AMATHOLE DISTRICT MUNICIPALITY 2015 16 DRAFT INTEGRATED DEVELOPMENT PLAN

AMATHOLE DISTRICT MUNICIPALITY 2015/16 DRAFT INTEGRATED DEVELOPMENT PLAN & BUDGET

Background • ADM developed its 5 -year strategic plan linked to the term of Council in 2011 (2012 -2017 IDP) • The Plan was reviewed in 13/14 and 14/15 financial years • The 15/16 Draft IDP marks the 3 rd review of our 5 year strategic plan • This draft document is as a result of many interactions with various stakeholders, sector departments, local municipalities and community representatives, as reflected in the IDP Process Plan adopted by Council on 22 August 2014

Legislative Context • Municipal System Act 32 of 2000 requires municipalities to adopt a 5 year Integrated Development Plan (IDP) that is reviewed annually in accordance with the assessment of its performance measurements and to the extent that changing circumstances so demand. • Municipal Finance Management Act 56 of 2003 requires the Mayor of a municipality to coordinate the processes for preparing the annual budget and for reviewing the IDP and budget related policies to ensure that they are mutually consistent and credible.

IDP Review Process • District IDP Framework and IDP/Budget process plan were adopted by Council on 22/08/14 • Process Plan outlines timeframes of events, structures involved to ensure achievement of key milestones and deliverables • Key organisational arrangements were established for the review process: IGR, DIMAFO, Rep forum, IDP and Budget steering committees, Sector Plan and District Planning Coordination Forums • Particular attention was paid to the IDP, SDBIP & Budget linkages, district-wide analysis, integration and alignment of plans

The Municipal Vision Amathole District Municipality: Commitment towards selfless, excellent and sustainable service to all our communities

District Population Census 2001 Census 2011 Municipality Population % of total Mbashe 263 959 27. 2 254 909 28. 6 Mnquma 283 667 29. 3 252 390 28. 3 Great Kei 44 459 4. 6 38 991 4. 4 Amahlathi 137 904 14. 2 122 778 13. 8 Ngqushwa 84 233 8. 7 72 190 8. 1 Nkonkobe 129 874 13. 4 127 115 14. 2 24 824 2. 6 24 264 2. 7 Amathole 968 920 Source STATS SA 100 892 637 Nxuba 100

Access to Water • The proportion of Amathole households with access to piped water has increased since 2001 from 112 400 households (48. 6%) to 166 600 households (70. 1% of households) in 2011.

Sanitation • The proportion of Amathole households with access to a flushing toilet has increased from 29 000 households (13. 8% of households) in 2001 to 41 300 households (17. 3% of households) in 2011 • Households with no access to proper toilet facilities has decreased significantly from 98 500 households (43. 1% of households) in 2001 to 40 600 households (17. 2% of households) in 2011

Sanitation cont… • Bucket system in all formal areas has been eradicated • The remaining areas are the informal settlements, due to zoning challenges at LMs • ADM is in the process (15/16) of developing a policy on the temporary/alternative service provision to informal settlements and farms

Municipal Approach on Needs Assessment • Great Kei utilized ward councilors to collect the priorities • Nkonkobe utilised the 50 days of service delivery event to refine ward priorities and the IDP Rep Forum to confirm these • Nxuba utilized the IDP/Annual Report Roadshows • Mbhashe conducted ward based planning • Mnquma utilized CDW’s, Traditional Leaders and Ward Committees to collect the priorities • Ngqushwa and Amahlahi utilized previous year’s issues and verified from communities • ADM Departments conducted sector specific analysis and utilized IDP/Annual Report Roadshows comments

