MAKHADO 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. Makhado Local Municipality Source: Municipal Demarcation Board (2013) Makhado Local Municipality is one of four local municipalities in the Vhembe District. It borders with Musina in the north, Thulamela in the east, Molemole in the west (Capricorn District) and Giyani in the south (Mopani District). The municipality is almost hectares in extent, of which 3,4% is developed. Contact Details: Private Bag X2596, Louis Trichardt, Krogh Street, Loius Trichardt, Limpopo, 0920 Tel : (015) Fax : (015) Luisb@makhado.gov.za Website: Makhado Local Municipality :. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 1
2 Land Cover Category % coverage Waterbodies 0,14% Plantations and woodlots 2,17% Cultivated land 9,55% Forest and woodland 1,34% Bush 62,52% Grassland 14,46% Bare 1,36% Erosion 0,15% Scrub and forest thicket 4,93% Chicken/pig batteries 0,00% Mines and quarries 0,03% Smallholdings 0,02% Urban landfills 0,00% Urban/built up area: Commercial 0,02% Urban/built up area: Industrial and transport 0,04% Urban/built up area: Residential 1,07% Urban rural cluster (low density) 2,17% Urban/built up area: Other 0,00% Source: Limpopo Province, Land Cover Data set, ESKOM 2013, GeoTerraImage (GTI) Pty Ltd, Pretoria, South Africa The total extent of Makhado LM is hectares. Almost 62,52% (in terms of geographic area) of Makhado Local Municipality is covered in bush fields. Section 1: Background Mining, although a very important economic industry, consumes only about 0,03% of the surface area of Makhado Local Municipality. More than 96,64% of the municipality is currently vacant/undeveloped. Source: Limpopo Province, Land Cover Data set, ESKOM 2013, GeoTerraImage (GTI) Pty Ltd, Pretoria, South Africa Makhado Local Municipality has many Tribal / Traditional villages spread across its municipal boundary, 85,94% of the population reside in these areas. % population residing in Tribal / Traditional Villages 85,94% StatsSA Demarcation Board % population residing in Urban Areas 8,76% Makhado Local Municipality :. 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 = 4 309,19x ,32 R² = 0, Makhado LM has a population of people (StatsSA, 2011). Although the population density has increased since 2002, it is still well below the metro average. Year RSA Population Makhado Local Municipality % ,10% ,10% ,00% Growth 2,09% 0,47% Makhado has a LOW POPULATION DENSITY OF 0,62 people per hectare, largely due to 96,64% of the municipality not being developed to to 2011 By 2020, the population of Makhado Local Municipality is expected to be income Households that may qualify for subsidies based on income Household Monthly Income 2011 From , the % people earning less than R3 500/month increased with: 0,41% per annum Less than R 3500/month R R12 801/Month 0 Households that may qualify for subsidies based on income Monthly income category Households in Makhado LM are relatively poor with almost 11,95% earning no income at all and 92,84% earn less than R per/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 R3 500 to R12 801/month grew at: 11,69% per annum Less than R 3500/month Makhado Local Municipality :. 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 Other Higher Degree (Masters / PhD) Honours degree Bachelors Degree and Post graduate Diploma Bachelors Degree Post Higher Diploma (Masters, Doctoral Diploma) Higher Diploma Diploma with Grade 12 / Std 10 Certificate with Grade 12 / Std 10 NTC VI / N6 NTC V / N5 NTC IV / N4 NTC III / N3 / NIC / (V) Level 4 Grade 12 / Standard 10 / Form 5 / Matric / NTC111 Grade 12 / Std 10 / Form 5 Diploma with less than Grade 12 / Std 10 Certificate with less than Grade 12 / Std 10 NTC II / N2 / NIC / (V) Level 3 NTC I / N1 / NIC / (V) Level 2 Grade 11 / Standard 9 / Form 4 Grade 10 / Standard 8 / Form 3 Grade 9 / Standard 7 / Form 2 / ABET 4 Grade 8 / Standard 6 / Form 1 Grade 7 / Standard 5 / ABET 3 Grade 6 / Standard 4 Grade 5 / Standard 3 / ABET 2 Grade 4 / Standard 2 Grade 3 / Standard 1 / ABET 1 (Kha Ri Gude,SANLI) Grade 2 / Sub B Grade 1 / Sub A Grade 0 No schooling Highest level of education 2011 In 2001, 22,57% of the population living in Makhado had no education. In 2011, the percentage of people with no education decreased to 10,72% Number of people gender distribution 60% 50% 40% 30% 20% 10% 0% Gender Distribution ,01% 55,34% 54,11% 44,99% 44,66% 45,89% The female gender constitutes approximately 54,11% of the total population. This trend is fairly unlikely in mining towns where the mining industry is predominantly male orientated Male Female Makhado Local Municipality :. 