Councillors and
Management for adoption.
3. Establish the schedules for the
next cycle.
4 Advertise the budget process
and schedules – no later than 31/08/2012
5 Establish forums for
consultation on budget and IDP
preparation.
6 Establish budget committees
and teams.
7 Ensure technical systems,
procedures and standardised
documentation are in place.
8 Align consultations on budget
with consultations on IDP.
9 Review external mechanisms for
possible changes to agreements
impacting on next budget.
INTEGRATED DEVELOPMENT
PLAN FOR 2012/13 - 2014
Aug 11
1. Analysis and review of IDP
process and development of
improvements for next cycle.
2. Council approves the revised
process
3. Advertise new process, and
schedules for consultations and
meetings of forums and
committees – no later than 31/08/2009
4. Align consultations on IDP with
consultation on budget
Sep 11
11 Initiate the strategic planning,
IDP and budget consultations
with stakeholders to update
stakeholders’ needs analysis and
obtain feedback on results of
2010/2011 year – outputs,
outcomes and evaluation of
performance.
11 Consult with stakeholders on any
proposed new or changes to
external mechanisms for service
delivery.
12 Prepare internal analysis of
financial and non-financial
performance of 2010/2011
incorporating stakeholders
feedback.
13 Analyse gaps between actual
and planned performance and
assess the impacts on next threeyear
plans.
14 Based on financial statements
2010/2011 and performance
review, determine the financial
position of the municipality and
assess its financial capacity and
potential impacts on future
strategies and budgets.
Sep 11
5. Review IDP performance over past
year and consult with stakeholders
on performance and changes to
needs.
Sep 11
15 In consultation with Mayoral
Committee, establish the future
directions and priority areas for
the municipality to guide the
budget allocations and IDP
plans. (Incorporate feedback in 11)
16 Confirm existing and set new
policy priorities for next three
years.
17 Mayoral Committee adopts
policy directions and priority
areas.
18 Identify all factors that impact
on future budgets and determine
broad financial parameters.
19 Determine the funding/revenue
envelope potentially available for
next three years.
20 Determine the most likely
financial outlook and identify
need for changes to fiscal
strategies.
21 Refine funding policies
including tariff structures.
22 Prepare initial allocations based
on financial capacity and future
outlook.
Sep 11
6. In consultation with the Mayoral
Committee update future
directions, strategies and
priorities for next 3 – 5 years.
(Incorporate feedback from
stakeholders )
Nov 11
23. Mayoral Committee articulates
outcomes, objectives, priorities
and outputs desired for next 3
years.
Nov 11
7. Mayoral Committee articulates
outcomes, objectives, priorities
and outputs desired for next 3
years.
24. Receive inputs from National and
Provincial Government and
other bodies on factors
influencing the budget.
8. Prepare draft updates to IDP
plans, services and projects with
updated financial impacts.
25. Prepare drafts for IDP and the
capital and operational plans
with cost and revenue estimates.
Nov 11
26. Prepare estimates of preliminary
functional allocations based on
projections on past performance
and adjusted for known factors,
known commitments (e.g.
backlogs) and asset maintenance
requirements.
27. Adjust plans to align with
resources available and policy
priorities.
28. Finalise preliminary options for
IDP and budget for next three
years.
29. Consolidate draft municipal
entity business plans and
budgets with municipality plans
and budget (e.g. WRDA).
Nov 11
9. Integration of the IDP including
updates and the budget
framework.
Dec 11
30. Consultations with Mayoral
Committee on preliminary
budget and IDP medium term
proposals.
31. Mayoral Committee discusses
preliminary budget and IDP
proposals with priorities and
objectives set out in the
medium term proposals.
32. Mayoral Committee determines
strategic choices on outcomes
and broad financial allocations
across functions. This is
undertaken using strategic
planning models that inform the
Mayoral Committee of financial
impacts of various choices and
planning scenarios
Dec 11
11 Mayoral Committee determines
strategic choices on outcomes and
broad financial allocations across
functions. This undertaken using
strategic planning models that
inform the Mayoral Committee
of financial impacts of various
choices and planning scenarios
Jan 12
33. Continue finalisations of
detailed plans and budgets
Jan 12
11. Continue finalisation of detailed
plans.
34. National and Provincial
accounting officers finalise any
adjustments to projected
allocations for next three years
no later than in their budgets.
35. Assess mid year review of
2011/2012 budget
for impacts on budgets for next
three years. Also incorporate
any changes from National and
Provincial governments on
three-year allocations.
36. Review tariffs and develop
options for changes to be
included in draft budget.
37. Incorporate changes in
preliminary budget and IDP
proposals to take account of
assessment from mid-year
review and consultations on
tariffs.
Feb 12
38. Finalise detailed draft budget in
uniform formats.
Feb 12
12. Finalise detailed updates to IDP
plans and align with budget.
39. Consolidate the budgets of
municipal entities and the
municipality.
13. Mayoral Committee receives
budget and IDP updates.
40. Mayoral Committee receives
budget and IDP updates.
WRDM notifies details of any
transfers to local municipalities
no later than 1 March. 2012
14. Optional consultation on changes
to IDP.
Mar 12
41. Consolidate the WRDM plans
and budget with business plans
of municipal entities.
42. Forward copy of budget and
updates to IDP to National and
Provincial Governments for
review.
43. Integrate and align the budget
and IDP documentation.
44. Finalise budget for next three
years in prescribed formats.
45. Mayoral Committee adopts
budget.
46. Executive Mayor tables the
budget in Council by
31 March 2012.
Mar 12
15. Integrate and align the budget and
IDP documentation.
16. Finalise updated IDP for next
three years.
17. Mayoral Committee adopts
updated IDP.
18. Executive Mayor tables the
updated IDP in Council by
31 March 2012.
TARIFFS FOR 2012-2013
2008/09
2009/10
5%
increase
ASSESSMENT RATES
Burgersfort Steelpoort Ohrigstad Ga-Mapodile Tubatse Mecklenburg
2011/12
6%
increase
c/R
2010/11
6.5% increase
c/R
2012/13
6.5%
increase
c/R
2013/14
10%
increase
c/R
Residential Stands
Residential 1
Indigent family & child headed family (If qualify in terms of Rates Policy a rebate of)
Pensioners (If qualify in terms of the Rates Policy a rebate of)
Residential 2
Residential 3
0,65c/R
100%
40%
0,65c/R
0,65c/R
0.6825c/R
100%
40%
0.6825c/R
0.6825c/R
R
0.73
R
100%
40%
R
R
0.73
R
100%
40%
0.73
0.73
R
R
0.78
R
100%
40%
0.73
0.73
R
R
0.86
100%
40%
0.78
0.78
R
R
0.86
0.86
Developers
Developers (Remaining portion of the farm.)( Residential Tariff Less Discount of……)
20%
20%
20%
20%
20%
Agricultural
Agricultural
Agricultural (Business portion)
Farms with mining 1
0.735c/R
1,312c/R
2,6c/R
0.1706c/R
1.365c/R
2,73c/R
R
R
R
0.18
1.45
2.91
R
R
R
1.45
R
0.18
1.45
2.91
R
R
R
1.45
R
0.19
1.54
3.10
R
R
R
1.54
R
0.21
1.70
3.41
1,3c/R
R
R
R
R
1.45
2.91
2.91
Exempted
Exempted
Exempted
Exempted
R
R
R
1.45
2.91
2.91
Exempted
Exempted
Exempted
Exempted
R
R
R
1.54
3.10
3.10
Exempted
Exempted
Exempted
Exempted
R
R
R
1.70
3.41
3.41
Exempted
Exempted
Exempted
Exempted
R
R
R
R
0.18
2.91
0.73
1.45
R
R
R
R
0.18
2.91
0.73
1.45
R
R
R
R
0.19
3.10
0.78
1.54
R
R
R
R
0.21
3.41
0.86
1.70
R
R
R
R
50%
50%
0%
24.60
98.41
98.41
615.04
R
R
R
R
50%
50%
0%
25.83
103.33
103.33
645.79
Business Stands
Businesses, as well as Quest Houses in Urban areas with services
Business included Quest Houses without Services.(Business tariff less Discount of ……..)
Industrial
Mining
Illegal Usage
Municipal Properties
Public Infrastructure (PSI)
Public Benefit organizations(as defined in the rates policy)
Public Worship (Churches)
Government Properties
1,3c/R
2,6c/R
2,6c/R
Exempted
Exempted
Exempted
Exempted
1.365c/R
20%
1.365c/R
2,73c/R
2,73c/R
Exempted
Exempted
Exempted
Exempted
Government:Farms
Government : Farms With Mining 1
Government: Residential
Government: Public Institutions
Public Health Care Institution (as defined in policy a rebate of)
Independent Schools (as defined in policy a rebate of)
Rebates during phase in period of farms
Other
Issue of Memorandum to Attorneys for Transport of Properties
Issue of Clearance Certificate
Issue Of Valuation Certificate
Issue of Valuation Roll
Interest of prime plus 1% on outstanding amounts more than 30 days
All tariffs are VAT exclusive
0.735c/R
2,6c/R
0,65c/R
1,3c/R
50%
50%
50%
22.00
88.00
88.00
550.00
0.1706c/R
2,73c/R
0.6825c/R
1.365c/R
50%
50%
25%
23.10
92.40
92.40
577.50
R
R
R
R
Page 1 of 10
R
R
R
R
20%
30%
30%
50%
50%
0%
R
R
R
R
1.70
30%
50%
50%
0%
27.51
110.04
110.04
687.77
R
R
R
R
30.26
121.05
121.05
756.54
2008/09
10%
increase
2009/10
10%
increase
2010/11
6.5% increase
2011/12
6%
increase
2012/13
6.5%
increase
R
5 700.00
R
5 700.00
R
6 600.00
R
18 000.00
R
11 400.00
R
11 400.00
R
13 200.00
R
36 000.00
Prime plus 1%
R
8 500.00
R
8 500.00
R
10 000.00
R
27 000.00
R
17 000.00
R
17 000.00
R
20 000.00
R
54 000.00
Prime plus 1%
R
9 052.50
R
9 052.50
R
10 650.00
R
28 755.00
R
18 105.00
R
18 105.00
R
21 300.00
R
57 510.00
Prime plus 1%
R
9 595.65
R
9 595.65
R
11 289.00
R
30 480.30
R
19 191.30
R
19 191.30
R
22 578.00
R
60 960.60
Prime plus 1%
R
R
Calculate by Tech
R
R
R
Calculate by Tech
R
Prime plus 1%
2008/09
10%
increase
2009/10
10%
increase
2010/11
6.5% increase
2011/12
6%
increase
2012/13
6.5%
increase
2013/14
10%
increase
Free
Free
Free
Free
Free
Free
BULK CONTIBUTIONS
Bulk Contribution per unit
(Residential)
Sewerage
Water
Roads & Streetlights
Total
Sewerage
(Business)
Water
Total
Interest of prime plus 1% on outstanding amounts more than 30 days
REFUSE
Indigent People
Income per household less than two times the social grant
month or as amended by Council
Currently
Per Bin
Residential 1 Stands
(Size of the stand)
Stand (0 to 500 sqm)
Stand(501 and more)
From 1July 2012
Only on improved stands
Valuation (R1 -50000)
Valuation (R51,000 -500,000)
Valuation (R500,001 -1,000,000)
Valuation (R1,000,000 and more)
According to
valuation
(R/CU/Month
Residential 2 & 3 Stands
Per unit/flat
Currently per bin
From 1 July 2012 per unit
Valuation (R51,000 -500,000)
Valuation (R500,001 -1,000,000)
Valuation (R1,000,000 and more)
According to
valuation
Businesses
0 to 1000 sqm
Currently
100 R
110.00 R
117.15 R
Industries
1001 and more per additional 1000sqm
per bin
100 R
110.00 R
117.15 R
From 1 July 2012
Per sqm of building
Per square meter
per square meter
Containers
Per container once a week
Per container twice a week
Per container three times a week
Per container five times per week
Government Prop &
Schools(size of Building).
0 to 1000 sqm
1001 and more per additional 1000sqm
Churches
Fix charge
OTHER
Disposal at Landfill site
(garden refuse)
Maximum pay- load of vehicle less than 750kg
More than 750kg
More than 1 ton
Cleaning of
Vacant Stands or sidewalks
Per square meter for cutting or cleaning of rubbish only
Per square meter for removing the cuttings or rubbish
R
R
R
Purchase of Refuse Bin
70.00 R
0 R
R
R
per ton
77.00 R
110.00 R
82.01 R
117.15 R
86.93
124.18
R
R
R
R
Calculate by Tech
R
R
R
R
Prime plus 1%
-
R
R
-
R
R
R
100.00
150.00
200.00
R
R
R
110.00
165.00
220.00
R
100.00
R
110.00
R
R
R
100.00
150.00
200.00
R
R
R
110.00
165.00
220.00
124.18
R
132.25
R
145.48
124.18
R
132.25
R
145.48
-
R
R
2.00
-
R
R
2.20
-
Free
R
R
R
R
Per bin
Per bin
70.00 R
100.00 R
2013/14
10%
increase
850.00
1 700.00
2 550.00
4 250.00
R
R
R
R
77.00 R
935.00
1 870.00
2 805.00
4 675.00
R
R
R
R
R
82.01 R
995.78
1 991.55
2 987.33
4 978.88
R
R
86.11
R
R
R
R
1 055.52
2 111.04
3 166.56
5 277.61
R
R
R
R
1 124.13
2 248.26
3 372.39
5 620.65
R
R
R
R
1 236.54
2 473.09
3 709.63
6 182.72
70.00 R
100.00 R
77.00 R
110.00 R
82.01 R
117.15 R
86.93
124.18
R
R
92.58
132.25
R
R
101.83
145.48
150.00 R
165.00 R
175.73 R
186.27
R
198.38
R
218.21
R
R
Free
121.00 R
121.00 R
Free
133.10 R
133.10 R
Free
141.75 R
141.75 R
Free
150.26
150.26
R
R
160.02
160.02
R
R
176.03
146.00
R
R
2.75 R
1.10 R
3.03 R
1.21 R
3.22 R
1.29 R
3.41
1.37
R
R
3.64
1.45
R
R
4.00
1.60
Cost plus 10%
Cost plus 10%
Cost plus 10%
Free
Cost plus 10%
Free
Cost plus 10%
Cost plus 10%
Reoving non-perishable refuse
Per occasion
Per occasion
R
450.00
R
495.00
Carcass Removal
Calf,Cat,Sheep,Foal,Goat,Lamb,Pig or poultry
Any other animal
Maximum charge per removal
Per carcass
Per carcass
R
R
R
60.00
120.00
300.00
R
R
R
66.00
132.00
330.00
Developers Contribution
New developments and subdivisions per new stand
Per stand
R
500.00
R
550.00
Interest on outstanding amounts more than 30 days
Prime plus 1%
Page 2 of 10
Prime plus 1%
Prime plus 1%
Prime plus 1%
Prime plus 1%
Prime plus 1%
2008/09
10%
increase
CEMETRIES
Ohrigstad(Residents)
Ohrigstad( Non -Residents)
Burgersfort(Residents)
Burgersfort( Non-Residents)
Ga-Mapodile(Residents)
Ga-Mapodile(Non-Residents)
Praktiseer(Residents)
Praktiseer( Non -Residents)
Residents of Steelpoort if buried in any of the other cemetries will be treaded as residents
R
R
R
R
R
R
R
R
Photocopies (per page - all sizes)
RENT/HIRE OF
COMMUNITY HALLS
R
R
R
R
R
R
R
R
2008/09
LIBRARIES
Membership Fees per year
423.50
605.00
423.50
605.00
302.50
423.50
302.50
423.50
2009/10
10%
increase
Scholars
Students
Other
Household
Institutional
Renewal of membership
school kids
Refundable Deposit
Community Halls
Council Chamber Old Building
Council Chamber Civic Centre
R
R
R
R
R
R
R
R
Page 3 of 10
49.50
77.00
132.00
130.00
150.00
27.50
3.30
-
465.85
665.50
465.85
665.50
332.75
465.85
332.75
465.85
R
R
R
R
R
R
R
R
2009/10
R
R
R
R
R
R
R
R
54.45
84.70
145.20
143.00
165.00
30.25
3.63
-
2011/12
6%
increase
2010/11
6.5% increase
496.13
708.76
496.13
708.76
354.38
496.13
354.38
496.13
R
R
R
R
R
R
R
R
2010/11
R
R
R
R
R
R
R
R
57.99
90.21
154.64
152.30
175.73
32.22
3.87
1.00
525.90
751.28
525.90
751.28
375.64
525.90
375.64
525.90
2012/13
6.5%
increase
R
R
R
R
R
R
R
R
2011/12
R
R
R
R
R
R
R
R
R
R
R
R
61.47
95.62
163.92
161.43
186.27
34.15
4.10
1.06
500.00
100.00
250.00
350.00
560.08
800.12
560.08
800.12
400.06
560.08
400.06
560.08
2013/14
10%
increase
R
R
R
R
R
R
R
R
2012/13
R
R
R
R
R
R
R
R
R
R
R
R
65.46
101.83
174.57
171.93
198.38
36.37
4.36
1.13
532.50
106.50
266.25
372.75
616.09
880.13
616.09
880.13
440.06
616.09
440.06
616.09
2013/14
R
R
R
R
R
R
R
R
R
R
R
R
72.01
112.02
192.03
189.12
218.21
40.01
4.80
1.24
585.75
117.15
292.88
410.03
BILLBOARDS TARRIFS ACCORDING TO COUNCIL POLICY
Application Fees: 3rd Party Billboards<= 18sqm
2008/09
10%
increase
Rural Areas
2009/10
10%
increase
2011/12
6%
increase
2010/11
6.5% increase
2012/13
6.5%
increase
2013/14
10%
increase
Urban Areas
Rural Areas
Urban Areas
Rural Areas
Urban Areas
Rural Areas
R
R
R
R
R
R
1 000.00
2 000.00
2 500.00
3 500.00
3 500.00
5 000.00
R
R
R
R
R
R
1 100.00
2 200.00
2 750.00
3 850.00
3 850.00
5 500.00
R
R
R
R
R
R
1 171.50
2 343.00
2 928.75
4 100.25
4 100.25
5 857.50
R
R
R
R
R
R
1 241.79
2 483.58
3 104.48
4 346.27
4 346.27
6 208.95
R
R
R
R
R
R
1 322.51
2 645.01
3 306.27
4 628.77
4 628.77
6 612.53
R
R
R
R
R
R
1 454.76
2 909.51
3 636.89
5 091.65
5 091.65
7 273.78
Urban Areas
R
R
R
200.00
400.00
50.00
R
R
R
220.00
440.00
55.00
R
R
R
234.30
468.60
58.58
R
R
R
248.36
496.72
62.09
R
R
R
264.50
529.00
66.13
R
R
R
290.95
581.90
72.74
Application Fee :Any other signs
R
100.00
R
110.00
R
117.15
R
124.18
R
132.25
R
145.48
Estate Agent Registration Fee/annum for display of ' on show ' boards
R
500.00
R
550.00
R
585.75
R
620.90
R
661.25
R
727.38
Content renewal fee (for third party signage)
R
100.00 R
110.00
Administration Fee: Seizing and Confiscation of signs (excluding removal/dismantling costs,excluding any fines or penalties)
R
Billboards --- any size
R
1 000.00 R
1 100.00
Any other signs such as estate agent boards,posters,on-premises
per annum
signs etc(perRsign) 200.00 R
220.00
Licence fee/annum:Approved 3rd party billboards<=18sqm
per annum
R
500.00 R
550.00
Licence fee/annum:Approved 3rd party billboards>18<40sqm
per annum
R
700.00 R
770.00
Licence fee/annum:Approved 3rd party billboards>40sqm
per week
R
1 000.00 R
1 100.00
3rd Party Banners and Flags:Licence Fee /week/banner, poster or flag
R
200.00 R
220.00
Trailer advertising:
Application or Licence Fee per annum per trailer (each trailer should
R
1 000.00 R
1 100.00
have an approval Nr)
Daily Fee to advertise
R
100.00 R
110.00
Note Building plan approval fees for approval of the structure, building line
relaxation fees and height relaxation fees can also be charged
Above fees do not cover for advertisements put out on tender by Council
and awarded under a fixed contract such as illuminated street name
advertisements,litter bins;suburban name signs, bus shelter signage,billboards on Municipal Land ,etc.
These tariffs will be annually reviewed and published by Council
R
117.15
R
124.18
R
132.25
R
145.48
R
R
R
R
R
R
R
1 171.50
234.30
585.75
820.05
1 171.50
234.30
1 171.50
R
R
R
R
R
R
R
1 241.79
248.36
620.90
869.25
1 241.79
248.36
1 241.79
R
R
R
R
R
R
R
1 322.51
264.50
661.25
925.75
1 322.51
264.50
1 322.51
R
R
R
R
R
R
R
1 454.76
290.95
727.38
1 018.33
1 454.76
290.95
1 454.76
R
117.15
R
124.18
R
132.25
R
145.48
Application Fees : 3rd Party Billboards>=18-40sqm
Application Fees : 3rd Party Billboards>=40sqm
Application Fee:Separate loose standing on -premises signs
(not on formal structures provided by GTM)
Application Fee Banners and Flags (per banner or flag)
Page 4 of 10
BUILDING PLAN FEES
New buildings:- a) up to 150m²
New buildings:-b) on balance above 150m²
Minimum payable
Additions to existing buildings
Alterations to or inside existing building
Minimum payable
Amended plans/Redesign/new proposal (after submission)
Minimum payable
Engineers design/Concrete slabs/structures/Timber structures
Minimum payable
Engineers design/Steel structures
Minimum payable
Sewage/drainage plan
Minimum payable
2008/09
10%
increase
2009/10
10%
increase
2010/11
6.5% increase
2011/12
6%
increase
2012/13
6.5%
increase
2013/14
10%
increase
R1-38/m²
R1-43/m²
R
110.00
Same as nr1
R2-20/R200-00
or part thereof
Non existing
Non existing
Non existing
R0-11m²
Non existing
R0-11m²
Non existing
R16-50/50m²
or part thereof
R
93.50
R2-70 /m²
Straight
R
180.00
Same as nr1
R2-88 /m²
Straight
R
191.70
Same as above
R3-05/m²
Straight
R
203.20
Same as nr1
R3-25 /m²
Straight
R
216.41
Same as nr1
R3-65 /m²
Straight
R
238.05
Same as nr1
R2-70/m²
R2-88/m²
R3-05/m²
R3-25/m²
R3-65/m²
180.00
R2-70/m²
R
180.00
R1-65/m²
R
180.00
R1-65/m²
R
180.00
R191-70
R2-88/m²
R
191.70
R1-76/m²
R
191.70
R1-76/m²
R
191.70
R1-65/m²
R1-76/m²
Renewal of plans within one yaer after lapsing (approval of plans lapses 12 months after approval)
Non existing
Minimum payable
Non existing
Renewal of plans within two yaers after lapsing (approval of plans lapses 12 months after approval)
Non existing
Minimum payable
Non existing
Preliminary Sketch plans
Non existing
Minimum payable
Government plans (Not to be approved/disapproved) only for information
Minimum payable
Local Athority plans. To be approved/disapproved as all other plans
Minimum payable
Low Cost housing plans. To be approved/disapproved as all other plans
Minimum payable
Application to commence construction of building prior to approval of plans (section 7(6) of NBR
Minimum payable
Application for consent to occupy before occupation certificate is issued. (Section 14[1A]
Minimum payable
Demolition Permit
Swimming pool
Minor building works (Section 13 of NBR)
Reroofing.
Fuel pumps, Fuel storage, Tanks and Gas installations
Installation of Masts:Ground based
Roof top based
Installation of Masts:Ground based
Roof top based
Freestanding walls/boundary
Occupation certificate
Building plans submitted in informal settlements
Sidewalk deposit/Guarantee:
Developed sidewalks
Landscaped sidewalks
Non existing
zero
zero
zero
zero
zero
zero
Non existing
Non existing
Non existing
Non existing
Non existing
Per application
Per item
Per item
Per application
Per application
Per application
Per application
Non existing
Non existing
Non existing
Non existing
Per application
10
Non existing
Non existing
Page 5 of 10
R
R
180.00 R
191.80
50% of
50% of
calculated fees. calculated fees.
R
90.00 R
95.85
100% of
100% of
calculated fees calculated fees
R
180.00 R
191.70
50% of
50% of
calculated fees. calculated fees.
R
90.00 R
95.85
zero
zero
zero
zero
zero
zero
zero
zero
zero
zero
zero
zero
R3-73/m²
R3-50/m²
426.00
R
400.00 R
R1-91/m²
R1-80/m²
426.00
R
400.00 R
426.00
R
400.00 R
R
200.00 R
213.00
R
200.00 R
213.00
R
200.00 R
213.00
R
650.00 R
692.25
R
650.00 R
692.25
R
650.00 R
692.25
R
650.00 R
692.25
R
650.00 R
692.25
R
200.00 R
213.00
R
80.00 R
85.20
R
180.00 R
191.70
R90.52/m²
R85-00/m²
R65-00/m²
R71-50/m²
R
203.20
R3-05/m²
R
203.20
R1-86/m²
R
201.28
R1-86/m²
R
203.20
R
R
R
R
R1.86/m²
R
203.31
50% of
calculated fees.
R
101.60
100% of
calculated fees
R
203.20
50% of
calculated fees.
R
101.60
zero
zero
zero
zero
R3-05/m²
R
203.20
R3-95/m²
R
451.56
R2-02/m²
R
451.56
R
451.56
R
225.78
R
225.78
R
225.78
R
726.86
R
733.79
R
733.79
R
733.79
R
733.79
R
225.78
R
90.31
R
203.20
R100.75/m²
R75.79/m²
216.41
R3-25/m²
216.41
R2-03/m²
214.36
R1.98/m²
216.41
R
R
R
R
R1.98/m²
R
216.52
50% of
calculated fees.
R
108.21
100% of
calculated fees
R
216.41
50% of
calculated fees.
R
108.21
zero
zero
zero
zero
R3-25/m²
R
216.41
R4-21/m²
R
480.91
R2-15/m²
R
480.91
R
480.91
R
240.46
R
240.46
R
240.46
R
774.11
R
781.48
R
781.48
R
781.48
R
781.48
R
240.46
R
96.18
R
216.41
R107.30/m²
R80.89/m²
238.05
R3-65/m²
238.05
R2-23/m²
235.80
R2-23/m²
238.05
R2-13/m²
R
238.18
50% of
calculated fees.
R
119.03
100% of
calculated fees
R
238.05
50% of
calculated fees.
R
119.03
zero
zero
zero
zero
R3-65/m²
R
238.05
R4-73/m²
R
529.00
R2-42/m²
R
529.00
R
529.00
R
264.50
R
264.50
R
264.50
R
851.52
R
859.63
R
859.63
R
859.63
R
859.63
R
264.50
R
105.80
R
238.05
R115.01/m²
R86.52/m²
BUILDING PLAN FEES (continue)
Sidewalk Rentals:-
0m² to 50m²
51m² to 100m²
101m² to 150m²
151m² to 200m²
201m² and more
2008/09
10%
increase
Per m² per week
Per m² per week
Per m² per week
Per m² per week
Per m² per week
Per m² per week
2009/10
10%
increase
2011/12
6%
increase
2010/11
6.5% increase
2012/13
6.5%
increase
2013/14
10%
increase
R
R
R
R
R
7.50
7.00
6.50
6.00
5.50
R
R
R
R
R
8.25
7.70
7.15
6.60
6.05
R
R
R
R
R
8.79
8.20
7.61
7.03
6.44
R
R
R
R
R
9.31
8.69
8.07
7.45
6.83
R
R
R
R
R
9.92
9.26
8.60
7.94
7.27
R
R
R
R
R
10.91
10.18
9.46
8.73
8.00
Billboards and other high impacting freestanding signs:Electronic billboards
R
Large billboards
R
Small billboard and tower structure
R
General signs and
Banner per 2 week period
Per pole
R
temporary signs
Flag on electrical pole per 2 week period
Registration fee
R
Registration fee, estate agent's temporary direction indicator
Per poster
R
Advertisement of sale of goods or livestock
Per poster
R
Auction poster
Per poster
R
Functions and events poster
Per political party R
Election poster
R
Signs on buildings, structures
Roof signs
Per sign
R
and premises
Development advertisement
Per sign
R
On-premises business advertising, egfreestanding
Per sign
R
Tower, bridge and pylon advertisement
Per sign
R
Advertisement at educational institution
Per sign
R
Tourism sign
Per sign
R
Service facility advertisement
Per sign
R
Municipal costs
Sign removal fee. (freestanding sign)
Per sign
R
Sign removal fee. (fixed sign)
Per sign
R
Poundage fee per week
R
2 500.00
5 500.00
5 500.00
300.00
200.00
3 000.00
30.00
30.00
30.00
5 000.00
550.00
550.00
550.00
550.00
550.00
550.00
550.00
350.00
550.00
350.00
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
2 750.00
6 050.00
6 050.00
330.00
220.00
3 300.00
33.00
33.00
33.00
5 500.00
605.00
605.00
605.00
605.00
605.00
605.00
605.00
385.00
605.00
385.00
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
2 928.75
6 443.25
6 443.25
351.45
234.30
3 514.50
35.15
35.15
35.15
5 857.50
644.33
644.33
644.33
644.33
644.33
644.33
644.33
410.03
644.33
410.03
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
3 104.48
6 829.85
6 829.85
372.54
248.36
3 725.37
37.25
37.25
37.25
6 208.95
682.98
682.98
682.98
682.98
682.98
682.98
682.98
434.63
682.98
434.63
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
3 306.27
7 273.78
7 273.78
396.75
264.50
3 967.52
39.68
39.68
39.68
6 612.53
727.38
727.38
727.38
727.38
727.38
727.38
727.38
462.88
727.38
462.88
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
3 636.89
8 001.16
8 001.16
436.43
290.95
4 364.27
43.64
43.64
43.64
7 273.78
800.12
800.12
800.12
800.12
800.12
800.12
800.12
509.16
800.12
509.16
Page 6 of 10
2009/10
10%
increase
APPLICATIONS FEES IN TERMS OF THE TOWN PANNING &TOWNSHIPS ORDINANCE NO 15 OF 1986
Section 96 ( Township Establishment)
Section 99 ( Phasing)
Section 96(4) Substantial change of Township
Section 100 (Consent to amendment of documents)
Section 88 (Extension of boundaries)
Section 125 (Amendment scheme/incorporation of Township into Town Planning Scheme
Section 56 (Amendment of Town Planning scheme)
Substantial Amendment of Section 56 or 125 applications
Section 62 &63 (including revoking of a provision in an approved scheme or revoking the scheme
Section 92(1)(a) (Subdivision of a Property)
Section 92(1)(b) (Consolidation of Properties)
Section 92(4) (a) &(b) (Amendment of subdivision /consolidation of plan or condition of
approval or cancellation of approval
Applications in terms of the Greater Tubatse Land Use Scheme 2006
Clause 21(special consent)-application fee
Clause 22 (Written consent)-application fee
Relaxation of Building Line(Penalty per enroachment)
Relaxation of parking requirements(Application Fee)
Relaxation of parking requirements(Penalty per parking bay)
Relaxation of parking requirements
Site development plan (SDP)
Site development plan (SDP) if application includes relaxation of building line
Application in ters of Division of Land Ordinance 20 of 1986
Section 6(4) Division of land (farm land)
Section 17 Amendment or deletion of a condition or conditions
Application Type
3 195.00
2 130.00
2 130.00
2 130.00
2 130.00
532.50
1 065.00
1 065.00
1 065.00
639.00
639.00
R
R
R
R
R
R
R
R
R
R
R
3 386.70
2 257.80
2 257.80
2 257.80
2 257.80
564.45
1 128.90
1 128.90
1 128.90
677.34
677.34
R
R
R
R
R
R
R
R
R
R
R
3 606.84
2 404.56
2 404.56
2 404.56
2 404.56
601.14
1 202.28
1 202.28
1 202.28
721.37
721.37
R
R
R
R
R
R
R
R
R
R
R
3 967.52
2 645.01
2 645.01
2 645.01
2 645.01
661.25
1 322.51
1 322.51
1 322.51
793.50
793.50
R
R
600.00
1 000.00
R
2 000.00
R
R
R
R
639.00
1 065.00
1 000.00
2 130.00
R
R
R
2 000.00
800.00
1 000.00
R
R
R
2 130.00
852.00
1 065.00
R
R
R
R
R
R
R
R
677.34
1 128.90
1 060.00
2 257.80
2 257.80
903.12
1 128.90
R
R
R
R
R
R
R
R
721.37
1 202.28
1 128.90
2 404.56
2 404.56
961.82
1 202.28
R
R
R
R
R
R
R
R
793.50
1 322.51
1 241.79
2 645.01
2 645.01
1 058.01
1 322.51
R
R
1 000.00 R
1 000.00 R
1 065.00 R
1 065.00 R
1 128.90
1 128.90
R
R
1 202.28
1 202.28
R
R
1 322.51
1 322.51
R
R
31.95 R
1 065.00 R
33.87
1 128.90
R
R
36.07
1 202.28
R
R
39.68
1 322.51
R
R
639.00 R
639.00 R
677.34
677.34
R
R
721.37
721.37
R
R
793.50
793.50
R
R
R
R
106.50
266.25
266.25
106.50
112.89
282.23
282.23
112.89
R
R
R
R
120.23
300.57
300.57
120.23
R
R
R
R
132.25
330.63
330.63
132.25
2008/09
10%
increase
R
R
R
R
Page 7 of 10
275.00
550.00
3.00
55.00
2013/14
10%
increase
R
R
R
R
R
R
R
R
R
R
R
Zoning Certificate
R
30.00
Notarial tie application
R
1 000.00
Application in terms of Local Government Ordinance No 17 of 1939
Section 67 (Street closure)(Permanent or partial)
R
600.00
Section 68 (Park Closure)(permanent or partial)
R
600.00
Application in terms of Proclamation R188of 1988
Permission to Occupy(PTO)
R
100.00
Business Rights
R
250.00
Transfer of Ownership(Business)
R
250.00
Other (Social Uses i.e. church,school,clinic etc)
R
100.00
Other Notes
No fee is payable for applications on Council Land only if Council is the developer or co-developer
No application fee is payable if application is linked to Government Tax Incentive Scheme
Application fees can only be refunded if processing has not been initiated. No partial refunds shall be considered
In all instances the responsibility is on the applicant to circulate the application to all external bodies
and to advertise the application as required by applicable statutes
IDP/ Budget
Municipal Code (By laws and policies)
Building plans
GIS Maps :
A0
A1
A2
A3
A4
2012/13
6.5%
increase
R
3 000.00
R
2 000.00
R
2 000.00
R
2 000.00
R
2 000.00
R
500.00
R
1 000.00
R
1 000.00
R
1 000.00
R
600.00
R
600.00
No cost
Other
TARRIFFS FOR DOCUMENTS
2011/12
6%
increase
2010/11
6.5% increase
2009/10
10%
increase
R
R
R
R
302.50
605.00
3.00
60.50
R
R
R
R
2011/12
6%
increase
2010/11
6.5% increase
R
R
R
R
322.16
644.33
3.20
64.43
R
R
R
R
R
R
R
R
R
341.49
682.98
3.39
68.30
100.00
80.00
60.00
30.00
15.00
2012/13
6.5%
increase
R
R
R
R
R
R
R
R
R
363.69
727.38
3.61
72.74
106.50
85.20
63.90
31.95
15.98
2013/14
10%
increase
R
R
R
R
R
R
R
R
R
400.06
800.12
3.97
80.01
117.15
93.72
70.29
35.15
17.57
ADMISSION OF GUILT
FOR THE CONTROL OF OUTDOOR ADVERTISING IN
THE GREATER TUBATSE MUNICIPALITY MUNICIPAL AREA
2008/09
10%
increase
FINES
Amenity and Decency.
Safety
Design and Construction
Maintenance
Position
Illumination
PART C
Electronic Billboards
Super Billboards
Large Billboards and custom made Billboard
Small Billboards and Tower Structures
Advertisements on Street Furniture
Banners
Flags
Suburban Advertisements
Estate Agent’s Boards
Temporary Direction Indicators for Show Houses
Advertisements for the Sale of Goods and Livestock
Auction Posters
Posters
Project Boards
Development Advertisements
Construction Site Advertisements
Street name Advertisements
Security Advertisements
Product Replicas and Three Dimensional Advertisements
Sky Sign
Roof Sign
Flat Sign
Projecting Sign
Balcony or under warning Advertisements
Signs Pointed on Building, Boundary Walls and_Roofs
Window Signs
Forecourt Advertisements
Residential or Community Advertisements
On-Premises Business Advertisements
Tower Bridge and Pylon Advertisements
Advertisements for Sponsored Road Traffic Projects
Advertising for Educational Institutions
Service Facility Advertisements
Tourism Sign
Aerial Advertisements
Trailer Advertising
Pamphlets
Prohibited Signs
2009/10
10%
increase
2011/12
6%
increase
2010/11
6.5% increase
2012/13
6.5%
increase
2013/14
10%
increase
R
R
R
R
R
R
1 000.00
1 000.00
1 000.00
1 000.00
1 000.00
1 000.00
R
R
R
R
R
R
1 100.00
1 100.00
1 100.00
1 100.00
1 100.00
1 100.00
R
R
R
R
R
R
1 171.50
1 171.50
1 171.50
1 171.50
1 171.50
1 171.50
R
R
R
R
R
R
1 241.79
1 241.79
1 241.79
1 241.79
1 241.79
1 241.79
R
R
R
R
R
R
1 322.51
1 322.51
1 322.51
1 322.51
1 322.51
1 322.51
R
R
R
R
R
R
1 454.76
1 454.76
1 454.76
1 454.76
1 454.76
1 454.76
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
1 500.00
1 500.00
1 500.00
1 500.00
1 000.00
500.00
500.00
1 000.00
500.00
500.00
500.00
500.00
500.00
500.00
500.00
500.00
500.00
500.00
1 000.00
1 500.00
1 500.00
1 500.00
1 000.00
500.00
500.00
500.00
500.00
500.00
1 500.00
1 500.00
1 000.00
1 000.00
1 500.00
500.00
1 500.00
1 500.00
500.00
1 000.00
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
1 650.00
1 650.00
1 650.00
1 650.00
1 100.00
550.00
550.00
1 100.00
550.00
550.00
550.00
550.00
550.00
550.00
550.00
550.00
550.00
550.00
1 100.00
1 650.00
1 650.00
1 650.00
1 100.00
550.00
550.00
550.00
550.00
550.00
1 650.00
1 650.00
1 100.00
1 100.00
1 650.00
550.00
1 650.00
1 650.00
550.00
1 100.00
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
1 757.25
1 757.25
1 757.25
1 757.25
1 171.50
585.75
585.75
1 171.50
585.75
585.75
585.75
585.75
585.75
585.75
585.75
585.75
585.75
585.75
1 171.50
1 757.25
1 757.25
1 757.25
1 171.50
585.75
585.75
585.75
585.75
585.75
1 757.25
1 757.25
1 171.50
1 171.50
1 757.25
585.75
1 757.25
1 757.25
585.75
1 171.50
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
1 862.69
1 862.69
1 862.69
1 862.69
1 241.79
620.90
620.90
1 241.79
620.90
620.90
620.90
620.90
620.90
620.90
620.90
620.90
620.90
620.90
1 241.79
1 862.69
1 862.69
1 862.69
1 241.79
620.90
620.90
620.90
620.90
620.90
1 862.69
1 862.69
1 241.79
1 241.79
1 862.69
620.90
1 862.69
1 862.69
620.90
1 241.79
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
1 983.76
1 983.76
1 983.76
1 983.76
1 322.51
661.25
661.25
1 322.51
661.25
661.25
661.25
661.25
661.25
661.25
661.25
661.25
661.25
661.25
1 322.51
1 983.76
1 983.76
1 983.76
1 322.51
661.25
661.25
661.25
661.25
661.25
1 983.76
1 983.76
1 322.51
1 322.51
1 983.76
661.25
1 983.76
1 983.76
661.25
1 322.51
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
2 182.14
2 182.14
2 182.14
2 182.14
1 454.76
727.38
727.38
1 454.76
727.38
727.38
727.38
727.38
727.38
727.38
727.38
727.38
727.38
727.38
1 454.76
2 182.14
2 182.14
2 182.14
1 454.76
727.38
727.38
727.38
727.38
727.38
2 182.14
2 182.14
1 454.76
1 454.76
2 182.14
727.38
2 182.14
2 182.14
727.38
1 454.76
Page 8 of 10
2008/09
10%
increase
FINES (continue)
Erecting of a structure without approved plan
Buildings not in the interest of good health or hygiene.
Buildings unsightly or objectionable.
Buildings be a nuisance to occupiers, of adjoining
OR CONDITION
neighbouring properties.
DEMOLITION AND
Owner fail to comply to written notice from
ALTERATION OF
Local Authority to comply with the provisions of this section.
CERTAIN BUILDINGS
If building is dilapidated or in a state of disrepair or show signs thereof;
If a building or land on which a building was or being erected is dangerous
or showing signs of becoming dangerous to life or property.
OCCUPY WITHOUT CERTIFICATE OF OCCUPANCY
2009/10
10%
increase
2011/12
6%
increase
2010/11
6.5% increase
APPROVAL OF PLANS
R
1 500.00 R
1 650.00 R
1 757.25 R
ERECTION OF BUILDING IN
CERTAIN CIRCUMSTANCES
SUBJECT TO PROHIBITION
R
500.00 R
550.00 R
585.75 R
R
1 000.00 R
1 100.00 R
R
R
1 500.00 R
500.00 R
R
HINDERS OR OBSTRUCT ANY AUTHORIZED PERSON TO ENTER A BUILDING OR LAND TO PERFORM DUTIES
INSTALLATIONS
1 862.69
2012/13
6.5%
increase
R
1 983.76
2013/14
10%
increase
R
2 182.14
620.90 R
661.25 R
727.38
1 171.50 R
1 241.79 R
1 322.51 R
1 454.76
1 650.00 R
550.00 R
1 757.25 R
585.75 R
1 862.69
620.90
R
R
1 983.76
661.25
R
R
2 182.14
727.38
300.00 R
330.00 R
351.45 R
372.54
R
396.75
R
436.43
R
300.00 R
330.00 R
351.45 R
372.54
R
396.75
R
436.43
R
500.00 R
550.00 R
585.75 R
620.90
R
661.25
R
727.38
R
500.00 R
550.00 R
585.75 R
620.90
R
661.25
R
727.38
R
R
250.00 R
800.00 R
275.00 R
880.00 R
292.88 R
937.20 R
310.45
993.43
R
R
330.63
1 058.01
R
R
363.69
1 163.81
R
500.00 R
550.00 R
585.75 R
620.90
R
661.25
R
727.38
R
500.00 R
550.00 R
585.75 R
620.90
R
661.25
R
727.38
R
300.00 R
330.00 R
351.45 R
372.54
R
396.75
R
436.43
R
500.00 R
550.00 R
585.75 R
620.90
R
661.25
R
727.38
R
R
R
R
620.90
310.45
1 241.79
620.90
R
R
R
R
661.25
330.63
1 322.51
661.25
R
R
R
R
727.38
363.69
1 454.76
727.38
Fail to ensure that any service installation provided in or
in connection with a building be maintained in a safe
/MAINTENANCE
and properly working condition.
AND OPERATION
CONTROL OF PLUMBERS AND PLUMBING WORK
Plumbing work done by untrained and unlicensed plumbers
NOTICE TO COMMENCE ERECTION OR DEMOLISHING
OF A BUILDING AND NOTICE OF INSPECTION
Fail to request for inspection.
Placing of concrete before inspection.
GENERAL ENFORCEMENT
Deviation from approved plan.
Use of building for other purposes than shown on
approved plan.
SWIMMING POOLS
PROTECTION OF THE PUBLIC
Fail to erect a fence hoarding or barricade to ensure
public safety at the building site.
CONTROL OF DUST
Fail to take precaution to limit noise and dust during
AND NOISE
excavations, alterations or construction.
Demolishing of buildings or constructing of a building.
Working during prohibited periods.
CUTTING INTO,LAYING OPEN
Fail to supply proof that work is in accordance with regulations.
AND DEMOLISH CERTAIN WORK Fail to cease construction in terms of this regulation.
WASTE MATERIAL ON SITE
Accumulating of excessive waste, rubbish or other debris
on site during or after construction.
CLEANING OF SITE
Fail to remove surplus material or debris from site, or public
Street after completion.
BUILDER’S SHEDS
Shed used or constructed in contravention of this regulation.
SANITARY FACILITIES
Fail to provide sanitary facilities for the workers.
COMPULSORY DRAINAGE BUILDINGS No suitable disposal of waterborne sewerage.
CONTROL OF OBJECTIONABLE Cause storm water to be discharge in sewer system.
DISCHARGE
Cause sewerage to be discharged in storm water system.
INDUSTRIAL EFFLUENT
Discharge of industrial effluent in sewer system
without Local Authority approval,
DISCONNECTION
Fail to seal drainage connection after disconnecting from drain.
UNAUTHORISED DRAINAGE WORK Interfere with or illegal connecting of sewer.
INSPECTION AND TESTING OF DRAINAGE
AND INSTALLATION
Fail to test drainage installation before put into use.
EXCAVATION
Fail to maintain excavation in safe condition and to take
precautionary measures.
Fail to obtain written authorisation of Local authority for
excavations for more than 3 metres deep.
FIRE PROTECTION
Insufficient fire extinguisher.
Fail to maintain and service fire extinguishers.
Obstruction of emergency escape routes.
Fail to comply to General requirement of Ti of this
regulation.
R
R
R
R
500.00
250.00
1 000.00
500.00
R
R
R
R
550.00
275.00
1 100.00
550.00
R
R
R
R
585.75
292.88
1 171.50
585.75
R
500.00 R
550.00 R
585.75 R
620.90
R
661.25
R
727.38
R
R
250.00 R
200.00 R
275.00 R
220.00 R
292.88 R
234.30 R
310.45
248.36
R
R
330.63
264.50
R
R
363.69
290.95
R
200.00 R
220.00 R
234.30 R
248.36
R
264.50
R
290.95
R
1 000.00 R
1 100.00 R
1 171.50 R
1 241.79
R
1 322.51
R
1 454.76
R
800.00 R
880.00 R
937.20 R
993.43
R
1 058.01
R
1 163.81
Page 9 of 10
Page 10 of 10
SEKHUKHUNE DISTRICT MUNICIPALITY
WATER AND SANITATION TARIFF POLICY
2012/13 Medium Term Revenue and Expenditure
Framework (MTREF) Policy Review
WATER AND SANITATION
TARIFF POLICY
FEBRUARY 2012
1
TARIFFS AND RATES POLICY
TABLE OF CONTENTS
SECTION
1.
2.
3.
4.
2
DESCRIPTION
PAGE
DEFINITIONS
3-4
INTRODUCTION AND OBJECTIVE
5-6
TARIFF POLICY
7-28
BY-LAWS
30
1.
DEFINITIONS
In this policy, unless the context otherwise indicates: “Agreement” means the contractual relationship between the Municipality or an
authorised agent and a consumer;
“Authorised agent” means  Any person authorised by the Municipality to perform any act, function or duty in
terms of, or exercise any power under this policy or
 Any person to whom the Municipality has delegated the performance of certain
rights, duties and obligations in respect of providing revenue services; and /or
 Any person appointed by the Municipality in terms of a written contract as a service
provider to provide revenue services to customers on its behalf, to the extent
authorised in such contract;
“Domestic purposes”, in relation to the supply of water, means water supplied for
drinking, ablution and culinary purposes to premises used predominantly for residential
purposes;
“Dwelling unit” means an interconnected suite of rooms, including a kitchen or scullery,
designed for occupation by a single family, irrespective of whether the dwelling unit is a
single building or forms part of a building containing two or more dwelling units;
“Flat” means a suite of rooms forming a complete unit exclusively used as a residence
and contained in a building consisting of two such dwelling-units or more, excluding a
hotel, boarding and lodging undertaking and place of instruction.
“Home for the aged, retirement centre or home for the disabled” means dwelling-units
occupied exclusively by the aged or disabled, excluding a hotel, boarding and lodging
undertaking and place of instruction.
“Household” means a traditional family unit consisting of persons related in some way;
“Industrial purposes”, in relation to the supply of water, means water supplied to any
premises, which constitutes a factory, as defined in the General Administrative
Regulations made under the Occupational Health and Safety Act, 1993 (Act 85 of 1993);
“Low cost housing” the erection of these residential dwellings has been financed
exclusively by means of the subsidy package in terms of the National Housing Subsidy
Scheme;
“Occupier” includes any person in actual occupation of the land or premises without
regard to the title under which he occupies it and, in the case of premises sub-divided
and let to lodgers or various tenants, shall include the person receiving the rent payable
by the lodgers or tenants whether for his own account or as an agent for any person
entitled thereto or interested therein;
“Parks” means a public area where no access is charged and no business is run from.
3
“Person” means any natural person, local government body, a company or close
corporation incorporated under any law, a body of persons whether incorporated or
not, a statutory body, public utility body, voluntary association or trust;
“Poor household” means a domestic user who qualifies, together with his or her
dependents, as an indigent person in terms of the Council’s Indigent Policy.
“Premises” means any piece of land, the external surface boundaries of which are
delineated on:
 a general plan or diagram registered in terms of the Land Survey Act, 1927 (Act No. 9
of 1927), or in terms of the Deeds Registries Act 1937, (Act No. 47 of 1937);
 a sectional plan registered in terms of the Sectional Titles Act, 1986 (Act No. 95 of
1986);
 a register held by a tribal authority or in accordance with a sworn affidavit made by a
tribal authority;
“Account” means any account rendered for municipal services provided;
“Actual consumption” means the consumption measured, of any consumer;
“Applicable tariff” means the rate, charge, tariff, flat rate, or subsidy determined by the
Municipal Council;
“Approved” means approved by the Municipality or its authorised agent in writing;
“Average consumption” means a consumer's estimated average consumption of a
municipal service during a specific period, which is calculated by dividing the consumer's
total measured consumption of that municipal service for the preceding four months by
four;
“Basic water supply” means the minimum standard of water supply services necessary
for the reliable supply of water to households to support life and personal hygiene,
prescribed in terms of the Act under regulation 3 of Government Notice R509 of 8 June
2001, as amended from time to time, or any substitution for that regulation;
“Connection” means the point at which a consumer is able to access municipal services;
“Connection pipe” means a pipe owned by the Municipality, which is installed by them
for the purpose of conveying water from a main to a water installation and includes a
“communication pipe” referred to in SABS Code 0252 Part I;
“Consumer” means:
(a) Any person who occupies premises to whom and in respect of which premises the
Municipality Has agreed to provide water services;
 Is actually providing water services;
 Has entered into an agreement with the Municipality or its agent for the
provision of water services on any premises;
4
(b) The owner or tenant of any premises to which the Municipality is providing water
services;
(c) Where water services are provided through a single connection to a number of
accommodation units or consumers or occupiers, means the person to whom the
Municipality agreed to provide such water services; and
(d) Any end-user who receives water services from the Municipality or other water
services institution.
“Container” means all types of containers owned by the Municipality including, plastic
bags and bulk containers;
“Determined” means determined by the Municipality from time to time;
“Emergency situation” means any situation that if allowed to continue poses a
risk or potential risk to the financial viability or sustainability of the Municipality or a
specific municipal service;
“Meter” means a water meter as defined in the regulations made under the Trade
Metrology Act, 1973 (Act 77 of 1973), or, in the case of a water meter of a size greater
than 100 mm, a device which measures the quantity of water passing through it;
“Sewage” means waste water, industrial and commercial effluent, standard domestic
effluent and other liquid waste, either separately or in combination, but does not
include storm water;
“Sewage disposal system” means a structure, pipe, valve, pump, meter or other
appurtenance used in the conveyance of sewage through the sewer reticulation system
and the treatment thereof at a sewage treatment plant under the control of the
Municipality and which may be used by it in connection with the disposal of sewage;
“Sewer” means any pipe or conduit which is the property of or is vested in the
Municipality and which may be used or is intended for the conveyance of sewage from
the connecting sewer but does not include a drain as defined; and "municipal sewer"
has a corresponding inclusive meaning;
“Municipality” means –
 the Sekhukhune District Municipality or;
 the Municipal Manager of the Sekhukhune District Municipality in respect of the
performance of any action or exercise of any right, duty, obligation or function in
terms of this policy;
 an authorised agent of the Sekhukhune District Municipality;
“Municipal Council” means the Municipal Council as referred to in section 157(1) of the
Constitution, 1996 (Act No. 108 of 1996);
“Municipal Manager” means the person appointed by the Municipal Council as the
Municipal Manager of the Municipality in terms of section 82 of the Local Government
Municipal Structures Act, 1998 (Act No.117 of 1998) and includes any person –
 acting in such position; and
 to whom the Municipal Manager has delegated a power, function or duty in respect
of such a delegated power, function or duty;
5
“Municipal services” means for purposes of this policy, services provided by the
Municipality, including refuse removal, water supply, sanitation, electricity services and
rates or any one of the above;
“Public notice” means publication in an appropriate medium that may include one or
more of the following –
 publication of a notice, in the official languages determined by the Municipal
Council, –
(i.)
in the local newspaper or newspapers in the area of the Municipality; or
(ii.)
in the newspaper or newspapers circulating in the area of the Municipality
determined by the municipal council as a newspaper of record; or
(iii.)
by means of radio broadcasts covering the area of the Municipality; or
 displaying a notice at appropriate offices and pay-points of the Municipality; or
 communication with customers through public meetings and ward committee
meetings;
6
2.
INTRODUCTION AND OBJECTIVE
In order to give effect to the provisions of the Constitution, the Municipality
must give priority to the basic needs of the local community, to promote the
development of the local community and to ensure that all members of the local
community have access to at least the minimum level of basic municipal
services.
The services provided by the Municipality must be:
 Equitable and accessible;
 Provided in a manner conducive to the prudent, economic, efficient and
effective use of available resources and the improvement of standards of
quality over time;
 Financially sustainable;
 Environmentally sustainable; and
 Regularly reviewed with a view to the upgrading, extension and improvement
of services
Various statutes enable authorities rendering certain services to impose tariffs. To
ensure that the cost of services rendered is recovered as far as possible, tariffs have to
be revised on an annual basis.
This policy has been compiled to address tariffs for services and comply with the
requirements and guidelines as set by following acts and other documents:
 SALGA – Local Government Financial Best Practise Manual
 The Constitution of the Republic of South Africa, 1996, Act 108 of 1996
 The Municipal Systems Act, Act 32 of 2000
 The Municipality’s Indigent Policy
 Fire Brigade Service Act, Act 94 of 1987
 Local Government Transaction Act, 1993, S10G (7)
 Municipal Finance Management Act, Act No. 56 of 2003
 National Environmental Management Act, Act No. 197 of 1998
 Property Rates Act, Act No. 6 of 2004
7
3.
PURPOSE OF THE POLICY

to set clear guidelines in the identification of responsibility for the setting and
implementation of a tariff policy for the Municipality;

to set guidelines for the identification of different categories of users;

to set guidelines for the determination of tariffs for the different categories of
users and services rendered.
The policy will further lay down the broad principles, which will result in the
adoption of a By-Law for the implementation and enforcement of the Tariff
Policy.
Service tariffs imposed by the Municipality shall be viewed as user charges and
shall not be viewed as taxes.
4.
TARIFF POLICY
4.1
SCOPE OF THE POLICY
4.1.1 The policy is applicable to water and sanitation services provided by Sekhukhune
District Municipality.
4.1.2 This policy is also applicable to all sundry tariffs as provided for in the Schedule of
Tariffs of the municipality.
4.2
GENERAL
4.2.1 This policy has been compiled taking into account, where applicable the guidelines
set out in the Municipal Systems Act, Act No. 32 of 2000, section 74. In determining
the annual tariffs, Council shall at all times take due cognisance of the tariffs
applicable elsewhere in the economic region and of the impact which its own tariffs
may have on local economic development.
4.2.2
A Municipal Council must adopt and implement the tariff policy on the levying of fees for
municipal services provided by the Municipality itself or by way of service delivery
agreements, which complies with the provisions of this Act and with any other applicable
legislation.
4.2.3
The Municipality should ensure that users of municipal services are treated equally in the
application of tariffs and that tariffs are applied uniformly and fairly throughout the
Municipal area of jurisdiction;
4.2.4
Tariffs for all major services and sub-services should as far as possible recover the expenses
associated with the services concerned. The tariff individual users pay for services should
generally be in proportion to their use of that service, as well as the quality of the service
provided;
4.2.5
Poor households should have access to at least basic services through –
8
4.2.6
Tariffs that cover only operating and maintenance costs
4.2.7
Special tariffs or life line tariffs for low levels of use or consumption of services or for basic
levels of service, or;
4.2.8
Any other direct or indirect method of subsidisation of tariffs for poor households;
4.2.9
Tariffs should reflect the cost reasonably associated with rendering the service, including
capital, operating, maintenance, administration and replacement costs and interest charges;
4.2.10 Tariffs should be set at levels that facilitate the financial sustainability of the service, taking
into account subsidisation from sources other than the service concerned;
4.2.11 Provision may be made in appropriate circumstances for a surcharge on the tariff for a
service;
4.2.12 Provision may be made for the promotion of local economic development through special
tariffs for categories of commercial and industrial users;
4.2.13 The economical, efficient and effective use of resources, the recycling of waste and other
appropriate environmental objectives should be encouraged;
4.2.14 The Municipality should, as far as possible, ensure that the tariffs raised in respect of the
services offered further generate an operating surplus each financial year of at least 5% as
the Council of the Municipality may determine at the time that the annual operating budget
is approved. Such surpluses should be applied in relief of property rates and for the partial
financing of general services or for the future capital expansion of the service concerned, or
both. The modesty of such surplus shall prevent the service tariffs concerned from being
viewed as concealed taxes;
4.2.15 The Municipality should develop, approve and at least annually review an indigence support
programme for the municipal area. This programme should set out clearly the Municipality’s
cost recovery policy in respect of the tariffs which it levies on registered indigents and the
implications of such policy for the tariffs which it imposes on other users and consumers in
the Municipal region;
4.2.16 The Municipality may differentiate between different categories of users and consumers
with regard to the tariffs, which it levies. Such differentiation shall, however, at all times be
reasonable and be fully disclosed in each annual budget;
4.2.17 The Municipality’s tariff policy should be transparent and the extent to which there is crosssubsidisation between categories of consumers or users shall be evident to all consumers or
users of the service;
4.2.18 The Municipality undertakes to ensure that its tariffs shall be easily explainable and
understood by all consumers and users affected by the tariff policy concerned;
4.2.19 The Municipality undertakes to render its services cost effectively in order to ensure the best
possible cost of service delivery;
4.2.20 In adopting a two-part tariff structure, namely a fixed availability charge coupled with a
charge based on consumption, the Municipality believes that it is properly attending to the
9
demands which both future expansion and variable demand cycles and other fluctuations
will make on service delivery;
4.2.21 In the case of directly measurable services, like water, the Municipality shall properly meter
the consumption of such services and meters shall be read, wherever circumstances
reasonably permit, on a monthly basis. The charges levied on consumers shall be
proportionate to the quantity of the service they consume. Where meters could not be read
in a specific month, consumption will be based on the average consumption of the
preceding four months;
4.2.22 In addition, the Municipality shall levy monthly availability charges for the services
concerned and these charges shall be fixed for each type of property.
4.2.23 In considering the costing of its water, sanitation and sewerage services, the Municipality
shall take into consideration the high capital cost of establishing and expanding such services
and of the resultant high fixed cost, as opposed to variable cost of operating these services.
The Municipality therefore undertakes to plan the management expansion of the services
carefully, in order to ensure that both current and reasonable expected future demands are
adequately catered for and that demand levels which fluctuate significantly over shorter
periods are also met. This may mean that the services operate at less than full capacity at
various periods and the costs of such surplus capacity must also be covered in the tariffs that
are annually levied.
4.2.24 Equal services will be supplied to all the residents of the Sekhukhune District
Municipality once the necessary administrative procedures have been completed at
the Municipality’s offices and the necessary consumer deposits been paid. The
municipal services provided to residents and communities in the municipal area
should:
 Be within the municipality’s financial and administrative capacity;
 Be regularly reviewed with a view to upgrading, extension and improvement,
 Be provided in a manner that:
 Is fair and equitable to all its residents and communities,
 Ensures the highest quality service at the lowest cost and the most economical
use and allocation of available resources and
 Is financially and environmentally sustainable.
For this purpose the Municipal Council should adopt, maintain and implement a Tariff
Policy that complies with the provisions of the Municipal Systems Act.
4.3
CATEGORIES OF USERS
The following categories of user are covered by this policy:
(i) Residential – indigent
(ii) Residential – Non indigent
10
(iii) Commercial Buildings
(iv) Industrial buildings
(v) Public institutions (Schools, clinic, hospitals, government departments)
(vi) Churches
(vii) Sports fields and clubs
(viii) Mines
(ix) Farms
(x)
Residential RDP
(xi) Communal stand pipes
4.4
TARIFF FRAMEWORK AND STRUCTURES
In order to determine the tariffs, which should be charged for the rendering of services,
the Municipality shall identify all the costs of operation of the undertakings concerned,
including specifically the following:
 Cost of bulk purchases in the case of water
 Distribution costs
 Distribution losses in the case of water
 Depreciation expenses
 Maintenance of infrastructure and other fixed assets
 Administration and service costs, including:
 Service charges levied by other departments, such as finance, human resources
and legal services
 Reasonable general overheads, such as the costs associated with the office of the
Municipal Manager
 Adequate contributions to the provisions of bad debts and obsolescence of stock
 All other ordinary operating expenses associated with the service concerned
(note: the costs of the democratic process in the Municipality, shall form part of
the expenses to be financed from property rates and general revenues and shall
not be included in the costing of the major services of the Municipality)
 The intended surplus to be generated for the financial year, such surplus to be
applied:
11

As an appropriation to capital reserves; and/or

Generally in relief of rates and general services
 The cost of approved indigence relief measures
4.4.1 Water tariff
Tariffs will be based on a two-part tariff structure. The objective of this structure will be
to recover all costs plus a percentage for future development from the users of the
service.
The Municipality shall provide the first 6kl of water per month free of charge to
consumers who have registered as indigents in terms of the Municipality’s indigence
relief programme. The Municipality shall further consider relief in respect of tariffs for
sewerage and refuse removal for such registered indigents to the extent that the
Council deems such relief affordable in terms of each annual budget, but on the
understanding that such relief shall not be less than a discount of 50% on the monthly
amount billed for the service concerned.
Because water is a scarce national resource, the Municipality is committed to the
prudent conservation of such resources. The tariff levied for domestic consumption
shall be based on monthly consumption of more than 6kl but not more than 30kl, more
than 31kl but not more than 40kl, more than 41kl but not more than 50kl. Where the
infrastructure costs are being recovered as a major component of the Water tariff a
fixed billing for consumption may be implemented for all consumers. Tariffs for nondomestic consumption shall be based on a single charge per kl consumed, irrespective
of the volume of consumption concerned.
The categories of water consumption as set out below shall be charged at the
applicable tariffs, as approved by the Council in each annual budget. Tariff adjustments
shall be effective from 1 July of each year.
Categories of consumption and charges shall be:
 All domestic water consumers registered as indigents with the Municipality shall
receive the first 6kl of water consumed of each month free of charge. Thereafter a
stepped tariff per kl as determined by the Council from time to time shall be
applicable on metered water consumption.
 All domestic consumers shall be charged for actual water consumption at a stepped
tariff per kl as determined by the Council from time to time. Where the
infrastructure costs are being recovered as a major component of the Water tariff a
fixed billing for consumption may be implemented for all consumers.
 The tariff applicable to domestic consumption of water shall not exceed 80% per kl
of the tariff applicable to other consumers. All other consumers, including
businesses, industries and institutional consumers, shall pay the same single tariff
per kl, irrespective of the volume of water consumed.
 A basic charge per water meter, as determined by the Council from time to time,
shall be charged on all water consumers, except registered indigents and consumers
using prepaid meters.
 The local Municipality’ departmental water consumption shall be charged at cost.
12
 Fixed tariff
To recover all fixed costs. This include permanent water infrastructure and its
maintenance.
 Variable tariff:
To recover all costs on all other expenses not recovered by the fixed tariff. It
will be based on the consumption of the users.
 Bulk water supply to other local Governments
A quantity charge for water supplied since the previous meter reading according to
the applicable Lepelle Water Board tariff including the Water Research Fund levy,
plus 10% administrative charge or as per agreement.
 Pre-paid water meters
Tariffs for pre-paid meters shall be the same as the ordinary consumption tariffs
levied on the category of consumer concerned, but no availability charge shall be
levied on properties where pre-paid meters have been installed. The distinction is
made in recognition to the financial advantages which pre-paid entails for the
service in question.
 Tariff for unauthorised water consumption
Amount payable for water consumption obtained through illegal water
consumption. A once-off levy is payable, after which the connection will be
formalised. The levy will be based on the diameter of the connection.
Spot fines may be imposed in terms of the Water-supply By-laws, for
unauthorised connections or damage to the water-supply system.
 Charges for connecting the water supply
Fees are payable for supplying and laying connecting pipes and for the
installation of water meters, not more than 10 m from the nearest
connection point. These fees are based on the size of the meters.
 Discontinuation or restriction of the water service owing to the failure to
pay
The Municipality reserves the right to discontinue or restrict the supply of
water services where consumers or users fail to pay their monthly charges.
 Movable water meters
Construction Connections
13
The applicant must apply in writing to the Water and Sanitation Division and make it
clear for what purpose and for how long the meter is required, following which the
Water and Sanitation Division may approve or reject the application. The applicant
must undertake, on approval of his or her application, to enter into an agreement in
respect of the use of the water meter. The Chief Financial Officer will also levy a
consumer deposit, which will be refunded at the end of the period for which the
meter was requested.

