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The Integrated Development Plan is the 
municipality’s principle strategic 
planning document. Importantly, it 
ensures close co-ordination and 
integration between project, 
programmes and activities, both 
internally and externally 


Draft Integrated Development Plan 

2014/2015 


March 2014 



Index 


Section A- Executive Summary 

1. introduction 

1.1 Legisiative Requirements 

1.2 The Constitution of Repubiic of South Africa 

1.3 The White Paper on Locai Government 

1.4 Municipai Systems Act, 32 of 2000 

1.5 Municipai Systems Amendment Act, 7 of 2011 

1.6 Municipai Finance Management Act, 56 of 2003 

1.7 Poiicy Context 

1.8 Nationai Deveiopment Pian 

1.9 Medium-Term Strategic Framework 

1.10 Miiiennium Deveiopment Goais 

1.11 Government 12 Outcomes 

1.12 Free State Growth and Deveiopment Strategies 

1.13 Revised Thabo Mofutsanyana District iDP Framework 

1.14 Approach to iDP 

1.15.1 introduction 

1.15.2 Cooperation with the other spheres of governance 

1.15.3 Participation by Poiiticai Parties 

1.15.4 Community Participation 
1.16 Whoare we? 

1.6.1 Ciocoian/Hiohioiwane 

1.16.2 Ficksburg/Meqheieng 

1.16.3 Senekai/Matwabeng 

1.16.4 Marquard/Moemaneng 

1.16.5 Locai, composition and size 

1.16.7 Levei of government 

1.16.8 Powers and functions 

1.16.9 Leveis of administration and existing human resources 

1.16.10 How wiii our progress be measure? 

1.16.11 Howwas ouriDP Deveioped? 

1.16.12 The Review Process 2013/2014 

1.6.13 How often is the iDP going to be reviewed? 

Section B-Situationai Anaiysis 

2. Situationai Anaiysis 

2.1 Popuiation profiie 

2.1.1 Ficksburg/Meqheieng 

2.1.2 Senekai/Matwabeng 

2.1.3 Ciocoian/Hiohioiwane 


2.2.4 Marquard/Moemaneng 

2.2 Priority issues from the community and stakehoiders 

2.3 Priority issues from the municipaiity 

2.4 Combined priority issues and scoring 

2.5 Sociai Anaiysis 

2.5.1 Heaith 

2.5.2 Sociai Security 

2.5.3 Education 

2.5.4 Pubiic Safety and Security 

2.5.5 Pubiic Open Space System 

2.5.5.1 Ficksburg/Meqheieng 

2.5.5.2 Ciocoian/Hiohioiwane 

2.5.5.3 Marquard/Moemaneng 

2.5.5.4 Senekai/Matwabeng 

2.6 Economic Profiie 

2.6.1 Number of persons and sectors empioyed 

2.6.1 Empioyment ieveis 

2.7 Sport 

2.8 Boxing 

2.9 Tennis 

2.10 Soccer 

2.11 Other Sporting Codes 

2.12 Artsand Cuiture 
2.13Spatiai Anaiysis 

2.13.1 Roads of Nationai importance 

2.13.2 Roads of Provinciai importance 

2.13.3 Roads needing upgrade 

2.14 Air 

2.15 Land Use and Settiement Patterns 

2.15.1 Househoid by Gender 

2.15.2 Househoid by Tenure 

2.16 Energy 

2.16.1 For iighting and Cooking 

2.17 Sanitation 

2.18 Refuse Removai 
2.19Water 

2.20 Business 

20.20.1 Ficksburg/Meqheieng 

2.20.2 Ciocoian/Hiohioiwane 

2.20.3 Marquard/Moemaneng 

2.20.4 Senekai/Matwabeng 

2.21 industries 

2.21.1 Ficksburg/Meqheieng 

2.21.2 Ciocoian/Hiohioiwane 



2.21.3 Marquard/Moemaneng 

2.21.4 Senekal/Matwabeng 

2.22 Cemeteries 

2.23 Natural Resources 

2.24 Environmental Sensitive Areas 

2.25 Agriculture 

2.26 Tourism Development 

2.27 Farming 

Section C-Development Strategies 

3. Strategies 

3.1 Long Term growth and development goals 

3.2 Municipal Vision 

3.3 Municipal Vision Statement 

3.4 Our Motto 

3.4.1 Values We Cherish 

3.4.2 Trustand Integrity 

3.4.3 Leadership 

3.4.4 Quality 

3.4.5 Teamwork 

3.4.6 Customer Satisfaction 

3.4.7 Constant and never-ending improvement 

3.3 Defining Success 

3.4 Predetermined Objectives and Localised Strategy Guidelines 
Section D- Projects 

4. Projects 

4.1 Project identification, prioritisation and costing 

4.2 Detailed Project Design 

Section E-Spatial Development Framework 

5. Spatial Vision and Application of Principles 

5.1 Macro-Conceptual Framework 

5.1.1 Natural System Synthesis 

5.1.2 Socio-Economic and Built Environment 

5.2 Sector Gross Value Add Contribution 

5.2.1 Sector Employment Levels 

5.3 Broad Spatial Concept 

5.4 Municipal Spatial Development Framework 

5.4.1 Bio-regions 



Section F-Financial Plan 


6. Executive Summary 

6.1 Recommendations 

6.1 Summary of Operating Revenue and Expenditure 

6.2 Operating Revenue Framework 

6.3 Summary of Operating Revenue by Source 

Section G-Organisational Performance Management and Organisational Structure 

7. Introduction 

7.1 Rationale for Performance Management Systems 

7.2 Policy and Legal Framework 

7.3 The Municipal Performance regulations for Municipal Managerand Managers 
directly accountable to Municipal Manager of 2006 

7.4 Objectives of Performance Management 

7.5 Principles that will guide the Development and Implementation of the 
Performance Management System 

7.6 Organisational Structure 

7.6.1 Purpose 

7.6.2 Background/Brief Overview 
Section H-lntegration 

8. Integration 

8.1 Sector Involvement 

8.2 Internal Planning Programmes 

8.2.1 Current Status of internal planning programme 

8.3 External Policy Guideline Requirement 

8.3.1 Current status of external policy guidelines programmes 

Section l-Approval 


Approval 

9.1 Invitation for comments 

9.2 Adoption 


Annexures 



Section A: Executive Summary 


1. What is the IDP? 

The Integrated Development Plan is the municipality’s principle strategic planning document. 
Importantly, it ensures close co-ordination and integration between project, programmes and 
activities, both internally and externally. The Integrated Development Plan therefore ultimately 
enhances integrated service delivery and development and promotes sustainable, integrated 
communities, providing a full basket of services, as communities cannot be developed in a 
fragmented manner 

As a key strategic plan for the municipality, the priorities identified in the Integrated Development 
Plan inform all financial planning and budgeting undertaken by the municipality. The attainment of 
the Integrated Development Plan and Budget targets and deliverables is monitored and evaluated 
on an ongoing basis. 

However, this requires that targets and deliverables be credible and realistic. Consequently, the 
financial plan as well as the performance management system of the municipality is also outlined 
in the Integrated Development Plan document. 

The Management Team and Middle Management are accountable for the implementation of the IDP, and this is 
reflected in the integrated Performance Management System that links the IDP to the strategic framework, to the 
macro-scorecard, and from there to performance agreements for section 54A and 56 Managers. 

An Integrated Development Plan is a constitutional and legal process required of South African 
municipalities; however, apart from the legal compliance, there are many advantages and benefits 
to undertaking the integrated development planning. These include the following: 

• Prioritisation and allocation of scarce resources to areas of greatest need aligned to 
spatial budgeting. 

• Achieving sustainable development and economic growth. 

• Democratizing local government by ensuring full public participation in its planning, 
implementation, monitoring and evaluation processes. 

• Providing access to development funding through the Medium Term Revenue and 
Expenditure Framework. 

• Encouraging both local and outside investment by developing local economic strategies. 

• Using the available capacity effectively, efficiently and economically. 

Local government operates in an over-changing environment. The dynamic nature of local, 
district, provincial, national and global environments constantly presents local government with 
new challenges and new demands. Similarly, the needs of communities of municipality 
continuously change. 

The five-year Integrated Development Plan of municipality is reviewed annually so that the 
municipality can always be confident that it addresses the real and relevant needs and concerns 
of local communities. This is the second review in the present review cycle from 2001 1-2012 to 
2015/2016. 


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This annual review is not a good corporate governance requirement only; it is also a legislative 
requirement in terms of the Local Government: Municipal Systems Act, 32 of 2000. The focus of 
this year’s Integrated Development Plan review has therefore been on aligning municipal 
programmes, projects and strategies with: 

> Community needs and priorities identified in the next five years and present challenges. 

> Update statistical information 

> Adjustment of targets to keep them realistic within the scarce resources. 

> Revised Spatial Development Framework and other related sector plans. 

This Chapter introduces the IDP by locating it within the right legal and policy context. It also explains the approach 
followed in drafting the plan. 

1.1 Legislative Context 

1 .2 The Constitution of the Republic of South Africa 

The Constitution of the Republic of South Africa outlines the kind of local government needed in the country. According 
to the Constitution (sections 152 and 153), local government is in charge of the development process in municipalities, 
and notably is in charge of planning for the municipal area. The constitutional mandate gives a clear indication of the 
intended purposes of municipal integrated development planning: 

> To ensure sustainable provision of services; 

> To promote social and economic development; 

> To promote a safe and healthy environment 

> To give priority to basic needs of communities; and 

> To encourage involvement of communities. 

The Constitution also demands local government to improve intergovernmental coordination and cooperation to 
ensure integrated deveiopment across the neighbouring communities. 

1 .3 The White Paper on Local Government 

The White Paper on Local Government gives municipalities responsibility to “work with citizens and groups within the 
community to find sustainable ways to address their social, economic and material needs and improve the quality of 
their lives”. 

1 .4 Municipal Systems Act, No 32 of 2000 

Section 25 (1 ) of the Municipal Systems Act stipulates that “Each municipal council must, within a prescribed period 
after the start of its elected term, adopt a single, inclusive and strategic plan for the development of the municipality”. The 
Act dictates that the plan should: link, integrate and co-ordinate plans and should take into account proposals for the 
development of the municipality. In addition, the plan should align the resources and capacity of the municipality with the 
implementation of the plan. 

Moreover, the plan must form the policy framework and general basis on which annual budgets must be based. 
Furthermore, the plan should be compatible with national and provincial development planning requirements binding on the 
municipality in terms of legislation. 

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The IDP has a legislative status. Section 35 (1) states that an IDP adopted by the council of a municipality— 

o is the principal strategic planning instrument which guides and informs all planning and development, and all 
decisions with regard to planning, management and development, in the municipality; 
o binds the municipality in the exercise of its executive authority, except to the extent of any inconsistency between 
a municipality’s integrated development plan and national or provincial legislation, in which case such legislation 
prevails; and 

o binds all other persons to the extent that those parts of the integrated development plan that impose duties or 
affect the rights of those persons have been passed as a by-law 

1 .5 Municipal Systems Amendment Act, No 7 of 201 1 

The Municipal Systems Amendment Act, No 7 of 201 1 heralded a new era in the history of local government in 
South Africa. In principle, it sought to professionalise local governance by ensuring that incumbents holding senior 
positions 

(i) have the appropriate qualifications: and 

(ii) there is no conflict of interest between political office and local government administration by baring 
political officer bearers from holding senior positions in local municipal offices. 

Section 56A (1) states that “A municipal manager or manager directly accountable to a municipal manager may not 
hold political office in a political party, whether in a permanent, temporary or acting capacity.” A political office in relation 
to a political party or structure thereof, is defined as (a)“the position of chairperson, deputy chairperson, secretary, 
deputy secretary or treasurer of the party nationally or in any province, region or other area in which the party 
operates; or (b) any position in the party equivalent to a position referred to in paragraph (a), irrespective of the title 
designated to the position". 

Another key amendment relates to the re-hiring of dismissed staff. Section 57 A. (I) states that “Any staff member 
dismissed for misconduct may only be re-employed in any municipality after the expiry of a prescribed period.” The Act is 
much harsher on employees dismissed for financial misconduct. The Act stipulates that a staff member dismissed for 
financial misconduct, corruption orfraud, may not be reemployed in any municipality fora period of ten years (Section 
57A(3)). 

This Amendment Act contains proposals that are guaranteed to have profound impact on the governance of 
Setsoto municipality. Serious attempts will be made to accommodate these recommendations in the IDP. 

1 .6 Municipal Finance Management Act, No 56 of 2003 

Makes provision for alignment between the IDP and the Municipal Budget. The Service Delivery 
and Budget Implementation Plan is the mechanism that ensures that the IDP and Budget are 
aligned. 

1.7 Policy Context 

The Constitution stipulates that all three spheres of governance are autonomous but interdependent. This therefore 
calls for closer collaboration between all these spheres of governance. Needless to mention, a number of national. 


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including international, policies have a particular bearing on the provincial and local spheres of government. Afew 
critical ones are highlighted below. 

1.8 National Development Plan 

The South African Government, through the Ministry of Planning, has published a National Development Plan. The Plan 
aims to eliminate poverty and reduce inequality by 2030. The Plan has the target of developing people’s capabilities to 
improve their lives through education and skills development, health care, better access to public transport, jobs, social 
protection, rising income, housing and basic services, and safety. It proposes to the following strategies to address the 
above goals: 

• Creating jobs and improving livelihoods 

• Expanding infrastructure 

• Transition to a low-carbon economy 

• Transforming urban and rural spaces 

• Improving education and training 

• Providing quality health care 

• Fighting corruption and enhancing accountability 

• Transforming society and uniting the nation 

At the core of the Plan to eliminate poverty and reduce inequality is the special focus on the promotion of gender 
equity and addressing the pressing needs of youth. It is prudent for Setsoto municipality to take these issues into 
account when planning for development for the next five years. 

1.9 Medium-Term Strategic Framework 

The Medium Term Strategic Framework (MTSF, 2009-2014) is a statement of government intent. It identifies the 
development challenges facing South Africa and outlines the medium-term strategy for improving living conditions of 
South Africans. The MTSF base document is meant to guide planning and resource allocation across all spheres of 
government. National and provincial departments need to developtheirfive-yearstrategicplansand budget 
requirements, taking into account the medium-term imperatives. Municipalities are also expected to adapt their integrated 
development plans in line with the national medium-term priorities. 

The MTSF identifies the following five development objectives: 

Flalve poverty and unemployment by 2014 

Ensure a more equitable distribution of the benefits of economic growth and reduce inequality 
Improve the nation’s health profile and skills base and ensure universal access to basic services 
v" Build a nation free of all forms of racism, sexism, tribalism and xenophobia 
Improve the safety of citizens by reducing incidents of crime and corruption 

1 .1 0 Millennium Development Goals 

The Millennium Development Goals (MDG) and targets come from the Millennium Declaration, signed by 189 countries, 
including 147 Heads of State and Government, in September 2000 and from further agreement by member states at the 
2005 World Summit (Resolution adopted by the General Assembly). At the Summit in 2000, the international community 


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reached consensus on working to achieve eight criticai economic and sociai deveiopment priorities by 2015. The eight 
deveiopment priorities were termed the Miilennium Development Goals. The eight MDGs are, in their numerical order: 

1 . To eradicate extreme poverty and hunger 

2. To achieve universal primary education 

3. To promote gender equality and empower women 

4. To reduce child mortality 

5. To improve maternal health 

6. To combat HIV/AIDS, malaria and other diseases 

7. To ensure environmental sustainability 

8. To develop a global partnership for development 

As a member state of the United Nations, South Africa is a signatory to this agreement. Furthermore, South Africa 
has committed to these eight Millennium Development Goals and embraced them into a national set of ten priorities. 
Writing in the preamble of the third report on progress towards reaching MDGs by South Africa, President Jacob Zuma 
stated thus; 

“let me emphasise that South Africa is committed to the MDG agenda and the Millennium Declaration of 2000. Our entire 
development agenda embraces the MDGs.’’ 

The South African government has sought to domesticate the MDGs so that they suit the local situation without 
compromising the chance of comparability. This has been achieved by developing specific indicators for each goal so 
that it could be easy to measure progress. 

Noteworthy, among all the MDGs, gender equality and empowering women enjoys most support. Gender equality 
and women’s empowerment are said to be critical to achieving the MDGs especially: 

• Goal 1 on poverty reduction and to economic growth, 

• Goal 2 on universal primary education, 

• Goal 4 on reducing child mortality, 

• Goal 5 on improving maternal health; and 

• Goal 6 on combating HIV/AIDS, malaria and other diseases. 

It has been observed however, that gender equality perspectives are poorly reflected across all the MDGs in their 
current formulation. In the first place, most have either inadequate or no gender-sensitive targets or indicators, making 
them difficult to achieve. Second, the targets and their indicators are limited. And lastly, the MDGs appear as stand- 
alone goals, blurring the multi-sectoral links between all goals, targets and indicators, including the cross-cutting gender 
link. 

So as Setsoto municipality develops her 5-year development blueprint these national and international policy contexts 
need to be taken into serious consideration - their limitation notwithstanding. 

1.11 Government 1 2 Outcomes 

From the development focus of the MTSF the government has derived twelve outcome areas that set the guidelines for 
more results-driven performance. The TWELVE KEY OUTCOMES that have been identified and agreed to by the 
Cabinet are: 

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1 . Improved quality of basic education 

2. A long and healthy life for all South Africans 

3. All people in South Africa are and feel safe 

4. Decent employment through inclusive economic growth 

5. A skilled and capable workforce to support an inclusive growth path 

6. An efficient, competitive and responsive economic infrastructure network 

7. Vibrant, equitable and sustainable rural communities with food security for all 

8. Sustainable human settlements and improved quality of household life 

9. A responsive, accountable, effective and efficient local government system 

10. Environmental assets and natural resources that are well protected and continually enhanced 

1 1 . Create a better South Africa and contribute to a better and safer Africa and world 

12. An efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship 

Of the 12 outcomes above, Outcome 9 is closest to local government. The champion of the goal is the national 
Department of Cooperative Governance and Traditional Affairs. In order to achieve the vision of a “Responsive, 
Accountable, Effective and Efficient Local Government System”, seven outputs have been identified: 

Output 1: Implement a differentiated approach to municipal financing, planning and support 

Output 2: Improving access to Basic Services 

Output 3: Implementation of the Community Work Programme 

Output 4: Actions supportive of human settlement outcomes 

Output 5: Deepen democracy through a refined Ward Committee model 

Output 6: Administrative and financial capability 

Output 7: Single Window of Coordination 

1 .1 2 Free State Growth and Development Strategies 

The provincial government of Free State has developed and reviewed a seven-year development strategy; The Free 
State Provincial Growth and Development Strategy (FSPGDS) (2005-2014). The FSPGDS is the fundamental policy 
framework for the Free State Provincial Government. It is the embodiment of the broad strategic policy goals and 
objectives of the province in line with national policy objectives. 

