1 www salga org za Portfolio Committee Co

1 www. salga. org. za Portfolio Committee: Co. GTA 8 March 2016 SALGA APP FOR 2016 -17 (Incl. Progress Report, Strategic Priorities and Budget) Cllr Thabo Manyoni National Chairperson

www. salga. org. za Scope and Outline • Evolution of SALGA and current status – Evolution, mandate and current strategy • 20 years of supporting LG (successes in implementing mandate and strategic priorities) • 15 years of democratic LG – trends and analysis • Key highlights over the last 12 months (since last meeting) • Readiness to guide and manage the transition (for SALGA and sector) – Current challenges and imperatives informing the APP (incl. B 2 B 10 point plan) – 2016 -17 flagship priorities and major events – Key indicators for the 2016 -17 APP • MTREF Budget for 2016 -17 to 2018 -19 – Financials, revenue and expenditure – Operational sustainability, savings and cost containment measures 2

www. salga. org. za 1. Evolution of SALGA and sector – Successes in implementing our mandate and strategic priorities – 15 years of democratic local government – analysis and trends – Key highlights over the last 12 months (since last meeting) 3

www. salga. org. za Evolution of SALGA to its current state • This year (2016) marks 20 years since SALGA was formally established by municipalities • Members then mandated the organisation to: – Represent, promote and protect the interests of LG in our cooperative governance and IGR system (reason for existence) – Assist in the transformation of LG, particularly in establishing the structures, systems, policies and procedures for effective, accountable & people centered LG • Assist the sector to entrench a developmental culture, focused not merely on service delivery but on transformation of spaces and places • Knowledge sharing, peer learning and innovation in the quest to do things ‘differently’ – White Paper advocated need to find innovative ways to be developmental, and charged SALGA to play a key role 4

5 www. salga. org. za THEREFORE WE SHAPED OUR ROLE TO SALGA Mandate

www. salga. org. za 15 Years of Democratic & Developmental LG At the same time, LG (supported by SALGA) has come a long way since its establishment in 2000 • Moved from a highly fragmented racial based system of LG to an integrated democratic system, with uniform wall-to-wall municipalities that has yielded: • Democratic participation – no citizen is unrepresented and is able to hold local leaders accountable (govt. close to the people) • Consolidation of over 1000 local authorities into 880+ before the 2000 elections and 283 municipalities in 2000, now 278 – this is massive transformation • Government structures and admin have been established in areas with little or no LG previously • a comprehensive legislative / policy framework put in place for LG 6

www. salga. org. za Wall-to-Wall Municipalities 1999 to 2000

www. salga. org. za 15 Years of Democratic & Developmental LG • There could be no doubt about the enormity of our LG’s twin challenge: – Service delivery and extend basic services to as many (if not yet all) South Africans as possible to restore decency and dignity – Transformation - spatial legacy of apartheid and build integrated human settlements and social cohesion through greater integration of spaces into liveable places • LG has had a profound impact on the lives of ordinary South Africans in expanding the provision of services to so many more millions of people • Clearly, the official and disaggregated statistics show that tremendous progress has been made particularly in historically neglected areas like former homelands – Eastern Cape, Limpopo, KZN, Free State and Mpumalanga), despite continually chasing a moving target due to our population growth and in-migration • Substantial progress has been made in developing communities… 8

www. salga. org. za Ensuring Sustainable Service Provision to Communities Local Government has made a huge contribution to ensuring delivery of basic services to the poorest of the poor & to improved dignity & quality of life. Concerns however remain in certain services in certain geographic areas

www. salga. org. za Service Delivery Trends • Macro trends in the provision of water, electricity for lighting, sanitation and refuse removal (using 2011 as a baseline against present performance) • By 2013 we had significantly improved the lives of our people to the extent that, of the total of 15. 2 m households at the time: – 11. 7 million households received basic water services (85%) • Of which 5, 2 m received free basic water services (just under 45%) – Just under 10 m households received electricity services from municipalities in 2013, with total household coverage at 84% • Free basic electricity was provided to over 2, 5 m households (25%) – Just under 10 m households received sewerage and sanitation services (63%) • Of which 3, 1 m received free allocations (31%) – Just over 8, 4 m households received solid waste management services (60%) • Of which 2, 5 m received free allocations (just under 30%) • Provision of water has increased nationally from 84% in 2002 to 90% in 2014 • Provision of electricity for lighting purposes, the national average increased from 58, 2% in 1996 to 84, 7% in 2011 to 89. 4%in 2014 • In the 3 years of 2011 to 2014, electricity reached 5. 3% more of the total population 10

