- SALGA REPORT - PORTFOLIO AND SELECT COMMITTEES ON PROVINCIAL AND LOCAL GOVERNMENT

- SALGA REPORT -

PORTFOLIO AND SELECT COMMITTEES ON

PROVINCIAL AND LOCAL GOVERNMENT

PRESENTATION MAP

3. Programmes• Achievements 2003/04• Challenges 2003/04• Priorities &Progress 2004/05• Key Events

4. Organisational Issues

• Staff issues• Finance

• Revenue• Expenditure vs. Budget (Audited)• Expenditure vs. Budget

(Unaudited)

1. Historical Context

• Historical organisational set-up• Recent changes at SALGA

2. Introduction

• SALGA’s Mandate• Vision, Mission, Values &

Strategic Objectives• Governance Structure• Organisational Structure

1. HISTORICAL CONTEXT

Historical Organisational Set-up

SALGA was until September 2004, under political leadership of Executive Mayor of Tshwane, Fr S. Mkhatshwa and administrative leadership of Mr. T. Mokwena

SALGA during that time operated with six directorates: Corporate Services Municipal Services Municipal Support and Interventions Strategy and Operations Labour Relations Governance and International Relations

1. HISTORICAL CONTEXT

Recent Changes At SALGA

Amendments to SALGA Constitution (Sept. 2004) Election of the new National Executive Committee under the

leadership of Executive Mayor of Johannesburg, Cllr. A. Masondo (Sept. 2004)

The appointment of the new Chief Executive Officer, Ms. Makhosi Khoza

National Executive Committee reviewed SALGA’s mandate and an Action Plan developed

New Business Plan was developed with: New vision; mission; values and strategic objectives New organisational structure

2. INTRODUCTION

SALGA’s Mandate

SALGA’s mandate derives from S169 of the Constitution of the Republic of South Africa, Act 108 0f 1996 as amended; S2(1) (A) of the Organised Local Government Act, Act 52 of 1997 as amended; the White Paper on Local Government of 1998; Municipal Systems Act, Act 32 of 2000; and SALGA’s Constitution of September 2004 as amended.

These mandates generally define SALGA as a representative of and resource of local government on national, regional and international level

The mandate of SALGA as defined in its principal sources, comprise the following: Representative role – an Inter-governmental Relations function Support & Advise role – define needs of members; lobby for/

leverage/ demand/ provide support & advise i.t.o needs

2. INTRODUCTION

SALGA’s Mandate (Cont…)

Act as an employer body Act as a resource (knowledge & info centre) to municipalities Help develop capacity in municipalities Ensuring, monitoring and evaluation Unite local government given that developmental obligations Custodian of sharing experiences within local government Partner government in driving transformation programme

2. INTRODUCTION

Vision; Mission; Values & Strategic Objectives Vision

An association of municipalities that is at the cutting edge of quality and sustainable services

Mission

To be consultative, informed, mandated, credible & accountable to our membership, and provide value for money

Values

Responsive

Innovative

Dynamic

Excellence

2. INTRODUCTION

Vision; Mission; Values & Strategic Objectives Strategic Objectives

- Increase SALGA’s effectiveness and efficiency to enhance sustainability of organised local government and quality of service to its members;

- To foster policy, strategy and operational integration of SALGA;- To foster planning, reporting and budgetary context for the organisation

as a whole; - To facilitate the strengthening of the system of communication in local

government;- To ensure that SALGA enhances and maintains a high profile position

locally, regionally and internationally;- To facilitate and support the capacity of member municipality locally and

through continental and international exchanges and peer learning in key areas;

- To mainstream issues of gender, youth, people with disabilities and HIV/Aids as central cross-cutting issues in the local government developmental agenda;

2. INTRODUCTION

Vision; Mission; Values & Strategic Objectives Strategic Objectives

- Promote a lawful governance system which will enable service delivery in a developmental state;

- Promote the credibility and relevance of the local government agenda in national policy and programmes;

- Promote the enhancement and mobilisation of existing capacity within the local government sphere to share responsibility for its own development;

- Monitor performance, evaluate service delivery and communication;