The Strategy addresses the key and most fundamental issues of development, spanning the social, economic and 
political environment. It constantly takes into account annual provincial priorities and sets broad targets in terms of 
provincial economic growth and development, service delivery and public service transformation. 

The Strategy has identified four priority areas of intervention by the province, namely; 

1 . Economic Development and Employment Creation; 

2. Social and Human Development; 

3. Justice and Crime Prevention; 


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4. Efficient Administration and Good Governance 

The expressed “overarching goal of the PGDS is to align the provincial policies with the national policies and to guide 
development in terms of effective and efficient management and governance to achieve growth and development.” 
Equally, Setsoto municipality should strive hard to align its five-year development plans with those of the 
provincial government of Free State. 

1 .1 3 Revised Thabo Mofutsanyane District iDP Framework 

1.14 The Status of Setsoto iDP 

The procedure for reviewing IDP is regarded as an event-centred approach and comprises a systematic sequence 
of planning activities as outlined in the IDP Guide Packs, Revised Frameworkfor Municipalities Outside Metros and 
Secondary Cities of 2012, and detailed in the approved Review Process Plan 2013/2014. These activities are carefully 
organized in certain planning events or steps carried out in different phases. 

1.15 Approach to IDP 
1.15.1 Introduction 

In order to ensure the effective and productive formulation and implementation of the IDP review process, the IDP 
Steering Committee compiled a Review Process Plan 2013/2014 which functions as a business plan and management tool 
to assist with the day-to-day management of the review process. The Review Process Plan 2013/2014 deals with several 
aspects aimed at streamlining the IDP review process, as detailed below. 

Firstly, the institutional arrangements are outlined which provides a clear understanding of the organizational structure, 
the different role-players (internal and external), as well as the distribution of their roles and responsibilities. Since the 
active involvement of the community and stakeholder organizations is a key feature in the IDP, the Review Process Plan 
2013/2014 also makes provision for mechanisms and procedures for public participation. 

A public participation strategy has been prepared which contains several tools and principlesforparticipation, roles 
and responsibilities, means of encouraging participation and logistical arrangements. To ensure parallel processes and 
effective co-ordination between the local municipality and other spheres of government the Review Process Plan 
2013/2014 also includes different proceduresforalignment. 

It makes provision for alignment with the IDP framework of the District Municipality which is a mutually aligned review 
process highlighting agreement principles, communication mechanisms, joint events and time frames as well as 
organizational structures and mechanisms for solving disputes. 

Finally, the Review Process Plan 2013/2014 provides a detailed action programme with timeframes and cost 
estimates for implementation of all the planning activities as well as a summary of all external planning requirements to 
ensure a truly integrated review process. 

In terms of ChapterV of the Local Government: Municipal Systems Act, 2000 (No 32 of 2000), local government bodies are 
required to annually review and implement Integrated Development Plans fortheir respective areas of jurisdiction. These 
IDPs are meant to deal with all developmental and planning related issues for a period of five years, and reviewed 
annually to adapt to the changing environment. This is the second review of the current term of office of the councillors 


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1 .1 5.2 Cooperation with other spheres of governance 

The law is emphatic on the need for local government to cooperate with other spheres of governance. The Municipal 
Systems Act states that municipalities must exercise their executive and legislative authority within the constitutional 
system of co-operative government. 

It further places an obligation on provincial and national spheres of government to exercise their executive and legislative 
authority in a manner that does not compromise or impede a municipality’s ability or right to exercise its executive and 
legislative authority. 

For these reasons, the law requires that the planning undertaken by a municipality must be aligned with, and 
complement, the development plans and strategies of other affected municipalities and other organs of state so as to 
give effect to the principles of co-operative government. 

As such utmost care has been taken to ensure that this IDP is aligned with national and provincial governments’ plans 
- as well as other neighbouring municipalities’ plans. No less than five meetings or workshops were held with various 
stakeholders from national and provincial sector departments 

A series of workshops were held jointly by the Free State Provincial Department of Cooperative Governance and 
Traditional Affairs that were attended by IDP officials from Setsoto Local Municipality. 

In addition, the provincial Department of Cooperative Governance and Traditional Affairs convened a meeting of all 
provincial departments in the Free State as well all municipalities - local, municipal and metro alike. The purpose of the 
meeting was to allow provincial departments an opportunity to outline their development projects for better alignment 
and improved cooperation with municipalities. 

Over and above this, the Provincial Department of Cooperative Governance and Traditional Affairs convened a 
special meeting of all municipalities and provincial departments to conduct an assessment of the alignment of 
municipal IDPs with provincial department’s priorities held from the 22"'' to the 25**^ April 2014. A follow up 
meeting was also convened to confirm that suggestions from various sector departments had been addressed in the 
revised IDP. 

Strenuous efforts have been made to ensure that these projects have been included or noted in the IDP. Furthermore, 
key development plans such as the National Development Plan and the Free State Growth and Development Strategy 
have been reviewed in order to ensure alignment with national and provincial development priorities. 

1 .1 5.3 Participation by Poiiticai Leadership 

The law is clear on the role of political leadership in the plan for the municipal development priorities and the IDP in 
particular. The political leadership, especially the Mayor is supposed to provide guidance or vision for the Municipality 
for his Council’s term of office. The political leadership in Setsoto has been highly proactive in the development of this 
IDP. 

Immediately after the inauguration of the new Council, the councillors were taken through the process or phases of IDP 
development. Key issues were identified and “bracketed” for confirmation with other key stakeholders - especially 
membersof the community. Thereafter, two meetings with political leaderships were organised in addition to 
interacting with them at the ward levels as representatives of members of the community. 


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1 .1 5.4 Community Participation 

The law mandates the council of a municipality to encourage the involvement of the local community and to consult the 
local community about: 

I. the level, quality, range and impact of municipal services provided by the municipality, either directly or through 
another service provider; and 

II. the available options for service delivery. 

The law places special emphasis on gender equity. It instructs municipalities to promote gender equity in the exercise 
of the municipality’s executive and legislative authority. 

The law further accords members of the local community the right to: 

(i) contribute to the decision- making processes of the municipality; and 

(ii) submit written or oral recommendations, representations and complaints - to the municipal council or to 
another political structure or a political office bearer or the administration of the municipality. 

Moreover, residents have the rightto be informed of decisions of the municipal council affecting their rights, and property. 

Setsoto municipality has made every effort to ensure maximum participation by members of the local community in the 
development of the IDP. In this instance, Ward Based Planning was scheduled to take place at Aldam Game reserve on 
the weekof the 17‘h to the21s‘ February 2014 tofacilitate the development of the ward plans, due to the insistence of the 
Democratic Alliance, this activity could not take place as the Democratic Alliance threatened to take the municipality to 
high court if the municipality carries this activity out. 


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1.16 Whoarewe? 

1.16.1 Clocolan/Hlohlolwane 

Clocolan, established in 1906, is a small town in the Free State Province of South Africa. The Basotho called the place 
Hlohlohlwane. The whites mispronounced the name and called it Clocolan. The town is located West of Prynn’s Berg 
along the Maloti Route, twenty kilometres for the Caledon Rive and some hundred and sixty six kilometres North-East of 
Bloemfontein 

Laid out on a farm Harold and Rienzi in 1 906, it became a municipality on 1 8 July 1 91 0. The name is a Sesotho name 
derived from Hlohlolwane, meaning stand up and fight, which refers to altercation between two black tribes many years 
ago. In approximately 1800, the Bakwena Chief Motebang lived in the Northern part of Clocolan (then Betang) on the 
farm Nebo, near the Zulu clan, the Baphuthi. Motebang invited Baphuthi after a successful harvest, to help him and his 
people to corn-stark the baskets. 

An argument erupted in the midst of craze, an aged Motebang charged at one of the Baphuthi’s, but he tripped over a 
basket and tumbled to the ground. An all-out ruction broke loose. During the row, a slogan was chanted Hlohla-u-loane 
or Hlohlolwane, meaning get/stand up and fight or staan op en veg. the township of Hlohlolwane is a logical result of 
Clocolan’s establishment and both towns have experienced growth over ensuring years. 

1.16.2 Ficksburg/Meqheleng 

Situated at the foot of the 1 750 metre high Imperani Mountain in the Free State Province of South Africa. The town was 
founded by General Johan Fick in 1867, who won the territory in the Basotho Wars. He laid out many erven and plots 
that could be bought at a reasonable price. The town was later proclaimed a municipality in 1 891 . The last governor - 
General of the Union of South and the first State president of South Africa, Charles Robberts Swart was imprison here 
by the British in 1941 and realised one day before his scheduled execution. 

Some of the notable individuals from Ficksburg are; acclaimed author Marie Warder, Roelf Meyer a politician who 
schooled and matriculated here, Andries Tatane who was born on 22 February 1978 and died 13 April 2011- a 
mathematics teacher and a community activist who was brutally murdered on the streets by police officers during a 
community service delivery protest and rugby player Frank Herne. 

Ficksburg, after Bethlehem, found in our sister municipality Dihlabeng, is the Head Office of the municipality and the 
second busiest and important town in the Eastern Free State. It is an important agricultural area where crops like corn, 
maize and asparagus are grown. The most important part of the annual crop is the harvesting of the cherries on the 
numerous farms surrounding the town. 

The cherries are harvested from October to December and annually in November the Cherry Jazz and Cherry Festivals 
are held. The festivals stretch over two weeks, the Jazz the weekend preceding the three days of the cherry festival in 
the next week and have grown to attract up 100 000 people. 

Ficksburg is known as “The Gateway to the Mountain Kingdom of Lesotho’’ is an enclaved country in the Eastern part of 
South Africa and boost a large cosmopolitan population. From Ficksburg you can depart to Katse Dam in Lesotho. This 
dam is important to South Africa, because it annually provides hundreds of millions of litres of water to the industrial and 
commercial Gauteng Province, and in recent years even to Setsoto Local Municipality due to shortage of water in 
Clocolan, Marquard and Senekal. The dam is also very popular very scenic area situate 3000 metres high up the Maluti 

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Mountains of Lesotho and very popular for boating and fishing and is visited by thousands of tourist who pass through 
Ficksburg on their way to Lesotho every year. 

The area is also known as the asparagus region of South Africa. Hundreds of tons of asparagus are harvested from 
September to December. Other kinds of fruit like peaches, apricots, and apples are also grown in the region. Livestock 
is also an important industry in the area; there are numerous dairy farms in the country side. 

The town is renowned for the breath-taking sandstone formation of the mountains and many of the older buildings in and 
around the town were built of sandstone. Interestingly the Union Buildings in Pretoria are built from sandstone quarried 
in the surrounding area. Gumtree, a small settlement just outside Ficksburg, has the tallest sandstone structure in the 
world- an old mill which is sadly no longer in use. 

1.16.3 Senekal/Matwabeng 

It is situated on the N5 on the banks of the Sand River in the Eastern part of the Free State Province in South Africa. 
Senekal was named after Commandant F P Senekal; it lies West of Winburg and Bethlehem to the East. Its township is 
known as Matwabeng which is the fastest growing township in the municipality. 

The magnificent Dutch Reformed Mother Church rests in the middle of the town and is “protected” by fascinating 
prehistoric tree trunks, which were discovered in the area. Senekal, with its enviable climate, clean and fresh air, 
atmospheric scenery and star-studded nights is an agricultural community and is rich in history. 

Notable people from Senekal are the first two democratic Mayors Mrs Molete M M and Mr Maduna M, Naka Drotske, a 
rugby coach at the F S Cheetahs, Dingaan Mokebe, an actor and a TV personality known as James Motsamai in 
Muvhango, Toks van der Linde, WP player and TV personality and Serame Letsoaka, Director of Coaching at SAFA and 
Assistant Coach at Bafana Bafana. 

Place of interest in Senekal includes Arizona game Reserve, Biddulphs Mountain Resort and Willem Pretorius Game 
Reserve, though in Matjhabeng local Municipality, falls under Setsoto Local Municipality boundaries. 

1.16.4 Marquard/Moemaneng 

Marquard is 169 kilometres East-North-East of Bloemfonten and 45 kilometres South-West of Senekal. It was 
established in 1905 on the farm Varschfontein by an influential Dutch Reform Minister J J Marquard, with the help of 
Christoffel Cornelis Froneman, the commandantof the Orange Free State. Itattained the municipal status in the same 
year. 

1 .1 6.5 Location, composition and size 

Setsoto is situated in the eastern Free State within the district boundaries of the Thabo Mofutsanyana District Municipality. 
The local municipality area measures 5 948.35 km^ in extent and comprises four urban areas namely 
Ficksburg/Meqheleng, Senekal/Matwabeng, Marquard/Moemaneng and Clocolan/Hlohlolwane, as well as their 
surrounding rural areas. 


Page 11 of 65 


Section A: Executive Summary 


Area 

No of Erven/Farms 

Size (Km^) 

% of Area 

Ficksburg 
Meqheleng 
Caledon Park 

Word 

Number 


10 

1 219 

12 

1 487 

13 

2 145 

14 

1 791 

15 

2 554 

16 

2 396 

17 

512 

18 

1 517 

Ficksburg 

13 621 

73.18 

1.23% 

Clocolan 

Hlohlolwone 

8 

2 289 


9 

1 822 

1 1 

2 108 

Clocolan 

6219 

21.39 

0.36% 

Morquord 

Moemoneng 

1 

1 781 


2 

2 679 

AAorquard 

4 460 

19.73 

0.33% 

Senekol 

Motwobeng 

3 

1 649 


4 

1 566 

5 

722 

6 

3 102 

7 

2 348 

Senekal 

9 387 

37.07 

0.62 

Rurol 

2913 

5 796.98 

97.46 

Total 

36 600 

5 948.35 

100.00 


1.16.7 Level of government 


The Setsoto Local Municipality was established in terms of Section 14 of the Local Government: Municipal Structures 
Act, Act No 1 17 of 1998) and was published in Provincial Gazette No 184 dated 28 September2000. The Local Municipality 
is a category B Municipality with a collective executive system combined with a ward participatory system as contemplated 
in Section 3(b) of the Determination of Types of Municipality Act, 2000 (Act No 1 of 2000). 

1.16.8 Powers and functions 

The powers and functions assigned to the new Municipality are stipulated in sections 156 and 229 of the Constitution and 
Sections 83 and 84 of the Local Govemment: Municipal Structures Act, 1998, as amended. More specifically, the powers 
and functions of the Municipality relating to Section 84 of the said Act were promulgated in Provincial Notice No 126 dated 
30 June 2005 and are as follows: 

Section84(1)(e) Solidwaste 

Section84(1)(f) Roads 

Section 84 (1) (j) Firefighting services 

Section84(1)(l) Cemeteries 

Section 84 (1) (n) relating to any of the above functions 

1.16.9 Levels of administration and existing human resources 

The administrative structure comprises of 4 administrative units with a Municipal Manageras head of the administration 
situated in the head centre in Ficksburg. The organizational structure and levels of administration and existing human 
resources are indicated in the organisational development and transformation plan discussed later in the document. 


Page 12 of 65 


Section A: Executive Summary 


1.16.10 How will our progress be measured? 

The implementation of this IDP will be measured by applying the Performance Management Systems Frameworkofthe 
municipality and the implementation of the approved Service Delivery and Budget Implementation Plan for 2014/2015. 

The performance of the Municipal Managerand S56 employees will be measured against the signed performance 
agreements for the period 01 July 2014 to 30 June 2015.The Auditand Performance Audit Committee will reviewthe 
performance of the municipality quarterly in accordance with the Municipality Finance Management Act, Municipal Systems 
Act as well as the Planning and Performance Management Regulations of 2001 . 

The Municipal Public Accounts Committee will sit immediately after the tabling of the Annual Report 2014/2015 to 
deliberate on the audit Annual Financial Statement 2014/201 5 and the Annual Performance Report 2014/201 5 and 
submitand Oversight Report 2014/2015 toCouncil forapproval during the discussion of the Annual Report 2014/2015. 

1.16.11 How was our IDP developed? 

The procedure for reviewing IDP is regarded as an event-centred approach and comprises a systematic sequence 
of planning activities as outlined in the IDP Guide Packs, Revised Frameworkfor Municipalities Outside Metros and 
Secondary Cities of 2012, and detailed in the approved Review Process Plan 2013/2014. These activities are carefully 
organized in certain planning events or steps carried out in different phases 

1.16.12 The Review Process Plan 2013/2014 

In order to ensure the effective and productive formulation and implementation of the IDP review process, the IDP 
Steering Committee compiled a Review Process Plan 2013/2014 which functions as a business plan and management tool 
to assist with the day-to-day management of the review process. The Review Process Plan 2013/2014 deals with several 
aspects aimed at streamlining the IDP review process, as detailed below. 

Firstly, the institutional arrangements are outlined which provides a clear understanding of the organizational structure, 
the different role-players (internal and external), as well as the distribution of their roles and responsibilities. Since the 
active involvement of the community and stakeholder organizations is a key feature in the IDP, the Review Process Plan 
also makes provision for mechanisms and procedures for public participation. 

A public participation strategy has been prepared which contains several tools and principlesforparticipation, roles 
and responsibilities, means of encouraging participation and logistical arrangements. To ensure parallel processes and 
effective co-ordination between the local municipality and other spheres of government the Review Process Plan 
2013/2014 also includes different procedures for alignment. It makes provision for alignment with the IDP Framework 
of the District Municipality which is a mutually aligned review process highlighting agreement principles, communication 
mechanisms, joint events and time frames as well as organizational structures and mechanisms for solving disputes. 

