SOL PLAATJE LOCAL MUNICIPALITY
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1 introduction The Housing Development Agency ( HDA ) is a national public development agency that promotes sustainable communities by making well located and appropriately planned land and buildings available for the development of human settlements. The Agency has developed and deployed an information system which includes municipal profiles for selected municipalities. The intent of this profile is to provide guidelines and advice to Provincial Department of Human Settlements as well as municipalities on efficient utilization of land and economic government infrastructure investments in support of integrated human settlements development. about the template The template was compiled for the Housing Development Agency using a number of different data sources. The 2011 Census information from StatsSA was used extensively to represent socio-economic information. The financial profile data was extracted from the municipalities most recent financial statements. The Integrated Development Plan (IDP), Housing Development Plan (MHDP) and Spatial Development Framework of each municipality also provided inputs into the municipal profile. Where possible, each source of information is quoted as part of the specific figure, table or chart. The municipal profile is structured in the following sections: Section 1 provides background information on the municipality, including land use data; Section 2 deals with demographic information such as population growth and income; Section 3 provides an economic overview of the municipality; Section 4 investigates the financial status of the municipality; Section 5 gives headline data on the property market in the municipality; Section 6 looks at housing demand and historic delivery of RDP houses; Section 7 displays a land rent analysis; Section 8 provides a snapshot of water, sanitation and electricity delivery; Section 9 displays a cost surface analysis; Section 10 deals with budget implications of servicing the housing backlog, Section 11 analyse the performance of the planning function at municipal level. about Sol Plaatje Local Municipality Source: Municipal Demarcation Board (2013) Sol Plaatje LM is located in the Frances Baard District Municipality in the Northern Cape province. The Sol Plaatje LM is the second largest municipality in the district covering an area of hectares. Kimberley is the core urban node in the municipality and also functions as the administrative centre of the municipality. Contact Details: Private Bag X5030, Kimberley, 8300 Sol Plaatje Drive, Kimberley Tel : /6100 Fax : Website: Sol Plaatje LM:. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 1
2 Land Cover Category % Thicket, Bushland, Bush Clumps & High Fynbos 35,38% Shrubland & Low Fynbos 49,58% Grassland 4,26% Forest Plantations 0,01% Waterbodies 0,47% Wetlands 1,95% Natural surface 0,02% Erosion 1,56% Degraded land 0,58% Cultivated land 2,27% Urban / Built-up : residential 1,21% Urban / Built-up : smallholdings 0,62% Urban / Built-up : commercial 0,23% Urban / Built-up : industrial / transport 0,36% Mines & Quarries 1,50% Source: National Geo-spatial Information (NGI), National Land Cover 2000 (NLC 2000). The total extent of Sol Plaatje LM is hectares. Almost 49,58% (in terms of geographic area) of Sol Plaatje LM is covered in shrubland & low fynbos. Mining, although a very important economic industry, consumes only about 1,50% of the surface area of Sol Plaatje LM. Section 1: Background % population residing on farms 1,15% Source: National Geo-spatial Information (NGI), National Land Cover 2000 (NLC 2000). Sol Plaatje LM has no Tribal / Traditional villages within the municipal boundary. More than 96,09% of the municipality is currently vacant/undeveloped. StatsSA Demarcation Board % population residing in Urban Areas 98,85% Sol Plaatje LM:. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 2
3 Number of households Section 2: Demographics population Population y = 340,81x ,12x ,93 R² = 1, Sol Plaatje LM has a population of people (StatsSA, 2011). Although the population density has increased since 2001 from 0,64pp/ha to 0,78pp/ha in 2011, it is still well below the metro average. In 2011, 0,48% of RSA population lived in Sol Plaatje LM. Year RSA Population Sol Plaatje LM % ,51% ,45% ,48% Growth -0,26% 2,26% Sol Plaatje has a LOW POPULATION DENSITY OF 0,78 people per hectare, largely due to 98,76% of the municipality not being developed. income 1996 to to 2011 It is calculated that by 2020, the population of Sol Plaatje LM is expected to be Households that may qualify for subsidies based on income Household Monthly Income From , the % people earning less than R3500/month reduced with: 1,05% per annum Less than R 3500/month R R12 801/Month Households that may qualify for subsidies based on income Monthly income category Households in Sol Plaatje LM are relatively poor with almost 11,36% earning no income at all. 81,74% of the entire municipality earns less than R12 800/month. There has been significant growth in the income bracket earning between R 3500 and R 12800/month a clear signal for rental or gap market housing options. From , the % people earning between R 3500 and R12801/month grew at: 4,82% per annum Less than R 3500/month Sol Plaatje LM:. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency R R12 801/Month Page 3
