BUDGET REVIEW: MUNICIPAL DEMARCATION BOARD AD HOC COMMITTEE ON PROVINCIAL AND LOCAL GOVERNMENT

1
BUDGET REVIEW MUNICIPAL DEMARCATION BOARDAD
HOC COMMITTEE ON PROVINCIAL AND LOCAL GOVERNMENT

• 04 June 2004

2
Overview

• Introducing the Board
• Mandate and Mission
• Organisational Structure Staffing
• Programmes/Projects Underway
• Achievements and Challenges
• Challenges 2004/05
• Strategic Context 2004/05
• Financial and MTEF Issues

3
The Board

• On 1 February 2004, a second Municipal
  Demarcation Board assumed office. They are

Name Province in which Resident Roles as Board Member
Dr Vuyo Mlokoti Eastern Cape Chairperson MDB (Full Time) Chair Executive Committee Member All Board Committees
Ms Essy Letsoalo Limpopo Deputy Chairperson MDB Chair Corporate Services Committee Member Executive Committee.
4
The Board
Dr Michael Sutcliffe Kwa-Zulu/Natal Chair Boundaries Committee Member Executive Committee Member Powers and Functions Committee.
Prof Nicolaas Steytler Western Cape Chair Powers Functions Committee Member Executive Committee Member Corporate Services Committee.
Khosi Tshililo Ramovha Limpopo Member Corporate Services Committee Member Audit Committee Member Boundaries Committee.
Ms Modiehi Molebatsi Gauteng Member Corporate Services Committee Member Boundaries Committee.
Mr Landiwe Mahlangu Gauteng Member Audit Committee Member Powers and Functions Committee.
5
The Board
Ms Nondumiso Gwayi Eastern Cape Member Audit Committee Member Powers and Functions Committee.
Mr Mpho Mogale Northern Cape Member Audit Committee Member Boundaries Committee.
6
Mandate and Mission

• Mandate derives from the Constitution and the
  Municipal Demarcation Act and the MSA and matters
  assigned to the Board
• Section 4 of the Demarcation Act provides that
  the Board is
• Responsible for the determination of municipal
  boundaries
• For rendering an advisory service
• The Board is responsible for
• Assessing the capacity of municipalities to
  perform their functions
• Delimiting wards for each metro and local
  municipality
• Capacity assessments and advise on the division
  of powers and functions
• Activities related to the above function

7
Organisational Structure and Staffing

• Structure on page 5 of the report
• Boards staff establishment comprises a total of
  27 positions
• 4 are vacant, and 2 have been frozen
• 85,7 of Staff Black
• 4,7 of Staff disabled
• 38 Female.

8
Programmes Projects

• The Boards work over the past financial year
  highlighted by work in the following areas
• Boundary Re-determinations
• Technical Correction of Municipal Boundaries
• Planning for the delimitation of Wards
• Investigation into possible re-demarcation of
  non-viable municipalities
• Investigation into categorisation of
  municipalities
• Investigation into options of disposing of Cross
  Boundary Municipalities
• A study of the future of District Management
  Areas
• Annual Municipal Capacity assessments
• The above projects remain challenges for the
  2004/05 financial year.

9
Achievements and Challenges

• Boundary Re-determinations
• Substantial amount of work undertaken as Board
  continued to deal with outstanding and new
  requests for boundary changes.
• Summary of activities at the end of 2003/04 to
  indicate amount of work done. Most of this work,
  as well as other additional work on outer
  boundaries, are still underway in the 2004/05
  financial year, but unlikely to be finalised
  before next elections

ACTIVITY NUMBER OF CASES INVOLVED
Section 26 process 2
Section 21 process 10
Section 21 process where proviso was applied 2
Further investigations on section 21 and 26 8
Section 23 notices published by the IEC 23
Section 23 notices published by the MECs 12
10
Achievements and Challenges
ACTIVITY NUMBER OF CASES INVOLVED
Cross Boundary cases referred to provincial legislatures 8
Re-determinations being investigated 63
11
Achievements and Challenges

• Technical Correction of Municipal Boundaries
• Advanced technology used to improve municipal
  boundaries
• Re-determination technical in nature and aimed at
  correcting existing maps
• Initial approach of the Board was to get affected
  municipalities to concur, thus eliminating the
  need for a section 26 process
• However there has been a poor response from
  municipalities
• Board has therefore decided to embark on a full
  demarcation process, beginning with section 26,
  during the 2004/05 financial year.