Finally, the Review Process Plan 2013/2014 provides a detailed action programme with timeframes and cost 
estimates for implementation of all the planning activities as well as a summary of all external planning requirements to 
ensure a truly integrated review process. 

1.16.13 How often is the IDP going to be reviewed? 

In terms of ChapterV of the Local Government: Municipal Systems Act, 2000 (No 32 of 2000), local government bodies are 
required toannually reviewand implement Integrated Development Plans for their respective areas of jurisdiction. These 
IDPs are meant to deal with all developmental and planning related issues for a period of five years, and reviewed 
annually to adapt to the changing environment. This is the second review of the current term of office of the councillors 

Page 13 of 65 


Section A: Executive Summary 


Yearly Schedule 

To ensure that our 5-year vision is realised, the municipality continually review and assess its plan on a yearly planning 
cycle. Throughout the year, each goal is monitored and progress is assessed. The following shows the Strategic and 
Execution cycle yearly schedule. 


Strategic Planning Cycle 


Strategic Planning Cycle 

Start Date 

End Date 

Activity 

September2013 

December2013 

IDP Steering Committee assesses the internal and external 
environment (SWOTs), develops the definition KPAs, and 
assesses organisational mission and vision 

January 2014 

February 2014 

Municipal Manager releases a draft plan in a letterfollowed 
by a workshop to all departments giving them guidelines to 
start work on their goals aimed at making the Defining 
Success story a reality in 5 years. Goals must be organised 
undereach KPA. However, no implementation plansfor 
these goals need be written at this time. 

Municipal Manager’s Coordinating Task Team develop 
Specific, Measurable, Attainable, Realistic and Time 
dependent (SMART) goals 

In a second workshop, these gaols are assessed, 
combined and identified as to which department to lead and 
which to support. 

These goals are then assembled into ten (10) to fifteen 
(complex for the Director. The balance of the goals that 
were originally developed by the IDP Review Community 
Representative Forum but not assembled into the Director 
goals will become internal gaols for relevant division. 

Obviously the latter will be aimed to improve customer 
focus, processes, people and data as categorised under 
each KPA 

March 2014 

April 2014 

Management meet with the IDP Steering Committee and 
get their inputs and or concurrence on our plan, and 
provides feedback to all 

May2014 

May 2014 

Strategic Plan is compiled and finalised. New goals within 
the plan drives the 2014/2015 budget 

June 2014 

June 2014 

Strategic Plan is issued to all with a letterfrom the 

Municipal Manager 


Strategic Execution and Review Cycle 

Strategic execution involves implementing strategies setforth in strategic plan, monitoring progress towards their 
achievement, and adjusting as necessary. To ensure that our 5-year vision is realised, the municipality is committed to 
follow through every deliverable listed within each municipal goal with the use of the Service Delivery and Budget 

Page 14 of 65 


Section A: Executive Summary 


Implementation Plan 2014/2015. We anticipate following the following timeline in the execution and review of our 
strategic goals. 


October2014 

October2014 

1®‘quarterassessmentofthe 20142015 IDP. Divisional 

Managers will personally report progress to the Directorfor 
which she or he is responsible and accountable for delivery. 

A consolidated departmental progress reportwill be submitted to 
the Municipal Manager by the Director. 

January2015 

January2015 

2'^'^ quarterassessmentof the 2014/2015 IDP. Divisional 
Managers will personally report progress to the Directorfor 
which she or he is responsible and accountable for delivery. 

A consolidated departmental progress report will be submitted to 
the Municipal Manager by the Director. 

Submission of the Mid-year Budget Performance Assessment 
Report 

Tabling ofthe Annual Report 201 3/2014 financial year 

February 2015 

February 2015 

Submission and approval of the Adjustments Budget 

March 2015 

March 2015 

Approval of Oversight Report 

Adoption of the draft IDP 2015/2016 

Adoption of the draft Budget 2015/2016 

April 2013 

April 2013 

3'''* quarter assessment of the 2012/2013 IDP. Divisional 

Managers will personally report progress to the Directorfor 
which she or he is responsible and accountable for delivery. A 
consolidated departmental progress reportwill be submitted to 
the Municipal Manager by the Director 

Submission of further inputs on the draft IDP 2015/2016 and 
draft Budget 2015/2016 by communities 

Provincial Assessment Sessions on the draft IDPs 

May2015 

May2015 

Approval of final IDP 2015/2016 and Budget 2015/2016 

June 2015 

June 2015 

ApprovalofSDBIP 2015/2016 

Signing of Performance Agreements by section 56 Managers 
and approval of duty sheets and individual scorecards by all 
other employees 

July2013 

July2013 

4‘*^quarterassessmentof the 2012/2013 IDP. Divisional 

Managers will personally report progress to the Director for 
which she or he is responsible and accountable for delivery. A 
consolidated departmental progress reportwill be submitted to 
the Municipal Manager by the Director 


Page 15 of 65 


Section B: Situational Analysis 


2. Situational Analysis 

Detailed status quo of the analysis of the municipal area, with inputs from the community, organisations, business, non- 
state actors, state owned enterprises, spatial analysis and SWOT analysis. 

The first step in the IDP review process needs to look at the existing situation of the municipality. During the Analysis 
phase the review process focused only on the relevant aspects of issues influencing the development of the municipality. 
The purpose of this phase was also then to ensure that decisions on strategies and projects would be based on; 

> the qualitative priority needs and challenges on local residents, 

> proper quantitative information on all those priority issues, 

> clear knowledge of the availability of local resources, and 

> a holistic understanding of the dynamics or key issues determining the various development priorities within the 
municipality. 

Relevant statistical information gathered during the formulation IDP process was presented to community members 
during community meetings. This served as basis for discussing the needs and priorities of residents within the various 
functional areas of the municipality. The findings were then analysed and discussed further during Representative 
Forum meetings to identify the causes determining each priority issue and to formulate certain development principles 
against the knowledge of such causes. 

The findings were then presented under a number of integrated sectors, which coincide with the various analyses 
proposed within the IDP guide-packs and include institutional, social, infrastructure, economic, environmental and spatial 
analyses. Deriving from the current realities and cross-cutting analysis, a list of priority development issues were 
identified which served as a basis for a more detailed, in-depth analysis. 

Finally, the results from the in-depth analysis enabled the representative forum to identify a set of development priorities 
to be focused on within the next five years. The key issues applicable to each of the development priorities were also 
taken from the in-depth analysis and form the foundation for the next phase, namely the formulation of the vision and 
development objectives. 

In the current review, no public participation process took place due to the fact that the Democratic Alliance threatened 
the municipality with court action if this process takes place and desktop analysis on the previous committee 
engagements were done by the IDP Steering Committee and the Municipal Manager’s IDP Coordinating Task team, and 
the following methodology was used: 


Page 16 of 65 


Section B: Situational Analysis 



Safety and 
security 


Manyoftk 

elementsof 

adecent 

standardof 

Irving 

dependon 

local 

wmA 



■ PLAN AND DELIVER 

• Water 

• Sanitation 

• Electricity 

• Waste management 

• Housing 

• Roads 


Indirect 
Role 




' PLAN TOGUIDE THE 

DELIVERY 

' Safety 
' Health 
' Education 
' Job creation 


2.1 Population profile 


The size of the population within the area of Setsoto is estimated at approximately 1 12 599 people by census 201 1 , 
decreasing from 123 194 from the census 2001 , as indicated in the table below. The figure is calculated on the basis of 
census 201 1 incorporating annual growth based on the average annual growth rate of the Free State province. 

2.1.1 Ficksburg/Meqheleng 


Place 

Population 

Area 

(Km2) 

Racial Make Up 

Numbers 

Percentage 

Ficksburg 

5 400 

50.35 

Black African 

37 372 

90.6% 

Boitumelo 

1 532 

0.51 

Coloured 

784 

1.9% 

Ha Molo 

311 

0.13 

Indian/Asian 

660 

1.6% 

Itumeleng Zone 3 

630 

0.11 

Whites 

2 310 

5.6% 

Katlehong 

3197 

0.71 

Other 

122 

0.3% 

Khaphamadi 

646 

0.2 

Total 

41 248 

100% 

Marallaneng 

727 

0.09 

Percentage of Tota 

Population 

36.63% 

Masaleng 

2184 

0.6 

Male 

20 890 

Meqheleng Zone 1 

590 

0.9 

Female 

24 434 

Meqheleng Zone 2 

1 633 

0.26 


Meqheleng Zone 3 

1 210 

0.3 

Meqheleng Zone 4 

975 

0.21 

Meqheleng Zone 5 

1 745 

0.26 

Meqheleng Zone 6 

2 822 

0.49 

Meqheleng Zone 7 

5 223 

0.68 

Meqheleng Zone 8 

10 529 

1.93 

Vukazenzele 

1 894 

0.46 

Total 

41 248 

58.19 


Page 17 of 65 



Section B: Situational Analysis 

2.1.2 Senekal/Matwabeng 



Place 

Population 

Area (Km^) 

Racial Make 

Up 

Numbers 

Percentage 


Senekal 

3 466 

32.88 

Black African 

23 751 

93% 

Matwabeng Extension 4 

9 883 

1.63 

Coloured 

158 

0.6% 

Matwabeng Extension 5 

2 450 

0.87 

Indian/Asian 

83 

0.3% 

Matwabeng Extension 6 

413 

0.1 

Whites 

1497 

5.9% 

Matwabeng SP 

992 

0.07 

Other 

54 

0.2% 

Matwabeng Zone 1 

1 254 

0.38 

Total 

25 543 

100% 

Matwabeng Zone 2 

6 037 

1.08 

Percentage of Total Population 

22.68% 

Matwabeng Zone 3 

1048 

0.08 

Male 

11908 

Total 

25 543 

37 

Female 

13 643 


2.1.3 Clocolan/Hlohlolwane 




Place 

Population 

Area (Km^) 

Racial Make Up 

Numbers 

Percentage 


Clocolan 

1349 

15.76 

Black African 

16 839 

96.3% 

Diamong 

934 

12 

Coloured 

61 

0.3% 

Dipotomaneng 

1616 

0.28 

Indian/Asian 

56 

0.3% 

Hlohlolwane Extension 6 

6 707 

1.05 

Whites 

19 

0.1% 

Mandela Park 

1650 

0.5 

Other 

627 

3% 

Matikareng 

962 

0.19 

Total 

17 602 

100.00 

Mokodumela 

994 

0.16 

Percentage of Total Population 

15.63% 

Ntsharebone 

732 

0.29 

Male 

8 049 

Sunflower Park 

2 024 

0.35 

Female 

9 553 

Thethe 

634 

0.27 



Total 

7 602 

30.85 



2.1.4 Marquard/Moemaneng 




Place 

Population 

Area (Km^) 

Racial Make Up 

Numbers 

Percentage 


Marquard 

1033 

7.3 

Black African 

14 813 

95.3% 

Moemaneng Extension 1 

940 

0.17 

Coloured 

56 

0.7% 

Moemaneng Extension 2 

1038 

0.22 

Indian/Asian 

84 

0.5% 

Moemaneng Extension 3 

1848 

0.37 

Whites 

499 

3.2% 

Moemaneng Extension 4 

2 187 

0.35 

Other 

50 

0.3% 

Moemaneng Extension 7 

1 239 

0.11 

Total 

15 502 

100% 

Moemaneng Extension 8 

838 

0.14 

Percentage of Tota 

Population 

13.76 

Moemaneng SP 

4 409 

0.83 

Male 

7 254 

Motampelong 

1 191 

0.25 

Female 

8 248 

Riverside 

779 

0.15 



Total 

15 502 

9.89 



Deriving from the tables above, it is evident that the percentage from the urban areas of the municipality is 88.70% and 
that of the rural/farming area is 1 1 .30% which is 99 876 and 12 723 people respectively. 

Page 18 of 65 


Section B: Situational Analysis 


2.2 Priority issues from the community and stakehoiders 

Following a process of intensive community process and stakeholder workshops through ward based placed meetings 
held in the previous financial year with representatives from each of the eighteen wards within the local municipality, a 
whole range of needs, issues and aspirations were identified. These needs were then reprioritised in accordance with 
the available resource allocation for the 2014/201 5 financial year and their relevance to such. 

2.3 Priority issues from the municipaiity 

Following a similar process as with the community and stakeholders, councillors, officials and sector departments were 
requested to identify the priority needs in relation to the operational systems together with the relevance of the needs to 
their respective functional areas. These reprioritised issues were then discussed at a representative forum workshop 
held in held first week of April 2014 in order to create a context and common understanding of issues. 

2.4 Combined priority issues and scoring 

Subsequent to analysing the different prioritised needs and issues discussed and agreed upon, all the different issues 
were combined under key performance areas after which the community representative forum had an opportunity to add 
to the list. Using the Venn diagram, representatives were then asked to score the different issues according to the level 
of importance, and the results from the reprioritisation process were used to determine specific focus areas for in-depth 
analysis. 

The SWOT analysis flow was informed using the following diagram: 


Strength 


Weaknesses 


r 


Well-developed 
Infrastructure 
StrongSoclal Networks 
Well Developed 
Infrastructure 
Strongsoclal networks 


Hlgh unemployment and dependency rate 

Relative high crime rate 

High levels of illiteracy 

Limited public transport 

In adequate social facilities 

Roads not well maintained 

Infrastructure notwell maintained 




Opportunities 


Threats 


r 




Development of skills 


Proximity to Lesotho 

High rate of HIV/AIDS infections 


Page 19 of 65 


Section B: Situational Analysis 


2.5 Social Analysis 

The outputs of the IDP review process are aimed at improving the lives of local communities and it is important to 
ensure that the municipality’s strategies and projects sufficiently consider the social realities and needs of all residents. 

Consideration should specially be given to the disadvantaged and/ or marginalised population groups, as this will guide 
poverty reduction efforts effectively 

During the above-mentioned processes, an overview of social strengths and weaknesses within the municipality was 
done, as well as the opportunities and threats outside the municipality. This enables the identification of; 

• Social 

• Environmental 

• Legislative 

• Political 

• Technological 

• Economical 

needs and constraints that need to be considered and addressed during the process. Based on the analysis done, the 
following were identified: 

2.5.1 'Health 

The municipality has three hospitals, one in each town except in Marquard, there are thirteen clinics spread all over the 
four towns of the municipality. The challenges are with the rural/farming areas that are in need of mobile facilities, as 
most of these people travel more than five kilometres to reach a clinic. 

Poor conditions of roads also contribute to these situations as some of the areas are inaccessible. The shortage of staff 
at the clinics also plays a role in our incapacity to provide sustainable health services to our communities. Doctors are 
also not available full time at the clinics as they only visit on certain days. 

Most of the people infected with HIV/AIDS put a strain on the health system within our municipal area, and our locality 
with Lesotho also aggravates the situation as more Lesotho citizens uses facilities that are in our area for their health. 
There are only two ARV Assessment and Treatment sites in the municipality, the one is situated in Marquard and the 
other in Ficksburg. 

In addition to the quantitative standards, other demand drives, which have impact on the provision of clinics, include the 
Department of Health’s regulations, the medical expenditure of households and existing clinics in the area. The facility at 
the rural service centre should be a Primary Health Care Centre; a mobile clinic could be operated from here to the 
outlying areas. 


Emergency Medical Services is under the control of the Free State Provincial Government Department of Health, this 
services is under capacitated in terms of human resources and equipment. Below tables gives an overview of the 
current situation with regard the service facilities. 


Area 

Hospital 

Clinic 

Mobile Clinic 

Community Care Centre 

Ficksburg 

1 

2 

2 

2 

Caledon Park 

0 

0 

0 

0 

Meqheleng 

0 

3 

0 

0 

Senekal 

1 

3 

2 

0 


Page 20 of 65 


Section B: Situational Analysis 


Matwabeng 

0 

2 

0 

0 

Ciocolan 

1 

1 

1 

0 

Fllohlolwane 

0 

1 

0 

0 

Marquard 

0 

0 

0 

1 

Moemaneng 

0 

3 

0 

0 

Rural/Farming Area 

0 

0 

5 

0 

Total 

3 

15 

10 

3 


2.5.2 Social Security 

There are a number of Non-governmental Organisations and Community Based Organisations providing welfare 
services in the municipal area. These organisations are strengthened by sector departments, particularly Department of 
Social Development, eitherfinancially orwith complementary programmes. 

Old Age homes are located in Clocolan, Senekal and Ficksburg, whilst Marquard is having a Community Care Centre. 
Provision of higher order social services within rural/farming areas does not exist. These residents must more often be 
satisfied with mobile social services, lower educational facilities, informal recreational facilities and unstructured 
cemetery sites. 

Pension payments points are provided by banks, post offices, some retail shops during working hours. The municipality 
provides community halls in different towns for the normal visitation time of the Department of Social Development staff 
to beneficiaries and in Ficksburg this sector is having an office in the police building in Fontein Street. 

A variety of pension funds and other associated welfare grants exists, though different funds has different payment 
dates, congestion is still prevalent in the beginning of the month at these pay points and the security issue needs to be 
addressed. 

2.5.3 Education 

A number of schools in the rural/farming areas have closed down during the past few years, and the implication of this is 
that there has been a migration of school children to urban schools, particularly the secondary level children. Lack of 
school transport and sometimes forced child labourforces children to leave school at an early age. This statement 
correlates with the level of education in rural/farming areas. 


Area 

Pre-primary 

Primary 

Secondary 

Tertiary 

Special 

Ficksburg 

3 

2 

3 

0 

1 

Caledon Park 

2 

1 

0 

0 

0 

Meqheleng 

15 

5 

3 

0 

0 

Senekal 

2 

2 

1 

0 

0 

Matwabeng 

5 

5 

4 

0 

0 

Clocolan 

2 

1 

1 

0 

0 

Hlohlolwane 

7 

2 

1 

0 

0 

Marquard 

1 

2 

1 

0 

0 

Moemaneng 

1 

2 

1 

0 

0 

Rural 

0 

147 

3 

0 

0 

Total 

38 

169 

18 

0 

1 


Community members have been having some discussion with relevant authorities to establish a Further Education and 
Training facility in Ficksburg atan old sandstone building at the cornerof Lang and McCabe Street. This building used to 

Page 21 of 65 


Section B: Situational Analysis 


be the Ficksburg High School and Boitumelo Secondary buildings, and are presently empty and being utilised by the 
individuals from the Cherry Festival and Cherry Jazz Festival Committees. The buildings belong to the Department of 
Public Works. 


