REPORT ON ACTIVITIES THE DETERMINATION OF METROPOLITAN AND DISTRICT COUNCIL BOUNDARIES

MUNICIPAL DEMARCATION BOARD REPORT ON ACTIVITIES THE DETERMINATION OF METROPOLITAN AND DISTRICT COUNCIL BOUNDARIES The Municipal Demarcation Board published a Section 26 notice on 10 August 1999 inviting views and representations on the determination of the boundaries of all category A (Metropolitan) municipalities; the boundaries of all category C (District) municipalities; and possible municipal boundaries extending across provincial boundaries. Between 6 and 14 October 1999 the boundaries of Category A and C municipalities and possible cross boundary areas were published in Provincial Gazettes. In addition to its communications with stakeholders, the Board provided, at some 55 selected venues, copies of the maps of the boundaries of District/Metropolitan municipalities. On 15 October 1999 the Constitutional Court found certain sections of the Municipal Structures Act, 1998 to be unconstitutional. In reacting to the court s judgement, the Board published afresh Section 26 Notices inviting comment from the public at large around the determination of Category A and Category C municipalities. The Board commissioned a specific study into whether or not Port Elizabeth meets the criteria as laid down in the Municipal Structures Act, which study indicated it did meet the criteria. The Board also consulted with its major stakeholders around the decision on which areas should be metropolitan areas. At its meeting on November 18 1999, the Municipal Demarcation Board applied the relevant criteria in Section 2 of the Municipal Structures Act and determined that the following areas would be category A areas: Greater Johannesburg Greater Cape Town Greater Durban Greater East Rand Greater Pretoria Greater Port Elizabeth After having considered all views and representations the Board determined the boundaries of all Category A and C municipalities and the applicable Section 21 notice was published in the provincial Gazettes from 22-26 November 1999. Objections were to be submitted by 31 January 2000. THE DETERMINATION OF CATEGORY B BOUNDARIES The section 26 notice for category B municipalities was published on 11 October 1999 with the closing date on the 2 November 1999. 1

A numb workshops were held in which the category B framework and sections 24 and 25 of the Municipal Demarcation Act No 27 of 1998 were applied in the preparation of the boundary options. In addition, cognisance was also taken, in the drafting phase, of the information obtained from the section 26 submissions. One hundred and forty seven hearings were held throughout South Africa. The Municipal Demarcation Board Meeting to consider B-municipal boundaries was held on 15 December 1999. The Section 21 notices appeared in the relevant Provincial Gazettes from 20 22 December 1999. The closing date for objections to the boundaries was 31 January 2000. CONSIDERATION OF OBJECTIONS AND REDETERMINATIONS OF CATEGORY A, B AND C BOUNDARIES As at the 15 th February 2000 a total of 2353 submissions and objections had been received by the Demarcation Board. After all objections have been duly considered the Board redetermined the boundaries of all category A, B and C municipalities and also published its proposed proposed boundaries for cross boundary municipalities. A numb district management areas were also declared. The final determination resulted in the following numb municipalities per category: Category A 6 Of which 2 are cross boundary metropolitan municipalities. Category B 232 Of which 8 are cross boundary local municipalities Category C 46 Of which 7 are cross boundary district municipalities DMAs 26 Of which 1 (Kruger Park) falls in two provinces Due to technical and other problems various boundaries had to be republished prior to the 5 December 2000 local elections. CROSS BOUNDARY AREAS After receiving the concurrence of the relevant legislatures and after the Crossboundary Act, 2000 was promulgated the Board determined the boundaries of 2 cross boundary metropolitan municipalities, 8 cross boundary local municipalities and 7 cross boundary district municipalities. The legal provisions to deal with cross boundary areas are very cumbersome and the Board recommends that they be reviewed. DISTRICT MANAGEMENT AREAS In terms of section 6 of the Municipal Structures Act, 1998 (Act No.117 of 1998) the Municipal Demarcation Board, after having consulted the Minister and the 2

