MUNICIPAL POWERS AND FUNCTIONS CAPACITY ASSESSMENT 2018 NATIONAL REPORT

Transcription

1 MUNICIPAL POWERS AND FUNCTIONS CAPACITY ASSESSMENT 2018 NATIONAL REPORT 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.

2 Contents 1 Introduction and background Methodology employed Municipal questionnaire Additional data sources Methodological Challenges Comparative analysis The state of local governance Environmental situation Demographics and Social Context Age structure Household size and density Income and employment Land Cover Education services Amalgamation of municipalities Background to the municipal boundary redeterminations: Municipal mergers: Before and after 2016 municipal elections Municipality s Demarcation Process Issues Concluding Comments on Amalgamations Institutional Overview Financial overview State of Governance Engagements with the public Focus on the poor Compliance with key policies Budgetary challenges Individual capacity Political leadership Senior Management ii

3 7.3 Staffing stability Staffing competency Professional associations MFMA Competency National overview of capacity to perform functions Functions for which Minister takes responsibility Shared functions for which MECs take responsibility Local Functions for which MEC takes responsibility Municipal Powers and Functions: Assignments Powers and Functions Summary Conclusions and Recommendations Performance of functions by Municipal Department Human Capacity Infrastructure Budget allocations Recommendations APPENDIX iii

4 List of figures Figure 1: Completion of MDB capacity assessments by MIIF and Province... 5 Figure 2: Map of submissions from local municipalities... 6 Figure 3: Map of municipalities by MIIF type, and breakdown of municipalities per province by MIIF type... 9 Figure 4: Map of Section 139 interventions Figure 5: Map of adverse audits or disclaimers Figure 6: Percentage of total population and land area per province Figure 7: Population growth and sex ratio Figure 8: Map of population growth Figure 9: Provincial Racial breakdown Figure 10: Age breakdown per province Figure 11: Household size Figure 12: Percentage population by density Figure 13: Household income Figure 14: Employment and Unemployment Figure 15: Dependency and inequality Figure 16: Land cover Figure 17: Matric pass rate and percentage of youth in school Figure 18: Percentage population by level of education Figure 19: Audit outcomes Figure 20: Municipalities in Financial Distress by Province Figure 21: Years persistent financial distress Figure 22: Number of ward committee meetings held per local municipality in 2017/ Figure 23: Percent of municipalities per province with a free basic water policy in place Figure 24: Average amounts owed by municipalities to Eskom by province Figure 25: Average percentage of operating expenditure by municipalities on staffing costs Figure 26: Average municipal dependence on grants per province Figure 27: Gender of Municipal Mayors per municipality Figure 28: Municipal Manager and CFO Vacancies by Province iv

5 Figure 29: Average Years Experience for Municipal Senior Management Figure 30: Average years experience for Municipal Managers, Chief Financial Officers and Section 56 Positions Figure 31: Average number of persons retired/ boarded and dismissed per year per municipality by MIIF type Figure 32: Average number of staff by qualification and MIIF type Figure 33: Average number of staff registered with planning, engineering and financial professional bodies by MIIF type Figure 34: Provincial Breakdown of Ministerial authorised functions performed by Local or District municipalities Figure 35: Average staff numbers per function Figure 36: Capex and Opex 2017/18 budgets per ministers functions Figure 37: Average operating and capital budgets for each of the functions per municipality Figure 38: Number of municipalities undertaking Local Functions Figure 39: Number of municipalities performing local functions by province Figure 40: Average operating and capital budgets for each of the functions Figure 41: Average staff allocated to each of the functions Figure 42: Performance of Schedule 4A and 5A functions by municipalities Figure 43: Provincial totals for the performance of Schedule 4A and 5A functions by municipalities 92 Figure 44: Performance of all functions Figure 45: Performance of planning and economic functions Figure 46: Performance of technical functions Figure 47: Performance of community functions Figure 48: Overall split of full time staff Figure 49: Adequately skilled staff Figure 50: Vacancies Figure 51: Development and planning staff Figure 52: Development planning population to staff Figure 53: Adequately skilled staff Figure 54: Development and planning skilled staff Figure 55: Technical services staff Figure 56: Technical services population by staff member v

6 Figure 57: Adequately skilled staff Figure 58: Technical services skilled staff Figure 59: Community services staff Figure 60: Community services population to staff member Figure 61: Adequately skilled staff community services Figure 62: Community services skilled staff Figure 63: Differences between total number of functions performed across all municipalities and the number with infrastructure Figure 64: Total capital and operational budget splits for 2017/ Figure 65: Capital and Operating budgets development and town planning services Figure 66: Capital and Operating budgets technical services Figure 67: Capital and Operating budgets community services Figure 68: Summary of performance of function Municipal abattoirs Figure 69: Summary of performance of function Local Tourism Figure 70: Summary of performance of function Municipal Airports Figure 71: Summary of performance of function Municipal Planning Figure 72: Summary of performance of function Air Pollution Figure 73: Summary of performance of function Building Regulations Figure 74: Summary of performance of function Pontoons, ferries, jetties, piers, harbours Figure 75: Summary of performance of function Trading Regulations Figure 76: Summary of performance of function Beaches and Amusement Facilities Figure 77: Summary of performance of function Billboards and Public Advertisements Figure 78: Summary of performance of function Control of public nuisances Figure 79: Summary of performance of function Control of public liquor trading Figure 80: Summary of performance of function Facilities for care, burial of animals, pounds Figure 81: Summary of performance of function Pounds Figure 82: Summary of performance of function Fencing and fences Figure 83: Summary of performance of function Licensing of dogs Figure 84: Summary of performance of function Licensing of public food trading Figure 85: Summary of performance of function Noise pollution Figure 86: Summary of performance of function Street trading Figure 87: Summary of performance of function Environment and Nature Conservation vi

7 Figure 88: Summary of performance of function Vehicle licensing Figure 89: Road length by road type and surface Figure 90: Summary of performance of function Municipal roads Figure 91: Access to weekly refuse Figure 92: Summary of performance Refuse removal, refuse dumps and solid waste Figure 93: Summary of performance of function Municipal public works Figure 94: Summary of performance of function Municipal Public Transport Figure 95: Access to electricity Figure 96: Summary of performance of function Electricity Reticulation Figure 97: Access to potable water Figure 98: Summary of performance of function Potable Water Supply Systems Figure 99: Access to flush toilets Figure 100: Summary of performance of function Sanitation Figure 101: Summary of performance of function Storm Water Management Systems Figure 102: Summary of performance of function Cleansing Figure 103: Summary of performance of function Street lighting Figure 104: Summary of performance of function Traffic and parking Figure 105: Dwelling type Figure 106: Summary of performance of function Housing Figure 107: Summary of performance of function Cemeteries, funeral parlours, crematoria Figure 108: Summary of performance of function Firefighting Services Figure 109: Summary of performance of function Markets Figure 110: Summary of performance of function Municipal Health Services Figure 111: Summary of performance of function Childcare facilities Figure 112: Summary of performance of function Local amenities Figure 113: Summary of performance of function Local sport facilities Figure 114: Summary of performance of function Municipal Parks and Recreation Figure 115: Summary of performance of function Public places Figure 116: Summary of performance of function Agriculture Figure 117: Summary of performance of function Disaster Management Figure 118: Summary of performance of function Libraries vii

8 Figure 119: Summary of performance of function Traditional Authorities Figure 120: Summary of performance of function Welfare Figure 121: Summary of performance of function Ambulance services Figure 122: Summary of performance of function Museums other than national museums Figure 123: Summary of performance of function Municipal police and security guards List of tables Table 1: Section 139 interventions Table 2: Dysfunctional Municipalities Table 3: Changes to Category B Municipalities Table 4: Summary of mergers and incorporations Table 5: Municipal Managers Table 6: Chief Financial Officers Table 7: Meetings held Table 8: Ward committee meetings and average protests Table 9: Free basic services Table 10: Compliance with policies Table 11: Budgets Table 12: Political leadership Table 13: Senior management Table 14: Staffing stability Table 15: Staffing competency Table 16: Professional associations Table 17: MFMA Competency Table 18: Major trading services functions Table 19: Ministerial Authorised functions performed by Local or District municipalities Table 20: Shared functions (MEC responsibility) Table 21: Number of municipalities undertaking shared functions (MEC responsibility) Table 22: Number of municipalities undertaking shared functions per province viii

9 Table 23: Functions for MEC s responsibility Table 24: Municipalities administering Schedule 4A or 5A functions Table 25: Departmental groupings Table 26: Staffing across sectors and provinces Table 27: Adequate levels of skilled staff Table 28: Vacancies Table 29: Staff allocation by province Table 30: Technical services full time staff Table 31: Community services staffing Table 32: Capital and operating budgets ix

10 Acronyms AG Capex CEO CFO CoGTA CSP DBSA DCOG DHS DPME DRDLR DTI DWS EC FBS FET FS GAU GDP HoD HIV ICT IDC IDP ILO IUDF KZN Auditor-General Capital Expenditure Chief Executive Officer Chief Financial Officer Department of Cooperative Governance and Traditional Affairs Cities Support Programme Development Bank of Southern Africa Department of Cooperative Governance Department of Human Settlements Department of Monitoring and Evaluation Department of Rural Development and Land Reform Department of Trade and Industry Department of Water and Sanitation Eastern Cape Free Basic Services Further Education and Training Free State Gauteng Gross Domestic Product Head of Department Human Immunodeficiency Virus Information and Communication Technology Industrial Development Corporation Integrated Development Plan International Labour Organisation Integrated Urban Development Framework KwaZulu-Natal x

11 LGSETA LIM MDB MEC MFIP MFMA MIIF MISA MM MPAC mscoa MP NC NDP NEMA NT NUSP NW OECD Opex PGDP PIT ppsk RDLR RSA SALGA SANBI SAPS SARS SDBIP Local Government Sector Education Training Authority Limpopo Municipal Demarcation Board Member of the Executive Committee Municipal Finance Improvement Programme Municipal Finance Management Act Municipal Infrastructure Investment Framework Municipal Infrastructure Support Agent Municipal Manager Municipal Performance Audit Committee Municipal Standard Chart of Accounts Mpumalanga Northern Cape National Development Plan National Environmental Management Act National Treasury National Upgrading Support Programme North West Organisation for Economic Cooperation and Development Operating Expenditure Provincial Growth and Development Plan Personal Income Tax persons per square kilometre Rural Development and Land Reform Republic of South Africa South African Local Government Association South African National Biodiversity Institute South African Police Service South Africa Revenue Service Service Delivery and Budget Implementation Plan xi

12 SDF SEZ SIP SPLUMA Stats SA TB TVET WC WSDP WWTW Spatial Development Framework Special Economic Zone Strategic Infrastructure Project Spatial Planning and Land Use Management Act Statistics South Africa Tuberculosis Technical and Vocational Education and Training Western Cape Water Service Development Plan Wastewater Treatment Works xii

13 1 Introduction and background 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 1. 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 requested by MECs who are considering changes to the existing division of powers and functions across District and Local municipalities. The Minister of COGTA is assigned responsibilities for the allocating the major trading services functions (water, sanitation, electricity) and health services. 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. The overall aim here 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. These data provide a benchmark to better inform National Development Plan 1

14 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 information 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 main intention guiding this work is for the MDB to develop a database with as much information as possible which could be used for their own purposes as well as to guide the three spheres of government in executing their responsibilities, from the division of powers and functions (in the case of the Minister and MECs of COGTA) to benchmarking across municipalities. It should also be noted that this report and the study itself focusses primarily on category B and C municipalities as these municipalities are where the division of powers and functions is found. This national report therefore summarises these data and includes: Chapter 1: This provides the introduction. Chapter 2: A description of the methodology employed and challenges faced in analysing the data which comes from municipalities and a number of national studies by StatsSA, LGSETA, National Treasury and the like; Chapter 3: A summary review of the governance situation across municipalities in South Africa; Chapter 4: A summary collation of the environmental assessments developed for municipalities, reviewing the demographic and social context, the economic 2

15 context, land and human settlements, movement and transport, infrastructure and service provision, and the environment. Chapter 5: A summary analysis of the amalgamation of municipalities, drawing largely on municipal responses and analysis; Chapter 6: A review of the Institutional arrangements at a municipal level; Chapter 7: A summary of individual capabilities in municipalities; Chapter 8: A summary of the existing division of Powers and Functions across the country, comparing the location of these functions with municipalities across South Africa; and Chapter 9: A summary of conclusions and recommendations. 3

16 2 Methodology employed 2.1 Municipal questionnaire The intention of the MDB is to create a database of municipal capacity information which also contains within it data from other sources on broader environmental/resource contexts. In order to do this, a questionnaire was formulated so that such information could be gathered online. 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. 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. 2.2 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 4

17 information and/or update it. These data is also presented below in providing a situational overview of each municipality. 2.3 Methodological Challenges Methodological challenge 1: Municipal responsiveness It was expected that these data could be collected over a six week period, but, unfortunately, many municipalities have failed to complete these data 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 s 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 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. The adjacent figure provides an indication of the status of completion by municipalities by their MIIF type and Province. Completion status by MIIF type Number of municipalities Number of municipalities Not Start.. Started Finished A B1 B2 B3 B4 C1 C2 Completion status by Province % 18% 35% 41% 49% 43% 48% 89% 35% 32% 32% 45% 45% 64% 23% 73% 27% Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape Figure 1: Completion of MDB capacity assessments by MIIF and Province The figure provides a breakdown across provinces and MIIF categories of the percentage of municipalities which, some four months after being requested to do so, had provided such information, had provided only limited information or had simply not even started the process of providing such data. Appendix 1 provides the list of each of these municipalities in the province and the status of responses. The map below illustrates the state of submissions for local municipalities. 5

18 Figure 2: Map of submissions from local municipalities Status of submissions Finished Started Not Started In many cases, too, information provided was quite poor and significant efforts have been made to try and verify these data using other secondary sources, such as from StatsSA s Non-Financial and Financial Censuses, National Treasury information, the Community Surveys, LGSETA s database and the like. In addition, all municipalities have continually been asked to confirm/amend the information collated for their municipality. Using the data collected from municipalities, and including information from a variety of secondary sources, draft reports were prepared and sent to each municipality, requesting that they edit these data. Many municipalities have responded positively and this will become an ongoing process as the MDB takes over the database and continues to update it. It should be noted that as these capacity assessments are ongoing, and in order to improve responsiveness, a mechanism should be found to possibly link the provision of information to the performance scorecards of Municipal Managers. 6

19 2.3.2 Methodological Challenge 2: Understanding Powers and Functions. A second challenge arises from the Constitutional Schedule of allocated powers and functions. Almost all municipalities have clearly shown that they do not organise their service delivery in terms of an institutional framework which responds to all elements contained in these schedules. Whilst it is easy for them to indicate if they have the authority and/or perform major trading services like water, electricity, sanitation and transport, they find it far more difficult to respond in cases like whether or not they perform services like Beaches and Amusement facilities. Whilst not all municipalities have beaches, even something like amusement facilities may cause confusion and as will be shown in the section describing each individual power and function, in cases like these the municipalities actual response rates is far lower, with many simply not responding. It is recommended that DCOG develop a framework which reviews the Powers and Functions schedules and/or provides guidance for municipalities on how these should be dealt with. This matter has recently become all the more important given that with ongoing technological changes, it has become increasingly difficult to have a clear understanding of where municipal powers and functions begin and end. This matter has also become complicated as municipalities generate electricity from solid waste, or they transmit energy, etc., all of which are not issues which could have been through when the original division of powers and functions was contemplated Methodological challenge 3: Reconciling databases A third challenge arises from the fact that there are existing records from key national institutions which may well contradict the information provided by municipalities. For example, StatSA now produce annually two censuses the Financial Census and Non-Financial census and these contain information on particularly powers and functions of the major trading services. National Treasury too is driving the mscoa process which ultimately will allow for comparisons across municipalities to be made. This can be done even using existing budgets which shows income from trading services and expenditure on major powers and functions. 7

20 Overall, it should be noted that in spite of an extension of time and considerable request being made of municipalities, not all municipalities have responded on all questions which amounted to over 2000 bits of information which needed to be responded to. This non-responsiveness is in part due to the fact that municipalities are often unable to disaggregate for each function exactly how many staff execute that function and/or how much money is spent on Operational and Capital requirements to execute each function. Caution must therefore be taken in interpreting the information contained in the tables which follow, particularly in the subsections dealing with information on powers and functions in particular. It must be noted that the intention of the MDB in this process is to create a database which will continually be updated as municipalities further refine their responses. This report therefore focusses on the results from responding municipalities as at December 2018, and on an ongoing basis these data will be updated. In tables which follow, blank cells simply indicate that no information had at the end of December 2018 been provided on that matter. 2.4 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 largely representative 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 2 : B1: Secondary cities: the 19 (9%) local municipalities with the largest budgets. B2: 26 (12%) municipalities with a large town as core. B3: 101 (49%) municipalities with relatively small populations and a significant proportion of urban population but with no large town as core. 2 DBSA, MIIF 7 8

21 B4: 59 (29%) Municipalities which are mainly rural with, at most, one or two small towns in their area. C1: 23 (52%) of the district municipalities that are not water services providers and generally have few service delivery functions. C2: 21 (38%) of the 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. Figure 3: Map of municipalities by MIIF type, and breakdown of municipalities per province by MIIF type Municipalities and Provinces by MIIF type Eastern Cape Free State Gauteng Number of municipalities KwaZulu-Natal Limpopo Mpumalanga 14 North West Northern Cape Western Cape MIIF Group A B1 B2 B B4 C1 C

22 3 The state of local governance In terms of the Municipal Structures Act, capacity is defined as having reasonable administrative, financial and human resources, and infrastructure to perform each of the constitutional functions assigned to a municipality. In this context it also includes leadership, governance and oversight capacity by councillors and senior management of municipalities, and all municipal staff in general. Over the past eighteen years, though, since the advent of democratic local government, many municipalities have simply not been able to perform their functions adequately. In the worst case scenario, Section 139 of the Constitution has had to be invoked to bring in capacity to stabilise governance. In only the last seven years nationally, for example, the following municipalities have had Section 139 invoked, with some having had more than one intervention: Table 1: Section 139 interventions Province CODE Municipality Eastern Cape EC104 Makana Eastern Cape EC122 Mnquma Eastern Cape EC123 Greater Kei Eastern Cape EC133 Inkwanca Eastern Cape EC139 Enoch Mgijima Eastern Cape EC145 Walter Sisulu Free State Free State Free State Free State Gauteng KwaZulu- Natal KwaZulu- Natal KwaZulu- Natal KwaZulu- Natal KwaZulu- Natal FS181 Masilonyana FS194 Maluti-a-Phofung FS205 Mafube FS284 Metsimaholo GT421 Emfuleni DC21 DC23 DC24 DC27 Ugu uthukela Umzinyathi Umkhanyakude KZN223 Mpofana KwaZulu- Natal KwaZulu- Natal KwaZulu- Natal KwaZulu- Natal KwaZulu- Natal KwaZulu- Natal KwaZulu- Natal KwaZulu- Natal KwaZulu- Natal KwaZulu- Natal KwaZulu- Natal Limpopo Limpopo Limpopo KZN237 Imbabazane KZN238 Indaka KZN242 Nquthu KZN245 Umvoti KZN253 Emadlangeni KZN261 Edumbe KZN263 Abaqulusi KZN272 Jozini KZN275 Mtubatuba KZN436 Dr. Nkosazana Dlamini- Zuma KZN437 Inkosi Langalibalele LIM361 Thabazimbi LIM367 Mogalakwena LIM368 Modimolle-Mookgopong 10

23 Mpumalanga MP312 Emalahleni Mpumalanga MP325 Bushbuckridge North West DC38 Ngaka Modiri Molema North West North West North West NW392 Naledi NW393 Mamusa NW397 Kagisano Molopo North West NW372 Madibeng North West NW403 Matlosana North West NW374 Kgetleng-Rivier North West NW404 Maquassi Hills North West NW382 Tswaing North West NW405 JB Marks North West North West North West NW383 Mahikeng NW384 Ditsobotla NW385 Ramotshere Western Cape Western Cape WC041 Kannaland WC045 Oudtshoorn Figure 4: Map of Section 139 interventions Of course, and often in addition to this, the measure used most commonly to measure poor governance are the annually produced audit (financial and performance) results. In the most recently available 2016/17 audit, the following are municipalities which have either not been able to have their audits finalised, or which have also ended up with adverse findings or disclaimers: 11

24 Figure 5: Map of adverse audits or disclaimers The Minister of COGTA recently undertook a comprehensive analysis of the state of local governance and identified 87 municipalities which are distressed or dysfunctional, which require urgent intervention. These municipalities were categorised in different ways as indicated in the following figures: Table 2: Dysfunctional Municipalities by focus area The intention of beginning the description of municipal capacity with a listing of particularly challenged municipalities is in part to provide perspective on how much still needs to be done to create the conditions under which normal, constitutionallydefined local government should operate. Improving municipal capacity is not the panacea to solving all the challenges facing local government. Poverty, 12

25 unemployment, corruption, poor leadership, lack of resources, the continuing effects of racism and so many more factors also continue to bedevil the environment under which developmental local government should operate. At the same time, there are significant areas of challenge which municipalities must address on an ongoing basis, including: Good financial management (and performance); Improving the capacity to plan, deliver, operate and maintain infrastructure; Improving the quality of infrastructure and nursing aged infrastructure; Addressing infrastructure carrying capacity; Providing effective infrastructure operations and maintenance. Government spends over R2.5 billion per year on various forms of capacity building and support for local government. This includes funds allocated through conditional grants and other programmes. The non-grant programmes being implemented to improve the capacity of municipalities to deliver services include: The work of the Municipal Infrastructure Support Agent in deploying skilled technical personnel to municipalities, as well as providing training and systems for planning infrastructure delivery and maintenance. The Municipal Finance Improvement Programme which deploys financial management expertise to municipalities and the provincial treasuries responsible for monitoring municipal budgets. The National Upgrading Support Programme under the Department of Human Settlements, which assists municipalities to develop plans for informal settlement upgrading. The Cities Support Programme managed by National Treasury which supports metros to improve their planning and performance so that they are able to deliver services in ways that optimise economic growth and reverse apartheid spatial development patterns. The Integrated Urban Development Framework, which is led by the Department of Cooperative Governance, provides a framework for managing urbanisation and this is complemented by specific capacity support provided to intermediate cities. 13