Below is a picture of educational levels within the municipality. 


Level 

Number 

Pre-school 

505 

Grade R-Grade 12 

31 390 

Special school 

100 

Further Education and Training 

350 

Other colleges 

179 

Universities and other Higher Educational Institutions 

720 

Adult Basic Education and Training 

674 

Kha Ri Gude 

114 

Home Based Schooling 

78 

Unspecified 

0 

Not Applicable 

78 489 

Total 

112 599 


2.5.4 Public Safety and Security 

There are four police stations, one in each town, I mobile police station, two border post station, one in 
Ficksburg/Maputsoe Bridge and one in Clocolan/Peka Bridge and one Cluster Command Centre in Ficksburg servicing 
the whole municipal area. There are no satellite office in the former townships and the rural/farming areas within the 
municipal area. 

Given the vast nature of the vast and extensive nature of the rural/farming area, which is in extent of 5 796.98 km^ of the 
5 948.35 km2 allocated to the municipality, satellite offices need to be established to enhance; 

• Police visibility within the areas 

• Turnaround time to reach crime scenes 

• Availability of police to attend minor cases 

Security is very tight in all towns because of the proximity of the municipality to the international border and it being in 
the centre of the Free State and South Africa. The municipality is having the Clocolan/Peka Bridge, the 
Ficksburg/Maputsoe, which is the second busiest port of entry after OR Tambo International Airport and gateway to 
Katse Dam, as well as the N5 in Senekal which is at the heart of the Free State, everybody, every vehicle passes 
through this area on their way to either, Cape Town, Durban and/or Lesotho. 

The following structures assist the police and the army to deal with crimes along the borderlines: 

• Cross Border Committee 

• District Liaison Committee 

Below is the spread of police stations in the area: 


Page 22 of 65 


Section B: Situational Analysis 


Area 

Police Station 

Border Post Station 

Cluster Command Centre 

Mobile Police 

Clocolan 

1 

1 

0 

0 

Hlohlolwane 

0 

0 

0 

0 

Flcksburg 

1 

1 

1 

0 

Caledon Park 

0 

0 

0 

0 

Meqheleng 

0 

0 

0 

0 

Senekal 

1 

0 

0 

1 

Matwabeng 

0 

0 

0 

0 

Marquard 

1 

0 

0 

0 

Moemaneng 

0 

0 

0 

0 

Total 

4 

2 

1 

1 


2.5.5 Public Open Space System 


All formallsed recreatlonal facllltles are owned by prlvate companles wlthln the munlclpallty. Those belonglng to the 
munlclpallty are not formallsed and are In a very bad sltuatlon. Exlstlng recreatlonal facllltles are In a dllapldated state 
and are not belng malntalned by the munlclpallty. 


2.5.5.1 Ficksburg/Meqheleng 


Private 

Municipality 

18 hole golf course 

Hennle De Wet Stadlum ( Rugby, Crlcket, Tennls Courts, Hockey and Swlmmlng Pool) 

Bowllng Course 

Manle Fourle Stadlum 

Meulsprult Dam 

Caravan Park 

Meqheleng Hollday Resort 

Parks 

Meqheleng Sport Stadlum-under constructlon 


The hollday resort was bullt many years ago and Is been vandallsed. 


2.5.5.2 Clocolan/Hlohlolwane 


Private 

Municipality 

Golf Course 

Caravan Park 

Sport Stadlum 

Parks 


2.5.5.3 Marquard/Moemaneng 


Private 

Municipality 


Show Grounds 


Stadlum 


Parks 


Swlmmlng Pool 


Tennls Courts 


Squash Courts 


9 hole Golf Course 


Page 23 of 65 


Section B: Situational Analysis 


2.5.5.4 Senekal/Matwabeng 


Private 

Municipality 

Stadium 

Caravan Park 

Golf Course 

Squash 

Matwabeng Boere Park 

Bowling 

Tennis 


Planned sites for recreational and sport are found in all areas within the urban centres of the municipality. The trend is 
that the facilities in the former town areas are better developed although not adequately maintained and the facilities in 
the former township areas poorly developed or not developed at all. 


2.6 Economic Profile 


Gross geographic Product Sector 

Contribution per Sector 

Agriculture 

179 082 

Mining 

111 

Manufacturing 

44 450 

Electricity/Water 

7 929 

Construction 

2 769 

Trade 

117 394 

Transport 

22 848 

Finance 

118 939 

Community 

6 574 

General Government 

98 870 

Other Producers 

15 276 

Total 

614 242 


2.6.1 Number of persons and sectors employed: 


Sector 

Persons Employed 

The formal sector 

14 435 

Informal sector 

2 885 

Private Household 

3 997 

Do not know 

603 

Not applicable 

90 679 

Total 

112 599 


2.6.2 Employment levels: 


Status of Employment 

Numberof Persons Employed 

Percentage 

Employable Populatlon 

Employed 

21 493 

31% of the employable population 

69 889 

Unemployed 

11 918 

17% of the employable population 

69 889 

Discouraged 

5 367 

8% of the employable population 

69 889 

Not Economically active 

31 111 

44% of the employable population 

69 889 

Not Applicable 

42 710 

38% of the total population 

112 599 

Total 

112 599 

62% employable populatlon 

69 889 


Page 24 of 65 


Section B: Situational Analysis 


2.7 Sport 

The following sporting codes are active within the municipal area and they need to be encouraged so as to have a 
health citizenry. 

2.8 Boxing 

This sport is very popular in Ficksburg and has produced a South African Champion in January 2014, although the town 
is having only one boxing club and about ten professional boxers as well as numerous amateur boxers. However lack of 
sponsorship and development is diminishing interest in this code. 

2.9 Tennis 

This sport used to be practiced by young and old within the entire municipal area and has died due to lack of facilities 
and development. In the former towns the existing facilities are not maintained well enough to encourage participation in 
this sport and these facilities need to be revived and new ones developed. 

2.10 Soccer 

Undisputed the most loved game in the municipal area, the District, the Province and the whole of South Africa. There 
must be a vision to have a least one or two teams from this area representing the municipality in the Mvela and ABC 
Motsepe League in the next three years. This will have to be done by introducing the Setsoto Soccer League within the 
next twelve months. Relevant stakeholders shall have to be involved in the meantime to look at the realisation of this 
programme. 

2.1 1 Other Sporting Codes 

All other sporting codes also need to be accommodated in the planning cycle of the municipality so that we have an 
Integrated Sporting Programme for the municipality that encompasses everyone and every corner of the municipal 
boundary. 

2.12 Arts and Culture 

There is no doubt that talent is in abundance within our municipality, but we have been unable to unearth and take it to 
greater heights, this in turn has affected our municipality negatively within the tourism industry. The foliowing is with 
mentioning regarding the above: 

• The Heritage Day every September 24*^ 

• The Cherry Jazz Festival in Ficksburg 

• The Main Cherry Festival in Ficksburg 

2.13 Spatial Analysis 

The main roads passing through the municipality and carrying the highest volumes of traffic through the municipality are: 

> N5 through Senekal 

> R26 past Clocolan and through Ficksburg 

> R707 past Marquard joining N5 

> R70 between N5 and R26 


Page 25 of 65 


Section B: Situational Analysis 


The N5 have recently been upgraded, all the other roads needs urgent upgrading and routine maintenance. The R26 
links the municipality with Gauteng, Kwazulu-Natal, Eastern Cape and Lesotho. The R707 intersect with R26 at Clocolan 
and N5 at the intersection between Senekal and Winburg. 

Ficksburg is having two access points into the R26 and Moemaneng has one two access road into the Winburg- 
Ciocolan and Senekal-Marquard respectively. N5 travels through Senekal. Most of the roads in all the towns are gravel 
roads with a few being tarred and paved. 

2.13.1 Roads of National Importance 

> N5 

> R26 if N8 can be extended beyond Ladybrand-Maseru intersection to Bethlehem. 

2.1 3.2 Road of Provincial Importance 

> R708 between Clocolan, Marquard and Winburg 

> R707 between Senekal and Marquard 

> R26 between Ladybrand, Clocolan, Ficksburg, Fouriesburg and Bethlehem 

> R70 between Ficksburg, Rosendal and Senekal 

2.13.3 Roads needing upgrade 

> Portion of S7 from Ciocolan linking with S9 

> S366 between Clocolan and Peka Bridge Border Post 

> Completion of S67 between Senekal and Ficksburg 

2.14 Rail 

All four towns in the municipality are linked with a railway passing through the Free State. The secondary railway line 
between Bloemfontein and Durban passes to the west of Ficksburg. The Ficksburg station is situated North-West of the 
Central Business District and road linkage between the towns and the railway station is excellent. 

The railway line between the Ficksburg and Fouriesburg is developed privately for commercial farming and leisure 
purposes (Sandstone Estates). The existing railway lines serve Marquard and greater emphasis should be placed on its 
potential to stimulate growth in this area. There are two railway lines that pass through Senekal, one railway links the 
industrial area in Senekal and Marquard. 

2.15 Air 

The Maluti airport is situated approximately five kilometres from Ficksburg n the R26 to Fouriesburg. The airport has a 
one fourth of a kilometre runway and air traffic ranges between twenty-five to eighty flights monthly. This is the airstrip 
the former President of South Africa, Flonourable Dr Nelson Mandela used en route to Lesotho in 1997. 

The landing strip in Senekal is being maintained whilst in Marquard has deteriorated to such an extent that it is not used 
anymore. There need for such a facility is also limited. A privately owned airport is available at Sparta in Marquard. 

2.1 6 Land Uses and Settlement Patterns 

Only the main land uses will be discussed. More focus will be given to additional land uses and patterns in the Spatial 
Development Framework, contained in this document as Annexure F 

Page 26 of 65 



Section B: Situational Analysis 




Town 

Number 


Ficksburg/Meqheleng/Caledon Park 

13 621 

Senekal/Matwabeng 

9 387 

Marquard/Moemaneng 

4 460 

Clocolan/Hlohlolwane 

6 219 

Total 

33 687 





Types of Dwellings 

Number 


House or brick/concrete block-structure on a single stand 

22 643 

Traditional dwelling/hut/structure made of traditional material 

911 

Flat or apartment in a block of flats 

434 

Cluster house in complex 

65 

Townhouse (semi-detached house in a complex) 

101 

Semi-detached house 

41 

House/room/flat in backyard 

323 

Informal dwelling (shack in backyard) 

2 473 

Informal dwelling ( shack not in backyard; e.g. in an informal/squatter settlement or on a farm 

6 481 

Room/flatlet on a property or larger dwelling/servants quarters/granny flat 

39 

Caravan/tent 

10 

Other 

166 

Total 

33 687 


The housing backlog in terms of the above figures is 9 5993 which need to be addressed in the next two years. 

2.16.1 Household Head by Gender 



Gender 

Number 


Male 

18 056 

Female 

15 632 

Total 

33 687 


2.16.2 Household by Tenure 



Type 

Number 


Rented 

6210 

Owned but not yet paid off 

2917 

Occupied rent free 

6 035 

Owned and fully paid off 

17 959 

Other 

566 

Total 

33 687 


Page 27 of 65 



Section B: Situational Analysis 

2.16 Energy 

2.16.1 For lighting and cooking 



Type 

Number 


Electricity 

29 850 

Gas 

29 

Paraffin 

374 

Candles (not a valid option) 

3 292 

Solar 

67 

None 

174 

Total 

33 687 


The electricity provision backlog is currently at 3 936 household which should be included in the SDBIP for addressing in 
the next two financial years. 

2.17 Sanitation 


Type 

Number 


Flush toilet connected to sewerage system 

19 076 

Flush toilet with septic tank 

1 482 

Chemical toilet 

185 

Pit toilet with ventilation 

1 562 

Pit toilet without ventilation 

1 792 

Bucket toilet 

7 841 

None 

1 3 77 

Other 

373 

Total 

33 687 


Total bucket backlog as per the above figures is 14 612 if all toilets are connected to the sewerage system. 

2.18 Refuse Removal 



Type 

Number 


Removed by local municipality/private company once a week 

18 534 

Removed by local municipality/private company less often 

841 

Communal refuse dump 

808 

Own refuse dump 

10 961 

No rubbish disposal 

2 323 

Other 

220 

Total 

33 687 


The foliowing numberof households received this service less often than the required standard: 15 153. This situation 
needs to be addressed in line with the Fleet Acquisition Plan of the municipality. 

Page 28 of 65 


Section B: Situational Analysis 


2.19 Water 


Type 

Number 

Water connected to a household 

29 567 

Borehole 

2 502 

Sprlng 

143 

Raln WaterTank 

105 

Dam/Pool/Stagnant water 

153 

Rlver/Stream 

48 

Water Vendor 

288 

WaterTanker 

608 

Other 

273 

Totai 

33 687 


The total of 4 120 households are stlll not connected and thls need to be Included In the SDBIP of the Englneerlng 
Department for the 2014/2015 and beyond. 

2.20 Business 

2.10.1 Ficksburg 

The area provldes the followlng land uses for buslness wlthln the Central Buslness Dlstrlct: 

• Retall and wholesale 

• Professlonal Servlces 

• Flnanclal Servlces 

• Accommodatlons 

• Entertalnment 

• Admlnlstratlon 

• Informal Trade 

A secondary buslness node can be found at the Border Post. Buslnesses found at thls place Include petrol statlons, 
llquor stores, llght Industrles, taxl rank, butcherles and wholesale stores. 

2.20.2 Ciocoian 

Opposed to the orlglnal plannlng, the Central Buslness Dlstrlct of the town Is now wlthln the walklng dlstance of for the 
communlty In the townshlp. Buslnesses In Hlohlolwane are mostly Informal. Future buslness development must focus In 
a more central locatlon to Hlohlowane and Clocolan, so that communltles can access these facllltles easlly. Land Is 
avallable for thls purpose and the necessary plannlng and rezonlng should be done to accommodate thls Inltlatlve. 

2.20.3 Marquard 

Marquard has a well-deflned Central Buslness Dlstrlct along the major access streets servlng Marquard and 
Moemaneng, but there Is no formal Central Buslness Dlstrlct planned for Moemaneng. There are one hundred and three 
buslness sltes In Marquard and thlrty-elght In Moemaneng. 


Page 29 of 65 


Section B: Situational Analysis 


Moemaneng is serviced by the businesses that have developed along the major collector streets. The truck stop on the 
Winburg-Marquard-Clocolan road has a major potential for business agglomeration for the future and the access street 
linking Marquard and Moemaneng has opportunities for business development. 

2.20.4 Senekal 

The Central Business District of the town can be broadly defined between Hoog-Water, Kort and Van der Walt Streets. 
The business component of Matwabeng is poorly developed and consists of local order businesses (corner shops) that 
are attributed throughout the residential areas. 

2.21 Industries 

2.21.1 Ficksburg 

The industrial area is situated adjacent to and north east of the Central Business District. It is clear that Ficksburg 
railway station and railway sidings formed the backbone of the industrial area. Prominent land uses within the industrial 
area include grain silos, food processing plants, a clothing factory, wholesale, panel beaters and abattoir. A secondary 
light industrial area is situated at Van Soelen Street/Terror Lekota Drive intersection at the entrance to Meqheleng. 

Some industries also take place in the Central Business District. 

2.21.2 Clocolan 

Only one industrial area exists in Clocolan, it is situated on the eastern side of the town, its location was determined to a 
large extent by the railway line, which can still be a large benefit to this area. Only a small percentage of these sites are 
occupied. No future spatial impact is predicted and the area is very accessible with vehicles and rail but a bit far from 
Hlohlolwane where potential labour is situated. 

2.21.3 Marquard 

Marquard does not have an industrial area like other towns within the municipality. The area towards the silos and 
railway has been developed with land uses that can be associated with industrial activities, like and auction kraal and 
silo. However, small light industries have developed along the majoraccess road to Marquard as part of the business 
corridor. This trend will continue and should be encouraged, especially along the connector road with Moemaneng. 
Moemaneng has two light industries that have been developed. 

2.21.4 Senekal 

The industrial area is located between Senekal and Matwabeng and is quite central towards both areas, and could be 
extended towards Matwabeng and along Johan Du Plessis Street towards the Senekal-Bethlehem road, although 
development will be limited due to the restriction of the refuse dumping site. 

In Matwabeng a light industrial area could be established between Zone 4 and the proposed provincial road as planned 
as per the proposal in the 1989 Matwabeng Structure Plan, which also found that planning should be done to create the 
entities as needed for light industrial purposes. 

2.22 Cemeteries 

In rural or farming areas, there are no formalised cemeteries and family members are dependent on the approval of the 
landowner for the burial of their deceased. The burial costs are also very high when the burial is to take place in the 
cemeteries in the urban areas. 

Page 30 of 65 


Section B: Situational Analysis 


For this reason, the municipality should plan cemeteries that are within close proximity to rural or farming areas and this 
should be rural service centres. Depending on the proximity of the rural service centres, centralised cemeteries can be 
developed in orderto serve more than one rural orfarming area. This possibility need to be investigated. 

A new cemetery to the southernmost part of Meqheleng has been developed and is functioning well. There are two 
cemeteries in Ficksburg of which one is full and the other one has sufficient capacity for approximately three years and it 
is being utilised by all the people to promote integrated sub-cemeteries. 

2.23 Natural Resources 

Natural resources in the area are limited to vast sandstone formations that hold significant mining potential and 
abundant water for the Caledon River and Meulspruit Dam, Laaispruit and Willem Pretorius Dams. The area is relative 
mountainous especially along the eastern parts closer to Lesotho. 

