REVISED STRATEGIC PLAN 2017-2022 ANNUAL PERFORMANCE …

www.salga.org.za

REVISED

STRATEGIC PLAN

2017-2022

ANNUAL

PERFORMANCE

PLAN 2020-2021

Portfolio Committee on COGTA

12 May 2020

www.salga.org.za

PRESENTATION OUTLINE

• Part 1 - Background: The mandate, vision, mission, values and evolution of SALGA.

• Part 2 – SALGA Strategic Plan: Overview of the SALGA planning, budgeting, reporting Cycle and 5 YearStrategy.

• Part 3 – Changes that impact on SALGA’s Strategy: Other factors that influence SALGA’s strategy andperformance plans.

• Part 4 – Baseline to 2020/21 APP: Highlights of outputs achieved through the implementation of the first 3 years of the SALGA 5YR Plan.

• Part 5 - SALGA’s Revised Strategy 2017-2022 and the 2020-2021 Annual Performance Plan: Overview of the organisational performance plan in line with the SALGA Conference resolution and the 2017 – 2022 strategic plan.

• Part 6 – Financing the Plan: An overview of the budget allocation for the 2020/2021 APP

• Part 7 – Possible Impact of COVID-19 on the 2020/21 APP: An overview of the potential impact of COVID-19 on the SALGA APP

2

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PART 1

BACKGROUND

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BACKGROUND: SALGA’S MANDATE

4

7

www.salga.org.za

VISION, MISSION & VALUES 6

VALUES

MISSIONVISION

To be an

Association of

municipalities that is

at the cutting-edge

of quality and

sustainable services

To be consultative, informed,

mandated, credible and

accountable to our

membership and to provide

value for money

Responsive: Being quick and flexible in

responding to member needs

Innovative: Exploring new ways of

doing things and providing members

with fresh and unconventional services

Dynamic: Being flexible

and adapting to change to

service members effectively

and efficiently

Excellence: Serving

members with pride and

excellence.

www.salga.org.za• 6

The SALGA ORGANISATIONAL EVOLUTION

6

2017 - 2022

2012 - 2017

2007 - 2012

2000 - 2007

1996 - 2000

Relevance & Meaningful ImpactHigh performance & good governance

translate into meaningful impact

Well Governed High performing organisation, consistently receiving

clean audits

Consolidation

Consolidation as unitary structure that plans, operates an

reports as one.

Coordination of Democratic Local GovernmentCoordinating the voice of a fragmented local government

SALGA Established & LG Law and Policy Development

Start of journey with 9 different provincial structures, and participation

in LG policy and regulation

SALGA’s focus and mission has and remains to be about building municipalities that should be:

Caring I Accountable I Responsive I Innovative I Participatory I Capable I Resilient I Viable I

Development Oriented I Service Delivery Oriented

8

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PART 2

SALGA STRATEGIC PLAN

8

Planning, budgeting and

reporting Cycle

Policy Development /

Environmental Analysis

Strategic Planning/

Annual Performance Plan

SALGA

Planning,

budgeting and

reporting

Implementation and

in-year reporting

End-year reportingPerformance planning

and budgeting

Identify desired impacts

Specify performance indicators

Set targets and allocate resources

Monitor and take corrective action

Assess and adjust

10

www.salga.org.za9

IMPACTS

OUTCOMES

OUTPUTS

INPUTS

ACTIVITIES

The developmental results of achieving

specific outcomes

The medium-term results for specific

beneficiaries that are the consequence

of achieving specific outputs

The final products, or goods and

services produced for delivery

The processes or actions that use a

range of inputs to produce the desired

outputs and ultimately outcomes

The resources that contribute to

the production and delivery of

outputs

What we use to do the work?

What we do?

What we produce or deliver?

What we wish to achieve?

What we aim to change?

Plan, budget,

implement and

monitor

Manage towards

achieving these

results

IMPACTS

OUTCOMES

OUTPUTS

INPUTS

ACTIVITIES

The developmental results of achieving

specific outcomes

The medium-term results for specific

beneficiaries that are the consequence

of achieving specific outputs

The final products, or goods and

services produced for delivery

The processes or actions that use a

range of inputs to produce the desired

outputs and ultimately outcomes

The resources that contribute to

the production and delivery of

outputs

What we use to do the work?

What we do?

What we produce or deliver?

What we wish to achieve?

What we aim to change?

Plan, budget,

implement and

monitor

Manage towards

achieving these

results

Local Government Sector Goals –

long term impact level results

SALGA results that contribute to

sector goals - strategic objectives

and priority programmes

Plan budget, implement and

monitor (delivery of

mandate)

LOGIC FRAMEWORK11

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SALGA’S ROLE IN INSPIRING

CONTINUITY AND CHANGE

• Focus on SALGA’s role as PROTECTOR to enforce

rights of LG robustly

12

• Constructively DISRUPT (in positive sense) where

the existing overall system (legislative, fiscal, policy,

institutional) makes it impossible for LG to deliver on

its mandate

• Emerged out of the 2016 national conference with 102 resolutions

DISRUPTOR

www.salga.org.za

Goal 01

Sustainable, Inclusive

Economic Growth

underpinned by

Spatial

Transformation

Goal 02

Good Governance &

Resilient Municipal

Institutions

Goal 03

Financial

Sustainability of

Local Government

and Fiscal Equity

GOALS13

www.salga.org.za

12

GOAL 2Good Governance &

Resilient Municipal

Institutions

GOAL 1Sustainable, Inclusive

Economic Growth and

Spatial Transformation

GOAL 3Financial Sustainability of LG

and Fiscal Equity

To support Regional

Economic Strategies

and effective Land Use

Management

approaches for

economies of scale and

social cohesion

To promote high

quality and reliable

Service Provision

and Infrastructure

Investment

To modernise

governance

systems and

processes

To strengthen

oversight and

accountability

To implement a

sustainable

Urban

Development

Programme

To promote

sound and

productive

labour relation

To

professionalise

Local

Government

To strengthen financial

management systems and

controls

To strengthen LG’s

role in Community

Development and

Social Cohesion

To support

innovative

revenue

enhancements

strategies for

local government

To develop and

support the

implementation of

financial strategies for

long term

sustainability and

viability of local

government

SALGA STRATEGY (2017 – 2022) 14

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PART 3

CHANGES THAT IMPACT ON SALGA’S

STRATEGY

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MEDIUM TERM STRATEGIC FRAMEWORK (MTSF)