26 Each sector department also provides support and advice to municipalities on their specific sector. For example the Department of Water and Sanitation is responsible for reviewing the Water Service Development Plan of every municipality that is a water services authority. The Inter-Ministerial Task Team on Service Delivery, which is chaired by the Minister of Cooperative Governance and Traditional Affairs, was established to coordinate the work of government in improving the capacity of municipalities to deliver services. It consists of Ministers from the following Departments: COGTA; National Treasury; Human Settlements; Energy; Water and Sanitation; Roads and Transport; Environmental Affairs; Health; Basic Education; RDLR; DPME and Sports and Recreation, as well as SALGA and DBSA. Their key focus is to monitor service delivery across South Africa, and particularly in the 57 priority municipalities where there is greatest developmental need and economic impact. Across all municipalities, there are well over CAPEX projects totalling over R70 billion each financial year which are presently being implemented in these municipalities. These programmes of monitoring and support are primarily coordinated provincially with provincial Departments of DCOG playing a major role in this regard. In the sections which follow, the focus will be on describing the existing capacity in municipalities to perform the powers and functions presently being exercised by local government. An integrated approach will be taken to draw out the key dimensions of capacity as noted by the MDB: Individual capacity: The technical, managerial, leadership and generic skills, knowledge, attitude and behaviour accumulated through forms of education, training, experience, networks and values. Institutional capacity: The potential and competency found within the municipality, which includes human resource (combined individual capacities), financial resources and governance, physical resources (infrastructure), strategic leadership and planning, organisational purpose, orientation, institutional memory, confidence, partnerships, powers and functions, policies and regulations (by laws), support systems, structures, operational processes and systems (planning, designing, procurement, management, financing, 14

27 construction, documenting, reporting, implementation, performance management systems, IT systems etc). Environmental/resource capacity: Environmental capacity refers to the environment and conditions necessary for establishing capacity at individual and institutional level. It is these factors that often impacts on the performance of municipalities. It includes factors such as technological, social, economic (economic drivers), geographic, natural endowments (resources) and cultural aspects etc. In the sections which follow an overview of some of the key environmental/resource issues is described. 15

28 4 Environmental situation This section of the report focuses on the broader demographic/social, economic, environmental, infrastructural and governance base of the country as a whole. The information collected is drawn from the following sources: Stats SA: o Census 2001 and 2011 o Non-Financial Census, 2016 and 2017 o Community and Household Surveys o Financial Census, 2016 and 2017 o Other data such as National and Provincial GDPs etc., as indicated below SARS: o Personal tax data at a municipal level COGTA: o Senior management o Amalgamations o IUDF National Treasury: o S41 reports o Mid-year and budget assessments where reports have been completed o Financial Distress information o State of Local government reports o Infrastructure data Department of Environment: o SANBI database on municipal environmental information o Hazard and other Physical environmental databases 16

29 Department of Water and Sanitation o Blue Drop and Green Drop status where available Department of Agriculture and Forestry Affairs o Land use evaluations Human Settlements o Housing projects o Building plans passed Justice and correctional services, Safety and Security o SAPS crime statistics o Police stations Transport o Roads and other infrastructure Department of Basic Education and Dept of Higher Education: o Matric results o Examination centres o Schools o Learners and educators o Universities and TVET colleges o Distance to higher learning o Graduates Local Government Sector Education Training Authority o Skills profiles for municipalities Department of Rural Development and Land Reform and Department of Traditional Affairs: o Land claims o Traditional communities DTI and IDC: 17

30 o SIPs o SEZs Department of Minerals: o Mining licences o Operational mines Other sectoral surveys In the subsections which follow, indicators developed from some of the data provided in some of these reports is used to describe the broader national context. 18

31 4.1 Demographics and Social Context The figure below shows how the national population is spread between the different provinces and the breakdown of land area by each province. Figure 6: Percentage of total population and land area per province Percentage of total population and land area per province Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape 12.57% 5.09% 10.42% 7.79% 6.74% 2.15% 11.28% 19.88% 24.08% 1.49% 13.84% 10.63% 7.73% 10.30% 6.27% 8.59% 10.60% 30.54% 0M 2M 4M 6M 8M 10M 12M 14M 16M 0K 100K 200K 300K 400K Population Area Km The diagram below indicates the average population growth rate of the different provinces. 3 The figure shows the average population growth rates and sex ratios across municipalities. 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 labourreceiving 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 4. 3 Stats SA: Census 4 Demographics and Social; Stats SA: Census 19

32 Figure 7: Population growth and sex ratio The population growth is illustrated spatially in the map below. Figure 8: Map of population growth Population Growth Population growth -37.6% 81.7% The following figure further breaks down the population by race for each province. 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. 20

33 Figure 9: Provincial Racial breakdown 4.2 Age structure The distribution of the population by age is provided in the figure below. Figure 10: Age breakdown per province 4.3 Household size and density The relative size of households and the density of population are 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 21

34 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. And 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 figure below provides information on the proportion of households consisting of one or two persons; 3-5 persons and households with more than five persons. Figure 11: Household size The figure below highlights population density for each province. 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); ppsk (medium density); and 22

35 Over 1000 (very high) density. Figure 12: Percentage population by density 4.4 Income and employment Income levels per province 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 5 : No income; R1 - R income per annum; R19601-R income per annum; > R income per annum. 5 Stats SA 23

36 Figure 13: Household income 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 6. The youth unemployment rate refers to unemployed youth, i.e. individuals aged 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 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 7. 6 Stats SA 7 International Labour Organization 24

37 The following figure provides information on the average rates of the following across municipalities, at a provincial and national level: formal to informal employment, the unemployment rate, as well as the youth unemployment rate. Figure 14: Employment and Unemployment Income inequality can be measured in different ways. Two indicators have been included in this analysis: the average rates of the following across municipalities, at a provincial and national level: 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 15: Dependency and inequality 25

38 4.5 Land Cover The following figure provides a summary of the degree to which the land area of the province is/has: Plantations Water bodies Mines Degraded Cultivated Built up Natural Figure 16: Land cover 4.6 Education services This section looks at education levels in the province. 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. 26

39 4.6.1 Matric results and learners in school The figure below details the average results across municipalities (by province) 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 8. It also indicates the average municipal percentage of the population in the school aged cohort (between and including ages 5 18) who are currently enrolled in education (by province). Figure 17: Matric pass rate and percentage of youth in school Level of education (from no schooling to graduates) 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 8 Department of Basic Education 27

40 Figure 18: Percentage population by level of education 28

41 5 Amalgamation of municipalities 5.1 Background to the municipal boundary redeterminations: The Municipal Demarcation Act of 1998 requires a clear process to be undertaken in demarcating and re-demarcating boundaries. Most importantly, municipal demarcations must improve the economic, social, administrative and financial sustainability of municipalities, bringing together people in geographical units so that they can largely live, work, shop and play in the same municipal area. In each case in which municipal boundaries are changed, whether it is a small technical change to align cadastre with boundaries, to large-scale mergers, the MDB must consider various legislated criteria (contained in Sections of the Act) to ensure their re-demarcation meets the objectives for local government as laid down in the Constitution. Major events in the demarcation of municipalities, in order to create a more coherent, rational, non-racial and integrated system of municipal government with municipalities encompassing single tax bases was created, with people living, working and shopping in roughly the same municipality, can be summarised as follows: 1999: the MDB created six single-tier Category A Municipalities and divided the rest of the country into Category C (District) and B (Local) municipalities. o The number of municipalities was reduced from 843 to 284. o The new system had six Category A (metropolitan) municipalities, 47 district municipalities and 231 local municipalities. 2008: the MDB commissioned a further investigation into metropolitan municipalities with a view to categorising more Category A municipalities. o Two additional Category A municipalities were designated for the 2011 elections: Buffalo City and Mangaung. 2011: A second set of more comprehensive redeterminations were completed in time for the municipal elections. 29

42 o These included two larger mergers, including the amalgamation of Metsweding District Council and Tshwane Metropolitan municipality (and a few additional farms), as well as the merger of Kagisano Local Municipality (NW391) with Molopo Local Municipality (NW395). 2016: In the most recent period of boundary redetermination, from 2011 culminating in the 2016 local government elections, the overall number of municipalities was reduced from 278 to 257 municipalities, but with significant changes made to many boundaries. In broad terms, the boundary changes in this period can be classified as: o No changes: where there were no changes to municipal boundaries; o Slight changes: where the boundary change was not considered significant; and o New or merged: where either a new municipality was created or two or more municipalities or major parts of a municipality were merged. Today, the 257 municipalities consist of eight Category A, 205 Category B and 44 Category C municipalities. Some 22 of these new municipalities which came into effect after the August 2016 elections, were newly merged municipalities, and another 74 municipalities had slight changes to the boundaries of the municipalities. Some 49 municipalities were involved in these 22 major mergers/incorporations. The significant reduction in the number of municipalities between 2011 and 2016 resulted from two processes: Just under half of these mergers resulted from processes prior to 2013 where often MECs requested the MDB to consider creating more viable municipalities and then In 2015 the remainder arose from the Minister of COGTA conducting an assessment across the whole country on the functionality and viability of municipalities. He invoked Section 22(2) of the Demarcation Act for a redetermination of certain municipalities in the country. In terms of the 2011 municipal boundaries, only 112 out of the 226 Category B municipalities (the 2011 municipal boundaries) did not have their boundaries changed. This meant that of the 114 municipalities that did change, some 72 had relatively small changes made and the remaining 42 municipalities were reduced to only 21 30

43 municipalities (22 fewer municipalities and one new entity), through mergers or the disestablishment of an existing municipality and its area partitioned off to other existing municipalities. The following table indicates the degree of change of category B municipal boundaries. Table 3: Changes to Category B Municipalities Category by Province New Merged % Slight % None % Grand Total EC 4 12, , ,6 31 FS 0,0 5 27, ,2 18 GT 1 16,7 0,0 5 83,3 6 KZN 6 14, , ,5 43 LIM 7 31,8 7 31,8 8 36,4 22 MP 1 5,9 3 17, ,5 17 NC 1 3,8 6 23, ,1 26 NW 1 5, ,2 4 22,2 18 WC 0,0 7 29, ,8 24 Grand Total 21 10, , ,6 205 Overall, then, the redeterminations between 2011 and 2016 have led to: Disestablished municipalities: These are municipalities which have either merged with others or been divided up and amalgamated with others; Unchanged municipalities: These are municipalities where there were no changes made to their boundaries between 2011 and 2016; Slightly changed municipalities: These are municipalities which essentially stayed as they were except for an area being gained or lost; New or merged municipalities: These are municipalities where there were significant changes made either through two municipalities merging, or a significant portion of one disestablished municipality being added to its area or in the case of Collins Chabane municipality (LIM345), a completely new municipality was created. 31

44 5.2 Municipal mergers: Before and after 2016 municipal elections This section details some general points, drawn from an analysis of the 20 mergers/incorporations which occurred in the period. Most importantly, the analysis uses indicative data and aims to examine the degree to which the municipalities/areas being merged are similar or different in terms of a number of factors: Population size and land area changes; Settlement patterns, including degree of urbanisation and density; Governance arrangements, such as the change in number of voters per councillor; Economic base, such as size, growth sectoral split and the like; Infrastructural needs; Financial viability; Annual audits; Capex; and Senior management, such as the degree of permanence of the Municipal Manager and Chief Financial Officer. These areas allow for a more complete understanding of what the implications of mergers have been and what this means for the sort of challenges facing the newly merged municipalities 9. These data allowed for a quantitative understanding of what the characteristics were of each of the municipalities which were being merged, disestablished and/or incorporated. 9 Information draws largely on SALGA s Demarcation Study, together with data from COGTA, Stats SA 2001 and 2011 Census, National Treasury s State of Local Government Reports, Municipal budgets, StatsSA s non-financial and financial censuses, AGSA reports, LGSETA s sectoral skills reports and SARS personal income tax records. 32

45 5.2.1 Merging Populations And Area At the outset it should be indicated that in all of the redemarcations the MDB considers a complex set of factors and so there is not one or a few reasons for each amalgamation. In many of the cases, it is clear that there were serious problems in at least one of the affected municipalities in terms of overall governance, service delivery and/or lack of an economic base. Very rarely were issues such as political representation suggested as reasons for mergers even though in almost all mergers, where a large municipality merged with a small one, the latter ended up having fewer councillors than before. Clearly, merging municipalities or incorporating major parts of one municipality into another leads to potentially quite significant changes to the population and area to be administered by the new municipality. Across the 20 municipalities being considered, the changes ranged quite significantly. Many of the mergers are of municipalities which are quite small in population terms but large in area terms. For example, Mier has only just over 7000 people, but a land mass area of over square kilometres, doubling the size in area of //Khara Heis, but only marginally increasing the population of the newly merged Dawid Kruiper municipality. In many cases, smaller rural areas are merged with larger (in population terms) municipalities. Here, ethekwini and Umdoni have shared portions of the former Vulamehlo municipality, Ray Nkonyeni merged with Ezinqoleni and umhlathuze combined with parts of Ntambanana. Thirdly, a number of the municipalities are also losing population, possibly due to migration and/or increasing urbanisation. This has meant that many smaller municipalities, and particularly those without a rates base, have become even more financially unviable. For example, both Nkonkobe and Nxuba have lost population between 2001 and 2011 and they have been merged to form Raymond Mhlaba. Finally, in some cases, more urbanised municipalities have been merged. The largest such example includes the former Randfontein and Westonaria becoming Rand West City and one also has the situation where Mookgopong and Modimolle have combined in Limpopo. The following table indicates the population and area of the merged municipality together with the area, population and population growth rate of the previous municipalities. As may be seen around one-third of the former municipalities 33

46 had negative population growth rates, one-third had moderate growth rates and onethird had medium- to high growth rates. Table 4: Summary of mergers and incorporations CURRENT PREVIOUS B Enoch Mgijima EC Tsolwana EC ,29 Inkwanca EC ,53 Lukhanji EC ,91 B Walter Sisulu EC Maletswai EC ,40 Gariep EC ,55 A Mangaung MAN Naledi (Fs) FS ,52 Mangaung MAN ,80 B Rand West City GT Randfontein GT ,87 Westonaria GT ,79 A ethekwini ETH ethekwini ETH ,40 B Umdoni KZN Vulamehlo KZN ,70 Umdoni KZN ,45 B Ray Nkonyeni KZN Ezinqoleni KZN ,08 Hibiscus Coast KZN ,59 B B Raymond Mhlaba Inkosi Langalibalele EC Nkonkobe EC ,12 Nxuba EC ,26 KZN Umtshezi KZN ,39 Imbabazane KZN ,26 B Alfred Duma KZN Emnambithi/ Ladysmith KZN ,31 Indaka KZN ,26 B The New Big 5 Hlabisa KZN The Big 5 False Bay KZN ,99 B Dr Nkosazana Dlamini Zuma Hlabisa KZN ,83 KZN Ingwe KZN ,52 Kwa Sani KZN ,86 B Blouberg LIM Blouberg LIM ,29 Aganang LIM ,70 34

47 CURRENT PREVIOUS B Molemole LIM Molemole LIM ,02 B Polokwane LIM Polokwane LIM ,75 B Dawid Kruiper NC Mier NC ,83 //Khara Hais NC ,99 B JB Marks NW Ventersdorp NW ,63 Tlokwe NW ,81 B B Modimolle- Mookgopong Fetakgomo- Greater Tubatse LIM Mookgopong LIM ,18 Modimolle LIM ,74 LIM Fetakgomo LIM ,29 Greater Tubatse LIM ,51 B City of Mbombela MP Mbombela MP ,46 Umjindi MP ,46 B Musina LIM Musina LIM ,90 B Thulamela LIM Mutale LIM ,83 B Makhado LIM Thulamela LIM ,36 B Collins Chabane LIM Makhado LIM ,40 B Dr Beyers Naude EC Camdeboo EC ,40 Ikwezi EC ,64 Baviaans EC ,11 B umhlathuze KZN umhlathuze KZN ,65 Ntambanana KZN ,31 What does appear to be quite common in all of these cases, is that mergers have occurred between, on the one hand, quite small and sparsely populated municipalities, but which on the other hand are contiguous to a larger, usually better resourced municipality. This situation gets exacerbated with increasing urbanisation and depopulation of some rural areas. It should be noted, though, that there are no doubt other contextual issues which have influenced such redemarcations, and in sub- 35

48 sections below one finds poor governance and service delivery being found in at least one of each of the merged municipalities. This undoubtedly influences the MDB in its decision-making process Merging Settlement Realities A second set of observations can be drawn through analysing the broad settlement patterns contained in each of the municipalities involved in mergers, including: o The degree of urbanisation: measured either in percentage terms (as builtup area) or the area of high density (including average density in such areas greater than 500 persons per square kilometre); o The size of each municipal population as well as its population growth between censuses. Whilst each of the mergers had its own specific contexts to be dealt with by the MDB, some of the general points to be drawn from this are as follows: o The degree of urbanisation varied significantly between and within municipalities being merged. For example, in the case of Maletswai and Gariep, both were highly urbanised, whilst in the case of Fetakgomo and Greater Tubatse both former municipalities were not urbanised at all. However these differ with the cases of the highly urbanised ethekwini and the less urbanised Umdoni taking over separate parts of the former very rural Vulamehlo. o The degree of urbanisation masks the fact that even in non-urbanised areas, people live in relatively high densities. For example, the area (in square kilometres) containing over 500 persons per square kilometre varies markedly from The Big Five False Bay (0,11 sq. kms) and KwaSani (1,42 sq. kms) having small areas of high densities compared with ethekwini having over 1160 square kilometres at such higher densities. o The densities within such areas of high density also vary markedly across all municipalities. Often such settlements are informal settlements in which the demands for urban services end up being greater than in more settled areas. 36

49 These data again reinforce the fact that there was significant differentiation across municipalities being merged. In many of the demarcations, surrounding municipalities which are functionally linked to a larger more urbanised municipality have been incorporated or merged into the larger municipality. As is indicated below, these larger municipalities often have a greater economic base than the smaller municipality New Governance Arrangements The mergers and/or incorporations finalised by the MDB have had an impact on governance, particularly on the number of municipal council seats and the ratio of registered voters to councillors. In order to analyse this, comparisons were made between the 2011 and 2016 elections in terms of voters per councillor in the municipalities which then merged. Some of the trends are: o Generally speaking, the number of registered voters per councillor increased over the five year period for all municipalities. o In the case of Category A mergers/incorporations, the differential between the old voter/councillor ratio was greatest. For example, in Mangaung, before Naledi merged with Mangaung, there were 1677 voters per councillor but after the merger, the voter to councillor ratio changed to 4252, an increase of 250%. Similarly, in the case of ethekwini one finds Vulamehlo having just over 2000 voters per councillor but with part of it being incorporated into ethekwini this ratio shifted fourfold to over 8000 voters per councillor. Yet, the other section of Vulamehlo which was incorporated into Umdoni found its voter to councillor ratio going down slightly, from 2043 to 1943 voters to councillor. o In some cases, there was significant variation amongst merging municipalities which meant that some municipalities that merged had a significant increase in the number of voters per councillor. For example, KwaSani had only 957 voters per councillor compared with Ingwe s 2197 voters per councillor pre-merger. Once they merged, the voters per councillor doubled in the case of KwaSani to almost 2000 voters per councillor. Similar cases are found in the mergers of Mier/Khara Heis and Baviaans/Camdeboo/Ikwezi. 37

50 o On the whole, though, most of the mergers were of Category B municipalities with roughly similar proportions of voters to councillors. Finally, it should be noted, though, that changing ratios of voters to councillors does not mean automatically that participatory democracy suffers, but rather that elected councillors have larger areas to serve. Those elected do get increased remuneration and particularly in category A municipalities are better resourced with access to higher ratios of staff to population being served. On the other hand, such a situation probably leads to greater contestation amongst potential councillors Changed Economic Bases Possible the greatest differentiator between and within the merged municipalities revolves around the economic bases of these municipalities. Whilst this is a reality of apartheid spatial disparities, the point becomes very clear when examining the economic bases of merged municipalities. An analysis was undertaken of the economic bases of municipalities which merged or were incorporated between 2011 and Firstly, levels of unemployment in some of the mergers are far higher than the national average. This was true in the cases of municipalities with high unemployment levels such as Fetakgomo (59%) and Greater Tubatse (50%). In other mergers there were also significant disparities in unemployment levels between municipalities being merged. For example, Indaka has an unemployment level of 57% compared with Emnambithi/Ladysmith of 34%, and Ntambanana with levels of unemployment of 49% compared with Mhlathuze at 31%. Secondly, in areas with high levels of unemployment one also expects there to be higher than average levels of people finding sustenance from the informal sector. Limpopo and Eastern Cape municipalities have particularly high levels of involvement in the informal sector. For example, Thulamela, Mutale, Aganang, Blouberg, Molemole and Makhado have very high levels of employment in the informal sector. Thirdly, there is great variation within and across merged municipalities in terms of the proportion of their households that are of higher household income levels. It is here where municipalities which have been merged have probably the greatest differentiation. In the merger of Tsolwana/Inkwanca/Lukhanji, for example, Tsolwana has only 8% of its households classified as higher income whilst in the case of Lukhanji some 18% of the households are so classified. Indaka has only 6% of its households 38

51 higher income compared with emnambithi/ladysmith having 19% higher income households. Fourth, these disparities are also found if one examines the tax bases of municipalities. For example, SARS publish the total personal tax assessments by municipality and one finds significant differences in total taxable income across the merged groups and within the merged municipalities. As one expects the total personal taxable income is much greater in Category A municipalities than in the Category B municipalities, but there are significant differences also within Category B municipalities and particularly in each of the merger groups. In most of these mergers, one (and in some cases two) municipality stands out as having a very much higher total personal taxable income than the other municipalities being merged. Clearly part of the merger process is to reduce disparities through such mergers. Finally, what is also noticeable is that in some of the mergers, one or more of the municipalities being merged has an economic growth rate below that of the other municipalities being merged. For example, Maletswai has a negative growth rate compared with Gariep which had a positive growth rate. Most of the merged municipalities in the Eastern Cape and KwaZulu-Natal had average economic growth rates well below the average for other Category B municipalities. It is clear from this data that merged municipalities have often been the result of one or more municipalities having poor and limited economic bases compared with their neighbouring municipality. Whilst again a reflection of the distorted apartheid spatial patterns, demarcation often becomes a means through which the limited economic bases of merging municipalities can be combined with the intention that through reduced fixed costs of municipalities (single management structures etc) and merged economic bases, there would be overall improvement in the living conditions of people in such areas. This is a very important point and reflects the spatial injustice described in the NDP. Clearly, with limited redistribution occurring to reduce such spatial inequalities, there will be increasing demands for communities on the edge of better resourced areas to see demarcation as the means through which their economic potential and opportunity will be increased. 39

