Overview of the National Report

1
Overview of the National Report

• By Prof. Nico Steytler
• MDB Member

2
Presentation Overview

• Operating expenditure 2002/03-2007/08
• Assessment of staffing levels
• Management Experience and Qualifications
• Functions performed with some capacity
  2002/2003-2007/2008
• Number of departments performing functions
• Activities linked to functions-District and Local
  municipalities
• Poorly performing municipalities
• Concluding comments

3
Operating Expenditure 2002/03 2007/08 -
Districts

• At district municipal level in all provinces
  the average operating expenditure has increased
  from 2002/03 to 2006/07
• Following provinces demonstrate a higher than
  average district municipality operating budget
  for the 2007/08 when compared with the national
  average
• Eastern Cape
• North West
• KwaZulu-Natal, and
• Western Cape
• All or most district municipalities in the first
  three provinces listed above retained the section
  84(1)(b) and (d) functions.
• Above national district expenditure to Households
  was found for the following provinces
• Eastern Cape
• KwaZulu-Natal
• Western Cape
• Expenditure rates in the following provinces is
  far lower than the national average
• Free State
• Limpopo
• Western Cape

4
Operating Expenditure 2002/03 2007/08 -
Districts
5
Operating Expenditure 2002/03 2007/08
Districts by Water Authority
6
Operating Expenditure 2002/03 2007/08 Local
Municipalities

• At local municipality level all provinces
  demonstrate a steady average increase in
  operating expenditure with the Northern Cape
  showing the slowest increase over the period
  2002/03 2007/08
• The average operating budget varies considerably
  for Types 1 to 4 municipalities
• Type 1 to Type 4 18 times greater with a per
  household expenditure 6.6 times greater
• Type 2 to Type 4 10 times greater with the per
  household expenditure 5.1 times greater
• Type 3 to Type 4 8 times greater with a per
  household expenditure 1.7 times greater
• Average spend per household
• Type 1 R1476 per annum
• Type 2 R1881 per annum
• Type 3 R6012 per annum
• Type 4 R9756 per annum
• When compared with the 2006/07 results, both type
  1 and 2 saw a slight decrease in household
  expenditure in 2007/08

7
Operating Expenditure 2002/03 2007/08 Local
Municipalities per Households
8
Operating Expenditure 2002/03 2007/08 Local
Municipalities by Type
9
Assessment of Staffing Levels 2002/03 2007/08 -
Districts

• Average Staffing Levels District Municipalities
• Staffing levels in the Free State remain
  significantly lower than the national average
• Western Cape, Eastern Cape, Gauteng and KwaZulu
  Natal remain well above the national average
• However, the average staffing levels in the
  Western Cape, Northern Cape, Mpumalanga and
  Limpopo show a decline
• North West, Limpopo and Free State demonstrate
  the greatest improvement in staff to household
  ratio 2002 2007
• C2 district types have a slightly better staff to
  household ratio than C1
• National average vacancy rate at district level
  is 64 positions but wide variations between and
  within provinces
• There is a slight increase in the vacancy rate
  when compared with the 2006/07 results

10
Assessment of Staffing Levels 2002/03 2007/08
District per Household
11
Assessment of Staffing Levels 2002/03 2007/08 -
Locals

• Average Staffing Levels Local Municipalities
• The Eastern Cape demonstrates slight average
  decline in staffing levels when compared with the
  2006/07 results
• On average, Gauteng remains the one province with
  the most human resource capacity at local
  municipality level
• Average staffing levels by type
• Type 1 89 employees
• Type 2 211 employees
• Type 3 299 employees
• Type 4 1484 employees
• Staff to household ratio
• Type 1 1422 households
• Type 2 1250 households
• Type 3 178 households
• Type 4 158 households

12
Assessment of Staffing Levels 2002/03 2007/08
Local by Household
13
Management Experience and Qualification

• Municipal Manager - Qualification
• Approximately 69 of district and local municipal
  managers have at least a university degree .
• 25 also have a post graduate degree.
• 4 of managers nationally have a matric with no
  additional qualifications.
• Wide variations are found between provinces for
  the above results.
• In 2007/08, general improvement in the overall
  results for management experience and
  qualifications.

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Management Experience and Qualification

• Municipal Manager Sector Qualification
• Public Administration
• Nationally this is the most common qualification
  type that is, 25 of all district and local
  managers.
• Significant variations are found across
  provinces. For example, 38 of municipal
  managers in the KwaZulu-Natal Province and 32 in
  Free State have this type of qualification.
• Teaching
• Approximately 10 of municipal managers have this
  qualifications an improvement on the 2006
  results
• Again provincial results vary significantly
• 20 of MMs in the Limpopo and 16 in the North
  West have teaching qualifications Figures
  reduced from the 2006 assessment period

15
Management Experience and Qualification

• Municipal Manager Sector Qualification
• Legal Qualifications
• National average 14
• Status
• 11 of MMS are in acting positions but
  variations found between provinces
• North West 20, and
• Northern Cape 22
• 68 have two or less years experience in the
  municipal managers position.