MECs responsible for local government in the provinces, declared various areas that must have municipalities of both category C and category B as district management areas. The Boards final declaration was published in Government Gazette 21617 of 29 September 2000. AD-HOC DELIMITATIONS The Board dealt with a numb ad-hoc request for the re-determinations of the boundaries that existed prior to the demarcation for the 5 December 2000 local elections. The long and tedious process required by the Demarcation Act demands an urgent review of the legislation to that such request for minor adjustments can be dealt with expeditiously. DELIMITATION OF WARDS In the interests of transparency, the MDB released a Discussion Document dealing with not only the process to be embarked upon in finalizing ward boundaries, but data on the numb registered voters and existing councillors in each of these municipal areas. These data allowed all stakeholders to debate these issues in anticipation of the formula for the numb councillors. After the Minster published the formula for the numb councillors on 5 April 1999 the MECs responsible for local government published the numb councillors in Provincial Gazettes. All wards were sucessfully delimited priot to the elections. RESULTS OF THE DEMARCATION AND DELIMITATION PROCESSES The 843 municipalities established during 1995/96 have been rationalised to 284 as follows: 6 (A Category) Metropolitan areas (Johannesburg, Pretoria, East Rand, Durban, Port Elizabeth and Cape Town) 47 (C category) District Municipalities 231 (B category) Local Municipalities MUNICIPALITIES PER PROVINCE PROVINCE Metros (A) Crossboundary Metros (A) Local (B) Crossboundary Local (B) District (C) Cross- boun-dary District (C) Eastern Cape 1 38 6 Free State 20 5 Gauteng 1 2 7 2 1 2 KwaZulu-Natal 1 50 Mpumalanga 1 17 5 3 3 North-West 1 21 3 4 3 Northern Cape 24 2 3 2 Northern 22 4 4 2 Province Western Cape 1 24 5 3

Sub total 4 2 223 8 41 6 TOTAL: 284 MUNICIPALITIES NUMBER OF COUNCILLORS AND WARDS: 1995/96 AND 5 DECEMBER 2000 LOCAL ELECTIONS WARD 1996 PR 199 6 TOTAL 1996 TOTAL 2000 Ward s 2000 Cross Boundary Municipalities included EC 789 114 1935 1440 601 6 FS 844 464 1308 732 291 GT 559 484 1043 982 446CBLC2,CBLC8,East Rand, Pretoria MP 598 504 1102 954 393CB4,CB6 NC 466 345 811 404 162CB1,CB7 NP 364 195 559 1056 445CBLC3,CBLC5 NW 380 375 755 820 338 WC 959 695 1654 781 330 KZN 993 120 8 2201 1782 748 Total 5952 541 6 11368 8951 3754 STATISTICS PER MUNICIPALITY Section 12 lor lors to Province Port Port Nelson Mandela 54 108 Elizabet Elizabeth h EC05b1 Umzimkul Umzimkulu 17 33 4 u (ECO5b1) EC05b2 Mount Ayliff Umzimvubu (EC05b2) 32 63 11 EC101 Graaff- Camdeboo (EC101) 6 11 1 Reinet EC102 Somerset Blue Crane Route 5 1 East EC103 Jansenvill Ikwezi 0 5 1 e EC104 Grahamst own Makana 12 24 3 EC105 Port Alfred Ndlambe 9 17 2 EC106 Kirkwood Sunday's River Valley 7 13 2 EC107 Willowmor Baviaans 0 5 1 e EC108 Humansdo Kouga 19 3 rp EC109 Kareedou w Kou-Kamma 4 8 1 4

Section 12 lor lors to EC121 Idutywa Mbhashe 24 47 4 EC122 Butterwor Mnquma 31 61 6 th EC123 Komga Great Kei 6 12 1 EC124 Stutterhei Amahlati 20 39 4 m EC125 East Buffalo City 45 89 20 London EC126 Peddie Ngqushwa 14 27 3 EC127 Alice Nkonkobe 21 41 4 EC128 Adelaide Nxuba 4 8 1 EC131 Cradock Inxuba Yethemba 9 17 2 EC132 Tarkastad Tsolwana 5 1 EC133 Molteno Inkwanca 0 6 1 EC134 Queensto wn Lukanji 24 48 5 EC135 Cofimvaba Intsika Yethu 23 46 5 EC136 Lady Frere Emalahleni 14 27 3 EC137 Engcobo Engcobo 15 29 3 EC138 Elliot Sakhisizwe 6 11 1 EC141 Mount Elundini 16 32 5 Fletcher EC142 Barkly Senqu 16 32 5 East EC143 Aliwal Malethswai (EC143) 6 12 1 North EC144 Burgersdo Gariep 4 8 1 rp EC151 Bizana Mbizana 21 42 4 EC152 Ntabankul Ntabankulu 11 22 2 u EC153 Flagstaff Ingquza 25 50 5 EC154 Port St Port St Johns 13 25 2 Johns (EC154) EC155 Libode Nyandeni 23 45 5 EC156 Qumbu Mhlontlo 17 33 4 EC157 Umtata King Sabata 32 64 9 Dalindyebo 10 Western Western (10) 27 District 12 Amatola District Amatole 73 13 Stormberg North East (13) 38 District 14 Drakensbe Ukwahlamba 23 rg District 15 Transkei O.R.Tambo 53 District 44 E.G. Kei (44) 27 ECDMA 10 Aberdeen Plain 5

