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

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

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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 SALGAs
  mandate and an Action Plan developed
• New Business Plan was developed with
• New vision mission values and strategic
  objectives
• New organisational structure

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2. INTRODUCTION

• SALGAs Mandate
• SALGAs 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
  SALGAs 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

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2. INTRODUCTION

• SALGAs 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

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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

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2. INTRODUCTION

• Vision Mission Values Strategic Objectives
• Strategic Objectives
• - Increase SALGAs 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

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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

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2. INTRODUCTION
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2. INTRODUCTION

• Organisational Structure

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2. INTRODUCTION

• Organisational Structure

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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

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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

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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

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3. PROGRAMMES

• KEY ACHIEVEMENTS (2003/04)

• Successfully conducted in-depth
• financial management analysis to 123
• municipalities on the basis of the AGs
• 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

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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

PROGRESS 1 In a process of developing an
easy-to- read guide on LG legislation, in
partnership with Jutastat 2 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
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3. PROGRAMMES

• KEY PRIORITIES PROGRESS (2004/05)

• PRIORITIES
• Develop Speakers Handbook
• Strengthen local government
• participation in IGR forums

PROGRESS 1 The Speakers Handbook has
been written 2 Currently running a pilot
project with Gauteng speakers 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
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3. PROGRAMMES

• KEY PRIORITIES PROGRESS (2004/05)

• PRIORITIES
• Preparations for local government
• elections
• Ensuring the completion of the review of
• Councillor Remuneration

PROGRESS 1 LG Elections Strategy
developed 2 Facilitation of setting up election
offices in each municipality 1 A Political Task
Team was formed to consider draft Councillor
Remuneration Upper Limits 2 Provided a
technical support to Deloite, which is engaged
by the Office of the President to advise on
public office bearers remuneration

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3. PROGRAMMES

• KEY PRIORITIES PROGRESS (2004/05)

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

PROGRESS 1 Held a workshop in
partnership with GTZ to clarify the role of
SALGA to its stakeholders 2 Held various
meeting with DPLG to clarify roles between
SALGA DPLG 1 The database has been set up 2
Assisted DPLG to develop a legislation on
Municipal International Relations 1 Ongoing
continuous support and advice
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3. PROGRAMMES

• KEY PRIORITIES PROGRESS (2004/05)

• PRIORITIES
• Finalisation of Medical Aid Restructuring
• Finalisation of Pension Fund
• Restructuring

PROGRESS 1 Concluded phase 2 dealing with
accreditation of medical aid 2 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 funds 2 Published accreditation framework
and invited funds to comment 3 Requested the
funds to indicate how they are going to comply
with the accreditation
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3. PROGRAMMES

• KEY PRIORITIES PROGRESS (2004/05)

• PRIORITIES
• Finalisation of Pension Fund
• Restructuring
• Finalisation of Multi-Year salary
• agreement
• Integration of the Public Sector

PROGRESS 4 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 integration 2 The task
team developed implementation plan as per
instruction of the GA Cluster
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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

PROGRESS 1 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
developed 2 Identified pilot municipalities
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3. PROGRAMMES

• KEY PRIORITIES PROGRESS (2004/05)

• PRIORITIES
• Finalisation of Competency Framework
• Implement Impact Assessment of past
• and present training programmes
• Municipal Profiling and Benchmarks
• Implementation of Core Councillor Training

PROGRESS 1 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 47 2
Negotiations are under-way with donor funders
for the roll-out after LG Elections
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3. PROGRAMMES

• KEY PRIORITIES PROGRESS (2004/05)

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

PROGRESS 3 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 WSAs, targeting
portfolio councillors and officials 5 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 DPLG 2
Currently finalising the plan for the
implementation of the framework
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3. PROGRAMMES

• KEY PRIORITIES PROGRESS (2004/05)

• PRIORITIES
• Conference on Sustainable Development
• in September 2004

PROGRESS 1 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

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3. PROGRAMMES

• KEY PRIORITIES PROGRESS (2004/05)

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

PROGRESS 1 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
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3. PROGRAMMES

• KEY PRIORITIES PROGRESS (2004/05)

• PRIORITIES
• Formulate a Municipal Energy Planning
• Manual
• Energy planning support to some 39

PROGRESS 1 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
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3. PROGRAMMES

• KEY PRIORITIES PROGRESS (2004/05)

• PRIORITIES
• Ensure successful implementation of
• Masibambane 2 programme
• Assist munics in implementing Strategic
• Framework on Water Services to meet
• sector goals and targets, especially

PROGRESS 1 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 met 2
Isolated areas where there was a lack of
delivery which were found to in Free State and
Mpumalanga for continued support

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3. PROGRAMMES

• KEY PRIORITIES PROGRESS (2004/05)

• 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

PROGRESS 1 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.)

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3. PROGRAMMES

• KEY PRIORITIES PROGRESS (2004/05)

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

PROGRESS 1 Consulting
munics to roll-out FBE 2 Consulting ESKOM to
address concerns by munics 3 Monitor and
evaluate FBS roll-out 4 Input on indigent policy
development process 5 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
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3. PROGRAMMES

• KEY PRIORITIES PROGRESS (2004/05)

• 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

PROGRESS 1 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
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3. PROGRAMMES

• KEY PRIORITIES PROGRESS (2004/05)

• 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

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3. PROGRAMMES

• KEY PRIORITIES PROGRESS (2004/05)

• 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

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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

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3. PROGRAMMES

• KEY PRIORITIES PROGRESS (2004/05)

• PRIORITIES
• Establishment of SALGA Budget Office
• Design of Municipal Finance
• Management System

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3. PROGRAMMES

• KEY PRIORITIES PROGRESS (2004/05)

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

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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

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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

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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
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4. ORGANISATIONAL ISSUES

• EMPLOYMENT EQUITY STATUS

  Male Male Male Male Female Female Female 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
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4. ORGANISATIONAL ISSUES

• FINANCES - REVENUE

Source 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 64,746
Notes SALGAs 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.
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4. ORGANISATIONAL ISSUES

• FINANCES - REVENUE

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4. ORGANISATIONAL ISSUES

• 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
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4. ORGANISATIONAL ISSUES

• 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
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4. ORGANISATIONAL ISSUES

• FINANCES EXPENDITURE (CONT)