Contribution charge
A contribution charge may be levied where a new pipeline is requested and the
Municipality does not have the infrastructure where the new pipeline will be situated.
This will be imposed as part of the water consumption or water fixed fee recovery
tariffs and will be reviewed annually.
Refer to Annexure A, section A for the approved tariff structure
4.4.2
Sanitation tariff
The categories of sanitation users as set out below shall be charged per month at the
applicable tariff as approved by the council in each annual budget. Tariff adjustments
will be effective from 1 July of each year.
Categories of usage and charges shall be:
 A fixed monthly charge based on the costs of the service shall be charged for
domestic users. Registered indigents may receive such discount on this charge as the
Council deems affordable when approving each annual budget, but on the
understanding that such discount shall not be less than 50% of the monthly amount
billed for this service
 A fixed monthly charge based on the cost of the service per sewer point/toilet shall
be charged to the Municipality’s departments equal to the lowest tariff
 An effluent fee shall further be payable by factories and other industrial users,
where the wastewater emanating from such users requires special purification
measures by the Municipality. Such fees shall be based on the toxic content of the
wastewater concerned and the costs of the purification
 Blockage removal tariff for the Municipality - In areas where the municipality’s
sanitation infrastructure and capacity allow it, a service is provided for removing
blockages from private sewers without affecting the status quo, at the cost of the
owner of the property. These charges will be based on a fixed tariff as well as a callout charge.
Refer to Annexure A, section D for the approved tariff structure
4.4.3
Sundry charges
Users shall be charged, as set out below, at the applicable tariff as approved by Council
in each annual budget. Tariff adjustments will be effective from 1 July each year.
All sundry tariffs shall be standardised within the Municipal region.
14
All sundry tariffs, when deemed appropriate by Council, will be subsidised by property
rates and general revenues, particularly when the tariffs will prove uneconomical when
charged to cover the cost of the service concerned, or when the cost cannot accurately
be determined, or when the tariff is designed purely to regulate rather than finance the
use of the particular service or amenity.
All sundry tariffs over which the Municipality has full control and which are not directly
related to the cost of a particular service, shall be adjusted annually to be at least in line
with the prevailing consumer price index, unless there are compelling reasons why such
adjustment should not be affected.
Fees will be charged for the following sundry services supplied by the Municipality to
consumers:
 Unpaid debit orders (per account)
 Supply of information (faxes) per page
 Supply of information (statements)
 Monthly account
 Furnishing of valuation certificates
 Final meter reading levy
 Photostat copies and fees
 Penalty and other charges imposed in terms of the approved policy on credit control
and debt collection
 Penalty charges for the submission of dishonoured, post-dated or otherwise
unacceptable cheques
Refer to Annexure A, section I for the approved tariff structure
4.
By-Laws
The Municipal Council should adopt by-laws, according to Section 75 of the Municipal
Systems Act No. 32 of 2000, to give effect to its Tariff Policy, its implementation and
enforcement. By-laws may differentiate between different categories of users, debtors,
service providers, services, service standards and geographical areas, as long as the
differentiation does not amount to unfair discrimination.
CERTIFICATE OF ENDORSEMENT:
The Agreement to this Policy shall come into effect on the date of endorsement and shall
cease only in the event where such changes/variations has been reduced to writing and
15
been signed by the Accounting Officer. Unless in the event where any changes in any
applicable Act, Legislation has jurisdiction to supersede.
____________________________
For and on behalf of Municipality
________________________
As witness for Municipality
____________________________
Date
_________________________
Date
16
WATER AND SANITATION (SEWER) TARIFFS 2012/13
2011/12
WATER
2012/13
2013/14
2014/15
AREA OF SUPPLY GREATER TUBATSE LOCAL MUNICIPALITY
1. Water Consumption
Rebates
Indigent Persons
Residential
Schools
Churches
Government Institutions
Business Area
Tankers
Praktiseer
GA Mapodile
Fixed p.m
Basic Availability Charges
Basic Charge Part Time / Time Managed Supply (50% Discount)
0kl - 6kl
0kl - 6kl
7kl - 10kl
11kl - 30kl
31kl &above
Monthly basic charge for non residential
Fixed p.m
consumers metered
0kl - 6kl
7kl - 30kl
31kl & above
Per kl
0kl - 6kl
7kl - 10kl
11kl - 30kl
31kl &above
0kl - 6kl
7kl - 10kl
11kl - 30kl
31kl &above
R 22.00
R 11.00
R
R
R
R
R 27.50
R 13.75
Free
5.87
6.46
7.10
7.81
R
R
R
R
R
R
R
R
R
R
R
R
R 94.31
7.92
7.92
7.92
7.34
5.87
6.46
7.10
7.81
5.87
6.46
7.10
7.81
Free
R
R
R
R
6.35
7.05
8.47
9.32
R
R
R
R
R
R
R
R
R
R
R
R
R 89.82
9.32
10.25
11.28
7.05
6.35
7.05
8.47
9.32
6.35
7.05
8.47
9.32
R 33.00
R 16.50
R
R
R
R
R 41.44
R 20.72
Free
7.10
7.81
8.59
9.45
R
R
R
R
R
R
R
R
R
R
R
R
R 119.55
8.88
8.88
8.88
8.88
7.10
7.81
8.59
9.45
7.10
7.81
8.59
9.45
Free
R
R
R
R
6.34
7.10
7.81
8.59
R
R
R
R
R
R
R
R
R
R
R
R
R 105.63
8.32
8.73
8.73
8.07
6.34
7.10
7.81
8.59
6.34
7.10
7.81
8.59
AREA OF SUPPLY SEKHUKHUNE DISTRICT MUNICIPALITY DIRECT SUPPLY
2011/12
2012/13
2013/14
2014/15
SEWERAGE
Indigent People
Residential Stands
Residential Stands
Size of the stand
Residential 2 & 3 Stands
Business Stands
Business Stands
Government Prop.
Businesses and Industrial
Churches
Churches
Schools
Schools
Government and
Municipal
Other
See policy
0 to 500 sqm
501 and more
Per unit/flat
per stand
per stand
per unit /flat
Minimum charge <1000sqm
Greater than 1000sqm (per additional 1000sqm)per size of building
Minimum charge <1000sqm
Greater than 1000sqm (per additional 1000sqm)per size of building
Fix charge
Per student
Minimum charge stands <1000sqm
Greater than 1000sqm (per additional 1000sqm)
Domestic effluent by private tanker per kilolitre
Domestic effluent by drum of 210 litres
Trade effluent from inside the jurisction per tanker
Trade effluent from outside the jurisction per tanker
100 mm nominal diameter connection
150 mm nominal diameter connection
Inspection of connections
Free
Free
Free
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
2011/12
BULK CONTRIBUTIONS
(Residential)
Sewerage
Water
Total
Sewerage
(Business)
Water
Total
79.86
119.79
79.86
212.96
266.20
212.96
266.20
199.65
3.33
212.96
119.79
25.18
6.30
453.87
683.73
6 295.63
7 379.06
292.82
Prime plus 1%
R
R
R
R
R
R
R
R
10 285
10 285
12 100
32 670
20 570
20 570
24 200
65 340
Prime plus 1%
87.85
131.77
87.85
234.26
292.82
234.26
292.82
219.62
3.66
234.26
131.77
27.70
6.93
499.26
752.10
6 925.19
8 116.97
322.10
Prime plus 1%
2012/13
cost plus 10%
cost plus 10%
cost plus 10%
cost plus 10%
cost plus 10%
cost plus 10%
cost plus 10%
cost plus 10%
Prime plus 1%
96.63
131.77
87.85
234.26
292.82
234.26
292.82
219.62
3.66
234.26
131.77
27.70
7.62
499.26
752.11
6 925.19
8 116.97
322.10
Prime plus 1%
2013/14
cost plus 10%
cost plus 10%
cost plus 10%
cost plus 10%
cost plus 10%
cost plus 10%
cost plus 10%
cost plus 10%
Prime plus 1%
Free
R
R
106.29
R
144.95
R
96.63
R
R
257.68
R
322.10
R
257.68
R
322.10
R
R
241.58
R
R
4.03
R
257.68
R
144.95
R
30.47
R
7.62
R
549.18
R
827.32
R
7 617.71
R
8 928.67
R
354.31
Prime plus 1%
2014/15
cost plus 10%
cost plus 10%
cost plus 10%
cost plus 10%
cost plus 10%
cost plus 10%
cost plus 10%
cost plus 10%
Prime plus 1%
B. REGULATIONS
ARTICLE
2011/12
FINES
A15 INSTALLATIONS /MAINTENANCE AND OPERATION
Fail to ensure that any service installation
provided in or
in connection with a building be maintained in
a safe and
properly working condition.
A18 CONTROL OF PLUMBERS AND PLUMBING WORK
Plumbing work done by untrained and unlicensed plumbers
F11 SANITARY FACILITIES
Fail to provide sanitary facilities for the workers.
P1 COMPULSORY DRAINAGE
No suitable disposal of waterborne sewerage.
BUILDINGS
P3 CONTROL OF OBJECTIONCause storm water to be discharge in sewer system.
ABLE DISCHARGE
Cause sewerage to be discharged in storm water system.
P4 INDUSTRIAL EFFLUENT
P5 DISCONNECTION
P6 UNAUTHORISED DRAINAGE
WORK
P7 INSPECTION AND TESTING
OF DRAINAGE AND
INSTALLATION
2012/13
2013/14
2014/15
R
399.30 R
439.23 R
439.23 R
483.15
R
300.30 R
330.33 R
439.23 R
483.15
R
R
332.75 R
1 331.00 R
366.03 R
1 464.10 R
366.03 R
1 464.10 R
402.63
1 610.51
R
665.50 R
732.05 R
732.05 R
805.26
Discharge of industrial effluent in sewer system
without Local Authority approval,
Fail to seal drainage connection after disconnecting from drain.
R
665.50 R
732.05 R
732.05 R
805.26
R
332.75 R
366.03 R
366.03 R
402.63
Interfere with or illegal connecting of sewer.
R
266.20 R
292.82 R
292.82 R
322.10
Fail to test drainage installation before put into use.
R
266.20 R
292.82 R
292.82 R
322.10
2011/12
AREA OF SUPPLY EPHRAIM MOGALE LOCAL MUNICIPALITY
WATER
Fixed p.m
Basic Availability Charges
Rebates
All Metered Consumers
0-6kl consumed (if not registered as indigent in
terms of Council indigent policy)
2.1
Variable
NOTE: If registered as indigent in terms of
Council indigent policy, the first 6 kl is free, 7 –
2.2
Variable
10 kl
2.3
Variable
11 – 30 kl consumed
2.4
Variable
More than 30kl consumed
2.5
Variable
Residential Consumers pre-paid per kl
Communal stand pipes (pre-paid metered) 0 –
2.6
Variable
6kl
Communal stand pipes (pre-paid metered)
2.7
Variable
Rate above 6kl
Communal standpipes (above RDP supply)
2.8
Fixed p.m
monthly flat rate
Non residential consumers metered tariff
2.9
Variable
block 0 – 6kl
Non residential consumers metered tariff 7 –
2.10
Variable
30kl
Non residential consumers metered tariff Over
2.11
Variable
30kl
Monthly basic charge for non residential
2.12
Fixed p.m
consumers metered
All Non Metered Consumers
2.13
Fixed p.m
Flat – if not metered separately
2.14
Fixed p.m
Sectional titles – if not metered separately
Government supported educational
2.15
Fixed p.m
institutions - if not metered separately
Residential consumers unmetered (monthly
2.16
Fixed p.m
basis)
Charges for the supply of water, per meter, per month, whilst there is a restriction on the consumption of water
Normal tariffs plus an surcharge of 100%
above a limit as determined by the Council
from time to time. All charges for water
supplied shall be payable within the time
specified in the account rendered.
2.17
2012/13
2013/14
2014/15
2011/12
2012/13
2013/14
2014/15
R 65.88
R 32.94
R 32.94
R 16.47
R 36.87
R 18.44
R 41.44
R 20.72
R 2.80
R 4.06
R 5.68
R 7.10
R 3.62
R 4.15
R 4.72
R 5.20
R 4.47
R 4.91
R 5.40
R 5.94
R 6.25
R 6.88
R 7.57
R 8.32
R 7.81
R 8.59
R 9.45
R 10.39
R 5.18
R 5.87
R 6.46
R 7.10
R 5.53
R 6.46
R 7.10
R 7.81
R 31.75
R 7.10
R 7.81
R 8.59
R 3.22
R 4.96
R 6.69
R 8.88
R 4.02
R 5.45
R 6.00
R 6.60
R 5.04
R 5.63
R 6.30
R 7.04
R 87.10
R 96.68
R 107.32
R 119.55
R 58.90
R 58.90
R 65.71
R 65.71
R 73.30
R 73.30
R 81.78
R 81.78
R 58.90
R 65.71
R 73.30
R 81.78
R 58.90
R 65.71
R 73.30
R 81.78
100%
100%
100%
100%
2011/12
2012/13
2013/14
2014/15
SEWER SERVICES
3.1
3.1.1
(a)
(b)
(i)
(ii)
(a)
(b)
(c)
(iii)
(c)
(d)
(i)
MARBLE HALL - Charges payable that the
Council approves of the amendment for
sewer services.
Availability Charges - For every erf, stand or
premises which is or, in the opinion of the
Council can be connected to the sewer,
whether built upon or not:
Private dwelling house:
Stands which belongs to the Government:
Provincial Administration or Churches
SA Transport Services: Station Site
S A Transport Services Erf 148; SA Police Erf
147; Schools and Sport fields.
Up to 2000m² soil surface or part thereof
For the first additional 2000m² surface or part
thereof
For each subsequent 2000m² soil surface or
part thereof.
Other Government, provincial and church
stands
Business and flat stands:
Industrial Stands:
Up to 2000m² soil surface
For the first additional 2000m² soil surface
(ii)
(iii)
3.1.2
3.1.3
(a)
(b)
3.1.4
For each subsequent 2000m²soil surface or
part thereof
Additional Charges
All stands for each sewer point:
For the application of this item a sewer point
shall be deemed to be each and every
separate toilet, urinal trough for each 650mm
length or part thereof.
New Connections to Sewer
For each residential drainage installation
connected to the main sewer.
For each industrial drainage installation
connected to the main sewer.
Opening Blocked Drains
All stands for the opening of a blocked drain
per hour or part thereof.
Minimum Charges Payable per month or part thereof
R 74.05
R 74.05
R 81.46
R 89.60
R 2 888.48
R 2 888.48
R 3 177.32
R 3 495.06
R 163.13
R 163.13
R 179.45
R 197.39
R 77.68
R 77.68
R 85.45
R 94.00
R 58.26
R 58.26
R 64.09
R 70.50
R 84.16
R 323.68
R 84.16
R 323.68
R 92.57
R 356.04
R 101.83
R 391.65
R 158.09
R 173.90
R 191.29
R 210.42
R 84.70
R 84.70
R 93.17
R 102.49
R 55.66
R 55.66
R 61.23
R 67.35
R 8.54
R 8.54
R 9.40
R 10.34
R 543.77
R 543.77
R 598.15
R 657.97
R 815.66
R 815.66
R 897.23
R 986.95
R 135.94
R 135.94
R 149.54
R 164.49
2011/12
2012/13
2013/14
2014/15
SEWER SERVICES
continue
3.1.5
(a)
(b)
(c)
Vacuum Tank Removal Services
Services within the Marble Hall Town
Industrial sites per month: whether removal
takes place or not.
Mines per month, whether removal takes
place or not
Services outside Marble Hall Town @ R5 per
km plus per load
LEEUFONTEIN - Charges payable that the
Council approves of the amendment for
sewer services.
Private Dwelling
Government, Provincial Administration
Business Stands
Industrial Stands
Churches
Additional Charges
All stands for each sewer point (other than the
first sewer point). A sewer point shall be
deemed each and every separate toilet or
urinal trough (per 650mm length or part
thereof).
New Connections to Sewer
For each residential drainage installation
connected to the main sewer:
For each industrial drainage installation
connected to the main sewer:
Opening Blocked Drains
All stands for the opening of blocked drain per
hour or part thereof:
Vacuum Tank Removal Services
Services within Leeuwfontein:
Industrial sites per month: whether removal
takes place or not:
Mines per month, whether removal takes
place or not:
Private Dwellings, whether removal takes
place or not:
3.2.1
(a)
(b)
(c)
(d)
(e)
3.2.2
3.2.3
(a)
(b)
3.2.4
3.2.5
(a)
(b)
(c)
R 343.10
R 343.10
R 377.41
R 415.15
R 3 741.68
R 3 741.68
R 4 115.85
R 4 527.44
R 343.10
R 343.10
R 377.41
R 415.15
R 19.42
R 41.43
R 41.43
R 41.43
R 19.42
R 19.42
R 41.43
R 41.43
R 41.43
R 19.42
R 21.36
R 45.57
R 45.57
R 45.57
R 21.36
R 23.50
R 50.13
R 50.13
R 50.13
R 23.50
R 9.51
R 10.46
R 11.51
R 12.66
R 543.77
R 598.15
R 657.97
R 723.76
R 815.66
R 897.23
R 986.95
R 1 085.64
R 135.94
R 149.54
R 164.49
R 180.94
R 2 932.50
R 3 225.75
R 3 548.32
R 3 903.15
R 3 741.60
R 4 115.76
R 4 527.33
R 4 980.07
R 33.98
R 37.37
R 41.11
R 45.22
2011/12
2011/12
WATER
Rebates
ii)
iii)
iv)
Residential
Metered
Basic charge
Unit Charge
First 6 Units (Indigents)
First 6 Units (Non-Indigents)
7 to 10 Units
11 to 30 Units
Above 30 units
Unmetered
Monthly Flat Rate
Pre-Paid
Basic charge
Unit Charge
Communal Stand Pipes (Above RDP)
Monthly Flat Rate
Communal Stand Pipes (Pre-Paid)
First 6 Units
Above 30 units
Commercial/ Industry
Basic charge
First 6 Units
7 to 30 Units
Above 30 units
Departmental
Connection Fee
Water Tankers (per tank)
2013/14
2014/15
AREA OF SUPPLY ELIAS MOTSOALEDI LOCAL MUNICIPALITY
i)
2012/13
2012/13
R 65.91
R 32.96
Free
R
2013/14
R 32.96
R 16.48
Free
2014/15
R 36.91
R 18.45
Free
R 41.44
R 20.72
Free
R 2.78
R 3.58
R 4.12
R 4.54
R 4.11
R 4.53
R 4.98
R 5.48
R 5.55
R 6.11
R 6.72
R 7.39
R 7.10
R 7.81
R 8.59
R 9.44
R 58.50
R 65.47
R 73.26
R 81.99
-
R
-
R
-
R
-
R 5.25
R 5.87
R 6.46
R 7.10
R 31.99
R 35.80
R 40.06
R 44.84
R 5.22
R 5.57
R 5.87
R 6.46
R 6.46
R 7.10
R 7.10
R 7.81
R 86.43
R 3.20
R 3.99
R 5.01
R 5.17
R 44.16
R 242.66
R 96.11
R 4.48
R 4.48
R 4.48
R 4.48
R 48.71
R 267.65
R 108.60
R 6.05
R 6.05
R 6.05
R 6.05
R 53.73
R 295.22
R 119.55
R 8.88
R 8.88
R 8.88
R 8.88
R 59.26
R 325.63
2011/12
SEWERAGE
i)
Basic charge (Residential)
Basic charge (Commercial)
Sewerage Points
Residential
ii)
First two Points
There after per point
Commercial
Departmental
Other Sewerage Tariffs
New connections (Water/Sewerage)
As calculated by the Director Technical Services (Cost + 10%)
Issue of Council Documents/Information
Basic Fee of R30 plus photo copy fees as in paragraph (II) of Sundry Tariffs
iii)
IV)
V)
2012/13
2013/14
2014/15
2011/12
2012/13
2013/14
2014/15
R 36.61
R 70.59
R 41.48
R 78.95
R 47.00
R 88.30
R 53.26
R 98.75
R 5.84
R 5.84
R 23.30
R 5.50
R 6.55
R 6.55
R 26.14
R 6.17
R 7.35
R 7.35
R 29.34
R 6.92
R 8.25
R 8.25
R 32.92
R 7.76
2011/12
2011/12
Rebates
Residential
Metered
Basic charge Full Time Supply
Unit Charge
First 6 Units (Indigents)
First 6 Units (Non-Indigents)
7 to 10 Units
11 to 30 Units
Above 30 units
Unmetered
Monthly Flat Rate
Pre-Paid
Basic charge
Unit Charge
Communal Stand Pipes (Above RDP)
Monthly Flat Rate
Communal Stand Pipes (Pre-Paid)
First 6 Units
After First 6 Units
Above 30 units
Commercial/ Industry
Basic charge
First 6 Units
7 to 30 Units
Above 30 units
Departmental
Connection Fee
Water Tankers (per tank)
ii)
iii)
iv)
2013/14
2014/15
AREA OF SUPPLY SEKHUKHUNE DISTRICT MUNICIPALITY DIRECT
WATER
i)
2012/13
2012/13
R 68.50
R 34.25
Free
R
2013/14
R 34.00
R 17.00
Free
2014/15
R 37.40
R 18.70
Free
R 41.14
R 20.57
Free
R 2.89
R 3.72
R 4.29
R 4.87
R 5.87
R 6.46
R 7.10
R 7.81
R 6.46
R 7.10
R 7.81
R 8.59
R 7.10
R 7.81
R 8.59
R 9.45
R 60.79
R 66.87
R 73.56
R 80.91
-
R
-
R
-
R
-
R 5.46
R 5.87
R 6.46
R 7.10
R 33.25
R 36.58
R 40.23
R 44.26
R 0.00
R 5.42
R 5.79
R 0.00
R 5.87
R 6.46
R 0.00
R 6.46
R 7.10
R 0.00
R 7.10
R 7.81
R 89.82
R 3.33
R 4.15
R 5.23
R 5.20
R 44.44
R 244.20
R 98.80
R 7.34
R 7.34
R 7.34
R 7.34
R 48.88
R 268.62
R 108.68
R 8.07
R 8.07
R 8.07
R 8.07
R 53.77
R 295.48
R 119.55
R 8.88
R 8.88
R 8.88
R 8.88
R 59.15
R 325.03
2011/12
SEWERAGE
i)
First two Points
There after per point
Commercial
Departmental
Other Sewerage Tariffs
New connections (Water/Sewerage)
As calculated by the Director Technical Services (Cost + 10%)
Issue of Council Documents/Information
Basic Fee of R30 plus photo copy fees as in paragraph (II) of Sundry Tariffs
iii)
IV)
V)
2013/14
2014/15
2011/12
2012/13
2013/14
2014/15
Basic charge (Residential)
Basic charge (Commercial)
Sewerage Points
Residential
ii)
2012/13
R 39.07
R 73.26
R 42.98
R 80.59
R 47.27
R 88.64
R 52.00
R 97.51
R 6.11
R 6.11
R 24.36
R 5.74
R 6.72
R 6.72
R 26.80
R 6.31
R 7.39
R 7.39
R 29.48
R 6.95
R 8.13
R 8.13
R 32.42
R 7.64
2011/12
2012/13
2013/14
2014/15
1. DEPOSITS
The Director Finance determines the deposit as required from time to time.
Currently the minimum is as follows:
If the amount on the current account is below the indicated value the correction should be levied over a period of 12 months from 1 July 2012
R 732.05
R 805.26
R 885.78
R 974.36
Household
R 732.05
R 805.26
R 885.78
R 974.36
Flats
Small Businesses, Commercial and Industrial
Consumers (Below 100kl per month)
RDP - Water
RDP - Sanitation
R 732.05
R 220.00
R 110.00
R 805.26
R 242.00
R 121.00
R 885.78
R 266.20
R 133.10
R 974.36
R 292.82
R 146.41
Large Businesses, Mines, Industries and
Developments as per agreement when
connected or as adjusted - reviewed annually
on 1 July to twice average consumption cost
for the prior year plus increase for the year.
2. Other Water Tariffs
Illegal consumption
(Once of Levy)
Meter Connections
(households)
Pre paid Meters
Other Connections
Household excluded
Pipes 12mm to 40 mm
Pipes 50mm to 90 mm
Connections 20 mm
Connections 25 mm
House connections
40mm
50mm
80mm
100mm
More than 100mm
New water service applications
Water Disconnection/Restriction
Water Reconnection
Charges for Special Meter Reading
When a consumer requires his meter to be read by the Council at
Testing of Meters
If the municipality is requested by a consumer to test the accuracy
2011/12
2012/13
2013/14
2014/15
R 1 464.10
R 2 928.20
R 1 610.51
R 3 213.03
cost plus 10%
cost plus 10%
cost plus 10%
cost plus 10%
cost plus 10%
R 1 610.51
R 3 221.02
R 1 771.56
R 3 534.33
cost plus 10%
cost plus 10%
cost plus 10%
cost plus 10%
cost plus 10%
R 1 771.56
R 3 543.12
R 1 948.72
R 3 887.77
cost plus 10%
cost plus 10%
cost plus 10%
cost plus 10%
cost plus 10%
R 1 948.72
R 3 897.43
R 2 143.59
R 4 276.54
cost plus 10%
cost plus 10%
cost plus 10%
cost plus 10%
cost plus 10%
R 58.56
R 465.85
R 133.10
Prime plus 1%
R 194.21
R 349.51
R 64.42
R 512.44
R 146.41
Prime plus 1%
R 213.63
R 384.46
R 70.86
R 563.68
R 161.05
Prime plus 1%
R 234.99
R 422.91
R 77.94
R 620.05
R 177.16
Prime plus 1%
R 258.49
R 465.20
Fire Fighting (refer to tariffs as submitted by Emergency Services)
Data base registration
Tender documents(Hard copy or Soft copy)
From 200 000-1 000 000
From 1 000 001-5 000 000
From 5 000 001-10 000 000
From 10 000 001- 20 000 000
From 20 000 001- 50 000 000
From 50 000 001- 100 000 000
From 100 000 001+
Municipal Documents
FROM 250 PAGES +
Per soft copy(compact disk)
Municipal Health Services( Refer to environmental health by-laws)
PART XI ANNEXURES
R
100.00
R
250.00
R
350.00
R
500.00
R
750.00
R
1 000.00
R
5 000.00
R
10 000.00
R
R
100.00
50.00
ORGANISATION: SEKHUKHUNE DISTRICT MUNICIPALITY
UNIT
TARRIF
Item no
1
: Water and Sanitation
: Sundry Water Charges
Description
Deposit for water supply
Proposed Tariff Incl vat
2010/2011
One and month’s
estimated
2011/2012
2012/2013
2013/2014
2014/2015
2762.1
4562.47
7026.47
8692.31
Full cost
Full cost
Full cost
Full cost
3038.31
5018.71
7728.11
9561.54
Full cost
Full cost
Full cost
Full cost
3 342.14
5 520.59
8 502.03
10 517.70
Full cost
Full cost
Full cost
Full cost
3 676.36
6 072.65
9 352.23
11 569.46
Full cost
Full cost
Full cost
Full cost
Consumption for
consumers who own
premises and six month’s
estimated consumption
for consumers who are
tenants multiplied by the
appropriate
2
3
4
Connections of charge based on nominal size of
connections
(1)20 mm
(2)25 mm
(3)40 mm
(4)50 mm
(5)75 mm
(6)100 mm
(7)150 mm
(8)more than 150m
(9) Service charge in excess of 3om-for every 5m or part
thereof provided that in any Municipal Housing Scheme,
the connection fee may, at the discretion of the authorised
delegate be charged at full cost.
Cutting –off or restriction of water supply
2511
4147.7
6387.7
7902.1
Full Cost
Full Cost
Full Cost
Full Cost
15% surcharge
(1)due to no payment or payment irregularity, such
payment to be refunded subject to all monies outstanding
being paid on the same day as the disconnection and
provided supply has not been similarly disconnected during
the three previous three months.
93.5
102.85
113.13
124.45
136.89
(2) due to illegal reconnection of water supply
Semi-pressure connection
138.9
733.2
152.79
806.52
168.06
887.17
184.88
975.89
203.36
1 073.48
5
6
7
8
Restricted(stand pipe)connection
Reinstatement of water supply
(1)Subject to item 4(4) and 4(5),after cutting –off or water
restriction non payment of monies
(2) After disconnection at consumer’s request
(3)After cutting-off or restriction due to contravention of
water restriction notice
(4)After cutting –off due to non payment of monies due,
such monies having been paid on the same day as the
disconnection was effected provided that the supply has
not similarly disconnected during previous three months.
(5) After cutting-off due to non payment of monies due,the
water supply being reinstated on the day following that on
which payment is made.
Changes in size of matter at authorised delegates
discretion
Water availability .charge
(1) Each communication pipe
(2) Each mater
1349.4
1484.34
1632.77
1 796.05
1 975.66
369.7
406.67
447.33
492.07
541.28
420.3
462.33
508.56
559.42
615.36
463
509.3
560.23
616.25
677.88
NILL
NILL
NILL
NILL
NILL
NILL
NILL
NILL
NILL
NILL
NILL
NILL
NILL
NILL
NILL
NILL
NILL
NILL
NILL
NILL
NILL
9
Deposit for hydrant meter-per hour
NILL
NILL
NILL
NILL
NILL
10
Supervision of hydrant meter per hour or part thereof
399
438.9
482.79
531.07
584.18
11
12
Use hydrant meter-per hour
Testing of meter-per hour
(1)Class 2 and 4
(2)Class 12 and 16 and 35
(3)Class 55 and 100
(4)Class 200
(5)Over class 200
Approval of installation of work
(1) Single dwelling unit
(2) Multiple dwelling units and other installation
(3) Alterations to existing installations
(4) Alterations to existing installation
Extension of validity of approval of installation work per
year
NILL
NILL
NILL
NILL
NILL
246.9
678.1
704.3
917
271.59
745.91
774.73
1008.7
298.74
820.5
852.2
1109.57
328.62
902.55
937.42
1 220.53
361.49
992.81
1 031.17
1 342.58
302.2
NILL
NILL
NILL
NILL
NILL
NILL
NILL
NILL
NILL
NILL
30.4
33.44
36.78
40.46
44.51
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Permission for private persons to carry out installation
work
Registration contractor in GTLM
Renewal of contractor ‘s registration in GTLM
Registration of responsible plumber in GTLM
Renewal responsible plumber in GTLM
Replacements of certificates of registration in GTLM
Re-inspection after disinfection and testing.
Application of approval fittings
Renewal of approval fittings
Schedule of accepted pipes and water fittings.
Pressure Tests
(1)24 hour pressure recording
(2)7 day pressure recording
(3)Pressure and flow test
Replacement of hydrant seal
Testing of water from other sources
Change of meter outside normal working hours at
consumer’s request
Locating a consumer ‘s pipes and tracing leaks:
(1) During normal working hours
(2) Outside working hours at consumer’s request
Changing over existing 15/20/25mm connection to
consumer’s renewed piping
Resisting of fire hydrant:
(1) Distance no exceeding 2m
(2) Distance exceeding 2m(including the relocation of the
hydrant tee)
143.3
157.63
173.39
190.73
209.81
58.2
87.4
31.9
58.6
213.1
NILL
NILL
30.4
64.02
96.14
35.09
64.46
234.41
NILL
NILL
33.44
70.42
105.75
38.59
70.9
257.85
NILL
NILL
36.78
77.46
116.33
42.46
78
283.64
NILL
NILL
40.46
85.21
127.96
46.7
85.8
312
NILL
NILL
44.5
389.9
389.9
279.2
NILL
428.89
428.89
307.12
NILL
471.77
471.77
337.83
NILL
518.95
518.95
371.61
NILL
570.84
570.84
408.77
NILL
744.9
819.39
901.329
991.46
1 090.61
1157
1272.7
1399.97
1 539.97
1 693.96
547.8
602.58
662.838
729.12
802.04
3372.9
3710.19
4081.209
4 489.33
4 938.26
7513
8264.3
9090.73
9 999.80
10 999.78
Resisting of water meter
(1) Distance no exceeding 2m for connection size:
(a) 15.20 and 25 mm
32
(b)
(c)
(d)
(e)
40 and 50 mm
75 and 100 mm
150 mm
Over 150 mm
(2) Distance exceeding 2m
33
34
35
36
Repairing of water connection equal to or less than 25 mm
nominal diameter
Penalty for consumer piping not being in order for
connection to council water main on date requested
Replacement of damaged or stolen water meter
(1) Class 2
(2) Class 4
(3) Class 12
(4) Greater than Class 12
1 097.19
1 097.19
749.4
1043.5
2424.3
3844.1
Full cost
The tariff for a new
connection will apply
824.34
1147.85
2666.73
4228.51
Full cost
906.774
1262.635
2933.403
4651.361
Full cost
1 527.79
3 226.74
5 116.50
Full cost
1 527.79
3 226.74
5 116.50
Full cost
678.7
746.57
821.23
993.69
993.69
97.3
107.03
117.73
142.45
142.45
519.7
626.6
1,102.60
Full costs
571.67
689.26
1212.86
Full costs
628.84
758.19
1334.15
Full costs
691.72
917.41
1 614.32
Full costs
760.9
917.41
1 614.32
Full costs
576.6
1,318.10
634.26
1449.91
697.69
1594.9
844.2
1 933.46
844.2
1 933.46
Inspection ,rectification or replacement of an authorized
domestic water connection detected by GTLM or its Agent
(1) Semi Pressure
(2) Full Pressure
Request for GIS information
37
(1) AO- No backdrop (prints from GIS) per print
58.8
64.68
71.15
78.27
86.09
(2) A1 – No backdrop (prints from GIS) per print
34.7
38.17
41.99
45.49
50.03
(3) A2- – No backdrop (prints from GIS) per print
23.1
25.41
27.95
27.95
30.75
(4) A3– No backdrop (prints from GIS) per print
12.1
13.31
14.64
16.07
17.68
(5) A4– No backdrop (prints from GIS) per print
11
12.1
13.31
14.64
16.11
(6) AO-4 No backdrop (prints from GIS) per print
173.3
190.63
209.69
230.66
253.72
(7) A1-4 No backdrop (prints from GIS) per print
92.4
101.64
111.8
122.98
135.28
(8) A2 A1-4 No backdrop (prints from GIS) per print
70.4
77.44
85.18
93.7
103.07
(9) A3 A2 A1-4 No backdrop (prints from GIS) per print
40.5
44.55
49.01
53.91
59.3
(10)A4 A3 A2 A1-4 No backdrop (prints from GIS) per print
26.3
28.93
31.82
35
38.5
(11)A0 Copy of original per print
14.8
16.28
17.91
21.9
24.09
(12)A1 Copy of original per print
(13)A2 A1 Copy of original per print
(14)Photocopies A4 per print
(15)Photocopies A3 per print
(16)Microfilm to paper copies per copy
(17)Paper to microcopies per copy
(18)Standard drawing per set
(19)Standard drawing per sheet
(20)Standard drawing on CD (if available)
(21)Blank CD (Digital Data Request)
(22)0-999 Kilobytes (Digital Data Request)
(23)1-5 Megs per Meg (Digital Data Request)
(24)More than 5 Megs per Meg (Digital Data Request)
(25)A4 Street Map Book(Unicity)-per copy
(26)A3 Water Reticulation Map Book –per copy per unit(9
Units in existence)
7.4
3.8
1.6
2.7
36.8
6.9
55.1
2.7
58.8
10.5
63.6
254.2
115.5
273
8.14
4.18
1.76
2.97
40.48
7.59
60.61
2.97
64.68
11.55
69.96
279.62
127.05
300.3
8.95
4.6
1.94
3.27
44.53
8.35
66.67
3.27
71.15
12.71
76.96
307.58
139.76
330.33
9.85
5.06
2.13
3.6
48.98
9.19
73.34
3.6
78.27
13.98
84.66
338.34
153.74
363.36
10.83
5.57
2.35
3.96
53.88
10.1
80.67
3.96
86.09
15.38
93.12
372.17
169.11
399.7
38
39
40
41
42
Charge for the installation of a class 2 water meter in a
water installation
(1) 20mm
(2) 25mm
Monthly distribution charge payable per sub meter
Repairing leaks in water installations on the property or
domestic customers where the account is more than six
days in arrears and where the average daily water
consumption exceeds two kilolitres per day as a result of
water leaks.
Provision /Printing /Posting of copy water accounts per
account
For any other service where tariff is not spend
PAYMENT DETAILS
ALL PAYMENTS CAN BE MADE AT THE FOLLOWING
BANK
: ABSA
ACCOUNT NO
: 4053013501
BRACH
: GROBLERSDAL
BRANCH CODE
: 334147
NB: PLEASE QUOTE ACC NO
OR
GREATER SEKHUKHUNE DISTRICT MUNICIPALITY
3 WEST STREET
GROBLERSDAL
470
522.7
574.97
632.47
574.97
632.47
675.3
7.6
278
742.83
8.36
305.8
817.11
9.2
336.38
742.83
8.36
305.8
817.11
9.2
336.38
5.3
5.83
6.41
5.83
6.41
Full cost
Full cost
Full cost
Full cost
Full cost
GREATER TUBATSE
LOCAL MUNICIPALITY
PROPERTY RATES POLICY
FOR IMPLEMENTATION ON 1 JULY 2012
GREATER TUBATSE LOCAL MUNICIPALITY
PROPERTY RATES POLICY - FINAL
(25 MAY 2009)
INDEX
Page
A.
INTERPRETATION
2
1.
8
2.
LEGAL FRAMEWORK
8
3.
IMPOSITION OF PROPERTY RATES
9
4.
CATEGORIES OF RATEABLE PROPERTIES
10
5.
CATEGORIES OF OWNERS
12
6.
EXEMPTIONS AND IMPERMISSIBLE RATES
13
7.
REDUCTIONS
15
8.
REBATES
16
9.
PHASING IN OF RATES
21
10.
SPECIAL RATING AREAS
21
11.
PAYMENT OF RATES
23
12.
ACCOUNTS TO BE FURNISHED
24
13.
GENERAL VALUATION OF RATEABLE PROPERTY
24
14.
LIABILITIES FOR AND RECOVERY OF RATES IN ARREAS
25
15.
CORRECTION OF ERRORS AND OMISSIONS
25
16.
DIFFERENTIAL RATES
26
17.
COST OF EXEMPTIONS, REBATES, REDUCTIONS & PHASE-IN
26
18.
LOCAL, SOCIAL AND ECONOMIC DEVELOPMENT
26
19.
REGISTER OF PROPERTIES
27
20.
COMMUNITY PARTICIPATION
27
21.
NOTIFICATION OF RATES
28
22.
BY-LAWS TO GIVE EFFECT TO THE RATES POLICY
28
23.
REGULAR REVIEW PROCESSES
28
24.
ENFORCEMENT/IMPLEMENTATION
28
1
(25 MAY 2008)
GREATER TUBATSE MUNICIPALITY
PROPERTY RATES POLICY
A. INTERPRETATION
Definitions
“Act”, means the Local Government: Municipal Property Rates Act, 2004 (Act 6 of 2004;
“Agent”, in relation to the owner of a property(a) to receive rental or other payments in respect of the property on behalf of the owner; or
(b) to make payments in respect of the property on behalf of the owner;
“Agricultural purpose”, in relation to the use of a property, includes the use of a property for
the purpose of eco-tourism or for the trading in or hunting of game;
“Annually”, means once every financial year;
“Category” –
(a) in relation to property, means a category of properties determined in terms of section 8
of the Act;
(b) in relation to owners of properties, means a category of owners determined in terms of
section 15 (2) of the Act;
“Category of properties”, means a category of properties determined according to the
zoning, use of the property, permitted use of the property, or the geographical area in which
the property is situated;
“Contiguous pieces of land held and occupied by one owner”, means where two or more
continuous pieces of land are held and occupied by one owner and together comprise an
area the extent of which is at least 5 hectares;
“Council” means the highest legislative body of the Greater Tubatse Local Municipality as
referred to in section 157 (1) of the Constitution and section 18 (3) of the Local Government:
Municipal Structures Act, 1998 (Act 117 of 1998);
“Economic services”, means services for which the tariffs are fixed to recover the full costs
of the service, like refuse and sewer services;
“Effective date”(a) in relation to a valuation roll, means the date on which the valuation roll takes effect, in
terms of section 32 (1) of the Act, or
(b) in relation to a supplementary valuation roll, means the date on which a supplementary
valuation roll takes effect in terms of section 78 (b) of the Act;
2
(25 MAY 2008)
“Exemption”, in relation to the payment of a rate, means an exemption from the payment of
rates, granted by a municipality in terms of section 15;
“Financial year”, means the period starting from 1 July in a year to 30 June the next year;
“Illegal use”, means the use of a property in a manner that is inconsistent with or in
contravention of the permitted use of the property;
“Improvement”, means any building or structure on or under a property, but excludes (a) a structure constructed solely for the purpose of rendering the property suitable for the
erection of any immovable structure thereon; and
(b) any building, structure or equipment or machinery referred to in section 46(3) of the
Municipal Property Rates Act;
“Local community”, in relation to a municipality (a) Means that body of persons comprising(i) the residents of the municipality;
(ii) the ratepayers of the municipality;
(iii) any civic
organizations
and
non-governmental,
private
sector
or
labour
organizations or bodies which are involved in local affairs within the municipality;
and
(iv) visitors and other people residing outside the municipality who, because of their
presence in the municipality, make use of services or facilities provided by the
municipality;
(b) Includes, more specifically, the poor and other disadvantaged sections of such body of
persons;
“Local municipality”, means a municipality that shares municipal executive and legislative
authority in its area with a district municipality within whose area it falls, and which is
described in section 155(1) of the Constitution as a category B municipality;
“Market value”, in relation to a property, means the amount a property would have realized if
sold on the date of valuation in the open market by a willing seller to a willing buyer;
“MEC for Local Government”, means the member of the Executive Council of the Limpopo
Provincial Government who is responsible for local government in the Limpopo Province;
“Multiple purposes”, in relation to a property, means the use of a property for more than
one purpose;
“Municipal Manager”, means a person appointed in terms of section 82 of the Municipal
Structures Act, 1998;
3
(25 MAY 2008)
“Municipality”, means the Greater Tubatse Local Municipality;
“Municipal Finance Management Act” means the Local Government: Municipal Finance
Management Act, 2003 (Act No. 56 of 2003);
“Municipal valuer” or “valuer of a municipality” means a person designated as a
municipal valuer in terms of section 33(1) of the Act;
“Non-urban land” means land that is not situated in a proclaimed township, but that is used
for residential or agricultural purposes or is not in use. Where the whole of a portion of nonurban land is used for business, industrial or mining purposes the market value of such land
or portion of it must be recorded separately in the valuation roll and rated according to the
applicable category;
“Occupier”, in relation to a property, means a person in actual occupation of a property,
whether or not that person has a right to occupy the property;
“Owner”(a) in relation to a property, means a person in whose name ownership of the property is
registered;
(b) in relation to a right means a person in whose name the right is registered;
(c) in relation to a land tenure right means a person in whose name the right is registered;
or to whom it was granted in terms of legislation; or
(d) in relation to public service infrastructure, means the organ of state which owns or
controls that public service infrastructure as envisaged in the definition of “ publicly
controlled”; provided that a person mentioned below may for the purposes of this Act be
regarded by a municipality as the owner of a property in the following cases:(i)
A trustee, in the case of a property in a trust excluding state trust land;
(ii)
an executor or administrator, in the case of a property in a deceased estate;
(iii)
a trustee or liquidator, in the case of a property in an insolvent estate or in
liquidation;
(iv)
a judicial manager, in the case of a property in the estate of a person under judicial
management;
(v)
a curator, in the case of a property in the estate of a person under judicial
management;
(vi)
a person in whose name a usufruct or other personal servitude is registered, in the
case of a property that is subject to a usufruct or other personal servitude;
(vii)
a lessee, in the case of a property that is registered in the name of a municipality
and is leased by it; or
4
(25 MAY 2008)
(viii) a buyer, in the case of a property that was sold by a municipality and of which
possession was given to the buyer pending registration of ownership in the name of
the buyer;
“Permitted use”, relation to a property, means the limited purposes for which the property
may be used in terms of (a) Any restrictions imposed by(i) a condition of title;
(ii) a provision of a town planning or land use scheme; or
(iii) any legislation applicable to any specific property or properties; or
(b) Any alleviation of any such restrictions;
Public Benefit Organizations: means properties owned by public benefit organizations and
used for any specified public benefit activity listed in item 1 (welfare and humanitarian),item
2(health care ) and item 4 (education and development) of part 1 of the Ninth Schedule to the
Income Tax Act
“Privately owned towns serviced by the owner” means single properties, situated in an
area not ordinarily being serviced by the municipality, divided through sub division or
township establishment into (ten or more) full title stands and/ or sectional units and where all
rates related services inclusive of installation and maintenance of streets, roads, sidewalks,
lighting, storm water drainage facilities, parks and recreational facilities are installed at the full
cost of the developer and maintained and rendered by the residents of such estate.
“Property”, means(a) immovable property registered in the name of a person including, in the case of a
sectional title scheme, a sectional title unit registered in the name of a person;
(b) a right registered against immovable property in the name of a person, excluding a
mortgage bond registered against the property;
(c) a land tenure right registered in the name of a person or granted to a persons in terms
of legislation; or
(d) public service infrastructure;
“Property register”, means a register of properties referred to in section 23 of the Act;
“Protected area”, refers to nature reserves, botanical gardens or national parks provided
that the specific area/s is declared as a “Protected area” referred to in section 10 of the
Protected Areas Act;
“Protected Areas Act” means the National Environmental Management: Protected Areas
Act, 2003 (Act No. 57, of 2004);
5
(25 MAY 2008)
“Publicly controlled”, means owned by or otherwise under the control of an organ of state,
including (a) a public entity listed in the Public Finance Management Act,1999 (Act No. 1 of 1999),
(b) a municipality; or
(c) a municipal entity as defined in the Municipal Systems Act;
“Public service infrastructure”, means publicly controlled infrastructure of the following
kinds (a) national, provincial or other public road on which goods, services or labour move
across a municipal boundary;
(b) water or sewer pipes, ducts or other conduits, dams, water supply reservoirs, water
treatment plants or water pumps forming part of a water of sewer scheme serving the
public;
(c) power stations, power substations or power lines forming part of an electricity scheme
serving the public;
(d) gas or liquid fuel plants or refineries or pipelines for gas or liquid fuels, forming part of a
scheme fro transporting such fuels;
(e) railway lines forming part of national railway system;
(f) communication towers masts, exchanges or lines forming part of a communications
system serving the public;
(g) runways or aprons at national or provincial airports;
(h) breakwater, sea walls, channels, basin, quay walls, jetties, roads, railway or
infrastructure used for the provision of water, lights, power, sewage or similar services
of ports, or navigational aids comprising light houses, radio navigational aids, buoys, or
any other device or system used to assist the safe and efficient navigation of vessels;
(i) any other publicly controlled infrastructure as may be prescribed; or
(j) any right registered against immovable property
“Rate”, means a municipal rate on property envisaged in section 229(1)(a) of the
Constitution;
“Rateable property”, means property on which a municipality may levy a rate, excluding
property fully excluded from the levying of rates;
“Rebate”, in relation to a rate payable on a property, means a discount granted in terms of
the amount of the rate payable on the property;
“Reduction”, in relation to a rate payable on a property, means the lowering of the amount
for which the property was valued and the rating of the property at that lower amount;
6
(25 MAY 2008)
“Remainder of Townships” means the remaining extent of an approved or proclaimed
township which is still registered in the name of the applicant for Township Development and
which has not yet been transferred to another owner and on which no improvements have
been erected except for public service infrastructure
“Residential property” means improved property that:
(a) is used predominantly (60% or more) for residential purposes including any adjoining
property registered in the name of the same owner and used together with such
residential property as if it were one property. Any such grouping shall be regarded as
one residential property for rate rebate or valuation reduction purposes.
(b) is a unit registered in terms of the Sectional Title Act and used predominantly for
residential purposes.
(c) Is owned by a share-block company and used solely for residential purposes.
(d) Is a residence used for residential purposes situated on property used for or related to
educational purposes.
(e) Retirement schemes and life right schemes used predominantly (60% or more) for
residential purposes.
And specifically exclude hostels, flats, old age homes, guest houses and vacant land
irrespective of its zoning or intended use.
“Sectional titles unit”, means a unit defined in section 1 of the Sectional Titles Act; 1986
(Act No. 95 of 1986);
“Specified public benefit activity”, means an activity listed as welfare and humanitarian,
health care and education and development in Part 1 of the Ninth Schedule to the Income
Tax Act;
“State trust land”, means land owned by the state in trust for persons communally inhabiting
the land in terms of a traditional system of land tenure, land owned by the state over which
land tenure rights were registered or granted or land owned by the state which is earmarked
for disposal in terms of the Restitution of Land Rights Act, 1994 (Act No. 22 of 1994);
“Trading services”, means services for which the tariffs are fixed to yield a trading profit, like
electricity and water services;
“Urban land”, means land that is situated within a proclaimed township or approved in terms
of the DFA Act
“Vacant land”, means:
(a) Land on which no immovable improvements have been erected; or
(b) Land where the value added by immovable improvements is less than 10% of the value
of the land with no immovable improvements on it.
7
(25 MAY 2008)
1.
PURPOSE OF POLICY
1.1
The purpose of this policy is to allow Council to exercise its power to impose rates within a
statutory framework, with the aim to enhance certainty, uniformity and simplicity, taking into
account the historical imbalances within communities, as well as the burden of rates on the
poor.
1.2
As trustees on behalf of the local community, the Municipality shall adhere to its legislative
and moral obligation to ensure it implements this policy to safeguard the monetary value
and future service provision invested in property.
2.
LEGAL FRAMEWORK
2.1
This policy is mandated by Section 3 of the Local Government: Municipal Property Rates
Act, 2004 (No. 6 of 2004), which specifically provides that a municipality must adopt a
Rates Policy.
2.2
In terms of Section 229 of the Constitution of the Republic of South Africa, 1996 (No.108 of
1996), a municipality may impose rates on property.
2.3
In terms of the Local Government: Municipal Property Rates Act, 2004 (No. 6 of 2004) a
municipality in accordance witha.
Section 2(1), may levy a rate on property in its area; and
b.
Section 2(3), must exercise its power to levy a rate on property subject toi.
Section 229 and any other applicable provisions of the Constitution;
ii.
the provisions of the Property Rates Act and any regulations promulgated
in terms thereof; and
iii.
2.4
the rates policy.
In terms of Section 4 (1) (c) of the Local Government: Municipal Systems Act, 2000 (No. 32
of 2000), the municipality has the right to finance the affairs of the municipality by imposing,
inter alia, rates on property.
2.5
In terms of Section 62(1)(f)(ii) of the Local Government: Municipal Finance Management
Act, 2003 (No. 56 of 2003) the municipal manager must ensure that the municipality has
and implements a rates policy.
2.6
This policy must be read together with, and is subject to the stipulations of the Local
Government: Municipal Property Rates Act, 2004 (No. 6 of 2004) and any regulations
promulgated in terms thereof from time to time.
8
(25 MAY 2008)
2.7
This policy shall be applied with due observance of the Municipality’s policy with regard to
delegated powers. Such delegations refer to delegations between the Municipal Manager
and other responsible officials; the Council and the Mayor as well as between Council and
the Municipal Manager. All delegations in terms of this policy must be recorded in writing.
3.
IMPOSITION OF PROPERTY RATES
3.1.
The Council shall as part of each annual operating budget component impose a rate in the
rand on the market value of all rateable property recorded in the municipality’s valuation roll
and supplementary valuation roll.
3.2
The Council shall, in imposing the rate for each financial year, take proper cognizance of
the aggregate burden of rates and service charges on representative property owners, in
the various categories of property ownership, and of the extent to which this burden is or
remains competitive with the comparable burden in other municipalities within the local
economic region.
3.3
Policy Principles
3.3.1
All ratepayers, in a specific category, as determined by Council from time to time, shall be
treated equitably, as required by Section 3 (3) (a) of the Act;
3.3.2
Rates are raised in proportion to the market value of the property;
3.3.3
The municipal manager or his/her nominee must, subject to the guidelines provided by the
National Treasury and the Executive Committee of the municipality, make provision for the
following classification of services:(a)
Trading services
i.
(b)
Water (on agency basis for the Greater Sekhukhune District Municipality).
Economic services
i.
Refuse removal.
ii.
Sanitation
(on
agency
basis
for
the
Greater
Sekhukhune
District
Municipality).
(c)
Community and subsidised services - These include all those services ordinarily
being rendered by the municipality excluding those mentioned in 3.3.3(a) and (b).
3.3.4
Trading and economic services as referred to in clauses 3.3.3(a) and (b) must be ring
fenced and financed from service charges while community and subsidised services
referred to in clause 3.3.3(c) will be financed from surpluses on trading and economic
services, regulatory fees, rates and rates related income.
9
(25 MAY 2008)
3.3.5
Property rates shall not be used to subsidize trading or economic services;
3.3.6
Exemptions, reductions and rebates should not unreasonably affect the income base of the
municipality.
3.3.7
Therefore, pursuant to section 3 (3) (b) of the Act, it is the policy of the municipality, when –

