Presentation to the Parliamentary Portfolio Committee 12 March 2003

1. Presentation to the Parliamentary Portfolio Committee 12 March 2003

2. Contents • The New SALGA • Achievements: July 2002 to date • Priorities till June 2003 • Medium-Term Priorities 2003/6 • Improving Direct Support to municipalities • From Plans to Implementation • Working with other Stakeholders • The Budget Process

3. Our Vision • A developmental and co-operative local government system in South Africa that is democratic and provides a better life for all • Municipalities that are well capacitated and sustainable and deliver high quality services in an equitable, affordable and accessible manner

4. Our Mission • An integrated, sustainable organised local government association that: • Acts as the voice of local government in provincial, national, regional and international relations; • Supports and strengthens the capacity of municipalities; and • Serves as a centre for knowledge and information management • through (dedicated political leadership and) the provision of professional value-adding products and services

5. Our Strategic Objectives To continuously improve SALGA's ability to deliver high quality services to its members whereby: a. Municipal development strategies are sustainable and improve the lives of the poor. b. All municipalities have effective IDPs and Performance Management Systems. c. All municipalities have effective financial management systems and are financially viable. d. Democracy and accountability at a local level is deepened. e. The quality and rate of municipal service delivery is improved. f. The HR and labour relations environment promotes efficient and effective service delivery. 2. To increase the impact and influence of organised local government. 3. To increase the skills base within the sector within the context of the National Skills Strategy 4. To increase knowledge sharing and improve the communications capacity as well as vertical and horizontal connectivity of OLG and municipalities. 5. To leverage the collective buying power of municipalities to benefit the sector. 6. To ensure that South African local government plays a critical role in furthering Africa's development at a regional and international level.

6. Our New Structure Note: Representative of 1st 3 levels Actual Provincial Structures vary

8. Achievements: July 2002 to Date

9. Achievements to Date • 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 e.g. • Quakeni (EC), Moqhaka & Dihlabeng (FS), Taung & Bela bela (NW)

10. Achievements to Date • 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 • Chairpersons Intervetion in the LGWSETA • SALGA/DPLG agreement on a joint approach to developing an Integrated Capacity Building Strategy for the Sector

11. Achievements to Date • Training & Information Sharing • 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.

12. Achievements to Date • 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.

13. Achievements to Date • Internal Restructuring • Adopted & Finalised New Administrative Structure • Developed new Internal Systems and Policies • HR & Finance policies • Audit and Procurement Committees • PM policy • Draft Governance Charter

14. Priorities until June 2003

15. Priorities till June 2003 • Increasing the quantity and quality of engagement with, and serviceto, municipalities. • Developing a clear understanding of municipal needs and capacity. • 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. • Rolling-out an ongoing programme of visits to municipalities. • Finalisation of the integrated capacity building strategy. • Stabilisation of LGWSETA • Appointment of turn-around manager • Constitutional changes, new systems, professionalisation of management • Redeployment of representatives

16. Priorities till June 2003 • Establishment of the Knowledge Sharing Programme • Launching the District and Local Municipality Networks • Districts • AMATOLE (EC), CACADU (EC), THABO-MAFUTSAYANE (FS), SEDIBENG (G), WESTERN (G), UGU (KZN), UMGUNGUNDLOVU (KZN), WATERBERG (L), VHEMBE (L), SEKHUKHUNE (M/L), ENHLAZENI (M), FRANCES BAARD (NC), KHARA HAIS [UPTINGTON] (NC), SOUTHERN (NW), BOPHIRIMA (NW), BOLAND (WC) • Local Municipalities • KING SABATA DALINYEBO (EC), EMFULENI (G), MOGALE CITY (G), MATJHABENG (FS), UMHLATHUZE (KZN), POLOKWANE (L), MBOMBELA (M), SOL PLAATJE (NC), RUSTENBURG (NW) • Establishment Programme for each Network • Discussion paper, peer review, Master Class, research projects • Launch of Municipal Excellence Awards • Launch the LG Portal

17. Priorities till June 2003 • SALGA Databases • Municipal • HR policies • Legislation • Water • LG Resources • MFMA implementation • Tool-kits • Sustainable Development • Economic Development • CBP manual

