A Simple guide to the Municipal IDP, Budget & Service Delivery Budget Implementation Plan (SDBIP)
The Municipal IDP
A five-year plan which a Municipality is required to compile to determine the development needs of the municipality. The 5 year IDP provides an opportunity for the Municipality and community to work together. The IDP is an outcome of consultations with communities, they are the key role players in the IDP process. Every municipality in South Africa is required to produce an Integrated Development Plan, in which the city’s future is mapped over the short, medium and long-term. Issues that are considered include spatial planning, disaster management, finances, performance targets and economic development. The key to the process is “integration” — meaning that all processes are considered in relation to one another.
The IDP is developed within 6-9 months after the newly elected council, after the local government elections. The Municipal Systems Act sec 34, says that a Municipality must develop a “process plan” in drafting its IDP.
The Process of developing a Municipal IDP
Before starting the planning process, The Municipality must draft a IDP Process Plan to ensure the proper management of the planning process, but importantly, to show how community participation will take place. This plan should outline the various structures that will manage the planning process, detail how the public can participate through these structures, a time schedule of the planning process, who is responsible for what, and finally, how will the process be monitored.
Municipal budget
The budget process involves government institutions planning, collaborating, negotiating and deciding together on a comprehensive plan for spending public resources over an agreed period. Section 153 (1) (a) of the South African Constitution emphasizes the importance of preparing a budget that prioritizes the needs of the community. The municipal budget process constitutes five phases: strategic planning; municipal wide budget preparation process; tabling of the draft budget; public consultations (e.g. Ward Committee meetings) and external assessments; and tabling of the final budget.
SDBIP definition
A Municipality is obligated to develop, approve and sign a detailed one-year operational plan known as the Service Delivery & Budget Implementation Plan (SDBIP). Service Delivery & Budget Implementation Plan (SDBIP) is an Operational Plan for a Municipality. The SDIBP must feed into performance agreements between executive authorities and Accounting officers, Executive authority, Executive Mayor, Accounting Officer for the Municipal Administration – Municipal Manager / Acting MM, Accounting Officers for Directorates and Senior Managers or Directors. The SDBIP must provide Quarterly Performance Measures and Targets, as well as Quarterly Budget information.
PHASES OF THE IDP PROCESS TO PRODUCE AN IDP
PHASE 1 ANALYSIS
- During this phase information is collected on the existing conditions within the municipality. It focuses on the types of problems faced by people in the area and the causes of these problems.
- The identified problems are assessed and prioritised in terms of what is urgent and what needs to be done first.
- Information on availability of resources is also collected during this phase.
- At the end of this phase, the municipality will be able to provide:
- An assessment of the existing level of development
- Details on priority issues and problems and their causes
- Information on available resources
PHASE 2: STRATEGIES
- During this phase, the municipality works on finding solutions to the problems assessed in phase one.
This entails: - Developing a vision:
- The vision is a statement of the ideal situation the municipality would like to achieve in the long term once it has addressed the problems outlined in phase one. The following is an example of a vision statement:
- Defining development objectives
- Development objectives are clear statements of what the municipality would like to achieve in the medium term to deal with the problems outlined in phase one.
- For example: Provide access to clean water for all residents living in the informal settlement
Defining development objectives - Development objectives are clear statements of what the municipality would like to achieve in the medium term to deal with the problems outlined in phase one.
- For example: Provide access to clean water for all residents living in the informal settlement
- Development strategies
- Once the municipality has worked out where it wants to go and what it needs to do to get there, it needs to work out how to get there. A development strategy is about finding the best way for the municipality to meet a development objective.
- For example: Cooperate with the Department of Water Affairs to provide one water stand pipe for every 20 households.
Project Identification
Once the municipality has identified the best methods to achieving its development objectives it leads to the identification of specific projects.
PHASE 3: PROJECTS
During this phase the municipality works on the design and content of projects identified during Phase 2.
Clear details for each project has to be worked out in terms of:
- Who is going to benefit from the project?
- How much is it going to cost?
- How is this project going to be funded?
- How long would it take to complete?
- Who is going to manage the project?
Clear targets must be set and indicators worked out to measure performance as well as the impact of individual projects.
PHASE 4: INTEGRATION
- Once all projects have been identified, the municipality has to check again that they contribute to meeting the objectives outlined in Phase 2. These projects will provide an overall picture of the development plans.