Basic Service Delivery & Infrastructure Priority Issue Possible Intervention Municipal Area Responsible Department Water services Provide access to adequate quality water supply (eradicate backlogs); Installation of water connections to HH; Infrastructure maintenance (ADM) All Municipalities ADM Sanitation Fast track eradication of bucket system; Construct adequate sanitation facilities in HH (ADM) All Municipalities ADM Alternative service provision to informal settlements Roads Paving of internal roads; Road construction and maintenance of internal roads (DRPW, LM) Mbhashe, GKM, Amahlathi, Nkonkobe, Nxuba, Mnquma DPRW LM Electricity connection to HH; Installation of high mast /street lights (ESKOM, LM, DME) Mbhashe, GKM, Amahlathi, Nkonkobe, Nxuba, Mnquma ESKOM LM DME All Municipalities ADM Mbhashe, GKM, Amahlathi, Nkonkobe, Nxuba, Mnquma LM Incorporate alternative power supply into project implementation Community Halls Construction of community halls (LM)

Basic Service Delivery & Infrastructure

Local Economic Development

Good Governance & Public Participation Priority Issue Possible Intervention Public Participation • • Integrated Planning • • Municipal Area Responsible Department Constant feedback to municipalities and All LMs wards on implementation progress PSC to also monitor implementation progress of projects (in the same vein as progress on expenditure is prioritised) Creation of projects database that will be updated continuously District wide Public Participation calendar ADM and LMs Local Government & Traditional Affairs (DLGTA) Review of IDP policy framework/legislation to All LMs include provincial government in the IDP process Development of IDP policy framework for ADM and its LMs Creation of a District Planning Data Bank (accessible through the District intranet) Development of a uniform prioritisation model for the District and LMs ADM and LMs DLGTA Office of the Premier (OTP)

Good Governance & Public Participation Priority Issue Possible Intervention Municipal Area Responsible Department Project management Improve project management, implementation and feedback utilising Intergovernmental Relations For um (IGR) All LMs ADM All Sector Departments Municipal Health services Fast tracking the devolution of powers and functions All LMs Do. H Disaster Management Co-operation from relevant stakeholders in addressing disaster backlogs All LMs All relevant Sectors

Municipal Transformation & Institutional Development Priority Issue Possible Intervention Municipal Area Responsible Department Skills Development Collaboration with other stakeholders in addressing limited skills base within the district Development of Retention Strategy to address the inability to attract and retain personnel All LMs ADM and LMs All relevant sectors Performance Management System (PMS) Separation of IDP from PMS with full staff for each function Enhance independency of both functions (location) Capacity building and support initiatives All LMs ADM LMs DLGTA Sector Departments and ADM to develop sector plans for LMs to prioritise by-laws and policies All LMs ADM Sector Departments LMs Plans, policies and by-laws • •

Municipal Financial Viability Priority Issue Possible Intervention Budget • • • Investment Review allocation of funding nationally to address issue of limited funding (Grant s) Credit control measures to improve revenue collection rate Fast-track projects expenditure Collaboration of all stakeholders to address lack of productive investment Municipal Area Responsible Departmen All LMs National Treasury ADM and LMs All Sector Departments ADM and LMs

OBJECTIVES Municipal Transformation & Institutional Development • Ensure ADM performs optimally in all its assigned powers and functions by 2017 • To attract, retain, build capacity and maximise utilization of district human capital by 2017 • Ensure integrated and responsive Information Communication Technology function by 2017 • To ensure ADM has a fully operational and effective Fleet Management function by 2017 • Mainstreaming of Special programmes by 2017

Municipal Transformation & Institutional Development cont • Facilitate Sustainable and self-sufficient livelihoods in Rural Communities by 2017 • Ensure coherent strategic Spatial Development Framework to guide development by 2017 • To ensure that local municipalities are empowered to render services that are within their powers and function by 2017 • To promote effective communication of ADM’s business to its stakeholders by 2017

• • • Basic Service Delivery & Infrastructure Investment Provision of adequate, potable and sustainable water services infrastructure by 2018 Provision of sustainable and environmentally friendly sanitation and services to all communities by 2018 To ensure reduction of the prevalence of communicable diseases by 2017 Facilitate Sustainable coordination of disaster relief and response by 2017 Enhance the provision and standardisation of fire services by 2017

