revised strategic plan 2017-2022 annual performance …
TRANSCRIPT
www.salga.org.za
REVISED
STRATEGIC PLAN
2017-2022
ANNUAL
PERFORMANCE
PLAN 2020-2021
Portfolio Committee on COGTA
12 May 2020
www.salga.org.za
PRESENTATION OUTLINE
• Part 1 - Background: The mandate, vision, mission, values and evolution of SALGA.
• Part 2 – SALGA Strategic Plan: Overview of the SALGA planning, budgeting, reporting Cycle and 5 YearStrategy.
• Part 3 – Changes that impact on SALGA’s Strategy: Other factors that influence SALGA’s strategy andperformance plans.
• Part 4 – Baseline to 2020/21 APP: Highlights of outputs achieved through the implementation of the first 3 years of the SALGA 5YR Plan.
• Part 5 - SALGA’s Revised Strategy 2017-2022 and the 2020-2021 Annual Performance Plan: Overview of the organisational performance plan in line with the SALGA Conference resolution and the 2017 – 2022 strategic plan.
• Part 6 – Financing the Plan: An overview of the budget allocation for the 2020/2021 APP
• Part 7 – Possible Impact of COVID-19 on the 2020/21 APP: An overview of the potential impact of COVID-19 on the SALGA APP
2
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PART 1
BACKGROUND
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BACKGROUND: SALGA’S MANDATE
4
7
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VISION, MISSION & VALUES 6
VALUES
MISSIONVISION
To be an
Association of
municipalities that is
at the cutting-edge
of quality and
sustainable services
To be consultative, informed,
mandated, credible and
accountable to our
membership and to provide
value for money
Responsive: Being quick and flexible in
responding to member needs
Innovative: Exploring new ways of
doing things and providing members
with fresh and unconventional services
Dynamic: Being flexible
and adapting to change to
service members effectively
and efficiently
Excellence: Serving
members with pride and
excellence.
www.salga.org.za• 6
The SALGA ORGANISATIONAL EVOLUTION
6
2017 - 2022
2012 - 2017
2007 - 2012
2000 - 2007
1996 - 2000
Relevance & Meaningful ImpactHigh performance & good governance
translate into meaningful impact
Well Governed High performing organisation, consistently receiving
clean audits
Consolidation
Consolidation as unitary structure that plans, operates an
reports as one.
Coordination of Democratic Local GovernmentCoordinating the voice of a fragmented local government
SALGA Established & LG Law and Policy Development
Start of journey with 9 different provincial structures, and participation
in LG policy and regulation
SALGA’s focus and mission has and remains to be about building municipalities that should be:
Caring I Accountable I Responsive I Innovative I Participatory I Capable I Resilient I Viable I
Development Oriented I Service Delivery Oriented
8
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PART 2
SALGA STRATEGIC PLAN
8
Planning, budgeting and
reporting Cycle
Policy Development /
Environmental Analysis
Strategic Planning/
Annual Performance Plan
SALGA
Planning,
budgeting and
reporting
Implementation and
in-year reporting
End-year reportingPerformance planning
and budgeting
Identify desired impacts
Specify performance indicators
Set targets and allocate resources
Monitor and take corrective action
Assess and adjust
10
www.salga.org.za9
IMPACTS
OUTCOMES
OUTPUTS
INPUTS
ACTIVITIES
The developmental results of achieving
specific outcomes
The medium-term results for specific
beneficiaries that are the consequence
of achieving specific outputs
The final products, or goods and
services produced for delivery
The processes or actions that use a
range of inputs to produce the desired
outputs and ultimately outcomes
The resources that contribute to
the production and delivery of
outputs
What we use to do the work?
What we do?
What we produce or deliver?
What we wish to achieve?
What we aim to change?
Plan, budget,
implement and
monitor
Manage towards
achieving these
results
IMPACTS
OUTCOMES
OUTPUTS
INPUTS
ACTIVITIES
The developmental results of achieving
specific outcomes
The medium-term results for specific
beneficiaries that are the consequence
of achieving specific outputs
The final products, or goods and
services produced for delivery
The processes or actions that use a
range of inputs to produce the desired
outputs and ultimately outcomes
The resources that contribute to
the production and delivery of
outputs
What we use to do the work?
What we do?
What we produce or deliver?
What we wish to achieve?
What we aim to change?
Plan, budget,
implement and
monitor
Manage towards
achieving these
results
Local Government Sector Goals –
long term impact level results
SALGA results that contribute to
sector goals - strategic objectives
and priority programmes
Plan budget, implement and
monitor (delivery of
mandate)
LOGIC FRAMEWORK11
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SALGA’S ROLE IN INSPIRING
CONTINUITY AND CHANGE
• Focus on SALGA’s role as PROTECTOR to enforce
rights of LG robustly
12
• Constructively DISRUPT (in positive sense) where
the existing overall system (legislative, fiscal, policy,
institutional) makes it impossible for LG to deliver on
its mandate
• Emerged out of the 2016 national conference with 102 resolutions
DISRUPTOR
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Goal 01
Sustainable, Inclusive
Economic Growth
underpinned by
Spatial
Transformation
Goal 02
Good Governance &
Resilient Municipal
Institutions
Goal 03
Financial
Sustainability of
Local Government
and Fiscal Equity
GOALS13
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12
GOAL 2Good Governance &
Resilient Municipal
Institutions
GOAL 1Sustainable, Inclusive
Economic Growth and
Spatial Transformation
GOAL 3Financial Sustainability of LG
and Fiscal Equity
To support Regional
Economic Strategies
and effective Land Use
Management
approaches for
economies of scale and
social cohesion
To promote high
quality and reliable
Service Provision
and Infrastructure
Investment
To modernise
governance
systems and
processes
To strengthen
oversight and
accountability
To implement a
sustainable
Urban
Development
Programme
To promote
sound and
productive
labour relation
To
professionalise
Local
Government
To strengthen financial
management systems and
controls
To strengthen LG’s
role in Community
Development and
Social Cohesion
To support
innovative
revenue
enhancements
strategies for
local government
To develop and
support the
implementation of
financial strategies for
long term
sustainability and
viability of local
government
SALGA STRATEGY (2017 – 2022) 14
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PART 3
CHANGES THAT IMPACT ON SALGA’S
STRATEGY
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MEDIUM TERM STRATEGIC FRAMEWORK (MTSF)
MTSF is a high-level strategic
document to guide the 5 year
implementation and monitoring of the
NDP 2030
In line with electoral mandate identifies
the Priorities to be undertaken during
2019-2024 to put the country on a
positive trajectory towards the
achievement of the 2030 vision
It sets targets for implementation of the
priorities and interventions for the 5
year period, and states the Outcomes
and Indicators to be monitored
16
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MTSF Priorities for 2019-2024
The Seven Priorities derived from the Electoral Mandate + SONA:
Priority 1: Economic Transformation and Job Creation
Priority 2: Education, Skills and Health
Priority 3: Consolidating the Social Wage through Reliable and Quality
Basic Services
Priority 4: Spatial Integration, Human Settlements and Local Government
Priority 5: Social Cohesion and Safe Communities
Priority 6: A Capable, Ethical and Developmental State
Priority 7: A better Africa and World
17
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2019 – 2024 MTSF LOGIC MODEL
18
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PART 4
BASELINE TO THE 2020-2021
ANNUAL PERFORMANCE PLAN
www.salga.org.za
75
80
85
90
95
100
2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019
84
9698
100 100
93
98
84
9698
100 100
93
98
Performance over the last six years
SALGA's Quality Assured Annual Performance Percentage (%)
AGSA Audited Annual Performance Percentage (%)
25
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STATUS OF STRATEGY 2016 - 22 IMPLEMENTATION
2017/18 2018/19
Outcome 1
Sustainable, inclusive economic growth and
spatial transformation.1
2
3
4
Outcome 2
Good governance & resilient municipal
institutions
Outcome 3
Financial sustainability of LG and fiscal equity
Outcome 4
Effective and efficient administration
2019/20 2020/21 2021/22
?
