KZN COGTA-DEMARCATION - KZN Development Planning

RESTRUCTURING PROCESS WORKSHOP
FOR MERGED AND SPLIT MUNICIPALITIES
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Introduction
Need for Restructuring:
 The need to strengthen institutional management by
merging municipalities
 The need to strengthen Local Government Sector and
build stability
 The need for strategic planning within restructured
municipalities
 To promote social cohesion
 Sustainable infrastructure development
 Good governance.
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Commitment
For the restructuring process to succeed, commitment is required from all
role players:
 Accounting Officers must take ownership of the process
 Accounting Officers must provide leadership to ensure the process is
implemented
 Heads of Departments must ensure monthly Task Teams meetings are
held
 Heads of Departments must ensure Task Team reports are tabled with
Technical CMC’s
 Heads of Departments must provide support and guidance to relevant
Task Teams
 District municipalities must play the co-ordinating role to ensure processes
are implemented
 Cogta to provide technical support at Task Team level.
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Adherence to Section 14(5) Notice
A commitment needs to be made by merging and split partners to adhere to
the Section 14(5) Notice:
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Appointment of staff
Disposal and acquisition of assets
Use of reserve capital
Asset management.
Sharing of staff and resources:
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Less than 14 months to dis-establishment
Concerted effort to be made to share staff
No new staff appointments to be made unless of critical nature
New programmes must be implemented for the new area of jurisdiction.
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 Each CMC must develop a Road Map setting out key
milestones, objectives, timeframes, budgetary
requirements and Responsible persons to manage the
process
 The Road Map to be approved by the CMC and
relevant Councils
 Road map to include a meeting schedule for the CMC’s
 Meeting schedule to form part of the official Council
meeting schedule of Committees of Council
 Technical CMC’s to meet monthly
 Task teams to provide monthly reports to Technical
CMC’s.
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Human Resource Issues
 Cogta has provided support in the form of external
service providers to draft new organograms
 Earnest request is made to relevant HOD’s to arrange
meetings with the service Provider to ensure timeous
completion of organograms
 Organograms must be approved urgently in order that
JD’s and job evaluation exercise can be undertaken
 Placement of staff cannot commence without
approved organogram
 Grading of new municipality has to be undertaken
• Union involvement is of vital importance.
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Administrative Matters
 By-laws and policies need to be rationalised and
adopted for the new municipality
 The necessary CMC resolutions for rationalisation
and implementation have to be taken
 Rates policies have to be drafted to apply to the
requirements of the new dispensation
 Tariff policy and by-laws need to be drafted and
approved
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New Section 14(5) Notice
The proposed new Section 14(5) Notice is being drafted to
deal with the following issues:
 Implementation of Rates by new municipality where both
have been disestablished (sections 32 and 33 of the MPRA)
 The transitional arrangement in sections 32 and 33 does
not cater for instances where two or more municipalities
are disestablished and then amalgamated.
 The transitional arrangement as contained in Section 32
and 33 of the MPRA Amendment Act should be applied
through a Section 14 Notice.
 Budget approval process
 IDP approval process
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Restructuring Grant
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An amount of R 39m has been approved by National Treasury for both KZN and
Gauteng Provinces for the 2015/16 financial year
Of this R3.25m has been approved per merging/split municipalities, excluding the
metro
A business plan needs to be provided per merger/split before 15/03/15 for this
R3.25m
Projects which have been identified for this funding/business plan include the
following:
- rationalisation of by-laws
- consolidation of IT/Financial systems
- valuation rolls
- IDP Process
- organograms and other HR related matters
- communication strategy
No provision has been made for office/Council Chamber buildings
As a result of the re-opening of the re-demarcation process, the FFC and National
Treasury are currently reviewing the financial assistance and criteria for funding to
affected municipalities
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Communication Strategy
 Each CMC has to develop a communication strategy to keep the
community informed of the process
 Mechanisms must be developed whereby communities can form
part of the restructuring process
 Communities must be afforded the opportunity to voice their
concerns
 The following mechanisms may be utilised:
- radio
- printed media
- ward committees
- CDW’s
- Amakhosi structures
- ratepayer organisations
- IDP process
- budget process
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Rapid Response Teams
 Municipal Rapid Response Teams must be
strengthened in the affected municipalities
 Service delivery protests and protests around the
restructuring must be identified early on, where
possible, which could affect the restructuring
process in the build up to the elections in 2016
 The Cogta Rapid Response Teams will assist
where needed
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Naming and Seat of new Municipality
 The process of naming the new municipality
has to be commenced with
 The seat of the new municipality has to be
identified based on sound economic and
financial principles
 The seat would also have an effect on the
organogram as satellite offices would of
necessity have to be determined
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Municipal Viability
The municipal Viability of the new municipality needs to be
determined.
 Financial viability refers to the fiscal state of the municipality
 Viability of governance focusses on general local government
conditions
 Community viability focusses on the demographic, social and
economic aspects of the community.
Challenges must be identified and addressed.
Factors to be determined in Financial Viability will be the following:
 The liquidity ratio
 External gearing ratio
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Factors of Viability of Governance
 Was the annual budget approved timeously
 Was the IDP reviewed annually
 When last was the budget related policies of the
municipality reviewed
 Does the municipality have an annual report
 Were the annual financial statements submitted
timeously
 What was the audit outcome
 Institutional stability
 Does the municipality have a long term Financial Plan
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Post Merger Support
 Factors that that would affect the post merger
have to be identified
 Critical challenges that would need support
should be identified so that timeous
interventions can be implemented.
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Thank you
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