Basic Service Delivery & Infrastructure Investment • Ensure that solid and medical waste is managed in an integrated, environmentally friendly and sustainable manner throughout the district by 2017 • All households to have access to public transport facilities, within 2 km walking distance by 2022 • Facilitate development of sustainable and viable settlements by 2014 • Develop, conserve and maintain heritage sites by 2017 • Ensure efficient and effective procurement of goods and services by 2017

Local Economic Development • To promote holistic sustainable regional economic development by 2030; • To promote compliance with the Municipal Health Legislation throughout the district by 2017

Municipal Financial Viability & Management • To ensure 43% recovery of costs incurred to provide water and sanitation services by 2017 • To ensure 100% utilisation of budget by 2017 • To ensure sound and sustainable management of municipal finances by 2017 • To ensure ADM Assets are adequately managed and monitored by 2017 • To ensure that local municipalities are empowered to render services that are within their powers and function by 2017

Good Governance and Public Participation • To ensure clean and accountable governance in the district by 2017 • To facilitate coordination, cooperation and joint planning between the spheres of government by 2017 • To promote learning and sharing, both domestically and internationally by 2017 • Mainstreaming of Special programmes into ADM programmes by 2017 • To ensure a district-wide coordination of integrated planning, implementation, monitoring and evaluation by 2017

Good Governance and Public Participation • To ensure that Local Municipalities are empowered to render services that are within their powers and functions by 2017 • To promote effective communication of ADM’s business to its stakeholders by 2017 • To improve compliance of business premises with respect to Municipal Health Services legislation by 2017 • To deepen local democracy through community participation by 2017

Newly Developed and Comprehensive Reviewed Sector Plans • New – Fleet Management Strategy – HIV/AIDS/STI/TB and Cancer Strategy – Disaster Management Plan • Comprehensive – Employment Equity Plan

Principles • • • • 7. 5% salary increases and 2. 5% notch increase with salary related benefits also increasing by 7. 5% Medical Aid 12% increase and other benefits 8% General expenses & repairs and maintenance increased 6. 19% Electricity increased by 13% Bulk Water increased by 9% estimate Performance Bonuses : between 0 and 14% of overall package Top slice equitable share and LRG by R 85 million for internally funded projects Allocated available budget in the same ratio as the prior year R 10 million for vacancies – critical posts R 2. 8 million for movable capital requirements Funding envelopes initially based on prior year expenditure patterns but due to significant deficit changed basis to current year expenditure and cut further The draft tariffs for 2015/16 will only be increased by 6%, in line with the average inflation and the maximum growth set by National Treasury ADM has adopted the balanced budget principle to ensure sustainability (i. e. expenditure must equal income) Expenditure requirements need to be tailored to fit available revenue streams

DORB 2015 Growth from 2014

Prior Year Income Comparison

Income 2015/16

Prior Year Expenditure Comparison

Expenditure 2015/16

Analysis of 15/16 Budget • • 62% of 15/16 total income is Grant funding, which must be ring fenced for specific functions (R 1. 2 billion) Core function of providing Water & Sanitation in the form of service charges only contributes 12% towards income base Depreciation, Leave Redemption Provision, Bad Debt Provision and Post Retirement benefits amount to R 398 million – this exceeds the amount in reserves, so the requirement that these should be cash backed cannot be met Past consumer payment trends have resulted in a need to provide for 80% of the debt book as a provision for bad debts 32% of overall expenditure is committed to salaries and salary related costs If the grant funding is excluded, the percentage increases to 79% Committed to paying R 33. 6 million for interest on the DBSA loan and R 20 million for new financial system The tariffs for 2015/16 are not cost reflective as budgeted salary costs, bulk water and electricity all increased beyond the inflation level

2015/16 Tariff Increases • The draft tariffs for 2015/16 will only be increased by 6%, which is in line with the average inflation and the maximum growth set by National Treasury • The tariffs for 2015/16 are not cost reflective as budgeted salary costs, bulk water and electricity all increased beyond the inflation level • The tariffs as tabulated below are VAT exclusive

