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INTRODUCTION

D IVISION OF POWERS AND FUNCTIONS Ministerial Authorisations and Revocations PRESENTATION TO PORTFOLIO COMMITEE 29 TH October 2002. INTRODUCTION. Entering the final phase of local government transformation Demarcation process complete

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INTRODUCTION

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  1. DIVISION OF POWERS AND FUNCTIONS Ministerial Authorisations and RevocationsPRESENTATION TO PORTFOLIO COMMITEE29TH October 2002

  2. INTRODUCTION • Entering the final phase of local government transformation • Demarcation process complete • Ministerial decisions on health, water, sanitation & electricity finalised • MEC powers and functions to be adjusted – process underway • Focus on implications of the division of municipal powers and functions

  3. LEGISLATIVE BACKGROUND • Municipal Structures Act Section 83 - all municipalities have the Powers and Functions assigned to them i.t.o. S156 and S229 of the Constitution • S84(1) - lists the P and F of district municipalities • S84(2) - allocates the P and F to local municipalities, except the S84(1) P and F • Minister & MECs have the responsibility to authorise or adjust municipal powers and functions • No legislation for division of fiscal powers

  4. CURRENT POSITION • Status quo retained by Minister and MEC’s after the December 2000 Elections • Minimise service delivery disruptions after demarcation process • Existing MEC authorisations valid until 5 December 2002 • MEC adjustments required, subject to the MDB’s assessment of the municipality’s capacity to perform a function • No time limit to Ministerial authorisations

  5. CURRENT POSITION CONTINUED • Creates uncertainty in respect of the following: • formulation of IDPs • passing of Budgets • finalising administrative re-organisation • General powers not reconciled with Fiscal powers e.g. Equitable Share

  6. PROCESS TO RESOLVE PROBLEM • An inter-departmental task team (IDTT) – DPLG, DWAF, DME, DoH, NT – together with SALGA, FFC and MDB constituted in Oct 2001 • Consultation report based on district diagnostic studies complete by January 2002 • Formal consultation process completed by August 2002

  7. AUTHORISATION PRINCIPLES • For the entire area of the B • Permanent decisions • Water and sanitation together • Bulk and retail together • Alignment of fiscal and expenditure powers • Alignment of municipal equitable share

  8. CRITERIA CONSIDERED • Technical • Organisational related to long term service provision • Organisational related to authority function • Financial & administrative redistribution • Accountability • Transfer costs • Alignment of service provision • Fiscal alignment • Financial sustainability

  9. OTHER KEY CONSIDERATIONS • Demarcation process and its impact on local level redistribution • Minimise loss of local revenue • Minimise transitional costs • Alignment with existing sector processes • Macro economic impact

  10. DECISION: HEALTH • No authorisations to B municipalities • MHS located at category C level • MHS defined as Environmental Health Services • Assignment of provincial functions • Two year transition period necessary - C municipalities will take over all MHS from July 1, 2004

  11. DECISION: ELECTRICITY • Given pending restructuring of the industry, maintain the status quo • Minimise disruptions and increased transition events and costs

  12. DECISION: WATER & SANITATION • Municipal Typologies • All Bs in a C are authorised • One B in a C is authorised e.g secondary cities • C retains powers and functions • Effective from 1 July 2003

  13. AUTHORISATIONS: WATER & SANITATION • Eastern Cape • Bs in Western District & Buffalo City • Mpumalanga • Bs in Eastvaal, Nkangala & Ehlanzeni districts • North West • Bs in Kgalagadi, Bojanala & Southern districts

  14. AUTHORISATIONS: WATER & SANITATION • Limpopo • Bs in Waterberg District & Polokwane • KwaZulu Natal • Mhlatuze, Newcastle & Msunduzi • Northern Cape, Western Cape, Gauteng & Free State • All Bs

  15. IMPLICATIONS: TRANSFER OF STAFF AND ASSETS • Transfer of staff, assets, liabilities, administrative records, rights and obligations • Staff costs may increase owing to remuneration parity • Transfers to be done in terms of the Section 12 Establishment Notices • Assessment of affected staff • Administrative units set up • Conditions of service to be addressed • Physical transfer only after decisions on service delivery options

  16. IMPLICATIONS: FISCAL & FINANCIAL • Division of Fiscal Powers and Functions • Alignment of expenditure and revenue raising powers • Property Taxes • RSC levies • Transfers • Equitable share allocations • Flows from conditional grants

  17. IMPLICATIONS: CAPACITY BUILDING Challenges • Expedite finalisation of establishment • Initiate Section 78 processes • Facilitate service delivery agreements • Transfer staff and assets • Develop service authority and provider capacity Support currently available: • Masibambane programme • PIMS Centres & Nodal Delivery Teams • Project viability & management support teams • Provincial initiatives eg. MISC (GP), MSPP (EC)

  18. IMPLICATIONS: IDP REVIEW • If a municipality is authorised or retains the function, then the municipality has the authority over the function • This means that the municipality is responsible for the: • Policy development, tariff setting, financial management & infrastructural development related to the function • Selecting of the service provider & managing & monitoring the contract • Preparing the sector plan for the function • Making by-laws

  19. IMPLICATIONS: IDP REVIEW • The sector plan for the function will therefore be made by the authorised municipality e.g the WSDP • However, the IDP of a municipality that is not authorised ( B ), or where the function has been revoked ( C ) may still include the function in its strategic plan • For example, in the instance where a C loses the water and sanitation function – the WSDP will be the responsibility of the B, but the C may include a strategic plan for water services within its IDP

  20. IMPLICATIONS: IDP REVIEW • Also broader implications for the IDP review: • The institutional plan to deal with the transfer of staff and assets • The Section 78 processes and the decision on service providers to be taken into account • Budgets to be aligned as financial flows will be affected

  21. IMPLEMENTING THE DECISIONS • Cabinet approval has been given • Gazetting and promulgation • Implementation of joint communication and support strategy • Provincial workshops • District level workshops • Media: video, questions & answers booklet • Alignment with MEC powers and functions

  22. THE END THANK YOU ...

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