www. salga. org. za Institutional resilience has been strengthened during this term • Importantly, re the development of LG institutions and their institutional resilience – Financial reports and trends over the last 10 years demonstrate growing capacity and capability of municipalities to spend their capital and operational budgets • averaging around 90% for local and secondary cities as well as metros Establishment of • Municipal Public Accounts Committees • Audit committees • Internal audit units • These structures are now established and are growing in functionality • Focus for next period is supporting them to strengthen functionality Total Number of Municipalities with MPACS 2010/11 2011/12 2012/13 2013/14 2014/15 1 28 278 278

www. salga. org. za Expenditure Trends The recent spate of quarterly MFMA section 71 review reports paint a picture of positive trends showing progress in key areas • On financial management, the quarterly MFMA section 71 review reports paint a picture of some positive trends showing progress in key areas (at end June 2015) – – Against the perception that municipalities do not spend what they get, total expenditure was R 305. 8 billion (88%) of the total adjusted budget of R 347, 3 billion – Aggregate billing and other revenue stood at 93. 2% (R 319 billion) on average of the total revenue budget – Municipalities expenditure on capital budgets stood at R 53, 2 billion or 81% – Aggregate expenditure on conditional grants was 91. 9 % of the R 25. 5 billion direct allocations to municipalities – When billed revenue is measured against adjustment budgets, the performance of metros shows surpluses across three of the four core services (however, doesn’t take into account actual collection rates) • Actual collection rate was 90% among metros – Metro expenditure amounted to 92. 8% and secondary cities at 86. 6% – As at 30 Sept 2015, total investments by muns amounted to R 27. 1 billion 12

www. salga. org. za Improvement in overall audit outcomes: 2007 – 2013 -14 MFMA Unqualified with no findings Unqualified with findings Qualified with findings Adverse with findings Disclaimed with findings Audits outstanding 335 auditee s 333 auditee s 330 auditee s 327 auditee s 321 auditee s 338 auditees 13

www. salga. org. za Audit Outcomes 07 – 14: Key Trends • Improvements in all categories of audit opinions & over the 6 year timeframe reflects a positive trend – Unqualified opinion with no other matters (“clean audit opinions”) from 30 to 58 – Reduction in adverse, disclaimers and audits not finalized reflects that the trend is positive • Adequate consequence management in 50% of auditees which reflects a significant improvement compared to the prior financial year where this was at 29% = clear indication that accountability is improving within LG • While the situation must improve further, the AG report confirms this general trend of positivity in all the three critical areas, namely – – improved financial management and accountability practices; – improvements in complying with legislation; and – improvements in meeting performance targets • Thus, the number of municipalities obtaining good audit outcomes also steadily increasing and those with qualified audit outcomes decreasing… 14

www. salga. org. za Audit Areas of Concern • AG report trends have also noted areas of regression in: – Supply chain management practices; Financial health of municipalities; increased unauthorized expenditure • Among those with poor audit outcomes are key problem areas affecting their ability to collect revenue (AG cites slow response to address internal controls as key issue) – ICT Governance (systems) and Controls – Proper record keeping – Regular and accurate reporting 15

www. salga. org. za SALGA introduces Municipal Audit Support Programme (MASP) in 2014 § All 4 pillars in a municipality need to be strong and functioning effectively in order for a municipality to obtain and sustain unqualified audits and good service delivery § SALGA is confident that the MASP (based on these 4 Pillars of Support) cover the risk areas and root causes identified by the AGSA as well as the three aspects audited Institutional Capacity Financial Management Leadership Governance