Section 12 ECDMA 13 Mount Zebra NP ECDMA Oviston 14 Nature Reserve ECDMA O Conners 44 Camp FS161 Koffiefont Letsemeng Local ein FS162 Trompsbu Kopanong Local rg FS163 Zastron Mohokare Local FS171 Dewetsdor Naledi Local p FS172 Bloemfont Mangaung Local ein FS173 Ladybrand Mantsopa Local FS181 Theunisse Masilonyana Local n FS182 Dealesville Tokologo Local FS183 Hoopstad Tswelopele Local FS184 Welkom Matjhabeng Local FS185 Bothaville Nala Local FS191 Senekal Setsoto Local FS192 Bethlehe Dihlabeng Local m FS193 Reitz Nketoana Local FS194 Qwa-Qwa Maluti a Phofung Local FS195 Vrede Phumelela Local FS201 Kroonstad Moqhaka Local FS203 Parys Ngwathe Local FS204 Sasolburg Metsimaholo Local FS205 Frankfort Mafube Local 16 Xhariep District 17 Motheo District lor lors to 5 10 3 7 14 3 5 10 2 4 8 1 43 86 22 8 15 2 19 2 4 7 1 7 13 1 36 72 15 12 23 3 16 31 4 17 34 4 9 17 2 34 67 11 7 14 2 24 48 7 18 36 5 17 33 4 8 15 2 14 41 6

18 19 20 FSDMA 19 Section 12 Lejweleputswa District Thabo Mofutsanyane District Northern Free State District Golden Gate Highlands NP East Rand Greater East Rand Metro Johannesb City of urg Johannesburg Tshwane Metropolitan Bronkhors Kungwini Local tspruit Carletonvi Merafong City Local lle Nokeng tsa Taemane Metropolitan Krugersdo Mogale City Local rp Randfonte Randfontein Local in Westonari Westonaria Local a Vereenigin Emfuleni Local g Meyerton Midvaal Local Heidelber Lesedi Local g Metsweding District West Rand District Sedibeng District Sterkfonte in Durban Metropolitan Metro Unicity East Rand Johann esburg Pretoria Pretoria CBLC2 CBLC8 GT02b1 Cullinan GT411 GT412 GT414 GT421 GT422 GT423 CB2 CB8 42 GTDMA 41 Durban Durban KZ211 Dududu Vulamehlo (KZ211) lor 37 38 30 lors to 0 0 88 175 109 217 76 152 12 24 5 26 51 6 6 12 4 32 64 9 19 37 4 15 29 3 43 85 22 9 18 2 11 21 2 15 39 43 1 100 200 0 10 20 3 7

Section 12 lor lors to KZ212 Scottburg h KZ212 9 18 2 KZ213 Umzumbe Khiphinkunzi (KZ213) 19 37 5 KZ214 Harding umuziwabantu 9 18 2 (KZ214) KZ215 Izingolwe Izingolweni 5 9 1 ni (KZ215) KZ216 Port Hibiscus Coast 29 58 7 Shepstone (KZ216) KZ221 Wartburg KZ221 11 22 3 KZ222 Howick KZ222 11 21 2 KZ223 Mooirivier KZ223 4 7 1 KZ224 Impendle KZ224 4 7 1 KZ225 Pietermari KZ225 37 73 15 tzburg KZ226 Camperdo wn KZ226 7 14 1 KZ227 Richmond KZ227 7 13 1 KZ232 Ladysmith Emnambithi 25 50 6 (KZ232) KZ233 Waaihoek Indaka (KZ233) 10 20 3 KZ234 Estcourt Umtshezi 7 14 2 (KZ234) KZ235 Bergville Okhahlamba 13 26 3 (KZ235) KZ236 Loskop Imbabazane 12 23 3 (KZ236) KZ241 Dundee KZ241 6 12 2 KZ242 Nqutu KZ242 13 25 4 KZ244 Pomeroy Umsinga (KZ244) 17 33 5 KZ245 Greytown Umvoti 11 21 3 (KZ245) KZ252 Newcastle Newcastle (KZ252) 31 61 11 KZ253 Utrecht Utrecht 4 7 1 (KZ253) KZ254 Durnacol Dannhauser 10 20 3 8

