REVISED STRATEGIC PLAN - 2017-2022 ANNUAL PERFORMANCE PLAN 2020-2021 Portfolio Committee on COGTA
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REVISED
STRATEGIC PLAN
2017-2022
ANNUAL
PERFORMANCE
PLAN 2020-2021
Portfolio Committee on COGTA
12 May 2020
www.salga.org.za
2
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 Year
Strategy.
• Part 3 – Changes that impact on SALGA’s Strategy: Other factors that influence SALGA’s strategy and
performance 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
www.salga.org.za
PART 1
BACKGROUND
www.salga.org.za
7
BACKGROUND: SALGA’S MANDATE
www.salga.org.za
4
6
VISION, MISSION & VALUES
To be an
Association of To be consultative, informed,
municipalities that is mandated, credible and
at the cutting-edge accountable to our
of quality and VISION MISSION membership and to provide
sustainable services value for money
Dynamic: Being flexible VALUES Responsive: Being quick and flexible in
and adapting to change to responding to member needs
service members effectively Innovative: Exploring new ways of
and efficiently doing things and providing members
Excellence: Serving with fresh and unconventional services
members with pride and
excellence.
www.salga.org.za
8
The SALGA ORGANISATIONAL EVOLUTION
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
Relevance & Meaningful Impact
2017 - 2022 High performance & good governance
translate into meaningful impact
Well Governed
2012 - 2017 High performing organisation, consistently receiving
clean audits
Consolidation
2007 - 2012 Consolidation as unitary structure that plans, operates an
reports as one.
2000 - 2007 Coordination of Democratic Local Government
Coordinating the voice of a fragmented local government
1996 - 2000 SALGA Established & LG Law and Policy Development
Start of journey with 9 different provincial structures, and participation
in LG policy and regulation
6 • 6 www.salga.org.za
PART 2
SALGA STRATEGIC PLAN
www.salga.org.za
10
Planning, budgeting and
reporting Cycle
Policy Development /
Environmental Analysis
Identify desired impacts
Strategic Planning/
Assess and adjust Specify performance
Annual Performance Plan
indicators
SALGA
End-year reporting
Planning, Performance planning
and budgeting
budgeting and
reporting
Monitor and take Set targets and
corrective action Implementation and allocate resources
in-year reporting 8
11
LOGIC FRAMEWORK
The developmental results of achieving
specific outcomes
IMPACTS
Local towards
Manage Government Sector Goals –
What we aim to change? achieving these impact level results
long term
results
The medium-term results for specific
beneficiaries that are the consequence
of achieving specific outputs OUTCOMES
What we wish to achieve? SALGA results that contribute to
The final products, or goods and sector goals - strategic objectives
services produced for delivery and priority programmes
OUTPUTS
What we produce or deliver?
The processes or actions that use a Planbudget,
Plan, budget, implement and
range of inputs to produce the desired implement and (delivery of
outputs and ultimately outcomes ACTIVITIES monitor
monitor
What we do?
mandate)
The resources that contribute to
the production and delivery of
outputs INPUTS
What we use to do the work?
9 www.salga.org.za
12
SALGA’S ROLE IN INSPIRING
CONTINUITY AND CHANGE
• Focus on SALGA’s role as PROTECTOR to enforce
rights of LG robustly
• Constructively DISRUPT (in positive sense) where
DISRUPTOR
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
www.salga.org.za13
GOALS
Goal 01 Goal 03
Goal 02
Sustainable, Inclusive
Economic Growth Financial
Sustainability of
underpinned by Good Governance & Local Government
Spatial Resilient Municipal and Fiscal Equity
Transformation Institutions
www.salga.org.za14
SALGA STRATEGY (2017 – 2022)
To support Regional
To promote high Economic Strategies To develop and
quality and reliable and effective Land Use To modernise support the
To strengthen To support
Service Provision Management governance implementation of innovative
and Infrastructure approaches for oversight and financial strategies for
systems and revenue
Investment economies of scale and accountability long term enhancements
social cohesion
processes sustainability and strategies for
viability of local local government
government
GOAL 1 GOAL 2
GOAL 3
Sustainable, Inclusive Good Governance & Financial Sustainability of LG
Economic Growth and Resilient Municipal and Fiscal Equity
Spatial Transformation Institutions
To implement a To strengthen LG’s To promote
To To strengthen financial
sustainable role in Community sound and
professionalise management systems and
Urban Development and productive
Local controls
Development Social Cohesion labour relation
Programme Government
www.salga.org.zaPART 3
CHANGES THAT IMPACT ON SALGA’S
STRATEGY
www.salga.org.za16
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
www.salga.org.za17
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
www.salga.org.za18
2019 – 2024 MTSF LOGIC MODEL
www.salga.org.zaPART 4
BASELINE TO THE 2020-2021
ANNUAL PERFORMANCE PLAN
www.salga.org.za25
Performance over the last six years
100 100
98 98
96 100 100
98 93 98
100 96
93
95 84
90 84
85
80
75
2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018 2018/2019
SALGA's Quality Assured Annual Performance Percentage (%)
AGSA Audited Annual Performance Percentage (%)