www. salga. org. za Latest Audit Outcomes 2014 -15 120 Audit Outcomes per category 110 100 90 Number 80 70 60 50 40 30 20 10 0 14/15 13/14 14/15 Unqualified with no findings 3 2 16 12 35 27 54 Unqualified with findings 3 4 16 18 90 85 109 Qualified 2 2 7 8 66 59 75 Adverse 1 1 2 1 3 Disclaimers 2 4 27 47 29 Audit not finalised 2 1 6 7 8 Unqualified with no findings Unqualified with findings Qualified Adverse Disclaimers Audit not finalised Two year comparison per Category 13/14 41 107 69 2 51 8 17

www. salga. org. za Latest Audit Outcomes 2014 -15 % improvement 120 40% 32% 80 20% 9% 2% 0% 60 0% 40 -20% -43% 20 % Difference Number of municipalities 100 60% Emerging National Outlook of 2014 and 2015 audit outcomes per outcome 50% -40% 0 -60% Unqualified with no findings Unqualified with findings Qualified 13/14 Adverse Audit Outcomes 14/15 Disclaimers Audit not finalised % Difference 18

www. salga. org. za 2014 -15 Audit Outcome Highlights • Overall improvement in audit outcomes across all provinces except Limpopo • Free State Province registering it’s first unqualified audit with no findings • Unqualified with no findings: 32% improvement nationally • Approximately 46% of local municipalities moved out of red zone • SALGA provided direct support to 8 of the municipalities that moved out of red zone • 43% reduction in disclaimers nationally • Previous perennial disclaimers reduced by 54% • Red zone reduced to 40 municipalities, of which 14 are perennial disclaimers 19

www. salga. org. za SALGA contribution to audit outcomes 30 Municipalities progressed out of red zone Number of municipalities 25 20 15 10 5 Province 0 UNQUALIFIED WITH FINDINGS QUALIFIED Mpumalanga Kwa Zulu Natal Eastern Cape Limpopo 1 1 2 9 3 UNQUALIFIED WITH FINDINGS North West 4 QUALIFIED Free State 1 3 Northern Cape 5 TOTAL 2 27 SUPPORTED 2 6 20

www. salga. org. za SALGA MASP Highlights • Research which provided baseline • Collaboration with AG, National Archives, SITA, DCo. G on facilitation of provincial records management seminars • Bi-weekly video conferencing with provincial colleagues on implementation progress and challenges • Consolidated quarterly reporting framework initiated • Training for cllrs in Gauteng on interpretation of AFS (to be rolled out to all cllrs post elections) • E-Support Portal initiated for CFO during audit (to be rolled out to all pillars) 21

www. salga. org. za Cllr Induction Programme since 2011 Councillor Induction Programme Province 2011 2013 2015 Eastern Cape 1017 41 15 Free State 761 96 Kwa. Zulu Natal 1670 131 Gauteng 1265 0 Limpopo 1318 97 Mpumalanga 736 20 Northern Cape 431 0 north West 615 13 Western Cape 585 12 15 8398 410 45 Total Trained to Date 15 8853 22

www. salga. org. za Senior Managers Training Support LOCAL DEMOCRACY AND LOCAL GOVERNANCE LEARNING PROGRAMME (LODLOG) EXECUTIVE MUNICIPAL LEADERSHIP DEVELOPMENT PROGRAMME Eastern Cape 3 82 Free State 0 63 Kwa-Zulu Natal 2 124 Gauteng 2 123 5 102 Mpumalanga 2 71 Northern Cape 6 148 north West 0 119 Province Limpopo ___________________________________ 0 Western Cape Total Trained 20 836 23

www. salga. org. za Analysis of Overall Trends • These positive service delivery, spending and capacitation trends could only point towards an increasing capacity of municipalities to plan and execute their programs – Stats. SA data confirms the pace of delivery continues despite chasing a moving target to constant population growth and migration – Ability to accurately report on budgets and financial statements, and improved audit outcomes (including performance measurement) • compared to a decade ago, shows a maturing sector rapidly developing the capability to take on more responsibility in accelerating social transformation interventions on basic services and integrating settlements • Impact of SALGA’s work starting to yield increasing dividends, contrary to the doom and gloom picture 24

www. salga. org. za Key highlights of SALGA support over last 12 months (since last meeting commitments) 25