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 2011 Economic Strength - GVA (R Millions) (Based on constant 2005 prices) 40% 30% 20% 10% 0% 27,37% 14,35% Economic sector 2004 The dominant economic sector in Makhado LM is general government, which contributes to more than 27, 37% of the GVA of the municipality. This industry employs more than 14,35% of Makhado s people. All other economic sectors contribute less than 20% each of the GVA of Makhado Local Municipality. 6% 4% 2% Comparison of Economic Growth Rates ( ) Metro Average Makhado LM In 2011, Makhado LM contributed to 0,48% 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% 0% -2% Makhado LM Limpopo GVA Metro Average National GDP In 2011, the unemployment 36,72% rate was: 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% Makhado LM 4,4% -0,1% 1,5% 2,1% 2,6% Of the 8 metropolitan municipalities in South Africa, Nelson Mandela Bay, ethekwini and Buffalo City exhibit a lower average annual economic growth rate ( ) than Makhado LM. Makhado Local Municipality :. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 5
6 RAND/MILLION Section 4: Financial Status of the municipality annual collection rate 85,52% of all billed revenue has been collected, the benchmark is 95% R250 R200 R150 R100 R50 R- Revenue billed Renevue collected Loss in cash flow Annual Collection Rate (2013) 2013 (Rand/million) R244 R209 R35 The payment level of 85,52% resulted in a loss of R 35 million in cash flow which should have been utilised for service delivery or for 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 535 Own revenue; R 287 Operational grants; R 249 R 0 R 200 R 400 R 600 RAND/MILLION MILLIONS Although 53,53% of the Municipality s revenue was internally generated in 2013, this has decreased from 57,08% during 2012, which indicates an increasing dependency on government grants to sustain operations. R R R 500 R 0 asset turnover 2012 (Rand/million) 15% 15% 2013 (Rand/million) Infrastructure carrying value Service charges Service revenue to assets employed (asset turnover) measures whether there is sufficient investment in economic assets. The benchmark is 20%. The historic infrastructure base is sufficient to support the current service delivery demands. Makhado Local Municipality :. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 6
7 No of Transfers budget implementation Section 4: Financial status of the municipality Revenue and expenditure management Indicates to what extent the Municipality is able to deliver on its planned budget. The target is 100%. R R R R R R R ,09% 95,31% 91,84% 20,09% actual expenditure on capital budget 95,31% actual expenditure on operational budget 71,84% actual revenue realised R 0 Capital Expenditure Operating Expenditure Operating Revenue Budgeted Actual Section 5: Property market Villages Vacant Special RSA Residential Public Service Public Open Space Municipal Institutional Industrial Governmental Educational Business Agricultural R 1,00 R 24,63 R 20,81 R 45,80 R 25,16 R 58,51 R 14,03 R 0,51 Average land value(r/m²) per land use R 95,62 R 153,82 R 190,62 R 368,65 R 398,44 R 445,80 Highest Transfers Total Number of Transfers R R R R R R R Source: Makhado Valuation Roll 2014/2018 Makhado Local Municipality :. 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 Dwelling type Housing backlog The municipal housing backlog decreased from in 1996 to almost in housing delivery Other Servants quarters/granny Informal settlement Backyard shack House/flat/room in Semi-detached house Townhouse Cluster house Flat or apartment Traditional dwelling House Households Annual Delivery of RDP Houses Number of Residential Buildings Completed Dwelling Houses Completed Flats & Townhouses Completed Dwelling Houses Smaller than 80 (m2) Location Number Of Units Location Number Of Units Ravele 30 Maelula 30 Madabani 30 Kunda 30 Midoroni 30 Phadzima 30 Muraleni 30 Tshitavha 30 Tshikwarani 30 Matidza 30 Muduluni 30 Rabali 30 Hamutsha 60 Mawani 20 Tsianda 30 Tshirolwe 20 Ha-Mutsha 30 Thembhaluvhilo 20 Tshakuma 60 Manyii 20 Paradise 20 Tshikuwi 20 Dwelling Houses Smaller than 80 (m2) The building plan statistics indicates that 512 RDP house were built in Annual housing delivery target: (Makhado Reviewed IDP 2014/2015) Average annual delivery: (StatsSA Building plans approved ) Current total number of units planned: (Makhado Reviewed IDP 2014/2015) Makhado Local Municipality :. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 8
