Maphumulo IDP - KZN Development Planning

With regards to the Provincial Service Delivery Plans (Outcome Based – Catalytic Projects),the following diagrams outlines and demonstrates the alignment of the core focus of theMaphumulo Municipality to that of the Province. The overall Capital Investment over thenext 5 years are aligned to the strategic imperatives and key areas of intervention identifiedby the municipality namely Provision & Maintenance of Infrastructure, which represents atotal 62% of the resource allocation and capital expenditure, followed by Sustainable RuralDevelopment of 34% and Small Town Regeneration.7.5 SERVICE DELIVERY AND BUDGET IMPLEMENTATION PLANIn line with the MFMA, 2003 (Circular 13), and on the basis of the 2010/11 Operational Planattached to this document as Appendix 2, the municipality prepared the SDBIP 2011/2012which serves as the management and implementation tool for the budget and therefore theIDP. The SDBIP set in-year information, such as quarterly service delivery and monthly budgettargets, and link each service delivery output to the budget of the municipality, thusproviding credible management information and a detailed plan for how the municipalitywill provide such services and the inputs and financial resources to be used. It will alsoindicate the responsibilities and outputs for each of the senior managers in the topmanagement team, the inputs to be used, and the time deadlines for each output.One of the biggest challenges of this Financial Plan is matching increased service demandswith a relatively stagnant revenue basis. This is further aggravated by the challenges ofjoblessness and HIV-ravaged households where the latter, more than often, are childheadedhouseholds. The restructuring of electricity supply also had a severely negativeimpact on Municipal revenue generation. This process resulted in the loss of revenue andfiscal surpluses that the Municipality was relying on.These challenges make the need for realistic and timeous financial planning even morecritical. The Financial Plan is necessarily informed by available resources and therefore alsovictim of resource limits. This contradicts strongly with the demands of the Strategic Planwhich is visionary and goal oriented, striving to achieve an improved quality of life for all theresidents and communities in the Maphumulo Municipality. However, a Strategic Planwithout the support of a disciplined Financial Plan is ultimately doomed as unattainable and“pie in the sky”. The Financial Plan provides the framework within which human challengescan be addressed in a realistic and often incremental manner based on the availableresources. It steers away from creating unrealistic expectations, frustrations and anger.Maphumulo Municipality is faced with the awesome task of eradicating its massive backlogsin service provision. This would require massive resources to address. It is now paramount toconcentrate on the financial planning part of this IDP to determine how and when thesebacklogs can be addressed on a sustainable basis and within the context of availableresources.The Maphumulo budget is MFMA compliant with principles of the MFMA now fully introducedand entrenched in the Municipality’s financial affairs. Yet, the Municipality needs to addressits financial challenges on the following basis:Further improving the Municipality’s image by using the new procedures to enhanceservice delivery.Ensuring that the systems introduced continuously improve during the year.Preserving the Municipality’s cash flow position.Introducing efficiency measures to provide resources to ensure value for money fortaxpayers in line with developed ‘golden rules’.Further enhancing public participation in the next budget cycle.Continuing to improve on information provided to decision makers.__________________________________________________________________________________________Maphumulo Integrated Development Plan (IDP) 2012 - 2013Final June 2012Page 124 of 142