FINAL TWK CITIZENS REPORT 2022-2023

Citizens Report 2022-2023

Mayor’s Foreword In 2022/23 the coalition Government, consisting of the PA, GOOD and the ANC, provided the municipal administration with a vision, mission and strategic objectives which enabled acceptable levels of service delivery, the provision of services to all, and, in terms of the pro-poor approach of the Coalition, services that specifically focus on the poorest of the poor.

As a government we guided the administration in the provision of the best possible and affordable services to tax and tariff payers. This government understands that the tax and tariff payers are over-burdened and that the decline in financial allocations from the National Equity Funding Scheme and other National Funds leaves the municipality with no choice but to utilize income, through taxes and tariff, to cross-subsidise the services costs of indigent families.

Late Councillor Alderman Karel Papier

The political administration is adamant to convince organs of government that it is a myth to believe that municipalities can generate sufficient income to fund all municipal mandates. As an alternative, this government is giving the administration a clean mandate to identify and recruit funds from non-traditional municipal income sources.

Game Changes to Achieve the Vision The Municipality continued the path it embarked on in 2021/22: To make the Municipality a developmental and pro poor organ of state that can successfully deal with challenges, such as community-based discontent and subsequent actions; enabling an environment in which all people work together; improving municipal sustainability; and enhancing service delivery and sustainability. The pro-poor approach is paving the way towards equality amongst all people; the enhancement of the dignity of all people; harmonious communities, unity in diversity; and access, for all, to scares resources. In a changing environment, Theewaterskloof succeeded to maintain financial, infrastructure and service delivery sustainability; projects based on new ideologies; political stability; a fit-for-purpose administration; managing of land invasions; and extended informal human settlements.

Key Policy Developments Several policies were adjusted, and others were created to comply with various pieces of legislation and to ensure good municipal governance in Theewaterskloof. Key policies amendments focussed on rates, risk management, a risk based internal audit plan for 2022/23; and a SCM Policy.

Key Service Delivery Improvements Service delivery levels depends on the state of infrastructure. In this regard, Council and the administration mitigated several challenges that relates to insufficient bulk services infrastructure. Council adopted a medium to long-term approach to facilitate sustainable and effective infrastructure upgrade and development. After many previous attempts Council established an infrastructure reserve fund.

Mayor’s Foreword cont.

Public Participation The municipality adhered to various pieces of public participation legislation and policies to comply with legal requirements to involve the broader community in enhancing development goals and service delivery. Hence, communities took ownership of projects and developments that impacted heavily on their lives and livelihoods.

Future Focusses The future of sustainable municipal governance and service delivery in Theewaterskloof hinges on the success of the implementation of the restructuring model and the mitigating of key challenges and matters facing the Municipality. In this regard I refer to the foreword of the Municipal Manager. The Municipality will focus on long-term effective and sustainable governance, institutional development, community growth and local economic enhancement. The goal of future actions will be to enhance the pro-poor and the-people-first approach.

Conclusion Local government is where the people and the leaders of the country meet on ground level; it is also the place where people articulate their most basic needs. In the past year the municipality created good relationships and communication tools with the people of Theewaterskloof. There is a need to create an environment where the people can live and play with greater freedom and to facilitate this, the municipality committed to the values and goals of the National Development Plan. As the Executive Mayor of Theewaterskloof Municipality, I commit myself to serve the people of the municipal area who provides us an opportunity to serve them.

I praise the Lord for guiding us in a robust municipal environment and for making it possible for us to not only pursue and achieve the improbable but indeed the “impossible”.

New Mayor’s Opening Remarks In the 2022/23 year Theewaterskloof Municipality made great strides towards Council’s vision, mission, and strategic objectives for this term. Enabling economic growth, creating safe and secure communities, making Theewaterskloof a tourism destination of choice and promoting innovative service delivery opportunities has been at the forefront of the Municipality’s agenda.

Councillor Mary Liebenberg Executive Mayor

Since taking office in September 2023, I have seen the administration and political arms of Theewaterskloof come together during adverse times and great challenges. I have also witnessed the administration exceed in its service delivery goals with the addition of new vehicles, generators, and support staff.

