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Role of Organised LG to meet LG Objectives

IMFO: WESTERN CAPE. Role of Organised LG to meet LG Objectives. 5 June 2012 Reuben Baatjies (Gov & IGR). 1. OUTLINE. 1. Introduction 2. Role of SALGA Legislation SALGA Constitution Activities 3. The Next Phase 2012-17 4. Key IGR Processes

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Role of Organised LG to meet LG Objectives

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  1. IMFO: WESTERN CAPE Role of Organised LG to meet LG Objectives 5 June 2012 Reuben Baatjies (Gov & IGR) 1

  2. OUTLINE 1. Introduction 2. Role of SALGA • Legislation • SALGA Constitution • Activities 3. The Next Phase 2012-17 4. Key IGR Processes 5. SALGA in Fiscal IGR Process 6. Conclusion – meeting the objective of Dev. LG

  3. 1. Introduction • In order for LG to participate effectively in intergovernmental relations, it needs to act as a collective, through an organised LG structure. • S163 of the Constitution, recognises OLG as the legitimate voice for LG and affords it representation in key national institutions. • The section further provides that an Act of Parliament must cater for the recognition of nat and prov organisations representing municipalities, and determine procedures by which LG may consult the nat and prov govt, designate representatives to participate in the NCOP and nominate persons to the FFC. • SALGA is not a statutory body, but has official status through the executive act of recognition.

  4. Vision of role of OLG 1998 White Paper on LG • SALGA’s key role is the effective representation of LG in the legislative and IGR processes of govt, and in executive processes. • SALGA also has potential to make a strong contribution to the development of municipalities throughout the country, through, for example: • Provision of specialised services to supplement and strengthen the capacity of municipalities. • Research and information dissemination. • Facilitating shared learning between municipalities. • Human resource development. • Councillor training.

  5. 2. Role of SALGA • The IGR Framework Act makes specific provision for OLG’s participation in both national and provincial IGR structures, enabling SALGA to influence nat & provincial legislation and to gauge the impact of such legislation on LG. • Section 3 of the Municipal Systems Act builds on the role of OLG and provides that for the purpose of effective co-operative government, OLG must seek to- (a) develop common approaches for LG as a distinct sphere of government; (b) enhance co-operation, mutual assistance and sharing of resources among municipalities; (c) find solutions for problems relating to LG generally; and (d) facilitate compliance with the principles of co-operative government and intergovernmental relations.

  6. Role of SALGA Outlined in SALGA Constitution as including: • Represent, promote and protect interests of LG; • Represent municipalities in key IGR structures at both provincial and national level; • Position LG at the centre of cooperative governance and development; • Deepen democracy and accountability at the local level; • Optimise the governance system within municipalities; • Enhance Role and Status of Municipalities; and • Contribute to transformation of LG to be developmental. • Thus, the dynamic external context within which SALGA operates, and its own internal manifestations, has largely shaped the organisation’s strategic direction.

  7. SALGA MANDATE The Voice of Local Government Lobby, Advocate & Represent Knowledge & Information Sharing SALGA Mandate Support & Advice Employer Body Strategic Profiling Capacity Building Transform local government to enable it to fulfil its developmental mandate. Act as an employer body representing all municipal members and, by agreement, associate members. Lobby, advocate, protect and represent the interest of local government at relevant structures and platforms. Support and advise our members on a range of issues to assist effective execution of their mandate. Build the capacity of the municipality as an institution as well as leadership and technical capacity of both Councillors and Officials. Serve as the custodian of local government intelligence and the knowledge hub and centre of local government intelligence for the sector. Build the profile and image of local government within South Africa as well as outside the country. The Voice of Local Government

  8. Overview ofActivities of SALGA Undertaking internal governance activities to manage and provide oversight over the activities of SALGA Participating in mandatory inter-governmental structures and undertaking legislated responsibilities Supporting the transformation and restructuring of the local government sector, including research and advocacy on key local government issues Providing services to members, including research and advocacy on key local government issues, and other direct support to municipalities

  9. Challenges in SALGA’s Role • SALGA has experienced no. of constraints in fulfilling its role in IGR in an effective and meaningful manner due to the following: • Representatives (while deployed to represent the interests of organised local government) often advance individual municipal interests; • Political deployment challenges due to part-time nature of cllrs; • Policy issues other than high profile ones do not receive political attention; • Absence of effective and speedy mandating processes; • Inadequate feedback to members; and • General lack of understanding and appreciation by both internal and external stakeholders of the SALGA mandating process.