Section 12 lor lors to (KZ254) KZ261 Paulpieter edumbe 7 14 2 sburg (KZ261) KZ262 Pongola uphongolo 11 22 3 (KZ262) KZ263 Vryheid KZ263 20 39 5 KZ265 Nongoma Nongoma (KZ265) 19 38 5 KZ266 Ulundi Ulundi (KZ266) 24 47 5 KZ271 Emangusi Umhlabuyalingana (KZ271) 12 24 3 KZ272 Mkuze KZ272 16 32 5 KZ273 Hluhluwe Umzinene 4 7 1 (KZ273) KZ274 Somkele Hlabisa (KZ274) 19 37 5 KZ275 Mtubatuba Inyala/Mtubatuba (KZ275) 5 1 KZ281 KZ282 KZ283 KwaMbon ambi Richards Bay Ntambana na Mbonambi (KZ281) umhlathuze (KZ282) Ntambanana (KZ283) 13 25 3 30 60 8 8 15 2 KZ284 Eshowe Umlalazi 26 52 6 (KZ284) KZ285 Melmoth Mthonjaneni 6 11 1 (KZ285) KZ286 Nkandla Nkandla 14 27 3 (KZ286) KZ291 Mandeni Mandeni 16 32 4 (KZ291) KZ292 Stanger KZ292 19 37 5 KZ293 Ndwedwe Ndwedwe (KZ293) 19 37 5 KZ294 Maphumul o Maphumulo 11 21 3 9

Section 12 lor lors to (KZ294) KZ5a1 Creighton KZ5a1 10 20 3 KZ5a2 Underberg KZ5a2 0 5 1 KZ5a3 Matatiele KZ5a3 0 5 1 KZ5a4 Kokstad KZ5a4 6 11 2 KZ5a5 Ixopo KZ5a5 12 23 4 21 Ugu Ugu District 34 22 Indlovu 22 41 23 Uthukela Uthukela District 30 (23) 24 (South) Umzinyathi 23 Umzinyath (24) i 25 North 25 25 Umzimyat hi 26 Zululand Zululand District 34 (26) 27 North Umkhanyakude 27 Uthungulu 28 (South) uthungulu 39 Uthungulu (28) 29 Ilembe ilembe District 29 (29) 43 43 20 KZDMA 22 KZDMA 23 KZDMA 27 KZDMA 43 CBLC3 CBLC4 CBLC5 Highmoor/ Kamberg Park Gaints Castle Game Reserve St Lucia Park Mkhomazi Wildernes s area Marble Hall Groblersd al Burgersfor t/ohrigsta d/eastern Tubatse Greater Marble Hall Greater Groblersdal Greater Tubatse 13 26 3 29 57 7 29 57 6 MP301 Elukwatini Albert Luthuli 22 44 5 /Carolina MP302 Ermelo Msukaligwa 16 32 4 10

Section 12 lor lors to MP303 Piet Retief Mkhondo 15 30 3 MP304 Volksrust Seme 10 20 2 MP305 Standerto Lekwa 14 27 3 n MP306 Balfour Dipaleseng 6 11 1 MP307 Highveld Highveld East 31 61 8 Ridge MP311 Delmas Delmas 8 15 2 MP312 Witbank Emalahleni 32 64 8 MP313 Middelbur Middelburg 24 47 5 g MP314 Belfast Highlands 7 13 1 MP315 KwaMhlan Thembisile 30 60 7 ga MP316 Mdutjana Dr JS Moroka 30 60 7 MP321 Sabie Thaba Chweu 12 23 3 MP322 Nelspruit Mbombela 36 71 13 MP323 Barberton Umjindi 7 14 1 MP324 Nkomazi Nkomazi 30 60 7 CB3 Southern Sekhukhune Cross 42 Boundary District 30 Eastvaal District 44 31 Ngankala 50 32 Ehlanzeni 41 CBDMA 3 Schuinsdr aai Nature Reserve 0 MPDMA 31 Mdala Nature Reserve DMA Lowveld MPDMA 32 NW371 Temba NW372 Brits NW373 Rustenbur g NW374 Koster NW375 Mogwase NW381 Setlagole NW382 Ottosdal Moretele Local (NW371) NW372 Local Rustenburg Local NW374 Local Mankwe-Madikwe Local Setla-Kgobi Local (NW381) Greater Delareyville Local (NW382) 22 43 4 30 60 9 35 69 9 5 1 30 60 6 11 22 3 13 25 3 11

