Annual Report 2016/2017

This Annual Report is drafted in terms of the Local Government: Municipal Finance Management Act, 2003 (Act 56 of 2003) and the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000).

Drakenstein Municipality Civic Centre Berg River Boulevard PAARL 7622

Website: www.drakenstein.gov.za Telephone: 021 807 4615 E-mail: [email protected]

TABLE OF CONTENTS

GLOSSARY...... 11 CHAPTER 1: EXECUTIVE MAYOR’S FOREWORD AND EXECUTIVE SUMMARY ...... 15 COMPONENT A: EXECUTIVE MAYOR’S FOREWORD ...... 16 COMPONENT B: EXECUTIVE SUMMARY ...... 18 1.1 CITY MANAGER’S OVERVIEW ...... 18 1.2 MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW ...... 21 1.3 SERVICE DELIVERY OVERVIEW ...... 25 1.4 FINANCIAL HEALTH OVERVIEW ...... 27 1.5 ORGANISATIONAL DEVELOPMENT OVERVIEW ...... 32 1.6 AUDITOR-GENERAL REPORT ...... 33 1.7 STATUTORY ANNUAL REPORT PROCESS ...... 34 CHAPTER 2: GOVERNANCE ...... 36 COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE ...... 37 2.1 POLITICAL GOVERNANCE ...... 37 2.2 ADMINISTRATIVE GOVERNANCE ...... 43 COMPONENT B: INTERGOVERNMENTAL RELATIONS ...... 47 2.3 INTERGOVERNMENTAL RELATIONS ...... 47 COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION ...... 48 2.4 PUBLIC MEETINGS ...... 50 2.5 IDP PARTICIPATION AND ALIGNMENT ...... 53 COMPONENT D: CORPORATE GOVERNANCE ...... 53 2.6 RISK MANAGEMENT ...... 53 2.7 INTERNAL AUDIT ...... 54 2.8 ANTI-CORRUPTION AND FRAUD ...... 55 2.9 SUPPLY CHAIN MANAGEMENT ...... 55 2.10 BY-LAWS ...... 57 2.11 WEBSITES ...... 57 2.12 PUBLIC SATISFACTION WITH MUNICIPAL SERVICES ...... 58 CHAPTER 3: SERVICE DELIVERY PERFORMANCE ...... 59 COMPONENT A: BASIC SERVICES ...... 61 3.1 WATER PROVISION...... 61 3.2 WASTEWATER (SANITATION) PROVISION...... 66

3.3 ELECTRICITY ...... 72 3.4 WASTE MANAGEMENT ...... 78 3.5 HOUSING ...... 83 3.6 FREE BASIC SERVICES AND INDIGENT SUPPORT ...... 88 COMPONENT B: ROAD TRANSPORT ...... 90 3.7 ROADS ...... 90 3.8 STORMWATER DRAINAGE ...... 93 COMPONENT C: PLANNING AND ECONOMIC DEVELOPMENT ...... 97 3.9 PLANNING ...... 97 3.10 LOCAL ECONOMIC DEVELOPMENT (INCLUDING TOURISM AND MARKET PLACES) ...... 104 COMPONENT D: COMMUNITY AND SOCIAL SERVICES ...... 108 3.11 LIBRARIES ...... 109 3.12 CEMETERIES AND CREMATORIA ...... 113 3.13 CHILD CARE, AGED CARE AND SOCIAL PROGRAMMES ...... 114 COMPONENT E: ENVIRONMENTAL PROTECTION ...... 117 3.14 POLLUTION CONTROL ...... 119 3.15 BIODIVERSITY, LANDSCAPE (INCLUDING OPEN SPACES) ...... 120 COMPONENT F: SECURITY AD SAFETY ...... 122 3.16 TRAFFIC, LICENSING AND LAW ENFORCEMENT...... 122 FIRE SERVICE ...... 124 COMPONENT G: SPORT AND RECREATION ...... 128 3.18 SPORT AND RECREATION ...... 128 COMPONENT H: CORPORATE POLICY OFFICES AND OTHER SERVICES ...... 130 3.19 EXECUTIVE AND COUNCIL ...... 130 3.20 FINANCIAL SERVICES ...... 133 3.21 HUMAN RESOURCE SERVICES ...... 135 3.22 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES ...... 138 3.23 PROPERTY, LEGAL, RISK MANAGEMENT AND PROCUREMENT ...... 142 CHAPTER 4: ORGANISATIONAL DEVELOPMENT PERFORMANCE ...... 148 COMPONENT A: INTRODUCTION TO THE MUNICIPAL PERSONNELEMPLOYMENT EQUITY...... 149 4.1 EMPLOYMENT EQUITY ...... 149 4.2 EMPLOYEE TOTALS, TURNOVER AND VACANCIES ...... 150 COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE ...... 151 4.3 POLICIES ...... 152

4.4 INJURIES, SICKNESS AND SUSPENSIONS ...... 152 4.5 PERFORMANCE REWARDS ...... 154 COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE ...... 155 COMPONENT D: MANAGING THE WORKFORCE EXPENDITURE ...... 158 4.6 EMPLOYEE EXPENDITURE ...... 159 CHAPTER 5: FINANCIAL PERFORMANCE ...... 160 COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE ...... 161 5.1 GRANTS ...... 163 5.2 ASSET MANAGEMENT ...... 164 5.3 FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS ...... 168 COMPONENT B: SPENDING AGAINST CAPITAL BUDGET ...... 172 5.4 CAPITAL EXPENDITURE...... 172 5.6 CAPITAL SPENDING ON FIVE LARGEST PROJECTS ...... 174 5.7 BASIC SERVICE AND INFRASTRUCTURE BACKLOGS – OVERVIEW ...... 175 COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS ...... 177 5.8 CASH FLOW ...... 178 5.9 BORROWING AND INVESTMENTS ...... 179 5.10 PUBLIC-PRIVATE PARTNERSHIPS ...... 180 COMPONENT D: OTHER FINANCIAL MATTERS ...... 181 5.11 SUPPLY CHAIN MANAGEMENT ...... 181 5.12 GRAP COMPLIANCE ...... 181 CHAPTER 6: AUDITOR-GENERAL AUDIT FINDINGS ...... 184 COMPONENT A: AUDITOR-GENERAL OPINION OF FINANCIAL STATEMENTS 2015/16 ...... 185 COMPONENT B: AUDITOR-GENERAL OPINION 2016/17 ...... 185 6.1 AUDITOR-GENERAL REPORT 2016/17 ...... 185 APPENDIX A: COUNCILLORS, COMMITTEE ALLOCATION AND COUNCIL ATTENDANCE ...... 188 APPENDIX B: COMMITTEES AND COMMITTEE PURPOSES ...... 191 APPENDIX C: SECOND- AND THIRD-TIER ADMINISTRATION STRUCTURE ...... 192 APPENDIX D: FUNCTIONS OF MUNICIPALITY ...... 193 APPENDIX E: WARD REPORTING ...... 194 APPENDIX F: WARD INFORMATION ...... 203 APPENDIX G: RECOMMENDATIONS OF THE MUNICIPAL AUDIT COMMITTEE 2016/17 ...... 204 APPENDIX H: LONG-TERM CONTRACTS AND PUBLIC-PRIVATE PARTNERSHIPS ...... 207 APPENDIX I: DISCLOSURES OF FINANCIAL INTEREST ...... 208

APPENDIX J: REVENUE PERFORMANCE BY VOTE AND BY SOURCE ...... 215 APPENDIX J (i): REVENUE PERFORMANCE BY VOTE ...... 215 APPENDIX J (ii): REVENUE PERFORMANCE BY SOURCE ...... 216 APPENDIX K: CONDITIONAL GRANTS RECEIVED: EXCLUDING MIG ...... 217 APPENDIX L: CAPITAL EXPENDITURE – NEW AND UPGRADE/RENEWAL PROGRAMMES ...... 218 APPENDIX L (i): CAPITAL EXPENDITURE – NEW ASSETS PROGRAMME ...... 218 APPENDIX L (ii): CAPITAL EXPENDITURE – Upgrade/Renewal Programme ...... 220 APPENDIX M: CAPITAL PROGRAMME BY PROJECT 2016/17 ...... 222 APPENDIX N: CAPITAL PROGRAMME BY PROJECT BY WARD 2016/17 ...... 224 APPENDIX O: SERVICE CONNECTION BACKLOGS AT SCHOOLS AND CLINICS ...... 225 APPENDIX P: SERVICE BACKLOGS EXPERIENCED BY THE COMMUNITY WHERE ANOTHER SPHERE OF GOVERNMENT IS RESPONSIBLE FOR SERVICE PROVISION ...... 226 APPENDIX Q: DECLARATION OF LOANS AND GRANTS MADE BY THE MUNICIPALITY ...... 228 APPENDIX R: DECLARATION OF RETURNS NOT MADE IN DUE TIME UNDER MFMA S71...... 232 APPENDIX S: PRESIDENTIAL OUTCOME FOR LOCAL GOVERNMENT ...... 232 VOLUME i: REPORT OF THE AUDITOR-GENERAL 2016/2017 ...... 233 VOLUME ii: AUDIT OUTCOME IMPROVEMENT PLAN ...... 241 VOLUME iii: REPORT OF THE AUDIT COMMITTEE 2016/2017 ...... 242 VOLUME iv: ANNUAL AUDITED FINANCIAL STATEMENTS 2016/17 ...... 244 VOLUME v: ANNUAL PERFORMANCE REPORT 2016/2017 ...... 363

LIST OF GRAPHS Graph 1: Households ...... 21 Graph 2: Socio-Economic Status ...... 22 Graph 3: Tuberculosis (TB) ...... 24 Graph 4: Total Capital Expenditure ...... 31 Graph 5: Macro Organisational Structure ...... 44 Graph 6: Water use by Sector ...... 63 Graph 7: Access to water ...... 64 Graph 8: Sanitation/Sewerage ...... 68 Graph 9: Electricity Service delivery Statistics ...... 75 Graph 10: Office paper recycling project ...... 81 Graph 11: Percentage waste recycling participation ...... 81 Graph 12: Free basic household services ...... 88 Graph 13: Road Infrastructure Costs...... 91 Graph 14: Stormwater infrastructure costs ...... 95 Graph 15: Average number of day’s sick leave ...... 153 Graph 16: Workforce Expenditure Trends ...... 159 Graph 17: Liquidity Ratio ...... 168

Graph 18: Cost Coverage ...... 168 Graph 19: Outstanding Service Debtors to Revenue ...... 169 Graph 20: Debt Coverage ...... 169 Graph 21: Capital Charges to Operating Expenditure ...... 170 Graph 22: Creditors System Efficiency ...... 170 Graph 23: Employee Cost ...... 171 Graph 24: Repairs and Maintenance ...... 171 Graph 25: Capital Expenditure ...... 172 Graph 26: Actual Borrowings ...... 180

LIST OF TABLES Table 1: Population Details ...... 21 Table 2: Socio-economic Status...... 22 Table 3: Overview of neighbourhoods in Drakenstein Municipality ...... 22 Table 4: Natural Resources ...... 23 Table 5: Safety and Security ...... 23 Table 6: HIV/AIDS ...... 24 Table 7: Financial Overview 2016/17 ...... 28 Table 8: Operating Ratios ...... 30 Table 9: Total Capital Expenditure ...... 31 Table 10: Statutory Annual Report Process ...... 35 Table 11: Political Structure ...... 40 Table 12: Executive Mayoral Committee ...... 42 Table 13: Executive Mayoral Committee after the Local Government Election ...... 43 Table 14: Top Administrative Structure ...... 46 Table 15: Public Meetings ...... 53 Table 16: IDP Participation and Alignment Criteria ...... 53 Table 17: Procurement per sector ...... 56 Table 18: By-laws introduced during 2016/17 ...... 57 Table 19: By-laws passed ...... 57 Table 20: Municipal Website Content ...... 58 Table 21: Total use of water by sector (cubic metres) ...... 62 Table 22: Water Service Delivery Levels ...... 63 Table 23: Households – Water Service Delivery Levels below the minimum ...... 64 Table 24: Water Service Policy Objectives taken from IDP ...... 64 Table 25: Employees – Water Services ...... 65 Table 26: Financial Performance 2016/17 – Water Services ...... 65 Table 27: Capital Expenditure 2016/17 – Water Services ...... 66 Table 28: Sanitation Service Delivery Level ...... 69 Table 29: Households – Sanitation Service Delivery Levels below the minimum ...... 69 Table 30: Wastewater (Sanitation) Service Policy Objectives taken from the IDP...... 69 Table 31: Employees – Sanitation Services ...... 70 Table 32: Financial Performance 2016/17 – Sanitation Services ...... 70 Table 33: Capital Expenditure 2016/17 – Sanitation Services ...... 71 Table 34: Electricity Service Delivery Levels ...... 75

Table 35: Households – Electricity Service Delivery Levels below the minimum ...... 76 Table 36: Electricity Service Policy Objectives taken from IDP ...... 76 Table 37: Employees – Electricity Services ...... 76 Table 38: Financial Performance 2016/17 – Electricity Services ...... 77 Table 39: Capital Expenditure 2016/17 – Electricity Services ...... 77 Table 40: Solid Waste Service Delivery Levels ...... 78 Table 41: Households – Solid Waste Service Delivery Levels below the minimum ...... 78 Table 42: Waste Management Service Policy Objectives taken from IDP ...... 79 Table 43: Employees – Solid Waste Management Services ...... 79 Table 44: Financial Performance 2016/17 – Solid Waste Management Services ...... 79 Table 45: Capital Expenditure 2016/17 – Solid Waste Management Services ...... 80 Table 46: Percentage waste recycling participation ...... 81 Table 47: Housing Demand Database ...... 86 Table 48: Housing Service Policy Objectives taken from IDP ...... 86 Table 49: Employees – Housing Services ...... 86 Table 50: Financial Performance 2016/17 – Housing Services ...... 87 Table 51: Capital Expenditure 2016/17 – Housing Services ...... 87 Table 52: Free Basic Services to low-income households ...... 88 Table 53: Financial Performance 2016/17 – Cost to Municipality of Free Basic Services delivered ..... 89 Table 54: Free Basic Service Policy Objectives taken from IDP ...... 89 Table 55: Gravel Road Infrastructure ...... 91 Table 56: Asphalted Road Infrastructure ...... 91 Table 57: Cost of Construction/Maintenance ...... 91 Table 58: Road Service Policy Objectives taken from IDP ...... 91 Table 59: Employees – Road Services ...... 92 Table 60: Financial Performance 2016/17 – Road Services ...... 92 Table 61: Capital Expenditure 2016/17 – Road Services ...... 92 Table 62: Stormwater Infrastructure ...... 94 Table 63: Cost of Construction/Maintenance ...... 94 Table 64: Stormwater Policy Objectives taken from IDP ...... 95 Table 65: Employees – Stormwater Services ...... 95 Table 66: Financial Performance 2016/17 – Stormwater Services ...... 96 Table 67: Capital Expenditure 2016/17 – Stormwater Services ...... 96 Table 68: Valuation Roll ...... 98 Table 69: Applications for Land Use Development ...... 99 Table 70: Planning Policy Objectives taken from IDP ...... 99 Table 71: Employees – Planning Services ...... 100 Table 72: Financial Performance 2016/17 – Planning Services ...... 100 Table 73: Capital Expenditure 2016/17 – Planning Services ...... 100 Table 74: Economic Activity by Sector...... 106 Table 75: Economic Employment by Sector ...... 106 Table 76: Job creation through EPWP Projects ...... 107 Table 77: Local Economic Development Policy Objectives taken from IDP ...... 107 Table 78: Employees – Local Economic Development Services ...... 107 Table 79: Financial Performance 2016/17 – Local Economic Development Services ...... 108

Table 80: Capital Expenditure 2016/17 – Local Economic Development Services ...... 108 Table 81: Community Development Policy Objectives taken from IDP ...... 109 Table 82: Service Statistics for Libraries ...... 111 Table 83: Libraries, Community Facilities, and other Policy Objectives taken from IDP ...... 111 Table 84: Employees – Libraries ...... 111 Table 85: Financial Performance 2016/17 – Libraries, Community Facilities and Other ...... 112 Table 86: Capital Expenditure 2016/17 – Libraries, Community Facilities and Other ...... 112 Table 87: Cemeteries and Crematoria Policy Objectives taken from IDP ...... 113 Table 88: Employees – Cemeteries and Crematoria ...... 113 Table 89: Financial Performance 2016/17: Cemeteries and Crematoria ...... 114 Table 90: Capital Expenditure 2015/2016 – Cemeteries and Crematoria ...... 114 Table 91: Child Care, Aged Care, and Social Programmes Policy Objectives taken from IDP ...... 115 Table 92: Employees – Child Care, Aged Care, Social Programmes ...... 115 Table 93: Financial Performance 2016/17 – Child Care, Aged Care, Social Programmes...... 116 Table 94: Capital Expenditure 2016/17 – Child Care, Aged Care, Social Programmes ...... 116 Table 95: Skills Training for youth ...... 116 Table 96: Strategic Objectives: Social and Community Development ...... 117 Table 97: Pollution Control Policy Objectives taken from IDP ...... 119 Table 98: Employees - Environmental Management ...... 121 Table 99: Biodiversity, Landscape and Other Policy Objectives taken from IDP ...... 121 Table 100: Traffic, Licensing and Law Enforcement Service Data...... 122 Table 101: Law Enforcement Objectives taken from IDP ...... 123 Table 102: Employees – Law Enforcement ...... 123 Table 103: Financial Performance 2016/2017 – Law Enforcement ...... 123 Table 104: Capital Expenditure 2016/17 – Law Enforcement ...... 124 Table 105: Fire-Fighter Training ...... 125 Table 106: Fire Safety – Activities ...... 126 Table 107: Fire Service Data ...... 126 Table 108: Fire Service Policy Objectives taken from IDP ...... 126 Table 109: Employees – Fire Service ...... 127 Table 110: Financial Performance 2016/17 – Fire Service ...... 127 Table 111: Capital Expenditure 2016/17 – Fire Service ...... 127 Table 112: The different sports codes’ utilisation of sports facilities ...... 128 Table 113: Sport and Recreation Policy Objectives taken from IDP ...... 128 Table 114: Employees – Sports and Recreation ...... 129 Table 115: Financial Performance 2016/17 – Sports and Recreation ...... 129 Table 116: Capital Expenditure 2016/17 – Sport and Recreation ...... 129 Table 117: Service Statistics for the Executive and Council ...... 131 Table 118: The Executive and Council Policy Objectives taken from IDP ...... 132 Table 119: Employees – The Executive and Council ...... 132 Table 120: Financial Performance 2016/17 – The Executive and Council ...... 132 Table 121: Capital Expenditure 2016/17 – The Executive and Council ...... 133 Table 122: Debt Recovery ...... 134 Table 123: Financial Service Policy Objectives taken from IDP ...... 134 Table 124: Employees – Financial Services ...... 134

Table 125: Financial Performance 2016/17 – Financial Services ...... 135 Table 126: Capital Expenditure 2016/17 – Financial Services...... 135 Table 127: Service Statistics for Human Resources Services ...... 136 Table 128: Human Resource Services Policy Objectives taken from IDP ...... 136 Table 129: Employees – Human Resource Services...... 137 Table 130: Financial Performance 2016/17 – Human Resource Services ...... 137 Table 131: Expenditure Capital 2016/17 – Human Resource Services ...... 137 Table 132: Service Statistics for ICT ...... 140 Table 133: ICT Services Policy Objectives taken from IDP ...... 140 Table 134: Employees – ICT Services ...... 141 Table 135: Financial Performance 2016/17 – ICT Services ...... 141 Table 136: Capital Expenditure 2016/17 – ICT Services ...... 141 Table 137: Properties sold ...... 142 Table 138: Properties leased ...... 143 Table 139: Community Hall Usage ...... 143 Table 140: Capital and Maintenance Projects ...... 144 Table 141: Property Policy Objectives taken from IDP ...... 144 Table 142: Employees – Property ...... 144 Table 143: Employees – Legal Services ...... 145 Table 144: Employees: Risk Management ...... 145 Table 145: Employees: Procurement Services ...... 146 Table 146: Financial Performance 2016/17 – Property, Legal, Risk Management and Procurement Services ...... 146 Table 147: Capital Expenditure 2016/17 – Property ...... 146 Table 148: Employment Equity Targets / Actuals by Race Classification...... 149 Table 149: Employment Equity Targets / Actuals by Gender Classification ...... 149 Table 150: Number employees by Race and Gender within the Occupational Levels ...... 150 Table 151: Total number of employees ...... 150 Table 152: Vacancy Rate 2016/17 ...... 151 Table 153: Turnover Rate ...... 151 Table 154: HR Policies and Plans ...... 152 Table 155: Number and cost of injuries on duty ...... 152 Table 156: Number of days of sick leave (excluding injuries on duty) ...... 153 Table 157: Number and period of suspension...... 154 Table 158: Performance Rewards by Gender ...... 154 Table 159: Internal bursary fund ...... 156 Table 160: Skills Matrix ...... 156 Table 161: Financial Competency Development – Progress Report...... 156 Table 162: Skills Development Expenditure ...... 157 Table 163: Additional Skills Development Expenditure ...... 157 Table 164: Human Capital and Skills Development Policy Objectives taken from IDP ...... 158 Table 165: Employees appointed to posts not approved ...... 159 Table 166: Financial Summary ...... 162 Table 167: Financial Performance of Operational Services ...... 163 Table 168: Grant Performance ...... 163

Table 169: Grants received from sources other than Division of Revenue Act (DORA) ...... 164 Table 170: Treatment of the largest assets acquired 2016/2017 ...... 167 Table 171: Repairs and Maintenance Expenditure 2016/17 ...... 167 Table 172: Capital Expenditure – Funding Sources – 2016/17 ...... 173 Table 173: Capital Expenditure of five largest projects ...... 175 Table 174: Service Backlogs as at 30 June 2016 ...... 176 Table 175: MIG Expenditure 2016/17 on Service Backlogs ...... 176 Table 176: Cash Flow Outcomes ...... 178 Table 177: Actual Borrowings ...... 179 Table 178: Municipal Investments ...... 179 Table 179: GRAP Compliance List ...... 182 Table 180: Auditor-General Report on Financial Performance 2015/16 ...... 185 Table 181: Auditor-General Report on Service Delivery 2015/16 ...... 185 Table 182: Auditor-General Report on Financial Performance 2016/17 ...... 185 Table 183: Auditor-General Report on Service Delivery 2016/17 ...... 185 Table 184: Councillors, Committees allocated and Council attendance ...... 190 Table 185: Committees (other than Mayoral Committee) and purposes of committees ...... 191 Table 186: Second- and Third-tier Structure ...... 192 Table 187: Municipal Functions ...... 193 Table 188: Functionality of Ward Committees ...... 202 Table 189: Ward – Capital Projects ...... 203 Table 190: Basic Service Provision ...... 203 Table 191: Top four Service Delivery Priorities ...... 203 Table 192: Municipal Audit Committee Recommendations ...... 206 Table 193: Long-term Contracts ...... 207 Table 194: Public-Private Partnerships entered into 2016/17 ...... 207 Table 195: Disclosure of Financial Interests ...... 214 Table 196: Revenue Performance by GFS Vote ...... 215 Table 197: Revenue Performance by Source ...... 216 Table 198: Conditional Grants excluding MIG ...... 217 Table 199: Capital Expenditure – New Assets Programme ...... 219 Table 200: Capital Expenditure – Upgrade/Renewal Programme ...... 221 Table 201: Capital Programme by Main Project 2016/17 ...... 223 Table 202: Capital Programme by Main Project by Ward 2016/17 ...... 225 Table 203: Service Backlogs – Schools and Clinics ...... 225 Table 204: Service backlogs experienced by the community where another sphere of government is the service provider ...... 227 Table 205: Declaration of loans and grants made by the Municipality 2016/17 ...... 231 Table 206: MFMA S71 returns not made during 2016/17 according to reporting requirements ...... 232 Table 207: Presidential outcome for Local Government ...... 232

GLOSSARY Definitions Accessibility Explore whether the intended beneficiaries are able to access services or indicators outputs. Documents used by executive authorities to give “full and regular” reports on Accountability the matters under their control to parliament and provincial legislatures as documents prescribed by the Constitution of the Republic of South Africa, 1996 (Act 108 of 1996). This includes plans, budgets, in-year and annual reports. The processes or actions that use a range of inputs to produce the desired Activities outputs and ultimately outcomes. In essence, activities describe "what we do". Adequacy The quantity of input or output relative to the need or demand. indicators A report to be prepared and submitted annually based on the regulations set out in Section 121 of the Local Government: Municipal Finance Management Annual Report Act, 2003 (Act 56 of 2003). Such a report must include the annual financial statements as submitted to the Auditor-General. The annual financial statements of a municipality as audited by the Auditor- Approved Budget General and approved by Council or a provincial or national executive. Current level of performance that a municipality aims to improve when setting Baseline performance targets. The baseline relates to the level of performance recorded in a year prior to the planning period. A municipal service that is necessary to ensure an acceptable and reasonable Basic municipal quality of life to citizens within that particular area. If not provided, it may service endanger the public health and safety or the environment. The financial year for which an annual budget is to be approved – means a year Budget year ending on 30 June. Cost indicators The overall cost or expenditure of producing a specified quantity of outputs. Distribution The distribution of capacity to deliver services. indicators Includes at least a statement of financial position, statement of financial Financial performance, cash-flow statement, notes to these statements and any other Statements statements that may be prescribed. General Key After consultation with MECs for local government, the Minister may prescribe performance general key performance indicators that are appropriate and applicable to local indicators government generally. The results of achieving specific outcomes, such as reducing poverty and Impact creating jobs. All the resources that contribute to the production and delivery of outputs. Inputs Inputs are "what we use to do the work". They include finances, personnel, equipment and buildings. Integrated Development Sets out municipal goals and development plans. Plan (IDP)  Service delivery and infrastructure; National Key  Economic development; Performance  Municipal transformation and institutional development; Areas  Financial viability and management; and  Good governance and community participation. The medium-term results for specific beneficiaries that are the consequence of Outcomes achieving specific outputs. Outcomes should relate clearly to an institution's

Definitions strategic goals and objectives set out in its plans. Outcomes are "what we wish to achieve". The final products, or goods and services produced for delivery. Outputs may be defined as "what we produce or deliver". An output is a concrete Outputs achievement (i.e. a product such as a passport, an action such as a presentation or immunisation, or a service such as processing an application) that contributes to the achievement of a key result area. Indicators should be specified to measure performance in relation to input, Performance activities, outputs, outcomes and impacts. An indicator is a type of information Indicator used to gauge the extent to which an output has been achieved (policy developed, presentation delivered, service rendered). Performance Generic term for non-financial information about municipal services and Information activities. Can also be used interchangeably with performance measure. The minimum acceptable level of performance or the level of performance that is generally accepted. Standards are informed by legislative requirements and service level agreements. Performance standards are mutually agreed criteria Performance to describe how well work must be done in terms of quantity and/or quality Standards and timeliness, to clarify the outputs and related activities of a job by describing what the required result should be. In this employee performance management and development system (EPMDS), performance standards are divided into indicators and the time factor. The level of performance that municipalities and its employees strive to Performance achieve. Performance targets relate to current baselines and express a specific Targets level of performance that a municipality aims to achieve within a given time period. Service Delivery Detailed plan approved by the mayor for implementing the municipality’s and Budget delivery of services; including projections of the revenue collected and Implementation operational and capital expenditure by vote for each month. Service delivery Plan targets and performance indicators must also be included. One of the main segments into which a budget of a municipality is divided for appropriation of money for the different departments or functional areas of the municipality. The vote specifies the total amount that is appropriated for the purpose of a specific department or functional area. Section 1 of the MFMA defines a “vote” as: Vote a) One of the main segments into which a budget of a municipality is divided for the appropriation of money for the different departments or functional areas of the municipality; and b) Which specifies the total amount that is appropriated for the purposes of the department or functional area concerned.

Acronyms ACDP African Christian Democratic Party AIDS Acquired Immune Deficiency Syndrome ANC African National Congress ASB Accounting Standards Board Central Business Dist CBD rict CFO Chief Financial Officer

Acronyms CM City Manager CPIP Capital Projects Implementation Plan DA Democratic Alliance DEA Department of Environmental Affairs DM Drakenstein Municipality DORA Division of Revenue Act ECD Early Childhood Development EFF Economic Freedom Fighters EIA Environmental Impact Assessment EMT Executive Management Team EPWP Expanded Public Works Programme FARMCO Fraud-and-Risk Management Committee FD Federation of Democrats FEIR Final Environment Impact Report GIS Geographic Information System GRAP Generally Recognised Accounting Practice GV General Valuation HIV Human Immunodeficiency Virus HR Human Resources ICOSA Independent Civic Organisation of South Africa ICT Information and Communication Technology IDP Integrated Development Plan IEM Integrated Environmental Management IMFO Institute of Municipal Finance Officers INEP Integrated National Electrification Funding IOD Injury on Duty IRDP Integrated Residential Development Program ISAMAO Institute of Municipal Accounting Officers IWMP Integrated Waste Management Plan KFA Key Focus Area KPA Key Performance Area KPI Key Performance Indicator LED Local Economic Development LSDF Local Spatial Development Framework MFMA Municipal Finance Management Act MIG Municipal Infrastructure Grant MMCs Members of the Mayoral Committee MPAC Municipal Public Accounts Committee MSA Municipal Systems Act mSCOA Municipal Standard of Accounts NGO Non-Governmental Organisation NPO Non-Profit Oganisation NQF National Qualification Framework NQF National Qualification Framework PDM Peoples Democratic Movement

Acronyms PMS Performance Management System PMS Pavement Management System PPP Public Private Partnership RBIG Regional Bulk Services Infrastructure Grant SAHRA South African Heritage Resources Agency SALGA South African Local Government Association SAN Storage SAPS South African Police Service SCADA Supervisory Control and Data Acquisition SCM Supply Chain Management SDBIP Service Delivery and Budget Implementation Plan SDF Spatial Development Framework SDLC Systems Development Life-Cycle SEDA Small Enterprise Development Agency SMT Strategic Management Team SO Strategic Objective SOP Standard Operating Procedure SPCA Society for the Prevention of Cruelty to Animals STATSSA Statistics South Africa SV Supplementary Valuation TASK Tuned Assessment of Skills and Knowledge TMP Transportation Master Plan UIF Unemployment Insurance Fund UISSP Upgrade of Informal Settlement Support Programme VF+ Vryheidsfront Plus VPUU Violence through Prevention Urban Upgrading Programme WTE Waste-to-Energy WTW Wate r Treatment Works WWTW Waste Water Treatment Works

Chapter 1: Executive Mayor’s Foreword and Executive Summary

Chapter 2: Governance

Chapter 3: Service Delivery Performance (Performance Report)

Chapter 4: Organisational Development Performance

Chapter 5: Financial Performance

Chapter 6: Auditor-General Audit Findings

Appendices

CHAPTER 1: EXECUTIVE MAYOR’S FOREWORD AND EXECUTIVE SUMMARY  COMPONENT A: EXECUTIVE MAYOR’S FOREWORD  COMPONENT B: EXECUTIVE SUMMARY

COMPONENT A: EXECUTIVE MAYOR’S FOREWORD

In 2017 Council adopted its Vision 2032 strategy in recognition of Drakenstein Municipality’s secondary city status and the need to meet the needs of our rapidly changing and growing city. The Vision, which encapsulates our drive for excellence, is aligned to the Provincial Growth and Development Strategy and the National Development Plan and seeks to create an enabling environment for growth; development; employment and job creation; enhancing the quality of life of our residents; maintaining good corporate governance; and sound financial management.

Good governance entails addressing the needs of the public through consultation and communication; and being accountable to the citizens of Drakenstein as required by the Municipal Systems Act, 2000 (Act 32 of 2000). Council undertook a number of processes to achieve this goal, including establishing new ward committees; issuing monthly newsletters and press releases; holding consultative meetings with a wide range of stakeholders; and rebuilding our municipal website. Accountability is enforced through performance contracts signed by the Members of the Mayoral Committee (MMCs) and Senior Management and is monitored by the Executive Mayor and Council on a monthly basis.

The 2015/16 report from Statistics South Africa (STATSSA) indicates that the population of Drakenstein has reached 280,195, making up 71,686 households. Drakenstein’s unemployment is estimated at 18.3% of the economically active population. This growth in population is accompanied by various challenges, in particular the ongoing demand for state- provided accommodation. The Municipality has a waiting list of 40,977 persons who seek housing assistance. The Municipality has responded by planning and rolling out a number of projects, including the Vlakkeland project (some 2,550 mixed typology and affordability opportunities) and the Erf 16161 Development (2,078 GAP and social rental opportunities).

In order to develop a vibrant and resilient economy a number of projects have been launched to promote the industrial, financial and commercial sectors. Given the need to focus and maximise our resources five catalytic zones were identified throughout Drakenstein, namely the N1 Corridor, South City Corridor, Paarl East / West Integration Corridor, North City Corridor and the Hinterland catalytic zones, wherein development and resources will be concentrated over the next 15 years.

The Annual Report 2016/17 provides detail on various bulk infrastructure projects being undertaken to facilitate the envisioned accelerated growth. These projects are only possible through strategic partnerships with other spheres of government, the private sector and the community of Drakenstein as we cannot meet the challenges that we face on our own.

I remain grateful to Council, the Deputy Executive Mayor, the Mayoral Committee and the City Manager, all of whom continue to guide our staff, resources and operations to make Drakenstein a City of Excellence.

CLLR CONRAD POOLE EXECUTIVE MAYOR

COMPONENT B: EXECUTIVE SUMMARY

1.1 CITY MANAGER’S OVERVIEW

The Drakenstein Municipality is a Category B municipality with powers and functions assigned in terms of Sections 155 and 156 of the Constitution of the Republic of South Africa, 1996 (local government matters referred to in Schedules 4 and 5). These powers and functions are exercised subject to Chapter 5 of the Municipal Structures Act, 117 of 1998 and Chapter 3 of the Local Government Municipal Systems Act, 32 of 2000. The municipality covers an area of 1,539 km² and consists of 33 wards. It comprises of five towns of which two, Paarl and Wellington, are the primary urban nodes.

We acknowledge the role of provincial and national government and regularly engage on platforms to share information and best practices. These platforms include but are not limited to SALGA, ISAMAO, IMFO, Premiers Coordinating Forum and Municipal Managers Forum.

A new Council was elected in August 2016 and a new City Manager was appointed as from 1 March 2017. Two new Executive Directors respectively for Corporate Services and Engineering Services were also appointed from 1 May 2017.

This Annual Report and fourth consecutive clean audit bears testament to what can be accomplished in local government through a focussed approach on service delivery. In presenting the 2016/17 Annual Report we affirm that Drakenstein Municipality has made massive strides towards its vision of “a city of excellence”, which is guided by values of transparency, excellence, responsiveness, accountability, accessibility and integrity.

The vision is supported by the following strategic objectives:

 To promote proper governance and public participation;  To ensure the financial sustainability of the Municipality in order to fulfil the statutory requirements;  To provide an effective and efficient workforce by aligning our institutional arrangements to our overall strategy in order to deliver quality services;  To ensure efficient infrastructure and energy supply that will contribute to the improvements of quality of life for all citizens within Drakenstein as well as to improve our public relations thereby pledging that our customers are serviced with dignity and care;  To facilitate sustainable economic environment through the development of related initiatives including job creation and skills development;

 To contribute to the health and safety of communities in Drakenstein through the proactive identification, prevention, mitigation and management of health including environmental health, fire and disaster risks; and  To assist and facilitate with the development and empowerment of the poor and the most vulnerable. These include the elderly, youth and disabled.

The various key service delivery improvements achieved during the year under review is a result of good planning and execution. Numerous important projects were completed which inter alia covered bulk sewerage, water reticulation, roads and electricity distribution. These are providing thousands of Drakenstein residents with improved basic services, setting the tone for future economic growth and development.

The Municipality’s strategic planning was also supported by risk management. The following top five risks were identified:

 Failure or inability to maintain and manage assets;  Failure to manage and mitigate the impact of adverse environmental, social, economic and other local, national and global conditions;  Inability to meet the human settlement demands;  Inability to manage illegal actions; and  Inadequate human resource management.

The overall financial performance of the Municipality in 2016/2017 confirms sound financial management, with the revenue increasing year on year in line with the annual target. Increased capital infrastructure investment funded through borrowing was necessary to unlock economic growth and cater for future demand.

The Capital Budget spending for the 2016/17 financial year yielded a result of 99.7% in terms of the Final Adjustments Budget. The Municipality’s actual operating revenue and expenditure yielded results of 101.6% and 97.1% respectively, when compared to the Final Adjustments Budget. The 2016/17 financial year realised an operating surplus of R80.3 million, as opposed to the budgeted deficit of R20.2 million of the Final Adjustments Budget. A positive variance of R100.5 million therefore materialised.

Throughout the financial year we strived to maintain a strong payment ratio by consistent and vigorous actions, including the effective implementation of the Debtors Policy. This is evident in the ability of the Municipality to fund its operations and service its debts. However, the challenges accompanied by the provision of affordable quality services in an efficient and effective manner to our residents remain.

Overall, Drakenstein Municipality remains focussed on fulfilling our vision and excelling as the largest local municipality in the Western Cape. Our greatest encouragement is the continued support and commitment of our residents and business community on all service delivery fronts.

DR JOHAN LEIBBRANDT CITY MANAGER

1.2 MUNICIPAL FUNCTIONS, POPULATION AND ENVIRONMENTAL OVERVIEW

INTRODUCTION TO BACKGROUND DATA

Drakenstein Municipality is the second largest municipality in Western Cape, 18th top municipality in South Africa and 10th Secondary City in terms of the budget size. The Municipality is characterised by scenic landscape, precious natural and cultural heritage, quality educational institutions and sporting facilities, thriving agricultural economy and unrivalled access to the regional access and logistics networks.

Latest results from Statistics South Africa’s Community Survey 2016, Quantec Research 2017 and internal department data are among the key sources of data used in this report to describe social conditions of communities.

Population Details 2014/2015 2015/2016 2016/2017 Age Male Female Total Male Female Total Male Female Total Age: 0-4 12,429 12,590 25,019 12,658 12,401 25,059 12,164 12,955 25,119 Age: 5-9 11,057 11,231 22,288 10,272 10,191 20,463 12,474 11,955 24,429 Age: 10-14 10,250 10,417 20,667 10,132 10,045 20,117 12,553 11,887 24,440 Age: 15-19 10,650 10,615 21,265 12,071 12,039 24,110 10,713 11,909 22,622 Age: 20-29 22,562 22,318 44,880 28,012 25,228 53,240 27,127 24,885 52,012 Age: 30-39 18,661 19,169 37,830 18,312 18,342 36,654 20,351 20,864 41,215 Age: 40-49 17,883 18,471 36,354 17,676 19,073 36,749 18,608 19,020 37,628 Age: 50-59 11,979 13,216 25,195 12,396 13,939 26,335 14,328 15,496 29,824 Age: 60-69 6,203 7,619 13,822 6,227 7,737 13,964 7,295 8,181 15,476 Age: 70+ 3,738 5,814 9,552 2,833 4,340 7,173 2,810 4,620 7,430 Totals 125,412 131,460 256,872 130,589 133,335 263,924 138,423 141,772 280,195 Table 1: Population Details

Households 80000

60000 Number of households in 40000 Municipal Area Number of indigent households in 20000 Municipal Area

NumberofHouseholds 0 2014/2015 2015/2016 2016/2017

Graph 1: Households

Socio-Economic Status Proportion of Population in Illiterate people Unemployment HIV/AIDS Year households with low-skilled older than 14 Rate prevalence no income employment years 2014/15 19.8% 11.5% 31.4% 12.4% 24.5% 2015/16 18.1% 11.8% 34.1% 12.9% 24.3% 2016/17 18.3% 12.8% 34.5% 13.4% 24.5% Table 2: Socio-economic Status

Socio-Economic Status 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Proportion of households HIV/AIDS prevalence Illiterate people older with no income than 14 years

2014/15 2015/16 2016/17

Graph 2: Socio-Economic Status

Overview of neighbourhoods in Drakenstein Municipality Settlement Type Households Population Towns Paarl, Mbekweni and Wellington 50,588 207,451 Saron 2,025 8,293 Gouda 778 3,231 Hermon 175 755 Bainskloof Village 6 24 Sub-total 53,573 219,755 Rural Settlements Rural / farming areas 9,275 44,833 Sub-total 92,75 44,833 Informal Settlements There are currently 28 informal settlements. 3,728 14,912 Sub-total 3,728 14,912 Total *66,576 *279,500 Table 3: Overview of neighbourhoods in Drakenstein Municipality Note: Household and population figures differ from other reported information in this report as a result of the different source documents used to compile reports. This will be refined as the quality of data improves.

Natural Resources Major Natural Resources Relevance to Community Important irrigation, recreation and tourism feature. Plays a vital role in Berg River and tributaries the export of local goods Paarl Mountain Reserve Significant tourist and cultural asset Arboretum Scientific research and recreation Water provision, recreation, contribution towards agriculture as well as Several mountain ranges significant tourist features Major employer of low-skilled labour, export and local markets are Agriculture serviced. Contributes towards local economy Table 4: Natural Resources

COMMENT ON BACKGROUND DATA At the time of Census 2011, Drakenstein Municipality population comprised of 251,262 people and was made up of 59,774 household units. Official data from Statistics South Africa (2016 Community Survey) has been released and indicates that the population has increased to 280,195 with 71,686 households. There is a notable increase of 11.5 % in the population and 19.9% in the number of households between the Census 2011 and the Community Survey 2016. The majority of the population belong to the age group 20-29 with 52,002 individuals. The age group can be linked to the unemployment rate of 18.3%, as it reflects new entrants in the labour market.

The Municipality has experienced an increase in the number of indigent households from 15,095 in 2015 to 18,373 in 2017. The increases in indigent households can be attributed to an increasing population and the number of people who migrate to our area seeking better employment.

The Municipality has again continued strongly with its partnerships with external bodies such as the climate change partnership with Neumarkt in Germany and the Violence Prevention through Urban Upgrading Programme (VPUU), which focuses on empowering citizens to become active as agents of change in their own communities. Both of these initiatives aim to bring together community and authorities in an attempt to develop a force for change.

SAFETY AND SECURITY

Safety and Security Statistics Year Crime 2014 2015 2016 Murder 82 96 81 Sexual Offences 418 391 339 Drug-related crime 3,028 3,281 3,265 Burglary residential premises 1,920 2,125 1,913 Driving under the influence of alcohol or drugs 258 234 195 Table 5: Safety and Security Source: Quantec Research, 2017

The table above indicates reported contact, property related and drug related crimes as well as driving under the influence of alcohol or drugs incidents. Statistically speaking, contact and property related crimes have declined between 2015 and 2016. The decline demonstrates improved social interventions that the municipality undertook to reduce crime, increase safety, security, and improve the living and social conditions of communities.

HEALTH

HIV/AIDS

Registered patients receiving ART Number of new ART patients HIV transmission rate 2014 2015 2016 2014 2015 2016 2014 2015 2016 5,902 6,578 7,815 1,399 1,515 1,428 1.1% 0.9% 2.3% Table 6: HIV/AIDS Source:Mero, 2017

Data from Western Cape Department of Health and reported in MERO 2017 indicates a steady increase in the number of registered patients receiving antiretroviral treatment (ART) between 2014 and 2016. The number of new ART patients decreased. Despite the progress made to increase access to ART medication, the HIV transmission rate between mother and child almost more than doubled from 0.9% in 2015 to 2.3% in 2016.

Tuberculosis

Graph 3: Tuberculosis (TB) Source: Mero, 2017

The number of tuberculosis (TB) patients increased from 2,020 patients in 2014 to 2,169 in 2015 which equates to a 7.4% increase. This number slightly decreased to 2,125 in 2016.

EDUCATION

Grade 12 dropout rate The dropout rate of students that enrolled in 2014 for Grade 10 was 26.0% by the time they reached Grade 12 in 2016. The dropout is influenced by a wide array of economic factors including unemployment, poverty, indigent households and teenage pregnancies.

Education attainment Matric pass rates increased from 83.8% in 2014 to 86.7% in 2015, but remained unchanged in 2016. The increase in the pass rate improves access to higher education opportunities that will in time satisfy the increased demand for semi and highly skilled labour.

1.3 SERVICE DELIVERY OVERVIEW

The Directorate: Infrastructure Services is responsible for basic service delivery, i.e. water, sewerage, streets, stormwater, traffic engineering, waste services and electricity.

All formal and informal areas within the urban area have access to all basic services except electricity. Electricity was previously available to formally reticulated dwellings only. All formal dwellings have been electrified. Good progress has been made with the installation of electricity connections to informal dwellings during the 2016/17 financial year, which was funded with Integrated National Electrification Funding (INEP). Informal and illegal electricity connections remain a challenge. Basic services are provided to farms in the rural area through a subsidy scheme for farm workers. Basic services in the rural areas are addressed by Eskom as they mostly reside in the Eskom supply areas.

A number of Co-Generation PV installation applications were processed by the Electro- Technical Engineering Department for approval, as required for safety reasons. During the financial year applications for an additional 1 MW of solar PV plants had been received. In addition, special co-generation tariffs were developed to facilitate consumers who installed PV plants.

A Time-of-Use project was initiated during the financial year. Smart meters were introduced during the 2016/17 financial year on a test and research basis prior to introducing a Time-of- Use tariff for domestic consumers.

Basic services are provided to all new developments and all the services are maintained in terms of sound asset management principles. Council has progressed well with the Waste-to-Energy (WTE) project, initiated in 2007. The MSA Section 78(3) and MFMA Section 120(6) processes have been completed and a report in this regard was tabled in Council which led to an in principle decision by Council to proceed

with the PPP process whereby a private partner may construct and manage the WTE plant. The Environmental Impact Assessment (EIA) process is nearing closure to confirm if the project, which will be operated through a Public Private Partnership (PPP), will proceed. The EIA included ten specialist studies such as a traffic assessment, botanical assessment, freshwater assessment, geohydrological assessment, noise assessment, visual assessment, material hazardous installation assessment, air quality assessment, human and animal health risk assessment and a socio economic assessment as well as an engineering report that were taken through a public participation process. The Final Environmental Impact Report (FEIR) on the EIA public participation process will after another public participation process be submitted to the National Department of Environmental Affairs (DEA) for consideration. Once DEA has approved or disapproved the FEIR, Council will then be able to take the final decision to proceed or not proceed with the PPP project.

Major civil and mechanical upgrading has commenced at the Wellington, Saron and Gouda wastewater treatment facilities in order to increase the capacity of the treatment facilities and replace dilapidated infrastructure in order to ensure good, compliant and high standard of effluent to be discharged into the watercourses.

Major upgrading of the bulk sewerage system for Paarl is in progress. The bulk sewer pipeline from the Paarl Wastewater Treatment Plant to Arboretum Road has been completed. Major achievements for the past financial year were the construction and completion of the second 11 Mℓ reservoir at Newton, Wellington. The construction of the 5 Mℓ reservoir at Welvanpas, Wellington was completed; the first of two 8 Mℓ Courtrai reservoirs and replacement of the existing bulk water pipe at Courtrai, Paarl are in progress and will be completed in 2018. The construction of the new 10 Mℓ/day Welvanpas Water Treatment Works with a total value of R 62 million is in progress and will be completed by end 2018. The third phase of a possible seven phases of the Strawberry King pipeline with a total value of R 120 million is in progress.

Construction of the upgrading of Berg River Boulevard between Lady Grey Street and Optenhorst Street has commenced with a contract value of R 102.3 million. Completion of this project is estimated to be mid July 2018.

All persons registered as indigent in terms of Council’s policy received free basic services, namely 10 kl of water, 100 kWh of electricity limited to a 20 amp circuit breaker as well as a subsidised refuse removal and sanitation services.

The Municipality has approved its new Spatial Development Framework in 2014. For the year under review the SDF Annual amendments were tabled with the IDP ensuring spatial integration. The SDF sets out broad principles to give direction to future developments, as

well as where such developments can take place within the demarcated urban edges of all towns and in the rural areas.

The Municipality is compiling an integrated zoning scheme regulations applicable to the total area of Drakenstein which will be completed by the end of the 2017/18 financial year. The Zoning Scheme will be used in evaluating development applications and, together with sufficient bulk infrastructure, create opportunities for economic development to take place in order to broaden the development footprint.

Provincial and local assessments indicate that Drakenstein is on a growth path. A good indicator of investment confidence is the number and value of building plans submitted. For the 2015/16 financial year the total value of plans was R 1.9 billion. This has increased to R 2.2 billion for 2016/17. The population figures remain static, but concern is the high unemployment rate. Significant progress has been made in fast tracking development proposals and applications, as well as building plan submissions. This is due to a number of factors including the appointment of new staff, an innovative new electronic building plan submission system as well as the establishment of the Development and Investment Desk in the office of the City Manager which co-ordinates development proposals.

COMMENT ON ACCESS TO BASIC SERVICES

All formal households have access to basic civil engineering and electricity services.

Informal areas within the urban edge have been provided with a minimum level of basic civil services since 2007. The provision of services to the informal areas is as a result of rural-urban migration and new family formation which make planning difficult.

An assessment is made annually to determine the backlogs to be addressed, based on available funding.

Theft and vandalism disrupt the provision and maintenance of services.

1.4 FINANCIAL HEALTH OVERVIEW

The Municipality has made a concerted effort to ensure that the limited resources of the organisation are utilised in a sustainable and responsible manner. The financial overview of the organisation can be summarised as follows:

Financial Sustainability The Municipality has a significant revenue base that continues to grow substantially when compared with previous years. This revenue base has enabled the organisation to

aggressively increase the external gearing to address its capital infrastructure needs. However, future increases in tariffs would have to be benchmarked against the consumer’s ability to pay. Lower tariff increases coupled with higher inflation and slower economic growth could hamper the Municipality’s infrastructure investment programme.

The liquidity levels of the organisation have been managed in a fair manner, although only a slight decline in the current assets to current liabilities ratio is evident. The liquidity ratio (current assets/current liabilities) of the organisation as at 30 June 2017, was 1.242 to 1 as opposed to the ratios of 1.302 to 1 (2015/16), 1.093 to 1 (2014/15) and 1.065 to 1 (2013/14) for the previous three financial years. Although the industry norm is 1 to 1, it is encouraging that the ratio increased over the last four financial years.

The overall financial operational performance of the organisation can be considered as being finely balanced with very little room for budgetary mistakes.

Key successes and outcomes for 2016/17 The Capital Budget spending for the financial year yielded a result of 99.69% when compared with the Final Adjustments Budget for 2016/17. This can be regarded as a very good performance in terms of all the role-players within the organisation responsible for ensuring that service delivery is of the highest quality in the Municipal Area.

The financial performance of the organisation also yielded excellent results. The actual operating revenue yielded a result of 101.63% when compared with the Final Adjustments Budget for 2016/17. The actual operating expenditure yielded a result of 97.07% of the Final Adjustments Budget for 2016/17. The Statement of Financial Performance (capital grants included) yielded a surplus of R 80.3 million compared with the final adjustment budgeted deficit of R 20.2 million – a positive variance of R 100.5 million.