16
Management Experience and Qualification
Municipal Manager Experience in Local Government
17
CFO - Management Experience and Qualification

• Finance Management
• Matric and/or matric and diploma 31 nationally
• 2 have a pre matric qualification
• University degree/s 62 nationally
• 73 have financial qualification slight
  increase on the 2006/07 assessment
• On average, Finance Managers tend to have more
  local government experience than the Municipal
  Managers

18
Corporate Services - Management Experience and
Qualification

• Corporate Services
• Matric and/or matric and diploma 33 nationally
• 3 have a pre matric qualification
• University degree/s and or diploma/s 51
  nationally
• Most common qualification Public Administration
• 15 are in acting positions an increase when
  compared with the 2006/07 results
• 28 of managers have 5 or less years local
  government experience an improvement on the
  2006/07 results

19
Technical Services - Management Experience and
Qualification

• Technical Services
• Matric and/or matric and diploma 56 nationally
• 1 have a pre matric qualification
• University degree and diploma 41 nationally
• Most common qualification Engineering or
  related 57
• 16 are in acting positions
• 30 of managers have 5 or less years local
  government experience

20
IDP - Management Experience and Qualification

• IDP Managers
• Matric and/or matric and diploma 27 nationally
• University degree and diploma 70 nationally
  significant improvement on the 2006/07
• Most common qualification Public administration
• 8 are in acting positions
• 34 of managers have 5 or less years local
  government experience significant improvement
  on the 2006/07 results

21
Functions Performed with Some Capacity 2002/03
2007/08

• Number of functions performed with capacity
  2002/03 2007/08 District Municipalities
• 2002/03 78 of local municipalities performed
  less than 50 of their functions
• This figure reduced to 74 - 2007/08
• Number of functions performed with capacity
  2002/03 2007/08 Local Municipalities
• 2002/03 53 of local municipalities performed
  less than 50 of their functions
• This figure reduced to 52 in 2007/08

22
Functions Performed with Some Capacity 2002/03
2007/08

• Average number of functions performed by
  Municipal Type
• Local Municipalities
• Type 1 (Rural no towns) 11 functions
• Type 2 (Rural, small towns TBVC States) 18
  functions
• Type 3 (Small towns) - 20 functions
• Type 4 (Contain large urban areas) 24 functions
• District Municipalities
• C1 5 functions (Not WSA)
• C2 6 functions (WSA)

23
Functions Performed with Some Capacity 2002/03
2007/08

• Shifts in the number of functions performed
  2002/03 -2007/08
• 55 demonstrated positive increase
• 35 demonstrate a net decline
• 10 - no change 2002 2007
• Wide provincial variations are found
• Least change over the three assessment periods
  was found in the Type 4 municipalities
• Highest positive shifts Type 1 and 2
  municipalities

24
Functions Performed with Some Capacity 2002/03
2007/08

• Local municipality performance levels of priority
  1 functions varies based on the Ministers
  authorisations for the water and sanitation
  functions
• However more than 50 of all local municipalities
  have consistently performed the following
  priority 1functions.
• Water 65
• Sanitation 63
• Municipal roads 9 2
• Refuse Removal 8 9
• Electricity 72
• Cemeteries 8 9
• Fire Fighting 65
• Again wide variations are found between the
  provinces

Functions indicated performed with authority or
service level agreement or without authority
25
Local Municipalities - Functions Performed with
Some Capacity 2002/03 2007/08

• Broad Trends Functions Performed
• Generally there is a steady improvement in the
  number of functions performed with some capacity
  by municipalities.
• Greater improvements are found the type 1 and 2
  municipalities.
• Both positive and negative shifts in the number
  of functions performed are found.
• However, the significant negative shifts are less
  prominent than in the previous assessment
  periods.

26
Functions Performed with Some Capacity 2002/03
2007/08

• With the exception of the municipal health
  services function, the majority of the
  municipalities perform the basic needs functions.
  
• Priority 1 functions which tend to be performed
  by 65 or less local municipalities are the
  following
• Water function not assigned to some local
  municipalities
• Sanitation function not assigned to some local
  municipalities
• Fire fighting local function adjusted to
  district municipality in Limpopo
• Municipal health services not a local
  municipality function.
• District municipalities tend to demonstrate a
  weaker pattern when examining the functions
  performed with consistent capacity.