In my inauguration speech I said our Nation often does not aim for the improbable but indeed the impossible. I know Theewaterskloof Municipality has limited resources, but I also know how to lead people to achieve the best with what they have, and I believe that is exactly what we have been doing through partnerships and progressive leadership.

Municipal Manager’s Foreword The Municipality honoured the manifest of Human Rights as articulated in the Constitution; as well as Batho Pele Principles and other adherences.

As a result, the municipality succeeded with, amongst others, certain key interventions as planning and zoning bylaws; and array of municipal by-laws and policies; taxation; local socio-economic business support; collaborating with and between communities; utilising of programs of the provincial and national governments; the advocating off community economic development priorities, in consultation and interaction with communities, organs of the collective government, and the holistic industry.

Wilfred Solomons-Johannes Municipal Manager

A Year of Change It became abundantly clear that municipalities must change on various fronts to remain functional and relevant in its provision of services to all an especially the poorest of the poor. It also became clear that municipalities need to rethink and subsequently redefine sources for sustainable income.

As others, the Theewaterskloof Municipality must change the way it deals with threats and challenges.

I am glad to say that, in the year under review, the Theewaterskloof Municipality administratively and politically arrested control of much of the changed municipal environment

The Changed Nature of Income The Municipality changed its perceptions of municipal sources of revenue and was forced to think outside the box when it identified additional income sources. This was an important intervention as existing income streams are no longer sufficient to generate enough funds to deliver on our mandates and to secure the effectiveness of our infrastructure.

As has been the case for several years, the municipal income for 2022/23 did not grow at the same speed as the holistic community’s demand for extended service delivery programs.

To counter this, I led a program where we identified projects and programmes in which the Municipality could and can tap in as to raise our capacities to develop infrastructure and to create a holistic growth environment.

We laid the platform to tap into non-traditional funds of the state and statutory entities. At the end of the year, it became clear that this out-of-the-box-interventions will result in infrastructure upgrades and development. In this context the Municipality already tapped into the clean green-initiative and a project with Working on Fire.

In the years to follow we will identify more such projects and programmes to recruit funds from new sources of income.

Infrastructure Challenges The Municipality is confronted with holistic aging infrastructure. As mentioned, funds to develop and upgrade infrastructure is limited in terms of own reserves and the national Municipal Infrastructure Grant (MIG).

The Municipality therefore embarked on a special intervention to negotiate infrastructure development funds from national government and organs of state.

A decision was taken in 2022/2023 to implement the infrastructure tariff levy in 2023/2024.

MM’s Foreword cont.

Key Influences on the Municipality The most critical internal and external influences on the municipality remained inadequate national government subsidies for indigent families; inadequate government contributions to the Municipal Infrastructure Grant (MIG); internal inability to spend grants for infrastructure and housing projects; public dissatisfaction; rapidly deteriorating infrastructure and related service delivery effects; the broadened gap between public expectations and municipal capacities; vandalizing of municipal assets; the negative ration of those who pay municipal taxes and tariffs and those who receive indigent support.

Audit Outcome of the Auditor-General The Municipality gained a clean audit outcome for the 2021/22 financial year and an unqualified audit with findings in 2022/2023.. In this regard, it is clear that the systems, measures and governance controls implemented from a financial health perspective, it is extremely positive placing the municipality in a good financial position. I want to express my sincere thanks and appreciation to the administration and political leadership for a job well done.

Customer Care The governing coalition partners developed a methodology whereby it constantly and timeously engages with the public. This mitigates tension and prevent protests and the broadening of the gap between municipal abilities and public expectations.

The integration of social media such as the Collaborator application, website, Facebook, Instagram, Twitter and SMS-communication channels opposed to the traditional means of communication such as newsletters improved municipal communications with the clients, customer and residents.

Financial Sustainability In the year under review, the municipality kept its financial sustainability indicators to acceptable levels. An analysis done by the Auditor-General of South Africa shows that the Theewaterskloof Municipality is one of a decreasing number of municipalities that remains sustainable in the long and short-term.

The Theewaterskloof Municipality developed a sustainable ability to work within the constraints of its revenue and budget. The budget was limited in all respects and did not keep pace with population growth. The national government reduced its contributions to municipalities, but the municipality was able to lower its overheads and to offer quality services.

I thank the Executive Mayor, Alderman Kallie Papier, the coalition partners, the Mayoral Committee (Executive Mayoral Committee) and all Councillors for supporting the administration.

