MUNICIPAL CAPACITY ASSESSMENT

2018

Dr Kenneth Kaunda

DC40

(NOTE:In this report, data from a wide variety of sources were used. Municipalities were requested to provide information on broad aspects of governance, capacity and the performance of functions. Stats SA data from the population census and municipal censuses (Non-Financial and Financial) were used to determine population size, number of households and service backlogs. Other data were sourced from National Treasury, LGSETA, SARS, CoGTA, SAPS, MDB, etc. for this assessment of capacity. However, given that many municipalities did not provide all the information requested of them, these additional data sources were combined with their own data. All municipalities were also provided with the information contained herein and requested to verify all information in these capacity assessments, and to provide additional information where necessary. Therefore, the MDB takes no responsibility for any inaccurate information and the interpretation thereof.)

Contents

1.Introduction11.1Methodology31.2Additional data sources41.3Comparative analysis41.4The municipal report51.5Overview of municipality52.Environmental situation72.1Demographics102.1.1Population102.1.2Age structure112.1.3Households and density122.1.4Income, tax and employment142.2Land and Human Settlements192.2.1Land claims192.2.2Traditional communities192.2.3Access to housing202.2.4Types of housing212.2.5Land use222.3Infrastructure and Service Provision232.3.1Movement and Transport services262.3.2Education services262.3.3Health services292.4Economic development302.4.1Mining302.4.2Tourism302.4.3Telecommunication infrastructure312.5Other government services infrastructure322.6Environment, Natural Features and Endowments333.Governance assessment343.1Financial overview343.2Voter turnout373.3Municipal staffing384.Municipal Overview of Capacity394.1Staffing information394.2Management overview424.3Financial information434.4Governance464.5Departmental assessment475.Assessment of capacity to perform functions495.1Development and town planning services505.2Technical services535.3Community services566.Conclusion and recommendations606.1.1Updating of information on Powers and Functions606.1.2Identification of capacity requirements to exercise particular powers and functions606.1.3MECs could identify areas in which they need to rationalise the division of powers and functions61Appendix 1: Definitions62

List of figures

Figure 1: Municipal context6

Figure 2: Demographic overview11

Figure 3: Racial breakdown11

Figure 4: Age breakdown12

Figure 5: Number of households and municipal area12

Figure 6: Household size13

Figure 7: Percentage population by density14

Figure 8: Percentage municipal area by density14

Figure 9: Household income15

Figure 10: Tax base16

Figure 11: Employment17

Figure 12: Percentage total employment by sector18

Figure 13: Dependency and inequality18

Figure 14: Land area containing traditional authorities and which were part of homelands19

Figure 15: Percentage of population living in informal settlements20

Figure 16: Density of formal and informal areas20

Figure 17: Percentage of households by tenure21

Figure 18: Dwelling type22

Figure 19: Land cover23

Figure 20: Access to services25

Figure 21: Number of consumers billed25

Figure 22: Road length by road type and surface26

Figure 23: Educational infrastructure per 10 000 population27

Figure 24: Matric pass rate and percentage of youth in school27

Figure 25: Percentage population by level of education28

Figure 26: Active mines and mining licences30

Figure 27: % of land with natural heritage assets30

Figure 28: Access to telecommunications31

Figure 29: General infrastructure32

Figure 30: Audit outcomes35

Figure 31: Financial indicators36

Figure 32: Further measures of financial performance37

Figure 33: Voter turnout and registered voters37

Figure 34: Municipal councillors and employees38

List of tables

Table 1: Land claims19

Table 2: Schools and learners28

Table 3: Key health statistics29

Table 4: Potential impacts of climate change33

Table 5: Staffing levels39

Table 6: General qualifications39

Table 7: MFMA competency40

Table 8: Total days worked41

Table 9: Staff turnover42

Table 10: Senior management42

Table 11: Qualifications of professionals42

Table 12: Expenditure43

Table 13: Income44

Table 14: Creditors44

Table 15: Analysis of rates collected45

Table 16: Free basic services45

Table 17: Meetings held47

Table 18: Protests and petitions47

Table 19: Departments48

Table 20: Grouping of functions49

Table 21: Performance of functions (Development and town planning services)50

Table 22: Financial overview (Development and town planning services)51

Table 23: Staffing overview (Development and town planning services)52

Table 24: Backlog and service delivery (Development and town planning services)52

Table 25: Performance of function (Technical services)53

Table 26: Financial overview (Technical services)54

Table 27: Staffing overview (Technical services)55

Table 28: Backlog and service delivery (Technical services)55

Table 29: Performance of function (Community services)56

Table 30: Financial overview (Community services)57

Table 31: Staffing overview (Community services)58

Table 32: Backlog and service delivery (Community services)59

Acronyms

AG

Auditor-General

Capex

Capital Expenditure

CEO

Chief Executive Officer

CFO

Chief Financial Officer

CoGTA

Department of Cooperative Governance and Traditional Affairs

CSP

Cities Support Programme

DBSA

Development Bank of Southern Africa

DCOG

Department of Cooperative Governance

DHS

Department of Human Settlements

DPME

Department of Monitoring and Evaluation

DRDLR

Department of Rural Development and Land Reform

DTI

Department of Trade and Industry

DWS

Department of Water and Sanitation

EC

Eastern Cape

FBS

Free Basic Services

FET

Further Education and Training

FS

Free State

GAU

Gauteng

GDP

Gross Domestic Product

HoD

Head of Department

HIV

Human Immunodeficiency Virus

ICT

Information and Communication Technology

IDC

Industrial Development Corporation

IDP

Integrated Development Plan

ILO

International Labour Organisation

IUDF

Integrated Urban Development Framework

KZN

KwaZulu-Natal

LGSETA

Local Government Sector Education Training Authority

LIM

Limpopo

MDB

Municipal Demarcation Board

MEC

Member of the Executive Committee

MFIP

Municipal Finance Improvement Programme

MFMA

Municipal Finance Management Act

MIIF

Municipal Infrastructure Investment Framework

MISA

Municipal Infrastructure Support Agent

MM

Municipal Manager

MPAC

Municipal Performance Audit Committee

mSCOA

Municipal Standard Chart of Accounts

MP

Mpumalanga

NC

Northern Cape

NDP

National Development Plan

NEMA

National Environmental Management Act

NT

National Treasury

NUSP

National Upgrading Support Programme

NW

North West

OECD

Organisation for Economic Cooperation and Development

Opex

Operating Expenditure

PGDP

Provincial Growth and Development Plan

PIT

Personal Income Tax

ppsk

persons per square kilometre

RDLR

Rural Development and Land Reform

RSA

Republic of South Africa

SALGA

South African Local Government Association

SANBI

South African National Biodiversity Institute

SAPS

South African Police Service

SARS

South Africa Revenue Service

SDBIP

Service Delivery and Budget Implementation Plan

SDF

Spatial Development Framework

SEZ

Special Economic Zone

SIP

Strategic Infrastructure Project

SPLUMA

Spatial Planning and Land Use Management Act

Stats SA

Statistics South Africa

TB

Tuberculosis

TVET

Technical and Vocational Education and Training

WC

Western Cape

WSDP

Water Service Development Plan

WWTW

Wastewater Treatment Works

ii

1. Introduction

Governance is affected by the management and technical experience available in an organisation. In South Africa, there is ‘unevenness in capacity that leads to uneven performance in local, provincial and national government. This is caused by a complex set of factors, including tensions in the political-administrative interface, instability of the administrative leadership, skills deficits, the erosion of accountability and authority, poor organisational design and low staff morale’[footnoteRef:1]. [1: 2030 National Development Plan]

The Local Government: Municipal Structures Act makes provision in Section 85 for the Municipal Demarcation Board (MDB) to assess the capacity of municipalities and through that provide advice to MECs when they consider changes to the existing division of powers and functions across district and local municipalities. The capacity of municipalities to perform functions is also to be considered by the MDB when redetermining municipal boundaries.

The MDB has prepared numerous capacity assessments over the past decade, in fulfilling its mandate to assess municipal capacity and make recommendations where requested. More recently, these assessments have also included external environmental or socio-economic drivers of capacity.