?
?
?
15/16 30/31
14/1421/23
3/3
7/7
5/5
17/17
OVERALL PERFORMANCE 70 ?54/5558/61
34
27
4
5
3/3
2/2
37/39
10/11
22/23
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2017/18
HIGHLIGHTS OF PERFORMANCE
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GOAL 1: Sustainable, Inclusive Economic Growth Underpinned by
Spatial Transformation
• SALGA launched the Small Town Regeneration Programme which provided support in the Karoo
region and the Bojanala municipality. A consultative and consensus building workshop on the STR-
IUDF alignment was held with COGTA to build an understanding on where the STR and regional
space economies approach fits within the broader IUDF.
SALGA concluded a research on Regional Economies and Categorization thereof. A consultation
process in a form of dialogues with stakeholders was convened aimed at drawing experience from
a wide range of experts in the field.
• After years of successful implementation of Water Services benchmarking, SALGA in partnership
with the Water Research Commission (WRC) has initiated the expansion of the benchmarking to
include waste management and electricity/energy services.
www.salga.org.za
GOAL 1: Sustainable, Inclusive Economic Growth Underpinned by
Spatial Transformation
• SALGA developed a position paper on the Legislative Framework for Environmental
Management, which will assist LG to clarify the responsibilities with regards to environment
function.
• A policy position paper on Funding requirements for Environmental Performance was also
developed which aim to influence the fiscal regime to make provision for funding instruments for
environmental performance areas.
• SALGA has raised all systemic and structural challenges in the Electricity Reticulation Industry
through IGR platforms which led to a formation of the Inter-ministerial Task Team(IMTT).
• SALGA hosted the Energy Summit to have a wider conversation around the policies impeding the
operations of municipalities in the energy space.
• SALGA developed comments on the revised Accreditation and Assignment Framework which is
developed by the Department of Human Settlements (DHS). The revised framework will ensure
that processes of accreditation and assignment will contribute to better outcomes.
www.salga.org.za
GOAL 2: Good Governance & Resilient Municipal Institutions
• SALGA provided direct support to municipalities on governance and intergovernmental relations.
• Conducted MPACs training on Roles and Responsibilities for 66 municipalities.
• Through the SALGA Centre for Leadership and Governance (SCLG) 4743 councilors and
senior municipal officials benefited in the training programmes as follows:
o 164 participants in the Senior Managers Induction Programme (SMIP),
o 131 participants in the Leadership in Municipal Governance (LMG) Programme,
o 480 participants in the Municipal Leaders Media and Stakeholder Engagement
Programme (MSEP),
o 2933 participants incl Traditional Leaders in the Portfolio Based Councilor Induction
Programme
o 279 participants in the Councilor Induction Programme (CIP)
o 16 participants in the Accredited Performance Management Support Programme.
o “Train the Trainer” session for MPACs on Roles and Responsibilities of Councilors, Political
Structures and Officials.
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GOAL 2: Good Governance & Resilient Municipal Institutions
• Developed SALGA Collective Bargaining Strategy for 2018/19;
• Concluded the process of signing the collective agreement for
implementation by municipalities;
• Representations provided to member municipalities across provinces on labour
related matters as follows:
o 107 disciplinary hearings,
o 82 conciliations and
o 183 arbitrations.
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GOAL 3: Financial Sustainability of Local Government & Greater
Fiscal Equity
• Municipal debt was profiled and proposals on how to deal with the historical debt owed to
municipalities was lobbied for in Parliament to the Select Committee and Presidential
Coordinating Committee (PCC).
• Escalated the matter of Eskom debt to PCC level and this has resulted in the following progress:
• Eskom concessions on reduced interest rates; tariffs and payment period of bulk
accounts from 15 to 30 days – collectively amounting to an approximately R1.7billion per
annum saving for municipalities;;
• An Inter-Ministerial Task Team including SALGA appointed find urgent solutions; and
• A high level Technical Advisory Panel appointed in May 2018 to look at options for the state
in resolving this impasse.
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GOAL 3: Financial Sustainability of Local Government & Greater
Fiscal Equity
• SALGA lobbied for amendment of MFMA and Systems act:
Lobby for appropriate licences for CFOs and MMs from an independent organisation;
Implement a de/merit system based on audit outcomes; and
Final sanction must result in the professional individual being debarred from working in Local
Government.
• Support was provided to 43 municipalities on Municipal Audit Support Programme, of the 43
municipalities supported 18 were in the red zone. 7 municipalities supported progressed in terms
of their audit outcomes.
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2018/19
HIGHLIGHTS OF PERFORMANCE
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Outcome 1: Sustainable, inclusive economic growth and spatial
transformation
• The SALGA Strategy and Implementation model for 5th Utility was developed together with the
Smart Cities framework.
• Developed inputs and represented the local government position on the constitutional
authority for electricity reticulation in the PCC
• Developed inputs on the IRP & submitted to the Department of Energy.
• Successfully lobbied the Minister of Water and Sanitation to withdraw the proposed Water and
Sanitation Bill. Subsequently, SALGA developed a Local Government Position on Water
legislation review and water management institutions.
www.salga.org.za
Outcome 1: Sustainable, inclusive economic growth and spatial
transformation
• Developed a revised Environmental Costing and Finance Policy Position paper.
• SALGA convened Climate Change Compact Conference for Mayors and the Green Energy
Symposium to present the Environmental Costing and Finance Policy Position paper.
