Municipal Powers and Functions Presentation: Dr' Michael O Sutcliffe

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Municipal Powers and FunctionsPresentation Dr.
Michael O Sutcliffe

• IMASA Seminar
• 16 September 2002

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Process
Delimitation and elections
Demarcation and establishment
A
C
B
B
B
Service delivery
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Government (3 spheres) performs certain functions
to meet service needs of all people
NATIONAL PROVINCIAL GOVERNMENT
DISTRICT
MUNICIPALITY
LOCAL
COMMUNITIES
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New Relationships required by Constitution
Co-operative government and governance

• A municipality must strive, within its
  financial and
• administrative capacity, to ensure the
  provision of
• services to communities in a sustainable
  manner.
• They must to promote social and economic
• development and encourage the involvement of
• communities in the matters of local government.
• A municipality has the right to govern,
• on its own initiative,
• the local government affairs of its community.
• The national or a provincial government
• may not compromise or impede a
• municipality's ability or right to exercise

Distinct Interdependent Interrelated
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Challenge Services in 9 Provinces to Urban and
Rural population with different needs
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Services to people living in municipalities of
different sizes Average geographic area,
household and population size per local
municipality per province
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Different capacity to raise Revenue URBAN
VERSUS RURAL (Category B)

• Source Urban Rural Variance
• Electricity 33 2 31
• Water 14 11 3
• Property rates 26 18
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• Refuse 4 3 1
• Sanitation 7 3 4
• Equitable share 2 37 35
• Other subsidies 2 5 3
• (e.g. CMIP and water transfers)
• Other 12 21 9
• Total 100 100
• Note Lack of capacity in rural areas to generate
  income.
• Dependence of other spheres.

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Capacity Classification

• Classification 1 - Aspirant Metropolitan Areas
  (At least 5 municipalities)
• fulfil some of the criteria to be metropolitan
  areas
• have significant budgets (without electricity
  have budgets in excess of R300 million per year)
• undertake almost all of the Category B functions,
  
• could, on an agency basis, undertake for the
  District Municipalities all of the Category C
  functions.
• Classification 2 Significant and Large Category
  B Municipalities (At least 17 municipalities)
• fulfil some but limited number of the criteria to
  be metropolitan areas,
• have large budgets (without electricity in excess
  of R100.1 million 300 million per annum)
• Can perform all Category B functions, and
• have the capacity to assume most Category C
  functions.
• Classification 3 Significant Category B
  Municipalities (At least 22 municipalities)
• have fairly large budgets (without electricity in
  excess of R50.1 million 100 million per annum)
• are mainly an agglomeration of small towns,
• have the capacity to assume most if not all
  Category B functions.

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Capacity (Cont)

• Classification 4 - Strong Category B
  Municipalities (At least 84 municipalities)
• budgets between R10.1- 50 million,
• has a dominant urban centre (may be a small town
  but with good infrastructure)
• Classification 5 - Weak Category B Municipalities
  (At least 27 municipalities)
• budgets between R1-10 million, and
• has a dominant urban centre with limited
  infrastructure
• limited income base
• reliance on grant finance
• Classification 6 Very Limited Capacity (At
  least 46 municipalities)
• budgets between R1-10 million,
• has one or no urban centre
• heavy reliance on grant finance
• Classification 7 New (Some 30 municipalities)

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Expenditure Capacity to deliver
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Developmental challenges Backlogs in service
delivery in traditional areas

• There are huge developmental challenges in areas
  of traditional rural communities
• Backlogs in water, electricity, telephones,
  sanitation in traditional authority areas as a
  percentage of total provincial backlogs
• Northern Province (70-90),
• KwaZulu-Natal (60-80),
• Eastern Cape (50-60),
• Mpumalanga (40-60),
• North-West (40-60),
• Free State (20-30)