4 Number of people Highest level of education achieved in 2011 Section 2: Demographics level of education Highest level of education : Other 28: Higher Degree (Masters / PhD) 27: Honours degree 26: Bachelors Degree and Post graduate Diploma 25: Bachelors Degree 24: Post Higher Diploma (Masters, Doctoral Diploma) 23: Higher Diploma 22: Diploma with Grade 12 / Std 10 21: Certificate with Grade 12 / Std 10 18: NTC VI / N6 17: NTC V / N5 16: NTC IV / N4 15: NTC III / N3 / NIC / (V) Level 4 12: Grade 12 / Standard 10 / Form 5 / Matric / NTC111 5: Grade 12 / Std 10 / Form 5 20: Diploma with less than Grade 12 / Std 10 19: Certificate with less than Grade 12 / Std 10 14: NTC II / N2 / NIC / (V) Level 3 13: NTC I / N1 / NIC / (V) Level 2 11: Grade 11 / Standard 9 / Form 4 10: Grade 10 / Standard 8 / Form 3 09: Grade 9 / Standard 7 / Form 2 / ABET 4 08: Grade 8 / Standard 6 / Form 1 07: Grade 7 / Standard 5 / ABET 3 06: Grade 6 / Standard 4 05: Grade 5 / Standard 3 / ABET 2 04: Grade 4 / Standard 2 03: Grade 3 / Standard 1 / ABET 1 (Kha Ri Gude,SANLI) 02: Grade 2 / Sub B 01: Grade 1 / Sub A 00: Grade 0 1: No schooling Number of people The percentage of Sol Plaatje LM population with no schooling decreased between 2001 and 2011 with 6,03%. The percentage of people with no schooling was recorded at 5,19% in gender distribution 53% 52% 51% 50% 49% 48% 47% 46% 45% Gender Distribution ,98% 52,17% 51,48% 48,52% 48,02% 47,83% The female gender constitutes approximately 51,48% of the total population. This trend is unlikely in mining towns where the mining industry is predominantly male orientated. Male Female Sol Plaatje LM:. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 4
5 % Share Section 3: Economics economic sector & strength Share of GVA Economic strength Share of employment 35% 28,41% 30% 25% 20% 15% 10% 5% 0% 33,27% Economic Strength - GVA (R Millions) Based on constant 2005 prices 2005 Economic sector 2004 The dominant economic sector in Sol Plaatje LM is general government, which contributes to more than 33,27% of the GVA of the municipality. This industry employs more than 28,41% of Sol Plaatje s people. All other economic sectors contribute less than 20% each of the GVA of Sol Plaatje LM. Mining contributes only 9,63% of the municipal GVA. 8% 6% 4% 2% 0% -2% -4% Comparison of Economic Growth Rates ( ) Sol PlaatjeLM Metro Average Northern Cape National GDP In 2011, the unemployment rate was: 31,9% Metro Average Sol PlaatjeLM In 2011, Sol Plaatje LM contributed to 0,52% of the National GVA. Municipality Economic Growth Rate Average City of Cape Town 4,0% -1,1% 3,0% 3,0% 3,1% Buffalo City LM 3,3% -1,3% 1,2% 2,1% 2,0% Nelson Mandela Bay Metro 0,0% -4,6% 0,6% 0,6% -0,2% Mangaung 4,8% -0,9% 1,8% 2,4% 2,8% ethekwini 2,9% -1,6% 2,1% 2,4% 2,2% Ekurhuleni 4,1% -3,5% 3,3% 3,8% 2,7% City of Johannesburg 5,7% -1,0% 2,9% 3,8% 3,6% City of Tshwane 2,6% 3,1% 3,0% 3,1% 3,7% Sol Plaatje LM 2,7% -1,8% 1,9% 3,6% 2,2% Of the 8 metropolitan municipalities in South Africa, only Buffalo City, ethekwini and Nelson Mandela Bay exhibit a lower average annual economic growth rate than Sol Plaatjie LM. Sol Plaatje LM:. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 5
6 RAND/MILLION annual collection rate Section 4: Financial Status of the municipality 87,02% of all billed revenue has been collected, the benchmark is 95% R R R 800 R 600 R 400 R 200 R 0 Annual Collection Rate (2013) 2013 (Rand/million) Revenue billed R Renevue collected R Loss in cash flow R 152 The payment level of 87,02% resulted in a loss of R 152 million in cash flow which should have been utilised in service delivery or in capital investment. Future sustainability and growth is dependent on a collection rate of approximately 95% and a focused revenue collection strategy should be implemented. own revenue to total operating revenue Total Revenue (excl. Capital grants); R Own revenue; R Operational grants; R 167 R 0 R 200 R 400 R 600 R 800 R R R R RAND/MILLION In 2013, 88,45% of the Municipality s revenue was internally generated, this has increased with 0,75% from 2012, which indicates an decreasing dependency on government grants to sustain operations. asset turnover Service revenue to assets employed (asset turnover) measures whether there is sufficient investment in economic assets. The benchmark is 20% R R 800 R 600 R 400 R 200 R 0 R 583 R 700 R 838 R ,08% 119,83% 2012 (Rand/million) 2013 (Rand/million) Infrastructure carrying value Service charges The historic infrastructure base is sufficient to support the current service delivery demands. The downward trend however indicates the need to invest in economic assets to ensure future generation of revenue. Sol Plaatje LM:. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 6