Financial Overview 2016/17 Positive / Original Adjustment (Negative) Details Budget Budget Actual Variance Income R R R R Grants 182,601,418 177,382,296 158,678,744 -18,703,552 Taxes, Levies and Tariffs 1,641,638,094 1,641,601,935 1,675,578,815 33,976,880 Other 130,201,516 158,135,263 175,157,677 17,022,414 Sub-total 1,954,441,028 1,977,119,494 2,009,415,236 32,295,742 Less: Expenditure 2,047,906,494 2,062,841,034 2,002,500,560 60,340,474 Total (Capital Grants Excluded) -93,465,466 -85,721,540 6,914,676 92,636,216 Plus: Capital Grants 57,546,082 65,479,867 65,440,162 -39,705 Plus: Contributed Assets 0 0 7,993,136 7,993,136 Total (Capital Grants included) -35,919,384 -20,241,673 80,347,974 100,589,647 Table 7: Financial Overview 2016/17

The following additional revenue and expenditure savings influenced the operating revenue and expenditure results for the 2016/17 financial year. Property rates, service charges and other revenue respectively realised R 14.1 million, R 17.2 million and R20.1 million additional revenue due to growth in property development. Substantial savings realised on the expenditure categories employee related costs (R 6.7 million), contracted services (R 15.6 million) and other expenditure (R19.0 million). Due to infrastructure investment still regarded as work-in-progress at year end, savings on depreciation expenditure of R 11.5 million also materialised.

Challenges identified and proposals to address these challenges Consumer debt remains a challenge and a number of initiatives were implemented. However, consumer debt (property rates, service charges, housing and sundry debtors – VAT excluded) increased by R 33.3 million from R 300.9 million as at 30 June 2016 to R 334.2 million as at 30 June 2017. The relationship between the ever-increasing tariffs and outstanding debtors is an indication that consumers are struggling to meet their obligations in terms of payment for services, but also due to punitive tariffs that were introduced because of the scarcity of water due to the prolonged drought experienced in Drakenstein and the Western Cape. The worsening economic climate puts pressure not only on the world economy, but also filters down to households in municipalities globally.

The debtors’ payment period for the 2016/17 financial year (before considering the provision for impairment) was 66.2 days, which is below the targeted number of 70 days and is an indication of the measures that have been put in place to decrease the consumer debt situation of Council and improve its revenue capacity. The number of days for the 2015/16 financial year was 75.5 days compared with the 79 days as at 30 June 2015 – before taking into account the provision for doubtful debt. The Municipality’s debtors’ collection period in days (after impairment) decreased to 37.5 days as at 30 June 2017 compared with the 43.7 days as at 30 June 2016. The Municipality’s debtors’ collection period in days (before impairment) reduced by 9.3 days and the Municipality’s debtors’ collection period in days (after impairment) decreased by 6.2 days during the financial year under review.

The ability of Council to finance the capital programme from internally generated funds remains a big challenge. This challenge has an inverse relationship with the increasing external loan debt of Council, which amounted to 59.2% of the total operating revenue at the end of the 2016/17 financial year. Although Council policy wise has capped gearing ratio percentage at 50%, urgent upgrades in revenue generating infrastructure to enable increased development and therefore an increased revenue base necessitated that we accelerate our capital programme. Investment in bulk infrastructure was needed, such as the upgrading of the bulk sewerage line in Southern Paarl, upgrading of the Wellington WWTW, construction of the Kliprug electricity substation, construction of the Courtrai reservoir and upgrading of Berg River Boulevard, to unlock any further developments in order to attract investors that can broaden the Municipality’s tax base.

In terms of future infrastructure investments the gearing ratio will increase to about 70% before it will reduce to less than 50% in accordance with the Long Term Financial Sustainability Policy by the 2024/25 financial year. Although the Municipality currently do generate operating budgeted cash surpluses, the Municipality envisages to start generating sustainable operating budgeted surpluses from the 2022/23 financial year to ensure that the operating budget generate sufficient cash surpluses for infrastructure investment. This approach will reduce the Municipality’s dependency on external borrowings for capital infrastructure investment.

Several other initiatives are envisaged for the 2017/18 financial year, with the aim of improving Council’s ability to finance future capital requirements. One of these initiatives is the Revenue Enhancement Programme, which will look at closing off any revenue leakages to ensure the collection of revenue that was not collected before in order to increase the revenue base of Council. The continued efficient and effective management of expenditure will also be improved in order to limit the spending on unnecessary items.

COMMENT ON OPERATING RATIOS

The operating ratios as depicted below compare favourably with the current industry norms. The employee cost of 25.2% of total operating expenditure (2016/17) is at the lower level of the 25% to 40% range regarded as the industry norm (depending on the size and type of municipality), which means that the salary bill of the organisation is well within the required norms. It slightly decreased from 25.8% in 2015/16 due to not filling critical vacant positions. This tendency should not re-occur in the 2017/18 financial year since the drive to fill critical vacant positions.

Operating Ratios Details 2015/16 2016/17 Employee Cost as a % of Operating Expenditure 25.8% 25.2% Repairs and Maintenance as a % of Operating Expenditure 11.0% 10.8% Repairs and Maintenance as a % of Carrying Value of PPE 4.3% 4.3% Finance Charges and Depreciation as a % of Operating Expenditure 14.8% 14.9% Finance Charges and Redemption as a % of Operating Expenditure 12.4% 12.2% Table 8: Operating Ratios

The Municipality’ spending on repairs and maintenance to total operating expenditure amounts to 10.8% for the 2016/17 year compared with the 11.0% for 2015/16 year. The ratio of repairs and maintenance to the carrying value of property, plant and equipment was 4.3% for the 2016/17 year and 4.3% for the 2015/16 year which could be viewed as unfavourable if compared with National Treasury’s norm of 7% to 8%. The norm is not reasonable, simply because all municipalities’ asset registers are not compiled on the same monetary basis. If Drakenstein wants to adhere to this norm, the Municipality will have to increase all current property taxes and service charges with a further 12.2%, which in the current economic

climate is not a proposition. A comparison was done between the Drakenstein and the other 18 secondary cities and the 8 metropolitan municipalities and it was found that Drakenstein ranked 4th highest in terms of this ratio after the City of Cape Town, City of Johannesburg and eThekwini.

It needs to be noted that Drakenstein’s infrastructure is very old and currently there is a large investment in the renewal and extension of infrastructure as to maintain current service delivery levels. This can be seen with the increase in capital expenditure over the past three financial years from the R 215.4 million in 2014/15, the R 317.1 million in 2015/16 and the R 544.4 million in 2016/17. This large increase in the investment in new infrastructure has decreased the repairs and maintenance expenditure, as newer assets require less maintenance than those that are past their economic life.

Finance charges and depreciation expenditure represent 14.9% of total operating expenditure for 2016/17 compared with the 14.8% for the 2015/16 year. Finance charges and capital redemption represent 12.2% of total operating expenditure for 2016/17 compared with the 12.4% for 2015/16. This compares unfavourably with National Treasury’s norm of 6% to 8%. However, as stated above, Drakenstein requires urgent upgrades in infrastructure to enable increased development and an increased revenue base.

Total Capital Expenditure R`000 Details 2014/15 2015/16 2016/17 Original Budget 284,821,140 375,837,493 592,474,442 Adjustments Budget 218,191,681 321,065,655 546,072,195 Actual 215,403,678 317,052,334 544,359,708 Table 9: Total Capital Expenditure

Capital Expenditure 2016/17 600,000,000 592,474,442 500,000,000 546,072,195 544,359,708

400,000,000 Original Budget

300,000,000 Adjustments Budget Actual Expenditure 200,000,000

100,000,000

0 Graph 4: Total Capital Expenditure

COMMENT ON CAPITAL EXPENDITURE

Less capital expenditure (91.9%) was incurred during 2016/17 compared with the originally approved Capital Budget. This indicates a project management issue within the organisation. However, red tape pertaining to supply chain management is also making it difficult to spend all budgeted funds before the end of the financial year.

The variations between the Original Budget and the Final Adjustments Budget are mainly due to capital roll-overs from the 2015/16 financial year to the 2016/17 financial year and from the 2016/2017 financial year to the 2017/2018 financial year for contracts awarded and orders issued of which the work was not completed at a specific year-end.

The variation between the Final Adjustments Budget and the actual capital expenditure amounted to R 1.712 million or 0.31% of the Final Adjustments Budget that was not spent. The Municipality thus spent 99.69% of its capital expenditure when compared to the Final Adjustments Budget.

1.5 ORGANISATIONAL DEVELOPMENT OVERVIEW

The organisational structure that was adopted on 13 December 2012 was reviewed post the local government elections in August 2016. The review identified minor macro organisational amendments and departments were requested to identify any additional staff capacity that will contribute to improved service delivery. The reviewed organisational structure will be adopted and implemented during the 2017/18 financial year. Together with the organisational review the filling of critical vacancies, job descriptions and the grading of all posts have been prioritised for urgent intervention and finalisation. The appointment of a new executive team was completed in May 2017 and therefore many organisational interventions and improvements will only be implemented and achieved in the 2017/18 financial year.

The view that information communication technology (ICT) should be governed and managed at all levels within a given organisational structure is supported by internationally accepted good practice and standards. These practices and standards are defined in the King IV, Report on Corporate Governance for South Africa 2016, ISO 38500 Standard for the Corporate Governance of ICT, the Corporate Governance of ICT Policy Framework and other best practice frameworks. Translated into a municipal operating environment, the corporate governance of ICT places the responsibility of strategic leadership on the Council and management within a municipality. This is done to ensure that the leadership and decision- making processes for the use of ICT in service delivery and operational efficiencies of the municipality’s ICT environment remain transparent. This accountability ensures the

alignment of the use of ICT with the municipal service delivery requirements as reflected in the IDP.

Taking all of the above into consideration, the vacant position of ICT Governance / Administration Manager was filled on 1 July 2016.

From a technology prospective, desktop and laptop computers were replaced to get all users on a platform that will be able to support the latest Windows operating system. This is necessary to be able to deploy the latest version of Microsoft Office to comply with requirements from system developers as well as the ability to be compatible with other users. Replacements are being performed budget permitting and the oldest technology first is set as a priority. This is an ongoing project. As new posts are being filled, users are being supplied with equipment including computers and telephones. This is difficult to budget for as no real figures are available in advance. ICT have however managed to assist everyone even on very short notice in some cases.

Our current storage (SAN) installation was nearing its useful life and was replaced by a new Tintri SAN device giving us the capability to store 65Tb of data. This installation and data move was done with no interruption and interference to any user on the network. The first phase of the fiber data communication installation between Paarl and Wellington was put out on tender and awarded. The project is well underway with completion being planned by the end of June 2018. Planning for the next phase is already well advanced. An audit of our Microsoft environment was initiated and the outcome was very positive.

The structure of the Property Services Unit was reviewed in order to address the need for additional capacity in the Unit. This is necessary to ensure that land transactions are well administered and supports the Municipality’s strategic goal to strengthen social and economic development. Land transactions play a key role in support of all other efforts to achieve these constitutional goals.

The Legal Services Section continued to play a supporting role to protect the Municipality against legal action, making use of both internal and external legal support services. Legal action is also taken by the Municipality, where necessary, to enforce municipal legislation and contractual obligations.

1.6 AUDITOR-GENERAL REPORT

For the fourth consecutive year, Drakenstein Municipality received an unqualified audit opinion with no other matters (a so-called “clean” audit opinion) for the 2016/17 financial year. This was achieved with in-house capacity and without the appointment of any consultants. The audit opinions received for the last fourteen financial years clearly indicate

an improvement in leadership and control on the matters that the Auditor-General focuses on during its audits:

1. 2016/17: Unqualified audit opinion with no other matters (“clean” audit); 2. 2015/16: Unqualified audit opinion with no other matters (“clean” audit); 3. 2014/15: Unqualified audit opinion with no other matters (“clean” audit); 4. 2013/14: Unqualified audit opinion with no other matters (“clean” audit); 5. 2012/13: Unqualified audit opinion with other matters; 6. 2011/12: Unqualified audit opinion with other matters; 7. 2010/11: Unqualified audit opinion with other matters; 8. 2009/10: Unqualified audit opinion with other matters; 9. 2008/09: Unqualified audit opinion with other matters; 10. 2007/08: Unqualified audit opinion with other matters; 11. 2006/07: Qualified audit opinion with other matters; 12. 2005/06: Qualified audit opinion with other matters; 13. 2004/05: Qualified audit opinion with other matters; and 14. 2003/04: Unqualified audit opinion with other matters.

The unqualified and qualified audit opinions have to do with the Annual Financial Statements. The other matters deal with leadership and control issues, predetermined objectives and legislative compliance issues.

Further details can be found in the Audit Outcome Improvement Plan attached as Volume III to the Annual Report 2016/17.

1.7 STATUTORY ANNUAL REPORT PROCESS

No. Activity Timeframe Consideration of next financial year’s budget and IDP process plan. Except for the legislative content, the process plan should confirm in-year reporting formats to ensure 1 that reporting and monitoring feed seamlessly into the Annual Report process at the end of the budget/IDP implementation period. Implementation and monitoring of approved budget and IDP commences. (In-year 2 July financial reporting.) 3 Finalise 4th Quarter Performance Report for previous financial year. 4 Submit Draft Annual Performance Report to Internal Audit and Audit Committee. Audit/Performance Committee considers Draft Annual Performance Report of 5 municipality.

Municipality submits Annual Financial Statements and Annual Performance Report 6 August including Draft Annual Report to Auditor-General.

Annual Performance Report as submitted to Auditor-General to be provided as input to 7 the IDP analysis phase.

No. Activity Timeframe Auditor-General assesses Annual Financial Statements and Annual Performance Report 8 data, including Draft Annual Report. September – Municipality receives and addresses the Auditor-General’s Request for Information 9 November and Communication of Findings. Executive Mayor tables Draft Annual Report and audited Annual Financial Statements 10 January and Annual Performance Report to Council complete with the Auditor-General’s Report. 11 Draft Annual Report is made public and representation is invited. Oversight Committee (MPAC) assesses Draft Annual Report and issues an Oversight 12 Report. February 13 Council considers Oversight Report. - 14 Oversight Report is made public. March 15 Oversight Report is submitted to relevant provincial departments. Commencement of draft budget/IDP finalisation for next financial year. Annual Report 16 and Oversight Report to be used as input.

Table 10: Statutory Annual Report Process

Chapter 1: Executive Mayor’s Foreword and Executive Summary

Chapter 2: Governance

Chapter 3: Service Delivery Performance (Performance Report)

Chapter 4: Organisational Development Performance

Chapter 5: Financial Performance

Chapter 6: Auditor-General Audit Findings

Appendices

CHAPTER 2: GOVERNANCE  Component A: Political and Administrative Governance  Component B: Intergovernmental Relations  Component C: Public Accountability and Participation  Component D: Corporate Governance

INTRODUCTION TO GOVERNANCE

In the quest to realise Drakenstein Municipality’s vision of “A city of excellence”, it is imperative that the Municipality is governed in a way that promotes good governance. The Municipality strives to achieve excellence by balancing the needs of all residents and the constitutional and legal framework applicable to local government with the available resources in such a way that service delivery takes place in an efficient, economic and effective manner.

COMPONENT A: POLITICAL AND ADMINISTRATIVE GOVERNANCE

Political and Administrative Governance In compliance with Section 151(3) of the Constitution of the Republic of South Africa, 1996 (Act 108 of 1996); Section 53 of the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000); and the Local Government: Municipal Structures Act, 1998 (Act 117 of 1998), Drakenstein’s Municipal Council governs the local government affairs of the local community on its own initiative. The roles and areas of responsibility of each political structure and each political office-bearer of the Municipality and of the City Manager are defined and adhered to accordingly.

2.1 POLITICAL GOVERNANCE

Council The Council’s primary role is to govern the municipality in a democratic and accountable manner, to perform legislative and executive functions and generally to fulfil its roles and responsibilities as set out in the Constitution of the Republic of South Africa, 1996 (Act 108 of 1996). It focuses on legislation, decision-making, oversight and participatory roles and has delegated executive functions to the Executive Mayor.

Drakenstein Municipal Council consists of 33 ward councillors and 32 proportionally elected councillors. Political parties are represented through elected councillors from the DA (43), ANC (15), EFF (2), ACDP (1), VF+ (1), PDM (1), FD (1) and ICOSA (1).

Executive Mayor The Executive Mayor, Cllr CJ Poole, assisted by the Deputy Executive Mayor and the Executive Mayoral Committee, all members of the DA, heads the political executive arm of the Municipality. The Executive Mayor is at the centre of the system of governance, since executive powers are vested in him to manage the day-to-day affairs. This means that he has an overarching strategic and political responsibility. The key element of the executive model is that executive power is vested in the Executive Mayor, delegated by the Council, as well as

the powers assigned by legislation. Although he is accountable for the strategic direction and performance of the Municipality, the Executive Mayor operates in conjunction with the Deputy Executive Mayor and the Executive Mayoral Committee.

Portfolio Committees Five (5) Section 80 committees are established, namely: Corporate Services; Planning and Economic Development; Infrastructure Services; Financial Services; and Community Services to advise the Executive Mayor on policy matters and any other matter to be considered by the Executive Mayor. They are assigned to focus on specific functional areas of the Municipality and can only make decisions on specific functional issues if delegations have been granted to them. The members are appointed by Council. The chairpersons appointed by the Executive Mayor are full-time Councillors and form part of the Executive Mayoral Committee.

MPAC Section 79 committees are permanent committees appointed to advise the municipal Council. Council established the Municipal Public Accounts Committee (MPAC) to perform an oversight function on behalf of Council over the executive functionaries of the Council. The MPAC inter alia serves as an oversight committee to make recommendations to the Council when it adopts the Oversight Report on the Annual Report in terms of Section 129 of the Local Government: Municipal Finance Management Act, 2003 (Act 56 of 2003) (MFMA).

The MPAC is chaired by the councillor from the ACDP and the other members consists of five DA and two ANC councillors. No members from the political executive arm is a member of the MPAC. The committee met on two occasions during the year under review and mainly dealt with the compilation of the Oversight Report on the 2015/2016 Annual Report as well as considering and making recommendations to Council on the possible recovering or writing-off of irrecoverable, fruitless and wasteful expenditure as disclosed in the Annual Financial Statements.

Audit Committee In compliance with Section 166(2) of the MFMA, Council has an Audit Committee which is an independent body advising the Municipal Council, the political office-bearers, the accounting officer and the management staff of the municipality, on matters relating to:

 Internal control;  Risk management;  Performance management; and  Governance.

The Audit Committee Terms of Reference is reviewed by Council annually to ensure compliance with legislation and governance best practices. The Audit Committee met on five

occasions and detail on their recommendations to Council can be found in Appendix G of the Annual Report.

FARMCO The FARMCO has been established by Council to assist the Accounting Officer (City Manager) to fulfil his fraud and risk management responsibilities in accordance with prescribed legislation and corporate governance principles. This is achieved by reviewing the effectiveness of the Municipality’s fraud and risk management systems, practices and procedures and providing recommendations for improvement.

The committee is regulated by the Fraud and Risk Management Charter which stipulates that the FARMCO shall meet at least four times per annum in terms of a schedule of agreed meeting dates to be determined at the beginning of each financial year. The FARMCO can convene further meetings to discuss urgent matters at the discretion of the FARMCO Chairperson.

In accordance to the Charter, four meetings were held on 8 July 2016, 28 October 2016, 20 January 2017 and 12 May 2017.

Matters for discussion include quarterly oversight of various risk registers, reported unethical incidents and monitoring the risk management implementation plan.

Political Structure Designation Function The Executive Mayor represents the public and is the chief political principal of the municipality. In terms of legislation the Executive Mayor has the following functions: Executive Mayor  Identify the needs of the municipality; Cllr CJ Poole  Review and evaluate those needs in order of priority; (From 1 July 2016  Recommend to the municipal Council strategies, until the local programmes and services to address priority needs government through the Integrated Development Plan and the elections on 3 Operating and Capital Budgets, taking into account any August 2016, and applicable national and provincial development plans; re-elected on and 16 August 2016)  Recommend or determine the best way, including partnership and other approaches, to deliver those strategies, programmes and services to the benefit of the community.

Political Structure Designation Function Deputy Executive Mayor Cllr GC Combrink

(From 1 July 2016 The Deputy Executive Mayor of a municipality exercises the until the local power and performs the duties of the Executive Mayor if government the Executive Mayor is absent or not available or if the elections on office of the Executive Mayor is vacant. 3 August 2016, and re-elected on 16 August 2016).

Speaker Cllr JF Le Roux The Speaker of the municipal Council: (Until local  Presides at meetings of the Council; government  Performs the duties and exercises the powers delegated elections on to the Speaker in terms of Section 59 of the Local 3 August 2016. Government: Municipal Systems Act, 2000 (Act 32 of 2000);  Must ensure that the Council meets at least quarterly;  Must maintain order during meetings;  Must ensure compliance in Council and Council Speaker committees with the Code of Conduct set out in Cllr AC Stowman Schedule 1 of the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000); and (As from  Must ensure that Council meetings are conducted in 16 August 2016 accordance with the rules and orders of the Council.

The function of the Chief Whip is to create synergy and to Chief Whip maintain discipline among Councillors from various Cllr RA political parties. The role of the Chief Whip of Council Koegelenberg covers both the political and administrative domains of (From 1 July Council with the emphasis on the political aspect. Seven 2016 until the political parties are represented in Council and the Chief local government Whip has to ensure that relationships are constructive and elections on 3 focused on key issues aimed at improving the lives of the August 2016, and residents of Drakenstein. The Chief Whip further acts as a re-elected on link between the Speaker, the Executive and the 16 August 2016) Administration. The Chief Whip ensures that there is equitable representation on committees of Council. Table 11: Political Structure

Executive Mayoral Committee The Executive Mayor is supported by a Mayoral Committee. Each member of the Mayoral Committee has a portfolio with specific functions. The Executive Mayor may delegate specific responsibilities to each member of the Mayoral Committee. Any powers and duties delegated to the Executive Mayor by the Municipal Council must be exercised and performed by the Executive Mayor together with the other members of the Mayoral Committee. The following councillors served as portfolio holders until the local government elections on 3 August 2016: Councillor and Portfolio Councillor and Portfolio

GC Combrink Dr MDJ Smith Portfolio: Finance (Executive Deputy Mayor Portfolio: Planning and from 16 May to Economic Development 30 June 2016)

R Smuts L Ntlemeza

Portfolio: Security Services Portfolio: Corporate and Disaster Management Services

Dr ND Adams Dr LM du Toit Portfolio: Social Services and Community Portfolio: Environmental Development Affairs, Open Spaces and Parks

WF Philander EM Kearns

Portfolio: Housing and Portfolio: Public and Human Settlements Governmental Relations

G Rademeyer A Stowman

Portfolio: Infrastructure Portfolio: Sport, Culture Services and Youth Matters

Councillor and Portfolio Councillor and Portfolio

RH van Nieuwenhuyzen

Portfolio: Rural Management

Table 12: Executive Mayoral Committee

Council elected the following councillors as portfolio holders on 16 August 2016:

Executive Mayoral Committee Councillor and Portfolio Councillor and Portfolio

GC Combrink Adv J Miller

Portfolio: Finance Portfolio: Planning, (Executive Deputy Economic Development Mayor) and Tourism

R Smuts LP Mokoena

Portfolio: Portfolio: Public Safety Corporate Service

F Jacobs C Kearns

Portfolio: Portfolio: Environment, Parks Social Services and Open Spaces

L Willemse RH van Niewenhuyzen

Portfolio: Human Portfolio: Communication and Settlement and Property IGR Management

Executive Mayoral Committee Councillor and Portfolio Councillor and Portfolio

MA Andreas JF le Roux

Portfolio: Rural Portfolio: Management Engineering Services

L van Niekerk

Portfolio: Sport, Recreation, Arts and Culture

Table 13: Executive Mayoral Committee after the Local Government Election

Councillors The number of Councillors increased from 61 to 65 after the local government elections on 3 August 2016. Of the 65 Councillors, 33 are Ward Councillors and 32 are Proportional Councillors (PR). The Speaker presides at meetings of Council. A full list of Councillors can be found in Appendix A. Appendix B sets out committee members and the committee purposes.

Political Decision-Taking Section 160(3) of the Constitution of the Republic of South Africa, 1996 (Act 108 of 1996) prescribes the manner in which Council takes decisions. A quorum of all Councillors must be present to take any decision and the majority of the votes cast results in a legal decision. The exception to this rule is that when any of the following issues are determined, it is determined by a decision taken with a supporting vote of a majority of all its members:

(1) The passing of by-laws; (2) The approval of budgets; (3) The imposition of rates and other taxes, levies and duties; and (4) The raising of loans.

2.2 ADMINISTRATIVE GOVERNANCE

The City Manager is the Accounting Officer of the municipality and also the head of the administration. His primary function is to serve as chief custodian of service delivery and the implementation of political priorities.

He is assisted by his Strategic Management Team (SMT), previously known as the Executive Management Team (EMT), which comprises of the Executive Directors of the five departments

established in the new organogram. There is also four divisional managers reporting directly to the City Manager as indicated in the chart below. The SMT meet regularly on Monday mornings to discuss strategic interventions to improve service delivery and new iniatives based on feedback from political leadership, operational departments and the local community.

City Manager

Manager: IDP and Chief Audit Performance Executive Management

Manager: Communication and Chief Risk Officer Marketing

Executive Director: Executive Director: Executive Director: Chief Financial Executive Director: Planning and Corporate Services Engineering Services Officer Community Services Development

Graph 5: Macro Organisational Structure

Top Administrative Structure Position Function

 Provides an independent appraisal of the adequacy and effectiveness of the systems of internal control, risk management and governance processes.  Evaluates and contributes to the improvement of governance management processes.  Manages financial services in order to ensure financial viability, compliance and reporting.  Provides corporate services to the institution to ensure efficient City Manager support of organisational processes. Dr Johan H Leibbrandt  Provides and manages planning, economic development and (Appointed on 1 March 2017) environmental management services. Prior to his appointment several  Renders integrated community services to enhance community Executive Directors: development in general and promotes a clean and safe environment. Mr J Carstens (CFO);  Maximises infrastructure development and delivers a service to all Ms A de Beer; communities of Drakenstein. Ms L Waring; and Mr D Louw acted in this position.

Top Administrative Structure Position Function

 Provides legal and administrative support services to the institution to facilitate proficient administrative practices and procedures. Corporate Services  Renders human resource management and support services to the Annalene de Beer municipality that will sustain the optimum utilisation of the until 30 April 2017. municipality’s human capital.  Provides effective and efficient information and communication technology services.  Provides comprehensive communication and intergovernmental relations services.  Coordinates and provides functional and administrative support to the political office-bearers.  Provides office management services to the Executive Mayor.  Renders property and facilities management services.

Corporate Services Seraj Johaar as from 1 May 2017

 Manages and controls the implementation of budget policies, systems and procedures and financial statement processes to ensure legislative compliance and sound financial management practices.  Implements and maintains revenue and credit control policies and procedures to ensure sound revenue management practices and compliance. Chief Financial Officer  Ensures the recording, authorisation and proper execution of Jacques Carstens expenditure systems, procedures and transactions.

 Manages supply chain management services to ensure proper Mrs. Cindy Lategan acted in this systems, procedures and control for demand, acquisition, logistics, position from January 2016 until assets and disposal management. December 2016 while Mr Carstens acted as the City Manager.

Top Administrative Structure Position Function

 Manages the rendering of spatial and land use planning, surveying, valuations and building control services.  Plans, develops and implements a coherent and Integrated Framework for Local Economic Development and Tourism.  Ensures the implementation of environmental management plans, policies and procedures and ensures compliance in accordance with applicable legislation. Planning and Economic  Renders management and line function administrative support Development services. Ms Lauren Waring

Infrastructure Services

Deon Louw  Manages Civil Engineering Services including (water, sewerage, until 30 April 2017 streets, storm water and traffic engineering).  Manages Electrical Engineering Services.  Manages Solid Waste Services, including waste collection, disposal facilities, waste minimisation, awareness and education, waste diversion, street sweeping, community projects, area cleaning and Waste to Energy.  Manages project and building projects / programmes.

Infrastructure Services D Hattingh as from 1 May 2017.

 Manages the provisioning and maintenance/operation of parks, sport facilities, cemeteries and solid waste management services.  Manages the rendering of protection services to ensure the safety of the community.  Provides for the development of human settlements administration and support services to address the housing needs in the area.  Provides and manages the rendering of community development, library and information services.  Renders management and line function administrative support Community Services services. Gary Boshoff

Table 14: Top Administrative Structure

COMPONENT B: INTERGOVERNMENTAL RELATIONS

Cooperative Governance and Intergovernmental Relations Drakenstein Municipality participates in a range of intergovernmental activities, both formally and informally. Examples of such interaction and cooperation are:-

 The cooperation of all three spheres of government in the delivery of housing for the poor;  The Violence Prevention through Urban Upgrading (VPUU) project is a joint project with provincial government and various other state departments such as the South African Police Services, Community Development, Sport and Arts and Crafts, NGOs and various other role-players. The project aims to improve the environment in community areas to fight crime, poverty and other social evils through urban upgrading;  Events and Imbizo’s organised to bring information and services to the community. The functioning of our Thusong Centres is also an example of bringing joint services to the community;  Joint integrated development planning during which various provincial departments and Cape Winelands District Municipality contribute towards the IDP planning processes;  Various meetings are attended where interaction takes place between the various spheres of government;  Drakenstein Municipality attends the SALGA workgroup meetings where all the municipalities in the Western Cape gather to discuss matters of mutual interest in the various fields for which workgroups have been established;  The City Manager and Executive Mayor respectively take part in the Municipal Managers’ Forum, both provincial and national, as well as the Premier’s Forum where the Premier of the Western Cape meets the mayors of the municipalities in the Western Cape and their municipal managers to discuss various matters of mutual interest; and  The Joint Planning Initiative of which Drakenstein forms part of the pilot project with the Western Cape Provincial Government to deal with youth development and skills training, improving ICT infrastructure roll-out and local economic development.

2.3 INTERGOVERNMENTAL RELATIONS

National Intergovernmental Structures Drakenstein Municipality participates in national and provincial forums where issues are discussed that involve all local municipalities. These forums are of a technical and professional nature. Experiences and best practices are shared and information is gathered; an example of these would be SALGA, ISAMAO and the IMFO.

Drakenstein continued to participate in a Climate Change Partnership with Neumarkt in Germany. The partnership revolves around climate change-related aspects and involves municipal development cooperation, migration and development on a local level and a partnership with developing emerging economies.

Provincial Intergovernmental Structures Drakenstein Municipality participates in the Premier’s Intergovernmental Forum as well as the Provincial Speakers’ Forum. The municipal managers also have a provincial and national forum. In all these forums, issues pertaining to service delivery and matters of common interest are discussed.

Information and best practices are shared and interaction with the Western Cape Government and other municipalities is valuable to ensure better coordination and cooperation.

Key staff members also participate in professional institutes that govern the interests of various fields of work. These structures provide important support and guidance to staff in maintaining and enhancement of professional work standards.

Relationships with Municipal Entities No municipal entities have been established within the Drakenstein Area.

District Intergovernmental Structures As with provincial structures, the Municipality participated in the district forums of mayors, speakers and municipal managers, human resources, planning, finance and various infrastructure forums dealing with service delivery. Engagement, joint projects and information sharing take place on a regular basis.

COMPONENT C: PUBLIC ACCOUNTABILITY AND PARTICIPATION

OVERVIEW OF PUBLIC ACCOUNTABILITY AND PARTICIPATION

In terms of Section 6 of the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000) the administration of a municipality must:

(a) Be responsive to the needs of the local community; (b) Facilitate a culture of public service and accountability amongst staff; (c) Take measures to prevent corruption; (d) Establish clear relationships, and facilitate cooperation and communication between itself and the local community; (e) Give members of the local community full and accurate information about the level and standard of municipal services they are entitled to receive; and

(f) Inform the local community how the municipality is managed, of the costs involved and the persons in charge.

To comply with the above, the Municipality has established the legislatively required structures such as Section 80 Portfolio Committees advising the Executive Mayor, Council committees such as the Municipal Public Accounts Committee (MPAC), Section 62 Appeals Committee, Special (Disciplinary) Committee, as well as a Fraud and Risk Management Committee. An Audit Committee comprising of independent external members also advises Council. The Audit Committee also serve as the Municipality’s Performance Audit Committee and meets quarterly. A quarterly report reflecting the Audit Committee’s recommendations relating to the areas of financial management and control, performance management, internal control, risk management and governance matters is tabled in Council. These structures assist the Municipality to discharge the necessary public accountability responsibilities. These structures represent a segmentation of duties amongst staff and public representatives to ensure accountability, transparency and good governance.

Council approved a ward committee system for each of the 31 wards after the elections in 2011 and the system is fully operational. The chairperson of the ward committee is the elected Ward Councillor and other members of the ward committee are elected by the residents of the ward. It is expected of the ward committees to hold regular meetings – at least once every three (3) months – and the minutes are submitted to the Speaker’s Office. The functionality of the ward committees is monitored and reported on to Council on a quarterly basis.

During the period under review 33 ward committees were established after the Local Government Elections held on 3 August 2016. The establishment of ward committees took place in accordance with the Rules Regulating the Election and Establishment of Ward Committees which was adopted by Council. The Ward Committees received Induction Training during February 2017 with the support of the Sub-directorate: Public Participation of the Provincial Department of Local Government.

The Council of the Drakenstein Municipality, at a Council meeting held on 29 March 2017, approved the Terms of Reference for the IDP Representative Forum. The Terms of Reference (approved by Council on 29 March 2017 – Item 8.5), was designed with due consideration of the parameters provided through Regulation 796 and other legislation applicable to the notion of public participation, the unique Drakenstein context and the input from various stakeholders and role players in the IDP, Budget and Performance Management processes of the municipality.

Communication with the community through other media has continuously improved by focussing on effective and relevant information sharing. The website has been well maintained and features all the documentation required in terms of legislation as well as public policies, documents and by-laws informing residents about the affairs of the Municipality. It provides for interactive functions on the website which entail additional and

user-friendly methods to the public to communicate with the Municipality. These features will be continuously expanded in years to come.

Media and communication are receiving constant attention and the Municipality respond to media enquiries on a weekly basis. The Municipality has commissioned a centralised Complaint Management System to upgrade customer care and established a central Customer Care Unit within the Municipality.

When the Annual Report is completed, it is made available at all the libraries and the two Thusong Centres in addition to the required distribution to other spheres of government. The MPAC scrutinises the report and also invites public comment on it.

2.4 PUBLIC MEETINGS

COMMUNICATION, PARTICIPATION AND FORUMS

In terms of Chapter 4 of the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000), the municipality is required to establish appropriate mechanisms, processes and procedures to enable the local community to participate in the affairs of the municipality. During the year under review, the Municipality used the following mechanisms to comply with this legislative requirement:

 Ward committee meetings (discussed in more detail below);  Public notices in local and regional newspapers;  Monthly public newsletters distributed to all account holders;  Press releases as and when required;  Receipt and consideration of petitions and objections;  Public IDP and consultative meetings; and  Functioning of a municipal website, regularly updated with recent news.

Public meetings are essential mechanisms for the municipality to consult with the local community. The information gathered during such meetings is a key source that feeds into the IDP review process. The information gained at the meetings held during the year under review was useful and assisted the Municipality to plan for short-, medium- and long-term projects. One of the main advantages of public meetings is the platform that it provides the Municipality to interact with the community and to convey its message directly.

An IDP Representative Forum was operational during this period and covered the following interest groups:

 Women, Children, Youth and ECD;

 Vulnerable Groups (HIV/AIDS, Disabled, Elderly, Substance Abuse);  Arts, Crafts, Sport and Culture;  Religion;  Media, Business, Agriculture; and  Environmental Management.

The IDP Representative Forum was consulted throughout the year on the process of the IDP Review at least twice a year. Inputs from the various sectors / interest groups were then discussed, referred to other spheres where applicable and responded to where possible, in the Integrated Development plans. The forum broadened the communication process with our community and focused the interaction on the aspects within the interest groups. During the budget process, meetings are held with business, bulk users and other interest groups to obtain their input on the proposed tariffs for the next financial year and, after approval of the budget, various groups are engaged to address any queries they may have on the implementation of the tariffs. The budget is also discussed in the wards with the communities when inputs are invited on the draft budget.

WARD COMMITTEES

Section 73 of the Local Government: Municipal Structures Act, 1998 (Act 117 of 1998) stipulates:

(1) If a metro or local council establishes ward committees it must establish a ward committee for each ward in the municipality. (2) A ward committee consists of: (a) The councillor representing that ward in the council, who must also be the chairperson of the committee; and (b) Not more than 10 other persons.

A ward committee system consisting of ward committees for each of the 31 wards was functional until the local government elections held during August 2016. The new term of office introduced two additional wards and therefore Council approved ward Committees in all of the 33 wards during November 2016. The chairperson of the ward committee is the elected Ward Councillor and other members of the ward committee were elected by the residents of the ward. It is expected of ward committees to meet regularly – at least once every quarter and the minutes are submitted to the Speaker’s Office. The functionality of the ward committees is monitored and reported to Council by the Speaker and his office on a quarterly basis.

Ward committees form an essential part of the public participation process and these structures are particularly useful to ensure a relationship between Councillors and ward residents. It provides the opportunity to discuss local matters that concern the residents in

that ward. The Municipality annually avails funding to each ward in order to undertake specific projects in such wards. Ward committees play an important role in this regard as they advise on the projects they would like to be implemented. These ward projects further strengthen the relationship between the Municipality and the communities due to the direct impact that the ward committees can make on development projects in their wards.

The purposes of ward committees are:

 To act as an advisory committee to the Ward Councillor and Council;  To ensure two-way communication to and from the community;  To identify ward specific needs and to refer same to the administration and Council for attention;  To actively partake in the annual IDP ward based public meetings;  To assist the Ward Councillor in identifying ward projects and ward capital projects;  To identify stakeholders in the wards and to liaise with them regarding matters needing attention; and  To discuss ward related Council agenda items and to make inputs regarding same if necessary.

The major issues dealt with by Drakenstein ward committees were the following:

 Advising the Ward Councillor and Council on ward issues dealt with by Council;  Identifying ward specific needs and referring it to the administration and Council for attention;  Participation in the annual IDP ward based public meetings;  The identification of operating and capital ward projects;  Identifying stakeholders in the wards and liaising with them regarding matters needing attention; and  Discussions on ward-related Council Agenda items and to make inputs regarding same if necessary.

Public Meetings Number of Number of Number of Nature and Dates and manner Date of participating participating community purpose of of feedback given to events municipal municipal members meeting community Councillors Administrators attending 7 Sector 14/09/2016 Engagements, 66 to 99 619 2,482 Same day, through Ward IDP 02/10/2016 Customer Care Meetings and 1 System, Ward Public Top 100 04/04/2017 Meetings and at Electricity to 75 620 1,829 following IDP Consumers 04/05/2017 Meetings meeting held. Municipal Public 09/03/2017 7 x Councillors 6 x Executive The MPAC reports to None Accounts (9th), Managers, Officials Council and their

Public Meetings Number of Number of Number of Nature and Dates and manner Date of participating participating community purpose of of feedback given to events municipal municipal members meeting community Councillors Administrators attending Committee 22/06/2017 7 x Councillors and the Chief Internal (Meeting of recommendations (MPAC) (22th) Audit (9th) the 9th are contained in the 7 x Executive attended by Council agenda. Managers, Officials member of and the Chief Internal the Audit Audit (22th) Committee) Table 15: Public Meetings

2.5 IDP PARTICIPATION AND ALIGNMENT IDP Participation and Alignment Criteria Yes No Does the municipality have impact, outcome, input, output indicators? √ Does the IDP have multi-year targets? √ Are the above aligned and can they calculate into a score? √ Does the budget align directly to the KPIs in the strategic plan? √ Do the IDP KPIs align to the Section 56 managers and City Manager? √ Do the IDP KPIs lead to functional area KPIs as per the SDBIP? √ Do the IDP KPIs align with the provincial KPIs on the 12 outcomes? √ Were the indicators communicated to the public? √ Were the four quarterly aligned reports submitted within stipulated timeframes? √ Table 16: IDP Participation and Alignment Criteria

COMPONENT D: CORPORATE GOVERNANCE

Overview of Corporate Governance Governance in Drakenstein Municipality encompasses line functions pertaining to political and administrative governance, audit, risk management, organisational and individual performance management, public participation and IDP, intergovernmental relations, public communication, human resource management, organisational development and legal services. The governance function is supported by an independent Audit Committee, comprising of external specialists having the necessary skills to provide effective oversight of the Municipality’s systems of internal control, risk management and governance processes. The Audit Committee is supported in its role by the Internal Audit function which performs audits in terms of an approved audit plan and reports to the Audit Committee on a quarterly basis. The Municipal Public Accounts Committee (MPAC) comprises of independent Councillors. In order to promote independence and objectivity, the MPAC is chaired by a Councillor from a political party other than the majority party in Council.

2.6 RISK MANAGEMENT

Section 62(i)(c) of the MFMA requires a municipality to have and maintain an effective, efficient and transparent system of risk management.

There is a danger that risks which fall outside traditional functions may go unmanaged and have serious consequences on the institutional objectives. The need for broad-based risk management is thus critical as it will also ensure that risks which were not previously given adequate attention are now properly managed. Risk management processes that are integrated in the institution’s existing structures are likely to be more effective in producing the desired service delivery and other objectives.

The Risk Management Division is responsible for the Risk Management function at Drakenstein Municipality through facilitation and advising on fraud- and risk management issues. This entails the development of policies, strategies, plans and processes.

Drakenstein Municipality established a Fraud- and Risk Management Committee (FARMCO), which meets on a quarterly basis and assists in the development and revision of all policies, strategies, plans and processes. In the financial year under review, the current Risk Management Policy, Strategy as well as Plan were revised.

The Risk Register, linked to key performance areas (strategic objective) and key focus areas, was reviewed with all the directorates through a facilitation process.

The ten top strategic risks identified were:

 Failure or inability to maintain and manage assets;  Failure to communicate and liaise effectively with stakeholders;  Failure to manage and mitigate the impact of adverse environmental, social, economic and other local, national and global conditions;  Failure to manage municipal finances effectively and ensure financial sustainability;  Inability to maintain acceptable service standards in respect of core service delivery responsibilities;  Inability to manage illegal actions;  Inability to meet the human settlement demands;  Inadequate human resource management;  Inadequate ICT infrastructure and systems; and  Loss of economic development opportunities and inability to grow local economy.

2.7 INTERNAL AUDIT

Internal Audit is an independent function reporting administratively to the Accounting Officer and functionally to the Audit Committee. Internal Audit performs audits in terms of a three year strategic and one year operational plan which is approved by the Audit Committee at the commencement of each financial year. The priorities in the Internal Audit Plan can be categorised in terms of audits focusing on the systems of internal control, risk management and governance processes. The prioritisation of audits in these three categories is based

primarily on the municipality’s risk profile as well as legislative requirements. Internal Audit reports to the Audit Committee on a quarterly basis regarding progress with the implementation of the approved plan as well as the outcome of audits conducted in terms of the approved plan. Internal Audit also performs follow-up audits to assess the implementation of agreed management action plans in response to reported internal audit findings. Internal Audit executes its duties in terms of the International Standards for the Professional Practice of Internal Auditing (Standards) issued by the Institute of Internal Auditors.

2.8 ANTI-CORRUPTION AND FRAUD

The Fraud- and Risk Management Committee (FARMCO) meets on a quarterly basis and assists with the development and revision of all policies, strategies, plans and processes relating to fraud risk management. In the financial year under review, the current Fraud Prevention Policy and Strategy were incorporated in the Risk Management Policy. FARMCO review the effectiveness of prevention initiatives, detection techniques as well as progress made in any forensic investigations, and thereby also function as an oversight body. Drakenstein Municipality appointed Deloitte to provide an anonymous fraud and ethics hotline service for the reporting of theft, fraud and corruption.

FRAUD AND ANTI-CORRUPTION STRATEGY Notes: See Chapter 4 for details of disciplinary action taken on cases of financial mismanagement. MSA 2000 S83(c) requires providers to be chosen through a process which minimises the possibility of fraud and corruption.

2.9 SUPPLY CHAIN MANAGEMENT

OVERVIEW OF SUPPLY CHAIN MANAGEMENT

Demand Management The objective of demand management is to assist the Municipality with the planning for the procurement of goods, works or services in a proactive manner and to move away from merely reacting to purchasing requests. Certain aspects of demand management were implemented, i.e. the Capital Projects Implementation Plan (CPIP) that encapsulates all capital projects. This planning document assists directorates to timeously plan for procurement of capital goods / projects where directorates are required to commit procurement due dates for their respective capital projects expenditure. During the past financial year, a total of 105 tenders / contracts were awarded. The CPIP is a monitoring tool that provides the Accounting Officer with an oversight regarding the spending of capital funds during the financial year.

Acquisition Management The Supply Chain Management (SCM) Unit processed a total of 16,649 orders for the 2016/17 financial year. The total value of the orders that were processed amounted to R 892,081,516.

Policy Amendments The SCM Policy was reviewed during the 2015/16 financial year. Certain amendments to the SCM Policy were tabled before Council in order to improve operational efficiency. The Municipality has to forward the current SCM Policy to the Western Cape Provincial Treasury on an annual basis for scrutiny and compliance verifications against the SCM Policy model that was issued by National Treasury. The purpose of this exercise is to determine whether the Municipal SCM Policy deviates from the stipulations of the SCM Regulations. Drakenstein Municipality’s SCM Policy complies with the regulatory framework.

Invitation and evaluation of bids based on a stipulated minimum threshold for local production and content Regulation 9(1) of the Preferential Procurement Regulations, 2011 and Regulation 8(1) of the Preferential Procurement Regulations, 2017 makes provision for the Department of Trade and Industry, in consultation with the National Treasury to designate sectors for which local production and content is of critical importance when bids are awarded. Such bids must be advertised with a specific condition that only locally produced goods, works or services or locally manufactured goods with a stipulated minimum threshold for local production and content, as prescribed, will be considered. However, it is important to note that these requirements are only applicable to the following sectors:

Sector Description % Local Content Textile, clothing, leather and footwear 100% Steel power pylons 100% Electrical and telecom cable products 90% Furniture 85% - 100% Canned/processed vegetables 80% Buses (bus body) 70% - 80% Valve products and actuators 70% Solar water heater components 70% Rail rolling stock 55% - 80% Rail signalling system 40% - 100% Set-top boxes 30% Solar photovoltaic system and components 15% - 90% Residential electricity meters and water meters 50% - 70% Fire fighting vehicles 30% - 100% Transformers, shunt reactors, and associated equipment 10% - 90% Wheelie bins 100% Working vessels (boats) 10% - 100% Table 17: Procurement per sector

Cognisance should be taken of the fact that the Municipality may only make awards for the abovementioned goods if the bidders comply with the minimum requirements.

2.10 BY-LAWS

By-laws introduced during 2016/17 Public Participation By-laws conducted prior to Dates of Public Date of Newly developed Revised Gazetted adoption of By- Participation publication (Yes/No) laws (Yes/No) Amendment of By-Law 28 June 1/2008 Outdoor 2017 Yes 23 March 2017 Yes 7 July 2017 Advertising and (Council Signage adopted) Table 18: By-laws introduced during 2016/17

Section 11(3) of the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000) provides municipal councils with the legislative authority to pass and implement by-laws for the betterment of the community within the terms of the legislation.

In terms of Section 160(3) of the Constitution of the Republic of South Africa, 1996 (Act 108 of 1996):

 The by-laws serve before the various structures of the Council;  The by-laws are advertised in the local media for objections or comment;  The by-laws are open for inspection at all municipal offices and libraries; and  The by-laws are forwarded to the local radio station for broadcasting.

Once adopted by Council, the by-laws are promulgated in the Provincial Gazette and take immediate effect.

The following by-laws were passed in the 2016/17 financial year:

By-law Promulgation Status Amendment of By-Law 1/2008 Outdoor Advertising and Signage 7 July 2017 Table 19: By-laws passed

2.11 WEBSITES

Municipal Website: Content and Currency of Material Documents published on the Municipality’s website. Yes/No Publishing Date Annual and adjustments budgets and all budget-related documents Yes 01/07/2016 – 30/06/2017 All budget-related policies Yes 01/07/2016 – 30/06/2017 The previous Annual Report 2015/16 Yes 04/04/2017 The Annual Report 2016/17 published / to be published No 31/01/2018 All current performance agreements (2016/17) and resulting scorecards required in terms of Section 57(1)(b) of the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000) Yes 06/02/2017

Municipal Website: Content and Currency of Material Documents published on the Municipality’s website. Yes/No Publishing Date All service delivery agreements (2016/17) Yes 01/07/2016 – 30/06/2017 All long-term borrowing contracts (2016/17) Yes 01/07/2016 – 30/06/2017 All Supply Chain Management Contracts above a prescribed value (above R 200,000) for 2016/17 Yes 01/07/2016 – 30/06/2017 All information statements containing a list of assets over a prescribed value that have been disposed of in terms of the MFMA Section 14(2) or (4) during 2016/17 No N/A Contracts agreed in 2016/17 to which the MFMA Subsection (1) of Section 33 applies, subject to Subsection (3) of that Section No None concluded Public-private partnership agreements referred to in the MFMA Section 120 made in 2016/17 No None concluded All quarterly reports tabled before Council in terms of the MFMA Section 52(d) during 2016/17 Yes 01/07/2016 – 30/06/2017 Table 20: Municipal Website Content

2.12 PUBLIC SATISFACTION WITH MUNICIPAL SERVICES

The centralised complaints management system procured to improve customer care is fully operational. Additional access options have been introduced in order to ensure that all residents have easy access to the system. In addition, the system has been expanded to all directorates of the Municipality. During the reporting period a total number of 22,513 service requests were registered and more than 21,487 of these service requests were dealt with within the period. It is clear that the system is being utilised extensively by the residents and the Municipality.

Service Level Standards for Building Plan Applications:  Comments on building plan applications up to 500m² to be provided by departments / divisions to Building Control within 5 working days;  Comments on building plan applications larger than 500m² to be provided by departments / divisions to Building Control within 10 working days; and  Complaints received regarding unauthorised building work to be addressed within 48 hours by Building Control.

Chapter 1: Executive Mayor’s Foreword and Executive Summary

Chapter 2: Governance

Chapter 3: Service Delivery Performance (Performance Report)

Chapter 4: Organisational Development Performance

Chapter 5: Financial Performance

Chapter 6: Auditor-General Audit Findings

Appendices

CHAPTER 3: SERVICE DELIVERY PERFORMANCE  Component A: Basic Services  Component B: Road Transport  Component C: Planning and Economic Development  Component D: Community and Social Services  Component E: Environmental Protection  Component F: Security and Safety  Component G: Sport and Recreation  Component H: Corporate Policy Offices and other services

INTRODUCTION

Council focused on ensuring that the ward committee system is functional and held IDP road show meetings in each of the 33 wards to ensure that all residents have the opportunity to participate in the process of the development of the budget, prioritisation of needs and to receive feedback on the operations of the Council and Administration.

The Local Economic Development Unit has continued its dual focus on encouraging and supporting emerging businesses and entrepreneurs, while assisting established business to grow and retain their foothold in Drakenstein. The new informal trading site was opened at Arendsnes and work has commenced to create opportunities for small scale traders as well as those entrepreneurs who have more experience and it is hoped that this mix will assist in mentorship. These entrepreneurs will be taken though a business management course to assist them in growing their businesses. A contractor development program has also commenced in collaboration with the Provincial Authorities. The number of events and tourism activities increased year-on-year and the relationship between the Municipality and the Drakenstein Local Tourism Association is sound and fruitful.

In planning, improvements to the processing of development applications, including building plan approvals, was given further impetus as part of cutting red tape to facilitate an enabling environment for businesses to operate efficiently. Improving internal efficiencies is a central aspect of improving the local economy and through attracting investment. Within the context of local economic development, the allocation and spending of capital budgets to improve the conditions of informal traders in Paarl and Wellington were significant steps towards improved livelihoods.

