Municipal Demarcation Board Strategic Plan and Budget (2012-2015)

1. STRATEGIC PLAN AND BUDGET 2012 to 2015MUNICIPAL DEMARCATION BOARDBRIEFING TO THE PORTFOLIO COMMITTEE ON COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS28 FEBRUARY 2012 REPRESENTATION TEAM Mr LJ Mahlangu Chairperson: Municipal Demarcation Board Ms N Gwayi Deputy Chairperson: Municipal Demarcation Board Mr SM Radebe Chairperson: Audit & Risk Committee Ms MI Mathatho Acting CEO: Municipal Demarcation Board Ms Mahlangu Acting Chief Financial Officer

2. OUTLINE • Introduction • Recap from Last Briefing • Progress and Status on Key Actions • Mandate of the MDB • Work Programme of MDB • Key outcomes of previous Demarcation • Timeframe for the Current Boundary review process • Types of Municipal Boundary Redetermination • Strategic Focus Areas for 2012 to 2015 • Key Results Areas • Critical Assumptions, Risks and Mitigations • Enhanced Organisational Processes and Structure • Budget and Summary • Concluding Remarks

3. The Board • Current Board is the third since the establishment of the institution. • Term of Office for the Board is five years. • 10 Members appointed: Only Chairperson Full Time. • One has since resigned: • Mr Landiwe Mahlangu - Chairperson: Municipal Demarcation Board • Ms Nondumiso Gwayi - Deputy Chairperson: Municipal Demarcation Board • Prof. NicoSteytler – based in the Western Cape Province • Khosi Ramovha – based in the Limpopo Province • Mr Lebina Tsotetsi – based in the Free State Province • Ms Grace Castle – based in the Mpumalanga Province • Mr Ashraf Adam – based in the Western Cape Province • Ms Wendy Ovens – based in the Gauteng Province • Ms Lynelle John – based in the Gauteng Province

4. RECAP FROM PREVIOUS BRIEFINGS • Portfolio Committee Strategic Planning: 30 November 2011 • Provided an update of the boundary Redetermination Process • Reported the outcome of Municipal Visits as per Circular 1/2011 • Some 60 Additional requests of which 18 were new cases • Municipal Responses on Technical Redetermination • Trends in the motivation for Boundary Changes • Annual Report presentation: 18 OCTOBER 2012 • Reported on 2010/11 Output and Developments • Financial Results for 2010/11 • Other Matters including Capacity Assessment ;research and studies of the Board

5. Progress and Status • Aug to Dec 2011 – visited all affected municipalities at metro district level, and other stakeholders to consult on 558 proposed technical changes, received new submissions; • Extended deadlines for submission to 20 January 2012 • By closing date some 200 additional requests for boundary changes received which vary in complexity • Continued to receive representations from individual stakeholders requests for dedicated meetings • Visited and addressed all Provincial Houses of Traditional Leaders and one local house • Met with the Minister of Cooperative Governance and Traditional Affairs

6. Progress and Status • Currently new requests are being analysed, mapped, and QA – to be completed by April 2012 • A Database of redetermination is being developed • May/June 2012 we will commence with second round of visits to municipalities to consult on new requests. • MDB has commissioned a legal opinion to deal with legally contentious and complex submissions • Significant Progress in Revised Capacity Assessment Model • MDB is applying some recommendations of the studies it recommended

7. MANDATE OF MDB • Vision, Mission and Values • VISION • The Board’s vision is the full realization of Constitutional and local democracy in South Africa characterized by functional and viable municipalities, spatially configured so that its boundaries and wards covers the whole territory of the Republic, including productive and inclusive metropolitan municipalities, sufficiently and optimally capacitated district and local municipalities which are supported by sound local government system • MISSION • To perform its functions and to exercise its powers in such a manner so as to empower municipalities to fulfil their constitutional obligations, primarily the provision of democratic and accountable local government, and  effective, efficient and  sustainable service delivery within sound boundaries. • VALUES • Accountability • Dedication • Effectiveness • Impartiality • Integrity • Professionalism

8. PURPOSE OF SUBMISSION • The Board presents to this Committee, the Strategic Plan for the MTEF period 2012-15, with a specific focus on the financial year 2012/13. • The Strategic Plan will be tabled in Parliament on the 07th March 2012 • The Plan and our priorities are informed by the legislative mandate and the medium to long-term planning process.

