[Client Name] Intermediate City Municipality Diagnostic Assessment

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[Client Name] Intermediate City Municipality Diagnostic Assessment [Client name] Intermediate City Municipality Diagnostic Assessment Drakenstein Municipality Final Report September 2019 REPORT SIGN- OFF This serves as the final report which incorporates comments made by the Drakenstein Municipality when draft findings were presented at a meeting held on 19 February 2019. This report will further be used as the basis for the Support Implementation Plan to be developed jointly with Drakenstein Municipality to address the gaps identified as part of this assessment. Approved by: Signature Date: Mr. DMG Mashitisho Director General: Department of Cooperative Governance Recommended for Signature Date: approval by: Mr. T Fosi DDG: Local Government Support and Interventions Management Report Signature Date: development managed by: Ms Nomkita Fani Director: Intermediate Cities and Spatial Planning Acronyms ACDP African Christian Democratic Party ANC African National congress CBD Central Business District CEF Capital Expenditure Framework CFO Chief Financial Officer CM City Manager CSP City Support Programme CWDM Cape Winelands District Municipality DA Democratic Alliance DC Development Contribution DECOG Department of Cooperative Governance DM Drakenstein Local Municipality DRDLR Department of Rural Development and Land Reform DWS Department of Water and Sanitation (national) EDP Economic Development Partnership EKK Economic Freedom Fighters ESTA Extension of Security of Tenure Act 62 of 1997 GRDP Gross Regional Domestic Product GVA Gross Value Added HDA Housing Development Agency HDI Human Development Index HSP Housing Sector Plan ICM Intermediary City Municipality IDP Integrated Development Plan IGR Inter Governmental Relations INEP Integrated National Electrification Programme IUDF Integrated Urban Development Framework IUDG Integrated Urban Development Grant LED Local Economic Development MAYCO Mayoral Committee MIG Municipal Infrastructure Grant MMC Mayoral Committee Member MTEF Medium Term Expenditure Framework NMT Non-Motorised Transport NT National Treasury PIE The Prevention of Illegal Eviction and Unlawful Occupation of Land Act, 1998 SACN South African Cities Network SALGA South African Local Government Association SCM Supply Chain Management SDF Spatial Development Framework SFIM Spatial Fiscal Impact Model SHI Social Housing Institution SMMEs Small Medium and Micro Enterprises SPLUMA Spatial Planning and Land Use Management Act 16 of 2013 SRA Special Rating Area UISP Upgrading of Informal Settlements Programme VPUU Violence Prevention through Urban Upgrading Programme WOSA Whole of Society Approach WWTW Wastewater treatment works Contents 1 Introduction ................................................................................................................... 1 1.1 Project background ............................................................................................ 1 1.2 Methodology ....................................................................................................... 1 1.3 Diagnostic Assessment Process ........................................................................ 2 2 The Drakenstein Municipality Assessment ................................................................ 2 2.1 The Problem Statement ..................................................................................... 2 3 Assessment Diagnostics .............................................................................................. 4 3.1 Economic Diagnostic .......................................................................................... 4 3.1.1 Socio-Economic Context 4 3.1.2 Socio-Economic Trends 7 3.1.3 Municipal Responses 7 3.1.4 Economic Improvement Areas 8 3.2 Spatial Diagnostic ............................................................................................... 9 3.2.1 Planning Context 9 3.2.2 Spatial Trends 11 3.2.3 Municipal Responses 12 3.2.4 Spatial Improvement Areas 13 3.3 Infrastructure and Service Delivery Diagnostic ................................................ 14 3.3.1 Demographic profile and Access to Basic Services 14 3.3.2 Human Settlement Trends 14 3.3.3 Infrastructure Trends 15 3.3.4 Municipal Infrastructure and Service Delivery Responses 16 3.3.5 Infrastructure and Service Delivery Improvement Areas 16 3.4 Governance and Organisational Development Diagnostic ............................... 17 3.4.1 Governance Context 17 3.4.2 Governance and Organisational Development Trends 18 3.4.3 Municipal Governance and Organisational Responses 19 3.4.4 Governance and Organisational Improvements 19 3.5 Municipal Finance Diagnostic ........................................................................... 