1. BY THE ACTING MM – NEIL DIAMOND
CITY OF MBOMBELA
PRESENTATION TO KLCBT
16 MARCH 2018
PRESENTED
BY THE ACTING MM – NEIL DIAMOND
MARCH 2018
State of the municipality & departmental key strategic priorities

2. Quote on Local Government
When Ji Xin Ping, President of the Peoples Republic of China was asked how come he always gives such good answers he said:
It is all the years I spent in local government responding to local business people. They asked good questions and that helped me to give good answers.
I hope your questions today will help me to improve my answers
State of the municipality & departmental key strategic priorities

3. Core Mandate of Local Government
What is Local Government
City Government and close to the People
Failures affect people’s lives – real services not policy
Constitutional Mandate Chapter 7 Section 152:
to provide democratic and accountable government for local communities;
to ensure the provision of services to communities in a sustainable manner;
to promote social and economic development;
to promote a safe and healthy environment; and
to encourage the involvement of communities and community organisations
Do this within its Financial and Administrative capacity
State of the municipality & departmental key strategic priorities

4. Developmental Duties of Local Government
Constitutional duties Chapter 7 Section 153:
structure and manage its administration and budgeting and planning;
processes to give priority to the basic needs of the community,
promote the social and economic development of the community;
participate in national and provincial development programmes.
But What does that practically mean?
State of the municipality & departmental key strategic priorities

5. KLCBT Business Breakfast
……. But What does that practically mean?
Local Government need to look after communities needs:
Water, Energy, Sanitation, refuse, but also;
Parks, Cemeteries, Public Safety,
How do we adhere to this Constitutional mandate in Mbombela:
Through plans, policies and procedures
Contained in a strategic document – Vision 2030
State of the municipality & departmental key strategic priorities

6. KLCBT Business Breakfast
VISION 2030
Desired Future Pillars:
(1)Integrated Human settlements;
(2)Competitive Economy,
Integrated Human Settlements:
Mbombela want to align human settlement with public transportation and economic growth:
Be a city where people can work, live and play
State of the municipality & departmental key strategic priorities

7. KLCBT Business Breakfast
VISION 2030
Competitive Economy:
Mbombela want to create and enabling environment
Stimulate economic growth
Support and grow entrepreneurs
Reduce red tape, and
fast track projects with economic benefit
Generate sufficient investment to reduce unemployment
Be a city where people want to work, live and play
State of the municipality & departmental key strategic priorities

8. KLCBT Business Breakfast
VISION 2030 – Strategic Objectives
Spatial Transformation
Economic Growth
Service Provision
Governance
State of the municipality & departmental key strategic priorities

9. KLCBT Business Breakfast
VISION 2030 – Strategic Objectives
Spatial Transformation
Expand City Centres,
develop new urban nodes,
upgrading and formalisation of Trust and Traditional Lands
Economic Growth
Establish a competitive economic position through Economic sector development,
Land Development,
Skills development and
Place Marketing
State of the municipality & departmental key strategic priorities

10. KLCBT Business Breakfast
VISION 2030 – Strategic Objectives
Service Provision
Basic Services
Community Services
Social Services
Governance
Spatial Governance
Financial Governance
IGR & Stakeholder Relations
State of the municipality & departmental key strategic priorities

11. KLCBT Business Breakfast
Future Economy of Mbombela
Tourism
Become the ultimate destination
Safe and Secure environment for Tourists
Township tourism and township economy
Medical Tourism
Agriculture
Mpumalanga Fresh Produce Market (1Bil investment) / AgroProcessing
Commerce
Bulk infrastructure that can underpin Commercial Dev
ICC (link to Tourism)
State of the municipality & departmental key strategic priorities

12. KLCBT Business Breakfast
Current Finances of Mbombela
Liabilities:
1.4Bil Trade Creditors, 700M Commitments
2.1Bil Liabilities
Eskom Acc:
Eskom Acc 247M June Now 102M
State of the municipality & departmental key strategic priorities

13. FINANCIAL RECOVERY PLAN
Funded and Credible Budget
Pillar 1
Budget Restructuring
Pillar 2
Revenue Enhancement
Pillar 3
Efficiency and Sustainability
SERVICE DELIVERY
PILLARS OF FINANCIAL RECOVERY PLAN
State of the municipality & departmental key strategic priorities

14. PILLARS OF FINANCIAL RECOVERY PLAN
Budget Restructuring
Budget Re-alignment (revenue and expenditure)
Realistic and Zero Based Budgeting
Reduction in expenditure on non-essentials (Circular 82)
Reprioritisation of internal Capital expenditure
Review of cost drivers
Review of tariffs
Improve budget ratios (1:1.5)
Compilation of Long-term Financial Plan
State of the municipality & departmental key strategic priorities

15. PILLARS OF FINANCIAL RECOVERY PLAN
Revenue Enhancement
Improve revenue collection
Billing efficiency
Other revenue sources
Meter Audit
Review rebates
Completeness of revenue of all services
State of the municipality & departmental key strategic priorities

16. PILLARS OF FINANCIAL RECOVERY PLAN
Efficiency and Sustainability
Reduce Distribution Losses
Review of funding sources of the capital investment
Stringent cash management
Improve internal financial controls
Review of SCM practices
Fleet and Asset Management
State of the municipality & departmental key strategic priorities

17. State of the municipality & departmental key strategic priorities
Conclusion
Light at the end of the Tunnel
Work with Business
Meet the expectations of stakeholders
Work without Fear or Favour
Officials that have integrity and transparency
Deliver World Class Services
Become a city of Excellence
State of the municipality & departmental key strategic priorities

18. State of the municipality & departmental key strategic priorities
Thank You
State of the municipality & departmental key strategic priorities