SALGA BUDGET REVIEW REPORT
TO THE PORTFOLIO COMMITTEE ON PROVINCIAL AND LOCAL GOVERNMENT
12 March 2003
CONTENTS
1. SALGA NATIONAL 2002/3 BUSINESS PLAN & BUDGET 3
1.1 Key Achievements to Date (July 2002 – March 2003)
1.2 Key Priorities till June 2003
2. TOWARDS A 2003/5 SALGA INTEGRATED BUSINESS PLAN AND BUDGET 4
2.1 The Budget Process
2.2 Key Priorities for 2003/6
3. INTERFACE WITH Municipalities 6
4. From Planning to Implementation: Working Other Stakeholders 7
3.1 Relationship with DPLG
3.2 Relationship with Donor Agencies
3.3 Relationship with Research Agencies and Specialist Institutions
5. Key Challenges 8
ANNEXURES
Annexure 1: National Directorate Reports 9
Annexure 2: Provincial Reports 31
Annexure 3: Draft Financial Statements for 2001/2 35 Annexure 4: Treasurer’s Report to the National General Council Annexure 5: NGC Resolutions
1. SALGA NATIONAL 2002/3 BUSINESS PLAN & BUDGET
1.1 Key Achievements: July 2002 to Date
Some of SALGA’s key achievements from July 2002 to date have been as follows:
IGR & Policy Formulation
Formal representation on the Presidential Co-ordinating Council.
Participated in the formulation of a new IGR Framework.
MFMB - won significant gains for OLG and the continuing independence of the local government sphere.
Signed Electricity Distribution Industry Co-operation Agreement.
Governance Drafted Mayoral Handbook.
Undertook a number of municipal interventions regarding governance issues.
Labour Relations
Agreement on shift to multi-year bargaining and multi-year salary and wage agreement.
Agreement on grievance and disciplinary procedures.
Capping of medical aid contributions
Establishment of labour relations database. Capacity Building
Development of a Skills Development Strategy.
Initiation of a Sector Skills Strategy.
SALGA/DPLG agreement on a joint approach to developing an Integrated Capacity Building Strategy for the Sector.
Training
Core Councillor Training Programme
Financial Management
TASK job evaluation system
HIV/AIDS
International Relations
Hosted AULA Executive Committee.
Hosted CLGF Conference.
Finalised LGIB Co-operation Agreement.
Sponsored municipal partnership agreements under the auspices of the Commonwealth Good Practice Scheme.
Councillor Support Development of a tax support service.
Conferences and Events
Co-hosted Local Government Session of WSSD.
Communications Conference - brought local government communicators together for the first time and launched the National Communications Steering Committee.
Formed Local Government Consultative Assembly.
Delivered Successful NGC.
Internal Restructuring
Adopted & Finalised New Administrative Structure
Developed new Internal Systems and Policies
1.3 Key Priorities till June 2003
Increasing the quantity and quality of engagement with and service to municipalities
Developing a clear understanding of municipal needs.
Developing guidelines for the Remuneration of Municipal Managers Ensure Employee Performance Management Agreements in place for Section 57 Employees. Implementation of the Councillor Support Programme.
Implementing the NGC Resolutions
National Conference Preps
Rolling-out an ongoing programme of visits to municipalities
Launching the LG Portal
Launching the District and Local Municipality Networks
Develop best practice benchmarks in priority areas of service delivery.
Launch of the SALGA Development Train.
Improving organizational efficiency and effectiveness and instilling a new organizational culture.
Finalisation of the restructuring process.
Building the public profile of SALGA.
More detailed reports on the achievements and remaining 2002/3 priorities per national directorate as well as reports on provincial priorities for the remainder of the financial year are attached as Annexures 1 and 2 respectively.
2. TOWARDS A 2003/4 SALGA INTEGRATED BUSINESS PLAN AND BUDGET
2.1 The Budget Process
Whilst the SALGA budget for 2002/3 was essentially just an amalgam of different business plans and budgets that had been produced separately by national and provincial bodies, the budget process for 2003/4 will be the first holistic budget process aimed at producing a truly integrated business plan and budget reflective of national and provincial priorities. This process will be finalised by June 2003.
The national budget estimate for 2003/4 remains pegged at R120 million based on SALGA’s new programme, the new membership levy and the implementation of a central collection mechanism. Municipalities are currently being invoiced and an assessment of likely income will be finalised in April 2003, which will then be compared with the expenditure requirements of national and provincial programmes to arrive at a final business plan and budget.
With regard to SALGA’s income and expenditure patterns for the last 3 financial years, the National Treasurer’s Report to the National General Council on the audited financial statements for 1999/2000 and 2000/1 as well as the draft financial statements for 2001/2 are attached as Annexures 3 and 4 respectively. These statements show a steady and growing improvement in SALGA’s financial management over the last 3 years.
2.2 Key Medium-Term Priorities for 2003/6
The following priorities have been identified for 2003/6 Medium-Term Business Plan and Budget based on previous priorities - which are considered still to be relevant - and the outcomes of the National General Council:
Councillor support programme
Remuneration, tax advice, benefits.
Optimal Governance Systems for Local Government
Optimising institutional arrangements
Powers & Functions
Improving intergovernmental relations
Optimising governance relationships
Improving the operations of ward committees
Review of enabling legislation including by-laws
Finalisation of the restructuring of professional bodies
Economic Development
Building local capacity to develop effective and sustainable economic development strategies.
Exploring and strengthening urban-rural linkages and increasing SALGA’s involvement in URS & ISRDP.
Leveraging municipal economic assets.
Developing effective strategies to deal with the operational and economic impact of HIV/AIDS.
IDPs & PMS
Improving the relationship between development strategies, IDPs and council budgets, service delivery systems and institutional arrangements.
Mainstreaming community-based planning.
Improving municipal performance management systems.
Mainstreaming Gender.
Municipal Finance
Division of revenue.
Funding for FBS.
Implementation of MFMB.
Developing guidelines regarding tariff & indigent policies.
Service Delivery
Support for the implementation of basic services.
Restructuring of EDI.
Decentralisation of Health Services.
Transformation of the Water Sector.
Support for MSPs .
Development of a Labour Relations Environment that Promotes Service Delivery
Finalisation of an Institutional Framework for the sector.