I thank my management team and all the employees who did a great work under testing circumstances.

I thank the communities and stakeholders who worked with the municipality to grow and develop the organisation, communities, and the economy.

I thank our Heavenly Father for his guidance and ever prevailing grace.

Vision & Mission Vision Creating a safe and secure environment and enabling economic growth through innovative servive delivery.

Mission To create and sustain an environment which shall enhance the socioeconomic development capacity and impact of the Theewaterskloof Municipality in accordance with the Vision as stated in the Vision.

Strategic Objectives

1

Basic Services for All

2

Community Safety

3

Improve the social environment fabric of TWK community

4

Healthy and Productive Workforce

5

Maintenance, replacements and upgrades of municipal infrastructure

6

Integrated Human Settlements

7

Make Theewaterskloof the investment destinantion of choice and promote the second and township economy

8

Upgrading of Informal Settlements and prioritising the most needy in housing allocation

9

Democratic, responsive and accountable government

10

Sound financial management and continuous revenue growth

Our Towns Grabouw

The Grabouw/Elgin district is the first town in the Municipal area when driving from Cape Town along the N2. Grabouw is the commercial centre for the vast Elgin Valley, the largest single export fruit-producing area in Southern Africa. The town is well known for its apples, open gardens and is increasingly becoming known as a tourist and wine buying region

Botrivier Tesselaarsdal Tesselaarsdal is the ideal getaway in which to experience unpolluted natural beauty and smalltown community living at its best. There are plenty of opportunities to explore the outdoors even until deep in the night where one will discover some of the clearest Milky Way viewings in South Africa

It takes its name from the Bot River on the west bank of which it is situated The area is known for its vineyards and wine farms, with the well-known Beaumont Farm situated in the town. There is a growing tourism market linked to agri-tourism and wine tasting.

Caledon

Caledon is the centre of a broader agricultural region which produces barley, wheat and wool. Overberg-Agri, which provides services and support to the farming sector, has its head office located in Caledon. The Municipal head offices are in the town along with the regional offices for the Departments of Education, Social Development and Home Affairs.

Villiersdorp

Greyton

The town is well known for its major landmark, the Theewaterskloof Dam, and its agricultural activity. Villiersdorp is part of both the Theewaterskloof Dam and the Elandskloof Dam catchment areas situated behind the Groenland and Hottentots Holland Mountain ranges and at the foot of the Blokkop Peak

Greyton is both a lifestyle and tourism destination, while the surrounding areas are farmlands. This beautiful small town is nestled at the foot of the Riviersonderend Mountains with the Riviersonderend River on its boundary and surrounded by mountains.

Genadendal

Genadendal, or 'Valley of Grace', was established by the Moravian Church in the mid- 1700s and is the oldest mission station in South Africa. The economy of the town is dominated by 'development' projects, mostly driven by local development organizations, a well as small-scale agricultural production and subsistence gardening.

Riviersonderend Riviersonderend is located on a loop of the Sonderend River, from which it takes its name. The N2 national road passes through Riviersonderend, forming its main street. Riviersonderend offers beautiful mountain and river scenery, a nine-hole golf course and sightings of South Africa's national bird, the blue crane.

Know your Councillors Cllr Mary Liebenberg (PA) Executive Mayor

Cllr Petrus Stander Cllr Christiaan Cloete (DA) (DA) Ward 1 Ward 2 Riviersonderend Greyton/Genadendal

Cllr Rina Mienies (ANC) Ward 6 Villiersdorp

Cllr Mekie PlatoMentoor (DA) Ward 7 Botrivier

Cllr Denzil Jacobs (DA) Ward 11 Grabouw

Cllr John Michels (GOOD) Deputy Mayor

Cllr Derick Appel (ANC) Speaker

Cllr Carol Benjamin (DA) Ward 3 Caledon, Myddleton, Tesselaarsdal

Cllr Yvonne van Tonder (DA) Ward 4 Caledon Town

Cllr Michelle Botes (DA) Ward 5 Villiversdorp

Cllr Mzwanele Mpambani (ANC) Ward 8 Grabouw

Cllr Dawid Jooste (DA) Ward 9 Villiersdorp

Cllr Craig Smith (DA) Ward 10 Grabouw

Cllr Mamothipane Shale (ANC) Ward 12 Grabouw

Cllr Mbongeni Nomkoko (ANC) Ward 13 Grabouw

Cllr Samuel Fredericks (DA) Ward 14 Grabouw

Know your Councillors Cllr Mhlawakhe Gana (SRWP) Proportial Representative Councillor

