REPRESENTATION TEAM

Mr LJ MahlanguChairperson: Municipal Demarcation Board

Ms N GwayiDeputy Chairperson: Municipal Demarcation Board

Mr SM RadebeChairperson: Audit & Risk Committee

Ms MI MathathoActing CEO: Municipal Demarcation Board

Ms MahlanguActing Chief Financial Officer

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STRATEGIC PLAN AND BUDGET 2012 to 2015

MUNICIPAL DEMARCATION BOARD

BRIEFING TO THE PORTFOLIO COMMITTEE ON COOPERATIVE GOVERNANCE AND TRADITIONAL AFFAIRS

28 FEBRUARY 2012

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

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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:

1. Mr Landiwe Mahlangu - Chairperson: Municipal Demarcation Board

2. Ms Nondumiso Gwayi - Deputy Chairperson: Municipal Demarcation Board

3. Prof. Nico Steytler – based in the Western Cape Province

4. Khosi Ramovha – based in the Limpopo Province

5. Mr Lebina Tsotetsi – based in the Free State Province

6. Ms Grace Castle – based in the Mpumalanga Province

7. Mr Ashraf Adam – based in the Western Cape Province

8. Ms Wendy Ovens – based in the Gauteng Province

9. Ms Lynelle John – based in the Gauteng Province

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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

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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

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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

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MANDATE OF MDB Vision, Mission and Values

1. 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

 

2. 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.

 

3. VALUES Accountability Dedication Effectiveness Impartiality Integrity Professionalism

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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.

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PURPOSE OF SUBMISSION

Mandate: Legislative Framework

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

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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.

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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.

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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.

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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.

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Broad programme for current Boundary Review process Aug 2011 – Jan 2012 Briefing of municipalities on process.

Visits municipalities to explain possible 558 technical corrections to boundaries, and to ask proposals for further boundary changes.

Closing date was 20 January 2012 Jan – March 2012 Consider inputs and map new proposals received. April - June 2012 Inform municipalities of further unfolding of process.

Visits to municipalities for further consultations.June - Aug 2012 Prepare for the legal process.

Publish all section 26 notices to invite views and representation on cases that will be taken forward.

Aug /Sept 2012 Closing date for the submission of written views and representations in terms of Section 26.

Sept 2012 Analyses of section 26 inputs, and review of maps.Sept – Oct 2012 Determine need for formal public hearings, and further investigations,

and public notices in this regard. Nov – Dec 2012 Formal section 28 public hearings, where necessary.

Publish section 21 notices for objections.February 2012 Closing date for section 21 objections.Jan - March 2013 Considers objections and decides which boundary changes should be

confirmed, varied or withdrawn. April - May 2013 Publish board decisions in terms of Section 21(5).

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Broad provisional programme (cont)

June – Oct 2013 IEC and MECs gazette Section 23 notices.

Nov/Dec 2013 Strategic planning and strategic guidance from Board on the ward delimitation process.

Jan/Feb 2014 Formula and number of councillors gazetted.

Feb 2014 New Board appointed.

March 2014 MDB commence with ward delimitation. New Board to decide on the process.

June 2015 Hand over of final ward boundaries to the IEC.

July - April 2015 IEC prepares for the 2016 local elections.

May 2016 Local elections.

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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.

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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.

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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.

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Capacity Assessment 2011: Process

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

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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

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National Completion Status as at 22 February 2012

Province Municipalities not yet engaged with the process

Total No

Free State Mohokare LM, Naledi LM, Masilonyana LM, Tokologo LM, Nala LM, Nketoane LM, Phumelela, Moqhaka LM, Ngwathe LM

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KwaZulu-Natal - 0

Mpumalanga - 0

Northern Cape Thembelihle LM, Siyancuma LM, Kai! Garieb LM, //Khara Hais LM, !Kheis LM