This project therefore aims to collect and analyse data and information on municipal capacity to perform all municipal powers and functions as set out in Schedules 4 Part B and 5 Part B of the Constitution of the Republic of South Africa. In addition, the project addresses the MDB’s expanded scope of the municipal capacity assessments to include an assessment of the governance and resource/environmental situation in each municipality.

Specifically, the project aims to:

· Allow the MDB to take informed decision when determining and re-determining municipal boundaries.

· Assess the capacity of municipalities to perform all municipal powers and functions as espoused in Schedule 4B and 5B of the Constitution and Section 84 of the Local Government: Municipal Structures Act.

· Collect and provide data and information to be utilised for the determination and redetermination of municipal boundaries.

· Provide information which will allow for the MDB to provide advice to MECs for them to adjust powers and functions between Category B and C municipalities in terms of Section 85 of the Municipal Structures Act.

The overall aim is to provide a national overview of the distribution of powers and functions at a non-metropolitan level, including here an assessment of existing capacity to execute these functions. This data provides a benchmark to better inform particularly MECs on the overall shape of powers and functions across South Africa so that if and when they request the MDB to provide advice on the possible division of powers and functions they can do so informed by the division of functions across South Africa as a whole and within their province in particular.

In order to do this, the project has gathered as much information as possible to examine the capacity of municipalities to perform their powers and functions, within the environmental (economic, social, spatial, etc.) conditions in which they find themselves. This includes information on:

1. Planning capacity, and particularly the role of district municipalities in terms of the legal framework

2. Financial capacity: Evaluation of factors used and sources of revenue, including challenges

3. Delivery capacity: Evaluating the division of powers and delivery of functions relative to backlogs,

4. Administrative capacity, including ICT and human resource profiles

5. Geographical challenges.

The objectives of the municipal reports are to provide an overview of the environmental situation of the municipality, and then to provide a summary of capacity information as provided by each municipality.

1.1 Methodology

In June 2018, municipalities were asked to participate in this project. Information was requested on the degree to which they are both performing their legislated and/or assigned powers and functions, and the existing capacity and competencies in each municipality. Provinces were also requested to assist in this process.

The questionnaire covered three areas:

1. General information about the municipality: This includes contact details, its leadership, budget, services, administration and governance;

2. Senior management details: This section requests information on each of the senior managers;

3. Powers and functions: Information on which powers and functions are being performed by the municipality, and the capacity to do so.

Once the questionnaire was completed, the municipal manager submitted this to the service provider. Data was checked, and queries were addressed with municipalities where necessary. Information pertaining to the environmental situation of each municipality was sourced from relevant government departments or national organisations, such as Stats SA, National Treasury, CoGTA etc.

It was expected that the data could be collected over a six-week period, but, unfortunately, many municipalities have failed to complete this, in spite of extensive communications with municipalities: over 7000 calls received and calls made to municipalities across South Africa encouraging them and assisting where necessary, with almost 2000 emails being sent to municipalities. In addition, all Municipal Managers, Mayors and their offices were contacted to improve response rates. MINMEC had also resolved that COGTA departments should ensure responses were completed by mid-October 2018. In terms of this, on a weekly basis HoDs of COGTA in each province have been contacted providing them with updates and in some cases, this has assisted in improving response rates. Whilst some municipalities provided all the information required, around 20% did not.

1.2 Additional data sources

A wide variety of municipal information was also sourced from organisations such as Stats SA, SARS, LGSETA, National Treasury and the like. Some of these data were used to prepopulate the questionnaire allowing municipalities to both verify the information and/or update it. This data is also presented below in providing a situational overview of each municipality.

1.3 Comparative analysis

Municipalities in South Africa are categorised as being either Category A (Metropolitan Areas) or Category B (Local) within Category C (District) municipalities. Further classifications have been provided such as the Municipal Infrastructure Investment Framework (MIIF) classification. This divides Category B municipalities into four groups made up of the larger ones that exercise more powers to smaller ones, with fewer resources and exercising relatively few powers (B1 through B4). Category C municipalities are divided into two groups based on those which are water authorities and those which are not. Specifically, the MIIF classification for local and district municipalities is as follows[footnoteRef:2]: [2: DBSA, MIIF 7]

· B1: Secondary cities: the 21 local municipalities with the largest budgets.

· B2: Municipalities with a large town as core.

· B3: Municipalities with relatively small populations and a significant proportion of urban population but with no large town as core.

· B4: Municipalities which are mainly rural with, at most, one or two small towns in their area.

· C1: District municipalities that are not water services providers and generally have few service delivery functions.

· C2: District municipalities that are water services providers and often have substantial obligations.

For purposes of benchmarking of the municipalities in the following sections, the MIIF classification provides a useful means of measuring the municipality’s characteristics against other Category B/C municipalities. In all of the sections and subsections below, the information is also compared with benchmarks: District to District, Category B to Category B, etc.

1.4 The municipal report

The objectives of the municipal reports are to provide an informational overview of the environmental situation of the municipality, reviewing the demographic and social context, the economic context, land and human settlements, movement and transport, infrastructure and service provision, and the environment. The municipal reports then provide a review of the governance situation in each municipality, and a high-level review of municipal capacity, looking at general staffing, management, financial and governance information as well as details on capacity by function.

1.5 Overview of municipality

Stats SA provide a useful narrative overview of every local municipality in South Africa[footnoteRef:3]: [3: Stats SA, http://www.statssa.gov.za/?page_id=964]

The Dr Kenneth Kaunda District Municipality is a Category C municipality in the North West Province. It is located 65km south-west of Johannesburg and borders the Gauteng Province on that side. It is the smallest district in the province, making up 14% of its geographical area. The municipality consists of three local municipalities: JB Marks, City of Matlosana and Maquassi Hills.

It is a region with a rich and diverse natural and cultural heritage, with the potential for sustained economic growth. The region is home to some of the most prominent gold mines in the world and one of the oldest meteor impact sites in the world.

The district is serviced by a number of primary roads, with the N12 Treasure Corridor forming the main development axis in the district and serving as a potential concentration point for future industrial, commercial and tourism development.

A detailed map of the municipality is contained below, highlighting major roads, relevant areas of interest such as airports and ports, as well as areas of significant population density.

Figure 1: Municipal context

2. Environmental situation

This section of the report focuses on the broader demographic/social and economic context, physical environment and infrastructural base, employment dynamics etc. of the municipality. Through tables and figures, benchmarks are provided to indicate the challenges and opportunities facing the municipality.

The information is drawn from the following sources, where available:

· The National Development Plan

· Provincial Growth and Development Plans

· Municipal IDPs and SDFs.

· Stats SA:

· Census 2001 and 2011

· Non-Financial Census, 2016 and 2017

· Community and Household Surveys

· Financial Census, 2016 and 2017

· Other data such as National and Provincial GDPs etc., as indicated below

· SARS:

· Personal tax data at a municipal level

· COGTA:

· Senior management

· Amalgamations

· IUDF

· National Treasury:

· S41 reports

· Mid-year and budget assessments where reports have been completed

· Financial Distress information

· State of Local government reports

· Infrastructure data

· Department of Environment:

· SANBI database on municipal environmental information

· Hazard and other Physical environmental databases

· Other information of a geographic character, such as climate, types of vegetation, soil conditions, rainfall patterns, air quality, river systems, etc.,

· Department of Water and Sanitation

· Blue Drop and Green Drop status where available

· Water and sanitation services (Access levels, backlogs, projects underway, plans for the future by all spheres of government, and water catchment areas etc)

· Water and sanitation infrastructure

· Department of Agriculture and Forestry Affairs

· Land use evaluations

· Types of farming e.g. Forestry, fishing and crop, livestock etc. (include the levels and extent of each or their contribution to the economy in the area.

· Existing and future government planned agricultural projects.

· Predominant agricultural products or activities.

· Human Settlements

· Housing projects underway

· Building plans passed

· Access to housing (backlogs, number of people with access to housing)

· Planned housing projects

· Land use patterns and plans

· Justice and correctional services, Safety and Security

· SAPS crime statistics

· Police stations including satellite stations (including policing districts)

· Magisterial districts (including offices)

· Courts (including location)

· Correctional centres

· Transport

· Roads and all transport Infrastructure (e.g. Airports, harbours etc.)