Other natural resources include fertile agricultural land, grass that can be used for thatching, natural herbs and a good 
climate. There are fossils found in Senekal during the excavation of the solid waste disposal site which needed to the 
explored further, there is also a diamond mining potential in Marquard. 

2.24 Environmentally Sensitive Areas 

All natural areas along streams, watercourses, rivers, dams and very scenic mountain areas southern part of the 
municipality. 

2.25 Agriculture 

The municipality forms part of the most fertile agricultural areas in the Free State due to the soil quality and wonderful 
climate. Although all types of different farming activities occur throughout the area, it appears as if livestock farming is 
more evident in the central and western parts of the municipal area, whilst crop farming is more evident in the northern 
and eastern parts. 

2.26 Tourism Development 

The tourism potential of the municipality has yet to be explored to its fullest. Many areas can be identified for this 
development, currently most focus is on eco-tourism but more tourism corridors can be explored as the industry 
develops. The municipality forms part of the most picturesque and scenic areas of the Free State, mostly along the 
southern parts bordering Lesotho. 

Due to the fact that the municipality cannot operate in isolation from the neighbouring municipalities and towns, the 
following primary and secondary tourism corridors are identified: 

• Primary Corridor- Clarens, Fouriesburg, Ficksburg, Marquard and Winburg 

• Secondary Corridor-Senekal, Marquard, Ficksburg and Rosendal 

It is also proposed that each of the respective towns be earmarked as tourism nodes together with other areas of 
significance. 


Page 31 of 65 


Section B: Situational Analysis 


2.27 Farming 

Commonage development needs to be encouraged in all the towns within the municipality and the following areas have 
identified: 

• Ficksburg- West of Meqheleng 

• Clocolan-East of the road to Excelsior 

• Marquard-around the show grounds and the south-eastern part of the town 

• Senekal- non-existence 

However, no formal small scale farming development has taken place although some planning has been done for 
intensive horticulture and dairy. A need for small scale farming opportunities exists within the municipality and 
opportunities need to be created to assist the community with skills, training and funding. 

The farm lands within the municipal area are mainly used for commercial farming practices. Different farming types are 
found in throughout the area, namely; 

> Cropfarming; and 

> Stock farming 


Page 32 of 65 


Section C: Development Strategies 


3. Strategies 

3.1 Long term growth and development goals 

The development priorities as identified in the previous section serves as the primary input to the strategies phase that 
provides generai direction in guiding strategy formulation and decision making over a medium term. Prior to proceedings 
with the ways and means of solving development related problems, it was firstly necessary to establish common ground 
in respect of the desired future, resulting in a clear and shared vision statement for the municipality over the remaining 
term of office of current council. 

With the shared vision statement firmly in place as a foundation for development, it was possible to proceed with a more 
detailed step focusing on key issues which are critical factors that have an impact on a specific development issue and 
also specifies the cause for the current state of the development priorities. 

With the stated concerns in mind, the issues were transformed into specific medium term predetermined objectives 
which are statements of the desired outcomes or benefits to be delivered within the remaining term of office of the 
current council, aimed at realising the vision. 

The next step was to create an understanding of the applicable national and provincial legislative and policy context 
influencing development and local decision making. Consequently a set of localised strategy guidelines was formulated 
for addressing issues of common interests in a coordinated manner throughout the entire district, province and country. 

The localised strategy guidelines provided the general direction in ensuring that the predetermined objectives could be 
transformed into a purposeful, action-orientated statement of intent and strategies. These strategies are means of 
solving the problems by considering available resources, suggesting alternative solutions and choices as well as 
maximising opportunities. 

Two types of strategies are distinguished, namely; 

> Financial strategies; and 

> Development related strategies 

Finally, after reaching consensus on all the predetermined objectives, several intended projects were identified for 
implementation. 

3.2 Municipal Vision 

Focusing on the identified needs, deveiopment issues, priorities and predetermined objectives that are aligned to the 
National Development Plan, the common aspirations and local identity of all concerned parties which gives a form of a 
picture of the “preferred future”, a statement that describes how the future will look like if the municipality achieves its 
ultimate aims and is reflected in the following shared vision statement that drives us towards a compelling future, 
preferably 2030, that is to the benefit of all our citizenry within the Setsoto Local Municipality: 

“4 unified, viabie and progressive municipaiity” 

3.3 Municipal Mission Statement 

A variety of activities and services to the residents of the municipality on a continuous basis. What is shared amongst us 
is a strong sense of mission that brings approximately one thousand one hundred and fourteen employees together. A 


Page 33 of 65 


statement of the overall purpose of the municipality, it describes what municipality, for whom the municipality do it and 
the ibenef/f they cfer/Ve and is reflected in the following shared mission: 

“to enhance the quality ofiife in Setsoto byserving the needs ofall people through a responsible, economic, 
efficient, sustainable, accountable and developmental system oflocal government” 

3.4 Our Motto 

For our municipality and our existence, the motto that gives us a sense of identity is: 

‘‘Re Sebeietsa Katleho’’ 

We pride ourselves to having top quality and expert professionals who are dedicated to constantly go out of their way to 
providing outstanding services to our communities. Deriving from the vision statement above, the municipality developed 
the following strategic thrusts with the accompanying three pillars: 



Social Cohesion 
Youth and Women 
Empowerment 
Seif-reliance 
Education 
Morai regeneration 
Strong Public Participation 
Promotion of CBOs and NGOs 
to work with reievant 


3.4.1 Values We Cherish 


Financiai Viabiiity 
Good Governance 
Increased Revenue Base 
Assets Management 
Ward Based Payment Incentives 


Formai and Informai Economy 
Investment 
Customer Care 

Revenue Enhancement Strategy 


In order to walk the talk, we commit ourselves to values that will guide us on how we live our mission. These values are 
the foundation of our municipality. Every strategic decision and our daily actions must be in total alignment with our 
guiding values. Our values are: 

3.4.2 Trustand Integrity 

We adhere to the municipality’s values and behave in an honest, ethical, professional and respectful manner, with each 
other and our customers. Our values guide us in every aspect of the work we do, decision we make and actions we 
take. 

Page 34 of 65 



Section C: Development Strategies 


3.2.3 Leadership 

We strive to be at the forefront in all our operations to set example others will wish to follow. We strongly believe in 
personal leadership at all levels of the municipality. 

3.2.4 Quality 

We commit to achieving excellence and the highest quality of work in all ouractivities. 

3.2.5 Teamwork 

We promise unity and cooperation amongst staff, other spheres of government as well as our customers and relevant 
stakeholders, in order to meet the common purpose of achieving the vision, mission, motto and work of the municipality. 

3.2.6 Customer Satisfaction 

We commit to providing the highest level of customer service in order to exceed our customers’ expectations and create 
positive value chain. 

3.2.7 Constant and never-ending Improvements 

We remain flexible and responsive to change and commit to constant and never-ending improvements in every aspect 
of ourwork. 

3.3 Defining Success 

In aligning our predetermined objectives, strategies and priorities to those of the National Development Plan, Free State 
Growth and Development Strategies and the District IDP Framework, and all other relevant plans, we pledge that: 

If today was the year 2030, the following paragraph would be the success story that we would like to tell everyone. As a 
municipality we will focus our collective energy to creating a compelling future that aligns the Integrated Development 
Plan to the National Development Plan, Free State Growth and Development Strategies, Thabo Mofutsanyana District 
Municipality and all relevant plans and their associated goals with the following definition of success: 

‘We pride ourselves on Environmental Leadership. We deliver services for a fairprice as indicated by various 
benchmarks. In our over almost a fifteen years long effort, we have successfully completed a number of environmental 
friendly projects” 

“We are responsibly meeting most ofthe legal mandate and most requirements of developmental local government, and 
further striving to comply fully by June 2014, as we achieve clean audit. In our organisation, developing people is an 
important responsibility. While we are constantly challenged to provide resources fornew services, we are blessed with 
highly resourceful employees who quickly think through creative ways to meet our needs. ” 

“In striving to meet our customers’ needs, we have redesigned the organisational structure to be in line with the current 
trends and legislative requirements. The approved organisational structure focuses on customers and is totally purpose 
driven, outcome oriented and committed to delivering value to our customers. Team work amongst employees, 
communication and collaborations between council, management and could not be better.” 


Page 35 of 65 


Section C: Development Strategies 


“Being a keypoint ofnationai interest, security and safety has aiways been a key focai point in itseif We have safe and 
secure faciiities that protect empioyees, equipment and infrastructure from potentiai danger. Municipai councii, 
management and staffare weii prepared to respond to emergency, whether naturai orman-made.” 

“Our financiai standing is at its best through fiscaiiy responsibie financiai pianning and operations, and the municipaiity is 
buoyed to maintain the highest bond rating.” 

“Finaiiy, we stand for municipai ieadership in aii aspect of our operations. We strive to be fuii service provider and have 
considerabiy increased the numberand scope ofservices to meet the needs of our communities. We have the 
municipaiity with ieadership at aii ieveis. Managers are essentiaiiy one-minute managers-dedicating their efforts to what 
matters most for the municipaiity and continuaiiy deveioping and empowering their subordinates.” 

“Empioyees enjoy coming to work and constantiy perform above expectations. Our staffis more deveioped, weii 
rounded and motivated than ever before. Our reiationships and partnerships with our stakehoiders are at its best. As a 
direct resuit ofautomation and technoiogy, we are now more effective and efficient in what we do-providing sustainabie 
services to the citizenry ofSetsoto Locai Municipaiity.” 

3.4 Predetermined Objectives and Locaiised Strategy Guideiines 

In preparing for the strategy formulation process, it is important to ensure that the general guidelines related to 
crosscutting dimensions are adequately considered when designing strategies and projects are planned. To facilitate 
these requirements, a set of localised strategy guidelines was formulated regarding the following priorities: 

• Spatial Development Framework 

• Poverty Alleviation 

• Gender Equity 

• Environmental Sustainability 

• Local Economic Development 

• Organisational Development and Transformation 

• Good Governance and Public Participation 

• Financial Viability and Management 

• Infrastructure and Service Delivery 

In aligning these localised strategy guidelines to the National Development Plan, Free State Growth and Development 
Strategies, Thabo Mofutsanyana District Municipality’s IDP Framework and Local Government Turnaround Strategy, the 
following issues were then reprioritised into the following five key performance areas: 

1 . Infrastructure and Service Delivery 

2. Local Economic Development 

3. Organisational Development and Transformation 

4. Financial Viability and Management 

5. Good Governance and Public Participation 

The above-mentioned key performance areas were used throughout the process to guide the strategy formulation, 
project identification and integration to ensure smooth alignment at the end. 

Resource Framework and Financial Strategies 

Before the formulation of specific development strategies, a SWOT analysis is done on the organisational readiness to 
embark on such a mission. An investigation is done as to the amount of financial, human, institutional and natural 

Page 36 of 65 


Section C: Development Strategies 


resources which can be made available in implementing activities in order to achieve the predetermined objectives. A 
Risk Assessment is done on those issues that could hamper the municipality to achieve those predetermined objectives. 

Since the implementation of the strategies will put tremendous pressure on the human and financial resources of the 
municipality, it is important to identify creative and innovative solutions for the coping with the human and financial 
resources constraints. The following strategies were then developed in order to meet the forthcoming challenges: 

• Organisational Redesign 

The municipality embarked on a process of reviewing the organisational structure so that it can meet the current 
challenges and adhere to the legislative requirements. After numerous engagements with unions, staff and councillors, 
council approved a revised structure that will be phased in over a period of three years. 

In terms of the approved structure the workforce is to increase from 731 to 1 1 14 after the filling of all positions over a 
period of three years. In the current and the next financial year only those positions that are critical will be filled, and 
department are to identify which of these are and submit them to council for ratification on a yearly basis. 

• Five Year Financial Plan 

The Plan sets out the resource framework as well as the financial strategies for the municipality and aims to provide 
guidelines in the formulation of development related strategies in a realistic way. These strategies relate to increasing 
revenue, managing assets and improving cost effectiveness of the municipality. 


The budget of the municipality in the financial year 2014/2015 totals . This amount is funded through six 

main funding sources and is allocated to the following seen budgetary votes, namely; 


Source 

Amount 

Property Rates 


Service Charges 


Investment Revenue 


Unconditional Grants 


Conditional Grants 


Own Revenue 


Total 



3.5 Development Strategies and Project Identification 

The formulation and development of related strategies and identification of projects in this section of the planning 
process is also discussed under headings of the development priorities in relation to each predetermine objective. The 
predetermined objectives linked to this section of the planning process are to create continuity in relation to the 
strategies and projects. Each predetermined objective is preceded with a set of key issues as identified during the 
analysis phase. 


Page 37 of 65 


Section C: Development Strategies 


Below is the flow chart of how the development strategy and the localised strategy guidelines were developed. 



Deriving from the above diagram, the following issues we identified and compiled. 


Outcome 9-Output 2 

Municipal Turnaround 
Strategy 

Key Focus Area 

Predetermined Objective 

Strategy 

Improve access to basic 
services 

Access to Water 

Water 

Ensure that good quality 
waterand affordable 
infrastructure available and 
accessible to all 
communities and 
continuous maintenance 
thereof to a high standard 

1 .Maintain adequate bulk supply 
of water to meet the needs of all 
the residents 

2. Ensure that all far workers are 
provided with basic water within 
RDP standards 

3. maintain proper maintenance 
of all water infrastructure and 
equipmentand replacement 
thereof from time to time 

4. Maintain that all infrastructure 
development comply with 
sustainable environmental 
practices 

Ensure adequate clean 
water to all residents at an 
affordable rate 

5. provide all households with a 
metered water connection 

6. Gradually replace all 
conventional water meters with 
prepaid water meters 

Access to Sanitation 

Sanitation 

To ensure access to an 
acceptable sanitation 
system by all households 
that is affordable and within 
the minimum standards 

7. Provide all households with 
acceptable sanitation within the 
RDP standards 

8. Continuously provide and 
maintain sewer networks and 
bucket system in areas where 
poor sanitation conditions are 
evident 


Page 38 of 65 





Section C: Development Strategies 


Outcome 9-Output 2 

Municipal Turnaround Strategy 

Key Focus Area 

Predetermined Objective 

Strategy 

Improve access to 
basic services 

Access to Electricity 

Electricity 

To ensure that electricity is 
made available to all 
residents to improve their 
lives 

9. Provide adequate metered 
electricity connections to all 
residents in conjunction with 

Eskom as well as the installation 
of proper street lighting for 
safety and security 

10. Gradually replaces 

conventional electricity meters 
with prepaid electricity meters 
for all households 

Access to municipal roads 

Roads and 
stormwater 

To ensure a proper road 
and street network 
throughout the entire area 
to the benefit of the 
residents 

1 1 . Surface all bus and taxi route 
in all the towns 

12. Gravel and maintain all 
secondary roads within the 
municipal area 

13. Install and maintain sufficient 
stormwater drainage system to 
prevent deterioration of roads 

Public Transport 

To have an improved 
public transport system to 
benefit all residents 

14. Make land available and 
develop accessible public 
transport facilities 

School Transport 

IS.Provide school children in rural 
areas with bicycles and facilitate 
training on road safety 

Access to refuse removal and 
waste disposal 

Waste disposal 

To have an efficient waste 
disposal system, which is 
safe and effective 

16. Provide sufficient waste 
disposal sites will neither 
negatively affect the 
environment nor any 
residential areas 

17. Provide a regular, healthy and 
effective refuse removal 
services in all areas 

18. Investigate and introduce 
effective waste recycling 
methods 

Actions supportive of 
human settlement 

Access to cemeteries 

Cemeteries 

To have sufficient land for 
the burial of the deceased 

18. Adequate provision of cemetery 
development and maintenance 
thereof 

Formalisation of informal 
settlement 

Housing and Land 

Use 

To have adequate serviced 
land available through which 
residents can develop quality 
formal housing and receive 
securityoftenure 

19. Make serviced land available for 
formal housing development 
projects 

20. Facilitate the process of 
obtaining sufficient housing 
subsidies and additional funds 
for housing construction 

21 . Assist relevant government 
department in providing 
farmworkers access to 
permanent and affordable 
housing with security of tenure 

22. Implement an effective quality 
control system pertaining to the 
construction of houses 

24 Implement an effective land use 
system 


Page 39 of 65 


Section C: Development Strategies 


Outcome 9-Output 2 


Municipal Turnaround Strategy 


Key Focus Area 

Predetermined Objective 

Strategy 

Tourism 

Development 

To create sustainable 
economic growth and 
alleviate poverty by 
maximising local agricultural, 
tourism and industrial 
opportunities and 
exploitation of international 
export markets 

25.Compiling and implementing a 
comprehensive marketing 
strategy 

26. Establishment of tourism fora 

27. Encourage and support the 
development of cultural tourism 



28. Mobilising local talented people 
to become involved in tourism 
activities and art festivals 

29. Facilitate the establishment of 
local tourism information centres 
throughout the area 

30. Ensure a cleaner natural 
environment through stimulating 
and conducting of eco- 
educational programmes to 
sensitise residents regarding 
environmental conservation 

Agricultural 

Development 

To have sufficient land 
available for use by 
emerging farmers and to 
ensure self-sustainability of 
emerging farmers through 
education and skills training 

31 . Make municipal land and 
services available that is 
affordable to the residents with 
low tax base to inspire farming 
activities 

32. Give guidance and skills training 
to emerging farmers which will 
lead to job creation 

Local industries and 
businesses 

To ensure that agricultural 
sector makes a larger 
contribution to the 
economy=y through value 
adding agri-processing 
enterprises 

33. Conduct proper resource audit 
and systematic analysis so as 
to identify key agricultural 
products that can be processed 
locally 

34. Encourage the development of 
agri-processing industries 
through an incentive policy in 
respect of land and services 

To have a well-balanced and 
established light industrial 
and small business sectoras 
a stable contributor towards 
creating employment 
opportunities 

35. Assist potential entrepreneurs in 
product development and 
marketing 

36. Facilitate the establishment of or 
re-activation of business fora 

Local Industrial 
and Businesses 

To have a well-balanced and 
established light industrial 
and small business sectoras 
a stable contributor towards 
creating employment 
opportunities 

