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FINANCIAL BEST PRACTICE MANUAL INTEGRATED DEVELOPMENT PLAN

1. Introduction This section is not intended to be a detailed Manual of the Integrated Development Planning (IDP). The Municipalities should refer to the various guides publications issued b! the Department for a detailed e"position. #"tracts from these guides are presented belo$. %.% #ach municipal &ouncil must' $ithin a prescribed period after the start of its elected term' adopt a single' inclusive and strategic plan for the development of the municipalit! ((ocal )overnment Municipal *!stems Act' +,,,' Paragraph +-). An! Integrated Development Plan must be underta.en $ithin the provisions of &hapter - of the Municipal *!stems Act' +,,,. The purpose of this Manual is to elaborate on' if not highlight' certain aspects. Integrated Development Planning is a process through $hich Municipalities prepare a strategic development plan' for a five0!ear period. The Integrated Development Plan (IDP) is a product of the integrated development planning process. The Integrated Development Plan is a principal strategic planning instrument' $hich guides and informs all planning' budgeting' management and decision0ma.ing in a municipalit! (Integrated Development Plan )uide Pac. )uide , 1vervie$' &hapter +' paragraph +.%(i)). An Integrated Development Plan adopted b! Municipal &ouncil ma! be amended' and remains in force until an Integrated Development Plan is adopted b! the ne"t elected &ouncil ((ocal )overnment Municipal *!stems Act' +,,,' Paragraph +-(+)). Therefore' the Integrated Development Plan is lin.ed to the term of office of &ouncillors. The ne$ &ouncil has the option of adopting the Integrated Development Plan of its predecessor' or to develop a ne$ Integrated Development Plan ta.ing into consideration alread! e"isting planning documents. Core Co !onent" o# Inte$r%ted De&e'o! ent P'%n" An Integrated Development Plan must reflect3 The Municipal &ouncil4s vision for the long term development of the municipalit!' $ith special emphasis on the municipalit!4s most critical development and internal transformation needs5 An assessment of the e"isting level of development in the municipalit!' $hich must include an identification of communities $hich do not have access to basic municipal services5 The &ouncil4s development priorities and ob6ectives for its elected term' including its local economic development aims and its internal transformation needs5

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(. /.% The &ouncil4s development strategies $hich must be aligned $ith an! 7ational or Provincial sectoral plans and planning re8uirements binding on the municipalit! in terms of legislation5 A spatial development frame$or. $hich must include the provision of basic guidelines for a land use management s!stem for the municipalit!5 The &ouncil4s operational strategies5 Applicable disaster management plans5 A financial plan' $hich must include a budget pro6ection for at least the ne"t three !ears5 and The .e! performance indicators and performance targets $ith regard to the municipalit!4s development priorities and ob6ectives. Bene#it" o# Inte$r%ted De&e'o! ent P'%nnin$

The Integrated Development Plan provides specific benefits for different target groups3 Municipal &ouncil3

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o #nables the municipalit! to obtain access to development resources and outside investment5 o #nables the municipalit! to provide clear and accountable leadership and development direction5 o #nables the municipalit! to develop a cooperative relationship $ith its sta.eholders and communities5 and o #nables the municipalit! to monitor the performance of officials5 &ouncillors3 o Provides &ouncillors $ith a mechanism of communicating $ith their constituencies5 o #nables &ouncillors to represent their constituencies effectivel! b! ma.ing informed decisions5 and o #nables &ouncillors to measure their o$n performance5 Municipal 1fficials3 o Provides officials $ith a mechanism to communicate $ith the &ouncillors5 o #nables the officials to contribute to the municipalit!4s vision5 and o #nables the officials to be part of the decision0ma.ing process5 &ommunities and 1ther *ta.eholders3 o )ives communities and sta.eholders an opportunit! to inform the &ouncil $hat their development needs are' and to determine the municipalit!4s development direction5 +

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FINANCIAL BEST PRACTICE MANUAL INTEGRATED DEVELOPMENT PLAN


o Provides a mechanism through $hich to communicate $ith their &ouncillors and the governing bod!5 and o Provides a mechanism through $hich the! can measure the performance of the &ouncillors and the municipalit! as a $hole5 7ational and Provincial *ector Departments3 o A significant amount of financial resources for the implementation of pro6ects lie $ith sector departments. The availabilit! of the Integrated Development Plan provides guidance to the departments as to $here their services are re8uired and hence $here to allocate their resources5 Private *ector3

o The Integrated Development Plan serves as a guide to the private sector in ma.ing decisions $ith regard to areas and sectors to invest in5 )eneral3