NW383 Mafikeng NW384 Lichtenbur g NW385 Zeerust NW391 Ganyesa NW392 Vryburg NW393 Schweizer -Reneke NW394 Reivilo NW395 Pomfret Section 12 Mafikeng Local (NW383) Lichtenburg Local (NW384) Zeerust Local (NW385) Kagisano Local (NW391) Naledi Local Schweizer-Reneke Local (NW393) Greater Taung Local Molopo Local (NW395) NW396 Christiana Christiana/Bloemhof Local NW401 Ventersdo Ventersdorp Local rp (NW401) NW402 Potchefstr oom NW403 Klerksdor p NW404 Wolmaran sstad 37 38 39 40 NWDMA 37 Pilansberg National Park Potchefstroom Local (NW402) Klerksdorp Local (NW403) Maquassi Hills Local (NW404) Bokone-Botlhaba District (37) Central District (38) Bophirima District (39) Southern District (40) lor lors to 28 56 8 19 38 5 17 34 5 9 18 3 9 18 2 6 12 2 20 40 6 4 8 1 6 11 1 5 1 20 40 5 30 63 8 15 2 CBLC1 Kuruman Kuruman- Mothibistad 9 18 4 CBLC7 Hartswate Vaalharts-Morobeng 9 18 2 50 40 25 35 1 12

Section 12 lor lors to r NC01B1 Kathu Gammagara 4 8 1 NC061 Port Nolloth Richtersveld 4 8 1 NC062 Springbok Nama Khoi 9 17 2 NC064 Garies Kamiesberg 4 7 1 NC065 Calvinia Hantam 5 9 1 NC066 Fraserbur Frasuwil 4 7 1 g NC067 Pofadder Boesmanland 4 7 1 NC071 Victoria West Sentrale Karoo 4 8 1 NC072 Colesberg Towerberg 5 1 NC073 De Aar GAROP 7 14 2 NC074 Carnarvon Kareeberg 4 7 1 NC075 Phillipstow Renosterberg 4 7 1 n NC076 Hopetown Oranje-Karoo 4 7 1 NC077 Prieska Priemanday 4 8 1 NC078 Griekwast Siyancuma 5 9 1 ad NC081 Mier Mier 0 5 1 NC082 Keimoes! Kei! Kariep 8 15 2 NC083 Upington Gariep 12 23 3 NC084 Groblersh I Poort 4 7 1 oop NC085 Postmasb Re A Ipela 6 11 2 urg NC086 Danielskui l Dan-Lime 4 8 1 NC091 Kimberley Kimberley 27 53 9 NC092 Barkley West Thusanang 7 13 2 NC093 Warrenton Warrenton 5 9 1 NW1a1 Kgalagadi Segonyana 11 21 4 CB1 Kalahari Kalahari-Kgalagadi 17 District District 6 Namakwa District 14 13

Section 12 lor lors to 7 Bo-Karoo 17 8 Benede Oranje 18 District 9 Diamantveld District 25 NCDMA Namaqual 06 and NCDMA Bo Karoo 07 NCDMA Benede 08 NCDMA Diamondfi 09 elds NCDMA Kalahari CB1 CB CBLC6 Bushbuckr Bushbuckridge 34 68 16 idge NP03A2 Ngwaritsi Makhudutamaga 28 56 7 NP03A3 Fetagomo Fetakgomo 11 22 2 NP04A1 Hoedsprui Drakensberg 10 2 t NP331 Giyani Greater Giyani 25 50 5 NP332 Duiwelsklo Greater Letaba 23 46 5 of NP333 Tzaneen Greater Tzaneen 33 66 9 NP334 Phalaborw Ba-Phalaborwa 14 28 3 a NP341 Messina Musina 5 9 1 NP342 Mutale/Ma Mutale 9 17 2 sisi NP343 Thohoyan NP343 36 71 12 dou NP344 Louis Trichardt NP344 35 69 11 NP351 Bochum/M Blouberg 16 32 3 y Darling NP352 Moletje/M Aganang 18 35 5 atlala NP353 Dendron/ Molemole 12 23 1 Dikgale NP354 Pietersbur Polokwane 35 69 11 g NP355 Lebowakg Lepelle-Nkumpi 25 49 5 omo NP361 Thabazim Thabazimbi 8 16 2 14