www.salga.org.zaSTATUS OF STRATEGY 2016 - 22 IMPLEMENTATION
2017/18 2018/19 2019/20 2020/21 2021/22
Outcome 1
1 Sustainable, inclusive economic growth and 15/16 30/31 22/23 34 ?
spatial transformation.
Outcome 2
2 Good governance & resilient municipal 21/23 14/14 10/11 27 ?
institutions
Outcome 3
3 Financial sustainability of LG and fiscal equity 5/5 3/3 3/3 4 ?
Outcome 4
4 Effective and efficient administration 17/17 7/7 2/2 5 ?
OVERALL PERFORMANCE
58/61 54/55 37/39 www.salga.org.za
70 ?2017/18
HIGHLIGHTS OF PERFORMANCE
www.salga.org.zaGOAL 1: Sustainable, Inclusive Economic Growth Underpinned by
Spatial Transformation
• 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.zaGOAL 1: Sustainable, Inclusive Economic Growth Underpinned by
Spatial Transformation
• 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.zaGOAL 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.zaGOAL 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.
www.salga.org.zaGOAL 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.zaGOAL 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.za2018/19
HIGHLIGHTS OF PERFORMANCE
www.salga.org.zaOutcome 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.zaOutcome 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
www.salga.org.zaOutcome 2: Good governance & resilient municipal institutions
• Through the SALGA Centre for Leadership Disciplinary
Province Conciliations Arbitrations
and Governance (SCLG) 3979 councillors Hearings
and senior municipal officials benefited in the
Eastern Cape 5 - -
training programmes
Free State 4 - 4
• 38 municipalities received support on
Gauteng - - 3
Performance Management Systems
KZN - 115 97
• 454 cases were represented on labour Limpopo 6 3 7
related matters
Mpumalanga 20 - 17
• Disciplinary hearings decreased from 107 in Northern Cape 18 7 18
2017/18 to 79 in 2018/19; Conciliations
North West 2 4 7
increased from 82 in 2017/18 to 126 in
Western Cape 24 8 96
2018/19 and
Total 79 137 249
• Arbitrations decreased from 183 in 2017/18 Grand total 465
to 249 in 2018/19 financial year.
www.salga.org.zaOutcome 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.zaOutcome 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.za2019/20
HIGHLIGHTS OF PERFORMANCE
www.salga.org.zaOUTCOMES 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.zaOutcomes 2
To professionalise Local Government – 2019/2020
CAPACITY BUILDING PROGRAMMES TOTAL NUMBER OF COUNCILLORS & OFFICIALS WHO
BENEFICIARIES 2019/2020 ATTENDED CONTINOUS DEVELOPMENT PROGRAMMES
600
541
400
337
Officials, 200
Officials
4625
Councillors,
Councillors 56 50 50 56
3842 0
Municipal Health Risk Mhs And Eh Pesticides 2nd Annual LG 3rd Annual LG
Health Service Waste Forums Training Talent PMS Seminar
0 1000 2000 3000 4000 5000
Summit 2019 Management Management
Tool Seminar
Health Professions Council of South Africa South African Board of People
Practices (SABPP)
www.salga.org.zaPART 5
SALGA’S REVISED STRATEGY 2017-2022
AND THE 2020-2021
ANNUAL PERFORMANCE PLAN
www.salga.org.za20
Key interlinking challenges facing
municipalities and the local government sector
Capabilities, Governance & Fiscal Policy & Financial
Leadership Management
Weakening municipal governance and
Increase of municipalities in financial distress
leadership characterised by poor oversight,
due to many factors like: increase in the cost
limited consequence management,
of services (tariffs), decrease in revenue
instability at senior management levels,
collection, supply chain management
and a lack of skills undermine service
inefficiencies, and irregular, fruitless and
delivery and transformation at the local
wasteful expenditure , low revenue bases,
sphere
high levels of unemployment & poverty.