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o In the absence of an Integrated Development Plan' a municipalit! $ould act in an ad hoc' uninformed and uncoordinated manner' $hich $ould lead to the duplication and $astage of limited resources. Furthermore' the lac. of a Municipal tool to guide development $ould result in other spheres of government imposing their development programmes' $hich ma! not be priorit! for a Municipal area (Integrated Development Plan )uide Pac. )uide , 1vervie$' &hapter +' paragraph +.+). 2. 2.% 2.+ Process for Planning' Drafting' Adopting and Revie$ of Integrated Development Plans #ach municipalit! must $ithin a prescribed period after the start of its elected term adopt a frame$or. for integrated development planning in the area as a $hole. The frame$or. referred to in 2.% must at least3 Identif! the plans and planning re8uirements binding in terms of 7ational and Provincial legislation on an! specific municipalit!5 Identif! an! matters to be included in the Integrated Development Plans of the (ocal Municipalities that re8uire alignment5 *pecif! the principles to be applied and coordinate the approach to be adopted in respect of those matters5 and Determine procedures3 o To effect essential amendments to the frame$or. ((ocal )overnment Municipal *!stems Act' +,,,' Paragraph +9). /

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FINANCIAL BEST PRACTICE MANUAL INTEGRATED DEVELOPMENT PLAN


). -.% Ado!tion o# Proce"" #ch Municipal &ouncil' $ithin a prescribed period after the start of its elected term' must adopt a process set out in $riting to guide the planning' drafting' adoption and revie$ of its Integrated Development Plan ((ocal )overnment Municipal *!stems Act' +,,,' Paragraph +:). The Process Plan must include3 -./ A programme specif!ing the time frames for the different planning steps5 Appropriate mechanisms' processes and procedures for consultation and participation of local communities' organs of state' traditional authorities' and other role0pla!ers in the Integrated Development Plan drafting process5 and The identification of all plans and planning re8uirements binding on the municipalit! in terms of 7ational and Provincial legislation.

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The Process Plan is a separate document from the frame$or.' and it should fulfil the function of a business plan or an operational plan for the Integrated Development Plan process. Reco ended Structure"+Per"on" to ,e In&o'&ed in t-e Inte$r%ted De&e'o! ent P'%n Proce"" The follo$ing structures persons are recommended3 Municipal Manager or Integrated Development Plan Manager5 Integrated Development Plan *teering &ommittee5 Integrated Development Plan Representative Forum5 and Pro6ect Tas. Teams.

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Ro'e" %nd Re"!on"i,i'itie" Municipal &ouncil3 &onsideration and adoption of a Process plan5 and &onsideration' adoption and approval of the Integrated Development Plan.

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#"ecutive &ommittee3 Must decide on the Process plan5 Must be responsible for the overall management' coordination and monitoring of the process and drafting of the Integrated Development Plan' or delegate this function to the Municipal Manager5 and 2

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FINANCIAL BEST PRACTICE MANUAL INTEGRATED DEVELOPMENT PLAN


Must approve nominated persons to be in charge of the different roles' activities and responsibilities of the process and drafting. 9./ <ard &ouncillors3 Must lin. the planning process to their constituencies and or $ards5 =e responsible for organising public consultation and participation5 and Must ensure the annual business plans' and Municipal budget are lin.ed to and based on the Integrated Development Plan. 9.2 Municipal Manager and or Integrated Development Plan Manager Must manage and coordinate the Integrated Development Planning process5 Must prepare the Process plan5 Must underta.e the overall management and coordination of the planning process5 Must ensure that all the relevant actors are appropriatel! involved5 Must nominate persons in charge of different roles5 Must be responsible for the da!0to0da! management of the drafting process5 Must ensure that the planning is participator!' strategic and implementation orientated' and is aligned $ith and satisfies sector planning re8uirements5 Must respond to comments on the draft Integrated Development Plan from the public' hori>ontal alignment and other spheres of government to the satisfaction of the Municipal &ouncil5 and Must ensure proper documentation of the results of the planning of the Integrated Development Plan document. 9.?eads of Departments and 1fficials3 Must provide relevant technical' sector and financial information for anal!sis for determining priorit! issues5 &ontribute technical e"pertise in the consideration and finalisation of strategies and identification of pro6ects5 Provide departmental operational and capital budgetar! information5 Must be responsible for the preparation of pro6ect proposals' the integration of pro6ects and sector programmes5 and Must be responsible for preparing amendments to the draft Integrated Development Plan for submission to Municipal &ouncil for approval. /. :.% Pro!o"ed Proce"" The #"ecutive &ommittee and the Municipal Manager should3 Define the terms of reference for the Integrated Development Plan Manager and *teering &ommittee5 -

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FINANCIAL BEST PRACTICE MANUAL INTEGRATED DEVELOPMENT PLAN


:.+ Identif! an appropriate Integrated Development Plan Manager' ta.ing into consideration the importance of the Integrated Development Plan' time constraints of the Municipal Manager and alternative persons5 Assign responsibilities $ith regard to drafting of the Integrated Development Plan to the Municipal Manager and alternative persons5 and Identif! and nominate suitable candidates for the *teering &ommittee' ensuring that all relevant issues have at least one responsible person.