12
Achievements and Challenges

• Technical Correction of Municipal Boundaries
  (Cont)
• The following table reflects progress to date

ACTIVITY NUMBER OF CASES INVOLVED
Section 26 process 107
Section 21 process 85
Section 21 process where proviso was applied 0
Further investigations on section 21 and 26 12
Section 21 notices referred to IEC for section 23 process 85
Section 23 notices published by MECs 0
13
Achievements and Challenges
ACTIVITY NUMBER OF CASES INVOLVED
Cross Boundary cases referred to provincial legislatures 12
Re-determinations being investigated 436
14
Immediate Challenges

• Delimitation of Wards
• All wards being delimited during the current year
  (2004/05), in preparation for the 2005 local
  elections
• Circulars in this regard issued to municipalities
  in May 2003, February 2004 and May 2004, to
  enhance co-operation from municipalities in this
  process
• All 3754 wards will have to be reviewed to ensure
  equal number of voters per ward in a munic
• The number of wards may change depending on the
  MECs determination of number of councillors.

15
Immediate Challenges

• Delimitation of Wards (cont.)
• The following existing wards delimited for the 5
  December 2000 local elections, to be reviewed

Province Number of Wards Cross Boundary Municipalities included
Eastern Cape 601
Free State 291
Gauteng 446 Kungwini Local Munic (CBLC2) Merafong City Local Munic (CBLC8) Ekurhuleni Metropolitan Munic Tshwane Metropolitan Munic.
16
Immediate Challenges

• Delimitation of Wards (cont.)

Province Number of wards Cross Boundary Municipalities included
Mpumalanga 393 Greater Groblersdal Munic (CBLC4) Bushbuckridge Munic (CBLC6)
Northern Cape 162 Ga-Segonyana Munic (CBLC1) Phokwane Munic (CBLC7).
Limpopo 445 Greater Marble Hall Munic (CBLC3) Greater Tubatse Munic (CBLC5).
North West 338
Western Cape 330
Kwa-Zulu/Natal 748
Total 3754
17
Immediate Challenges

• Delimitation of Wards (cont.)
• Following timeframes were envisaged at end 2003
  for the ward delimitation process

Time Frame Action
Feb/Mar 2004 Finalise outer boundaries of municipalities for the division of the national common voters roll into municipal segments.
Feb/Mar 2004 Divide the national common voters roll into municipal segments.
March 2004 Publish formula for the number of councillors.
March 2004 Determine and publish number of councillors for each municipality.
April 2004 Determine the number of wards per municipality, and the norm for ward delimitation.
18
Achievements and Challenges

• Delimitation of Wards (cont.)

Time Frame Action
May-Jul 2004 Consultation and provisional delimitation of wards.
Jul/Aug 2004 Logistics for possible public hearings.
Sept-Nov 2004 Consultation and public hearing where necessary.
Dec 2004 Jan 2005 Verification of ward boundaries.
Jan 2005 Determination of ward boundaries.
Feb 2005 Publish ward boundaries in Provincial Gazettes for objections.
March 2005 Consider objections.
19
Challenges 2004/05

• Delimitation of Wards (cont.)

Time Frame Action
April 2005 Publish final ward boundaries for elections.
May-Jul 2005 Voter Registration for local elections 2005/06.
Jul Dec 2005 Electoral Process
Dec 2005 Mar 2006 Local Elections.
20
Challenges 2004/05

• Delimitation of Wards (cont.)
• However a number of factors have already affected
  the ward delimitation process
• Publication of the formula by the Minister for
  PLG was in terms of the timeframe anticipated in
  March 2004, but only occurred on 22 April 2004
• Most of the MECs for local government have not
  yet published the number of councillors.
• The above factors will result in the timeframe
  having to be adjusted to fit in with the new
  realities.
• As a result final ward boundaries may be
  published later than April 2005.