- To facilitate the implementation of a labour and human resources dispensation in municipalities that enhances service delivery;

- To advocate labour peace in the sector;

- To ensure municipal compliance to workplace legislation;

- To contribute to and support the government programme of integrating the public sector;

2. INTRODUCTION

GOVERNANCE STRUCTURE

NATIONAL CONFERENCE

NATIONAL EXECUTIVE COMMITTEE

NATIONAL MEMBERS ASSEMBLY

IMPLEMENTATION

CHIEF EXECUTIVE OFFICER

CLUSTERS

6 x WORKING GROUPS

2. INTRODUCTION

Organisational StructureGOVERNANCE STRUCTURE

CHAIRPERSON

EXECUTIVE MAYOR - AMOS MASONDO

DEPUTY CHAIRPERSON

EXECUTIVE MAYOR - HAZELJENKINS

DEPUTY CHAIRPERSON

EXECUTIVE MAYOR - OBEDMLABA

DEPUTY CHAIRPERSON

EXECUTIVE MAYOR - REGINAMHAULE

2. INTRODUCTION

Organisational Structure

CHIEF EXECUTIVEOFFICER

Ms. Makhosi Khoza

11 April 2005

ADMINISTRATIVE STRUCTURE

EXECUTIVE DIRECTOR:

MUNICIPAL SERVICES

Mr. Joseph Leshabane(Acting)

EXECUTIVE DIRECTOR:

FINANCE & CORPORATESERVICES

Mr. Sabelo Wasa

EXECUTIVE DIRECTOR:

GOVERNANCE & INTER-GOVERNMENTAL

RELATIONS

Mr. Graham Richards

EXECUTIVE DIRECTOR:

STRATEGIC AFFAIRS

Ms. Buhle Ally

EXECUTIVE DIRECTOR:

LABOUR & MUNICIPALHUMAN RESOURCES

Mr. Rio Nolutshungu

9 X DEPUTY CHIEFEXECUTIVE OFFICERS

(PROVINCES)

3. PROGRAMMES

KEY ACHIEVEMENTS (2003/04)• Completion of the Mayoral Handbook• Successfully advocated the interests of local government on:

• Property Rates Act;• Municipal Finance Management Act;• Communal Land Rights Bill and• Traditional Leadership and Governance,

during parliamentary debates.• Developed easy-to-read guide on Traditional Leadership and Governance Framework Act • Participated in the review of Councillor Remuneration • Assisted in the development of the Municipal Employee Bill

• Hosted the 8th AULA Regional Conference • Completed national audit on municipal international relations• Participated in preparations for 2004 Floor crossing • Continuous advice and support to municipalities on governance management and legal issues• Completion of Condition of service• Influenced Medical Aid restructuring successfully• Influenced Pension Fund restructuring successfully• Provided effective on-site support and advice

3. PROGRAMMES

KEY ACHIEVEMENTS (2003/04)• Influenced National Capacity Building Framework• Formation of National Capacity Building Steering Committee• LGWSETA Governance and Operational issues • Constitutional Amendments• Appointment of:

• LGWSETA CEO• Structures & Committees

• Workshops on Sustainable Development • Draft LED policy jointly released with DPLG• LED pilot initiated jointly with LGWSETA• Concluded municipal tourism analysis

• Implemented Community Based Planning approach in 8 pilot municipalities• Trained 30 Community Based Planning lead facilitators, and 80 facilitators in municipalities• Developed approximately 100 ward plans in the pilot sites • Good practices and lessons emerging from CBP have been recorded• Successful SALGA/ DWARF Water Summit was held in October 2003

3. PROGRAMMES

KEY ACHIEVEMENTS (2003/04)• Established National Join Response Team in Jan 2004, made up of SALGA; DWARF and DPLG, to provide support and s78 transfers in key municipalities with particular emphasis being placed on personnel transfers• Championing the roll-out of the SFWS throughout the country• Finalisation of the introductory roll-out on the SALGA/SAAWU bulk water contract for use by municipalities currently serviced by Water Boards• Introduced the SALGA Social Housing implementation Support Programme• Successful participation in EDI