• 13 municipalities in Chris Hani and O R Tambo District Municipalities were assisted with the
development of By-Laws.
• Through the rural densification framework, piloted with the Bushbuckridge Local Municipality.
Over and above the pilot, the rural densification dialogue was also held in the Eastern Cape and
Limpopo
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Outcome 2: Good governance & resilient municipal institutions
ProvinceDisciplinary
HearingsConciliations Arbitrations
Eastern Cape 5 - -
Free State 4 - 4
Gauteng - - 3
KZN - 115 97
Limpopo 6 3 7
Mpumalanga 20 - 17
Northern Cape 18 7 18
North West 2 4 7
Western Cape 24 8 96
Total 79 137 249
Grand total 465
• Through the SALGA Centre for Leadership
and Governance (SCLG) 3979 councillors
and senior municipal officials benefited in the
training programmes
• 38 municipalities received support on
Performance Management Systems
• 454 cases were represented on labour
related matters
• Disciplinary hearings decreased from 107 in
2017/18 to 79 in 2018/19; Conciliations
increased from 82 in 2017/18 to 126 in
2018/19 and
• Arbitrations decreased from 183 in 2017/18
to 249 in 2018/19 financial year.
www.salga.org.za
Outcome 3: Financial sustainability of Local Government and fiscal equity
• SALGA conducted research for the review of fiscal reforms. The research's
focus was on the following:
o Local Government Equitable Share (LGES) re-modelling to reflect cost of
services study;
o The impact of legislation/cost of reforms on LG; and
o The policy and regulatory framework.
• The final report regarding the quantum of the LGES, its' remodelling to determine
the adequacy thereof and potential recommendations to influence the broader
fiscal architecture was developed.
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Outcome 3: Financial sustainability of Local Government and fiscal equity
• Participated at the Technical Budget Forum, Winter Budget Forum and Spring Budget,
to lobby for the review of the fiscal architecture/regime towards a more equitable
allocation for municipalities.
• Participated in the National Inter Governmental Task Team (NIGTT) for debts
owed to municipalities by Organs of State.
• Collaborated with SARS on systems data-sharing project.
• SALGA also embarked on a research project which looked at the revenue losses
related to Eskom reticulation in municipal distribution areas which should
impact the LGES, the establishment of a district collection agency and the repeal of
the historical household debt.
• Recommendations on the changes to the Municipal Systems Act, Section 10 were
also developed and lobbied at the Budget Forum.
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2019/20
HIGHLIGHTS OF PERFORMANCE
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OUTCOMES 2: Good Governance & Resilient Municipal Institutions
• Actively participated in the processing of the Systems Act Amendment Bill and
the Structures Act Amendment Bill;
• Lobbied for local government concerns to be addressed in the review of the
Municipal Cost Containment Regulations;
• Provided advisory support to municipalities pertaining to the implications of the
Constitutional Court Order Declaring the Municipal Systems Amendment
Act, 2011 Invalid;
• Hosted the single biggest gathering of local government leaders from across the
globe: the UCLG World Congress.
www.salga.org.za
Outcomes 2
To professionalise Local Government – 2019/2020
56 50 50 56
337
541
0
200
400
600
MunicipalHealth ServiceSummit 2019
Health RiskWaste
ManagementTool
Mhs And EhForums
PesticidesTraining
2nd Annual LGTalent
ManagementSeminar
3rd Annual LGPMS Seminar
Health Professions Council of South Africa South African Board of PeoplePractices (SABPP)
TOTAL NUMBER OF COUNCILLORS & OFFICIALS WHO ATTENDED CONTINOUS DEVELOPMENT PROGRAMMES
Councillors, 3842
Officials, 4625
Councillors
Officials
0 1000 2000 3000 4000 5000
CAPACITY BUILDING PROGRAMMES BENEFICIARIES 2019/2020
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PART 5
SALGA’S REVISED STRATEGY 2017-2022
AND THE 2020-2021
ANNUAL PERFORMANCE PLAN
www.salga.org.za
Key interlinking challenges facing
municipalities and the local government sector
3737
Capabilities, Governance &
LeadershipWeakening municipal governance and
leadership characterised by poor oversight,
limited consequence management,
instability at senior management levels,
and a lack of skills undermine service
delivery and transformation at the local
sphere
Spatial Transformation &
InclusionSpatial transformation and inclusive
communities undermined by depressed
economic conditions, increasing impact of
climate change, regressing social cohesion,
poor coordination in planning, access to
land, bulk services, limited decentralisation
in housing delivery, transport challenges
and safety and security
Fiscal Policy & Financial
Management
Increase of municipalities in financial distress
due to many factors like: increase in the cost
of services (tariffs), decrease in revenue
collection, supply chain management
inefficiencies, and irregular, fruitless and
wasteful expenditure , low revenue bases,
high levels of unemployment & poverty.
Service Delivery &
InfrastructureIncrease in coverage of basic services but
under pressure from widening funding gap
for infrastructure, poor life cycle asset
management, maintenance and effective
project implementation, as well as lack of
technical capabilities.
20
www.salga.org.za
2020 DORB ALLOCATIONS vs
CONSTITUTIONAL FUNCTIONS
• Although LG is responsible for 46% of the constitutional functions, it
receives the lowest allocation of the national expenditure allocation at
9%
• The scenario requires national fiscus to contribute a significant proportion for
the provision of constitutional functions linked to the LG
VS
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POWERS & FUNCTIONS /UNFUNDED
MANDATES
Source: FFC Submission for the 2012/13 DoR – Technical Report
• LG bears significant costs for the delivery of unfunded and underfunded mandates;
• Municipalities perform functions on behalf of provinces;
• In some instances, the Service Level Agreements (SLAs) have not been signed by provincial
departments;
• Some allocations from the province are not transferred on time according to the agreed payment
schedule;
• Municipalities clearly perform functions on behalf of provinces without assigning full expenditure to the
functions.
• This has implications for the equitable sharing of nationally collected revenue and the delivery of services.
www.salga.org.za
POWERS & FUNCTIONS /UNFUNDED
MANDATES
• Municipalities are at the coal
face of service delivery and
often forced to deliver
unfunded mandates while
revenue instruments stay
with Provinces
• This further compromises the
financial viability of
municipalities
• Therefore, the revision of
existing Powers and
Functions is imperative
towards creating an ideal
municipal functionality
model after which funding
should follow
• Transfers for assigned
functions should not be
dependent on the Minister
or MEC’s discretion but
directly transferred to
municipalities
Provincial Grants per DoRB
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IMPACT: A RESPONSIVE, ACCOUNTABLE, EFFECTIVE,
EFFICIENT AND DEVELOPMENTAL LOCAL GOVERNMENT
OUTCOME 2
Good governance
& resilient
municipal institutions
OUTCOME 3
Financial
sustainability of
local government &
greater fiscal
equity
OUTCOME 1
Municipalities with
sustainable,
inclusive economic
growth
underpinned by
spatial
transformation
1 2 3
OUTCOME 4
Efficient and
effective
administration
4
21
www.salga.org.za
Number of outputs per outcome
Outcome 4
27
34 5
4
Outcome 1
Outc
om
e 2
Outc
om
e 3
Outcome one, two and
three are externally
focused and directly
provide support to
municipalities.