Cllr Thozama Mangcayi (EFF) Proportial Representative Councillor

Cllr Unathi Mabulu (DA) Proportial Representative Councillor

Cllr Michele Mathews (GOOD) Proportial Representative Councillor

Cllr Tapelo Princess Lesesa (ANC) Proportial Representative Councillor

Cllr Jennifer Mckenzie (GOOD) Proportial Representative Councillor

Cllr Monwabisi Raymond Nongxaza Cllr Henry Syster (PA) (ANC) Proportial Representative Proportial Representative Councillor Councillor

Cllr Bongiwe Mkhwibiso (ANC) Proportial Representative Councillor

Cllr Theunis Zimmerman (FF+) Proportial Representative Councillor

Population Summary TWK Population

The municipal population has risen by 28% within 11 years, from 108 864 to 139 563.

(Census 2022 data) Population by Race Indian/Asian 0.3%

White 8.5%

Population by Gender

Other 1.3%

Black African 34.7%

Female 49.9%

Male 50.1%

Coloured 55.2%

Population by Age Group Elderly (65+) 6.1%

Young Children (0-14 years) 21.7%

Number of Households

43 121

80%

Average Household Size

Educational Institution Attendance (5-24 Years

3.2

Working Age (15 to 64 years) 72.2%

Households in Formal Dwellings

61%

Basic Services Summary Service Delivery to Households

No of Households Access to Water (inside dwelling)

32 785

No of Households Access to flush toilet

36 220

No of Households Access to Electricity for lighting

43 40 120 233

No of Households Access to Refuse Removal (once a week by Municipality

The number of households with access to electricity excludes the Eskom supplied towns within the Municipal borders.

32 211

Water and Electricity Losses Water losses

Electricity losses

National Norm: Between 15% to 30%

National Norm: Between 0% to 15%

29.80%

The number of households with access to water and sanitation includes informal settlements.

5.40%

Initiatives have been implemented to reduce the water losses such as: replacement of meters, old pipes, network infrastructure public awareness campaigns EPWP team to repair water infrastructure in informal settlements

Water Services Milestones 1

GRABOUW WATER TREATMENT PLANT PUMP STATION UPGRADING The pump station was fully upgraded with the replacement of pumps and distribution boards. A standby generator was also installed to overcome the loadshedding challenge. The supply of water has since stabilised.

2

DRINKING WATER ANALYSIS The Municipality achieved 93.40% on the overall drinking water analysis (in accordance with SANS 241-1:2015

Sanitation Services Milestones 1

CALEDON WASTE WATER TREATMENT WORKS (WWTW) The aim of this project is to facilitate the provision of basic services to more households, specifically those users with no formal form of sanitation and those using dry sanitation system, the provision of other support services has to be secured.

With the successful completion of this project the municipality has sufficient capacity for the future growth of Caledon.

2

GREYTON WWTW With the completion of the current phase of this project, the Newly Built Greyton WWTW now has sufficient capacity up to 20 years population growth as well as the proposed low-cost housing project.

Electricity Services Milestones 1

INSTALLATION OF HIGH MAST LIGHTS IN GRABOUW The installation of 35 high mast lights in Grabouw has been completed.

2

GENERATORS AT WTW IN VILLIERSDORP AND 19 DAMME Resolved the electrical supply outages due to loadshedding, which helps with the pumping of water and resolves water shortages.

Solid Waste Management Milestones 1

2

GREYTON DROP OFF According to the decommissioning license, decommissioning should commence on or before 7 November 2025 whereafter the site will have to be decommissioned and rehabilitated. The Drop Off will be the alternative waste management system where waste will have to be temporarily stored before it will be transported to the regional landfill site, Karwyderskraal, for disposal.

CALEDON WASTE TRANSFER STATION AND MATERIAL RECOVERY FACILITY It is uneconomical for the collection vehicles from Caledon to drive directly to the regional landfill site, Karwyderskraal, due to the location thereof, therefore the transfer station will be the alternative waste management system where waste will have to be temporarily stored before it will be transported to the regional landfill site for disposal.