Section 12 lor lors to bi NP362 Ellisras Lephalale 11 21 2 NP364 Naboomsp NP364 4 7 1 ruit NP365 Nylstroom Modimolle 7 13 1 NP366 Warmbath Bela Bela 7 13 2 NP367 Potgieters Mogalakwena 31 62 8 rus CB4 Eastern 29 33 Lowveld Mopani District 37 34 Far North Vhembe District 43 35 Central Central District 42 36 Bosveld Waterberg 28 CBDMA 4 Kruger Park Cape Town Cape Town City of Cape Town 100 200 WC011 Vredendal Matzikama 7 13 2 WC012 Citrusdal Cederberg 6 12 2 WC013 Velddrif Bergrivier 7 13 2 WC014 West Saldanha Bay 10 20 4 Coast Peninsula WC015 Malmesbu Swartland 19 3 ry WC022 Ceres Witzenberg 11 21 2 WC023 Paarl Drakenstein 29 58 8 WC024 Stellenbos Stellenbosch 18 35 4 ch WC025 Worcester Breede Valley 19 37 5 WC026 Robertson Breede River/Winelands 19 2 WC031 Caledon Theewaterskloof 19 5 WC032 Greater Overstrand 9 18 4 Hermanus WC033 Bredasdor p Cape Agulhas 5 1 WC034 Barrydale/ Swellenda m Swellendam 5 1 15

Section 12 lor lors to WC041 Ladismith Kannaland 5 9 1 WC042 Heidelber Langeberg 8 15 2 g/riversd ale WC043 Mossel Mossel Bay 11 21 3 Bay WC044 George George 18 35 5 WC045 Oudtshoor Oudtshoorn 12 23 3 n WC047 Greater Plettenberg Bay 5 1 Plettenber g Bay WC048 Knysna Knysna 8 16 2 WC051 Laingsbur Laingsburg 0 6 1 g WC052 Prins Prince Albert 0 6 1 Albert WC053 Beaufort West Beaufort West 7 13 5 1 West West Coast District 23 Coast 2 Brede Boland District 36 River 3 Overberg Overberg District 20 4 South Cape 5 Central Karoo WCDMA West 01 Coast WCDMA Brede 02 River WCDMA Overberg 03 WCDMA South 04 Cape WCDMA Central 05 Karoo Garden Route/Klein Karoo District Central Karoo District POWERS AND FUNCTIONS 30 14 The Board has two major functions pertaining to powers and functions: To determine as to whether powers and functions are performed and to make recommendations to MECs regarding authorisations; and To determine the capacity of municipalities and to advise MECs as to whether powers and functions should be adjusted. 16

DETERMINATION OF CAPACITY PRE DECEMBER 5 2000 ELECTIONS When the Board determined municipal boundaries prior to the local elections on 5 December 2000 category B and C municipalities were classified in the following broad capacity categories: Category C (District) Municipalities: The Municipal Demarcation Board examined the potential administrative and financial capacity of each municipality. The 47 District municipalities divide fairly evenly into the following groups: Classification 1 Highly Capacitated Category C Municipalities (have significant budgets; can easily perform all the Category C functions, can perform category B functions; and have the administrative and financial management capacity and infrastructure to collect revenue and to govern on its own initiative the local affairs of its community) Classification 2 Capacitated Category C Municipalities (have relative large budgets; can perform Category C functions and can perform some Category B functions; and have reasonable administrative and financial management capacity and infrastructure to collect revenue and to govern on its own initiative the local affairs of its community). Classification 3 Fairly to Very Limited Capacitated Category C Municipalities: (have medium to small budgets; can, to some extent, perform Category C functions; can possibly perform minor Category B functions; and have fair to very limited administrative and financial management capacity and infrastructure to collect revenue and to govern on its own initiative the local affairs of its community). Category B (Local) Municipalities: Classification 1 - Aspirant Metropolitan Areas: (At least 5 municipalities): These aspirant metropolitan areas are classified as having the following characteristics: fulfil some of the criteria to be metropolitan areas as specified in section 2 of the Municipal Structures Act No 117 of 1998; have significant budgets (without electricity have budgets in excess of R300 million per year); have over 40% of the registered voters from the District in which they are located; presently undertake almost all of the Category B functions, and could, on an agency basis, undertake for the District Municipalities all of the Category C functions. Care must be exercised in how these areas are dealt with in the division of functions and powers. Classification 2 Significant and Large Category B Municipalities (At least 17 municipalities fall into this category) The criteria for the classification 2 municipalities are as follows: fulfil some but limited numb the criteria to be metropolitan areas, 17