Spatial Transformation &
Inclusion Service Delivery &
Spatial transformation and inclusive Infrastructure
communities undermined by depressed Increase in coverage of basic services but
economic conditions, increasing impact of under pressure from widening funding gap
climate change, regressing social cohesion, for infrastructure, poor life cycle asset
poor coordination in planning, access to management, maintenance and effective
land, bulk services, limited decentralisation project implementation, as well as lack of
in housing delivery, transport challenges technical capabilities.
and safety and security
37 www.salga.org.za 372020 DORB ALLOCATIONS vs
CONSTITUTIONAL FUNCTIONS
VS
• 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
www.salga.org.zaPOWERS & 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.zaPOWERS & FUNCTIONS /UNFUNDED
MANDATES
Provincial Grants per DoRB
• 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
www.salga.org.za21
IMPACT: A RESPONSIVE, ACCOUNTABLE, EFFECTIVE,
EFFICIENT AND DEVELOPMENTAL LOCAL GOVERNMENT
OUTCOME 1 OUTCOME 2 OUTCOME 3 OUTCOME 4
Municipalities with Good governance Financial Efficient and
sustainable, & resilient sustainability of effective
inclusive economic municipal local government & administration
growth institutions greater fiscal
underpinned by equity
spatial
transformation
1 2 3 4
www.salga.org.za22
Number of outputs per outcome
Outcome one, two and
Outcome 2
Outcome 3
three are externally
focused and directly
27 4 provide support to
municipalities.
Outcome four is
internally focused and
34 5 strengthens the internal
capacity to support
municipalities
Outcome 1 Outcome 4 Total outcomes = 70
www.salga.org.za23
OUTCOME 1
OUTCOME
Municipalities with MTSF 2019-24 PRIORITIES
sustainable, inclusive STATEMENT
Priority 1: Economic Transformation and Job
economic growth Creation
underpinned by To foster integrated and Priority 2: Education, Skills and Health
spatial transformation sustainable urban Priority 3: Consolidating the Social Wage
development and through Reliable and Quality Basic Services
management; regional Priority 4: Spatial Integration, Human
economic growth Settlements and Local Government
Priority 5: Social Cohesion and Safe
inclusive of rural Communities
development and bring Priority 6: A Capable, Ethical and
about social cohesion Developmental State
1
34 OUTPUTS = 42 TARGETS
www.salga.org.za24
OUTCOME 2
Good OUTCOME STATEMENT
governance &
resilient MTSF 2019-24
Investing in good governance and PRIORITIES
municipal modernization of government
institutions approaches, strengthening
Priority 6: A Capable, Ethical
community interface mechanisms,
and Developmental State
sound labor relations and
professionalization
2
27 OUTPUTS – 33 TARGETS
www.salga.org.zaPreventative controls – the ultimate deterrent
19Preventative controls cannot work effectively if all
assurance providers are not playing their role
ASSURANCE PROVIDED BY MANAGEMENT / LEADERSHIP
Senior management 5% 49% 46%
Municipal managers 7% 58% 35%
Mayors 25% 50% 25%
INTERNAL INDEPENDENT ASSURANCE AND OVERSIGHT
25% 53% 20% 2%
Internal audit units
Audit committees 31% 50% 18% 1%
Coordinating/ monitoring departments 4% 66% 30%
EXTERNAL INDEPENDENT ASSURANCE AND OVERSIGHT
Municipal councils 26% 47% 27%
Municipal public accounts committees 27% 41% 32%
Portfolio committees on local government 44% 56%
MFMA
20
2018-1925
OUTCOME 3
OUTCOME STATEMENT
Financial
sustainability of Improvement of the financial health of MTSF 2019-24
local government municipalities through: PRIORITIES
& greater fiscal
equity o A revised Local Government fiscal
framework Priority 6: A Capable,
o Effective revenue management and Ethical and Developmental
enhancement State
o Access to alternative/innovative
funding sources
3 o Sound financial management
4 OUTPUTS = 6 TARGETS
www.salga.org.zaFinancial health of municipalities
12% 8% 13%
23%
Limpopo
Gauteng
44%
33% 79% 62%
28% 17%
Mpumalanga
44% 44%
25% 17%
13% 50%
2018-19 2017-18 2018-19 2017-18
55%
33%
6% 6%
12% 25% 2018-19 2017-18
North West
13% 13%
82% 15%
Free State
69% 23%
KwaZulu-Natal
87% 87%
11% 8%
Northern Cape
23% 68% 56%
26% 2018-19 2017-18
69% 2018-19 2017-18 17% 21%
63%
2018-19 2017-18
2018-19 2017-18 19% 24%
Eastern Cape
43%
41%
Western Cape
72% 83% 38% 35%
21% 2018-19 2017-18
14%
7% 3%
2018-19 2017-18
MFMA
Good Of concern Intervention required 13
2018-19Local government finance – the stark reality
The financial statements of 229 completed audits shows:
• The total revenue (excluding equitable share and conditional grants) was R226 billion, but not all is
Revenue
recoverable (see balance sheet)
• National government financed the municipalities through equitable share grants of R55 billion and