20 3.5.1 Municipal Finance Context 20 3.5.2 Municipal Finance Trends 24 3.5.3 Municipal Finance Responses 24 3.5.4 Financial Improvements 24 4 Priority Strategic Support Needs ............................................................................... 25 Annexure A: Documents Reviewed ........................................................................................ 26 Annexure B: Drakenstein Municipality Interview Schedule ................................................. 28 Intermediate City Municipality Diagnostic Assessment Report – Drakenstein Local Municipality 1 Introduction 1.1 Project background In April 2016, Cabinet approved the Integrated Urban Development Framework (IUDF) as an “all- of-government” initiative. The IUDF sets out the policy framework for transforming and restructuring South Africa’s urban spaces, guided by the vision of creating “liveable, safe, resource efficient cities and towns that are socially integrated, economically inclusive and globally competitive”. As part of the implementation of the IUDF, National Treasury (NT) through its Cities Support Programme (CSP) and the South African Local Government Association (SALGA), through their small-town regeneration programme, are focusing on metropolitan municipalities and small towns/rural municipalities respectively. The Department of Cooperative Governance (DCOG) is responsible for implementing the IUDF in the 39 intermediary cities, through the programme called Intermediary Cities Municipal (ICM) Support Programme. The purpose of the ICM Support Programme is to help translate IUDF policy into practical programmes of action in the intermediate cities. Support offered by the programme will include technical assistance, enabling environment support (via legislation, regulations, national and provincial policy, inter-governmental relations (IGR) facilitation etc.) and access to a new infrastructure grant, the Integrated Urban Development Grant (IUDG). The technical assistance elements will be phased in, and will be informed by a diagnostic assessment, which is the subject of this report, to target technical assistance interventions (Figure 2). The diagnostic assessments are intended to National government be a means to rapidly assess and focus Integrated Urban Development Framework attention on the key strategic challenges facing intermediary city municipalities using five CSP DCOG SALGA lenses: economic development; spatial Metros ICMs Small and rural planning; infrastructure and service delivery, governance and organisational development; Diagnostic ICM Support programme assessment and, finance (Figure 1). In addition, overarching issues of organisational capacity IUDG Technical support Reduction of regulatory and governance are to be assessed. burden Figure 2: Purpose of the diagnostic 1.2 Methodology assessment as part of the IUDF implementation in ICMs The methodology for the diagnostic assessment is based on the Strategic Development Review methodology employed by the CSP in metros, and is intended to be a rapid, focused Spatial strategic review by a small expert team, working in Economic conjunction with government department officials. The assessment is undertaken in five phases, as indicated in Figure 3. Infrastructur Finance e Governanc e Figure 1: Five Diagnostics 1 Intermediate City Municipality Diagnostic Assessment Report – Drakenstein Local Municipality Self- Feedback assessment, Two-day presentation Municipal document Assessment assessment and inception review, and report visit municipal meeting data input analysis Figure 3: Diagnostic assessment methodology 1.3 Diagnostic Assessment Process This report presents the results of the diagnostic assessment of the Drakenstein Local Municipality (DM). The diagnostic assessment methodology was followed with the municipal inception meeting being held on the 15th October 2018. The purpose of this meeting was to introduce the project to the DM and for DCOG to facilitate the setting up of an IUDF Programme Steering Committee. The City Manager (CM) and senior management team gave their full support to the process and the Chief Financial Officer (CFO) was appointed the overall municipal co-ordinator. The DM compiled an electronic resource library of background municipal documentation that was reviewed by the diagnostic assessment team. (See Annexure A) The inception meeting was followed by a self-diagnostic questionnaire that was completed and signed off by the CM, where the DM identified strategic challenges and improvement areas. The diagnostic assessment by the expert team was undertaken on 15th and 16th November 2018, during which time the assessment team interviewed the political leadership, a large range of key officials and external stakeholders. (See Annexure B: The interview programme) The CFO’s office provided critical and valued support in the setting up of the interviews and managing
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