• Jointly hosted workshops with municipalities per province to inform all municipalities of the Expanded Public Works Programme • Undertook an analysis of the EPWP to isolate municipal implications• Made submissions for renewal of Local Government Equitable Share• Made submissions for the budget forum • Provided on site support to municipalities• Successfully conducted governance assessment to 15 municipalities

3. PROGRAMMES

KEY ACHIEVEMENTS (2003/04)•Successfully conducted in-depth financial management analysis to 123 municipalities on the basis of the AG’s report • Municipal Support & Interventions Unit business plan developed• Support municipalities to deal with new policies and legislations• ICT Strategy for local government in partnership with CSIR• Successfully implemented ICT internship programme, 40 students were deployed across municipalities in ISRDP areas• Communications Working Committee established in partnership with GCIS• Local government Communicators handbook developed

•Monthly publications and issue of Voice Magazine • Corporate brochures developed and distributed• Timeously developed and distributed 2003/04 Annual Report• Established strong partnership with Department of Health regarding HIV/ AIDS• Conducted gender audit in munics• Developed and piloted gender policy framework• Commenced the 50/50 gender representation campaigns

3. PROGRAMMES

KEY PRIORITIES & PROGRESS (2004/05)

PRIORITIES• Facilitate the implementation and proper understanding of local government legislation

• Update the Mayoral Handbook having regard to latest local government legislation and latest Upper Limits of Salaries, Benefits and Allowances

PROGRESS1 In a process of developing an easy-to- read guide on LG legislation, in partnership with Jutastat2 Busy preparing a video with a detailed explanation of LG legislation

1 Currently engaging Auditor General to exempt municipalities from complying with some elements of Councillor Remuneration Upper Limits requirements before updating 2 Mayoral Handbook has been updated related MFMA requirements

3. PROGRAMMES


PRIORITIES• Develop Speaker’s Handbook

• Strengthen local government participation in IGR forums

PROGRESS1 The Speaker’s Handbook has been written2 Currently running a pilot project with Gauteng speaker’s forum

1 A list of Councillors has been adopted by SALGA NEC to represent SALGA on IGR Structures and the list of all the dates for IGR has been provided in time for meaningful representation

3. PROGRAMMES


PRIORITIES• Preparations for local government elections

• Ensuring the completion of the review of Councillor Remuneration

PROGRESS1 LG Elections Strategy developed2 Facilitation of setting up election offices in each municipality1 A Political Task Team was formed to consider draft Councillor Remuneration Upper Limits2 Provided a technical support to Deloite, which is engaged by the Office of the President to advise on public office bearer’s remuneration

3. PROGRAMMES


PRIORITIES• Strengthening of SALGA advocacy role in Parliament and other IGR forums

• Completing the database for Municipal International Relations and develop protocol on Municipal International Relations

• Promotion good governance through application of best practices and continuous advice and support

PROGRESS1 Held a workshop in partnership with GTZ to clarify the role of SALGA to its stakeholders2 Held various meeting with DPLG to clarify roles between SALGA & DPLG

1 The database has been set up2 Assisted DPLG to develop a legislation on Municipal International Relations

1 Ongoing – continuous support and advice

3. PROGRAMMES

KEY PRIORITIES & PROGRESS (2004/05)PRIORITIES• Finalisation of Medical Aid Restructuring

• Finalisation of Pension Fund Restructuring

PROGRESS1 Concluded phase 2 dealing with accreditation of medical aid2 Next phase is to set up a single medical aid, but government has instructed that the process be freezed until the finalisation of integration of public sector 1 Finalise the consultation with the funds2 Published accreditation framework and invited funds to comment3 Requested the funds to indicate how they are going to comply with the accreditation

3. PROGRAMMES

KEY PRIORITIES & PROGRESS (2004/05)PRIORITIES• Finalisation of Pension Fund Restructuring

• Finalisation of Multi-Year salary agreement

• Integration of the Public Sector

PROGRESS4 Parallel to the process a single fund is in a process of being established to accommodate employees that are not members of the fund as well as new employees

1 Currently busy with salary negotiations with 2 rounds already completed

1 SALGA is participating on the task team dealing with the integration2 The task team developed implementation plan as per instruction of the G&A Cluster