52 5.2.5 Personal Income Tax Bases Merging municipalities are not only about striving to improve settlement patterns, leadership and economic bases, but they are also about creating more financially viable municipalities. This is not easy, because as was indicated above, the spatial disparities in South Africa are significant. In a situation where Category A municipalities have just over 30% of the population but they generate over 60% of the GDP, and where significant portions of the land surface are not economically viable, ways must be found to improve the revenue generation of municipalities and through that make funds available to municipalities. If a municipality generates a greater portion of the GDP than its share of the population, it is more likely to have far greater access to human, financial and technical resources to better the lives of its residents. The merged municipalities were compared on a number of financial indicators showing important differences within and between the merged municipalities. Firstly, if one considers existing rates generation as an important indicator of revenue generation (and which can pay for a number of key powers and functions of municipalities) one finds significant differences across the municipalities in terms of rates generation. umhlathuze, for example, generates over R330 million in rates compared with Ntambanana generating just more than R1 million. This means that the rates per households differ widely across municipalities. Places like Hlabisa, for example, generate only R77 in rates per household compared with the municipality it merged with, the Big Five False Bay municipality which generates R1328 per household. Municipal expenditure per household also varies across municipalities, but disparities are not always as wide. In part this is due to the fact that fewer municipalities have the ability to generate rates, particularly from business, and many are almost completely reliant on grants for income. But there are differences and KwaSani spends over R4000 per household compared with Ingwe with which it merged spending just over R1000 per household. Finally, and linked to the above, the number of municipal staff serving municipalities also varies significantly. Using an index of the total number of staff per household, one finds that in each of the mergers at least one municipality has proportionately far lower numbers of municipal staff serving the population. This clearly impacts on service delivery and the ability of a municipality to perform its municipal powers and functions. 40

53 5.2.6 Merging Infrastructure Realities Municipal redemarcations are as much about improving the capability of municipalities to deliver services as they are about other factors and criteria. Municipalities were compared in terms of the degree to which their households had access to basic network services. Overall, what one finds is that in most of the merged municipalities, high degrees of formalised areas were found, with generally good access to water, but levels of sanitation differed across and within the mergers. As expected, the degree to which traditional rural communities were found in the merged municipalities also differs significantly. The degree to which a municipality has large portions of its area including high proportions of people living in traditional rural communities is also an indicator of some of the most underserviced areas in South Africa. Vulamehlo and Ntambanana municipalities have higher than average proportions of people living in traditional areas and both were disestablished with another area of such high proportions of traditional authorities, Ingwe, being merged with KwaSani. Levels of CAPEX, too, ranged significantly from places such as Aganang (disestablished) with the lowest, to Category A municipalities like ethekwini at almost R5000 per household and then to smaller places like Baviaans and Naledi which also had high levels of CAPEX per household. These high levels could, however, be due to small populations Merging Municipal Financial Realities Having merged the municipalities, the question could be posed: what impact do such mergers have on municipal financial management? National Treasury has developed a system of monitoring financial distress across municipalities. On an annual basis, they provide measures of eight variables which are ranked between 1 (performing well) and 3 (performing poorly). These variables are: Cash Coverage: this measures the amount of cash on hand a municipality has to meet its monthly payments as and when they fall due. 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. 41

54 Reliance on capital transfers: Determine 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 over-spending of operational budgets and tests the effectiveness of municipal spending in accordance with resources available to them, what is the credibility of the budget and are municipalities able to adjust expenditure should planned revenue not materialize. 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, are there 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: Shows whether the municipality is able to meet its monthly commitments. When totalled, the scores range between 8 (performs excellently on all variables) and 24 (performs poorly on all variables). Municipalities which receive a total score of greater than or equal to 16 are deemed to be in financial distress. The financial distress scores were examined for the 2015/16 and 2016/17 years given that 2016/17 (at least from August 2016) was the year in which most of the new demarcations came into existence. The financial distress scores for the 2015/16 and 2016/17 years were examined looking at how the before and after merger situation had changed. What one finds is that: 20 municipalities had no change in their status before and after the formal mergers occurred and these were evenly split with 10 merged municipalities staying the same and not being in financial distress and 10 merged municipalities staying the same and being in financial distress; 42

55 Two municipalities got worse and have been classified for 2016/17 as being in financial distress; and Four municipalities indicated progress from being in financial distress to not being in financial distress in 2016/17. These are useful results in that they do show some evidence that financial management systems have stayed in place in the transition with some slight evidence of matters improving Mergers And Audits Given this indicative evidence that financial management seems to be largely in place after the mergers, it was decided that audits also be investigated to see if they have also largely remained without much change. In any merger it would be expected that it would take some time for audits to stabilise given that systems may not be synchronised, there is a need to rationalise and appoint new staff into an integrated organogram, etc. The comparisons before and after the mergers indicate: City of Tshwane: Same Unqualified with Findings Kagisano-Molopo: Improved to Qualified Enoch Mgijima: Same Disclaimer Walter Sisulu: Worsened to Disclaimer Mangaung: Worsened to Qualified Rand West City: Same Unqualified with Findings ethekwini: Same Unqualified with Findings Umdoni: Same Unqualified with Findings Ray Nkonyeni: Improve to Unqualified with no findings (Clean) Raymond Mhlaba: Improve Unqualified with Findings Inkosi Langalibalele: Not finalised Alfred Duma: Worsened from Unqualified with Findings to Qualified The New Big 5 False Bay: Improved to Unqualified with Findings Dr Nkosazana Dlamini Zuma: Same Unqualified with Findings 43

56 Blouberg: Same Qualified Molemole: Same Unqualified with Findings Polokwane: Worsened from Unqualified with Findings to Qualified Dawid Kruiper: Improved to Unqualified with Findings JB Marks: Worsened to Disclaimer Modimolle-Mookgopong: Not finalised Tubatse Fetakgomo: Same Qualified City of Mbombela: Same Unqualified with Findings Collins Chabane: First audit Qualified Makhado: Worsened Qualified to Adverse Musina: Same Unqualified with Findings Thulamela: Same Unqualified with Findings Dr Beyers Naude: Worsened to Disclaimer umhlathuze: Same Unqualified with no findings (Clean) Overall, one finds that Five municipalities improved their audits 12 municipalities stayed the same Seven municipalities had worse audit results and Two audits were not complete and one audit was new. Importantly these results are far better than one would expect given that they show there is no generalised immediate and negative impact on audit outcomes. Indeed, with mergers you would expect audit results of merged municipalities to be worse given that financial systems, policies and procedures have to be integrated, staff need to be amalgamated and change management is the order of the day. In addition, given that overall municipal audit results in South Africa worsened from 2015/16 to 2016/17, one would have expected merged municipalities to have followed the same trend. There is no substantive evidence of this having happened. 44

57 Overall, one could argue these audit results are generally quite good given that 2016 was an election year with newly contracted persons being put in place and other staff members having contracts come to an end. When coupled with the political processes around elections one always expects results to be worse during that period Changing Senior Management Capacities As indicated above, mergers come into effect on election dates and such dates also bring with them the potential for significant changes in senior management and instability due to electioneering and the like. It becomes useful then to measure the degree to which the merged municipalities had less or more stability before or after the elections. To analyse this the two most senior administrative positions were examined to see how they would have changed between 2015/16 and 2016/17. In the case of the Municipal Managers (MMs), one finds that: Prior to the mergers there were 11 Acting MMs and after the mergers eight of these 11 positions had become Permanent; Prior to the mergers there were 18 Permanent MMs on contract, and of these some 12 of these positions remain as permanent with four having acting positions. Overall, while the mergers may not have been responsible for improving the stability of senior management in local governance, there is a good start on which to build the merged municipalities. Table 5: Municipal Managers MM Acting 16/17 Permanent 16/17 Total Acting 15/ Permanent 15/ Total In the case of the Chief Financial Officers (CFOs), one finds that: Prior to the mergers there were 12 acting CFOs and after the mergers four of these 12 positions had become permanent; 45

58 Prior to the mergers there were 15 permanent CFOs on contract, and of these some 10 of these positions remain as permanent with five having acting positions. The situation here is not as good as that of the MMs and it would be important to ensure that in all merged municipalities all positions should become permanent as soon as is possible. Table 6: Chief Financial Officers CFO Acting 16/17 Permanent 16/17 Grand Total Acting 15/ Permanent 15/ Grand Total Finally, it should also be noted that only one of the 49 municipalities involved in the mergers has been under a Section 139 intervention prior to the merger. This municipality was Ventersdorp (now JB marks), but it should be stated that two more municipalities Dr. Nkosazana Dlamini Zuma, Walter Sisulu and Enoch Mgijima municipalities, were placed under Section 139 administration post Summary This section has reviewed, using as much quantitative information as possible, the content within which mergers and incorporations have occurred. What becomes clear in such a review is that the context for these mergers is writ large in the history of South Africa, where the spatial and racial inequalities have meant that the potential is small for sustainable and viable local governments outside of the Category A and a limited set of Category B municipalities. The potential for home grown revenues and capabilities is very limited and this means that a differentiated landscape is the order of the day. The mergers themselves have generally been of the following types: Some more rural, smaller or municipalities without own revenue bases have been merged when contiguous with Category A or Category B1/B2 municipalities; and One or more rural and small municipalities have been merged in ways that suggest they need to have a greater critical mass to perform their functions. 46

59 5.3 Municipality s Demarcation Process Issues In order to understand how some of the specific issues raised in the previous section play themselves out, the following mergers were selected for further analysis and description: Mangaung s 2015 merger with Naledi. This demarcation took effect after the 2016 municipal elections. Rand West City resulting from merger of Randfontein and Westonaria in This demarcation took effect after the 2016 municipal elections. The disestablishment of Aganang and its splitting into Polokwane, Molemole and Blouberg. This demarcation took effect after the 2016 municipal elections. The disestablishment of Vulamehlo and its splitting between ethekwini and Umdoni. This demarcation took effect after the 2016 municipal elections. The disestablishment of Mutale and the reconfiguration of the remaining municipalities in Vhembe (Makhado, Musina and Thulamela and the establishment of a new municipality Collins Chabane) will be considered. This demarcation took effect after the 2016 municipal elections. In the sections which follow, observations on the mergers will be drawn and where possible the challenges facing municipalities in implementing these mergers will be described Mangaung s 2015 Merger With Naledi In 2015, Mangaung merged with Naledi local municipality. This demarcation took effect after the 2016 municipal elections. The merger of the two municipalities saw a decrease in Mangaung s population density to 84 people per km 2. The municipality saw an approximate 50% growth in area, to almost km MDB

60 In 2015, the functionality of the municipalities due for amalgamation was assessed looking at institutional management, financial management, governance and service delivery. Most of the municipalities due for amalgamation (80%) were found to be at risk of being dysfunctional and 6% were dysfunctional. Ncube (2017) notes that amalgamating municipalities that are at risk of being dysfunctional may actually worsen the problem. An interesting result concerns the amalgamation of a functional metro (Mangaung) and a dysfunctional rural area (Naledi). While this merger may achieve financial viability/self-reliance, two important elements of municipal viability - governance and democracy - may be compromised. With the amalgamation, political representation for marginalised communities in Naledi virtually disappear, and in many ways rural governance of these communities becomes less functional, as an urban core governs and administers rural areas. Although Naledi may not be able to achieve financial viability, it could serve a critical constitutional and democratic role 11. In the metro s 2016/17 annual report, it notes that the uptake of these two regions have been smoother and more successful, despite increased household and population numbers. 12 However, it also notes complexities that followed the incorporation of the two localities Rand West Resulting From Merger Of Randfontein And Westonaria In 2015 In 2015, Randfontein and Westonaria local municipalities were merged, to form the Rand West City local municipality. This demarcation took effect after the 2016 municipal elections. CoGTA s Back to Basics municipal diagnosis noted the two local municipalities of Randfontein and Westonaria, as the two municipalities in the Gauteng Province which were at the risk of collapse, but also having equal chances of improving. A decision was taken to merge the two municipalities. However, it is noted that challenges were faced in the establishment of this new municipality. Harmonisation of municipal tariffs, policies and Human Resources related matters [were] some of the major transformation challenges that the /17 Mangaung Annual Report 48

61 municipality faced 13. Engagement with stakeholders such as labour representatives, SALGA, COGTA and National Treasury is ongoing in addressing these issues. 18 months after the local government elections, almost all top management positions had been filled. A new organisational structure had been adopted by Council and most transformation issues should have been finalised by the end of There have been issues with disparities in salaries paid to employees in the two former municipalities. This has impacted on the workforce expenditure. The new municipality has also faced financial challenges. It inherited the struggling financial status of the two de-established local municipalities, which has impacted on its cash flow situation. The losses in water and electricity through theft, leakages, and the culture of non-payment for services as the result of the economic situation with high unemployment rate, pose a considerable loss of revenue. On a positive note, the new municipality notes increased spatial development and local economic development opportunities following the merger of the two local municipalities. A revised Spatial Development Framework is to be prepared, that will guide spatial allocation for development over a short, medium and long-term period 14. The 2016/17 Annual Report for Rand West City LM notes that the new merger of the Randfontein LM and the Westonaria LM (Rand West City LM) have presented a new economic and spatial opportunities which act as a catalyst for the development of West Rand region and attract further much needed investment in the two municipalities The Disestablishment Of Aganang And Its Splitting Up. The MDB noted in 2015, that Aganang local municipality would be disestablished, and split into the local municipalities of Polokwane, Molemole and Blouberg. This demarcation took effect after the 2016 municipal elections. Three local municipalities were affected by the MDB s decision to disestablish Aganang. This includes Polokwane, Molemole and Blouberg local municipalities. In Blouberg, 11 settlements were incorporated and the number of wards increased to 22. A challenge was noted around the approval by the outgoing council of the IDP /17 Rand West City Annual Report /17 Rand West City Annual Report 49

62 and Budget for 2016/17. Aganang had also approved an IDP and Budget, and there was a need to amend Blouberg s IDP and Budget to include the projects and programmes from Aganang. This required public consultation meetings which were held in October Blouberg LM notes in its 2016/17 annual report that it not all projects have been completed, especially in the former Aganang areas 15. All of the capital projects from this area have been rolled over. The Molemole Local Municipality saw an increase in the number of wards from fourteen to sixteen, equalling the need for service provision to 16 additional villages. IDP programmes from the former Aganang were integrated into the municipal IDP document. Molemole saw an increase in its total population of about The municipality is currently developing a Molemole Integrated Transport Plan that includes the transferred wards from disestablished Aganang Municipality 16. Finally, some portions of the Aganang municipality were incorporated into Polokwane local municipality. In its 2016/17 Annual Report, Polokwane note that it is still dealing with the post transitional matters brought by the inclusion of Aganang Municipality to Polokwane Municipality. Polokwane received the biggest proportion of employees (98%) requiring a review of the organisational structure. Similar to the municipalities of Molemole and Blouberg, Polokwane faced challenges related to commitments on the Municipal Infrastructure Grant (MIG) funded projects. The municipality had to reconcile the business plans for both the Aganang Municipality and Polokwane Municipality. There was also a delay in the finalisation and the approval of the business plans and a review of by-laws was needed. However, different levels of service delivery are noted, with Polokwane still to finalise the list of priority roads and ensure equal levels of access to services such as libraries across the municipality The Disestablishment Of Vulamehlo And Its Splitting up In 2015 a decision was taken to disestablish Vulamehlo and split the municipality between ethekwini and Umdoni. This demarcation took effect after the 2016 municipal elections. 15 Blouberg 2016/17 Annual Report 16 Molemole 2016/17 Annual Report 17 Polokwane 2016/17 Annual Report 50

63 In Umdoni local municipality, the number of persons per square kilometre was 229 in 1996, 263 in 2001 and 334 in 2011 and has now decreased to 145 in 2016 due to the incorporation of Vulamehlo. It inherited predominantly rural wards from the disestablishment of Vulamehlo Municipality and this calls for the Department of Rural Development to get on board with regards to programmes that will alleviate the strain on the municipality with regards to job creation. Rural development can aid the rural communities in areas such as hinterland tourism, agricultural development and sustainable farming that will increase jobs and ensure food security for rural communities 18. Umdoni inherited debt from the Vulamehlo Municipality and notes the need to implement a revenue enhancement strategy to assist in the reduction of aged debtors. It is also planning to review, adopt and consolidate its LED strategy with the former Vulamehlo LED Strategy to ensure that it covers the newly demarcated area. In addition, in its 2017/18 IDP, Umdoni notes the need to review its SDF for the newly demarcated Umdoni to include the former Vulamehlo area. The SDF will seek to address matters such as the strategic focus, goals, strategies and budgeting elements as well as the inclusion of the Capital Investment Framework. Importantly, a forum was established between ethekwini, Vulamehlo, Ugu and Umdoni in the 2015/16 year to prepare for the merger. This clearly assisted in the process of amalgamation, given that it allowed for joint planning and alignment is needed on the following issues: the IDP, SDF, GIS, and project Proposals The Disestablishment Of Mutale And Its Splitting Up Since the transition from the Transitional Local Councils (TLCs) in 2000, the Malamulele community, in the Vhembe District, has been submitting a proposal for their own municipality to the Municipal Demarcation Board. This was motivated by the fact that the initial TLC Levubu-Shingwedzi was merged with the old Thohoyandou TLC to form Thulamela municipality. The Malamulele community s application has always failed in terms of the criteria as outlined in Section 24 and 25 of the Municipal Demarcation Act of Their call for a new municipality continued until 2013/ /18 IDP 19 ethekwini Municipality, Integrated Development Plan 5 Year Plan: 2017/18 to 2021/22: 2017/2018, Adopted by ethekwini Council on 31 May

64 when the community embarked on a protest. The Malamulele community established a task team which submitted a new application to the Demarcation Board. The result of the assessment by the Board was that the application still did not meet the requirements as provided for in legislation. Then the Minister requested that a reconfiguration of municipalities in the whole of Vhembe be undertaken and specifically that the Mutale Local municipality be considered for disestablishment as it was not financially viable. The MDB investigated the matter and concluded that it would: 1. Disestablish Mutale municipality; 2. Retain the four-municipality option for Vhembe District Municipality with the creation of a new municipality significantly larger than the disestablished Mutale municipality and consisting of a portion of Mutale, a portion of Thulamela and a portion of Makhado. 3. The four-municipality is defined as follows: a. Thulamela local municipality: Thulamela minus Wards 1, 7-18 and 40 (the so-called Malamulele area) and would gain Wards 1-6 and 13 from Mutale. b. Makhado local municipality would lose wards 1-4 and 7. c. Musina would gain Wards 7-12 of Mutale. d. The new municipality would then include Wards 1-4 and 7 from Makhado and wards 4, 7-18 and 40 from Thulamela. The Board was of the view that the Vhembe District could not have three municipalities as other districts of its size had five or more local municipalities. The Board then redetermined certain portions of Thulamela which included the Malamulele area and portions of Makhado (including the Vuwani area) to a new municipality. This led to dissatisfaction in the areas of Vuwani who felt that this was done to respond to the Malamulele matter. The Vuwani community made representations to the Board led by Chief Masia. However, the MDB made its final decision on the matter and the Vuwani community then approached the High Court in an attempt to seek the reviewal or reversal of the decision. The Polokwane High Court ruled in favour of the MDB on 29 April

65 A series of violent protests by the Vuwani community then took place, resulting in the destruction of properties. The biggest destruction was the burning of approximately 21 schools. Effective teaching and learning in the area was seriously affected despite various interventions including the engagement with the King and traditional leaders and the appointment of a mediation panel by COGTA. This ultimately led to an agreement just before the elections between Government and local parties, with elections then being held. Post-elections the Vuwani delegations continued to argue they would not be served by the Collins Chabane Council and the situations continues to be affected with threats of stoppages and the like. What has also compounded some of the governance challenges is the fact that monies from a number of these municipalities are part of the VBS banking scandal. Here, a number of the municipalities from the area illegally deposited municipal money with the VBS bank: Vhembe District Municipality has the biggest exposure at R311-million, just over a third of its annual total operating revenue; Collins Chabane municipality and Makhado municipality. Recovering these monies was highly uncertain, National Treasury informed the Parliamentary finance committee. And it s also unlikely these councils will receive a bailout as local government is a separate sphere of governance. This issue has nothing to do with redemarcation directly, but is symptomatic of the generally poor levels of governance which can operate in such environments Summary Issues These case studies and the previous sections reinforce that most of the mergers/incorporations have been primarily where urban areas are being merged with mainly rural areas. The areas of these municipalities have become very large, and average population densities are becoming much lower by far. Council representation and the number of wards generally reduces. Most incorporated areas have a history of having been poorly governed. 53

66 In all such cases a wide variety of areas are impacted upon through such mergers or consolidations. These include 20 : Infrastructure o Integrating and consolidating programmes o Upgrading of data services o Repair and maintenance o Eliminating backlogs Administrations o Rationalisation of services o Change management costs o Acquisition of new technology for human resources, financial and payroll systems o Harmonisation of systems o Rationalisation of administrative policies o Rationalisation of fees and tax rates o Harmonisation of asset registers o Rationalisation of voters roll o Merger management, coordination and communication costs Human Resources o Harmonisation of wages, salaries and allowance (wages are often set at the highest level paid by separate municipalities) o Harmonisation of human resources policies o Harmonisation of councillor allowances o Costs associated with retraining and retooling of workers o Costs associated with staff redeployment 20 The Impact of Demarcations on the Financial Performance and Sustainability of Municipalities, Mkhululi Ncube and Nomfundo Vacu 54

67 o Retrenchment or staff layoff costs Debt o Debt servicing costs o Liabilities o Irrecoverable consumer debt Revenues and Expenditures o Increase in expenditures due to wage and services rationalisation o Tariffs o Tariffs may increase for some consumers in previously low tariff municipalities Perverse Incentives o Amalgamation offers municipalities an incentive to accumulate debt so as to download this to a new municipality o Last minute spending that result in budget overruns Competition o Diminished competition results in poor services Overall, though, all the mergers to date reinforce the high levels of apartheid differentiation where South Africa s racial and spatial inequalities remain stark and redemarcation is often seen as the best means of achieving redistribution. 5.4 Concluding Comments on Amalgamations The mergers and consolidations in South Africa and which are described here follow similar trends found from the international evidence 21. As Fox and Gurley (2005) indicate, many factors that are specific to the circumstances of each place can affect the potential gains from consolidation including the goals expected from consolidation, the structure of government existing prior to consolidation, local demographics (for 21 Will Consolidation Improve Sub-National Governments? William F. Fox and Tami Gurley * Revised October 3,