9. Mandate: Legislative Framework Municipal Demarcation Act, 1998 – Section 3 & 4 • The Board is a juristic person, is independent and must be impartial and must perform its functions without fear, favour or prejudice • The Board must determine municipal boundaries in accordance with this Act and other appropriate legislation • It must render an advisory service in respect of matters provided for in this act and other appropriate legislation.

10. Mandate (continued) Municipal Structures Act, 1998 • The Board must delimit wards in compliance with Schedule 1 to the Act. • Section 85 – The Board must consider the capacity of district and local municipalities to perform their function and to exercise their powers and provide advice to MEC’s responsible for Local Government. • Section 6 empowers the Board to declare District management areas and to withdraw such declarations.

11. Mandate of MDB: Criteria • Municipal Demarcation Act: outline the general criteria for demarcation objectives and factors to be taken into account. • Municipal structures Act: outline the criteria and requirements for metro’s. • Municipal structure Acts: outline the criteria for ward delimitation.

12. Work programme in respect of municipal and ward boundaries • MDB follows two broad cycles between local elections. • Immediate after an elections municipal boundaries are reviewed. This first cycle takes around two years. • After the review of municipal boundaries wards are delimited for the next local elections. This second cycle takes around 18 months. • Elections were held on 18 May 2011, and the review of municipal boundaries commenced in June 2011. • The determination or re-determination of municipal boundaries, is subject to legislation. • Section 155 of the Constitution requires that an independent authority must determine and re-determine municipal boundaries. • The Demarcation Act, provides the procedures and criteria, and the Structures Act, prescribes certain additional matters such as the criteria for categorising metropolitan municipalities.

13. Focus and outcomes of the past review on municipal boundaries • For the 2000 local elections the main focus was on the rationalisation of the total number of municipalities; • For the 2006 local elections the focus was on dealing with disestablishment of cross boundary municipalities • For the 2011 local elections the local government system was cleaned up by removing district management areas, and demarcating 2 additional metros • A the current process will refine municipal boundaries for the 2016 local elections. This may include major changes in some provinces.

14. Broad programme for current Boundary Review process

15. Broad provisional programme (cont)

16. Types of re-determination • Type A - Technical and minor boundary re-determinations: This re-determination entails a small scale boundary adjustment and/or alignment with a minor impact on the geographic area, and with a negligible or no impact on the number of voters, and on the capacity of the affected municipalities. The outcome of this redetermination is the correction and/or alignment of a municipal boundary with physical or natural features such as roads, rivers, and mountains; or cadastral boundaries (parent farm boundaries) or a combination of the two. Alignment to cadastre may be necessary where, for purposes of property valuations and rates, a property has to be under the jurisdiction of one municipality rather than being split between two or more municipal areas. • Type B – Consolidation and Annexations: This is a medium scale boundary re-determination that may impact on a sizable geographic area, and number of voters in one or all the municipalities affected. This type of determination may impact on ward arrangements but will not, or will not materially, impact on the capacities of the affected municipalities to deliver services. The outcome of this type of boundary adjustment is the correction of boundary anomalies that affect service delivery, and to promote integrated communities and economies.

17. Types of re-determination • Type C– Amalgamation and Categorisation: This type of re-determination entails a major and large scale municipal boundary re-determination which will have a significant impact on the geographic areas, the number of voters, and the capacities of the affected municipalities. The outcome of this type of re-determination includes the merging of adjacent municipalities; the splitting of municipal areas to create municipal areas which will result in that the responsible MEC will need to disestablish an existing municipality or municipalities, and establish a new municipality or municipalities. Also included in this type is the categorisation of metropolitan municipalities with or without boundary changes. This type of request requires extensive motivation and a significant amount of supporting evidence. Where a request is submitted for the categorisation of a municipality into a metropolitan municipality, such a request must satisfy the criteria outlined in Section 2 of the Local Government: Municipal Structures Act, 1998, in addition to the criteria set out in section 24 and 25 of the Local Government: Municipal Demarcation Act, 1998. Attention is also drawn to the fact that the MDB may determine that an area must have a category A (metropolitan) municipality, only after consultation with the National Minister responsible for local government, the MEC for local government in the provinces concerned, and SALGA.