2015/16 Tariffs • Domestic consumers – first 6 kl free - a form of relief for domestic consumers which is a R 107. 46 saving per month • Indigent consumers – will receive first 10 kl free • This relief is funded from the Equitable Share allocation

Registered Indigents • In terms of ADM’s policy, if a household earns less than three times the old age government social grant in a month, excluding the child support grant, qualify to register as an indigent • Get 10 kl free water a month • Pay no basic water charges • Don’t pay flat rate charges • Pay no water or sanitation connection fee • Pay reduced water deposit fee • VIP & Bucket clearance is for free • No charge for fire services • Apply at any ADM Office to register • Need proof of income, ADM account, affidavit proving income and employment status

Sanitation Tariffs

Sundry Sanitation Charges

Water Tariffs

Water Tariffs

Water Tariffs

Water Tariffs

Water Tariffs

Water Tariffs

Sundry Water Charges

Fire Services Tariffs

Solid Waste Tariffs

Calgary Museum & Conference Centre Tariffs

Building & Services Planning Tariffs

Amahlathi LM Projects for 2015/16 PROJECT NAME Stutterheim Sewer Pipe Replacement Tsomo Villages Regional Water Supply AMOUNT 4 000 21 000 Zingcuka Water Supply 8 100 000 Amahlathi Area wide Sanitation Projects (Region 2 A) 1 000 Kei Road Settlement 1 000 Stutterheim Water Pipe replacement 1 000 Cathcart Infrastructure Refurbishment (Water Treatment Works Upgrade, Bulk Upgrade & Pipeline Replacement) 400 000 Amahlathi Area wide Sanitation Projects (Region 3) 1 000 Amahlathi Interim Water Supply 4 700 000 TOTAL: R 42 200 000

Great Kei LM Projects for 2015/16 PROJECT NAME Komga Commonage Settlement Services New Waste Water Treatment Works - Morgan's Bay – Feasibility Study Great Kei Interim Water Supply TOTAL: AMOUNT 5 500 000 1 000 3 000 R 9 500 000

Mbhashe Projects for 2015/16 PROJECT NAME AMOUNT Mbhashe North Regional Water Scheme Kumbanga & Cwebe Sanitation 1 000 2 000 Sundwane Water Supply Scheme 5 000 Xora Water Supply Project 3 000 Mncwasa Water Supply Scheme 5 000 Mgwali North Water Supply Project 5 000 Mgwali South Water Supply Project 5 000 Idutywa East Water Supply Project 1 000 Area Wide Sanitation Projects(ASAP)(Mbhashe Phase 1 A) (Region 1) 1 200 000 Mbhashe Area Wide Sanitation (Region 3 B) 1 000 Mbhashe Area Wide Sanitation (Region 2 C) 1 000 Mbhashe Area Wide Sanitation (Region 1 B) Mbhashe Area Wide Sanitation (Region 2 B) 1 000 000 Mbhashe Area Wide Sanitation (Region 2 D) 1 000

Mbhashe Projects for 2015/16 PROJECT NAME Mbhashe Ward 31 Water Supply AMOUNT 2 000 Mbhashe Ward 31 Sanitation 500 000 Bende Water Supply Scheme 3 000 Bende Sanitation Shixini Water Supply Scheme 500 000 3 000 Shixini Sanitation 100 000 Elliotdale Waste Water Treatment Plant (Feasibility Study) 600 000 Dutywa Pipe Replacement 1 477 327 Idutywa Sewer Pipe replacement 1 400 000 Mncwansa Bulk Water Supply 41 000 Xhora East Water Supply 45 000 Idutywa East Interim Water Supply 6 200 000 Seymour Ext 6 and Surroundings Interim Water Supply 2 250 000 TOTAL: R 140 227 327