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Constitution assigns competencies to three
spheres Confusion or challenge for co-operation?
National/Prov.
Provincial
Local
Agriculture Airports other than international
and national airports Cultural matters Disaster
management (1) Education at all levels,
excluding tertiary education Environment Health
services(2) Housing Population development Soil
conservation Tourism(4) Trade Welfare services
Ambulance services(1) Libraries other
than national libraries Museums other than
national museums Provincial recreation and
amenities Provincial roads and traffic(3)
Air and noise pollution Child care facilities
Electricity and gas reticulation Fire fighting
services(1) Municipal airports Municipal health
service(2) Storm water management Water and
sanitation services Cemeteries Markets
Municipal abattoirs Municipal roads(3) Local
tourism (4) Refuse removal, refuse dumps Traffic
and parking(3)
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Can a municipality also perform
national/provincial functions? Yes
National/Prov.
Provincial
Local

• Must, by agreement and subject to
• conditions, assign to a municipality
• the administration of the functions
• if that would most effectively be
• administered locally and
• if the municipality concerned
• has the capacity to administer it.
• A cabinet member/MEC may assign
• any power or function that must
• be performed in terms of an act
• to a municipal council. Such an
• Assignment must be in terms of an
• Agreement between the cabinet
• member/MEC and the municipal
• council must be consistent with the
• act concerned and
• takes effect upon proclamation
• thereof by the President/Premier.

Agriculture Airports other than international
and national airports Cultural matters Disaster
management Education at all levels, excluding
tertiary education Environment Health
services Housing Population development Soil
conservation Tourism Trade Welfare services
Ambulance services Libraries other than national
libraries Museums other than national
museums Provincial recreation and
amenities Provincial roads and traffic
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Municipalities Constitution and legislation
allocate powers and functions to 3 categories
A
B
C
B
All powers and functions
B
B
B
Specified powers and functions such as water,
sanitation, electricity, municipal health,
fire services, cemeteries, airports, roads,
passenger transport, markets, abattoirs
All other not specified for districts
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Can a district perform a local function and vice
versa? Authorisations/Adjustments
District

• Section 84(3)
• Minsters
• authorisations
• No criteria
• Authorisations
• can continue

• Section 18
• MECs authorisations
• All other functions
• Criteria Can or does
• a municipality perform
• or for any reason,
• it is necessary to
• ensure the continued
• performance of
• the function
• The Demarcation Board
• has recommended the
• authorisation
• Authorisations lapse
• on 5 December 2002
• Section 85(1)
• Adjustments by MECs
• All functions except 4

Local
Local
Interdependence
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RESULTS OF SEC. 84(3) AUTHORISATION

• STATUS QUO IN GEOGRAPHIC TERMS
• In 44 of the 47 district areas the local
  municipalities provide the
• 4 national functions in only 5-10 of the total
  geographic area.
• In 41 DC areas the DCs exercise the 4 national
  functions in more
• that 95 of their areas
• In 3 DC areas the DCs exercise the functions in
  90-95
• of their areas
• In 3 DCs areas the DCs exercise the functions in
  less that 90
• of their areas
• Minister in process of reviewing section
  84(3)authorisations

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Review of MEC pre- election sec 18 authorisations

• Nov/Dec 200 Status quo
• Dec 2000 to April 2001 MDB reviewed
• status quo
• April 2001 Recommendations to MECs
• Most MECs implemented recommendations
• Needs review once Ministers new authorisations
  are in place

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Problems/Challenges

• Overlap of functions between three spheres
  health, roads, environment etc.
• Overlap of functions between district and local
  municipalities
• Definitions key to solutions
• Levels of service
• Determination of capacity (criteria and indices)

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Provisional timeframes for review
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IMASA can help!

• Clarify definitions (document on web site)
• Define minimum level of service in respect of
  each function
• Develop indices to measure capacity
• Make inputs at district workshops to finalise
  recommendations to MECs for adjustments
• Implement Ministers authorisations and MECs
  adjustments

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Contact you partner in transformation

• Web-site for more information about MDB
  activities
• www.demarcation.org.za
• Send your contributions to
• robert_at_demarcation.org.za
• Fax [phone] (Attention Robert)