www. salga. org. za Highlights over last 12 months (since last meeting) SALGA made numerous policy and legislative submissions on new policies and amendments of legislation by Parliament • SALGA made several submissions on Draft White Paper on Safety and Security; the Draft White Paper on the Police as well as the Disaster Management Amendment Bill (now Act) • SALGA advocated for the funding of municipalities on the provision of safety and crime prevention programmes in communities as well as disaster management; and the proposed amalgamation of the Metropolitan Police into the SAPS (‘single police service’ concept by national govt) • SALGA lobbied the National Department of Human Settlements on changes/inputs to Revised Strategy for Accreditation and supporting the next wave of municipalities applying for accreditation, to prepare their applications and build their capacity • SALGA as part of the grant review working group team and steering committee member has substantially affected the LG infrastructure grant review to primarily focus on the implementation of the NDP and Integrated Urban Development Framework (IUDF) • SALGA made several submissions to Winter Budget Forum (June) and Budget Forum (October) on legislative and fiscal policy issues affecting the sector, including LG fiscal sustainability, debt owed to and by muns, as well as demarcation and transitional support) 26

www. salga. org. za Highlights over last 12 months (since last meeting) A number of major milestones and groundbreaking events were hosted • A collective bargaining agreement was concluded with the relevant parties and significant progress on working towards a service charter agreed upon – The agreement covers 270 000 employees in 278 municipalities, for period 2015 -2018 • The inaugural SALGA-SASCOC Conference was successfully held on 10 -11 July 2015 (Mangaung) to clarify roles & responsibilities and forge common programmes on S&R • The 4 th SALGA Women’s Commission National Lekgotla was convened with the main objectives of the Lekgotla was to revive the 50/50 campaign – The programme involved engaging on the current male and female imbalances ahead of the upcoming 2016 Local Government Elections • SALGA successfully co-hosted (with Jhb, Co. GTA and SACN) the 2015 Afri. Cities Summit in Sandton, Johannesburg, from 29 Nov to 3 December 2015, showcasing SA LG to the world and building strategic partnerships for implementing Agenda 2063: The Africa we Want and the global SDGs – SALGA’s position successfully incorporated into the UN Habitat III Africa Position to shape the new global urban agenda • 2015 LG Week (in partnership with NCOP) was held under theme ‘’Celebrating 15 years of democratic and transformative LG - entrenching cooperative govt for people centered dev” 27

www. salga. org. za Highlights over last 12 months (since last meeting) • SALGA organised provincial dialogues on Anti-fraud and Anti-corruption and held a national roundtable on Responsive and Responsible LG in collaboration with the GGLN • The inaugural SALGA Small Towns Conference (#Small. Townmust. Rise) was successfully hosted on 22 and 23 October 2015 in Mangaung, to create a platform for key stakeholders to shape the agenda of revitalising small towns as well as share lessons and good practice in STR – SALGA is now rolling out the STR programme by focusing on 4 key areas, chief among which is to assist municipalities to mainstream regeneration in their IDPs and ensure that key stakeholders across small towns typologies play a meaningful role in the revitalization • A total of 18 pilot towns for the roll out of the Small Town Regeneration (STR) programme were identified and a standard baseline report for STR inception was developed – Assessment of the “state of economy” of each town was conducted & baseline report developed • SALGA continues to provide dedicated support to muns with adverse audit outcomes in the current year – Support provided so far ranges from risk management, internal audit matters, financial management, governance and ICT control • Hands on support continues to be provided to municipalities on HR, labour relations and performance related issues 28

www. salga. org. za 2. Guiding and Managing the Transition – Current challenges informing our APP (incl. B 2 B 10 point plan) – Readiness for the transition (SALGA support) – SALGA major events and strategic ‘flagship’ priorities for 2016/17 • Profiling LG – Key targets for the 16/17 year per strategic (apex) cluster 29