MTSF is a high-level strategic

document to guide the 5 year

implementation and monitoring of the

NDP 2030

In line with electoral mandate identifies

the Priorities to be undertaken during

2019-2024 to put the country on a

positive trajectory towards the

achievement of the 2030 vision

It sets targets for implementation of the

priorities and interventions for the 5

year period, and states the Outcomes

and Indicators to be monitored

16

www.salga.org.za

MTSF Priorities for 2019-2024

The Seven Priorities derived from the Electoral Mandate + SONA:

Priority 1: Economic Transformation and Job Creation

Priority 2: Education, Skills and Health

Priority 3: Consolidating the Social Wage through Reliable and Quality

Basic Services

Priority 4: Spatial Integration, Human Settlements and Local Government

Priority 5: Social Cohesion and Safe Communities

Priority 6: A Capable, Ethical and Developmental State

Priority 7: A better Africa and World

17

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2019 – 2024 MTSF LOGIC MODEL

18

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PART 4

BASELINE TO THE 2020-2021

ANNUAL PERFORMANCE PLAN

www.salga.org.za

75

80

85

90

95

100

2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019

84

9698

100 100

93

98

84

9698

100 100

93

98

Performance over the last six years

SALGA's Quality Assured Annual Performance Percentage (%)

AGSA Audited Annual Performance Percentage (%)

25

www.salga.org.za

STATUS OF STRATEGY 2016 - 22 IMPLEMENTATION

2017/18 2018/19

Outcome 1

Sustainable, inclusive economic growth and

spatial transformation.1

2

3

4

Outcome 2

Good governance & resilient municipal

institutions

Outcome 3

Financial sustainability of LG and fiscal equity

Outcome 4

Effective and efficient administration

2019/20 2020/21 2021/22

?

?

?

?

15/16 30/31

14/1421/23

3/3

7/7

5/5

17/17

OVERALL PERFORMANCE 70 ?54/5558/61

34

27

4

5

3/3

2/2

37/39

10/11

22/23

www.salga.org.za

2017/18

HIGHLIGHTS OF PERFORMANCE

www.salga.org.za

GOAL 1: Sustainable, Inclusive Economic Growth Underpinned by


• SALGA launched the Small Town Regeneration Programme which provided support in the Karoo

region and the Bojanala municipality. A consultative and consensus building workshop on the STR-

IUDF alignment was held with COGTA to build an understanding on where the STR and regional

space economies approach fits within the broader IUDF.

SALGA concluded a research on Regional Economies and Categorization thereof. A consultation

process in a form of dialogues with stakeholders was convened aimed at drawing experience from

a wide range of experts in the field.

• After years of successful implementation of Water Services benchmarking, SALGA in partnership

with the Water Research Commission (WRC) has initiated the expansion of the benchmarking to

include waste management and electricity/energy services.

www.salga.org.za

GOAL 1: Sustainable, Inclusive Economic Growth Underpinned by


• SALGA developed a position paper on the Legislative Framework for Environmental

Management, which will assist LG to clarify the responsibilities with regards to environment

function.

• A policy position paper on Funding requirements for Environmental Performance was also

developed which aim to influence the fiscal regime to make provision for funding instruments for

environmental performance areas.

• SALGA has raised all systemic and structural challenges in the Electricity Reticulation Industry

through IGR platforms which led to a formation of the Inter-ministerial Task Team(IMTT).

• SALGA hosted the Energy Summit to have a wider conversation around the policies impeding the

operations of municipalities in the energy space.

• SALGA developed comments on the revised Accreditation and Assignment Framework which is

developed by the Department of Human Settlements (DHS). The revised framework will ensure

that processes of accreditation and assignment will contribute to better outcomes.

www.salga.org.za

GOAL 2: Good Governance & Resilient Municipal Institutions

• SALGA provided direct support to municipalities on governance and intergovernmental relations.

• Conducted MPACs training on Roles and Responsibilities for 66 municipalities.

• Through the SALGA Centre for Leadership and Governance (SCLG) 4743 councilors and

senior municipal officials benefited in the training programmes as follows:

o 164 participants in the Senior Managers Induction Programme (SMIP),

o 131 participants in the Leadership in Municipal Governance (LMG) Programme,

o 480 participants in the Municipal Leaders Media and Stakeholder Engagement

Programme (MSEP),

o 2933 participants incl Traditional Leaders in the Portfolio Based Councilor Induction

Programme

o 279 participants in the Councilor Induction Programme (CIP)

o 16 participants in the Accredited Performance Management Support Programme.

o “Train the Trainer” session for MPACs on Roles and Responsibilities of Councilors, Political

Structures and Officials.

www.salga.org.za

GOAL 2: Good Governance & Resilient Municipal Institutions

• Developed SALGA Collective Bargaining Strategy for 2018/19;

• Concluded the process of signing the collective agreement for

implementation by municipalities;

• Representations provided to member municipalities across provinces on labour

related matters as follows:

o 107 disciplinary hearings,

o 82 conciliations and

o 183 arbitrations.

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GOAL 3: Financial Sustainability of Local Government & Greater

Fiscal Equity

• Municipal debt was profiled and proposals on how to deal with the historical debt owed to

municipalities was lobbied for in Parliament to the Select Committee and Presidential

Coordinating Committee (PCC).

• Escalated the matter of Eskom debt to PCC level and this has resulted in the following progress:

• Eskom concessions on reduced interest rates; tariffs and payment period of bulk

accounts from 15 to 30 days – collectively amounting to an approximately R1.7billion per

annum saving for municipalities;;

• An Inter-Ministerial Task Team including SALGA appointed find urgent solutions; and

• A high level Technical Advisory Panel appointed in May 2018 to look at options for the state

in resolving this impasse.

www.salga.org.za

GOAL 3: Financial Sustainability of Local Government & Greater

Fiscal Equity

• SALGA lobbied for amendment of MFMA and Systems act:

Lobby for appropriate licences for CFOs and MMs from an independent organisation;

Implement a de/merit system based on audit outcomes; and

Final sanction must result in the professional individual being debarred from working in Local

Government.

• Support was provided to 43 municipalities on Municipal Audit Support Programme, of the 43

municipalities supported 18 were in the red zone. 7 municipalities supported progressed in terms

of their audit outcomes.

www.salga.org.za

2018/19


www.salga.org.za

Outcome 1: Sustainable, inclusive economic growth and spatial

transformation

• The SALGA Strategy and Implementation model for 5th Utility was developed together with the

Smart Cities framework.

• Developed inputs and represented the local government position on the constitutional

authority for electricity reticulation in the PCC

• Developed inputs on the IRP & submitted to the Department of Energy.

