2011 LOCAL GOVERNMENT ELECTIONS AND THE BUDGET PROCESS 24 JANUARY 2011 Gallagher Convention Centre

1. 2/10/2012 1 2011 LOCAL GOVERNMENT ELECTIONS AND THE BUDGET PROCESS 24 JANUARY 2011 Gallagher Convention Centre

2. 2/10/2012 2 CONTENT INTRODUCTION SUPPORT TO THE 2011 LG ELECTION INSTITUTIONAL SUPPORT TO THE 2011 LG ELECTION STRUCTURAL CHANGES IN MUNICIPALITIES IMPLICATIONS OTHER ISSUES FOR CONSIDERATION NEW LG LANDSCAPE POST 2011 MUNICIPAL ELECTIONS OBJECTIVE OF THIS INTERACTION 9. RECOMMENDATIONS

3. 2/10/2012 3 1. INTRODUCTION The term of office of the current municipal councils commenced on 01 March 2006, and expires on 02 March 2011. We are aware that the election should be held within 90 days after the expiry date of the last election. In this instance, the 90 days period starts from 2 March 2011 ending on 30 May 2011. The Minister, after consulting the IEC will, by Notice in the Government Gazette, call and set a date for an election of all municipal councils.

4. 2/10/2012 4 2. SUPPORT TO THE 2011 LG ELECTION a) Government established an Inter-Ministerial Committee (IMC) on the election to coordinate support to the Electoral Commission. b) The IMC consists of Ministry for COGTA, Home Affairs, Defence and Military Veterans, State Security, Police, Presidency, the Municipal Demarcation Board, South African Local Government Association and the IEC. c) A Technical Committee is established to support the IMC, the Technical Committee also includes provinces.

5. 2/10/2012 5 3. INSTITUTIONAL SUPPORT TO THE 2011 LG ELECTION a) The COGTA Minister published a formula for the determination of the number of councillors and provincial MECs determined number of councillors; b) The MDB delimited wards and handed over final wards to the IEC on 1 September 2010. c) After 1 September 2010 the IEC commenced with their logistical preparation for municipal elections. d) The election campaign was launched by the IEC on 12 January 2011, and first registration dates were announced as 5 and 6 February 2011. e) The Ministry for COGTA will soon be publishing the final draft Regulations on the participation of municipal staff members in the election for implementation.

6. 2/10/2012 6 4. STRUCTURAL CHANGES IN MUNICIPALITIES a) New Metros Mangaung LM from the disestablished Motheo DM in the Free State Province, and Buffalo City from the Amatole DM in the Eastern Cape Province will be Category A municipalities( Metros). b) Disestablished municipalities Motheo DM in the Free State Province. Metsweding DM, Kungwini and Nokeng Tsa Taemane LMs� in the Gauteng Province to be incorporated into Tshwane Metro. c) Merger Kagisano & Molopo local municipalities in the North West Province to be combined into one municipality.

7. 2/10/2012 7 4. STRUCTURAL CHANGES IN MUNICIPALITIES d) Extended DMs Mantsopa LM to be included into Thabo Mofutsanyane DM & Naledi LM to be included into Xhariep DM in the Free State Province both LMs were under disestablished Motheo DM. Mbizana & Ntabankulu LMs from OR Tambo DM to be included into the Alfred Nzo DM in the Eastern Cape Province. e) Technical re-determination of municipal boundaries A portion of Intsika Yethu/Chris Hani will move to Mbashe/ Amatole and A portion of Intsika Yethu will move to Engcobo, Some villages in Ntabankulu/ OR Tambo DM will move to Umzimvubu/ Alfred Nzo DM all in the Eastern Cape Province.

8. 2/10/2012 8 4. STRUCTURAL CHANGES IN MUNICIPALITIES (CONT) f) Technical re-determination by the MDB Some land will move from Letsemeng LM to Kopanong LM in the Free State Province. A portion of Randfontein LM will move to Westonaria LM in the Gauteng Province. 12 of the current wards of Hlabisa LM will move to Mtubatuba LM, and 1 ward will move from Ndwendwe LM to Kwadukuza LM all in the KwaZulu-Natal Province. Some farms will move to from Aganang LM to Blouberg LM in the Limpopo Province.

9. 2/10/2012 9 4. STRUCTURAL CHANGES IN MUNICIPALITIES (CONT) g) District Management Areas All District Management Areas are withdrawn by the Municipal Demarcation Board, this change affected 54 local municipalities . It should be noted that the effective date for many re-determination of municipal boundaries is from the date of the 2011 local government elections. Municipalities that are affected by the re-determinations must therefore prepare budgets for 2011/2012 that take into account new municipal areas.

10. 2/10/2012 10 5. IMPLICATIONS THAT REQUIRE THE LEADERSHIP OF THE ADMINISTRATION TO CONSIDER: a) The budgetary process as per the MFMA which Treasury will present on; b) The constitution of new Councils in the 278 municipalities; c) Induction of new Councilors; and d) Training of newly established ward committees

11. 2/10/2012 11 5.1 OTHER IMPLICATIONS a) There will be implications on Local Government Equitable Share allocations; b) Implications for Municipal Infrastructure Grant allocations c) Implications for other conditional grant allocations d) Implications for the RSC levy replacement grant e) Implications for the Fuel Levy Sharing with Metros f) Implications for the assets and liabilities of municipalities particularly in relation to Section 12 and 14 of the Municipal Structures Act. g) The National Treasury presentation will give details on the implications

12. 2/10/2012 12 6. OTHER ISSUES FOR CONSIDERATION a) Implication of the Special vote b) Publishing of the section 12 notices by remaining provinces and any other implication emanating from section 14(2-5) of the Structures Act.

13. 2/10/2012 13 7. NEW LOCAL GOVERNMENT LANDSCAPE POST- 2011 MUNICIPAL ELECTIONS a) The re-determination of municipal boundaries and the delimitation of wards by the Municipal Demarcation Board resulted in structural change in number of municipalities and wards. b) A total of 278 municipal councils will be contested in the 2011 municipal elections. It is a reduction of 5 municipalities from the current number of 283 municipalities. c) There will be 8 metropolitan municipalities, 226 local municipalities and 44 districts municipalities. d) The number of wards according to MDB has increased from 3895 to 4277.

14. 2/10/2012 14 8. The objective of this interaction is therefore to look at all the implications and plan accordingly wrt: a) The budgetary process as per the MFMA which Treasury will present on b) The constitution of new Councils in the 278 municipalities c) Induction of new Councilors d) Training of newly established ward committees e) Broadly to remind ourselves of the various milestones that should be achieved within the next 5months We must remember that this will be happening amidst all other reporting requirements imposed on all of us by other prescripts

15. 2/10/2012 15 9. RECOMMENDATIONS a) DCoG will issue the guidelines on the constitution of Councils b) DCoG in consultation and together with SALGA monitor the constitution of Councils as per the guidelines c) The Ministry of CoGTA will publish the final regulation with regard to the participation of municipal staff members during the election period d) Municipalities must prepare thorough induction sessions with new Councils on the IDP and Budget processes once sworn in.

16. 2/10/2012 16 9. RECOMMENDATIONS (Conti) e) All provinces (if not done already) ensure that the budgeting and IDP processes schedules are finalised on or before the 04 February 2011 f) The plan above be submitted to MCJackals@cogta.gov.za by the 11 February 2011 g) DCoG, National Treasury, Provincial LG departments and provincial Treasuries monitor and assist the budgeting and IDP processes of all municipalities as per the plan submitted

17. 2/10/2012 17 THANK YOU