37. Make land and services 
available and assist in the 
establishment of small business 
centres 

38. Identify and encourage potential 
entrepreneurs to become 
involved in SMME development 
and other business initiatives 
within the framework of available 

resources 

39. Develop and implement training 
and mentorship programmes 
amongst previously 
disadvantaged people with the 
assistance of voluntary 
organisations 


Implementation of 
Community Works 
Programme 


Local Economic Development 


Page 40 of 65 


Section C: Development Strategies 


Outcome 9-Output 2 

Municipal Turnaround Strategy 

Key Focus Area 

Predetermined Objective 

Strategy 




To have an educated and 
cooperative society who 
understands and participate 
in the creation of economic 
conditions conducive to 
attracting investors and 
creating job opportunities 

40. Identify available skills within the 
communities 

41. Encourage local spending by 
residents and prevent the 
outflow of money to other towns 

42. Further develop skills within the 
communities 

43. Encourage households to 
become self-sustainable 

44. Formulate and implement an 
overall local economic 
development strategy for the 
area 

45. Support anchor businesses with 
functional infrastructure and 
effective municipal 
administration 

Implement a 
dlfferentlated approach 
to munlclpal financlng 
and support 

Institutional Development 

Personnel 

Administration 

To maintain effective and 
efficient human resources 

46. Promote effective and efficient 
personnel administration 

Skills Development 

Workplace Skills Plan 

47. Provide effective training and 
capacity building to councillors 
and officials 

Employment Equity 

Representative Workforce 

48. Ensure equity in employment 
opportunities for all employees 

Occupational Health 
and Safety 

Health workforce 

49. Promote total well-being in the 
workforce 

Labour Discipline 

Code of Collective 

Agreements 

50. Maintain a disciplined workforce 
through the application of 
disciplinary procedures 

Administration and 
Council Support 

Effective administration and 
support services system 

51 . Provide effective and efficient 
administration and committee 
support services system 

Improve munlclpal 
flnanclal and 
admlnlstratlve 
capabllltles 

Revenue Enhancement 

Rates and 

Payments of 

Services 

Toincrease the levelof 
service payment to an 
acceptable norm within two 
years 

52. Increase collection rate to 85% 

53. Implement Credit Control and 

Debt Collection Policy to the 
latter 

54. Implement Indigent Subsidy 

Policy to the latter 

55. Gradually replace conventional 
meters for water and electricity 
with pre-paid meters 

56. Introduce incentive scheme 
regarding arrear amount on 
municipal services 

57. Educate and motivate 

consumers on the importance of 
accepting responsibility for the 
payment of services 

Deepen democracy 
through a refined ward 
committee model 

Broader public participation and 
plans 

Communication 

To have an adequate 
communication systems in 
place 

58. Develop Public Participation 
Strateqy 

59. Develop Communication 

Strateqy 

60. Develop Ward Based Plans 

61 . Develop Ward Operational Plan 

Municipal Planning 
and Budgeting 

63. Approve IDP Review Process 
Plane 

64. Schedule Mayoral Budget 
Roadshows and lmbizo 

Fraud and Corruption 

Hotline 

Todevelop reporting 
mechanisms and problem 
solvinq 

65. Install a hotline numberthat 
reports directly to all spheres of 
qovernment simultaneously 


Page 41 of 65 


Section D: Projects 


4. Projects 

4.1 Project identification, prioritisation and costing 

Derived from the identified development strategies and predetermined objectives in the previous section, we formulated 

sufficiently detailed project proposals in order to ensure an executive direction for the implementation of the projects. 
This section therefore, focused on the technical and financial decisions and formed the detailed projects designs needed 
to ensure the link between planning and physical delivery of projects. 

4.2 Detailed Project Design 

In order to ensure smooth implementation of a project, firstly we need to check that such project complies with the 
principles, predetermined objectives and strategies set earlier in the review process. To accomplish this, each project is 
numbered in a unique way so as to indicate which strategies and /or predetermine objectives it aims to achieve. The 
different projects are therefore listed under the heading of its related development priority and numbered in accordance 
with predetermined objectives and strategies, as indicated below. 


Key Performance Area 


T 


Predetermined Objective 


Development Strategy -1 


>1 Project 1 


Project 2 



Project 3 


During the project design process, it is important to design each project in accordance with a standard format to ensure 
uniformity and that everyone understands the output. In order to assist in the further implementation of the projects, a 
logical framework was created, detailing several targets and activity indicators. Below is the process followed in the 
identification, prioritisation and reprioritisation of projects. 


Project predetermined objective(s) 

Describing the expected positive impact of the proposed project and providing 
focus and orientation of the project 

Indicators 

Measurement units, which indicates a certain anticipated outcome of the 
project and useful criterion to measure the progress in the achievement of the 
predetermined objectives 

Output(Project deliverables) 

A tool for implementation management and accountability, output relate to the 
physical and tangible outcome of the project 

Targetgroups 

Indicates how much will be delivered within a specific period and to whom 

Location 

Indication of the physical size and exact location of the proposed project, 
indicating the priority status of different locations 

Activities 

Simultaneous and chronological steps to be taken to make sure that output 
can be achieved 

Timeframes 

Emphasis is put on the milestones that need to be accomplished by a specific 
time to implement a project 

Cost 

Available funding in terms of the approved cash backed budget 


Page 42 of 65 







Section D: Projects 


Project prioritisation 

Listing projects in order of importance according to a set criteria 

Living quality 

Projects impact regarding living standard of communities 

Determination as to whether the outcomes will address a life threatening 
situation in terms of basic needs, improve living standards or simply be 
convenient to the community 

Relevance to the core value 

Evaluation of projects against a set of core issues or underlying causes 

Economic value 

Determination of the impact the project will have on the economy to ensure 
sustainable growth and the improved quality of life 

Dependency ration 

Criteria used to unlocking a series of other projects when implemented, whilst 
others will be strongly dependent on the predecessor 

Probability of achievement 

Subjective evaluation of project against project viability and financial 
availability 


Each project is then designed I accordance with the above criteria, allocated to each Key Performance Area, Project 
Name, Key Focus Area, Predetermine Objective, Key Performance Indicator, Location, Timeframe, Funding and 
Responsibility, as depicted in the following pages. 


Page 43 of 65 


Section D: Projects 


KPA 

Infrastructure and Service Delivery 

Project Name 

Key Focus 
Area 

Predetermined 

Objective 

Key Performance 
Indicator 

Location 

Timeframe and Funding Source 

Department 

2014/2015 

2015/2016 

2016/2017 

Source 

Upgrading of 

Oxidation Ponds 

Sanitation 

Toensurethat 
good quaiity and 
affordabie 
infrastructure and 
services are 
avaiiabie and 
accessibie to aii 
residents and 
maintained on a 
continuous high 
ievei of standard 

Numberof 

Oxidation Ponds 

Marquard/Moemaneng 

12 757 919.78 

1000 000.00 


MiG 

Engineering 

Construction of 
paved road an 
stormwater drainage 
system 

Roads and 
Stormwater 

Toensurea proper 
road and street 
network throughout 
the entire municipai 
area to benefit the 
residents 

3 kiiometre of 
paved road and 
stormwater 
drainage 

Ficksburg/Meqheieng 

3 061 824.10 

14 930 466.18 


MiG 

Engineering 

Senekai/Matwabeng 

2 083 436.40 

6 227 222.34 


MiG 

Engineering 

Upgrading of 
Recreationai and 

Sport Faciiities 

Sport 

Toensurethat 
good quaiity and 
affordabie 
infrastructure and 
services are 
avaiiabie and 
accessibie to aii 
residents and 
maintained on a 
continuous high 
ievei of standard 

Number of Sport 
Faciiities 

Upgraded 

Ficksburg/Meqheieng 

20 710 687.32 

3 000 000.00 


MIG 

Engineering 

Deveiopment of New 
Soiid Waste Disposai 
Site 

Refuse 

Removai 

1 Licensed iandfiii 
site 

Ciocoian/Hiohioiwane 

2 656 955.71 

9 691 624.23 


MG 

Engineering 

Marquard/Moemaneng 

5 803 845.58 

9 757 386,96 


MIG 

Engineering 

Senekai/Matwabeng 

447 204.15 



MIG 

Engineering 

Fencing of aii 

Municipai Properties 

Safety and 
Security 

100% 

Ficksburg/Meqheieng 

1 772 349.25 

93 281.54 


MIG 


Refurbishment of 
Waste Water 
Treatment Works 

Sanitation 

Number of piants 

Ciocoian/Hiohiowane 

4 674 000.00 



DWA 

Engineering 


Page 44 of 65 


Section D: Projects 


KPA 

Infrastructure and Service Delivery 

Project Name 

Key Focus 
Area 

Predetermined 

Objective 

Key Performance 
Indicator 

Location 

Timeframe and Funding Source 

Department 

2014/2015 

2015/2016 

2016/2017 

Source 

Installation of water 
and Sewer Networks 

Water and 

Sewer 

To ensure access 
to acceptable 
sanitation system 
by each household 
that is affordable 
and complies to the 
minimum standards 

1110 

Marquard/Moemaneng 

29 339 840.00 



DoHS 

Engineering 

Furniture and 
Equipment 

Capacity 

Effective 

administration and 
support services 
system 

Numberof 

furniture 

equipment bought 

Administration and 
Support Division 

120 000.00 

0 

0 

Own Income 

Corporate 

Services 


Housing and Council 
Services 

120 000.00 

0 

0 

Own Income 


Human Resources 

1 620 000.00 

0 

0 

Own Income 


Legal Services 

30 000.00 

0 

0 

Own Income 


Office of the Director 
Corporate Services 

600 000.000 

0 

0 

Own Income 


Municipal Manager's 
Office 

53 000.00 

0 

0 

Own Income 

Office of the 
Municipal 
Manager 


IDP/PMS Division 

200 000.00 

0 

0 

Own Income 


Internal Audit Unit 

28 000.00 

0 

0 

Own Income 

Financial 

Management 

New Financial 
System 

Financial Controls 

2 100 000.00 

0 

0 

Own Income 

Treasury 

Services 

Capacity 

Numberof 
furniture and 
equipment 
purchased 

90 000.00 

0 

0 

Own Income 

Sport and Recreation 

25 000.00 

0 

0 

Own Income 

Social Services 

Fleet 

Management 

Vehicle and 
Equipment 

150 000.00 

0 

0 

Own Income 

Safety 

Grounds and 
fencing 

340 000.00 

0 

0 

Own Income 

Capacity 

Numberof 
furniture and 
equipment 
purchased 

Traffic 

200 000.00 

0 

0 

Own Income 

Local Economic 
development 

100 000.00 

0 

0 

Own Income 

Security Services 

120 000.00 

0 

0 

Own Income 


Page 45 of 65 


Section D: Projects 


KPA 

Infrastructure and Service Delivery 

Project Name 

Key Focus 
Area 

Predetermined 

Objective 

Key Performance 
Indicator 

Location 

Timeframe and Funding Source 

Department 

2014/2015 

2015/2016 

2016/2017 

Source 





Office of the Director 
Sociai Services 

300 000.00 

0 

0 

Own Income 


Infrastructure 

Number of roads 

Eiectricity Roads and 
Stormwater Division 

6 500 000.00 

0 

0 

Own Income 

Engineering 

Services 

Capacity 

Numberof 
furniture and 
equipment 
purchased 

Sewer Division 

55 125.00 

0 

0 

Own Income 

Infrastructure 

Upgrade of sewer 
network 


1 525 000.000 

0 

0 

Own Income 

Furniture and 
Equipment 

Capacity 

Effective 

administration and 
support services 
system 

Numberof 
furniture and 
equipment 
purchased 

Office of the Mayor 

50 000.00 

0 

0 

Own Income 

Office of the 
Municipai 
Manager 

Water Services 

Division 

578 812.00 

0 

0 

Own Income 

Engineering 

Services 

Safety 

Grounds and 
fencing 

23 100.00 

0 

0 

Own Income 

Capacity 

Number of 

Projects anaiysed 

Project Management 
Unit 

200 000.00 

0 

0 

Own Income 


Page 46 of 65 


Section E: Spatial Development Plan 


5. Spatial Vision and Application of Principles 

The Vision of the municipality is as follows: 

“A unified, viabie and progressive municipaiity”, 

Given the analysis of the spatial characteristics and the above vision, the following spatial vision can be derived: 

‘To deveiop Setsoto into a piace ofbeauty that recognises its setting comprising of historicai, cuiturai and 
naturai scenic assets that continue to give rise to tourism appeai whiie deveioping its industries around the 
diversity of agricuiturai produce to resuit in a unified and sustainabie municipaiity” 

The implications of the above vision are as follows: 

• The tourism opportunities should be protected and enhanced 
^ Eastern Free State mountain scenery 

^ Historic urban settlements with Victorian sandstone architecture 

^ Basotho (Southern Sotho) regional culture spilling over from ‘the mountain kingdom in the sky’ 

• Agricultural opportunities that should be supported and protected: 

Mixed farming, mainly cattle 
Some maize and wheat 
Cherries around Ficksburg 

• Spatial Planning must ensure that the municipality’s resources, mainly arable land, are not unnecessary 
damaged for their use by another sector, for example, future urban development should not take good 
agricultural land out of production 

• Urban settlement’s should present a high quality image and appearance so that are attractive to visitors and 
residents alike 

5.2 Macro-Conceptual Framework 
5.1.1 Natural System Synthesis 

The natural system analysis in the Status Quo report, influenced by aspects of the Municipality such as the topography, 
vegetation and hydrology gave rise to the conclusion that Municipality comprises two broad bio-regions 

• To the west the ‘Moetlamogale Uplands’ include two settlements, Senekal and Marquard. The countryside is 
undulating with mainly stockfarming and crops, including pastures. 

• To the east, ‘Witteberg mountains’ - hilly mountainous country with dramatic sandstone cliffs and views over 
the Caledon river and the Maloti mountains in Lesotho. 

The land use includes mixed farming with a pattern of pastures and some maize and wheat farming interspersed with 
patches of Vaal- Vet Sandy Grassland classified as Endangered by SANBI. Cherry farming is famous around 
Ficksburg and is the basis of the oldest festival in the country. The watershed that drains the rivers either into the 
Sand River in the northern areas or the Caledon River in the southern areas. 


Page 47 of 65 


Section E: Spatial Development Plan 


Land currently under agricultural cultivation throughout the municipality; 

• South facing slopes which are important climate change refuge areas for to mitigate the impact of climate 
change for both plant and animal life; 

• Steep slopes - generally around Ficksburg and in the southern areas of the Municipality; 

• Endangered Vegetation mainly Mesic Highveld Grassland that can be termed Critical Biodiversity Areas; 

• Rivers, lakes, dams, pans and or vleis. 

• The Willem Pretorius Nature Reserve around the Allemanskraal dam. 

5.1 .2 Socio-Economic and Buiit Environment Synthesis 

. Central Statistical Services figure suggest the population has decreased from 1 09 000 to 1 02 000 between 2001 
and 2007 and DWAF’s figures and the 201 1 Census suggest it had increased to 1 1 3 000 by 201 1 . The main 
reason for this growth is given as due to Ficksburg’s proximity to Lesotho. 

. Certainly, there are substantial industrial estates across the border in Maputsoe with little other development 
rather than low density residential. This suggests that a number of service providers and economic linkages to support 
these factories are across the border in Ficksburg. 

. The settlements are Ficksburg, Senekal, Clocolan and Marquard and serve as the population concentration areas 
of the Municipality. 

. There is an adequate distribution of physical health and education facilities in the towns. It appears, from the size of 
the population that Senekal has more health facilities than what is needed. 

The same applies to all the settlements in regard to educational facilities. However, and notwithstanding 
the above, it appears, given the distance to the health facilities that more facilities are needed at Matwabeng, 
Hlohlolwane and Meqheleng, primary schools are needed at Matwabeng, Marquard and Meqheleng and 
secondary schools are needed at Matwabeng, Meqheleng and Hlohlolwane. (Itshould be noted thatthe 
population figures should be confirmed with the most recent census to confirm this requirement.) 

. Issues in regard to the above facilities relate more to the quality and nature of services rendered and the far 
distances some of the members of the community have to walk to get access to these due to the extremely 
spread out nature of the settlements. 

. Alternatively, local transport opportunities for example cycling should be promoted to enable people to travel further, 
more efficiently and with minimum cost. 

. Access to schools in rural areas remains a challenge. 

. A major issue is the uneven distribution of individual waste water treatment in the urban settlements with significant 
portions of Hlohlolwane (Clocolan), Moemaneng (Marquard) and particularly Meqheleng (Ficksburg). This needsto 
be addressed because the stark differences in access to provision of this service have been one of the contributors 
to service delivery protests. 

. Providing this service in these areas is likely to be a significant financial and engineering challenge and this 

opportunity should be taken to explore other strategies to service provision. Forexample, Bill Gates has recently 
funded a waterless system with similar usage characteristics, see text box. 

. Improvement in access to other urban services particularly roads and storm water management, is also required. 


Page 48 of 65 


Section E: Spatial Development Plan 


Improvement of skills and training is required in both the agriculture and tourism sectors. 


5.2 Sector Gross Value Add Contribution 

• Setsoto agricultural GVA contributions appear to be declining while manufacturing and tertiary economic 
sectors are increasing; 

• This suggests that more value add is occurring to agricultural products and that tourism and financial services 
are on the increase. 

Graph 13: Sector GVA Contribution 


Sector GVA Contribution 


c 

o 


.Q 


c 

o 

o 

0) 

cio 

co 

4-" 

c 

0) 

o 

0) 

Q. 