The Department of Human Settlements delivered 99 housing opportunities out of the targeted 150 for the financial year, translating into a 66% success rate. This is a substantial decrease from the previous financial year.

Drakenstein Municipality successfully compiled a cash-funded revised budget. Sound budget controls were implemented and 97.1% of the operating budget was spent. The underspending

is discussed under paragraph 1.4 (key successes and outcomes for 2016/17) in the Annual Report. The Auditor-General of South Africa gave the Drakenstein Municipality an unqualified audit opinion on the Annual Financial Statements for sound financial accounting and record- keeping. No qualifications on the supply chain management processes were identified, which indicates sound procurement processes.

A total of 1,004 new electrical services were connected to the Drakenstein electrical network. Of these services 484 were electricity connections for informal households which were funded by the Department of Energy’s INEP programme.

Substation switchgear upgrading at Suid-End Substation was completed to replace old and obsolete equipment. This upgrade exercise will facilitate the increase of capacity at the substation for future development growth in the Southern Paarl and Simondium areas. The Kliprug Substation was completion to support infrastructure load to the Val De Vie and Pearl Valley development areas. It was only commissioned in July 2017.

Drakenstein Municipality’s Top-layer SDBIP consisted of 72 key performance indicators with performance targets for the five national KPA’s and seven municipal KPA’s. Sixty-five (65) of the targets (90.3%) were met during the year under review. Seven (7) of the targets (9.7%) could not be met. Details of the KPI’s and performance targets met and not met can be found in Volume V: Annual Performance Report 2016/2017 at the back of the Annual Report.

COMPONENT A: BASIC SERVICES

Electricity, water and sewerage services are fundamentally important basic services to ensure a healthy and safe environment for all Drakenstein inhabitants. These basic services sections play a very important part in the planning and installation of basic services in all informal settlements in the Drakenstein Area over which these sections have control.

3.1 WATER PROVISION

INTRODUCTION TO WATER PROVISION

The basic functions of the Water Services Section are to upgrade existing water infrastructure, extend the network and maintain the existing network.

The upgrading of existing reticulation is planned in terms of priorities as determined in the IDP, as per the Water Master Plan, by Council and Technical Services. The implementation of this strategy is wholly dependent on the provision of an adequate budget. Major achievements for the past financial year were the construction and completion of the second 11 Mℓ Newton Reservoirs at Newton, Wellington. The main challenge in this regard is to obtain sufficient funding to upgrade the existing water networks in Paarl and Wellington.

The construction of the 5 Mℓ reservoir at Welvanpas (Wellington) was completed, the first of two 8 Mℓ Courtrai reservoirs and replacement of the existing bulk water pipe at Courtrai (Paarl) are in progress and will be completed in 2018. The construction of the new 10 Mℓ/day Welvanpas Water Treatment Works (WTW) with a total value of R 62 million is in progress and will be completed by end 2018. The third phase of a possible seven phases of the Strawberry King pipeline with a total value of R 120 million is in progress. The planning of new Newton- Leliefontein booster pump station and inline power generation turbine at Leliefontein, Paarl, is in progress. The project will be completed by end March 2018.

Water use by sector Within the constraints of the budget, the Water Section is performing satisfactorily.

The main objectives in the Water Section are to upgrade existing water mains to new and higher service level standards and to extend the service life of existing bulk water infrastructure in accordance with the Water Master Plan.

Total use of water by sector (cubic metres) Industrial/ Unaccountable Year Residential Other Business water losses 2014/15 8,878,467 1,893,238 5,585,760 2,880,923 2015/16 8,876,484 1,886,305 5,456,529 2,452,810 2016/17 7,325,350 1,644,514 4,544,688 1,393,527 Table 21: Total use of water by sector (cubic metres)

A total of 7,212 metres of water reticulation mains were upgraded in Paarl and Wellington. In total, 276 water connections were installed in the Drakenstein Area. A total of 335 burst pipes were repaired on reticulation networks; 1,811 water connections were repaired and 583 water meters were replaced during the year. A total number of 132 water meters were stolen and replaced by the Municipality. A total of 6,606 water leaks on private properties were repaired during the financial year.

Water use statistics are reflected in the table and chart below.

Water use by Sector 10,000,000 9,000,000 8,000,000 7,000,000 6,000,000 2014/15

CubicMetres 5,000,000 4,000,000 2015/16 3,000,000 2016/17 2,000,000 1,000,000 - Residential Industrial & Other Unaccounted Business water losses

Graph 6: Water use by Sector

Water Service Delivery Levels Households 2014/15 2015/16 2016/17 Description Actual Actual Actual No. No. No. Water: (above minimum level) Piped water inside dwelling 38,565 39,222 39,544 Piped water inside yard (but not in dwelling) 21,829 22,959 24,469 Using public tap (stand pipes ) 0 0 3,709 Other water supply (within 200 m) 4,157 3,728 407** Minimum Service Level and Above sub-total 64,551 65,909 68,129 Minimum Service Level and Above Percentage 100% 100% 99.6% Water: (below minimum level) Using public tap (more than 200 m from dwelling) 148 148 0 Other water supply (more than 200 m from dwelling) 15 0 163** No water supply (rural) 134 134 134** Below Minimum Service Level sub-total 297 297 297 Below Minimum Service Level Percentage 0.5% 0.5% 0.4% Total number of households* 64,848 66,613 68,426 Table 22: Water Service Delivery Levels **Farms which do not form part of the Municipal Water Reticulation System. Figures from 2011 Census. These figures can only be updated once the information from the detail service level rural survey on the farms becomes available.

Households – Water Service Delivery Levels below the minimum Households 2014/2015 2015/2016 2016/2017 Description Actual No. Actual No. Actual No. Formal Settlements Total households 64,848 66,613 68,426 Households below the minimum service level 297* 297* 297* Proportion of households below the minimum service level 0.45% 0.45% 0.43% Informal Settlements Total households 3,750 3,728 3,709 Households below minimum service level 0 0 0 Proportion of households below minimum service level 0% 0% 0% Table 23: Households – Water Service Delivery Levels below the minimum *Farms

Access to water 99.575 99.57 99.57 99.57 99.57 99.565 99.56 99.555 99.55 99.55 99.55 99.55 99.545 99.54 99.54 99.54 99.54 99.535 99.53 99.525 Proportion of households with Proportion of households with Proportion of households access to water points* access to piped water receiving 10 kl free#

2014/15 2015/16 2016/17

Graph 7: Access to water * Note that the percentage of households with access to basic services indicated in the graph does not include rural households.

Water Service Policy Objectives taken from IDP Strategic Objective (SO): Physical Infrastructure and Energy Efficiency Municipal Key Focus Area (KFA): Water and Sanitation Infrastructure Annual Ref Actual Name of Key Performance Indicator (KPI) Unit of Measurement Target no. 2016/17 2016/17 Implement all Water Services infrastructure % of approved Capital TL49 capital projects measured quarterly in terms 96% 99.97% Budget spent by 30 June. of the approved Capital Budget spent. Table 24: Water Service Policy Objectives taken from IDP

Employees: Water Services 2015/16 2016/17 No. of Vacancies Vacancies (as No. of No. of (full-time a % of total Job Level Employees No. of Posts Employees equivalents) posts) 0-3 (T18 – T20) 0 0 0 0 4-6 (T15 - 17) 2 3 3 0 7-9 (T12 – 14) 3 7 7 0 10-12 (T9 – 11) 6 37 10 27 72.9% 13-15 (T6 – 8) 13 13 9 4 30.7% 16-18 (T3 – 5) 8 95 55 40 42.1% 19-20 (T1 & 2) 48 0 0 0 Total 80 155 84 71 45.8% Table 25: Employees – Water Services

The Water Services Section has 44.5% vacancies in terms of the approved organogram, of which 36 posts are critical. Some posts are vacant due to people resigning, retirement or death and are already funded.

Financial Performance 2016/17: Water Services Rand 2015/16 2016/17 % Variance Details Original Adjustments to Actual Actual Budget Budget Adjustments Budget Operational Revenue (183,857,180) (204,316,340) (204,316,340) (208,918,141) 2.2% Expenditure: Employees 39,623,597 41,754,649 43,391,876 43,441,978 0.1% Impairment losses on financial assets 11,932,144 9,736,762 15,936,762 15,854,743 -0.5% Interest Paid 4,853,908 5,104,920 5,104,920 5,740,953 12.4% Contracted Services 10,804,106 10,174,664 13,858,433 12,788,877 -7.7% Depreciation and Provisions 16,839,909 18,072,601 18,378,446 17,042,939 -7.2% Inventory 805,889 979,716 1,086,456 970,854 -10.6% Operational Cost 38,920,244 13,107,574 38,464,864 33,649,106 -12.5% Total Operational Expenditure 123,779,797 98,930,886 136,221,757 129,489,450 -4.9% Operating (Surplus) / Deficit (60,077,383) (105,385,454) (68,094,583) (79,428,691) 16.6% Table 26: Financial Performance 2016/17 – Water Services

Capital Expenditure 2016/17: Water Services Rand 2016/17 % Variance to Capital Projects Adjustments Actual Total Project Budget Adjustments Budget Expenditure Value Budget Total all 101,498,977 124,503,377 124,472,320 0.02% 124,503,377 Major projects 11 Ml Newton Reservoir 7,698,599 23,320,222 23,296,988 0.10% 23,320,222 8 Ml Courtrai Reservoir 20,000,000 34,915,895 34,915,895 0.00% 34,915,895 Welvanpas WTW & Buildings 33,440,817 16,961,691 16,961,691 0.00% 16,961,691

Table 27: Capital Expenditure 2016/17 – Water Services

All available funds were spent on the various capital projects. The following projects were completed as planned:

(1) The construction of the second 11 Mℓ Newton reservoir and related pipework was completed and the reservoirs are operational; and (2) A total length of 7,212 m of pipelines varying between 110 mmØ and 630 mmØ was installed in Paarl and Wellington.

Additional capital funding is required for the replacement of pipe infrastructure. An amount of R 28.5 million per annum and R 19.5 million is needed. All available funds were spent on the various capital projects.

3.2 WASTEWATER (SANITATION) PROVISION

The basic functions of the Wastewater Section (Sanitation) are to upgrade existing sewerage infrastructure (as to meet future requirements), extend the network (provide higher level of service to consumers) and maintain the existing network (ensure adequate rehabilitation and maintenance).

The upgrade of existing reticulation is planned in terms of priorities as determined in the IDP, as per the Sewerage Master Plan, by Council and Civil Engineering Services. Major achievements for the past financial year include the completion of the Paarl South bulk sewer and the commissioning thereof. The construction of the bulk sewer to Southern Paarl, phase 3 under National Road – N1 and Berg River (siphon) have been completed and is operational.

Other completed projects include:  Open trench pipe line (150 m) in Dreyden Street, Wellington;  Pipe cracking (250 m) in Fair View Street, Paarl;  Construction of 46 connection manholes in Wellington. (22 x Cavernelis Street, 9 x Dreyden Street and 15 x Hospital Street);  Pipe cracking in Berg Street, Wellington;  Pipe cracking in Jan Groentjie Street, Paarl;  Pipe cracking in Castle Street, Paarl;

 Pipe cracking in Boy Louw Sports Grounds, Paarl;  Pipe cracking in Barnett Street, Paarl;  Pipe cracking in Long Street, Paarl;  Pipe cracking in Long Street 2, Paarl;  Pipe cracking in High Street, Wellington;  Pipe cracking in Landfill Site, Wellington (160 mm DIA waterline);  Pipe cracking in Piet Retief Street, Wellington;  Pipe cracking in Kearns Street, Paarl;  Pipe cracking in Lantana Street, Paarl;  Pipe cracking in Frater Street, Paarl;  Pipe cracking in Mentoor Street, Wellington;  Pipe cracking in Fontein Street, Wellington;  Pipe cracking in Addy Street, Wellington;  Pipe cracking in South Street, Wellington;  Pipe cracking in Mount View Street, Paarl; and  Pipe cracking in Main Road, Paarl.

It is a major challenge to obtain sufficient funding to upgrade and maintain the existing sewer networks in Paarl, Hermon, Gouda, Saron and Wellington. Rehabilitation and maintenance of the existing infrastructure considering the extent of the backlogs of these services.

The Southern Paarl Bulk Sewer Project stretches from the Paarl WWTW to the southern side of the N1 National Road all along the eastern banks of the Berg River and crosses the Berg River on the southern side of the N1. It also includes a bulk sewer pipeline along Carolina Road to Amstelhof in Paarl East and two siphon pipelines underneath the Berg River to connect the sewer network on the west bank of the Berg River to the new bulk sewer.

The bulk sewer lines will be connecting areas to the south and south east of the Paarl WWTW and approximately 42,500 people (existing and new) will connect to these lines. The existing bulk sewer lines could cope with peak demands and some of the pipelines have also reached the end of their product life cycle. The new bulk sewer lines have already connected a number of existing informal and affordable housing schemes and will eliminate spillage of sewerage due to existing pipes not coping with the peak flows.

As the Berg River is a major source of irrigation water for fruit farmers downstream of Paarl, sewer spillages resulted in the deterioration of the quality of water in the river and often do not meet the standards required for irrigation of fruit. With the recent upgrades to the Paarl WWTW and the current new bulk sewer these spillages will be avoided.

The total cost of this multi-year project is approximately R 350 million, of which a portion was funded by the Municipal Infrastructure Grant (MIG) and Regional Bulk Infrastructure Grant (RBIG). The latest estimate for completion of the (RBIG) project specifically is approximately

R 263 million and is co-funded by the Department of Water and Sanitation via the regional RBIG programme with R 99.9 million and with Drakenstein’s own funding portion of R 163.0 million.

Numerous jobs were created for local labour and to date an accumulative of 410 local labourers were employed on the RBIG project totalling to approximately 99,560 man-days and R 14.5 million in wages.

To date Paarl Bulk Sewer Phase 1 and Phase 2, West Bank, Carolina Phase 1 and 2 and Paarl Bulk Sewer Phase 3 (Partially) have been completed, a total length of approximately 15.0 km of bulk sewers varying from 600 mm diameter to 1,800 mm diameter. All pipelines were laid to specification and minimum deviations occurred and are operational. The last phase is currently under construction and includes the crossing of the Arboretum Road and N1 National Road by means of trenchless pipe jacking methods, as well as a syphon pipeline crossing of the Berg River. This will be followed by a number of connector lines on the southern side of the N1 to connect to the new bulk sewer.

The project has a good safety record with no incidents to date and minimum environmental findings were recorded. The portion of the pipeline through the Arboretum went very well and all trees could be maintained due to specialist piling methods applied.

Sanitation/Sewerage 70000

60000

50000

40000 2014/15

30000

Households 2015/16 20000

10000 2016/17

Pit toilets Pit

Septic tanks Septic

Bucket toilet Bucket

Chemical toilet Chemical

No toilet provisions toilet No

Waterbourne sewerage Waterbourne

Other (> minimum level) minimum (> Other level) minimum (< Other

Graph 8: Sanitation/Sewerage

Sanitation Service Delivery Levels *Households 2014/15 2015/16 2016/17 Description Actual Actual Actual Numbers Numbers Numbers Sanitation/sewerage: (above minimum level) Flush toilet (connect to sewerage) 55,595 57,223 58,897 Flush toilet (with septic tank) 7,893 8,030 8,169 Chemical toilet 35 35 35 Pit toilet (ventilated) 142 142 142 Other toilet provisions (above minimum service level) 0 0 0 Minimum service level and above sub-total 63,665 65,430 67,243 Minimum service level and above percentage 98.1% 98.2% 98.3% Sanitation/sewerage: (below minimum level) Bucket toilet 378** 378* 378* Other toilet provisions (below minimum service level) 451** 451* 451* No toilet provisions 354** 354* 354* Below minimum service level sub-total 1,183 1,183 1,183 Below minimum service level percentage 1.9% 1.8% 1.7% Total households 64,848 66,613 68,426 *Total number of households including informal settlements Table 28: Sanitation Service Delivery Level **Farms which do not form part of the Municipal Water Reticulation System. Figures from 2011 Census

Households – Sanitation Service Delivery Levels below the minimum Households 2014/15 2015/16 2016/17 Description Actual Actual Actual Number Number Number Formal Settlements Total Households 64,848 66,613 68,426* Households below minimum service level 1,183 1,183 1,183 Proportion of households below minimum service level 1.9% 1.8% 1.7% Informal Settlements Total Households 3,750 3,728 3,709 Households below minimum service level 0 0 0 Proportion of households below minimum service level 0 0 0 Table 29: Households – Sanitation Service Delivery Levels below the minimum * Households not budgeted for as sanitation on farms is done by farm owners. Farms which do not form part of the municipal water reticulation system. Figures from 2011 Census Data.

Wastewater (Sanitation) Service Policy Objectives taken from IDP Strategic Objective (SO): Physical Infrastructure and Energy Efficiency Municipal Key Focus Area (KFA): Water and Sanitation Infrastructure Annual Ref. Actual Name of Key Performance Indicator (KPI) Unit of Measurement Target no. 2016/17 2016/17 Implement all Wastewater Services infrastructure capital projects measured % of approved Capital Budget TL50 96% 99.99% quarterly in terms of the approved Capital spent by 30 June. Budget spent. Table 30: Wastewater (Sanitation) Service Policy Objectives taken from the IDP

Employees: Sanitation Services 2015/16 2016/17 No. of Vacancies (as No. of No. of Vacancies No. of Posts a % of total Employees Employees (full-time posts) Job Level equivalents) 0-3 (T18 – T20) 0 0 0 0 4-6 (T15 - 17) 1 3 1 2 66.7% 7-9 (T12 – 14) 6 12 3 10 83.3% 10-12 (T9 – 11) 4 29 8 21 72.4% 13-15 (T6 – 8) 30 52 15 37 71.1% 16-18 (T3 – 5) 3 90 81 9 10.0% 19-20 (T1 & 2) 63 0 0 0 Total 107 186 108 78 41.9% Table 31: Employees – Sanitation Services

The Wastewater Section (Sanitation) has 44.8% vacancies on the organogram, of which 15 posts are critical. Some posts are vacant due to people resigning, retirement or death and are already funded. Some of these post are required for statutory compliance with the law to ensure safe and sustainable sanitary services.

Financial Performance 2016/17: Sanitation Services Rand 2015/16 2016/17 % Variance Details Original Adjustments to Actual Actual Budget Budget Adjustments Budget Total Operational Revenue (154,385,582) (131,622,135) (154,912,119) (154,385,582) -0.3% Expenditure Employees 44,684,771 41,715,093 44,760,959 44,684,771 -0.1% Impairment on Financial Assets 5,282,991 5,111,698 5,282,991 5,282,991 0.0% Interest Paid 19,229,276 15,688,996 19,229,277 19,229,276 0.0% Contracted Services 9,591,187 11,807,627 10,200,657 9,591,187 -5.9% Depreciation & Provisions 19,589,791 20,424,165 26,024,165 19,589,791 -24.7% Inventory 2,438,243 2,173,534 2,526,453 2,438,243 -3.4% Operational Cost 16,638,745 10,115,101 15,020,273 16,638,745 10.7% Total Operational Expenditure 117,455,004 107,036,214 123,044,775 117,455,004 -4.5% Operating (Surplus) / Deficit 36,930,578 24,585,921 31,867,344 36,930,578 15.8%

Table 32: Financial Performance 2016/17 – Sanitation Services

Capital Expenditure 2016/17: Sanitation Services R % Adjustments Actual Variance to Total Project Capital Projects Budget Budget Expenditure Adjustments Value Budget Total all 206,656,631 191,167,645 191,144,431 0.01% 191,167,645 Major projects Upgrade Bulk Sewer : Southern 33,057,979 42,139,995 42,139,995 0.00% 42,139,995 Paarl Saron WWTW: Rehabilitation and 17,899,333 28,408,641 28,408,640 0.00% 28,408,641 Upgrading Wellington WWTW: Rehabilitation 108,248,267 86,404,815 86,404,814 0.00% 86,404,815 and Extension

Table 33: Capital Expenditure 2016/17 – Sanitation Services

Paarl Wastewater Treatment Works During the next few years, the following need to be attended to at the Paarl Wastewater Treatment Works :

 Road works;  Upgrade of the inlet works;  Installation of a fully fledged telemetry / SCADA system;  Preventative maintenance programme;  Energy efficiency programmes;  Mechanical and electrical backlog elimination programme;  Upgrade of staff housing quarters;  Achieving Green Drop accreditation; and  Centralising of sludge management.  The appointment of skilled Operational staff in compliance with the Department of Water and Sanitation.

Saron Wastewater Treatment Works The plant has been commisioned and is performing well within the General Authorisation requirements as required by the Department of Water and Sanitation.

Gouda Wastewater Treatment Works The upgrading of the plant has been completed in the first half of 2017 and can accommodate the hydraulic load from the residential area.

Wellington Wastewater Treatment Works The Wellington Wastewater Treatment Works’ refurbishing and extension form part of the 20-year long-term Wastewater Strategy, ensuring that wastewater received at the works is treated appropriately by passing it through an effective treatment process thus protecting downstream users.

The planning and design of the upgrade were completed during the 2013/14 year. The proposed refurbishment and extensions of the works over the next three to four years will comprise the following:

 Refurbishment of the existing process units at the works in order to ensure that it operates at its design capacity and discharges effluent which consistently meets the required standards; and  Constructing new process units to increase the capacity of the works from 7 Mℓ to 16 Mℓ per day to accommodate the future flows, as well as accommodate the flow which is currently being diverted to Paarl WWTW via the Newtown pipeline.

The construction of the extensions and upgrading of the works is well underway an is envisaged to be completed in the second quarter of 2018.

Scientific Services The focus of Scientific Services will be on water pollution control, especially on industries’ monitoring of permits and effluent discharge and any illegal discharge to any water resources. This will ensure the water quality improvement of the Berg River and other water resources. The emphasis will be on monitoring and prosecution to detect the pollution sources and to react proactively.

SANITATION SERVICES PERFORMANCE OVERALL

The bulk sewer projects currently undertaken are: Upgrade bulk sewer: Southern Paarl; Saron WWTW:

Rehabilitation and Upgrading; and, Wellington WWTW: Rehabilitation and Extension.

3.3 ELECTRICITY

INTRODUCTION TO ELECTRICITY

Strategy for the provision of electricity at household level An R 5,000,000 Electrification Grant for low-cost formal and informal households was received from the Department of Energy for the financial year. Due to the limited grant funding received, an informal housing electrification programme was initiated by Council. This programme in turn facilitated the application of electrification funding for the 2017/18 financial year. The grant funding enabled the Municipality to connect 484 informal electricity services during 2016/17. Informal areas serviced included Simondium and Niewenhoop settlements, New Rest Buccaneer Street and Dietman Streets, Carterville and Mfuleni Street, Thembani 2 settlement. Electrification of formal households was done in conjunction with the Housing Projects Unit of the Drakenstein Municipality.

This electrification programme, however, excludes housing which falls within the Eskom supply areas. Formal electrification was carried out as and when top structures became available according to the Housing Programme.

Progress made to redress service backlogs and achieve the national basic standard for electricity provision The Housing Programme and informal settlement areas dictate the Electrification Programme. The planning and application of funds are mainly guided by the Housing Programme and the electrification funds were spent as intended. Informal areas electrification program depends on the annual Electrification Grant Funding received.

Top service delivery priorities and the impact on users during the year: Improved electricity infrastructure measured by effective capital spending. Capital expenditure for electricity infrastructure amounted to 99.86% of the Final Adjustments Budget for the 2016/17 financial year.

The Capital Budget was used to upgrade and extend infrastructure; this is an ongoing process as funds become available.

Maintenance of electricity assets is measured by effective Maintenance Budget spending.

The Operating and Maintenance Budget was used to extend the useful life of electrical assets. Electrical assets were maintained within the available funding constraints.

Measures taken to improve performance Critical posts were identified to be advertised and filled during the financial year. Unfortunately this project was never expedited and the post were left unfilled. A large number of vacancies for suitable and qualified staff to ensure affective service delivery resulted in a slight decrease in normal service delivery levels as a result. A Master Planning Project was prioritised on the multi-year Capital Budget and will be expedited as funding becomes available.

Major successes achieved A tender was awarded for the replacement of 11 kV switchgear at Suid End Substation. Installation and commissioning was completed during the 2016/17 financial year.

A tender for the replacement of three 20 MVA 66/11 kV transformers at Suid End Substation was awarded. The new transformers will be delivered during the 2017/18 financial year.

A new 20 MVA transformer was ordered for Dalweiding Substation to facilitate the new loading that will be required by the developments at Vlakkeland.

During this financial year (38) new applications for the approval and commissioning of solar PV installations to generate electricity back into the Municipal networks were recieved. These applications once all commissioned will deliver 2,655 MVA of generated electricity back into the municipal networks. These co-generation plants are monitored to ensure that the quality of supply criteria as set for the Municipality in terms of NRS standards are maintained. Special precautions are also taken to ensure the safety of Municipal staff working on electrical networks.

Grant funding of R 5,000,000 from the Department of Energy was used to complete a Demand Side Management project whereby existing Sodium Vapour street lighting along Jan Van Riebeeck Road and in Wellington were replaced with low energy consumption LED street light fittings. A total of 628 street light fittings were changed which resulted in an annual energy saving of 241,4 MWh.

Challenges faced in 2016/17:

 Staff shortages;  Aged fleet;  Inadequate Capital and Operating Budget;  Lack of office space; and  Non-responsive staff structure.

Communication to communities who are deficient in this basic service During the IDP ward roadshows, Council presents and shares the Budget, tariffs and other programmes with the community as required per legislation. The purpose of the exercise is to inform the community of all projects that may have an impact on them. At these meetings, the community is offered the opportunity to state their needs for electricity and to pose questions to the Administration.

All information gathered from community inputs at the meetings are processed into projects where viable and prioritised for submission to the Capital Budget programme.

In addition, two Top 100 consumer forum meetings are held annually to inform large consumers of tariffs and other consumer trends within the electricity supply industry. These forums also provide valuable feedback to the Municipality on the commercial and industrial sectors electrical energy needs.

The Department Electrotechnical Engineering is divided into three divisions namely:

 Operations and Maintenance: Performs functions necessary to operate and to maintain the power network;  Planning, Design and Construction: Performs functions relating to planning, design and extension of existing power network; and  Energy Management and Control: Performs functions relating to energy efficiency, electrical demand and the encouragement of alternative energy source.

Electricity Service Delivery Statistics 50,000

40,000

30,000 2014/15 20,000 2015/16 10,000 2016/17 0 Electricity (at Electricity - Electricity (< Electricity - least min. prepaid (min. min. servic prepaid (< min. service level) service level) level) service level)

Graph 9: Electricity Service delivery Statistics

Electricity Service Delivery Levels Households 2014/15 2015/16 2016/17 Description Actual Actual Actual Number Number Number Energy: (above minimum level)* Electricity (at least min. service level) 29,475 29,659 33,383 Electricity – prepaid (min. service level) 33,654 34,627 35.043 Minimum service level and above sub-total 63,129 64,286 68,426 Minimum service level and above percentage 100% 100% 100% Energy: (below minimum level)* Electricity (< min. service level) 0 0 0 Electricity – prepaid (

Households – Electricity Service Delivery Levels below the minimum 2014/15 2015/16 2016/17 Description Actual Actual Actual Number Number Number Formal Settlements Total households 59,341 62,848 68,426 Households below minimum service level 0 0 0 Proportion of households below minimum service level 0% 0% 0% Informal Settlements Total households 3,750 3,728 3,709 Households below minimum service level 3,314 3,040 2,619 Proportion households below minimum service level 88.37% 81.54% 70.61% Table 35: Households – Electricity Service Delivery Levels below the minimum *Not budgeted for per household. All monies allocated for this purpose used for sanitation in informal settlements.

Electricity Service Policy Objectives taken from IDP Strategic Objective (SO): Physical Infrastructure and Energy Efficiency Municipal Key Focus Area (KFA): 9: Energy Efficiency Annual Ref. Actual Name of Key Performance Indicator (KPI) Unit of Measurement Target no. 2016017 2016/17 Limit the electricity losses to less than 10% annually ((Total kWh purchased from Eskom – TL45 % electricity losses by 30 June. <10% 3.99% Total kWh billed by municipality) x 100 / Total kWh purchased from Eskom) Implement all the electricity capital projects % of approved Capital Budget TL46 measured quarterly in terms of the approved 96% 99.52% spent by 30 June. Electricity Capital Budget spent. Table 36: Electricity Service Policy Objectives taken from IDP

Employees: Electricity Services 2015/16 2016/17 No. of Job Level Vacancies (as No. of No. of Vacancies (T-Grades) No. of Posts a % of total Employees Employees (full-time posts) equivalents) 18 – 20 2 1 1 0 15 - 17 6 3 1 2 66.7% 12 – 14 23 11 6 5 45.5% 9 – 11 19 49 28 21 42.9% 6 – 8 36 39 21 18 46.1% 3 – 5 22 125 67 58 46.4% 1 - 2 29 3 2 1 33.3% Total 137 231 126 105 44.5% Table 37: Employees – Electricity Services

Financial Performance 2016/17: Electricity Services Rand 2015/16 2016/17 % Variance to Details Adjustments Actual Original Budget Actual Adjustments Budget Budget Total Operational Revenue (948,587,416) (1,059,720,080) (1,068,833,035) (1,075,467,786) 0.6% Expenditure Employees 57,200,901 60,985,783 61,388,940 62,803,166 2.3% Impairment losses: Fin. Assets 3,416,988 6,081,678 8,481,678 7,872,865 -7.1% Interest Paid 33,511,461 35,244,450 43,044,450 42,968,138 -0.1% Contracted Services 14,027,617 23,589,808 27,463,386 28,030,750 2.0% Depreciation and Provisions 39,814,165 47,312,380 36,577,239 37,433,283 2.3% Inventory 3,366,180 4,289,516 3,903,070 2,407,360 -38.3% Operational Cost 655,079,179 703,490,147 699,982,741 696,765,006 -0.4% Tot. Operational Expenditure 806,416,491 880,993,762 880,841,504 878,280,567 -0.2% Operating (Surplus) / deficit (142,170,926) (178,726,318) (187,991,531) (197,187,219) 4.8% Table 38: Financial Performance 2016/17 – Electricity Services

Capital Expenditure 2016/17: Electricity Services % Variance to Total Adjustments Actual Capital Projects Budget Adjustments Project Budget Expenditure Budget Value Total all 149,616,142 90,317,498 89,870,819 0.49% 90,317,498 Major projects Kliprug Substation 132/11KV New 46,182,615 41,351,326 41,351,325 0.00% 41,351,326 and COMM 8 ML Courtrai reservoir 20,000,000 34,915,895 34,915,895 0.00% 34,915,895 Welvanpas WTW & Out Buildings 33,440,817 16,961,691 16,961,691 0.00% 16,961,691

Table 39: Capital Expenditure 2016/17 – Electricity Services

ELECTRICITY SERVICES PERFORMANCE OVERALL

The rollover of funds of R 34 million was requested on capital projects for 2016/17. Electrification of informal settlements commenced and a programme is being followed. The contractor has been appointed to replace four 15 MVA transformers, 3 at Suid-End and 1 at Dalweiding substations with 20MVA transformers. Other projects completed are the replacement of sodium vapour street light fittings in Jan van Riebeeck Road and in Wellington with LED fittings. Improvement of security at substations by installation of new fencing and intrusion alarm systems. Replacement of old 11kV cables between Meulwater Substation and Ou Tuin. This is a multi-year project and will be completed during the 2017/2018 financial year.

3.4 WASTE MANAGEMENT The ultimate objective of Waste Management Services is to ensure that refuse that are collected, are managed and disposed of in a responsible and sustainable manner. Disposal facilities including transfer stations must be operated optimally in a manner to divert recoverable waste from being landfilled.

We strive to ensure that services delivered to all communities are of a high standard, that the towns are cleaned regularly and that communities take ownership of the cleaning of their wards and build strong partnerships with the Municipality.

Solid Waste Service Delivery Levels Households 2014/15 2015/16 2016/17 Description Actual Actual Actual Number Number Number Solid Waste Removal (Formal households minimum level) Removed at least once a week *43,736 *39,820 *38,486 Minimum service level and above sub-total *43,736 *39,820 *38,486 Minimum service level and above percentage 100% 100% 100% Solid Waste Removal: (Informal service – minimum level- black bag) (below minimum level) Removed at least once a week *0 *4,525 *4,798 Removed less frequently than once a week 0 0 0 Below minimum service level sub-total 0 0 0 Below minimum service level percentage 0 0 0 Total number of households 43,736 44,345 43,284 Table 40: Solid Waste Service Delivery Levels *Formal and Informal Services reported as one figure in 2014/15

Households – Solid Waste Service Delivery Levels below the minimum Households 2014/15 2015/16 2016/17 Description Actual Actual Actual Number Number Number Formal Settlements Total households *43,736 *39,820 *38,486 Households below minimum service level 0 0 0 Proportion of households below minimum service level 0.0% 0.0% 0.0% Informal Settlements Total households *0 *4,525 *4,798 Households below minimum service level 0 0 0 Proportion of households below minimum service level 0.0% 0% 0%

Table 41: Households – Solid Waste Service Delivery Levels below the minimum *Formal and Informal Services reported as one figure in 2014/15

Waste Management Service Policy Objectives taken from IDP Strategic Objective (SO): Physical Infrastructure and Energy Efficiency Municipal Key Focus Area (KFA): 12: Solid Waste Annual Ref. Actual Name of Key Performance Indicator (KPI) Unit of Measurement Target no. 2016/17 2016/17 Number of reports submitted Submit report annually on the available solid TL52 to Executive Mayoral 1 0 waste air space at existing landfill facility. Committee by 30 June. Implement all Solid Waste infrastructure % of approved Capital Budget TL51 capital projects measured quarterly in terms 96% 98.29% spent by 30 June. of the approved Capital Budget spent. Table 42: Waste Management Service Policy Objectives taken from IDP

Employees: Solid Waste Management Services 2015/16 2016/17 No. of Job Level Vacancies (as No. of No. of Vacancies (T-Grades) No. of Posts a % of total Employees Employees (full-time posts) equivalents) 18 – 20 1 1 1 0 15 - 17 2 5 2 3 60.0% 12 – 14 3 3 2 1 33.3% 9 – 11 19 23 1 22 95.6% 6 – 8 14 39 33 6 15.3% 3 – 5 35 166 127 39 23.5% 1 - 2 89 0 0 0 Total 163 237 166 71 30.0% Table 43: Employees – Solid Waste Management Services

Financial Performance 2016/17: Solid Waste Management Services Operating Revenue and Expenditure 2015/16 2016/17 % Variance Details Original Adjustments Actual Actual Adjustments Budget Budget Budget Total Operational Revenue (126,190,138) (139,452,900) (139,452,900) (140,820,624) 1.0% Expenditure: Employees 35,950,095 26,543,800 40,202,711 39,364,463 -2.0% Impairment losses on Financial Assets 10,374,036 3,944,135 10,044,135 10,039,208 -0.0% Interest Paid 3,091,932 3,251,827 3,251,827 3,656,763 12.4% Contracted Services 5,844,301 20,707,256 14,167,966 9,160,760 -35.3% Depreciation and Provision 4,784,856 5,446,829 5,446,829 4,676,258 -14.1% Inventory 1,239,544 1,841,237 2,781,237 2,279,419 -18.0% Operational Cost 62,752,147 59,428,312 48,678,574 43,633,084 -10.3% Total Operational Expenditure 124,036,912 121,163,396 124,573,279 112,809,955 -9.4% Operating (Surplus) / Deficit (2,153,226) (18,289,504) (14,879,621) (28,010,669) 21.0% Table 44: Financial Performance 2016/17 – Solid Waste Management Services

Capital Expenditure 2016/17: Waste Management Services Rand % Variance Total Adjustments Actual to Capital Projects Budget Project Budget Expenditure Adjustments Value Budget Total all 5,625,000 5,446,848 5,353,592 1.7% 5,446,848 Major projects Buildings: Cost 0 4,320,035 4,320,033 0.0% 4,320,035 Rehabilitation of the Wellington Landfill 2,500,000 674,895 674,895 0.0% 674,895 PPE CO: Machin & Equip - Acquisitions 350,000 358,665 358,665 0.0% 358,665 Table 45: Capital Expenditure 2016/17 – Solid Waste Management Services

PROJECTS AND INITIATIVES

Expanded Public Works Programme This section has registered four (4) projects on the Expanded Public Works Programme to assist in area cleaning, separation of recyclable waste and street-sweeping. Beneficiaries on these projects receive basic training in waste management.

Waste minimisation Waste minimisation initiatives, with the primary aim of diverting waste from disposal facilities (landfills), are key interventions to secure airspace and extend current landfill lifespan.

Current waste minimisation initiatives are:

 Municipal office paper recycling This project which started in June 2012, diverted a total of 26,775 kg (more than 26 tons) of office paper from landfill during the 2016/17 financial year.

 Separation at source programme The National Recycling Participation Baseline is 40%. Participation varies from 8% to 52%. Participation rate varies due to various challenges such as clear bags being taken by informal collectors, bags issued are not used for the purpose, informal collectors emptying recyclable waste into refuse bins.

Below is an illustration of the participation rate during the 2016/17 financial year.

Office paper recycling project

2500

2000

1500

1000 Weight (in kg)(in Weight

500

0 16/07 16/08 16/09 16/10 16/11 16/12 17/01 17/02 17/03 17/04 17/05 17/06

Graph 10: Office paper recycling project

Percentage waste recycling participation Beat 2 Beat 3 Beat 4 Beat 5 Beat 1 Months (Ward (Ward (Ward (Ward (Ward 2) 4&15) 17&19) 22&24) 22&23) April 2017 29,87% 50,50% 22,48% 8,36% 9,02% May 2017 31,97% 52,84% 24,49% 9,93% 8,80% June 2017 36,13% 50,77% 28,41% 24,58% 18,32%

Table 46: Percentage waste recycling participation

Graph 11: Percentage waste recycling participation

Awareness and Education One of the goals in the Integrated Waste Management Plan (IWMP) is to educate, strengthen capacity and raise awareness in integrated waste management. This includes that the public will be informed and continually made aware of the impacts of waste on the environment.

The Solid Waste Management Section has implemented a schools waste awareness and minimisation programme, which is growing continually as there is an increasing interest in participation in the programme. A total of 18 schools were visited to initiate recyclable collection projects and clean-ups.

Swop-shops The first swop-shop was launched in Plankies, New Rest. The basis of this initiative is that children collect recyclables and exchange it for stationery, toiletries and other non-perishable goods. Exchange of goods work on a point and coupon system, which is managed by external role-players and the community.

Future Work Envisaged

Capital/Infrastructure Municipalities are compelled to prioritise the closure and rehabilitation of redundant waste disposal facilities. In the case of Drakenstein, it will be a multi-year project which will commence in the 2016/17 financial year. Works will include the rehabilitation, capping and remediation of the DM closed landfill sites namely; Gouda, Saron, and Hermon. Upgrading of the stormwater management system at the waste disposal facility and upgrading of Paarl Refuse Transfer Station.

Operational Due to the rapid decrease in available airspace, it is imperative that more vigorous waste diversion will have to occur. This should include the following:

 Extension of waste minimisation initiatives;  Increased awareness and education; and  Implementation of IWMP action plans – extension of swop-shop initiatives.

WASTE MANAGEMENT SERVICES PERFORMANCE OVERALL

The ultimate objective of Waste Management Services is to ensure that all such services delivered to all communities are of a high standard that the towns are cleaned regularly and that communities take ownership of the cleaning of their wards and build strong partnerships with the Municipality.

During 2016/17 the following were achieved:

 Formal residential refuse collection – 38,486;  Informal refuse collection service points – 4,798;  Roads cleaned – 1,947.16 km (mostly manually) ; and  Unemployed in Expanded Public Works Programme – average of 400 persons per 3 months period.

The emphasis was mainly on the eradication of illegal dumping, which not only impacts adversely on wards but also has a huge impact on the Municipality’s budget. This money could have been utilised for important projects that could change the wellbeing of our people.

3.5 HOUSING

INTRODUCTION TO HOUSING

The 2016/17 financial year was a year of highs and lows.

In total, 99 of the targeted 150 houses were handed over to beneficiaries, translating into a 66% success rate. Various factors contributed to not achieving the target. These include:

 Structures in the way of construction of both civil as well as top structures at Lantana prohibited the completion of the last 41 houses;  Delays in the settlement of contractual disputes between the Municipality and the contractor at Lantana project meant that no houses could be constructed during the year;  Due to a lack of relocation space for the overflow and borders at both Fairyland and Siyahlala to open up space for the construction of houses, both projects had to be temporarily suspended until such time that the relocation off site can take place. A potential relocation site has been identified but it may require going through a revised environmental impact assessment process. Awaiting a response from the Provincial Department of Environmental Affairs and Development Planning. About 80 top structures need to be built on the area where the overflow of shacks is located;  A new contractor appointed at Kingston could not deliver all the houses due to various delays including structures in the way of construction, boundary encroachments (that needed to be resolved before houses can be handed over to beneficiaries); and  The Vlakkeland catalytic project (which will cater for 2,550 mix typology housing opportunities) could also not be rolled out due to high tender prices. A second round of

tenders therefor had to be requested. At the end of the financial year major strides have been made in the appointment of contractors to start with the internal services and it is anticipated that a contractor will be on site early in the new financial year.

No sites were serviced during the financial year.

Despite not delivering on targets for reasons outlined above, other achievements / important events during the year include:

 Submission of funding applications for various projects to commence with the planning thereof. Several projects has been approved under the Upgrade of Informal Settlement Support Program (UISSP) and the Integrated Residential Development Program (IRDP) and planning will commence in all earnest during 2017/18;  Implementation of a GAP development on Erf 16161 by ASLA. On completion, a total of 2,078 housing opportunities will be created for the GAP and social rental market. The Municipality and the Provincial Department of Human Settlements are partners in the development. Civils commenced in the fourth quarter of 2016;  Title deeds were also issued to the respective beneficiaries of Council’s housing projects. This is an ongoing process. Funding has also been secured to assist with the fast tracking of the title deeds of beneficiaries of historical projects;  Declaration of Drakenstein Municipality as a restructuring zone. The “positive” implication hereof is that social housing (which is a rental housing opportunity for the low to middle income market) can be developed in well located areas within the municipal jurisdiction;  Successful Relocation of 23 families from the Nieuwehoop site at Simondium to an adjacent site to the Simondium Informal Settlement which paved the way for the construction of the Simondium Community Hall which is in process of being constructed;  Upgrade of rental stock including replacing defective staircases, replacement of broken doors and frames, windows and window frames and painting and water-proofing of outside walls. The tiling of floors in the rental units has also been introduced as part of the upgrade process since this was not provided for when these flats were originally constructed; and  The services of Siyakhana Consulting was procured to support the division with the planning and preparation of a Rural Development Strategy. A forum (as a subcommittee of the IDP Representative Forum) has been established for consultation and support with the implementation of the strategy to ensure that the objectives and plans for rural development are met in Drakenstein. The final draft strategy was submitted to the Executive Mayor on 29 June 2017.

The Drakenstein Municipality consisted of 31 wards of which 9 are considered as rural. In general, in order to meet the basic needs of rural and farming communities, municipalities should:

 Establish an environment (whether directly or indirectly) that will contribute and / or result in transformed rural communities, in a sustainable manner (facilitation processes);  Actively engage with spheres of government as partners, stakeholders and rural communities; and  Co-operate and align policies and programmes.

It is evident from the IDP that Drakenstein Municipality acknowledges rural development as a transversal concept that engages agencies across the public and private sectors. It requires of all agencies and spheres of government, state-owned enterprises and the private sector to contribute through their respective areas of responsibility to help address the increasing challenge of rural poverty and development. In this regard, municipalities have to ensure effective basic services provisioning, leveraging municipal spending to create local jobs, and facilitating local economic development for all, including rural communities in their areas of jurisdiction in order to affect transformed rural communities and areas. Continuous liaison and co-operation intra departmentally and with other stakeholders on critical matters regarding rural development contribute toward improving service delivery outcomes.

Human Settlement / Housing challenges:

 Despite having successes in issuing title deeds, the historical backlog still poses challenges to the Municipality;  Incomplete projects that need to be concluded;  Continuous land invasions, illegal erection of shacks and concerns of backyarders;  Lack of relocation land for overflow of informal settlements (this is preventing a number of informal settlement upgrade projects to be completed);  Evictions and the continuous pressure put on the Municipality to provide emergency housing;  The state of basic services due to continuous vandalism and theft within informal settlements is a major area of concern;  Lack of infrastructure in certain instances prevents / delays project implementation. This can also be linked to the limited funding available to meet the required infrastructure needs; and  The need to upgrade “old” Municipal rental stock, especially the apartment blocks in primarily Paarl East. The cost to upgrade is astronomical and given budget constraints, coupled with low rental income, this is difficult to realise.

Housing Demand Database Number of people on the % Housing waiting list Year Housing Demand Database increase /(decrease) 2014/15 41,475 1.9 2015/16 40,457 (2.5) 2016/17 40,977 1.3 Table 47: Housing Demand Database

Housing Service Policy Objectives taken from IDP Strategic Objective (SO): Social and Community Development (Municipal KPA) Municipal Key Focus Area (KFA): Sustainable Human Settlements (housing) Annual Ref. Actual Name of Key Performance Indicator (KPI) Unit of Measurement Target no. 2016/17 2016/17 Number of housing Provide houses in terms of the Integrated TL31 opportunities provided by 30 150 99 Human Settlement Plan. June. Table 48: Housing Service Policy Objectives taken from IDP

Employees: Housing Services 2015/16 2016/17 No. of Job Level No. of No. of Vacancies (full- Vacancies (as a (T-Grades) No. of Posts Employees Employees time % of total posts) equivalents) 18 – 20 3 4 2 2 50.0% 15 - 17 3 9 4 5 55.5% 12 – 14 5 10 4 6 60.0% 9 – 11 27 35 20 15 42.8% 6 – 8 12 16 13 3 18.7% 3 – 5 2 31 31 0 1 - 2 27 0 0 0 Total 79 105 74 31 29.5% Table 49: Employees – Housing Services

Financial Performance 2016/17: Housing Services Rand 2015/16 2016/17 % Variance to Details Original Adjustments Actual Actual Adjustments Budget Budget Budget Total Operational Revenue (52,727,531) (73,436,056) (48,836,056) (43,214,135) -11.5% Expenditure: Employees 17,239,695 18,805,362 19,343,358 19,181,536 -0.8% Impairment losses on Financial Assets 152,492 3,375,686 10,882,828 8,524,776 -21.6% Interest Paid 2,185,531 2,298,551 2,598,551 2,584,933 -0.5% Contracted Services 11,681,665 9,893,889 16,257,615 14,195,832 -12.6% Depreciation and Provisions 20,810,273 11,098,450 19,948,450 20,501,357 2.7% Inventory 211,782 220,851 178,611 117,025 -34.4% Operational Cost 57,174,293 76,271,480 51,990,538 48,043,771 -7.5% Total Operational Expenditure 109,455,730 121,964,269 121,199,951 113,149,229 -6.6% Operating (Surplus) / Deficit 56,728,198 48,528,213 72,363,895 69,935,095 -3.3% Table 50: Financial Performance 2016/17 – Housing Services

Capital Expenditure 2016/17: Housing Services Rand % Variance to Adjustments Actual Total Project Capital Projects Budget Adjustments Budget Expenditure Value Budget Total all 1,600,000 1,952,634 1,952,633 0.00% 1,952,634 Major projects Water Meters and Connections Amstelhof 0 218,771 218,771 0.00% 218,771 Upgrading Own Rental Stock 1,600,000 1,349,772 1,349,771 0.00% 1,349,772 C/O buildings: erection of new offices 0 384,091 384,091 0.00% 384,091

Table 51: Capital Expenditure 2016/17 – Housing Services

COMMENT ON THE PERFORMANCE OF HOUSING SERVICES OVERALL

The Department of Human Settlements delivered 99 housing opportunities out of the targeted 150 for the financial year, translating into a 66% success rate. This is far below the consistent 80% plus delivery rate of past years. The under-performance can be attributed to a range of factors as described above. Non delivery targets were also achieved. In this instance:

 Declaration of Drakenstein as a restructuring zone, paving the way to implement social housing;  Relocation of 23 families from the Nieuwehoop site at Simondium paved the way for the construction of the Simondium Community Hall;  The completion of the final draft Rural Development Strategy; and  Approval of several projects to undertake planning and feasibility studies.

Therefore, measured by the above factors and achievements, the housing section still facilitated conditions that will ensure that delivery going forward will improve in the 2017/18 and outer financial years to come.

3.6 FREE BASIC SERVICES AND INDIGENT SUPPORT

INTRODUCTION TO FREE BASIC SERVICES AND INDIGENT SUPPORT The Indigent Subsidy Scheme is based on the prescripts of the Indigent Policy of Council and is funded from the Equitable Share Grant from the national fiscus. The grant is administered to qualifying consumers who are unemployed, pensioners or consumers earning salaries less than twice the government pensioners’ grant. All consumers of the Drakenstein Municipality receive 10 kℓ free water per month and the indigent qualifying consumers receive 100 kWh free electricity per month, free refuse removal, free sanitation and a rebate on their monthly property rates account.

Qualifying indigent households are registered for a financial year and their registration authomatically expires at financial year-end. During April of each year an indigent awareness campaign and indigent drive is launched when all indigent households registered on the indigent register are reminded to re-register for the new financial year. Re-registration application forms are delivered at their homes and assistance is given to people who cannot read or write.

Free Basic Household Services 20000 Water (10 kilolitres per household per month) 15000 Sanitation (free minimum level 10000 service) Electricity/other energy (100 kWh Households 5000 per household per month) Refuse (removed at least once a 0 week) 2014/2015 2015/2016 2016/2017

Graph 12: Free basic household services

Households earning less than R 3,300 per month Free Basic Free Basic Free Basic Water Free Basic Refuse Year Total Sanitation Electricity Access % Access % Access % Access % 2014/15 64,848 15,095 23.3 15,095 23.3 15,186 23.4 15,095 23.3 2015/16 71,686 17,971 25.1 17,971 25.1 15,452 21.6 17,971 25.1 2016/17 71,686 18,373 25.6 18,373 25.6 17,681 24.7 18,373 25.6 Table 52: Free Basic Services to low-income households

Financial Performance 2016/17: Cost to Municipality of Free Basic Services delivered R’000 2015/16 2016/17 Variance to Services Delivered Adjustments Actual Budget Actual Adjustments Budget Budget Water 21,075 22,972 22,972 18,217 -20.7% Wastewater (Sanitation) 9,234 10,619 10,619 13,881 30.7% Electricity 30,369 31,623 31,623 24,676 -21.9% Waste Management (Solid Waste) 24,875 27,289 27,289 30,920 13.3% Rates and Rentals 11,292 13,737 13,737 18,546 35% Totals 96,845 106,240 106,240 106,240 0.0% Table 53: Financial Performance 2016/17 – Cost to Municipality of Free Basic Services delivered

Free Basic Service Policy Objectives taken from IDP Strategic Objective (SO): Social and Community Development (Municipal KPA) Municipal Key Focus Area (KFA): Poverty Alleviation Name of Key Annual Ref. Actual Performance Unit of Measurement Target no. 2016/17 Indicator (KPI) 2016/17 Report by 30 June on the % of households earning less (NKPI) Provision of TL52 than 2 x social grant plus 25% per month with access to 1 1 Free Basic Services. free basic services. Update Indigent % of all qualifying indigent applications processed by 30 TL51 99% 100% Register. June. Table 54: Free Basic Service Policy Objectives taken from IDP

COMMENT ON FREE BASIC SERVICES AND INDIGENT SUPPORT The Indigent Policy of Council determines that a household (main breadwinners of a household) residing on an erf, earning a combined gross income of equal or less than twice the monthly government social grant paid to old-age pensioners or disabled persons, plus 25%, qualifies for the indigent subsidy. The policy determines that the qualifying persons are eligible for the following free basic services per month: 10 kℓ free water, 100 kWh free electricity, sanitation consumption, one refuse removal bin service and property rates to the extent of the value of the property. The 10 kℓ free water mentioned above is provided to all the households in the Drakenstein Municipal Area.