Outcome four is
internally focused and
strengthens the internal
capacity to support
municipalities
Total outcomes = 70
22
www.salga.org.za
OUTCOME
STATEMENT
To foster integrated and
sustainable urban
development and
management; regional
economic growth
inclusive of rural
development and bring
about social cohesion
OUTCOME 1
Municipalities with
sustainable, inclusive
economic growth
underpinned by
spatial transformation
1
34 OUTPUTS = 42 TARGETS
MTSF 2019-24 PRIORITIES
Priority 1: Economic Transformation and Job
Creation
Priority 2: Education, Skills and Health
Priority 3: Consolidating the Social Wage
through Reliable and Quality Basic Services
Priority 4: Spatial Integration, Human
Settlements and Local Government
Priority 5: Social Cohesion and Safe
Communities
Priority 6: A Capable, Ethical and
Developmental State
23
www.salga.org.za
OUTCOME STATEMENT
Investing in good governance and
modernization of government
approaches, strengthening
community interface mechanisms,
sound labor relations and
professionalization
27 OUTPUTS – 33 TARGETS
OUTCOME 2
Good
governance &
resilient
municipal institutions
2
MTSF 2019-24
PRIORITIES
Priority 6: A Capable, Ethical
and Developmental State
24
Preventative controls – the ultimate deterrent
19
MFMA
ASSURANCE PROVIDED BY MANAGEMENT / LEADERSHIP
Senior management
Municipal managers
Mayors
INTERNAL INDEPENDENT ASSURANCE AND OVERSIGHT
Internal audit units
Audit committees
Coordinating/ monitoring departments
EXTERNAL INDEPENDENT ASSURANCE AND OVERSIGHT
Municipal councils
Municipal public accounts committees
Portfolio committees on local government
Preventative controls cannot work effectively if allassurance providers are not playing their role
25%
5% 49%
7% 58%
50% 25%
35%
46%
27%
26%
44%
41%
47%
56%
32%
27%
4% 66% 30%
1%
2%
202018-19
31% 50% 18%
25% 53% 20%
www.salga.org.za
OUTCOME STATEMENT
Improvement of the financial health of
municipalities through:
o A revised Local Government fiscal
framework
o Effective revenue management and
enhancement
o Access to alternative/innovative
funding sources
o Sound financial management
4 OUTPUTS = 6 TARGETS
OUTCOME 3
Financial
sustainability of
local government
& greater fiscal
equity
3
MTSF 2019-24
PRIORITIES
Priority 6: A Capable,
Ethical and Developmental
State
25
MFMA
Financial health of municipalities
Lim
po
po
Mp
um
alan
ga
Kw
aZu
lu-N
atal
Fre
eS
tate
No
rth
Wes
t
Eas
tern
Cap
e
No
rth
ern
Cap
e
Wes
tern
Cap
e
Gau
ten
g
2018-19 2017-18 2018-19 2017-18
2018-19 2017-18
2018-19 2017-18
2018-19 2017-18
2018-19 2017-18
2018-19 2017-18
2018-19 2017-18
2018-19 2017-18
12% 23%
44%33%
44% 44%
8% 13%
79% 62%
13% 25%
28% 17%
17%50%
55%33%
15% 23%
68% 56%
17% 21%
13% 13%
87% 87%
6% 6%12% 25%
82%69%
11% 8%
26% 23%
63% 69%
72% 83%
21%14%
7% 3%
19% 24%
43%41%
38% 35%
13Good Of concern Intervention required 2018-19
14
Local government finance – the stark reality
Incomestatement
Balancesheet
Re
ve
nu
eEx
pe
nd
itu
reN
et
resu
lt
The financial statements of 229 completed audits shows:
• The total revenue (excluding equitable share and conditional grants) was R226 billion, but not all is
recoverable (see balance sheet)
• National government financed the municipalities through equitable share grants of R55 billion and
conditional grants of R43 billion
• Salary and wages (including councillors remuneration) was R91,30 billion – represents 40% of own revenue and 166% of equitable share
• Goods and services are procured, but the suppliers are not paid – the average creditors payment
period was 180 days
• R2,07 billion of expenditure was fruitless and wasteful
• R11,98 billion of expenditure was unauthorised
• The value of infrastructure assets that municipalities should maintain and safeguard was R317,68 billion but the expenditure on maintenance was only R8,5 billion
• 34% of municipalities ended the year in a deficit (expenditure was more than revenue)
• The total deficit in local government was R6,29 billion
• The total creditors at year - end was R53,52 billion. The cash available at year - end was R43,20 billion
• The creditors are greater than available cash at year end at 51% of municipalities
• The next year’s budget will pay for expenditure of the previous year(s) – at 26% municipalities it will be more
than half of their budgets
• An average of 59% of municipal debtors are not recoverable. At 55 municipalities more than 80% cannot
be recovered – debt collection at 99 municipalities was more than 90 days
72 (31%) municipalities are in a vulnerable financial position
The financial statements of 35 (15%) municipalities are not reliable enough for financial analysis to determine
their financial position
15
Eskom and Water Boards outstanding debts – 229 municipalities
Eskom outstanding debt – R billion
Water boards outstanding debt – R billion
Highest contributors – R billion
Highest contributors – R billion
Total amounts owed (as at June 2019)
31 - 120 days Over 120 days Total amount in arrears (i.e. 31 days and over)
R18,91 R2,29 R9,02 R11,31
Total amounts owed (as at June 2019)
31 - 120 days Over 120 days Total amount in arrears(i.e. 31 days and over)
R9,74 R0,86 R5,38 R6,24
Municipality Total amounts in arrears (as at June 2019)
31 - 120 days Over 120 days
Emalahleni (MP) R2,77 R0,33 R2,44
Ngwathe (FS) R1,04 R0,07 R0,97
Lekwa (MP) R0,80 R0,12 R0,68
Municipality Total amounts in arrears (as at June 2019)
31 - 120 days Over 120 days
Mopani (LP) R0,93 R0,09 R0,84
Vhembe (LP) R0,83 R0,02 R0,81
Msukaligwa (MP) R0,68 R0,14 R0,54
www.salga.org.za
OUTCOME
STATEMENT
To foster a sound financial
management of SALGA
processes and procedures
5 OUTPUTS = 6 TARGETS
OUTCOME 4
Efficient and
effective
administration
4
MTSF 2019-24
PRIORITIES
Priority 6: A Capable, Ethical
and Developmental State
26
www.salga.org.za
MANDATE
ADVOCATE, LOBBY & REPRESENT
www.salga.org.za
42
OUTPUTS OUTPUT INDICATOR Target
2020 - 2021
Policy guide on the role of LG in
response to HIVAIDS for
municipalities
NHC approval of a policy guide on
the role of LG response to HIV/AIDS
and roles and responsibilities
clarified
Policy guide on the role of LG in response to HIVAIDS
developed and submitted to National Health Council
(NHC) by 31 March 2021
Assessment of the SALGA
programmes and processes to
integrate mainstreaming of
vulnerable groups
Number of organisational policies
reviewed and updated
SALGA policies reviewed to integrate issues