- All the development plans must now be integrated. The municipality should also have overall strategies for issues like dealing with AIDS, poverty alleviation and disaster management.
- These strategies should be integrated with the overall IDP.
PHASE 5: APPROVAL
- The IDP is presented to the council for consideration and adoption. The Council may adopt a draft for public comment before approving a finalised IDP.
- SDBIP
- BUDGET
- IDP REP FORUMS
- BUDGET STEERING COMMITTEE
- IDP REVIEW OR AMEND
Contextual Background
Public Participation – Legislative Framework
- The Constitution of the Republic of South Africa, Act No. 108 of 1996, provides for municipalities to encourage the involvement of communities and community organizations in matters of local government to ensure a democratic and accountable government
- White Paper on Local Government, 1998 describes participation by citizens in 4 levels, viz. voters, citizens, consumers, & organised partners
- Local Government: Municipal Structures, Act, No. 117 of 1998 (as amended) Section 7 (e) provides for the enhancement of participatory democracy through the establishment of ward committees in Category A municipalities with sub-councils or ward participatory system, or a Category B municipalities with a ward participatory system
- Local Government: Municipal Systems Act, No. 32 of 2000 (as amended) Section 16 (1)(a) provides for municipalities to develop a culture of municipal governance that complements formal representative government with a system of participatory governance
- National Framework: Criteria for Determining Out of Pocket Expenses for Ward Committee Members, 2009; provides for the performance indicators for ward committee functionality. This includes the functionality indicator in respect of number of community feedback/report back meetings convened by ward committee
- Guidelines for the Establishment and Operation of Municipal Ward Committees, 2005: provides uniform and simplified guidelines to ward committee members, ward councillors and metropolitan and local municipalities on the establishment and operation of ward committees
- Regulations on the term of office of ward committees, 2009, provides for the alignment of term of office of ward committees with municipal councils
- Local Government: Municipal Demarcation Act, No. 27 of 1998, Schedule 1 (section 26) provides for the public notification of determination of municipal boundaries; (section 28) provides for public meetings
- Promotion of Access to Information Act, No. 2 of 2000 promotes a culture of transparency and accountability in public and private bodies by giving effect to the right of access to information
- Promotion of Administrative Justice Act, No. 3 of 2000 gives effect to the right to administrative action that is lawful, reasonable, and procedurally fair
- Government Municipal Finance Management Act, No.56 of 2003 encourages the participation of communities in the finances of the municipalities, including the development of municipal budgets
- Local Government Municipal Property Rates Act, No. 6 of 2004 provides for community participation in the property registration process, property valuation rolls as well as public consultation with regards to the adoption of rates
- National Development Plan, 2011 validates the importance of public participation in fostering development and good governance. Vision 2030 envisages a state that is developmental, accountable, focused on citizen’s priorities and capable of delivering high-quality services consistently and sustainably through cooperative governance
- Batho Pele Principles, 1998 were developed as an initiative to ensure that public office bearers become service orientated, strive for excellence in service delivery and commit to continuous service delivery improvement
Why is it crucial to do an IDP
6 Main Reasons
Effective use of scarce resources
- The IDP will help the local municipality focus on the most important needs of local communities taking into account the resources available at local level.
- The local municipality must find the most cost-effective ways of providing services and money will be spent on the causes of problems in local areas.
- For example, a municipality may decide to allocate resources to building a canal that will prevent homes being damaged during the flood season. This will reduce the financial burden placed on the municipality’s emergency services.
Speed up delivery - The IDP identifies the least serviced and most impoverished areas and points to where municipal funds should be spent. Implementation is made easier because the relevant stakeholders have been part of the process.
- The IDP provides mechanisms to ensure that projects and programmes are efficiently implemented.
- The IDP helps to develop realistic project proposals based on the availability of resources.
It helps to attract additional funds
- Government departments and private investors are willing to invest where municipalities have clear development plans.
Strengthens democracy - Through the active participation of all the important stakeholders, decisions are made in a democratic and transparent manner.
Helps to overcome the legacy of apartheid
- Municipal resources are used to integrate rural and urban areas and to extend services to the poor.
Promotes coordination between local, provincial and national government
- The different spheres of government are encouraged to work in a coordinated manner to tackle the development needs in a local area.
- eg: The Dept of Health plans to build a clinic in an area. It has to check that the municipality can provide services like water and sanitation for the effective functioning of the clinic.