levying different rates for different categories of properties;

exempting a specific category of owners of properties, or the owners of a
specific category of properties, from payment of a rate on their properties;

granting rebates; or

increasing rates;
To apply the following criteria 
poverty alleviation;

stimulation of industrial growth;

promotion of tourism;

creation of jobs;

maintenance of agricultural activity;

assist charity and other public benefit organizations;

this municipality’s budgetary needs;

this municipality’s integrated development plan; and

surpluses contributed by other services.
4.
CATEGORIES OF RATEABLE PROPERTIES
4.1
Different rates may be levied in respect of the following categories of rateable properties
and such rates will be determined on an annual basis during the compilation of the annual
budget:4.1.1
4.1.1.1
Residential Properties (r)
r
4.1.1.2 r
Residential 1
Parks owned by township owner
4.1.1.3
r2
Residential 2
4.1.1.4
r3
Residential 3
4.1.2
4.1.2.1
Government (g)
gb
Business
10
(25 MAY 2008)
4.1.2.2
ge
Educational
4.1.2.3
gh
Hospital or clinic
4.1.2.4
gp
Police station
4.1.2.5
go
Other
4.1.2.6
gr
Residential
4.1.2.7
gmin
Mining and related uses
4.1.3 Business
4.1.3.1
bus
Businesses including guesthouses in urban areas with services
4.1.3 .2
buws
Businesses including guesthouse on farms without services
4.1.4
ind
Industrial
4.1.5
f
Formal and informal settlements
4.1.6
il
Illegal use
4.1.7
is
Independent school
4.1.8
mun
Municipal
4.1.9
min
Mining and related uses
4.1.10 nr
Nature reserve, national park or national botanical garden
4.1.11 nu
Non-urban land
4.1.12 psi
Public service infrastructure
4.1.13 pw
Place of public worship or official residence
4.1.14 re
Remaining extent of proclaimed township
4.2.
In determining the category of a property referred to in 4.1 the municipality shall take into
consideration the following criteria or a combination thereof:-
4.2.1
The formal zoning of the property;
4.2.2
Township establishment approvals;
4.2.3
The use of the property;
4.2.4
Permitted use of the property; and
4.2.5
The geographical area in which the property is situated.
4.3
In order to create certainty and to ensure consistency the criteria mentioned in 4.2 shall be
11
(25 MAY 2008)
applied as indicated below in order of priority and no deviation is permissible:
4.3.1
Properties shall first of all be determined by the actual use of the property and if the
property was not in use then according to the zoning of the property. Town planning
schemes, town establishment schemes and town planning regulations may be used to
determine the formal zoning.
4.4
Properties used for multiple purposes shall be categorised and rated as provided for in
section 9 of the Act. A property used for multiple purposes is, for rates purposes, assigned
in terms of section 9 of the Act as follows:-
4.4.1
Properties in urban land shall be categorised and rated as provided in section 9(1)(b) of the
Act to correspond with the dominant use of the property.
4.4.2
Properties in non-urban land shall be categorised and rated as provided in section 9(1)(c)
of the Act to correspond to the multiple purposes for which the property is used. Where the
whole or a portion of non-urban land is used for business, industrial or mining purposes the
market value of such land or portion of it must be recorded separately in the valuation roll
and rated according to the applicable category”.
5.
CATEGORIES OF OWNERS
5.1
For the purpose of granting exemptions, reductions and rebates in terms of clauses 6,7
and 8 respectively the following categories of owners of properties are determined:-
5.1.1
Those owners who qualify and who are registered as indigents in terms of the adopted
indigent policy of the municipality;
5.1.2
Those owners who do not qualify as indigents in terms of the adopted indigent policy of the
municipality but whose total monthly income is less than the amount annually determined
by the municipality in its budget;
5.1.3
Owners of property situated within an area affected by-
5.1.3.1 a disaster within the meaning of the Disaster Management Act, 2002 (Act No. 57 of 2002);
or
5.1.3.2 serious adverse social or economic conditions.
5.1.4
Owners of residential properties with a market value below the amount as determined
annually by the municipality in its budget; and
5.1.5
Owners of agricultural properties as referred to in clause 8.1(e).
12
(25 MAY 2008)
5.1.6
Child headed families where any child of the owner or child who is a blood relative of the
owner of the property, is responsible for the care of siblings or parents of the household.
6.
EXEMPTIONS AND IMPERMISSIBLE RATES
6.1
The following categories of property are exempted from rates:-
(a)
Municipal properties
Municipal properties are exempted from paying rates as it will increase the rates burden or
service charges to property owners or consumers. However, where municipal properties
are leased, the lessee will be responsible for the payment of determined assessment rates
in accordance with the lease agreement.
(b)
Residential properties
All residential properties with a market value of less than the amount as annually
determined by the municipality are exempted from paying rates. For the 2011/2012
financial year the maximum reduction is determined as R50 000. The impermissible
rates of R15 000 contemplated in terms of section 17(1) (h) of the Property Rates Act is
included in the amount referred to above as annually determined by the municipality. The
remaining R35 000 is an important part of the council’s indigent policy and is aimed
primarily at alleviating poverty.
(c)
Public Service Infrastructure
Is exempted from paying rates as allowed for in the Act as they provide essential services
to the community.
(d)
Right registered against a property
Any right registered against a property as defined in the definition of property in clause 2 of
this policy is exempted from paying rates.
6.2
Exemptions in clause 6.1 will automatically apply and no application is thus required.
6.3
Impermissible Rates: In terms of section 17(1) of the Property Rates Act the municipality
may, inter alia, not levy a rate:(a)
On those parts of a special nature reserve, national park or nature reserve within
the meaning of the Protected Areas Act, or of a national botanical garden within the
meaning of the National Environmental Management: Biodiversity Act, 2004, which
are not developed or used for commercial, business, or residential agricultural
purposes.
(b)
On mineral rights within the meaning of paragraph (b) of the definition of “property”
in section 1 of the Act.
13
(25 MAY 2008)
(c)
On a property belonging to a land reform beneficiary or his or her heirs, provided
that this exclusion lapses ten years from the date on which such beneficiary’s title
was registered in the office of the Registrar of Deeds.
(d)
On a property registered in the name of and used primarily as a place of public
worship by a religious community, including an official residence registered in the
name of that community which is occupied by an office-bearer of that community
who officiates at services at that place of worship.
6.4
i.
Public Benefit Organizations (PBO)
Sporting bodies
Property used by an organisation for sporting purposes on a non-professional basis.
ii.
Cultural institutions
Property used for purposes declared in terms of the Cultural Institutions Act, Act 29
of 1969 or the Cultural Institutions Act, Act 66 of 1989.
iii.
Museums, libraries, art galleries and botanical gardens
Property registered in the name of private persons, open to the public and not
operated for gain.
iv.
Youth development organisations
Property owned and/or used by organisations for the provision of youth leadership or
development programmes.
v.
Animal welfare
Property owned or used by organisations whose exclusive aim is to protect birds,
reptiles and animals on a not-for-gain basis.
vi.
Cemeteries and crematoriums
Property used for cemeteries and crematoriums on a not-for-gain basis.
vii.
Charitable institutions
Property owned or used by institutions or organisations whose aim is to perform
charitable work on a not-for-gain.
viii.
Welfare institutions
Properties used exclusively as an orphanage, non-profit retirement villages, old age
homes or benevolent/charitable institutions, including workshops used by the
inmates, laundry or cafeteria facilities, provided that any profits from the use of the
property are used entirely for the benefit of the institution and/or to charitable
purposes within the municipality.
6.4.1
All possible benefiting organisations in clause 6.4 must apply annually for exemptions. All
applications must be addressed in writing to the municipality by 31 August for the financial
year in respect of which the rate is levied. If the exemption applied for is granted the
exemption will apply for the full financial year.
14
(25 MAY 2008)
6.4.2
Public benefit organizations must attach a SARS tax exemption certificate issued by the
South African Revenue Services (SARS) as contemplated in Part 1 of the Ninth Schedule of
the Income Tax Act, 1962 (No 58 of 1962) to all applications.
6.5
The municipality retains the right to refuse the exemption if the details supplied in the
application form were incomplete, incorrect or false.
6.6
The extent of the exemptions implemented in terms of clauses 6.1 to 6.4 must annually be
determined by the municipality and included in the annual budget.
7.
REDUCTIONS
7.1
Reductions as contemplated in section 15 of the Act. Will be considered on an ad-hoc basis
in the event of the following:-
7.2
7.1.1
Partial or total destruction of a property.
7.1.2
Disasters as defined in the Disaster Management Act, 2002 (Act 57 of 2002).
The following conditions shall be applicable in respect of clause 7.1:7.2.1
The owner referred to in clause 7.1.1 shall apply in writing for a reduction and the
onus will rest on such applicant to prove to the satisfaction of the municipality that
his property has been totally or partially destroyed. He/ she will also have to
indicate to what extent the property can still be used and the impact on the value of
the property.
7.2.2
Property owners will only qualify for a rebate if affected by a disaster as referred to
in the Disaster Management Act, 2002 (Act No. 57 of 2002).
7.2.2
A maximum reduction, to be determined on an annual basis, will be allowed in
respect of both clauses 7.1.1 and 7.1.2. For the 2010/2011
7.2.3
financial year the maximum reduction will amount to 80%.
7.2.4
An ad-hoc reduction will not be given for a period in excess of 6 months, unless
the municipality gives further extension on application.
7.2.5
If rates were paid in advance prior to granting of a reduction the municipality will
give credit to such an owner as from the date of reduction until the date of lapse of
the reduction or the end of the period for which payment was made whichever
occurs first.
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(25 MAY 2008)
8.
REBATES
8.1.
Categories of property
(a)
Public Educational Institutions
The municipality may grant a rebate as annually determined for property used by
educational institutions declared or registered by law provided that an application in
the prescribed format is received not later than 30 September of each year.
(b)
Independent Schools
The municipality may grant a rebate as annually determined for property used by
registered independent schools for educational purposes only provided that an
application in the prescribed format is received not later than 30 September of each
year.
(c)
Business, commercial and industrial properties
i.
The municipality may grant rebates to rateable enterprises that promote
local, social and economic development in its area of jurisdiction. The
following criteria will apply:-
ii.
a.
job creation in the municipal area;
b.
social upliftment of the local community; and
c.
creation of infrastructure for the benefit of the community.
A maximum rebate as annually determined by the municipality will be granted
on approval, subject to:a.
a business plan issued by the directors of the company indicating how
the local, social and economic development objectives of the
municipality are going to be met;
b.
a continuation plan issued by the directors and certified by auditors of
the company stating that the objectives have been met in the first year
after establishment and how the company plan to continue to meet the
objectives; and
c.
an assessment by the municipal manager or his/her nominee
indicating that the company qualifies.
iii.
All applications must be addressed in writing to the municipality by 31 August
for the financial year in respect of which the rate is levied. If the rebate
applied for is granted the rebate will apply for the full financial year.
(d)
Privately owned towns serviced by the owner
i.
The municipality may grant an additional rebate, to be determined on an
annual basis, which applies to privately owned towns serviced by the owner
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(25 MAY 2008)
qualifying as defined in clause A of this policy. All applications must be
addressed in writing to the municipality by 31 August for the financial year in
respect of which the rate is levied. If the rebate applied for is granted the
rebate will apply for the full financial year. For the 2010/2011 financial year
the rebate is determined as 40%.
(e)
Public Benefit Organisations (PBO’s)
Properties owned by public benefit organizations and used for any specified public
benefit activity listed in item1 (welfare and humanitarian),item 2(health
care)and item 4(education and development) of part 1 of the ninth Schedule
of the Income Tax Act will pay a rate that may not exceed the ratio as
published in Government Gazette no 33016 of 12 March 2010. For 2010 /11
the Minister promulgated a ratio of 1:0.25
(f)
Agricultural property rebate
i.
When considering the criteria to be applied in respect of any exemptions,
rebates and reductions on any properties used for agricultural purposes the
municipality must take into account:a.
the extent of rates related services rendered by the municipality in
respect of such properties.
b.
the contribution of agriculture to the local economy.
c.
the extent to which agriculture assists in meeting the service delivery
and developmental objectives of the municipality; and
d.
the contribution of agriculture to the social and economic welfare of
farm workers.
ii.
In terms of section 84 of the Act the Minister for Provincial and Local
Government, and in concurrence with the Minister of Finance as required
through section 19 of the Act, may determine that a rate levied by the Council
on a category of non residential property may not exceed the ratio to the rate
on residential property. In the absence of any such promulgation the
municipality will apply the standard ratio for agricultural properties as 1:0.25
(75% rebate on the tariff for residential properties). For the 2010/2011
financial year the minister has promulgated a ratio of 1:0.25.
iii.
An additional rebate (based on the total property value) of maximum 10% will
be granted by the municipality in respect of the following:a.
2,5% for the provision of accommodation in a permanent structure to
farm workers and their dependants.
b.
2,5% if these residential properties are provided with potable water.
c.
2,5% if the farmer for the farm workers electrifies these residential
properties.
17
(25 MAY 2008)
d.
2,5% for the provision of land for burial to own farm workers or
educational or recreational purposes to own farm workers as well as
people from surrounding farms.
iv.
The granting of additional rebates is subject to the following:a.
All applications must be addressed in writing to the municipality by
31 August 2009 indicating how service delivery and development
obligations of the municipality and contribution to the social and
economic welfare of farm workers were met. This application will be
required as a once off requirement. Any new applications for the
2010/2011 financial year and onwards must be addressed in writing to
the municipality by 31 August for the financial year in respect of which
the rate is levied. If the rebate applied for is granted the rebate will
apply for the full financial year and such application again regarded as
a once off requirement.
b.
Council reserves the right to send officials or its agents to
premises/households receiving relief on annual basis for the purpose
of conducting an on-site audit of the details supplied. The onus also
rests on recipients to immediately notify Council of any changes in
their original application.
c.
The municipality retains the right to refuse the exemption if the details
supplied in the application form were incomplete, incorrect or false.
v.
No other rebates will be granted to properties that qualify for the agricultural
rebate. For the avoidance of doubt, properties that qualify for the agricultural
rebate will not be entitled to the residential rate exemption as set out in
clause 6.1(b) of this policy.
(g)
Rebate for developed stands not yet sold by the developer
i.
The municipality grants a rebate, (residential tariff less 20%)on the DE Value
which applies to vacant stands not yet sold and transferred by the developer.
Upon selling of such vacant stands. The rebate will lapse on the date of
transfer of the property into the name of the new owner and the new owner
will pay rates on the market value
(h)
Rebate for quest houses on non Urban Land
The Municipality may grant a rebate to quest houses on non urban land where
they provide for services by themselves. For the 2011/12 financial year a
rebate of 30% on business tariff will be applicable.
8.2
Categories of owners
Indigent owners and child headed families will receive a 100% rebate from payment of
property tax:-
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(25 MAY 2008)
(a)
Indigent households
i.
Owners who qualify and who are registered as indigents in terms of the
adopted indigent policy of the municipality, regardless of the value of the
property, will receive a 100% rebate from payment of property tax. If
qualifying in terms of the indigent policy this 100% rebate will automatically
apply and no further application is thus required by the owner.
(b)
Child headed families
i.
Families headed by children will receive a 100% rebate from payment of
property tax according to monthly household income. To qualify for the
rebate the head of the family must:a.
occupy the property as his/her normal residence;
b.
not be older than 18 years of age;
c.
still be a scholar or jobless; and
d.
be in receipt of a total monthly income from all sources not
exceeding an amount to be determined annually by the Municipality;
For the 2010/2011 financial year this amount is determined as 2 times
social pension per month.
ii.
The family head must apply on a prescribed application form for registration
as a child headed household and must be assisted by the municipality with
completion of the application form. If qualifying, this rebate will automatically
apply and no further application is thus required.
iii.
Applications must be accompanied by:a.
a certified copy of the identity document or any other proof of the
applicant’s age which is acceptable to the municipality;
iv.
b.
sufficient proof of total household income;
c.
an affidavit from the applicant;
These applications must reach the municipality before the end of October
preceding the start of the new municipal financial year for which relief is
sought.
v.
The municipality retains the right to refuse rebates if the details supplied in
the application form were incomplete, incorrect or false.
(c)
Retired and Disabled Persons Rate Rebate
i.
Retired and Disabled Persons qualify for special rebates according to
monthly household income. For the 2011/12 financial year it will be a further
40% discount.
To qualify for the rebate a property owner must:a.
occupy the property as his/her normal residence;
b.
not be the owner of more than one property;
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(25 MAY 2008)
c.
be at least 60 years of age or in receipt of a disability pension from the
Department of Welfare and Population Development;
d.
be in receipt of a total monthly income from all sources (including
income of spouses of owner) not exceeding an amount annually
determined by the Municipality. For the 2010/2011 financial year this
amount is determined as three times social pension per month; and
e.
provided that where the owner is unable to occupy the property due to
no fault of his/her own, the spouse or minor children may satisfy the
occupancy requirement.
ii.
Property owners must apply on a prescribed application form for a rebate as
determined by the municipality.
iii.
Applications must be accompanied by:a.
a certified copy of the identity document or any other proof of the
owners age which is acceptable to the municipality;
b.
sufficient proof of income of the owner and his/her spouse;
c.
an affidavit from the owner;
d.
if the owner is a disabled person proof of a disability pension payable
by the state must be supplied; and
e.
if the owner has retired at an earlier stage for medical reasons proof
thereof must be submitted.
iv.
All applications must be addressed in writing to the municipality by 31
August for the financial year in respect of which the rate is levied. If
the rebate applied for is granted the rebate will apply for the full
financial year.
v.
The municipality retains the right to refuse the exemption if the details
supplied in the application form were incomplete, incorrect or false.
8.3
Properties with a market value below a prescribed valuation level of a value to be
determined annually by the Municipality may, instead of a rate being determined on the
market value, be rated a uniform fixed amount per property.
8.4
The extent of the rebates granted in terms of clauses 8.1 and 8.2 must annually be
determined by the municipality and included in the annual budget.
9.
SPECIAL RATING AREAS
9.1
The municipality may from time to time, as provided for in Section 22 of the Act, and as to
be depicted in its annual budget and by resolution of the Council, determine a certain area
within the boundaries of the municipality, as a special rating area.
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(25 MAY 2008)
9.2
The following matters shall be attended to in consultation with the committee referred to in
clause 10.6 whenever special rating is being considered:9.2.1
Proposed boundaries of the special rating area;
9.2.2
Statistical data of the area concerned giving a comprehensive picture of the
number of erven with its zoning, services being rendered and detail of services
such as capacity, number of vacant erven and services that are not rendered;
9.2.3
Proposed improvements clearly indicating the estimated costs of each individual
improvement;
9.2.4
Proposed financing of the improvements or projects;
9.2.5
Priority of projects if more than one;
9.2.6
Social economic factors of the relevant community;
9.2.7
Different categories of property;
9.2.8
The amount of the proposed special rating;
9.2.9
Details regarding the implementation of the special rating;
9.2.10 The additional income that will be generated by means of this special rating.
9.3
An additional rate, as will be depicted in the annual budget, shall be levied on the properties
in the identified area, for the purpose of raising funds for improving or upgrading of the
specified area.
9.4
The municipality may differentiate between categories of properties when levying the
additional special rate.
9.5
The municipality shall establish separate accounting and other record-keeping systems for
the identified area and the households concerned shall be kept informed of projects and
financial implications on an annual basis.
9.6
The municipality shall establish a committee, composed by representatives from the
specific area, to act as consultative and advisory forum. This committee shall be a subcommittee of the ward committee/s in the area. The election of the committee will happen
under the guidance of the Municipal Manager. Gender representivity shall be taken into
consideration with the establishment of the committee. The committee will serve in an
advisory capacity only and will have no decisive powers.
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(25 MAY 2008)
9.7
In determining the special additional rates the municipality shall differentiate between
different categories as referred to in clause 4.
9.8
The additional rates levied shall be utilised for the purpose of improving or upgrading of the
specific area only and not for any other purposes whatsoever.
10.
PAYMENT OF RATES
10.1
The rates levied on the properties shall be payable:-
10.2
(a)
on a monthly basis; or
(b)
annually, before 30 December each year.
Ratepayers may choose paying rates annually in one installment on or before 30 December
each year. If the owner of property that is subject to rates, notify the municipal manager or
his/her nominee in writing not later than 30 June in any financial year, or such later date in
such financial year as may be determined by the municipality that he/she wishes to pay all
rates annually, such owner shall be entitled to pay all rates in the subsequent financial year
and each subsequent financial year annually until such notice is withdrawn by him/her in a
similar manner.
10.3
The municipality shall determine the due dates for payments in monthly installments and
the single annual payment and this date shall appear on the accounts forwarded to the
owner/ tenant/ occupants/ agent.
10.4
Interest on arrears rates, whether payable on or before 30 December or in equal monthly
installments, shall be calculated in accordance with the provisions of the Credit Control and
Debt Collection Policy of the Municipality. No interest will be charged on annually payments
before January of the following year
10.5
If a property owner who is responsible for the payment of property rates in terms of this
policy fails to pay such rates in the prescribed manner, it will be recovered from him/her in
accordance with the provisions of the Credit Control and Debt Collection By-law of the
Municipality.
10.6
Arrears rates shall be recovered from tenants, occupiers and agents of the owner, in terms
of section 28 and 29 of the Act and the Municipality’s credit control and debt collection bylaw.
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(25 MAY 2008)
10.7
Where the rates levied on a particular property have been incorrectly determined, whether
because of an error or omission on the part of the municipality or false information provided
by the property owner concerned or a contravention of the permitted use to which the
property concerned may be put, the rates payable shall be appropriately adjusted for the
period extending from the date on which the error or omission is detected back to the date
on which rates were first levied in terms of the current valuation roll.
10.8
In addition, where the error occurred because of false information provided by the property
owner or as a result of a contravention of the permitted use of the property concerned,
interest on the unpaid portion of the adjusted rates payable shall be levied at the maximum
rate permitted by prevailing legislation.
11.
ACCOUNTS TO BE FURNISHED
11.1
The municipality will furnish each person liable for the payment of rates with a written
account, which will specify:
(i)
the amount due for rates payable,
(ii)
the date on or before which the amount is payable,
(iii)
how the amount was calculated,
(iv)
the market value of the property,
(v)
if the property is subject to any compulsory phasing –in discount, the amount of the
discount; and
(vi)
11.2
rebates, exemptions, reductions or phasing-in, if applicable.
A person liable for payment of rates remains liable for such payment, whether or not such
person has received a written account from the municipality. If the person concerned has
not received a written account, he/she must make the necessary enquiries with the
municipality.
11.3
In the case of joint ownership the municipality shall consistently, in order to minimise costs
and unnecessary administration, recover rates from one of the joint owners only provided
that it takes place with the consent of the owners concerned.
12.
GENERAL VALUATION OF RATEABLE PROPERTY
12.1
The municipality shall prepare a new valuation roll at least every 4 (four) years.
12.2
In accordance with the Act the municipality, under exceptional circumstances, may request
the MEC for Local Government and Housing in the province to extend the validity of the
valuation roll to 5 (five) years.
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(25 MAY 2008)
12.3
Supplementary valuations may be done on a continual basis but at least on an annual
basis.
13.
LIABILITY FOR AND RECOVERY OF RATES
13.1
The owner of a property shall be liable for the payment of the rates levied on the property.
13.2
Joint owners of a property shall be jointly and severally liable for payment of the rates
levied on the property.
13.3
In the case where an agricultural property is owned by more than one owner in undivided
shares and these undivided shares were allowed before the commencement date of the
Subdivision of Agricultural Land Act, 1970, Act No. 70 of 1970, the municipality shall hold
any joint owners liable for all rates levied in respect of the agricultural property concerned
or hold any joint owners only liable for that portion of rates levied on the property that
represents joint owner’s undivided share in the property.
13.4
In the event that a property has been transferred to a new owner and an Interim Valuation
took place, the immediate predecessor in title, as well as the new owner, will jointly and
severally be held responsible for settling the interim account.
13.5
Properties, which vest in the Municipality during developments, i.e. open spaces and roads
should be transferred at the cost of the developer to the Municipality. Until such time, rates
levied will be for the account of the developer even if it is zoned as Municipal in the
valuation roll
13.6
Rates Clearance Certificates will be valid for a period of maximum 3 months after date of
issuing
14.
CORRECTION OF ERRORS AND OMISSIONS
14.1
Where the rates levied on a particular property have been incorrectly determined, whether
because of an error or omission on the part of the municipality or false information provided
by the property owner concerned or a contravention of the permitted use to which the
property concerned may be put, the rates payable shall be appropriately adjusted for the
period extending from the date on which the error or omission is detected back to the date
on which rates were first levied in terms of the current valuation roll.
14.2
In addition, where the error occurred because of false information provided by the property
owner or as a result of a contravention of the permitted use of the property concerned,
interest on the unpaid portion of the adjusted rates payable shall be levied at the maximum
rate permitted by prevailing legislation.
24
(25 MAY 2008)
In the case where an agricultural property is owned by more than one owner in undivided
shares and these undivided shares were allowed before the commencement date of the
Subdivision of Agricultural Land Act, 1970, Act No. 70 of 1970, the municipality shall hold
any joint owners liable for all rates levied in respect of the agricultural property concerned
or hold any joint owners only liable for that portion of rates levied on the property that
represents joint owner’s undivided share in the property.
15
DIFFERENTIAL RATES
15.1
Criteria for differential rating on different categories of properties will be according to:(a)
The nature of the property including its sensitivity to rating e.g. agricultural
properties used for agricultural purposes.
(b)
15.2
The promotion of social and economic development of the municipality.
Differential rating among the various property categories will be done by way of setting
different cent amount in the rand for each property category; and
15.3
by way of reductions and rebates as provided for in this policy document.
16.
COSTS OF EXEMPTIONS, REBATES, REDUCTIONS AND PHASING IN OF RATES
16.1
During the budget process the accounting officer must inform Council of all costs
associated with suggested exemptions, rebates, reductions and phasing in of rates.
16.2
Provisions must be made on the operating budget for: (a)
the full potential revenue associated with property rates; and
(b)
the full costs associated with exemptions, rebates, reductions and phasing in of
rates.
16.3
The revenue foregone should be further appropriately disclosed in the annual financial
statements, and the rebates also be indicated on the rates accounts submitted to each
property owner.
17.
LOCAL, SOCIAL AND ECONOMIC DEVELOPMENT
17.1
The municipality may grant rebates to organisations that promote local, social and
economic development in its area of jurisdiction.
17.2
The Municipality’s LED Unit must validate the qualification for the continued application of
the rebate and the said rebates must be phased- out within 3 years from the date that the
rebate was granted for the first time.
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(25 MAY 2008)
17.3
Rebates will be restricted to a percentage determined by Council from time to time.
18.
REGISTER OF PROPERTIES
18.1
The municipality will compile and maintain a register in respect of all properties situated
within the jurisdiction of the municipality. The register will be divided into Part A and Part B.
18.2
Part A of the register will consist of the current valuation roll of the municipality and will
include all supplementary valuations done from time to time.
18.3
Part B of the register will specify which properties on the valuation roll or any
supplementary valuation roll are subject to:-
18.4
i.
Exemption from rates in terms of section 15 of the Property Rates Act,
ii.
Rebate or reduction in terms of section 15,
iii.
Phasing-in of rates in terms of section 21, and
iv.
Exclusions as referred to in section 17.
The register will be open for inspection by the public at the municipal main offices during
office hours or on the website of the municipality.
18.5
The municipality will update Part A of the register every 6 months during the supplementary
valuation process.
18.6
Part B of the register will be updated on an annual basis as part of the implementation of
the municipality’s annual budget.
19.
COMMUNITY PARTICIPATION
19.1
Before the municipality adopts the rates policy, the municipal manager will follow the
process of community participation envisaged in chapter 4 of the Municipal Systems Act
and comply with the following requirements:
19.1.1
Council must establish appropriate mechanisms, processes and procedures to
enable the local community to participate and will provide for consultative
sessions with locally recognised community organisations and where appropriate
traditional authorities.
19.1.2
Conspicuously display the draft rates policy for a period of at least 30 days at the
municipality’s head and satellite offices and libraries and on the website.
19.1.3
Advertise in the media a notice stating that the draft rates policy has been
prepared for submission to council and that such policy is available at the various
municipal offices and on the website for public inspection.
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(25 MAY 2008)
19.1.4
Property owners and interest persons may obtain a copy of the draft policy from
the municipal offices during office hours at a fee of determined annually by the
municipality. Property owners and interest persons are invited to submit written
comments or representations to the municipality within the specified period in the
notice.
19.1.5
Council will consider all comments and/or representations received when
considering the finalisation of the rates policy.
19.1.6
The municipality will communicate the outcomes of the consultation process in
accordance with section 17 of the Municipal Systems Act 32 of 2000. For this
purpose, public meetings will be advertised in local newspapers distributed within
the Greater Tubatse municipal area.
20.
NOTIFICATION OF RATES
20.1
A notice stating the date on which the new rates shall become operational as resolved by
Council must be displayed, published, disseminate and served by the Municipality in terms
of Section 49 of the Act.
20.2
This is to be aligned with the annual budgetary process and shall be subject to the same
obligations as contemplated in the MFMA.
21.
BY-LAWS TO GIVE EFFECT TO THE RATES POLICY
21.1
The municipality will adopt By-laws to give effect to the implementation of the Rates Policy
and such By-laws may differentiate between different categories of properties and different
categories of owners of properties liable for the payment of rates.
22
REGULAR REVIEW PROCESSES
22.1
The rates policy must be reviewed on an annual basis to ensure that it complies with the
Municipality’s strategic objectives as contained in the Integrated Development Plan and
with legislation.
23
ENFORCEMENT/IMPLEMENTATION
23.1
This policy has been approved by the Municipality in terms of Council resolution
………......... dated ………. and takes effect on the effective date of the second valuation
roll on 1 July 2011
27
GREATER TUBATSE
LOCAL MUNICIPALITY
PRINCIPLES AND POLICY ON
CREDIT CONTROL AND DEBT
COLLECTION
To be implement 1 July 2012
Table of Contents
Page Number
1.
Preamble
2
2.
Definitions
3
3.
Principles
7
4.
Supervisory Authority
8
5.
Implementing Authority
8
6.
Unsatisfactory Levels of Indebtedness
9
7.
Application for the Provision of Municipal Services
9
8.
Deposits and Guarantees
10
9.
Accounts and Billing
11
10.
Metering of Municipal Services
13
11.
Payments of accounts
14
12.
Interest on arrear debt
15
13.
Enquiries and appeals
15
14.
Debt Collection
16
15.
Arrangements to pay arrear debt
20
16.
Indigent debtors
23
17.
Debt of Absconded Debtors
23
18.
Staff and Councillors – Payment of Arrears
23
19.
Administration orders – Payment of arrears
24
20.
Write off of irrecoverable debt
24
21.
Certificates required for tenders
24
22.
Theft and fraud
24
23.
Reporting on performance management
25
24.
Income collection target
25
25.
Property Management Leases
25
26.
Temporary Workers
25
27.
Provision for bad debt
26
28
Unallocated Receipts
27
29.
Publication of Policy
27
30.
Application of the Policy
27
31.
Implementation and Review of this Policy
27
1
PRINCIPLES AND POLICY ON CREDIT CONTROL AND DEBT COLLECTION
1.
PREAMBLE
WHEREAS section 152 (1) (b) of the Constitution of the Republic of South Africa Act 108 of 1996 (‘the
Constitution’) provides that one of the objects of local government is to ensure that the provision of
services to communities occurs in a sustainable manner;
AND WHEREAS section 153 (a) of the Constitution provides that a municipality must structure its
administration, 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 WHEREAS section 195 (1) of the Constitution provides that the public administration must be
governed by the democratic values and principles enshrined in the Constitution, including
The promotion of the efficient, economic and effective use of resources;

The provision of services impartially, fairly, equitably and without bias; and

The fact that people’s needs must be responded to.
AND WHEREAS section 4 (1) (c) of the Local Government: Municipal Systems Act 33 of 2000 (‘the
Systems Act’) provides that the Council of a municipality has the right to finance the affairs of the
municipality by charging fees for services, imposing surcharges on fees, rates on property and, to the
extent authorised by national legislation, other taxes, levies and duties;
AND WHEREAS section 5 (1) (g), read with subsection (2) (b) of the Systems Act provides that
members of the local community have the right to have access to municipal services which the
municipality provides provided that, where applicable and subject to the policy for indigent debtors,
pay promptly for services fees, surcharges on fees, other taxes, levies and duties imposed by the
municipality;
AND WHEREAS section 6 (2) (c), (e) and (f) of the Systems Act provides that the administration of a
municipality must take measures to prevent corruption; give members of a local community full and
accurate information about the level and standard of municipal services that they are entitled to
receive; and inform the local community about how the municipality is managed, of the costs involved
and the persons in charge;
AND WHEREAS Chapter 9, sections 95, 96, 97, 98, 99 and 100, of the Systems Act provides for
Customer Care Management, Debt Collection responsibility of the Municipality, contents of the policy,
by-laws that give effect to the policy, Supervisory authority and Implementing authority, respectively.
2
2.
DEFINITIONS
In this policy any word or expression to which a meaning has been assigned in the Local
Government: Municipal Systems Act, has that meaning, unless the context, indicates otherwise“Arrangement” means a written agreement entered into between the municipality and the
debtor where specific repayment parameters are agreed to.
“Arrears” means those rates and service charges that have not been paid by the due date and
for which no arrangement has been made.
“Account” means an account rendered specifying charges for services provided by the
municipality, or any authorised and contracted service provider, and which account may or may
not include assessment rates levies;
“Authorised Representative” means a person or instance legally appointed by the
municipality to act or to fulfill a duty on its behalf.
"Billing date" means the date upon which the monthly statement is generated and debited to
the customer's account.
"Business premises" means premises utilised for purposes other than residential and
excludes the following: (a)
hospitals, clinics and institutions for mentally ill persons which are not operated for gain;
(b)
museums, art galleries, libraries and botanical gardens which are registered in the
names of private persons and are open to the public, whether admission fees are
charged or not;
(c)
sports grounds used for the purpose of amateur sports and any social activities which
are connected with such sports;
(d)
any property registered in the name of an institution or organisation which, in the
opinion of the municipality performs charitable work;
(e)
any property utilised for bona fide church or religious purposes.
"Chief Financial Officer" means the person appointed as the Chief Financial Officer of the
municipality, or his or her nominee.
“Credit Control” means all the functions relating to the collection of monies owed by ratepayers
and the users of municipal services.
“Council” means the Council of the Greater Tubatse Municipality.
“Customer” means any occupier of any premises to which the Council has agreed to supply or
is actually supplying services, or if there is no occupier, then the owner of the premises and
includes any debtor of the municipality.
"day/days" means calendar days, inclusive of Saturdays, Sundays and public holidays.
3
“Defaulter” means any person owing the municipality arrear monies in respect of taxes and/or
service charges without an arrangement.
"Due date" in relation to –
(a)
rates due in respect of any immovable property, means the thirtieth(30) day of
September of the financial year for which such rate is made, or any other date
determined by council by notice in the Provincial Gazette, and
(b)
in respect of service charges due in respect of any immovable property, means the date
for payment indicated on the account.
(c)
should such day fall on a Saturday, Sunday or public holiday the due date shall be the
next working day.
"Immovable property" includes –
(a)
an undivided share in immovable property, and
(b)
any right in immovable property.
“Implementing Authority” means the Municipal Manager or his or her
nominee, acting in
terms of section 100 of the Local Government: Municipal Systems Act No. 32 of 2000.
"Indigent debtor” means:
(a)
the head of an indigent household:
(i)
who applied for and has been declared indigent in terms of Council’s
Indigent Support Policy for the provision of services from the municipality;
and
(ii)
who makes application for indigent support in terms of Council’s Indigent
Support Policy on behalf of all members of his or her household;
(b)
orphaned minor children duly represented by their legal and/or de facto guardians.
“Indigent Support Programme” means a structured program for the provision of indigent
support subsidies to qualifying indigent debtors in terms of the Council’s Indigent Support
Policy.
"Indigent Support Policy” means the Indigent Support Policy adopted by the Council of the
municipality.
“Interest” Means a charge levied on all arrear monies for more than 30days with the same
legal priority as service fees and calculated at a rate determined by Council from time to time;
“Manager Income” Means the official of the municipality responsible for the collection of
monies owed to the municipality and/or any other official to whom he/she has delegated duties
and responsibilities in terms of this policy.
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"Month" means a calendar month.
"Monthly average consumption" means the monthly average consumption in respect of that
property calculated on the basis of consumption over the preceding or succeeding twelve
months.
„Municipality” means the Municipal Council of the Greater Tubatse Municipality or any duly
authorised Committee, political office bearer or official.
"Municipal pay point" means any municipal office in the area of jurisdiction of the municipality
designated by Council for such purposes, or any such other places as the Chief Financial
Officer may from time to time designate.
"Municipal services" means services provided either by the municipality, or by an external
agent on behalf of the municipality in terms of a service delivery agreement.
“Municipal Manager” means the Municipal Manager of the Greater Tubatse municipality or his
or her nominee acting in terms of power delegated to him or her by the said Municipal Manager
with the concurrence of the Council.
"Occupier" means the person who controls and resides on or controls and otherwise uses
immovable property, provided that –
(a)
the husband or wife of the owner of immovable property which is at any time used by
such owner and husband or wife as a dwelling, shall be deemed to be the occupier
thereof;
(b)
where a husband and wife both reside on immovable property and one of them is an
occupier thereof; the other shall also be deemed to be an occupier thereof.
"Owner" in relation to immovable property means (a)
the person in whom is vested the legal title thereto provided that (i)
the lessee of immovable property which is leased for a period of not less
than thirty years, whether the lease is registered or not, shall be deemed to
be the owner thereof;
(ii)
the occupier of immovable property occupied under a service servitude or
right analogous thereto, shall be deemed to be the owner thereof;
(b)
if the owner is dead or insolvent or has assigned his or her estate for the benefit of his
creditors, has been placed under curator ship by order of court or is a company being
wound up or under judicial management, the person in whom the administration of
such property is vested as executor, administrator, trustee, assignee, curator,
liquidator or judicial manager, as the case may be, shall be deemed to be the owner
thereof;
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(c)
if the owner is absent from the Republic or if his address is unknown to the municipality,
any person who as agent or otherwise receives or is entitled to receive the rent in
respect of such property, or
(i)
if the municipality is unable to determine who such person is, the person
who is entitled to the beneficial use of such property.
"Premises” includes any piece of land, the external surface boundaries of which are delineated
on:
(a)
A general plan or diagram registered in terms of the Land Survey Act, (9 of 1927) or in
terms of the Deed Registry Act, 47 of 1937; or
(b)
A sectional plan registered in terms of the Sectional Titles Act, 95 of 1986, which is
situated within the area of jurisdiction of the municipality.
(c)
A register held by a tribal authority.
"Prescribed" means prescribed by this policy and where applicable by Council or the Municipal
Manager.
“Prescribed debt” means debt that becomes extinguished by prescription in terms of the
Prescription Act 68 of 1969.
"Person" means a natural and juristic person, including any department of state, statutory
bodies or foreign embassies.
"Rates" means any tax, duty or levy imposed on property by the municipality.
"Registered owner" means that person, natural or juristic, in whose name the property is
registered in terms of the Deeds Registry Act, no. 47 of 1937.
"Responsible person" means any person other than the registered owner of an immovable
property who is legally responsible for the payment of municipal service charges.
"Service charges" means the fees levied by the municipality in terms of its tariff policy for any
municipal services rendered in respect of an immovable property and includes any penalties,
interest or surcharges levied or imposed in terms of this policy.
“Service delivery agreement” means an agreement between the municipality and an
institution or persons mentioned in section 76(b) of the Local Government: Municipal Systems
Act 32 of 2000.
“Sundry debtor accounts” means accounts raised for miscellaneous charges for services
provided by the municipality or charges that were raised against a person as a result of an
action by a person, and were raised in terms of Council’s policies, bylaws and decisions
“Supervisory authority” means the Executive Committee of the municipality or his or her
nominee, acting in terms of Section 99 of the Municipal Systems Act 32 of 2000.
6
“Tariff” means any rate, tax, duty and levy or fee which may be imposed by the municipality for
services provided either by the municipality or in terms of a service delivery agreement.
“Tariff Policy” means a Tariff Policy adopted by the Council in terms of Section 74 of the Local
Government: Municipal Systems Act 32 of 2000.
"User" means the owner or occupier of a property in respect of which municipal services are
being rendered.
3.
PRINCIPLES
The principles supported in this policy are: (1)
The administrative integrity of the municipality must be maintained at all times.
(2)
This policy must have the full support of Councillors.
(3)
Councillors must have full knowledge of the implementation and enforcement of the
policy.
(4)
The Executive Committee oversees and monitors the implementation and enforcement
of this policy.
(5)
The Municipal Manager implements and enforces this policy.
(6)
The Municipal Manager may delegate the implementation and enforcement of this policy
to the Chief Financial Officer who may in turn delegate duties and responsibilities in
terms of this policy to the Manager Income.
(7)
Consumers must be informed of the contents of this policy.
(8)
Consumers must apply for services from the municipality by the completion of the
prescribed application form.
(9)
Consumers must receive regular and accurate accounts that indicate the basis for
calculating the amounts due. The consumer is entitled to have the details of the account
explained upon request.
(10)
Consumers must pay their accounts regularly by the due date.
(11)
Consumers are entitled to reasonable access to pay points and to a variety of reliable
payment methods.
(12)
Consumers are entitled to an efficient, effective and reasonable response to appeals,
and should not suffer any disadvantage during the processing of a reasonable appeal.
(13)
Debt collection action will be instituted promptly, consistently, and effectively without
exception and with the intention of proceeding until the debt is collected.
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4.
SUPERVISORY AUTHORITY
(1)
The Executive Committee oversees and monitors –
(a)
The implementation and enforcement of the municipality’s credit control and debt
collection policy.
(b)
The performance of the Municipal Manager in implementing the credit control and
debt collection policy.
(2)
The Executive Committee shall at least once a year cause an evaluation or review of
the credit control and debt collection policy to be performed, in order to improve the
efficiency of the municipality’s credit control and debt collection mechanisms, processes
and procedures, as well as the implementation of this policy
(3)
The Executive Committee shall submit a report to Council regarding the implementation
of the credit control & debt collection policy at such intervals as Council may determine.
5.
IMPLEMENTING AUTHORITY
(1)
The Municipal Manager: (a)
Implements and enforces the credit control and debt collection policy.
(b)
Is accountable to the Executive Committee for the enforcement of the policy and
shall submit a report to the Executive Committee regarding the implementation
and enforcement of the credit control and debt collection policy at such intervals
as may be determined by Council.
(c)
Must establish effective administration mechanisms, processes and procedures to
collect money that is due and payable to the municipality.
(d)
Where necessary make recommendations to the Executive Committee with the
aim of improving the efficiency of the credit control and debt collection
mechanisms, processes and procedures.
(e)
Establish effective communication between the municipality and account holders
with the aim of keeping account holders abreast of all decisions by Council that
my affect account holders.
(f)
Establish customer service centers, located in such communities as determined
by the municipal manager.
(g)
Convey to account holders information relating to the costs involved in service
provision, and how funds received for the payment of services are utilised, and
may where necessary employ the services of local media to convey such
information.
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(2)
The Municipal Manager may, in writing, delegate any of the powers entrusted or
delegated to him or her in terms of Council’s credit control and debt collection by-law to
the Chief Financial Officer.
(3)
A delegation in terms of subsection (2) –
(a)
Is subject to any limitations or conditions that the Municipal Manager may impose;
(b)
May authorise the Chief Financial Officer in writing, to sub-delegate duties and
responsibilities to the Manager Income.
(c)
The delegation does not divest the Municipal Manager of the responsibility
concerning the exercise of the delegated power.
(d)
The Chief Financial Officer is accountable to the Municipal Manager for the
implementation, enforcement and administration of this policy, and the general
exercise of his powers in terms of this policy.
(4)
The Manager Income shall be accountable to the Chief Financial Officer for the sections
of this policy delegated to the Manager Income in terms of the MFMA section 82.
6.
UNSATISFACTORY LEVELS OF INDEBTEDNESS
(1)
If the level of indebtedness in a particular ward or part of the Municipality exceeds the
level of the acceptable norm as determined in the Municipality’s budget guidelines, the
supervisory authority (Executive Committee) must, without delay, advise the Councillor
for that ward or part.
(2)
The Councillor concerned:Must without delay convene a meeting of the ward committee, if there is one, or
convene a public meeting and report the matter to the committee or meeting for
discussion and advice; and may make any appropriate recommendations to the
supervisory authority.
7.
APPLICATION FOR THE PROVISION OF MUNICIPAL SERVICES
(1)
A consumer who requires the provision of municipal services must apply for the service
from the municipality.
(2)
The application for the provision of municipal services must be made by the registered
owner of an immovable property.
(3)
The municipality will not entertain an application for the provision of municipal services
from a tenant of a property, or any other person who is not the owner of the property.
9
(4)
The only exception to (3) above is that individuals and businesses with lease
agreements to lease properties from the municipality and government departments will
be allowed to open an account in the name of the lessee of the property
(5)
An agent may with a proxy open an account in the name of the owner.
(6)
The application for the provision of municipal services must be made in writing on the
prescribed application form that is provided by the municipality.
(7)
By completing the prescribed application form for the provision of municipal services the
consumer of services enters into an agreement with the municipality.
(8)
The agreement with the municipality makes provision for the following: (a)
An undertaking by the owner that he or she will be liable for collection costs
including administration fees, interest, disconnection and reconnection costs, and
any other legal costs occasioned by his or her failure to settle accounts by the due
date;
(b)
An acknowledgement by the owner that accounts will become due and payable by
the due date notwithstanding the fact that the owner did not receive the account;
and
(c)
That the onus will be on the owner to ensure that he or she is in possession of an
account before the due date.
(d)
An undertaking by the municipality that it shall do everything in its power to deliver
accounts timeously.
(9)
The application for the provision of municipal services shall be made at least ten (10)
days prior to the date on which the services are required to be connected.
(10)
On receipt of the application for provision of municipal services, the municipality will
cause the reading of metered services linked to the property to be taken on the working
day preceding the date of occupation.
(11)
The first account for services will be rendered after the first meter reading cycle to be
billed following the date of signing the service agreement.
(12)
No re-connection will be considered with any outstanding accounts linked to this specific
stand.
8.
DEPOSITS AND GUARANTEES
(1)
On application for the provision of municipal services the prescribed consumer deposit
shall be paid.
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(2)
A guarantee in lieu of a deposit may be accepted on application for the provision of
municipal services by a business in terms of the prevailing conditions determined by the
Municipal Manager at the time of the application.
(3)
Existing consumers moving to a new address are required to pay the prescribed
consumer deposit on application for the provision of municipal services at the new
address.
(4)
The minimum deposit payable is determined annually by Council and is contained in the
tariff book produced annually.
(5)
The consumer deposit paid on application for the provision of municipal services must
be reviewed at least annually and may be increased or decreased upon written notice
to consumers. The deposit will be the equivalent of at least one months charge for all
municipal services supplied; however this maybe increased if it is determined that the
consumer is a credit risk.
(6)
On termination of the supply of services the amount of the deposit less any payment
due to the municipality will be refunded to an account holder, provided that payments
due are less than the deposit paid, and that the account holder has provided a
forwarding address.
(7)
Section 118 of the Municipal Systems Act is currently being amended so that a person
transferring immovable property must deposit with the municipality the equivalent
amount equal to sixty (60) days value of municipal rates and services.
9.
ACCOUNTS AND BILLING
(1)
Council provides all consumers of municipal services with a monthly consolidated
account for all services rendered.
(2)
The consolidated account can include property rates charges.
Accounts are produced
on a monthly basis in cycles of approximately 30 days.
(3)
All accounts rendered by the municipality shall be payable on the due date as indicated
on the account.
(4)
Account balances which remain unpaid after 30 days shall attract interest on arrears
irrespective of the reason for non-payment. The interest rate is the Prime Bank interest
rate plus 1%.
(5)
All accounts are payable by the due date regardless of the fact that the person
responsible for the payment of the account has not received the account. The onus is
on the account holder to obtain a copy of the account before the due date.
(6)
The municipality bills an owner of a property for the following rates and service
charges:-
11
(a)
Property Rates Charges
(i)
Property rates charges are billed annually or monthly as preferred by
customers. Currently Government Properties and farms are levied
annually
(ii)
Council’s preference is that property rates charges be charged monthly.
Due to historical legislation and the absence of a Property Rates Policy
these charges are being charged monthly and annually.
(iii)
Property rates charges charged annually are billed on the July account of
each year and the due date for the payment of these charges is 30
September of each year where after interest will be added
(iv)
Property rates charges charged monthly are billed on the monthly
accounts and the due date for the payment of the charges is as indicated
on the accounts.
(v)
The tariffs to calculate the property rates charges are determined annually
and approved by the Council and are contained in the tariff book
produced by the municipality.
(b)
Water Charges
(i)
Consumption of water is billed in terms of metered consumption for
conventional meters or through prepayment meters.
(ii)
Monthly accounts are rendered for water consumption and the due date
for payment of the accounts is as indicated on each of the accounts.
(iii)
The tariffs to calculate the water charges are determined annually and
approved by Council and are contained in the tariff book produced by the
municipality.
(c)
Refuse Removal and Sewer Charges
(i)
Refuse removal and sewer are billed in terms of a fixed monthly tariff.
(ii)
Monthly accounts are rendered for refuse removal and sewer and the due
date for payment of the accounts is as indicated on each of the accounts.
(iii)
The tariffs to calculate the refuse removal and sewer charges are
determined annually and approved by Council and are contained in the
tariff book produced by the municipality.
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(d)
Sundry Debtor Accounts
(i)
Sundry debtor accounts are raised for miscellaneous charges for services
provided by the municipality, or charges that are raised against a debtor
as a result of an action by a debtor or person which necessitate a charge
to be raised by Council against the debtor or person in terms of Council’s
policies, by-laws and decisions.
(ii)
The sundry debtor account is included in the monthly consolidated
account produced by the municipality.
(7)
Final Accounts
On receipt of an application for termination of services the final readings of metered
services will be taken, the accounts finalised, the consumer deposit will be appropriated
and if a debit balance remains the balance will be payable by the consumer and if a
credit balance remains the balance will be refunded to the consumer, on condition that
the consumer has provided the municipality with a forwarding address.
(8)
Due Date
The due date for the payment of accounts in the various areas of the Greater Tubatse
Municipality is the date as indicated on the account.
10.
METERING OF MUNICIPAL SERVICES
(1)
The municipality may introduce various metering equipment and may encourage
consumers to convert to a system which is preferred by the Council when Council
considers this to be beneficial to its functioning and operations.
(2)
Council’s preferred metering system to measure water is the conventional water
metering system for domestic consumers and businesses or through prepayment
meters.
(3)
Water consumption is measured with credit water meters.
(4)
The following applies to the reading of credit meters: (a)
Credit water meters are read at in cycles of approximately 30 days.
(b)
If for any reason the credit water meters cannot be read, the municipality will
render an account based on estimated consumption.
(c)
The account based on estimated consumption will be adjusted in the subsequent
account based on the actual consumption.
(d)
The consumer is responsible to ensure access to metering equipment for the
purpose of obtaining meter readings for billing purposes.
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(e)
Consumers can, for reasons of non-accessibility to their properties by meter
readers, provide the municipality with monthly meter readings for billing purposes,
provided that an audit reading can be obtained by the municipality once every six
months and provided that a final reading can be obtained should the consumer
vacate the property.
(f)
If any calculation, reading or metering error is discovered in respect of any
account rendered to a consumer –
(i)
the error shall be corrected in the subsequent account,
(ii)
any such correction shall only apply in respect of an account for a period
of three years preceding the date on which the error in the account was
discovered,
(iii)
the correction shall be based on the tariffs applicable during the period,
and
(iv)
the application of this section shall not prevent a consumer from claiming
overpayment for any longer period where the consumer is able to prove
the claim in a court of law.
(g)
When a consumer vacates a property and a final reading of the meter is not
possible, an estimation of the consumption may be made and the final account
rendered accordingly.
11.
PAYMENT OF ACCOUNTS
(1)
All accounts rendered by the municipality are due and payable on or before the due
date as indicated on the account.
(2)
All payments, whether made by cash, stop order, electronic payments or payments
made through agents must be receipted by the municipality by the close of business on
the due date. Cheques will be accepted as payment of an account (except in the case
of payment to obtain a clearance certificate as provided for in terms of Section 118 of
the Municipal System Act in which case payment must be made in cash or a bank
guarantee cheque or a cheque from the trust account of an attorney). Where a cheque
has been dishonoured the person issuing the cheque shall not be allowed to pay by
cheque in future.
(3)
Accounts rendered by the municipality can be paid at any municipal cashier office and
any other pay point as determined by the Municipal Manager from time to time.
(4)
The payment methods and facilities supported by the municipality can be used to make
payments on accounts.
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(5)
Payments received in respect of rates and service charges will be allocated by the
municipality entirely within its discretion, on the account of the debtor.
(6)
Part payment received on an account shall be allocated firstly to reduce any penalty
charges that may have accrued on the account ,then Assessment Rates ,then Refuse,
then sewerage and lastly water
(7)
12.
An official receipt issued by the municipality will be the only proof of payments made.
INTEREST ON ARREAR DEBT
(1)
Account balances which remain unpaid after 30 days after the due date shall attract
interest irrespective of the reason for non-payment. The interest rate shall be the Prime
Bank interest rate plus 1%.
(2)
(3)
The following categories of arrear debt shall not attract interest on arrears: (a)
Indigent debt
(b)
Closed accounts
(c)
Deceased estates
(d)
Insolvent estates
(e)
Debtors under administration (administration portion only)
Interest on arrear debt shall be calculated for each month for which such payment
remains unpaid and part of a month shall be deemed to be a month.
(4)
Interest shall be charged on any outstanding amounts in respect of which an agreement
had been concluded for the payment by way of installment thereof.
13.
ENQUIRIES AND APPEALS
(1)
Any aggrieved person may address a grievance or query regarding charges for
municipal services to the Chief Financial Officer in writing or may visit any customer
care office provided by the municipality.
(2)
Every consumer has the right to ask and to be provided with a clear explanation as to
the services being charged and a breakdown of all amounts shown on their account.
(3)
The aggrieved person shall clearly state the basis of his or her dissatisfaction and the
desired resolution.
(4)
The lodging of an inquiry shall not relieve the aggrieved person of the responsibility to
settle his or her account. An interim payment similar to an average account must be
paid by the due date pending finalisation of the enquiry.
(5)
The municipality will respond to all inquiries from consumers in writing within twenty
days from the lodging of the enquiry.
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(6)
The Manager Income will keep custody of the Enquiries and Appeals Register and will
carry out a weekly check on all enquiries and appeals yet to be resolved.
14.
DEBT COLLECTION
(1)
The Chief Financial Officer is authorised to institute agreed upon debt collection
mechanisms without exception and with the intention to proceed until the debt is
collected.
(2)
All accounts rendered by the municipality shall be paid on the due date as indicated on
the account.
(3)
Account balances which remain unpaid after 30 days of the due date shall attract
interest irrespective of the reason for non-payment.
(4)
Account balances which remain unpaid after the due date will be subject to debt
collection action.
(5)
Debt collection action will be taken on the total amount outstanding on the account after
the due date. The total amount outstanding includes property rates, refuse, sewer, water
and sundry debtor charges.
(6)
The debt collection action to be taken will be as follows: (a)
Disconnection of water supply (restriction of flow)
(i)
The municipality shall disconnect the water supply to a property if the
account rendered by the municipality is not paid by the due date as
indicated on the account .
(ii)
Credit water meters will be disconnected for the non-payment of municipal
accounts.
(iii)
Disconnection of water supply will be for the total amount outstanding on
the account, not just for the water portion of the account.
(iv)
Disconnection of water supply for the non-payment of an account will be
during the 30 day period following the due date.
(b)
Recovery of Rates in Arrears from Tenants, Occupiers, and Agents
(i)
The municipality will utilise the Property Rates Act 2004 sections 28 and 29
to recover rates unpaid by owners where appropriate.
(ii)
The municipality may recover the amount in whole or part from a tenant or
occupier of a property despite any contractual obligation to the contrary on
the tenant or occupier. The municipality may recover an amount only after
the municipality has served a written notice on the tenant or occupier.
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(iii)
The amount the municipality may recover from the tenant or occupier of a
property is limited to the amount of rent or other money due and payable,
but not yet paid, by the tenant or occupier to the owner of the property.
(iv)
Any amount the municipality recovers from the tenant or occupier of the
property must be set off by the tenant or occupier against any money owed
by the tenant or occupier to the owner.
(v)
The tenant or occupier of a property must, on request by the municipality,
furnish the municipality with a written statement specifying all payments to
be made by the tenant or occupier to the owner of the property for rent or
other money payable on the property during a period determined by the
municipality.
(vi)
The municipality may, despite the Estate Agents Affairs Act 1976, recover
the amount due for rates on a property in whole or in part from the agent of
the owner, if this is more convenient for the municipality.
(vii)
The municipality may recover the amount due for rates from the agent of
the owner only after it has served a written notice on the agent.
(viii) The amount the municipality may recover from the agent is limited to the
amount of any rent or other money received by the agent on behalf of the
owner, less any commission due to the agent.
(ix)
The agent must, on request by the municipality, furnish the municipality with
a written statement specifying all payments to be made by the tenant or
occupier to the owner of the property for rent or other money payable on the
property during a period determined by the municipality.
(x)
The municipality must provide an owner of a property in its jurisdiction with
copies of accounts sent to the occupier of the property for municipal
services supplied to the property if the owner requests such accounts in
writing from the municipality.
(d)
Handover of debt to debt collectors
(i)
Debt that could not be collected by the disconnection of water supply to a
property and that are 60 days old may be handed over to debt collectors.
(ii)
Handover to debt collectors is a pre-legal action and if the debt collectors
are unsuccessful in collecting the debt, the debt may be handed over to
attorneys for legal collection.
(iii)
Only the Municipal Manager or his delegated official will hand debt over to
attorneys for legal collection.
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(iv)
The following types of debt will be handed over to the debt collectors: 
Debt that is 60 days and older. Government debt, when handed over,
must be dealt with in accordance with applicable legislation.