68 example, population size and density), the set of responsibilities assigned to local governments, and the homogeneity of preferences within the area. They arrive at such conclusions after reviewing a number of case studies, including in Jordan, Sudan, Zimbabwe, Latvia and in the greater Toronto area. In a study for the MDB, the HSRC, too, examined a number of case studies into municipal mergers and consolidations describing some of the international evidence on the benefits and costs of mergers and consolidations 22. Usually, mergers and consolidations aim to: Improve municipal financial viability through savings and economies of scale Reduce administrative overhead costs Find economies of scale Improve service delivery efficiency Eliminate redundancies in municipal services Improve municipal self-sufficiency Reduce government deficits Ease the burden on poorer municipalities through redistribution Respond to urban sprawl. They reviewed case studies in countries such as the following: In Japan, municipalities in Japan were consolidated from in 1888 to in Only in the latest phases to improve efficiency and strengthen municipal administrative and financial foundation. The consolidation of municipalities saw a drastic reduction in villages, while the number of cities increased exponentially. Improved efficiencies were largely realised and is expected to reach 1.8 trillion yen/year in the long-term amidst concerns of uneven distribution of merger benefits. In Sweden, the 1952 merger phase targeted rural municipalities, bringing them down from 2281 to 816. By 2013 Sweden had a total of 290 municipalities 22 Municipal Mergers & Consolidations: An Ultimate Solution for Municipal Sustainability?, A PRESENTATION MADE AT THE SEMINAR ON CATEGORIZATION OF MUNICIPALITIES INTO METROS: 17/10/2017 (HSRC) 56

69 (rural and urban). In Norway, voluntary consolidations through economic incentives saw a reduction in the number of municipalities from 434 to 217. Consolidations are said to yield annual efficiency gains of nearly 3 billion Norwegian Kroner (NOK). In Germany, the state of Brandenburg reduced municipalities from 1319 to 266 (period ). Mergers said to have realised significant reduction in administrative expenditure. In Canada, in the Ontario province, municipalities were reduced from 815 in 1996 to 447 in In Denmark, the number of municipalities were merged from 1,098 in 1970 to 98 in 2007 In Israel, a study by University of Jerusalem proved that mergers resulted in a level of expenditure decreasing by 8% without effecting the quality of service to residents In Netherlands, municipalities were reduced through compulsory and voluntary mergers from 1209 in 1849; to 1016 in 1945; and currently 393. A study by Schaap & Karsten showed that amalgamations have not produced improved systems capacity. In general terms, these studies show mixed results in terms of comparing benefits and costs of mergers/consolidations. Costs and benefits often varied in terms of factors such as the existing structure, responsibilities, and revenue sources of local governments, the service delivery conditions including geography and topography, the homogeneity and types of service demands, the availability of skilled municipal workers, the existing variability in service delivery across the country, the political strength of local leaders and bureaucrats, and so forth. What the studies all show, though, is there is invariably a lack of financial support (incentive) from central government to offset transactional costs of mergers. In addition, there are unanticipated costs of mergers in the first to second year of operation. The HSRC argue that mergers are often accompanied by high transitional costs, which may destabilise service delivery. Given these transitional costs, it may be necessary to consider alternative mechanisms that are less costly but yield similar fiscal and service delivery outcomes. Municipalities need to be allowed to explore other 57

70 options, especially when the aim is to improve fiscal and service delivery outcomes. Fox and Gurley (2005) argue that the extent of size economies will be lower than may be anticipated bigger does not always imply lower costs and can imply higher costs. The traditional means of producing many public services -- using many small facilities near people (such as schools) and employing labour-intensive technologies do not lend themselves to economies that extend to wide geographic areas. Some other services, of course, offer a greater potential for economies. Second, there are likely to be significant transition costs and time spent in moving from the existing government structure to a new, larger government. Some of these costs will be in terms of additional expenditures and others will be in the form of poor service delivery and citizen dissatisfaction that will arise in moving to an operating, merged government. There may even be political implications of moving to a larger government, such as fewer individuals being elected as mayor and city council members. Third, consolidation involves different actors with different individual goals and motivations. Decisions to consolidate should not be made under the assumption that the goals are altruistic and that the various actors will do whatever is necessary to make the consolidation plan succeed. The consolidated government will not be perfectly efficient and focused on attaining the expectations of the electorate or the national government. The involved people, local and national bureaucrats, local and national politicians, and service deliverers, may thwart or enable the consolidation, depending on the design. They will to a very real degree determine whether it works or fails. This research supports these conclusions in that undoubtedly there are short-term challenges in such mergers, but no real evidence that the overall sustainability of municipalities has been affected. If for no other reason, reducing the actual number of municipalities which had poor financials, audits and performance assists in reducing the overall challenges of governance which aims to redress the spatial inequalities and injustice so prevalent in South Africa. One important area which arises out of the case studies is the limited planning, change management, costing and provision of resources for the transitionary processes of such mergers/consolidations which appears to have happened. Whilst on the one hand there is no doubt that government should bear the 58

71 transitional costs of the restructurings 23, this requires dedicated teams working with the merged municipalities to properly management the change processes. Interestingly, in the case of ethekwini which absorbed a significant portion of Vulamehlo, it is clear that prior planning by ethekwini and other municipalities, well before the elections, assisted greatly in the process, so much so that in the IDP and other key documents, the merger process is not even listed as a municipal challenge. Proper planning and a transitional grant should be made available to facilitate the restructuring process, including 24 : Planning and preparing an amalgamated municipality s delivery model; Rationalising and harmonising policy regimes, IDPs and bylaws of different municipalities; Rationalising tariffs; Rationalising employment policies and other human resources systems (grading of workers and job evaluation processes); Rationalising and harmonising evaluation rolls and assert registers; Building capacity to deal with change management; Facilitating communication about demarcation. It has also been recommended that once final boundary recommendations are published, it should specifically require of National Treasury that it provides evidence that budget for such restructuring is available, and that COGTA indicates what processes it will follow to ensure effective change management happens. In addition, a formal due diligence study should be commissioned after boundary decisions have been made to identify the financial situation of the affected municipalities and what steps should be taken (including a freeze on appointments, etc.) to stop potential wasteful/duplicate expenditure/etc. Municipal mergers and consolidations are inevitable and should not be seen as a solution for viability and sustainability, given that they are generally in order to address 23 The Impact of Demarcations on the Financial Performance and Sustainability of Municipalities, Mkhululi Ncube and Nomfundo Vacu 24 The Impact of Demarcations on the Financial Performance and Sustainability of Municipalities, Mkhululi Ncube and Nomfundo Vacu 59

72 spatial injustice identified in the NDP. Provision must be made for at least a threeyear transition process, with funding for change management. 60

73 6 Institutional Overview While the previous chapters contained an overview of the general environmental situation across the country (demographic and social context, the economic context, land and human settlements, movement and transport, infrastructure and service provision, and the environment), and the specific issues faced by municipalities which were redemarcated, it is relevant also to assess the general governance, through findings such as audit scores and other financial indicators and voter turnout. 6.1 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 61

74 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 municipalities across the province for the 2016/17 year, indicating some 57% of municipalities had unqualified audits (with or without findings), some 26% of all municipalities had qualified audits and the remaining 17% of municipalities either had disclaimers/adverse findings or audits had not been finalised timeously. Figure 19: 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: 62

75 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. The figure below indicates that the Free State, Gauteng, Mpumalanga and Northern Cape have at least 50% of their municipalities in a state of financial distress. 63

76 Figure 20: Municipalities in Financial Distress by Province In addition, measures are also provided which detail aspects such as: The degree to which a municipality (over the past three years) has underspent its CAPEX; 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 21: Years persistent financial distress 64

77 6.2 State of Governance Municipalities were asked to provide information on a number of indicators which broadly described the state of governance in their municipality 25. In the following table, some of these indicators are listed, including: The holding of audit-risk committee meetings in 2016/17 and 2017/18 financial years; The number of by-laws approved by the municipality in 2016/17 and 2017/18; The number of Council meetings held in the 2016/17 and 2017/18 years, bearing in mind that municipal councils must meet at least four times per annum; The number of Executive Committee/Mayoral Committee meetings held in the 2016/17 and 2017/18 years; The number of MPAC meetings held in 2016/17 and 2017/18. Overall, the average national figures for meetings held are quite good and generally way about the statutory requirement of quarterly meetings. However, there are also significant differences across provinces. The responses on broad aspects of governance from municipalities are on average generally below the national averages as may be seen in the following table: Table 7: Meetings held Category Easter n Cape Free State Gaute ng KwaZ ulu- Natal Limpo po Mpum alanga North West Northe rn Cape Weste rn Cape Grand Total Audit-Risk Mtgs 1617 Audit-Risk Mtgs ,2 5,6 5,8 5,1 7,8 7,8 5,1 3,5 5,6 5,6 5,1 4,7 5,8 4,8 7,8 9,4 4,4 3,3 5,2 5,6 #By 1617 #By 1718 Laws Laws 3,7 1,5 0,5 1,9 2,0 2,8 4,2 1,0 2,3 2,4 2,6 0,9 0,5 3,9 2,8 3,2 3,8 1,6 3,4 2,9 Council Mtgs 1617 Council Mtgs ,0 12,9 15,5 13,0 12,6 13,1 13,1 8,9 13,0 12,3 11,8 11,1 12,3 14,2 12,0 12,9 13,3 8,0 12,5 12,4 25 It should be noted that not all municipalities responded to all questions and in the analyses which follow responses are averaged and where responses are low, the actual number of affirmative responses is indicated. 65

78 Category Easter n Cape Free State Gaute ng KwaZ ulu- Natal Limpo po Mpum alanga North West Northe rn Cape Weste rn Cape Grand Total Exco/Mayco Mtgs 1617 Exco/Mayco Mtgs ,9 4,9 14,0 13,7 13,5 14,8 8,3 3,5 10,2 10,7 9,0 6,1 14,8 15,1 13,1 15,9 9,2 3,1 11,0 11,4 MPAC 1617 MPAC 1718 Mtgs Mtgs 7,3 4,3 9,5 6,6 9,8 12,2 10,9 3,3 4,4 7,3 5,8 3,5 7,0 5,2 8,6 9,4 10,3 2,6 3,1 5,9 6.3 Engagements with the public Whilst meeting the constitutional objectives for the holding of meetings of Council and its committee is one measure of governance and indirectly of capacity, a second dimension is the degree to which municipalities engage with and listen to their communities. Here, the frequency of ward meetings per ward per year is one such indicator and it is to be expected that ward meetings which are held on a quarterly basis are advancing the aims of participatory governance quite well. A second index of participatory democracy is also used, that of the number of No. of ward meetings Blank municipalities did not provide information Figure 22: Number of ward committee meetings held per local municipality in 2017/18 protests, standardised per in order to be able to compare the frequency of protests across municipalities 26. In the table which follows, given that only around 140 out of 249 municipalities responded to these questions, the count of municipalities responding to these questions is also provided. Importantly, the average of ward committees held is slightly more frequently than quarterly. In the case of protests, though, they appear to be increasing and also vary across provinces with around 2 protests per people being recorded by responding municipalities. Protests, when standardised, to have increased over the past year. 26 It should be noted that not all municipalities responded to all questions and in the analyses which follow responses are averaged and where responses are low, the actual number of affirmative responses is indicated. 66

79 Table 8: Ward committee meetings and average protests Category Easter n Cape Free State Gau ten g KwaZu lu- Natal Lim pop o Mpum alang a North West Northe rn Cape Wester n Cape Gran d Total Ave.Ward comm 1617 per ward Municipal Count Ave. Ward comm 1718 per ward Municipal Count Ave. Protests 1617 per 100th 4,0 3,6 3,8 4,7 4,9 4,2 4,0 4,0 4,1 4, ,8 4,7 4,4 6,2 6,5 5,1 4,9 5,4 4,5 5, ,7 4,5 6,7 1,0 1,1 0,9 2,1 2,8 1,8 1,8 Municipal Ave. Protests 1718 per 100th Municipal Count 2,7 7,0 6,8 1,3 1,6 2,2 2,0 2,1 2,5 2, Focus on the poor Delivery of basic services to the poor is one of a number of dimensions of service delivery which is critically important in the South African context. Here, a number of questions were asked including the degree to which municipalities have Free Basic Services (FBS) Policies in place and the number of households being served by these policies. In particular, two questions dealing with whether or not the municipality has a FBS policy in place and how many HH are being served by that policy are %FBS Water Policy in place Limpopo Mpumalanga North West KwaZulu-Natal Free State Northern Cape Eastern Cape Western Cape Figure 23: Percent of municipalities per described, using the cases of Water and Electricity. province with a free basic water policy in place Almost 60% of all municipalities across South Africa have FBS Water policies in place, although almost 80% of these municipalities have FBS Electricity policies in place. On average over Households benefit from FBS Water in each municipality with FBS Electricity household numbers being less than half of that around 7000 households.. 67

80 Table 9: Free basic services Category Easter n Cape Free State Gau ten g KwaZu lu- Natal Lim pop o Mpum alang a North West Northe rn Cape Wester n Cape Gran d Total %FBS Water Policy in place 35,1 77,3 75,0 26,4 59,3 80,0 72,7 83,9 82,8 59,4 FBS Water HH %FBS Electricity Policy in place 81,1 81,8 75,0 78,8 73,1 75,0 68,2 83,9 75,9 77,7 FBS Elec HH 7009,8 6646, ,5 5310, ,3 9037,8 9882, ,8 6809,8 6756, Compliance with key policies The legislative environment for municipal government is very comprehensive in South Africa and much is made during the audit process of the degree to which municipalities comply with legislative, policy and other conditions. Three measures of this compliance were chosen: the degree of compliance with budgetary process conditions, the degree to which municipalities comply with the Spatial Land Use Management Act and the degree to which municipalities now comply with the Municipal Standard Chart of Accounts (mscoa). Three additional measures of the degree to which municipalities are in compliance were also examined to provide a more holistic understanding of municipal compliance. These measures include the degree to which, at the end of the financial year, the municipality owed money to ESKOM, Water Boards or the Auditors. Owing money to such institutions is indicative of poor planning, leadership and governance. In the table which follows, given that in the case of the first three questions only around 100 out of 249 municipalities responded to these questions, the count of municipalities responding to these questions is also provided. In the case of the last three questions, far fewer municipalities indicated they had not paid out ESKOM, Water Boards or the auditors. 68

81 Overall, almost all reporting municipalities indicated they were in compliance with the budgetary processes, with over 95% of the Average owed to ESKOM B Limpopo Mpumalanga North West Free State KwaZulu-Natal Northern Cape Eastern Cape Western Cape Figure 24: Average amounts owed by municipalities to Eskom by province municipalities reporting positively. SPLUMA compliance was not nearly as good, being slightly under 80% compliance. Given the importance of mscoa it is good to see that compliance rates are also above 90% for all reporting municipalities. When it comes to monies owed by municipalities at a national level, though, to major institutions, some 54 municipalities owed over R425 million to ESKOM, 38 municipalities owed over R116 million to Water Boards and 51 municipalities owed over R13 million to their auditors. Table 10: Compliance with policies Category Eastern Cape Free State Gaute ng KwaZul u-natal Limp opo Mpuma langa North West Norther n Cape Western Cape Grand Total %Budget Compliance 1718 # Municipalities responding % Compliance SPLUMA # Municipalities responding %mscoa Compliant # Municipalities responding ,6 91, ,2 60,0 100,0 80,6 80,0 88,9 61,5 70,0 88,9 79, ,7 100,0 100,0 97,0 92,0 100,0 100,0 70,0 96,2 93, Ave Amt owed to ESKOM # Municipalities responding Ave Amt owed to Water Brds # Municipalities responding Ave Amt Owed Auditors # Municipalities responding

82 6.6 Budgetary challenges Ave % expenditure on staff Western Cape 32 Northern Cape 36 North West 23 Free State 30 Eastern Cape 37 Limpopo 35 Mpumalanga 28 KwaZulu-Natal 30 Institutional capacity challenges also revolve around the income and expenditure statements of municipalities. The following table indicates, for example, the average OPEX and CAPEX for municipalities in each province. The last row shows what the average per capita expenditure in each municipality is across the provinces. Breaking the Operational expenditure down we find staff costs taking up a significant portion of Figure 25: Average percentage of operating expenditure by municipalities on staffing costs OPEX. In terms of income, too, there is significant variation across the three main sources of income: transfers primarily from national government (Equitable Share and Conditional Grants) and then locally generated income from service charges and rates. On average, nationally, some 30% of expenditure of OPEX is on staff costs, a figure which itself is far higher than the 20% figure often touted as the standard to aspire towards. In addition, whilst on average municipalities get almost half of their income from transfers and grants, this varies significantly across municipalities. The ability to rely on service charges and rates as income streams also varies % dependence on grants 23% 83% 42% 39% 40% 81% 25% 83% 23% 44% 57% across municipalities. Table 11: Budgets Figure 26: Average municipal dependence on grants per province Category Eastern Cape Free State Gaute ng KwaZulu -Natal Limpo po Mpuma langa North West Northern Cape Western Cape Grand Total OPEX %Staff costs 36,8 29,5 25,5 30,4 34,5 28,3 23,1 36,2 32,0 30,2 %Grants 81,3 38,5 22,9 57,3 82,6 44,2 42,0 39,8 24,8 49,3 70

83 Category Eastern Cape Free State Gaute ng KwaZulu -Natal Limpo po Mpuma langa North West Northern Cape Western Cape Grand Total %Income Service charges 21,8 53,8 69,1 40,8 29,5 44,0 62,2 54,7 54,4 45,5 %Income Rates 9,5 12,6 18,5 18,4 11,2 16,7 12,3 18,1 17,4 15,0 CAPEX Total expenditure per capita 3037,8 5152,4 6512,0 2601,7 2807,0 4698,7 3563,7 5532,7 7610,5 4259,4 71

84 7 Individual capacity 7.1 Political leadership There is no doubt that no matter what the institutional and environmental/resource capacity challenges are, the degree to which there is good individual capacity remains the major and critical issue affecting Female Male ND Figure 27: Gender of Municipal Mayors per municipality municipal financial and delivery performance. The following table captures some information in this regard, describing the gender balance and average experience in local government of the three key political leaders in municipalities: (Executive) Mayor, Speaker and Chief Whip. In the table which follows, only 171, 80 and 82 responses from Mayors, Speakers and Chief Whips were provided and these counts broken down by each province are provided. Nationally, almost 40% of Mayors are women, reflecting the strides made towards equality, although there are major differences across provinces. The proportion of Speakers who are women is higher, but still not at 50%, whilst less than one-third of Chief Whips are women. Importantly, and positively, Mayors and Speakers on average have had over ten years of municipal experience, although this average varies across provinces. Table 12: Political leadership Category Easter n Cape Free State Gaut eng KwaZul u-natal Limp opo Mpum alanga North West Norther n Cape Wester n Cape Grand Total 1. Gender %Female Mayors 56,5 50,0 0,0 29,3 53,8 46,2 28,6 53,8 25,9 39,8 #Responses Mayors %Female Speakers 36,4 66,7 75,0 40,0 57,7 46,2 50,0 50,0 22,2 43,7 #Responses Speakers %Female Chief Whips 40,9 33,3 0,0 26,7 26,9 38,5 46,2 30,0 29,4 31,9 #Responses Chief Whips

85 Category Easter n Cape Free State Gaut eng KwaZul u-natal Limp opo Mpum alanga North West Norther n Cape Wester n Cape Grand Total 2. Ave Years Experience in Local Government Mayor 11,1 11,5 15,8 10,8 9,9 12,0 13,7 8,4 11,9 11,2 Speaker 10,5 12,3 13,8 10,6 11,5 12,2 11,1 9,2 8,8 10,7 Chief Whip 8,7 6,1 11,5 5,1 9,8 9,6 10,6 4,7 5,7 7,4 7.2 Senior Management Whilst political leadership is critical for providing overall strategic direction, administrative leadership is critical for executing policy and service delivery. The following table highlights the gender composition, the status of senior managers and the experience of senior managers in local government. It shows that nationally, only 20% of all Municipal Managers are women, a figure well below equality. The figure for Chief Financial Officers is higher though, at just under 30% and for the remaining Senior Managers on average one third are women, although even these are well below 50%. It should be noted with concern, though, that almost 10% of MMs and 20% of CFOs are in acting positions, which suggests quite serious instability in such top positions. The percentage of MM and CFO vacancies is indicated in the figure below. It must be noted though, that around 40% of all municipalities did not respond on this question. Figure 28: Municipal Manager and CFO Vacancies by Province Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape 9% 17% 25% 16% 33% 78% 91% 83% 100% 75% 84% 67% 100% 95% 22% 9% 14% 28% 16% 33% 9% 82% 91% 86% 100% 72% 84% 67% 91% 96% 18% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Municipal managers Chief Financial Officers Key Acting & Vacant Filled 73

86 Overall, when it comes to the degree to which senior management has experience in local government, the respondents indicated that on average MMs have over 15 years experience, CFOs over 14 years experience and the remaining Senior Managers around 13 years experience. Overall, these figures are fairly good, although there are quite significant differences across provinces. Finally, when it comes to the critical positions of heads of technical, community services and Planning/Development portfolios, the average experience is lowest of all senior management, with significant differences across provinces. Table 13: Senior management Average years of experience in local government (SM = Senior Manager) MM 16 CFO 14 SM Community Services SM Corporate Services SM Planning 10 SM Technical Average years experience Figure 29: Average Years Experience for Municipal Senior Management Category Eastern Cape Free State Gaut eng KwaZulu -Natal Limp opo Mpuma langa North West Northern Cape Western Cape Grand Total Non responsive municipalities Gender %Women MMs 12,5 28,6 0,0 12,1 40,0 22,2 27,3 0,0 12,0 17,9 % Women CFOs 31,8 14,3 75,0 20,7 32,0 50,0 36,4 27,3 20,8 29,1 %Women Managers 2. Acting Senior 50,0 26,7 39,3 33,1 31,3 41,7 34,5 8,3 25,0 33,3 %Acting MMs 4,3 0,0 0,0 12,1 4,0 33,3 10,0 16,7 4,3 8,9 %Acting CFOs 9,1 14,3 0,0 27,6 16,0 33,3 81,8 9,1 4,2 20,4 3. Experience in Local Government MM 17,3 16,6 20,8 14,7 11,8 10,1 15,8 12,7 22,2 15,7 CFO 13,5 13,8 13,8 16,3 7,7 12,1 13,0 11,9 20,7 14,0 Sec 56 positions 12,8 17,2 20,0 12,1 10,8 13,1 11,7 16,7 18,1 13,8 * Technical SM 12,3 15,1 22,8 8,8 9,5 14,0 8,3 18,3 18,1 12,6 *Planning Development SM *Community Services SM 11,4 6,8 19,8 11,9 9,4 12,1 6,5 9,3 9,7 10,4 11,9 15,4 18,8 9,4 9,5 12,0 13,2 13,1 16,3 12,2 74

