Transcript MEC Local Government exco input

Delivering and accounting for
development results – the role of
local government in South Africa
Emperors Palace
Johannesburg
16-17 September 2008
Mayur Maganlal
South African Local Government Association
Overview
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Overview of local government
Approach by local government in
accounting for development results
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Planning framework
Monitoring and review
Resourcing and funding of local
government
Policy and legislative environment
Constitution
(Act 108 of 1996)
White Paper on Local Government
(March 1998)
Legislative Framework on
Local Government
Municipal
Demarcation
Act 27 of
1998
Municipal
Structures
Act 117 of
1998
Municipal
Systems
Act 32 of
2000
Municipal
Disaster
Finance
Management
Management
Act 57 of
Act 56 of
2003
2003
Property
Rates
Act 6 of
2004
Division of
Revenue
Acts
2000-2005
Municipal Performance
Political
Leadership/
Governance
Finance
Management
Service
Delivery
Local
Economic
Development
Institutional
Transformation
Shared with
Provincial
Local Government Functions
Schedule B in Constitution
Beeches &
amusement facilities
Billboards, display of advertisements
Shared with National
and Provincial
Cemeteries, funeral parlours, crematoria
Cleansing
Air Pollution
Building
Regulations
Control of undertakings that sell liquor
Child Care
Facilities
Fire
Fighting
Services
Electricity
& Gas
Facilities for accommodation, care &
burial of animals
Local
Tourism
Municipal Airports
Licensing of
Dogs
Municipal Health Services
Municipal
Public Works
Ferries,
Harbours
Municipal
Public
Transport
Municipal
Abattoirs
Water & Sanitation
Local Sports Facilities
Municipal Parks
& Recreation
Noise
Pollution
Stormwater
Management
Pounds
Municipal
Roads
Traffic &
Parking
Markets
Public
Places
Street Trading
Refuse removal, refuse dumps &
solid waste disposal
15 + 23
= 38
Fences
and
Fencing
Licensing & Control of undertakings
that sell food
Local Amenities
Municipal
Planning
Trading
Regulations
Control of Public Nuisances
Street
Lighting
Planning framework
National
- National Spatial
Development Framework
- Sector Plans
Provincial
- Provincial Growth and
Development Strategies
- Sector Plans
Local
Municipal Growth and
Development Strategies
(long term)
Long term strategy and outcomes
Integrated Development
Plans (5 National KPA)
-5 year municipal plan aligned to
political manifesto for Mayoral Term
-Annually reviewed
-Organisational performance
measures
Service Delivery and
Budget Implementation
Plan
Annual plan outlining how budget
will be implemented
Performance Scorecards
Scorecards for senior managers
Local level planning
IDP
(Municipal Systems Act)
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Council’s long term vision for
development
Assessment of the existing level
of development in the
municipality
Council’s development priorities
and objectives for the elected
term
Council’s development strategies
City’s Spatial Development
Framework
City’s Disaster Management Plan
City’s Financial plan and budgets
City’s key performance indicators
and targets
Strategic document
SDBIP
(MFMA requirement)
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Financial overview
Projection of each month (Revenue
by source and Opex and Capex by
vote)
Service delivery targets and
performance indicators for each
quarter (link to performance
agreements)
Projected cash flows and
associated impacts
Capital projects listed and broken
up by ward showing project name,
capital cost timed per month, and
planned start and completion dates
Operational document
Typical Provincial GDS indicators
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8% growth rate ( Gauteng)
Access to water and sanitation by 2010
Access to electricity by 2012
Tarring of roads by 2009
Formalisation of informal settlements by
2009
Eradication of identified existing informal
settlements by 2014,
Eradicate bucket systems 2006
Universal provision of free basic
services-GPG and LG
National KPA for municipalities
(MSA)
Key Performance Area
Institutional
Capacity and
Municipal
Transformation
Focuses on how municipalities have
performed in transforming their
institutional structure, and also focuses on
leadership and institutional development
that is critical for transformation in order
to enable the municipality to deliver
services effectively
Basic Service
Delivery and
Infrastructure
Assesses how municipalities have fared in
implementing Free Basic Service and how
municipalities are ensuring Infrastructure
Development.
National KPA for municipalities
(MSA)
Key Performance Area
Local
Economic
Development
Focuses on activities and programmes
developed to promote LED and thus
contributing to economic growth and job
creation and initiatives directed at poverty
alleviation
Financial
Viability and
Management
Focuses on financial viability of
municipalities and the ability and
effectiveness of municipalities to meet their
assigned responsibilities within their current
financial capabilities
Good
Governance
Focuses on the issues of good corporate
governance, public participation structures
and overall accountability
Monitoring and Reporting
Local
Municipal Growth and
Development
Strategies (long term)
Monitor
and measure outcomes
Mayoral Mid Term Report and
End of Term report
Integrated
Development Plans (5
National KPA)
Annual
Service Delivery and
Budget
Implementation Plan
Quarterly
Performance
Scorecards
Performance
report focussing on
inter alia on IDP and National
KPI
Vuna awards
reporting (MFMA)
reviews
Local level funding
Intergovernmental
transfers
(unconditional)
Local
Government Equitable Share
Other: health, housing
Conditional Grants
Municipal
Incentives
Urban
Other
Concessionary
Local level financing
(90%)
Property
Infrastructure Grant for basic
services
National Neighbourhood Partnership
Grant for urban development
development zone (user)
loans development
finance institutions – eg. DBSA
Donor funding
Rates
Income from infrastructure services
Municipal Bonds (larger metros)
Capital raising
Local level funding – key challenges
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Debt management (credit control)
Long term impact of loan raising
Credit ratings impacting the ability to raise funds on open
market (importance of clean audit reports from AG)
Other issues:
REDS: Electricity major revenue generator for
municipalities, REDS likely to impact negatively on this in
long term,
Regional Service Council (turnover levy on business)
levies, replacement options currently being debated.
Local Government equitable share review underway