intsika yethu local municipality - Provincial Spatial Development plan

8.3 Financial StrategiesThe Financial Strategy has been formulated to ensure that the IYLM maximises all available opportunitiesthat would enhance Councils financial strength especially considering the cost‐shift environment that hasbeen created with the implementation of assigned powers and functions.Council’s overall Financial Strategy is structured into the following core components to allow for a clearerunderstanding of the overall task:Revenue enhancement and maximisation Strategies;Asset Management strategies;Financial Management Strategies;Capital Financing Strategies;Operational Financing Strategies;Strategies to Enhance Costeffectiveness; andFree Basic Services and indigent Support.These segments are intended to provide operational guidance to staff to assist them in achieving identifiedobjectives and goals.Importantly the Strategies formulated are deemed to be primary mitigating tool against the financial risksidentified, and giving effect to the objectives of the Integrated Development Plan, through ensuring thatthe performance targets as per the Budget underlying the IDP are achieved.The strategies are premised on ensuring compliance with adopted financial policies, modelled onmodernised reform practices applicable to Local Government.8.3.1 Revenue Enhancement and Maximisation StrategyThe purpose of this strategy is to ensure that all possible avenues are explored to maximise the receipt ofany monies available to Council by way of intergovernmental transfers and Grants or Donations, includingexpanding the billing database and maximising income opportunities on every registered serviced sitewithin the LM’s jurisdiction.The second component of this strategy focuses on strengthening and building capacity within creditcontrol and debt management practices and processes of Council, ensuring the attainment and exceedingof collection rates in line with key budgetary requirements.The third component of the strategy focuses on maximising the registration of households eligible forparticipation within the Free Basic Services (FBS) programme of Council, this component is aimed atarresting spiralling debts associated with this user group, and limiting consumption of services in line withthe FBS allocation threshold.In line with the strategy employed, Council has formalised the appointment of a debt collection agency ona contingency arrangement over the next three years to undertake revenue enhancement and debtreduction, with a special focus on skills transfer to a dedicated internal unit.8.3.2 Subsidies and GrantsIn order for Intsika Yethu LM to obtain maximum benefit from external monies available, a policy layingout the relevant procedures has been put in place within the Institution to ensure that all grants,187