conditional grants of R43 billion
Income statement • Salary and wages (including councillors remuneration) was R91,30 billion – represents 40% of own
revenue and 166% of equitable share
Expenditure
• 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
Net result
• 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
Balance sheet
•
• 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
14
their financial positionEskom and Water Boards outstanding debts – 229
municipalities
Eskom outstanding debt – R billion
Total amounts owed 31 - 120 days Over 120 days Total amount in arrears
(as at June 2019) (i.e. 31 days and over)
R18,91 R2,29 R9,02 R11,31
Highest contributors – R billion
Municipality Total amounts in arrears 31 - 120 days Over 120 days
(as at June 2019)
Emalahleni (MP) R2,77 R0,33 R2,44
Ngwathe (FS) R1,04 R0,07 R0,97
Lekwa (MP) R0,80 R0,12 R0,68
Water boards outstanding debt – R billion
Total amounts owed 31 - 120 days Over 120 days Total amount in arrears
(as at June 2019) (i.e. 31 days and over)
R9,74 R0,86 R5,38 R6,24
Highest contributors – R billion
Municipality Total amounts in arrears 31 - 120 days Over 120 days
(as at June 2019)
Mopani (LP) R0,93 R0,09 R0,84
Vhembe (LP) R0,83 R0,02 R0,81
Msukaligwa (MP) R0,68 R0,14 R0,54
1526
OUTCOME 4
Efficient and
MTSF 2019-24
effective OUTCOME PRIORITIES
administration STATEMENT
To foster a sound financial Priority 6: A Capable, Ethical
management of SALGA and Developmental State
processes and procedures
4
5 OUTPUTS = 6 TARGETS
www.salga.org.zaMANDATE
ADVOCATE, LOBBY & REPRESENT
www.salga.org.za4228
OUTPUTS OUTPUT INDICATOR Target
2020 - 2021
Policy guide on the role of LG in NHC approval of a policy guide on Policy guide on the role of LG in response to HIVAIDS
response to HIVAIDS for the role of LG response to HIV/AIDS developed and submitted to National Health Council
municipalities and roles and responsibilities (NHC) by 31 March 2021
clarified
Assessment of the SALGA Number of organisational policies SALGA policies reviewed to integrate issues
programmes and processes to reviewed and updated vulnerable groups and mainstreaming strategy
integrate mainstreaming of developed by 31 March 2021
vulnerable groups
Policy guide on the role of Local Clarifying the role of Local Lobby the Department of Social Development to
Government in the provision of Government in the provision of create a platform to engage on local government
services on child care facilities services on child care facilities 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 Clarifying the role of Local Policy guide on public safety developed and
Government in Public Safety Government in Public Safety submitted to Minmec by 31 March 2021
www.salga.org.zaOUTPUTS OUTPUT INDICATOR Target 4229
2020 - 2021
A municipal strategic Clarifying the role of Local Municipal strategic framework developed on
framework on devolution of Government on the devolution of devolution of transport function in Municipalities by 31
functions toward achieving transport function March 2021
integrated public transport and
the new urban agenda
Policy guide on the role of Clarifying the role of Local Policy guide on the role of local government in sport
Local Government in Sport Government in Sport Development development is developed and submitted to Minmec
Development developed by 31 March 2021
SALGA position paper on the Relevant department lobbied on the SALGA position paper on the use of land for Public
use land for Public good in line use of land for Public good in line with good in line with municipal IDPs and SDF developed
with Municipal IDPs and SDFs. Municipal IDPs and SDFs and submitted to MINMEC by 31 March 2021.
SALGA position on an enabling Relevant stakeholders lobbied on the SALGA position on an enabling legal, policy and fiscal
legal, policy and fiscal enabling legal, policy and fiscal framework for housing accreditation developed by 31
framework for housing framework for housing accreditation March 2021
accreditation
www.salga.org.zaOUTPUTS OUTPUT INDICATOR Target 4230
2020 - 2021
SALGA position on social Relevant stakeholders lobbied on SALGA position on social housing & backyard rental
housing & backyard rental social housing & backyard rental developed by 31 March 2021
developed by 31 March 2021
2018 SALGA Energy Summit 2018 SALGA Energy Summit Energy Reform Proposals Developed by 31 March 2021
outcomes implemented Outcomes Implemented
Inputs for Redesign of Energy Policy Framework
developed by 31 March 2021
Procedure for Small Scale Embedded Generation
developed by 31 March 2021
Strategy to operationalise IMTT and cabinet decisions Framework of the Service Delivery Agreement
IMTT and Cabinet Decision implemented developed by 31 March 2021.