Debt for which no payment arrangements were made.

The amount of the debt per debtor to be handed over is the amount
that will be determined from time to time.
(v)
The following types of debt will not be handed over to debt collectors.

Debts of indigent debtors that are registered as indigent at the date of
handover.
(vi)

Debt that is being paid off as per an arrangement with the debtor.

A debt that has not been under a query for more than two months.
The process of collecting debt by debt collectors includes -.

The phoning of debtors.

Sending out demand letters.

Making arrangements with debtors to pay off debt in terms of the
Council’s credit control and debt collection policy.

(e)
Making follow-up contact with debtors on unpaid arrangements.
Handover of debt to Attorneys for legal collection
(i)
Debt that could not be collected by the debt collectors and debt that
requires urgent legal attention will be handed over to attorneys for legal
collection.
(ii)
The following types of debt will be handed over to attorneys: 
Debt that is 120 days and older.

The amount of the debt per debtor to be handed over is the amount
that will be determined from time to time.

(iii)
Debt for which no payment arrangements were made.
The following types of debt will not be handed over to attorneys:
Debt of approved indigent debtors that has not yet been written off by
the council.

Debt that is being paid off as per an arrangement with the debtor.

A debt that has not been under a query for more than two months.
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(iv)
The process of legal collection includes:
Final demands for payment to debtors.

Emolument attachment orders on debtor’s salaries.

Summons issued for debt to be paid.

Default judgment be obtained against the debtor.

The attachment of moveable properties and sale in execution of
moveable property

The attachment of immoveable property and the sale of immoveable
property.
(f)
Withholding or offsetting grants-in-aid.
The municipality provides annual grants-in-Aid to Institutions on application. If an
institution is in arrear with its services account, then the municipality will withhold
the grant-in-aid or the grant-in-aid will be off set against the arrear debt with the
municipality.
(g)
Section 118 of the Local Government: Municipal Systems Act No 32 of 2000.
(i)
The municipality will issue a certificate required for the transfer of
immovable property in terms of Section 118 of the Local Government:
Municipal Systems Act No 32 of 2000, which is lodged with the municipality
in the prescribed manner. This is subject to all amounts that became due in
connection with that property for municipal service fees, surcharges on
fees, property rates and other municipal taxes, levies and duties during the
two years preceding the date of application for the certificate have been
fully paid.
(ii)
Debt older than two years on the property irrespective of whether the owner
of the property accumulated the debt will also have to be paid by the owner
before the transfer of the property can be affected.
(iii)
If the owner refuses to pay the debt which is older than two years then the
municipality will apply to a competent Court for an order in the following
terms: 
In the case where there is no judgment debt, for an order staying
transfer of the property pending the finalisation of a civil action to be
instituted against the person who is in law liable for the payment of the
outstanding debt.
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
In the case where there is already a judgment for the payment of the
amount, an order that the judgment debt be paid out of the proceeds of
the sale, before the mortgage debt is settled.

The above action must be taken before the property is transferred as the
statutory lien created by Section 118(3) of the Act only endures until the
property has been transferred and in terms of Section 118(5) of the Act
the new owner of the property cannot be held liable for the debt that
became due before a transfer of a residential property took place.
(h)
Other debt collection methods
The debt collection methods mentioned in paragraph (a) to (g) above are not an
exhaustive list of methods that can be applied to collect debts and any other
methods that can be initiated will be implemented with the approval of Council.
(7)
Debt Collection Costs
Any costs, which include collection costs, charges, disbursements and legal costs
relating to any of the debt collection methods applied to collect the debt will be debited
to the account of the defaulting debtor.
15.
ARRANGEMENTS TO PAY ARREAR DEBT
Arrangements to Pay Outstanding and Due Amounts in Consecutive Installments –
Residential Households
(1)
One of the key objectives of debt collection is to encourage debtors to start paying their
monthly accounts in full. In addition it is also necessary to ensure that arrear debt is
addressed. The current average balances on consumer accounts necessitates that
innovative ideas be implemented to encourage consumers to pay off their arrears. At
the same time it is also of utmost importance that regular payers not be discouraged
through the implementation of any possible incentives.
(2)
The main aim of an agreement will be to promote full payment of the current account
and to address the arrears on a consistent basis.
(3)
A debtor may enter into a written agreement with the Municipality to repay any
outstanding and due amount to the Municipality under the following conditions:(a)
The outstanding balance, costs and any interest thereon shall be paid in regular
and consecutive monthly installments;
(b)
The current monthly amount must be paid in full; and
(c)
The written agreement has to be signed on behalf of the Municipality by a duly
authorised officer.
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(4)
In order to determine monthly installments a comprehensive statement of assets and
liabilities of the debtor must be compiled by a treasury official. To ensure the continuous
payment of such arrangement the amount determined must be affordable to the
consumer, taking into account that payment of the monthly current account is a
prerequisite for concluding an arrangement.
(5)
Implementation of the following principles (as a once off initiative) could enhance the
success of debt collection to a great extent:-
(a)
Households earning between R2401 and R10 000 gross per month
(i)
Capital arrears will be written off on the following basis (for every one rand
that is paid one rand will be written off from the provision for bad debt).
Upon paying the total capital owed all the interest accumulated will be
written off immediately from the provision for bad debt.
(ii)
Where arrangements are made to pay off the arrear amount in installments,
such an arrangement should be honoured for at least a twelve month
consecutive period where after arrears will be written off.
(b)
Households earning R10 001 and more gross per month
(i)
Where a debtor pays 100% on his/her capital arrear debt, all the interest
accumulated will immediately be written off from the provision for bad debt.
(ii)
Where arrangements are made to pay off the arrear amount in installments,
such an arrangement should be honoured for at least a twelve month
consecutive period where after interest will be written off on a monthly basis
on a rand for rand basis (for every one rand capital that is paid one rand
interest will be written off until such time that all the interest has been
written off from the provision for bad debt).
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(6)
A consumer who cannot pay their arrear debt may enter into an arrangement to pay the
account over an extended period of time.
(7)
During the time of the debt collection process, but before the debt is handed over to the
attorneys a consumer may enter into an arrangement to pay off arrear debt.
(8)
No arrangements outside of the provisions of this policy will be entertained by attorneys
on a debt that has been handed over for legal collection without prior approval of the
Chief Finance Officer.
(9)
The municipality will entertain only one arrangement with a consumer to pay off arrear
debt.
(10)
The consumer by signing the arrangement agreement to pay off arrear debt
acknowledges the following: (a)
The debt is owed to the municipality.
(b)
That on default of the arrangement agreement, interest on arrears will be charged
on the amount due, water supply will be disconnected to the property of the
consumer or the consumer will be blocked from the purchase of water on the
prepayment system, and legal proceedings will be instituted to collect the debt.
(c)
That the consumer will be liable for all costs, which includes legal costs incurred
to collect the debt.
(11)
Arrangements by businesses
(a)
At the date of the arrangement a minimum of 50% of the capital arrear debt must
be paid immediately.
(b)
After the payment of 50% of the capital arrear debt, 50% of the interest
accumulated will be written off from the provision for bad debt.
(c)
The balance of the debt which includes the capital amount and interest must be
paid over a 6 to 12 month period on an interest free basis provided payments are
made monthly by the due date.
(d)
The total monthly installment must include the current monthly charges plus the
amount to pay off arrear debt.
(e)
Arrangement by businesses to pay off arrear debt will only be entertained for debt
on which debt collection actions have been taken and which actions are in an
advanced stage.
(f)
Failure to maintain the arrangement will result in interest being reversed and full
debt collection being implemented, with no possibility of reprieve.
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(g)
Any arrangement outside of the foregoing must be approved by the Municipal
Manager. This function cannot be delegated.
16.
INDIGENT DEBTORS
(1)
An account holder (consumer) may apply, in the prescribed manner, to be regarded as
an indigent debtor as defined in the Indigent Policy approved by the council.
(2)
Any person who has been declared indigent shall be entitled to indigent subsidies for
basic services on a basis determined by Council from time to time.
(3)
The approved account holder shall remain responsible for any outstanding amount at
the date of application as well as for future charges.
(4)
The arrears on the accounts of households, approved as indigent, will be submitted to
Council to be written off in full (including any interest charged) after the expiry of six
months being registered as an indigent. This submission will only be valid as a once-off
exercise after approval and will not be applicable for future consumption in excess of the
approved subsidy accumulated.
(5)
Indigent consumers with credit water meters are required to pay their current monthly
account, which is the amount after the indigent subsidy has been deducted, every
month by the due date.
17.
DEBT OF ABSCONDED OWNERS
(1)
The occupant of the property must sign an agreement in which the occupant agrees to
pay all property rates and service charges that are to be raised on the property of the
absconded registered owner’s property.
18.
STAFF AND COUNCILLORS – PAYMENT OF ARREARS
(1)
All staff joining the municipality must within thirty (30) days sign an agreement to pay
arrears.
(2)
All existing staff and councillors who have not entered into an agreement to pay arrears
must do so within thirty (30) days of the approval of this policy by council.
(3)
The repayment period for both councillors and staff is not to exceed twelve (12) months.
(4)
All agreements with councillors must not exceed the expiry date of the term of office.
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19.
ADMINISTRATION ORDERS – PAYMENT OF ARREARS
(1)
A person can apply for the administration of its estate in terms of section 74 of the
Magistrates Court Act, 1944.
(2)
On notification that the order has been granted, Council will manage the debt that is part
of the administration order separately to the current account.
(3)
The debtor will be responsible for the payment of the current monthly account and if the
debtor defaults on the payment of the account, debt collection action will be
implemented.
20.
WRITE OFF OF IRRECOVERABLE DEBT
(1)
The objective to write off irrecoverable debt is to have a debt book that does not reflect
irrecoverable debt.
(2)
For this purpose Council should adopt and implement a write off policy to formalise the
processes for writing off such debts.
21.
CERTIFICATES REQUIRED FOR TENDERS
(1)
A person or an institution reacting to a tender published by the municipality or wishing to
enter into a contract to either provide services or goods to the municipality must
produce a certificate, on the prescribed form, which states that regular payment of rates
and services accounts are maintained and that the account is currently up to date.
(2)
A person who fails to provide such a certificate shall be disqualified from the tendering
process.
(3)
A person who has an existing arrangement with the municipality for the payment of
arrears shall be exempt from (1) and (2) to the extent of the arrears.
22.
THEFT AND FRAUD
(1)
The municipality does not condone theft and fraud of municipal services and will
monitor the service networks for signs of tampering or irregularities.
(2)
The Council may approve specific penalties and distinguish between cases of
vandalism and theft.
(3)
Subsequent acts of tampering may lead to a refusal to supply certain services for
determined periods.
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23.
REPORTING AND PERFORMANCE MANAGEMENT
(1)
The Chief Financial Officer shall report monthly to the Municipal Manager in a suitable
format to enable the Municipal Manager to report to the Executive Committee as
supervisory authority in terms of section 99 of the Systems Act, read with section
100(c).
(2)
The Executive Committee as Supervisory Authority shall, at intervals of three (3)
months, report to Council as contemplated in section 99(c) of the Systems Act.
(3)
This report shall contain particulars on cash collection statistics, showing high-level debt
recovery information (numbers of customers; enquires; arrangements; default
arrangements; growth or reduction of arrear debt).
(4)
Where possible, the statistics should ideally be divided into wards, business (commerce
and industry), domestic, state, institutional and other such divisions.
(5)
If in the opinion of the Chief Financial Officer, the municipality will not achieve cash
receipt income equivalent of the income projected in the annual budget as approved by
Council, the Chief Financial Officer will report this with motivation to the Municipal
Manager who will, if in agreement with the Chief Financial Officer, immediately move for
a revision of the budget according to realistically realisable income levels.
24.
INCOME COLLECTION TARGET
(1)
Income collection targets will be set by the Chief Financial Officer to achieve the
optimum debt collection ratio i.e. receipt / billing, that will satisfy the municipalities IDP
objectives.
25.
PROPERTY MANAGEMENT LEASES
(1)
The procedure for the recovery of arrears on leases will be in accordance with the
conditions contained in the relevant lease contract.
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TEMPORARY WORKERS
(1)
Where the municipality provides temporary employment to members of the community
who are in arrears with payments for municipal rates and services they will be required
to enter an agreement to pay 20% of their gross remuneration towards these arrears of
debt.
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27.
PROVISION FOR BAD DEBT
(1)
The provision for bad debt is based on the likelihood of non-payment.
In order to
determine this likelihood of payment or not, each debtor needs to be evaluated
separately and categorised based on the degree of payment expectancy.
(2)
The evaluation of a debtor is firstly based on payment history, prior to the effective date
of provision and secondly on the payment history during the period immediately after
the effective date of provision.
(3)
The evaluation process is discussed below:-
(a)
Historical review
i.
Likely payers - All debtors, regardless of age or amount, who have made
payments during each of the three payment periods/months prior to the
effective date of provision, will be categorised as debtors likely to pay
and no provision for bad debts will be made on these accounts.
ii.
Possible payers – All debtors, regardless of age or amount, who have
made at least one payment within the three payment periods/months
prior to the effective date of provision, will be categorised as possible
payers and no provision for bad debts will be made on these accounts.
iii.
Likely not to pay – All debtors, regardless of age or amount, who have
not made any payments during any of the three payment periods/months
prior to the effective date of provision, will be categorised as debtors
unlikely to pay and the full amount of the outstanding debt will be
provided under the provision for bad debts.
(b)
Current review
i.
Likely payers – All debtors, regardless of the categorisation under the
historical review, who have made payments during each of the payment
periods/months after the effective date of provision, will be categorised as
debtors likely to pay and no provision for bad debts will be made on
these accounts.
ii.
Possible payers – All debtors previously categorised under A or B, who
has made payments during any of the payment periods/months after the
effective date of provision, will be categorised as possible payers and
no provision for bad debts will be made on these accounts.
26
iii.
Likely not to pay (1) – All debtors previously categorised under C, who
have not made payments during each of the payment periods/months
after the effective date of provision, will still be categorised as debtors
unlikely to pay and the full amount outstanding on their accounts will be
iv.
Likely not to pay (2) –All debtors previously categorised under A or B,
who has made no payments during any of the payment periods/months
after the effective date of provision, will also be categorised as debtors
unlikely to pay and the full amount outstanding on their accounts will be
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UNALLOCATED RECEIPTS
(1)
It happens that because of wrong reference numbers or no reference number at all, that
some direct banking can not be allocate to the right vote or debtor account.
(2)
If the Revenue Section tried there utmost best without success it will be advertised
during may of each year in the local newspapers requesting all debtors to come to the Council if they
did make any payments that do not reflect on there accounts. This will be opened for 30 days.
(3)
After this window period the unallocated receipts up to the end of June of the previous
year, with the approval of the CFO, will be taken to the accumulated surplus account of the
Municipality. A list with all this amounts taken to the accumulated account will be attached to the
journal for audit purposes.
(4) Even if a person bring later a proof of his/her payment it can still be remove from the
accumulated surplus account and credited to the debtors account
30.
PUBLICATION OF POLICY
(1)
The Municipal Manager shall, within 14 days from the date of adoption of this Policy by
the Council, by public note draw the attention of the public to its broad contents and
method of application.
31.
APPLICATION OF THE POLICY
(1)
The Council reserves the right to differentiate between different categories of
consumers, debtors, services or service standards when applying this Policy. The
Council will on application of the credit control policy avoid discrimination as forbidden
by the Constitution unless it is established that the discrimination is fair as allowed by
the Constitution.
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32.
IMPLEMENTATION AND REVIEW OF THIS POLICY
(1)
This policy shall be implemented once approved by Council. All future investments must
be made in accordance with this policy.
(2)
In terms of section 17(1)(e) of the MFMA this policy must be reviewed on annual basis
and the reviewed policy tabled to Council for approval as part of the budget process.
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GREATER TUBATSE
LOCAL MUNICIPALITY
INVESTMENT OF FUNDS
POLICY & PRINCIPLES
Policy to be Implement 1 July 2012
GREATER TUBATSE MUNICIPALITY
PRINCIPLES AND POLICY ON INVESTMENT OF FUNDS
1.
INTRODUCTION
1.1 As custodians of public funds, the Council has an obligation to see to it that cash
resources are managed as effectively as possible. Council has a responsibility to
invest public funds with great care and are liable to the community in that regard.
1.2 The investment policy should be aimed at gaining the highest possible return without
undue risk during those periods when funds are not needed. To bring this about, it is
essential to have an effective cashflow management program.
1.3 This policy has been compiled in accordance with the Local Government: Municipal
Finance Management Act (MFMA), Act no 56 of 2003 and the Investment and PPP
Regulations for the MFMA published in Government Gazette 27431 dated 1 April
2005. Where this policy is contrary to other legislation, such legislation will override
this policy. It is an explicit responsibility of the Municipal Manager to bring such
conflicts immediately to the attention of the Council once he/ she becomes aware of
such conflicts and to propose changes to this Policy to eliminate such conflicts.
2.
DELEGATION OF POWERS
2.1 This policy should be applied with due observance of the Municipality’s policy with
regard to delegated powers. Such delegations refer to delegations between the
Municipal Manager and other responsible officials as well as between the Council
and the Executive Committee and the Council and the Municipal Manager. All
delegations in terms of this policy must be recorded in writing.
2.2 According to the Municipal Finance Management Act, the Municipal Manager is the
accounting officer of the Municipality and therefore all designated officials are
accountable to him/ her. The Municipal Manager is therefore accountable for all
transactions entered into by his/ her designates.
2.3 The overall responsibility of investments lies with the Municipal Manager. However,
the day to day handling of investments should be the responsibility of the Chief
Financial Officer or his/her delegate.
1
2.4 All investment documents will require two signatories, namely the Municipal Manager
and the Chief Financial Officer or their delegated signatories. In this regard,
specimen signatures must be signed with all financial institutions with which the
Municipality deals.
3.
3.1 The purpose of this policy is to ensure that investment of surplus funds forms part of
the financial management procedures of the Greater Tubatse Local Municipality and
to ensure that prudent investment procedures are applied consistently.
4.
EFFECTIVE CASH MANAGEMENT
4.1
Cash Management Plan
4.1.1 Adequate and efficient cash management is one of the main functions of the
Chief Financial Officer. It is therefore imperative that a cash management plan be
established and adhered to at all time. Sound cash management includes: 
Collecting revenue when it is due and banking it promptly;

Making payments, including transfers to other levels of government and nongovernment entities, no earlier than necessary, with due regard for efficient,
effective and economical programme delivery and the government’s normal
terms for account payments as well as within legislative requirements;

Avoiding pre-payments for goods or services (i.e. payments in advance of
the receipt of goods or services), unless required in terms of contractual
arrangements with the supplier;

Accepting discounts to effect early payment only when the payment has
been included in the monthly cashflow estimates prepared by the
Municipality;

Pursuing debtors with appropriate sensitivity and rigour to ensure that
amounts receivable by the Municipality are collected and banked promptly;

Timing the inflow and outflow of cash to ensure that significant cash outflows
only occur when there is sufficient cash in the Municipality’s bank account;
2

Accurately forecasting the Municipality’s cashflow requirements;

Taking any action that avoids locking up money unnecessarily and
inefficiently, such as managing inventories to the minimum level necessary
for efficient and effective programme delivery and selling surplus or under
utilised assets.
4.2
Efficient Cash Collection Procedures
4.2.1 All monies due to the Municipality must be collected as soon as possible and
banked on a daily basis. Cash left in the safe can pose a security risk, could
necessitate additional insurance coverage and does not earn any interest.
Special deposits should be arranged for the larger amounts received, to make
sure that these are banked on the same day they are received.
4.2.2 It is essential that all amounts owed to the Municipality be levied by way of a
debit in the applicable debtors system. A well managed debtor and banking
control system is the proper measure for ensuring that monies owed to the
Municipality are timeously received and banked. It is also important to review the
debt collection performance by regularly comparing monies presently owed to the
Municipality in relation to the total income as well as to the situation in previous
financial years, in order to determine whether the debt collection is deteriorating
or improving.
4.3
Payment to Creditors
4.3.1 Another aspect of effective cash management is adequate control over the timing
and payment of creditors accounts. To reduce bank costs with regard to cheque
payments it is essential to limit the payment of creditors to one payment per
creditor per month, if possible, and to consider making use of electronic transfer
facilities if these are available, subject to strict control measures.
4.3.2 When considering the time to pay a creditor, proper consideration must be given
to the conditions of credit/ terms of payment offered. In cases where a cash
discount is offered for early settlement the discount, if the relevant time scale is
taken into account, will in most cases be more than any investment return from
temporarily investing the funds and if offered, they should be properly considered
and utilised.
3
4.3.3 The normal conditions of credit/ terms of payment offered by suppliers should
also be considered and utilised to the full by paying on due date and not earlier.
4.4
Management of Investment in Inventories
4.4.1 Cash management can be improved by ensuring that adequate stock control is
exercised over all goods in store. The inventory levels in any stores system have
to be reviewed continually in the light of annual contracts from local suppliers.
Only essential inventory levels are to be maintained in the case of inventory items
that are readily available.
4.4.2 Inventory items held in stock for a long period of time is an unproductive asset to
which an opportunity cost can be attached. In addition, inventory items held in
stock for long periods of time could become redundant or obsolete. It is
advisable, therefore, to dispose of outdated inventory items on a regular basis,
thus recovering at least a part of their costs.
4.5
Investment of Surplus Cash
4.5.1 Before any money can be invested, the Chief Financial Officer, or his/her
delegate, has to determine whether there will be surplus funds available. The
term of investment should also be investigated in relation to projected cash
outflows. Prior to making investments for any fixed term, it is essential that
cashflow estimates be compiled for at least the next twelve months.
4.5.2 When compiling monthly cashflow estimates it is essential that the Chief
Financial Officer is aware of all expected cashflow and when it is to take place, as
well as the timing with regard to cash outflows as far as both the operational and
the capital budgets are concerned.
4.5.3 By utilising the available information and expertise, the Chief Financial Officer
can assess the timing with regard to the applicable investment policy accordingly.
Daily cashflow estimates will provide for daily call investments and investment
withdrawals, whereas long-term investments need to be based on projections
further into the future.
4
5.
LEGAL REQUIREMENTS
5.1 The way in which surplus funds and other monies of local authorities can be
invested, is regulated in terms of the Municipal Finance Management Act, and the
National Framework to be determined by the Minister of Finance with the
concurrence of the Cabinet member responsible for Local Government (see
paragraph 1.3).
5.2 The Municipal Finance Management Act requires the Municipality to establish an
appropriate and effective cash management and investment policy in accordance
with any framework that may be prescribed by the Minister, with the concurrence of
the Cabinet member responsible for Local Government.
5.3 A bank, insurance company or other financial institution which, at the end of a
financial year holds, or at any time during a financial year held, an investment for the
Municipality must: 
Within 30 days after the end of that financial year, notify the Auditor-General, in
writing, of that investment, including the opening and closing balances of that
investment, in that financial year; and

Promptly disclose information regarding the investment when so requested by
the National Treasury or the Auditor-General.
5.4 A bank where the Municipality at the end of the financial year holds a bank account,
or held a bank account at any time during a financial year, must: 
Within 30 days after the end of that financial year, notify the Auditor-General, in
writing, of such bank account, including
the type and number of the account; and

the opening and closing balances of that bank account in that financial
year.

Promptly disclose information regarding the account when so requested by the
National Treasury or the Auditor-General.
5
6.
INVESTMENT ETHICS
The following ethics apply when dealing with financial institutions and interested
parties:
6.1 The Municipal Manager and in the final instance the Chief Financial Officer is
responsible for the investment of funds, and have to steer clear from outside
interference, regardless of whether such interference comes from individual
Councillors, agents or any institution.
6.2 Under no circumstances may he/ she be held susceptible to coercive measures of
any description. No member of staff may accept any gift other than something that is
so small that it cannot possibly be seen as anything but a sign of goodwill,
regardless of whether such gift influences him or her in his or her work or is intended
to do so.
6.3 The Chief Financial Officer or his/her delegate must act according to their own
discretion and should report any serious cases, i.e. offers of a personal commission
or payment in kind, etc, to the Council. Discretion should be the order of the day, and
excessive gifts and hospitality must be refused and avoided.
6.4 Interest rates offered should never be divulged to another institution.
7.
INVESTMENT PRINCIPLES
7.1
Limited Exposure to a Single Institution
7.1.1 Money, especially large sums of money, must be invested with more than one
institution in order to limit the risk exposure of the Municipality. Subject to
paragraph 8.6 below, not more than 50% of the available funds should be placed
with a single institution. In this case, it should be noted that a group of financial
institutions would be treated as individual institutions.
7.1.2 Where legislation allows, the Municipality must try to plan the distribution of its
investments to cover more than one investment category.
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7.2
Risk and Return
7.2.1 It should be accepted as general principle that the larger the return, the greater
the risk will be. Investments may not be undertaken with a view to speculation
and must be governed by the following investment objectives, in order of priority:
7.3

Preservation and safety of principal;

Liquidity; and

Yield.
Borrowing Money for Reinvestment
7.3.1 The Municipality shall not borrow any money for investment purposes as this is
considered as speculation with public funds. Furthermore, investments should not
be made where Council is utilising an overdraft facility unless in accordance with
applicable legislation.
7.4
Cash in the Bank
7.4.1 Where money is kept in current accounts, it is possible, as well as being an
expedient practice, to bargain for more beneficial rates with regard to deposits,
for instance call deposits. These rates can be increased by fixed term
investments. The overriding principle is to limit the cash in the current account to
the absolute minimum but always taking into account the cash management plan
and monthly cashflow estimates.
7.5
Employees and Councillors Benefiting from Investments
7.5.1 No employee or Councillor of the Municipality or their family may under any
circumstances whatsoever on his or her own behalf or on behalf of any other
person whether directly or indirectly, stipulate, claim or receive any consideration
of whatever nature in connection with an investment made.
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7.6
Reporting Requirements
7.6.1 There shall at all times be transparency and accountability in respect of every
investment made and of the Municipality’s investment portfolio. In this regard, the
Municipal Manager must within 10 days of the end of each month, as part of the
section 71 report required by the MFMA, submit to the Executive Committee a
report describing in accordance with generally recognised accounting practise the
investment portfolio of the municipality as at the end of the month. The report
must set out at least:
The market value of each investment as at the beginning of the reporting
period;

Additions and changes to the investment portfolio during the reporting period;

The market value of each investment as at the end of the reporting period;
and

8.
Fully accrued interest or yield for the reporting period.
GENERAL INVESTMENT PRACTICE
8.1
General Principles
8.1.1 After determining whether cash is available for investment and fixing the
maximum term of investment, the Chief Financial Officer has to consider the way
in which the investment is to be made. Because rates can vary according to
money market perceptions with regard to the term of investment, quotations for
fixed deposits should be requested telephonically for a period within the
limitations of the maximum term.
8.1.2 All telephonic quotations must be recorded on a schedule and the accepted
quotation must be confirmed in writing before the actual investment is made. The
same procedure must be followed before any re-investment is made with the
same institution.
8.1.3 Where a fixed deposit is made at an institution at a lower rate than other
quotations, reasons must be recorded by the Chief Financial Officer and reported
to Council as part of the monthly financial report by the Chief Financial Officer.
8
8.2 Payment of Commission
8.2.1 The financial institution where a fixed deposit is made must issue a certificate
with regard to each investment when the investment is made, in which it states
that the financial institution has not or will not pay any commission and has not or
will not grant any other benefit for obtaining such investment to any employee or
Councillor of the Municipality or their family or an agent or go-between, or to any
person nominated by such agent or go-between, except where the Council has
decided to appoint a go-between/ agent/ consultant and the fee/ commission has
been decided and approved by the Council before any investment is made.
8.2.2 In the case of long-term securities at Insurance Companies any payment of fees/
commission to any go-between/ agent/ consultant must be clearly stated on the
application form and approved by Council before any investment is made.
8.3
Registered Financial Institutions
The Municipality may only invest in the following instruments or investments:-
8.3.1 Securities issued by the National Government;
8.3.2 Listed corporate bonds with an investment grading rating from a nationally or
internationally recognized credit rating agency;
8.3.3 Deposits with banks registered in terms of the Banks Act, 1990 (Act No 94 of
1990);
8.3.4 Deposits with the Public Investment Corporation as contemplated by the Public
Investment Commissioners Act, 1984 (Act No 45 of 1984);
8.3.5 Deposits with the Corporation for Public Deposits as contemplated by the
Corporation for Public Deposits Act, 1984 (Act No 46 of 1984);
8.3.6 Banker’s acceptance certificates or negotiable certificates of deposit of banks
registered in terms of the Banks Act, 1990 (Act No 94 of 1990);
8.3.7 Guaranteed endowment policies with the intention of establishing a sinking fund
in order to meet the redemption fund requirements of the Municipality;
9
8.3.8 Repurchase agreements with banks registered in terms of the Banks Act, 1990
(Act No 94 of 1990);
8.3.9 Municipal bonds issued by the Municipality;
8.3.10 Any other investment type as the Minister may identify by regulation in terms of
section 168 of the Act, in consultation with the Financial Services Board; and
8.3.11 Any other instruments or investments in which the Municipality was under a law
permitted to invest before the commencement of this policy, provided that such
investments shall not extend beyond the date of maturity or redemption thereof.
8.3.12 An investment may only be made if the investment is denominated in Rand and is
not indexed to, or affected by, fluctuations in the value of the Rand against any
foreign currency.
8.4
Advertisements
8.4.1 To ensure transparency the Municipality must within 30 days after an investment
with currency of 12 months or longer has been made; publish in a local
newspaper in circulation within its area of jurisdiction full details of any
investments so made.
8.5
Growth Related Investments and Long-Term Investments
8.5.1 Only the Council can approve such investments or the disposal thereof. The
institution with which the investment is made must guarantee at least the capital
portion of long-term investments.
8.5.2 Any fees payable to a broker, agent, or consultant must be clearly stated on the
application form and approved by Council before any investment is made.
8.6
Credit Worthiness (Short-Term Investments)
8.6.1 Council must utilise the national (ZAF) short-term credit rating to evaluate the
credit worthiness of financial institutions. Investments may be placed within the
following criteria (excluding daily call deposits with the Municipality’s banker):-
10

A1 (Short-term):
R10 000 000 (Ten Million Rand) per financial institution.

A2 (Short-term):
R 1 000 000 (One Million Rand) per financial institution.
8.6.2 Council must liquidate any investment that is held at an institution, which no
longer has a minimum acceptable rating as specified in this investment policy.
9.
ALL DEPOSITS AND FIXED DEPOSITS SHORTER THAN 12 MONTHS
9.1 Quotations must be solicited from a minimum of three financial institutions, bearing in
mind the limits of the term for which it is intended to invest the funds. It is acceptable
to ask for quotations telephonically, as rates can generally change regularly on a
daily basis and time is a determining factor when investments are made.
9.2 Should one of the institutions offer a better rate for a term, other than what the
Municipality had in mind, the other institutions that were approached should also be
asked to quote a rate for the same term.
9.3 The person responsible for requesting quotations from institutions should record the
name of the institution, the name of the person who gave the telephonic quotation
and the relevant terms and rates and other facts such as whether the interest is
payable on a monthly basis or on a maturity date. Written confirmation of the
telephonic quotation accepted is essential.
9.4 Once the required number of quotations has been obtained, a decision has to be
taken regarding the best terms offered and the institution with which the funds are
going to be invested. Subject to par 8.6 above, the best offer is normally accepted,
with thorough consideration of investment principles. No attempts may be made to
make institutions compete with each other as far as their rates and terms are
concerned. If institutions have been asked for a quotation with regard to a specific
package the institution has to be told to offer their best rate in their quotation and
that, once the quotation has been given, no further bargaining or discussions would
be entered into in that regard.
9.5 The abovementioned procedure should be followed regardless of whether the money
is to be invested in a fixed deposit or on a call basis.
11
9.6 It is essential to make sure that the investment document received is an original
document, issued by the approved institution. The investment capital should be paid
over only to the institution with which it is to be invested, and not to an agent.
9.7 The above procedures are not applicable to daily call deposits held with the
Municipality’s banker. However, the Chief Financial Officer should always ensure
that the Municipality is receiving the best possible interest rates offered by the
financial institution for this type of investment.
9.8 The Chief Financial Officer should seek professional advice whenever there is a
degree of uncertainty regarding investment opportunities that he/ she evaluate.
10.
CONTROL OVER INVESTMENTS
10.1 Proper records should be kept of all investments made. At the very least the
following facts should be indicated:
Institution.

Principle investment.

Interest rate.

Maturity date.

Details of growth of the investment, calculated annually at 30 June, including
interest capitalised.
10.2 The investment register must be examined on a fortnightly basis to identify
investments falling due within the next two weeks. It must then be established as
what to do with the funds bearing in mind the cashflow requirements.
10.3 Interest, correctly calculated, should be received timeously, together with any
distributable capital.
10.4 Investment documents and certificates should be kept in a fire-resistant safe to
which access is controlled.
10.5 The Chief Financial Officer is responsible for ensuring that the invested funds are
secure and should there be a measure of risk, such risk must be rated realistically.
12
10.5 The Executive Committee should approve all investment withdrawals before date
of maturity of R500 000 (Five Hundred Thousand Rand) and above.
11.
11.1 This policy shall be implemented once approved by Council. All future investments
must be made in accordance with this policy.
11.2 In terms of section 17(1)(e) of the MFMA this policy must be reviewed on annual
basis and the reviewed policy tabled to Council for approval as part of the budget
process.
13
GREATER TUBATSE
LOCAL MUNICIPALITY
SUPPLY CHAIN MANAGEMENT
POLICY
FOR IMPLEMENTATION ON 1 JULY 2012
2
2nd AMENDED
POLICY DOCUMENT
LOCAL GOVERNMENT: MUNICIPAL FINANCE MANAGEMENT ACT, 2003
Date of adoption: 15 DECEMBER 2011
The Greater Tubatse Municipality resolves in terms of section 111 of the Local
Government Municipal Finance Management Act (No. 56 of 2003), to adopt the
following proposal as the Second Amended Supply Chain Management Policy of the
municipality.
TABLE OF CONTENTS
1.
Definitions
CHAPTER 1
IMPLEMENTATION OF SUPPLY CHAIN MANAGEMENT POLICY
2.
Supply chain management policy
3.
Amendment of supply chain management policy
4.
Delegation of supply chain management powers and duties
5.
Sub-delegations
6.
Oversight role of council
7.
Supply chain management units
8.
Training of supply chain management officials
CHAPTER 2
SUPPLY CHAIN MANAGEMENT SYSTEM
9.
Format of supply chain management system
Part 1: Demand management1
10.
System of demand management
Part 2: Acquisition management
3
11.
System of acquisition management
12.
Range of procurement processes
13.
General preconditions for consideration of written quotations or bids
14.
Lists of accredited prospective providers
15.
Petty cash purchases
16.
Written or verbal quotations
17.
Formal written price quotations
18.
Procedures for procuring goods or services through written or verbal
quotations and formal written price quotations
19.
Competitive bidding process
20.
Process for competitive bidding
21.
Bid documentation for competitive bids
22.
Public invitation for competitive bids
23.
Procedure for handling, opening and recording of bids
24.
Negotiations with preferred bidders
25.
Two-stage bidding process
26.
Committee system for competitive bids
27.
Bid specification committees
28.
Bid evaluation committees
29.
Bid adjudication committees
30.
Procurement of banking services
31.
Procurement of IT related goods or services
32.
Procurement of goods and services under contracts secured by other organs
of state
33.
Procurement of goods necessitating special safety arrangements
34.
Proudly SA Campaign
35.
Appointment of consultants
36.
Deviation from, and ratification of minor breaches of, procurement processes
37.
Unsolicited bids
38.
Combating of abuse of supply chain management system.
Part 3: Logistics, Disposal, Risk and Performance Management
4
39.
Logistics management
40.
Disposal management
41.
Risk management
42.
Performance management
Part 4: Other matters
43.
Prohibition on awards to persons whose tax matters are not in order
44.
Prohibition on awards to persons in the service of the state
45.
Awards to close family members of persons in the service of the state
46.
Ethical standards
47.
Inducements, rewards, gifts and favours
48.
Sponsorships
49.
Objections and complaints
50.
Resolution of disputes, objections, complaints and queries
51.
Contracts providing for compensation based on turnover
Definitions
1.
In this Policy, unless the context otherwise indicates, a word or expression
to which a meaning has been assigned in the Act has the same meaning
as in the Act, and –
“All applicable taxes” includes value-added tax, pay as you earn, income tax,
unemployment insurance fund contributions and skills development levies.
“Acceptable bids” means any bid which, in all respects, complies with the
specification and conditions of bid as set out in the bid
document.
“B-BBEE” means broad-based economic empowerment as defined in section 1 of
the Broad-Based Black Economic Empowerment Act.
“B-BBEE status level of contributor” means the B-BBEE status received by a
measured entity on its overall performance using the relevant scorecard contained in
5
the Codes of Good Practice on Black Economic Empowerment, issued in terms of
section 9(1) of the Broad-Based Black Economic Empowerment Act.
“Bid” means a written offer in a prescribed or stipulated form in response to an
invitation by an organ of state for the provision of goods, works or services.
“Broad-Based Black Economic Empowerment Act” means the Broad-Based
Black Economic Empowerment Act, 2003 (Act No.53 of 2003).
“Comparative price” means the price after the factors of a non-firm price and all
unconditional discounts that can be utilized have been taken into consideration.
“Competitive bidding process” means a competitive bidding process referred to in
paragraph 12 (1) (d) of this Policy;
“Competitive bid” means a bid in terms of a competitive bidding process;
“Consortium or joint venture” means an association of persons for the purpose of
combining their expertise, property, capital, efforts, skill and knowledge in an activity
for the execution of a contract.
“Contract” means the agreement that results from the acceptance of a tender by an
organ of state.
“Designated sector” means a sector, sub-sector or industry that has been
designated by the Department of Trade and Industry in line with national development
and industrial policies for local production, where only locally produced services,
works or goods or locally manufactured goods meet the stipulated minimum threshold
for local production and content.
“Final award” in relation to bids or quotations submitted for a contract, means the
final decision on which bid or quote is accepted / awarded;
“Contract” means the agreement that results from the acceptance of a bid by an
organ of state.
6
“Control” means the possession and exercise of legal authority and power to
manage
the
assets,
goodwill
and
daily
operations
of
a
business
and
the active and continuous exercise of appropriate managerial authority and power in
determining the policies and directing the operations of the business.
“Disability” means, in respect of a person, a permanent impairment of a physical,
intellectual, or sensory function, which results in restricted, or lack of, ability to
perform an activity in the manner, or within the range, considered normal for a human
being.
“Equity ownership” means the percentage ownership and control, exercised by
individuals within an enterprise.
“Formal written price quotation” means quotations referred to in paragraph 12 (1)
(c) of this Policy.
“Functionality” means the measurement according to pre-determined norms, as set
out in the tender documents, of a service or commodity that is designed to be
practical and useful, working or operating, taking into account, among other factors,
the quality, reliability, viability and durability of a service and the technical capacity
and ability of a tenderer.
In the service of the state” means to be –
(a) a member of –
(i)
any municipal council;
(ii)
any provincial legislature; or
(iii)
the National Assembly or the National Council of Provinces;
(b) a member of the board of directors of any municipal entity;
(c) an official of any municipality or
municipal entity;
7
(d) an employee of any national or provincial department, national or provincial
public entity or constitutional institution within the meaning of the Public Finance
Management Act, 1999 (Act No.1 of 1999) as amended by Act No.29 of 1999
(e) a member of the accounting authority of any national or provincial public entity; or
(f) an employee of Parliament or a provincial legislature;
“Long term contract” means a contract with a duration period exceeding one year;
“List of accredited prospective providers” means the list of accredited prospective
provider which the Municipality must keep in terms of paragraph 14 of this policy;
“Management” means an activity inclusive of control and performed on a daily basis,
by any person who is a principal executive officer of the company, by whatever name
that person may be designated, and whatever or not that person is a director.
“Other applicable legislation” means any other legislation applicable to municipal
supply chain management, including –
(a)
the Preferential Procurement Policy Framework Act, 2000 (Act No. 5 of 2000);
(b)
the Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of
2003); and
(c)
the Construction Industry Development Board Act, 2000 (Act No.38 of 2000);
“Owned” means having all the customary elements of ownership, including the
right of decision-making and sharing all the risks and profits commensurate with the
degree of ownership interests as demonstrated by an examination of the substance,
rather than the form of ownership arrangements.
“Person” includes reference to a juristic person.
“Rand value” means the total estimated value of a contract in Rand denomination
that is calculated at the time of bid invitations and includes all applicable taxes and
excise duties.
8
“Small, Medium and Micro Enterprises (SMMEs) bears the same meaning
assigned to this expression in the National Small Business Act, 1996 (No.102 of
1996).
“Sub-contracting” means the primary contractor’s assigning or leasing or making
out work to, or employing another person to support such primary contractor in the
execution of part of a project in terms of the contract.
“The Act” means the Local Government: Municipal Finance Management Act, 2003
(Act No. 56 of 2003);
“The Regulations” means the Local Government: Municipal Finance Management
Act, 2003, Municipal Supply Chain Management Regulations published by
Government Notice 868 of 2005.
“Treasury guidelines” means any guidelines on supply chain management issued
by the Minister in terms of section 168 of the Act.
“Trust” means the arrangement through which the property of one person is made
over or bequeathed in order for such property to be administered for the benefit of
another person.
“Trustee” means any person, including the founder of a trust, to whom property is
bequeathed in order for such property to be administered for the benefit of another
person.
“Written or verbal quotations” means quotations referred to in paragraph 12 (1) (b)
of this Policy.
CHAPTER 1
IMPLEMENTATION OF SUPPLY CHAIN MANAGEMENT POLICY
9
Supply chain management policy
2.
(1)
All officials and other role players in the supply chain management
system of the municipality must implement this Policy in a way that –
(a)
gives effect to –
(i)
Section 217 of the Constitution; and
(ii)
Part 1 of Chapter 11 and other applicable provisions of the Act;
(b)
is fair, equitable, transparent, competitive and cost effective;
(c)
complies with –
(i)
the Regulations; and
(ii)
any minimum norms and standards that may be prescribed in terms of
section 168 of the Act;
(d)
is consistent with other applicable legislation;
(e)
does not undermine the objective for uniformity in supply chain management
systems between organs of state in all spheres; and
(f)
is consistent with national economic policy concerning the promotion of
investments and doing business with the public sector.
(2)
This Policy applies when the municipality
(a)
procures goods or services;
(b)
disposes goods no longer needed;
(c)
selects contractors to provide assistance in the provision of municipal services
otherwise than in circumstances where Chapter 8 of the Municipal Systems
Act applies; or
(d)
selects external mechanisms referred to in section 80 (1) (b) of the Municipal
Systems Act for the provision of municipal services in circumstances
contemplated in section 83 of that Act.
(3)
This Policy, except where provided otherwise, does not apply in
respect of the procurement of goods and services contemplated in
section 110(2) of the Act, including –
(a)
water from the Department of Water Affairs or a public entity, another
municipality or a municipal entity; and
10
(b)
electricity from Eskom or another public entity, another municipality or a
municipal entity.
Amendment of the supply chain management policy
The accounting officer must –
3.
(1)
(a)
at least annually review the implementation of this Policy; and
(b)
when the accounting officer considers it necessary, submit proposals for the
amendment of this Policy to the council
(2)
If the accounting officer submits proposed amendments to the council
that differs from the model policy issued by the National Treasury, the
accounting officer must –
(a)
ensure that such proposed amendments comply with the Regulations; and
(b)
report any deviation from the model policy to the National Treasury and
the
relevant provincial treasury.
3.
When amending this supply chain management policy the need for
uniformity in supply chain practices, procedures and forms between
organs of state in all spheres, particularly to promote accessibility of
supply chain management systems for small businesses must be
taken into account.
Delegation of supply chain management powers and duties
4.
(1)
The council hereby delegates all powers and duties to the
accounting officer which are necessary to enable the accounting
officer –
(a)
to discharge the supply chain management responsibilities conferred on
accounting officers in terms of –
(b)
(i)
Chapter 8 or 10 of the Act; and
(ii)
this Policy;
to maximize administrative and operational efficiency in the implementation of
this Policy;
11
(c)
to enforce reasonable cost-effective measures for the prevention of fraud,
corruption, favouritism and unfair and irregular practices in the implementation
of this Policy; and
(d)
to comply with his or her responsibilities in terms of section 115 and other
applicable provisions of the Act.
(2)
Sections 79 and 106 of the Act apply to the sub-delegation of
powers and duties delegated to an accounting officer in terms of
subparagraph (1).
(3)
The accounting officer may not sub-delegate any supply chain
management powers or duties to a person who is not an official of
the municipality or to a committee which is not exclusively
composed of officials of the municipality;
(4)
This paragraph may not be read as permitting an official to whom
the power to make final awards has been delegated, to make a
final award in a competitive bidding process otherwise than through
the committee system provided for in paragraph 26 of this Policy.
Sub delegations
5.
(1)
The accounting officer may in terms of section 79 or 106 of the Act
sub-delegate any supply chain management powers and duties,
including those delegated to the accounting officer in terms of this
Policy, but any such sub-delegation must be consistent with
subparagraph (2) of this paragraph and paragraph 4 of this Policy.
(2)
(a)
The power to make a final award –
above R200 000 (VAT included) may not be sub-delegated by the accounting
officer;
(b)
above R100 000 (VAT included), but not exceeding R200 000 (VAT included),
may be sub delegated but only to –
(i)
the chief financial officer;
(ii)
a senior manager; or
12
(iii)
a bid adjudication committee of which the chief financial officer or
a
senior manager is a member; or
(c)
not exceeding R100 000 (VAT included) may be sub-delegated but only
to –
(i)
(ii)
a senior manager;
(iii)
a manager directly accountable to the chief financial officer or a senior
manager; or
(iv)
a bid adjudication committee.
(3)
An official or bid adjudication committee to which the power to
make final awards has been sub-delegated in accordance with
sub-paragraph (2) must within five (5) days of the end of each
month submit to the official referred to in sub-paragraph (4) a
written report containing particulars of each final award made by such
official or committee during that month, including–
(a)
the amount of the award;
(b)
the name of the person to whom the award was made; and
(c)
the reason why the award was made to that person.
(4)
(a)
A written report referred to in sub-paragraph (3) must be submitted –
to the accounting officer, in the case of an award by –
(i)
(ii)
a senior manager; or
(iii)
a bid adjudication committee of which the chief financial officer or a
senior manager is a member; or
(b)
to the chief financial officer or the senior manager responsible for the relevant
bid, in the case of an award by –
(i)
a manager referred to in subparagraph (2) (c) (iii); or
(ii)
a bid adjudication committee of which the chief financial officer or
senior manager is not a member.
a
13
(5)
Sub-paragraphs (3) and (4) of this policy do not apply to procurements
out of petty cash.
(6)
This paragraph may not be interpreted as permitting an official to whom
the power to make final awards has been sub-delegated, to make a final
award in a competitive bidding process otherwise than through the
committee system provided for in paragraph 26 of this Policy.
(7)
No supply chain management decision-making powers may be
delegated to an advisor or consultant.
Oversight role of council
6.
(1)
The council reserves its right to maintain oversight over the
implementation of this Policy.
(2)
For the purposes of such oversight the accounting officer must –
(a)
(i)
within 30 days of the end of each financial year, submit a
report on the implementation of this Policy and the supply
chain management policy of any municipal entity under the
sole or shared control of the municipality, to the council of
the municipality; and
(ii)
whenever there are serious and material problems in the
implementation of this Policy, immediately submit a report to
the council,
(3)
The accounting officer must, within 10 days of the end of each
quarter, submit a report on the implementation of the supply chain
management policy to the mayor.
(4)
The reports must be made public in accordance with section 21A of
the Municipal Systems Act.
Supply chain management unit
14
7.
(1)
A
supply
chain
management
unit
is
hereby
established
to
implement this Policy.
(2)
The supply chain management unit operates under the direct
supervision of the chief financial officer or an official to whom this
duty has been delegated in terms of section 82 of the Act.
Training of supply chain management officials
8.
The training of officials involved in implementing this Policy should be in
accordance with any Treasury guidelines on supply chain management
training.
CHAPTER 2
SUPPLY CHAIN MANAGEMENT SYSTEM
Format of supply chain management system
9.
This Policy provides systems for –
(i)
demand management;
(ii)
acquisition management;
(iii)
logistics management;
(iv)
disposal management;
(v)
risk management; and
(vi)
performance management.
Part 1: Demand management
System of demand management
10.
(1)
The accounting officer must establish and implement an
appropriate demand management system in order to ensure that
the resources required by the municipality support its operational
15
commitments and its strategic goals outlined in the Integrated
Development Plan.
(2)
(a)
The demand management system must –
include timely planning and management processes to ensure that all goods
and services required by the municipality are quantified, budgeted for timely
and effectively delivered at the right locations and at the critical delivery dates,
and are of the appropriate quality and quantity at a fair cost;
(b)
take into account any benefits of economies of scale that may be derived in
the case of acquisitions of a repetitive nature; and
(c)
provide for the compilation of the required specifications to ensure that its
needs are met.
(d)
To undertake appropriate industry analysis and research to ensure that
innovations and technological benefits are maximized.
Part 2: Acquisition management
System of acquisition management
11.
(1)
The accounting officer must implement the system of acquisition
management set out in this Part in order to ensure –
(a)
that goods and services are procured by the municipality in accordance with
authorised processes only;
(b)
that expenditure on goods and services is incurred in terms of an approved
budget in terms of section 15 of the Act;
(c)
that the threshold values for the different procurement processes are complied
with;
(d)
that bid documentation, evaluation and adjudication criteria, and general
conditions of a contract, are in accordance with any applicable legislation;
and
(e)
that any Treasury guidelines on acquisition management are properly taken
into account.
(2)
When procuring goods or services contemplated in section 110(2)
of the Act, the accounting officer must make public the fact that
16
such goods or services are procured otherwise than through the
municipality’s supply chain management system, including (a)
the kind of goods or services; and
(b)
the name of the supplier.
Range of procurement processes
12.
(1) Goods and services may only be procured by way of –
(a)
petty cash purchases, up to a transaction value of R2000 (VAT included);
(b)
at least two written quotations for the procurement of a transaction value from
R2000 up to R10 000 (VAT included);
(c)
three formal written price quotations for procurements of a transaction value
over R10 000 up to R200 000 (VAT included); and
(d)
a competitive bidding process for–
(i)
procurements above a transaction value of R200 000 (VAT included);
and
(a)
(ii)
the procurement of long term contracts.
(2)
The accounting officer may, in writing-
lower, but not increase, the different threshold values specified in
sub-paragraph (1); or
(b)
direct that –
(i)
written quotations be obtained for any specific
procurement of a transaction value lower than R2000;
(ii)
formal written price quotations be obtained for any specific
procurement of a transaction value lower than R10 000; or
(iii)
a competitive bidding process be followed for any specific
procurement of a transaction value lower than R200 000.
(3)
Goods or services may not deliberately be split into parts or items
of a lesser value merely to avoid complying with the requirements of
17
the policy. When determining transaction values, a requirement for
goods or services consisting of different parts or items must as far
as possible be treated and dealt with as a single transaction.
General preconditions for consideration of written quotations or bids
13.
A written quotation or bid may not be considered unless the provider who
submitted the quotation or bid –
(a)
(b)
has furnished that provider’s –
(i)
full name;
(ii)
identification number or company or other registration number; and
(iii)
tax reference number and VAT registration number, if any;
has authorised the municipality to obtain a tax clearance from the South
African Revenue Services that the provider’s tax matters are in order; and
(c)
has indicated –
(i)
whether he or she is in the service of the state, or has been in the
service of the state in the previous twelve months;
(ii)
if the provider is not a natural person, whether any of its directors,
managers, principal shareholders or stakeholder is in the service of the
state, or has been in the service of the state in the previous twelve
months; or
(iii)
whether a spouse, child or parent of the provider or of a director,
manager, shareholder or stakeholder referred to in subparagraph (ii) is
in the service of the state, or has been in the service of the state in the
previous twelve months.
Lists of accredited prospective providers
14.
(1)
(a)
keep a list of accredited prospective providers of goods and services that must
be used for the procurement requirements through written or verbal quotations
and formal written price quotations; and
18
(b)
at least once a year through newspapers commonly circulating locally, the
website and any other appropriate ways, invite prospective providers of
goods or services to apply for evaluation and listing as accredited prospective
providers;
(c)
Prospective suppliers will be required to complete a supplier database
questionnaire form and submit all requisite documentations for registration
purposes.
(d)
disallow the listing of any prospective provider whose name appears on
the National Treasury’s database as a person prohibited from doing business
with the public sector and is in the service of the state.
(2)
The list must be updated at least quarterly to include any additional
prospective providers and any new commodities or types of
services. Prospective providers must be allowed to submit
applications for listing at any time.
(3)
The list must be compiled per commodity and per type of service.
Petty cash purchases
15.
The conditions for the procurement of goods by means of petty cash
purchases referred to in paragraph 12 (1) (a) of this Policy, are as follows –
(a)
a manager may delegate responsibility for petty cash requests to an
official reporting to the manager in terms of the official delegation authority;
(b)
the maximum amounts shall be R2000 per month for each Director / Head of
Department.
(c)
purchases from petty cash are to be restricted to small items of stationary,
refreshments or small items required in an emergency that do not exceed a
transaction value of R200.00
(d)
a monthly reconciliation report from each manager must be provided to the
chief financial officer, including –
(i)
the total amount of petty cash purchases for that month; and
(ii)
receipts and appropriate documents for each month.
19
(e)
petty cash shall be issued by the finance section as and when required by
departments in terms of a procedure manual.
(f)
a petty cash policy must be adopted to give effect to petty cash purchases.
petty cash requests must be properly authorized and have the correct line item
description. All requests to be accompanied by relevant/appropriate supporting
documents e.g. cash sale slips, receipts and so forth.
Written quotations
16.
The conditions for the procurement of goods or services through written
quotations, are as follows:
(a)
Quotations must be obtained in accordance with paragraph 12(1) from different
providers preferably from, but not limited to, providers whose names appear on
the list of accredited prospective providers of the municipality provided that if
quotations are obtained from providers who are not listed, such providers must
meet the listing criteria set out in paragraph 14(1)(b) and (c) of this Policy;
(b)
Providers must be requested to submit such quotations in writing;
(c)
if it is not possible to obtain quotations as prescribed in paragraph 12(1), the
reasons must be recorded and reported quarterly to the accounting officer or
another official designated by the accounting officer;
(d)
the accounting officer must record the names of the potential providers
requested to provide such quotations with their quoted prices; and
(e)
quotations must be accompanied by a schedule of goods / services / works to
be procured, declaration of interest template form (MBD 4), unless the
prospective bidder is already accredited onto the database system, and a valid
original tax clearance certificate if the transactions exceed R30,000 VAT
included.
Formal written price quotations
17.
(1)
The conditions for the procurement of goods or services through
formal written price quotations, are as follows:
(a)
quotations must be obtained in writing from at least three different
providers whose names appear on the list of accredited prospective providers
of the municipality;
20
(b)
quotations may be obtained from providers who are not listed, provided that
such providers meet the listing criteria set out in paragraph 14 (1) (b) and (c) of
this Policy;
(c)
if it is not possible to obtain at least three quotations, the reasons must be
recorded and approved by the chief financial officer or an official designated by
the chief financial officer, and
(d)
the accounting officer must record the names of the potential providers and
their written quotations.
(2)
A designated official referred to in subparagraph (1) (c) must within
three days of the end of each month report to the chief financial
officer on any approvals given during that month by that official in
terms of that subparagraph.
Procedures for procuring goods or services through written or verbal
quotations and formal written price quotations
18.
The procedure for the procurement of goods or services through written
quotations or formal written price quotations, is as follows:
(a)
when using the list of accredited prospective providers the accounting officer
must promote ongoing competition amongst providers by inviting providers to
submit quotations on a rotation basis;
(b)
all requirements in excess of R30,000 (VAT included) that are to be procured
by means of formal written price quotations must, in addition to the
requirements of paragraph 17, be advertised for at least seven days on the
website and an official notice board of the municipality;
(c) offers received must be evaluated on a comparative basis taking into account
unconditional discounts;
(d) the accounting officer or chief financial officer must on a monthly basis be notified
in writing of all written or verbal quotations and formal written price quotations
accepted by an official acting in terms of a sub-delegation;
21
(e) offers below R30,000 (VAT included) must be awarded based on compliance to
specifications and conditions of contract, ability and capability to deliver the
goods and services and lowest price;
(f) acceptable offers, which are subject to the B-BBEE level contribution points
system (PPPFA and associated Regulations), must be awarded to the bidder who
scored the highest points;
(g) Bid adjudication committee shall adjudicate all offers whose monetary
transactions exceed R30,000 (VAT Included) and depending on its delegations,
make a final award or a recommendation to the accounting officer to make the
final award.
(h) Certain transactions like accommodation, conferencing, placing advertisements in
newspapers may be negotiated directly with one supplier than requesting for
comparative quotations.
Competitive bids
19.
(1) Goods or services above a transaction value of R200,000 (VAT
included) and long term contracts may only be procured through a
competitive bidding process, subject to paragraph 11(2) of this Policy.
(2) No requirement for goods or services above an estimated transaction value
of R200,000 (VAT included), may deliberately be split into parts or items of
lesser value merely for the sake of procuring the goods or services
otherwise than through a competitive bidding process.
Process for competitive bidding
20.
The procedures for the following stages of a competitive bidding process
are as follows:
(a)
Compilation of bidding documentation as detailed in paragraph 21;
(b)
Public invitation of bids as detailed in paragraph 22;
(c)
Site meetings or briefing sessions as detailed in paragraph 22;
22
(d)
Handling of bids submitted in response to public invitation as detailed in
paragraph 23;
(e)
Publishing on the municipal website all bidders that submitted bids within 10
days after the closure of the advertised competitive bid.
(f)
Evaluation of bids as detailed in paragraph 28;
(g)
Award of contracts as detailed in paragraph 29;
(h)
Administration and management of contracts
(i)
After approval of a bid, the accounting officer and the bidder must enter
into a written agreement.
(i)
Proper record keeping
(1)
Original / legal copies of written contracts (service level agreements)
should be kept in a secure place for accountability and reference
purpose by the Corporate Services department, Legal Section.
Bid documentation for competitive bids
21.
The criteria to which bid documentation for a competitive bidding process
must comply, must –
(a)
take into account –
(i)
the general conditions of contract and any special conditions of
contract, if specified;
(ii)
any Treasury guidelines on bid documentation; and
(iii)
the requirements of the Construction Industry Development Board,
in the case of a bid relating to construction, upgrading or refurbishment
of buildings or infrastructure;
(b)
include the preference points system to be used, goals as contemplated
in the Preferential Procurement Regulations and evaluation and
adjudication criteria, including any criteria required by other applicable
legislation;
(c)
compel bidders to declare any conflict of interest they may have in the
transaction for which the bid is submitted;
(d)
if the value of the transaction is expected to exceed R10 million (VAT
included), require bidders to furnish–
23
(i)
if the bidder is required by law to prepare annual financial statements for
auditing, their audited annual financial statements –
(aa)
for the past three years; or
(bb)
since their establishment if established during the past three
years;
(ii)
a certificate signed by the bidder certifying that the bidder has no
undisputed commitment for municipal services towards a municipality or
other service provider in respect of which payment is overdue for more
than 90 days;
(iii)
particulars of any contracts awarded to the bidder by an organ of state
during the past five years, including particulars of any material noncompliance or dispute concerning the execution of such contract;
(iv)
a statement indicating whether any portion of the goods or services are
expected to be sourced from outside the Republic, and, if so, what
portion and whether any portion of payment from the municipality is
expected to be transferred out of the Republic; and
(e)
stipulate that disputes must be settled by means of mutual consultation,
mediation (with or without legal representation), or, when unsuccessful, in a
South African court of law.
Public invitation for competitive bids
22.
(1)
The procedure for the invitation of competitive bids, is as follows:
(a)
Any invitation to prospective providers to submit bids must be by means of
a public advertisement in newspapers commonly circulating locally, the
website of the municipality or any other appropriate ways (which may include
an advertisement in the Government Tender Bulletin); and
(b)
the information contained in a public advertisement, must include –
(i)
the closure date for the submission of bids, which may not be less than
30 days in the case of transactions over R10 million (VAT included), or
which are of a long term nature, or 14 days in any other case, from the
24
date on which the advertisement is placed in a newspaper, subject to
subparagraph (2) of this policy;
(ii)
a statement that bids may only be submitted on the bid documentation
provided by the municipality; and
(iii)
date, time and venue of any proposed site meetings or briefing
sessions.;
(2) The accounting officer may determine a closure date for the submission of
bids which is less than the 30 or 14 days requirement, but only if such
shorter period can be justified on the grounds of urgency or emergency or
any exceptional case where it is impractical or impossible to follow the
official procurement process.
(3)
Bids submitted must be sealed and deposited into the municipal Tender
Box or as directed by the Bid Advertisement documents.
(4)
Where bids are requested in electronic format, such bids must be
supplemented by sealed hard copies.
(5)
The municipality reserves the right to sell Bid documents at a nonrefundable fee determined from time to time as per the different scope
of works, goods and services to be procured and sourced.
Procedure for handling, opening and recording of bids
23.
The procedures for the handling, opening and recording of bids, are as
follows:
(a)
Bids–
(i)
must be opened only in public;
(ii)
must be opened at the same time and as soon as possible after the
period for the submission of bids has expired; and
(iii)
received after the closing time should not be considered and returned
unopened immediately.
25
(b)
Any bidder or member of the public has the right to request that the names
of the bidders who submitted bids in time must be read out and, if practical,
also each bidder’s total bidding price;
No information, except the provisions in subparagraph (b), relating to the
bid should be disclosed to bidders or other persons until the successful
bidder is notified of the award; and
(c)
(i)
record in a register all bids received in time;
(ii)
make the register available for public inspection; and
(iii)
publish the entries in the register and the bid results on the website.
(d)
Bidders shall be required to submit bids for a period specified in the
bid documents and all bids received will remain valid for a period of
90 working days after the closing date.
(e)
Bids will close at 12H00 on a date as stipulated on the bid documents.
Negotiations with preferred bidders
24.
(1)
The accounting officer may negotiate the final terms of a contract
with bidders identified through a competitive bidding process as
preferred bidders, provided that such negotiation –
(a)
does not allow any preferred bidder a second or unfair opportunity;
(b)
is not to the detriment of any other bidder; and
(c)
does not lead to a higher price than the bid as submitted.
(2)
Minutes of such negotiations must be kept for record purposes.
Two-stage bidding process
A two-stage bidding process is allowed for –
25.
(1)
(a)
large complex projects;
(b)
projects where it may be undesirable to prepare complete detailed technical
specifications; or
(c)
long term projects with a duration period exceeding three years.
26
(2)
In the first stage technical proposals on conceptual design or
performance specifications should be invited, subject to technical as
well as commercial clarifications and adjustments.
(3)
In the second stage final technical proposals and priced bids should
be invited.
Committee system for competitive bids
26.
(1)
A committee system for competitive bids is hereby established,
consisting of the following committees for each procurement or
cluster of procurements as the accounting officer may determine:
(a)
a bid specification committee;
(b)
a bid evaluation committee; and
(c)
a bid adjudication committee;
(2)
The accounting officer appoints the members of each committee,
taking into account section 117 of the Act; and
(3)
A neutral or independent observer, appointed by the accounting
officer, must attend or oversee a committee when this is appropriate
for ensuring fairness and promoting transparency.
(4)
The committee system must be consistent with –
(a)
paragraph 27, 28 and 29 of this Policy; and
(b)
any other applicable legislation.
(5)
The accounting officer may apply the committee system to formal
written price quotations.
Bid specification committee
27.
(1)
A bid specification committee must compile the specifications / terms of
reference or identify an existing specification that meets
27
the requirement for each procurement of goods or services by the
municipality
(2)
(a)
Specifications –
must be drafted in an unbiased manner to allow all potential suppliers to offer
their goods or services;
(b)
must take account of any accepted standards such as those issued by
Standards South Africa, the International Standards Organisation, or an
authority accredited or recognized by the South African National
Accreditation System with which the equipment or material or workman-ship
should comply;
(c)
must, where possible, be described in terms of performance required rather
than in terms of descriptive characteristics for design;
(d)
may not create trade barriers in contract requirements in the forms of
specifications, plans, drawings, designs, testing and test methods, packaging,
marking or labeling of conformity certification;
(e)
may not make reference to any particular trade mark, name, patent,
design, type, specific origin or producer unless there is no other sufficiently
precise or intelligible way of describing the characteristics of the work, in which
case such reference must be accompanied by the word “equivalent”;
(f)
must indicate each specific goal for which points may be awarded in terms of
the points system set out in the Preferential Procurement Regulations 2001;
and
(g)
must be approved by the accounting officer prior to publication of the invitation
for bids in terms of paragraph 22 of this Policy.
(3)
A bid specification committee must be composed of one or more
officials of the municipality, preferably the manager responsible for
the function involved, and may, when appropriate, include external
specialist advisors.
28
(4)
No person, advisor or corporate entity involved with the bid
specification committee, or director of such a corporate entity, may
bid for any resulting contracts.
Bid evaluation committee
A bid evaluation committee must –
28.
(1)
(a)
evaluate bids in accordance with –
(i)
the specifications for a specific procurement; and
(ii)
the points system set out in terms of the Preferential Procurement
Regulations 2001 and envisaged on paragraph 27 (2) (f) of this policy.
(b)
evaluate each bidder’s ability to execute the contract;
(c)
check in respect of the recommended bidder whether municipal rates and
taxes and municipal service charges are not in arrears, and;
(d)
submit to the adjudication committee a report and recommendations regarding
the award of the bid or any other related matter.
(e)
check prior awarding any contract to ensure that no recommended bidder,
or any of its directors, is listed as a person prohibited from conducting
business with the public sector,
(f)
rejects entertaining bid of any bidder if that bidder or any of its directors has
been convicted of fraud or corruption during the past five years,
(g)
rejects entertaining bid of any if that bidder or any of its directors has
intentionally neglected, reneged on or failed to comply with any
government, municipal or other public sector contract during the past five
years.
(h)
Disqualify bids of which an original tax clearance certificate is not
attached.
(i)
rejects entertaining bid of any bidder if that bidder or any of its directors is
in the service of the state.
(2)
A bid evaluation committee must as far as possible be composed of –
(a)
officials from departments requiring the goods or services; and
(b)
at least one supply chain management practitioner of the municipality.
29
Bid adjudication committee
A bid adjudication committee must –
29.
(1)
(a)
consider the report and recommendations of the bid evaluation committee; and
(b)
either –
(i)
depending on its delegations make a final award or a recommendation to the accounting officer to
make the final award; or
(ii)
make another recommendation to the accounting officer how to proceed
with the relevant procurement.
(2)
A bid adjudication committee must consist of at least four senior
managers of the municipality which must include –
(a)
the chief financial officer or, if the chief financial officer is not available, another
manager in the budget and treasury office reporting directly to the chief
financial officer and designated by the chief financial officer; and
(b)
at least one senior supply chain management practitioner who is an official of
the municipality; and
(c)
a technical expert in the relevant field who is an official, if such an expert
exists.
(3)
The accounting officer must appoint the chairperson of the
committee. If the chairperson is absent from a meeting, the
members of the committee who are present must elect one of them to
preside at the meeting provided there is a quorum.
(4)
Neither a member of a bid evaluation committee, nor an advisor or
person assisting the evaluation committee, may be a member of a bid
adjudication committee.
(5)
(a)
If the bid adjudication committee decides to award a bid
other than the one recommended by the bid evaluation
30
committee, the bid adjudication committee must prior to
awarding the bid –
(i)
check in respect of the preferred bidder whether that bidder’s
municipal rates and taxes and municipal service charges are not in
arrears, and;
(ii)
notify the accounting officer.
(b)
(i)
The accounting officer may –
after due consideration of the reasons for the deviation, ratify or reject
the decision of the bid adjudication committee referred to in paragraph
(a); and
(ii)
if the decision of the bid adjudication committee is rejected, refer the
decision of the adjudication committee back to that committee for
reconsideration.
(6)
The accounting officer may at any stage of a bidding process, refer
any recommendation made by the evaluation committee or the
adjudication committee back to that committee for reconsideration
of the recommendation.
(7).
The accounting officer must comply with section 114 of the Act within 10
working days
(8)
8.1
The 80/20 or 90/10 Preference point systems
The following must be taken into consideration when applying the 80/20 or
90/10 point system when evaluating bids;
(i)
the bidder obtaining the highest number of points will be awarded the contract,
unless there are legally justifiable reasons not to do so.
(ii) B-BBEE level contributor points shall be calculated after prices have been brought
to a comparative basis, that is the price after all unconditional discounts that
can be utilized have been taken into consideration;
(iii)
points scored will be rounded off to the 2 decimal places;
31
(iv)
in the event of equal points scored, the bid will be awarded to the bidder
scoring the highest number of preference points for B-BBEE. In the event of a
tie after considering preference points for B-BBEE, then a lot will be drawn to
make an award decision.
(9)
(i)
Points awarded for price (Formula).
A maximum of 80 or 90 points is allocated for price as per the formula
outlined below;
80/20 (100)
or
< R1000.000
Ps = 80(1-Pt-Pmin)
90/10 (100)
> R1000.000
Ps = 90(1-Pt-Pmin)
Pmin
Pmin
Where
Ps
=
Points scored for comparative price of the bid / offer under consideration;
Pt
=
Comparative price of bid / offer under consideration; and
Pmin
=
Comparative price of lowest acceptable bid / offer.
(ii)
For contracts with a value of less than R1000.000 (<R1000.000) a
maximum of 20 points for B-BBEE preference points may be claimed and
points obtained to be added to the points obtained for price to obtain aggregate
score for each bidder
(iii)
For contracts with a value of greater than R1000.000 (>R1000.000) all
applicable taxes included a maximum of 10 preference points for B-BBEE
may be claimed and points obtained to be added to the points obtained for
price to obtain aggregate score for each bidder
(iv)
Depending on the nature of the appointment and scope of works, if the
bidder to be appointed is from outside the area of jurisdiction of the
Greater Tubatse Municipality as its determined locality, that bidder shall
be required to sub-contract at least 30% of the total scope of works to a
32
locally-SMME-based contractor registered on the municipal database.
(10) Subject to sub-regulation 29 (11) points must be awarded to a bidder attaining
their B-BBEE status level of contributor in accordance with the table below B-BBEE STATUS LEVEL CONTRIBUTOR
NUMBER OF POINTS
NUMBER OF POINTS
[80/20]
[90/10]
1
20
10
2
18
9
3
16
8
4
12
5
5
8
4
6
6
3
7
4
2
8
2
1
Non-Compliant Contributor
0
0
(11) A maximum of 20 points may be allocated in accordance with sub-region (10) in
instances where 80/20 point system is applied or 10 points in instances where
90/10 point system is applied.
(12) The points scored by a bidder in respect of the level of B-BBEE contribution
contemplated in sub-regulation (10) must be added to the points scored for
price as calculated in accordance with sub-regulation (9).
(13) The contract must be awarded to the bidder who scored the highest number of
points unless otherwise that is done in accordance with section 2 (1) (f) of the
Act.
(14) Bidders submitting their tenders in joint venture or consortium must obtain oneconsolidated / combined B-BBEE level contributor certificate for the purposes of
that specific tender, not their separate entity’s B-BBEE certificates.
Procurement of banking services
33
A contract for banking services –
30.
(1)
(a)
must be procured through competitive bids;
(b)
must be consistent with section 7 or 85 of the Act; and
(c)
may not be for a period of more than five years at a time.
(2)
The process for procuring a contract for banking services must
commence at least nine months before the end of an existing contract.
(3)
The closure date for the submission of bids may not be less than 60
days from the date on which the advertisement is placed in a
newspaper in terms of paragraph 22(1). Bids must be restricted to
banks registered in terms of the Banks Act, 1990 (Act No. 94 of 1990).
Procurement of IT related goods or services
31.
(1)
The accounting officer may request the State Information
Technology Agency (SITA) to assist with the acquisition of IT
related goods or services through a competitive bidding process
(2)
Both parties must enter into a written agreement to regulate the
services rendered by, and the payments to be made to, SITA.
(3)
The accounting officer must notify SITA together with a motivation
of the IT needs if –
(a)
the transaction value of IT related goods or services required in any financial
year will exceed R50 million (VAT included); or
(b)
the transaction value of a contract to be procured whether for one or more
years exceeds R50 million (VAT included).
(4)
If SITA comments on the submission and the municipality disagrees
with such comments, the comments and the reasons for rejecting or not
following such comments must be submitted to the council, the National
Treasury, the relevant provincial treasury and the Auditor General.
Procurement of goods and services under contracts secured by other organs
of state
34
32.
(1)
The accounting officer may procure goods or services under a
contract secured by another organ of state, but only if –
(a)
the contract has been secured by that other organ of state by means of a
competitive bidding process applicable to that organ of state;
(b)
there is no reason to believe that such contract was not validly procured;
(c)
there are demonstrable discounts or benefits to do so; and
(d)
that other organ of state and the provider have consented to such procurement
in writing.
(2)
(a)
Sub-paragraphs (1)(c) and (d) do not apply if –
a municipal entity procures goods or services through a contract secured by its
parent municipality; or
(b)
a municipality procures goods or services through a contract secured by a
municipal entity of which it is the parent municipality.
Procurement of goods necessitating special safety arrangements
33.
(1)
The acquisition and storage of goods in bulk (other than water),
which necessitate special safety arrangements, including gasses
and fuel, should be avoided where ever possible.
(2)
Where the storage of goods in bulk is justified, such justification
must be based on sound reasons, including the total cost of
ownership, cost advantages and environmental impact and must
be approved by the accounting officer.
Proudly SA Campaign
34.
The municipality supports the Proudly SA Campaign to the extent that,
all things being equal, preference is given to procuring local goods and
services from:

