SALGA SPECIAL NATIONAL CONFERENCE 11 September 2012

1. SALGA SPECIAL NATIONAL CONFERENCE 11 September 2012 COUNCILLOR WELFARE AND SUPPORT 1

2. Presentation Outline • 2011/12 Upper Limits Notice & Implementation • Consultative Processes 2011/12 • Proposals for Upper Limits Notice 2012/13 • Update on Once-off Gratuity Payment

3. Upper Limits Notice 2011/12 Certain key features of the notice are the following: • An across the board percentile increase in salaries, allowances and benefits of 5% per annum effected retrospectively from the 1st of July 2011 and the prior determination (i.e. 10 December 2010) is repealed with effect from the 1st of July 2011; • Amending the definition of “total municipal income”. • Amending the definition of “total remuneration package”. • Deleting the inclusion of running and maintenance costs incurred on official business travel up to 500 kilometres per month. • Deletion of the Section 8 (1)(d) of the Income Tax Act, 1962 allowance of R 120 000 per annum. • Increase in cellphone allowances. • Recognition of Chairpersons of Section 79 Committees.

4. CONSULTATIVE PROCESSES 2011 and 2012 Meetings with Minister: 26 April, 25 June Meetings with Commission: 16 May, 26 June Meetings with Parliament: 21 Sept ‘11, 12 Oct ’11, 28 Feb ‘12 PROPOSALS - Gratuity payments; - Review of system of remuneration; - Risk benefits. - Conference outcomes - Review of system of remuneration; - Risk benefits. - Conference Outcomes - Review of system of remuneration; - Risk benefits.

5. PROCESSES FOR 2012/13 25 July ‘12 Independent Commission Promulgates Recommendation ????? Minister’s draft Notice ?????? Minister’s Final Notice PROPOSALS Public Office Bearers must be adjusted upwards by 5.5% per annum. ??????????????????? ???????????????

6. SALGA Proposals for 2012/13 Certain key proposals for the 2012/13 notice are as follows: • Inclusion of new definition for tools of trade; • Amending the definition of total municipal income to be in line with the Remuneration of Public Office Bearers Act; • Introducing new pay scales for Chairpersons of Section 79 Committees; • Extending use of council owned vehicle to Deputy Mayors and Speakers; • Introducing new increased cell phone packages; • Introducing risk benefits extended to councillors at the cost of the municipality; and • Introducing a set of tools of trade.

7. Upper Limits Notice 2012/13 • Inclusion of new definition for tools of trade Reason for Inclusion? The Amendment proposed to give effect to the Tools of Trade promulgated by the Independent Commission on 29 August 2011. New proposed definition:- “tools of trade” means the resources or enabling facilities provided by a municipal council to a councillor to enable effective and efficient fulfillment of his/her duties in the most cost effective manner.

8. SALGA Proposals for 2012/13 Certain key proposals for the 2012/13 notice are as follows: • Inclusion of new definition for tools of trade; • Amending the definition of total municipal income to be in line with the Remuneration of Public Office Bearers Act; Reason for Inclusion? • To be in line with Section 7 of the Remuneration for Public Office Bearers Act 20 of 1998 provides for “the gross income” New proposed definition:- • “total municipal income” means in respect of a metropolitan, local or district municipality the gross income for the 2012 / 2013 financial year of the municipality concerned……..

9. SALGA Proposals for 2012/13 Certain key proposals for the 2012/13 notice are as follows: • Inclusion of new definition for tools of trade; • Amending the definition of total municipal income to be in line with the Remuneration of Public Office Bearers Act; • Introducing new pay scales for Chairpersons of Section 79 Committees; Reason for new pay scales Roles and Responsibilities are not the same as with MMCs. New proposed pay scales:- Whereas Speakers are at 80% of the Mayor or Executive Mayors salary scale and MMCs are at 75%, 70% of the salary is proposed & also to be extended to part-time Chairpersons.