on Service Delivery
Agreement 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
www.salga.org.zaOUTPUTS OUTPUT INDICATOR Target
4231
2020 - 2021
Framework developed to direct National and provincial government A study to evaluate the process, application,
support and monitor must support and strengthen the successes and challenges imposed by section 139
municipalities to execute their capacity of municipalities to manage interventions conducted by 31 March 2021
executive obligations their own affairs, to exercise their
powers and to perform their functions 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 The voice of Local Government is Participate and represent local government in the IGR
representation in IGR and heard in the IGR and Parliamentary and Parliamentary foras by 31 March 2021
Parliamentary structures at both structures
provincial and national level
SALGA 5th Utility (Broadband Planned and Facilitated SALGA 5TH 3 Planned and Facilitated SALGA 5TH Utility
Infrastructure and Services) Utility (Broadband Infrastructure and (Broadband Infrastructure and Services) Capacity
Capacity Building and Training Services) Capacity Building and Building and Training Workshops by 31 March 2021
Workshops conducted Training Workshops
www.salga.org.za4232
OUTPUTS OUTPUT INDICATOR Target
2020 - 2021
SALGA position on the Lobby and advocated for the review SALGA position on the review of the equitable
division of revenue allocation of equitable share allocation for share allocation for local government developed by
for Local Government local government 31 March 2021.
Position paper on sustainable financing of rural
development developed by 31 March 2021
National Revenue National Revenue Management National Revenue Management Programme
Management Programme Programme implemented at developed and implemented by 31 March 2021
selected municipalities
www.salga.org.zaMANDATE
EMPLOYER BODY
www.salga.org.zaOUTPUTS OUTPUT INDICATOR Target 4234
2020 – 2021
SALGA position documents f or Multi-Year Salary and Wage SALGA Collective Bargaining Strategy Approved
the multi-year salary and wage Collective agreement negotiated and Negotiations on Salaries and Wages facilitated
collective agreement developed by 31 March 2021
Collective Agreement on pension The collective agreement on pension Facilitate the conclusion of negotiations on the
fund restructuring finalised and fund restructuring is implemented in Pension Fund Restructuring and the Wage Curve by
wage curve collective agreement municipalities 31 March 2021.
negotiated.
Municipalities represented and Number of municipalities Municipalities represented on labour related matters
supported on labour related represented and supported on (Advice, Conciliations, Mediations and Arbitrations
matters labour related matters 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 Job evaluation units and provincial Coordinate the Implementation of TASK Job
implemented in municipalities audit committee capacitated Evaluation in Municipalities by 31 March 2021.
Feasibility Study report for Mandated compensation benefit Secure approval of the NEC to acquire the licence to
SALGA proposal to provide process from municipalities provide compensation benefit by 31 March 2021
Compensation Benefits to
municipalities
www.salga.org.zaMANDATE
CAPACITY BUILDING
www.salga.org.zaOUTPUTS OUTPUT INDICATOR Target 4236
2020 – 2021
Assessment report on the Improved municipal response Assessment study to reflect on municipal state of
Performance of Disaster Risk strategies on Disaster Risk performance of fire and emergency services to
Management, Fire and Emergency Management, Fire and Emergency identify areas of intervention conducted by 31 March
Services readiness in Services 2021
municipalities
Municipal workforce well Number of municipal workforce Roll out Municipal Performance Management
capacitated with performance capacitated with performance Training Programme by 31 March 2021
management capabilities management capabilities
Municipal Councillors and Number of municipal Councillors Convene the 4th Annual Local Government
Officials well informed and and Officials informed and Performance Management Seminar by 31 March
knowledgeable on performance knowledgeable on performance 2021
management management
Institutionalise the integrated Number of capacity building A consolidated Integrated Capacity Building
Capacity building implementation programmes implemented Implementation Plan by 31 March 2021
Plans
Institutionalise the e-learning Number of blended capacity building Implement the eLearning blueprint/strategy for local
blueprint programmes rolled out government by 31 March 2021
www.salga.org.zaMANDATE
SUPPORT AND ADVICE
www.salga.org.zaOUTPUTS OUTPUT INDICATOR Target 4238
2020 – 2021
Assessment report on work done Assessment tool to monitor the Assessment study on the work done by
by municipalities to mainstream mainstreaming inclusion of municipalities to mainstream issues of vulnerable
issues of vulnerable groups vulnerable groups groups by 31 March 2021
Status quo report on Local Status quo on LG response to An assessment of the LG response to poverty
Government response to Poverty Poverty alleviation alleviation developed together with the Plan of
alleviation Action by 31 March 2021
Coordinate and Implement the Gender mainstreaming and women Implementation of the SWC Resolutions and
SALGA Women's Commission empowerment Programme of Action by 31 March 2021
Programme of Actions
Differentiated support programme Improved municipal planning and Differentiated support provided to municipalities on
for effective SPLUM in land use management in SPLUM by 31 March 2021
municipalities (SPLUMA municipalities
compliance, implementation of
IDP reviews and localization of
SDFs)
SALGA Comprehensive Rural Number of municipalities supported Lobby intergovernmentally for Rural Development
Development Programme on implement Rural Development programmes to be implement through and in
Programme. (e.g. Agriculture, Land, partnership with municipalities by 31 March 2021
Infrastructure Delivery, Spatial www.salga.org.za
Planning)OUTPUTS OUTPUT INDICATOR Target 4239
2020 – 2021
Selected municipalities supported Number of municipalities supported Municipal land audits conducted in 2 Metros and 20
to develop land acquisition and to develop land acquisition and local municipalities by 31 March 2021.