In the 2016/17 financial year 18,373 indigent households were provided with free water, sanitation and refuse removal services. Free electricity were provided to 17,681 indigent households. The indigent households that were physically provided with free basic services far exceed the targets set by the Municipality, which means that more people did benefit from this indigent subsidy. Council also approved a Writing-Off of Irrecoverable Debt Policy in February 2013, which has enabled indigent consumers to participate in the writing-off of debt which they are unable to pay. The total Equitable Share Grant received by the Municipality for

the 2016/17 financial year amounted to R 106,240,000 and it was used to render this free basic services.

COMPONENT B: ROAD TRANSPORT

INTRODUCTION TO ROAD TRANSPORT

Drakenstein Municipality does not operate a public transport system. The main method for public transport at present is the minibus taxi services operated by a number of independent operators.

The Cape Winelands District Municipality initiated the compilation of an Integrated Public Transport Network for the Cape Winelands District, of which Drakenstein forms part. This initiative was implemented in the 2014/2015 financial year with the first phase completed in 2016/2017. Following from this project, consideration will be given to the establishment of a public transport system for the Drakenstein Municipal Area by the Drakenstein Municipality.

3.7 ROADS

INTRODUCTION TO ROADS

The basic functions of the Roads Section are to upgrade existing roads and streets, extend the network and maintain the existing network.

The upgrade of existing roads is planned in terms of priorities as determined in the IDP, through departmental planning and by the Municipality. The pace and extent of implementation are determined by the budget allocated by both the provincial government (80% of cost contribution) and the Municipality (20% of cost contribution) in respect of main proclaimed roads, and Municipal streets (100% internal funding). Achievements for the past financial year include the start of construction of the upgrade of Berg River Boulevard North to divided four-lane road, with an estimated completion date of 18 July 2018 at a contract value of R 102.3 million. The final planning for the upgrading of Oosbosch Street between Berg River Boulevard is complete. Construction of the upgrading of Oosbosch Street is expected to commence during 2018, dependant on budgetary provision.

Extensions to the road network are planned in accordance with the Integrated Transportation Plan, addressing both provincial and municipal roads. Planning for the upgrade of various sections of road is under way, but funding for construction will need to be sourced. The Integrated Transportation Plan has been, with the revised Pavement Management System expected to be completed during 2017.

Gravel Road Infrastructure Kilometres New gravel roads Gravel roads Gravel roads Year Total gravel roads constructed upgraded to tar graded/maintained 2014/15 43.75 0 0.0 43.75 2015/16 43.75 0 2.5 41.25 2016/17 41.25 0 2.0 39.25 Table 55: Gravel Road Infrastructure

Asphalted Road Infrastructure Kilometres Existing asphalt Existing asphalt Total asphalted New asphalt Asphalt roads Year roads re- roads re- roads roads maintained asphalted sheeted 2014/15 507.77 0 2.38 32.69 507.77 2015/16 507.77 0 0.65 22.30 507.77 2016/17 507.77 0 0.30 22.50 507.77 Table 56: Asphalted Road Infrastructure

Cost of Construction/Maintenance R’000 Gravel Tar Year New Gravel-Tar Maintained New Re-worked Maintained 2014/15 0 0 794 0 20,367 7,648 2015/16 0 2,000 833 0 16,731 5,338 2016/17 0 8,000 882 0 17,788 5,300 Table 57: Cost of Construction/Maintenance

Road Infrastructure Costs 25,000,000 Gravel - New 20,000,000 Gravel - Tar 15,000,000 Gravel - Maintained 10,000,000 Tar - New RandValue 5,000,000 Tar - Re-worked - Tar - Maintained 2014/15 2015/16 2016/17

Graph 13: Road Infrastructure Costs

Road Service Policy Objectives taken from IDP Strategic Objective (SO): Physical Infrastructure and Energy Efficiency Municipal Key Focus Area (KFA): Roads and Stormwater Annual Ref. Name of Key Performance Indicator Actual Unit of Measurement Target no. (KPI) 2016/17 2016/17 Implement all the Roads, storm water infrastructure capital projects measured % of approved Capital Budget TL47 96% 99.96% quarterly in terms of the approved spent by 30 June. Capital Budget spent. Table 58: Road Service Policy Objectives taken from IDP

Employees: Road Services 2015/16 2016/17 No. of Job Level Vacancies (as No. of No. of Vacancies (T-Grades) No. of Posts a % of total Employees Employees (full-time posts) equivalents) 18 – 20 0 0 0 0 15 – 17 2 3 1 2 66.7% 12 – 14 5 5 2 3 60.0% 9 – 11 7 8 6 2 25.0% 6 – 8 18 34 18 16 47.1% 3 – 5 36 49 36 13 26.6% 1 – 2 124 151 97 54 35.8% Total 192 250 160 90 36.0% Table 59: Employees – Road Services

Financial Performance 2016/17: Road Services Rand 2015/16 2016/17 % Variance to Details Adjustments Actual Original Budget Actual Adjustments Budget Budget Total Operational Revenue (15,102,852) (19,129,093) (20,392,093) (20,190,792) -0.9% Expenditure Employees 24,556,294 25,881,364 27,086,759 27,127,285 0.1% Impairment losses on Financial Assets 0 0 2,930,000 0 -100.0% Interest Paid 12,986,695 13,657,668 15,257,668 15,359,306 0.6% Contracted Services 20,609,240 22,721,623 20,275,013 20,593,644 1.5% Depreciation and Provisions 35,812,304 38,672,023 41,557,507 41,832,617 0.6% Inventory 1,399,750 1,772,960 1,477,840 1,314,636 -11.0% Operational Cost 11,473,644 22,966,311 29,084,586 28,287,113 -2.7% Total Operational Expenditure 106,837,926 125,671,949 137,669,373 134,514,601 -2.2% Operating (Surplus) / Deficit 91,735,074 106,542,856 117,277,280 114,323,809 -2.5% Table 60: Financial Performance 2016/17 – Road Services

Capital Expenditure 2016/17: Road Services Rand % Variance to Adjustments Actual Total Project Capital Projects Budget Adjustment Budget Expenditure Value Budget Total all 57,827,542 58,763,145 58,750,915 0.02% 58,763,145 Major projects Proclaimed and Main Roads Upgrades 10,488,068 11,402,686 11,402,686 0.00% 11,402,686 Upgrading of Brb North 15,789,474 20,335,556 20,335,556 0.00% 20,335,556 Upgrading Of Gravel to Paved Roads (Saron) 7,000,000 8,859,200 8,859,200 0.00% 8,859,200 Table 61: Capital Expenditure 2016/17 – Road Services

THE PERFORMANCE OF ROAD SERVICES OVERALL

The main objectives of the Roads Section are to upgrade existing gravel streets to paved standard; extend the existing infrastructure in accordance with the Transportation Master Plan (TMP) and development needs within the municipal area; and maintain roads and streets in accordance with

the Pavement Management System (PMS).

Extensions to the major road network are planned in accordance with the TMP as well as mobility criteria, especially regarding provincial main roads. The TMP plan has been updated and will be completed for implementation in 2017/18. The work implemented or completed during the year comprised the start of construction for upgrading of Bergrivier Boulevard North to a divided four lane standard, as well as the preliminary design of the upgrading of Oosbosch Street to the same standard. The resealing of approximately 22 km of streets was completed providing for preventative maintenance of these streets.

In total some 32 km of provincial roads are situated in the Drakenstein residential area. Most of these are to be maintained by the Municipality on a 20/80 contribution rate respectively by the Municipality and provincial government. However, with a dire shortage of funds for maintenance

from government, the Drakenstein Municipality provides more than this share in order to maintain acceptable levels of service to its residents.

3.8 STORMWATER DRAINAGE

INTRODUCTION TO STORMWATER DRAINAGE

The priorities of the Stormwater Section are to upgrade and maintain existing services as well as to install new systems as required in order to ensure the efficient and effective removal of stormwater. This section performed well in the reporting period.

The systems in Drakenstein are at present capable of removing stormwater originating from a 1:2 to 1:5 flood situation. Some systems are in need of upgrading, being of inferior quality and condition, and are upgraded as budget permits. It must be noted that higher intensity flood situations are expected to increase in frequency due to climate change. This unfortunately leads to the exposing of vulnerable groups to high risk situations.

This section holds itself available at all times and is proactive in dealing with crisis situations as they arise.

Capital projects in this sector are focused on the upgrading of existing systems as the need arises and funding becomes available. In-situ camera inspections are undertaken and the relining process of substandard pipes executed where possible. Where lining of pipes is no

longer viable, a replacement programme is followed within budgetary constraints. At present it is estimated that approximately R 230 million is required to address all problem areas in Drakenstein.

In order to provide for the proper handling of stormwater in all areas of development, the stormwater master plans for the various catchment areas is required urgently, including a re- determination of the relative flood lines.

Maintenance is a major problem, particularly with regard to the cleaning of the systems. The continual dumping of refuse and pollutants into the systems has not abated and causes regular blockages. The section has increased the frequency of cleaning to quarterly in order to contain pollution. This is becoming increasingly difficult because of perpetually having to attend to particular areas as well as staffing and budget constraints.

Informal settlements as well as all residents are assisted mainly by providing informal surface removal methods and rendering support during rainy periods through the provision of materials and sandbags to mitigate the effects of flooding.

Stormwater Infrastructure Kilometres Stormwater Stormwater Total Stormwater New Stormwater Year measures measures measures measures upgraded maintained 2014/15 354.12 1.147 0.604 354.12 2015/16 355.27 0.000 0.000 355.27 2016/17 355.27 0.000 6.000 355.27 Table 62: Stormwater Infrastructure

Cost of Construction/Maintenance R’000 Stormwater Measures Year New Upgraded Maintained 2014/15 2,390 1,760 1,980 2015/16 - 6,000 2,380 2016/17 - 7,700 2,200 Table 63: Cost of Construction/Maintenance

Stormwater Infrastructure Costs 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 New 4,000,000 Upgraded 3,000,000 2,000,000 Maintained 1,000,000 - 2014/15 2015/16 2016/17

Graph 14: Stormwater infrastructure costs

Stormwater Policy Objectives taken from IDP Strategic Objective (SO): Physical Infrastructure and Energy Efficiency (Municipal KPA) Municipal Key Focus Area (KFA): Roads and Stormwater Infrastructure Annual Ref. Name of Key Performance Actual Unit of Measurement Target No. Indicator (KPI) 2016/17 2016/17 Implement all the Roads, storm water infrastructure capital % of approved Capital Budget TL39 projects measured quarterly in 96% 97.7% spent by 30 June. terms of the approved Capital Budget spent. Table 64: Stormwater Policy Objectives taken from IDP

Employees: Stormwater Services* 2015/16 2016017 No. of Job Level % Vacancies No. of No. of Vacancies (full- (T-Grades) No. of Posts (as a % of total Employees Employees time posts) equivalents) 18 – 20 * * * * * 15 – 17 * * * * * 12 – 14 * * * * * 9 – 11 * * * * * 6 – 8 * * * * * 3 – 5 * * * * * 1 – 2 * * * * * Total * * * * * Table 65: Employees – Stormwater Services * Note: Organogram not separated into Roads and Stormwater (Refer to Roads Services)

Financial Performance 2016/17: Stormwater Services* R 2015/16 2016/17 % Variance to Details Original Adjustments Actual Actual Adjustments Budget Budget Budget Total Operational Revenue * * * * * Expenditure: * * * * * Employees * * * * * Repairs and Maintenance * * * * * Depreciation and Provisions * * * * * Other * * * * * Total Operational Expenditure * * * * * Operating (Surplus) / Deficit * * * * * Table 66: Financial Performance 2016/17 – Stormwater Services *Note: Financial information is not broken down into these groups with implementation of new cost centres. Information included under Roads Services.

Capital Expenditure 2016/17: Stormwater Services Rand % Variance to Adjustments Actual Total Project Capital Projects Budget Adjustments Budget Expenditure Value Budget Total all 7,500,000 9,161,033 9,144,244 0.18% 9,161,033 Major projects Refurbish Storm Water Systems 7,500,000 9,161,033 9,144,244 0.18% 9,161,033 Table 67: Capital Expenditure 2016/17 – Stormwater Services

COMMENT ON THE PERFORMANCE OF STORMWATER SERVICES OVERALL

The priorities of the Stormwater Section are to upgrade existing services, install new systems as required and maintain existing services for efficient and effective stormwater removal. The systems in Drakenstein are at present capable of removing stormwater originating from a 1:2 to 1:5 flood situation.

Generally, more regular flooding is experienced due to the tendency of weather patterns changing to more intense rainfall over shorter periods of time. However, as a result of increased maintenance, the

incidence has reduced.

For the 2016/17 financial year 166 covers and frames where replaced, 153 concrete slabs replaced, 433

stormwater blockages opened, 108 manhole structures repaired, 6,163 manholes cleaned and 217 kerb inlets repaired.

COMPONENT C: PLANNING AND ECONOMIC DEVELOPMENT

INTRODUCTION TO PLANNING AND ECONOMIC DEVELOPMENT

The Planning and Economic Development Directorate includes Building Control, Valuations, Land Surveys, Land Use Management, Spatial Planning, Heritage, Environmental Development and Economic Development. Directorate is responsible for sustainable and pro-active planning and compliance monitoring of the natural and built environment. The Directorate also facilitates physical, social and economic development and growth.

3.9 PLANNING

Division: Land Survey and Valuations

Section: Land Survey The purpose of the Land Survey Section is to provide a technical support service regarding land-related matters, to provide for the orderly and efficient development of land and to ensure proper control in respect of the subdivision of land within the urban environment. The section is responsible for the processing of land development applications, e.g. urban land subdivisions, removal of restrictive title conditions prohibiting land subdivision, encroachments, road and public place closures, scrutinising of building plans in respect of property and cadastral information, providing land information to assist the public, recommending whether or not rates clearance for the transfer of erven and farms within the municipal area may be issued, assisting other departments with land survey tasks and the verification of municipal property boundaries using land survey methods. The number of urban subdivision applications processed is set out in Table 66.

Section: Valuations The purpose of the Valuation Section is to establish and maintain a reliable property valuation roll with accurate valuations, as the basis for levying municipal property taxes. The section is responsible for the appointment of a service provider for the compilation of the General Valuation (GV) Roll every four years and Supplementary Valuation (SV) Rolls at least bi- annually, except for the year during which the new General Valuation Roll is implemented, when only one SV is undertaken.

A service provider, for the compilation of the General Valuation Roll 2016, was appointed during the 2015/16 financial year. The General Valuation Roll 2016 was finalised during the current financial year. The GV 2016 will be implemented on 1 July 2017 and be valid until 30 June 2021.

During 2016/17, one (1) supplementary valuation roll was finalised, namely the Seventh SV 2012. Results of the supplementary valuation is as follows:

Number of appeals Number of Number of referred to the Supplementary Valuation properties valued objections received Valuation Appeal Board 7th Supplementary Valuation 1,088 39 18 Table 68: Valuation Roll

Division: Spatial Planning The Spatial Planning Division consists of a Spatial Planning Section, a Heritage Section and a GIS Section.

Spatial Planning Section The purpose of spatial planning is to provide a framework for the spatial vision and form of Drakenstein Municipality. The Spatial Development Framework (SDF) provides guidelines for future development and growth of the Municipal Area in a predictable manner to enhance the quality of life of its residents.

Heritage Section The purpose of heritage is to identify, protect and manage the heritage (built form) of the Drakenstein Municipality.

GIS Section The main purpose of the GIS Section is to provide and maintain Geographic Information System services and products for the directorate, provide GIS related guidance and support to managers and staff and to take an active role in the development and maintenance of organisational Geographic Information System services.

Division: Land Use Planning The purpose of land use planning is to enhance the living quality of all residents within the Drakenstein Municipal Area and to cater for sustainable progression/growth of the Municipal Area as a whole, through creating an environment that facilitates orderly and predictable development throughout the entire Drakenstein Municipal Area. The Land Use Planning Division is responsible for the processing of applications for land use changes (by means of rezoning, consent uses, departures, temporary departures, amendment of conditions of approval and removal of restrictive title conditions), township establishment and farm subdivision applications, as well as the scrutinising of building plans for compliance with zoning parameters and attending to illegal land uses. The number of land use planning applications processed is set out in Table 67.

Due to the promulgation of new national and provincial planning legislation, the Municipality developed and adopted its own Bylaw on Municipal Land Use Planning, in terms whereof land use planning is regulated at Municipal level. In terms of the new delegation system, which is in line with national and provincial legislation, all Municipal land use planning applications are either decided by an authorised official or a Municipal Planning Tribunal, with a general right

of appeal to the Executive Mayor being the Appeal Authority. The Bylaw was implemented on 1 February 2016 and all new applications are therefore dealt with in terms hereof.

Division: Building Control The main purpose of Building Control is to process and assess new building plan applications, to monitor building work, to act against unauthorised building activities and to promote orderly building development that will benefit and promote the living environment of the citizens of the Municipal Area.

The unit during the previous financial year commenced with the review of the current electronic building plan application system in order to improve on the efficiency and effectiveness of the current system. The amended system was finalised at the end of June 2017, where-after the system will be implemented during the 2017/18 financial year.

A total of 1,839 inspections, consisting amongst others of beacon inspections, commencement inspections, progress inspections, completion inspections and complaints inspections, were undertaken by the building inspectors during the financial year.

A total of 1,667 building plan applications were received during the financial year. In total 1,244 building plan approvals were issued and 423 building plan applications were at different stages of evaluation, but not finalised at year end. The estimated building cost of the approved building plan applications amounts to R 2.2 billion.

Applications for Land Use Development Formalisation of Rezoning Built Environment Detail Townships 2015/16 2016/17 2015/16 2016/17 2015/16 2016/17 Planning applications received 88 67 78 85 1,629 1,667 Determination made in year of receipt 41 62 26 56 918 1,244 Determination made in following year - - - - 188 139 Applications withdrawn ------Applications outstanding at year end 47 5 52 29 523 423 Table 69: Applications for Land Use Development 1 Formalisation of Townships includes farm subdivisions, subdivision of urban erven and consolidations. Rezoning includes consent uses, departures, temporary departures, amendment of conditions of approval and the removal of restrictive title conditions.

Planning Policy Objectives taken from IDP Strategic Objective (SO): Services and Customer Care (Municipal KPA) Municipal Key Focus Area (KFA): Building Regulations and Municipal Planning Annual Ref. Name of Key Performance Indicator Actual Unit of Measurement Target no. (KPI) 2016/17 2016/17 Development of new Zoning Scheme Draft Zoning Scheme tabled for TL23 1 1 for Drakenstein. public comment. Table 70: Planning Policy Objectives taken from IDP

Employees: Planning Services 2015/16 2016/17 No. of Job Level No. of No. of Vacancies Vacancies (as a (T-Grades) No. of Posts Employees Employees (full-time % of total posts) equivalents) 18 – 20 4 4 3 1 25.0% 15 – 17 10 14 11 3 21.4% 12 – 14 18 26 19 7 26.9% 9 – 11 13 15 10 5 33.3% 6 – 8 4 4 2 2 50.0% 3 – 5 3 0 0 0 1 – 2 0 0 0 0 Total 52 63 45 18 28.6% Table 71: Employees – Planning Services

Financial Performance 2016/17: Planning Services Rand 2015/16 2016/17 % Variance to Details Original Adjustments Actual Actual Adjustments Budget Budget Budget Total Operational Revenue (6,439,331) (7,212,067) (7,711,067) (6,212,500) -19.4% Expenditure: Employees 19,679,489 18,891,470 18,798,752 19,565,868 4.0% Impairment Losses: Fin. Assets 0 0 0 0 0.0% Interest Paid 0 0 0 0 0.0% Contracted Services 7,085,150 9,326,172 9,684,253 8,421,841 -13.0% Depreciation and Provisions 183,491 731,887 731,887 123,578 -83.1% Inventory 532,618 305,267 462,291 331,571 -28.2% Operational Cost 602,756 1,505,846 2,040,245 1,172,738 -42.5% Total Operational Expenditure 28,083,504 30,760,642 31,717,428 29,615,595 -6.6% Operating (Surplus) / Deficit 21,644,173 23,548,575 24,006,361 23,403,095 -2.5% Table 72: Financial Performance 2016/17 – Planning Services

Capital Expenditure 2016/17: Planning Services Rand 2016/17 % Variance to Capital Projects Adjustments Actual Total Project Budget Adjustments Budget Expenditure Value Budget Total all 0 811,985 804,061 0.98% 811,985 Major projects Collaborator building plan 0 674,000 666,076 1.18% 674,000 application module Table 73: Capital Expenditure 2016/17 – Planning Services

100

Operational Projects 2016/17

Spatial Development Framework The Drakenstein Municipal Spatial Development Framework (SDF) was approved by Council in 2015. The annual SDF review process, as a core component of the IDP in terms of Section 26(e) of the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000), was initiated by the Spatial Planning Section in August 2016. The annual review of the SDF was approved by Council on 31 May 2017, as the spatial core component of the IDP, with the main priority being to guide new investment, give effect to the principles as stated in the IDP and to identify priority areas for strategic intervention.

The SDF Vision is as follows: ‘’The Drakenstein Municipality located in the heart of the Winelands, and building on its assets – its dramatic scenic landscape, precious natural and cultural heritage, quality educational institutions and sporting facilities, thriving agricultural economy and unrivalled access to the regional access and logistics networks – will be “A city of excellence” for all its residents.’’

Arboretum Urban Design Framework The Arboretum is seen as one of Drakenstein’s most significant assets, which could hold enormous economic benefits / potential that need to be exploited. The Spatial Planning Division was tasked to compile an Urban Design Framework for the Paarl Arboretum and the document was approved by the Mayoral Committee on 25 June 2017.

The Local Spatial Development Framework comprising of the Paarl Central Business District (CBD), The Waterfront Site, The Arboretum and Adjacent Erven, The Hugenote Station Area and The Klein Drakenstein Road Area The Spatial Planning Section initiated a Local Spatial Development Framework (LSDF) on 25 November 2016. The framework would comprise the Paarl CBD, the Waterfront Site, the Arboretum and adjacent erven, the Huguenot Station and the Klein Drakenstein Road areas. The completion period would be 20 months. The purpose of the framework is to provide detailed spatial planning guidelines and identify focus areas and priorities for the increased functioning, integration, revitalization and beautification of the area.

Acquisition of Development Rights for the extension of the existing Wellington Industrial Park The approved strategic environmental assessment identified additional land for the expansion of the existing Wellington Industrial Park as well as areas for conservation purposes. Specialist studies have been initiated in the 2015/16 and 2016/17 financial years to be used as informants to support the rezoning of the land for industrial purposes. Specialist studies include an urban design framework, landscape plan, engineering studies, traffic impact assessment, heritage studies and environmental impact assessment.

101

Student Accommodation Policy The project was identified in the reviewed Drakenstein SDF (2015) and the need for such a policy was also identified due to the influx of student accommodation establishments / facilities into residential suburbs (e.g. conversion of single residential dwelling into student houses).

The goal of the policy is to provide better management of current and future student accommodation establishments / facilities within the Drakenstein Municipal Area. The policy was approved by Council on 29 March 2017.

Policy for the Naming and Renaming of Streets, Public Places, Natural Areas, Artefacts and Council-Owned Buildings and Facilities The policy sets out criteria and rules for the evaluation of proposed names for new and existing features. Features refer to streets, public places, natural areas, artefacts and Council- owned buildings and facilities.

The policy further sets out the processes to be followed for each type of application and provides for the establishment of a Renaming Committee and Panel of Experts. The policy was approved by Council on 31 May 2017.

Identification of Land for Cemetery Purposes Study: Phase 1 The need for land for cemetery purposes was identified. A study was launched to identify the most suitable land possible. Phase 1 of the study consisted of high-level data and imagery analysis as well as the determination of the extent of land needed for the next 50 years.

Identification of Land for Cemetery Purposes Study: Phase 2: Master Development Potential Plan for Farm 1341/0 The owner of Farm 1341/0, the South African Heritage Resources Agency (SAHRA), provided the municipality with its permission to apply for a permit in order to initiate on-site ground truthing.

A service provider was appointed on 15 March 2017 to manage the permit application process to SAHRA and conduct the necessary ground truthing studies.

The permit application was submitted on 19 April 2017. The purpose of the ground truthing process is to present a Master Development Potential Plan for the site to the South African Heritage Resources Agency for consideration in order to unlock possible development opportunities. It is expected that SAHRA will issue the permit in August 2017 where after the service provider can access the site.

Heritage Guidelines The project focuses on the identification of heritage guidelines for conservation areas as well as a proposal for a possible heritage by-law aimed at enforcing the protection of Grade III

102

heritage resources. This process was completed in the 2015/16 financial year. This project will be incorporated with the Integrated Zoning Scheme project, with accompanying public participation processes to take place during the 2017/18 financial year.

Road Map for Devolution of Heritage Competency A draft “Road Map” for the devolution of provincial heritage competency towards Drakenstein Municipality has been developed, after Heritage Western Cape indicated its support thereof. The document unpacks issues of legislation, inventory, personnel, advisory committees, administration, management and implementation. The document will be submitted to Council for consideration in the 2017/18 financial year.

GIS Projects Development A GIS web-application for Heritage was developed and deployed on the basic architecture previously build. New architectural development included an SQL-based reporting service for Heritage information accessed via the Heritage Mapper. The architecture behind the reporting service allows further reporting services to be developed for units across the organisation as the need arises. Training and support was provided for clients and users with respect to the newly deployed web-applications.

Zoning – Data creation & historic update An overview needs assessment was undertaken for planned development of a GIS model for Land Use Management. In preparation of the public participation process for the Integrated Zoning Scheme, the historic multi-schemes zoning data was used to integrate into Drakenstein’s GIS. A Zoning Viewer was developed and Land Use Planning Division was provided with rights to edit and update the data. This was completed by mid-June 2017.

Electronic Building Control Management System The existing electronic building plan application system has been reviewed and expanded to allow architectural practitioners to submit building plan applications remotely. The application once checked for completeness will then be circulated electronically to the commenting internal units and all comments are provided on the system.

The practitioner will be able to follow the progress of the building plan and the amendments, if required, will be provided electronically. The amended plan will then be submitted electronically by the applicant, it is circulated electronically to the specific units that requested amendments and if all amendments have been addressed satisfactorily, the building plan is approved electronically and forwarded to the applicant.

The system further allows the capturing of information on site by the building inspectors, the issuing of compliance notices via the system and the evaluation of occupation certificate applications. The system development has been finalised and the system will be implemented as of 1 July 2017.

103

New Land Use Management System The most important instrument used in land use management is the Land Use Management System (previously Zoning Scheme Regulations). It must be noted that four different sets are currently in existence / operation for different parts of the Municipal Area. In order to comply with the provisions of new planning legislation, adopt and utilise best practice and trends and to cater for local economic development, a new single and integrated Land Use Management System for the whole of the Drakenstein Municipal Area is being developed. This is a 3-year project in which the public will also be involved and is expected to be completed by the end of the 2017/18 financial year.

COMMENT ON THE PERFORMANCE OF PLANNING SERVICES OVERALL The primary projects of the Planning Services Department are operational by nature. The capital expenditure during the financial year was for the provision of equipment to the department.

3.10 LOCAL ECONOMIC DEVELOPMENT (INCLUDING TOURISM AND MARKET PLACES)

Since 2008 Drakenstein Municipality has placed a significant emphasis on destination marketing to achieve its vision to establish Destination Drakenstein as a nationally and internationally recognised premier tourism destination. With this in mind, in 2013 the Municipality successfully contributed towards the establishment of the official Destination Marketing Organisation, the Drakenstein Local Tourism Association in partnership with the private sector and ensured that some of the key tourism sector elements required to grow the sector are in place.

This include amongst others, investing in a broad spectrum of events which range from iconic to community events to attract visitor numbers but at the same time facilitate geographical spread of tourism into the region. International iconic sporting events such as the Cape Epic and Best Med Cycling tour continue to benefit from the municipality’s generous financial and non-financial support.

Destination Drakenstein is a popular international wedding destination of choice and it prides itself on having the perfect natural playground because of its scenic natural surroundings to enjoy adventure tourism activities such as mountain biking, hiking and canoeing down the Berg River. Tourism therefore is an integral sector of Drakenstein’s economy and the Municipality will continue to invest to ensure that the sector remains resilient and most importantly relevant in the future.

During 2016/17 the LED and Tourism unit continued their drive to accelerate economic development through the provision of strategic interventions that focused mostly on Job

104

Creation, support to the Informal Economy, Entrepreneurship and Capacity building programmes and intensifying strategic tourism interventions in the area.

The strategic interventions we focused on included:

 Improving business hives to provide much needed infrastructure for emerging entrepreneurs;  Provided opportunities to ensure the provision of suitable skills needed for entrepreneurs to grow their businesses;  Mainstreamed the Expanded Public Works Programme through broadening the participation of within municipal operations;  Establishing sustainable partnerships to ensure that we have a greater impact in the region. This included partnerships with the Private Sector and other spheres of Government; and  Promoting Drakenstein’s excellent quality of life so that we become the preferred tourism and investment friendly destination of the Cape Winelands.

Below are some of the highlights we achieved during the 2016/17 financial year:

 Developed two business hives that provides affordable infrastructure for informal businesses namely, the Arendsnes and Wamkilekile Business Hives;  The Municipality partnered with SEDA and facilitated business support training workshops to approximately 120 participants in Drakenstein area;  Facilitated two business support initiatives in the VPUU area where upcoming entrepreneurs will receive business mentoring and support;  A total number of 1,600 job opportunities were created which in turn amounted to an increase of 105% of the national EPWP grant allocation to the Municipality; and  The Tourism sector experienced a significant boost in tourism product development with the recent establishment of an Integrated Arts and Crafts Route to expand our tourism reach into previously disadvantaged areas and the hinterland. The establishment of this route will facilitate more product development in these areas and will unlock further tourism potential amongst our hidden gems.

Stakeholder engagement remains one of the Municipality’s key focus areas. The LED Unit with the Office of the City Manager are in the process of engaging the biggest employers in the Drakenstein area in order to obtain consensus with regard to the Municipality’s economic plan and its priorities. A Development and Investment Forum was also established in order to fast track major developments and cut red tape for investment into the Drakenstein area.

105

Economic Activity by Sector R’000 000 Sector 2014/15 2015/16 2016/17 Agriculture, forestry and fishing 1,209 1,206 1,337 Mining and quarrying 40 44 46 Manufacturing 2,771 2,955 3,044 Electricity, gas and water 435 487 514 Construction 1,344 1,485 1,560 Wholesale, retail trade, catering and accommodation 2,992 3,278 3,590 Transport, storage and communication 1,568 1,658 1,731 Finance, insurance, real estate and business services 3,769 3,942 4,218 Government, community and social services 1,856 1,983 2,130 Community, social and personal services 1,420 1,551 1,647 Total 17,404 18,589 19,816 Table 74: Economic Activity by Sector Source: Quantec Research, 2017. Disclaimer: Please note that the Municipality changed the data source in 2016/17 to better align with the Municipal Economic Review and Outlook.

Economic Employment by Sector Jobs Sector 2014/15 2015/16 2016/17 Agriculture, forestry and fishing 12,661 16,136 15,924 Mining and quarrying 74 77 77 Manufacturing 9,265 9,178 8,949 Electricity, gas and water 304 326 338 Construction 8,726 8,929 9,302 Wholesale, retail trade, catering and accommodation 23,313 24,240 24,643 Transport, storage and communication 4,318 4,673 4,369 Finance, insurance, real estate and business services 14,919 15,618 15,964 General government 12,212 11,916 12,149 Community, social and personal services 15,585 16,495 16,880 Total 101,377 107,588 108,595 Table 75: Economic Employment by Sector Source: Quantec Research, 2017. Disclaimer: Please note that the Municipality changed the data source in 2016/17 to better align with the Municipal Economic Review and Outlook.

Western Cape Government broadband / Wi-fi connectivity The Municipality developed a discussion document on access to broadband and we are currently pursuing collaborative initiatives with the relevant departments in the Western Cape Government on how to facilitate access to Wi-fi in previously disadvantaged community through piggy-backing on Province’s existing Wi-fi initiatives in the municipal area.

Coordination of Expanded Public Works Programme (EPWP) The EPWP is designed to provide temporary employment opportunities to as many unemployed residents as possible. EPWP employment periods vary from project to project. In

106

certain circumstances, a project’s timeline may be extended for operational reasons, which may lead to some workers gaining a further period of employment.

The following table compares job creation through EPWP projects since the 2014/15 financial year:

Job creation through Expanded Public Works Programme (EPWP) Projects No. of Jobs created through EPWP No. of EPWP Projects Details Projects 2014/15 5 755 2015/16 8 1,118 2016/17 8 1,600 Table 76: Job creation through EPWP Projects

Local Economic Development Policy Objectives taken from IDP Strategic Objective (SO): Economic Growth and Development (Municipal KPA) Municipal Key Focus Area (KFA): Job Creation Annual Ref. Unit of Actual Name of Key Performance Indicator (KPI) Target no. Measurement 2016/17 2016/17 (NKPI - 4) The number of jobs created through Number of job TL18 the Municipality’s local economic development opportunities 750 1,600 initiatives including capital projects. created by 30 June. Table 77: Local Economic Development Policy Objectives taken from IDP

Employees: Local Economic Development Services 2015/16 2016/17 No. of Job Level Vacancies as a No. of No. of Vacancies (T-Grades) No. of Posts % of total Employees Employees (full-time posts) equivalents) 18 – 20 1 1 1 0 15 – 17 1 1 1 0 12 – 14 3 4 3 1 9 – 11 1 1 0 1 100.0% 6 – 8 0 0 0 0 3 – 5 0 0 0 0 1 – 2 0 0 0 0 Total 6 7 5 2 12.5% Table 78: Employees – Local Economic Development Services

107

Financial Performance 2016/17: Local Economic Development Services Rand 2015/16 2016/17 % Variance to Details Original Adjustments Actual Actual Adjustments Budget Budget Budget Total Operational Revenue 0 (54,813) (54,813) 0 -100.0% Expenditure: Employees 1,751,252 2,252,055 2,315,744 2,692,775 16.2% Impairment losses: Fin. Assets 0 0 610,000 608,719 -0.2% Interest Paid 0 0 0 0 0.0% Contracted Services 1,797,101 2,010,354 1,781,678 1,721,709 -3.3% Depreciation & Provisions 403,157 547,808 547,808 354,739 -35.2% Inventory 44,193 36,607 66,338 73,859 11.3% Operational Cost 2,108,149 3,583,511 3,168,871 3,159,492 -0.3% Total Operational Expenditure 6,103,853 8,430,335 8,490,439 8,611,294 1.4% Operating (Surplus) / Deficit 6,103,853 8,375,522 8,435,626 8,611,294 2.0% Table 79: Financial Performance 2016/17 – Local Economic Development Services

Capital Expenditure 2016/17: Local Economic Development Services 2016/17 % Variance to Capital Projects Adjustments Actual Total Project Budget Adjustments Budget Expenditure Value Budget Total all 537,500 498,783 494,685 2.41% 498,783 Major projects Refurbishment of Arendsnes building 0 73,023 73,023 0.00% 73,023 Informal Trading Kiosks in Paarl CBD 537,500 425,760 421,662 0.96% 425,760 Table 80: Capital Expenditure 2016/17 – Local Economic Development Services

The Arendsnes Business Hive in Wellington was completed and the new traders have commenced with their businesses. Ongoing projects for the next year include the development of new informal trading structures in the Paarl CBD and in the VPUU area, as well as the development of a Business Park in Ward 25.

COMPONENT D: COMMUNITY AND SOCIAL SERVICES

COMMUNITY DEVELOPMENT

The Community Development Section is responsible for poverty relief initiatives, support to vulnerable groups, including youth, gender, the disabled and the early childhood development (ECD) sector. It also manages the Mayoral Ward Projects in 33 wards and the distribution of the Grant in Aid Funds.

The section facilitated various skills development workshops for the unemployed youth, which included bricklaying, hairdressing, beautician training, waiter training and computer training.

108

The aim of the skills training was to empower unskilled and unemployed youth with skills so that they could immediately access job opportunities. Two skills development workshops were facilitated for the Drakenstein ECD sector in the rural areas, including participants from Saron and Gouda.

The strategic, programmatic focus of the section is to develop and establish social support networks and to develop and promote community livelihood strategies. The principles guiding the implementation of programmes and projects are based on labour-intensive job creation initiatives that sustain and support impoverished households.

The section is also responsible for the Paarl East and Mbekweni Thusong Centres. These Thusong centres are one-stop facilities that provide opportunities to access a compendium of government services to surrounding communities. These include social services, social pensions and grants, consumer protection and numerous municipal services.

The municipal halls are also managed by this section and these include the Wellington and Paarl Town Halls, as well as the Huguenot, Gouda, Fairyland, Mbekweni and Colibri community halls.

The section is also responsible for project management of the construction of the Saron and Simondium Community halls. The estimated time of completion for these facilities are in September and November of 2017 respectively.

Community Development Policy Objectives taken from IDP Strategic Objective (SO): Social and Community Development (Municipal KPA) Municipal Key Focus Area (KFA): Sport and Recreation Annual Ref. Actual Name of Key Performance Indicator (KPI) Unit of Measurement Target no. 2016/17 2016/17 Implement the Sport and Recreation capital % of Capital Budget TL32 projects measured quarterly in terms of the 96% 98.99% spent by 30 June. approved Capital Budget spent. Table 81: Community Development Policy Objectives taken from IDP

3.11 LIBRARIES

Drakenstein Library and Information Services consists of 18 library sites stretching from Saron to Simondium. The Library Section is in the process of opening a service site for the community of Chicago at the Thusong Centre, intending building a library for this community in the next five years.

109

The libraries are instrumental in society to support formal and informal education with respect to literacy and numeracy by:

 Encouraging people to read and develop a love for books;  Providing various information and knowledge in different formats;  Providing platforms for creative, innovative, scientific and mathematical advancements; and  Providing a library service to learners in the absence of school libraries.

However, after 20 years of democracy, libraries still struggle to be recognised as knowledge institutions that have the capacity to contribute:

 To the reduction of illiteracy and numeracy;  As channels for the development for socio-economic changes especially towards poverty and unemployment; and  Act as change agents for democracy.

Drakenstein public libraries thus are and will continue to function as vehicles for the eradication of illiteracy and the improvement of numerical competencies in our communities. During the 2016/17 year under review, 712,462 library items were circulated with a total membership of 90,508.

Service Statistics for Libraries 2016/17 Programme Q1 Q2 Q3 Q4 Full Year Displays 144 137 153 144 578 Storytelling sessions 110 73 122 112 417 Reading Programmes 28 23 10 52 113 Book Education, Library Orientation, Class Visits and Bibliographic Instruction 109 66 135 194 504 Library Centred activities 17 3 21 5 46 Holiday programme activities 27 55 13 37 132 Community and outreach programmes 88 58 52 59 257 Book Discussions, Book Talks and Book Clubs 43 32 24 25 124 Literacy sessions facilitated 137 228 357 717 1,439 ICT computer usages 14,255 12,158 16,381 15,120 57,914 Learner support 3,155 2,577 3,310 4,047 13,089 Circulation 179,067 153,426 161,492 174,642 668,627 Membership 86,003 86,391 84,769 88,458 88,458 New members added 443 167 575 431 1,616 Total Library visits 93,591 37,750 98,829 80,127 310,297 Province Own Total Library stock 183,711 34,579 218,290 Service Statistics for Satellite Libraries 2016/17 Programme Q1 Q2 Q3 Q4 Full Year Displays 36 32 28 32 128

110

Service Statistics for Libraries 2016/17 Programme Q1 Q2 Q3 Q4 Full Year Storytelling sessions 86 60 89 87 322 Reading Programmes 33 21 19 34 107 Book Education, Library Orientation, Class Visits and Bibliographic Instruction 57 34 41 51 183 Library Centred activities 1 5 3 16 25 Holiday programme activities 0 0 3 1 4 Community and outreach programmes 16 14 14 13 57 Book Discussions, Book Talks and Book Clubs 6 6 9 16 37 Literacy sessions facilitated 0 0 0 17 17 ICT computer usages 45 24 52 79 200 Learner support 32 28 38 64 162 Circulation 14,988 5,952 11,701 11,175 43,835 Membership 2,132 1,790 2,031 2,050 2,050 New Members added 1,615 28 169 65 1,877 Province Own Total Library stock 32,920 11,309 44,229 Table 82: Service Statistics for Libraries

Libraries; Community Facilities; Other Policy Objectives taken from IDP Strategic Objective (SO): Social and Community Development (Municipal KPA) Municipal Key Focus Area (KFA): Libraries Annual Ref. Name of Key Performance Indicator Actual Unit of Measurement Target no. (KPI) 2016/17 2016/17 Submit a quarterly report to the Executive Mayor on the Number of reports submitted to TL42 4 4 implementation of library the Executive Mayor by 30 June. programmes. Table 83: Libraries, Community Facilities, and other Policy Objectives taken from IDP

Employees: Libraries; Community Facilities, Other 2015/16 2016/17 No. of No. of Job Level No. of No. of Vacancies Vacancies No. of Posts Employees Employees (full-time (as a % of equivalents) total posts) 0-3 1 1 1 0 4-6 0 0 0 0 7-9 10 11 10 1 9.1% 10-12 10 11 10 1 9.1% 13-15 35 39 35 4 10.3% 16-18 11 12 11 1 8.3% 19-20 0 0 0 0 Total 67 74 67 7 9.5% Table 84: Employees – Libraries

111

Financial Performance 2016/17: Libraries, Community Facilities, Other Rand 2015/16 2016/17 % Variance to Details Original Adjustments Actual Actual Adjustments Budget Budget Budget Total Operational Revenue (13,542,295) (15,187,773) (22,758,177) (15,149,157) -33.4% Expenditure: Employees 13,123,752 14,133,203 14,207,771 14,636,476 3.0% Impairment losses on Financial Assets 0 0 0 0 0.0% Interest Paid 0 0 0 0 0.0% Contracted Services 930,606 891,559 1,144,353 1,107,677 -3.2% Depreciation and Provisions 538,806 1,045,728 1,045,728 495,873 -52.5% Inventory 287,500 206,128 298,451 298,686 0.0% Operational Cost 1,105,571 853,313 938,034 918,114 -2.1% Total Operational Expenditure 15,986,234 17,129,931 17,634,337 17,456,825 -1.0% Operating (Surplus) / Deficit 2,443,939 1,942,158 (5,123,840) 2,307,668 -145.0% Table 85: Financial Performance 2016/17 – Libraries, Community Facilities and Other

Capital Expenditure 2016/17: Libraries, Community Facilities, Other Rand % Variance to Adjustments Actual Total Project Capital Projects Budget Adjustments Budget Expenditure Value Budget Total all 8,135,500 7,036,181 6,566,701 6.67% 7,036,181 Major projects Community Hall and Facilities: Saron 3,767,750 4,469,002 4,062,332 9.10% 4,469,002 Community Hall and Facilities: Simondium 3,767,750 1,783,328 1,783,327 0.00% 1,783,328 PPE CO: Build - Acquisitions 0 321,896 321,896 0.00% 321,896 Table 86: Capital Expenditure 2016/17 – Libraries, Community Facilities and Other

COMMENT ON THE PERFORMANCE OF LIBRARIES AND COMMUNITY FACILITIES

The Thusong Centres that were developed by the Municipality are now functional. Members of the public are also allowed to use and hire the venue for community events and projects.

The construction of the two community halls in Saron and Simondium has started and will be completed before the end of November 2017.

Drakenstein libraries are places where community interaction happens and where citizens been empowered through the accessibility of resources and tools to retrieve the sought after information. Libraries provided projects and programmes for the alteration of communities and

the people.

112

3.12 CEMETERIES AND CREMATORIA

Drakenstein Municipality has 11 cemeteries and 4 out of the 11 cemeteries are still active. Wellington and Simondium cemeteries is filled to capacity and the overflow from Wellington and Simondium contributes to the reduction of the lifespan of the Parys Cemetery.

Apart from the Parys Cemetery, the other three active cemeteries with reasonable space are located in Gouda (55km from Paarl), Saron (73km from Paarl) and Hermon (43km from Paarl). The number of burials that took place for the period 1 July 2016 to 30 June 2017 is 1,397. This results in an average of 116 burials per month. Drakenstein Municipality does not have a Municipal crematorium.

Cemeteries and Crematoria Policy Objectives taken from IDP Strategic Objective (SO): Health, Safety and Environment (Municipal KPA) Municipal Key Focus Area (KFA): Parks, Cemeteries and Open Spaces Annual Ref. Actual Name of Key Performance Indicator (KPI) Unit of Measurement Target no. 2016/17 2016/17 Report on the maintenance and upgrading Number of reports submitted D298 on the 6-week maintenance cycle at all 1 2 to Executive Manager. municipal cemeteries. Table 87: Cemeteries and Crematoria Policy Objectives taken from IDP

Employees: Cemeteries and Crematoria 2015/16 2016/17 Job Level No. of No. of No. of No. of Vacancies Vacancies (as (T-Grades) No. of Posts Employees Employees (full-time a % of total equivalents) posts) 18 – 20 1 1 1 0 15 – 17 3 7 3 4 57.1% 12 – 14 3 2 0 2 100.0% 9 – 11 13 34 18 16 47.1% 6 – 8 50 88 52 36 40.9% 3 – 5 98 220 199 21 9.5% 1 – 2 0 0 0 0 Total 168 352 273 79 22.4% Table 88: Employees – Cemeteries and Crematoria

113

Financial Performance 2016/17: Cemeteries and Crematoria Rand 2015/16 2016/17 % Variance to Details Original Adjustments Actual Actual Adjustments Budget Budget Budget Total Operational Revenue (2,361,018) (2,075,888) (2,075,888) (2,361,944) 13.7% Expenditure: Employees 5,010,778 4,933,969 6,199,434 6,491,347 4.7% Impairment losses on Financial Assets 0 0 0 0 0.0% Interest Paid 0 0 0 0 0.0% Contracted Services 210,801 413,855 743,050 322,980 -56.5% Depreciation and Provisions 553,101 743,920 743,920 468,425 -37.0% Inventory 90,240 108,112 103,612 82,317 -20.5% Operational Cost 449,890 703,203 797,306 569,439 -28.5% Total Operational Expenditure 6,314,810 6,903,059 8,587,322 7,934,508 -7.6% Operating (Surplus) / Deficit 3,953,792 4,827,171 6,511,434 5,572,564 -14.4% Table 89: Financial Performance 2016/17: Cemeteries and Crematoria

Capital Expenditure 2016/17: Cemeteries and Crematoria* Rand % Variance to Adjustments Actual Total Project Capital Projects Budget Adjustments Budget Expenditure Value Budget Total all 0 0 0 0 0 Major projects None 0 0 0 0 0 Table 90: Capital Expenditure 2015/2016 – Cemeteries and Crematoria *Note: No specific projects were included in the budget for the above section.

THE PERFORMANCE OF THE CEMETERIES AND CREMATORIA SECTION OVERALL Cemeteries The Cemetery Section will finalise the process of identification of suitable land for the development of

cemeteries. Out of the 11 existing cemeteries only 4 is still available for burials and it impacts negatively on available resources. Maintenance is a serious challenge due to the increase amount of burials.

3.13 CHILD CARE, AGED CARE AND SOCIAL PROGRAMMES

The Early Childhood Development (ECD) sector is serviced by the Community Development Section. The top service delivery priorities for the sector were:

 To establish the needs of the ECD sector within the Drakenstein Municipal Area. This process included mobilising all the existing ECD Forums to determine their needs and to prioritise these needs within the framework of the IDP;

114

 To facilitate training for ECD practitioners on the needs that was identified by the ECD Forum as priority training needs. Training focused on training for teachers of children affected by Foetal Alcohol Syndrome. Other training also focused on health and sanitation training for ECD practitioners; and  To renovate and upgrade the ECD facilities. Permission was granted to construct an ECD facility in the Fairyland / Groenheuwel area and the construction of this facility has started.

Child Care; Aged Care; Social Programmes Policy Objectives taken from IDP Strategic Objective (SO): Social and Community Development (Municipal KPA) Municipal Key Focus Area (KFA): Special Programmes (Gender, Elderly, Youth and Disabled) Annual Ref. Name of Key Performance Indicator Actual Unit of Measurement Target no. (KPI) 2016/17 2016/17 Arrange 4 skills training workshops for Number of workshops held by 30 TL35 4 4 the youth by 30 June. June. Table 91: Child Care, Aged Care, and Social Programmes Policy Objectives taken from IDP

Employees: Child Care, Aged Care, Social Programmes 2015/16 2016/17 No. of Job Level Vacancies No. of No. of Vacancies (T-Grades) No. of Posts (as a % of Employees Employees (full-time total posts) equivalents) 18 – 20 1 1 1 0 15 – 17 0 0 0 0 12 – 14 2 3 2 1 33.3% 9 – 11 2 2 2 0 6 – 8 0 0 0 0 3 – 5 0 0 0 0 1 – 2 0 0 0 0 Total 5 6 5 1 16.7% Table 92: Employees – Child Care, Aged Care, Social Programmes

115

Financial Performance 2016/17: Child Care, Aged Care, Social Programmes* Rand 2015/2016 2016/2017 % Variance to Details Adjustments Actual Original Budget Actual Adjustments Budget Budget Total Operational Revenue * * * * * Expenditure: * * * * * Employees * * * * * Repairs and Maintenance * * * * * Depreciation and Provisions * * * * * Other * * * * * Total Operational Expenditure * * * * * Operating (Surplus) / Deficit * * * * * *Note: Financial information is not broken down into these groups. Table 93: Financial Performance 2016/17 – Child Care, Aged Care, Social Programmes

Capital Expenditure 2016/17: Child Care, Aged Care, Social Programmes Rand % Variance to Adjustments Actual Total Project Capital Projects Budget Adjustments Budget Expenditure Value Budget Total all 0 0 0 0 0 Major projects None 0 0 0 0 0 Table 94: Capital Expenditure 2016/17 – Child Care, Aged Care, Social Programmes

Skills Training for Youth Skills Training (Course) Participants Waiter Training 20 Beautician Training 20 Accredited Computer Training 50 Home-based Care Training 30 Life Skills Training 20 Table 95: Skills Training for youth

Gender Forum A Gender Forum was established with the gender representatives of the ward committees. A draft plan of action for the Gender Forum was developed and implementation commenced during the 2016/17 financial year. This included special projects such as gender-focused intervention programmes during Women’s Month, Human Rights Day and 16 Days of Activism for no Violence against Women and Children.

Elderly Forum Two engagements were held with the Elderly and the Disabled People’s Forum. These engagements allowed them to access municipal facilities free of charge so that they could host various functions on their events calendar. The elderly sector was also assisted in terms of hosting the regional Golden Games at the Dal Josaphat Stadium. The elderly also has

116

several service benefits that can be accessed, including reduced tariffs for water and electricity.

