Total number of households Formal main dwelling
1.2.9 SERVICE DELIVERY OVERVIEW
1.2.9.1 Basic Service Delivery Performance Highlights
Table 1:20: Basic Service Delivery Highlights
Highlight Description
Stellenbosch
Wastewater Treatment Plant
Won the “Project between R 250 million and R 1 billion” category at the Consulting Engineers South Africa (CESA) AON Engineering Excellence Awards.
Fire and Disaster Services
The revision of the Disaster Management Plan is done yearly in accordance with Section 53(1) of the Disaster Amendment Act, 2015 (Act No. 16 of 2015).
Smoke alarm installation project continues.
Disaster Management and Fire and Rescue Services received a new fleet; water tankers, bakkies, etc., including specialised tools of trade.
Outdoor gym installed at La Motte and Stellenbosch Fire Stations.
50% of vacancies filled.
Parks, Rivers and Open Spaces
Lawn at Main Building Plein Street, Klapmuts town entrances and selected parks were replaced with artificial grass due to water saving initiatives. This project worked very well especially, and the area remained neat and admirable.
2019/2020
Ward 1: New outdoor gym was installed; Ward 2 Pathways in Park next to community hall in La Motte.; New fencing and outdoor gym in Lanquedoc ward 3; new gates was installed at river park in ward 4
New fencing completed in The Ridge ward 5 and play items in Kreefgat Park Ward 5. Ward 5 swings and play items was refurbished. Beautification on Ida’s Valley entrance done in ward 6. New pathway and refurbishment of pathway in ward 7 Brummer Park. New park signage installed in ward 7. Wards 8, 9 and 10 new pots with plants and flowers to beautify the town, ward 10 received new outdoor gym. Park equipment installed in various parks and park bins installed in most wards. Town entrance beautified at Kayamandi entrance ward 13. New slate pathway installed in ward 9 Voorgelegen gardens. Pots planted up outside Utopia. RSEP park completed in Ward 16 with fencing artificial grass play items and outdoor gym. New play items, new fencing, new outdoor gym, integrated park project commenced in Last Street Ward 16. Noble Park received new gates and play item and outdoor gym. Community garden was erected with public participation in ward 16.
New play items and outdoor gym installed in ward 17. Gates was installed at Kloof Street Park ward
Highlight Description
17. Pots were beautified in Long street ward 17 and 16. Wilger Park received play items in ward 17.
New Play items was installed in Ward 18 and Adam Street Park was upgraded. Gym was installed in ward 19. Montrose Rose Park received fencing and artificial grass in ward 21. War 22 received outdoor gym, new bins, new signage. Ward 20 received outdoor gym and artificial grass.
Parks received one bakkie and two trucks in Stellenbosch and one truck in Franschhoek.
Cemeteries received new fleet one truck and one bakkie and Jamestown Cemetery landscaping was improved.
Palisade Fencing installed in Curry Street Park Cloetesville. Project was successfully completed.
Fencing, Play equipment and outdoor gym installed in Kreefgat Park Ida’s Valley. Project was successfully completed.
Play equipment and outdoor gym installed in Kudu Park Klapmuts. Project was successfully completed.
Play equipment installed in Adam Street Klapmuts Project was successfully completed.
Outdoor gym equipment installed in ward 3, 21 ,19 ,18 and 16. Projects were successfully completed.
Flower pots were installed in ward 8 Victoria Street; ward 11 Adam Tas Road centre island and ward 17 Welgevonden Circle. Project was successfully completed.
Parks and cemeteries received new fleet, water trailers, trucks and bakkies. All items have been paid and put to work.
Social Housing
The municipality was awarded an amount of R500 000 for a feasibility study by the Social Housing Regulator Authority (SHRA) on selected Restructuring Zones. SHRA followed a procurement process and appointed a service provider to do the necessary feasibility studies which will assist the municipality to appoint a Social Housing Institution (SHI) or Other Development Agency (ODA). The feasibility study was submitted to Council and approved accordingly. The development processes that were included in the feasibility study, will also assist the municipality in Social Housing projects going forward.
1.2.9.2 Basic services delivery challenges
Table 1:21: Basic Service Delivery Challenges
Service Area Challenge Actions to address
Social Service expectations on Local Government
It is expected of municipalities to assist provincial and national government in the rolling out of services that is not defined as functions of local government (funding and management of temporary homeless shelters), implementation of the Children’s Act, Local Drug Action Committees.
In the case of the last two examples, it is captured in legislation as the responsibility of municipalities without it being reflected in Schedule 4 and 5 B of the constitution. Budget expenditure on items not perceived to be functions of local government becomes difficult to motivate.
Issue raised with the leadership of the municipality.
