MUNICIPAL SYSTEMS BILL September 1999

LEGISLATION n Municipal Demarcation Act, 1998 n Municipal Structures Act, 1998 n Municipal Systems Bill (1999) n Property Rating Bill (1999) n Public Finance Management (Local Government) Bill (1999) n Repeal of Local Government Legislation

MUNICIPAL SYSTEMS BILL n Implements White Paper’s vision of developmental local government n integrates core municipal systems such as participation, development planning, performance management, public administration, service delivery, financing

PLANNING MONITORING AND EVALUATION RESOURCE ALLOCATION ORGANISATIONAL CHANGE CYCLE OF TRANSFORMATION

NEW CONCEPT OF MUNICIPALITY MUNICIPAL COUNCIL AND ADMINISTRATION COMMUNITIES, RESIDENTS AND STAKEHOLDERS Chapter 2

PARTICIPATION IS BASIS FOR CORE SYSTEMS INTEGRATED DEVELOPMENT PLANNING BATHO PELE PERFORMANCE MANAGEMENT SERVICE DELIVERY PUBLIC PARTICIPATION Chapter 3

PUBLIC PARTICIPATION n Empowered citizens are the drivers of transformation – involve residents in determining priorities – enable residents to compare performance with other municipalities and alternative service providers – allow residents the choice of service provider – give residents forums to voice grievances Chapter 3

PUBLIC PARTICIPATION n Develop culture of participatory governance n establish mechanisms for feedback and participation n special provisions for disadvantaged n inform residents of mechanisms n build capacity to participate n public admission to meetings Chapter 3

DEFINING EXECUTIVE AUTHORITY REVENUE RAISING PLANNING & TARGET SETTING MONITORING & ADMINISTRATION DETERMINE SERVICE PROVIDER EXECUTIVE POWERS Chapter 4

COOPERATIVE GOVERNANCE n Municipalities must: – Integrate municipal legislative and executive functions with national and provincial policies and programmes – participate in organised local government n Decentralisation coordinated through Minister and MEC n Prevention of unfunded mandates Chapters 2 & 4

DEVELOPMENT PLANNING n 5 year planning cycle linked to term of office n IDP provides framework for more detailed sectoral plans n must adopt plan within 1st year of council’s term n must adopt process for IDP within 2 months n MEC monitors and facilitates integration Chapter 5

DEVELOPMENT PLANNING VISION FINANCIAL PLAN VISION ANNUAL PROJECTS ANNUAL BUDGET INTEGRATED DEVELOPMENT PLAN 25year strategy 5 year plan 1 year plan

LINKING PLANNING TO PERFORMANCE PLANNING n vision n needs n priorities n objectives n strategies n spatial framework n implementation plan n financial plan PERFORMANCE MANAGEMENT n indicators n targets n monitoring n evaluation n communication n change Chapter 6 Chapter 5

REPORTING TO COMMUNITY INTEGRATED DEVELOPMENT PLAN – sets priorities and objectives of community as basis for performance indicators and targets ANNUAL REPORT – analyses performance of previous year – audited financial statements – sets targets for coming year Chapter 6

MONITORING & SUPERVISION n Empowering Council and community n Provincial monitoring linked to municipality’s own performance system n Minister to set minimum standards for – service delivery – provincial supervision n Municipal targets must match minimum standards Chapter 10

IMPROVING PERFORMANCE n Capacity building n management reform n technology n alternative delivery mechanisms n review IDP Chapter 6

BATHO PELE n Identify clients n determine service n establish current service level n set target for service level n determine ways to meet target n monitor performance and review Chapter 7

PUBLIC ADMINISTRATION n Culture of public service n flexibilty and responsiveness n efficient delegations n performance contracts n staff code & establishment n capacity building & establishment n code of conduct Chapter 7

SERVICE DELIVERY OPTIONS n Internal Department n Municipal business enterprise n Service delivery agreement with: – other municipalities – other organs of state – private companies – NGOs or CBOs Chapter 8

SERVICE AUTHORITY n objectives & targets n develop strategies n determine providers n financial framework n tariff policy n monitor & evaluate n regulation SERVICE PROVIDER n operational plan n performance n service delivery n revenue collection n sustainability n accountability Chapter 8

COMPETITIVE PROCUREMENT n For all service delivery agreements with persons other than municipalities n Options – prequalification and competitive bidding – competitive negotiation – solicitation of competing proposals – unsolicited proposals n Minister to regulate selection of process Chapter 8

MUNICIPAL SERVICE DISTRICTS n Internal service districts n Multi-jurisdictional service districts – established by agreement between municipalities – functional efficiency and economies of scale – governing body acts as service authority – agreement determines mechanism for service provision Chapter 8

TARIFF POLICY n Equity n access to basic services n payment linked to consumption n full economic cost & sustainability n surcharges or levies n local economic development n conservation of scarce resources n explicit subsidisation of poor Chapter 8

CREDIT CONTROL n Sound customer management n proper metering & billing n credit control policy n provisions for indigent n termination of services n agreements with employers n by-laws Chapter 9

LEGAL MATTERS n Notices n certificates as evidence n prosecution of offences n fines & bail n service of documents n debt settlement before transfer Chapter 11

BY-LAWS n Legislative procedures n subordinate legislation n publication requirements n standard draft by-laws n municipal code Chapter 4

MUNICIPAL SYSTEMS BILL September 1999