87 Figure 30: Average years experience for Municipal Managers, Chief Financial Officers and Section 56 Positions Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape MM CFO SM Community Services SM Corporate SM Planning SM Technical 7.3 Staffing stability The degree to which there is staffing stability in a municipality is also important, given that retirements/boardings mean a loss of institutional memory. The following table indicates, for example, the average staff complement in each municipality as well as the degree to which people are resigning, retiring/being boarded and being dismissed in each municipality. Nationally, around 28 persons per municipality are retiring each year, around 10 are being boarded and just over 2 being dismissed. Table 14: Staffing stability Category Easter n Cape Free Stat e Gau ten g KwaZu lu- Natal Lim pop o Mpum alang a Nort h West Northe rn Cape Weste rn Cape Gran d Total Ave Total staff complement 458,7 551, ,0 491,9 541, 0 732,4 593,8 275,0 659,0 544,0 Ave Total staff resignations Ave Retired/Boarded 1617 Ave Dismissals Abscondments ,4 14,2 36,3 19,8 15,0 13,0 16,1 6,9 86,7 27,5 6,1 4,0 15,8 7,3 20,8 12,4 12,7 2,9 9,5 10,2 1,5 0,8 6,0 2,2 0,5 3,1 2,6 1,1 4,5 2,2 Figure 31: Average number of persons retired/ boarded and dismissed per year per municipality by MIIF type B1 B2 B3 B4 C1 C Average number of persons retired / boarded Average number of persons dismissed 75

88 7.4 Staffing competency A fourth dimension of individual capacity revolves around the overall competency of municipal staff as measured in terms of NQF levels. The following table indicates the average number of persons per municipality in each of the NQF levels: NQF 6: Technical level NQF 7: Bachelors degree level NQF 8: Honours degree level NQF 9/10: Masters/Doctorate level On average each municipality has around 54 staff members with technical competency, compared to just over 3 persons with Masters/PhD degrees. Again, there are major differences across provinces as shown in the figure below. For B1 municipalities this ratio is far higher, compared to other municipal types. Table 15: Staffing competency Category Easter n Cape Free State Gau teng KwaZul u-natal Lim pop o Mpum alanga North West Norther n Cape Wester n Cape Grand Total Ave NQF6 Technical 42,7 20,4 105, 0 62,6 74,8 104,0 44,4 15,1 35,6 53,8 Ave NQF7 Bachelors Ave NQF8 Honours Ave NQF910 Masters/PhD 25,8 19,6 66,8 33,0 44,0 56,8 20,5 8,6 30,1 32,3 6,8 4,1 22,3 8,0 8,4 10,3 4,7 1,7 7,5 7,5 2,0 1,9 8,3 2,9 3,7 6,6 2,2 2,2 3,8 3,3 76

89 Figure 32: Average number of staff by qualification and MIIF type B1 B2 B3 B4 C1 C2 Tech Qualifications (NQF6) Bachelors Degree (NQF7) Honours Degree (NDF8) Master s Degree & above (NQF9 and 10) Tech Qualifications (NQF6) Bachelors Degree (NQF7) Honours Degree (NDF8) Master s Degree & above (NQF9 and 10) Tech Qualifications (NQF6) Bachelors Degree (NQF7) Honours Degree (NDF8) Master s Degree & above (NQF9 and 10) Tech Qualifications (NQF6) Bachelors Degree (NQF7) Honours Degree (NDF8) Master s Degree & above (NQF9 and 10) Tech Qualifications (NQF6) Bachelors Degree (NQF7) Honours Degree (NDF8) Master s Degree & above (NQF9 and 10) Tech Qualifications (NQF6) Bachelors Degree (NQF7) Honours Degree (NDF8) Master s Degree & above (NQF9 and 10) Ave number of staff 7.5 Professional associations Municipalities were asked to indicate how many of their qualified staff belonged to professional associations, Councils and the like. The following table indicates the average number of staff members in each of the categories of professional affiliation, indicating on average how many staff members were registered. Overall, the figures show how few municipal officials are on average registered with professional associations, with around 1 registered planner, one registered engineer and only one in two municipalities having a Chartered Accountant. Clearly, there is a significant shortage of registered professionals in the municipalities. Table 16: Professional associations Professional affiliations Easter n Cape Free Stat e Gau ten g KwaZu lu- Natal Lim pop o Mpum alang a Nort h West Northe rn Cape Weste rn Cape Gran d Total Professional Accountants (IMFO, SAICA) Chartered Accountants 0,6 0,9 0,8 2,1 2,4 2,8 1,4 1,9 2,1 1,8 0,2 0,6 0,3 0,9 0,3 0,5 0,4 0,1 0,6 0,5 77

90 Professional affiliations Easter n Cape Free Stat e Gau ten g KwaZu lu- Natal Lim pop o Mpum alang a Nort h West Northe rn Cape Weste rn Cape Gran d Total Engineering Technicians Engineering Technicians Registered Engineering Professionals Engineering Professionals Registered 2,6 1,8 2,9 2,8 3,5 2,6 1,9 1,4 4,5 2,8 0,6 0,3 0,5 1,4 0,6 0,5 0,3 0,5 2,7 1,1 2,0 2,0 3,5 3,5 3,0 1,8 2,0 1,4 3,9 2,8 1,1 0,7 1,6 1,5 1,8 0,9 0,7 0,6 2,4 1,3 Planners 1,1 0,5 5,8 3,0 2,8 3,9 0,9 0,9 3,2 2,4 Planners Registered Planning technicians Planning technicians registered 1,0 0,5 1,9 2,3 2,3 2,0 0,8 0,5 2,5 1,7 0,7 0,4 1,0 1,4 1,0 2,1 0,2 0,3 0,8 0,9 0,7 0,2 0,3 1,1 0,7 1,8 0,1 0,2 0,6 0,7 Figure 33: Average number of staff registered with planning, engineering and financial professional bodies by MIIF type B1 B2 B3 B4 C1 C2 Accountants Qualified Engineers Engineering Technologists Planners Planning technicians Accountants Qualified Engineers Engineering Technologists Planners Planning technicians Accountants Qualified Engineers Engineering Technologists Planners Planning technicians Accountants Qualified Engineers Engineering Technologists Planners Planning technicians Accountants Qualified Engineers Engineering Technologists Planners Planning technicians Accountants Qualified Engineers Engineering Technologists Planners Planning technicians

91 7.6 MFMA Competency Finally, the minimum competency regulations require Municipal Managers, CFOs, CEOs, Senior Managers, Heads of Supply Chain Management and Middle Managers to be competent as per the regulations. Municipalities were asked to indicate how many staff members had completed different aspects of this programme and it shows that on average nationally, over 25 staff members have completed these key competencies. Table 17: MFMA Competency MFMA Competency Easter n Cape Free Stat e Ga ute ng KwaZu lu- Natal Lim pop o Mpu malan ga Nort h West Northe rn Cape Weste rn Cape Gran d Total 1 Budgeting (116345) 18,6 26,0 35, 8 2 Costing (116345) 19,8 15,9 29, 3 30,1 34,3 36,5 28,4 12,3 38,7 29,8 28,5 33,0 34,4 28,4 12,0 26,8 26,4 3 Income expenditure (116345) 16,5 18,3 30, 8 29,9 32,5 35,3 28,4 11,6 29,4 26,8 4 Ethics (116345) 18,5 24,8 37, 5 30,1 30,7 35,8 28,4 12,4 41,8 29,5 5 IG Fiscal relations (116345) 6 Auditing planning implementation (116345) 7 Performance management (116345) 8 Internal control (116345) 9 Risk management (116345) 10 ICT finance (116345) 18,1 23,4 30, 0 19,1 24,1 26, 5 37,1 24,8 32, 8 18,3 24,6 29, 5 19,7 23,1 36, 0 16,2 22,2 21, 5 29,2 29,5 35,5 27,5 11,4 28,9 26,6 29,3 26,7 35,5 27,5 10,4 39,8 27,9 30,1 33,0 36,0 28,4 11,7 41,6 32,3 28,8 29,8 32,8 26,8 11,2 23,2 25,4 29,8 30,7 36,5 28,4 11,1 42,2 29,5 26,9 27,6 31,2 24,6 9,4 22,6 23,5 79

92 8 National overview of capacity to perform functions Section 156 of the Constitution deals with the powers and functions of municipalities and Section 229 deals with the fiscal powers. In Section 156 one finds that a municipality has executive authority in respect of, and has the right to, administer the local government matters listed in Part B of Schedule 4 and Part B of Schedule 5; and any other matter assigned to it by national or provincial legislation. These two processes through which a municipality obtains its powers and functions Schedules 4B/5B versus assignment of 4A/5A powers and functions require different processes and will be dealt with separately. The first set of functions are the constitutionally derived powers and functions (in Schedules 4B and 5B) for all municipalities. Given that category B and C municipalities share these powers, the Structures Act describes how such powers and functions should be shared. It is in this process that the Municipal Demarcation Board has a clearly defined role. Section 84 of the Municipal Structures Act deals with the division of functions and powers between district and local municipalities, stating that a district municipality has the following functions and powers: (a) Integrated development planning for the district municipality as a whole, including a framework for integrated development plans of all municipalities in the area of the district municipality. (b) Potable water supply systems. (c) Bulk supply of electricity, which includes for the purposes of such supply, the transmission, distribution and, where applicable, the generation of electricity. (d) Domestic waste-water and sewage disposal systems. (e) Solid waste disposal sites, in so far as it relates to- (i) the determination of a waste disposal strategy; (ii) the regulation of waste disposal; (iii) the establishment, operation and control of waste disposal sites, bulk 80

93 waste transfer facilities and waste disposal facilities for more than one local municipality in the district. (f) Municipal roads which form an integral part of a road transport system for the area of the district municipality as a whole. (g) Regulation of passenger transport services. (h) Municipal airports serving the area of the district municipality as a whole. (i) Municipal health services. (j) Fire fighting services serving the area of the district municipality as a whole, which includes- (i) planning, co-ordination and regulation of fire services; (ii) specialised fire fighting services such as mountain, veld and chemical fire services; (iii) co-ordination of the standardisation of infrastructure, vehicles, equipment and procedures; (iv) training of fire officers. (k) The establishment, conduct and control of fresh produce markets and abattoirs serving the area of a major proportion of the municipalities in the district. (l) The establishment, conduct and control of cemeteries and crematoria serving the area of a major proportion of municipalities in the district. (m) Promotion of local tourism for the area of the district municipality. (n) Municipal public works relating to any of the above functions or any other functions assigned to the district municipality. (o) The receipt, allocation and, if applicable, the distribution of grants made to the district municipality. (p) The imposition and collection of taxes, levies and duties as related to the above functions or as may be assigned to the district municipality in terms 81

94 of national legislation. Interestingly, this description does not use exactly the same wording as found in Schedules 4B and 5B, such as in the case of electricity where in Section 84 (c) District municipalities are given the power of generation and transmission of bulk electricity. Notwithstanding such differences though, in terms of Section 84 (3) the Minister may, after a consultative process, authorise a local municipality to perform a function or exercise the following powers: Electricity Water and sanitation Health. In terms of Section 85, the MEC for local government in a province may adjust the division of functions and powers between a district and a local municipality, however, an MEC may allocate a set of legislated functions or powers only if the municipality in which the function or power is vested lacks the capacity to perform that function or exercise that power and the MEC has consulted the Demarcation Board and considered its assessment of the capacity of the municipality concerned. The descriptions of Powers and Functions which follow are organized as follows: Those which may be authorised by the National Minister in terms of Section 84 of the Municipal Structures Act; Those which may be performed by both District and Local municipalities but which could be adjusted by the MEC in terms of Section 85 of the Municipal Structures Act; Those which are Local Municipality powers, but which may be adjusted by the MEC to be District powers in terms of Section 85 of the Municipal Structures Act; and Those which are not municipal powers but which may be assigned through other legislative processes 82

95 8.1 Functions for which Minister takes responsibility The first set of functions under consideration collectively include the major trading services as follows: Table 18: Major trading services functions Function Schedule Municipality Responsibilities for division of powers and functions Electricity reticulation 4B District Minister may adjust to Local Municipal health services 4B District Minister may adjust to Local Potable water supply systems 4B District Minister may adjust to Local Sanitation 4B District Minister may adjust to Local Definitions for each of these functions is provided in the Appendix. The table below indicates the number of local or district municipalities administering these functions across South Africa. Whilst most municipalities do perform the electricity function, interestingly, there are more municipalities which do perform the sanitation functions compared with the water function. This is explained by the fact that in a number of Districts, such as Ugu, the District performs the water function whilst the local municipalities perform the sanitation function. Table 19: Ministerial Authorised functions performed by Local or District municipalities Sanitation Services Electricity and gas reticulation Potable water Key Other Health Programmes (HI Districts Municipal health services Local's Number of municipalities The chart below indicates for each of the function areas, the number of municipalities per province who are performing each function. 83

96 Figure 34: Provincial Breakdown of Ministerial authorised functions performed by Local or District municipalities Eastern Cape Sanitation Services 31 Electricity and gas reticulation 32 Potable water 14 Municipal health services 8 Other Health Programmes 8 Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape It should be noted that presently there is no comprehensive set of gazettes recording what the current legal configurations of these adjustments are for comparison with the results as obtained from the municipalities. The average number of staff allocated to these functions is shown in the adjacent chart. Potable water and sanitation are generally well staffed functions. Electricity has a lower level of staff, and municipal and other health functions have a very low level of staff. The low level of staff for Other Health may be due to it being done together with Municipal health. Potable Water Sanitation Electricity Municipal Health Other Health Figure 35: Average staff numbers per function The Capex and Opex budgets for these functions are outlined below. 27 Figure 36: Capex and Opex 2017/18 budgets per ministers functions Potable Water Sanitation Electricity Municipal Health Other Health R R R R R R0 R Capex 2017/18 R R R R R R0 R Opex 2017/ Shared functions for which MECs take responsibility The second set of functions under consideration collectively include the following: 27 This provides information based only on responding municipalities and the figures have not been verified independently. 84

97 Table 20: Shared functions (MEC responsibility) Function Schedule Municipality Responsibilities for division of powers and functions Cemeteries, funeral parlours, crematoria 5B Shared Shared local and district function. MEC can adjust Firefighting services 4B Shared Shared local and district function. MEC can adjust Local tourism 4B Shared Shared local and district function. MEC can adjust Markets 5B Shared Shared local and district function. MEC can adjust Municipal abattoirs 5B Shared Shared local and district function. MEC can adjust Municipal airports 4B Shared Shared local and district function. MEC can adjust Municipal planning 4B Shared Shared local and district function. MEC can adjust Municipal public transport 4B Shared Shared local and district function. MEC can adjust Municipal roads 5B Shared Shared local and district function. MEC can adjust Refuse removal, refuse dumps and solid waste disposal 5B Shared Shared local and district function. MEC can adjust Definitions for these functions are provided in the Appendix. The second set of functions under consideration are those which may be performed by both District and Local municipalities but which could be adjusted by the MEC in terms of Section 85 of the Municipal Structures Act. The number of municipalities undertaking these functions is shown in the figure below. Solid waste is one of the most commonly performed functions amongst all municipalities, and is largely a local municipal function. Municipal Planning and Local Tourism functions are, in many cases undertaken by both local and district municipalities. The degree of overlap between the performance of these two functions between local and district municipalities is an area of potential concern. Very few municipalities undertake the municipal abattoirs function. 85

98 Table 21: Number of municipalities undertaking shared functions (MEC responsibility) Refuse removal, refuse dumps.. Municipal planning Local tourism Municipal roads Cemeteries, funeral parlours a.. Firefighting services Markets Municipal public works only in.. Municipal airports Municipal public transport Municipal abattoirs Key Districts Local's Number of municipalities The figure below indicates how these functions are performed by municipalities at a provincial level. Table 22: Number of municipalities undertaking shared functions per province Cemeteries, funeral parlours an.. Firefighting services Local tourism Markets Municipal abattoirs Municipal airports Municipal planning Municipal public transport Municipal public works Municipal roads Solid waste EC FS Gau KZN Lim Mpu NC NW WC The figure below indicates the average number of staff and average budget for each of the functions that could be shared between local and district municipalities. 28 The greatest operating budget amounts are spent on municipal planning, solid waste and municipal roads. Capital expenditure is dominated by public works expenditure, followed by municipal public transport. 28 This provides information based only on responding municipalities and the figures have not been verified independently. 86

99 Figure 37: Average operating and capital budgets for each of the functions per municipality Operating Expenditure 17/18 Capital Expenditure 17/18 Municipal abattoirs R R10 Markets R R Cemeteries, funeral parlo.. R R Local tourism R R Municipal airports R R Firefighting services R R Municipal public transport R R Municipal roads R R Municipal public works R R Solid waste R R Municipal planning R R R0 R R R Average expenditure per municipality 17/18 R0 R R R Average expenditure per municipality 17/ Local Functions for which MEC takes responsibility The third set of functions under consideration collectively include the following: Table 23: Functions for MEC s responsibility Function Schedule Municipality Responsibilities for division of powers and functions Air pollution 4B Local MEC could adjust to District Beaches and amusement facilities 5B Local MEC could adjust to District Billboards and public advertisements 5B Local MEC could adjust to District Building regulations 4B Local MEC could adjust to District Child care facilities 4B Local Section 297 of the Children s Bill 70 of 2003: Municipality to determine compliance to any structural, safety, health and other requirements of the municipality. MEC could adjust to District Cleansing and noise pollution 5B Local MEC could adjust to District Control of public liquor trading 5B Local MEC could adjust to District Control of public nuisances 5B Local MEC could adjust to District Facilities for care, burial of animals 5B Local MEC could adjust to District Fencing and fences 5B Local MEC could adjust to District Licensing of dogs 5B Local MEC could adjust to District Licensing of public food trading 5B Local MEC could adjust to District Local amenities 5B Local MEC could adjust to District 87

100 Function Schedule Municipality Responsibilities for division of powers and functions Local sport facilities 5B Local MEC could adjust to District Municipal Parks and Recreation 5B Local MEC could adjust to District Noise Pollution 5B Local MEC could adjust to District Pontoons, ferries, jetties, piers, harbours 4B Local MEC could adjust to District Pounds 5B Local MEC could adjust to District Public Places 5B Local MEC could adjust to District Storm water management systems 4B Local MEC could adjust to District Street Lighting 5B Local MEC could adjust to District Street Trading 5B Local MEC could adjust to District Trading regulations 4B Local MEC could adjust to District Traffic and Parking 5B Local MEC could adjust to District Definitions are provided in the Appendix. This section analyses local municipal powers, which may be adjusted by the MEC to be District powers in terms of Section 85 of the Municipal Structures Act. The figure below indicates the number of local or district municipalities administering these shared functions across South Africa. The most commonly performed functions are building regulations, followed by local sports facilities, and parks and recreation. Least commonly performed functions include child care facilities, pontoons, air pollution and the licencing of food sales. 88

101 Figure 38: Number of municipalities undertaking Local Functions Building regulations Local sport facilities Municipal parks and recreation Billboards and the display of advertisements.. Street trading Stormwater management systems in built-u.. Street lighting Traffic and parking Trading regulations Local amenities Public places Control of public nuisances Pounds Cleansing Facilities for the accommodation, care and b.. Beaches and amusement facilities Noise pollution Fencing and fences Licensing of dogs Child care facilities Pontoons, ferries, jetties, piers and harbour.. Air pollution Licensing and control of sale of food Key Local's Number of municipalities The provincial breakdown of municipalities performing these functions is outlined below. Figure 39: Number of municipalities performing local functions by province Air pollution Beaches and amusement faciliti.. Billboards and adverts in public.. Building regulations Care and burial of animals Child care facilities Cleansing Control of public nuisances Fencing and fences Licensing of dogs Licensing of food sales Local amenities Local sport facilities Municipal parks and recreation Noise pollution Pontoons, ferries, jetties, piers.. Pounds Public places Stormwater management Street lighting Street trading Trading regulations Traffic and parking EC FS Gau KZN Lim Mpu NC NW WC

102 The following table indicates the average budget per municipality for each of these functions. 29 It should be noted that some figures provided by municipalities were significantly larger than would be expected. These figures have been removed from the average calculation until they can be verified. Functions to which the highest average operating expenditures are allocated include parks and recreation, traffic and parking and local amenities. Capital expenditure is highest for the stormwater management and street lighting functions. Figure 40: Average operating and capital budgets for each of the functions Air pollution Beaches and amusement f.. Billboards and adverts in.. Building regulations Care and burial of animals Child care facilities Cleansing Control of public nuisances Fencing and fences Licensing of dogs Licensing of food sales Local amenities Local sport facilities Municipal parks and recre.. Noise pollution Pontoons, ferries, jetties,.. Public places Stormwater management Street lighting Street trading Trading regulations Operating Expenditure 17/18 Capital Expenditure 17/18 R R R R R R R R R R R R R R R R R R R R R Traffic and parking R R R R R R R R R R R R R R R R R R R R R R R The staffing averages for each of the functions are shown in the figure below. Cleansing has by a great margin, the greatest average number of staff with on average 72 staff members per municipality. 29 This provides information based only on responding municipalities and the figures have not been verified independently. 90