27
Number of Departments Performing Functions

• In 80 or more of cases, a single department is
  responsible for the function within the
  municipality.
• Of the priority one functions, only municipal
  planning does not fall into this category with 28
  of municipalities performing the function
  from two or more departments.
• This may be as a result of the separation of the
  IDP and the planning function or the separation
  of land use control and strategic land use
  planning and or both.
• There appears to be no difference between the
  types of municipalities and the number of
  departments rendering the service at the local
  and district municipality level.

28
Activities linked to Functions District and
Local Municipalities

• This is the first assessment period in which
  questions associated with the activities or tasks
  linked to the rendering of a function has been
  asked of municipalities.
• The results are interesting and could be used as
  a benchmark for future investigation and or
  definition development.
• General categories for assessing the activities
  linked to functions were identified such as
  common activities, fairly common activities
  and limited.
• Only the priority 1 functions were analysed

29
Activities linked to Functions District and
Local Municipalities - Results

• The results tend to confirm that the district
  performs a coordination role while the actual
  services are rendered by the local
  municipalities.
• This is evident in the language used to describe
  the activities linked to the district functions
  which include
• Coordination
• Facilitation
• Planning for the district as a whole
• Regulating, and
• Monitoring etc.
• The preparation and enforcement of bylaws in
  relation to the priority 1 functions, was only
  mentioned by a handful of municipalities.

30
Activities linked to Functions District and
Local Municipalities - Results

• Many local municipalities continue to perform the
  municipal health services function as defined in
  the Health Act
• A few municipalities are performing a clinic
  service under the function municipal heath
  services
• Municipal planning
• Municipalities tend to perform a number of
  provincial responsibilities such environmental
  management, LED
• It also appears to be a catch all function with
  some municipalities performing functions such as
  gender and youth
• Some municipalities view municipal planning as
  planning for the municipality performing
  functions such as internal audit and risk
  management and performance management

31
Broad Manager Qualification for Priority 1
functions

• In the 2007/08 MDB capacity assessment,
  questions were asked for the first time in
  relation to the qualifications, years of
  experience etc of the function managers. An
  example of the wording for the questions was as
  follows
• list the qualification for the responsible
  manager
• Each function was examined in relation to primary
  sector, related sector, other or matric or below
  

32
Broad Manager Qualification for Priority 1
functions

• Qualifications in the primary and or related
  sector
• Cemeteries 41 - Environmental health/
  Engineering including horticulture
• Electricity 77.4 - but only 38.4 have a
  qualification in electrical engineering
• Fire fighting 56.6 - but only 43 with fire
  related qualification
• Municipal health services 67.2 with 52 with
  environ health qualification
• Municipal Planning 46.3 but only 38 have a
  qualification in town and regional planning
• Municipal Roads 67. 7 with 54 with a
  qualification in civil eng.
• Potable water 72.5 with 68 with engineering
  qualification
• Refuse 52 - Engineering and or environmental
  health
• Sanitation 69.4 - Engineering

33
Budget and Staffing Levels for Priority 1
Functions

• Examines the national average and median
  expenditure per household and the staff to
  household ratios for the priority 1 functions
• Only those municipalities which indicated a cost
  centre budget were examined
• Both full time and as and when required
  staffing levels were examined
• When examining the budget and staffing levels for
  the priority 1 functions, the differences are
  stark.
• In all instances, the expenditure patterns for
  each function are far higher at the local
  municipality level than at the district.

34
Budget and Staffing Levels for Priority 1
Functions

• This includes the water and sanitation function
  where the average expenditure is R234 and R80
  respectively while at the local level, a result
  of R1338 and R447 are found.
• Most functions show a wide variation between the
  average household expenditure and the median,
  pointing to significant budget differences
  between the municipalities.
• The same argument made for the expenditure
  patterns for water and sanitation can be made for
  the staffing levels.
• While on average, the districts have a higher
  number of staff for the water function it is
  significantly lower when the staff to household
  ratio is determined.

35
Poorly Performing Local Municipalities

• Based on the MD B capacity assessment 12
  municipalities have performed less than 25 of
  their functions for all six assessment periods
  2002/03 2007/0 8
• These municipalities are located in the provinces
  of
• KwaZulu Natal 6 municipalities
• Limpopo 3 municipalities
• North West 3 municipalities

36
Poorly Performing Local Municipalities
37
Poorly Performing District Municipalities
38
Concluding Comments Poorly Performing
Municipalities

• It is important to stress the difference between
  the concepts poorly performing, lack of
  capacity and non-viable areas.
• These terms are easily conflated and are commonly
  used interchangeably.
• In 1999/2000 the demarcation process was aimed at
  creating a spatial framework within which
  municipalities could be established for
• the provision of democratic and accountable
  government for the local communities
• the provision of services to the communities in
  an equitable and sustainable manner
• the promotion of social and economic development
  
• the promotion of a safe and healthy environment
  effective local governance integrated
  development, and
• the collection of local taxes and service charges
  to provide services.

