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Provincial Gazette Extraordinary Buitengewone Provinsiale Koerant

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Provincial Gazette Extraordinary Buitengewone Provinsiale Koerant PROVINCE OF WESTERN CAPE PROVINSIE WES-KAAP Provincial Gazette Buitengewone Extraordinary Provinsiale Koerant 6930 6930 Friday, 23 December 2011 Vrydag, 23 Desember 2011 Registered at the Post Offıce as a Newspaper CONTENTS (*Reprints are obtainable at Room M21, Provincial Legislature Building, 7 Wale Street, Cape Town 8001.) No. Page Provincial Notice 333 Consolidated Annual Municipal Performance Report: 2009/10 .............................................................................. 2 2 Province of the Western Cape: Provincial Gazette Extraordinary 6930 23 December 2011 PROVINCIAL NOTICE PROVINSIALE KENNISGEWING The following Provincial Notice is published for general informa- Die volgende Provinsiale Kennisgewing word vir algemene inligting tion. gepubliseer. ADV. B. GERBER, ADV. B. GERBER, DIRECTOR-GENERAL DIREKTEUR-GENERAAL Provincial Building, Provinsiale-gebou, Wale Street, Waalstraat, Cape Town. Kaapstad. P.N. 333/2011 23 December 2011 Provincial Notice CONSOLIDATED ANNUAL MUNICIPAL PERFORMANCE REPORT 2009/10 23 Desember 2011 Provinsie Wes-Kaap: Buitengewone Provinsiale Koerant 6930 3 CONTENTS FOREWORD BY MEC vi LIST OF TABLES viii EXECUTIVE SUMMARY x LEGISLATIVE OVERVIEW xiii RESEARCH METHODOLOGY xvi CHAPTER 1: GEOGRAPHIC, DEMOGRAPHIC AND SOCIO- ECONOMIC PROFILES OF MUNICIPALITIES 1.1 Introduction 1 1.2 Geographic information 1 1.3 Demographic information 3 1.4 Socio-economic information 4 1.5 Political composition 5 1.6 Classification of municipal capacity by the National Treasury 6 1.7 Assessment of demographic and socio-economic data 7 CHAPTER 2: INTEGRATED DEVELOPMENT PLANNING 2.1 Introduction 8 2.2 IDP assessment 8 CHAPTER 3: HUMAN RESOURCE AND ORGANISATIONAL MANAGEMENT 3.1 Introduction 11 3.2 Number of approved, filled and vacant posts per municipality 12 3.3 Transformation statistics per municipality 13 3.4 Municipal Manager Positions as at May 2010 14 3.5 Development and Implementation of specific HR policies and systems per 16 municipality 3.6 Municipal capacity and skills development initiatives 17 3.7 Analysis of institutional development, transformation and HR systems 21 3.8 Performance Management 21 3.8.1 Service delivery budget implementation plans (SDBIPs) 21 ii 4 Province of the Western Cape: Provincial Gazette Extraordinary 6930 23 December 2011 3.8.2 Submission of annual reports 23 3.8.3 Adoption of oversight reports 24 3.8.4 Councils’ Resolutions on Annual Reports 25 CHAPTER 4: BASIC SERVICES DELIVERY 4.1 Introduction 26 4.2 Provision of basic services 26 4.2.1 Serviced households – level of services 26 4.2.2 Basic service delivery backlogs 32 4.2.3 Analysis of basic service delivery 37 4.3 Percentage (%) of capital budget spent on each service 37 4.4 Percentage (%) of capital budget spent 39 4.5 Analysis of percentage (%) of capital budget spent on each service and 42 percentage (%) of total capital budget spent 4.6 Free basic services 43 4.6.1 Free basic services provided per type of service per household 43 4.6.2 Analysis of the provision of free basic services 44 4.7 Municipal Infrastructure Grant (MIG) 44 4.7.1 MIG expenditure 44 4.7.2 Analysis of MIG expenditure 48 4.8 Housing 48 4.8.1 Housing grant expenditure 48 4.8.2 Analysis of performance on housing grant allocations 54 CHAPTER 5: MUNICIPAL FINANCIAL VIABILITY AND MANAGEMENT 5.1 Introduction 55 5.2 Budget and budget related matters 55 5.2.1 Approval of budgets 55 5.2.2 Performance against budgets 56 5.2.3 Performance against total grants, donations and contributions received 62 iii 23 Desember 2011 Provinsie Wes-Kaap: Buitengewone Provinsiale Koerant 6930 5 5.2.4 Analysis of budget performance and performance against grants received 65 5.3 Submission of financial statements and the Report of the Auditor-General 66 5.3.1 Submission of financial statements 66 5.3.1.1 Submission dates and types of Auditor-General reports received 66 5.3.2 Key findings in the reports of the Auditor-General 73 5.3.3 Analysis of the reports of the Auditor-General 77 5.4 Outstanding debt and debt management 78 5.4.1 Outstanding consumer debt per service 78 5.4.2 Comparison with previous year: Total consumer debt outstanding per 82 municipality 5.4.3 Consumer debtor age analysis 83 5.4.4 Analysis of consumer debtors 87 5.5 Performance against additional viability indicators 87 5.5.1 Staff cost as percentage (%) of total operating expenditure (excludes 87 Councillor allowances) 5.5.2 Level of reliance on grants 88 5.5.3 Liquidity ratio 89 5.5.4 Analysis of viability indicators 90 CHAPTER 6: GOOD GOVERNANCE AND PUBLIC PARTICIPATION 6.1 Introduction 91 6.2 Good governance indicators 92 6.3 Anti-corruption 93 6.3.1 Analysis of good governance and