Firstly – suppliers and businesses within the municipality or district;
35

Secondly – suppliers and businesses within the relevant province;

Thirdly – suppliers and businesses within the Republic.
Appointment of consultants
35.
(1)
The accounting officer may procure consulting services provided
that any Treasury guidelines in respect of consulting services are
taken into account when such procurements are made.
(2)
Consultancy services must be procured through competitive bids if
(a)
the value of the contract exceeds R200 000 (VAT included); or
(b)
the duration period of the contract exceeds one year.
(3)
In addition to any requirements prescribed by this policy for
competitive bids, bidders must furnish particulars of –
(a)
all consultancy services provided to an organ of state in the last five years; and
(b)
any similar consultancy services provided to an organ of state in the last five
years.
(3)
The accounting officer must ensure that copyright in any document
produced, and the patent rights or ownership in any plant,
machinery, thing, system or process designed or devised, by a
consultant in the course of the consultancy service is vested in the
municipality.
(4)
(a)
Evaluation criteria when appointing consultants.
Calculation of points for functionality and price should be determined
as follows;
(i)
The percentage obtained for functionality should be added to the
percentage obtained for price to obtain a percentage out of 100 which in
turn should be converted to points out of 80 or 90 in terms of regulation 8
of the Preferential Procurement Regulations.
(ii)
The points scored out of 80 or 90 should be calculated according to
the following formula;
36
(iii)
The 80/20 preference point system
Ps = 80 (1-Hs-Rs)
Rs
(iv)
The 90/10 preference point system
Ps = 90 (1-Hs-Rs)
Rs
Where –
Ps
=
points scored for functionality and price of the bid under
consideration.
Hs
=
highest percentage scored by any acceptable bidder for
functionality.
Rs
=
percentage scored for functionality and price by bid under
consideration.
(v)
B-BBEE level contributor points scored by a bidder as contemplated by
regulation 29 (10) of this policy and PPPFA and the Regulations are then
calculated separately and added to the points scored for price and
functionality in order to obtain a final point.
(vi)
The contract should be awarded to the bidder who scored the highest
number of points unless there are justifiable reasons not to do so.
(vii) In the application of the 80/20 or 90/10 the B-BBEE level contributor
points shall be added to the points for price and functionality in order to
obtain the score out of 100.
(viii) The formula for determining the B-BBEE level contributor points shall be
as contemplated by regulation 29 (10) of this policy.
37
Evaluation criteria for price and functionality as well as the B-BBEE
preference points
PRICE
90 or 80 Points
CRITERIA
WEIGHT
VALUE
TOTALSCORE
Professional Registration
5
3
15
Relevant Experience
5
3
15
Quality of proposed
15
3
45
/ 11
3
33
/ 5
3
15
Non-GTM workload
5
3
15
Current engagement with
4
3
12
Registration for VAT
5
3
15
Registration for Tax
5
3
15
7
3
21
methodology
Quality of site personnel
project team
Transfer of knowledge
skill
GTM
Clearance Certificate
Registration for Indemnity
Insurance Cover
TOTAL
201
(ix) The same B-BBEE level contributor points, 20/10, in terms of the B-BBEE
scorecard as contemplated on regulation 29 (10) of this policy shall be applied in
determining the B-BBEE level contributor of the bidder.
(x) The bidder failing to obtain a minimum of 121 (60%) out of a score of 201
functionality points shall be disqualified from further evaluation. Once the bidder
has met the minimum of 121 (60%) score out of a functionality score of 201, shall
be evaluated on 90/80 for price and determine the remaining 20/10 using the
B-BBEE level contributor of the bidder concerned as appearing on the B-BBEE
rating certificate.
38
(xi) The 90/80 points for price shall no longer be split to accommodate the points for
functionality when appointing service providers and/or consultants.
Deviation from, and ratification of minor breaches of, procurement processes
The accounting officer may –
36.
(1)
(a)
dispense with the official procurement processes established by this
Policy and to procure any required goods or services through any convenient
process, which may include direct negotiations, but only –
(i)
in an emergency;
(ii)
if such goods or services are produced or available from a single
provider only;
(iii)
for the acquisition of special works of art or historical objects where
specifications are difficult to compile;
(iv)
acquisition of animals for zoos and/or nature and game reserves; or
(v)
in any other exceptional case where it is impractical or impossible to
follow the official procurement processes; and
(b)
ratify any minor breaches of the procurement processes by an official or
committee acting in terms of delegated powers or duties which are purely of a
technical nature.
(2)
The accounting officer must record the reasons for any deviations
in terms of sub-paragraphs (1)(a) and (b) of this policy and report them
to the next meeting of the council and include as a note to the annual
financial statements.
(3)
Sub-paragraph (2) does not apply to the procurement of goods and
services contemplated in paragraph 11(2) of this policy.
Unsolicited bids
37.
(1)
In accordance with section 113 of the Act there is no obligation to
consider unsolicited bids received outside a normal bidding process.
39
(2)
The accounting officer may decide in terms of section 113(2) of the
Act to consider an unsolicited bid, only if –
(a)
the product or service offered in terms of the bid is a demonstrably or proven
unique innovative concept;
(b)
the product or service will be exceptionally beneficial to, or have exceptional
cost advantages;
(c)
the person who made the bid is the sole provider of the product or service;
and
(d)
the reasons for not going through the normal bidding processes are found to
be sound by the accounting officer.
(3)
If the accounting officer decides to consider an unsolicited bid that
complies with subparagraph (2) of this policy, the decision must be
made public in accordance with section 21A of the Municipal
Systems Act, together with –
(a)
reasons as to why the bid should not be open to other competitors;
(b)
an explanation of the potential benefits if the unsolicited bid were accepted;
and
(c)
an invitation to the public or other potential suppliers to submit their comments
within 30 days of the notice.
(4)
The accounting officer must submit all written comments received
pursuant to subparagraph (3), including any responses from the
unsolicited bidder, to the National Treasury and the relevant
provincial treasury for comment.
(5)
The adjudication committee must consider the unsolicited bid and may
award the bid or make a recommendation to the accounting officer,
depending on its delegations.
(6)
A meeting of the adjudication committee to consider an unsolicited
bid must be open to the public.
40
(7)
When considering the matter, the adjudication committee must take
into account –
(a)
any comments submitted by the public; and
(b)
any written comments and recommendations of the National Treasury or the
relevant provincial treasury.
(8)
If any recommendations of the National Treasury or provincial
treasury are rejected or not followed, the accounting officer must
submit to the Auditor General, the relevant provincial treasury and
the National Treasury the reasons for rejecting or not following
those recommendations.
(9)
Such submission must be made within seven days after the decision on
the award of the unsolicited bid is taken, but no contract committing the
municipality to the bid may be entered into or signed within 30 days of
the submission.
Combating of abuse of supply chain management system
38.
(1)
The accounting officer must–
(a)
take all reasonable steps to prevent abuse of the supply chain management
system;
(b)
investigate any allegations against an official or other role player of fraud,
corruption, favouritism, unfair or irregular practices or failure to comply with this
Policy, and when justified –
(c)
(i)
take appropriate steps against such official or other role player; or
(ii)
report any alleged criminal conduct to the South African Police Service;
check the National Treasury’s database prior to awarding any contract to
ensure that no recommended bidder, or any of its directors, is listed as a
person prohibited from doing business with the public sector;
(d)
reject any bid from a bidder–
(i)
if any municipal rates and taxes or municipal service charges owed by
that bidder or any of its directors to the municipality, or to any other
municipality or municipal entity, are in arrears for more than three
months; or
41
(ii)
who during the last five years has failed to perform satisfactorily on a
previous contract with the municipality or any other organ of state after
written notice was given to that bidder that performance was
unsatisfactory;
(e)
reject a recommendation for the award of a contract if the recommended
bidder, or any of its directors, has committed a corrupt or fraudulent act in
competing for the particular contract;
(f)
cancel a contract awarded to a person if –
(i)
the person committed any corrupt or fraudulent act during the bidding
process or the execution of the contract; or
(ii)
an official or other role player committed any corrupt or fraudulent act
during the bidding process or the execution of the contract that
benefited that person; and
(g)
reject the bid of any bidder if that bidder or any of its directors –
(i)
has abused the supply chain management system of the municipality
or has committed any improper conduct in relation to such system;
(ii)
has been convicted for fraud or corruption during the past five years;
(iii)
has willfully neglected, reneged on or failed to comply with any
government, municipal or other public sector contract during the past
five years; or
(iv)
has been listed in the Register for Tender Defaulters in terms of
section 29 of the Prevention and Combating of Corrupt Activities Act
(No 12 of 2004).
(v)
Is in the service of the state as defined in terms of regulation 1 of the
Definitions of the glossary used in this policy.
(vi)
In arrears for municipal rates and taxes and other municipal service
charges with any municipality in the Republic of South Africa for more
than three months, unless in instances where the bidder has made
arrangement with the municipality concerned to settle his debt, of which
agreement is being honoured.
42
(vii) The municipality reserves the rights to prescribe that certain returnable
schedules be made with the bid document, which returnable schedules
will be aimed at enforcing the supply chain management regulations.
(2)
The accounting officer must inform the National Treasury and
relevant provincial treasury in writing of any actions taken in terms
of subparagraphs (1)(b)(ii), (e) or (f) of this policy.
Part 3: Logistics, Disposal, Risk and Performance Management
Logistics management
39.
The accounting officer must establish and implement an effective system of
logistics management, which must include –
(a)
the monitoring of spending patterns on types or classes of goods and services
incorporating, where practical, the coding of items to ensure that each item has
a unique number;
(b)
the setting of inventory levels that includes minimum and maximum levels and
lead times wherever goods are placed in stock;
(c)
the placing of manual or electronic orders for all acquisitions other than those
from petty cash;
(d)
before payment is approved, certification by the responsible officer that
the goods and services are received or rendered on time and is in
accordance with the order, the general conditions of contract and specifications
where applicable and that the price charged is as quoted in terms of a contract;
(e)
appropriate standards of internal control and warehouse management to
ensure that goods placed in stores are secure and only used for the purpose
for which they were purchased;
(f)
regular checking to ensure that all assets including official vehicles are
properly managed, appropriately maintained and only used for official
purposes; and
(g)
monitoring and review of the supply vendor performance to ensure compliance
with specifications and contract conditions for particular goods or services.
43
Disposal management
40.
(1) The criteria for the disposal or letting of assets, including
unserviceable, redundant or obsolete assets, subject to
sections 14 and 90 of the Act, are as follows:
(2)
Assets may be disposed of by –
(i)
transferring the asset to another organ of state in terms of a provision of
the Act enabling the transfer of assets;
(ii)
transferring the asset to another organ of state at market related value
or, when appropriate, free of charge;
(a)
(iii)
selling the asset; or
(iv)
destroying the asset.
(3)
The accounting officer must ensure that –
immovable property is sold only at market related prices except when the
public interest or the plight of the poor demands otherwise;
(b)
movable assets are sold either by way of written price quotations, a competitive
bidding process, auction or at market related prices, whichever is the most
advantageous;
(c)
firearms are not sold or donated to any person or institution within or outside
the Republic unless approved by the National Conventional Arms Control
Committee;
(d)
immovable property is let at market related rates except when the public
interest or the plight of the poor demands otherwise;
(e)
all fees, charges, rates, tariffs, scales of fees or other charges relating to the
letting of immovable property are annually reviewed;
(f)
where assets are traded in for other assets, the highest possible trade-in price
is negotiated; and
(g)
in the case of the free disposal of computer equipment, the provincial
department of education is first approached to indicate within 30 days whether
any of the local schools are interested in the equipment.
40.1
Evaluation criteria for the sale and letting of assets above R30 000 and
up to R1000 000.
44
(1) The following formula must be used to calculate the points for price in
respect of tenders with a Rand value equal to or above R30 000 and up to
R1000 000 and which relate to the sale and letting of assets;
Ps = 80 (1-Pt-Ph)
Ph
Where –
Ps = points scored for price of the bid under consideration.
Pt
= Rand value of the bid under consideration.
Rs = Rand value of highest acceptable bid.
2. A maximum of 20 points may be awarded to a bidder for achieving any of
the B-BBEE level contributor points as contemplated on section 29 (10) of
this policy.
3. The points scored for B-BBEE level contributor points must be added to the
points scored for price.
4. The bidder with highest number of points scored must be selected /
appointed or awarded the bid, unless there are legally justifiable reasons not
to do so.
40.2
Evaluation criteria for the sale and letting of assets above R1000.000
(1) The following formula must be used to calculate the points for price in
respect of tenders with a Rand value above R1000 000 which relate to the sale
and letting of assets;
Ps = 90 (1-Pt-Ph)
Ph
Where –
Ps =
Points scored for price of the bid under consideration.
45
Pt
=
Rs =
Rand value of the bid under consideration.
Rand value of highest acceptable bid.
(2) A maximum of 10 points may be awarded to a bidder for B-BBEE level
contributor points as contemplated by section 29 (10) of this policy.
(3) The points scored for specified goals must be added to the points scored
for price.
(4) The bidder with highest number of points scored must be selected /
appointed or awarded the bid, unless there are legally justifiable reasons
not to do so.
Risk management
Risk management must include –
41.
(1)
(a)
the identification of risks on a case-by-case basis;
(b)
the allocation of risks to the party best suited to manage such risks;
(c)
acceptance of the cost of the risk where the cost of transferring the risk is
greater than that of retaining it;
(d)
the management of risks in a pro-active manner and the provision of adequate
cover for residual risks; and
(e)
the assignment of relative risks to the contracting parties through clear and
unambiguous contract documentation.
Performance management
42.
The accounting officer must establish and implement an internal monitoring
system in order to determine, on the basis of a retrospective
analysis, whether the authorised supply chain management processes
were followed and whether the objectives of this Policy were achieved.
Part 4: Other matters
Prohibition on awards to persons whose tax matters are not in order
46
43.
(1)
No award above R30 000 (all applicable taxes included) may be made
in terms of this Policy to a person whose tax matters have not been
declared by the South African Revenue Service to be in order.
(2)
Before making an award to a person the accounting officer must first
check with SARS whether that person’s tax matters are in order.
(3)
If SARS does not respond within 7 days such person’s tax matters
may for purposes of sub-paragraph (1) be presumed to be in order.
Prohibition on awards to persons in the service of the state
44.
Irrespective of the procurement process followed, no award may be made
to a person in terms of this Policy –
(a)
who is in the service of the state;
(b)
if that person is not a natural person, of which any director, manager, principal
shareholder or stakeholder is a person in the service of the state; or
(c)
a person who is an advisor or consultant contracted with the municipality.
Awards to close family members of persons in the service of the state
45. The accounting officer must ensure that the notes to the annual financial
statements disclose particulars of any award of more than R2000 to a person
who is a spouse, child or parent of a person in the service of the state, or
has been in the service of the state in the previous twelve months, including –
(a)
the name of that person;
(b)
the capacity in which that person is in the service of the state; and
(c)
the amount of the award.
Ethical standards
46.
(1)
A code of ethical standards as set out in the “National Treasury’s
code of conduct for supply chain management practitioners
and other role players involved in supply chain management” is
hereby established for officials and other role players in the supply
chain management system of the municipality in order to promote –
(a)
mutual trust and respect; and
47
(b)
an environment where business can be conducted with integrity and in a fair
and reasonable manner.
(2)
(a)
A breach of the code of ethics must be dealt with as follows -
in the case of an employee, in terms of the disciplinary procedures of the
municipality envisaged in section 67(1)(h) of the Municipal Systems Act;
(b)
In the case a role player who is not an employee, through other appropriate
means in recognition of the severity of the breach.
(c)
In all cases, financial misconduct must be dealt with in terms of chapter 15
of the Act.
Inducements, rewards, gifts and favours to municipalities, officials and other
role players
47.
(1)
No person who is a provider or prospective provider of goods or services,
or a recipient or prospective recipient of goods disposed or to be disposed
of may either directly or through a representative or intermediary promise,
offer or grant –
(a)
any inducement or reward to the municipality for or in connection with the
award of a contract; or
(b)
any reward, gift, favour or hospitality to –
(i)
any official; or
(ii)
any other role player involved in the implementation of this Policy.
(2) The accounting officer must promptly report any alleged contravention of
subparagraph (1) to the National Treasury for considering whether the
offending person, and any representative or intermediary through which
such person is alleged to have acted, should be listed in the National
Treasury’s database of persons prohibited from doing business with the
public sector.
(3)
Subparagraph (1) does not apply to gifts of less than R350 in value.
48
Sponsorships
48.
The accounting officer must promptly disclose to the National Treasury
and the relevant provincial treasury any sponsorship promised, offered or
granted, whether directly or through a representative or intermediary, by any
person who is –
a) a provider or prospective provider of goods or services; or
b) a recipient or prospective recipient of goods disposed or to be disposed.
Objections and complaints
49.
Persons aggrieved by decisions or actions taken in the implementation of
this supply chain management system, may lodge within 14 days of the
decision or action, a written objection or complaint against the decision or
action.
Resolution of disputes, objections, complaints and queries
50.
(1)
The accounting officer must appoint an independent and impartial
person, not directly involved in the supply chain management
processes –
(a)
to assist in the resolution of disputes between the municipality and other
persons regarding (i)
any decisions or actions taken in the implementation of the supply chain
management system; or
(ii)
any matter arising from a contract awarded in the course of the
supply chain management system; or
(b)
to deal with objections, complaints or queries regarding any such decisions or
actions or any matters arising from such contract.
(2)
The accounting officer, or another official designated by the
accounting officer, is responsible for assisting the appointed person
to perform his or her functions effectively.
(3)
The person appointed must –
49
(a)
strive to resolve promptly all disputes, objections, complaints or queries
received; and
(b)
submit monthly reports to the accounting officer on all disputes, objections,
complaints or queries received, attended to or resolved.
(4)
A dispute, objection, complaint or query may be referred to the
relevant provincial treasury if –
(a)
the dispute, objection, complaint or query is not resolved within 60 days; or
(b)
no response is forthcoming within 60 days.
(5)
If the provincial treasury does not or cannot resolve the matter, the
dispute, objection, complaint or query may be referred to the National
Treasury for resolution.
(6)
This paragraph must not be read as affecting a person’s rights to
approach a court at any time.
Contracts providing for compensation based on turnover
51.
If a service provider acts on behalf of a municipality to provide any service or
act as a collector of fees, service charges or taxes and the compensation
payable to the service provider is fixed as an agreed percentage of turnover
for the service or the amount collected, the contract between the service
provider and the municipality must stipulate –
(a)
a cap on the compensation payable to the service provider; and
(b)
that such compensation must be performance based.
Short title and Commencement
52.
This Policy is called the Greater Tubatse Municipality : 2nd Amended B-BBEE
Aligned Supply Chain Management Policy, and takes effect on the
07 DECEMBER 2011.
50
51
52
53
54
GREATER TUBATSE
LOCAL MUNICIPALITY
PRINCIPLES AND POLICY ON
INDIGENT CONSUMERS
Policy to be implemented 1 July 2012
1
PRINCIPLES AND POLICY ON SUBSIDY SCHEME FOR INDIGENT HOUSEHOLDS
1.
INTRODUCTION
1.1
The Municipal Council must give priority to the basic needs of the community, promote the
social and economical development of the community and ensure that all residents and
communities in the municipality have access to at least the minimum level of basic municipal
services in terms of Section 152(1) (b) and 153(b) of the Constitution.
1.2
Basic services are generally regarded to be access to electricity, access to clean water within
a reasonable distance of one’s dwelling, basic sanitation, solid waste removal and access to
and availability of roads.
1.3
The Constitution recognises Local Government as a distinct sphere of Government and as
such also entitles Local Government to a share of nationally raised revenue, which will enable
it to perform their basic function of providing essential services to the community within their
boundaries.
1.4
The key purpose of an indigent subsidy policy is to ensure that households with no or lower
income are not denied a reasonable service, and on the contrary the Municipality is not
financially burdened with non-payment of services. Provided that grants are received and
funds are available, the indigent subsidy policy should remain intact.
1.5
To achieve the purpose it is important to set a fair threshold level, and then to provide a fair
subsidy of tariffs.
1.6
The consumer, in order to qualify as an indigent, needs to complete the necessary
documentation as required and agree to regulations and restrictions stipulated by Greater
Tubatse Municipality.
2.
2.1
The purpose of this policy is to ensure that the subsidy scheme for indigent households forms
part of the financial management system of Greater Tubatse Municipality and to ensure that
the same procedure is followed for each individual case.
3.
CRITERIA USED FOR IDENTIFICATION TO QUALIFY FOR INDIGENT SUPPORT
3.1
Grants-in-aid may, within the financial ability of the Municipality, be allocated to household
owners or tenants of premises who receive electricity (directly from Eskom), refuse removal,
water and sewer (rendered per service level agreement for Greater Sekhukhune DM) and
assessment rate services, in respect of charges payable to the Municipality for such services.
2
3.2
These grants may be allocated if such a person or any other occupier of the property
concerned can submit proof or declare under oath that all occupants over 18 years of age or
in the case of child headed household consumers had no income or a verified total gross
monthly income of less than the amount indicated in terms of the definitions below for the
preceding three consecutive months.
3.2.1
Definition of an Indigent. If the total monthly income of all occupants is not more than an
amount as determined by Council from time to time. These amounts will be determined at the
beginning of every financial year and will be applied for the duration of that particular financial
year. Currently the income amount is deemed to be equal to 2(two) times the social
pension.
3.2.2
Definition of Child Headed Families. Families headed by children qualify for special rebates
according to monthly household income. To qualify for the rebate the head of the family must:a. Occupy the property as his/her normal residence.
b. Not be older than 18 years of age.
c.
Still be a student or jobless.
d. Be in receipt of a total monthly income from all sources not exceeding an amount to be
determined annually by the Municipality.
e. Entry level amount for the 2010/2011 financial year is determined as equal to two times
the social pension.
3.3
Only one application per person (household consumer) in respect of one property shall qualify
for consideration. A business, school, body association, club or governing body shall not
qualify for consideration.
3.4
The subsidy will apply to the owner or tenant of the property concerned.
3.5
The subsidy will not apply in respect of households owning more than one property and who
will therefore not be classified as indigent.
4.1
APPLICATION AND AUDIT FORM
4.1
An application form for Indigent Household Subsidy must be completed by all consumers who
qualify in terms of this policy.
4.2
The account holder must apply in person and must present the following documents upon
application:-
4.2.1
The latest Municipal account in his/her possession.
3
4.2.2
The accountholder's identity document.
4.2.3
An application form indicating the names and identity numbers of all occupants/residents over
the age of 18 years, who reside at the property.
4.2.4
Documentary proof of income where possible or an affidavit of financial status.
4.2.5
Statement of monthly income and expenditure.
4.3
All applications must be verified by an official or municipal agent appointed by Council.
The relevant Ward Councillor must be involved during the evaluation process and must
verify the application together with the relevant officials and local community leaders
or ward committee members appointed by Council in this regard.
4.4
Application forms must be read in conjunction with the policy proposed and form part of
Council's indigent policy.
4.5
The list of indigent households may be made available at any time to the Information Trust
Corporation (ITC) for the purpose of exchanging credit information. Households qualifying for
consumer credit elsewhere will not be regarded as indigents. Indigents with pensioner status
are excluded.
4.6
If an application is favourably considered, a subsidy will only be granted during that municipal
financial year and the subsequent twelve (12) month budget cycle. The onus will rest on the
approved account holders to apply for relief on an annual basis.
4.7
Any aggrieved person who was not successful in the application to be recognised as indigent
may lodge an appeal with the Chief Financial Officer within a period of ten (10) days from the
date on which the aforesaid decision was communicated to the applicant.
4.7.1
The Appeals Board whose composition shall be approved by council shall review all appeals
within thirty (30) days from receipt of the appeal.
4.8
For the purposes of transparency, on an annual basis, the following key information of the
recipient’s indigent support will be made available to the public for scrutiny:-
4.9

Names of household consumers receiving relief for the prescribed period;

Stand number where services are rendered to the recipients; and

Number of dependants residing on the property.
Any resident may query the qualification of a recipient in writing, within 30 days from the date
of publication, to the Council.
4
5.
DRAFTING AND MAINTENANCE OF AN INDIGENT REGISTER
5.1
The Chief Financial Officer will be responsible to compile and administer the database for
households registered in terms of this policy.
5.2
Registration will take place on dates and at times and places determined by the Council, but
shall generally be undertaken during February and /or March each year. The Municipal
Manager or his/her delegate will provide assistance to persons who cannot read or write, at
such times and places as are specified in the notices published to indicate that the registration
programme is to take place.
5.3
Council reserves the right to send officials or its agents to premises/households receiving
relief from time to time for the purpose of conducting an on-site audit of the details supplied.
6.
PENALTIES AND DISQUALIFICATION FOR FALSE INFORMATION
6.1
Applicants will be required to sign and submit a sworn affidavit, to the effect that all information
supplied is true and that all income, i.e. from formal and/or informal sources, is declared.
6.2
Any person who supplies false information will be disqualified from further participation in
the subsidy scheme. He/she will also be liable for the immediate repayment of all subsidies
received and all debts including arrears that have previously been written off, and the
institution of criminal proceedings, as Council may deem fit.
6.3
The onus also rests on indigent support recipients to immediately notify Council of any
changes in their indigence status.
7.
SERVICES TO BE SUBSIDISED
7.1
Water
7.1.1
All registered indigents consumers will only receive the first 6 kilolitres of water fully
subsidised. All usage thereafter will be charged against the normal tariffs as approved by
Council
5
7.2
Sewerage
7.2.1
All registered indigents shall be subsidised for sewerage services as determined and provided
for by the Council in the annual budget from time to time. A subsidy, determined at the
beginning of every financial year and not more than the applicable tariff for that year, will be
applied for the duration of that particular financial year. The amount of the subsidy will be
determined and approved as part of the tariff policy applicable for the financial year.
7.3
Refuse Removal
7.3.1
All registered indigents shall be subsidised for refuse removal services as determined and
provided for by the Council in the annual budget from time to time. A subsidy, determined at
the beginning of every financial year and not more than the applicable tariff for that year, will
be applied for the duration of that particular financial year. The amount of the subsidy will be
7.4
Electricity
7.4.1
This service is not rendered by the Municipality but by Escom directly
7.5
Property Rates
7.4.1
All registered indigents shall be subsidised for property rates services as determined and
provided for by the Council in the annual budget from time to time. A subsidy, determined at
the beginning of every financial year and not more than the applicable tariff for that year, will
be applied for the duration of that particular financial year. The amount of the subsidy will be
8.
TARIFF POLICY
8.1
The Local Government Municipal Systems Amendment Act (MSA), 2003, Act No 44 of 2003
stipulates that a Municipal Council must adopt and implement a tariff policy on the levying of
fees for municipal services provided by the municipality itself or by way of service delivery
agreements and which complies with the provisions of the Act and with any other applicable
legislation.
8.2
A tariff policy must reflect, amongst others, at least the following principles, namely that:-
6
8.2.1
The amount individual users pay for their services should generally be in proportion to their
use of that service;
8.2.2
Poor households must have access to at least basic services through
tariffs that cover only operating and maintenance costs;

special tariffs or life line tariffs for low levels of use or consumption of services or for
basic levels of service; or

8.2.3
any other direct or indirect method of subsidisation of tariffs for poor households; and
The extent of subsidisation of tariffs for poor households and other categories of users should
be fully disclosed.
9
SOURCES OF FUNDING
9.1
The amount of subsidisation will be limited to the amount of the equitable share received on
an annual basis. This amount may be varied on a yearly basis according to the new allocation
for a particular financial year.
9.2
If approved as part of the tariff policy the amount of subsidisation may at any time be
increased through cross subsidisation, i.e. step tariff system in which case paragraph 8.2.3
shall apply.
10
METHOD OF TRANSFER AND THE VALUE OF THE SUBSIDY
10.1
No amount shall be paid to any person or body, but shall be transferred on a monthly basis as
a credit towards the approved account holder’s municipal services account in respect of the
property concerned.
10.2
Arrear amounts shall not qualify for any assistance and shall not be taken into consideration.
Calculations shall be based on the monthly current accounts only and in accordance with the
approved tariff policy.
11
ARREAR ACCOUNTS
11.1
The approved account holder shall remain responsible for any outstanding amount at the date
of application as well as for future charges.
11.2
The arrears on the accounts of households, approved as indigent, will be submitted to
the CFO( for amounts less than R20000-00)
to be written off in full (including any
interest charged) or to the Municipal Manger if the amount is between R20001 and
R50000 or to Council if the amount is more than R50000 to be written off in full. This will
be done after the expiry of 3 months from the date of being registered as an indigent.
7
This submission will only be valid as a once-off exercise after approval and will not be
applicable for future consumption in excess of the approved subsidy accumulated.
8
12
RESTORING SERVICES TO QUALIFIED HOUSEHOLDS
12.1
If an application is approved services will be restored free of charge. If services are to be
suspended thereafter in terms of the approved credit control policy the approved tariff for
reconnection will be payable.
13
13.1
SERVICES IN EXTENT TO AVAILABLE FUNDING
Where restriction of consumption applies to a particular service, applicants may not refuse to
be restricted in terms of Council policy. Where restrictions are not possible the account holder
will be responsible for the consumption in excess of the approved subsidy.
14
14.1
CREDIT CONTROL POLICY TO BE APPLIED FOR INDIGENT HOUSEHOLDS
Aim of the Credit Control Policy
14.1.1 The credit control policy aims to achieve the following:
To distinguish between those who can and cannot genuinely pay for services;

To get those who cannot pay to register with the municipality so that they are given
subsidies;

To enable the municipality to determine and identify defaulters to ensure appropriate
credit control procedures; and