disposal strategies and to disposal strategies and to conduct
conduct land audit land audit
Status Report on the Devolution and Funding Framework Facilitated engagements with provincial department
implementation of the for devolving the environmental and municipalities to implement the Environmental
Environmental Management function to municipalities adopted Management Protocols by 31 March 2021
Protocols
Sector support programme to Improved municipal compliance to Sector Support programme to improve municipal
improve municipal compliance to legislative framework for compliance to legislative framework for
legislative framework for environmental functional areas environmental functional areas (biodiversity, air
environmental functional areas quality and coastal management) is developed and
(biodiversity, air quality and implemented by 31 March 2021
coastal management)
A differentiated Climate Change Improved municipal response Differentiated Climate Change Response
response programme strategies on Climate Change programme developed and implemented for different
categories of municipalities by 31 March 2021
Municipalities supported to Number of municipalities supported Identified municipalities supported to perform their
improve waste management to perform their authority function on authority function (i.e. bylaws, Integrated Waste
www.salga.org.za
services waste management Management Plan, etc.) by 31 March 202142 40
OUTPUTS OUTPUT INDICATOR Target
2020 – 2021
Municipalities supported on water Municipalities have access to Identified municipalities exposed to new innovative
services innovative water and sanitation water and sanitation solutions and management by
technology solutions by March 2021 31 March 2021
Regional economic development Number of the STR programme STR programme implemented in two regions and
and small town sustainability with regional economic approach in selected municipalities by 31 March 2021
programme implemented selected regions/municipalities
Municipal employment promotion Number of municipalities engaged to Engage targeted municipalities to improve their
capability supported support the promotion of employment promotions actions, using existing
employment initiatives by March levers and tools by 31 March 2021
2021
Roll out the Consequences & Improved municipal governance Convene workshops in all provinces to roll out the
Accountability Framework to Consequences & Accountability framework by 31
municipalities. March 2021
Municipalities support on Number of municipalities supported 5 Municipalities per province supported on
governance related matters raised on governance related matters governance related matters by 31 March 2021
in the AGSA municipal Audit
Outcome Report
www.salga.org.zaOUTPUTS OUTPUT INDICATOR Target 4241
2020 – 2021
Framework developed to direct support National and provincial government must Lobby and advocate for the inclusion of local government
and monitor municipalities to execute support and strengthen the capacity of support processes and requirements in the development and
their executive obligations municipalities to manage their own processing of the Municipal Intergovernmental Support,
affairs, to exercise their powers and to Monitoring and Interventions Bill by 31 March 2021
perform their functions
Innovative solutions and programmes Innovative solutions and programmes for Provide support to municipalities on innovation solutions and
provided to municipalities municipalities programmes by 31 March 2021
SALGA ICT Capability Assessments SALGA ICT Capability (Governance and 50 Municipalities assessed on the SALGA ICT Capability
conducted based on the SALGA ICT Service Management) Maturity Model Maturity Model by 31 March 2021
Capability (Governance and Service implemented
Management) Maturity Assessment
Model
SALGA Smart Cities Development Piloted implementation of SALGA Smart Pilot implementation in one municipality on the SALGA's
Framework and Implementation Model Cities Development Framework and Smart Cities Development Framework and Implementation
implemented in Municipalities Implementation Model in Municipalities Model by 31 March 2021
Municipalities with functional and Number of municipalities with functional Implement customised performance management support
effective performance management and effective performance management interventions for selected municipalities by 31 March 2021
systems systems
www.salga.org.za4242
OUTPUTS OUTPUT INDICATOR Target
2020 – 2021
Implementation of the Local government is Pillars of the professionalization framework
Professionalization Framework professionalised programitised and implemented by 31 March 2021
A programme for strengthened Number of support initiatives 10 % Reduction in the number of significant audit
oversight and accountable developed and support provided to findings from the supported municipalities by 31
leadership practices. municipalities through Municipal March 2021
Audit Support Programme
Approaches towards innovative Innovative Infrastructure financing Infrastructure Financing Instruments facilitated for
financing instruments instruments and processes municipalities by 31 March 2021
identified.