Public Sector alignment and integration.
Restructuring of the municipal pension and medical aid funds.
International Relations
Strengthening Inter-municipal & OLG partnerships.
Mainstreaming NEPAD.
Revival of AULA.
Reform of international OLG bodies.
Capacity Building
Development of an integrated support & capacity building strategy.
Building a strong LG Leadership Cadre.
Roll-out of the knowledge sharing programme and the learning networks.
Improving SALGA’s on-site support capability.
Communications
Improving Municipal Communications.
Roll-out of the Local government portal and sector level systems integration.
Internal
Improving the public profile of SALGA.
SALGA Enterprises.
Implementation of the political and administrative restructuring of OLG.
3. INTERFACE WITH Municipalities
Currently, SALGA has the following direct support programmes for municipalities:
Core Councillor Training Programme
93% of approximately 8000 councillors have been through this programme.
Financial Management Training Programme
Approximately 700 councillor have gone through Module 1 of this programme.
HIV/AIDs Programme
Approximately 600 councillors have gone through Phase 1 of this programme.
TASK JE System Training Workshops
Approximately 1000 councillors and officials participated in these workshops.
WSSD report-back workshops
Approximately 160 municipal representatives have participated in this programme so far.
Financial Management Placement Programme & Budget Office
As part of the MFMB support programme, SALGA working with National Treasury and the World Bank will be training and deploying 9 accountants/graduates within municipalities who would thereafter work within SALGA’s national Budget Office offering financial management support to municipalities.
District Learning Network Programme
15 districts have been identified to participate in this programme.
Local Municipality Learning Network Programme
9 Local Municipalities have been identified to participate in this programme.
In addition, SALGA provides the following general direct support:
Policy Guidelines e.g. IDP guidelines, Access to Information Manual etc.
Labour relations on-site support and advice.
Monthly Voice magazine.
Twice-weekly electronic newsletter of topical issues (Hologram).
Quarterly seminar series (Hologram)
Roll-out of National and Provincial Communications Steering Committees aimed at building communications capacity and integrate it with national processes.
However, during the course of last year, the SALGA leadership identified a number of areas of improvement with regard to the organisation’s interface with municipalities:
The mandating and report-back process between SALGA and municipalities was poor.
Many municipalities, as well as political and administrative municipal leaders, were not aware of the full extent of SALGA activities and how they could effectively interface with the organisation.
Participation within SALGA political bodies and processes tended to be limited to a relatively small number councillors and officials.
Though those participating in SALGA processes were there as representatives of their respective municipalities, information regarding the outcomes of these processes seldom filtered back to municipalities and thus municipalities did not feel the benefit of their representation in such processes.
SALGA’s visibility within municipalities was limited.
SALGA’s ability to intervene and provide on-site support to municipalities was limited.
In order to address some of these concerns, SALGA has embarked on the following initiatives:
Improving the Mandating Process
All SALGA working group and committee agendas are distributed to municipalities first for a mandate before proceeding to provincial and national structures.
SALGA is also introducing a system of direct representation by municipalities on National Working Groups ( as opposed to only have provincial representatives/nominees).
SALGA is also seeking to expand the range of Working Group sub-committees to increase the opportunities for participation.
Improving the Interface with Municipal Leaders
The Consultative Assembly, representative of Mayors from each municipality was launched last year and is scheduled to meet on a quarterly basis. The purpose of this body is to brief Executive Mayors and Mayors, and obtain their views, about key developments within the sector as well as SALGA. The first quarterly meeting of the CA is due to take place in Nelson Mandela Metropolitan Council on 20th March 2003.
A number of meetings with Municipal Managers have been held to discuss how to assist Municipal Managers in accelerating the local government transformation process as well as key developments within the sector. A National Meeting of Municipal Managers is scheduled for 19th March 2003 and thereafter provincial meetings will be held during April – June 2003 to concretise the way forward.
Improving SALGA’s Visibility
In addition to SALGA voice, a twice-weekly electronic newsletter will be launched in May 2003.
9 provincial workshops to brief municipalities on the latest developments within SALGA will be held from April – June 2003.
Municipal Interventions and On-site support
Last year, the Chairperson of SALGA conducted a number of visits to municipalities which were experiencing governance problems Thereafter, it was agreed that this should be an integrated part of the Chairperson’s programme and such a municipal visits programme is currently being implemented.
A Municipal Support and Interventions Unit is in the process of being established within SALGA.
4. From Planning to Implementation: Working WITH Other Stakeholders
3.1 Relationship with DPLG
SALGA is currently working on a number of joint projects with DPLG such as the development of an integrated capacity building strategy for the sector, the IGR framework, the implementation of the KSF and so on. A number of joint meetings have been planned to ensure that the two organisations work together to strengthen the sector.
3.2 Relationship with Donor Agencies
To facilitate the implementation of its programme, SALGA has developed a number of donor relationships e.g. NORAD, Netherlands, AUSAID, GTZ, DFID. It is also exploring more donor relationships with USAID, the Japanese, the Finish and the French.
3.3 Relationship with Research Agencies and Specialist Institutions
SALGA is currently developing a database of key resources in the sector in partnership with the Hologram Programme and is currently negotiating a number of strategic partnerships with key parastatals and research agencies.
5. Key Challenges FOR SALGA
Whilst SALGA has recently made great strides, a number of challenges remain, namely:
Ensuring the long-term sustainability of the organisation.
Improving SALGA’s public profile.
Improving SALGA’s capability to provide direct support to municipalities.
Finalisation of the restructuring process and amendments to the Organised Local Government Act.
Embedding cultural change within the organisation.
OFFICE OF THE CHIEF EXECUTIVE OFFICER
1. Key Objectives
Assisting the CEO in the overall management of the Organisation
Acting as the Interface with politicians
Rebranding of the organization and improving it communications capability
Improving SALGA’s international and external relations
2. Structure of OCEO [Diagram not included]
Currently, only two managerial positions have been filled - the Manager: OCEO and the External Relations Manager.
3. Key Achievements: July 2002 to Date
Provision of tax advisory service to councilors.
Hosted CLGF Conference.
Hosted AULA Executive Committee.
Finalised LGIB Co-operation Agreement.
Finalistion of Commonwealth Local Government Good Practice Scheme.