• Successfully lobbied the Minister of Water and Sanitation to withdraw the proposed Water and

Sanitation Bill. Subsequently, SALGA developed a Local Government Position on Water

legislation review and water management institutions.

www.salga.org.za

Outcome 1: Sustainable, inclusive economic growth and spatial

transformation

• Developed a revised Environmental Costing and Finance Policy Position paper.

• SALGA convened Climate Change Compact Conference for Mayors and the Green Energy

Symposium to present the Environmental Costing and Finance Policy Position paper.

• 13 municipalities in Chris Hani and O R Tambo District Municipalities were assisted with the

development of By-Laws.

• Through the rural densification framework, piloted with the Bushbuckridge Local Municipality.

Over and above the pilot, the rural densification dialogue was also held in the Eastern Cape and

Limpopo

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Outcome 2: Good governance & resilient municipal institutions

ProvinceDisciplinary

HearingsConciliations Arbitrations

Eastern Cape 5 - -

Free State 4 - 4

Gauteng - - 3

KZN - 115 97

Limpopo 6 3 7

Mpumalanga 20 - 17

Northern Cape 18 7 18

North West 2 4 7

Western Cape 24 8 96

Total 79 137 249

Grand total 465

• Through the SALGA Centre for Leadership

and Governance (SCLG) 3979 councillors

and senior municipal officials benefited in the

training programmes

• 38 municipalities received support on

Performance Management Systems

• 454 cases were represented on labour

related matters

• Disciplinary hearings decreased from 107 in

2017/18 to 79 in 2018/19; Conciliations

increased from 82 in 2017/18 to 126 in

2018/19 and

• Arbitrations decreased from 183 in 2017/18

to 249 in 2018/19 financial year.

www.salga.org.za

Outcome 3: Financial sustainability of Local Government and fiscal equity

• SALGA conducted research for the review of fiscal reforms. The research's

focus was on the following:

o Local Government Equitable Share (LGES) re-modelling to reflect cost of

services study;

o The impact of legislation/cost of reforms on LG; and

o The policy and regulatory framework.

• The final report regarding the quantum of the LGES, its' remodelling to determine

the adequacy thereof and potential recommendations to influence the broader

fiscal architecture was developed.

www.salga.org.za

Outcome 3: Financial sustainability of Local Government and fiscal equity

• Participated at the Technical Budget Forum, Winter Budget Forum and Spring Budget,

to lobby for the review of the fiscal architecture/regime towards a more equitable

allocation for municipalities.

• Participated in the National Inter Governmental Task Team (NIGTT) for debts

owed to municipalities by Organs of State.

• Collaborated with SARS on systems data-sharing project.

• SALGA also embarked on a research project which looked at the revenue losses

related to Eskom reticulation in municipal distribution areas which should

impact the LGES, the establishment of a district collection agency and the repeal of

the historical household debt.

• Recommendations on the changes to the Municipal Systems Act, Section 10 were

also developed and lobbied at the Budget Forum.

www.salga.org.za

2019/20


www.salga.org.za

OUTCOMES 2: Good Governance & Resilient Municipal Institutions

• Actively participated in the processing of the Systems Act Amendment Bill and

the Structures Act Amendment Bill;

• Lobbied for local government concerns to be addressed in the review of the

Municipal Cost Containment Regulations;

• Provided advisory support to municipalities pertaining to the implications of the

Constitutional Court Order Declaring the Municipal Systems Amendment

Act, 2011 Invalid;

• Hosted the single biggest gathering of local government leaders from across the

globe: the UCLG World Congress.

www.salga.org.za

Outcomes 2

To professionalise Local Government – 2019/2020

56 50 50 56

337

541

0

200

400

600

MunicipalHealth ServiceSummit 2019

Health RiskWaste

ManagementTool

Mhs And EhForums

PesticidesTraining

2nd Annual LGTalent

ManagementSeminar

3rd Annual LGPMS Seminar

Health Professions Council of South Africa South African Board of PeoplePractices (SABPP)

TOTAL NUMBER OF COUNCILLORS & OFFICIALS WHO ATTENDED CONTINOUS DEVELOPMENT PROGRAMMES

Councillors, 3842

Officials, 4625

Councillors

Officials

0 1000 2000 3000 4000 5000

CAPACITY BUILDING PROGRAMMES BENEFICIARIES 2019/2020

www.salga.org.za

PART 5

SALGA’S REVISED STRATEGY 2017-2022

AND THE 2020-2021

ANNUAL PERFORMANCE PLAN

www.salga.org.za

Key interlinking challenges facing

municipalities and the local government sector

3737

Capabilities, Governance &

LeadershipWeakening municipal governance and

leadership characterised by poor oversight,

limited consequence management,

instability at senior management levels,

and a lack of skills undermine service

delivery and transformation at the local

sphere

Spatial Transformation &

InclusionSpatial transformation and inclusive

communities undermined by depressed

economic conditions, increasing impact of

climate change, regressing social cohesion,

poor coordination in planning, access to

land, bulk services, limited decentralisation

in housing delivery, transport challenges

and safety and security

Fiscal Policy & Financial

Management

Increase of municipalities in financial distress

due to many factors like: increase in the cost

of services (tariffs), decrease in revenue

collection, supply chain management

inefficiencies, and irregular, fruitless and

wasteful expenditure , low revenue bases,

high levels of unemployment & poverty.

Service Delivery &

InfrastructureIncrease in coverage of basic services but

under pressure from widening funding gap

for infrastructure, poor life cycle asset

management, maintenance and effective

project implementation, as well as lack of

technical capabilities.

20

www.salga.org.za

2020 DORB ALLOCATIONS vs

CONSTITUTIONAL FUNCTIONS

• Although LG is responsible for 46% of the constitutional functions, it

receives the lowest allocation of the national expenditure allocation at

9%

• The scenario requires national fiscus to contribute a significant proportion for

the provision of constitutional functions linked to the LG

VS

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POWERS & FUNCTIONS /UNFUNDED

MANDATES

Source: FFC Submission for the 2012/13 DoR – Technical Report

• LG bears significant costs for the delivery of unfunded and underfunded mandates;

• Municipalities perform functions on behalf of provinces;

• In some instances, the Service Level Agreements (SLAs) have not been signed by provincial

departments;

• Some allocations from the province are not transferred on time according to the agreed payment

schedule;

• Municipalities clearly perform functions on behalf of provinces without assigning full expenditure to the

functions.