  10. 5-YEAR KPI: Result indicator demonstrating performance against 5 year targets STRATEGIC OBJECTIVES: Means through which SALGA contributes to the attainment of the developmental outcomes of the Sector STRATEGIC GOALS: Development outcomes that SALGA seeks to assist the sector to achieve APEX PRIORITIES: Key programmes which, if achieved will fundamentally transform Local Government towards better delivery on all its developmental mandates 1-YEAR KPI: Result indicator demonstrating performance against annual targets KPA’s: Key areas of performance towards the achievement of the desired outcomes ANNUAL TARGETS: Progressive input indicators, which culminate in the achievement of the KPIs 3. The Next Phase SALGA 2012 – 2017

  11. Strategic Goals and Apex Priorities2012 - 2017 GOALS • Local Government delivers equitable and sustainable services • Safe and healthy environment and communities • Coherent Planning and Socio-economic development at the local level • Effective and responsive Local Govt that is accountable to communities • Human Capital development in local government • Financial and organisationally capacitated municipalities • An effective and efficient administration APEX PRIORITIES • Fiscal and Financial Management • Legislative and Policy Review • Municipal Capacity Building

  12. APEX PRIORITIES

  13. This goal encapsulates the various policy, strategy and support initiatives that are required to build and enabling fiscal framework and adequate local government capacity to deal with financial management. The ultimate focus of this goal is build long term financial viability and broader sustainability of municipalities. The financial challenges faced by municipalities have been well documented, with some municipalities demonstrating a lack of financial viability. This has an obvious impact on the ability of municipalities to be fully functional and perform on its mandate. This is firstly due the challenges in the current fiscal framework and the processes associated with fiscal transfers and the equitable share model. It is also linked to a broader policy that does not differentiate in the definition or categorisation of municipalities. The reality is that many municipalities face significant challenges in financial and organisational viability. This problem has persisted since the establishment of democratic local government. Hence there is a need to address some the fundamental difficulties associated with the fiscal framework for local government. • Efficient and effective municipal finance management and an Equitable intergovernmental fiscal system through: • Lobby National Treasury, Parliament and other stakeholders for an equitable intergovernmental fiscal system • Review Legislation and policy framework for efficient budgeting, revenue and expenditure management in LG • Improved financial governance and audit outcomes • Recognition of a differentiated financial support for municipalities Goal Execution Goal Definition Problem Statement

  14. 4. Key IGR Processes • Legislative process • The OLG Act allows SALGA to designate up to 10 part-time representatives to the NCOP in Parliament, as non-voting members. • LG Week 2012 and beyond • Budgetary process • LG Budget Forum • The Financial and Fiscal Commission. • Executive Governance Processes • Cabinet Makgotla; President’s Coordinating Council • MinMECs; Premier’s Intergovernmental Forums, MuniMECs, MinMay • Technical IGR Forums

  15. 5. SALGA in Fiscal IGR • In this process of systematically developing its analysis and advocacy capacity regarding IGFR and municipal fin, SALGA pursues the objective of a financially capacitated LG sphere to carry out its constitutional mandate. • IGFR and mun finance is naturally at the heart of SALGA’s IGR engagement strategy with national govt. • Considerable progress has been made in the past years in terms of SALGA’s capacity to represent LG in crucial negotiation fora, such as the Budget Forum, where SALGA has made substantial inputs through submissions of key policy positions. • Budget Forum = Minister of Fin, MECs for Fin and OLG.

  16. Fiscal IGR – Budget Forum • Since 2006, SALGA has consistently raised issues around; (i) support for smaller municipalities; (ii) repairs and maintenance; (ii) increases in LG Equitable Share transfers; and (iv) unfunded mandates. • In 2009 key insights presented from an analysis of the annual fin statements of muns which illustrate the varying service delivery contexts / fin management capacity of different types of muns. • In 2010, 3 papers were submitted for discussion, i.e. (i) the nature and extent of outstanding municipal debtors together with recommendations; (ii) review of the LG fiscal framework; & (iii) progress on application for a local business tax. • In 2011 a submission on a number of factors that constrain revenue management and financial sustainability of municipalities, such as AARTO; non-alignment of NERSA’s tariff determination process with the municipal budget process; and the possible impact of the Consumer Protection Act.

  17. Other Fin Support Initiatives • SALGA developed a Brochure on the 2011/12 Division of Revenue Act = easy reference for municipalities to all the allocations they receive from nat and prov govt and also a view of the allocations that other municipalities in the province receive. • SALGA developed an induction programme for all councillors following the 2011 elections – some 8 600+ cllrs were inducted. • SALGA has entered into a partnership with the INCA Capacity Building Fund (ICBF) to roll out a practical capacity building programme on financial management for municipal cllrs. The programme will be rolled out during the 2012/13 financial year. • SALGA and IMFO has entered into a formal MOU - many of these issues are identified, deliberated on and solutions developed together with IMFO through its various forums.

  18. 6. Meeting the Obj. of Developmental LG • The fundamental principles of developmental LG articulated in the White Paper remain our collective vision and thus the key objective for the sector. • 12 years have passed since democratic LG dispensation in South Africa was established - while significant successes have been achieved in expanding democratic participation and the provision of services to a majority of our people, we are still confronted with significant obstacles to meeting our constitutional obligations to citizens. • We firmly believe that if the 3 Apex Priorities as identified are addressed, we would have gone some way to meeting the expectations of our members and the objectives of LG.

  19. In conclusion • SALGA thus has a clear strategic role to play in representing the interests of LG within the system of govt as a whole and within IGR structures in particular, as well as playing a more direct hands-on support role to our members. • The new 2012-17 Strategy and its accompanying structured engagement and support initiatives gives SALGA an opportunity to strengthen our relationship with existing stakeholders (such as IMFO) as well as to build new ones to play our role effectively. • The next 5 years will be critical to securing the long-term sustainability and credibility of LG – SALGA must lead in realising the constitutional imperative of developmental LG.

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