39
Concluding Comments Poorly Performing
Municipalities

• To have only demarcated boundaries to include
  areas with a viable economic base would have
  resulted in fewer municipalities with far greater
  and more challenging geographic extent and
  populations to be served by municipalities.
• As a consequence of the legacy of apartheid, it
  is not possible to demarcate municipal boundaries
  which will enhance a municipalitys economic
  viability when such vast areas lack any
  significant economic base.

40
Concluding Comments Poorly Performing
Municipalities

• A number of municipalities have consistently
  performed poorly for six assessment periods that
  is, they have performed less than 25 of their
  functions with some capacity each year.
• Moreover, 4 of the 6 commonly performed functions
  by such municipalities are not regarded as
  priority 1 responsibilities or are related to the
  provision of basic needs.
• Most of the municipalities fall within the type 1
  category and are therefore rural, with no
  definable town and mainly consist of traditional
  authority areas.
• Most of the poorly performing municipalities are
  located within KwaZulu-Natal. The Provincial
  Department of Local Government has actively
  provided support to these municipalities in the
  form of infrastructure, capacity building
  initiatives, professional services etc.
• Notwithstanding this support, the municipalities
  have failed to develop in any significant way.

41
Concluding Comments - Districts

• The 2007/08 assessment period is the first in
  which a clear distinction is emerging between the
  types of district municipalities i.e. C1 and C2
  municipalities.
• Certainly, the latter district type appears, on
  average, to have a larger budget, staffing levels
  and performs more functions with some capacity.
• High number of local municipalities still
  performing district functions

42
Concluding Comments - Districts

• When examining the activities linked to the
  functions rendered in relation to the priority
  one functions, it would appear that
• districts are largely performing a coordination,
  monitoring and facilitation role
• the local municipalities are the point of actual
  delivery.
• What it means to undertake functions such as
  coordination, facilitation and monitoring has
  never been clearly defined
• No national framework established to guide
  district municipalities with such
  responsibilities.

43
Concluding Comments - Districts

• A number of questions should be considered
• What capacity do Provincial Departments of Local
  Government have to support and develop district
  municipalities?
• What is the perception and approach to district
  municipalities at Provincial level?
• Has there been a systematic undermining of
  districts in certain Provinces?
• Is there a clear understanding nationally of the
  role districts should be playing and how to
  support this?
• Have the approaches adopted toward the
  development and management of district
  municipalities been consistent with policies such
  as the White Paper on Local Government?
• Have the adjustment of key district municipality
  functions to local municipalities undermined
  districts ability to perform their intended
  role?

44
Concluding Comments Management Capacity

• When examining the management capacity results,
  it would appear that there have been a number of
  improvements.
• In 2006/07, approximately 25 of municipal
  managers were found to be in acting positions.
  This figure has reduced to 11 in 2007/08.
• The number of years of local government
  experience has also improved for most manager
  categories.
• New incumbents in posts are now being appointed
  from within the municipality and/or are
  individuals with some local government
  experience, moving between municipalities for
  employment opportunities.
• Is possible a trend is that as the sector is
  transforming, some people are developing a career
  in local government.
• 46 managers have less than 2 years experience
  previously 68

45
Concluding Comments Activities Linked to
Functions

• The information provided in the 2007/08
  assessment in relation to the activities linked
  to functions is extremely useful.
• Not only does it allow for a quick assessment of
  the aspects of the functions being performed by
  the district and local municipalities but more
  importantly can be used to sharpen the existing
  Schedule 4 Part B and Schedule 5 Part B
  definitions as prepared by the MDB in 2003 and
  2005.
• Identify in those municipalities which
  fundamentally have misinterpreted the
  requirements of the function.
• The MD B database on the activities linked to
  functions will allow specific municipalities to
  be isolated for provincial support and guidance.

46
Recommendations

• Local government stakeholders should take note of
  the contents of the report and address problem
  areas
• MECs gives serious attention to review the
  capacity of municipalities regularly and to
  readjust functions previously adjusted to local
  municipalities
• MECs to conduct capacity building initiatives
  in poorly municipalities
• dlpg uses the empirical information when
  reviewing the structures powers and functions of
  district and local municipalities when revising
  the White Paper on Local Government.

47

• Thank you