delegation ms mjj thupana chairperson: municipal demarcation board mr am adam

STRATEGIC PLAN AND BUDGET 2014 TO 2019MUNICIPAL DEMARCATION BOARD

BRIEFING TO THE PORTFOLIO COMMITTEE ON COOPERATIVE GOVERNANCE AND

TRADITIONAL AFFAIRS

DELEGATIONMs MJJ ThupanaChairperson: Municipal Demarcation Board

Mr AM AdamDeputy Chairperson: Municipal Demarcation Board

Mr DKN LigegeActing Chief Executive Officer

Mr A RamagadzaExecutive Manager: Operations and Research

Ms ML RatyaActing Chief Financial Officer

OUTLINE OF PRESENTATION

• MEMBERS OF THE BOARD

• INSTITUTIONAL ARRANGEMENTS

• LEGISLATIVE MANDATE OF THE BOARD

• VISION AND MISSION

• PERFORMANCE OUTCOMES OF 2013/14 FINANCIAL YEAR

• 2013 – 2018 STRATEGIC PLAN

• 2014 STRATEGIC PRIORITIES

• 2014 ANNUAL PERFORMANCE TARGETS

• MEDIUM TERM EXPENDITURE FRAMEWORK

• CHALLENGES

• CONCLUDING REMARKS

PURPOSE OF THE PRESENTATION

•To enable the Portfolio Committee to discharge is mandate of oversight on Budget Vote 3, specifically on the Municipal Demarcation Board;

•To present to the Portfolio Committee:

– Progress with implementation of the MDB Strategic Plan;

– Performance outcomes on predetermined objectives for the 2013/4 financial year;

– The Annual Performance Plan for the 2014/15 financial year;

– The budget allocation of the institution.

MEMBERS OF THE BOARDThe President of the Republic of SA appointed the new Board with effect from 20 February 2014.

•Members of the Board are as follows:

Ms Jane Thupana - ChairpersonMr Ashraf Adam - Deputy ChairpersonMr LD TsotetsiProf Isobel KonynMs Nompumelelo MpofuMr Simphiwe DzengwaMs Shivon WigginsMr Maruping WildebeesMs Mmatsie Mooki

•Board members serve for a term of five years.

•The Chairperson is the only full time member.

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Ms Jane Thupana Chairperson

Mr Ashraf AdamDeputy Chairperson

Mr LD Tsotetsi Prof Isobel Konyn Ms Nompumelelo Mpofu

Mr Simphiwe Dzengwa

Ms Shivon Wiggins

Mr Maruping Wildebees

Ms Mmatsie Mooki

INTRODUCING THE CURRENT MDB

INSTITUTIONAL ARRANGEMENTS

• THE BOARD

The Board is led by an Executive Chairperson, and discharges its duties through subcommittees of the Board which are: Executive Committee Policy and Research Committee Boundaries, Powers and Functions Committee Remuneration and Human Capital Committee Audit and Risk Committee

• ADMINISTRATION

The administration support the Board and is led by a Chief Executive Officer and Accounting Officer. The institution has three Divisions which are: Operations and Research Division Finance Division Corporate Services Division

LEGISLATIVE MANDATE

STRATEGIC CONTEXT• The overlapping mandate dictates that MDB’s sustainability is intrinsically

intertwined with that of other players in the Local Government sector e.g. Independent Electoral Commission (IEC), Financial and Fiscal Commission (FFC) and Department of Cooperative Governance and Traditional Affairs (DCOGTA). MDB will focus on creating collaborations and partnerships without compromising its independence.

• An investment in stakeholder consultation and public participation will deepen our democracy and enrich MDB’s decisions.

• Sustainability of the local government sector depend among others on a solid spatial planning framework which is possible if spatial configuration of municipal boundaries can stabilise.

• Build the research and knowledge management capacity for the MDB to be once more a repository of knowledge for municipalities and the public.

VISION AND MISSION

• VISION The Board’s vision is the full realisation 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 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.

