1. BUDGET REVIEW: MUNICIPAL DEMARCATION BOARD AD 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: Corporate Services Committee.
Khosi Tshililo Ramovha
Limpopo
Member: Corporate Services Committee;
Member: Audit Committee;
Member: Boundaries Committee.
Ms Modiehi Molebatsi
Gauteng
Mr Landiwe Mahlangu

5. The Board Ms Nondumiso Gwayi Eastern Cape Member: Audit Committee;
Member: Powers and Functions Committee.
Mr Mpho Mogale
Northern Cape
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;
Board’s 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 Board’s 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
Further investigations on section 21 and 26 8
Section 23 notices published by the IEC 23
Section 23 notices published by the MEC’s 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
Further investigations on section 21 and 26 12
Section 21 notices referred to IEC for section 23 process
Section 23 notices published by MEC’s

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 MEC’s 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.
Divide the national common voters roll into municipal segments.
March 2004
Publish formula for the number of councillors.
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 MEC’s 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
2003/
2004
Moshaweng Municipality (NW1a1) x
North West/ Northern Cape 1

26. Municipalities identified with limited capacity: North West
Municipality Name
Limited
Capacity
2002/
2003
2003/
2004
Moretele Municipality (NW371) X
Moses Kotane Municipality (NW375)
Ratlou Municipality (NW381)
Tswaing Municipality (NW382)
Kagisano Municipality (NW391)
Greater Taung Municipality (NW394)
Molopo Municipality (NW395)
Lekwa-Teemane Municipality (NW396)
North West 8 6

27. Municipalities identified with limited capacity: Eastern Cape
Municipality Name
Limited
Capacity
2002/
2003
2003/
2004
Mnquma Municipality (EC122) x
Ngqushwa Municipality (EC126)
Ntabankulu Municipality (EC152)
Mhlontlo Municipality (EC156
Eastern Cape 4 2

28. Municipalities identified with limited capacity: Free State
Municipality Name
Limited
Capacity
2002/
2003
2003/
2004
Letsemeng Municipality (FS161) x
Naledi Municipality (FS171)
Setsoto Municipality (FS191)
Phumelela Municipality (FS195)
Metsimaholo Municipality (FS204)
Free State 5

29. Munics identified with limited capacity: KZN
Municipality Name
Limited
Capacity
2002/
2003
2003/
2004
Vulamehlo Municipality (KZ211) X
Umzume Municipality (KZ213)
Ezinqoleni Municipality (KZ215)
Mkhambathini Municipality (KZ226)
Indaka Municipality (KZ233)
Imbabazane Municipality (KZ236)
Msinga Municipality (KZ244)
Umhlabuyalingana Municipality (KZ271)
The Big Five False Bay Municipality (KZ273)
Hlabisa Municipality (KZ274)
Mbonambi Municipality (KZ281)
Ntambanana Municipality (KZ283)
Ndwedwe Municipality (KZ293)
KwaZulu/Natal 13 12

30. Municipalities identified with limited capacity: Northern Cape
Municipality Name
Limited
Capacity
2002/
2003
2003/
2004
Mier Municipality (NC081) x
!Kheis Municipality (NC084)
Kgatelopele Municipality (NC086)
Northern Cape 3 1

31. Municipalities identified with limited capacity: Limpopo/Mpumalanga
Municipality Name
Limited
Capacity
2002/
2003
2003/
2004
Greater Tubatse Municipality (CBLC5) x
Makhuduthamaga Municipality (NP03A2)
Fetakgomo Municipality (NP03A3)
Bushbuckridge Municipality (CBLC6)
Maruleng Municipality (NP04A1)
Limpopo/Mpumalanga 5

32. Municipalities identified with limited capacity: Limpopo
Municipality Name
Limited
Capacity
2002/
2003
2003/
2004
Mutale Municipality (NP342) x
Aganang Municipality (NP352)
Limpopo 2 1

33. Municipalities identified with limited capacity: Mpumalanga
Municipality Name
Limited
Capacity
2002/
2003
2003/
2004
Thembisile Municipality (MP315) x
Mpumalanga 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 MEC’s and SALGA, indicating that:
The investigation has been conducted;
The Board’s 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
e’Thekwini Metro
Kwa-Zulu/Natal
Johannesburg Metro
Gauteng
Tshwane Metro
Ekurhuleni Metro
Nelson Mandela Metro
Eastern Cape
Buffalo City Munic (EC125)
King Sabata Dalindyebo Munic (EC157)
Emfuleni Munic (GT421)
Mogale City Munic (GT411)
Klerksdorp Munic (NW403)
North West
Rustenburg Munic (NW373)
Mafikeng Munic (NW383)

37. CONURBATIONS ANALYSED
Municipality
Province
Mangaung Munic (FS172)
Free State
Matjabeng Munic (FS184)
Polokwane Munic (NP354)
Limpopo
Mbombela Munic (MP322)
Mpumalanga
Emalahleni Munic (MP312)
Middleburg Munic (MP313)
Sol Plaatjie Munic (NC091)
Northern Cape
Msunduzi Munic (KZ225)
Kwa-Zulu/Natal
uMhlathuze Munic (KZ282)
NewCastle Munic (KZ252)
Hibiscus Coast Munic (KZ216)

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

40. Challenges 2004/05 Municipal Capacity Assessments
Board does capacity assessments annually in compliance with the MSA;
Focus on assisting the MEC’s 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 Board’s mandate properly;
Budgetary shortfalls with respect to the Board’s core responsibilities:
Assessing capacity of municipalities and advising MEC’s;
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
Board’s 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 Board’s 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
Nil
Support Consultants for investigations and public hearings
R1,060,000
R710,000
NOK500,000

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
Nil
GIS
GIS Support/Mapping
R1,500,000
NOK500,000
R1,000,000
Additional Computer Hardware, software and consumables
R500,000

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
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
R985,000
Travel and Accomodation – Local Hotel
R265,400
R65,400
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