• This has implications for the equitable sharing of nationally collected revenue and the delivery of services.

www.salga.org.za

POWERS & FUNCTIONS /UNFUNDED

MANDATES

• Municipalities are at the coal

face of service delivery and

often forced to deliver

unfunded mandates while

revenue instruments stay

with Provinces

• This further compromises the

financial viability of

municipalities

• Therefore, the revision of

existing Powers and

Functions is imperative

towards creating an ideal

municipal functionality

model after which funding

should follow

• Transfers for assigned

functions should not be

dependent on the Minister

or MEC’s discretion but

directly transferred to

municipalities

Provincial Grants per DoRB

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IMPACT: A RESPONSIVE, ACCOUNTABLE, EFFECTIVE,

EFFICIENT AND DEVELOPMENTAL LOCAL GOVERNMENT

OUTCOME 2

Good governance

& resilient

municipal institutions

OUTCOME 3

Financial

sustainability of

local government &

greater fiscal

equity

OUTCOME 1

Municipalities with

sustainable,

inclusive economic

growth

underpinned by

spatial

transformation

1 2 3

OUTCOME 4

Efficient and

effective

administration

4

21

www.salga.org.za

Number of outputs per outcome

Outcome 4

27

34 5

4

Outcome 1

Outc

om

e 2

Outc

om

e 3

Outcome one, two and

three are externally

focused and directly

provide support to

municipalities.

Outcome four is

internally focused and

strengthens the internal

capacity to support

municipalities

Total outcomes = 70

22

www.salga.org.za

OUTCOME

STATEMENT

To foster integrated and

sustainable urban

development and

management; regional

economic growth

inclusive of rural

development and bring

about social cohesion

OUTCOME 1

Municipalities with

sustainable, inclusive

economic growth

underpinned by

spatial transformation

1

34 OUTPUTS = 42 TARGETS

MTSF 2019-24 PRIORITIES

Priority 1: Economic Transformation and Job

Creation

Priority 2: Education, Skills and Health

Priority 3: Consolidating the Social Wage

through Reliable and Quality Basic Services

Priority 4: Spatial Integration, Human

Settlements and Local Government

Priority 5: Social Cohesion and Safe

Communities

Priority 6: A Capable, Ethical and

Developmental State

23

www.salga.org.za

OUTCOME STATEMENT

Investing in good governance and

modernization of government

approaches, strengthening

community interface mechanisms,

sound labor relations and

professionalization

27 OUTPUTS – 33 TARGETS

OUTCOME 2

Good

governance &

resilient

municipal institutions

2

MTSF 2019-24

PRIORITIES

Priority 6: A Capable, Ethical

and Developmental State

24

Preventative controls – the ultimate deterrent

19

MFMA

ASSURANCE PROVIDED BY MANAGEMENT / LEADERSHIP

Senior management

Municipal managers

Mayors

INTERNAL INDEPENDENT ASSURANCE AND OVERSIGHT

Internal audit units

Audit committees

Coordinating/ monitoring departments

EXTERNAL INDEPENDENT ASSURANCE AND OVERSIGHT

Municipal councils

Municipal public accounts committees

Portfolio committees on local government

Preventative controls cannot work effectively if allassurance providers are not playing their role

25%

5% 49%

7% 58%

50% 25%

35%

46%

27%

26%

44%

41%

47%

56%

32%

27%

4% 66% 30%

1%

2%

202018-19

31% 50% 18%

25% 53% 20%

www.salga.org.za

OUTCOME STATEMENT

Improvement of the financial health of

municipalities through:

o A revised Local Government fiscal

framework

o Effective revenue management and

enhancement

o Access to alternative/innovative

funding sources

o Sound financial management


OUTCOME 3

Financial

sustainability of

local government

& greater fiscal

equity

3

MTSF 2019-24

PRIORITIES

Priority 6: A Capable,

Ethical and Developmental

State

25

MFMA

Financial health of municipalities

Lim

po

po

Mp

um

alan

ga

Kw

aZu

lu-N

atal

Fre

eS

tate

No

rth

Wes

t

Eas

tern

Cap

e

No

rth

ern

Cap

e

Wes

tern

Cap

e

Gau

ten

g

2018-19 2017-18 2018-19 2017-18

2018-19 2017-18

2018-19 2017-18

2018-19 2017-18

2018-19 2017-18

2018-19 2017-18

2018-19 2017-18

2018-19 2017-18

12% 23%

44%33%

44% 44%

8% 13%

79% 62%

13% 25%

28% 17%

17%50%

55%33%

15% 23%

68% 56%

17% 21%

13% 13%

87% 87%

6% 6%12% 25%

82%69%

11% 8%

26% 23%

63% 69%

72% 83%

21%14%

7% 3%

19% 24%

43%41%

38% 35%

13Good Of concern Intervention required 2018-19

14

Local government finance – the stark reality

Incomestatement

Balancesheet

Re

ve

nu

eEx

pe

nd

itu

reN

et

resu

lt

The financial statements of 229 completed audits shows:

• The total revenue (excluding equitable share and conditional grants) was R226 billion, but not all is

recoverable (see balance sheet)

• National government financed the municipalities through equitable share grants of R55 billion and

conditional grants of R43 billion

• Salary and wages (including councillors remuneration) was R91,30 billion – represents 40% of own revenue and 166% of equitable share

• Goods and services are procured, but the suppliers are not paid – the average creditors payment

period was 180 days

• R2,07 billion of expenditure was fruitless and wasteful

• R11,98 billion of expenditure was unauthorised

• The value of infrastructure assets that municipalities should maintain and safeguard was R317,68 billion but the expenditure on maintenance was only R8,5 billion

• 34% of municipalities ended the year in a deficit (expenditure was more than revenue)

• The total deficit in local government was R6,29 billion

• The total creditors at year - end was R53,52 billion. The cash available at year - end was R43,20 billion

• The creditors are greater than available cash at year end at 51% of municipalities

• The next year’s budget will pay for expenditure of the previous year(s) – at 26% municipalities it will be more

than half of their budgets

• An average of 59% of municipal debtors are not recoverable. At 55 municipalities more than 80% cannot

be recovered – debt collection at 99 municipalities was more than 90 days

72 (31%) municipalities are in a vulnerable financial position

The financial statements of 35 (15%) municipalities are not reliable enough for financial analysis to determine

their financial position

15

Eskom and Water Boards outstanding debts – 229 municipalities

Eskom outstanding debt – R billion

Water boards outstanding debt – R billion

Highest contributors – R billion

Highest contributors – R billion

Total amounts owed (as at June 2019)

31 - 120 days Over 120 days Total amount in arrears (i.e. 31 days and over)

R18,91 R2,29 R9,02 R11,31

Total amounts owed (as at June 2019)

31 - 120 days Over 120 days Total amount in arrears(i.e. 31 days and over)

R9,74 R0,86 R5,38 R6,24

Municipality Total amounts in arrears (as at June 2019)

