SALGA PROPOSED DISTRICT BASED DELIVERY MODEL

1. SALGA PROPOSED DISTRICT BASED DELIVERY MODEL

2. PRESENTATION OUTLINE Re-affirming President’s Call 01 Contextualizing the Approach 02 Work packages and suggested model/s 03 Suggested Way Forward 04

3. THE KEY 7 PRIORITIES (STATE OF THE NATION ADDRESS, 2019) • 1.Economic transformation and job creation • 2.Education, skills and health • 3.Consolidating the social wage through reliable and quality • basic services is another important priority • 4.Spatial integration, human settlements and local • government • 5.Social cohesion and safe communities is another key • priority • 6.Building a capable, ethical and developmental State • 7.A better Africa and world. “We will be adopting a district-based approach – focusing on the 44 districts and 8 metros – to speed up service delivery, ensuring that municipalities are properly supported and adequately resourced”

4. Our members are expected to deliver on section 152 of the Constitution • Municipal council must strive within its capacity to achieve its objectives: • Provide democratic and accountable government for local communities; • Ensure the provision of services to communities in a sustainable manner; • Promote a safe and healthy environment; • Promote social and economic development; • Encourage the involvement of communities and community organisations in matters of local government Spatial Integration Social Cohesion Building a capable and ethical state Reliable and Quality Basic services Economic Development

5. 4 WALL TO WALL MUNICIPALITIES (257) Gauteng: 11 Limpopo: 27 Mpumalanga: 20 North West : 22 Free State: 23 Northern Cape : 31 KwaZulu-Natal: 54 Eastern Cape: 39 8 Metros 44 District Municipalities 205 Local Municipalities Western Cape: 30

6. DISTRIBUTION OF CATEGORY A and C MUNICIPALITIES • The MIIF further classifies district municipalities into 2 categories: • C1 refers to district municipalities that are not water services authorities • C2 defines district municipalities that are water services authorities • Metros are generally located in large, densely populated areas, with strong, complex and diverse economies, and municipalities have exclusive municipal executive and legislative authority in their respective areas. • By contrast, DMs are predominantly located in much poorer, sparsely populated rural areas. They are tasked with the responsibility to coordinate with other spheres of government and with planning and resource allocation across their constituent LMs.

7. HOUSEHOLD BY TYPE Traditional dwellings made of traditional material are common in KZN (Amajuba & Umkhanyakude with households in these districts making up slightly over 50%) and some parts of LIM (Waterberg) Approximately 70% of households live in a formal house / brick structure on a separate stand or yard. Total Households in the 44 DMs 8.8 mil Districts in Limpopo have about 87% of their households living in a formal house /brick on a separate stand/yard.

8. OBJECTIVES OF THE ASSIGNMENT • Profiling  44 districts as yardsticks for socio economic development,  anchors and facilitators towards the  attainment of the  medium term strategic framework objectives • Exploring a regional approach to fast -tracking delivery of reliable and quality of basic services • Seek to explore optimal coordination and collaboration of government efforts to ensure local and regional social cohesion, alignment of infrastructural funding, development and management; • Seek to propose appropriate resources are invested on building the state of district government, to enable them to fulfil their constitutional and local government objectives.

9. PRINCIPLES UNDERPINNING OUR APPROACH • Acknowledge the three spheres of Government as being distinctive, interdependent and interrelated • Acknowledge and respect the constitutional mandates and roles and responsibilities of difference Spheres of Government • Upholding principles contained in Chapter 3 of the Constitution • Funds follows functions

10. The Central Karoo District has Full time staff mainly in Road Transport with over 100 staff, There seems to be no part time and vacant posts in the district.

11. Key interlinking challenges facing municipalities and the local government sector Capabilities, Governance & Leadership Fiscal Policy & Financial Management Service Delivery & Infrastructure Spatial Transformation & Inclusion Weakening municipal governance and leadership characterised by poor oversight, limited consequence management, instability at senior management levels, and a lack of skills undermine service delivery and transformation at the local sphere Increase in coverage of basic services but under pressure from widening funding gap for infrastructure, poor life cycle asset management, maintenance and effective project implementation, as well as lack of technical capabilities. Spatial transformation and inclusive communities undermined by depressed economic conditions, increasing impact of climate change, regressing social cohesion, poor coordination in planning, access to land, bulk services, limited decentralisation in housing delivery, transport challenges and safety and security Increase of municipalities in financial distress due to many factors like: increase in the cost of services (tariffs), decrease in revenue collection, supply chain management inefficiencies, and irregular, fruitless and wasteful expenditure , low revenue bases, high levels of unemployment & poverty.