10. SALGA Proposals for 2012/13 Certain key proposals for the 2012/13 notice are as follows: • Inclusion of new definition for tools of trade; • Amending the definition of total municipal income to be in line with the Remuneration of Public Office Bearers Act; • Introducing new pay scales for Chairpersons of Section 79 Committees; • Extending use of council owned vehicle to Deputy Mayors and Speakers; Reason for Extension The Commission’s Tools of Trade confirms the extension. New proposed clause:- Extend use of council owned vehicle to Deputy Mayors & Speakers.

11. SALGA Proposals for 2012/13 Certain key proposals for the 2012/13 notice are as follows: • Inclusion of new definition for tools of trade; • Amending the definition of total municipal income to be in line with the Remuneration of Public Office Bearers Act; • Introducing new pay scales for Chairpersons of Section 79 Committees; • Extending use of council owned vehicle to Deputy Mayors and Speakers; • Introducing new increased cell phone packages;

12. Cell phone packages Reasons for reviewal: Currently a clear separation in terms of the amount allocated for cell phone allowances to full-time mayors of grade 6, all other full-time councillors and part-time councillors. The rationale behind this separation is not clear. Proposed Changes (a) R3146(R3319) per month may be paid to a full-time executive mayor or mayor, deputy mayors and speakers of a municipal council; or (b) R1570 (R1656) per month may be paid to a councillor, other than an executive mayor or mayor deputy mayors and speakers of a municipal council.

13. SALGA Proposals for 2012/13 Certain key proposals for the 2012/13 notice are as follows: • Inclusion of new definition for tools of trade; • Amending the definition of total municipal income to be in line with the Remuneration of Public Office Bearers Act; • Introducing new pay scales for Chairpersons of Section 79 Committees; • Extending use of council owned vehicle to Deputy Mayors and Speakers; • Introducing new increased cell phone packages; • Introducing risk benefits extended to councillors at the cost of the municipality

14. Risk Benefits Reasons for inclusion: In recent times, municipalities in almost every province have experienced so-called community service delivery protests. During these protests councillors find both their person and assets under attack. Some councillors lost or suffered damage to personal assets, others lost their lives. Proposed new Clause In addition to the total remuneration package provided for in items 5 and 8 respectively, a municipality must take out SASRIA cover, or similar risk insurance cover, to provide for the loss of or damage to a councillor’s property or assets arising from any riot, civil unrest, strike or public disorder.

15. SALGA Proposals for 2012/13 Certain key proposals for the 2012/13 notice are as follows: • Inclusion of new definition for tools of trade; • Amending the definition of total municipal income to be in line with the Remuneration of Public Office Bearers Act; • Introducing new pay scales for Chairpersons of Section 79 Committees; • Extending use of council owned vehicle to Deputy Mayors and Speakers; • Introducing new increased cell phone packages; • Introducing risk benefits extended to councillors at the cost of the municipality; and • Introducing a set of tools of trade.

16. TOOLS OF TRADE • No detailed guidance existed on the allocation of tools of trade to councillors or any of the other public office bearer. • Commission embarked on a process in 2010 to review the current tools of trade provided by the different institutions to its office bearers. • SALGA made specific submissions to the Commission in respect of a system of allocation of tools of trade to Municipal Councillors. • Commission finalised and published the Tools of Trade for all public office bearers (29 August 2011).

17. TOOLS OF TRADE 13. (a) A municipal council may extend the following tools of trade to a councillor:- (i) Special needs facilities such as braille readers, customised bathrooms and ramps at municipal offices; (ii) Office space and furniture; (iii) Telephone, Parking bay, business cards, calculators, letter heads, stationary, toner cartridges, diaries and postage costs; (iv) Appropriate mobile technology and multi-digital office including datacards, laptop and or desktop computer, fax, printer / photocopier and scanner; (v) magazine and newspaper subscriptions; (vi) personal and official accommodation security to Executive Mayors orMayors; and (vii) Official accommodation and furniture for Executive Mayors or Mayors.

18. TOOLS OF TRADE 13. (b) Where a municipal council makes available tools of trade in terms of clause (i) above, such a municipal council must determine the exact limit of the actual tools of trade through an appropriate policy framework taking into account accessibility; affordability and cost control; equity; flexibility; simplicity; transparency and accountability and value of tools of trade.

19. Update on Gratuity Payment

20. UPDATE ON GRATUITY PAYMENT

21. THANK YOU