1 / 11

STLM UNDERSTANDING OF FINANCIAL SUSTANABILITY AND COMPETENCIES

IMFO CONFERENCE ACHIEVING SUSTAINABILITY THROUGH FINANCIAL COMPETENCY FROM A MUNICIPAL MANAGER PERSPECTIVE. (A REAL CASE STUDY) MR. WD FOUCHE MUNICPAL MANAGER STEVE TSHWETE MUNICIPALITY 8 OCTOBER 2012 12H00. STLM UNDERSTANDING OF FINANCIAL SUSTANABILITY AND COMPETENCIES.

alana-joyner
Télécharger la présentation

STLM UNDERSTANDING OF FINANCIAL SUSTANABILITY AND COMPETENCIES

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. IMFO CONFERENCE ACHIEVING SUSTAINABILITY THROUGH FINANCIAL COMPETENCY FROM A MUNICIPAL MANAGER PERSPECTIVE.(A REAL CASE STUDY)MR. WD FOUCHEMUNICPAL MANAGER STEVE TSHWETE MUNICIPALITY8 OCTOBER 201212H00

  2. STLM UNDERSTANDING OF FINANCIAL SUSTANABILITY AND COMPETENCIES • “Financial Sustainability” – the municipality ability to manage its resources to continue deliver high quality services to their communities and meet its financial obligations, both now and in the future. • “Financial Competence” - to have the necessary skills, experience and capacity to fulfil the responsibility and exercise the necessary functions and powers.

  3. Background Before 1994 Middelburg Town Council • Financial position sound. • Cash backed accumulated surpluses. • Qualified Departmental Heads with many years experienced. • Payment rate above 98%. • Conventional electricity and water meters read monthly. Mhluzi Town Council • Successful administrator. • Payment rate less than 10% • Flat rate inclusive of all services. • Pre-Paid electricity meters operated by private contractor. • High volumes of electricity theft. • Electricity distribution loss 79% • No water meters existed.

  4. Background 1994 • Middelburg Town Council amalgamated with Mhluzi Town Council (Middelburg TLC) • Strong Political leadership established. • All staff placed on date of amalgamation. • Top Management of both councils retained. • Strategic decisions taken and implemented.

  5. Turnaround strategy 1995 • R5-million invested in infrastructure upgrading. • New CFO appointed with many years local experience. • Water meters installed for Mhluzi and read monthly. • Uniform tariff structure for entire municipality. • Turnaround in payment rate and electricity distribution losses commences, although electricity losses were still very high • All pre-paid electricity meters replaced with “tamper proof” meters. • Easy understandable accurate municipal accounts • Integrity of municipal accounts non negotiable. • Trust relationship between councilors, community and administration firmly establish. 2000 • Wall to wall local government. • Rural Area, Hendrina, and Eskom towns included.

  6. 2001 Hendrina TLC • Financial position chaotic • No Cash Flow • Huge outstanding debts • Payment rate less than 10% • Prepaid operated by private contractor • No records of electricity distribution losses TURN AROUND STRATEGY • Middelburg settle all their debts amounting to +/- R10-million. • Contract with prepayment contractor terminated. • Debt and credit control policies applied. • Install pre-paid meters. • Single Financial System with uniform tariff structure.

  7. From 2001 • Payment rate never less than 98% on an annual basis. • Strong Political leadership. • Same Mayor and most Mayoral Committee Members served for two terms. • Vast Capital investment made particularly in the upgrading of infrastructure in former neglected areas. • Huge amounts of unrecoverable debts written off. • Practical Indigent Policy. • Economic growth which improves rates base.

  8. What was the reason for financial sustainability successes • Strong and enduring political leadership. • A long term trust relationship between top management and political leadership. • A dedicated workforce. • A long standing culture of operating according to proper norms and standards. • Strategic decision making and implementation. • Accountability to community. • Visible Service Delivery on all levels. • Sound Financial Practices

  9. Danger signs for the future • Divisions within councils could undermine the strength of political leadership. • Decision making can become uncertain. • Administrations could become vulnerable. • Enthusiasm can be undermined which in turn could affect the level of service delivery. • Pressure on payment rate and cash flows. • Cost of services escalating at such an alarming rate that it could become unaffordable.

  10. OUR COMMITMENT There are many faces in the municipality contributing to the financial sustainability.

  11. THANK YOU SIYABONGARE A LABOHABAIE DANKIE You are welcome to visit Steve Tshwete Municipality at our Middelburg Offices

More Related