The ne$l! established Integrated Development Plan *teering &ommittee should be responsible for the establishment of the Integrated Development Plan Representative Forum b!3 Defining terms of reference and criteria for members of the Integrated Development Plan Representative Forum5 Informing the public about the establishment of the Integrated Development Plan Representative Forum and re8uest submission of applications from sta.eholders communit! groups indicating goals' ob6ectives' activities' number of members' and constitution5 Identif!ing3 o Additional sta.eholders and unorganised marginali>ed underrepresented groups that ma! need an @advocateA to represent their interests5 o Potential advocates5 o Resource persons5 and o *enior officials5 *electing potential groups members based on criteria5 *ubmitting proposed groups members to &ouncil for consideration5 and 7ominating members and informing the local communit!.

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If the Municipal Manager is not the Integrated Development Plan Manager' the Municipal Manager must decide on3 Po$ers and functions to be delegated5 Responsibilit! remaining $ith the Municipal Manager accountabilit!5 and Reporting mechanisms.

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The Integrated Development Plan *teering &ommittee must3 #stablish sub committees (if necessar!) and decide on relationship reporting mechanisms5 and Appoint the secretariat.

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The Integrated Development Plan Representative Forum3

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FINANCIAL BEST PRACTICE MANUAL INTEGRATED DEVELOPMENT PLAN


&omprises of3 o o o o o o o o o :.; :.9 Members of the #"ecutive &ommittee5 &ouncillors5 Traditional (eaders5 <ard &ommittee Person5 ?eads of Departments *enior officials5 *ta.eholder representatives of organised groups5 Advocates for unorganised groups5 Resource persons5 &ommunit! Representatives5

Represent the interests of their constituents in the Integrated Development Plan process5 Provide an organisational mechanism for discussion' negotiation and decision ma.ing bet$een the sta.eholders including Municipal )overnment5 #nsure communication bet$een all the sta.eholder representatives including the Municipal )overnment5 and Monitor the performance of the planning and implementation process.

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1nce the Process Plan and the Frame$or. referred to above have been finalised' the municipalit! can then prepare its Integrated Development Plan. The Integrated Development Planning consists of the follo$ing phases3

:.9.% The Anal!sis Phase3 This phase focuses on the t!pe of problems faced b! the people in the Municipal area. Problems are identified and prioritised according to their urgenc! and or importance5 *ta.eholder and communit! participation in this phase is critical. The people affected should be involved in determining the problems and the e"tent of the problems5 It is important to identif! priorit! issues because the municipalit! $ill not have sufficient resources to address all the issues identified b! different segments in the communit!5 The outputs of this phase include3 o o o o Assessments of e"isting levels of development5 Prioritisation of issues or problems5 Information on causes of priorit! issues problems5 and Information on available resources .

:.9.+ *trateg! Phase3 9

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FINANCIAL BEST PRACTICE MANUAL INTEGRATED DEVELOPMENT PLAN


This phase includes the formulation of3 o A vision statement $hich indicates the ideal situation the municipalit! $ould li.e to achieve in the long term5 o Development ob6ectives $hich are statements of $hat the municipalit! $ould li.e to achieve in the medium term in order to address the issues or problems identified in the anal!sis phase5 o Development strategies $hich ans$ers the 8uestion of ho$ the municipalit! $ill achieve its ob6ectives5 and o Pro6ect identification resources. o o o o The outputs of this phase include3 The vision statement5 1b6ectives5 *trategies5 and Identified pro6ects.

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:.9./ Pro6ects Phase3 This phase involves the design and specification of pro6ects for implementation. The municipalit! must ensure that the pro6ects identified have a direct lin.age to the priorit! issues and the ob6ectives that $ere identified in the previous phases. It must also be clear on the target group' the location of the pro6ect' commencement dates and envisaged end dates' $ho $ill be responsible for managing the pro6ect' the costs of the pro6ect' and the source of funding for the pro6ect. Furthermore' targets and indicators are formulated to measure performance and the impact of the pro6ect resources. The outputs for this phase are3 o o o o Performance indicators5 Pro6ect outputs' targets and location5 Pro6ected related activities and time schedules5 and &ost and budget estimates.