7 No of Transfers budget implementation R Section 4: Financial status of the municipality Revenue and expenditure management 92,97% 100,88% The graph indicates to what extent the Municipality is able to deliver on its planned budget. The target is 100%. 16,12% actual expenditure on capital budget R ,97% actual expenditure on operational budget R R 0 16,12% Capital Expenditure Operating Expenditure Operating Revenue 100,88% actual revenue realised Budgeted Actual Section 5: Property market Average land value(r/m²) per land use - based on 2011/2014 Valuation Roll Undetermined R 486,29 Residential R 479,51 Public service infrastructure R 164,26 Municipal R 137,34 Mine R 158,11 Industrial R 80,88 Government R 607,18 Commercial R 1 737,01 Business Agricultural 26, Total Number of Transfers (above 20 transfers) R 6 264,52 Highest Transfers (above R2 million) R R R R R R R 0 Source: Sol Plaatje Valuation Roll 2011/2014 Sol Plaatje LM:. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 7
8 Section 6: Housing demand and supply dwelling type & housing backlog The municipal housing backlog decreased between 1996 and 2001 with 3,30% and increased between 2001 and 2011 with 2,06%. Housing backlog housing delivery Dwelling type Other 472 Servants 305 Informal settlement 7857 Backyard shack 2517 House/flat/room in 923 Semi-detached house 1477 Townhouse 306 Cluster house 180 Flat or apartment 1587 Traditional dwelling 163 House Households Annual Delivery of RDP Houses 300 Number of Residential Buildings Completed Dwelling Houses Completed Flats & Townhouses Completed Dwelling Houses Smaller than 80 (m2) Dwelling Houses Smaller than 80 (m2) The building plan statistics indicates that only 1 RDP house was built in Service New Houses (Subsidised) Backlog Census /13 Provision /14 Target (Adj) /15 Targets /16 (Estimate) /17 (Estimate) 500 Annual housing delivery target: (IDP 2013/2017) Average annual delivery: (StatsSA Building plans approved ) Current total number of units planned: (IDP 2013/2017) Current own fund committed towards housing development: IDP (IDP 2013/2017) Sol Plaatje LM:. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency R 54 (mill) Page 8
9 Rand Per/m² Rand per/m² Rand per/m² Rand per/m² Rand per/m² Rand per/m² land rent Section 7: Land Rent Analysis The land rent theory is a geographical economic theory that refers to how the price and demand for real estate change as the distance from the central business district (CBD) increases. It states that different land users will compete with one another for land close to the city centre. R900 R800 R700 R600 R500 R400 R300 R200 R100 R0 Average Total Property value Residential Properties R 300 R 250 R 200 R 150 R 100 R 50 R 0 Average Total Property value Municipal Properties Time in min from CBD Time in min from CBD R 3000 R 2500 R 2000 R 1500 R 1000 R 500 R 0 Average Total Property value Government Properties Time in min from CBD R8 000 R7 000 R6 000 R5 000 R4 000 R3 000 R2 000 R1 000 R- Average Total Property value Business Properties Time in min from CBD R 180 R 160 R 140 R 120 R 100 R 80 R 60 R 40 R 20 R 0 Average Total Property value Agriculture Properties R 1200 R 1000 R 800 R 600 R 400 R 200 R 0 Average Total Property value Vacant Properties Time in min from CBD Time in min from CBD Source: Sol Plaatje Valuation Roll 2011/2014 Sol Plaatje LM:. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 9
10 Section 8: Water, sanitation & electricity water Access to Piped Water: % % Access to Piped Water: No access to piped water No access to piped water Water on community stand: >200m from dwelling Water on community stand: <200m from dwelling 80% 60% 40% Water on community stand: >200m from dwelling Water on community stand: <200m from dwelling Water inside yard 20% Water inside yard Water inside dwelling Number of Households 0% % in 2001 % in 2011 Water inside dwelling sanitation % Access to Sanitation: Other Sanitation % Other Bucket toilet Bucket toilet Pit toilet without ventilation Pit toilet with ventilation (VIP) Chemical toilet Flush toilet (with septic tank) Flush toilet (connected to sewerage 80% 60% 40% Pit toilet without ventilation Pit toilet with ventilation (VIP) Chemical toilet None Sanitation 20% Flush toilet (with septic tank) Number of households 0% % in 2001 % in 2011 Flush toilet (connected to sewerage system) None electricity % Source of Lighting: Source of Lighting % None 80% Solar None Solar 60% Candles Candles Paraffin Gas Electricity 40% 20% Paraffin Gas Electricity Number of Households 0% % in 2001 % in 2011 Sol Plaatje LM:. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 10
11 cost surface analysis Section 9: Cost surface analysis To develop land everywhere in the municipality does not necessarily cost the same. Often vacant land is developed at a cost significantly higher than elsewhere in the municipality. This cost surface map for the municipality will indicate the premium payable based on certain environmental and geological constraints. Sol Plaatje LM:. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 11
12 Section 10: Spatial development framework Sol Plaatje LMSDF Source: Sol Plaatje LM Spatial Development Framework (SDF) Sol Plaatje LM:. Developed by (Pty) Ltd on behalf of the Housing Development Agency Page 12