103 Figure 41: Average staff allocated to each of the functions Beaches and amusement f.. Building regulations Care and burial of animals Child care facilities Cleansing Control of public nuisances Fencing and fences Licensing of dogs Licensing of food sales Noise pollution Pontoons, ferries, jetties,.. Pounds Stormwater management Street lighting Traffic and parking Average staff per function Municipal Powers and Functions: Assignments Schedule 4A/5A of the Constitution requires an assignment process where national or provincial governments must go through a process to ensure that the matter could more effectively be administered by a local government and also that the municipality has the capacity to perform the function. These do not require any involvement by the MDB in such a process. The most commonly performed of these functions is Disaster Management which is undertaken by both District and Local municipalities. Libraries and Agriculture are also commonly undertaken. Figure 42: Performance of Schedule 4A and 5A functions by municipalities Disaster Management Libraries Agriculture Vehicle licensing Housing Municipal police and security guards Control of undertakings that sell liquor to th.. Traditional Authorities Museums other than national museums Welfare Ambulance services Number of municipalities Key Districts Local's 91

104 Figure 43: Provincial totals for the performance of Schedule 4A and 5A functions by municipalities Number of municipalities performing each function, by local and district municipality type Agriculture Ambulance services Control of liquor sales Disaster Management Environment Housing Libraries Municipal police and security Museums Traditional Authorities Vehicle licensing Welfare EC FS Gau KZN Lim Mpu NC NW WC The following subsections describe each of these functions Municipal policing Section 206 (7) of the Constitution of South Africa provides that national legislation must provide a framework for the establishment, powers, functions and control of municipal police services. In practice municipal police have three functions that they perform: Traffic policing Enforcement of municipal bylaws and regulations Preventing crime The procedure for establishing a municipal police service is laid down in the South African Police Service Amendment Act of This Act allows municipalities to apply to the government of the relevant province for permission to establish a municipal police service. The provincial Minister of Safety and Security may approve the application, after consultation with the National Commissioner of the South African Police Service, if: The application submitted by the municipality complies with the requirements laid down in the Act. The municipality has the resources at its disposal to provide for a MPS which complies with national policing standards on a 24-hour basis. 92

105 The establishment of a MPS will not negatively affect traffic policing. Provision has been made for civilian supervision of the MPS. The MPS will contribute to effective policing in that part of the province. The powers and responsibilities of South African municipal police are more restricted than those of the South African Police Service. It should be noted that municipal police forces do not conduct criminal investigations. Any person arrested by the municipal police on suspicion of having committed a criminal offence must be handed over to a SAPS station as soon as possible Housing Municipalities are responsible for undertaking the identification of land, planning, landuse control and providing basic services for housing. They are also responsible for maintaining residential areas after construction. Municipalities can, if accredited, develop new subsidised housing. The NDOH s Draft Revised Accreditation Framework for Municipalities to Administer National Housing Programmes of 2017 provides a broad intent to progressively enable municipalities to manage a range of housing programme instruments in order to allow for improved coordination and more integrated human settlements. This allows for the accreditation process. There is a separate draft 2017 Assignment Framework. The following indicates the number of municipalities indicating that they administer the housing function. It should be noted, though, that this may not mean that the function has been formally assigned. In addition, an examination of the latest MTREF Table A1030 shows that only four municipalities (Johannesburg, GT484, WC024 and WC032) indicated they had spent monies on housing top structures over and above what provinces had allocated as subsidies, yet municipalities such as ethekwini record budgets of over R1 billion spent on housing programmes. 30 MFMA Table A10: Basic service delivery measurement for 4 th quarter ending 30 June

106 8.4.3 Agriculture Municipalities are expected to include agricultural plans in their IDPs and to develop agricultural sector plans. For example, in terms of the draft 2016 Bill on the Preservation and Development of Agricultural Land Framework Act, municipalities are to play a largely planning role to ensure the preservation and development of agricultural land within a municipality. Some municipalities appear to have gone further though in just planning agricultural areas, but getting involved in agricultural development projects Disaster Management The Disaster Management Act, 2002 (Act No. 57 of 2002) (DMA) places a legal obligation on all organs of state and other institutional role players involved in disaster management to develop, regularly review, update, coordinate, share and implement disaster management plans (DMP). The DMA, in Section 15, assigns various powers and duties to the National Disaster Management Centre (NDMC) which, amongst others, includes not only advisory and consultative functions, but also, in Section 22, the power to give guidance and advice to stakeholders with regards to disaster management. Disaster management is listed as a functional area in Part A of Schedule 4 of the Constitution, meaning that both the national and provincial spheres of government are competent to develop and execute laws within this area and have powers and responsibilities in relation to disaster management. Disaster management has also been assigned to local government through the promulgation of the Disaster Management Act, 2002 (Act no 57 of 2002) Environment and Nature Conservation The National Environmental Management Act (NEMA) (No. 107 of 1998) is the overarching environmental legislation for the country. The objective of this legislation is To provide for co-operative environmental governance by establishing principles for decision making on matters affecting the environment, institutions that will promote co-operative governance and procedures for coordinating environmental functions exercised by organs of state; to provide for certain aspects of the administration and 94

107 enforcement of other environmental management laws; and to provide for matters connected therewith. In addition, there is there a wide variety of other legislation to address environmental issues, all of which impact on municipal powers and functions. 31 These Acts (mostly under the umbrella of NEMA) all seek to protect certain focused aspects of the environment and have an important influence on planning and service delivery Vehicle licensing In terms of the National Road Transport Act (Act 93 of 1996) and amendments, this function is concurrent between National and Provincial spheres. Municipalities play an agency role on behalf of provincial governments in executing this function Ambulance services Ambulance services fall under the Emergency Service Regulations of The Emergency Medical Services Regulations of 2017 made in terms of the Health Act of 2003 outline the process by which a licence for an EMS may be applied for and granted. Municipalities may either make such application to the Provincial Health Department or could have such assigned to them Libraries other than national libraries The National Department of Arts and Culture has drafted the South African Public Library and Information Services Bill, The Bill aims to: Ensure consistency in the delivery of public library and information services in the country; Put in place measures to ensure redress of the inequalities in the provision of public library and information services; and 31 Environmental Conservation Act No 73 of 1989; National Environmental Management Act No 107 of 1998 and its regulations (NEMA); National Environmental Management Act: Air Quality Act No 39 of 2004; National Environmental Management: Biodiversity Act No 10 of 2004; National Environmental Management: Integrated Coastal Management Act No 24 of 2008; National Environmental Management: Protected Areas Act No 57 of 2003; National Environmental Management: Waste Act No 59 of 2008; National Forestry Act No. 84 of 1998; National Heritage Resources Act No 25 of 1999; National Water Act No 36 of

108 Provide for principles, norms and standards for the provision of public library and information services. In terms of the Schedule 5 Part A of the Constitution, the public libraries function is a provincial function. The Bill seeks to provide a framework for putting in place measures to maintain essential national standards and to establish minimum standards required for the rendering of services as permitted by section 44(2) of the Constitution Museums other than national museums Subject to Schedules 4 and 5, the Constitution empowers national government to establish minimum standards for the nationally funded museum sector, as well as to ensure that the policies of museums administered by provincial and local governments are not in conflict with national policy Traditional Authorities The institution of traditional leadership was recognised in Section 212 of the Constitution. It is not a function of any sphere of government but with the establishment of local houses of traditional authorities at a District level, many municipalities have established formal relationships with such bodies Liquor Licences This function continues to reside at a Provincial level although, as in many other functions, it can be seen to be duplicating the municipal function of control over liquor establishments whilst also creating problems when a municipality may have by-laws against liquor being sold in certain places, yet Province may have issued a liquor licence Performance of assigned functions The following summary indicates the number of municipalities which indicated that they exercised these assigned functions. It should be noted, though, that this may not mean that the function has been formally assigned. 96

109 Table 24: Municipalities administering Schedule 4A or 5A functions 8.5 Powers and Functions Summary These sections have summarised the state of powers and functions presently being exercised by municipalities across South Africa. What has become clear, though, is that except for the larger functions or functions which are clearly delineated, many municipalities are not able to clearly indicate what capacity is presently deployed to exercise each function. This gets compounded through definitional issues such as Schedule 4B stating that municipalities exercise the function of Control of public liquor trading whilst in terms of Schule 4A provinces control liquor licences. It is suggested that whilst it would be too cumbersome to change the constitutional definitions, one way in which greater clarity and assessment of capacity could be made would be to combine some of the powers and functions under a set of standard classifications. This has been done by National Treasury through their Standard Classification Definitions which are as follows: Governance and Administration o Executive & Council o Budget & Treasury Office o Corporate Services Community and Public Safety 97

110 o Community & Social Services o Sport And Recreation o Public Safety o Housing o Health Economic and Environmental Services o Planning and Development o Road Transport o Environmental Protection Trading Services o Electricity o Water o Waste Water Management o Waste Management Other National Treasury s rationale for this is as follows: Government Finance Statistics Functions and Sub-functions are standardised to assist the compilation of national and international accounts for comparison purposes. Total Revenue by standard classification must reconcile to Total Operating Revenue shown in Budgeted Financial Performance (revenue and expenditure). Total Expenditure by Standard Classification must reconcile to Total Operating Expenditure shown in Budgeted Financial Performance (revenue and expenditure). All amounts must be classified under a standard classification (modified GFS). The GFS function 'Other' is only for Abbatoirs, Air Transport, Markets and Tourism - and if used must be supported by footnotes. Nothing else may be placed under 'Other'. Assign associate share to relevant classification. 98

111 With the development of mscoa such a process would be enhanced and would avoid the difficulties being associated with trying to assess the financial and human resource capacity needed to administer the function of liquor licences and control of liquor trading. 99

112 9 Conclusions and Recommendations This section reflects on the performance by function, local municipality and District municipality. 9.1 Performance of functions by Municipal Department The institutional organisation of municipalities is usually in terms of five broad functional areas (some of which may be further divided): Administration Financial management Technical Services Community Services Planning and economic development Information was collated from municipalities on the functional arrangement of the latter three areas and the table below provides a summary, per category of the volume of positive responses to the range of functions in each section, across provinces. The following table indicates which functions, for purposes of this project, were defined under each of the broad departmental groupings: Table 25: Departmental groupings Function Municipality Development and town planning services Municipal abattoirs Both Local tourism Both 32 Municipal airports Both 33 Municipal planning Both 34 Air pollution Local 32 Promotion of local tourism for the area of the district municipality (Systems Act) 33 Municipal airports serving the area of the district municipality as a whole (Systems Act) 34 Integrated development planning for the district municipality as a whole, including a framework for integrated development plans for the local municipalities within the area of the district municipality, taking into account the integrated development plans of those local municipalities (Systems Act) 100

113 Function Beaches and amusement facilities Billboards and the display of advertisements in public places Building regulations Control of public nuisances Control of undertakings that sell liquor to the public Facilities for the accommodation, care and burial of animals Fencing and fences Licensing and control of undertakings that sell food to the public Licensing of dogs Noise pollution Pontoons, ferries, jetties, piers and harbours, excluding the regulation of international and national shipping and matters related thereto Pounds Street trading Trading regulations Economic Development Environment and Nature Conservation Vehicle licensing Municipality Local Local Local Local Local Local Local Local Local Local Local Local Local Local Possible Possible Possible Technical services Municipal public works only in respect of the needs of municipalities in the discharge of their responsibilities to administer functions specifically assigned to them under this Constitution or any other law Both 35 Municipal public transport Both 36 Municipal roads Both 37 Refuse removal, refuse dumps and solid waste disposal Both Municipal public works relating to any of the above functions or any other functions assigned to the district municipality (Systems Act) 36 Regulation of passenger transport services (Systems Act) 37 Municipal roads which form an integral part of a road transport system for the area of the district municipality as a whole (Systems Act) 38 Solid waste disposal sites serving the area of the district municipality as a whole (Systems Act) 101

114 Function Water and sanitation services limited to potable water supply systems and domestic waste-water and sewage disposal systems Municipality District 39 Electricity and gas reticulation District 40 Cleansing Stormwater management systems in built-up areas Street lighting Traffic and parking Housing Local Local Local Local Possible Community Services Cemeteries, funeral parlours and crematoria Both 41 Firefighting services Both 42 Markets Both 43 Municipal health services District 44 Child care facilities Local amenities Local sport facilities Municipal parks and recreation Public places Agriculture Ambulance services Disaster Management Libraries Municipal police and security guards Museums other than national museums Other Health Programmes (HIV/AIDS, etc.) Local Local Local Local Local Possible Possible Possible Possible Possible Possible Possible 39 Bulk supply of water that affects a significant proportion of municipalities in the district (Systems Act). Bulk sewage purification works and main sewage disposal that affects a significant proportion of municipalities in the district (Systems Act) 40 Bulk supply of electricity that affects a significant proportion of municipalities in the district (Systems Act) 41 The establishment, conduct and control of cemeteries and crematoria serving the district as a whole (Systems Act) 42 Fire fighting services serving the area of the district municipality as a whole (Systems Act) 43 The establishment, conduct and control of fresh produce markets and abattoirs serving the area of the district municipality as a whole (Systems Act) 44 Municipal health services serving the area of the district municipality as a whole (Systems Act) 102

115 Function Traditional Authorities Welfare Municipality Possible Possible An analysis has been performed examining the degree to which the overall split of functions was being performed in each Department. Calculations were made of the number of municipalities performing each of the functions within each department as a percentage of all functions that could have been performed. This analysis, indicated in the following table, indicated that the most performed functions are those in the technical category, with 75% of all possible functions in the Technical services are being performed by the responding municipalities. This does vary across provinces, with KwaZulu-Natal being the lowest performer of technical functions and Mpumalanga and Western Cape being the highest. Planning functions follow closely at a national level, but as above, this varies across provinces. Gauteng has the lowest performance, and Northern Cape being the highest (however the relatively small number of respondents in each province mean that the numbers should be taken in the broader context) Finally, community service functions are on average undertaken in 69% of responses across provinces. 103

116 Figure 44: Performance of all functions Mpu Northe Easter Free Gauten KwaZul Limpo mala North rn Wester Nation n Cape State g u-natal po nga West Cape n Cape al Number Community Services Planning and Economic Technical % performance of function Community Services 71% 63% 71% 77% 64% 73% 63% 77% 64% 69% Planning and Economic 73% 71% 65% 75% 70% 78% 68% 86% 79% 74% Technical 70% 78% 72% 65% 74% 84% 73% 83% 84% 75% Development and Town Planning Services The figure below shows the performance of functions within the development and town planning sector. The figure reflects the responses to a query as to who performed the function. Where a function was outsourced, it is reflected as being performed by that municipality as they are responsible for managing the contractor who is performing the function. 104

117 Figure 45: Performance of planning and economic functions Municipal planning Economic Development Local tourism Building regulations Street trading Vehicle licensing Trading regulations Control of public nuisances Pounds Municipal airports Beaches and amusement facilities Noise pollution Fencing and fences Licensing of dogs Air pollution Municipal abattoirs Key Districts Locals Number of municipalities performing function The majority of reporting municipalities stated that the function most undertaken in this department is that of municipal planning, followed by local tourism, economic development, beaches and environment. All district municipalities and nearly all locals perform the planning and tourism functions. Functions commonly undertaken by districts also include licensing of public food, economic development and air pollution. Functions least performed by districts are street trading and abattoirs. The functions least performed by local municipalities are air pollution which appears to be primarily a district function Technical Services The figure below shows the performance of technical functions across the province. Where a function is outsourced, it is reflected as being performed by that municipality, as they are responsible for managing the contractor who is performing the function. 105

118 Figure 46: Performance of technical functions Sanitation Services Electricity and gas reticulation Potable water Municipal roads Street lighting Traffic and parking Housing Cleansing Municipal public transport Key Districts Locals Number of municipalities performing function The technical function most commonly performed is electricity supply, closely followed by refuse removal. Sanitation and the provision of potable water are the least performed functions in the province, with these appearing to be largely District functions. Only one district, Sarah Baartman, indicated that it performed neither of these functions Community Services In total, 71% of municipalities in the province are performing community services functions. This is slightly higher for District municipalities (74%) and lower for locals (70%). The functions performed by most municipalities are libraries, followed by agriculture, cemeteries, local sports facilities and parks and recreation. Of the municipalities that responded approximately two thirds noted that they did not perform Ambulance services. 106

119 Figure 47: Performance of community functions Disaster Management Cemeteries, funeral parlours and cre.. Local sport facilities Municipal parks and recreation Libraries Agriculture Firefighting services Local amenities Public places Markets Traditional Authorities Child care facilities Welfare Municipal health services Ambulance services Key Districts Locals Number of municipalities performing function 9.2 Human Capacity Overall staffing allocation The table below provides information on the full time staff employed across sectors 68% Technical Services Figure 48: Overall split of full time staff and provinces. The figure for full time staff has been used, as many of the figures for total staff submitted by municipalities were inaccurate, and in many cases were less than the total staff figures. Thus whilst the figures below may not be a precise measure of the number of staff, they are a useful indication of the sectors in which staff members are employed. Of the approximately full time staff across all reporting local and district municipalities in the country, the vast majority, 68% are employed in the technical services sector. development planning sector. 23% Community Services 9% Development and Planning 23% are in the community services sector and 9% are in the 107

120 Table 26: Staffing across sectors and provinces Eastern Free KwaZulu Limpop Mpumal North Norther Western Cape State Gauteng -Natal o anga West n Cape Cape TOTAL Community services Development and planning Technical services Total all Overall Human Capacity The figure below indicates municipal responses to whether they have adequately skilled staff across each function. The numbers represent the number of responses (not all municipalities responded to all questions, particularly where they do not perform that function). For both the community services and development planning sectors, approximately 62% of the responses indicated that insufficient staff were available for the function. The technical services sector had a lower level of responses, but these were fairly evenly balanced between positive and negative responses. Figure 49: Adequately skilled staff The details for each province are provided in the table below. Across the provinces Free state has the highest % of negative responses, with 81% of responses being negative, particularly in the development and planning functions. North West and Northern Cape had the next highest negative responses. The municipalities who noted that they generally did have sufficient skills to undertake their functions were 108

121 western cape, where on average more responses indicated a favourable skills capacity than negative, this is followed by Mpumalanga and then the Eastern Cape. Table 27: Adequate levels of skilled staff Community Services Development and Planning Technical Services All Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape Total No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes No Yes Vacancies The figure below provides an indication of the number of vacancies for each of the three sectors across the country in comparison to the number of full time staff per category. Figure 50: Vacancies Community Services Development and Planning Technical Services Full time staff Vacancies Full time staff Vacancies Full time staff Vacancies 69,9% 30,1% 72,7% 27,3% 21,1% 78,9% 109

122 On average, there are 32% vacancies in comparison to full time staff across the country. This is highest in the community services section at 43%, followed by development and planning at 38% and lowest in technical services at 27%. Across provinces, Mpumalanga has the highest percentage of vacancies, driven by a significant amount of vacancies in their community services division. The lowest percentage of vacancies are in the Northern Cape, with only 14% vacancies. Table 28: Vacancies Community Developme Technical services nt and services planning Total all Eastern Cape Vacancies % vacancies to full time staff 46% 28% 16% 21% Vacancies Free State % vacancies to full time staff 104% 17% 36% 40% Vacancies Gauteng % vacancies to full time staff 49% 46% 28% 36% KwaZulu- Natal Vacancies % vacancies to full time staff 38% 40% 29% 33% Vacancies Limpopo % vacancies to full time staff 45% 58% 31% 37% Vacancies Mpumalanga % vacancies to full time staff 69% 49% 39% 47% Vacancies North West % vacancies to full time staff 47% 75% 36% 41% Northern Cape Vacancies % vacancies to full time staff 35% 34% 9% 14% 110

123 Community Developme Technical services nt and services planning Total all Western Cape Vacancies % vacancies to full time staff 24% 20% 20% 21% vacancies Total % vacancies to full time staff 43% 38% 27% 32% Development and Town Planning Services Staff Allocation Nationally, there are 7313 full time staff in the development and town planning sector. The figure below indicates the allocation of full time staff within municipalities across all provinces. The highest allocation of staff is in the municipal planning function, which accounts for 22% of all full time staff members. This is followed by vehicle licensing with 16% of all staffing, and then environmental management, the control of public nuisances and economic development each constitute between 8 and 9% of all full time staff within this sector. There are relatively few staff allocated to pontoons, abattoirs, air pollution and municipal airports functions. 111

124 Figure 51: Development and planning staff Municipal planning Vehicle licensing Environment Control of public nuisances Economic Development Beaches and amusement.. Building regulations Local tourism Trading regulations Fencing and fences Street trading Pounds Care and burial of animals Noise pollution Billboards and adverts in.. Municipal airports Licensing of food sales Licensing of dogs Air pollution Municipal abattoirs Pontoons, ferries, jetties,.. 0.2% 0.2% 0.1% 1.0% 1.0% 1.0% 2.0% 1.9% 3.6% 3.4% 3.2% 2.8% 2.6% 4.3% 6.5% 6.3% 8.5% 9.1% 9.1% 14.8% 18.5% The table below shows the breakdown by province. Western Cape, then KZN have the highest number of staff in this sector. Table 29: Staff allocation by province Eastern Cape Free State Gauteng KwaZulu- Natal Limpopo Mpumalanga North West Northern Cape Western Cape TOTAL Air pollution Beaches and amusement facilities Billboards and public advertisements Building regulations Control of public liquor trading Control of public nuisances Economic Development Environment and Nature Conservation Facilities for care, burial of animals, pounds Fencing and fences Licensing of dogs Licensing of public food trading Local tourism Municipal abattoirs Municipal airports

125 Eastern Cape Free State Gauteng KwaZulu- Natal Limpopo Mpumalanga North West Northern Cape Western Cape TOTAL Municipal planning Noise Pollution Other Health Programmes (HIV/AIDS, etc.) Pontoons, ferries, jetties, piers, harbours Pounds Street Trading Trading regulations Vehicle licensing TOTAL DEVELOPMENT AND PLANNING However, it is useful to compare these figures to the total non-metro population in each province to get an idea of the total average number of population served by the number of staff. Obviously there are variations between the different municipalities, and geographical differences have not been taken into account, but this gives a broad overview of how well staffed each province is. The chart below indicates the ratio of total non-metro population to the number of staff per broad category. Here it is clear that the development planning staff in the North West have a significant additional burden, compared to those in the Western Cape. There are over persons per staff member in the North West, compared to 1175 persons per staff member in the Western Cape. This is in comparison to a national average of 4561 persons per staff at a national level. 113

126 Figure 52: Development planning population to staff Skills The figure below indicates municipal responses to whether they have adequately skilled staff across each function. The numbers represent the number of responses (not all municipalities responded to all questions, particularly where they do not perform that function). Figure 53: Adequately skilled staff 114