SDBIP Performance The organisational performance is evaluated by means of a municipal scorecard namely, the Top Layer Service Delivery and Budget Implementation Plan (SDBIP) at organisational level.

KPI's Extremely Well Met 5.6%

KPI's not met 22.5%

KPI's Well Met 38% KPI's almost met 12.7%

KPI's Met 21.1%

As illustrated in the graph above, the Municipality met 65% (46 of 71) of the applicable KPI’s for the 2022/23 financial year. 35% (25 of 71) kpi targets were not achieved for the 2022/23 financial year.

SDBIP Performance per Department KPI Not Met

KPI Almost Met

KPI Met

KPI Well Met

KPI Extremely Well Met

MM

FS

TIIS

Comm S

EDP

CS 0

5

10 Departments Office of the Municipal Manager (MM) Financial Services (FS) Technical and Infrastructure Implementation Plan (TIIS) Community Services (Comm S) Economic Development and Planning (EDP) Corporate Services (CS)

15

20

Financial Summary 2022/23

Total Revenue (excluding capital transfers and contributions)

Total Expenditure

R664

R805

Total Operating Transfers and Grants

Municipal Cost Containment

Million

R198

Million

Million

R8

Million

Financial Performance 2022/23

Total Revenue per Service Other own revenue 14.8%

Property Rates 20.5%

Total Expenditure Other Expenditure 15.7% Employee Costs 30.7%

Transfers and Subsidies 1.1%

Contracted Services 15.2% Transfers Operational 21.8%

Remuneration of Councillors 1.6%

Inventory Consumed 4.4% Investment Revenue 1.7%

Debt Impairment Bulk Purchases 12.4% Finance Charges 10.9% Depreciation & 4% Asset Impairment

Service Charges 41.2%

4%

Actual vs Budget Performance 2022/23 Budget

Actual

1000000

800000

600000

400000

200000

0

Total Revenue

Total Expenditure

Financial Ratios 2022/23 Liquidity Ratio Measures the municipality’s ability to pay its bills and is calculated by dividing the monetary assets (due within one year) by the municipality’s current liabilities. A higher ratio is better

National Norm - 1:1 2021/22

1:1.9

2022/23

1:0.9

Debt Coverage Ratio

Cost Coverage Ratio It explain how many months expenditure can be covered by cash and liquid assets available to the Municipality excluding utilisation of grants calculated

National Norm - 1 to 3 months 2021/22

2022/23

1.6 4.3 months months Total Outstanding Service Debtors

The number of times debt payments can be accommodated within operating revenue (excluding grants). This in turn represents the ease with which debt payments can be accommodated by the municipality.

Measures how much money is still owed by the community for water, electricity, waste removal and sanitation compared to how much money has been paid for these services. It is calculated by dividing the total outstanding debtors by the annual revenue.

A lower score is better

National Norm - Below 45%

No National Norm

2021/22

11.2%

2022/23

18.4%

Debtors Payment Percentage

The Ratio indicates the collection rate; i.e. level of payments. It measures increases or decreases in Debtors relative to annual billed revenue. In addition, in order to determine the real collection rate bad debts written-off is taken into consideration.

National Norm: 95% 2021/22

2022/23

83.92% 83.30%

2021/22

11.6%

2022/23

11.9%

Cash Position Cash and cash equivalents (CCE) refers to the line item on the balance sheet that reports the value of a municipality's assets that are cash or can be converted into cash immediately CCE as at 2021/22

CCE as at 2021/22

R160 mil

R86 mil

Audit Outcomes 2022/23 Audit Opinion from the AG

The Municipality received an unqualified audit with findings for the period under review The financial statements are free from material misstatements but findings have been raised.

Contact us

The full version of the 2022/23 Annual Report can be obtained at our municipal offices, libraries and the municipal website or alternatively contact Verohne Arendse via email: verohnear@twk.gov.za Telephone 028 214 3300

Emergency 080 021 4730

Official Website twk.gov.za Official Facebook Page www.facebook.com/twkmun Official Instagram Account www.instagram.com/twkmun Official Twitter/X Account www.twitter.com/twkmun