vulnerable groups and mainstreaming strategy
developed by 31 March 2021
Policy guide on the role of Local
Government in the provision of
services on child care facilities
Clarifying the role of Local
Government in the provision of
services on child care facilities
Lobby the Department of Social Development to
create a platform to engage on local government
related matters by 31 March 2021
Policy guide on the role of local government in
provision of services on child care facilities
developed, consulted with municipalities and
submitted to Minmec by 31 March 2021
Policy guide on the role of Local
Government in Public Safety
Clarifying the role of Local
Government in Public Safety
Policy guide on public safety developed and
submitted to Minmec by 31 March 2021
28
www.salga.org.za
42OUTPUTS OUTPUT INDICATOR Target
2020 - 2021
A municipal strategic
framework on devolution of
functions toward achieving
integrated public transport and
the new urban agenda
Clarifying the role of Local
Government on the devolution of
transport function
Municipal strategic framework developed on
devolution of transport function in Municipalities by 31
March 2021
Policy guide on the role of
Local Government in Sport
Development developed
Clarifying the role of Local
Government in Sport Development
Policy guide on the role of local government in sport
development is developed and submitted to Minmec
by 31 March 2021
SALGA position paper on the
use land for Public good in line
with Municipal IDPs and SDFs.
Relevant department lobbied on the
use of land for Public good in line with
Municipal IDPs and SDFs
SALGA position paper on the use of land for Public
good in line with municipal IDPs and SDF developed
and submitted to MINMEC by 31 March 2021.
SALGA position on an enabling
legal, policy and fiscal
framework for housing
accreditation
Relevant stakeholders lobbied on the
enabling legal, policy and fiscal
framework for housing accreditation
SALGA position on an enabling legal, policy and fiscal
framework for housing accreditation developed by 31
March 2021
29
www.salga.org.za
42OUTPUTS OUTPUT INDICATOR Target
2020 - 2021
SALGA position on social
housing & backyard rental
Relevant stakeholders lobbied on
social housing & backyard rental
developed by 31 March 2021
SALGA position on social housing & backyard rental
developed by 31 March 2021
2018 SALGA Energy Summit
outcomes implemented
2018 SALGA Energy Summit
Outcomes Implemented
Energy Reform Proposals Developed by 31 March 2021
Inputs for Redesign of Energy Policy Framework
developed by 31 March 2021
Procedure for Small Scale Embedded Generation
developed by 31 March 2021
Strategy to operationalise
IMTT and Cabinet Decision
on Service Delivery
Agreement
IMTT and cabinet decisions
implemented
Framework of the Service Delivery Agreement
developed by 31 March 2021.
Legal Risks for local government implementation of the
Service Delivery Agreement compiled by 31 March 2021
Eskom Risk Matrix on Service Delivery Agreement
assessed and legal opinion developed by 31 march
2021
30
www.salga.org.za
42OUTPUTS OUTPUT INDICATOR Target
2020 - 2021
Framework developed to direct
support and monitor
municipalities to execute their
executive obligations
National and provincial government
must support and strengthen the
capacity of municipalities to manage
their own affairs, to exercise their
powers and to perform their functions
A study to evaluate the process, application,
successes and challenges imposed by section 139
interventions conducted by 31 March 2021
A study to evaluation the impact of the demarcation
processes to municipalities conducted by 31 March
2021
Develop, share and implement best practises based
on the 3 pilots launched on the implementation of the
District Development model by 31 March 2021
Structured SALGA
representation in IGR and
Parliamentary structures at both
provincial and national level
The voice of Local Government is
heard in the IGR and Parliamentary
structures
Participate and represent local government in the IGR
and Parliamentary foras by 31 March 2021
SALGA 5th Utility (Broadband
Infrastructure and Services)
Capacity Building and Training
Workshops conducted
Planned and Facilitated SALGA 5TH
Utility (Broadband Infrastructure and
Services) Capacity Building and
Training Workshops
3 Planned and Facilitated SALGA 5TH Utility
(Broadband Infrastructure and Services) Capacity
Building and Training Workshops by 31 March 2021
31
www.salga.org.za
42
OUTPUTS OUTPUT INDICATOR Target
2020 - 2021
SALGA position on the
division of revenue allocation
for Local Government
Lobby and advocated for the review
of equitable share allocation for
local government
SALGA position on the review of the equitable
share allocation for local government developed by
31 March 2021.
Position paper on sustainable financing of rural
development developed by 31 March 2021
National Revenue
Management Programme
National Revenue Management
Programme implemented at
selected municipalities
National Revenue Management Programme
developed and implemented by 31 March 2021
32
www.salga.org.za
MANDATE
EMPLOYER BODY
www.salga.org.za
42OUTPUTS OUTPUT INDICATOR Target
2020 – 2021
SALGA position documents f or
the multi-year salary and wage
collective agreement developed
Multi-Year Salary and Wage
Collective agreement negotiated
SALGA Collective Bargaining Strategy Approved
and Negotiations on Salaries and Wages facilitated
by 31 March 2021
Collective Agreement on pension
fund restructuring finalised and
wage curve collective agreement
negotiated.
The collective agreement on pension
fund restructuring is implemented in
municipalities
Facilitate the conclusion of negotiations on the
Pension Fund Restructuring and the Wage Curve by
31 March 2021.
Municipalities represented and
supported on labour related
matters
Number of municipalities
represented and supported on
labour related matters
Municipalities represented on labour related matters
(Advice, Conciliations, Mediations and Arbitrations
as and when required) and Finalize Training of
Trainers for Local Labour Forum (LLF) Training to
Municipal Employer delegates by 31 March 2021.
TASK Job Evaluation
implemented in municipalities
Job evaluation units and provincial
audit committee capacitated
Coordinate the Implementation of TASK Job
Evaluation in Municipalities by 31 March 2021.