21
Challenges 2004/05

• Re-Demarcation of Non-Viable Municipalities
• From the municipal capacity assessments some
  municipalities identified as possible non-viable
  entities
• These municipalities being considered for
  re-demarcation and/or disestablishment
• Identification based on demonstrated capacity
  and number of functions performed
• Apart from performance of functions, other
  factors contribute to the non-viability of
  municipalities, such as inadequate attention
  given to the municipalities by national and
  provincial departments in terms of capacity
  building
• Also, a number of submissions received to
  re-demarcate or disestablish some municipalities,
  as well as to create additional municipalities
• 12,5 of local municipalities identified as
  possible non-viable and being further
  investigated.

22
Challenges 2004/05

• Re-Demarcation of Non-Viable Municipalities
  (Cont.)
• Viability of municipalities closely monitored
  during the 2002/03 and 2003/04 capacity
  assessments
• Internal meetings with officials in provincial
  departments currently underway, to explore ways
  and means of dealing with the non-viable
  municipalities
• While municipalities with limited capacity are
  identified for possible disestablishment, the MDB
  recognises
• The economic and social spatial realities in
  South Africa
• Large areas both geographically and in population
  terms lack an economic base and for historical
  reasons are plagued with poor institutional
  capacity.

23
Challenges 2004/05

• Meetings with all the affected Provincial
  departments underway
• KZN
• Eastern Cape
• Mpumalanga
• Limpopo
• North West.
• Require provincial departments to advise us on
  capacity development programs underway, as these
  must also be taken into account

24
Depiction of Municipalities Identified
25
Municipalities identified with limited capacity
North West/Northern Cape
Municipality Name Limited Capacity 2002/ 2003 Limited Capacity 2003/ 2004
Moshaweng Municipality (NW1a1) x x
North West/ Northern Cape 1 1
26
Municipalities identified with limited capacity
North West
Municipality Name Limited Capacity 2002/ 2003 Limited Capacity 2003/ 2004
Moretele Municipality (NW371) X X
Moses Kotane Municipality (NW375) X
Ratlou Municipality (NW381) X X
Tswaing Municipality (NW382) X X
Kagisano Municipality (NW391) X X
Greater Taung Municipality (NW394) X
Molopo Municipality (NW395) X X
Lekwa-Teemane Municipality (NW396) X X
North West 8 6
27
Municipalities identified with limited capacity
Eastern Cape
Municipality Name Limited Capacity 2002/ 2003 Limited Capacity 2003/ 2004
Mnquma Municipality (EC122) x
Ngqushwa Municipality (EC126) x x
Ntabankulu Municipality (EC152) x x
Mhlontlo Municipality (EC156 x
Eastern Cape 4 2
28
Municipalities identified with limited capacity
Free State
Municipality Name Limited Capacity 2002/ 2003 Limited Capacity 2003/ 2004
Letsemeng Municipality (FS161) x
Naledi Municipality (FS171) x
Setsoto Municipality (FS191) x
Phumelela Municipality (FS195) x
Metsimaholo Municipality (FS204) x
Free State 5 0
29
Munics identified with limited capacity KZN
Municipality Name Limited Capacity 2002/ 2003 Limited Capacity 2003/ 2004
Vulamehlo Municipality (KZ211) X X
Umzume Municipality (KZ213) X X
Ezinqoleni Municipality (KZ215) X X
Mkhambathini Municipality (KZ226) X
Indaka Municipality (KZ233) X X
Imbabazane Municipality (KZ236) X X
Msinga Municipality (KZ244) X X
Umhlabuyalingana Municipality (KZ271) X X
The Big Five False Bay Municipality (KZ273) X X
Hlabisa Municipality (KZ274) X X
Mbonambi Municipality (KZ281) X X
Ntambanana Municipality (KZ283) X X
Ndwedwe Municipality (KZ293) X X
KwaZulu/Natal 13 12
30
Municipalities identified with limited capacity
Northern Cape
Municipality Name Limited Capacity 2002/ 2003 Limited Capacity 2003/ 2004
Mier Municipality (NC081) x x
!Kheis Municipality (NC084) x
Kgatelopele Municipality (NC086) x
Northern Cape 3 1
31
Municipalities identified with limited capacity
Limpopo/Mpumalanga
Municipality Name Limited Capacity 2002/ 2003 Limited Capacity 2003/ 2004
Greater Tubatse Municipality (CBLC5) x x
Makhuduthamaga Municipality (NP03A2) x x
Fetakgomo Municipality (NP03A3) x x
Bushbuckridge Municipality (CBLC6) x x
Maruleng Municipality (NP04A1) x x
Limpopo/Mpumalanga 5 5
32
Municipalities identified with limited capacity
Limpopo
Municipality Name Limited Capacity 2002/ 2003 Limited Capacity 2003/ 2004
Mutale Municipality (NP342) x
Aganang Municipality (NP352) x x
Limpopo 2 1
33
Municipalities identified with limited capacity
Mpumalanga
Municipality Name Limited Capacity 2002/ 2003 Limited Capacity 2003/ 2004
Thembisile Municipality (MP315) x x
Mpumalanga 1 1
34
Challenges 2004/05