Development Services, Asset Management and Project Management Unit (PMU)
The municipality has been without a permanent Infrastructure Asset Management and Systems Manager since the post was created in 2018. The current staff shortage, in Asset Management and Development Services leads to excessive workload on remaining staff and in turn has an effect on meeting deadlines – notably those with legislated timeframes. Developers can suffer financial losses and economic activity can be delayed / stalled if the municipality doesn’t respond to applications and requests timeously. Similarly, non-compliance with DoRA Integrated Urban Development Grant (IUDG) conditions could lead to IUDG funds being stopped. Therefore, sufficient capacity within this Department is of critical importance.
The following posts have been earmarked for appointment in the 2020/21 financial year:
1. Senior Clerk reporting to Senior Manager
Development Services – Technician
Wayleave
Administration and The installation of telecommunications infrastructure in the road reserve increased
The current organogram must be modified to include a dedicated Wayleave Officer.
Service Area Challenge Actions to address Management dramatically post the announcement of the
National Lockdown Regulations in the final quarter of the year. Due to a combination of staff
shortages and the National Lockdown Regulations, there was a failure to adequately coordinate and regulate all work carried out within the public road reserves which resulted in inconvenience to the public and damage to existing services. Though telecommunication licensees have been operating in the WC024, the current levels of activity require a more coordinated and concerted approach.
A Wayleave Policy will be tabled in 2020/21 for review and implementation.
The following post has been earmarked for appointment in the 2020/21 financial year:
Asset Management and Systems – Wayleave Office – Field Inspector. Though not nearly enough to enable Quality Assurance and Control across the entire WC024 – this post is currently vacant after a resignation during 2019/20.
Illegal and unsafe electricity connections Vandalism of electrical Infrastructure
Kayamandi and Langrug have illegal and unsafe electrical connections that pose danger to the communities.
An arrangement with law enforces to provide required protection to the officials when removing the illegal and unsafe connections have been made, however with no success.
The department will keep on trying.
The department of Labour was also advised of the challenge. Structures are often extended around the existing infrastructure which makes it impossible to access when repairs need to be conducted. Satellite dishes installed on the poles also have the same effect.
The municipality is faced with a challenge of vandalism and forceful opening of its infrastructure to:
1. Steal copper
2. Connect the illegal connections
The municipality has fenced three of the critical mini-substations. A tender for the fencing of the remaining mini-substation and kiosks is at evaluation stages.
Organisational Design
Sourcing of experienced, skilled and qualified electricians remain a challenge. A total of seven vacancies existing dating as far back as 2017. As a result, Sups and Managers are often forced to perform duties that would have been performed by these electricians. This has a snowball effect, as their duties in such instances, are neglected, which hampers severely on service delivery.
JDs were sent to TASK, however the challenge still remain, despite the TASK positive
outcome, as the outcome was not effected correctly.
Security at facilities Highly problematic, especially Beltana depot where access control is less than desirable.
Beltana committee established to deal with all issues pertaining to facility. Law Enforcement to be more effective.
The access control is currently been investigated to improve the situation.
Roads and Transport
Theft of infrastructure.
Theft of manhole covers and pedestrian handrails on bridges and theft of foundation material (sand and stone) under roads and bridges pose a safety risk to pedestrians and residents.
Measures being put in place to replace vandalised and stolen materials as soon as practically possible, and using alternative materials where possible (such as handrails made of fibre cement instead of steel).
Road network operating at capacity and not adequate to meet peak travel demands, resulting in frequent and high levels of congestion.
Prioritising the planning and implementation of new Roads and Transport infrastructure as well as improvements and upgrades to existing Infrastructure, such as Roadways, NMT facilities and Taxi facilities.
Parks and Rivers
Vandalism and theft in Kayamandi Parks.
Fencing stolen in Thubelitsha Park and Play equipment stolen and vandalised in other parks.
A decision has been taken that the municipality is not proceeding with the development of Thubelitsha Park. Discussions is ongoing with community members to help with the security at play parks.
Lack of security leading to vandalism and dumping on selected Parks and Cemeteries
Lack of immediate cemetery space remaining a challenge whilst we await authorisations for new zoned cemeteries.
Is not enough staff or other resources to provide security at all the play parks.
A new section has been developed in Jamestown cemetery to accommodate burials until a new cemetery is developed
Service Area Challenge Actions to address Lack of approved tenders affecting the
operational programme. Additional tenders have been put in place to
be able to provide service to the community.
1.2.9.3 Proportion of Households with access to Basic Services
Table 1:22: 2011 Households with minimum level of Basic Services
Service 2011
Formal Dwellings 90.7%
Informal Dwellings 9.3%
Formal Dwelling Backlog 3 149
Electricity Connections (% Share of HHS) 98.8%
Hygienic Toilets 97.2%
Water (Piped Water) 96.7%
Formal Refuse Removal (% share of HHS) 89.9%
Source: Statistics South Africa
1.2.9.4 Financial Viability Highlights
Table 1:23: Municipal Viability Highlights
Highlight Description
Capital Expenditure Framework
Developed a capital expenditure framework for the period 2019 - 2029 compliant with the requirements of the Integrated Urban Development Framework and the Spatial Planning and Land Use Management Act (SPLUMA).