Beyond boundaries

PERFORMANCE OUTCOMES FOR 2013/14

• The Board tabled the 2013/14 Annual Performance Plan to the Portfolio Committee on 19 March 2013

• 83% of the targets on the Annual Performance Plan were achieved

• The 2013/14 financial year was the last phase of finalising re-determinations of municipal outer boundaries.

• The Board completed the outer municipal boundary redeterminations during October 2013

• The MDB developed a classification system which differentiated between the different types of redetermination requests received. These included proposals for the redetermination of metropolitan municipal boundaries, the disestablishment and/or amalgamation of municipalities, the re-categorization of municipalities, and technical or minor changes to municipal boundaries

• The classification of re-determinations is presented next:


Type A – Technical and minor re-determinations

•This redetermination entails a small-scale boundary adjustment and/or alignment which will have:

• a minor impact on the geographic area,

• a negligible or no impact on the number of voters, and

• no impact on the capacity of the affected municipalities;

Type B – Consolidations and Annexations

•This is a medium-scale boundary redetermination that may impact on a sizeable geographic area and on the number of voters in one or all the municipalities affected. This type of determination may impact on ward arrangements but will not materially impact on the capacities of the affected municipalities to deliver services.


Type C – Amalgamation and Re-categorisations

•This type of re-determination entails a major and large-scale municipal boundary redetermination, which will have a significant impact on the geographic area, the number of voters and the capacity of the affected municipalities.

•The redetermination may include the merging of adjacent municipalities or the splitting of municipal areas to create new municipal areas.

•It requires the MEC responsible for local government to disestablish an existing municipality or municipalities, and establish a new municipality or municipalities.

•This type also includes the declaration of new metropolitan municipalities with or without boundary changes. Such a re-categorisation as a metropolitan municipality must satisfy Section 2 of the Municipal Structures Act and Sections 24 and 25 of the Municipal Demarcation Act.


• Total number of requests considered by the Board

ProvinceTotal Number of

requests TYPE A TYPE B TYPE C

Eastern Cape 225 135 83 7

Free State 86 54 26 6

Gauteng 85 61 9 15

KwaZulu-Natal 276 150 91 35

Limpopo 99 47 49 3

Mpumalanga 74 55 15 4

North West 63 54 7 2

Northern Cape 39 35 3 1

Western Cape 81 78 2 1

Total 1 028 669 285 74


• Of 1 028 boundary re-determinations, 204 were published in terms of section 26 of the MDA, indicating the Board’s intention to consider the requests.

• Formal investigations and public meetings were held pertaining to the above requests.

• Public meetings were viewed by the Board as an essential and valuable opportunity to advance the democratic principles of transparency and openness in the process of boundary demarcation.

• These meetings gave communities the opportunity to make their views known to Board on proposals that affected them and their environment, and further enabled the Board to provide additional clarity and information where required and to correct misperceptions about the demarcation process.

• 22 public meetings and 90 formal investigations were conducted.• Out of 204 cases published in terms of section 26, the Board re-determined 157

cases.• Of which 10 were major redeterminations (Type C) which materially affect

voter representation.


• The Board re-determined municipal boundaries for a total number of 157 proposals. The resulting Section 21 notices were published in the relevant provincial gazettes and a 39-day period was given for the lodging of objections.

PROVINCE NO. OF CASES NO. OF OBJECTIONS

EASTERN CAPE 26 16

FREE STATE 6 0

GAUTENG 3 9 792

MPUMALANGA 2 4

KWAZULU-NATAL 37 17

LIMPOPO 7 1

NORTH WEST 20 0

NORTHERN CAPE 21 2

WESTERN CAPE 35 1

Total 157 9 835


• Number of cases, confirmed, varied or withdrawn

PROVINCE CASED CONFIRMED CASES WITHDRAWN

CASES VARIED

EASTERN CAPE 23 3 0

FREE STATE 6 0 0

GAUTENG 3 0 0

MPUMALANGA 2 0 0

KWAZULU-NATAL 30 2 5

LIMPOPO 7 0 0

NORTH WEST 20 0 0

NORTHERN CAPE 21 0 0

WESTERN CAPE 35 0 0

Total 147 5 5


• The municipal boundary redeterminations have led to a change in the number of municipalities in KwaZulu-Natal and Gauteng.