www. salga. org. za Current challenges and imperatives informing our APP Current macro-economic constraints bears relevance to LG and informs our APP response: Rising unemployment and increasing indebtness of citizens (middle class and poor) – Growing consumer indebtedness and ability to pay for services • Growing indigency / Free Basic Services Bill (declining household income) • Studies = 58% of people living within municipalities are unable to pay for rates or services – General increases in provision at micro-level have increased against a backdrop of declining revenues derived – For eg, from 2005 to 2014, the national percentage of people paying for water has declined from 61. 9% to 43, 7% 9 (decreasing revenue base) – Ballooning outstanding debt (govt, business and residents), now over R 115 billion (historic debt accumulated - gross debtors, interest growth) • These amounts include debts older than 90 days and most of it is not realistically collectable – Realistically collectable amount is estimated around R 26 billion (National Treasury) • Metros are owed R 63. 1 billion (2007 = R 23 billion) & secondary cities over R 22. 9 billion (mostly household debt) – Jhb = R 21. 1 billion ; Ekurhuleni – R 13. 4 billion – Tshwane – R 7. 2 billion ; Cape Town R 6. 5 billion 30

www. salga. org. za Current challenges and imperatives informing our APP • Less people are paying more for services; but expectation that services will be provided by LG is increasing – This has huge implications on under funding and cost of services… – Municipalities that are considered technically bankrupt = 6 / insolvent = 83 based on 13/14 audited figures / 29 red zone insolvent muns • Positive trends highlighted earlier signify both progress as well as the current economic climate and consequent threats to erosion of some of the gains we have registered… Other challenges • Economic decline and fiscal constraints; – Mining and manufacturing slowing down rapidly resulting in large scale closure of business in many towns – (hence our #Small. Towns. Must. Rise campaign) – Climate change – drought, heat waves and shortages of water – Energy pressures and bulk water provision demands • Of course municipalities, whether or not responsible, are at the coalface and receiving end of citizens’ experience of these realities 31

www. salga. org. za A municipal view of Community Protests

www. salga. org. za Municipalities believe Community Protests can be reduced

www. salga. org. za B 2 B – Residual Challenges 34

www. salga. org. za B 2 B 10 point plan informing our APP • Build positive community experiences • Prioritise and target municipalities receiving disclaimers for more than 3 yrs – Prioritise and target municipalities receiving disclaimers for more than 3 years – Hands on programme to reverse this trend • Revenue enhancement programme – Metering and credibility of data and bills – Address tariff setting challenges • Appointment of senior managers in municipalities – Monitor post- election new appointments & meeting appropriate skills rqmts – Affordable organogram aligned to core business • Basic and technical services and infrastructure – Mobilise more funding for rehabilitation, refurbishment and replacement of ageing infrastructure, from government grants and loan funding – Make municipal infrastructure procurement more efficient and effective through a national framework contract 35

www. salga. org. za B 2 B 10 point plan informing our APP • Implementation of forensic reports – Monitor implementation of consequence management and accountability • Metropolitan programme – Provision of interim services to informal settlements – Infrastructure investment that stimulate economy • These cities are key drivers of economic growth – metros and large towns produce 80% of the country's GVA and are home to 69% of the population • Strengthening role of district municipalities – Clarify allocation and distribution of powers and functions – Shared service model and support plans for weaker local municipalities • Spatial regional integration (Zones and Spatial Contracts) – Develop spatial strategy for various localities and spaces (District, Locals, small vibrant towns, mining towns and possible new towns) – Develop infrastructure implementation plan (of catalytic projects) 36

www. salga. org. za Our 16 -17 APP therefore responds in large part to these pressing challenges 37

www. salga. org. za Readiness for transition • 2016 LG elections will take place between May 2016 and August 2016 – Final date not as yet determined • In order to ensure a smooth transition, SALGA will provide substantial support to municipalities before, during and after the election • SALGA Framework for the Transition was adopted by the SALGA NEC in November 2015, and is currently being implemented • Following key support components: § Support to municipalities undergoing transition (restructuring of municipalities due to the boundary re-determination) • All 8 prov govts with municipalities involved in major restructuring have constituted Change Management Committees & DCOG has a Municipal Demarcation Technical Committee consisting of DCOG, SALGA, prov govts, MDB, IEC & other role players • SALGA participates in the Change Management Committees in all 8 provinces • Critical aspect is the placement agreement and guidelines to move employees from the municipalities to be disestablished into the newly established municipalities – a draft placement agreement has been developed 38