18. Forms as per Circular 2/2011 • Form C1 - This form needed to be completed where stakeholders rejected/disagreed with the proposed boundary change(s) set out in Circular 1/2012. • Form C2 - This form needed to be completed where stakeholders agreed to/supported the proposed boundary change(s) set out in Circular 1/2012. • Form D - This form needed to be completed when a request for the re-determination of a municipal boundary was submitted to the MDB, and also contained an elaborate framework and guidelines of information required by the MDB.

19. Capacity Assessment 2011: Process Primary Data Secondary Data Online Database Qualitative Assessments Reports

20. 2011 Primary data collection approach • Web-based tool • Self-administered, user-friendly and simpler • Fewer questions than before • MM to sign off as Chief Accounting Officer • Support to municipalities through • Computer Assisted Telephone Interviews (CATI) - TNS • PDG contact info and TNS email address set up • Provinces – ‘provincial champions’ support to municipalities • Process of data verification • Municipal report sent to each municipality • One-month verification period • Final sign-off on data

21. Qualitative assessment • This is a deeper qualitative investigation into powers and functions in all municipalities within a five year period • This year will pilot this methodology • Nine districts (roughly 20% of all municipalities) will be selected • Investigation process will culminate in an analytical report for each district family of municipalities focusing on functions identified, mainly • Roads • Solid Waste • Fire Services

22. National Completion Status as at 22 February 2012

23. STRATEGIC FOCUS 2012 TO 2015 • Ongoing review of municipal boundaries • Ongoing assessment of municipal capacity • Re-organisation of the institutional administrative structures • Enhancement of stakeholder relations and communication • Enhancement of operations through national and international studies • Maintenance and improvement of governance structures • Ongoing compliance with relevant legislative and regulatory requirements • Source extra funding from National Treasury

24. KEY RESULT AREAS STRATEGIC OBJECTIVES AND OUTPUTS

25. SUMMARY OF 2012/13 PRIORITIES

26. CRITICAL ASSUMPTIONS • Sufficient legislative, regulatory and govt policy positions exist to support efforts of the Board. • The funding increases beyond current funding. • Stakeholders are willing and able to participate in the Board’s activities and engagement. • Human resources exists to support the Board’s strategic mandate.

27. RISKS AND ACTIONS TO MITIGATE RISKS Two main risks • Inadequate human resources leading to non-achievement of organisational objectives • Lack of stakeholder management/public relations leading to low profile of MDB • Mandate of the Board not being understood by stakeholders Actions to mitigate risks • Approved organisational structure in place • Appointment of stakeholder management specialist

28. ENHANCED ORGANISATIONAL CAPACITY FOR THE PERIOD AHEAD

29. PRESENTATION LED BY:Ms Matankiso Mahlangu(Acting CFO of the Board)

30. MDB SUMMARY BUDGET

31. MDB SUMMARY BUDGET

32. SAVINGS AND COST CUTTING • Unfunded position would not be filled • Largely use as far as possible means of communication, dissemination e.g. electronic business cards, dedicated websites etc • Limited use of consultants • Investigate cost effective ways to communicate Board decisions and redeterminations • Reduction of meeting held outside the office • Maintains current low usage of telephone

33. EXPENDITURE ESTIMATES PER PROGRAMME

34. CLOSING REMARKS BY CHAIRPERSON Issues the Board would like to place on the agenda of Portfolio Committee. • Reviewing and updating legislation on demarcation • Provincial Boundary matters. • Timeframes on the determination of formulae for no of councilors for the purpose of ward delimitations. • Eligibility criteria for Board Members. • Capacitating of Municipal Demarcation Board.

35. Questions and Comments