· Commuting (Subsidised bus transport and routes thereof, formal taxi ranks and train services)

· freight services

· Transport plans by all spheres of government

· Department of Basic Education and Dept of Higher Education:

· Matric results

· Examination centres

· Schools

· Learners and educators

· Universities and TVET colleges

· Graduates

· Education districts

· Local Government Sector Education Training Authority

· Skills profiles for municipalities

· Department of Rural Development and Land Reform and Department of Traditional Affairs:

· Land claims

· Traditional communities

· DTI and IDC:

· SIPs

· SEZs

· Plans passed

· Types of industry and the predominant manufacturing products

· Department of Tourism

· Tourism products/tourist attractions

· Contribution to the economy of the municipal area

· Department of Minerals:

· Mining licences

· Operational mines and employment levels

· Eskom

· Access to electricity

· Backlogs and plans for the future

· Electricity infrastructure (location of Power stations, power lines, etc.

· Telkom and other telecommunication companies

· Access to services

· Infrastructure roll out

· Plans for the future

· Department of Health

· Health districts (spatial coverage per municipality)

· Hospitals

· Clinics or health centers

· Plans for the future

· Other sectoral surveys

In the subsections which follow, indicators developed from data provided in these reports is used to describe the broader municipal area.

1.

2.

2.1 Demographics

2.1.1 Population

The figure below contains details of population dynamics within the municipality. This includes the total population and growth rate, the gender breakdown of this population and total number of households. It provides information on the following[footnoteRef:4]: [4: Stats SA: Census]

· Population: The total number of people living within a specified area of jurisdiction;

· Population growth rate: The overall growth rate in population between the 2001 and 2011 censuses;

· Sex Ratio: The sex ratio provides an indication of the gender breakdown in an area, and it is suggestive of the composition of the labour force. Sex ratios will be affected by sex-selective out-migration such as men migrating. Migrant labour-receiving areas usually have higher sex ratio figures (i.e. more males to females) as the migrants are usually male. South Africa’s average sex ratio is around 0,95, that is 95 men to 100 women. Lower sex ratios are found in areas with a higher number of female-headed households, where household sizes are generally larger, with higher dependency levels[footnoteRef:5]. [5: Demographics and Social; Stats SA: Census]

Figure 2: Demographic overview

The following figure further breaks down the broad population by race. It indicates the proportion of people of African origin, as well as other black South Africans (people designated previously as Coloured and Indian) as well as people previously designated as white. Given the history of apartheid, places with generally higher proportions of minorities (such as whites) have been massively advantaged in economic and other terms.

Figure 3: Racial breakdown

2.1.2 Age structure

The distribution of the population by age is also provided in the figure below with age groups including those younger than school-going age (0-4 years), school going (5-19 years), youth (20-29), general working age (30-64) and elderly (over 65 years of age).

Figure 4: Age breakdown

2.1.3 Households and density

In examining the distribution of households, it is important to consider the definition of households by Statistics SA. A household is seen as a group of persons who live together and provide themselves jointly with food or other essentials for living, or a single person who lives alone. Live-in domestic workers and live-in employees are regarded as separate households. This is important in that when one examines consumer units provided by municipalities in the sections below, such units could consist of more than one household.

The following figure indicates the overall number of households in the municipality compared with its area.

Figure 5: Number of households and municipal area

Importantly, though, the relative size of households and the density of population are more useful indicators of human settlements and the extent to which municipalities need to respond to challenges. This is particularly the case for relatively small households (1-2 persons) and large (over 5 persons) households. Both provide challenges for municipal planning and service delivery: small households hold out the possibility, if linked to chain migration, that larger households will come into the municipalities once a person’s employment becomes more stable, and larger households often place an additional strain on the delivery of basic network services. In other words, these data indicate the degree to which there could be migrancy operating, particularly in the larger urban areas where one could find a higher proportion of 1-2 persons households than in other areas. Likewise, larger households could also indicate a degree of mutual aid existing not just for familial reasons, but to cope with the effects of apartheid and unemployment.

The following figure provides information on:

· The proportion of households consisting of one or two persons; and

· The proportion of households consisting of over five persons.

Figure 6: Household size

The figure below highlights population density within the municipality. Population density is a measurement of the number of people living within a physical area. Examining changes to populations living in different densities gives a sense of the change in the municipality in terms of settlement patterns. The OECD has argued that a broad norm on what is rural would be persons living in areas with density below 150 persons per square kilometre (ppsk). For purposes of this analysis, three different density groups have been defined:

· Those less than 500 ppsk (low density and rural),

· 500-1000 ppsk (medium density); and

· Over 1000 (very high) density.

The following two figures then shows both the area occupied by each of these density groups and the percentage of people living in each of the density groups.

Figure 7: Percentage population by density

Figure 8: Percentage municipal area by density

2.1.4 Income, tax and employment

Income levels in the municipality are detailed in the figure below. Whilst this is normally achieved by breaking the population up into quintiles of 20% of the population, given the unequal distribution income in South Africa the use of quintiles will not show the real gap between high and low earners. As a result, a wider range of income distributions is used. The figure examines income distribution across the municipality, through a number of categories of individual income being provided, such as those households with[footnoteRef:6]: [6: Stats SA]

· No income;

· R1-R19600 income per annum;

· R19601-R153800 income per annum;

· R153801-R614000 income per annum;

· > R614000 income per annum.

Figure 9: Household income

The personal tax base of the municipality is also a key economic indicator. This indicator shows the average amount of Personal Income Tax (PIT) paid within each municipal area. PIT is a tax levied on the taxable income (gross income less exemptions and allowable deductions) of individuals and trusts. Most individuals receive their income as salaries or wages, pension or annuity payments and investment income (interest and dividends). Some individuals, such as sole proprietors and partners, may also have business income which is taxable as personal income. PIT is South Africa’s largest source of tax revenue and contributed 35.9% of total tax revenue collections in 2014/15. It contributed 34.5% in 2013/14[footnoteRef:7]. For the 2016 year of assessment the following tax thresholds (i.e. the amount above which income tax becomes payable) existed: [7: Tax Statistics 2015]

· Younger than 65 years – threshold = R73 650 per annum;

· 65 years of age or older – threshold = R114 800;

· For taxpayers aged 75 years and older, this threshold was R128 500.

By 31 March 2014, the Personal Income Tax register had grown 8.8%, compared with the previous year, to more than 16.8 million individuals. Ideally, it should be read also with business tax records, but these are not available.

In the following figure, the total amount of personal income tax generated and paid by individuals within the municipality is detailed. In addition, data on the proportion of taxpayers to the total population is provided. An indicator showing the number of taxpayers, based on the above definition, per 100 persons living in the municipality is also included.

Figure 10: Tax base

The form of employment is also an important indicator. Informal employment identifies persons who are in precarious employment situations irrespective of whether or not the entity for which they work is in the formal or informal sector. Persons in informal employment therefore comprise all persons in the informal sector, employees in the formal sector, and persons working in private households who do not get basic benefits such as pension or medical aid contributions from their employer, and who do not have a written contract of employment[footnoteRef:8]. [8: Stats SA]

The youth unemployment rate refers to unemployed youth, i.e. individuals aged 15 – 24 who are without work, actively seeking work in a recent past period (past four weeks), and currently available for work. Discouraged workers or hidden unemployed are not counted as unemployed or as part of the labour force. Not actively seeking work refers to people who have not taken active steps to seek work (i.e. job searches, interviews, informational meetings etc.) during a specified recent period (usually the past four weeks).

Lastly, here, the unemployment rate is provided showing the number of unemployed persons as a proportion of the number of persons currently active in the labour force. Unemployment refers to individuals without work, who are actively seeking work in a recent past period (past four weeks), and are currently available for work. Persons who did not look for work but have a future labour market stake (arrangements for a future job start) are counted as unemployed[footnoteRef:9]. [9: International Labour Organization]

The following figure provides information on formal to informal employment, the municipality’s unemployment rate, as well as the youth unemployment rate.