Municipal interventions regarding governance issues.
CLGF and National HRD Conference Communication Strategy.
Formation of Local Government Communications Steering Committee.
4. Key Priorities for the Remainder of the Financial Year (until June 2003)
Ongoing implementation of Councillor Support Programme
Ensure AULA & IULA support
Put in place effective mechanisms for donor co-operation
Build international relations capacity through roll-out of LGIB co-operation agreement.
Monthly production of VOICE Magazine.
Launch another publication in addition to VOICE Upgrade the SALGA website
National Conference Preps
Visits to Municipalities
Capacity and skills audit for local government communicators and develop guidelines for effective communication in the sector.
Launch of SALGA Development Train.
Roll-out of the Municipal Support and Interventions Unit.
REPORT OF THE PROGRAMES DIRECTORATE
1. KEY OBJECTIVES OF THE DIRECTORATE
To provide support to the CEO in implementing strategic interventions.
To develop and implement customer satisfaction and needs analysis mechanisms.
To develop mechanisms to improve the interface with municipalities.
To develop and implement mechanisms to promote outcomes-based knowledge sharing.
To ensure that all of SALGA’s programmes are delivered efficiently and effectively.
To management of the restructuring process at a strategic level.
To manage and facilitate the interface with provinces.
To ensure structural alignment between provinces and national.
To develop and implement a strategic and business planning system.
To develop and implement an organisation performance management system.
To ensure that SALGA’s Committee Services operate efficiently and effectively.
2. STRUCTURE OF THE DIRECTORATE
[Diagram not included]
Role of Strategic Planning & Performance Management Department To develop and implement effective business planning and risk management tools for SALGA.
To roll-out an organisational performance management system at a national and provincial level.
To roll-out an employee performance management system at a national and provincial level in liaison with with the Manager: Human Resources.
To manage the implementation of annual customer needs and satisfaction surveys as well as stakeholder surveys.
To develop and implement mechanisms to improve SALGA’s project management capability at a national and provincial level.
To assist with the implementation of performance management systems within the sector.
Role of Peer Learning & Knowledge Sharing Department To facilitate the establishment of learning networks between municipalities and other relevant stakeholders.
To develop mechanisms to promote comparative learning between municipalities, other spheres of government and the private sector.
To develop and co-ordinate mentorship, coaching and placement programmes for municipal councillors and officials including exchanges with their public service, international and private sector counterparts.
To develop a repository of expertise in peer learning methodologies for wider use within the sector.
To facilitate an improvement in the efficacy of current municipal support and capacity building programmes in liaison with relevant national and provincial government and non-governmental stakeholders.
Role of Provincial and Municipal Support Department To facilitate an improvement in the interface between SALGA National and Provincial bodies.
To facilitate the effective integration of the SALGA National Office and Provincial Offices in liaison with the Corporate Services Directorate.
To develop and implement mechanisms to improve the interface of SALGA National Office with municipalities.
To develop and implement mechanisms to provide ongoing support to municipalities including the development of a Client Services Centre.
Currently, the Directorate is only staffed by the Executive Director and an Executive Secretary. The majority of staff will only start on 1st April 2002.
3. KEY ACHIEVEMENTS: July 2002 TO DATE
Development of a draft Ideal Municipality Benchmark.
Roll-out of the Hologram programme.
Finalisation of DFID Consolidated Municipal Transformation Programme in conjunction with other stakeholders.
Completion of preliminary audit of provincial offices.
Delivered a successful NGC.
Finalisation of a new performance management policy.
Development of a draft governance charter.
Development of business planning guidelines.
Develop of performance agreements for National Executive Directors.
Establishment of new Committee Services Unit.
4. KEY PRIORITIES FOR THE REMAINDER OF THE FINANCIAL YEAR ( UNTIL JUNE 2003)
Roll-out of the Knowledge Sharing Facility
Implementation of a stakeholder and customer needs/satisfaction surveys.
Implementation of 3 peer reviews:
Category A, B & C
Establishment of 2 learning networks
Districts
Local municipalities
Ongoing co-ordination of SALGA meetings with Municipal Manager’s.
Launch and roll-out of Municipal Excellence Awards Programme in conjunction with other stakeholders.
Roll-out of the CMTP programme.
Establishment of a municipal database.
Establishment of a skills database.
Development of performance management procedures.
Development and implementation of business planning & pm training programmes.
Facilitation of performance charters/KRDs and performance agreements for all levels of management at national and provincial level.
Management of the first business planning and performance management cycle.
Implementation of 9 Provincial SALGA restructuring/information sharing workshops.
Development and implementation of a municipal visits programme.
Improving the National/Provincial Interface – ongoing.
Attendance of Mancos/PECs
Site visits to provincial offices
REPORT OF THE POLICY AND STRATEGY DIRECTORATE
1. KEY OBJECTIVES OF THE DIRECTORATE
To identify policy gaps and initiate policy interventions
To support mechanisms regarding policy implementation
To develop intervention strategies regarding IGR
To develop partnerships and interfaces with other policy institutions
To establish and manage regional and international policy partnerships and interfaces
To undertake lead policy research
To establish mechanisms for the continuous assessment of legislative implications
To ensure proper systems are in place for monitoring and reporting on policy implementation
To establish mechanisms for translating and interpreting local government policy frameworks
To establish compliance mechanisms regarding policy
To develop a sustainable and comprehensive framework for LA21
To improve the institutional capacity of municipalities towards integration and co-ordination of IDP’s
Ensure the effective use of existing capacity and resources
2. STRUCTURE OF THE DIRECTORATE
[Diagram not included]
Currently the Manager: Municipal Infrastructure position is vacant along with the Research Officer positions.
3. KEY ACHIEVEMENTS: JULY 2002 TO DATE
3.1 Planning and Development
Contribution to WSSD
SALGA-led more than 108 local government delegates to the Summit
Contributed to the Chairperson’s text - discussion document for the Summit
Exhibition for Local Government and SALGA at Ubuntu Village
Organised pre-workshops to prepare Local Government delegates for the Summit
Position paper for SALGA’s delegates to the Summit
Preparations for the African Mayors Forum
Guideline on WSSD for Local Government
A case study on Sustainability in Local Governance - showcased at the Summit.