anti-corruption indicators 94 6.4 Ward committees 94 6.5 Community Development Workers 96 6.6 Audit findings on governance by the office of the Auditor-General 98 6.7 Analysis, challenges and trends 99 CHAPTER 7: LOCAL ECONOMIC DEVELOPMENT 7.1 Introduction 101 iv 6 Province of the Western Cape: Provincial Gazette Extraordinary 6930 23 December 2011 7.2 LED strategies and implementation 102 7.3 Crucial economic data relevant to the measurement of municipal 105 performance 7.4 Analysis of LED 106 CHAPTER 8: CROSS CUTTING MATTERS 8.1 Introduction 107 8.2 Cross-cutting interventions 107 8.3 Disaster Management 108 8.4 Inter-governmental Relations 110 CHAPTER 9: MUNICIPAL CHALLENGES 9.1 Introduction 111 9.2 Key challenges as identified by municipalities 111 CHAPTER 10: PROVINCIAL SUPPORT AND CAPACITY-BUILDING INITIATIVES 10.1 Introduction 113 10.2 Support and capacity-building initiatives in aid of municipalities 113 10.3 Conclusion 116 LIST OF ABBREVIATIONS 117 BIBLIOGRAPHY 118 v 23 Desember 2011 Provinsie Wes-Kaap: Buitengewone Provinsiale Koerant 6930 7 FOREWORD BY MEC Municipalities are mandated in terms of the South African Constitution to ensure the provision of services to communities in a sustainable manner while at the same time promoting a safe and healthy environment for the citizens. In order for municipalities to achieve this, national and provincial government must support and capacitate municipalities to manage their own affairs. Therefore, the Western Cape Provincial Government is working towards its vision of developmental and well governed municipalities with integrated, sustainable and empowered communities by strengthening capacity building interventions and providing provincial support and oversight. In terms of Section 47 of the Local Government: Municipal Systems Act No. 32 of 2000, as Minister of Local Government in the Province, I must annually compile and submit to the Provincial Legislature, National Minister and National Council of Provinces a consolidated annual municipal performance report. This is the fifth report compiled in terms of section 47 of the Municipal Systems Act, which is based on the performance of municipalities within the Western Cape, including their key successes and challenges that they have experienced during the year under review. The process followed in compiling this report involved a very thorough consultative process with all municipalities. The difference in format of the Municipal Annual Reports compiled and submitted in terms of Section 46 of the Local Government: Municipal Systems Act No. 32 of 2000 still remains a challenge. This has resulted in sourcing additional information from municipalities. Of the 30 municipalities in the Western Cape, only 2 municipalities have not tabled their annual and oversight reports to their councils. Despite the existence of these challenges, the 2009/10 Section 47 report followed an effective and accurate data collection process. The report attempts to incorporate an extensive trend-analysis through the utilisation of baselines established in previous reports. It is encouraging that in most Western Cape municipalities, the critical positions especially those of the section 57 managers have been filled, although in some municipalities attracting and retaining skilled staff still continues to be a challenge. Good governance indicators also point to an improvement with regards to compliance with the adoption of administrative delegations and anti-corruption plans. Through the key provincial interventions in support of municipalities, spending in capital budgets has been on the increase. However, it is vi 8 Province of the Western Cape: Provincial Gazette Extraordinary 6930 23 December 2011 decisively important that these funds are not only spent, but that they are spent appropriately. The trend of sound overall audit performances by municipalities in the Province continued during the financial year 2009/10. As this report illustrates that most municipalities have complied with their legislative obligations, their efforts should be applauded especially in the light of the challenges they face. The advances made by municipalities should be used as catalyst for improved service delivery to the people. Anton Bredell, Minister for Local Government, Environmental Affairs and Development Planning vii 23 Desember 2011 Provinsie Wes-Kaap: Buitengewone Provinsiale Koerant 6930 9 LIST OF TABLES Table nr Content Page nr Table 1: Annual reporting process of municipalities xiv Table 2: Geographic information per municipality 1 Table 3: Demographic information per municipality 3 Table 4: Socio-economic information per municipality 4 Table 5: Political composition of municipalities 5 Table 6: Classification of municipal capacity by National Treasury 6 Table 7: Outcomes of IDP credibility assessments 9 Table 8: Number of approved and vacant
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