14.2
To establish an indigent directory of all persons who comply with the policy.
Obligation to Pay
14.2.1 The policy on provision of services should endeavour to provide services in accordance with
the amount available for subsidisation.
14.2.2 It is however important to note that if the subsidy received does not cover the full account the
consumer is still responsible for the balance between the full account and the subsidy
received.
14.2.3 Where applicable, credit control must still be applied, in accordance with the approved credit
control policy, for these outstanding amounts.
15.
REPORTING REQUIREMENTS
15.1
The municipal manager shall report on a monthly basis to the Executive Committee for the
month concerned and by municipal ward:-
9
15.1.1 The number of households registered as indigents and a brief explanation of any movements
in such numbers;
15.1.2 The monetary value of the actual subsidies and rebates granted; and
15.1.3 The budgeted value of the actual subsidies and rebates concerned; and the above information
cumulatively for the financial year to date.
15.2
The Executive Committee shall submit the above reports on a quarterly basis to Council and
to the municipalities ward committees if so requested.
16
16.1
This policy shall be implemented once approved by Council. All future applications for indigent
registrations must be considered in accordance with this policy.
16.2
In terms of section 17(1) (e) of the MFMA this policy must be reviewed on annual basis and
the reviewed policy tabled to Council for approval as part of the budget process.
*********************************************
10
GREATER TUBATSE
LOCAL MUNICIPALITY
POLICY AND PRINCIPLES ON THE
WRITING OFF OF IRRECOVERABLE
DEBT
Policy to be implement 1 July 2012
PRINCIPLES AND POLICY ON THE WRITING OFF OF IRRECOVERABLE DEBT
1.
INTRODUCTION
1.1
To ensure that household consumers with no or lower income are not denied a reasonable
service and that the municipality is not financially burdened with non-payment of services, the
Council of Greater Tubatse Municipality approved a revised Indigent Policy at the Council
meeting on the 31 th May 2010
1.2
However, the Council is faced with a significant amount of outstanding debt and the
continuous defaulting by certain consumers who can afford to pay for services. The Council
approved a revised Credit Control and Debt Collection Policy at the Council meeting on the 31
th May 2010
1.3
Despite strict enforcement of the above policies, Council will continuously be confronted by
circumstances requiring the possible write-off of irrecoverable debt. To allow this the approved
Credit Control Policy, inter alia, stipulated that:-
1.3.1
Par 5 (1) (c) - The Municipal Manager must establish effective administrative mechanisms,
processes and procedures to collect money that is due and payable to the municipality.
1.4
In addition, the policy further stipulates that:-
1.4.1
Par 19 (2) - Council must appoint a committee in terms of its delegations to review and
recommend to Council to approve all bad debt write off cases.
2.
2.1
The purpose of this policy is to ensure that the principles and procedures for writing off
irrecoverable debt are formalised.
3.
RESPONSIBILITY / ACCOUNTABILITY
3.1
The Council has the overall responsibility for adopting and approving the Policy on Writing Off
of irrecoverable debt.
4.
POLICY PRINCIPLES
4.1
The following are the guiding principles in implementing the Policy on Writing Off of
Irrecoverable Debt:-
1
4.1.1
The policy is in accordance with the Local Government Municipal Finance Management Act
2003, Local Government Municipal Systems Act 2000, as amended and other related
legislation.
4.1.2
Before any debt is written off it must be proved that the debt has become irrecoverable. To
ensure that recommendations for write off are consistent and accurate, irrecoverable debt will
be defined as:-
4.1.2.1 Where the tracing of the debtors is unsuccessful; and
4.1.2.2 All reasonable steps, at the discretion of the appointed write off committee, were taken by the
officials to recover the debt.
4.1.3
Bad debt write offs must be considered in terms of cost benefit; when it becomes too costly to
recover and the chances of collecting the debt are slim, a write off should be considered.
4.1.4
Time value of money is very important because the older the debt becomes, the more difficult
and costly it becomes to collect. It is therefore imperative that a proper system of credit control
is implemented and maintained to avoid debt reaching the stage of becoming too expensive to
recover.
4.1.5
Differentiation must be made between those household consumers who cannot afford to pay
for basic services and those who just do not want to pay for these services.
4.1.6
Debt can only be written off if the required provision exists in the Municipality’s budget and/ or
reserves.
5.
CATEGORIES OF DEBTORS THAT MAY QUALIFY FOR THE WRITING OFF OF
IRRECOVERABLE DEBT
5.1
Approved Indigent Household Consumers in terms of the Municipality’s Indigent Policy.
5.1.1
Upon approval for registration as an indigent household consumer, the debtor’s outstanding
balance as at the date of approval is written off at the expiry of six months since registration as
an indigent.
5.1.2
Any new arrears accumulated by the debtor (i.e. any amounts in excess of the indigent
allowance for free basic services) whilst registered as an indigent consumer, will not qualify to
be written off and must be dealt with strictly in accordance with the Municipality’s Credit
Control Policy and Indigent Household Policy.
2
5.2
Balances too small to recover considering the cost for recovery
5.2.1
Where final accounts have been submitted and paid by the respective consumer and the
remaining balance after finalisation of any final readings and other administrative costs results
in a balance of one hundred rand (R100) or less, such account must be forwarded once to the
consumer for payment.
5.2.2
Where such account is not paid by the respective consumer within a period of sixty (60) days
such amounts will automatically be written off subject to the provisions of Section 6.4 below.
5.3
Insolvency of the Debtor and Insolvent Deceased Estates
5.3.1
Where a debtor becomes insolvent the Municipality must ensure that a creditor’s claim is
timeously registered. Any amount not being recovered due to insufficient funds or if there is a
risk of a contribution being made to an insolvent estate must, after notification, be written off
subject to the provisions of Section 6.4 and 6.5 below.
5.3.2
In case of death of the debtor a creditor’s claim must be timeously registered against the
deceased’s estate. Any amount not being recovered due to insufficient funds or if there is a
risk of a contribution being made to a deceased estate must, after notification, be written off
subject to the provisions of Sections 6.4 and 6.5 below.
5.4
Untraceable Debtors
5.4.1
Where for any reason the forward address of a debtor becomes untraceable or the debtor
becomes untraceable from the current address, such account must be handed over to a
collection agent for recovery of the debt. The collection agent will be paid an all-inclusive fee
of not more than 10% of the amount that was collected. The Terms of Reference for such
collection agent must include the appointment of a tracing agent to locate the debtor. Should a
debtor be untraceable, the collection agent must report to the Municipality on the actions that
were taken to attempt to trace the debtor.
5.4.2
Any amount owed by a debtor that has become untraceable must, after notification, be written
off or sold to a debt collection agency at a discount.
5.4.3
Debt written off in the above instances will automatically result in the debtor being reported to
the credit bureau by the Municipality.
3
5.5
Special Arrangements in order to obtain a Clearance Certificate
5.5.1
In terms of legislation the Municipality will under normal circumstances not issue a clearance
certificate on any property unless all outstanding amounts are paid to date. However due to
the possible inefficiency of the Municipality to implement its credit control policy it might be
possible that such a property may have accumulated such a significant outstanding balance
over a period of time that it may not be within the ability of the new owner to pay such an
amount in order to obtain a clearance certificate.
5.5.2
Where such circumstances may prevail the prospective new owner may apply to the
Municipality for relief of such outstanding debt or a portion thereof.
5.5.3
Upon receiving, such application must be submitted to the committee for consideration. In
reviewing such application, the committee must ensure that:-
5.5.3.1 All reasonable measures have already been taken to recover the outstanding amount from the
current debtor.
5.5.3.2 The prospective buyer of the property is not in a financial position to settle the outstanding
amount before a clearance certificate is issued.
5.5.3.3 It is not in the interest of the municipality and/ or the community to withhold a clearance
certificate before the outstanding debt is fully paid.
5.6
Special Incentives introduced by Council for Household Consumers in terms of the
Credit Control and Debt Collection Policy
5.6.1 Notwithstanding the Municipality’s Credit Control Policy a debtor may enter into a written
agreement with the Municipality to repay any outstanding and due amount to the Municipality
under the following conditions:5.6.1.1 The outstanding balance, costs and any interest thereon shall be paid in regular and
consecutive monthly instalments;
5.6.1.2 The current monthly amount must be paid in full; and
5.6.1.3 The written agreement has to be signed on behalf of the Municipality by a duly authorised
officer.
4
5.6.2 In order to determine monthly instalments, a comprehensive statement of assets and liabilities
and income and expenditure, must be provided by the debtor and reviewed by a finance official.
To ensure the continuous payment of such arrangement the amount determined must be
affordable to the consumer (i.e. amount not to exceed 25% of gross income), taking into account
that payment of the monthly current account is a prerequisite for concluding an arrangement.
5.6.3 Due to ineffective implementation of credit control measures in the past, the majority of
household consumers have accumulated significant arrear amounts and that these consumers
are not in a position to pay off these arrear amounts in full together with their current monthly
accounts. In order to improve the current payment levels from consumers the Municipality has
resolved to implement special incentives to address the arrear debt.
5.6.4 To encourage consumers to pay off arrear debt Council will enter into a once-off arrangement,
with a household consumer only, to pay off his/ her arrear debt over a period of time in terms of
specific incentives. The main aim of an agreement will be to promote full payment of the current
account and to address the arrears on a consistent basis.
5.6.5 Writing off any debt in terms of such an agreement will be strictly in accordance with the
provisions set out in the Municipality’s Credit Control and Debt Collection Policy.
5.6.6 Levying of interest on arrear accounts should be immediately suspended upon completion a
debt agreement. This will allow debtors to see progress on their accounts as continued
payments will reflect a decrease on the balance.
5.6.7 As long as the agreement is honoured no further interest will be added. However, in case of
default the suspended amount will be reversed and interest will again be levied from the date of
default.
5.6.8 Where a debtor pays 50% or more on the principal portion of his/her arrear account or settles
the principal portion of the arrear account in full through a once-off payment, all interest
penalties on arrear amounts will be written off immediately.
5.6.9 Where arrangements are made to pay off the principal portion of the arrear amount in
instalments, such instalments should be determined on the outstanding amount excluding arrear
interest. Such an arrangement should be honoured for at least a six-month consecutive period
where-after interest on arrear amounts will be written off on a monthly basis. This arrangement
will imply that upon payment of the final instalment all interest on arrear amounts will have been
written off.
5
5.6.10 Where debtors fail to honour their arrangements without prior consultation interest will be
reinstated and added to the original debt amount.
5.6.11 The arrangement referred to in paragraph 5.6.5 may be extended to other Poverty Alleviation
& Job Creation Strategies that the Municipality may implement. Such strategies may include:5.6.11.1 The casual/contract employment of a debtor in a particular Municipal project (i.e. refuse
collection, road maintenance, verge cutting etc.)
5.6.11.2 A 50% cash payment to the debtor and 50% payment that will be credited against the
debtor’s arrear account.
5.6.11.3 The accounting treatment shall be that the project or programme will be debited (charged)
full 100% as this will be the input cost of the labour (100% cost paid out as 50% cash paid to
the debtor and 50% credited against the debtor’s arrear account as though it were a cash
payment).
5.6.12 The purpose of the above strategy/arrangement is to instil a sense of pride to the customers of
the Municipality that cannot pay off their arrears, whilst extending services delivery, creating
jobs, and alleviating poverty, and at the same time reducing the Debtors Book and enhance
the financial status and image of the Municipality.
5.6.13 Any amount to be written off in terms of paragraph 5.6 above must be subject to the provision
of Section 6.4 and 6.5 below.
6.
ESTABLISHMENT OF A COMMITTEE TO MONITOR ANY DEBT TO BE WRITTEN OFF
6.1
Council will establish and appoint a Committee to monitor the implementation of this Policy.
6.2
The Committee will consist of the following members:-
6.2.1 The Municipal Manager (Chairperson).
6.2.2 Chief Financial Officer (Alternative Chairperson).
6.2.3 Chairperson of the Portfolio Committee for Finance.
6.2.4 One member of the Portfolio Committee for Finance to be nominated by the Portfolio Committee
for Finance.
6.3
The above Committee will meet at least quarterly to receive and review a report from the Chief
Financial Officer containing full details of any actions taken by officials with respect to this
Policy, and to consider any circumstances not covered by this Policy.
6.3.1 The quorum for the Committee shall be 50% of the members plus one.
6
6.3.2 Formal minutes of Committee meetings must be prepared and submitted to Council.
6.4
The Chief Financial Officer will, after thorough review of any applications in terms of this Policy,
be delegated to write off any amounts to the maximum of:-
6.4.1 in the case of a household consumer an amount of R10,000 (excluding interest and penalties)
per submission; and
6.4.2 in the case of a business consumer an amount of R20,000 (excluding interest and penalties) per
submission.
6.5
Any amount in excess of the delegation provided for in paragraph 6.4 above must be submitted
together with a recommendation to the Municipal Manager for consideration. The Municipal
Manager will, after thorough review of any recommendation by the Chief Financial Officer and in
terms of this Policy, be delegated to write off any amounts to the maximum of:-
6.5.1 in the case of a household consumer an amount of R30,000 (excluding interest and penalties)
per submission; and
6.5.2 in the case of a business consumer an amount of R50,000 (excluding interest and penalties) per
submission.
6.6
Any amount in excess of the delegation provided for in paragraph 6.5 above may only be
reviewed by the Executive Mayor and must be submitted together with a recommendation to
Council for consideration.
6.7
All amounts to be written off in terms of Section 6.4 and Section 6.5 above must be considered
individually and each case on its own merits must be separately reported to the Committee.
7.
7.1
This policy shall be implemented once approved by Council. All future submissions for the
writing off of debt must be considered in accordance with this policy.
7
2012/2013
Service Delivery and Budget
Implementation Plan
GENERAL INFORMATION
I.
Executive Committee
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
(x)
II.
Cllr. N.J. Mahlake (Mayor)
Cllr. P.A. Mohlala (Portfolio Head: Technical services)
Cllr. S.C. Mphogo (Portfolio Head: Finance Services)
Cllr. .S.O. Serothwane (Portfolio Head: Economic and Land Development)
Cllr. D.M. Nkosi (Portfolio Head: Corporate Services)
Cllr. M.R. Khoza (Portfolio Head: Community Services)
Cllr. M. E. Makgoga (Portfolio Head: Economic and Land Development)
Cllr. R Lowerence (Deputy Head: Community Services)
Cllr. M.A. Malatji (Deputy Head: Technical Services)
Cllr. L.D. Moraba (Deputy Head: Finance Services))
Addresses
The Greater Tubatse Municipality
Box 206
Burgersfort
1150
No.01 kastania Street
Burgersfort
Tel: (013) 231 1000
Fax: (013) 231 7467
Website: http://www.tubatse.gov.za
III.
Contacts
H.L. Phala
Municipal Manager
Email: [email protected]
This document has been approved by the Mayor in terms of Chapter 7 Section 72(3)(b) of the
Municipal Finance Management Act No.56, 2003.
_______________________
Mayor
J. Mahlake
Date: ____________________
_______________________
Municipal Manager
H.L. Phala
Date: ______________________
_______________
_____________________
Mayor’s foreword
2012/13 IDP/Budget consultation processes are over. We were able to touch bases with all 31 wards to
listen to their inputs into the strategic plan of the municipality (IDP) and to pave their own future. This
was line with the Freedom Charter and Batho pele principles which indicated that people shall govern
and that people should be consulted on the services their receive respectively. We would like to thank
those who participated and those who open the venues for the municipality to conduct these glorious
processes.
Aluta continue. Our people have been clear of their needs, which is more service delivery with
accelerated pace. Our 2011/12 financial year third quarter performance was standing at 64% when the
quarter ended with few projects still outstanding. We were unable to finalize most of our electricity
projects and roll them over to the 2012/13. We learnt a lesson from that experience and mechanisms
are in place to ensure that our projects are completed within its time span in the 2012/13 financial year.
For 2012/13 financial year the municipality has allocated R271, 140,547 for services delivery to its
citizen. This allocation constitutes 4.2% of the 2011/12 allocation. For this financial year the
municipality has priorities the following:
v Reduction of electricity backlog, hence Operation mabone;
v Empowerment of hawkers, hence erection of hawker’s stalls;
v Restore our dignity, hence fencing of rural cemeteries and implementation of PPP waste
management project;
v Empowerment of special groups;
v Empowerment of Councillors and Ward committees , hence R850 000 is allocated for their training;
v Job creation through running all our capital projects as EPWP.
We agree it is not enough, but we hope it will impact positively in the attainment of millennium goals as
set by the National government. Together we can do more!!!
The Mayor
Cllr. Mahlake N.J
Monthly Projections of Expenditure by Vote and Reve
July
2012
Opex Budget
Monthly Projections
Vote
R
Capex Budget
Rev Budget
R
R
Expenditure and Revenue by Vote
110005 Corporate Services
4 782 870
-16 667
120005 Municipal Manager
915 166
0
130005 Financial Services
2 942 466
-15 053 179
140005 Technical Services Admin
956 808
0
140020 Technical Services Roads
1 625 504
140025 Refuse Removal
2 166 415
-1 436 980
140030 Municipal Buildings
893 438
-62 500
150005 Community Services
707 092
0
150010 Traffic and Protection Services
942 038
0
-792 917
150015 Cemetries
327 382
208 333
-6 667
150020 Social Services
235 428
-768
1 231 439
-94 417
170005 Economic & Land Development
Total By Vote
2 586 667
17 726 045
-266 867
2 795 000
-17 730 960
July
2011
Rev Projected
Monthly Projections
R
Revenue by Source
Assesments Rates
Refuse Fees
Equitable Share
Equitable Share councillor contribution
Financial Management Grant
Mun. System improve Grant
subsidy province
Municipal Infrastructure Grant
Permits Licences
Licensing - Hawkers
Membership fees
Building Plan & Inspection Fees
3 730 833
1 436 980
0
0
0
0
83 333
0
1 250
2 750
667
83 333
Burial Fees
Libraries Fees
Clearance Certificate
Driver's Licences
Current and General
Investments
Interest on outstanding Debtors
LG- SETA
Learner's Licences
Licensing-change of Lic/Appl fees
6 667
101
3 333
125 000
41 667
37 500
54 167
16 667
125 000
208 333
Licensing-commission on Vehicles
Registration
Outdoor Advertisement
Late payment
Rent -Housing
Traffic Fines
Valuation Cetificate
Total Revenue by Source
250 000
8 333
375 000
62 500
83 333
54
6 736 801
nditure by Vote and Revenue by Source
Opex Budget
R
August
September
2012
2012
Capex Budget
R
Rev Budget
Opex Budget
R
Capex Budget
R
R
Rev Budget
R
4 782 870
-16 667
4 782 870
-16 667
915 166
0
915 166
0
2 942 466
-15 053 179
2 942 466
-15 053 179
956 808
0
956 808
0
-266 867
1 625 504
2 166 415
-1 436 980
2 166 415
-1 436 980
893 438
-62 500
893 438
-62 500
707 092
0
707 092
0
1 625 504
2 586 667
2 586 667
-266 867
942 038
0
-792 917
942 038
0
-792 917
327 382
208 333
-6 667
327 382
208 333
-6 667
235 428
-768
235 428
-768
1 231 439
-94 417
1 231 439
-94 417
-17 730 960
17 726 045
17 726 045
2 795 000
2 795 000
August
September
2011
2011
-17 730 960
Rev Projected
Rev Projected
R
R
3 730 833
1 436 980
40 748 333
2 517 000
1 500 000
800 000
0
734 133
1 250
2 500
417
83 333
3 730 833
1 436 980
0
0
0
0
83 333
0
1 250
2 750
417
83 333
6 667
101
3 333
125 000
41 667
37 500
54 167
16 667
125 000
6 667
101
3 333
125 000
41 667
37 500
54 167
16 667
125 000
208 333
208 333
250 000
8 333
375 000
62 500
83 333
54
250 000
8 333
375 000
62 500
83 333
54
52 952 435
6 736 552
Monthly Projections of Expenditure b
Total
October
2012
Opex
Capex
Rev
Opex Budget
R
R
R
Capex Budget
R
14 348 610
-50 000
4 782 870
2 745 497
0
915 166
8 827 397
-45 159 538
2 942 466
2 870 425
0
956 808
4 876 513
7 760 000
-800 600
1 625 504
2 586 667
6 499 246
0
-4 310 939
2 166 415
0
2 680 313
0
-187 500
893 438
0
2 121 276
0
0
707 092
0
2 826 113
0
-2 378 750
942 038
0
982 147
625 000
-20 000
327 382
208 333
706 284
-2 303
235 428
3 694 316
-283 250
1 231 439
-53 192 879
17 726 045
53 178 135
8 385 000
Total
2 795 000
October
2011
11 192 500
4 310 939
40 748 333
2 517 000
1 500 000
800 000
0
734 133
3 750
7 500
1 251
250 000
20 000
303
10 000
375 000
125 000
112 500
162 500
50 000
375 000
625 000
750 000
25 000
1 125 000
187 500
250 000
163
66 258 371
ections of Expenditure by Vote and Revenue by Source
October
November
2012
2012
Rev Budget
Opex Budget
R
Capex Budget
R
R
Rev Budget
R
-16 667
4 782 870
-16 667
0
915 166
0
-15 053 179
2 942 466
-15 053 179
0
956 808
0
-266 867
1 625 504
2 586 667
-266 867
-1 436 980
2 166 415
0
-1 436 980
-62 500
893 438
0
-62 500
0
707 092
0
0
-792 917
942 038
0
-792 917
-6 667
327 382
208 333
-6 667
-768
235 428
-768
-94 417
1 231 439
-94 417
-17 730 960
17 726 045
2 795 000
-17 730 960
October
November
2011
2011
Rev Projected
Rev Projected
R
R
3 730 833
1 436 980
0
0
0
0
83 333
0
1 250
2 750
417
83 333
3 730 833
1 436 980
40 748 333
2 517 000
1 500 000
800 000
0
734 133
1 250
2 500
417
83 333
6 667
101
3 333
125 000
41 667
37 500
54 167
16 667
125 000
6 667
101
3 333
125 000
41 667
37 500
54 167
16 667
125 000
208 333
208 333
250 000
8 333
375 000
62 500
83 333
54
250 000
8 333
375 000
62 500
83 333
54
6 736 552
52 952 435
Total
December
2012
Opex Budget
Capex Budget
R
R
Opex
Rev Budget
R
Capex
R
R
4 782 870
-16 667
14 348 610
915 166
0
2 745 497
2 942 466
-15 053 179
8 827 397
956 808
0
2 870 425
1 625 504
2 586 667
-266 867
4 876 513
7 760 000
2 166 415
0
-1 436 980
6 499 246
0
893 438
0
-62 500
2 680 313
0
707 092
0
0
2 121 276
0
942 038
0
-792 917
2 826 113
0
327 382
208 333
-6 667
982 147
625 000
235 428
-768
706 284
0
1 231 439
-94 417
3 694 316
-17 730 960
53 178 135
17 726 045
2 795 000
8 385 000
Total
December
2011
Rev Projected
R
3 730 833
1 436 980
0
0
0
0
83 333
0
1 250
2 750
417
83 333
11 192 500
4 310 939
40 748 333
2 517 000
1 500 000
800 000
0
734 133
3 750
7 500
1 251
250 000
6 667
101
3 333
125 000
41 667
37 500
54 167
16 667
125 000
20 000
303
10 000
375 000
125 000
112 500
162 500
50 000
375 000
208 333
625 000
250 000
8 333
375 000
62 500
83 333
54
750 000
25 000
1 125 000
187 500
250 000
163
6 736 552
66 258 371
Monthly Projections of Expenditure by Vote and Revenue by Source
Total
Rev
Total
January
February
2013
2013
Opex Budget
Capex Budget Rev Budget
Opex Budget
Capex Budget
R
R
R
R
R
-50 000
4 782 870
-16 667
4 782 870
0
915 166
0
915 166
-45 159 538
2 942 466
-15 053 179
2 942 466
0
956 808
0
956 808
-800 600
1 625 504
2 586 667
-266 867
1 625 504
2 586 667
-4 310 939
2 166 415
0
-1 436 980
2 166 415
0
-187 500
893 438
0
-62 500
893 438
0
0
707 092
0
0
707 092
0
-2 378 750
942 038
0
-792 917
942 038
0
-20 000
327 382
208 333
-6 667
327 382
208 333
-2 303
235 428
-768
235 428
-283 250
1 231 439
-94 417
1 231 439
-53 192 879
17 726 045
-17 730 960
17 726 045
2 795 000
2 795 000
January
February
2012
2012
Rev Projection
3 730 833
1 436 980
0
0
0
0
83 333
0
1 250
2 750
417
83 333
6 667
101
3 333
125 000
41 667
37 500
54 167
16 667
125 000
208 333
250 000
8 333
375 000
62 500
83 333
54
6 736 552
Revenue by Source
February
March
2013
2013
Total
Rev Budget
Opex Budget
R
R
R
Opex
R
Capex
R
R
-16 667
4 782 870
-16 667
14 348 610
0
915 166
0
2 745 497
-15 053 179
2 942 466
-15 053 179
50
0
956 808
0
2 870 425
-266 867
1 625 504
2 586 667
-266 867
4 876 513
7 760 000
-1 436 980
2 166 415
0
-1 436 980
6 499 246
0
-62 500
893 438
0
-62 500
2 680 313
0
0
707 092
0
0
2 121 276
0
-792 917
942 038
0
-792 917
2 826 113
0
-6 667
327 382
208 333
-6 667
982 147
625 000
-768
235 428
-768
706 284
-94 417
1 231 439
-94 417
3 694 316
-17 730 960
17 726 045
-17 730 960
44 350 788
2 795 000
February
March
2012
2012
Rev Projection
3 730 833
1 436 980
0
0
0
0
83 333
0
1 250
2 750
417
83 333
8 385 000
Total
Rev Projection
3 730 833
1 436 980
40 748 333
0
0
0
83 333
734 133
1 250
2 750
417
83 333
11 192 500
4 310 939
36 802 333
0
0
0
250 000
734 133
3 750
8 250
1 251
250 000
6 667
101
3 333
125 000
41 667
37 500
54 167
16 667
125 000
6 667
101
3 333
125 000
41 667
37 500
54 167
16 667
125 000
20 000
303
10 000
375 000
125 000
112 500
162 500
50 000
375 000
208 333
208 333
625 000
250 000
8 333
375 000
62 500
83 333
54
250 000
8 333
375 000
62 500
83 333
54
750 000
25 000
1 125 000
187 500
250 000
163
6 736 552
48 219 018
57 746 121
Monthly Projections of Expenditure by Vote and Revenue by Source
Total
Rev
Total
April
May
2013
2013
Opex Budget
Opex Budget
R
R
R
R
Capex Budget
R
-50 000
4 782 870
-16 667
4 782 870
0
915 166
0
915 166
-45 159 538
2 942 466
-15 053 179
2 942 466
0
956 808
0
956 808
-800 600
1 625 504
2 586 667
-266 867
1 625 504
2 586 667
-4 310 939
2 166 415
0
-1 436 980
2 166 415
0
-187 500
893 438
0
-62 500
893 438
0
0
707 092
0
0
707 092
0
-2 378 750
942 038
0
-792 917
942 038
0
-20 000
327 382
208 333
-6 667
327 382
208 333
-2 303
235 428
-768
235 428
-283 250
1 231 439
-94 417
1 231 439
-53 192 879
17 726 045
-17 730 960
17 726 045
2 795 000
2 795 000
April
May
2012
2012
Rev Projection
R
3 730 833
1 436 980
0
0
0
0
83 333
0
1 250
2 750
417
83 333
6 667
101
3 333
125 000
41 667
37 500
54 167
16 667
125 000
208 333
250 000
8 333
375 000
62 500
83 333
54
6 736 552
evenue by Source
May
June
2013
2013
Rev Budget
Opex Budget
R
R
Total
Rev Budget
Capex Budget
R
Opex
R
R
-16 667
4 782 870
-16 667
14 348 610
0
915 166
0
2 745 497
-15 053 179
2 942 466
-15 053 179
8 827 397
0
956 808
0
2 870 425
-266 867
1 625 504
2 586 667
-266 867
4 876 513
-1 436 980
2 166 415
0
-1 436 980
6 499 246
-62 500
893 438
0
-62 500
2 680 313
0
707 092
0
0
2 121 276
-792 917
942 038
0
-792 917
2 826 113
-6 667
327 382
208 333
-6 667
982 147
-768
235 428
-768
706 284
-94 417
1 231 439
-94 417
3 694 316
-17 730 960
17 726 045
-17 730 960
53 178 135
2 795 000
May
June
2012
2012
Total Rev
Rev Projection
Rev Projection
R
R
3 730 833
1 436 980
0
0
0
0
83 333
0
1 250
2 750
417
83 333
3 730 833
1 436 980
0
0
0
0
83 333
0
1 250
2 750
417
83 333
6 667
101
3 333
125 000
41 667
37 500
54 167
16 667
125 000
6 667
101
3 333
125 000
41 667
37 500
54 167
16 667
125 000
208 333
208 333
250 000
8 333
375 000
62 500
83 333
54
250 000
8 333
375 000
62 500
83 333
54
6 736 552
6 736 552
Total
Total
Capex
Rev
Opex
R
Capex
Rev
R
R
-50 000 57,394, 449
-200 000
0
10 981 986
0
-45 159 538
35 309 586
-180 638 150
0
11 481 700
0
7 760 000
-800 600
19 506 050
0
-4 310 939
25 996 985
-17 243 755
0
-187 500
10 721 250
-750 000
0
0
8 485 105
0
0
-2 378 750
11 304 450
0
-9 515 000
625 000
-20 000
3 928 587
2 500 000
-80 000
-2 303
2 825 136
5 700 000
-9 210
-283 250
14 777 263
-1 133 000
-53 192 879
155 318 098
-212 771 515
8 385 000
31 040 000
Total Rev
Total Rev
11 192 500
4 310 939
0
0
0
0
250 000
0
3 750
8 250
1 251
250 000
44 770 000
17 243 755
122 245 000
7 551 000
1 500 000
800 000
1 000 000
2 202 400
15 000
33 000
8 000
1 000 000
-3 202 400
20 000
303
10 000
375 000
125 000
112 500
162 500
50 000
375 000
80 000
1 210
40 000
1 500 000
500 000
450 000
650 000
200 000
1 500 000
625 000
2 500 000
750 000
25 000
1 125 000
187 500
250 000
163
3 000 000
100 000
4 500 000
750 000
1 000 000
650
20 209 655
215 140 015
Monthly Revenue Indicators
Jul 11
Percentage of debtors amount
paid within terms for each tariff1
Water
Property Rates
Sewerage / Sanitation
Refuse Removal
Interest
Total - (Average %)
Percentage of tariff to total
debtors outstanding for longer
than 90 days2
Nov 11
Variance
%
Variance
%
Dec 11
Jan 12
Variance
%
Feb 12
Variance
%
Mar 12
Variance
%
Apr 12
Variance
%
May 12
Variance
%
Variance
%
Jun 12
Variance
%
78%
80%
80%
78%
70%
70%
75%
80%
82%
85%
85%
75%
78%
80%
80%
78%
70%
70%
75%
80%
82%
85%
85%
75%
78%
80%
80%
78%
70%
70%
75%
80%
82%
85%
85%
75%
78%
80%
80%
78%
70%
70%
75%
80%
82%
85%
85%
75%
78%
80%
80%
78%
70%
70%
75%
80%
82%
85%
85%
78%
Variance
%
80%
Variance
%
80%
Variance
%
78%
Variance
%
70%
Variance
%
70%
Variance
%
75%
Variance
%
80%
Variance
%
82%
Variance
%
85%
Variance
%
85%
Variance
%
11%
11%
11%
11%
12%
12%
12%
11%
12%
13%
13%
12%
36%
38%
40%
40%
43%
46%
53%
48%
53%
56%
56%
57%
2%
2%
1%
1%
1%
1%
1%
1%
1%
1%
1%
1%
17%
18%
20%
20%
21%
22%
25%
23%
24%
26%
25%
27%
4%
5%
4%
4%
4%
4%
4%
4%
4%
4%
3%
2%
14%
15%
15%
15%
16%
17%
19%
17%
19%
20%
20%
20%
Variance
%
Variance
%
Variance
%
Variance
%
Variance
%
Variance
%
Variance
%
Variance
%
Variance
%
Variance
%
Variance
%
Variance
%
28%
31%
31%
33%
36%
38%
45%
39%
43%
46%
46%
47%
6%
6%
6%
6%
6%
6%
5%
4%
4%
4%
3%
3%
34%
37%
39%
36%
38%
41%
46%
43%
46%
50%
49%
47%
2%
0%
0%
1%
0%
1%
1%
0%
1%
0%
0%
1%
18%
19%
19%
19%
20%
22%
24%
22%
24%
25%
25%
25%
Debtors payment Rate (Payments Variance
received against monthly levies) %
Steelpoort
Ohrigstad
Burgersfort
Ga Mapodile
Mecklenburg
Praktiseer
Farms
Total - (Average %)
Oct 11
Variance
%
75%
75%
Government
Business
Households
Other
Total - (Average %)
Sep 11
Variance
%
Variance
%
Water
Property Rates
Sewerage / Sanitation
Refuse Removal
Other
Total - (Average %)
Percentage of group total
debtors outstanding for longer
than 90 days3
Aug 11
Variance
%
Variance
%
Variance
%
Variance
%
Variance
%
Variance
%
Variance
%
Variance
%
Variance
%
Variance
%
Variance
%
Variance
%
75%
80%
80%
80%
80%
80%
80%
80%
80%
80%
80%
80%
75%
80%
80%
80%
80%
80%
80%
80%
80%
80%
80%
80%
75%
80%
80%
80%
80%
80%
80%
80%
80%
80%
80%
80%
10%
12%
15%
15%
15%
15%
15%
15%
15%
20%
20%
20%
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
10%
15%
18%
20%
20%
20%
20%
20%
20%
20%
25%
25%
25%
80%
80%
80%
80%
80%
80%
80%
80%
80%
80%
80%
80%
48%
51%
52%
52%
52%
52%
52%
52%
52%
53%
53%
53%
MUNICIPAL MANAGER
SERVICE DELIVERY AND BUDGET IMPLEMENTATION 2012/13
Focus Areas Strategic
Objectives
IDT
KPA
HR
Objectives
Improve Organizational To capacitate GTM
cohesion and
Employees for optimal
effectiveness
servicce delivery by
2015
To reduce the salary
bill to a minimum
requirement by 2017
BSD
PMU
LED
Planning
LED
Employment
FVBM
Workstudy
SCM
Improve Organizational Ensure optimal
cohesion and
utilization of the
effectiveness
available workforce by
2013
Projects
Skills
development
program
Organizational
structure
To improve on planning 2013/14 IDP
and ensure forward
planning in all areas of
GTM by 2013/14
KPI
4 # of skill Development report
served in Council
Appointment on
position
To ensure availability of Infrastructure
bulk infrastructure for
Development
the attraction of new
plan
developemnts by 2017
Create an environment
that promotes the
development of te local
economy and facilitate
job creation
Baseline
SCM policy
Q1
4 skill Development report 2011/12 Annual Skill
served in Council
Development report
served in council
43% % achievement of Employment * Male v/s Female 7%
Equity plan target
*
50% progress
made
Submission of final 2013/14
Organisation Structure to
council for approval
100% compliance % Compliance to IDP
to IDP/Budget
compilation process
compilation
processes
50% % of External companies that
subcontracted 30% of the
procurement (capital projects)
to Local business
Q2
Q3
Q4
Enablers
2012/13 first skill
Development report
2012/13 second skill
Development report
2012/13 third skill
Development report
* MM
* Training
committtee
* Labour Union
* Male v/s Female 2% * Male v/s Female 3% * Male v/s Female 2%
Submission of final
2013/14 Organisation
Structure by 31 May with
IDP to council for
approval
5 # of projects (Capital) progress 4 - quarterly projects
reports submitted to council
progress repoprts
submitted to council
To ensure that
EPWP program 1000 jobs created # of jobs created through LED
householda do not rely
initiative
on grants and that are
self sustainable by
2017
To improve overall
To ensure legislative
financial management compliance to SCM
in the municipality by policy by 2013
developing and
implementing
appropriate financial
management policies,
procedures and
system
Annual Target
1- quarterly projects
progress repoprts
100% Compliance to IDP 10% Process plan
compilation process:
adopted by council
*10% adoption of
Process plan by
council;*10% Analysis
Phase report adopted by
council; *10% stakeholder
consultation to input on
analysis phase report and
draft IDp; *25% Strategies
phase completed;10%
Project phase completed;
10% Draft IDP adopted
by council; 10%
Integration phase done;
15% Final IDP approved
by council
1200
300
100% of External
100% of External
companies that
companies that
subcontracted 30% of the subcontracted 30% of
procurement (capital
the procurement
projects) to Local
(capital projects) to
business
Local business
HR
Submission of final
2013/14 Organisation
Structure by 31 May
with IDP to council for
approval
* OD
committee/corpo
rate services
* Technical
Services
progress repoprts
progress repoprts
progress repoprts
10% Analysis Phase
report adopted by
council;5%
stakeholder
consultation to input
on Analysis phase
done
25% Strategies phase
completed ; 10%
Project phase
completed; 10% Draft
IDP adopted by council
10% Integration phase * IDP unit
done; 5% stakeholder
consultation; 15% Final
IDP approved by
council
300
100% of External
companies that
subcontracted 30% of
the procurement
Local business
300
100% of External
companies that
the procurement
Local business
300 * LED manager
100% of External
companies that
the procurement
Local business
* SCM manager
* Adjudication
committee
* MM
MUNICIPAL MANAGER
R8,362,443
R-value spent on Departmental R10,981,986
budget
Budget plan
2010/11 AFS
submitted
timeously
submission of 2010/11
Annual Financial statements
submission of 2010/11
Annual Financial
statements
4 # of reports generated on
litigations( by and against the
municipality)
Four(4) qurterly litigation
reports ( by and against
the municipality)
01 litigation reports(
by and against the
municipality)
01 litigation reports( by
and against the
municipality)
01 litigation reports( by
and against the
municipality) submitted
to council
01 litigation reports( by * Legal unit
and against the
municipality) submitted
to council
100% functinality of
internal audit unit: * 20%
Generation of Audit
plan;*40%- two monthly
audit and one quarterly
performance audit are
conducted; *40% The unit
submit quarterly reports to
Audit committee
: * 20% Generation of
Audit plan;*10%- two
monthly audit and one
quarterly performance
audit are conducted;
*10% The unit submit
quarterly reports to
Audit committee
*10%- two monthly
audit and one
quarterly performance
audit are conducted;
*10% The unit submit
Audit committee
*10%- two monthly
audit and one quarterly
conducted; *10% The
unit submit quarterly
reports to Audit
committee
*10%- two monthly
* Internal
audit and one quarterly auditors
conducted; *10% The
unit submit quarterly
reports to Audit
committee
100% Implentation of AC 100% Implentation of
recommendations(4meeti AC recommendations
ngs)
from the 2011/2012
4th quarter meeting
100% Implentation of
AC recommendations
from 2012/2013 first
quarter meeting
AC recommendations
from 2012/2013
second quarter meeting
AC recommendations
from 2012/2013 second
quarter meeting
* Audit
committee
* Internal audit
* Other
Departments
Four(4) reports submitted 0NE(1) Report per
to Council
quarter submitted to
Council
100% progress in
addressing 2011/2012
AG findings: *20%
development of action
plan ; * 20% submission
of action to council for
approval; *60% Quarterly
update on progress in
AG findings
0NE(1) Report per
Council
0NE(1) Report per
Council
20% development of
action plan ; * 20%
submission of action
plan to council for
approval; *20%
Quarterly update on
progress in addressing
2010/2011 AG findings
0NE(1) Report per
Council
*20% Quarterly update
on progress in
AG findings
* Audit
committee
FVBM
Internal control
Expenditure
FVBM
KPI
Budget
GPP
Ensure budget
management by 2013
Baseline
Legal
Promote the culture of To promote stability in
participatory and good municipal area
governance
GPP
To ensure clean audit
by 2014
Projects
Audit
by 2014
Internal Audit
GPP
Objectives
Audit
by 2014
External Audit
GPP
Objectives
Audit
by 2014
External Audit
GPP
KPA
Audit
Promote the culture of To ensure clean audit
participatory and good by 2014
governance
External Audit
By-Laws
80% Functional
% functinality of internal audit
unit
0% % implementation of AC
recommendations
2 AC reports
submitted to
council
# of AC reports submitted to
Council
85% % progress in addressing
2011/12 AG findings
Annual Target
Q1
Q2
Q3
Q4
Enablers
R2,745,496
R5,490,993
R8,236,489
R10,981,986
* Budget
Manager
* Finance
* finance
* Internal Audit
* Other
Departments
MUNICIPAL MANAGER
Objectives
GPP
KPA
Risk
management
Objectives
Projects
Promote the culture of TO optimally manage Risk and fruad
participatory and good risk in order to achieve awareness
governance
the municipal vision
Baseline
Complement
% functionality of Risk
limited to Directors committee
60% % functionality of Risk
management unit
GPP
GPP
Public
Participation
Promote the culture of To ensure sufficient
participatory and good political championship
governance
and accountability
Public
participation and
IGR
IDT
TO optimally manage Risk and fruad
risk in order to achieve awareness
governance
PMS
Institutional
development and
transformation
Performance
management
program
To ensure optimal
utilization of workforce
Annual Target
Q1
Q2
Q3
Q4
Enablers
100% functionality of Risk
committee:*20%-Approval
of strategic and
operational risk register;*
80% ability to generate
quarterly reports to AC &
MM
*20%-Approval of
strategic and
operational risk
register;* 20% ability
to generate quarterly
reports to AC & MM
* 20% ability to
generate quarterly
reports to AC & MM
* 20% ability to
generate quarterly
reports to AC & MM
* 20% ability to
generate quarterly
reports to AC & MM
* Risk officer
* Risk committee
* Departments
50% progress made:
The draft policy &
strategy served in
Executive committee
100% progress made:
policy & strategy
Approved served in
council
*20 development of
operational and
strategic Risk
register;*5%
Arranging quarterly
Risk committee
meetings; *10%
Monthly risk mitigation
and update of risk
register
*5% Arranging
quarterly Risk
committee meetings;
*10 Conducting Risk
awareness(MidDecember); *10%
and update of risk
register
*5% Arranging
quarterly Risk
committee meetings;
*10% Monthly risk
mitigation and update
of risk register
*5% Arranging
quarterly Risk
committee meetings;
*10 Conducting Risk
awareness( Mid -June;
*10% Monthly risk
mitigation and update
of risk register
* Risk
management
unit
* Risk
Management
committee
* Departments
* 20% Establishment
of Hotline
number;*20%
Workshop the strategy
to counillors, staff ;*
10% referring matters
to relevent department
within 3 days after
received
*10% Workshop the
strategy to
communities;* 10%
referring matters to
relevent department
within 3 days after
received
* 10% referring
matters to relevent
department within 3
days after received
* 10% referring
matters to relevent
department within 3
days after received
* Risk
management
unit
* Risk , Audit
committee
* Departments
1 - of Exco - outreach
progress reports
* Public
participation
0% % progress in the development 100% progress in the
of risk management policy &
development of risk
strategy.
management policy &
strategy.
governance
Risk
management
KPI
100% functionality of Risk
management unit:*20
development of
operational and strategic
Risk register;*20%
Arranging quarterly Risk
committee meetings; *20
Conducting Risk
awareness; *40%
and update of risk register
0% % on the implementation of the 100% Implementation of
Fraud Prevention policy and
the Fraud Prevention
strategy.
Policy and Plan:* 20%
Establishment of Hotline
number;*40% Workshop
the strategy to counillors,
staff and communities;*
40% referring matters to
relevent department
within 3 days after
received
4 # of Exco - outreach progress
reports submitted to council
2010/2011
performance
Agreements
signed
# of section 57 managers who
signed performance
Agreements
* Risk
management
unit
* Risk
Management
committee
* Departments
4 - of Exco - outreach
progress reports
1 - of Exco - outreach 1 - of Exco - outreach 1 - of Exco - outreach
progress reports
progress reports
progress reports
6 - section 57 managers
signed performance
Agreements (MM;
directors: community
service, Technical, ELD,
CFO & Corporate)
6 - section 57
managers signed
performance
Agreements (MM;
directors: community
service, Technical,
ELD, CFO &
Corporate)
* PMS
* Directors
KPI
Annual Target
Q1
Performance
management
program
2009/10
individual
Reviews
# of individual performance
reviews conducted (section 57
managers)
four individual reviews
conducted: Two formal
and two Informal
2010/2011 4th quarter First quarter informal
formal reviews(end of reviews
the year review)
To ensure optimal
Performance
management
program
Two performance # of Individual performance
review reports
reviews reports submitted to
served in Council council
Two individual
performance review
reports submitted to
council
IDT
PMS
Institutional
development and
transformation
To ensure optimal
Performance
management
program
six performance
# of municipal performance
reports generated reports submitted to council
five performance reports 2011/2012 4th quarter 1st quarter report for
submitted to council:*
report and Annual
2012/13
2011/2012 4th quarter
performance report
report(Annual
performance report); *first
report(2012/2013;*Midyear report & 2012/2013
by 24 January 2013; *
third quarter report
IDT
PMS
Institutional
development and
transformation
To ensure optimal
Performance
management
program
2010/2011 in
place
GPP
IGR
Promote the culture of To ensure that GTM is
participatory and good portrayed in ways that
governance
restores trust in local
government
Council structure
meetings
GPP
KPA
IGR
governance
government
Council structure
meetings
IGR
governance
government
Council structure
meetings
IDT
Baseline
GPP
MUNICIPAL MANAGER
Objectives
Objectives
PMS
Institutional
development and
transformation
To ensure optimal
Institutional
development and
transformation
Projects
Q2
100% % management reviews
resolutions implemented
4 # of ExCo - makgotla held
100% of management
reviews resolutions
implemented
4 ExCo- makgotla: one
per Quarter
Q4
Enablers
Mid-year Formal
Reviews
Third Quarter Informal
reviews
* PMS
* Directors
one performamce
review report
Second performance
* PMS unit
review report submitted * Secretarait
to council
% progress in the development 100% progress in the
of 2012/13 SDBIP
development of
2012/2013 SDBIP: 70%
adoption of draft
SDBIP;20% signing of
2012/2013 SDBIP by the
Mayor; 10% submission
to DLGH
4 # of management reviews held 4 management reviews :
one per quarter
Q3
1
100% of
management reviews
resolutions
implemented(2011/12
4th management
reviews)
1
1
100% of management
reviews resolutions
implemented( 1st
quarter management
review resolutions)
1
*2012/2013 Mid-year
report
3rd quarter report for
2012/13
* PMS unit
* M/Departments
70% adoption of draft
SDBIP
20% signing of
2012/2013 SDBIP by
the Mayor; 10%
submission to DLGH
* IDP
* PMS
* M/Departments
1
100% of management
reviews resolutions
implemented( 2nd
quarter management
review resolutions)
1
1 * PMS
* Directors
100% of management * Resolution
reviews resolutions
secretariat
implemented(3rd
* M/department
quarter management
review resolutions)
1 * PMS
* Directors
MUNICIPAL MANAGER
Q1
Q2
Q3
Q4
Enablers
GPP
Annual Target
IGR
governance
government
Performance
management
program
100% % Exco - lekgotla resolutions
implemented
100% of Exco - lekgotla
100% of Exco lekgotla resolutions
implemented( 2011/12
4th quarter Exco lekgotla resolutions)
implemented( 1st
quarter Exco - lekgotla
resolutions)
implemented( 2nd
quarter Exco - lekgotla
resolutions)
implemented (3rd
quarter Exco- lekgotla
resolutions)
* Resolution
secretariat
* M/department
GPP
KPI
IGR
governance
government
Intergovernment
relation
100% % of council resolutions
implemented
100% of council
100% of council
resolutions
implemented
100% of council
resolutions
implemented
100% of council
resolutions
implemented
100% of council
resolutions
implemented
* M/Secretariat
SR
Baseline
TOWN
PLANNING
Create a conducive
To ensure integrated
environment for human human settlements
settlement and
business
Land use
management
4 - land development
council
1 - land development 1 - land development 1 - land development
council
council
council
1 - land development
council
* ELD
GPP
Projects
Communication
Promote the culture of To ensure council is
Communication
participatory and good portrayed in ways that strategy
governance
government
4 # of local communicators' forum 4 : Quarterly meetings
meetings held
GPP
Objectives
Communication
Communication
governance
government
0 # of Talk shows ( public
dialogue) held
4: Quarterly engagements
GPP
Objectives
Communication
Communication
governance
government
0 # of issue based engagement
coordinated(Talkshows)
As and when they arise
GPP
KPA
Communication
participatory and good portrayed in the ways
governance
that restores trust in
local government
website update
0 # of land development reports
40% update of
website
% update of Website
100% of MFMA section
75 items that council has
approved should be on
website not later than five
days after they have been
tabled on council.
1 Meeting
1 Meeting
1
1
as and when they
arise
100% of MFMA
section 75 items that
council has approved
should be on website
not later than five
days after they have
been tabled on
council.
1 Meeting
1 Meeting * manager
Communication
11
* manager
Communication
as and when they as and when they arise as and when they arise * manager
arise
Communication
* M/departments
100% of MFMA
section 75 items that
council has approved
should be on website
not later than five days
after they have been
tabled on council.
75 items that council
has approved should
be on website not later
than five days after
they have been tabled
on council.
75 items that council
has approved should
be on website not later
than five days after
they have been tabled
on council.
* IT
* Communication
secretariat
* M/ departments
MUNICIPAL MANAGER
Baseline
GPP
Projects
Communication
Communication Language Policy
adopted by
governance
council
government
GPP
Objectives
Communication
Communication
governance
government
GPP
Objectives
Communication
Communication
governance
government
GPP
KPA
Communication
Communication
governance
government
KPI
Annual Target
Q1
Q2
Q3
Q4
% compliance to the
implementation of Language
policy
100% compliance to the
implementation of
Language policy:*20%
usage of indigenous
langauges in council
procedings;* 20% Official
notices being issued in
indigeous languages;
*40% Articles in the
official newsletter being
written in indigenous
languages;* 20% agenda
being serve in municipal
languages
100% compliance to
the implementation of
usage of indigenous
procedings;* 20%
Official notices being
issued in indigeous
languages; *40%
Articles in the official
newsletter being
languages;* 20%
agenda being serve in
municipal languages
100% compliance to
usage of indigenous
procedings;* 20%
issued in indigeous
languages; *40%
newsletter being
languages;* 20%
municipal languages
100% compliance to
usage of indigenous
procedings;* 20%
issued in indigeous
languages; *40%
newsletter being written
in indigenous
languages;* 20%
municipal languages
100% compliance to
* Manager
the implementation of communication
usage of indigenous
procedings;* 20%
issued in indigeous
languages; *40%
newsletter being written
in indigenous
languages;* 20%
municipal languages
1
1
0% # of media statements released 4: Quarterly media
releases
3 days Turnaround time in response to 3 days turnaround time in 3 days(As and when
media queries
response to media
queries arise)
queries
2 # of newsletter produced
Four newsletter per
annuam
1
11
Enablers
* manager
Communication
* M/departments
3days(As and when
queries arise)
3 days (As and when
queries arise)
3 days( As and when
queries arise)
* manager
Communication
* M/departments
2
3
4
* manager
Communication
* M/departments
Enabler's activities Budget Evidence
* Development of
WSP(training
committee)
* Sign off of WSP(MM
& Labour Union)
R0.00
Council
resolutions
Advertisement and
effect appointments
R0.00
Employees
profile
* completed OD
processes
R0.00
Council
resolution
* Generate the project
progress report and
submission for Mayor
signature
R0
Council
resolutions
* Develop IDP process R500 000
plan
* Ensure
implementation of IDP
processes plan
* co-ordinate, support
and report on LED
initiative projects
council
resolutions on
Process plan;
Status qou
analysis report;
Strategic phase
report; draft
and final IDP
R0.00
* Ensure compliance to R0.00
the SCM policy
SCM report
* ensure spending are
align to the budget
R10,981,9 Expenditure
86
report
* Generate the AFS
R0
Ackowledgeme
nt letter from
A.G.
* provide report on
litigation
R0
Council
resolutions
* Development of audit R55 000
plan
* Generate quarterly
reports on the audit
plan
* submitting reports to
AC
* Audit
plan;*Monthly
audit and
Quarterly
performance
audit reports
* Meeting and generate R0
resolutions(AC)
* follow up the
implementation of AC
recommendation( IA)
* Provide progress
made of AC
recommendations(
Other Departments)
Register of AC
recommendatio
ns and
implementation
report
* Generate reports to
Council
Council
resolutions
R150 000
* Generate A.G. finding R2 000
action plan( finance)
000
* audit the
implemetation of the
action plan(IA)
* implement the action
plan
AG findings
Action plan;
Council
resolution;
Quarterly
update
repports
* Ensure that risk
R0
committee meet as per
programme(Risk
officer)
* Organise Risk
workshop(risk officer)
* Participate in
generating risk
register(Departments)
* Assess whether
identified risks are
addressed
Quarterly risk
committee
repport
Ensure compliance
with MFMA Act.
Promote good
gorvenance practice.
R0
Draft policy;
strategy and
council
resolution
To ensure that all
identified risks are
attended to, by
implementing the
matigating measures.
R0.00
*Risk
register;*Quart
erly Risk report
to Risk
committee;*
Risk campaign
reports
Prevention, Detection R50
and Reduction of
corrupt activities within
the Municipality.
* Organise EXCO R0
outreach
* generation of the
Exco - outreach report
* Generate the
Agreements( PMS)
* Signing of the Pas(
Directors)
R0
* Workshop
report;
*Register of
issues received
indicating date
received and
date submitted
to relevent
department
with a column
for receiver to
cknowledge.
Council
resolution
Copy of signed
performance
agreements
and council
resolution
* Arrange the reviews
* Establishment of
panels
* Prepare and
participate in the
reviews
R10 000
* Performance
review reports
*Generation reports
* convene the council
R0.00
Council
resolutions
* package the
reports(PMS)
* Update their
performance
R150,000
Council
resolutions
* Avail Measurement
chapter to PMS( IDP)
* Generate the
SDIBP(PMS)
* Input on the draft
SDBIP
R30 000
Council
resolutions &
acknowledgem
ent of DLGH
* Arrange for the
R10 000
management
reviews(PMS)
* Prepare and present
their departmental
reports(directors)
Generate resolutions R0
during Management
reviews( resolution
secretariat)
* Implement and submit
progress to
secretariat(M/departme
nts)
* Arrange Exco R50 000
makgotla(PMS)
* Prepare and present
their departmental
reports (directors)
Atendent
Register
Register of
management
review
resolution and
implementation
report
Atendent
Register
Generate resolutions R0
during Exco -makgotla
( Resolution
secretariat)
* Implement and submit
progress to
secretariat(M/departme
nts)
Register of
ExCo- lekgotla
resolution and
implementation
report
* Generate Council
R0
resolutions and submit
to the Speaker for
signature
council
Resolution/
Acknowledgem
ent letter from
the speaker
* Generate land
development report
and submission for
Mayor 'signature
R0
Council
resolutions
* Attend local
communicators forum
and give feedback
R0
Minutes &
Reports
* Arrange and attend
talk shows
R100 000
Reports
* Address issues raised R0
or request information
from other
departments(M/C)
* Provide required
information for the
talkshow(
M/Departments)
Reports
* Submission of
R0
documents to SETA(IT)
* Edit information
submiited to SETA(
Communication
secretariat)
* Submit information to
be loaded on website(
M/departments)
Register of
items submitted
to SETA for
website and
council
resolutions
* monitor and advise in R0
the language policy
and report
Articles written
in indigenous
languages
* Prepare quarterly
R 80,000
media statement(C/M)
* Provide information to
communication
manager to prepare
statements(M/D)
Copies of
media
statements
released
* Prepare and respond R 0
to quiries(C/M)
communication
manager to respond to
quiries(M/D)
Copies of
questionaires
and responses
generated.(Sig
ned off by MM)
* Prepare and
R350,000
releasenewsletter
(C/M)
communication
manager to prepare the
newsletter (M/D)
Research
information and
copies of
newsletters
Focus Areas
Objectives
FVBM
Budget
To ensure budget Budget Plan
management by
2013
FVBM
Revenue
To Improve
Revenue
revenue base with Enhencement
25% by 2017
FVBM
Revenue
To Improve
Revenue
25% by 2017
Recovery of 86% % of billed revenue
municipal services collected
revenue billed
FVBM
Revenue
To Improve
Revenue
25% by 2017
0% decrease in
debtors since
2009/10
FVBM
Expenditure
To ensure clean
audit by 2014
Internal control
0% decrease in
debtors since
2009/10
FVBM
Expenditure
To ensure clean
audit by 2014
Internal control
30 days
FVBM
Expenditure
To ensure clean
audit by 2014
Internal control
100% % reconciliation of all
payment transactions
100% reconciliation of
all payment
transactions :
compliance for
reconciliation of all
FVBM
Expenditure
To ensure clean
audit by 2014
Internal control
100% % compliance to grant
expenditure conditions
FVBM
Expenditure
To ensure clean
audit by 2014
Internal control
R - value of cash
availability to monthly
expenditure commitments
FVBM
FINANCE
KPA
Projects
Baseline
KPI
Expenditure
To ensure clean
audit by 2014
Internal control
100% % complinace to statutory
obligations
100% % compliance with budget
process timelines
65% % of revenue campaigns
resolutions implementated
Annual Target
Q1
Q2
Q3
100% compliance with
budget process
timelines and
implementation
*10% establishment of
budget committees and
teams;*10%
Establishment of
forums for
consultation;* 5%
Establish schedule for
next cycle;*5%
Advertise the budget
process and schedule
not later than
31/08/202
implemetation
100% of revenue
campaigns
resolutions
implementated
100% of revenue
campaigns
resolutions
implementated
* 10% consult with
stakeholders on any
proposed new or
changes to external
mechanism for service
delivery;10% * Refine
funding policies
including tariff
structure; * 10%
prepare drafts for IDP
and Capital and
opeational plans with
cost and rvenue
estimate
100% of revenue
campaigns
resolutions
implementated
% reduction of outstanding 15% reduction of
service debts that are
outstanding service
above 60 days
debts that are above
60 days
% reduction of government 15% reduction of
debts
government debts
% compliance to 30 days
payment time
Enablers
Enabler's
activities
*5% Assess Mid-year
*10% Final budget
review for 2012/13
with IDP adopted by
budget; * 5% Review
council 31 May 2013
tariffs ;* 5% Finalize
detailed draft budget in
unform format;* 5%
submit copy of budget to
National and Provincail
government for review;*
5% integrate and align
budget to IDP;*5%
Finalize budget for next
three years
* Budget
Manager
* Prepare budget
process and
timelines
R0
100% of revenue
100% of revenue
campaigns resolutions campaigns
implementated
resolutions
implementated
* Revenue
Manager
* Public
participation
* Prepare revenue
presentation(
revenue manager)
* publicize the
campaigns ( PP)
R0
75% of billed
revenue collected
* Revenue
Clerks
* update revenue
records
R0
15% reduction of
outstanding service
debts that are above
60 days
20% reduction of
government debts
* revenue
manager
* implementation of R0
revenue
enhencement
strategy
* implementation of R0
revenue
enhencement
strategy
* monitor the
R0
compliance to 30
dya s payment
circle
75% of billed revenue 75% of billed revenue 75% of billed revenue 75% of billed revenue
collected
collected
collected
collected
15% reduction of
outstanding service
debts that are above 60
days
20% reduction of
government debts
Q4
* revenue
manager
100% compliance to
100% compliance to 30 100% compliance to 30 100% compliance to 30 100% compliance to * Expenditure
30 days payment time days payment time
days payment time
days payment time
30 days payment time manager
all payment
transactions :
compliance for
all payment
transactions :
compliance for
all payment transactions
: compliance for
Budget
100% reconciliation * Expenditure
of all payment
manager
transactions :
compliance for
Monitor the
reconcilation of
payment
100% compliance to
*10% Monthly reporting *10% Monthly reporting *10% Monthly reporting
grant expenditure
for all grants
for all grants
for all grants
conditions : 30%
Business plan
developed for both
MSIG and FMG; 40%
Monthly reporting for
all grants
* 30% Business plan * Expenditure
developed for both
manager
MSIG and FMG;*
10% Monthly
reporting for all grants
* Monitor and report R0
Expenditure on
grants
R212,712,547
R53,178,136
R53,178,136
R53,178,136
R53,178,136
* Monitor and report R212,712,547
on Expenditure
100% complinace to
statutory
obligations:*60%
Personnel benefits
(PAYE, medical aid,
pesnsion,
UIF,WCF,SDL,
Unions, Bargaining
council); *20%
SALGA;*20%Political
parties
100% complinace to
statutory
obligations:*60%
Personnel benefits
(PAYE, medical aid,
pesnsion,
UIF,WCF,SDL, Unions,
Bargaining council);
*20%
SALGA;*20%Political
parties
100% complinace to
statutory
obligations:*60%
Personnel benefits
(PAYE, medical aid,
pesnsion,
*20%
SALGA;*20%Political
parties
100% complinace to
statutory
obligations:*60%
Personnel benefits
(PAYE, medical aid,
pesnsion,
*20%
SALGA;*20%Political
parties
100% complinace to * Expenditure
statutory
manager
obligations:*60%
Personnel benefits
(PAYE, medical aid,
pesnsion,
UIF,WCF,SDL,
Unions, Bargaining
council); *20%
SALGA;*20%Political
parties
* Expenditure
manager
* manage and
report statutory
compliance
R0
R0
Focus Areas
Objectives
FVBM
Expenditure
To ensure clean
audit by 2014
Internal control
FVBM
FINANCE
KPA
Projects
Expenditure
To ensure clean
audit by 2014
Internal control
Baseline
KPI
FVBM
Asset
To ensure
Intergrated Asset
effective, efficient management
and responsive
infrastructure
network and
assets by 2017
FVBM
R28,378,533
IT
To improve IT
system and
network by 2013
IT plan
Annual Target
Q1
Q2
Q3
Q4
Enablers
Enabler's
activities
100% % of ward committee
members who received
incentives on time
100% of ward
committee members
who received
incentives on time
100% of ward
committee members
who received
incentives on time(
agreed upon pay day)
100% of ward
committee members
who received
incentives on time(
100% of ward
committee members
who received incentives
on time( agreed upon
pay day)
100% of ward
committee members
who received
incentives on time(
* Expenditure
manager
* Community
service
* monitor and
R3,720,000
ensure payment of
ward committee
monthly(expenditure
manager)
* Submit list of ward
committees who
has submitted
reports( community
services)
100% % accuracy in payroll
management
100% accuracy in
payroll management :
*20% correctness of
personnel figure;* 55%
correct salary rates
calculation; *20%
correct statutory
deductions
calculations; *15%
validation of new
deduction instructions
100% accuracy in
*20% correctness of
calculation; *20%
correct statutory
deductions
calculations; *15%
validation of new
100% accuracy in
*20% correctness of
calculation; *20%
correct statutory
deductions
calculations; *15%
validation of new
100% accuracy in
*20% correctness of
calculation; *20%
correct statutory
deductions calculations;
*15% validation of new
100% accuracy in
* Expenditure
payroll management : manager
*20% correctness of
personnel figure;*
55% correct salary
rates calculation;
*20% correct
statutory deductions
calculations; *15%
validation of new
R35,309,586
R8,827,396
R17,654,792
R26,482,188
R35,309,586
R-value spent on
Departmental budget
100% % completeness and
accuracy of the asset
register
IT steering
committee
established
% Functionality of IT
steering committeee
GPP
24hours Turnaround time on
response to desktop
support requests
IGR
To ensure council Website update
is portrayed in
ways that restores
trust in local
government
100% completeness
10% update of asset
and accuracy of the
register
asset register: 20% correction of AG
queries on assets;
25% - monthly asset
verification;10%
update of asset
register ; 5% provision
for depreciation and
armotisation; 5%
finalise water assets
transfer; 25% annual
asset count; 10%
property valuation.
100% Functionality of
IT steering
committeee:* 50%
Production of quarterly
report: *50% ability to
address IT challenges
within its turnaround
time
IT steering
committeee:* 50%
time
% of desktop support 100% of desktop
requests responded to support requests
within 24 hrs
addressed within 24
hrs
done as per pieces Turnaround time in loading Turnaround time in
of legislations
information on website
loading information on
website: 7 days for
pesting HR policies
after adopted by
Council
* 7 days for
Advertisement after
signed off by MM
Turnaround time in
website: 7 days for
pasting HR policies
after adopted by
Council
* 7 days for
Advertisement after
signed off by MM
* monitor the
accuracy of payroll
* ensure spending
are align to the
budget
20% - correction of AG 20% - correction of AG 10% update of asset * Asset manager * Monitor and
queries on assets;10% queries on assets; 25% - register ; 5% provision
update asset
update of asset register monthly asset
for depreciation and
register/asset
verification;10% update armotisation; 5%
of asset register
finalise water assets
transfer; 25% annual
asset count; 10%
property valuation.
IT steering
committeee:* 50%
time
100% Functionality of IT
steering committeee:*
50% Production of
quarterly report: *50%
ability to address IT
challenges within its
turnaround time
100% of desktop
support requests
addressed within 24
hrs
100% of desktop
100% of desktop
support requests
support requests
addressed within 24 hrs addressed within 24
hrs
Turnaround time in
website: 7 days for
pasting HR policies
after adopted by
Council
* 7 days for
Advertisement after
signed off by MM
Turnaround time in
website: 7 days for
pasting HR policies after
adopted by Council
* 7 days for
Advertisement after
signed off by MM
* Budget
Manager
100% Functionality of * IT manager
IT steering
committeee:* 50%
Production of
quarterly report: *50%
ability to address IT
challenges within its
turnaround time
* IT manager
Turnaround time in
* secretariat
loading information
* IT manager
on website: 7 days for
pasting HR policies
after adopted by
Council
* 7 days for
Advertisement after
signed off by MM
Budget
R0
R35,309,586
R200 000
* Ensure the
R0
functionality of the
steering committee
aand report
quarterly
* Ensure that IT
matters are
attended to within
24hrs
* council resolutions R0
* Submit document
to SITA for pesting
at website
R800,000
FINANCE
FVBM
KPA
Focus Areas
Objectives
Projects
SCM
Ensure legislative SCM policy
compliance to
SCM policy by
2013
Baseline
KPI
Annual Target
30 days - OPEX,
90 day - CAPEX
% of procurement support 100% of procurement 100% of procurement 100% of procurement 100% of procurement
to departments done within support to
support to departments support to departments support to departments
30 days
departments done
done within 30 days
done within 30 days
done within 30 days
within 30 days
% of Capital projects
100% of Capital
tenders that complied to 90 projects tenders that
days timeframe.
complied to 90 days
timeframe.
Q3
Q4
Enablers
100% of procurement * SCM manager
support to
departments done
within 30 days
100% of Capital
projects tenders that
complied to 90 days
timeframe.
100% of Capital
projects tenders that
complied to 90 days
timeframe.
100% of Capital projects 100% of Capital
tenders that complied to projects tenders that
90 days timeframe.
complied to 90 days
timeframe.
OPEX 30%(R15,95m)
OPEX 30%(R31,9m)
OPEX 30%R47,85m)
Enabler's
activities
Budget
* monitor
R0
procurement by
departments in line
with turnarround
time
* PMU manager * make request for
advertisement
FVBM
SCM
compliance to
SCM policy by
2013
67%
CAPEX 30%(15.16M) CAPEX 30%(R3,79m) CAPEX 30%(R7,58m) CAPEX
30%(R11,37mm)
CAPEX 30%(15.16M) * SCM manager * Ensure
R0
* Budget
compliance to the
manager
policy(budget
manager)
* Ensure that the
spending is in line
with the policy(SCM)
FVBM
SCM
compliance to
SCM policy by
2013
75% % of tenders (capital
projects) that subcontracted
30% of the procurement to
Local business
25% of tenders (capital
projects given in the
quarter ) that
the procurement to
Local business
25% of tenders
* SCM manager * ensure adherence R0
(capital projects given
to the policy
in the quarter ) that
the procurement to
Local business
GPP
R0
IGR
To ensure that
Intergovernment
GTM is portrayed relation
in ways that
restores trust in
local government
100% % of management meeting 100% of management 100% of management 100% of management 100% of management
meeting resolutions
meeting resolutions
meeting resolutions
meeting resolutions
implemented
implemented
implemented
implemented
100% of
* Secretariat
management meeting
resolutions
implemented
* generate
resolutions during
management
meeting and
circulate to
departments
R0
GPP
OPEX 30%(R63.8M) * SCM manager * Ensure
* Budget
compliance to the
manager
policy(budget
manager)
* Ensure that the
spending is in line
with the policy
R0
IGR
To ensure that
Intergovernment
in ways that
restores trust in
local government
100% % of ExCo- makgotla
100% of ExComakgotla resolutions
implemented
implemented
implemented
implemented
100% of ExCo* Resolution
makgotla resolutions committee
implemented
* generate
resolutions during
ExCo - makgotla
and circulate to
departments for
implementation
R0
GPP
OPEX 30%(R63.8M)
Q2
IGR
To ensure that
Intergovernment
in ways that
restores trust in
local government
100% % of council resolutions
implemented
100% of council
resolutions
implemented
100% of council
resolutions
implemented
100% of council
resolutions
implemented
100% of council
100% of council
resolutions implemented resolutions
implemented
GPP
30% % of municipal budget
allocated to SMMEs
Q1
Audit
To ensure clean
Audit by 2014
Internal Audit
Risk and Fruad
awareness
50% % of internal audit unit
findings addressed
0 % implementation of Risk
committee
recommendations
quarter ) that
the procurement to
Local business
quarter ) that
the procurement to
Local business
quarter ) that
the procurement to
Local business
100% of internal audit 100% of internal audit 100% of internal audit 100% of internal audit
unit findings addressed unit findings addressed unit findings addressed unit findings addressed
100% implementation 100% implementation
of Risk committee
of Risk committee
recommendations
recommendations
100% implementation
of Risk committee
recommendations
* Secretariat
* Speaker
100% of internal audit *internal audit
unit findings
unit
addressed
100% implementation of 100% implementation * Risk
Risk committee
of Risk committee
management
recommendations
recommendations
committee
* generate
R0
resolutions during
council sitting and
circulate to
departments for
implementation(Sec
retariat)
* Signing of
resolutions(
Speaker)
* audit and
R0
release findings to
departments to
effect correction
* generate
R0.00
findings and seek
information from
the Corporate
services
department
FINANCE
KPA
Focus Areas
Objectives
Projects
External Audit
Baseline
KPI
Annual Target
80% % progress in implementing 100% progress in
2011/12 AG respond Action implementing 2011/12
plan
AG respond Action
plan
Q1
Q2
Q3
Q4
Enablers
50% progress in
100%% progress in
* Finance
implementing 2011/12 implementing
AG respond Action plan 2011/12 AG respond
Action plan
Enabler's
activities
Budget
* Issue out action R0
plan
Evidence
*Budget process
documents; * List
committees and
forums established;
* Copy for advert
made; * copy of
refined tariff policy;*
Acknowledgement
letter from national
and provincial
treasury and Council
resolution
Register of revenue
campaigns
resolutions and
implementation
report
Revenue report
Revenue report
Revenue report
Payment voucher
Expenditure report
Monthly grants
expenditurre reports
Expenditure report
Expenditure report
Evidence
Payroll print out
Salaries expeniture
report
Expenditure report
Fixed asset register
IT quarterly reports
Register of quiries
made(reflecting time
when query was
made, time
addressed with
signature of the
requestar
Council resolutions;
Register of
doucment submitted
to IT with signature
IT manager for
acknowledgement
Evidence
Procurement report
Tender report
reflecting: Name &
number of project
awarded per
quarter;* date of
advertisement;*
award date of the
tender.
Monthly SCM
reports
Monthly SCM
reports
Monthly SCM
reports
Register of
management
meeting resolution
Register of ExColekgotla resolutions
and their
implemetation report
Register of council
resolutions and their
internal audit
findings and their
responds
Risk management
committee
recommendation
and respond report
Evidence
2011/2012 AG
action plan and
ECONOMIC AND LAND DEVELOPMENT
Focus Areas
Objectives
LED
LED
To grow the
economy with 6%
2017 by
LED
LED
To ensure that
Skill program
skills needed in the
mine is obtained
from the local
communities by
2017
LED
LED
To ensure that
EPWP program
households do not
rely on grants and
that are self
sustainable by
2017
LED
LED
To grow the
economy with 6%
2017 by
LED strategy
LED
LED
To grow the
economy with 6%
2017 by
LED strategy
FVBM
Advertsment
To Improve revenue Revenue
enhancement
base with 25% by
2017
R37,562 R-value of revenue
generated through
advertising signs
FVBM
Hawkers
To Improve revenue Revenue
enhancement
base with 25% by
2017
GPP
IGR
GPP
KPA
Projects
SERVICE DELIVERY AND BUDGET IMPLEMENTATION PLAN 2012/13
Baseline KPI
Annual Target
Q1
Q2
IGR
To ensure that
GTM is portrayed
in ways that
restores trust in
local government
To ensure that
GTM is portrayed
in ways that
restores trust in
local government
LED strategy
Intergovernment
relation
Intergovernment
relation
Q3
Q4
Enablers
Enabler's activities Budget
Evidence
*5 Municipality; *7
Mining; *2 Sector
Department; *1
Retailers
*5 Municipality; *6
Mining; *1 Sector
Department; *1
Retailers
* LED manager
* collect information
from LIBSA
SMME linkage support
report
*20% Establishment *10% quarterly
of engagement team progress report to
with FET and Mines; quarterly to council
* 20% Development
of terms of
reference of the task
team;
* 20% Development
of schedule of
engagement;
*10% quarterly
progress report to
quarterly to council
*10% quarterly
progress report to
*10% quarterly
progress report to
* LED manager
* ensure that the KPI is R0
implemented
* TOR; * List of
members of
engagement team;
Schedule of
engagement;
engagement report ; *
council resolution
2-Kgoboko
2-Itsosheng
Poultry;Makgapheng Madifahlane Aged
Farming Co-op.
Project;Gabazi Mixed
Farming
2-The Shelter
Gardening;Moketeng
Poultry
2-Lephothane Poultry * LED manager
Project
* Budget
* identification of
R1000,000
poverty alleviation
projects(LEDM)
* Provide Budget for the
programme
Report on support
provided
* 500 In-house
projects; *500 Mines;
*300 Business; * 300
social institutions;
*400 Farming &
tourism
* 500 In-house
social institutions; *400
Farming & tourism
* 500 In-house
* LED manager
*400 Farming &
tourism
* collect statistics
R0
reports on job creation
from various institutions.
100% of LED forum 100% of LED forum
resolutions
resolutions
implemented
implemented
100% of LED forum
resolutions
implemented
100% of LED forum
resolutions
implemented
* LED manager
* Ensure that LED
forum meet, take
resolutions and
implement those
resolution
R5000
Register of LED
resolutions and it
implementation report
R100 000
R25 000
R25 000
R25 000
R25 000
* LED manager
* Generate register for
advertise signs placed
in the municipality and
ensure all are billed
R100 000
advertising signs revenue
report
R0 R-value of revenue
generated through
issueing Hawkers
licence
100% % of management
meeting resolutions
implemented
R33 000
R8,250
R8,250
R8,250
R8,250
* LED manager
* Generate register for
Hawker and ensure all
hawkers have licence
R33 000
Hawkers licencing
revenue report
100% of management 100% of
100% of management 100% of management
meeting resolutions
management
meeting resolutions
meeting resolutions
implemented
meeting resolutions implemented
implemented
implemented
100% of
* Secretariat
management meeting
resolutions
implemented
* generate resolutions R0
during management
reviews and circulate to
departments
Register of management
meeting resolution
100% % of ExCo- makgotla
resolutions
implemented
implemented
implemented
during ExCo - makgotla
and circulate to
departments for
implementation
Register of ExColekgotla resolutions and
their implemetation
report
30 # of Business linkages 40 - Business linkages *6 Mining; *1 Sector
facilitated
facilitated: *5
Department; *2
Municipality; *25
Retailers
Mining; *5 Sector
Department; *5
Retailers
0% % progress in
ensuring that the
curriculum of local
FET is mining related
100% progress in
ensuring that the
curriculum of local
FET is mining
related:*20%
Establishment of
engagement team with
FET and Mines;
* 20% Development of
terms of reference of
the task team;
schedule of
engagement;
*40% quarterly
progress report to
6 # of new poverty
7 - new poverty
alleviation projects
alleviation projects
supported
supported:Kgoboko
Poultry;Makgapheng
Farming Co-op;
Gabazi Mixed
Farming;Itsosheng
Madifahlane Project
For the
Aged;Moketeng
Poultry;The Shelter;
Lephothane Poultry
1275 # of jobs created
8000- jobs created
through CWP and
through CWP and
other related
other related
programmes(In-house programmes:* 2000 Inprojects;Mines ;
house projects; *2000
Business; Social
Mines; *1200
institutions; Farming & Business; * 1200
Tourism
*1600 Farming &
tourism
100% % of LED forum
100% of LED forum
resolutions
resolutions
implemented
implemented
*5 Municipality; *6
Mining; *1 Sector
Department; * 1
Retailers
* 500 In-house
social institutions; *400
Farming & tourism
100% of ExCo100% of ExComakgotla resolutions makgotla resolutions
implemented
implemented
implemented
* Resolution
committee
R50,000
Focus Areas
Objectives
GPP
IGR
To ensure that
GTM is portrayed
in ways that
restores trust in
local government
Intergovernment
relation
GPP
Communication
To ensure that
GTM is portrayed
in ways that
restores trust in
local government
Web site updating done as per Turnaround time in
Turnaround time in
pieces of
loading information on loading information on
legislations website
website: 7 days for
pesting HR policies
after adopted by
Council
* 7 days for
Advertisement after
signed off by MM
GPP
KPA
Projects
Baseline KPI
Annual Target
Q1
Q2
Audit
To ensure clean
Audit by 2014
Internal Audit
100% % of council
resolutions
implemented
0 % implementation of
Risk committee
recommendations
FVB
To ensure clean
audit by 2014
BSD
Housing
To reduce housing Housing
backlog with 10% allocations
in GTM by 2017
BSD
Housing
To reduce housing Housing
backlog with 10% allocations
in GTM by 2017
SR
External Audit
Town planning
To ensure
integrated human
settlement
Internal control
Land use
management
80% % progress in
implementing 2011/12
AG respond Action
plan
R15,102,55 R-value spent on
1
Departmental
budget
4 # of housing report
100% % Housing problems
addressed/refered
within 14 days
30days
% of Building plan
approved/considered
within 30/60days
Q4
Enablers
Evidence
* Secretariat
* Speaker
during council sitting
and circulate to
departments for
implementation(Secreta
riat)
* Signing of resolutions(
Speaker)
Register of council
* council resolution
* Submit document to
SITA for pesting at
website
Register of doucment
submitted to IT with
signature IT manager for
acknowledgement
100% of council
resolutions
implemented
100% of council
resolutions
implemented
100% of council
resolutions
implemented
100% of council
resolutions
implemented
Turnaround time in
loading information
on website: 7 days
for pasting HR
policies after
adopted by Council
* 7 days for
Advertisement after
signed off by MM
Turnaround time in
website: 7 days for
pasting HR policies
after adopted by
Council
* 7 days for
Advertisement after
signed off by MM
Turnaround time in
website: 7 days for
pasting HR policies
after adopted by
Council
* 7 days for
Advertisement after
signed off by MM
Turnaround time in
* secretariat
loading information on * IT manager
website: 7 days for
pasting HR policies
after adopted by
Council
* 7 days for
Advertisement after
signed off by MM
50% % of internal audit unit 100% of internal audit 100% of internal
findings addressed
unit findings addressed audit unit findings
addressed
Risk and Fruad
awareness
Expenditure
100% of council
resolutions
implemented
Q3
100% implementation 100%
of Risk committee
implementation of
recommendations
Risk committee
recommendations
100% of internal audit 100% of internal audit 100% of internal audit *internal audit
unit findings
unit findings addressed unit findings
unit
addressed
addressed
100% implementation 100% implementation
of Risk committee
of Risk committee
recommendations
recommendations
100% progress in
AG respond Action
plan
100% implementation * Risk
of Risk committee
management
recommendations
committee
R0
* audit and release
R0
findings to
departments to effect
correction
* generate findings
R0.00
and seek information
from the Corporate
services department
internal audit findings
and their responds
Risk management
committee
recommendation and
respond report
50% progress in
AG respond Action
plan
100%% progress in
implementing
2011/12 AG respond
Action plan
* Finance
* Issue out action
plan
R0
2011/2012 AG action
plan and
* provide budget
R14 777 263
Departmental
Expenditure Report
R14 777 263
R3 694 315
R7 388 631
R11 082 947
R14 777 263
* Finance
Four housing reports
submitted to council(
one per Quarter)
First report
Second report
Third report
fourth report
* Coghsta
* Allocation houses and
* Property manager appoint
contructors(Coghsta)
* Monitor
implementation and
report(Property
manager)
Housing report
100% Housing
problems
addressed/refered
within 14 days
100% Housing
problems
addressed/refered
within 14 days
100% Housing
problems
addressed/refered
within 14 days
100% Housing
problems
addressed/refered
within 14 days
100% Housing
problems
addressed/refered
within 14 days
* IGR/Councillors
* Submit quiries
R0
* Property manager * address/refer matters
Housing problem report
reflecting :* problem,
date registered, *
progress to date
100% of Building plan
approved/considered
within
30/60days(below 500
sq. Metre& above 500
sq. Metre ) respectively
100% of Building
plan
approved/considere
d within
30/60days(below
500 sq. Metre&
above 500 sq. Metre
) respectively
approved/considered
within
30/60days(below 500
sq. Metre )
respectively
approved/considered
within 30/60days(below
500 sq. Metre& above
500 sq. Metre )
respectively
100% of Building plan * Town planners
approved/considered
within
30/60days(below 500
sq. Metre )
respectively
* Approval of building
plans
R0
Bulding plan register of
received plans and
approved acording to
their categories
reflecting: *Applicant
name, *Category of
application,*date
application made, *
progress to date
Focus Areas
Objectives
SR
Property
management
To ensure
integrated human
settlement
Land use
management
SR
Property
management
To ensure
integrated human
settlement
Land use
management
SR
Town planning
To ensure
integrated human
settlement
Land use
management
0 # of beacons
SR
Town planning
To ensure
integrated human
settlement
Land use
management
10% % progress in the
SR
Town planning
To ensure
integrated human
settlement
Land use
management
50% % of non - compliance 100% of non -
SR
KPA
Projects
Baseline KPI
Annual Target
Q1
Q2
Town planning
To ensure
integrated human
settlement
Land use
management
Facility
Managemen
t plan limited
to
Community
Services
% progress in
development of
consolidated Facility
Management plan
40% % of building
contraventions
identified during
routine inspections
addressed
relocated urban
township.
100% progress in
development of
consolidated Facility
Management plan: *
30% - development of
Consolidated FMP; *
70% Stakeholder
engagement
(Management,portfolio
, Exco, Council )
* 30% * 30% Stakeholder
development of
engagement (Exco,
Consolidated FMP; * Council )
40% Stakeholder
engagement
(Management,portfo
lio)
100% of building
contraventions
identified during
routine inspections
addressed
100% of building
contraventions
identified during
routine inspections
addressed
1000 beacons
relocated urban
township.
250
100% progress in the *10% Procurement
establishment of Land establishment of LIMS of Service Provider.
Information
for Ohrisgtad and
Management System Steelpoort-Mapodile.
(LIMS)
observed during
propertie audit
addressed
0% % progress with
facilitation of
Burgersfort Extension
10 Social Housing
project
Q3
100% of building
contraventions
identified during
routine inspections
addressed
100% of building
contraventions
identified during routine
inspections addressed
500
Q4
Enablers
Evidence
.
* B/SCM
* Run procurement
processes for
appointment of service
provider
R0
Facility management
reports.
100% of building
contraventions
identified during
routine inspections
addressed
* building
inspectors
* Do routine inspection
and report
R0
Inspection report
reflecting: Name of the
contravenor,date notice
issued &
acknoowledged,date of
follow up date, progress
to date.
750
1000 * Town planners
40% - *10% Collection
of maps, documents
and diagrams;* 10%
Development of a GIS
base map for the
area; *20%
development of a nonspatial land
information system
(spreadsheet)
30% - 20% Linking the 10% Continuous
spatial and non-spatial updating.
databases; 10%
Completion of the
system.
100% of non compliance observed compliance
during propertie audit observed during
addressed
propertie audit
addressed
100% of non compliance observed
during propertie audit
addressed
100% of non compliance observed
addressed
100% progress with
facilitation of
Burgersfort Extension
10 Social Housing
project ;
*25% Obtaining
Council resolution to
declare the site as
residential area;*25%
Rezoning of the
area;*25% Conducting
market research; *25%
approved building
plans
*25% Conducting
*25% approved building
market research;
plans
*25% Rezoning of the
area
25% Obtaining
Council resolution to
declare the site as
residential area
* B/SCM
* Town planners
100% of non * Inspectors
compliance observed * Legal unit
addressed
* Council
* Town planners
* facilitate the relocation R0
of the beacons
relocation report + survey
diagrams
* procure service
provider
* Develop TOR
R500 000
Land Information
Management System
* Do
inspection(Inspectors)
* Prosecute non compliance
R200,000
Land Use Audit report
reflecting: * Name of the
contravenor,date notice
issued &
acknoowledged,* date of
follow up date, * to date.
* Take resolution(
Council)
* Rezone and approve
building plans
R0
Council Resolution; Land
Use rights; Assesment
report; Market
Research; approved
Building Plans.
Focus Areas
Objectives
SR
Town planning
To ensure
integrated human
settlement
Land use
management
SR
Town planning
To ensure
integrated human
settlement
Land use
management
SR
Town planning
Ensure integrated Sites
human settlement demarcations
SR
Town planning
To Ensure
Formalization of
sustainable human settlements
settlement
0% % progress in
SR
KPA
Projects
Baseline KPI
Annual Target
Q1
Q2
Town planning
To ensure that the Land acquisition
municipality owns
land for
development
0% % progress in
50% % progress in
development of
building plans for
BGF, Steelpoort and
Ohrigstad
120 days
% of section
96,56,92(1)(a)(b) 21 &
22 applications
processed within
120days.
20% % progress
demarcation of new
sites
formalisation of
Mashifane park
facilitation of transfer
of 43.7 hectares of the
farm Praktiseer 275
KT for Loncon
Housing Development
Project
Q3
Q4
Enablers
Evidence
* Council
* Town planners
* Take resolution(
Council)
* Rezone and approve
building plans
R200,000
Report on the
development of
databased building plan
R0
Report reflecting: List of
application received per
categories, date of
receive, progress to date
100 % progress in
development of
building plans for BGF,
Steelpoort and
Ohrigstad:
*25% Procurement of
the service of architect;
and
final database for
building plans
*25% Procurement * 25% Development of
of the service of
final database for
architect; and
building plans
* 25% Development
of final database for
building plans
100% of section
96,56,92(1)(a)(b) 21 &
22 applications
processed within
120days.
100% of section
96,56,92(1)(a)(b) 21
& 22 applications
processed within
120days.
100% of section
96,56,92(1)(a)(b) 21 &
22 applications
processed within
120days.
100% of section
96,56,92(1)(a)(b) 21 &
22 applications
processed within
120days.
100% of section
* Town planning
96,56,92(1)(a)(b) 21
& 22 applications
processed within 120
days.
* receive and approval
of applications
100% progress in
demarcation of sites
project(s):
35% - * 5%
Application for/
Confirmation of
funding from DLGH;
*5% Site
identification; *5%
topo-cadastral
survey compeleted;
5% Geotechnical
investigation done;*
5% Environmental
Impact Assessment
done;*5% Floodling
determined; *5%
Draft layout plan
drawn.
15% -* 5% All
specialist studies
completed &
submitted to
competent authority
(i.e. EIA, Geotech, and
Geo-Hydrological
investigation);*5%
Community
consultation meetings
(both pre-resolution
and Resolution
meetings) done;*5%
Complete application
submitted to
competent authority.
20% -* 5%
Environmental
Authorisation granted
(LEDET); *5%
Approved Layout
plan;*5% Draft General
Plan (GP) submitted to
Surveyor-General
(SG); *5% Approved
GP.
30% - *10%
Demarcated sites
pegged; *20%
Handing over of
layout plan and
General Plan to
relevant traditional
authorities for
allocation.
* DLGH
* Survey
* LEDET
* fund the
R2, 600,000
programme(DLGH)
* Conduct EIA (Survey)
* Grant Environmental
authorisation(LEDET)
Topo-cadastral diagram;
EIA Report; Geotechnical
report;
60% progress in
formalisation of
Mashifane park:
*20% (Community/
Tribal Resolution;
Procurement of
service provider) ;*20%
(Topocadastral survey;
draft layout plan; geotechnical survey; EIA
Exemption; logging of
Township application);
*10% (Township
Approval);
*10% (Generation of
GP; Pegging/boundary
alignment)
*20% (Community/
Tribal Resolution;
Procurement of
service provider)
*20% (Topocadastral *10% (Township
survey; draft layout
Approval)
plan; geo-technical
survey; EIA
Exemption; logging of
Township application)
*10% (Generation of
GP;
Pegging/boundary
alignment)
* Community
* finance
*Topocadastral
survey
* Take tribal resolution
(community)
* Procure service
provider(Finance)
* draft layout
plan(Topocadastral
survey)
R 800 000
Community resolution;
EIA Exemption; Draft
Layout Plan; T-ship file;
General plan
100% progress in
transfer of 43.7
hectares of the farm
Praktiseer 275 KT for
Loncon Housing
Development Project
25% Facilitate all
outstanding matters
as raised with the
municipality
25% Deveolpment
ofTerms of deed of
donation/transfer
agreed upon
25% Property
registered in the
GTM's name
* Property manager * run the facilitation
processes of land
transfer
R0
Copy of Letter to the
Department detailing
status and progress from
time to time
25% Signed Deeds of
Donation
0% % progress facilitation 100% progress in
municipality owns
land for
development
0% % progress in
municipality owns
land for
development
0% % progress in
municipality owns
land for
development
0% % progress facilitation 100% progress in
SR
municipality owns
land for
development
Town planning
SR
Objectives
Town planning
SR
Focus Areas
Town planning
SR
KPA
Town planning
Projects
Baseline KPI
Annual Target
Q1
Q2
of transfer of portion of
the farm Praktiseer
275KT for Segorong
Relocation Project
of Remainder and all
other portions of the
farm Praktiseer 275KT
of portions
(1,8,9,10,11,12,15 &
R/E) 1316.28 hectares
of the farm
Aapiesdoorndraai
298KT
Q3
Q4
Enablers
Evidence
25% Facilitate all
outstanding matters
as raised with the
municipality
25% Deveolpment
ofTerms of deed of
donation/transfer
agreed upon
25% Signed Deeds of
Donation
25% Property
registered in the
GTM's name
processes of land
transfer
R0
time to time
100% progress in
of Remainder and all
other portions of the
farm Praktiseer 275KT
25% Facilitate all
outstanding matters
as raised with the
municipality
25% Deveolpment
ofTerms of deed of
donation/transfer
agreed upon
25% Signed Deeds of
Donation
25% Property
registered in the
GTM's name
processes of land
transfer
R0
time to time
100% progress in
facilitation transfer of
portions
(1,8,9,10,11,12,15 &
R/E) 1316.28 hectares
of the farm
Aapiesdoorndraai
298KT
25% Facilitate all
outstanding matters
as raised with the
municipality
25% Deveolpment of
Terms of deed of
donation/transfer
agreed upon
25% Signed Deeds of
Donation
25% Property
registered in the
GTM's name
processes of land
transfer
R0
time to time
25% Deveolpment
ofTerms of deed of
donation/transfer
agreed upon
25% Signed Deeds of
Donation
25% Property
registered in the
GTM's name
processes of land
transfer
R0
time to time
of portion of the farm
Praktiseer 275KT for
Segorong Relocation
Project
25% Facilitate all
of transfer of
facilitation of transfer outstanding matters
portions(1,4,5,6,9 &
of portions(1,4,5,6,9 & as raised with the
R/E) 1324.27 hectares R/E) 1324.27 hectares municipality
of the farm
of the farm
Steelpoortdrift 298KT Steelpoortdrift 298KT
Focus Areas
Objectives
GPP
Traffic
To improve
Regulation of
accessibility and Traffic
mobility of
transport by 2017
GPP
Traffic
To improve
Regulation of
accessibility and Traffic
mobility of
transport by 2017
GPP
Disaster
Management
To improve
social cohesion
in GTM
Disaster
management
GPP
Disaster
Management
To improve
social cohesion
in GTM
Disaster
management
GPP
Disaster
Management
To improve
social cohesion
in GTM
Disaster
management
FVBM
Traffic
To improve
Revenue
revenue base by enhancement
2017
R500 000
FVBM
COMMUNITY SERVICES
KPA
Projects
Baseline
Licensing
To improve
Revenue
2017
R2 000 000
KPI
4 # of Road safety
campaigns held
10 # of joint operations
conducted
Annual Target
Q1
Two (2) Road safety
campaigns held:
*One (1)Pedestrian
road safety campaign
*One (1)Arrive Alive
Campaign
Ten(10) joint
Operations conducted
Q2
Q3
1 Pedestrian road
safety campaign
Q4
Enablers
Enabler's
activities
Budget
Evidence
*One (1)Arrive Alive
*Roads & Transport *Coordination
R0
*Traffic personnel
(Roads & Transport
* Stakeholders
and stakeholders)
* Facilitation and
Management (
Traffic personnel)
Road safety
reports with photos
depicting dates of
the campaigns
*Stakeholders
* DRT
*B/Supply Chain
* joint planning(
R0
stakeholders &
DRT)
* procurement for
the events( B/SCM)
joint operations
reports with photos
depicting dates of
the operations
Three (3) joint operations Two(2) joint
operations
Three(3) joint
operations
Two(2) joint operations
*10% Rural Safety
meeting
*5% Disaster
mangement advisory
meetings;
*5% Disaster
Awareness;
* 5% Fire wareness,
Flood lines settlement.
*5% Fire Awareness,
*10% Rural Safety
meeting
* 5% Disaster
mangement
advisory meetings
*5%Disaster
Awareness
Campaing.
*5% Fire
Awareness, Flood
lines settlement.
*10% Rural Safety
meeting
* 5% Disaster
mangement
advisory meetings
*5%Disaster
Awareness
Campaing.
*5% Fire
Awareness, Flood
lines settlement.
*10% Rural Safety
* SAPS
meeting
* 5% Disaster
mangement advisory
meetings
*5%Disaster Awareness
Campaing.
*5% Fire Awareness,
* facilitation of
R0
meetings and
provision of minutes
*Minutes of
meetings held;
*Minutes/reports &
attendent register
for campaigns
held
100% mitigation of
reported disasters: *50%
reported incident
attended to within 12
hours and assessment
report generated; *50%
Qualifying victims
provided with relief
material within seven
days
100% mitigation of
reported disasters:
*50% reported
incident attended to
within 12 hours and
assessment report
generated; *50%
Qualifying victims
material within
seven days
100% mitigation of
reported disasters:
*50% reported
incident attended to
within 12 hours and
assessment report
generated; *50%
Qualifying victims
material within
seven days
100% mitigation of
reported disasters: *50%
reported incident
Qualifying victims
days
* Finanace
* district municipality
and provincial
government
* Availability of fleet R150 000
* Support local
municipality with
relief materials
* Disaster
report(indicating
number of disaster
reported; date/time
the incident was
reported and when
the assessment
was done and
when the relief
materials were
provided)
* File of
letters/forms
signed by victim
acknowledging the
receive of the
relief materials
100% progress in the
development of pauper
policy:
*40% Development of
the draft policy;*30%
stakeholder
engagements(
Management,portfolio,
Exco & council);*15%
workshop the policy to
stakeholders ;*15
implemetation of the
policy
*40% Development of
the draft policy;*15%
stakeholder
engagements(
Management , labour &
portfolio)
*15% stakeholder
engagements(
Exco & council)
*15% workshop the
policy to External
stakeholders ; *15%
implementation of
the policy
* Social unit
* Facilitate the
R0
development of the
pauper policy
*Minutes &
attendent register
for stakeholders
engagement
meetings;* Draft
pauper policy;*
council resolution
R-Value collected
from traffic fines
R1 000 000
R250 000
R250 000
R250 000
R2 500
* Traffic unit
Traffic fine report
reflecting revenue
collected
R-Value collected
from change of
Licence/ application
fees
R2 500 000
R625 000
R625 000
R625 000
R625 000
* Traffic unit
* Issueng out fine
R1 000 000
and enforcing road
blocks;
* issueng out
warrant of arrest
* availability of staff R2 500 000
to perfom services.
implementation of
implementation of
disaster management disaster management
plan
plan :* 4X Rural Safety
meeting (40%)
* 4X Disaster
mangement advisory
meetings (20%);
*4X Disaster
Awareness campaigns
(20%);
* 4X Fire wareness,
Flood lines settlement
(20%).
%
progress
in
the
100% mitigation of
100%
mitigation of reported reported disasters:
disasters.
*50% reported incident
Qualifying victims
days
development of
pauper policy
Vehicle
registration report
reflecting revenue
collected
COMMUNITY SERVICES
Focus Areas
Projects
Baseline
Budget
To improve
budget
planning
management
processes
across
departments
Communication
To ensure that
Web site updating done as per pieces of
GTM is portrayed
legislations
in ways that
restores trust in
local government
Audit
To ensure clean Internal Audit
Audit by 2014
Promote
functionality of
budget steering
committee
Risk and Fruad
awareness
External Audit
KPI
Annual Target
Q1
Q2
Q3
Q4
Enablers
Enabler's
activities
R-value on vehicle
registration
Commission
R3 000 000
R750 000
R750 000
R750 000
R750 000
* Traffic unit
* availability of staff R3 000 000
to perfom services.
Vehicle
registration report
reflecting revenue
collected
Revenue collected
from driver licences
R1 500 000
R375 000
R375 000
R375 000
R375 000
* Traffic unit
Driver licence
revenue report
100% of driver licences 100% of driver licences
processed within 3
processed within 3
weeks.
weeks.
100% of driver
licences
processed within 3
weeks.
100% of driver
100% of driver licences
licences processed processed within 3
within 3 weeks.
weeks.
* Traffic unit
* Prodiba
* Implement
R1 500 000
strategies that will
encourage public to
take drivers licence
with GTM
*for the submision R0
of lisences to
Prodiba in
time(Traffic unit)
* return of the
licenses in
time(Prodiba)
Revenue collected
from learners
licences
R1 500 000
R375 000
R375 000
R375 000
R375 000
* Traffic unit
* Implement
R1 500 000
encourage public to
take Learners
licence with GTM
Learners licence
revenue report
Revenue collected
through issueng
vehicle permits
R15 000
R3 750
R3 750
R3 750
R3 750
* Traffic unit
Implement
R15 000
encourage hehicle
owners to renew
their permit when
due
Learners permit
revenue report
R-value spent on
Departmental
budget
Com Services: R8
485 105
Traffic : R11 304 450
Cemeteries : R3 928
587
Social Services: R2
825 136
Com Services: R2 121
276
Traffic : R2,286 112
Cemeteries : R982
146
Social Services: R706
284
Com Services: R4
242 552
Traffic : R5 652
225
Cemeteries : R1
964 293
Social Services:
R1 412 568
Com Services: R6
363 828
Traffic : R8
478337
Cemeteries : R2
946 440
Social Services:
R2 118 852
Com Services: R8
* Finance
485 105
Traffic : R11 304 450
Cemeteries : R3 928
587
Social Services: R2
825 136
* Issue out
Budget and
balance update
Turnaround time in
website: 7 days for
adopted by Council
* 7 days for
Advertisement after
signed off by MM
Turnaround time in
loading information
on website: 7 days
for pasting HR
policies after
adopted by Council
* 7 days for
Advertisement after
signed off by MM
Turnaround time in
loading information
on website: 7 days
for pasting HR
policies after
adopted by Council
* 7 days for
Advertisement after
signed off by MM
Turnaround time in
* secretariat
website: 7 days for
adopted by Council
* 7 days for
Advertisement after
signed off by MM
* council resolution R0
* Submit document
to SITA for pesting
at website
100% of internal
audit unit findings
addressed
100% of internal
audit unit findings
addressed
100% of internal audit
unit findings addressed
100% implementation of 100% implementation of 100%
Risk committee
Risk committee
implementation of
recommendations
recommendations
Risk committee
recommendations
100%
implementation of
Risk committee
recommendations
100% implementation of * Risk
Risk committee
management
recommendations
committee
100% progress in
AG respond Action plan
50% progress in
100%% progress in
* Finance
implementing
2011/12 AG
AG respond Action plan
respond Action plan
100% % of driver licences
processed within 3
weeks.
FVBM
To improve
Revenue
2017
GPP
Licensing
Objectives
GPP
FVBM
KPA
Com Services:
R2,312,074
Traffic : R9,631,967
Cemeteries :
R2,258,315
Social Services:
R2,245,148
Turnaround time in
Turnaround time in
website
website: 7 days for
pesting HR policies after
adopted by Council
* 7 days for
Advertisement after
signed off by MM
50% % of internal audit unit 100% of internal audit
findings addressed
unit findings addressed unit findings addressed
Risk committee
recommendations
80% % progress in
implementing
2011/12 AG respond
Action plan
Budget
Evidence
Drivers licenses
processing report
(reflecting number
of driver licences
applications, when
application made
and when the
licence were
available for
collection in GTM,
delivery note)
Com Services: Expenditure
R8 485 105
report
Traffic : R11
304 450
Cemeteries : R3
928 587
Social Services:
RR2 825 136
*internal audit unit * audit and
R0
release findings
to departments to
effect correction
Council
resolutions;
Register of
doucment
submitted to IT
with signature IT
manager for
acknowledgement
internal audit
findings and their
responds
* generate
R0.00
findings and seek
information from
the Corporate
services
department
Risk management
committee
recommendation
and respond
report
* Issue out action R0
plan
2011/2012 AG
action plan and
COMMUNITY SERVICES
Q2
Q3
Q4
Enablers
Enabler's
activities
100% progress in
implementing HIV/AIDS
strategy:*4x LAC
meetings(40% ),*
health centre
established(30%);*main
streaming activities
(20%),* 4x quarterly
events(10%).
10% LAC meetings,*40%
health centre*5%
mainstreaming;
*4% events.
10% LAC
meetings,*5%
mainstreaming, *2%
events.
10% LAC
10% LAC meetings,*5%
meetings,*5%
mainstreaming,
*2%
mainstreaming, *2% events.
events.
Turnaround time in
website: 7 days for
adopted by Council
* 7 days for
Advertisement after
signed off by MM
Turnaround time in
loading information
on website: 7 days
for pasting HR
policies after
adopted by Council
* 7 days for
Advertisement after
signed off by MM
Turnaround time in
loading information
on website: 7 days
for pasting HR
policies after
adopted by Council
* 7 days for
Advertisement after
signed off by MM
*Friendly Game;
*Chess tournament;
* Tournament for
bulletjies(Primary
schools)
100% of Sports,
Arts & Culture
Council meetings
resolutions
implemented:
Budget
Evidence
* Coordinator
*Stakeholders
*Corperate servicesinternal
maintreaming.
*Coordination of
R0
activities( coordinator)
*Joint planning for
internal
maintreaming( co ordinator,
stakeholders,
corporate services).
*resolution of LAC
meetings & it
progress
report;*Progress
report on the
establishment of
Health
centre;*Events
reports;* report on
mainsreaming
activities in
progress
Turnaround time in
* secreatariat
loading information on manager
website: 7 days for
* IT manager
adopted by Council
* 7 days for
Advertisement after
signed off by MM
* council resolution R0
* Submit document
to SITA for pesting
at website
Council
resolutions;
Register of
doucment
submitted to IT
with signature IT
manager for
acknowledgement
*Friendly game,
*O.R.Tambo
games.
* Tournament for
U16 & U18(
Secondary schools)
*Establishment of
rugby tournament
*Friendly Game ,
* Mayoral Cup.
* Tournament for
community clubs
*Sport Council
* Budget/Supply
Chain
*Federations
*Cooordination(s/co R0
uncil & Federation)
* Procurement for
events(Budget/SCC
M)
Report with photos
of the
events(dated)
100% of Sports, Arts
& Culture Council
meetings
resolutions
implemented:
100% of Sports, Arts &
Culture Council
meetings resolutions
implemented:
*Sport Council
* Budget/SCM
*Cooordination(Spo R0
rt council)
* Procurement for
event(
Budget/SCM)
*Arts Council
* Budget/SCM
*Cooordination(Spo R0
rt council)
* Procurement for
event(
Budget/SCM)
Register of
resolutions taken
in Sports, Arts &
Culture Council
meetings and
implementation
report
Report with photos
of the
events(dated)
GPP
Q1
Socio
development
GPP
Annual Target
IGR
GPP
To ensure
Website update
council is
portrayed in ways
that restores trust
in local
government
KPI
Sport and Culture To improve
social cohesion
in GTM
GPP
To improve
social cohesion
in GTM
Baseline
social cohesion
in GTM
GPP
Projects
social cohesion
in GTM
FVBM
Objectives
Library
To improve
Revenue
revenue base
enhancement
with 25% by 2017
R1000 R-Value collected
(R5 000)
from library
affiliations(Membershi
p)
(R1,250)
(R1,250)
(R1,250)
(R1,250)
* Library staff
* Collection of
funds ( Library
staff)
* Recruitment of
new members (
Library staff)
FVBM
Focus Areas
Library
To improve
Revenue
revenue base
enhancement
with 25% by 2017
R1100 R-Value collected
(R1210)
from library fines(lost
books)
(R302.5)
(R302.5)
(R302.5)
(R302.5)
* Library staff
* Issueng of the
(R1210)
fines ( Library staff)
* Elevate non compliance to
Legal for summons
( Library staff)
Revenue report for
lost books
payments
FVBM
KPA
Library
To ensure
Integrated Asset
effective, efficient management
and responsive
economic
infrastructure
network and
assets by 2017
300 new books
*Budget/Supply
Chain *DSAC
*Purchase of
R50 000
books(Budget/SCM
).
* Supply of
books(DSAC)
List of purchased
books
Special groups
Sport, Arts and
Cultural activities
Sport, Arts and
Cultural activities
Sport, Arts and
Cultural activities
50% % of progress in
implementing
HIV/AIDS strategy.
done as per pieces of
legislations
Turnaround time in
Turnaround time in
website
website: 7 days for
pesting HR policies after
adopted by Council
* 7 days for
Advertisement after
signed off by MM
7 # sporting events held 13x sports events held: *Friendly Game.
100% % of Sports, Arts &
Culture Council
attended to
*1xO.R. Tambo
games*1xMayoral
cup;*1xMayor 's
Marathon;*1xChess
tournament;
games;*1xCricket
Festival;* 4xfriendly
games, * 4x Rugby
tournaments
*Cricket Festival and
*Mayor 's Marathon.
* Bulletjies U7&U8, U16
& U18 and community
clubs
Culture Council
implemented:
Culture Council
implemented:
3 # of Cultural activities 1x Beauty Pageant 1x
conducted
0 # Number of books
purchased and
acquired.
1x Beauty Pageant 1x
Cultural Show & Poetry Cultural Show
Workshop
300 new books
(R5 000)
Library fines and
membership
report
Focus Areas
Objectives
GPP
Library
To improve
social cohesion
in GTM
BSD
Environment
To create a
Planting trees
healthy
environment for
the community of
Tubatse by 2030
1 # of Arbor Day
BSD
Environment
To create a
Planting trees
healthy
environment for
the community of
Tubatse by 2030
500 # of trees planted
BSD
Environment
To create a
Parks and Garden
healthy
environment for
the community of
Tubatse by 2030
BSD
COMMUNITY SERVICES
KPA
Projects
Environment
To create a
Parks and Garden
healthy
environment for
the community of
Tubatse by 2030
Sport, Arts and
Cultural activities
Baseline
KPI
4 # of Library
programmes
conducted
Annual Target
Q1
Q2
Q3
2 Library programmes Literacy week
conducted: Literacy
week & Worldbook day
1 1(one)event
Q4
Enablers
Enabler's
activities
World book Day
* DSAC
* Education
* Aged
* Budget/ Supply
Chain
*
R0
Partners/participant
s for events
(DSAC,Education &
aged)
*distribution of
books (DSAC)
* procurement for
events (Budget/
SCM)
* procurement for R0
events and
trees(Budget/SCM)
* Joint
Planning(Sponsor)
Events reports with
photos(dated)
* procurement and External Funding
supply of trees
(Sponsor)
* Joint Planning
(Sponsor)
Reports with
photos(dated)
Photos of
debushed area
before and after
debushed
*Budget/Supply
Chain
Celebration
* Sponsors
500
debushing and
debushing and
maintenance of open maintenance of open
spaces.
spaces:* 20% Cutting of
the trees & grass on the
side of the main road;
20%*R37 Engine
garage to Aloe Ridge;
20%*R555 from robot to
St Tomas
*20%R555 from St/Ly to
Tubatse Ferro
*20% 2
townships(praktiseer
and Mapodile)
maintenance of
parks.
maintenance of parks:
20% Cutting of lawn.
20% Removal of weeds.
20% Irrigation.
20% Application of
fertilizers.
20% Pruning of flowers.
95 *Sponsor
Budget
5
320
80
debushing and
maintenance of open
20%*R37 Engine
St Tomas
Tubatse Ferro
*20% 2
townships(praktiseer and
Mapodile)
100% progress in
the debushing and
maintenance of
open spaces:* 20%
Cutting of the trees
& grass on the side
of the main road;
20%*R37 Engine
garage to Aloe
Ridge;
20%*R555 from
robot to St Tomas
*20%R555 from
St/Ly to Tubatse
Ferro
*20% 2
townships(praktisee
r and Mapodile)
100% progress in
the debushing and
maintenance of
open spaces:* 20%
Cutting of the trees
& grass on the side
of the main road;
20%*R37 Engine
garage to Aloe
Ridge;
20%*R555 from
robot to St Tomas
*20%R555 from
St/Ly to Tubatse
Ferro
*20% 2
and Mapodile)
* Technical
debushing and
* Foremen
maintenance of open
20%*R37 Engine
St Tomas.
Tubatse Ferro
*20% 2
and Mapodile)
* Provide
machinary for
debushing(Tech)
*supervision
(Foremen)
maintanance of parks:
20% Irrigation.
20% Application of
fertilizers.
100% progress in
the maintanance of
parks: 20% Cutting
of lawn.
20% Removal of
weeds.
20% Irrigation.
20% Application of
fertilizers.
20% Pruning of
flowers.
100% progress in
the maintanance of
parks: 20% Cutting
of lawn.
20% Removal of
weeds.
20% Irrigation.
20% Application of
fertilizers.
20% Pruning of
flowers.
* EPWP
maintanance of parks: * Foreman
* Budget/SCM
20% Irrigation.
20% Application of
fertilizers.
* for maintanance R0
(EPWP)
*supervision
(Foreman)
* Precurement and
supply of Working
Tools
(Budget/SCM)
R0
Evidence
Events reports with
photos(dated)
Parks maintaince
plan and its report
Focus Areas
Objectives
BSD
Cemeteries
To improve
social cohesion
within GTM by
2016
Public amenities
development
BSD
Cemeteries
To improve
social cohesion
within GTM by
2016
Public amenities
development
40% % compliance to the 100% compliance to
GPP
IGR
To ensure that
Intergovernment
in ways that
restores trust in
local government
meeting resolutions
attended to
GPP
IGR
To ensure that
Intergovernment
in ways that
restores trust in
local government
100% % of ExCo- makgotla 100% of ExCoresolutions attended makgotla resolutions
to
attended to
GPP
COMMUNITY SERVICES
KPA
Projects
Baseline
KPI
IGR
To ensure that
Intergovernment
in ways that
restores trust in
local government
100% % of council
resolutions
implemented
maintenance of
cemeteries.
Annual Target
Q1
Q2
Q3
Q4
maintenance of
cemeteries:
60% Clearing grasses
and bushes in the grave
yard at Praktiseer
yard at Ohrigstad
yard at Mapodile
yard at Penge
maintenance of
cemeteries:
yard at Praktiseer
yard at Ohrigstad
yard at Mapodile
yard at Penge
100% progress in
the maintenance of
cemeteries:
60% Clearing
grasses and bushes
in the grave yard at
Praktiseer
20% Clearing
grasses and bushes
Ohrigstad
10% Clearing
grasses and bushes
Mapodile
10% Clearing
grasses and bushes
Penge
100% progress in
the maintenance of
cemeteries:
60% Clearing
grasses and bushes
Praktiseer
20% Clearing
grasses and bushes
Ohrigstad
10% Clearing
grasses and bushes
Mapodile
10% Clearing
grasses and bushes
Penge
* EPWP
maintenance of
* Foreman
cemeteries:
* Budget/SCM
yard at Praktiseer
yard at Ohrigstad
yard at Mapodile
yard at Penge
* for maintanance R0
(EPWP)
*supervision
(Foreman)
* Precurement and
supply of Working
Tools
(Budget/SCM)
Cemetery
maintaince plan
and its report
100% compliance
to the developed
Cemetery
Management
System:
40% Preparation of
grave pits.
40% Allocation
&numbering of
graves.
20% Alignment of
graves.
100% compliance
to the developed
Cemetery
Management
System:
40% Preparation of
grave pits.
40% Allocation
&numbering of
graves.
20% Alignment of
graves.
100% compliance to
the developed Cemetery
Management System:
40% Preparation of
grave pits.
40% Allocation
&numbering of
graves.
20% Alignment of
graves.
* General Assistants
* Cooperate
Services* Budget/Supply
Chain* Technical-
* for maintanance
(General
assistants)
* appointment of
Foreman
(corporate)
* purchase of
Working Tools (
Budget/Supply
Chain-)
*Availability of
TLB(Tech)
R80,000
Report on the
implementation of
cemetery
management
system
100% of
management
meeting resolutions
attended to
100% of
100% of management
management
meeting resolutions
meeting resolutions attended to
attended to
* Secretariat
* generate
resolutions during
management
meeting and
circulate to
departments
R0
Register of
management
meeting resolution
100% of ExCo- makgotla 100% of ExCoresolutions attended to
makgotla
resolutions attended
to
100% of ExCo100% of ExComakgotla
makgotla resolutions
resolutions attended attended to
to
* Resolution
committee
* generate
resolutions during
ExCo - makgotla
and circulate to
departments for
implementation
R0
Register of ExColekgotla
resolutions and
their
implemetation
report
100% of council
resolutions
implemetation
100% of council
resolutions
implemetation
* Secretariat
* Speaker
* generate
R0
resolutions during
council sitting and
circulate to
departments for
implementation(Se
cretariat)
* Signing of
resolutions(
100% compliance to the
developed Cemetery the developed
developed Cemetery
Management System Cemetery Management Management System:
System:
40% Preparation of
40% Preparation of
grave pits.
grave pits.
40% Allocation
40% Allocation
&numbering of
&numbering of
graves.
graves.
20% Alignment of
20% Alignment of
graves.
graves.
100% of management
meeting resolutions
attended to
100% of council
resolutions
implemetation
100% of management
meeting resolutions
attended to
100% of council
resolutions
implemetation
100% of council
resolutions
implemetation
Enablers
Enabler's
activities
Budget
Evidence
Register of council
resolutions and
their
implemetation
report
Focus Areas
Objectives
GPP
Public
Participation
To ensure
Public participation
sufficient political and IGR
championship
and
accountability
GPP
Public
Participation
To ensure
Public participation IDP/PMS/Budget Forums in # of IDP/PMS/Budget 2- IDP/PMS/Budget
place
forums facilitated
forums facilitated
championship
and
accountability
GPP
Public
Participation
To ensure
championship
and
accountability
GPP
Public
Participation
To ensure
championship
and
accountability
GPP
COMMUNITY SERVICES
KPA
Projects
Baseline
KPI
Annual Target
Public
Participation
To promote Civic Ward committee
Education
50% % of outreach issues 100 % of outreach
addressed.
issues addressed
100% % of Capital projects
in /constructed which
have/had established
project steering
committee
% of petition
committee issues
addressed
29 % functionality of
ward committees
Q1
Q2
100 % of outreach issues 100 % of outreach
addressed
issues addressed
Q3
Q4
Enablers
100 % of outreach
issues addressed
100 % of outreach
issues addressed
* Public participation * Develop public
R0
* Secretariat
participation
* IGR
programme (Public
participation)
* Record matters
raised during
Outreach(
Secretariats).
* follow up on the
progress on
matters raised
during outreach
and report
progress( IGR)
1- IDP/PMS/Budget
forums
facilitated(Stakehol
der consultation)
Evidence
* Outreach
programme;*
Matters raised and
their progress
* minutes of the
forum and
attendent register
Register of issues
raised and its
implementation
report
100% of Capital projects
project steering
committee
100% of Capital
projects in
/constructed which
have/had
established project
steering committee
100% of Capital
projects in
/constructed which
have/had
established project
steering committee
100% of petition
committee issues
addressed
100% of petition
committee issues
addressed
100% of petition
committee issues
addressed
100% of petition
committee issues
addressed
100% of petition
committee issues
addressed
100% functionality of
ward committees:
*40% Ability to meet
monthly
*40% Ability to hold
quarterly mass
meetings
* 20% Abliity to submit
speakers' office .
ward committees:
monthly
quarterly mass meetings
speakers' office .
100% functionality
of ward
committees:
monthly
quarterly mass
meetings
* 20% Abliity to
submit quarterly
reports to speakers'
office .
3
*Public participation
ward committees:
unit
monthly
quarterly mass meetings
speakers' office .
# of ward committee 4 ward committee
reports generated and reports per quarter
submitted to
speaker's office
Budget
1- IDP/PMS/Budget
* IDP/PMS/Budget * Preparation of the R55 000
forums facilitated( public unit
presentation(
consultation)
* Public participation IDP/PMS/Budget
unit)
* co -ordinate the
IDP/PMS/Budget
forum
100% of Capital projects *Technical
* Provision of list of R0
* Public participation projects that are
unit
about to be build (
project steering
tech)
committee
* Facilitate the
establishment of
project steering
committees(PP)
100% of Capital
projects in /constructed
which have/had
established project
steering committee
100% functionality
of ward
committees:
monthly
quarterly mass
meetings
* 20% Abliity to
submit quarterly
reports to speakers'
office .
1
2
Enabler's
activities
*Public participation * Co-ordinate
R0
unit
petition committee
* Departments
*Provide progress
on raised
issues(departments
)
4 * ward councillors
Project steering
committee
establishment
reports
* Facilitate the
R0
establishment,
inaguration and
induction of ward
committees
*Generate reports
to Speaker's office.
Ward committee
reports
to submit reports
quarterly reports
* Generated report
acknowledgement
from the
Speaker's office
R0
Focus Areas
Objectives
IDT
HR(Policies)
To build a
disciplined or
organizational
culture by 2013
IDT
HR(Training)
To capacitate GTM Skills development
Employees for
program
optimal servicce
delivery by 2015
IDT
HR( Recruitment)
To reduce the
salary bill to a
minimum
requirement by
2017
Workstudy
Ensure optimal
Organizational
utilization of the
structure
available workforce
by 2013
IDT
OHS
To build a
disciplined or
organizational
culture by 2013
Review and
enforcement HR
policies
IDT
CORPORATE SERVICES
KPA
Projects
OHS
To build a
disciplined or
organizational
culture by 2013
Review and
enforcement HR
policies
Review and
enforcement HR
policies
Appointments on
vacant positions
Baseline
KPI
Annual Target
Q1
Q2
Approved HR % of approved HR
policies
policies inducted to
Employees
100% of approved
policies(28) inducted to
employees
50% of approved
policies(14) inducted to
employees
100% of approved
policies (28)
inducted to
employees
100%
progress in
developemnto
f 2012/13
skills program
100% progress in
implementation of 2012/13
skills program:*20%
Identify and enrol
employees for Training;*
40% Submission of
quarterly training report
LGSETA; *40% Facilitate
quarterly training
meeting(4);*5% Conduct
skill audit;* 5% Review and
develop WSP
*10% Identify and enrol
employees for Training;*
10% Submission of
LGSETA; *10% Facilitate
quarterly training
meeting(1)
* 10% Submission of
quarterly training
report LGSETA;
*10% Facilitate
quarterly training
meeting(1)
% progress in
implementation of
2012/13 skills
program( Training of
Staff)
Q3
*10% Identify and enrol
employees for
Training;* 10%
Submission of quarterly
training report LGSETA;
*10% Facilitate
quarterly training
meeting(1)
Q4
* 10% Submission of
LGSETA; *10%
Facilitate quarterly
training meeting(4);*5%
Conduct skill audit;* 5%
Review and develop
WSP
12 # of vacant budgeted 12 vacant budgeted posts
posts filled within
filled within three months
three month
50% progress % progress in review
made
of organization
structure
100% % implementation of
OHS programmes
Enablers
Evidence
* HR manager
* Arrange induction
workshop for the
policies to council (HR)
*
Attendence register
* MM
* Training
committtee
* Labour Union
* Development of
R880 000
WSP(training
committee)
* Sign off of WSP(MM &
Labour Union)
Monthly and Annual
training reports
* HR manager
* Advertisement of Posts R0.00
* Interviews,
* Generation of
appointment
recommendation report
Copy of advert,
recruitment report
indicating when
recruitment started
and when
appointment was
done
* HR manager
* coordinate the
processes
R0.00
* Evaluation and job
description report
with sample of work
done; * council
resolution
R220 000
*OHS Audit report;
* site inspection
report;
* Minutes of OHS
meetings; * reports
on training
conducted; * Report
on COIDA
intervention
conducted
*Ensure compliance with R185 000
Hygiene standards for
office cleanness
Copy of delegations;
Amenities& PPE
dispatch lists;
50% progress in the review *20% Developing job
of Organization structure:
description
*20% Development of job
descriptions; * 20% Job
evaluation & costing,
Alignment with IDP &
council aproval
* 20% Job
evaluation and
costing
* 10% Alignment with
IDP and council
approval
100% implementation of
OHS programmes :
*20% Conduct OHS audit;
*20% Site inspection;
* 20% Co- ordinate OHS
meetings; * 5% training of
OHS reps; *10% facilitate
first Aid and fire fighting
training; * 20% Facilitate
COIDA interventions; 5% *
conduct OHS mock drill
training
* 5% Co- ordinate
OHS meetings;* 5%
Facilitate COIDA
interventions
meetings; * 5% training
of OHS reps; *5%
facilitate first Aid and
fire fighting training; *
5% Facilitate COIDA
interventions;
* OHS committee * develoment of OHS
programme
meetings; * 5%
Facilitate COIDA
interventions;
*10% - Provision of
requisite cleaning
amenities ;*15% provision of PPE
*10% - Provision of
requisite cleaning
amenities ;
0 % compliance with
hygiene standards for hygiene standards for
Office cleanliness
Office cleanliness: *30% Clear area delegations for
cleaners; *40% - Provision
of requisite cleaning
amenities;*
*30% - provision of PPE
*20% Conduct OHS
audit;
meetings; * 5% training of
OHS reps; *5% facilitate
first Aid and fire fighting
training; * 5% Facilitate
COIDA interventions; 5%
* conduct OHS mock drill
training
*30% - Development of *10% - Provision of
clear area delegations
requisite cleaning
for cleaners ; *10% amenities ;
Provision of requisite
cleaning amenities;
*15% - provision of PPE
*OHS officer
R0. 0
CORPORATE SERVICES
Focus Areas
LED
KPA
Special
programmes
Objectives
Projects
Baseline
KPI
Annual Target
Q1
Q2
Q3
Q4
Enablers
Evidence
Employee medical
finesst certificates;
Survey report;
Referral report;
report on sporting
activity taken
To build a
disciplined or
organizational
culture by 2013
Review and
enforcement HR
policies
Adhoc
interventions
# of employee
Eleven Wellness
wellness programmes programmes
implemented.
implemented:*5x Physical
Wellness( 1XStaff sporting
activity and 4X Medical
screening) ;*1X
Educational Wellness(
Staff Motivational wellness
session
*5x Employee assistance
programme (1X Employee
satisfaction survey & 4X
referrals)
*2X Physical
wellness(Staff sporting
activity & Medical
screening)
*1X Employee
assistance
programme(referrals)
*1x physical
wellness (Medical
screening)
*1X Educational
wellness (Staff
Motivational
wellness session)
*1X Employee
assistance
programme (
referrals)
*1X Physical wellness
(Medical screening)
* 2X Employee
assistance
programme (Employee
satisfaction survey &
referrals)
*1Xphysical wellness *OHS officer
(Medical screening)
* 1X Employee
assistance
programme(referrals)
* develop and monitor
Employee wellness
programmes
To build a
disciplined or
organizational
culture by 2013
Review and
enforcement HR
policies
Equity
committee in
place
% development of
employment equity
plan
* 20% Re -establishment
of EEP committee;* 30%
Induction of the
committee;
20% - Development
of the EE plan; 10%
- Functionality of the
committee(Ability to
generate reports
and make
submission)
10% - Functionality of
the committee(Ability to
generate reports and
make submission)
10% - Functionality of
* HR
the committee(Ability to
generate reports and
make submission)
* Development and
R0.00
monitor implementation
of the EEP
Employment equity
plan and its
implementation
report
* list of beneficiaries
reflecting amount
given per learner and
institution paid;
* Career exibition
report and
attendence register
To ensure that
Bursaries
skills needed in the
mines are obtained
in the local by 2013
Bursary
# of Education related
awarded in
activities implemented
2011/12
financial year
100% development of
employment equity plan :*
20% Re -establishment of
EEP committee;* 30%
Induction of the committee;
*20% - Development of the
EE plan; 30% Functionality of the
committee(Ability to
generate reports and make
submission)
2 Education related
* Career exibition
activities implemented: *
Career exibition; * Awarding
of bursaries to need pupils
IDT
Labour Relations
To minimize
litigations by
implementing
Employee benefit
by 2013
LLF programs
IDT
% progress in lobby 100% progress in lobby for *20% Establish
* 20% Generate
for additional bursary additional bursary from the engagement team
progress report to
from the mines
mines
*20% Develop
management
engagement programme
*20% communicate the
to identified mines
Labour Relations
To minimize
litigations by
implementing
Employee benefit
by 2013
LLF programs
90% of LLF
% functionality of LLF 100% functionality of LLF
resolutions
*40% Holding monthly
implemented
meetings
* 20% Establishment Sub committees
*40% Implementation of
resolutions taken and report
100% % attendence to
conciliations
100% attendence to
conciliations: * 40%
preparation for the
concilliation; *40%
representation for the
concilliation called for;*
20% response to
concilliation demands
R400 000
* Awarding of bursaries
to need pupils
* Bursary
committee
* Applicants
* finance
* Run selection of
rightful canindates and
ensure their payment
* Make applications (
Applicants)
* make payment(
Finance)
* 20% Generate
progress report to
management
* Bursary
committee
* Generate engagement R0.00
programme( bursary
committee)
* Establish a lobby
team( bursary
committee)
* Engagement letters;
* Bursary report
* chairperson of
LLF
* Labour relation
officer
* convene the LLF
meeting(C/LLF)
* Take
minutes/resolutions in
LLF meetings and g
LLF resolutions
register and
implementation
report; List of sub committee members
meetings
* 20% Establishment Sub
- committees
resolutions taken and
report
*10% Holding
monthly meetings
*10%
Implementation of
resolutions taken
and report
meetings
report
meetings
report
100% attendence to
preparation for the
concilliation; *40%
20% response to
100% attendence to
preparation for the
concilliation; *40%
representation for
the concilliation
called for;* 20%
response to
concilliation
demands
100% attendence to
preparation for the
concilliation; *40%
20% response to
100% attendence to
* HR
preparation for the
concilliation; *40%
20% response to
R300 000
R0
* Ensure that
R0
conciliations and
arbitrations are attended
to
Conciliation &
Arbitration reports
Focus Areas
Objectives
GPP
WSP
To ensure
Capacity building
sufficient political program
championship and
accountability
GPP
Communication
To ensure that
GTM is portrayed
in ways that
restores trust in
local government
Web site updating done as per
pieces of
legislations
GPP
Public
participation
To improve social
cohesion in GTM
Special groups
IDT
HR
To build a
disciplined or
organizational
culture by 2013
Review and
enforcement HR
policies
Manual leave Turn around time in
management processing leave
system
applications
IDT
HR
To build a
disciplined or
organizational
culture by 2013
Review and
enforcement HR
policies
100% % compliance with
statutory/ bargaining
council regulations.
IDT
HR
To build a
disciplined or
organizational
culture by 2013
Review and
enforcement HR
policies
GPP
CORPORATE SERVICES
KPA
Projects
Baseline
KPI
Annual Target
IGR
To ensure that
GTM is portrayed
in ways that
restores trust in
local government
Intergovernment
relation
Q4
Enablers
Evidence
25% of
Councillors
capacitated
% Councillors
benefited from the
capacity building
program( training of
councillors)
100% of Councillors
25% of Councillors ( 15
benefited from the capacity councillors) benefited
building program
from the capacity building
program
50% of Councillors ( 75% of Councillors ( 45
30 councillors)
councillors) benefited
benefited from the
from the capacity
capacity building
building program
program
100% of Councillors (
62 councillors)
benefited from the
capacity building
program
* HR manager
* MM/Speaker
* Development of the
R400 000
capacity building
program for
councillors(HR
manager)
* Approve the
program(MM/Speaker)
* monitor & report on the
implementation of
capacity building
program(HR Manager)
Training report
Turnaround time in
website: 7 days for
adopted by Council
* 7 days for
Advertisement after
signed off by MM
Turnaround time in
loading information
on website: 7 days
for pasting HR
policies after
adopted by Council
* 7 days for
Advertisement after
signed off by MM
Turnaround time in
website: 7 days for
pasting HR policies
after adopted by
Council
* 7 days for
Advertisement after
signed off by MM
Turnaround time in
* secretariat
website: 7 days for
adopted by Council
* 7 days for
Advertisement after
signed off by MM
SITA for pesting at
website
Register of doucment
submitted to IT with
signature IT manager
for acknowledgement
100% functionality of the
Mayor’s special
programmes: *50% able to
meet as per their
programme;*50% able to
produce monthly and
quarterly reports
100% functionality of the
Mayor’s special
programmes: *50% able
to meet as per their
programme;*50% able to
produce monthly and
quarterly reports
the Mayor’s special
programmes: *50%
able to meet as per
their
programme;*50%
able to produce
monthly and
quarterly reports
programmes: *50%
able to meet as per
their programme;*50%
able to produce monthly
and quarterly reports
* manager of
office bearers
programmes: *50%
able to meet as per their
programme;*50% able
to produce monthly and
quarterly reports
* Ensure functionality of R805 000
the mayor's special
programme
Register of the
special programmes;
their programmes
and their report
Two(2) days turn around
time in processing leave
applications
Two(2) days
Two(2) days
Two(2) days
Two(2) days
* HR
* Monitor processing of
leave applications
R0
Leave Register
(indicates when the
leave form was
received and when it
was captured); Leave
file
statutory/ bargaining council statutory/ bargaining
regulations: 40% - legibility council regulations: 40% conditions; 30% legibility conditions; 30% compulsory elements; 30% - compulsory elements;
Excemption conditions
30% - Excemption
conditions
100% compliance
with statutory/
bargaining council
regulations: 40% legibility conditions;
30% - compulsory
elements; 30% Excemption
conditions
council regulations:
40% - legibility
conditions; 30% compulsory elements;
30% - Excemption
conditions
100% compliance with * HR
council regulations: 40%
- legibility conditions;
30% - compulsory
elements; 30% Excemption conditions
* Ensure compliance to
statutory/bargaining
council regulations
R242 000
Bargainining council
regulations
implementation
register .
12 monthly leave
recocilliation reports
generated in congruence to
Finance
3 monthly leave
generated in congruence
to Finance
3 monthly leave
generated in
congruence to
Finance
3 monthly leave
generated in
congruence to Finance
3 monthly leave
HR manager
generated in
congruence to Finance
* ensure the generation R0
of leave reconcilliation
report
Leave reconcilliation
reports
100% of management
meeting resolutions
attended to
100% of management
meeting resolutions
attended to
100% of
100% of management
management
meeting resolutions
meeting resolutions attended to
attended to
100% of management
meeting resolutions
attended to
* Secretariat
* generate resolutions
R0
during management
meetingand circulate to
departments
Register of
management
meeting resolutions
and implementation
report
attended to
* Resolution
committee
R0
and circulate to
departments for
implementation
Register of ExColekgotla resolutions
and their
Turnaround time in
Turnaround time in loading
loading information on information on website: 7
website
days for pesting HR policies
after adopted by Council
* 7 days for Advertisement
after signed off by MM
80% % functionality of the
Mayor’s special
programmes(Children
, Youth, Gender,
Disability,Elderly,Geo
graphic
names,HIV/AIDS,Mor
al regeneration)
6 # of leave
reconcilliation reports
generated in
congruence with
Finance
meeting resolutions
attended to
100% % of ExCo- makgotla 100% of ExCo- makgotla
resolutions attended resolutions attended to
to
Q1
Q2
Q3
100% of ExCo- makgotla 100% of ExCo100% of ExCoresolutions attended to
makgotla resolutions makgotla resolutions
attended to
attended to
R0
Focus Areas
Objectives
GPP
IGR
To ensure that
GTM is portrayed
in ways that
restores trust in
local government
Intergovernment
relation
GPP
CORPORATE SERVICES
KPA
Projects
Audit
To ensure clean
Audit by 2014
Internal Audit
Baseline
KPI
Annual Target
Q1
100% % of council
100% of council resolutions 100% of council
resolutions addresses addressed
resolutions addressed
50% % of internal audit unit 100% of internal audit unit
findings addressed
findings addressed
Risk and Fruad
awareness
Risk committee
recommendations
Risk committee
recommendations
80% % functionality of
MPAC
100% functionality of MPAC
* 50% Meet as per it
programme
* 50% Generate Quarterly ;
mid-year and Annaul
Oversight reports
programme
* 50% Generate
Quarterly oversight
reports
R57 394 449
R14,348,612
GPP
100% progress in
implementing 2011/12 AG
respond Action plan
and IGR
FVB
80% % progress in
implementing
2011/12 AG respond
Action plan
To ensure clean
Audit by 2014
Expenditure
To ensure clean
audit by 2014
Internal control
R23
,366,300
R-value spent on
Departmental
budget
Q3
Q4
Enablers
Evidence
100% of council
resolutions
addressed
100% of council
100% of council
* Secretariat
* Speaker
R0
during council sitting and
circulate to departments
for
implementation(Secreta
riat)
Speaker)
Register of council
100% of internal
audit unit findings
addressed
100% of internal audit 100% of internal audit
unit findings addressed unit findings addressed
*internal audit
unit
* audit and release
R0
findings to
correction
internal audit findings
and their responds
* generate findings
from the Corporate
services department
Risk management
committee
recommendation and
respond report
100% implementation of 100%
Risk committee
implementation of
recommendations
Risk committee
recommendations
External Audit
Audit
Q2
100% implementation
of Risk committee
recommendations
100% implementation of * Risk
Risk committee
management
recommendations
committee
R0.00
50% progress in
100%% progress in
* Finance
implementing 2011/12 implementing 2011/12
AG respond Action plan AG respond Action plan
* Issue out action plan R0
2011/2012 AG action
plan and
programme
* 50% Generate
Quarterly ; oversight
reports
programme
* 50% Generate
Quarterly ; mid-year
and Annaul Oversight
reports
MPAC
programme
* 50% Generate
Quarterly l Oversight
reports
* Secretariat
* Ensure that MPAC
meet and conduct
oversight to documents
submitted to them
R0
minutes and reports
R28,697,224
R43,045,836
R57 394 449
* finance
Allocate the funds to
Corporate Services
R57 394 449
Expenditure report
TECHNICAL SERVICES
Q1
Q2
Q3
Q4
Enablers
Enabler's activities
100% of faulty Traffic
lights(robots) &
streetlights fixed within
7 days
lights(robots) &
streetlights fixed
within 7 days
lights(robots) &
streetlights fixed within 7
days
Supply Chain
Management and MM;
Legal Services
Procurement of short
R3 400 000
term contracts for
repairs and maintenance
of Traffic lights(SCM);
Approval of short term
contracts (MM);
Compilation of SLA
(Legal) and approval by
MM
Streetlights and
traffic
lights(robots)
repair and
maintenance
reports
reflecting: Date
problem
identified &
progress to date
R0
term contracts for fixing
of roads and
bridges(SCM); Approval
of short term contracts
(MM); Compilation of
SLA (Legal) and
approval by MM
Road
Maintence
report reflecting:
when the
pothole was
identfied and
progress to date
BSD
Annual Target
Road and
Maintenance
To ensure cost
Maintenance of
effectie,efficient
infrastructure
and responsive
economic
infrastructure
network and asset
by 2017
14 days
% of faulty Traffic
lights(robots) &
lights(robots) & streetlights
streetlights fixed within fixed within 7 days
7 days
lights(robots) &
streetlights fixed within 7
days
BSD
KPI
Road and
Maintenance
To ensure cost
Maintenance of
effectie,efficient
infrastructure
and responsive
economic
infrastructure
network and asset
by 2017
14 days
% of identified
potholes pitched
within 7 days
100% of identified
potholes pitched within 7
days
100% of identified
100% of identified
100% of identified
potholes pitched within 7 potholes pitched within potholes pitched
days
7 days
within 7 days
BSD
Baseline
PMU
To improve
accessibility and
mobility of
transport by 2017
Public works program
100% progress in lobby
for additional public works
equipments from the
mines:
*20% Develop engagemet
document;
* 20% Establishment of
task team;
* 20% Develop
* 40% Engagement and
reports
for additional public
works equipments from
the mines:
*20% Develop
engagemet document;
* 20% Establishment of
task team programme
* 20% Develop
engagement
programme
for additional public
works equipments
from the mines:
* 40% Engagement
and reports
BSD
Projects
PMU
To improve
accessibility and
mobility of
transport by 2017
Internal roads upgrading
6km
450km
Total km of road
graded against total
km of gravel roads
100km
150km
BSD
Focus Areas Objectives
PMU
To improve
accessibility and
mobility of
transport by 2017
Internal roads upgrading
150km
# of emergency
requested and
responded to
GPP
KPA
Communication To ensure that
GTM is portrayed
in ways that
restores trust in
local government
Web site updating
done as per
pieces of
legislations
Turnaround time in
Turnaround time in
website
website: 7 days for pesting
HR policies after adopted
by Council
0% % progress lobby for
additional public
works equipments
from the mines
200
50
Turnaround time in
website: 7 days for
adopted by Council
* 7 days for
Advertisement after
signed off by MM
100% of identified
Supply Chain
potholes pitched within 7 Management and MM;
days
Legal Services
150km
50km
50
50
Turnaround time in
website: 7 days for
pasting HR policies
after adopted by
Council
* 7 days for
Advertisement after
signed off by MM
Turnaround time in
loading information
on website: 7 days
for pasting HR
policies after adopted
by Council
* 7 days for
Advertisement after
signed off by MM
Evidence
* Engagenment team
* Develop engagement
document and engage
the mines
R0
Engagement
report
Supply Chain
Management and MM;
Legal Services
R0
term contracts for
repairs and maintenance
of machinery and
equipments (SCM);
contracts (MM);
Compilation of SLA
(Legal) and approval by
MM
Road
maintenance
Report
Procurement of short R0
term contracts for
repairs and
maintenance of
machinery and
equipments (SCM);
contracts (MM);
Compilation of SLA
(Legal) and approval
by MM
Road
maintenance
Report
SITA for pesting at
website
Council
resolutions;
Register of
doucment
submitted to IT
with signature IT
manager for
acknowledgem
ent
50 Supply Chain
Management and
MM; Legal Services
Turnaround time in
website: 7 days for
adopted by Council
* 7 days for
Advertisement after
signed off by MM
Budget
* secretariat
* IT manager
R0
TECHNICAL SERVICES
GPP
KPA
Audit
To ensure clean
Audit by 2014
Projects
Internal Audit
Risk and Fruad
awareness
BSD
BSD
External Audit
PMU
PMU
Baseline
KPI
Annual Target
Q1
50% % of internal audit unit 100% of internal audit unit 100% of internal audit
findings addressed
findings addressed
Risk committee
recommendations
Risk committee
recommendations
Q2
Q3
100% of internal audit 100% of internal
unit findings
audit unit findings
addressed
addressed
100% implementation of 100% implementation 100%
Risk committee
of Risk committee
implementation of
recommendations
recommendations
Risk committee
recommendations
Q4
Enablers
*internal audit unit
* audit and release
R0
findings to
correction
internal audit
findings and
their responds
Risk committee
recommendations
* Risk management
committee
* generate findings
from the Corporate
services department
* Finance
Risk
management
committee
recommendatio
n and respond
report
2011/2012 AG
action plan and
R0.00
Evidence
80% % progress in
implementing
2011/12 AG respond
Action plan
100% progress in
respond Action plan
55% % progress
electrification of
Mafarafara village
45% progress
*40% Construction;
electrification of
5%close out
Mafarafara village : *40%
Construction; 5%close out
Supply Chain
Management Unit,
Municipal Manager's
Office; Legal Services;
Public Participation Unit
Submission and
finalisation of bid
committee reports as per
the implementation
schedule.(SCM);
Approval of bid reports
and signing of
appointment letters
SLA(Legal) and approval
by MM; Establishment of
PSC and Community
mobilisation (PPU)
Project
completion
certificate
Malepe electrification
program
55% % progress
electrification of
Malepe village
100% progress
*40% Construction;
electrification of Malepe
5%close out
village: *40%
Supply Chain
Management Unit,
Municipal Manager's
Submission and
finalisation of bid
the implementation
schedule.(SCM);
and signing of
appointment letters
PSC and Community
mobilisation (PPU)
Project
completion
certificate
To ensure
Moraba electrification
availability of bulk program
infrastructure for
the attraction of
new developemnts
by 2017
55% % progress
electrification of
Moraba village
100% progress
*40% Construction;
electrification of Moraba
5%close out
village : *40%
Supply Chain
Management Unit,
Municipal Manager's
Submission and
finalisation of bid
the implementation
schedule.(SCM);
and signing of
appointment letters
PSC and Community
mobilisation (PPU)
Project
completion
certificate
To ensure
Mafarafara electrification
infrastructure for
the attraction of
new developemnts
by 2017
50% progress in
100%% progress in
implementing
2011/12 AG respond AG respond Action plan
Action plan
Budget
TECHNICAL SERVICES
Projects
Baseline
KPI
Annual Target
Q1
Q2
Q3
Q4
Enablers
Budget
Evidence
BSD
PMU
To ensure
Motshana electrification
infrastructure for
the attraction of
new developemnts
by 2017
55% % progress
electrification of
Motshana village
100% :*40% Construction; *40% Construction;
5%close out
5%close out
Supply Chain
Management Unit,
Municipal Manager's
Submission and
finalisation of bid
the implementation
schedule.(SCM);
and signing of
appointment letters
PSC and Community
mobilisation (PPU)
Project
completion
certificate
BSD
KPA
PMU
To ensure
Mokgotho electrification
infrastructure for
the attraction of
new developemnts
by 2017
55% % progress
electrification of
Mokgotho village
100% progress
*40% Construction;
electrification of Mokgotho 5%close out
village: *40%
Supply Chain
Management Unit,
Municipal Manager's
Submission and
finalisation of bid
the implementation
schedule.(SCM);
and signing of
appointment letters
PSC and Community
mobilisation (PPU)
Project
completion
certificate
55% % progress
100% progress
*40% Construction;
electrification of
electrification of
5%close out
Maretlwaneng village Maretlwaneng
village:*40% Construction;
5%close out
Supply Chain
Management Unit,
Municipal Manager's
Submission and
finalisation of bid
the implementation
schedule.(SCM);
and signing of
appointment letters
PSC and Community
mobilisation (PPU)
Project
completion
certificate
40% % progress
electrification of
Mankele village
Supply Chain
Management Unit,
Municipal Manager's
Submission and
finalisation of bid
the implementation
schedule.(SCM);
and signing of
appointment letters
PSC and Community
mobilisation (PPU)
Project
completion
certificate
BSD
Maretlwaneng
electrification program
PMU
To ensure
Mankele electrification
infrastructure for
the attraction of
new developemnts
by 2017
100% progress
50% Construction;
electrification of Mankele 5%close out
village: 50% Construction;
5%close out
TECHNICAL SERVICES
Projects
PMU
To ensure
Mamogolo electrification
infrastructure for
the attraction of
new developemnts
by 2017
Job creation
self sustainable
livelihood by
2017
BSD
BSD
LED
KPA
Baseline
KPI
0% % progress
electrification of
Mamogolo village
EPWP program
0 # Job opportunities
BSD
BSD
PMU
Q1
Q2
Q3
Q4
100% progress
50% Construction;
electrification of
5%close out
Mamogolo village: 50%
100
100
0
0
9292
5777
5777
5777
Enablers
Supply Chain
Management Unit,
Municipal Manager's
Submission and
finalisation of bid
the implementation
schedule.(SCM);
and signing of
appointment letters
PSC and Community
mobilisation (PPU)
0 * SCM
created through
electrification projects
Electricity acceleration 9292
program
Beneficiaries
PMU
Annual Target
# of households
benefiting from FBE
programme
To ensure
Establishment of
availability of bulk Burgersfort Hawkers
infrastructure for
facilities
the attraction of
new developemnts
by 2017
To ensure
Praktiseer Hawkers
availability of bulk facilities
infrastructure for
the attraction of
new developemnts
by 2017
construction of
Burgersfort Hawkers
facilities
construction of
Praktiseer Hawkers
facilities
* appointment of
service providers
Budget
Evidence
Project
completion
certificate
R0
5777 CDW,Councillors and Facilitation,
R3 900 000
PPU; Finance;
Identification and
ESKOM
registration of
indigents;(CDW,CLLR
,PPU); Consolidation
of indigents register
(Finance);
Configuration of
beneficiaries(ESKOM)
Register of job
created
through
Electricity
projects
FBE
beneficiary
register
100% : 10% T.O.R
development;*5% site
hand over;* 10%
Generation of end user
department report; *60%
Construction; 10%close
out
* 10% T.O.R
development:* 10%
department report
*10% site hand over;*
60% Construction; *
10%close out
Supply Chain
Management Unit,
Municipal Manager's
Submission and
R400,000
finalisation of bid
the implementation
schedule.(SCM);
and signing of
appointment letters
PSC and Community
mobilisation (PPU)
Project
completion
certificate
100% : 10% T.O.R
hand over;* 10%
out
* 10% T.O.R
development:* 10%
department report
60% Construction; *
10%close out
Supply Chain
Management Unit,
Municipal Manager's
Submission and
R400,000
finalisation of bid
the implementation
schedule.(SCM);
and signing of
appointment letters
PSC and Community
mobilisation (PPU)
Project
completion
certificate
TECHNICAL SERVICES
BSD
Sport and
culture
LED
Job creation
BSD
Sport and
culture
LED
Projects
Job creation
BSD
Environment
Fencing of Cemetery
To create a
healthy
environment for
the community of
Tubatse by 2030
LED
KPA
Job creation
self sustainable
livelihood by
2017
To ensure
Mapodile Sport Complex
availability of bulk
infrastructure for
the attraction of
new developemnts
by 2017
self sustainable
livelihood by
2017
EPWP program
Baseline
KPI
construction of
Mapodile Sport
Complex
Annual Target
Q1
Q2
100% : 10% T.O.R
hand over;* 10%
out
* 10% T.O.R
development:* 10%
department report
60% Construction; *
10%close out
20
0
Q3
20
Q4
0
Enablers
Supply Chain
Management Unit,
Municipal Manager's
Submission and
R5,200,000
finalisation of bid
the implementation
schedule.(SCM);
and signing of
appointment letters
PSC and Community
mobilisation (PPU)
Project
completion
certificate
* appointment of
service providers
Register of job
created
through
construction
hawkers stalls
projects
0 * SCM
created through
Constrution Hawkes
stalls projects
To ensure
Ohrigstad Sport Complex
availability of bulk
infrastructure for
the attraction of
new developemnts
by 2017
self sustainable
livelihood by
2017
EPWP program
construction of
Ohrigstad Sport
Complex
100% : 10% T.O.R
hand over;* 10%
out
* 10% T.O.R
development:* 10%
department report
30
60% Construction; *
10%close out
0
30
Supply Chain
Management Unit,
Municipal Manager's
0
0 * SCM
created through sport
complex projects
EPWP program
100% : 10% T.O.R
fencing of Cemeteries development;*5% site
hand over;* 10%
out
created through fence
of cemeteries projects
30
* 10% T.O.R
development:* 10%
department report
60% Construction; *
10%close out
0
30
Supply Chain
Management Unit,
Municipal Manager's
0
0 * SCM
Budget
R0
Evidence
Submission and
R500,000
finalisation of bid
the implementation
schedule.(SCM);
and signing of
appointment letters
PSC and Community
mobilisation (PPU)
Project
completion
certificate
* appointment of
service providers
Register of job
created
through sport
complex
projects
R0
Submission and
R2,500,000
finalisation of bid
the implementation
schedule.(SCM);
and signing of
appointment letters
PSC and Community
mobilisation (PPU)
Project
completion
certificate
* appointment of
service providers
Register of job
created
through
fencing
cemetries
projects
R0
TECHNICAL SERVICES
BSD
Road and
Stormwater
To improve
accessibility and
mobility of
transport by 2017
Burgersfort Internal street
BSD
Road and
Stormwater
To improve
accessibility and
mobility of
transport by 2017
Ohrigstad internal street
BSD
Projects
Road and
Stormwater
To improve
accessibility and
mobility of
transport by 2017
Praktiseer internal street
LED
Job creation
self sustainable
livelihood by
2017
EPWP program
BSD
KPA
Road and
Stormwater
To improve
accessibility and
mobility of
transport by 2017
Alverton Access Bridge
Baseline
KPI
construction of
Burgersfort Internal
street
construction of
Ohrigstad Internal
street
construction of
Praktiseer internal
street
Annual Target
Q1
Q2
100% : 10% T.O.R
hand over;* 10%
out
* 10% T.O.R
development:* 10%
department report
100% : 10% T.O.R
hand over;* 10%
out
100% : 10% T.O.R
hand over;* 10%
out
Enablers
60% Construction; *
10%close out
Supply Chain
Management Unit,
Municipal Manager's
Submission and
R3,140,000
finalisation of bid
the implementation
schedule.(SCM);
and signing of
appointment letters
PSC and Community
mobilisation (PPU)
Project
completion
certificate
* 10% T.O.R
development:* 10%
department report
60% Construction; *
10%close out
Supply Chain
Management Unit,
Municipal Manager's
Submission and
R2,500,000
finalisation of bid
the implementation
schedule.(SCM);
and signing of
appointment letters
PSC and Community
mobilisation (PPU)
Project
completion
certificate
* 10% T.O.R
development:* 10%
department report
60% Construction; *
10%close out
Supply Chain
Management Unit,
Municipal Manager's
Submission and
R3,000,000
finalisation of bid
the implementation
schedule.(SCM);
and signing of
appointment letters
PSC and Community
mobilisation (PPU)
Project
completion
certificate
* appointment of
service providers
Register of job
created
through
Internal street
projects
30
0
Q3
30
Q4
0
0 * SCM
created through
Internal street
projects
construction of
Alverton Access
bridge
100% : 10% T.O.R
hand over;* 10%
out
* 10% T.O.R
development:* 10%
department report
60% Construction; *
10%close out
Supply Chain
Management Unit,
Municipal Manager's
Budget
R0
Submission and
R2,500,000
finalisation of bid
the implementation
schedule.(SCM);
and signing of
appointment letters
PSC and Community
mobilisation (PPU)
Evidence
Project
completion
certificate
TECHNICAL SERVICES
KPI
Annual Target
Q1
Q2
100% : 10% T.O.R
hand over;* 10%
out
* 10% T.O.R
development:* 10%
department report
100% : 10% T.O.R
construction of
Phiring Access Bridge hand over;* 10%
out
BSD
Baseline
Road and
Stormwater
To improve
accessibility and
mobility of
transport by 2017
Kampeng Access Bridge
BSD
Projects
Road and
Stormwater
To improve
accessibility and
mobility of
transport by 2017
Phiring Access Bridge
BSD
Road and
Stormwater
To improve
accessibility and
mobility of
transport by 2017
Mahlakwena Access
Bridge
BSD
KPA
Road and
Stormwater
To improve
accessibility and
mobility of
transport by 2017
Madifahlane Access
Bridge
construction of
Kampeng Access
Bridge
construction of
Mahlakwena Access
Bridge
construction of
Madifahlane Access
Bridge
Q3
Q4
Enablers
Budget
Evidence
60% Construction; *
10%close out
Supply Chain
Management Unit,
Municipal Manager's
Submission and
R2,900,000
finalisation of bid
the implementation
schedule.(SCM);
and signing of
appointment letters
PSC and Community
mobilisation (PPU)
Project
completion
certificate
* 10% T.O.R
development:* 10%
department report
60% Construction; *
10%close out
Supply Chain
Management Unit,
Municipal Manager's
Submission and
R3,800,000
finalisation of bid
the implementation
schedule.(SCM);
and signing of
appointment letters
PSC and Community
mobilisation (PPU)
Project
completion
certificate
100% : 10% T.O.R
hand over;* 10%
out
* 10% T.O.R
development:* 10%
department report
60% Construction; *
10%close out
Supply Chain
Management Unit,
Municipal Manager's
Submission and
R3,800,000
finalisation of bid
the implementation
schedule.(SCM);
and signing of
appointment letters
PSC and Community
mobilisation (PPU)
Project
completion
certificate
100% : 10% T.O.R
hand over;* 10%
out
* 10% T.O.R
development:* 10%
department report
60% Construction; *
10%close out
Supply Chain
Management Unit,
Municipal Manager's
Submission and
R3,800,000
finalisation of bid
the implementation
schedule.(SCM);
and signing of
appointment letters
PSC and Community
mobilisation (PPU)
Project
completion
certificate
TECHNICAL SERVICES
BSD
Road and
Stormwater
LED
Job creation
GPP
IGR
GPP
IGR
GPP
Projects
IGR
GPP
Communication To ensure that
GTM is portrayed
in ways that
restores trust in
local government
Web site updating
GPP
KPA
Audit
Internal Audit
Baseline
KPI
Annual Target
Q1
Q2
Q3
100% : 10% T.O.R
hand over;* 10%
out
* 10% T.O.R
development:* 10%
department report
60% Construction; *
10%close out
To improve
accessibility and
mobility of
transport by 2017
Thokwane/Shakung
Access Bridge
self sustainable
livelihood by
2017
EPWP program
To ensure that
GTM is portrayed
in ways that
restores trust in
local government
Intergovernmental
relation
meeting resolutions
implemented
To ensure that
GTM is portrayed
in ways that
restores trust in
local government
Intergovernmental
relation
100% % of ExCo- makgotla 100% of ExCo- makgotla
resolutions
implemented
100% of ExCo- makgotla 100% of ExCoresolutions implemented makgotla resolutions
implemented
To ensure that
GTM is portrayed
in ways that
restores trust in
local government
Intergovernmental
relation
100% % of council
resolutions
implemented
To ensure clean
Audit by 2014
construction of
Thokwane/Shakung
Access Bridge
70
0
70
Q4
0
Enablers
Supply Chain
Management Unit,
Municipal Manager's
Submission and
R6,400,000
finalisation of bid
the implementation
schedule.(SCM);
and signing of
appointment letters
PSC and Community
mobilisation (PPU)
Project
completion
certificate
* appointment of
service providers
Register of job
created
through
Access bridge
projects
0 * SCM
created through
Access bridge
projects
Risk and Fruad
awareness
External Audit
done as per
pieces of
legislations
100% of management
meeting resolutions
implemented
100% of council
Turnaround time in
Turnaround time in
website
website: 7 days for pesting
HR policies after adopted
by Council
100% of management
meeting resolutions
implemented
Register of
management
meeting
resolution
100% of ExCo100% of ExCo- makgotla * Resolution committee
makgotla resolutions resolutions implemented
implemented
and circulate to
departments for
implementation
100% of council
100% of council
resolutions implemented resolutions
implemented
100% of council
resolutions
implemented
100% of council
* Secretariat
resolutions implemented * Speaker
Turnaround time in
website: 7 days for
adopted by Council
* 7 days for
Advertisement after
signed off by MM
Turnaround time in
loading information
on website: 7 days
for pasting HR
policies after adopted
by Council
* 7 days for
Advertisement after
signed off by MM
Turnaround time in
website: 7 days for
adopted by Council
* 7 days for
Advertisement after
signed off by MM
* secretariat
* IT manager
R0
during council sitting and
circulate to departments
for
implementation(Secretar
iat)
Speaker)
R0
SITA for pesting at
website
Register of
ExCo- lekgotla
resolutions and
their
implemetation
report
Register of
council
resolutions and
their
implemetation
report
*internal audit unit
Risk committee
recommendations
80% % progress in
implementing
2011/12 AG respond
Action plan
Risk committee
recommendations
Risk committee
recommendations
* Risk management
committee
100% progress in
respond Action plan
Turnaround time in
website: 7 days for
pasting HR policies
after adopted by
Council
* 7 days for
Advertisement after
signed off by MM
100% of internal audit 100% of internal
unit findings
audit unit findings
addressed
addressed
100% implementation of 100% implementation 100%
Risk committee
of Risk committee
implementation of
recommendations
recommendations
Risk committee
recommendations
100% of management
meeting resolutions
implemented
50% progress in
100%% progress in
implementing
2011/12 AG respond AG respond Action plan
Action plan
* secretariat
R0
Evidence
R0
during management
meeting and circulate to
departments
50% % of internal audit unit 100% of internal audit unit 100% of internal audit
findings addressed
findings addressed
100% of management 100% of
meeting resolutions
management
implemented
meeting resolutions
implemented
Budget
* Finance
R0
* audit and release
R0
findings to
correction
* generate findings
R0.00
from the Corporate
services department
Council
resolutions;
Register of
doucment
submitted to IT
with signature IT
manager for
acknowledgem
ent
internal audit
findings and
their responds
Risk
management
committee
recommendatio
n and respond
report
2011/2012 AG
action plan and
Detailed Capital Works Plan p
Project Name
ward(s)
1. Burgersfort Internal Street
2. Ohrigstad internal Street
2012/13Budg Start Date End Date
Sep'2012
et
18 R3.14m
01 Jul 12
30 Jun 13 R3.14m
1 R2.5m
01 Jul 12
30 Jun 13 R2.5m
3 . Praktiseer internal street
13 R3m
01 Jul 12
30 Jun 13 R3m
4. Alverton Access Bridge
20 R2.5m
01 Jul 12
30 Jun 13 R2.5m
5. Kampeng Access Bridge
6. Phiring Access Bridge
7. Mahlakwena Access bridge
7 R2.9m
26 R3m
2 R3.8m
01 Jul 12
01 Jul 12
01 Jul 12
30 Jun 13 R2.9m
30 Jun 13 R3m
30 Jun 13 R3.8m
8. Madifahlane Access bridge
15 R3.8m
01 Jul 12
30 Jun 13 R3.8m
9. Thokwane/Shakung Access
Bridge
10. Mapodile Sport Complex
16 R6.4m
01 Jul 12
30 Jun 13 R6.4m
2 R5.2m
01 Jul 12
30 Jun 13 R5.2m
18 500k
R2.5m
18 400k
01 Jul 12
01 Jul 12
01 Jul 12
30 Jun 13 500k
30 Jun 13 R2.5m
30 Jun 13 400k
13 400k
01 Jul 12
30 Jun 13 400k
23
23
16
16
16
R520k
R2.86m
R1.43m
R910k
R3.9m
01 Jul 12
01 Jul 12
01 Jul 12
01 Jul 12
01 Jul 12
30 Jun 13
30 Jun 13
30 Jun 13
30 Jun 13
30 Jun 13
16 R4.55m
01 Jul 12
30 Jun 13 R4.55m
16 R2.86m
01 Jul 12
30 Jun 13 R2.86m
16 R1.69m
01 Jul 12
30 Jun 13 R1.69m
16 R1.08m
01 Jul 12
30 Jun 13 R1.08m
01 Jul 12
30 Jun 13 R3.5m
01 Jul 12
30 Jun 13 R50k
11. Burgersfort Stadium
12. Fencing of cementries
13. Burgesfort Hawker facilite
10 wards
14. Praktiseer Hawkers facilita
ELECTRIFICATION PROJECTS
12.Maahlshi Electricity
13.Mafarafar Electrification
14.Electrification of Malepe
15.Electrification of Moraba
16. Electrification of Motshana
Village
17.Electrification of GaMokgotho Village
18. Electrification of
Maretlwaneng village
19. Electrification of Mankele
Village
20. Electrification of Mamogolo
Village
21.Fencing of rural Cemeteries 1 to 31
22. Establishment of Praktiseer
2nd emetery
Total
R3.5m
13 R50k
R54,350,000
R520k
R2.86m
R1.43m
R910k
R3.9m
R54,350,000
orks Plan per Ward
Dec'2012
March'2013
June'2013
2013/2014
2014/2015
R5m
R7m
R3.5m
R4.5m
R6m
R10m
R1m
R1.5m
BUDGET
Assumptions
1
Index
Section
Page
1. Purpose of the Report
2
2. Legal Requirements
2
3. Strategic Focus Areas and Municipal Priority Issues 2-3
4. Executive Summary on the Budgets
Operating Budget
Revenue Budget
Grants and Subsidies
Assessment Rates
Refuse Removal
Other Revenue
Expenditure Budget
Salaries and Wages
General Expenses
Contracted Services
Repairs and Maintenance
Property Plant Equipment
Capital Budget
3
4
4
5
5
5
6
6
7
7-8
8
8
8
8-10
5. Financial Strategy
9-14
6. Measurable performance objective and indicators
14
7. Overview of Budget policies
14-15
8. Allocation per “Votes”
9. Conclusion
15-16
16
2
GREATER TUBATSE MUNICIPALITY - DRAFT BUDGET REPORT
1. PURPOSE OF THE REPORT
The purpose of this report is to inform Council on the principles followed in the
compilation of the 2012/2013 – 2014/2015 budget. It pays attention to national call
of infrastructure investment initiative by government department which include
municipalities and other agencies of government. As local municipality it is faced
with challenges of non-delivery especially in relation to water and electricity the
national call made by the president encourage municipalities to invest on
infrastructure we hope our district municipality will also look in to the issues of water
infrastructure improvement
2. LEGAL REQUIREMENTS
A comprehensive discussion of the budget process can be read in Chapter 4 of the
MFMA.
The report has been compiled in accordance with the Local Government: Municipal
Finance Management Act (MFMA), Act no 56 of 2003 and National Treasury
Circulars as set out below.