Long Term Financial Plan Developed a 10-year Long Term Financial Plan that is incorporated in the capital expenditure framework.
Current ratio The Municipality maintained a very good current ratio of 1.74:1. This compares well with the norm of 1.5 to 2:1.
Collection rate
The Municipality maintained a good collection rate of 102.68 which is above the norm of 95%. This indicates that the Municipality creditor control and debt collection processes are in place and the revenue is management effectively.
Finance Charges Finance charges represent 1.87% of the total operational expenditure. This compares favourably with the norm of 6% to 8%.
Liability Management
Capital Cost (Interest Paid and Redemption) represent 3.43% of total operating expenditure. This indicates that the Municipality has the capacity to take on additional financing from borrowing to invest in revenue generating assets.
Debt Management
The Municipality’s total debt represents 17.63% of the total operational expenditure. This compares favourably with the norm of 45% and is an indication that the Municipality has the capacity to take on additional financing from borrowings.
1.2.9.5 Financial Viability Challenges
Table 1:24: Financial Viability Challenges
Challenge Description
Financial Viability
The traceability of all debtors poses a challenge to the debt collection process. Low economic growth, increase in unemployment and above inflation increases of cost of water impacts on affordability of municipal accounts.
Revenue Leakage An integrated revenue enhancement approach followed to combat revenue
leakages.
1.2.9.6 National Key Performance Indicators – Municipal Financial Viability and Management (Ratios)
The following table indicates the municipality’s performance in terms of the National Key Performance Indicators required in terms of the Local Government: Municipal Planning and the Performance Management Regulations no. 796 of 2001 and section 43 of the MSA. These key performance indicators are linked to the National Key Performance Area namely Municipal Financial Viability and Management.
Table 1:25: Financial Viability and Management (Ratios)
1.2.9.7 Financial Overview
Table 1:26: Financial Viability and Management Financial Overview
Details Original budget Adjustment Budget Actual
R Income
Grants(Operating and Capital) 313 427 329 555 285 026
Taxes, Levies and Tariffs 1 380 710 1 285 711 1 240 215
Other 225 597 219 274 217 355
Sub-Total 1 919 735 1 834 539 1 742 596
Less Expenditure 1 808 247 1 778 284 1 661 441
Net surplus/(deficit) 111 488 56 255 81 155
1.2.9.8 Operating Ratios
Table 1:27: Operating Ratios
Detail Expected norm Actual Variance
Employee Cost 25 %– 40 % 29.95% 9.05%
Repairs and Maintenance 8% 3.63% 4.37%
Finance Charges 6%-8% 1.87% 6.13%
Employee cost is below the national norm of between 25% to 40%, representing a positive outcome, Repairs and maintenance are below the norm, which indicates that expenditure on repairs and maintenance would have to be increased in future budgets to properly maintain Council’s assets.
Finance charges are 6% lower than the norm of 6-8%, this can be attributed mainly to our low reliance on borrowings to fund our capital budget.
KPA and Indicator 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
Debt coverage (total operating revenue - operating grants received):
debt service payments due within the year
42.45 64.13 41.29 40.87 46.49 25.43
Service debtors to revenue – total outstanding service debtors: revenue received for services.
18.22% 10.22% 18.09 20.7% 30.96% 25.45%
Cost coverage (available cash + investments):
monthly fixed operating expenditure.
9.89 1.4 5.71 5.75 0.33 2.41
1.2.9.9 Total Capital Expenditure
Table 1:28: Total Capital Expenditure
Detail 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20
Original Budget 294 188 452 759 463 792 418 057 528 041 558 276
Adjustment Budget 251 031 437 183 482 580 499 855 563 550 577 905
Actual 230 351 348 861 410 562 433 682 493 303 405 931
1.2.9.10 Municipal Standard Chart of Accounts
MFMA Circular No. 80: Municipal Financial Systems and Processes requirements in support of the Municipal Standard Chart of Accounts (mSCOA) issued in terms of the Municipal Finance Management Act No. 56 of 2003. In MFMA SCOA Circular 1 it was indicated that mSCOA is a business reform rather than a mere financial reform and requires a multi-dimensional relationship.
The municipal standard chart of accounts was implemented in Stellenbosch Municipality on 1 July 2017.
The Municipality is in continuous engagement with the service provider, National Treasury and other municipalities through various working groups as well as online platforms to improve mSCOA compliance and functionality.