3. PROGRAMMES

KEY PRIORITIES & PROGRESS (2004/05)PRIORITIES• Finalisation of Job Evaluation

• Revised salary scales for Municipal Managers

• Finalise Amendments to the Organisational Rights Agreement

• Development of an Integrated Payroll System

PROGRESS1 Ongoing, bigger municipalities have completed the evaluation whilst the smaller municipalities are struggling

1 Continuously done at the beginning of each financial year (July)

1 The agreement is signed

1 Project halted, but the project was scoped and TOR developed2 Identified pilot municipalities

3. PROGRAMMES


PRIORITIES• Finalisation of Competency Framework

•Implement Impact Assessment of past and present training programmes

• Municipal Profiling and Benchmarks

•Implementation of Core Councillor Training Programme; Executive Leadership Programme and Water Services Development

PROGRESS1 Finalised through Sector Skills Plan by LGSETA

1 Has not been done yet due to shortage of funds but is currently part of LGSETA Business Plan

1 Ongoing matter at District & Local Learning Networks

1 CCTP was finalised Nov. 2004, where 38 Districts were trained on five modules out of 472 Negotiations are under-way with donor funders for the roll-out after LG Elections

3. PROGRAMMES

KEY PRIORITIES & PROGRESS (2004/05)PRIORITIES• Implementation of Core Councillor Training Programme; Executive Leadership Programme and Water Services Development

• Consolidating Institution Coordination

PROGRESS3 Executive Leadership Programme – an in-principle decision by DBSA to fund the programme has be taken, targeting Executive Mayor, Mayoral Committees and Municipal Managers 4 Water Services Authorities (Munics) were trained on their new responsibilities as WSA’s, targeting portfolio councillors and officials5 Councillor Development Programme – trained 504 councillors out of 630 target

1 National Capacity Building Framework for the sector was launched in Sep.04 in conjunction with DPLG2 Currently finalising the plan for the implementation of the framework

3. PROGRAMMES


PRIORITIES• Conference on Sustainable Development in September 2004

• Roll-out the pilot project on Waste Water to other municipalities

• Undertake assessment of sustainable development in other district municipalities, and provide support in line with the outcomes of the intended pilot

PROGRESS1 Conference was duly held in Sept. mainly to assess the progress made since WSSD

1 Not done due to lack of funding but also because the national framework was not finalised

1 Done in part, the assessment was done in Sikhukhune. Further funding is being sort from DBSA

3. PROGRAMMES


PRIORITIES• Disseminate the lessons and good practices from pilots to all munics

•Mobilise and facilitate the adoption of the Community Based Planning methodology in other munics

• Package and make available CBP guidelines to support implementation by more munics at minimal cost

PROGRESS1 Pilots are under-way to be concluded in May, and funding for the roll out is already secured (DBSA-R1.5m)2 Workshop was held in February and a conference in April to share pilot results for those completed pilots

1 Parallel to the piloting, WC & Amatole District Municipality are supporting the roll-out

1 Same as above processes, target for the guidelines being July 2005

3. PROGRAMMES


PRIORITIES• Formulate a Municipal Energy Planning Manual

• Energy planning support to some 39 munics with a view to implement Demand Side Management. This is a joint initiative with Eskom

• Delivery of Building Energy Audit Training through the Department of Minerals and Energy

• Providing on-site support to munics in implementing Energy Planning and Demand Side Management

PROGRESS1 The manual was developed and disseminated and workshoped

1 SALGA secured the cooperation of 39 municipalities in Demand Side Management

DME is currently running with the project

Ongoing support

3. PROGRAMMES


PRIORITIES• Ensure successful implementation of Masibambane 2 programme

• Assist munics in implementing Strategic Framework on Water Services to meet sector goals and targets, especially service delivery

• Prioritise addressing the backlog and bucket eradication and ensure the alignment necessary for improved sanitation delivery in line with Presidential targets

PROGRESS1 The Masibambane 2 programme was duly implemented

1 Ongoing programme through SALGA provincial coordinators and the Task Team

1 Undertook delivery audits which indicated that overall the Presidential targets will be met2 Isolated areas where there was a lack of delivery which were found to in Free State and Mpumalanga for continued support

3. PROGRAMMES


PRIORITIES• Continue to play a leading role in the institutional reform process and ensuring adequate support to frontrunner areas

• Development and articulation of a SALGA position regarding Water Services regulations

PROGRESS1 Ongoing, Transfer Task Team of which SALGA is part, is dealing with the transfer of water schemes

1 A position paper was developed and is currently considered by DWARF and regulation conference held in JHB in Feb. 2005 (Joint effort by City of JHB; SALGA; DWARF; etc.)