Feasibility Study report for
SALGA proposal to provide
Compensation Benefits to
municipalities
Mandated compensation benefit
process from municipalities
Secure approval of the NEC to acquire the licence to
provide compensation benefit by 31 March 2021
34
www.salga.org.za
MANDATE
CAPACITY BUILDING
www.salga.org.za
42OUTPUTS OUTPUT INDICATOR Target
2020 – 2021
Assessment report on the
Performance of Disaster Risk
Management, Fire and Emergency
Services readiness in
municipalities
Improved municipal response
strategies on Disaster Risk
Management, Fire and Emergency
Services
Assessment study to reflect on municipal state of
performance of fire and emergency services to
identify areas of intervention conducted by 31 March
2021
Municipal workforce well
capacitated with performance
management capabilities
Number of municipal workforce
capacitated with performance
management capabilities
Roll out Municipal Performance Management
Training Programme by 31 March 2021
Municipal Councillors and
Officials well informed and
knowledgeable on performance
management
Number of municipal Councillors
and Officials informed and
knowledgeable on performance
management
Convene the 4th Annual Local Government
Performance Management Seminar by 31 March
2021
Institutionalise the integrated
Capacity building implementation
Plans
Number of capacity building
programmes implemented
A consolidated Integrated Capacity Building
Implementation Plan by 31 March 2021
Institutionalise the e-learning
blueprint
Number of blended capacity building
programmes rolled out
Implement the eLearning blueprint/strategy for local
government by 31 March 2021
36
www.salga.org.za
MANDATE
SUPPORT AND ADVICE
www.salga.org.za
42OUTPUTS OUTPUT INDICATOR Target
2020 – 2021
Assessment report on work done
by municipalities to mainstream
issues of vulnerable groups
Assessment tool to monitor the
mainstreaming inclusion of
vulnerable groups
Assessment study on the work done by
municipalities to mainstream issues of vulnerable
groups by 31 March 2021
Status quo report on Local
Government response to Poverty
alleviation
Status quo on LG response to
Poverty alleviation
An assessment of the LG response to poverty
alleviation developed together with the Plan of
Action by 31 March 2021
Coordinate and Implement the
SALGA Women's Commission
Programme of Actions
Gender mainstreaming and women
empowerment
Implementation of the SWC Resolutions and
Programme of Action by 31 March 2021
Differentiated support programme
for effective SPLUM in
municipalities (SPLUMA
compliance, implementation of
IDP reviews and localization of
SDFs)
Improved municipal planning and
land use management in
municipalities
Differentiated support provided to municipalities on
SPLUM by 31 March 2021
SALGA Comprehensive Rural
Development Programme
Number of municipalities supported
on implement Rural Development
Programme. (e.g. Agriculture, Land,
Infrastructure Delivery, Spatial
Planning)
Lobby intergovernmentally for Rural Development
programmes to be implement through and in
partnership with municipalities by 31 March 2021
38
www.salga.org.za
42OUTPUTS OUTPUT INDICATOR Target
2020 – 2021
Selected municipalities supported
to develop land acquisition and
disposal strategies and to
conduct land audit
Number of municipalities supported
to develop land acquisition and
disposal strategies and to conduct
land audit
Municipal land audits conducted in 2 Metros and 20
local municipalities by 31 March 2021.
Status Report on the
implementation of the
Environmental Management
Protocols
Devolution and Funding Framework
for devolving the environmental
function to municipalities adopted
Facilitated engagements with provincial department
and municipalities to implement the Environmental
Management Protocols by 31 March 2021
Sector support programme to
improve municipal compliance to
legislative framework for
environmental functional areas
(biodiversity, air quality and
coastal management)
Improved municipal compliance to
legislative framework for
environmental functional areas
Sector Support programme to improve municipal
compliance to legislative framework for
environmental functional areas (biodiversity, air
quality and coastal management) is developed and
implemented by 31 March 2021
A differentiated Climate Change
response programme
Improved municipal response
strategies on Climate Change
Differentiated Climate Change Response
programme developed and implemented for different
categories of municipalities by 31 March 2021
Municipalities supported to
improve waste management
services
Number of municipalities supported
to perform their authority function on
waste management
Identified municipalities supported to perform their
authority function (i.e. bylaws, Integrated Waste
Management Plan, etc.) by 31 March 2021
39
www.salga.org.za
42OUTPUTS OUTPUT INDICATOR Target
2020 – 2021
Municipalities supported on water
services
Municipalities have access to
innovative water and sanitation
technology solutions by March 2021
Identified municipalities exposed to new innovative
water and sanitation solutions and management by
31 March 2021
Regional economic development
and small town sustainability
programme implemented
Number of the STR programme
with regional economic approach in
selected regions/municipalities
STR programme implemented in two regions and
selected municipalities by 31 March 2021
Municipal employment promotion
capability supported
Number of municipalities engaged to
support the promotion of
employment initiatives by March
2021
Engage targeted municipalities to improve their
employment promotions actions, using existing
levers and tools by 31 March 2021
Roll out the Consequences &
Accountability Framework to
municipalities.
Improved municipal governance Convene workshops in all provinces to roll out the
Consequences & Accountability framework by 31
March 2021
Municipalities support on
governance related matters raised
in the AGSA municipal Audit
Outcome Report
Number of municipalities supported
on governance related matters
5 Municipalities per province supported on
governance related matters by 31 March 2021
40
www.salga.org.za
42OUTPUTS OUTPUT INDICATOR Target
2020 – 2021
Framework developed to direct support
and monitor municipalities to execute
their executive obligations
National and provincial government must
support and strengthen the capacity of
municipalities to manage their own
affairs, to exercise their powers and to
perform their functions
Lobby and advocate for the inclusion of local government
support processes and requirements in the development and
processing of the Municipal Intergovernmental Support,
Monitoring and Interventions Bill by 31 March 2021
Innovative solutions and programmes
provided to municipalities
Innovative solutions and programmes for
municipalities
Provide support to municipalities on innovation solutions and
programmes by 31 March 2021
SALGA ICT Capability Assessments
conducted based on the SALGA ICT
Capability (Governance and Service
Management) Maturity Assessment
Model
SALGA ICT Capability (Governance and
Service Management) Maturity Model
implemented
50 Municipalities assessed on the SALGA ICT Capability
Maturity Model by 31 March 2021
SALGA Smart Cities Development
Framework and Implementation Model
implemented in Municipalities
Piloted implementation of SALGA Smart
Cities Development Framework and
Implementation Model in Municipalities
Pilot implementation in one municipality on the SALGA's
Smart Cities Development Framework and Implementation
Model by 31 March 2021
Municipalities with functional and
effective performance management
systems
Number of municipalities with functional
and effective performance management
systems
Implement customised performance management support
interventions for selected municipalities by 31 March 2021
41
www.salga.org.za
42
OUTPUTS OUTPUT INDICATOR Target
2020 – 2021
Implementation of the
Professionalization Framework
Local government is
professionalised
Pillars of the professionalization framework
programitised and implemented by 31 March 2021
A programme for strengthened
oversight and accountable
leadership practices.