Strategic Objective (SO): Social and Community Development Municipal Key Focus Area (KFA): Poverty Alleviation

Ref. Key Performance Annual Target Unit of Measurement Actual 2016/17 no. Indicator (KPI) 2016/17

Update Indigent % of all qualifying indigent applications TL51 99% 100% Register processed by 30 June. Report on the % of households earning less Provision of free basic TL52 than 2 x social grant plus 25% per month with 1 1 services access to free basic services. Table 96: Strategic Objectives: Social and Community Development

THE PERFORMANCE OF CHILD CARE; AGED CARE; SOCIAL PROGRAMMES OVERALL

Youth The Community Development section hosted a Drakenstein Youth month programme. The aim of the

Youth month programme was to provide Drakenstein youth with a platform to engage different

government and community stakeholders on the challenges that youth faced; including unemployment, substance abuse, skills development, gender based violence, healthy lifestyles, teenage pregnancies, cervical cancer and etcetera.

A Youth Day commemoration was also held at the Paarl East Multipurpose Thusong Service Centre. The 16 June commemoration was attended by 700 youth. The keynote speaker at the event was the Minister of Community Safety, Mr. Dan Plato.

Skills Training for Youth The skills training for the youth was premised on the principle that all skills training had to result in the participant being able to immediately access a job opportunity as an outcome of the skill that had been learnt. The accredited courses that were provided during this financial year included beautician training, carpentry training, waiter training and computer training.

COMPONENT E: ENVIRONMENTAL PROTECTION

The Municipality has implemented integrated environmental management (IEM) in its entirety and has no dedicated sections or sub-sections dealing with components of IEM.

This section’s service delivery focus is to ensure an environment that is safe, not harmful and is protected for future generations by protecting and enhancing the Municipality’s environmental assets and natural resources. The mission is to manage the implementation of Drakenstein Municipality’s Environmental Policy, to give effect to Presidential Outcome 10 within the mandate of local government and to give effect to Provincial Strategic Objective 7 within the mandate of local government.

117

The section is responsible for:

 Managing the integrated environmental management process;  Managing the Environmental Management System;  Maintaining and updating the State of the Environment Report;  Managing air quality and implementing the Air Quality Management Plan;  Managing noise control, managing and implementing the Environmental Management Framework;  Managing the conservation and restoration of natural resources;  Undertaking environmental audits;  Preparing environmental policy documents;  Commenting on environmental issues;  Compiling environmental reports;  Environmental law enforcement; and  Environmental awareness rising.

The Environmental Management System (EMS), based on the International Standard ISO 14001, for Drakenstein Municipality was maintained as far as possible given the staff capacity constraints. The EMS includes an Environmental Policy Framework.

The Standard Operating Procedure (SOP) that was developed to deliver integrated comment on environmental applications is continually being implemented. The Drakenstein Municipality fulfils an important role as a commenting authority on environmental applications for proposed developments within the Municipality. By providing thorough and meaningful comment on environmental applications, the Municipality is able to guide and influence development proposals, so as to promote development that is aligned with the environmental and socio-economic management objectives of the Municipality.

A Position Paper on Climate Change Response was also completed, which aims at addressing climate change impacts through all municipal operations. This section is currently working on finalising a Climate Change Response Plan. The section also completed a Position Paper on Alien Species Management. This section is currently working on finalising an Alien Species Management Plan that will highlight priority areas for alien species management on municipal property as required by the National Environmental Management Biodiversity Act No. 10 of 2004.

During the year, 13 environmental complaints were received and investigated and all the investigations were completed.

The Environmental Management Section was involved in seven awareness-raising events during the year. This included two showcase events for Earth Day and World Environment Day respectively. A total of 19 environmental reports were done for various applications.

118

3.14 POLLUTION CONTROL

Pollution control is not a dedicated function but is dealt with as a subcomponent of a number of different sections in the Municipality. These sections include Environmental Management, Water and Sewerage Services, Waste Management, Building Control and Law Enforcement.

Service Statistics for Pollution Control During the 2016/17 financial year, 12 pollution-related complaints were received. Compliance notices were not issued by this section as cases were referred to either the Department of Environmental Affairs and Development Planning, the Department of Water Affairs or the Civil Engineering Services Department for enforcement. The 12 complaints received and investigated can be broken down as follows:

 Five air pollution-related complaints;  Five water pollution related complaints; and  Two general environmental pollution complaints.

Pollution Control Policy Objectives taken from IDP Strategic Objective (SO): Health, Safety and Environment (Municipal KPA) Municipal Key Focus Area (KFA): KFA 33. Environmental Management Annual Ref. Actual Name of Key Performance Indicator (KPI) Unit of Measurement Target no. 2016/17 2016/17 Draft and submit to the Executive Manager a Draft Position Paper Position Paper on the Climate Change, D260 submitted to the EM by 1 1 Adaptation and Mitigation for Drakenstein 30 June. Municipality. Table 97: Pollution Control Policy Objectives taken from IDP

119

THE PERFORMANCE OF POLLUTION CONTROL OVERALL

The prevention of pollution and degradation of the environment remains a priority and is dealt with as a cooperative function between the departments in the Municipality and external agencies.

This function is covered by the functional areas of a number of departments and sections in the Municipality. Pollution control is dealt with operationally by the department or section that is most closely aligned to the pollution incident, e.g. the Solid Waste Section will deal with illegal dumping and the Sewerage Section will deal with liquid pollution.

The National Environmental Management Act, no 107 of 1998 (NEMA) Section 30 incidents are dealt with on an ad-hoc basis in conjunction with other agencies and to date only relatively minor incidents have been reported. Reporting is undertaken on a regular basis to internal, Provincial and National Authorities.

3.15 BIODIVERSITY, LANDSCAPE (INCLUDING OPEN SPACES)

Biodiversity Management is dealt with as a subcomponent of a number of different sections in the Municipality.

These sections include:

 Environmental Management;  Streets and Stormwater;  Waste Management;  Parks and Recreation;  Law Enforcement; and  Town Planning.

Biodiversity is maintained largely via the private sector. The Municipality’s EPWP is focused on alien vegetation clearing and the Parks and Recreation Section contributes to this function by planting indigenous vegetation.

120

Employees: Environmental Management 2015/16 2016/17 No. of Job Level Vacancies No. of No. of Vacancies (T-Grades) No. of Posts (as a % of Employees Employees (full-time total posts) equivalents) 18 – 20 1 1 1 0 15 – 17 0 2 0 2 100.0% 12 – 14 2 2 2 0 9 – 11 1 1 1 0 6 – 8 0 0 0 0 3 – 5 0 0 0 0 1 – 2 0 0 0 0 Total 4 6 4 2 33.3% Table 98: Employees - Environmental Management

Biodiversity, Landscape and Other Policy Objectives taken from IDP Strategic Objective (SO): Health, Safety and Environment (Municipal KPA) Municipal Key Focus Area (KFA): Environmental Management Annual Ref. Name of Key Performance Indicator (KPI) Unit of Measurement Target Actual no. 2016/17 2016/17 Draft and submit to the Executive Draft Position Paper Manager a Position Paper on the D352 submitted to the EM by 1 1 Management of alien species on 30 June. Municipal land. Table 99: Biodiversity, Landscape and Other Policy Objectives taken from IDP

THE PERFORMANCE OF BIODIVERSITY; LANDSCAPE AND OTHER OVERALL The function is covered by the functional areas of a number of departments and sections in the Municipality. Biodiversity, landscape and other is dealt with operationally by the department or section that is most closely aligned to the function, i.e. Parks and Recreation deal with landscaping and some alien clearance. Stormwater deals with alien clearance in the rivers on property owned and managed by the Municipality. Paarl Mountain Nature Reserve deals with alien clearance and the management of biodiversity in the nature reserve. Other urban conservation areas are a joint responsibility of Environmental Management and Solid Waste Services. No dedicated biodiversity, landscape and other capital projects were undertaken, but some projects reported on in other areas can be considered as biodiversity, landscape and other projects.

121

COMPONENT F: SECURITY AD SAFETY

INTRODUCTION TO SECURITY AND SAFETY

The mission of Traffic Services is to render an effective and high-quality service through a process of consultation and transparency in all facets of the traffic services, and in rendering a service to the community of Drakenstein and its visitors by ensuring the free flow of traffic and creating a safe environment.

3.16 TRAFFIC, LICENSING AND LAW ENFORCEMENT

During the year 2016/17, a large number of offences were dealt with. The main purpose of this section is not only to prosecute, but also to educate offenders.

The main activities undertaken were:

 Apprehending offenders talking on cell phones while driving, red light and stop street violations, failure to wear seatbelts, excessive speeding, taxis, red and yellow line offences, illegal number plates and driving under the influence of alcohol – all of the aforementioned contributed to a high accident rate;  Dealing with illegal dumping, illegal occupation of municipal property and vagrancy throughout Drakenstein;  Corrective measures taken inter alia include the commissioning of red light and speed violation cameras, selective law enforcement on safety belts, cell phones, number plates and public transport;  The construction of our public transport impoundment facility was completed;  The implementation of mobile cameras to effectively deal with excessive speed;  Traffic safety talks at various institutions to address irresponsible driver behaviour and pedestrian safety; and  Law enforcement officers were trained to effectively deal with Municipal by-laws.

Traffic, Licensing and Law Enforcement Service Data 2015/16 2016/17 Details Actual Actual Number of road traffic accidents during the 3,395 1,021 year Number of by-law infringements attended 1,758 2,932 Number of traffic officers in the field on an 5 – Early Shift 5 – Early Shift 5 – Late Shift 5 – Late Shift average day = 10 officers per day = 10 officers per day 7 – Testing Station 7 – Testing Station Number of traffic officers on duty on an 5 – Early Shift 5 – Early Shift average day 5 – Late Shift 5 – Late Shift = 17 officers per day = 17 officers per day Table 100: Traffic, Licensing and Law Enforcement Service Data

122

Law Enforcement Policy Objectives taken from IDP Strategic Objective (SO): Health, Safety and Environment (Municipal KPA) Municipal Key Focus Area (KFA): Municipal Law Enforcement Annual Ref. Name of Key Performance Actual Unit of Measurement Target no. Indicator (KPI) 2016/17 2016/17 Respond to law enforcement % Response to all law enforcement TL38 90% 95.60% complaints. complaints within 24 hours. Table 101: Law Enforcement Objectives taken from IDP

Employees: Law Enforcement Officers 2015/16 2016/17 No. of No. of Job level No. of No. of Vacancies Vacancies (as No. of Posts Employees Employees (full-time a % of total equivalents) posts) 0 – 3 0 0 0 0 4 – 6 0 1 0 1 100.0% 7 – 9 1 1 1 0 10 – 12 15 19 15 4 21.0% 13 – 15 0 0 0 0 16 – 18 0 0 0 0 19 – 20 0 0 0 0 Total 16 21 16 5 23.8% Table 102: Employees – Law Enforcement

Financial Performance 2016/17: Law Enforcement Rand 2015/16 2016/17 % Variance to Details Adjustments Actual Original Budget Actual Adjustments Budget Budget Total operational revenue 0 (958) (958) (482) -49.6% Expenditure: Employees 6,710,341 7,558,166 6,778,112 6,749,762 -0.4% Impairment losses: Fin. Assets 0 0 0 0 0.0% Interest Paid 0 0 0 0 0.0% Contracted Services 5,539 80,532 70,532 55,263 -21.6% Depreciation and Provisions 28,016 69,721 69,721 13,048 -81.2% Inventory 79,872 56,730 292,925 282,167 -3.6% Operational Cost 722,546 1,406,596 1,372,270 945,903 -31.0% Total Operational Expenditure 7,546,314 9,171,745 8,583,560 8,046,143 -6.3% Operating (Surplus) / Deficit 7,546,314 9,170,787 8,582,602 8,045,661 -6.3% Table 103: Financial Performance 2016/2017 – Law Enforcement

123

Capital Expenditure 2016/17: Law Enforcement Rand % Variance to Adjustments Actual Total Project Capital Projects Budget Adjustments Budget Expenditure Value Budget Total all 2,605,000 7,450,807 7,438,298 -0.17% 7,482,794 Major projects Vehicle Impound 0 5,044,830 5,044,830 0.00% 5,044,830 Traffic HQ 2,605,000 2,168,074 2,155,565 -0.58% 2,168,074 Generator MVR Dal Josaphat 0 237,903 237,903 0.00% 237,903 Table 104: Capital Expenditure 2016/17 – Law Enforcement

COMMENT ON THE PERFORMANCE OF LAW ENFORCEMENT OVERALL

The Law Enforcement Section ensures that all residents within the Municipal boundaries adhere to the by-laws and renders an effective and equitable service in all wards to create a safe environment.

Law Enforcement also renders support services to the Housing Department with the demolishing of structures.

Regular foot patrols are undertaken in the CBD’s to ensure compliance by informal traders and to combat vagrancy.

Law Enforcement joined operations with SAPS to decrease incidents of social crime and arranged training for neighbourhood watch members to assist with crime prevention.

FIRE SERVICE

Functionally, the Fire Department is divided into five areas, namely: operations, training, support services, fire safety and disaster risk management. Within these functional areas, the following activities take place or are conducted:

Operations: The division operates a 24-hour service and an emergency control centre, which responds to all incidents in the Municipal Area within predetermined times. The Municipality is proud to report that it achieves these goals most of the time due to the geographical location of all fire stations. The Fire Service has four fire stations that are located in Mbekweni, Wellington, Saron and Paarl, which also has its own firehouse.

Professional Fire-Fighter Training: The Drakenstein Municipality is accredited as a Fire Training Centre and provides professional firefighting training to all appointed Fire Service personnel and to neighbouring fire services. The training centre also complements other accredited training centres in the region. The objective of continuous training is to improve the skills and development of the Fire communities. During the reporting period, 99 Fire Service Officials were trained.

124

The following training were conducted and attended by fire service personnel:

Number of Fire-Fighter Training officials attended Confined Space Rescue 4 Incident command and control 300 6 Fire service instructor Course 2 Incident Command System 100 and 200 24 Practical Pump Operations and Driving 8 Hazmat Operations Challenge 2 Swift water rescue course 2 Advanced Fire Safety Course 1 Daily drills and instruction per shift 21 Breathing Apparatus refresher course 36 Compressor Operator Course 12 Table 105: Fire-Fighter Training

Public and Life Safety Training: This training is centred on providing basic fire training and first aid education to the communities within the Municipal Area as a whole, specifically those communities residing in informal settlements such as Mbekweni, Chester Williams, Fairyland and Paarl East. The key focus this year was the children and women in these high-risk areas. The Municipality trained 54 community members from the aforementioned areas. The implementation of this training programme serves the communities well and the fruits are enjoyed through a reduction in fire calls and a reduction in loss of life.

A total of 1,721 children from primary and pre-primary schools were recipients of the Fire and Life Safety Programme: STOP, DROP AND ROLL AND LEARN NOT TO BURN. The programme is aimed at fire and life safety within the communities.

Support Services: The Fire Service operates a 24-hour emergency control and dispatch centre. All emergency calls are received by the centre and, depending on the emergency, the relevant vehicles are dispatched to attend to the incidents. The incidents are not confined to fire calls only. Professionally trained fire fighters responded to rescue and medical incidents, chemical incidents, other special services calls such as flooding and etcetera.

Fire Safety: This division focuses on risk, and building inspections, compliance with the National Building Regulations and the Building Standards Act, and related by-laws.

125

The following information highlights the activities in this division:

Number of Fire Safety – Activities activities / inspections Fire safety inspections 1,027 Inspections of overgrown erven and property 1,879 Lectures and demonstrations 65 Buildings plans scrutinised and approved 1,692 Events Management and risk visits 79 Table 106: Fire Safety – Activities

Disaster Risk Management: This service delivery priority is aimed at the annual review of the Corporate Disaster Management Plan, which was reviewed and submitted for final approval and implementation. All senior managers were updated and informed of the plan regarding their specific functional responsibilities.

The Municipality renders relief services to fire victims by handing out food parcels and blankets. During 2016/17, 426 blankets and 207 food parcels were handed out. Shack fires remain a challenge and in order to reduce the occurrence thereof, Fire Service engages in public and life safety education by training volunteers from the communities in the informal settlements. Measurable success was achieved.

Fire Service Data 2015/16 2016/17 Details Actual Actual Total fires attended to in the year 708 824 Total of other incidents attended to in the year 128 16 Average turnout time – urban areas (minutes) 10-12 10-12 Average turnout time – rural areas 20 20 Firefighters in post at year end 64 61 Total fire appliances at year end 12 11 Average number of appliances on the road during the year 12 9 Table 107: Fire Service Data

Fire Service Policy Objectives taken from IDP Strategic Objective (SO): Health, Safety and Environment (Municipal KPA) Municipal Key Focus Area (KFA): Disaster Management Annual Ref. Actual Name of Key Performance Indicator (KPI) Unit of Measurement Target no. 2016/17 2016/17 Number of plans reviewed Review the Disaster Risk Management Plan TL28 and submitted to Council by 1 1 and submit to Council by 31 May. 31 May. Table 108: Fire Service Policy Objectives taken from IDP

126

Employees: Fire Service 2015/16 2016/17 No. of Job level Vacancies (as a No. of No. of Vacancies (full- (T-Grades) No. of Posts % of total Employees Employees time posts) equivalents) 18 – 20 1 1 1 0 15 – 17 2 3 2 1 33.3% 12 – 14 11 30 11 19 63.3% 9 – 11 66 108 65 43 39.8% 6 – 8 4 12 4 8 66.7% 3– 5 0 0 0 0 1 – 2 3 5 3 2 40.0% Total 87 159 86 73 45.9% Table 109: Employees – Fire Service

Financial Performance 2016/17: Fire Service Rand 2015/16 2016/17 % Variance to Details Adjustments Actual Original Budget Actual Adjustments Budget Budget Total operational revenue (308,895) (318,849) (318,849) (370,173) 16.1% Expenditure: Employees 27,428,189 30,906,637 29,070,524 29,633,969 1.9% Impairment losses: Fin. Assets 0 0 0 0 0.0% Interest Paid 0 0 0 0 0.0% Contracted Services 583,569 648,926 861,036 728,696 -15.3% Depreciation and Provisions 715,707 967,477 967,477 505,174 -47.7% Inventory 87,636 98,192 154,952 135,825 -12.3% Operational Cost 5,336,847 6,539,511 6,194,511 5,025,616 -18.8% Total operational expenditure 34,151,947 39,160,743 37,248,500 36,029,280 -3.2% Operating (Surplus) / Deficit 33,843,053 38,841,894 36,929,651 35,659,107 -3.4% Table 110: Financial Performance 2016/17 – Fire Service

Capital Expenditure 2016/17: Fire Service Rand % Variance to Adjustments Actual Total Project Capital Projects Budget Adjustments Budget Expenditure Value Budget Total all 35,000 15,191 0 100.00% 15,191 Major projects Machine & Equip - Acquisitions 35,000 15,191 0 100.00% 15,191 Table 111: Capital Expenditure 2016/17 – Fire Service

127

COMMENT ON THE PERFORMANCE OF FIRE SERVICE OVERALL

The Fire Services Department is focused on rendering a customer-orientated service. Although there are challenges in terms of human resources, vehicles and equipment, the Municipality responded to

all incidents within prescribed response times. In the case of Saron and Gouda, the Municipality is

challenged in terms of the distance that needs to be covered. The Municipality manages and operates a 24-hour service at four fire stations located geographically throughout the Municipality. Continuous public and life safety programmes serve their purpose in the vulnerable communities and a reduction in shack fires has already been observed. All vacant posts in the department are to be advertised and appointments will be made in the second quarter of the new financial year.

COMPONENT G: SPORT AND RECREATION

3.18 SPORT AND RECREATION

Sports fields and halls in Drakenstein were prepared for 2,849 events / games for the period 1 July 2016 to 30 June 2017. The following table provides a comparison between 2014/15, 2015/16 and 2016/17 of the different sports codes’ utilisation of the facilities.

Number of Code 2014/15 2015/16 2016/17 fields Rugby 1,100 1,132 1,077 21 Cricket 244 364 351 12 Soccer 598 559 697 13 Cycling 6 3 8 1 Hockey 0 22 16 4 Athletics 36 26 76 4 Netball 497 612 511 14 Other Events (Including 38 Park runs 160 131 134 - in the Arboretum) Table 112: The different sports codes’ utilisation of sports facilities

Sport and Recreation Policy Objectives taken from IDP Strategic Objective (SO): Social and Community Development (Municipal KPA) Municipal Key Focus Area (KFA): Sport and Recreation Annual Name of Key Performance Indicator Actual Ref. no. Unit of Measurement Target (KPI) 2016/17 2016/17 Implement the Sport and Recreation capital projects measured quarterly in % of Capital Budget spent by TL41 96% 98.99% terms of the approved Capital Budget 30 June. spent. Table 113: Sport and Recreation Policy Objectives taken from IDP

128

Employees: Sport and Recreation 2015/16 2016/17 No. of Job Level Vacancies (as a No. of No. of Vacancies (full- (T-Grades) No. of Posts % of total Employees Employees time posts) equivalents) 18 – 20 1 0 0 0 15 – 17 3 1 1 0 12 – 14 0 1 0 1 100.0% 9 – 11 18 34 33 1 2.9% 6 – 8 52 88 60 28 31.8% 3– 5 199 272 200 72 26.5% 1 – 2 0 0 0 0 Total 273 396 294 102 25.8% Table 114: Employees – Sports and Recreation

Financial Performance 2016/17: Sport and Recreation Rand 2015/16 2016/17 % Variance Details Original Adjustment to Actual Actual Budget s Budget Adjustment Budget Total Operational Revenue (2,643,526) (3,507,102) (5,069,622) (4,748,502) -6.3% Expenditure: Employees 36,639,994 38,584,614 38,649,912 38,466,130 -0.4% Impairment losses on Financial Assets 0 0 0 11,582 0.0% Interest Paid 0 0 0 0 0.0% Contracted Services 6,575,548 6,683,880 8,840,725 7,713,429 -12.7% Depreciation and Provisions 6,270,925 5,610,528 10,210,528 6,759,818 -33.8% Inventory 1,255,729 931,742 1,045,454 744,835 -28.7% Operational Cost 5,294,817 19,238,196 16,446,878 14,333,084 -12.8% Total Operational Expenditure 56,037,013 71,048,960 75,193,497 68,028,878 -9.5% Operating (Surplus) / Deficit 53,393,487 67,541,858 70,123,835 63,280,376 -9.7% Table 115: Financial Performance 2016/17 – Sports and Recreation

Capital Expenditure 2016/17: Sport and Recreation Rand % Variance Total Adjustments Actual to Capital Projects Budget Project Budget Expenditure Adjustments Value Budget Total all 21,107,991 20,454,401 20,179,288 1.35% 20,454,401 Major projects Upgrading of Mbekweni B and C Sports Fields 0 5,790,428 5,790,428 0.00% 5,790,428 Water Fun Park (New Orleans) 3,500,000 5,210,179 5,210,177 0.00% 5,210,179 Cloak / Ablution Facilities Netball Fields 1,140,696 2,331,351 2,308,349 0.99% 2,331,351 Table 116: Capital Expenditure 2016/17 – Sport and Recreation

129

COMMENT ON THE PERFORMANCE OF SPORT AND RECREATION OVERALL

The planning phase for the De Kraal development was completed. Phase one of the upgrading of the Mbekweni Sport Stadium was also completed.

COMPONENT H: CORPORATE POLICY OFFICES AND OTHER SERVICES

3.19 EXECUTIVE AND COUNCIL

In terms of Section 4(2) of the Local Government: Municipal Systems Act, 2000 (Act 32 of 2000), a municipal council must, within the municipality’s financial and administrative capacity, and having regard for practical considerations:

 Exercise the municipality’s executive and legislative authority and use the resources of the municipality in the best interests of the community;  Provide, without favour or prejudice, democratic and accountable government;  Encourage the involvement of the community;  Strive to ensure that municipal services are provided to the community in a financially and environmentally sustainable manner;  Consult the community on the level, quality, range and impact of municipal services and the available options for service delivery;  Give members of the community equitable access to the municipal services to which they are entitled;  Promote and undertake development in the municipality;  Promote gender equity in the exercise of the municipality’s executive and legislative authority;  Promote a safe and healthy environment in the municipality; and  Contribute, together with other organs of state, to the progressive realisation of the fundamental rights contained in Sections 24, 25, 26, 27 and 29 of the Constitution of the Republic of South Africa, 1996 (Act 108 of 1996). Section 19(2) of the Local Government: Municipal Structures Act, 1998 (Act 117 of 1998) further imposes the following executive obligations on every municipal council. A council must annually review:

 The needs of the community;  Its priorities to meet those needs;  Its processes for involving the community;  Its organisational and delivery mechanisms for meetings those needs; and  Its overall performance in achieving the objects of local government as set out in the Constitution of the Republic of South Africa, 1996 (Act 108 of 1996).

130

In terms of the Local Government: Municipal Structures Act, 1998 (Act 117 of 1998), the municipal council must elect an executive mayor and other office-bearers. The executive mayor appoints a mayoral committee to assist the executive mayor. The municipal council may establish committees to assist the municipal council and / or the executive mayor. The Executive Mayor of Drakenstein Municipality, Cllr CJ Poole, and the Council elected in May 2011 have made substantial strides towards implementing the revised vision of Drakenstein: “A city of excellence” throughout the operations of Council and the administration in the year under review.

The Municipal Council adopted priorities for the Municipality, Executive Mayor and other political structures to meet on a regular basis in order to ensure that decision-making takes place in an efficient and effective manner.

Regular performance reports in terms of the Performance Management System, together with monthly reports to the Mayoral Committee and Council, provide these structures with continuous information on progress made with the achievement of targets as well as the implementation of decisions taken by them. These systems have been further enhanced by the issuing of tablet devices to Councillors and the procurement of an electronic system generating reports to Portfolio Committees, the Mayoral Committee and Council.

No. of Council and Committee Structures meetings Mayoral Committee 11 Special Mayoral Committee 4 Council 12 Special Council 4 Special Confidential Council 0 Corporate Services Portfolio Committee 2 Community Services Portfolio Committee 1 Finance Portfolio Committee 8 Infrastructure Services Portfolio Committee 2 Planning and Economic Development Portfolio Committee 3 Municipal Public Accounts Committee (MPAC) 2 Appeals Committee 2 Audit Committee 5 Fraud- and Risk Management Committee 4 Budget Steering Committee 4 Table 117: Service Statistics for the Executive and Council

131

The Executive and Council Policy Objectives taken from IDP Strategic Objective (SO): Governance and Stakeholder Participation Municipal Key Focus Area (KFA): Governance Structures Annual Ref. Name of Key Performance Indicator Actual Unit of Measurement Target no. (KPI) 2016/17 2016/17 Monitor Council Resolutions by Number of reports submitting progress reports on the TL13 submitted to Council per by 10 12 implementation of Council resolutions to 30 June Council at Council meetings % of AC recommendations % of AC recommendations submitted and TL1 submitted and adopted by 90% 100% adopted by Council annually Council by 30 June Attend to 100% formal public complaints % of complaints attended to TL2 100% 100% received by 30 June Table 118: The Executive and Council Policy Objectives taken from IDP

Employees: The Executive and Council 2015/16 2016/17 Job Level No. of No. of No. of Vacancies (full- Vacancies (as a (T-Grades) No. of Posts Employees Employees time % of total posts) equivalents) 18 – 20 0 0 0 0 15 – 17 7 8 8 0 12 – 14 4 5 5 0 9 – 11 0 0 0 0 6 – 8 0 0 0 0 3– 5 0 0 0 0 1 – 2 0 0 0 0 Total 11 13 13 0 Table 119: Employees – The Executive and Council

Financial Performance 2016/17: The Executive and Council Rand 2015/16 2016/17 % Variance to Details Adjustments Actual Original Budget Actual Adjustments Budget Budget Total Operational Revenue (19,668,588) (16,519,578) (21,043,091) (22,705,932) 7.9% Expenditure: Employees 26,225,724 52,002,310 31,858,649 22,467,285 -29.4% Impairment losses: Financial Assets 0 0 0 0 0.0% Interest Paid 0 0 0 0 0.0% Contracted Services 2,746,724 3,124,367 3,624,889 2,924,751 -19.3% Depreciation and Provisions 686,935 1,418,309 378,309 526,294 39.1% Inventory 4,881,847 5,967,232 5,262,362 4,996,486 -5.0% Operational Cost (16,477,358) (21,633,766) (21,192,573) (22,484,630) 6.1% Total Operational Expenditure 18,063,872 40,878,452 19,931,636 8,430,185 -57.7% Operating (Surplus) / Deficit (1,604,716) 24,358,874 (1,111,455) (14,275,747) 1,184.4% Table 120: Financial Performance 2016/17 – The Executive and Council

132

Capital Expenditure 2016/17: The Executive and Council Rand % Variance to Adjustments Actual Total Project Capital Projects Budget Adjustments Budget Expenditure Value Budget Total all 15,989,907 5,169,138 5,020,531 2.87% 5,169,138 Major projects Labour intensive capital projects 4,290,000 2,231,740 2,231,740 0.00% 2,231,740 PPE CO: Build - Acquisitions 0 1,045,357 1,045,356 0.00% 1,045,357 Intangible Assets: Acquisitions 0 588,673 588,673 0.00% 588,673 Table 121: Capital Expenditure 2016/17 – The Executive and Council

3.20 FINANCIAL SERVICES

INTRODUCTION TO FINANCIAL SERVICES

The major key performance area is the focus on long-term financial sustainability. It is imperative that the generated revenue base is of such a nature that the Municipality is able to fund its short-, medium- and long-term operations in order to ensure continuity and a financially sound and stable organisation. The major key functional areas that have been identified and linked to financial sustainability are revenue enhancement, credit control measures and expenditure management.

Although the ratios in terms of the collection of revenue have improved overall, there is a considerable amount of work to be done in order to bring the debtors book of Council to an acceptable level. The gloomy economic conditions globally have also affected the consumers’ ability to pay and most consumers are still recovering from the recessionary trends of the past few years.

133

Debt Recovery R’000 2014/15 2015/16 2016/17 Revenue Service % % % Collection Billed Collected Collection Billed Collected Collection Rate Rate Rate Property Rates 89.4% 222,560 207,167 93.0% 239,007 227,833 95.3% Electricity – B 84.7% 117,942 94,639 80.2% 145,981 113,295 77.6% Electricity – C 99.0% 620,372 597,338 96.2% 770,688 741,445 96.2% Water – B 77.7% 15,597 10,315 66.1% 19,690 13,786 70.0% Water – C 82.3% 166,361 130,553 78.4% 207,433 210,190 101.3% Sanitation 80.8% 69,050 56,483 81.8% 67,227 70,430 104.7% Refuse 76.7% 92,005 55,762 60.6% 116,015 116,320 100.2% Other 109.0% 89,281 143,482 160.7% 101,647 186,365 186.3% Totals 1,393,168 1,295,739 93.0% 1,667,688 1,679,664 100.7% Table 122: Debt Recovery

Financial Service Policy Objectives taken from IDP Strategic Objective (SO): Financial Sustainability (Municipal KPA) Municipal Key Focus Area (KFA): Revenue Enhancement/ Capital Expenditure Annual Ref. Actual Name of Key Performance Indicator (KPI) Unit of Measurement Target no. 2016/17 2016/17 % of total operating budget Raise / collect operating budget revenue as TL10 revenue raised/ received by 30 98% 101.63% per approved Budget June Spend at least 96% of the approved Capital % of approved Capital Budget TL12 Budget for the Municipality by 30 June spent for the Municipality by 30 96% 99.69% (MFMA, S10(c)) June Compile a Capital Project Implementation Capital Project Implementation TL64 Plan and submit to the MM for approval by 30 Plan developed and submitted to 1 1 June 2017 (2017/18) the MM by end June Table 123: Financial Service Policy Objectives taken from IDP

Employees: Financial Services 2015/16 2016/17 No. of Job Level Vacancies (as a No. of No. of Vacancies (full- (T-Grades) No. of Posts % of total Employees Employees time posts) equivalents) 18 – 20 2 4 3 1 75% 15 – 17 117 51 39 12 76.47% 12 – 14 15 33 24 9 72.73% 9 – 11 6 23 6 18 26.09% 6 – 8 5 50 28 22 56.00% 3– 5 8 66 57 9 86.36% 1 – 2 2 0 0 0 0% Total 155 227 157 71 69.16% Table 124: Employees – Financial Services

134

Financial Performance 2016/17: Financial Services Rand 2015/16 2016/17 % Variance Details Original Adjustments to Actual Actual Budget Budget Adjustments Budget Total Operational Revenue (248,933,367) (242,582,042) (241,532,042) (285,670,585) 18.2% Expenditure: Employees 10,307,401 14,880,480 12,564,802 10,462,335 -16.7% Impairment Losses on Fin. Assets 9,653,419 5,011,396 8,781,396 8,991,891 2.4% Interest Paid 364,977 0 430,000 425,971 -0.9% Contracted Services 6,632,650 10,035,742 8,031,797 7,245,599 -9.7% Depreciation and Provisions 548,038 3,120,633 3,120,633 1,812,583 -41.9% Inventory 1,571,370 1,449,549 1,806,159 1,105,332 -38.8% Operational Cost 30,050,915 36,487,042 46,065,081 49,337,755 7.1% Total Operational Expenditure 59,128,770 70,984,842 80,799,868 79,381,466 -1.7% Operating (Surplus) / Deficit (189,804,597) (171,597,200) (160,732,174) (206,289,119) 28.3% Table 125: Financial Performance 2016/17 – Financial Services

Capital Expenditure 2016/17: Financial Services Rand % Variance to Total Adjustments Actual Capital Projects Budget Adjustment Project Budget Expenditure Budget Value Total all 0 438,913 438,471 0.10% 438,913 Major Projects Buildings: New stores 0 223,549 223,549 0.00% 223,549 PPE CO: Build - Acquisitions 0 135,897 135,897 0.00% 135,897 Operational Infrastructure Allocations 0 79,467 79,026 0.56% 79,467 Table 126: Capital Expenditure 2016/17 – Financial Services

COMMENT ON THE PERFORMANCE OF FINANCIAL SERVICES OVERALL

Financial Services implemented all their capital projects during the year under review. The total

capital budget spending rate for Financial Services is calculated at 99.9% of the allocated Capital

Budget. This Department can confirm that its targets are set out in the IDP schedule and can be obtained with the approved budget provision.

3.21 HUMAN RESOURCE SERVICES

The organisational review included a restructuring of the Human Resources Section to be better equipped for the challenges it faces. Twenty additional posts have been created in the proposed structure for the HR department and there are currently twenty-four employees on the current structure.

135

Ninety two (92) percent of Human Resources job descriptions have been evaluated. The rest of the job descriptions are new on the structure and will be evaluated as soon as they are developed. The status will change with the adoption of the new structure as there are new posts added on the structure. The HR departments is also in a process of implementing received TASK outcomes from the Provincial TASK Committee. A TASK policy was drafted for adoption in the 2017/18 financial year.

The Municipality has complied with the Employment Equity Act (EEA) by ensuring that the Employment Equity Report was prepared and submitted on 1 October 2016 to the Department of labour. A total number of 154 employees were appointed during this financial year. The Workplace Skills Plan and Annual report was also submitted on 30 April 2017. The Municipality is committed to the principles of the employment equity legislation and will continue to strive to appoint suitably qualified applicants while ensuring that the workforce is representative of the clients it serves.

Service Statistics for Human Resource Services

Submission Date To Document 30 April annually LGSETA Workplace Skills Plan 30 April annually LGSETA Annual Training Report 01 October annually Department of Labour Employment Equity Report 14 August annually MEC Local Government Sec 56/7 Performance Agreements Table 127: Service Statistics for Human Resources Services

Human Resource Services Policy Objectives taken from IDP Strategic Objective (SO): Institutional Transformation Municipal Key Focus Area (KFA): Organisational Structure Annual Ref. Name of Key Performance Actual Unit of Measurement Target no. Indicator (KPI) 2016/17 2016/17 (NKPI - 5) The number of people Report on the number of people from employment equity target from employment equity groups groups employed in the three employed in the three highest TL16 1 Report 1 Report highest levels of management in levels of management submitted compliance with the Municipality’s to the Office of the City Manager approved employment equity plan by 30 June Table 128: Human Resource Services Policy Objectives taken from IDP

136

Employees: Human Resource Services 2015/16 2016/17 No. of Job Level Vacancies No. of No. of Vacancies (T-Grades) No. of Posts (as a % of Employees Employees (full-time total posts) equivalents) 18 – 20 1 1 1 0 15 – 17 11 8 7 1 12.5% 12 – 14 1 0 0 0 9 – 11 5 12 11 1 8.3% 6 – 8 4 5 5 0 3– 5 0 0 0 0 1 – 2 0 0 0 0 Total 22 26 24 2 7.7% Table 129: Employees – Human Resource Services

Financial Performance 2016/17: Human Resource Services Rand 2015/16 2016/17 % Variance to Details Original Adjustments Actual Actual Adjustments Budget Budget Budget Total Operational Revenue (1,322,220) (1,582,500) (4,320,797) (1,753,064) -59.4% Expenditure: Employees (3,086,402) (2,448,218) (2,434,188) (2,010,852) -17.3% Impairment losses: Fin. Assets 0 0 0 0 0.0% Interest Paid 0 0 0 0 0.0% Contracted Services 2,700,319 2,600,226 2,878,226 2,654,722 -7.7% Depreciation and Provisions 128,844 168,325 168,325 159,334 -5.3% Inventory 146,639 225,410 176,280 134,291 -23.8% Operational Cost 3,990,325 10,171,715 11,865,192 9,524,427 -19.7% Total Operational Expenditure 3,879,725 10,717,458 12,653,835 10,461,923 -17.3% Operating (Surplus) / Deficit 2,557,505 9,134,958 8,333,038 8,708,859 4.5% Table 130: Financial Performance 2016/17 – Human Resource Services

Capital Expenditure 2016/17: Human Resource Services Rand % Variance Adjustments Actual Total Project Capital Projects Budget Adjustments Budget Expenditure Value Budget Total all 567,770 650,889 635,165 2.42% 650,889 Major projects ICT Equipment: Time & Attendance System: Office Building 0 620,989 620,989 0.00% 620,989 Buildings: Refurbishing Training Centre: 537,770 0 0 #DIV/0! 0 Table 131: Expenditure Capital 2016/17 – Human Resource Services

137

THE PERFORMANCE OF HUMAN RESOURCE SERVICES OVERALL

The performance of HR is compromised by the significant backlog in job descriptions job evaluations. The necessary interventions have been put in place and the backlogs will be urgently

addressed.

Self-service was further implemented to computer users for the rest of in 2016/17. The focus of the project is online application for leave, viewing of leave balances, view of basic personal details and on-line viewing of pay- slips. Self-service has been rolled out to computer users across directorates and about 15% of users must still be registered on the system. Thereafter online application will be rolled out to non-computer users. There are currently some HR/ Payroll system and IT technical issues that are hindering the full implementation of self-service functionality. These will be resolved in the 2017/18 financial year. In addition, the Time Keeper System is working well, which assists managers and supervisors to keep track of the movements of their employees in the building and the effective management of time management of employees in terms of arriving in the morning and leaving in the afternoon. Employees will be registered on the system as soon as infrastructure is implemented in other municipal buildings. The Time Keeper System is installed at the Civic Centre, Fire Services (main

office), Mbekweni Fire office, Wellington Civic Centre, Electricity Building and Market Street.

3.22 INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) SERVICES

This year was an extremely busy period for the ICT Department. In adherence to good practice, two initiatives identified during the review of our ICT Strategic Information and Communication Technology Plan was successfully implemented.

ICT Governance and Administration The financial year was primarily earmarked by the development, approval and implementation of the ICT Management Framework and related policies. In this regard, the following policies were adopted by the Council on 29 March 2017:

 ICT Management Framework;  ICT Access Management Policy;  ICT Change Management Policy;  ICT Service Provider Management Framework;  ICT Technology Technical Framework;  Business and ICT Service Level Agreement;  ICT Continuity Policy; and  ICT Backup and Restore Policy.

138

The implementation of most of these policies and frameworks commenced before it was approved. Its implementation were tested for compliance via Internal Audit in April 2017 with favourable outcomes.

ICT Operations and Support Operations & Support is responsible for managing the ICT operations environment and providing facilities to ensure the secure and optimal availability of all ICT infrastructure, telecommunications systems and data at Drakenstein. All ICT hardware deployed within Drakenstein Municipality resides under this section.

The aim is to ensure that the infrastructure and resources designated to Enterprise Management are operated in accordance with the ICT goals, strategies and governing policies thereby providing an effective, secure and robust service to Drakenstein Municipality and its customers.

Support is provided as follows:

 Network infrastructure capable of handling our data and voice requirements to most of the depots including Gouda and Saron;  Voice IP Telephone system to all the connected sites mentioned above ensuring significant savings in our telecommunication costs;  Install, maintain and run all our server and storage requirements form a central installation in Paarl;  Install, maintain and service all the computer requirements including, PC’s, Laptops, Printers and other devices; and  Inform, assist and advise on the acquisition, upgrades and or replacement of systems and technology.

Some interesting statistics from ICT Operations and Support:  There are 932 computer users in the Drakenstein Municipality;  Municipal employees receive an average of 8,500 emails per day;  Municipal employees send an average of 2,600 emails per day;  About 15 Tb data is backed up;  There are 667 VOIP telephone handsets; and  There are 82 virtual servers serving various applications.

Challenges Challenges experienced is the steady increase in users, equipment and technology that requires maintenance and support. The support staff to personnel ratio of 1:233 is significantly below the norm of 1:75.

139

With the constant advances made in technology there is a constant need for training to be able to ensure efficient support.

Information Systems Information Systems is primarily responsible for:  Business process redesign and optimisation;  Management of current databases and business application systems developed in- house;  Development and Maintenance of an Enterprise Architecture in Business Application Systems; and  Strategic management of municipal GIS.

Operationally the section provides continuous support for the development, enhancement and maintenance of more than 200 application systems and databases throughout the municipality.

From a strategic point of view, the financial year saw the development of the Systems Development Life cycle (SDLC) Framework. The implementation and compliance of the SDLC Framework will lead to standardization, ownership of key business processes and a reduced risk of fruitless-and-wasteful expenditure.

Service Statistics for ICT Services

Type Calls logged Completed within time % Computer 568 541 95.25 Telephone 68 64 94.12 Table 132: Service Statistics for ICT

ICT Services Policy Objectives taken from IDP Strategic Objective (SO): Institutional Transformation (Municipal KPA) Municipal Key Focus Area (KFA): Systems and Technology Annual Ref. Name of Key Performance Indicator Actual Unit of Measurement Target no. (KPI) 2016/17 2016/17 Number of policies submitted Review and submit to MAYCO the ICT TL20 to MAYCO for approval by 4 9 Policies for approval by 31 March. 31 March. Table 133: ICT Services Policy Objectives taken from IDP

140

Employees: ICT Services 2015/16 2016/17 No. of Job Level Vacancies as No. of No. of Vacancies (full- (T-Grades) No. of Posts a % of total Employees Employees time posts) equivalents) 18 – 20 0 0 0 0 15 – 17 0 1 0 1 100.0% 12 – 14 3 3 3 0 9 – 11 4 6 3 3 50.0% 6 – 8 0 1 1 0 3– 5 3 4 4 0 1 – 2 0 0 0 0 Total 10 15 11 4 26.7% Table 134: Employees – ICT Services

Financial Performance 2016/17: ICT Services Rand 2015/16 2016/17 % Variance to Details Original Adjustments Actual Actual Adjustments Budget Budget Budget Total Operational Revenue 0 0 0 0 0.0% Expenditure: Employees 798,086 554,073 2,286,456 2,311,355 1.0% Impairment losses on Financial Assets 0 0 43,422 43,422 0.0% Interest Paid 0 0 0 0 0.0% Contracted Services 1,135,274 1,337,188 2,096,484 908,904 -56.6% Depreciation and Provisions 3,193,295 3,016,488 3,016,488 3,234,401 7.2% Inventory 58,834 205,375 180,375 82,068 -54.5% Operational Cost 3,137,700 3,999,317 4,097,610 3,127,914 -23.6% Total Operational Expenditure 8,323,189 9,112,441 11,720,835 9,708,063 -17.1% Operating (Surplus) / Deficit 8,323,189 9,112,441 11,720,835 9,708,063 -17.1% Table 135: Financial Performance 2016/17 – ICT Services

Capital Expenditure 2016/17: ICT Services Rand % Variance to Adjustments Actual Total Project Capital Projects Budget Adjustments Budget Expenditure Value Budget Total all 3,800,000 4,871,379 4,867,648 0.08% 4,871,379 Major projects ICT Equipment: Computer Related 2,750,000 3,901,212 3,901,212 0.00% 3,901,212 Buildings: Office Alterations: Data Centre 0 238,483 238,482 0.00% 238,483 Table 136: Capital Expenditure 2016/17 – ICT Services

141

COMMENT ON THE PERFORMANCE OF ICT SERVICES OVERALL

The ICT Department continuously strives to keep abreast of technological and good practices

development in order to ensure that information systems support municipal service delivery in

general. All the key performance indicators were met for the different divisions in the ICT Department for the 2016/17 financial year.

3.23 PROPERTY, LEGAL, RISK MANAGEMENT AND PROCUREMENT

ESTATES AND PROPERTY SECTION

Facility and Property Management The activities of this section contribute towards economic growth and development as well as social and community development by making properties available through the sale or lease thereof, and thereby creating economic opportunities while also providing for the development and empowerment of the poor and most vulnerable. It further contributes to institutional transformation through the maintenance and development of office facilities and amenities that are required to render services.

The main objective of the section is however, to administer Council’s property portfolio and to ensure that the Municipality’s property transactions are well administered, which include the lease or hire of immovable assets, the granting or obtaining of rights in properties as well as the alienation or acquisition thereof.

Several Capital projects dealing with the upgrading of offices and facilities were also done.

Service Statistics for Property

Properties sold To Purpose Portion of Erf 4921, Paarl Fabrinox Properties (Pty)Ltd Extension of business Erf 16814, Paarl Kiddies University ECD Centre Erven 8270, 10996, Paarl Carheim (Pty)Ltd Parking Portion of Erf 34 Kovacs 106 (Pty)Ltd Industrial Portion of Erf 4536, Wellington Owner of Erf 4537, Wellington Extension of property Portion of Erf 4916, Paarl Enviro Paper & Pulp Suppliers CC Extension of property Erf 2389, Paarl Owner of Erf 2478, Paarl Extension of property Portion of Erf 4916, Paarl Grahams Sprayworks CC Extension of property Portion of Erf 19544,Paarl Gerhard Visagie Family Trust Extension of property Erf 1213, Gouda Gouda Educare Centre NPO Educare Centre Table 137: Properties sold

142

Properties leased To Purpose Erf 593, Paarl Visarende Jukskei Club Sport Clubhouse and courts Wellington Community Learning Portion of Erf 34, Wellington Centre NPO Learning centre Erven 1294 &1295, Wellington Wamakersvallei Voortrekkers NPO Clubhouse Erf 5573, Paarl T Pegram Commercial Erf 3821, Paarl Drakenstein Heemkring NPO Heritage research Paarl Valley Pigeon Club and Paarl Portion of Erf 593, Paarl District Homing Club Sport Clubhouse Erf 1866, Paarl Paarl Recreational Club NPO Recreational Hall Erf 33035, Paarl Paarl Canoe Club Sport Clubhouse Erf 645, Mbekweni Wagon of Hope NPO Health Services Portion of Erf 8431, Paarl Paarl Squash Club Sport Clubhouse Erf 5390, Paarl Paarl Huguenot Tennis Sport Clubhouse and Courts Erf 31005, Paarl Paarl Tennis Club Sport Clubhouse and Courts Portion of Erf 1667, Wellington Wellington G Voucher-Project NPO Food programme Erf 1113, Wellington Wellington Cricket Club Clubhouse and cricket field Mbekweni Community Health Erf 645, Mbekweni Workers NPO Health services Portion of Erf 1, Paarl Sentech SOC Ltd Bus Transmitting station MTN Mobile Telecommunication Erf 4399, Wellington Network Transmitting station Portion of Erf 34, Wellington SPCA – Wellington NPO Animal protection Table 138: Properties leased

Community Hall Usage

Paarl Town Huguenot Mbekweni Wellington Colibri Fairyland Usage Gouda Hall Hall Hall Hall Town Hall Hall Hall SASSA 0 50 59 48 0 0 0 Council 2 3 4 10 12 3 0 Birthdays 9 12 5 12 7 2 9 Weddings 11 26 3 8 3 2 0 Dances 14 20 5 6 15 11 0 Matric Functions 13 0 0 2 0 0 0 Meetings and workshops 15 87 59 23 25 7 35 Farewells 3 0 2 5 2 0 1 Shows/churches 10 19 40 13 13 53 69 Concerts 22 23 10 5 3 6 5 UIF 0 92 0 0 0 0 0 Table 139: Community Hall Usage

143

Capital and Maintenance Projects

Project Description Cost Rand Floor tiles Wellington Civic 78,741 “Beta Fence” Wellington Squash Club 129,000 Palisade fence Happy Toddlers 200,000 Thatch roof repair Paarl Museum 178,340 Wamakersvallei Training Centre paint and repairs 36,058 Repairs at Shanoor erf 5573, Paarl 46,228 Wooden Stage Erf 1750, Mbekweni 12,713 Roof and ceiling repair Mbekweni Sports Hall 130,830 Civic Centre damaged soffits repair 31,277 Erf 3821 Paarl Paint outside 32,093 Steel shelving Civic Centre 37,144 Round bar fencing Wellington Civic Centre 23,225 Repair and paint Newton Clinic building 29,440 Service and repair fire sprinkler system Paarl Museum 160,087 Paint Old Police Station Mbekweni 34,352 Erf 1967, Wellington replace doors 19,713 Fence at Old Rent Office Erf 6136, Paarl 40,455 Paving Erf 1750, Mbekweni 250,000 Office alterations first floor Civic Centre 695,624 Table 140: Capital and Maintenance Projects

Property Policy Objectives taken from IDP Strategic Objective (SO): Institutional Transformation (Municipal KPA) Municipal Key Focus Area (KFA): Facilities Annual Ref. Actual Name of Key Performance Indicator (KPI) Unit of Measurement Target no. 2016/17 2016/17 % of land applications (rent and or selling) % of land applications TL21 submitted to Mayoral Committee within 3 80% 80.00% submitted to MAYCO. months from date of application. Table 141: Property Policy Objectives taken from IDP

Employees: Property 2015/16 2016/17 No. of Job Level Vacancies (as No. of No. of Vacancies (full- (T-Grades) No. of Posts a % of total Employees Employees time posts) equivalents) 18 – 20 12 13 12 1 7.7% 15 – 17 4 6 4 2 33.3% 12 – 14 3 4 3 1 25.0% 9 – 11 1 1 1 0 6 – 8 1 1 1 0 3– 5 0 0 0 0 1 – 2 0 0 0 0 Total 21 25 21 4 16.0% Table 142: Employees – Property

144

LEGAL SERVICES Legal Services within the Municipality supports the Council and administration with legal advice and support. The organisational structure provides for the strengthening of the Legal Service Unit. The post of the legal advisor was filled. The other two positions remained vacant for the year under review. The administrative support of the section is currently performed by one permanent staff member. During this period, external legal service providers provided a wide spectrum of legal services such as representation in litigation, legal opinions, contracts and agreements.