25.00% 


20.00% 


15.00% 


10.00% 


5.00% 



Kj.yjyj/o 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

■ Local 2001 

18.20% 

0.86% 

10.23% 

1.56% 

1.69% 

15.99% 

8.94% 

18.37% 

12.36% 

11.77% 

■ Local 2009 

11.83% 

1.04% 

17.62% 

3.50% 

2.17% 

13.07% 

6.79% 

21.21% 

11.31% 

11.45% 

■ Distrlct 2001 

10.39% 

0.63% 

12.72% 

2.82% 

2.28% 

14.74% 

8.72% 

17.05% 

14.08% 

16.56% 

■ Distict 2009 

8.17% 

0.79% 

12.54% 

2.41% 

2.43% 

15.54% 

7.21% 

19.38% 

14.33% 

17.19% 


Source: Adapted from data by Quantec Research 
Legend: 

1 . Agriculture, hunting, forestry and fishing 

2. Mining and Quarrying 

3. Manufacturing 

4. Electricity, gas and water supply 

5. Construction 

6. Wholesale and retail 

7. Transport, storage and communication 

8. Finance, insurance, real estate and business services 

9. Community, social and personal services 

10. Government Services 


Page 49 of 65 


Section E: Spatial Development Plan 


5.2.1 Sector Employment Levels 

. The increase in employment in the other sectors mirror their growth in GVA; 

• The apparent extent of the large drop in agricultural employment requires further investigation 


Sector Employment Level 


c 

_o 

"5 

C 

o 

u 

0 ) 

o> 

o 

c 

0 ) 

o 

0 ) 


45.00% 

40.00% 

35.00% 

30.00% 

25.00% 

20.00% 

15.00% 

10.00% 

5.00% 

0.00% 


I Jj J -j ii 


Agricul 

ture 


12001 40.35 


12007 9.40% 


Mining 


0.45% 


0.40% 


Manuf 

acturin 


5.25% 


25.24 


Electri 

city 


0.33% 


1.27% 


Constu 

ction 


2.82% 


6.64% 


Whole 

sale 


11.47 


20.85 


Transp 

ort 


3.42% 


4.75% 


Financ 

e 


3.87% 


11.44 


Comm 

unity 


14.00 


20.02 


Private 


18.03 


0.00% 


Sector contribution to Employment (MPBS, 2012) 

The above shows that the following sectors should be supported as they are important for either their contribution to the 
economy (GVA) or to creating jobs: 

. Finance, Insurance, real estate and business (21 ,21% of GVA); 

. Manufacturing (1 7,65% of GVA); 

. Wholesale and Retail trade (13,07% of GVA); and 
. Agriculture, hunting, forestry and fishing (1 1 ,83% of GVA) 

. Manufacturing (25,2% of the jobs); 

. Wholesale and retail 20,85% of the jobs); and 
. Community, social and personal services (20,02% of the jobs). 

The following sectors, that are showing the best growth, should also be supported: 

. Manufacturing and wholesale and retail (from an employment perspective); and 
. Manufacturing from a contribution to GVA perspective. 

Agriculture, hunting, forestry and fishing reflected a substantial drop in the relative numberof jobs it provided between 
2001 and 2007, i.e. from 40. 35% to 9.40% of all those persons that were employed. 

The unemployment rate is 11.10% (MPBS, 2011) 


Page 50 of 65 


Section E: Spatial Development Plan 


5.3 Broad Spatial Concept 

The following are the main structuring elements: 

• A system of bio-physical corridors and Endangered vegetation in the form of the Mesic Highveld Grassland 
which highlight strategic elements of the municipality - long term resources that need to be conserved as 
well as which could contribute to the municipality’s economy and employment, especially tourism; 

. A major road and transport corridor system that carries the main traffic flows and therefore business opportunities 
through the municipality. The main route is the N5 National Road that connects Winburg along the northern parts of 
the Municipality with Senekal. Along the eastern side of the Municipality the R26 performs a similar function and 
connects Ficksburg with Fouriesburg. 

. Ficksburg as one of the main border posts to Lesotho. 

. The watershed that drains the rivers either into the Sand River in the northern areas or the Caledon River in the 
southern areas. 

The above three main stmcturing elements provide a framework in which other important land-uses are located. These land 
uses and precincts that include: 

. The Willem Pretorius Nature Conservation and the Extensive Agriculture that is practiced around it; 

. The creation of two distinctive bio-regions, namely ‘Moetlamogale Uplands’ and the ‘Witteberg mountains;’ 

. The four main settlements, namely Senekal, Ficksburg, Clocolan and Marquard; 

. Intensive maize and wheat farming throughout the Municipality; and 
. A number of tourist destinations scattered throughout the municipality. 

5.4 Municipal Spatial Development Framework 

It comprises the following elements: 

. Bio-regions; 

. Spatial Planning Categories (SPCs); 

. Settlements and Rural Service Centres; and, 

. Settlement Hierarchy; 

. Major Infrastructure Projects; 

. Major Tourism Projects; 

. Settlement level guidelines. 

5.5.1 Bio-regions 

The Status Quo report Analysis and Synthesis identified two bio-regions that can be distinguished in terms of the natural 
environment and economy. The two bio- regions are: 

. Moetlagamale Uplands; and 

. Witteberg Mountains 

A full Spatlal Development Framework document Is attached to thls document as Annexure F 


Page 51 of 65 


Section E: Spatial Development Plan 



Moetlagamale Uplands 

Witteberg Mountains 

Altitude (m) 

1 200-1 800 

1 400-2 000 

Population 

Senekal 

27 000 

Ficksburg 

40 000 

Marquard 

14 000 

Clocolan 

18 000 

Rural 

7 000 

Rural 

7 000 

Agriculture 

• Poorer soils for arable 
agriculture 

• Senekal is the largest 
centre for agriculture 
followed by Marquard 

• Senekal and Marquard are 
the main maize producers 

• Cattle farming on pastures 
is by predominant product 
followed by maize 

• The Sparta feedlot in 
Marquard slaughters 200 
000 head perannum 

• Better soils for arable agriculture with some 
land suitable for forestry on steeper slopes 

• Cattle farming on pastures is by far the 
predominant product followed by maize 

• Irrigation farming occurs along the Caledon 
river near Ficksburg and Clocolan 

GVA 

Contribution 

R322 

million 

Employment 

11 500 

Tertiary 

Less tourism and more 
agriculture oriented 

Tourism orientated, some border services, 
agriculture, finance and government 

GVA 

Contribution 

1.6 billion 

Renewal energy potential 

Solar- high medium 

Solar- low 

Hydrology 

Draining west to the Sand and 
Allemanskraal dam onto the 
Orange river 

Water shed through centre of bio-region 
draining east to the Caledon river and west to 
the sand and Orange rivers 

Landscape character 

Undulating plains becoming 
more hilly towards the east as 
they rise into the Witteberg 
foothills 

Distinctive and characterful Witteberg 
mountains with profusion of distinctive 
sandstone cliffs and dramatic valleys opening to 
the Caledon riverand the Maluti Mountains in 
Lesotho to the East (union buildings stone was 
quarried here) 


Page 52 of 65 


Section F: Financial Plan 


6. Executive Summary 

The application of sound financial management principles for the compilation of the Municipality financial plan is 
essential and critical to ensure that the Municipality remains financially viable and that municipal services are provided 
sustainably, economically and equitably to all communities. 

The Municipality business and service delivery priorities were reviewed as part of this year’s planning and budget 
process. A critical review was also undertaken of expenditures on noncore and ‘nice to have’ items. Key areas where 
savings were realized were on telephone and internet usage, printing, workshops, accommodation, and catering. 

The Municipality has embarked on implementing a range of revenue collection strategies to optimize the collection of 
debt owed by consumers. Furthermore, the Municipality has undertaken various customer care initiatives to ensure the 
municipality truly involves all citizens in the process of ensuring a people lead government. 

National Treasury’s MFMA Circular No. 70 and 72 were used to guide the compilation of the 2014/15 MTREF. 

The main challenges experienced during the compilation of the 2014/15 MTREF can be summarised as follows: 

• The on-going difficulties in the national and local economy; 

• Aging and poorly maintained water, roads and electricity infrastructure; 

• The need to reprioritise projects and expenditure within the existing resource envelope given the cash flow 
realities and declining cash position of the municipality; 

• The increased cost of electricity (due to tariff increases from Eskom), which is placing upward pressure on 
service tariffs to residents. Continuous high tariff increases are not sustainable - as there will be point where 
services will no-longer be affordable; 

• Wage increases for municipal staff that continue to exceed consumer inflation, as well as the need to fill critical 
vacancies and the implementation of the newly approved staff structure. 

• Affordability of capital projects - original allocations had to be reduced and the operational expenditure 
associated with prior year’s capital investments needed to be factored into the budget as part of the 2014/15 
MTREF process; and 

The following budget principles and guidelines directly informed the compilation of the 2014/15 MTREF: 

• The 2013/14 Adjustments Budget priorities and targets, as well as the base line allocations contained in that 
Adjustments Budget were adopted as the upper limits for the new baselines for the 2014/15 annual budget; 

• Intermediate service level standards were used to inform the measurable objectives. 

• Tariff and property rate increases should be affordable, except where there are price increases in the inputs of 
services that are beyond the control of the municipality, for instance the cost of providing water and electricity. 
In addition, tariffs need to remain or move towards being cost reflective, and should take into account the need 
to address infrastructure backlogs; 

• The new Valuation Roll for the term 2014 till 2018 will also come into effect and will have a non-favourable 
impact on certain categories of users. The impact are limited as far as possible. 

• There will be no budget allocated to national and provincial funded projects unless the necessary grants to the 
municipality are reflected in the national and provincial budget and have been gazetted as required by the 
annual Division of Revenue Act; 


Page 53 of 65 


Section F: Financial Plan 


6.1 Recommendation 

It is recommended that council at its meeting to be held on the 28 March 2014, consider the tabled draft budget 
2014/2015 and adopt the draft budget 2014/2015 and approve the following recommendations: The Council of Setsoto 
Local Municipality, acting in terms of section 24 of the Municipal Finance Management Act, (Act 56 of 2003) approves 
and adopts: 

6.1.1 The annual budget of the municipality for the financial year 2014/15 and the multi-year and single-year capital 
appropriations as set out as follows: 

6.1.2 The financial position, cash flow budget, cash-backed reserve/accumulated surplus, asset management and 
basic service delivery targets are approved as set out below: 

6.1.3 The Council of Setsoto Local Municipality, acting in terms of section 75A of the Local Government: Municipal 
Systems Act (Act 32 of 2000) approves and adopts with effect from 1 July 2014: 

6.1 .3.1 the tariffs for property rates - as set out in 2.6, 

6.1 .3.2 the tariffs for electricity- as set out in 2.6 

6.1 .3.3 the tariffs for the supply of water - as set out in 2.6 

6.1 .3.4 the tariffs for sanitation services - as set out in 2.6 

6.1 .3.5 the tariffs for solid waste services - as set out in 2.6 

6.1.4 The Council of Setsoto Local Municipality, acting in terms of 75A of the Local Government: Municipal Systems 
Act (Act 32 of 2000) approves and adopts with effect from 1 July 2014 the tariffs for other services, as set out in 
paragraph 2.6 respectively. 

In view of the aforementioned, the following table is a consolidated overview of the proposed 2014/15 Medium-term 
Revenue and Expenditure Framework: 


Page 54 of 65 


Section F: Financial Plan 


6.1 Summary of Operating Revenue and Expenditure 


FS191 Setsoto - Table A1 Budget Summary 







Description 

2010/11 

2011/12 

2012/13 

Current Year 2013/14 

2014/15 Medium Term Revenue & 

Expenditure Framework 

R thousands 

Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Originai 

Budget 

Adjusted 

Budget 

Fuii Year 

Forecast 

Pre-audit 

outcome 

Budget Year | Budget Year 
2014/15 1 +1 2015/16 

Budget Year 

+2 2016/17 

Financiai Performance 











Property rates 

23,680 

28,460 

33,195 

26,809 

36,867 

36,997 

36,997 

39,957 

42,554 

45,107 

Service charges 

95,427 

84,357 

101,539 

120,952 

120,952 

- 

- 

130,738 

139,236 

147,590 

Investment revenue 

2,344 

2,365 

- 

600 

1,822 

- 

- 

1,951 

2,078 

2,203 

T ransfers recognised - operational 

135,824 

159,065 

- 

172,835 

173,335 

- 

- 

180,030 

171,091 

162,818 

Other own revenue 

loiai Kevenue (exciuaing capiiai 

transfers and contributions) 

Employee costs 

86,077 

118,529 

278,658 

50,746 

26,822 

- 

- 

40,044 

42,647 

45,206 

343,352 

392,775 

413,391 

371,942 

359,798 

36,997 

36,997 

392,720 

397,605 

402,923 

81,791 

91,547 

120,376 

123,170 

140,305 

- 

- 

146,796 

156,338 

165,718 

Remuneration of councillors 

8,144 

8,020 

11,082 

8,944 

9,378 

- 

- 

9,536 

10,156 

10,765 

Depreciation & asset impairment 

192,384 

192,450 

208,622 

165,501 

49,650 

- 

- 

(0) 

(0) 

(1) 

Finance charges 

2,850 

1,879 

1,265 

1,880 

980 

- 

- 

997 

1,062 

1,126 

Materials and bulk purchases 

42,297 

59,547 

83,260 

54,000 

53,671 

- 

- 

58,242 

62,028 

65,749 

T ransfers and grants 

13,385 

7,894 

8,133 

15,665 

15,386 

- 

- 

9,228 

9,828 

10,417 

Other expenditure 

103,792 

100,617 

164,984 

124,606 

157,082 

- 

- 

149,469 

158,185 

147,676 

Totai Expenditure 

Surpius/(Deficit) 

444,643 

461,955 

597,722 

493,766 

426,452 

- 

- 

374,268 

397,595 

401,451 

(101,290) 

(69,180) 

(184,331) 

(121,824) 

(66,654) 

36,997 

36,997 

18,452 

10 

1,473 

Transfers recognised - capital 

- 

- 

- 

68,887 

79,977 

- 

- 

57,739 

61,492 

65,182 

Contributions recognised - capital & contr 


- 

- 

- 

- 

- 

- 

- 

- 

- 

Surpius/(Deficit) after capitai transfers 

& contributions 

(101,290) 

(69,180) 

(184,331) 

(52,937) 

13,323 

36,997 

36,997 

76,191 

61,503 

66,654 

Share of surplus/ (deficit) ofassociate 

Surpius/(Deficit) for the year 

- 

- 

- 

- 

- 

- 

- 

- 

- 

- 

(101,290) 

(69,180) 

(184,331) 

(52,937) 

13,323 

36,997 

36,997 

76,191 

61,503 

66,654 













Page 55 of 65 


Section F: Financial Plan 


Total operating revenue has grown by 5.6 % or R20.7 million for the 2014/15 financial year when compared to the 
2013/14 Budget. For the two outer years, operational revenue will increase by 6.5 % and 6.0 % respectively. 

Total operating expenditure for the 2014/15 financial year has been appropriated at R374 million and translates into a 
budgeted surplus of R18 million which exclude depreciation for the year 2014/15 that are mainly attributed to the 
revaluation of assets. When compared to the 2013/14 Adjustments Budget, operational expenditure has decreased by 
R2.5 million in the 2014/15 budget. The total surplus will be utilised for capitai spending on infrastructure and movable 
asset acquisition. 

6.2 Operating Revenue Framework 

For Setsoto Municipality to continue improving the quality of services provided to its citizens it needs to generate the 
required revenue. In these tough economic times strong revenue management is fundamental to the financial 
sustainability of every municipality. The reality is that we are faced with development backlogs and poverty. The 
expenditure required to address these challenges will inevitably always exceed available funding; hence difficult choices 
have to be made in relation to tariff increases and balancing expenditures against realistically anticipated revenues. 

The municipality’s revenue strategy is built around the following key components: 

• National Treasury’s guidelines and macroeconomic policy; 

• Growth in the Municipality and continued economic development; 

• Efficient revenue management, which aims to ensure a 80 per cent annual collection rate for property rates and 
other key service charges; 

• Electricity tariff increases as approved by the National Electricity Regulator of South Africa (NERSA); 

• Achievement of full cost recovery of specific user charges especially in relation to trading services; 

• Determining the tariff escalation rate by establishing/calculating the revenue requirement of each service; 

• The municipality’s Property Rates Policy approved in terms of the Municipal Property Rates Act, 2004 (Act 6 of 
2004) (MPRA); 

• Increase ability to extend new services and recover costs; 

• The municipality’s Indigent Policy and rendering of free basic services; and 

• Tariff policiesofthe City. 


Page 56 of 65 


Section F: Financial Plan 


The following table is a summary of the 2014/15 MTREF (classified by main revenue source): 

6.3 Summary of Operating Revenue by source 
FS191 Setsoto - Table A1 Budget Summary 


Description 

2010/11 

2011/12 

2012/13 

CurrentYear 2013/14 

2014/15 Medium Term Revenue & 

Expenditure Framework 

R thousands 

Audited 

Outcome 

Audited 

Outcome 

Audited 

Outcome 

Originai 

Budget 

Adjusted 

Budget 

Fuii Year 

Forecast 

Pre-audit 

outcome 

Budget Year 

2014/15 

Budget Year 

+1 2015/16 

Budget Year 

+2 2016/17 

Financiai Performance 











Property rates 

23,680 

28,460 

33,195 

26,809 

36,867 

36,997 

36,997 

39,957 

42,554 

45,107 

Service charges 

95,427 

84,357 

101,539 

120,952 

120,952 

- 

- 

130,738 

139,236 

147,590 

Investment revenue 

2,344 

2,365 

- 

600 

1,822 

- 

- 

1,951 

2,078 

2,203 

T ransfers recognised - operational 

135,824 

159,065 

- 

172,835 

173,335 

- 

- 

180,030 

171,091 

162,818 

Other own revenue 

86,077 

118,529 

278,658 

50,746 

26,822 

- 

- 

40,044 

42,647 

45,206 

Totai Revenue (exciuding capitai 
transfers and contributions) 

343,352 

392,775 

413,391 

371,942 

359,798 

36,997 

36,997 

392,720 

397,605 

402,923 


In line with the formats prescribed by the Municipal Budget and Reporting Regulations, capital transfers and contributions are excluded from the operating statement, as 
inclusion of these revenue sources would distort the calculation of the operating surplus/deficit. 