Figure 11: Employment

The next figure looks at employment by sector of the economy. The indicator shows the percentage of people employed in the various sectors of the economy. The sectors are an aggregation of the Standard Industrial Classification (SIC) sectors[footnoteRef:10]. The aggregated sectors are: [10: Refer to Stats SA, SIC 7th Classification, October 2012]

· Agriculture, forestry and fishing

· Community and social services

· Construction

· Electricity, gas and water

· Financial and insurance activities

· Manufacturing, mining and quarrying and other industrial activities

· Mining and quarrying

· Other service activities

· Private households

· Transport

· Wholesale and retail trade, transportation and storage, accommodation and food service activities

Figure 12: Percentage total employment by sector

Two indicators of income inequality have been included in this analysis: the municipality’s dependency ratio and the Gini coefficient. The dependency ratio is an age-population ratio of those not in the work force (the dependent part) and those who are working (the productive part). It is used to measure the pressure on the productive population. The Gini coefficient, on the other hand, measures the degree of inequality in a set of data and is frequently used as a method of measuring inequalities in income distribution in a population. The Gini coefficient ranges from 0 (everyone has the same income) to 1 (one person has all the income).

Figure 13: Dependency and inequality

2.2 Land and Human Settlements

2.2.1 Land claims

A land claim is a request for the restoration of a right in land, lodged with the Commission on Restitution of Land Rights. Anyone who was dispossessed of a right in land after 19 June 1913 as a result of past racially discriminatory laws or practices, and who did not receive just and equitable compensation at the time of dispossession, can lodge a claim for the restoration of such a right, or equitable redress[footnoteRef:11]. [11: http://www.ruraldevelopment.gov.za/component/content/article/347-land-claim/re-opening/771-faq#.W2AQ_NIzY2w]

The table below highlights the total area of the municipality under a land claim process.

Table 1: Land claims

Sum of Land Claims

DC40

345,059

NW total

2957,498

SA total

20617,156

2.2.2 Traditional communities

It is important to recognise that the effects of apartheid remain writ large through our country. Historically, traditional authority areas and areas in which homelands were designated were particularly underdeveloped. The following figure indicates a few measures of this underdevelopment through showing:

· The percentage of wards in which there are traditional authorities;

· The percentage of land coverage of the municipality in which traditional authorities are found; and

· The percentage of land in the municipality which was previously part of a homeland.

Figure 14: Land area containing traditional authorities and which were part of homelands

Further information on the details of traditional leaders can be obtained from the National House of Traditional Leaders (www.cogta.gov.za).

2.2.3 Access to housing

One of the most important indicators of backlogs in service delivery is provided through examining the number of people living in informal settlements. Stats SA defines an informal settlement as an unplanned settlement on land that has not been surveyed or proclaimed as residential, with housing that consists mainly of informal dwellings. This is particularly the case in more urban municipalities and the figure below compares the numbers and area occupied by people living in formal and informal human settlements.

Figure 15: Percentage of population living in informal settlements

The following figure then examines population density in formal and informal areas.

Figure 16: Density of formal and informal areas

Secure tenure refers to the right of all individuals and groups to effective protection against forced evictions and is the arrangement under which a household occupies its dwelling. People have secure tenure when there is evidence of documentation that can be used as proof of secure tenure status or when there is either de facto or perceived protection against forced evictions.

The figure below examines security of tenure through an assessment of tenure by ownership type:

· Occupied rent free

· Owned (not yet paid off and mortgaged)

· Paid off

· Rented

Figure 17: Percentage of households by tenure

2.2.4 Types of housing

The figure below looks at the percentage of households by dwelling type. This indicates the type of dwelling that residents live in (except for those living in collective living quarters and other institutions). Dwelling types are classified by Stats SA as follows:

1. Formal Dwellings

a. House or brick/concrete block structure on a separate stand or yard or on a farm

b. Flat or apartment in a block of flats

c. Cluster house in complex

d. Townhouse (semi-detached house in a complex)

e. Semi-detached house

f. House/flat/room in backyard

g. Room/flatlet on a property or larger dwelling/servants quarters/granny flat

2. Traditional Dwelling

a. Traditional dwelling/hut/structure made of traditional materials

3. Informal Dwelling

a. Informal dwelling (shack, in backyard)

b. Informal dwelling (shack, not in backyard, e.g. in an informal/squatter settlement or on a farm)

4. Other

a. Caravan/tent

b. Other and unspecified

Figure 18: Dwelling type

2.2.5 Land use

Land capability is a broad system of categorising land based on issues such as soils, climate, erosion hazard and slope. It considers the risks of land damage from erosion and other causes; and the difficulties in owning land owing to physical land characteristics. Land capability classes are interpretive groupings of land units with similar potentials and continuing limitations or hazards. Land coverage, on the other hand, is the degree to which particular uses dominate the landscape.

The following figure provides a summary of the degree to which the area of the municipality is/has:

· Plantations

· Water bodies

· Mines

· Degraded

· Cultivated

· Built up

· Natural

Figure 19: Land cover

2.3 Infrastructure and Service Provision

Municipalities are often measured by the degree to which they deliver on a set of basic network services: water, sanitation, energy, transport/roads and solid waste/cleansing. This section reviews the degree of access to these areas, including the number of consumer units billed by municipalities.

Service provision

The percentage of households with access to potable water is contained below. In addition, information around access to an improved water source, and the number of domestic and non-domestic users receiving water from the municipality is provided.

Potable water refers to water that is treated or confirmed safe for human consumption. A potable water supply service refers to a service that delivers potable water through a pipe or similar duct that is connected to a network, the supply of which is relatively continuous given that it includes a deposit built for its storage. If a house or group of houses has a ‘mother’ pipe connected either provisionally or permanently; it shall be considered to have access to potable water. “A house shall not be considered to have access to potable water when an individual house or group is served by a conduit system built with for example wood, bamboo, or rubber hose, connected directly to a river, well, or to another house”[footnoteRef:12]. [12: StatsSA]

Access is usually considered to be within 200m of the house, although in the figure below the proportion of households getting access to potable water in their house or ward is measured. The percentage of the population with sustainable access to an improved water source represents the percentage of the population with reasonable access to an adequate supply of safe water in their dwelling or within a convenient distance of their dwelling. Reasonable access to water is defined as the availability of at least 20 litres of water per person a day from a source within one kilometre of the dwelling.

In terms of sanitation, the indicator used by Stats SA refers to the collection, removal or disposal of human excreta and household waste water. Stats SA defines waterborne sanitation as a:

· Flush toilet connected to a sewerage system;

· Flush or pour-flush to piped sewer system, septic tank or pit latrine;

· Ventilated improved pit latrine;

· Pit latrine with slab.

Again, a measure is provided of wastewater provision to both domestic (households) and non-domestic users i.e. commercial, industrial and other facilities.

A high-level overview of access to electricity in the municipality is contained in the figure below i.e. the percentage of households with connections to the electricity. This measure provides information on the level of electricity provision to residents within a municipal area of jurisdiction. This includes the number of domestic and non-domestic users receiving electricity from the municipality.

Regular solid waste collection is defined as having the solid waste picked up from a household, transported and taken to a proper treatment facility (recycling or landfill sites) on at least a weekly basis. Solid waste collection by an entity that is not legally constituted is not included in this definition. The indicator measures solid waste provision to both domestic (households) and non-domestic users, i.e. commercial, industrial and other facilities.

Figure 20: Access to services

Figure 21: Number of consumers billed

2.3.1 Movement and Transport services

Transport infrastructure

Measuring the various types of transportation infrastructure provides information on travel behaviour through the use of cars as a travel mode providing access to work, shopping, school and other community services. This measure can also inform the need for further transport facilities. Unfortunately, detailed information on commuter flows, modal split and the like is not available in a standardised format from which municipalities can be benchmarked. However, the figure below provides information on the extent of road infrastructure, including major roads, the kilometres of road by surface type, and the length of national and provincial roads[footnoteRef:13]. [13: Department of Transport]

Figure 22: Road length by road type and surface

2.3.2 Education services

This section looks at education levels in the municipality. This includes a measure of the level of education, the matric pass rate, and the percentage of the population in the school-aged cohort, that are enrolled in some form of education.