www. salga. org. za Readiness for transition § Governance stability – rules of order – Development of guidelines/circular on • Appointment and terms of reference for MEOs (draft available and needs to be updated) • Continued meetings of Mayco, Exco, Council during period (first draft done) • Funding of municipal activities related to elections (draft available to be updated) • Preparation of Mayco/Exco report on most strategic issues on horizon • Protocol related to overall administration of municipalities during transition • Extent of delegation of powers to heads of administration during transition • Role of MM during transition (draft available) – Development of “Day 1” guidelines/circulars • Councillor support and benefits to incoming and outgoing councillors (will depend on the benefits, but draft document available) • Convening of Mayoral/Executive Lekgotla for briefing on electoral priorities, state of municipality • The said documents will be ready by the end of March 2016 39

www. salga. org. za Readiness for transition § Cllr induction programme (immediately after elections) – Draw in various subject matter experts to strengthen SALGA’s team to undertake; Content Review, Design, dev & delivery methodology, facilitator recruitment and development – Facilitator recruitment and development, curriculum development for the trainer course and drawing up a project plan to carry out these two phases – Training delivery enhanced through an online system that will be enable cllrs to register and complete an online skills profile for the purposes of identifying training needs – Online training delivery methodology for re-elected cllrs to offer them a refresher induction, whilst a face to face training delivery methodology will be retained for new cllrs • All these will be delivered by SALGA Centre for Leadership and Governance (SCLG) – The CIP 2016 modules will be accredited by LGSETA – The credits will lead to a full qualification – LGSETA accredited facilitators will be used and non returning councillors as support – Cllrs will receive statements of results (SORs) upon successful completion of programme 40

www. salga. org. za SCLG Key Pillars

www. salga. org. za Articulation of CIP 2016 Programmes to Full Qualifications Refresher course E-learning National Certificate: Local Government Councillor Practices NQF Level 3 (SAQA ID 58578) SCLG DELIVERY CIP Course for Councillors below NQF level 4 (12 credits) CONTENT SPECIFIC LG & MODULES WILL BE USED & CUSTOMISED ACCORDING TO NQF LEVELS 42 CIP Course for Councillors above NQF level 5 (8 credits) National Certificate: Municipal Governance NQF LEVEL 5 (SAQA ID 67467)

www. salga. org. za Programme breakdown The programme below is based on the CIP to be 10 days in duration. These topics are not exhaustive but give high level overview. LEARNING AREA METHODO RESPONSIBILITY LOGY DAY 1 DAY 2 1. OVERVIEW OF THE INDUCTION • 2. POLITICAL PARTY ENGAGEMENT • Classroom THEORETICAL BACKGROUND & LEGISLATIVE AND based • Cases POLICY FRAMEWORK DAY 3 MUNICIPAL FINANCE MANAGEMENT (NT 2 DAYS) DAY 4 OVERVIEW OF MUNICIPAL GOVERNANCE IN SOUTH studies • Individual and AFRICA DAY 5 MUNICIPAL PROCEDURES AND PROTOCOLS DAY 6 BEING A LEADER DAY 7 MUNICIPAL STRATEGY PLANNING DAY 8 MUNICIPAL PERFORMANCE & ACCOUNTABILITY DAY 9 STAKEHOLDER FRAMEWORK DAY 10 ETHICAL FRAMEWORK • Group activities 43 NATIONAL TREASURY & VARIOUS STAKEHOLDERS • NT will have 2 days • Political Part Engagements will be 1 day

www. salga. org. za Readiness for transition § Social protection and empowerment plan cllrs, entailing • Skills development training • Once off gratuity payment to non returning councillors • COGTA and SALGA are working out proposals on this • Financial management § The Social Plan for Councillors is currently being developed § In the interim, the Financial Management Training for Councillors has started • Entrepreneurship development 44

www. salga. org. za Key Milestones for 2016 / 17 – Municipal Managers Forum (April) • Key transitional matters (systems amendment act implications) – NMA (18 -20 May, Nelson Mandela Bay) • Managing the Transition and ushering in 4 th democratic term of LG – 2016 Local Government Elections (May – August) • Transition in councils (257 municipalities – 205 locals, 44 districts and 8 metros; 4392 wards) • SALGA Induction Programme (new cllrs post elections) – Provincial Conferences (Sept – Oct) • New provincial leadership for SALGA – National Conference (22 -25 November 2015, Msunduzi) • 20 Years of Inspiring Service Delivery – New NEC » Strategic Plan 2017 -22 adopted 45