• Categorisation of Municipalities
• Six metros demarcated by the Board for the 2000
  local elections
• Incumbent on the Board to regularly review the
  boundaries of municipalities to establish as to
  whether they comply with section 2 of the MSA,
  and, if so, to determine them as metropolitan
  municipalities
• The Board has investigated the need to demarcate
  further metropolitan areas in South Africa
• Data collected on 24 major conurbations,
  consolidated and analysed.
• There is a further study on metros that will be
  done during the 2004/05 financial year.

35
Challenges 2004/05

• Categorisation of Municipalities (Cont)
• The report was circulated to all the major
  municipalities affected and to provinces for
  comment
• A policy position also discussed with the
  Minister for PLG
• Letter to come from the Board to MECs and SALGA,
  indicating that
• The investigation has been conducted
• The Boards view following the investigation is
  that no additional metros be declared at this
  stage
• Ask for the views.

36
CONURBATIONS ANALYSED
Municipality Province
Cape Town Metro Western Cape
eThekwini Metro Kwa-Zulu/Natal
Johannesburg Metro Gauteng
Tshwane Metro Gauteng
Ekurhuleni Metro Gauteng
Nelson Mandela Metro Eastern Cape
Buffalo City Munic (EC125) Eastern Cape
King Sabata Dalindyebo Munic (EC157) Eastern Cape
Emfuleni Munic (GT421) Gauteng
Mogale City Munic (GT411) Gauteng
Klerksdorp Munic (NW403) North West
Rustenburg Munic (NW373) North West
Mafikeng Munic (NW383) North West
37
CONURBATIONS ANALYSED
Municipality Province
Mangaung Munic (FS172) Free State
Matjabeng Munic (FS184) Free State
Polokwane Munic (NP354) Limpopo
Mbombela Munic (MP322) Mpumalanga
Emalahleni Munic (MP312) Mpumalanga
Middleburg Munic (MP313) Mpumalanga
Sol Plaatjie Munic (NC091) Northern Cape
Msunduzi Munic (KZ225) Kwa-Zulu/Natal
uMhlathuze Munic (KZ282) Kwa-Zulu/Natal
NewCastle Munic (KZ252) Kwa-Zulu/Natal
Hibiscus Coast Munic (KZ216) Kwa-Zulu/Natal
38
Challenges 2004/05

• Cross Boundary Municipalities
• Board contracted by DPLG in 2003 to prepare
  report for the Department with options as to how
  provincial boundaries could be adjusted to
  dispose of all cross boundary municipalities
• Report submitted to DPLG in July 2003
• Indications from the DPLG that the matter will be
  attended to in 2004/05.

39
Challenges 2004/05

• District Management Areas (DMAs)
• Study completed on the future of DMAs, as part
  of the Boards policy review process
• Consultation with stakeholders on the contents of
  the report undertaken
• The Board has adopted a policy position on the
  future of DMAs
• Only National Conservation Areas and Heritage
  Sites to be kept as DMAs
• The rest to be incorporated into local
  municipalities
• The Minister for Environmental Affairs and
  Forestry must however still be consulted on the
  Boards policy position

40
Challenges 2004/05

• Municipal Capacity Assessments
• Board does capacity assessments annually in
  compliance with the MSA
• Focus on assisting the MECs to finalise their
  adjustments of municipal powers and functions, in
  time for implementation when the municipal
  financial year starts on 1 July
• Data obtained is used to prepare 47 districts
  reports, 9 provincial reports and an overall
  national report on municipal capacity.