Post WSSD Workshops SALGA, in partnership with DEAT, organised 3 report back workshops on the World Summit on Sustainable Development (WSSD):
Gauteng: 26 November 2002 (GP, LP, MP and KZN) 59 Participants Free State: 28 November 2002 (NC, NW and FS) 56 Participants Eastern Cape 05 December 2002 (WC and EC) 39 Participants
Issues raised in all workshops include:
Integration of principles of sustainable development into IDP’s
Support & capacitate municipalities (including Ward committees) in programmes consistent with Local Agenda 21.
Co-operation between the 3 spheres of government and the role of SALGA in ensuring the needs of Local Government are taken into account.
The weakness of forums at local level which hamper the effective implementation of programmes and projects
Provincial government should enter into partnerships with municipalities when implementing projects at local level.
Establishment of a local Agenda 21 Forum in each province in order to ensure effective participation.
Development of a mechanism to integrate LA21 and IDPs Participation in structures such as:
Committee on Environment & Co-ordination (CEC)
Capacity building in Energy efficiency and Renewable Energy
Framework strategy on environmental education
SALGA contribution to the development of the national Strategy on Environment and Education by DEAT.
Workshop in Pietermaritzburg on 02 and 03 December 2002.
SALGA to compile guidelines for municipalities on Environment and Education based on the Summit outcomes
The Integrated Energy Strategy for Local Authorities
SALGA focus on processes towards an Integrated Energy Strategy for local government. The Energy Strategy is aimed at addressing the following key functions:
Public transport – encourage the use of public transport including cycling Electricity services – demand side management. Other energy services –expand strategic role of local government Independent Power Production – Municipalities need support in investigating IPPS in their areas – wind, methane from landfills, solar thermal etc. Public lighting – retrofitting with EE lamps Public buildings – conduct energy audits and introduce energy efficiencies (libraries, clinics, fire stations, sports fields etc)
3.2 Firefighting and Emergency Services
LRA stipulates 42 hrs.
Difficulty: necessitates introduction of an extra shift
Now consideration must be given to address Budget constraints
3.3 Disaster Management Bill (DMB)
SALGA provided valuable comments on the Bill.
Establishment costs
Approaches to implementation
Financial assistant to District Municipalities for management of disaster management centres.
3.4 Governance and Legislation
Legislation
Constitutional Amendment: The initial proposed amendments have made significant inroads into the legislative authority of local government. SALGA’s intervention resulted in the maintenance of the status quo but with stronger provisions dealing with the situation where a municipality is in a financial crisis or where it fails to approve a budget.
Local Government Laws Amendment Act: All the proposals of SALGA, save one dealing with the single SALGA structure, have been incorporated.
Municipal Structures Second Amendment Bill: This bill deals with the term of office when a municipality changes its type. SALGA put forward the position that the term of office must not be interrupted where there is a change in type. We also argued for a change in the law that would allow a mayor to be elected as such after having served two consecutive terms but in another municipality.
Municipal Council Policies
Cellular phone policy for municipalities A draft policy was formulated for municipalities to regulate the provision of cellular phones to councillors.
Mayoral Handbook:
The Consultative ASSEMBLY will debate a proposed handbook for mayors that will set out in detail the powers, functions and duties of mayors.
Remuneration of councillors:
SALGA has actively engaged the Minister for DPLG to relieve the plight of councillors. Whilst we are still engaging the Minister, we have made some headway in respect of the allowances to mayors being treated on the same basis as that of MECs.
Water Schemes
Transfer Policy: A major SALGA achievement is that the policy was developed jointly with the three national departments.
The outcomes of DoRA 2003 is a marked increase in the new budget: Transfer Grant makes provision for 116 million in 2003/4, 90 million in 2004/5 and 120 million in 2005/6 will be used for scheme rehabilitation, upgrading and down grading, including labour costs.
The SALGA position was developed through a series of workshops in 2002 and various SALGA structures were consulted to ensure common understanding is established.
There are 321 schemes, staffed by 8000 personnel, with replacement value estimated to be in the order of 8 billion, servicing about 6 million customers.
Policy was approved by MANCO in Nov and supported at the NGC commission.
150 municipal representatives attended the Water Transformation Commission. We are now embarking on the process of ensuring municipal council’s adoption of the policy.
The first national workshop was held in Johannesburg on 21 Jan 2003 attended by 70 participants, representing 36 WSA's, while transfer impacts 84 WSA’s, really critical figure, based on numbers of staff and size of infrastructure is about 50 so attendance so early in the year was fairly good.
Currently taking the process to the provinces. The Eastern Cape session was attended by 40 people representing 15 WSA's on 4 March 03. Over 70 responses have been received for the Mpumalanga session on 7 March 03.
Sanitation policy: DWAF is beginning to realise that a major contribution towards solving the sanitation crisis, is the greater involvement of SALGA.
SALGA was invited to attend Portfolio committee session on 6 March 03.
Contributed to Ministerial consultation on 1/10/02.
Allocated R 1 million to SALGA in Masibambane BP# 2 to assist us with our sanitation work. It was agreed with the Minister to priorities the Free State in finding solutions to the bucket system. The Free State has 125 000 households using buckets.
At a session to initiate this process held in Matjabeng on 30 January 50 attendees representing 15 municipalities were present. It is anticipated that these numbers will increase as the process gains momentum. The next session is scheduled for 26 March in Manguang, where actual strategy informed by municipalities is to be developed.
Water Services White Paper development: The fact that the Minister extended the deadline for comments is largely as a result of our intervention. Also, our suggestion that a team be formed to work on the final draft has resulted in the White Paper Core Team process, where SALGA is playing a leadership role. Since July 2002, a number of sessions have been held.
A SALGA reference team including 6 municipalities from across the municipal spectrum was established to develop initial comment. Concerns were raised with DWAF at 3 bi-laterals.
In the White Paper core team SALGA is fortunate to be represented by municipalities from metros, district and locals municipalities, to ensure broad input. The core team has met 4 times to date, with a final session scheduled for end of March 2003.
Official SALGA comment will be released soon after the final draft White Paper is released by the Minister. SALGA will conduct its own round of municipal consultations at this point.
