1. CHIEF FINANCIAL OFFICER’S FORUM Councillor Remuneration: Determination of Upper Limits 6 September 2013

2. Table of Content Purpose, Background, Objective Current process followed when assessing applications for councilor remuneration Concerns raised by stakeholders( Councilors, Municipal Managers, Cfo’s, Salga etc.) Suggested process going forward, Conclusion

3. Purpose, Objective and Background Purpose To outline the process followed when assessing applications for councillor remuneration increases, To emphasise the fact that the 2012/13 councillor remuneration process has been officially closed, To outline the suggested process to be followed going forward. Objective To ensure that the remuneration increases are within upper limits, budgeted for and are affordable. Background The Remuneration of Public Office Bearers Act, 1998 (Act No. 20 of 1998) vests the powers to determine the upper limits of the salaries, allowances and benefits of the different members of municipal councils to the Minister for Cooperative Governance and Traditional Affairs.

4. Process followed when assessing applications Sequence of events to assess conformance (DLG and PT Process)

5. Process Followed continued Sequence of events to assess performance (PT process)

6. Concerns raised by Stakeholders Framework not made available to municipalities and relevant stakeholders for their input on time, Inconsistencies identified with the assessment process, Role played by Provincial Treasury during the assessment process not within legislation, Assessment must not be used as a tool to punish municipalities unfairly but must be used objectively and informed by legislation, Councilors from other municipalities resigned because of upper limits not being approved.

7. Suggested Process Going Forward Review and update framework for assessment of “applications for councillor remuneration increases”, to incorporate and address all concerns raised by relevant stakeholders, After finalisation issue the framework to all of the relevant forums (PCF,MM,CFO etc.) for input and review, Roles for Municipalities, Provincial Treasury, Salga and Department of Local Government to be clearly defined, Agreed upon framework to be majorly informed by section 7 (1) of the Remuneration of Public Office Bearers Act 20 of 1998, Municipalities with inherent cash flow challenges, detailed cash flow analysis must be done.

8. Conclusion Councillor remuneration process for the 2012/13 financial year has been officially closed, Municipalities which have implemented upper limits upon being advised otherwise to face consequences, Legal cases/issues raised by Municipalities out the assessment process are being handled by Department of Local Government and feedback will be provided.

9. Thank You