COGTA - Process Plan for Redetermination of Municipal Boundaries

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1. ROLE OF THE MUNICIPAL DEMARCATION BOARD
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A municipality must strive, within its financial and
administrative capacity, to achieve the objects of local
government as set out in section 152 of the
Constitution.
It is for this reason that the Municipal Demarcation
Board embarked on a re-determination of
municipal boundaries in terms of Section 26 of the
Municipal Demarcation Act, No 27 of 1998.
The MDB has in terms of Section 21 of the
Demarcation Act, published the re-determination of
municipal boundaries on the 23 October 2013.
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2. ROLE OF THE MEC
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When the MDB has re-determined a boundary, the Board must send
particulars to the Independent Electoral Commission in terms of
Section 23(1) of the Act.
If the IEC is of the view that the boundary re-determination will not
materially affect the representation of voters in such council, then
the MEC must publish a notice in Provincial Gazette determining the
date from which the determination takes effect.
This Section 23 (2)(b) notice was published in the Provincial
Gazette by the MEC on the 9th May 2014 determining the date of
the next municipal election as the effective date.
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MAJOR RESTRUCTURING (TYPE B)
- A major restructuring refers to a major
amendment to municipal boundaries which either
split or amalgamate municipalities.
- Section 16 notices will be drafted
(amendment of section 12
establishment Notices).
- A restructuring process plan needs to be
adopted by the affected municipalities.
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TYPE B RE-DETERMINATION
The following municipalities are affected by major redetermination:
Split Municipalities
- Vulamehlo: split between Umdoni and Ethekwini
- Ntambanana: split between Mthonjaneni, Mfolozi
and Umhlathuze Municipalities.
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AMALGAMATED MUNICIPALITIES
- Amalgamating Imbabazane and Umtshezi
- Amalgamating Indaka and Emnambithi
- Amalgamating Hlabisa and Big 5 False Bay
- Amalgamating kwa Sani and Ingwe
- Amalgamating Ezinqoleni and Hibiscus Coast
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4. RESTRUCTURING PROCESS PLAN
The following matters have been be included in the restructuring process
plan:
- Establishment of a Municipal Political Change Management Committee at
Municipal Level.
- Establishment of a Municipal Technical Change Management Committee (at
affected municipalities)
- Appointment of a Transformation Manager by Cogta
- Development of directives regarding the following issues:
 filling of vacancies
 Budget and IDP
 PMS
 Organogram
 Office and accommodation
 Transfer and placement of staff
 Delegation
 Rationalization of policies and By-Laws
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SDBIP
Disestablishment of current municipalities
Appropriate type
Legal succession
Assets and Liabilities
Transfer of moveable and immoveable property
Municipal powers and functions
Institutional arrangements
Preparation of financial statements
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SECTION 14(5) NOTICES
Section 14(5) notices in terms of the Municipal
Structures Act have been promulgated.
The following principles have been included in the
Notices :
 Alterations to staff establishments
 Disposal or acquisition of assets
 Conclusion of long term contracts
 Use of reserve capital
 New loan agreements
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5. Principles with regard to split municipalities
 The split wards which are merged with the new municipalities are incorporated into the
structure of the receiving municipality, and as such form part of that municipality as
from the elections.
 The amended Section 12 Notice will accommodate the changes.
 The disestablishment of the split municipalities.
 The distribution and transfer of assets, rights, liabilities, obligations and staff from split
municipalities to receiving municipalities is to take place in accordance with guidelines
as contained in the departmental policy framework.
 The final distribution account must be completed within 90 days of the effective date
and will thereafter be reviewed by Cogta prior to submission to the MEC for approval.
 In the event of the distribution accounts not being finalized within the prescribed
period, Cogta will appoint professional consultants to complete the distribution
account, the costs relating to which will be borne by the affected municipalities.
 Any conflict or dispute arising from the application or interpretation of the policy
framework is to be reviewed by professional consultants appointed by Cogta who will
recommend to the MEC a resolution to such conflict or dispute.
 The decision of the MEC in all matters relating to the policy framework is final and
binding.
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6. Principles with regard to amalgamated municipalities
 Private Law.
As the new municipality is a juristic person with perpetual succession it shall be
able to, under its name, be capable of suing or be sued. All movable and
immovable assets which vested in the disestablished municipalities will vest in
the amalgamated municipality.
 Public Powers and Functions.