Expanded SALGA profile: During the past months we have really been in a position to raise our profile in a number of ways, i.e. DG meeting on 11/02/03, political ministerial bi-lateral on 13 Feb, portfolio committee briefing on 12 Nov 2002.
SALGA has also improved its profile in all Masibambane structures at both the national and provincial levels, and are playing a lead role in the extension of Masibambane to all provinces.
SALGA has received 4,5 million in direct support from Masibambane to date. This figure is expected to remain at this level for the next 3 years, once Masibambane Two comes into effect. There is significant display of confidence in our organisation. SALGA’s work will also benefit from Masibambane extension activities in the provinces, with 5 million having been earmarked for Free State, and another 5 - 8 million for Mpumalanga.
We have also managed to enhance SALGA participation in WRC projects, by expanding the pool of SALGA reps to include rural and smaller municipalities.
The PAWS project is also developing well, and we hope that the 4 pilot municipalities will be able to say that they benefited from SALGA's involvement in the programme. While the PAWS project does not provide financial support to municipalities, Uthukela DM, Matjabeng LM, Ulundi LM and Nkomazi LM are all deriving the benefit of capacity support from the British PAWS partners.
The first national report back meeting is expected on 5 and 6 May. Site visits have gone well, and the municipalities are very pleased that SALGA managed to make the project municipality driven rather than DWAF.
Our profile as SALGA has also been enhanced internally, as we have been able to improve the quality of our services to our own members through MSWG workshops [Sept and Oct 2002], through increased presentations to councils, through an article in Voice in Nov 2002, and the Water Commission at the NGC [Masibambane gave R500 000 worth of sponsorship].
We have also extended the Technical support team, and brought in voices of non-metro municipalities into the process. This forum is becoming a good advisory forum for the MSWG.
4. KEY PRIORITIES FOR THE REMAINDER OF THE FINANCIAL YEAR (TILL JUNE 2003)
Planning and Development
Local Agenda 21 Moving from Agenda and planning, to implementation and action
Entrench the practice of looking at issues and decisions from the perspective of economic, social and environmental impacts Ensure support to municipalities in their implementation of Local Action 21 and outcomes of the World Summit on Sustainable Development
Appoint a consultant to compile implementation guidelines/toolkit on sustainable development based on WSSD Outcomes Workshops conducted.
Conduct workshops to present and discuss implementation guidelines for municipalities
Framework distributed to all municipalities and workshops held
Develop proposals on how to influence LA21 in IDP processes at Local and Provincial level
Arrange internationally orientated training package on LA 21 and Habitat Agenda
Link SALGA’s LA21 website with ICLEI, DEAT, DPLG and other partners
Collect data on Environmental Education for the development of a strategic framework document
Sustainable Energy for Environment and Development
Develop strategies and Framework for implementation of SEED Municipalities Entrench the practice of looking at issues and decisions from the perspective of economic, social and environmental impacts
Conduct energy audits in selected/sample municipalities in conjunction with energy partners (BONESA, DME, DoH, Eskom, DEAT)
Collect data on energy projects being implemented by municipalities
Review and assess existing energy projects within municipalities.
Economic Development
Need to develop economic assessment checklist and/or toolkit
Economic Development Conference by end of 2003
Entrench the practice of looking at issues and decisions from the perspective of economic, social and environmental impacts Collect data on LED best practices for the development of an integrated toolkit Integrated framework for municipalities on Sustainable LED and Toolkit LED Toolkit for municipalities IDP (Planning Processes and Systems)
Improve methodologies and linkages (e.g. inter-sphere planning linkages, public participation and local governance)
Integrate the principles of LA21 and SEED into planning and development processes
Entrench the practice of looking at issues and decisions from the perspective of economic, social and environmental impacts. Assessment and comment on sampled IDP’s Convene Biannual IDP Managers Forum/Network with key stakeholders Advocate and facilitate the creation of a single reporting centre (NT & DPLG) Advocate for CBP recognition in the IDP process (DPLG) Support CBP Manual Development Facilitate and support wider implementation of CBP within municipalities Support the strengthening and improvement of linkages between CBP and IDP Housing
Shift from quantity to quality
Shift from consumer to building for citizens
Improve commitments towards meeting second generation rights (and needs)
Entrench the practice of looking at issues and decisions from the perspective of economic, social and environmental impacts Develop a discussion Paper Establish pilot programmes Facilitate the signing of MoU between SALGA and DoH in respect of the Habitat programme/agenda Transport Planning
Entrench the practice of looking at issues and decisions from the perspective of economic, social and environmental impacts Develop SALGA Action Plan to inform deployed participants in COTO programmes and meetings Establish terms of engagement over selected matters (ToR) Overloading control
Municipal Finance And Intergovernmental Fiscal Relations
Modernising municipal finance
Improving efficiency in rate collection
Improve the quality of reporting on municipal finances
Protect the current revenue mix
Municipal Fiscal Environment Strengthen technical capacity Undertake Comparative Analysis Develop a Local Government Annual Fiscal Review Report, in consultation with key stakeholders
Develop mechanisms to analyse the municipal fiscal environment
Undertake a country-wide survey on current municipal fiscal dynamics
Analyse fiscal capacity of different categories and types of municipalities
Continuously assess fiscal implications of legislation on municipalities
Ensure Integrity of the Information/Data towards the Budget Process and DORA
Develop a comprehensive position paper to inform the budget process Ensure that Local priorities merge with National policy Identify Local Government pressures Conduct a comprehensive survey to give firm indicators on financial pressures and key priorities To identify and assess the extent and cost of un-funded mandates e.g. primary health care Review Equitable Share formulae once disaggregated data from census 2001 is available Ensure alignment between IDP’s and budget processes
Enhance compliance with Key Legislation
Implementation of the Municipal Finance Management Act, and the Property Rates Act as well as other relevant legislation and by-laws. Capacity building on municipal finance Collaboration and consultation with stakeholders Contribute towards the development of the MFMA implementation strategy Develop guidelines on MFMB Organise provincial workshops Develop a capacity building programme around MFMA implementation Develop an implementation framework for the Property Rates Act Contribute to capacity building between DPLG/National Treasury and SALGA HRD
Municipal Database
Improve budgeting and financial reporting Ensure access to, and availability of credible information to inform SALGA’s position in representing municipalities on budget issues Ensure integrity of the information that forms input into policy Continuous consultation with key stakeholders
Municipal Budget Week
Improve participation in the budget process at local government level
Ensure that the budget week is utilized to identify successes and failures in a manner that builds on the challenges and priorities of local government, and that moves us forward to better planning and implementation of budgets.