41
Strategic Context 2004/05 to 2006/07

• Strategic focus during 2004/05 on ward
  delimitation
• Planning and engagements with other affected
  institutions has commenced
• 4 Phases provided for in the draft delimitation
  programme
• Phase 1 Planning (October 2003 to April 2004)
• Phase 2 Consultation (April to December 2004)
• Phase 3 Finalise Objections and Ward Boundaries
  (Jan to April 2005)
• Electoral Process (April to December 2005).

42
Strategic Context 2004/05 to 2006/07

• In addition, the Board will also attend to
• 2004/2005 capacity assessments to determine the
  capacity of municipalities to perform their
  functions
• A study on metropolitan municipalities
• A study on the performance of the roads and
  transport functions
• A study on the viability of municipalities, poor
  performing municipalities and the possible
  re-demarcation of non-viable municipalities.

43
Finance and MTEF Issues

• For the year 2004/05, Board allocated
  R17,023,000.
• Amount inadequate to cover the costs of
  fulfilling the Boards mandate properly
• Budgetary shortfalls with respect to the Boards
  core responsibilities
• Assessing capacity of municipalities and advising
  MECs
• Delimiting wards for each metro and local, for
  2005 local elections.
• Activities related to the above.
• However, we are focusing our efforts only on the
  ward delimitation project

44
Finance and MTEF Issues

• Assistance has been requested from DPLG to secure
  the additional funding required
• In addition, we have secured some NOK2 million
  from the Norwegian Embassy
• Boards total shortfall amounts to R5,553,000,
  but only with respect to ward delimitation, and
  after taking into account the Norwegian funding.

45
Finance and MTEF Issues

• The table below gives an indication of the effect
  of the shortfall on the Boards budget with
  respect to ward delimitation (there are
  shortfalls in other areas)

OPERATING EXPENSES Budget required for 2004/05 Present allocation from MTEF Norwegian Contribution Amount still required
Local Elections ward delimitation
Meetings of the Local Elections Technical Committee and meetings of the Boundaries Committee R32,000 R32,000 Nil
Support Consultants for investigations and public hearings R1,060,000 R710,000 NOK500,000 Nil
46
Finance and MTEF Issues (Cont)
OPERATING EXPENSES Budget required for 2004/05 Present allocation from MTEF Norwegian Contribution Amount still required
Courier Services R85,200 R85,200 Nil
GIS
GIS Support/Mapping R1,500,000 Nil NOK500,000 R1,000,000
Additional Computer Hardware, software and consumables R500,000 Nil NOK500,000 Nil

47
Finance and MTEF Issues (Cont)
OPERATING EXPENSES Budget required for 2004/05 Present allocation from MTEF Norwegian Contribution Amount still required
PUBLICATION OF NOTICES AND GAZETTES
Local Elections Ward Delimitation
Advertisements in the media ( as part of consultation process) R900,000 R300,000 NOK300,000 R300,000
Publication of Notices in the Provincial Gazettes R4,260,000 R500,000 NOK700,000 R3,060,000
48
Finance and MTEF Issues (Cont)
OPERATING EXPENSES Budget required for 2004/05 Present allocation from MTEF Norwegian Contribution Amount still required
TRAVEL AND ACCOMODATION
Travel and Accomodation Local Car Hire R53,000 R45,000 Nil R8,000
Travel and Accomodation Local Airfares R1,060,000 R75,000 Nil R985,000
Travel and Accomodation Local Hotel R265,400 R65,400 Nil R200,000
TOTAL R9,715,600 R1,812,600 NOK2,000,000 R5,553,000
49
Conclusion

• Failure to obtain the additional funding needed
  by the Board will
• Compromise the ward delimitation process
  seriously
• Compromise other core functions of the Board
• Disempower the Board to fulfil its
  constitutional and legal obligations
• Make the Board more dependent on donor funding to
  fulfil its legislated mandate
• Open up the Board to legal challenges.

50
Thank you