• The number of district municipalities has reduced by one in Gauteng.• The number of metropolitan municipalities (category A) will increase to nine, with

a new Category A municipality established in Gauteng. • The number of local (category B) municipalities has, however, been reduced

from 226 to 215. • The greatest number of boundary changes occurs in KwaZulu-Natal, where the

total number of local municipalities has been decreased by seven as a result of amalgamations.

• These boundary redeterminations will take effect on the date of the next Local elections i.e. 2016.

ELECTION PERIODCATEGORY A

(METROPOLITAN)CATEGORY B

(LOCAL)CATEGORY C

(DISTRICT)TOTAL

TOTAL 2011 8 226 44 278

TOTAL 2016 9 215 43 267

2013-2018 STRATEGIC PLAN

Strategic Objective To determine and re-determine boundaries of local, district and metropolitan municipalities

Objective statement Plan and implement a process to finalise 100% of requests received, or initiated, in terms of Section 22 of the Demarcation Act, 1998, by 2013. The process will comprise of different phases including planning, consultation, compliance to legal provisions, and the finalisation of all changes to municipal boundaries during 2013.Action 100% of process to ensure that municipalities qualifying for metro status indeed become metros on the date on the next local government elections.Advise service delivery departments of changes to municipal boundariesDeclaration and withdrawal of district management areas

Strategic Objective Delimitation of wards for all local and metropolitan municipalities for the 2016 local elections.

Objective statement Plan and implement a process to delimit ward in 100% of local and metropolitan municipalities by mid 2015 in terms of Schedule 1 to the Local Government: Municipal Structures Act, 1998.The process will comprise of different phases including planning, consultation, compliance to legal provisions, and the finalisation of all ward for the 2015 local elections.


Strategic Objective Assessment of the capacity of metropolitan, district and local municipalities

Objective statement Ensures that consultants appointed by the Board delivers 100% of the outcomes specified in their contracts with the Board. Provide quality municipal capacity assessment reports and recommendations to MECs for local government regarding adjustments of powers and functions in compliance with Section 85 of the Local Government: Municipal Structures Act, 1998

Strategic Objective Ensuring Good Governance and sound financial management

Objective statement Manage resources to accomplish strategic goals, effective financial planning, ensure adherence to laws, regulations and contractual obligations, ensure effective efficient use of resourcesCompliance with legal frameworks.Improve efficiency and effectiveness of administrative processes and systems.


Strategic Objective Board supported by effective and efficient organisation, organisational processes, systems and practices

Objective statement Implement the outcomes of the Organisational Development Initiative (OD)Monitor individual performance contracts that supports strategic objectivesMaintain an internship programme to mitigate risks associated with staff turnoverMaintain acceptable employee satisfaction levelsDevelop and nurture capability at all levels within the BoardCompliance with employment equity legislation

Strategic Objective Stakeholder Relations

Objective statement Stakeholder Management function to drive strategies and implement plansParticipation in joint structures and Initiatives

2014 STRATEGIC PRIORITIES

The primary area of performance for the period 2014/15 will be:

•Delimitation of wards for the 2016 Local Government Elections;•Bi-annual Assessment of Municipal Capacity;•Render advisory service in respect of Demarcation matters;•Undertaking Research into Local government;•An efficient and effective organisation;•Ensure good Corporate Governance.

PROGRAMMES SUPPORTING IMPLEMENTATION OF STRATEGY

The implementation of the strategy is supported by three programmes as follows:

Programme 1: Operations and Research•This programme provides specialist support services to the Board in the areas of Delimitation of municipal wards, Categorisation of municipalities and Research.

•The programme gives effect to the institution’s legislative mandate of determining and re-determining municipal boundaries, categorisation of municipalities, delimitation of municipal wards, assessment of municipal capacity and rendering advisory services to matters pertaining to demarcation.