Promote the need for aligning Integrated Development Plans with the budget, and reviewing the budget based on identified priorities
Promote Budget Week as an Annual Policy statement
Municipal Budget Office
Promote the development of realistic budgets
Promote information flow and sharing on municipal budgets
Create a network that contributes to municipal finance Develop TOR identifying focus areas for the budget office Appoint nine (9) provincial accountants/graduates Source funding support from National Treasury and donor institutions Undertake comprehensive data collection on municipal budgets/financial statements etc Consolidate and analyse information Research on Municipal Finance and Fiscal Relations
Undertake lead policy research on municipal finance and fiscal debates
Participate in national, regional and international research fora relating to MFFR
Establish fiscal research needs of municipalities and work towards bridging them Assess the distributive nature of infrastructure development to poor communities at local government level Impact of national allocations on service delivery at local government level Identify policy gaps and develop policy interventions Develop partnerships and interface with other finance and fiscal policy institutions
Governance And Legislation
Intergovernmental Relations
Increase the focus of policies and legislation on co-operative governance and the role of SALGA
Improve quality and consistency of SALGA participation in OGR structures Develop an effective IGR strategy for SALGA Facilitate Good Governance within Municipal Sector
Development of SALGA policy positions and support programmes in critical governance issues
Legal and Drafting Services
To impact on proposed legislation
To impact on municipal by-laws To provide drafting and legal services to municipalities, other policy units and SALGA as a whole Governance and Legislation Database
Increase accessibility to local government policy and legislation Increase accessibility to local government research and policy institutions
REPORT OF THE HUMAN RESOURCES DEVELOPMENT DIRECTORATE
1. KEY OBJECTIVES OF THE DIRECTORATE
To continuously improve SALGA’s ability to deliver high quality services to its members whereby the Human Resources and Labour Relations environment promotes efficient and effective service delivery.
To increase the impact and influence of organised Local Government.
To increase the skills base within the sector and thus the country at large.
2. STRUCTURE OF THE DIRECTORATE [Diagram not included] Currently , the Manager: Capacity Building is vacant, along with the Training Officer positions and the positions in the Executive Office.
3. KEY ACHIEVEMENTS: JULY 2002 TO DATE
Labour Relations
Multi year salary and wage agreement
On the 19th July 2003 history was made in local government collective bargaining with the conclusion of a first multi year salary and wage agreement under the auspices of the South African Local Bargaining Council (SALGBC) between SALGA, as the employer body representing all the 284 municipalities on the one hand, and SAMWU and IMATU representing organised labour in the sector. Not all was the conclusion of such agreement a major achievement, but also the fact that it contained a specific provision of non-applicability to senior management in municipalities, which is what is referred to nowadays as Section 57 employees. The effect of this multi year agreement has been to allow sufficient attention and space to other priority areas of restructuring like conditions of service, categorisation of municipalities, wage curve bargaining etc. Coupled to this, municipalities are able to budget adequately for salary increases for subsequent years in line with their IDPs.
Capacity Building/ Training Programme on the T.A.S.K. Job Evaluation
With the conclusion of the T.A.S.K. Job Evaluation between the parties to the SALGBC in July 2001, SALGA was faced with arduous task of training councillors and officials in the implementation of the JE system which, roll out or implementation will come into effect from July 2003. In the month of September 2002,SALGA undertook training workshops in the 9 provinces around the country. Approximately 1000 representatives of municipalities have undergone training on the system. It must be mentioned that the training was conducted using internal SALGA capacity at considerably reduced cost to SALGA. In addition SALGA undertook training for the JE Managers in the JE Regions with regard to roles and responsibilities, writing job descriptions, database management etc. Beyond the training process, SALGA has gone on to develop a database for job evaluation.
3.1.3 SALGA Active involvement in the process towards the ‘Integration of the Public Sector.
The President of South Africa, in his recent State of the Nation Address reflected on government’s desire to bring about harmonisation in remuneration practices and conditions of service between local government and the public service to effect seamless and improved service delivery across the tiers of government. The President’s pronouncements in the above regard have been preceded by SALGA involvement, first at a technical level in the task team set up through the PCC to conduct a status quo investigation between local government and the public service. Needless to say, SALGA is part of a political Steering Committee with DPLG and DPSA. As this report is written, the framework to drive the process has been agreed upon between the major stakeholders. I may just hasten to add that the SALGA NGC has taken a policy position on the matter. Clearly, SALGA’s input and active involvement in the process thus far and beyond the President’s speech is historic from a perspective of the current strategic direction that is being followed in the above regard.
The SALGA Labour Relations Database
SALGA has recently concluded work on a labour relations statistics database aimed at providing detailed management information to assist in collective bargaining, management reporting, trends analysis, compliance with legislative requirements such as employment equity reports etc. The project was done in two phases, first before the advent of the new local government dispensation in 2000 and the 2nd towards the end of last year. The project was completed on the 28th February 2003 and is ready for use. Through this database, municipalities would, inter alia, be able to calculate total cost to employment of their employees.
Medical Aid Restructuring: Capping on the contribution rate
A collective agreement was signed by the parties to the SALGBC on the restructuring of the medical aid dispensation, which is to take effect on 01 July 2003. More than anything, the high point of the agreement is the capping of the employer contribution up to a maximum of R1639.00 in such a manner that the employer – employee contribution split will be 60% - 40%. A municipality’s liability on medical aid will for first time be limited to a certain cut off point.
Capacity Building
3.2.1 Integrated Capacity Building Strategy for Local Government
A draft Integrated Skills Development Strategy guided by the underlying philosophy and intent of the Skills Development Act and South African Qualification Authority legislation has been developed.
The draft document presents a strategy that focuses on removing key constraints on performance enhancing capacity building within municipalities.
The core of the strategy is to focus attention on training, development and learning within Council workplaces and to bring together those factors that will produce visible improvements in workplace learning, expertise, practices, and new modalities.