Mnquma LM Projects for 2015/16 PROJECT NAME Ibika - Centane Regional Water Supply Centane Bucket Eradication Gcuwa West Regional Water Supply Nxaxo and Cebe Water Supply Ngqamakwe Regional Water Supply Phase 1 Ngqamakwe Regional Water Supply Phase 2 Ngqamakwe Regional Water Supply Phase 3 Area Wide Sanitation Projects (Mnquma Phase 1 A) (Region 1) Mnquma Area Wide Sanitation (Ward 17 and 19) AMOUNT 2 000 1 000 5 000 4 000 2 000 1 200 000 1 500 000 1 000 000

Mnquma LM Projects for 2015/16 PROJECT NAME Mnquma Area Wide Sanitation Projects (Region 3 A) Zizamele Sewer Centane Phase 4 Water Supply Bawa Falls Water Supply Project Cafutweni Water Supply Scheme Ibika Water Supply Ngqamakhwe Interim Water Supply Toleni Interim Water Supply TOTAL: AMOUNT 1 300 000 5 459 000 5 000 1 500 000 9 000 6 200 000 4 500 000 R 56 659 000

Ngqushwa LM Projects for 2015/16 PROJECT NAME Peddie Waste Water Treatment Works Upgrade Ngqushwa Villages - Water Reticulation Prudhoe Housing (Bulk Water) TOTAL: AMOUNT 3 200 000 15 500 000 2 000 R 20 700 000

Nkonkobe LM Projects for 2015/16 PROJECT NAME West Victoria East (Roxeni) Water Supply (Phase 3) Hogsback Water Treatment Works and New Reservoir Fort Beaufort Bulk Water Services Upgrading Nkonkobe Area Wide Sanitation Region 3 A Victoria Post Settlement Nkonkobe Interim Water Supply TOTAL: AMOUNT 100 000 5 000 000 1 000 000 4 500 000 16 600 000

Nxuba LM Projects for 2015/16 PROJECT NAME Bedford & Adelaide Bucket Eradication Project - Phase 6 Wortel Drift Farm Settlement Nxuba East Interim WS TOTAL: AMOUNT 4 000 1 000 2 500 000 R 7 500 000

Allocation of R 85 million Internally Funded Projects DEPARTMENT Legislative & Executive Support Services AMOUNT % OF TOTAL ALLOCATION 16 410 000 19% Strategic Management 7 684 471 9% Corporate Services 5 732 000 7% Budget & Treasury 4 710 306 6% 23 850 000 28% 7 150 000 8% Land Human Settlement 17 240 000 20% Municipal Management 2 223 3% R 85 000 100% Engineering Community Services TOTAL:

L&ESS Internally Funded Projects

Strategic Management Internally Funded Projects

Strategic Management Internally Funded Projects

Corporate Services Internally Funded Projects

BTO Internally Funded Projects

Engineering Internally Funded Projects

Engineering Internally Funded Projects cont

Engineering Internally Funded Projects cont

Community Services Internally Funded Projects

LHSED Internally Funded Projects

LHSED Internally Funded Projects cont

LHSED Internally Funded Projects cont

LHSED Internally Funded Projects cont

LHSED Internally Funded Projects cont

LHSED Internally Funded Projects cont

Municipal Management Internally Funded Projects

ASPIRE Agriculture and Rural Development Programme • • • Support the 3 Fish Farming Projects: Hamburg Cob Fish, Qolora Fish and Keiskammahoek Fish Project. They all have business plans. Still to raise funds from DAFF and ADM Out growers and Processing of Aloe: Tyhefu and Nxuba, liked to a Processing Facility to be determined. CSIR working on the business plan Out growers and Packing of Berries: Gxulu Berries (in full production), Sinqumeni Berries (partial production) and Iqunube Berries (site to be established). Funded by Rural Development Honey Production, Packaging and Marketing. Supporting existing honey producers within Amatole in order to secure consistent markets. Brand the honey as Authentic Amathole. Majority of honey producers are in the Ngqushwa and Willowvale areas. CSIR will finalize the business plan Fully implementing the successful pilot project or Bamboo in Ndakana. To be funded by Employment Creation Fund Implementing a Beef Handling Facility in Ngqushwa and completing the one for Ngangegqili. Project funded by National Agriculture Marketing Council and ASPIRE