Designing pro6ects $ill re8uire inputs from specialists $ho $ill $or. $ith the pro6ect formulation teams. :.9.2 Integration Phase3 1nce the pro6ects are identified' the municipalit! must ensure the! are in line $ith the municipalit!4s ob6ectives and strategies' and also $ith the resource frame$or.' and compl! $ith the legal re8uirements resources. :

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FINANCIAL BEST PRACTICE MANUAL INTEGRATED DEVELOPMENT PLAN


This phase provides the municipalit! $ith the opportunit! to harmonise the pro6ects in terms of contents' location and timing to arrive at a consolidated and integrated programme. The outputs for this phase include3 o o o o o o o :.9.A five !ear financial plan5 A five !ear capital investment programme5 Integrated spatial development frame$or.5 Integrated sectoral programmes5 &onsolidated monitoring performance management s!stem5 A disaster management plan5 An institutional plan.

Approval Phase3

1nce it has been completed' the Integrated Development Plan must be made available to the public for their comments. Thereafter' the Integrated Development Plan must be submitted to the Municipal &ouncil for consideration and approval (Municipal *!stems Act' +,,,' Paragraph /,). &ouncil must consider $hether the Integrated Development Plan identifies the .e! issues concerning the municipalit! and the e"tent to $hich the strategies and pro6ects $ill contribute to addressing the problems. &ouncil must also ensure that the Integrated Development Plan complies $ith all legal re8uirements. The output for this phase is an approved Integrated Development Plan for the municipalit!. :.: :.:.% Provincial monitoring and support3 The Member of #"ecutive &ommittee for (ocal )overnment in the Province ma!' sub6ect to an! other la$ regulating Provincial supervision of (ocal )overnment3 Monitor the processes follo$ed b! the municipalit! in the formulation of its integrated development plan5 Assist the municipalit! $ith the planning' drafting' adoption and revie$ of its Integrated Development Plan5 Facilitate the coordination and alignment of3 o Integrated Development Plans of different Municipalities' including those of a District municipalit! $ith the (ocal Municipalities $ithin its area5 and o The Integrated Development Plan of a municipalit! $ith plans' strategies and programmes of 7ational and Provincial 1rgans of *tate5

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FINANCIAL BEST PRACTICE MANUAL INTEGRATED DEVELOPMENT PLAN


Ta.e an! appropriate steps to resolve disputes or differences in connection $ith the planning' drafting' adoption or revie$ of an Integrated Development Plan bet$een3 o A municipalit! and the local communit!5 and o Different Municipalities ((ocal )overnment Municipal *!stems Act' +,,,' paragraph /%). 0. B.% Co!1 o# Inte$r%ted De&e'o! ent P'%n to ,e "u, itted to MEC #or Loc%' Go&ern ent The Municipal Manager must submit a cop! of the Integrated Development Plan as adopted b! the &ouncil of the municipalit! and an! subse8uent amendment to the plan' to the M#& for (ocal )overnment in the Province $ithin %, da!s of the adoption or amendment of the plan ((ocal )overnment Municipal *!stems Act' +,,,' paragraph /+). The cop! of the Integrated Development Plan to be submitted in terms of B.% must be accompanied b!3 The summar! of the process that is follo$ed b! a municipalit! to draft its Integrated Development Plan' including its consideration and adoption of the draft plan5 A statement that the process has been complied $ith' together $ith an! e"planations that ma! be necessar! to amplif! the statement5 and In the case of a (ocal municipalit!' a cop! of the frame$or. referred to in terms of 2.% above ((ocal )overnment Municipal *!stems Act' +,,,' paragraph /+). B./ The Member of #"ecutive &ommittee for (ocal )overnment in Province ma!' $ithin /, da!s of receiving a cop! of the Integrated Development Plan or an amendment to the plan' or $ithin such reasonable longer period as ma! be approved b! the Minister' re8uest the relevant Municipal &ouncil3 To ad6ust the plan in accordance $ith the his her proposals if the plan or Amendment3 o Does not compl! $ith a re8uirement of this act5 o Is in conflict $ith' or is not aligned $ith' or negates an! of the development plans and strategies of the other affected municipalities or organs of state5 or To compl! $ith the process follo$ed b! a municipalit! to draft its integrated development plan or $ith a specific provision of this act relating to the drafting or amending integrated development plans if the municipalit! has failed to compl! $ith that process or provision' and to ad6ust the plan or the amendment if that becomes necessar! after such compliance ((ocal )overnment Municipal *!stems Act' +,,,' paragraph /+). %,