31 - 120 days Over 120 days

Emalahleni (MP) R2,77 R0,33 R2,44

Ngwathe (FS) R1,04 R0,07 R0,97

Lekwa (MP) R0,80 R0,12 R0,68

Municipality Total amounts in arrears (as at June 2019)

31 - 120 days Over 120 days

Mopani (LP) R0,93 R0,09 R0,84

Vhembe (LP) R0,83 R0,02 R0,81

Msukaligwa (MP) R0,68 R0,14 R0,54

www.salga.org.za

OUTCOME

STATEMENT

To foster a sound financial

management of SALGA

processes and procedures


OUTCOME 4

Efficient and

effective

administration

4

MTSF 2019-24

PRIORITIES

Priority 6: A Capable, Ethical

and Developmental State

26

www.salga.org.za

MANDATE

ADVOCATE, LOBBY & REPRESENT

www.salga.org.za

42

OUTPUTS OUTPUT INDICATOR Target

2020 - 2021

Policy guide on the role of LG in

response to HIVAIDS for

municipalities

NHC approval of a policy guide on

the role of LG response to HIV/AIDS

and roles and responsibilities

clarified

Policy guide on the role of LG in response to HIVAIDS

developed and submitted to National Health Council

(NHC) by 31 March 2021

Assessment of the SALGA

programmes and processes to

integrate mainstreaming of

vulnerable groups

Number of organisational policies

reviewed and updated

SALGA policies reviewed to integrate issues

vulnerable groups and mainstreaming strategy

developed by 31 March 2021

Policy guide on the role of Local

Government in the provision of

services on child care facilities

Clarifying the role of Local

Government in the provision of

services on child care facilities

Lobby the Department of Social Development to

create a platform to engage on local government

related matters by 31 March 2021

Policy guide on the role of local government in

provision of services on child care facilities

developed, consulted with municipalities and

submitted to Minmec by 31 March 2021

Policy guide on the role of Local

Government in Public Safety


Government in Public Safety

Policy guide on public safety developed and

submitted to Minmec by 31 March 2021

28

www.salga.org.za

42OUTPUTS OUTPUT INDICATOR Target

2020 - 2021

A municipal strategic

framework on devolution of

functions toward achieving

integrated public transport and

the new urban agenda


Government on the devolution of

transport function

Municipal strategic framework developed on

devolution of transport function in Municipalities by 31

March 2021

Policy guide on the role of

Local Government in Sport

Development developed


Government in Sport Development

Policy guide on the role of local government in sport

development is developed and submitted to Minmec

by 31 March 2021

SALGA position paper on the

use land for Public good in line

with Municipal IDPs and SDFs.

Relevant department lobbied on the

use of land for Public good in line with

Municipal IDPs and SDFs

SALGA position paper on the use of land for Public

good in line with municipal IDPs and SDF developed

and submitted to MINMEC by 31 March 2021.

SALGA position on an enabling

legal, policy and fiscal

framework for housing

accreditation

Relevant stakeholders lobbied on the

enabling legal, policy and fiscal

framework for housing accreditation

SALGA position on an enabling legal, policy and fiscal

framework for housing accreditation developed by 31

March 2021

29

www.salga.org.za


2020 - 2021

SALGA position on social

housing & backyard rental

Relevant stakeholders lobbied on

social housing & backyard rental


SALGA position on social housing & backyard rental


2018 SALGA Energy Summit

outcomes implemented

2018 SALGA Energy Summit

Outcomes Implemented

Energy Reform Proposals Developed by 31 March 2021

Inputs for Redesign of Energy Policy Framework


Procedure for Small Scale Embedded Generation


Strategy to operationalise

IMTT and Cabinet Decision

on Service Delivery

Agreement

IMTT and cabinet decisions

implemented

Framework of the Service Delivery Agreement

developed by 31 March 2021.

Legal Risks for local government implementation of the

Service Delivery Agreement compiled by 31 March 2021

Eskom Risk Matrix on Service Delivery Agreement

assessed and legal opinion developed by 31 march

2021

30

www.salga.org.za


2020 - 2021

Framework developed to direct

support and monitor

municipalities to execute their

executive obligations

National and provincial government

must support and strengthen the

capacity of municipalities to manage

their own affairs, to exercise their

powers and to perform their functions

A study to evaluate the process, application,

successes and challenges imposed by section 139

interventions conducted by 31 March 2021

A study to evaluation the impact of the demarcation

processes to municipalities conducted by 31 March

2021

Develop, share and implement best practises based

on the 3 pilots launched on the implementation of the

District Development model by 31 March 2021

Structured SALGA

representation in IGR and

Parliamentary structures at both

provincial and national level

The voice of Local Government is

heard in the IGR and Parliamentary

structures

Participate and represent local government in the IGR

and Parliamentary foras by 31 March 2021

SALGA 5th Utility (Broadband

Infrastructure and Services)

Capacity Building and Training

Workshops conducted

Planned and Facilitated SALGA 5TH

Utility (Broadband Infrastructure and

Services) Capacity Building and

Training Workshops

3 Planned and Facilitated SALGA 5TH Utility

(Broadband Infrastructure and Services) Capacity

Building and Training Workshops by 31 March 2021

31

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42


2020 - 2021

SALGA position on the

division of revenue allocation

for Local Government

Lobby and advocated for the review

of equitable share allocation for

local government

SALGA position on the review of the equitable

share allocation for local government developed by

31 March 2021.

Position paper on sustainable financing of rural

development developed by 31 March 2021

National Revenue

Management Programme

National Revenue Management

Programme implemented at

selected municipalities

National Revenue Management Programme

developed and implemented by 31 March 2021

32

www.salga.org.za

MANDATE

EMPLOYER BODY

www.salga.org.za


2020 – 2021

SALGA position documents f or

the multi-year salary and wage

collective agreement developed

Multi-Year Salary and Wage

Collective agreement negotiated

SALGA Collective Bargaining Strategy Approved

and Negotiations on Salaries and Wages facilitated

by 31 March 2021

Collective Agreement on pension

fund restructuring finalised and

wage curve collective agreement

negotiated.

The collective agreement on pension

fund restructuring is implemented in

municipalities

Facilitate the conclusion of negotiations on the

Pension Fund Restructuring and the Wage Curve by

31 March 2021.

Municipalities represented and

supported on labour related

matters

Number of municipalities

represented and supported on

labour related matters

Municipalities represented on labour related matters

(Advice, Conciliations, Mediations and Arbitrations

as and when required) and Finalize Training of

Trainers for Local Labour Forum (LLF) Training to

Municipal Employer delegates by 31 March 2021.