MFMA Circular No 42 dated 30 March 2007 – Funding a Municipal Budget
MFMA Gazette No 31804 dated 23 January 2009- The Municipal Budget and
Reporting Regulation
MFMA Circular no 48 dated 02 March 2009 – municipal budget
MFMA Circular no 51
MFMA Circular no 58
MFMA Circular no 59
3. STRATEGIC FOCUS AREAS AND MUNICIPAL PRIORITY ISSUES
Municipal budgets must reflect policy priorities determined by Councillors who are
the representatives of the community. It is essential that the Municipality by means
of the IDP planning process identify the strategic focus areas and prioritise strategic
issues.
The focus will mainly look at the context of economic crisis which we need to invest
in the following
Revenue management – To ensure the collection of revenues, municipalities need
to ensure that billing systems are accurate, send out accounts to residents and
follow up to collect revenues owed.
3
Collecting outstanding debts – This requires political commitment, sufficient
administrative capacity, and pricing policies that ensure that bills are accurate and
affordable, especially for poor households.
Pricing services correctly – The full cost of services should be reflected in the
price charged to residents who can afford to pay. Many municipalities offer overly
generous subsidies and rebates that result in services being run at a loss, resulting
in funds being diverted away from other priorities.
Underspending on repairs and maintenance – Often seen as a way to reduce
spending in the short term, underspending on maintenance can shorten the life of
assets, increase long-term maintenance and refurbishment costs, and cause a
deterioration in the reliability of services.
Spending on non-priorities – Many municipalities spend significant amounts on
non-priority items including unnecessary travel, luxury furnishings, excessive
catering and unwarranted public relations projects. Consultants are often used to
perform routine tasks.
For the 2012/13 Draft Budget the municipality needs to fucus on key arrears which
forms part of our IDP strategy such as the following:
Municipalities should not just employ more people without any reference to the level
of staffing required to deliver effective services, and what is financially sustainable
over the medium term. The municipality ought to focus on maximizing its
contribution to job creation by:
 Ensuring that service delivery and capital projects use labour intensive
methods wherever appropriate;