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FINANCIAL BEST PRACTICE MANUAL INTEGRATED DEVELOPMENT PLAN


B.2 The Municipal &ouncil must consider the proposal of an! Member of #"ecutive &ommittee' and $ithin /, da!s of receiving the his her re8uest' must3 If it agrees $ith those proposals' ad6ust its Integrated Development Plan or amendment in accordance $ith the re8uest5 or If it disagrees $ith proposals' ob6ect to the re8uest and furnish the Member of #"ecutive &ommittee $ith reasons in $riting of $h! it disagrees ((ocal )overnment Municipal *!stems Act' +,,,' paragraph /+). B.- 1n receipt of an ob6ection to enhance cooperation' mutual assistance and sharing of resources among Municipalities' the Member of #"ecutive &ommittee ma! refer the municipalit!4s ob6ection to the an ad hoc committee for a decision. If the M#& decides to refer an ob6ection to an ad hoc committee' the ob6ection must be referred $ithin +% da!s of receipt of the ob6ection. B.; <henever necessar!' the Member of the #"ecutive &ommittee for (ocal )overnment must appoint an ad hoc committee comprising members representing local government' the Provincial government and the 7ational government' to decide on an ob6ection b! a municipalit! in terms of B.- above ((ocal )overnment Municipal *!stems Act' +,,,' paragraph //). B.9 An ob6ection lodged in terms of B.- above is decided if at least t$o spheres of government agree on the matter. B.: If the ad hoc committee re6ects the municipalit!4s ob6ection' the municipalit! must $ithin /, da!s of the date on $hich the committee has ta.en a decision and informed the municipalit!' compl! $ith the Member of the #"ecutive &ommittee4s re8uest ((ocal )overnment Municipal *!stems Act' +,,,' paragraph //).

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Annu%' Re&ie3 %nd A end ent o# Inte$r%ted De&e'o! ent P'%n A Municipal &ouncil3 Must revie$ its Integrated Development Plan annuall! in accordance $ith an assessment of its performance measurements' and to the e"tent that changing circumstances so demand a revie$5 Ma! amend its Integrated Development Plan in accordance $ith a prescribed process ((ocal )overnment Municipal *!stems Act' +,,,' paragraph /2). The ma!or of a municipalit! must co0ordinate the annual revision of the Integrated Development Plan in terms of section /2 of the Municipal *!stems Act and the preparation of the annual budget' and determines ho$ the integrated development %%

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FINANCIAL BEST PRACTICE MANUAL INTEGRATED DEVELOPMENT PLAN


plan is to be ta.en into account or revised for the purposes of the budget. (MFMA -/ (%)(b))

INTEGRATED DEVELOPMENT PLANNING E4AMPLE


The budgeting process should be lin.ed to the Integrated Development Plan to achieve the vision identified. The follo$ing flo$ chart assists in lin.ing the budget $ith the vision' ob6ectives' strateg!' program and pro6ects.

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Vision Mission/Objectives Strategy Strategy Strategy Program Program Program Program Program Action Plan/ Projects Action Plan/ Projects Action Plan/ Projects Action Plan/ Projects Action Plan/ Projects Action Plan/ Projects Action Plan/ Projects

Vi"ion

A t!pical vision for CDE municipalit! developed b! its sta.eholders ma! be3 =! +,+, CDE Fnicit! $ill en6o! the reputation of being Africa4s most caring and liveable cit!' $here all citi>ens live in harmon!. This Gision $ill be achieved b! gro$ing its econom! and meeting peoples needs so that all citi>ens en6o! a high 8ualit! of life $ith e8ual opportunities' in a cit! that the! are trul! proud of.

Mi""ion+O,5ecti&e" 3 Meeting basic needs5 *trengthening the econom!' etc. Str%te$ie" It must be outcomes led' i.e. driven b! the overall strateg! developed b! the #"ecutive &ommittee and committed to the - !ear Integrated Development Plan. Pro$r% "6 To cater for housing5 To cater for health care' etc. Action P'%n+Pro5ect" 3 ?ousing pro6ects5 Hob creation pro6ect' etc. The pro6ects' programs' strategies and mission flo$ from the vision. =! allocating a budget provision to each of the %+ action plans pro6ects' a lin. bet$een the Integrated Development Plan and the =udget is achieved. *ome form of IMFO $eighting SALGA should be used to enable the prioritisation of pro6ects eg. *ta.eholders ma! be given an opportunit! to attach a numerical $eighting value to each pro6ect. This $eighting must then be used to determine the allocation of the available financial resources to the various pro6ects.

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