Small Towns Regeneration Programme • • • Developing Regeneration Strategies for Kei Mouth, Qumra, Elliotdale, Adelaide and Bedford Implementing the Alice Transport Hub. R 12 m project funded by the National Treasury Implementing the Phase 1 of the Carthcart CBD Upgrade. ASPIRE to raise funds for Phase 2 during FY 2015/16 Implementing Alice CBD Upgrade. R 11. 8 m project funded by National Treasury Implementing the Ngqushwa CBD Upgrade with approved funding from National Treasury that will now be transferred to the Department of Rural Development Secure funds approved for the Dutywa CBD Upgrade from the Department of Rural Development in order to start the project in 2015/16 Facilitate funding for Bulk Services for the Ndabakazi Crossing Development Secure additional funding from National Department of Tourism to complete the Emthonjeni Arts Project and also upgrading of Rural Tourism Facilities in Amathole, including Rural Art Centres. Identify problematic access roads that require attention in order to boost Rural Tourism within Amathole. Lobby for funds from Roads and Public Works

Culture, Heritage and Tourism Programme • • • Identify and brand ADM products and services under the Authentic Amathole Brand (Heritage Routes, Agricultural Products, Nature Reserves, Cultural Centres, etc. ) Develop an Amathole Heritage Portal. An internet based information service that highlight the rich culture and heritage that is Amathole for ease of Marketing the District Organise the first Annual Culture and Heritage Indaba. This is to highlight the rich culture, heritage and brand that is Amathole to local, national and international stakeholders Partner with Sporting Associations of Rugby, Cricket and Athletics in order to boost Tourism within the Border Region. Events in these will be able to boost knowledge about Amathole’s Rural Tourism Potential Develop baseline tools for collecting Tourism Information for ADM, what Tourist’s come to do in ADM, how much money do they spend, what do they buy, and so on. Partner with the German and British Embassies to promote knowledge and information about the wars that were fought in Amathole between the Germans, English and Xhosas

Special Projects Programme (funded by DEA) Alien Species Removal Project: • ASPIRE is currently implementing projects for Alien Species Removal in Willowvale, Ngqamakhwe, Shixini and Diya. This project is worth R 6. 6 m and will spillover to the FY 2015/16 • Additional sites under discussion for FY 2015/16 are Hogsback, Keiskamahoek, Kubusi, Rooikraans and Buffalo City. A total of R 8. 9 m has been set aside by Environmental Affairs to be implemented by ASPIRE Adopt a Spot Project: • Project started beginning of March 2015 in Gompo, Zwelitsha and Haven Hills. This project will also spillover to FY 2015/16 • ASPIRE is already engaging DEA to include the Amathole Region for the FY 2015/16 budgeting cycle so that ASPIRE can implement such in Amathole Waste Management Project • This project has not started yet, but will most likely spillover to FY 2015/2016 • Discussions are at an advanced stages with DEA to consider including areas under Amathole Region for FY 2015/16 going forward. • ASPIRE to play a Project Manager Role

Instruments of ADM PMS • • • Performance Management Framework (policy) Employment contracts Performance agreements for MM & Directors Service Delivery & Implementation Plan E-Performance System Accountability agreements and Performance promises for employees below Directors • Individual Employee Performance Plans • Procedure manual for performance information

Performance Reporting and Reviews • • • Departmental reviews - Monthly (Directors) Director’s Reviews – Quarterly (Municipal Manager) Performance Audit Committee Reviews – Quarterly Municipal Manager’s Review Panel – Twice annually Executive Mayor’s Review Panel – Twice annually Council Reviews – Twice annually - 1 st review in preparation for the budget adjustment - 2 nd review for annual performance report • Public Reviews – Evaluation Panel Annually – IDP Rep Forum Quarterly

Way Forward • After all the road shows have been held in the LM’s, Council Open will be held on 7 May • Relevant comments will be incorporated to the final document to be submitted to Council on 22 May 2015 for approval • State of the district address is scheduled for 29 May 2015