MOSSEL BAY NEWS - The Department of Co-Operative Governance and Traditional Affairs (COGTA) has gazetted the new upper limits of total remuneration packages payable to municipal managers and those who report to them. This takes retroactive effect from 1 July 2018, based on a strategic framework for remuneration of senior managers across all municipalities.
While unions representing municipal workers and the public slamming the latest adjustments to the remuneration of municipal managers and directors reporting to the manager, taxpayers can rest assured that the apparently exorbitant pay hikes do not apply to Mossel Bay.
On 16 April, Ratings Afrika, an independent ratings agency that specialises in ratings and similar opinions gauging the soundness of governance in local government published its annual Municipal Financial Sustainability Index (MFSI) for the financial results of municipalities for their June 2017 financial year.
The index covers a sample of the 100 largest local municipalities and the eight metros.
Mossel Bay and the Swartland (Malmesbury) municipalities were jointly the best scoring local authorities according to research conducted into the financial sustainability of South Africa's third tier of government.
"The differentiating factors between financially stable municipalities compared with weak ones are the skill levels, experience, financial discipline and quality of management under sound governance guidance of the political leadership at municipal level," the Ratings Africa Report states.
Earlier this month both Independent Municipal and Allied Trade Union (Imatu) and SA Municipal Workers Union (Samwu) expressed disappointed and condemned the salary increases for the municipal managers and those directly reporting to them. The unions raised concern about the large gap in income between the lowest paid municipal employee and that of the managers and directors.
Municipal Manager Adv Thys Giliomee explains that municipal salary increases depend on several factors, among others the number of points scored on a score sheet.
"The framework allocates points to municipalities based on the total municipal income (for which Mossel Bay scores 55/56), total population size (for which Mossel Bay scores 4) - as the 2011 national StatsSA figure is used - and the extent to which the municipality is reliant on the equitable share. The more a municipality depends on the equitable share, the higher the score. Considering that Mossel Bay is regarded as jointly the most financially sustainable municipality in the country, the score on this count is only 6.
The total number of points allocated to a municipality are then categorised on a scale from one to ten, which partly determines remuneration levels.
Mossel Bay is scored a category 4 local authority. The salary adjustment is, however, not merely determined by this category. This is further split across a 'minimum', 'midpoint' and 'maximum' level based on the background, tenure and capabilities of individual managers.
Salaries are also determined by the appointment date of the incumbent. In some instances directors were appointed before Regulation 35 of the Local Government: Regulations on Appointment and Conditions of Employment of Senior Managers came into being in January 2014. These directors received the annual increase of 7% in August, along with other municipal employees.
"In certain instances an additional allowance is made for scarce skills, which is included in the total remuneration package of the applicable director," municipal manager Thys Giliomee explained.
Considering that the municipal manager and Chief Financial Officer and another director were appointed since the new regulations came into being, their salary adjustments are far less than that of the other directors. They, in turn, received an average increase of 5.4%.
The salaries of the upper echelon are public knowledge, Adv Giliomee said, indicating that it is reflected in the municipality's annual report and financial statements.
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