Educational infrastructure (schools and tertiary institutions)

It is also important to reflect on the degree to which municipalities have the same levels of educational infrastructure. Educational infrastructure examines information such as the number of educational facilities in the area. The figure below provides such information including:

· Number of primary schools per 10 000 people[footnoteRef:14] [14: Department of Basic Education]

· Number of high schools per 10 000 people

· Number of tertiary institutions per 10 000 people

Figure 23: Educational infrastructure per 10 000 population

Matric results and learners in school

The figure below details the overall results of the final examination for Grade 12 learners in a school, which is to some degree indicative of the quality of education within different institutions[footnoteRef:15]. It also indicates the percentage of the population in the school aged cohort (between and including ages 5 – 18) who are currently enrolled in education. [15: Department of Basic Education]

Figure 24: Matric pass rate and percentage of youth in school

The following table indicates the number of schools and learners registered in the municipality in 2017.

Table 2: Schools and learners

Schools

Educators

Learners

DC40

201

4492

139415

NW

1473

26420

754799

SA

19559

317152

7877173

Level of education

The figure below provides a measure of the level of education described as a percentage, for each education level including:

· No schooling

· Some schooling

· Complete primary

· Some secondary

· Matric

· Higher education

Figure 25: Percentage population by level of education

2.3.3 Health services

An analysis of information at a district level on some aspects of the state of health in the area has also been completed[footnoteRef:16]. The following variables are included: [16: Naomi Massyn, Ashnie Padarath, Nazia Peer and Candy Day, 2016/17 District Health Barometer, Health Systems Trust]

· PHC expenditure per capita: Provincial expenditure on sub-programmes of DHS plus net local government expenditure on PHC per uninsured population;

· Children under 5 who died of diarrhoea: This is the proportion of children under 5 years admitted to medical centres with diarrhoea who died;

· Children under 5 dying from severe malnutrition: Proportion of children under 5 years admitted with severe acute malnutrition who died

· TB deaths: The percentage of TB clients (all types of TB registered in ETR.net) who died.

· The HIV positive rate: The percentage of clients (including ANC first and re-test clients) who tested positive for HIV; and

· Medical aid schemes coverage: Percentage of population who have medical scheme insurance.

The following figure provides a summary of how the municipality compares against the province and nationally on these indicators.

Table 3: Key health statistics

DM CODE

PHC Exp pc 2016

<5 yrs deaths Diarrohea 2016

<5 yrs deaths Sev Mal 2016

TB deaths 2015

HIV pos 15+ 2016

Med Scheme cov 2016

DC40

1056,92131462819

2,02020202020202

9,375

11,818578281727

7,76629593951601

14,6079792699425

North West

1121,8097453726

3,16874587857021

10,8639934762816

9,52195486583658

7,00135817691109

12,514756033741

Grand Total

1093,38924982994

2,18458895611585

7,26992129624842

7,73058723917573

7,44779736130905

12,8609337977168

2.4 Economic development

2.4.1 Mining

The following figure indicates the proportion of wards in the municipality that have active mines in them, as well as the proportion of the area of the municipality which has potential licences for prospecting.

Figure 26: Active mines and mining licences

2.4.2 Tourism

Tourist attractions and/products

Another area in which municipalities often focus their attention is the tourism sector. The following figure indicates, for example, the proportion of area of the municipality which consists of various categories of land usage which assist in enhancing the tourism potential. These include:

· Percentage local reserves

· Percentage conservation areas, coastal catchments and protected areas

· Percentage forests

· Percentage game reserves

· Percentage national Parks

Figure 27: % of land with natural heritage assets

2.4.3 Telecommunication infrastructure

ICT access to fixed and unfixed lines

Importantly, is the degree to which a municipality’s population is linked into ICT, with the importance reflecting the degree to which a municipality is able to respond to the opportunities of the fourth industrial revolution.

The following figure looks at access to telecommunications. This includes:

· The number of people in the country who have access to land line telephone communication

· The number of people who have access to mobile phone communication. This is different from landline connections in that mobile phones offer other features and modes of communicating, for example, texting. It also allows people to use the phone for access to the internet and provides users with access freely, i.e. without being bound by the location of the telecommunication facility.

· The level of internet penetration in the country per jurisdiction.

Figure 28: Access to telecommunications

2.5 Other government services infrastructure

Some of the social, economic and governmental infrastructure available in the municipality is also highlighted here. The following figure indicates, for example, comparative data on some aspects of the infrastructure found in the municipality, such as:

· Private Hospitals per 100 000 people

· State Hospitals per 100 000 people

· Clinics per 100 000 people

· Police stations per 100 000 people

· Rail length in kms per 100 000 people

· Airports (local and provincial) per 100 000 people

Figure 29: General infrastructure

Military installations

Information on the location and contact details of military installations in each municipality can be found at the following website: http://www.army.mil.za/contactus.htm

Ports of entry

Information on the location and contact details of military installations in each municipality can be found at the following website: http://www.dha.gov.za/index.php/immigration-services/south-african-ports-of-entry

Home affairs and South African Security Services

Information on the location and contact details of Home Affairs offices in each municipality can be found at the following website: http://www.dha.gov.za/index.php/contact-us

2.6 Environment, Natural Features and Endowments

Climate change will have an impact on water, agriculture and many other human activities. Some 39 key impacts have been identified. The next table provides a summary of the key issues noted by municipalities in the district when analysing the impacts of climate change[footnoteRef:17]. These 39 potential impacts and the degree to which they could affect specific districts is recorded. The first column of the table below shows how many of the 44 districts indicated whether the impact needs to be planned for, with the second column showing the percentage of districts so affected. The third column indicates for this district whether or not it rated it as a critical issue for consideration: [17: Department of Environmental Affairs 2018. Local Government Climate Change Support Program (LGCCSP) District Municipality Priority Climate Change Indicators.]

Table 4: Potential impacts of climate change

Climate Change Impact

# Districts

%Districts

DC40

2 Decreased water quality in ecosystem due to floods and droughts

27

61,4

Yes

3 Less water available for irrigation and drinking

28

63,6

Yes

3. Governance assessment

While the first part of each municipal profile contained an overview of the general environmental situation in each municipality (demographic and social context, the economic context, land and human settlements, movement and transport, infrastructure and service provision, and the environment), it is relevant also to assess the municipality’s general governance, through findings such as their audit scores and other financial indicators, voter turnout and municipal staffing information.

3.1 Financial overview

Local government audit outcomes are detailed below and are indicated by the following:

· Unqualified with no findings – The municipality was able to produce financial statements free of material misstatements (material misstatements mean errors or omissions that are so significant that they affect the credibility and reliability of the financial statements); measure and report on their performance in accordance with the predetermined objectives in their IDPs and/or SDBIPs in a manner that is useful and reliable; and comply with key legislation (Score 5 in analysis below).

· Unqualified with findings – The municipality has been able to produce financial statements without material misstatements, but has struggled to align their performance reports to the predetermined objectives to which they had committed in their IDPs and/or SDBIPs; set clear performance indicators and targets to measure their performance against their predetermined objectives; report reliably on whether they had achieved their performance targets; and determine which legislation they should comply with, and implement the required policies, procedures and controls to ensure that they comply (Score 4 in analysis below).

· Qualified with findings – These municipalities face the same challenges as those that were financially unqualified with findings in the areas of reporting on performance and compliance with key legislation. In addition, they were unable to produce credible and reliable financial statements. Their financial statements contain misstatements which they could not correct before the financial statements were published (Score 3 in analysis below).

· Adverse with findings - The financial statements of these municipalities have so many material misstatements that the Auditor-General (AG) disagrees with virtually all the amounts and disclosures in the financial statements (Score 1 in analysis below).

· Disclaimed with findings - Those municipalities could not provide evidence for most of the amounts and disclosures in the financial statements. The AG was unable to conclude or express an opinion on the credibility of their financial statements (Score 1 in analysis below).

· Audit not finalised at legislated date (Not considered in averages).

· New auditee (Not considered in averages).

The figure below provides the audit results for the municipality for the past three financial years: 2014/15, 2015/16 and 2016/17. As indicated above, scores close to 1 indicate findings which are Adverse/Disclaimers, scores around 3 are Qualified and scores close to 5 are Unqualified with no findings.