18. Priorities till June 2003 • Establishment of a Budget office • Municipal Budget Week • Roll-out of the SALGA Development Train • Finalisation of the political and administrative restructuring process • Improving organizational efficiency and effectiveness and instilling a new organizational culture • Building the public profile of SALGA • National Conference Preparations • Implementing the NGC Resolutions

19. Medium-Term Priorities 2003/6

20. Key Informants • NGC Resolutions • State of the Nation Address • Budget Speech

21. Priorities 2003/6 • 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

22. Priorities 2003/6 • 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.

23. Priorities 2003/6 • 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.

24. Priorities 2003/6 • 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 • Skills audits, District CSC in line with MPSCs • Roll-out of the Local government portal and sector level systems integration (ICT strategy for the sector).

25. Priorities 2003/6 • Internal • Improving the public profile of SALGA • Local Government Day: 5th December • SALGA Enterprises. • Consolidation of the political and administrative restructuring of OLG.

26. Improving the SALGA/Municipal Interface

27. Historical Interface • Participation of municipal representatives in SALGA processes • Training • Policy Guidelines e.g. IDP guidelines, Access to Information Manual etc. • Labour relations on-site support and advice. • Communications Tools • Monthly Voice magazine. • Twice-weekly electronic newsletter of topical issues (Hologram). • Quarterly seminar series (Hologram)

28. Areas of Concern • 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 • Weak link between municipal reps and municipalities – latter not feel benefit of participation • SALGA’s visibility within municipalities was limited • SALGA’s ability to intervene and provide on-site support to municipalities was limited

29. Improving the Interface • Improving the Mandating Process • SALGA working group/committee agendas distributed to municipalities first for a mandate before proceeding to provincial and national structures. • Introduction of a system of direct representation by municipalities on National Working Groups ( as opposed to only have provincial representatives/nominees). • Expand opportunities for participation. • Working Group sub-committees • Improving the Interface with Municipal Leaders • The Consultative Assembly • Meetings with Municipal Managers

30. Improving the Interface • Improving SALGA’s Visibility • Additional twice-weekly electronic newsletter • Provincial workshops • Municipal Interventions and On-site support • Institutionalisation of Municipal Visits programme • Roll-out of Municipal Support and Interventions Unit

31. The Budget Process

32. 2002/3 Estimated Sources of Income INCOME • National Government • Equitable Share Grant R15m • Restructuring Grant R7m • Levies R98m TOTAL SALGA REVENUE R120m • Hope to augment with donor funding and dividends from SALGA Enterprises

33. M SALGA National R56,8 SALGA Gauteng R7,8 SALGA Limpopo R3,5 SALGA North West R2,4 SALGA Mpumalanga R1,8 SALGA Free State R3,9m 4 other SALGA R20.5 regions (est) TOTAL R96,8 2002/3 Expenditure Estimates

34. Estimated Expenditure til June 2003 • SALGA National, Northern Cape, Free State, Eastern Cape, North West • Approx. 42m (not including donor funding)

35. 2003/4 Income Projections • National Government • 20 250 000 • Decrease from previous FY • Levies • Same levy formula • Invoices - March 2003 • Income estimates - April 2003

36. 2003/4 Business Planning & Budgeting Process • 1 Jan to 21 Feb 2003 • Standard guidelines and templates for budgetary process • Finalisation of current financial data 2002/2003 f/y • Agreement on overall split of total income • 27 Feb • SALGA overall strategic session (priorities for 2003-2006) • Workshop report distributed to all 5 March 2003 • 28 Feb - 11 April 2003 • Provincial, Directorate and work group strategic sessions held in line with overall priorities set • 11 - 18 April 2003 • Provincial SALGA offices to consolidate provincial budgets (including working group plans) for central consolidation • 21 - 25 April • SALGA National Office (Programmes Directorate and Finance)develop consolidated business plan & budget including national & provincial working groups and Pretoria & Cape Town offices • 8/9 May 2003 • SALGA Extended Manco Business Plan & Budget Workshop followed by Exco

37. From Planning to ImplementationWorking with Other Stakeholders • DPLG • Lots of areas of synergy • Joint meetings…Lekgotla • Donors • Build on existing relationships • Other Govt Depts/Parastatals, Research and Development Agencies • Strategic Partnerships

38. Key Challenges • 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.

39. Thank You!