Upper limits for municipal councillors

THABAZIMBI – In the first Municipal council meeting for 2013, held on Thursday 31 January in the municipal council chambers, with only a handful of community members attending the meeting, serious matters including upper limits for councillors and managers’ vacant posts were discussed.

According to the South African Local Government Association (SALGA) in Circular 40/2012 dated 10 December 2012, the upper limits of salaries, allowances and benefits of councillors may only be implemented should the municipality be in a financial position to afford such an increase.

An across the board percentile increase in salaries, allowances and benefits of 5.5% per annum effected retrospectively from 1 July 2012 and the prior determination is repealed with effect from 1 July 2012.

The increase includes the inclusion of mayoral residence as a housing benefit, double travel benefit, new increased cell phone packages, sitting allowances, extension of data cards and introducing risk benefits in terms of the service offerings provided for by the South African Special Risks Insurance Association (SASRIA) for councillors as part of the total remuneration package.

The DA Councillor of Ward 2, Paul Scruton, recommended that this 5.5% increase should only be considered if the municipality can afford it. He said that currently the bigger portion of the budget is appropriated to salaries. He also requested that the meeting be postponed due to the agenda being delivered only two days prior to the meeting instead of seven working days. Scruton also stated that the councillors are yet to receive the Chief Financial Officer’s financial statements for the previous months, thus cannot make an informed decision regarding the upper limits increase.

Councillor Franco Loots also commented that there is a financial problem within the municipality and that the 5.5% upper limits increase is thus not possible. He “humbly proposed” that the upper limits increase be postponed until they receive clarity from the CFO that the municipality can in fact afford it.

According to the SALGA Circular 40/2012, the Municipal Manager should note that they may not implement the upper limits before their councils have considered a report on the upper limits and have resolved on the levels of remuneration which will apply in that municipality. This consideration must occur with regards to the financial year (2012/13) within which the payments will have to be made, and the affordability thereof for municipalities. This implies that the budget for the year in question must reflect the liability to pay the level of remuneration determined by the council and this must in turn be cash funded.

Further, before implementation, it is necessary for a council to consult with the MEC responsible for Local Government in the province, motivating the affordability and demonstrating that the liability has been budgeted for. Failure to follow these steps will result in an adverse audit opinion being expressed by the Auditor General.

ANC Councillor, JM Fischer moved to adopt the motion that the upper limits increase of 5.5% be implemented by no later than the end of March 2013.