127 In general, within the development and planning function, the highest number of areas where municipalities noted that they do not have adequate skills are in the municipal airports and abattoirs functions, although these are not functions performed by many municipalities. Functions where municipalities noted that they do have sufficient skilled staff are in planning and economic development, followed by local tourism and vehicle licensing. The figure below reinforces this, with an indication of the total number of staff members with higher education in each function area. Almost a third, 27%, of all skilled staff in this category are in the municipal planning sector. This is followed by 19% in economic development and 9% in the local tourism function. Figure 54: Development and planning skilled staff Municipal planning Economic Development Local tourism Environment and Nature Conserva.. Building regulations Control of public nuisances Street Trading Trading regulations Vehicle licensing Billboards and public advertiseme.. Noise Pollution Municipal abattoirs Licensing of public food trading Control of public liquor trading Beaches and amusement facilities Facilities for care, burial of animal.. Fencing and fences Pounds Municipal airports Other Health Programmes (HIV/AI.. Pontoons, ferries, jetties, piers, ha.. Air pollution 8,6% 6,9% 5,9% 4,5% 4,3% 4,3% 3,6% 3,2% 2,9% 2,8% 2,6% 2,1% 0,7% 0,4% 0,3% 0,3% 0,3% 0,3% 0,3% 0,1% 19,3% 26,5% Vacancies In comparison to the total 7313 total full time staff, 2757 positions within the development planning function are reported vacant. These vacancies represent 38% of the full-time staff numbers. The highest number of vacancies are in the municipal planning function with 456 vacancies, and vehicle licensing with 403 vacancies. 115

128 9.2.5 Technical Services Staff Allocation The figure below indicates the allocation of full time staff within municipalities in the province. The numbers represent the total number of full time staff. Figure 55: Technical services staff Potable water supply systems 24,2% Refuse removal, refuse dumps and.. 17,8% Sanitation 17,6% Electricity reticulation 10,9% Municipal roads 6,4% Cleansing and noise pollution 4,6% Storm water management systems 4,6% Traffic and Parking 3,9% Municipal Public Works 3,5% Municipal public transport 2,7% Housing 1,9% Street Lighting 1,7% Other Health Programmes (HIV/AI.. 0,0% There are full time staff in the technical services function. Of these, the majority, 24% are in the water services sector. This is followed by 17% in each of the refuse removal and sanitation sectors. Lowest staffing figures are for street lighting and housing, each with under 2% of the total staff. The table below provides an indication of how the full time staff members are distributed across the provinces. Highest number of staff in the technical services are in the Western Cape, followed by KZN and Limpopo. Table 30: Technical services full time staff Eastern Cape Free State Gauteng KwaZulu- Natal Limpopo Mpumalanga North West Northern Cape Western Cape TOTAL Cleansing and noise pollution Electricity reticulation Housing Municipal public transport

129 Eastern Cape Free State Gauteng KwaZulu- Natal Limpopo Mpumalanga North West Northern Cape Western Cape TOTAL Municipal Public Works Municipal roads Potable water supply systems Refuse removal, refuse dumps and solid waste disposal Sanitation Storm water management systems Street Lighting Traffic and Parking TOTAL TECHNICAL SERVICES However, these figures must be compared to the population to give an indication of how well, on average, the population is being served. The proviso s discussed in the development and planning section apply here too. The chart below indicates the ratio of total non-metro population to the number of staff per broad category. Here it is clear that, as for the development and planning function, staff in the North West have a significant additional burden, compared to those in the Western Cape. There are 894 persons per staff member in the North West, compared to 228 persons per staff member in the Western Cape. This is in comparison to a national average of 605 persons per staff at a national level. KwaZulu Natal also have a low number of staff compared to the total population with 851 people to each technical staff member. 117

130 Figure 56: Technical services population by staff member Skills The figure below indicates municipal responses to whether they have adequately skilled staff across each function. The numbers represent the number of responses (not all municipalities responded to all questions, particularly where they do not perform that function). The highest area in which municipalities noted that they did not have skilled staff is for the municipal transport function. This sector also has the highest difference between municipalities who do have sufficient skilled staff and those who don t. For the housing, municipal roads and refuse removal functions, high numbers of municipalities noted that they did not have sufficiently skilled staff. However within these functions, other municipalities noted that they did have sufficient skilled staff. This suggests spatial discrepancies and budget shortages for some municipalities. 118

131 Figure 57: Adequately skilled staff The number of staff with higher education degrees which are relevant to their area of work is indicated in the figure below. This shows that nearly 20% of all staff with higher education degrees in the technical sector are in the traffic and parking function. This is followed by potable water, with 14% and then municipal roads with 12%. There are relatively low levels of skilled staff in the street lighting, electricity reticulation, public transport and municipal public works functions. Figure 58: Technical services skilled staff Traffic and Parking Potable water supply systems Municipal roads Refuse removal, refuse dumps and.. Sanitation Housing Storm water management systems Municipal Public Works Municipal public transport Cleansing and noise pollution Electricity reticulation Street Lighting Other Health Programmes (HIV/AI.. 3,9% 3,5% 3,1% 2,7% 5,4% 8,2% 8,0% 9,6% 10,3% 12,1% 14,3% 19,0% 119

132 Vacancies There are vacancies in the technical function categories across the province, in comparison to full time staff members. Thus in comparison to full time staff, there are 27% vacancies. Of the total vacancies in this sector 30% are in the potable water sector. This is followed by a relatively high number of vacancies in the electricity reticular and refuse removal functions Community Services Staff Allocation The figure below indicates the allocation of full time staff within municipalities across the country. The numbers represent the total number of full time staff. The highest number of full time staff are in the parks and recreation sector. This represents the labour intensive work required to manage parks and recreational facilities. Fire fighting and libraries also account for a significant proportion of the total full time staff members. Very low levels of full time staff are recorded for the ambulance, child care facilities, welfare, museums, markets and agriculture functions. Figure 59: Community services staff Municipal Parks and Recreation Firefighting services Libraries Cemeteries, funeral parlours, crem.. Municipal police and security guar.. Public Places Local amenities Municipal health services Local sport facilities Traditional Leadership Disaster Management Agriculture 0,8% Markets 0,5% Museums other than national mus.. 0,5% Welfare 0,4% Child care facilities 0,4% Other Health Programmes (HIV/AI.. 0,0% Ambulance services 0,0% 8,9% 8,0% 7,6% 6,9% 6,6% 5,6% 4,6% 3,5% 13,2% 14,0% 18,4% 120

133 The provincial variations on these staff numbers are indicated in the chart below. KZN and the Western Cape have the highest number of staff in this sector, and Free State and the Northern cape have the lowest. Table 31: Community services staffing Eastern Cape Free State Gauteng KwaZulu- Natal Limpopo Mpumalanga North West Northern Cape Western Cape TOTAL Agriculture Ambulance services 6 6 Cemeteries, funeral parlours, crematoria Child care facilities Disaster Management Firefighting services Libraries Local amenities Local sport facilities Markets Municipal health services Municipal Parks and Recreation Municipal police and security guards Museums other than national museums Other Health Programmes (HIV/AIDS, etc.) Public Places Traditional Leadership Welfare TOTAL COMMUNITY SERVICES The chart below indicates the ratio of total non-metro population to the number of staff per broad category. For the community services function, staff in the Free State have a significantly higher burden with almost 6000 population, on average, per staff member, compared to a national average of

134 Western Cape have 555 population per staff member and the national average is Figure 60: Community services population to staff member Skills The figure below indicates municipal responses to whether they have adequately skilled staff across each function. The numbers represent the number of responses (not all municipalities responded to all questions, particularly where they do not perform that function). 122

135 Figure 61: Adequately skilled staff community services Ambulance services, markets and traditional leadership are the areas that have the highest responses indicating insufficient skilled staff, and Libraries and cemeteries have the highest number with sufficient skills. Across the sector the greatest numbers of skilled personnel (with NQF7 and above) are found in the municipal health sector, which accounts for a quarter of the skills in this sector. This is followed by skilled staff in the libraries sector. There are very low levels of skilled staff in the other health, ambulances, museums, traditional leadership and child care sectors. 123

136 Figure 62: Community services skilled staff Municipal health services Libraries Cemeteries, funeral parlours, crem.. Disaster Management Agriculture Public Places Municipal Parks and Recreation Firefighting services Markets Local sport facilities Local amenities Municipal police and security guar.. Welfare Child care facilities Traditional Leadership Museums other than national mus.. Ambulance services Other Health Programmes (HIV/AI.. 5,3% 4,9% 3,9% 3,8% 3,3% 3,3% 2,9% 2,5% 2,4% 2,2% 1,5% 1,2% 0,2% 0,2% 7,6% 9,6% 18,8% 26,4% Vacancies There are 8182 vacancies across all functions in this sector in the country. This represents 43% of the total full time staff in the sector. Highest vacancy rates are in firefighting, municipal parks and cemeteries functions. 9.3 Infrastructure A key factor in the performance of many functions, is whether the municipality has the necessary infrastructure to carry out the function. In general, across all functions and all reporting municipalities, in 57% of cases, municipalities report that they have infrastructure to perform the function. This differs across different sectors and provinces. The table below provides an indication of the percentage of municipalities who perform functions and have the infrastructure for it. The data should be understood in the context of different functions: many functions, particularly in the planning and economic sectors do not require specific infrastructure in order to be undertaken. However, many of the technical and community services functions cannot be effectively undertaken without the required infrastructure. 124

137 On average, 55% of municipalities have the required infrastructure to undertake community services, 48% for planning and 72% for technical services. Table 32: Total percentage of functions being performed with infrastructure per province Eastern Cape Free State Gauteng KwaZulu- Natal Limpopo Mpumalanga North West Northern Cape Western Cape SA total Community Services 51% 19% 71% 57% 57% 67% 40% 42% 71% 55% Planning and Economic 49% 16% 72% 46% 40% 65% 42% 25% 69% 48% Technical 65% 78% 95% 63% 68% 81% 61% 81% 86% 72% In the Free State and North West, less than half of functions are supported by the required infrastructure. Figure 63: Differences between total number of functions performed across all municipalities and the number with infrastructure Community Services Planning and Economic Technical perform infrastructure perform infrastructure perform infrastructure Category B1 s and C2 s have the highest levels of supporting infrastructure, both with on average, 72 % and 74%. The lowest levels are seen in the B3, B4 and C1 type municipalities. Table 33: Total percentage of functions being performed with infrastructure by MIIF type B1 B2 B3 B4 C1 C2 Community Services 68% 57% 47% 55% 65% 71% Planning and Economic 68% 54% 41% 45% 63% 74% Technical 88% 78% 74% 63% 27% 71% 125

138 9.3.1 Development and Planning In the planning sector, the highest levels of infrastructure are found in the libraries, firefighting and cemeteries functions. Lowest levels of infrastructure are available for the ambulance, welfare, museums and agricultural functions. Table 34: Percentage of municipalities performing planning functions who have infrastructure by MIIF type B1 B2 B3 B4 C1 C2 Total Agriculture 13% 23% 21% 41% 57% 27% 30% Ambulance services 0% 0% 0% 22% 17% 0% 6% Cemeteries, funeral parlours 77% 87% 68% 58% 75% 88% 70% Child care facilities 29% 50% 29% 39% % Disaster Management 69% 64% 55% 51% 85% 80% 63% Firefighting services 100% 80% 65% 82% 90% 93% 82% Libraries 85% 87% 83% 89% % Local amenities 90% 100% 60% 88% % Local sport facilities 92% 79% 63% 63% % Markets 70% 44% 30% 37% 100% 50% 41% Municipal health services 0% 17% 10% 0% 69% 79% 47% Municipal parks and recreation 67% 80% 64% 60% % Municipal police and security 85% 57% 32% 64% % Museums 63% 23% 18% 31% % Other Health Programmes 67% 38% 35% 23% 33% 78% 41% Public places 50% 78% 56% 48% % Traditional Authorities 75% 20% 35% 42% 40% 82% 47% Welfare 38% 25% 4% 33% % Technical Services For technical services, public transport has the lowest level of infrastructure. This is particularly the case for the B2 s, B3 s and B4 s. Highest levels of infrastructure are available for the electricity, water and solid waste functions. 126

139 Table 35: Percentage of municipalities performing technical functions who have infrastructure by MIIF type B1 B2 B3 B4 C1 C2 Total Cleansing 80% 55% 50% 50% % Electricity 100% 96% 92% 44% 0% 40% 78% Housing 83% 62% 47% 26% % Municipal public transport 57% 17% 19% 35% 17% 40% 28% Municipal public works 78% 73% 63% 67% % Municipal roads 83% 81% 65% 89% 57% 43% 74% Sanitation 95% 71% 74% 30% 0% 81% 66% Solid waste 100% 100% 96% 91% 25% 25% 93% Stormwater management 67% 71% 73% 87% % Street lighting 100% 92% 75% 70% % Traffic and parking 77% 62% 76% 76% % Water 100% 89% 89% 109% 25% 95% 91% Community Services Many of the community services functions are highly dependent on infrastructure in order to perform their functions, including air pollution, amusement facilities, fencing, abattoirs etc. Under 15% of municipalities performing the pontoons and abattoirs functions have the infrastructure for it. High levels of infrastructure are available for the municipal planning and vehicle licencing functions, where approximately 80% of municipalities have the infrastructure for it. Table 36: Percentage of municipalities performing community functions who have infrastructure by MIIF type B1 B2 B3 B4 C1 C2 Total Air pollution 58% 25% 21% 13% % Beaches and amusement facilities 44% 60% 22% 18% % Billboards and adverts in public places 62% 58% 48% 34% % Building regulations 92% 87% 63% 58% % Care and burial of animals 22% 10% 24% 48% % Control of liquor sales 43% 55% 39% 45% % 127

140 B1 B2 B3 B4 C1 C2 Total Control of public nuisances 90% 55% 38% 43% % Fencing and fences 56% 33% 40% 39% % Licensing of dogs 29% 9% 19% 5% % Licensing of food sales 78% 50% 42% 53% % Local tourism 67% 83% 51% 53% 75% 67% 60% Municipal abattoirs 0% 11% 12% 13% 0% 40% 14% Municipal airports 71% 42% 16% 5% 40% 67% 26% Municipal planning 75% 87% 78% 79% 69% 94% 80% Noise pollution 60% 33% 21% 14% % Pontoons, ferries, jetties, piers etc 0% 10% 19% 7% % Pounds 75% 20% 23% 48% % Street trading 92% 79% 42% 56% % Trading regulations 64% 69% 38% 52% % Vehicle licensing 83% 87% 82% 71% % 9.4 Budget allocations The overall capital and operating budget allocations between different categories of functions are indicated in the diagram below. It should be noted that many of the budgets provided by the municipalities have been queried as they are either significantly lower or significantly higher than expected. For example, a figure of R4.9bn for air pollution operating expenses in Ubuhlebezwe was provided and has been excluded, but it demonstrates the general point that these figures are unaudited and until mscoa is in place, such figures should be treated with caution as they are largely estimates derived outside of the standard budgetary classifications. The figures provided in this section should be regarded as indicative and descriptive of general trends. 128

141 Figure 64: Total capital and operational budget splits for 2017/18 Community Services Development and Planning 8,3% 6,4% Capital budget 17/18 (est) Technical Services 85,3% Operating exp 17/18 (est) 31,4% 16,8% 51,8% Nationally, technical services are allocated 80% of the total capital budget, and 50% of the operating budget. Both development and planning and community services do not get a significant capital budgetary allocation. However, their operating budgets are significantly higher and community services are allocated 30% of the total operating budget and development and planning are allocated 20%. Amongst the provinces, the largest capital budget are in KZN and Gauteng. KZN also has the highest operational expenditure, followed by the Western Cape. Table 37: Capital and operating budgets Community Services Development and Planning Technical Services Capital budget Operating exp Capital budget Operating exp Capital budget Operating exp 17/18 (est) 17/18 (est) 17/18 (est) 17/18 (est) 17/18 (est) 17/18 (est) Eastern Cape R R R R R R Free State R R R R R R Gauteng R R R R R R KwaZulu-Natal R R R R R R Limpopo R R R R R R Mpumalanga R R R R R R North West R R R R R R Northern Cape R R R R R R Western Cape R R R R R R Grand Total R R R R R R Development and Town Planning Services The capital budget for development and planning is allocated primarily to municipal planning, which is allocated 50% of the total capital budget. This is followed by economic development and local tourism. 129

142 Note that a figure of R1.9bn of capital expenditure for air pollution in Ubuhlebezwe has been excluded from the figures below, as it seems considerably more than would be expected and is therefore being questioned. There are also questionably large figures of between R150m to R300m for building regulation capital from Chief Albert Luthuli municipality, Maruleng and Mogale City, which have been excluded until their validity can be ascertained. Figure 65: Capital and Operating budgets development and town planning services Capital budget 17/18 (est) Operating exp 17/18 (est) Municipal planning Economic Development Local tourism Building regulations Vehicle licensing Billboards and public advertiseme.. Trading regulations Control of public nuisances Beaches and amusement facilities Environment and Nature Conserva.. Pounds Municipal airports Street Trading Fencing and fences Facilities for care, burial of animal.. Other Health Programmes (HIV/AI.. Licensing of public food trading Noise Pollution Control of public liquor trading Pontoons, ferries, jetties, piers, ha.. Air pollution Municipal abattoirs 14,3% 4,0% 2,3% 0,3% 0,5% 0,1% 1,1% 0,8% 0,9% 2,3% 1,2% 0,9% 0,2% 0,6% 0,0% 0,0% 0,0% 0,2% 0,0% 0,0% 33,7% 36,7% 13,0% 5,6% 1,6% 3,2% 1,5% 1,4% 1,1% 0,6% 0,6% 0,5% 0,2% 0,3% 0,3% 0,2% 0,1% 0,2% 0,2% 0,1% 0,1% 0,1% 0,0% 69,5% 0% 20% 40% 60% 80% % of Total budget 0% 20% 40% 60% 80% % of Total budget As above, the largest proportion of operating expenditure is allocated to the municipal planning function, which receives 69% of the total operating budget. This is followed by economic development with 13% and local tourism with 6% Technical Services 18% of the capital budget for technical services is allocated to potable water supply. This is followed by 15% on municipal roads, 12 % on cleansing and 11% on municipal public works. 130

143 Figure 66: Capital and Operating budgets technical services Municipal roads Electricity reticulation Refuse removal, refuse dumps and.. Potable water supply systems Sanitation Cleansing and noise pollution Municipal Public Works Street Lighting Housing Storm water management systems Traffic and Parking Municipal public transport Other Health Programmes (HIV/AI.. Capital budget 17/18 (est) 14,7% 9,9% 8,1% 17,7% 8,8% 11,9% 10,8% 5,1% 6,6% 3,3% 0,5% 2,6% 0,0% Operating exp 17/18 (est) 20,0% 20,2% 19,1% 9,5% 7,7% 6,1% 5,2% 4,8% 1,0% 1,8% 2,9% 1,6% 0,0% 0% 5% 10% 15% 20% 25% 0% 5% 10% 15% 20% 25% % of Total budget % of Total budget Approximately 60% of the operating budget is split between electricity reticulation, municipal roads and refuse removal expenses, each being allocated approximately 20% of the budget Community Services The largest portion of the Community services budget is allocated to firefighting services, which receives 40% of the capital budget. Local sporting facilities has 19% of the budgetary allocation and local amenities 9%. Figure 67: Capital and Operating budgets community services Municipal police and security guar.. Firefighting services Municipal health services Disaster Management Municipal Parks and Recreation Local sport facilities Cemeteries, funeral parlours, crem.. Libraries Local amenities Public Places Child care facilities Agriculture Markets Welfare Other Health Programmes (HIV/AI.. Museums other than national mus.. Traditional Leadership Ambulance services Capital budget 17/18 (est) 3,5% 2,3% 1,2% 6,1% 18,9% 2,4% 5,2% 8,6% 4,0% 1,7% 3,7% 1,1% 0,4% 0,0% 0,0% 0,1% 41,0% Operating exp 17/18 (est) 37,1% 23,8% 17,0% 8,9% 3,4% 1,8% 2,2% 1,5% 1,2% 1,1% 0,8% 0,4% 0,2% 0,2% 0,1% 0,1% 0,0% 0% 10% 20% 30% 40% 50% 0% 10% 20% 30% 40% 50% % of Total budget % of Total budget 131

144 37% of the province s operational budget is spent on Municipal policing services, who are allocated nearly R12bn of the budget. Firefighting services receives 24% of the budget and municipal health services receives 17%. 9.5 Recommendations Through the various analyses completed during this project, a set of general recommendations has emerged: Defining and restructuring powers and functions There is a need to restructure how municipal powers and functions are conceptualised and defined. The current system is not structured around the major functions performed by municipalities and many municipalities are not clear on where the activities they undertake should fit in with the broader categorisation. A clearer structuring of the functions, with updated definitions would allow for easier data collection. Currently, for example, many municipalities seemed to be confused as to respond to the Pontoon function, possibly due to not being aware of what a pontoon is. There is a need to cluster together the municipal and other health functions as many municipalities would undertake them as a single programme. Therefore whilst it appears that many municipalities do not undertake the other health function, it is possibly clustered together with municipal health. There is possibly confusion about the split between local amenities, beaches and amusement, parks and recreation and public places functions. Fencing too should be incorporated into another function. There are also some functions which do not seem to be regularly performed, including dog licensing, animal care and pounds. Clarity on the need to perform these functions should be provided 132

145 9.5.2 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 Identification of capacity requirements to exercise 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 MECs: Identification of areas for rationalising 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 further legislative provisions where needed, including also making formal requests to the MDB where needed. 133

146 10 APPENDIX The following subsections indicate the definitions for municipal functions and the breakdown, based on December 2018 municipal responses, of the distribution of these functions across Provinces: Municipal abattoirs Definition: Municipal abattoirs means The establishment, conduct and/or control of facilities for the slaughtering of livestock and poultry In relation to a District Municipality it also means: The establishment, conduct and control of abattoirs serving the area of a major proportion of the municipalities in the district In relation to a Local Municipality it also means: The establishment, conduct and control of abattoirs serving the local municipality area only. According to Section 156(1) of the Constitution and Section 84(1) and (2) of the Municipal Structures Act, the municipal abattoirs function is a shared municipal function, with district and functions as stipulated above. However, as indicated the municipal abattoirs function may, subject to the provisions stated above, be adjusted by the MEC for local government. 134