12. LOCAL GOVERNMENT WHITE PAPER, 1998, VISION ON DISTRICT GOVERNMENT The White paper on local government envisioned the need for district government, where the emphases was that, historically, the only form of local government that is outside the metropolitan areas was found in small market towns and regional services councils. District government were envisioned in the White paper to fulfil the following key roles:- • To be re-organised around a set of standard planning and development regions and given key responsibilities for district-wide integrated development planning, including land-use planning, economic planning and development, and transport planning; • Provide for infrastructural development agents that we required to continue through the retention of Regional Services Council Levies. District government to provide bulk-services where required; • Ensure that the created district government have the ability to provide on-demand assistance, as well as systematic capacity building to municipalities will be promoted. The capacity-building role of district government should be focussed on increasing the capacity of Category (B) municipalities to assume municipal functions; • In areas where municipalities with inadequate administrative capacity, that the district government provide and maintain appropriate levels of municipal services that are legally permitted and actively fostered. The role of district municipalities as a category originates from Section 155 of the Constitution, which provides for the three categories of municipality, but leaves it to national legislation to establish more specific criteria for determining when an area should have a single Category (A) municipality or when it should have municipalities of both Category (B) and (C).

13. THE LOCAL GOVERNMENT: MUNIICPAL STRUCTURES ACT, 1998 • The Municipal Structures Act, 1998, made provision for the division of powers and functions between a district and local municipalities. • Section 83 (2) of the Structures Act, provided that the powers and functions of local government must be divided in the case of a district municipality and the local municipalities within the area of the district municipality, fundamentally though section 83(3) indicated that district municipality must seek to achieve the integrated, sustainable and equitable social and economic development of its area as a whole by:- • Ensuring that integrated development planning for the district as a whole; • Promoting bulk infrastructural development and services for district as a whole; • Building the capacity of local municipalities in its area to perform their functions and exercise their powers where such capacity is lacking; and • Promote the equitable distribution of resources between the local municipalities in its area to ensure appropriate levels of municipal service within the area • Ideally district were envisioned to be the developmental agencies within the regions where they govern, however, the division of such powers and functions between district and local also posed problems for the effective functioning of districts.

14. SALGA DISTRICT BASED SERVICE DELIVERY COORDINATION MODEL

15. COORDINATED AND INTEGRATED APPROACH INTEGRATED DEVELOPMENT PLAN MEDIUM TERM STRATEGIC FRAMEWORK COMMUNITIES INTERGOVERNMENTAL APPROACH

16. IMPROVING THE IGR SYSTEM TO GIVE EFFECT TO THE DBM • NATIONAL PRESIDENTIAL COORDINATING COMMITTEE (PCC) 154 of the CONSTITUTION NATIONAL SECTORAL PLANS NDP, 2030 BUDGET FORUM: LOCAL GOVERNMENT MEDIUM TERM STRATEGIC FRAMEWORK (MTSF) SECTOR MINMEC’s Provincial development plans • PROVINCIAL PREMIERS INTERGOVERNMETAL FORUM (PCF) COORDINATE Implementation Protocols or Service Level Agreements established SUPPORT Intergovernmental transfers (MIG; MSFIG) BUILD CAPACITY • Human Settlements • Transport and Roads • Solid Waste • Water and Sanitation; • Infrastructure; • Energy • . SPATIAL DEVELOPMENT FRAMEWORKS • LOCAL DISRICT INTERGOVERNMENTAL FORUM (DCF) SDBIP’s INSTITUTIONAL CAPACITY IDP’s

17. HORIZONTAL AND VERTICAL APPROACH WORK PACKAGES BASED ON POWERS AND FUNCTIONS 44 VERTICAL DIFFERENTIATED APPROACH UNIFORM APPROACH 44 1 HORIZONTAL

18. HORIZONTAL WORK PACKAGES • Work Package 1: Service Delivery • Primary Objective: To facilitate coherent Infrastructure Planning, development and management • Suggested Focus: Regional, Bulk and Resource Recovery Project/s on Trading Services Infrastructure, Integrated Infrastructure Asset Management • Proposed approach: Establish District Project/s Support Facilities District • Possible Model/s: Shared Services, Build Operate, Train and Transfer, Service Contracts , Concession, Performance Based Contracts, Municipal Entities, SPVs ENERGY SOLID WASTE WATER AND SANITATION