have large budgets (without electricity in excess of R100.1 million 300 million per annum) presently undertake most of the Category B functions, and have the capacity to assume all Category B functions. Care must be exercised in how these areas are dealt with in the division of functions and powers. In individual cases, where the District lacks capacity, they be allocated some of the Category C functions and powers. Classification 3 Significant Category B Municipalities (At least 22 municipalities fall into this category) The criteria for the classification 3 municipalities are as follows: have fairly large budgets (without electricity in excess of R50.1 million 100 million per annum) are mainly an agglomeration of small towns, presently undertake most of the Category B functions, and have the capacity to assume most if not all Category B functions. In most of these cases the Category B municipalities should have the capacity to adequately deal with their statutory functions and powers. Classification 4 - Strong Category B Municipalities: (At least 84 municipalities fall into this category) The criteria for the classification 4 municipalities are as follows: budgets between R10.1-50 million, and has a dominant urban centre (may be a small town but with good infrastructure) with other smaller urban centres. It could be that in some cases the District Municipalities in which these municipalities are located be allocated selected Category B powers and functions. Classification 5 - Weak Category B Municipalities (At least 27 municipalities fall into this category) The criteria for the classification 5 municipalities are as follows: budgets between R1-10 million, and has a dominant urban centre with limited infrastructure limited income base reliance on grant finance These are areas, which presently do not have much capacity. These Category B municipalities are largely dependent on grants. In these cases, attention must be placed on strengthening the Category C municipalities first. Classification 6 Very Limited Capacity Category B Municipalities (At least 46 municipalities fall into this category and for a further 30 municipalities there is insufficient information, but they are probably also in this category) 18

The criteria for the classification 6 municipalities are as follows: budgets between R1-10 million, and has one or no urban centre heavy reliance on grant finance These are areas, which presently do not have much capacity and are primarily found in the former homeland areas. These Category B municipalities are largely dependent on grants. In these cases, attention must be placed on strengthening the Category C municipalities first. While the above was a useful pre election guide, modifications are necessary to ensure the Board legally complies with Municipal Structures Amendment Act. These modifications are detailed in the section below. DETERMINATION OF CAPACITY DURING THE TRANSITION PERIOD (5 DECEMBER 2000 UNTIL 4 DECEMBER 2002) Process The Board has recently conducted investigations at provincial and local level to update its database in order to be well placed to make recommendations for authorizations to the MECs. Part of this process meant the development of a broad conceptual framework for application across all municipalities. This involved classifying all Category B and C municipalities into four categories. The four categories were arrived at in the following way: The Board considered two baseline indices for municipal capacity: (i) a ratio of the numb municipal employees per capita and (ii) municipal income excluding electricity. Each of the indices is ranked accordingly for all category B municipalities: Income excluding electricity: 1 = > 300million per annum 2 = 100.1 300 million per annum 3 = 50.1 100 million per annum 4 = 15 50 million per annum 5 = 5.1 15 million per annum 6 = < 5 million Employee per capita ratio 1 = 1 299 2 = 300-599 3 = 600 899 4 = 900 1499 5 = >1500 6 = No staff For category C municipalities, each of the following indices were ranked accordingly: Income: 19

1 = > 50 million 2 = 30-49 3 = 20-29 4 = 10-19 5 = 5-9 6 = < 5 or no income Employee per capita: 1 = < 1000 2 = 1001-2000 3 = 2001-5000 4 = 5000-20000 5 = > 20000 6 = no employees Following this, district and local municipalities were classified as follows: Classification 1- High capacity Classification 2 Some capacity Classification 3 Limited capacity Classification 4 Very limited The resultant municipal classifications are attached as Appendix B. Once the rankings or classifications were determined, the legal requirements for each municipal function were then applied. This approach resulted in two matrices, outlined below, to guide the assessment of where a municipal function is best undertaken. Each municipality would fall into a particular category in the matrix and the recommended allocation is provided for that position. The matrices are: Section 84(1) Possibilities District Functions CAPACITY Category C High Category C Some Category C Limited Category C Very Limited Category B High* C level B and C level B level B level Category B Some C level B and C level B level B level Category B C level C level C level C level Limited Category B Very Limited C level C level C level C level * Aspirant metro excluded all functions should remain at the B level Local Municipal Functions Category C Category C Category C Category C High Some Limited Very Limited Category B High B level B level B level B level Category B Some B level B level B level B level Category B Limited C level/b level C level/b level Some B and C level Some B and C level Category B Very Limited C level/b level C level/b level Some B and C level Some B and C level 20