Number of support initiatives
developed and support provided to
municipalities through Municipal
Audit Support Programme
10 % Reduction in the number of significant audit
findings from the supported municipalities by 31
March 2021
Approaches towards innovative
financing instruments
Innovative Infrastructure financing
instruments and processes
identified.
Infrastructure Financing Instruments facilitated for
municipalities by 31 March 2021
Conduct an assessment to identify policy and
regulatory proposals to address the institutional
barriers to green innovative financing options by 31
March 2021
An infrastructure grants support
programme based on the MIIF
conference resolutions
Improved municipal infrastructure
grants spending for municipalities
Municipalities supported in improving their
infrastructure grant spending by 31 March 2021
42
www.salga.org.za
MANDATE
STRATEGIC PROFILING
www.salga.org.za
42
OUTPUTS OUTPUT INDICATOR Target
2020 – 2021
Spatial transformation barometer
for selected cities and towns
Spatial transformation is monitored
in municipalities
Spatial Transformation Barometer for selected cities
and town develop and published the by 31 March
2021.
Investment tools developed to
support municipal investment
growth including green
infrastructure
Municipal investment attraction tools
developed
Develop municipal investment attraction guidelines
by 31 March 2021
Local Government Data
Intelligence Solution developed.
Easy access to local governance
data is provided to Local
Government.
Upgrade Data Intelligence applications (Municipal
Barometer and SALGA Mobi) by 31 March 2021.
Municipal Socio-economic
Profiles Generated.
Information and insight for improved
municipal decision making
processes provided.
Conduct data analysis, generate and disseminate
information outputs by 31 March 2021
Local Government Risk Profile
Solution
Local Government Risk is mitigated
and managed.
Local Government Risk Profile Roadmap
Framework implemented by March 2021.
Innovative solutions and
programmes provided to
municipalities
Innovative solutions and
programmes for municipalities
Develop, package and publish one (1) SALGA
Innovation Publication by 31 March 2021
44
www.salga.org.za
42
OUTPUTS OUTPUT INDICATOR Target
2020 – 2021
SALGA Municipal Awards for
local government implemented
Well implemented and managed
SALGA Municipal Awards for local
government by March 2021
Implementation of the SALGA Municipal Awards by
31 March 2021
To provide and Effective and
Efficient Administration Support
Service for SALGA programme
delivery
Unqualified audit opinion for the
financial year ending 31 March 2021
100% compliance to PFMA requirements for public
entities by 31 March 2021
100% compliance to SALGA policies and
procedures contributing to an effective and efficient
administration by 31 March 2021
Outcome reports on
implementation of partnership
programmes with donor
communities
Partnership agreements
implemented in municipalities
90% - 100% implementation of partnership
agreements with donor communities by 31 March
2021
Awareness of the progress made
by municipalities in executing
their constitutional mandates
Structured Profiling of local
government
Local Government profiled by 31 March 2021
45
www.salga.org.za
MANDATE
KNOWLEDGE AND INFORMATION
SHARING
www.salga.org.za
42OUTPUTS OUTPUT INDICATOR Target
2020 – 2021
Assessment report on primary health
care services study
Evidence based policy decision on
institutional arrangement for Primary
Health Care Service delivery
Assessment study on Primary Health Care Services delivery
conducted by 31 March 2021
Assessment of cost implications of
providing municipal environmental
health services at a required standard
Evidence based policy decision on
resources allocation for the provision of
municipal environmental health services.
Assessment study on provision of municipal environmental
health services conducted by 31 March 2021.
Assessment report on the state of By-
Law enforcement in Municipalities
Effective mechanism of enforcing
municipal By-Laws
An assessment study on the state of By-Law enforcement in
Municipalities conducted by 31 March 2021
Assessment report on the existing
arrangement in municipalities for
protection of municipal infrastructure
and assets
Effective mechanism of ensuring effective
protection of municipal infrastructure and
assets.
An assessment on the existing arrangement in municipalities
for protection of municipal infrastructure and assets
developed by 31 March 2021
A comprehensive report on Municipal
infrastructure. (Transport, Roads, and
Storm water)
The state of municipal Transport, Roads
and Storm water Infrastructure packaged
Research conducted on the state of municipal transports,
roads, and storm water infrastructure by 31 March 2021
Research report on Local government
grant funding for land needs
Lobby for funding mechanisms to be
established for municipalities to respond
to land needs
Research conducted on Local Government grant funding for
municipal land needs by 31 March 2021.
47
www.salga.org.za
42OUTPUTS OUTPUT INDICATOR Target 2020 – 2021
Municipalities supported to improve
waste management services
Stakeholders engagements on waste
management function in municipalities
Relevant stakeholders engaged on
1) The need for municipalities (especially rural ones) to use
MIG to fund waste specialized equipment by 31 March 2021
2) The mechanisms for municipalities to receive a share of
producer levy through implementation of Extended Producer
Responsibility (EPR) by 31 March 2021
Municipalities supported on water
services
Dept. of Water and Sanitation lobbied on
the proposed legislative changes by
March 2021
Proposal identifying legislative gaps is developed and
submitted to Department of Water and Sanitation and related
inter-governmental structures submitted by 31 March 2021
Economic Master Planning Framework One municipality piloted on Economic
Master Planning Framework
Develop an Economic Master plan Framework and pilot in
one municipality by 31 March 2021
Dialogue conducted on public
participation and ICT Innovations
Awareness created in municipalities on
ICT innovations and public participation
Convene 1 National Dialogue on Public Participation & ICT
Innovations by 31 March 2021
Local government knowledge products
produced
Informed, knowledgeable and innovative
local government sector
Development, digitisation and dissemination 08 of knowledge
products by March 2021
SALGA Knowledge Hub managed and update with relevant
content by 31 March 2021
Research aligned to the SALGA
organisational strategy and priorities
conducted
Research Generating & Dissemination
platforms created
Produce relevant and high-quality research products in line
with SALGA's Research Strategy by 31 March 2021
Human Resource Management Strategy Improved work environment that enhances
high performance
Human Resource Management Strategy developed and
approved by 31 March 2021
48
www.salga.org.za
PART 6
FINANCING THE PLAN
www.salga.org.za
50
BUDGET PARAMETERS
www.salga.org.za
STATEMENT OF FINANCIAL
PERFORMANCE
51
www.salga.org.za
REVENUE DISTRIBUTION 2020/21
52
www.salga.org.za
STATEMENT OF FINANCIAL POSITION
55
www.salga.org.za
PART 7
IMPACT OF COVID-19
ON APP 2020/21
www.salga.org.za
COVID-19 DIRECTIVES TO MUNICIPALITIES
TO CONTINUE FOR 2020/21
Make resources and funding available to sustain implementation of following
Regulations or directions issued:-
• Provision of extended water and sanitation services;
• Communication, awareness, and hygiene education;
• Precautionary measures to mitigate employee health and safety risks;
• Provision of improved access and hygiene, disinfection control on all public transport
facilities;
• Community Halls and recreation centres to be used to provide essential services
such as for the processing and payment of SASSA social grants;
• Ongoing refurbishment of taxi ranks to curb the spread of COVID-19;
• Modernise governance systems and processes to enable virtual meetings and public
engagements.