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 Improved municipal infrastructure Municipalities supported in improving their
programme based on the MIIF grants spending for municipalities infrastructure grant spending by 31 March 2021
conference resolutions
www.salga.org.zaMANDATE
STRATEGIC PROFILING
www.salga.org.za4244
OUTPUTS OUTPUT INDICATOR Target
2020 – 2021
Spatial transformation barometer Spatial transformation is monitored Spatial Transformation Barometer for selected cities
for selected cities and towns in municipalities and town develop and published the by 31 March
2021.
Investment tools developed to Municipal investment attraction tools Develop municipal investment attraction guidelines
support municipal investment developed by 31 March 2021
growth including green
infrastructure
Local Government Data Easy access to local governance Upgrade Data Intelligence applications (Municipal
Intelligence Solution developed. data is provided to Local Barometer and SALGA Mobi) by 31 March 2021.
Government.
Municipal Socio-economic Information and insight for improved Conduct data analysis, generate and disseminate
Profiles Generated. municipal decision making information outputs by 31 March 2021
processes provided.
Local Government Risk Profile Local Government Risk is mitigated Local Government Risk Profile Roadmap
Solution and managed. Framework implemented by March 2021.
Innovative solutions and Innovative solutions and Develop, package and publish one (1) SALGA
programmes provided to programmes for municipalities Innovation Publication by 31 March 2021
municipalities
www.salga.org.za4245
OUTPUTS OUTPUT INDICATOR Target
2020 – 2021
SALGA Municipal Awards for Well implemented and managed Implementation of the SALGA Municipal Awards by
local government implemented SALGA Municipal Awards for local 31 March 2021
government by March 2021
To provide and Effective and Unqualified audit opinion for the 100% compliance to PFMA requirements for public
Efficient Administration Support financial year ending 31 March 2021 entities by 31 March 2021
Service for SALGA programme
delivery 100% compliance to SALGA policies and
procedures contributing to an effective and efficient
administration by 31 March 2021
Outcome reports on Partnership agreements 90% - 100% implementation of partnership
implementation of partnership implemented in municipalities agreements with donor communities by 31 March
programmes with donor 2021
communities
Awareness of the progress made Structured Profiling of local Local Government profiled by 31 March 2021
by municipalities in executing government
their constitutional mandates www.salga.org.zaMANDATE
KNOWLEDGE AND INFORMATION
SHARING
www.salga.org.zaOUTPUTS OUTPUT INDICATOR Target 4247
2020 – 2021
Assessment report on primary health Evidence based policy decision on Assessment study on Primary Health Care Services delivery
care services study institutional arrangement for Primary conducted by 31 March 2021
Health Care Service delivery
Assessment of cost implications of Evidence based policy decision on Assessment study on provision of municipal environmental
providing municipal environmental resources allocation for the provision of health services conducted by 31 March 2021.
health services at a required standard municipal environmental health services.
Assessment report on the state of By- Effective mechanism of enforcing An assessment study on the state of By-Law enforcement in
Law enforcement in Municipalities municipal By-Laws Municipalities conducted by 31 March 2021
Assessment report on the existing Effective mechanism of ensuring effective An assessment on the existing arrangement in municipalities
arrangement in municipalities for protection of municipal infrastructure and for protection of municipal infrastructure and assets
protection of municipal infrastructure assets. developed by 31 March 2021
and assets
A comprehensive report on Municipal The state of municipal Transport, Roads Research conducted on the state of municipal transports,
infrastructure. (Transport, Roads, and and Storm water Infrastructure packaged roads, and storm water infrastructure by 31 March 2021
Storm water)
Research report on Local government Lobby for funding mechanisms to be Research conducted on Local Government grant funding for
grant funding for land needs established for municipalities to respond municipal land needs by 31 March 2021.