This framework has been applied to each municipality, taking due cognizance of each function that is actually performed in that municipality (based on the data base of the Board). In this way a national framework is applied in the context of local conditions in a consistent and even-handed way across the entire country. The recommendations that arise from this process takes cognizance of legal factors such as the MEC being able to issue an authorisation only if: The district municipality or the local municipality (as the case may be) cannot or does not perform the function or exercise the power in the relevant area. For any reason, it is necessary to ensure the continued performance of the function or the exercise of the power in that areas. The Demarcation Board has recommended the authorisation. Consequently, the Board has considered at least the following key questions, which are built into the conceptual framework: Are all the municipal functions being performed within each district area? Is the function being performed at a category B or C level? Where should the function be performed in terms of section 84? If the performance is currently not compliant with section 84, why not? What can be done to move toward compliance with the legislation? What are the consequences of compliance for example some Category B municipalities rely on Category C functions for resources and a narrowly focussed reassignment of these functions and powers might lead to a collapse of functioning category B municipalities. Approach taken by the Board: In applying the conceptual framework and while tempering it with submissions received from municipalities and provincial governments, the Board developed the following principles to be used in arriving at its recommendations: Principle 1: That there should no longer be any geographic split of functions ie if a category B performs a functions - it should be for the entire area. This adjustment needs to be made because of the confusion presently where a Category B municipality is responsible for a particular function only in the former TLC areas of the Category B municipality. This creates problems in that a Category B municipality might only have jurisdiction over part of a ward. The Board s view is that where a Category B municipality is able to perform a function it should perform that function for the whole geographic area of the municipality. Principle 2: That if a Category C municipality has some capacity it may perform a function for only some of the category Bs in an area but not necessarily all. Principle 3: That some functions might need to be split with some aspects indicated for partial adjustments - the nature of the adjustment will still need to be decided. Principle 4: That where a function is not performed at all in a District municipality or local municipality it must be assigned to one or more municipalities. 21

The Board is in a process of eliciting comments from MECs and municipalities. The consequences of sec 18 authorisations in the short term also needs to be assessed. How will the Board's recommendations affect viability, service delivery and the transformation process? Based on comments received, the Board will formally make its recommendations to MECs by early April 2001. 3. DETERMINATION OF CAPACITY DURING THE FINAL PHASE (POST 4 DECEMBER 2002) The Board has recognised that a more focused approach is required for the postelection phase. The Structures Act defines capacity in relation to a municipality to include the administrative and financial management capacity and infrastructure that enables a municipality to collect revenue and to govern on its own initiative the local government affairs of its community. The definition specifies certain indicators that should be included in assessing the capacity of a municipality to perform a function. However, it does not exclude the development of other indicators. With the exception of perhaps the percentage of the population within a municipal area benefiting from the performance of a certain function, the criteria to be used to determine whether a municipality has the capacity to perform a function, will probably have to differ from function to function. The capacity to perform a function is also directly linked to the standard or level at which a service is to be provided. Experts on the different municipal functions have been approached to advise the Board on possible criteria to be applied to determine as to whether sufficient capacity is available to perform a function in a municipal area. A sound division of powers and functions is key to planning and stability. It directly influence staff establishments, budgets, planning (IDPs) and viability. No certainty about powers and functions is possible without clarity on definitions. Although all functions are important, clarity on definitions and devolution of the 4 "national" functions are important for the transformation process. It is therefore imperative that a team consisting of MDB, DPLG. DWAF, Health and M&E work together and reach consensus on this matter. Devolusion of other national and provincial functions to municipalities should also be co-ordinated to ensure consistency and to protect local resources. Furthermore adjustments should be made with great circumspection so as to ensure that some municipalities are not totally disempowered. It appears that legislation and/or policy need to be revisited. There are clear contradictions between the White Paper and the Structures Act. 22

Clarity on the Constitutional future of the country and especially the future role of provinces could also contribute to the debate as to whether South Africa should have a strong or a weak district council system. WORK IN PROCESS The Board is attending to various other project with a view to enhance the transformation process including: Assistance to departments to align their functional service delivery boundaries with municipal boundaries; Information dissemination through the Board's web-site and SA Explorer; Update of its GIS and data sets; Assistance to various departments such as Local Government (NP), DPLG, DTI, Justice and Health. RECOMMENDATIONS It is recommended that: The authorisation process be completed as soon as possible so as to create a measure of stability and an environment conducive for transformation, planning and budgeting; A team be appointed from all relevant departments to clarify the definitions of municipal powers and functions and to determine the consequances of the division in terms of the existing provisions of the Structures Act; The Demarcation Act be amended so as to deal expiditously with requests for changes to boundaries The Structures Act be amended to, amongst others, create a more flexible system for the division of powers and functions and to make it possible to transform "aspirant metros" into fully fledged metropolitan municipalities prior to the next local elections Provinces provide the MDB with the sec 12 names of the new municipalities and details of all the notices they have published in terms of the Structures Act so that a national database can be compiled and distributed to local government stakeholders. 23