TASK Job Evaluation

implemented in municipalities

Job evaluation units and provincial

audit committee capacitated

Coordinate the Implementation of TASK Job

Evaluation in Municipalities by 31 March 2021.

Feasibility Study report for

SALGA proposal to provide

Compensation Benefits to

municipalities

Mandated compensation benefit

process from municipalities

Secure approval of the NEC to acquire the licence to

provide compensation benefit by 31 March 2021

34

www.salga.org.za

MANDATE

CAPACITY BUILDING

www.salga.org.za


2020 – 2021

Assessment report on the

Performance of Disaster Risk

Management, Fire and Emergency

Services readiness in

municipalities

Improved municipal response

strategies on Disaster Risk

Management, Fire and Emergency

Services

Assessment study to reflect on municipal state of

performance of fire and emergency services to

identify areas of intervention conducted by 31 March

2021

Municipal workforce well

capacitated with performance

management capabilities

Number of municipal workforce

capacitated with performance

management capabilities

Roll out Municipal Performance Management

Training Programme by 31 March 2021

Municipal Councillors and

Officials well informed and

knowledgeable on performance

management

Number of municipal Councillors

and Officials informed and

knowledgeable on performance

management

Convene the 4th Annual Local Government

Performance Management Seminar by 31 March

2021

Institutionalise the integrated

Capacity building implementation

Plans

Number of capacity building

programmes implemented

A consolidated Integrated Capacity Building

Implementation Plan by 31 March 2021

Institutionalise the e-learning

blueprint

Number of blended capacity building

programmes rolled out

Implement the eLearning blueprint/strategy for local

government by 31 March 2021

36

www.salga.org.za

MANDATE

SUPPORT AND ADVICE

www.salga.org.za


2020 – 2021

Assessment report on work done

by municipalities to mainstream

issues of vulnerable groups

Assessment tool to monitor the

mainstreaming inclusion of

vulnerable groups

Assessment study on the work done by

municipalities to mainstream issues of vulnerable

groups by 31 March 2021

Status quo report on Local

Government response to Poverty

alleviation

Status quo on LG response to

Poverty alleviation

An assessment of the LG response to poverty

alleviation developed together with the Plan of

Action by 31 March 2021

Coordinate and Implement the

SALGA Women's Commission

Programme of Actions

Gender mainstreaming and women

empowerment

Implementation of the SWC Resolutions and

Programme of Action by 31 March 2021

Differentiated support programme

for effective SPLUM in

municipalities (SPLUMA

compliance, implementation of

IDP reviews and localization of

SDFs)

Improved municipal planning and

land use management in

municipalities

Differentiated support provided to municipalities on

SPLUM by 31 March 2021

SALGA Comprehensive Rural

Development Programme

Number of municipalities supported

on implement Rural Development

Programme. (e.g. Agriculture, Land,

Infrastructure Delivery, Spatial

Planning)

Lobby intergovernmentally for Rural Development

programmes to be implement through and in

partnership with municipalities by 31 March 2021

38

www.salga.org.za


2020 – 2021

Selected municipalities supported

to develop land acquisition and

disposal strategies and to

conduct land audit


to develop land acquisition and

disposal strategies and to conduct

land audit

Municipal land audits conducted in 2 Metros and 20

local municipalities by 31 March 2021.

Status Report on the

implementation of the

Environmental Management

Protocols

Devolution and Funding Framework

for devolving the environmental

function to municipalities adopted

Facilitated engagements with provincial department

and municipalities to implement the Environmental

Management Protocols by 31 March 2021

Sector support programme to

improve municipal compliance to

legislative framework for

environmental functional areas

(biodiversity, air quality and

coastal management)

Improved municipal compliance to

legislative framework for

environmental functional areas

Sector Support programme to improve municipal

compliance to legislative framework for

environmental functional areas (biodiversity, air

quality and coastal management) is developed and

implemented by 31 March 2021

A differentiated Climate Change

response programme

Improved municipal response

strategies on Climate Change

Differentiated Climate Change Response

programme developed and implemented for different

categories of municipalities by 31 March 2021

Municipalities supported to

improve waste management

services


to perform their authority function on

waste management

Identified municipalities supported to perform their

authority function (i.e. bylaws, Integrated Waste

Management Plan, etc.) by 31 March 2021

39

www.salga.org.za


2020 – 2021

Municipalities supported on water

services

Municipalities have access to

innovative water and sanitation

technology solutions by March 2021

Identified municipalities exposed to new innovative

water and sanitation solutions and management by

31 March 2021

Regional economic development

and small town sustainability

programme implemented

Number of the STR programme

with regional economic approach in

selected regions/municipalities

STR programme implemented in two regions and

selected municipalities by 31 March 2021

Municipal employment promotion

capability supported

Number of municipalities engaged to

support the promotion of

employment initiatives by March

2021

Engage targeted municipalities to improve their

employment promotions actions, using existing

levers and tools by 31 March 2021

Roll out the Consequences &

Accountability Framework to

municipalities.

Improved municipal governance Convene workshops in all provinces to roll out the

Consequences & Accountability framework by 31

March 2021

Municipalities support on

governance related matters raised

in the AGSA municipal Audit

Outcome Report


on governance related matters

5 Municipalities per province supported on

governance related matters by 31 March 2021

40

www.salga.org.za


2020 – 2021

Framework developed to direct support

and monitor municipalities to execute

their executive obligations

National and provincial government must

support and strengthen the capacity of

municipalities to manage their own

affairs, to exercise their powers and to

perform their functions

Lobby and advocate for the inclusion of local government

support processes and requirements in the development and

processing of the Municipal Intergovernmental Support,

Monitoring and Interventions Bill by 31 March 2021

Innovative solutions and programmes

provided to municipalities

Innovative solutions and programmes for

municipalities

Provide support to municipalities on innovation solutions and

programmes by 31 March 2021

SALGA ICT Capability Assessments

conducted based on the SALGA ICT

Capability (Governance and Service

Management) Maturity Assessment

Model

SALGA ICT Capability (Governance and

Service Management) Maturity Model

implemented

50 Municipalities assessed on the SALGA ICT Capability

Maturity Model by 31 March 2021

SALGA Smart Cities Development

Framework and Implementation Model

implemented in Municipalities

Piloted implementation of SALGA Smart

Cities Development Framework and

Implementation Model in Municipalities

Pilot implementation in one municipality on the SALGA's

Smart Cities Development Framework and Implementation

Model by 31 March 2021

Municipalities with functional and

effective performance management

systems

Number of municipalities with functional

and effective performance management

systems

Implement customised performance management support

interventions for selected municipalities by 31 March 2021

41

www.salga.org.za

42


2020 – 2021

Implementation of the

Professionalization Framework

Local government is

professionalised

Pillars of the professionalization framework

programitised and implemented by 31 March 2021

A programme for strengthened

oversight and accountable

leadership practices.