www.salga.org.za
MIUNICIPAL RESPONSE
TO COVID-19
www.salga.org.za
Awareness & education
2
SOAP DRIVE
DOOR-TO-DOOR
COMMUNITY RADIO
www.salga.org.za
Extra water & sanitation
3
www.salga.org.za
Sustained Sanitising and Deep Cleaning
of Public Facilities
4
www.salga.org.za
Encouraging compliance
5
LIQUOROUTLETSCLOSED
ROADBLOCKS
STAYING HOME
VISIBLEPOLICING
www.salga.org.za
Institutional arrangements
8
SANITISER
FACE MASKS
SCREENING & TESTING
www.salga.org.za
FISCAL RESPONSE TO MUNICIPALITIES
EXAMPLE: HANTAM MUNICIPALITY (NORTHERN CAPE)
• Hantam municipality is a very small local municipality with 9 councillors and 140 municipal
workers;
• It is expected to implement the DMA Regulations / directives, for example the requirement that the
municipality to put in place Precautionary measures to mitigate employee health and safety
risks, meaning very basic personal protective equipment (masks, gloves and sanitisers) must be
provided.
• The cost of providing this is estimated at R1180 per employee per month.
• So for the 9 councillors and 140 municipal employees, it will cost the municipality R 175 820 per
month. - costs is to execute one out of the many new obligations placed on the municipality.
• As at 7 May 2020, R150m has been allocated by National Treasury to municipalities.
• Hantam Municipality has been allocated R21 000, with the R 175 820 per month cost for PPE for
councillors and municipal staff, where will the rest of the money come from?
www.salga.org.za
FISCAL RESPONSE TO MUNICIPALITIES:
DISASTER RELIEF FUND ALLOCATIONS
PROVINCE MUNICIPALITY FUNDING
REQUESTED
FUNDING
RECEIVED
VARIANCE
EASTERN CAPE Joe Gqabi District
(including Locals)
R 66, 969, 610 R 3, 785, 000 - R 63, 184, 610
GAUTENG Midvaal Municipality R 15, 000,000 R 718, 000 - R 14, 282, 000
KWAZULU-
NATAL
Umvoti Municipality R 7, 853, 650 R 757, 000 - R 7, 096, 650
LIMPOPO Makhado Municipality R 54, 000, 000 R 149, 000 - R 53, 851, 000
MPUMALANGA Steve Tshwete
Municipality
R 40, 270 000 R 447, 000 - R 39, 823, 000
NORTHERN
CAPE
Frances Baard District
(including Locals)
R 50, 636, 820 R 662, 000 - R 49, 974, 820
NORTH WEST Rustenburg Municipality R 61, 740, 502 R 1, 341, 000 - R 60, 399, 502
WESTERN CAPE Garden Route District R 47, 000, 000 R 268, 000 - R 46, 732, 000
www.salga.org.za
PROJECTED CHALLENGES ARISING FROM
COVID 19
• Job cuts and reduced household income will result in local increase in Poverty and Unemployment; • Increase in Indigent Registrations
LOCAL ECONOMIC DEVELOPMENT
• Projected under recoveries on services rendered (water, electricity & rates) will affect ability to service current and outstanding debt, including bulk (Eskom & Water Boards)
DEBT MANAGEMENT
• Projected under recoveries will affect cross-subsidisation of other non-revenue services;
• Prioritising COVID-19 response demands reprioritising to the detriment of broader service delivery
SERVICE DELIVERY
• Expanded Services related to COVID-19 creates local service delivery expectations to be sustained beyond COVID-19LEGACY EXPECTATIONS
• Technical and infrastructure readiness to convene virtual meetings and public consultation.GOVERNANCE
www.salga.org.za
ANTICIPATED MUNICIPAL SUPPORT REQUIRED
FROM SALGA – IMPACTING 2020/21 APP
• Develop and implement a local government response as a contribution to the national economic recovery plan
LOCAL ECONOMIC DEVELOPMENT
• Introduce debt management plans with a view to determine affordable payment terms;• Support to develop voluntary financial recovery plans;• Review the LGES formula to be more relevant & realistic.
DEBT MANAGEMENT
• Development Planning and Re-prioritisation support and adviceSERVICE DELIVERY
• Develop long term service delivery sustainability models;
• Through DDM lobby for short, medium and long term support in executing services from national and provincial government
LEGACY EXPECTATIONS
• Fast track the development of a Comprehensive IT Solutions Package for municipalitiesGOVERNANCE
www.salga.org.za
IMPACT OF 2018/19 MUNICIPAL AUDIT
OUTCOMES ON APP 2020/21
www.salga.org.za
DORB 2020 p. 99
COVID-19 IMPACT ON LG REVENUE
(INDIGENT MANAGEMENT)
The basic services component
This component helps municipalities provide free basic water, sanitation, electricity and refuse
removal services to households that fall below an affordability threshold. Following municipal
consultation, the formula's affordability measure (used to determine how many households need free
basic services) is based on the level of two state old age pensions.….Statistics South Africa has
calculated that 59 per cent of all households in South Africa fall below this income threshold…”
According to NT the basic services subsidy will fund 10.4 million households in 2020/21 based on
Community Survey 2016
Growth rate in household numbers from
1996 census to 2016 suggests that
number of households should be
approximately 19,7 million in 2021.
If 59% of HH are then assumed to be poor
as per STATS SA then LGES should be
based on 11,6 million Households
The impact of COVID 19 has not even
been considered.
www.salga.org.za
RECOMMENDATIONS
It is recommended that the Portfolio Committee of COGTA to:
1. NOTE the SALGA Annual Performance Plan for the financial year
2020/21 which is inclusive of
a) Key performance indicators
b) Financial plan
2. NOTE that SALGA will be amending the APP to be more responsive
to the realities introduced by the impact of COVID-19.
56
www.salga.org.za
Thank You