New posts will cost the Sol Plaatje municipality R70m
NEWLY created posts at the Sol Plaatje Municipality will add an additional R70 million onto the city’s budget.
It was pointed out at a Sol Plaatje City Council meeting this week that the newly adopted organogram had 2 701 positions, in comparison to the previous one, which catered for 2 190 positions.
“Only 1 561 posts in the new organogram were funded and filled, with the vacancy rate on funded positions being 42 percent,” a report drawn up by the chief financial officer, Lydia Mahloko, on the costing of the new positions, states.
There is approximately R6.8 million available on the 2017/18 budget for funded vacancies.
“The financial implication of the newly created positions is approximately R70 million,” the report states.
“This amount is only for 147 of the 276 new posts created.”
It was pointed out in the report that the benchmark for employee costs is 27 to 33 percent of operational costs, and this has a direct impact on tariffs since the municipality is fully funded from rates and tariff-based service charges.
“For the municipality to be able to increase its proportion of budget on repairs and maintenance, remain liquid enough to settle its debt as it becomes due (including creditors, bulk services and staff costs), as well as make significant contributions to the capital replacement reserve fund and maintain at least a twomonth cost coverage, controlling growth in personnel costs is necessary.”
The city council has already taken a decision that all positions, other than senior managers, be capped at T17, while senior managers appointed after July 1, 2014 will be remunerated in terms of the upper limits gazetted for the duration of their contracts. The cost of the total organogram is R644 million.
Legal expert
It was pointed out, meanwhile, that the position of a legal expert on labour relations and commercial contracts has become critical and funding is urgently required for this position.
“To date the municipality has spent R4.69 million on legal fees compared with R2.77 million in the 2015/16 financial year.
“This expenditure relates to consultancy, advisory, opinions and litigations.
“It is believed that with an expert appointed on a fixed-term contract, these costs will be reduced significantly and the only costs that will remain will be for representation during litigations.”
The report indicated that the city’s fathers need to take into consideration the budgetary implications of the new positions under the current economic environment, affordability issues as well as the staff establishment size, compared with similar-sized municipalities.
“Performance recognition strategies must be considered to motivate staff to perform and go the extra mile (beyond their job descriptions) rather than falling for pressures to increase personnel numbers and having higher salaries at very low productivity levels.
“Except for cases in legal and engineering services, where there is a clear skills shortage of workforce shortages and where the municipality must respond to the professionalisation of local government initiatives.”
Vacant and funded posts include that of a chief internal auditor and an auditor, a senior human resources officer, a building inspector, market controller, assistant engineer for roads, a housing manager and two housing officer and a customer services manager, while in the traffic department there are five vacancies for traffic officers as well as a vacancy for a senior traffic officer and a superintendent.
The personal health section also has numerous vacancies, including that of a manager for the section, a clinic manager for the Mapule Matsepane Clinic and a nurse.
At a recent Mayoral Committee meeting, it was agreed that due to the implications of personnel costs on tariffs and cost of services, a remuneration policy, needs to be developed to address these issues.
It was further noted that the filling of vacant posts was a challenge and that Mayoral Committee members would ensure that contract workers would be absorbed.