147 Figure 68: Summary of performance of function Municipal abattoirs C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Eastern Cape Free State Gauteng Municipal abattoirs KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape Total Local tourism Definition: In relation to the district municipality, local tourism means the promotion of local tourism for the area of the district municipality. In relation to the local municipality, local tourism means the promotion, marketing and, if applicable, the development, of any tourist attraction within the area of the municipality with a view to attract tourists; to ensure access, and municipal services to such attractions, and to regulate, structure and control the tourism industry in the municipal area subject to any provincial and national legislation, and without affecting the competencies of national/provincial government pertaining to nature conservation, museums, libraries and provincial cultural matters. 135

148 According to Section 156(1) of the Constitution and Section 84(1) and (2) of the Municipal Structures Act, the local tourism function is a shared municipal function, with district and functions as stipulated above. However, as indicated the local tourism function may, subject to the provisions stated above, be adjusted by the MEC for local government. Figure 69: Summary of performance of function Local Tourism C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Eastern Cape Free State Gauteng KwaZulu-Natal Local tourism Limpopo Mpumalanga North West Northern Cape Western Cape Total

149 Municipal Airports Definition: Municipal Airport means a demarcated area on land or water or a building which is used or intended to be used, either wholly or in part, for the arrival or departure of aircraft which includes the establishment and maintenance of such facility including all infrastructure and services associated with an airport, and the regulation and control of the facility, but excludes airports falling within the competence of national and provincial governments. Additionally, in relation to the district it is a municipal airport serving the area of the district municipality as a whole. In relation to the local municipality it is a municipal airport serving the area of the local municipality only. According to Section 156(1) of the Constitution and Section 84(1) and (2) of the Municipal Structures Act, the municipal airports function is a shared municipal function, with district and functions as stipulated above. However, as indicated the municipal airports function may, subject to the provisions stated above, be adjusted by the MEC for local government. Figure 70: Summary of performance of function Municipal Airports C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Eastern Cape Free State Municipal airports Gauteng KwaZulu-Natal Limpopo Mpumalanga North West

150 C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Northern Cape Western Cape Total Municipal Planning Definition: Municipal planning means the compilation and implementation of an integrated development plan in terms of Chapter 5 of the Municipal Systems Act 32 of 2000 and the regulations to this act, particularly the regulations published under government notice R796 in 2001: Local Government: Municipal Planning and Performance Management Regulations. Municipal Planning includes the preparation of spatial development frameworks, as a sectoral plan forming part of integrated development plan. Additionally, in relation to the district municipality municipal planning means: Integrated development planning for the district as a whole, including a framework for integrated development plans of all municipalities in the area of the district municipality. Additionally, in relation to the local municipality municipal planning means: Integrated development planning for the local municipality in accordance with the framework for integrated development plans prepared by the district municipality Development and implementation of a town planning scheme or land use management scheme for the municipality including administration of land use development applications in the form of special consents, rezonings and departures. 138

151 According to Section 156(1) of the Constitution and Section 84(1) and (2) of the Municipal Structures Act, the municipal planning function is a shared municipal function, with district and functions as stipulated above. However, as indicated the municipal planning function may, subject to the provisions stated above, be adjusted by the MEC for local government. Figure 71: Summary of performance of function Municipal Planning C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Eastern Cape Free State Gauteng Municipal planning KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape Total Air pollution Definition: Air pollution means any change in the composition of the air by smoke, soot, dust (including fly ash), cinders, solid particles kind, gases, fumes, aerosols and odorous. According to Section 156(1) of the Constitution and Section 84(1) and (2) of the Municipal Structures Act, the air pollution function is a local municipality function. 139

152 However, as indicated the air pollution function may, subject to the provisions stated above, be adjusted by the MEC for local government. Figure 72: Summary of performance of function Air Pollution C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Eastern Cape Free State Gauteng KwaZulu-Natal Air pollution Limpopo Mpumalanga North West Northern Cape Western Cape Total

153 Building regulations Definition: Building regulations means the regulation, through by-laws, and legislated building regulations, of any temporary or permanent structure attached to, or to be attached to, the soil within the area of jurisdiction of a municipality, which must at least provide for: Approval of building plans, Building inspections, Issue of completion certificates, and Control of operations and enforcement of contraventions of building regulations if not already provided for in national and provincial legislation. According to Section 156(1) of the Constitution and Section 84(1) and (2) of the Municipal Structures Act, the building regulations function is a local municipality function. However, as indicated the building regulations function may, subject to the provisions stated above, be adjusted by the MEC for local government. Figure 73: Summary of performance of function Building Regulations C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Eastern Cape Free State Building regulations Gauteng KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape

154 C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Western Cape Total Pontoons, ferries, jetties, piers, harbours Definition: Pontoons, ferries, jetties, piers and harbours means the regulation of pontoons, ferries, jetties, piers and harbours, excluding the regulation of international and national shipping and matters related thereto, and matters falling within the competence of national and provincial governments. According to Section 156(1) of the Constitution and Section 84(1) and (2) of the Municipal Structures Act, the pontoons, ferries, jetties, piers and harbours function is a local municipality function. However, as indicated the pontoons, ferries, jetties, piers and harbours function may, subject to the provisions stated above, be adjusted by the MEC for local government. Figure 74: Summary of performance of function Pontoons, ferries, jetties, piers, harbours C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Pontoons, ferries, jetties, piers, harbours Eastern Cape Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga North West

155 C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Northern Cape Western Cape Total Trading regulations Definition: Trading regulations means the regulation of any area facility and/or activity related to the trading of goods and services within the municipal area not already being regulated by national and provincial legislation. According to Section 156(1) of the Constitution and Section 84(1) and (2) of the Municipal Structures Act, the trading regulations function is a local municipality function. However, as indicated the trading regulations function may, subject to the provisions stated above, be adjusted by the MEC for local government. Figure 75: Summary of performance of function Trading Regulations C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Eastern Cape Free State Trading regulations Gauteng KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape

156 C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Western Cape Total Beaches and Amusement Facilities Definition: Beaches means the area for recreational opportunities and facilities along the sea shore available for public use and any other aspect in this regard which falls outside the competence of the national and provincial government. Amusement facilities means a public place for entertainment. In relation to the local municipality: The establishment, operation, management, control and regulation of amusement facilities and beach facilities. According to Section 156(1) of the Constitution and Section 84(1) and (2) of the Municipal Structures Act, the beaches and amusement facilities function is a local municipality function. However, as indicated the beaches and amusement facilities function may, subject to the provisions stated above, be adjusted by the MEC for local government. Figure 76: Summary of performance of function Beaches and Amusement Facilities C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Beaches and amusement Eastern Cape Free State Gauteng

157 C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape Total Billboards and Public Advertisements Definition: Billboards and the display of advertisements in public places means: The display, regulation and control of written or visual descriptive material, any sign or symbol or light that is not intended solely for illumination or as a warning against danger which promotes the sale and / or encourages the use of goods and services found in: Streets Roads Thoroughfares Sanitary passages Squares or open spaces and or Private property. The above definition excludes any aspect that may be covered by provincial or national legislation. According to Section 156(1) of the Constitution and Section 84(1) and (2) of the Municipal Structures Act, the billboards and public advertisements function is a local 145

158 municipality function. However, as indicated the billboards and public advertisements function may, subject to the provisions stated above, be adjusted by the MEC for local government. Figure 77: Summary of performance of function Billboards and Public Advertisements C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Eastern Cape Billboards and public advertisements Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape Total Control of public nuisances Definition: Control of public nuisance means the regulation, control and monitoring of any activity, condition or thing interferes with the rights of the community by causing damage, annoyance or inconvenience to a person or a community. According to Section 156(1) of the Constitution and Section 84(1) and (2) of the Municipal Structures Act, the control of public nuisance function is a local municipality function. However, as indicated the control of public nuisance function may, subject to the provisions stated above, be adjusted by the MEC for local government. Figure 78: Summary of performance of function Control of public nuisances 146

159 C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Eastern Cape Free State Control of public nuisances Gauteng KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape Total Control of public liquor trading Definition: Control of undertakings that sell liquor to the public means the control of undertakings that sell liquor to the public that is permitted to do so in terms of provincial legislation, regulation and licenses, and includes an inspection service to monitor liquor outlets for compliance to license requirements in as far as such control and regulation are not covered by provincial legislation. According to Section 156(1) of the Constitution and Section 84(1) and (2) of the Municipal Structures Act, the "Control of undertakings that sell liquor to the public" function is a local municipality function. However, as indicated the "Control of undertakings that sell liquor to the public" function may, subject to the provisions stated above, be adjusted by the MEC for local government. Figure 79: Summary of performance of function Control of public liquor trading 147

160 C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Eastern Cape Free State Control of public liquor trading Gauteng KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape Total Facilities for care, burial of animals, pounds Definition: Facilities for the accommodation, care and burial of animals means the provision of and/or the regulation, control and monitoring of facilities which provide accommodation and care for well or sick animals and the burial or cremation of animals, including monitoring of adherence to any standards and registration requirements outlined in legislation. According to Section 156(1) of the Constitution and Section 84(1) and (2) of the Municipal Structures Act, the facilities for the accommodation care and burial of animals function is a local municipality function. However, as indicated the facilities for the accommodation care and burial of animals function may, subject to the provisions stated above, be adjusted by the MEC for local government. Figure 80: Summary of performance of function Facilities for care, burial of animals, pounds 148

161 C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Eastern Cape Facilities for care, burial of animals, pounds Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape Total Pounds Definition: Pounds means the provision, management, maintenance and control of any area or facility set aside by the municipality for the securing of any animal or object confiscated by the municipality in terms of its by laws. According to Section 156(1) of the Constitution and Section 84(1) and (2) of the Municipal Structures Act, the pounds function is a local municipality function. However, as indicated the pounds function may, subject to the provisions stated above, be adjusted by the MEC for local government. Figure 81: Summary of performance of function Pounds 149

162 C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Eastern Cape Free State Gauteng KwaZulu-Natal Pounds Limpopo Mpumalanga North West Northern Cape Western Cape Total Fencing and fences Definition: Fencing and fences means ensuring the provision and maintenance and/or regulation of any boundary or deterrents to animals and pedestrians along streets or roads. According to Section 156(1) of the Constitution and Section 84(1) and (2) of the Municipal Structures Act, the fencing and fences function is a local municipality function. However, as indicated the fencing and fences function may, subject to the provisions stated above, be adjusted by the MEC for local government. Figure 82: Summary of performance of function Fencing and fences C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Fencing and Eastern Cape Free State

163 C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Gauteng KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape Total Licensing of dogs Definition: Licensing of dogs means the control over the number and health status of dogs through a licensing mechanism. According to Section 156(1) of the Constitution and Section 84(1) and (2) of the Municipal Structures Act, the licensing of dogs function is a local municipality function. However, as indicated the licensing of dogs function may, subject to the provisions stated above, be adjusted by the MEC for local government. Figure 83: Summary of performance of function Licensing of dogs C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Licensing of dogs Eastern Cape Free State Gauteng KwaZulu-Natal

164 C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Limpopo Mpumalanga North West Northern Cape Western Cape Total Licensing of public food trading Definition: Licensing and control of undertakings that sell food to the public means: Ensuring the quality and the maintenance of food safety and hygiene related environmental health standards through regulation, a issuance of a certificate of acceptability and monitoring of any place that renders in the course of any commercial transaction the supply/handling of food intended for human consumption. Implement policy and regulations 'as provided for and prescribed in terms of the Foodstuffs, Cosmetics and Disinfectants Act, 1972 (Act 54 of 1972) and the National Health Act, (Act 61 of 2003), including the relevant regulations published under the mentioned Acts. According to Section 156(1) of the Constitution and Section 84(1) and (2) of the Municipal Structures Act, the licensing and control of undertakings that sell food to the public function is a local municipality function. However, as indicated the licensing and control of undertakings that sell food to the public function may, subject to the provisions stated above, be adjusted by the MEC for local government. Figure 84: Summary of performance of function Licensing of public food trading 152

165 C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Eastern Cape Free State Licensing of public food trading Gauteng KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape Total Noise pollution Definition: Noise pollution means the control and monitoring of any noise that adversely affects human health or well-being or the ecosystems useful to mankind, now or in the future. According to Section 156(1) of the Constitution and Section 84(1) and (2) of the Municipal Structures Act, the noise pollution function is a local municipality function. However, as indicated the noise pollution function may, subject to the provisions stated above, be adjusted by the MEC for local government. Figure 85: Summary of performance of function Noise pollution C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Nois e Eastern Cape

166 C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape Total Street trading Definition: Street trading means the control, regulation and monitoring of the selling of goods and services along a public pavement, road reserve and other public places but excluding fresh produces markets as defined above. According to Section 156(1) of the Constitution and Section 84(1) and (2) of the Municipal Structures Act, the street trading function is a local municipality function. However, as indicated the street trading function may, subject to the provisions stated above, be adjusted by the MEC for local government. Figure 86: Summary of performance of function Street trading C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Licensing of public Eastern Cape Free State

167 C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Gauteng KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape Total Environment and Nature Conservation Legal authority described in text as not a municipal function. Figure 87: Summary of performance of function Environment and Nature Conservation C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Eastern Cape Environment and Nature Conservation Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape Total

168 Vehicle licensing Legal authority described in text as not a municipal function. Figure 88: Summary of performance of function Vehicle licensing C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Eastern Cape Free State Gauteng Vehicle licensing KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape Total

169 Municipal roads Definition: Municipal roads means: The construction, maintenance, and control of a road which the public has the right to and includes, in addition to the roadway the land of which the road consists or over which the road extends and anything on that land forming part of, connected with, or belonging to the road. In relation to a district municipality it also means: Municipal roads which form an integral part of a road transport system for the area of the district municipality as a whole. In relation to a local municipality it also means: A street in a built-up area. According to Section 156(1) of the Constitution and Section 84(1) and (2) of the Municipal Structures Act, the municipal roads function is a shared municipal function, with district and functions as stipulated above. However, as indicated the municipal road function may, subject to the provisions stated above, be adjusted by the MEC for local government. 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 Department of Transport 157

170 Figure 89: Road length by road type and surface Figure 90: Summary of performance of function Municipal roads C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Eastern Cape Free State Gauteng Municipal roads KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape Total

171 Refuse removal, refuse dumps and solid waste disposal Definition: Refuse removal, refuse dumps and solid waste disposal means the removal of any household or other waste and the disposal of such waste in an area, space or facility established for such purpose, and includes the provision, maintenance and control of any infrastructure or facility to ensure a clean and healthy environment for the inhabitants of a municipality In relation to the District Municipality it means: Solid waste disposal sites, in so far as it relates toi. the determination of a waste disposal strategy for the district as a whole; ii. iii. the regulation of waste disposal strategy for the district as a whole; the establishment, operation and control of waste disposal sites, bulk waste transfer facilities and waste disposal facilities for more than one local municipality in the district. In relation to the Local Municipality it means: i. The determination of a waste disposal strategy for the local municipality only ii. iii. iv. The regulation of local waste disposal for the local municipality only The collection and removal of waste and transporting to a local waste disposal site, bulk transfer facility and district waste disposal site The establishment, operation and control of waste disposal sites, bulk waste transfer facilities and waste disposal facilities for the local municipality only 159

172 According to Section 156(1) of the Constitution and Section 84(1) and (2) of the Municipal Structures Act, the refuse removal, refuse dumps and solid waste disposal function is a shared municipal function, with district and functions as stipulated above. However, as indicated the refuse removal, refuse dumps and solid waste disposal function may, subject to the provisions stated above, be adjusted by the MEC for local government. 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. The percentage of households per province who have weekly refuse removal is shown in the figure below. Figure 91: Access to weekly refuse Figure 92: Summary of performance Refuse removal, refuse dumps and solid waste C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Eastern Cape Refuse removal, refuse dumps and solid waste Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga

173 C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes North West Northern Cape Western Cape Total Municipal Public Works Figure 93: Summary of performance of function Municipal public works C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Eastern Cape Free State Gauteng Municipal Public Works KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape Total

174 Municipal Public Transport Definition: Municipal public transport means: In relation to the local municipality the regulation and control, and where applicable, the provision of: Services for the carriage of passengers, whether scheduled or unscheduled, operated on demand along a specific route or routes or, where applicable, within a particular area Scheduled services for the carriage of passengers, owned and operated by the municipality, on specific routes In relation to the district: The regulation of passenger transport services. According to Section 156(1) of the Constitution and Section 84(1) and (2) of the Municipal Structures Act, the Municipal Public Transport function is a shared municipal function, with district and functions as stipulated above. However, as indicated the municipal public transport function may, subject to the provisions stated above, be adjusted by the MEC for local government. Figure 94: Summary of performance of function Municipal Public Transport C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Eastern Cape Municipal public transport Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga North West

175 C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Northern Cape Western Cape Total Electricity reticulation Definition: Electricity reticulation means bulk supply of electricity, which includes for the purposes of such supply, the transmission, distribution and, where applicable, the generation of electricity, and also the regulation, control and maintenance of the electricity reticulation network, tariff policies, monitoring of the operation of the facilities for adherence to standards and registration requirements, and any other matter pertaining to the provision of electricity in the municipal areas. According to Section 156(1) of the Constitution and Section 84(1) Municipal Structures Act, the electricity reticulation function is a district municipality function. However, Section 84(3)(a) of the Municipal Structures Act stipulates that the Minister may, by notice in the Government Gazette and, after consultation with the Cabinet member responsible for the functional area in question, the MEC for local government in the province and, if applicable, subject to national legislation, authorize a local municipality to perform a function or exercise a power mentioned in subsection (1)(b), (c), (d) or (i) in its area or any aspect of such function or power. The functions and powers referred to in subsection (1) include (c) the provision of electricity. 163

176 According to Section 156(1) of the Constitution and Section 84(1) Municipal Structures Act, the electricity reticulation function is a district municipality function. However, as indicated the electricity reticulation function may, subject to the provisions stated above, be adjusted by the MEC for local government. An overview of access to electricity by province is illustrated in the figure below. Figure 95: Access to electricity Figure 96: Summary of performance of function Electricity Reticulation C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Eastern Cape Free State Gauteng Electricity reticulation KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape Total

177 Potable Water Supply Systems Definition: Potable water supply systems means: The establishment or procurement, where appropriate, operation, management and regulation of a potable water supply system, including the services and infrastructure required for the regulation of water conservation, purification, reticulation and distribution; bulk supply to local supply points, metering, tariffs setting and debt collection; and provision of appropriate education so as to ensure reliable supply of a sufficient quantity and quality of water and effective water use amongst end-users, including informal households, to support life and personal hygiene. According to Section 156(1) of the Constitution and Section 84(1) Municipal Structures Act, the water and sanitation services function is a district municipality function. However, as indicated the water and sanitation services function may, subject to the provisions stated above, be adjusted by the MEC for local government. The functions and powers referred to in subsection (1) include (b) potable water supply systems and (d) domestic waste-water and sewage disposal systems. The provincial percentage of households with access to potable water is contained below. 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 StatsSA 165

178 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. Figure 97: Access to potable water Figure 98: Summary of performance of function Potable Water Supply Systems C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Eastern Cape Free State Potable water supply systems Gauteng KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape Total

179 Sanitation Definition: Domestic waste-water and sewage disposal systems means: The establishment or procurement, where appropriate, provision, operation, management, maintenance and regulation of a system, including infrastructure, for the collection, removal, disposal and/or purification of human excreta and domestic waste-water to ensure minimum standard of services necessary for safe and hygienic households. According to Section 156(1) of the Constitution and Section 84(1) Municipal Structures Act, the water and sanitation services function is a district municipality function. However, as indicated the water and sanitation services function may, subject to the provisions stated above, be adjusted by the MEC for local government. The functions and powers referred to in subsection (1) include (b) potable water supply systems and (d) domestic waste-water and sewage disposal systems. 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. 167

180 Figure 99: Access to flush toilets Figure 100: Summary of performance of function Sanitation C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Eastern Cape Free State Gauteng KwaZulu-Natal Sanitation Limpopo Mpumalanga North West Northern Cape Western Cape Total Storm Water Management Systems Definition: Storm water management systems in built-up areas means the management of systems to deal with storm water in built-up areas. 168

181 According to Section 156(1) of the Constitution and Section 84(1) and (2) of the Municipal Structures Act, the storm water management systems function is a local municipality function. However, as indicated the storm water management systems function may, subject to the provisions stated above, be adjusted by the MEC for local government. Figure 101: Summary of performance of function Storm Water Management Systems C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Eastern Cape Storm water management systems Free State Gauteng KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape Total Cleansing Definition: Cleansing means the cleaning of public streets, roads and other public spaces, either manually or mechanically. According to Section 156(1) of the Constitution and Section 84(1) and (2) of the Municipal Structures Act, the cleansing function is a local municipality function. However, as indicated the cleansing function may, subject to the provisions stated above, be adjusted by the MEC for local government. 169

182 Figure 102: Summary of performance of function Cleansing C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Eastern Cape Free State Cleansing and noise pollution Gauteng KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape Total Street lighting Definition: Street lighting means the provision and maintenance of lighting for the illuminating of streets. According to Section 156(1) of the Constitution and Section 84(1) and (2) of the Municipal Structures Act, the street lighting function is a local municipality function. However, as indicated the street lighting function may, subject to the provisions stated above, be adjusted by the MEC for local government. Figure 103: Summary of performance of function Street lighting C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Street Lighting Eastern Cape Free State

183 C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Gauteng KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape Total Traffic and parking Definition: Traffic and parking means the management and regulation of traffic and parking within the area of the municipality including but not limited to, the control over operating speed of vehicles on municipal roads but excluding any provincial competences as specified in legislation. According to Section 156(1) of the Constitution and Section 84(1) and (2) of the Municipal Structures Act, the traffic and parking function is a local municipality function. However, as indicated the traffic and parking function may, subject to the provisions stated above, be adjusted by the MEC for local government. Figure 104: Summary of performance of function Traffic and parking C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Traffic and Parking Eastern Cape Free State Gauteng

184 C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape Western Cape Total Housing The legal authority for Housing is described in the main body of the report as it is not a legislated municipal function. 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 172

185 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 105: Dwelling type Figure 106: Summary of performance of function Housing C1 C2 B1 B2 B3 B4 All No yes No yes No yes No yes No yes No yes No yes Eastern Cape Free State Gauteng Housing KwaZulu-Natal Limpopo Mpumalanga North West Northern Cape