Employees: Legal Services 2015/16 2016/17 No. of Job Level Vacancies (as No. of No. of Vacancies (full- (T-Grades) No. of Posts a % of total Employees Employees time posts) equivalents) 18 – 20 0 0 0 0 15 – 17 0 0 0 0 12 – 14 1 1 1 0 9 – 11 0 0 0 0 6 – 8 0 0 0 0 3– 5 1 3 1 2 66.7% 1 – 2 0 0 0 0 Total 2 4 2 2 50.0% Table 143: Employees – Legal Services

Employees: Risk Management 2015/16 2016/17 No. of Job Level Vacancies No. of No. of Vacancies (T-Grades) No. of Posts (as a % of Employees Employees (full-time total posts) equivalents) 18 – 20 0 0 0 0 15 – 17 1 1 1 0 12 – 14 0 1 1 0 9 – 11 0 1 1 0 6 – 8 0 0 0 0 3– 5 0 0 0 0 1 – 2 0 0 0 0 Total 1 3 3 0 0.0% Table 144: Employees: Risk Management

145

Employees: Procurement Services 2015/16 2016/17 No. of Job Level Vacancies No. of No. of Vacancies (T-Grades) No. of Posts (as a % of Employees Employees (full-time total posts) equivalents) 18 – 20 3 2 1 1 50.0% 15 – 17 22 20 17 3 15.0% 12 – 14 5 14 13 1 7.1% 9 – 11 1 7 4 3 42.9% 6 – 8 3 1 1 0 3– 5 1 1 1 0 1 – 2 0 0 0 0 Total 35 45 37 8 17.8% Table 145: Employees: Procurement Services

Financial Performance 2016/17: Property, Legal, Risk Management and Procurement Services Rand 2015/16 2016/17 % Variance to Details Original Adjustments Actual Actual Adjustments Budget Budget Budget Total Operational Revenue (3,292,467) (3,108,534) (3,131,595) (3,292,467) 5.1% Expenditure: Employees 6,795,931 5,741,152 6,856,485 6,795,931 -0.8% Impairment losses on financial assets 0 0 0 0 0.0% Interest Paid 0 0 0 0 0.0% Contracted Services 3,516,013 1,859,211 3,655,854 3,516,013 -3.8% Depreciation & Provisions 11,986,427 8,418,600 37,738 600 11,986,427 -68.2% Inventory 437,093 217,414 441,027 437,093 -0.8% Operational Cost 2,979,716 4,084,229 5,540,911 2,979,716 -46.2% Total Operational Expenditure 25,715,180 20,320,606 54,232,877 25,715,180 -52.5% Operating (Surplus) / Deficit 22,422,713 17,212,072 51,101,282 22,422,713 -56.1% Table 146: Financial Performance 2016/17 – Property, Legal, Risk Management and Procurement Services

Capital Expenditure 2016/17: Property Rand % Variance to Adjustments Actual Total Project Capital Projects Budget Adjustments Budget Expenditure Value Budget Total all 4,900,000 6,213,540 6,153,621 0.96% 6,213,540 Major projects Office Alterations all Floors 0 4,943 4,943 0.01% 4,943 Office Building: Upgrading Civic Centre 3,200,000 5,345,941 5,345,941 0.00% 5,345,941 Land Acquisition 0 384,246 384,246 0.00% 384,246 Table 147: Capital Expenditure 2016/17 – Property

146

COMMENT ON THE PERFORMANCE OF PROPERTY SERVICES OVERALL

The Property Services Section continually strives to improve property management practices. During the year improvements in operational systems were implemented to enhance efficiency and service delivery by this unit, comprising of:  Lease and sale of properties – increased focus on the monitoring of development on land sold;

 Staff capacity. The staff capacity was assessed and reviewed and an amendment to the Organisational Structure was approved to make provision for additional capacity; and  Registration of title deeds – staff and service providers (attorneys) appointed and administrative arrangements made to speed up registration of transfers in housing projects.

Various maintenance and capital projects as per Table 145 were completed during the year. Other capital projects included:  Continuation with the upgrading of the air-conditioning system in the Civic Centre;  Office alterations on the first floor of the Civic Centre were completed; and  Installation of a fire detection system in the Civic Centre was completed.

COMMENT ON THE PERFORMANCE OF LEGAL SERVICES OVERALL The Legal Services Section of the Municipality plays a supporting role in protecting the Municipality from legal action by way of internal and external legal support services. Legal action is also instituted by the Municipality, where necessary, to enforce municipal legislation and contractual obligations.

The Municipality is using the services of an external service provider to assist the Municipality in administering its own legislation through the development and promulgation of new legislation as well as the review of existing legislation. The Municipal Code encompasses all of the Municipality’s own legislation as well as policies and are constantly updated and reviewed.

The position of one of the two Legal Advisors has been filled. External legal service providers who provide a wide spectrum of legal services such as representation in litigation, legal opinions, contracts and agreements are also used and in this way it was ensured that the required performance was maintained by duly protecting the interests of the Municipality.

147

Chapter 1: Executive Mayor’s Foreword and Executive Summary

Chapter 2: Governance

Chapter 3: Service Delivery Performance (Performance Report)

Chapter 4: Organisational Development Performance

Chapter 5: Financial Performance

Chapter 6: Auditor-General Audit Findings

Appendices

CHAPTER 4: ORGANISATIONAL DEVELOPMENT PERFORMANCE  Component A: Introduction to the Municipal Personnel  Component B: Managing the Municipal Workforce  Component C: Capacitating the Municipal Workforce  Component D: Managing the Workforce Expenditure

148

INTRODUCTION

The organisational development function falls under the Human Resource Department. Its main objectives are to manage organisational design and business modelling, coordinate culture and change management, administer job descriptions, job evaluation system management and to develop and maintain an effective employee efficiency system and awards process. Its focus is also the development of employees to ensure that Drakenstein Municipality has a skilled workforce.

The HR department is also responsible for Employee Wellness and annually host the following events:

 Employee Wellness;  Women’s Day;  Employee Excellence Awards; and  Christmas decorations.

COMPONENT A: INTRODUCTION TO THE MUNICIPAL PERSONNELEMPLOYMENT EQUITY

4.1 EMPLOYMENT EQUITY

Information on employment equity targets and actual results by race classification, gender classification and within the occupational levels are set out in Tables 146 to 148 below. The overall target achieved for race and gender classification is 65% for the 1,765 employees in service at year-end.

Employment Equity Targets / Actuals by Race Classification 2016/2017 Race Classification Target June Actual June Target Achieved African 751 451 60% Coloured 1,417 1,174 83% Indian 4 5 125% Whites 525 135 26% Totals 2,697 1,765 65% Table 148: Employment Equity Targets / Actuals by Race Classification

Employment Equity Targets / Actuals by Gender Classification 2016/2017 Gender Classification Target June Actual June Target Achieved Male 1,384 1,212 88% Female 1,313 553 42% Totals 2,697 1,765 65% Table 149: Employment Equity Targets / Actuals by Gender Classification

149

Number of Employees by Race and Gender within the Occupational Levels

Male Female Grand Occupational Level Description A C I W Totals A C I W Totals Totals Top Management 0 2 0 3 5 0 0 0 1 1 6 Senior Management 2 10 0 17 29 4 7 0 2 13 42 Professionally qualified and experienced specialists and mid- management 6 33 0 14 53 5 14 1 5 25 78 Skilled technical and academically qualified workers, junior management, supervisors, foremen and superintendents 19 121 0 32 172 13 37 0 14 64 236 Semi-skilled and discretionary decision making 105 372 1 15 493 55 185 2 21 263 756 Unskilled and defined decision making 164 287 1 8 460 78 106 0 3 187 647 Total Employees 296 825 2 89 1,212 155 349 3 46 553 1,765 Table 150: Number employees by Race and Gender within the Occupational Levels

4.2 EMPLOYEE TOTALS, TURNOVER AND VACANCIES Employees 2015/16 2016/17 No. of Description of Departments / No. of Approved No. of No. of % Divisions Employed Posts Employed Vacancies Vacancies Water 80 155 84 71 45.8% Wastewater (Sanitation) 107 186 108 78 41.9% Electricity 137 231 126 105 45.5% Waste Management 163 237 166 71 29.9% Housing 79 105 74 31 29.5% Wastewater (Stormwater Drainage) 54 86 57 29 33.7% Roads 89 164 94 70 42.7% Transport 23 40 23 17 42.5% Planning 44 78 46 32 41.0% Local Economic Development 7 8 7 1 12.5% Community and Social Services 95 138 101 37 26.8% Environmental Protection 4 6 4 2 33.3% Security and Safety 175 325 165 160 49.2% Sport and Recreation 281 477 312 165 34.6% Corporate, Finance and other 330 461 341 120 26.0% Total 1,668 2,697 1,708 989 36.7% Table 151: Total number of employees

150

Vacancy Rate 2016/17 *Total number of Designations *Vacancies *Vacancy rate approved posts

City Manager 1 0 CFO 1 0 Section 57 Managers 4 0 Firefighters 108 47 43.5% Senior Management: Levels 13-15 51 12 23.5% Senior Management: Levels 13-15 (Finance) 9 0 Highly skilled supervision: Levels 9-12 89 36 40.4% Highly skilled supervision: Levels 9-12 (Finance) 16 6 37.5% Total 279 101 36.2% *Note: These figures are based on the holding structure. Table 152: Vacancy Rate 2016/17

Turnover Rate

Number of employees Number of terminations Details at year-end during the year Turnover Rate* 2014/15 1,711 137 8.0% 2015/16 1,711 98 5.7% 2016/17 1,698 91 5.3% Table 153: Turnover Rate

COMMENT ON VACANCIES AND TURNOVER The Municipality has been fortunate to attract highly skilled senior managers and a City Manager to head the organisation. Three Executive Directors (including the Chief Financial Officer) and a City Manager were appointed in the financial year. The Municipality is currently actively in a process of recruiting employees to fill critical vacancies across all the departments. Council has approved additional budgeted funds to fill these positions.

COMPONENT B: MANAGING THE MUNICIPAL WORKFORCE

The Municipality has been fortunate to attract highly skilled senior managers and a City Manager to head the organisation; it is currently actively recruiting employees to fill other critical vacancies and to populate the new structure with suitably qualified employees in the posts on the new organogram. The focus of the municipality in the second semester of the financial year was on staff morale. Many of the employees were unhappy because of not having information on TASK. Roadshows were initiated by the newly appointed Executive Director of Corporate Services with some members of the Human Resources Division. Employees have also been involved in writing their job descriptions and also been consulted on the proposed new structure. Employees who have been waiting on their TASK outcomes

151

letters were also given their letters between May and June 2017. The turnover rate was 5.3% for the 2016/17 financial year.

4.3 POLICIES HR Policies and Plans Date adopted by Name of policy Completed Reviewed Council or comment on failure to adopt 1 Education and Training Policy 27/11/2008 Under review 27/11/2008 Performance Management Policy 2 Framework 30/08/2007 Reviewed 21/05/2014 Recruitment, Selection and Appointments 3 Policy 27/11/2008 Reviewed 21/05/2014 4 Sexual Harassment Policy 25/10/2007 Under review 25/10/2007 5 Smoking Policy 30/07/2002 Under review 30/07/2002 6 Rehabilitation/Alcohol Policy 28/09/2006 Under review 28/09/2006 7 Placement Policy 30/12/2012 Under review 13/12/2012 8 Appointment of Temporary Staff Policy 20/09/2013 Under review Still in draft form 9 Private Work Policy 13/12/2012 Under review 13/12/2012 Policy by agreement with trade unions to be 10 Accelerated Promotion Policy 20/06/2012 abolished 20/06/2012 11 Overtime Policy 30/05/2012 Under review 30/06/2012 12 Education and Training Policy 27/11/2008 Under review 27/11/2008 Table 154: HR Policies and Plans

There is a drive to write new or additional HR policies, the above mentioned policies that are under review are still serving in other committees before submission to Council for adoption.

4.4 INJURIES, SICKNESS AND SUSPENSIONS

*Percentage of Number of Number of Average injury total employees Type of injury injury leave leave days / employees taking injury days taken employee using injury leave leave

Required basic medical attention only 133 69 1.9 4.0% Temporary total disablement 868 297 2.9 17.4% Permanent disablement 0 0 Total 1,001 366 2.7 21.4% *Based on total number of employees of 1,708 as per Table 146 Table 155: Number and cost of injuries on duty

152

Number of days of sick leave (excluding injuries on duty) Proportion Average of sick leave No. of Total no. of Total no. of days sick without employees Designations sick leave employees leave taken medical using sick days in posts per certification leave employee %

Lower skilled (levels 1 - 2) 6,243 33% 560 613 11.1 Skilled (levels 3 - 5) 8,017 28% 715 750 11.2 Highly skilled production (Levels 6 - 8) 2,099 25% 211 230 9.9 Highly skilled supervision (Levels 9 - 12) 726 17% 61 62 11.9 Senior Management (levels 13 – 15) 287 23% 39 47 7.4 MM and S57/6 24 21% 4 6 6.0 Total 17,396 1,590 1,708 10.9 Table 156: Number of days of sick leave (excluding injuries on duty)

Average number of days sick leave (excl IOD) 14 12 10

8 2014/15 6 2015/16 4 2016/17 2 0 Levels 1-2 Levels 3-5 Levels 6-8 Levels 9-12 Senior MM and S57 Management

Graph 15: Average number of day’s sick leave

No deaths or major injuries at work were experienced in the reporting period. The Health and Safety Officer and line management are encouraged to continuously increase awareness amongst employees in order to minimise the occurrence of injuries. Accredited training in respect of Occupational Health and Safety is implemented annually for health and safety representatives and employees. This assists in increasing awareness and reduces health and safety accidents. Personnel records of the number of sick leave instances are recorded and kept in the HR/payroll system. Trained first aiders are available at all sections and first aid kits are provided and continuously replenished to ensure that first aid is applied in the case of an incident occurring.

153

Number and period of suspensions Nature of Details of disciplinary action Date of Position alleged taken or status of case and Date finalised suspension misconduct reasons why not finalised Dismissed following a disciplinary Dismissed Hall Caretaker Dishonesty 19/11/2015 hearing. 03/05/2017 Dismissed following a disciplinary Dismissed Foreman Dishonesty 09/05/2016 hearing. 28/07/2017 Sanction to be Gross Hearing started on 13/03/2017 – Superintendent 28/09/2016 imposed on Negligence Found guilty. 28/08/2017 Sanction to be Senior Gross Hearing started on 13/03/2017 – 28/09/2016 imposed on Superintendent Negligence Found guilty. 28/08/2017 Hearing started on 24/07/2017 – Sports Liaison Dishonesty & Separation negotiations 19/10/2016 Still in process Officer Insubordination attempted and aborted before hearing Hearing started on 06/02/2017. Disruptive Initial chairperson withdrew in the Typist Clerk 14/11/2016 Still in process behaviour middle of the hearing and the hearing had to be restarted Hearing started on 06/02/2017. Disruptive Initial chairperson withdrew in the General Worker 14/11/2016 Still in process behaviour middle of the hearing and the hearing had to be restarted Table 157: Number and period of suspension

4.5 PERFORMANCE REWARDS Performance Rewards by Gender

Total number of Number of Designations Gender employees in beneficiaries group

Female *None *None Lower skilled (Levels 1 – 2) Male *None *None Female *None *None Skilled (Levels 3 – 5) Male *None *None Female *None *None Highly skilled production (level 6 – 8) Male *None *None Female *None *None Highly skilled supervision (levels 9 – 12) Male *None *None Female *None *None Senior Management (Levels 13 – 20) Male *None *None Female 1 0 MM and S57 Male 5 5 Total 6 5 Has the statutory municipal calculator been used as part of the evaluation process? Yes Table 158: Performance Rewards by Gender *All permanent employees, except the City Manager and the Senior Managers reporting directly to him, receives a 13th cheque as part of their contract of employment

154

Performance Rewards Performance rewards for the 2015/16 financial year was paid out to the City Manager and four Senior Managers reporting directly to him during the 2016/17 financial year. Provision was made for the 2016/17 performance bonuses to be paid out in the 2017/18 financial year to the City Manager and the five Senior Managers reporting directly to him. All other permanently employed staff were entitled to a 13th cheque that was paid out to them. The 13th cheque is a contract of employment benefit and is not subject to a performance evaluation. However, a 13th cheque may be withheld but only as a punitive measure based on a found guilty sanction imposed in a disciplinary process.

COMPONENT C: CAPACITATING THE MUNICIPAL WORKFORCE

The municipality continuously prioritizes education, training and development in order to ensure that its employees acquire necessary knowledge, skills and competencies that enables advancement of its strategic mandate. The below focus areas were successfully implemented during 2016/17 and has set a tone for Drakenstein as a learning organisation:

 Implementation of the Workplace Skills Plan 2016/17 and ninety-nine percent (99%) incurred expenditure from the Council Training Budget;  LGSETA Discretionary Funding 2016/17 approval granted towards twenty-four (24) learning programmes initiated for the financial year. The programmes are full qualifications and learnership’s targeting critical municipal areas like Integrated Development and Planning, Financial Viability, Infra-Structure and Community Development; and  Implementation of Employee Bursaries Programme 2016/17, Work Integrated Learning and Vacation Work for students, and Mayoral Bursary Programme for unemployed students / youth.

Some of the critical multiyear projects such as the Municipal Finance Management Programme, National Certificate in Civil Construction, Plumbing Learnership, Electrical Apprenticeship, Road Construction Works NQF 2 and NQF4 Learnerships concluded during 2016/17 financial year.

The Municipality budgeted and granted an amount of R 250,000 for twenty-one (21) internal employees towards bursaries. Study fields included Human Resources, Town and Regional Planning, Engineering, Electrical Engineering, Disaster Management and Artisan Development.

155

End of financial year status 2016/17

Project Initial Budget Actual Expenditure Reasons for balance R 182,212 Students declined afforded bursaries Internal Bursaries R 250,000 (72.8%) due late registration Table 159: Internal bursary fund

Skills Matrix Number of skilled employees required and actual as at 30 June 2017 Skills programmes and other short Management Level Gender Learner ships courses Total Actual Actual Actual 2017 Target 2017 Target 2017 Target Female ------CM and S57 Male 2 2 - - 2 2 Councillors, Senior Female 11 11 68 68 79 79 Officials and Managers Male 30 30 67 67 97 97 Technicians and Female 0 0 4 4 4 4 Associate Professionals Male 11 11 77 77 88 88 Female 9 9 11 11 20 20 Professionals Male 13 13 3 3 16 16 Female 20 20 83 83 103 103 Sub-Totals Male 56 56 147 147 203 203 Total 76 76 230 230 306 306 Table 160: Skills Matrix

Financial Competency Development: Progress Report Total number Total number Total number Competency of officials of officials of officials assessments whose that meet employed by completed performance prescribed Description municipality for agreements competency (Regulation (Regulation comply with levels 14(4)(a) and 14(4)(b) and Regulation 16 (Regulation (c)) (d)) (Regulation 14(4)(e)) 14(4)(f)) Financial Officials Accounting Officer 1 1 1 1 Chief Financial Officer 1 1 1 1 Senior Managers 4 4 4 3 Any other financial officials 82 82 47 46 Supply Chain Management Officials Head of Supply Chain Management Units 1 1 1 1 Supply Chain Management Officials 4 4 2 2 Total 93 93 56 54 *This is a statutory report under the National Treasury: Local Government: MFMA Competency Regulations (June 2007) Table 161: Financial Competency Development – Progress Report

156

Skills Development Expenditure Rand Original Budget and Actual Expenditure on skills Employees Management Level Gender development 2016/17 Number Original Actual Budget Female - * * MM and S57 Male 2 * * Legislators, Senior Officials and Female 79 * * Managers Male 97 * * Female 20 * * Professionals Male 16 * * Technicians and Associate Female 4 * * Professionals Male 88 * * Female 34 * * Clerks Male 18 * * Female 1 * * Service and Sales Workers Male 4 * * Plant and machine operators and Female 2 * * assemblers Male 25 * * Female 19 * * Elementary occupations Male 172 * * Female 159 * * Sub-total Male 422 * * Total 581 1,562,500 1,555,442 *Skills development cost is paid out of one vote and cannot be broken up Table 162: Skills Development Expenditure

Council budgeted for an amount of R 1,562,500 and spent R 1,555,442 (99.5%) on the implementation of the approved Workplace Skills Plan (2016/17). Additional amounts detailed below were budgeted and spent on various projects resulting to an overall expenditure amount of R 3,199,508 on all skills development interventions for the financial year 2016/17.

Additional Skills Development Expenditure includes:

Actual Project Budget Expenditure Internal Employee Bursaries R 250,000 R 182,212 External/Mayoral Bursaries R 350,000 R 229,287 Vacation Work R 311,542 R 311,542 Student/Work Integrated Learning R 280,166 R 280,166 Municipal Finance Management Programme / Electrical apprenticeship R 640,859 R 640,859 (LGSETA MANDATORY GRANTS VOTE) Sub-Total R 1,832,567 R 1,644,066 Workplace Skills Plan (2016/17) R 1,562,500 R 1,555,442 Grand Total R 3,395,067 R 3,199,508 Table 163: Additional Skills Development Expenditure

157

Human Capital and Skills Development Policy Objectives taken from IDP Strategic Objective (SO): Institutional Transformation Municipal Key Focus Area (KFA): Human Capital and Skills Development Annual Ref. Name of Key Performance Actual Unit of Measurement Target no. Indicator (KPI) 2016/17 2016/17 (NKPI) The percentage of the Report on the % of the municipality`s budget actually spent municipality`s budget actually TL17 1 Report 1 Report on implementing its workplace skills spent submitted to the Office of plan. the City Manager by 30 June. Table 164: Human Capital and Skills Development Policy Objectives taken from IDP

National Treasury successfully approved Drakenstein Municipality as a Special Merit Case for legislative implementation of Municipal Finance Minimum Competencies. The Municipality has concluded implementing an in-house programme for the target using Stellenbosch School of Public Leadership during 2015/2016. The final target group is currently undergoing MMCL training since June 2017 and will conclude in July 2018.

COMPONENT D: MANAGING THE WORKFORCE EXPENDITURE

INTRODUCTION TO WORKFORCE EXPENDITURE Accountability and transparency are important when managing workforce expenditure. It is important to ensure that the Municipality plans to use their human capital effectively, efficiently and economically. To ensure that the Municipality adheres to legislation, only approved and budgeted posts on the structure are advertised. All positions are advertised on the Municipality’s website and in the local media. This also applies to bursaries. Advertising in other media is based on the target market for the post. This saves on advertising costs and in the electronic age gives easy and quick access to applicants. Drakenstein strives to appoint employees who share the vision of ““A city of excellence”” and who will add value to the organisation. The training and development of internal staff is aimed at ensuring that they are able to perform their duties better.

158

4.6 EMPLOYEE EXPENDITURE Workforce Expenditure Trends R 500,000,000 R 450,000,000 R 400,000,000 R 350,000,000 R 300,000,000 R 250,000,000 Wage Bill R 200,000,000 Wage Bill Wage Bill R 150,000,000 R 100,000,000 R 50,000,000 R 0 2014/15 2015/16 2016/17

Graph 16: Workforce Expenditure Trends

COMMENT ON WORKFORCE EXPENDITURE

Drakenstein’s workforce expenditure of R 458,902,739 accounted for 25.2% of the total operating budget expenditure for the 2016/17 financial year. The workforce expenditure of R 428,697,279 accounted for 25.1% of the total operating budget expenditure for the 2015/16 financial year compared with the workforce expenditure of R 412,476,034 and 25.6% of the 2014/15 financial year. It is clear from the above that the total workforce expenditure as a percentage of the total operating budget has fluctuated over the last three financial years from 25.6% to 25.1% to 25.2%. This % is well within the limits and will steadily rise as post evaluations and benchmarking accelerate the filling of critical vacant positions.

Employees appointed to posts not approved No appointments were made to posts not approved on the structure Table 165: Employees appointed to posts not approved

DISCLOSURES OF FINANCIAL INTERESTS

Disclosures have been made by officials and Councillors concerning their financial interests, as required by Municipal Performance Regulations 805 of 2006 and are set out in Appendix I. No transgressions due to financial interests occurred.

159

Chapter 1: Executive Mayor’s Foreword and Executive Summary

Chapter 2: Governance

Chapter 3: Service Delivery Performance (Performance Report)

Chapter 4: Organisational Development Performance

Chapter 5: Financial Performance

Chapter 6: Auditor-General Audit Findings

Appendices

CHAPTER 5: FINANCIAL PERFORMANCE

 Component A: Statements of Financial Performance  Component B: Spending against Capital Budget  Component C: Cash Flow Management and Investments  Component D: Other Financial matters

160

COMPONENT A: STATEMENTS OF FINANCIAL PERFORMANCE

INTRODUCTION TO FINANCIAL STATEMENTS

The following sections provide an overview of the financial results of the Municipality for the year under review per economic classification compared to the prior year audited results, the Original and Final Adjustments Budget.

Note: Statements of Revenue Collection Performance by vote and by source are included in Appendix J.

Financial Summary R’000 2016/17 % 2015/16 Current Year 2016/17 Variance Description Original Revised Original Revised Actual Actual Budget Budget Budget Budget Financial Performance Property rates 209,584 225,046 225,046 239,118 6.2% 6.2% Service charges 1,172,244 1,416,591 1,416,555 1,436,459 1.4% 1.4% Investment revenue 30,414 15,384 19,400 22,070 43.4% 13.7% Transfers recognised – operational 120,921 182,601 177,382 158,678 -13.1% -10.6% Other own revenue 112,773 114,816 138,735 161,080 40.2% 16.1% Total Revenue (excluding capex grants) 1,645,936 1,945,441 1,977,119 2,017,408 3.2% 2.0% Employee costs 428,697 477,652 459,723 452,967 -5.2% -1.5% Remuneration of Councillors 21,054 23,967 26,785 26,328 9.8% -1.8% Depreciation 172,943 190,506 188,506 176,925 -7.1% -6.1% Finance charges 76,580 89,108 95,728 93,989 5.4% -1.9% Materials and bulk purchases 626,597 629,717 365,717 635,415 0.9% -0.1% Transfers and grants 4,868 736 476 472 -35.9% -0.9% Other expenditure 355,449 636,218 655,903 616,401 -3.2% -6.1% Total expenditure 1,686,188 2,047,906 2,062,841 2,002,501 -2.2% -2.9% Operating Surplus (Deficit) (40,252) (93,465) (85,721) 14,907 115.9% 117.4% Transfers recognised – capital 83,749 57,546 65,479 65,440 13.7% -0.1% Surplus (Deficit) for the year 43,496 (35,919) (20,241) 80,347 323.6% 1,396% Capital expenditure and fund sources Capital expenditure 317,052 592,474 546,072 544,359 -8.2% -0.4% Transfers recognised – capital 73,796 50,552 65,479 65,440 29.4% -0.1% Public contributions and donations 0 0 0 0 0.0% 0.0% Borrowing 226,358 506,921 454,222 435,019 -10.7% -4.2% Internally generated funds 16,898 35,000 26,370 25,900 -26.0% -1.8% Total sources of capital funds 317,052 592,474 546,072 544,359 -8.2% -0.4% Financial position Total current assets 633,368 455,018 652,373 665,381 46.2% 1.9% Total non-current assets 4,686,845 5,252,538 4,944,587 5,045,763 -3.9% 2.0% Total Assets 5,320,213 5,707,952 5,596,960 5,711,144 0.1% 2.0% Total current liabilities 486,631 362,847 562,543 535,675 47.6% -4.8% Total non-current liabilities 1,050,502 1,450,256 1,318,062 1,309,659 -9.7% -0.7%

161

Financial Summary R’000 2016/17 % 2015/16 Current Year 2016/17 Variance Description Original Revised Original Revised Actual Actual Budget Budget Budget Budget Community wealth/ Equity 3,783,080 7,520,662 7,477,567 7,556,479 0.4% 1.0% Total Net Assets and Liabilities 5,320,213 9,333,765 9,358,172 9,401,813 0.7% 0.5% Cash flows Net cash from (used) operating 222,654 241,685 163,919 207,244 -14.3% 26.8% Net cash from (used) investing (324,917) (574,436 (527,698) (535,102) -6.9% 1.4% Net cash from (used) financing 167,442 377,737 294,627 292,433 -22.6% -0.8% Cash/cash equivalents at the year end 65,179 44,986 (69,751) (35,424) -178.7% -50.7% Cash backing / surplus reconciliation Cash and investments available 324,705 168,752 361,536 324,705 92.4% -10.2% Application of cash and investments (259,525) (217,742) (243,429) (243,429) 11.8% 0.0% Balance – surplus (shortfall) 65,179 (48,990) 118,107 81,276 265.9% -31.2% Asset Management Asset register summary (WDV) 4,687,918 5,251,107 4,942,169 5,047,516 -3.9% 2.1% Depreciation and asset impairment 172,923 190,506 190,506 176,975 -7.1% -7.1% Renewal of existing assets 119,807 178,235 181,602 181,089 1.6% -0.3% Repairs and maintenance 174,897 229,221 229,221 218,285 -4.8% -4.8% Table 166: Financial Summary

Financial Performance of Operational Services R’000 2016/17 % 2015/16 Current Year 2016/17 Variance Description Original Revised Original Revised Actual Actual Budget Budget Budget Budget Operating Cost Water 123,780 140,029 136,221 129,489 -7.5% -4.9% Wastewater (Sanitation) 117,455 137,488 142,590 141,129 2.6% -1.0% Electricity 806,416 880,994 880,841 878,280 -0.3% -0.2% Waste Management 124,037 115,593 124,573 112,809 -2.4% -9.4% Component A: Sub-total 1,171,688 1,274,106 1,284,227 1,261,709 -0.9% -1.7% Roads 106,838 126,022 137,669 134,514 6.7% -2.2% Planning 28,084 42,503 40,207 38,226 -10.0% -4.9% Environmental Protection 0 7,532 8,383 7,864 4.4% -6.1% Component B: Sub-total 134,922 176,058 186,260 180,606 2.5% -3.0% Community and Social Services 15,986 34,485 34,277 34,138 -1.0% -0.4% Sports and Recreation 56,037 73,591 75,911 68,707 -6.6% -9.4% Security and Safety 7,546 106,457 114,110 111,078 4.3% -2.6% Housing 109,456 121,964 121,199 113,149 -7.2% -6.6% Health 0 0 0 0 0.0% 0.% Component C: Sub-total 189,025 336,499 345,498 327,073 -2.8% -5.3% Corporate Policy Offices and Other 186,063 261,242 246,854 233,794 -10.5% -5.2% Component D: sub-total 18,063 261,242 246,854 233,794 -10.5% -5.2%

162

Financial Performance of Operational Services R’000 2016/17 % 2015/16 Current Year 2016/17 Variance Description Original Revised Original Revised Actual Actual Budget Budget Budget Budget Total Expenditure 1,513,698 2,047,906 2,062,841 2,003,183, -2.1% -2.8% Table 167: Financial Performance of Operational Services

COMMENT ON FINANCIAL PERFORMANCE

The financial performance of the organisation yielded excellent results. The actual operating revenue yielded a result of 102.0% when compared with the Final Adjustments Budget for 2016/17. The actual operating revenue yielded a result of 97.1% when compared with the Final Adjustments Budget for 2016/17.

The Final Adjustments Budget operating deficit approved was R 85.7 million, and compared with the actual operating surplus of R 14.2 million the actual results realised a positive variance of R 99.9 million. This compared with an actual operating deficit of R 40.2 million in the 2015/16 financial year.

Although moving in the right direction slowly but surely, the results still indicate that not all off- setting depreciation (“paper money”) is fully cash funded.

5.1 GRANTS Grant Performance R’000 2015/16 2016/17 2016/17 Variance Original Revised Description Revised Actual Budget Actual Budget Budget Budget (%) (%) Operating Transfers and Grants National Government: 161,590 149,334 149,334 164,693 10.3% 10.3% Equitable share 96,845 106,240 106,240 106,240 0.0% 0.0% Municipal Infrastructure Grant (MIG) 34,045 33,542 33,542 33,541 0.0% 0.0% Municipal Systems Improvement 929 1,300 1,300 0 -100.0% -100.0% Electrification Grant 13 5,000 5,000 4,684 -6.3% -6.3% Regional Bulk Services Infrastructure Grant (RBIG) 28,646 1,900 1,900 17,871 840.6% 840.6% Expanded Public Works Grant (EPWP) 1,112 1,352 1,352 2,357 74.4% 74.4% Provincial Department: 57,259 82,636 59,299 59,980 -27.4% 1.1% Proclaimed Roads 14,578 18,640 19,903 19,903 6.7% 0.0% Library Personnel 13,382 15,083 15,083 22,606 49.8% 49.8% Housing 28,894 48,800 24,200 16,741 -65.6% -30.8% Community Development Workers 107 113 113 162 43.3% 43.3% Other transfers/grants 298 0 0 568 0.0% 0.0% Total Opex Transfers & Grants 218,849 231,970 208,633 224,673 -3.1% 7.7% Table 168: Grant Performance

163

COMMENT ON OPERATING TRANSFERS AND GRANTS

All grants received that did not form part of the Division of Revenue Act (DORA) allocation as gazetted, were utilised as per conditions set in the service level agreements. All grants utilised were treated in accordance to GRAP 23.

Grants received from sources other than Division of Revenue Act (DORA) 2016/17 Actual Grant Actual Grant Date Grant Details of Donor Municipal 2015/16 2016/17 terminates Contribution Library Personnel 34,046 15,083 0 30/06/2017 Housing 1,776 24,200 0 30/06/2017 Community Development Workers 930 113 0 30/06/2017 Training Grant 4,508 1,582 0 30/06/2017 Proclaimed Roads 39,000 19,903 0 30/06/2017 Waste Water Grant 500 0 30/06/2017 LG Graduate Intern Grant 120 0 30/06/2017 Capacity Building Grant 60 0 30/06/2017 Totals 96,102 61,561 Foreign Governments/Development Aid Agencies None Table 169: Grants received from sources other than Division of Revenue Act (DORA)

COMMENT ON CONDITIONAL GRANTS AND GRANTS RECEIVED FROM OTHER SOURCES

All grants received that did not form part of the DORA allocation as gazetted, were utilised as per conditions set in the service level agreements. All grants utilised were treated in accordance with GRAP 23.

5.2 ASSET MANAGEMENT

INTRODUCTION TO ASSET MANAGEMENT

Asset management at the Municipality is guided by the Asset Management Policy which, although originally focusing largely on the financial management of assets, has been expanded to cover the full scope of asset management.

The Asset Management Policy and related standard operating procedures are aimed at assisting municipal officials in understanding their legal and managerial responsibilities with regard to assets, and to ensure:

 Consistent application of asset management principles;  Application of accrual accounting;  Compliance with the MFMA (including mSCOA and GRAP) and related legislation;  Optimisation of asset usage; and

164

 Effective and efficient safeguarding and control of assets of the Municipality.

The roles of Executive Managers are defined within the asset management policy, placing the responsibility for the control and safeguarding of assets with each user department.

The acquisition and construction of infrastructure assets of the Municipality are planned in terms of priorities as determined in the IDP and by Council, and as per the different Infrastructure Master Plans. Each department needs to budget for the necessary maintenance of assets under their control in order for the assets to achieve their economic life spans.

The Financial Services Department is responsible for maintaining an asset register for all assets capitalised. Information regarding asset register updates in respect of disposals, adjustments, review of useful life, etcetera is based on submissions by user departments in accordance with the procedures in place.

Resultant from the fact that assets are managed by a large number of user departments, the Asset Management Committee was established, and the process of implementation of the Asset Management Policy and Asset Management Strategy is driven through this committee, with reporting to the Strategic Management Team regarding their activities and progress on a quarterly basis.

Regular asset counts for movable assets are conducted in accordance with the prescriptions of the Asset Management Policy. The exceptions from these verification processes are investigated and resolved to ensure a consistently up to date asset register. Management envisages the verification, including condition assessment, of immovable assets to be performed in the upcoming financial periods, depending on the availability of financial and other resources.

A number of matters related to asset management currently impact on the Asset Management Strategy of the Municipality. The following are the most significant issues identified:

 Lack of capacity in sections responsible for management of assets and reporting of information regarding assets (including the Assets and Insurance Management Section): In terms of the organisational structure and the higher demands and standards required regarding asset management, all relevant sections are inadequately staffed. The management of immovable infrastructure assets is particularly challenging in that it necessitates the expertise of engineering staff with some accounting knowledge or background, a skill that is scarce. The Municipality still has to rely, to an extent, on external service providers to update and manage the infrastructure portion of the assets, while currently only three permanent staff members in the Financial Services Department are assigned to maintaining the Asset Register, with a current value exceeding R 5 billion; and

165

 Lack of an appropriate integrated asset management system: Currently asset systems have either not sufficiently been linked to the GIS system, or they do not include photographic imagery, and systems carrying asset data do not integrate automatically. The asset register sub-system on the SOLAR Management Information System is utilised to record and maintain mainly financial, and limited other technical data regarding assets and asset components. Management envisages that an Asset Management System will be implemented to provide more up-to-date spatial data and information on maintenance and renewal requirements, thereby addressing the current limitations. Ideally the system will integrate with the financial system and provide data to also maintain financial information to full adherence with GRAP requirements and the mSCOA. This will however be a costly and time-consuming process due to the many aspects of asset management as well as the requirements of GRAP and the new mSCOA- structure.

Treatment of the largest assets acquired 2016/17 Asset 1 Name Wellington WWTW rehabilitation & Extent Description Upgrading of Wastewater Treatment Works to 16Ml/d Asset type Infrastructure Key staff involved Wastewater Services personnel Staff responsibilities Project management / Asset register compilation 2014/15 2015/16 2016/17 Asset Value R2,334,777 R18,598,284 R86,404,814 External loan / Municipal Infrastructure Grant Capital implications Depreciation and payment of interest on loan used to fund project. Will improve the quality of the effluent to the Berg River and a possibility to re-use this Future purpose of asset effluent as second grade water especially in the drought crisis currently experienced. Entire upgrade of the works to a capacity of 16Ml/d to make provision for new and future Describe key issues developments and improve the effluent quality to the Berg River. Policies in place to Asset Management Policy manage asset Asset 2 Name Upgrade of Bulk Sewer: Southern Paarl Description Sewerage network Asset type Infrastructure Key staff involved Sanitation/sewerage services personnel Staff responsibilities Project Management / Maintenance of Water networks / Asset Register Compilation 2014/15 2015/16 2016/17 Asset Value R27,073,088 R25,625,020 R42,139,995 External loan / Regional Bulk Infrastructure Grant Capital implications Depreciation and payment of interest on loan used to fund project Eliminate possible pollution of the Berg River, make provision for future development. Open Future purpose of asset up large area for housing and business development and therefore job creation. Will alleviate the housing backlog Describe key issues Vandalism of infrastructure a big obstacle Policies in place to Asset Management Policy manage asset

166

Treatment of the largest assets acquired 2016/17 Asset 3 Name Kliprug Substation 132/11kv Description Primary electricity substation Asset type Infrastructure Key staff involved Electro-technical engineering staff Staff responsibilities Project management / Operations & maintenance 2014/2015 2015/2016 2016/2017 Asset Value 0 0 R 41,351,325 Capital implications External loan, Own funding Future purpose of asset Approve availability of bulk electricity supply to the R301 development areas Describe key issues Experience the delay of servitude rights from Eskom Policies in place to Asset Management Policy manage asset Table 170: Treatment of the largest assets acquired 2016/2017

COMMENT ON ASSET MANAGEMENT

The Municipality is focusing its efforts towards more efficient asset management. The Municipality’s vision and intent regarding all aspects of asset management is defined in the Asset Management Policy, which commits the Municipality to providing municipal services for which the Municipality is responsible, according to certain core principles, in a transparent, accountable and sustainable manner, in pursuit of legislative requirements and in support of its strategic objectives.

It is envisaged that the Municipality’s increased effort in focusing on asset management will assist in ensuring that assets are properly maintained and service delivery is enhanced.

The Municipality’s capital projects, as indicated above, were identified through Infrastructure Master Plans and priorities contained in the IDP, and were funded through loans and grants.

The Council only approves projects where the full cost of the project, the future operating costs of the project as well as the effect that the costs associated with the project will have on tax and tariffs were considered by the Council.

Repairs and Maintenance Expenditure 2016/17 R’000 Actual as Actual as Actual as a a % of Original Final a % of Description Actual % of Final PPE Budget Budget Total Budget Carrying Budget Value Repairs and maintenance expenditure 229,221 229,221 218,285 95.2% 12.8% 4.4% Table 171: Repairs and Maintenance Expenditure 2016/17

COMMENT ON REPAIRS AND MAINTENANCE EXPENDITURE

This expenditure reflects actual materials expenditure on budgeted repairs and maintenance items and also includes internal labour, contracted services and vehicle costs. Notable is that

167

95.2% of the operating budgeted expenditure was spent and it also represents 10.8% of total operating actual expenditure. The expenditure also represents 4.3% of the carrying value of property, plant and equipment as reflected in the Statement of Financial Performance.

5.3 FINANCIAL RATIOS BASED ON KEY PERFORMANCE INDICATORS

Liquidity Ratio 1.40

1.30

1.20

1.10

1.00 2014/15 2015/16 2016/17 Liquidity Ratio - Measures the municipality`s ablity to pay its bills and is calculated by dividing the monetary assets by the municipality`s current liabilities. A higher ratio is better.

Graph 17: Liquidity Ratio

Comment on Liquidity Ratio The Liquidity Ratio represents the ability of the Municipality’s current assets to service its current liabilities. This ratio shows a stable trend over the three years under review and the Municipality was still in a liquid position at the end of the 2016/17 financial year with a ratio of 1.24:1. It has to be noted that this is a very tight position which the organisation is striving to improve, but cognisance must be taken that this is reflective of a fast growing Municipality such as Drakenstein that must invest in income generating infrastructure.

Cost Coverage 6 4 2 0 2014/15 2015/16 2016/17

Cost Coverage - It explains how many months expenditure can be covered b ythe cash and other liquid assets available to the Municipality excluding utilisation of grants

Graph 18: Cost Coverage

Comment on Cost Coverage Ratio This ratio represents the number of months’ fixed expenditure that can be covered by the cash and liquid assets available to the Municipality.

168

The cost coverage ratio year on year shows a positive trend from the 2014/15 financial year to the 2015/16 financial year and a slight downward adjustment to the current 3.98 times coverage for the 2016/17 year.

19.0% Outstanding Service Debtors to Revenue 18.0% 17.0% 16.0% 15.0% 14.0% 13.0% 2014/15 2015/16 2016/17 Outstanding service debtors to revenue – Measures how much money is still owed by the community for water, electricity, waste removal and sanitation compared to how much money has been paid for these services. It is calculated by dividing the total outstanding debtors by the total annual revenue. A lower score is better.

Graph 19: Outstanding Service Debtors to Revenue

Comment on Outstanding Service Debtors to Revenue Ratio This ratio measures how much money is owed by debtors when compared to the generated revenue. This is a measure of what the fraction of outstanding debt is from the total generated revenue. This ratio has increased from 2014/15 to the 2016/17 which, although not ideal, is still manageable. The main reason for the increase is an increase of outstanding traffic fines amounting to R32.9 million.

Debt Coverage 8.00 7.80 7.60 7.40 7.20 7.00 2014/15 2015/16 2016/17

Debt Coverage - The number of times debt payments can be accommodated within Operating Revenue (excluding grants). This in turn represents the ease with which debt payments can be accommodated by the Municipality.

Graph 20: Debt Coverage

Comment on Debt Coverage Ratio This ratio shows a slight improvement from the 2015/16 year to just over 7.5 times at the end of the 2016/17 year. The low debt coverage remains a concern for the organisation as the interest and redemption repayable amounts to 13.3% of own operating revenue (grants excluded).

169

Capital Charges to Operating Expenditure 9.5 9 8.5 8 7.5 2014/15 2015/16 2016/17

Capital Charges to Operating Expenditure ratio is calculated by dividing the sum of capital interest and principal by the total operating expenditure.

Graph 21: Capital Charges to Operating Expenditure

Comment on Capital Charges to Operating Expenditure Ratio This ratio indicates the percentage that capital charges make out of the total operating expenditure. This is an indication of how geared the organisation is. The ratio is managed and has remain stable between 8 and 8.2 from 2015/16 and 2016/17.

Creditors System Efficiency 30 28 26 24 22 20 2014/15 2015/16 2016/17

Days Creditors System Efficiency - The proportion of creditors paid within terms (i.e. 30 days). This ratio is calculated by credit purchases divided by outstanding trade creditors times 365 days.

Graph 22: Creditors System Efficiency

Comment on Creditors System Efficiency Ratio The creditors’ payment period has remained stable between 26 days and 28 days from 2014/15 up till the 2016/17 year. The ratio for 2016/17 was 26.1 days. The legislated payment period in terms of Section 65 of the MFMA is 30 days and the organisation is thus operating within the norm and the legislated timeframe when it comes to the payment of creditors.

170

Employee Cost 26.00% 24.00% 22.00% 20.00% 2014/15 2015/16 2016/17

Employee Cost - Measures what portion of the revenue was spent on paying employee costs. It is calculated by dividing the total employee cost by the difference between total revenue and capital revenue.

Graph 23: Employee Cost

Comment on Employee Cost Ratio This ratio represents the percentage employee cost compared to the total operating expenditure of Council. Employee related costs represented 22.6% for the 2016/17 financial year. This ratio is well below the norm of 25% to 40% of the industry.

Repairs and Maintenance 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% 2014/15 2015/16 2016/17

Repairs and Maintenance - This represents the proportion of operating expenditure spent and is calculated by dividing the total repairs and maintenance.

Graph 24: Repairs and Maintenance

Comment on Repairs and Maintenance Ratio The percentage amount of repairs and maintenance shows a slight decrease trend from the 2015/16 year 11.0% to the 10.8% of the 2016/17 year.

171

COMPONENT B: SPENDING AGAINST CAPITAL BUDGET

INTRODUCTION TO SPENDING AGAINST CAPITAL BUDGET

Capital expenditure relates mainly to construction projects of which the value will last over many years. Capital expenditure is funded from grants, borrowings and operating expenditures and surpluses. Component B provides an overview of the sources of asset finance and the utilisation of assets as planned.

The major infrastructure projects funded from the Capital Budget were the rehabilitation and extension of Wellington Wastewater Treatment Works; the upgrade of the bulk sewer in Southern Paarl; the construction of the Kliprug 132/11kV electricity sub-station; the 8 ML Courtrai Reservoir; and, the rehabilitation and upgrading of the Saron Waste Water Treatment Works.

Refer to Appendix L (I) (relating to the capital expenditure - new assets programme) also Appendix l (II) relating to Capital Expenditure– Upgrade/Renewal Programme, M (relating to the Capital Programme by Project 2015/2016, and N (relating to the Capital programme by Project by Ward) for a further analysis of capital expenditure.

5.4 CAPITAL EXPENDITURE

Capital Expenditure 2016/17 600,000,000

590,000,000 592,474,442 580,000,000

570,000,000 Original Budget 560,000,000 Final Budget

550,000,000 Actual Expenditure

540,000,000 546,072,195 544,358,708 530,000,000

520,000,000 Graph 25: Capital Expenditure

172

SOURCES OF FINANCE

Capital Expenditure – Funding Sources 2016/17 R’000 2015/16 2016/17 Details Original Revised Actual to Actual to Actual Budget Budget Actual OB % RB % (OB) (RB) Variance Variance Source of finance External loans 226,358 506,921 454,222 453,019 -10.6% -0.3% Public contributions and donations 0 0 0 0 0.0% 0.0% Grants and subsidies 73,797 50,552 65,479 65,440 29.5% -0.0% Other 16,898 35,000 26,370 25,900 -24.6% -1.7% Total 317,052 592,474 546,072 544,359 -7.8% -0.3% Percentage of finance External loans 71% 86% 83% 83% -2.7% 0.0% Public contributions and donations 0% 0% 0% 0% 0.0% 0.0% Grants and subsidies 23% 9% 12% 12% 33.3% 0.0% Other 5% 6% 5% 5% -16.6% 0.0% Capital expenditure Water and sanitation 153,632 308,155 315,671 315,616 2.4% -0.2% Electricity 33,969 149,616 90,317 89,870 -39.9% -0.4% Housing 3,085 1,600 1,952 1,952 22.0% 0.0% Roads and stormwater 60,868 65,327 67,924 67,895 3.9% -0.0% Other 65,498 67,775 70,206 69,024 3.5% -1.6% Total 317,052 592,474 546,072 544,359 -8.1% -0.3% Percentage of expenditure Water and sanitation 48.4% 52.0% 57.8% 57.9% 11.1% 0.3% Electricity 10.7% 25.2% 16.5% 16.5% -34.5% -0.1% Housing 0.9% 0.2% 0.3% 0.3% 32.4% 0.3% Roads and stormwater 19.2% 11.0% 12.4% 12.4% 12.8% 0.2% Other 20.6% 11.4% 12.8% 12.8% 12.3% -1.3% Table 172: Capital Expenditure – Funding Sources – 2016/17

COMMENT ON SOURCES OF FUNDING Overall, 99.69% of the Final Capital Adjustments Budget was spent during the 2016/17 financial year. The Municipality is working on streamlining in-house processes to ensure that it reaches as close to 100% spending as possible.

173

5.6 CAPITAL SPENDING ON FIVE LARGEST PROJECTS Capital Expenditure of five largest projects Rand

Budgeted and Actual Expenditure % Variances Name of project Original Revised Original Revised Actual Budget Budget % Budget Budget Expenditure % Variance Variance Wellington WWTW: 108,248,267 86,404,815 86,404,814 -20.1% 0.0% Rehabilitation & Extent Upgrade Bulk Sewer : Southern Paarl 33,057,979 42,139,995 42,139,995 27.4% 0.0%

Kliprug Substation 132/11kV 46,182,615 41,351,326 41,351,325 -10.4% 0.0%

8 ML Courtrai Reservoir 20,000,000 34,915,895 34,915,895 74.5% 0.0% Saron WWTW: 17,899,333 28,408,641 28,408,640 58.7% 0.0% Rehabilitation and upgrading Totals 225,388,194 233,220,672 233,220,669 3.5% 0.0%

Projects with the highest capital expenditure in 2016/17

Name of Project A Wellington WWTW: Rehabilitation & Extension Eliminate possible pollution of the Berg River, make provision for future Objective of project development.

Delays 3 Weeks delay due to industrial strike.

Future challenges Vandalism of infrastructure a big obstacle. The WWTW will service approximately 120,000 citizens Anticipated citizen benefits (25,000 households)

Name of Project B Upgrade Bulk Sewer : Southern Paarl To create capacity in the sewer network to accommodate further Objective of project development.

Delays 1 Week delay due to industrial strike. Future challenges Vandalism of infrastructure a big obstacle.

Anticipated citizen benefits Good quality treated waste water flowing into river.

Name of Project C Kliprug Substation 132/11kV

Objective of project Increased electrical capacity to Val De Vie and R 301 development area.

Delays Awaiting transformer delivery from overseas To maximise available loading and capacity to improve load factors to Future challenges reduce operational costs.

Anticipated citizen benefits Improved, quality and reliable electricity supplies.

Name of Project D 8 ML Courtrai Reservoir

Objective of project Province and store bulk water for domestic and industrial use.

Delays None Second reservoir 8 Ml still to be constructed in supply bulk water Future challenges pipeline towards Simondium.