Figure 30: Audit outcomes

Measures of municipal finances look at financial distress information from National Treasury, covering eight specific areas from the MFMA, with scores attributed to the following eight variables:

· Cash Coverage: this measures the amount of cash on hand a municipality has to meet its monthly payments as and when they fall due. National Treasury suggest that municipalities should have three months of average operational expenditure available at any time.

· Cash Balance: Identifies whether cash shortages / bank overdrafts pose a ‘chronic’ problem for the municipality.

· Reliance on capital transfers: This determines the levels at which municipalities are able to generate own funds to finance revenue generating assets to enhance and sustain revenue generating streams

· Overspending: This measures the overspending of operational budgets and tests the effectiveness of municipal spending in accordance with resource es available to them, what is the credibility of the budget and are municipalities able to adjust expenditure should planned revenue not materialise.

· Underspending of capital budgets: This shows the effectiveness of municipal spending – but also provides an indication of whether municipalities are compromising on capital programmes to resolve cash flow challenges, or whether there are planning deficiencies which are impacting on service delivery.

· Debtors growth – this shows the year on year growth in debtors and provides information on whether the municipality is exercising fiscal effort in collecting outstanding debt. It demonstrates the extent to which financial distress is the result of poor debtor management.

· Debtors as a percentage of own revenue: this shows the revenue management capabilities of municipalities.

· Creditors as a percentage of cash: whether the municipality is able to meet its monthly commitments.

Scores of 1, 2 or 3 are assigned to each municipality in terms of how they score on each variable, with 3 being that they score poorly. These scores are added up and those municipalities scoring between 17 and 24 are deemed to be financially distressed.

Figure 31: Financial indicators

In addition, measures are also provided which detail aspects such as:

· Whether or not a municipality is in financial distress based on these indicators;

· The degree to which a municipality (over the past three years) has underspent its CAPEX;

· Whether or not a municipality is subject to a Section 139 intervention;

· Whether or not the Municipal Finance Improvement Programme operates in the municipality; and

· The total years in which a municipality has been in financial distress.

Figure 32: Further measures of financial performance

3.2 Voter turnout

In terms of governance, the first indicator represents the degree to which voters participate in local elections. This is provided in the following figure, together with an indicator showing the turnout of voters who have registered to vote as a percentage of the voting population (age 19 and above).

Figure 33: Voter turnout and registered voters

3.3 Municipal staffing

The final set of data related to governance in the municipality examines the numbers of municipal councillors and employees, including a focus on gender representation:

· Number of elected councillors

· Women as a percentage of total elected municipal councillors

· Number of municipal officials per 100 000 population

· Percentage of women employed in the municipal workforce

Figure 34: Municipal councillors and employees

3.

4. Municipal Overview of Capacity

4.1 Staffing information

The table below provides an overview of staffing levels in the municipality, including total staff currently employed, approved positions and funded vacancies. The table below provides an overview of staffing levels in the municipality, including total staff currently employed, approved positions and funded vacancies. For example, in this municipality, 93,66% of staff are permanent employees. There is a vacancy rate of 20%.

Table 5: Staffing levels

DC40

Total municipal staff currently employed

205

Total permanent currently employed

192

Total temporary staff currently employed

13

Total approved positions

210

Total funded vacancies

42

Percentage of funded vacancies

20

The qualifications of staff (from technical to postgraduate) are detailed below. 36,1% of staff have some form of tertiary qualification.

Table 6: General qualifications

DC40

Number of staff with postgraduate degrees

6

Percentage of staff with postgraduate degrees

2,93

Number of staff with Bachelors degrees

19

Percentage of staff with Bachelors degrees

9,27

Number of staff with technical qualifications

49

Percentage of staff with technical qualifications

23,9

In 2007, National Treasury introduced minimum competencies for municipal officials responsible for financial and supply chain management. This was done in order to modernise and professionalise financial management in municipalities, in keeping with the principles of accountability, transparency, effective and efficient utilisation of public resources.

The regulations cover the following aspects for the relevant financial and supply chain management positions: minimum higher education qualifications; work related experience, core managerial and occupational competencies and the financial and financial and supply chain management competencies that the relevant municipal officials should have to enable them to discharge their responsibilities under the MFMA and the related reforms.

A structured training programme was introduced in support of the minimum competency requirements for existing and new incumbents in the municipal sector. A graduate internship programme was also introduced and additional financial resources were made available to municipalities in the form of Financial Management Grant over the medium term. This was augmented by additional funding from the donor community, LGSETA and municipal own resources[footnoteRef:18]. [18: National Treasury and CoGTA, Minimum competency levels for municipal officials effective from October 2015, 30 September 2015]

The table below indicates the number of people in the municipality that have completed MFMA competency courses.

Table 7: MFMA competency

DC40

Number of municipal officials that have completed the MFMA Competency 1: Budgetting

12

Number of municipal officials that have completed the MFMA Competency 2: Costing

12

Number of municipal officials that have completed the MFMA Competency 3: Income expenditure

12

Number of municipal officials that have completed the MFMA Competency 4: Ethics

12

Number of municipal officials that have completed the MFMA Competency 5: IG Fiscal relations

0

Number of municipal officials that have completed the MFMA Competency 6: Auditing planning implementation

0

Number of municipal officials that have completed the MFMA Competency 7: Performance management

12

Number of municipal officials that have completed the MFMA Competency 8: Internal control

12

Number of municipal officials that have completed the MFMA Competency 9: Risk management

12

Number of municipal officials that have completed the MFMA Competency 10: ICT and finance

0

The total number of days worked in the municipality is indicated in the table below, as well as details on the total sick days taken in 2016/17.

Table 8: Total days worked

DC40

Total number of days worked by staff as a whole in 2016/17

49950

Total sick days as a whole in 2016/17

1615

Staff turnover, and specifically the total number of resignations and dismissals in 2016/17, are detailed below.

Table 9: Staff turnover

DC40

Total resignations / contract endings in 2016/17

9

Total dismissals in 2016/17

2

4.2 Management overview

The table below provides an overview of senior management in the municipality, including total number of Section 56 positions, as well as the percentage of vacancies in 2016/17 and 2017/18. In this municipality, 16,67% of Section 56 positions were vacant in 2016/17, while 50% were vacant in 2017/18.

Table 10: Senior management

DC40

Total Section 56 positions in the municipality

6

Percentage of Section 56 positions vacant for more than three months in 2016/17

16,67

Percentage of Section 56 positions vacant for more than three months in 2017/18

50

The following table provides information on the number of qualified engineers, planners, accountants and environmental officers.

Table 11: Qualifications of professionals

DC40

Qualified engineers and engineering technologists

1

Qualified planners and planning technicians

0

Qualified accountants

0

Environmental officers

22

4.3 Financial information

Municipalities were asked to provide information on their finances, including expenditure, income, creditors etc.

In this municipality, there has been:

· A 2,02% increase in operating expenditure,

· A 152,36% increase in capital budgets, and

· A 11,77% increase in staffing budgets.

The municipal budget per household rose from R 716,41 in 2016/17 to R 730,87 in 2017/18.

Table 12: Expenditure

DC40

Total estimated operating budget 2017/2018

175805407

Actual operating budget 2016/2017

172328595

Total estimated capital budget 2017/2018

9905000

Total actual capital budget 2016/2017

3925000

Total estimated staff budget 2017/2018

87434836

Total actual staff budget 2016/2017

78228484

% of the budget in 2016/17 that was used for IDP projects

86.48

% of the budget in 2017/18 that is being used for SDBIP projects

48.7

The table below highlights municipal income in 2016/17 and 2017/18. The following is noted:

· There has been a 0% increase in rates income between 2016/17 and 2017/18.

· Grants income in 2017/18 makes up 100% of the municipality’s total income.

Service charges in 2017/18 make up 0% of municipal income.

Table 13: Income

DC40

Estimated rates income for 2017/2018

0

Actual rates income collected for 2016/2017

0

Estimated grant income for 2017/2018

178673000

Estimated grant income for 2016/2017

174440600

Total estimated income for service charges for 2017/2018

0

Total actual income collected from service charges for 2016/2017

0

Municipal creditors are detailed in the table below.