Number of support initiatives

developed and support provided to

municipalities through Municipal

Audit Support Programme

10 % Reduction in the number of significant audit

findings from the supported municipalities by 31

March 2021

Approaches towards innovative

financing instruments

Innovative Infrastructure financing

instruments and processes

identified.

Infrastructure Financing Instruments facilitated for

municipalities by 31 March 2021

Conduct an assessment to identify policy and

regulatory proposals to address the institutional

barriers to green innovative financing options by 31

March 2021

An infrastructure grants support

programme based on the MIIF

conference resolutions

Improved municipal infrastructure

grants spending for municipalities

Municipalities supported in improving their

infrastructure grant spending by 31 March 2021

42

www.salga.org.za

MANDATE

STRATEGIC PROFILING

www.salga.org.za

42


2020 – 2021

Spatial transformation barometer

for selected cities and towns

Spatial transformation is monitored

in municipalities

Spatial Transformation Barometer for selected cities

and town develop and published the by 31 March

2021.

Investment tools developed to

support municipal investment

growth including green

infrastructure

Municipal investment attraction tools

developed

Develop municipal investment attraction guidelines

by 31 March 2021

Local Government Data

Intelligence Solution developed.

Easy access to local governance

data is provided to Local

Government.

Upgrade Data Intelligence applications (Municipal

Barometer and SALGA Mobi) by 31 March 2021.

Municipal Socio-economic

Profiles Generated.

Information and insight for improved

municipal decision making

processes provided.

Conduct data analysis, generate and disseminate

information outputs by 31 March 2021

Local Government Risk Profile

Solution

Local Government Risk is mitigated

and managed.

Local Government Risk Profile Roadmap

Framework implemented by March 2021.

Innovative solutions and

programmes provided to

municipalities

Innovative solutions and

programmes for municipalities

Develop, package and publish one (1) SALGA

Innovation Publication by 31 March 2021

44

www.salga.org.za

42


2020 – 2021

SALGA Municipal Awards for

local government implemented

Well implemented and managed

SALGA Municipal Awards for local

government by March 2021

Implementation of the SALGA Municipal Awards by

31 March 2021

To provide and Effective and

Efficient Administration Support

Service for SALGA programme

delivery

Unqualified audit opinion for the

financial year ending 31 March 2021

100% compliance to PFMA requirements for public

entities by 31 March 2021

100% compliance to SALGA policies and

procedures contributing to an effective and efficient

administration by 31 March 2021

Outcome reports on

implementation of partnership

programmes with donor

communities

Partnership agreements

implemented in municipalities

90% - 100% implementation of partnership

agreements with donor communities by 31 March

2021

Awareness of the progress made

by municipalities in executing

their constitutional mandates

Structured Profiling of local

government

Local Government profiled by 31 March 2021

45

www.salga.org.za

MANDATE

KNOWLEDGE AND INFORMATION

SHARING

www.salga.org.za


2020 – 2021

Assessment report on primary health

care services study

Evidence based policy decision on

institutional arrangement for Primary

Health Care Service delivery

Assessment study on Primary Health Care Services delivery

conducted by 31 March 2021

Assessment of cost implications of

providing municipal environmental

health services at a required standard

Evidence based policy decision on

resources allocation for the provision of

municipal environmental health services.

Assessment study on provision of municipal environmental

health services conducted by 31 March 2021.

Assessment report on the state of By-

Law enforcement in Municipalities

Effective mechanism of enforcing

municipal By-Laws

An assessment study on the state of By-Law enforcement in

Municipalities conducted by 31 March 2021

Assessment report on the existing

arrangement in municipalities for

protection of municipal infrastructure

and assets

Effective mechanism of ensuring effective

protection of municipal infrastructure and

assets.

An assessment on the existing arrangement in municipalities

for protection of municipal infrastructure and assets


A comprehensive report on Municipal

infrastructure. (Transport, Roads, and

Storm water)

The state of municipal Transport, Roads

and Storm water Infrastructure packaged

Research conducted on the state of municipal transports,

roads, and storm water infrastructure by 31 March 2021

Research report on Local government

grant funding for land needs

Lobby for funding mechanisms to be

established for municipalities to respond

to land needs

Research conducted on Local Government grant funding for

municipal land needs by 31 March 2021.

47

www.salga.org.za

42OUTPUTS OUTPUT INDICATOR Target 2020 – 2021

Municipalities supported to improve

waste management services

Stakeholders engagements on waste

management function in municipalities

Relevant stakeholders engaged on

1) The need for municipalities (especially rural ones) to use

MIG to fund waste specialized equipment by 31 March 2021

2) The mechanisms for municipalities to receive a share of

producer levy through implementation of Extended Producer

Responsibility (EPR) by 31 March 2021

Municipalities supported on water

services

Dept. of Water and Sanitation lobbied on

the proposed legislative changes by

March 2021

Proposal identifying legislative gaps is developed and

submitted to Department of Water and Sanitation and related

inter-governmental structures submitted by 31 March 2021

Economic Master Planning Framework One municipality piloted on Economic

Master Planning Framework

Develop an Economic Master plan Framework and pilot in

one municipality by 31 March 2021

Dialogue conducted on public

participation and ICT Innovations

Awareness created in municipalities on

ICT innovations and public participation

Convene 1 National Dialogue on Public Participation & ICT

Innovations by 31 March 2021

Local government knowledge products

produced

Informed, knowledgeable and innovative

local government sector

Development, digitisation and dissemination 08 of knowledge

products by March 2021

SALGA Knowledge Hub managed and update with relevant

content by 31 March 2021

Research aligned to the SALGA

organisational strategy and priorities

conducted

Research Generating & Dissemination

platforms created

Produce relevant and high-quality research products in line

with SALGA's Research Strategy by 31 March 2021

Human Resource Management Strategy Improved work environment that enhances

high performance

Human Resource Management Strategy developed and

approved by 31 March 2021

48

www.salga.org.za

PART 6

FINANCING THE PLAN

www.salga.org.za

50

BUDGET PARAMETERS

www.salga.org.za

STATEMENT OF FINANCIAL

PERFORMANCE

51

www.salga.org.za

REVENUE DISTRIBUTION 2020/21

52

www.salga.org.za

STATEMENT OF FINANCIAL POSITION

55

www.salga.org.za

PART 7

IMPACT OF COVID-19

ON APP 2020/21

www.salga.org.za

COVID-19 DIRECTIVES TO MUNICIPALITIES

TO CONTINUE FOR 2020/21

Make resources and funding available to sustain implementation of following

Regulations or directions issued:-

• Provision of extended water and sanitation services;

