The Dawn of A New Era for Local Government

18 NOVEMBER 2010

What is happening in local government ?

How Local Government sometimes feel.....

Complication

WHY does IGR not seem to work?

IGR ACT IGR toolkit IGR

handbook

Challenges

Structures

WHAT HOW

Easier guide

Challenges

From Compliance to Collaboration

Factors currently influencing Municipalities

Background

ExternalFactors

Demographic Patterns & Trends (in-migration;

household growth;rural – urban migration;

growth of informal settlements; farm evictions

Macro- / micro- economic(unemployment; revenue base

declining; tax evasion by businesses & foreigners)

IGR (weaknesses in policy & Regulatory frameworks,

voluntarism; fragmented support;Poor oversight;

unfunded mandates)

InternalFactors

Political Management & Stability(intra & inter political conflicts;

limited ability to develop & enforce by-laws)

Professional administration & Management (lack of

skilled staff; unqualified staff & appointments; conflict of Interest)

Financial Management(lack of systems & controls)

Accountability (poor mechanisms of community consultation

& feedback; ward committees poorly resourced)

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Service DELIVERY Protests

Background

Protests by Month: Jan ‘09 – Feb ‘10

Year 2004 2005 2006 2007 2008 2009 2010 Total

Protests 10 35 2 32 27 105105 23 234

128 (55%)128 (55%) of

the total of

234 service

DELIVERY

protests

recorded

since 2004,

took place

between Jan

‘09 and Feb

‘10

Source: Municipal IQ

Hotspots Monitor (March,

2010)

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Service DELIVERY Protests: By Province

Background

2009 2010

Source: Municipal IQ

Hotspots Monitor (March,

2010)

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Despite the Media prominence of Mpumalanga, Gauteng

remains the site of the highest recorded number of protests.

Service DELIVERY Protests: Causes

Background

• While SALGA acknowledges the right of communities to protest, violent protests place councillors in danger and tarnish the profile of local

government;

• The causes of the protests are complex and manifold and include:• Poor Service DELIVERY;• Poor communication between municipalities and communities;• Many areas of service DELIVERY that do not fall within the mandate of local government (eg. housing, education, health, employment);

• Media coverage suggests that there are political factors underpinning many of the protests (both inter- and intra- party competition and

conflict).

•• For SALGA, the imperative is to restore stability and credibilitFor SALGA, the imperative is to restore stability and credibility to y to

municipalitiesmunicipalities

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Represent

Support

Advise

Gov

erna

nce

& IG

R

ANALYSIS

Infr

astr

uctu

re a

nd

Mun

icip

al S

ervi

ces

Eco

nom

ic D

evel

opm

ent a

nd

Dev

elop

men

t Pla

nnin

g

Mun

icip

al In

stitu

tiona

l D

evel

opm

ent

SALGA’s three keymain roles cut-acrossto underpin its 5-Year Strategic Objectives &

Programmes

Str

ateg

y, P

olic

y an

d R

esea

rch

Fin

ance

and

Cor

pora

te

Ser

vice

s

VISION

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

for money

Pro

vinc

ial P

rogr

amm

es

SALGA’S ORGANISING FRAMEWORK REMAINS

UNCHANGEDUNCHANGED

Com

mun

ity

Dev

elop

men

t

OC

EO

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Employer Body

Legislative

Background

• SALGA as a schedule 3A public entity in terms of the PFMA is required to prepare its “Annual Budget” and “Corporate Plan”. The Annual Budget which is an annexure to the organizational Corporate Plan shall include a projection of revenue, expenditure and borrowings for that financial year in the prescribed format (section 52(a) of the PFMA).

• The PFMA Treasury Regulation no. 29 further provides that the financial plan must address the following:– projections of revenue, expenditure and borrowings;– asset and liability management;– cash flow projections;– capital expenditure programmes; and– dividend policies.

• The Annual Plan shall constitute a basis for the evaluation of the organizational financial performance as envisaged by the PFMA Treasury Regulation no. 29.3. The financial Key Performance Indicators (KPI’s) derived from the annual budget shall facilitate an effective performance monitoring, evaluation and corrective action.

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Revenue Distribution 2010/11

88

Revenue Distribution Revenue Distribution Revenue Distribution Revenue Distribution

over MTREF periodover MTREF periodover MTREF periodover MTREF period

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MTSF OUTCOMES

MTSF 2010/11 OUTCOMES

1 Quality basic education.

2 A long and healthy life for All 283 municipalities South Africans.

3 All 283 municipalities people in South Africa are and feel safe.

4 Decent employment through inclusive economic growth.

5 Skilled and capable workforce to support an inclusive growth path.

6 An efficient, competitive and responsive economic infrastructure network.

7Vibrant, equitable, sustainable rural communities contributing towards food

security for All 283 municipalities.