174

Capital Expenditure of five largest projects Rand

Budgeted and Actual Expenditure % Variances Name of project Original Revised Original Revised Actual Budget Budget % Budget Budget Expenditure % Variance Variance

Anticipated citizen benefits Will service approximately 120,000 citizens (25,000 households).

Name of Project E Saron WWTW: Rehabilitation and upgrading

Objective of project To ensure that high quality treated waste water flows into the river.

Delays Industrial strike for a period of 1 week.

Future challenges Awaiting Eskom bulk supply, continuous liaison with Eskom. Stimulate growth, good effluent quality resulting in environmental Anticipated citizen benefits improvement. Table 173: Capital Expenditure of five largest projects

COMMENT ON CAPITAL PROJECTS The five biggest capital projects’ actual expenditure amounted R 233.2 million compared with the approved final adjustments budget amount of R 233.2 million. There was no variance to speak off. Compared with the original approved budget of R 225.3 million the five projects realised an “over-expenditure” of R 7.9 million or a 3.5% variance. However, no unauthorised expenditure was involved due to the revised budget and virements approved during the financial year.

5.7 BASIC SERVICE AND INFRASTRUCTURE BACKLOGS – OVERVIEW

INTRODUCTION TO BASIC SERVICE AND INFRASTRUCTURE BACKLOGS

Infrastructure Services represents the core of service delivery to the community.

The bulk infrastructure service networks, when it reaches the end of its life, must be replaced, rehabilitated and maintained within acceptable norms and standards to ensure the reliable provision of services. The total replacement cost of the existing infrastructure services is estimated at R 6.9 billion. It has been found that a large percentage of assets has reached the end of their economic useful life. The Municipality does not generate sufficient funds to maintain and replace these assets.

However, a risk assessment study was undertaken to determine the most important assets that should be replaced and maintained to ensure service delivery.

The provision of basic services to the informal areas is a moving target due to the migration of informal inhabitants into the areas. Services in terms of minimum standards are provided but need to be extended on an annual basis, which places a burden on the Capital Budget. The

175

total number of household increase is greater than the number of houses that the Municipality build, which places an enormous burden on its resources.

Service Backlogs as at 30 June 2017 Households (HHs) *Service level above minimum **Service level below minimum standard standard No. of HHs % HHs No. of HHs % HHs Water 68,096 99.6% 297 0.4% Sanitation 67,210 98.3% 1,183 1.7% Electricity ***50,258 70.8% ***20,684 96.5% Waste Management 68,393 100.0% 0 0.0% Housing * * * * % HHs are the service above / below minimum standard as a proportion of total HHs. “Housing” refers to *formal and **informal settlements. Table 174: Service Backlogs as at 30 June 2016 *Note: Housing backlogs addressed in Table 2. The required information cannot be provided in terms of households. **Note: No backlog on providing minimum services to formal households. Only some informal settlements are below the minimum service level. ***Note: Figures include Eskom areas but exclude Stellenbosch areas of Pniel and Hollandse Molen.

Municipal Infrastructure Grant (MIG) * Expenditure 2016/17 on Service Backlogs R’000 Variance Adjustments Adjustments Details Budget Budget Actual Budget Budget Infrastructure – Road transport 0 0 0 0.0% 0.0% Roads, pavements and bridges 0 0 0 0.0% 0.0% Stormwater 0 0 0 0.0% 0.0% Infrastructure – Electricity 777,884 0 0 -100.0% 0.0% Generation 0 0 0 0.0% 0.0% Transmission and Reticulation 0 0 0 0.0% 0.0% Street lighting 777,884 0 0 -100.0% 0.0% Infrastructure – Water 10,351,333 10,351,333 10,351,333 0.0% 0.0% Dams and reservoirs 10,351,333 10,351,333 10,351,333 0.0% 0.0% Water purification 0 0 0 0.0% 0.0% Reticulation 0 0 0 0.0% 0.0% Infrastructure – Sanitation 10,726,905 13,749,204 13,749,204 28.17% 0.0% Reticulation 0 0 0 0.0% 0.0% Sewerage purification 10,726,905 13,749,204 13,749,204 28.17% 0.0% Infrastructure – Other 0 0 0 0.0% 0.0% Waste Management 0 0 0 0.0% 0.0% Transportation 0 0 0 0.0% 0.0% Gas 0 0 0 0.0% 0.0% Other 2,840,375 9,441,463 9,441,462 232.40% 0.0% PMU 1,495,918 1,495,918 1,495,918 0.0% 0.0% Sport 1,344,457 7,945,545 7,945,544 490.9% 0.0% Vat Claimed 4,119 4,119 4,119 100% 100% VAT on capex claimed 4,119 4,119 4,119 100% 100% Total 24,696,497 33,542,000 33,541,999 35.82% 0.0% Table 175: MIG Expenditure 2016/17 on Service Backlogs

176

COMMENT ON BACKLOGS

The MIG allocation for 2016/17 was R 33,542,000 (VAT included) and the 100% expenditure thereof resulted in additional service delivery. The main beneficiaries are the poorer communities as they are given better infrastructure which assists in improving their standard of living.

Most of 2016/17 MIG funds were spent on multi-year projects and are still on-going. The following projects resulted in additional service delivery:

 Upgrading of Hermon Sports Ground – 1,830 households benefitted; and  Boy Louw Sports Grounds: Upgrade Ablution Facilities – 59,774 households benefitted.

The following projects are on-going and will further reduce backlogs once completed:

 Strawberry King to Wellington: New Water Pipeline;  Wellington: Upgrade of Wastewater Treatment Works;  Welvanpas Water Treatment Works and 5 Mℓ Reservoir;  Newton Water Pump station; and  Mbekweni: Upgrading Sports Fields.

COMPONENT C: CASH FLOW MANAGEMENT AND INVESTMENTS

INTRODUCTION TO CASH FLOW MANAGEMENT AND INVESTMENTS

Cash flow is of vital importance to the health of a municipality. The Local Government: Municipal Finance Management Act, 2003 (Act 56 of 2003) requires that a municipality must establish an appropriate and effective cash management and investment policy. Under this policy framework, the municipality must:

 Conduct its cash management and investments; and  Invest surplus cash that is not immediately required for expenditure purposes. This surplus could include income from rates and services, rents, fines, grants, subsidies, levies and interest earned on investments.

Investments are placed with top creditworthy institutions as rated by nationally recognised credit rating agencies.

The department reports regularly to the Executive Mayor, the Finance Portfolio Committee, the Auditor-General, the National Treasury and Provincial Treasury in order to assess the performance of the investment portfolio and to ensure that the investments comply with policy objectives, guidelines, applicable laws and regulations.

177

5.8 CASH FLOW Cash Flow Outcomes 2015/16 Current Year 2016/17 Description Audited Original Adjustments Outcome Budget Budget Actual Cash Flow from operating activities Receipts 1,697,162 1,915,230 1,888,351 1,738,320 Ratepayers and other 1,461,511 1,648,004 1,639,902 1,475,720 Government – Operating 12,488 182,601 158,561 225,883 Government – Capital 83,749 57,546 58,809 0 Interest 30,399 27,063 31,063 36,702 Dividends 15 15 15 15 Payments (1,474,503) (1,673,545) (1,725,031) (1,531,076) Suppliers and employees (1,397,923) (1,583,700) (1,623,147) (1,437,086 Finance charges (76,580) (89,109) (95,729) (93,990) Transfers and Grants 0 (736) (6,155) 0 Net cash from (used) operating activities 222,659 241,685 163,319 207,244 Cash flow from investing activities Receipts 8,120 264 264 894 Proceeds on disposal of PPE 3,936 250 250 0 Decrease (Increase) in non-current debtors 522 0 0 0 Decrease (Increase) other non-current receivables 0 14 14 637 Decrease (Increase) in non-current investments 0 0 0 257 Payments (329,381) (547,700) (527,962) (535,102) Capital assets (329,381) (547,700) (527,962) (535,102) Net cash from (used) investing activities (324,923) (547,436) (527,698) (535,102) Cash flow from financing activities Receipts 297,313 509,841 426,732 421,078 Short-term loans 0 0 0 927 Borrowing long term/refinancing 294,532 506,922 423,812 416,296 Increase (Decrease) in consumer deposits 5,844 2,919 2,919 3,855 Payments (132,933) (132,104) (132,104) (132,104) Repayment of borrowing (132,933) (132,104) (132,104) (132,104) Net cash from (used) financing activities 167,443 377,737 294,627 292,433 Net increase/(Decrease) in cash held 65,179 44,986 (69,751) (35,425) Cash/cash equivalents at the beginning of the year 259,526 140,989 361,536 324,705 Cash/cash equivalents at the end of the year 324,705 185,975 291,785 289,281 Net increase/(Decrease) in cash held 65,179 44,986 (69,751) (35,424) Table 176: Cash Flow Outcomes

178

COMMENT ON CASH FLOW OUTCOMES Cash received from debtors has increased from the previous year, indicating an effective implementation of the Debtors’ Policy. The cash available has decreased due to the investment of roll-over funds of the previous year in property, plant and equipment.

5.9 BORROWING AND INVESTMENTS

INTRODUCTION TO BORROWING AND INVESTMENTS The application of the Municipality’s Investment Policy aims to gain the optimal return on investments, without incurring undue risks, during those periods when cash revenue is not needed for capital or operational purposes, whereas the Borrowing Policy aims to gain the lowest interest rate on external borrowings.

Actual Borrowings as at 30 June 2017 R’000 Annuity Loans 2014/15 2015/16 2016/17 Opening balance of annuity loans 595,519 741,239 902,837 Taken up during the year 205,000 294,530 421,939 Less: Redeemed during the year (59,279) (132,932) (134,288) Closing Balance of Annuity Loans 741,239 902,837 1,190,488 Table 177: Actual Borrowings

Municipal Investments R’000 2014/15 2015/16 2016/17 Instrument Actual Actual Actual Listed Corporate Bonds 142 393 132 Deposits – Bank 225,836 319,391 276,778 Guaranteed Endowment Policies (sinking) - - - Municipal Bonds - - - Other - - - Total Municipal Investments 225,978 319,784 276,910 Table 178: Municipal Investments

179

Actual Borrowings R'000 1,300,000 1,200,000 1,100,000 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 2014/15 2015/16 2016/17

Graph 26: Actual Borrowings

COMMENT ON BORROWING AND INVESTMENTS

Investments have decreased since the previous financial year, whereas borrowings have increased due to the increased investment in infrastructure. The Municipality is nearing its point of gearing saturation and will thus have to seek other sources of finance in future, such as government grants, or will need to revise its investment in infrastructure going forward. Fortunately current investment in revenue generating bulk infrastructure will unlock and attract the expected growth in housing and other developments in Drakenstein over the next ten to fifteen years. The gearing ratio is projected to come down to about 40% in ten years from now.

5.10 PUBLIC-PRIVATE PARTNERSHIPS

PUBLIC-PRIVATE PARTNERSHIPS Drakenstein Municipality has commenced with the establishment of a public-private partnership. The Waste to Energy Project is in the process of being externally assessed and it will all depend on the Final Environmental Impact Report to be approved by the National Department of Environmental Affairs.

180

COMPONENT D: OTHER FINANCIAL MATTERS

5.11 SUPPLY CHAIN MANAGEMENT

SUPPLY CHAIN MANAGEMENT

The SCM Policy was reviewed during the 2016/17 financial year. Certain amendments to the SCM Policy were tabled before Council in order to improve operational efficiency. The Municipality has to forward the current SCM Policy to the Western Cape Provincial Treasury on an annual

basis for scrutiny and compliance verifications against the SCM Policy model that was issued by National Treasury. The purpose of this exercise is to determine whether the Municipal SCM Policy deviates from the stipulations of the SCM Regulations. Drakenstein Municipality’s SCM Policy complies with the regulatory framework.

A committee system for competitive bids is functional, with stated and assigned delegations issued and signed by the respective members serving on the respective committees. No Councillor is a member of or acts as an observer at any bid committee evaluating or approving tenders, quotations, contracts or other bids. The SCM Manager and the Senior Accountant: Compliance, Risk, Performance and Reporting have obtained the prescribed competency levels. Three other senior supply chain management officials are in the process of obtaining the required

accreditation.

5.12 GRAP COMPLIANCE The Municipality has fully implemented the Standards of GRAP (Generally Recognised Accounting Practice) in accordance with the MFMA and Directive 5 issued by the Accounting Standards Board (ASB) and did not deviate from any standard.

Reference Topic GRAP Framework for the preparation and presentation of financial statements GRAPFramework 1 Presentation of Financial Statements GRAP 2 Cash Flow Statements GRAP 3 Accounting Policies, Changes in Accounting Estimates and Errors GRAP 4 The Effects of Changes in Foreign Exchange Rates GRAP 5 Borrowing Costs GRAP 6 Consolidated and Separate Financial Statements GRAP 7 Investment in Associates GRAP 8 Investment in Joint Ventures GRAP 9 Revenue from Exchange Transactions GRAP 10 Financial Reporting in Hyperinflationary Economics GRAP 11 Construction Contracts GRAP 12 Inventories GRAP 13 Leases GRAP 14 Events After the Reporting Date GRAP 16 Investment Property

181

Reference Topic GRAP 17 Property, Plant and Equipment GRAP 19 Provisions, Contingent Liabilities and Contingent Assets GRAP 21 Impairment of Non-cash-generating Assets GRAP 23 Revenue from Non-exchange Transactions GRAP 24 Presentation of Budget Information in Financial Statements GRAP 25 Employee Benefits – issued December 2009 GRAP 26 Impairment of Cash-generating Assets GRAP 27 Agriculture GRAP 31 Intangible Assets GRAP 100 Discontinued Operations GRAP 103 Heritage Assets GRAP 104 Financial Instruments GRAP 105 Transfers of Functions Between Entities Under Common Control GRAP 106 Transfers of Functions Between Entities Not Under Common Control GRAP 107 Mergers IFRS 4 Insurance contracts IFRS 6 Exploration for and evaluation of mineral resources IAS 12 Income taxes IGRAP 1 Applying the probable test on initial recognition of revenue IGRAP 2 Changes in Existing Decommissioning, Restoration and Similar Liabilities IGRAP 3 Determining whether an Arrangement Contains a lease IGRAP 4 Rights to Interest Arising from Decommissioning, Restoration and Environmental IGRAP 5 ApplyingRehabilitation the Restatement Funds Approach under the Standard of GRAP on Financial Reporting IGRAP 6 Loyaltyin Hyperinflationary Programmes Economies IGRAP 7 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their IGRAP 8 AgreementsInteraction for the construction of Assets from Exchange Transactions IGRAP 9 Distributions of Non-cash Assets to Owners IGRAP 10 Assets Received from Customers IGRAP 11 Consolidations – Special Purpose Entities IGRAP 12 Jointly Controlled Entities – Non-monetary Contributions by Ventures IGRAP 13 Operating Leases – Incentives IGRAP 14 Evaluating the Substance of Transactions Involving the Legal Form of a Lease IGRAP 15 Revenue – Barter Transactions Involving Advertising Services IGRAP 16 Intangible Assets – Website Costs IFRIC 12 Service concession arrangements IFRIC 21 Levies SIC 25 Income taxes – Changes in the status of an enterprise or its shareholders SIC 29 Disclosure service concession Directive 1 Repeal of existing transitional provisions in, and consequential amendments to, Directive 3 Transitionalstandards of provisions GRAP for high capacity municipalities Directive 5 Determine the GRAP reporting framework Directive 7 The Application of Deemed Cost Directive 11 Changes in the Measurement Bases Following the Initial Adoption of the ASB Guide 1 Guideline on accounting for public private partnerships Standards of GRAP Table 179: GRAP Compliance List

182

The adoption of the standards and interpretation above did not have a significant impact on the financial position, financial performance or cash flows of the Municipality.

183

Chapter 1: Executive Mayor’s Foreword and Executive Summary

Chapter 2: Governance

Chapter 3: Service Delivery Performance (Performance Report)

Chapter 4: Organisational Development Performance

Chapter 5: Financial Performance

Chapter 6: Auditor-General Audit Findings

Appendices

CHAPTER 6: AUDITOR-GENERAL AUDIT FINDINGS  Component A: Auditor-General opinion of Financial Statements 2015/16  Component B: Auditor-General opinion of Financial Statements 2016/17

184

The Annual Financial Statements as set out in Volume I and the Annual Performance Report as set out in Volume V was submitted to the Auditor-General on 31 August 2017. The Auditor- General performed their audit during the months of July to November 2017 and submitted their Auditor-General’s Report (attached hereto as Volume II) as required by Section 126(3) of the Local Government: Municipal Finance Management Act, 2003 (Act 56 of 2003) (MFMA) to the Municipality on 30 November 2017. COMPONENT A: AUDITOR-GENERAL OPINION OF FINANCIAL STATEMENTS 2015/16

Auditor-General Report on Financial Performance 2015/16 Audit Report Status Unqualified Audit Opinion Non-compliance issues Remedial action taken None Not applicable Table 180: Auditor-General Report on Financial Performance 2015/16

Auditor-General Report on Service Delivery 2015/16 Status of Audit Report Clean Audit Opinion Non-compliance issues Remedial action taken None Not applicable Table 181: Auditor-General Report on Service Delivery 2015/16

COMPONENT B: AUDITOR-GENERAL OPINION 2016/17

6.1 AUDITOR-GENERAL REPORT 2016/17 Auditor-General Report on Financial Performance 2016/17 Status of Audit Report Unqualified Audit Opinion Non-compliance issues Remedial action taken None Not applicable Table 182: Auditor-General Report on Financial Performance 2016/17

Auditor-General Report on Service Delivery 2016/17 Status of Audit Report Clean Audit Opinion Non-compliance issues Remedial action taken None Not applicable Table 183: Auditor-General Report on Service Delivery 2016/17

AUDITOR-GENERAL REPORT ON THE FINANCIAL STATEMENTS 2016/17

The Auditor-General’s Report in paragraph 2 of the report attached hereto as Volume II gave Drakenstein Municipality an unqualified audit opinion with no other matters and we quote:

“In my opinion, the financial statements present fairly, in all material respects, the financial position of the Drakenstein Municipality as at 30 June 2017, and its financial performance and cash flows for the year then ended in accordance with the South African Standards of

185

Generally Recognised Accounting Practice (SA Standards of GRAP) and the requirements of the Municipal finance Management Act of South Africa, 2003 (Act No. 56 of 2003) (MFMA) and the Division of Revenue Act of South Africa, 2016 (Act No. 3 of 2016) (DoRA).”

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

Predetermined objectives The Auditor-General’s Report in paragraph 21 of the report attached hereto as Volume II gave Drakenstein Municipality an unqualified audit opinion with no other matters and we quote:

“I did not raise any material findings on the usefulness and reliability of the reported performance information for the following key performance areas:

• Key performance area 2: physical infrastructure and energy efficiency; and • Key performance area 3: services and customer care.”

Compliance with legislation The Auditor-General’s Report in paragraph 25 of the report attached hereto as Volume II gave Drakenstein Municipality an unqualified audit opinion with no other matters and we quote:

“I did not raise any material findings on compliance with the specific matters in key legislation as set out in the general notice issued in terms of the PAA.”

Internal control The Auditor-General’s Report in paragraph 31 of the report attached hereto as Volume II gave Drakenstein Municipality a clean bill of health and we quote:

“I considered internal control relevant to my audit of the financial statements, reported performance information and compliance with applicable legislation: however, my objective was not to express any form of assurance thereon. I did not identify any significant deficiencies in internal control.”

COMMENTS ON AUDITOR-GENERAL’S OPINION 2016/17

Drakenstein Municipality received an unqualified opinion with no other matters on the Annual Financial Statements and performance information for the 2016/17 financial year. It is clear in the opinion of the Auditor-General that Drakenstein Municipality’s financial position and service delivery performance are sound and that sound leadership, financial management and internal control practices are in place.

Management submits monthly Section 71 of the MFMA reports in the required format to National Treasury and the Western Cape Provincial Treasury and the same information in a layman’s report to the Executive Mayor and Council.

186

Chapter 1: Executive Mayor’s Foreword and Executive Summary

Chapter 2: Governance

Chapter 3: Service Delivery Performance (Performance Report)

Chapter 4: Organisational Development Performance

Chapter 5: Financial Performance

Chapter 6: Auditor-General Audit Findings

Appendices

187

APPENDICES APPENDIX A: COUNCILLORS, COMMITTEE ALLOCATION AND COUNCIL ATTENDANCE

Councillors, committees allocated and Council attendance Percentage Percentage *Ward and Council apologies Full- Part- Council members Committees allocated /or party Meetings for non- time time represented attended attendance % % Abrahams, Alvina Wilhelmina √ Community Services Proportional 94 0 Adriaanse, Miriam Maria Corporate Services Ward 24 100 0 Afrika, Amelda Felicity √ Community Services Proportional 94 50 Anderson, Joan Felicity √ Corporate Services Ward 26 94 100 Andreas, Margaretha Aletta √ Local Labour Forum Proportional 100 0 Arnolds, Ruth Belldine √ Infrastructure Services Ward 7 89 100 Bekeer, Abraham √ Corporate Services Proportional 89 100 Bester, Theunis Gerhardus √ Infrastructure Services Ward 19 100 0 Blanckenberg, Derrick Solomon √ Infrastructure Services Ward 16 67 80 Booysen, Vanessa Charmaine √ Infrastructure Services Ward 27 94 100 Buckle, Albertus Marthinus Loubser √ MPAC Ward 18 89 100 Combrink, Gert Cornelius √ Financial Services Proportional 100 0 Cupido, Felix Patric √ Planning & Econ. Dev. Ward 22 100 0 Cupido Patricia Beverly Ann √ Infrastructure Services Ward 20 94 100 Financial Services / De Goede, Hendrik Ruben √ Local Labour Forum Proportional 100 0 De Wet, Jo-Ann √ MPAC Ward 14 94 100 Duba, B √ Corporate Services Proportional 83 34 Ford, Geoffrey Harry √ Community Services Ward 31 94 100 George, Nonkumbulo Nancy √ MPAC Proportional 88 100 Gouws, Eva √ Community Services Ward 21 100 0 Jacobs, Frances √ Community Services Ward 23 94 100 Appeal Committee / Jonas, Sweetness Xoliswa √ Corporate Services Proportional 82 67 Kearns, Christephine √ Financial Services Ward 10 94 100 Klaas, Moses Thembile √ Financial Services Proportional 76 75 Appeal Committee / Koegelenberg, Renier Adriaan √ Local Labour Forum Proportional 94 100 Kotze, Hendrik Jacobus √ Infrastructure Services Ward 2 94 100 Kroutz, Calvin √ Community Services Ward 1 100 0 Landu, Linda √ Appeal Committee Proportional 82 100 Le Hoe, Marthinus Jacobus √ Community Services Proportional 94 100 Le Roux, Jacobus Francois √ Infrastructure Services Proportional 94 100 Lugqola, Anathi √ Corporate Services Proportional 100 0 Mangena, Tembekile Christopher √ Community Services Ward 9 89 100 Masoka, Zolani Livingstone √ Community Services Proportional 94 100 Matthee, Hendrik Johannes Nicolaas √ Financial Services Ward 17 89 100 Matthee, Joseph √ MPAC Proportional 100 0 Mbenene, Ndilleka Primrose √ Community Services Proportional 88 100 Planning & Economic Mdunusie, Minah Nontombi √ Development Proportional 100 0 Planning & Economic Meyer, Willem Pieter Daniel √ Development Proportional 100 0 Planning & Economic Miller, Johan √ Development Ward 4 100 0 Mkabile, Nkomfa Deon √ Financial Services Proportional 82 67

188

Councillors, committees allocated and Council attendance Percentage Percentage *Ward and Council apologies Full- Part- Council members Committees allocated /or party Meetings for non- time time represented attended attendance % % Mpulanyana, Thuso Reginald √ Infrastructure Services Proportional 100 0 Corporate Services / Mokoena, Liphaphathi Patricia √ Local Labour Forum Proportional 100 0 Niehaus, Lodewyk Wilfred √ Ward 15 100 0 Nobula, Mncedisi Daniel √ Infrastructure Services Ward 12 88 0 Nqoro / Nomana, Tryfhina Zukiswa √ Ward 6 94 0 Nzele, Lawrence Vuyani √ Corporate Services Ward 32 100 0 Philander, Wendy Felecia √ Financial Services Proportional 94 100 Poole, Conrad James √ Proportional 100 0 Rens, Samuel Colin √ Appeal Committee Proportional 83 34 Richards, Abdul Moutie √ MPAC Proportional 100 0 Planning & Economic Ross, Soudah √ Development Ward 13 89 100 Sambokwe, Ludia Sindiswa √ MPAC Proportional 88 50 Sauerman, Nicolaas Daniël √ Corporate Services Proportional 88 100 Planning & Economic September, Sharon Elizabeth √ Development Ward 33 100 0 Smit, Johannes √ Corporate Services Ward 30 94 100 Smit, Wilhelmina Elizabeth √ MPAC Ward 3 94 100 Smuts, Rean √ Community Services Proportional 94 100 Planning & Economic Solomons, Elizabeth Aletta √ Development Proportional 100 0 Stowman, Aidan Charles √ Appeal Committee Ward 11 100 0 Van Niekerk, Laurichia Tylia √ Community Services Ward 25 94 100 Van Nieuwenhuyzen, Reinhardt Heinrich √ Appeal Committee Ward 28 100 0 Van Santen, Aletta Johanna √ MPAC Proportional 100 0 Planning & Economic Vika, Mandisa √ Development Proportional 100 0 Willemse, Lorraine √ Community Services Ward 29 100 0 Planning & Economic Zikhali, Nomonde √ Development Ward 8 100 0 Councillors, committees allocated and Council attendance (prior to the local government elections and not included in the list above) Percentage Percentage *Ward and Council apologies Full- Part- Council members Committees allocated /or party Meetings for non- time time represented attended attendance % % Adams, Noël David √ Community Services Proportional 100 0 Allom, Amina √ Infrastructure Services Ward 25 100 0 Apollis, Cupido Jacobus Johannes √ Corporate Services Proportional 0 0 Bolani, Luvuyo Espin √ Infrastructure Services Proportional 100 0 Cekiso, ZK √ Proportional 100 Chabaan, B √ Proportional 0 100 Appeal Committee / Planning & Economic Daries, Lutisia Nancy √ Development Ward 22 100 0 Davids, Claire Olivia √ Infrastructure Services Proportional 100 0 Du Toit, Lourens Matthys √ Community Services Ward 17 100 0 Kika-Dyson, Spasie Planning & Economic Nontuthuzelo √ Development Proportional 0 0

189

190

APPENDIX B: COMMITTEES AND COMMITTEE PURPOSES

Committees (other than Mayoral/Executive Committee) and purposes of Committees Municipal Committees Purpose of committee Municipal Public Accounts To perform an oversight function on behalf of Council over the executive Committee functionaries of the Council. To deal with appeals in terms of Section 62 of the Local Government: Appeals Committee Municipal Systems Act, 2000 (Act 32 of 2000). In terms of Section 166(2) of the MFMA, an audit committee must advise the municipal council, the political office bearers, the accounting officer and the management staff of the municipality, on matters relating to:- Audit Committee  Internal financial control;  Risk management;  Performance management; and  Effective governance. To assist the Accounting Officer by reviewing the effectiveness of the Fraud- and Risk Management municipality’s fraud- and risk management systems, practices and Committee procedures and providing recommendations for improvement. To assist Council in ensuring that the budget reflects the strategic outcomes Budget Steering Committee embodied in the IDP and related strategic policies.  To serve as administrative tribunal to conduct hearings of Councillors charged for contravention of the Code of Conduct for Councillors and to make recommendations to Council regarding proposed sanctions; Special Committee and  To consider any other matter of a disciplinary nature relating to Councillors and make a recommendation to Council. Table 185: Committees (other than Mayoral Committee) and purposes of committees

191

APPENDIX C: SECOND- AND THIRD-TIER ADMINISTRATION STRUCTURE

Second- and Third-tier Structure Department Executive Manager/Manager Civil Engineering Services Executive Manager: Mr D Hattingh Civil Engineering Services Senior Engineer Roads, Stormwater and Traffic: Mr CM Lotz Civil Engineering Services Senior Engineer: Civil Engineering Services: W Pretorius Civil Engineering Services Senior Engineer Mr AA Kowalewski Civil Engineering Services Senior Engineer Wastewater Services: Mr RM Brown Technical Support & Project Management Senior Manager Support Services: J Knaggs Technical Support & Project Management Manager Fleet Management: Mr FW Nieuwoudt Technical Support & Project Management Manager Project Management Unit: P Pansegrouw Technical Support & Project Management Manager Building Maintenance: Mr K Wyngaard Planning Services Deputy Executive Manager: Planning: Mr D Delaney Planning: Land Use Planning Manager Land Use Planning: Mr HG Strijdom Planning: Land Survey and Valuation Manager Land Survey and Valuation: Vacant Planning: Building Control Manager Building Control: Vacant Planning: Spatial Planning Manager Spatial Planning: Ms A Shortles Planning: Economic Development Manager Local Economic Development: Ms C Phillips Internal Audit Manager Internal Audit: Mr TC Traut Internal Audit Manager Performance Audit: Ms N Mketsu Income Division Manager Income: Mr AC Abrahams Financial Reporting Manager Financial Reporting: Mr A Viola Revenue and Expenditure Senior Manager Revenue and Expenditure: Ms NG Keketsi Financial Statements and Reporting Senior Manager Financial Management Support: Ms C Lategan Budget Office Manager Budget: Ms KS Fredericks Assets and Insurance Manager Assets and Insurance: Ms L Theron Supply Chain Management Unit Manager Supply Chain Management: Mr H Vergotine Housing: Rural Development Manager Rural Development: Mr. T Cloete Housing Administration Manager Housing Admin: Mr NV Konjwayo Traffic Services Chief Traffic Services: Mr J Cornelissen Human Settlement Services Senior Manager Human Settlement: Mr F Rhoda Protective Services Deputy Executive Manager: Mr V Petersen Community Development Manager Community Development: Mr JGP Rhoda Fire Services Chief Fire Services: Mr D Damons Housing Projects Manager Housing Projects: Mr C Jacobs Libraries and Information Services Manager Libraries and Information Services: Ms L Thomas HR: Labour Relations Officer Chief Labour Relations Officer: Mr P la Grange HR: Training Officer Chief Training Officer: Ms M Sibeko HR: Personnel Admin Chief Personnel Officer: Ms T van der Westhuizen Information & Communication Technology Chief Information Officer: Mr FB Theron Legal Services Manager: Legal Services : Vacant Corporate Services Manager Administration: Mr Francois Goosen Properties and Estate Manager: Properties and Estate: Mr Nico Marais Electrical Services DEM Electrical Services: Mr A Albertyn Electrical Services: Manager Operations and Maintenance: Mr M Fredericks Electrical Services Chief Electrical Engineering Technician: Mr D Gabriels Office of the City Manager Chief Audit Executive: Ms R Jaftha Office of the City Manager Ombudsman: Ms LL Nojozi Office of the City Manager Chief Risk Officer: Mr G Dippenaar Office of the City Manager Manager IDP/PMS: Ms F Qebenya Table 186: Second- and Third-tier Structure

192

APPENDIX D: FUNCTIONS OF MUNICIPALITY

Municipal Functions Function applicable to Municipality Municipal Functions Yes No Constitution of the Republic of South Africa, 1996 (Act 108 of 1996), Schedule 4, Part B functions: Air pollution √ Building regulations √ Child care facilities √ Electricity and gas reticulation √ Firefighting services √ Local tourism √ Municipal airports √ Municipal planning √ Municipal health services N/A Municipal public transport N/A 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. √ Pontoons, ferries, jetties, piers and harbours, excluding the regulation of international shipping and related matters. √ Stormwater management systems in built-up areas √ Trading regulations √ Water and sanitation services limited to potable water supply systems and domestic wastewater and sewerage disposal systems. √ Constitution of the Republic of South Africa, 1996 (Act 108 of 1996), Schedule 5, Part B functions: Beaches and amusement facilities √ Billboards and the display of advertisements in public places √ Cemeteries, funeral parlours and crematoria √ 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 of dogs √ Licensing and control of undertakings that sell food to the public √ Local amenities √ Local sports facilities √ Markets √ Municipal abattoirs √ Municipal parks and recreation √ Municipal roads √ Noise pollution √ Pounds √ Public spaces √ Refuse removal, refuse dumps and solid waste disposal √ Street trading √ Street lighting √ Traffic and parking √ Table 187: Municipal Functions

193

APPENDIX E: WARD REPORTING

Please take into account the following when examining the Annual Report of 2016/17:

 The election of ward committees commenced in September 2016 to October 2016 after the August 2016 municipal elections (no ward committee meetings held for the period July 2016 to September 2016); and  The report includes IDP meetings that took place in September 2016 and April 2017.

Number of Number of Number of Monthly monthly quarterly Committee Reports Ward Name of Ward Councillor and elected Committee public Ward established submitted to Number Ward Committee Members meetings held Meetings Yes/No Speaker’s during the held during Office on year the year time WARD COUNCILLOR Cllr C Kroutz WARD COMMITTEE MEMBERS Mrs Nonthembelani Sidubulekana Mrs Wilna Elizabeth Rabe Mr Charles Abrahams 1 Mrs Brenda Maureen Carelse Yes 3 3 4 Mrs Anna Eliza Januarie Mr Joshwin Pietersen Mr Dolf Marang Mr Dawid Nicholas Gertse Ms Carlin Christelle Goosen Mr Francois Brown WARD COUNCILLOR Cllr H.J. Kotze WARD COMMITTEE MEMBERS Mrs Christine Van Wyk Mr Herman Ehlers Mr Stephan Landsberg 2 Mrs Marinda Ehlers Yes 4 4 4 Mrs Marlene Weyers Mrs Sybil Kotzé Mr Hennie Engelbrecht Mr Daan Aggenbach Mrs Petro Botha Mr Niel Schoeman WARD COUNCILLOR Cllr WE Smit WARD COMMITTEE MEMBERS Mr Abel Mentoor Ms Magrieta Futhwa Mr Gavin Andrews 3 Mr Tshepang Shayne Hlapisi Yes 2 2 3 Ms Janine Nontas Mr Nicolaas Geldenhuys Mr Damon Mintoor Mr Bennie Roberts Mr Johannes Van Zyl Smit Mr Toit Wessels 4 WARD COUNCILLOR

194

Number of Number of Number of Monthly monthly quarterly Committee Reports Ward Name of Ward Councillor and elected Committee public Ward established submitted to Number Ward Committee Members meetings held Meetings Yes/No Speaker’s during the held during Office on year the year time Cllr J. Miller WARD COMMITTEE MEMBERS Mrs Amanda Du Toit Mr Carel Hendrick Stander Mrs Maria Elizabeth Jacoba Kotze Yes 3 3 3 Mrs Amarie le Roux Mrs Anrita Schreuder Mr Ernest Derek Taylor Mr Ronald Brand Mr Johannes Frederick Kotze WARD COUNCILLOR Cllr P. Mbenene WARD COMMITTEE MEMBERS Mrs Nozuko Joyce Magwaza Mr Nkululeko Sydwell Xaba Mrs Evelin Pietersen Mrs Charlene Davids 5 Yes 4 4 7 Mr Mtutuzeli Ngece Ms Nosicelo Bobelo/Tyasi Ms Brobretha Lucrecea Rooi Mrs Nomthandazo Roseline Cetywayo/ Landu Mrs Christeleen Ephraim Ms Ann Visagie WARD COUNCILLOR Cllr T Z Nomana/ Nqoro WARD COMMITTEE MEMBERS Ms Yolanda Magqazana Mr Khaya Juwele Mr Sindile Msebenzi 6 Mr Anele Gidion Maki Yes 7 7 9 Mr Nicholus Sandise Goso Mr Zuko Abednego Xhaso Mr Mziwonke Diko Ms Sisanda Primrose Qelo Ms Nontando Patience Booi Mr Nceba Mpiliswana WARD COUNCILLOR Cllr RB Arnolds WARD COMMITTEE MEMBERS Mr Hendry Joseph Mr Eric Dampies Mrs Anneline Isaacs 7 Mrs Saromeo Oliphant Yes 2 2 3 Ms Christina Albertus Mr Davey Simonse Mr s Monica Ryan Mr David Geduld Ms Bellmordene Robson Mrs Elmorie Julies WARD COUNCILLOR 8 Yes 3 3 5 Cllr N. Zikhali

195

Number of Number of Number of Monthly monthly quarterly Committee Reports Ward Name of Ward Councillor and elected Committee public Ward established submitted to Number Ward Committee Members meetings held Meetings Yes/No Speaker’s during the held during Office on year the year time WARD COMMITTEE MEMBERS Ms Nonzoliso Giqwa Mr Mputumi Pal Foreman Ms Bulelwa Sylvia Gxowa Mrs Shiela Witbooi Mr Sinokolo Melvin Godlo Ms Nonceba Doreen Mpepeto Ms N.O Johnson Mr Mbulelo Mcimbi Ms Ntomboxolo Godongwana Mr M Ngontsolo WARD COUNCILLOR Cllr TC Mangena WARD COMMITTEE MEMBERS Ms Esteline Thandiwe Xayimpi Ms Sandisiwe Cynthia Martins Ms Babalwa Merikana 9 Mr Zeniwokhe Ndwanya Yes 1 1 5 Mrs Nomakhwezi Siko Mr Mongezi Dlwathi Ms Nozuko Grace Ngqolobe Mr Lubabalo Skeyi Mrs Noncithakalo Tayitayi Mr Monwabisi Vunguvungu WARD COUNCILLOR Cllr C Kearns WARD COMMITTEE MEMBERS Mr Jovan Cupido Mr Berend Boltman Mrs Audrey Mackay 10 Ms Jocelyn Legodi Yes 2 2 4 Mr Henrich Appollis Mr Christiaan Abrahams Mr Grant Theo Williams Ms Lauren Hendricks Mr Williams Kearns Mrs Martha Mitchell WARD COUNCILLOR Cllr AC Stowman WARD COMMITTEE MEMBERS Mr Karel Jacobs Ms Samantha Maarman Mr Henry Jacobs 11 Yes 3 3 3 Ms Aimee Edna Stowman Mr. Willem Johannes Mettler Ms Rafeeqah Abrahams Mr Randall Africa Manuel Ms Leandra Smith Mrs Sindiswa Daphney Allah WARD COUNCILLOR 12 Cllr M. Nobula Yes 2 2 5 WARD COMMITTEE MEMBERS

196

Number of Number of Number of Monthly monthly quarterly Committee Reports Ward Name of Ward Councillor and elected Committee public Ward established submitted to Number Ward Committee Members meetings held Meetings Yes/No Speaker’s during the held during Office on year the year time Mr Zolile William Mafila Mr Monwabisis Lawrence Lolwana Ms Lityshia Kwili Mrs Elda Matobs Tose Mrs Gladys Maseng Mr Charles Mzimkhulu Mtiya Mrs Noluthando Hazel Rasmeni Ms Nonzaliseko Mateta Mrs Masentle Lakaje Mr Dumile Conana WARD COUNCILLOR Cllr S Ross WARD COMMITTEE MEMBERS Mr Rashud Hendrikse Mrs Angelique Mamani Ms Veronica Koopman 13 Ms Delie Abels Yes 3 3 4 Mrs Muneebah Jannicke Mrs Juliana Tessa Demas Ms Marlene Fredericks Ms Angelina Solomon Ms Sonia Falmer Mrs Wilhelmina Fourie WARD COUNCILLOR Cllr J De Wet WARD COMMITTEE MEMBERS Mrs Nomathumeka Fakwa Mr Ayanda Ringane Mr David Linee 14 Mrs Rosette Warries Yes 2 2 4 Mr Calvin Festus Ms Goergelene Kermis Mrs Nokubonga Majola Mr Mlindeli Wiseman Ntunja Ms Brenda von Willingh Mrs Cynthia Philander WARD COUNCILLOR Cllr LW Niehaus WARD COMMITTEE MEMBERS Ms Christina Elizabeth Niehaus Mr Willem Serdyn Mrs Maria Whitehead 15 Mrs Elsje Anne Kruger Yes 4 4 3 Mr Louis Herold Louw Mrs C.A Louw Mr Ludwig Thiart Mr E. Mouton Ms M. Haasbroek Mrs Em-Em Zaayman WARD COUNCILLOR 16 Cllr D. Blanckenberg Yes 7 7 6 WARD COMMITTEE MEMBERS

197

Number of Number of Number of Monthly monthly quarterly Committee Reports Ward Name of Ward Councillor and elected Committee public Ward established submitted to Number Ward Committee Members meetings held Meetings Yes/No Speaker’s during the held during Office on year the year time Mrs Hazl Ngcanga Mr Phumthumile Ntshayi Ms B.J Mbenenge Mr Mlungiseleli Ndara Ms Nolu Thando Maseti Mr Sakhele John Mcimbi Mr Sabelo Gili Mr Micheal Madubela Mr Khalima Frans Mr Lumkile Stokkies Matywatywa WARD COUNCILLOR Cllr H. Matthee WARD COMMITTEE MEMBERS Mrs Beatrice Kachu Ms Orechia Appolis Mr Faried Williams 17 Mr Johannes Heyns Yes 5 5 4 Mr Thomas Spies Mr Claude Van Zyl Ms Mina Kock Mrs Annelize Van Rooyen Mrs Hendrik Johannes Venter Ms Denisia Smith WARD COUNCILLOR Cllr AML Buckle WARD COMMITTEE MEMBERS Mrs Karen Barnard Mrs Debinique Williams Mrs Johanna Schweidler 18 Mr Phillip Johannes Visser Yes 5 5 3 Mr Jean-Claude Le Cordeur Mr Jerry Swarts Mrs Nozizwe Zicina Mosala Mr Jean Pierre Joubert Mr Petrus Pietersen Mr HED Du Plessis WARD COUNCILLOR Cllr T. Bester WARD COMMITTEE MEMBERS Mr H.J Du Toit Mr Christiaan Jacobus Visser G. Stofberg 19 Mrs J.E Swanepoel Yes 3 3 4 Mr P.F Swanepoel Mr A.V Harris Mr Willem Esterhuizen Mrs Varushka Smith Mr Johannes Andrews Ms Johanna Jacoba du Toit WARD COUNCILLOR 20 Cllr P. Cupido Yes 4 4 3 WARD COMMITTEE MEMBERS

198

Number of Number of Number of Monthly monthly quarterly Committee Reports Ward Name of Ward Councillor and elected Committee public Ward established submitted to Number Ward Committee Members meetings held Meetings Yes/No Speaker’s during the held during Office on year the year time Mr Marshall Alexander Ms Jennifer Botha Ms Alida Meyer Mr Curtley Fisher Mr Aubrey Adams Ms Alecia Francke Mrs Elliose Daniels Mr Eden Watts Mrs Lenie Borrings Mrs Rochelle Bam WARD COUNCILLOR Cllr E Gouws WARD COMMITTEE MEMBERS Mrs Margaret Wildschut Mr Johnley Muller Mrs Rosaline Rossouw 21 Mrs C.C Dedericks Yes 4 4 4 Mrs Mary-Ann Leon Ms Cherie Williams Ms Alima Ficks Ms Marinda Paulse Mr Isak John de Kok Ms Marlene Fisher WARD COUNCILLOR Cllr F. Cupido WARD COMMITTEE MEMBERS Mr Steven Frolicks Mr Peter Simon Daniels Mrs Mary Alexander 22 Ms Lenise Speelman Yes 3 3 5 Mr Grahams Rooks Mrs Cheryl Bothma Ms Rozanne Botha Mr Auben Nomdoe Mr D. Arendse Mrs Esmeralda Solomon WARD COUNCILLOR Cllr F. Jacobs WARD COMMITTEE MEMBERS Mrs Kathleen Van Reenen Mrs Ruth Williams Mrs Elizme Du Toit 23 Mrs Jacoba Isobel Heunis Yes 2 2 3 Mr Leslie Watson Mr Nicholaas Petrus Smit Mrs Susanna Marx Mr Sammy Petersen Mr John Williams Ms Nicole Heugh WARD COUNCILLOR 24 Cllr MM Adriaanse Yes 3 3 3 WARD COMMITTEE MEMBERS

199

Number of Number of Number of Monthly monthly quarterly Committee Reports Ward Name of Ward Councillor and elected Committee public Ward established submitted to Number Ward Committee Members meetings held Meetings Yes/No Speaker’s during the held during Office on year the year time Mr Kervin Patrick Bowers Ms Rachel Andrews Mr Jonathan Fredericks Mrs Brysina Kruger Mrs Selma Jolanda Claasen Mr Edward John Rudolf Mrs Anthia Caren Claasen Mr Micheal Solomon Nathan Ms Elizabeth Windvogel Mrs Mina Scheepers WARD COUNCILLOR Cllr L. van Niekerk WARD COMMITTEE MEMBERS Mr Mark Andrew Lackay Ms Christolene Vries Mr J.L Fillies 25 Ms Sheila September Yes 7 7 7 Ms Rachel Kroutz Mr Edgar Arendse Mr John De Kock Mrs Frangelene Jantjies Mr Francisco Karloof Naude Mrs Regina Cupido WARD COUNCILLOR Cllr J. Anderson WARD COMMITTEE MEMBERS Mrs Sarah Theresa Links Ms Chante Leagh Hendricks Mr Warie Retief 26 Ms Carmelita Liebenberg Yes 5 5 6 Mrs Catherine Williams Ms Monique Booysen Ms Serina Pauline Sheldon Mrs Du Blanche Krautz Ms Selma Crotz Mr Anthony Esau La Douce WARD COUNCILLOR Cllr V. Booysen WARD COMMITTEE MEMBERS Mrs Karin Hendricks Mr Johannes Daniels Mr Maans Brown 27 Ms Fredricka Evelina Philander Yes 3 3 6 Ms Whilemina Hendricks Mrs Magdelena Botha Mr Karools Isaacs Mrs Doreen Kilowan Ms Gwendelene Davids Mrs Angela Brown WARD COUNCILLOR 28 Cllr RH van Nieuwenhuyzen Yes 1 1 3 WARD COMMITTEE MEMBERS

200

Number of Number of Number of Monthly monthly quarterly Committee Reports Ward Name of Ward Councillor and elected Committee public Ward established submitted to Number Ward Committee Members meetings held Meetings Yes/No Speaker’s during the held during Office on year the year time Mr Tom Cowie Mr Sidney Johannes Ms Angelique Milly Stevens Ms Katrina Adams Mrs Dina Magrieta Johnson Mr Japie H Arendse Mr Johannes Muller Mrs Cecillia Mitchell Mr John-Hilton Stevens Mrs Regina Abrahams/Moses WARD COUNCILLOR Cllr L. Willemse WARD COMMITTEE MEMBERS Mr Nicholaas Mettler Mrs Sonia Appollis Mr Dawid Mandla Futhwa 29 Mr Henry Minnaar Yes 4 4 4 Mr Stephen Abrahams Mr Basil Arendse Mr Jonatha Liebenberg Mrs Marjorie Zyster Mr Avron Appollis Mr William Moses Walters WARD COUNCILLOR Cllr J. Smit WARD COMMITTEE MEMBERS Ms Maria Regina Carolus Ms Sophia Evelyn Wessels Ms Suzette Nicolene Scholtz 30 Ms Christina Johanna Visagie Yes 1 1 3 Ms Sophie Pauline Visagie Mr Daniel Andreas Kotze Mr John Jacob Peters Mrs Anna Aletta De Vries Ms Chandre Blaauws Mr Marcello Serfontein WARD COUNCILLOR Cllr G. Ford WARD COMMITTEE MEMBERS Mr Desmond Boois Mr Zandisile Killion Cekiso Mr Mziwabantu Wilfred Cekiso 31 Mrs Charlotte Morkel Yes 2 2 4 Mr A. Coetzee Mrs Elsabe Cedras Ms Alida Palele Ms Joan Adams Msrs Christelle Samuels Mr Klaas Nicky Morkel WARD COUNCILLOR 32 Mr L.V Nzele Yes 3 3 5 WARD COMMITTEE MEMBERS

201

202

APPENDIX F: WARD INFORMATION

Ward Title: All Wards Capital Projects: Ten largest 2016/17 (Full list in Appendix N) Total Rand No. Project Name and Detail Start date End date Value 1. Wellington WWTW: Rehabilitation & Extent 1 July 2016 30 June 2017 86,404,814 2. Upgrade Bulk Sewer : Southern Paarl 1 July 2016 30 June 2017 42,139,995 3. Kliprug Substation 132/11kV 1 July 2016 30 June 2017 41,351,325 4. 8 ML Courtrai Reservoir 1 July 2016 30 June 2017 34,915,895 5. Saron WWTW: Rehabilitation and upgrading 1 July 2016 30 June 2017 28,408,640 6. 11 ML Newton Reservoirs & Pump Station 1 July 2016 30 June 2017 23,296,988 7. Upgrading of BRB North 1 July 2016 30 June 2017 20,335,556 8. Upgrade and Extensions to Paarl WWTW 1 July 2016 30 June 2017 20,062,013 9. Welvanpas WTW & Out Buildings 1 July 2016 30 June 2017 16,961,691 10. Replacement of Strawberry King Bulk Water 1 July 2016 30 June 2017 15,722,006 None of the ten largest capital projects were allocated to a specific ward. Capital projects benefited more than one ward. See Appendix N Table 189: Ward – Capital Projects

Basic Service Provision Detail Water Sanitation Electricity Refuse Housing Households with minimum service delivery 68,129 67,243 68,426 68,426 Households without minimum service delivery 297 1,183 2,619 0 Total households* 68,426 68,426 71,045 68,426 Houses completed in year 99 Shortfall in housing units 41,977 *Including informal settlements Table 190: Basic Service Provision

Top four Service Delivery Priorities (Highest priority first) No. Priority name and detail Progress during 2016/17 1 Housing 99 houses provided 2 Electricity 3.99% electricity losses 3 Skills development Entrepreneurs skills development program implemented 4 Job creation 1,600 work opportunities created Table 191: Top four Service Delivery Priorities

203

APPENDIX G: RECOMMENDATIONS OF THE MUNICIPAL AUDIT COMMITTEE 2016/17

Municipal Audit Committee Recommendations Meeting Adopted by Recommendations during 2016/17 Date Council on Risk Management:  Risk Management continues to be the focus of the Executive Management Team;  The corrective steps as agreed to by the management team are being implemented; and  The Audit Committee continue to follow up on the corrective steps taken by management. Internal Audit:  The organisational structure of Internal Audit remains adequate and independent;  The Internal Audit reports submitted to the Audit Committee were noted and that the remaining Internal Audit reports for the year under review will be completed before the conclusion of the external audit;  Management is advised to act timeously on the recommendations made by Internal Audit in their reports; and  The Audit Committee notes that the Internal Audit methodology will be implemented at the commencement of the 2016/17 audits. The 25/08/2016 26/10/2016 software for Internal Audit and Risk Management is due to be implemented before end of December 2016. Ethics Management:  Once the formal appointment of the permanent City Manager has been confirmed, the management team should then consider consolidating their ethics issues in a formal policy that reflects their behaviour and Code of Conduct. Administrative Matters:  Council notes that the Audit Committee has complied with the requirements as set out in Sections 165 and 166 of the MFMA relating to the draft annual financial statements and that the outcome will be included in the annual Audit Committee report; and  Council notes the progress with the quarterly reporting on the Performance Management System and that the annual report submitted for final audit, addresses the concerns raised by Internal Audit relating to the portfolios of evidence being accurate and in agreement with the Ignite System. Internal Audit:  The Audit Committee confirms that the organisational structure of Internal Audit is adequate and independent;  The internal audit reports submitted to the Audit Committee were noted and that the remaining internal audit reports for the year under review will be completed as scheduled;  Management act timeously on the recommendations made by Internal 08/12/2016 Audit in their reports; 22/02/2017  The Audit Committee notes that the Internal Audit methodology has been implemented at the commencement of the 2016/17 audits; and  The definitions of national key performance indicators need to be clarified in terms of appropriateness and applicability to this municipality.