In addition, the strategy highlights the critical problem for the sector of scarce high-level skills, particularly in the management and key professional disciplines.
The draft Skills Development Strategy begins with:
a review of the legislation affecting capacity building within the local government sector and considers the present capacity building context
An organising framework for thinking about skills development for local government
a description of the critical constraints facing capacity building in the sector.
A major proposal in the paper is to introduce:
a workplace learning facilitating, coordinating and managing mechanism in the form of a Local Government Workplace Learning College (LGWLC). It is argued that a high profile, tightly staffed, College of this kind, focused not on training but on harnessing the right expertise for capacity building in the sector, has the potential to open the door to high quality workplace training with concomitant improvements in work performance.
In conclusion, high level bi-laterals between SALGA/DPLG in terms of developing a single Integrated Capacity Building Strategy for the sector are continuing and we hope to have a final document by the end of June.
3.2.2 SALGA’S Core Councillor Training Programme (CCTP)
The Core Councillor Training Programme was designed as an induction programme for old and new Local Government councillors elected after the
5 December 2000 Local Government elections through assistance by the Norwegian Development Agency (NORAD) and technical assistance from the Norwegian Association of Regional and Local Authorities (KS)
The CCTP was implemented during the first ninety days after the 5 December 2000 local government elections in 80 major towns throughout the country and 93% of the approximately 8000 councillors went through the programme
NORAD has funded Phase Two of the CCTP, to be implemented in July/August 2003 i.e. half way through the councillors term of office.
An impact assessment study was conducted in September 2002 to prepare for the development and implementation of Phase Two of the programme.
Forty (40) councillors, Mayors, Speakers and Municipal Managers coming from throughout the provinces participated in the assessment.
3.2.3 SALGA/DPLG Financial Management Training Programme
The DPLG and SALGA are collaborating on Financial Management Training Programme for councillors, previously ‘Project Viability’.
The primary target group are those councillors who are participating directly and continuously with financial matters of a municipality or district council and secondary, those councillors who are participating indirectly.
To date, approximately 700 councillors have gone through module one and training sessions in all modules should reach as many councillors as possible without sacrificing quality.
3.2.4 SALGA/DoH HIV/AIDS PROGRAMME
SALGA and the Department of Health are collaborating on a HIV/AIDS training programme for local government planners i.e. both councillors and officials. During Phase one of the programme approximately 600 councillors were reached by the programme. The focus of the programme is to assist local government through a toolkit, to integrate issues of HIV in their municipal IDP’s.
4. KEY PRIORITIES FOR THE REMAINDER OF THE FINANCIAL YEAR (TIL
JUNE 2003)
4.1 Labour Relations
4.1.1 Uniform Conditions of Service for the Sector (inclusive of pension and medical aid restructuring)
Development of Guidelines for the Remuneration of Municipal Managers
Development of an HR and Collective Bargaining Framework wrt the ffg: - Regional Electricity Distributors
Water Services Restructuring
Establishment of the HR Policies and Procedure Database
Uniform employer policy – through the HRD Conference in March 2003
4.2 Capacity Building
4.2.1 Integrated Capacity Building Strategy for the Sector
A process for developing a single strategy for the sector with the DPLG is underway. Functional teams have been formed and a joint SALGA/DPLG workshop has been scheduled. The workshop will ensure that:
a clear and common definition of capacity building for the sector is developed
roles are clarified in respect of who is doing what in terms of capacity building
evaluate all areas that both DPLG/SALGA are working on
a small team be constituted which will take the process forward
a clear process of documenting annual municipal needs is defined
4.2.2 Development and Implementation of the Core Councillor Training Programme – Phase Two
SALGA anticipates to roll out the programme in July/August 2003 and dates thereof are still being finalised. The implementation of the programme will be deliberately biased towards all forty-seven district and local municipalities.
Materials are being developed as informed by the impact assessment and the draft SALGA Skills Development Strategy.
4.2.3 Councillor Development Programme
SALGA through the LGWSETA Discretionary Grant will be implementing a Councillor Development Programme in June 2003. Six hundred and thirty councillors nationally will go through the programme i.e. seventy councillors per province.
The objectives of the CDP are:
A programme that will provide continuity of education by allowing entry to higher levels of tertiary education, preferably at NQF5 level.
The programme is aimed at equipping councillors with the necessary
skills to be efficient managers of their responsibilities towards their constituents.
This programme is designed to encourage councillors to address the past imbalances and be motivated by the potential of South Africa’s future.
Improving and enhancing Local Councillors influence on policies, programme and service delivery at the local level; and
Developing basic skills related to analysing and interpreting data relevant to local governance
The programme is aimed at the following target group of councillors:
It must preferably be first time councillor/s
Councillors who need capacity or have not been capacitated before
Must have basic understanding and ability to read and write English.
N.B. An application for a Leadership Development Programme for senior Councillors, Mayors and Speakers has been lodged through the DBSA and we anticipate to implement these programmes in September 2003.
4.2.4 Develop a Support Programme through the LGWSETA to assist municipalities in Developing Meaningful Work Place Skills Plans, Councillor Annual Needs Analysis and Determination of Priority Areas
4.2.5 Ensure the Coordination of Capacity Building Initiatives by Participating in all Relevant Forums and Creating Linkages and Partnerships
4.2.6 Development and Implementation of Placement, Coaching and Exchange Programmes
REPORT OF THE CORPORATE SERVICES DIRECTORATE
1. KEY OBJECTIVES OF THE DIRECTORATE
To develop and implement financial management systems.
To develop and implement HRM policies, procedures and systems.
To develop a ICT knowledge management strategy.
To develop integrated IT systems (including integration with the sector as a whole e.g. SA online).
To implement a change management and corporate culture programme.
To implement an effective internal HRD programme.
To manage and implement mechanisms regarding administration and logistics.
To develop a security policy.
To develop and implement an asset management system.
To establish and build the capacity of the resource centre.
To manage office accommodation.
To manage internal communications
2. STRUCTURE OF THE DIRECTORATE
[Diagram not included]
3. KEY ACHIEVEMENTS: JULY 2002 TO DATE
Finalisation of 1999/2000 and 2000/1 audits.
Development of new financial policies and procedures.
Development of new HR policies.
Establishment of an Audit Committee.
Establishment of Procurement Committees.