Table 14: Creditors

DC40

Amount owed at year-end to Water Boards for 2016/17 financial year

0

Estimated amount owed to Water Boards currently for 2017/18 financial year

0

Amount owed at year-end to ESKOM for 2016/17 financial year

0

Estimated amount owed currently to ESKOM for 2017/18 financial year

0

Amount owed at year-end for Audit fees for 2016/17 financial year

0

Estimated amount owed currently for Audit fees for 2017/18 year

0

An analysis of rates shows the following:

Table 15: Analysis of rates collected

DC40

Rates collected from residential properties (including Sectional Title) in 2016/17

0

Rates collected from non-residential Properties (Business/Commercial/Industrial) in 2016/17

0

Rates collected from state-owned properties (other than municipal) in 2016/17

0

Rates collected from farming/agriculture properties in 2016/17

0

Rates collected from other properties in 2016/17

0

In terms of national policy, municipalities should provide Free Basic Services to their communities. The table below indicates whether free basic water and electricity is provided, the quantity thereof, and the number of households benefitting from this policy.

Table 16: Free basic services

DC40

Free Basic Services policy (water)

No

Quantity of free basic water

ND

Cost to municipality for free basic water

0

Number of households benefitting from free basic water

0

Free Basic Services policy (electricity)

No

Quantity of free basic electricity

ND

Cost to municipality for free basic electricity

0

Number of households benefitting from free basic electricity

0

4.4 Governance

Governance is defined as the exercise of political, economic and administrative authority in the management of a country’s (municipality’s) affairs at all levels. It comprises the mechanisms, processes and institutions through which citizens and groups articulate their interests, exercise their legal rights, meet their obligations and mediate their differences.[footnoteRef:19] [19: UNDP Governance for Sustainable Human Development, New York, 1997, pp. 2-3. See also the draft Working Consensus Definition of Governance presented to the U.N. Consultative Committee on Programme and Operational Questions ACC/ 2000/POQ/ CRP.20 of 14 September 2000).]

As one indication of governance levels in the municipalities, the following information was requested:

· Number of municipal council meetings

· Number of MPAC meetings

· Number of EXCO/Mayoral Committee meetings

· Number of audit/risk committee meetings

· Number of ward committee meetings

In terms of the Municipal Structures Act, 117 of 1998, Section 18(2), a municipal council must meet at least quarterly. A municipal Council may also establish one or more committees necessary for the effective and efficient performance of any of its functions or the exercise of any of its powers (Municipal Structures Act, 117 of 1998, Section 79). The table below provides an overview of the number of meetings held in 2016/17 and 2017/18.

Table 17: Meetings held

DC40

2016/17

2017/18

Council meetings

13

11

MPAC meetings

30

31

Exco/Mayco meetings

07

05

Audit and risk meetings

06

02

Ward committee meetings

0

0

The number of protests and petitions received by the municipality is detailed below. In this municipality there has been a change in protests and petitions received by the municipality between 2016/17 and 2017/18.

Table 18: Protests and petitions

DC40

2016/17

2017/18

Number of protests and petitions received

0

01

4.5 Departmental assessment

Total budget and staffing information for the three groups of functions (Development and town planning services; Technical services; Community services) are provided in the table below. This is followed by a detailed assessment by function in the following section.

An analysis of data for each department finds the following:

· Development and Planning

· 10,8% decrease in operating budget between 2016/17 and 2017/18

· 96% decrease in capital budget between 2016/17 and 2017/18

· A vacancy rate of 11,11%

· Technical services

· 10,8% decrease in operating budget between 2016/17 and 2017/18

· 96% decrease in capital budget between 2016/17 and 2017/18

· A vacancy rate of 11,11%

· Community services

· 7,44% increase in operating budget between 2016/17 and 2017/18

· 13,02% decrease in capital budget between 2016/17 and 2017/18

· A vacancy rate of 12,12%

Department

Budget

Staffing

2016/17 Operating expenditure

2017/18 Operating budget

2016/17 Capital budget

2017/18 Capital Budget

Total staff

Total vacancies

Staff with undergraduate degrees or above

Staff with technical qualifications

Development and Planning

8710789

7769999

500000

20000

18

2

14

7

Technical services

8710789

7769999

500000

20000

18

2

15

9

Community services

26493521

28463676

1086485

945000

66

8

37

12

Table 19: Departments

5. Assessment of capacity to perform functions

One of the key objectives of these municipal reports is to provide information on the capacity of municipalities to exercise each of their core functions. Information in this section was provided by municipalities and verified by Municipal Managers.

Functions have been grouped into three main areas:

· Development and town planning services

· Technical services

· Community services

Table 20: Grouping of functions

Development and town planning services

Technical services

Community services

· Air pollution

· Building regulations

· Local tourism

· Municipal Airports

· Municipal Planning

· Pontoons, ferries, jetties, piers, harbours

· Trading regulations

· Beaches and Amusement Facilities

· Billboards and Public Advertisements

· Control of public nuisances

· Control of public liquor trading

· Facilities for care, burial of animals, pounds

· Fencing and fences

· Licensing of dogs

· Licensing of public food trading

· Municipal abattoirs

· Noise pollution

· Pounds

· Street trading

· Environment and Nature Conservation

· Vehicle licensing

· Economic Development

· Electricity reticulation

· Municipal Public Transport

· Storm Water Management Systems

· Potable Water Supply Systems

· Sanitation

· Cleansing

· Municipal roads

· Refuse removal, refuse dumps and solid waste disposal

· Street lighting

· Traffic and parking

· Housing

· Municipal Public Works

· Childcare facilities

· Firefighting services

· Municipal health services

· Cemeteries, funeral parlours, crematoria

· Local amenities

· Local sport facilities

· Markets

· Municipal parks and recreation

· Public places

· Agriculture

· Disaster Management

· Libraries

· Traditional Authorities

· Welfare

· Ambulance services

· Museums other than national museums

· Municipal police and security guards

· Other Health Programmes (HIV/AIDS, etc.)

According to Section 156(1) of the Constitution and Section 84(1) and (2) of the Municipal Structures Act, many of these functions are local municipality functions. However, Section 85(1) of the Municipal Structures Act stipulates that the MEC for local government in a province may, subject to the provisions of this section, adjust the division of functions and powers between a district and a local municipality as set out in Section 84(1) or (2) by allocating, within a prescribed policy framework, any of those functions or powers vested –

(a) in the local municipality, to the district municipality; or

(b) in the district municipality (excluding a function or power referred to in Section 84(1)(a), (b), (c), (d) (i), (o) or (p)) to the local municipality.

1.

2.

3.

4.

5.

5.1 Development and town planning services

Table 21: Performance of functions (Development and town planning services)

Authority for function

Provided by

PMS in place

By laws in place

Where is service rendered

Equipment and infrastructure available for function

Local tourism

District

Both

Yes

Yes

Entire Area

No

Municipal Airports

Local

Local

No

No

Entire Area

No

Municipal Planning

District

Both

Yes

No

Entire Area

Yes

Municipal abattoirs

Local

External Provider

No

No

Entire Area

No

Economic Development

District

Both

Yes

No

Entire Area

Yes

The table below provides an overview of budgets for the development and town planning functions.

Table 22: Financial overview (Development and town planning services)

2016/17

2017/18

Operating expenditure

Income

Capital expenditure

Operating budget

Estimated income

Estimated capital budget

Local tourism

550000

0

0

700000

0

0

Municipal Airports

0

0

0

0

0

0

Municipal Planning

4752000

0

0

3465000

0

0

Municipal abattoirs

0

0

0

0

0

0

Economic Development

3408789

3408789

500000

3604999

3604999

20000

Staffing for the development and town planning functions are detailed in the table below.

Table 23: Staffing overview (Development and town planning services)

Staffing

Qualifications (no. of staff)

Staff vacancies

Total staff employed

Full-time

Part-time

Bachelors degree and above

Technical qualifications directly related to function

Local tourism

3

3

0

4

3

0

Municipal Airports

0

0

0

0

0

0

Municipal Planning

7

5

2

7

3

0

Municipal abattoirs

0

0

0

0

0

0

Economic Development

8

8

0

3

1

2

Municipalities were also requested to indicate whether there is a backlog for each function, and if so, the extent thereof. This, together with their own assessment of service delivery and the levels of community satisfaction (f available), are detailed below.