9 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. Average Total Property value - Agricultural Properties Average Total Property value - Business & Commercial Properties R R R R R R R R 0 R R R R R 800 R 600 R 400 R 200 R 0 Time in min from CBD Time in min from CBD Average Total Property value - Industrial Properties Average Total Property value - Residential Properties R 600 R 500 R 400 R 300 R 200 R 100 R 0 R R 800 R 600 R 400 R 200 R 0 Time in min from CBD Time in min from CBD Average Total Property value - Vacant Properties R 250 R 200 R 150 R 100 R 50 R 0 Time in min from CBD Source: Makhado Valuation Roll 2014/2018 Makhado Local Municipality :. 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 Water inside yard 80% 60% 40% Water on community stand: >200m from dwelling Water on community stand: <200m from dwelling Water inside yard Water inside dwelling 20% Number of Households 0% % in 2001 % in 2011 Water inside dwelling sanitation Sanitation % % Sanitation: Other Bucket toilet Other Bucket toilet Pit toilet without ventilation Pit toilet with ventilation (VIP) Chemical toilet Flush toilet (with septic tank) Flush toilet (connected to sewerage None Sanitation Number of Households 80% 60% 40% 20% 0% % in 2001 % in 2011 Pit toilet without ventilation Pit toilet with ventilation (VIP) Chemical toilet Flush toilet (with septic tank) Flush toilet (connected to sewerage system) None electricity % Source of Lighting: Source of Lighting % None 80% None Solar 60% Candles 40% Paraffin Gas 20% Electricity 0% % in 2001 % in 2011 Number of Households Makhado Local Municipality :. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Solar Candles Paraffin Gas Electricity 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. Makhado Local Municipality :. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 11
12 Section 10: Spatial development framework spatial development framework Source: Makhado Municipality Integrated Development Plan, 2014/2015 Final Review Makhado Local Municipality :. Developed by (Pty) Ltd on behalf of the Housing Development Agency Page 12
13 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). Makhado Local Municipality :. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 13
14 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. Makhado Local Municipality :. Developed by (Pty) Ltd on behalf of the Housing Development Agency Page 14
15 Section 10: Spatial development framework budget implications of the SDF The current housing backlog for Makhado LM is approximately units. Budget required to service Total Housing Backlog (at different densities) R 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 660 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 R R R R R GROSS DENSITY (UNITS/HECTARE Water Sewer Electricity Roads & Storm water Top Structures Makhado Local Municipality :. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 15
16 Long term strategic plan Integrated Development Plan (IDP) in place Spatial Development Framework (SDF) in place Land Use Management Scheme (LUMS) in place Section 11: Planning practises assessment 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. Town Planning Practices Assessment Statutory Compliance Non-statutory Plans/Policies Town Planning Activities Information Systems Organisational Tactics 0% 20% 40% 60% 80% 100% 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 documents and LUMS "Informality" (this can refer to informal settlements, rural villages, or informal business) is accommodated 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 from GDS 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% Makhado Local Municipality :. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 16
17 GIS Spatial analysis and modelling tools Land information system Building Plan Approval Development applications Con sult atio n 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 regulations 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 population and economic growth Models available to forecast population growth (in Support of GDS) Networking with and participation at district or provincial GIS forums Partnerships in place to ensure access to provincial and national datasets GIS strategy in place Staff use system and system functionality as appropriate for their role 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 Surveyor General standardised 21 GIS can be linked to other systems (Billing, valuation roll, LIS) Cadastral changes are recorded and updated on a regular basis 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Makhado Local Municipality :. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 17
18 Strategic alignment Human resources Change control Section 11: Planning practises assessment organisational tactics 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 It must be noted that in terms of Makhado Development Planning Organisational structure, the above officials report to Assistant Manager Town Planning. Function/Section No. of Posts No. of employees Vacancies Management & other Building Control & Regulations Planning & Human Settlement Development Planning N/A N/A N/A Housing & Properties 0 Environmental Management 0 LED Town Planning Makhado Local Municipality :. Developed by i@consulting (Pty) Ltd on behalf of the Housing Development Agency Page 18
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