Initiation of a new electronic financial management system.
Establishment of a resource centre.
4. KEY PRIORITIES FOR THE REMAINDER OF THE FINANCIAL YEAR ( UNTIL JUNE 2003)
Finalisation of restructuring process
KRDs of posts
Job evaluations
Placement of staff
Finacial restructuring issues e.g. assets & liabilities, roll-out of finance & admin policies, levy collection, agreement on method & rate of transfer of funds to provinces, VAT, RSC levies etc.
ICT
Improvements to Website, implementation of SALGA.NET as main address
Stabilize national network & ensure information security
IT/KM Strategy
Audit of existing systems and proposed way forward with regard to integration of systems/databases (linking to Knowledge Management Strategy)
Human Resources
Advertise, job evaluate & fill critical managerial (& other) posts
Finalisation of outstanding HR policies (O/T, Disciplinary etc.)
Training of staff and implementation of HR policies
Development of Skills Plan for SALGA & Skills Development Strategy
Other HR legislative compliance issues e.g. EE/AA
Establish ongoing Team Building programme
Finance & Admin
Finalise audited Financial Statements 2001/2002
Compliance with PFMA
Preps for early finalisation of 2002/2003 financial statements
Sophisticate levy collection
Full Implementation of PERSAL system
Monthly management reporting on actual expenditure trends
Training of staff w.r.t finance policies & procedures + full implementation
Weekly cashflows and monthly bank reconciliations
Finalisation of asset register and write of assets Implications of Administrative Justice Act, Access to Information Act
Sponsorship strategy, relationship building, (including provincial needs..)
Work Flow system including filing and archiving system, reporting mechanism
Security policy
1. SALGA EASTERN CAPE
Institutional Development Conduct study on the remuneration of senior municipal employees.
Provide councillors with an opportunity to obtain an academic qualification in local government.
Formulation of conciliation teams at District level to increase SALGA EC’s visibility with regard to labour disputes.
In colloboration with the provincial department, develop a performance measurement tool for municipalities.
Disseminate information on the devolution of powers and functions.
Intervene in all municipalities in crisis.
Disseminate the latest information on councillor remuneration.
Social Development Undertake consulations on sanitation policy document.
Engage DWAF with regard to transfers.
Recruit a Water Services Officer.
Conduct a survey on existing water service delivery and partnerships.
Adopt Provincial Cabinet’s resolution on the establishment of an Eastern Cape Municipal Development Corporation.
Development Finance Ensure SALGA EC books audited by the Auditor-General.
Conduct information session for municipalities with regard to the conditions attached to transfers.
Levy collection.
Economic Development Implementation of SALGA-Mopani Development Train.
Assist municipalities in the IDP reviewal process.
Gain representation on the Provincial LED Fund Committee.
2. SALGA FREE STATE
To be laid on the table.
3. SALGA LIMPOPO
Policy Develop devolution guidelines for member municipalities
Draft definition of roles and responsibilities for political structures, office bearers and municipal officials.
Pro-Forma guideline on agency agreements between districts and local municipalities and among municipalities
Framework for local Government in intergovernmental structures
Establishment of a policy unit in the province
Property Rates bill
White paper on Traditional leaders and Governance
Joint policy position on Transfer of Water Services
Training and Capacity Building Financial Management Course through WITS running
Assist municipalities with Skills Development plans
WARD Committee Training
Internal Human Resource matters
Labour Relations Provincial Human Resource Conference
Dispute Resolutions
Job Evaluation
Essential Services
Water Issues Collacom Secretariat replacement
Technical Assistance for SALA-Limpopo
Finalise WSP Agreements
DBSA Transfer Support Program
Provincial Transfer Strategy
Implementation of Communication Conference Resolutions Development of an implementation plan
Representation of SALGA-Limpopo in the Provincial Media Liaison Officer’s
Develop a Communication Policy for municipalities
Establishment of Communication Units/ Departments
4. SALGA NORTHERN CAPE
National Program/Activities. HR Provincial & National Conferences happening Feb. and March respectively.
SALGA/MOPANI LED Train Project May 2003.
Provincial and National Conferences (Still 2 Confirm dates.).
HIV/AIDS Training Program Module II.
Provincial Programmes/Activities. Mainly working groups Activities.
IGR- Launch of Councilor's Toolkit.(March).
HRD- LR training Program continues to Module II & New LRA amendments.
Mun. Services- Complete Regional W/shops on Implementation of FBS towards Provincial Conference.
Finance- Finance Task Team based on requests.
Special Projects- Disabilities Prog. Contd. & Expansion to other regions.
Engage Provincial Youth Comm. Of Structured Youth participation in LG.
SED- SALGA/Mopani Project.
Internal Processes. Restructuring Processes w.r.t. conclusion of BCE & PMS, Systems Integration, 2003/04Business Plan Dev. & Programmes Integration.
5. SALGA NORTH WEST
Municipal Services Workshops
Transfer of water services
Environmental Affairs and Waste Management
Maintenance of roads (training workshop in collaboration with Black Top)
Awaiting national programme (alignment)
Consultative meetings
Meeting with MEC for Transport to discuss key
issues such as
Issuing of motor vehicle licenses
Condition of roads in the NW Province
Jurisdiction of traffic officers as a result of demarcation
Quarterly meetings with MEC to discuss transport and traffic matters
Human Resources Management/Development Provincial Policy Workshop : 4 and 5 February 2003 followed by National Policy Workshop during March 2003
Capacity Building Projects :
Report writing and minute taking
Ward committees (in collaboration with DLGH)
Councillors (DBSA)
Social and Economic Development Mopani SALGA Development Train (20-22 May 2003, Klerksdorp)
North West Economic Development Indaba 2003
IDP’s in collaboration with Developmental Local Government and Housing
Awaiting information on national programme (alignment of key focus areas)
Governance and International Relations Powers and functions
By-laws
Awaiting national programme
Finance Division of revenue – workshop in collaboration with the FFC
Anti-corruption training seminar
Personal Casualty Insurance for Councillors
N.B. Awaiting national programme Special Projects Municipal HIV/AIDS best practices competition
Master Training HIV/AIDS Phase 2
Initially – provinces to arrange
New arrangement : Department of Health to meet with SALGA (National office)