www. salga. org. za Key Projects / Strategic Priorities for 2016/17 1. Roll out of the Municipal Audit Support Programme 2. Roll out of SALGA Centre for Leadership & Governance programmes (covered above in highlights and transition slides) 3. Lobby for review of legislation to strengthen LG’s role in integrated planning, economic development and spatial transformation 4. Roll out of Strategic Profiling of LG (next slide) 5. Launch of SALGA knowledge / innovation products and services 6. Sustainable urban development programme is implemented 7. Guide and manage the transition in LG & SALGA (covered in prior slides) 46

www. salga. org. za Strategic Profiling of Local Government § Roll out of the profiling campaign takes place against the backdrop of the LG elections, the milestone of 15 years of democratic and developmental LG and 20 years of the Constitution and chapter 7 establishing and entrenching our local government system § These milestones in the LG calendar provide a good opportunity for SALGA to promote the achievements and successes since the establishment of the democratic and developmental LG, particularly in the face of negative narrative sustained against municipalities § Strategy is also a means to educate / inform South Africans on the functions of municipalities and the success stories which have not been told about how municipalities affect their lives 47

www. salga. org. za SALGA APP (Other key indicators for 2016/17) 48

www. salga. org. za 2016/17 Apex Priority 1: Legislative and Policy Review Purpose: q To decisively address, through appropriate policy and legislation, the deficit in public confidence in LG by consolidating decentralisation, strengthening LG and placing it at the forefront of leading spatial transformation and economic development Expected Outcome By end 2016/17: q Policy and Legislation that was targeted, reviewed and influenced by SALGA was supported by key stakeholders and adopted by Cabinet and/ or Parliament respectively Expected Impact By end of 2016/17: q Functioning of municipalities improved by revised or new policy / legislative frameworks that were influenced by SALGA & has resulted in spatial transformation, improved and sustained service delivery + accountability by municipalities & key role players in municipal space q Over- and inappropriate regulation is reduced, bottlenecks in the current legislative dispensation are unblocked to stabilise the sector & institutional consolidation is achieved

www. salga. org. za Key Indicators - Apex 1 1. Electricity reticulation is delivered in accordance with the Constitution and LG legislative framework (currently not the case due to Eskom special regime) 2. Stronger role for LG in driving integrated & sustainable (urban) settlements, in line w NDP – Linked to B 2 B point # 7 3. Conduct municipal audit on accessibility of community facilities & provision of services – Linked to B 2 B point # 1 4. Lobby for the review of all development planning legislation and frameworks in order to ensure consistency with the provision of the SPLUMA & devolution of key functions to municipalities 5. Structured engagement with National and Provincial Legislatures and the Executive in respect of policy and legislation negatively impacting on LG (led by Parliamentary Review Committee) 50

www. salga. org. za 2016/17 Apex Priority 2: Sound Financial Management and Fiscal Framework for LG Purpose: q Strengthen relations with national & provincial spheres of govt in order to build an enabling fiscal framework for developmental LG and ensure sound financial management within the sector, improve IGR fiscal integration, equity and achieve financial sustainability of LG Expected Outcome By end 2016/17: q Through SALGA’s influence, municipal boundary redetermination, municipal funding, unfunded mandates, cost of compliance with new regulations (SCOA, SPLUMA) & need for regulatory impact assessment framework was recognised by Co. GTA/NT, and considered by Cabinet and corresponding equitable budget(s) appropriated by Parliament q No municipality remains in the red zone regarding audit outcomes Expected Impact By end of 2016/17: q Equitable allocation to LG in the national division of revenue which empowered municipalities to fulflil their constitutional mandates resulting in improved delivery of municipal services q Accountability and public confidence in municipalities is restored through better audit outcomes