All the powers and functions of the disestablished municipalities will vest in the
amalgamated municipality.
 By-Laws.
Any by-law of the disestablished municipalities shall be deemed to be by-laws of
the amalgamated municipality until amended by the amalgamated municipality.
 Administrative Law.
All records, books of account and administrative instruments of the disestablished
municipalities shall fall under the control of the amalgamated municipality.
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7. Structures required for restructuring .
The Department has established Change Management Committees to deal with
amalgamated /split municipalities.
Political Change Management Committee.
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The Political Change Management Committees are to provide overall guidance
within the restructuring process of amalgamating /split municipalities. The
purpose of the committees are to provide political, technical, administrative and
other guidance for the restructuring process and to express on specific policy
matters, to be chaired by the District Mayor or Deputy District Mayor.
Aim
The main aim of the committee would be to support and guide municipalities in
the restructuring process, unblocking blockages where occurring and ensuring
compliance with regard to laid down time frames and legislative requirements.
Members
Mayors from affected municipalities
Two Executive Committee Members in the case of a municipality with a collective
executive system, or in the case of a plenary executive system, two councillors
Speakers from affected municipalities
SALGA (KZN)
A maximum of three Amakhosi as determined by the local House of Traditional
Affairs
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Municipal Technical Change Management Committees.
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The Municipal Technical Change Management Committee drives the restructuring
process at municipal level and needs to ensure that the restructuring process plan
is being followed.
Members
The Committee is to be chaired by the District Municipal Manager
The Municipal managers of the affected municipalities
Heads of Departments.
Unions.
Salga (KZN).
Transformation Manager
Aim.
The Municipal Technical Change Management Committee must ensure that
although municipalities are still autonomous entities when the restructuring
process starts, municipalities are working towards a new structure and all
resolutions passed by the municipality and all actions of affected municipalities
must support the restructuring process.
The major preparatory work for the restructuring is done by the Municipal
Technical Change Management Committees.
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The Municipal Technical Change Management Committees will make
recommendations to the Political Change Management Committee on how daily
activities should be undertaken to facilitate the restructuring. The following
activities and processes must be attended to by the task teams:
 Growth and Development strategy, Integrated Development Plan and Performance
Management.
 Human Resources, Change Management and Internal Processes.
 Finance and ICT.
 Governance and Legal.
 Communications and Stakeholder Management.
 Service Delivery and Infrastructure.
 Prepare and facilitate the approval of MOU’s
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9. Section 12/16 Notices
The MEC will issue a Section 16 Notice amending the existing section
12 Notice, containing the following information at affected
municipalities:
 Existing Section 12 Notice to be repealed.
 Deployment of staff as a result of amalgamations.
 Organogram to be forwarded to the MEC within 60 days.
 Restructuring of new administration.
 What happens to Municipal Managers and Heads of Departments
of disestablished municipalities at date of dis-establishment.
 Transitional arrangements regarding budgeting and financial
reporting.
 Transitional arrangements regarding by-laws, town planning
schemes, policies, delegations and tariffs.
 Bank accounts, investments and cash.
 Transitional arrangements regarding valuation roll.
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 Legal, practical and other consequences of the change needs to be
addressed, which include the following:
• Transfer of assets, liabilities, rights and obligations
• Transfer of administrative and other records
• Number of councilors
• Type of municipality
• Category of municipality
• Boundaries of the municipality
• Number of wards
• Which councilors may be designated as full time councilors
• Disestablishment of affected existing municipalities
• The seat of the municipality
• Powers and functions of the municipality.
The draft notice, once published by the MEC for comment, needs to be
submitted to the councils of all affected municipalities in order to pass a
resolution and approve the formal comments of the municipality on the draft
notice, as well as to Salga.
It is further recommended that municipalities embark on a public
participation process, to inform the public of the boundary change and its
effect on the municipality
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10. Ward delimitation to Election
The MDB will, after consultation with the IEC, de-limit all Metropolitan
and Local Municipalities into wards in terms of Section 4 of Schedule 1
of the Municipal Structures Act.
The MEC is awaiting the formula for the determination of the number
of councillors from the National Minister. Once the formula has been
received the MEC will be in a position to determine the number of
councillors.
An exercise was done using the existing formula and new registered
voters numbers in anticipation of the new formula. This indicated a big
increase in the number of councillors. The MEC is of the opinion that
the new formula should not substantially increase the number o f
councillors.
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Thank you
Dankie
Siyabonga
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