204

Municipal Audit Committee Recommendations Meeting Adopted by Recommendations during 2016/17 Date Council on Annual Financial Statements:  The Annual Financial Statements for the year ended 30 June 2016 be approved as read with the Auditor General’s report. Risk Management:  Risk Management continues to be the focus of the Executive Management Team;  Corrective steps as agreed by the Management team should be implemented; and  The Audit Committee continue to follow up on the corrective steps taken by management. Ethics Management:  Once the formal appointment of the permanent City Manager has been confirmed, the management team should then consider consolidating their ethics issues in a formal policy that reflects their behaviour and code of conduct. Administrative Matters:  The Chairman of the Audit Committee meet with the Executive Mayor and Acting City Manager before submitting the report to Council. Internal Audit:  The Audit Committee confirms that the organisational structure of Internal Audit is adequate and independent;  The internal audit reports submitted to the Audit Committee were noted and that the remaining internal audit reports for the year under review will be completed as scheduled;  Management act timeously on the recommendations made by Internal Audit in their reports; and  The definitions of national key performance indicators need to be clarified in terms of appropriateness and applicability to this municipality. Risk Management:  The Audit Committee note that risk management continues to be the focus of the Executive Management team;  The corrective steps as agreed to by the management team are being 06/03/2017 implemented; and and  The Audit Committee continue to follow up on the corrective steps 26/04/2017 24/03/2017 taken by management. Ethics Management:  The City Manager be allowed some time to formalise his strategy with Council and the management team should then consider consolidating their ethics issues in a formal policy that reflects their behaviour and code of conduct. Quarterly Performance Reports compiled by Internal Audit:  The management reviews and supervisory checks of the portfolios of evidence should be continuously reviewed and where necessary incorporated into the standard operating procedures for the performance indicators. Review of the Performance Management System:  The Performance Management System was effectively carried out during the period under review;  The Executive Management Team were all appropriately rated for outcomes of their Directorates;

205

Municipal Audit Committee Recommendations Meeting Adopted by Recommendations during 2016/17 Date Council on  The Evaluation Committee was appropriately structured in terms of the guidelines; and  Representatives of Ignite were in attendance to provide guidance and support. Internal Audit:

 The Audit Committee confirms that the organisational structure of

Internal Audit is adequate and independent;

 The internal audit reports submitted to the Audit Committee were

noted and that the internal audit reports for the year under review will

be completed as scheduled;

 The quarterly performance assessment review was carried out by Internal Audit. The completeness and accuracy of the portfolios of evidence require further attention by the strategic management team; and 25/05/2017  Management is advised to act timeously on the recommendations 27/07/2017 made by Internal Audit in their reports Risk Management:  Risk Management continues to be the focus of the strategic management team;  That there has been progress to identify and articulate the key strategic

risks facing the municipality and that the strategic management team will be preparing appropriate response strategies to mitigate these; and  Council note the comprehensive Disaster Management Plan that was presented to the Audit Committee. Table 192: Municipal Audit Committee Recommendations

206

APPENDIX H: LONG-TERM CONTRACTS AND PUBLIC-PRIVATE PARTNERSHIPS

Long-term Contracts (Eight Largest Contracts entered into 2016/17) Rand Name of Service Description of service Start Expiry Project Provider rendered by the Service date of date of Contract Value Manager (Entity or Provider contract contract Municipal) R 18,449,244. New Newton – Leliefontein Hidro-Tech (including 15% Booster Pump Station Phase Systems 10/2016 08/2017 A Kowalewski contingencies, 10% 2 (Mechanical and Electrical (Pty) Ltd escalation and Works) excluding 14% vat) R 24,269,329 Upgrade To Welvanpas Inenzo (including 15% Water Treatment Plant Water (Pty) 10/2016 10/2017 A Kowalewski contingencies, 7.5% (Mechanical and Electrical Ltd escalation and Works) excluding 14% vat) R 102,300,000 Upgrading Of Berg River (including 10% Civils 2000 11/2016 05/2018 C Lotz Boulevard (North), Paarl contingencies and excluding 14% vat) Upgrade And Extension Of Stefanutti The Wellington Waste Water R 29,395,331 Stocks (Pty) Treatment Works to 16ml 10/2016 10/2017 R Brown (excluding 14% vat) Ltd per day – Civil Works (Extension of Contract) Utilities Provision and Administration R 25,032,000 World of a Pre-Paid Vending 02/2017 06/2019 N Keketsi (excluding 14% vat) (Pty) Ltd System Construction of a new R 15,359,459 Atuba Administration Building at (including 10% Construction 01/2017 12/2017 S Frans the Paarl Refuse Transfer contingencies and (Pty) Ltd Station excluding 14% vat) Construction of Strawberry R 12,817,282 Vakala King Bulk Water Pipeline to (including 10% Construction 03/2017 11/2017 A Kowalewski Wellington, Phase 3, Paarl contingencies and (Pty) Ltd (Pipe Jacking Across N1) excluding 14% vat) R 30,146,601 JVZ Vlakkeland Housing Project (including 10% Construction 06/2017 05/2018 W Pretorius Bulk Services contingencies and (Pty) Ltd excluding 14% vat) Table 193: Long-term Contracts

Public-Private Partnerships entered into 2016/17 R`000 Name and Name of Project description of Initiation date Expiry date Value 2016/17 partner(s) manager project No PPP entered into during the year under review Table 194: Public-Private Partnerships entered into 2016/17

207

APPENDIX I: DISCLOSURES OF FINANCIAL INTEREST

Disclosure of Financial Interests Period 1 July 2016 to 30 June 2017 Position Name Description of Financial Interest

Executive Mayor Executive Mayor Cllr CJ Poole Nil

Deputy Executive Mayor Shares and Securities in any company:  Santam  Old Mutual Membership of close corporation:  HR Business Academy CC  Praspherum Skill Academy (NPC) Deputy Executive GC Combrink Interest in any trust: Mayor  Kaizen Family Trust (trustee)  Ruyswyck Trust (La Rochelle School) (trustee) Interest in property:  Residence Pension:  Sanlam

Members of Mayoral Committee Interest in any Trust:  Bosman Adama Werkers Trust Directorship:  Bosman Adama  Wellington Wines Partnership: Portfolio: Rural M Andreas  Bosman Adama Management Interest in Property:  Adama Trust Employment and remuneration:  Board fees Pension:  Sygnia Membership of any close corporation: Portfolio: Social F Jacobs Services  Bed & Breakfast (Membership) Portfolio: Environment, Parks C Kearns Nil and Open Spaces Membership of any close corporation:  Nanini 199 CC (Member) Interest in any trust: Portfolio:  Koos le Roux Family Trust (dormant) JF le Roux Engineering Services Directorship:  Wamaker Bellegings (Pty) Ltd (Secretary) Interest in Property:  Residence

208

Disclosure of Financial Interests Period 1 July 2016 to 30 June 2017 Position Name Description of Financial Interest Employment and remuneration:  Koos le Roux Attorneys (Owner)  Wamaker Bellegings (Company Secretary) Pension:  CRF  MCPF Shares & Securities in any company:  Investments in shares at Sanlam, Old Mutual and PSG Interest in any trust: Portfolio: Planning  J & AA Miller Trust (Trustee) and Economic J Miller  Inherit a property Development and Tourism Interest in property:  Own and 2 other properties Pension:  GEPF Shares & Securities in any company:  Tshethi PTY Ltd (not operating)  Duvhalethu multipurpose co-op (not operating) Portfolio: Corporate Directorship: LP Mokoena Services  Tshethi PTY Ltd  Duvhalethu Subsidies, Grants and sponsorships by any organisation:  SASSA (to be cancelled) Portfolio: Public R Smuts Nil Safety Portfolio: Sport, Recreation, Arts and LT van Niekerk Nil Culture Interest in any Trust:  258 Irmgard Trust Portfolio: Interest in Property: RH van Communication and  Keurbosch, Strand Nieuwenhuyzen IGR  Kampusstudio Potchefstroom Pension:  GEPF Portfolio: Human Settlement and L Willemse Nil Property Management

Speaker Speaker AC Stowman Nil

Chief Whip Shares & Securities in any company:  Old Mutual Chief Whip RA Koegelenberg  Sanlam Interest in any trust:

209

Disclosure of Financial Interests Period 1 July 2016 to 30 June 2017 Position Name Description of Financial Interest  Paarl Gimnasium Trust (Trustee)  Paarl Gimnasium 1980 Trust (Trustee)  C and L Koegelenberg Family Trust (Trustee)  De Berge Trust (Initiator) Interest in property:  Residence  Trust property Councillors Membership of close corporation: AW Abrahams  Entrepreneur: Gardening & Cleaning MM Adriaanse Nil AF Afrika Nil JV Anderson Nil R B Arnolds Nil A Bekeer Nil Interest in property:  50% shares in property T G Bester Pension:  Receives pension Interest in Property: DS Blanckenberg  Not specified V C Booysen Nil Shares & Securities in any company:  Capespan  UE12 Membership of close corporation: Councillor  Tamasa Trading 409 CC (Own member) Interest in any trust:  AML Buckle (owner) AML Buckle Directorship:  Turnstone Trading 28 PTY Ltd (Director) Employment and remuneration:  Favourite Fresh Export (Procurement Manager)  Monte Video Guesthouse (owner) Pension:  Momentum FP Cupido Nil Pension: PB Cupido  CRF Shares & Securities in any company:  Sanlam Interest in property: H R de Goede  Residence Employment and remuneration:  NG Kerk Paarlberg (Office Manager) Pension:

210

Disclosure of Financial Interests Period 1 July 2016 to 30 June 2017 Position Name Description of Financial Interest  Citadel Fund Manager Pension: J de Wet  Municipal Pension Fund B Duba Nil G H Ford Nil Interest in any trust:  Tshibase Catering company  Sigqo Transport Services NN George Directorship:  Owner Subsidies, grants and sponsorships by any organisation:  Child Support grant at social services Employment and remuneration: E Gouws  NGO working as teacher Membership of close corporation: SX Jonas  Gqwesa Cleaning Services (currently non-operational) Shares and securities in any company:  Amampondomise Burial Society PTY Ltd (Owner) Membership of close corporation:  Not active Directorship: MT Klaas  In close corporation that is non-operative Pension:  Want the employer to continue with the current pension fund Subsidies, grants and sponsorships by any organisation:  UIF Interest in any trust:  Elsenburg Sanillen Kollege  Kotze Family Trust Directorship:  Victoria Park H J Kotze Other financial interest in any business undertaking:  AKF Aluminium (Project Manager) Employment and remuneration:  AKF Aluminium (Project Manager) Pension:  Old Mutual C Kroutz Nil Shares & Securities in any company:  Hamba Bhekile L Landu Directorship:  Hamba Bhekile M le Hoe Nil Employment and remuneration: A Lugqola  Robin Trust Nursing Agency (Part time care giver) Subsidies, grants and sponsorships by any organisation:

211

Disclosure of Financial Interests Period 1 July 2016 to 30 June 2017 Position Name Description of Financial Interest  Orphans grants T C Mangena Nil Employment and remuneration:  Paarl District Road Engineers Office ZL Masoka Pension:  GEPF Interest in any trust:  Kaizan Trust  Matthee Fam Trust  Dala Trust HJN Matthee  Du Toit Trust Financial interest in business undertaking:  Accounting solutions Employment and remuneration:  Berg River Irrigation J Matthee Nil NP Mbenene Nil Subsidies, grants and sponsorships by any organisation: MN Mdunusie  Child support grant Pension: WPD Meyer  SASSA Shares & Securities in any company:  Nkomfa Engineering Solution PTY Ltd Membership of close corporation:  Mkabile Production company Directorship: ND Mkabile  Mkabile Production company Partnership:  Nkomfa Engineering Solution PTY Ltd Other financial interest in any business undertaking:  Gospel artist Shares & Securities in any company:  Mvulama Holdings TR Mpulanyana  Directorship:  Director Mvulama Holdings Interest in any trust:  Pinksterpark Trustee member LW Niehaus  Helderberg Pension:  Local Government Pension: MD Nobula  CRF Declaration completed in full. TZ Nomana Nqoro Declared interest in all fields, but did not specify LV Nzele Nil WF Philander Nil

212

Disclosure of Financial Interests Period 1 July 2016 to 30 June 2017 Position Name Description of Financial Interest SC Rens Nil Membership of close corporation:  Richcorp Trading cc Directorship: AM Richards  Ou Tuin Development (Pty) Ltd  Paarl Property Partnership (Pty) Ltd Interest in property:  Owner of erf CS Ross Nil Shares & Securities in any company:  Declaration completed, not specified Membership of close corporation:  Declaration completed, not specified Interest in any trust: LS Sambokwe  Declaration completed, not specified Other financial interest in any business undertaking:  Declaration completed, not specified Interest in property:  Declaration completed, not specified Directorship:  Solar Energy Land (Director) Interest in property: ND Sauerman  Residence Employment:  Consultant Labour Relations Act S September Nil Membership of close corporation:  Padlangs Boerdery Ko-op (Business not started yet) J Smit Pension:  Government Interest in property: W E Smit  Residence Employment :  Part Time – Housing Rental EA Solomons  Housing rental - Agent for Transnet Properties  Work on commission basis M Vika Nil Interest in any Trust:  Abri Trust (Trustee) Partnership: A J van Santen  A J van Santen Boerdery (Partner) Employment and remuneration:  Admin Manager - A J van Santen Boerdery M Vika Nil N Zikhali Nil

Executive Management

213

Disclosure of Financial Interests Period 1 July 2016 to 30 June 2017 Position Name Description of Financial Interest City Manager Dr Leibbrandt None

Chief Financial Mr J Carstens None Officer Executive Director: Ms A de Beer None Corporate Services Executive Director: Mr S Johaar None Corporate Services Executive Director: Ms L Waring None Planning Services Executive Director: Mr G Boshoff None Community Services Executive Director: Mr D Louw None Engineering Services  Founder and beneficiary of Capensis Trust  A trustee of Winelands Village Home Owners Association Executive Director: Mr D Hattingh  A trustee of Fremco Trust Engineering Services  A friend to Grant Mackintosh who is a founder of Emanti Management. *Financial interests to be disclosed even if they were incurred for only part of the year. Table 195: Disclosure of Financial Interests

214

APPENDIX J: REVENUE PERFORMANCE BY VOTE AND BY SOURCE

APPENDIX J (I): REVENUE PERFORMANCE BY VOTE

Revenue Performance by GFS Vote R’000 2016/17 2015/16 2016/17 % Variances Vote Description Original Revised Original Revised Actual Actual Budget Budget Budget Budget Executive and Council 19,668 16,519 21,043 22,705 37.4% 7.9% Budget and Treasury Office 248,933 242,582 241,532 285,670 17.7% 18.2% Corporate Services 98,064 105,743 108,481 113,576 7.4% 4.7% Community and Social Services 16,502 17,985 25,556 18,209 1.25% -28.7% Sports and Recreation 2,644 3,009 4,902 4,371 45.2% -10.8% Public Safety 71,292 68,434 96,243 88,992 30.0% -7.5% Housing 52,728 73,436 48,836 43,214 -41.1% -11.5% Health 0 0 0 0 0.0% 0.0% Planning and Development 6,439 7,266 7,765 6,212 -14.5% -20.0% Environmental Protection 696 536 536 849 58.5% 58.5% Road Transport 15,103 19,129 20,392 20,190 5.5% -0.9% Electricity 948,587 1,069,720 1,068,833 1,075,467 0.5% 0.6% Water 183,857 204,316 204,316 208,918 2.2% 2.2% Wastewater Services 154,386 141,512 152,365 151,582 7.1% -0.5% Solid Waste Services 36,670 41,795 41,795 42,885 2.6% 2.6% Total revenue by GFS vote 1,855,569 2,011,987 2,042,599 2,082,848 3.5% 1.9% Table 196: Revenue Performance by GFS Vote

215

APPENDIX J (II): REVENUE PERFORMANCE BY SOURCE

Revenue Performance by Source R’000 2016/17 2015/16 2016/17 % Variance Description Original Revised Original Revised Actual Actual Budget Budget Budget Budget Property rates (PR) 209,945 223,574 223,574 237,762 6.3% 6.3% PR interest changes 1,076 1,471 1,471 1,356 -7.8% -7.8% Electricity service charges 908,329 1,021,794 1,021,794 1,034,768 1.2% 1.2% Water service charges 166,691 178,475 178,475 186,435 4.4% 4.4% Sanitation service charges 79,059 93,970 93,970 89,838 -4.4% -4.4% Refuse service charges 97,465 110,246 110,246 110,729 0.4% 0.4% Other service charges 34 40 40 39 -3.50% -3.50% Rentals: Facilities and equipment 24,435 25,207 25,207 27,479 9.0% 9.0% Interest earned: Investments 19,261 15,384 19,400 22,070 43.4% 13.7% Interest earned: Debtors 11,151 12,064 12,028 14,648 21.4% 21.7% Dividends received 15 15 0 0 -100.0% 0.0% Fines 52,716 53,627 76,445 66,815 24.5% -12.6% Licenses and permits 15,857 15,428 15,428 17,333 12.3% 12.3% Agency services 0 0 0 0 0.0% 0.0% Transfers recognised: Opex 146,255 182,601 177,382 158,678 -13.1% -10.5% Other revenue 49,559 20,287 21,403 41,458 104.3% 93.7% Gains on disposal of PPE 4,925 250,000 250,000 0 -100.0% -100.0% Total revenue (capex grants excluded) 1,786,773 1,954,441 1,977,119 2,009,415 2.8% 1.6% Table 197: Revenue Performance by Source

216

APPENDIX K: CONDITIONAL GRANTS RECEIVED: EXCLUDING MIG

Conditional Grants: excluding MIG R’000 % Variance Revised Details Budget Actual Revised Budget Budget Budget

Neighbourhood Development Partnership Grant Public Transport Infrastructure and Systems Grant Municipal Systems Improvement Grant - - - - - Other Specify: Finance Management Grant 1,475 1,475 1,475 0% 0% Integrated National Electrification Grant 5,000 5,000 4,052 -19% -19% Electricity Demand Side Grant 5,000 5,000 4,684 -6% -6% Regional Bulk Infrastructure Grant 1,900 1,900 17,871 841% 841% Expanded Public Works Programme 1,352 1,352 2,357 74% 74% Total 14,727 14,727 30,441 107% 107% Table 198: Conditional Grants excluding MIG

217

APPENDIX L: CAPITAL EXPENDITURE – NEW AND UPGRADE/RENEWAL PROGRAMMES

APPENDIX L (I): CAPITAL EXPENDITURE – NEW ASSETS PROGRAMME

Capital Expenditure R`000 2015/16 2016/17 Future Description Original Revised 2017/ 2018/ 2019/ Actual Actual Budget Budget 2018 2019 2020

Capital expenditure by Asset Class Infrastructure Total 141,629 338,031 294,226 294,062 227,771 132,641 110,517 Infrastructure: Road transport – Total 41,929 39,338 37,687 37,659 5,965 3,065 15,365 Roads, pavement and bridges 41,929 39,338 37,687 37,659 5,965 3,065 15,365 Stormwater 0 0 0 0 0 0 0 Infrastructure: Electricity – Total 13,490 125,243 75,596 75,508 24,445 2,581 15,480 Generation 0 0 0 0 0 0 Transmission and Reticulation 12,697 123,825 74,761 74,678 24,445 2,581 15,480 Street lighting 793 1,417 836 831 0 0 0 Infrastructure: Water – Total 48,186 57,227 91,884 91,853 20,066 49,758 13,620 Dams and Reservoir 24,078 36,087 73,320 73,296 4,740 22,450 0 Water purification 0 0 0 0 3,561 20,536 4,350 Reticulation 24,108 21,140 18,564 18,556 11,765 6,772 9,270 Infrastructure: Sanitation – Total 25,356 110,848 88,367 88,367 177,294 72,600 58,582 Reticulation 3,223 1,600 1,230 1,230 22,258 34,194 26,840 Sewerage purification 22,133 109,248 87,137 87,137 155,037 38,407 31,742 Infrastructure: Other – total 12,669 5,375 693 675 0 4,637 7,471 Waste management 9,744 3,875 693 675 0 4,637 6,971 Transportation 0 0 0 0 0 0 0 Gas 0 0 0 0 0 0 0 Other 2,924 1,500 0 0 0 0 500 Community Total 24,998 18,330 25,090 24,510 9,043 8,043 9,544 Parks and gardens 848 574 1,101 1,045 0 200 0 Sports fields and stadia 16,936 3,013 276 252 0 0 0 Swimming pools 0 0 0 0 0 0 0 Community halls 336 7,664 6,533 6,111 2,773 2,843 4,264 Libraries 0 0 0 0 0 0 0 Recreational facilities 1,524 5,479 10,712 10,635 4,620 4,950 5,280 Fire safety and emergency 0 0 0 0 0 0 0 Security and policing 3,650 0 5,045 5,045 0 0 0 Busses 0 0 0 0 0 0 0 Clinics 0 0 0 0 0 0 0 Museums and art galleries 0 0 0 0 0 0 0 Cemeteries 0 0 0 0 1,650 0 0 Social rental housing 1,653 1,600 1,350 1,350 0 50 0 Heritage assets – Total 0 0 0 0 0 0 0 Buildings 0 0 0 0 0 0 0

218

Capital Expenditure R`000 2015/16 2016/17 Future Description Original Revised 2017/ 2018/ 2019/ Actual Actual Budget Budget 2018 2019 2020 Other 0 0 0 0 0 0 0 Investments properties – Total 0 0 0 0 0 0 0 Housing development 0 0 0 0 0 0 0 Other 0 0 0 0 0 0 0 Other assets 30,618 57,378 43,678 43,223 25,861 21,724 20,537 General vehicles 0 0 0 0 0 0 0 Specialised vehicles 30,618 57,378 43,678 43,223 25,861 21,724 20,537 Plant and equipment 10,923 0 0 0 3,568 6,320 6,636 Computers – hardware/equipment 0 0 0 0 0 0 Furniture and other office equipment 1,283 5,272 6,519 6,303 325 1,142 150 Abattoirs 3,035 2,970 4,054 4,033 4,250 2,600 2,100 Markets 1,020 625 889 848 11,018 10,089 9,954 Civic Land and Buildings 0 0 0 0 0 0 0 Other buildings 0 0 0 0 0 0 0 Other land 50 100 4,603 4,595 6,700 1,532 1,652 Surplus Assets (Investment / inventory) 9,315 31,153 24,448 24,429 0 40 45 Other Assets: Other 320 0 0 0 0 0 0 Agriculture assets 4,673 17,257 3,164 3,016 0 0 0 List subclass 4,673 17,257 3,164 3,016 0 0 0 Biological assets 0 0 0 0 0 0 0 Lists subclass 0 0 0 0 0 0 0 Intangibles 0 0 0 0 0 0 0 Computers – software and programming 0 0 0 0 0 0 0 Other (list subclass) 0 0 0 0 0 0 0 Total Capital Expenditure on assets 197,245 414,239 364,470 363,271 263,675 162,908 141,098 Table 199: Capital Expenditure – New Assets Programme

219

APPENDIX L (II): CAPITAL EXPENDITURE – UPGRADE/RENEWAL PROGRAMME

Capital Expenditure – Upgrade/Renewal Programme* R`000 2015/16 2016/17 Future Description Original Revised 2017/ 2018/ 2019/ Actual Actual Budget Budget 2018 2019 2020

Capital expenditure by Asset Class Infrastructure Total 107,290 161,803 161,467 161,086 322,573 245,241 168,879 Infrastructure: Road transport – Total 19,185 26,110 26,075 26,073 63,830 78,949 37,846 Roads, pavements and bridges 19,185 26,110 26,075 26,073 58,830 71,449 29,846 Stormwater 0 0 0 0 5,000 7,500 8,000 Infrastructure: Electricity – Total 17,132 23,973 12,117 11,758 70,615 80,857 54,218 Generation 0 0 0 0 0 0 0 Transmission and reticulation 17,132 23,973 12,117 11,758 70,615 80,857 54,218 Street lighting 0 0 0 0 0 0 0 Infrastructure: Water – Total 16,658 15,711 20,538 20,538 98,676 40,534 61,674 Dams and reservoir 0 0 0 0 29,628 7,500 0 Water purification 516 3,750 750 750 27,836 0 0 Reticulation 16,142 11,961 19,788 19,788 41,212 33,034 61,674 Infrastructure: Sanitation – Total 53,645 95,008 102,737 102,717 89,452 44,901 15,141 Reticulation 13,086 33,608 50,747 50,751 13,100 10,149 2,800 Sewerage purification 40,559 61,400 51,989 51,966 76,352 34,752 12,341 Infrastructure: Other – total 671 1,000 0 0 0 0 0 Waste management 671 1,000 0 0 0 0 0 Transportation 0 0 0 0 0 0 0 Gas 0 0 0 0 0 0 0 Other 0 0 0 0 0 0 0 Community Total 4,077 11,877 8,324 8,265 32,604 24,275 22,006 Parks and gardens 505 50 390 390 250 250 0 Sports fields and stadia 3,508 9,997 6,350 6,350 24,844 21,131 13,936 Swimming pools 16 0 0 0 0 0 0 Community Halls 0 0 0 0 563 279 295 Libraries 0 0 196 173 2,982 0 3,240 Recreational facilities 0 915 744 712 2,265 1,015 2,535 Fire, safety and emergency 0 0 0 0 0 0 0 Security and policing 0 100 0 0 0 0 0 Buses 0 0 0 0 0 0 0 Clinics 0 0 0 0 0 0 0 Museums and Art Galleries 0 0 0 0 0 0 0 Cemeteries 0 0 0 0 0 0 0 Social rental housing 0 0 0 0 1,700 1,600 2,000 Other 47 816 642 639 0 0 0 Heritage assets – Total 0 0 0 0 0 0 0 Buildings 0 0 0 0 0 0 0 Other 0 0 0 0 0 0 0 Investments properties – Total 0 0 0 0 0 0 0

220

Capital Expenditure – Upgrade/Renewal Programme* R`000 2015/16 2016/17 Future Description Original Revised 2017/ 2018/ 2019/ Actual Actual Budget Budget 2018 2019 2020 Housing development 0 0 0 0 0 0 0 Other 0 0 0 0 0 0 0 Other assets 8,440 4,555 11,812 11,738 14,290 5,745 6,245 General vehicles 0 0 8,660 8,660 1,305 1,335 1,365 Specialised vehicles 0 0 0 0 0 0 0 Plant and equipment 0 0 0 0 475 1,045 1,500 Computers – hardware/equipment 0 0 0 0 1,200 1,165 1,180 Furniture and other office equipment 0 0 0 0 0 0 0 Abattoirs 0 0 0 0 0 0 0 Markets 0 0 0 0 0 0 0 Civic land and buildings 8,230 3,600 690 630 10,910 2,200 2,200 Other buildings 211 955 2,462 2,448 0 0 0 Other land 0 0 0 0 400 0 0 Surplus Assets – (Investment or inventory) 0 0 0 0 0 0 0 Other Assets: Other 0 0 0 0 0 0 0 Agriculture assets 0 0 0 0 0 0 0 List sub-class 0 0 0 0 0 0 0 Biological assets 0 0 0 0 0 0 0 List sub-class 0 0 0 0 0 0 0 Intangibles 0 0 0 0 0 0 0 Computers – software and programming 0 0 0 0 0 0 0 Other (list sub-class) 0 0 0 0 0 0 0 Total Capital Expenditure on renewed assets 119,807 178,235 181,602 181,089 369,466 275,261 197,130

Specialised vehicles 0 0 0 0 0 0 0 Refuse 0 0 0 0 0 0 0 Fire 0 0 0 0 0 0 0 Conservancy 0 0 0 0 0 0 0 Ambulances 0 0 0 0 0 0 0 Table 200: Capital Expenditure – Upgrade/Renewal Programme

221

APPENDIX M: CAPITAL PROGRAMME BY PROJECT 2016/17

Capital Programme by Main Projects 2016/17 % % Original Revised Actual Variance Variance Capital Project Budget Budget Expenditure Between Between (OB) (RB) (AE) (AE & RB) (AE & OB) Water 11 ml Newton reservoir 7,698,599 23,320,222 23,296,988 0.1% -202.6% 8 ml Courtrai reservoir x 2 20,000,000 34,915,895 34,915,895 0.0% -74.5% Welvanpas WTW & out buildings 33,440,817 16,961,691 16,961,691 0.0% 49.2% Sanitation / Sewerage Upgrade Bulk Sewer : Southern Paarl 33,057,979 42,139,995 42,139,995 0.0% -27.4% Saron WWTW: Rehabilitation and Upgrading 17,899,333 28,408,641 28,408,640 0.0% -58.7% Wellington WWTW: Rehabilitation & Extension 108,248,267 86,404,815 86,404,814 0.0% 20.1% Electricity Kliprug Substation 132/11kv New 46,182,615 41,351,326 41,351,325 0.0% 10.4% Upgrade Suid End Substation 66/11kv (Mas) 15,000,000 6,660,366 6,660,365 0.0% 55.6% Network Upgrading: Hv & Mv 1,578,360 8,497,033 8,497,033 0.0% -438.3% Road Transport Proclaimed and main roads upgrades 10,488,068 11,402,686 11,402,686 0.0% -8.7% Upgrading of Brb North 15,789,474 20,335,556 20,335,556 0.0% -28.7% Upgrading of gravel to paved roads (Saron) 7,000,000 8,859,200 8,859,200 0.0% -26.5% Housing Water Meters and Connections Amstelhof 0 218,771 218,771 0.0% 100.0% Upgrading Own Rental Stock 1,600,000 1,349,772 1,349,771 0.0% 15.6% C/O buildings: erection of new offices 0 384,091 384,091 0.0% 100.0% Refuse Removal Buildings: Cost 0 4,320,035 4,320,033 0.0% 100.0% Rehabilitation of the Wellington Landfill 2,500,000 674,895 674,895 0.0% 73.0% PPE CO: Machin & Equip - Acquisitions 350,000 358,665 358,665 0.0% -2.0% Economic Development Informal Trading Kiosks in Paarl CBD 537,500 425,760 421,662 0.9% 21.5% Collaborator Building Plan Application 0 674,000 666,076 1.1% 100.0% PPE CO: Computer Equip - Acquisitions 0 137,985 137,985 0.0% 100.0% Sports, Art and Culture Upgrading of Mbekweni B and C Sports Fields 0 5,790,428 5,790,428 0.0% 100.0% Water Fun Park (New Orleans) 3,500,000 5,210,179 5,210,177 0.0% -48.8% Cloak / Ablution Facilities Netball Fields 1,140,696 2,331,351 2,308,349 0.9% -102.3% Executive and Council Labour intensive capital project allocation 4,290,000 2,231,740 2,231,740 0.0% 47.9% PPE CO: Build - Acquisitions 0 1,045,357 1,045,356 0.0% 100.0% Intangible Assets: Acquisitions 0 588,673 588,673 0.0% 100.0% Safety and Security C/O : Vehicle Impound 0 5,044,830 5,044,830 0.0% 100.0% Traffic HQ 2,605,000 2,168,074 2,155,565 0.5% 17.2% Generator MVR Dal Josaphat 0 237,903 237,903 0.0% 100.0%

222

Capital Programme by Main Projects 2016/17 % % Original Revised Actual Variance Variance Capital Project Budget Budget Expenditure Between Between (OB) (RB) (AE) (AE & RB) (AE & OB) Corporate Services ICT Equipment: Time & Attendance System 0 620,989 620,989 0.0% 100.0% ICT Equipment: Computer Related (New & Rep) 2,750,000 3,901,212 3,901,212 0.0% -41.8% Office Building: Upgrading Civic Centre 3,200,000 5,345,941 5,345,941 0.0% -67.0% Budget and Treasury Office C/O Buildings: New stores 0 223,549 223,549 0.0% 100.0% PPE CO: Build - Acquisitions 0 135,897 135,897 0.0% 100.0% Operational Infrastructure Allocations 0 79,467 79,026 0.5% 100.0% Community and Social Services Community Hall and Facilities: Saron 3,767,750 4,469,002 4,062,332 9.1% -7.8% Community Hall and Facilities: Simondium 3,767,750 1,783,328 1,783,327 0.0% 52.6% PPE CO: Build - Acquisitions 0 321,896 321,896 0.0% 100.0%

Table 201: Capital Programme by Main Project 2016/17

223

APPENDIX N: CAPITAL PROGRAMME BY PROJECT BY WARD 2016/17

Capital Programme by Project by Ward 2016/17* Works Wards affected completed Capital Programme (Yes/No) Water 11 ml Newton reservoir All Yes 8 ml Courtrai reservoir x 2 All Yes Welvanpas WTW & out buildings All Yes Sanitation/Sewerage Upgrade Bulk Sewer : Southern Paarl All Yes Saron WWTW: Rehabilitation and Upgrading All Yes Wellington WWTW: Rehabilitation & Extension All Yes Electricity Kliprug Substation 132/11kv New All Yes Upgrade Suid End Substation 66/11kv (Mas) All Yes Network Upgrading: Hv & Mv All Yes Housing Water Meters and Connections Amstelhof All Yes Upgrading Own Rental Stock All Yes C/O buildings: erection of new offices All Yes Refuse Removal Buildings: Cost All Yes Rehabilitation of the Wellington Landfill All Yes PPE CO: Machin & Equip - Acquisitions All Yes Budget and Treasury Office C/O Buildings: New stores All Yes PPE CO: Build - Acquisitions All Yes Operational Infrastructure Allocations All Yes Economic Development Informal Trading Kiosks in Paarl CBD All Yes Collaborator Building Plan Application All Yes PPE CO: Computer Equip - Acquisitions All Yes Sports, Art And Culture Upgrading of Mbekweni B and C Sports Fields All Yes Water Fun Park (New Orleans) All Yes Cloak / Ablution Facilities Netball Fields All Yes Road And Transport Proclaimed and main roads upgrades All Yes Upgrading of Brb North All Yes Upgrading of gravel to paved roads (Saron) All Yes Executive and Council Labour intensive capital project allocation All Yes PPE CO: Build - Acquisitions All Yes Intangible Assets: Acquisitions All Yes Corporate Services ICT Equipment: Time & Attendance System: Office Building All Yes

224

Capital Programme by Project by Ward 2016/17* Works Wards affected completed Capital Programme (Yes/No) ICT Equipment: Computer Related (New & Replacements) All Yes Office Building: Upgrading Civic Centre All Yes Community and Social Services Community Hall and Facilities: Saron All Yes Community Hall and Facilities: Simondium All Yes PPE CO: Build - Acquisitions All Yes Safety and Security C/O : Vehicle Impound All Yes Traffic HQ All Yes Generator MVR Dal Josaphat All Yes Table 202: Capital Programme by Main Project by Ward 2016/17

APPENDIX O: SERVICE CONNECTION BACKLOGS AT SCHOOLS AND CLINICS

Service Backlogs: Schools and Clinics Establishments lacking basic services Water Sanitation Electricity Waste Schools None None None None None Clinics None None None None None Table 203: Service Backlogs – Schools and Clinics

225

APPENDIX P: SERVICE BACKLOGS EXPERIENCED BY THE COMMUNITY WHERE ANOTHER SPHERE OF GOVERNMENT IS RESPONSIBLE FOR SERVICE PROVISION

Service backlogs experienced by the community where another sphere of government is the service provider (whether or not the municipality acts on agency basis) Service and locations Scale of backlogs Impact of backlogs Clinics The facility is too small and cannot serve all the needs of the people in Facility inadequate to serve all the General health services – this rural farming area. No doctor. people who require services and not Windmeul Only referrals from general health conducive to dispensary services. nurse. The facility is too small and cannot Facility inadequate to serve all the Mbekweni CDC Centre serve all the needs of the people who people who require services and not require general health services. conducive to dispensary services. No shelter for the patients during winter months or whilst waiting for Facility inadequate to serve all the Soetendal Clinic – transport to collect them to be people who require services and not Wellington transported to the nearest hospital. conducive to dispensary services. Hermon patients require transport to Soetendal Clinic on a regular basis. Van Wyksvlei CDC A fully-fledged hospital is needed in Facility inadequate to serve all the (Wards 5, 7, 10 and 11) the area as the clinic is insufficient. people who require services. Request for the Clinic at Nederburg to Nederburg Clinic – Ward Facility inadequate to serve all the be enlarged and more staff should be 25 people who require services. appointed. Housing Increase in the erection of illegal structures. Overcrowding in Municipal Informal Settlements rental stock. Scarcity of well-located Drakenstein Estimated informal households (4,428) land. Insufficient funding. Increase of Municipality. evictions. Cause of serious social problems. 19,500 active applications plus 108 Need to re-consider strategy by officials and workers that are not servicing more site than building Housing Demand captured on the provincial database. houses to ensure that the demand for 18,981 cancellations. services are reduced, Grant funding has been limited to Department of Energy grant funding amounts sufficient to electrify ±450 required for electrification of an service connections annually. In Electrification estimated 20,684 informal and addition no funding has been available backyard dwellers. to address back yard dwellers who require electrical services as well. Licensing and Testing Centre None None None Reservoirs None None None Schools (Primary and High) A pedestrian crossing is required for the Windmeul Primary safety of scholars at Windmeul Primary Safety of learners is at risk. School (Ward 3) School. Application must be made for

226

Service backlogs experienced by the community where another sphere of government is the service provider (whether or not the municipality acts on agency basis) Service and locations Scale of backlogs Impact of backlogs the reduction of the speed limit so that a pedestrian crossing can be built. Street lights and sidewalks from Sonop Primary Ashanti Farm to Sonop School Safety of learners is at risk. (Ward 28) (Keerweder) on Sonstraal Road. Play park at Sonop School. New Primary School Community requests new primary Access to education. (Ward 5) school for Ward 5. New Bus Shelters – Community requests new bus shelters. Safety of learners is at risk. (Wards 1, 3, 5 and 28) Sports fields The development of the urban park in collaboration with VPUU will grant As part of the VPUU project, the opportunities that are more sporting Sports facility in Community Services Department is friendly to the community. Only one Fairyland busy to implement the development of soccer field is currently available for the an urban park. following suburbs: Groenheuwel, Fairyland, Smarty Town and the Drommedaris Development. Table 204: Service backlogs experienced by the community where another sphere of government is the service provider

227

APPENDIX Q: DECLARATION OF LOANS AND GRANTS MADE BY THE MUNICIPALITY

Declaration of loans and grants made by the municipality 2016/17 All organisations or persons in receipt of Value loans*/grants* Reason for application Conditions attached to funding 2016/17 provided by the (Rand) municipality Signing of an agreement – AGS Kerk Newton Food, transport and clothing to submission of financial report by 3,000 Weslyn Afdeling homeless children and adults. end of financial year Purchase of instruments, chairs, and a Signing of an agreement – Beulah Pentecostal computer for administration and to submission of financial report by 3,000 Church start up a soup kitchen to feed the end of financial year needy. Signing of an agreement – Birth of Christ Funds for transport and music to submission of financial report by 3,000 Ministries community. end of financial year Signing of an agreement – Bright and Beautiful Money will be use to put up a submission of financial report by 3,000 Day-care precautionary wall. end of financial year Signing of an agreement – Free to Grow Purchasing of food and educational submission of financial report by 3,000 Ministries toys for aftercare. end of financial year Sponsor youth for camps and buy Signing of an agreement – Harvester Churches stationary for office. Rent for submission of financial report by 3,000 in Valley of Boland workshops and trainings. end of financial year Signing of an agreement – Help and Health Purchasing of kitchen supplies; fridge, submission of financial report by 3,000 Feeding Project stove etc. end of financial year Signing of an agreement – Ikamva Lethu Contribution to long term solutions for submission of financial report by 3,000 Development Centre social cohesion. end of financial year Signing of an agreement – Ikamvalethu After Funds for stationary and office submission of financial report by 3,000 School Care equipment for proper administration. end of financial year Signing of an agreement – Ilitha Home Base To buy educational toys, outdoor toys submission of financial report by 3,000 Care and mattresses. end of financial year Immanuel Signing of an agreement – Hervormde Pinkster Transport and music. submission of financial report by 3,000 van RSA end of financial year Signing of an agreement – Jembekkies Day Care Uplift the school standards. submission of financial report by 3,000 end of financial year To provide a safe environment where Signing of an agreement – Life Fantastic learning could take place and to submission of financial report by 3,000 Educare nurture the future of our children. end of financial year Purchasing of fence to make yard more Signing of an agreement – Lithalethu Educare secure. To buy tables, chairs, submission of financial report by 3,000 Centre matrasses and stationary. end of financial year Signing of an agreement – Running events such as drama and Massive Production submission of financial report by 3,000 music. end of financial year

228

Signing of an agreement – Bonokuhle Funds for stationary and office submission of financial report by 3,000 Afterschool Care equipment for proper administration. end of financial year Die Pinkster Signing of an agreement – Oppersaal Purchasing of music instruments. submission of financial report by 3,000 Wellington end of financial year Signing of an agreement – Forgiveness and Purchasing of food parcels to feed the submission of financial report by 3,000 Healing Ministries homeless and farm people. end of financial year Gouda Learning Signing of an agreement – Assistance and Fencing on property. submission of financial report by 3,000 Aftercare end of financial year Signing of an agreement – Harvest Time Feeding scheme and religious training. submission of financial report by 3,000 Ministries end of financial year Funding for our Christmas dinner Signing of an agreement – Hope Evangelistic programme in networking with Child submission of financial report by 3,000 Outreach Ministries Welfare Wellington. end of financial year Signing of an agreement – Extension of crèche and purchasing of Kiddies Garden submission of financial report by 3,000 equipment end of financial year

229

Declaration of loans and grants made by the municipality 2016/17 All organisations or persons in receipt of Value loans*/grants* Reason for application Conditions attached to funding 2016/17 provided by the (Rand) municipality Signing of an agreement – Langabuya Educare Purchase of a safety security fence for submission of financial report by 3,000 Centre the whole surroundings. end of financial year Signing of an agreement – Lixanduva Lwethu Working resources, transport, catering submission of financial report by 3,000 Academy for trainer and trainees. end of financial year Masakhane Signing of an agreement – Grassroots Educare To buy mattresses for the little ones. submission of financial report by 3,000 Centre end of financial year Signing of an agreement – AGS Kerk Newton Food, transport and clothing to submission of financial report by 3,000 Weslyn Afdeling homeless children and adults. end of financial year Purchase of instruments, chairs, Signing of an agreement – Beulah Pentecostal computer for administration and to submission of financial report by 3,000 Church start up a soup kitchen to feed the end of financial year needy. Signing of an agreement – Birth of Christ Funds for transport and music to submission of financial report by 3,000 Ministries community. end of financial year Signing of an agreement – Bright and Beautiful Money will be use to put up a submission of financial report by 3,000 Day-care precautionary wall. end of financial year Signing of an agreement – Free To Grow Purchasing of food and educational submission of financial report by 3,000 Ministries toys for aftercare. end of financial year Sponsor youth for camps and buy Signing of an agreement – Harvester Churches stationary for office. Rent for submission of financial report by 3,000 in Valley of Boland workshops and trainings. end of financial year Signing of an agreement – Help and Health Purchasing of kitchen supplies; fridge, submission of financial report by 3,000 Feeding Project stove etc. end of financial year Signing of an agreement – Ikamva Lethu Contribution to long term solutions for submission of financial report by 3,000 Development Centre social cohesion. end of financial year Signing of an agreement – Ikamvalethu After Funds for stationary and office submission of financial report by 3,000 School Care equipment for proper administration. end of financial year Signing of an agreement – Ilitha Home Base To buy educational toys, outdoor toys submission of financial report by 3,000 Care and mattresses. end of financial year Immanuel Signing of an agreement – Hervormde Pinkster Transport and music. submission of financial report by 3,000 aan RSA end of financial year Signing of an agreement – Jembekkies Day Care Uplift the school standards submission of financial report by 3,000 end of financial year To provide a safe environment where Signing of an agreement – Life Fantastic learning could take place and to submission of financial report by 3,000 Educare nurture the future of our children. end of financial year

230

Declaration of loans and grants made by the municipality 2016/17 All organisations or persons in receipt of Value loans*/grants* Reason for application Conditions attached to funding 2016/17 provided by the (Rand) municipality Purchasing of fence to make yard more Signing of an agreement – Lithalethu Educare secure. To buy tables, chairs, submission of financial report by 3,000 Centre matrasses and stationary. end of financial year Signing of an agreement – Running events such as drama and Massive Production submission of financial report by 3,000 music. end of financial year Signing of an agreement – Mbekweni Youth Training in basic computer literacy for submission of financial report by 3,000 Centre NPC unemployed youth. end of financial year Signing of an agreement – Mickey Mouse Painting of outside building and submission of financial report by 3,000 Playground Paarl purchasing of deep freezer. end of financial year Purchasing of play kitchen set, mini indoor playground, jumbo sand and Signing of an agreement – Monwabisi Educare water play set, wooden geometric submission of financial report by 3,000 Centre solids, lockable mobile library, first aid end of financial year kit. *No loans were granted to any organisation Table 205: Declaration of loans and grants made by the Municipality 2016/17

231

APPENDIX R: DECLARATION OF RETURNS NOT MADE IN DUE TIME UNDER MFMA S71

MFMA Section 71 returns not made during 2016/17 according to reporting requirements Return Reason return has not been properly made on due date All returns were submitted timeously Table 206: MFMA S71 returns not made during 2016/17 according to reporting requirements APPENDIX S: PRESIDENTIAL OUTCOME FOR LOCAL GOVERNMENT

Presidential outcome for Local Government Number or Outcome / Output Progress to date percentage achieved

Output: Improving access to basic services Formal households having access to all 100% basic services. Informal households having access to Provision of Basic Services water, sanitation and refuse removal 100% services at the minimum level. Informal households having access to 72% electricity services.

Output: Implementation of the Community Work Programme A Memorandum of Understanding has In various projects about been concluded wherein an EPWP EPWP: Environmental and 1,600 persons were given job champion has been identified. An EPWP Infrastructure Improvement opportunities via the EPWP policy and SOP have been developed and Project (Solid Waste program. This resulted in an approved for approval by Council to guide Management Project) increase in the EPWP grant appointments and ensure maximum job allocation for 2017/18. opportunities. The Community Works Programme functions in the Municipality, but is managed 4,232 people were employed with the The target allocated to the on behalf of national help of the Municipality. Municipality was achieved. government by an external service provider.

Output: Deepen democracy through a refined Ward Committee Model Regular ward meetings are facilitated by 108 Committee meetings and All Ward Committees are the Ward Councillor. Consequently, regular 143 quarterly public meetings functional. reports to this effect are submitted to the were held during the financial Speaker and Council. year.

Output: Administrative and financial capability Debt Collection and Indigent These policies were approved by Council to Support Policy as well as the ensure that consumers who are struggling 100.2% debt collection rate for Writing Off of Irrecoverable financially can be accommodated without 2016/17 Debt Policy were reviewed. severe negative effects to the Municipality. Table 207: Presidential outcome for Local Government

232

VOLUME I: REPORT OF THE AUDITOR-GENERAL 2016/2017

233

VOLUME II: AUDIT OUTCOME IMPROVEMENT PLAN

AUDITOR-GENERAL REPORT 2016/17 Report on the audit of the financial statements Unqualified opinion Report on the audit of the annual performance report No material findings Report on the audit of compliance with legislation No material findings Issues Raised Corrective Measures Required Emphasis of Matters Restatement of Corresponding Figures

As disclosed in note 40 to the financial statements, the None. Simply an corresponding figures for 30 June 2016 have been restated as a information statement result of errors in the financial statements of the municipality at, by the Auditor-General. and for the year ended, 30 June 2017. Material Impairments

As disclosed in notes 19.1, 19.2 and 20.1 to the financial None. Simply an statements, the municipality provided for the impairment of information statement receivables amounting to R 250 million (2015/16: R 217 million), by the Auditor-General. based on the recoverability of gross receivables. Significant Uncertainties As disclosed in note 50 to the financial statements, the municipality is the defendant in a case where it is being sued for None. Simply an R 449 million. The ultimate outcome of the matter cannot information statement presently be determined and no provision for any liability that by the Auditor-General. may result in this regard has been made in the financial statements.

241

VOLUME III: REPORT OF THE AUDIT COMMITTEE 2016/2017

The Audit Committee presents its report for the financial year ended 30 June 2017.

AUDIT COMMITTEE MEMBERS AND ATTENDANCE As requested by its Charter, the Audit Committee listed below, is required to meet at least 4 times per annum, although additional meetings may be scheduled as the need arises. Six meetings were held during the 2016/17 financial year.

MEETINGS ATTENDED Mr. R. Kingwill 6 Dr. W. Sewell 6 Mr. T. Arendse 6 Ms. K. Montgomery 6

AUDIT COMMITTEE RESPONSIBILITY The Audit Committee reports that it has as far as possible, complied with the responsibilities arising from its terms of reference, including relevant legislative requirements.

REVIEW AND EVALUATION OF THE ANNUAL FINANCIAL STATEMENTS The Audit Committee is pleased that the Auditor-General of South Africa issued an unqualified audit opinion with no other matters on the financial statements of the municipality for the year ended 30 June 2017. These financial statements are prepared in accordance with the South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP), the requirements of the Municipal Finance Management Act of South Africa, 2003 (Act No.56 of 2003)(MFMA) and the Division of Revenue Act of South Africa, 2016 (Act No 3 of 2016) (DoRA).

The Audit Committee is of the opinion that the audited financial statements should be accepted and read together with the Report of the Auditor-General of South Africa.

PERFORMANCE MANAGEMENT The Audit Committee reviewed the quarterly performance results presented by Management as well as the quarterly reports of Internal Audit on the verification of the reported performance results. The Audit Committee noted the ongoing improvements made by Management to ensure a credible performance management system and reliable performance results.

This is reflected in the positive outcome of the Auditor-General’s review of the Municipality’s predetermined objectives. Management is again encouraged to ensure that the business processes underlying the preparation and presentation of performance information is further embedded and that management oversight of reported results is strengthened. This in particular relates to the completeness and accuracy of the portfolios of evidence which supports the outcomes reported.

INTERNAL CONTROL AND RISK MANAGEMENT The Audit Committee received quarterly progress reports from Internal Audit on the execution of the revised operational internal audit plan and the results of the audits conducted. Where instances of

242

control weakness were reported, Management committed to implementing the necessary action plans to address the reported control weaknesses. These will continue to be reviewed at our quarterly meetings.

The Audit Committee reviewed the risk profile of the Municipality when the Internal Audit Plan priorities were determined. A member of the Audit Committee remains co-opted to serve on the Fraud and Risk Management Committee (FARMCO) of the Municipality. The Audit Committee is encouraged that progress of embedding a risk management culture in the processes of the Municipality is progressing well and that the capacity building within the department has been good.

The Audit Committee also noted the Auditor-General’s report that no significant internal control deficiencies were identified.

CONCLUSION The Audit Committee congratulates the Management team on achieving a clean audit opinion and wishes the Municipal Council, Executive Mayor and Mayco, Municipal Management and staff success in their quest to make Drakenstein a “CITY OF EXCELLENCE”.

Ronnie Kingwill

Audit Committee Chairperson Date: 12 December 2017

243

VOLUME IV: ANNUAL AUDITED FINANCIAL STATEMENTS 2016/17

244

VOLUME V: ANNUAL PERFORMANCE REPORT 2016/2017

363