Councillors approve increases for themselves

The Makana council has approved a salary increase for councillors following a gazette issued by the Minister of Co-operative Governance and Traditional Affairs.

In December Minister Sicelo Shiceka announced the revision of the upper limits for the allowances with effect from 1 July 2009.

The Makana council has approved a salary increase for councillors following a gazette issued by the Minister of Co-operative Governance and Traditional Affairs.

In December Minister Sicelo Shiceka announced the revision of the upper limits for the allowances with effect from 1 July 2009.

The increase is at 7% while the Makana Municipality’s budget for allowances was calculated at 11% when its budget was prepared in May 2009. This means that the municipality will be able to implement the increase without exerting an added burden to its operating budget
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The back pay required by Makana Municipality amounts to R196 994 if implemented at the end of this month. For councillors’ salaries the municipality requires R4 283 261 while its budget allocation for salaries is R4 463 390, leaving a surplus of R180 129.

For their transport and phone allowances the required amounts are R1 427 750 and R311 772 respectively, which leaves another surplus of R73 188. The total surplus of R253 317 can be utilised to finance urgent operating expenses and not capital expenses.

Makana Municipal Manager Ntombi Baart told the meeting that on 24 December the municipality had received a circular from Eastern Cape Local Government MEC Sicelo Gqobana which said that the council should get the green light from him before it implements the new salaries.

“Before implementation, it is necessary for a council to consult with the MEC responsible for Local Government, motivating the affordability and demonstrating that the liability has been budgeted for. Failure to follow the above step will result in an adverse opinion being expressed by the Auditor-General,” read the circular.

However, the following must be submitted to Gqobana to enable him to make an informed decision on the request: -A certified copy of the council resolution approving the new salary and allowances of the members of the council.

Attached to the resolution must be a copy of the attendance register of the meeting at which the resolution was taken and an indication of which councillors voted for and against the proposed increases;
-The grading of the council for the purposes of paying councillors’ salaries and allowances icluding how this grading was arrived at.

In short, municipalities are required to indicate their population as well as their income (excluding grants from the national treasury);
-Proof that the 2009/2010 budget of the municipality provides for the increases;
-The percentage of the total budget comprised by the salaries, allowances and benefits of the municipal councillors;
-A table indicating the current salary, allowances and benefits of each category of councillors from the executive mayor through to part-time councillors.

Makana chief financial officer Jackson Ngcelwane reported to the meeting that the municipality’s income for the 2008/2009 financial year was R136- million something which earns it 25 points according to national ratings released by the department of co-operative affairs.

He added that the municipality’s population is less than 100 000 (last official census), and that allows the municipality a further 16.67 points. “The two allocated points added together equals to 41.67, hence the municipality is graded as three,” he added.

He also said that the remuneration to councillors accounts for about 2.9% of the total budget of the municipality as it amounts to R6-million of the total operating budget of R212-million.  The following table indicates the new annual salaries, allowances and benefits:

New annual allowances payable to makana councillors