•The programme consists of three sub-programmes which are:– Sub-programme 1.1: Delimitation and Determinations– Sub-programme 1.2: Research– Sub-programme 1.3: Geographic Information Systems (GIS) and Database

Management

PROGRAMMES SUPPORTING IMPLEMENTATION OF STRATEGY

Programme 2: Financial Management •This programme provides financial management services to the institution. It gives effect to the MDB’s strategic goal of an effective and efficient organisation. The programme consists of one sub-programme which is:•Sub-programme 2.1: Financial management

Programme 3: Corporate Services•This programme provides administrative and corporate services to the institution. The programme gives effect to the institution’s strategic objectives, i.e.

– Optimal performance and service focused culture;– Enhancement of stakeholder relations and communication;– Ensuring good governance

•It consists of three sub-programmes, which are– Sub-programme 3.1: Administration and Human Resources, – Sub-programme 3.2: Legal and Secretariat and – Sub-programme 3.3: Stakeholder management and Communication.

PROGRAMME 1

OPERATIONS AND RESEARCH

2014 ANNUAL PERFORMANCE TARGETS PROGRAMME 1

A GLANCE AT WARD DELIMITATION

Ward delimitation process

Legal and Consultation process

IEC Process

IEC Process

Draft wards and Public

participation

Prepare for local

elections

WARD DELIMITATION PROCESS

o Municipal wards are reviewed every five (5) years in all municipal areas both metropolitan and local municipalities.

o A ward is delimited or configured for purposes of facilitating local elections thereby deepening democracy at a local level.

o For each municipal ward, a ward councillor is elected.

o The Municipal Demarcation Board has a responsibility to delimit wards to empower the electorate to elect councillors and parties of their choice in the municipal area within which the elected councillors and the municipal administration must provide services.

o The ward delimitation criteria are different from the general criteria guiding

decisions on outer boundaries. This is because the demarcation criteria are

largely about ensuring viable, effective and sustainable municipalities, whereas

the ward criteria are almost exclusively about ensuring the conditions for local

democracy and representation of voters on the municipal council.

o When delimiting municipal wards the Board is legally obliged to adhere to certain

legislation. The main piece of legislation to which we work is Schedule 1 to the

Municipal Structures Act No 117 of 1998 sets out criteria to which the Board

required to have regard in conducting ward delimitations. In broad terms, they are:

o The number of registered voters in each ward may not vary by more than fifteen

per cent from the norm, where the norm is determined by dividing the total number

of registered voters on the municipality's segment of the national common voters roll

by the number of wards in the municipality.

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KEY LEGAL REQUIREMENTS PER MUNICIPAL STRUCTURES ACT, 1998

o The need to avoid as far as possible the fragmentation of communities.

o The object of a ward committee as set out in section 72(3) which is to enhance participatory democracy in local government.

o The availability and location of a suitable place or places for voting and counting if appropriate, taking into consideration- (i) communication and accessibility; (ii) density of population; (iii) topography and physical characteristics; and (iv) the number of voters that are entitled to vote within the required

time-frame. (e) the safety and security of voters and election material. (f) identifiable ward boundaries.

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KEY LEGAL REQUIREMENTS IN MUNICIPAL STRUCTURES ACT, 1998

The above criteria seeks to:

oensure less disruption to the voting process.

oensure that all voters in a ward are able to reach a voting stations easily. oensure the safety and security of voters.

oensure that residents who think of themselves as a community are able to vote together and are able to participate in the process together.

oensure that communities are kept together in the same ward (though this is not always possible, especially with regard to traditional author areas).

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KEY LEGAL REQUIREMENTS IN MUNICIPAL STRUCTURES ACT, 1998

2014-2015 WARD DELIMITATION PLAN

TIMEFRAMES ACTIVITY STATUS

March 2014 IEC certify the voters’ roll in municipal segments Completed

April 2014 Provincial information sessions Completed

Awaiting Date Minister publish formula for determining the number of councillors

Awaiting publication

Awaiting Date MECs publish number of councillors Awaiting publication

August-September 2014

Draft first set of ward boundaries, and other documents to assist public to participate. Prepare to launch the consultative process

September 2014 Launch the consultation process and make information available to municipalities.