Revenue generated from rates and services charges forms a significant percentage of the revenue basket for the Municipality. Rates and service charge revenues 
comprise 43 % of the total revenue mix. In the 2013/14 financial year, revenue from rates and services charges totalled R157.8 million or 44 %. A notable trend is the 
decrease in the total percentage revenue generated from rates and services charges which decreases from 44 % in 2013/14 to 43 % in 2014/15. This decline can 
mainly attributed to the decreased share that the sale of electricity contributes to the total revenue mix, which in turn is due to the percentage increased allowed by 
NERSA for electricity sales. The above table excludes revenue foregone arising from discounts and rebates associated with the tariff policies of the Municipality. 

Operating grants and transfers totals R173 mllllon in the 2013/14 financial yearand increases to R180 mllllon by 2014/15. 

A full Schedule A 2014/2015 Is attached to thls document as Annexure A 

Page 57 of 65 


Section G: Organisational Performance Management System 


7. Introduction 

Performance management is a process which measures the implementation of an organization’s strategy. At the local 
government level, this has become an imperative, with economic development, transformation, governance, financial 
viability and service delivery being the key performance areas in terms of the Local Government Developmental 
Agenda. Performance management provides the mechanism to measure whether targets to meet its strategic objectives 
that are set by municipalities and its employees, are met. National government has also found it necessary to 
institutionalize and provide legislation on the performance management process for local government. 

The Municipal Systems Act (MSA) of 2000 mandates municipalities to establish a performance management system, 
and the Planning and Performance Management Regulations of 2001 outlines the municipality’s performance 
management system. The Municipal Finance Management Act of 2003 (MFMA) require that the 5-year strategy of a 
municipality, the Integrated Development Plan (IDP), must be aligned to the municipal budgetand must be monitored for 
the implementation of the IDP against the budget via the annual Service Delivery and Budget Implementation Plan 
(SDBIP). 

The purpose of this document is to review and update the current framework adopted in 2004, with a view to aligning it 
with current legislative and policy framework. In reviewing the 2004 Policy Framework, efforts have been made to reflect 
the changes that have occurred in local government through the introduction of the 5 Year Local Government Strategic 
Agenda and the five Key Performance Areas that now inform the Revised Municipal Scorecard Model. 

This document will therefore incorporate recently promulgated legislation and policies, currently and an updated version 
of the Municipal Scorecard Model and the 5 perspectives, different levels of scorecards and the relationship of these 
levels, roles and responsibilities of different stakeholders. The revised Policy Framework will also reflect the linkages 
between the Integrated Development Plan (IDP), the Budget, the Service Delivery and Budget Implementation Plan 
(SDBIP) and the Performance Management System (PMS) of the municipality. As required by the Municipal Systems 
Act, 2000 and the Planning and Performance Management Regulations, 2001 . 

This revised Policy Framework sets out: 

o The objectives and benefits of the performance management system; 

o The principles that will inform the development and implementation of the system; 

o A preferred performance model that describes what areas of performance will be measured by the municipality; 

o The process by which the system will be managed; 

o The roles and responsibilities of different stakeholders; and 

o The process of managing employee performance 

7.1 Rationale for Performance Management 

7.2 Policy and Legal Framework 

Legislative enactments which govern performance management in municipalities are found in the Batho Pele Principles; 
the White Paper on Local Government; Municipal Systems Act, 2000; Municipal Planning and Performance 
Management Regulations, 2001; Municipal Finance Management Act 2003; Municipal Performance Regulations for 
Municipal Managers and Managers Directly Accountable to Municipal Managers, 2006; the Framework on Managing 


Page 58 of 65 


Section G: Organisational Performance Management System 


Performance Information and lastly the Directive on Performance Information of the Public Audit Act, 2004 published 
under Notice 646 of 2007. 

Although it is not considered necessary to go into detail in respect of all the legislation it is important to give a brief 
overview of the most important legislative provisions set out in: 

• The Municipal Systems Act No. 32 of 2000 

• The Municipal Planning and Performance Management Regulations of 2001 

• The Municipal Finance Management Act No. 56 of 2003; and 

• The Municipal Performance Regulations for Municipal Managers and Managers Directly Accountable to 
Municipal Managersof 2006. 

Summaries of the provisions relating to organisational performance management are therefore set out hereunder. 

A. The Municipal Systems Act , 32 of 2000 

Chapter 6 of the Municipal Systems Act (2000) provides briefly that a municipality must 

• Develop a performance management system (PMS); 

• Promote a performance culture; 

• Administer its affairs in an economical, effective, efficient and accountable manner; 

• Set Key Performance Indicators (KPI’s) as a yardstick for measuring performance; 

• Set targets to monitor and review the performance of the municipality based on indicators linked to their IDP; 

• Monitor and review performance at least once per year; 

• Take steps to improve performance; 

• Report on performance to relevant stakeholders; 

• Publish an annual performance report on performance of the municipality forming part of its annual report as per 
the provisions of the Municipal Finance Management Act of2003; 

• Incorporate and report on a set of general (sometimes also referred to as national) indicators prescribed by the 
national Minister of Provincial and Local Government; 

• Conduct an internal audit of all performance measures on a continuous basis; 

• Flave their annual performance report audited by the Auditor-General; and 

• Involve the community in setting indicators and targets and in reviewing municipal performance. 

Sections 55 to 58 of the Municipal Systems Act further outline the provisions on the employment and functions of the 
Municipal Manager and Managers directly accountable to the Municipal Manager. 

B. The Municipal Planning and Performance Management Regulations of 2001 

In summary the Regulations provide that a municipality’s Performance Management System must: 

• Entail a framework that describes and represents how the municipality’s cycle and process of performance 
management, including measurement, review, reporting and improvement, wili be conducted; 

• Comply with the requirements of the Municipal Systems Act; 


Page 59 of 65 


Section G: Organisational Performance Management System 


• Relate to the municipality’s employee performance management processes and be linked to the municipality’s 
IDP ; and that: 

• A municipality must: 

o Set key performance indicators (KPI’s) including input, output and outcome indicators in consultation 
with communities; 

o Annually review its Key Performance Indicators; 
o Set performance targets for each financial year; 
o Measure and report on the nine nationally prescribed KPI’s; 
o Report on performance to Council at least twice a year; 
o As part of its internal audit process audit the results of performance measurement; 
o Appoint a performance audit committee; and 
o Provide secretarial support to the said audit committee 

C. The Municipal Finance Management Act, 56 of 2003 (MFMA) 

The Municipal Finance Management Act also contains various important provisions relating to performance 
management. In terms of the Actall municipalities must: 

• Annually adopt a service delivery and budget implementation plan with service delivery targets and 
performance indicators; 

• When considering and approving the annual budget, set measurable performance targets for revenue from 
each source and for each vote in the budget; 

• Empower the Mayor or Executive Committee to approve the Service Delivery and Budget Implementation 
Plan and the Performance Agreements of the Municipal Managers and the Managers directly accountable 
to the Municipal Manager; and 

• Compile an annual report, which must, amongst others things, include the municipality’s performance 
report compiled in terms of the Municipal Systems Act. 

7.3 The Municipal Performance Regulations for Municipal Managers and Managers Directly Accountable to 
Municipal Managers of 2006. 

This legislation regulates the management of the Section 57 employees of a municipality by providing an outline of 
employment contracts, performance agreements, performance plans, employee development and empowerment 
measures and performance evaluation processes. These regulations further provide criteria for performance 
assessment and the 5-point rating upon which performance of an individual need to be scored during the assessment 
and evaluation. 

7.4 Objectives of Performance Management 

The objectives of institutionaiizing performance management are beyond the legislative compliance requirements. The 
general objectives of managing performance are to: 

• facilitate increased accountability; 

• facilitate learning and improvement; 

• provide early warning signals; and 


Page 60 of 65 


Section G: Organisational Performance Management System and Organisational Structure 


• facilitate decision-making processes 

• To serve as a primary mechanism to monitor, review and improve the implementation of the Setsoto municipality’s 
IDP. 

7.5 Principles that will Guide the Development and Implementation of the Performance Management System 

In developing the system, the municipality will be guided by the following principles: 

A. Both development and implementation of the system must be driven by top management and council; 

B. The system must place the community at the centre of the local government processes; 

C. The system should not be punitive, but be developmental to provide iearning and growth opportunities through the 

coaching and review processes. 

D. The system must be developed and implemented within the available capacity and resources of the municipality; 

E. The system should align to other municipal initiatives, systems and processes; and 

The performance management system will be implemented in such a way that it: 

• Is developmental and not punitive in nature as employees will be provided with career opportunities and allowed 
space to be creative and innovative in improving their performance; 

• Provides a clear and detailed framework for: 

o Agreement on performance contracts; 

o Clear key performance indicators, targets and standards which are agreed upon; 
o A balance between organizational needs and employee rights; 

• Provides clear linkages between performance and recognition and reward; 

• Provides a clear guide on dealing with poor or non-performance 

A full Organlsatlonal Performance Management Systems Framework Is attached to thls document as Annexure E 

7.6 Organisational Structure 

7.6.1 Purpose 

The purpose of this process is to review the existing organisational structure and align it with the strategic objectives of 
the Setsoto Local Municipality. It will also be to determine the base for the alignment, revision and or retaining of 
functions and positions as well as conclusions culminate in proposals for the approval of a new organisational structure 
which will also addresses the alignment of functions in a systematic manner, to group functions that related into same 
departments where possible, keeping in mind that all functions and departments are cross-cutting and should therefore 
complement each other. 

7.6.2 Background/Brief Overview 

The Setsoto Local Municipality was established in terms of section 12 of the Local Government: Municipal 
Structures Act, 117 of 1998 as amended. Measuring 5 498 km^, it is situated in the Eastern Free State and forms 
part of the Thabo Mofutsanyana District Municipality. The Setsoto Municipality comprise of four towns i.e. 

Ficksburg: Flead Quarters, Senekal, Marquard and Clocolan. 

The Municipality derives its powers from the Constitution of the Republic of South Africa, Act 1 08 of 1 996, sections 
1 56 and 229; and the Local Government: Municipal Structure Act, 1 1 7 of 1 998 as amended. 


Page 61 of 65 


Section G: Organisational Performance Management System and Organisational Structure 


Recent events, which included community unrest, as well as the poor performance by the municipality both on 
strategic and operational levels, have hindered the municipality’s efforts to deliver on both its constitutional and 
legislative and strategic mandate. 

A report arising from section 106 Commission, which was established by the MEC-Cooperative Governance 
and Traditional Affairs in March 2011, also revealed issues relating to performance and administration which 
amounts to among others:- 

. Poor management and quality control of MIG projects due to a lack of capacity in the PMU unit; 

. Lack of technical capacity to appoint, monitor, assess contractors doing work for the municipality 
and inability to identify early warning signs and act upon such; 

. Poor Supply Chain Management; which unit was found to be 'totally dysfunctional"; 

. Low staff moral due to salary disparities; 

. That a dedicated unit responsible for contract management be established; 

. Disregard by managers and employees of Human resource policies; 

. Lack of knowledge by senior management and staff on waste management, local economic 
development and technical expertise in water, roads and electricity management. 

The Commission in addition recommended that — 

(a) That "the municipality must review and revisit its organizational structure and conduct a 
skills audit to determine its capacity to execute its mandate." 4.4.1 (b); 

(b) Certain officials be "placed" in units where their expertise and previous experience can 
be optimally utilized". 

The Municipal Systems Act, Act 32 of 2000, provides as it relates to the organizational structure of a municipality - 
Section 66 - for the following: 

" 1 . A municipal Manager, within a policy frame work determined by the Municipal Council and subject to any applicable legislation, 
must: 

- Approve a staff establishment for the municipality: 

. Provide a job description for each post on the staff establishment 

. Attach to those post the remuneration and other conditions of service as may be deteimined in accordance with any applicable 
legislation and 

. Establish a processes and mechanism to regularly evaluate the staff establishment and if necessary review the staff 
establishment and remuneration and conditions of service 

Other reference pointsfor the organogram review process were- 

. Local Government: Municipal Planning and Performance Management regulations of 2001 

. Municipal Finance Management Act, Act 56 of 2003 
. Skills Development Act 

. Employment Equity Act. 

. Integrated Development Plan of the Setsoto Municipality. 

. Organogram framework-DPSA 

A full Organlsatlonal Structure Is attached to thls document as Annexure D 

Page 62 of 65 


Section H: Integration 


8. Integration 

8.1 Sector Involvement 

During this phase of the RIDP, true meaning is given to the process of integrated development planning. With the 
designed projects for implementation in mind, the integration phase aims to align these different project proposals firstly 
with specific deliverables from the RIDP and secondly with certain legal requirements. More specifically, the projects 
have to be aligned with the agreed objectives and strategies to ensure transparency as well as with the available 
financial and institutional resources to ensure implementation. 

Furthermore, the projects also need to be aligned with national and provincial legal requirements to ensure uniformity 
and compatibility with government strategies and programmes. The National and Provincial Planning and Development 
Fora played a crucial role in aligning the IDP’s and the Provincial and National development plans and strategies. 
Instead of arriving at a simplified “to do’’ list for the next five years, the aim is to formulate a set of consolidated and 
integrated programmes for implementation, specifically focusing on contents, location, timing and responsibilities of key 
activities. The integration requirements are divided into three broad categories namely: 

• Integrated sector programmes; 

• Internal planning programmes; and 

• External policy guideline requirements 

Integrated sector programmes form the basis for preparing budgets and future sectoral business plans. There are 
currently three sectors that require special sector plans, as indicated below, the outputs of which are not applicable to 
the Local Municipality at present. From the project planning and design sheets it was possible to compile a list of sector 
specific projects from the multi-sectoral IDP projects. The sectoral programmes to projects representing both sector 
components as well as the following department Is within the Municipality: 

a) Department of the Office of the Municipal Manager 

b) Department of Engineering Services 

c) Department of Corporate Services 

d) Department of Treasury Services 

e) Department of Community and Social Security Services 

f) Department of Development and Town Planning Services 

It is important to note that these programmes do not only make provision for IDP related projects but also other project 
costs and activities in order to create a comprehensive picture for budgeting purposes. 

8.2 Internal Planning Programmes 

In order to set up close links between planning and budgeting as well as between planning and implementation, a 
number of internal planning programmes are required. These plans, however, do not only serve as a framework for 
managing finances, but it also sets the groundwork for regular management information in respect of monitoring 
progress and performance. Finally, it also demonstrates compliance of the IDP with spatial principles and strategies and 
which serves as a basis for spatial coordination of activities and for land use management decisions. 

The status and annexure numbers of the relevant internal planning programmes is indicated in the table below. 


Page 63 of 65 



Section H: Integration 

8.2.1 Current status of internal planning programmes 



Plans 

Current Status 

Revision Date 


Annexure A- Budget ( 3 Year Forecast) 

Draft Adopted 

March2014 

Annexure B- 3 year capital Investment Programme 

Work in Progress 

May 2014 

Annexure C-Service Delivery and Budget Implementation Plan 

Work in Progress 

May 2014 

Annexure D- Organisational Structure 

Approved 

February 2014 

Annexure E- Organisational Performance Management System 

Review Draft Approved 

March 2014 

Annexure F- Spatial Development Framework 

Approved 

May 2014 

Annexure G- Disaster Management Plan 

Approved 

May 2013 


8.3 External Policy Guideline Requirements 

In order to complete the integration phase of the IDP, it is necessary to check consistency with policy guidelines of 
certain cross-cutting dimensions. This requires the formulation of several programmes which assess the effect or impact 
of project proposals in relation to poverty reduction and gender equity, environmental practices, economic development 
and employment generation as well as the prevention and spreading of FIIV/ AIDS. The status and annexure numbers 
of the relevant external policy and guideline programmes is indicated in the table below. 

8.3.1 Current status of external policy guideline programmes 


External Policy Guideline Requirements 

Current Status 

Revision Date 


Annexure Fl- IDP Review Process Plan 2012/2013 

Approved 

August 2013 

Annexure 1- Poverty Reduction/Gender Equity Programme 

Work in Progress 

May 2014 

Annexure J- Integrated Local Economic Development Strategy 

Draft Approved 

March 2014 

Annexure K- Integrated Environmental Programme 

Work in Progress 

May 2014 

Annexure L- FIIV/AIDS Programme 

Work in Progress 

May 2014 

Annexure M- Water Services Development Plan 

Work in Progress 

May 2014 

Annexure N- Workplace Skills Plan 

Work in Progress 

May 2014 

Annexure 0- Flousing Sector Plan 

Draft Approved 

March 2014 


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Section I: Approval 


9. Approval 

This document contains the final draft Integrated Development Plan 2014/2015 ofthe Municipality and was formulated 
over a period of seven months, taking into consideration the views and aspirations of the entire community. The IDP 
provides the foundation for development for the next financial year and will be reviewed regularly to ensure compliance 
with changing needs and external requirements. 

9.1 Invitation for Comments 

In order to ensure transparency of the IDP process everybody is given the chance to raise concerns regarding the 
contents of the IDP. All national and provincial departments are firstly given a chance to assess the viability and 
feasibility of project proposals from a technical perspective. More specifically, the spheres of government are 
responsible for checking the compliance of the IDP in relation to legal and policy requirements, as well as to ensure 
vertical coordination and sector, this process will be held from 22"'^ to 25**^ April 2014. 

Since the operational activities of the Local Municipality will have a certain effect and possible impact on surrounding 
areas, adjacent local and district municipalities are also given the opportunity to raise any concerns in respect of 
possible contradicting types of development and to ensure the alignment of IDPs. 

Finally, all residents and stakeholders are also given the opportunity to comment on the contents of the IDP, should they 
be directly affected. The draft IDP is going to be advertised in local newspapers on 2 of April 2014 and all concerned 
parties will be given a period of 21 daysafterthe adoption of the draft IDP 2013/2014 on the 28 of March 2014 until 29 
of April 2014 to forward comments to the Municipal Manager. 

9.2 Adoption 

After all the comments are incorporated in the IDP document, the Council would adopt and approved the document. The 
approved document will be submitted to the MEC: Corporate Governance and Traditional Affairs, as required by the 
Municipal Systems Act, 2000 (32 of 2000). The final draft IDP 2014/2015, together with all the appendices, annexures 
and the Budget 2014/2015 as required by legislation would be approved by Council on the 29 of May 2014. 


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