3. PROGRAMMES


PRIORITIES• Ensure that the municipal free basic services processes are concluded successfully

• Support progress towards the establishment of the REDS. The first RED is targeted for mid 2005

• Manage the multiplicity interests in the RED establishment

PROGRESS1 Consulting munics to roll-out FBE2 Consulting ESKOM to address concerns by munics3 Monitor and evaluate FBS roll-out4 Input on indigent policy development process5 Established free basic services communication task team

1 SALGA Northern Cape and Western Cape are involved in joint sessions in preparation of RED 1

1 Various workshops were held to disseminate information on the REDS

3. PROGRAMMES


PRIORITIES• Ensuring that MIG is structured to benefit munics by simplifying or rationalisation reporting and accountability as well as capacity enhancements

• Pursue the revision of the toll road strategy

• Assessment of municipal road infrastructure requirements and conditions

PROGRESS1 Ongoing, SALGA is participating on MIG Task Team

1 Undertook a research and prepared a position paper, primarily because the mandate rests with the Department of Transport

1 A survey was undertaken from June – August and was shared with the Department of Transport

3. PROGRAMMES


PRIORITIES• Support to the restructuring process and clarifying municipal implications of the transfer of functions between Local munics, District and Provinces

• The enhancement of municipal health in view of the restructuring

PROGRESS1 SALGA assisted the restructuring of health services i.t.o clarifying the new role of LG (environmental health), 2 workshops were held together with DOH and the following challenges were identified:• Funding• Movement of staff and assets• Current operational problems

3. PROGRAMMES


PRIORITIES• Intensify efforts to communicate EPWP implications for munics

• Embark on awareness campaign to support munics to internalise the EPWP process locally

• Establish a technical capacity to provide on site support to munics

PROGRESS1 SALGA started by defining its role on EPWP2 Together with Dept of Public Works, SALGA has put together an easy-to- read manual on EPWP3 Currently SALGA is working together with LGSETA in organising a training for munics’ officials and portfolio councillors

3. PROGRAMMES

KEY PRIORITIES & PROGRESS (2004/05)PRIORITIES• Rolling out LG Financial Best Practice Manual

• Support munics with the implementation of MFMA and Property rates Act

• Establishment of SALGA Budget Office

• Design of Municipal Finance Management System

PROGRESS1 Manual completed and distributed and workshopped all munics, and is currently being successfully used by munics

2 Working with NT a validation Board was set up to validate training material from different service providers 3 Working with DPLG on drafting regulations for Property Rates Act (various workshops held on this) 1 Due to lack of funds the Budget Office was not set up, instead District Finance forums were set up to deal with the issues of gathering information to assist with the budgeting process

3. PROGRAMMES


PRIORITIES• Establishment of SALGA Budget Office

• Design of Municipal Finance Management System

• Development of a basic and advanced financial management training for CFOs

• Review the implementation of Budget Reforms

PROGRESS1 Due to lack of funds the Budget Office was not set up, instead District Finance forums were set up to deal with the issues of gathering information to assist with the budgeting process

1 Worked with DPLG, DWARF; NT & Stats SA to collect data

1 Currently validating course material through Validation Board

1 Because budget reforms are as a result of MFMA, this issue will be dealt with on the training material being validated

3. PROGRAMMES


PRIORITIES• Report on the financial and fiscal status of munics to influence the Division of Revenue process

• Measure LG fiscal capacity

PROGRESS1 Compiled costing manual for munics to properly cost their services

2 Collected budgets from munics and analysis of those is underway with a purpose of measuring fiscal capacity

1 Undertook a survey in August 2004 to assess:• Housing delivery capacity• Accreditation difficulties in terms of the current legislation