• Communication, awareness, and hygiene education;

• Precautionary measures to mitigate employee health and safety risks;

• Provision of improved access and hygiene, disinfection control on all public transport

facilities;

• Community Halls and recreation centres to be used to provide essential services

such as for the processing and payment of SASSA social grants;

• Ongoing refurbishment of taxi ranks to curb the spread of COVID-19;

• Modernise governance systems and processes to enable virtual meetings and public

engagements.

www.salga.org.za

MIUNICIPAL RESPONSE

TO COVID-19

www.salga.org.za

Awareness & education

2

SOAP DRIVE

DOOR-TO-DOOR

COMMUNITY RADIO

www.salga.org.za

Extra water & sanitation

3

www.salga.org.za

Sustained Sanitising and Deep Cleaning

of Public Facilities

4

www.salga.org.za

Encouraging compliance

5

LIQUOROUTLETSCLOSED

ROADBLOCKS

STAYING HOME

VISIBLEPOLICING

www.salga.org.za

Institutional arrangements

8

SANITISER

FACE MASKS

SCREENING & TESTING

www.salga.org.za

FISCAL RESPONSE TO MUNICIPALITIES

EXAMPLE: HANTAM MUNICIPALITY (NORTHERN CAPE)

• Hantam municipality is a very small local municipality with 9 councillors and 140 municipal

workers;

• It is expected to implement the DMA Regulations / directives, for example the requirement that the

municipality to put in place Precautionary measures to mitigate employee health and safety

risks, meaning very basic personal protective equipment (masks, gloves and sanitisers) must be

provided.

• The cost of providing this is estimated at R1180 per employee per month.

• So for the 9 councillors and 140 municipal employees, it will cost the municipality R 175 820 per

month. - costs is to execute one out of the many new obligations placed on the municipality.

• As at 7 May 2020, R150m has been allocated by National Treasury to municipalities.

• Hantam Municipality has been allocated R21 000, with the R 175 820 per month cost for PPE for

councillors and municipal staff, where will the rest of the money come from?

www.salga.org.za

FISCAL RESPONSE TO MUNICIPALITIES:

DISASTER RELIEF FUND ALLOCATIONS

PROVINCE MUNICIPALITY FUNDING

REQUESTED

FUNDING

RECEIVED

VARIANCE

EASTERN CAPE Joe Gqabi District

(including Locals)

R 66, 969, 610 R 3, 785, 000 - R 63, 184, 610

GAUTENG Midvaal Municipality R 15, 000,000 R 718, 000 - R 14, 282, 000

KWAZULU-

NATAL

Umvoti Municipality R 7, 853, 650 R 757, 000 - R 7, 096, 650

LIMPOPO Makhado Municipality R 54, 000, 000 R 149, 000 - R 53, 851, 000

MPUMALANGA Steve Tshwete

Municipality

R 40, 270 000 R 447, 000 - R 39, 823, 000

NORTHERN

CAPE

Frances Baard District

(including Locals)

R 50, 636, 820 R 662, 000 - R 49, 974, 820

NORTH WEST Rustenburg Municipality R 61, 740, 502 R 1, 341, 000 - R 60, 399, 502

WESTERN CAPE Garden Route District R 47, 000, 000 R 268, 000 - R 46, 732, 000

www.salga.org.za

PROJECTED CHALLENGES ARISING FROM

COVID 19

• Job cuts and reduced household income will result in local increase in Poverty and Unemployment; • Increase in Indigent Registrations

LOCAL ECONOMIC DEVELOPMENT

• Projected under recoveries on services rendered (water, electricity & rates) will affect ability to service current and outstanding debt, including bulk (Eskom & Water Boards)

DEBT MANAGEMENT

• Projected under recoveries will affect cross-subsidisation of other non-revenue services;

• Prioritising COVID-19 response demands reprioritising to the detriment of broader service delivery

SERVICE DELIVERY

• Expanded Services related to COVID-19 creates local service delivery expectations to be sustained beyond COVID-19LEGACY EXPECTATIONS

• Technical and infrastructure readiness to convene virtual meetings and public consultation.GOVERNANCE

www.salga.org.za

ANTICIPATED MUNICIPAL SUPPORT REQUIRED

FROM SALGA – IMPACTING 2020/21 APP

• Develop and implement a local government response as a contribution to the national economic recovery plan

LOCAL ECONOMIC DEVELOPMENT

• Introduce debt management plans with a view to determine affordable payment terms;• Support to develop voluntary financial recovery plans;• Review the LGES formula to be more relevant & realistic.

DEBT MANAGEMENT

• Development Planning and Re-prioritisation support and adviceSERVICE DELIVERY

• Develop long term service delivery sustainability models;

• Through DDM lobby for short, medium and long term support in executing services from national and provincial government

LEGACY EXPECTATIONS

• Fast track the development of a Comprehensive IT Solutions Package for municipalitiesGOVERNANCE

www.salga.org.za

IMPACT OF 2018/19 MUNICIPAL AUDIT

OUTCOMES ON APP 2020/21

www.salga.org.za

DORB 2020 p. 99

COVID-19 IMPACT ON LG REVENUE

(INDIGENT MANAGEMENT)

The basic services component

This component helps municipalities provide free basic water, sanitation, electricity and refuse

removal services to households that fall below an affordability threshold. Following municipal

consultation, the formula's affordability measure (used to determine how many households need free

basic services) is based on the level of two state old age pensions.….Statistics South Africa has

calculated that 59 per cent of all households in South Africa fall below this income threshold…”

According to NT the basic services subsidy will fund 10.4 million households in 2020/21 based on

Community Survey 2016

Growth rate in household numbers from

1996 census to 2016 suggests that

number of households should be

approximately 19,7 million in 2021.

If 59% of HH are then assumed to be poor

as per STATS SA then LGES should be

based on 11,6 million Households

The impact of COVID 19 has not even

been considered.

www.salga.org.za

RECOMMENDATIONS

It is recommended that the Portfolio Committee of COGTA to:

1. NOTE the SALGA Annual Performance Plan for the financial year

2020/21 which is inclusive of

a) Key performance indicators

b) Financial plan

2. NOTE that SALGA will be amending the APP to be more responsive

to the realities introduced by the impact of COVID-19.

56

www.salga.org.za

Thank You

REVISED STRATEGIC PLAN 2017-2022 ANNUAL PERFORMANCE …

Documents