19. SERVICE DELIVERY: DISTRICT BASED MODEL

20. Work package 2: Economic Development • Primary Objective: To facilitate investment, economic growth and job creation • Suggested Primary Focus: MTSF, Provincial and Municipal Priorities • Proposed Approach: Develop economic project prospectus and index on cost of doing business in the District • Possible Model/s: District/s Economic Agencies and support of PPP – Industrial Parks HORIZONTAL WORK PACKAGES

21. HORIZONTAL WORK PACKAGES • Work package 3: Spatial Planning and Land Use • Suggested Primary Focus: Spatial Planning Instrument/s and Government Land use management process • Proposed Approach: Differentiated approach based on planning instrument/s IUDF, Rural Densification programme, STR. SDFs • Possible Mode/s: PPP GIS Database and dashboards

22. HORIZONTAL WORK PACKAGES • Work Package 4: Infrastructure Financing • Primary Objective: To facilitate infrastructure borrowing and funding • Suggested Primary Focus: Infrastructure Financing for trading services and income generating projects • Proposed Approach: Municipal cooperation and consolidation of resources and for infrastructure financing • Possible model/s:Pooled Financing Mechanism(s), Municipal Bonds

23. HORIZONTAL WORK PACKAGES • Work package 5: One Institutional Capability • Primary Objectives: To ensure requisite capacity and capability to attain Districts objectives using various model/s • Suggested Primary Focus: Constant exploration of optimal internal and external service delivery model/s • Proposed Approach: “Standardisation” of organisational structures and uniform basic skills • Possible Model/s: A mixture of deliver mechanism/s

24. HORIZONTAL WORK PACKAGES • Work package 6: One Regularity Regime • Primary Objectives: To facilitate one Regulatory Regime • Suggested Primary Focus: Municipal law/s and service charters • Proposed Approach:Initiation, promulgation and enforcement of District common by-laws, Credit Control mechanisms(s), service charter and enforcement approaches • Possible Model/s: Common Law/s and Service Charter approaches - Implementation mechanism/s will be informed by circumstances

25. DISTRIBUTION OF DISTRICT FUNCTIONS

26. VERTICAL WORK PACKAGES (DIFFERENTIATED APPROACH) • Work package 1: Roads and Transport • Primary Objective: To facilitate integrated transport system as a catalyst for socio economic development • Suggested Primary Focus: Transport and Roads planning, Regulatory Regime, integrated transport and road planning, asset management and maintenance • Proposed approach: Development of integrated transport plan • Possible Mode/s: PPP, SPVs for all modes of transport

27. VERTICAL WORK PACKAGES (DIFFERENTIATED APPROACH) • Work package 2: Public Works Trading Services Infrastructure • Primary Objective: To facilitate support to organs of state in the management of trading services infrastructure • Suggested Primary Focus: Institutional infrastructure – Schools, Prisons, Clinics • Proposed approach: Integrated infrastructure planning, Operations and Maintenance and Asset management including common norms and standards • Possible Model/s: Same as trading services

28. VERTICAL WORK PACKAGES (DIFFERENTIATED APPROACH) • Work package 3: Social cohesion and safe communities • Primary Objective: To facilitate integrated community cohesion and community upliftment • Suggested Primary Focus: Management of Community Infrastructure Facilities • Proposed Approach: Development of District infrastructure and programmes to uplift vulnerable communities • Possible Model/s: Same as Trading services

29. SUGGESTED WAY FORWARD

30. SOME ISSUE TO BE IRONED OUT • Disaster Management (vertical vs horizontal) • Procurement Process • Funding Instruments • Organisational structures • Grading of municipalities

31. RECOMMENDATIONS • Agree in principle to profile the role of Districts/Metros as “agents” of transformation, Facilitators/Implementers of Regional/Project/s based delivery model/s and integrators of planning • Further engage with Municipalities and identified stakeholders on the suggested approach • Present the suggested models to relevant IGR and SALGA Structures • Update the paper as inputs are received • Consider to serve the district based service delivery model to all Provincial Members Assembly (PMAs) for further refinement and possible implementation

33. STRATEGIC FOCUS FOR EFFECTIVE DISTRICT BASED MODEL

34. THANK YOU