8 Sustainable human settlements and improved quality of household life.

9 Responsive, accountable, effective and efficient Local Government system.

10 Protect and enhance our environmental assets and natural resources.

11 Create a better South Africa, a better Africa and a better world.

12An efficient, effective and development orientated public service and an

empowered, fair and inclusive citizenship.

Supersede the 09/10 Apex priorities as the centrepiece of policy & DELIVERYInformed by the 2009 Election Manifesto

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MTSF OUTCOME 9:LGTAS 10 POINT PLAN

Provides concrete ‘outcomes’ for the LGTAS & replaces the 5YLGSA

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SALGA’s NEW Mandate and Strategic Priorities 2009-2 012:

SALGA 5 YEAR STRATEGIC PLAN

2007-2012

SALGA 5 YEAR STRATEGIC PLAN

2007-2012

SALGA CONSTITUTION1. Employer Role 2. Representative Role3. Advisory Role 4. Profiling Role

SALGA CONSTITUTION1. Employer Role 2. Representative Role3. Advisory Role 4. Profiling Role

SALGA’SMANDATESALGA’S

MANDATE

5YLGSA5YLGSA

MTSF 2009-2014MTSF 2009-2014

MDG’sMDG’s

COGTA 10-POINT PLANCOGTA 10-POINT PLAN

1Improve SALGA’s capacity to support and advise its members.2Improve SALGA’s capacity to engage with stakeholders, lobby and advocate them on issues in the interest of member municipalities.

1Improve SALGA’s capacity to support and advise its members.2Improve SALGA’s capacity to engage with stakeholders, lobby and advocate them on issues in the interest of member municipalities.

SALGA CHANGE AGENDASALGA CHANGE AGENDA

3Improve SALGA’s capacity to effective represent members as the employer.4Enhance and maintain a high profile position nationally, regionally and internationally.5SALGA’s corporate governance and internal functioning.

3Improve SALGA’s capacity to effective represent members as the employer.4Enhance and maintain a high profile position nationally, regionally and internationally.5SALGA’s corporate governance and internal functioning.

1. Councillor Support: High calibre, professional and effective Local Government political leadership.1. Councillor Support: High calibre, professional and effective Local Government political leadership.

SALGA 10 PRIORITY OUTCOMES2010-2012

SALGA 10 PRIORITY OUTCOMES2010-2012

2. Service DELIVERY: Improved access to municipal services and enhanced provision of FBS, through effective operations management and service maintenance.

2. Service DELIVERY: Improved access to municipal services and enhanced provision of FBS, through effective operations management and service maintenance.

3. Social Cohesion: Transversal (gender, youth, children, HIV/AIDS) socio-economic issues mainstreamed.3. Social Cohesion: Transversal (gender, youth, children, HIV/AIDS) socio-economic issues mainstreamed.

4. Economic Development: Municipalities drive growth and employment creation, both in urban and rural areas.4. Economic Development: Municipalities drive growth and employment creation, both in urban and rural areas.

5. Labour Relations: A productive, stable labour environment, supported by a mutual gains approach.5. Labour Relations: A productive, stable labour environment, supported by a mutual gains approach.

6. Sound financial management and governance system : Improved financial management and financial viability of municipalities.

6. Sound financial management and governance system : Improved financial management and financial viability of municipalities.

7. Stable Municipal Governance: Stable Municipal Governance.7. Stable Municipal Governance: Stable Municipal Governance.

8. Capacity Building and Institutional Development: Enhanced skills and organisational systems and structures of municipalities towards improved service DELIVERY.

8. Capacity Building and Institutional Development: Enhanced skills and organisational systems and structures of municipalities towards improved service DELIVERY.

9. Reform Organised Local Government: A more effective, responsive and financially viable SALGA.9. Reform Organised Local Government: A more effective, responsive and financially viable SALGA.

10. Climate Change response measures at municipal l evel: Integrated climate change responses in development planning and management.

10. Climate Change response measures at municipal l evel: Integrated climate change responses in development planning and management.32

PRIORITY 9: REFORMING ORGANISED LOCAL

GOVERNMENTPARTNERSHIPS

PARTNERSHIPS

PARTNERSHIPS

PARTNERSHIPS

PARTNERSHIPS

PARTNERSHIPS

PARTNERSHIPS

PARTNERSHIPS •Partner: Corporate Business

•Objectives of the programme: o To identify and share good practice in order to

strengthen LG.

•Benefits:o Peer review of SALGA to support reforming OLG.

o Technical support in priority areas (eg. Municipal

Response to the Economic Recession).

R 3 000 000

SALGASALGA’’s Strategic Prioritys Strategic Priority: To Reform Organised Local Government: To Reform Organised Local Government

Beneficiary Beneficiary

Municipalities:Municipalities:

All 283

municipalities

(283)

Just how useful is “collective wisdom”

THANK YOU

““ The Dawn of A New Era for Local GovernmentThe Dawn of A New Era for Local Government ””

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