13 Section 10: Spatial development framework Kimberly SDF Source: Sol Plaatje LM Spatial Development Framework (SDF) Sol Plaatje LM:. Developed by (Pty) Ltd on behalf of the Housing Development Agency Page 13
14 Section 10: Spatial development framework accessibility analysis -CBD This map tests housing projects identified in the SDF in terms of how accessible these projects are to the CBD of the Municipality (essentially a test to see if proposals attempt a compact city design). Sol Plaatje LM:. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 14
15 Section 10: Spatial development framework accessibility analysis active mines This map tests housing projects identified in the SDF in terms of how accessible these projects are to employment opportunities. Since mining is the major employer in the municipality, all active mines were used as origins. Sol Plaatje LM:. Developed by (Pty) Ltd on behalf of the Housing Development Agency Page 15
16 Section 10: Spatial development framework budget implications of the SDF The current housing backlog for Sol Plaatje is approximately units. Budget required to service Total Housing Backlog (at different densities) R R R R R R R R GROSS DENSITY (UNITS/HECTARE Water Sewer Electricity Roads & Storm water Top Structures The annual housing target must be 708 units in order to complete the planned projects by Budget required to service Annual Housing Target (at different densities) R R R R R R GROSS DENSITY (UNITS/HECTARE Water Sewer Electricity Roads & Storm water Top Structures Sol Plaatje LM:. Developed by (Pty) Ltd on behalf of the Housing Development Agency Page 16
17 Long term strategic plan Integrated Development Plan (IDP) in place Spatial Development Framework (SDF) in place Land Use Management Scheme (LUMS) in place summary The purpose of this practises assessment for the municipality was to: audit planning capacity within the municipality, as it relates to; land use management capacity; spatial planning capacity; audit the actual planning systems, tools and methodologies of the municipality; long term development strategy; spatial development frameworks; integrated development plans; land use management systems, land use schemes, zoning schemes or town planning schemes; other policies and frameworks such as densification policies, nodal plans etc.; audit planning governance within the municipality; processes used to compile and implement the plans listed in the previous point; audit any software tools, systems and data used in the compilation of the above planning products or in support of planning governance. Section 11: Planning practises assessment Town Planning Practises Assessment Statutory Compliance Non-statutory Plans/Policies Town Planning Activities Information Systems Organisational Tactics 0% 10% 20% 30% 40% 50% 60% 70% scope of planning practises Any requirements to include in future LUS? Elements the LUS is lacking? Is staff adequately trained to deal with land use management issues? Linkage with billing systems / LIS to record changes in land use / zoning / tariffs Adequate number of staff to deal with land use management in the municipality Information system in place to deal with amendments to the LUMS Land use data updated annually Land use data available LUMS include innovative practises to promote integration between strategic planning "Informality" (this can refer to informal settlements, rural villages, or informal business) is Map 3s in place All development controls reflected in the Scheme Clauses Scheme Clauses in place Amendments to the LUMS recorded LUMS updated on a regular basis Wall-to-wall land use management scheme in place Any requirements to include in future SDF? Elements the SDF is lacking? Staff adequately skilled to deal with SDF Adequate number of staff to deal with SDF Include basic guidelines/implications for the LUMS of the municipality Quantifies current social facilities and number of facilities needed to accommodate growth Implementation of urban edge or urban growth boundary Indicates areas of protection and conservation SDF defines the linkage and corridors between nodes or settlements SDF identifies growth areas, nodes and priority investment areas SDF includes desired spatial form and land use patterns for municipality SDF a reflection of the current development status in municipality Any requirements to include in future IDP? Elements the IDP is lacking? Includes key performance indicators and performance targets. Includes three year capital budget allocation Includes Spatial Development Framework (SDF) Identifies communities which do not have access to basic municipal services Assesses the existing level of development in the municipality, Expresses the municipality s most critical developmental and internal transformation needs Incorporates the long term vision from GDS Incorporates national and provincial planning directives Identify long term development objectives Sets out 20 year(+) vision of the municipality in achieving its development objectives 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Sol Plaatje LM:. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 17