Ensuring that service providers use labour intensive approaches;

Supporting labour intensive LED projects;

Participating fully in the Extended Public Works Programme; and

Implementing interns programmes to provide young people with on-the-job
training.
Municipalities also play a critical role in creating an enabling environment for
investments and other activities that lead to job creation. In this regard, it is
important for municipalities to pay particular attention to ensuring the timely delivery
of their capital programmes (eliminate under-spending of capital budgets) and to
review all by-laws and development approval processes with a view to removing
any regulatory bottlenecks to investment and job creation.
4. Executive summary on the budget
The annual budget tabled by Council must be in the format outlined in National
Treasury Gazzete no3814:-
4





A balanced operating budget containing expenditure details and realistically
anticipated revenue (actual revenue collected matches actual expenditure
incurred);
A balanced budget for capital expenditure that is within realistic funding already
secured, together with the projected future financial implications of such capital
expenditure;
Details of borrowing intentions and other liabilities that will increase the
Municipality‟s debt;
Audited actual results for the previous year; and
Projected budget outcomes for the current financial year, the next year‟s budget
and the outer two years.
The budget of the Council consists of the operational budget (revenue and
expenditure) and the capital budget. The budget must, within the available
resources, reflect the Council‟s IDP and how it will be funded. National Treasury
guidelines require that Councils provide at least a three-year operating and capital
budget.
In terms of the National Medium-Term Budget it is important to note the predicted
trends in the CPIX as set out below.
Inflation Forecast (CPIX)
2010/11
3.8%
2011/12
5.7%
2012/13
5.9%
2013/14
5.3%
2014/15
4.9%
OPERATING BUDGET
The operational budget is the financial plan which Council uses to effect sustainable
service delivery within the guidelines of the Council and in terms of affordability. The
operational budget also serves as a comprehensive detailed statement in which the
municipality shows how much it intends to spend on the rendering of each service
during a particular financial year.
In order to facilitate control over revenue and expenditure the development of the
budget will be undertaken using the following divisions:



Departments; Vote and sub votes
Revenue and Expenditure categories; and sources
Revenue and Expenditure line items.
Revenue and expenditure charts
It is of the utmost importance that Council ensures an in depth review of its revenue
budget and the goals for each category on an annual basis and that the level of
spending is limited by the availability of revenue.
Therefore, when the expenditure budget is compiled the ability of the consumers to
pay must always be taken into consideration. New operations and expansion of
5
operations on the operating budget should therefore be motivated to Council before
inclusion in the operating budget. Such operations must be included in departmental
operational plans taking into consideration issue identified in the turnaround
strategy.
The expenditure should also take into effect issues raised by the Auditor General
during the 2010/11 audit which is informed by the action plan in addressing those
issues.
Revenue Budget
The Council must determine what the total realistic revenue for the Municipality in
the new financial year will be. Using actual levied revenue for the first six months of
the current financial year and projecting these figures up to the end of the current
financial year will determine such possible revenue. This calculation must further be
based on realistic and affordable tariff increases as well as any expansion of the
revenue base.
It is the policy of Council to avoid major price increases for services as it has the
negative impact of reducing consumers‟ disposable income. However, to be able to
provide services and fulfil its responsibilities the Municipality will have to obtain
additional revenue from tariff increases on the various services provided as well as
assessment rates.
It is proposed that a general tariff increase equal to not more than the consumer
price index on average is implemented. However the over-riding consideration must
be the financial position of the Municipality. In determining the level of revenue and
proposed changes to tariffs the amount of possible bad debt must also be
determined and fully provided for and the income that cannot be realised (eg
income forgone).
Details of any expansion to the revenue base must be recorded timeously. The
revenue of the Council is derived from several sources. For budgeting purposes the
revenue from the various sources is set out below with a total revenue budget of
R220 million which include Grants from national.
Grants and Subsidies
This item consists of inter-governmental contributions in the form of the equitable
share, municipal infrastructure grant, finance management grant, municipal
systems improvement grant, electrification grant, neighbourhood development
grant and others provincial and district grant as may be determined from time-totime.
Assessment Rates
Assessment rates are levied on the market value of property in accordance with
the Local Government: Municipal Property Rates Act. however, as the current
tariff was on the valuation which will be coming to their last year. We envisaged
to increase our yearly projection in 2012/13on a reasonable rates which will be
based on inflation.
6
Categories Ratio in relation to residential property
Residential property
Agricultural property
Public service infrastructure property
Public benefit organization property
1:1
1:0.25
1:0.25
1:0.25
Refuse Removal
Refuse removal as an economic service should be operated to at least a point of
break even. As council have embarked on a PPP study which is at final stage
and the preferred bidder has already being appointed and will commence with
the service by the 1st July 2012 and we hope to maximise profit on the service as
compared to previous years based on the methodology the private part have put
on the table and the service require the municipality to contribute almost a
amount of R16.8 million as unitary fee to ensure the private partner perform
according to the agreed terms.
The financial analysis model the private partner submitted to council reflect an
increase in revenue stream of this services which will improve the sustainability
of the municipality financially and council should ensure that the monitoring of the
private partner is strengthened for purpose of the public.
Water and sewerage
In respect of water and sanitation that is rendered on an agency basis no
provision is currently made in the current Service Level Agreement between the
Greater Tubatse Local Municipality and Greater Sekhukhune District Municipality.
The rendering of the said service has been transferred to the district. The
municipality in their budget reflects on the agency commission in the budget as
GRAP 24 requires only budget that are related to the entity to be reflected in their
books as such.
Other revenue
Other revenue consist of minor revenue such as building plan fee, licence fee,
interest on outstanding deposits, town planning fees, traffic fines, library fees,
reconnection fees and penalties
7
Expenditure Budget
The expenditure framework must be based on the strategic plans/ IDP, the service
delivery and budget implementation plans, turnaround strategy and the revenue
framework.
Where possible, the zero-based budgeting technique is applied to categories of
expenditure. This will ensure that an in-depth review of revenue, expenditure and
the targets for each category is undertaken during the budget process, resulting in a
credible three-year budget, not merely based on an incremental approach. The
zero-based type of analysis where all activities are open to review at budget time
also allows an opportunity to reallocate resources and to avoid continuous growth in
budgeted expenditure.
The following elements have a major impact on the formulation of the expenditure
budget:








Employee remuneration
Councillors remuneration
General Expenditure
Repairs and maintenance;
Contracted services
Interest and redemption requirements to service borrowings;
Leasing of assets
Contributions from the operating budget for capital expenditure; and
Contribution to provisions
The expenditure budget consists of operating service delivery items and provides
for the following and the total budget of R 220 million
Salaries and Wages – Employee Related Costs
Salaries and wages consist of all remuneration in cash and in kind to employees
in return for work performed. This includes allowances and other benefits paid as
part of conditions of employment. Employer contributions into a pension fund are
an example of a social contribution. Another example is contributions to a
medical aid scheme.
It does not include costs of training courses (shown under General Expenses)
and costs of contractors. However, the costs relating to contractors who are
engaged under the Municipality‟s basic conditions of service are included – these
are essentially employees on fixed term contracts such as Section 57
appointments. The remuneration of Councillors, including full-time Councillors, is
also not included in this category as they are not employees of the Municipality.
The proposed increase for the 2012/2013 financial year is 5%.
After consideration of the Organizational reengineering process which was tabled
with the budget on consideration of a full structure the process was not complete
and only critical position where earmarked and budgeted for.
8
The costing of the proposed structure was made for council to exploit proper
decision which will be informed financial and also liaising with strategic planning
vision of the 2030 as proposed
For the two outer years the proposed increase is 5% per annum unless otherwise
there will be changes in the bargaining council negotiation


Councillor Allowances: All the costs associated with the remuneration of
Councillors, including their allowances and any other benefits paid, must be
disclosed in this section as a separate expense. For the 2012/2013 budget
year and the two outer years the possible increase provided for is 5% per
annum unless otherwise changed by the Parliament.
Ward committee: The allocation also is made to take care of the ward
committee programmes within the local municipality
General Expenses
This section must include all expenses that will be necessary for the Municipality
to carry out operations or activities that are not classified under one of the other
expenditure groups. Set out below are some of the common general expenditure
items.

Provision for Doubtful Debts: This is the value of monies unable to be
recovered. Each year an estimate should be made of the expected write-off
value to be included in this item of the budget. Actual debt written off is an
expense to the municipality.
 Refuse.
 Property Rates.

Interest on External Borrowings: Loan redemption payments have been
provided for in order to service the loan that council has approved in the
financial year 2007/2008 and continued with projects of 2008/09 and the
loan made was for 20 years which include the historical loans which are left
merely with few years remaining.
For the 2012/2013 budget year there is intention or any form of borrowing
by council to finance the purchase of the municipal civic centre building and
this process will unfold in a normal process in terms of MFM section 42
therefor until such process are managed and properly approved a further
change in the budged may be realised. Currently the proposed amount is
not taken care of in the 2012/13 proposed budget due to those process
which are not met yet
Contracted services
Provision has been made for services providers who are currently
contracted to the municipality to render certain services for which the
9
municipality have got no/less capacity to run them efficiently and
effectively.
Repairs and Maintenance
Expenditure that maintains an asset in good working order, to ensure asset
performance and the useful life originally expected, is not capital and must be
shown under this item. “Total Asset Management” requires that a schedule of
programmed maintenance should be developed for all assets of the municipality.
This ensures that the asset maintains optimal performance and the municipality
obtains maximum flow of economic benefits from employment of the asset over
its optimum life.
PROPERTY PLANT AND EQUIPMENT
To maintain institutional arrangement looking into issues of assets that needs to
be acquired like office furniture and vehicle which is made to provide resources
to administration in order to ensure that their is a smooth running of the
organisation
CAPITAL BUDGET
The importance of increasing the local content of capital expenditure cannot be
under estimated as the allocation is a function and driver of service delivery to
the community. However, based on the Municipalities current financial position
any contribution to capital from local revenue will be minimal over the next three
years.
And amount of R50million has been allocated for capital project which are
detailed in content and Schedule A-budget Schedules which the sheet read
schedule A5 Capital expenditure by GFS and it is attached for further references
and approval. The R8 million allocated to electrification will be regarded as
normal expenditure as council does not have licence to provide electricity and the
said assets will be donated to Eskom after completion for further repairs and
maintenance and also billing and collection lies with Eskom. The allocation is
made to finish the projects that are currently running.
The municipality is currently engaged on a process of electricity acceleration
project which will ensure that the council meet the 2014 millennium goals
Municipality will also encourage the service provider to at least use labour
intensive methods approach.
See table A5 Capex for allocation.
10
CAPITAL PROJECTS
Project
Roads and Access Bridges
Burgersfort Internal Streets
Ohrigstad Internal Streets
Praktiseer Internal Streets
Alverton Access Bridge
Kampeng Access Bridge
Phiring Access Bridge
Mahlakwena Access Bridge
Madifahlane Access Bridge
Thokwane/Shakung Access Bridge
Tsatsapane Access Bridge
Modubeng Access Bridge
Pidima/Maakubu Access Bridge
Ga-Maphopha Access Bridge
Kgautswane Access Bridge
Ga-Motshana Access Bridge
Mpuru Access Bridge
Madithongwana Access Bridge
Diphala/Makhwaya Access Bridge
Ga-Malepe Access Bridge
Leboeng Access Bridge
Habeng Access Bridge
Mabocha Access Bridge
Leboeng Access Bridge
Sports Facilities
Mapodile sports complex
Burgersfort Stadium
Ngwaabe sport complex
Ohrigstad Sport Complex
Praktiseer Sport Complex
Driekop Sport Complex
Funding
source
2012 - 2013
2013 - 2014
Budget
42 048 571
44 361 905
MIG
MIG
MIG
MIG
MIG
MIG
MIG
MIG
MIG
MIG
MIG
MIG
MIG
MIG
MIG
MIG
MIG
MIG
MIG
MIG
MIG
MIG
MIG
3 140 000
2 500 000
3 000 000
2 500 000
2 900 000
3 000 000
3 800 000
3 800 000
6 400 000
5 000 000
Other Public Facilities
Burgersfort Hawkers Facilities
Praktiseer Hawkers Facilities
Burgersfort Landfill Site & Closure Permit
Development of Arts and Culture Centre
Establishment of Burgersfort Testing Station
Upgrading of Steelpoort Road Worthy Centre
Summary of funding
MIG Funding
NDPG
Department of energy
Assets from Grants & Subsudy
Assets from Own fundings
Total Capital Budget (according to IDP)
5 000 000
3 800 000
3 800 000
5 400 000
5 400 000
3 800 000
36 200 000
33 500 000
38 600 000
5 200 000
500 000
6 000 000
1 000 000
500 000
10 000 000
1 500 000
500 000
3 000 000
7 500 000
15 000 000
2 500 000
1 000 000
4 000 000
1 000 000
500 000
9 000 000
500 000
500 000
2 000 000
2 000 000
1 500 000
1 500 000
2 000 000
2 000 000
2 000 000
2 000 000
MIG
MIG
MIG
2 500 000
2 500 000
MIG
MIG
MIG
MIG
MIG
MIG
GTM
9 000 000
31 040 000
MIG
MIG
MIG
MIG
MIG
MIG
MIG
NDPG
DoE
7 000 000
3 500 000
4 500 000
2016 - 2017
5 400 000
6 400 000
6 400 000
5 400 000
Cemeteries
Establishment of Burgersfort cemetery
Tubatse Fencing of Rural Cemeteries
2015 - 2016
3 800 000
3 800 000
5 400 000
6 400 000
5 600 000
5 700 000
Liabraries
Refurbishment of Burgersfort library
3 500 000
2014 - 2015
400 000
400 000
2 000 000
-
2 500 000
3 500 000
400 000
1 000 000
1 000 000
5 500 000
2 800 000
2 900 000
42 040 000
500 000
8 000 000
50 540 000
50 540 000
44 400 000
11
44 400 000
44 400 000
-
-
2 000 000
7 000 000
2 000 000
1 500 000
12 500 000
-
-
1 000 000
1 600 000
2 000 000
2 600 000
2 000 000
-
-
Our intention on majority of our capital projects is to provide lobour intensive
mechanism which addresses what the President have mention in the state of
nation address that government need to create job opportunities although we
knew that it is of a shorter period where our communities will benefit.
5.
FINANCIAL STRATEGY
The purpose of the financial strategy is to identify and recognise the financial
resources (revenue envelope) available for capital and operational expenditure
and includes revenue strategies, operational expenditure strategies and capital
financing strategies.
The operating budget must always be balanced, to ensure that operating
expenditure does not exceed realistically anticipated revenue. To avoid a shortfall
Council should ensure the following:-
Remuneration already constitutes a substantial percentage of the total
operating budget. It should be noted that further increases may have an
adverse impact on service delivery and consequential affordability for the
residents of Greater Tubatse Municipality.
The ratio of personnel expenditure to operating expenditure

Is there a prescribed or recommended benchmark for the ratio of personnel expenditure
to operating expenditure? The short answer is: no.
The ratio of personnel expenditure to operating expenditure is widely used as an
indicator of the sustainability of municipal budgets and expenditures. This raises
important questions of exactly how the ratio should be interpreted and whether National
Treasury should set a benchmark for purposes of assessing the sustainability of
municipal finances.
First, on the issue of interpreting the ratio, one needs to be aware of the factors that can
influence it. These include:
 The nature of the functions allocated to the municipality and types and extent of
services it delivers;
 The municipality‟s organisational structure, particularly the ratio of management
to technical and unskilled employees;
 The labour intensity of the municipality‟s operations versus the extent of
mechanization;
 The extent to which the municipality has outsourced the more labour intensive
components of its operations; and
 The composition of the non-personnel components of operating expenditure,
particularly trends in expenditure on maintenance and payments for bulk water
and electricity services.
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Second, on the issue of setting a benchmark, it is clear that the interpretation of the ratio
is specific to the context of each municipality. It would therefore be inappropriate for
National Treasury to set a specific benchmark, consequently there is NO benchmark.
Nevertheless, should the ratio for a municipality be significantly above or below the
averageratio for its peers (municipalities of similar size and functional responsibility) or if
the ratio for a municipality move upward or downward, it should be treated as a warning
signal and should trigger an enquiry into the factors that are driving the ratio in a
particular direction.
It is after all these underlying factors that may be threatening the financial sustainability
of the municipality and not the ratio itself.
Currently, among municipalities with the electricity function, this ratio is tending to move
downward despite fairly large increases in personnel spending. This is because
spending on bulk electricity purchases is increasing at a very fast rate, driving the
relative share of all other expenditure categories down. In such instances the ratio tells
one very little about the appropriateness of a municipality‟s level of expenditure on
personnel relative to the overall operating budget.
General expenses should be managed from a perspective of all activities being
continuously justified in terms of their outcomes and performance goals and whether
they continue to be consistent with the Council‟s strategic priority targets as outlined in
the Integrated Development Plan.
Departments should indicate their needs to maintain the assets of the Municipality in
their repair and maintenance master plans. Departments must also indicate in their
maintenance plans any deferred maintenance. The current allocation for Repairs and
Maintenance in the 2010/11 proposed budget should be seen as the first step in
addressing the backlog that exists on infrastructure maintenance and this level of
spending should as a minimum be maintained for the two outer years.

The provision for doubtful debts must be increased to a level that reflects the
amount of uncollectible debts in the books of the municipality.
An extract from section 18 of the MFMA reads as follow:
An annual budget may only be funded from(a)
(b)
(c)
realistically anticipated revenue to be collected;
cash-backed accumulated funds from previous year’s surpluses not
committed for other purposes; and
borrowed funds, but only for the capital budget referred to in section
17(2).
Revenue projections in the budget must be realistic, taking into account(a)
(b)
projected revenue for the current year based on collection levels to
date; and
actual revenue collected in previous financial years.
13
It is therefore of utmost importance that credit control be enforced vigorously to
avoid potential cash flow problems. The current provision for working capital
should be made on the basis of the payment levels for the first six months of
the current financial year.
The identification of non-core functions and the possibility of phasing them out
should be considered on a continuous basis.
6. MEASUREBLA PERFORMANCE OBJECTIVE AND INDICATORS
The objective set out in the strategic plan which is incorporated in the IDP which
informed the budget on what the municipality wants to achieve are also the basiss
of how the budget was prepared. The IDP will also show the following as part of the
measures
Revenue and expenditure by source
Revenue and expenditure by Vote
Capital by vote and sources
This allocation can be found in the budget formed attached to the report which is
from the following tables.
(a) Table A1 Budget Summary
(b) Table A2 Budget Financial Performance( revenue and expenditure by
standard classification)
(c) Table A3 Budget Financial Performance (revenue and expenditure by
municipal vote)
(d) Table A4 Budget Financial Performance (revenue and expenditure)
(e) Table A5 Budgeted capital Expenditure by vote standards classification
and funding
(f) Table A6 Budget financial position
(g) Table A7 Budgeted Cashfolw
(h) Table A8 cashbacked reserve/accumulated surplus reconciliation
(i) Table A9 Asset management
(j) Table A10 Basic service delivary
7. Overview of Budget Policies
The following policies will be tabled with the draft budget as it gives guidance on
how to utilise the budget and what the consumers should be aware of and the
policies will be available in the municipality offices including all the satellite offices
and also the libraries:
(a) Indigent Policy
(b) Property Rates Policy
(c) Credit Control and Debts Collection.
(d) Write off policy
(e) Investment policy
(f) Water tariff policy from the district as we render the function on agency basis
therefore the authority need to set up tariff and gives guidelines.
14
8. Allocation per municipal “Votes”
“Vote” 1: Corporate and Council
Allocation of this vote take into effect the remuneration of councillors
amongst other look into issues of public participation, employee related
cost within the vote.
It also look into issues of ward committee management as mandated by
legislation and further carter other mayoral special projects which are the:
 Children Programmes
 Youth programmes
 Disability
 Gender
 Elderly
 Geographic Name Changes
 HIV/AIDS
 Moral regeneration Movement
Communication and advertisement process are also committed within this
vote, training of councillors is allocated.
The vote also committed some allocation of the office of municipal
manager which looks among other the following
 Risk management and control
 Internal Audit
 Audit committees
Allocation of vote reflect an amount of which is earmarked for personnel
and include other issues patterning to performance management systems,
exco-lekgotla improvement of pour SDBIPs and management reviews
process.
A further commitment is the review and preparation of our Integrated
development plan and consultative process as required by legislation.
The vote allocation also take into consideration training of staff, legal
function that the municipality come across. Our labour relations unit reside
within this vote
„Vote” 2: Budget and Treasury Officer
The vote look at issue patterning to Valuation Roll which needs to be done
in the coming financial year as required by legislation that for a
municipality to provide the property rate service it needs to ensure that in
every four years they update their valuation roll.
Other allocation made is to take care of indigent household, external audit
fees, implementation of finance management grant which require
municipality to appoint interns
15
Issues relating to professional services which carter some it related issues
which is sourced out and also allocation of this vote also look into issues
like provision for bad debts, income forgone, commission on debt
collection.
“Vote‟‟ 3: Technical services
This vote looks specifically on issue patterning to service delivery aspects
of the municipality which involves the following
 Repairs and maintenance of street light, robots and Roads.
 Other allocation is for the rental of the municipal civic centre and
also maintenance of those building
 The service delivery vote perform also the function of capital budget
which is detailed in budget table
“Vote” 4: Community Services
Allocation made within this vote will be for protection services which look
into issues of roads safety and traffic and licensing. The vote looks into
issues of social development which include libraries, hiv/aids coordination
and cemetery and parks maintenance.
“Vote” 5: Economic and land Development
The allocation to this vote is earmarked to acquire additional data for the
municipality geographic information system and further finalisation of
township establishment within the Tubatse A township.
Commitment made also for the city development strategy and further
acquiring of a professional land surveyor for the relocation of beacons and
resolution of boundaries dispute in townships.
Support on poverty alleviation programmes and projects in order to
strengthen our LED initiatives as approved by council in the LED strategy.
Improvement of our LED forums and other stakeholders relation.
9. CONCLUSION


The draft budget will be submitted to both provincial and national treasury
including the department of local government and housing
As a draft budget consultative process will follow based on the time table set
on community participation processes changes may be made in the final
budget that will be approved during may 2012
16

2013-13 BUDGET - Greater Tubatse Municipality

Transcription

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