3. PROGRAMMES

KEY CHALLENGES (2004/05)Governance & IGR• Meaningful LG representations on the split of powers and functions between district and local munics• Effective SALGA representation in IGR structures• Meaningful LG representations on the review of Councillor Remuneration• Developing partnership between LG and traditional councils as provide for in the Traditional Leadership and Governance Framework ActLabour Relations• Legal challenges from unorganised labour on medical aid restructuring• Extremely difficult negotiations on pension fund restructuring

•Legal technicalities with the establishment of a new Defined Contribution Fund for the sectorSkills Development• Constituting the National Capacity Building Committee and finalising its TOR• Audit the skills needs of the LG sector• Improve capacity to access Conditional GrantsWater Services• Continued support to munics regarding the implementation of DWARF Transfers• Finalisation of National Sanitation Policy amendments to better reflect munics positions

3. PROGRAMMES

KEY COMING EVENTS (2004/05)

• SALGA will be hosting UCLGA Founding Congress in May 2005• Local Government Elections later this year• National S78 Learning Conference in May 2005

4. ORGANISATIONAL ISSUES

STAFF PROFILE

Office Number

National 100

Eastern Cape 6

Northern Cape 4

North West 5

Mpumalanga 5

Free State 8

Limpopo 6

Total 134


EMPLOYMENT EQUITY STATUS Male Female

African Coloured Indian White African Coloured Indian White Total

Top Management

3 1 2 6

Senior Management

9 3 1 1 3 1 18

Professionally qualified

29 2 1 23 4 1 60

Semi-skilled & discretionary

Decision Making

11 25 3 2 41

Total Permanent

52 3 3 3 53 3 4 4 125

Non-permanent 4 2 2 8

Total 56 3 3 3 55 3 4 6 133

Person with Disabilities

1 1

Total 57 3 3 3 55 3 4 6 134


FINANCES - REVENUESource: 2001-2:

(R,000)% of total income:

2002-3:(R,000)

% of total income:

2003-4:(R,000)

% of total income:

Membership fees - - 17,704 37.1% 38,459 59.39%

Grants (DPLG) 21,500 68.3% 22,000 46.2% 20,250 31.29%

Donors 8,022 25.4% 4,119 8.6% 2,766 4.27%

Conferences 86

0.3% 778 1.6% - -

Sponsorships - - 1,561 3.3% 20 0.03%

LGWESETA - - - - 3,000 4.63%

Other income 1,869 6% 1,550 3.2% 251 0.39%

TOTAL: 31,477 47,714 64,746Notes:

SALGA’s main source of income is its membership fees, which amounts to 59% of its total revenue for 2003/04 financial year. R20.3m of the total revenue by the end of 2003/04 came from DPLG, whilst only R17.5m is expected by the end of this fiscal year.


FINANCES - REVENUE


FINANCES - EXPENDITURE

30/06/2002 30/06/2003 30/06/2004

Salaries and Allowances 6,256,015 16,907,915 18,119,226

General Activities 9,830,534 17,242,239 5,901,742

Repairs and Maintenance 125,837 198,177 214,571

Capital Activities 59,787 751,143 800,717

Key Priorities 17,038,228

NORAD Activities 2,736,577 4,403,594

Masibambane Activities 2,240,459 4,481,882

Councillor Development Programs 3,304,690

Provincial Office Costs 406,424 3,252,988 16,646,372

16,678,597 43,329,498 70,911,022


FINANCES – EXPENDITURE (CONT…)

30/06/2002 30/06/2003 30/06/2004

Total Expenditure reported

Add: Depreciation 16,678,597 43,329,498 70,911,022

Add: Provision for Bad Debts 1,325,596 257,170 266,047

1,297,998 616,400

Less: Capital expenditure 19,302,191 43,586,668 71,793,469

59,787 751,143 800,717

19,242,404 42,835,525 70,992,752


FINANCES – EXPENDITURE (CONT…)

Documents

- SALGA REPORT - PORTFOLIO AND SELECT COMMITTEES ON PROVINCIAL AND LOCAL GOVERNMENT