5

Western Cape Bitou LM, Prince Albert LM 2

Eastern Cape Great Kei LM, Nkonkobe LM, Tsolwane LM, Inkwanca LM, OR Tambo DM

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North West Kagisano / Molopo LM 1

Gauteng - 022

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

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KEY RESULT AREAS STRATEGIC KEY RESULT AREAS STRATEGIC OBJECTIVES AND OUTPUTSOBJECTIVES AND OUTPUTS

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SUMMARY OF 2012/13 PRIORITIESKey five (5) focus areas Deliverables/ Outcome Timelines

Review of municipal boundaries

Report on reviewed municipal boundaries

December 2013

Re-organisation of the institutional administrative structures

Approved organisational structure, migration of existing staff to the new structure, appointment of key positions, improved organisational processes

April 2012 to September 2012

Enhancement of stakeholder relations communications

Improved consultative process with stakeholders

April 2012 to March 2013

Source funding from National Treasury

Increased funding April 2012 to March 2013

Ongoing assessment of municipal capacity

Reports on capacity assessments available to stakeholders

April 2012 to March 2013

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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.

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RISKS AND ACTIONS TO MITIGATE RISKS AND ACTIONS TO MITIGATE RISKS RISKS

Two main risksInadequate human resources leading to non-achievement of organisational objectivesLack of stakeholder management/public relations leading to low profile of MDBMandate of the Board not being understood by stakeholders

Actions to mitigate risksApproved organisational structure in placeAppointment of stakeholder management specialist

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ENHANCED ORGANISATIONAL CAPACITY FOR THE PERIOD AHEAD

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Chief Executive Officer

Executive: Operations &

Research

Chief Financial Officer

Head: GIS & Database

Management

Head: Research

Head: Determinations &

Delimitations

Specialist: Determinations &

DelimitationsRegion B

Specialist: Determinations &

DelimitationsRegion C

Specialist: Determinations &

DelimitationsRegion A

Specialist: GISRegion B

Specialist: GISRegion C

Specialist: GISRegion A

Research Specialist

Database Administrator

Executive: Corporate Services

Legal & Secretariat Specialist

Head: Admin & HR

IT Specialist

Stakeholder & Media Relations Specialist

Admin Officer

Receptionist

Auxiliary Services Officer

Human Resource Specialist

Jnr IT Specialist

Human Resource Co-ordinator (HRIS)

Jnr Admin Officer

Snr Finance Officer: Financial

Management

Snr Supply Chain Management

Specialist

Snr: Finance Officer: Financial Accounting

& Reporting

Finance Officer: Financial Accounting &

Reporting

Finance Officer: Financial

Management

Supply Chain Management

Officer

Secretary

Secretary

Secretary

Secretary

Chairperson: Municipal Demarcation Board

Secretary

Internal Audit

Assistant Legal & Secretariat Specialist

Assistant Stakeholder & Media Relations Specialist

Project Manager

PRESENTATION LED BY:Ms Matankiso Mahlangu

(Acting CFO of the Board)

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MDB SUMMARY BUDGET

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2011/12R’000

2012/13R’000

2013/14R’000

2014/15R’000

INCOME 39 339 40 859 43 086 45 652

Government grant 38 482 40 362 42 578 45 133

Other income 857 497 508 519

MDB SUMMARY BUDGET

2011/12R’000

2012/13R’000

2013/14R’000

2014/15R’000

EXPENDITURE 39 339 40 859 43 086 45 652

Administrative and operating expenses

20 724 19 521 20 969 22 405

Employee cost 12 384 17 199 18 872 20 713

Audit fees 1 966 1 547 1 702 1 871

Project expenses

4 265 2 592 1 543 663

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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

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EXPENDITURE ESTIMATES PER PROGRAMME

2012/13R’000

2013/14R’000

2014/15R’000

Operations and Research

14 840 15 360 15 254

Financial Management and Accounting

6 244 6 816 7 444

Corporate Services

19 775 20 910 22 954

TOTAL 40 859 43 086 45 652

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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.

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Questions and Comments

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