www. salga. org. za Key Indicators - Apex 2 1. Improved access to infrastructure funding (grant review outcomes) – Linked to B 2 B point #5 2. A decent, fair and equitable cllr and senior management rem & support framework 3. Oversight and Accountability in LG is enhanced through strengthening effective policies, systems, structures and implementation (transitional package / MPACs) – Linked to B 2 B point #6 4. Lobby for appropriate additional funding to ensure equitable fiscal resources for LG 5. Support municipalities on implementation of financial reforms (SCOA) 6. Indicative cost for water, electricity, waste management and transport services are defined (following on baselines cost of services study) 52

www. salga. org. za 2016/17 Apex Priority 3: Building Municipal Capability Purpose: q Build strategic capability of municipalities to fulfil their mandates in delivering basic services, facilitating inclusive growing local economies that create vibrant livelihoods that are governed by sustainable, transparent and accountable municipal authorities Expected Outcome By the end of 2016/17: q Capacity of municipalities to effectively and efficiently lead, plan, manage themselves and their resources and account to their residents was significantly enhanced compared to 2015/16 baseline – as confirmed by good audit outcomes & service delivery Expected Impact By the end of 2016/17: q Local communities enjoyed visibly improved delivery of basic services, qualitative growth of local economies and employment was recorded and improvements in the quality of life of local residents was confirmed through objective evaluations

www. salga. org. za Key Indicators - Apex 3 1. The role of women in LG is enhanced and gender issues are mainstreamed 2. Municipalities supported on the full implementation of SPLUMA (transition NB) – Linked to B 2 B point #9 3. Small Towns Regeneration Strategy is implemented in further selected towns 4. Municipalities supported to integrate disaster risk reduction, vulnerable groups, migration and poverty eradication in their programmes 5. Represent the employer in collective bargaining & labour relations & advise affected municipalities on labour relations processes and policies (Dispute management, conciliation, arbitration and litigation) 54

www. salga. org. za Key Indicators - Apex 3 6. Prioritised areas of the Professionalization Framework are implemented and monitored in selected municipalities – Linked to B 2 B point #4 7. Phase 3 of the SALGA Centre for Leadership & Governance is implemented 8. Facilitate the implementation of training and leadership development programmes for cllrs and officials (post elections – covered in transition slides) 9. Model on billing and alternative revenue sources implemented in selected municipalities – Linked to B 2 B point # 3 10. Municipal Audit Support Programme implemented in selected municipalities – Linked to B 2 B point #2 55

www. salga. org. za 2016/17 Apex Priority 4: SALGA as a LG centre of excellence, knowledge & intelligence Purpose: q Reposition SALGA as a centre of excellence to strengthen its influence in the IGR space by building strategic capability and brand identity, improve thought leadership to drive the strategic agenda in the sector & internal management to facilitate outcomes and impact Expected Outcome By the end of 2016/17: q SALGA repositioned itself as a qualitative organisation that drove thought leadership, provided a platform for sector specific governance & leadership discourse and established functional knowledge & business intelligence systems Expected Impact By the end of 2016/17: q SALGA had become a reliable, self sufficient and effective centre of excellence and source of sector intelligence, governance and leadership that improved the ability of LG to fulfil its mandate

www. salga. org. za Key Indicators - Apex 4 1. Encourage and assist municipalities to provide greener and more resilient services 2. Knowledge generation and sharing within the sector is enhanced through strategic partnerships 3. Identification and documentation of best practices for various services conducted 4. Strengthening the role and influence of SALGA in the IR arena through participation in UCLG, UCLGA and other relevant regional and international platforms to localise the sustainable development goals and African agenda 2063 5. Strategy on revenue generation, accountability and sustainability of SALGA is developed 57

www. salga. org. za Upping our game and building on the strong foundation • Positioning and strengthening SALGA for the next financial year aims to respond to our members needs and play an effective role in guiding and managing the transition to the 4 th democratic term of LG • A strong and effective SALGA is vital to the optimisation of our developmental objectives and cooperative governance system • We will continue to play our role as required by the Constitution, White Paper and legislative framework – Guided by the needs and priorities of our members 58

www. salga. org. za INSPIRING SERVICE DELIVERY AND PEOPLE CENTERED LOCAL GOVERNMENT THANK YOU