Table 24: Backlog and service delivery (Development and town planning services)

Backlog

Delivery of function

Yes / No

Extent of backlog

Timeframe to address

Ranked assessment of service delivery from 1 (poor) to 10 (excellent)

Community satisfaction

Municipal Airports

No

0

1 year

0

0

Municipal Planning

Yes

Develpment Plans (Integrated Development Transport (ITP), Dolomite Strategy, Spatial Development Framework(SDF))

2 year

6

0

Municipal abattoirs

No

0

1 year

0

0

Economic Development

Yes

Unfunded SMMEs/Cooperatives

4 year

5

None

1.

2.

3.

4.

5.

5.1

5.2 Technical services

Table 25: Performance of function (Technical services)

Authority for function

Provided by

PMS in place

By laws in place

Where is service rendered

Equipment and infrastructure available for function

Electricity reticulation

Local

Local

No

No

Entire Area

No

Municipal Public Transport

Local

External Provider

No

No

Entire Area

No

Potable Water Supply Systems

Local

Local

No

No

Entire Area

No

Sanitation

Local

Local

No

No

Entire Area

No

Municipal roads

Local

Local

No

No

Entire Area

No

Refuse removal, refuse dumps and solid waste disposal

Local

Local

No

No

Entire Area

No

The table below provides an overview of budgets for the technical services functions.

Table 26: Financial overview (Technical services)

2016/17

2017/18

Operating expenditure

Income

Capital expenditure

Operating budget

Estimated income

Estimated capital budget

Electricity reticulation

0

0

0

0

0

0

Municipal Public Transport

0

0

0

0

0

0

Potable Water Supply Systems

0

0

0

0

0

0

Sanitation

0

0

0

0

0

0

Municipal roads

0

0

0

0

0

0

Refuse removal, refuse dumps and solid waste disposal

0

0

0

0

0

0

The table below details staffing information for the technical services functions, including total staff employed, qualifications and vacancies.

Table 27: Staffing overview (Technical services)

Staffing

Qualifications (no. of staff)

Staff vacancies

Total staff employed

Full-time

Part-time

Bachelors degree and above

Technical qualifications directly related to function

Electricity reticulation

0

0

0

0

0

0

Municipal Public Transport

0

1

0

0

0

0

Potable Water Supply Systems

0

0

0

0

Sanitation

0

0

0

0

0

0

Municipal roads

0

0

0

1

2

0

Refuse removal, refuse dumps and solid waste disposal

0

0

0

0

0

0

Municipalities were also requested to indicate whether there is a backlog for each function, and if so, the extent thereof. This, together with their own assessment of service delivery and the levels of community satisfaction (if available), are detailed below.

Table 28: Backlog and service delivery (Technical services)

Backlog

Delivery of function

Yes / No

Extent of backlog

Timeframe to address

Ranked assessment of service delivery from 1 (poor) to 10 (excellent)

Community satisfaction

Electricity reticulation

No

0

1 year

0

0

Municipal Public Transport

No

0

more than 5 years

0

0

Potable Water Supply Systems

No

0

1 year

0

0

Sanitation

No

0

1 year

0

0

Municipal roads

Yes

Poor Maintenance of Existing Roads and Unpaved Municipal Road Network (Stats obtained form RRAMS)

more than 5 years

1

0

Refuse removal, refuse dumps and solid waste disposal

No

0

1 year

0

0

5.1

5.2

5.3 Community services

Table 29: Performance of function (Community services)

Authority for function

Provided by

PMS in place

By laws in place

Where is service rendered

Equipment and infrastructure available for function

Firefighting services

Local

Both

Yes

Yes

Some Urban

Yes

Municipal health services

District

District

Yes

Yes

Entire Area

Yes

Cemeteries, funeral parlours, crematoria

Local

Local

No

No

Entire Area

No

Markets

Local

Local

No

No

Entire Area

No

Agriculture

Local

External Provider

No

No

Entire Area

No

Disaster Management

District

Both

Yes

No

Entire Area

Yes

Traditional Authorities

Local

Local

No

No

Entire Area

No

Ambulance services

Local

External Provider

No

No

Entire Area

No

The table below provides an overview of budgets for the community services functions.

Table 30: Financial overview (Community services)

2016/17

2017/18

Operating expenditure

Income

Capital expenditure

Operating budget

Estimated income

Estimated capital budget

Firefighting services

1185904

0

275737

2876629

0

410000

Municipal health services

6334800

0

140000

1762999

0

85000

Cemeteries, funeral parlours, crematoria

0

0

0

0

0

0

Markets

0

0

0

0

0

0

Agriculture

0

0

0

0

0

0

Disaster Management

10262028

6499750

170748

16054049

0

430000

Libraries

N/A

N/A

N/A

N/A

N/A

N/A

Traditional Authorities

0

0

0

0

0

0

Ambulance services

0

0

0

0

0

0

The table below details staffing information for the community services functions, including total staff employed, qualifications and vacancies.

Table 31: Staffing overview (Community services)

Staffing

Qualifications (no. of staff)

Staff vacancies

Total staff employed

Full-time

Part-time

Bachelors degree and above

Technical qualifications directly related to function

Firefighting services

3

3

20

0

0

0

Municipal health services

39

29

2

19

0

3

Cemeteries, funeral parlours, crematoria

0

0

0

0

0

0

Markets

0

0

0

0

0

0

Agriculture

0

0

0

0

0

0

Disaster Management

6

6

2

3

3

3

Traditional Authorities

0

0

0

0

0

0

Ambulance services

0

0

0

0

0

0

Municipalities were also requested to indicate whether there is a backlog for each function, and if so, the extent thereof. This, together with their own assessment of service delivery and the levels of community satisfaction (f available), are detailed below.

Table 32: Backlog and service delivery (Community services)

Backlog

Delivery of function

Yes / No

Extent of backlog

Timeframe to address

Ranked assessment of service delivery from 1 (poor) to 10 (excellent)

Community satisfaction

Firefighting services

Yes

Appointment of Permanent Staff

3 year

4

0

Cemeteries, funeral parlours, crematoria

No

0

1 year

0

0

Markets

No

0

1 year

0

0

Agriculture

No

0

1 year

0

0

Disaster Management

No

6

0

Traditional Authorities

No

0

1 year

0

0

Ambulance services

No

0

1 year

0

0

6. Conclusion and recommendations

This report serves to provide an overview of both the environmental situation, and documented capacity, of the municipality under review. This has been extracted from information provided by the municipality in the form of responses to questionnaires, as well as additionally sourced information from National Treasury, Stats SA, CoGTA etc., where municipalities did not provide sufficient information.

More detailed capacity conclusions, by municipality and function, are contained in the provincial reports.

Listed below are generic recommendations emerging from the study.

6.1.1 Updating of information on Powers and Functions

· Creation of database of all Gazetted MEC determinations in terms of Division of Powers and Functions

· Creation of database of all assignments and documentation

· Review of all SLAs particularly with ESKOM

· Annual update on what functions are being performed where

· Linked to this, focus on improving the understanding of powers and functions across municipalities. It is clear from the municipal submissions, and lack of budget and staffing data, that there is often a limited understanding of powers and functions. This therefore impacts the MDB’s ability to have an accurate and comprehensive assessment of capacity.

6.1.2 Identification of capacity requirements to exercise particular powers and functions

· The study has indicated that many municipalities are unaware of how different powers and functions are exercised in each municipalities. Given that there are clear variations across provinces both in terms of the location of Powers and Functions (District/Local/Both) and how each function is exercised, working in consultation with municipalities, Provincial COGTAs could define more clearly what it means to exercise each Power and Function so as to be better prepared to engage with provincial and national treasuries around the formulae used for the equitable share and other grants/transfers.

6.1.3 MECs could identify areas in which they need to rationalise the division of powers and functions

· This study has provided a baseline of what functions are being exercised where at a category B and C level across South Africa.

· As indicated above, given that the information is largely based on what municipalities have provided, provinces need to engage in a process to confirm these divisions of powers and functions, editing where needed and could initiate furth