to land needs
www.salga.org.zaTarget 2020 – 2021
OUTPUTS OUTPUT INDICATOR
4248
Municipalities supported to improve Stakeholders engagements on waste Relevant stakeholders engaged on
waste management services management function in municipalities 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 Dept. of Water and Sanitation lobbied on Proposal identifying legislative gaps is developed and
services the proposed legislative changes by submitted to Department of Water and Sanitation and related
March 2021 inter-governmental structures submitted by 31 March 2021
Economic Master Planning Framework One municipality piloted on Economic Develop an Economic Master plan Framework and pilot in
Master Planning Framework one municipality by 31 March 2021
Dialogue conducted on public Awareness created in municipalities on Convene 1 National Dialogue on Public Participation & ICT
participation and ICT Innovations ICT innovations and public participation Innovations by 31 March 2021
Local government knowledge products Informed, knowledgeable and innovative Development, digitisation and dissemination 08 of knowledge
produced local government sector products by March 2021
SALGA Knowledge Hub managed and update with relevant
content by 31 March 2021
Research aligned to the SALGA Research Generating & Dissemination Produce relevant and high-quality research products in line
organisational strategy and priorities platforms created with SALGA's Research Strategy by 31 March 2021
conducted
Human Resource Management Strategy Improved work environment that enhances Human Resource Management Strategy developed and
high performance approved by 31 March 2021 www.salga.org.zaPART 6
FINANCING THE PLAN
www.salga.org.za50
BUDGET PARAMETERS
www.salga.org.za51
STATEMENT OF FINANCIAL
PERFORMANCE
www.salga.org.za52
REVENUE DISTRIBUTION 2020/21
www.salga.org.za55
STATEMENT OF FINANCIAL POSITION
www.salga.org.zaPART 7
IMPACT OF COVID-19
ON APP 2020/21
www.salga.org.zaCOVID-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.zaMIUNICIPAL RESPONSE
TO COVID-19
www.salga.org.zaAwareness & education
COMMUNITY RADIO
DOOR-TO-DOOR
SOAP DRIVE
www.salga.org.za 2Extra water & sanitation
www.salga.org.zaSustained Sanitising and Deep Cleaning
of Public Facilities
www.salga.org.zaEncouraging compliance
LIQUOR
OUTLETS
CLOSED
STAYING HOME
VISIBLE
POLICING
ROADBLOCKS
www.salga.org.zaInstitutional arrangements
SANITISER
FACE MASKS
SCREENING & TESTING
www.salga.org.zaFISCAL 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.zaFISCAL RESPONSE TO MUNICIPALITIES:
DISASTER RELIEF FUND ALLOCATIONS
PROVINCE MUNICIPALITY FUNDING FUNDING VARIANCE
REQUESTED RECEIVED
EASTERN CAPE Joe Gqabi District R 66, 969, 610 R 3, 785, 000 - R 63, 184, 610
(including Locals)
GAUTENG Midvaal Municipality R 15, 000,000 R 718, 000 - R 14, 282, 000
KWAZULU- Umvoti Municipality R 7, 853, 650 R 757, 000 - R 7, 096, 650
NATAL
LIMPOPO Makhado Municipality R 54, 000, 000 R 149, 000 - R 53, 851, 000
MPUMALANGA Steve Tshwete R 40, 270 000 R 447, 000 - R 39, 823, 000
Municipality
NORTHERN Frances Baard District R 50, 636, 820 R 662, 000 - R 49, 974, 820
CAPE (including Locals)
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.zaPROJECTED CHALLENGES ARISING FROM
COVID 19
LOCAL ECONOMIC • Job cuts and reduced household income will result in local
DEVELOPMENT increase in Poverty and Unemployment;
• Increase in Indigent Registrations
• Projected under recoveries on services rendered (water,
DEBT MANAGEMENT electricity & rates) will affect ability to service current and
outstanding debt, including bulk (Eskom & Water Boards)
• Projected under recoveries will affect cross-subsidisation of
other non-revenue services;
SERVICE DELIVERY • Prioritising COVID-19 response demands reprioritising to the
detriment of broader service delivery
• Expanded Services related to COVID-19 creates local service
LEGACY EXPECTATIONS delivery expectations to be sustained beyond COVID-19
• Technical and infrastructure readiness to convene virtual
GOVERNANCE meetings and public consultation.
www.salga.org.zaANTICIPATED MUNICIPAL SUPPORT REQUIRED
FROM SALGA – IMPACTING 2020/21 APP
LOCAL ECONOMIC • Develop and implement a local government response as a
DEVELOPMENT contribution to the national economic recovery plan
• Introduce debt management plans with a view to determine
DEBT MANAGEMENT affordable payment terms;
• Support to develop voluntary financial recovery plans;
• Review the LGES formula to be more relevant & realistic.
SERVICE DELIVERY • Development Planning and Re-prioritisation support and advice
• Develop long term service delivery sustainability models;
LEGACY EXPECTATIONS • Through DDM lobby for short, medium and long term support in
executing services from national and provincial government
• Fast track the development of a Comprehensive IT
GOVERNANCE Solutions Package for municipalities
www.salga.org.zaIMPACT OF 2018/19 MUNICIPAL AUDIT
OUTCOMES ON APP 2020/21
www.salga.org.zaCOVID-19 IMPACT ON LG REVENUE
(INDIGENT MANAGEMENT)
DORB 2020 p. 99
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.
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