2014-2015 WARD DELIMITATION PLAN

TIMEFRAMES ACTIVITY

September 2014 - January 2015

Municipal consultation meetings with stakeholders and communities and submission of final proposals

January - March 2015 Consider all submissions received from municipalities and the public;

Map all proposals in preparation of publication.April 2015 Publish ward boundaries in provincial gazettes for objections.

April – May 2015 Process objections and convene meetings of ward delimitation committees to consider objections.

June 2015 Gazette final confirmed and varied ward boundariesHandover to the IEC

PROGRAMME 2

FINANCIAL MANAGEMENT

PROGRAMME 3

CORPORATE SERVICES

MEDIUM TERM EXPENDITURE FRAMEWORK

Historic performance

R’000 2010/11 2011/12 2012/13 2013/14

Grants received 37 187 38 482 40 397 42 182

Other income 692 641 926 948

Employee cost 11 322 12 061 13 084 17 991

Goods and services 22 344 21 447 18 956 24 410

Lease payments 2 311 2 311 2 311 2 311

Total 35 977 35 819 34 351 44 712

Surplus /(Deficit)for the year 1 902 3 304 6 972 -1 582

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Budget allocation from Vote 3

R’000 2013/14 2014/15 2015/16 2016/17

Grants received 42 152 44 230 45 793 48 220

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• Budget allocation increased from R42.1m in 2013/14 to R44.2m

• Representing a nominal increase of 4.9%

• Budget shortfall will be funded by accumulated surpluses over the medium term

• Accumulated surpluses as at 31 March 2014 amount to R25.6m


Budgeted Expenditure by Economic classification

MTEF expenditure by economic classification R’000 2014/15 2015/16 2016/17

Compensation to employees 23 668 24 756 26 649

Lease payments 3 010 3 010 3 010

Goods and services 23 263 23 523 23 945

Total operating expenditure 48 965 51 079 53 604 Capital expenditure 976 210 250 Gross expenditure 49 941 51 289 53 854


Budgeted Expenditure by Programme

Programme R’000 2013/14 2014/15 2015/16 2016/17% share (budget

year)

P1 : Operations and Research 17 577 18 477 19 328 20 294 37%

P2 : Finance 6 346 6 647 6 953 7 297 13%

P3 : Corporate Services 23 211 23 841 24 799 26 013 48%

Total operating expenditure 47 134 48 965 51 080 53 604 98%

Capital expenditure 503 976 210 250 2%

Gross expenditure 47 637 49 941 51 290 53 854 100%


Utilisation of accumulated funds

UTILISATION OF ACCUMULATED FUNDS R'000

Surplus funds at 31 March 2014 25 643

2014/15 - funding of deficit -5 683

Projected Funds at 31 March 2015 19 960 2015/16 - funding of deficit -5 325

Projected Funds at 31 March 2016 14 653

-

2016/17 funding of deficit -5 597

Projected Funds at 31 March 2017 9 038

CHALLENGES

Challenges with respect to the functions of the Board:•Litigations in respect of decisions taken by the Board which may affected other processes of the Board such as preparations for 2016 local elections

•Proposals of Boundary redeterminations outside of the mandate of the Board, specifically provincial boundaries

•Lack of institutional capacity within the core functions. This gap will be closed during the current financial year by filling vacancies of critical positions such as Head of Research, research specialists and Head of Stakeholder management and Communication

CONCLUDING REMARKS

• Delimitation of municipal ward in preparation for local elections is a priority during 2014/15 and 2015/16 financial years

• This process is key towards contributing to deepening of local democracy

• The Board will continue to improve public participation so as to ensure that communities affected are involved in delimitation of wards

• The success of this process within the local government system depends on support and participation of key stakeholders;

• The Municipal Demarcation Board is committed to the realisation of our vision of a Sustainable Local Government System

Thank you!

delegation ms mjj thupana chairperson: municipal demarcation board mr am adam

Documents

executive chairperson

financial year2013

portfolio committee

new board

executive committeepolicy

research committeeboundaries

local government sector

accounting officer