18 GIS Spatial analysis and modelling tools Land information system Building Plan Approval Development applications Co nsu ltat ion planning activities Section 11: Planning practises assessment This section investigates the legislative requirements of having an IDP, SDF and land use scheme in place. Though not legislated, it also includes a long term strategic plan (e.g. a growth and development strategy). On the whole it the planning scope of practises in the municipality can be seen as competent. All the requirements of legislation are met. Internal and external stakeholders consulted Application finalised within allocated time span Town planning recommendation formulated Comments from stakeholders collated Applications distributed to internal and external stakeholders Regular site inspections held Electronic system available to deal with development applications Up to date amendment scheme register in place Linkage with valuation roll system to inform supplementary valuations Processes (including legal) in place to deal with non compliance of building Certificates issued within allocated timespan Inspections carried out Application finalised within allocated time span Recommendation formulated Comments from stakeholders collated Applications distributed to internal and external stakeholders Regular site inspections held Electronic system available to deal with development applications Up to date building plan register in place 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% systems The various planning tools and products at the disposal of a municipality are supported by various information systems. These systems can be relatively large and complex (e.g. an agent based transport and land use modelling system) or relatively simple (such as an excel spread sheet calculating the number of social facilities to be provided as for different population scenarios). Information systems can thus be defined in this particular context as the means by which skilled municipal officials use software and information to support the process of spatial restructuring. LIS is 'user-friendly' and readily accessible to all staff System stores historical data System links with LUMS System links with valuation roll System links with billing systems System links with GIS Models available to measure level of service for social facilities Models available to quantify need for social facilities Models available to forecast future land use based on Models available to forecast population growth (in Support of Networking with and participation at district or provincial Partnerships in place to ensure access to provincial and GIS strategy in place Staff use system and system functionality as appropriate for GIS is 'user-friendly' and readily accessible to all staff GIS is linked to the LUMS GIS stores historical data Cadastral records are accurately described using the GIS can be linked to other systems (Billing, valuation roll, Cadastral changes are recorded and updated on a regular 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Sol Plaatje LM:. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 18
19 Strategic alignment Human resources Change control organisational tactics Section 11: Planning practises assessment The organisational tactics, or rather the extent to which the organisation support the Planning function can at best be described as being in its awareness phase. It is largely left up to individuals to up skill themselves or to acquire necessary information required for personal growth. More interaction with planning role-players are required for the planning function to grow the municipality. This includes access to information and networking with planners at other municipalities or other spheres of government. Organisation takes an active role in participating in steering groups/working parties and or preparing submissions on proposed legislative changes Organisation informs staff of legislative changes affecting their work Organisation monitors possible legislative changes or changes in standards that may have an impact on its operations or policies Is any skills required to ensure detail project proposals (e.g. design framework) is implemented? Project packaging and implementation? Is the planning function adequate (capacity, trainining, skills etc) to give effect to proposals from the SDF / other plans? Level of Town Planning expertise is appropriate to each job Staff regularly attend workshops as appropriate to close skill gaps Skill gaps in Town Planning are assessed Corporate data required for Strategic Planning is easily available and used consistently across the organisation Customer KPIs for IDP and Planning function are aligned Town Planning policies and plans are well aligned and have strong linkages to ensure corporate objectives are achieved 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% human resources Function/Section No. of Posts No. of employees Vacancies Management & other Building Control & Regulations Planning & Human Settlement Development Planning Properties Housing Environmental Management Sol Plaatje LM:. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 19
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